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HRA 02/09/1989 - 29661M� CITY OF FRIDLEY HOIISING & REDEVELOPMENT AIITHORITY MEETING, F�BRIIARY 9, 1989 _�________________________________�__________________�___________ CALL TO ORDER• ROLL CALL• Members Present: Members Absent: Others Present: Larry Commers, Virginia Schnabel, Duane Prairie, Walter Rasmussen John Meyer Jock Robertson, Executive Director of HRA William Burns, City Manager & Director of HRA Dave Newman, HRA Attorney Rick Pribyl, City Finance Director Barbara Dacy, Planning Coordinator Bob Wojciak, Twin City Testing Corp. Mark Oppen, Twin City Testing Corp. Jack Lemley, Ashland Oil, Lexington, Joe Commers, The Commers Company J. E. Brill, Jr., 100 Washington Sq., KY Mpls. APPROVAL OF JANUARY 12. 1989, HOUSING & REDEVELOPMENT AUTHORITY MINUTES• MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the January 12, 1989, Housing & Redevelopment Authority minutes as written. IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED IINANIMOIISLY. CONSIDERATION OF WINFIELD PROPOSAL FOR REDEVELOPMENT OF 57TH PLACE: Mr. Robertson stated the HRA and Winfield have already reached a tentative agreement on the basic outline of the development agreement; however, there is a soil contamination question that has to be resolved before they can proceed with the consummation of the development agreement. Staff is recommending that an independent testing firm, Twin City Testing Corp., be retained to analyze the soil boring information submitted by Ashland Oil on this site. He stated staff has been informed by the Ashland Oil representative that Ashland has also notified the MPCA about the contamination on the site, and there is a possibility the MPCA has � -1- ,�� HOIISING & REDEVELOPMENT AIITHORITY MEETING, FTBRIIARY 9, 1989 some additional information. Mr. Robertson stated the Commission members had a copy of a letter dated February 7 from Twin City Testing outlining their services. Twin City Testing will do two things: 1. They will analyze any existing data Ashland Oil has submitted to the City or that may exist in the State agency. 2. At such time and only after they have authority to enter the site, if any additional testing or supplemental con- firmation of data is required, Twin City Testing will be authorized to do that. Mr. Robertson stated Twin City Testing has submitted a scope of their services. It appears the scope of services of both these steps can be accomplished for between $2,500-3,500. Mr. Mark Oppen from Twin City Testing pointed out that after they have reviewed the existing data, they would want to modify their proposed scope of services. Mr. Newman stated the first step which staff discussed and reviewed ^ at the joint City Council/HRA meeting a couple of weeks ago was to hire their own consultant to review the information that is already available and to get some insight into what is on the site. If Twin City Testing recommends they need additional soil borings, staff will contact Ashland Oil to see if they are willing to allow access to the property. If not, they will have to explore other available options. � � Mr. Oppen stated the first thing they will do is obtain information on the existing wells to try to find out if a chemical analysis of the water has been conducted. They will review that information and then make a decision as to whether further work will be needed. Mr. Commers asked what Winfield's position was on this. Mr. Robertson stated it is his understanding that Winfield has hired their own consultant to look at Ashland Oil's data, but the HRA deliberately made the decision to hire a separate firm rather than use the same consultant. Mr. Commers asked that in terms of the completion of the report, when Mr. Otten said 2-4 weeks for completion of the field work, when will the HRA have a final report of the findings. Mr. Otten stated the information they presented is based on the -2- � HOIISING & REDEVELOPMENT AIIT80RITY MEETING, FEBRIIARY 9, 1989 assumption that they would immediately mobilize to the site and do some soil borings. Based on the new development that there might be additional information available, the reasonable things to do would be to obtain that information and review it. It is possible they could write a report based on the available information without doing any field work. In that case, the report will be available in 2-4 weeks after the information has been made available to them. Mr. Commers stated that if they do have to do some field work, when could a report be available? Mr. Oppen stated they can mobilize to the site in approximately 1- 2 weeks to do the field work. If they did the work using on-site equipment and screened the soils, they could