Loading...
HRA 11/09/1989 - 6401/ I AYa� Amy �`,�;,11 I _:_ .� "'.;' , \r ti , `I ,zz� i � :i '� b k 'mac •t }'k. ily '4` 'Ly k y, _ ttti .]r_..d �' 4X�% u :q t � �y aJ Y- , - y 1 xn " ti s' »R• Ay., , ; }«� mod^ 6 j � R ' �' k . - � a * g w , . 0,� QTY MMMAGER & HM DIRECI�OR . :t i 4 X o- A y 7 x i_ ..: Lt t a _ + "° 3 Sn-'k 54r _ ryi4' , $ j ',,� .I , " , " i� 6 _�� .1, x Gm's "a ) �t gip. ¢r ,, 11 I tyre 'Y .. •.: -; F.. Y ZYX �3 I, Ei �1 y.7+. 5 .W 1 y - F �`t } , y _ , a ,yyt 1. t 1 �' � � � 9 .Y , '�+4 t RIS a ­­­­_­`-­, � 6 , " , _ I � .'' _'-fF I :�,:�.��:6. " � � _ , z­ ith", — i __ : -­1-, : - I , _. , I �:­ , — 11 -, , n " , , n �1, � 1. - - ` �� � - 1 __ �� - �, - ­ � } c S. 'p }� '. '. X X�". S d } i -`� 5 Ys, k„ ' S `,, e ,F. y 3r i t' v - 3 " i ggI� � y { . F r r ti t , t H 5t . ' • r _ o- = d S v n { F ' n G, ' . F �I4 ': tL w 1 �, a�� M� i :', 4 S 't - Y`�` - - f "CS k oil - �. s.i:..8,� . ,-$ _ �. �. =mss ..'S _c _ �- K. X,.i .Xl:. » ,. �. __. +1: , i .... .:. _mow .� .. w4 ..: . . ,_ 66 _ e City of Fridley A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MTG. NOV. 9, 1989 7:00 P.M. Location: Fridley Municipal Center 6431 University Avenue N.E. City Council Chambers CALL TO ORDER: ROLL CALL: APPROVAL OF MINUTES: October 12, 1989 CONSIDERATION OF PROPOSALS FOR REDEVELOPMENT OF SOUTHWEST QUADRANT OF UNIVERSITY & MISSISSIPPI BY: ATLAS DEVELOPMENT CORP BOISCLAIR CORPORATION RON CLARK CONSTRUCTION, INC . . . . . . . . . . . . . .1 - lE CONSIDERATION OF TERMS FOR A n REDEVELOPMENT AGREEMENT WITH SBF DEVELOPMENT CORPORATION . . . . . . . . . . . . . . . .2 - 2C CONSIDERATION OF PAYMENT OF RICE CREEK ROAD IMPROVEMENTS . . . . . . . . . . . . . . . . 3 - 3F INFORMATION ON 57TH PLACE REDEVELOPMENT ALTERNATIVES . . . . . . . . . . . . . . . . .4 - 4F INFORMATION ON PRELIMINARY HRA BUDGET FOR 1990 . . . . . . . . . . . . . . . . . . . .5 ESTIMATES: NATURAL GREEN, INC. - LAKE POINTE MAINTENANCE. . . . .6 GREENMASTERS, INC. - FINAL ESTIMATE FOR LAKE POINTE MAINTENANCE PROJECT NO. 187 . . . . . .7 - 7D CLAIMS. . . . . . . . . . . . . . . . . . . . . . . . . . o8 OTHER BUSINESS ADJOURNMENT CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 12, 1989 CALL TO ORDER: Chairperson Commers called the October 12, 1989, Housing & Redevelopment Authority meeting to order at 7:05 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, John Meyer, Duane Prairie Members Absent: Walter Rasmussen Others Present: Jock Robertson, Executive Director of HRA Dave Newman, HRA Attorney Steve Billings, City Councilmember Jim Casserly, Casserly Molzahn & Associates Jerry Farrell, SBF Development Corp. Bob Boisclair, Boisclair Corp. Dick Bienapfl, Boisclair Corp. Ron Clark, Ron Clark Construction David Sebold, Ron Clark Construction Sid Inman, Publicorp Inc. Hugh McCloud, rep. SW quadrant land owners APPROVAL OF AUGUST 10, 1989, HOUSING & REDEVELOPMENT AUTHORITY MINUTES• MOTION by Mr. Prairie, seconded by Ms. Schnabel, to approve the August 10, 1989, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. CONSIDERATION OF OUTLINE FOR CREATING A TIF DISTRICT AND FOR A REDEVELOPMENT AGREEMENT WITH SBF CORPORATION: Mr. Robertson stated the SBF Cinemark proposal for redevelopment has gone through the City Council with all the permit procedures. On August 4, 1989, staff received a request from SBF for the City to consider assistance with tax increment financing because SBF had been unable to obtain their primary financing. At the August 10, 1989, meeting, the HRA authorized staff to proceed with a financial analysis. Under discussion at that time was underwriting a part of the SBF's financing. Staff asked Jim Casserly to analyze f HOUSING i REDEVELOPMENT AUTHORITY MTG., OCT. 12, 1989 - PAGE 2 that. Mr. Casserly responded in a memo that a loan guarantee would not be cost effective, and he recommended instead a limited revenue note as a no -risk option. Mr. Robertson stated Mr. Farrell has informed staff that the second mortgage option is really unavailable because Trustco, their Canadian equity partner, has already taken a second position on the project. Mr. Robertson stated staff has discussed with Mr. Farrell either the 3 -5% grant for land write -down or essentially a "pay as you go" proposal. Staff is recommending the "pay as you go" proposal in which the HRA would create a redevelopment district and enter into a development agreement to pay back the developer a limited revenue note of approximately 2/3, a conservative estimate of the total tax revenue the project can generate over a 3 year period, for a total of approximately of $250,000. Mr. Robertson stated the Appeals Commission, Planning Commission and City Council approved several permits for the project. When the Planning Commission and gity Council were informed that Mr. Farrell was now asking for financial assistance, they requested that those permit approvals and some of the questions about the n site plan be re- reviewed. Mr. Robertson staff has met with Mr. Farrell, and he has submitted a revised site plan staff believes will address most of the problems raised by the Planning Commission and City Council. However, if the HRA wishes to proceed with the creation of a tax increment district, staff recommends the approval be contingent upon Planning Commission and City Council approval of the revised site plan. Mr. Jim Casserly stated this is really quite identical to the Lake Point concept. Of all the different methods of providing some assistance, this method will probably have the least risk for the HRA. It requires positive action by the developer to get the return. Mr. Meyer asked what happens if the developer gets the project going, but has to leave the project one year later, where does that leave the HRA? Mr. Casserly stated the note is designed so that if there are no taxes being generated, nothing is paid. Mr. Commers stated the questions facing the HRA are: Philosophically, is this the kind of project that deserves some priority right now? What will it do for the community? Should the HRA offer this type of assistance on this kind of a project? 1__� HOUSING & REDEVELOPMENT AUTHORITY MTG., OCT. 12. 1989 - PAGE 3 Ms. Schnabel stated another issue is how this fits into the long range plans for spending the money they have available and where their emphasis is going to be. Mr. Commers stated this project would stand on its own. As he understood it, it will fund itself in three years and presumably at that point the balance of the increase in increment would go to the taxing authorities. So, it is not a long range thing which is good. It will turn over some additional tax dollars in a short term period of time. That is the real positive thing about this project. Mr. Robertson stated it would be a redevelopment district, not an economic development district, in that the property qualifies as a redevelopment project. Mr. Commers asked staff's thoughts on the project. Mr. Robertson stated the actual TIF would be self- contained on just this site, but they would create a larger redevelopment area to include some older properties to the north, west, and south. They have not done a feasibility study on it yet. Mr. Casserly stated the HRA already has a redevelopment program. All they do is expand the boundary lines of the existing program and amend the existing program and create a very small tax increment district, probably just for this site. Mr. Robertson stated this is sir." ar to Tax Increment District #9 that was set up for Onan Corporation. Mr. Meyer stated one negative thing is that the current building that will be torn down is a building that is more flexible for other kinds of uses, whereas a theater is not a easily convertible building for other uses. Mr. Farrell stated that is true; however, there have been quite a few proposals for this site as it is, and no one has been able to do anything. He stated structurally the building is alright, except for the asbestos. This project has seemed to work out the best for this site. Mr. Robertson stated staff has done some research on the building, and the building has been occupied less than 25% of the time over the last 7 -8 years. The building inspector has looked at the building and, in addition to the roof, it does not meet the present energy code. The roof insulation, as well as the asbestos, the boiler, the unit heaters and the air conditioning all do not meet code. HOUSING is REDEVELOPMENT AIITHORITY MTG., OCT. 12, 1989 - PAGE 4 MOTION by Ms. Schnabel, seconded by Mr. Meyer, to authorize staff to initiate the process of creating a redevelopment tax increment financing district to include, not only the Cub Foods site, but possibly the older commercial properties on the north side of Osborne Road to the corner of Osborne and University Avenue, based on a limited revenue note approach for a total of $255,000. The final agreement is to be contingent upon reapproval by the Planning Commission and City Council. In a report from the Building Division inspectors, the following was documented: 1. Repair damage to the electrical panel 2. Repair all exit lights 3. Repair all exit doors 4. Repair leaks in the roof 5. Repair /replace the floor tiles (asbestos) 6. Following items do not meet the Energy Code: a. roof insulation b. boiler C. unit heaters d. air conditioning 7. The building was occupied less than 25% of the time for the last 7 -8 years. Mr. Casserly stated it is very important that the HRA, City Council, and staff consider this as a redevelopment project. That is because there are specific exclusions in state law about using tax increment for theaters and other uses. The reason for creating this tax increment district is to involve themselves in a redevelopment activity, not to provide assistance to a theater activity. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Robertson stated representatives from Ron Clark Construction and Boisclair Corporation are at the meeting, and he would recommend the HRA move item #5 to item #2 at this time for the convenience of these representatives. 2. INFORMATION ON RON CLARK CONSTRUCTION ATLAS DEVELOPMENT, AND BOISCLAIR PROPOSALS FOR THE SOUTHWEST QUADRANT OF UNIVERSITY & MISSISSIPPI STREET: Mr. Commers asked about the Atlas Development proposal. Mr. Robertson stated that when he called representatives from Atlas to remind them of this HRA meeting, he was told that there had been a miscommunication and that they had not planned to attend this meeting. Several principles are out of town. Representatives from Atlas asked that consideration of their proposal be held over until the November 9, 1989, meeting. e HOUSING & REDEVELOPMENT AUTHORITY MTG., OCT. 12. 