HRA 09/08/1988 - 29657�'`1
CITY OF I'R.TDLEY
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Vice-Chairperson Schnabel ca.11ed the September 8, 1988, Housing & Rec7evelopment
Authority meeting to order at 7:38' p.m.
ROLL CAI.S.� :
Members Present: Virgini:,a Schnabel� Duane �ra�.:rie, John Meyer (arr. 8:10 p�m,),
LarYy Commers (�xxr. 9:15 p�m,)
Members Absent; Walter Rasnnissen
Others Present: Jock R�b�rtscn, Executive Director of �
Dave Newman, I�RP,, ,�tto�ney
Samantha Orduno, Manag�ient �ssistant
Rick Pribyl, Finance Directo'r
Julie Burt, Asst, Finance Officer
Mark Burch, Asst. Public ��]orks Director
Tim Turnbull � Police Depart�nt
Marlo Johanson, Electroni:c Intexiors
Joe Co�ners , The Commers Co�any
Frnie Paulson, Metal-Telt
Carol Sla.vick, �,rkell Development
� Mark Clemens, Arkell Develo�nt
John �rkell, Arkell Development
Vice-Chairperson �l stated that due to a lack of a quonan until later in
the meeting, approval of the minutes would be continued, and informational
itemS would be heard first.
1. UPDATE ON PLAZA RAl`•� S�CURITY SYSI'E��! ;
Mr. Rabertson stated that at the last HRA meeting, the HIZA directed staff to
work with the architect in preparing a feasibiLity study of the various levels
of security possible in the parking ramp-. Tirn Turnbull of the Police Departrnent
was directed to review this with the archite.ct. After his review, it was
r�7r. Turnbull's recoQr¢r�endation that they work directly with Electronic Interiors
who designed the security system for the l�aer level.
Mr. P,�obertson stated Mr. Ncnnnan had contacted the Chairperson of the HRA,
Larzy Can�uners, who authorizec7. the tireparation of a study to be done by Electronic
Interiors, so the re�rt could be-prepared in time for the HRA members to review it
before the September meeting.
D4r. Robertson introduced Mr. Marlo Jcahanson from Electronic InteriorsF and
directed the HRA's attention to 1�Zr. Johanson's report to PSr. Turnbull dated
Septem'ber 2, which was hand delivered to the I�3A �rs on Tuesday, Sept. 6,
D4r. �urnbull sta.ted he thought this report was a fa�xly comprehensive report
'�'' and provides what he would consider to be a model or very sophisticated approach
to security relative to the plaza ramp facility. He would like Mr. Jahanson to
give sane inforniation about the report and respond to any questions the HRA
m�nnbers might ha.ve .
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HOUSING & R�EV.QDPA7ENT AUTHORITY P�t'TNG, SEPTII!lBER 8. 1988 PAG� 2
Mr. Johanson stated they are consultants for video, auda:o, and media systesns
and securities was one of the general areas which �alls w.ithin their expertise.
They received. a request for information related �.o su�eillance and protection
of personnel within the ramp. They felt it necessary to broaden tlie topic some-
what to include the broader scope of per�on�l. safety th�l.t woulc7.effectively
improve various aspects of personal safety inclucling prev�ntion of misha.ps due
to falls or neh.icular accidents as well as the �exy itnportant aspect of personal
violence.
Mr. Johanson sta,t� the �ch.itect� and engineers have a,lxeady included a rnm�ber
of the measures already included in the report, He ha.d included them in the
report so the HRA �rould be appreciative o� tlie extent pf' tl�e ir�asures ` that are
possi.ble and also to iriake the HI�1 �,ware of tl�ese features when they s� them in
the documents,
Mr. Johanson stated the prima�y object.�.''ve for i:m�xt7v'�ng �ersonal safety is to
provide a cleterrent, anc7. if �o�thing daes ha�pen, to pxovide a means of quick
responses Good. lighting, Iimited access, as well as px'Qvid?�ng defined pedestrian
and vehicular paths ccantx�ik�ute inpst to these �erspnal �afety aspects, but an
e�'�ective surveilla,nc� system will pxova�de a sw��`t response Q
r�r. Johanson stated. they have recc�unend.ed various measures that could be us�i to
improve the personal safety�..but the extent of the implementation was the City's
� decision.
Mr. Turnbull statecl he would like to take this oppoxtun.i:ty to outline specifically
what the report does say as far as the security measw:es are concerned. He sta.t�7.
the xeport primaril� dea,ls wi:tli a two level secua:ity system and deals with this
in three areas:
1. Visibility. Visible corridors- �ae�ng able tc� increase the ]ighting
capability of botfi the upper level and the lvwer level. The report
goes into sc�ne detail of the level o�` lightizig that is desired and
the particular type of lighting that .is des'ired� ()ne area is being
able to increase the abiLity to �ee anything that .is going on, The
concern was partzicul�rly in the lowe� level A With i:ncreased. illtunina-
tion in the 1�aer level, there is a better sense of security. Lighti.ng
is i��portant not only so a per�n can see c�hat is going on, but also
so the surveillance cameras positioned. in the lower level and the
upper level have a bettez� visual capability.
2. Tl�ree cameras are suggested for the upper level. 'I�o camers are
suggested for tlie lower level witli varic�us levels of sophistication.
These will be hooked to a m�nitoring system that will be located in
� the reception area in the Police Department.
