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HRA 08/10/1989 - 6398HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 10, 1989 7:00 P. M. PUBLIC CDPY R City of Fridley LA G E N D A HOUSING & REDEVELOPMENT AUTHORITY MTG. AUGUST 10, 1989 7:00 P.M. Location: Community Education Center 6085 Seventh Street N.E. CALL TO ORDER: ROLL CALL: APPROVAL OF MINUTES: June 8, 1989 CONSIDERATION OF DEVELOPMENT AGREEMENT FOR STINSKI /HILLWIND CENTRE OFFICE BUILDING . . . . . . . .1 - 1C CONSIDERATION OF ELECTRONIC SECURITY AND ANTI- GRAFFITI SEALER FOR FRIDLEY PLAZA RAMP . . . . . . . .2 - 2E CONSIDERATION OF FINANCIAL ASSISTANCE TO RETROFIT EXISTING GARAGE AND CONSTRUCT DRIVEWAY AT 5755 CENTRAL AVENUE N.E .. . . . . . . . . . . .3 - 3E INFORMATION ON COUNCIL CONFERENCE ON SENIOR HOUSING . . . . . . . . . . . . . . . . . . . . .4 - 4B INFORMATION ON COUNCIL CONFERENCE ON OLD CENTRAL AVENUE REDEVELOPMENT . . . . . . . . . . . .5 INFORMATION ON 57TH PLACE ENVIRONMENTAL TESTING AND RAPID OIL . . . . . . . . . . . .6 ESTIMATES: GREENMASTERS - LAKE POINTE MAINTENANCE . . . . . . . . .7 - 7A ROYAL ELECTRIC - EAST MOORE LAKE IRRIGATION. . . . . . .8 CLAIMS . . . . . . . . . . . . . . . . . . . . . . . . . .9 OTHER BUSINESS ADJOURNMENT P A f CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY MEETINGr JUNE 8, 1989 CALL TO ORDER: Acting Chairperson Meyer called the June 8, 1989, Housing and Redevelopment Authority meeting to order at 7:05 p.m. ROLL CALL: Members Present: John Meyer, Duane Praire, Walter Rasmussen Members Absent: Larry Commers, Virginia Schnabel Others Present: Jock Robertson, Executive Director of HRA William Burns, Director of HRA William Nee, Mayor Dave Newman, HRA Attorney Rick Pribyl, Finance Director John Flora, Public Works Director Jim Casserly, Molzahn Casserly Bob Boisclair, Boisclair Corp. Dick Bienapfl, Waterford Group Timothy Nichols, 7777 Washington Ave. S., Edina Liv Horneland, Coldwell Banker APPROVAL OF MAY 11 1989 HOUSING & REDEVELOPMENT AUTHORITY MINUTES1. MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to approve the May 11, 1989, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON. MEYER DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. CONSIDERATION OF BOISCLAIR CORPORATION REDEVELOPMENT CONCEPT FOR SOUTHWEST QUADRANT OF UNIVERSITY AVENUE /MISSISSIPPI STREET: Mr. Robertson stated that at the last meeting, the HRA directed City staff to work with Mr. Boisclair and his staff on an economic and financial analysis of the project. That analysis was received from Jim Casserly on Tuesday morning and it was delivered to the HRA members Tuesday afternoon. Mr. Robertson stated Mr. Casserly is at the meeting to explain his major conclusions which are summarized on the front page of his memo dated June 2, 1989. The summary is that the project will need 9 I° HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE S. 1989 - PAGE 2 assistance in excess of $5 million in the land to produce its $26 million development, and the site will only provide about $1.2 million for the developer. The balance of the approximately $5 million will have to be generated from outside the site. Mr. Casserly stated it is always difficult to summarize this kind of development proposal. It is a very extensive proposal, and he saw himself as not questioning or considering the merits of the proposal, but only analyzing the kinds of costs involved if the HRA and the City Council are interested in pursuing the proposal. Mr. Casserly stated he wanted to make it very clear from the beginning that, in his judgment, the developer has made a very conscientious and honest analysis of the kind of public funding that will be needed to make this proposal work. If anything, the developer may have overstated to a certain extent the amount of monies that will be needed to make the project work. Mr. Casserly stated that given the kind of development that is envisioned by this proposal, it requires a lot of multi - family housing. Because of the density and the high use of the site, there is no way this kind of development can take place without a very substantial public investment. It is compounded by the fact that it is a redevelopment site. As stated before, when they get involved in redevelopment, they have this never - ending issue. It may cost the HRA $4 million to do the acquisition and basic preparation of the site. It is not a $4 million site; it is a $1/2 - $1/4 million dollar site. So, the problem they always have and that they cannot escape is that in the hands of the developer, it is not worth to the developer what it costs the HRA to get it. Mr. Casserly stated the budget he has worked with has been fairly consistent for the last 18 months. It is approximately a $4 million budget to do the acquisition /demolition /relocation and some public improvements that are needed to go with the site. This particular $25 million would generate almost $4 million so that this particular development would be able to do all the things the HRA wanted to do in terms of the acquisition /demolition /relocation. Unfortunately, to make this kind of development work, it needs an additional approximate $5 million, and that becomes the crux of the problem. It is just not possible to generate any more money from that site. There is 20 years left on the district, which means the HRA will get, at the very best, 18 full years of increment, but probably more like 16 -17. The second constraint is just the size of the site itself. Mr. Casserly stated the numbers the Boisclair Corporation has suggested are not different than the numbers one of the earlier proposals suggested - -the same $25 -27 million range. The HRA worked on that proposal for several years trying to make those numbers work. That proposal did not work either, because the developer needed funds from outside the site. The HRA is now confronted M HOUSING & REDEVELOPMENT AUTHORITY MEETING. JUNE 8. 1989 - PAGE 3 again with that same issue. To give the HRA a sense of what that means, they can think of it in these terms: A site will normally sustain about a 6 - 1 ratio. If they are going to put $4 million into a site, they need roughly $24 million of valuation. So, if the HRA has a $4 million budget and they need another $5 million, they have to have approximately another $30 million of valuation to borrow from somewhere within the development program. Mr. Boisclair stated their initial purpose for developing the high degree of clarity of the numbers is to get at the issues as quickly as they can, because they have land sellers who need a commitment of substantial front -end dollars before they can move on the development; plus he just wants to make sure all the issues are on the table before they proceed much farther. Mr. Boisclair stated that, in his estimation, the project is highly feasible from the market perspective. They are very excited about this opportunity, and have been very confident that it will be an affirmative decision. With that in mind, they are doing some pre - leasing efforts so they do not lose any time on the retail side of it. Mr. Boisclair stated that as far as the cost of the project, they have used outside construction people who have a great deal of experience in mixed use projects, and they are using their good inputs at this early low level drawings for budgetary purposes. They have been checking these from outside sources as well, so they are very confident that what they are showing the HRA is a fair and accurate representation of what is needed. Mr. Boisclair stated they are also having discussions with FHA. FHA's sense currently is that they are not too anxious to underwrite much of anything regardless of the location because of the major overbuilt status, generally speaking, in the marketplace. They have a meeting with FHA next week and they hope to convince the FHA of this project and this type of density. He stated FHA's main concern is mid -rise, and he feels Boisclair has answers to satisfy FHA's concerns. Mr. Casserly stated that until the HRA has some resolution of some of their other projects, they are not quite sure what their position is. Mr. Prairie stated if it wasn't for the Lake Pointe project, this would not be as difficult a decision to make. Mr. Meyer stated the Lake Pointe project is the HHA's top priority. It is a very heavy burden hanging over their heads and before they get into something equally as challenging financially, they have to proceed very carefully. HOUSING & REDEVELOPMENT AUTHORITY MEETING. JUNE 8. 1989 -PAGE 4 Mr. Robertson stated after the staff financial analysis, Mr. Burns brought this up informally with the City Council on Wednesday, June 7. Mr. Burns stated that the Council expressed a lot of reservations about the Boisclair project as proposed, based primarily on (1) the necessity of borrowing from other districts; and (2) the developer himself because of his past projects. He stated Mayor Nee may want to elaborate a little on this discussion. Mayor Nee stated the Council's main concern is jeopardizing funds for the potential development at the Lake Pointe site. Secondly, it is a philosophical question of where they stop and start returning tax base to the jurisdictions. When they have a big project like this, they ask themselves: "What is in it for us ?" Even though it is a nice project, the Council generally feels it should be self - supporting. In other words, whatever is done there should be financed out of the increment generated from that location. Mayor Nee stated he did not think the Council is real rigid on that, but they do feel strongly that the HRA should stay liquid and have capital available for what they might have to do at the Lake Pointe location. Mayor Nee stated he did not think there was any question about Mr. Boisclair's ability to put the project together. The Council's main concern is drawing out increment in the district that ought to be liquidated. Mr. Burns stated it is important to know that the discussion with the Council was an informal, and the Council was not expecting to discuss it. The comments made were largely comments made by individuals. There was no vote or consensus, and he thought Mayor Nee has captured the essence of the individual comments that were made. Mr. Robertson stated Chairperson Commers could not be at the meeting, but he had called to comment on the agenda items. On this item, Mr. Commers' feeling is that the HRA should not try to adopt a hard and fast rule on the borrowing policy, but to try to keep the options open and decide on a case -by -case basis. He certainly did agree with trying to keep their options open for solving the Lake Pointe problem first. Regarding Mr. Boisclair's reputation, Mr. Commers had stated that in the end, Mr. Boisclair has to demonstrate his financing capability to his own financiers, and Mr. Commers would defer that judgment to people wiser than himself. Ms. Horneland stated the HRA wanted to know that when Mr. Boisclair came back to the HRA that he was the developer of choice as far as the sellers are concerned, and that is the case. The sellers have gone through severe scrutiny, financially, and in the amount of capability of what he has done, and Mr. Boisclair mustered very HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 8, 1989 - PAGE 5 well. The sellers are very comfortable with Mr. Boisclair at this point. Mr. Meyer stated he shared the opinion of Mr. Commers that the financial community who will be backing Mr. Boisclair is better able to judge any financial problems than is the HRA. Mr. Casserly stated given the HRA's present situation and their present state of negotiations, staff is preparing a sample analysis of what happens when different things are done. They truthfully do not know what assumptions to use and may not know for awhile. Ms. Horneland stated that from a market standpoint, Boisclair has what it takes to make this project go, and the project could be up and running and doing something for the community in short order. There is a soft market for office and it could be a long time before anything happens with office. Ms. Horneland stated it comes back to the issue of the sellers waiting for something to happen. They are back to square one, the same position they have been in for ten years. The HRA has to give some serious consideration to what they want to do with the owners of the property if this project is not going to go, and it is not going to be a Tanurb -type project. Mr. Prairie stated it is very difficult to let a nice development like this go, but they have not had a development that required this much assistance from the HRA. Mr. Newman stated he did not suggest the HRA take any action that might foreclose any future consideration of this proposal if the developer would decide to modify the proposal. Mr. Boisclair stated he is here to serve the will of the community; and if it is the City's will to downsize the project, he would certainly look at it. He has expended a significant amount of time and dollars, but the important thing is that assistance outside the district is available. Mr. Newman suggested the HRA reject Mr. Boisclair's proposal at this time to do an approximately $25 million development in which Mr. Boisclair is requesting approximately $5 million in assistance beyond what is generated from this site. Mr. Prairie stated that at the last meeting, the HRA said that philosophically they might be willing to take money from outside the district if the numbers worked out. Mr. Boisclair stated he is willing to study a reduction in the scale of the development. � n HOUSING G REDEVELOPMENT AUTHORITY MEETING, JUNE 8. 