Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
HRA 05/10/1990 - 6389
w HOUSING AND REDEVELOPMENT AUTHORITY MEETING, THURSDAY, MAY 10, 1990 7 :00 P.M. WILLIAM BURNS, CITY MIAGER & DIRECTOR OF HRA i CITY OF FRIDLEY 11'1 A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, MAY 10, 1990, 7:00 P.M. Location: City Council Chambers Fridley Municipal Center 6431 University Avenue N.E. CALL TO ORDER: ROLL CALL: APPROVAL OF MINUTES: April 18, 1990 ACTION ITEMS• ACQUISITION OF RICE PLAZA CENTER . . . . . . . . . . . . .1 CONSIDERATION OF 1990 -91 OBJECTIVES & ACTIVITIES . . . . .2 - 2F ESTIMATES: MTI DISTRIBUTING COMPANY (LAKE POINTE MAINTENANCE). .3 TALBERG LAWN & LANDSCAPE (LAKE POINTE MAINTENANCE). .4 - 4A CLAIMS. . . . . . . . . . . . . . . . . . . . . . . . . .5 INFORMATION ITEMS: 1990 QUARTERLY WORK PROGRAM . . . . . . . . . . . . . . . .6 - 6A UPDATED 1990 PROJECT BUDGET . . . . . . . . . . . . . . . .7 - 7E ELECTRICITY BILLINGS TO HRA . . . . . . . . . . . . . . . .8 IVE PLAN UPDATE: OUTLINE AND SCHEDULE . . . . .9 57TH PLACE STATUS . . . . . . . . . . . . . . . . . . . . 10 - 10H OTHER BUSINESS ADJOURNMENT A I It CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY MEETING, APRIL 181 1990 CALL TO ORDER: Chairperson Commers called the April 18, 1990, Housing and Redevelopment Authority meeting to order at 6:38 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, John Meyer, Duane Prairie, Walter Rasmussen Members Absent: None Others Present: Jock Robertson, Executive Director of HRA William Burns, City Manager Barbara Dacy, Planning Coordinator Rick Pribyl, Finance Director Dave Newman, HRA Attorney Scott Erickson, UCD Tom Schuette, UCD Dave Koski, Barton - Aschman Associates APPROVAL OF MARCH S. 1990. HOUSING & REDEVELOPMENT AUTHORITY MINUTES• MOTION by Mr. Prairie, seconded by Mr. Rasmussen, to approve the March 8, 1990, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS• 1. REVISED UCD REDEVELOPMENT PROPOSAL FOR 10.000 AUTO PARTS SITE: Mr. Robertson stated there are four components that need to be reconsidered in a revised proposal by UCD: 1. Financing. UCD has revised their request back to pay - as- you -go. 2. Questions of neighborhood compatibility were raised and considered at the last HRA meeting. Some revisions have been made on this. HOUSING & REDEVELOPMENT AUTHORITY MTG., APRIL 18, 1990 - PAGE 2 3. Traffic questions. A traffic study has been done which staff believes answers the questions raised at the last HRA meeting. 4. Timing. How will the proposal fit with the intersection improvements and redevelopment of the southwest quadrant? Financing Mr. Robertson stated that with the demise of the 10,000 Auto Parts Company and its lease, the developer has been able to return to the original concept of financing as a pay -as- you -go grant, rather an up -front grant upon substantial completion of the project. With a pay -as- you -go grant, the grant comes only from the funds paid by the development in property taxes. Essentially now, the developer needs an extra $100,000 for the carrying costs for that $200,000. It looks like it would be in the neighborhood of $300,000 for five years or up to $315,000 for six years. Mr. Robertson stated the $300,000 9t of the estimated construction previously for Northco. is very comparable - -a little over costs - -to the 8% the HRA approved Mr. Rasmussen stated he wondered about the permanent financing and the construction financing. At what point does the developer deliver a firm commitment on the permanent and the construction financing? Mr. Scott Erickson, UCD, stated they have started the construction financing process now, and they hope to be able to deliver a letter of commitment for the construction financing within 60 -75 days. That commitment will contain certain prerequisite requirements for funding for closing, the primary one being a 70 -75% preleasing agreements with leases that are approved by the lending bank. The lending bank does the same in -depth analysis on each of the lessees UCD brings to the project. Mr. Erickson stated the banks and savings and loans today apply a lot more scrutiny to proposed projects and financing before they will deliver a commitment. Approximately 40% of their project is represented by a major national retailer, Walgreen. In addition to the Walgreen Store, they will have to prelease an additional 7,000 sq. ft. in order to meet their funding commitment. They will not get a commitment letter from the lending institution unless they believe right up front that this is a viable project. At this point in time, with their experience in the last couple of years in the buildings they have financed and the individual who is arranging the financing for them, their confidence level is very high on this project. P -"- e c, 11 = ROUSING 6 REDEVELOPMENT AUTHORITY MTG.. APRIL 18. 