HRA 04/18/1990 - 6388HOUSING AND REDEVELOPMENT AUTHORITY
MEETING, WEDNESDAY, APRIL 181 1990
6:30 P.M.
WILLIAM BURNS, CITY MANAGER &
DIRECIOOR OF HRA
lll- �'
PLEASE NOTE CHANGE IN MEETING DAY AND TIMEld
City of Fridley
A G E N D A
HOUSING & REDEVELOPMENT AUTHORITY MEETING
WEDNESDAY, APRIL 181 1990, 6:30 P.M.
Location: City Council Chambers
Fridley Municipal Center
6431 University Avenue N.E.
CALL TO ORDER:
ROLL CALL:
APPROVAL OF MINUTES: March 8, 1990
ACTION ITEMS:
REVISED UCD REDEVELOPMENT PROPOSAL FOR
10,000 AUTO PARTS SITE . . . . . . . . . . . . . . . . . . .1 - 1G
CONTRACT WITH BARTON- ASCHMAN ASSOCIATES FOR
TRAFFIC STUDY TO BE PAID FOR BY UCD . . . . . . . . . . . .2
CLAIMS. . . . . . . . . . . . . . . . . . . . . . . . . . 3
INFORMATION ITEMS:
57TH PLACE STATUS . . . . . . . . . . . . . . . . . . . . .4 - 4A
TCF AND SKYWOOD MALL IMPROVEMENTS . . . . . . . . . . . . .5 - 5H
COMMENTS ON PROPOSED 1990 -1991
OBJECTIVES AND ACTIVITIES . . . . . . . . . . . . . . . . .6 - 6F
OTHER BUSINESS
ADJOURNMENT
a
CITY OF FRIDLEY
HOUSING 6 REDEVELOPMENT AUTHORITY MEETING, MARCH 8, 1990
CALL TO ORDER:
Vice - Chairperson Schnabel called the March 8, 1990, Housing and
Redevelopment Authority meeting to order at 7:20 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 and Director of HRA
Dave Newman, HRA Attorney
Rick Pribyl, Finance Director
Paul Hanson, Accountant
Jim Casserly, Casserly Molzahn
Barbara Dacy, Planning Coordinator
William Nee, Mayor
Tom Schuette, UCD, 4735 Hiawatha Ave. S., Mpls.
Frank Reese, 8200 Normandale Blvd., Bloomington
APPROVAL OF FEBRUARY 8 1990, HOUSING AND REDEVELOPMENT AUTHORITY
MINUTES•
MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve the
February 8, 1990, Housing and Redevelopment Authority minutes as
written.
UPON A VOICE VOTE, ALL VOTING AYE, VICE — CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY-
ACTION ITEMS•
1. RESOLUTION ON $9,845,000-TAX INCREMENT REFUNDING BONDS:
Mr. Robertson stated the bond bids were received on noon on
Wednesday, March 7, 1990, and the bids were awarded at a special
City Council meeting the evening of March 7, 1990.
Mr. Robertson stated the explanation and resolution the HRA
received in the packet has been modified, and the HRA has received
a final resolution with the final numbers.
HOUSING & REDEVELOPMENT AUTHORITY MTG., MAR. 8. 1990 PAGE 2
Mr. Robertson stated that when the HRA had a joint meeting with the
City Council on February 8, 1990, the HRA reviewed the options
presented by Mr. Jim Casserly and approved the financing procedure
and authorized this bond issue. At this meeting, staff is asking
the HRA to approve this resolution that will approve and authorize
the execution of a tax increment pledge agreement which goes with
this general obligation tax increment refunding bond.
Mr. Casserly stated that what the City has done is simply refund
the bonds sold in 1986. Approximately $9,060,000 are left on those
bonds, so this bond issue that is sold is to completely pay off the
1986 bonds. That is why this is called a refunding bond. There
is no new money in this issue. The HRA is being asked to pledge
the tax increment revenue they have available to them to pay off
this new 1990 refunding bond. The HRA did a similar pledge in 1985
and 1986, and now they are being asked to do the same kind of
pledge in 1990. The pledge agreement says that in Tax Increment
Districts 1, 2, 3, and 6, for as much as it can be pledged, the HRA
is pledging the revenues from those districts to pay the debt
service on this bond issue.
OTION by Mr. Prairie, seconded by Mr. Meyer, to approve Resolution
HRA No. 3 -1990, "Resolution Approving and Authorizing Execution of
Tax Increment Pledge Agreement Respecting $9,845,000 General
Obligation Tax Increment Refunding Bonds of 1990 ".
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
2. RESOLUTION DIRECTING STAFF AND HRA CHAIRPERSON TO APPROVE A
DEVELOPMENT AGREEMENT WITH NORTHCO IN SUBSTANTIALLY THE SAME
FORM AS PRESENTED:
Mr. Robertson stated that at the December HRA meeting, a
representative from Northco, Mr. Bruce Carlson, made a presentation
to the HRA on the proposed 18,000 sq. ft. project in the Northco
Phase III at 73rd /University Avenue. The HRA reviewed the building
plans and the need for extensive soil correction, and 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 of $70,000.
Mr. Robertson stated that at the February 26, 1990, meeting the
City Council held a public hearing and set up that district, and
that has now gone to the County for certification.
Mr. Robertson stated the HRA is being asked to approve a resolution
asking staff to proceed with finalizing the final development
agreement with Northco in substantially the same form as the HRA
approved it in December with the pay -as- you -go feature, where the
HRA does not give the grant until the project starts paying taxes.
,'� HOUSING a REDEVELOPMENT AUTHORITY MTG., MAR. S, 1990 PAGE 3
The development agreement is being currently reviewed by Northco,
and they see no problems in finalizing the agreement.
MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve Resolution
No. HRA 4 -1990, Resolution Directing the Fridley Housing and
Redevelopment Authority Staff and Chairperson to Approve a
Development Agreement in Substantially the Same Form as Presented.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY,
3. UCD DEVELOPMENT PROPOSAL FOR 10,000 AUTO PARTS SITE:
Mr. Robertson stated that at the last meeting, staff briefed the
HRA on this development proposal for a 28,000 sq. ft. retail
facility which would use the 10,000 Auto Parts site plus two
additional residential properties to the east. The HRA originally
reviewed it as a pay -as- you -go grant; however, when it became
necessary for the project to acquire the two additional properties,
UCD changed their request from a $250,000 pay -as- you -go grant to
a $350,000 grant upon completion. At that time, the HRA authorized
staff to proceed with some additional analysis of this, since this
no longer met the standard pay -as- you -go grant of 5 -8% of the total
project value.
Mr. Robertson stated the HRA received at the meeting a revised
analysis by Casserly Molzahn. Staff now feels confident that the
developer's cost of a grant for a land assembly and write -down will
be closer to $300,000 than $350,000. If the HRA is to approve the
proposal, it will require the issuance of a bond. Staff added a 2%
inflation rate to the estimated taxes. Principal payments are to
be made semi - annually. The result is that the HRA would need a
principal of approximately $350,000 to generate $300,000 in project
expenses. They are using a conservative estimate in that they are
assuming it is a taxable bond; therefore, the rate is 9.5% and the
term of the bond is 11 years. Using the most conservative method
of estimating the value of the project, they estimate about $1.7
million. The developers estimate the project value to be much
closer to $2.5 million. Using the conservative method, the ratio
of the grant to the $1.7 million is in the neighborhood of 17 %.
That is why this is a special case and why they did an additional
analysis.
Mr. Robertson stated that when the HRA was looking at the Tanurb
project in the southwest quadrant, the ratio of the grant to the
value was in the neighborhood of 20%.
Mr. Robertson stated that subsequent to the printing of the agenda,
staff has met with UCD and have resolved the site plan questions
that were raised at a neighborhood meeting UCD ha in ratios, Fe aand
The site plan now meets all the coverage, parking
HOUSING & REDEVELOPMENT AUTHORITY MTG.. MAR. 8, 1990 PAGE 4
setback requirements of a standard C -1 zone with one exception, and
this is the setback from the right -of -way of University. This is
a technicality, in effect, because of the wide planting strip
between the traveled way and the property line. There is more than
the standard setback normally found for a commercial street.
Mr. Robertson stated Barbara Dacy, Planning Coordinator, is at the
meeting to answer any questions the HRA members might have on the
site plan.
Mr. Robertson stated there may be questions about what the City is
getting for the proposed grant. He would like to point out that
the grant does not go to the developer. The grant is more in the
direction of reducing the price of the property so that it is
competitive with competing sites. Mr. Casserly can answer any
questions regarding the grant.
Mr. Prairie asked if Mississippi Street was going to be any wider
than it is at the present time.
Mr. Robertson stated that on the site plan, Mississippi Street
shows the dog -leg left turn stacking. It is possible for the
County to build that when they improve Mississippi Street. The
County has already acquired the right -of -way to proceed with the
intersection improvement project, and they have reviewed this site
plan and have essentially said it is feasible to do it this way.
