Loading...
HRA 08/11/1988 - 6522HOUSING & REDEVELOPMENT AUTHORITY FETING 7:00 P. m THURSDAY, AUGUST 11, 198 Rick Pribyl Finance Director City of Fridley AGENDA HOUSING & REDWELORmMU AUTHORI'T'Y MG. THURSDAY, AUGUST 11, 1988 7 :00 P.M., Location: unity Education Center 6085 - 7th Street N.E. CALL W ORDER: bay D RDLL CALL:' APPRUVAL OF MINWES: July 14, 1988 - --<-A oco 1 4NSIDERATIDN OF LOU LUNDGREN P1DRUSAL . . . . . . . . . . . . . . . . . . 1 -1G VQUNSIDERATIDN OF REDEVELOPMENT P1DFOSAL FOR 57TH PLACE CDs+ e SD' i . . 3c Ss n� 4/ODNSIDERATION OF RESOLUTION AMENDING CIVIC CENTER TAX ��✓ INCREMENT DISTRICT M IWLUDE PLAZA, RAMP ,� 3-3G VCDNSIDERATX)N OF BIDS FOR G0NSTRUCTIDN OF PLAZA RAMP . . . . . . . . . . . 4 -4A �NSIDERATIDN OF SUBORDINATING BRA: S• SEODND MRIGAGE ON THE 1� FRIDLEY PLAZf, OFFICE BUILDING . . . .` 5-5C 4UPDATE ON "THE MTrAGES" DEVELOPMENT PR►DEOSAL . . . . . . . . . . . . . . . 6 -6B ESTIMATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - CLAIMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-8A OTHER BUS INESS : ADJOURNMENr CITY OF FRIDLEY HDUSn G & REDEIE{+OPMENr AUTHORITY DMUT S, JULY 14, 1988 CALL TO ORDER: Chairperson Commers called the July 14, 1988, Housing & Redevelopment Authority meeting to order at 7 :12 p.m. ROLL CALL: Members Present: Larry Canners, Virginia Schnabel, Duane Prairie John Meyer, Walter Rasmussen Members Absent: None Others Present: Jock Robertson, Executive Director of HRA Jim Hill, Acting City Manager Julie Burt, Asst. Finance Officer Samantha Orduno, Management Assistant Dave Newman, HRA Attorney Jim Casserly, 215 S. 11th Street, Suite 200, Yp1s. Dennis Rens, Superintendent of Schools Gordon Sangster, School Board - District 14 Lou & June Lundgren, 343 Kellogg Blvd., St. Paul Joe Commers, The Conners Crnpany Bruce Lundgren, Security Development Corp. Dewey Johnson, Security Development Corp. Bruce Peterson, Security Development Corp. Paul Strother, 7520 Market Place Drive, Eden Prairie Ken Bureau, Rosewood Corporation Dave Evibson, 7545 Office Ridge Circle, Eden Prairie William Fogerty, 12340 Radisson Fd., Blaine Cheryl Stinski, 1614 Berne Circle Margery Fehling, 1314 Marquette Ron Christenson, Bossardt Christenson David Kroos, Boaanan & Associates APPRWAL OF JUNE 9, 1988, HJUSIM & REDEVELOPNM AUTHORITY MINUIW: NDTIDN by Mr. Rasmussen, seconded by Ms. Schnabel, to approve the June 9, 1988, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GDM4&RS DECLARED THE NOTION CARRIED UNANDDUSLY. 1. TAX INCREMENT DISTRICT'S /SC -UOL LEVIES: Mr. kL-mwan stated he wanted to note for the record that both he and Mr. Prairie would not be participating in any discussion due to a conflict of interest. Mr. Robertson stated that the 1988 session of the Legislature passed an amerrhnent to the tax law which essentially allows for a mechanism for school -1- H:)uSIlu & RIDEVIIDpmE2y AUTFDRiw Mmnp, JULY 14, 1988 districts to recover the excess tax increment in tax increment districts if the school district has raised its mill levy through a referendum after the bonds have been sold. Essentially, the purpose of that is at the time an HRA sells bonds for a tax increment district, they project out the increment using the present mill rate. If the school district then subsequently raises the mill rate for other reasons, the HRA is essentially collecting extra tax revenue they did not originally foresee they were going to get. Therefore, if both the School Board and the City Council, through resolution, agree to that refund, then that is possible. The law is silent on the timing of when that occurs. A conservative reading of the law would indicate that it would be an annual type of refund. Mr. Robertson stated he bas reviewed this and believes that the potential exposure on this for the HRA would be something in the neighborhood of $100,000 - 200,000, depending on which districts essentially agreed with the City Council, and the City Council had also agreed. The potential for the school districts was as follows: School District 11 - $ 10,000 School District 13 - 33,000 School District 14 - 115,000 School District 16 - 43,000 Mr. Robertson stated the HRA had received a response he had requested f ram James O'Meara of Briggs & Morgan, the HRA bond attorney, dated July 13, 1988, in which Mr. O'Meara had stated: "...sane care must be taken to avoid impairing the 'contract' that exists with the bond holders concerning the payment of the respective obligations from the tax increment. The limited revenue note would be of particular concern here, but care needs to be taken with the City's general obligation tax increment issues as well." Mr. Robertson stated Mr. O'Meara had also stated he would be happy to assist the City and the HRA in assembling and reviewing that information and determining what obligations or possibilities exist in this regard. Mr. Robertson stated he had also talked with Julie Burt, Asst. Finance Officer, and she is in the process of directing about a one -month analysis of the HRA's obligations on paying those bonds. Dr. Dennis Rene stated Mr. Robertson bad very clearly and succinctly defined the amendment to the statute that affects this issue. School District 14 is approaching the HRA and asking for the HRA's support as they approach the City Council on this issue. The School District would like to gain access to those revenues, because it is important to the School District in terms of the long range budget and in terms of maintaining programs for students, and, hopefully, in improving programs for students. They are also currently involved in discussions with Spring Lake Parris and Columbia Heights and St. Anthony in terms of bow they might merge some of their resources and do a better job of providing options for students. They have been through a two year process in developing a study designed to allow them to do that effectively, and they have not been able to implement that study currently -2- HDUSIl . & REDZIEWR4E W AUMRMY MEETM, JULY 14, 1988 because of lack of funding without negatively impacting programs for students. They also see accessing these funds as an opportunity to do that. So, they are requesting the HRA's support because the School District feels this has immediate and some long range implications for the schools in Fridley, as well as Spring Lake Park and Columbia Heights. Mr. Comers asked what the timing was for the School District in approaching the City Council with this request. Mr. Robertson stated it was his reaction that they have to have the analysis done before that timing can be set. The City Council will ask questions about what the financial implications are, and the staff does not have those answers yet. Mr. Gordon Sangster stated this levy applies only to the referendum money which was passed subsequent to the time the bowls were issued. It should be pointed out that the whole school mill levy, particularly the part that is state- imposed, has continued to increase over the years and the additional revenues due to that are not affected. Mr. Casserly stated the State Legislature has posed an additional problem for the City, and that is the impact of eliminating homestead credits and how it is being pulled into local government aids. What cities are starting to find is they may, in fact, have substantial deficiencies in tax increment districts. He thought the Legislature was going to have to correct some of these problems in the next session. Mr. Robertson stated the HRA will probably need to retain the services of Mr. O'Meara in order to do the analysis, and he would like authorization to do-that. Mr. Camters stated it was the general concensus of the HRA to obtain the services of Mr. O'Meara to proceed with the analysis of the HRA's position with this issue. Hopefully, they will have more information by the next HRA meeting and will be able to arrive at some kind of decision. 2. CDNSIDERATIDN OF LDU LUNDGREN PRDFOSAL: Mr. Newman stated that at the last meeting, the HRA authorized an additional 30 day extension on Mr. Lundgren's letter of credit. That extension was received in a timely fashion, and the letter of credit has been extended to July 26. Mr. Lundgren stated he had a meeting confirmed for Monday, July 18, at 10:00 a.m. in his office which will be attended by Bob O'Brian, President of Centennial Mortgage, Terry Chuvala, Chief Underwriter, Mr. Jensen, President of The Bank of Springfield, and himself. He stated this was a meeting that was promised for last Tuesday, and which he had been led to believe would have been held a week prior to that. At this meeting, they will know the number that can be accomplished under the first mortgage, and he believed that within two days of July 18, they will be able to produce all the funding for the first phase. As far as he knew, they were not talking about any different a deal than what has been previously discussed. He stated things look good, but it is going to take time. -3- HDUSIlG & RIDfY�[DWWr AWWRMT Morro, JULY 14, 1988 .. Mr. Meyer stated that if the letter of credit expires on July 26, does this mean the HRA bas to have a special meeting? Mr. Newman stated that once Mr. Lundgren has a specific proposal put together, it would be his recommendation that the HRA call a special meeting. In light of the history of this project, if there was to be another extension granted, the HRA should look at what is being proposed, rather than deferring it to staff. Mr. Meyer stated he would be in favor of a special meeting, assuming there was some valid progress at the meeting on Monday with Centennial Mortgage. Mr. Robertson stated that staff bad indicated to the HRA previously that the HRA might want to meet jointly with the City Council on July 25 to review the recommendations from the architects and engineers on the plaza ramp construction and civic center remodeling. Or, the HRA coud defer it to their regular August 11 meeting. If they did wish to meet jointly with the City Council on July 25, they could also take this matter up at that time. Mr. Conmers stated that if Mr. Lundgren does make a proposal of ter the July 18th meeting, would staff have enough time to analyze this proposal to determine whether it was feasible for the HRA to consider on July 25, or should they wzit until the August meeting? Mr. Newman stated staff should be able to have an analysis put together by July 25. Staff should be able to give the HRA a general sense of what is going on and a general flavor of what is being proposed by July 25. Mr. Prairie and Ms. Schnabel stated they would not be able to attend a special meeting on July 25. Mr. Conmers stated they should probably get an extension on the letter of credit past the August 11 meeting. If Mr. Lundgren has a firm proposal before then, the HRA could address it on July 25th, but if there is no quorum, it could be taken up at the August meeting. Mr. Lundgren stated he had no problem in getting the letter of credit extended for another 30 days, but he did not want to cause any more problems or add any more extra meetings than was necessary; however, they are in a time bind and expect to have some information for the HRA after Monday's meeting. Mr. Newman stated that from staff's perspective, he had a problem with granting an automatic 30 day extension. Staff has not seen anything different from last month. r1iey have already granted one extension. When they set up the original 90 day period, they did so after talking to the people f rcm Centennial who were very adamant they could do this within the 90 days, and now it has been granted an extension for an additional 30 days. In light of what has transpired with this prcj ect, it was his feeling they should be imposing the requirement to see something significant before granting another extension. -4- HOUSnG & REDZIE[APNENr_AMURMY M 3M, JULY 14, 1988 Mr. Cmmers stated he bad no problem with that, except the problem that it was possible there would not be a quormn of HRA manbers on July 25, and he did not think they wanted Mr. Lundgren's letter of credit called because of a default of that nature. Mr. Prairie asked if they could give staff the authority to grant an extension if staff felt there were sufficient grounds to do so. Mr. Newman stated the HRA has done that before, and so they could certainly do-it again; but there should be some qualifying factor if staff is asked to do it again. It is going to be a very important decision. Mr. Rasmussen stated that if it was the HRA's intension to grant an extension on Mr. Lundgren's letter of credit providing Mr. Lundgren's proposal was feasible, then they should be able to grant that 30 day extension now, rather than having a special meeting. Mr. Newman stated that if the HRA was seriously considering granting another extension on the letter of credit, he would suggest they extend it until August 15, since the HRA's next meeting was August 11. NDTIDN by Mr. Meyer, seconded by Mr. Rasmussen, to grant an extension on Mr. Lundgren's letter of credit to August 15, 1988. UEON A VOICE VOTE, ALL VOTIM AYE, CHAIRPERSON GDM4ERS DECLARED THE MDTIDN CARRIED UNANBDUSLY. Mr. Ccnmers stated he would again caution Mr. Lundgren that he cannot wait until the last minute to get all this information to staff and then expect staff to have it analyzed for the HRA by the August meeting. The HRA was very reluctant to extern this letter of credit any further. 