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City of Fridley
A G E N D A
HOUSING & REDEVELOPMENT AUTHORITY MTG., MARCH 8, 1990, 7:00 P.M.
Location: Fridley Municipal Center
6431 University Avenue N.E.
City Council Chambers
CALL TO ORDER:
ROLL CALL:
APPROVAL OF MINUTES: February 8, 1990
ACTION ITEMS•
4
RESOLUTION ON $9,445,000 TAX INCREMENT REFUNDING BONDS. . .1����
s
RESOLUTION DIRECTING STAFF AND HRA CHAIRPERSON
TO APPROVE A DEVELOPMENT AGREEMENT WITH NORTHCO ,U0
IN SUBSTANTIALLY THE SAME FORM AS PRESENTED . . . . . . . .2 - 2J
UCD DEVELOPMENT PROPOSAL FOR 10,000 AUTO PARTS SITE . . . .3 - 3J
- Recommendation to Planning Commission
- Outline concept of Development Agreement
- Set schedule for TIF district expansion
SOUTHWEST QUADRANT POLICY DIRECTION . . . . . . . . . . . .4 - 4A
CLARK ENGINEERING ET AL VS. FRIDLEY HRA . . . . . . . . . .5
LAKE POINTE MAINTENANCE CONTRACT AWARD. . . . . . . . . . .6 - 6A
CLAIMS . . . . . . . . . . . . . . . . . . . . . . . . . . 7
INFORMATION ITEMS:
57TH PLACE STATUS . . . . . . . . . . . . . . . . . . . . .8
FICEK GOLF RANGE PROPOSAL FOR LAKE POINTE . . . . . . . . .9 - 9A
REPLACEMENT OF STREET LIGHTING POLES &
FIXTURES AT MOORE LAKE COMMONS . . . . . . . . . . . . . . 10 -10B
OTHER BUSINESS
10"1 ADJOURNMENT
n,
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 8, 1990
----------........--......----.... ---------
.. .._...._..................�.._-
CALL TO ORDER:
Vice Chairperson Schnabel called the February 8, 1990, Housing and
Redevelopment Authority meeting to order at 7:15 p.m.
ROLL CALL:
Members Present: Virginia Schnabel, Duane Prairie, John Meyer
Members Absent: Larry Commers, Walter Rasmussen
Others Present: Jock Robertson, Executive Director of HRA
William Burns, City Manager & Director of HRA
Rick Pribyl, Finance Director
Dave Newman, HRA Attorney
Jim Casserly, Casserly Molzahn & Associates
Barbara Dacy, Planning Coordinator
William Nee, Mayor
Nancy Jorgenson, Councilmember -at -Large
Steve Billings, Councilmember
Dennis Schneider, Councilmember
Ed Fitzpatrick, Councilmember
Pat Woolrich, Miller & Schroeder
APPROVAL OF DECEMBER 14 1989 HOUSING & REDEVELOPMENT AUTHORITY
MINUTES•
MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve the
December 14, 1989, Housing & Redevelopment Authority minutes as
written.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
ACTION PENDING:
1. OUTLINE OF DEVELOPMENT AGREEMENT FOR PROPOSED PRO ENGINEERING
PLANT:
Mr. Robertson stated that Pro Engineering intended to buy the
western portion of the plant site owned by Serve America
Corporation on the northwest corner of Fireside Drive and Central
Avenue. Between the time Pro Engineering submitted a purchase
agreement to Serve America Corporation and now, in a nation -wide
restructuring of Serve America, Serve America has decided to change
JOINT HOUSING is REDEVELOPMENT
AUTHORITY /CITY COUNCIL MEETING. FEBRUARY 8, 1990 PAGE 3
3. LANG RANGE TIF OPTIONS FOR THE SOUTHWEST OUADRANT:
Mr. Robertson introduced Mr. Pat Woolrich from Miller Schroeder who
has been working with Mr. Casserly and staff on this issue.
Mr. Robertson stated that staff was alerted in December that the
changes in the state TIF legislation restricted the life of pre -
1979 districts where the debt has expired by the year 2001.
Originally, that pre -1979 district, Center City, envisioned the
life of the district extending out to about the year 2010. It
became increasingly apparent to staff that because of the long lead
time they have experienced in trying to get development completed,
especially in the southwest quadrant, they might want to consider
some mechanism whereby they can re- establish the original life of
the district after it has been truncated by the legislature.
Mr. Burns stated that for the last two weeks, staff has been
grappling with the issue of how to meet the demands imposed by
state law. Staff has done a very thorough review of this and has
had the opportunity to talk to two different financial consultants
and received proposals from the two financial consultants. Staff
is now ready to provide the HRA and City Council with some good
information and recommendations on how to handle the challenge the
state has given them. That wouldn't have been possible without
participation from Rick Pribyl, Dave Newman, Jim Casserly, and Jock
Robertson. They have had a number of brainstorming sessions, one
of which involved Mayor Nee and HRA Chairperson Larry Commers.
Mr. Burns stated he would serve as a moderator and would like to
divide the discussion into three major areas: Overview, Refinance,
and G.O. or Revenue Bonds. He would like to first present the
"Basic Issues" and then come back later to try to resolve the basic
issues. He stated Mr. Robertson has outlined the problem, and they
must now decide how they are going to meet the deadline the state
law imposes. They need to have some sort of debt obligation that
exists up to the year 2009; otherwise, they lose their ability to
collect TIF on the southwest quadrant and also on the 10,000 Auto
Parts site between the years 2000 and 2009.
Mr. Burns stated the decisions fall into approximately four
categories:
1. Do we refinance?
2. If we refinance, which refinancing resources do we use?
3. Do we issue a revenue or G.O. Bonds?
4. Do we bid the underwriting services?
JOINT HOUSING & REDEVELOPMENT
AUTHORITY /CITY COUNCIL MEETING, FEBRUARY 8, 1990 PAGE 4
Mr. Burns stated they briefly looked at the possibility of doing
a bond issue. For a variety of reasons, they decided that was not
the route to go and instead decided to consider refinancing the
existing debt they issued in 1985 and restructured again in 1986.
Between what they have done in 1985 and 1986, there is about $11.5
million in bonds that were issued for projects at Lake Pointe, the
southwest quadrant, and a variety of other projects. When they
talk about refinancing, they are talking about refinancing what is
left of the $11.5 million in debt that was issued in the mid -
1980's.
Mr. Burns stated that given their current cash flow situation and
project needs at this time, do they want to refinance? They will
be looking at the cash flow situation and their project needs and
see how they balance out. Staff is recommending the refinancing
and they hope the HRA and City Council will come to some decision
at this meeting.
Mr. Burns stated that if they refinance, which refinancing
resources do they use: Full refinance, full defeasance with level
payments over the period between now and 2000, full refinancing
with deferred principle out beyond the year 2000, or partial
refinancing (advanced refunding)? Staff is recommending full
refinancing - deferred principal.
Mr. Burns stated the third issue is whether to issue a revenue or
G.O. bond. The major difference is that with a revenue bond issue,
only revenue from the TIF districts is pledged to retire the bonds.
Under a G.O. bond issue, the fiscal resources (property taxes) of
the City become pledge to retire the bonds. Because of the greater
security of the G.O. bond issue, staff is recommending they issue
a G.O. bond.
Mr. Burns stated that assuming they go with a revenue bond, do they
bid the underwriting services? Since staff is recommending a G.O.
bond issue, the answer is "no ". But, if the HRA decided to go with
the revenue bond proposal, they would have to look at that in more
detail.
Mr. Burns stated he would now like to conduct an "Overview ", to
show the cash flow status for the various TIF districts in the City
of Fridley (Jim Casserly), look at the project status (Jock
Robertson), and the cash flow versus project needs (Jim Casserly).
Mr. Burns stated they will get into the issue of whether or not to
refinance. Mr. Casserly has some financing scenarios to present
to the HRA and Council. He, Mr. Burns, will be talking about a
recommendation and justification.
Mr. Burns stated then they have to discuss the major issue of
whether to use G.O. or revenue bonds, advantages and disadvantages.
,11-�
11-1
JOINT HOUSING & REDEVELOPMENT
AUTHORITY /CITY COUNCIL MEETING, FEBRUARY 8, 1990 PAGE 5
Mr. Burns stated that following the overview of all these issues
and, hopefully, coming to some decision, assuming the word is "go"
on any one of these scenarios, he would then like to talk about an
implementation schedule. The first step of the implementation
schedule would be to have a resolution before the Council on
Monday, February 12, 1990, to get this whole process started. A
special HRA meeting would tentatively be scheduled for March 1,
1990, and, ultimately, a final approval of the bond sale on March
7, 1990, at a special Council meeting.
Mr. Burns stated he would like Mr. Casserly to talk about the cash
flow picture.
Mr. Casserly stated he would like to thank Mr. Burns, Mr. Pribyl,
Mr. Robertson, and Mr. Leon Madsen, City Assessor, for the hours
of work put into this. He stated they have spent the last 1/2
weeks trying to analyze each one of the existing tax increment
districts and all the HRA's expenses related to those districts to
try to come up with reasonable assumptions. Some time in the
future when there is more time, it might be appropriate to review
each of those districts with the HRA. In order to find out if it
made sense to do any kind of bonding, whether refunding or new
money, they needed to look at what revenues are available to the
HRA's program. There are gross funds available of approximately
$15 1/2 million, given the expenses that currently exist. The
present value in 1990 dollars is approximately $13 million.
Mr. Robertson stated that at the last meeting, the HRA members had
received a preliminary outline of their 1990 budget. In that
budget, they listed all the projects that may come in line in 1990.
He asked the HRA to think about what priority these projects would
be: high, medium, low. Since they are looking at the year 2000,
what projects are they most likely to be looking at in the next 3-
4 years in terms of how they will choose to proceed to use the
accumulated balance. From the discussions they have had so far,
the following projects seem to have the highest priority:
1990 10,000 Auto Parts $ 500,000
1991 Residential rehab 500,000
1991 Southwest quadrant 4,500,000
1991 57th Place 500,000
1991 Gateway project (Univ. Ave. no. of I -694) 1,000,000
1992 Lake Pointe 5,000,000
1993 Moon Plaza Shopping Center 2.700,000
TOTAL $14,700,000
Mr. Burns stated all of these monies are monies above and beyond
the tax increment that would be generated by each project.
JOINT HOUSING i REDEVELOPMENT
AUTHORITY /CITY COUNCIL MEETING. FEBRUARY So 1990 PAGE 6
Mr. Robertson stated that since one of the issues the HRA is going
to discuss is what would happen between the year 2000 and 2010,
what might be the need? Staff then added other things that have
been discussed from time to time for which the HRA might want to
consider having additional funds available:
Water quality in Moore Lake
Old Central redevelopment
Onan Corporation
Junkyard removal
Old Central street improvement
Vantage II
Osborne Road Center
University Avenue
SBF / /Osborne Crossing (Old Cub Foods site)
Dredging of Moore Lake
FMC Corporation
Totino redevelopment
Mr. Robertson stated these are potential uses of their overall tax
increment program if they wish to proceed.
Mr. Burns stated they now have to relate the projects needs back
to the revenue and see what the balance looks like.
Mr. Casserly stated that if the projects reviewed by Mr. Robertson
were to take place in the timeframe over the next four years
($14,700,000), and they were to bring them back into the present
value in 1990 dollars, it would be about $13 million.
Mr. Casserly stated the point of his message is that if the HRA
wants to create some flexibility and they want to give themselves
some additional options, one of the things they can do is take some
of the known expense (debt service expense) and spread it out. By
spreading it out, it allows the HRA to work with some additional
revenues in the 1990's. If they don't need the revenues, they have
to go back to the taxing jurisdictions to pay off the bonds. It
is not a bad time to be looking at refunding. Some of the rates
are very advantageous at this time.
Mr. Burns stated what staff is trying to show the HRA and Council
is the magnitude of the projects needs versus the magnitude of the
cash flow. And, the basic question facing the HRA and City Council
is whether they want to refinance or not. He stated Mr. Casserly
will review the refinancing scenarios and costs associated with
those scenarios.