3. Being able to listen tp what is going on in t%e upper level or the
l�r level and have the two-way communication syst�em. Part of the
approach this plan reco�nends is a very clear indication that the area
�'"`, is under surveillance and is being n�onitored.,
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Ms. Schnabel asked Mr. Johanson if he felt what h.as already been planned for the
lighting �aas adequate,
Mr. Johanson sta,ted that in order to l�mit tl�e seope of their report and to make
it budgeta�y feasible, they did nc�t dc� an analysis of tt�e drawi:ngs except to
look at them briefly. It did a,ppea� that the engineexs have �nade scane effort
t�o achieve a high degree o� unifo,rnuty in the lower levelP He sta.ted they under-
stand the interior st�faces wexe going.to be p�i.nted which was a very effective
means of making lighting more e��icient.
Ms . Sctuiabel asked why three caaneras were rec�nded ixi tY�e upper level and
two in the lower level.
Mr. Johanson sta.ted there was three main axea,s o� tt�e u�pe� level� Qne wa,s near
the building so the majority o� the lot can be 'viewed l�y � single eanroera at tlia� _
loca.tion. Virtualiy opposite that tp 5th ��treet entr�nce� that camera would look
dawn the stairs wl�.ich is required for egrees from the lc�aer level, as vaell as
watching traffic coming ine He believed there was a�1 lot to the south
which was also easily accessed fro� the laxger lote A third camera would actually
view those vehicles appro�.ching the Police ]�epa�tment o� entexing the lr�wer level.
That camera would be fixed,
Mr . Prairie sta.ted that xegaxding the locat�..on o�'. this aramp, wouldn � t the location
of the Police Depart�nent prQ�ri.de sc�ne cletexrent to any prcablems�
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Mr. Johanson sta,ted, yes, .�t would. They n�nt�:on that a,s a promine,nt ele�nent
.an the signage and the visual aspects of thi:s spaae.
Ms. Schnabel stated that at the last meeting, there was some discussion about
whether or not the Pol�ce Dep�nt �voulci actually be i�nitoring these camerasA
Mr. Turnbull sta,t.ed he had spoken with Jim Hill, Qublic Safety Director, that
afternoon and they examined that issue,. He stated that one of the converlLS
i�enever there is a surveillance type of security system is the fact that
these cameras are in particular pc�sitions �nd they are seeing different thirigs
and projecting it to a�nitor. Somebocl� has to be there to watch the moi�tor.
Very clearly, it is going�to be difficult fox the people who are currently assigned.
to the front office area tt> be in�nitoring ttve�e monitors and also dealing with
the publa.c, and doing their ot�ier duties, The�efore, it was .unportant for the
iiRA �mbers to understand that there would be a need �or an additional person to
monitor the caz�ras that wexe pxc�idinc� su�veillance to the upper and/or lower
levels of the parking ramp in order to provide an assurance that, not only was
the caznera seeing what wa� going on, but sameone was watc.hing the nwnitor and
wpuld take the appropriate action to provide a response. The cameras themselves
do riot provide the security; t-he fact that svmeone is wa�clli:ing the cameras and
will provide a response to an action will provide that security. The reality
was there will r�t always 1� a person in the front office of the Police Departrnent
to watch the monitor, and there will not always be a police officer in the building
to respond if there is a need.
Mr. Turnbull sta.ted the main time of conc:em relative to personal safety would
be in the evening hours between 5:00 p.m. until whatever time n�st eveni.ng
meeti.ngs get over. That is the time when the City would need the assurance that
the surveillance was being �onitored.
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Mr. Turnbull stated he did not believe the Police Deparf�nent's front office staff
had the capability to c�uaxantee thex� will be t�ao people in the evening during
those hours. It was Mr. Hill's concern tt�at not only is there a surveillance
system, but tha.t there is actually sca�reone there to monitor the system so if there
is a need for some action, �here is sameone there to recognize that need and take
the appropriate action.
Mr. Robertson stated he �'elt thexe was three areas of cost here:
1. The poten�tial far upgradi.ng� the architectural'_desiqn_and ma.teria].s---- -
that are already in the plans and specifications. Mr. Johanson
refers to that in the first paragraph on page 10 of the report. Staff
— is turriing that report over to the architect to give the City an
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- evaluation on `a�iat tYie cost �.n�act is.
2. Electronics. MrsJohanson has simenariz� the video, audio, and
interactive systesns fox a total of abqut $35,000.
3. Potential staffing costs for part of a day and part of a w�k.
Mr. T�rnbull stated the estinlate Mr. Hill had given him, based on a 40 hr. week
was about $12�500 on an annual basis `aith today's dollars, Tt `aould be sam�one
like a Communi.ty Service Of f icer �
Ms. Schnabel sta.ted that if the HRA decides that they cannot afford this kind
� of surveillance system and salary to morLitor the suzveillance system, what were
scane of their other options?
(Mr. Meyer arrived at 8:10 p.m.)
Mr, Turnbull statecl there were a rnunber of different approaches the Ccm¢nission
c:ould take. 'I"he first thing that was rather obvious was if they have to hire
someone on a 40 hr. a week basis to monitor the sys�n, they could have this
person out walking the upper and lower ramp and riot have any sueveillance equi�unent
at all.
Mr. Z'urnbull stated another option was rather than have a suYVeillance syst�
that was an upper and lower level systezn, they couid still have what is existing--
no surveillance syst�m on the upper level� He was �peaking primarily of the
camQxas and the conmunication aspect. He would strongly reoomrend that the
HItA look at the lighting issues and the architectural issues, r�t pr�viding any
spaces for a person to-Yi.ide, prov.iding a high level af 1.ighting on both the upper
and lawer levels.