3. CONSIDERATIDN OF REDEVELOPMENT PR)JECT AT 57TH & UNIVERSITY AVENUE: Mr. Robertson stated the history of this started about a year ago when the HRA was considering the plans University Avenue Corridor Plan, and they received a directive from the City Council to look at potential projects at the gateway to the City at the south end of the Corridor in the vicinity of 57th & University. This spring staff prepared a preliminary rough estimate of what the acquisition costs would be, and those costs were in the neighborhood of $750,000. That cost did not include street and utility improvements. The HRA then directed staff to prepare estimates of what that should be. Mr. Robertson stated that in the meantime, the City received responses f ram two different developers of their intense interest in the site; and in consultation with Dave Newman, they told the developers it was the HRA's policy that where the HRA has site control, the HRA review the proposals and pick the developer. In the case where the developer has site control, then the HRA would deal exclusively with the developer who had site control; for instance, the Springbrook Apartments. Within a week of each other, they bad two different developers, each with options on different parcels. Staff has -5- HDUS= & B�PEVEEDPNM ALmuRmly p=IW, JUE&Y 14, 1988 attempted to be as fair as possible in reviewing the proposals. The HRA reviewed one proposal at the June meeting, and the other developer was at this meeting to present their proposal. Mr. Robertson stated Mr. Casserly has done a financial analysis on both the proposals. Mr. Joe Cambers, The Comers C =any, stated he was very happy to have all six members of their development team at the meeting. He stated he was the President and owner of The Cammers C:ampany, a real estate and development company, located in Roseville, Minnesota. He stated he and the other members of the development team would like to communicate to the HRA the key issues they think are very pertinent regarding their proposal for the redevelopment at 57th & University which they have termed "57th Place ". Included in their presentation were 9 items: (1) a short biographical sketch of the main members of the development team; (2) actual plan and specifications (3) tenant mix (4) construction schedule (5) conments on site acquisition (6) comments on the property analysis (7) comments on the profoma cost statement (8) comments on the profoma operating statement (9) financial analysis Mr. Joe Cammers stated he would like to introduce the three principles of Security Development Corporation, partners in this venture: Mr. Bruce Lundgren, Senior Vice President; Mr. Dewey Johnson, Vice President; and Bruce Peterson, President and Owner. Mr. Bruce Lundgren stated Security Development Corporation was 12 years old, located in Eden Prairie. The purpose of their company was to develop shopping centers, not only from the ground up on vacant land, but also redevelopment work — redevelopment work including buildings which at one time had been shopping centers or continue to be, but aging has caused them to need redevelopment, expansion, updating, etc. Another was to participate in taking nonretail buildings, occasionally industrial buildings, and doing restoration and occasional historical register -type projects. Mr. Bruce Lundgren stated it was important to stress that their experience has included quite a few projects that have involved a partnership between the City and the developer, at least a joint venture of efforts--projects that have included UDAG grants, state grants, tax incremet programs. They have done projects in Minneapolis (Calhoun Square) ; Grand Rapids; Detroit Lakes; Cambridge; River Falls, Wisconsin; and Albert Lea. They have also done regular projects that entail taking nonretail buildings and converting -6- HOUS= & REL)BJELOPMENr AUMR1TY NMIM, JULY 14, 1988 then to retail. They have done these kinds of projects in Duluth, Red Wing (St. James Hotel & Mall). Mr. Bruce Lundgren stated they have a number of projects in process in Laurel Village, strip centers in Plymouth; Oakdale; Hudson, Wisconsin; Forest Lake; Blaine and North St. Paul. Mr. Bruce Lundgren stated they were essentially a five state company with complete expertise in shopping centers. They were grateful for the opportunity here in Fridley and would like to be part of Fridley's redevelopment. Mr. Joe Cmmers introduced his architect, Mr. Paul Strother, and Ken Bureau, the construction manager, who was Principal and Owner of Rosewood Corporation which owns Rosewood Construction. Mr. Joe Campers stated that regarding himself, he has been in the construction business all his adult life; first as a subcontractor in a family business supplying to major general contractors. Concurrently, he has been investing and developing real estate, strip centers, office /warehouses, apartments. He presently owned a retail center in Bloomington and in Roseville, and had substantial real estate holdings. Mr. Paul Strother showed an aerial photo of the site. He described the proposed configuration of the site. He stated the service road changes its orientation to go around the site, maintaining the existing residential to the east, Holiday to the north, and they have oriented the shopping center such that the traffic and parking activity was all oriented to University Avenue and 57th. The lesser active portions of the property are toward the residential site. They are further screening the project on the residential side with berming and landscaping. Mr. Strother stated one of the criteria they had to work with was Rapid Oil Change wanted to stay on the site, and so they integrated that function into the retail center and located them adjacent to 57th Avenue. Traffic will enter the project off 57th Avenue, and the Rapid Oil activity will be confined to one end with the retail off to the north. Mr. Strother stated that in their discussions with the City, there was an interest on the part of the City to maintain a more downtown appearance or a more vertical appearance. To achieve that, they have added some verticality in sane instances. He stated the building has developed facades, both front and rear, so it will look good fxam all sides. They have raised the parapet in a variety of locations for interest, but it was raised throughout so the mechanical equipment was screened from the road and the neighbors to the rear. Mr. Strother stated part of the street scape that is being developed for the University Avenue Corridor was a lighting system, and they will be integrating that lighting system within the project. Mr. Meyer asked if there was enough parking for the project. -7- HDUSIlm & rann pmy AUPF nny Morm, JULY 14, 1988 Mr. Strother stated they have been able to meet City Code in all instances, so there are no variances requested. According to City Code; they are required to have 129 stalls, and 129 stalls are being provided. They feel this parking is very adequate. Mr. Bruce Lundgren stated the way the center is laid out, they have a 6 car per 1,000 sq. ft. ratio. The Urban Lard Institute that compiled a parking study about three years ago recd m nds as low as 4 cars per 1, 000 sq. ft. for centers of this type. They are providing at least 2 cars per 1, 000 sq. ft. above that. Most centers they are building today are 5 cars per 1, 000 sq. ft. with 9 ft. wide parking stalls. The City of Fridley is requiring 10 ft. stalls and 6 cars per 1,000 sq. ft., so they were above and beyond what is normally required for a retail center. Mr. Bruce Lundgren stated his specialty was in retail leasing which he has been doing for about 11 years on all types of centers. Lately, they have been doing a lot of small specialty centers. Strip centers are so much different today than they were in the 1960's, so they have to accentuate the tenant mix and bring in a quality tenant environment along with quality design. Mr. Bruce Lundgren stated that in this project, they are incorporating Rapid Oil on the south end of the site, and on the north end they are incorporating a "family style" restaurant (3,500-4,000 sq. ft.) . The balance of the shops will be of varied uses. He stated he has eat been out leasing at this point, but they do have the capability in -house to do the job. He believed they have the largest staff for shopping centers in Minnesota. They feel confident about the leasability of the project, and it will be a quality leasing job. The uses will include primarily retail, restaurant, some office and service type businesses. Mr. Bruce Lundgren stated one of the concerns by city staff was if they could incorporate Rapid Oil into a retail shopping center. He stated they feel it can be done, because they have had experience in doing that in 3 -4 locations. As well, Rapid Oil (owned by Ashland Oil) has had similar experiences in other midwest areas. He stated Mr. Johnson has leased three different buildings with retail next to Rapid Oil. Mr. Dewey Johnson stated they have had the good fortune of being the leasing representative for the owner of Rapid Oil and have leased with good success next to Rapid Oil. Same locations where this was done were in Highland Park, Brooklyn Park, and Maplewood. He stated he had pictures showing these locations. Mr. Joe Commers stated they feel very confident that they can start construction on April 1, 1989, and complete the project by Oct. 1, 1989, with the idea that this summer and fall would be for complete site acquisition and time for location of the street and public utilities. Mr. Joe Commers stated that regarding site acquisition, he had the following key dates and infomations -8- IDUSnr. & RIDIIJECOPMEDU ALM DRMY MEErIlG, JULY 14, 1988 Feb. 9, 1988: Met with Mr. Robertson and Mr. Robinson when they expressed that the HRA was interested in-upgrading 57th/University and the University Avenue Corridor. He was told if he was interested in the development to go ahead and move aggressively on the options to purchase the subject parcels. At that time, he and Mr. Lundgren aggressively pursued the owners toward site acquisition. He was also told by City Staff that they wanted to maximize the site and provide some pedestrian amenities. Mar. 25, 1988: He was told by staff (Mr. Jim Robinson) that the three things they were going to evaluate was site control, quality of the development, and what the developer was willing to pay for the site. At that time, another develoer had entered the process. April 5, 1988: Mr. Robertson told Mr. Lundgren that the HRA was ready to- move ahead with a substantial write -down on the property. My 10, 1988: He sent a letter to Mr. Robinson informing him of their completed and signed first option to purchase the old Rapid Oil site. This was the first successful option to purchase of the subject property after 5 weeks of negotiation with attorneys of Ashland Oil in Tulsa, Oklahcma. June 26, 1988: They acquired the option to purchase the Rainko and 1cena Schuur property at 5755 University Avenue, which was the second largest parcel in the total complex of property. This gave them 67% of the total parcels of the lard, and the only parcels that remain at this time are three small lots, and one duplex which is already for sale on the market. This also gave them the control of the frontage of both University and 57th Avenues. Mr. Joe Cammers reviewed the property analysis. Mr. Brace Lundgren reviewed the proforma cost statement and the proforma operating statement. He stated the proforma cost statement was to show the HRA the way they look at the project frrm a cost point of view and why they think their price for the lard was as much as they can afford based on common cost for putting together this type of development. Mr. Joe Cmuers stated they have estimated the cost of the retail center to be $1,550,000, and they will pick up $350,000; the City's portion estimated at $355,000 of lard writedown. The City will be responsible for relocation of all utilities on the site, - relocation of the frontage road, removal of all buildngs on the site, and warranting that the property is free and clear of any soil contamination, being responsible for removing or correcting any soil contamination problems. Mr. Joe Ccmmers stated they estimate new taxes on the property to be approxi,,,ately $2.75/sq. ft. or $52,212.50 annually. The net gain and /or tax -9- HOUSIM & REDNEEOPMENr AIMDRMY M IMS JULY 14, 1980 increment would be $40,775.57 based on 1988 taxes payable of $12,436.93 for the current properly owners. They have suggested that public improvements not be included in that tax increment to be financed by this project. They are suggesting that it be funded scene other way, separate from the land writedown. Mr. Joe Comers stated that on July 1, the day he handed the proposal to Mr. Robertson, Mr. Robertson told him that the city engineers had come up with sane estimates for street improvements of $54, 000, the shallow water loop would be $25, 000, and the sanitary sewer would be $75, 000 - -for a total of $154,000 high and $75,000 low. Mr. Joe Comers stated they simply cannot afford a tax assessment based on the fact that they are already paying $2.75/sq. ft. for taxes. That would be at the high end, and they cannot burden their retailers any further without causing severe hardships. Mr. Joe Clo mers stated that, in summary, they suggest the City go ahead with this project with the assumption that this corner is of a high priority, and that the City will have to make a commitment to do this project. The City was paying some money now for the street relocation and public improvments, but they are going to improve that whole corridor. They believe this corner is going to set the tone for the whole University Avenue Corridor along that east side. Mr. Joe Commers stated they have done their work and have been very committed to this project and to making this project happen. They now really have what the City needs and wants. They control 67% of the total package and can go faster because of what , they control. They are looking forward to working with the HRA and with staff as they pursue this mutually beneficial project. Mr. Meyer asked how Mr. Comers felt about having Rapid Oil in the project. Mr. Joe Comers stated that, as pointed out by Mr. Lundgren, they feel very confident that they can incorporate Rapid Oil into an upscale retail development. Rapid Oil has made money on this corner, and they value this corner very highly. The only mW they could really approach a development on this corner was--to incorporate Rapid Oil into the project. They did not see that as a negative, but as a plus. Mr. Meyer asked if any kind of market study was needed to predict the success of this development. Mr. Bruce Lundgren stated they have done some preliminary site studies and have been familiar with this site for sane time. He thought the main issue they were looking at on University Avenue was the access. With good access, their strength and viability as a retailer was enhanced. This site has both access and visibility. They have done a market run on the trade area and a computer profile, and -they feel confident this site will produce a quality retail mix, and they also feel strongly about the leasability of the site. It is a good retail site. -10- FDUSIlW & RIDEJIIiopNETP AimDRIry mmrjw, JULY 14, 1988 Mr. Jim Casserly stated he bad tried to approach this as a problem of what the total costs will be to the HRA. He was mt passing on the merits of any proposals his mission was to find out what it costs to do the project. He stated he thought that almost any proposal for this site was not going to pay for itself in terms of what the total cost is going to be for the HRA. The reason for this is a real honest redevelopment project. Because of that, they already have existing structures on the site, and that means there is already a tax base. The way the tax increment works, they freeze the base so when they remove the existing structures and put something new on the site, the first part that is put on new goes to just make up for what they already bad there, so they only get the additional part of the increment. As they work with tougher and tougher sites to redevelop, this problem becomes more difficult, because with a redevelopment, they already have an existing base, and they always have the increased cost of acquisition (relocation, demolition, and the costs of getting rid of the buildings themselves). So, the Problem bad nothing to do with the proposals ,_ _ . __ .__�...