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
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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
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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
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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.
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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.
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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
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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
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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.
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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
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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
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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.
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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.
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H ERRICK & NIEWMAN PA.
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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&
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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
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DArm C.FORSBERG
JNRoxz A.Gns
Meer L S STRESS
H. H. Ssmox H
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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
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ALAN H. MAC=
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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
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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
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RONALD E.OacaAaa
CHAR IER L HATNDH
GaEOOar J. STENxOE
GREGORY T
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JOHN TROTHS
ST EN WDNN1cz
ANDREA M. BOND
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TELECOPIER (MS) 222-4071
CHAH,e. B.ROGERS
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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.
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NANCY J.
TROxAs A.IAH5CN
JOHN B=MMA
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ANDREA L.MA
DAVID J. SPENCER
JAxzs G. RAT
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ANDREA M. MAGHxElEH
MR= J. C UZ, JS.
RECSASD H. MLETxR
INCLUDING T8E FORMER FIRM OF
CHERYL d THOxAS
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MICHAEL H.JESONExcS
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LEVITT, PALMER, EOWEN, $OTMAN & S$ARE
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M.B ScaeoEDEB
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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
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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-
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