Mr. Prairie stated this is really a tight area for traffic flow.
Mr. Robertson stated that is correct. This is a critical part of
the site plan. That is why the County essentially required the
developer to acquire more land to the east to provide enough left
turn stacking space.
Mr. Meyer stated he had a general concern about this whole
development, not only because of the development itself, but part
of this whole operation is to some day have a light rail transit
parking lot on 66th Avenue and to the north.
Mr. Meyer asked that if they approve this project, aren't they
somehow introducing a semi- blight into a very fine residential
area? In terms of when they ultimately put in the light rail
transit parking area, that intrudes itself one more block into an
excellent residential area. He did not see that as a very good
planning solution.
Mr. Meyer stated they haven't even had their discussion yet on a
policy for the southwest quadrant. In order to get that going,
they will probably need some of the same type of shops that are
being proposed for the 10,000 Auto Parts site. They will have the
Northco development at 73rd and University Avenue which will
�� HOUSING & REDEVELOPMENT AUTHORITY MTG. , MAR. 8 1990 PAGE 5
contain many of the same type of shops. Do they have any kind of
general plan for University Avenue and for the whole City in terms
of these types of developments? It concerned him that they do not
have an overall plan, other than to just develop property to get
more tax money. If any of these projects go defunct, they are
going to have many little one -story mom /pop shops empty all up and
down University; therefore creating blight. Shouldn't that be part
of the HRA's concern when they consider granting HRA funds for
these types of developments?
Mr. Meyer inquired why they have gone from a proposed development
bordering on 66th Avenue and the people having to live with that
development, to including one more full block with another parking
lot to 67th. Therefore, they have thrust into the residential
areas with nothing more than another parking lot. Should they be
doing this to their fine residential areas?
Mr. Robertson clarified that the graphic may be somewhat confusing
and that the proposed UCD project only extends to 66th Avenue and
not beyond.
Ms. Schnabel stated Mr. Meyer has certainly raised some good
philosophical questions. She stated that at this time she would
like to hear from the developer.
Mr. Tom Schuette stated UCD has worked as a development company
specializing in smaller buildings like this one. All of their
developments are more or less driven by the Walgreen Company that
has identified Fridley as an expansion location. They considered
the southwest quadrant; however, it was suggested by City staff
that the City was really looking for a development to use the whole
10 acres on the southwest quadrant. With the lack of a grocery
store as an anchor that would use 6 -7 acres, they decided they
would be more successful to pursue the 2 1/2 -3 acre parcel on the
northeast quadrant.
Mr. Tom Schuette stated their business is retail and service for
the neighborhood, and the center would be a neighborhood center
designed to benefit from existing traffic, homes, and buildings in
the neighborhood (approximately 2 miles). It is not intended to
draw customers from a distance.
Mr. Schuette stated the light rail transit issue keeps coming up
as University Avenue might be selected as a corridor. If it is,
the Mississippi /University section may be a park and ride, and the
north side of their property might be selected for a parking lot.
The east side has also been considered for a parking lot, as well
as Columbia Arena. He stated they met with the Regional Rail
Authority a couple of times and were told that if the north side
the could UCD do some u
type of land swap such ch that the Authority
chosen,
HOUSING & REDEVELOPMENT AUTHORITY MTG., MAR. So 1990 PAGE 7
the additional single family lot was really predicated on the fact
that they needed it to make the project work.
Mr. Reese stated they are looking at a second generation use of
this property. He stated the buyer is expecting the developer to
build something other than the mundane. They are looking at long
lasting materials which will be attractive to the buyer. They are
planning prefinished masonry panels on the outside walls,
attractive bands that run through the building (permanent color,
not paint), and a generous overhang on all the open areas of the
stores.
Mr. Reese stated they showed the neighborhood that they will use
the same building materials on the back of the building as they
use on the front. They will put in a 6 ft. high fence, also made
of the same building materials, that will screen off the automobile
parking in the back. They are trying to create a controlled
environment on their own area . The neighbors on the east will see
the same type of building materials as the front. He stated they
will build a center that will fit into the neighborhood.
Ms. Schnabel asked Ms. Dacy to give a synopsis of the neighborhood
meeting.
Ms. Dacy stated the initial mailing list went out to the required
350 ft. by State law. Then by word of mouth, the mailing list was
expanded so that they now have a mailing list that extends down
66th Avenue to about Hayes Street. About 30 people attended the
neighborhood meeting. She stated staff received a petition the
previous day signed by 50 people who are against the proposed
project. She stated the major objections:
1. Traffic concern
2. People from the southwest quadrant and down the road from
Moon Plaza were concerned about the impacts into the
retail market.
3. Typical noise impacts
4. Odors
5. Property values
Mr. Meyer asked if the potential park and ride site was discussed
at the neighborhood meeting.
Ms. Dacy stated that Tim Yantos, Anoka County Regional Rail
Authority, attended the meeting. No presentation was made at the
meeting; however, after the meeting a number of people asked Mr.
Yantos him about the LRT planning process and the prospect for a
park and ride. He explained that a park and ride is a possibility,
,..� but that the decision would not be finalized until potentially
1991 -1992.
HOUSING G REDEVELOPMENT AUTHORITY MTG., MAR. 8, 1990 PAGE 8
Mr. Meyer asked if all the parking spaces in the park and ride
would be accessible from Mississippi through the new development.
Ms. Dacy stated that is correct. Of course, that also depends upon
Anoka County as Anoka County has plans to improve the intersection
of Mississippi /University. There will be four lanes north of the
median and three lanes south of the median and double left turn
lanes.
Mr. Robertson stated the County has told the City that if the City
can acquire the right -of -way at reasonable cost on the west side
of University, that improvement could conceivably occur in 1991.
City staff asked the County if they could do the improvement on the
east side of University this year in order to serve this
development and then come back later and do the west side. The
County said they could do that, but it will be at a higher cost.
They would rather do all the improvements at the same time.
Mr. Robertson stated that even though the S -2 zone essentially is
site plan specific, the proposal as shown by the architect meets
all the setback requirements and parking requirements of a normal
C -2 zone, with the exception of University Avenue which is an
exceptional case because of the wide right -of -way. So, if the
property is rezoned to C -2, it will not require variances except
for one along University.
Mr. Meyer stated he is still very concerned about the traffic
problems this development would create in this area.
Ms. Dacy stated the distance between the proposed driveway and the
intersection is better than any of the frontage road accesses they
have along University. She realized there will be conflicts, but
any development on that site is going to incur this type of problem
unless the site is left as is or the scale of the development is
reduced to the size of the 10,000 Auto Parts. Then, they still
have the situation where the existing driveways are too close to
University.
Mr. Newman stated the traffic from the proposed development would
have less impact than the traffic for an office building because
the traffic will be spread out over a wider period of time. There
will not be the 8:00 a.m. and 5:00 p.m. stacking times.
Mr. Robertson stated the traffic engineers from the Anoka County
Highway Department and the City engineers looked at this proposal
because of the traffic concern. Both convinced staff that the
critical design element is the distance of the driveway from
University, which has more to do with how traffic volumes are
handled than anything else.
HOUSING & REDEVELOPMENT AUTHORITY MTG., MAR. 8, 1990 PAGE 9
Mr. Robertson stated there is also the concern that if Walgreen
Drug is the anchor tenant on the northeast quadrant, it is going
to preclude as much commercial development on the southwest
quadrant. They won't have that option of 50,000 sq. ft. of retail
anymore. They would have more of some other use, office or
residential. He asked the traffic engineers that, looking at
proposals for the southwest quadrant with a minimum of 50,000 sq.
ft. of retail and maybe more retail, what kind of congestion would
there be compared to the proposed development for the 10,000 Auto
Parts site? Their answer was that it would be similar or worse.
Ms. Schnabel stated that if they had a project for the southwest
quadrant, it would be easier to make a decision. Maybe the HRA has
to additionally address the idea of what they want to do in terms
of funding.
Mr. Meyer stated he is also concerned about the 17 %.
Mr. Robertson pointed out it is less than what the HRA was
considering very favorably with Tanurb in the southwest quadrant.
Ms. Schnabel stated the Tanurb proposal was also a much larger
proposal and a much more inclusive proposal than this one.
Mr. Robertson stated staff discussed at length with the developer
and internally with staff the concern raised by Mr. Meyer about the
possibility of the project not being successful. He asked Mr.
Schuette to comment on what percent pre -lease agreements are
required by the lenders. He stated staff would probably put that
same requirement in the development agreement - -that they would not
proceed with the project unless they had sufficient pre -lease
agreements that would be indicative of a successful project.
Mr. Schuette stated 75 -80% of the space has to be leased. TCF does
not loan the money until they have leases in -hand and executed that
are more than sufficient to service the debt. Walgreens signs a
lease for 40 years, and they will use 11,000 of the 28,000 sq. ft.
They will have leases signed for a minimum of 3 years, but more
likely 5 years. The space will be 75% leased before they even
break ground under the policy the lenders require.
