HRA 07/14/1988 - 29655r"'r�
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CITY OF FRIDLEY
I�USIl�IG � RIDIIJIIA�!' AZTI�RITY MTNUTFS. JULY 14, 1988
CALL � O1�ER:
Chairperson Co�r
Authority meeting
1�LL (�T� :
M�nbers Fresent:
M�nbers Absenta
called the July 14, 1988, Housing & Redevelopment
o�ler at 7:12 p.m.
� Cca[¢ners, Virginia Schnabel, Duar� Prairie
Meyer, Walter Rasnussen
Others Present: ock Rcabertson, �ecutive Director of HIZA
im Hi11, Acting City Nlar�ager
ulie Burt, Asst. Firsrnce Officer
ntha Ozduno, N�r�g�nent Assistant
ve N�vman, HRA Atton�
�m Casserly, 215 S. 11th Street, Suite 200, Mpls.
ennis Rens, Superintendent of Schools
zdon Sangster, School Boazd - District 14
u& June Lur�clgZ'P.71, 343 Kellogg B�vd. , St. Paul
� C,c�mers. The C�mners CcQ[R�anY
ruce Lunclgren, Security Dc�elognent Corp.
ew� Johnson, Security Develolanent Corp.
ruce Peterson, Security Develo�anent Corp.
ul Stirother, 752 0 Market Place Drive, E1den Prairi.e
Bureau, Rosewood. Corporation
ve Et�ibson, 7545 Office Ridge Circle, Eden Prairie
illi.am Fogerty, 12340 Fadisson 1�1. , Blaine
eiyl Stinski, 1614 Berne Ci�le
rgezy Fe'hl ing, 1314 Marquette
n Cnristenson, Bossa.rd.t Christenson
vid Ktroos, Boarnian & Associates
APPId'�TAL OF JUNE 9. 1988. HOUSIlVG & RIDEVIIAPMEN!' AUTI�RITY M]1WTES:
1�TIDN by Mr. Fa sen, seconded by Ms. Schnabel, to apprave the June 9,
1988, Housir.� & elo�anent Authority mir�utes as written.
U1�N A VOICE VOTE, VOTIlVG AYE, CHAIRPERSON CDMNIl��RS DF�'_�1RID THE MOTION
(�,RR.7� UNANIl�DUSLY
1. TAX
Mr. Newman sta.ted.
Prairie wauld mt
interest.
Mr. Robertson sta
amer�nent to the
LEV IE.S :
wanted to r�te for t,h.e record t,hat both he and Mr.
�rtici�ting in any discussion due to a conflict of
that the 1988 session of the Legislature passed an
law which essentially allaas for a mecrianism for school
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HOUSIl� &
,� districts to recw
the school d.istric
bomis have been so
HRA sells bonds fo
usirig the present
raises the mi11 ra
extra tax revenue
Theref ore, if bot
resolution, agr�
on the timing of w
indicate that it w�
14, 1988
x the Pxcess tax incr�nent in tax incn�nent districts if
: has raised its mi.7.1 levy through a referend�n after the
.d. Essentially, the purpose of tha.t is at the time an
- a tax incr�nent distri.ct, they pzoj ect aut the incr�nent
mill rate. If the school district then subsequently
:e for other reasons, the HRA is essentially collecting
hc�r d.id r�t origirslly foresee they were going to get.
h the School Board and the City Council, through
:o that refur�cl, then that is possi.ble. The law is silent
ien that occurs. A consezvative readirig of the law would
�uld be an annual type of refurx�l.
Mr. Robertson stat he has reviaNed this and believes that the potential
exposure on this or the HRA would be samething in the neighborhood. of
$100, 000-200, 000, eperxling on which districts essenti.ally agreed with the
City Council, ar�d e City Council had also agreed.. The potential for the
school districts s as follows:
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.
.
Mr. Rabertson stat
,� James O'Nlc�ra of B
1988, in which Mr.
impairirx� the 'con
�yment of the res;
revernie mte would
with the City's ge
/"�
11 - $ 10,000
13 - 33,000
14 - 115,000
16 - 43,000
the HRA had received a response he had requested f rom
�gs & Morgan, the HRA borid attorney, dated July 13,
'Meara had stated: ".. . scxne care must be taken to avoid
3ct' t.�at exists with the bond holders concerning the
�tive �ligations frc�n the tax increment. The limited
e of �rticular concern here, but care needs to l� taken
ral obli�tion tax incr�nent issues as well."
Mr. Robertson stat Mr. O'Meara had al� stated he would be happy to assist
tlze City ar�d the RA in assembling and reviewing that infozmation and
deternii.nirx.� what igations or possibilities �ist in this regazd.
Mr. Robertson stat he had also talked with Julie Burt, Asst. Fir�ance
Officer, and she i in the pnxess of directing about a one-month analysis
of the HRA' s�l i� ions on �y ing those bonds .
Dr. Dennis Rens st�
the amenc3ment to tx
approachirx� the HR�
City Council on th�
to those rever�ues,
of the long range Y
and, hopefully, in
involved in d.iscus:
Anthony in tenns of
better j ob of prw�
year process in d
effectively, and tY
�ed Mr. Robertson l�d vezy clearly and succinctly defined
: statute that affects this issue. School Distri.ct 14 is
and askir� for the HRA's support as they approach the
a issue. The School District would like to gain access
�ecause it is important to the School District in terms
ulget and in ternns of n�e.intaining px�gxams for students,
improvirx� programs for students. ThEy are also currently
Lons with Spri.ng Lake Park arrl Columbia Heights and St.
hvw they might merge scane of their resources and do a
iing options for students. They have been through a two
�veloping a study designed to allaw th.em to do that
� have mt been able to implenent that study currently
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,�-� because of lack f funding without negatively impacting programs for
students. They al see accessing these fur�ds as an apportunity to do that.
So, they are reg,ue ting the HRA's support because the School District feels
this has immed.iat and some long range implications for tri.e schools in
Fridl�, as well a Spring Lake Park and Coltunbia Heights.
Mr. Ccxners asked
the City Cour�cil
Mr. Robertson sta
dorie before that
about what th.e f i
ar�aers yet.
at the timing was for the Srhool District in approaching
th this request.
it was his reaction t1�at they have to have the aralysis
ng can be set. The City Council will ask questions
ial implications are, and the staff d�es mt have those
Mr. Gorolon Sangste stated this levy applies only to the ref erendum money
which was passed s sequent to the time the borrls were issued.. It should be
pointed. out that e wlwle school mi11 levy, �rticularly the part that is
state- imposed, ha contirnied to ir�crease a�rer the years and the additional
rever�ues due to t are mt affected.
Mr. (�sserly sta the State Legislature has posed an additional problem
for the City, and t is the impact of el�minating homestead credits and
haw it is �ing led into local gaverrIInen.t aids. What cities are startir�
to find is they ma , in fact, l�ave substantial deficiencies in tax increnent
d.istricts. He th ght the Legislature was goir� to ha.ve to correct some of
^ these p�lens in e r�ext session.
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Mr. Robertson stat the HRA wi11 pzobably need to retain the sezvices of
i�lr: O'N1�ra in o r to do the aralysis, and he would like authorization to
do- that.
