HRA 03/09/1989 - 6394HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
THURSDAY, LARCH 9, 1989
PUBLIC COPY
City of Fridley
A G E N D A
HOUSING & REDEVELOPMENT AUTHORITY MTG. MARCH 9, 1989
7:00 P.M.
Location: Community Education Center
6085 Seventh Street N.E.
CALL TO ORDER:
ROLL CALL:
APPROVAL OF MINUTES: February 9, 1989
INFORMATION ON TANURB PROPOSAL FOR
REDEVELOPMENT OF SOUTHWEST QUADRANT OF
UNIVERSITY AVENUE & MISSISSIPPI STREET. . . . . . . . .
. . 1
INFORMATION OF WINFIELD PROPOSAL FOR
REDEVELOPMENT OF 57TH PLACE . . . . . . . . . . . . . .
. . 2 -2C
CONSIDERATION OF EASEMENTS FOR FRIDLEY
PLAZA OFFICE BUILDING . . . . . . . . . . . . . . . . .
. . 3 -3J
CONSIDERATION OF STINSKI PROPOSAL FOR
REDEVELOPMENT ON HILLWIND ROAD . . . . . . . . . . . . .
. . 4
CONSIDERATION OF BIDS FOR 1989 LAKE POINTE MAINTENANCE.
. . 5 -5A
CONSIDERATION OF UNIVERSITY AVENUE CORRIDOR
IMPROVEMENTS SCHEDULE, AND
a. Merging with Light Rail Transit. . . . . .
6 -6F
b. Costs of Decorative Commercial Lighting. . . .
. . 6G
CLAIMS. . . . . . . .. . . . . . . . . . . . . . . . . .
. . 7
OTHER BUSINESS
ADJOURNMENT
1.
CITY OF FRIDLEY
HOUSING &,REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 9, 1989
CALL TO ORDER:
ROLL CALL:
Members Present: Larry Commers, Virginia Schnabel, Duane Prairie,
Walter Rasmussen
Members Absent: John Meyer
Others Present: Jock Robertson, Executive Director of HRA
William Burns, City Manager & Director of HRA
Dave Newman, HRA Attorney
Rick Pribyl, City Finance Director
Barbara Dacy, Planning Coordinator
Bob Wojciak, Twin City Testing Corp.
Mark Oppen, Twin City Testing Corp.
Jack Lemley, Ashland Oil, Lexington, KY
Joe Commers, The Commers Company
J. E. Brill, Jr., 100 Washington Sq., Mpls.
APPROVAL OF JANUARY 12, 1989. HOUSING & REDEVELOPMENT AUTHORITY
MINUTES•
MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the
January 12, 1989, Housing & Redevelopment Authority minutes as
written.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
CONSIDERATION OF WINFIELD PROPOSAL FOR REDEVELOPMENT OF 57TH PLACE:
Mr. Robertson stated the HRA and Winfield have already reached a
tentative agreement on the basic outline of the development
agreement; however, there is a soil contamination question that
has to be resolved before they can proceed with the consummation
of the development agreement. Staff is recommending that an
independent testing firm, Twin City Testing Corp., be retained to
analyze the soil boring information submitted by Ashland Oil on
this site. He stated staff has been informed by the Ashland Oil
representative that Ashland has also notified the MPCA about the
contamination on the site, and there is a possibility the MPCA has
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HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 9, 1989
some additional information.
Mr. Robertson stated the Commission members had a copy of a letter
dated February.? from Twin City Testing outlining their services.
Twin City Testing will do two things:
1. They will analyze any existing data Ashland Oil has
submitted to the City or that may exist in the State
agency.
2. At such time and only after they have authority to enter
the site, if any additional testing or supplemental con-
firmation of data is required, Twin City Testing will be
authorized to do that.
Mr. Robertson stated Twin City Testing has submitted a scope of
their services. It appears the scope of services of both these
steps can be accomplished for between $2,500- 3,500. Mr. Mark Oppen
from Twin City Testing pointed out that after they have reviewed
the existing data, they would want to modify their proposed scope
of services.
Mr. Newman stated the first step which staff discussed and reviewed
at the joint City Council /HRA meeting a couple of weeks ago was to
hire their own consultant to review the information that is already
available and to get some insight into what is on the site. If
Twin City Testing recommends they need additional soil borings,
staff will contact Ashland Oil to see if they are willing to allow
access to the property. If not, they will have to explore other
available options.
Mr. Oppen stated the first thing they will do is obtain information
on the existing wells to try to find out if a chemical analysis of
the water has been conducted. They will review that information
and then make a decision as to whether further work will be needed.
Mr. Commers asked what Winfield's position was on this.
Mr. Robertson stated it is his understanding that Winfield has
hired their own consultant to look at Ashland Oil's data, but the
HRA deliberately made the decision to hire a separate firm rather
than use the same consultant.
Mr. Commers asked that in terms of the completion of the report,
when Mr. Otten said 2 -4 weeks for completion of the field work,
when will the HRA have a final report of the findings.
Mr. Otten stated the information they presented is based on the
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HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 9, 1989
assumption that they would immediately mobilize to the site and do
some soil borings. Based on the new development that there might
be additional information available, the reasonable things to do
would be to obtain that information and review it. It is possible
they could write a report based on the available information
without doing any field work. In that case, the report will be
available in 2 -4 weeks after the information has been made
available to them.
Mr. Commers stated that if they do have to do some field work, when
could a report be available?
Mr. Oppen stated they can mobilize to the site in approximately 1-
2 weeks to do the field work. If they did the work using on -site
equipment and screened the soils, they could prepare a report
within 2 -4 weeks after the field work, approximately 4 -6 weeks
total.' If they did some chemical analysis of the soil samples at
the HRA's request, then there would be a time period for the
laboratory to complete its analysis which would probably add
another week.
Mr. Robertson stated it is very important that Twin City Testing
have a report available at the next HRA meeting.
Mr. Commers asked if there is any problem with Ashland Oil giving
permission for Twin City Testing to get on the property if it is
necessary.
Mr. Jack Lemley, Ashland Oil, stated the last time he was at the
meeting, he had just found out about this project. Since that
time, he has become informed. He stated he is very upset that the
City is trying to throw Ashland Oil off the property. Rapid Oil
is a good business in the community, and it is not even being
included in the redevelopment. He has furnished Mr. Robertson with
a report. There are some wells on the property. He stated the HRA
wants him to let Twin City Testing on the site in order to kick
Rapid Oil off, and he is very unhappy about this. The HRA says
they do not want a garage in the development. He stated Rapid Oil
is not a garage. It is a good clean business, and it upsets him
and his company that things like this are happening.
Mr. Lemley stated they have drilled three monitoring wells on the
property, and there is in excess of 200 parts per million in the
soil. Things might be worse then they originally anticipated. He
would suggest the HRA back off and let Ashland Oil clean up the
property. They are planning to spend $200,000 to redo this
location.
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HOUSINGS REDEVELOPMENT AUTHORITY MEETING. FEBRUARY 9. 1989
Mr. Lemley stated that as far as letting Twin City Testing onto the
property, he would have to say "no" at this time. He would have
to get clearance through his management if it becomes necessary.
Mr. Lemley introduced his attorney, Jerry Brill.
Mr. Brill stated Ashland oil is in a very difficult position. The
HRA is asking them to sign their own death warrant. They want to
stay in the community, either as part of a redevelopment project,
or on their own. They find it hard to believe that the City finds
this to be a blighted piece of property when they are willing to
spend this kind of money to improve it.
Mr. Brill stated Ashland Oil will take this one step at a time.
The City can certainly approach them if they feel access is needed
to the site, and they will respond as promptly as they can. The
MPCA has been informed of this, so Ashland Oil has been apprised
of their environmental responsibilities.
Mr. Commers stated Mr. Brill's statement to go one step at a time
is good for all of them to consider.
Mr. Lemley stated as he had already said, Ashland Oil is willing
to clean up the property if they are allowed to do so. It is their
property and their environmental responsibility. He certainly did
not mean to shut the door that Ashland Oil will not consider
letting the City onto the property. But, as a representative of
the company at this meeting, he has to say "no" until he can
discuss it with management.
Mr. Burns asked to what extent is the Crosstown Bank location on
the site contingent upon getting the billboard /sign on the Holiday
Plus property.
Mr. Newman stated it was indicated at an earlier meeting that the
sign is extremely important.
Mr. Burns stated he just wondered how realistic the achievement of
the sign permit is. If that is going to determine whether or not
Crosstown Bank goes in on the site, then that should be a
consideration at this meeting. If Crosstown Bank does not get the
billboard /sign, there might not be a project.
