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HRA 12/14/1989 - 29668�,i '--1 � CITY OF FRIDLEY HOIISING & REDEVELOPMENT AIITHORITY MEETIN(3, DECEMBER 14, 1989 �_�����_����..�_...._���_..��������»����..»�����������������..������..�» CALL TO ORDER• Vice-Chairperson 5chnabel called the December 14, 1989, Housing & Redevelopment Authority meeting to order at 7:15 p.m. ROLL CALL• Members Present: Members Absent: Virginia Schnabel, Duane Prairie, Walter Rasmussen Larry Commers, John Meyer Others Present: Jock Robertson, Executive Director Rick Pribyl, Finance Director Tim Turnbull, Public Safety Special Coordinator Dave Newman, HRA Attorney Bruce Carlson, Northco Corporation �� � i;�:�. Projects APPROVAL OF OCTOBER 12. 1989. HOUSING & REDEVELOPMENT AUTHORITY MINUTES• MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to approve the October 12, 1989, Housing & Redevelopment Authority minutes as written. IIPON A VOICE VOTE, ALL VOTINt�i AYE, CBAIRPERBON COA�IERB DECLARED THE MOTION CARRIED UNANIMOIIBLY. 1. CONSIDERATION OF PROPOSALS FOR REDEVELOPMENT OF SOUTHWEST OUADRANT OF UNIVERSITY & MISSISSIPPI STREET BY: ATLAS DEVELOPMENT CORPORATION BOISCLAIR CORPORATION RON CLARK CONSTRUCTION, INC. Mr. Robertson stated that in the past two weeks, staff has received some information about an organization which is also interested in the southwest quadrant site. This organization has requested confidence about its identity at this point and additional time to prepare an outline of its proposal for this site. Staff has met with this organization's staff, and City staff feels the proposal is realistic enough to be considered. Secondly, the potential return on the investment to the City on this particular development would be substantially superior than the other three proposals for this site. He believed it would be in everyone's best interest to HOIIBING � REDEVELOPMLNT AIITHORITY MEETINa, DEC. 14, 1989 PAdE 2 ,� take the additional time to get this proposal developed and evaluated. Mr. Robertson stated staff has informed the three other developers of this new proposal, and they have acquiesced to not attend this meeting in order to give the City more time to evaluate this fourth proposal. He stated he anticipated this would take at least 3-4 months. He suggested the HRA table discussion on this item. MOTION by Mr. Prairie, seconded by Mr. Rasmussen, to table discussion of the proposals for redevelopment of the southwest quadrant of University and Mississippi. IIPON A VOICE VOTE, ALL VOTIld(� AYE� VICE-CHAIRPER80N SCffi�TABEL DECLARED THE MOTION CARRIED ONANIMOIISLY. 2. CONSIDERATION OF CONCEPT OF PAY-AS-YOU-GO TIF ASSISTANCE TO PHASE III NORTHCO BUSINESS PARK: Mr. Robertson stated the HRA members received an outline of the proposal by Northco Business Park for Phase III of the development on the southeast quadrant of 73rd Avenue/University Avenue. As shown on agenda page 2-E, Northco has purchased and begun redevelopment on the old Carter Day facility, characterized as ,,.� Phase II of the new plat, which is between Carter Day and the � frontage road. Mr. Robertson stated this particular proposal is for approximately a 2 1/2 acre site within the turnback loop between the frontage road and University Avenue. The proposal is for an 18,000 sq. ft., one story commercial/office building with the anchor tenant being a branch of Western State Bank. Mr. Robertson stated that regarding the soil conditions, the site is low and has wet soil that would have to be removed and backfilled. The estimate for that cost is $70,000. The site would also have to be raised a minimum of 2 feet for a cost of approximately $25,000. Mr. Robertson stated he has met with Mr. Bruce Carlson, Executive Vice President of Northco. Mr. Carlson has given staff some preliminary construction estimates. Mr. Carlson is at the meeting with some more detailed drawings, and he will give a brief outline summary of his proposal and answer any questions the HRA might have. Mr. Robertson stated the pay-as-you-go concept would be the same concept staff proposed for the SBF Cinemark development where essentially the HRA would give the grant, not at the time of the certificate of occupation of the building, but at the time the �''� taxes are received which might be over a 2-3 year period. There �\ HOII3ING & REDEVELOPMENT AIITHORITY MEETING, DEC. 14, 1989 PAGE 3 is no risk to the HRA, and it helps Northco with soil correction work. Mr. Carlson stated Northco has been redeveloping the old Chicago ATorthwestern site. They have been concerned about the possible development of this turnback site in front of their site because they wanted to hopefully encourage a quality development that would enhance their business park. The City recently wrestled with the Phillips Petroleum Company proposal for the possible use of this site for another filling station. He stated that from a planning standpoint, it was something neither the City nor Northco was interested in seeing go onto this site. Mr. Carlson stated Northco has been working with Mr. A. William Sands, Chairman of Western State Bank, and several other tenants to develop