Mr. Newman stated that while the 10,000 Auto Parts site is smaller
than the Tanurb proposal for the southeast quadrant, there are some
unique features that will make it difficult for anyone to develop
it. It is his understanding that Red Owl has a master lease on
this property from the Theisen family for many years, and it is
going to be expensive for any developer to acquire that site.
Ms. Schnabel asked Mr. Schuette to explain their reasoning for
changing the request for assistance.
HOUSING A REDEVELOPMENT AUTHORITY MTG., MAR. 8. 1990 PAGE 10
Mr. Schuette stated two factors were involved:
1. Their initial plan did not include any homes, and it was a
slightly smaller building. When they met with the Anoka
County Highway Department, they were told that the median was
planned for improvement and the plans could not be changed.
So, acquiring the house added a substantial cost. And
acquiring the first house triggered the need to purchase the
second house.
2. The privacy wall which will be built of the same materials as
the building is an additional expense. The estimated cost is
$36,000. They are doing more than adequate landscaping.
Mayor Nee stated he understood Mr. Meyer's concerns. He stated the
Council is looking for some advice from the HRA. When the Council
first reviewed this project, the numbers were quite different, the
subsidy was quite different, and it appeared to solve a problem for
this property. As time went on and at the public neighborhood
meeting, he heard some of the same concerns expressed in 1965. It
is questionable whether the developer can make the project fit with
the neighborhood.
Mayor Nee stated another problem is the question of timing. Many
concerns are being expressed by the merchants on the southwest
quadrant. What is the idea of subsidizing a development on the
10,000 Auto Parts site when the City isn't solving the problems on
their corner? He stated that over the years, the Council and HRA
have said that the southwest quadrant was the third priority, and
the 10,000 Auto Parts site was the fourth priority. The northeast
corner is in kind of a subsidiary position, because it has so many
problems associated with it and so little promise. From strictly
a business point of view of improving the tax base potential, it
is better on the southwest quadrant than on the northeast.
Mayor Nee stated he does not speak for the Council, as the other
member may have different views. At the neighborhood meeting,
traffic was very much an issue, and he has not seen any well
defined statement of solution.
Ms. Schnabel stated the traffic issue will probably not be resolved
until the southwest quadrant land is made available to the County
for the improvements, and at this point, they do not know when that
will happen.
Mr. Robertson stated the County has said the interim solution is
merely to extend the existing median further east to this entrance.
That will help direct and channel the eastbound traffic. However,
the better solution would be to do the whole intersection
improvements which would involve the southwest as well as the
northeast quadrant to provide the additional lanes. If the HRA was
(-"-\ ROUSING 8 REDEVELOPMENT AUTHORITY MTG., MAR. 8, 1990 PAGE 11
to acquire the land in the southwest quadrant; namely, the Levy
property and the Dairy Queen (agenda item #4), then the necessary
right -of -way for the project to be done sooner could be conveyed
to the County. The County has said it is conceivable they could
do the entire intersection improvement as early as 1991.
Mr. Robertson stated Anoka County is aware of this project proposal
and seems willing to move up this project in their 5 year capital
improvement schedule to meet this need.
Mr. Robertson stated the HRA is at a point where they will have to
make a policy decision. If not this kind of use, then what kind
of use? This property has been in the Center City Redevelopment
District for ten years and has been earmarked for commercial
development. As Mr. Newman pointed out, would an office building
have any better traffic characteristics? The engineers say, no,
it will just be different.
Mr. Prairie agreed that it would be easier to make a decision on
this project if the southwest quadrant was done or at least
started.
Mr. Robertson stated staff is not asking the HRA to finalize the
project, but to approve the concept and direct staff to continue
refining the proposal.
Ms. Schnabel stated another possibility for this property is
something a little more modest than this plan. Maybe this proposal
is just too much for this property.
Mr. Robertson stated Casserly Molzahn's proforma shows that with
a land assembly grant of $300,000 which is necessary to support
28,000 sq. ft. of retail at prevailing rates, they are looking at
11 1/2 per year payback on the bonds. Presumably, less value means
less taxes and a longer payback period. It is the classic
redevelopment dilemma where, in order to get the taxes to
accelerate the payback, they need more density.
Mr. Burns asked if the 10,000 Auto Parts site is better for
commercial than the southwest quadrant.
Mr. Robertson stated that in terms of visibility and turning
movements, the 10,000 Auto Parts site is superior.
Mr. Schuette stated the east side of University Avenue is the going
home side of the street which is very important to the retailer.
Ms. Schnabel stated the HRA needs to address the amount of
1 assistance being requested. Do they feel comfortable with the
request for this size of a bond? If they don't, then what
assistance do they feel comfortable with that would help this
HOIISING & REDEVELOPMENT AUTHORITY MTG., MAR. 8, 1990 PAGE 12
developer or any other developer redevelop this particular section
of the downtown area? She is sensing that $350,000 is more than
what they anticipated and more than they are willing to give.
Ms. Schnabel stated she would also like to know if this has been
discussed with Chairperson Commers and what his feelings are about
this proposed project.
Mr. Robertson stated staff discussed this plan earlier with Mr.
Commers and Mayor Nee. Mr. Commers was generally in favor of the
project. However, at that time it was at the very early stage when
they were talking about using the pay -as- you -go mechanism. He did
not know how Mr. Commers feels now.
Mr. Meyer stated he is not happy with the high level of assistance.
He is not trying to tie his objection to the project to that facet.
Even if the project went ahead, he would wonder why they were
spending 17 %.
Mr. Newman stated staff is looking for some direction from the HRA
as to whether this is the type of proposed use they would like to
see go on this site and if they would like staff to proceed into
further negotiations for a development agreement.
Ms. Schnabel stated she had three reservations about this proposal:
(1) the amount of assistance being requested, (2) the density, and
(3) the traffic. Her reasons for these concerns are based on the
discussions at this meeting and the neighborhood's feelings about
the development. It is important that they redevelop their
downtown area and this particular piece of property because it is
unsightly as it is, but they should not redevelop it at the expense
of the neighborhood. She has a great concern for the residents of
Fridley and always has through all her various dealings with the
community.
Mr. Prairie stated that if circumstances were different on the
southwest quadrant, it would be a whole different ballgame.
Mr. Robertson stated that the HRA has three issues to consider at
this meeting:
1. Make a recommendation to the Planning Commission on the
specific redevelopment plan
2. Consider concept approval of the Redevelopment Contract
3. Make a recommendation to give notice for public hearing
to expand the TIF district to include the two additional
single family units
HOUSING & REDEVELOPMENT AUTHORITY MTG., MAR. 8, 1990 __ PAGE 13
NOTION by Mr. Meyer, seconded by Mr. Prairie, to recommend against
this specific redevelopment plan by UCD for the 10,000 Auto Parts
site to the Planning Commission.
Ms. Schnabel stated the HRA does have to recognize that at some
point, they will have to find some type of development that fits
on this property, because it is just as much a disservice to the
neighborhood to leave it sit this way forever.
Mr. Prairie and Mr. Meyer agreed.
Ms. Dacy stated the Planning Commission can still hold a public
hearing on this item and just announce the HRA's discussions and
recommendation. However, she was operating under the scenario that
if the HRA did not recommend this development, the developer might
want to reconsider either an alternate plan or to not proceed.
Mr. Schuette stated he did not think the plan can be altered. Any
changes would cause the building to be smaller, and smaller means
less revenue.
Ms. Schnabel stated that if staff anticipates members of the
neighborhood to be at the Planning Commission meeting, it might be
a good idea to proceed with the public hearing so the neighbors
can understand what has happened.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
Mr. Schuette stated they have been working hard with City staff to
make planning decisions, and he did not think they would have to
defend those issues before the HRA. He thought that would happen
at the Planning Commission. He stated they have far too much money
invested to drop the project if they do not have to.
Ms. Schnabel stated that if anything develops within the next
several months with the southwest quadrant, that might change the
HRA's feelings, but that is an unknown at this point.
Mr. Schuette stated he was not sure they can control this property
for that long a time.
4. SOUTHWEST QUADRANT POLICY DIRECTION:
Mr. Robertson stated staff has been reviewing several different
proposals for a mixed use development /commercial housing projects
on the southwest quadrant and they are anticipating some possible
interest from a corporate office also. In the meantime, they have
been informed that the owner, Fred Levy, has a potential buyer and
developer for just his site. The proposal does not need any
assistance or zoning approvals. If the HRA intends to develop the
,1*'�
HOUSING & REDEVELOPMENT AUTHORITY MTG., MAR. 8, 1990__ PAGE 14 --�
entire 10 acres, then it is best for the HRA to acquire control of
the Levy parcel at this time. If they do not move ahead with
acquisition at this time, then they face the inevitability that the
entire 10 acres may never be available and they might want to just
decertify this part of the Center City plan and not proceed with
it, because it would not be a comprehensive development, but small
parcel development.