1989 - PAGE 5 Mr. Commers asked if Atlas has provided a financial analysis. Mr. Casserly stated Atlas' proposal was to have the HRA enter into a governmental housing bond that has some very different characteristics. Mr. Robertson stated Atlas submitted a 5 page outline which was included in the packet. Staff did not enter into a financial analysis because staff did not know if the HRA even wanted to go in this direction, because it is so drastically different than anything the HRA has done before. Mr. Commers stated the HRA is familiar with that kind of proposal, and it is not anything the HRA is really interested in doing. Ron Clark Construction Mr. Robertson stated that on August 10, 1989, the HRA authorized staff to undertake a preliminary analysis of the Ron Clark Construction proposal to develop approximately 50,000 sq. ft. of retail space and three 100 -unit apartment complex. The important point here is that the Clark project is very comparable to the Tanurb project. The Tanurb project was unable to proceed because they were unable to secure an anchor tenant. Both the Clark project and the Tanurb project have approximately $1.6 million available for developer reimbursement because of the value. Mr. Robertson stated he feels the Clark project is essentially close to the HRA's criteria of "breaking even ". There are some details that have to be worked out. Mr. Robertson stated staff met with Mr. Dave Sibold and Sid Inman, the consultant, on Tuesday, October 10, and Mr. Sibold and Mr. Inman have concluded that, given the two analyses that Mr. Casserly has run, they are very close in terms of the feasibility of the project. Mr. Sibold, Mr. Inman, and Mr. Ron Clark are at the meeting. Mr. Sebold stated Ron Clark Construction has been in business for 15 -17 years as a builder developer of residential projects, single family, multi - family, and townhouse projects and also have done some for -rent multi - family projects. Over the last seven years, they have become more involved in commercial construction development as well as residential. In that seven year period they have remodeled or built over one million square feet of commercial retail and industrial property. within the company, they not only provide the construction services for development, they also do their own property management and leasing. HOUSING & REDEVELOPMENT AUTHORITY MTG., OCT. 12, 1989 - PAGE 6 /,_� Mr. Sebold stated they are confident that a retail development on this site will be a success. They have done their homework on rental housing and feel 100 units of for -rent, probably a townhome flat concept, would be most successful for them. The townhome project would be on the west portion of the site and the retail project would be in a "L" shape facing University /Mississippi. Mr. Meyer asked Mr. Sebold to describe the type of construction. Mr. Sebold stated the townhome portion of the project would be a wood frame, three -story building, of low maintenance materials, gabled roof, with attached and some detached garages. They have not gotten into a discussion with the HRA on the construction details for the retail portion of the project, but he envisioned a one -story town square, more colonial style, brick and stucco, with pitched roofs. i Ms. Schnabel asked if they would be using low income tax credits, or would these be market rate units? Mr. Sebold stated these will be for -rent market rate units. Mr. Casserly handed out a "Comparison of Proposals for Development of Southwest Quadrant of Mississippi Street and University Avenue N.E." He stated the City has had a wide range of genuinely legitimate development proposals. So, he thought it would help the HRA to see some of the comparisons between these proposals and maybe that would help the HRA focus on the public policy issue of they "pay for what they get ". Mr. Casserly stated the way all these proposals have been designed is that the HRA is not purchasing the land. The developer is purchasing the land, and the developer is doing the public improvements, demolition, and relocation. -If necessary, the HRA will enter into a condemnation in the event of a holdout, if the HRA gets the proceeds from the developer first to make the acquisition. About one year after the project is under way, the HRA will then issue its bond and reimburse the developer from what can be gotten from the bond proceeds. So, in each of these projects, the developer will do the acquisition. There are a lot of reasons for this, not the least of which is the developer might be able to get better prices, have more control over the development, and might be able to do things more efficiently. Also, the obvious advantage to the HRA is it greatly reduces the risk to the HRA. This is an important feature in all of these proposals, and for purposes of analysis, that is the assumption. Mr. Casserly reviewed the "Comparison of Proposals" information comparing Tanurb, Boisclair, and Clark Construction. HOUSING i REDEVELOPMENT AUTHORITY MTG., OCT. 12, 1989 - PAGE 7 Mr. Sebold stated their intent is to not ask for funds outside the district. They would like to reserve the Burger King site for the future. They do not need that site right now for their proposal. Mr. Hugh McCloud, broker representing the land owners, the Suh's and Levy's, asked if there was any information on how the land owners would be compensated. Mr. Casserly stated all proposals assume the same thing - -that the developer acquires the land. In the event of a holdout, the HRA condemns the property, and the developer carries, which is a cost not factored into this because that requires a lot more refinement. Mr. Meyer asked what the projected taxes were for the City and for Lundgren before his project fell through. Mr. Casserly stated the taxes of rental ranged from $900 to $1,900. The City projected in the $1,100 range. There was a lot of low and moderate income housing involved in it. The Clark project is very much market rate, and the developer could anticipate the taxes per year to be in the $1,400 range. Mr. Ron Clark stated this is a townhouse -style development with more square footage per unit than other proposals the HRA has had for this property, and that will push the tax rate higher. Mr. Meyer stated one of the ultimate evaluations for the HRA is going to have to be on whose units are better than the others, because that is where the tax projections are based. Mr. Commers stated size and quality are going to be very important. Mr. Casserly stated that in all these summations, he has tried to use the developer's best judgement on what they think they will be paying in taxes. His vision of the development agreement is going to place the risk substantially on the developer to perform to generate the kind of taxes they are estimating so they can get their return back. Maybe just the difference in size of the units can contribute substantially to the difference in taxes. They could have equally high quality exteriors and all the amenities could be identical, but the difference in the size of the units can make the difference in the taxes. Mr. Casserly stated the HRH presented to them and while a least it gives the Commission different kinds of projects. Boisclair representatives to numbers. has had a variety of proposals lot of these are approximations, at a feel for what is required for the He will definitely work with the get a better understanding of the HOUSING & REDEVELOPMENT AUTHORITY MTG., OCT. 12, 1989 - PAGE 8 Mr. Commers asked if the Clark Construction people had any comments for clarification on their proposal. Mr. Inman stated Clark Construction represents a standard transaction of worth. They just completed a development in Golden Valley that is similar in size to this proposal, and the HRA could check the tax numbers on that project. Mr. Commers stated that regarding the Burger King site, does this proposal meet the commitment that somewhere there is third phase that would pick up the Burger King site? Mr. Inman stated they have not gotten that far into the proposal. He stated he thought there were two options: (1) To pay an inflated price for a piece of property just to remove the building, but that is not economical for Clark. (2) To try to make the site self- supporting with what is there now and what they perceive the market to be. Mr. Inman suggested the City Assessor look at the concept of both proposals. Boisclair Corporation Mr. Boisclair stated he wanted to re- emphasize that they have $1,280,000 so that parallels the bottom line. They push from the standpoint of doing a redevelopment project that enhances the site and makes a statement. It would be a complete project on a phased basis. They feel office is not viable in this area. As far as taxes, they will not know that until they look at the rents. They are building a little more density which creates more population base which creates more volume of purchasing power. The second phase includes the Burger King. Ms. Schnabel stated neither proposal really includes the Burger King site in the first phase. Mr. Casserly stated the bottom line costs on both these proposals of what has to be contributed by the developer in cash includes the Burger King site. There is a further refinement the Clark proposal would like to make. Ms. Schnabel stated it is real "iffy" whether either proposal will buy the Burger King site. They should figure the proposals both with the Burger King site and without the Burger King site. Mr. Commers asked Mr. Boisclair to outline phase I. N ROUSING i REDEVELOPMENT AUTHORITY NTG., OCT. 12. 1989 - PAGE 9 Mr. Boisclair stated it will include acquiring the liquor store and all the vacant property behind it, the Levy property, the Dairy Queen, Kiffe's Automotive, the City street portion, and the car wash facility. Mr. Inman stated basically phase I was the same for Clark Construction. Mr. Boisclair stated that regarding taxes, he would also suggest that the City Assessor look at both proposals and give them a quote. Mr. Casserly stated the developers have responded to some direction from staff. Staff has told them to be conservative as possible. The reason for that is this system assumes they are going to issue a tax exempt bond, and that assumes the City has some risks. The developers are not going be guaranteeing debt service, so they want some margin for error. Mr. Commers stated he had hoped the HRA could review these proposals at this meeting and start to move on this but, for whatever reason, the Atlas Corporation, was unable to present their n proposal at this meeting. Mr. Commers asked what Clark Construction's time line was if Clark Construction's proposal was chosen. Mr. Sebold stated they would like to be in the ground by June 1990. They would need a decision from the HRA by January 1, 1990, at the latest. Mr. Boisclair stated they contemplate their first phase starting in June 1990 as well. Their concern is the bond inducement for the low income housing revenue bond, and they need to be in line the first week in January. Mr. Commers asked about the status of Mr. McCloud's• clients, the Levy's and Suh's. Mr. McCloud stated they had spent quite a bit of time on the Tanurb proposal. They have had discussions with the Boisclair Corporation, and the Boisclair project is an acceptable project to them. They are not aware of the Ron Clark Construction proposal. He stated they have been trying to get the momentum going after being exposed to the process for many years without success and being caught in between condemnation and not being able to do something. r-� Mr. Commers stated this is a big project and a very important project. They might be in a position of committing a significant amount of money, and he felt they should spend whatever is needed ROUSING & REDEVELOPMENT AUTHORITY MTG., OCT. 12, 1989 - PAGE 10 to get as accurate an analysis as possible and should authorize Mr. Casserly to do it right away. Mr. Prairie agreed. Ms. Schnabel agreed. She would like to see an analysis of Boisclair and Clark with and without the Burger King site. Mr. Meyer agreed. He stated he would also like to see a more exact tax appraisal. Mr. Commers stated that timing is also important. So, if Mr. Casserly can get an analysis done fairly soon, the HRA should probably have a working meeting devoted to these proposals so they can arrive at a conclusion possibly in November. Mr. Casserly stated he would work with the developers, put the analysis together, and then let the developers react to the analysis before it is brought back to the HRA. Mr. Commers stated staff should notify Atlas Development to get their numbers in quickly so that Mr. Casserly can incorporate them in his analyses. Mr. Commers stated staff should get some tax assessment comparisons from Anoka County for other projects that have been done. Mr. Clark stated he would recommend they use new projects that are comparable, projects that have been completed within the last year or two, because there is a considerable difference between what new projects are being assessed at and what older projects were assessed at. Mr. Sebold stated that the project ownership will be Ron Clark for both the retail and the rental. They have no reliance on outside investors. Mr. Commers tentatively set a working meeting for Thursday, November 2, 1989. Mr. Commers thanked the representatives from Boisclair Corporation and Ron Clark Construction, and Mr. McCloud representing the landowners, for coming to the meeting. The HRA members expressed concern about not having enough background information on the Boisclair Corporation and Ron Clark Construction. Mr. Commers stated maybe the City can get some Dun & Bradstreet reports on these companies. HOUSING i REDEVELOPMENT AUTHORITY MTG., OCT. 12. 