prepare a report within 2-4 weeks after the field work, approximately 4-6 weeks total. If they did some chemical analysis of the soil samples at the HRA's request, then there would be a time period for the laboratory to complete its analysis which would probably add another week. Mr. Robertson stated it is very important that Twin City Testing have a report available at the next HRA meeting. n Mr. Commers asked if there is any problem with Ashland Oil giving permission for Twin City Testing to get on the property if it is necessary. r"� � Mr. Jack Lemley, Ashland Oil, stated the last time he was at the meeting, he had just found out about this project. Since that time, he has become informed. He stated he is very upset that the City is trying to throw Ashland Oil off the property. Rapid Oil is a good business in the community, and it is not even being included in the redevelopment. He has furnished Mr. Robertson with a report. There are some wells on the property. He stated the HRA wants him to let Twin City Testing on the site in order to kick Rapid Oil off, and he is very unhappy about this. The HRA says they do not want a garage in the development. He stated Rapid Oil is not a garage. It is a good clean business, and it upsets him and his company that things like this are happening. Mr. Lemley stated they have drilled three monitoring wells on the property, and there is in excess of 200 parts per million in the soil. Things might be worse then they originally anticipated. He would suggest the HRA back off and let Ashland Oil clean up the property. They are planning to spend $200,000 to redo this location. -3- � HOII6ING � REDEVELOPMENT AQTHORITY MEETING, FEBRIIARY 9, 1989 Mr. Lemley stated that as far as letting Twin City Testing onto the property, he would have to say "no" at this time. He would have to get clearance through his management if it becomes necessary. Mr. Lemley introduced his attorney, Jerry Brill. Mr. Brill stated Ashland Oil is in a very difficult position. The HRA is asking them to sign their own death warrant. They want to stay in the community, either as part of a redevelopment project, or on their own. They find it hard to believe that the City finds this to be a blighted piece of property when they are willing to spend this kind of money to improve it. Mr. Brill stated Ashland Oil will take this one step at a time. The City can certainly approach them if they feel access is needed to the site, and they will respond as promptly as they can. The MPCA has been informed of this, so Ashland Oil has been apprised of their environmental responsibilities. Mr. Commers stated Mr. Brill's statement to go one step at a time is good for all of them to consider. Mr. Lemley stated as he had already said, Ashland Oil is willing ^ to clean up the property if they are allowed to do so. It is their property and their environmental responsibility. He certainly did not mean to shut the door that Ashland Oil will not consider letting the City onto the property. But, as a representative of the company at this meeting, he has to say "no" until he can discuss it with management. Mr. Burns asked to what extent is the Crosstown Bank location on the site contingent upon getting the billboard/sign on the Holiday Plus property. Mr. Newman stated it was indicated at an earlier meeting that the sign is extremely important. Mr. Burns stated he just wondered how realistic the achievement of the sign permit is. If that is going to determine whether or not Crosstown Bank goes in on the site, then that should be a consideration at this meeting. If Crosstown Bank does not get the billboard/sign, there might not be a project. Ms. Schnabel stated she raised that particular concern when she heard that Crosstown Bank wanted a readerboard sign. The City's Sign Ordinance just does not permit that type of signage. She had raised the question at the meeting attended by Mr. Dorn, Crosstown Bank, if they were going to run into problems and was the project ^ -4- J� HOIISING & REDEVELOPMENT AIITHORITY MEETINa� FEHRIIARY 9, 1989 going to fail without the signage? Mr. Joe Coauners stated he was in attendance at that meeting also, and it was very clear that Crosstown Bank needed a variance. He stated he made it clear at the July meeting when his development team made their proposal that they were not asking for any variances. Mr. Joe Commers stated his development team is still very interested and enthused about the project and working with Ashland Oil. It is still his conviction that the only way redevelopment can really happen at 57th Place is if their team or some other team includes Rapid Oil into the project. They need the cooperation of Ashland Oil and in order to get that cooperation, Ashland