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HRA 09/08/1988 - 6523HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, SEPTEMBER 8, 1988 7:00 P.M. Rick Pribyl Finance Director City of Fridley AGENDA HOUS IbG & REDEVELOREW AUMOR3TY MG. 'JHU%DAY, SEPTW ER 8, 1988 7:00 P. M. Location: Om mmity E ation Beater - 6085 - 7th Street N.E. CALL TD- ORDER: RDLL CALL: APP1aVAL OF MnMW : August 11, 1988 CDNSIDERATIDN OF A RMDLUTmN M ACQUIRE OPTIDN RmHTS m PART OF PLAZA RAMP SITE 7HR0UW LEASE AN12IDNENr . . . . . . . . . . . . . . . 1C CDNSIDERATIDN OF S[BORDIlWnG HRA'S SECDND NDRTGAGE ON FRIDLEY PLAZA, OFFICE BUI DIM . . . . . . . . . . . . . . . . . . . . . . . . �2,�- 2P CDNSIDERATIDN OF A FMOLUTIDN FaMnG M REDEVELOPMENT PImJELV ND. 1 AMID AN WING 7HE 14DDIF 3MTIDN REDEVELOPMENT PLAN RELATING 7HEREI0 AND AN MIND SHE TAX INCRIIMERr FINANCIlG PLANS RELATING M TAX INCREMW FIlHF 31G DISTRICTS ND. 2 7RMuGH ND. 8 W19H IN 7HE PRDJECT AREA . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 3A CDNSIDERATIDN OF A RESOLUTION RMUESTING A PUBLIC HEARING RELMDG ID REDE7VELOFMENT PMJBCr ND. 1 AND THE ANENT OF THE ✓ MODIFIED REDEVELOPMENT PLAN RELATING THERETO AND THE TAX INCREMENT FINANCING DISTRICTS NO. 2 THROUGH ND. 8 WITHIN THE P10= . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 4A CDNSIDERATDDN OF PREPARING DEVELOPMENT AGREEMENT FOR °THE CDTTAGES° PRDFOSAL CDNTIlGENT ON FAVORABLE PLANNING 4DNIl+RISSIDN / REVIEW ON SEPMBER 14, 1988 . . . . . . . . . . . . . . . . . . . . . 5 - 5F , \� CDNS IDERAT ID A7N OF PV ID IM DEFENSE AND INDEMN IF ICAT IDN 70 RICE PLAZA SHOPPING CENTER . . . . . . . . . . . . . . . . . . . . . . . . 6 - 6L ✓UPDATE ON PLAZA RAMP SEajR3TY SYSm . . . . . . . . . . . . . . . .., IMRNATIDN ON UNIVERSITY AVENUE DffWVEMENTS . . . . . . . . . . . . 8- 8R CDNSIDERATIDN OF APPIUVAL OF REDBURSEDEW ID THE CITY FOR NDORE LAKE WATER Q UAL ITY RAPROVEMW PiiWBCT . . . . . . . . . . . . . . . . 1 10B DI~SCUSSX)N OF 1987 FINANCIAL SD T MU . . . . . . . . . . . . . . . . 11 MMRMTIDN ON CHANGE ORDER ND. 2 ON RICE C tMX RDAD IlMPIaVE ENT ST 1988 -1 AMID 2 . . . . . . . . . . . . . . . . . . . . . . . . IMRMATIDN CST GiANGE ORDER ND. 3 FOR STREET 2&nWE ENT PIRDJECr ST 1988 -1 AMID 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . - 13B 5Z� °zs'C rFS °� G.S H� ESTMV TES . . . . . . . . . . . . . . . . . . . . . . . . . . 14 - 14B CLAIbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 OTHER BUSINESS: ADMUidNMENr CITY OF FRIDLEY HOUSING & REDEVELOPM= AU91iORITY MINUTES, AUGUST 11, 1988 CALL ZU ORDER: Chairperson Cam►ers called the August 11, 1988, Housing & Redevelopment Authority meeting to order at 7:12 p.m. ADLL CALL: Members Present: Larry Canners, Virginia Schrabel, John Meyer, Walter Rasmussen Members Absent: Duane Prairie Others Present: Jock Robertson, Executive Director of HRA Julie Burt, Assistant Finance Director Samantha Orduno, Management Assistant Dave Nem an, HRA Attorney Jim Hill, Director of Public Safety Jim Casserly, 215 S. 11th Street, Suite 200, Mpls. Gordon Sangster, 7169 Riverview Terr., School Dist. 14 Jim Furgason, 6381 Squire Drive, School Dist. 14 Lou & June Lundgren, 343 Kellogg Blvd., St. Paul Robert Silverman, 2200 First Bank Fast, Mpls. Kevin Jensen, State Bank of Springfield Alan Rouse, 1786 Hennepin Ave. S., Mpls. Jai & Shinjae Suh, 12 Island Road, St. Paul Joe Canners, 2233 No. Hamline Ave., Roseville Bruce Lundgren, 7545 Office Ridge Circle, Eden Prairie Bruce Peterson, 7545 Office Ridge Circle, Eden Prairie Dewey Johnson, 7545 Office Ridge Circle, Eden Prairie David Erickson, 7545 Office Ridge Circle, Elden Prairie William Fogerty, 12340 Fadisson Rd., Blaine Carol Slavick, Arkell Development Mark Clemens, Arkell Development Ron Christenson, Bossardt Christenson David Kroos, Boarman & Associates APPROVAL OF JULY 14, 1988, HOUSING & REDEVELOPMENT!' AUIHORlIY MINUTES: bDTIDN by Mr. Rasmussen, seconded by Mr. Meyer, to approve the June 14, 1988, Housing & Redevelopment Authority minutes as written. Ur-ON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CDNMMERS DECLARED THE MOTION (TARRIED UNANDDUSLY. Mr. Robertson stated he would like to change the agenda and have "Tax Increment Districts /Refund of School Levy" as the first item on the agenda. 1. CONSIDERATIDN OF TAX INCRM= DISTRICTS /REFUND OF SCHOOL LEVY: Mr. Camlers stated the HRA members had a copy of a letter from Jim O ' Mea ra -1- HOUSING & REDEVELOPM= AUIHOR1'1'Y MMTIlWx, AUGUST 11, 1988 which was a followup to the HRA's earlier request to him with respect to the refund of certain portions of the tax increment fund to the school districts. Ms. Burt stated that since the last meeting, Mr. O'Meara had come to the City and reviewed the bond arrangements that were made with the bonds that were sold and how they related to this change in the tax law. There are three situations that can occur.- Category 3 stated that if the districts are certified after the last day of the bond sale, we will automatically have to provide that money back to the School District. The reason for this is that we were not planning on those funds when the bonds were sold, so, in essence, we did not need then. Ms. Burt stated situations 1 and 2 area little bit different in that the districts that were certified previously have bond requirements for which the increment was being pledged for the debt service on those bonds. Ms. Burt stated that due to the fact that a couple of the HRA's major developments have not gone through, they are not gaining the increment they had projected in on those projects; therefore, they do not have the funds they originally thought they would have to pay the debt service on those bonds. So, they need to find other sources. Ms. Burt stated Mr. Pribyl and staff's recaRunendation, along with Mr. O'Meara's, was that they do make the payment to the School District for circumstance #3. Unfortunately, that dollar amount was quite shall, $1,674. The reason for this is that the two districts that it applies to are just beginning- -the Winfield District and the Shorewood District. As of this point in time, the Shorewood District is not generating any increment. It will begin generating increment next year; but, again, that amount will be small. The Winfield district is generating a mall amount of increment. Ms. Burt stated they should look back in a year on the other districts and at that time if the developments are going a little bit stronger, maybe they can come up with the option of working in cooperation with the School District to get then some more money. But, right now, it would be unwise for the HRA to do anything like that because they need the money to pay the debt service on the bonds. Mr. Carmers stated that, as he understood it, they just have a very small amount they are required under the law to return to the school districts, and that was $1,674, and it was staff's and the attorney's recauiendation to do that. As far as the other alternatives of returning money, those were not statutory requirements but were discretionary; and, it was staff's and the attorney's reccu mendation that with regard to those alternatives, they would not return any money at this time. Ms. Burt stated that was correct. They have pledged that money to the bondholders, and they have an obligation to the bondholders first. Mr. Casserly stated Ms. Burt had summed the situation up very succinctly. The point that is being made is that because of the stage of development, -2- HOUSIlo & RIDEVEL R4ENr ALmJORM MEErM, AUGUST 11, 1988 they just do not know today the amount of revenue that will be available. Mr. Gordon Sangster and Mr. Jim Furgason from School District 14 were in the audience. Ms. Burt stated actually the $1,674 was for School District 16. There was no money for School District 14 at this time. The Shorewood District was the only development in School District 14, and there were no bonds pledged in that district. Mr. Sangster stated he was a little confused about the timing and had some questions about it. Ms. Burt stated Mr. Pribyl had attempted to contact some people from School District 14 to go over this with them, but was unable to do so before he went on vacation. She stated staff could go over this in more depth with the School District representatives at anther time. Mr. Campers stated that if there was sane issue on the timing and what increments should be taken into consideration and which increments should rot, he would suggest that staff arrange a meeting with the School District 14 Board, city representatives, and Jim O'Meara to get this resolved. Mr. Robertson and Ms. Burt agreed with Mr. Cammers' suggestion. NDTIDN by Mr. Raanussen, seconded by Ms. Schnabel, to approve the statutory refund in the amount of $1,674 to School District 16, and also to School District 14 to the extent there is any refund due to then. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON G D24ERS DECLARED THE MOTION CARRIED UNANDDUSLY. 2. CDNS IDERAT IDN OF LOU LUNDGREN PROPOSAL: Mr. Robertson stated that a good sunBnary of the status of this project appeared on agenda page 1 -F which was the second page of Mr. Nem an's August 5, 1988, letter. The three items listed were the items of financial assistance that Mr. Lundgren says is needed: (1) a letter of credit for $700,000; (2) additional financing in the approx. amount of $2,300,000; and (3) interest or write -down of 2 1/4% on a loan of $7,922,700. Mr. Robertson stated that from the time in January when the letter of credit was due, Centennial Mortgage was the chief financial underwriter and had indicated that if there was any problem with the financing package Mr. Lundgren had proposed, they could make that up with some equity participation from an equity pool. As the HRA could see, in the quasi - acceptance by Centennial Mortgage, that was not included; therefore, what they had all hoped in teens of a firencial package had not occurred. -3- HOUSIM & RED VELOPM U AUMORMY MEETING, AUGUST .11, 1988 Mr. Robertson stated that because they have not made substantial progress, it was not only his judgement, but also Mr. Newman's and Mr. Casserly Is collective judgement, that even though Mr. Lundgren has made a sincere effort, he has failed and that the HRA should terminate their relationship with him and cash his letter of credit. Mr. Robertson stated Mr. Lundgren has requested time to explain his position more fully, to explain his letter, and to speak to Mr. Newman's Aug. 5 letter. Mr. Lundgren stated he could not cmment specifically on Mr. Newman's letter dated Aug. 5, 1988, because he had not seen it before this meeting. He had not received his copy. Mr. Lundgren stated he was disappointed that Centennial Mortgage had not cane up with the size mortgage and /or the participating mortgage they had assured him and the City they would do. However, they did come up with a mortgage proposal, and the HRA had that. Mr. Lundgren stated he had explained to staff that he believed the three items listed in Mr. Netanan's letter can be obtained before he would close. He stated he has asked for nine specific points in his letter dated Aug. 4, 1988, to the HRA to find out where the HRA stood on certain things. Obviously, if the HRA was seeking sane money, he had to know what the amount was; and, depending upon how the HRA would respond to these particular questions, that amount would vary. Mr. Lundgren stated he believed he would need to have scene real evidence that the HRA had the ability to have land control, and he thought any other developer with any other mortgage finn would require the same. He could not put a package together based on the timing of certain things and then let it sit for 120 days. They have actual construction bids, and they have aleady kept then on 65 days. He might be able to keep then a little longer, but only with the sub bidder's consent. He believed he was very close. He believed he had a project the HRA and the City wants for this site. He believed there was no evidence that he had extended in any fashion, in terms of spending money or time, the exposition of getting the things that were required. Mr. Lundgren stated with him at the meeting were June Lundgren; Robert Silverman, his attorney; Kevin Jensen, President of the State Bank of Springfield; and Alan Rouse, one of his associates. Mr. Lundgren stated he would like to have the HRA discuss the nine points he has listed in his letter. He did not expect the HRA to say 'des" to all of then, but he would like an answer to each point, and he would like an extension. He stated he did not think the HRA would find any other developer who has worked harder on this project than he has, but more time was needed to consummate this particular project. He was requesting an extension of 60 days. And, he thought staff should be instructed to work out a development agreenent. QM HOUSIlVG & RFDSVIIc)R,4E P AU HOR=Y MEEErm., XX;L 'T 11, 1988 Mr. Robertson stated that before the HRA could enter into a development agreement with Mr. Lundgren, the HRA had to have some numbers, how those numbers were going to work, and the level of assistance the HRA could provide for this project. Mr. Lundgren stated he appreciated that. He was not asking for then to enter into a development agreement; he was asking then to discuss and work out a development agreement. Mr. Commers stated he felt every item listed in Mr. Lundgren's letter had been discussed and gone over in detail before with Mr. Lundgren. Mr. Robert Silverman stated he has been working with Mr. Lundgren since May 1988. He stated he did not have all the history of the project, but he has been following part of it. Mr. Lundgren's Aug. 4th letter was responsive to the continued requests from staff asking for his proposal. And, Mr. Lundgren was saying what his proposal was based on Centennial's coamitment. There have been plans, and Mr. Chsserly has made runs on the numbers. He stated the only embers he had seen which Mr. Casserly had concluded in May were not feasible, were based upon the assumption that the City was going to put in an $850,000 parking garage. That garage was not part of Mr. Lundgren's proposal anymore. So, to the extent that Mr. Chsserly' s numbers show that the project is infeasible based upon $850,000 that is not going to be spent, he would suggest that Mr. C`asserly go back and rerun the numbers based upon Mr. Lundgren's present proposal. Mr. Silverman stated that both he and Mr. Lundgren had not seen Mr. Nemzn's letter until 5 minutes before the meeting. Mr. Newman's letter made reference to an earlier proposal from Mr. Lundgren asking the City and the HRA if they would facilitate the financing by helping Mr. Lungren write down the rate, thereby increasing the amount. That was still a part of Mr. Lundgren's wish, but they would understand that if the City could not do that, if the HRA is unwilling to participate, they would have to f ind some other source to do that. They were working on doing that. Mr. Silverman stated they agree that it has been a long time, but they have been working on the project. They finally got the mortgage commitment in late July. As soon as they get one set of parameters, they have to find out what the other parameters might be. Based upon what the mortgage commitment said to then, Mr. Lundgren had written to the HRA and asked them to consider those 9 points. Mr. Silverman stated it was correct that the City and the HRA have the legal right to acquire title to the property essentially after 90 days after filing the petition and quick -take. But, 90 days frrzn August 11th was not October 1, and it was past the date when Centennial has requested that Mr. Lundgren have land control and close. Mr. Silverman stated that at the meetings he has attended, there has been a reluctance on the part of city staff to commit to go out and get the land. Understandably, they want to know a little more about the project, but the City has not even started the condensation procedure. They have asked the -5= HOUSIlU & RIDEVELOM r AUI iORITY MEEMG, AUGUST 11, 1988 City to begin negotiations with the lard caner to find out what the price is going to be, but as far as they know, the City or the HRA has not done that. So, yes, they can put the project together in 90 days easily, but they need the willingness to do it, and it was difficult for the developer to commit himself to close the mortgage in 60 days if the land is not going to be controlled for 90 -100 days. Obviously, without the lard, no mortgage can be closed. Mr. Silverman stated that regarding the road locations, it was his understanding that staff has had detailed full working drawings for some time, and saneone can estimate what the cost of all the public improvements might be. Again, that was part of the proposal, but they have not heard the City or the HRA say, yes, they will do that. Mr. Silverman stated the tax payment for $900 /unit was what the mortgage was processed on, and if the taxes are going to be more, they should know that. They have done some studies and presented then to staff saying $900 per unit per year represents the market. That is going to generate "x" dollars worth of tax increment, and that is either enough or not enough for the City to participate by writing down the land and doing the public improvements. They have not received an answer to that point. Mr. Silverman stated regarding the letter of credit, what was the purpose of tree letter of credit and whether or not it has been served by the thousands and thousands of dollars that Mr. Lundgren has spent on the project and his commitment to the project. Mr. Lundgren has worked on the project for in excess of two years, and he continues to show good faith to continue working on the project. If the letter was there as a good faith deposit to prove that Mr. Lundgren was going to try to canplete the project, he has met that test. Mr. Silverman stated with respect to proceeding with development contracts, they agreed to do that. Mr. Silverman stated that regarding the second mortgage, the present development contract says Mr. Lundgren will give the HRA a second mortgage. They cannot do that under this financing proposal. If the City insists upon a second mortgage and is not going to get enough money from the tax increment