Mr. Co�cuners stated it was the general concensus of the HRA to obtain the
seivices of Mr. O' ra to proceed with the aralysis of the HRA' s position
with this issue. ully, they will have more infonnation by the next HRA
meeting and. wilt b able to arrive at scgne kirrl of decision.
2. �NSIDERATmN OF LUL�IDG P1m1�SAL: Mr. N�nan sta.ted tnat at the last
meetirx,�, the HRA a riz ed an additiornl 30 day extension on Mr. Lur�cl.gren' s
letter of credit. t extension was received in a timely fashion, and the
letter of credit ha Leen extended to July 26.
Mr. Lu�gren stat he had a meeting conf irnned for Nbr�c7ay, July 18, at 10: 00
a.m. in his office which will be attended by Bob 0'Brian, President of
Centennial N.fortgage Teny Chuvala, C�iief U�xle�riter, Mr. Jensen, President
of The Bank of Spri ield, and hiniself. He stated this was a meeting that
vaas pr�nised for la t Tuesday, aml which he had been led to believe would
have been held a w prior to that. At this meeting, they will know the
rnm�r that can be ccomplished under the first mortgage, and he believed.
th.at witl�.in two ys of Ju1y 18, they will be able to produce all the
fundirx,� for the fi t phase. As far as he ]��a, they were mt talking about
any different a than what has been previously discussed. He stated
thirags look good, t it is goir� to take time.
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Mr. Nt�yer stated
mean the HRA has
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t i.f the letter of credit expires on July 26, does this
have a sp�cial meetir�?
Mr. Newman sta.t that once Mr. Lu�gren has a specif ic proposal put
together, it wo d be his recommendation that the HRA call a special
meetirx�. In 1 igh of the hi story of this proj ect, if there wa s to be
ar�ther extension nted, the HRA should look at what is being proposed,
rather than def 'ncr it to staff.
Mr. Meyer stated�would be in favor of a special meeting, assuming there
was scane valid p ess at the meetir� on Nlor�7ay with Centenni_al Nlortgage.
Mr. Robertson stat that sta.ff had indicated to the HRA pr�iously that the
HRA mi.ght want to t jointly with the City Council on July 25 to review
the rec�nendatio from tlie architects and engineers on the plaza ramp
construction and c vic center remodeling. Or, the HRA coud defer it to
their regular Au t 11 meeting. If they did wish to meet jointly with the
City Cour�cil on J y 25, they could also take this matter up at that tune.
Mr. C�aners stated that if Mr. Lundgren does make a pn�posal af ter the July
18th meeting, would staf f have enough time to analyz e this proposal to
detennine whether t was f�.sible for the HRA to consider on July 25, or
should they wait til the August meeting?
Mr. Newman stated
JuYy 25. Staff s:
goirlg on and a ge:
Mr. Prairie and Ms
special meeting on
shou7.d be able to have an arralysis put together by
be able to give the HRA a general sense of what is
flavor of what is being proposed by July 25.
Schna.bel stated they would not be able to attend a
lv 25.
Mr. Cca�eners stated they should p�ably get an extension on the letter of
credit �st the Au t 11 m�ting. If Mr. Lundgren has a f inn proposal
before then, the H could address it on Ju7.y 25th, but if t.1�.ere is no
qu+�rrm, it could taken up at the August meeting.
Mr. Lundgren stat
exter�ded f or ar�oth�
or add any more ex
time bind arr3 expe�
meeting.
Mr. Nc�wman sta ted
granting an autom
dif f erent f rc�n last
they set up the ori
people f�an. Centenr.
90 days, ar�d mw it
?n. light of what ha
should be imposing
granting ar�ther ex
he had no problem in getting the letter of credit
30 days, but he did mt want to cause any irore prablems
meetirigs t1�an was necessazy; ho�aever, they are in a
to have s�ne information for the HRA after Monday's
hat from staff's perspective, he had a problem with
tic 30 day extension. Staff has not seen anything
month. They have already granted one extension. When
�irnl 90 day period, they did so af ter talking to the
.al wh,o were veiy adama.nt thEy could do this within the
has been granted an extension for an additioral 30 days.
� trar�spired with this proj ect, it was hi s f eel ing they
the requirement to see something signif icant before
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� Mr. Cce�ners stat he had m pmblan with tl�at, except the problem that it
was possible there would mt be a quoxl;¢n of HRA mgnbers on July 25, and he
did r�ot think they wanted Mr. Luu�xlgren's letter of cred.it c�lled beca.use of
a default of that ture.
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Mr. Prairie askec� if they could give staff the authority to grant an
extension if staff�felt there were sufficient grounds to do so.
Mr. Newman stated e HRA has done that before, and so they could certainly
do-it again; but ere should be s�ne qualiiyir� factor if staff is asked to
do it again. It i goirx� to be a vezy important decision.
Mr. Rasmussen sta ed that if it was the HRA's intension to grant an
extension on Mr. Lundgren's letter of credit providing Mr. Lundgren's
proposal was fea ible, then they should be able to grant that 3 0 day
extension r�r,v, ra er than having a special �etir�.
Mr. Newman stated t if tlhe HRA was seriously considerir� grantir�g arx�ther
extension on the 1 tter of cr�l.it, he would suggest they extend it until
August 15, since e HRA's �xt meeting was August 11.
NY�I'IDN by Mr. Mel�e , secor�d.ed by Mr. 1}asmussen, to grant an exten.sion on Mr.
Lurxlgren's letter credit to August 15, 1988.
TJL�N A VOICE VOTE, ALL VOTIl� AYE, Q�AIRPER.90N �NIl�JERS DECLARID THE N3JTION
C�,RRIID UNANIlvDUSZ .
Mr. C�ners stated he would aqain caution Mr. Lunclgren that he cannot wait
un�il the last mi. te to get all this irlfonnation to staff and then expect
sta.ff to have it lyzed. for the HRA by the August meeting. The HRA was
veiy relucta.nt to end this letter of credit any further.
Mr. Rob�rtson statE
HRA was considerir�
received a directi`
the gateway to the
57th & University.
of what tlie acqui
r�ighborhood of $7F
improvenents. The
should be.
Mr. Robertson stat
i�uo dif f erent dev e
consultation with
policy that where t�
pick the develaper.
the HRA would dml �
ir�ta.nce, the Sprira
two dif f erent devel�
the histozy of thi.s started about a year ago when the
the plans University Avenue Corridor Plan, and they
� fxYan the City Council to loolt at potential proj ects at
'ity at the south end. of the Corridor in the vicinity of
This spring staff prep�red a prelimirary rough estimate
ition costs would be, and those costs were in the
,000. That cost did not include street and utility
RA tlzen directed staff to prepare estimates of what that
that in the meantime, the City received responses from
pers of their intense interest in the site; and in
e N�an, they told the developers it was the HRA' s
HRA has site control, the HRA review the px�posals ar�d
In the case where the developer has site control, then
clusively with the developer who had site control; for
rook Apartments. Within a week of �Gh other, they had
ers, eac��. with options on different parcels. Staff has
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attempted to be
reviewed one px�
this meetir�g to
Mr. Robertson sta
pivposals.