Mr. Robertson stated staff is recommending the HRA direct staff to
begin conversations with Mr. Levy to negotiate an acquisition price
and come back to the HRA with an update at the next meeting.
Mr. Newman stated that at a luncheon meeting with Mr. Commers and
the Mayor, Mr. Commers asked that this be put back on the agenda,
because it was Mr. Commers' feeling that the HRA should seriously
consider acquiring the site. This was discussed by the HRA 3 -4
years ago, but since that time things have changed. If they are
going to upgrade Mississippi Street, early acquisition could speed
up the intersection improvements for Mississippi and University by
Anoka County. If the HRA is going to develop this site, they need
to do it very quickly; otherwise, the increment will run out and
they will not have that option. If the corporate user does not
step forward, then it is staff's recommendation that the HRA go
back to Ron Clark or another developer in order to get a project n
in place to consider so they have a development in place by next
spring.
Mr. Newman stated the HRA would have to own and lease and manage
the property until development occurs, but that might not be too
great a risk.
Mr. Newman stated the HRA has the money to acquire the property.
That is what the bonds were issued for back in 1985. The County
appraised the property three years ago, and the estimate was
slightly over $1 million. Mr. Levy had an appraisal done in the
amount of $1,050,000 and $1,150,000. In looking at the development
proposals in the last year, Mr. Levy agreed on a $1.1 million
purchase price.
Mr. Prairie asked what happens if the HRA acquires the property and
nothing happens in the next five years.
Mr. Newman stated the HRA would have to own, lease, and manage the
property for five years.
Mayor Nee stated he was also getting to the point where he thinks
the HRA has to do this. If they acquire the property, there will
be more of an incentive to make something happen in the southwest
quadrant in less than five years. They have to deal with this
corner. —`
HOUSING & REDEVELOPMENT AUTHORITY MTG., MAR. 8. 1990 PAGE 15
W
Mr. Meyer stated he is in favor of acquisition. He did not want
the KRA to be in the leasing and managing business, but he agreed
they have to do something with this corner.
NOTION by Mr. Meyer, seconded by Mr. Prairie, to authorize staff
to have an appraisal done on the Levy property and authorize staff
to approach Mr. Levy and begin negotiations regarding the purchase
of the property.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCENA3EL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
Mr. Newman stated that if the appraisal cost is any higher than
$2,500, staff will come back to the HRA.
5. CLARK ENGINEERING ET AL VS. FRIDLEY HRA
Mr. Robertson stated his memo to the HRA dated March 1, 1990
(agenda page 5) was self - explanatory. Mr. Newman has obtained a
summary judgment granted by the court that the claims against the
HRA and Clark Engineering are dismissed; however, the 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 for trial on June 18, 1991. Staff needs some policy
direction from the HRA.
Mr. Newman stated that when the law suit initially commenced, both
he and Mr. Commers were offended by it. There was no basis for the
law suit. At the HRA's direction, he attempted to negotiate a
resolution and in response received a summons and complaint. He
stated he needs some direction from the HRA as to whether they wish
him to pursue this claim for bad faith, to negotiate a final
settlement, or pursue it to trial to get the attorney's fees. It
does take staff time and HRA resources.
Mr. Meyer stated Clark Engineering is a competitor, but also a
colleague, and he would abstain from voting on any motion.
Mr. Prairie stated that if the HRA does not pursue this claim, he
would like to not see the City use any of Clark Engineering's
services in the future, even though the City has not hired this
firm in the past. He would be inclined to say that staff should
not pursue it.
Mr. Newman stated that if the HRA does not wish him to pursue it,
he will try to negotiate some concessions.
Ms. Schnabel stated it is her feeling that legal staff should not
pursue this.
11 `
HOUSING & REDEVELOPMENT AUTHORITY MTG.a MAR. 8. 1990 PAGE 16
Due to Mr. Meyer's abstaining from any vote, there was a lack of
a quorum for action on this matter; however, the two members did
indicate their recommendation not to proceed to trial.
6. LAKE POINTE MAINTENANCE CONTRACT AWARD:
MOTION by Mr. Prairie, seconded by Mr. Meyer, to accept the bid and
award the contract to Talberg Lawn and Landscape in the amount of
$32,850.00.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
7. CLAIMS (1988 - 1999):
OTION by Mr. Prairie, seconded by Mr. Meyer, to approve the check
register as submitted by staff.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
INFORMATION ITEMS:
8. 57TH PLACE STATUS:
,I_1\
Mr. Robertson stated the cost of the mitigation of the groundwater
pumping will be around $100,000 rather than $200,000. The PCA has
not apparently concluded their review of the environmental report
or concluded an agreement with Ashland Oil on the clean -up. Mr.
Newman has suggested that the HRA not bring this item off the table
until that agreement has been concluded, but recommends that as
soon as that agreement is reached, staff contact Winfield Develop-
ment to see if they are still interested in developing, and then
take this item off the table.
9. FICEK GOLF RANGE PROPOSAL FOR LAKE POINTE:
Mr. Robertson stated Mr. David Ficek has asked the City Manager to
approach the City Council on temporary use of the Lake Pointe site
on a year -to -year lease basis for a golf driving range.
Mr. Robertson stated it appears to be technically feasible, and it
would be a chance to recover some revenue. Mr. Burns points out
that the Council might want to give some direction on what kind of
political criticism the City might get for having a driving range
there, rather than just open space.
Mr. Robertson stated this is an information item, but staff would
welcome any comments the HRA members might have.
HOUSING & REDEVELOPMENT AUTHORITY MTG., MAR. 8, 1990 PAGE 17
Ms. Schnabel stated that if they allowed this type of use, what
other ideas for its use would they get? She felt it is best to
leave the Lake Pointe property as it is.
The HRA members were not interested in proceeding with this
proposal for a golf range at Lake Pointe.
10. REPLACEMENT OF STREET LIGHTING POLES & FIXTURES AT MOORE
LAKE COMMONS:
Informational item only.
11. OTHER BUSINESS:
a. ERA Goals and Objectives
Mr. Robertson stated he had given the HRA members the
first draft of the 1991 goals and objectives with some
notes from Mr. Burns on what he would like to see moved
to 1990. One of the items is a business retention
program (the City now has a computerized business
directory). Mr. Burns has asked that they do what they
can to identify a profile of high priority businesses
they can begin contacting later this year to try and
determine their needs for the future, much like they did
for Onan. He stated this is a worthwhile activity. It
can be done with their present budget, and he would
recommend they proceed with developing such a program.
Mr. Robertson stated he would like the HRA members to
review these goals and objectives and come back with
comments at the next meeting.
b. Center city Pictures
Mr. Robertson stated he would like the HRA's approval to
have enlarged, mounted, and framed a series of photos for
display in the Municipal Center showing the Center City
Redevelopment District in its various stages. The cost
is about $200. These photos show very dramatically the
progress that has been made since 1965.
The HRA members authorized staff to proceed.
c. Electrical Bids for ERA Parking Ramp Security
Surveillance System
Mr. Robertson stated the HRA previously approved the
security bid for $10,973 for the zoom camera, monitor,
and sound equipment. Included in the materials at the
meeting was a bid from Royal Electric to install some
HOUSING & REDEVELOPMENT AUTHORITY MTG., MAR. 8, 1990 PAGE 18
required additional electrical and sound wire conduit
work that staff was not aware of when the bid was
approved in December. Two bids were received, and the
lowest bid was $649. With the HRA's permission, it will
be added to the project and proceed.
The HRA authorized staff to accept the low bid and award
the bid to Royal Electric, Inc., for a total cost of
$649.00.
ADJOURNMENT:
MOTION by Mr. Prairie, seconded by Mr. Meyer, to adjourn the
meeting. Upon a voice vote, all voting aye, vice - Chairperson
Schnabel declared the motion carried unanimously and the March 8,
1990, Housing and Redevelopment Authority meeting adjourned at
10:05 p.m.
Res ectfully suhmitted,
t�
Ly Saba
Recording Secretary
ACTION ITEMS
KXJSNG and REDEVELOPMENT AUTHORRY
I
COMMISSION MEMBERS: LAWIENCE COMIERS, CHAIRMAN
MARE PRAM YMOMA SCIINASEL WALTER RASMUSSEN JOHN MEYER
CITY OF FRIDLEY
DATE: April 12, 1990
TO: Housing and Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: Revised Redevelopment Proposal for 10,000 Auto
Parts Site by Urban Commercial Development (UCD)
In response to concerns raised by the HRA at the March 8, 1990,
meeting, UCD had revised or provided additional information on the
following three subjects:
1. Financing
2. Compatibility with the neighborhood
3. Traffic issues
These revisions were reviewed by representatives of both the
Council and HRA on March 30. Although they still had some
reservations, they have encouraged the developer to proceed with
asking the HRA to consider the revisions and new data, and, if
favorable, proceed with a review by the Planning Commission and
City Council.