� ti 4- �; ., I-%, � W-1 +-r ; -Went. It was an HRA problem, not a developer problem. Mr. Casserly stated staff met with both developers separately or for the because they property aryl wanted to find out what they felt they could really pay what kind of taxes could really be supported. In his judgement, both develoers were being very, very accurate. They are 8 cents apart in what they think the lessees can afford to pay, and they are reasonably close on what they think the market value of the site is. However, the most important thing to note was that neither development, even if they take 13 years of tax increments, would have enough to be a self - supporting activity on this site. The HRA has to put something additional into the site to make it work. - Mr. Casserly reviewed the public costs for both Winfield Development and The Comers Catlpany /Security Development Corporation proposals. Mr. Bill Fogerty asked if there was any analyzation of both proposals, because he knew that Winfield Development would accept $154, 000 - $175, 000 in special assessments to the property. That was the base starting price for them. He stated their uses for the property were different from the other developer in that they would have more professional -type uses. Their anchor terant is a bank, and they have a f inn commitment for the bank. They are also willing to put up a letter of credit to start the project. Mr. Joe Commers stated that with the Winfield proposal or analysis, the costs would be substantially higher because of relocation costs and the lawsuits would be several hundred dollars on the part of Ashland Oil. Rapid Oil values the site very highly and are mt willing sellers. He stated they have m relocation costs on the maj or parcels they control. Mr. Joe Ccmmers asked what the scenario would be if they just Put the writedown in there and left the city improvements out to be funded elsewhere. Mr. Casserly stated if they pull $150,000 out of this, they would Pull out -11- HDUSn G & RIDDJIIOPMENr AUPEDR3!rY NEEIlG, JULY 141 1988 another $150,000 and probably another $50,000 after that, so they would be reducing this by a good $350,000. - Mr. Joe (Jammers stated he thought it would be much more attractive to the HRA if the City improvements were funded either through the City or elsewhere. Mr. Meyer stated that at the last joint City Council /HRA joint meeting, the City Council stated that even such things as maintenance of HRA projects would have to be funded with HRA funds. This included the beautification of University Avenue Corridor. Mr. Joe Cammtmmers stated if there were other funds, they would suggest that for a successful development, the City improvements be dealt with in another manner, other than putting the burden on this project. Mr. Meyer stated he understood Mr. Ccnmers' point, but just wanted him to know what the City Council had said. Mr. Robertson stated that because of this situation, staff did not want to get too far ahead until they get sane reaction from the HRA as to whether the HRA wished to proceed now that they have a much more sophisticated financial analysis of the type of subsidy this project was going to require. Mr. Larry Commers stated that if the HRA paid $150,000 for site improvements, would they be reducing the overall additional revenue they would commit by $300,000 - 400,000? Mr. Casserly stated that was correct. Mr. Bill Fogerty, Winfield Development Corp., stated he had seen the shortfall, and he knew what the HRA has to go through to deal with that shortfall. He stated they would like to do this project; and if they had some assurance from the HRA to do that, they would work their own numbers and work it at °0% Because of the type of building they would be doing, they could do the internal as well as the improvements. They had no problem with the $150,000 - 175,000. Mr. Meyer asked if the Planning Cam¢mission could be involved in this. Could thW get some input or feecmack from the Planning Commission on these two Proposals? Mr. Larry Cammers stated the HRA has never followed the process of involving the Planning Commission before, but they certainly could do that. Mr. Newman stated before they could go through that process and get any meaningful input from the Planning CMMdssion, the HRA must first provide some Parameters to staff and the develcprs as to what assistance the HRA is willing to provide. Ms. Schnabel stated the HRA has always acted independently of the City or the other commissions. She was not so concerned about getting the Planning -12- fDUsIw & RIDIIJECOpmENr AUnDR1TY MEETIlM, JULY 14, 1988 Caumission involved, but her concern at this point was the fact that the HRA has not faced an issue like this where they are being asked to-put up to one - third of the money into the project. She thought Mr. Casserly was correct in saying this was a whole new thing for the HRA and it was total redevelopment, which the HRA has not really participated in before. She did not know the parameters or standards well enough to feel comfortable with saying what the HRA's investment should be. She felt there were too many unanswered questions that the HRA, philosophically, has not decided, let alone actually making a catmitment like this for this kind of money. Beyond that, how does making that commitment affect the HRA dollar-wise in their total amount of money already pledged to spend on certain projects? The City Council has said the HRA will be funding maintenance, so where is the end to the HRA' s commitment? She just felt there were a lot of things that needed to be detennined that have not been discussed previously. Mr. Ken Bureau, Rosewood Corporation, stated he bas worked with cities around the Twin Cities area, and a good example was Bloomington. Bloomington has always had the philosophy that the main roads coming into the city should have major buildings at the intersections, so people know they are coming into Bloomington. He thought the one thing University Avenue lacked was any definition that people are coming into Fridley. This corner will cost more because of relocation of the road, but then there is more property down the Corridor that will not cost as much to develop. If they are ever going to do anything with University Avenue, the HRA is going to have to start with this end. He could not think of a developer that would go into the middle of the block without something starting at this southern end. Mr. Meyer asked if there was an overall development plan for the City. Mr. Robertson stated the City has a Comprehensive Plan which calls for a camnercial development in this area at this intersection. When they f irst got this indication from the City Council, staff did some schematics alternatives. The low scale alternative was to retain the street and util ties and just develop the parcels about half the size that was split by the frontage road. There was a medium scale alternative which encompassed the assembly and rerouting of the street and utilities; and a more comprehensive scale alternative involved more parcels. Staff reviewed the alternatives with Planning Coummission, City Council, and HRA last winter, and it was the concensus to go with the medium alternative in schematic, so that has been the policy direction up to now. Mr. Casserly stated the HRA has to decide if they are willing to put something into the project aside from the tax increment. They do not have to decide how much, but they have to first make the decision; otherwise, they really do not need to spend any more time on this. He stated this is a redevelopment problem. Both these developers have spent a lot of time, and maybe the HRA would like to see what sane of the developers' other projects are like. Maybe they can select a redeveloper and suggest. that there be an exclusive arrangement with the redeveloper for a period of time, in that the HRA would be willing to use their condemnation authority to get the highest quality project on the site. Also, he thought it would be worthwhile for -13- iDUSIlG & RMErE[DPMU AUnDRITY NEEMM, JULY 141 1988 the City to have someone do a little analysis of what the condemnation of that property will entail. That might help the HRA have a little better handle on what their c mTnitment might be. It might be so far out of line that it is not worth considering. This is always a big prnblen when a body is trying to select a developer based on the quality of the project; and Yet, maybe sane developers are starting with different assumptions. He was suggesting the HRA was going to have to decide if it was worth putting something into the project and whether they were willing to use condemnation, to select a redeveloper and give that redeveloper a period of time to come back with a project, based on the guidelines the HRA has provided. Ms. Schnabel stated this was a real valid suggestion, and she would like to see those figures. She stated she would like to see a prof orma from Winfield Development and sane of these condemnation figures for the next meeting so they can start moving ahead. Mr. Fogerty stated they need same guidelines on what the City participation will be and whether they want Rapid oil in or out of the project, because they could not bring n a bank next to Rapid oil. Mr. Lary Commers stated the level of assistance is going to dictate the type of building they can be put up, the type of tenants they are going to get, and the type of incane they are going to generate. Mr. Rasmussen stated the HRA has to decide philosophically what type of development they want on this corner. Mr. Robertson asked the HRA if they were philosophically comfortable with moving into this whole redevelopment mode and were willing to create a negative tax increment district in order to get this level of development. Mr. Larry Cammers stated he would be agreeable to that concept. Mr. Meyer stated he was in favor of sane deficit financing to develop this corner. He thought Mr. Bureau had made an excellent point that no matter which develcpent is picked, this development can be the "key" to the land that runs to the north, and in a real sense is useful "seed money" to encourage the first line development of the area. That, plus their previous willingness to spend money for other things for the enhancement of the City, means they should agree in principle to be willing to do deficit financing. Mr. Prairie stated they were talking about a real heavy involvement in a small area, and the percentage of money here for development was the highest it has ever been. Mr. Larry Cleaners stated they also have to be very careful about setting a Precedent. Ms. Schrsbel stated she wanted to point out that several years ago when this was originally discussed with the City Council about setting the tone of the City and creating something attractive that tells people this is the -14- H:)US= & RID&VIIDAMU AUPflDRITY Mm y3W, OMY 14, 1988 entrance to Fridley, the initial location was where the Valet Motor lot was. She agreed at that time to that location because that was more visible f ram the freeway. She was not so sure 57th /University had quite the same visibility or necessarily set the tone for the City as the first location does; however, they have also talked a long time about relocating the service road on this particular piece of property. M. Schmbel stated she did have a problem with the dollar amounts that have been discussed at this meeting. If they are just going to talk about a deficit district to create some-impetus for something else to happen along the Corridor, that was one things but she felt she must warn the other members of the HRA that at this point she was not prepared to support the kind of money being discussed. There were too many other develcpments along that whole area that are coming up, and they are going to need to spend money on each one. She realized this area was not going to develop on its own; it will take the HRA to get it going, but not to the extent of the dollar amounts mentioned at this meeting. Mr. Larry Cammers stated he would echo Ms. Schnabel's comments. He bad no opposition to same deficit financing as far as the concept and moving forward, but the level of dollars will have to be a me factor. He was prepared to vote in favor of putting money into a project on the they might not recover all the money. Mr. Newnan made the following suggestions to the HRA: 1. to decide whether or not the HRA is willing to consider some type of deficient financing dependent on the quality of the development; 2. to direct staff to further explore and refine the cost of the acquisition of the parcels; 3. to verify with each developer the commitments they have projected; 4. to review with each developer what their plans and concepts - would be with or without the benef it of condenustion. Mr. Newman asked if the HRA members were comfortable with the above suggestions. Mr. Larry Lammers stated he felt the HRA has said "yes ". Mr. Prairie stated he was reluctant to say "yes" when he did not really know what these meant. Mr. Casserly stated it also gives The Cammers Canpany /Security Development Corporation the benefit in thinking in terms of other terants, if they think that is a possibility. In the meantime, the City can explore the costs of condemnation on this site. The theory behind this is that both developers should be starting with the same assumptions. This bas been the HRA's first experience with this type of activity, and they would like everyone to have the same opportunity. -15- 3. HDUSnG & RIDIIIIIDPNM AinMRITY NMIlG, JULY 14,. 