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HRA 08/11/1988 - 29656Crl'Y OF FRIDLEY � HOUSIlVG & RIDEVIIAPA�NT AU��iORITY MIlVUTFS, AIIGUST 11, 1988 ('„AT,T, ZU O1�ER: Chairperson Carnners called �,Y�.e August 11, 1988, Housing & Redevelo�nent Authori�.y mee�ir�g to order a� 7:12 p.m. �LL CAT.S.� : Menb�rs Presen�: Lax�y Cateners, Virginia Schnabel, John M�er, Walter Rasnussen Menb�rs Absent: Duar.�e Prairie O�hers Presen�: Joc•k Rflbertson, F�cecu�ive Director of HRA Julie Bur�, Assista.n� Fir�ance Direc�or Saanantha Orduno, Marr�genen� Assistar� Dave N�anan, HRA A�torr� Jim Hi11, Direc�or of Public Safe�y J�m Casserly, 215 S. 11�h S�see�, Suite 200, Mpls. Gordon Sangs�er, 7169 Rivezview Terr., School Dis�. 14 Jim Furyason, 6381 �+�; re Drive, School Dis�t. 14 - Lou & June Lur.�.gren, 343 Kellogg Blvd. , St. Paul RQbeex�t Silvernian, 2200 First Bank Eas�, Mpls. Kevin Jensen, S�a�e Bank of Springfield !'1 Alan Rouse, 1786 Henr�pin Ave. S., Mpls. Jai & Shirrjae Suh, 12 Island Rflad, S�. Paul Joe Ca�uners, 2233 No. Ha�nlir.� Ave. , Roseville Bnzce Lund.gren, 7545 Office Ridge Circle, F]7d.en Prairie Bruce Pe�erson, 7545 Office Ridge Circle, E�11den Prairie Dew� Jahnson, 7545 Office Ridge Circle, IIden Prairie David.Erickson, 7545 Office Ridge Circle, F1den Prairie Willi.aia Foger�y, 12340 fiadisson Rd. , Blair�e C�r�l Slavick, Arkell Develognent N�.rk Clenens. Arkell D�relognen� Ron Christenson, Bossard� Chris�er�son David Kroos, Boamnan & Associa�es A�P1d�VAL OF J�Y 14, 1988, HOUSING & REDhVIIlJPN.�NT AU'giORI7.'Y MIlVUTE:S: I�'I'IDN by Mr. l�snussen, second.ed Ly Mr. Meyer, to approve �he June 14, 1988, Housing & Redevela�nen� Authoriiy mirsu�es as writ�en. U1�N A VOICE VOTE, ALL VOTIl� AYE, Q�ArR�'R9pN �N�RS DE�ARE'D THE 1�T�N C�RR�D UNANIlvDUSLY. Mr. Robertson sta.ted. he would like �o change �he agencla ar� have "Tax Iricrenen� Distric�s/Refund of School Levy" as the firs� i�en on �h.e agenda. 1. COI�SIDERATIDN OF TAX Il�TCRII�'1v!' DISTRICCI'SS/REFUI�ID OF SQ300L LEVY: ^ Mr. C.anmers sta�ed. �he HRA m�nbers had a co� of a let�er frcan Jim O'Me,ara -1- HOUSIlVG & RIDEVIIDPN�`1V� AU'II�ORITY MEETIlVG, AUG'[JST 11, 1988 � which was a follvwup t:o t-he HRA's earlier reques� �o him wi�h respec� �o �he refund of cer�ain por�ions of �hh.e �ax incremen� fund to �he school dis�ric�s. Ms. Burt staied tha� since the las� mee�ing, Mr. O'Meara had ccene �o �,he Ci�y and revi�raed th.e borid arrangenen�s tha� were made wit:h the bonds �hha� were sold ar.�d hvw they rela�ed tr:o �,his change in t,he �ax law. There are �hhrree situati.ons �ha� can occur. C��egoxy 3 str:ated �hat if �he distric�s are certified after �he last day of the bond sale, we will au�cuna�ically have �o provide tha� mor�y lx�cac �o �he Srhool Dis�ric�. The reason for tr�his is that we were mt planning on �hose funds when �he bonds were sold, so, in esser�ce, we did rn� need �han. Ms. Burt sta�ed situa�i.ons 1 ar.�l 2 are a lit�le bit different in tha� �,he dis�ric�s tha� were certified previously have bond requirenents for which �,lae increnen� was being pledged for the debt sezvice on those bond.s. Ms. Burt s�ated �ha� due �o the fac� that a couple of �he HRA's major developmen�s have m� gor.� �hznugh, they are mt gainir� the ir�crenen� �,hey had proj ected. in on those proj ec�s; �herefore, th..�y do no� have �he funds they origirally �hought �i.ey would have to pay �he deb� service on those bonds. So, �hey need �o find o�her �urces. Ms. Bur� s�a�ed Mr. Pribyl and s�aff's rec�anenda�ion, along with Mr. O'Meara's, was �hhat �hey do make the paymen� �o �h.e School District for n circ�mstar�e #3. Ur�forturrately. �ha� dollar a¢noun� was quite snall, $1, 674. The reason for �-h.is is �hha� �,he �vo distric�s �ha� i� appl ies �o are j ust beginnir�--�he Wirifield District and �he Shorewood Dis�rict. As of this poir.� in �ime, �he Shorcaood Dis�ric� is not ger.�ra�i.r�g arly incr�n.en�. I� will begin ge�rati.ng incranent next year; bu�, again, tha� amount will be snall. The Wir�ield dis�rict is ger.�ratir�g a snall amaunt of increnen�. Ms. Burt stat.ed they sYwuld look back in a year on �he o�hh.er distric�s and at tha� tame i.f t:he develognents are goir.tg a li��.le bi� str�nger, maybe �hey can come up with �-he op�ion of working in coopera�ion wi�h �he School Dis�ric� �o ge� tr�hen sane more mone�. But, right now, it would be uriwise for �.he HRA �o do any�hing like tha�-because �hc-y need the mor.� �o pay �,he debt seYVice on �he borx7�. Mr. GaYmers sta�ed �,hat, as he ur�derstood it, �-h�r j ust have a vezy small am�unt �hey are requi.red under the law tro re�urn �o �he schQOl districts, and �ha� was $1,674, and i� was st;aaff's and t:he a��orr�y's reca�¢ner�da�i.on �o do �ha�. As far as the otr�her alterna�ives of returning money, those were mt sta�u�ozy requi.renen�s but were discreti.orrazy; ar�d, it was staff's and �he at�orr.�y's recaY¢Y►enda�ion �Lhat wi�,h. regard �:o �hose alterna�ives, �th.�y would mt re�usn any moriey a� �his �ime. Ms. Burt s�ated tha� was correc�. They have pledged �hat money to the borxx�holders, ar�d they have an obliga�ion to �.he bor�dholders firs�t. ^ Mr. Casserly stated Nls. Bur� had suYUned �he si�ua�ion up vezy succinctly. The poir� �ha� is being made is �ha� because of �he s�age of develognent, -2- HOUS� & RIDEVEdD� Ai]�IORFt'Y NIEEPIl�IG, AiK�JST 11, 1988 '� �h� jus� do mt ]mQ+u �oday the amaun� of rever�oue that will be available. Mr. Go�lon Sangs�er and Mr. Jim Furgason fran School Dis�ric� 14 were in �he auciience. Ms. Burt sta�:ed ac�ually �-he $1, 674 was for School Distric� 16 . There was m money for School Distric� 14 at this time. The Shorevaood Disirict was �he only developmen� in School Dis�ric�t 14, aixl there were ru� bor�ds pl edged in �ha� dis�rict. Mr. Sangs�er s�ated he was a li�tle confused about �hh.e tuning arxl had sane qu�stions abou� it. Ms. Burt stated Mr. Pribyl had at�enpted �o con�act sane peaple fran Schaol Dis�xic� 14 to go over this wi�h thsn, bu� was unable to do so before he wen� on vaca�ion. She sta�ed staff could go over this in more dep�h wi�h. �he School Dis�rict represen�a�ives a� ar.��her �ime. Mr. Caruners s�ated tha� if �,here was scane issue on th,e tiuning and what ir�renen�s should be taken in�o considera�ion arid which increnen�s should r�t, he would suggest �-ha� sta.ff arrange a mee�a.ng wi�-h the Srhool District 14 Boaxd, ci�.y representr:atives, ar�cl Jim O'Meara �:o get �khi.s resolved. Mr. Rober�son ar�d Ms. But� agreed wi�h Mr. C.at¢ners' sugges�ion. /'1 NDT�IJN by Mr. Fasnussen, seconded 1� Ms. SGhi�bel, to approve �he s�atu�oxy refund in �-1ze �nount of $1,674 �o School Dis�ric� 16, and also to School Distric� 14 to the ex�en� �here is any refur�d due to �hem. UEOI+T A VOICE VOTE, ALL VOTING AYE, QIAIlZPER90N �N.�ERS DE(�ARED THE N.DTIDN C�R,RlED UNANIl�DUSI,Y. 2. Q�NSIl�ERATIDN OF LUU LUI�IDGREN P1d��SAL: Mr. Rober�son s�a.ted that a good stimunazy of �,he sta�.us of this proj ect appeared on ager.r7a �ge 1-F which was th.e second �age of Mr. Nc�aman' s Augus� 5, 1988, le��er. The th.ree it�ns lis�ed were �Y�.e itens of f inancial assis�a.nce �ha� Ntr. Lundgren says is needed: (1) a let�er of credi� for $700, 000; (2) addi�ior.al firar.�cir� in �he approx. amount of $2,300,000; and (3 ) ir.�er�� or wri�e-dawn of 2 1/4% on a l�n of $'1.922, 7 00. Mr. Rober�son s�:a�ed �hat fmn �he �ame in Jarwary when the let�er of credi� wa� due, Cen�ennial Mortgage was �he chief financial underwri�er and had ir�di.ca�ed that if there was arly problen wi�h. �,he financing package Mr. Lundgren had proposed, they could make that up with some equity par�icipa�ion from an equi�y pool. As the HRA could see, in the quasi-acceptance by Cen�enni.al N.�r�gage, �hat was r�� included; �herefore, ^ what �-hey had all h,oped in �eenns of a f irar�ial �ckage had r.