Ms. Schnabel stated she raised that particular concern when she
heard that Crosstown Bank wanted a readerboard sign. The City's
Sign Ordinance just does not permit that type of signage. She had
raised the question at the meeting attended by Mr. Dorn, Crosstown
Bank, if they were going to run into problems and was the project
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HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 9, 1989
going to fail without the signage?
Mr. Joe Commers stated he was in attendance at that meeting also,
and it was very clear that Crosstown Bank needed a variance. He
stated he made it clear at the July meeting when his development
team made their proposal that they were not asking for any
variances.
Mr. Joe Commers stated his development team is still very
interested and enthused about the project and working with Ashland
Oil. It is still his conviction that the only way redevelopment
can really happen at 57th Place is if their team or some other team
includes Rapid Oil into the project. They need the cooperation of
Ashland Oil and in order to get that cooperation, Ashland Oil wants
to be included in the project. Things seemed to be rapidly
unraveling from what was discussed at the July and August HRA
meetings, and it is very disconcerting to him. He stated, again,
his development team is very enthused about doing a development
with Ashland Oil, and it is their conviction to stay present until
something has actually happened.
Mr. Commers stated that it seems apparent that in any respect, they
should go ahead with Twin City Testing. It is also apparent that
if there are some potential roadblocks for the bank being a part
of the project, those problems should be resolved as expeditiously
as possible. If the Bank is asking for a variance, he hoped that
can be resolved within the next 30 days.
Ms. Dacy stated Crosstown Bank has applied for a special use permit
for the installation of a billboard and automatic changeable sign.
Staff has completed its review, and the application is being routed
through the various departments. Staff has determined 2 -3
variances will be needed because the sign does not meet the
required setbacks. She stated she is trying to arrange a meeting
with Mr. Dorn to discuss the application.
Ms. Dacy stated that in 1981 Naegele submitted an application for
a billboard on the opposite side of the Holiday Plus site and that
was denied. So, historic factors, as well as ordinance factors,
will have to be taken into consideration. She stated the special
use permit will be heard by the Planning Commission on Feb. 22.
Mr. Newman stated that as Mr. Commers had stated, no matter who the
developer is for the site, a soil report is needed.
MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to approve the
retention of Twin City Testing in accordance with Twin City
Testing's proposal and cost estimate dated February 7, 1989.
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HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 9, 1989
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Mr. Lemley stated there was discussion previously about Rapid oil
relocating onto the car lot property on the south side of
SuperAmerica. He stated he, along with their real estate people,;
have looked at the site and feel it is very inferior to their
present location because of access and the visibility (trees which
block the visibility).
Mr. Commers thanked Mr. Lemley and Mr. Brill for coming to the
meeting. He stated that no matter what happens, they want to get
the pollution problem solved with 'a minimum amount of difficulty.
2. CONSIDERATION OF TANURB PROPOSAL FOR REDEVELOPMENT OF SOUTHWEST
QUADRANT OF UNIVERSITY AVENUE & MISSISSIPPI STREET:
Mr. Robertson stated at the joint HRA /City Council meeting on
January 30, 1989, staff had briefly outlined the Tanurb proposal.
In his memo to the HRA dated Feb. 2, 1989, he had outlined the
proposal in more detail. At this point, they understand that the
representatives of Tanurb are doing their own market investigation
of the site and of the trade area. They are in basic agrement with
the outline of the development agreement being presented to the HRA
at this meeting. The question remains, however, of how soon Tanurb
can complete their market investigations and make a "go /no go"
decision. There is a possibility that because of their obligations
and the purchase options, they might ask the HRA to schedule a
special meeting. Tentatively, that might be in two weeks; however,
the initiative now lies with Tanurb.
Mr. Commers stated there seems to be a number of issues that will
have to be faced and discussed in this project, because it is
entirely different from what they have normally done in the past.
Mr. Newman stated that is correct. Before they ask the HRA to act
on the development agreement, staff will have to provide the HRA
with an indepth financial analysis of the increment that might be
generated, along with other information normally provided to the
HRA. But, that is premature until they get a conceptual agreement.
3. CONSIDERATIONS OF A DRAFT INVESTMENT POLICY:
Mr. Pribyl stated the HRA'had received a copy of the Fridley HRA
Statement of Investment Policy. This Investment Policy has been
reviewed with Mr. Rasmussen.' He stated the Investment Policy
incorporates two different types of guidelines:
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NOOSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 9. 1989
1. State Statute. The State Statute is very encompassing
in what governmental agencies are actually allowed to
invest in.
2. Guidelines are set up by the Governmental Finance
Officers Association.
Mr. Pribyl stated the Investment Policy actually defines the
methodology in which the investing takes place. It also defines
what types of instruments are actually allowable and also the time-
line with maturities, and that is somewhat critical in this
particular situation because of the development process the HRA is
involved in.
Mr. Pribyl stated he would like to thank Mr. Rasmussen for
initiating this particular idea. It is something he felt was
important long ago, and it provides safeguards for, not only the
HRA members, but also himself as Treasurer.
MOTION by Mr. Rasmussen, seconded by Ms. Schnabel, to approve the
Fridley Housing & Redevelopment Authority Statement of Investment
Policy.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Mr. Commers stated he is very satisfied with this Investment Policy
and is glad that one has been done.
Ms. Schnabel and Mr. Prairie agreed.
4. CONSIDERATION OF AGREEMENT BETWEEN CITY OF FRIDLEY AND SCHOOL
DISTRICTS•
Mr. Commers stated this was discussed again at the joint City
Council /HRa meeting which he had not been able to attend. He had
voiced to Mr. Pribyl and Mr. Robertson his questions about the
ultimate agreement. He stated he feels the HRA should do as much
as they can for the school districts; however, he does see some
problems regarding the availability of funds and what might happen.
He stated he had no problem with the HRA approving the agreements
and passing them on to the City Council.
MOTION by Mr. Rasmussen, seconded by Ms. Schnabel, to approve the
draft agreements presented by Jim O'Meara and pass them on to the
City Council and then to the School Districts for their
authorization.
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HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 9, 1989
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COM14ERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
5. INFORMATION ON LRT DEVELOPMENT:
Ms. Dacy stated Anoka County has joined forces with Hennepin County
to investigate the LRT for an overall system in the metropolitan
area. Anoka County has established three committees of which the
City Council has appointed three representatives: Steve Billings,
Intergovernmental Committee; John Flora, Technical Advisory
Committee; Scott Lund, Corridor Advisory Committee. These
committees are coming to decision making points about what type of
"philosophy" the LRT should take in Anoka County. The philosophy
debate is between a commuter route versus an urban route. Included
in the HRA agenda (page 5 -A) were definitions of the two
philosophies. She stated, basically, the commuter philosophy is
one where a rider boards the LRT at Northtown and travels to
downtown Minneapolis with as few stops as possible, minimizing the
travel time to downtown Minneapolis. The urban philosophy has more
stops along the corridor providing more access for developments at
the station locations or neighborhoods in and around the area to
use LRT.
Ms. Dacy stated in Attachment #3, there is a comparison of travel
times. She stated the preferred LRT route will start at Northtown,
run south along the east side of University Avenue to 1-694, go
east along I -694 either on the north or south side to
Central /Highway 65, and then south on Central Avenue to downtown
Minneapolis. This is the preferred route of the three committees
as of this date. The ultimate decision making authority will be
the Anoka County Railroad Authority which in essence is the Anoka
County Board.
Ms. Dacy stated there is some uncertainty as to whether MnDOT will
approve the LRT within the I -694 right -of -way; and if not, the
optional route is to have a crossover along 73rd Avenue to Highway
65.
Ms. Dacy stated a number of criteria is being looked at in trying
to determine which route is the best: travel time, which route
minimizes the most land use impacts, which route requires the least
amount of acquisition, and which route generates the most
ridership.
Ms. Dacy stated it appears that north of I -694, the University
Avenue route would have the least amount of impact along the right -
of -way and have the most riders. South of I -694, it seems that
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HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 9, 1989
Central Avenue has those benefits. There is still some seesawing
at this time, and the type of philosophy the communities recommend
is going to be a factor in the route decision.
Mr. Commers asked how the LRT will affect the University Avenue
Corridor plan.
Mr. Robertson stated it is compatible with the University Avenue
Corridor plan. Examples of other LRT installations feature
extensive landscaping, lighting, and pedestrian improvements. He
stated they have also checked with Barton - Aschman, and Barton -
Aschman agrees.
Ms. Dacy stated that with the commuter philosophy, three stations
are being proposed at the following locations in Fridley: Columbia
Arena, Mississippi Street, and 57th Avenue. With the urban
philosophy, the following station locations are proposed in
Fridley: 81st Avenue, Osborne Road, and possibly one at 53rd
Avenue (if the LRT crosses over to Highway 65).