1988 Mr. Larry Commers asked staff to contact Merrill Lynch Realty to check into the listed market values for the properties for sale north of the old Z&ntigo, plus the old Zantigo building. Mr. Casserly stated they would have the information requested by the HRA available for the next meeting. Chairperson Ccmmers declared a 10 minute recess at 10:05 p.m. Chairperson Commers reconvened the meeting at 10:15 p.m. IAL Mr. Canners asked Ms. Schnabel to update the HRA members as far as what happened at the last joint City Council /HRA meeting regarding maintenance of HRA projects. Ms. Schnabel stated the City Council has pretty much told the HRA there will be no funds with which to repair or maintain HRA projects. They are reluctant to raise the mill rate, and they are reluctant to raise taxes. They are in a financial bird themselves aryl feel the projects the HRA has been asked to explore and fund are also projects the HRA would have to take on as an ongoing commitment. The bottom line, on the parking ramp for instance, was the HRA was going to totally fund the building and completion of the parking ramp, and they were prabably also going to be assessed in the future for their sbare of the lighting costs, snow removal, etc. Mr. Prairie stated the City Council had talked primarily about the University Avenue Corridor. Ms. Schnabel stated the City Council wants the HRA to establish a trust fund to be used for maintenance. Mr. Coroners stated this subject should be placed on an agenda as soon as Possible for discussion. The HRA needs to have same estimates on what each of their projects is going to cost in terms of maintenance, and they are going to have to look at those projects they have conuitted to, will have to re- examine future projects. Staff is going to have to work up sane numbers for them. Mr. Robertson stated one of the conclusions that was hinted at the joint HRA /City Council meeting was that there are different types of projects that will have tremendously different percentages of maintenance; for instance, the Corridor which will have a lot of landscaping, a lot of labor intensive work, as opposed to the parking ramp which will probably have very little maintenance. Ms. Schnabel stated a lot of discussion was about the lighting. It was more or-less staff's decision to do the lighting, the Council agreed to the lighting, but now the HRA will have to pay for it. And, the HRA might have to pay for the electricity besides. Insurance on the ramp was another thing -16- fDUSIlG & RED 37ELOM P AMDRITY MEErnG�, JULY 14, 1988 that should be discussed. Mr. Claimers stated it was never the understanding that the HRA would be involved in the operation of projects. Is the HRA going to be assessed for maintenance of the Lake Pointe site? What about capital improvements for the Lake Pointe site? Some number -s are going to have to be put together for the HRA to examine so they can make some decisions. These numbers could be big and might, in fact, impact their ability to do other projects. Ms. Schrabel stated the HRA might not be able to afford to do the 57th Place project because of other expenses caning up on other projects. Ms. Schrabel stated she has always said from the very beginning that there was going to be maintenance on these projects — what was it going to cost and who was going to do it? Always, the assumption was that the City was going to do it. Mr. Commers asked staff to prepare this information for the HRA on a proj ect by -proj ect basis. Mr. Robertson stated he wanted the architect /engineer and the construction manager to be present to present the first cut on what the bids are for the plaza ramp and answer any questions the HRA might bave. Then, he would like the HRA to discuss bow they would like to administer this contract. If they decide to proceed with it, and when they want to make the decision - -at a joint meeting with the City Council on July 25 or defer it to August 11. Mr. Robertson stated the total budget estimate based on the bids was $784,554. That was significantly under the eanrarked budget of $1, 000, 000. He would like to point out two things: (1) Part of the $1,000,000 was a signage allowance, and he believed it was between $15,000 - 20,000. That is not included because in order to expedite the progress, the architects have not yet designed the signage, and that can be added later; (2) It does not include sane repair work and some changes to the plaza area itself. This was originally assumed to be part of the civic center budget. Since the HRA is well under budget, and the plaza repair work will meet the criteria for tax increment f inancing, would the HRA consider including the repairs to the plaza as part of the parking ramp scope of work? Mr. Ron Christenson stated the HRA bad received a copy of a letter addressed to -Mr. Robertson from himself dated July 14, 1988, along with a copy of "Exhibit A, Low Bid Summary - Parking Ramp ". He had the low bidders for the civic center break out their prices for the - parking ramp and these were the numbers. Mr. Meyer questioned Spec Section 05210 for Steel Joists in the amount of $81-900 for the parking ramp. If they do not have any steel joists in the ramp, why was it on the law -bid summary? Also, maybe there should be some -17- HOUSIM & REDEWETAPM TP AUnURMY MEEPIlG, JMY 14, 1988 exploration as to why the erection cost for Structural Metal Framing (Spec Section 05100) was so high at a cost of $15, 000 for perhaps a very small amount of structural steel. Mr. Christenson stated Mr. Meer was correct, and the steel joists should be deleted. He stated they have identified the legitimate low bidders on this particular project, but they still have to go through the qualification process. Mr. Meyer asked what repair work were they talking about for the plaza. Mr. David Kroos of Bcarmn & Associates stated it was primarily the cutting and patching around the building for construction purposes, the relocation of lighting, planting areas, signage, and a lot of shall items all basically for the plaza. Mr. Moyer stated the HRA is being asked to help pay for the repairs to the plaza, but he thought they needed to know a little bit more about the dollars. He was mt opposed to the HRA agreeing to those items, as long as they know what things are caning and that it will be under bid. Ms. Schnabel stated that based on the comments made at the joint City Council /HRA meeting, had there been any redesign of the parking ramp exits? Mr. Kroos stated the exits were discussed, along with the painting of the interior of the ramp, and putting in a sound system. Those items were not incorporated into the design because of a time problem of when the bids were supposed to be in. M. Schnabel stated there was some real concern expressed by the City Council about the access to the laver part of the ramp, its accessibility to the office building, and the legality of using tax increment financing because there was a concern as to whether or not the ramp, in effect, has access only to City Hall and is mt accessible to the office building. As a result of that, there was the concern of whether or not it is a legitimate use of tax increment fimmncing, because then the ramp might not meet the criteria. Mr. Ommers asked who was going to handle the legalities of this issue. Mr. Robertson stated as soon as Mr. Jim O'Meara sent staff the summary of the 1988 legislation, he flagged this question and consulted. Mr. O'Meara. It was shortly before the joint City Council /HRA meeting. He described the project to him and the provisions made for access to both buildings. Mr. O'Meara was acmfortable that this fit the intent of the legislation. At the joint City Council /HRA meeting, questions of the access to the office building were raised. It was his judgement that any details like whether the door opened in or out could be changed without stopping the bidding process for any redesign and still meet the state criteria. There was no problem with this according to Mr. O'Meara, their bond counsel. Mr. Comers stated that if this was true, then Mr. O'Meara should put that -18- fDUSIM & RIDIIJECOPME U PfiMRITY MEEMG, JULY 14, 1988 in writing to give the HRA some comfort. Mr. Robertson stated the City Council was scheduled to take action on awarding all civic center contracts on July 25. At that same time, the HRA could review aryl approve the plans for the construction of the plaza ramp. The HRA members were in agreement with meeting jointly with the City Council on July 25; however, Mr. Prairie and Ms. Schnabel would be unable to attend. Mr. Robertson stated the other issue that the HRA must decide on was how they wished to administer this contract (agenda page 3) . Those options were: - (1) to delegate all authority for contract administration to the City Council; (2) to use the City as an agent to administer the contracts for the architect and construction manager. (The HRA would approve all change orders. This provides the HRA with control over matters that could affect delays and cost overruns.) (3) to administer all contracts --the construction manager and the architect. (This would necessitate more HRA meetings to address the timely resolution of contract matters and could also result in the replication of activities with the City contracts.) NDTIDN by Ms. Schnabel, seconded by Mr. Meyer, to adopt option #2 regarding administration of plaza ramp contract's: "The HRA to use the City as an agent to administer the contracts for the architect and construction manager." UEON A VOICE VOTE, ALL VOTIM AYE, CHAIRPERSON CDMEER.S DECLARED THE MDT ION CARRIED UNANIMOUSLY. 4. CONSIDERATMN OF REDEVELOPMENT PROPOSAL FRDM CHERYL STINSKI: Mr. Robertson stated Ms. Stinski does not have a formal proposal prepared yet. At the July 11th City Council meeting, he had told Ms. Stinski she still had to solve the parking problem with her major tenant. One of Ms. Stinski's options in solving the parking problem was to get a cross easement with the apartment complex to the north. Staff was directed by the City Council to check into the apartment complex's present parking situation and see if the apartment complex had the required number of spaces by Code. Staff had completed that review just that day, and the apartment complex does not meet Code. Thirty -three spaces are required, and there are only 24 spaces. So, this cuts out one of the options for parking and makes Ms. Stinski's problem a little tougher to solve. However, Ms. Stinski did tell the City Council on July 11th that the amount of overflow spaces might not be as great as originally thought maybe fra. 30 to as little as 10-12. Ms. Stinski stated she would like a concensus from. the HRA that they are interested in her project for this area, so she can proceed with the City Council on the rezoning for the entire project. -19- HDUSIlWj & RIDEVELOPMa AurHDRITY MSEPITG, JULtY 14, 1988 Mr. Fcbertson stated the City Council specifically wanted the HRA to know that they are very interested in the project; and they understand that the HRA is waiting for the rezoning before the HRA can take any action. If the parking situation can be solved, the City Council will take action on the rezoning. Mr. Commers stated the HRA was very interested in getting that boarded up mouse removed from the property. The HRA was definitely willing to look at this project as they are for -any other projects and see what kind of assistance they can give, but they cannot make any decisions until they see a formal proposal. The way the HRA has handled this in the past is that the developer is asked to come in with a proposal, review the proposal with staff, and then staff makes a recarmendation to the HRA. 5. CIDNLSIDERATIDN OF S.E.H. CHAME ORDER FOR RICE CREEK laAD IMPRXEMEWS: 6. MJTIDN by Mr. Prairie, seconded by Mr. Meyer, to approve a change order to S.E.H. for the Rice Creek Road improvements in the amount of $3,000. UPON A VOICE VOTE, ALL VOTIW AYE, CF]AIRPERSON 0DH4ERS DECLARED THE NDTION CARRIED UNAND DUSLY. r0en FIZIA MDTIDN by Mr. Meyer, seconded by Ms. Schrabel, to approve Change Order #5 for Landscaping, Irrigation, and Lighting Project #168 to Minnesota Valley Landscaping, Inc., for the Lake Pointe site in the amount of $7,285.20. URDN A VOICE VOTE, ALL VOTMG AYE, CHAIRPERSON 0Db2VM DECLARED THE MDTIDN CARRIED UNANDDUSLY. 7. CLA3NS: MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the check register as submitted. UEON A VOICE VOTE, ALL VOTIlG AYE, CHAIRPERSON CDMdERS DECLARED THE NDTIDN CARRIED UNANIMUSLY. 8. OTHER BUSINESS: Ms. Burt stated the HRA members had received copies of the anrm3al financial statement. She would recommend the HRA members review it and present any questions-to staff at the August meeting. It could be put on the agenda. Mr. Ommers stated he would also like the HRA to discuss the general ledger at- the next meeting. Chairperson C=mers declared the July 14, 1988, Housing & Redevelopment -20- HJUSIlW. & FmEVEC HgW AUrWRTrY NETIlW., JULY 14, 1988 Authority meeting adjourned. at 11:16 p.m. Respectfully submitted, p L44--c jaA,�� Icy Saba Recording Secretary -21- FRIDLEY PLAZA ASSOCIATES A LIMITED PARTNERSHIP August 4, 1988 Chairman Lawrence Commers and Members of the Housing & Redevelopment Authority City of Fridley Civic Center 6431 University Ave. Northeast Fridley, Minnesota 55432 c/o Mr. John Robertson, Executive Director, HRA Re: Progress Report Fridley Plaza Apartments Fridley, Minnesota Gentlepersons: 1 We have delivered the commitment from Centennial Mortgage, Inc. to your Staff through David Newman at 4:00 P.M. Monday, August 1, 1988. We have been actively pursuing the other elements of the financing package which include the additional cash equity required, the required letters of credit, and the market rate interest buy -down. We expect to be able to provide at closing all of these requirements and we will report their status to you on August 11, 1988. At our meeting with Jock Robertson, David Newman and Jim Casserly on August 2, 1988, we were instructed by David Newman to put into writing our requests to the Housing & Redevelopment Authority of the City of Fridley of their participation in Phase I of the Fridley Plaza Project. We hereby request of the City of Fridley and /or HRA: 1. The HRA commit to and acquire the land for Phase I and convey same to the Fridley Plaza Associates Limited Partnership by October 1, 1988. 2. The City and /or HRA build access roads in the locations shown by Architectural- Engineering Drawings and maintain same as public streets and no special assessments be made. 343 East Kellogg 81vd.,­. a st. peul, minnesots 55101 612 -224 -4765 IA HRA; City of Fridley August 4, 1988 Page Two 3. The City and /or HRA agrees to provide all offsite utilities to serve the project at no cost or special assessments. 4. Tax payments will be for the project in an amount not to exceed $900.00 per unit when fully accessed and increased by no more than 3% per annum for the first five years. H 5. The HRA agrees to return the $200,000.00 Letter of Credit upon evidence to the HRA that the commitment has been modified and duly accepted. 6. That the HRA instruct the staff and counsel to commence the preparation of the Development Agreement with Louis R. Lundgren and the Fridley Plaza Associates Limited Partnership which will include terms and conditions for property acquisition of the subsequent phases of the project. 7. We request the HRA waive any conditions requiring a second mortgage in the Development Agreement. 8. We request the HRA to approve the Centennial Mortgage, Inc. commitment as satisfactory to them and agree to accept such modifications as may be required to allow the commitment to be funded. 