1989 - PAGE 11 Mr. Meyer asked if it would be possible to urge Clark Construction to submit some type of overview of their project - -a plot plan and an architectural sketch rendering of their project. 3. CONSIDERATION OF PLAZA LANDSCAPE REVISIONS: Mr. Commers stated that according to Mr. Robertson's memo dated September 7, 1989, he suggests the HRA wait a year before taking any further action on the Plaza landscaping. Mr. Robertson stated that although it is clear to the Landscape Architect that the trees are beginning to show distress, the HRA might want more time to look at other alternatives. In his memo, he outlined several options: 1. Do nothing at this time and wait several years until more trees have died before replacing. 2. Replace all the trees at this time as recommended by Public Works. 3. Remove all trees and replace with paving materials instead. 4. Remove dead trees and those with 50% or less healthy canopy. 5. Remove all trees and replace with fewer, more widely spaced larger trees. Mr. Meyer stated this is a very central part of a very lovely quadrant. They have a newly remodeled Municipal Center. If they have a second rate prominent feature, it just seems like such a contrast. It seems they should go first class in this area. MOTION by Mr. Meyer to authorize the Plaza landscape revisions as soon as possible as outlined in Mr. Flora's August 24, 1989, memo. Ms. Schnabel stated she is uncomfortable with the dollar amounts. There is also the philosophy about the best time to plant, and she feels spring is a better time to plant than.fall. Mr. Meyer stated he had no problem with specifying that the planting be done in the spring. Mr. Newman stated that if they are going to wait until spring, maybe they should ask Michele McPherson, the Landscape Architect, to put together a recommendation for the HRA to consider. 1­1� MR. MEYER WITHDREW HIS MOTION. HOUSING & REDEVELOPMENT AUTHORITY MTG.. OCT. 12. 1989 - PAGE 12 C A OTION by Mr. Meyer, seconded by Ms. Schnabel, to table discussion on the Plaza landscape revisions and authorize staff to develop a plan for HRA review. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. INFORMATION ON PARKING RAMP CONSTRUCTION COSTS: Mr. Robertson stated that at the August meeting, the HRA requested staff to put together a breakout of Municipal Ramp costs. That was done by Mr. Flora in his memo dated September 1, 1989. Attached to the memo was additional materials to describe many of those proposals. Mr. Commers stated his biggest concern has always been all this landscaping. He did not know how the City can contend that it is part of the ramp itself. They are talking $100,000 for landscaping and for the bridge. If the City Council wants these things, they should pay for them. Why is it lumped into the cost of the ramp? Mr. Commers stated the HRA made a commitment to build a ramp at a cost of $750,000. They are now at a number that is unbelievable in terms of overages. Now the landscaping costs are being Pumped in with the ramp costs, and he did not think the HRA should have to pay for it. Mr. Robertson stated it was consciously omitted at the time the contracts were let because the plans and the specs for the landscaping and the signage were not prepared at the time they went to bid the project. Mr. Commers stated the HRA was never told that these were to be included in the costs. That might have happened, but the HRA was not made aware of it. Mr. Billings stated that when the bids were coming in, the Municipal Center came in some $250,000 over budget, and the ramp came in at $250,000 under budget. The City Manager, Mr. Qureshi, decided to put the landscaping with the ramp. So, the lines of communication between the HRA and City Council were not very good. Mr. Commers stated he certainly appreciated this information. Mr. Meyer stated he had requested this information, and Mr. Flora's memo is a good summary for the record of how the changes came about. K A HOUSING & REDEVELOPMENT AUTHORITY MTG., OCT. 12. 1989 - PAGE 13 5. INFORMATION ON BIDS FOR ANTI- GRAFFITI SEALER FOR PARKING RAMP: Mr. Robertson stated $5,000 was allocated for the white paint, and the HRA decided to see what it would cost for anti - graffiti sealer. The low bid came in at $16,940 and paint was $8,250. Since there has only been one isolated incident, he would recommend any action on this expense be delayed until next summer. The HRA concurred with staff's recommendation. 6. INFORMATION ON OUTLINE OF DEVELOPMENT AGREEMENT WITH PRO- ENGINEERING: Mr. Robertson stated this was an information item. 7. ESTIMATE: RAY JORDAN & SONS - MOORE LAKE COMMONS & LAKE POINTE MAINTENANCE NOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the estimate for Ray Jordan & Sons in the amount of $1,739.80 and $1,680.00. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 8. ESTIMATE: GREENMASTERS. INC. - LAKE POINTE MAINTENANCE MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the estimate for Greenmasters, Inc., in the amount of $29,331.43. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 9. CLAIMS: a. Billing for Personal Services for August & September Mr. Commers stated he has noticed that for the last several months, the HRA has been getting additional expenses they never used to get. The expenses he is referring to are under Operating Expenses: long distance telephone calls, electricity, microfiche service, inspection service, etc. The HRA always paid its prorata share of the Labor Detail, and if the HRA was paying for these operating expenses in the past, he would like to know how those were charged. He was not saying it was not an appropriate change, but he would like to know why it has been changed. Ms. Schnabel stated she wondered what Inspection Service was under r°- Operating Expenses in the amount of $716.48. It was the same dollar amount for both the August and September billings. She r e HOUSING i REDEVELOPMENT AUTHORITY MTG., OCT. 12. 1989 - PAGE 14 r1 would also like to know what the irrigation supplies include under the Operating Expenses in the August billing. NOTION by Mr. Meyer, seconded by Mr. Prairie, to approve the Billing for Personal Services for August and September 1989. UPON A VOICE VOTE, COMMERS, PRAIRIE, MEYER VOTING AYE, SCHNABEL ABSTAINING, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED BY A VOTE OF 3 -1. b. Check Register (1932 -1948) MOTION by Mr. Prairie, seconded by Ms. Schnabel, to approve the check register as submitted. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ADJOURNMENT: MOTION by Mr. Prairie, seconded by Mr. Meyer, to adjourn the meeting. Upon a voice vote, all voting aye, Chairperson Commers declared the October 12, 1989, Housing and Redevelopment Authority meeting adjourned at 10:15 p.m. Respectfully submitted, Lynfia' Saba Recording Secretary f� IOUSNG and REDEVELOPMENT AUTHORITY COMMISSION MEMBERS: LAWRENCE COMMERS CHA IAN OUANE PRARE VRGNIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: November 3, 1989 TO: Housing & Redevelopment Authority Members FROM: Jock Robertson, Community Development Director SUBJECT: Proposals for Redevelopment of the Southwest Quadrant of University Avenue and Mississippi Street We have received an updated analysis by Jim Casserly of the Boisclair and Ron Clark proposal together with the description of the governmental housing revenue bond program which is proposed by the Atlas Development Corporation (see attached memo and chart). The chart has been reviewed by both Boisclair and Ron Clark, and they essentially agree with the updated summary. It would appear that the Clark proposal, while less monumental, is most encouraging for the following reasons: 1. Most importantly, no additional money would be required from outside the district to support the Clark proposal. 2. The provision of 100 market rate housing units would promote a better housing „mix" for the entire Center City redevelopment project area. In the Boisclair proposal, which would create 150 units in the wood option, the use of tax exempt housing revenue bonds would require more low and moderate income housing. This would have two disadvantages: a. Public assistance would be used to provide rent subsidies. b. These rent subsidies would not be permanent, but merely be provided during the duration of the bonding period. 3. This proposal uses the most Developer cash equity. JR:dn M -89 -674 EXECUTIVE DIRECTOR: JOCK ROBERTSON 4431 UNIVERSITY AVE. (412) 571 -3450 FRIDLEY, MN 55432 EXT. 117 1 -A 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 Richard Pribyl, Finance Director David Newman, HRA Attorney FROM: James R. Casserly DATE: October 27, 1989 RE: Comparison of Development Proposals for the Southwest Quadrant of University Avenue Northeast and Mississippi Street ( "the Redevelopment Site ") Attached is a chart which can only be described as a good faith effort to compare various proposals for the Redevelopment Site. This chart has been forwarded to both Boisclair and Ron Clark. As the chart indicates, the Redevelopment Site excludes the acquisition of Burger King; however, both Boisclair and Clark have contemplated a second phase which includes it. The Clark Phase II proposal is to construct an office building and this should require no additional funds from outside the district. The Boisclair Phase II "Concrete" option would add an additional 125 housing units and 30,000 square feet of commercial space and would need approximately an additional $1.5 million from outside the district. The Boisclair Phase II "Wood Frame" option would add an additional 60 housing units and 30,000 square feet of commercial space and would require approximately an additional $750,000 from outside the district. It appears that the Boisclair financing requires the use of tax exempt housing revenue bonds. In order to use this method of financing, the developer must receive an allocation from the State of Minnesota. The availability of the allocation is always a matter of conjecture. Clark Construction needs no allocation. 