Mr. Joe Cca�¢ners. 7
si.x mennbers of thE
President and avr�
company, located
menbers of the de�
issues they thin
redevelopment at �
Included in their
(1) a short
(2) actual pl
(3) teYrant mi
(4) cor,struct
(5 ) cc¢[enents
(6) comments
(7) c�merits
(8) ca�xnents
(9) firlar�ial
1988
fair as possible in reviewing the proposals. The HRA
al at the June meeting, and the other developer was at
sent their proposal.
Mr. Casserly has dor�e a firar�i.al aralysis on both the
ie C�aners Cca�ny, stated he was vezy happy to have all
.r develoFanent team at the meeting. He stated he was the
- of The Cca�¢ners C�ny, a real estate and development
in Roseville, Minnesota. He stated he and the other
�lopment tc�am would like to co�¢muii.cate to the HRA the key
are vezy pertinent regarding their proposal for the
'th & University which they have termed "57th Place".
>resentation were 9 it�nns :
sketch of the main menbers of the
t-.eam;
and specifications
sch.edule
site acquisition
the propert,y ar�alysis
the proforn�a cost statenent
the proforma operating stat�nent
Mr. Joe Cce�uners s ted he would like to introduce the three principles of
Securii.y Developme t Corporation, partners in this venture: Mr. Bruce
Lundgren, Senior V'ce President; Mr. Dewey Johnson, Vice President; and
B ruce Peterson, sident and Owner.
Mr. Bruce Lundgren
located in Eden P
shopping centers,
red.evelopinent work-
had. been shr�pping c
r�ed redevelognent,
taking mnretail bu
resto�ation and occ
Mr. Bruce Lurxlgren
has included quite
the Cii.y and the de
that have included
ha.ve dor�e pr�j ects
Lakes: C�mbridge: F
done regular pro;j ec
ta.ted Security Develo�xn.ent Corporation was 12 years old,
3irie. The purpose of their com�aany was to develop
ot only from tlze grourid up on vacant larid., but also
redevelo�►ent work includir� buildirigs which at one time
aters or contir�oue t� be, but aging has caused. them to
expansion, upc�ating, etc. Arx�ther was to partici�te in
ld.ings, occasionally industrial buildings, and doing
sional historical register-type projects.
ated it was important to stress that their experience
f�v proj ects that have involved a partnership between
laper, at least a joint venture of efforts--proj ects
AG grants, state grants, tax incremet programs. They
i Minneapolis (C�lhoun Square) ; Grand Rapids; Detroit
�er Falls, Wisconsin; and Albert Lea. They have also
� that entail takir� nonretail bui.ldirx,�s arr7. coriverting
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�Y 14. 19.88
than to retail. ey have dor� these kir�ds of proj ects in Dul.uth, Red Wing
(St. James Hotel & Mall).
Mr. Bnice Lundc
Leaurel Village,
Forest Lake; Bl�
Mr. Bruce Lur�dgrer
complete experti
opportunity here
redevelo�nent.
sta.ted t,hey have a number of proj ects in process in
ip centers in Plymouth; Oakdale; Hudson, Wisconsin;
arrl North St. Paul.
sta.ted they were essentially a f ive state compa.riy with
e in shopping centers. They were grateful for the
in Fridley and would like to be part of Fridley's
Mr. Joe C�ners i roduced his architect, Mr. Pa.ul Strother, ar�d Ken Burmu,
th� construction nager, who was Principal and Owner of Rosewood
Corporation which Rosc�aood Construction.
Mr. Joe Commers s ated that regarding himself, he has been in the
construction busi ss all his adult life; first as a subcontractor in a
family business su lying to ma.jor general contractors. Concurrently, he
has been irlvest ng and developing real estate, strip centers,
office/warehouse , apartments. He presently owned a retail center in
Blo�nington and in Ros�ville, and had substantial real estate holdings.
Mr. Paul Strother
prvposed cor�f igura
n orientation to go:
the ee:st, Holiday
such that the traf
Aver�ue and 57 th.
residential site.
side with bernting
howed. an aerial photo of the site. He described the
ion of the site. He stated the service road changes its
round the site, maintainir� the existing residential to
o the mrth, and thc�r have oriented the shopping center
ic airl �rkir� activity was all oriented to University
he lesser active portions of the px�operty are toward the
They are further screening the proj ect on the residential
nd landscapirig.
Mr. Strother stat one of the criteria they 1�ad to work with was Rapid Oil
C�ange wanted to s on the site, and so they integrated. t�iat furiction irYto
the retail center nd located txi�n adjacent to 57th Avenue. Traffic will
enter trie project off 57th Avenue, and the Rapid Oil activity will be
confined to one with the retail off to the north.
Mr. Strother stated
interest on the �xir
more vertical appea
in s�ne instances.
and rear, so it wil
in a variety of loc
mechanical equi�aner:
rear.
that in their discussions with the City, there was an
of the City to maintain a more dawntown appearar�e or a
ance. 'Ib achieve that, they have added �ne verticality
He stated the bui.lding has developed facades, both front
look good. f�a all sides. They have raised the parapet
tions for interest, but it was raised throughout so the
. was screened from the road and the neighbors to the
Mr. Strother stated part of the street scape that is being developed for the
University Avenue Corridor was a lighting system, and they will be
ir�t.egrating that li ting systen within t11e pn�j ect.
^ Mr. Meyer asked if
was er�ugh parking for the pxoj ect.
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JUI,Y 14
/'� Mr. Strother sta they have been able to meet City Code in all instances,
so there are n,o v riances requested. According to City Code, th�y are
required to have 9 stalls,-and 129 stalls are being pravided. They feel
this parking is ve adequate.
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Mr. Bruce Lur�grer:
per 1,000 sq. ft.
study about �hree
for centers of thi
ft. above that. N
sq. ft. with 9 ft.
ft: stalls and 6 c
is mnnally requiz
stated the way the center is laid aut, they have a 6 car
�tio. The Urban Larid Institute that compiled a parking
�ears ago reccm¢nends as low as 4 cars per 1, 000 sq. ft.
; type. Th� are praviding at least 2 cars per 1, 000 sq.
rst centers they are buildir� today are 5 cars per 1, 000
wide �rking stalls. The Cii,y of Fridley is requirir� 10
.rs per 1,000 sq. ft., so they were above and beyond what
�1 for a retail center.
Mr. Bruce Luridgren stated his specialty �vas in retail leasing which he has
been doirx� for ab� t 11 y�rs on all types of centers. Lately, they have
�en doing a lot small specialty centers. Strip centers are so much
different today n they were in the 1960's, so they have to accentuate the
terant mix and bri in a quality tenant ernrirormlent along with quality
design.
Mr. Bruce Lundgren stated that in this piroj ect, they are incorporating 1?�apid
Oii on the sout end of the site, and on the north end they are
incorporating a" amily style" resta.urant (3,500-4, 000 sq. ft. ). The
balar�ce of the s will be of vari.ed uses. He stated he has r�t been out
leasing at this po' nt, but they do ha.ve the capabil ity irrhouse to do the
jc�b. He believed they have t1�.e largest staff for shopping centers in
Mirmesota. They f confident about the leasability of the project, and it
will be a quality easing j ob. The uses will include primarily retail,
restaurant, scene f ice arrl service type businesses.