�t occurred. -3- HOU$Il�TG & R�EVECOPMENT AU�30RIl'Y ME�'PIlVG, AUG[7ST 11, 1988 r'1 Mr. Robextson stated �hat because �Yi.ey have m� made subs�an�ial progress, i�-was m� only his judgenen�, bu� also Mr. Newman's and Mr. Casserly's callec�i.ve judg�nnent, tha� even �hough Mr. Lundgren has made a sincere effor�, he has failed ar�d �hat the HRA should �eennir�a�e their relationship wit:h him and cash his let�er of credi�. Mr. Rober�son sta.�ed Mr. Lundgren Y�as requested �ime t:o explain his posi�i.on mo�e fully, �o explain his letter, and to speak �o Mr. Newman's Aug. 5 let�er. Mr. Lundgren stated he could r.�� coaenen� specif ically on Mr. Ne�anan' s 1 e��er da�ed. Aug. 5, 1988, because he had rn� seen it before �h.is mee�i.ng. He had r�o� received his c�py. - Mr. Lur.�d.gren sta�ed he was disappointed tha� Cen�er�nial Mor�gage had no� cane up wi�. �he size mor��ge and/or �he �r�icipating mor�gage �,hey had assured hun and �he Ci�.y �hey wauld do. Ha�ever, �hey did cane up with a mort�ge piroposal, and �he HRA had �ha�. Mr. Lundgren s�ated he had explained �o s�aff �hat he believed �h.e �hree itens lis�ed in Mr. Ncranan's let�er can be ��ained before he would close. He sta�ed he ha.s asked for nine specific poir�s in his le��er dated Aug. 4, 1988, to �he HRA to find ou� where �,he HRA s�ood on certain things. Obviously, i.f �he HRA was seeking sane mor�y, he had to ]tr.� wha� �he amoun� was; ar.�d., depending upon how �Y�.e HRA would respond to �hese gar�icular n questions, �hat amount would vazy. Mr. Lurxigren s�a�ed. he believed he would need �o have scxc►e real evidence �ha� tr�h.e HRA had �-he ability �o have land contr�xol, and he �hought any otlzer develaper wi�1�. any ot�her mor�gage finn would rec�uire �-he same. He �uld m� pu� a package togeth.er }aased on tr�h.e timing of certain th.ings and then let it si� for 120 days. They have ac�ual cons�ruction bids, and thc� have aleady kep� �h.em on 65 c�ays. He mi�i� be able �o keep �h.ea a li�tle longer, bu� only with �he sub bidder's consent. He believed he was vezy close. He believed he had a proj ect �,h.e HRA �.nd the Ci�y wan�.s for �-his si�e: He believed �here was m evider�e tha� he Y�ad ex�er�ded in any fashion, in tesxns of spendi.ng money or �ame, �h.e exposition of ge�ting t,he �-hings th,a� were required. Mr. Lundgren s�ated witlz him a� �,he mee�ing were June Lundgren; Rober� Silvennan, his a��orney; Kevin Jensen, Presiden� of �he State Bank of Spririgf ield; and Alan Rouse, one of his associates. Mr. Lundgren s�a�ed he would like �:o have �he HRA discuss the nirae poir�s he ha.s lis�ed in his le��:er. He did r�� expec� �,he HRA to say "yes" �o all of then, bu� he would like an answer to each point, and he would like an extension. He st:a�ed he did no� �hink the HRA would find arzy other developer -wh� has worked harder on �hhis proj ec� �-han he has, but more �ime was r�eeded to consunmate �Y�.is particular proj ec�. He was reques�ing an ex�ension of 60 days. And, he �Yiought s�aff should be instructed �o work ^ ou� a develognen� ag.reanent. -4- HOUSIlJG & RF�EVEUD� Ai3�iORI�t'Y MEETII.QG. A[TG[TST 11, 1988 � Mr. Robertson s�a�ed. tha� before �he HRA could enter into a develognent agreemen� wi�h P2r. Lur�d.gren, �he HRA had �o have sane numbers, hvw �h.ose rnunbers were going �o work, and �he level of assistarice �,he HRA could prwide for �his p�roj ect. Mr. Lundgren s�a�ed he appreciated that. He was no� asking for tr�hen �o enter ir.�o a development agreanen�; he was askir�g then �o discuss and work out a develognen� agreanen�. Mr. Catmers s�ated he felt evezy i�en listed in Mr. Lundgren's let�er had be�n discussed and gone over in de�ail before wi�h Mr. Lur�dgren. Mr. Rober� Silver�nan s�a�ed he has been working with Mr. Lundgren since N6ay 1988. He s�a�ed he did r�t have all �he his�ozy of �he proj ec�, bu� he has been follawir� �rt of it. Mr. Lundgren's Aug. 4�-h. let�er v�as responsive �o th.e con�inued requests fran s�aff asking for his proposal. And, Mr. Lur�dgren was saying what his proposal was based on Center.mial's canmitment. There have been plans, ar�d Mr. Casserly has made runs on �he rnunbers. He s�ated �he only r.aanbers he had seen which Mr. C�sserly had concluded in May were no� feasible, were based. upon �he assunption �hat the Cii.y was goir�g �o put in an $850, 000 parking garage. Tha� garage was not part of Mr. Lundgren's proposal ariymore. So, �o 'the ex�ent �ha� Mr. Casserly's ntunbers shvw �ha� �he proj ec� is ir�easible based. upon $850, 000 �kia� is m� goir.ig to be spent, he would suggest �laat Mr. C�sserly go back and rerun the rnm►bers based upon Mr. Lur.�d.gTen's preser� proposal. ,..� _ - Mr. Silveanan sta�ed �ha� bo�h he and Mr. Luridgren had m� seen Mr. Ne�nan's le�ter until 5 minutes before �he me�ting. Mr. Newman's let�er made reference to an. �rlier proposal fnzn Mr. Lur�.gren asking �he City arnl �he HRA if �hey would facilitate �h.e firar.icing 3�i helping Mr. Lungren wri�te down �.h.e rate, there]oy increasing the amount. That was still a part of Mr. Lundgren's wish, bu� �hey would uriders�and �ha� if �h.e City could n�ot do that, if the HRA is ur�aillirig to partici��e, thEy would have �o f ind scgn.e o�her source tr;o do �hat. The� were workir� on doirx� �ia�. Mr. Silvernian s�a�ed �h� agree th�it i� has been a long �ime, but �h� have been workirx,� on �he pxoj ect. They firlally go� �,he mor�gage ca�uc�i�nen� in la�e July. As soon as �,hey get one se� of �r�aeters, �hey have �o fir�d out wha� �he o�her �r�ame�ers might be. Based upon what �lze mort�ge cai¢nii�nen� said �o �hen, Mr. Lundgren had written to �he HRA ar�d asked �hen to consider those 9 pc�ir�s. Mr. Silveanan st:aa�ed it was �rrec� �-ha� the Ci�y and the HRA have the lega.l righ� t�o acquire title �o �-he property essen�ially after 90 days after filing �he pe�ition and quick-take. Bu�, 90 days fxrm August 1.1�,h was not October 1, arx3 i� was �st the da�e when Cen�ermial has reques�ed �ha� Nlr. Lurad.gren have lar.id con�rol and close. Mr. Silvernnan st:a�ed �hat a� �he mee�a.ngs he has at�ended, there has been a reluctar�e on �he part of city s�aff �o cac¢ni� �o go aut and get the larid. ^ Unders�aar.r7ably, �hey wan� �o ]cr.�v a li��.le more abou� �he proj ect, bu� �he Ci�.y has mt ever�. star�ed �the corx3enra�i.on procedure. They have asked. the -5- HOUSIlQG & RID�TEGDPT� AU�30RITY MEETIlVG, AUG[7ST 11, 1988 � Ci�y �o begin rngo�a.ations wi�h �he land avr�r to f irrl out what �he price is going �o be, but as far as �hey kr.�w, �he City or tl�.e HRA has m� done tha�. �, yes, �hey can pu� the proj ec� �oge�her in 90 days easily, bu� they need �h.e willir�r�ess �o do it, and i� was difficul� for �he developer �o c�unit himself �o close �he mortgage in 60 days if �h.e land is not going �o be con�rolled for 90-100 days. Obviously, witr-hou� �he land, m mor�gage can be closed. Nir. Silvennan s�ated that regarding �he road locations, i� was his ur.�erstamling �-hat staff has had det;ailed full working drawings for sane time, ar�d saneone can estimate wha� �Yie cost of all the public improvemen�s might be. Again, that was �r� of �he proposal, bu� they have r.�� heazzd the Ci�.y or �he H1?A say, yes, tYi.ey wi.11 do tha�. Mr. Silvezman sta�ed. the �aax �ymen� for $900/unit was wha� �he mortgage was processed on, ar�d if �,he �axes are going tr:o 1� more, �-l�.ey should know �,ha�. They have done sane s�udies and presented th.em �o staff saying $900 per uni� per year represen�s �h.e marke�. 'I'ha� is goir.� to genera.