1 -B ,--1 Page 2 City of Fridley October 27, 1989 Also attached to this memorandum is an overview of a governmental housing revenue bond program. This is the program being suggested by Atlas Development Corporation and is radically different from anything else that has been proposed. Under this program, the HRA would be the owner of the project, issue debt to finance the project and retain a manager of the project. As a financing mechanism, the program definitely works. JRC /db Casserly Molzahn & Associates, Inc. 215 South 11th Street, Suite 200 - Minneapolis - Minnesota 55403 Office (612) 342 -2277 - Fax (612) 332 -4765 OVERVIEW GOVERNMENTAL HOUSING REVENUE BOND PROGRAM Why Establish Program 1. Need for low moderate income housing (community sets standards Minnesota Statute 469.012, Subd. 8) 2. Need for redevelopment 3. Elimination or diminution of traditional tax exempt financing 4. No property tax payments (percentage tax on rentals 496.040, Subd. 3) 5. No sales tax on building materials (469.040, Subd. 1) How It Works - An HRA 1. Acquires property 2. Retains project coordinator 3. Retains project manager (3 year maximum lease) 4. Retains underwriter 5. Sells tax exempt revenue bonds (may pledge or use tax increments) 6: Constructs project 7. May sell or enter into long term equity or management percentage leases when tax exempt debt is paid �l 1.0 ,11-� The Problems 1. Construction Risk a. Fixed price contract b. Reputable builder C. Insured draws; completion bonds d. Project coordinator 2. Management Risk a. Operating reserve (indirect funding) b. Marketing analysis C. Selection of co- insurer d. Competent project manager 3. Perceived "moral obligation" a. Non recourse debt (FHA and co- insurer) b. Will HRA allow default of public housing project 4. Potential staffing requirements or adjustments a. Development and operation b. Reporting 5. Site specific problems a. Tax increment for acquisition, relocation and demolition b. Tax increment for pledge 1 -D 1 -E § , # _ 0 0 e° 0 0 o° % � 2 § § CA E « ■ ° W 2 � L J ee § � ^ - � & . n _ 2 e 2 ■ - 2 2 o w d /} 2 § a 7 o § o \/ k§ § 0 Ln 8 �z )$ Ln § / LLJ §7 Q � Q § 0 c $ &§® �� �J | ~ 2 § o § f ° 0 0 � S §� §� 88 o. o z a 8 { CD k2CLn � J @ K ■ J G of cn c - J o � & �/5 R_ 0. 7 § J� § «b «a e K J §§ - / B § G @ 8 ° § t J ,. ; � 2 0 J J 0 J J 0 J 0 G U. S R E c 2 C a � © 2A 7 t ■m � « � t£ 2 c � � , � a e � / . « j k C - ■ § § C3 -C § # fe U-J ° - § 1I - - -2 $ 42 2 0 _■- \« �§ J§ § I� 2 J f ■. CY ` £ ate§ % S. D- § >� F$ © E 0 � 0 20 0 �4J 0 S.2 f J 2 J « « 2 � 2 I $ § � � k 3 k 2 §2 0l.- 3 2 2 a a - ■ J OUSNG and REDEVELOPMENT AUTHORITY 2 COMMISSION MEMBERS: LAWRENCE COMMERS, CHAAMAN OUANE PRARE V081N1A SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: November 3, 1989 TO: Housing & Redevelopment Authority Members FROM: Jock Robertson, Executive Director of the HRA SUBJECT: Proposed Terms for Redevelopment Agreement with SBF Development Corporation As a follow -up to the HRA's authorization to initiate a redevelopment tax increment district and development agreement, staff met with Mr. Farrell on October 25, 1989 to discuss the outline of the development agreement and the schedule for setting up the redevelopment district. As outlined in the attached memorandum from David Newman, the development agreement will be set up as a pay -as- you -go revenue note initiated upon substantial completion. ' the proposed 45,000 square foot theater /retail complex. The r. -um payment would be $250,000 in six semi- annual payments between June 1992 and December 1994. If the taxes generated by the project are greater than projected, the note would be pre -paid. If the taxes generated are insufficient, the deficiency would automatically be forgiven upon the expiration of the note. These terms are acceptable by Mr. Farrell and ensure the no risk guidelines stipulated by the HRA. We recommend approval. The preliminary schedule for establishment of the district has been put on hold as of this morning by Mr. Farrell (see attached schedule dated November 1, 1989). He is currently attempting to renew his option which lapsed October 31, 1989. However, the schedule does illustrate the sequence of events to be followed in setting up the TIF District and approving the Development Agreement. I will provide the HRA with an update when the developer is ready to proceed. JR /dn M -89 -666 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (IS 12) 571 -3450 FRIDLEY, MN 55432 EXT. 117 IV �1 OUSNG and REDEVELOPMENT AUTHORITY 2-A COMMISSION MEMB ER S LAWRENCE COAMERS, CHAMMAN NJANE PRARE VMCMIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: November 1, 1989 TO: Barbara Dacy, Planning Coordinator Dave Newman, HRA Attorney Jim Casserly, Casserly Molzahn & Associates FROM: Jock Robertson, Executive Director of HRA SUBJECT: SBF TIF: Projected Schedule Please add your comments and suggestions: Oct. 25, 1989 - Outline preliminary development agreement with SBF. Oct. 25, 1989 - Planning Commission reviews revised site plan. (Postponed by Farrell until Nov. 8.) Oct. 30, 1989 - City Council Conference on parking stall dimensions. (Held over by City Council. Preliminary review required before approving site plan on Nov. 13.) Nov. 1, 1989 - Nov. 9, 1989 - Nov. 13, 1989 - Nov. 13, 1989 - Nov. 29, 1989 - Dec. 6, 1989 - Dec. 14, 1989 - Dec. 18, 1989 - JR:Is Outline development agreement ready for HRA agenda. HRA action on outline of development agreement. City Council action on revised site plan. City Council sets TIF district public hearing for December 18, 1989. Draft development agreement ready for review. Final development agreement ready for HRA packet. HRA action on final development agreement. City Council public hearing and final action. M -89 -638 EXECUTIVE DIRECTOR: JOCK ROBERTSON $431 UNIVERSITY AVE. (6 12) 571 -3450 FRIDLEY, MN 55432 EXT. 117 w HERRICK & NEVI" p N 2 -B ATTORNEYS AT LAW Virgil C. Herrick James D. Hoeft Gregg V. Herrick Of Counsel David P. Newman M E M 0 To: Jock Robertson Executive Director Fridley HRA From: David P. Newman O - Date: October 25, 1989 Re: SBF Development Corporation Pursuant to your request I am providing you with the following summary of the proposed Contract for Private Redevelopment between the Fridley Housing and Redevelopment Authority and SBF Development Corporation. This summary is a result of our meeting with Jerry Farrell on October 25, 1989. In this project the developer is proposing to develop approximately 45,000 square feet of space which will house a movie theatre, adjacent retail center and free standing fast food restaurant. Construction will start on or before January 1, 1990 and will be completed on or before December 30, 1990. Neither the HRA or the City will be making any improvements to the site. The development agreement will be contingent upon obtaining necessary zoning approvals and complying with any conditions which the council may impose thereon. It is my understanding that prior to the Authority reviewing the actual Contract for Private Redevelopment the developer will have submitted to the City Building Inspector a complete set of the final plans and specifications for this development. Accordingly, the contract will reference those specific plans and the developer will be required to construct the development in accordance with those plans. Further, the contract will provide that any major modifications to these plans and specifications will first have to be approved by the Authority. Only upon the development being completed in accordance with the contract and the plans and specifications will the Authority then be obligated to provide assistance. This assistance will take the form of a revenue note. I would invision that the revenue note would contain the following terms: a. It would be a taxable note. b. It would accrue interest at 10% per annum. Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612- 571 -3850 /"1 2 -C Jock Robertson October 25, 1989 Page Two c. The first payment on the note would commence in June, 1992 and the last payment would be due on or before December, 1994. d. The principal amount of the note would be calculated at the time that the note is issued by present valuing to the date of issuance. The payment of $250,000 over six (6) equal semi- annual installments commencing on June, 1992. The discount factor would be 10 %. e. During the term of this note all increment less 5% for administrative fees would be pledged to the payment of the note. Accordingly, if the taxes generated are greater than what we anticipate then the note will be prepaid. f. The note automatically terminates on its termination date and there will be no survival of arrearages. Accordingly, if the tax increment generated by the project is insufficient to pay all of the installments on the note then this deficiency is automatically forgiven upon the expiration of the note. g. This note will be an unregistered security so if the developer pledges the note as security it will have to be with a qualified investor. I believe this is an accurate summary of we discussed with Mr. Farrell regarding this Subject to conceptual approval by the HRA at and further subject to final approval by the begin the process of drafting this contract Housing Authority at their December meeting. cc: Jerry Farrell Sunset Ridge Business Park 5871 Cedar Lake Road St. Louis Park, MN 55416 James Casserly the business points that development agreement. their November meeting City Council I will then for submission to the �s unoF FRIDLEY PLANNING DIVISION - MEMORANDUM DATE: November 2, 1989 TO: William Burns, City Manager FROM: Barbara Dacy, Planning Coordinator SUBJECT: Progress Report on Skywood Mall Property and Twin City Federal Development Plans The City Council, as part of their authorization to extend the variance approval for one year for Twin City Federal last July, directed the City Attorney and staff to work with the Skywood Mall property owners to insure that Skywood Mall cooperates with Twin City Federal. Twin City Federal needs authorization from Skywood Mall for joint parking areas plus assistance in reconstructing the 52nd Avenue driveway entrance. !'1 On November 1, 1989 I met with representatives from Twin City Federal, Skywood Mall Partnership, Marquette Bank and Towle Real Estate to resolve these issues. The following is to occur: 1. Although the Skywood Mall partnership stated that they cannot contribute any money for improvements to the property (because of bankruptcy litigation) , they do want to cooperate with Twin City Federal and the improvement of the 52nd Avenue entrance. The City currently holds a $10,000 bond for outside improvements on the property. It was agreed that the City would pursue collecting on the bond to put toward the $30,000 necessary to complete the 52nd Avenue driveway improvements. Twin City Federal would be responsible for $20,000. 2. If the bond money cannot be obtain by the City, Skywood Mall Partnership would then evaluate whether or not adequate funds exist in the operations account (the receivership is operated by Towle Real Estate). 3. Marquette Bank requested the City to notify them as soon as possible regarding the status of the bond so that the Board of Trustees regarding the property can review and approve the proposal. 11 ' Skywood Mall Property November 2, 1989 Page 2 4. Twin City Federal is in the process of making modifications to the agreement with Skywood Mall regarding the driveway improvement and is forwarding a new set of documents for signature to the 11 Skywood Mall partners. 5. There is approximately $1,000,000 outstanding in real estate taxes on the property. Easements and deeds necessary to accomplish the shared parking and driveway improvements cannot be recorded at Anoka County until the real estate taxes have been paid. Twin City Federal has requested the City to work with Anoka County in determining whether or not the documents can still be recorded despite the outstanding taxes against the property. Virgil Herrick agreed to speak to the County Attorney. In conclusion, the City will begin the work necessary to collect on the bond as soon as possible. I will keep you and the City Council apprised as to our progress. BD /dn cc: Virgil Herrick Jock Robertson John Flora M -89 -667 VOLUME 5, NUMBER 44 cases shetisr Tech Media Company OCT1 a Survival of the fittest RETAIL STRIP MALLS FACING AN INFLUX b), Liz Wolf il(rla. is survival of the fittest as retail strip centers appear to be popping up on almost every street corner. L Why do some succeed while others fall by side Pe the wayside? What secrets do developers and 4 a managers have to make their strip centers stand out from the pack? _ ENTOANCE M There are really no secrets, most retail ex- o, ports agree. Thorough research, strong an- chors, a good location and a healthy tenant mix play key roles in a successful strip center. _ _ SPACE. 'The bottom line, theoretically, is to have - �.