1990 - PAGE 3 Questions of NeigMorhood Compatibility Mr. Robertson stated this concerned two topic areas: (1) the relationship of the project to the proposed LRT station at this intersection, particularly it was an intrusion issue, in the possibility that homes might be taken in the future by the Anoka County Rail Authority for a park and ride station. (2) the buffering and compatibility with the homes that are immediately adjacent to the project. There are four homes to the north across 66th Avenue and two homes to the east in addition to the two homes on which the developer already has purchase agreements. Mr. Robertson stated Barbara Dacy, Planning Coordinator, has been working on both these issues, and she is at the meeting to discuss these with the HRA. Ms. Dacy stated the developer has updated the site plan to incorporate the comments to increase the buffering and screening on the property. They have increased the setback 15 feet along the north lot line along 66th Avenue, have reduced the number of parking spaces on the site, have increased the front setback to 15 feet, and are still proposing a minimum 6 foot masonry wall in a style consistent with the exterior of the proposed shopping center. Ms. Dacy stated the developer conducted a second neighborhood meeting the end of March. They tried to work with the neighbors immediately abutting the area to the east and across the street on 66th Avenue to see what types of landscaping, vegetation, location of fence, etc., the neighbors wanted. The developer is still in the process of working with the homeowners. Ms. Dacy stated the neighborhood continues to be concerned the typical maintenance issues regarding the shopping center. The neighborhood is used to seeing some litter and debris on the existing property, and they are concerned that is going to continue. In a case like this, in the Moore Lake Commons agreement, the HRA required a maintenance agreement to keep the landscaping healthy and keep the grounds clean, etc. Staff would recommend the HRA implement the same maintenance agreement for this project as a condition of approval. Ms. Dacy stated that regarding the LRT issue, Anoka County is continuing to look at the site as a "kiss and ride" versus a "park and ride ". Anoka County is continuing to refine their projections for the demand of a "kiss and ride" versus a "park and ride" lot. They have reviewed this revised site plan, because in deference to the first site plan, the parking along Mississippi Street has been a HOUSING i REDEVELOPMENT AUTHORITY MTG., APRIL 18, 1990 - PAGE 4 removed because those spaces were only 5 feet from the property line which was in conflict with the City's setback requirements. Ms. Dacy stated Anoka County has recommended that as a "kiss and ride" if the LRT station is to be located here, they want to reserve an easement along the front area so they would have the ability to install additional parking spaces, when the LRT line is constructed. Ms. Dacy stated that summarized the neighborhood compatibility issues. The other major issue the neighborhood is concerned about it, of course, the traffic issue, and Mr. Robertson will address that. Mr. Meyer stated his objections or concerns on the property are not confined only to traffic impacts. He is still not satisfied that the HRA is analyzing this development as a needed and desirable development for the City of Fridley. Again, this is a philosophical point: To what extent should the HRA concern itself with putting in another shopping center that is going to be in competition with other centers that are gasping for financial life, whether it be Holly Center, Moon Plaza, Rice Plaza, Skywood Mall. Here is another development that would be using public monies. At some point, the HRA should stop and take a look to see whether or not this is something they should do regarding the City's long term welfare. Mr. Meyer stated he also thought there are going to be horrendous traffic problems. If they create a major traffic nuisance, it not only blights the intersection, but it also runs a fair chance of blighting the economic development of this particular center. Somewhere along the line, they have to reach beyond traffic impact and immediate neighborhood compatibility and financing and look at whether this is a proper project for public money. Mr. Commers asked what the guidelines would be - -the effect of competition on similar retail spaces in the City of Fridley? Mr. Meyer stated that could be. Competition in light of the obviously depressed rental market in the City for this type of center. There will be one major tenant, Walgreen, and then other smaller shops, all of which could well be in direct competition with other stores that are either struggling for existence or are going out of business. So, competition in light of the rest of the economic development in the City. Mr. Robertson stated Mr. Meyer raised these questions at the last HRA meeting. Staff asked the developer to comment on these questions, and the answers are contained on agenda page 1 -E and 1- F. e G a HOUSING i REDEVELOPMENT AUTHORITY MTG., APRIL 18. 