Mr. Casserly stated that beginning with the assumption that the HRA
wanted to have some savings during the 1990's so they could invest
JOINT HOUSING i REDEVELOPMENT
AUTHORITY /CITY COUNCIL MEETING. FEBRUARY S, 1990 PAGE 7
in other opportunities, he looked at six different kinds of
scenarios, Full Defeasance Bonds (A, B, C) , and Crossover Bonds (D,
E, F) .
Mr. Casserly reviewed the refinancing scenarios.
Mr. Billings stated that if they refinance at a lower interest rate
and if they were to make the same monthly payments they are making
now, how much less will it cost them to the year 2000, and would
that amount be enough to cover the cost of refinancing?
Mr. Casserly stated the question is not easily answered. He would
have to do an analysis to determine that. The only restraints on
that is that they will have a lower interest rate on the new bonds,
just because the rates are less today than when they sold the
original bonds. The problem is that on bond issues, they cannot
make those kind of orderly increased payments.
Mr. Billings stated that on the particular bonds they are talking
about refinancing, would they make a payment monthly, quarterly,
or annually?
Mr. Casserly they would pay interest semi - annually and principal
annually.
Mr. Billings asked how much they were paying every year in
interest.
Mr. Casserly stated that to the year 2000, if they were to pay in
accordance with its present structure, they would pay a gross
amount of $13.5 million on the present funds.
Mr. Burns stated the question now is whether the City Council and
HRA want to refinance the existing debt. Mr. Casserly showed about
$14.9 million in very roughly estimated projects costs and about
$14 million in carefully estimated revenues. Costs approximate the
revenues. Staff is recommending refinancing. The reason for
suggesting refinancing is not because they have a debt service
problem with the existing bond issue. They have plenty of money
to pay it off; however, the problem is that if they do not have any
debt beyond the year 2000, they will not be able to take advantage
of the TIF from the pre -1979 district as they once did. In order
to give them a little more flexibility, the HRA gains the
refinancing and the additional TIF from extending the debt service
during the period 2000 -2009. They are looking at $700,000- 800,000
per year from the existing districts during that span of time.
Ms. Schnabel asked how Mr. Commers feels about the refinancing.
1 Mayor Nee stated Mr. Commers is very much in favor of the
refinancing. He stated he is also in favor of the refinancing.
JOINT HOUSING it REDEVELOPMENT
AUTHORITYICITY COUNCIL MEETING. FEBRUARY 8, 1990 PAGE 8
Councilmember Schneider stated he had some philosophical concerns
about this. He thought TIF works to build concrete and mortar
buildings, because it changes the balance of the economic courses,
where it is suddenly economically viable to build something on a
piece of property that otherwise would not have been built. But
forcing something to be built doesn't give it the economic vitality
to survive and keep going. It seems like they are helpless to help
some of the really practical kinds of things that really need
helping, i.e., Totino's, FMC. The refinancing pushes it out again,
and it can just go on forever.
Ms. Schnabel stated she agreed with Councilmember Schneider. A lot
of these projects that the HRA has helped would never have been
built if the HRA had not subsidized them. And, maybe some of those
projects should not have been done.
Councilmember Schneider stated that at some time, maybe staff can
put together a list of TIF projects and indicate which ones are
economically related and which ones are not.
Councilmember Jorgenson stated they are looking at a couple of
areas that are expanding into TIF districts, and one is for office
facilities and possibly a bank. There is already a 30% vacancy
rate in the City of Fridley. It seemed to her that as they build
more new office in the City, they are drawing tenants to the new
facilities and creating vacancies in some of the older areas. She
had real concerns about expanding any further into the tax
increment districts.
Mr. Casserly stated that what some cities are doing is using tax
increment to provide equality of land cost. Most of the time they
are not helping with an office subsidy or land subsidy, all they
are doing is if a developer wants to build, the developer has to
pay the going rate per square foot. The HRA will act as a
redeveloper to help the developer pay the difference for taking
properties, taking old buildings down, and putting up something
more valuable.
Mr. Billings stated that in terms of buildings being empty, there
is no way anyone can know what is in the mind of the tenant.
Mr. Burns stated office space is not one single monolithic element.
There are different kinds of office space; and depending on what
the HRA uses as an incentive to support, they may or may not dilute
the market for someone else. They have to be very careful about
evaluating projects before the HRA gives them any money.
Mayor Nee stated he shared the reservations being expressed;
however he felt they should keep their options open for the next
ten years. They should not cripple their ability to deal with some
JOINT HOUSING & REDEVELOPMENT
AUTHORITY /CITY COUNCIL MEETING. FEBRUARY So 1990 PAGE 9
of the problems they have in Fridley. If there is a public
investment in the southwest quadrant, they should make it available
for a tax increment repayment and a 4 -5 year timetable is very
realistic.
Councilmember Schneider stated that, financially, it seems to make
sense to refinance. He just had trouble with the philosophical
dilemma of how they make sure:
1. That some of the districts do get retained to the City
and schools;
2. That as they do more and more, they are not just building
brick and mortar; that they some -times have a grasp on
the financial liability of every project.
Ms. Schnabel stated that probably at some point, the HRA is going
to have to make some philosophical decisions. Are they better off
putting money into a project that won't show very much (FMC, for
example) or are they better off putting money into projects like
the Stinski building that show up in the City? And, how is the
general public going to perceive that?
Mr. Prairie stated he would think the HRA would want to help the
1 older businesses in Fridley before helping the new.
Mr. Robertson stated that as staff went through this exercise, he
was surprised to be reminded that some of the stimulation they did
in the North Area Redevelopment District has borne fruit. They
have the Maerten warehouse and the Northwest Orthopaedic Surgeons
building in the North District. Those projects did not receive
HRA aide.
Mr. Burns asked for a decision on whether they should refinance or
not refinance.
Councilmember Fitzpatrick stated he felt refinancing is the only
game in town right now, and they either play it or not.
Councilmember Billings stated that based on the information he has
available for analyzing at this time, he is in favor of
refinancing. However, he did want to look into a few more things.
Councilmember Schneider asked Mr. PribylIs feelings on refinancing.
Mr. Pribyl stated that in his opinion, refinancing seems to be the
viable alternative. At what level of development is a question the
HRA and Council will have to decide. Refinancing seems to make
sense as long as there are "call" provisions in the document.
JOINT HOUSING & REDEVELOPMENT
AUTHORITY /CITY COUNCIL MEETING, FEBRUARY 8, 1990 PAGE 10 •..�
Councilmember Schneider stated he reluctantly agreed, but still had
some doubt as to whether this is the right thing to do. Before the
Council votes on this at their next meeting, he would like to see
a list of successful HRA projects.
Mr. Robertson stated the HRA and Councilmembers had received this
a draft copy of "Projects Receiving HRA Assistance" in their
information packet.
Councilmember Jorgenson stated she can see the reason and logic
behind refinancing and will vote "yes ", but she sees it as a catch-
up stick to what the Legislature did last year. They can do this
now, but what is the Legislature going to do in its next session?
Mr. Prairie stated he would go along with staff's recommendation
to refinance; however, they should keep in mind the comments made
at this meeting that they should look at projects more closely and
make an effort to try to end some of the districts.
Mr. Meyer agreed.
Mr. Burns stated staff is also recommending they issue G.O. bonds.
MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve the
refinancing procedure with the General Obligation Refunding Bonding —�
scenario (C), full refinancing /deferred principal beyond the year
2000, and to authorize the issuance of a general obligation bond.
Ms. Schnabel stated she concurred with all that has been said. She
liked the built -in escape clause to have the options of repayment,
and she would vote in favor of the motion.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
Mr. Burns stated the HRA has voted in favor of staff's
recommendation to refinance and go with full refinancing with
deferred principal and G.O. bonds. Did the Council also concur?
All the Councilmembers stated they were supportive of staff's
recommendation.
Mr. Casserly reviewed the Implementation Schedule. He stated it
is important for the HRA to have a special meeting to pledge tax
increment for bond issue around March 1.
The HRA tentatively set a special meeting on Monday, March 5, 1990,
at 6:00 p.m.
JOINT HOUSING 6 REDEVELOPMENT
AUTHORITY /CITY COUNCIL MEETING. FEBRUARY S. 1990 PAGE it
Ms. Schnabel stated that on behalf of the HRA, she wanted to
express the HRA's appreciation for all the time and effort staff
and Councilmembers have put into all of this.
4. RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES:
NOTION by Mr. Prairie, seconded by Mr. Meyer, to approve Resolution
No. HRA 2 -1990, "Resolution Designating Official Depositories for
the Fridley Housing and Redevelopment Authority ".
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
5. CLAIMS•
MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve the Check
Registers dated January 10, 1990, and February 8, 1990, as
presented.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
INFORMATIONAL:
6. 57TH PLACE /RAPID OIL STATUS:
MOTION by Mr. Prairie, seconded by Mr. Meyer, to receive the
informational items on 57th Place /Rapid Oil.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
7. REDEVELOPMENT PROPOSAL FOR 10,000 AUTO PARTS SITE:
Mr. Robertson stated an informal neighborhood meeting will be held
on Thursday, February 15. This is preparatory to the public
hearing for a rezoning of the property before the Planning
Commission. It is at that point that the City Council will make
a determination on whether to proceed with the rezoning.
MOTION by Mr. Meyer, seconded by Mr. Prairie, to receive the
information on the redevelopment proposal for the 10,000 Auto Parts
site.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
JOINT HOUSING & REDEVELOPMENT
AUTHORITY/CITY COUNCIL MEETING, FEBRUARY Be 1990 PAGE 12
ADJOURNMENT:
NOTION by Mr. Prairie, seconded by Mr. Meyer, to adjourn the
meeting. Upon a voice vote, all voting ape, vice - Chairperson
Schnabel declared the February 8, 1990, Housing and Redevelopment
Authority meeting adjourned at 11:00 p.m.
Respectfully sub 'tted,
Lynng Aaba
Recording Secretary
OWING and REDEVELOPMENT AUTHORITY
1
COMMISSION MEMBERS: LAw ENCE commERS, CMAi1MAN
DIANE PRAlIE 1II1QMA SCMNABEL WALTER RASMUSSEN JOHN MEYM
CITY OF FRIDLEY
DATE: March 2, 1990
TO: Housing and Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: Resolution on the $9,445,000 Tax Increment
Refunding Bonds
At_ the February 8, 1990, joint meeting of the Housing and
Redevelopment Authority and the City Council, the Council and HRA
reviewed and approved the refinancing procedure with general
obligation refunding bonds to extend the life of the Center City
TIF district beyond the year 2000 to the year 2010. Subsequently,
at a regular Council meeting on February 12, 1990, the Council
authorized that sale.
As a follow -up to these actions, the HRA is asked to take action
on a resolution approving and authorizing the execution of the tax
increment pledge agreement regarding this $9,445,000 general
obligation tax increment refunding bond issue of 1990.
As we go to press, we are still awaiting copies of the resolution.
It will be mailed to HRA members as soon as it is received from our
bond counsel, Jim O'Meara of Briggs Morgan. Contrary to hi--
previous recommendation that a special HRA meeting be set for
Monday, March 5, 1990, to approve this resolution, it is now the
unanimous opinion of our bond counsel and HRA counsel that this
resolution can be acted on at the regular HRA meeting on March 8,
1990.
JR:ls
M -90 -154
EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (d 12) 571 -345
FRIDLEY, UN $5432 EXT. 117
OVSNG and REDEVELOPMENT AUTHORITY
2
COMMISSION MEMBERS: LAWRENCE COMM MS. CHAPMAN
MIME pRAME VMgm SCHKASEL WALTM RASMUSSEN JOHN MEYM I '
CITY OF F'RIDLEY
DATE: March 1, 1990
TO: Housing and Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: Resolution Directing Staff and Chairperson to
Approve a Development Agreement with Northco
in Substantially the Same Form as Presented
At the February 26, 1990, meeting, the City Council set up a 2.4
acre short -term economic development TIF district for the purpose
of assisting this project with a soil correction grant. This grant
is to be in the form of a pay -as- you -go revenue note for an amount
not to exceed the $70,000 required for the soil correction work.