�29-3443 the right location as it regards demographics, infrastructure and visibility, and kick it off 44� with the right anchors and you have most of the problems solved:' says William McHale, _ f - ��+ i 'k,+ of Tu in Cities -based Ryan Construction Co. ' of Minnesota, which has worked on a number g - of strip center projects, including a new retail t development under way in Apple Valley. "As a rule, I anchor all my centers with a grocery store and/or a discount store;' he a r• s u notes. We think we ve been dealing with the best ' /10I anchors in the city. We know what to expect _ from customers who shop at a Cub or Byer- , -,6 ., ly's or Target:' , , 1 c �• s; c 'r 3 tom` % r 3 w 1 - t After the anchors are in the tenant mixL needs attention. McHale adds. Synergism is ;� needed so tenants can help one another, he pie ,:+� ! ;mss . , notes. Ryan Construction broke ground in mid- October for the 300,000 square foot Cliff Lake Center in Apple Valley, which is to be �• +y t+ a, �- *,�;7" 1 *E 40 M anchored by a 162,000 square foot Target pro- totype store and by Cub Foods. McHale Miracle Mile Shopping Center in St. Louis Park, one of the oldest strip centers predicts it will be a very successful project In the Tin►In Cities, continues to draw shoppers. Good location and a refined since there are strong users at both ends. marketing program contribute to the center's success. Dick Guidera of the Guidera Group, a retail consulting firm in Minneapolis, agrees suatly not less than X50 ,000 "square eet in ment developers — fitced with weak rnarkets that strong anchors are needed. He says, "If size, with three or four major anchor stores. in their traditional areas of expertise — are you don't have something that's going to be a Guidera says too many developers are moving into retail development. "They get magnet, why build it? ... If you're going to "building by chance and hoping by chance some land with neighborhood financing, and compete with the power centers, you need they'll lease space... I they build a center and try to lease it without something dominant. You can't throw a dart "I can tell you why some (strip centers) anchors. It's a different world when you get at a boardand say you71 build next to a power aren't successful;' Guidera says. "They are_ into the shopping rPntPr t,ncin cc' center ... You have to do your homework" unanchored° one problem in development s easy to build a shell for a retail strip 1 A power center is a large retail cente today is that office, single - family and apart- center project, Guidera adds, and too many Campaign coverage Voters across Minnesota will go to the polls Nov. 7 to decide on who should n govern their cities. In the Twin Cities area, several races could alter the course of development. Here's a look at three of those contests. Page 12. RE- developers are muldmg without any retail ex- perience. Guiders notes that the retail world does not yet know the impact the new large centers are going to have in the Twin Cities area. Five new anchors are here or coming to town: Saks Fifth Avenue, which recently opened in downtown Minneapolis; and Bloomingdale's, Nordstrom, Neiman Marcus and Macy's, promised for the Mall of America in Bloomington. "We're not over- stored yet, but we may be over- retailed in the future:' Guidera says. ro-force a project is not g ogre, but the money is available either through private or public funds, so they're being built. IMMPa to page 10 rota Real Estate Journal October 30, 1989 October 30, 1989 14� Richard P. Grones of the Cambridge Group Inc. in Minnetonka, has a more positive outlook on today's retail market. He describes the Twin Cities marketplace as a "box office smash on a national level" With the Bloomington mega -mall, new downtown stores coming on line and restaurants follow- ing suit, plus a lot of new free - standing retailers on their way, the retail market is hot, he says. Over - development always will occur, he notes, but the mood of developers is positive if the centers are positioned properly. "The Pood news is there is a lot of interest in the market and lots of new stores coming in. There will be lots of new faces and a com- pentne spirit among retailers:' he notes. But the strip center mix has to be proper, he j earns. There has to be synergism between 1 tenants. Grones says that the grocery- anchored strip center is still highly sought. However, he adds that customers today are making less trips to the grocery store — maybe one big trip a month. And since "ice cream melts in the car. you can't do other types of shopping" T he says. In contrast, a Target or similar store Z i is good, because people go there at least once a week, he adds. Grones says that developers are building y smarter centers today, because the tenants and E.' customers are getting smarter. 'A lot more a . study and scientific thought are being put in. m: The gut feeling is not the way it's done anvmore" he says. ional vived the influx of retail strip centers is the Miracle Muz Shopping Center in St. Louis Park. Built in 1951, it is one of the oldest strip centers in Minnesota, according to Jo Camp- bell, marketing director for the center. How has the 122,000 square foot center survived the past 38 years with all the new competition? There are two major reasons, says Greg Amundson, general manager of the center. First, it has one of the best locations in the Twin Cities — Highway 100 and Excelsior Boulevard. Second, the center has started an aggressive marketing program by hiring Campbell. "She is re-establishing us in the community; Amundson explains. A lot of developers are turning to building retail centers, he notes. "You can find a strip center on every corner. Lots of marketing must be done, because there is so much com- petition" Miracle Mile is finding a niche and going after it, Campbell notes. About 12,000 to 13,000 St. Louis Park residents — or about 26 percent of the population — are age 55 and over, according to Greg Shank, coordinator of the St. Louis Park Senior Citizens Pro- gram, sponsored by the city and school district. Miracle Mile has picked up on that fact and is directly catering to that market. The center offers a senior discount card program which currently has about 1.000 members. It also holds monthly seminars Jeared specifically toward seniors and does direct mailings to that age group. Amundson says that a center has to cater its "is to quality customer service. After all, strip centers are geared for the American lifestyle, which demands good customer ser- vice — and fast. The center's slogan is: "Park at the front r of your favorite store" Anchor tenants i elude Snyder's drug store, True Value H rdware, Creative Expressions and y s Furniture. "There are so many strip centers out there you have to let the customer know why they should come to you" Amundson says. He adds that the Miracle Mile center still has some stores lacking, such as a video store. children's clothing store and a florist, but it is s improved over the past few years. Oc- upancy is 96 percent. Some stores have been in the center since it opened. Customers like that stability and �omfort. Campbell notes. Another successful retail development is 34- year-old Robin Center in Robb nsdale. e 111,600 square foot center has one vacant storefront of 1,800 feet, according to Ralph Atlas, managing partner of the center. Atlas says that solid anchor tenants, on -site management and good maintenance are the keys to the centers low turnover. The three basic ingredients of a successful strip center are a high - traffic corner for good exposure, good access and strong anchors, with one or two stores driving the center, ac- cording to Michael Scott of Jackson -Scott Associates Inc., which develops and manages strip center around the Twin Cities. Also, he notes that the project should not be overbuilt. A couple of recent projects Jackson -Scott has completed include Creekside Plaza in Brooklyn Park, a 30000 square foot strip "Yhe good news is there is a lot of interest in the market and lots of new stores coming in." — Richard P. Grones, principal The Cambridge Group 1,kWil"I �� a W atticwW t w as terrier, and North Court Commons in Blaine, a 130,000 strip center located next to North - town regional mall on Highway IQ Scott says the Creekside Plaza has been a "tough pull," but the center is starting to fill T It contains a Speedy Market, Big Wheel, Health One Medical Center, a dry cleaners and a day care center, to name a few tenants. North Court Commons, anchored by Pier One Imports, T.J. Maxx, True Value Hard- ware and Northwest Fabric, is more'than 80 percent leased and is still negotiating with tenants, he adds. Overall, Jackson -Scott & Associates manages 1.7 million square feet of retail space. The nice thing about the shopping center business is that both the developer and anchor are doing the necessary research, says Steve Watson of Watson Centers Inc. in St. Louis Park, which has worked on a number of retail projects in the Twin Cities area. Thorough research has paid off for Watson Centers'strip center, Rainbow Plaza on 27th and Lake Street in Minneapolis. The 80,000 square foot center contains a Rainbow Foods, Gussini Shoes, a pet store, video store, yogurt shop, Proex Photo, a barber and a freestan- ding Wendy's fast food restaurant. "The com- bination of the new wave of grocery store in a densely populated area and good access didn t exist anywhere in the city; Watson W. A shopping center project had been can= ceived for that site back in 1962, but Weu on says that political p, oblems halted its develop ment. A cafeteria and police precinct statiuii had been located on the block. Watson is currently working with Cub Foods on a similar project for northeast Min- neapolis at 18th and Central Avenues. Watson Centers recently purchased the St. Croix Mall, an enclosed mall in Oak Park Heights, with plans to renovate and expand the center. Watson Centers also has a 270000 square W strip center proposed in Duluth, looted kitty- corner from the Miller Hill Mall. The center is to include a 100000 square foot Shopko, a 65000 square foot Cub Foods and a 45000 square foot Toys `R' Us. Dan Bergeron of Bergeron and Associates both leases and develops shopping centers. The company, which is Watson Centers' associate, leases Rainbow Plaza, St. Croix Mall and a strip center at Centerville Road and Highway 96 in Vidnais Heights. Each center has just one vacancy, Bergeron notes. The strip centers that work, Bergeron says, are ones that have good access and are located where people live. They have to be conve- nient with the right store mix for the right customer draw. He agrees with many retail experts strip centers are being overbuilt and he predicts that in the future some of the centers will be converted into more office/retail-type space and be more service-oriented. a . - k Eberhardt nnnry ine±oe the October 23, 1999 Aff"nemote Red Haan• burn d tiger 7 APARTMENT GUIDE Vacancies end rents up GaVERA ©E VACANCY AT 7A PERCENT 0 vemn Twin Cores mrxropo1.- am apartinaU vacancy fates - aswell asaverage rlatts - increased slightly during the third quarter of 1989 over second quarter figures. according to the quarterly Aparnne►t FA['IS Report. The Apartrtuent Guide, an Edina -based fun, surveys close to 1..3W IAuperties which represent more than 1100400 rental units, to determine actual rant and omtpany levels of apartment units in the Twin Cities metro area. The most recent report shays an overall vacancy rate of 7.4 percent for the third quarter, up from 7.2 percent 67r the second quarter of the year The third quarter 1989 vacancy rate also is higher than the 61 percent reported durine the third quarter of 1988. vacancy rate of 10.3 peroeru; St. Paul. 7.3 per - mat. the northwest suburbs. 7.1 percent; nor- theast suburbs. 5 derma southwest suburbs. 