Oil wants to be included in the project. Things seemed to be rapidly unraveling from what was discussed at the July and August HR� meetings, and it is very disconcerting to him. He stated, again, his development team is very enthused about doing a development with Ashland Oil, and it is their conviction to stay present until something has actually happened. Mr. Commers stated that it seems apparent that in any respect, they should go ahead with Twin City Testing. It is also apparent that ,� if there are some potential roadblocks for the bank being a part of the project, those problems should be resolved as expeditiously as possible. If the Bank is asking for a variance, he hoped that can be resolved within the next 30 days. Ms. Dacy stated Crosstown Bank has applied for a special use permit for the installation of a billboard and automatic changeable sign. Staff has completed its review, and the application is being routed through the various departments. Staff has determined 2-3 variances will be needed because the sign does not meet the required setbacks. She stated she is trying to arrange a meeting with Mr. Dorn to discuss the application. Ms. Dacy stated that in 1981 Naegele submitted an application for a billboard on the opposite side of the Holiday Plus site and that was denied. So, historic factors, as well as ordinance factors, will have to be taken into consideration. She stated the special use permit will be heard by the Planning Commission on Feb. 22. Mr. Newman stated that as Mr. Commers had stated, no matter who the developer is for the site, a soil report is needed. MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to approve the retention of Twin City Testing in accordance with Twin City Testing's proposal and cost estimate dated February 7, 1989. ^ -5- 0 � HOIISING & REDEVELOPMENT AIITHORITY MEETING. FEBRIIARY 9, 1989 IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPER80N COMMERS DECLARED THE MOTION CARRIED IINANIMOIISLY. Mr. Lemley stated there was discussion previously about Rapid oil relocating onto the car lot property on the south side of SuperAmerica. He stated he, along with their real estate people,; have looked at the site and feel it is very inferior to their present location because of access and the visibility (trees which block the visibility). Mr. Commers thanked Mr. Lemley and Mr. Brill for coming to the meeting. He stated that no matter what happens, they want to get the pollution problem solved with a minimum amount of difficulty. 2. CONSIDERATION OF TANURB PROPOSAL FOR REDEVELOPMENT OF SOUTHWEST QUADRANT OF UNIVERSITY AVENiTE & MISSISSIPPI STREET: Mr. Robertson stated at the joint HRA/City Council meeting on January 30, 1989, staff had briefly outlined the Tanurb proposal. In his memo to the HRA dated Feb. 2, 1989, he had outlined the proposal in more detail. At this point, they understand that the representatives of Tanurb are doing their own market investigation ,� of the site and of the trade area. They are in basic agrement with the outline of the development agreement being presented to the HRA at this meeting. The question remains, however, of how soon Tanurb can complete their market investigations and make a"go/no go�' decision. There is a possibility that because of their obligations and the purchase options, they might ask the HRA to schedule a special meeting. Tentatively, that might be in two weeks; however, the initiative now lies with Tanurb. Mr. Commers stated there seems to be a number of issues that will have to be faced and discussed in this project, because it is entirely different from what they have normally done in the past. Mr. Newman stated that is correct. Before they ask the IiRA to act on the development agreement, staff will have to provide the HRA with an indepth financial analysis of the increment that might be generated, along with other information normally provided to the HRA. But, that is premature until they get a conceptual agreement. 3. CONSIDERATIONS OF A DRAFT INVESTMENT POLICY: Mr. Pribyl stated the HRA had received a copy of the Fridley HRA Statement of Investment Policy. This Investment Policy has been reviewed with Mr. Rasmussen. He stated the Investment Policy incorporates two different types of guidelines: ^ -6- � HOUSING & REDEVELOPMENT AIITHORITY MEETING, FEBRIIARY 9, 1989 �� 1. State Statute. The State Statute is very encompassing in what governmental agencies are actually allowed to invest in. 2. Guidelines are set up by the Governmental Finance Officers Association. Mr. Pribyl stated the Investment Policy actually defines the methodology in which the investing takes place. It also defines what types of instruments are actually allowable and also the time- line