Mr. Turnbull sta.ted they could eliminate sc�nae of the sophistication in the equilr
ment. Hawever, each time they elimina.te some costs, they also eliminate ,
potentially soire of the security. They cou].d eliminate the entire system and
not ha.�e anyone monitor it. That was also an option.
Mr. Burch suggest�l that people l� educa.t� to stop by the Police Depart�nt
� to ask someone to�watch or walk them to their cars.
Ma:, Turnbull sta.ted that was a goad suggestion, but that Qnly hslp�l people
going in one direction--the people leaving the buildang� nqt the peaple coming
in.
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Ms. Schnabel sta.t�3 she was not totally vonvinced. that a security person walking
the ramp would be that effective.
Mr. Turnbull sta.ted that having a Community Service Officer or sameone li3ce that
mi.ght be a deterrent just by the presence of that indivi:dua.ls Tf a Coiraminity
Service Officer were to oome upan an event that was a]ready in progress, it should
�t be anticipated that this was a trained law enforc�nent officer who eould
perform as a law enforcment ofticer.
Mr. Prairie stat�7. this reall� is an area that h�s not had incidents of crame,
partly beca.use of the presence of the Polic� Depaxtrnent, He stated. there will
be painting of the lo�aer level, more than adequate lighting, and there will be
s�ne cazr�ras that wi.11 be watchecl sane Qf the ti�, �t �aould certainly be better
than what they riow have.
Mr, Turnbull stated it was his awn personal o�ini.on that the City takes on a
liability if they provide �i�zhat a�pears to be a s�uzveillance system and provide
what appea,rs to be an area, that is under surveillance, but, in fact there is
nothing betLind the camera. They ha�v�e given people the impression that they have
a certain level of security, when in fact there rea,lly is no security. On the
other hand, if it is very clear there are no c�meras, rn� audio system, no sign
that says the ramp is under surveillance, etc„ but the ramp was well lit, then
�eople do not have a reasoriable expectation that they are under surveillance.
or ha,ve a higher level of security than they actuallX have.
Mr. Robe�tson stated there was another architectural improvement mentioned.
before that the City is aslcing for a co�t estima�e on. He stated the north half
of the lower level is open for venti.la;tion, and there was just going to be single
raiLing. The architect is doing two de�ign alternatives. One would be multiple
a�ailings to ma.tch the railing design on the upper level, but close enough so
scaneone �uldn't crawl through, The othex design altexna.tive was a chaa.n link
fence � �
Ms. Schnabel stated there was another question that needed to be ans�vered and
that was if they do go with a camera syst�n and it is determined that an additional
staff person must be hired, was that person's salary going to be charged to the
HRA or would that person be warking for the Police Department also where the
Police Departxnent would be sharing that salary oost4
Mr. Turnbull stat,� he did not have an answer to that question at this time.
Mr. �on �tated he felt the policy they have co�dtted to so far was to
max;m;ze the passive safety syst�r-the painting, the adequate lighting, and
the screening .or barring of the ven�E.ilation opening. If the HIZA wanted t.o go
beyond this, then he would recoir¢nend that their priority be for the lower level
of the ramp, s.imply because the upper level has not ha.d any level of security
for over 40 years, and it c:ould continue that way.
Mr. Turnbull stated if the HRA decides they want to go with some level of
�•., technical or electronic surveillance, the architect will need to know so they
will know where the cables have to be laud.
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Mr. Robertson stated that would require a change order, but the cost would not
be very great.
Mr. Meyer stated for right nc�a, he liked the higher level of lighting and the
other architectural features that are being utilizecl for security reasons.
Ms. Schnabel sta.ted.she would like sc�me opinion regaxding an addi.tional staff
person to monif:or a cam�ra surveillance syst�na Would the Police Departrnent
be in a position to hire someone full time, part time, or not at all? Tn�at are
the feelings of the Police Departn�ent on this?
Mr. Turnbull stated he `aould respond to Ms. Schnabel's questions at the next
HRA meeting.
Ms. Schnabel requested that t�e "Plaza Ramp Security �istem" item be put on the
October agenda.