Mr. Bruce Lundgren stated one of the concerns by city staff was if they
could ir�orporate pid Oil into a retail shopping center. He stated they
feel it ca.n be do , because they have had experience in doing that in 3-4
locations. As wel , Rapid Oil (owned by Ashland Oil) has had similar
experier.�es in oth r midsvest ar�s. He stated Mr. Johnson has leased three
different buildi with retail next to Rapid Oil.
Mr. Dewey Jahnson �
re�resentative for
r�xt to Rapid Oil.
Park, Bzooklyn Pa.r]
locations.
ated. they l�ave had the good. fortune of being the leasir�
he avr�r of na.pid Oil arx3 have leased with good success
So�ne loca.tions where this was done were in Highland
and Maplavood.. He stated he had pictures showing these
Mr. Joe Commers s ted they feel very confident that they can start
construction on Ap ' 1, 1989, and complete the proj ect by Oct. 1, 1989,
with the idea, th.a this summer and fall would be for complete site
acquisition and tim for location of the street and public utilities.
Mr. Joe Cc�¢ners sta�ed that regaxdi.r� site acqui.sition, he had the follaving
key dates and irrfo tion:
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Feb. 9, 1988:
Mar. 25, 1988:
Apri1 5, 1988:
May 10, 1988:
June 26, 1988:
Mr. J� Cc�uYters
Met with Mr. Robertson and Mr. Robinson when they
expressed that the HRA was interested in upgradi ng
57th/University ar�d the UnSversii.y Avenue Corridor. He
was told if he was interested in the development to go
ahead arrl move aggressively on the options to purchase
the subj ect �rcels. At that time, he and Mr. Lundgren
aggressively pursued �he owr�rs t�ward site acquisition.
He was also told by City Staff that they wanted to
maX;m;�e the site and provide sc�ne pedestrian amenities.
He was told by staff (Nir. Jim Robinson) that the three
things they were going to evaluate was site control,
quality of t1�.e develognent, and wl�at the developer was
willing to pay for the site. At that time, another
develoer l�d entered the process.
Mr. Robertson told Mr. Lur�clgren that the HRP, was ready
to- mave ahea.d witri a substa.ntial write-down on the
P��YY -
He sent a letter to Mr. Robinson infoanirxJ him of their
c�npleted and sigr�ed fsrst option to purchase the old
Rapid Oil site. This was the first successful option to
purchase of the subj ect property af ter 5 weeks of
r�gotiation with attorneys of Ashland Oil in Tulsa,
Oklahcana.
They acquired the option to purchase the Rainko and
Icera Schuur propert,y at 5755 University Avenue, which
was the second largest parcel in the total complex of
propeerty. This gave them 67�5 of t,h.e total parcels of
the larrl, and the only pa.rcels that ranain at this time
are three snall lots, antl one dupl e.x which is al ready
for sale on the market. This also gave t�i.en the contxnl
of the frontage of botli University and 57th Avernies.
the property ar�lysis.
Mr. Bruce Lundgren reviewed tlze proforma cost statement and the profon�a
operating stat�nen . He stated the profonna. cost statenent was to shaw the
HRA the way th�r 1 at the pr�j ect fr�an a cost point o� vi�a arrl why th�
think their price or the land was as much as they can afford. based on
cxx�¢non cost for pu ir� together this type af develoFanent.
Mr. J� C,c�mners st
be $1,550,000, and
at $355,000 of lar�
of all uti.l ities o:
all buildngs on th�
of any soil contam
soil contamiration
:ed they have estimated the cost of t1�.e reta.il center to
hey wi11 pick up $350,000; the City's portion estimated
writedawn. The City will be responsible for relocation
the site, � reloca.tion of the f rontage road, remaval of
site, and war.rantirig that the property is free and clear
ation, beir.g responsible for renaving or correcting any
�mblens.
Mr. Joe Con¢ners s ted they estimate new taxes on the property to be
agpznximately $2.75 sq. ft. or $52,212.50 anr�wally. The net gain and/or tax
�
HOUSIl� & R�F3TEGD� AL�RI'1'Y N�rIl�1G. JiII,Y 14, 1988
� incr�mment would be $40,775.57 based. on 1988 taxes �yable of $12,436.93 for
the current property a�vners. They have suggested that public impravesnents
mt be included in that tax increnent to 1� firanced by this p�roject. They
are suggestirx� that it be funded somne other way, separate from the land
writedown.
Mr. Joe Cataners stated that on July 1, the day he handed the proposal to Mr.
Robertson, Mr. Robertson told him that the city engir�ers had come up with
scane estimates for street impmvanents of $54, 000, the shallaw water loop
would be $25, 000, and the sanitazy scaer would be $75, 000--for a total of
$154,000 high and $75,000 lau.
Mr. Joe Cc�aners stated. they simply canr�t afford a tax assessment based. on
the fact that they are already gayir� $2.75/sq. ft. for taxes. That would
be at the high end, and they cannot burden their retailers any further
withaut causir� severe hazd.ships.
Mr. Joe Ca[runers stated that, in stmunazy, they suggest the City go ahead with
tlus proj ect with the assLUnption that th.is corner is of a high priority, and
that the City wi11 have to mak+e a c�r¢nitment to do this proj ect. The City
was paying scane mon,c� rlow for the street rnlocation and public impravments,
but they are goirx3 to improve that whole corridor. They believe this corner
is goir�g to set the tone for the whole University Avernie Corridor along that
east side.
^ Mr. Joe Commers stated they have done tlzeir work and have been vezy
cca�¢ni.tted to this proj ect arid to making this proj ect happen. They now
really have what the City r�eds ar�d wants. They control 67� of the total
�cicage arx� can go faster because of what -they control. They are looking
fonvard. to workirx3 with the HRA and with staff as they pursue thi.s mutually
benef ici.al proj ect.
�
Mr. Meyer asked hav Mr. C�ners felt about having I?�apid Oil in the pn7j ect.
Mr. Joe C�¢ners sta.ted that, as pointed out by Mr. Lur�dgren, they feel very
confident that they can incorporate Rapid Oil into an upscale retail
develo�xnent. fiapid Oil has made money on this corner, and they value this
corner veYy �hi�ly. The only way they could really approach a development
on tlti.s corner was- to incorporate Rapid Oil into the proj ect. They did not
see that as a negative, but as a plus.
Mr. Meyer asked if ariy kir�d of market study was need.ed to predict the
success of this develalanent.
Mr. Bruce Lundgren stated they have done sane prelimirary site studies and
hav�e been familiar with this site for scBne time. He thought the �in issue
they were looking at on University Avenue was the access. With good access,
their strength anol. viability as a retailer was enhar�ced. This site has both
access and visibility. They have done a market run on the trade area and a
ccxnputer profile, and-they feel cor�fident this site vai11 produce a quality
retail mi.x, ar�d they also feel strongly about the leasability of the site.
It is a good retail site.
-10-
I�USIl�G_ & RID�VIIAL�lENP AU'P�BJRIl'Y MEETIlVG, JULY 14, 1988
n Mr. Jim C�sserly stated. he had tried. to approaclz t�.is as a problem of what
the total costs will l� tfl the HRA. He was mt pa.ssing on the merits of any
p%posalf his missionwas to fir.d out wha.t it costs to do the project. He
stated. he thought that almost any px�oposal for this site was not going to
�y for itself in teans of what the total cost is going to be for the HRA.