Ms. Dacy stated she would like to talk about the station locations
because they can affect some of the upcoming projects the HRA will
be dealing with. For example, at 57th Avenue, a station location
is proposed in the immediate area between the Rapid Oil building
and the University Avenue Corridor and that would provide parking
for 44 cars. They are also looking at a park and ride facility in
the southwest corner of University /I -694 next to The Cattle
Company.
Ms. Dacy stated that at their February 8th meeting, the Planning
Commission said they would like all the park and ride facilities
located on the same side of the right -of -way as the LRT stations.
At this particular intersection, they are aware in concept of the
possible redevelopment. Their suggestion was to encourage Anoka
County to take the used car lot for parking. They wanted the HRA
to be aware that this particular site is being looked at as a
station location; and maybe through negotiations, accommodations
can be made on the site plan for some park and ride facility.
Ms. Dacy stated the Planning Commission is equally concerned with
the impact on the University Avenue Corridor project and made a
statement that a lot of attention must be paid to landscaping,
screening, and lighting. Their concern is that the location of the
parking area is literally !'on top" of traffic lanes and maybe there
should be more separation between the street and the LRT tracks.
Ms. Dacy stated the LRT would be at grade, and it would have its
own exclusive right -of -way. It will be able to override traffic
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HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 9, 1989
signals on University Avenue. It will be a two track system with
three cars, one driver, with a capacity of 500 people.
Mr. Rasmussen asked about the timetable.
Ms. Dacy stated the preliminary engineering phase is going to take
1 -1 1/2 years to complete, then funds must be acquired, so they
are looking at 2 -5 years before the system is implemented.
Ms. Schnabel asked if the used car lot became a park and ride
facility, would the station location have to be there too?
Ms. Dacy stated it did not have to be located there. It could be
a "walk -up "- -just a platform on a concrete slab. So, the actual
station might just be a glorified bus shelter. She stated the
advantage of a parking facility and a station at this location is
the closeness to I -694 for people coming from the east and west who
could park and the ride the LRT downtown.
Ms. Schnabel stated a statement has been made recently that there
is more traffic between suburbs than there is between suburbs and
the core city. This LRT system will not really address that
situation; it will basically get people in and out of downtown
Minneapolis.
Ms. Dacy stated the consultants from Anoka County admit that,
initially, through the Anoka County route, this route will connect
to the Hennepin County system. Hennepin County proposes to build
four lines at once to try and build on a radial approach to the
metropolitan area so eventually a person starting at Northtown can
get to the airport or the Megamall or the Hopkins area. They will
admit this will not provide the alternative means or access for
someone from Fridley to get to Maplewood, for example. The
majority of the ridership (800) will be using the facility for
commuter trains.
Ms. Dacy stated another park and ride facility is being proposed
on the north side of 10,000 Auto Parts store. They have found from
other cities that have LRT that LRT does tend to increase retail
sales per square foot of existing development. So, it could be an
enhancement to existing businesses in Fridley.
Ms. Dacy stated that as far as the Columbia Arena site, the
Planning Commission has a lot of concerns about having a station
there for three reasons: (1) the lack of direct access into 71st
Avenue and the rather circuitous access into the facility; (2) no
east /west direct link from Highway 65; (3) a park and ride facility
had been looked at for 71st Avenue, but this has been approved for
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6.
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HOUSING A REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 9, 1989
an industrial subdivision. The Planning Commission wanted the
consultant to look at Osborne Road as a commuter station, rather
than Columbia Arena.
Ms. Dacy stated it is the Planning Commission feeling that the
parking at Immanual Christian Center located near Osborne Road and
University Avenue is underutilized and maybe this could be a
potential site for investigation for a park and ride facility.
Ms. Dacy stated the Planning Commission feels a commuter station
should be at Osborne Road, Mississippi Street, 57th Avenue, and
they do not feel there should be a station location at the Lake
Pointe site if the route goes along I -694. They feel that if there
is sufficient area at 57th to provide adequate parking, because
Lake Pointe is in such close proximity, that could serve as an
access for any potential Lake Pointe development.
Ms. Dacy stated the Planning Commission is more in favor of the
commuter philosophy. If the urban philosophy is chosen, they can
live with it; but they wanted the stations on the east side of the
right -of -way, adequate landscaping, and that the bikeway /walkways
be left in place.
Ms. Schnabel stated that even if there is a station location at
57th Avenue, it might be more convenient for employees from Lake
Pointe to have a station at Lake Pointe.
Ms. Dacy stated another reason the Planning Commission thought a
station at Lake Pointe might not be necessary is because some
companies provide shuttle bus services, and maybe this could be
implemented in this situation.
INFORMATION ON FRIDLEY PLAZA OFFICE BUILDING:
Mr. Robertson stated that at the January meeting, he was asked
about the amount of rent billed to the HRA for the office building
in the amount of $3,209.56, and Mr. Pribyl had confirmed that was
for monthly rent for the office building.
Mr. Robertson stated that as they went to press with this agenda,
they understood that the closing for the sale of the Fridley Plaza
Office Building was imminent.
Mr. Newman stated the closing will probably be Feb. 15 -16.
CLAIMS (1857- 1864):
MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the
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HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 9, 1989
check register as presented.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Mr. Pribyl stated he had included information on the total amount
of billing on behalf of the City personnel that also double as HRA
personnel. This is based on a request made by the HRA last year.
The total cost of personal services is $106,820.12 for the year
1988.
OTHER BUSINESS•
a. Brickner Proposal, Old Central Avenue (memo from Jock
Robertson dated Jan. S. 1989)
Mt. Robertson sated this was for the HRA's information. He
stated Mr. Brickner will have a neighborhood meeting, and the
City Council has requested no action be taken by the HRA until
they see the results of that meeting.
Mr. Commers stated he would like something from the City
Council that tells the HRA why they should approve Mr.
Brickner's project when other projects have been put on hold
pending the senior housing study. Mr. Brickner's project is
obviously an excellent project, and he has done a lot for the
City of Fridley and they should help him, but it is still a
fact that they have to treat these developers fairly.
b. Old Cub Foods Site
Mr. Burns stated another Canadian developer, Southam
Corporation, out of Winnipeg, is interested in developing the
Cub Foods site for a six - theatre movie house plus some retail.
They are not asking for any tax increment financing. Staff
has told them about the Tanurb site, and they would be
interested in that site if the Tanurb project does not go.
Mr. Burns stated he has asked Mr. Robertson to prepare a 1990
budget for the HRA, and he hoped this is agreeable with the
HRA.
The Commissioners concurred with having a budget prepared.
c. University Avenue Corridor Project
Mr. Burns stated he has never had the benefit of any
discussions regarding the University Avenue Corridor. He has
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HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 9, 1989
asked Mr. Robertson and Mr. Flora to review the project for
the City Council after their March 6th meeting. He stated
they are due to go out for bids in April, and he wanted to
know if the HRA supported this project.
Mr. Commers stated the HRA has certainly supported and
approved of the University Avenue Corridor project.
Mr. Commers stated that Ms. Schnabel chaired the Technical
Advisory Committee that put the project together, and she
would be an excellent resource person.
Mr. Robertson stated he is preparing a summary of key
decisions and dates for Mr. Burns to be used as a review
document.
Mr. Commers stated one of the biggest issues that has been a
negative for the HRA is the maintenance and who pays for the
maintenance.
Ms. Schnabel stated a concern she had is that having waited
two years to get the project off the ground once the
commitment was made, the cost might be in error now.
ADJOURNMENT:
MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to adjourn the
meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE FEBRUARY 9, 1989, HOUSING & REDEVELOPMENT AUTHORITY
MEETING ADJOURNED AT 9:10 P.M.
Res ectfully submitted,
Aiza-
Lynrib Saba
Recording Secretary
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OUSING and REDEVELOPMENT AUTHORITY
COMMISSION MEMBERS:
1
LAWRENCE COMMERS, CHAIRMAN
DUANE PRAAE V1RG1 IA SCHNABEL WALTER RASMUSSEN JOHN MEYER
CITY OF FRIDLEY
DATE: March 1, 1989
TO: Housing & Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: Information on Tanurb Proposal for
Redevelopment of Southwest Quadrant
We received word by telephone late Tuesday evening that Tom Ehrlich
of the Tanurb Corporation has decided not to proceed with the
proposed redevelopment of the subject site. As we go to press, we
are awaiting a letter of confirmation from Edward Chanin, Tanurb's
legal representative.
We will follow -up on this as soon as we receive additional
information and prepare a full report for the HRA at the April
meeting.