1989 - PAGE 6 Mr. Newman stated that from what the HRA said one month ago, they are not automatically rejecting Mr. Boisclair's proposal, but they have to weigh a number of factors, and that is why they asked Boisclair to submit a proposal. Mr. Meyer stated Mr. Boisclair could spend a great deal more money trying to make the development happen, and still the HRA might reject it because of Lake Pointe. Mr. Boisclair stated the natural reaction he would give at this juncture would be to go to a wood frame construction, but the end result quality -wise will not be the same. They would drop the density down from 325 -350 units to 220 -225 units with wood frame. They can definitely look at that, and that would reduce the outside subsidy needed. Mr. Boisclair stated he would be willing to sit down with the HRA, Mr. Casserly, and City staff to discuss the range of probability of subsidy required for the different kinds of projects. Mayor Nee stated the Council is becoming uneasy about the diversion of tax base for purposes of housing subsidy at the expense of the school districts and everybody else. As far as the housing for the elderly, they are having that same feeling. They have not discussed this thinking with the HRA. Mr. Robertson stated he thought it would be worthwhile for Mr. Boisclair to explore a scaled -down version of the development proposal. MOTION by Mr. Prairie, seconded by Mr. Rasmussen, to deny the proposal presented by Boisclair Corporation for a $25 million development and direct City staff to meet with Mr. Boisclair and his associates to attempt to come to some proposal that is agreeable to both parties. Mr. Rasmussen asked if there is really a need for Mr. Boisclair to work with City staff. Is the concept good even if it is scaled down in size? He did not think it would be. He felt the HRA has enough to handle right now with Lake Pointe and other things. He thought the more direct and honest approach is to turn the proposal down now. Mr. Meyer stated he shared Mr. Rasmussen's concern, but the HRA has been honest and up front with Mr. Boisclair and if he is still willing to spend money and energy in pursuing it, maybe something good will come from further discussions. Mr. Prairie suggested they put a short term time frame on the discussions (30 - 60 days) so that this does not drag on for a long time. HOUSING G REDEVELOPMENT AUTHORITY METING, JUNE 8, 1989 - PAGE 7 Mr. Rasmussen asked if there are other developers interested in the site. Ms. Horneland stated they have dealt with a number of developers on this project. Starting out in the process, they had developers that would do housing and retail and also that would do just strictly retail. The market studies that came back on the retail leasing showed it was an impossibility to do the large scale retail type center so they went to the apartment complex type development. That limits the developers that do apartments and retail together. There isn't a significant number of those, and they have had discussions with the ones that do. They have all proposed a similar project to Boisclair's. None of them has said they would do a significantly smaller project. Whoever the developer is would still have to be responsive to the dollars that are available. Ms. Horneland stated the biggest questions at this point are: If staff is working on the numbers to determine what is available, yet there is the tremendous uncertainty because of the Lake Point project, is there a certain amount they are going to be applying to the Lake Pointe over and above whatever is already in there, or is the amount already in there? Can the HRA really determine an amount that is reasonable and feasible for Mr. Boisclair's project and that it be done, even if the project is scaled down significantly? Mr. Meyer stated he did not know if the HRA could answer those questions either now or perhaps in the immediate future. Mr. Boisclair stated, unfortunately, the name of development is to assume risks, so he appreciated his responsibility and he would assume the risk of progressing further to see whether or not there is a match. Mr. Boisclair stated there is a window that opens July 1 for tax bond authority which will only be available the first part of 1990. He asked if there could be a dual track given them in terms of advising to the City Council that bond inducement is not tantamount to the project approval, but allows them to have the opportunity to make an application to FHA, and allows them to continue the process and save considerable time. Mr. Rasmussen stated he is still opposed to continuing with this project, but he is willing to go along with a 30 - 60 day time frame if the rest of the HRA members wished to do so. Mr. Boisclair stated he felt they can respond to the HRA in a timely manner. Mr. Newman stated he felt 60 days would be an adequate amount of time. HOUSING S REDEVELOPMENT AUTHORITY MEETING, JUNE 8, 1989 - PAGE 8 Mr. Casserly stated it does not require too much of staff's time to have an understanding of how much increment can be generated from the Boisclair development, so time is not a problem. The problem is going to be for Boisclair to figure out if they need $500,000 from outside the site or $3,500,000, because he did not believe a housing project can be done without some assistance. He was not sure if the valuation is ever going to cover the amount of assistance necessary. The HRA is really stuck with having to take money from outside the site. MOTION TO AMEND by Mr. Prairie, seconded by Mr. Rasmussen, to deny the proposal presented by Boisclair Corporation for $25 million development and direct City staff to meet with Mr. Boisclair and his associates to attempt to come to some proposal that is agreeable to both parties, within a time frame of 60 days. Mr. Burns stated the project looks very nice and a project the City would like to have on this site. However, from the standpoint of timing, the ideal thing for the City might be to have the 60 days on the other end. There remains a lot of uncertainty even with a scaled -down proposal until they have some more time to work out the other problems and look at other issues. He felt uneasy about trying to devote a lot of intense staff time on this. With the Onan project, the Lake Pointe project, and other staff commitments, he questioned whether the 60 days is in the right place. sixty days might be better placed 60 -90 days from now. Mr. Rasmussen stated he agreed with Mr. Burns. Mr. Casserly stated there are really some fundamental decisions the HRA is going to have to make: 1. Does the HRA want to put tax increment monies into a housing project, into rental subsidy? 2. Is the HRA is going to take money from outside the site? In response to Mr.. Prairie's question of how much assistance the HRA can provide Boisclair without jeopardizing the Lake Pointe project, Mr. Newman stated if the HRA wants an interpretation as to how much money is safe, the answer is zero. Mr. Pribyl stated he is very concerned at this point in time, because of the dollars that might have to be utilized, and there is so much uncertainty as far as what solutions might be resolved. As far as a comfort level, zero is a good comfort level for him, because he has no idea how to respond to a question about how many dollars the HRA has available. They have no idea what kind of dollars are available, because they do not yet know what the solutions are. HOUSING 6 REDEVELOPMENT AUTHORITY MEETING. JUNE 8. 1989 - PAGE 9 Mr. Meyer stated if Mr. Boisclair is willing to pursue this, knowing the negatives, there is always the hope that something might develop that would meet with the HRA's approval. Mr. Burns stated he did not want to discourage redevelopment. They want to encourage redevelopment. However, at the same time, it is his personal feeling that he did not think the City can realistically be in a position to know whether they can commit money to Mr. Boisclair's project until they are farther along in solving the Lake Pointe problem. Mayor Nee agreed. He stated it would be great if Mr. Boisclair was interested in the project 18 months from now. Ms. Horneland stated, again, there is a significant issue and that involves the sellers of the property. They have gone through this process for 10 years, and they have gone through the process of working with developers and coming in with a proposal with Tanurb to try to keep the market proposal at a number that would work with the City and with the HRA. They discovered a Tanurb project will not work. If Mr. Boisclair is allowed to work with staff on a project that works, but an agreement is not reached, then the owners are back to square one where they have been for 10 years. They would be perfectly happy then to have the HRA take the property out of the redevelopment district and let them be. Ms. Horneland stated she does represent the owners of the property also, and they should be taken into consideration. Mr. Newman stated the City has taken the owners into consideration. With Tanurb this past year, the City worked at a pace that the property owners requested; and now the owners have to recognize that the HRA needs some additional time. . UPON A VOICE VOTE, MEYER AND PRAIRIE VOTING AYE, RASMUSSEN VOTING NAY, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CARRIED BY A VOTE OF 2 -1. 2. CONSIDERATION OF COST - SHARING POLICY FOR FRIDLEY PLAZA RAMP: Mr. Robertson stated this is the issue of paying for the maintenance costs for the Fridley Plaza Ramp. The annual estimated maintenance costs for the ramp are approximately $6,000, and every four years there would be some sealing and striping for an additional cost of $3,500 /year. Since the City and the tenants of the Fridley Plaza Office Building are going to be the main users of the ramp, although it is open to the general public, staff is recommending the HRA and the City split the annual and periodic maintenance costs. The HRA could pay its share out of,. the $800 received from rent of the parking space from the owners of the Fridley Plaza Office Building. HOUSING a REDEVELOPMENT AUTHORITY MEETING. JUNE So 1969 - PAGE 10 Mr. Robertson stated Mr. Burns presented this suggestion to the City Council on Monday, June 6, and the Council concurred with this concept. Chairperson Conners did not like this, but will go along with staff's recommendation; however, he does not want this to be construed generally for other HRA projects. Chairperson Conners feels the HRA should not be in the business of being an operational agency. Mr. Burns stated he is also proposing that the agreement including these terms, as well as a separate agreement that provides for the transfer of the land on which parking ramp sits to the HRA, be handled at the June 19 Council meeting. MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to approve the sharing of maintenance costs with the City for the Fridley Plaza Ramp. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. CONSIDERATION OF DEVELOPMENT AGREEMENT FOR KITTERMAAN /ADVANCE COMPANIES COMMERCIAL REHABILITATION PROJECT: Mr. Robertson stated the HRA reviewed this material at its May meeting, and the HRA directed staff to prepare a draft development agreement to be brought back for the HRA's consideration. That draft development agreement was included in the HRA packet for this meeting. Negotiations have been going on between Mr. Newman and Mr. Kitterman's staff. As of Tuesday, June 6, they are essentially in agreement. Mr. Newman would give an update. Mr. Newman stated it appears they are in agreement on the basic concept. There may be some fine tuning to be done yet, but as in the past, staff has looked to the HRA for approval of the general concept and the overall layout. He believed this agreement is consistent with the HRA's discussions and is a fairly safe investment in light of the fact that the work has been completed and he believed it will meet with the HRA's satisfaction. OTION by Mr. Prairie, seconded by Mr. Rasmussen, to approve the development agreement in concept and direct staff to execute a final development agreement. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE NOTION CARRIED UNANIMOUSLY. 