Mr. Tuxnbull stated the contx'�ctu�'al �1a=.g�tiQn the' Ci�y� h�;s �:.th: �lec'tx'Qnic
Intexiox Izas heen comple�ed;w�.th: the..�p�ti.on P�Y�-ded ?� tI� �1ax1, �� the
HRA �aan.ts any additienal i.nfax�at,�on� then ��e axxan�e�,nt n�nas.t lae �de tQ
Y'e�l �"11E1L' S@Y.V1C'.GS e
MOTIQN by Mr. luieyer, sewnded by Mr. �'araix�.e.� tca a,utho�'ize St��' tp x'et�:n the
� seryices o� Electronic Intexi,ox fAr a,ny addi.tio�al. c�n�ultinc� deened nece���
by Sta�� and to authorize any chanc�e. qaedex� . deeaned neces�� h�r Sta,£� to �rc�v�.de
for the installation o� nece���r cc�nd�it �c�� the a,udia� �..�deAr and interact�.ve
c���n�ni.cation system in the paxk�:ilg xaz�tp m�,7.so � to autho�ize: sta,f f to �x'k with
the enQineex�s in the upgrading of li:gh�ng a�nd othex archi::kux'a,l featuxes ta
con�orm with tlie report submitted� by� El�txonic, �tex'iAx e
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2. APPROVAL OF AUGUST 11, 1988, H()U�TG &.RIDEilEE�Q�ENT .�U�HQR�I'X NL�VEJT�S:
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MOT�ON by Mr. Meyer, seaonded by Mr. Px�a�ie, to a�xove the �,u�ust ll, 1�88�
Housing & Redevelop�ent �,uthQri.ty md:nutes as �a:tten.,
U,pON 1� VOICE V�71'E, ALL VQTING �EE, �TTT�E—CH��RPERSC�N SC�INA$EL DDCZ,AR� THE
MQT�ON CARRIED UNAN�NipUSLY,
3. CONSIDERATiON OF A RESOLUTION REC,�T�TG Tp R�EVEI�O� P�. NO e 1 A�ID
AMII�IDING 'I'I� MODIFICATIQN RIDESTEL�UU�MENT PI,AN REL,�T'3NG �TO .�ID AN�ING TI�
TAX INCRII��N'r FIY�TCTNG. PL�TS REGA�'Il�TG 'T'Q TAX : Z1�T�RII`�1T FIl�INCING PLANS REL�,TTDTG
1V i[-!A 1iv�.l�[Y•iG1V1 ,C 1iVC�LVI..J.LVIz LJlalitll:lD LW e G"1I1P(lJUl7l1. 1VlJs 8. Wl'l�t].I,LV �l�t.LC� Yl<W.C�I:l"� E�YiL�;
4. CONSIDERATION QF A RESOI�JT'TC91�7 REQI7ESTING P, PUIiL�C �TG REGATiNG TO RIDE�TEI,OP—
MENT PR0.TDC°I' N0. 1 Al�ID THE At�N�N'.0 OF 'THE 1HODIFIE� RE�EVELO PLAN RECATT�TG
THERE�O ADID TI� 'PAX Il�TCRII�LIIT F�ITCING DT�CT'S �Pe 2 TI�OUGH N0. 8�TE3TN�
�`'� PRC�T�CT :
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Mr. R�bertson stated both it�ns #3 and #4 could be deleted. He stated Ms, Ordturo
was at the meeting to ans�wer any questions the HRA members might have. These
items were added to the agerx�.a in case wh�n Nlr. O'Meara returned from vacation�
he felt further action was reqiu.red as a followup to the HRA's action in
August including the park'zr�g ramp in the t.� increare.nt plan. — —
Nis. Orduno sta.ted that in the past whenever they have had a specific pmject
within the t.� increment district that was �rrithin the redevelo�anent project area.,
they have amended the r�evelo�ane�t glan and ea.ch of the tax iner�nent financing
plans to allaw for increased project costs. However, at this time, when the HIZA
passed the resolution at the Auc�xst nieeting whi.ch essentially found that the
construction of the parking ramp was consistent with the redevelo�erient plan
Mr. O'Meara, after returning from vacation, felt that resolution was sufficient,
and that the parking ramp and the prC�ject casts that would be associated with the
parking ramp were alrea.dy built into the reclevelo�xnent plan, Therefore, t1�ere
was not a need to amend the redevelo�xnent plan or the tax increment plans.
5. REVIE6J PFiOGRESS OF TI� WINE'�,DEVELAPII� FOR 57'l�i PI;AC�:
Mr. Robertson stated this was an inf�rmationa,l it.�am that �aas addec7. to the age�7.a,
Mr. Robextson sta,ted Mr. Bill Fogerty of Tniinfield Development su�sn.itted a report
that day, copies of wh'ich. wexe provided tA th.� � m�15.�'s at the n�eting. He
,�, stated the regort was. fai.rly self=explana�o�y, He sta.ted Sta,ff intended to
stay in close c;ontact with �irifield to era�ure th�t they stay on their ti.metable.
Winfield must have a substantia,l. outLine of a redevelopment agr�nent by the
October meeting, so tha� if it i�,s: £avoarabl�r :rec�.ived by��the T�RA, staff can be
c3i.rr�cted to prepa.re iinal develoFxnent agreeinent �or action 3n November which will
be �0 days.
Ms.Schnabel stated that sounded reasonables
Mr. Joe Con¢iners stated they continnued to be ve�;y intexe�ted in the pxoject,
because of' the options they h�d. They r„iould like to oontinue to morLitor
the project until soirething happens.
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Mr. Robertson sta.ted the City Council review�7..the proposal at their last meeting
on August 22. Council directed the developer to meet t� criteria before pra-
ceeding with the regulatory matte�s of the perntit, One criteria was to hold
neighborhopd �etings in the vici.nity of the two site locations and to report
back to the HR� at this meetinge S�ndly, the Council requeste�cl "The Cottages"
project be substantially the same level of intensity as the Stillwater project.
The Stillwater project was abaut 11 1/2 uri.its per acre. It looked like the
Iiillwind density was about 9 units per acre, and �bout 12s3 uni.ts per acre on
the Rice Creek site, The Council felt that criteria was substantially satisfied
� with v�h�t was done in Stillwa,ter.
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Nlr. Robertson stated that at the first neighborhpod meeting on the Rice Creek
Road site, there were three issues. A substantial airount of people felt the
density is too high. There was a question of hc�,v the maintenance of the project
can be ensured so there will be no detrimental effect on the surirouncling
properties, and there was some question as to �vhether a proj�t of this kind will
essentially devalue the single fami.l.y residences around the north and east of
the project.