�e °x" dollars worr�hh of tax increnent, ar�d �hat is ei�her enough or r�� enough for th.e City �o partici�te by writir�g down th.e land and doing th.e public impravanents. Thc� have mt received an answer tr:o tx�at poir�. Mr. Silvernnan stated regazdi.ng the let�er of credit, wl�� was �he purpose of th.e let�er of credi� arrl whe�her or rnt it has �en sezved. by t:he thousarids and �housar�ds of dollars �-hat Mr. Lundgren has spen� on �he proj ect and his � cat¢ni�xnen� �o �-he proj ec�. Mr. Lur�dgren has worked on �he proj ec� for in excess of �vo ymrs, ar�d he coi�irnies �o show good fai�h �o con�iir�ue workir.� on �he pmjec�. If �he le��er was �here as a good fai�.h deposit �o prove that Mr. Lur.id.gren was goir� t:o �a.y to arnple�e �-he proj ect, he has me� tha� �es�. - Mr. Silvelman sta�ed wi�h respec� to proceedirx� wi�h develagnent con�racts, �hey agreed. to do that. Mr. Silvernnan s�tated tha� regarding the second mor�gage, �he presen� develognen� con�rac� says Nir. Lundgren wi11 give the HRA a second mortgage. They canrao� do t��at under �hhi.s firrarlcing proposal. If the Ci�y insis�s upon a second mor�gage and is not going �o get enough money f rom the �ax ir�crenen� �his pxvject genera�es, �lic� canr�� do �he Cen�ennial firrancing Proposal. Mr. Silvenc�an st:a�ed it was discussed earlier that tY�.is proj ect arld o�her pr�jec�s have mt yet created sufficien� taxes �o pay �he school dis�ricts and to help the borxis. Tha� was �rue, bu� �he real question was: Vr1as any oth.er develaper goir.�-to do it any quicker? Mr. Lundgren has pu� in two y�rs woxth of ef'for�. He l�s full workir� draw�.ngs, full plans arrl specs, a con�xac�or on boaxd, and a mor��ge can¢nitrnent, even �hough i� is no� �lie bes� mor��ge ca�rQn.i�men� in �he world. He is still saying he wants �o do �he proj ec�. They can proceed �o work coopera�ively with �he HRA ar.�d Ci�y Staff, but sf �he HRA says, sorr.iyy, �-he pnrject is over, he did no� �hink the ^ Cib�i was going �o ge� a bet�er develo�anent, or any develo�anen� at all, quicker �han �hey would in cont:irniirx3 t:o work wi�th Mr. Luridgren. � HOUSIlQG & 12��TE[DPL�'�L�FI' ALP�iORl'rY N�PIlQG, AUGUST 11, 1988 � Mr. Grnc¢ners stated �ha� if Mr. Lur�dgren is allowed. �o go fozward wi�h �he proj ec�, he has to obtain san� kirrl of addi�ioral firar�irr� in th.e amount of $2, 300, 000. WY�� type of protec�ion would �he Ci�y have if �hey au�horiz ed Mr. Lundgren addi�iona.l time �o do �hhat, and in �he mean�ime, the Ci�y started �:o take �he proper�t.y? Mr. Silvennan sta�ed tha� was a hard �iming question �;o answer. Obviously, �he City would prefer m�t �o aaqui.re the lar�cl un�i.l �1he proj e�t is to�ally put �ogether. On �he other har�d, t-he longer �ime �he HRA takes before �hey aaquire the iarx3, �he less apportunity Mr. Lundgren has to get firaricing arrl �:o arrange �he equi�.y. It seened �o him �he Ci�.y has the oppor�uni.�.y, and it was not inconsister�.� with other caYmnuni�ies �hat have policies �o take a "blighted area" arad s�i.r up develognen� by aoquiring th.e larad in advance of a develognent pr�posal. He did no� ]rnow if �hha� was �h.e Ci�ty of Fridley's policy, bu� i� was ce�ainly a way �o proceed. I� would �ake a lot of ur�certair.�.y ou� of the pr�ject fnzn Mr. Lundgren's standpoir�. Mr. C.a�runers asked if Mr. Lur�dgren believed that wi�hin 30 days he could came up wi�-h. sanething �o caver �h.e addi�ioral equity �Yiat is required. Mr. Silvernnan stated Mr. Lundgren was certainly workir.�g on i�. Mr. Meyer asked why aaquiri.r� �,he lar�d was such a cri.�ica.l poir� in �emis of Centennial having an agreament con�ingen� upon �he land being available. Does Cen�ennial always have �o have a deed in har.�l before �Y�.�y sign a ca�itrnent? Couldn' ��hey just say, "upon aaquiring �he larrl, Mr. Lundgren shall ge� �he mor�gage �i�men�°. . . ? Mr. Silvennan sta�ed Cen�ennial requires �his to happen by Oc�. 5. Centenni_al has catanitted a fixed in�erest ra�e at 8 1/4°a, but they won' � ca�ni� it �s� Oct. 5. Mr. M�er s�a�ed CentenniJal l�ws i� is going to �ake �.he HRA 90 days �o aoc�uire �he lar.�cl, ye� �he� are sayir.� �hc-y r�eed �he canmi�anent in 60 days. What kir�d of catmitrnen� is that? He s�;ated he �hh.ought Cen�enni..al was using this as a play to ge� ou� of a commi�ment. He stated he was very disappoir�ed in tr�he way Cen�enni.al has been s�rirlgir�g Mr. Lundgren and the City and �he HRA along. He s�ated he suppor�ed eveYy�hir.�g Mr. Silve�nan l�s s�a�ed abou� Mr. Lundgren and his good fai�h and credi�, bu� he was disappointed in �e whole process of �h.irigs arx3 �ha� �his was a riever er�dir.ig g�ne. Mr. Canmers stated �ha� in all practicali�y, �,he HRA probably canno� get lar.� con�rol by Oct. 5. He sta�ed �-hat or�ce before �hey were veiy close �o owning �he proper�y, -but �hey backed away frcan i� when �h� found �he proj ect was rn� going to go. The HRA was m� ir.�erested in aaning property and beirig laradlorrls. Mr. Casserly s�a�ed trhe pznblan was more serious �han was being said. This is not a market rate mor�gage. This is no� a problem where �,h�y have �.., ca�ni��ed futxl.s for a given period of �time in which �h.ey have gone ou� to purchase assets. This is for an 8 1/4�S mor�gage. I� doesn' � make any -7- HOUSIl�G & 12ID�TII�OPT�Fr AU'�30R1TY MEETIlVG, AUGi7ST 11, 1988 � differer.�ce if �,his ccmmitr�nen� ran �o Dec. 1, Jan. 1, or Feb 1, because the catmi�n.en� was n�� very mmningful. Mr. Silvernian sta.�ed he was m� defer�dir� Cen�ennial, and he saw the same prvblens �he HRA ar�d s�aff were raisir.�. He did su]�ni� i� was a s�aar�ing poir.� to see if �-hc� can make �he proj e�� work. Ms. Schr�l asked Mr. Lundgren �,ha� if he was unsuccessful in obtaini.ng additioral firar.�ir.� in �he amount of $2,300, 000 by Oct. 5, did he have a con�ingen� plan a� tha� �ime? Mr. Lur�dgren sta�ed, yes, he was workir� on al�erra�e sources of funding bu� he was not prep3red �o discuss �hose a� �his �ime. Ms. Schnabel sta�ed i� would seem �o her �ha� if Mr. Lurrlgren canno� ob�ain �h� addi�iorsl $2,300,000 by Oct. 5, Cen�enni.al's d�adlir�e, �ha� Cen�ennial will pull its canuni�nen�, and Mr: Lundgren will be ]�ck a� square on+e. Mr. Lur.idgren sta�ed his �ao al�ernate sources of furxiing would not rely on �,he Cen�ennial mor�gage. Mr. Fasnussen s�a�ed he fe1� �his has just gor.te on for �oo lor.� a time, and he �hought �hc� should �ermirste the r.�ego�i.a�ions mw. As dras�ic arrZ harsh as i� sour�c7s, he �hough� it was �ime �o call it qui.�s. ��--� Mr. C`asserly sta�ed �rt of �h.e problan wi�-h �he ar�alysis in �eenns of �xxyir� tr:�o -de�ennir�e what is available is tha� �his is a�nstr:antly moving �aarge�. Origirally, when �hey were talkirx� abou� taxes beir�g 51,350-1,100 per uni.t; they were then �alking abou� a parking s�ruc�ure being in, sometimes u�ilities are in, sametimes u�ili�ies are out, and public improvenen�s. When the sugges�a.on was made �a� �he market rate would only sus�ain $900 per uni� in taxes, a� �-ha.t �ime �he dete�nina�ion was made �ha� �he develagnen� be responsible for th.e �rkir� s�ructure, arad the taxes would be reduced dawn to the $900 level �o �.iy �o make this project work on a market ra�e l�asis. These are c:ons�an�t].y mwing kir�ds of thir.�s. I� vTas importan� to poir.� out �ri.a� �hc� do mt do a r.iav run �very time they have a varia�ion when sane�hir.x� is suggested. Mr. C�sserly st:a�ed, more impor�an�ly, �,hey have been looking a� o�her op�ions and. �.he developer has been looking at other op�ions, and he has brough� a rnanber af people in�o �he process. Th� had ra�kher an extensive mee�a.r�g on July 20, 1988, when �Yi.ey were �old that �he project was going to be shor� of ftiu�ds and Mr. Lundgren was going �o need same kir�d of subsidi.zed in�erest ra�e. The praspec� was raised a� �ha� mee�ing �hat a very in�eres�ing and very innavative fimncing schene be suggea�ed. It was outl.ir.�d in P�1r. Neyanan's le��er, ar�d i� was ir�dica�ed �hat the Ci.