4. CONSIDERATION OF A RESOLUTION ESTABLISHING TAX INCREMENT DISTRICT NO. 9, CENTRAL AVENUE, ONAN: Mr. Robertson stated this proposal grew out of a discussion Mr. Burns initiated with the Onan Corporation this past winter. They are initiating a business retention activity that they intended to HOUSING & REDEVELOPMENT AUTHORITY MEETING. JUNE S. 1989 - PAGE 11_ keep ongoing. Onan which is held as part of Cummins Diesel which is part of the Hawker Sidley group, a United Kingdom Corporation, is trying to decide where to centralize their research and development facility. Onan has scattered sites in the Twin Cities metropolitan area. They also have large plants in Indiana and in Georgia. Mr. Robertson stated the City feels this is a classic TIF district type of application where essentially this is business expansion/ business retention. Staff is recommending a course of action so they can be in a position to offer the best possible inducement for Onan to locate that facility in Fridley and capture the additional taxes and jobs that go with it. Mr. Robertson stated the City is in a somewhat awkward position because normally they would try to negotiate a package first and then establish the tax increment district. Unfortunately, the Legislature has pre - empted what would be the normal course of action by proposing to change the tax increment law which would essentially not allow the City to put this type of proposal together. Anticipating that the legislation would pass, with the concurrence of Chairperson Commers, staff set the wheels in motion to set up the district before the anticipated effective date of the Legislature. With the Governor vetoing the Omnibus Tax Bill for which this TIF modification was attached, that has not imposed the same deadline. However, it is staff's recommendation that they do proceed, simply because they do not know when or if that legislation might still be done in special session. Mr. Robertson stated Mr. Casserly could explain a little more how this is structured and the necessity for the HRA considering the series of recommendations listed in his June 1 memo if the HRA wishes to keep this option open. Mr. Casserly stated there is not much to add to what Mr. Robertson has said. He stated this is just keeping the HRA's options open. Onan has been thinking in terms of expansion apparently for some months if not several years, and they are taking this very seriously. If there is ever a reason to have a tax increment program, this is a very good reason. Staff also saw this as an opportunity to include in the district some of the junkyards and other things that have long been problems. NOTION by Mr. Rasmussen, seconded by Mr. Prairie, to approve Resolution No. 3, "A Resolution Modifying the Redevelopment Plan for Redevelopment Project No. 1 and Modifying the Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 Through No. 8 to Reflect Increased Project Costs and Increased Geographic Area within Redevelopment Project No. 1; and Creating Tax Increment Financing District No. 9 and Approving and Adopting the Tax Increment Financing Plan Relating Thereto ". HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 8, 1989 - PAGE 12 UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. INFORMATION ON MOORE LAKE COMMONS LANDSCAPING: Mr. Robertson stated this is a progress report on what has been done with the landscaping at Moore Lake Commons as of the end of May. 6. ESTIMATES: GREENMASTERS - LAKE POINTE MAINTENANCE MOTION by Mr. Prairie, seconded by Mr. Rasmussen, to approve the estimate for Greenmasters in the amount of $4,644.14. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CARRIED UNANIMOUSLY. 7. CLAIMS (1895- 1899): MOTION by Mr. Prairie, seconded by Mr. Rasmussen, to approve the check register as presented. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CARRIED UNANIMOUSLY. 8. OTHER BUSINESS: a. Acquisition of Lots on Central Avenue Mr. Robertson stated the HRA had received at the meeting two pages, the first page was the HRA's Conceptual Capital Improvement Plan dated 12/21/86 which the HRA adopted at that time. Under "Moore Lake ", they had $150,000 to be used for park expansion along Central Avenue. Mr. Robertson stated that staff is recommending that since they are now in a situation where Moore Lake Commons is happening and that there are three lots available, the HRA consider the purchase of these lots that are presently on the marketplace. Mr. Robertson stated that attached to the Conceptual Plan is a map showing the location of the three lots and their current asking prices. It is the opinion of Leon Madsen, City Assessor, that these prices are too high. He would ask the HRA to give him the authority to try to negotiate a sale of these lots within the guidelines of comparable property as determined by Mr. Madsen. Mr. Robertson stated Mr. Burns has consulted with the City Council on this and they are very favorable to this proposal. P HOUSING 8 REDEVELOPMENT AUTHORITY MEETING, JUNE 8, 1989 - PAGE 13 NOTION by Mr. Rasmussen, seconded by Mr. Prairie, to authorize staff to proceed with negotiations on the sale of the three lots along Central Avenue, the total cost not to exceed $150,000. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CARRIED UNANIMOUSLY. b. Fridley Plaza Ramp Mr. Robertson stated that at the last meeting, the HRA had requested a tour of the Fridley Plaza Ramp, so he had asked Mr. Flora to lead that tour. Mr. Robertson stated he also wanted to bring to the HRA's attention that three bids were advertised, one on the landscaping, two on the signage, and three on some asphalt repair work. When the bids came in on the signage and the landscaping, there was only one bid on each. When advised of this, the City Council was very concerned and wanted a report from staff and an explanation of why only one bid was received and a list of the companies to whom bid specifications were mailed. The Council is reluctant to award the bids until they get this information. Staff wanted to make the HRA aware of this. Also, if the City Council delays until they get the information, there are some potential inRlications. Mr. Robertson stated that regarding the landscaping, while it might be advantageous to delay a month because they get into tree planting time closer to the fall, there is also some question of whether the bidders will have the necessary stock still available to complete the landscaping plan yet this year. Mr. Robertson stated there is also the question that until the underground irrigation gets connected, there will be no irrigation and the landscaping will have to be hand sprinkled or done by hose. It will be more labor intensive and take more staff time to accomplish. Mr. Flora stated that regarding the asphalt, because there was some urgency to get this work done, the bid was awarded for the asphalt repair. Mr. Rasmussen stated it is his feeling that there should be more than one bid received for the landscaping and lighting projects. Mr. Meyer agreed and stated the projects deserve more than one bid. Mr. Flora stated that unless some landscaping is put in, depending on the summer they have, they could experience some erosion of the dirt along the walls between the road and the ramp. Mr. Robertson stated that regardless of what action the HRA takes, some temporary signs are going to be needed for structural safety G OOSING 8 REDEVELOPMENT AUTHORITY MEETING, JUNE 8- _1989 - PAGE 14 reasons on the upper ramp to limit the load limit and some overhead device to prevent trucks from driving onto the upper ramp. Mr. Robertson stated it is his recommendation that the HRA withhold awarding the bids until the Council receives the information needed. Mr. Meyer suggested the City reject the bids and call for new bids to be taken with an appropriate deadline. Mr. Rasmussen stated he did not think there is any alternative but to get some new bids since the Council is concerned about this. Mr. Robertson asked that staff be given the discretion to set new completion times to get more competitive bidding. OTION by Mr. Rasmussen, seconded by Mr. Prairie, to reject the bids for the landscaping and exterior signage for the Fridley Plaza Parking Ramp, and to readvertise for bids; and to direct City staff to set new bid completion deadlines to encourage more competitive bidding. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Flora stated that because the bid received on the asphalt repair was below the original estimate of $20,000, and it was important to complete the ramp and associated parking area for 49'ers Days activities, the City Council awarded the contract for asphalt repair. OTION by Mr. Prairie, seconded by Mr. Rasmussen, to concur with the action taken by the City Council to receive and award the bid to Northwest Asphalt, Inc., for asphalt repair of the Fridley Plaza Ramp in the amount of $12,565. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CARRIED UNANIMOUSLY. The tour of the ramp was postponed until more members can be present. ADJOURNMENT: OTION by Mr. Rasmussen, seconded by Mr. Prairie, to adjourn the meeting. Upon a voice vote, all voting aye, Acting Chairperson Meyer declared the June S. 1989, Housing and Redevelopment Authority meeting adjourned at 9:20 p.m. HOUSING i REDEVELOPMENT AUTHORITY MEETING, JUNE S. 1989 = PAGE 15 Respectfully submitted, yn Saba Recording Secretary OUSING and REDEVELOPMENT AUTHORITY 1 COMMISSION MEMBERS: LAWRENCE COMMERS, CHAIRMAN DUANE PRAIRE VRGNIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: August 3, 1989 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Development Agreement for Stinski/ Hillwind Project Included in the packet is the final draft of the development agreement for the above referenced project. As you recall, at the April 13, 1989, meeting, the HRA approved $109,500 in assistance for the project subject to agreement specifying building materials and renderings to be attached as exhibits, which sum was to be transferred to the developer upon substantial completion of the project. Although the Executive Director and Chairperson of the HRA were authorized to execute the final agreement, enough time has passed that we felt it prudent for you to review it before execution. In the meantime the developers have applied for and received a variance to increase the height to 52 feet. Staff recommends approval of the final form of the development agreement. JR:ls M -89 -447 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (G 12) 571 -3450 FRIDLEY, MN 55432 EXT. 117 Virgil C. Herrick James D. Hoeft Gregg V. Herrick Of Counsel David P. Newman Neil Polstein Hillstrom & Bale, Ltd. 607 Marquette Avenue Suite 400 Minneapolis, MN 55402 HER RICK &- NEVI AUN 1-A ATTORNEYS AT LAW August 2, 1989 RE: Hillwind Project Your File No. 343 -2341 Dear Neil: Enclosed herein you will find the revised draft of the Development Contract regarding the Fridley HRA and Rolche, Inc. for the Hillwind Project. Except as noted below, I have incorporated the changes which you request in your letter of July 10, 1989. Unless you have any objections to these changes this agreement will be submitted to the HRA at their August 10, 1989 meeting for approval. I have adopted the modification to the language which you requested to Section 3.1(b)(v). Frankly, I am not sure it makes a lot of difference if we indicate that the environmental audit is acceptable to the Authority or reasonably acceptable to the Authority. It appears to me that this is more a question of semantics. However, let me point out to you that in the event that this environmental audit indicates that there are any hazardous substances or any contaminates located on the site, then it is my opinion that the developer has not conformed with the requirements of this subsection and that the assistance will not be given. Under no circumstances will the HRA enter into the chain of title on real property where there is any possibility that there are contaminates or hazardous substances. I appreciate your comments regarding Section 3.2(b). Frankly, this is a fairly recent language change that we have made to our development contracts. Certain developers wanted to be certain that the money was being set aside so that it would be available when the project was substantially completed. While I certainly do not believe this is necessary since the HRA is in extremely solvent condition, this was a paragraph we have added to accommodate concerns raised by the developers. The intent was that once the deed was conveyed to the HRA then the money would be earmarked and set aside. Frankly, I have no difficulties if you wish to have this paragraph deleted in its entirety. Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612- 571 -3850 1 -B Neil Polstein August 2, 1989 Page Two As to the twelve month period referenced in Section 3.2(b), I am willing to accept a reasonable extension of this time line. Obviously, we do not want a situation where we enter into a development contract with a developer who then decides to delay the construction of their project for a year or more. On the other hand if the delays are merely the result of construction difficulties, this has never posed a problem in the past. In the event that you do wish to have Section 3.2(b) included, I would see no difficulties in extending this time period to eighteen months. As an aside, I would point out to you that when the HRA approves this contract it is their general practice to do so subject to minor modifications in language as authorized by the Executive Director and the Attorney: Accordingly, in the event that the HRA takes this action at their August 10, 1989 meeting, I would be of the opinion that we could delete Section 3.2(b) if you so requested prior to execution. In response to your comments on page 5 -3, it is my opinion that this item has already been addressed. However, pursuant to your request I have indicated that this indemnification shall not apply to contractual obligations or undertaking taken by the Authority in this agreement. On page 6 -1 I have eliminated Section 6.1(d) and (e). However, I have kept the old set paragraph (f). Frankly, you are right in that this subparagraph was most specifically directed to the instance of where a mortgage might be involved. While I certainly do not expect your client to file for bankruptcy, if this unfortunate event were to occur even in the present arrange- ment, I would not want to see the HRA embroiled as a party to any bankruptcy litigation. Accordingly, I intend to keep this language in this agreement. I am unwilling to accept the changes you have requested to Section 7.1. As a condition for receiving $109,500.00 in assistance from the HRA I don't think it is unreasonable to expect the developer to agree to use this property in conformance with the city zoning code. Frankly, even without this language your client would be required to comply with the zoning code and I don't believe it is an unreasonable hardship to ask them to confirm this in writing. With regard to your comment on Section 7.5 pertaining to ten days 'written notice of changing address, you will note that we have already included language indicating, "or at such other address as may be designated in writing... ". 