Preliminary estimates indicate that this would be approximately the
first three years of taxes. Therefore, this TIF district could be
retired in three or four years of increment at the discretion of
the City Council. (See January 12, 1990, attachment.)
A draft Development Agreement has been prepared and is currently
being reviewed by Northco.(*) Staff recommends adoption of the
attached resolution authorizing us and the HRA Chairperson to
approve the Agreement in substantially the same form as presented.
* See packet for draft copy.
JR:ls
M -90 -141
EXECUTIVE DIRECTOR: JOCK ROBERTSON •431 UNIVERSITY AVE. is 12) 671 -3460
FRIDLET.IIN 55432 EXT. 117
RESOLUTION NO. HRA - 1990
RESOLUTION DIRECTING THE FRIDLEY HOUSING AND
REDEVELOPMENT AUTHORITY STAFF AND CHAIRPERSON
TO APPROVE A DEVELOPMENT AGREEMENT IN
SUBSTANTIALLY THE SAME FORM AS PRESENTED
WHEREAS, Northco is proposing the purchase and development of the
2.4 acre site between University Avenue frontage road immediately
south of 73rd Avenue for an 18,400 square foot, one block, one
story, commercial and office building; and
WHEREAS, Northco estimates that the total cost of construction of
the project will be approximately $850,000; and
WHEREAS, the site has wet soil that will have to be removed and
backfilled for an estimated cost of $70,000; and in addition, the
site will have to be elevated a minimum of two feet for proper
drainage at an estimated cost of $25,000; and the contractor
estimates that with normal soil conditions, site preparation costs
would be in the neighborhood of $6,000; and
WHEREAS, at the December 14, 1989, meeting the Housing and
Redevelopment Authority recommended that the City Council set up
a short -term economic development district for the purpose of
assisting this project with a soil correction grant; and
WHEREAS, at the February 26, 1990, meeting the City Council set up
a short -term economic development TIF district for the purpose of
assisting this project with a soil correction grant; and this grant
is to be in the form of a pay -as- you -go revenue note for an amount
not to exceed the $70,000 required for the soil correction work;
and preliminary estimates indicate that this would be approximately
the first three years of taxes; therefore, this TIF district could
be retired in three or four years of increment at the discretion
of the City Council; and
WHEREAS, a draft Development Agreement has been prepared and is
currently being reviewed by Northco;
NOW, THEREFORE, BE IT RESOLVED, that the Fridley Housing and
Redevelopment Authority authorizes the staff and Chairperson to
approve the Development Agreement in substantially the same form
as presented.
2 -A
Resolution HRA - 1990
PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND
AUTHORITY OF THE CITY OF FRIDLEY THIS DAY OF
1990.
ATTEST:
JOHN L. "JOCK" ROBERTSON
EXECUTIVE DIRECTOR
REDEVELOPMENT
LAWRENCE C. COMMERS, CHAIRPERSON
2 -B
2 -C
12- Jan -90
---------------------------------------------------------------------------
ORIGINAL ESTIMATED
(Al5q TAX
ESTIMATED
TAX
LESS
ADMIN
AVAILABLE
TAX
# OF
(AWA)
TAX
YEARS
DATE
CAPACITY
CAPACITY
INCREMENT
EXPENSES
INCREMENT
---------------------------------------------------------------------------
0.0
6
/90
9,695
9,695
0
0
0
0.5
12
/90
9,695
9,695
0
0
0
1.0
6
/91
12,710
41,250
0
0
0
1.5
12
/91
12,710
41,250
0
0
0
2.0
6
/92
16,661
42,488
13,950
698
13,253
2.5
12
/92
16,661
42,488
13,950
698
13,253
3.0
6
/93
21,842
43,762
12,623
631
11,992
3.5
12
/93
21,842
43,762
12,623
631
11,992
4.0
6
/94
28,633
45,075
10,714
536
10,178
4.5
12
/94
28,633
45,075
10,714
536
10,178
5.0
6
/95
37,537
46,427
8,036
402
7,634
5.5
12
/95
37,537
46,427
8,036
402
7,634
6.0
6
/96
49,208
47,820
4,346
217
4,128
6.5
12
/96
49,208
47,820
4,346
217
4,128
7.0
6
/97
64,509
49,255
0
7.5
12
/97
64,509
49,255
0
8.0
6
/98
84,567
50,732
0
8.5
12
/98
84,567
50,732
0
9.0
6
/99
110,862
52,254
0
12
199
110,862
52,254
0
1(.
6
/00
145,332
53,822
0
------------------------------------
99,339
4,967
94,372
ORIGINAL TAX CAPACITY
ADJUSTMENT FACTOR
ESTIMATED MARKET VALUE
ESTIMATED TAX CAPACITY
YEAR CONSTRUCTED
YEAR ASSESSED
YEAR TAXES PAYABLE
CURRENT TAX CAPACITY RATE
(PAY 1989 RATE ASSUMED; 1990 UNAVAILABLE)
INFLATION
ADMIN EXPENSE
9,695
1.310936
850,000
41,250
1990
1991
1992
0.977560
CASSERLY MOLZAHN & ASSOCIATES
3.000%
5.000%
6
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1. The HRA has undertaken and will continue to undertake,
pursuant to and in conformity with the HRA's statutory powers,
certain public improvements (the "Improvements ") within and for the
benefit of the HRA's Redevelopment Project No. 1.
2. In order to finance the Improvements and at the request
of the HRA, on December 30, 1985, the City issued its $11,550,000
Variable Rate Demand General Obligation Tax Increment Bonds, Series
1985 (the "Series 1985 Bonds ").
3. On August 15, 1986, the City issued its $10,045,000
General Obligation Tax Increment Refunding Bonds, Series 1986 (the
"Series 1986 Bonds "), dated as of August 1, 1986, for the purpose
of crossover refunding the Series 1985 Bonds.
4. It is necessary and desirable that the City issue, and the
HRA hereby requests that the City issue, its General Obligation Tax
Increment Refunding Bonds of 1990, to be dated as of March 1, 1990,
and issued in the estimated principal amount of $9,485,000 (the
111990 Bonds ") in order to advance refund the remaining principal
of and interest on the Series 1986 Bonds.
5. The Tax Increment Pledge Agreement attached hereto and
made a part hereof is hereby approved, and the officers of the HRA
are hereby authorized and directed to take such steps as may be
necessary to execute said Agreement, in substantially the form as
attached, upon approval and execution thereof by the City, and to
carry out and fulfill the provisions and requirements thereof.
6. The Board finds that it is necessary to retain the
approximately $2,400,000 of unspent proceeds of the 1985 Bonds for
ongoing development and redevelopment costs incurred and to be
incurred by the HRA within and for the benefit of its Redevelop-
ment Project No. 1. The officers of the HRA are authorized and
directed to execute, in connection with the issuance of the 1990
Bonds, such certificates as may be required or requested by bond
counsel with respect to past and future project activities,
expenditure and application of proceeds of the 1985 Bonds and other
matters, and such certificates shall constitute representations of
the HRA.
Adopted by the Board of Commissioners of the Fridley HRA this
8th day of March, 1990.
ATTEST:
Executive Director
713
Chairman
11�
SITE AREA:
BUILDING AREA:
BUILDING CONSTRUCTION:
ANCHOR TENANT:
BAY SIZES:
PARKING SPACES:
SPRINKLER:
mm984nor.mlp
DESCRIPTION OF IMPROVEMENTS
Approximately 2.39 acres.
18,400 square feet rentable. ,
One -story block building with brick
veneer, aluminum frame windows with
insulated glass. Pitch and gravel built
up roof over metal deck. Post and beam
over on grade slab. Rooftop HVAC
units., Common bathroom area, trash
enclosure.
Western Bank. 3,500 square feet.
Additional bays: 800 -3,000 square feet.
Approximately 124 spaces.
No system required.
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17 - O:i-89
_
1 4OU SO FT
sm. DESCRIPTItRi LIMITS MATEP.IAL
LABOR
SUBS
TOTAL
COST /SF SITE COSTS 9fcl -L �
� i E
1000 MERAL COCITIONS
32,000
16,000
64, ow
112,000
$6.09
moo
28,866
0
83,134
0
0
0
2100 SITE DR3 IDEIMJTION
'1'.200
25,000
0
- EXtxTdaTION
2500 s� -RASE i DRAIIIA�
1122' LO
� 000
f0.65
$1.43
I?, 000
26,340
0
0
0
0
M, A91W0,
26,340
10,000
26;340
10,000
$0.54
10,000
0
0
Y700 COIF. UWQ
7, SM
7'm
$0.43
7,955
0
(+
2130 CONC. SIDEI#L' K
2800 LA16E1P INGS - A
15, 000
1`p 000
$0.62
15,000
C
0
-w1r,
3200 COtCP-Te IEINFOR IM 3300
0
51,081
0
51,081
$0.00
112.78
0
0
51,081
0
MW CAST_10-PLACE CONC
4200 UNIT MASNRY BRICK
59, 712
21, 712
$3. W
0
0
5%712
730
0
0
5100 STRICT. PemiJD m/DEEK
60,369
21,361
815730
$4.44
sm MISC. PETALS
6100 Rte. CAR7ENTRY
1�
5,000
fh
11,000
110.60
110.00
0
0
11,000
0
0
0
LOW M116i1A
0
0
10.00
0
0
0
7200 INSILAT ION IN 9250
46,438
46,438
112.`2
0
46+438
0
7500 .- ^.A.TIC SIe:: RODE
0
$0,00
0
0
0
7600 FLA�a"10 S-C !£TiL
$
397
f3 07
0
* 397
0
7800 NFU STD SEAN ROOF
1,875
1,875
$0.10
0
1,875
,%0 CRIU.W, :iOLANTS
8100 PETGC DODRS/FR* S
2,545
920
0
3,46,
110.19
0
0
3, 465
2,665
0
8200 W= DOORS
2,145
wo
0
0
2,66.,
0
$0.14
$1.57
0
0
0
8300 STE:,'P DOORS
28,800
28,800
$1.57
0
2811800
0
64tH.' ALUK ENTRIES
0
0
110.00
0
8.500 AWN NINDWS
6700 FIr,.Sli HARDNARE
4,500
720
0
r
%no
$0.28
$0400
0
0
ern
.h"
0
0
0
8800 HASP AND E:A:itE
0
42,248
0
4.0,246
42, 248
+
SM, 6YP. DRr%, / STL STIM
110.00
0
0
60 BY-3-TEN
5,320
5,20
$0.23
0
5,320
0
S CERAMIC
9300 CXUGT
2,250
:,�
1& 10
0
y' x4
C;L EAT
9M A^'311' 104-
0
0
$0.00
0
0
FLOORING
9650 tE;I_ Jv: F OORIN6
2,400
2,400
110.13
0
2, 400
0
%ao CARS= IN:'
3,000
3,OOD
$0.16
0
3,000
0
0
0
$0.00
0
0
0
9950 WNIINA': CmsP NIC
LO180 TOIL_R t1)vAFTiGNTS
3,150
1,575
4,�
0
4, 0
0
C
0
300
4.00
60.(C
0
�
0
10500 FIP_ EXTItE::iSERS
10800 TO.'_ A.-= SSORi =S
1,350
405
0
1,rz
$0.10
0
0
1,7W.,
0
0
0
11870 L.O:DINE M. EW, NIC
0
0
0
0
$0.00
$0.00
0
0
14000 ELE%7OPS NIC
0
0
$0.00
0
0
0
15000 1`L40!JNS IN 1`'..'00
67,000
67,000
113.64
0
67,000
0
15700 N V.A.w
' 0
0
$0.00
0
0
O
15500 FIRE PROTECTION
31}850
31,850
11.7;
0
31,850
0
16000 ELE:T£i
10,.'SD
10,250
110.56
10,2`,0
0
0
SITE LiaiTItE
$UBMIAL ....................