with maturities, and that is somewhat critical in this particular situation because of the development process the HRA is involved in. Mr. Pribyl stated he would like to thank Mr. Rasmussen for initiating this particular idea. It is something he felt was important long ago, and it provides safeguards for, not only the HRA members, but also himself as Treasurer. MOTION by Mr. Rasmussen, seconded by Ms. Schnabel, to approve the Fridley Housing & Redevelopment Authority Statement of Investment Policy. OPON A VOICE VOTE, ALL VOTING AYE, CHAIRPTsR80N COI�IlKERB DECLARED THE MOTION CARRIED IINANIMOIISLY. Mr. Commers stated he is very satisfied with this Investment Policy and is glad that one has been done. Ms. Schnabel and Mr. Prairie agreed. q, CONSIDERATION OF AGREEMENT BETWEEN CITY OF FRIDLEY AND SCHOOL DISTRICTS: Mr. Commers stated this was discussed again at tha joint City Council/HRa meeting which he had not been able to attend. He had voiced to Mr. Pribyl and Mr. Robertson his questions about the ultimate agreement. He stated he feels the HRA should do as much as they can for the school districts; however, he does see some problems regarding the availability of funds and what might happen. He stated he had no problem with the HRA approving the agreements and passing them on to the City Council. MOTION by Mr. Rasmussen, seconded by Ms. Schnabel, to approve the draft agreements presented by Jim O'Meara and pass them on to the City Council and then to the School Districts for their authorization. � -7- HOIISING & REDEVELOPMENT AIITHORITY MEETING, FEBRIIARY 9, 1989 �'�� IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED IINANIMOIISLY. 5. INFORMATION ON LRT DEVELOPMENT: Ms. Dacy stated Anoka County has joined forces with Hennepin County to investigate the LRT for an overall system in the metropolitan area. Anoka County has established three committees of which the City Council has appointed three representatives: Steve Billings, Intergovernmental Committee; John Flora, Technical Advisory Committee; Scott Lund, Corridor Advisory Committee. These committees are coming to decision making points about what type of "philosophy" the LRT should take in Anoka County. The philosophy debate is between a commuter route versus an urban route. Included in the HRA agenda (page 5-A) were definitions of the two philosophies. She stated, basically, the commuter philosophy is one where a rider boards the LRT at Northtown and travels to downtown Minneapolis with as few stops as possible, minimizing the travel time to downtown Minneapolis. The urban philosophy has more stops along the corridor providing more access for developments at the station locations or neighborhoods in and around the area to use LRT. ^ Ms. Dacy stated in Attachment #3, there is a comparison of travel times. She stated the preferred LRT route will start at Northtown, run south along the east side of University Avenue to I-694, go east along I-694 either on the north or south side to Central/Highway 65, and then south on Central Avenue to downtown Minneapolis. This is the preferred route of the three committees as of this date. The ultimate decision making authority will be the Anoka County Railroad Authority which in essence is the Anoka County Board. Ms. Dacy stated there is some uncertainty as to whether MnDOT will approve the LRT within the I-694 right-of-way; and if not, the optional route is to have a crossover along 73rd Avenue to Highway 65. Ms. Dacy stated a number of criteria is being looked at in trying to determine which route is the best: travel time, which route minimizes the most land use impacts, which route requires the least amount of acquisition, and which route generates the most ridership. Ms. Dacy stated it appears that north of I-694, the University Avenue route would have the least amount of impact along the right- of-way and have the most riders. South of I-694, it seems that ^ -8- r`�i �OIISING & REDEVELOPMENT AUTHORITY MEETING, FEHRIIARY 9, 1989 Central Avenue has those benefits. There is still some seesawing at this time, and the type of philosophy the communities recommend is going to be a factor in the route decision. Mr. Commers asked how the LRT will affect the University Avenue Corridor plan. Mr. Robertson stated it is compatible with the University Avenue Corridor plan. Examples of other LRT installations feature extensive landscaping, lighting, and pedestrian improvements. He stated they have also checked with Barton-Aschman, and Barton- Aschman agrees. Ms. Dacy stated that with the commuter philosophy, three stations are being proposed at the following locations in Fridley: Columbia Arena, Mississippi Street, and 57th Avenue. With the urban philosophy, the following