and design a building as a one-story business center. They hope to have tenants such as insurance offices, mortgage companies, perhaps some food, dental, medical, travel agency, real estate, printing. Mr. Carlson stated the entrance to the project would be off 73rd Avenue and off the frontage road in front of the industrial park. The building essentially orients itself to the two main streets, University Avenue and 73rd Avenue. The site will have adequate � parking. The main problem is the poor soil conditions. � Mr. Carlson stated that with the HRA's assistance, they hope to be in a position by the spring of 1990 to go through all the necessary processes, get the project financed, and commence construction. He stated this is not a very large project, but a project they feel is very important for their business park. Ms. Schnabel asked why the site needs to be raised 2 feet. Mr. Carlson stated the site is like a dish and it has bad black soils. In order to get the building in the right location and to get good drainage, they need to raise the elevation of the site. Mr. Rasmussen stated this looks like a very good plan. Mr. Robertson stated one of the things the HRA is concerned about with any project is that it be a quality of development that is significantly different than the "run of the mill" building which might be built without financial assistance. Mr. Robertson stated Northco is getting ready to submit an application for a rezoning from manufacturing to contmercial. Mr. Carlson stated they are not absolutely certain that this project even requires a rezoning, because the tenants may be business-oriented enough to fall under the M-2 zoning. They are doing the rezoning mainly to have the flexibility in the leasing. HOIISING & REDEVELOPMENT AIITHORITY MEETIN�3, DEC. 19, 1989 PAGE 4 Mr. Robertson stated staff is recommending the HRA approve the project in concept and to authorize staff to start the mechanism to create an economic development district, give public notice, and have a public hearing before the City Council. That will take approximately 45 days from this point. MOTION by Mr. Prairie, seconded by Mr. Rasmussen, to approve the concept of "pay-as-you-go" TIF assistance to Phase III Northco Business Park, and to authorize staff to draft a development agreement and begin the process to set up an economic development district. IIPON A VOICE VOTE, ALL VOTINa AYE, VICE-CHAIRPER80N BCHNABEL DECLARED THE MOTION CARRIED IINANIMOIIBLY. 3. CONSIDERATION OF PLAZA RAMP ELECTRONIC SURVEILLANCE SYSTEM: Mr. Robertson stated that in August 1989, Mr. William Burns had made a proposal to the HRA to consider adding electronic surveillance to the ramp to be in the form of both a TV camera and sound monitoring equipment. At that time, the HRA authorized staff to advertise for bids and bring those bids back. Staff received one bid from Security World for a total of $10,973. Mr. Robertson stated Tim Turnbull is at the meeting to give any additional information needed. Staff is recommending approval of the bid. Mr. Turnbull stated the HRA has had several discussions on this particular project, and he was at the meeting to answer any questions the HRA members might have. He stated Security World is an excellent company. Security World and its subdivision, Access Control, is the company that provided the electronic security for the Municipal Center and the video security for the holding facility in the Police Department. The equipment met all the specifications. The company has installed and done whatever training was necessary, and there have been no problems. This company has performed very well under previous contracts and he would certainly recommend approval of the bid. MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to receive the bid for the Parking Ramp Security Surveillance System from Security World, Inc., for a total of $10,973.00. OPON A VOICE VOTE, ALL VOTING AYE, VICE-CBAIRPER80N BCHNABEL DECLARED THE MOTION CARRIED IINANIMOIIBLY. MOTION by Mr. Prairie, seconded by Mr. Rasmussen, to award the contract to Security World, Inc. (Access Control Tech.) for the Parking Ramp Security Surveillance system. ��'1 j'� HOIIBIN(3 � REDEVELOPMENT AIITHORITY MEETING, DEC. 14, 1989 PAGE 5 �PON A VOICE VOTE, ALL VOTIN(,i AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED IINANIMOIIBLY. 4. CONSIDERATION OF PAYMENT OF RICE CREEIC ROAD IMPR0�7EMENTS: Mr. Robertson stated this was on the ATovember agenda, and there was no meeting. He stated he received a request from Larry Commers asking staff to provide additional material on the history of the funding procedure for this project. He also prepared a little more background information with a map that was handed out at this meeting. Mr. Robertson stated that of the roughly $1,200,000 that was budgeted for the Rice Creek Road improvements (East Moore Lake Drive), the HRA will recover $714,000 over 13 years. The actual cost to the HRA is $1,058,858.43, and staff is recommending the HRA authorize a payment in that amount to the City of Fridley. Mr. Robertson stated $.4 million was approved in December 1986 as part of the HRA's