1 -C Neil Polstein August 2, 1989 Page Three In Section 8.3 I have indicated that the minimum improvements need to be completed by October 1, 1990. Let me assure you that it does matter to the HRA when this project is completed. They are not prepared to agree to front a project which might not be completed for three years. The purpose in providing this assistance is to assist quality development which will occur at this time. If our efforts are successful then other development will follow which will not need our assistance. In general, I believe that I have incorporated most of your comments. The draft of the Development Contract which is enclosed -is the one which will be submitted to the HRA at their next meeting. If you have any further questions or comments please do not hesitate to contact me. I do not believe it will be necessary for your clients to be-present at the HRA meeting. However, if they would like to be present they are most certainly welcome. Sincerely yours, David P. Newman DPN:jeb Enclosure cc: Jock Robertson James Casserly a, o L F` POLICE DEPARTMENT City of Fridley ` Minnesota c A -► i MEMORANDUM L 1.fr51- AUUU31 4 IVOV FROM JAMES P. HILL PUBLIC SAFETY D TO ACTION INFO SUBJECT LOWER LEVEL RAMP SECURITY JOCK OB RTS City Manager Bill Burns recently expressed interest in security cameras and monitoring equipment in the lower level parking ramp. It is my understanding that Tim Turnbull and Bill Hunt of our city staff have had in -depth discussions with Mr. Burns regarding this interest. Mr. Burns has been advised of the history of this topic and HRA's previous decision to provide conduit during construction in the event HRA desires to install this equipment at a later date. Mr. Burns interest is in one camera at an approximate cost of $4,000.00 and sound discrimination equipment at an approximate cost of $7,000.00. There would also be some minimal cost for electrical service. Mr. Burns would like to know if HRA is interested in funding the equipment at this time. OUSING and REDEVELOPMENT AUTHORITY 2 -A COMMISSION MEMBERS: LAWRENCE COMMERS, CHAMMAN DUANE PRARE VMGNIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: August 3, 1989 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Plaza Ramp Change Orders 1. At the regular City Council meeting of July 10, the Council unanimously adopted the ordinance transferring the title of a portion of City land underneath the Fridley Plaza parking ramp to the HRA. This ordinance was published in the Fridley Focus on July 19, 1989. 2. You will see in your packet a memo from the architects and structural engineers advising the City use a ramp only as a parking facility and to avoid holding dances, parades, and other types of organized activities on the ramp. 3. You will also note in the packet a letter about stress cracks that have appeared in the main joists that can be seen at the lower level. Note that the engineers have advised that these are not structurally serious, but that the cracks should be mended by filling. John Flora will keep us advised of the recommended remedy and I will provide that information to you when it is available. 4. At the Council meeting on July 24 to which you were invited, the architects and construction manager reviewed all of the change orders with the City Council and answered the Council's questions (see summary in packet) . The Council, City Manager, John Flora, and I are satisfied that the changes were desirable and prudent. Please feel free to follow up with me and John Flora if you have any further questions. 5. In the attached memos, the Public Safety Director has recommended that it is not necessary to paint the lower level as it is visible with the lighting installed. However, the Public Works Director recommends the HRA consider applying a clear anti - graffiti sealer instead. JR:ls M -8.9 -445 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. ($12) 571 -3450 FRIDLEY, MN 55432 EXT. 117 TO: Jock Robertson, FROM: John G. Flora, DATE: June 22, 1989 SUBJECT: HRA Ramp MEMORANDUM Executive Director -HRA Public Works Director PW89 -152 2 -B I concur with the recommendation of the Public Safety Director regarding painting of the lower level ramp area. The existing lighting system and concrete color is bright and light enough to provide adequate visibility during the evening hours. I would recommend that the lower structure not be painted with any paint in order to reduce the costs and also to facilitate the future maintenance expenditures which would be required to repaint the lower facility. As an option, the HRA may want to consider placing a clear anti - graffiti sealer on the concrete walls in the lower level which should cost less than painting the entire structure and would facilitate the removal of any graffiti which may be placed on it in the future. In regards to the upper level ramp, three additional light bases have been poured and wired in for the upper ramp lighting system. Currently, we have temporary wooden boxes covering the series electrical system. While it may not be necessary because the existing fixtures provide sufficient light to the area, the fact that the bases have been poured, it would appear to be more appropriate to install the three additional light fixtures in order to complete the aesthetics of the upper ramp. As a minimum, if the light fixtures are not purchased, we should consider constructing and placing some sort of decorative cover for the electrical system on those three pole supports. JGF /ts cc: William W. Burns Jim Hill rr-1 AD POLICE DEPARTMENT ' ® City of Fridley Minnesota n A T F rTTXTr ') MEMORANDUM 2 -C - - -.. FROM PUBLIC SAFETY DIRECTOR J.P.H L TO ACTION INFO SUBJECT H.R.A. RAMP SECURITY JOHN FLORA xx BILL BURNS XX After basic completion of the H.R.A. Ramp, we have had an opportunity to observe security concerns while the ramp was utilized. Based upon our observations, we found the ramp to be very visible at night from the north /northeast as well as from inside the lower level of the municipal center. In addition, sound carries very well from inside the lower level ramp to the street /driveway area. Based upon the results of actual observation and use of the ramp, we see no need for additional security measures at this time. H.R.A. may wish to consider a moratorium on additional security cost such as paint until such time as changing conditions would suggest reconsideration. JPH /sa 2 -D CITY OF FRIDLEY M E M O R A N D U M TO: Jock Robertson, Executive Director of the HRA FROM: Tim Turnbuliq--Public Safety Projects Coordinator RE: Parking Ramp Security DATE: December 29, 1988 I would like to provide you with some information concerning the security for the parking ramp that is located just to the east of the Fridley Civic Center at 6431 University Ave. I have reviewed the police records and found that most of the calls were associated with the police department and civic center. Over the last two years only 16 calls for service were associated with the parking lot. Over the past two years no assaults were reported in the parking areas around the civic center. I believe this is due in part to the fact that the police department is located in the civic center. This naturally generates a high volume of police traffic in and around the area. Although I am aware of some concern associated with parking ramps in the downtown St. Paul and Mpls. areas, I am unaware of any concern over the present level of crime in the civic center area. Obviously any concerns that may be expressed about the new underground parking ramp would have to be speculative in nature. The lack of reported criminal activity in the previous parking facility led the HRA and us to conclude that a moderate approach to security would be in the best interest of the public which we serve. The nature of the security measures adopted consisted of uniform lighting. In particular the below grade light level should be greater than 10 footcandles horizontal illumination and 15 footcandles vertical illumination with no horizontal level greater than three times the minimum level. Basically we increased the quality and uniformity of lighting in the parking facility. In addition, to maximize the efficiency of the lighting system and visualization in the lower level the ceiling and all vertical surfaces are to be painted with high reflectance, non - specular finish. The next issue is the screening of the north side of the below ground area. My understanding of this situation is that there will be screening when appropriate to restrict the access to the lower level. Only two areas will be allowing for the pedestrian public to enter or leave the lot. One will be the stairway on the east 2 -E side of the underground garage. The other will be near the northwest and west end of the underground garage. This will allow the public to enter into the lower level of the civic center or to exit the ramp into the alleyway ramp to the north. The project will also incorporate the conduit runways for any future security camera capability. This capability does not appear warranted at this time due to the lack of crime reported previously in the area. The security camera capability would also require monitors in the police department. This would in turn require someone to watch the monitors and react appropriately. Again based on the lack of reported criminal activity in the previous parking facility, the consensus of. the HRA board was that this surveillance capability was not necessary at this time. In light of the lack of reported crime in and around the parking lot and no individuals who had factually supported security concerns, the HRA board discussion was ended at that point. MEMORANDUM TO: Jock Robertson, Executive Director - HRA PW89 -227 FROM: John G. F1ora,PPublic Works Director 0. ,�I i Mark A. Winson, Asst. Public Works DirectorjlI1��L DATE: August 4, 1989 SUBJECT: Reconstruction of Driveway at 5755 Central Avenue Background See attached memo to Housing and Redevelopment Authority dated May 3, 1989. Current Status The Property Owner has received four (4) bids for the retro fit of the existing garage. The low bid was in the amount of $2,475.00. During discussions with the property owner, it was decided that there would be a savings in constructing the new driveway off the side of the existing garage due to the slope of the ground at the rear of the garage. A rear entrance would require extensive dirt work and the construction of a retaining wall. The Property Owner has agreed to the side entrance. The estimated improvement cost to remove the existing driveway and install the new driveway is $3,500.00. Recommendation Staff recommends the HRA authorize the payment of $2,475.00 to the Property Owner, Duane Flaten, towards the reconstruction of his garage and authorize the Public Works Department to remove the existing driveway and construct a new driveway from Hackmann Avenue to the garage at a cost of $3,500.00. Additionally the staff recommends the HRA consider granting the excess property, indicated on the attached map, to Mr. Flaten after the new intersection is constructed in return for his agreement to maintain said property. MAW /ts K FIK CnYOF FWDLFY jtlb LAL 0 - O 1 < 6 . r` rb c: tv JG) cn cn m > M,41 < m Z,5 MM M z > V V m � 6c,� 'Ar zz X .4.1, z m a m :2 rn n 3-A G- m x m " y io m 0 0 (A 0 m N 00 N m <0 -Z 00 0 N to I --4 0) ZA rn O U, ez C) 00 lit T D Ln .I I OUSING and REDEVELOPMENT AUTHORITY 3 -B COMMISSION MEMBERS: LAWRENCE COMMERS, CHAIRMAN DUANE PRARE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: May 3, 1989 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Authorize Reconstruction of Driveway from Old Central Avenue to Hackmann Avenue Background The HRA acquired the residential property in the northeast corner of the intersection of Old Central and Hathaway Lane so that the reconstruction of the Old Central /Hathaway intersection could occur in conjunction with the Highway 65 intersection improvement associated with the Lake Pointe project. As is indicated on the attached minutes, the HRA was informed on December 11, 1986, that it will be necessary to relocate the driveway at 5755 Central Avenue because it is too close to the proposed redesigned intersection. The options discussed at that time were to move the garage doors from the front to the rear of the garage and to construct a new driveway to Hackmann Avenue. Current Status The property owner wants to tear down the garage and rebuild it as soon as possible. The Building Inspector inspected the property on April 21, 1989. There are several items which need to be completed so that the building meets the building code. He also points out that there are three courses of block at the rear of the garage. In order to relocate the garage door from the front to the rear of the garage, the entire rear wall would have to be replaced. The property owner has indicated a willingness to share some of the costs of building a new garage. Staff recommends that we advise the property owner to receive estimates for the retrofit of the existing garage and for construction of the new garage. The HRA could then authorize an amount equal to the cost of the retrofit, and the property owner could use that money toward building a new garage, if he desires. EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 571 -3450 FRIDLEY, MN 55432 EXT. 117 3 -C old Central / Hackmann Avenue May 3, 1989 Page 2 Given the current condition of the garage, it would be better for the neighborhood to have an improved structure at the new intersection. Recommendation Staff recommends the HRA authorize the Public Works Department to remove the existing driveway and construct a new driveway from Hackmann Avenue to the garage. Staff also recommends that the Executive Director be authorized to contact the property owner to submit comparative bids on the cost of reconstruction of a new garage and the cost of retrofitting the existing garage. JR:ls M -89 -212 3 -D HOUSING 6 REOEVELOPNENT AUTHORITY H EETING, OECEf•1RER 11, 1986 PAGE 15 fir. Qureshi stated the City was trying to cooperate the best way they can in minimizing fir. Weir's concerns. 