0permn; and the southeast suburbs, 5.6 ram. mong I ndi vii d M rF ties, the highest overall vacancy rates were 6wnd in Min- netonka, 17.8 perte. ;Woodbury, 12.9 per - cent. Minneapolis (north of Lake Strut), 12.1 percent. Shakopee. U.2 percent; and Savage. 11.1 percent. The lowest vacancy rates the survey repmts were in Little Canada, .97 permit; Rob - binsdale. 1.5 percent; Vadnais Heights. 2.2 rcent; St. Anthony. 2.4 percent Forest Im. 2.6 percent; and Shoreview, 2.7 m4. The third quarter survey reported that 548 1m1C4 had a vacaecy rate of 661 tX8 bltlldnlgs wYh 55,U6 aom ume at 7.1 pacaht;1.213 butbedroom mils were 7 bum with 4,413 �s were at 66 percent; and 10buildings wjth29 don ftyear7 Days I.te Maxfield of thhe Max- field d Apau , M eapoc fign "However, ifs a bale less than in previous years. but ly closer of a bmldi m the 7.4 perceat vatarrcy raft in the survey also includes new bull s die are going through lease -tap, Maxfield ex plains " nz good news a that most buildiam m doing well. "I believe that the atarloet 0 recoverfrhg; Maxfield Says. "New oorDUttaaq !has fallen off dramatically. This is due khaest level of In roposed units in the last tiottr years." He adds, But "with the continued absorption and new projects, [ think vWn: going %one va third quarter, amvrdoog to the Alimmlent Guide survey. Themerge feet dlurog the quarter was S48652, up from 5481371tu The average rents for studio, Tyne-. two-, three -. and 6w- bedroom units ell rose dur- ing the third quarter, compared with last quarter's rates. The average rent for a studio was$355fAX up 2.3 percent fmm last quarw. One - bedroom units averaged 544035, up .62 percent from the previous Two- bedroom reaps averaged $539.57, up .57 per- cent from the second quarter. Three - bedroom units averaged 5651.78, up.50per- tun mer last quarter. Four - bedroom units last averaged =175. up nearly 22 percent aw swft - - -- 16 3\4.42 1260 MW42 am 3x29 3% 1 Bids$ 119 41020 ass 429X 048- 41177 300 2 B6araa" 139 518.34 299 51114 oat 40117 4-47 3 Seaton 8 at &10 000 Stan act- SOLID 207 - -. gds Y m aoeprw an% swft OWNS . o % we 014W17 0.% Ono Type Undo! Bova Oa10 %1100 Ibe O$Be % OBa7e Bni anal % CLwwp A410" 51180 41 8.341.71 31.71% 811814 1111% Unw 2101% 1 sod m 4" 42321 1029 415.35 101 41829 1.18 2 Beaeoln 510 69.97 704 50129 1.18 a" am 3R 20 63050 &00 63258 1.0 ® s 0 .18 3 a0aioa" 1047 r e limes 1186% am= a10 a10 Os AMU 1Atiat SWID 0211105 Y a sm None 401% slow &Wb Sodom 2nD 4�34M 99" OitM 0# m an 2 Beast 210 520.00 4.78 61705 am slits 026 3 aea"d" 62 623.75 4114 82375 880 873 Os- 3Boaoa" 8o Y 11 asey4l� 4.44% 71836 tat- 7720 340 - swft - - -- 16 3\4.42 1260 MW42 am 3x29 3% 1 Bids$ 119 41020 ass 429X 048- 41177 300 2 B6araa" 139 518.34 299 51114 oat 40117 4-47 3 Seaton 8 at &10 000 Stan act- SOLID 207 - -. gds Y m aoeprw an% swft OWNS . o % we 014W17 0.% Sodom 7918 4M098M 51774 no SIGN %ameo 4p44Pb am 2 a.dse 2294 60034 9.04 401'.5 0.48 401$ 1.49 3 BOaose X0011 1130 as 1.44- d/s 0677 e0�iemod 6138 170 Y 07056. j 1424.97 9,590 asm •005 004-% 047.00 aa04 se 6: c� C _C a psi z W 0 0 Z it s OROS fill �sss� iCR�8 ii 1 1 ju sRO: :8 61200 18�88j ooarto4 88;,28' 11xn oy;�s•� 11 inn 1oABA Anrid 3229 pal i I Isar dd. o OARS 02$0? 'h live 1010 �S�s fCHIP riw s fidddei ri88o! fit I?aiI ewwoN USA W J 111!1• 41 p 1: j # rj$_d 46$88n$�,n�i Fig 3Rws eN�00 1d.t� 1:000 OONN N..OIO N�fi li s : s -d rioted dooms 000d o0o dddo s t3A1� 88=$f gags= Imed fus, s8�E evinN d ^o�o'd� d�.d demo 1'101 s �si$s 8$88 8$w8 $°$$ $-.251 8$8m wg i s Ti i A t 1811,11 1124=1 �= ill Iljfl NN Nll NN�NtO F Zi W 0 W -� dD N �Z c a E a s p �iLL•c i� `p w�.� OGQ� 10.0 y a�ea �sm= o �azra, =s2�0.9•C� �ae� �w E3 e I •c`� E m SAO- IL Up g�3 C.- � �. � p , `� ° ���•C.� rr y O rV 7V1 •0 V �Q�'IL $os qO= V � Yo�D� ��' CL .R H 9Los � 9.38 O 3 60 0 00 O - N X O N R$ jimms hss$ d0000 8�888fi nn0l101/ Im 00 -s 1046 8:8V imri� g8;,8f$Q Mod Midi N ►Ofi$ to -so; toots -ddN0 $gg :fit do'm$ 922M, O � O Ott$ lean Isas R S e 80kn$ poo to Ggso' deleidei � s � Aln3S fD NA ■ a00; f ggpjs ;2!!f d ddN dvideo mNfi s oddd .o.•oo fidoe s OROS fill �sss� iCR�8 ii 1 1 ju sRO: :8 61200 18�88j ooarto4 88;,28' 11xn oy;�s•� 11 inn 1oABA Anrid 3229 pal i I Isar dd. o OARS 02$0? 'h live 1010 �S�s fCHIP riw s fidddei ri88o! fit I?aiI ewwoN USA W J 111!1• 41 p 1: j # rj$_d 46$88n$�,n�i Fig 3Rws eN�00 1d.t� 1:000 OONN N..OIO N�fi li s : s -d rioted dooms 000d o0o dddo s t3A1� 88=$f gags= Imed fus, s8�E evinN d ^o�o'd� d�.d demo 1'101 s �si$s 8$88 8$w8 $°$$ $-.251 8$8m wg i s Ti i A t 1811,11 1124=1 �= ill Iljfl NN Nll NN�NtO F Zi W 0 W -� dD N �Z c a E a s p �iLL•c i� `p w�.� OGQ� 10.0 y a�ea �sm= o �azra, =s2�0.9•C� �ae� �w E3 e I •c`� E m SAO- IL Up g�3 C.- � �. � p , `� ° ���•C.� rr y O rV 7V1 •0 V �Q�'IL $os qO= V � Yo�D� ��' CL .R H 9Los � 9.38 O 3 60 0 00 O - N X O N R$ jimms hss$ d0000 8�888fi nn0l101/ Im 00 -s 1046 8:8V imri� g8;,8f$Q Mod Midi N ►Ofi$ to -so; toots -ddN0 $gg :fit do'm$ 922M, O � O Ott$ lean Isas R S e 80kn$ poo to Ggso' deleidei � s � Aln3S fD NA ■ IOUSNG and REDEVELOPMENT AUTHORITY COMMISSION MEMBERS: 3. LAWRENCE COMMERS, CHARMAN OUANE PRAM 1/R WIIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: November 1, 1989 TO: Housing & Redevelopment Authority Members FROM: Jock Robertson, Executive Director of the HRA SUBJECT: HRA Expenses for Rice Creek Road Improvements The total cost to '4he improvements to East Moore Lake Drive, formerly Rice Creek Road, in the Moore Lake Commons area was $1,058,858.43. Of that amount, the HRA budgeted $393,853.43. The balance was to be assessed back at predetermined amounts to the following business: 1. Northwest Racquet, Swim and Health Club - $199,500 ^� 2. Moore Lake Shopping Center - $399,000 3. Shorewood Plaza Shopping Center - $66,500 (See attachments from Rick Pribyl and Julie Burt) The HRA agreed to pay for the installation and the work is now complete. Staff recommends the HRA issue a check to the City of Fridley for $1,058,858.43. As the City collects the assessments over the 13 year period, 1991 - 2000, they will remit those amounts back to the HRA. JR /dn M -89 -669 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (S 12) 571 -3450 FRIDLEY, MN 55432 EXT. 117 11�, CITY OF FRIDLEY M E M O R A N D U M TO: JOCK ROBERTSON, EXECUTIVE DIRECTOR - HRA FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR JULIE M. BURT, ASSISTANT FINANCE DIRECTOR SUBJECT: HRA BILL iOR RICE CREEK ROAD IMPROVEMENTS DATE: OCTOBER 27, 1989 3 -A The 1988 street project included improvements to the Rice Creek Road area. Prior to work commencing, the HRA negotiated development agreements with Northwest Racquet, Swim & Health Club, Moore Lake Shopping Center and Shorewood Plaza Shopping center. -- The HRA agreed to pay for the installation of the improvements and assess back a predetermined amount to the businesses. The total cost used in negotiating was originally estimated at $1,200,000. The actual cost is $1,058,858.43. I have attached a copy of the final assessment roll for your review. The HRA should issue a check to the City of Fridley for $1,058,858.43. The City will remit the assessments as they are paid over the thirteen year period 1991 -2003. The HRA should also be aware that in the event any of the above mentioned properties were to go delinquent, they will not receive their assessments until they have been paid. . CITY OF FRIDLEY FINAL ASSESSMENT ROLL STREET IMPROVEMENT PROJECT NO. STREET 1988 - 1 i 2 (PARTS At Be i C) RICE CREEK ROAD - T. H. 65 TO CENTRAL AVENUE, EAST SATELLITE FIRE STATION PARKING LOT, OSBORNE ROAD BIKE PATH, 63RD AVENUE AND RICE . CREEK ROAD, 6400 CENTRAL AVENUE, SEARS SURPLUS PARKING LOT. Grading. stabilised base. hot -mix bituminous mat, concrete curb and gutter, sidewalks. grater and sanitary sewer services, storm sewer ., system, landscaping. lighting, and signals. . LEGAL DESCRIPTION ASSESSMENT . Northwest Raquet, Swim, & Health Club Lot 2, Block 3 Shorewood Plaza . Pin No. 13- 30 -24 -34 -0029 $199,500.00 V Moore Lake Shopping Center Lot 1, Block 3 Shorewood Plaza , Pin No. 13- 30 -24 -34 -0028 399,000.00 r Shorewood Plaza Shopping Center Lots 16 & 17 Auditor's Subdivision No. 88 Pin No. 13- 30 -24 -34 -0025 66,500.00 Kitterman & Sunde (6400 Central Avenue) Lot 1, Block 1 Herwal Rice Creek Terrace Pin No. 13- 30 -24 -31 -0031 12,200.00 Sears Surplus Parking g Lot 1, Block 1 Shorewood Plaza Pin No. 13- 30 -24 -34 -0026 37,379.69 TOTAL COST TO BE ASSESSED: $714,579.69 ak� (Continued) ■ ■ To Be Paid To Be Paid To Be Paid To Be Paid To Be Paid To Be Paid To Be Paid Redevelopm, CITY OF FRIDLEY FINAL ASSESSMENT ROLL (CONTINUED) By Satellite Fire Station For From City Overlay Fund For From Sewer Fund For From Storm Sewer Fund For From Storm Sewer Escrow For From Driveway Escrows For By Fridley Housing and ant Authority TOTAL ASSESSMENT: v N $ 14,017.87 3,744.74 31,557.44 909.83 1,490.17 13,496.31 393.858.43'/ $10173,654.48 3 -C 31 ,1*'� 3 -D HOUSING & REDEVEIAPMErTT AUTHORITY MEOTI G, NM04BER 12, 1987 PAGE 3 but was possibly the City paying for things that should have been paid for by Subterranean? Maybe the City could approach Subterranean in a tactful way and ask them to better explain their billings. Mr. Newman stated he shared with the staff some of the same concerns as those expressed by Mr. Meyer. He suggested that this item be continued until the next meeting in order to allow City Staff to talk to both Subterranean and Sunde Engineering privately in order to make sure that everything was in order. Mr. Robertson stated he was comfortable with that request. Staff would come back to the next meeting with more information regarding these change orders. 3. CONSIDERATION OF IMPROVIIMENr EXPENDITURES ON: a. University Avenue Corridor - $1.5 mill n b. Public Rammp - $ 1 million V c. Rice Creek Road Diversion - $0.6 million •/ d. Moore Lake Water Quality - $0.5 million e. North Area Ponding - $0.35 million Mr. Robertson stated these were the item reviewed by the HRA at their joint meeting with the City Council on Thurs., Nov. 5. These five items were approved by the HRA for action for projects for 1988. MOTION by Mr. Prairie, seconded by Mr. Rasmussen, to approve Resolution No.HRA 7 -1987, "Resolution Authorizing Improvement Expenditures for Projects within the Tax Increment District for Construction in 1988 ". UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DB=,'M= THE MOTION CARRIED UNAN3MOUSLY. 