this project generates, they cannot do the Centennial financing proposal. Mr. Silverman stated it was discussed earlier that this project and other projects have not yet created sufficient taxes to pay the school districts and to help the bonds. That was true, but the real question was: Was any other developer going to do it any quicker? Mr. Lundgren has put in two years worth of effort. He has full working drawings, full plans and specs, a contractor on board, and a mortgage commitment, even though it is not the best mortgage commitment in the world. He is still saying he wants to do the project. They can proceed to work cooperatively with the HRA and City Staff, but if the HRA says, sorry, the project is over, he did not think the City was going to get a better development, or any development at all, quicker than they would in continuing to work with Mr. Lundgren. MM HOUSM & REDMWPN= AUMORITY NEErUG, AUGUST 11, 1988 Mr. Cartners stated that if Mr. Lundgren is allowed to go forward with the project, he has to obtain sane kind of additional financing in the amount of $2,300, 000. What type of protection would the City have if they authorized Mr. Lundgren additional time to do that, and in the meantime, the City started to take the property? Mr. Silverman stated that was a hard timing question to answer. Obviously, the City would prefer not to acquire the lard until the project is totally put together. On the other hand, the longer time the HRA takes before they acquire the land, the less opportunity Mr. Lundgren has to get financing and to arrange the equity. It seemed to him the City has the opportunity, and it was not inconsistent with other c a-munities that have policies to take a "plighted area" and stir up development by acquiring the land in advance of a development proposal. He did not know if that was the City of Fridley's policy, but it was certainly a way to proceed. It would take a lot of uncertainty out of the project f ran Mr. Lundgren' s standpoint. Mr. Carmers asked if Mr. Lundgren believed that within 30 days he could cane up with sanething to cover the additional equity that is required. Mr. Silveman stated Mr. Lundgren was certainly working on it. Mr. Meer asked why acquiring the land was such a critical point in terms of Centennial having an agreement contingent upon the land being available. Does Centennial always have to have a deed in hand before they sign a commitment? Couldn't they just say, "upon acquiring the land, Mr. Lundgren shall get the mortgage commitment "... ? Mr. Silverman stated Centennial requires this to happen by Oct. 5. Centennial has carmitted a fixed interest rate at 8 1/4%, but they won't carmit it past Oct. 5. Mr. Meyer stated Centennial knows it is going to take the H RA 90 days to acquire the land, yet they are saying they need the commitment in 60 days. What kind of cmmitment is that? He stated he thought Centennial was using this as a play to get out of a commitment. He stated he was very disappointed in the way Centennial has been stringing Mr. Lundgren and the City and the HRA along. He stated he supported everything Mr. Silverman has stated about Mr. Lundgren and his good faith and credit, but he was disappointed in the whole process of things and that this was a never ending game. Mr. Carmers stated that in all practicality, the HRA probably cannot get lard control by Oct. 5. He stated that once before they were very close to owning the property, but they backed away from it when they found the project was not going to go. The HRA was oat interested in awning property and being landlords. Mr. Casserly stated the problem was more serious than was being said. This is mt a market rate mortgage. This is not a problem where they have carmitted funds for a given period of time in which they have gone out to purchase assets. This is for an 8 1/4% mortgage. It doesn't make any -7- H0USIW3 & RIDEUIIDPMENTP AUI iORITY MEET M, MMW 11, 1988 difference if this camnitment ran to Dec. 1, Jan. 1, or Feb 1, because the carmitment was not very meaningful. Mr. Silverman stated he was not deferrling Centennial, and he saw the same problems the HRA and staff were raising. He did submit it was a starting point to see if they can make the project work. Ms. Schrabel asked Mr. Lundgren that if he was unsuccessful in obtaining additional financing in the amount of $2,300,000 by Oct. 5, did he have a contingent plan at that time? Mr. Lundgren stated, yes, he was working on alternate sources of funding but he was not prepared to discuss those at this time. Ms. Schrabel stated it would seen to her that if Mr. Lundgren cannot obtain the additional $2,300,000 by Oct. 5, Centennial's deadline, that Centennial will pull its camlitment, and Mr. Lundgren will be back at square one. Mr. Lundgren stated his two alternate sources of funding would not rely on the Centennial mortgage. Mr. Rasmussen stated he felt this has just gone on for too long a time, and he thought they should terminate the negotiations now. As drastic and harsh as it sounds, he thought it was time to call it quits. Mr. Casserly stated part of the problem with the analysis in terms of trying to determine what is available is that this is a constantly moving target. Originally, when they were talking about taxes being $1,350 -1,100 per unit, they were then talking about a parking structure being in, sometimes utilities are in, sometimes utilities are out, and public improvements. When the suggestion was made that the market rate would only sustain $900 per unit in taxes, at that time the determination was made that the development be responsible for the parking structure, aryl the taxes would be reduced down to the $900 level to try to make this project work on a market rate basis. These are constantly moving kinds of things. It was important to point out that they do not do a new run every time they have a variation when something is suggested. Mr. Casserly stated, more importantly, they have been looking at other options and the developer has been looking at other options, and he has brought a number of people into the process. They had rather an extensive meeting on July 20, 1988, when they were told that the project was going to be short of funds and Mr. Lundgren was going to need sane kind of subsidized interest rate. The prospect was raised at that meeting that a very interesting and very innovative financing scheme be suggested. It was outlined in Mr. Nemen's letter, and it was indicated that the City could not be negative or positive in terms of that package because it was putting the HRA in the position of issuing essentially a $9 1/2 -10 million bond issue and having that be guaranteed. It was an interesting concept, but staff could not see the HRA wanting to get into that part of the financing. Mr. Casserly stated staff suggested, however, that this method of financing -8- HOUSIW7 & RIDEEVELOPM U AUUiORITY MEErnG, AIIGUST 11, 1988 has been done, and if the developer could provide staff with more information on how this would work, staff would be happy to review it and present it to the HRA, because it was thought at that time that the mortgage camnitment was not going to be adequate. However, that information was never received. Maybe staff was a little bit too negative and maybe it was determined by the developer that it was not worth pursuing. Mr. Casserly stated several meetings were held last week and the problem was this simple: The project was $2,000,000 short, and the interest rate was 2 1/4% under market. He just did not know how anyone was going to be able to make up those deficiencies. It might be possible with some kind of interesting participation process which was discussed in March, April, and May. But, it was now August, and they are still looking at potential participation and trying to figure out who is going to finance the project. Mr. Silverman stated he would concur with Mr. Casserly that this is a moving target and was going to continue to be a moving target. If nothing else, at least Centennial mortgage has stabilized one of the moving things, and now it was the responsiblity of the developer to go forward and see what he can do. Mr. Silverman stated that with regard to the innovative proposal, it was a proposal they would encourage if the City and the HRA felt good about it. He would quote from Air. Newman's letter to Mr. Robertson dated July 21: "Both Jim (Casserly) and I expressed in very clear terns our disappointment in this proposal and our belief that in the current political climate and with our current deadlines that we are extremely doubtful that either the City Council or the HRA would approve this proposal. " That was a pretty negative signal free the City. If it was a proposal that was viable and the staff and HRA wanted to pursue it, it would solve a lot of problems. Mr. Canners asked what the status was on Air. Lundgren's letter of credit. Mr. Newnan stated the letter of credit matured on Monday, August 15. Mr. Kevin Jensen, President of the State Bank of Springfield, stated the Bank would be willing to extend the letter of credit to give Mr. Lundgren same additional time to keep working on the project. They have worked very closely with Mr. Lundgren, and it was the Bank's belief that there was potential for this project and that Mr. Lundgren can put the project together shortly. If he did not feel that way, he would not be at the meeting. Mr. Jensen stated that regarding the July 20th meeting, he had obtained a real estate attorney to sit in on that meeting. It was the attorney's recoaut�endation after the discussion regarding the city participation proposal that they should not pursue city participation because of the negative reaction received fran city staff. NDTIDN by Mr. Rasmussen, seconded by Ms. Schrabel, to terminate negotiatons with Mr. Lundgren for the development of the Rice Creek Shopping Center property and to draw on the letter of credit with the State Bank of 3. HOUSIlQG & REDEVIIc)pmE2 P AUDJORnY MEEPitp, AUGUST 11, 1988 have cash in haul immediately, and if the credit can be extended for at least two weeks, it would give them an opportunity to have those discussions. Ms. Schnabel stated if a discussion were to take place between Mr. Lundgren and /or Mr. Silverman and city staff and the HRA attorney, and there was sane proposal for same partial amount of the money to be returned, they would have to cane back to the HRA for a decision. She did not think the HRA wanted to extend that time period for another 30 days. The better solution would be to cash the letter of credit, and then have that discussion in 30 days. Mr. Meyer stated that if they do cash the letter of credit on Monday, the State Bank of Springfield must then proceed against Mr. Lundgren in some fashion which might cause a $200,000 hardship to Mr. Lundgren. If there is an alternate agreement later to ratify less than the $200,000, it seams they might be imposing an additional burden on Mr. Lundgren that he, Mr. Meyer, was mt contemplating when he voted on the motion. He was not eager to add salt to the wound. Mr. Rasmussen stated he felt this was a matter for staff and legal counsel to work out. This was rnt a time to do any negotiating or amending of a motion they had already passed unanimously. If there is a proposal to do something different later, then that was the time to make that second decision. Mr. Jensen stated that drawing on the letter of credit might start some wheels in motion that might be hard to stop that might prohibit any future discussions or negotiations. That action to get the repayment might be a hardship on Mr. Lundgren, and there might be other ramifications. MDTIDN by Mr. Meyer to settle the letter of credit with Mr. Lundgren and the State Bank of Springfield in the amount of $50,000. MTIDN FAILED FOR LACK OF A SEQDND. bir. Newman suggested that Mr. Jensen, Mr. Lundgren, and Mr. Silverman adjourn to the hallway to discuss a proposal to present to the HRA. Mr. Ca►mers stated it was the sense of the HRA that they would be open to some discussions and sane proposals. Chairperson Canners declared a recess at 8:30 p.m. Chairperson Canners reconvened the meeting at 8:45 p.m. ODNSIDERKON OF REDEVELOPMENT PROPOSAL FOR 57TH PLACE: Mr. Robertson stated that in June 1988, the HRA received a proposal and presentation from Winfield Development, and in July, they received a proposal from JLP. Mr. Casserly had prepared an analysis in July which showed that with the information they had at the time, it was going to be a -11- HOUSIi. & REDWEEDME TP AUIHOR=r MUM, AUG[JST 11, 1988 deficit project. They did not see any way at that time that the project would pay back in taxes what would be required for investment up front. The HRA directed staff and Mr. Casserly to work out some additional analyses given updated information from both developers and to come back with some final conclusion on whether this was going to be a deficit project and how much of a deficit project it might be. Mr. Robertson stated about a week and one -half ago, Mr. Casserly contacted him and said his analysis indicated there might be a different number that might be involved in an acquisition of a key parcel. At that time, staff took the initiative to hire a consultant to get an estimate on what the condemnation procedure might be on that key parcel. Mx. Robertson stated he and Mr. Casserly met yesterday morning with one of the developers to get sane clarification on the project. Mr. Casserly finished the analysis last night and was ready to give his report at this meeting. Mr. Casserly harried out copies of his August 11th letter. He stated that because of the questions raised at the last meeting about the numbers used for acquisition and relocation and because the HRA was a little uncomfortable with those numbers, the City's consultant was asked to do a very quick analysis. The fixtures and relocation numbers were averages. He stated the one property that was significantly different was the Rapid Oil property. Before, they were using acquisition and relocation costs of $705 and $725 and now they have that down to $581. On the third spread sheet attached to his letter at the bottan of the page was the number $776,500 ($622,500 for acquisition, relocation costs, and various other costs plus $154,000 for infrastructure, relocation involving water, sanitary sewer, and street) . That was the number he used to determine how much this project could sustain. He stated they would be geting $350,000 for payment of the land. In order for the project to end up with $776,500, additional revenue needed during the life of that district was $412,000. Mr. Casserly stated that if his sums were accurate and they get $350,000 for the lam, the HRA was going to have to put in $412,000, either through special assessments or sanething. Mr. Casserly stated the second spread sheet was the same except in this scenario, there was a $400,000 payment for the land, and if the developer pays $400,000, additional revenue needed was $294,000. The final spread sheet showed what happens if there is a $450, 000 developer payment for the land, then there would be about $176,000 in the district over its life. Mr. Casserly stated he was suggesting this project can zero out and can be designed so there would be no additional revenue required by the HRA. There were a whole variety of things that could happen: (1) they could extend the district by a year; (2) they could get a little larger developer payment or have a well amount of it for special assessments; (3) they could look at a little different inflation factor. He had used a fairly moderate one at 3%. Mr. Casserly stated there was also the possibility that the infrastructure -12- HOUSING & REDEVELOMENT AMHORm mmim, AUGUST 11, 1988 expenses might be less than $154, 000. Public Works gave him a range of $75,000 - $154,000 to work with. Mr. Casserly stated he did not think before that the development could sustain itself because of the higher numbers he was using. So, his recommendation was that the HRA proceed with the project only if the project can be made to balance which would require no outside HRA money- -that it be a self supporting development. Mr. Robertson stated that staff was convinced that either developer probably has the wherewithall and experience to put together a "doable" proposal. As suggested by Mr. Casserly, the desirable course would be for the HRA to pick a developer to proceed with trying to put together a viable proposal that would essentially gay for itself with more specific commitments, give the developer a deadline, and if the developer cannot meet that deadline, then they would go with another developer. Mr. Robertson stated that since both developers were represented at the meeting, the HRA might want to call on then for further clarifications on their thinking about the proposal as reviewed by Mr. Casserly. Mr. Bill Fogerty, Winfield Development, stated they are willing to spend money on this project. He stated they have been very busy with another project, but he felt they had proceeded to do everything the City had required then to do. He stated they do have a bank for the! r maj or tena nt, but it was difficult to get the firm camitment from the bank at this time for sanething they do not have yet. He stated they are dealing with between $11 -13 per square foot, depending upon how much mezzanine area will be on the second floor. Ns. Fogerty stated they have a very high quality, attractive, development for this site, and he did think they would be able to put the project together within three months. Within 45 days they would be willing to propose a $50,000 letter of credit or whatever the HRA deemed necessary. Mr. Joe Carmers, JLP, stated they were very enthused about entering into a definitive agreement for the development of the 57th Place site. They have been very aggressive in working for the City and the HRA. They did all that was required by city staff. They aggressively pursued acquisition and ended up with 67% of the total package, leaving a couple of lots and a duplex that is on the market. Mr. Joe Canners stated that at the last HRA meeting, he had talked about the fact that if the HRA was able to pay cash for public improvements, based on $150,000, it