113,134
24,590
687,75`
800,476
$43.50
206.311
594,165
0
LABOR BURDEN
45.0000%
11,066
0
$0.60
so. 00
2,852
0
8,214
0
0
Ate
0.`.�'WD%
4,162
$0.23
1,073
3,090
0
GEN LLIAc INSLIP.I
XDRS RISK t LIND INS
(BY OWNER)
0.1211%
969
5.603
110.05
$0.30
2%
1.444
720
4,159
0
0
BLIILDINS GEWT
0.7000%
0.000*%
0
$0.(K:
0
0
0
10&-IF RED
in soft cost
0
$0.00
0
0
0
Sx 10z
Br, 277
$44.69
211,930
610,346
0
SUBTOTAL...............................
...............................
CONi19'7O9S FES 4. tKr% .......... ...............................
32,891
$1.79
8,477
24,414
0
07%,168
$46.48
220,407
634,760
0
TOTALC OS T .............................
...............................
A5.' ?QJIAN I JISRDV XLONAIm:
SC. FT.
RATE
TOTAL
0
IESTERN BANK R.LOiiANCE
3.500
$7.50
26,2°.,0
$1.43
$L O7
�
111, , �W +
SPEC ALLOIUN%
14, 900
$7.50
111,7-k
TOTAL wST J1''IIDIN6 {2J,p{61M...........
18,100
117.50
13N OCID
$7.50
220, 407
634,760
Ix o(+U
IOUSNG and REDEVELOPMENT AUTHORITY
3
COMMISSION MEMBERS: LAWRENCE COMMERS, CHAIRMAN
MIAW PAW VMGNA W MASEL WALT81 RASMUSSEN JOHN MEYER
CITY OF FRIDLEY
DATE: March 2, 1990
TO: Housing and Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: Proposed Redevelopment of 10,000 Auto Parts Site
by Urban Commercial Developers
Urban Commercial Developers, Inc., (UCD), proposes to develop a
28,000 sq. ft. shopping center on an expanded 10,000 Auto Parts
site. The proposal is consistent with the Center City
Redevelopment Plan. On January 25, 1990, the Anoka County Regional
Rail Authority, at the urging of Mayor Nee, approved a concept plan
integrating the proposed development with a projected light rail
transit park and ride station (see map) instead of the County
simply acquiring the 10,000 Auto Parts site.
UCD originally estimated that the market value of the project would
conservatively be $2.6 million. On January 4, 1990, staff
recommended that the HRA give concept approval to this development
which would be funded on a pay -as- you -go grant from 5 -8% of the
total project value. However, on January 17, 1990, UCD changed
their request for assistance from a $250,000 pay -as- you -go to a
$350,000 grant upon completion, presumably to cover the cost of
acquiring the two residential properties to the east. Therefore,
staff requested additional financial data from the developer in
order for a pro forma analysis to be done by our financial
consultant, Casserly Molzahn. This analysis indicates that
competitive lease rates would force the project to be valued at
$1.7 million. This would require a 14 1/2 year bond to generate
the requested $350,000 assistance (see Casserly Molzahn memo).
A payback period of this length raises serious priority issues
concerning the southwest quadrant. The attached "Priority Logic"
diagram indicates that the UCD proposal with Walgreen as an anchor
tenant would move a mixed use development of the southwest quadrant
toward more residential units and less commercial area, if the
large corporate developer were not to use the site. They have told
the City that they expect an indication within a week now.
Staff continues to work out the traffic flow issues raised by the
proposed project. The major consideration for HRA is acquisition
ffTIVE DIRECTOR: MOCK ROBERTSON 0431 UNIVERSITY AVE. (412) 571 -3450
t RIDLEY. MN 55432 EXT. 117
Proposed Redevelopment of 10,000 Auto Parts
March 2, 1990
Page two
of properties in the southwest quadrant in 1990 to enable the
County to improve Mississippi Street in 1991 (see memo from Barbara
Dacy) .
Under these circumstances, we recommend that the HRA discuss these
issues and give the staff a policy direction to continue refining
the proposal. At the April 12, 1990, meeting the HRA would:
- Make a recommendation to the Planning Commission on the
specific redevelopment plan
- Consider concept approval of the Redevelopment Contract
- Make a recommendation to give notice for public hearing to
expand the TIF district to include the two additional
single family units
The attached schedule indicates a proposed sequence of City
actions.
JR:ls
M -90 -153
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-AREA TO BE CONSIDERED 1
1
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7-77
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ftiwr ' orov/�+p CeMerl Q -I..5 . 1
PROPOSED P A -T
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PERSPECTIVE
Casserly Molzahn & Associates, Inc.
215 South 11 th Street, Suite 200 • Minneapolis • Minnesota 55403
Office (612) 342 -2277 • Fax (612) 332 -4765
MEMORANDUM
TO: Jock Robertson
FROM: Mary Molrahn
RE: Urban commercial Developers
66th & University Avenue /10,000 Auto Parts Site
DATE: March 1, 1990
The attached cash flow concerning the above proposal, indicates
that a 14 -1/2 year taxable bond at 9.5% is necessary to generate
$350,000 for the developer's tax increment financing assistance
request. In addition to the assumptions listed on Page 2 of the
analysis, there are a few additional comments.
1. This analysis assumes that the two houses necessary for the
proposed project can be qualified as a Redevelopment TIF
District.
2. This analysis is based on an estimate of taxes payable for
1989. We do not have available the parcel numbers or market
values for pay 1990.
3. This analysis includes no inflation. This should counteract
any additional decrease in class rates that may be proposed by
the Legislature.
if you have any additional questions or comments, please call.
/��
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CENTER CITY REDEVELOPMENT
l'`,
1ST PRIORITY; SOUTHWEST
QUADRANT - 10 ACRES
IF
Corporate
200,000 square feet,
and parking ramp
PRIORITY LOGIC
1 2ND PRIORITY; NORTHEAST
QUADRANT - 3 ACRES
Corp. does not expand
or goes elsewhere
Mixed use; 150 apart-
ments, and 10,000 square
feet of service /enter-
tainment
Mixed use; Ron Clark -
100 apartments and
50,000 square feet of
retail with Walgreens
as anchor
U.C.D. convenience
retail - 28,000 square
feet, with Walgreens
as anchor
I Two story office /bank
} 20,000 square feet ?
3 -H
PLANNING DIVISION 3 -1
EM RA
M DUM O N
cITYOF
FR! DLEY
DATE: March 1, 1990
TO: Jock Robertson, Executive Director of HRA
FROM: Barbara Dacy, Planning Coordinator
SUBJECT: Fridley Town Square (10,000 Auto Parts)
The petitioners are requesting a rezoning from C -1 and R -1 to S -2,
Redevelopment District for the above referenced project. The
purpose of the redevelopment district is to allow for a mixed use
development within established redevelopment districts and to allow
for the maximum flexibility in the promotion of difficult
redevelopment projects. Further, the purpose of the S -2 district
is to allow for development based on a plan which is acceptable to
the City and the overall redevelopment district development plan.
The district requires that plans for each individual project or a
combination of projects be reviewed by the Housing and
Redevelopment Authority prior to consideration by the Planning
Commission and City Council (Section 205.22.06).
The developer is acquiring (and, in fact, has entered into a
purchase agreement) the two single family homes immediately east
of the project site. The additional frontage along Mississippi
Street moves the driveway entrance into the site as far east as
possible from the intersection of Mississippi and University.
Concerns were raised at the neighborhood meeting as to whether or
not the proposed development would be adequately served by
Mississippi Street, especially for the left turn movements into the
site from eastbound Mississippi Street traffic.
The Mississippi Street improvement project (lane additions and
signalization improvements) has been planned by Anoka County at the
time the southwest quadrant is to be redeveloped. Anoka County has
reviewed the impact of the proposed development and has recommended
lengthening the existing median to he east as an interim measure
to guide left turn movements.
The proposed entrance into the development as compared to
existing entrance is an improvement; however, he long term
solution would be to complete he overall plan for the Mississippi
improvement. The 1proposed der to accommodate hispdevelopment, asuwell
� January of 1991.
.1
n
Fridley Town Square (10,000 Auto Parts)
March 1, 1990
Page two
as possibly improving interest in the southwest quadrant by
improving the access, we recommend the HRA commit to acquiring at
least the Levy and Fitch properties in the southwest quadrant as
soon as possible (see next agenda item).
Further, with the exception of the two single family properties,
the site has been in the Center City redevelopment district since
1978. The proposed project is consistent with the objectives of
the Center City redevelopment plan. It would be easier for the
City to acquire the properties affected and dedicate the necessary
easements to the County. The biggest impact for the acquisition
of easements would be Kiffe's Automotive and the Dairy Queen.
Should the development in the northeast quadrant occur, another
similar retail project is probably not feasible in the southwest
quadrant. Specifically, the Ron Clark proposal contains 100
apartment units and 50,000 sq. ft. of retail with Walgreen as an
anchor. Rather, a professional building, a corporate headquarters,
or more housing still are other alternatives.
BD:ls
M -90 -155
3 -J
W
10.000 AUTO PARTS
(FRIDLEY TOWN SQUARE)
PROJECTED SCHEDULE
February 8, 1990 HRA meeting - information item
February 9, 1990 Apply for rezoning to S -2
February 13, 1990 Light Rail Transit meeting
February 15, 1990 Neighborhood meeting
April 12, 1990 HRA makes recommendation to the Planning
Commission regarding plan and
considerations
HRA approves Development Contract concept
approval contingent on City Council
rezoning
HRA gives notice for TIF district
expansion public hearing
April 25, 1990
Planning Commission meeting on rezoning
May 7, 1990 City Council establish public hearings for
May 21, 1990, on rezoning and TIF district
expansion to include two single family
parcels
May 21, 1990 City Council conducts public hearing on
rezoning
June 4, 1990 Approve rezoning and first reading of
ordinance
1> Second and f inal reading of ordinance when
Development Contract signed and
stipulations met
Public hearing to expand TIF district
3 -K
IOUSNG and REDEVELOPMENT AUTHORITY
4
COMMISSION MEMBERS: LAW ENCE COIMMERS, CMARMAN
WAIF P RARE YRGW SMASEL WALTER RASMUSSEN JOHN ME"M
CITY OF FRIDLEY
DATE: March 1, 1990
TO: Housing and Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: Policy Direction for Southwest Quadrant
Chairperson Larry Commers has asked the staff to revisit the
possibility of the HRA acquiring the Levy property. It appears
that the owner, Fred Levy, has a potential buyer and developer for
his site, and the proposal does not need any assistance or zoning
approvals from the City. If we intend to develop this site, it is
probably best for the HRA to acquire its control. Staff told Bob
Levy, the owner's representative, that this item would be on the
March HRA agenda in order to encourage him not to sign a purchase
agreement with his developer and to discuss with him whether or not
he currently has a listing agreement with any realtors.
Bob Levy has indicated that he will make every effort not to enter
into a purchase agreement with his buyer while at the same time
attempting not to lose this potential buyer. If, in fact, his
representation is true, then it would be incumbent upon the HRA to
acquire control of this site since allowing it to develop in the
interim would only increase the cost of acquisition or in all like-
lihood make any type of comprehensive redevelopment of this area
impossible. Early acquisition of this site as well as the Dairy
Queen is also desirable to speed up the intersection improvements
planned for University Avenue and Mississippi Street by Anoka
County.
Both the HRA and the Council should bear in mind that we are not
proposing any type of assistance to Mr. Levy. Rather, this
proposal is only to acquire his site at a fair market value, an
undertaking we would certainly be obligated to do if we entered
into an agreement to develop the overall site.