4. CONSIDERATION OF DIRECTING S.E.H. TO COMPLETE FINAL PLANS FOR RICE CREEK V/ ROAD A 1D SU)"MIT TO CITY COUNCIL FOR CCNSrP=ION: Mr. Robertson stated that on Aug. 13, 1987, the HRA authorized S.E.H. to prepare the detailed plans and provide for an inspection for a specified amount of money. %hat was now before the Commission was a procedural matter where the HRA was directing S.E.H. to work through the City Council as the HRA's billing administrator, and the HRA was agreeing to Pay back the City Council in a monthly manner. This was the same type of arrangement the HRA had with the contractors on the Lake Pointe site. Mr. Meyer stated that in the resolution, in the first "WHEREAS", it stated: "..the Housing & Redevelopment Authority authorized the execution of a con- tract with Short Elliot- Hendrickson for the development of the final plans for the improvement cchannelization of the Rice Creek Road from T.H. 65 to Central Avenue" - Mr. Meyer stated neither the City nor the HRA has seen the final plans, and then in the next to last paragraph of the resolution, the HRA was resolving to pay the City on a monthly basis for the cost of the street improvements 3 -E HWSM & RIDFvnnPl. T AUTHDRITY K=M, Iv1IIeM 12, 1987 PAGE 4 to Rice Creek Road based on the final plans. Usually, the professional will bring to the public body plans which are officially approved; and then after the approval of the plans, the authorization for the letting of bids and the worries about expenditures, etc., are made. It seemed like the "cart before the horse" here. Here they are being asked to approve monthly payments from some sort of plans that are not done yet for some kind of road for an underdetermined amount of money. Mr. Newman stated the City Council acts as the HRA's agent when it comes to public improvements. In that regard, the City Council goes through each specific procedure, and, in essence, this resolution was authorizing the City Council to let the contracts, go through the necessary procedures, and the HRA was making funds available to the City Council to authorize the payment. Mr. Newman stated Mr. Meyer's point was well taken, and perhaps some wording should be added to the resolution to say that the HRA authorizes reimburse- ment not to exceed the allocated budget amount. Mr. Newman stated what happens and what has happened in the past was that the City Council and the Public Works Department work with the consulting engineer on the final plans. The HRA was authorizing the City Council and the Public Works Department to take the necessary steps for them, and they were acting as the HRA's agent. Mr. Meyer stated it just seemed a little odd to say they are going to pay the City of Fridley on a monthly basis for the cost of street improvements to Rice Creek Road. That was what was being said in this resolution, and he did not think it was good business. The resolution did not say how much the street improvements were going to be, and it did not say what the improvements are to Rice Creek Road. But, the improvements, as defined here, are contained in the documents which are still being drawn and which have not been seen or approved by the City. Mr. Newman stated this issue has cane up in the past. It goes back to how much authority the HRA wants to give to the City Council. Mr. Meyer stated he did not think there was anything wrong with authorizing the City Council to be the HRA's agent to develop plans and specifications. And, then, at such tine as the plans come before the City Council for final approval, it seemed to him there could perhaps be a second resolution. Mr. Prairie stated he felt the HRA could trust the City Council to act on their behalf. Also, for expediency, it was probably better since the City Council meets more times a month than the HRA. Mr. Rasmussen stated he would prefer to let the City Council handle this. Mr. Newman stated if the HRA is going to authorize the City Council to act on their behalf, the City Council would rather have a broad resolution because then they have the flexibility to react to different situations as they arise. If the HRA wants to have a reporting Process, that was fine, but it was something Staff would need to know. 3 -F HOUSING & PMrVFJDPHM AUTHORITY MMING, NOVEMBER 12, 1987 PAGE 5 Mr. Robertson stated he certainly would be willing to keep the HRA informed and give them reports as things occur. Mr. Pribyl stated this particular contract with S.E.H. was the HRA's contract. It was more work to have to deal with it through the City Council when it is the HRA's contract. Hfiether the City authorizes the original agreement or the HRA, the Public Works Department is still working with that group and makes recommendations to both the City and the HRA. From the Finance Staff's perspective mechanically, it works much better if the HRA authorizes the contract so there is only one step to go through instead of two. He under- stood the only reason they have been going through the City in the past was so the payment could be processed sooner, and the HRA meets only once a month. while the City Council meets twice a month. Usually, though, when consultants bill on a monthly basis, they bill at the end of the month, so the HRA meets often enough to be able to accommodate most of those type of payments. Mr. Robertson stated the problem usually arises (true of more complex projects) when there are inevitable modifications that cane about; and if they don't hit the monthly cycle, there can be a month's delay. If S.E.H. could wait a month on billing, they could continue as they are now. The point was that Staff has assumed the HRA would want this set up the way things have been set up in the past with the City Council being the HRA's agent and the HRA reimbursing the City. Mr. Meyer stated he certainly had no problem with that process. He just felt it was good business for the City to have seen the final plans and have agreed that the plans, as drawn, are in accordance with the wishes of the City and the wishes of the HRA, have approved the plans, and are ready for letting the bids. (Ms. Schnabel arrived at 7 :40 p.m.) Mr. Robertson stated they could add the file number to the resolution and also the words "reimbursement not to exceed the contract amount ". He would recommend approval of the resolution with those two additions. MOTION by Mr. Rasmussen, seconded by Mr. prairie, to approve Resolution No. HRA 8 -1987, "Resolution of the Board of Commissioners of the Fridley Housing & Redevelopmnt Authority (1) Requesting that the Fridley City Council Authorize Construction of the Street Improvements to Rice Creek Road fran T.H. 65 to Central Avenue, pursuant to DPW project No. ST 1988 -2 and (2) Approving and Authorizing the Reimbursement to the City of Fridley on a Monthly Basis, for the Cost of these Street Improvements in an amount not to exceed $110,100.00. UPON A VOICE VOTE, ALL VCTING AYE, ACTING OAIFII PERSW MEYER DB=AM THE MOTION CARRIED UNANIMOUSLY. i IOUSNG and REDEVELOPMENT AUTHORITY 4 COMMISSION MEMBERS: LAWRENCE COMMERS, CHAMMAN OUANE PRARE VRGNIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: November 2, 1989 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA Barbara Dacy, Planning Coordinator SUBJECT: Rapid Oil Development Application: 57th Place Site Background On August 3, 1989, we advised the HRA of the special use permit application for reconstruction of a new Rapid Oil facility at 57th Avenue and University Avenue to replace the existing facility. Rapid Oil originally applied for a variance as well as a special use permit request. Because the existing parcel totals only 16,000 sq. ft., a lot area variance and a setback variance from University Avenue were needed. In order to avoid these variances, we advised Rapid Oil to combine the adjacent vacant lot (which they own) with the existing parcel. The lot is 40 feet wide by 160 feet deep. Rapid Oil consequently withdrew the variance application and filed for a rezoning application since the 40 foot wide parcel is zoned R -2. The rezoning application is from R -2, Two Family Dwelling, to C -2, General Business. The C -2 zoning matches the existing zoning of the Rapid Oil parcel. The special use permit and the rezoning applications were considered by the Planning Commission on September 13 and September 27, 1989, respectively. The Planning Commission recommended approval of the applications subject to the following stipulations: Rezoning application, ZOA #89 -04: 1. Compliance with the site plan submitted with the application. 2. Compliance with all the stipulations of the special use permit request, SP #89 -12. 3. Approval of the special use permit request, SP #89 -12. EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 671 -3460 FRIDLEY, MN 55432 EXT. 117 4 -A �-� Rapid Oil Development Application: 57th Place November 2, 1989 Page 2 Special Use Permit application, SP #89 -12: 1. A grading and drainage plan shall be submitted to be approved by the Engineering staff prior to issuance of a building permit. 2. The petitioner shall combine Lots 1, 2 and 3 with Lot 4 into one tax parcel. 3. Approval of the special use permit shall be contingent upon the approval of the rezoning application of Lot 4. 4. No building permit shall be issued until the contamination clean -up has been completed and satisfies MPCA standards. The City Council at the October 23, 1989, established the public hearing for the rezoning application for November 13, 1989. Current Status On October 31, 1989, Councilmember Billings met with Jack Lemley from Ashland Oil and staff. Larry Commers was invited to attend, but he could not do so. Councilmember Billings expressed to Mr. Lemley his desire to postpone a decision on the zoning applications until the soil tests have been submitted and reviewed by the staff and the HRA. Councilmember Billings also wants staff to evaluate the implications of the acquisition cost to remove Rapid Oil versus the options of keeping Rapid Oil on the site. Mr. Lemley stated that he does not believe the area is depressed enough to be considered "blight ". He stated Ashland Oil will contest any condemnation acquisition. He also wants a legal analysis of the implications and costs of acquiring the site with an approved zoning and special use permit application versus the existing situation. Mr. Lemley also stated that he wants to work with the City and the HRA to put together some type of development where a Rapid Oil facility and other uses can co- exist. His preference is to have a free - standing building immediately adjacent to the 57th Avenue /University Avenue intersection. He is willing to negotiate with the City and HRA as part of a redevelopment project such that he would be part of a multi - tenant building with the construction of the Rapid Oil facility as a first phase project. He stated that relocating his facility to another location (such as 61st Avenue /University Avenue) would not be acceptable; however, he would be willing to evaluate any proposal that staff would prepare. Rapid Oil Development Application: 57th Place ,..1 November 2, 1989 Page 3 HRA Analysis The HRA is withholding a decision about the 57th Place redevelopment project until the soil tests have been received and reviewed for the extent of contamination. Because we will be receiving the soil reports at the same time of City Council consideration of the rezoning application, Councilmember Billings has requested the HRA to analyze the following alternatives when it considers its decision regarding 57th Place. 1. The HRA decides not to redevelop the site; Ashland builds its free - standing building and existing uses remain the same. 2. The HRA decides to redevelop the Ashland Oil site and other properties as proposed by Winfield Development with a bank as the anchor tenant. 3. The HRA decides to redevelop the properties with Ashland Oil as the anchor tenant and other properties as originally anticipated in the Joe Commers' proposal. 4. Ashland Oil proceeds with its construction of a free- standing Rapid Oil facility, but in conjunction with a larger overall HRA redevelopment project. At the December HRA meeting, staff will present the results of the soil tests and will be able to provide an evaluation of the above alternatives. The trade -off appears to be the higher cost involved with taking out Ashland Oil vs. the higher property values and more desirable gateway appearance of the Winfield proposal. Summary No action is required by the HRA at this time; however, please advise us of any other issues the HRA wants to consider in relation to this project. BD:ls M -89 -671 e J " r i !•V , tB a r• . • ZS , j r •6 S c. r • r ii t o - e ie Z! J Zf v J J if ' t♦ • B ±� f fJ Z _ � rt ° r♦ , f N . N.E. • ♦ is S M mil. f " v • •f � .. ♦ F 1! --- N. E. S t . • r° r♦ t• � i a ZOA 189-04 Rapid Oil a N! /2 SEC. 23a T. 30t R 24 C /TY OF FRIDLEY 21 17 12 s L_ f.— t ~ '. rf �:! ! i // I •i • n L 3 s p t . °lt' ' J r re 'f : pE.io = •' < i• C 1 I re J r s rt J _ ' • ` 1 •• s ' rn f '� N 0,.y r• /• I• AF � 'PI• • l Tfa f rJ ,a � rr s • . l � � S. f' f d � r7 M ! r rr f tt f rr f J r• ie • ` � r. w t .e ae ,r t n •.t i � it �,: rf a r. .t ,� .t w r, •• _ _.t, I w r A..