JR /dn
M -89 -109
EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 571 -3450
FRIDLEY, MN 55432 EXT. 117
IOUSING and REDEVELOPMENT AUTHOR[TY
2
COMMISSION MEMBERS: LAWRENCE COMMERS, CHAUtMAN
DUANE PRARE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER
CITY OF FRIDLEY
DATE: February 28, 19889
TO: Housing & Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
Barbara Dacy, Planning Coordinator
SUBJECT: Status of Winfield Development Proposal
for 57th Place Redevelopment
Soil Evaluation
Twin City Testing notified us that they did not want to execute the
contract authorized by the HRA on February 21, 1989 because Ashland
Oil is a major client of Twin City Testing. Twin City Testing
determined that the contract would constitute a conflict of
interest (see attached letter).
Mark Oppen from Twin City Testing recommended we contact the
Minnesota Pollution Control Agency to obtain the information that
the City requested. The representative from the MPCA, Rob Goltz,
advised that the MPCA would, within the next 4 -6 months, complete
its investigation and at that time make a recommendation as to how
the site should be cleaned. He stated the MPCA will share the
results of its investigation and provide us copies of its
interpretation and recommendations. He stated that the City should
expect an additional six months in order to complete the clean -up
activities.
Dennis Flaherty, the original property owner, is responsible for.
the cleanup. Mr. Flaherty has an agreement with Ashland Oil
Company to do the cleanup; however, according to the MPCA, 'Mr.
Flaherty is the responsible party. Mr. Goltz was of the opinion
that the City would not be liable for any cleanup if we were to
acquire the property.
Mr. Flaherty is submitting the necessary documents to the MPCA to
satisfy requirements to - receive reimbursement of up to 75% of the
cleanup costs. The maximum reimbursement is $100,000, and the
first $10,000 must be paid by the responsible party. The
reimbursement is authorized by Federal Law and is administered
through the State Board of Commerce.
EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (e 12) 571-3450
FRIDLEY. MN 55432 EXT. 117
2 -A
Status of Winfield Development Proposal for
57th Place Redevelopment
March 1, 1989
Page 2
Billboard Polic
The Crosstown Bank has filed an application to construct a bill-
board (with an electronic changeable message) to be located on the
Holiday Plus site on the northwest quadrant of I -694 and University
Avenue. The City Attorney's office had determined that setback and
spacing variances would be required. The application raises
concern about the City's billboard policy.
We are concerned about the location of this billboard in terms of
its compatibility with the University Avenue Corridor project.
Further, while it is related to the 57th Place Redevelopment
(Crosstown Bank), its appearance as an automatic changeable
electronic sign may be distracting and unappealing to the travel-
ing motorist.
The Naegele Outdoor Advertising Billboard Company which currently
owns all the billboards in the City at this time will be watching
this application closely. The City's determination on this request
may affect future requests on existing and new billboards.
City Council Policy on Auto - Oriented Uses
Vantage Companies proposed a change in the language of the Develop-
ment Agreement between the City of Fridley and the Vantage
Companies. This item appeared on, the City Council agenda on
February 27, 1989.
Section 4.4 of the Development Agreement dated March 17, 1986,
states: "Uses. It is agreed that on the Southeast Parcel there
shall not be located or constructed any business or building that
engages in automotive or motor vehicle repairs or services, or that
sells gasoline, fuels or motor vehicle parts."
Vantage Companies proposed a 9,200 square foot shopping center on
the 1.41 acre parcel located in the immediate northwest corner of
81st Avenue and University Avenue. A Texaco "C" store with gas
pumps would occupy 2,600 square feet of the Center. The proposed
Texaco convenience store represents the type of use the Council
intended to prevent. The reasoning was that this type of activity
is less desirable in exterior appearance due to the presence of
pumps, refuse containers, outside canopies and the outside display
of merchandise.
The Council tabled the proposal indefinitely.
BD:ls
M -89 -108
2 -B
o twin city testinq
corporation
662 CROMWELL AVENUE
ST. PAUL. MN 55114
PHONE 6121645.3601
February 15, 1989
City of Fridley
Housing and Redevelopment Authority
6431 University Avenue NE
Fridley, MN 55432
Attn: Ms Barb Dacy
Subj: Cost Estimate /Proposal Letter
dated February 7, 1989
Rapid Oil Change Site
57th Street and University Avenue
Fridley, Minnesota
On Thursday, February 9, 1989, Mark Oppen and I attended the meeting of the
Housing and Redevelopment Board to discuss the cost estimate /proposal which
Twin City Testing Corporation (TCT) submitted to you in a letter dated
February 7, 1989.
It was our understanding at the time of preparing the proposal that a
limited number of soil brings had been done at the site and that the City of
Fridley was requesting additional soil borings by TCT to assess the site
conditions further. We were not aware until attending the meeting that
Ashland Oil Company was the owner of the site and was currently undertaking
a site assessment under the direction of the Minnesota Pollution Control
Agency (MPCA)
Ashland Oil Company is a client of TCT and we have performed work at
numerous Superamerica stations. Because of TCT's status as a consultant to
Ashland Oil Company, we believe it may be conflict of interest to work on
this site.
AN EQUAL OPPORTUNITY EMPLOYER
2 =C
City of Fridley
February 15, 1989
Page Two
We regret that we will have to withdraw our proposal to work on this site
and apologize for any inconvenience this may cause you. We believe that the
MPCA may be helpful in providing information currently available about the
site and we suggest that you contact them for information.
The MPCA contact is Mr Rob Goltz and he can be contacted at (612) 20X -2327.
We have worked with the MPCA on several sites and we are confident that
their review of Delta Environmental's work to date will be thorough. When
you contact Mr Goltz please inform him of the monitoring wells at the site.
If he does not have this information he would be in a better position than
either the City of Fridley or TCT to obtain this information from Ashland or
Delta Environmental.
If you wish to discuss this further, please don't hesitate to contact me at
641 -9362 or Mark Oppen at 649 -5580.
Very truly yours
Twin City Testing Corporation
Robert A Wojciak
Manager /UST Program
llx4ov�-
Mark Oppen
Project Manager
MO /jk
H R C K & Nj��1� T N
ATTORNEYS AT LAW
Virgil C. Herrick
David P. Newman M E M O R A N D U M
James D. Hoeft
Gregg V. Herrick
To: Jock Robertson
Executive Director
From: David P. Newman
Assistant City At orney
Date: February 28, 1989
Re: Fridley Plaza Office Building
As of the date of this memo, the closing has not yet occurred
for the sale of the Fridley Plaza Office Building. However, the
activity leading up to the closing has been quick and furious
over the last week or so and it is my understanding that with the
possible exception of one or two remaining items that the closing
will occur in the near future. However, in the course of the
buyer preparing their title work there are certain issues which
have been raised and which I would ask you to review with the HRA
at their next meeting.
(a) Attached you will find an outline of the building and
the adjoining parking area. While the owners of the
building do have a lease over the parking area, they
do not have specific access. Consequently, they have
asked for an access easement across that portion of
the parking lot whic'n is immediately east of the office
building. This area is high - lighted in blue.
(b) In addition, a certain portion of the sidewalk area
following the east and west side of the building lies
outside of the boundaries of Lot 14. Consequently,
they have also asked for a landscaping and sidewalk
easement over these areas. This area is high - lighted
in yellow.
(c) Finally, there are certain utility lines which run
from the public right -of -way, across HRA property and
then to the office building. They have asked the HRA
to grant to them an easement for these utilities.
These areas are high- lighted in green.
Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612- 571 -3850
3 -A
As you know, we have previously discussed these items and
based on your concurrence that we should be granting these
easements, on February 22, 1989 you executed a Letter of
Undertaking to Performance Investments in which you indicated
that you would strongly encourage the HRA to grant these easements.
I believe that the request by the property owners for these
easements is reasonable so as to provide them with adequate
access and title to the surrounding property. The property
owners have not yet had a legal description prepared for the
utilities, but the descriptions for those utilities will be
forthcoming.
An additional problem which has surfaced pertains to the
parking lot. Attached you will find a copy of a memorandum which
I submitted to the City Manager on this issue. I believe this
memorandum is self - explanatory and outlines the problems. By the
time you have held this HRA meeting you will be aware of what
direction the Council took at their March 6, 1989 council
meeting. For your convenience, I have high - lighted the parking
area in pink on the attached exhibit.