would make about a $300,000 - 400,000 difference. If the public improvements were closer to $100,000, the difference would be even more substantial. Mr. Joe Carmers stated they would request the chance to represent the City of Fridley and the HRA. He stated they have an excellent winning team to put a good project together. They are prepared to do the project quickly and they will stand by a construction schedule of April 1, 1989, and be open -13- HOUSIW3 & RIDEVELDRE Tr AU RORITY N=nG, AUGUST 11, 1988 by October 1989. Mr. Larry Canners asked Mr. Joe Cammers to camment on the numbers Mr. Casserly had presented where the only way this project was going to work was by condemning Rapid Oil and acquiring it for less than $300,000. Mr. Joe Commers stated he would ask Mr. Bruce Peterson, his associate, to speak to that issue. Mr. Bruce Peterson stated they recently discussed this suggestion of the condensation of Rapid Oil. They have done a lot of work with Rapid Oil and are pretty aware of what Rapid Oil facilities cost and what they are worth, both existing and new. They have done these kinds of automotive developments before. It was their opinion that what Rapid Oil is used to seeing is all the way from $8-10 per square foot on these shall parcels of property. JLP really questions the practicality of believing that without just a real battle that these costs can be achieved and that Rapid oil ca n be acquired. It was one thing to be buying vacant land, but it was another thing to be acquiring a business that is successful and making a profit. He stated they just feel the City is looking at a much greater number than these figures show. Mr. Joe Co mers stated they have worked with Rapid Oil since day one in a cooperative manner mt to exclude then, but to include them. They feel it is a moral obligation to accommodate Rapid Oil. They look at Rapid Oil as a favorable business transaction, and they have worked hard with city staff to incorporate Rapid Oil into the development in a very complimentary manner. If it requires a little bit of compromise on where Rapid Oil would be located, they are willing to be flexible, but it was a fact that they were in their present position because Rapid Oil allowed then to enter into an agreement with an option to purchase. Rapid Oil was a private enterprise, and they have certain rights. He stated their loyalties would be severely questioned if they were to tell Rapid Oil they were no longer in the proj ect. Mr. Robertson stated that in the past, both the Planning Commission and City Council have expressed the wish that, given a preference, they would like to see a mrrautanotive oriented business development on this quadrant that sets the tone for the southern gateway to the City, and to have as much property value as possible in there. Mr. Larry Canners stated that since Mr. Joe Ca mers was a relative, what was his responsibility as chairperson of the HRA as far as voting on any motions? Mr. Nevanan stated the State Statute referred to a member of the HRA having sane kind of economic interest in the project; and since Mr. Ommers did not have any economic interest in the project, he could vote on any motions. Mr. Bruce Lundgren stated he would stress that regarding the tenant mix, Rapid Oil was only 8% of their project. He did not think they were that far apart between the two concepts. They recently contacted sane financial 0XIM HOUSM & REDEVELOPMENT AUUiORITY MEET 4G, AUGUST 11, 1988 institutions and received sane favorable cmments. He stated they are very flexible. If the HRA wanted more retail service -type tenants, they would be happy to discuss a tenant mix that the HRA would desire. They were not locked into anyone other than Rapid Oil, and Rapid Oil was a very minor part of the project. Ms. Schnabel stated that having been involved with the City Planning Commission for a good amber of years before becaning a member of the HRA, and having been involved in a lot of discussions on planning for the future of the City of Fridley, as well as working on the Metropolitan Council directed Comprehensive Plan, it was her personal preference that the development for the property fell more in line with that proposed by Winfield Development. That was not to say that the JLP proposal was not a good one, but she did not feel that was the best selection for that particular site. As they look at the entrance to the City off the freeway and as it has been the City's desire for many years to try and upgrade everything along University Avenue and give visibility to the entrance to the City, then the Winfield Development proposal best fulfilled those desires. Mr. Casserly suggested there be a sum of money required from the developer to be used for appraisals, soil borings, etc. He would suggest a stun of $5,000. MOTION by Ms. Schnabel, seconded by Mr. Rasmussen, to grant exclusive development rights to Winfield Development, Inc., for 90 days (Nov. 10, 1988) for the 57th Place Redevelopment; and that on or before Monday, August 22, 1988, Winfield Development pay to the HRA a sum of $5,000 to be used for appraisals, soil borings, and envirormental evaluations. If the payment is not received by August 22, 1988, then Winfield Development will have the burden of doing the necessary appraisals, soil borings, and environmental evaluations satisfactory to City Staff. Mr. Winfield stated he had no problem with this, because they will have to do soil borings aryway and would be willing to share that information to the City. Mr. Nevanan stated he wanted Mr. Fogerty to understand that Winfield did not have exclusive right to the appraisals, soil borings, and environmental evaluation information. That information becomes public information. UPON A VOICE VOTE, SCHNABEL, MEYER, RASMUSSEN VOTING AYE, COMMERS PBSTAINING, CHAIRPERSON CDMkJERS DECLARED THE NDTIDN CARRIED. Mr. Larry Canmers stated that since he felt it was in the HRA's best interest for him to refrain fran voting, he wanted both developers to know that it was also his preference that Rapid Oil not be included in the project. All the remarks made by Ms. Schnabel were apropos. Mr. Larry Carmers stated the HRA certainly appreciated the work and expense put into these prcposals by both developers. -15- HOUSM , & REDEVELOP 41M AUIHORM MEETI bG, AUGUST 11, 1988 4. CDNSIDERATIDN OF RESOLUTIDN AM MnU CIVIC C &IrM TAX INCRaENr DISTRICT TO INCLUDE PLAZA RAMP: Mr. Robertson stated the question about the HRA using tax increment funds for the construction of the Civic Center parking ramp was put to Mr. Jim O'Meara. In Mr. O'Meara's first reply dated July 25, he made an assumption which proved to be in error in terns of the time the bonds were sold. He corrected that in his August 5 letter in which he stated: "It also appears now that the concept is that the H RA' s cost under this program would be funded at least in part from excess proceeds of the 1985 tax increment bond." Mr. Robertson stated that after reviewing this opinion with Mr. Newnan, they both believe that (1) yes, the HRA has the basic legal authority to construct this parking ramp; (2) yes, the HRA can pay for these expenses out of tax increment; and (3) yes, the expenses can be financed through the issuance of a tax exempt increment bond. Mr. Robertson stated Mr. O'Meara further stated in his August 5 letter: "..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 clone without any prnblsms. " Mr. Robertson stated they will probably need Mr. O'Meara's assistance to guide then in subsequent actions. Mr. Robertson stated Mr. O'Meara had drafted a resolution for the HRA's consideration (agenda page 3 -F) . In anticipation of the next item (Consideraton of Bids for Construction of Plaza Ramp) , he would point out that the number under 111. Recitals, (f)" should be changed fran $785,000 to $840,000. Mr. CoRmers asked why Mr. O'Meara had stated in his letter that if the HRA was getting rent from the office building, that raises questions about tax exempt f inancing. Mr. Casserly stated it had to do with the percentage as it relates to the debt service of the mortgage. If more than 10% is used for private business, then it fails the private purpose test. He did not believe this was a problen in this instance. At the time the bonds were issued, the formula was 25 %, and the amount of rent they are paying was a very small sun, and not under any circumstances would the amount the office building was paying support any more than 25% of the debt service on that issue. Mr. Ccumers stated this also raised the question (regarding Mr. Newman's August 2, 1988, letter, agenda page 5) that if the HRA refuses to subordinate the second mortgage or if the HRA refuses to give the office building the refund being requested of $81,000 under the Lease Guarantee Fund, would that have any bearing on this project? Mr. Neaman stated that in all their discussions, it was simply that since the City would be leasing 9,000 sq. ft. from the office building for a year, 0 V HOUSIlW, & REDEVEtDPME U AU'IIHORITY ME nG, AUGUST 11, 1988 the office building will agree to waive any condemnation claims with the construction of the ramp. Mr. Robertson stated it was staff's recanmendation that the HRA adopt the resolution and move forward. NDTIDN by Ms. Schnabel, seconded by Mr. Meyer, to adopt Resolution No. 2 to include the Fridley Plaza Parking Ramp within the Tax Increment District, with the amendment to 1.(f) to reflect $840,000 worth of estimated costs. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CDMMERS DECLARED 'IHE MOTION CARRIED UNANMUSLY. 5. CDNSIDERATIDN OF BIDS FOR ODNSTRUC rX)N OF PLAZA RAMP: NDTIDN by Mr. Rasmussen, seconded by Mr. Meyer, to accept the bids for the Fridley Plaza Ramp Budget/Bids, August 1988. Mr. Meyer stated he had looked over the plans and specifications and, in his opinion, they were well done and very canplete. They seemed to reflect the type of control the HRA has talked about that the architect make the ultimate decisions. Mr. Rasmussen stated a question he had was regarding security in the ramp. Mr. David Kroos stated the lighting level inside the ramp would be the first concern for security, and that was adequately covered. The other thing talked about at a previous meeting was the consideration of some painting inside the ramp to increase the light level. This was an item they were not able to get into the base bid package because of the timing, but was certainly sanething they could do in the future. In addition, they have talked about placing security cameras inside the ramp wired to the Police Department, so that was an option. He stated they do have one camera located at the lobby point to the lower level, but there are no cameras actually placed inside the ramp that are wired to the Police Department. Ms. Schrabel suggested the possibility of cameras being placed at any point where people would access the laver level of the ramp. She, too, was very concerned about security in the ramp. She stated as a wanan, it was a terrible thing to park and be afraid. And, no matter where she parks, she is afraid. Mr. Jim Hill, Public Safety Director, stated the H RA members have to real iz e that, obviously, anything is possible, but this is Fridley, not Minneapolis, and this is only a one level rump, not a multiple level ramp. There will be high visibility throughout the ramp. There is a main entryway into the building so there will be cars caning and going constantly, so the need for security was much less than it would be for a multiple level ramp. He stated they will certainly take all the security they can get; however, the big problem is the manpower to watch the monitors. Was the City or the HRA prepared to hire additional enplcyees to watch the monitors? -17- HOUSING & REDWEWPMENP AUIIHORITY MEETIlU, AUGUST 11, 1988 Mr. Meyer suggested an alternative of shriek alamis in lieu of cameras. Mr. Caterers stated it seemed to be the sense of the HRA that they would like to -make sure the security is maximized as much as possible. They were approving the bids as presented, but if it was going to cost more to increase security, they would like to look at those figures. Mr. Hill stated there was no question that security would be increased to whatever level the HRA wanted to pay for it. Mr. Caterers asked Mr. Robertson to work with Mr. Hill and the architects to work up sane options for security, and to bring back options and costs for review by the HRA. USN A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CDM@ FM DECLARED IIHE NOTION CARR.IM UNANINDUSLY. Ms. Schrabel stated there was still the issue of if the ramp opens only into City Hall, did it meet the criteria for the use of public monies, or must there be access to the adjacent office building? Mr. Robertson stated there is a stairway that is available to the office building, and that does meet the criteria. 6. FURMER CDNSIDERATON OF LOU LUNDGREN' S LETTER OF CREDIT: Mr. NeAmn stated that based on a discussion with Robert Silverman, Mr. Lundgren's attorney, he would recatenend that, conditioned upon the HRA staff receiving a certified check in the amount of $25,000 on Monday, August 15, and further conditioned upon Mr. Lundgren and the HRA exchanging full and complete releases for any and all claims that either party might have against each other, the HRA will agree not to take any further action on Mr. Lundgren's letter of credit and that the HRA will release the letter of credit. NOTION by Mr. Rasmussen, seconded by Mr. Meyer, that the HRA agrees not to take any further action on Mr. Lundgren's letter of credit and that the HFA will release Mr. Lundgren's letter of credit, based upon the following two conditions: 1. The HRA staff will receive on Monday, August 15, a check in the amount of $25,000 fran the State Bank of Springfield; and 2. Mr. Lundgren and the HRA will exchange full and canplete releases for any and all claims that either party might have against each other. Mr. Silverman stated this was agreeable with his client, Mr. Lundgren. URON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONIITER.S DECLARED IIi E NOTION CARRIED UNANDDUSLY. 7. CONSIDERATION OF SUBORDINATING THE HRA'S SECOND MORTGAGE ON THE FRIDLEY CHO HOUSIlG & RIDEVELA)EM I' XMORIW MESTM, RMST 11, 1988 PLAZA OFFICE BUILDIW: Mr. C'amers stated the members had a copy of a letter fran Dave Newman to Jock Rcbertson dated August 2, 1988, stating that the owners of the Fridley Plaza Office Building are asking the HRA to subordinate their second mortgage of $39,999 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 to which the HRA's second mortgage is subordinated. Mr. C,atmlers stated the Office Building has also asked the HRA to authorize the release of funds held in the Lease Fund and Purchase Fund to the building owners. There is approximately $81,000 in the Lease Fund, and approximately $16,000 in the Purchase Fund. Mr. Canners stated as he understood it fran Mr. Newman's letter, the Purchase Fund was really not of any value or use to the HRA. The Lease Fund was a little different. In his letter, Mr. Newman had stated that the purpose of the Lease Fund is to provide to the Trustees a form of security to ensure that -the building owner makes timely rental payments on the parking lot. While the Indenture of Trust was not clear as to whether or not the HRA can require the disbursement of funds fram this Fund for the purpose of making delinquent rental payments, in the past when the HRA attempted to use this fund for the payment of delinquent parking lot rent, the Trustee refused to release the funds to the HRA. Mr. C'armers stated he had no problem with the subordination of the second mortgage, and the Purchase Fund was sanething the HRA really did not have a right to anyway, but he did not know if he agreed with the release of the Lease Fund. He did not have enough infomation to make a good judgement on it. Mr. Nemian stated he has read portions of the bond document pertaining to these funds, and it doesn't specifically state that the landlord has the right to those funds. Mr. Newman stated staff was looking at this fran the perspective that the office building is in trouble, and they would like to accommodate and help then as much as possible. Mr. Rasmussen stated he did not like to see the HRA release funds of any kind, and he would abstain fran voting on any motion that would release any funds. NDTIDN by Mr. Nleyer, seconded by Ms. Schnabel, to agree to the subordination of the HRA's second mortgage with the Fridley Plaza Office Building and to agree to the release of funds held in the Purchase Fund in the amount of $16,000 and in the Lease Fund in the amount of $81,000 to the owners of the Fridley Plaza Building. Mr. Caterers stated he thought the way this has came up at the last minute just before the closing on Monday caused him to be very skeptical. He -19- HOUSIM & REDEJE[OPMENr ALTMRITY MMIM, ALUM 11, 1988 r stated the HRA should have been told earlier and given time to look at this more thoroughly. It was not fair and not appropriate and was not the way to do business. It was almost like a leverage -kind of thing -- either the HRA releases the funds or the sale will fall apart. Again, he was not against subordinating the second mortgage or the release of the $16,000, but he was against the release of the $81,000. Ms. Schrabel stated if the HRA was to turn dawn the motion and not release the funds at this point, the sale might fall through; but then, it might mt. It might encourage the owners to cane to the HRA with a stronger case. She shared Mr. Oomner' s concern, and she was uncanfortabl e with this whole thing. Mr. Rasmussen stated he was opposed without more information. MR. MEYER WITHDREN HIS NDTIDN, WITH THE MNSENr OF MS. SCHNABEL. Mr. Conamers stated if the HRA does not agree to subordinate, in order for the owners to close on the property, they are going to have to pay off the mortgage and pay the HRA $40,000. Mr. Newnan stated the HRA had to realize that if the building went into foreclosure, the HRA could lose the whole amount. Mr. Newman stated that, as he understood it, the HRA was looking for verification of the amounts, the source of funds, and the original agreanent for those funds. Mr. Newnan stated he could understand the HRA's