JR:ls
M -90 -138
EXECUTIVE DIRECTOR: JOCK ROBERTSON •431 UNIVERSITY AVE. (d 12) 571 -3450
FRIDLEY, BIN 55432 EXT. 117
SOUTHWEST QUADRANT i 4_A
kr I ` eNER _
Mississippi and University I I �
v7 1 G A II: 1 ' r
`i i 1 1 I
N 1 1 `
o 1 , 1
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5 Y =- .t
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1 1
1
- •1
- - 1
1,
PARCEL STATISTICS
Land Improvements
Addrems /Pill /Legal Owner/Business 8q. Feet Market Value* Sq. Feet Dollars
6490 University Riffe's Auto 15,625 70,300 @ 4.50 1,588 44,100
A 14- 30 -24 -32 -0001
Lot 5 -9, Block 1
Sylvan Hills #5
6460 University 39,415 113,800 @ 2.88
14- 30 -24 -32 -0047 Jai M Suh
B Lot 1, Block 1
Sylvan Hills #5
6550 University Shopping Center 15,813 45,500 @ 2.88 14,000 217,900
14- 30 -24 -32 -0047 Jai M Suh
C Lot 1, Block 1
Sylvan Hills #5
D 6410 University Burger Ring 28,451 82,000 @ 2.88 2,470 150,500
14- 30 -24 -32 -0048 Jai M Suh
6460 University Rvikki Car Wash 9,690 27,900 @ 2.88 2,079 17,900
E 14- 30 -24 -32 -0049 Jai M Suh
Lot 1, Block 1
Sylvan Hills #5
14- 30 -24 -32 -0050 Public R.O.W 7,500 2,200 @ .29
City of Fridley
280 Mississippi Dairy Queen 11,625 48,800 @ 4.00 738 20,400
14- 30 -24 -32 -0051 Ernest Fitch
G Lot 3, Block 1
Sylvan Hills #3
214 Mississippi Liquor Store 83,963 209,900 @ 2.50 11,904 318,600
14- 30 -24 -32 -0056 City of Fridley
H Lot 1, Block 1
Sylvan Hills #6
246 Mississippi Rice Plaza 202,050 351,400 @ 1.74 10,875 210,600
' 14- 30 -24 -32 -0058 Fred Levy
Lot 1, Block 1,
Sylvan Hills #7
TOTAL 414,132 951,800 Q 2.72 43,654 980,000
u
.K%
IOUSNG and REDEVELOPMENT AUTHORITY
5
COMMISSION MEMBERS: LAWRENCE COMMERs, CHAPMAN
MANE PRAM ANGINA SCHNASEL WALTER RASMUSSEN JOHN MEYM
CITY OF FRIDLEY
DATE: March 1, 1990
TO: Housing and Redevelopment Authority
FROM: Jock Robertson, Executive Director of KRA
SUBJECT: Clark Engineering et al vs. Fridley HRA
The above action involves a mechanic's lien foreclosure commenced
by Clark Engineering on the property owned by the Fridley HRA and
Rice Plaza Partnership. Dave Newman took some limited discovery
and then brought a motion for summary judgment that was granted by
the court on November 21, 1989.
The current status of this matter is that all of the plaintiff's
claims are dismissed. However, our claim for slander of title to
property and for attorneys' fees pursuant to bad faith litigation
is still intact. The court has set this matter on for trial on
June 18, 1990.
We are now looking for direction from the HRA as to whether or not
it is their desire to continue to pursue these claims that we have
against Clark Engineering. There is no doubt in Dave's mind that
Clark Engineering acted frivolously in commencing this action and
that by right we should prevail at time of trial. However, he
cautions that the courts are sometimes reluctant to award
attorneys' fees in this type of matter.
If we decide to pursue our claim, Dave would like to take one more
deposition before trial. He assumes that our case could be
presented within one day subject to any delays that we might
encounter in waiting for a judge to be available. Accordingly, it
would be his best estimate that if the HRA wishes to pursue their
claim, it would probably involve another $2,000 -2,500 in legal fees
for additional discovery, trial preparation, and trial time.
JR:ls
M -90 -110
EXECUTIVE DIRECTOR: JOCK ROBERTSON 9431 UNIVERSITY AVE. (d 12) 571 -3460
FRIDLEY9 MN 55432 EXT. 117
1
IOUSNG and REDEVELOPMENT AUTHORRY
6
COMMISSION MEMBERS: LAWRENCE COMMERS, CMARMAN
MANE MANE VROMA SCHNASEL WALTER RASMUSSEN JOHN MEY@t .
CITY OF FRIDLEY
DATE: March 1, 1990
TO: Housing and Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: Lake Pointe Maintenance Project No. 197
Bids were received by the Public Works Department for Lake Pointe
Maintenance Project No. 197 on Wednesday, February 28, 1990, at
11:00 a.m. The low bidder was Talberg Lawn and Landscape with a
bid of $32,850.00.
Attached is a summary sheet showing the plan holders and bid
amounts. We recommend that the HRA approve the contract award to
Talberg Lawn & Landscape.
JR:ls
M -90 -139
EXECUTIVE DIRECTOR: JOCK ROBERTSON •431 UNIVERSITY AVE. (*12) 571 -3450
FRIDLEY, IAN 55432 EXT. 117
BID PROPOSALS FOR
LAKE POINTE DEVELOPMENT
MAINTENANCE PROJECT NO. 197
WEDNESDAY, FEBRUARY 28, 1990 11:00 A.M.
6 -A
BID
TOTAL
PLANHOLDER
BOND
BID
COMMENTS
Talberg Lawn & Landscape
100 Wilshire Drive
5%
$ 32,850.00
Minnetonka, MN 55343
Greenmasters, Inc.
92 43rd Avenue N.E.
Fridley, MN 55421
5%
$ 34,150.00
Walbon Lawn Maintenance
3225 Skycroft Drive
5%
$ 34,500.00
St. Anthony, MN 55418
J.T. Noonan Inc.
3601 48th Avenue N.
5%
$ 38,600.00
Brooklyn Ctr., MN 55429
Austin P. Keller Co.
481 Front Street
NO BID
St. Paul, MN 55117
Stay Green Lawn Maint.
P.O. Box 12513,
NO BID
New Brighton, MN 55112
6 -A
CLAIMS
(at meeting)
7
OUSNG and REDEVELOPMENT AUTHOWY
8
COMMISSION MEMBERS: LAw ENCE Commas, cHAwMAN
WANE PRAME V ROMA W40ASEL WALTER RASMUSSEN JOHN MEYER
FRIDLEY
DATE: March 1, 1990
TO: Housing and Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: Status of 57th Place Soil Investigations
Last month Ashland Oil released to us a full copy of the report
from Delta Environmental on the extent of ground water and soil
pollution on the site. The Pollution Control Agency (PCA) is
currently reviewing the report. Latest estimates for the final
recommendations and agreement with Ashland Oil are for later this
month.
Rob Goltz of the PCA indicated he believes the recommended
mitigating measure will be the pumping of ground water for approxi-
mately two years. Public Works estimates that the cost of this
mitigation may be closer to $100,000 than the $200,000 earlier
foreseen.
In the meantime, Jack Lemley of Ashland Oil has indicated that
Ashland will sign a letter of agreement with the PCA agreeing to
clean up the site. It would appear that when the agreement is
reached between the PCA and Ashland Oil on the clean -up and a
better idea is gotten of the actual expense and the intended legal
exposure, the HRA can bring this item off the table. Winfield
Development and Crosstown Bank are still "interested" in proceeding
with their original proposal.
JR:ls
M -90 -147
EXECUTIVE DIRECTOR: JOCK ROBERTSON e4E 1 UNIVERSITY AVE. MI 2) 571 -3450
fRIDLEY, NN 55432 EXT. 117
r, 9
January 30, 1990
Hr. William Burns Hr. Jock Robertson
City Manager Community Development Director
City of Fridley
6431 University Avenue NE
Fridley, Minnesota 55432
RE: Lake Pointe Land Lease
Gentlemen:
Being a resident of New Brighton, I frequently drive by the
former drive -in theatre site known as Lake Pointe. Also being an
average golfer needing practice, I visualized a golf driving
range on that particular site.
Knowing that the site is destined for commercial development
sometime in facilities would be ideal. e se with
temporary fa Here is my proposal
I would lease the site for one year (April 1 to September 6) with
three additional one year options. I would install 'a movable,
temporary clubhouse with appropriate signage and facilities
typical of a golf driving range. I would replace damaged sod
where required. I would also carry necessary insurance,
protecting myself and indemnifying /insuring the city.
Compensation for the lease would be i0% of the net continue to
approximately $15,000.00. The city,
be responsible for the maintenance and utilities.
A variety of concerns may need to be addressed, but for now, I am
seeking concept artial approval.
offs t against gre 1 estate revenue appear
it is a p taxes and maintenance
on a site that has not generated any income.
Attached is a sketch of the site, depicting location of the tees
and clubhouse, direction, and distances.
Your time and consideration are gratefully appreciated.
Sincerely yours,
Gr.G.%Ci -v
David E. Ficek
Scottwood Corporation
1849 Stinson Boulevard
New Brighton, Minnesota 55112
r.
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?OM`\
OUSNG and REDEVELOPMENT AUTHORITY
10
COMMISSION MEMBERS: LAWRENCE CONUMS. CIIAMMAN
MANE /RAME hIQMA SC1NAREL WALTER RASMUSSEN JOHN MEM
CITY OF FRIDLEY
DATE: March 1, 1990
TO: Housing and Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: Replacement of Street Lighting Poles and
Fixtures at Moore Lake Commons
Attached is a bill from Egan -McKay Electrical Contractors for
$4,470,000.
In January of 1989, one of our ornamental street lighting poles on
East Moore Lake Drive was destroyed by a hit -run driver. At the
direction of the HRA, a replacement pole and fixtures were ordered
by Public Works. Since it takes several months to obtain special
orders like this, it was agreed by the Public Works and Community
Development Departments to order two (2) replacement poles with
fixtures in order to have a spare one on hand at the garage. The
replacement pole was installed in April 1989. The second pole was
damaged in transit and sent back. Recently, its replacement was
shipped and delivered to our shop. Therefore, Egan- McKay's bill
is now due in full.
The developers along East Moore Lake Drive have a Development
Agreement with the Fridley HRA to pay for maintenance on their
portions of the lighting project. The pole replaced on East Moore
Lake Drive was on the Shopping Center Group's portion of the
project. Therefore, staff intends to charge or assess George
Applebaum's company $2,332.43. We intend to pay the balance of
$2,148.27 out of HRA general funds until the spare pole and
fixtures need to be utilized and remit $4,470.70 to Egan- McKay.
JR:ls
M -90 -142
EXECUTIVE DIRECTOR: JOCK ROBERTSON •431 UNIVERSITY AYE. (412) 671 -3460
FRIDLEY, NN 66432 EXT. 117
A-
10 -A
law
STATEMENT -
DATF
ELAN MCKA Y ELECTRICAL CONTRACTORS, INC. 1 X89
7100 MEDICINE LAKE ROAD •MINNEAPOLIS. MINNESOTA 554 ='
ELEPHDNE 544.4131 • AREA CODE 612
2818
V
CITY OF FRIDLEY
6431 UNIVERSITY AVE N.E.
FRIDLEY MN 55432
INVOICE NUMBER7 INVOICE DATE
50441 11/22/89
CURRENT
31 .60 DAYS
4,470.70
PAID TO DATE DATE O
.00 ` .,1
I ,
61 -90 DAYS
13ALA .CE DUE
1 4,470.'•0
OVER 90 DAYS
4,470.
«VOIcE Poo. 50441 10 -B
EGAN I FKAYwcrwaf com4cFORS,avc.
�^ 7100..�CWE LAKE woAO . &OPONE C"S. raw oTA se 7 ;h'
TEJ.us040M 04"131 . A11EA Coca •12 O.l
DATE NOV 22, 1989
CONTRACT NO.
CITY OF FRIDLEY
6431 UNIVERSITY AVE. 0004 JOB TICKET NOSO627 cr 0405_
• FRIDLEY► MN. 55432 YOUR ORDER NO. 89121
• TERMS: NET 30 DAYS RALPH VOLKMANN
CN 28185
woa ( DONE AT: RICE CREEK ROAD
DATE COMPLETED: PERIOD ENDING 11 -17 -89 PARTIAL PILLING
FURNISH TWO (2) LIGHT STANDARDS.