�y could m� be nega�ive or posi�ive in �ernns of �ha� package b�cause it was pu��ing �,he HRA in the posi�ion of issuing essentially a$9 1/2-10 million borid issue and having that be g�rar�eed.. It was an interes�ing concept, bu� staff could r�t see �he HRA want.ir.� -�o get in�o �-ha� �art of �he fimncing. �`i Mr. Casserly sta�ed staff sugges�ed, however, that �h.is method. of firrancing -8- HOUSIlQG &�EVECOPN�P AU'.�iORITY MEETIl�, AiK�TST 11, 1988 � has been done, and if �he developer could provide staf f with more ir�omia�ion on haw �his would work, staff would be happy �o review i� ar.�1 presen� it to �he HRA, ber.ause it was �hought a� �hat �ime trhat �he mor�gage anani�nen� was rx�� going �o be adequate. However, tha� infozmation was r�ever received. Maybe staff was a li�tle bi� too nega�i.ve and maybe i� was detennir.ied ]�r �,he d�velaper that i� was no� worth pursuirag. Mr. Casserly s�a�ed several meetir.gs were h�ld las� week and �he prnblan was �hi.s s�mple: The pivj ec� was $2, 000, 000 shor�, and �he ir.�eres� rate was 2 1/4pa utxler market. He just did m� ]tnow how anyone was goirig t:o be able �:o make up those deficiencies. I� migh� be possible wi�h some kind of ir�eres�ing partici�tion process which was discussed in March, April, and May. Bu�, i� was r.�v August�, and �hEy are s�ill l�king a� po�ential �r�ici��ion and �xying �o figure aut who is going �o firance �he project. Mr. Silveanan s�ated he wauld �r�ur wi�h Mr. C�sserly �t�a� �his is a moving �arge� ar�d was goir.� �o con�irnie to be a mavir.� t;aarge�. If rx��hhirx� else, a� least Cen�ennial Mor�gage Y�as st:aabilized one of the mwing th.ings, and now i� was �he responsibli�y of �,he developer �o go foiward and see what he can do. Mr. Silvernnan s�a�ed that wi�h. regazd �o the inr�ava�i.ve proposal, i� was a pz�posal �-1�.ey would er�ourage if tr�he Ciiy and the H RA f el � go�l about i�. He would c�te fran Mr. Newman's let�er �o Mr. Rober�son dated. July 21: '�oth. Jim (Casserly) ar�d I expressed in vezy clear �enns our disappoinbznen� � in this proposal arid our belief �hat in �,he curren� poli�ical cl�ma�e and wi�h our curren� deadlir�es that we are ex�renely doub�ful �hat ei�her the Ci�y Council or t:he HRA would approve �h.is proposal. " That was a pre��y r.�a�ive sig�l fran �he Ci�.y. If it was a prop�osal tr�ha� was viable and the staff ar.s3 HRA wanted �o pursu� i�, it would solve a lo� of problens. Mr. C.nY¢ners asked wha� �he str;atus was on Mr. Luridgren's le�ter of credi�. Mr. N�mian s�;a�ed the let�er of credi� matured. on Nlonday, Augus� 15. Mr. Kevin Jensen, Presider� of �he S�a.�e Bank of Springfield, s�aated �he Bank would be willing �o ex�end �-he let�er of credit �o give Mr. Lundgren sane acldi�ioral time �o keep workir� on the proj ect. Th� have worked vezy closely wi�,h Mr. Lundgren, and it was �he Bank's belief �-ha� there was poten�ial for �,his proj ec� and that Mr. Lundgren can put �he proj ect �toge�her shor�ly . If he did not f eel tha � way , he woul d not be a��he meetirx�. Mr. Jensen sta�ed that regazdir.x� �,he July 20th mee�ing, he ha.d obt:ained a real es�a�e a�torney to si� in on �ha� meeting. I� was th.e a�torney' s reconanenda�ion af�er the discussion regarding -�he city participa�ion proposal �ha� tr�hey should no� pursue ci�.y par�icipa�ion because of the nega�ive reac�ion received fran city str:a.ff. M3TIDN b,y Mr. Rasmussen, seconded by Ms. Schr.�bel. �o �ernnirate r.�go�ia�ons ^ wi�h Nir. Lun�.gren for �he develognen� of th.e R.ice Creek Shopping Center proper�y and �o draw on the le��er of credi� wi�h the S�a�e Bank of � ('� �1 HOUSIlVG & RIDEVII.OPN�1T'r AL]'IHORtTY MEETIlJG, ,AZK�US'� 11, 1988 Spri.ngfield. Ms. Sc�u�abel s�ated she had secor�ded this mo�:ion wi�h mixed. f eel ings . She certainly felt Mr. Lundgren has been an extr�nely fai�hful person �o �his proj ect, ar.� she �did not f eel he has shirked any resporssibil i�y to �he projectr in fac�, he has been ex�renely acti.ve in txying �o seek scane kir�l of fir.ar.�ing. Bu�, �his has ap,peared to became a���ern mon�h af �er mon�h where he just never seens to be c�ui�e able to pu� �.he package togetr�her, and she felt �,hey were at a poin� now where �hat was j ust no� going to ma�eri.alize. The $2,000,000+ seened like a large hurdle �o avercame in light of Y� Mr. LurrlgY'C�II has worked �o ge� where he is �oaay. She did not have any co�id�r.tce �Yiat �his was g�oirag to be a successful project in tenns of fir�ancir�g. I� was with. �h.ese feelings �ha� she had reluc�an�7.y seconded �he moti.on. - UL�N A VOICE VOTE, ALL VOT]NG AYE, Q-i�iIRPER90N �NJNIERS DE('LAFtID 7�IE NtJTION C.F�RR� UNANIlvDUSLY. Mr. Ca�¢ners sta�ed �here have been a lo� of feelings involved wi�hh this p�j ect. All �h.e menbers of �.he HRA were impressed wi�h wha� Mr. Lundgren has �-xied t:o do, and his sinceri�y abou� it; bu�, uur�ortunately, - i� had to came to a h�d one way or the o�her a� same point in time. Regarding �he le�ter af credi�, he would suggest �ha� Mr. Lunrlgren and hi.s representa�ives con�:act ci�.y staff and s�aff legal counsel �o see if there was sane praposal Mr. Lurr].gren would li.ke to make. Mr. Lundgren �hanked �he HRA menbers for �heir ccenplimen�s. He s�a�ed he ha� spen.� in excess of $1/2 million on tY�.is proj ec�, and he was rio� a rn �; tter. Mr. Silve�nan sta�ed �h.e mo�i.on, as he understood it, did �vo �hings: �o �e�nira�e negotia�ions wi�h Mr. Luridgren, ar�cl t:o cash Mr. Lundgren' s letter of credi�. Hc�wever, Mr. Ca�sne�s' ca�anent migh� be ir�erpre�ed t:o mean �hha� �he second. issue was no� quite as hard and fas� as �he first issue. Mr. Caiuners s�a�ed �he sense of t1�.e mo�i.on was �ha� �he HRA does intend �o cash the let�er of credit, bu� �he HRA would be willing �o discuss any pxoposals Mr. Lurxigren ar�d. his a�torney migh� wish to make wi�h respec� to �Y�.e amount of �,hose funds. Mr. Silve�nan s�a�ed be -cashed on N.�nday, of pxoposal. �hat accozdi.r� to Mr. Nananan, �he le��er of cr�li� must and �-hat did r�� leave much time �o work ou� any kind Mr. CaYaners s�a�ed. he wauld assune they would cash the let�er of credi� ar.�d cab�ain posseSSion of �khose funds, subj ect �o any proposal Mr. Lundgren mi�,t war� to make in �eans of maki.rx3 any adj us�nents. - Mr. Silvennan stated �here was mw a�hird par�.y �hha� had �o be iraser�ed in�o �ha� discussion, and �t�a� was �he State Bank of Springf ield. If th,e ,..� le��er is drawn, the Bank is ou� $200, 000, and i� needs to proceed back a�ir�st Mr. Lurrlgren. If i� was �h.e sense that �he HRA did no� need to -10- HOUSIlQG & RIDEVF�OPN�IVI' AU�iORITY MEETIl1iG, AUGITST 11, 1988 ,�� have cash in hand immedia�ely, leas� �wo weeks, i� would discussions. � and if �he credi� can be ex�ended for a� give �hem an oppor�unity �o have those Ms. Schrsbel s�a�ed. if a discussion were �o �alce place be�.ween Nlr. Lundgren and/or Mr. Silveanan and citr.y staff ar�d the HRA a�torney, and there was sane proposal for sane �ar�ial amount of �he money �o be returned, �hey would have to cane k�ck �o �he HRA for a decision. She did no� �,hink �he HRA wan�ed �o extend �hha� �ime period. for ar�o�h.er-30 days. The bet�er solu�ion would be to cash �he let�er of credit, ar.id then have �ha� discussion in 30 days. Mr. Me�er s�:a�ed �Yia� if �hey do cash �he let�er of credit on Monday, �he S�ate Bank of Springfield mus� �hen proceed against Mr. Lurldgren in sane fashion which migh� cause a$200, 000 harrlship �o Mr. Lunc�gren. If �here is an al�erra�e agreenen� later �o ratify l�s tx�an the $200, 000, i� seens �1zey might be 9mposirx� an additioral bu.