station locations are proposed in Fridley: 81st Avenue, Osborne Road, and possibly one at 53rd Avenue (if the LRT crosses over to Highway 65). Ms. Dacy stated she would like to talk about the station locations because they can affect some of the upcoming projects the HRA will be dealing with. For example, at 57th Avenue, a station location � is proposed in the immediate area between the Rapid Oil building and the University Avenue Corridor and that would provide parking for 44 cars. They are also looking at a park and ride facility in the southwest corner of University/I-694 next to The Cattle Company. Ms. Dacy stated that at their February 8th meeting, the Planning Commission said they would like all the park and ride facilities located on the same side of the right-of-way as the LRT stations. At this particular intersection, they are aware in concept of the possible redevelopment. Their suggestion was to encourage Anoka County to take the used car lot for parking. They wanted the HRA to be aware that this particular site is being looked at as a station location; and maybe through negotiations, accommodations can be made on the site plan for some park and ride facility. Ms. Dacy stated the Planning Commission is equally concerned with the impact on the University Avenue Corridor proj ect and made a statement that a lot of attention must be paid to landscaping, screening, and lighting. Their concern is that the location of the parking area is literally "on top" of traffic lanes and maybe there should be more separation between the street and the LRT tracks. Ms. Dacy stated the LRT would be at grade, and it would have its own exclusive right-of-way. It will be able to override traffic ^ -9- HOIISING & REDEVELOPMENT AIITHORITY MEETING, FEBRIIARY 9, 1989 ,'�`1 signals on University Avenue. It will be a two track system with three cars, one driver, with a capacity of 500 people. Mr. Rasmussen asked about the timetable. Ms. Dacy stated the preliminary engineering phase is going to take 1-1 1/2 years to complete, then funds must be acquired, so they are looking at 2-5 years before the system is implemented. Ms. Schnabel asked if the used car lot became a park and ride facility, would the station location have to be there too? Ms. Dacy stated it did not have to be located there. It could be a"walk-up"--just a platform on a concrete slab. So, the actual station might just be a glorified bus shelter. She stated the advantage of a parking facility and a station at this location is the closeness to I-694 for people coming from the east and west who could park and the ride the LRT downtown. Ms. Schnabel stated a statement has been made recently that there is more traffic between suburbs than there is between suburbs and the core city. This LRT system will not really address that situation; it will basically get people in and out of downtown � Minneapolis. Ms. Dacy stated the consultants from Anoka County admit that, initially, through the Anoka County route, this route will connect to the Hennepin County system. Hennepin County proposes to build four lines at once to try and build on a radial approach to the metropolitan area so eventually a person starting at Northtown can get to the airport or the Megamall or the Hopkins area. They will admit this will not provide the alternative means or access for someone from Fridley to get to Maplewood, for example. The majority of the ridership (80%) will be using the facility for commuter trains. Ms. Dacy stated another park and ride facility is being proposed on the north side of 10, 000 Auto Parts store. They have found from other cities that have LRT that LRT does tend to increase retail sales per square foot of existing development. So, it could be an enhancement to existing businesses in Fridley. Ms. Dacy stated that as far as the Columbia Arena site, the Planning Commission has a lot of concerns about having a station there for three reasons: (1) the lack of direct access into 71st Avenue and the rather circuitous access into the facility; (2) no east/west direct link from Highway 65; (3) a park and ride facility had been looked at for 71st Avenue, but this has been approved for '�` -10- ;�1 � HOIISING & REDEVELOPMENT AIITHORITY MEETING, FEBRIIARY 9, 1989 an industrial subdivision. The Planning Commission wanted the consultant to look at Osborne Road as a commuter station, rather than Columbia Arena. Ms. Dacy stated it is the Planning Commission feeling that the parking at Immanual Christian Center located near Osborne Road and University Avenue is underutilized and maybe this could be a potential site for investigation for a park and ride facility. Ms. Dacy stated the Planning Commission feels a commuter station should be at