Under the terms of the initial bonds, the issuer (the HRA)
is required to provide to the trustee an opinion of counsel that
"all conditions precedent to the satisfaction and discharge of
this indenture, the mortgage, and the assignment have been
fulfilled." For a variety of reasons I feel uncomfortable and
unqualified in issuing this opinion. Unfortunately, neither the
sellers or the trustee advised me of this opinion until Thursday,
February 23, 1989. On Monday, February 27, 1989, I asked
Mr. Rent Richey of Leonard, Street and Dienard to act as special
bond counsel to the HRA for purposes of issuing this opinion. I
explained to the sellers that it is the practice of the HRA to
charge the seller for the cost of obtaining this opinion.
Mr. Richey gave me a preliminary indication prior to reviewing
any of the documents, that he thought that the cost of this
opinion should not exceed $1,500.00.
It was necessary for us to obtain special bond counsel due to
the fact that Briggs and Morgan represents the trustee so
Mr. O'Meara could not serve in rendering this opinion. I selected
Mr. Richey due to the fact that he is highly respected in this
area and also due to the fact that he has worked with the City of
Fridley in the past when he was with the law firm of O'Connor &
Hannan.
One final item is the sixty (60) day deadline that the HRA
adopted at their January 12, 1989 meeting. At that meeting you
will recall that they authorized the staff to execute the
documents necessary to subordinate their mortgage and to consent
to an assignment of the lease providing that the closing occurred
within sixty (60) days. My guess is that the closing may not
occur within this time period. If this is the case part of the
delay may be attributable to the easement problems which we
discussed above as well as the need to obtain the opinion of bond
3 -B
counsel. Due to the fact that it could at least be argued that
the HRA has contributed to this most recent delay and further due
to the fact that the sellers appear to be making a serious and
sincere effort to close in a timely manner, I would request the
HRA to extend this deadline an additional thirty (30) days.
Enclosed for your reference is a draft resolution which you
may wish to have the HRA consider at their March 9, 1989 meeting.
17 3
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3 -D
BRA RESOLUTION NO. - 1989
RESOLUTION
WHEREAS, the owners of the Fridley Plaza Office Building wish
to convey their building and in the course of reviewing the title
work it appears that certain easements are necessary in order to
provide the sellers with good title to the property, and
WHEREAS, the BRA owns the property adjoining the site
occupied by the Fridley Plaza Office Building and wishes to
cooperate with the owners of the Fridley Plaza Office Building in
granting to them the necessary easements.
NOW, THEREFORE, BE IT RESOLVED:
1. That the BRA and its staff are hereby authorized to
execute the following easements to the owners of the
Fridley Plaza Office Building or their successors in
=interest:
(a) An ingress /egress easement over that portion of
the parking area immediately east of the Fridley
Plaza Office Building.
(b) A sidewalk easement and landscaping easement over
those areas immediately adjacent to the Fridley
Plaza Office Building and which lie on the east
side of the building and the west side of the
building.
(c) Utility easements based on legal descriptions
which are to be prepared by a licensed surveyor
and which are to be provided by the building
owner.
2. That the execution of these easements shall be subject
to approval by the BRA attorney and verified by the Public Works
Depatment of the City of Fridley.
3. That the staff of the BRA is authorized to continue to
work with the owners of the Fridley Plaza Office Building until
April 13, 1989 for purposes of assisting them with their sale and
for purposes of executing any and all documents which are
consistent with those approvals which the BRA has previously
granted.
(2/28/89 RES4 -H &N)
HERRICK & NEWMAN PA. 3-E
ATTORNEYS AT LAW
Virgil C. Herrick
David P. Newman
James D. Hoek
Gregg V. Herrick
William Burns
City Manager
City of Fridley
6401 University Avenue
Fridley, MN 55432
February 28, 1989
RE: Fridley Plaza Office Building
Dear Mr. Burns:
As you are aware, the owners of the Fridley Plaza Office
Building are in the process of selling this building. In the
course of preparing for the closing a title issue has arisen.
The HRA has previously entered into a long term lease of the
adjoining parking facilities to the owners of the Fridley Plaza
Office Building. This lease was originally entered into on
September 28, 1982. In September, 1988 an amendment was entered
into due to the decision by the HRA to construct a structured
parking facility on this site. Among the amendments was to
extend the term of the original lease to 99 years.It has now come
to our attention that in fact the HRA only owns the eastern
portion of this parking facility and that the balance of it is
owned by the City of Fridley. This presents two (2) problems.
First of all, the HRA cannot lease property to which it is not
the owner. Secondly, the HRA is constructing a parking structure
on property.which it does not technically own.
Enclosed you will find a letter from Minnesota Title
outlining the problem. I have also enclosed a copy of the plat
in which I outlined in green the approximate area of the parking
facility which continues to be owned by the City of Fridley.
Due to the fact that closing is eminent on the building and
further due to the fact that seven (7) years ago the HRA entered
into a lease in which they agreed to lease this parking facility
to the owners of the adjoining building, I did enter into a
Letter of Undertaking with Minnesota Title in which I represented
to them that the HRA and the City would take the necessary steps
so as to provide the owners of the building with a valid lease
over the entire parking area.
There are three (3) options which the City may wish to
consider. I have ranked these options in order of recommendation
with the first option being the approach which our office would
most strongly recommend:
Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612 -571 -3850
3 -F
William Burns
February 28, 1989
Page Two
1. The City of Fridley would quit claim deed to the BRA
that portion of Lot 7 which I have outlined in the
attachment. (You will note that Lot 7 continues
westerly along the north side of City Hall. Title
to this portion of the property would continue in
the name of the City.) This quit claim deed would
reserve to the City non - exclusive access for parking,
ingress and egress. Under the City Charter the City
can only convey property after the adoption of an
Ordinance. Consequently, I have taken the liberty
of preparing a draft Ordinance.
2. The City could lease the subject property to the BRA
with the express understanding that the BRA would
then be permitted to enter into a sublease with the
owners of the Fridley Plaza Office Building. This
lease would have to be of a duration not less than
the term of the lease to the owners of the building
(99 years). This lease would also have to include
authority for the BRA to construct the structured
parking facility on the subject property. Because
this lease would need to be for such an extended
period of time, it is our recommendation that a
quit claim deed might be a cleaner way to handle
this transaction.
3. A third option would be for the City Council to
jointly enter into the parking lot lease with the
BRA and the owners of the Fridley Plaza Office
Building. However, a separate agreement would
still need to be entered into wherein the City
Council would authorize the BRA to construct the
structured parking facility on the subject property.
As I explained to you earlier, I am at a loss to understand
how this problem originally arose. Since our office was only
peripherally involved in the development of the Fridley Plaza
Office Building, our files do not contain any information on this
item. However, it has always been the understanding of our
office as well as Jock's understanding that the intent was for
the BRA to own and maintain the parking facility. This is
consistent with the approach that Nasim took over a year ago in
requesting the BRA to pay for this parking facility. It is also
consistent with the discussion that occurred several years ago in
which the owners of the office building were arguing that there
were inadequate parking spaces contained within the parking site
and the BRA agreed to increase the number of parking spots.
William Burns
February 28, 1989
Page Three
I recognize that I have taken some liberties in indicating to
the title company that the City would take the necessary steps in
resolving this matter without explicit council approval.
However, I am confident that the City will take the steps
necessary in order to be able to fully perform the obligations
which it has entered into.
I would ask you to place this matter on the agenda for the
March 6, 1989 City Council meeting. If I can provide you with
any additional information, please do not hesitate to contact me.
SinceriP. y yours,
avid N wman
DPN:jeb
Enclosures
3 -G
3 -H
ORDINANCE NO. - 1989
AN ORDINANCE PROVIDING
FOR THE SALE OF REAL PROPERTY
The City Council of the City of Fridley does ordain as follows:
Section 1.
That the City of Fridley is hereby authorized to convey to the
Fridley Housing and Redevelopment Authority the following
described property to wit:
That part of Lot 7, Block 1, Fridley Plaza Center,
Anoka County, Minnesota lying southeasterly and easterly
of the east line of Lot 8 and its extension northerly
to the north line of said Lot 7, in said Block 1,
Fridley Plaza Center.
Subject to a permanent non - exclusive easement for
parking ingress and egress.
Section 2.
That in conjunction with the granting of this deed the City
further waives pursuant to Section 211.05 of the City Code, any
requirements for subdivision approval, due to the fact that this
conveyance is consistent with the overall plan for the development
of this area and was tacitly approved by the City in 1982.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY
THIS DAY OF , 1989.
WILLIAM J. NEE, MAYOR
ATTEST:
A.
SHIRLEY A. HAAPALA, CITY CLERK
Public Hearing:
First Reading:
Second Reading:
Publications:
(ORDINANCE /H &N 2- 27 -89)
MI. NESOTA
ITLE
February 23, 1989
Mr. David Newman
Herrick & Newman
6401 University Avenue, N.E.
Fridley, Minnesota 55432
Res Parking VA" Lease
Dear Dave:
3 -1
11375 �WAM eomp.nt, d.Yimaai.