1990 - PAGE 5 Mr. Rasmussen stated that if this project is going to be financed by a major bank or financial institution, a lot of Mr. Meyer's questions will have been answered. Mr. Prairie asked the developers if they could give the HRA some examples of the types of businesses that might go into this proposed center. Mr. Tom Schuette, UCD, stated they know there will be a Walgreen store. In addition to the Walgreen store, the shopping center will be aimed at the neighborhood convenience type of retailer. They have received interest from a variety of those use categories and some will conflict or compete with like businesses in the City, such as a pizza shop, hair salon, dry cleaning business, printing business, etc. There will be 6 -7 stores or shops. Mr. Schuette stated there is retail on the corner of University and Mississippi, but there has not been any new retail in a long time. During the time that Moon Plaza, Rice Plaza, and Holly Center have been in existence, Fridley has grown a great deal. They are bringing 17,000 sq. ft. of new retail space in addition to Walgreen. That is not a major amount of space. Holly Center is about 75,000 sq. ft., and they are only adding about one - fourth the size of Holly Center. Mr. Schuette stated there is concern that redevelopment happen on the southwest quadrant. He stated that when that happens, that might require some existing businesses to need a new location. So, it is possible that even if their center is built and the southwest quadrant is developed, there could be a net loss in retail space at the intersection, depending on how well it gets developed. Mr. Schuette stated there is also concern about the success of Moore Lake Commons and the leasing status there. Moore Lake Commons has made a lot of progress in terms of new shops; and in talking with the leasing agent, the health club, which has 5,000 members already signed, will cause a lot of activity at that intersection which will be a big boost for the retailers in Moore Lake Commons. Another factor is that Moore Lake Commons is almost two miles away from the 10, 000 Auto Parts site; and in terms of convenience uses they have in mind for their center, the two centers are far enough apart to provide certain use categories that can be repeated at both locations. Mr. Erickson stated they just learned that day that the TCBY Corporation is interested in another shop at the 10,000 Auto Parts location even though they have a shop in Moore Lake Commons. He brought this up because it is a case in point where a geographic distance and a different intersection provide a second opportunity ,.� for this business in Fridley. A second example is the City HOUSING i REDEVELOPMENT AUTHORITY MTG,, APRIL 18, 1990 - PAGE 6 Municipal Liquor business which has two locations within the City no more than two miles apart. Ms. Schnabel asked if there is any difficulty in leasing space in the new Moore Lake Commons East because of its close proximity to Moore Lake Commons West (the old Shorewood Plaza). If there is a problem, then that supports what Mr. Meyer is saying. If not, then it supports what the developer is saying. Mr. Robertson stated the old Shorewood Plaza is all leased except for two bays, one of which was the hardware store which went out of business after about six months. Mr. Rasmussen stated that, again, whoever finances this project will look very carefully at it from an economic standpoint. Mr. Erickson stated that the newly vacated hardware store space is at least 80 feet in depth. The spaces in the new Moore Lake Commons building that are unleased are probably 55 -65 feet in depth. From his experience as a shopping center developer, the larger businesses (liquor store, hardware store) cannot go into 60 -65 ft. spaces. From the owners' perspective, they probably feel the existing center is a positive force for marketing the new space because of the amount of business the existing space already brings to that property. Ms. Schnabel asked about the occupancy rate for Holly Center. n Mr. Robertson