1. financing
With the demise of the 10,000 Auto Parts company and its
lease, the developer has been able to return the request for
assistance from a $350,000 grant upon completion to
approximately $300,000 on a pay -as- you -go basis. This would
reduce the financial risk on the project to zero.
As we go to press, the developer is still fine - tuning the
estimated $100,000, 5 year, carrying costs for the base
$200,000 to be included in a proposed pay -as- you -go agreement.
We anticipate having a final number by the HRA meeting. The
$300,000 amount is close to the preliminary HRA guidelines of
approximately 5 -8% of the project costs. It is: 9.3% of
$3,200,000 construction costs as estimated by the developer.
This is also comparable to the pay -as- you -go development
agreement the HRA approved for Northco, which was $70,000,
approximately 8% of Northco's estimated construction costs of
$855,168.
EXECUTIVE DIRECTOR: JOCK ROSERTSON 0431 UNIVERSITY AVE. (012) 671 -3460
FIRIDLET9 GIN 55432 EXT. 11 T
1 -A
Revised Redevelopment Proposal by UCD
April 12, 1990
Page two
2. Neighborhood Compatibility
Neighborhood compatibility has also been improved. Concerning
light rail transit, Anoka County Regional Rail Authority has
now taken the position that if a station were built on the
public right -of -way between the project site and University
Avenue, they would give first consideration to a drop -off
"kiss and ride" station. There would be no large parking lot
to the north, but the possibility of some shared parking
spaces to be reserved in an easement in the front setback of
the proposed project. At this time, this seems to be the most
likely light rail transit development if light rail ever comes
to pass (see page 1 -C).
Secondly, in terms of neighborhood compatibility, the
impervious surface ratio has been improved from 90% in the
original plan to 84% in the revised plan (see page 1 -D).
Screening on the north and east sides of the project have been
improved by additional setback widths and berms. The
developer has agreed to a landscape maintenance agreement
similar to the one between the City and Moore Lake Commons in
the HRA's development agreement. Also, the City Assessor has
estimated that the project would have a minimum negative
impact of $2,500 on the property values of the six adjacent
homes on the west and east. This is based on the performance
characteristics and the lack of complaints from the much
larger Holly Center on the west side of University.
Thirdly, the developer does not foresee a significant negative
impact on existing retailers (see pages 1 -E and 1 -F).
3. Traffic Impact
The other outstanding question raised by the HRA at the March
meeting concerned the traffic impact on the existing
Mississippi Street /University Avenue intersection. A part of
the question was the timing of the proposed improvements to
the intersection and also the impact of the maximum intensity
of development in the southwest quadrant on the same
intersection. A draft traffic study by Barton - Aschman
Associates indicates that given worst case assumptions about
both the traffic attracted off University Avenue and
Mississippi Street and also the traffic generated by the
proposed development, both the existing intersection and the
improved intersection proposed by the Anoka County Engineering
Department will be more than adequate to handle P.M. peak hour
traffic from 4:30 - 5:30. The worst case traffic
1 -B
Revised Redevelopment Proposal by UCD
April 12, 1990
Page three
characteristics during this peak hour would be at level D
(maximum delay of 30 seconds) which is comparable to the
present Osborne and University intersection (Barton - Aschman
report to be delivered on Monday, April 16).
In addition, Barton - Aschman estimates that the development of
a 200,000 sq. ft. office building in the southwest quadrant
may require two eastbound left -turn lanes on Mississippi
Street at University Avenue. The additional lane could be
provided with small additions of right -of -way from both Holly
Center and the southwest quadrant. There would be no
significant additional impact to the proposed development on
the east side of University Avenue. Representatives of
Barton- Aschman will attend the meeting to present the study
findings and answer questions.
4. Recommendations
Given these modifications and additional information, staff
recommends that the HRA:
a. Recommend approval of this specific development plan
�.,.1 to the Planning Commission for a public hearing on
April 25, 1990.
b. Give concept approval for preparation of a $300,000
pay -as- you -go redevelopment agreement to be reviewed
and acted on at a later HRA meeting.
JR:ls
M -90 -250
C. Make a recommendation to give notice for public
hearing to expand the TIF district to include the
two additional single family units to the east (see
attached map). The attached schedule indicates a
proposed sequence of City actions (see page 1 -G).
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1
1 -E
urban commercial developers, inc.
FRIDLEY TOWN SQUARE
Competition Profile
Fridley Town Square is designed to be a neighborhood service retail center. The
tenants will be retail and service businesses who perceive a significant demand
for their product within the local neighborhood. The center is designed to
service some of the everyday needs of the 46,000 people who live within two miles
of the intersection of University Avenue NB and Mississippi Street. The center
will also serve the existing traffic flows on University Avenue and Mississippi
Street (37,000 and 10,000 daily traffic, respectively).
Although several retail centers exist at this location presently, all the needs
of the local population are not being met. Many citizens of Fridley drive to
Northtown, Columbia Heights and other locations for some of their shopping needs.
Shoppers need convenience and will enjoy finding additional goods and services
close to home.
n Walgreen Drug will anchor Fridley Town Square. Walgreens is an 11,000 square
foot drug store which will provide a wide variety of merchandise in addition to
pharmacy.
Walgreens has grown to be the largest drug store chain in the country. This
growth has come from a commitment to the customer and the neighborhood. The
success of a new drugstore depends on convenience and acceptance by the
community. Walgreens has been welcomed to over 400 new locations in the past
five years.
Will the new shopping center succeed only at the expense of other retailers?
Definitely not. Fridley has grown a great deal since Holly Center, Rice Creek
Plaza and Moon Plaza were built. Fridley has over 10,000 households. These
homes are occupied by people who have a much higher demand for goods and services
than those of twenty years ago. The people appreciate convenience and the people
benefit by competition. Competitive retailers will assure that the community
enjoys a choice of goods and services at fair prices.
Will Fridley Town Square cause vacancies at other retail centers? No. Fridley r
Town square will be a 28,000 square foot retail facility. Other than Walgreens,
the center will bring 17,000 square feet of new retail space to the city. Holly
Center is 73,000 square feet. The population growth since Holly was built
certainly warrants 17,000 square feet of new retail space.
Also, as the city considers redevelopment of the southwest quadrant, many
existing retailers will be seeking a new location. Fridley Town Square will
provide a location where their existing clientele can continue.
Will Fridley Town Square cause a slower lease -up of Moore Lake Commons: No. Our
new retail space of 17,000 square feet could hardly be accused of slowing the
leasing of over 100,000 square feet of space almost two miles away. The fact
that these locations are far enough apart for each to be successful, is further
illustrated by the fact that the City of Fridley presently operates municipal
liquor stores at each of these approximate locations. Each of these locations
can be convenient to a profitable customer base.
Fridley Town Square will be a vibrant, first class shopping facility. The center
will be insulated from the adjacent neighborhood by a decorative block wall and
extensive landscaping. The parking areas will be safe and well lit. The
landscaping will be sprinklered and professionally cared for. The building
materials will be permanent. No materials used will require painting or
continued maintenance, thus assuring a continued look of quality.
fridley.ltr
04/12/90
1 -F
1 -G
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 18, 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
? Second and final reading of ordinance when
Development Contract signed and
stipulations met
Public hearing to expand TIF district
KNANG and REDEVELOPMENT AUTHORITY
COMMISSION MEMBERS: LAWRENCE CWMWS, Cw►R�
WANE PRAM VOMM SCMABEL WALTM RASMUSSEN JOHN MEYM
CITY OF FRIDLEY
DATE: April 12, 1990
TO: Housing and Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: Contract with Barton - Aschman Associates for
Traffic Study to be Paid for by UCD
In order to expedite getting answers to the traffic questions for
the 10,000 Auto Parts site proposal, we reached an agreement with
UCD in which they would pay for the study as an amendment to our
existing contract for the University Avenue Corridor by the Traffic
Engineering Division of Barton - Aschman Associates. The total
contract amount will be about $4, 000, and the contract will be paid
for by UCD.
JR:ls
M -90 -255
EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AYE. (612) $71 -3450
FRIDLEY, NN 55432 EXT. 117
-�
CLAIMS
(AT MEETING)
3
DATE 04 /12/90 CITY OF FRIDLEY - HRA PAGE 1
PROORAM POy08
CHECK RUN BATCH # :0003
DESCRIPTION
CHECK REGISTER
002 HRA
VENDOR DISC.
INV # PO /INV # SEO D PCNT
2000 + CHECK- PREPAID
F00026 FRIDLEY STATE BANK
INVESTMENT 00294 -01 6TD9340. .
TOTAL VENDOR
2001 CHECK- PREPAID **$#
N00101 NORTHWEST RACQUET, HEALTH CLUB
LAND PMT. 01295 -01 6TD90LO.O00(
TOTAL VENDOR
AMQUNT ACCT NUMBER
0�1t�(! 163,000.00 DR701 -10400
163,000.00 CR701 -10100
$ 163,000.00
120,000.01 DR451 -20200
120,000.00 CR451- 10101
$ 120,000.00
2002 CHECK - PREPAID
ZZ0237 ROLCHE, INC.