The reason for this is a real honest red.evelopment proj ect. Because of
that, they already have existing structures on t1�.e site, and that means
there is already a tax laase. The way the tax incranent works, they f reez e
the la�se so when they �nave the existing structures and put something new
on the site, the first gart that is put on new goes to just make up for what
they already had there, so they only get the additional part of the
incr�nent. As they work with tougher and tougher sites to redevelop, this
pmblan becaanes �re difficult, because with a redevelopment, they already
have an existing base, and they always have the increased cost of
acquisition (relocation, d�nolition, and the costs of getting rid of the
buildings th�nselves) . So, the problen Y�ad r�thir�. to do with the�roposals
beir� �resented, but a prablen with redevelopment. It was an HRA problem,
r�t a developer problan.
Mr. Casserly stated staff inet with both d�elopers separately because they
wa�ited to firrl aut what they felt they c:ould really �y for the properi.y ar�d
what kind of taxes could really be supported. In his j udgesnent, both
develoers were being veiy, very accura.te. They are 8 cents apart in what
they think the lmsees can affozd. to �y, and they are reasonably close on
what they think the market value of the site is. However, the most
^ unportant thing to note was that r�either d�elo�ent, even if they take 13
years of tax ir�r�nents, wauld ha.ve er�ugh to be a self-supporting activity
on this site. The HRA has to put s�nethir� addi.tioral into the site to make
it work. -
Mr. C:�sserly r�viaraed. the public costs for both WirYEield Develalanent and The
C.oiianers Cc�qaany/Security DeveloFanent Cozporation p�oposals.
Mr. Bi11 Fogerty ask� if there was any analyzation of both proposals,
because he ]� that WirYfield D�velo�anent would accept $154, 000 -$175, 000
in special assessnents to the p�perty. That was the base starting price
for then. He sta.t�1 their uses f or the property were dif f erent f rom the
other dec�elaper in that they would have more professional-type uses. Their
anchor t�nant is a Yaank, and they have a fiizn. cca�mitment for the bank. They
are also willing to put up a letter of credit to start the proj �t.
Mr. Joe C�ners stated that with the Winfield proposal or analysis, the
costs would be substa.ntially higher beca.use of relocation costs and the
lawsuits would be several h�ur�dred dollars on the �,rt of Ashland Oil. lrapid
Oi1 values the site ve:cyy hi�ly and are mt willing sellers. He stated they
have no relocation costs on the major �rcels they control.
Mr. Joe Coir¢ners asked what the scenario would be if they j ust put the
writedown in there and left the city improvements out to be funded
elsewhere.
� Mr. Casserly stated if thc-� pull $150, 000 out of this, they would pull out
-11-
I�U3Il�1G & RID�TE�D�P AiF1'l�JRl�'Y N�!'Il�,. JULY 14, _ 1988
,^ another $150, 000 and pmbably arx�ther $50, 000 af ter that, so they would be
reducing this by a good $350,000.
Mr. Joe Cc�ners stated he thought it would be much more attractive to the
HRA if the City impravements were funded either through the City or
elsc�vhere.
Mr. Meyer stated that at the last joint City Couricil/HRA joint meeting, the
City Couricil stated t'hat even such things as maintenance of HRA proj ects
would have to be furxled with HRA funds. This included the bea.utification of
University Avemie Corridor.
Mr. Joe Cc�rmiers stated if there were other fund.s, th.ey would suggest that
for a successful develo�anent, the City improvenents be dealt with in amther
manr�r, other than putting the buzden on this pro;ject.
Mr. Meyer stated he understood Mr. C�uners' point, but just wanted him to
krx7w what the City Couricil had said.
Mr. Rol�rtson sta.ted that beca.use of this situation, staf f did not want to
ge� too far ah�d until they get scme reaction from the HRA as to whether
the HRA wished to proceed nQw that they have a much more sophisticated
firarici.al aralysis of the type of subsidy this project was goirx.� to require.
Mr. Larry Commers stated that if the HRA paid $150, 000 for site
^ im�xvvenents, would they be reducing the overall additional revenue they
would c�ranit by $300, 000-400, 0004
Mr. Casserly stated that was correct.
Mr. Bill Fogerty, Winf ield Development Corp. , stated he had seen the
shortfall, arxl he ]cr�ew what the HRA has to go through to deal with that
shortfall. He sta.ted they would like to do this proj ect; and if they Y�ad
s�ne assuxance fn�n the HRA to do that, they would work their awn rnunbers
and work it at "0". Because of the �Lype of building they would be doing,
they could do the internal as well as the �mprovenents. They had r� problan
with the $150,000-175,000.
Mr. Meyer a.sked if the Planning Caruni.ssion could � involved in this. Oould
they get s�ne ir�put or feecmack fx�n the Planni.ng Commission on these two
pzoposals7
Mr. Lany Cc�¢ners stated the HRA has never followed the process of involving
th� Planni.rag Cc�aanission before, but they certainly could do that.
Mr. Newman stated before they could go through that process and get any
me�nir�ful ir�put f�xn the Planning Cc�nission, the HRA must first pravide
scane �rameters to staff and the develaprs as to what assistar�e the HRA is
willing to pn7vide.
Ms. �el stated the HRA has always acted independently of the City or
/� the other conmissions. She was mt so cor�erned about getting the Planning
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I�USIlQG & RID�VE�O� AUTi�R�I'Y N..�EE!'IlVG, JULY 14, 1988
� Ca�oission involved, but her cor�ern at this point was the fact t1�t the HRA
has not faced an issue like this where they are being asked to put up to
orie- tlzird of the money into the proj ect. She thought Mr. C;�sserly was
correct in sayir� this was a whole new thi.ng for the HRA ar� it was total
redevelo�,anent, which the HRA has mt really �rtici�ted in before. She did
r�t know the �rameters or sta.ndards well enough to f eel comf ortabl e with
say ing what the HRA' s investrnent should be. She f el t t�here were too many
uranswered questions t�hat the HRA, philosephically, has r�ot decid�, let
alorie actt�ally making a c�unitment like this for this kind of ironey. Beyond
that, haw does mal�ing tlnat c�anitznent affect the HRA dolla�wise in their
total amaunt of money already pledged to spend on certain proj ects? The
City Council has said the HRA will be funding mainte.nance, so where is the
eml to the HRA's cxtr¢nitment? She just felt there were a lot of things that
r�ed.ed. to be detennir�d that have mt been discussed previously.
Mr. Ken Bureau, Rosewood Corporation, stated he has worked with cities
around the Twin Cities area, and a good example was Bloomington.
Bloamington has always had the philosophy that the main roads coming into
the city should have major bui.ldings at the intersections, so people know
they are coming into Bloomington. He thought the one thing University
Aver�ue lacked was any definition t13at people are c�ni.r� irito Fridley. This
corrnr will cost �re because of relocation of the x�d, but then there is
nro�re properLy down the Corridor that will not cost as much to develop. If
they are ever goirx� to do anythi.ng with Universii.y Avernie, the HRA is going
to have to start with this end. He could not think of a developer that
^ would go into the middle of the block without something starting at this
southern end.
Mr. MEyer asked if there was an overall develo�anent plan for the Ci�Ly.