stated Holly Center is all leased except for the hardware store which recently went out of business. He asked Mr. Erickson how he would characterize Holly Center as opposed to the average occupancy in this area. Mr. Erickson stated that in the class of strip centers, metro -wide, the Twin Cities is running an average of 93 -94% across the board. The vacancy that has occurred at Holly Center was the Coast to Coast Hardware Store, and he believed the entire chain of Coast to Coast stores have folded nationwide. So, this was vacancy that developed not because of the location or any inadequacy in the center, but it was because an entire operation folded. He would guess that within 90 -120 days, Holly Center will identify 1 -2 users to reoccupy that space. From a shopping center developer's perspective, he would consider Holly Center a very attractive and viable center. Mr. Meyer stated Mr. Rasmussen's point is well taken about a bank or financial institution critiquing the worth of a project. However, he would expect a bank to worry about the success of the one project, not other businesses in the area. Mr. Rasmussen stated he believed that when a bank analyzes a project, they take a look at the entire impact. He has seen quite $OIIBING i REDEVELOPMENT AUTHORITY MTG., APRIL 18, 1990_ - PAGE 7 I—� a few banks that are very concerned about the impact on the whole neighborhood. They are doing this more and more. Mr. Meyer stated he was glad to hear that. He stated there is a Planning Commission and City Council that can address this kind of issue as to whether a project should be pushed in the City. But, the HRA has been given more of an opportunity to put something into motion than either the Planning Commission or City Council, so the HRA has a higher duty to worry about such things as what impact a project has on the City. If it had not been for Old Country Buffet and Snyders, he believed they would probably be seeing about a 50% vacancy rate in Holly Center. Mr. Meyer stated that from a very pragmatic standpoint, the HRA might be getting into the landlord business if the HRA buys Rice Plaza, and they better be very sure they have a shopping center that is viable and brings in money and not encourage competition across the intersection from them. Mr. Meyer stated he is not convinced that anyone has done any real thinking about this point. Do they have any business encouraging the type of development that is going to be in direct competition with other developments that are barely hanging on. Mr. Commers stated one of the issues that comes with redevelopment is that it will bring in competition to less desirable locations. For example, any type of additional retail commercial space that comes in has the ability to attract space away from the Moon Plaza Shopping Center, which is part of the HRA's redevelopment plan, although a lower priority. They have to look at it from the perspective that they continuously try over a period of time to upgrade properties and upgrade the City and hope that by the system of competition the weaker, the less viable, businesses go out of business and new ones replace them. It is kind of an ongoing continuous circle. It may be idealistic and it might not always work, but the intention is to upgrade the City. Mr. Commers stated the 10,000 Auto Parts site is an eyesore right now. He did not know what other development could go in there that would be any different. This might not be the greatest project,but it certainly is a nice project and fits the Center City redevelopment which was commercial /retail on that space. The realities are that the developer would not be putting in monies and the bank would not be putting in monies if they did not think this was a viable project. Mr. Erickson stated the lending bank he has dealt with on his last two projects, TCF, one of the things they base their decision process on for a loan is an MAI appraisal of the project to see if the finished product will warrant the bank's investment. That MIA appraisal takes into account the precise concerns raised by the Mr. Meyer: HOUSING i REDEVELOPMENT AUTHORITY NTG., APRIL 18, 1990 - PAGE 8 1. What are the existing vacancies of the community? 2. What are the rent levels in the existing properties? 3. What are the lease -up prospects for the existing vacancies? 