concerns. He did think, though, that some of the questions the HFA was raising were separate frcm the issue pertaining to the subordination of the mortgage. The building owners could close in escrow, but he suspected they would have a harder time closing if the HRA doesn't indicate any interest in subordinating the second mortgage. Mr. Rasnussen stated he just did not think the $40,000 was going to make or break the deal. 8. UPDATE ON 111nE CDTrAGFS" DEVELOPMENT PROPOSAL: Mr. Robertson stated this was an information item. He stated in order to proceed with an economic analysis, staff was in the process of analyzing the four itans listed in his mono dated Aug. 4: (1) the tax I.D. numbers 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) the developer's estimate of what they believe the market rate real estate taxes will be without the use of any assistance; and (4) evidence of site control. Mr. Robertson stated the question that was raised in July was the financial ability of Arkell Corporation. He had included a letter of intent fran Equitec Properties to enter into negotiations to became the cc- developer or owner of Arkell Cottages. -20- HOUSING & REDEVEL pmg AgwoR1TY MEEri%, AUGUST 11, 1988 Mr. Robertson stated Ms. Carol Slavick and Mr. Mark Clemens frcm Arkell Corp. were at the meeting to answer any questions. Mr. Robertson stated it was staff's recammendation that staff work with the developers between now and the Septenber meeting, and upon favorable review by the HRA, staff will draft up a development agreement. He stated he had included sane site plans of the proposed layout for the two locations in the H RA i of orna ti on packet at the meeting. Mr. Rasmussen stated he would like to request more information on Equitec Corpora ton. Mr. Robertson stated Jim Hill, Public Safety Director, had raised the question about whether storn shelters would be provided on both sites. Ms. Slavick stated storm shelters would be provided at both sites. They have 92 units planned for both locations, and one unit on each site will be a catmunity center with a basement underneath it. Mr. Hill stated the City has specifications for store shelters, and he would like them to check into those specifications. Mr. Camers stated there has always been an access prcblen on Hillwind Road, and he did not know if there was a solution to that problem or not. Mr. Robertson stated that regarding the traffic and access concerns, the access to Hillwind Raid will be improved when the intersection at Highway 65/Old Central is improved. Staff also feels that because of the age of the tenants (55 years of age and older) they wi11 not generate as much peak hour traffic as the normal townhouse tenant mix would. Ms. Slavick stated the purchase agreement for the Hillwind property has been signed and will be put together the next day. Everything has been agreed upon by both parties. Ms. Slavick stated they have a $300,000 estimate on soil correction costs on the Rice Creek Road property. Mr. Robertson stated they anticipate having enough information for this to be an action iten at the next meeting. 9. ESTIMATES NDTIDN by Ms. Schrsbel , seconded by Ms. Feanussen, to approve the f of 1 ow i ng estimates: Talberg Lawn & Landscape - $4,580.36 Solidification, Inc. - 2,293.92 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GD14VIERS DECLARED WE NDTION CARRIED UNAN DOUSLY. -21- HOUSI% & REDEVELOPMETTI' MMORM -f MEETIlG, AUGUST 11, 1988 10. CLAIMS (1785- 1795) : MOTION by Mr. Rasmussen, seconded by Mr. Meyer, to approve the check register as submitted. UFON A VOICE: VOTE, ALL VOTING AYE, CHA =TER N MNZIERS DECLARED WE DDTION CARR=) UNANDDUSLY. AnMUIW=- T: Chairperscn Comers declared the July 14, 1988, Housing & Recdevelogment Authority- meet ling adjourned at 11:20 p.m. Respectf "Iy submitted, Ly nnE sah'.a - — -- =,ecorc rx. Secretary -22- -71t LIN eF D 6 j2-t.= i-A r-c-LLLn6-& te -7-1> y 6 Cp.,zri Ct- psc C,gzU Pz,.: T)AVI D 94'c*,-S OAJ tl 1 HEFJWK & NEWMAN P.A. ATTORNEYS AT LAW September 1, 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: Fridley Plaza Office Building Parking Lot Lease Dear Jock: Enclosed you will find the proposed amendment to the Parking Lot Lease for the Fridley Plaza Office Building. I would request that you place this on the HRA agenda for action at its September meeting. As you will recall, the Fridley Plaza Office Building currently has a Lease covering the municipal parking lot. Included in this Lease is an option permitting the office building partnership to purchase a portion of the parking lot at the end of thirty (30) years for the sum of $100,000.00. This Lease creates two (2) problems for the HRA in relationship with their plans to construct the municipal ramp. The first problem is that during the time that the ramp is being constructed, the office building partnership will be denied use of a majority of the parking lot. Secondly, in the year 2012 the office building would also have the right to purchase a portion of the parking ramp for the sum of $100,000.00. In conjunction with these issues there is the additional factor that during remodeling of the City Hall, there would be less disruption to staff if a portion of the City staff could temporarily relocate. As you are also aware, the Fridley Plaza Office Building is approximately thirty percent (30 %) vacant and the property is in foreclosure. Consequently, at the direction of Mr. Qureshi I negotiated the following arrangement with representatives of the Fridley Plaza Office Building Partnership: 1. Their Lease on the parking lot would be extended from a thirty (30) year Lease to a ninety -nine (99) year Lease. During the entire term of the Lease payments would continue to run at the amount of $800.00 per month. Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612 -571 -3850 lA Jock Roberson September 1, 1988 Page Two 2. That the office building partnership would waive their option to purchase a portion of the parking lot at the end of thirty (30) years. Rather, at the end of ninety -nine (99) years they will have the option to purchase a portion of the parking lot for the then fair market value. A major change however, is the fact that the portion of the parking lot which they now have the right to purchase does not include the parking ramp. Obviously, while none of us can predict that this building will still be standing in ninety -nine (99) years, the owners had a valid concern that they did not want their successors in interest at some point in the future to be owning a building without any parking. 3. The City would lease from the office building partnership approximately 8,000 square feet of office space for a one (1) year period for the aggregate sum of $80,000.00. This is approximately $9.00 per square foot and is approximately $4.50 a square foot less than the other tenants are paying. The landlord will not make any leasehold improvements -and has the option to terminate a portion of the City's lease on ninety (90) day notice. In such an event, the amount of rent owing would be reduced proportionately. 4. The office building partnership would waive any claims in condemnation or otherwise against the BRA and the City arising out the temporary taking of the parking lot for construction purposes. It is my recollection that on several occasions in the past you have reviewed these terms with the BRA and they have formally indicated their consent. During those discussions you also informed the BRA that the intent would be that the City would pay $40,000.00 of the lease payments and the BRA would pay $40,000.00 of the lease payments. The reason the BRA would be paying one -half of the rent is due to the fact that as a result of the office space lease, the office building partnership is willing to amend the Parking Lot Lease and is willing to waive any claims for disruption to the parking lot. 18 Jock Robertson September 1, 1988 Page Three At the next meeting of the HRA you and Mr. Commers should be specifically authorized to execute this Amendment to the Parking Lot Lease. The HRA should also agree to reimburse the City for one -half of the rent payments incurred in the office building lease, not to exceed $40,000.00. Sincerely yours, avid P. N4 an DPN:jeb Enclosure (copy of Amendment to Leasehold Agreement) RESOLUTION NO. HRH 1988 RESOLUTION APPROVING AN AMENDMENT TO THE LEASEHOLD AGREEMENT BETWEEN THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY AND THE FRIDLEY PLAZA OFFICE BUILDING PARWERSHIP IT IS HEREBY RESOLVED by the Board of Commissioners (THE °BOARD °)of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota ( the °Authoritya), as follows: 1. On the 20th day of September, 1982, a Leasehold Agreement was entered into between the Authority and the Fridley Plaza Office Building Partnership (the Partnership which Leasehold Agreement requires the Authority to provide to the Partnership the nonexclusive right to a 166 car parking lot and further provides that the Partnership shall have the option to purchase the Leasehold property at the end of 360 months for the sun of $100,000. 2. The Authority has wishes to construct a bi -level parking ramp on the site of the parking lot which will impact the Partnership's parking arrangements and subsequent purchase option. Consequently, there has been prepared and presented to the Board a corresponding amendment to the above - mentioned Leasehold Agreement. 3. The City of Fridley will lease from the Partnership approximately 8,000 square feet of office space for one (1) year for the aggregate sun of $80, 000. 4. The BRA has agreed to pay $40,000 of the lease payments in consideration of the Partnership's willingness to amend the Parking Lot Lease and willingness to waive any claims against the BRA for disruption to the parking lot. 5. The Board hereby approves the Amendment to the Leasehold Agreement and authorizes the Executive Director and the other officers and employees of the Authority to execute the Amendment to the Leasehold Agreement substantially in its present form, but with such minor amendments, deletions, or insertions as such officers may deem necessary or desirable, as evidenced by their execution thereof, and the Board further instructs such officers, upon the full execution of the Amendment to the Leasehold Agreement, to take such actions as may be necessary to effectuate and implement the terms thereof. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY THIS _ DAY OF 1988. LAWRENCE R. CONNERS, CHAIRMAN ATTEST: JOHN L. RCBERTSON, EIBCUTIVE DIRECTOR 1C 2 Virgil C. Herrick August 2, 1988 David P. Newman James D. Hoeft Gregg V. Herrick 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. /� r Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612 -571 -3850 Jock Robertson August 2, 1988 Page Two Finally, the building owners have asked the HRA 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. O °riginally, 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. incereCen , David DPN:jeb Enclosure cc: Leonard Juster 2A 0 F. K & NEWMAN PA. ATTORNEYS AT LAW September 1, 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: Fridley Plaza Office Building Dear Jock: As you will recall, prior to the last HRA meeting we were approached by the owners of the Fridley Plaza Office Building. They made the following inquiries: 1. Would the HRA be willing to subordinate its second mortgage in the amount of $39,999.00 to a new first mortgage, providing that this new first mortgage does not exceed the original principal amount of $1,500,000.00; 2. For our consent to the release of the Lease Fund to the building owners; and 3. Our consent to the release of the Purchase Fund to the building owners. Enclosed for your reference you will find a letter dated August 4, 1988 from Andrea M. Machmeier, wherein she has made the same request on behalf of the Trustee. At the last meeting of the HRA it was my understanding that the Commissioners were comfortable with the subordination but had not yet made a determination on the question of releasing the Lease Fund and Purchase Fund. Consequently, on August 17, 1988 I made an inquiry of Ms. Machmeier in which I sought those items which were requested by the HRA. On that same date I contacted Larry Commers and further explained to him why I believe that the HRA did not have any interest in either of these funds. On August 18, 1988 I received a response from Mr. Commers in which he indicated that he did not believe that it would be necessary for us to obtain a bond opinion as long as Briggs and Morgan informed us that they would release the HRA from any claims. Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612- 571 -3850 Jock Robertson September 1, 1988 Page Two Also on August 18, 1988 I received a letter from Al Malmon in which he outlined the source and use of the various funds involved in this closing. In a telephone conversation with Al Malmon on August 31, 1988 he informed me that the Trustee will no longer be seeking the consent of the HRA to the release of the Lease Fund and Purchase Fund. Consequently the only item which the HRA needs to act upon is the initial request to subordinate our second mortgage to the new first mortgage, providing that this new mortgage does not exceed the principal amount of $1,500,000.00. For the same reasons which I outlined in my letter of August 2, 1988 I would recommend to the HRA that in fact they consent to this subordination and authorize you and the Chairman to execute any documents necessary. incerel yours, avid P. an DPN:jeb Enclosures cc: Leonard Juster 2C O'CON NOR & HAN NAN ATTORNEYS AT LAW Suite 205 6401 University Avenue, N.E. Minneapolis, MN 55432 Re: Fridley Plaza Office Building Dear Dave: 2D M,_ "Bey' 1`s[Irc'a 3800 IDS CENTER r"[M Rostov IL JASK002" a4,mom 90 SOUTH EIGHTH STREET R w 9 *& �a MINNEAPOLIS, MINNESOTA 58402-2234 JJ1111C[ NB�L TMOMAbe w. eMyi.NAMK ReetwT A. pwtt601� :rmm N~% wlM ':r mm 16121 341-3800 K "Aftes C. ame el IM I(N J01O/ W. ► /IIAMtJIFmciwD TELEX 29-0384 ANT a sTTwrD1D1 •COMAS D. dK1m1tOM rotR�tl . AL6ER/ L PtpLIN TELECOPIER 16121 343-1238 LAWRENCE A.O. 1gLOMCT T L TNCOnoRE R. O" =Sa bLM a. KU N LMAM fMUMfF c �°I INCUDING THE FORMR FIRM MACINTOH 6 COMMERS Pi cooPC WILLIAM C L./ eroio OtANMC M. ORECO TWORRM• • •••••••• ome[ MRp�p wos rz[� sW' M Do ° KLAtaLt 12A00 PORT LAM° AYCNUL bOnt DPJ e0yTC ON( Ytilf[0 eANe C[MTCR 00 PENNSYLVANIA JWEMOE M.W. MADRID 1- N 1100 LINCOLN bTRC[T WA4MIM0TpM, D.C. 20006.1.°7 AS111 -00 BYRNbwLIL MINNESOTA °5117 16016W .6 O 030 a CO 00 .b.7 12021 X7 1.00 TLlC1 239.1 8101'!00 1[L[COPItR TILLC T[L[COPI[R 11021 AOO 2106 flu 13031 ISOSI 6100601 DIRECT DIAL NUMBER « 02 COUNSEL JOHN J. FORM 343 -1123 DwnD 61/RLIMDAMC• [L M WLLA M 9%6 1 August 18, 1988 David P. Newman, Esq. Herrick & Newman, P.A. Suite 205 6401 University Avenue, N.E. Minneapolis, MN 55432 Re: Fridley Plaza Office Building Dear Dave: 2D off LIMCIM IANNE (A- TLC• RLTRICM J. OCOCOOb• ONRO C. 9• T• Rostov MI, WAL�CR- 11Y • � O A. !1!S(R•NOp .MOT MEMBER O( MINNESOTA BAR I have your letter of August 17, 1988. The letter you referenced as being sent to one of the attorneys representing the Trustees was not enclosed. In reviewing the Briggs & Morgan letter of August 8, 1988 to Alvin Malmon and the excerpts from the Fridley Indenture of Trust, it would seem to me, personally, that if all rents have been paid and are currents that if in fact the bonds are being redeemed= and if you are able to get a release of the HRAs there would be no reason why we can object to the release of the Lease Fund to the Trustee. Further, with this additional information, I would be satisfied without the need of having to seek an additional opinion of bond counsel. V t my , Lawre a R. Commers LRC /rj cc: Mr. Jock Robertson HRA Members M,_ AMDII[MI A A DOWN-' JJAP -' R[ OKM(• =LL OrMl1NCYe- O. �AO'°j•�j�� am. C. M..[1 MMINe• C. AN°IL P 11°AA l[TTA• /1Te AOTT .MJO5EP11J:aG� J�TCM�ORO• MARY T OU[er• MARY ours'. JowM � wtw• ., e J. Ru nr 6611DOM LL[• 1OlOT1/T M. NAA11C• Li016LA1R1[ C'OOR01MA1011 111CMALL COLOPT• MICMACL J.,CRRCLL• OLOR6E J. MANMIN� JR.- Joan J. MCOCRMOT • WILLIAM T. MANMAN SO. 100.19051 off LIMCIM IANNE (A- TLC• RLTRICM J. OCOCOOb• ONRO C. 9• T• Rostov MI, WAL�CR- 11Y • � O A. !1!S(R•NOp .MOT MEMBER O( MINNESOTA BAR I have your letter of August 17, 1988. The letter you referenced as being sent to one of the attorneys representing the Trustees was not enclosed. In reviewing the Briggs & Morgan letter of August 8, 1988 to Alvin Malmon and the excerpts from the Fridley Indenture of Trust, it would seem to me, personally, that if all rents have been paid and are currents that if in fact the bonds are being redeemed= and if you are able to get a release of the HRAs there would be no reason why we can object to the release of the Lease Fund to the Trustee. Further, with this additional information, I would be satisfied without the need of having to seek an additional opinion of bond counsel. V t my , Lawre a R. Commers LRC /rj cc: Mr. Jock Robertson HRA Members LAW 01rrICE3 9XXTN. JUST88, F]3=ZXA, MALMON & HsSSVXTZ A PARMILF48 IIP Or PROMBSIONAL CORPORATIONS SNrra. JCWTM26 P*ZKZWA. NAM= & BASERlZ Na"Unr 6 S!6lio%4 QaAR"3Ma au►RTCSo 1000 IDS CENTER SUITE 101 • . 