Mr. Robertson sta.ted. that at the neighborh� meeting on the Hillwind site, the
questions eentered.axound the traf�ic �lcxus in and out of the project, Traffic
will go dawn Po1k �nd Lynde Streets until the intersection at Old Central/Highway
65 is improved. �,nc�ther q�aestion was whe�her clrainage can be adequately eovered
and if state or'�edexal pe�mits are neecled kaecause of the proximity of that
drainageway and water quality project therea � third question was haw could
the City e,nsure the project will stay a projeet strictly for the.elderly--
through cavenants of some �ort-�-so if there is a sale of property, it will z'r�mai n
an elderly project� Can some kind o� maintenance bond be secured to again give �
the City s�ne assurance that the project will be maintained at a high visual
quality for s� feasible length of time?
Mr. Rabertson st�ted there apparently,�,s also s�ne d3scuss�.on on an alternate
site, and he would let b�r. Arkell di:scuss th.at.
,,,-.l Mr. John Arkell, Arl�ell Develo�xnent, �tated eity staff and Councilmembers ha�e
been out to the Stillwater project and have reviewed that site. He stated
they have been asked to do certain things. One was to tie up the land with a
purchase agreement, an.d �fiey fiave done that� They have conducted the city nei.gh-
borhood meetirigs requested by the City. They �aere asked tc� come up with a
guarantor on the bonds, axid he fiad lettex�s on that �rom Equitec, which is a
large New York Storac Exchange co�any� that �:11 be their partner in this project,
He stated they have been working on this project for appro�mately six m�nths
and intensely for the last oouple of months.
Mr. Arkell stated it is his understandi.ng that the next step is to receive
conceptual approval by the HRA to go on to the next stage.
Mr. Arkell stated the ma.in. concern at the neighborhood meeting on the Hillwind
site was traffic. On the Rice Creek site, he believed the people in this area
would like to keep a 2 1J2 acre wooded lot behind their homes. He tried to
explai.n to the nei.ghbors that it is doubtful residential homes w311 ever_go
in this area, and that "The Cottages" are tl�e next best thing beca.use they
are single stozy deta.ched housing.
Mr. Arkell sta.ted dra�nage is a major issue on both areas, and they will defer
to the city engineers and plans to ensure proper drainage,
Mr. Arkell stated that on the Hi.11wind site, he thought the second n�eting
went very well. 'i'he people seemed to agree that a senior project would
generate the least amount of traffic.
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Mr. Arkell sta.ted they spent six months in Fridley trying to find a gi�ce of
property. 7'hese t�ao sites are the last two options they have left, They
have lodced at a�cial site, but they would like to stay away frcxn that
type of zoning. He stated it has been a difficult task for staff and for
thenselves .
N.� . Sc�nabel asked what guarantee they had that this project would remain a
senior citizen development.
Mr. Arkell stated theis financing will recluire tlzat it be a develop�nt for
serLi.ors, 55 years of age and over, Their housing revenue bonds �e that
they deal with a oertain age, and there are �estxictive covenants that can be
placed on the property. He sta.ted he didn't hav� any problem with that.
Mr. Arkell sta.ted this will be tfieir first venture with an FHA format. FHA
r��;res a maintenanc� res�rve. In order to address the �cerns about maintenanoe,
maybe there is a way, if they have a right to that reserve, they c�uld gi:v� the
City the ric�t to go in and c7o tlze maintenanae, usirx� the funds in the reserve
acoo�t.
Mr. �bertsca� stated that in talking with Nancy Jorgenson and Dermis Schneider,
they would like to have a gen.eral policy discussion at the Manday City Council
��-� ng on Sept. 12, on the follvwing .policy issues :
r"� 1. Wh;�.t is the Gity's policy on el'derly housing?
2. Ti�at is the HRA's� general policy on tax incren�ent projects?
3. To look at the types of elderly housirig and their locations.
Mr. Robertson stated that based on a favorable outcx�ne aft�er that discussion,
staff will praaeed witfi the financial review.
(Mr. Can�rs arrived at 9: ]5 p.m. )
Vice-Chairperson Sc3lnabel declared a reoess at 9:25 p.m.
Qzai:rperson Co�rs rec�nveried the ireeting at 9:40 p.m
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7. 1�'S� `\ � �SO���T�S�':k�.'��K:
Mr. C�aners sta.ted he had received a lettex f,x�n Jerry Paschke`'s lawyer dated
l�ug. 30, 1.988, settinc� forth l�i�:. Paschke''s �osi:tion with regard to tlie hold back.
As the HI�A m�mbers knew, they have been over this before, so he had asked
Mr. Mark Burch to attend the HR� meeting to again review this situation and make
a decision. He had hoped P�ir, Paschke would have been i.n attendance at this
meeting .