�rlen on Mr. Lundgren �ha� he, Mr. Meyer, was no� contenpla�irig when he vo�ed on �.he moti.on. He was ra�t eager �o add sal� tr:o �he waurld. Mr. Rasmussen s�a�ed he fe1� �hhis was a ma��er for staf f and 1 egal counsel to work au�. This was m� a�ime to do arly nego�iating or amending of a motion they-had already �ssed urranimously. If �here is a proposal �o do scgne�hing different la�er, �hen �ha�. was the �.ime �o make that second deciaion. Mr. J�nsen s�ated �ha� drawing on the let�er of credi� migh� start scane wh�els in mot:i.on tha� migh� be Y1ard �o s�op �hat might prohibit any future discussions or r�go�iations. Tha� action to ge� �,he repaymen� migh� be a hardship on Mr. Lundgren, �r1 �here might � o�her ramifica�i.ons. NDTIDN by Mr. Meyer �o �t�.7.e �he letter of credit with Mr. Lundgren arrl �,he S3:a�e Bank of Sprir�field in �he amount of $50, 000. - NDTIDN FAII.�ID F�R LACK OF A SECD11�1ID. Mr. Newman sugges�ed �ha� Mr. Jensen, Mr. Lundgren, and Mr. Silverman ad� ourr�. �o �h.e hallway to discuss a proposal -�:o presen� �o the I�iRA. Mr. C.a�mers sta.ted i� was �he sense of the HRA that �h�y would be open �o sane discussions and sane pzoposals. Chairperson Coauners declared a recess at 8:30 p.m. Chairperson Can¢t►ers recorivened �he meeting a� 8:45 p.m. 3. CDI�LSIDERA'lUN OF REDEVIIIJPMELVI' P1d�P�SAL FOR 57'II3 PLACE: Mr. Rc�bex�son sta�ed �hat in June 1988, �h.e HRA received a proposal ar.�d. presen�a�ion frcan Winfield Develognen�, and in July, �hey received a � proposal fram JLP. Mr. Casserly had prepared an analysis in July which shawed �ha� with the ir�onnati.on �,hey had at the �ime, i� was going to be a -11- HOUSIlVG & RID�VECOPN�TT AU'giORZTY MEEPIl�G, AiK�7ST 11, 1988 � defici� pzoj ec�. They did r.�� see ariy way a� tha� time �ha� th.e proj ect would pay lx�ck in �axes what would be required for inves�men� up fron�. Th.e HRA direc�ed staff and Mr. Casserly to work ou� scane addi�ional analyses given upda�ed infornna�ion-fmn bo�h developers and �o ccane back with sane firal coriclusion on whetr�her this was going t:o be a defici� proj ec� arid. h�v much of a defici� proj ec� it might be. Mr. Rob�rtson stated abou� a week arrl one-half ago, Mr. Casserly con�ac�ed him and said his aralysis ir.dicated �,here mi�t be a d�.fferent niunber �ha� migh� be involved in an acrquisiti.on of a kc� parcel. A� tha� �ime, s�aff �ook �-he ini�i.a�i.ve to hire a consultan� �o get an est�mate on what �he cor�denration pnxedure might 3� on �1�a� key ��el. Mr. Robertson s�a.�ed he and Mr. Casserly me� yestezday morning with one of �h.e develapers �o ge� scgne clarif ica�ion on �he proj ect. Mr. Casserly finished �he arralysis las� night ar�d was ready �o give his-repor� a� �h.is meeting. Mr. (�sserly handed ou� copies of his August 11�h, le��er. He s�a�ed that be�a.use of �he questions raised a� �he last mee�ir� abou� - th.e rnm�bers used for acquisition and reloca�ion and because �he HRA was a lit�le uncanFortable wi�h �hose rnxnbers, �he Ci�y's consul�ant was asked �o do a vezy quick aralysis. The fi.xttures ar.rl reloca�iom m�nbers were averages. He sta�ed the or� prop�rl.y tha� was significant].y different was �h.e Rapid Oil property. Before, �h� were using aoquisi�ion and reloca�i.on costs of $705 /"'� and $725-and now �hey have �Y�a� down to $581. On �he �,hird spread sheet - at�ached �o his let�er a� �h.e bottan of the page was �h.e rnmiber $776,500 ($622,500 for aaquisiti.on, reloca�a.on costs, arsd various o�her costs plus $154, 000 for ir�rastruc�ure, reloca�i.on involving wa�er, sanitazy sewer, arxl stree�) . That was �he rn.unber he used �o determine how much �his proj ect could sustain. He stated they would be getir� $350, 000 for paymen� of �h.e lar�d. In order for the pr.nj ec� to er�d up wit:h 5776, 500, addi�ioral revenue r�eci.ed during �he life of that dis�.ric� was $412, 000. Mr. C`asserly stated �ha� if his suns were accuYa�e and �hey ge� 5350, 000 for �he land, �,he HRA was going to have �o pu� in $412, 000, ei�her �hrough special assessnen�s or sane�-hing. Mr. C�sserly st;a�ed �-h,e second spread shee� was �hhe sau►e excep� in t;his scenario, �here was a$400, 000 payment for th.e land, and if the developer pays 5400, 000, additioml r�venu.e needed was $294, 000. The final spread shee� shawed wha� happens if �here is a$450,000 developer pa.yment for �he larrl, �hen �,here would be abou� $176,000 in �he dis�ric� over i�s life. Mr. C�sserly s�a�ed he was sugges�ir.� �,his pxoj ect can z ero ou� and can be desigr.�d so �here would be m additiorsl reveriue required by tlze HRA. 'I'here were a wlwle varie�.y of �hhings t1�at could happen: (1) they could exterrl the distsic� by a year; (2) �,hey could get a 1i��1e larger developer paymen� or have a snall amaunt of i� for speci.a7. assesstnen�s; (3) th.ey cauld look a� a little different ir�flati.on fac�or. He had used a fairly moderate orie a� 3�. � Mr. Casserly sta�ed �here was also �he possibili�y �xia� �,he infrastructure -12- HOUSIlQG & RIDEVE�DP�I' AU'�iORrI'Y MEETIl�, AUG[JST 11, 1988 � expen.ses might be less than $154, 000. Public Works gave him a range of $75,000-5154,000 �o work wi�.h. Mr. Casserly sta�ed he did not think before that �he develo�xnen� could su��aain itself because of �he higher rnunbers he was usi ng. So, his recar¢nemlation was �hhat the HRA proceed wi:�h the proj ect only if -�,he proj ec� can be made to balar�ce which would re�uire r� ou�side HRA mor�--�hat i� be a self suppor�irig develognen�. Mr. Robexison s�a�ed �riat staff was convinced �ha� ei�,her develaper pro�ably has �he whea�rai�-l�all ar�d exp�rience �o pu� �oge�Y�.er a°doable" proposal. As suggest�l by Mr. C�asserly, �he desizable course would be for �h.e HRA to-pick a developer to proceed wi�h. txyir.� to pu� toge�h.er a viable proposal �hat wauld essen�ially pay for i�self wi�h more specific c�uni�nen�s, give the develaper a deadlir.�, and if �he develaper canm� meet �hat deadline, then �hey would go wi�h ar.ro�her developer. Mr. Robertson s�a�ed that since both developers were represen�ed a� the me��ing, �he HRA might want �o call on then for further clarifica�ions on �heir �hi.rakirrig abou� �he pzoposal as reviewed by Mr. Casserly. Mr. Bill Fogerty, Wir�ield Develo�an.ent, stated they are willing �o spend monc-� on this proj ec�. He st:a�ed �hey have been vezy busy with ano�her proj ect, but he fel� �h�y had proceeded �o do everything �he Ci�y had required �hen to do. He sta.�ed tr�hey do l�ave a laank for th.eir major �enan�, ^ bu� i� was dif f icul ��o ge� �he f iral caiuni�men� f mn. �-h.e bank a� thi s�ime for sane�hirx� they do r�� have yet. He stated �hey are dealirx3 with. be�ween $11-13 per �re foo�, deper.d,i.r�g upon hav much mezzanine area will be on �he secorx3 floor. Mr. Fogerrtyy sta�ed �hey have a vexy hi�. quali�y, attrac�ive, develoisnen� for �his site, and he did think �,hey would be able to put �he proj ec� together wi�hin t:hree mon�hs. Wi�hh.in 45 days �h.ey would be willing to pzopose a$50, 000 let�eer of cret�i� or wha�er the HRA deaned r�ecessazy. Mr. Joe Cattners, JLP, sta�ed �h.ey were vexy enthused abou� entering in�o a deiini�i.ve agreanen� for �h.e develognen� of the 57�h Place site. They have been vezy aggressive in workir.�g for �Y�.e City and the HRA. They did all �ha� was �+�; red 3� ci�y staff. They aggressively pursued aaquisition arrl ended up wi�h 67% of the total gackage, leavir.� a couple of lo�s arrl a duplex �hat is on �he n�rke�. Mr. Joe Cataners sta�ed tha� at the last HRA meeting, he had talked abou� th.e fa�� �hat if �he HRA v+ras able to pay cash for public �mprovanents, based on $150, 000, it would make abou� a$300, 000-400, 000 d.ifference. If �-he public impro�vemen�s were closer �o $100, 000, �he difference would be even more substan�ial. Mr. Joe C.ar,uners sta�ed �hc� would reques� �,he char.