LAND PMT 00296 -01 6TD9000.0000 109,500.('0 DR451 -20200
109,500.00 CR451 -10100
t TOTAL VENDOR $ 109,500.00
2003 CHECK- PREPAID
100170 BARTON- ASC.HMQN ASSOC., INC.
PROFESSIONAL SERIVCES 00297 -01 6TD92I0.0000
PROFESSIONAL SERIVCES 00297 -02 6TD92LO.0000
ffff TOTAL VENDOR $
2004 � CHECK- PREPAID
00444 CASSERLY LAN OFFICE
MARCH LEGAL SERVICES OOT98 -03
MARCH LEGAL SERVICES 00298 -01
MARCH LEGAL SERVICES 00298 -02
TOTAL VENDORa
2005
CHECK- PREPAID ffff
F00023
FRIDLEY, CITY OF
f1AM EXPENSES
00299 -02
MARCH EXPENSES
00299 -03
MARCH EXPENSES
00299-04
MARCH EXPENSES
00299 -05
MARCH EXPENSES
00299 -06
n MARIA EXPENSES
00299 -07
MARCH EXPENSES
00299 -08
6TD8ZQO.0000
6TD9200.0000
6TD9300.0000
$
6TD8YJ0.0000
6TD81TO.0000
6TDSZk0.0000
6TD9000.0000
6TD9020.0000
6TD9050.0000
6TD9080.0000
2,817.78 DR460 -20200
2,817.78 CR460 -10100
1,106.84 DR460 -20200
1,106.84 CR460 -10100
3,924.62
873.00 DR450 -20200
873.00 CR450 -10100
2,087.90 DR460 -20200
2,087.90 CR460 -10100
530.50 DR461- 20200
530.50 CR461 -10100
3,491.40 )
179.46 DR450 -20200
179.46 CR450 -10100
27.44 DR450-20200
27.44 CR450 -10100
1.33 DR450 -20200
1.33 CR45 -10100
450.00 DR450 -20200
450.00 CR450-10101
36.00 DR450 -20200
36.00 CR450-10100
22.22 DR450 -20200
22.22 CR450 -10100
32.40 DR450 -20200
32.40 CR450 -10100
JOB
NO MESSAGES
INVESTMENTS, AT COST
CASH
ACCOUNTS PAYABLE
CASH
ACCOUNTS PAYABLE
CASH
ACCOUNTS PAYABLE
CASH
ACCOUNTS PAYABLE
CAI
ACCOUNTS PAYABLE
CASH
ACCOUNTS PAYABLE
CAM
ACCOUNTS PAYABLE
CASH
ACaCCUVTS PAYABLE
CASH
ACCOUNTS PAYABLE
CASH
ACCOUNTS PAYABLE
CASH
ACCOUNTS PAYABLE
CASH
AMTS PAYABLE
CASH
ACCOUNTS PAYABLE
CASH
ACCOUNTS PAYABLE
CASH
DATE 04 /12/90
CITY OF FRIDLEY - HRA
PAGE 2
PROGRAM P008 .
CHECK REGISTER
CHECK RUN BATCH # :0003 002 HRA
VENDOR DISC.
JOB
DE;,- dIPTION
INV # PO /INV # SEQ # PCNT
AMOUNT ACCT NUMBER
NMBR MESS
MARCH EXPENSES
00299 -09 6TD90HO.CXU
SM. 41 DR451 -20200
ACCOUNTS PAYABLE
338.41 CR451 -10100
CASH
MARCH EXPENSES
00299 -10 6TD90XO.0000
148.20 DR455 -20200
ACCOUNTS PAYABLE
148.20 CR455 -10100
CASH
MARCH EXPENSES
00299 -11 6TD9100.0000
54.08 DR455 -20200
ACCOUNTS PAYABLE
54.08 CR455 -10100
CASH
MARCH EXPENSES
00299 -14 6TD9130.0000
22.50 DR455 -20200
ACCOIAVTS PAYABLE
22.50 CR455 -10100
CASH
MARCH EXPENSES
00299 -12 6TD9160.0000
114.97 DR455 -20200
ACCOIANTS PAYABLE
114.97 CR455 -10100
CASH
MARCH EXPENSES
00299 -13 6TD9190.0000
114.96 DR455 -20200
ACCOUINTS PAYABLE
114.96 CR455 -10100
CAM
MARCH PERSONEL
SERVICES 00299 -01 6TD92S0.0000
37,451.75 DR460 -20200
ACCOUNTS PAYABLE
37,451.75 CR460 -10100
CASH
TOTAL VENDOR $
38,993.72
2006
CHECK- PREPAID
F00023
FRIDLEY, CITY OF
R£IMB -C /C REMODLING RAMP 00304-01 6TD9000.0000
20,788.00 DR450 -20200
MINTS PAYABLE
20,783.00 CR450 -10100
CASH
TOTAL. VENDOR
20,788.00
/-` 7
CHECK- PREPAID
.J019
HERRICK & NEWMAN
MARCH LEGAL SERVICES 00301 -01 6TD92V0.0000
1,278.90 DR460 -20200
ACCOUNTS PAYABLE
1,278.90 CR460 -10100
CASH
TOTAL VENDOR $
1,278.90
2008
CHECK- PREPAID
100049
IRJ SCHRODER BANK & TRUST
ADMINISTRATION
FEE 00302 -01 6TD8YDO.0000
250.00 DR381 -202U
ACCOUNTS PAYABLE
250.00 C M3 1 -10100
CASH
TOTAL VENDOR ff $
250.00
2009
$ CHECK- PREPAID * *ff
P00094
POPHAM, HAIK, SDINOBRICH,
PROFESSIONAL SRVICES 00303 -01 6TD90U0.0000
160.00 DR455 -20200
ACGOtJNTS PAYABLE
160.00 CR455 -10100
CASH
TOTAL VENDOR $
160.00
TOTAL NUMBER OF CHECKS WRITTEN : 000000 TOTAL DOLLARS FOR CHECKS WRITTEN : $
461,386.64 LAST CHECK NLAIRER : 001999
INFORMATION ITEMS
1-ft�,
IOUSNG and REDEVELOPMENT AUTHORITY
4
COMMISSION MEMBERS: LAWRENCE COMMERS. CMARMAN
MANE DRAW rRaNA SCHKABEL WALTER RASMUSSEN JOHN MEYM
CITY OF FRIDLEY
DATE: April 12, 1990
TO: Housing and Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: 57th Place Status
The Pollution Control Agency informed us that they anticipate an
agreement with Ashland Oil for a site clean -up by the end of this
month. Following a favorable assessment of our potential legal
liability by HRA legal counsel, David Newman, it would be
appropriate for the HRA to review the Winfield proposal for the
site.
I have requested Winfield to submit a preliminary agreement or an
acceptable lease commitment from their anchor tenant, Crosstown
Bank (see attached letter) . Mr. Bill Fogerty informs us that
Crosstown is in a better position to proceed than they were 1 1/2
years ago. Contingent upon an acceptable environmental legal
exposure, we intend to update any of the specifics of the Winfield
proposal and bring it back to the HRA for their consideration.
JR:ls
M -90 -253
EXECUTIVE DIRECTOR: JOCK ROBERTSON 9431 UNIVERSITY AVE. ($12) 571 -3450
FRIDLEY9 UN 55432 EXT. 117
OUSNG and REDEVELOPMENT AUTHOWY
COMMISSION MEMBERS:
4 -A
LAWMI CE COMIERS, CMAwMAN
SUAlE PRAM VMGMA MINABEL WALTM RASMUSSEN JOMN MEym
CITY OF FRIDLEY
April 9, 1990
Mr. Bill Fogerty
Winfield Developments, Inc.
1380 Energy Lane, Suite 112
St. Paul, MN 55108
RE: Winfield's Proposed Commercial Development at 57th /University
Avenue N.E.
Dear Mr. Fogerty:
We have been informed by the State Pollution Control Agency that the
environmental review process of the 57th and University Avenue site is near
completion. The Agency anticipates that the Ashland Oil Company will agree
to the site clean -up recommendations. Accordingly, the Fridley Housing and
Redevelopment Authority (HRA) is prepared to review the Winfield
redevelopment proposal for this site.
'would like to emphasize that the HRA has not received any information from
Lne Agency which specifically details the proposed agreement with Ashland
Oil. Before any formal agreement can be reached, the HRA needs to be assured
that they will not incur any environmental liability. I would also like to
remind you that it has now been almost a year and one half since the HRA
reviewed this matter so there is always the possibility that they may have
some new thoughts, although staff is currently unaware of anything.
In order to proceed, the HRA will need a development commitment from Winfield
consistent with the preliminary agreement that we reached in November 1988,
which includes an acceptable lease commitment from your anchor tenant.
Please inform your proposed anchor tenant, Mr. Tom Dolphin of Crosstown Bank,
that upon notification that Winfield is prepared to proceed with the proposed
project, the Fridley HRA will consider making the site available to Winfield.