Mr. Burch stated this was referring to the development of the Paco Industrial
Park, north of 79th Avenue, and west af Unive�s�.ty Ave9 V�en Mr. Paschke first
^ built those buildings, he had an original drainage plan that was appmved by the
' City. During the aourse of the project, Mr. Paschke continued to change the
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P�1GE� 10
drainage plan, and he never rea.11y �ut any kind of �, drainage in until the end
of the project wfien he `aas left wi.th some undevelopaT�le lots, `ahere he created
a ponding•area. He stated the City has workecl for sevv�rral years to get some
improvenents into that ponding area, and P�Lr. Paschke ha,s never ccenpleted those
improvements ac;co�ding to the plans he gave the Ci:ty. A year ago, the City
spent $4,000 on improveme.nts to the ponding area., The City did inform Mr. Paschke
of thi� I�fore they did the work. Since tTie City put those isnproveanents in,
Mr. Paschke has done no tnaintsnance of the area. No mowing was done over the
s�r. 'I'wice the City has had to mc�a that area,. Mr. Paschke has simply made
no effort to mainta.in the �,rea., and the �roblem was : hcyw do they get people
to maintain something once a project is ��pleted? They are now receiving
corresponden.ce from Mr. Paschke stati:n.g that Mr. �a.schke �aants his performance
bond m�ney back. Some of that m�ney has alrea,dy be�n spent for improvements�
Mr. C�rs stated $4.,200 has been spent out of $10,000, leaving a balance of
$5,800. He stated he felt Mr. Newman sh�ld contact Mr. �aschke's attorney and
give him the complete history of this problem, telling Mr. Paschke's attorney
that the City has recei:ved no coaperation whatsoevex from Mr. Paschke and that
they will still hold bac7c the $5,800..
The HIZA members were i.n agreement with. this suggesti_on.
8. CONSIDERATION OF AFPROVAL OF TO TI� CITY FOR MOORE LAKE QUALITY
IlKPROVII�ID.VT PRQTflGT :
Mr. Robertson sta.ted the work has been substantially done. In November the
HIZF, set aside a budget of approximately one-half million dollars. The HRA is
being encouraged to reimburse the City for the actual costs of the project & final cost
at the elose of the project. It is within budget.
Mr. Pribyl stated the I�.iA members had received at the meeting a S�manaYy of
the Moore Lalce uiater Quality Project. GIl�a.t this slmunary did was recap the
budget they had, the exp�nditures to date, and the projected exper�.ditures to
complete the project.
.M(yrION by Mr. Meyer, seconded by Ms. Schnabel, to approve the reimbursement to
the City for the Moore Lake Quality zmprovement Project in t1�e amount of
$382,980.55, which is full pa.pment of all anticipated costs.
UPON A VOICE VO�rE, ALL VOTING AYE,
CARR]ED UNANIl�lOUSLY �
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- 9. Il�'ORMATION ON CHANGE O�ER N0. 2 QN RICE CREEK RUAD IMPROVII�N'I' S°I' 1988-1
AI�ID 2 :
Nir. Rabertson statec7 this was an inf+�rm�ata:on �.t�a►i. 'rhe Counci:l appxwed the
Change Order �or $22,857.30 which included storm se�uer �.iping for the Midwest
V�n facilty upgrades per the owner's petition and street repaLr and replacement
for the additional roadway mue,lc excavation. This Change Order increased the
^ HI�A's cost of the Rice Creek Road project by $11,145.30.
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10. Il�TFORMATION ON CI�NGE ORDER NO, 3 FOR STRE� T1�9�]ftO�PII�T PRQTECT S`r 1988r�1
ADID 2 :
Mr. Robertson stated the budget the I�, adopted for the Rice Creek Roa.d Project
was $1.2 million. The actual original contract amaunt was $851,807. The hi.stary
of the ah�nge orders were on agencla pa,ge 13�s They:h�. an original change order
of $13,901. In order to expedite the project while work was being done in the
field, the Council authorized th�e $22,857.30 (Change Order #2). Change Order
I�. 3 was for unanticipated soil correction cost5.
Mr. Burch sta.ted this r,hange order was fleces�azp to inco�pc�rate changes in the
signal sysfiem at Ri.ce Creek Raad and T�H. 65 wi�ic�i have been ordered by the
Minnesota.Department of Transportation and additional soil corrective work
necessaty in the Rice Creek Road�
Mr. Burch s�tat�l that in looking at the change orders�-not all of the _
costs went to the HRA. The storm.seaver°costs �re gc�ing to be a direct assess-
ment to the property, and the HI3A"should not be involved in that at all.
The HRA was included in this change order, and that was where there was some
confusion.
Mr. Rob�rtson rea.d frc:�t the April I�, 1988, HEt�A minutes, where Mr. Newman is
talking about the assessment agreement at Moore Lake Coicun�ns: "They antieipate
the total improvements to be $1.2 million, of which $665,000 in assessments will
�'� be paid by the adj oini.ng property a�mers . As part of the public isnpr�vements ,
the HRA will agree to do c;ertain landscaping along that public right-of-way and
that the landscaping arill not be less than $95,000, Also, tfie adjoining property
owners will agree to mai.ntain right-of'-way.s�" '1"hat was the basic structure of
the total improvements. ,
Mr. Prairie sta.ted it would be cleaxer if that was somehaw braken out for them.
Mr. Pribyl stated they can. ca� back with a breakdowm and what the actual HRA
costs and assessments are.
MOTION by Mr. Prairie, seoonded by Mr. Meyer, to appro�e Change Order #3 for
Street Improvem,ent Project ST 1988-1 and 2 in the amount of $52,095,50
UPON A VOICE VOTE, ALL VOTIlQG AYE, CT�ATRPERSON C:O�.S DEQ�RE� TI� MOTION
C'ARR�D UNANIMOUSLY �
Nir. Commers stated. he would also Like a report on the Moore Lake Commons Project
for the next meeting.