OVER TO THE CITY.
INSTALL ONE (1) AND TURN ONE (1)
Material --------------------- - - - - -$ 3,339.00
Labor -------------------------------------- 195.15
Overhead -- - - - - -- 815.00%---- - - ---� 530.12
Profit --------------- - - - - -- 810 .00 %------- _.. : -__ - - ._406.43
Total Amount Due - - - - -f 4,470.70
az
510
!Q
C
9
Extract of Minutes of Meeting
of the Board of Commissioners
of the Fridley Housing and
Redevelopment Authority
Pursuant to due call and notice thereof a regular or special
meeting of the Board of Commissioners of the Housing and
Redevelopment Authority in and for the City of Fridley, Minnesota,
was held at the Fridley City Hall on the 8th day of March, 1990,
commencing at P.M., C.T.
The following Commissioners were present:
and the following were absent:
The following Resolution was presented by Commissioner
, who moved its adoption:
RESOLUTION NO.
RESOLUTION APPROVING AND AUTHORIZING EXECUTION
OF TAX INCREMENT PLEDGE AGREEMENT
RESPECTING $9,485,000 GENERAL OBLIGATION
TAX INCREMENT REFUNDING BONDS OF 1990
WHEREAS, at the request of the Housing and Redevelopment
Authority in and for the City of Fridley, Minnesota (the "HRA"),
it is anticipated that the City of Fridley, Minnesota (the "City "),
will award the sale of its General Obligation Tax Increment
Refunding Bonds of 1990, dated as of March 1, 1990 (the 111990
Bonds "), in the approximate principal amount of $9,485,000,
pursuant to Minnesota Statutes, Chapter 475, to refinance certain
expenditures for certain public redevelopment costs undertaken by
the HRA within the HRA's Redevelopment Project No. 1.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the Board of
Commissioners of the HRA as follows:
713
''-
1
The motion for the adoption of the foregoing Resolution was
duly seconded by Commissioner
and upon vote
being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said Resolution was declared duly passed and adopted.
713
� TAX INCREMENT PLEDGE AGREEMENT
kiii
This Tax Increment Pledge Agreement (the "Agreement ") is dated
as of March 1, 1990; is by and between the City of Fridley,
Minnesota (the "City "), and the Housing and Redevelopment Authority
in and for the City of Fridley, Minnesota (the "HRA") ; and provides
as follows:
WHEREAS, on December 16, 1985, the City Council adopted a
resolution awarding the sale of the City's $11,550,000 Variable
Rate Demand General Obligation Tax Increment Bonds, Series 1985,
dated December 30, 1985 (the "Series 1985 Bonds "),. to provide
financing for certain public improvements (the "Improvements ") made
or to be made with respect to the HRA's Redevelopment Project
No. 1; and
WHEREAS, on August 14, 1986, the City Council adopted a
resolution authorizing the issuance of the City's $10,045,000
General obligation Tax Increment Refunding Bonds, Series 1986,
dated August 1, 1986 (the "Series 1986 Bonds ") , for the purpose of
crossover refunding the Series 1985 Bonds; and
WHEREAS, at the request of the HRA, the City Council has
adopted or is expected to adopt a resolution (the "Bond
Resolution ") awarding the sale of the City's $9,485,000 General
Obligation Tax Increment Bonds of 1990, dated March 1, 1990 ( 111990
Bonds "), to advance refund the Series 1986 Bonds; and
WHEREAS, in connection with the issuance of the Series 1985
Bonds, the HRA and the City entered into a certain Tax Increment
Pledge Agreement, dated as of December 1, 1985 (the 111985 Pledge
Agreement ") ; in connection with the issuance of the Series 1986
Bonds the City and the HRA entered into a certain Amended Tax
Increment Pledge Agreement, dated as of August 1, 1986 (the
"Amended Pledge Agreement ") ; and it is necessary to enter into this
Tax Increment Pledge Agreement to provide for the payment of the
debt service on the 1990 Bonds; and
WHEREAS, on February 1, 1990, the Series 1985 Bonds were
crossover refunded and paid in full; and
WHEREAS, to provide funds sufficient for the timely payment
of the debt service on the 1990 Bonds, it is necessary for the HRA
and the City to enter into this Agreement;
NOW, THEREFORE, in consideration of the covenants and
agreements hereof between the City and the HRA, and pursuant to
Minnesota Statutes, Section 469.178, Subdivision 2, the City and
the HRA hereby agree as follows:
713
1. In order to pay the principal of and interest on the 1990
Bonds, when due, the HRA hereby pledges to the City, for deposit
in the Debt Service Account established by the Bond Resolution for
the payment of the 1990 Bonds, and the HRA shall pay to the City,
Available Tax Increments (hereinafter defined) in amounts
sufficient to pay such principal and interest, when due, and, to
the extent that the Available Tax Increments are ever insufficient
for such purposes, and the City, pursuant to the Bond Resolution,
advances City funds to provide prompt and full payment of the 1990
Bonds, the HRA agrees to reimburse the City for such advances from
such tax increments, when collected by the HRA. As used in this
Agreement, "Available Tax Increments" means tax increments derived
by the HRA from Tax Increment Financing District Nos. 1, 2, 3 and
6 (to the extent the same may be applied toward payment of the 1990
Bonds pursuant to applicable law) within the HRA's Redevelopment
Project No. 1, subject to all undischarged pledges or other
commitments heretofore made for such tax increments. In payment
of its obligations under this Agreement, the HRA expressly reserves
the right to pledge or otherwise dedicate such tax increments to
purposes other than the payment of the obligations described above
upon a finding by the HRA that the estimated Available Tax
Increments then remaining will be sufficient from year to year for
such purposes.
2. An executed copy of this Agreement shall be filed with the
County Auditor of Anoka County, as required by Minnesota Statutes,
SEction 469.178, Subdivision 2.
3. This Agreement shall become effective upon the actual
issuance and delivery of the 1990 Bonds. Upon the issuance of the
1990 Bonds and the advance refunding thereunder of the Series 1986
Bonds, the 1985 Pledge Agreement, as amended by the Amended Pledge
Agreement, shall be of no further force or effect, except that the
HRA expressly retains any and all rights it may have, if any,
thereunder respecting the application of tax increments from Tax
Increment Financing District No. 6 to payment of the "District 6
Bonds" (as therein defined) or otherwise.
IN WITNESS WHEREOF, the City and the HRA have caused this
Agreement to be duly approved and executed as of the day and year
first above written.
HOUSING AND REDEVELOPMENT CITY OF FRIDLEY, MINNESOTA
AUTHORITY IN AND FOR THE
CITY OF FRIDLEY, MINNESOTA
By
Its Chairman
By
Its Executive Director
713
By
Its Mayor
By
Its City Manager
( SEAL)
e
Certificate
I, the undersigned, being the duly qualified and acting
Executive Director of the Fridley HRA, do hereby certify that I
have carefully compared the attached and foregoing extract of
minutes of a special or regular meeting of the Board of
Commissioners thereof, duly called and regularly held on March 8,
1990, with the original thereof on file in my office and I further
certify the same is a full, true, and correct copy thereof, insofar
as the same relates to the approval of a certain Tax Increment
Pledge Agreement respecting the City's $9,485,000 General
Obligation Tax Increment Refunding Bonds of 1990.
WITNESS my hand as such Executive Director of the HRA this
day of March, 1990.
713
Executive Director
Fridley HRA
a
STATE OF MINNESOTA )
SS.
COUNTY OF ANOKA )
County Auditor's Certificate
of Filing Tax Increment
Pledge Agreement
I, the undersigned County Auditor of Anoka County, Minnesota,
hereby certify that an executed copy of a certain Tax Increment
Pledge Agreement, dated as of March 1, 1990, between the City of
Fridley, Minnesota, and the Housing and Redevelopment Authority in
and for the City of Fridley, Minnesota, and relating to the City's
$9,485,000 General Obligation Tax Increment Refunding Bonds of
1990, dated as of March 1, 1990, has been filed in my office.
Witness my hand and the official seal of my office this
day of March, 1990.
(SEAL)
713
County Auditor
Anoka County, Minnesota
By
Deputy
-� 10,000 Auto Parts
Heaves many losers
� fmm
B�• Dan R'ascoe Jr. �' „ Page 1D
Staff Writer J 1 evwi,rriight directio "resent "a nudge in the To raise money, 18 semitrailer truck
loads of auto parts from the Calif
As any driver knows, you can't run
on empty.
So when Minnesota's winter turned
mild and the flow of customers di-
minished and popular items were
sold out, the already troubled 10,000
Auto Parts stores ran out of gas.
Their owner. 10.000 Holdings Inc.,
Brooklyn Park, closed all 17 of its
Minnesota stores last weekend, leav-
ing more than 100 employees unpaid
for two weeks' work. The company
filed for protection from creditors
last November under Chapter I I of
bankruptcy laws and is trying to find
a bu%er for its inventory between
now and March 15.
If it can't. control of the company's
assets may shift to its only secured
creditor. National City at
Bank. Minne-
apolis.
1 000 Holdings. said Wednesdav
that there are hundreds of unsecured
creditors, mainly suppliers, and that
total liabilities exceed $12 million.
Earlier estimates of $8.2 million in
assets probably are inaccurate now
because the stores no longer are going
concerns, he said.
About 50 laid -off employees met yes-
terday and decided to picket Nation-
al City Bank Friday to protest their
failure to be paid. Paul Pistner, re-
gional merchandising manager, said
that even if the bank lacks authority
to make such payments now, the
Bankruptcy continued on page 4D
Mike Healy, manager of the bake S
store in Minneapolis, said that when
he went to work Saturday morning
he found that the lock had been
changed. He said most employees
had received letters from Lowell
Fisher Jr., chairman and chief execu-
tive, thanking them for their work
but saying they would not be paid.
In addition to employees, some cus-
tomers are potential losers, including
Rhonda Rowe of Apple Valley.
She said her son, Scott, bought an
alternator at a 10,000 Auto Parts
store and returned it in February for
a $50 credit slip. But when she went
to the store to redeem it she found
the doors locked.
"When (Scott) got the slip he asked
how long it was good for, and he was
told, indefinitely, "' Rowe said. She
was disappointed because "Every-
thing we've put in our car the past
three or four years has come from
10,000 Auto Parts."
She called a number posted on the
store's door, but no one has answered
the past two days, she said. Ladoen
said it's unclear whether 10,000
Holdings or National City Bank
should be answering it.
When 10,000 Holdings filed for
Chapter 11 in November, Fisher
said that although he had closed 12
stores in California, the Twin Cities
"is a 'very predictable market (and)
our market share continues to grow."
He predicted that the company
would emerge from Chapter 1I this
summer.
"a stores were brought to Minneso-
t ta, Ladoen said.
"At that point the company was
quite optimistic it would be able to
sell the California inventory through
stores here and raise cash to pay off
secured creditors;' he said. But the
mild winter and lower - than - expected
customer demand in January and
February were "so significant that
the company could not generate suf-
ficient cash to keep the stores open."
!nsufficient igh-dem nd precluded items, and those
Shortages further discouraged cus-
tomers, he said. Although competi-
tors also faced reduced demand,
10,000 Holdings already was in
Chapter 11, he noted: "You're forced
to perform and don't have much
room for error."
National City Bank has been given
control of the stores' inventory to
Protect its lien on the company's as-
sets, at least until the March 15 hear-
ing in U.S. Bankruptcy Court.
Bankruptcy Judge Dennis O'Brien
said a hearing Monday revealed that
10,000 Holdings owes National City
$2.25 million, of which $1 million is
guaranteed by Norwest Growth
Fund. He said 109000 Holdings has a
chance between now and the hearing
to sell assets to , more cash than
liquidation could bring.
"Now everything is in a holding pat-
tern," he said.