7 7CONSIDERATION OF AUTHORIZING THE CITY TO PROCEED 14ITII PROPERTY ACQI'ISTTIO'l ASSOCIATED WITH THE INTERSF .TIOtt I 1PROVETIENT OF HATHAVAY LANE N!1 OLD CF "ITRAL: Mr. Qureshi stated this item was for the HRA's information. '1r. Qureshi stated that associated with the intersection improvement. at Highway 65 /1lest floore Lake Drive /Old Central, there was also the redesian of the Hathaway /Hackmann /Hillwind /Old Central intersection. The HRA purchased the corner residential lot in the area in order to provide for this inter- section improvement. In addition, it appeared to be necessary to relocate the garage access at 5755 Old Central because of its nroximity to the new intersection to provide dccess off Hathaway Lane. The garage doors would have to be changed from front to rear and a new driveway constructed from the rear of the property. This driveway would have to cross a part of 5760 Hathaway Lane. The person who owns 5760 Hathaway Lane has indicated a desire to sell the property, a triangular piece about 24 ft. long by 28 ft. deep. 8. CONSIDERATION OF APPROVING A CONCEPTUAL PLAN FOR FUTURE IMPROVEMENT EXPENDITURES Mr. Qureshi stated that information regarding the $3,400,000 in available funds from the 1985 $11,550,000 G.O. Tax Increment Bond sale had been brought to the HRA's attention at the May 8, 1986 HRA meeting. At that time, conceptual approval was given by the HRA to spend the available $3.4 million for several proposed projects within Redevelopment Project No. 1. At the September 23, 1986 meeting of the HRA, staff advised the HRA members of the approximately $6.8 million in projected increment within Redevelopment Project No. 1 which will have been generated by the year 1993. It had been the concensus of both the HRA and the City Council that the HRA continue to collect increment generated within Project Area No.l. Staff was requested to prepare a timeline of proposed projects and expenditures which could be funded with the $6.8 million in available increment. Mr. Qureshi stated that staff has prepared a Conceptual Plan which addressess the projects, expenditures and the timef came for the expenditures. This Conceptual Plan is included herein as Exhibit B. on the overhead projector, Mr. Qureshi increment generated from increased values following ways: 1. To retire bonds the HRA has sold, as increment is pledged first to pay off such bonds. 2. Additional bonds may be sold to fund other development projects within the Project Area. 3. To fund projects directly, using available increment which is not committed to the repayment of bonds. displayed 2 graphs, explaining that of developito t Projects is used in the 3 -E MEMO TO: Steve Barg, Code Enforcement Officer MEMO FROM: Darrel Clark, Chief Building Official MEMO DATE: April 21, 1989 SUBJECT: 5755 Central Avenue N.E. An inspection was made on the detached 20' x 22' garage at 5755 Central Avenue N.E. The garage is about 30 years old. It is not dangerous but is in need of some maintenance. 1. The roof shingles are old and need to be replaced. 2. The facia and soffit should be replaced. 3. The visible rafter tails are rotting. 4. The 2" x 4" rafters are overspanned. 5. The bottom plates are starting to rot. G. The slab has one major crack. 7. The entire structure needs paint. The back of the garage has 3 courses of block, therefore to relocate the overhead door from the front to the back would mean the whole wall would have to be replaced. D� C /mh t PLANNING DIVISION 4 MEMORANDUM aNOF FroDLEY DATE: August 3, 1989 TO: Housing and Redevelopment Authority FROM: Barbara Dacy, Planning Coordinator SUBJECT: City Council Conference Meeting on Senior Housing On July 31, 1989, the City Council discussed potential policies regarding senior housing. The City Council wanted further analysis regarding the types of financial tools that are available to assist senior housing, and they directed staff to prepare an analysis matrix with costs and risks to the City for each option. The City Council also wanted further information as to the availability of Federal and State senior housing programs. Attached is a memorandum to the City Manager regarding the items we need to research for further Council consideration. BD:ls M -89 -448 tlKA-W COMMUNITY DEVELOPMENT 4 -A =�, DEPARTMENT CIWOF FMIX-EY MEMORANDUM DATE: August 3, 1989 TO: William Burns, City Manager FROM: Jock Robertson, Community Development Director - Barbara Dacy, Planning Coordinator SUBJECT: City Council Conference Meeting on Senior Housing In order to address the City Council's comments and questions regarding senior housing, we will investigate the following items (I have referred to the item number from your list of comments from the July 31, 1989 meeting): TASK 1. Obtain written explanations of federal senior housing programs (comment #8, #13, #14) and state programs. 2. Obtain written explanation of the "tax abatement" for Golden Pond project (comment #9). 3. Obtain explanation of the use of Columbia Heights zip code (comment #11). 4. Did we consider condominium projects in forming options for senior housing (comment #10) and have we inventoried other housing sites (comment #16)? Also, develop options to keep seniors in their house as long as possible (comment #20). 5. How many Section 8 certificates are available on an annual basis? Are there people with Section 8 certificates that cannot find housing in Fridley (comment #17)? 6. Develop list of financial tools and prepare an analysis matrix with costs and risks for each option (comment #12 and #18). 7. Obtain written statement from St. William's as to what type and what amount of assistance St. William's is providing (comment #19). Senior Housing Discussion August 3, 1989 Page 2 B. Obtain current rental policies and Section 8 certificate policies at Village Green. 9.- Mail survey report to HUD and MHFA to receive comments. 10. What type of assumption as to income can we make about 18% of seniors who want to move to senior housing (Mayor Nee's comment). We anticipate these items to be completed by the end of November 1989. BD /dn M -89 -444 i i unroF FRIDLEY PLANNING DIVISION MEMORANDUM DATE: August 3, 1989 TO: Housing and Redevelopment Authority FROM: Barbara Dacy, Planning Coordinator SUBJECT: City Council Conference Meeting on Central Avenue Corridor Study 5 On July 31, 1989, the City Council reviewed the Central Avenue Corridor Study. The City Council directed staff to return with a recommendation for items which could be implemented in the immediate future versus projects which should be considered for future goal setting sessions. The City Council agreed with the concept of having an overall plan to guide decision making. However, the Council was concerned about the cost of boulevard improvements. A number of the land use recommendations raised a significant amount of concern (relocating mobile home parks); however, the Council discussion identified other areas for more intensive review such as the future land use of the southwest corner of Osborne Road and Central Avenue. The Council agreed with the concept to pursue policies which would encourage removal of the junkyards within the corridor, but recognized that the HRA has- other immediate priorities for tax increment monies (Oman and Moore Lake Districts). BD:ls M -89 -449 i OUSING and REDEVELOPMENT AUTHORITY 6 COMMISSION MEMBERS: LAWRENCE COMMERS, CHAIRMAN DUANE PRARE VRGNIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: August 3, 1989 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Environmental Testing at the Rapid Oil 57th Place Site Several weeks ago I got an update on the testing progress at the Rapid Oil site at 57th Place /University Avenue. The geologist from Delta Environmental indicated to me that there is sufficient indication of potential ground water contamination that Delta Environmental is requesting three more testing wells. The first, on site; the second, on the far western side of the University Avenue right -of -way next to Hardee's; and the third, on the south side of 57th Avenue next to SuperAmerica. The geologist anticipates that the testing will be completed by the end of August, the final report with conclusions and recommendations for clean -up submitted to the PCA by the first of October. Staff recommends that HRA take no further action on the proposed redevelopment of the larger 57th Place area until the results of this report are available to us. In the meantime as we go to press, Mr. Jack Lemley of Ashland Oil has submitted an application for a special use permit for a new Rapid Oil facility on the existing Rapid Oil site. The facility does not include the single family lot to the east previously purchased by Rapid Oil. We will forward copies of the staff evaluation and recommendation to the HRA as soon as they become available. JR:ls M -89 -446 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (d 12) 571 -3450 FRIDLEY, MN 55432 EXT. 117 a :ITY IF FRIDLEY PUBLIC WORKS DEPARTMENT t 6431 UNIVERSITY AVENUE M.E. FRIDLEY, MINNESOTA 55432 FROM: City of Fridley Engineering Division TO: Honorable Mayor and City Council City of Fridley 6431 llnirersity Avenue N.E. Fridley; Nisnesota 55432 DATE: AUGUST 11, 1989 LAKE POINTE DEVELOPMENT MAINTENANCE PROJECT t187 STATEMENT OF WORK ------------------------------------------------------------------------------------------ - - - - -- *A Estimate No. 4 '�*iod 7 -15-89 to _yj-" Z. FR: ASTERS INC. WATERFORD PARK 515 HIGHWAY t 169 NO. PLYMOUTH MN. 55441 ESTIMATED UNIT QUANTITY THIS TOTAL CONTF.4:T ITEm QUANTITY PRICE UNIT ESTIMATE TOTAL AMOUNT ----------------------------------------------------------------------------------------------------------------------------- Ma:ntemance Services 1.88 .7-4,221.81 LUMP SUM 6.143 1.572 19,554.26 ----------------------------------------------------------------------------------------------------------------------------- TCTAL $19,55 4.26 VV\ V1 c A 4— 7-A S'ttlRlaRr: original Contract Amount 3'Z?s.Ys • WN Contract Additions Contract 116 CUM Revised Caetrad l~nt f� 55r4.-48 Value Completed To sate Amount Retained To Date (51) ;i :477.72 Less Amount Paid Previously p,932.42 AMOUNT DUE THIS ESTIMATE o'yd4,14 s CERTIFICATE OF THE CONTRACTOR I hereby certify that the work performed and the materials supplied to date under the terms of the contract for thi project, and all authorized changes thereto, have an actual value under the contract of the amounts shover on this estimate (and the final quantities on the final estimate are correct), and that this estimate is just and correct illid no part of the 'Amount Due This Estimate' has been received. Date By --- ----------------- - - - -- ---- - - ---- Contractor's Authorized Representative (Title) CERTIFICATE OF THE ENSINEER I hereby certify that I have prepared or examined this estimate, and that the contractor is entitled to payment of this estimate under the contract for reference project. CITY OF FRIDLEY, INSPECTOR ly Date ---- va-11 4-- Checked By tPPRP 1*A6 WAGErMP WA6 rwp Respectfully 8obmitted, is Morks ))Fleur F :A er ROYAL ELECTRIC CO., INC. 7401 Central Ave. N.E. MINNEAPOLIS, MN 55432 Phone: 784 -4646 INVOICE Ifl 0 City of Fridley �NOVOICE 54453 Attn: John Thompson 6431 University Ave. N.E. DATE July 21, 1989 r Fridley, MN 55432 TOOIPPEO Moore Lake Commons Shopping Center %� ORDER NO YOUR ORDER NO I SALESPERSON i TERMS i SHIPPED !IA PPD OR COL, 2460 Net 10 QUANTITY DESCRIPTION PRICE AMOUNT Installation of electric service for sprinkler system. 360 Ft. trench to NSP transformer. 1200 Ft. No. 8 copper wire installed. Meter - panel pedestal installed. I i i I Total Material Total Labor Permit Trencher Rental Amount Due � a F230 Grayarc. P.0 Box 2944. HaMord. CT 06104 -2944 Wheele. Group. Inc 1982 ORIGINAL 1,173 }23 964f63 20 50 63 60 $2,22196 / _p C LA I PIS SAT N'EETING) E � m Z O ao 00 IN. OD rn 00 kD jm N tD �D � i 0 ti � � �a C � � � ' N(D h~+ 00 n ko rt m INI t.0 ft pi Pi CO 00 00 N• ~' n m m cn a► E w �• a H HE py 0 N o l-4 N rt �C �C (� o N N a rt rfi�r U W O� OO m w �, r�pp ro rr En rr , C i17 pp!