conceptual 5 year capital improvement program. It was for the improvement of the intersection of Rice Creek Road and T.H. 65. He stated $.6 million was approved in December 1987 for upgrading the stretch of Rice Creek Road which has been renamed East Moore Lake Drive in conjunction with the Moore Lake Commons Shopping Center development. The arrangements that were made for recovering part of that cost of the intersection and the road are shown on agenda page 4-B. Essentially, as part of the development agreement, the developers agreed to pay back an assessment for those improvements totalling $714,000. That assessment is paid back over 13 years by the City and as the City collects that assessment, it is then turned back to the HRA account. MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to authorize staff to issue a check to the City of Fridley in the amount of $1,058,858.43 for the Rice Creek Road improvements. �PON A VOICE VOTE, ALL VOTINa AYE, VICE-CHAIRPER80N SCBNABEL DECLARED THE MOTION CARRIED IINANIMOIIBLY. 5. COATSIDERATION OF RECEIVING INFORMATIONAL ITEMS IN PACKET - NO ACTION RE4UIRED: MOTION by Mr. Prairie, seconded by Mr. Rasmussen, to receive the following informational items: 1. Information on Crampton request to forgive remaining portion of mortgage 2. Information on 1990 meeting dates � 3. Information on 57th Place redevelopment alternatives HOIISING & REDEVELOPMENT AIITHORITY MEBTINa, DEC. 14. 1989 PAGE 6 ,� 4. Information on preliminary HRA budget for 1990 5. Information on proposed LRT stations at University Avenue at 57th Avenue and Mississippi Street 6. Information on Old Central Avenue Redevelopment Plan 7. Information on Americor proposal for southwest quadrant IIPON A VOICE VOTE, ALL VOTINa AYE, VICB-CHAIRPER80N BCHNABEL DECLARED T8E MOTION CARRIED IINANIMOIIBLY. The HRA members were in agreement with the 1990 meeting dates as proposed; however, they asked that all the members be polled before the next meeting regarding the meeting time. Mr. Robertson stated the preliminary HRA budget for 1990 will be an action item at the January meeting. He would like the members to review the budget and come back with ideas and priorities on the projects. Those projects noted with a* are projects most likely for consideration in 1990. 6. ESTIMATES: � GREENMASTERS, INC. - TURF FERTILIZATION AT LAKE POINTE: MOTION by Mr. Prairie, seconded by Mr. Rasmussen, to approve the estimate in the amount of $400.00 for turf fertilization at Lake Pointe. IIPON A VOICE VOTE, ALL VOTIN(� AYE, VICE-CHAIRPER80N 8CffiJABEL DECLARED THE MOTIOIJ CARRIED IINANIMOIIBLY. 7. CLAIMS• MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to approve the check register dated December 13, 1989. IIPON A VOICE VOTE, ALL DOTIN�3 AYE� VICE-CHAIRPLR80N BCHNABEL DECLARED THE MOTION CARRIED IINANIMOIIBLY. 8. OTHER BUSINESS: Mr. Robertson stated staff has been notified by their financial consultant, Jim Casserly, that there is some potential new interpretation of the statutes on the tax increment financing bonds which implies the possibility that in situations in pre-1979 districts, if the servicing of the bonds runs out by the year 2001, that is the end of the district. In the light of the discussion about a new development on the southwest quadrant, he has asked Mr. �°"� Casserly to look into what the HRA's options may be for extending ,� HOIISING & REDEVELOPMENT AUTHORITY MEETIN�3, DEC. 14. 1989 PAGB 7 the life of that district by an additional bond sale. This information will be coming back to the HRA. Mr. Robertson stated the same thing is true of economic development districts. There may be some pending state legislation at the session that starts in February that will more restrict economic development districts. Although most of the City's districts are redevelopment districts, they do use economic development districts for soil correction. If, in the next month or so, it appears that there will be pending legislation that would somehow tie the HRA's hands in creating these districts, staff may come back to the HRA with some proposals that would preempt this legislation from cutting off that option. Mr. Pribyl called the HRA's attention to his memo to Jock Robertson dated December 8, 1989, re: Change in Methodology for Charging HRA for Administrative Staff Time. Mr. Robertson called the HRA's attention to a memo from William Burns dated December 14, 1989, giving the results of the December il, 1989, Council Conference meeting on "TIF Guidelines for Senior Housing". He would recommend the HRA review this memo and decide whether they want to adopt it as part of the policy for calendar year 1990 or whether they want to wait and consider it as part of ,,,� an overall policy guide for the TIF program which is part of the 1990 workplan. Ido action is required at this time. ADJOURNMENT: MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to adjourn the meeting. IIpon a voice vote, all votinq aye, Vice-Chairperson Schnabel declared the December 1�, 1989, 8ousinq & Redevelopment Authority meetinq adjourned at 8:20 p.m. Respectfully sub 'tted, �, � Ly e Saba Recording Secretary ,