Mr. RQbertson stated the City has a Comprehensive Plan which calls for a
c�anercial devela�anent in this area at this iritersection. When they f irst
got this indication from the City Council, staff did some schematics
alternatives. The la+v scale alternative was to retain the street and
utilties and just develap the garcels about half the size that was split by
the firontage znad. There was a medium scale alterrrative which encompassed
the assembly ar� rerouting of t,he street and utilities; and a more
co�nprnhensive sca7.e alternative involved more �rcels. Staff reviewed the
alternatives with Planning Co[�mni.ssion, City Council, and HRA last winter,
and it was the concensus ta go with the mediiuci alterrr�tive in sch.�natic, so
that has been the policy direction � to r�o�ra.
Mr. Casserly stated �he HRA has to decide if they are will ing to put
scat�ethirig into the proj ect aside fn�$n the tax ir�r�nent. They do not have
to clecide how nnich., but they have to first make the d�cision; othezwise,
they really do mt need to spe� any more t�me on thi.s. He stated this is a
red�elo,�anent problen. Both these d.evelapers have spent a lot of time, and
maybe the HRA would like to see what sane of the develapers' other proj ects
are like. Maybe th�r can select a redeveloper and suggest that there be an
exclusive arrang�nent with the redeveloper for a period of time, in that the
HRA would be willing to use their condenration authority to get the highest
i"1 quality project on the site. Also, he thought it would be worthwhile for
-13-
I�USIl�1G & 12�Q�VE�D�P AU7.�BJRITY MEETIl�. JZII,Y 14, _ 1988
� the City to have scaneone c3o a little analysis of what t,he condemnation of
tl�at property will entail. 'I'hat might help the HRA have a little better
Y.�rx71e on what their ccac¢nitment might be. It might be so far out of line
that it is mt worth considering. This is always a big problem when a body
is tiyirig t� select a developer based. on the quality of the proj ect; and
yet, ma.ybe scane developers are starting with different asst�anptions. He was
suggesting the HRA was going to have to decide if it was worth putting
something into the proj ect and whether they were willing to use
cond�nration, to select a redeveloper arrl give tl�at redeveloper a period of
time to come back with a project, based on the guidelines the HRA has
provided.
Ms. Schnabel stated this was a r�l valid suggestion, arrl she would like to
see those figures. She stated she would like to see a proforma from
Winfield DeveloFanent arxi scsne of these condemration figures for the next
meetirx� so they can start moving ahead.
Mr. Fogerty stated they need scene guidelines on what the City �zrticipation
wiYl be and whether they warlt Rapid Oi1 in or out of the proj ect, because
they could mt brir� n a bank �xt to Rapid Oi1.
Mr. Lar.ry Cce�¢ners stated the level of assistance is going to dictate the
type of buildirx� they can be put up, the type of terants they are going to
get, ar�d the type of iracoane they are goirig to generate.
^ Mr. Fasnussen stated the HRA has to decide philosophically vahat type of
detiela,�xnent they want on this corner.
Mr. Robertson asked the HRA if they were philosophically comfortable with
movirig into this whole red.evelopment mode arid were willing to create a
r�tive ta,x incrsnent d.istrict in order to get this level of develo�nerit.
Mr. Lany Cca�uners stated he would be agreeable to that coricept.
Mr. Meyer stated he was in favor of sc�ne deficit firsr.�ing to develop this
co�r. He thought Nir. Buraau hacl made an excellent point that no matter
which develo�anent is picked, this develo�anent can be the "key " to the lar�d
that runs to the north, and in a real sense is useful °seed money ° to
encourage the first line develoFxnent of the area. That, plus their previous
willingr�ss to sperrl money for other thirigs for the er�har��nent of the City,
m,aans they should agree in principle to be willing to d� deficit firrancing.
Mr. Prairie stated they were talking about a real heavy involvement in a
small area, and the percenta.ge af m�r�y here for develo�anent was the hi�est
it has ever been.
Mr. Larxy Ccarm�ers stated they also have to be vezy careful about setting a
precedent.
Ms. Schrabel stated she wanted to p�int aut that several years ago when this
was ori.girally discussed with the City Couur�cil about settirrx� the tor�e of the
� City and creating sQmething attractive th.at tells people this is the
-14-
I�USIl�1G _& 1ZID�VECOPT�TP ALFt�RtTY MEE'PIlVG. JTJLY 14, 1988
� entrarice to Fridley, the initial location was where the Valet N�otor lot was.
She agreed at t�at time to that location because that was �re visible from
the freeway. She was not so sure 57th/University had quite the same
visibility or rncessarily set the tone for the City as the first location
does; hawever, they have also talked a long time about relocating the
sezvice n�ad on this particular piece of praperty.
Ms. Sch�bel stated s,he di.d have a prablen with the dollar amounts that have
been discussed at th.is meeting. If they are j ust going to talk about a
def icit d.istrict to cr�ate scane- impetus for sc�nething el se to happen along
the Corridor, that was one thing; but she felt she must warn the other
menbers of the HRA that at this point she was not prepared to support the
kind of mor� beirx� discussed. There were too many other devel�anents alor�g
that whole area t1�at are com'rng up, and they are going to need to spend
�ney on each one. She realized t1�is area was mt going to develop on its
avn; it will take--the HRA to get it going, but r�t to the extent of the
dollar amounts mentioned at this meetir.�.
Mr. Lariy CaRUners stated he would echo Ms. Schrsbel's co�¢nents. He had rw
opposition to some deficit financing as far as the concept and moving
fozwaxd, but the level of dollars will have to be a major factor. He was
prepared. to vote in favor of putting money into a proj ect on the basis that
th� mi.ght mt recaver all the �ney.
Mr. Newaan made the following suggestions to the HRAs
� 1. to decide whether or mt the HRA is willing to consider scane
type of deficient firar�cing depe�.ent on the qualii.y of the
d�relo�anent;
2. to direct staff to further explore and refir�e the cost of the
acquisition of the g�rcels;
3. to verify with each develaper the cca�anitrnents they have
proj ected;
4. to revi�v with �ch. develaper what their plans and cor�cepts
- vuould be with or without the benef it of corrl�u�ation.
Mr. Newman asked if the HRA members were comfortable with the above
suggestions.
Mr. Lany Cat¢ners stated he felt the HRA has sa.id "yes°.
Mr. Prairie stated he was reluctant to say '�ies" when he did not rcaally laxyw
what these meant.
Mr. C�sserly stated it also gives The C.ca�mters C�qaany/Security Development
Corporation the benefit in thinking in ternns of other temnts, if they think
that is a possibility. In the meantime, the City can explore the costs of
condenration on th.i.s site. The theozy behir�7. this is t,hat both developers
should be startir� with the same assiunptions. This has been the HRA's first
e�erience with this type of activity, arrl t�i.ey would li�e eveiyone to have
^ the same opportunity.
-15-
HOUSIl� & R��VEFJJ�t' AUTI�RlzPY MEETII�G. JULY.14, 1988
. � -
� Mr. Lany Cc�mners asked staff to contact Merrill Lyr�ch Realty to check into
t,h.� listed market values for the properties for sale north of the old
7�ntigo, plus the old Z�ntigo buildirig.
Mr. Casserly stated they would have the information requested. by the HRA
available for the rnxt meeting.