�e t�o represent th,e Ciiy of -Fridlc-y and �he HRA. He s�a�ed �h.c� have an excellen� winning �eam �o ^ pu� a g�ood pmj ect �oge�.her. They are pre�red. to do �he proj ect quickly and trhey will star�d hy a construc�ion schedule of April 1, 1989, and be open -13- HOUSIlQG & 12IDEVEf�C)PMENT A[F]HORII'Y MEETIlQG, AiJG{TST 11, 1988 �, by Oc�ober 1989. Mr. Larzy Cam[ners asked Mr. Joe Ccxnmers �o ccaiament on the ntunbers Mr. Casserly had presen�ed where �he only way �his pmj ect vaas going �o work wa� by condenning Rapid Oil and aoquiri.ng it for less �han $300, 000. Mr. Joe ('.cnaners stated he would ask Mr. Bruce Peterson, his associate, �o speak to tha� issue. - Mr. Bruce Petexson s�ated �hc� recen�ly discussed �his sugges�ion of �he c�rx3�ration of Rapid Oil. Triey have done a lot of work wi�h l�pid Oil ar.id. are pre��.y aware of what I�pid Oil facilities cost arrl wha� �hey are wor�h, bo�h existing and new. They have done �hese kinds of autamotive develapmer�s before. I� was �-h.eir opinion tha� what Rapid Oil is used �o seeing is all �ie way fzcm. $8-10 per s�re foot on these snall parcels of pr�perty. JLP really ques�ions �-he prac�icali�y of believing tha� withou� just a real laat�.le tha� �hese cos�s can be achieved and tha� Rapid Oil can be aoquired. I� was or.� �hir�g �o be buying vacan� lar�d, bu� i� was arso�her �hir.� to be-aaquiring a busir.iess tha� is successful and making a prof i�. He s�:ated they jus� fee7. �i,e Cit.y is looking a� a much grea�er niunber �n �hese figures show. Mr. Joe Ca[¢ners sta�ed �h.ey have worked wi�h Ra.pid Oil since day one in a coopera�ive manner m� to exclude �.hem, bu� �o ir�clude �h.an. They feel i� is a moral c�bli�tion �o acca�unoc7ate Rapid Oil. Thc� look at R�apid Oil as a � favorable busiriess �ransac�i.on, ar.�d �hey have worked hazd wi�h ci�y staff to ir�corporate Rapid Oil in�o �he develognent in a vezy c�nplimen�azy manner. If i� requires a li�tle bit of ccanprcanise on where Rapid Oil would b� located, �h� are willirx,� �o be flex,ible, bu� i� was a fact �ha� �hey were in �heir presen� posi�i.on because Fapid Oil allawed then �o en�er into an agreanen� wi�h an aption �o pur�chase. Fapid Oil was a private en�erprise, and �hey Y�ave certain ri.gh�s. He s��ed �heir loyal�ies would be severely ques�ioned if t1�.ey were �o tell Rapid Oil �hey were no longer in �he proj ec�. Mr. Rc�ber�son stated �hat in the �st, both �t�.e Plannir.� C�¢nission arrl City Co�ncil have expressed �he wish �hat, given a prefererice, �hey would like �o see a r.�rrau�ano�i.ve oriented business develo�anen� on �his quadrant �ha� se�s �he tone for �he sou�hern gatcaay to �he Ci�y, and to have as much property value as possible in �t�.ere. Mr. Lany C'.cn¢ners s�a�ed �ha� since Mr. Joe Ccaaners was a rela�a.ve, what was hi� responsibili�y as chairperson o� the HRA as far as vo�ing on arry moti.ons? Mr. 1Vananan stated the S�ate Statu�e referred �o a member of �he HRA having sai�e kir�d of ecor.�anic ir.�erest in �the pr�j ect; ar�d since Mr. Canuners did no� have any econanic in�eres� in the proj ec�, he could vo�e on any mo�i.ons. Mr. Bruce Lurxlgren s�a�ed he would s�ress �hat regarding the �enant mix, F�a.pid Oil v�ras only 8% of �,heir pmj ec�. He did r.�� �hhink �hey were that far n� a�rt be�ween �,t�.e two concep�s. They recen�ly con�cted sane financial -14- HOUSIlQG & RIDEVF�ClJPMEN'P AiF.�IORITY 1�PIl�TG, A[R�US�' 11, 1988 _, � ir�sti�u�ions ar�d received sane favorable ca�unen�s. He s%:a�ed �he� are vezy fl�xible. If �he HRA wan�ed more �tail sezvic�type terants, �-h.ey would be happy �o discuss a terran� mix tha� �he HRA would desire. They were not locked ir�o anyorie o�h.er �han Rapid Oil, and l�.pid Oil was a veiy minor part of the pmj ec�. Ms. Schnabel s�a�ed �ha� having been involved wi�-h the Ci�y Planning Car¢nission for a good rnunb�r of years before becaming a menber of the HRA, ar�cl having been involved in a lo� of discussions on planning for �-he future of the City of Fridley, as well as working on �-he Metro�li�an Council direc�ed Canprehensive Plan, i� was her personal preference �hat �he develo�nen� for �;he proper�y fell more in line with. tha� proposed by Winfield Develognent. 'I'ha� was mt to say �1�a� �he JLP proposal was not a good one, bu� she did no� feel �hha� was �he best selection for tha� �r�icular site. As �hey look a� �he en�sar�ce �o �he Citr,y off �he freeway and as it has been �he Ci�y' s desire for many years �o try ar�d. upgrade evezy�hi.ng along Uni.versi�.y Averiue ar�d give visibil ity �o �hhe en�rance �o �,he City, �hen th.e Winfield Develo�anen� proposal bes� fulfilled �hose desires. Mr. C,asserly suggested �here be a siun of money required f ran tY�.e developer to -be used for appraisals, soil borings, etc. He would sugges� a stmn of $5,000. - &�TION by Ms. Schnabel, seconded by Mr. lrasnussen, to gran� exclusive � develapmen� righ�s �o Winfield Develo�anen�, Inc., for 90 days (Nw. 10, 1988) for th.e 57�h Place Redevelo�nen�; ar.d, tha� ori or before Nlor.�ay, August 22, 1988, Wirlfield Develognen� �y �o �h.e HRA a sun of $5, 000 �o be used for appraisals, soil borings, arld enviivrmen�a7. evalua�i.ons. If the gayment is m� received by Augus� 22, 1988, �,hen Winf ield Dcveloganen� will have �he bur�den of doing �he necessaxy appraisals, soil borings, and ernrirormen�al evaluations sa�isfac�ozy �o Ciiy S�:aff. Mr. Wir�field s�:ated he had rx� pmblen with this, because �-h� will have �o do- soil borings anyway ar.�cl would be willir� �o share tha� infornnat,i.on �o �Y�.e City. Mr. Nananan stated he wan�ed Mr. Fogerk.y to unders�and �,tia� Wir�f ield did no� have exclusive ri�i� �o �he appraisals, soil borings, and envirormen�al evalua�ion irsEornia�i,on. Tha� ir.�onnation becanes public ir�fo��►ation. UPON A VOICE VOTE, SC�iNABEL, MEYER, RASMUSSEN VOTING AYE, COMMERS PBSTAINING, Q3AIl2PERgON mN�lERS DEC�AR� �iE NDTIDN C�RR�. Mr. Larzy Ca�uners s�ated that since he fel� i� was in �he HRA's best ir�erest for him �:o refrain fram vo�-a.ng, he warrted bo�h developers �o kno�nr tha� i� was also his preference �ha� Rapid Oil not be included in �he proj ect. All the x�anarks made by Ms. Schrx�bel were apropos. Mr. Lany Cat¢ners s�a�ed �he HRA certainly appreci.a�ed �t�.e work and expense n pu� ir�o these proposals l�i both developers. -15- � � �� 4. HOUSIlVG ,& R�EiTETAPT�NT AU'�i0R1�Y ME�PIlVG, AUGUST 11, 1988 WNSIDERATIDN OF RE.90LUTIDN AMEL�IlVG C1VIC C�LVTER TAX INCRE2�'!' DISTRICI' TO INCLUDE PL�AZA RAMP: Nir. Robertson st:a�ed th.e ques�ion abou� �-he HRA using �ax incremen� furids foY the construc�ion of �he Civic Cen�er parking ramp was put to Mr. Jim 0'Nl�ra. In Mr. 0'Meara's first reply da�ed July 25, he made an asstun��ion which p�oved to �be in error in �e1ms of the �ime �he bonds were sold. He correc�ed tha� in his August 5 le��er in which he sta�ed: "I� also appears r�ow �hat frhe concep� is �hhat �he HRA's cos� under this program would be fwxled a� least in par� fzrm excess pnxeeds of the 1985 tax. increneen� bor.�cl. " Mr. Rober�son s�a.�ed �hat af�er revi�ivir�g �his apini.on with Mr. Neyanan, �hey both. believe �ha� (1) yes, �Y�.e HRA has �-he basic legal au�hority �o cons�ruc� triis �arking ramp; (2) yes, �,he HRA can �y for �-hese expenses ou� of tax increnen�= and (3 ) yes, �,h.e expenses can be f inanced through �he issuar�e of a tax exenp� ir�crenen� bond. Mr. Robertson s�ated Mr. 0'Meara fur�her sta�ed in his August 5 le��er: ".:l�owever, �hose prior bor�ds have significantly more lenien� res�ric�ions i�i-the several areas I ment;iorred in my prior le�ter, arid we feel hopeful �ha� tha� can be clone wi�hou� any pmblens. " Mr. Rol�rtson s�a�ed �h� will probably need Mr. O'Meara's assis�ance �o guide �-hen in subsequen� ac�ions. - Mr. Robertson sta�ed Mr. 0'Meara had drafted a resolu�ion for the HRA's considera�ion (ager�cla-page 3-F) . In an�icipation of �he next i�em (Considera�on of Bids for Cons�ruc�ion of Plaza Ramp) , he would point ou� tha� �he r.nmiber urxier "1. Reci�als, (f) " should be changed fmm $785, 000 �o $840,000. - Mr. C.ac¢c►ers asked why Mr. O'Nl�ra had s�ta�ed in his le��er that if �he HRA wa� ge��ir� ren� fran �.t�.