Please do not hesitate to contact me if I can provide further information and
suggestions.
Sincerely,
Jock Robertson
Executive Director of Fridley HRA
JR:ls
90 172 iZECUTIVE DIRECTOR: JOCK ROBERTSON •431 UNIVERSITY AVE. (4 12) 671 -3460
FRIDLEY, SIN $6432 EXT. 1 17
r.►
IOUSNG and REDEVELOPMENT AUTHORITY
5
COMMISSION MEMBERS: LAwwjjCE Commms, cHANm"
MIME MAINE rM0/iA SCNNABEL WALTER RASMUEN JOHN MEYBI
CITY OF FRIDLEY
DATE: April 12, 1990
TO: Housing and Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: TCF and Skywood Mall Improvements
In July 1988, the City Council granted a variance to TCF to expand
their drive - through lanes based on a site plan which would use a
portion of the Skywood Mall driveway. The total cost of the TCF
expansion and driveway was estimated at the time to be $200,000.
Of that, a preliminary agreement was worked out with Skywood Mall
to pay $10,000 of that since it is on their property.
Subsequently, the Skywood Mall Partnership went into receivership
and they are not now willing to pay the $10,000 nor will they use
operating income funds. The City Manager is meeting with the
attorneys of the parties involved on Wednesday, April 18, and we
anticipate we will have some updated information on this matter.
There appears to be at least two options at this time:
1. The contract could be subdivided in such a way that the City
could do the $30,000 of driveway work and assess $20,000 of
it to TCF and $10,000 to Skywood Mall.
2. The other alternative would be for the HRA to contribute the
Skywood Mall's $10,000. The justification for this use is
contained in both the redevelopment plan and the tax increment
plan from Redevelopment District #4.
Staff will keep the HRA informed on the progress of the
negotiations.
JR:ls
M -90 -254
EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. ($12) 571 -3450
FRIDLEY, NN 55432 EXT. 117
ti
DATE:
TO:
FROM:
SUBJECT:
PLANNING DIVISION
MEMORANDUM
March 16, 1990
William Burns, City Manager
Barbara Dacy, Planning Coordinator
5 -A
Twin City Federal and Skywood Mall Improvements
The City Council, as part of their authorization to extend the
variance approval for one year for Twin City Federal last July,
directed the City Attorney and staff to work with the Skywood Mall
property owners to insure that Skywood Mall cooperates with Twin
City Federal. In order to carry out the Council approved plan,
Twin City Federal needs additional land area from Skywood Mall for
reconstructing the 52nd Avenue driveway entrance and a joint
parking area to the north of the Twin City Federal site.
A median in the 52nd Avenue driveway was an original building
permit stipulation on the Skywood Mall property. The variance
approval in July of 1988 for Twin City Federal to expand their
drive - through lanes was based on a site plan which utilized a
portion of the existing driveway of the Skywood Mall to be
reconstructed in order that Twin City Federal's drive - through
facility would be completely separated from the existing mall
driveway entrance.
The total cost of the Twin City Federal expansion and drive -up
facilities is approximately $200,000. Approximately $30,000 is to
be spent reconstructing the 52nd Avenue driveway with a median.
Twin City Federal has stated that they will pay for $20,000;
however, they determined that Skywood Mall should pay the remaining
$10,000 since it is on their property. Twin City Federal also is
paying all of the legal fees for this project (there are at least
nine attorneys involved).
On November 1, 1989, we met with Twin City Federal, the Skywood
Mall Partnership, 'Marquette Bank, and Towle Real Estate. The
Skywood Mall Partnership stated they are not willing to pay the
$10,000, nor will they use operating income funds. It was agreed
at that time that the City would try to pursue recovering a $10,000
bond which was retained in 1984 for outside improvements; however,
apparently, the bond was retained for improvements associated with
the motel. We have determined that these improvements for the
Twin City Federal and Skywood Mall
March 16, 1990
Page 2
motel have been completed. It is unlikely that the City could
collect the $10,000 if pursued.
As is indicated in a letter from Judy McDonald from Twin City
Federal on January 15, 1990, Skywood Mall will not give their
approval for the necessary easements unless there is no cost to the
partners or the receivership. Also, Twin City Federal must pay for
all legal costs associated with the work required.
The redevelopment plan and tax increment plan for the Skywood Mall
property (TIF District #4) identifies as an eligible activity
"development of proper traffic circulation patterns and improved
ingress and egress on public and private roadways ". In fact, the
tax increment plan states that "the development activities will
also include traffic and street improvements in the vicinity of the
intersection of 52nd Street and Central Avenue ". Apparently, the
City Council and the HRA already anticipated this improvement when
the original district was established. Therefore, we recommend
that the City Council and the Housing & Redevelopment Authority
authorize staff to begin the process to work with Twin City Federal
and the Skywood Mall property to implement the construction of the
52nd Avenue entrance median.
Also attached is the site plan for the Twin City Federal drive-
through expansion approved in 1988. In frustration of not
succeeding with the Skywood Mall partners, Twin City Federal has
applied for reconsideration of its original variance request which
would not use the Skywood Mall
property. We recommend implementation of the plan authorized by
the City Council in July of 1988. Should the City Council
authorize us to proceed, we will advise Twin City Federal that
their variance request is not necessary.
BD /dn
M -90 -192
5 -B
5 -C
TCF BANK SAVINGS fsb
MARQl f 11, 1- Al "EV, L • %11\ \E Ai ol-N V\ �;5 4U1 • ±7, 7tM ni
January 15, 1990
Barbara Dacy
City of Fridley
6431 University Ave. N.E.
Fridley, MN 55432
Re: TCF Drive -up Expansion
Dear Barbara,
This letter is to inform you of our latest attempts to get
approval from the necessary parties in order to reconfigure
the entrance to the mall and our property.
As you know, we have requested the city's permission to
proceed with our drive -up expansion per our original plan
which would not require the approval of the mall and all
^, other parties involved. This is especially true since we have
been unsuccessful in all our attempts to get the necessary
documents executed.
The expansion to our drive -up and all other necessary
changes such as paving a portion of the parking lot and
re -doing a portion of the entrance to the mall will cost
approximately $200,000. Approximately $30,000 of this cost
is being spent on items which will benefit the mall in that
the work being completed will satisfy requirement by the city
of Fridley. We requested that the mall or receivorship share
in a small portion of that cost. At the last meeting with
the city and some of the parties involved, we agreed to pick
up any costs on their share that would exceed $10,000. They
are still not willing to sign the necessary documents. In
addition, they have requested that TCF pay for all the
attorney fees of undisclosed amounts.
At the last meeting with the city it was our understanding
that the city would attempt to use a $10,000 bond, which was
outstanding, and if that would not work perhaps the
receivorship would take it out of the operating funds.
According to the city attorney, it is unlikely that the bond
will be able to be used. Therefore, I approached the agent of
the receivorship, Towle Co., to see if they were willing to
pay the $10,000 out of operating funds. I spoke with Mike
Murphy, of Towle, as Richard Ducharme was not available, and
he said they were having a meeting with the parties involved
regarding this issue and would get back to me the following
week. He did not, and I phoned again to find out the results
of the meeting. I was told there had not been a meeting -and
he did not know if there would be funds available to pick up
this cost.
At about the same time our attorney, Fred Thorson, received a
phone call from Scott Knudson, representing Marquette Bank,
the first mortgagee. He stated that his understanding from
the meeting with the city and TCF, was that TCF would pick up
the $10,000 cost if the city was unable to collect on the
bond. He said the only way Marquette will give their
They approval
are no cost to
them or
thehcityctov p.
place
They
any assessments on the property.
Our final conclusion is that unless TCF is willing to pay for
all costs associated with the work required on the roadway
and all legal fees for all parties involved, they will not
give the necessary approvals.
Therefore, we believe the only way for us to accomplish our
drive -up expansion is to return to our original plan which
would only use our own property and would not require
approvals from all these parties involved.
We thank you for your cooperation in this matter and we are
still willing to work with the city and others, even though
we have been stopped at every attempt to resolve this matter
in an equitable manner.
I look forward to hearing from you in regard to this matter.
Sincerely,
Jud� McDonald
Corporate Real Estate
(612) 370 -7081
cc: F. Thorson
B. Galush
T. Ogaard
5 -D
pzm
5-E
assessed valuation. Included is also a very general antici-
pated captured assessed value at the completion of all
phases in the district.
It is the intent of the Housing and Redevelopment Auth-
ority to promote industrial /commercial development in_Phases
II, III, IV and V, which will be consistent to existing
development in the general area and the overall City Com-
prehensive Plan.
Public improvements to these phases will include soil
correction work, drainage district improvement costs, inter-
section and street improvement to adequately handle traffic
general, utility and public right -of -way improvements.