�1ASm 0rive� Suiw 200
ton► RWs. Walsou 55433
812/754 2610
_ FAX 612/764 2813
�G't Mim�� 55001
This letter is to inform you that after a search of the records of the County Recorder,
I find that the majority of Lot 7, Block 1, Fridley Plaza Center is owned by the City
of.FJridiey as evid.&nced by Document Mon. 230199 and 268082, copies of which are attach-
ed. I am also enclosing a copy of the portion of the plat of pridlOf Plaza Center that
shows the uaderlyiM6 legal description recited on the two deeds.
In order to complete the transacti�—that is scheduled to close on February
wherein the City of Fridley Housing 6 Redevelopment Authorit to create 2k, 1989,
leasehold interest in Performance Investments, a Partnerships we must shavea deed from
the City of Fridley co the City of Fridley Housing b Redevelopment Authority which des-
cribes the property as that part of Lot 72 Block 1, Fridley Plaza Center, Anoka County,
Minnesota, lying southeasterly and easterly of the east line of lot 8 and its Extension
northerly to the north Line of said lot 7, in said Block 1, Fridley plaza Center.
the deed will need a subdivision stamp from the City approving Also,
attempted to contact the Anoka e Y PP ing the split of lot 7. I
Fridley Plaza Center is ex County 1Ybuturer s office-to confirm that Lot 7, Block 1,
exempt property but
try again later this morning, was told the computers were down. I will
If you need any further Information, let as know.
Sincerely,
!large iCotzer
Asti. Dice President /Manager
Mit:vm
Att.
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IOUSING and REDEVELOPMENT AUTHORITY
COMMISSION MEMBERS:
4
LAWRENCE COMMERS, CHAIRMAN
DUANE PRARE VEGNIA SCHNABEL WALTER RASMUSSEN JOHN MEYER
CITY OF FRIDLEY
DATE: March 3, 1989
TO: Housing and Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: Stinski Office Proposal
New financial data on this project was not submitted to us until
Monday, February 27. As a result, staff has not had sufficient
time to analyze the proposal to make a recommendation for the HRA
agenda distribution on March 3rd.
I strongly recommend that consideration of this project be set for
the April 13th HRA agenda.
JR:ls
M -89 -117
EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 571 -3450
FRIDLEY$ MN 55432 EXT. 117
iF
_ 5
MEMORANDUM
DATE: March 2, 1989
TO: Jock Robertson, Community Development Director
FROM: Jon Thompson, Construction Inspector & Estimator
SUBJECT: Lake Pointe Development Maintenance Project #187
Bids were received for the Lake Pointe Development Maintenance
Project #187 on Thursday, March 2, 1989, at 11:00 a.m.
The apparent low bidder is Greenmasters, Inc., with a total bid of
$34,220.00.
The Public Works Department recommends that the HRA and City
Council award Project #187 to Greenmasters, Inc.
JT:ls
CFTYOF
FWDLEY
�l
BID PROPOSALS FOR
5 -q
LAKE POINTE DEVELOPMENT
MAINTENANCE PROJECT NO. 187
THURSDAY, MARCH 2, 1989 11:00 A.M.
PLANHOLDER
BID
BOND
TOTAL
BID
COMMENTS
Germundsen Companies
20142 - 156th St. No.
Elk River, MN 55330
-?jss i
b3 '
Oo_
Greenmasters, Inc.
Waterford Park
505 Highway #169 N.
Plymouth, MN 55441
pD
--
p v
Austin P. Keller Co.
481 Front Ave.
St. Paul, MN 55117
J.T. Noonan Co.
3601 -48th Ave.; N.
Brooklyn Ctr., MN 55429
o v
C;LD65
4
4 i 30D
Talberg Lawn & Landscape
100 Wilshire Drive
Minnetonka, Mn 553431
���
Co
OUSING and REDEVELOPMENT AUTHORITY
6
COMMISSION MEMBERS: . LAWRENCE COMMERS, CHAIRMAN
DUANE PRAIRIE VIRGINIA SCHNABEL WADER RASMUSSEN JOHN MEYER
CITY OF FRIDLEY
DATE: February 28, 1989
TO: Housing & Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: Summary to Date of University Avenue Corridor
Planning (See attached chronological summary)
In the spring of 1986, the Fridley HRA retained a consultant to
prepare a plan for improving the appearance and business climate
along University Avenue. The plan addresses concerns expressed by
citizens and business people about the general unkempt appearance
of the Corridor, the unsightly condition of the chain link fence
south of 69th Avenue and the rural ditches north of 69th Avenue.
Citizens also were concerned about the general lack of visual order
and the lack of pedestrian facilities such as sidewalks, bus
shelters, and crosswalks. The consultant, Barton - Aschman and
Associates, worked with the citizen Technical Advisory Committee
and the staff over the summer of 1986. After review and
suggestions by the HRA, City Council and Planning Commission, the
consultant completed the draft master plan in October of 1986.
During the month of November, the draft plan was reviewed by all
City departments for detail additions and to eliminate any
potential conflicts. A staff addendum including a maintenance
budget and a three -phase implementation schedule was prepared and
presented to the HRA at the December 11, 1986, meeting. The City
Council also attended that meeting; and after a rather thorough
discussion by both the Council and the HRA, the HRA adopted the
plan with its amendments with an overall budget of $1,431,000.00
(see attached budget). The Planning Commission subsequently
reviewed both the amended plan and the HRA action and adopted both
at its regular meeting.on January 7, 1987.
The overall goal of the Corridor plan is to keep Fridley
competitive with other suburbs in the metropolitan area.
Recognizing a diversifying regional economy, the plan provides an
attractive community entrance and surroundings for new and exist-
ing businesses. Attracting private investment dollars obviously
in turn will generate additional property tax revenue. The plan
does this in three ways:
EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 671 -3460
FRIDLEY, MN 55432 EXT. 117
• �1
Summary to Date of University Avenue Corridor Planning
February 28, 1989
Page 2
1. Providing planting and screening for a more groomed
appearance and year round color.
2. Improving intersections with paving, crosswalks, curbing,
handicapped access, and bus shelters.
3. Installing street lighting at intersections and
attractive special lighting fixtures along commercial
service roads that will establish a level of safety and
attractiveness and a special "Fridley look" along the
entire Corridor.
Phase I of the three -phase implementation program involves an
"urban" demonstration section from 57th to 61st, and a "rural"
demonstration section from 73rd to Osborne. At the December 11,
1986, meeting, the HRA directed the staff to accelerate completion
of Phase I as much as possible to coincide with the 1988 deadline
for expenditure of bond proceeds. In order to accomplish this, the
HRA retained Barton - Aschman to prepare these detailed implementa-
tion plans.
The next step was to prepare detailed plans for installing the
above elements in each of the unique Corridor sections. These
detailed plans involved three components:
1. Large scale base maps
2. working drawings
3. Specification sheets
During 1987, the process was delayed while the HRA considered wild
prairie flowers and grasses as an alternate low maintenance median
treatment. After considerable study, the concept was rejected as
incompatible with the appearance goals of the master plan. The
project was delayed again in 1988 while traffic signals were added
and decorative lighting alternatives evaluated. The detailed Phase
I plans have now been completed and in January 1989 were forwarded
to MnDOT for review and approval. A rough cost estimate is
$700,000.
Questions were raised during the 1988 County LRT study about
compatibility with proposed Corridor improvements. The examples
of other LRT installations being studied all feature extensive
landscaping, lighting, and pedestrian improvements of the type
proposed in the master plan. Barton - Aschman and the staff are
Summary to Date of University Avenue Corridor Planning
February 28, 1989
Page 3
confident that LRT is basically compatible with the Corridor Master
Plan. However,-plant materials, right -of -way, signals, walkways,
and bus stops would be rearranged to accommodate the tracks and
train stops. Timing is critical. If the County decides to proceed
with LRT within the next three to five years, the affected portions
or all of the Phase I construction may have to be omitted in 1989
and redesigned for LRT installation. On the other hand, if LRT is
still a long way down the track, the Phase I benefits could be
enjoyed and amortized before the train arrives.