� office buildirig, tltiat raises ques�ions about �ax exemp� f irar.�cir.�. Mr. C�sserly st:a�ed i� had �o do wi�h t:he percen�age as it rela�es �o �h,e de�� sezvice of �,he mor�gage. If more �hhan 10� is used for priva�e busir�ss, �h.en it fails �he pri�ra�e purpose �est. He did not believe �,his was a problen in �his ins�ance. At �he time �-he bonds were issued., �he fonnula was 25�, arx3 �he amoun�-of ren� �h�y are paying was a vezy mnall sun, arid r.�� urider any ci�unstar.�es would �he amount the office building was Fe.yirsg suppor� any more than 25� of �he debt senrice on �ha� issue. Mr. Cba4ners s�:ated this also raised �he ques�ion (regarding Mr. Newman's August 2, 1988, letter, agenda page 5 i �hat if the HRA refuses �o subordirs�e �he s�or�d mor�gage or if �h.e HRP, refuses �o give �he office buildir� �he refurx3 being reques�.ed of $81, 000 under the Lease Guaran�ee F�irxl., would tha� have any bearir.� on �his proj ect? Mr. Nerranan s�a.ted �Yia� in all �heir discussions, i� was simply tha� since tr11ze Ci�.y would be leasir.ig 9,000 sq. f�. f�nn �h.e office building for a year, -16- HOUSIIQG & RIDEVII�O_PMEN'P AU�% N�rIlVG, AEK�TST 11, 1988 � �h.e office buildir.�g wi11 agree �o waive ariy conden�tion claims wi�h. �h.e cons�ruc�ion of �he r�np. Mr. Rober�son stated it was staff's recaructerida�ion �,ha� �he HRA adop� �he re�olu�ion ar.id mvve fozvua�l. NDTIDN by Ms. Schr�abel, s�onded by Mr. Meyer, �o adopt Resolu�ion No. 2�o include �he Fridley Plaza Parkir� l�np-wi�hin �he Tax Increnen� Dis�rict, wi�h �he amerxx�men� to 1. (f) �o reflec� $840, 000 worth of es��ed cos�s. UL�N A VOICE VOTE, ALL VOTIl�TG AYE, QiAIRPER�ON �NJNIERS DECLARID ZfiE NJ�TT�JI�T C�R� UIVADTIl�DUSZY. 5. Q�NSIDERATIDN OF BIDS FQR Q�1�STR[7CTIDN OF PLAZA RAMP: N.t�TIDN by Mr. Fhsnussen, seconded by Mr. N1�ier, �o accep� the bids f or �,he Fridl� Plaz� l�np B�lge�/Bids. Augus� 7988. Mr. N.f��er sta�ed he had looked wer �he plans arrl specifica�-a.ons ar�d, in his opinion, tr�h.ey were we11 done and veiy c:omplete. Th�y seened �o reflec� �he �ype of con�rol �he HRA has �a.lked abou� �a� �h.e archi�ec� make �he ul�ima�e decisions. Mr. l�snussen s�a�ted a ques�ion he had was regardir.� security in �he ramp. ^ Mr. David Kzoos stated the lighta.r.� level inside �h.e r�np would be the first co�cern for security, and tha� was adequately cavered. The o�h.er �hing �allted abou� a� a previous mee�i.r� was th.e consideratioa of sane pain�ing inside �he r�aic►p �o increase �h.e li�it level. This was an iten �,hey were mt able �o ge� in�o �he base bid package b�cause of the �iming, bu� was certainly sane�hhi� �hey could do in the fu�ure. In addi�ion, �,hey have �alked about placir.g securi�y c�neras ir.�side �he ramp wired �o �,he Pol ice Departrnent, so that was an op�ion. He s�ated they do have one camera located a� �,he 1Qblay poin� �o the lower level, bu� there are no cameras ac�ually placed in.side the ramp �,hat are wired to the Police De�rbmen�. N1s. SGhrabel suggested the possibili�.y of cameras being placed at any point wh�re peaple would access �he laver level of �,he r�anp. She, �oo, was very cor�er.r.�d. abou� securi�y in the xamp. She s�a�ed-as a woman, i� was a �errible thir.� to �rk and be afraid. �nrl, no mat�er where she parks, she is afraid. �� Mr. Jim Hill, Public Safeby Direc�or, s�a�ed �he HRA members have �o realize �t, obviously, any�khirig is possible, but �his is Fridlc�, r�ot Minr�eapolis, ar�d �hi.s is only a or� level raanp, not a multiple level �np. 'I'here will be high vis�bili�y throughou� the ramp. There is a main en�Yyway into �h.e buildir.� so �here will be cars comirx,� ar.d. goir.x� cons�an�.ly, so �h.e need f or securi�y was much less than it would be for a mul�iple level ramp. He stated �-hey wi11 certainly take all �he securi�y �hey can ge�; hawever; the big problen is �h.e mar.rpower �o wa�ch �1ze moni�ors. Was �,he Ci�.y or �h.e HRA ^ prepared �o hire addi�iorsl emplvyees to watch �-he monitr:ors? -17- HOUSIlSG & RIDEVEf�DPN�TI' AU�iOR�Y MEETIlVGs AUG[JST 11, 1988 � Mr. Meyer suggested an al�eerra�ive of shriek alarnns in lieu of camexas. Mr. CX�raners str;ated it seaned �o be �he sense of the HRA t.ha� �hey would like �o-make sure �,he securi�y is maximized as much as possible. Th�y were approving �he bids as presen�ed, bu� if it was going �o cost more �o increase securi�,y, �hey would like �o look at �hose figures. Mr. Hi11 stated �here was no ques�ion �ha� security would be increased. �o wha�ever level �he HRA wan�ed �o �y for i�. Mr. CaY¢ners asked Mr. Rover�son �o work wi�l�. Mr. Hill ar�d �he archi�ec�s �o work � sane �tions -for securi�.y, ar.id �o brirx,� kaack ap�ions and costs f or reviEw by �he HRA. U1�N A VOICE VOTE, ALL VOTING AYE, QiAIlZPER90N mN.N�JERS DE� ARID �IE Ni�TION C�RR� Ui�N]NDUSLY. N1s. Schrabel s�a�ed there was still �he issue of i.f �he r�unp opens only in�o Ci�y Hall, did it mee� the cri.�eria for �h.e use of public moni.es, or must there be access to �he adjacen� office buildir�? Mr. Robertson s�a.t.ed there is a sta.irway that is available �o �he office building, ar�d that does mee� the cri�eria. 6. FUI�IER mNSIDERA'II�N OF UJU LUI�IDGREN' S T•F'T�'R OF CRE'�IT: � - Mr. Nananan s�a�ed �Yia� based on a discussion witr�h Rober� Silvemnan, Mr. Lundgren's attorrrey, he would recamm�end that, cor.ditioned upon �h.e HRA staf� receiVing a certified check in �he amoun� of 525,000 on Monday, August 15, and fur�her c:ondi�i.oned upon Mr. Lundgren and �he HRA exchangi:ng full and canplete releases for any and all claims �hat ei�her garty might have agairbst mch o�her, �he HRA will agree r.�� �o take any fux�her ac�i.on on Mr. Lur�clgren's let�er of credit and �hat �he HRA will release �,he letter of credi�. N�TpJN by Mr. l�snussen, secorx3ed l�y Mr. Meyer, �,hat �he HRA agrees no� �o take any fur�her ac�ion on Mr. Lundgren's le�ter of credi� and �hat �he HRA will release Mr. Luixlgren's l���er of credi�, based upon �:h.e follawing �wo corad.i�i.or�s : 1. The HRA s�aff will receive on N�rx�ay, Auc�ust 15, a check in ��he �nount of $25, 000 fmn �he State Bank of Springfield= arr7. 2. Mr. Lur.idgren and �he HRA wi11 exchange full and canple�e rel�ses for any ar�d all claims �ha� either �rty mi�t have a�inst each other. Mr. Silveanan s�:a�ed �his was agreeable wi�-h. his clien�, Mr. Lur�dgren. UFDN A VOIC� VOTE. ALL VOTIl�TG AYE. QiAIRPERSON QJN.�RS DE�'J�AR� 'ItiE Ni�TION ('ARR� UN�TINDUSZY. ^ 7. Q�NSIDERATIDN OF S[BORDINATIl�TG 'I'fiE HRA' S SEQDl�ID N3�RTGAGE ON THE FRIDLEY � HOIISIl�G & R��VII�OPN�d1Ti' AU'IIiORITY MEETIlVG, AL�[7ST 11, 1988 � PLAZA OFFICE BUILD]1QG: �'�1 Mr. C.�¢ners s�ated the menbers had a copy of a le��er fr�n Dave Newman �o Jock Rabertson da�ed Augus� 2, 1988, s�ati.ng tha� the awners of the Fridley Plaza Office Building are asking �he HRA �o subordir�ate �heir second mortgage of $39,999 to the firs� mortgage which th.e buyer of �he building wi11 be �aki� ou�. Curren�].y, �here is a first mor�gage in �he original principal amount of $1,500,000 to which �he HRA's second mortgage is suboirolirated. Mr. C.o�raners s�ated �he Office BuildirxJ has also asked �he HRA �o au�horize �h� release of funds held in �he Lease Fund and Purchase Fund �o �he building avr�rs. There is approxima�ely $81, 000 in �he Lease Fund, and approximately $i6, 000 in �he Purchase F�r�d. Mr. C�►ers stated as he unders�ood it frwn Mr. Newman's le��er, �he Pu�chase F`und. was z�ally r.�� of any value or use ��,he HRA. The Lease Fund was a li��le differen�. In his le��er, Mr. Newnnan had s�a�ed �hhat �he purpose of �he La�se F`ux� is � provide to the Trus�ees a fonn of securi�y �o ensure tha� �he building owner makes �imely rental payments on �,he �rkir.