00 SOUTH ZIGHTH "RttT edw UNIVERSITY AVENUE, N. E. 14MUCAPOUS. MINNESOTA 554M RRIDLEY, MINNESOTA 554= TELEPHONE (SIR) 330 -640I TELEPHONE ISM 571.6670 VAX 4610 340 -0055 CARL J. NEMIOUIST S AN SMITH, BRIBED LEONARD T. JUSTER S. 1MILLUIN tKSTRUM HENRY H. rtIKEMA ALVIN S. MALMON 07 COuNa[L RONALD L. HASKVITZ DOUGLAS J. PETERSON JOHN M. 610LIN J. CHRISTOPHER CUNEO STACEY A. ORKAL6 August 18, 1988 001COLZ E. NEt JOEL W. LAVINTMAN JAMES M. LOCKHART BRAD /ORD COLSERT David P. Newman, Esq. Herrick & Newman, P.A. Suite 205 6401 University Avenue N.E. Fridley, Minnesota 55432 Dear Dave: I am enclosing for your information a document which I have prepared for the partners of the Fridley Partnership, indicating the cash required at any closing of the sale of the Fridley Partnership and the cash available to make those payments as of July 31, 1988. The numbers of the funds required will increase by about (15,000 a month for delinquent interest through September 30, 1989, and our taxes will increase by approximately 59,000 as a result of having to pay another month's taxes, not having closed on August 1st. As you can see, for each month each of these numbers would go up. With regard to cash provided, because we have had an increase in interest rates since July 31st, some of the assets in the various funds have gone down in value, but not by an major amount. You will note that at the closing as of July 31st, it appeared as though the owners had to put up an additional $137,000 out of their own pockets, in cash, to close the transaction. We now believe that that number as of September 1st will be over $150,000 and will go up by about $15,000 a month for each month thereafter that we do not close. In addition, we will lose all our initial investment in the property, substantial additional contributions of capital provided to fund cash flow shortages during the six years that the property has been owned, etc. Needless to say, it has been a disaster. I hope that these numbers will be made available to the HRA and to the City to demonstrate that we really must have the Lease Fund and the Purchase Account Fund released in order to complete this sale. If we do not complete this sale, the alternative would be foreclosure. In that event, as you so aptly said in your previous letter to the City, the second mortgage of the HRA would be wiped out. We agree with your position that the HRA will be in a better position with a property that has no liens against it for back taxes and assessments, and a mortgage of only $1,300,000, rather than a mortgage of $1,500,000. David P. Newman, Esq. August 18, 1988 Page 2 We want you to know that we appreciate your cooperation in thi s there is anything further you wish to know within the scope of we shall be happy to provide you with that information. If yo u be advantageous to have Lenny Juster or I make an appearance a t 8, 1988 HRA meeting, we would be pleased to do so. Yours very truly, Alvin S. Malmon ASM /dah Enclosure matter. If what we know, think it would the September %P 0 „r HERRICK & NEWMAN P.A. ATMWEYS AT LAW August 17, 1988 Virgil G H"Tkk David P. Newman Gregg V. Fwwd k Andrea M. Machmefer ° Briggs and Morgan 2400 IDS Center Minneapolis, Minnesota SS402 RE: Fridley Plaza Office Project Dear Ms. Machmeier: '4� On August 4, 1988 you made an inquiry of Virgil Herrick of our office in which it was requested that the Fridley BRA would authorize the release of all funds in the Lease Fund and Purchase Account on the above Project. As counsel to the.Fridley BRA I presented this request to them at their August 11, 1988 meeting. At that time the BRA declined to take any action on this request until additional t m information was provided to them. It is my understanding a y Memo of August 12, 1988 cfsthiseMe obeen provideddfor your James review for his review. A copy as well. It is the intention of staff to attempt to gather the infor- mation requested so that it can be resubmitted to the BRA for consideration at their next meeting on September Or 1988. For this purpose I would request the following information: 1. The basis upon which the Trustee is requiring the BRA to consent to the release of the Lease Fund and the Purchase Account. In my review of the bond documents I have not come across any requirement that the BRA consent to the release of these funds. In fact, in the past when we have attempted to direct the Trustee to release certain funds frdm the Lease Fund for the purpose of paying back rent, the Trustee declined to do so. In light of the fact that in the past the Trustee has totally ignored our request I am now at - a loss to understand why the Trustee is requiring our consent to this transfer. 2. An itemization of the current balances in both of . these funds. This itemization should include a description of each contribution and an indication as to the amount of interest which has accrued in each account. Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612 -571 -3850 K-fl 2I ll RWK & l � PAS ATTORNEYS AT LAW August 17, 1988 Da P Neffln n James D. Hoeg Gregg V. Herrick Lawrence Commers O'Connor and Hannan 3800 IDS Tower Minneapolis, Minnesota 55402 VIA MESSENGER RE: Fridley Plaza Office Building Dear Larry: I am writing to you as a follow -up to the last meeting of the BRA. At that time the Commissioners discussed certain requests being made by the Fridley Plaza Office Building Partnership. In response to certain questions which were raised, Jock Robertson and myself are attempting to obtain additional information. Enclosed for your reference you will find a copy of a letter which I have recently sent to one of the attorney's representing the Trustee. An additional question raised by the BRA was whether or not the bondholders were going to be paid off in full. Enclosed is a letter dated August 8, 1988 from counsel to the Trustee to Mr. Al Malmon in which the terms of the sale of the building were reviewed. It is apparent that the intention of the Partnership is to be pay off the bonds in full and the Trustee appears willing to accept this proposal. There are two issues which I believe cause the Housing Authority the greatest amount of concern. First, whether t1}te BRA has any right to any of the monies contained within the Lease Fund. Secondly, whether the BRA is exposed to any liability from the bondholders by consenting to the release of these funds. In my letter to Ms. Machmeier it is obviously our hope that the Trustee will agree to release the BRA and thereby make it abundantly clear that the HRA will not be incurring any liability by consenting to release these funds. As to the second question, I have attached photocopies of Sections 407 and 411 of Fridley Indenture of Trust between the City of Fridley and Marquette Bank. You will note that in Section 407 there is a provision that any amounts in the Lease Fund in excess of 570,000.00 -may be disbursed directly to the Partnership upon Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612 -571 -3850 Lawrence Commers August 17, 1988 Page Two verification that all rent payments are current. Further, it provides that in the event of a foreclosure sale all amounts on deposit in the Lease Fund shall be transferred to the Trustee and will then be disbursed pursuant to Section 405 and Section 605. You will note that Section 407 does not make any provision for disbursement to the Housing Authority. I would also like to direct your attention to Section 411. It indicates that after the bonds have been paid in full and charges, fees, and expenses related thereto have been paid that any amount remaining in the Lease Fund shall be paid to the Partnership. My question to you is whether or not this information is-, sufficient or if you still wish to obtain the opinion of bond counsel. My concern is that to obtain an opinion of bond counsel will obviously require some time and the expenditure of some funds. In light of the release which we have requested from the Trustee together with the language contained in the Indenture, I do not believe that this opinion is necessary. However, I also want to make sure that the BRA has all of the information they require so that they can act upon this request at their September 8, 1988 meeting. I would appreciate receiving your response at your earliest convenience as to whether or not you still would like to obtain the opinion of bond counsel. If I am unavailable you need only leave a message with my secretary. Joan Black. I should also add, that in light of the fact that Mr. O'Meara works for Briggs and Morgan who represents the Trustee, I intend to contact Mr. Kent Ritchie for the purposes of obtaining this opinion. Sincerely yours, David P. Newman DPN:jeb Enclosures ccs Jock Robertson 2J PROJECTED JULY 31 NUMBERS (TO PAY BONDS OFF SEPTEMBER 1, 1988) A. Cash Required 1. Bond Principal 2. Legal Fees (Briggs & Morgan, trustee's counsel) 3. Appraisal 4. Redemption Costs (est.) S. Delinquent Interest (through September 1) 6. Interest on Interest (to September 1) 7. Prepayment Penalty (to be waived)* 8. Assessments (To be paid off at closing) 9. Taxes (1987 + 1/12 of 1988) (est.) Less: Waived Prepayment Penalty* 10. Real Estate Brokerage Commission Cash Required B. Cash Provided 1. Construction Fund 2. Bond Fund 3. Reserve Fund 4. Lease Fund 5. Purchase Account. 6. Cash Balance (as of July 31, 1988) After Collection of all Receivables and Payment of all Bills (est.) 1 $1,410,000 32,000 4,500 2,500 168,369 5,000 42,300 37,000 107,000 $1,808,669 42,300 $1,766,369 5_ 0,000 S1 816 9 $ 310 3,500 101,000 84,000 16,000 65,000 S 269,810 F:i 7 7. Proceeds of Sale (cash and mortgages) 1,400,000 8. Interest for 1 Month on Mortgage Proceeds (August 1 • September 1) (est.) 9,500 7 Shortfall to be Provided by Owners S 137.059 *The Trustee is willing to petition the court to waive this fee. 2 2L 29 LAW OFFICES BRIGGS AND MORGAN PROFLSSIONAL ASSOCIATION 11400 13D S (CENTER MINNEAPOLIS, MINNESO?A 66408 TELEPHONE (618) nOD-0681 TELECOPIER (618) 076'1076 INCLUDINO THE FORMER FIRM O! LEVITT, PALMER, BOWEN, ROTMAN & SHARE August 4, 1988 Virgil C. Herrick, Esq. Herrick & Newman, P.A. Suite 205 6401 University Avenue N.E. Fridley, Minnesota 55432 Re: Fridley Plaza Office Project Dear Virgil: Marquette Bank Minneapolis, N. A . (the "Trustee ") holds certain accounts on behalf of the Fridley Plaza Partnership (the "Partnership ") pursuant to the terms and conditions of the Indenture of Trust dated October 1, 1982. The Trustee and the Partnership may reach a settlement in the above - referenced matter. As I mentioned when we spoke last week, we have taken the position that the written approval and authorization of the Fridley Housing and Re- development Authority is required prior to the release of funds in the Lease Fund and the Purchase Account to the Partnership. We will need a letter from the City which authorizes the Trustee to release all funds in the Lease Fund and Purchase Account to the Partnership or the party purchasing the property from the Partnership. The letter should also state any restrictions or requirements, if any, with which the Partnership or the purchaser must comply prior to release of the funds. We will need this letter no later than August 11, 1988, in order to permit the Partnership to complete the transaction within the schedule the Partnership has 8800 MOM NAMNAL BANK BUIMMO 8400 I D!4 CRITTER 4870 NN WOMM TRADE CENTER S&M PAUL. NZWES & am MINNEAPOLIS, NIN"PAOTA 66408 SAINT PAUL. MINNESd[A 66101 (618) OOB•OBtN mom-ma mm ON • t81s . 6. 2N BRIGGS Awn MORGAN Virgil C. Herrick August 4, 1988 Page 2 established. In addition, we will need a letter from Herrick 6 Newman, P.A., representing the City of Fridley and the Fridley Housing and Redevelopment Authority, stating that the official who has signed the letter on behalf of the City has authority to do so. Please feel free to call me if you have any questions. Ver truly yours, Andrea M. Machmeier Am: ph cc: Thomas Korsman, Esq. Alan Maclin, Esq. James Ray, Esq. 23 too ArMRNEYS AT LAW Virgil G Herrick Aug4st 2, 1988 David P.Newm= James D. Hock 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 BRA 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 BRA'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 BRA's second mortgage is subordinated. Both Mr. Qureshi and I would recommend to the BRA 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 BRA 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 University Avenue N.E., Fridley, Minnesota 55432, 612 -571 -3850 .11 Jock Robertson August 2, 1968 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 BRA 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 BRA 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 BRA 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 BRA 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 BRA. review these items at their next meeting and to provide you with the necessary authorizations in order to execute the necessary documents. Sincerely yours, David P. Newman DPN:jeb Enclosure cc: Leonard Juster •1 `i� 3 RESOLUTION NO. BRA - 1988 RESOLUTION RELATING TO REDEVELOPMENT PROJECT NO. 1 AND AMENDING THE MODIFIED REDEVELOPMENT PLAN RELATING THERETO AND AMENDING THE TAX INCREMENT FINANCING PLANS RELATING TO TAX INCREMENT FINANCING DISTRICTS NO. 2 THROUGH NO. 8 WITHIN THE PROJECT AREA. SECTION 1. 1.01. It has been proposed, with respect to the Authority's Redevelopment Project No. 1, that (a) the Authority amend the Modified Redevelopment Plan relating thereto and established pursuant to and in accordance With Minnesota Statutes, Sections 462.411 to 462.716, inclusive, as amended to Tax Increment Financing Districts No. 2 . through No. 8 to reflect the revised project costs of the Modified Redevelopment Plan of Redevelopment Project No. 1 pursuant to and in accordance with Minnesota Statutes, Sections 273.71 and 273.78, inclusive, as amended (collectively, the "Proposed Amendment"). 1.02. This Authority has investigated the facts and has caused to be prepared with respect thereto the Proposed Amendments. 1.03. The Authority has performed all actions required by law to be performed prior to the adoption of the Proposed Amendments. 1.04. The Board hereby determines that it is necessary and in the best interest of th City and Authority at this time to approve amendment of the Modified Redevelopment Plan and to approve the amendment of the Tax Increment Financing Plans relating to Tax Increment Financing Districts No. 2 through No. a SECTION 2. Approval of Amendment of Tax Increment Financing Plans Relating to Tax Increment Financing Districts No. 2 through No. 8. Subject to the finding, determination and approval thereof by the Fridley City Council, the proposed amendments fo the Tax Increment Financing Plans relating to Tax Increment Financing Districts No. 2 through No. 8, as presented to the Authority on this date, are hereby approved by the Commissioners of the Authority. SECTION 3. Approval of Amendment of Modified Redevelopment Plan. The proposed amendment of the Modified Redevelopment Plan for Redevelopment Project No. 1, as presented to the Authority on this date, is hereby approved and adopted by the Cammissionsers of the Authority. SECTION 4. Filing of Plans. The authority shall cause the proposed Amendments, upon approval thereof by the Fridley City Council, to be filed with the Minnesota Department of Energy and Economic Development. Page 2 - Resolution - 1988 PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIMEY THIS DAY OF . 1988. LAWRENCE CONKERS CHAIRMAN ATTEST: JOHN L. ROBERTSON EXECUTIVE DIRECTOR 4 RESOLUTION NO. MIA - 1988 RESOLUTION REQUESTING A PUBLIC HEARING RELATING TO REDEVELOPMENT PROJECT NO. 1 AND THE AMENDMENT OF THE MODIFIED REDEVELOPMENT PLAN RELATING THERETO AND THE TAX INCREMENT FINANCING DISTRICTS NO. 2 THROUGH NO. 8 VITHIN THE PROJECT. BE IT RESOLVED by th Board of Commissioners (the "Commissioners") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority"), as follows: SECTION 1. Recitals. 1.01. It has been proposed that, with respect to the Authority's Redevelopment Project No. 1 (a) the Authority amend the Modified Redevelopment Plan relating thereto and established pursuant to and in accordance with Minnesota Statutes, Sections 462.411 to 462.716, inclusive, as amended, and (b) the Authority amend the Tax Increment Financing Plans relating to Tax Increment Financing Districts No. 2 through No. 8 to reflect the revised project costs of the Modified Redevelopment Plan of Redevelopment Project No. 1, pursuant to and in accordance with Minnesota Statutes, Sections 273.71 to 273.78, inclusive, as amended (collectively, the "Proposed Amendments "). 1.02. This Authority has caused to be prepared the Proposed Amendments, including the additional public improvement costs proposed to be incurred within Redevelopment Project No. 1. SECTION 2. Request for Planning Commission Revim The Authority hereby requests review by the City's Planning Commission on the Proposed Amendments. SECTION 3. Recuest for City Council Public Hearing The Authority hereby requests that the Fridley City Council hold a public hearing on October 17, 1988, pursuant to Minnesota Statutes, Section 273.74, Subdivision 3, on the Proposed Amendments. The officers of the Authority are hereby directed to notify the Fridley Planning Commission and the Fridley City Council of the requests made of said public bodies in Sections 2 and 3 of this Resolution, respectively. Page 2 - Resolution No. HU - 1988 4A PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIMEY THIS TH DAY OF . 1988 LAWRENCE CONMERS CHAIRMAN ATTEST: JOHN L. ROBERTSON EXECUTIVE DIRECTOR Li M E M O R A N D U M TO: CHAIRMAN WMMERS AND HRA MEMBERS FROM: SAMANTHA ORDUNO, MANAGEMENT ASSISTANT DATE: AUGUST 31, 1988 SUBJECT: NEIGHBORHOOD MEETINGS REGARDING COTTAGES DEVELOPMENT At the request of the Fridley City Council, Arkell Development Corporation, developers of the proposed senior housing project known as the Cottages, will conduct informational meetings on September 6 and 7, 1988 for residents around the proposed site. Notice of the two meetings was mailed by Arkell Corporation to residents , Council members and the Planning Chairperson. Concerned that a larger number of area residents be given the opportunity for input regarding this proposed development, Councilmembers Dennis Schneider and Nancy Jorgensen requested that staff expand the mailing list to include additional area residents. Therefore, Community Development staff mailed notices to residents outside Arkell's initial contact area. John Arkell will be in attendance at the September 8, 1988 HRA meeting to discuss both the development and the reactions of residents to the informational meetings. 