E nq�n i•c:�ng
N S�•w�
Q
O 3
MEMORANDUM
TO: Jock Robertson, Executive Director - HRA PW90 -98
FROM: Bob Nordahl, Operations Analyst
DATE: March 7, 1990
SUBJECT: Electrical Bids for HRA Parking Ramp
Security Surveillance System
During the HRA meeting of December 14, 1989, the HRA authorized the
City Staff to award a contract to Security World, Inc. for the Ramp
Security Surveillance System.
In order to install the camera and sound equipment correctly,
additional electrical and sound wire conduit work must be
completed. I have requested two (2) quotations to complete this
work. (Quotations attached).
Royal Electric, Inc. was low for a total cost of $649.00.
Recommend that the HRA approve this purchase and authorize the City
Staff to issue a purchase order to Royal Electric, Inc. to complete
the work.
If you need additional information, please contact me.
BN /ts
Attachments
IF
go
rvrvija Page No. 1 of Pages
Y +e heret. submit specit:".:' c .. ,ir,: estrretr.
INSTALLATION OF CONDUIT FOR PARKING RAMP SECURITY SYSTEM
Steel conduit would be extended from existing junction boxes to the six speaker locations
and to the camera location.
Another conduit would be extended to the area behind the police window.
One 120 volt receptacle installed to supply power to the camera.
n Amount Including Sales Tax — — — $649.00
11C 11ro}tose hereby to furnish material and labor — complete in accordance with above specifications, for the sum of:
dollars ($ )
Payment to be made as follows:
An material is guaranteed to be as specified. All work to be completed in a workmanlike t
manner according to standard practices. Any alteration or deviation from above specdica• Authorized
tgons involving extra costs will be executed only upon written orders, and will become an Signatu ►e
extra charge over and above the estimate All agreements contingent upon strikes, accidents
or delays beyond our control. Owner to carry fire, tornado and other necessary insurance. Note: This proposal may be
Our workers are fully covered by Workmen's Compensation Insurance. withdrawn by us if not accepted within days.
Araptanre of f roposal - The above prices. specifications
and conditions are satisfactory and are hereby accepted. You are authorized
to do the work as specified. Payment will be made as outlined above.
Date of Acceptance:
Signature - --
Signature
ROYAL ELECTRIC CO.. INC.
7401 Central Ave. NE.
MINNEAPOLIS, MN 55432
Phone 784.4646
PROPOSAL SUBMITTED TO
PHONE
DATE
City of Fridley
March 2 1990
STREET
JOB NAME
6431 University Ave. N.E.
_
CITY. STATE AND ZIP CODE
JOB LOCATION
Fridley, MN 55432
i ARCH1ILCT
All l`r PLANS
JOB Fr;i P:I
I
Y +e heret. submit specit:".:' c .. ,ir,: estrretr.
INSTALLATION OF CONDUIT FOR PARKING RAMP SECURITY SYSTEM
Steel conduit would be extended from existing junction boxes to the six speaker locations
and to the camera location.
Another conduit would be extended to the area behind the police window.
One 120 volt receptacle installed to supply power to the camera.
n Amount Including Sales Tax — — — $649.00
11C 11ro}tose hereby to furnish material and labor — complete in accordance with above specifications, for the sum of:
dollars ($ )
Payment to be made as follows:
An material is guaranteed to be as specified. All work to be completed in a workmanlike t
manner according to standard practices. Any alteration or deviation from above specdica• Authorized
tgons involving extra costs will be executed only upon written orders, and will become an Signatu ►e
extra charge over and above the estimate All agreements contingent upon strikes, accidents
or delays beyond our control. Owner to carry fire, tornado and other necessary insurance. Note: This proposal may be
Our workers are fully covered by Workmen's Compensation Insurance. withdrawn by us if not accepted within days.
Araptanre of f roposal - The above prices. specifications
and conditions are satisfactory and are hereby accepted. You are authorized
to do the work as specified. Payment will be made as outlined above.
Date of Acceptance:
Signature - --
Signature
rPnnitt :I q � .%r usi Gtla• = i, 0117: 1c mOn PNM Tal'NJ 1.600 rA 6710
Page No. I of I Pages
�ru���ttl
ILLME
ELECTRIC Co.jnc.
9702 85th Avenue rth
wple Grove, &N 55369
Phone (612) 425.2525
Attention: Bob Nordahl
PROPOSAL SUBMITTED TO
PHONE
DATE
City of Fridley
March 2, 1990
STREET
JOB NAME
6431 University Avenue N.E.
CITY. STATE AND ZIP CODE
JOB LOCATION
Fridley, NN 55432
ARCHITECT
DATE OF PLANS
JOB PHONE
We hereby submit specifi= atlons and estimates for
We propose to Furnish and Install Conduit system for Parking Ramp Speaker and Camera,
Junction Box above Police desk, and power to one camera.
For a Limp Sum of: $725.00
Bit 11rapaliP hereby to furnish material and labor — complete in accordance with above specifications, for the sum of:
Seven Hundred Twenty Five & 0 /100 ----------------------- - - - - -- 725.00
dollars ($ )
Payment to be made as follows:
All material is guaranteed to be as specified. All work to be completed in a workmanlike
Pica. Authorized
manner according to standard practices. Any alteration or deviation from above s peci
Signature
tl s involving extra costs will be executed only upon written orders, and will become an
charge over and above the estimate. All agreements contingent upon strikes• accidents
ays beyond our control. Owner to carry hre, tornado and other necessary insurance. p( This proposal may be
ti., workers are fully covered by workmen's Compensation Insurance. withdrawn by us if not accepted within days.
Arrr;ftnrr of 11rapasal — The above prices, specifications
and conditions are satisfactory and are hereby accepted. You are authorized Signature
to do the work as specified. Payment will be made as outlined above.
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Casserly Molzahn & Associates, Inc.
215 South 11th Street, Suite 200 • Minneapolis • Minnesota 55403
Office (612) 342 -2277 • Fax (612) 332 -4765
MEMORANDUM
TO: Jock Robertson
Scott Ericson
FROM: Mary Molzahn
RE: Urban Commercial Developers Project
66th Street & University Avenue
DATE: March 7, 1990
Attached please find a revised cash flow analysis for the above
project. The revisions, as we discussed yesterday, include:
1. Sale date for the bonds as of February 1, 1990. This is
based on the proposed construction beginning July, 1990 and
concluding January, 1991. The bonds would be sold and funds
provided to the Developer upon the issuance of an occupancy
permit.
2. 2% inflation has been applied to the estimated taxes
beginning in the year payable 1994.
3. Principal payments on the bonds are made semiannually.
In addition to the revisions you requested, we added a "Coverage"
column. This represents a ratio of revenues to debt service;
105% coverage is required by Statute. Because bonds are issued
in $5,000 denominations and because we are working with
relatively small amounts, it is difficult to maintain coverage
which is exactly or close to 105 %. This is why several of the
coverage percentages appear high.
For example, in the period ending 8/92, $10,000 is paid in
principal and $16,625 in interest for a total debt service
payment of $26,625. The ratio of debt service to $31,825 in
revenues is 120 %. If the principal amount is increased to
$15,000 coverage would decrease to less than 105 %. The exception
to this is the final payment in the period ending 8/2001.
Coverage in this period is 3691. This is due to the small
principal payment of $10,000.
Although this bond structure is more refined than previously, it
will require additional refinements prior to actual bond
issuance. One issue to consider is the principal payment
schedule. Traditional bond schedules reflect an increasing
principal amount during the term of the bond. The attached
schedule increases steadily until the final payment. The
principal payments could be evened out or left as is. However,
this is an issue we can discuss at a later date.
As shown, a bond in the principal amount of $350,000 is required
to generate $300,000 in project expenses. Based on a taxable
rate of 9.5% the term of the bond is 11 years. However, if the
cumulative fund balance is actually available, the bonds could be
prepaid after 9.5 years.
The "Late" column has also been revised to reflect more
accurately the bond payment dates. The dates listed represent
the prior six months. For example, 8/90 reflects the six month
period ending 8/1/90 (February through July).
If there are additipnal comments or questions, please call.
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h t least 30 special events in 1990,
it ing parts of the U.S. Olympic
Festival, plus dozens of local programs,
league play, and development courses
for coaches and referees. The center is
also expected to attract major national
and international sporting events, in-
cluding the preliminary games for the
1994 World Cup tournament. An all -
wood velodrome, a replica of the cy-
cling track that will be used at the 1992
Barcelona Olympics, is still under con-
struction at the sports center; it is likely
to attract world -class cyclists preparing
for the Olympics. Visiting athletes will
be able to stay in the facility's 200 -bed
dormitory, complete with kitchen and
dining areas.
The complex includes a 12,000 -seat
open -air soccer stadium and a nine -lane
running track, both built to interna-
tional Olympic standards. There is an
identical soccer facility, but with a six -
lane track, in the large multi - purpose
indoor sports hall that houses the offices
of the Minnesota Amateur Sports Com-
mission, the state agency responsible for
building and operating the sports cen-
ter. There are a total of 17 soccer fields
F-- �e grounds.
.e city of Blaine — already a mecca
for junior high school and high school
soccer, with 15 soccer fields of its own
— was the logical venue for the Na-
tional Sports Center, says Don Poss,
who was project manager for the facility
and is now Blaine's city manager. No
other sites were considered, he says. The
state issued $15 million in bonds in 1987
to pay for the land and build the sports
center, but no state money will go to-
ward the facility's operations, which
must be entirely self - supporting.
Poss, a civil engineer by profession,
has a distinguished record of managing
the development of sports facilities. Af-
ter serving for 11 years as Brooklyn
Center's city manager, he went on to
head the Metropolitan Sports Facilities
Commission, where he was the project
manager for the $69 million Hubert H.
Humphrey Metrodome. After that, he
served as vice president of the Miami
Dolphins football team and was re-
sponsible for developing the plan to
build the $110 million Joe Robbie Sta-
dium in Miami.
Poss is convinced that the National
,P'" �s Center will have a significant
tomtc impact on Blaine, and on the
north suburban area as a whole. "Last
July, when we held the USA Cup [a
10 -day junior high school soccer com-
petition involving 400 teams from
across the country ], hotels in Brooklyn
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Page 22
h "ige 30 Atinntxofa Real F_vtate Journal Febnmary 19. 1990
Market
front page 1
lowest point rot m rvc years:
P f approximately
1)10.1)(U square feet, a 27 portent decline fmm
I he peak year of 1986.
Downtown St. Paul was especially bleak.
vacamv rates increased to 16 percent in 1959
from 13 percent the previous )ear, and net ah-
.orption for 1989 was a negative 80.0110
>quare feet.
'ncc only new building under construction
in downtown St. Paul — likely forquite some
time — is the 450,000 square foot St. Paul
Cos. headquarters. The single -user project
I kely will lead to increased vacancy rates a%
IoO�ul Cos. consolidates employres from
downtown buildings.
-tors anyone stand to gain from the trou-
bled office market?
Tanya Bell. an office specialist with Cald-
well, says landlords of existing Class A and
Clus B buildings will have a competitive ad-
eantage in downtown Minneapolis.
"Tenants will have a choice between ex-
isting, first - generation, talcs,% A buildings
the new Class A building,; with a difference
in net rents of from $2 to $4 per square fm:
Bell says. "Developers of the newer Class A
building% will have a tougher time claiming
that they have an appreciably better building:'
Cost -crone iou%tenants might show renew-
ed interest in Claus B buildings. which carry
hover rents. taxes and operating expense. Bela
says.
"In 1990, for instance, taxes on premier
properusm such as Norw•c%1 Center, will
.untunt to $7.75 per square Gxit,' see says. "It
might just be enough for marry to consider
options in Class B space:'
Maria A. Maughn, anther Coldwell of-
fice specialist, says landlords that cater to
their tenant% will be winners. Temrnts will
look to pmpenics that offer easy access, af-
fordablesacs and annnitic%that include child
care. fuel services and other conveniences.
Retaining tenant% is the biggest imrstment
landlords can make in their properties.
Maughn %As. They must continually upgrade
pmpertics and add services, she sav%.
Chris Moarn. of Towles sales and leasing
division• says the future looks brighter for
downtown office space than for suburban.