� lo�. While �he Ir�den�ure of Trust was no� clear as �o whe�her or rar�t �he HRA-can requi.re the disburs�nent of furids fran �hh.is Fund for �he purpose of making delir�quent rent:al paymen�s, in �,he pas� when �,he HRA a��enp�ed �o use this fur�c7. for �t�.e paymen� of delinquen� parking lo� ren�, �he Trustee ref used to re1 ease �-he f tuids to �he H RA. Mr. Canuners stated he had � prablen witr�h. the subordination of �he second mor��ge, and �he Pu.m.l�ase Fiu�d was sametlzir� the HRA really clid no� have a righ� to anyway, but he d.id not know if he agreed wi�h. the release of the Lease Furx3. He did r.�� have er�ough ir.�o�xna�i.on �o make a good, j udgenen� on i�. Mr. Nc��an stated he has read portions of �,he bond doc�unent per�aining �o th�se fu.nds, arld it doesn' � specif ically s�:aate tlzat �he landlord has the righ� to �hose furids. Mr. Nesnanan s�a�ed staff was lookirx,� a� �hhi.s from t:he perspective tha� �-he of�ice buildir�g is in trouble, and �hey would like to acconactoda�e and help then as much as possible. Mr. 1?asnussen stated he did rx�� like �o see �-he HRA release funds of any ki�, arxi he �aould abs�ain from voting on any motion tha� would release arsy fur�ds. NI)TIDN by Mr. Meyer, secor�ded by Ms. Schr�abel, to agree �o �Yi.e subordirati.on of �-he HRA's�second mort�ge wi�-h t�ie Fridlc� Plaza Office Building and �o agree to �-he relmse of funds held in th.e Furchase Fund in the �nount of $16, 000 and in �he Lease Fund in �,h.e amaunt of $81, OQO �o �h.e avners of �Yae Fri.dlc� Plaza Bui].ding. ^ Mr. CoRUners sta�ed he �hought �.he way �his has cc�►e up a� �hhe last minute jus� before �,he closing on Nlonday caused him �o be very skep�ical. He -19- HOUSIl� & R�EVIIDPT�Tr AU'gi0� , ALT�[JST 11, 1988 ^ stated �he HR� should have been �old earlier arrl given �ime �o look a � �hi s more �horoughly. It was r�o� fair ar�d m� appropria�e and was m� �he way to do busir�ss. I� was almos� like a leverage�-kir�d of �hing--ei�her �,he HRA rel�ses �he furs7.s or �Yi.e sale wi11 fall a�rt�. As�in, he was no� against subordina�ing �he second mor�tgage or �h.e release of �he $16, 000, bu� he was agair�st �,he release of �.he $81, 000. Ms. Schrabel s�a�ed. if the HRA was �o �urn down �h.e motion and no� release �,he funds a� thi.s poir�, �-he sale migh� fall �hrough; bu� then, it might r�t. I� might er�ouxage th.e owr.�rs to came �o �.he HRA wi�h a s�ronger case. S'he - shared Mr. C�¢ner' s concern, ar.rl she was ur�omfortabl e wi�h. thi s whol e thing. - Mr. Fasnussen s�ated he was c�pposed wi�hou� more irsEornnation. MR. MEYER WI�iDRIIn1 HIS N.D'1'IDN, Wl'IH 'gIE QJNSEI�T!' OF N�6S. SCHNABII�. . Mr. Caa¢ciers s�a�ed if �,he HRA does r.�t agree �o subordina�e, in order for �.he owners �o close on �he propert.y, tr�hey are going �o have �o pay of f�he mort�ge arrl pay �he HRA $40, 000. Mr. N�anan sta�ed. �he HRA had to realize �ha� if the building wen� into foreclosure, the HRA could lose �he whole amoun.t. Mr. Newman s�ated �tiat, as he unders�ood i�, �h.e HRA was looking for �'� ve�i.fica�i.on of �1�.e amoun�s, �-he source of funds, ar�d �he origir�al agreanen� for �hose futxis. Mr. Ne�anan s�a�ted he could turlerstand �he HRA's concerns. He did �hink, �haugh, �h�a� same of �he questions tlze HRA was raising were separate fran �he issue pertainirig �o �he svbordina�ion of �hh.e mor�gage. The building owners cauld close in escrow, but he suspec�ed �hc� would have a hazder �ime closing if �he HRA doesn' � indi.cate any ir.rteres� in subozdira�iirig �.he second mor��ge. Mr. Fasnussen s�ated he jus� did r.�� �hink �he $40, 000 was going �o make or break �he deal. 8. UPDATE ON ""I�iiE UJ'ITAGES" D�7IIJJPMEL�I' P1�I�SAL: Mr. Robertson s�a�ed �his was an irlfornna�i.on it�n. He sta�ed in order to p�ceed with an econanic ar�alysis, s�aff was in �h.e process of ar.alyzir� �he four i�ens 1 is�ed in his mano ciated Aug. 4: (1) �he tax I. D. ntunbers f or �he parcels which �hey inter.d �o use for �.Y�.e develogcien�; (2j a description of �he �,ype of assistance �hey will be seeking f ran �he H RA; ( 3) �he developer's es�imate of wha� �hc� believe the marke� ra�ee rea]. es�a�e �axes will be wi�hou� the use of any assistar�ce; ar.�7. (4) evidence of si�e control. Mr. Robertson s�ated �he ques�ion tha� was raised in July v�ras �he financial abili�,y of Arkell Corpora�ion. He had included a le��er of inten� frcan ^ Fl�ui�ec Praperties �o en�er ir�o negoti.ations �o becane �-h.e co-developer or owr�er of Arkell Cot�;ages. -20- HOUSIlQG & RIDEVIIOPN�TI' AUZHOR'L'I'Y MEETIlQG, AUQ7ST 11, 1988 ^ Mr. Robertson stated Ms. Carol Slavick and Mr. Mark Cl�nens fran Arkell Cogp. were a� �he mee�irx� �o answer any questions. Mr. Rcabertson stated i� was staff's reca�un.enda�i.on �hat s�aff work with �he de�telopers betcveen now and �he Sep�anber meeti.r.�, arid upon favorable review by �h.e HRA, staff will draf� up a d�velognent agreanent. He sta�ed he had included same si�e plans of �,he proposed layou� for �he �vao loca�i.ons in �,he HRA ir�ornna�ion �cket a� �he mee�i.r�. Nlr. Irasmussen s�aated he would like �o request more infonnation on Equi�ec Co�ozatori. Mr. Rober�son s�aa�ed Jim Hill, Public Safe�y Direc�or, had raised the qu�s�ion about whe�her s�ornn shel�ers would be pravided on bo�h si�es. Ms. Slavick s�a�ed stornn shelters would be provided a� bo�h. si�es. They have 92 uni�s plar.�neol. for bo�i. loca�i.ons, ar�cl one uni� on �ch si�e will be a ca�anunitr.y center with a basenen� un�.erneath. it. Mr. Hill sta�ed �-he Ci�y has s�ecificata.ons for s�onn. shel�eers, ar�cl he would li�e �lzen t:o check into �hose specifica�ions. Mr. Ca�uners stated tr�here has always been an access pxnblen on Hillwirrl R�d, ar.� he did no� l�x�w if �,here was a solu�ion �o �Yiat prc�blem or no�. ^ Mr. Rflbertson stated �ha� regarding �he �raff ic and access concerns, tlne access �o Hillwirrl Road wi.11 be improved when the intersection a� Highway 65/Old Cen�ral. is improved.. S�aff also feels that because of �he age of �he �erants (55 years of age and older) �1�.e� will m� generate as much peaJc hour �raff ic as �he m�nal tovanhouse teran� mix would. Nls. Slavick stated �he purchase agreanen� for �h.e Hillwirnl pmper�.y has been sigr.ied ar�d wi11 be pu� �ogether �he raex� day. Ewezy�hing has been agreed upon by bo�h par�ies. - Ms. Slavick sta�ed �hey have a$300, 000 es�ima�e on soil correc�ion casts on the Rice Creek Rc�ad property . Mr. Raber�son stated th�y an�ici�te havir.� eriough ir�fornnation for �his �o be-an ac�ion i�en at the r.iex� meetir.�. 9. ES'I'Il�,TES: T�'I'IDN by Ms. Schnabel, seconded. �i Ms. �snussen, �o approve �he following es�ima�es: - Talberg Lawn & Landscape - $4,580.36 Solidifica�i.on, Inc. - 2,293.92 UEaN A VOICE VOTE, ALL VOT7NG AYE, QiAIRPF,R901V mNIl`�RS DECLARID �IE N.DTION � C�fRRIED UNAN]NDUSZY. -21- HOUSIlVG & 1ZID�VIIIJPN�3� ALfl�iORI*!R N��Il�1G, AiIr�JST 11, 1988 ;�^'1 10. CLAIlKS (1785-1795) : � � MOTION by Mr. Rasmussen, seconded by Mr. Meyer, to approve the check register as s-��nitted. iJFi�N A VOICE VOTE, ALL VOT]I� AYE, QIAIRPER90N CDNlN1ERS DECLARED �iE MDTION CARRIED UNANIl�DUSZY. ADJOU�T!': Chai rperson Ccnaners decla red the July 14 , 19 8 8, H ous i ng & Redevel ognent Authori ty meeting adj ourned at 11:20 p.m. Respectfully su}znitted, Ly � - rriing Secretary -22- . . °�IS1P_�Ll� �._4Ur�1�s��i- _ -- 3��_��_T-iG(:�i�f��(.�_J��Vb� �� P/-1-U�—PdlJ�l �_��¢� �,y�,�'p� � �1 ��- �-� �-���-E�'�' ° ---- -- -- — - ---- - — -- � o ���� �� ►� �� ���--- ���`C ��� �c r �ID �-5 I��� � , /� �'risi✓ ..��L_�L� _ ( �f__ � /�� � st� i ' C� __ i��.7 � e �1 1 ,. N � �t1 D �r�5 D� � d� �_�w`�w►�� - __ � �� .�`"tr"v�" 'i/ - _ /�l ��_��I�� �_ rlrC',�Q. ����'� ! .7J�� - 7S�S� --- ��C°" G� — L�'DC�tt �-i��.aE; zz�3__Nd _f��� L��v� �l�- /��s�� �,t� �� - ��, _ ii ` ./J lJ � � � �l . � 11 J