16/10 Ss THE ARKEI.I. DEVELOPMENT CORPORATION neighborhood meeting notice date: Wednesday, September 7, 1988 time: 7:00 p.m. place: Fridley Community Education Center 6085 7th St. N.E. Fridley, MN 55432 25 August 1988 Dear Resident: You are invited to attend a neighborhood meeting about the proposed construction of single- story, senior rental townhouse units for the vacant property located just off of Hillwind Road between Polk Street and Fillmore Street. This will be an informational meeting which will begin with a brief informal presentation about the development. After this I will answer any questions you may have about the project. Also available to ans- wer questions will be members from the City staff and members from the City Council. Sincerely yours, �%0 John Arkell, President Arkell Development Corporation Metro Square Building • Saint Paul, Minnesota 55101 (612) 293 -0910 5B THE ARKELL DEVELOPMENT CORPORATION neighborhood meeting notice date: Tuesday, September 6, 1988 time: 7:00 p.m. place: Fridley Community Education Center 6085 7th St. N.E. Fridley, M 55432 25 August 1988 Dear Resident: You are invited to attend a neighborhood meeting about the proposed construction of single- story, senior rental townhouse units for the vacant property located immediately east of the commercial building on the northeast corner of Central Avenue and Rice Creek Road. This will be an informational meeting which will begin with a brief informal presentation about the development. After this I will answer any questions you may have about the project. Also available to ans- wer questions will be members from the City staff and members from the City Council. Sincerely yours, qAct' LZ'J eO4�1 John Arkell, President Arkell Development Corporation Metro Square Building • Saint Paul, Minnesota 55101 (612) 293 -0910 Mailing List - Neighborhood Meetings SP #88 -11 Arkell Development COUNCILPERSONS TO ATTEND William J. Nee 219 Logan Parkway N.E. Fridley, MN 55432 Nancy Jorgenson 5730 Polk Street N.E. Fridley, MN 55432 Steven Billings 5215 Lincoln Street N.E. Fridley, MN 55421 Dennis Schneider 6190 Stinson Boulevard N.E. Fridley, MN 55432 Edward Fitzpatrick 5273 Horizon Drive N.E. Fridley, MN 55421 HILLWIND ROAD AREA Thomas Jacobson Real Estate 5560 Fillmore Street N.E. Fridley, MN 55432 951 Hillwind Julie Theis 1010 Lynde Drive N.E. 5586 Fillmore Street N.E. Fridley, MN 55432 Fridley, MN 55432 Patricia Theis 5588 Fillmore Street N.E. Fridley, MN 55432 Mark Jensen 5572 Fillmore Street N.E. Fridley, MN 55432 Patrick White 5570 Fillmore Street N.E. Fridley, MN 55432 Cheryl Stinski 1612 Berne Circle N.E. Fridley, MN 55432 Robert Frois 1060 Lynde Drive N.E. Fridley, MN 55432 Walter Hansen 1050 Lynde Drive N.E. Fridley, MN 55432 Neil Allen 1040 Lynde Drive N.E. Fridley, MN 55432 Ted Field 1030 Lynde Drive N.E. Fridley, MN 55432 Cathy Benson 1020 Lynde Drive N.E. Fridley, MN 55432 Harry McKinley Box 32154 Fridley, MN 55432 Er David Harris Real Estate 10 Office Bldg. Harry McKinley /Resident 6279 University Ave. NE #202 951 Hillwind Road N.E. 1010 Lynde Drive N.E. Fridley, MN 55432 Fridley, MN 55432 Fridley, MN 55432 Oliver Erickson Toni Fehling 6279 University Ave. NE #202 941 Hillwind Road N.E. Fridley, MN 55432 Fridley, MN 55432 Allan Fehn 1251 Hillwind Road N.E. Fridley, MN 55432 School District 13 1400 - 49th Avenue Columbia Heights, MN 55421 School District 13 5575 Fillmore Street N.E. Fridley, MN 55432 Daniel Sullivan 1161 Regis Lane N.E. Fridley, MN 55432 Allan Fehn 1229 Hillwind Road N.E. Fridley, MN 55432 Willard Lawrence 5562 Fillmore Street N.E. r-;Ai -, VV SS/ 4') Polk Street Investment 5650 Polk Street N.E. Fridley, MN 55432 Polk Street Investment 2901 Metro Drive, #105 Bloomington, MN 55420 Roger Frank 5512 Fillmore Street N.E. Fridley, MN 55432 Ok Him 1291 Hillwind Road N.E. Fridley, MN 55432 Delbert Johnson 1271 Hillwind Road N.E. Fridley, MN 55432 Scott Masica 1070 Lynde Drive N.E. Fridley. MN 55432 Ray Wells 1000 Lynde Drive N.E. Fridley, MN 55432 RICE CREEK ROAD AREA Yoava Klucsar 1337 Hillwind Drive N.E. Fridley, MN 55432 Ervin Kassow 1400 Rice Creek Road N.E. Fridley, MN 55432 Dorothy Miles 1370 Rice Creek Road N.E. Fridley, MN 55432 Paul Litwinczuk 6291 Central Avenue N.E. Fridley, MN 55432 Gregory Stenhoff 6283 Central Avenue N.E. Fridley, MN 55432 RICE CREED ROAD AREA (Cont') Caleb Spooner 6271 Central Avenue N.E. Fridley, MN 55432 Reuben Olson 1430 Rice Creek Road N.E. Fridley, MN 55432 Carol Dwyer 6282 Kerry Lane N.E. Fridley, MN 55432 Brian Peterson 1340 - 64th Avenue N.E. Fridley, MN 55432 LeRoy Tovsen 1356 - 64th Avenue N.E. Fridley, MN 55432 Richard Mochinski 7256 E. Commerce Circle N.E. Fridley, MN 55432 Rice Creek Properties 1315 Rice Creek Road N.E. Fridley, MN 55432 Herbert Hart 1450 - 64th Avenue N.E. Fridley, MN 55432 Bruce Olson 1442 - 64th Avenue N.E. Fridley, MN 55432 Thomas Brickner 1441 Rice Creek Road N.E. Fridley, MN 55432 Resident 1443 Rice Creek Road N.E. Fridley, MN 55432 Beulah Lea 1426 - 64th Avenue N.E. Fridley, MN 55432 Marian Paulson 1425 Rice Creek Road N.E. Fridley, MN 55432 David Zerby 1400 - 64th Avenue N.E. Fridley, MN 55432 Stanley Dahlberg 1384 - 64th Avenue N.E. Fridley, MN 55432 Mark Schwartz 1372 - 64th Avenue N.E. Fridley, MN 55432 Yoava Klucsar /Resident 1420 Rice Creek Road N.e. Fridley, MN 55432 PLANNING COMMISSION CHAIR Donald Betzold 1601 North Innsbruck Drive X1201 Fridley, MN 55432 z M: AWw jw lip AR -a o 4TH • tj pr�> • ales n i 9 (260) 7 S (5660) f 0 ) (&tl 'wo'' /4 /Z A0 6 i � '1 rte; AVE. N F (��I •N � '1 /sr of a qtr iN s• u , M -rf �L b c Oi (i1 (BO) 1 D� i!'rafiiw 16 Are) 4 2 : • (low - low I � /Ar /.vim i _ - � t• fi •c kit AVE. N F � '1 /sr of a qtr iN s• u i i M • ar it r b ' 4a" 1 D� i!'rafiiw 16 15- - low I � /Ar /.vim i _ - � t• fi •c 1 . I l� /S�. 1 r'# Air / ow i RQ tebw ! i �� - �� (n� • - 1000; . lad �•ota lra (svol l• 4 1 a � life) , ! A xe,' /l i - - _. _ �� • _ -sue• .y 1! (,� 0111) r I e? d 1�aof toj� 1 ip1 •s��.. 1e) - w • y , W dw) , V LOCATION MAP Gl,? M • ar it r b ' 4a" 1 D� i!'rafiiw 16 15- - low I � /Ar /.vim i _ - � t• fi i - - _. _ �� • _ -sue• .y 1! (,� 0111) r I e? d 1�aof toj� 1 ip1 •s��.. 1e) - w • y , W dw) , V LOCATION MAP Gl,? owl .. • /, • • or APO p MA w 40p, An dr 1 � 'ors � �, � ♦1 •. .1 ref r- -ins s• •1) Qa0 IM /I /O fa" • I .. Is 46 'o, 'o d, map w w L 1) C7 i fa•/ / fK/ J 1 /L f�1 ilea) to S it ST lid I s�o' ��, I� � •I� N r •�I• �I • •I � � v Ar -LYNDE DRIVE r P... •M N� .� 12A Iwo A.) �r•A tint �!d I ` �l� S� , Nn tiro trio lot pdk ,Jv 01 (/rop) o . .t /.`` iB (so> :1.. • /!4 `� tie low MAU WAV kv- A6iD�y> ' Av �'p ; iii/ �e� / u.• C7 R {fie, sr �0 'AACVrX- ► t3 a,J _AQ 1. A�1 (.4; SU VISION ss�s i —fin -1 -------- - -1 --- `� No 6 � pig► r fis) 7 f % ID,? a W-41/4w) _N, -I aw AIP t� s t ADO. MO 39 - -- S7 CpV00 ND.39� -� !S $UP. CONDO /Y :eo r' - - -m I_ NT BMTE LOCATION MAP 5F 6 HERRICR & NEWMAN P.A. ATTORNEYS AT LAW Virgil C. Herrick September 1, 1988 David P. Newman James D. Hoeft Gregg V. Herrick Jock Robertson City of Fridley 6431 University Avenue N.E. Fridley, MN 55432 RE: Louis Lundgren Dear Jock: As you are aware, Clark Engineering recently served a Notice of Mechanic's Lien on the property which was the subject of the proposed development with Lou Lundgren. This property includes both the property owned by Bob Levy as well as the property owned by the Fridley HRA. In response to this you will find a letter from Richard Diamond demanding that the HRA defend and indemnify the owners of the Rice Plaza Shopping Center. In response to Mr. Diamond's letter I drafted a proposed response to the attorneys representing Clark Engineering. Enclosed you will find a copy of Mr. Diamond's consent to our sending this letter and in fact I have subsequently sent to the attorneys for Clark Engineering a summary of our position. My reason in writing is to seek direction from the HRA in response to Mr. Levy's demand for defense and indemnification. For reference you will find a copy of a letter that was sent to Mr. Levy on November 19, 1985. You will note that at that time we were asking Mr. Levy to consent to the preparation of a site survey and that on behalf of the HRA I indicated that "this work would be done at no cost to your father and he would not be liable for any injuries which might result." On November 20, 1985 I received from Mr. Levy a proposed agreement. Under the terms of this proposed agreement which was executed by Mr. Levy the proposed language stated that: "Rice Plaza hereby consents to preparation of a site survey for Plat 7. The City and HRA shall bear all costs and be responsible for all damages associated with that survey." Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612 -571 -3850 Jock Robertson September 1, 1988 Page Two This agreement was never executed by the HRA. The reason is that while the terms of this agreement were being negotiated and redrafted, Mr. Lundgren's agents went on the site and did the necessary work. By the time final language to an agreement was agreed upon, the work had been completed and Mr. Qureshi then elected not to proceed with the execution of the agreement. While this agreement was never formally executed it certainly was the intent of the parties to indemnify Mr. Levy for any dama- ges that might result from the actions engaged in by Mr. Lundgren. It was certainly based upon this verbal understanding that Mr. Lundgren's agents were authorized to go onto the site. Further, since it will be necessary to defend the liquor ware- house building from the lien, the additional cost of representing the Rice Plaza Shopping Center should not be significantly greater. I would appreciate it meeting instruct me as to Levy's tendered defense in DPN:jeb Enclosures if you would have the HRA at the next whether or not we should accept Mr. this matter. incerely ikn" urs, avid P. bA V'* C. HaTL-k ?avid P. Newm= fees D. Hoeft iGM V. Had& HERRICK & NEWMAN P.A. ArMRNEYS AT LAW August 31, 1988 Peter W. Johnson ' Johnson, Wood, Phleger a Bigelow 730 East Lake Street Wayzata, Minnesota 55391 RE: Fridley Plaza Shopping Center/ Clark Engineering Co. Dear Mr. Johnson: '1". :1 . Please be advised that our firm represents the Fridley Housing and Redevelopment Authority. Enclosed for your reference you will find a Mechanic's Lien Statement which was recently served upon my client. On behalf of the property owners of the subject property I am demanding this Mechanic's Lien Statement be immediately removed from the subject property. While I do not represent Rice Plaza, the owner of a majority of the subject property, I can assure you that both property owners are emphatic that the filing of this Mechanic's Lien Statement is illegal and constitutes a slander of title to property. I would like to direct your attention to NSA Section 514.01 which states in part: "Whoever performs engineering or land surveying services with respect to real estate, or contributes to the improvement of real estate by performing labor, or furnishing skill, material or machinery for any of the " purposes hereinafter stated, whether under contract with the owner of such real estate or at the instance of an agent, trustee, contractor, or subcontractor of such owner, shall have a lien upon the improvement ..." At no time has Mr. Lundgren been the owner or the owner's agent, trustee, contractor, or subcontractor. At no time has Mr. Lundgren or any of his agents ever executed any contracts relating to the purchase of the subject property. In anticipation that he would acquire a legal interest in the property, Mr. Lundgren directed your client to do certain engineering work: However, you need to know that this work was purely speculative on the part of Mr. -- Lundgren and at no time was he acting on behalf of the owners or did he have an ownership interest in the property. Suite 205, 6401 University Avenu- N.E., Fridley, Minnesota 55432, 612 -571 -3850 6B Peter W. Johnson August 31, 1988 Page Two II In December, 1985 the BRA did execute a Development Agreement with Mr. Lundgren. However, in August, 1986 this Agreement was terminated and Mr. Lundgren acknowledged that he had no further interest in the Development. Consequently, any further work done was purely speculative. If in fact it is necessary to take steps in order to compel your client to remove the Mechanic's Lien Statement from the subject property, then we will also pursue a claim for reco've'ry of our attorneys fees in bad faith.and also seek other damages for slander of title. While I am certainly sympathetic with your client's situation, if Mr. Lundgren has not paid them for the work they have performed you also should not underestimate the be -lief held by the joint property owners that the filing of this Mechanic's Lien Statement is unfounded and illegal. I would appreciate your advising me within the next seven (7) days as to whether or not your client will voluntarily remove the Mechanic's Lien from.the property or if it is necessary for the property owners to commence appropriate legal action. incerely yours, David P. e n DPN:jeb :enclosure cc: Jock Robertson Richard Diamond W JOHN D. PARSINEN R. 0.ESTES ROSCRT A. LEVY ERIC •. SCHULTZ JACK A. ROSSCRD LEON 1. STEINSCRO RICHARD 1. DIAMOND DAN SICRSDORr ®URILE HINDS A. TODD RAPP HOWARD J. RUSIN DAVID R. NTLRCA 6D LAW OFFICES ESTES PARSINEN 6 LEVY A PwOFCSSIONAL ASSOCIATION Jerr Ross 100 SOUTH FIFTH STREET DAVID A. ORENSTCIN SUITE 1100 MICHAEL a.DAUGHERrr 4INN9^11 OL16,MINNESOTA 66402 DIANE L. CNK PATTI L. iCNK JOHN C. LEVY TELEPHONE JOSEPH M, SOKOLOWSKI 16121 333 -2111 LINO^ N.TCOFORO FACSIMILE 46121 333 -074Ds ■wueE S. JANCs August 29, 1988 °' `°"K"` David P. Newman, Esq. Herrick &Newman P.A. Suite 205 6401 University Avenue N.E. Fridley, Minnesota 55432 RE: City of Fridley /Rice Plaza Dear Mr. Newman: a. I am in receipt of your letter of August 25, 1988, with respect to our demand for acceptance of a tender of defense in the above - entitled matter. I have also reviewed your proposed letter of August 25, 1988, to Peter W. Johnson, attorney for Clark Engineering Co. Please be advised that Rice Plaza is desirous of obtaining a formal acceptance of the tender of defense at the earliest possible opportunity. Assuming that there is no change in the lien situation, for example, the commencement of a foreclosure of the lien, we will await the September B. 1988 meeting. In the interim, we have no objection to your posting of the letter, as long as it is clear that Rice Plaza waives no rights with respect to our position that the City of Fridley is solely responsible for removing this lien from the property. Thank you for your continuing cooperation. Very truly yours, Richard L Diamond RID/lps rid -851 cc: Robert A. Levy, Esq. JOHN O. PAR31MEN R. D. caTES ROBERT A. LEVY ERIC a. SCHULTZ JACK A.ROSBERO LEON I. STEINBERO PICHARO 1. DIAMOND ®AN BIERSOORF e:. SURKE HINDS 9. TODD RAPP HOWARD J. RUSIN DAVID R. MYLREA ID LAW OFFICES ESTES PARSINEN & LEVY A PROFESSIONAL ASSOCIATION 100 SOUTH FIFTH STREET JEFF woaa DAVID A. ORENSTEIN SUITE 1100 MICHAEL S. DAUGHERTY MINNEAPOLIS, MINNESOTA 86408 DIANE L. KROUPA PATTI L. MEN JOHN C. LEVY TELEPHONE JOSEPH M. aOKOLOWSKI 16121 333 -2111 LINDA M. TEDFORD FACSIMILE 10621333-0700 SPLICE S. JAMES August 23, 1988 OF °OI"••L David P. Newman, Esq. Herrick & Newman, P.A. 6401 University Avenue N.E. Fridley, Minnesota 55432 RE: City of Fridley - Rice Plaza Clark Engineering Co. Mechanic's Lien Dear Mr. Newman: Confirming your telephone conversation of August 22, 19881, with Robert A. Levy of this office, this office is in receipt of a Mechanic's Lien Statement filed by Clark Engineering Co. in the sum of $5,988.95, dated August 19, 1988. Apparently, this Lien Statement results from their employment between November 11, 1985 and April 22, 1988, by Louis R. Lundgren and Lundgren Associates, Inc., in conjunction with the proposed redevelopment of various property in your city by Lundgren. As you know, our client, Rice Plaza, a Minnesota general partnership, owns property upon which the lien purports to attach. Since the Housing and Redevelopment Authority ( "HRA ") of the City of Fridley never obtained any legal or equitable ownership in the property, however, and since Rice Plaza gave no actual or implied permission for the surveying of the property by Lundgren, the lien has improperly attached. As Mr. Levy informed you, Rice Plaza does not intend to incur any additional costs in conjunction with this matter. It is our strong belief that the City of Fridley and the HRA through the continuing actions of the HRA which have affected the occupancy and use of our client's property has caused or permitted this lien to be filed. It is my understanding that in January of 1986, Mr. Levy forwarded to you an agreement negotiated between you and him, executed by Rice Plaza and specifically providing that the HRA would indemnity and told Rice Plaza harmless from any costs or damages, specifically including mechanic's liens, resulting from any action taken by the City, the HRA, or their designees pursuant to the agreement, under which the HRA was permitted to proceed with obtaining soil samples, a special use permit, a plat survey and a lot split for a proposed development that would include Lot 1, Block 1, Sylvan Hills, Plat 7, Anoka County, Minnesota. Although this Agreement was apparently never executed by the HRA or the City, the HRA and the City proceeded as if they had obtained the consent of Rice Plaza, and thus have waived and are estopped from asserting a defense to their contractual duty to provide indemnification for this situation. In the alternative, since the HRA was responsible for instructing Lundgren to proceed, Rice Plaza is clearly entitled to indemnification under common and statutory law, not only for the amount of the lien claim, but also for the costs incurred in having to defend aril /or remove the lien. 0 ESTES PARSINEN 6 LEVY David P. Newman, Esq. August 23, 1888 Page 2 w' As previously stated, Rice Plaza has no intention of incurring any further costs in the defense of this matter. Accordingly, please consider this letter a tender of defense and demand for removal of the Mechwde% Lien from the property owned by Rice Plaza. You may comply with this demand by immediately settling or paying off the lien; commencing an action in the nature of an adverse possession action at your sole cost and expense under Minn. Stat. S 514.10; applying to the court to post a bond in lieu of the property for security on the lien under Minn. Stat. S 514.10; or otherwise proceeding forthwith to remove the lien against the property. Failure to take immediate action may or will result in a claim by Rice Plaza for slander of title to the property and collection of all attorneys' fees and costs incurred by Rice Plaza, if alternative action is required. RID/lps rid -840 very truly yours,pp �J Richard L Diamond ces Robert A. Levy, Esq. Fred P. Levy James Ridgway 0 6F LAW OFFICES ESTES PARSINEN 6 LEVY A PRO►s111810NAL ASSOCUT10N 100 SOUTH rIrTH STREET JOHN O. PAREINCN bU ITE 1100 S. TODD RAPP R. s 0. BERT A ROBERT A. LEVY MI N N EAPOLI8, MINNESOTA SS402 NOwwwO J. RUSIN DAVID R. MTLR[A QRIC S. SCHULTZ JCIr Ross JACK A.ROsscRO TELEPHONE CLLCN M.WEILCM LEON I. STCINSCRO 16121 933-2111 SCOTT L. ANDCOSO14 FACSIMILE SRUCE N.JAMCS DANIEL J. f1iRSDORF 16121 333-6700, OF COUNDCL C. DUNNE NINOG November 20, 1985 David P. Newman, Esq. Herrick & Newman, P.A. 6279 University Avenue N.E. Fridley, Minnesota 55432 Re: Rice Plaza Office Building 'Dear Mr. Newman: Enclosed is the agreement which we have prepared relating to the soil borings, special use permit, lot split and survey which the City of Fridley and the HRA desire for the above - referenced project. You should note that Lot 19 Block 19 Sylvan Hills, Plat 7 is owned by Rice Plaza, a Minnesota partnership, and not by Fred Levy. This is reflected in the attached agreement. Kindly have an appropriate representative for the City of Fridley and the HRA execute the attached agreement and return a copy to me. If you have any questions or comments in this regard, please contact me. RAL/bam enclosure cc: Fred Levy db-1 Sincer 1, Robert A. Levy 1 6G Z AGREEMENT THIS AGREEMENT is made by the unders fined in contemplation of a4sale of Lot 1, Block 1, Sylvan Hills Plat 7, City of Fridley, `R County, hereinafter FgfArred to as "Plat 7 "9 by Rice Plaza, a Minnesota partnership, ("Rice Plaza") to the Housing and Redevelopment Authority ("HRA') under threat of condemnation. This Agreement is needed in order that the City of Fridley ("City') and the HRA may proceed with obtaining soil samples, a special use permit, a plat survey, and a lot split for a proposed development that will include Plat 7. Rice Plaza will agree to these objectives provided that the City and the HRA comply with the terms outlined herein. For the purposes of this Agreement, references to Phases 1, 21 3, or 4 shall be as they are shown on the plat map which is attached hereto and incorporated herein as Exhibit A. For all purposes herein, reference to a sale of Plat 7 shall be deemed under threat of condemnation and shall also include any taking by condemnation or under power of eminent domain. The City —aand-the HRA may authorize and through its agents undertake soil borings upon Phase 1. The borings will be made and the soil samples obtained in as non - conspicious a manner as possible so as not to alarm existing occupants on Plat 7 of any Impending development should a sale of Plat 7 to the HRA not materialize'' All costs, permits, or conditions otherwise necessary or incurred in connection with conducting the soil borings and obtaining soil samples shall be the responsibility of the -City, the HRA, or their designee and at no cost to Rice Plaza. Rice Plaza makes no warrants or guarantees as to the existence, the location, or condition of any utility services anywhere within Plat 7. The identification of the existence or location of such utility services shall be the sole responsibility of the —Gity or the HRA. If any utility services are in any way damaged by the soil borings authorized herein or the work related thereto, 1 he GRY and the HRA shall be ' liable for all cost required to repair such utility services and for any damages to Rice Plaza resulting from the interruption of such utility service. Immediately after the soil borings are completed, any holes shall be refilled below grade in accordance with industry standards. At the same time, the above grade parking lot surface shall be repaired to conform with the surrounding surface,, The -G4ty awe HRA shall also be responsible for any costs if this refilling or repair work is not properly accomplished. \ W,.+�- 0-4w3 AMd- A'ylOG;6 S D& m Asf wrS C� �! era �. r. {. • 1 Rice Plaza consents to applying for special use permits and a lot split for Plat 7. The special use permits and lot split shall not take effect unless and until Plat 7 has been actually acquired by the HRA. If Plat 7 is not acquired by the HRA by December 319 1986, the special use permits and lot splits shall be of no further force and effect. All costs associated with the making and processing of these applications shall be borne by tfie--Qby�. the HRA, or their designee. As a condition to Rice Plaza's consent to these applications, the following conditions shall exist in determining the market value of Plat 7 in any purchase or condemnation or taking thereof under power of eminent domain by the City or the HRA: 1. The classification and zoning of Plat 7 shall be as it exists on November 15, 1985, Le.,, any action associated with the applications consented to herein shall not be utilized in determining the value of Plat 7 for purposes of a sale to the HRA. 2. Land value for la 7, e� a square footage basis, shall be considered as if it were part of a larger sin a 'pel which would also include Lot 1, Block 1, Sylvan Hills, Plat 6, City of Fridley l=le�nepin County ("Plat 6"), so as to reflect the assemblage factor as it applies to P at 7,'as if Plat 6 had not been acquired by the HRA as a separate parcel at an earlier d te. ;`[This condition parallels the understanding that was reached for valuing Plat 6 as i related to Plat 7 at the time Plat 6 was acquired by the HRAJ 6H Rice Plaza hereby consents to preparation of a site survey for Plat 7. The C4ty -w d HRA shall bear all costs and be responsible for all damages associated with that survey. The Gky6 - ey and the HRA shall indemnify and hold Rice Plaza harmless for any costs or damages, including mechanics liens or any injury to persons or property, resulting from any action taken by the City, the HRA, or their designee pursuant to the terms of this agreement and for any costs that Rice Plaza Incurs in enforcing this agreement, including attorneys fees. Dated: 1 ;' I� ��• , .� 1 Dated: Dated: DB -82 RICE PLAZA By Fred Levy Its Partner THE CIT4 OF FRIDLEY i )its THE HOUSING AND REDEVELOPMENT AUTHORITY By Its 6I Z ;I. . ti0 Ab.:• 6yJ0 Of 40 Af ime Ana (0720 6 7,a S �• t G7� • t • 8• .V• at `K;e •• '� �. �, ao X29 .3519 � i� Q' • i ' � :� •' ••••. ,• -� •bled �• ' N. 6 d t t• �� � 220 ::. � y.-r' ZSO i � � + [r#? . 9 W ANO b� . � � �3SSI . vs Al .. r.. i/i Z iii ..... � • /'�' N .. r..r... ! �! z w 00 ' ! I is r ie Nt 1 •a• • e• .e b ! ►1 . �• V SISSIPPI Wt.. j.= ' & w ` ( �i• y ,� ► +ase Two) IL ,i%'" r -ftv . Lie... � 6460 i • i fi Z (Phase OfH� (Phase Four) " Q � t L.AT X...1. LVAN Jv HILLS ..� - x - �; ' 6410 PLA ' t • ;. • � B.. ' Oi^ir F map BIT NO 4 1 • 4 1301 114 16+0 174 too .. i- a .rte..• • . 1 ^� i a,r E B. • / Ij • J F 131 1�5 111 Al s J � J n- U j N � �4t 0 J ti0 Ab.:• 6yJ0 Of 40 Af ime Ana (0720 6 7,a S �• t G7� • t • 8• .V• at `K;e •• '� �. �, ao X29 .3519 � i� Q' • i ' � :� •' ••••. ,• -� •bled �• ' N. 6 d t t• �� � 220 ::. � y.-r' ZSO i � � + [r#? . 9 W ANO b� . � � �3SSI . vs Al .. r.. i/i Z iii ..... � • /'�' N .. r..r... ! �! z w 00 ' ! I is r ie Nt 1 •a• • e• .e b ! ►1 . �• V SISSIPPI Wt.. j.= ' & w ` ( �i• y ,� ► +ase Two) IL ,i%'" r -ftv . Lie... � 6460 i • i fi Z (Phase OfH� (Phase Four) " Q � t L.AT X...1. LVAN Jv HILLS ..� - x - �; ' 6410 PLA ' t • ;. • � B.. ' Oi^ir F map BIT NO 4 1 • 4 1301 114 16+0 174 too .. i- a l 1 • t� Ne i a,r E B. • / Ij • M I S F 131 1�5 111 Al s � .f ..r• . V !' 1 • l / • .� •e �K;' 275 .. • ... .G., • 160 • r• t ••s° ! 22' � • ••"' � �.. � VIROIL C. NERRK:K DAVID P. NEWMAN JAMES 6 SCMMECKPEPEII .HERRICK 81 NEWMAN, P.A. ' AnoRNETS AT LAW Mr. Robert A. Levy ESTES, PARSINEN'& LEVY Attorneys at Law 700 Pillsbury Center 200 South Sixth Street Minneapolis, MN 55402 November 19, 1985 RE: Rice Plaza Office Building Dear Mr. Levy: I ... __ 6K 42" YMVERSITT AVENUE W.B. PRIDLET. MINNESOTA SU= 571.3080 .l Pursuant to our phone conversation of yesterday you will find enclosed a set of additional drawings which show where the intended soil borings would occur. Also enclosed you will find a copy of a letter from the City Planning Coordinator. You will note that the City is aware of the fact that Boring #1 is quite close to the sewer and water line. As outlined in this letter, it is the intent of the City to locate this line before the borings take place. It is my understanding that you will' be preparing an indemnification agreement on this matter. I would appreciate it if you would forward it to me at your earliest possible convenience. We also discussed yesterday the question surrounding the application for the special use permits and lot splits. It is my understanding that you have agreed to cooperate' with the City in consenting to these requests conditioned upon our agreement that none of.these requests will take effect until such time as the property is acquired. Additionally, we have agreed that for purposes of determining value in acquiring the property that any action taken pursuant to these requests will not be considered. Again, it -is my understanding that you will be preparing this consent. Based upon our verbal understanding the City will be publishing notice of the hearing of the Planning Commission so that this matter can be considered by the Planning Commission at its next meeting. Finally, in our discussions we did not address the question of your father consenting to the preparation of a site survey. As noted in my letter to you of November 15, 1985, this work would be done at no cost to your father and he would not be liable for any injuries which might result. Due to the fact that youphave been extremely cooperative, I would assume that you have no objection to our preparing the survey. If you wish, you may want to include the survey'in your indemnification agreement that you are preparing for the soil boards. I have talked to the City and they have no intention of acquiring the property before the end of the year. This should alleviate any concerns which your father may have,_ about year -end tax planning. Again, I would like to thank you for your cooperation. Sincerely yours, DPN:JJH David P. Newman Enclosures cc: Mr. James L. Robinson Y 6L Due to the fact that youphave been extremely cooperative, I would assume that you have no objection to our preparing the survey. If you wish, you may want to include the survey'in your indemnification agreement that you are preparing for the soil boards. I have talked to the City and they have no intention of acquiring the property before the end of the year. This should alleviate any concerns which your father may have,_ about year -end tax planning. Again, I would like to thank you for your cooperation. Sincerely yours, DPN:JJH David P. Newman Enclosures cc: Mr. James L. Robinson Y HERRj & NEWMAN P.A. 0 ATTORNEYS AT LAW ✓irgil C. Herrick )vid P. Newman ames D. Hoefr ;Kgg V. Herrick Lawrence Commers O'Connor & Hannan 3800 IDS Tower Minneapolis, MN 55402 Dear Larry: August 25, .1988 ' J-e�+Ylev,-c�, � � �� 5 401 r-� 9 L -511-11 As you will recall at the last BRA meeting the staff was directed to work with your architect in considering a surveillance system for the proposed parking ramp. Tim Turnbull of the Fridley Police Department has been reviewing this with the architect and it is their recommendation that the BRA retain as a consultant the same individual who designed the surveillance system for the Fridley Police Department. Mr. Turnbull informs me that the cost of providing certain recommendations should not exceed $1,300.00 and that formal recommendations will be available in time to be presented to the BRA at their September 8, 1988 meeting. Jock left this morning on vacation and will not be returning until after Labor Day. In light of the fact that Jock is not available, Tim contacted me for the purpose of seeking authority to authorize this consulting contract. In light of the concern that the BRA has to ensure that the surveillance issue is fully considered and further in light of the fast track that we are on for the construction of this facility, I authorized Mr. Turnbull to enter into this consulting contract. Frankly Larry I am uncertain of my authority to do this but in Jock's absence I felt that this was the decision that was most appropriate. If you have any objection to my taking this step please immediately contact me so that we can halt any further work by the consultant. Sincerely yours, David P. Newman DPN: job cc: Nasim Qureshi Jock Robertson Tim Turnbull 'suitc 205, 6401 University Avcnuc N.1:., I�ridlcy, Minnesota .5.5432, 612-571-IN-50 8 Barton- Aschman Associates, Inc. 1610 South Sixth Street Minneapolis, Minnesota 55454 July 6, 1988 W. Jock Robertson Ocmnmity Develapmeat Direc.:tcr City of Fridley 6431 University Avenue N.E. Fridley, PMT 55432 Re: University Avenue 71mp1- ovemits Dear Mr. Robertson: 612 - 332 -0421 We have enclosers for your review and approval revised sdxnatic drawings and a oust estimate for the proposed University AveMle imp kts. These improvements are comprised of: urban design el®ents at the University Avenue intersections with 57th, 61st, 73rd and Osborne Road; special lighting adjacent corridor frontage roads; corridor landscaP J; seeding between 73rd and Osborne; and traffic signal modifications. A brief description of each in�provement cagy follows. Intersection improvements will integrate the Fridley colored precast concrete paving brick with a band of pazed-in -place omxmmt e. The brick paving will occur at each of the intersection four quadrants and the median nose tips. Far side intersection treatments will accommodate bus shelter pads and waiting areas for transit patrons. Radius walls, appraadmately 30 mxIm high, are located in the same far side quadrants as per the enclosed sketch. Landscape designs and plant materials choices have been specifically chosen with the corridor's harsh in mind. The landscaping will prwide seasonal color and pedestrian scale. Pedestrian ramps will be located within each of the quadrants and median noses to acco®o I handicap traffic. In addition, connections will be made to ; adjacent existing sidewalks. Calvert extension and filling will be required at the 73rd and Osborne intersections due to University Avenue's rural roadway design in these areas. Corridor 1�i� and is shown in the attached p V-Imm gm#dcs. Special, twin-gIdbe single-pole lighting will ;)::L' frontage roads there commercial occur. Lighting will a adjacent the University Avenue, east frontage road between 57th and 61st,, 0 on the vest frontage road between 73rd and OsbWM- 7he specific lIonr- po • luminamm design consistent with - previous _ - - •- • that which is to be used on Rim Creek Road. OO 8A Barton- Aschman Associates, lnc. July 6, 1988 Page 2 T�andscapjw within the corridor will include canopy trees adjacent image roads, and a mix Of deciders ccniferaus shrubs and trees buffering residences an the east side of University Avenue between 73rd and Osborne. Once again, the locatim and species of these plant materials has been selected to maximize their tolerance of the hostile roa day enviraaaoent while providing visual interest. Post omwtructicn watering and n i *+fie*+ of all plant materials will be required by the city during plant establishment years. i laosment of riaht=p� turf will be limited to the University Avenue right -of-way between 73rd and Osborne. In this location, a grass mixture will be specified to improve the right -of-ways appearance %bile rem iniV tolerant of draught and salt problem. Edstinq turf between 57th and 61st will be as is and will not be altered by this project. Traffic sicgual improvements will be made to each of the far project intersections. Individual intersection inQYVVeoents include the following. A. 57th AWMM/UniveYsity Averse 1. awx a traffic signal pedestal to light standard. 2. Install pedestrian pushbutton station an sahthwest corner. 3. install additional r—tirb Und left-turn signal irr]icatians. 4. Adjust hand holes. 5. New controller relocated B. 61st Avenue/University Avenue 1. a ange traffic signal pedestal to light standard. 2. Install pushbutton station on southwest corner. 3. Install emergency vehicle pre - ®option device an each mast arm. 4. Adjust hand holes. 5. New controller relocated C. 73rd Avezare/University Avenue 1. avenge traffic signal pedestal to light standard. 2. Install new pole foundation and relocate mast arm pole. 3. Adjust hand holes. 4. Zeuporary signals. D. Osborne Aaad/University Avenue 1. Change traffic signal pedestal to light standard. 2. Install urgency vehicle pre- empticn devices on each mast arm. 3. Adjust nand holes. 8B Barton- Aschmen Assoclates, Inc. July 6, 1988 Page 3 7he estimated costs for the above bgvvvemmits are st=arized in the attached sheets. 7ese cost estimates are subject to minor revifidGm as base data and design decisions are made. Please review this infc- I and cam=* freely. yaw input at this point in the design process is critical as ymw approml will enable the project to proceed into the detail design ptase and ultimate review by the Minnesota Department of TYansportatian. As per ate' previous disalssians, Barton - Aschm mopes to proceed into detail design tasks no later than July 18. Thank you in advance for ymw cooperation. Please contact me directly if you have any questions regarding this submission or the proposed project. Sincerely yours, I&W v Barry . WarYler principal Associate SiW:jkc ODCD OD t r. 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NS I V 10rINO�NLD�AC4H%pM cm, C; 01 Q1 p1 01. fC 88 88°8888888888 88 •. ..N.N..p........ .. NN N�r- Ir1�QVN'�NNIO'1�N 11�tn N �8AM%Dg'�E��N�I N > � : w •wwwMww • . • . • .> F%, �� vi�aaaaav;r�r�r�c���v;a e I Ik I _ _ 9_ WPM ...All N N M I N\ M N N �J Ti • .f ,I ,f __ j - j T j �I • _ - BG cow OD O �o a m in 8 8 88 8 co q NO IA N C 01 tlt or tlA 8 8 8 8 N Als N N 3 an n a� I 0 i 1 9 8 8 8 88 M 8C 88 Off► " . i N (q Mb erf d� tL1 N Iz 01 N N !