Osborne Road, Mississippi Street, 57th Avenue, and they do not feel there should be a station location at the Lake Pointe site if the route goes along I-694. They feel that if there is sufficient area at 57th to provide adequate parking, because Lake Pointe is in such close proximity, that could serve as an access for any potential Lake Pointe development. Ms. Dacy stated the Planning Commission is more in favor of the commuter philosophy. If the urban philosophy is chosen, they can live with it; but they wanted the stations on the east side of the right-of-way, adequate landscaping, and that the bikeway/walkways be left in place. Ms. Schnabel stated that even if there is a station location at 57th Avenue, it might be more convenient for employees from Lake Pointe to have a station at Lake Pointe. Ms. Dacy stated another reason the Planning Commission thought a station at Lake Pointe might not be necessary is because some companies provide shuttle bus services, and maybe this could be implemented in this situation. 6. INFORMATION ON FRIDLEY PLAZA OFFICE BUILDING: 7. Mr. Robertson stated that at the January meeting, he was asked about the amount of rent billed to the HRA for the office building in the amount of $3,209.56, and Mr. Pribyl had confirmed that was for monthly rent for the office building. Mr. Robertson stated that as they went to press with this agenda, they understood that the closing for the sale of the Fridley Plaza Office Building was imminent. Mr. Newman stated the closing will probably be Feb. 15-16. CLAIMS (1857-1864): MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the ^ -11- HOIISING & REDEVELOPMENT AIITHORITY MEETING, FEBRIIARY 9, 1989 check register as presented. IIPON A VOICE VOTE� AI,L VOTING AYE, CHAIRPER80N COMMERS DECLARED THE MOTION CARRIED IINANIMOIISLY.• Mr. Pribyl of billing personnel. The total 1988. stated he had included information on the total amount on behalf of the City personnel that also double as HRA This is based on a request made by the HRA last year. cost of personal services is $106,820.12 for the year OTHER BUSINESS• a. Brickner Proposal, Old Central Avenue (memo from Jock Robertson dated Jan. 5, 1989) Mr. Robertson stated this was for the HRA's information. He stated Mr. Brickner will have a neighborhood meeting, and the City Council has requested no action be taken by the HRA until they see the results of that meeting. Mr. Commers stated he would like something from the City Council that tells the HRA why they should approve Mr. � Brickner's project when other projects have been put on hold pending the senior housing study. Mr. Brickner's project is obviously an excellent project, and he has done a lot for the City of Fridley and they should help him, but it is still a fact that they have to treat these developers fairly. b. c. old cub Foods site Mr. Burns stated another Canadian developer, Southam Corporation, out of Winnipeg, is interested in developing the Cub Foods site for a six-theatre movie house plus some retail. They are not asking for any tax increment financing. Staff has told them about the Tanurb site, and they would be interested in that site if the Tanurb project does not go. Mr. Burns stated he budget for the HRA, HRA. has asked Mr. Robertson to prepare a 1990 and he hoped this is agreeable with the The Commissioners concurred with having a budget prepared. IIniversity Avenue Corridor Project Mr. Burns stated he has never had the benefit of any discussions regarding the University Avenue Corridor. He has '� -12- ^ $OIIBING & REDEVELOPMENT AIITHORITY MEETING, FEBRIIARY 9, 1989 asked Mr. Robertson and Mr. Flora to review the project for the City Council after their March 6th meeting. He stated they are due to go out for bids in April, and he wanted to know if the HRA supported this project. Mr. Commers stated the HRA has certainly supported and approved of the University Avenue Corridor project. Mr. Commers stated that Ms. Schnabel chaired the Technical Advisory Committee that put the project together, and she would be an excellent resource person. Mr. Robertson stated he is preparing a summary of key decisions and dates for Mr. Burns ta be used as a review document. Mr. Commers stated one of the biggest issues that has been a negative for the HRA is the maintenance and who pays for the maintenance. Ms. Schnabel stated a concern she had is that having waited two years to get the project off the ground once the commitment was made, the cost might be in error now. ADJOURNMENT• MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CO1�iERS DECLARED THE FEBRUARY 9, 1989, HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 9:10 P.M. Res ectfully submitted, o ����_ Lyn Saba Recording Secretary ^ -13-