Q�airperson Cceruners declared a 10 mi.riute recess at 10:05 p.m.
C�irperson Cancuners rec:onver�d the meeting at 10:15 p.m.
3. CDNSIDERAT�iJN OF PL�,ZA RAMP CDI�'I'R[JCI'IDN AN[3_ QONSIDERATION OF THE SPECIAL
- HRA MEETIlVG :
Mr. Coa�eners asked Ms. Schnabel to update the HRA members as far as what
happened. at the last -joint City Council/HRA meeting regard.ir�g mairiterrzr.ice of
HRA proj ects.
Ms. Schrabel sta.ted the City Council has pretty n�uuch told the HRA there will
be rm funds with which to repair or maintain HRA projects. They are
reluctant to raise the mill rate, and they are reluctant to raise taxes.
Th� are in a firanci.al birrl th�nselves and feel the proj ects the HRA has
been asked to �xplore arx3 fur�c7. are also proj ects the HRA would have to take
on as an ongoing commitznent. The bottom line, on the parking ramp for
ir�sstar�e, was the HRA was going to totally fund the bu ilding ar�cl compl etion
^ of the parking xamp, and they were prob�ably also goir.�g to be assessed in the
future for their share of the lightir� costs, sriaw r�wval, etc.
Mr. Prairie stated the City Council had talked primarily about the
Uni.versity Avernie Corridpr.
Ms. Schnabel stated the City Council wants the HRA to establish a trust fur,d
to� be used. for �interar�e.
Mr. Cc�uners stated tlus subject should be placed on an agerida as soon as
posaible for discussion. The HRA needs to have scxne estimates on what each
of their projects is going to cost in terms of maintenance, and they ar�
going to have to look at those p�j ects they l�ave cr�r¢nitted to, wi11 Y�ave to
re-eximir�e future pr�j ects. Staff is goirx,� to have to work up sane rnmibers
for them. -
Mr. Robertson stated one of the conclusions that was hinted at the j oint
HR�1/City Cour�il meeting was that there are different i,ypes of proj ects that
will have tranerr3ously different percentages of nt�intenance; for instance,
the Corridor whicll will have a lot of landscaping, a lot of labor intensive
work, as opposed to the �rkirxx ramp which will probably have vezy little
mainter�ar�ce.
Ms. Schnabel stated a lot of discussion was about the lightirig. It was more
or less staff's decision to do the lighting, the Council agreed to the
lighting, but mw the HRA wi11 have to �y for it. Arxi, the HRA might have
�"� to pay for the electricity besides. Ir�surarice on the ramp vaas another thirlg
-16-
Ii�USIl� & R�IITEGOPMENr AUTHCJRITY MEETIl�G, JULY 14, 1988
,r1 that shauld be discussed.
Mr. C�aners stated it was never the understanding that the HRA would be
involved in the operation of pzojects. Is the HRA goir�g to be assessed for
mainter�ar.�ce of the Lake Pointe site? What about capital impravements for
the Lake Pointe site? Same munbers are goir� to have to be put t�ether for
the HRA to examine so th�r can make some decisions. These mm�bers could be
big and might, in fact, impact their ability to do other pr�jects.
Ms. Schrabel stated the HRA might not be able to affo�l to do the 57th Place
pn�j ect because of other �xpenses ccani.ng up on other proj ects.
Ms. Schrabel stated she has always said fztan. the veiy beginning that there
vaas going to � mainterrar�e on these proj ects- what was it goirx� to cost arrl
�vho was going to do it? Always, the ass�nption was t1�at the City was going
to do it.
Mr. Commers asked sta.f f to prepare this infornnation f or the HRA on a
proj ect by-proj ect basis.
Mr. Robertson stated he wanted the architect/engineer and the construction
mar�ager to be present to present the first cut on what the bids are for the
plaza ramp and answer any questions the HRA nu.ght have. Then, he would like
the HRA to d.iscuss how th� would like t� admini.ster t11is c:ontract. If they
decide to pnxeed with it, and when they want to make the decisiorr-at a
�,,, j oint meeting with the City Council on July 25 or def er it to August 11.
Mr. Robertson stated the total budget estimate based on the bids was
$784,554. Tl�t was si�ificantly under the earniarked budget of $1, 000, 000.
He would like to point out two things:
(1) Part of the $1,000,000 was a signage allowance, ancl he believed
it was between $15,000-20,000. That is not included because in
o�ler to expedite the progress, the architects have mt yet
desigr�d. the sigiage, and that can be added latert
(2 ) It dQes r�t include scme re�ir work and s�ne changes to the
plaza area itself. T.his was origirally ass�ned to be part of
the civic center budget. Since the HRA is we11 urxler budget,
and the plaza repair work will meet the criteri.a for tax
increnent firaricir�, would the HRA consider including the
re�irs to the plaza as part of the �rkirx� ramp scope
of work?
Mr. Ron Christenson stated the HRA had received a copy of a letter addressed
to Mr. Robertson frrxn himself dated. July 14, 1988, along with a copy of
"E�hibit A, Low Bid Stmunazy - Parking Famp°. He had the law bidders for the
civic center break out their prices for the-�rkirx� ramp ar�d these were the
rnunbers.
Mr. Meyer questioned Spec Section 05210 for Steel Joists in the amount of
$8;900 for the parkir� zamp. If they do mt have any steel joists in the
�, r�imp, why was it on the low -bid sLmanaxy? Also, maybe there should be some
-17-
I�USIlVG & IZ�EVE�DP� AUTH�RiPY N�PI1tiG, JULY 14, 1988
� exploration as to why the erection cost for Stnzctura7. Metal Framing (Spec
Section 05100i was so high at a cost of $15,000 for perhaps a very small
amount of structural steel.
Mr. Christenson stated Mr. Mc�er was correct, and the steel joists should be
deieted. He stated they have identified the legitimate lav bidders on this
particu�ar proj ect, but they still have to go through the qual if ica.tion
process.
Mr. M�yer asked what re�oair work were they tallsir� about for the plaza.
Mr. David Kroos of Boannan & Associates stated it was primzrily the cutting
ar�. patching around the building for construction purposes, the relocation
of lightir�, planting areas, sigrage, arrl a lot of �mall itens all basically
for the plaza.
Mr. M�rer stated the HRA is being asked to help �y for the repairs to the
plaza, but he thought they needed to know a little bit more about t,he
dQllars. He was mt vpposed t� the HRA agreeing to those itens, as long as
they krnw what things are comirx� arrl that it wi11 be und.er bid.
Ms. Schnabel sta.ted that based on the coaanents made at t.1�.e joint City
Council/HRA meetir�, had there been any redesign of the �rkirig ramp exits?
Mr. Ktvos stated the exits were discussed, along with the painting of the
^ ir�erior af the ramp, ar�d puttir� in a sour�d systen. Those items were not
incorp�rated into the design because of a time probZen of when the bids weiC
supposed to be in.
Ms. Schnabel stated. there was some real concern expressed by the City
Council about the access to the lower Fart of the ramp, its accessibility t�
the office building, and the legality of using ta.x increment financing
because there was a concern as to whether or r�t the ramp, in effect, has
access only to City Hall and is not accessible to the affice build.ing. As a
result of tY�at, there was the coricern of whether or mt it is a legiti.unate
use of tax increnem f irar�ir�, because then the ramp might riot meet the
cri.teria.