TAX INCREMENT FINANCING DISTRICTS NO. 4 AND 5
(See attached T.I.F. Plans)
Subsection 1.10. Public Improvements and Facilites
Within Redevelopment Project No. 1. Publicly financed im-
provements within Redevelopment Project No. 1 include but
are not limited to:
a. The acquisition and sale and /or lease of
the parcels identified in Subsection 1.7. hereof;
b. Soil corrections, including excavation
and backfill;
C. Installation and /or upgrading of utili-
ties and other public improvements;
d. Development of proper traffic circulation '��
patterns and improved ingress and egress on public
and private roadways;
e. Funding of the Reserve Program; and
f. Other authorized uses as provided by
State law.
Subsection 1.11. Environmental Controls. The proposed
development in Redevelopment Project No. 1 does not present
significant environmental concerns. All municipal actions,
public improvements and private development shall be carried
out in a manner consistent with existing environmental stan-
dards.
Subsection 1.12. Proposed Reuse of Property. The pub-
lic improvements neede to ring about development and rede-
velopment as set forth in Subsection 1.9. above include
acquisition and sale of land, relocation of existing public
improvements, demolition and site improvements.
1 - 15
3. Des
on of Tax Inc
Increment District
legally described in
made a part hereof.
shall consist Or
Exhibit At which is
�5y(jBI �r/ 7701V
-oT&/&PQ&�VrPbfA/
iistrict. The Tax
5 -F
the real property
attached hereto and
4. Statement of Objectives. The objectives-which
and
Authority seeks to realize or encourage by adoption
implementation of the Redevelopment District. Redevelopment
rict and Plan are stated in
Plan, and the Tax Increment Dist
nt Plan and include without
Subsection 1.5 of the Redevelopme
limitation the encouragement of desirable development in within
the City, the increase in employment Opportunities
City, the increase of the tax base of the City, the encou-
ragement of orderly planning and commercial expansion, the
promotion of sound u and other development, of tf financial land
ment of funding systems
other assistance needed to realize such goals.
5. Development Program and Activities. The general
development program is stated in Subsections 1.2 through
1.15 of the Redevelopment Plan. The development activities
which the Authority proposes to undertake within the Tax
Increment District include the development of certain pro-
perty within the Tax Increment district as a commercial
printing and packaging facility (the "Contract Project ").
The Authority has consummated a certain Contract for Private
Development, dated October 14, 1983 (the "Contract "),
Frank Shear Associates, a Minnesota general partnership,
concerning the Contract Project. Under the Contract, the
Authority will acquire and convey to Frank Shear Associates
the property within the Tax Increment District which is
legally described in the Contract. The public cost to the
Authority under the Contract is estimated to be $30,000 (the
"Contract Project Costs "), and the expected date of comple-
tion of the Contract Project is no later than 18 months
after the date of execution thereof. The development
activities will also include traffic and street improve eats
In the vicinit of the me s c ion o e
en ra venue ortheast the "Street m r in of the IDB
4: A
eve opmen active ies a so include the un g
Account, a security reserve fund for the Authority's Common
Bond Fund for the ultimate f promotion and
Redevelopment Plane emet of
the goals and objectives
6. Estimated Costs. The estimated costs of the acti-
vities to be undertaken and financed within and under the
Tax Increment District and Plan (collectively, the "Esti-
mated Project costs w) are $30,000 Contract Project Costs;
plus an estimated $35,000 for Street Improvement costs; plus
administration expenses, presently estimated not to exceed
$250,000; plus the remaining tax increments to be generated
by the Tax Increment ncre ents") , District to be used to fund, whether duration
(the "Reserve I by
- 2 -
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AREA &Or& r,.%rJ CONCWRW -PLAN APPROVED BY OOUNCL JLLY 11, 1988
FUTURE PARKING LOT EXPANSION
I
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9)eoAchitx%,lr)c.
A PRELIMINARY SITE PLAN
fill
Nov.
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7
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A PRELIMINARY SITE PLAN
A
OUSNG and REDEVELOPMENT AUTHORITY
COMMISSION MEMBERS:
6
LAMIIENCE COMMERS, CHAPMAN
MANE DRAW VO GINIA SCHNASEL WALTER RASMUSSEN JOHN MEYER
CITY OF FRIDLEY
DATE: April 12, 1990
TO: Housing and Redevelopment Authority
FROM: Jock Robertson, Executive Director of HRA
SUBJECT: 1990 -1991 HRA Objectives and Activities
At the last meeting, I distributed copies of the proposed HRA
objectives and activities for both the revised 1990 work program
and for 1991. The major change is to give high priority in 1990
for a business retention program in which we would identify a
priority list of businesses to be contacted by the staff to
ascertain their present needs and if there is a need for city
assistance to retain the tax base jobs. This activity will use
the data base of the business directory which was produced in 1989.
Please give us your comments on needs, priorities, additions, or
deletions. The Council will find them very useful in the 1991
budgeting process.
JR:ls
M -90 -256
EXECUTIVE DIRECTOR: JOCK ROBERTSON $431 UNIVERSITY AVE. (*12) 571 -345
FRIDLEY, NN 55432 EXT. 117
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FRIDLEY
n
PLANNING DIVISION
MEMORANDUM
DATE: March 29, 1990
TO: William Burns, City Manager
FROM: Barbara Dacy, Planning Coordinator
SUBJECT: Neighborhood Meeting for 10,000 Auto Parts
Redevelopment Site; Fridley Town Square
Urban Commercial Developers conducted another neighborhood meeting
on Tuesday, March 27, 1990. Approximately 80 letters to area
homeowners were sent and approximately 35 persons attended. Scott
Erikson, Frank Reese, and Tom Schuette, reviewed the revised site
plan showing additional landscaping and setbacks along 66th Avenue
and along Mississippi Street. The homeowners had the following
comments:
1. The homeowners to the north on 66th Avenue and immediately to
the east of the development asked the developer to evaluate
constructing some type of a berm or hill to place the wall on
to elevate the wall height.
2. A number of questions were asked about the length of the
tenant leases and the types of uses to be located in the
building.
3. The homeowners questioned the longevity of the building
materials and the procedures to maintain the property.
4. Some homeowners continued to express their feeling that there
is no need for additional commercial in this area.
5. A majority of the homeowners indicated by a show of hands that
they would prefer a Light Rail Transit parking lot at that
location rather than commercial development. Although it was
explained that the area has been included in the redevelopment
plan since 1979, the homeowners felt that preservation of the
neighborhood should take precedence.
6. A significant portion of the meeting dealt with the traffic
issues and the ability to move in an out of the site,
especially the left turn movement into the site and the east
bound movement out of the site.
Fridley Town Square
March 29, 1990
Page 2
A number of persons after the meeting stated that the revised site
plan improved the compatibility with the neighborhood; however, the
homeowners continued to object to the use of the property as
commercial.
BD /dn /
cc: Housing & Redevelopment Authority ✓
Planning Commission
M -90 -208
unoF
FRIDLEY
DATE:
TO:
FROM:
SUBJECT:
PLANNING DIVISION
MEMORANDUM
March 19, 1990
William Burns, City Manager
Barbara Dacy, Planning Coordinator
Status of Osborne Crossings Development
Proposal
Jerry Farrell contacted me today and advised me that he could not
receive financing for the Osborne Crossings project. Farrell noted
that he had 70% of the retail space pre- leased (this is a good
indication of the market interest given the recent debate of
whether or not the Urban Commercial Developer's project would
survive) . Farrell stated that the commercial banks wanted projects
that did not have any risk and a developen that has a longer track
record than his. He stated that the banks determined that the
theater was too risky in a soft market.
Farrell stated that the owners of the building were seeking
potential tenants for lease -up of the existing building. We will
be contacting the representative of the building owner to insure
that he is aware of our development requirements.
Farrell is closing the SBF Development office and is seeking
employment.
BD /dn
cc: Housing & Redevelopment Authority packet c�
Planning Commission packet
M -90 -195
TO: FRIDLEY H.R.A.
FROM: CITY OF FRIDLEY
RE: BILLING FOR OPERATING EXPENSES FOR MARCH, 1990
AND FIRST QUARTER 1990 ADMINISTR.ATTVE E&PENSES
FIRST QUARTER ADMINISTRATIVE BILLING 37,451.75
37,451.75
OPERATING EXPENSES:
FRAMED PICTURES
I79.46
POSTAGE
27.44
LONG DISTANCE
1.33
REGISTRATION - ROBERTS
450.00
BX -LtiNCHES (8) T
36.00
DELIVERY SERVICE
22.22
DELIVERY SERVICE
32.40
FIXTURE & GLOBES FOR LIGHTS
338.41
BID NOTICE - LAKE POINTE MAINTENANCE
148.20
BID NOTICE - LAKE POI,NTE MAINTENANCE
54.08
/) ELECTRICITY
114.97
ELECTRICITY
114.96
BOX LUNCHES (5)._
22.50
TOTAL EXPENDITURES FOR MARCH
$1,541.97
TOTAL EXPENDITURES
$38,993.72
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