� 9 w lD f 1 Fh-i' (D N N N N ri U x �'N 0a a �p�, H �11 (ND rf r �• 1C i fD. En ;L t~o H N m Co :� 'b N R � �t = rt �. to � a rot to to �- sa m V V 4 ° 1, j C-4 y F-mmi / ° I h �. m N O n m w ' ��ro w w 'D r h i-n CA Id o `� I-n �-n N o o w 0 rx mLQ (D H 4 W O f�D ° N fD T 6-4 Fn O 3 34 m a r C m c O s N T O O Z m 3 C/) m 0 N 00 _ R zz QO C) J CD _ 0 a a 1 ` r - A s .5 a VIM � Q • :k pp loft .b St CL � y O Z O m O �d 40 48 06 ik of F o ,g.. AS PC .jr Ali 11.9 #1.8 V a it' : < ©� •� Val a I -CAR sayr.•�#`Ili� -�� aw't • �. �- +ter+.'- .�r..�r.i ..... � - i - • .e, Casserly Molzahn & Associates, Inc. 215 South 11th Street, Suite 200 - Minneapolis • Minnesota 55403 Office (612) 342 -2277 • Fax (612) 332 -4765 M E M O R A N D U M TO: City of Fridley Jock Robertson, HRA Director William Burns, City Manager David Newman, HRA Attorney FROM: James R. Casserly Mary E. Molzahn RE: Cinemark Project DATE: August 8, 1989 INTRODUCTION We have been asked to determine what subsidies might be available to assist Jerry Farrell with the development of a retail and theater project referred to as the Cinemark Project. In this project there is an additional problem of establishing an appropriate district in order to generate tax increments to provide assistance. This memo will briefly describe each of the problems and suggest possible solutions. TAX INCREMENT DISTRICT It is our understanding that the site for the Cinemark Project is not in the City's development program nor in a tax increment district. Normally this type of commercial project would necessitate the creation of an economic development tax increment Page 2 Y City of Fridley August 8, 1989 district. However, Section 469.176, subd. 4c of Minnesota Statutes, states that: "revenue derived from tax increment from an economic development district may not be used to provide loans, subsidies . . . or assistance in any form to developments consisting of buildings and ancillary facilities, if 25% of the buildings and facilities (determined on the basis of square footage) are used for the purposes listed in Section 144(a)(8) of the Internal Revenue Code of 1986 ." That section of the Internal Revenue Code lists among objection- able uses "the provision of recreation or entertainment." Since the theater is to comprise more than half of the square footage of the project, this provision clearly prohibits the use of an economic development tax increment district. The only other suitable type of district would be a redevelopment district as described in Section 469.174, subd. 10. It is our understanding that the project comprises a single parcel with one building. In order to qualify as a redevelopment district the building would have to be found to be "structurally substandard" which the statute in subd. 10(5)(b) defines as: "containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." Page 3 City of Fridley August 8, 1989 Due to the problems with the site, and because of the extended period of time during which the building has been vacant and from the observations of City personnel, we believe this building could be found to be "structurally substandard" and as a result a redevelopment tax increment district could be created. The Fridley development program could be amended to incorporate this site, as was done with the Onan Project, and then a tax increment district for this single parcel could be established and a financing program adopted. Once the appropriate approvals were obtained, the district could be established in 45 to 60 days. SUBSIDY OPTIONS Three of the four options described below the HRA has previously utilized; the fourth option, using a reserve or a debt service guarantee, the HRA has adopted the framework but has never utilized it. The options are as follows: 1 1. Grant. The grant has been used a number of times and has generally been limited to 5% of the market value of the property. The grant, like all other forms of tax increment assistance, can only be spent on statutorily eligible activities. If we follow past practices, the grant for this project would be approximately $135,000. Page 4 : City of Fridley August 8, 1989 2. Loan. This method of assistance was just used in the Kitt�man or Advance Project. Customarily the loan has been limited to 15% of the market value of the project so that in this project the loan would amount to approximately $405,000. The interest rate, deferred payments, term and interest abatement are all subject to negotiation. 3. Revenue Note. The most notable and infamous use of a revenue note has been the Lake Pointe Project. However, that project demonstrates the virtue of using such an approach. The HRA does not provide any money at the inception of the project but only pays with increments that are generated from the development activities. When the entire assistance, unlike Lake Pointe, is generated by way of a revenue note, there is no risk to the City. The revenue note allows for substantial flexibility in structuring the assistance. If we assume that the project needs approximately $400,000 of assistance, then the HRA can pledge to the developer the tax increments that are generated by the project. The three schedules that are attached are simply the present value, computed at a rate of 10 %, of the available tax increment based on differing 0 Page 5 City of Fridley August 8, 1989 assumptions of the square foot estimated taxes. Page 1 which is titled "Proposed Cinemark Project (taxes at $3.00 per square foot)" shows the original tax capacity of the existing site, the estimated tax capacity based on $3.00 per square foot, the estimated tax increment, administrative expenses computed at 5% of the tax increment and the available tax increment which finally generates the semi - annual present value and cumulative present value. If the assumptions are accurate, the spreadsheet demonstrates that $798,440 of available tax increment, at a present value rate of 10 %, generates a present value of $389,817 using ten years of tax increments. Page 3 demonstrates that if the taxes are at $2.75 per square foot the available tax increment drops to $692,010 with a resulting cumulative present value of $337,855. Page 4 illustrates the amount available if the taxes are at the higher rate of $3.25 per square foot. (Page 2 is the structure of a limited revenue note based on the Page 1 assumptions and assuming the HRA was willing to pledge the entire increment. The Cumulative Present Value (389,817) on Page 1 is the I Page 6 City of Fridley August 8, 1989 Beginning Balance of the note on Page 2 and the Available Tax Increment column on Page 1 corresponds to the Total Payment column on Page 2). A revenue note approach offers myriad variations. The developer need only receive a percentage of the total tax increment generated; the amounts can be weighted so that more value is received in the earlyyears or there can be a combination using grants and /or loans as part of the assistance. In other cities with projects that are generally considered more economic development, we limit the tax increment assistance to soil corrections, improvements and related infrastructure assistance. The developer pays for those improvements and when the City issues the Certificate of Occupancy it delivers to the developer a revenue note. The tax increment revenue note is becoming better understood by lending institutions, and developers are finding it easier to pledge the notes and receive loans from those institutions collateralized by the note. A revenue note also allows the City to avoid analyzing the credit worthiness of a project. a Page 7 City of Fridley August 8, 1989 In a growing number of cities with actual redevelopment projects a combination of grants and revenue notes are used to make the projects feasible. 4. Guarantees. Minnesota Statutes 469.176, subd. 4 states that tax increment revenues shall be used for the following purposes: to . by a municipality or redevelopment agency to finance or otherwise pay premiums for insurance or other security guaranteeing the payment when due of principal of and interest on the bonds pursuant to chapter 462C, sections 469.152 to 469.165, or both, or to accumulate and maintain a reserve securing the payment when due of the principal of and interest on the bonds pursuant to chapter 462C, sections 469.152 to 469.165, or both, which revenues in the reserve shall not exceed, subsequent to the fifth anniversary of the date of issue of the first bond issue secured by the reserve, an amount equal to 20 percent of the aggregate principal amount of the outstanding and nondefeased bonds secured by the reserve." About six years ago the City adopted a resolution allowing for the establishment of a reserve to help secure the issuance of debt authorized by the industrial development revenue bond statutes, now Sections 469.152 to 469.165. Only a couple of cities have established reserve systems to securitize their debt (the St. Paul Port Authority being the most notable). Because of the complexity of the system and the number of users needed to make if cost effective, it would probably not be prudent for @ Page 8 City of Fridley August 8, 1989 Fridley to establish such a program at this time. As the statutes suggest debt can also be securitized by the Authority paying for a letter of credit, insurance or other guarantees. The only legal obstacle is that the debt must be issued pursuant to Sections 469.124 to 469.134 (industrial development revenue bonds). The industrial development revenue bonds (IDB's) were normally issued to get the advantage of a tax exempt 4rate. The use of these bonds has been severely limited so that only a small number of uses actually qualify for tax exempt treatment. In the Cinemark Project, for example, a commercial use is expressly prohibited. To utilize this section, a developer would issue a taxable bond through the Authority and then the Authority would use tax increments to pay for security enhancement. Using tax increments to pay for security enhancements is not necessarily less expensive than using tax increments to pay for other authorized expenses. The HRA is not putting its revenues behind the project but is only paying for certain defined costs associated with the project, that is, the cost of a letter of credit, insurance premium or other security enhancement. It seems to us that the use of this provision is cumbersome and expensive. In almost all cases, the same result could be achieved by determining the cost of the credit N Page 9 City of Fridley August 8, 1989 enhancement and paying for it by means of a land write down or soil correction or infrastructure improvement. The use of a revenue note can help generate funds on an annual basis if this is the desired goal. Different projects and different sets of circumstances will result in different conclusions. However, for the Cinemark Project given our present state of understanding, we believe that the use of the guarantee would not be cost effective. CONCLUSION With our present understanding of the Cinemark Project, we recommend the use of a limited revenue note combined, if necessary, with a small grant or loan if feasible. To utilize the tax increment, we recommend the amendment of your development program to include the Cinemark parcel, the establishment of a redevelopment tax increment district and the adoption of a finance plan. JRC /db y MEM • 7 moo • ."D ori powd m • (WNP- 0 ov 'lam • • 00 0 — z ri � 3 r v s 5`� -IA al s _ IMa' on o• S C .. »+ 2i3.� � �'� co � �5' � �, E•5'� m aae te•Sd, - 5'� � I a III$] i C. 0 A oliggl 81 LrAl. 3 a EL ir m 9 . A =0 tic, to 11184tt Cr rA ' 5rR S� o $ io �2•� Ire: °1•ti° y Q� a �...aC ° 0 1 W (➢ !•� C. ff//II fwA ��pp 7 �' ++ ° � • .,' .y-1 p� "q S � .�.� 'J t9 •�- w � � � w � � ^• •C.'..y�EJ' (7 rA �O 7 'd0 Ci A y G a o dr1 �e°o 2 y ale s : t S� ?3 Sa� ,o�• Red' ^° r °' w.j °n B °-�'.� w Z ^yam Z 0"'�2�_7�Q�i'53��,� Cr y "yyob = ^°c'3ow.e"oy. = ^�n�cr�s27o3 o .Q CC f9 h A gyp• `. f9 p7 0 . ^ "' _ W •i '�' .7' (p G. E c 3.w �_.o d vw,'+n -�,� ^� ^• 1 o d .�aw+ZTO BOB N ZL �_ y ° yc� '8`54 FZdo 5 , Fla. ° '' a w _n �.^ ; O w � ��' C"7 • a�`` oa', y _c I� mow' S 3 s cue o a �.� w aco o p'w a�i a �w'c p wy.,'s x ? aO-o �+��� �19 C CF y _ �g c y iv o$ w o C�.Fj � $ a• w d ?;`< a�`� rg s o 5, ° �'� y' C O. Pte' , v; ^.a,+, c cr ° ��• a� ao w n S^ a o ' F w t� S c• �o�o '� w •o co Q c 'v CC g SEEM mt d A ar 5 v Qm� S p to 7 o � c�•� ="�3$ nos �. 3 ,a Y• � rN M RENDERING COURTESV OPUS CORP. s s �0 O r CA N d w I 0 a I no �' a ° a € €�a lop ' fit M I-To p ppgg g $ JillLL ILI lip I Pff alai I "RH IS tj S !e Q�1 WH gg� Hi �1j9.141E i I4� 4sd�s� gg g figg.. Yi �qa >Iu�Y es��i�� "$����8 fill gig gg yream eft -` ��az�;�fii zP ir ts �$� �g- ��8 �S 8y� p-- �� ��s � 4� � �tTp ��8 � y# •R p$� s8f' � �c r 6 I Is oREOu 1VILOPeh St. Paul Port Authority 1900 Landmark Tower 345 St. Peter Street St. Paul, MN 55102 Phone: 612 -224 -5686 Contact: William E. McGivern TTM OF OIV OPMM- OFFICE buildings approved or under construction, 350,000 sq. ft. INDUSTRIAL buildings approved or under con- struction, 100,000 sq. ft. sHOwrrECH buildings approved or under construction, 150,000 sq. ft. SPIM AMMM = Seffla S WMN TNI ►AmL Midway location, direct freeway access to both CBDs, all roads and utilities in. Ilk=TMAWM Opus Corporation, Midway National Bank, Impressions Inc., Northern Potato. WESTGATE OFFICE PLAZA University Avenue and Highway 280 St. Paul, MN TOdI ARIA: 12 acres CRIELOWHO PM Opus Corporation 9900 Bren Road East Minnetonka, MN 55343 Phone: 612-936-4570 Contact: Marc Anderson TTl1 OF OI119O/N OFFICE: 4 buildings approved or under construction, 350,000 sq. ft. SPIOAt AIM130 S AMp SN1111QS R rr= TIE PARR: Currently located in Midway area. WESTPOINT BUSINESS CENTER 13895 Industrial Park Boulevard Plymouth, MN TOTAL ARfU: 15 acres Vantage Companies 11095 Viking Drive Eden Prairie, MN 55344 Phone: 612-944-1000 Contact: Wade Lau TTMWOI9BO/N®t:OFFICE: 1 existing building, 16,413 sq. ft. INDUSTRIAL: 2 existing buildings. 