11. CQNSIDERP,TION OF A RESOI�L]'I'TON TB ACQUIRE OPTION RIC�iTS TO PART' OF PLA2A RAMP
�I'.C'E Tf�20UGH I�ASE P,GRE�1T:
Mr. Robertson sta.ted that as part of the overall pa.cl�age of the pla.za ramp,
they had to renegotiate that portion of �the purchase option wh�re at �the end of
�.-� 30 years, the office b�aa.lding paxtnership could �uxchase a t�ortion of the
parking lot for $100,000, a portion o� that lot was in the footprint of t1�e
parking ramp. The HRA authorized staff to proceed as outlined on agenda pages
1- 1B and 2- 2P, letters frc8n Dave Newman Qn a lease that w+ould be extended
the 30 years to 99 years. During the entire term of the Lea.se, pa.yments would
conti.nue to run at the amount of $800 per �nth,
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Mr. Robertson stated the office building partnership cvould wai.ve their option
to purchase a portion of the parking lot at the end of 30 years and at the
end. of 99 years they will have the option to purchase a portion of the parking
lot for the then fair market value, A ma.jor change, however, was the fact
that the portion of the parlcing lot which they now h�ve the right to purchase
does not include the paxking ramp� Furtfier� the City would lease from the office
builcling partnership approxima.tely 8,000 square feet of office space at a
substantially reduced rate in order to make the construction proce�7 faster.
In return the office bui:lding part-nership would waive any claims in condemnation
or other�,rise against the HR�, and tiie City arising out of the temporary taking
of the paxking lot for constructican purpc�se5. The HIt�i arid City would then shaxe
the cost of $80,000 of the lea5e paym�nts-�-the City paying $40,000 and the HRA
paying $40,000.. The reason the �,would be paying one-half of the rent was
due to the fact that a s a result of the office space lease, the office building
partnexship is wi.11ing to az�end the paxking lot lease and is willing to waive
any claims for disr�xption to the parking lot.
D�r. Commers expressed concern about the I�, paying one-half of the lease payment.
He was not sure it sounded very good.,
Mr. Newman stated this was discussed informally with the City Council and the HI3A.
They discussed haa to alloca.te the $80,000, and it seemed to be a reasonable
solution to split the �st between the City and HRA.
^ Ms. Schnabel sta.ted with the few staff people who provide sezvic�es to the F�A,
it seemed the HRA was paying a far greater portion than the City,
Mr. C.ommPxs stated t11e Ht� c�a� never � told that �khe ramp would encroach on the
office building's land.
Mr. Newman statecl he disagreed, There was a joint meeting held between the HRA
and City Council when the parking ramp was outlined by Mr. �eshi,
and he specifica,lly stated that the office building partnership had a right to
buy that portion of land-that encroachecl on the parking ramp, and that they wexe
going to ha.ve to take a look at h�a they were going to resolve that problem.
Mr. Prairie sta.ted it would be vezy difficult to explain to a citizen asking
the question of why the i�EtA was paying for half the rent of the office building,
Mr. Con¢ners stated there seemed to be four members of the HRA who did not have
any reoollection al�ut the HRA and City sharing the oost of the lease payment,
although they distinctly rene.mbered the $80,000. Maybe it was not discussed
that the HRA was going to have to pay one-half of it.
Mr. N� stated he oould understand the HRA's frustration. It was possible
that perhaps the staff had been remiss and had nat been more clear on this;
har�ever, he ]�etiv that as they have gone through this proaess, staff has made
a deliberate effort to inform the HRA and to keep them updated so nothing would
�re as a suYprise.
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Mr. Con¢ners stated everything the HRA has been doing the last few months has been
directed at the I� and tlie City doing as mucti. as they can, .to help the office
building par�nersliip cju.t of their fi:nanci'a� proble�ns, �1nd� this appeared to be
another way of doing that. He sta.ted he did not thinlc the HI�, had. to give them
an� more money to make that project go� This was plain largesse fran the HRA.
He stated that the HI� might as well go ahea.d and apgrove this, but he did not
feel it was being done right.
Mr . Newman sta.ted the question was : Ti�at type o�' role does the HRA want the -
to play in this type_of situation? They were concerned in the beginning that
they should take a role with the primary foc'us on tx.ying to do -
everything possible for the HR�i� On the other hand,�they are riow looking a a
project in a district that has some prc�blemsf and if they work properly together,
there could be some appreciable benefits to the City and the T�Ae
Mr. C�rs and Mr, Prair.ie agreed w.ith PZr. Nc�wman and that they should follaw
that kind of philosophy,
MO�I'ION by Mr. Prairie, seconded hy Mr. Meyer, to approve Resolution No. HRA -�
1988, a"Resolution Approvi7ig an Amendment to fihe Leasehold Agreem�,nt Between
the Fridley Housing and Reclevelo�ment Authority and the Fridley Plaza Office
Building Partnership" with �the fallcswing �tenclments:
Paragraphs 1, 2; and 3 should be prec�ded by "Wf�I�AS" clauses and
� paragraphs 3 and 4 should be preceded by "T�'ORE" clauses�
Paragraph 4 be amended as follc�as: "The HI�A has agreed. to pay :one�-h�lf
of the lease payments not to exceecl $4Q,Ofl0 in consideration of t�
Partnersli.ip's will�ngness to amend e Par ` g Lot Lease and willingness
to waive any clain�s against th� HIzA for disruption to the parking 1Qt,"
UPON A VOICE VOTE, AIZ VOTTNG AYE � CHAII2�ERSON CQNIl!'�R.S DF�CLARID THE MOTION
CARRIED LTNAN�.lT'IOUSLY.