4. How does all of the above affect the subject properties' ability to get leased up at the necessary rate to support the financing required? Mr. Erickson stated that in its experience over the last five years, lending institutions rely more and more heavily on these appraisals. The appraisals over the last five years have changed to focus more on conditions outside of the subject property, because those definitely do affect the plight of new buildings. If the appraisal does not come within the parameters that support the guidelines that are set out by the bank's committee, they will turn a project down. Traffic Considerations Mr. Robertson stated that one of the major issues raised at the last meeting was the question of how the traffic generated by the proposed project would impact both the existing street system and the proposed street system at the intersection of University and Mississippi and, particularly, there were concerns about the left turn pattern into the project on eastbound Mississippi. Mr. Robertson stated the City contracted with Barton - Aschman Associates to study this traffic generation issue and address each of the questions raised by the HRA raised at the March meeting. Mr. Dave Koski from Barton- Aschman is at the meeting to present the results. Mr. Robertson stated that what Barton - Aschman substantially found was that: 1) the existing level of traffic is about level D, which means there could be a maximum delay of up to 30 seconds for a stop or a turn; 2) that the traffic generated by this proposed project, given two critical worst case assumptions, will have little effect on either the existing street pattern or the proposed improvement. It will go from level D to level D+. Mr. Dave Koski stated he is the Project Engineer who did the traffic study. He stated Mr. Robertson summarized the study pretty well. They wanted to test the worst case so they assumed and know that the primary entry and exit movement into a center like this occurs during the P.M. peak hour, 4:30 - 5:30 p.m. They are finding the traffic into these retail centers is primarily from people doing their shopping on their trip from work to home. They looked at the P.M. peak hour on an average weekday. They surveyed OUSING i REDEVELOPMENT AIITHORITY MTQ.. APRZL 18. 1990 - PAGE 9 a number of shopping centers of this size and larger. They know what the entry and exit patterns are and the numbers. The Institution of Traffic Engineers also gathers the results of studies from around the country, and they publish a document that lists the range of travel patterns for shopping centers for peak hours, Saturdays, and Sundays, etc. Mr. Koski stated they then calculated what they thought would be the traffic generation and the entry and exit volumes for this center. They also assumed that all that traffic' would be new traffic on Mississippi Street and at the intersection of University and Mississippi. That is not the case. Probably about 50% of the traffic that is entering and exiting this center is already on Mississippi and University passing. But, they assumed it would be 100% new traffic. They also wanted to find out just what the current level of traffic is on University and Mississippi. They conducted a traffic count last week between the hours of 3:30 p.m. - 6:30 p.m. and extracted from that the peak traffic period of time. Their conclusion is that the traffic that will be entering and exiting the shopping center would not have a significant impact on the current traffic capacity and level of service and traffic patterns they have at the intersection right now, with the existing roadway configuration and the geometric design that exists right now. Mr. Koski stated the driveway entry into the site easterly on Mississippi from University is back far enough so that the turning movements into and out of the site are not going to influence the capacity of the intersection. They specifically looked at the back -up that occurs for westerly bound Mississippi and University during peak hours. This is a theoretical calculation based on the actual traffic movement done with a computer. The back -up showed approximately 280 feet and the driveway is 350 feet, so the back- up will not come past the driveway so the driveway will always be open to either exiting traffic or eastbound Mississippi traffic that wants to turn left into the site. Mr. Koski stated that similarly the westbound Mississippi traffic has enough gaps that the eastbound left -turn into the site can occur at frequent enough intervals to not back up on eastbound Mississippi traffic. Mr. Koski stated they also looked at the impact on the intersection at Mississippi and 5th Street. Their calculations show that the project will not have an impact on traffic exiting east on Mississippi from 5th Street. Mr. Koski stated the overall conclusion is that with the existing geometrics, the implementation of the development will operate satisfactorily and will not have a significant impact on the traffic on Mississippi or the intersection of University and Mississippi. HOUSXNG i REDEVELOPMENT AUTHORITY MTG., APRIL 181990 - PAGE 10 Mr. Prairie asked about the improvement to Mississippi and the added traffic lane. Mr. Robertson stated the major conclusion from the traffic study is that it is not crucial that the intersection be improved before this development goes in. That is a very critical finding. Anoka County could plan the improvements for 1991. Mr. 