Mr. Ccs�¢ners asked who was going to harrlle the le�lities of this issue.
Mr. Robertson stated as soon as Mr. Jim O'M,�ra sent staff the summazy of
the 1988 legislation, he flagged tn.is question and consul ted Mr. O' Meara .
It was shortly before the joint City Council/HRA meeting. He described the
project to him and the provisions made for access to both buildings. Mr.
O'M�ra was cc�nfortable that th.is fit the intent of the legislation. At the
joint Cii.y Council/HRA meeting, questions of the access to the office
building were raised.. It was his jUd.g�nent that any details like whether
the door apex�d in or out could be changed without stopping the bidding
process for ariy redesign arrl still meet the state criteria. There was no
problen with this accorrling to Mr. O'Meara, their bor�d counsel.
^ Mr. Ca�miers stated that if this was true, then Mr. 0'Meara should put that
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�
I�II$Il�G & RIDEVE[O�Tr ,A�F,I'FDRITY N.�!'IldG� JULY 14, 1988
in writing to give the HRA scene ccgnfort.
Mr. Robertson stated the City Council was scheduled to take action on
awardir� all civic center contracts on July 25. At that same time, the HRA
could,reviav and apprave the plans for the construction of the plaza ra�rp.
The HRA menbers were in agre�nent with meeting j oiritly with the City Cour�il
on July 25; however, Mr. Prairie arrl Ms. Schnab�l would be unable t� attend.
Mr. Robertson stated the other issue that the HRA must decide on was how
th�y wished to ac7minister this contract (agenda page 3) . Those options
were: -
(1) to delegate all authority for contract administration to the
City Cour�il;
(2) to use the City as an agent to administer the contracts for
the architect arrl c:onstruction manager. (The HRA would approve
all change orders. This provides the I�RA with control wer
matters that could affect delays and cost wernu�s. )
(3) tfl ac7mini.ster all contracts--the construction marrager arrl
the arGhitect. (This would necessitate more HRA meetings to
address the time].y resolution of contract matters ar�d could
also result in the replication of activities with the City
contracts. )
^ 1�IDTIDN by Ms. Schnabel, seconded by Mr. Meyer, to adopt option #2 regarding
administratian of plaza ramp contrac�s: "The HRA to use the City as an
agent to administer the contracts for the architect and construction
mar�ager. "
UFL�N A VOICE VOTE, ALL VOTIl�IG AYE, Q�.AIRP`E1�SON CD1�IERS DECLARED THE 1�TION
C�RR.TED iJi�,NIl�DUSLY.
4. CDNSIDERATIDN OF RIDhVEfAPMEiY!' P1d�POSAL. F1�M C�IlYL_ STIl�SKI:
Mr. Robertson stated Ms. Stinski does rnt have a fornial pro�sal prepared
ye�. At the July 11th City Council meeting, he had told Ms. Stinski she
stiil had to solve the �rkir� problen with her maj or tenant. One of Ms.
Stinski's options in solvir� the �rkir� problen was to get a cross �senent
with the a�rtinen.t complex to the rborth. Staf f was directed by the City
Cour�cil to check into the a�rtment cc�nplex's present �rking situation and
see if the a�rtment complex had the required number of spaces by Code.
Staff had cx�pleted tl�at r�view just that day, and the a�aart�►ent complex
does mt meet Code. Thirty-three spaces are required, and. there are only 24
sp�ces. So, this cuts out one of the options for parking and makes Ms.
Stinski.'s pmblen a little tougher to solve. How�rer, Ms. Stinski did telr
the City Council on July 11th tY�at the amount of overflaw spaces might not
be as gr�t as ori.girally thought iraybe f�n 30 to as little as 10-12.
Ms. Stinski stated she would like a concensus
^ interested in her pzoj ect for this ar�, so she
Council on the �onir� for the eritire proj ect.
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f rom t,he HRA tha t they are
can proceed with the City
�.._.__ _� �.
I�IISIlVG & 12IDEVEGOPT� A�3tI�'3t MEEPIlVG. JUI.�� 14, 1988
� Mr. Rdoertson stated the City Council specif ically wanted the HRA to knaw
that they are veiy interestecl in the project; and the� understarnd that the
HRA is waitirig for the rezoni� before the HRA can take any action. If the
parkirx� situation can be solved, the City Council will take action on the
rc� onixig.
Mr. Cca�uners stated the HRA was vezy interested in getting that boarded up
house r�nwed fr� the property. The HRA was definitely willir� to look at
this proj ect as they are for-any other proj ects arid see what kind of
assistance they can give, but they canmt make any decisions until they see
a fo�nal proposal. The way the HRA has handled this in the �.st is t1�a.t the
develaper is aske� to come in with a proposal, review the proposal wit,h
staf f, arx� then staf f makes a�ranemlation to the HRA.
5. CDNSIDERATIDN OF S.E.H. CE11�GE O1�ER FUR RICE CREIIC 1�AD I1�1�7VEN�f!'S:
NlJTmN by Mr. Prairie, seconded by Mr. MEyer, to approve a change order to
S. E. H. for the Rice Creek Road improvanents in the amount of $3, 000.
UI�N A VOICE VOTE, ALL VOT]1QG AYE, CH�AIRPERSON CANIlyERS DECLARED THE 1�TION
c�,uRT�:n UNANIl�DUS�,Y.
6. OJ1�bSIDERATISJN OF CKANGE O�ER #5 �OR LAl�IDSCAPIlVG, IRRIGATION, AND LIGHTING
- P�JECI' #168 AT LAI� P�Il�TI`E: '+
^ N[�'I'IDN by Mr. Meyer, secor�ded by Ms. �1, to apprave Change Order #5
for Landscap�.rxx�, Irrigation, and Lighting Project #168 to Minnesota Valley
Landscaping, T�c., for the Lake PoirYte site in the amount of $'7,285.20.
UPDN A VOICE VOTE, Ai,L VOTIl�G AYE, Cg1AIRPER90N QJNIl�IERS DECLARID THE N3�TION
c�..RR'r�'n UNAriIl�JDU�LY.
7 . CLAIl�bS :
MOTION by Ms. Schnabel, seconded by Mr. Prairie, to apprave the check
register as stibmitted. -
U1�N A VOICE VOTE, ALL VOT71� AYE, C3TAIRPER.9�N mNIl��RS DECLARED THE NlDTION
cc�„RRIFn UNANIl+�IDUSLY.
8. OTHER BUSIl�SS:
Ms. Burt stated the HRA menbers had received c�pies of the annual firrancial
statenent. She would recce�¢ner�d the HRA menbers review it and present arly
questions-t� staff at the August meeting. It could be put on the agenda.
Mr. C'.�¢ners stated he would also like the HRA to d.iscuss the general ledger
at the next meeting.
hU�I�1�1;�� i�l�� �
^ Cha.irperson �ers declared. the July 14, 1988, Housing & Redevelopment
�E
�
I�USIlVG &�IIJE[O�P AUTi�RIl'Y N�PIl�1G. JULY 14, 1988
�
�, Authority meetir� adjourned at 11:16 p.m.
Respectfully submitted,
��-�f`��
L Saba
Recordirx,� Secretary
�,
�
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