12 . CONSIDERATION OF SUBORDII�ITII�TG i�'RP,' S SDCOl� MORTGAC� ON FRIDLEY PLAZA OFFICE
BUII,DING:
MOTION by Ms. Schnabel, seoonded by Mr. Prair�.e, to approve the subordination
of the HIZA's second znortgage on the Fridley 'Plaza O�'fice Building.
UPON A VOICE V(�1'E, ALL VOTING AYE� CHAIRPERSON C�"Il�RS DF]CLARID THE MC7rION
CARR� UNANIl�20USLY .
13. CANSIDERATION OF PROV�ING DEF�SE 7�1�ID Il�IDEN�TI�'ICATION TO RICE PLAZ�1
SHOPPING CEN'I�R:
Mr. Newman sta.ted Clark Eng9neera:ng recently sezved a Notice of a Mechanic's
Lien on the pr.operty which was fhe subject of the proposed. development with
Lou Lundgren. This propexty includes both the property owned by Bob Levy as
^ well as the property �wned by the HRA.
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Mr. Newman stated that on pa,ge 6 B was a letter he sent to the attorneys
represe�.ting Clarlc Engineering ;demariding that this lien be inanediately re�noved.
Mr. Newman sta.ted he was seeking a clisection fxnm the HRA in response to
Mr. Levy's demand for defense and znd�ruzifi:cation, A proposed. agreement
receive�7. by Mr. Levy on Nov, 20, 1985� stated that: "Rice Plaza hereby
consents to preparation of a site survey for Plat 7, The City and HRA shall
bear all costs and be responsil�le for all damages associated with that survey."
E�en though this agreement �aas never formally executed by the HRA, it was
certainly the intent of � tYie parti:es to inde�nnify Mr . Levy for any damages that
might result f rc�an the actions engaged in by Mr • Lur�dgren .
Mr. Co�cuners agreed. He statecl legal counsel should look into this and see if
it is a v€.�l.id and leg.itamate claim. 'I'hey should also tender payment frcgn
Mr. Lundgren.
MOTIflN by Mr. Meyer, secc�nded by Mr. Prairie, to direct staff to notify Mr. Levy
a,i t t e HI�A will indeemnify and rencler him harmless, and that the matter will
be ha,ndled by tlie HRT�' s lec�al staf f �
UPON A VOICE VOTE, �LL VOTTNG ,�EE � C�PERSO�T CO�RS DDCL� 'I'HE b'l�OTION
CARRIF� iT1V�TTMC�JSLY'�
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14 � � ��'ORN.�T�ON Q1�T UNTiI�R��'T� '�1,�UE�7'�'�P�`Sp
^
Mr. Rol�rtson sta.ted that on agenda page 8 and 8-� was a letter from Barton-
A,scrnnan Associates out]_ining the imp�ovements previously appiroved by the HRA .
They were detailed in this letter, essentially i:n desigri spec outline form, and
the budget must xiaw be reviewed.by MnDOT, Since this is a Sta.te Bid Highway,
everything has to be reviewed by MnDC7I'.
Mr. Newman sta.ted after MnDC7r has reviewed and approved the plans, staff will
prepare maintenance �st estimates for HI2A revie`a and then at that time, the
HRA can decide on haw they �ish to handle `tiv-s and discuss it with the City
Council �fore any contracts are awarded,
Mr. Commers stated this brought them back to the concerns the HRA has ra�-sed
about who is going to pay for tfie maintenance� He s�tated the sooner they can
get these concerns about maintenance addressed, the better,
15. �ISCUSSION OF 1987 FIl�NC�L STATE�'.��1'I':
Discussion on this item was continued until the n�t meeting.
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16 , �QiJE�".I' FOR
AVliLVU�:
-�-.�
Mr. Robertson stated that at ths la,�t meeta:ng, the � I?ad directed st�£� tq
send out 1�'Q's to about a, dozen deyelcjpexs� ]i�, the H1ZA, agend�, pa,cket wa,s �
�.., copy of the letter dated �eptembear 9� 1388e He sta,ted tfiat at this time they
h�ve xecei�ed Qne resppMSe,.
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The HI�A agreed that at, the next meeting, they would give each developer who has
responded to the RFQ an opportunity to speak, limiting ea.ch presentation to
appro�mately five minutes.
17. CI�A7�lS (1796 - 1806) :
MOTION by Ms, Schnabel, secmnded by Mr, �rairie, to approve the �h.eck register
as presented. �
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10 s V�-Lilif.t 17US.J1Yi71�S:
a. Resignation of Samantha Orduno� Mana�e�nent,�ssistant
Mr. Con¢ners stated he was sorry to hear that Sainantlia Orduno is lea.ving
the City of Fridley,_ He stated P4s � Orduno has worlced v�xy closely with
the HRA �or many yeax�s � and they� certainly ap�eciated t�� time and
effort she lias put i11 On nlany pz'ojects � He stat� the HI3P� would like to
m�e sure ttiat scxne. kihd o� recogni�tibn is gi�en to her on behalf of
l,ll@ i.LL�t�, s
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��zor1 by r�x. �r•airie, seconded b�r PRs., �chnab�ls to adjou�n the meeting. Upon
a oice �pte, all voting a,�es Chairperson Cca�unexs declared the September 8, 1988,
Housing & Redevelo�nent l�uthori�ty meeting adj ourn� at 11 s 45 p,3n,
Respectiully submitted,
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