9. In the new agreement to extend the time required and insert dates required by the commitment, such as; Start of construc- tion October 15, 1988; Completion of construction April 15, 1990. In addition to the foregoing points, we would ask the HRA to consider providing interest subsidy to help buy down the market rate that would make the project more financially viable. Furthermore, we ask the the City and /or HRA consider floating a taxable revenue bond to be repaid solely from the project revenues. WV'A , Lye- On our next meeting with you we will give you an additional report. Very truly yours, FRI EY PLAZA ASSOCIATES Louis R. Lundgren, FA Managing General Partner LRL.rz cc: R. Silverman Dorsey & Whitney 15�, H CI� & NEWMAN PA. 1 B E� ATTORNEYS AT LAW July 21, 1988 Virgil C. Herrick David P. Newman James D. Hoeft Gregg V. Herrick Jock Robertson City of Fridley 6431 University Avenue Fridley, MN 55432 RE: Lundgren d Dear Jock: As you know, on July 20, 1988, Jim Casserly and I met with Lou Lundgren, Russ Jacobson, Kevin Jensen, and Jim Druck (attorney for Springfield Bank). In very brief summary Lou indicated that currently even with the participating mortgage, he cannot obtain sufficient financing to cover the total project. Consequently, he has proposed that the HRA issue to him a FHA Guaranteed Mortgage with interest at the rate of seven percent (7 %) in addition to the land write down we proposed. In consideration for this mortgage we would have a participating interest in the Project. This interest would need to be negotiated but would consider the following items: 1. In the event that the HRA needs to sell bonds in order to provide this financing, then the difference between the interest rate that the bonds are being sold for and the rate at which the money is being borrowed to Lou (i.e. three percent (3 %)) would be treated as contingent interest. That is, to the extent the Project generates additional revenue so as to support this higher interest rate then the HRA would be paid for its full interest cost. However, in any event since the mortgage is FHA insured,;the 7% interest rate would be guaranteed. 2. The HRA would receive a percentage of the net profits upon the sale of the property. 3. The HRA would receive a percentage of any net income from the Project. Both Jim and I expressed in very clear terms our disappoint- ment in this proposal and our belief that in the current political climate and with our current deadlines that we were extremely doubtful that either the City Council or the BRA would approve Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612- 571 -3850 1C Jock Robertson July 21, 1988 Page Two this proposal. We indicated to Mr. Lundgren that we thought it was necessary for him to meet further with his advisors and to come back with a different proposal in order for him to have any serious hope that the HRA would authorize a further extension to his Letter of Credit. We have scheduled two meetings with Mr. Lundgren. One meeting for Tuesday, August 2, 1988 and a second meeting for Thursday, August 4, 1988. Both meetings will be at 9:00 A.M. and will occur in my office. Mr. Lundgren has promised us that he will provide us with some further information next week so that we can review it and be prepared to provide him with a response at the August 2nd meeting. The purpose of the August 4th meeting will be then to further respond and react so that an update can be prepared for inclusion in the HRA agenda on August 5, 1988. Because of the importance of Mr. Lu; suggested to him that he or a member of a written proposal for inclusion in the cated a willingness to do this. I have that along with his proposal we will be the staff. adgren's proposal I his staff should prepare HRA agenda. He has indi- also explained to him including comments from Finally, I indicated to both Mr. Lundgren and Mr. Jensen the need for my office to receive the extension to the Letter of Credit by July 26, 1988. Mr. Jensen indicated that he would be preparing this document. I also advised Mr. Lundgren that both you and I will be out of town on July 28 and 29 and that I will be on vacation the week of August 5, 1988. incerely yours, avi P. Newman DPN:jeb cc: Nasim Qureshi - James Hill James Casserly Lou Lundgren P.S. I am sure that Mr. Lundgren will take exception to the very brief and simple description which I have provided to his proposal. I know that Mr. Lundgren would like to meet with you for the opportunity,to present this idea in more detail. However, I believe this gives you sufficient information in order to obtain a sense of what is being proposed. V4 oiu :1frTU r 7 -tD A r=6— 1 s 00, 77 • ;a T A T a TSWOOK No@ •O. 0f (UNIVBNSITY A v a It u a 1, Nm mm ear M"4 I&OMF&axm • VIM" mraftmm mine ft aim w In d l• .,i a V c d l• .,i a H ERRICK & NIEWMAN PA. W ATTORNEYS AT LAW August 51 1988 Virgil C. Herrick David P. Newman James D. Hoeft Gregg V. Herrick Jock Robertson City of Fridley 6431 University Avenue-N.E. Fridley, MN 55432 RE: Lou Lundgren Dear Jock: I am writing for the purpose of summarizing for you certain events which have transpired on the above Project since the last meeting of the Fridley HRA. As you are aware, Jim Casserly and I met with Mr. Lundgren and his representatives on July 20, 1988. On July 21, 1988 I sent to you a letter which outlined the substance of those discussions. In the meeting of July 20, 1988 as well as in the letter of July 21, 1988 (a copy of which was provided to Lou Lundgren) I made it very clear that I did not believe the then current proposal would be acceptable to the HRA. I further indicated on both occasions that time was running out and it was imperative for Mr. Lundgren to present to the staff a financing plan which would demonstrate Mr. Lundgren's ability to finance one hundred percent (100 %) of the cost of the Project. IE On August 1, 1988 I received from Mr. Lundgren a copy of his mortgage commitment from Centennial Mortgage. On the following day, August 2, 1988, you, Jim Casserly and I met with Mr. Lundgren and his daughter Cherry. This commitment was for the amount $7,922,700.00 and further required an interest rate subsidy. While this mortgage commitment included numerous qualifications and conditions, most of them are not unusual. However, you may want to review pages 26 and 27 which impose numerous special conditions upon the City. While I do not have a difficulty with the majority of these conditions, I would direct your attention to the conditions contained in paragraph 4 of page 26. This particular condition does cause me a great deal of concern and reservation. Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612- 571 -3850 IF Jock Robertson August 5, 1988 Page Two During our meeting of August 2, 1988 Mr. Lundgren indicated that among many other things he would need the following three items of financial assistance: 1. A Letter of Credit for $700,000.00; 2. Additional financing in the approximate amount of $2,300,000.00; 3. Interest write down of 2 1/4% on a loan of $7,922,700.00. I hasten to add that Mr. Lundgren is not necessarily looking to the HRA to provide all of the above three items. However, at the time of our August 2, 1988 meeting he did not have in place a source to provide any of these three items and was certainly receptive and hopeful that the HRA would assist him in one or all of the above three items. Consistent with our original schedule and with the renewed request of Mr. Lundgren we scheduled a subsequent meeting with him for August 4, 1988. At that meeting Mr. Lundgren presented to you a letter which we have agreed he can present to the Housing and Redevelopment Authority. In that meeting he verbally indicated that he was continuing to seek outside sources which will provide him with the additional financing referenced above. while we are certainly hopeful that Mr. Lundgren will be able to complete this process before the next meeting, with the current time limitations I am doubtful that it will occur. ® Based on the fact that there continue to be significant gaps in the financing package that Mr. Lundgren has arranged, it is my recommendation that the HRA terminate all further discussions with Mr. Lundgren and to take action on his Letter of Credit. I -would like to point out that the mortgage commitment made by Centennial Mortgage is not substantially different than the financing packages which were reviewed with Mr. Lundgren earlier this year. In all candor, the package which we reviewed on August 2, 1988 is not significantly different from what we have reviewed on several earlier occasions nor is it significantly different from the proposal which was presented by Puller Mortgage in late 1986. As you know, when you and I talked to Centennial Mortgage earlier this year, they verbally gave us assurances that they felt confident that they could provide a financing package for the Project. They further indicated that if the Project was not strong enough to support 100% financing on its own, that they could arrange a participating mortgage which would provide for 100% of the financing. This was not done. I am not sure if the disparity between the verbal assurances and the written commit- ment is due to the fact that originally Centennial Mortgage IG Jock Robertson August 5, 1988 Page Three lacked complete understanding of the Project or if it is due to the fact that they have since modified their position. While I am certainly sympathetic with Mr. Lundgren I believe that there has not been any significant progress in providing the financing package necessary. Regrettably, under the circumstances it is my recommendation that the HRA cease further negotiations with Mr. Lundgren and to act upon his Letter of Credit. Sincerelyn yours, I1 aviJdP cc: Louis Lundgren OUSING and REDEVELOPMENT AUTHORITY .2 COMMISSION MEMBERS:. LAWRENCE COMMERS, CHAIRMAN DUANE PRAIRIE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY ZO: Housing & Redevelagrnent Authority Members FWM: Jock Robertson, Executive Director to HRA DATE: August 5, 1988 RMA IK;: 57th Place Redevelopment Proposal As we go to press, we are waiting for a copy of a written and firm ccRmitment f rom a bank f or leasing a portion of the Winf ield proposal . The price 1 i st for the Zantigo building and adjacent lots is listed below: Zekntigo building and land (21,752 sq.ft.) . . . $225,000 13 vacant lots mrth of Zgntigo . . . . . . . . 175,000 (=$2.48 /sq.ft. ) Taco Bell Industries stated that the Z (antigo building is for sale only and they are mt considering a lease situation. Merrill Lynch currently has a buyer for the 13 vacant lots at a purchase price of $130,000. The deal will either be rejected or finalized by Monday, August 8, 1988. If the deal is rejected by the owner, the property will be placed with multiple listings for $140,000 (= $1/98 /sq. f t.) . It should be mted that Rocky Rococco paid $4.28 /sq. ft. and Pro Bass Shop paid $5.00 /sq. ft. on U.S. 65; Orthopedic Surgeons paid $2.64 /sqi, ft. for the south side and $3.00 /sq. ft. for the mrth side "as is" at University Ave. and 83rd Avenue. We will have the acquisition and relocation estimates from Jack Bagley with . Federal /State Relocation Consultants at the meeting and an analysis prepared by Jim Casserly of the two development proposals. JR:Ls 1+88 -197 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. MI 2) 571 -3450 FRIDLEY, MN 55432 EXT. 117 HERRICK & NEWMA N P.A. ATTORNEYS AT LAW July 28, 1988 Virgil C. Herrick David P. Newman James D. Hoeft Gregg V. Herrick William Fogerty Winfield Developments Inc. 3300 Edinborough Way Suite 316 Edina, MN 55435 RE: Fridley ERA /57th Avenue Dear Mr. Fogerty: I am writing for the purpose of reminding you of certain conversations which we had at the last Fridley HRA meeting of July 14, 1988. At that meeting you advised the Fridley HRA that you had a written and firm commitment from a Bank for leasing a portion of your proposed project on the above site. At the conclusion of this meeting you informed me that you would in fact provide me with a copy of this commitment for my review on Monday, July 18, 1988. At that time I advised you that this commitment would be confidential and that I would be the only one reviewing it on behalf of the HRA. I further advised you that the terms of the commitment as well as the identity of the proposed tenant would not be disclosed to anybody. To date I have not received that commitment from you. Unless it is provided to me I will be obligated to advise the Housing Authority that in fact you have failed to provide this commitment for my review. Sincerely yours, David P. Newman DPN:jeb cc: Jock Robertson Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612 -571 -3850 2 -A OUSING and REDEVELOPMENT AUTHORITY J COMMISSION MEMBERS: - LAWRENCECOMMERS,CHAIRMAN DUANE PRAIRIE VRGWIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY M: Housing & Redevelogmnt Authority Members FMM: Jock Robertson, Emcutive Director for HRA DATE: August 5, 1988 RMARDIlG: Proposed HRA Parking Ramp Enclosed you will find two letters I have received from Jim O'Meara dated July 25 and August 5, 1988, regarding some questions about the HRA using tax increment funds for the construction of the Civic Center parking ramp. You will note that Mr. O'Meara has provided us with nearly five pages of thoughtful legal discussion in attempting to answer these questions. After reviewing both of the letters with David Neuman, we believe the following is an accurate summary of Mr. O' Mea ra' s opinions: 1. Does the HRA have the basic legal authority to construct this parking ramp? Yes. 2. Can the HRA pay for these expenses out of tax increment? Yes. 3. Can these expenses be firanced through the issuance cf a tax exempt tax increment bond? Yes. While Mr. O'Meara's answer to this third question is more volunimous, you will note that in the last sentence of his August 5 letter, he states: "however, those prior bonds have significantly more lenient restrictions in the several areas I mentioned in my prior letter, and we feel hopeful that that can be done without any problems." We recognize that we will need to continue to work with Mr. O'Meara to ensure we do, in fact, conform with the appropriate bonding requirements. However, we are also confident that we have now received the necessary written opinions in order to ensure that this project can proceed as originally planned. JR:ls *-88 -195 cc: David Newnan F ECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. 012) 571 -3450 FRIDLEY, MN 55432 EXT. 117 MATTHEW J. LaVTTT JOHN B. VAN Ha Noara, JR. LAW OFFICES ROBERT E. WOODS CoLa OEHLER RICHARD G. MAas WILLIAM J. JOeNIS ROBERT M. BOWER ANDREW C. SELDEN p B 1? I G G S AND M O R G A N Meao&asT S SAVAGE JOHN K. ELLINGaoE ROBERT G. SHARE Awmww C. BacHER BRUN G. BELISLE BURY L SWANSON M.J GALvix, JR. JEFFREY J. REYES JAMES L NELSON PROFESSIONAL ASSOCIATION TONY STaI®KHoEa DAVID C. FoasBEaO JEROME A.Gazs MART E. SCH&TMER MICHAEL H. STBEATER JOHN J. McNEELT STEVE d BRAND JOHN MCNETL V. SEYMOOE.in. JERRY F. R°TxAN JOEL H. Gmzx®UR KARIN L W„•. 