At this time our estimated schedule for finishing Phase I without
LRT is as follows:
Completion of MnDOT review - six to eight weeks
Bid letting - early to mid April 1989
Commencement of signal work and paving - early May 1989
Commencement of landscaping - summer 1989
Finalization of Phase I project implementation - fall 1989
JR:ls
Attachments
M -89 -110
6
A
�'. : 11'•' 11' '
6 -c
December 11, 1986
WAY?
a
-CITIZEN CoNCERn!$:
- UVKEPT CONDITION
- UNSIGay FENCE SOUTH OF 69TH
- RURAL DITCHES NORTH OF 69TH
- VISUAL LACK OF ORDER
- LACK OF PEDESTRIAN FACILITIES
B. KEEPING FR I DLEY C 4PET I T I VE:
- SUBURBAN SHIFT TO OFFICE DEVELOPMENT
- DEVELOPERS DESIRE FOR ATTRACTIVE ENTRANCE AND SURROUNDINGS GIT`� �/T1U5F�lp
- PRIVATE INVESTMENT $ = PROPERTY TAX S
WHAT?
X RJWT I NG AND SCREEN I NG 614K
B. INTERSECTION IwROVEMENTs 1,453K
C. STREET LIGaING
5M F5M lox
W/0 FENCE I INTERSECTION PLANTING
1,�3K � SooK � SooK
BRICK & DUB I
4M 1 4W 4M
INTERSECTION
& FRONTAGE1 '
HN KXW.
5_,6M $119M 1$1,431K $1,059K
L ` ...1
6 -D
CHRONOLOGICAL SUMMARY OF
UNIVERSITY AVENUE CORRIDOR PROJECT 1985 -88
Mar. 21, 185 The Fridley Chamber of Commerce decided to petition
the City to improve the appearance of University
Avenue. There was a history of complaints by
adjacent business people about unsightly "rural"
appearance of University Avenue, including litter,
unmowed grass, weeds, standing water in ditches,
cattails, poor lighting, scraggly trees, no bus
shelters or connecting sidewalks and unsightly chain
link fences.
June 18, 185 At City Council direction, the City Manager /HRA
Director sent out RFP's for preliminary designs.
Six firms responded.
April 1986 The City Manager, Public Works Director, and
Community Development Director interviewed proposers
and choose Barton - Aschman Associates, partly on the
unique proposal for citizen involvement through a
Technical Advisory Committee (TAC). Virginia
Schnabel volunteered to chair the TAC.
May 8, 186 City Council and HRA informally authorized the City
Manager /HRA Director to proceed with Barton - Aschman.
June -Sept. 186 TAC was selected and met with consultant for six
meetings (minutes to CC /HRA). HRA and City Council
briefed on progress. Council authorized request to
MnDOT to remove fence on east side.
Oct. 9, '86 HRA and Councilmember Schneider reviewed and
commented on outline master plan.
Nov. 17 -Dec.3 Staff, department heads, and TAC reviewed and
1986 commented on draft master plan.
Dec. 10, 186 Planning Commission reviewed draft master plan.
Dec. 11, 186 Joint HRA /City Council meeting. HRA reviewed &
approved $1.43M concept including intersection and
frontage road lights. Budget was to cover entire
corridor. $409K lights, $522K plants, $500K
intersection. HRA directed the staff to prepare an
implementation schedule to accelerate implementation
as much as possible to coincide with the 1988 dead-
line for expenditure of bond proceeds.
Jan. 7, 187 Planning Commission approved amended master plan.
6 -E
CHRONOLOGICAL SUMMARY OF UNIVERSITY AVENUE Page 2
CORRIDOR PROJECT 1985 -88
Jan. 9, 187 HRA approved Annual Report featuring University
Avenue Corridor five year upgrade plan.
Apr. 9, 187 HRA ok'd Barton - Aschman for detail design not to
exceed $23K for Phase I: 57th Avenue to 61st Avenue
and 73rd Avenue to Osborne Road.
May 14, 187 HRA expanded contract with Barton- Aschman. HRA gave
discretion to staff for potential budget up to
$44.6K. Staff to direct and assist with field
supervisors under Barton - Aschman direction.
Optional services: $3.6K proposed intersection
improvements, $4.2K median treatment, $8K field
observations.
July 9, 187 Barton- Aschman presented six median treatment
concepts to HRA. Staff presented concept of 57th
Place redevelopment. HRA expressed interest in
maintenance cost analysis.
Aug. 13, 187 Staff proposed prairie wildflowers and turf concept
with urban treatment at intersections as a response
to HRA concerns about maintenance and expense of
alternate installations. HRA directed staff to
proceed.
Sept. 10, 187 HRA updated on potential costs for traffic signal
modifications.
Oct. 8, 187 Ron Bowen, Prairie Concept discussion. Barton -
Aschman presents cost estimate for Phase I total-
ing $957K including: $82K for traffic signals as
"worst case ". No action by HRA.
Nov. 5, 187 At joint Council /HRA conference, HRA agreed to $1.5
M for Phase I implementation. Annual Report details
the Phase I demonstration sections.
Nov. 12, 187 HRA approved $1.5M for University Avenue Corridor
by resolution. J. Flora memo in agenda outlined
costs of Phase I project.
Feb. 11, 188 HRA approved landscaping, hard surface concepts,
added traffic signals and light standards, and
deferred the prairie grass /wild flower experiment.
Feb. -June 188 Progress on working drawings delayed while staff and
City Council analyzed various decorative lighting
options.
6..r-
CHRONOLOGICAL SUKKARY OF UNIVERSITY AVENUE
CORRIDOR PROJECT 1985 -88 Page 3
June 3, 188 City IKanager /HRA Director recommended that the HRA
and City Council set up a trust fund for perpetual
maintenance of ERA projects.
Sept. 8, 988 HRA delayed discussion of maintenance policy until
MnDOT has reviewed and approved the final plans and
specifications.
Nov. lo, 188 HRA delayed discussion of maintenance policy until
joint HRA /City Council conference tentatively
scheduled for January 89.
Jan. 24, 089 Final plans and specifications sent to MnDOT for
review.
OUSING and REDEVELOPMENT AUTHORITY
6 -G
COMMISSION MEMBERS: LAWRENCE COMMERS, CHAIRMAN
DUANE PRARE VEGNIA SCHNABEL WALTER RASMUSSEN JOHN MEYER
CITY OF FRIDLEY
TO: Housing & Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: Coverage of Maintenance Costs for HRA Related
Street Projects
After several meetings with City Manager William Burns, David
Newman, and John Flora regarding the coverage of maintenance costs
for HRA related street projects, we recommend the following
policies:
1. The cost of energy, repair, and maintenance for two -ball
lighting systems that are being installed along access
roads should be borne by the benefitted property owners
through the creation of assessment districts. On new
projects, we would seek to have the property owners
circulate a petition requesting assessment for these
purposes.
2. Maintenance of decorative brick, bus shelters, land-
scaping, and lawn care in TIF districts should be the
responsibility of the HRA until such time as the relevant
TIF HRA districts passed out of existence. During that
time, as long as there was adequate tax increment coming
from the district to pay for the maintenance, the HRA
should contract with various vendors to have the
maintenance completed.
3. If the HRA found itself in a position where repayment of
various HRA bonds was threatened by maintenance costs
mentioned in item 2, then the City should shoulder the
responsibility for these costs either by contract with
vendors or by in -house performance of the work.
4. As an alternative to item 1, the adjacent property owners
could be assessed for the installation of the lighting
systems (as at Viron Road), and the HRA and City would
be responsible for their maintenance as in items 2 and
3.
5. Whatever alternative is chosen, the policy should be
consistent city -wide, including renegotiating the Viron
Road agreements if required.
JR:ls M -89 -111
EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 571 -3450
FRIDLEY, MN 55432 EXT. 117
7
CLAIMS
SAT MEETING)
LAW OFFICES
MASLON EDELMAN BORMAN & BRAND
IBOO MIDWEST PLAZA
MARVIN BORMAN MINNEAPOLIS, MINNESOTA 55402 -2591 JAMES J. BENDER
CHARLES OUAINTANCE, JR.
TELEPHONE (612) 330 -8018
COOPER S. ASHLEY
NEIL 1. SELL
KIRK O. SHERMAN
ROBERT A. ENGELKE
TELECOPIER (612) 330 -2616
MARY R. VASALY
MARTIN O. WEINSTEIN
EDWIN CHANIN
WILLIAM E. MULLIN
WAYNE S. MOSKOWITZ
WILLIAM Z. PENTELOVITCH
J. BENJAMIN AHRENS
JOSEPH ALEXANDER
MALLORY K. MULLINS
MICHAEL L. SNOW
SUSAN D. HOLAPPA
BARBARA R. HAUSER
CHARLES A. HOFFMAN
GARY J. HAUGEN
RUSSELL F. LEDERMAN
THOMAS N. BORMAN
JOHN H. GILMORE
REBECCA PALMER~
SUSAN E. MaORATH
MARK BAUMANN
RICHARD A. KEMPF
DAVID F. HERR
MARK W. LEE
R. LAWRENCE PURDY
LORRIE L. SALZL
MARY P.