'Commers stated Anoka County is not going to improve the east side of Mississippi until they improve the west side. Mr. Meyer stated he realized that this development is going to be highly dependent upon peak hour traffic. However, it just seems they will be doing a weaving across traffic - -a right turn off University eastbound onto Mississippi and then a left turn into the site crossing the heavy westbound traffic on Mississippi. He understands the computer analysis and the traffic counts, etc., but is there any way to measure what happens when cars are waiting for the chance to get across the street to a very narrow entrance with traffic coming out to go either eastbound or westbound on Mississippi. How does this weaving across traffic upset the waiting times, the stacking of cars? It just seemed that a computer cannot measure these kinds of things. If they have a development that is highly dependent upon traffic where the traffic is awkward or bad, it is a prescription for failure of the center. --, That goes beyond traffic, but it is an important part of trying to judge where the center might go. Mr. Koski stated Mr. Meyer raised a good point. There is a rating for traffic capacity and level of service (ranges from A -F). Obviously, level D is less than perfect. It is considered a satisfactory level of operation and really denotes something where the traffic is clearing with each intersection cycle phase, but it is also below C which is considered average. Level D really means that everything is working fine, but that some kind of disturbance (stalled vehicle, snow) can cause some periodic congestion for awhile. When something like what Mr. Meyer described happens, that can cause it to break down for a moment and cause some problems. Obviously, when you put turning movements into and out of a driveway, there is more conflict. However, from their study, their conclusion is that there is enough time and distance to make the whole operation satisfactory. Mr. Koski stated traffic signal timing, along with the improvements proposed by the County, will help the traffic situation a lot more. Mr. Robertson stated that with the proposal, the driveway to the site is moved about 75 -100 feet further east away from the intersection and that definitely improves the level of service, no matter what else happens on Mississippi. ROUSING S REDEVELOPMENT AUTHORITY MTG., APRIL IS, 1990 - PAGE 11 Mr. Robertson stated staff also asked Barton - Aschman to give an opinion on the worst case scenario; for example, a 200,000 sq. ft. office building on the southwest quadrant. It is Mr. Koski Is opinion that it might require two left turn lanes on eastbound Mississippi at the intersection. Mr. John Flora, Public Works Director, said that could be handled with the existing lane configuration. Mr. Robertson stated that made him more confident that the project would not interfere with the HRA's options on the southwest quadrant. Mr. Robertson stated that, based on these findings, staff recommends the HRA consider the following: 1. Approval of this specific development plan to the Planning Commission for a public hearing for rezoning of the parcel to S -2. 2. Concept approval for preparation of a $300,000 (approximate) pay -as- you -go redevelopment agreement to be fine -tuned and brought back to the HRA at a later meeting. 3. Recommend staff proceed with the process to give notice for public hearing to expand the TIF district from the existing 10,000 Auto Parts site to include the two additional single family houses immediately to the east. NOTION by Mr. Rasmussen, seconded by Ms. Schnabel, to: 1. Approve this specific development plan to the Planning Commission for a public hearing for rezoning of the parcel to S -2. 2. Give concept approval for preparation of a $300,000 (approximate) pay -as- you -go redevelopment agreement to be fine -tuned and brought back to the HRA at a later meeting. 3. Recommend staff proceed with the process to give notice for public hearing to expand the TIF district from the existing 10,000 Auto Parts site to include the two additional single family houses immediately to the east. UPON A VOICE VOTE, FOUR MEMBERS VOTING AYE, MEYER VOTING NAY, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED BY A VOTE OF 4 -1. Mr. Commers stated the HRA is looking forward to working with UCD; however, he hoped the developers would keep in mind the issues and �.