2200. FIRST NATIONAL SANK BUILDING R A ANDERSON RICHARD D. ANOSasoN TEeBVcE N. DoYLE ALAN H. MACLO SALLY A. SCO[anN DAVID C. M O RICHARD H. KYLE JEFFREY P. SHAW SAINT PAUL, MINNESOTA 66101 OOTY BRUCE W. MooTY JOHN L DEVNEr MATTHEW L LEvrrr ANDREW R. KtNTmoza RONALD L SosENBOR DAVID G. GBeENZao FREDERICK P. ANGST PETER H. SEER DAVID B. Set® ROBERT L. LEE SAMUEL L BANK= JOSEPH P. NOAcK TELEPHONE 1612) 281-12M ARE RONALD E.ORcHARD CHARLES R.RAYNOR GREGORY GaKOOaY J. Sr>nvNttoa JOHN TROTEa STEPHEN Wnnncx ANDREA M. BOND TIMOTHY P. FLAHERTY TELECOPIER (912) 222 -4071 Ca&wzs B.Roazas AvaoN L GORDON MARTIN H. FISH K&ui3 L SI. L MANY JOHN R. KE ffzr= ROBERT J. PR&TrE Meat M. ES= TaoMes A.LARSON JOHN BOLTER& 39 K GAara PATarz M.GARRT DAVID J. SPENCER JAMES G. RAT TIMOTHY DANIEL J. COLE. Ja. RICHARD H. MARTIN INC:LIIDINO THE FORMER FIRM OF CHERYL d TRoMes A. HOM DOUGLAS L SNOB I)RUDY J. Heue KEVIN dBEao MICHAEL H.JEaoaIMUe MARY LIPPEL LEVITT, PALMER, BO`PEN, ROTMAN & SHARE McBa SCRWZDZB R.SCOTT DAVIES JAMES A. VosE M BRIDm UO Mc DONN GUGH DELIVERY VIA MESSENGER Jock Robertson City of Fridley 6431 University Avenue N.E. Fridley, Minnesota 55432 Re: Parking Ramp Agreement Dear Jock: 3-A MICHAEL J. GBlxas MARIAN M. DmanN CHRISTOPHER C.CLEVZLMM NANCY D. Aaxtsm MICHAEL J. McELUsmw LAUREN A.FITHIAN PAUL S.JACOBSEN COLLEEN V. SHORT DIANA J. VANcE -BRYAN NEAL T. BUETHE SUSAN B. THOMAS TIMOTHY J. KEENAN ROBERT L.SrKSUP MICHAEL THOMAS MIUH CARIOS R. CARIusOUILID KRISTIN S. MELBY ELENA L OsTBY KEVIN J. RINIEKR RUTH J. Min" VINCENT A. THOMAS MARK J. FRENE NANCY J. WOLF DENNIS L HALL AxDBEA M.MACHMaIEa PATRIca T. SHELLY DIANE H. LITTLE OF COUNSEL J. NEIL MORTON RICHARD E.KvLE JOHN M.PALMSB SAMUEL H. MORGAN FR&NK N.GaeRSx A.LAURENcE DAVIS CLARENCE G. FRANK FRANK B-OND LEONARD J. KEYES JOHN M. SULLIVAN Enclosed are two resolutions, one for consideration by the City Council at its meeting next Monday and the other for consideration by the HRA Board at its meeting next Thursday. These concern the parking ramp agreement which the City and the HRA have apparently reached. As I understand the concept at this point, the ramp is being included in that contract in part for efficiency and cost reasons, but that the HRA clearly envisions that as an activity undertaken by it under its redevelopment plan and paid for by available HRA revenues. It also appears now that the concept is that the HRA's cost under this program would be funded at least in part from excess proceeds of the 1985 tax increment bond issue. I would refer you to my prior letter concerning some of the concerns which would need to be satisfied before that could be done without affecting the tax exempt status of those prior bonds. However, those prior bonds have significantly more lenient restrictions in several of the areas I mentioned in my prior letter, and we feel hopeful that that can be done without any problem. Ver r y yours, mes P. O'Meara JPO : cf Enclosures 2270 MN WORLD TRADE CENTER 2200 FIRST NATIONAL BANK BUILDING 2400 IDS CENTER SAINT PAUL, MINNESOTA 5MO1 SAINT PAUI, MINNESOTA 66101 MINNEAPOLIS, xnam3OTA 66402 (012) 281-1216 (M2) 281 -1216 (6121339 - 0601 3-B MAT=cw J. Lwvm JOHN B. VAN as Noss, JR. ]LAW OFFICES RONEaT E. WOODS WEL„AH J. JOANIS MICHAEL J. GRDNEs McHAN M. DuNSM COLE OEH.ER Roacar M.BOWEr R1CHS" G. MASS ANDREW G SLIDEN BRIGGS AND M O R G A N MARGARET R SAVAGE JOHN H. EUnNOSOE CHEsTopmB C.CLEvn"D NANcr D. Awnsox ROBERT G. SHAM ANDREW C. BzcnzB JErrSET J. HETES Ba1AN G. Bzuwx MErRAE, J. McELUSraEr Bosr L SWANsm M.J. GALVDN, is. JAxEe E. NESOa PROFESSIONAL ASSOCIATION TORT STr.KNMZR LOS NN ER A.Frrm& DArm C.FORSBERG JNRoxz A.Gns Meer L S STRESS H. H. Ssmox H PALL S JACOSSir GoU.EE V. JOHN J. MCNEEII STEVE d BRAND MCNNIL V SErxomJR. JOE. B. Go7TESxAN Joew JOHN H. D. ANDERSON RE A ANDEtsoN J. CE-B NE AL J. VANCa•HaTe1N Nv.. Z JERRY E RarxAa HASO L W= 2200 FIRST NATIONAL. HANG: ]WILDING AH SAUT d Sc000 TnoxE SCSAN B. THGx Tz=xcz X. DoTLE ALAN H. MAC= A Deem C. McDOT N T J HEENAN Ibma D E. RTLE inwrT F. SHAW SAINT PAUL, MINNESOTA 66101 BRDCE W ROBERT L P RORER JOHN L Davim MATTHEW L LEvnr H. Rurr ota ANDREW R MICHAEL somA RONALD L Soawsm DAvm G. GaEEa1NO ANOSr a Alms - CABRA OGILLO GaLOS R. Gsaesptrnao PErte H. SEED DAVID B. SAND ROBERT L. E ROBERT XzLw SANVZLLHANSGS JOSEPHP.NOACE TELEPHONE (612) 291 -1216 TLEE ARE DENANS Tw EEENA L RONALD E.OacaAaa CHAR IER L HATNDH GaEOOar J. STENxOE GREGORY T Hnax HE�vDN J. HI! IEEB JOHN TROTHS ST EN WDNN1cz ANDREA M. BOND ilxorsr P. FL&zz T TELECOPIER (MS) 222-4071 CHAH,e. B.ROGERS SE TERRY L 18 RErTn J. RELxAN VENCENT A. THONAH AvaoN L GORDON FIBS Mes mN H. F:sa MAUREEN L WARREN MASS J. FBzxz JoaN B. HENDON BARTER J. MART M. GARR NANCY J. TROxAs A.IAH5CN JOHN B=MMA E K GAIM Ha ANDREA L.MA DAVID J. SPENCER JAxzs G. RAT TExa L McHC TIMOT ANDREA M. MAGHxElEH MR= J. C UZ, JS. RECSASD H. MLETxR INCLUDING T8E FORMER FIRM OF CHERYL d THOxAS ys. . T. DormLs L SNOB MICHAEL H.JESONExcS TEMT J. HA" A MART LIPPn. LEVITT, PALMER, EOWEN, $OTMAN & S$ARE HETDN dBEaG M.B ScaeoEDEB rrLz DEANL B LETTIE DuNz B R.ScarT DAvues JAxES A.VOSE M. BHOm McDoaoDOS or COUNSEL J. PATHcE McDAvnT ROD= L HANszv July 25, 19 8 8 J. NEL MORTON J. NZL MCHAHD E. RTLE JOHN M.PAI Et SAxvEL S MORGAN FRANK N.GSAHAx A.LAVRENCE DAVIS ' CLARESCE G. FRANE FRANE H—OND DELIVERY VIA MESSENGER JOBS M. SM. Samantha Orduno City of Fridley Civic Center 6431 University Avenue NE Fridley, Minnesota 55432 Re: Proposed HRA Parking Ramp Dear Samatha: I am writing to you and to the HRA in response to your letter to me of July 20, 1988, on this issue. I have also conferred briefly with the HRA's attorney, David Newman, particularly on the question of the arrangements for the 166 parking spaces which the HRA has previously agreed to provide to the Fridley Plaza office building. I've also discussed the question with Brian Belisle of our office who is far more expert than I on the tax exempt bonding issues involved. Jock and I discussed this project several weeks ago on the question of separating the construction contract costs between the Civic Center improvements and the parking ramp. It is my understanding from those discussions that the HRA has for some time believed that parking ramp improvements were needed in the Center City area to alleviate parking shortages and that it has been the intention of the HRA to finance the associated costs from available tax increment revenues, on a tax exempt basis if possible. I see three general issues here. First, does the HRA have the basic legal authority to construct this parking ramp? Second, can the HRA pay for these expenses out of tax increment? Third, can those expenses be financed through the issuance of a tax exempt tax increment bond? 2070 MN WORLD TRADE CENTER 2200 FIRST NATIONAL BANE BVILDIN7O 8400 I D S CENTER SAINT PAUL, MINNESOTA 6m01 SAINT PAUJ6 MINNESOTA 68101 MINNEAPOLIS, MINNESOTA 68402 (m9) 991.1216 (618) SM-105 (618) 339 -0661 3-C BRIGGS aivn MORGAN Samantha Orduno Page Two July 25, 1988 On the question of the HRA's basic legal authority, I believe that it is authorized in appropriate circumstances to provide the ramp. Normally, this would be done through an appropriate amendment of the HRA's redevelopment plan for this area, upon findings by the Board that the ramp is necessary to further the various goals of the HRA for the development and redevelopment of the City and the particular area involved, to address the parking shortages which have arisen through the expansion of the area (where a number of the projects I believe have been HRA. and /or City assisted), and whatever other findings the HRA believes are correct in regard to the need for this ramp. The question about whether the HRA can use tax increment funds to finance the ramp costs depends again on appropriate amendments having been made to the existing tax increment financing plans. These amendments would basically describe these new costs, as set out in the revised budget for the redevelopment plan. The amendment process for tax increment districts, of course, takes a minimum of 30 to 60 days to complete. Assuming the two issues mentioned above have been taken care of, the question then becomes whether the ramp costs could be bonded for on a tax exempt basis. I assume here the facts that you stated in your letter in regard to the use and availability of this ramp. I understand that the ramp would be entirely open to the public, that no parking fees would be charged f or the use of the ramp, and that no person or entity would have any reserved spaces, except that there would be some short term parking spaces reserved in various areas of the ramp. The item which greatly complicates this analysis is the apparently contractual obligation that the HRA has to the Fridley Plaza office building that no less than 166 parking spaces be provided on an ongoing basis in that general area. I realize this is a non - exclusive arrangement, but we believe that it nonetheless raises the issue of whether the parking ramp is being used in the private trade or business of the office building and whether the $800.00 monthly payments under the lease which the HRA has with the office building would 3-D BRIGGS sxD MORGAN Samantha Orduno Page Three July 25, 1988 constitute indirect private security for the proposed bond issue. If both of those conditions are met, subject to a percentage threshold which I will discuss below, then the bond issue could be considered a private activity bond whose interest would be generally subject to federal income taxation. Let me say at this point that the resolution of this question is going to depend on a number of facts, including the terms of any development agreement or lease between the HRA and the office building, the number of surface parking spaces that will be retained, and the amount of the bond issue which would be necessary to finance the ramp costs. On the basis of the information we have at this point, we are not able to determine whether or not the bond issue would be tax exempt, but we do believe there are a number of promising avenues we could explore which might lead us to that conclusion. In very general terms, the bonds would be "private activity bonds" and most likely taxable (1) if more than 10% of the proceeds are used for a private business use and (2) if more than 10% of the debt service on the bonds is directly or indirectly secured or paid from private payments. We believe on a preliminary basis that the private use criterion would be met because of the 166 parking space agreement which currently exists and apparently will continue. The satisfaction of the second condition depends on whether or not we can stay below that 10% limit mentioned above. We can satisfy the first condition and fail the second one and still potentially have tax exempt bonds, and that is the area which we would like to focus on to help find a way to do this financing on a tax exempt basis, if possible. In that analysis, we would look at such things as the ratio of the surface parking spaces retained to the overall parking spaces in the area (after completion of the ramp), possible allocations of the $800.00 monthly payments to other than the ramp, possible allocations of those payments for such things as ongoing maintenance and operation costs, and the terms of the existing lease or development agreement and any proposed amendments to them. We believe there are a number of good possibilities that this information will inidcate that the financing could qualify as tax exempt. BRIGGS axa MORGAN Samantha Orduno Page Four July 25, 1988 I understand that on July 25 the City and the HRA will be receiving bids for the ramp construction and the Civic Center improvements and that the tax increment plans and the redevelopment plan may not currently contain sufficient references to the ramp and its related costs. I recommend at a minimum that the HRA confirm by resolution its present intention and hope that the ramp costs be financed through available tax increments, and if possible on a'.tax exempt basis, if that step is not already been taken. er truly y urs, 6 mes P. O'Meara JPO : cf cc: N�sim Qureshi ,clock Robertson Rick Pribyl 3-E 3-F RESOLUTION NO. IT IS HEREBY RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority (the "HRA ") in and for the City of Fridley, Minnesota (the "City "), as follows: 1. Recitals. (a) The HRA has adopted its Redevelopment Plan for its master Housing and Redevelopment Project. (b) Pursuant to the Redevelopment Plan, including particularly within the Center City area, the HRA has undertaken assistance to a variety of development and redevelopment projects. (c) The Redevelopment Plan, and various projects already completed within the Center City area, envision the need for parking improvements in order to provide adequate public parking availability for completed and proposed projects in the area. (d) The provision of adequate parking, consistent with sound land use principles, is an objective of the Redevelopment Plan. (e) The City and the HRA have had discussions and have reached agreement upon a plan for the provision of sufficient parking in the Center City area. This agreement involves the HRA participation in the construction of a parking ramp in this area, which, for cost efficiency and other reasons, would be done in conjunction with improvements to be made to the Civic Center. (f) The estimated costs of the parking ramp to the HRA under this arrangement would be approximately 2. Findings. The Board finds that the construction of this parking ramp would be consistent with the Redevelopment Plan and in furtherance of the objectives thereunder and that the parking ramp is necessary to provide needed additional public parking in the Center City area. 3. Agreement Concernina Construction and Financing of Ramp. The Board hereby agrees with the City that the ramp should be constructed as proposed and that the HRA shall, in furtherance of the objectives under its Redevelopment Plan, contribute the necessary financing for the ramp as constituting the HRA's public 3-G redevelopment costs within its master redevelopment project area. The HRA shall finance such costs through the use of available tax increment, including, without limitation, excess and available proceeds of the tax increment bonds which were sold for the benefit of the HRA in December of 1985. Such excess proceeds shall involve funding under that bond issue for projects contemplated in 1985 which have, for a variety of reasons, not materialized to date; provided, however, that such proceeds shall not be used for this purpose if the effect would be to render the interest on that bond issue to become taxable under federal or state law. Adopted by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, this 11th day of August, 1988. Chairman of the Board of Commissioners Executive Director CV= OUSING and REDEVELOPMENT AUTHORITY 4 COMMISSION MEMBERS: LAWRENCE COMMERS, CHAIRMAN DUANE PRARE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY M: Housing & Redevelopment Authority Manbers EMM: Jock Robertson, Executive Director of HRA DATE: August 5, 1988 RMA1DIl�: Consideration of Bids for Construction of Plaza Parking Ramp Staff has reviewed the bids on the plans and specifications prepared by Boannan & Associates Architects with both the architects and construction managers. A package of bid reco menc3ations has been forwarded to the City Council. Boannan & Associates has recmwended the attached bid package be awarded for the construction of the Fridley Plaza parking ramp. Consistent with HRA action last month to designate the City Council as their agent, I recommend that the HRA authorize the City Council to award bids for the construction of the Fridley Plaza ramp in an amount not to exceed $840,000, if the City Council decides to proceed with the Civic Center remodeling and expansion. JR-.ls M-88 -196 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (6 12) 671 -3450 FRIDLEY, MN 55432 EXT. 117 4-A FRIDLEY P M9 RAMP BUDGET/BIDS 1988 Section Description Contractor