February 28, 19 8 9
SUSAN E. OLIPHANT
RICHARD O. WILSON
G. WILSON
ALAIN M. BAUDRY
LAWRENCE M. SHAPIRO
LUCIA M. COPLAND
HOWARD S. TARKOW
LAYMAN EDELMAN
WILLIAM M. MOWER
OF COUNOCL
LARRY A. KOCH
VIRGINIA A. BELL
SAMUEL H. MASLON
JUSTIN H. PERL
1001 -lose
88 -1478
David Newman, Esq.
Herrick & Newman
6401 University Avenue N.E.
Suite 205
Fridley, Minnesota 55432
Re: Tanurb Developments, Inc. - Fridley Project
(S.W. Quadrant of Mississippi Street and
University Avenue)
Dear Dave:
At your request, this letter will serve as written confirm-
ation that Tanurb has exercised its right to terminate the
Purchase Agreements for the University Avenue Shopping Center
parcel and the Rice Plaza parcel.
Although Tanurb was interested in obtaining an extension
from the property owners so that it could pursue additional
discussions with prospective tenants, the fee owners were not
willing to grant such an extension without payment of certain
consideration. Accordingly, unless Tanurb receives unsolicited
tenant interest in the site, it does not intend, at present,
to pursue any further plans for developing the property.
Yours very truly,
a
CW �� ,.✓
Edwin Chanin
EC :mdd
cc: Thomas Ehrlich
Thomas Borman
Virgil C. Herrick
David P. Newman
James D. Hoeft
Gregg V. Herrick
T13-IERRICK & NEW, MAN P.A.
ATTORNEYS AT LAW
March 3, 1989
Jock Robertson
City of Fridley
6431 University Avenue N.E.
Fridley, MN 55432
RE: Tanurb Development
Dear Jock:
Enclosed you will find a copy of the letter from Edwin Chanin
which we recently discussed pertaining to the above matter.
Sincerely yours,
David P. Newman
DPN:jeb
Enclosure
cc: James Casserly (copy of encl.)
Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432,612 -571 -3850
Casserly Law Office, P.A.
215 South 11th Street, Suite 200 • Minneapolis, • Minnesota 55403
Office (612) 342 -2279 • Fax (612) 332 -4765
TO: City of Fridley
Housing and Redevelopment Authority
ee G•
FROM: James R. Casserly .t`•
RE: Hillwind Office Project
DATED: March 8, 1989
We have reviewed the request for tax increment assistance for
the above project. The developer has provided us with a very
detailed pro forma with an excellent analysis of the
assumptions.
Our observations regarding the assumptions are as follows:
1. The construction cost of $51.43/sq. ft. for the
shell suggests an extremely high quality building.
Other builders use a $40- 45 /sq. ft. cost.
2. The construction cost for the underground parking is
also shown at $51.43 sq. ft. We are assuming fully
enclosed underground parking which should be
approximately $40.00 /sq. ft. (the current proposal
appears to provide about 20 stalls at a cost over
$17,000 /stall).
3. The base rent of $10.50 /leasable sq.ft. appears
high. The gross rent of over $19.00 /leasable sq. ft. is
very high and reflects the higher costs associated with
the construction of the building.
The conclusion is obvious: given the total cost of the
project, the tax increment subsidy requested is necessary.
The policy question is equally obvious: does the HRA wish to
subsidize, and at what level, a higher quality project.
The current policy of the HRA is to provide assistance in one
of the following ways:
A. The developer receives a grant of 5% of the
estimated market value of the project, OR:
B. The developer receives a loan amounting to 15% of
the estimated market value of the project with the
following terms and conditions: no interest payment
for three years, interest accruing but no payment
for the fourth and fifth years, interest payments
only for the sixth through the fourteenth year, full
payment of principal in the fifteenth year and
interest rate at prime fixed at the time the loan is
made.
These options can be combined. For example, there could be a
grant for 2 1/2% of the estimated market value and a loan of
7 1/2 %. Any grant or loan proceeds must be spent on tax
increment eligible expenses.
In the last 6 years, Johnson Printing, Springbrook,
Shorewood, Wholesale Club, Windfield and Moore Lake Commons
all received some variation or combination of the assistance
described above.
Recommendation
The Hillwind Office Project would be a
the City. However, the projects refer:
excellent and were accomplished within
criteria. We do not encourage the HRA
guidelines but to provide the level of
above.
wonderful addition to
red to above are also
the specified
to change its
assistance as outlined
PROJECT COST BREAKDOWN
Land $ 200,000
Building
3 Floors (office) 31,135 square feet
Underground Parking 6,777 square feet
Total 37,912 square feet
Construction Cost
37,912 square feet @. $51.43
a square foot $1,949,814
Tenant improvements 22,750
square feet @ $15 /square foot 341,250 $2,291,064
Indirect Costs
Marketing and Leasing
35,000
Insurance
7,000
Permanent loan cast @
1% x $2,200,000
22,000
Construction loan cost
2% x $2,200,000
44,000
Construction loan interest
$2,200,000 x 10.5% x 50%
x 12 months
115,500
Taxes During Construction
4,700
2282200
TOTAL COST OF PROJECT
$2,7199264
15% TIF From City
($2,291,064 + $200,000 = $2,491,064)
($ 373,659)
Total Cost of the Project After TIP
$2,345,605
r TEINEMCK & d, LEWMLAN PA.
3
ATTORNEYS ATIAW
Virgil C. Herrick
David P. Newman
James D. Hoeft
Gregg V. Herrick
March 3, 1989
Jock Robertson
City of Fridley
6431 University Avenue N.E.
Fridley, MN 55432
RE: Tanurb Development
Dear Jock:
Enclosed you will find a copy of the letter from Edwin Chanin
which we recently discussed pertaining to the above matter.
Sincerely yours,
David P. Newman
DPN:jeb
Enclosure
cc: James Casserly (copy of encl.)
Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612 -571 -3850
LAW OFFICES
MASLON EDELMAN BORMAN 6r BRAND
1800 MIDWEST PLAZA
MARVIN BORMAN MINNEAPOLIS, MINNESOTA 55402 -2591
CHARLES OUAINTANCEe JR.
TELEPHONE (612) 330 -8018
NEIL 1. SELL
TELECOPIER (612) 338 -8618
ROBERT A. ENGELKE
MARTIN O. WEINSTEIN
WILLIAM E. MULLIN
WILLIAM Z. PENTELOVITCH
JOSEPH ALEXANDER
MICHAEL L. SNOW
BARBARA R. HAUSER
GARY J. HAUGEN
THOMAS H. BORMAN
REBECCA PALMER�
MARK BAU-MAN N
DAVID F. HERR
R. LAWRENCE PURDY
MARY P. FOARD9
February 28, 1989
RICHARD O. WILSON
LAWRENCE M. SHAPIRO
LUCIA M. COPLAND
HOWARD B. TARKOW
WILLIAM M. MOWER
LARRY A. KOCH
VIRGINIA A. BELL
JUSTIN H. PERL
88 -1478
David Newman, Esq.
Herrick & Newman
6401 University Avenue N.E.
Suite 205
Fridley, Minnesota 55432
Re: Tanurb Developments, Inc. - Fridley Project
(S.W. Quadrant of Mississippi Street and
University Avenue)
Dear Dave:
JAMES J. BENDER
COOPER S. ASHLEY
KIRK O. SHERMAN
MARY R. VAS^LY
EDWIN CHANIN
WAYNE S. MOSKOWITZ
J. BENJAMIN AHRENS
MALLORY K. MULLINS
SUSAN D. HOLAPP^
CHARLES A. HOFFMAN
RUSSELL F. LEDERMAN
JOHN H. GILMORE
SUSAN E. MOORATH
RICHARD A. KEMPF
MARK W. LEE
LORRIE L. SALZL
SUSAN E. OLIPHANT
^LAIN M. BAUDRY
HYMAN EDELMAN
OI COUNSCL
SAMUEL H. MASLON
Igoe-lose
At your request, this letter will serve as written confirm-
ation that Tanurb has exercised its right to terminate the
Purchase Agreements for the University Avenue Shopping Center
parcel and the Rice Plaza parcel.
Although Tanurb was interested in obtaining an extension
from the property owners so that it could pursue additional
discussions with prospective tenants, the fee owners were not
willing to grant such an extension without payment of certain
consideration. Accordingly, unless Tanurb receives unsolicited
tenant interest in the site, it does not intend, at present,
to pursue any further plans for developing the property.
Yours
� very truly,
46 M1241 1.t� --
Edwin Chanin
EC:mdd
cc: Thomas Ehrlich
Thomas Borman