63,550 sq. ft. sHOwrrecH: 2 existing buildings, 81,030 sq. ft. lltOAt AN�tif ANO SNNIOB R1111f� TM[ PARR: Free parking, freeway visibility, variety of suite sizes. NWOR TNIUM ETS, Waymouth Farms, Kloster Corporation. WILSON RIDGE 7500 Flying Cloud Drive Eden Prairie, MN TOTAL ARIA: 10 acres Ryan Properties Inc., general partner 900 Second Avenue South Minneapolis, MN 55402 Phone: 612-339-9847 Contact: Bill McHale TTP1 OF OlVBOP�- OFFICE: 1 existing building, 215,000 sq. ft. sHowrrECH: 1 existing building, 75,000 sq. ft. VWU ANHIM no SMVNIS R1ItIMN TMI pmIL Surrounded by natural lakes and woods, sand- wich shop, health facility, retail shops within development, underground heated parking. free covered- surface parking. MIRIORTMIANTS: Wilson Learning Center; Boeckermann, Heinan & Mayer; The Sand- wich Factory Inc. WINDSOR OFFICE PARK Long Lake Road and County Road B Roseville, MN TOML ARIA: 8 acres 0011111telvRom oI S�,o�le� Development Opportunities At I -694, University & Central Avenues: Agw- vaz� &Owzv';q� TARGET NORTHERN DISTRIBUTION CENTER ONE MILLION + SQUARE FEET 525 EMPLOYEES Fridley is alive with development opportunities for investors, developers and businesspeople. Call: Jock Robertson, Community Development Director (612) 571 -3450 for the future efG � nn �SV CIWOF FMOLEY Glacier Park Company 2000 Foshan Tower Minneapolis, MN 55402 Phone: 612 -782 -3010 Contact: Rod Dolan QI IM ANSRTIN3 ma Sam= Wmm Tw RAn: Excellent visibility from Interstate 35W, close to Rosedale Mall. WOODDALE INDUSTRIAL PARK Interstate 494 and Afton Road Woodbury, MN MIX ARIA: 132 acres Opus Corporation 9900 Bren Road East Minnetonka, MN 55343 Phone: 612-936-4444 Contact: Marc Anderson TTM OF OIYBOPOM' OFFICF: 13 existing; buildings, 350,000 sq. ft.; 1 building approved or under construction, 10,000 sq. ft. INDUSTRIAL: 3 existing buildings, 365,000 sq. ft. sHowrrECH: 1 existing building, 50,000 sq. ft.; 1 building approved or under construction, 23,000 sq. ft. RETAIURECREATION 2 existing buildings. 70,000 sq. ft. HOTEL 1 existing; building, 40,000 sq. ft. Uq= A2111 MS NO SOW= fNITNNI TO tARf✓t: Excellent visibility and access. NWORTELVM -3M, Red Roof Inn. Old Mexico Restaurant, Norris Creamery, Minnesota Farrn Bureau, State Farm Insurance, Wooddale Recreation Center, The Joint Commission on Allied Personnel in Oplithalmologc YANKEE PLACE 3500 Comser Drive Eagan, MN NIX AIRM 22 acres Blayne ofealfo BUSINESS Call about our new Corporate Art Leasing Program Winner of 1989 Decor Magazine Award of Excellence NOW OPEN IN GAVIIDAE COMMON Call 338 -1092 or 926 -1511 AFA#_ a 'A'A - 'M ELAYNE GALLERIES 6111 Excelsior Blvd. St. Louis Park 926 -1511 CORPORATE REPORT M INN E SOT A 119 ALTAS DEVELOPrfn corpor BUSINESS AND REAL ESTATE DEVELOPMENT lff�jm PROPOSAL OF ATLAS DEVELOPMW CORPORATION FOR DEVELOPMENT AND CONSTRUCTION OF A RETAIL /HOUSING DEVELOPMENT IN FRIDLEY, MINNESOTA 1. INTRODUCTION. We are pleased to submit this proposal to the City of Fridley ( "City ") to assist the City in the development, construction, marketing and management of a retail and housing development ( "Project ") on the property located at the southwest corner of University Avenue Northeast and Mississippi Street Northeast. Atlas Development Corporation is a joint venture between Dunbar Development Corporation and Ron Signorelli. We would serve as Project Coordinator to assist the City in the formulation and realization of the Project. We have significant development experience and expertise in the areas of regulatory and governmental approvals, structuring of development financing, coordination of architectural and engineering design, construction supervision and marketing and management, all of which will enable the Project to be a success. We also have unique experience in utilizing essential function bonds which we are proposing as financing for the Project. The Project and essential function bond financing are explained in greater detail below. 2. PROJECT DESCRIPTION. Our initial concept for the Project would include approximately 160 resi- ,de=_i_ al units3 360 parking stalls, 160 of which would be underground and enclosed, and 50,000 square feet of retail suace. The retail portion of the Project would be located at the corner of the Property with good street access and visibility and the residential units would be set back further on the Property for a more secluded and private setting. The income restriction currently associated with the essential function bonds program would enable the Pro ect to provide qua y, mar et -rate units. This conceptual description is obviously very preliminary. Prior to finalization of the design concept, we and DDC, together with the City would spend considerable time with a selected market analyst and architectural firm to ensure that the Project best addresses the market needs and enhances the community. 1128 Harmon Place • Suite 304 • Minneapolis. MN 55403 • (612) 338 -7640 Proposal of Atlas Development Corporation August 18, 1989 Page 2 3. PROJECT STRUCTURE. We are proposing the use of essential function bonds as the financing for the Project. They are formally known as the Multifamil Governmental Housing Revenue Bond Program. Under the program, the City y _ meat entity ou own the Project and would finance all of` its rdevelopmentru costs through the issuance of x exempt bonds. Debt service payments on 100% of the boa s are asure t rough a HUD co- insuran Program, HUD insures approx to ram. Under this insures approximately y 85 —gin an approved private - insurer pproximatel 15% of the debt service amounts. Therefore, there is minimum risk to the City for bond debt service payments. The advantages for the Project and City by utilizing essential function bonds are simply stated as follows: 1. Because the bonds will be tax exempt for federal income tax purposes, a lower interest rate will be obtained on the financing. 2. Because the bonds are essential function bonds, the interest paid thereon would generally not be a tax preference item included in the calculation of a bond holder's alternative minimum tax, again permitting a lower interest rate on the financing. 3. Because the City is the owner of the Project, it will make Da eats state taxes which will be less than the taxes on comparable Privately owned developments. s obv ously helps to hold down operating expenses for the Project, which reduces the risk of o eratin shortfalls and ---its lower rents for the tenants. 4. Because the City is a government entity and exempt from sales tax requirements, the urchase of erials used to build the Project will be tax exempt. This savings accrues directly to lower Project costs and, there o e, lower rents. 5. Because the City is the owner of the Project, at the time the City determines it is appropriate to sell the Project to an institution or other member of the private sector, it will enjoy the benefit Of any appreciation on the value of the Project. The bonds may be prepaid in the event of sale of the Project. The risk to the City in owning the Project would be its responsibility to fund an unanticipated operating shortfalls. budgeted in the b initial amount would be- period, but the City o f durin the initial lease -up budgeted deficit was exhaustedwould arise ells continued after that 1. minimized by the reduced a The likelihood of these shortfalls will be th P 3►ments in lieu of real estate taxes and through aggress ve, per o can3'� Tax increment funds from other redevelo meat n management be pledged to reduce any shortfalls. p projects could also Proposal of Atlas Development Corporation August 18, 1989 Page 3 4. PROJECT COORDINATION. Because the City may not have the practical expertise or the staff to effectively develop, market and manage the Project and implement the essential function bond financing, it is recommended that the City hire Atlas Development Corporation as Project Coordinator. We have worked extensively with Miller Schroeder Financial and the Washington County HRA to implement an essential function bond program similar to the one described in this proposal. In addi- tion to arranging the financing, we would also be responsible for advising the City regarding the acquisition of the land, engineering and design, zoning compliance, construction, marketing and management for the project. We, as Project Coordinator, would consultant and would have no ownership for we would be tied to achievement o to provide adequate incept ve or us t 5. CONCLUSION. be compensated on a fee basis as a interest in the Pro ect. Compensatfon certain performance standards so as ensure a quality Project for the City. The increasing difficulty of the private sector to provide quality, yet affordable, housing, makes it necessary for the City to take affirmative measures to ensure that an adequate supply of affordable housing is available. This proposal attempts to provide the City with a program to provide those housing opportunities within the community. The program is a complicated one and we encourage the City to engage knowledgeable bond counsel to advise the C?t� on the gal �ntracacies of the essential function bond p�oeram. We request the opportunity to participate in any future presentations to City officials concerning the Project. We will contact you within the next week to answer any questions or comments you may have concerning the proposal. We look forward to working with the City to realize this Project. .E 4 iG MEMORANDUM TD: Jock Robertson, Executive Director -HRA ram: John G. Flora, Public Works Director DATE: July 25, 1989 SUBTWr: Municipal Ramp Construction wry Update ORIGINAL CONTRACT AMOUNT Additions and Changes P. R. = TTII�! 5 TV monitoring 11 Lawn sprinkling sleeves 19 Stairway enclosure 32 Additional light pole bases 33 Chain link fence 36 Tree planter 74 Boulevard curb island 74A Concrete walkway waterproofing 82 Exposed aggregate islands 83 Concrete insulation on bridge 87 Sidewalk modifications 88 Curb modifications /insulation 89 Entrance landing 94 Drainage swale Landscaping contract Signage of ramp Sealing of concrete Ramp adjustment Asphalt contract 1941 Core Drill 1943 Ramp beam packets 1945 Walk demolition 1946 Snow removal JGF /ts PW89 -199 $ 8,975.00 3,754.00 3,900.00 15,220.00 3,859.00 2,638.00 4,053.00 5,447.00 2,307.00 12,440.00 3,956.00 748.00 5,009.00 835.00 56,132.00 28,350.00 5,000.00 29,202.00 12,565.00 305.00 2,000.00 2,116.00 425.00 �� •• 11111111 F-771 $ 750,878.00 S 209,236.00 ��E Y Proposal Request #36 The landscape concept as designed by the landscape architect required a cast -in -place planter for the required plantings needed at gridline G between grids 14 and 15 over the mechanical room #64. A prefabricated 5'x S planter was unavailable because of its size. Therefore, we cast -in -place a 5'x 5, 36" inch deep planter with 4" thick sidewalls and provided drain tile, waterproofing, and insulation as required. $ 2 , 636. 0 0 Proposal Request #74 and 74A Concrete curb at the south elevation of the parking facility between the parking facility and adjacent asphalt parlang lot were changed from a B64 to a B618. This provided a boulevard type curb island with removable bollards at 10' on center including 3/4" diameter chain barriers strung from bollard to bollard. A credit for the original curb was provided by Park Construction including a 2' wide strip of bituminous that was replaced with the curbins. This credit was allowed at the time the asphalt work was bid in the spring. All of these changes were requested by the Owner. 9, 500-00 Proposal Request #82 This item was requested by the Owner and Architect to provide for exposed aggregate concrete finish to cap the parking ramp boulevards. Original documents showed this as crushed rock; landscape drawings show this area to be a brick paver material. The final conclusion was to handle this area with exposed concrete aggregate. 2,307.00 Proposal Request #83 Pedestrian bridge changes were required after further clarifications of the pedestrian bridge spanning the alley between the Fridley Civic Center and the Target parking lot as described by Bakke Koppe. This work included the addition of foundation walls, footings and grade beam including reinforcing steel. The work also included the removal of the northern span of precast plank-, removing curbs and foundation wall that supported the northern end of the existing precast, removal of planting bed materials, cutting riglets in walls for waterproof membrane, providing tapered insulation at roof of police garage, relocation of an existing light fixture, and the addition of one section of horizontal hand railing to meet OSHA code for hand railing height. The reinsulation of the garage roof and relocation of the existing light fixture were requested by the Owner. $12 , 440. 0 0 Proposal Request #87 Replaced sidewalk and pavers in plaza area of the colonnade sidewalk which was displaced due to excavation for the addition of the south colonnade footing and piers required to support colonnade steel. This proposal request was required due to the lack of coordination by the former Construction Manager to provide sheeting and shoring to protect additional sidewalks areas when excavation was in process. 