Amount 02110 Siteclearimj Gamimn Bros. $ 02200 Earthwork o if 40,135 02513 Asphalt concrete paving Budget 30,000 03000 Concrete (inc. 02514) — 424,461 03410 Precast concrete Moline Cont. 1,450 03450 Arch. precast conc. — 28,230 05100 Struc. metal framing — 05500 Metal fabrications — 23,491 05600 Steel erection — 8,900 07900 Joint sealers Right of-nlay Caulking 2 190 Ramp sealant - Expansion joints 09900 Painting 15000 Mechanical 15550 Fire protection 16000 Electrical - Fire extinguishers - Plaza sitework - Landscaping - Sigrage - Waterproofing - General expense - Cbnst. Management fees - Contingency Total Construction Costs Arch. Fees Grand Total Right of -Way Caulking Division 7 Guilliame IKI Mech. National Fireprot. Gephart Electric Nardihi Allowance Allowance Kre ter David BCC IT 14,780 9,200 1,970 14,425 4,700 27,000 409 39,500 35,000 15,000 2,880 38,378 17,160 15,000 $794,259 44,430 $838,689 irgil C. Herrick avid P. Newman rues D. Hoeft regg V. Herrick HER RICK & N EIVIALU ° PA. 5 ATTORNEYS AT LAW August 2, 1988 Jock Robertson City of Fridley 6431 University Avenue N.E. Fridley, MN 55432 RE: Fridley Plaza Office Building Dear Jock: I have previously forwarded onto you for review the Amendment to Leasehold Agreement between the Fridley Plaza Office Building Partnership and the Fridley HRA for the office building parking lot. Enclosed herein you will find an Addendum to the proposed Lease for the office building between the Landlord and the City of Fridley. Because this Lease is conditioned upon the City awarding contracts for the City Hall remodeling project on or before October 1, 1988, I now recommend that both of these Leases be executed. You should then forward them onto Leonard Juster so that he can initial all of the changes, execute the Addendum and return to you one fully executed copy of both Agreements. In addition, we have been approached by the owners of the building about the issue of subordinating the HRA's second mortgage in the amount of $39,999.00 to the first mortgage which the buyer of the building will be taking out. Currently, there is a first mortgage in the original principal amount of . $1,500,000.00 to which the HRA's second mortgage is subordinated. Both Mr. Qureshi and I would recommend to the HRA that they agree to this subordination providing that the principal amount of the new mortgage does not exceed $1,300,000.00. Our reasoning is that currently the first mortgage is in foreclosure. We certainly would recommend against the HRA redeeming the current first mortgage for the purpose of preserving its second mortgage. Thus, if the foreclosure were to continue then'the HRA would in all likelihood lose its complete interest in the second mortgage. It is to our benefit to work with the current owners so that our second mortgage is not extinguished. Further, by setting a limit on the new first mortgage in the amount of $1,300,000.00, the amount of debt would be reduced to which our second mortgage was being subordinated. Suite 205, 6401 Universiri Ave- N.E., Fridley, Minnesota 55432, 612 -571 -3850 5-A Jock Robertson August 2, 1988 Page Two Finally, the building owners have asked the BRA to authorize the release of funds held in the Lease Fund and Purchase Fund to the building owners. They have advised-that there is approximately $81,000.00 in the Lease Fund and approximately $16,000.00 in the Purchase Fund. The purpose of the Lease Fund is to provide to the Trustee a form of security to ensure that the building owner timely makes its rental payments on the parking lot. While the Indenture of Trust is not clear as to whether or not the HRA can require the disbursement of funds from this Fund for the purpose of making delinquent rental payments, you will recall that in the past when we have attempted to use this fund for the payment of delinquent parking lot rent, the Trustee refused to release the funds to you. The Purchase Fund is to be used for the purchase of that portion of the parking lot which the building owner has an option on. Originally, this option arose at the end of thirty (30) years. We have now extended the option to ninety -nine (99) years. Since the right to purchase a portion of the parking lot is merely an option, clearly the HRA cannot compel the Trustee to disburse anything from this fund in order to require the purchase of a portion of the parking lot. It would be my recommendation that we agree to allow the dis- bursement of funds to the building owner subject to the Trustee's concurrence. I believe that the HRA currently has sufficient safeguards to require the timely payment of all rental payments for the parking lot (i.e. the commencement of an unlawful detainer). I also believe that the HRA does not have any right to direct or utilize any funds contained within the Purchase Fund and therefore has no interest in requiring the building owner to maintain this fund. I would appreciate it if you would have the HRA review these items at their next meeting and to provide you with the necessary authorizations in order to execute the necessary documents. incerel yours, J f .. David P. ewman DPN:jeb Enclosure cc: Leonard Juster !>-B ADDENDUM A This Addendum is made to that Lease dated August 1, 1988 by and between the Fridley Plaza Office Building and the City of Fridley. I. Nothwithstanding any other language contained within the Lease, the City's obligations are strictly and totally conditioned upon the City of Fridley entering into final contracts for constructing an addition to and remodeling the Fridley City Hall. In the event that the City of Fridley has not entered into or awarded final contracts for said construction remodeling on or before October 1, 1988, then this Lease shall be of no effect and shall automatically become null and void. Dated this 1st day of August, 1988. THE CITY OF FRIDLEY By S, Nasim M. Qureshi Its City Manager FRIDLEY PLAZA OFFICE BUILDING PARTNERSHIP By Its ADDENDUM A This Addendum is made to that Lease dated August 1, 1988 by and between the Fridley Plaza Office Building and the City of Fridley. I. Nothwithstanding any other language contained within the Lease, the City's obligations are strictly and totally conditioned upon the City of Fridley entering into fin-.' contracts for constructing an addition to and remodeling the Fridley City Hall. In the event that the City of Fridley has not entered into on or or awarded final contracts for said construction remodeling and before October 1, 1988, then this Lease shall b of no effect shall automatically become null and void. Dated this 1st day of August, 1988- THE CITY OF FRIDLEY By Nasim M. Qureshi Its City Manager FRIDLEY PLAZA OFFICE BUILDING PARTNERSHIP By Its 5-c Loll 11111 N-27-7101;1411 • 6 COMMISSION MEMBERS: LAWPENCE COMMERS, CHAIRMAN DUANE PRAIRIE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY M: Housing & Redevelopment Authority Kmbers FROM: Jock Robertson, Executive Director of HRA DATE: August 4, 1988 REGMIM: Update of Information on the Proposed "4OTIMES" Elderly Housing Proj ect On July 26th, representatives for "The Cottages" were informed that in order for staff to proceed with an economic analysis of the proposal, the following items were needed: 1. The tax I.D. nwbers for the parcels which they intern to use for the development; 2. A description of the type of assistance they will be seeking from the HRA; 3. Developers' estimate of what they believe the nerket rate real estate taxes will be without the use of any assistance; and, 4. Evidence of site control. im Since the time schedule indicates that the earliest date the City Council can approve a special use permit for the proposed project is Sept. 26, I propose that staff work with the developers between now and the preparation of the agenda for the Sept. 8th HRA meeting on the economic analysis for HRA review and action then. If the HRA decides favorably, the development agreement could then be prepared for firal approval at the October HRA meeting. JR:ls N.E--88 -193 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (6 12) 571 -3450 FRIDLEY, MN 55432 EXT. 11? ARKELL DEVELOPMENT CORPORATION Metro Square Building Saint Paul, Minnesota 55101 293 -0910 1 August 1988 Fridley HRA c/o Jock Robertson City of Fridley 6431 University Fridley, MN 55432 Re: City of Fridley assistance for 90 -94 units of COTTAGES to be developed by Arkell Development. Dear Mr. Robertson: Arkell Development is proposing a 90 to 94 -unit senior housing project on two sites, one being the 6.7 acre parcel located at the approximate north- east corner of 694 and Central Avenue, just off of Hillwind; and the other being at the approximate northeast corner of Rice Creek Blvd. and Old Central. This is to consist of 60 to 64 , and 30 units, respectively, and-.is to..be'.built for moderate income persons age 55 and better. Its.whole thrust is one of market -rate quality housing for below market -rate rents. The rents which we have proposed are $385 for a one - bedroom unit and $485 for a two- bedroom unit. In order to attain them, Arkell Development has contributed $109,000 in rental subsidy and is requesting City assistance in the following forms: 1. Housing Revenue Bonds: 2. Interest Rate Reduction wherein the incremental portion of the new tax amount is used to buy down.the rate on the bond for a period of 12 years. 3. A grant of one -half the amount required to correct soil conditions on the City site. (The estimated total cost is $300,000. Therefore the approximate City portion would be $150,000.) 4. A purchase price of $1.00 for the City owned land. It should be stressed that the relatively high cost of $5,300 per unit necessitates the construction of 90 to 94 units and the consequent acquisition of both parcels. In other words, all of the above are required if the COTTAGES are to be economically viable. Sincerely yours, John Arkell ARKELL DEVELOPMENT ja:cjs EQUITEC Properties Company A AW0C0fp Amncial Smurr Camp my August 1, 1988 Mr. John Arkell The Arkell Development Corporation 121 East Seventh Street St. Paul, MN 85101 Dear Mr. Arkell: This letter is to confirm that EQUITEC PROPERTIES COMPANY, INC., a nationwide developer and manager of real estate properties, is engaged in discussions with your company, The Arkell Development Corporation, to become a co -developer or owner of Arkell's "Cottages" projects currently In various stages of development. While no definitive agreement has been reached at this time, the expected terms will include an agreement by EQUITEC, or an entity appointed by it, to become the obligor on housing revenue bonds which communities may issue to finance these projects. This agreement is subject to the approval of all EQUITEC board members and appropriate committees. EQUITEC, or its appointed entity, would also be the Project owner of record for real estate tax assessment or other community financial support purposes. The final agreement regarding this ongoing relationship is expected by approximately September 31, 1988. We look forward to a highly successful relationship in the development of the "Cottages" projects. Yours very truly, TPROPERTIES COMPANY, INC. , Brink Director 101 East Fifth Street Suite 1810 St. Paul, MN 55101 (612) 222 -2048 s' 7 EST I M'A'TES FROM: City of Fridley Engineering Division TO: Honorable Mayor and City Council City of Fridley 6431 University Avenue N.E. Fridley, Minnesota 55432 DATE: JULY 18, 198B CITY OF FRIDLEY PUBLIC WORKS DEPARTMENT 6431 UNIVERSITY AVENUE N.E. FRIDLEY, MINNESOTA 55432 LAKE POINTE DEVELOPMENT MAINTENANCE PROJECT #181 %A RE: Estimate No. 3 Period Ending: 7 -15 -B$ FOR: TALBER6 LAWN 6 LANDSC 100 WILSHIRE DRIVE MINNETONKA, NN 55343 STATEMENT OF WORK ----------------------------------------------------------------------------------------------------------------------- - - ---- ESTIMATED UNIT QUANTITY THIS TOTAL CONTRACT ITEM QUANTITY PRICE UNIT ESTIMATE TOTAL AMOUNT Maintenance Services 1.00 33,750.00 LUMP SUM 0.143 0.429 14,464.29 ------------------------------------------------------------------------------------------------------------------------- TOTAL $14,464.29 7 -B SUMMARY: Original Contract Amount (33,750.00 Contract Additions $0.00 Contract Deductions $0.00 Revised Contract Amount $33,750.00 Value Completed To Date $14,464.29 Amount Retained (51) $723.21 Less Amount Paid Previously $9,160.72 AMOUNT DUE THIS ESTIMATE $4,580.36 CERTIFICATE OF THE CONTRACTOR I hereby certify that the work performed and the materials supplied to date under the terms of the contract for this project, and all a zed changes thereto, have an actual value under the contract of the amounts shown on this estimate (and t f ' in quantities on the final estimate are correct), and that this estimate is just and correct and no par the ° ount j s Es ate' has been r d. �7 By - -- - --- - -- - - -+ -- Date ---------- - - - - -- - - - -- - - - -- ---- - - - - -- Cc r thorized Represent IV (Title) CERTIFICATE OF THE ENGINEER I hereby certify that I have prepared or examined this estimate, and that the contractor is entitled to payment of this estimate under the contract for reference project. CITY OF FRIDLEY, INSPECTOR By -- - - - - -' --- '-`- -- - - Checked By.,t Ae e' � /PPRPASEI'AG RPAGE2'ASP RPAGE3'AGPP Date 7 -26 -88 Respectfully Submitted, n 6. Flora,P.E. Public Yorks Director LA I MS IM - ]79r, ep SOLIDIFICATION, INC. Specialists in Underpinning a Ground water Control 7233 WINNETKA AVENUE NORTH MINNEAPOLIS, MINNESOTA 55428 Telephone (612) 536.1065 TO City of Fridley 6431 17ni vprai i•W AvpnTTp Nnri-h F.aai- Fridley, Minnesota 55432 TERMS NET CASH DUE 10 DAYS FOLLOWING DATE OF INVOICE TERMS' A SERVICE CHARGE OF 196 PER MONTH WILL BE ADDED TO ALL ACCOUNTS OVER 30 DAYS EQUAL TO 12% PER YEAR. 8-A DAs' INVOICE 005247 !> "'M DATE Cr ORDER 001010 TAREM 1Y C. Lindelof CWToon".5 ORDER I Bentonite and Cement W O #4189 JOD LOCATION 81st and Hi JOB PHONE 571 -3452 gTARTINO DATE 6-29-AR REMITTANCE ADDRESS: 620 Cottonwood Lane Minneapolis, MN 55441 DATE LABOR MRS. RATE I AMOUNT DESCRIPTION OF WORK S-29-83 Labor & Eguipmen 4 109,c bentonite cemeni- ._.._. 3 (men) grout and dye water at nature - -- 6-30-83 Labor & Equipment 6 109.S8 659.8 preserve Iocated a s an _ 3 (men) 7 -7 -88 Labor & Equipment 4 83. 333.4d 2 (men) 7 -8 -88 Labor & Equipment 3.5 109.t 394.9 3 (men) OTHER CHARGES TOTAL OTHER MATERIAL CITY. PRICE AMOUNT Bentonite 5 3.50 17.5 Cement 6 75.24 45.1.4 Dye .25 27.140 6.8 MATERIAL 4 5.7 DATE COWKMD 6 -29 -88 TOTAL LABOR LABOR _ 1818.13 -. Mark Birch Wait ordered by�V 94Fwaun I tweby wAno.aapo nr "unfaciarr oomWoDOn of mo dove ""ft" .