� concerns addressed by the HRA members. This is part of their Center City project and it is important to the HRA. HOUSING & REDEVELOPMENT AUTHORITY MTG., APRIL 18. 1990 - PAGE 12 (Ms. Schnabel left the meeting at 7:50 p.m.) 2. CONTRACT WITH BARTON - ASCHMAN ASSOCIATES FOR TRAFFIC STUDY TO BE PAID FOR BY UCD: Mr. Robertson stated the traffic study has already been paid for by UCD. MOTION by Mr. Prairie, seconded by Mr. Rasmussen, to approve the contract with Barton - Aschman Associates for a traffic study to be paid for by UCD. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. CLAIMS (2000- 2009): OTION by Mr. Rasmussen, seconded by Mr. Prairie, to approve the check register as submitted. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. INFORMATION ITEMS: 4. 57TH PLACE STATUS: Mr. Robertson stated a signed agreement is imminent between the MPCA and Ashland Oil. Staff has now proceeded to contact Winfield Development to ask them for a prelease agreement with their anchor tenant, Crosstown Bank. Apparently, Crosstown Bank is now in a better to proceed than they were a year ago. Upon receiving and verifying the surety of that prelease agreement, staff will look at the outline of the development agreement presented to the HRA in November 1988 and bring back a status report to the HRA. He stated Dave Newman feels very strongly that staff should examine the liability exposure on the ground contamination before proceeding any further on acquisition of the site. 5. TCF AND SKYWOOD MALL IMPROVEMENTS: Mr. Robertson stated staff and Councilmember Steve Billings met with representatives of TCF and the receivers and bondholders for Skywood Mall. They believe they have an outline of an agreement whereby satisfactory traffic access can be achieved without any further HRA participation. If no action is possible, the HRA might be asked to consider doing some improvements which was part of the original plan for that district. He stated staff will keep the HRA informed. HOUSING is REDEVELOPMENT AUTHORITY MTG.. APRIL 18, 1990 - PAGE 13 Mr. Burns stated that if the City does not get the cooperation from the Skywood Mall- related participants in this discussion, including Marquette Bank, the HRA might be asked to condemn the small strip of land needed to construct the improvements. Hopefully, that will not happen, but is something the HRA should be aware of. 6. COMMENTS ON PROPOSED 1990 -91 OBJECTIVES AND ACTIVITIES: Mr. Robertson stated that at the last meeting, he had submitted the proposed objectives and activities and had asked for comments from the HRA members. He stated he has received no comments. Mr. Commers stated he did have one comment he would like to bring up that can be discussed on the agenda at the next meeting. He stated that at one time the HRA talked about some long range plans which might address some of the issues Mr. Meyer has raised. Mr. Robertson stated staff is updating the Comprehensive Plan this year as part of the work program for 1990. Staff can give the HRA members an outline of that Plan within a few months, so the HRA members can see what will be covered and the general concept direction in which they are moving. ADJOURNMENT: MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to adjourn the meeting. Upon a voice vote, all voting aye, Chairperson commers declared the April 18, 1990, Housing and Redevelopment Authority meeting adjourned at 8:10 P.M. Res ectfully s mitted, TLa tyA4 Saba Recording Secretary ACTION ITEMS OUSNG and REDEVELOPMENT AUTHORITY 1 COMMISSION MEMBERS: LAINIENCE COMMERS, CHAPMAN WANE PRAW n1aMA SCMAEEL WALTER RASMUSSEN JOHN MEYM CITY OF FRIDLEY DATE: May 2, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Acquisition of Rice Plaza Center As a follow-up 'to the April HRA meeting directives, staff has engaged Dennis Taylor, MAI, to proceed with a preliminary appraisal of the property and to furnish HRA counsel David Newman with a value. Preliminary indications are that the MAI appraisal is consistent with estimated values of the property from 1986. Mr. Newman is now in the process of negotiating a potential purchase for the Rice Plaza Center property based on the preliminary appraisal. The complete written appraisal will follow if necessary for condemnation proceedings. Mr. Newman will provide an update in the packet and at the May 10th HRA meeting. JR:ls M -90 -303 EXECUTIVE DIRECTOR: JOCK ROBERTSON 4431 UNIVERSITY AVE. MI 2) 571 -3450 f111DLEY9 NN 55432 EXT. 117 OWING