"Although tenants are appalled by the in-
crease in taxes in downtown Minneapolis.
suburban property taxes have grown at even
a faster pace; Moam says. **No longer would
a move from downtown Minneapolis provide
tenant% with financial gain on their income
statements. It's gotten so bud that, in some
buildings in the suburbs. the taxes are higher
than the net cf` ctive rents:'
Traffic congestion also L % worsening in the
suburbs, he says, and the completion of In-
tcrsrue 394, new parking facilities and possi-
ble light -rail transit bode well for downtown•
he says.
Executives also are choosing to locate
downtown because of enenainment, Moarn
says. Professional sports and restaurant%•
once centered along the Bloomington strip.
have moved to downtown Minneapolis. he
Like Maughn, Moarn says more tenant%
will demand full -service buildings that offer
parking, restaurants, child care, convenience
stores and dry cleaning. Class 8 buildings
also will have to add tlnrse amenities if they
Mown Swim -PTC urove as a future=
spot felt ohavelopmnt, because of excellent
freeway access it) downtown and west.
rrasrrnable land priers and encouragement uragement by
the city. T DLD Development Col 97- percent
leased Wedgwood Commerce Centre in
Maple Grove attests to the existence of office
development opportunities. Mourn uys.
Mendota Heights and Eagan, which enjoy
new freeway improvements. cvenuarlly will
pick up but the other suburb n submarkets
likely will remain extremely competitive, he
says.
Perhaps the biggest potential impact on the
office market are plan% by The Landmark.
Group of Atlanta and Minneapolis develope
Norman Kerr to build a 65 -story. 1.8 millio
square foxu hcadytrartcrs tier IDS. IDS and Use
developers have yet to strike a deal.
"Such a men by IDS would have a disrup-
tive effect on the downtown office market:'
Moarn says. "Not only would another new
building be added to the market space, but ad-
ditional Class A and B space would become
available in the IDS Center and the Baker
Block.
"1 predict it will be three years before you
see any fully spec suburban office space;
Morin says. "Cknss B buildings will continue
to ppump improvements back into their
buildings to be more competitive. Cheap land
in the outlying suburbs will continue to spit
1, u i iE_. odcration. Caution. Coldwell
and Towle officials use those terms to
describe the industrial real estate market.
Here's a look at the industrial market using
Coldwell's figures.
The industrial market remained healthy in
1989, with an overall vacancy rate of about 9
percent. Vacancy rates for bulk warehouse
space were as Ito as 3 percent in some sub-
markets. In the office /showroom markm
vacancies till from as high as 26 percent in
1987 W less than 14 percent at the end of 1989.
Construction and transaction volume hat%
Men declining in recent years. Aleut 3
million square fect of new construction was
added to the Twin Cities market last year.
which is almost a 50 percent decline from the
1986 peak level.
The year 1986 also was tee high point for
transactions. with more than 12 million
square feet of transactions taking place. Simi
then• transactions have declined steadily
about 10 percent per year.
Tonal absorption fell to &5 million square
feet in 1989, down from 9.5 millitm square
facet in 1988 and nearly C million square feet
rTame% 1). Leary. an acsorate• vtee pre%tucnt
and industrial specialist with Coldwell. %ays
the industrial market faces three main
challenges.
First, tight lending practices will limit In-
struction activity, keeping speculative
development flat and leaving industrial
devclopnent to truster - planned parks or
projects with substantial prelrtsirng. Secuul.
a tight labor market will cause employers to
locate near public transportation, housing
and other public services, creating upward
pressure on prices and decreasing availability
of space in close -in areas. Third, the
revitalization of manufacturing sector
resulting from corporate overhauls and
streandining might not benefit Minnesota,
where many manufacturers report a com-
pctitive disadvantage resulting from high in-
come taxes, real estate taxes and workers
compensation rates.
Leary predicts that demand for industrial
space will come fmm companies engaged in
health, medical, hiotechnical and microcom-
puter activities. The build - to-suit market will
continue to be the best opportunity for
developers, he says.
Towles Dennis McClinton, an industrial
specialist, says developers and users of in-
dustrial space are analyzing real estate deci-
sion% as never before.
Speculative development in the industrial
sector has ceased, he says, and construction
does not start until market research and
prcleasing activity has taken place.
"We see developers working extremely
project% aren't coming on line as rapidly as
they did in the mid - to late- 1980s. McClinton
says. He also anticipates concessions to
tighten from their present level of 10 percent
to 20 percent because of the tightened supply.
Some of the best opportunities in the 1990s
will come not from new development.
McClinton says, but from the reworking of
troubled properties.
Major corporations will more actively
manage their real estate assets, he says,
representing an opportunity for developers.
brokers and consultants to do business with
corporate America.
Like Leary. McClinton sees the greatest
expansion and growth potential from com-
panies involved in medical and healthcare
related fields.
Small- to medium -sized firms will choose
to own rattier than lease space as their lease
rates rise and concession packages diminish.
McClinton says. As a result• many developers
who now work on speculative projects will
turn to the build - to-suit market.
McClinton agrees with Leary that high
taxes and scarce, close -in sites will poise prob-
lems for the industrial real estate industry.
The passible development of light -rail tran-
sit and a new international airport also will
create problems and opportunities for in-
*develt>Qnerti in the long run. he says.
lGtan
di iclopnent in the Twin Cit ic% pro -
ceeded at a brisk pace in 1989, and Coldwell
and Towle officials say the market can sup-
port snore.
According to Towle, the retail market add-
ed 14 new centers during 1989. The, addition
of 1.7 million square feet is the largest since
198&
The space increase affected all retail
categories, particularly regional centers.
where owners are renovating and expanding
to compete with new projects. Smaller
centers also are rcra ating anti adjusting their
tenant mix to compete.
Net absorption of retail space was more
than 1.5 million square Win the first quarter
of 1990. up from about 7161100 square lest in
continued on next page
February 19, 1990 Minnesota Real Estate Journal
cf, -`�ed from previous page
L Che overall retail vacancy rate increased
slightly, to 8.1 percent from 8 percent.
Michael J. Murphy, vice president of
Towles property management division, says
power centers are the newest player in the
Twin Cities and will continue their growth in
th 90
ower centers are 200,000 to 500,000
square foot strip centers, located near
regional malls, with three to five "category
killers" occupying 50 to 80 percent of the
space. Category killers are high - volume,
price- compeUUve retailers such as Highland
Superstores and Toys 'R' Us.
Five power centers consisting of 953,000
square feet will open by fall of 1990 (Rosedale
Marketplace, Roseville; Birch Run Station,
Maplewood; Centennial Lakes Plaza, Edina;
Ridgedale Festival, Minnetonka; and River-
dale Crossing, Coon Rapids). Another two
centers consisting of 690,000 square feet are
proposed, he says (Burnsville Marketplace in
Burnsville and Midway Marketplace in St.
Paul).
"The category killers can give the regional
centers a run for the limited consumer
dollars;' Murphy says. "The typical 3,000
square foot toy store in a regional mall will
find its customer base eroded by a 40,000
scare foot Toys 'R' Us located just across the
.;mographics will limit the number of
cuccessfuI rower centers. he says.
Avenue and the Gaviidae Common special-
ty shops opened in 1989, will play an increas-
ing role in the retail market, Murphy says,
especially at the upscale level. Under con-
struction is a Neiman Marcus department
store and more shops in the Dain Bosworth
Plaza complex.
And to be sure, the Mall of America in
Bloomington will be a retail force, adding 2.6
million square feet, increasing the
metropolitan area's gross leasable retail area
by more than 8 percent, and producing ara
estimated 2.4 percent of the state's retail sales.
"Whether you go for the amusement rides,
the people watching, the shopping or to
escape the Minnesota weather, you will go;'
Murphy says. "It's surprising they aren't
charging an admission fee."
At regional centers, retail sales — but not
occupancy — will be hurt for the first year of
the mega -stall, but will rebound as shoppers
seek convenience without the perceived park-
ing problems and time - demand of the Mall of
America. The mall itself, he says, is likely to
succeed based on co- developer Melvin
Simons track record and on the region's
gpwing role as a regional center.
ter Bloch, a retail specialist with Cold-
.., agrees that the mega -mall will succeed.
With millions of square feet being added to
the Twin Cities retail market. Bloch says,
fears of an overbuilt market are natural.
However, he says, market research indicates
that Twin C itians have an appetite for a larger
piece of the retail pie.
Among U.S. metropolitan areas, the Twin
Cities ranks behind only Washington, D.C.,
in the annual dollars per household spent,
Bloch says. Washington households spend
about $22,700 annually, compared with
$21000 for Twin Cities households.
Meanwhile, the average square foot of
retail space per person is the lowest at 14.5,
and would increase to a relatively lrnv 15.3
square feet including the Mall of America.
Retail sales per square foot are $385 in the
Twin Cities, $9 ahead of Washington.
"This sales per square foot number is most
encouraging and represents why there con -
tinues to be such a strong interest from
tenants, developers and investors in the retail .
segment of our marketplace; Bloch says.
r market. due to changing
demographic factors, is heading toward an era
of overcapacity.
According to Towles report, the apartment
market has experienced increasing vacancy
rates, new construction and rental rates.
From the fourth quarter of 1985 to the
fourth quarter of 1989, the overall vacancy
rate increased from 2.1 percent to 7.6 percent.
During the same period, the number of units
increased from 87,031 to 119,376.
Downtown Minneapolis and downtown St.
Paul have the highest vacancy rates — 26.2
percent and 15.3 percent, respectively —
because of overdevelopment.
Kathleen M. McKenna, president of
McKenna Management Associates Inc. and
the newly formed Towle McKenna Co., says
the aging baby boomer generation poses the
greatest challenge to the housing industry.
The most typical rental group, adults 25 to
34, will decrease from 426,000 in 1951 to
425,000 by the end of 1990, and then drop by
82M by the end of the decade, McKenna
says. Adults age 20 to 24 also will drop in
number by 24,000 during the decade, she
✓EWat that means in the Twin Cities is a
need for less multifamily housing; McKen-
na says. "If we assume the following — no
new construction, no multihousing demoli-
tion, static migration, that all statistical data
is correct, and that all adults live in pairs —
the Twin Cities will need 53,000 fewer ren-
tal units in the year 2000, or 35 percent less
than we have right now."
Increasing vacancy rates, she says, "are
merely the first tremors in an earthquake
caused by demographic factors that we can-
- -- - - - - -.,
will be profit opportunity in the reuse and
rehabilitation of old housing stock.
The disposition of foreclosed -upon proper-
ties by the federal Resolution Trust Corp. also
will present excellent opportunities for pur-
chases (although flooding the market), and a
decrease in state tax rates for apartments
adopted last year will produce increased
operating income. tN
Wetlands
from page 1
Marsh notes. "In the U.S. overall, more than
90 percent of wetlands has been lost, and the
country continues to lose more than it
restores,' he says.
All scientific information indicates that
wetlands are important for groundwater
recharging and flood control, Marsh says.
"We've already drained so much that the
(Department of Natural Resources) shows
that in some parts of the state, we've lost 95
to 98 percent of wetlands"
In addition, wetlands support wildlife
habitat and are somewhat beneficial in stop-
ping soil erosion, Marsh adds.
The no net loss bill basically says that if a
wetland is drained, another wetland of about
the same size and quality must be restored or
created in the same general area. "I'm not
anti - development or anti- agricultural;' Marsh
says, "but if you're going to drain certain
wetlands, you have to replace them some-
place else, and the best way is through
restoration."
Marsh believes that the bill has a good
chance to pass this session because there are
strong bipartisan efforts for the issue on the
state and national levels. "This issue is too
important to get into a crossfire of political
parties," he says. For the bill to pass, however,
the Legislature will have to figure out a way
to come up with extra money.
Ben Wopat, chief of the regulatory branch
of the St. Paul office of the U.S. Army Corps
of Engineers, says that the bill would provide
some benefits such as tax credits for preser-
vation of wetlands. However, one of his con-
cerns is that the bill still doesn't allow the state
to have jurisdiction over all wetlands. It ex
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