3,956.00 Proposal Request #89 Owner requested changes to curb line plus exterior concrete stoop at police entry, door 051B; including waterproofing and insulation of the pedestrian bridge and grouting the precast plank next to poured curb area. 5, 009. 0 0 Proposal Request #94 Delete the planting beds and shrubbery along the south elevation of the building at the south vestibule entry and to provide PVC sleeving for lawn irrigation system and provide concrete to fill in between sidewalk and building. A credit for the planting beds, shrubs, mulch and irrigation heads were provided under the landscape bid package. Owner requested item. 8 35 . 0 0 (b) Conveyance Set Aside. At the time of the con- veyance referenced in Section 3.2(a) hereof, the Authority shall set aside $400,000 (the "Reserved Funds "), which funds shall remain funds of the Authority, subject to this Agreement. If the Authority issues the Certificate of Completion for Parcel A, $120,000 of the Reserved Funds shall thereupon be paid to Northwest Racquet, and if the Aut ority issues Certificate o tic for Parcel B, $280,000 of they Reserved Funds shall thereupon be paid to Moore Lake Associates, a men s s a en c itute a write o of the cost of Parcel A and Parcel B, respec- tively. If the Certificate of Completion for Parcel A and /or for Parcel B is not issued within 18 months of the date hereof, the Reserved Funds (or the portion thereof not theretofore paid to the Company pursuant to this Agreement) shall no longer be subject to any provi- sion of this agreement, and the Authority may thereupon use the Reserved Funds for any other of its lawful uses. (c) Costs. Unless otherwise mutually agreed by the Authority and the Company, the execution and delivery of all deeds shall be made at the principal office of the Authority. All deeds shall be in recordable form and shall be promptly recorded by the Company. The Company shall pay all costs for recording such deeds, if any. 3 - 2 ACKNOWLEDGMENT OF RECEIPT OF PAYMENT Norwest Bank Minnesota, National Association, hereby acknowledges receipt of the sum of $280,000.00 from the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota and hereby releases said Housing and Redevelopment Authority from any further obligations pursuant to that Acknowledgement of Assignment and Agreement to Pay Reserved Funds dated September 6, 1988. NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION By Its a - r\ S0CLA I.S July 24, 1989 Mr. John Flora Director of Public Works City of Fridley 6431 University Ave. N.E. Fridley, MN 55 RE: Use of Fridley Parking Ramp Structure for other than designed purposes and intent. Dear Mr. Flora: Based on the recommendation of our consulting structural engineers, we must advise the City against using the post- tensioned concrete upper deck of the new parking ramp facility for anything other than the purpose for which it was designed. More simply stated, this structure was designed, engineered, and constructed to serve as, and be used as an all weather, year around, parking structure, which could accommodate a maximum number of cars and light utility vehicles not to exceed certain height or weight restrictions. This structure was not designed or engineered to function as a dance floor, rally or convention floor, or a deck to accommodate large numbers of people engaged in harmonic, syncopated, or disparate activities. These types of activity, loading, and stress factors require quite a different set of performance and movement design variables and connections not taken into account during the engineering of the parking structure. We recommend that all activities not strictly related to the use of your ramp as a parking facility, be prohibited from taking place on the ramp. For dances, concerts, pageants, plays, picnics, games, parades, athletic events, and all other types of organized or unorganized community, school, and civic functions, we recommend you use the plaza, or the street, or other parking facilities. Thank you for your cooperation in this Issue. By following these suggestions we think you can expect many years of service from your new ramp, without the danger of premature or excessive wear on the structure, or the danger of structural failure on any of the ramp elements. Sincerely, I "Lti n T. Rall, Vice President Director of Construction Administration Boatman & Associates, Inc. Attachment. o r t h ) n it S t r v r• I V i n n v ,i p I i. 1.1 I n n i• , t> ' ,l , .i ,i I i' 1_-,," cc: Dennis Goodno, BKBM Professional Engineers Tom Downs, BKBM Professional Engineers David Kroos, Boarman S Associates, Inc. Bill Burnes, City of Fridley Daryl Gark, City of Fridley John Thompson, City of Fridley ✓lock Robertson, City of Fridley RKPROFESSIONAL ENGINEERS 219 alu North Second Street Minneapolis, MN 55401 401 (612) 333 -7101 July 25, 1989 Mr. Jon Rall Boarman & Associates 222 North Second Street Minneapolis, Minnesota 55401 Re: Fridley Plaza Ramp BKBM Job No. 88- 0560 -K Dear Jon: On Friday, June 16, 1989, during the Fridley Forty Niner Days celebration, I was called at home about 10:15 p.m. by John Flora regarding vibration occurring on the ramp upper level. As part of the celebration, a live band was performing and the upper level of the ramp was being used as a dance floor. The vibration was due to the dancing motion of the crowd. At the time, I did not believe that the situation was sufficient to clear the ramp surface of the band and party goers. We at BKBM Engineers do feel, however, that due to liability to both Boarman & Associates and ourselves, the City of Fridley should be made aware that the ramp was designed as a parking structure and its future usage should be limited to that purpose. We cannot be held responsible for damage to the structure or potential threat to human health in cases where it is used otherwise. If you have any questions regarding this matter, please call me. Sincerely, BAKKE KOPP BALLOU & McFARLIN, INC. 4--Vt" /mil Dennis G. Goodno, P.E. DGG /glm BAKKE KOPP BALLOU & McFARLIN, INC. July 27, 1989 Mr. Jon Rall Boarman & Associates 222 North Second Street Minneapolis, MN 55401 Re: Fridley Plaza Ramp BKBM Job No. 88- 0560 -K Dear Jon: Thank you for accompanying me to the site yesterday morning to observe the cracking on the sides and bottom of the two post - tensioned ramp beams. The beams are located along grid lines 15 and 23 on the south half of the parking ramp. They are labeled as beams PTB9 and PTB7 respectively on our structural drawing S9. We have determined that the horizontal beam cracks, which you and I observed, are due to delamination of the concrete below the post - tensioning cables and beam reinforcement. This condition is usually caused by inadequate consolidation of the concrete around the reinforcement during the concrete pour, creating a plane of weakness at the location of the beam reinforcement. The delamination will not affect the structural integrity of the post - tensioned concrete beam. The concrete beam should be patched for aesthetic and fire protection purposes. We would recommend that the loose concrete in the damaged area be .removed and repaired with a patching material such as SikaTop 123 by Sika Corporation, or Thorite by Thoro Systems. We would also recommend that this patching be done prior to September 15, 1989 in order to comply with manufacturer's temperature restrictions during product application. Please be advised that additional cracking could still develop in areas of similar concrete quality. If you have any questions regarding this matter please call me. Sincerely, BAKKE KOPP BALLOU & McFARLIN, INC. A$,-" A lvr� Dennis G. Goodno, P.E. cc: John Flora, City of Fridley Tom Sackett, Kraus- Anderson /Mpls Chuck Ballou, BKBM Tom Downs, BKBM BAKKE KOPP BALLOU & McFARLIN, INC. a ll PROFESSIONAL ENOiNEERS 219 ph Second Street a� Min Minneapolis, MN 55401 (612) 333 -7101 Thank you for accompanying me to the site yesterday morning to observe the cracking on the sides and bottom of the two post - tensioned ramp beams. The beams are located along grid lines 15 and 23 on the south half of the parking ramp. They are labeled as beams PTB9 and PTB7 respectively on our structural drawing S9. We have determined that the horizontal beam cracks, which you and I observed, are due to delamination of the concrete below the post - tensioning cables and beam reinforcement. This condition is usually caused by inadequate consolidation of the concrete around the reinforcement during the concrete pour, creating a plane of weakness at the location of the beam reinforcement. The delamination will not affect the structural integrity of the post - tensioned concrete beam. The concrete beam should be patched for aesthetic and fire protection purposes. We would recommend that the loose concrete in the damaged area be .removed and repaired with a patching material such as SikaTop 123 by Sika Corporation, or Thorite by Thoro Systems. We would also recommend that this patching be done prior to September 15, 1989 in order to comply with manufacturer's temperature restrictions during product application. Please be advised that additional cracking could still develop in areas of similar concrete quality. If you have any questions regarding this matter please call me. Sincerely, BAKKE KOPP BALLOU & McFARLIN, INC. A$,-" A lvr� Dennis G. Goodno, P.E. cc: John Flora, City of Fridley Tom Sackett, Kraus- Anderson /Mpls Chuck Ballou, BKBM Tom Downs, BKBM BAKKE KOPP BALLOU & McFARLIN, INC. Commercial real estate/.sr zf489 Hewlett - Packard is- nearer to new home Hewlett- Packard Co. would like to includes Minnesota, the Dakotas, select the site for a new 150,000- Iowa, Nebraska, Missouri, Kansas, square -foot Twin Cities headquarters and parts of Wisconsin, Illinois, and building this week. - Kentucky. However, reaching a conclusion may take up to 30 days, said Kent Carl- son° a leasing agent with J.R. Ga- brielson Co., HP's Minneapolis - based broker for the deal. Hewlett- Packard, a computer and electronics manufacturer based in Palo Alto, Calif., lists three vacant parcels at undisclosed locations and an existing office building among its options. Development of a new building has been planned, but the existing building just recently went up for sale, and a purchase or lease is being studied, said Don Hamilton, HP's regional construction specialist. Hewlett- Packard will try to pick a : site when local officials meet this week with Gabrielson agents and rep- o resentatives of LaSalle Partners, a Chicago -based advisory firm which has analyzed the final choices. But EP's top headquarters brass must approve the deal, and will probably do so before Oct. 31, the end of its fiscal year, Hamilton said. Developers view the deal as a possi- ble build -to -suit opportunity that comes along rarely in today's sluggish commercial real estate market. Hamilton said the company might ` even consider other existing build - - ings if the deal were right, but added that he hated to open a "Pandora's Y box" of offers... What's certain is HP's desire for a ''%w- "signature" facility to.enlmce its im- tage in the Twin .Cities market and .;•;other parts of the Midwest. Hewlett- Packard.- maker of Apollo computer work - stations, . LaserJet computer printers* medical monitor- ing equipment and calculators, among many other products — sees itself. as a blue -chip company, and "We want the facility to represent that," said Hamilton. He said the company seeks a "Class A" building one with a modem design and first -class building materials. HP currently owns and .occupies a one-story, 87,300 - square -foot build- ing at 2025 Larpenteur Av. in Falcon Heights, near the University of Min- aesota's St. Paul campus. The build- ing houses sales and service offices for HP's Great Plains area, which The territory is "part of. Hewlett - Packard's Chicago -based Midwest re- gion, one of the company's four na- tional regions. The Midwest region produced $1 billion in sales during the last fiscal year, about 10 pgrcent of HP's total revenues, said Hamil- ton. Midwest sales growth has been steady, rising from $34 million in 1970 to $272 million in 1980 and $718 million in 1984; Hamilton said. By mid -1991 the .Twin Cities office expects to occupy. approximately 120,000 square feet of a multi -story building, with additional space re- served for expansion, Hamilton said. The company will study all altema- tives before deciding whether to lease or buy the building, and may craft an arrangement with elements of both options, Hamilton said. Also, HP has not ruled out allowing other tenants to lease space at the building, he said. After starting with 50 potential sites last fall, Hewlett - Packard narrowed its list to six last May, and to three by mid -June. All sites are currently con- trolled by developers, said Hamilton. Carlson said all three land sites "have interstate (highway) visibility" .but would not be more specific. Hamilton declined to name the exist- ing building and wouldn't say wheth- er any of the sites were within Min- neapolis or St. Paul city.limits. . A CLG A "+ A m Q m g .O gA •p A -• V1 = c. ^ S ^ os� cZ aaa. 000�ur'�},I Rio =cnoo �awo. � � �.`� FA, c,F � �o.t =� o'•R °c� �3p cn = iL y t�iit•Zi =�t• -•ma y ^� •'�0oOl �� ' Sew -3* O c. 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