� r. ff). a 8 8 8 . . . . e to C\4 N N n N rA A A A 6 C\4 I 1 IA N N f- 8I 81 UCNIVFRSI IX AVENUE CMWaD= Page 8 of 8 7RAAFFIC SIGNRL naMNEMEMS July 6, 3.988 57th 61st 73rd Osborne Item Unit Avernus Avenue Avenue Road C wxp Pedestal to Licht Standard L.S. 14000 14000 14000 16000 Push-Button L.S. 1000 1000 New Left -Turn Signal L.S. 4000 Adjust. Hand Holes L.S. 1000 1000 1000 1000 EVP Devices L.S. 4000 4000 New Controller Relocated L.S. 8000 8000 Relocate Mast Arm L.S. 8000 Tegx ary Signals L.S. 25000 Subtotal 28000 28000 48000 21000 Grand 4bta1 = 125000 4W WATT HPS wo TYPICAL LIGHTING UNIT w =T. 13 FT. C:? io FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY M E M O R A N D U M To: Jock Robertson, Executive Director Fridley HRA From: Richard D. Pribyl, Finance Director Regarding: Reimbursement to the City for Moore Lake Water Quality Improvement Date: September i, 1988 The work that was done on Moore Lake to maintain water quality because of the increased redevelopment has neared completion. The HRA has been presented with the project cost on past occasions. We will be providing to the commission members at their meeting a detailed accounting on the actual costs of the completed portion of the project, and an estimate of the cost to complete the project. The city will be asking for the reimbursement of the actual costs expended todate, and one final bill at the close of the project. OUSING and REDEVELOFMENT AU I "Uti iY COMMISSION MEMBERS: LAWRENCE COMMERS. CHAIRMAN DUANE PRARK VW GNIA SCHNABEL W ALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY )IDD TD: Nasim Qureshi, City Manager Rick Pribyl, Finance Director John Flora, Public Works Director t£Mfl FROM: Jock Robertson, Community Developnent Director tEMfl D=: November 18, 1987 REGARDING: HRA Public Improvements Projects On November 121 1987 the HRA approved the previously discussed public improvements within the Tax Increment District for construction in 1988 (see attached resolution). These include: A. TWo demonstration segments on the University Avenue ,000 Corridor 5500 (57th - 61st and 73rd - Osborne) . . . • • • B. FricULy Plaza Parking Ramp . . . . . . . . . Est. Cost 51400,000 C. Rice Creek Road Upgrade between Central Avenue and Hi"ay 65 . . . . . . . . . . . . . . . . . . . . . Est. Cost $ 600,000 D. Moore Lake slater Quality improvements CFhase I and Phase II) . . . . . . . . . . . cost. . . $ 500,000 E. North Area Springbrook Water Quality Pond improvement Project No. 173 . . . . . . . . . . . . . . . . . . . Est. Cost $ 350000 the resolution authorizes the staff to prepare the necessary documents f or City Council action and subsequent contract administration. Barton Aschman has been retained by the HRA to design the Corridor plans and SEH for the Rice Creek Road upgrade. Boatman and Associates has been requested by City Council resolution on November 9, 1987 to inoorpDrate the Plaza Parking Ramp plans into the Civic Center Renovation Project and Hickok and Associates have designed the Moore Lake Phase I and II improvements. City staff is designing the Springbrook watershed pond. *As I understand, the next step will be for us to see that after plans are peed, they g: to Cwmcil for approval. Then we will set up procedures ft bid advertising, contract approval, construction management, City paymsrts, monthly status reports and HM reimbursements. EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (6 12) 571 -3450 FRIDLEY, MN 66432 EXT. 117 ,as V JOB HOUSIM i In r. I OJ?lJEStl' jUnERTM NEUMO, 1 12, 1987 PAGE 3 but was possibly the City paying for things that should have been paid for. by ? Msybe the City could approach Subterranean in a tactful way and ask them to better explain their billings. Mr. Newman stated he shared with the staff some of the ss concerns as those expressed by Mr. Meyer. Be suggested that this item be continged until the next meeting in aatUr to allow City Staff to talk W both Subterranean and Sunde Engirreer3=ig privately in order to make sure that everything was in order. Mr. Raber•tscn stated he was coed ortable with that request. Staff would In 12 back to the next meeting with maire information regarding these change orders. a. University Avenue Corridor - 51.5 million b. Public R3W - $1 million C. Rice Creek Road Diversion - $0.6 million d. Moore Lake Water Quality - $0.5 million e. North Area Ponding - $0.35 million Mr. Robertson stated these were the items reviewed by the JRiA at their joint meeting with the City Coz=U on Thurs., Nov. 5. 7hese five items were approved by the HRA for action for projects for 1988. MOTION by Mr. Prairie, seconded by Mr. Ramussm, to approve Resolution NO-HRA 7 -1987, "Resolution Authorizing Improvement Expenditures for Projects within the Tax Increment District for Construction in 1988 ". 4. OONSIDERATION OF DIFdOT= S.E.H. TO CCMPLEM FIM PLANS FOR RICE CREEK ROAD Arm SUB141T TO CITY CCUNCIL FOR CONS'IR=ION: Mr. Robertson stated that an Aug. 13, 1987, the JIM authorized S.E.H. to prepare the detailed plans and provide for An inspection for a specified amount of m a ey. Wmt was now before the Commission was a procedural matter where the HRA was directing S.E.H. to work through the City Council as the MA's billing administrator, and the HRA was agreeing to pay back the City Council in a monthly mariner. Ibis was the same type of arrangement the HRA had with the cocitracU an the Lake Pointe site. Mr. Meyer stated that in the resolution, in the first "WfJF.JBM ", it stated: "..tie Housing &Redevelopment Authority authorized the execution of a con- tract with Short- Elliot- HendridItson for the of the final plans for the t of the Rice Creek Road from T.H. 65 to Central Avem3ea. Mr. Meyer stated neither the City nor the EM has seen the final plans, and then in the next to last paragraph of the resolution, the HIFR was resolving to pay the City on a monthly basis for the cost of the street improvements 11 INFOWATIOH FOR THIS ITEM WILL BE AVAILABLE AT THE MlEgTIW. MEMORANDUM TO: Jock Robertson, Ommunity Development Director EWSB -271 FROM: Nark L. Burch, Assistant Public Works Director DATE: August 23, 1988 SUBJECT: Change Order No. 2 for Street 7mprovenent Project ST. 1988 -1&2 We sulmitted Change Order No. 2 for Street 7mprovenent Project ST. 19BB -1&2 to the City Council .at their August 22, 1988, meeting. The Cot=il approved the Charge Order for $22,857.30 which includes storm sewer piping for the Midwest Van facility upgrades per the owners' petition and street repair and replacement for the additional roadway muck excavation. This Change Order will increase the HRA cost of the Rice Creek Road project by $11,145.30. Please inform the HRA of Change Order No. 2 at their September 8, 1988, meeting. MB /g 3/6/2/8 12 MY& Erig.nce(,ng SeWef Watcr Parks Streets Maintenance MEMORANDUM TO: Jock Robertson, Executive Director, HRA PW88 -290 FROM: Mark Burch, Assistant Public Works Director DATE: September 1, 1988 SUBJECT: Change Order No. 3 for Street hnprovement Project ST. 1988 -1&2 We will be forwarding to the City Council for consideration Change Order No. 3 for Street Improvement project ST. 1988 -1&2 on September 12, 1988. This Change Order is necessary to incorporate changes in the signal system at Rice Creek Road and T.H. 65 which have been ordered by the Minnesota Department of Transportation and additional soil corrective work necessary in Rice Creek Road. Change Order No. 3 will increase the cost of the Rice Creek Road project by $52,095.50. We Mca;rnern that the HRA approve Change Order No. 3 at their meeting On September 6, 1988. ?B /5 3/6/2/17 13 FF crty FMa CITY OF FRIDLEY ENGINEERING DEPARTMENT 6431 UNIVERSITY AVENUE M.E. FRIDLEY, MN. 55432 September 8, 1986 C. S. McCrossan Construction Co., Inc. Box 247 Maple Grove, MN 55369 Re: Change Order 0, Street Improvement Project ST. 1988 - 1 i 2 Gentlemen: You are herebv ordered, authorized, and instructed to modify your contract for Street Improvement Project ST. 1988 - 1 i 2 by adding the following work: ADDITION: Item Approx. Unit Amount Quantity Price Muck Excavation 2,000 C.Y. 14.25 $8,500.00 Select Granular Borrow 3,000 C.Y. $5.50 $16,500.00 72' RCP Arch Pipe 10 L.F. $114.00 $1,140.00 Electrical Modifications Lump Sue $25,955.50 $25,955.50 to Signal System TOTAL ADDITIONS $52,095.50 TOTAL CHANGE ORDEk: Original Contract Amount $651,807.20 Contract Additions - Change Order No. 1 13,901.00 Change Order No. 2 122.857.30 Change Order No. 3 $52,095.50 Revised Contract Amount 1940,661.00 Submitted and approved by John S. Flora, Public Works Director, on the 8th day of September, 1968. Prepared by --------------------------------------- - - - - -- Checked by John 6. Flora, P.E. Director of Public Works 13A Page 2 C. S. McCrossan Construction Company, Inc. Change Qrder No. 3 September 8, 1988 13B Approved and accepted this ---- - - - - -- day of ------- - - - - -, 1988, by C.S. McCrossan, Inc. C. S. McCrossan Construction Co., Inc, ------------------------------------- Thosas Kenney, Project Manager Approved and accepted this ---- - - - - -- day of ------- - - - - -, 1988, by the City of Fridley, Minnesota ------------------------------------- Willias J. Nee. Mayor -- ----------------------------------- Masis M. Aureshi, City Manager 14 :ITY OF FRIDLE's PUBLIC :ORES DEPARTMENT 6431 UNIVERSITY AVENUE N.E. FRIDLEY. MINNESOTA 55432 FROM: City of Fridley Engineering Division RE: Estimate No. 4 Period Ending: B-15-81 TO: Honorable Mayor and City Council City of Fridley 6431 University Avenue N.E. FOR: TALBER6 LANN b LANDSC Fridley, Minnesota 55432 100 WILSHIRE DRIVE MINNETONKA, MN 55343 DATE: AU6UST 16, 19BO LAKE POINTE DEVELOPMENT MAINTENANCE PROJECT 4181 STATEMENT OF WORK ESTIMATED UNIT QUANTITY THIS 70Tk CONTRACT ITEM QUANTITY ----------------------------------------------------------------------------------------------------------------- PRICE UNIT ESTIMATE TOTAL AMOUNT - - - - -- Maintenance Services 1.00 33.750.00 LUMP SUM 6.143 0.572 19.285.71 --------------------------------------------------------------------------------------------------------------------------- TOTAL $19.285.71 !PJMMARt: Dricinal Contract Amount $33.150.00 Contract Additions $0.00 Contract Deductions $0.00 Revised Contract Amount $33.750.00 Value Completed To Date f19.285.71 Amount Retained 151) $964.29 Less Amount Paid Previously $13.741.08 AMOUNT DUE THIS ESTIMATE $4,580.34 CERTIFICATE OF THE CONTRACTOR I hereby certify that the cork performed and the materials supplied to date under the terms of the contract for this project, and all auth z chances thereto, have an actual value under the contract of the amounts shorn on this estimate (and the al antities on the final estimate are correct), and that this estimate is just and Sorrect and no Dart g the 'Amp t Du This been received. / By -- ------ - - - - -- - - -_� -- Date _ f Cc ra lied (Tit) CERTIFICATE O F THE ENGINEER I hereby certify that I have prepared or examined this estimate, and that the contractor is entitled to oavment of this estimate under the contract for reference project. CITY OF FRIDLEY, INSPECTOR �1 By Check 1PPRPAGEI`AG RPAGE2`AGP RPAGE3`AGPP Date 7 — 16_ o Respectfully Submitted, hn 6. F1ora,P.E. Public Narks Director 14A SUS: • ! .BAN ENGINEERING, INC. X875 Highway 65 N.E. P.O. Bog 32308 Minneapolis, MN 55432 Projects 88130 MOORE LAKE DRIVEIN SHOREWOOD PLAZA CITY OF FRIDLEY 6431 UNIVERSITY AVENUE N.S. FRIDLEY, MN 55432 INVOICE ,4B Invoice No. 1193 August 26, 1988 PROFESSIONAL SERVICES FOR THE PERIOD ENDING AUGUST 13, 1988 ----------------------------------------------------------- - - - - -- SURVEY SERVICES RENDERED& FOR REWRITING WALKWAY & SIDEWALK EASEMENT $ 69.60 ALONG MOORE LAKE DRIVE TOTAL INVOICE DUE 69.60 CUSTOMER COPY TERMS: NET 10 DAYS. FINANCE CHARGE @ 1.3% PER MONTH. IF YOU HAVE QUESTIONSi PLEASE CALL 571 -6066. TO: FRIDLEY H.R.A. FROM: CITY OF FRIDLEY RE: BILLING FOR PERSONAL SERVICES FOR AUGUST, 1988 PERSONAL SERVICES: August TOTAL OPERATING EXPENSES: 7,751.48 7,751.48 Postage 27.19 Advertising - Parking Ramp 101.96 Concrete Curb /Otter 1,645.00 Construction Management 2,600.00 Electricity 210.78 Inspection Service 430.57 Inspection Service 387.48 TOTAL 5,402.98 TOTAL FUND 236 $13,154.46 H.R.A. LABOR DETAIL NAME HONE DEPT 236 HOURS PAY PENSION TOTAL Shirley Haapala 02 30 6.40 96.22 10.10 106.32 Samantha Orduno 02 30 2.00 31.70 3.69 35.39 Samantha Orduno 02 30 3.60 57.06 6.52 63.58 Shirley Haapala 02 30 6.40 96.22 10.10 106.32 Nasim Qureshi 02 30 11.44 370.93 36.51 407.44 Nasim Qureshi 02 30 12.16 394.28 16.76 411.04 Richard Pribyl 03 30 8.00 213.86 25.15 239.01 Julie Burt 03 30 2.00 40.18 4.70 44.88 Carol Bartlett 03 30 1.00 8.78 1.03 9.81 Barbara Ridout 03 30 2.00 23.97 2.82 26.79 Sharon Fetting 03 30 41.00 562.85 66.19 629.04 Sharon Fetting 03 30 33.00 453.02 53.28 506.30 Julie Burt 03 30 3.13 62.78 7.39 70.17 Barbara Ridout 03 30 9.00 107.86 12.67 120.53 Julie Burt 03 30 2.88 57.76 6.74 64.50 Richard Pribyl 03 30 11.20 299.40 34.07 333.47 Carol Bartlett 03 30 2.00 17.55 2.07 19.62 Donna Saba 06 30 14.50 120.79 14.20 134.99 John Robertson 06 30 10.00 232.54 27.34 259.88 John Robertson 06 30 9.00 209.29 24.61 233.90 Donna Saba 06 30 12.50 104.13 12.25 116.38 TOTAL FOR DEPT #30 3,561.17 378.19 3,939.36 Elsie Hanscom 03 31 1.00 9.61 1.01 10.62 Elsie Hanscom 03 31 3.00 28.83 3.03 31.86 John .Flora 06 31 4.00 110.53 12.78 123.31 John Robertson 06 31 16.00 372.07 43.75 415.82 John Robertson 06 31 29.00 674.37 79.30 753.67 TOTAL FOR DEPT #31 03 37 5.60 1,195.41 139.87 1,335.28 John Flora 06 32 4.00 110.53 12.78 123.31 John Robertson 06 32 7.00 162.78 19.14 181.92 John Robertson 06 32 7.00 162.78 19.14 181.92 TOTAL FOR DEPT #32 436.09 51.06 487.15 John Robertson 06 33 7.00 162.78 19.14 181.92 John Robertson 06 33 2.00 46.51 5.47 51.98 TOTAL FOR DEPT #33 209.29 24.61 233.9 Richard Pribyl 03 37 4.00 106.93 12.57 119.50 Julie Burt 03 37 8.00 160.72 18.79 179.51 Richard Pribyl 03 37 5.60 149.70 17.03 166.73 Julie Burt 03 37 16.00 321.45 37.80 359.25 H.R.A. LABOR DETAIL NAME HONE DEPT 236 HOURS PAY PENSION TOTAL Mark Burch 06 37 10.00 207.51 24.40 231.91 John Robertson 06 37 4.00 93.02 10.94 103.96 Mark Burch 06 37 15.00 311.26 36.61 347.87 John Flora 06 37 8.00 221.06 26.00 247.06 TOTAL FOR DEPT #37 1,571.65 184.14 1,755.79 TOTAL PERSONAL SERVICES FOR AUGUST ----------------------------------------- ----------------------------------------- 6,973.61 777.87 7,751.48 DATE 09/08/88 CITY OF FRIDLEY - WA PAW 1 PROW P008 ' CHECK REGISTER CHECK RUN BATCH # :0009 002 HRA VENDOR DISC. JOB DESCRIPTION INV # PO /INV # SEQ # PCNT NOXT ACCT NUMBER NMBR MESSAGES 1796 CHECK- PREPAID T00023 TALBERG LAWN & LANDSCAPE SERVICE CONTRACTED, NON-P EST 3 00090 -01 FONUMQ0.0000 4,580.36 DR455 -20200 ACCOUNTS PAYABLE 4,580.36 CR455 -10100 CASH t TOTAL VENDOR f 4,580.36 1797 Hf* CHECK- PREPAID fff* SDO032 SOLIDIFICATION, INC SERVICES CONTRACTED, NOW 005247 00091 -01 FONIKIO.0000 2,293.92 DR452 -20200 ACCOUNTS PAYABLE 2,293.92 CR452 -10100 CASH t TOTAL VENDOR s 2,293.92 1798 *H* CHECK- PREPAID **H F00026 FRIDLEY STATE BANK INVESTMENT 00092 -01 FOMA W.0000 31,000.00 DR701 -10400 INVESTMENTS, AT COST 31,000.00 CR701 -10100 CASH TOTAL VENDOR f 31,000.00 1799 tm CHECK- PREPAID 800123 BOARMAN & ASSOCIATES PROFESSIONAL SERVICES 00093 -01 FOKINIO.0000 4,233.15 DR450 -20200 ACCOUNTS PAYABLE 4,233.15 CR450-10100 CASH TOTAL VENDOR f 4,233.15 1800 CHECK -WAID BDO170 BARTON- ASDflAN ASSOC., INC. PROFESSIONAL SERVICES 47289 00094 -01 FONtWD.0000 778.60 DR460 -20200 ACCOUNTS PAYABLE 778.60 CR460 -10100 CASH TOTAL VENDOR flil s 778.60 1801 CHECK- PREPAID CDO044 CASSERLY LAW OFFICE LEGAL SERVICES FOR AUGUST 00095 -01 FONUHOO.0DO0 775.00 DR450 -20200 ACCOUNTS PAYABLE 775.00 CR450 -10100 CASH LEGAL SERVICES FOR AUGUST 00095 -02 FOWS -0000 600.00 W455 -20200 ACCOLWS PAYABLE 600.00 CR455 -10100 CASH LEGAL SERVICES - AUGUST 00095 -03 FONUfJ60.0000 1,600.00 DR460 -20200 ACCOWS PAYABLE 1,600.00 CR460 -10100 CASH TOTAL VENDOR s 2,975.00 1802 +mot CHECK - PREPAID "Now FOD023 FRIDLEY, CITY OF REIN. CITY -CK 22138 SUNDE 00096-01 FONUKIO.0000 4,186.50 DR455 -20200 ACCOUNTS PAYABLE 4,186.50 CR455 -10100 CASH TOTAL VENDOR f 4,186.50 1803 DECK-PREPAID FOW23 FRIDLEY, CITY OF PERSONAL SERVICES-AUGUST 00097-02 FONUHJO.0000 1,335.28 DR450 -20200 ACCOUNTS PAYABLE 19335.28 CR450 -10100 CASH PROFESSIONAL SERVICES 00097 -07 FOW100.0000 2,600.00 DR450 -20200 ACCOUNTS PAYABLE 2,600.00 CR45D-10100 CASH DATE 09/08/88 PR1'I PO08,, CHECK RUN BATCH # :0009 VEIL DESCRIPTION INN # PO /INN # ADVERTISING 00097 -08 PERSONAL SERVICES - AUGUST 00097 -03 PERSONAL SERVICES - AUGUST 00097 -0 PERIL SERVICES - AUGUST 00097 -05 UNITILY SERVICES 00097-09 SERVICES CONTRACTED NON-P 00097 -10 SERVICE CONTRACTED- NON-PR 00097 -11 SERVICE CONTRACTED HON-PR 00097 -12 PERSONA. SERVICES - AUGUST 00097 -01 COHNHUNICATIONS 00097 -06 TOTAL VENDOR 1804 *H* CHECK- PREPAID F00072 FIRST TRUST 3,000.00 ADJUSTMENT TO ESCROW ART. 00098 -01 CITY OF FRIDLEY - FRA 1,658.40 DR460 -20200 CHECK REGISTER 002 HRA TOTAL VOW ffff $ DISC. 1806 CHECK- PREPAID ffff SEQ # PCNT XQW ACCT MAIBER FOMM.0000 101.96 DR450 -20200 3,000.00 BMI -20200 101.% CR450 -10100 FONUJH0.0000 487.15 DR451 -20200 3,000.00 487.15 CR451 -10100 FONWVO.0000 233.90 DR452 -20200 233.90 CR452 -10100 FOMA010.0000 1,755.79 DR455 -20200 69.60 CR451 -10100 1,755.79 CR455 -10100 F0MU130.0000 210.7818455 -20200 210.78 CR455 -10100 F0MU190.OW0 430.57 DR455 -20200 430.57 CR455 -10100 FONUNGO.0000 387.48 DR455 -20200 387.48 CR455 -10100 FOMU LO.0000 1,645.00 DR455 -20200 1,645.00 CR455 -10100 FON M.0000 3,939.36 DR460 -20200 3,939.36 CR460 -10100 FOM.0000 27.19 DR460 -20200 27.19 CR460 -10100 $ 13,154.46 FOKW.0000 *"* TOTAL VENDOR f 1805 CHECK- PREPAID ffff HDW19 HERRICK & MMM LEGAL SERVICES - AUGUST 00099 -02 FON KT0.0000 402.14 DM -20200 402.14 CR382 -10100 402.14 306.00 DR455 -20200 306.00 CR455 -10100 LEGAL SERVICES - AUGUST 00099 -01 FOMUVJO.0000 1,658.40 DR460 -20200 1,655.40 CR460 -10100 TOTAL VOW ffff $ 1,964.40 1806 CHECK- PREPAID ffff I00049 IBJ SCHRODER BANG( & TRUST FISCAL AGENT FEES 00100 -01 FONUH10.0000 3,000.00 BMI -20200 3,000.00 CR381 -10100 ffff TOTAL UH]+tDOi $ 3,000.00 1807 1 CHECK -WAID i*ff 500088 SUBURBAN ENGINEERINHG CORP. PROFESSIONIAL SERVICES 1193 00101 -01 FOMM.0000 69.60 DR451 -20200 69.60 CR451 -10100 TOTAL VENDOR ffff f 69.60 *Ht TOTAL NUMBER OF CHECKS WRITTEN : 000000 **" TOTAL DOLLARS FOR CHECKS WRITTEN : t PAGE 2 JOB *lBR MESSAGES ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH SITS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH ATM M � ACCOUNTS PAYABLE CASH VTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH 68,638.13 ffff LAST CHECK MU'BER : 00179;