-a • TOTAL OTHER TAX 229 TOTAL 7-94 /I�'®D- Iv I } 7 TO: FRIDLEY H.R.A. FROM: CITY OF FRIDLEY RE: BILLING FOR PERSONAL SERVICES FOR JULY, 1988 PERSONAL SERVICES: July TOTAL OPERATING EXPENSES: Long Distance Postage Financial Statement Paper Delivery Service MIS allocation Construction Management 2nd Quarter Copier Allocation Insurance Allocation Electricity Inspection Service Inspection Service TOTAL TOTAL FUND 236 4,850.80 4,850.80 1.85 32.31 13.00 9.15 2,023.50 ' 113 1 �v 13,000.00 ��-p� 99.62 28,374.00 106.14 1,205.56 947.23 45,812.36 $50,663.16 H.R.A. LABOR DETAIL NAME HOME DEPT 236 HOURS PAY PENSION TOTAL Samantha Orduno 02 30 4.00 63.41 7.40 70.81 Samantha Orduno 02 30 2.40 38.05 4.39 42.44 Shirley Haapala 02 30 6.90 103.74 10.89 114.63 Shirley Haapala 02 30 4.40 66.15 6.95 73.10 Barbara Ridout 03 30 3.00 35.95 4.23 40.18 Sharon Fatting 03 30 44.00 604.03 71.03 675.06 Sharon Fatting 03 30 8.50 116.69 13.73 130.42 Richard Pribyl 03 30 8.00 213.86 25.15 239.01 Carol Bartlett 03 30 1.00 8.78 1.03 9.81 Julie Burt 03 30 3.13 62.78 7.36 70.14 Julie Burt 03 30 2.80 56.25 6.61 62.86 Carol Bartlett 03 30 3.00 26.33 3.10 29.43 Barbara Ridout 03 30 10.00 119.85 14.08 133.93 Richard Pribyl 03 30 9.60 256.63 29.94 286.57 Donna Saba 06 30 14.00 116.62 13.72 130.34 Donna Saba 06 30 12.00 99.96 11.76 111.72 John Robertson 06 30 2.00 46.51 5.47 51.98 TOTAL FOR DEPT #30 2,035.59 236.84 2,272.43 Elsie Hanscom 03 31 2.00 19.22 2.02 21.24 Elsie Hanscom 03 31 1.00 9.61 1.01 10.62 John Robertson 06 31 9.00 209.29 24.61 233.90 John Robertson 06 31 12.00 279.05 32.82 311.87 TOTAL FOR DEPT #31 517.17 60.46 577.63 John Flora 06 32 6.00 165.79 19.41 185.20 John Robertson 06 32 2.00 46.51 5.47 51.98 TOTAL FOR DEPT #32 212.30 24.88 237.18 Richard Pribyl 03 37 4.80 128.31 14.97 143.28 Richard Pribyl 03 37 4.00 106.93 12.57 119.50 John Robertson 06 37 6.00 139.53 16.41 155.94 Mark Burch 06 37 30.00 622.52 73.21 695.73 Mark Burch 06 37 20.00 415.01 48.81 463.82 John Flora 06 37 6.00 165.79 19.50 185.29 TOTAL FOR DEPT #37 1,578.09 185.47 1,763.56 TOTAL PERSONAL SERVICES FOR JULY $4,343.15 $507.65 $4,850.80 #p V t � 1 } i1 W I" I E i i I I I II NI J] 411 4#17 W 1#JI ,O N li •O i I I I I I rW I i m � I �O V 1 .N. I wi mP P P (N(�� N WNW �N4.J1 .O N P P P 01 m m V V P -# # W W W W- N N r r r 1 m 1��I W y W W W® Lmll fJl ZZaC [.JI tZf1 N m t�11 m (6/11 m 11 Nl�t N m C fA rm EMU, rO +i+ -Z ,1 i ..+ T r c7 n mw C - r � H o w M m 2 ° °m 9 •L� m °Tm4_ 8 T sa � 111 1 ° y m 1m�1 2 l SO C, 3f tH C7 � -1 1 r I 1 Yt y T a -4 fA ® 4/t ar m a 411 IC P L#11 m N N m r �1 P N m? A o- Lmll V C � N m V �+ V P V P ✓D N V N N m VI I>O P m m J! r N m � i� I Cr s 1 r C VSO �Li 0 a I N -� '�►° I mr i rtim � I IO I + +i.a 4e�� W w w# # V V V V m V V V e M y t ncn. ^ min Cc 1 m 1 I mNN �t . ►1 �L�,n1t L11 ... # # ��11 �• yy mmm N .ap X11 {/f A m 1 + r r r n # 1m� 1� r a V& N m !p 1 ut m fJTmf b ; .0 K 6� i � I _ r T O W I W H r Ij I � 1 m m m N N N P N m m# # N 1 V J m# m �tl N m V N W 4!1 b IT m ,il N m J7 W m N ro ID I m i' N Lll 411 LJI .O r r N N NI W? yW r . mp 1��+f W N p N I CA H M �o V atl cri a m _W V 1� i (D m w O N T m N m a r 9r� O H 2 a j 2 X@bM WHER ALLOWIM FOR PERIOD OF 4/1/88 TO 6/30/88 2,089.01 $2,089.01 PROGRAM PR PERCENT PROGRAM NAME ACTIVITY CODE NUHM ALLOCATION ALLOCATION CITY COUNCIL 101 -01- 105 -42350 0.15015 313.66 PLANNING COMMISSION Planning commission 101 -01- 110 - 42350 -1101 0.04417 92.27 Corm. DevelopemP.nt 101 -01- 110 - 42350 -1107 0.00513 10.72 Appeals Commission 101 -01- 110 - 42350 -1103 0.01007 21.04 Parks & Rec. Commission 101 -01- 110 - 42350 -1104 0.00928 19.39 Envir. Qual. Carom. 101 -01- 110 - 42350 -1105 0.00647 13.52 Human Res. Carom. 101 -01- 110 -42350 -1106 0.00822 17.17 OTHER COMMISSIONS Police Corm. 101 -01- 115 - 42350 -1151 0.00092 1.92 Charter Carom. 101 -01- 115 - 42350 -1152 0.00172 3.59 GENERAL MANAGEMENT Management 101 -02- 205 - 42350 -2051 0.02778 58.03 Public Information 101 -02- 205 - 42350 -2052 0.00794 16.59 PERSONNEL Personnel Prac. 101 -02- 210 - 42350 -2101 0.00519 10.84 Labor Relations 101 -02- 210 - 42350 -2102 0.00051 1.07 OSHA, Emp. Safety 101 -02 -210- 42350 -2103 0.00183 3.82 ACCOUNTIM Non - Payroll Acctg. 101 -03- 310 -42350 0.07195 150.30 ASSESSOR Prop. Tax Admin. 101 -03- 315 -42350 0.01046 21.85 POLICE Tech. Sery 101 - 04-405 -42350 0.11776 246.00 CIVIL DEFENSE 101 -04- 410 -42350 0.00472 9.86 FIRE Fire Admin. 101 -05- 505 -42350 0.02983 62.32 Prevention 101 -05- 505 -42350 -5052 0.00897 18.74 a ALIOCPY2 KODAK COPIER ALLOCATION FOR PERIOD OF 4/1/88 TO 6/30/88 2,089.01 $2,089.01 PROGRAM PR PERCENT PROGRAM NAME ACTIVITY CODE NUMBER ALLOCATION ALLOCATION COMMUNITY DEVELOPMENT Bldg. Code Enforc. City Code Enforc. Planning PUBLIC WORKS Street Maint. Shop Operations Weed Control NATURALIST Nature Interp. CABLE TELFVISICN 101 -08- 805 - 42350 -8051 0.02875 60.06 101 -08- 805 - 42350 -8052 0.00245 5.12 101 -08- 810 - 42350 -8MM 0.04397 91.85 101 -06- 615 -42350 0.02671 55.80 101 -06- 635 - 42350 -6351 0.00765 15.98 101 -06- 635 - 42350 -6355 0.00279 5.83 101 -06- 635 - 42350 -6358 0.00018 0.38 101 -07- 705 -42350 0.00872 18.22 101 -07- 715 -42350 0.279042 582.95 1,928.89 Cable Comnission City Channel 225 -25- 000 -42350 225 -26- 000 -42350 0.00353 0.00353 7.37 7.37 14.74 236 -31- 000 -42350 0.006814 14.23 236 -32- 000 -42350 0.006814 14.23 236 -33- 000 -42350 0.013628 28.47 236 -34- 000 -42350 0.006814 14.23 236- 35-000 -42350 0.006814 14.23 236 -37- 000 -42350 0.006814 14.23 99.62 on 10 ALLOCPY2 KODAK COPIER ALLOCATION FOR PERIOD OF 4/1/88 TO 6/30/88 2,089.01 $2,089.01 PROGRAM PR PERCENT PROGRAM NAME ACTIVITY CODE NUMBER ALLOCATION ALLOCATION 601 -75- 000 -42350 0.00551 11.51 SEWER Admin. 602 -80- 000 -42350 0.00171 3.57 15.08 LIQUOR - BOTTLE SLOP 609 -95- 946 -42350 0.007345 15.34 LIQUOR - WAREHOUSE 609 -95- 947 -42350 0.007345 15.34 30.68 TOTALS 100.00% $2,089.01 If DATE 07/14/88 C I T Y OF F R I D L E Y PAGE 1 CITY - p1RlM YEAR YEAR TO DATE MOM ACCOUNT ACTIVITY A=WT DATE DESCRIPTION PO /INAM PATCH VEWOR DEBIT CREDIT 601 - 74-000-47220 REPAIR & MAINTENANCE SLPPLIES 18982 - 02/18/88 JANUARY COPIER USAGE IN21076 0017 E00OO4 667.39 19429 03/16/88 FEBRUARY COPIER USAG IN7.1499 0027 E00004 721.80 19869 04/14/88 MARCH COPIER USAGE IN22023 0038 E00004 668.94 NO CHK 03/02/88 CORRECTING ENTRIES JF0O085 0011 328.70 20180 x/05/88 APRIL COPIER USAGE IN22320 0047 E0O004 743.`•8 20984 06/16/88 MAY COPIER USAGE IN22948 0064 E00004 682.75 UAMEc�� TOTAL NUMBER OF TRANSACTIONS 6 TOTALS 13.813.16 � Ck �� nErt uk+n 743058 2. + C 68?ti + Wr i ifjr- rn Lt+ , �.)a* *ft- 662-68 + -this i5 -he 1F)rrtAl"�# �,1g inVic� . 2 ) 0 8 9.01 DATE 08/10/88 CITY OF FRIDLEY - WA N P I POO8 DECK REGISTER CHECK RUN BATCH # x0008 002 HRA VENDOR DISC. .JOB DESCRIPTION INV # POIINV # SEG # PCHT AMOUNT ACCT NUJm NO MESSAGES 1785 ffff CHECK- PREPAID fft FODD72 FIRST TRUST INTEREST 83325 00079 -01 DEBWO.0000 25,539.82 UM -20200 ACCOUNTS PAYABLE 25,539.82 OW -10100 CASH ffH TOTAL Yaw H f 25,539.82 1786 HH CHECK- PREPAID fff* F00072 FIRST TRUST INTEREST 83313 00080-01 DEW0.0000 143,763.77 DR381 20200 ACCOUNTS PAYABLE 148,763.77 CR381 -10100 CASH TOTAL VENDOR f 148,763.77 1787, +f+f DECK- PREPAID tttf F00009 FIRST BANK NATIONAL AM. REMARKETING AGREEJENT 00081 -01 DEBQ8P0.OD00 3,598.01 EMI -20200 ACCOl9ITS PAYABLE 3,598.01 CFMI -10100 CASH + TOTAL VENDOR ffff f 3,598.01 1788 DECK-PREPAID **ff 800170 BARTON- ASCHMAhI ASSOC., INC. PROFESSIONAL SERVICES 46732 00082 -01 BEEMM.0000 9,190.42 M460 -20200 ACCOUNTS PAYABLE 9,190.42 CR460 -10100 CASH ++** TOTAL VENDOR f 9,190.42 1789 CHECY.- PREPAID Hff 800123 BQAM k ASSOCIATES PROFESSIONAL SERVICES 00083 -01 DEBQB.l0.0000 6,085.80 M450 -20200 ACCOUNTS PAYABLE 6,085.80 CR450 -10100 CASH + TOTAL VENDOR ffff f 61085.80 1790 ff** CHECK- PREPAID **ff MOD44 CA SERLY LAY OFFICE PROFESSIONAL SERVICES 00084 -02 DEBBBN0.0000 325.00 DR450 -20200 ACCOUNTS PAYABLE 325.00 CR450 -10100 CASH PROFESSIONAL SERVICES 00084 -04 DEBM.0000 200.00 DR450-20200 ACCOUNTS PAYABLE 200.00 CR450 -10100 CASH PROFESSSIONAL SERVICES 00084 -03 DEBQESO.0000 200.00 M455 -20200 ACCOUNTS PAYABLE 200.00 CR45-10100 CASH PROFESSIONAL SERVICES 00084 -01 DEBQH60.0000 1,225.00 M460 -20200 ACCOUNTS PAYABLE 1,225.00 CR460 -10100 CASH TOTAL VENDOR tff f 11950.00 1791 ffi* DECK -MAID F00023 FRIDLEY, CITY OF IMPROVEJ'ENT OTHER THAN BL 00085 -01 DEBM.0000 13,401.69 DR455-20200 ACCOUNTS PAYABLE �H�&'-*" 13,401.69 CR455 -10100 CASH TOTAL VENDOR ffff f 13,401.69 1792 ff*t CHECK- PREPAID + FOD023 FRIDLEY, CITY OF PERSONAL SERVICES -,JULY 00086 -02 DEBQBXO.0000 577.63 DR450 -20200 ACCOIUITS PAYABLE 577.63 CR450 -10100 CASH PAGE 1 DATE 08/10/88 PROGRAM P0OS CHECK RU?! BATCH # :0008 CITY OF FRI3P - HtA DECK REGISTER 002 HtA VENDOR DISC. DESCRIPTION INN # PO /INV # SEQ # PCNT NUXT ACCT !UMBER PROFESSIONAL SERVICES 00086 -10 DEBODAD.0000 2,600.00 M450 -20200 2,600.00 CR450 -1010Q PROFESSIONAL SERVICES 00086 -11 DEBQDKO.0000 10,400.00 DR450- ''0200 10,400.00 CR450 -10100 PRINTING & BINDING 00086-12 DEBM.0000 14.23 M450 -20200 14.23 CR450-10100 PERSONAL SERVICES -.ULY 00086 -03 DEBQDW.0000 237.18 M451 -20200 237.18 CR451 -10100 PRINTING & BINDING 00086 -13 DEBQE00.0000 14.23 DR451 -20200 14.23 CR451 -10100 IIISLRANCE -NON- PERSONNEL OM6 -14 DEBQE40.0000 1,589.00 DR451 -20200 1,585.00 CROI -10100 PRINTING & BINDING 006 -15 DEBQE90.0000 28.47 DR452- -20200 28.47 CR452 -10100 I - IGN -PQt l 00086 -16 DMC0.0000 11,276.00 M452 -20200 11,276.00 CR452 -10100 PRINTING & BINDING 00086 -17 220 0.0000 14.23 DR453 -20200 14.23 CR453 -10100 PRINTING & BINDING 00086-23 DEBQEN0.0000 14.23 DR454 -20200 14.23 CR454 -10100 PERSONAL SERICES -JULY 00086 -04 DEBQtN00.0000 1,763.56 DR455 -20200 1,763.56 CR435 -10100 PRINTING & BINDING 00 6 -18 DEBQGBO.0000 14.23 DR455 -20200 14.23 CR455 -10100 INS[XAhCE- NON- PERSONR 00 6 -19 DEBQGF0.0000 15,509.00 M435 -20'00 15,509.00 CR455 -10100 UTILITY SERVICES 00086 -20 DEBQGN0.0000 106.14 M4335 -20200 106.14 CR455 -10100 SERVICES CONTRACTED -NON -P 00 6 -21 DEBOMO.0000 1,205.56 DR455-20200 1,2X.56 CR455 -10100 SERVICES CONTRACTED-NW 00086 -22 DEBQ0PO.0000 947.23 DR455 -20200 947.23 CR45.`r10100 OFFICE SUPPLIES 00 6-05 DEBM.0000 13.00 Dt460-20200 13.00 CR460 -10100 PERSONA: SERVICES -JULY 00086 -01 DEBOHA0.0000 2,272.43 M460 -20200 2,272.43 CR460 -10100 COMMUNICATIONS 00086-06 DEBK0.0000 1.85 M460 -20200 1.85 CR40-10100 COMMUNICATION 00086 -07 DEBQI50.0000 32.31 IR460 -20200 32.31 CR460 -10100 COM W.'ICATION OOGE6-w DMIWD.0000 9.15 M460 -20200 9.15 CR460 -10100 SERVICES CONTRACTED-IGN -P 00086-09 DMIZ0.0000 2,023.50 M460-20200 2,023.50 CR460 -10100 ffH TOTAL VENDOR ffff $ 50,663.16 ffff ffff 1117�A93ne NDDD09 ,YY..iC,,, GEORGE H. / COMPANY PROFESSIONAL SERVICE 2690 00087 -01 DEBQHEO.0000 1,500.00 M460 -20200 4- 1,500.00 CR460 -10100 **" TOTAL VENDOR ffff $ 11500.00 JOB NCR MESSAGES ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCO NITS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH AMOUNTS PAYABLE CASH ACCOUNTS 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 CABs AMOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH PAGE 2 DATE 08 /10/88 CITY OF FRIDLEY - HtA PAGE 3 PRPRAM F008 CHECK REGISTER CI CK RLN BATCH f :0008 002 HtA VENDOR DISC. JOB DESCRIPTION INV i PO /INV f SEA 1 PCHT AMK w ACCT Nim No MESSAGES 1794 tit CHECK- PREPAID HH H00019 HERRICK & NEWMAN PROFESSIONAL SERVICES -LEG 00088 -02 x.0000 18.00 DR455 -20200 ACCOL TS PAYABLE 18.00 CR455 -10100 CASH PROFESSIONAL SERIVCE -LEGA 00088 -01 DEBQHi0.0000 1,839.55 DR460 -20200 ACCOUNTS PAYABLE 1,839.55 CR460 -10100 CASH ffi* TOTAL VENDOR fft f 1,857.55 1795 to CHECK- PREPAID ttft P00094 POPHAM, HAIK, SDIMBRICH, PROFESSIONAL SERVICES 224514 00089 -01 DEB=O.0000 162.00 DR455-20200 ACCOUNTS PAYABLE 162.00 CR455 -10100 CASH ffff TOTAL VENDOR ffff f 162.00 m i TOTAL NAB OF CHECKS WRITTEN : 000000 *m TOTAL DOLLARS FOR CHECKS WRITTEN : f 262,712.22 om LAST CHECK NLNER : 00178- ra ru na ,.. r � ,.. prl O 0 w NrU N W� w O m O� O� N 0 n O O O 0 O O 0 O O O O 0 0 O 0 0 V 0 0 N .a O O r 0 a O O 0 W nl O W O O O O 0 N r 0 0 O O O O O O c m m m 0 D 3 3 3 D -1 -4 ►+ ►+ C� tD� D Rm Zc mO tm0 Ra CCv CG > a m m m m m m o o -1 0 -I -1 -1 a m m m m x x a Cl z z N m m �u w N -1 m c m o o o cc m w m w c N m c m m m -1 ,-1 a A --4 O O O � N 3 cn e v v v m m o -1 N 3 m m m -i m m m m m -1 m Z a. cps m 2 N V z Qn z O O m I 1 �I '0 T a o m m m m m m m - 3 O 4 -1 m c " m D < -i x m 0 m 0 m n m 0 c ►+ c m cl M 1 m m z m z c m z < a m m m m m a D o z 1� IQ 7d vm o c I�* a W c c < c r r v m w z m c r m o a a a D m m r� m w m m m a m m is z m c 3 m v c m --1 D a z 0 m z I I I m z N m c M -I M r m � v 0 o Ell z m m m c Z a m z N m r ° `" m Z 0 z z m N m -i v m -4 Pi " I i N0 V ►- Rl a. P 1b V 1 I u 00v 0 0 0 w I N V V O p O v my 0 I to N O O O O O O 0 O O N O O O O O O O O O O ? -i 1 P N O O O O O O 0 O O N O O O O O O O O O O P N I 3 a Pi Z Pi w g o 0 `� mo N V V O O V CO u O � 0 O O O O O O O N O O O O O O O O O O N -D1 P O P O O O O O O O O N O 0 O O O O O O O O N [O m I NN V I I1I `0 -b V 1 O W P p O p O ppV O O N -A O O O O O O O O O O O O O O O O O O O .0 01 o N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 •- m j A r r 0 W 0 V r ph V [J N m O O O N V -b W .A 0 0 I P w A N -0 0Op 0- -0 .0 C I m mVm NNN p-0. pO .0p p4b V W m O m O O 0 N N [0 m N GM7 N A O O O V O W O CO N .0 O O O O O N V O -0 O N -1 I N V O O O N O N O W P u O O 0 O O N ? N m O .0 CO •0 W r r ►. I O ►+ V P 4 w r V V r m D to N tpp0 N P W 0pp] �+ r O ,0 V 0 mrm N pWp W N O T pWp 9 W C-j I m N m ►+ 0- m m W A w �0 P t0A r O % w m : r X m o 01 N V 9 N W O W m r O N V ►- v 1 N 0V A 0 m U 00 00 00 00 00 00 00 -0 0 00 W P w 00 � a 0 [Ig m r 44 r CC I I %W m r T (r� N N % A V V O m N N P m V 4 N m P (NA nJ V m I -mm0 N N N w 0 O 0NN- N O N > I N V .VO imp A O pO O O p O N Or A lu 2 p O -0 all m o O O O O O O O O N O O W O W 1 0 1 O O t� 0 0 0 0 0 0 0 0 N 0 0 w 0 '0 m I 0I w N po V O N W V W tNA N � to O m m N O O O O .0 O P O O O N O A COC Z b m U, A N O z .0 11 ,N U fJ W A O fl N N A p NN pp, n z r O O O m W Np m O O W N 0. p r0 O � O N a. � O O %00 .P 0 O O N V .NO O 1j � fflf' ��pp pfl V W V O V r N IJ T NN fl b O p ID' N 0 O V N r r t71 N O 0% W W n D o o m Nm a o o 4 o 4 0 4 w N 10 oR n fl n n fl b D m O O m m m A { w O � O m O Z m -n a r -n ;u ;u M b r m m r CDCD V VO D D N NP U U N N? A A I N 4 4% [ [L�J W W m mmW p pN. N N N 0 0 0 o o O O o o a a o o 0 0 O O o o 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O O O O O O O O O O O O O O O O 0 01 0 I I I m I I Z I -i A A A A D DAD D DD A AA A A A A D DDA A A D DAD A A A A A A A A A A I II w N po V O N W V W tNA N � to O m m N O O O O .0 O P O O O N O A COC Z b m U, A N O z .0 11 ,N U fJ W A O fl N N A p NN pp, n z r O O O m W Np m O O W N 0. p r0 O � O N a. � O O %00 .P 0 O O N V .NO O 1j � fflf' ��pp pfl V W V O V r N IJ T NN fl b O p ID' N 0 O V N r r t71 N O 0% W W n D o o m Nm a o o 4 o 4 0 4 w N 10 oR n fl n n fl b D m O O m m m A { w O � O m O Z m -n a r -n ;u ;u M b r m m r A COC Z b m U, A N O z .0 11 ,N U fJ W A O fl N N A p NN pp, n z r O O O m W Np m O O W N 0. p r0 O � O N a. � O O %00 .P 0 O O N V .NO O 1j � fflf' ��pp pfl V W V O V r N IJ T NN fl b O p ID' N 0 O V N r r t71 N O 0% W W n D o o m Nm a o o 4 o 4 0 4 w N 10 oR n fl n n fl b D m O O m m m A { w O � O m O Z m -n a r -n ;u ;u M b r m m r fflf' ��pp pfl V W V O V r N IJ T NN fl b O p ID' N 0 O V N r r t71 N O 0% W W n D o o m Nm a o o 4 o 4 0 4 w N 10 oR n fl n n fl b D m O O m m m A { w O � O m O Z m -n a r -n ;u ;u M b r m m r b D m O O m m m A { w O � O m O Z m -n a r -n ;u ;u M b r m m r