�- S W 1 J .DT TM a _ I . tl� -4- I -j'! a�' IW:A t oft We rl dr-ir- I fir location of existing Rapid Oil 24 z a . Z NEI h C a r LOCATION MAP "6'OTM AVENUE = %N.E. i •ti J' re • = rJ r• • • Y! yt rr Z •�• � • �ri7 r ♦ ' 1, •I I -j'! a�' IW:A t oft We rl dr-ir- I fir location of existing Rapid Oil 24 z a . Z NEI h C a r LOCATION MAP zu #89-04 Sapid Oil 4-D .+ gum X14: ►,`1.p pa EDUCAT ION prim MAM ,ad .�•.,� 0© p0 w(w mm s:R •,��alo �- �i�ss10 SLR Em FRIDLEY e ••�i�ii►7Y ©© ©� m© HIGH n rcr..• ��.• v.� SCHOOL to INN « bMw 6:.. a cum Al , 00 60 .cam _� , D■��0 0� �0 ..... r6 Wn 191' - � A wt1w �.. per- ©0 p0 .�� it,3 am .� 011F ����W■MA�� 7 67l�r.� VA ZONING MAP manna T-o •:A ZOA #89 -04 Rapid Oil ' �arrnb► h,�an,n�. HOUSING and REDEVELOPMENT AUTHORITY 4 -F COMMISSION MEMBERS: LAWRENCECOMMERS,CHAIRMAN I DUANE PRAME VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER q 0 No v 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. (61 Z) 571-3450 FRIDLEYs MN 55432 EXT. 117 i �/--11v OUSNG and REDEVELOPMENT AUTHORITY 5 COMMISSION MEMBERS: LAWRENCE COMMERS, CHAIRMAN DUANE PRAM VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: November 3, 1989 TO: Housing & Redevelopment Authority Members FROM: Jock Robertson, Executive Director of HRA SUBJECT: Information on Preliminary HRA Budget for 1990 Staff is currently pteparing an outline of a "maximum activity" proposed budget for the 1990 fiscal year and will have the numbers ready for your review during the month of November and action at the December meeting. This maximum activity budget presumes all projects that are currently on hold will be ready for HRA action. It will be necessary for the HRA to assign priorities to these projects in order to get maximum utility from our limited financial resources. Packet items will be provided at the November 9, 1989 meeting. JLR /dn M -89 -675 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AYE. (6 12) 871 -3460 FRIDLEY, MN 55432 EXT. 117 0 ?MPa0 reen, inc, 1660 ARBORETUM BOULEVARD. CHANHASSEN, MINNESOTA 55317 6121474-1145 10/11/89 1 �fi11i1 -•� 101 • Current Invoice Amount: 800.00 Subtotal 800.00 Total Amount Due This Billing: 800.00 P1.1 ASF I NCI UDI Rf *V- I 1 I A\CF COPY W I TH PA'Y'.1 NT OR I Nf) I CA l I I NVO I CI NillB l R O\ YOUR ' CHF CI{ STUB. PRCXJEC-1' f%U% AF CITY of F R I DI Il' l ANTI PO I NTF 6431 U\ I VFRS 1 TY AV[=tillF: K.F. NW CORNER-OF 65 R 694 F-P, ID! I;Y, 1-,\ 6 64 -37 - F R I DI [:l', !; -N S. A3? ATTIC: JOHN TI0:11150\ 571- 3450 ACCOUVT SMAN PURCHASE # ODNTRACT # TERMS DUE DATE 24 GO ! 1 88 hET 30 DAYS 11/10/89 DESCRIPTION PRICE BILLED TOTAL SI'I? I M/I I'R SYSTIA! WI NTL11 /131 Off' -OIIT 800.00 100" 800.00 COYNII • Current Invoice Amount: 800.00 Subtotal 800.00 Total Amount Due This Billing: 800.00 P1.1 ASF I NCI UDI Rf *V- I 1 I A\CF COPY W I TH PA'Y'.1 NT OR I Nf) I CA l I I NVO I CI NillB l R O\ YOUR ' CHF CI{ STUB. CITY OF FRIDLEY PUBLIC WORKS DEPARTMENT ENGINEERING DIVISION 6431 University Ave., N.Z. Fridley, MN SS432 November 9, 1989 Housing Redevelopment Authority (HRA) C/O City of Fridley John L. Robertson Executive Director - HRA 6431 University Ave., N.E. Fridley, MN 55432 HRA Members: CERTIFICATE OF THE ENGINEER We hereby submit the Final Estimate for LAKE POINTE DEVELOPMENT MAINTENANCE PROJECT NO. 187 (KRA) for Greenmasters, Inc., Waterford Park, 505 Highway No. 169, North, Plymouth, MN, 55441 We have viewed the work under contract for the construction of LAKE POINTE DEVELOPMENT MAINTENANCE PROJECT NO. 187 (ERA) and find the same is substantially complete in accordance with the contract documents. I recommend that final payment be made upon acceptance of the work by your Honorable Body and that the one -year contractual maintenance bond commence on November 9, 1989. Respectfully submitted, hn G. Flora Director of Public Works Prepared by Checked by: 7 7 -A November 9, 1989 To: Executive Director - HRA City of Fridley REPORT ON FINAL INSPECTION FOR CITY OF FRIDLEY LAKE POINTE DEVELOPMENT MAINTENANCE PROJECT NO. 187 (HRA) We, the undersigned, have inspected the above - mentioned project and find that the work required by the contract is substantially complete in conformity with the plans and specifications of the proj ect. All deficiencies have been corrected by the contractor. Also, the work for which the City feels the contractor should receive a reduced price has been agreed upon by the contractor. So, therefore, we recommend to you that the HRA approve the attached FINAL ESTIMATE for the contractor and the one -year maintenance bond, starting from the day of the final inspection that being NOVEMBER 9. 1989. _ Jon ipy6n, ConstructJon Inspector 1,* 14.1 &'Y"i J. Charles Glossop, r ident TMB November 9, 1989 City of Fridley LAKE POINTE DEVELOPMENT MAINTENANCE PROJECT NO. 187 (HRA) CERTIFICATE OF CONTRACTOR This is to certify that items of the work shown in the statement of work certified herein have been actually furnished and done for the above- mentioned projects in accordance with the plans and specifications heretofore approved. The final contract cost is $34,220.00 and the final payment of $60355.16 for the improvement project would cover in full, the contractor's claims against the City for all labor, materials and other work done by the contractor under this project. _ I declare under the penalties of perjury that this statement is just and correct. GREENMASTERB, INC. Charles Gloss , re ide-nt �s ` - "ITY OF FRIDLEY PUBLIC WORKS DEPARTMENT 6431 UNIVERSITY AVENUE N.E. FRIDLEY, MINNESOTA 55432 FROM: City of Fridley Engineering Division TO: Honorable Mayor and City Council City of Fridley 6431 University Avenue N.E. Fridley, Minnesota 55432 DATE: NOVEMccR 13, 1989 7 -C RE: Estisate No. 7 (FINAL Period 11-15-89 to 11 -15-aq FOR: 6REENMASTERS INC. WATERFORD PARK 585 HI640ky 4 169 NO. PLYMOUTH MN. 5544: LAKE P @INTE OEVELVP4EYT MAINTENANCE PnO ;EC" 418", STATEMENT OF WORK --------------------------------------------------------------------------------------------------------- - - - - -- CONTRACT ITEy Maintenance Services ESTIMATED UNIT QUANTITY PRI:E UNIT 1. 13 3= ,22 @. @@ LUMP SUM QUANTITY -HiS EST'm; T: TO'AL 8.142 1 N TOTAL AMLn�NT 34,22@.@@ CLAIMS (at meeting) x G's Ph m N O G INI d OD ka Im %u virtu rt ft Di nt. z � W a ° a Id a d- fu ga o w zQ o m a o R' o ¢' z �� �� In ti ft N•c rr C :c •• o c ko o m � 9 �+�. _�.� L.n (n oo �1 m t I N 10, 00 00 ED co 41000 0 ti Fb co To P9 R r o' v, a' � �n din °x u � a rt, o c = Id m ro o "• "- Q o � 0� rt ID FCJ "• 0 N m rr w rr ° rn � �; cn o In O o O � rn ,R o R g '� > U) (D rr .� m o .. cn rn g' R En 04 (PDJ rt LQ - LQ cn 9i C- m m A T 0-4 T 3 R7 D r m c 0 x a n cn T 0 0 Z m 3 Ln rn e F uTYoF fRIDLEY PLANNING DIVISION MEMORANDUM DATE: November 2, 1989 TO: William Burns, City Manager FROM: Barbara Dacy, Planning Coordinator SUBJECT: Progress Report on Skywood Mall Property and Twin City Federal Development Plans The City Council, as part of their authorization to extend the variance approval for one year for Twin City Federal last July, directed the City Attorney and staff to work with the Skywood Mall property owners to insure that Skywood Mall cooperates with Twin City Federal. Twin City Federal needs authorization from Skywood Mall for joint parking areas plus assistance in reconstructing the 52nd Avenue driveway entrance. On November 1, 1989 I met with representatives from Twin City Federal, Skywood Mall Partnership, Marquette Bank and Towle Real Estate to resolve these issues. The following is to occur: 1. Although the Skywood Mall partnership stated that they cannot contribute any money for improvements to the property (because of bankruptcy litigation) , they do want to cooperate with Twin City Federal and the improvement of the 52nd Avenue entrance. The City currently holds a $10,000 bond for outside improvements on the property. It was agreed that the City would pursue collecting on the bond to put toward the $30,000 necessary to complete the 52nd Avenue driveway improvements. Twin City Federal would be responsible for $20,000. 2. If the bond money cannot be obtain by the City, Skywood Mall Partnership would then evaluate whether or not adequate funds exist in the operations account (the receivership is operated by Towle Real Estate). 3. Marquette Bank requested the City to notify them as soon as possible regarding the status of the bond so that the Board of Trustees regarding the property can review and approve the proposal. J� Skywood Mall Property November 2, 1989 Page 2 4. Twin City Federal is in the process of making modifications to the agreement with Skywood Mall regarding the driveway improvement and is forwarding a new set of documents for signature to the 11 Skywood Mall partners. 5. There is approximately $1,000,000 outstanding in real estate taxes on the property. Easements and deeds necessary to accomplish the shared parking and driveway improvements cannot be recorded at Anoka County until the real estate taxes have been paid. Twin City Federal has requested the City to work with Anoka County in determining whether or not the documents can still be recorded despite the outstanding taxes against the property. Virgil Herrick agreed to speak to the County Attorney. In conclusion, the City will begin the work necessary to collect on the bond as soon as possible. I will keep you and the City Council apprised as to our progress. BD /dn cc: Virgil Herrick Jock Robertson L/ John Flora M -89 -667 RON CLARK 11 CONSTRUCTION, INC. 5114 EDINA INDUSTRIAL BLVD; EDINA. MN 55435 612 831 -2225 November 8, 1989 Mr. Jock Robertson City of Fridley Community Development Director Municipal Center 6431 University Avenue N.E. Fridley, MN 55432 Re: Mississippi and University Avenue Redevelopment Fridley, Minnesota Dear Jock: Enclosed are our conceptual site plans for the subject redevelopment. In preparing this material, we did not have access to a survey of the property. Items like traffic and parking circulation will be worked out when a survey is available. Two retail center site plans are submitted because I would prefer to include the Burger King site if we can negotiate terms with them. Both Ron and I are are excited about the potential that this site has and I am convinced that as a builder and developer of commercial and residential properties that Ron Clark Construction and the city can create a development that will define a downtown area for Fridley. I look forward to working with you on this project. Sincerely, RON CLARK CONSTRUCTION, INC. David L. Sebold DLS /cw Enclosure v v ,-..- I =- a -..1 .i - - .. - - 1 t 1 1 1 1 I 1 1 i 1 t 1 C 1 ' F ' Z 1 w ' u 1 1 1 Z t � N 1 a 1 a I g 1 � 1 1 1 i -------- - - - --I t t I t t 1 1 1 1 • 1 1 i 1 1 m 1 1 d 1 w 1 v 1 s m t . 1 1 1 1 1 1 I 1 i 1 1 1 1 --------- - - - --1 'IS Pic L N O a ,-..- I =- a -..1 .i - - .. - - 1 t 1 1 1 1 I 1 1 i 1 t 1 C 1 ' F ' Z 1 w ' u 1 1 1 Z t � N 1 a 1 a I g 1 � 1 1 1 i -------- - - - --I t t I t t 1 1 1 1 • 1 1 i 1 1 m 1 1 d 1 w 1 v 1 s m t . 1 1 1 1 1 1 I 1 i 1 1 1 1 --------- - - - --1 'IS Pic x O 1--1 E a O a 1�--t E w University Avenue •—-------------------------------------------------- - - - --1 1 ' 1 1 1 1 i 1 t 1 1 j• 1 1 L � ' 1 H 1 1 � •F. r 1 n i 1 1 ' 1 1 1 I 1 t 1 1 1 1 W 1 - ��� -- j -IS P =£ N 1 --- - - -- -- 1 a d ' - a t t -ma j 1 v m t 1 m 1 a 1 S 1 j � 1 t - 1 tr1 1 e 1 z 1 1 � 1 t t 1 v� i w t � ' I ' t ' I ' t ' t ' 1 ' t ' 1 ' I ' 1 ' =------------------------ ----------------- - -� m O H E a Q a N-1 Pic H w Id L a� m u JJ d o. M m .a y N s I i 1 1 1 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I University Avenue 1 � 1 1 1 ' 1 _ J 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 - 1 1 1 1 1 1 1 1 1 N 1 1 i 1 0, ' z I ' 0 ' ' F ' 1 1 1 a 1 1 q t ' z ' 1 � 1 1 � I 1 1 1 1 1 1 1 1 t 1 1 1 1 1 1 1 1 1 1 1 --------------------------------------- - - - - -� 1 1 1 1 1 1 1 1 1 1 1 a 1 1 J 1 Y 1 1 = 1 ! t 1 1 7 1 L I 1 1 I 1 1 i 1 1 1 ------- - - - --1 'as P =E A Z> k,00, — � 4 U'v�z© ZV'AQ . C to _ x O Lo y v U =•