and REDEVELOPMENT AUTHORITY 2 COMMISSION MEMBERS: LAWaENCE COMMERS, cMAaMAN MIME PRAT E Y0011111A SCMNASEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: May 2, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: 1990 -91 Objectives and Activities As part of the 1991 budget preparation process, each city department prepares a statement of objectives and activities which the proposed budget would support. In the process of identifying these objectives and activities to accomplish them, several were moved from 1991 to a start in 1990. The following objectives are included in this combined 1990 -91 objectives and activities' summary: A. Develop and test a tax increment financing assisted rehabilitation program for single and multi - family housing as part of a comprehensive strategy to improve housing condition. Move from 1991 to 1990. B. Help developer resolve Lake Pointe development agreement for a 1991 construction start. This was moved from 1990 to 1991 based on the projected market conditions for 1990. C. Conclude development agreement for 1991 construction start on the southwest quadrant of University Avenue and Mississippi Street. This was moved from early 1991 to mid -1990. D. Develop and implement a business retention program. Moved from early 1991 to mid -1990. E. If Onan Corporation is prepared to proceed, conclude a development agreement for a 1991 construction start in TIF District No. 9 starting in February 1991. The attached sheets indicate the detailed activities and performance measures required to accomplish these objectives. Staff recommends that HRA adopt these objectives and activities to be incorporated into the 1990 and 1991 work programs and budget. JR:Is M -90 -304 EXECUTIVE DIRECTOR: JOCK ROBERTSON •431 UNIVERSITY AVE. (d 12) 1171 -34110 FRIDLEY9 SIN 55432 EXT. 117 ll�*Il w H H H H H 0 H H U W 0 rq o� o� O ON o� m W C7 a C >, P4 Goc 00 r� ri a) a) Ab >� a R� O 9 U -O O x PQ o H H DD H H W U d • d �a 1 N H N N N z 0 H E 0 O w z z z r-1 01 H H H O 01 01 r-4 i b a) bz � W J[ N vi U 4J 0 .. ro_aNi o�a0 con 30a) k 14 04 z ��h� 4) OcdUVx .. U to cd y 4 NO d cdIM 14 E-1 O 90 9 V , 4J +► G ON CA 3 ON R -r-I -rc I~ r-i 9 •ri N •,i p b a) $4 W -rl V - 4 U )•c g�� >a a ��-4 - -rg4)9 0 w 0 14 $4 4) 0 $4 4) O •rj a cnUa aa�h oQ•rINUa) 4J H9:3Na)0 NOO a) Vro4) -UU N 3 (0 W %.-rj -i.0 toH H HVb tP N O+O R N O E-4 O+ Id O A R (1) m "A to -rl a) b4-) N H b A4-) b -H a) .'� 4J }l > A b 0) U O O N a) H V U H >1 0 (L)G) � IN -I r�i 444 Q a) E+ N 9 •r+ ri 0 14 V N O ON N (d O s~ U 4) Id A -ri N a a a, 4-) R -ra 4-1 O CO p q -r1 0 o ra C aJ CO 4-) >4 �'g41 >-r4r+ cs •dw 4)iwr-i U o� >1 IV -N� .. a $4 -ra V -r♦ m o rd a) 4 k 0 c o a) 4-) �d 2s a) 4J $4 O+ M a) g E-+ a) d ON 44 w O O V a) o +r-r♦ fa U 4J O 0 4J a o a) U -rl > 14 r I •ri a) o r. > a pq U r-c a) N -rI a) V > O a A 4J b U >i r-4 14 a) a) $4 -rc N ri 4-) Id ON -r1 H Id •rl H ca O d .0 •n > U N a)•+ N O V b N O b >.O ON O A a) I~ N W •r-I Id -P -rl U G to • R • a) 4j -rI 0 GHId043 aNN Nb (nM0.0 2 -A l� rn w H E� H H E� U W +d H U W O r-I ON O% H O a• a, R >+ 0 O W a O O r4 H O! O) Ab >� a 1T O O to uo x E.. HH U) H WH L] In N W C9 a E E-4 ' W U b b N Om FA z O H Ei U O • w CIQ ° ° z z r♦ 01 H� H ,Z O a o� O� r♦ d! W V A O 1 I R Z 0 R1 to 0 U � A b+ V ?� CT -4 V U 9V N +i to (1) V 91 � W to '9 H CL Q p ON V U +� •� 0% A O b PWi U OO! -rOl Q -� 1 G1 N >i U � A CO O 9 9 FA -4 A $$4 ttQ - ar 9r Id w > 4) O 4) V b A -H H V m r-4 0o >. V H ri p. V m -rl .L.'• V m b 0) b -rl 01 V -4 (~ Ea O a m'0 V -rj (d A R A r-4 -.i rq O H m O b o 3 0! -r+ O -H U .,.i > 0)r4ON 1 0 0) w mw4) to 0 A O H $4 0) Ol 01 Uri to -r1 Ol Id -H 'C3 "1 4) ri A Ol 4-) $4 .0 m (1) G m $4 U 1-I Vb00) OVMWV bO1s a Ol$4 A T% b 4)l4 E) 9 Oar m (D (a P4 O$4 axOOm ,c abed w -i 90 $4 > $4 td • Vb O A+) b •• r-1Vw V N rortaA>. - r11~Htom OR 4) m 0144 b 3 ed 0) �- O O - > -9 � -al }4) � EH '0 10 H U V 'Od a 0 O -H Id $4 ON 44 N 0 4) 4) . -°q -H r1 � k�Oa 0)i a0)44)V -4 X4)91 1 o>1 Z0104) -1 •n ri 9 $4 C) V A M (L) V r-1 0) V V a4.) Q O A a, 01E U •Owaoa -r •0)$4r. a •oa0 O x ed oc ri ON H- m ri N> b -H O cq U O •� 2 -B w N E-+ H H E� U El i H E4 U W 0 r-I ON Cm r♦ 0 o� o, r•a Q >r aai9 G 41 41 � d as 00 r♦ ra a) a) D b 4a -rl %8 U 0 O x z 0 H H 00 M w a 2 -C E-1 b b �a A 4) H 0 0 N z O H E Ea N O U a) O W 0 z z r-1 E4 H H zo OC% C% o wo 0 0% O-I W GU! U to .�-� O . 00 0 CW.09 O >1 °f..9v a 3 k 0 •r♦ w O $4 Id 14 to -rl .. �, o+ r4 Oa-►V 0 MH4-J U .0k to G>1�nGU� R3 0 U -a I O -rl N U to O baaUv0r.`4 G) 0 V. Q) a � rt W 0) 44 Q) -H to CO tol•r1:1w3E- x in 4) 0 4) edd > $4 41 - a ui a) v to a b b two >, -rl m r-4 O m W -rl 4J -rl V a1 4-) a R 0 to > N w A 3 9$4.0 V to 3 -ri a •r1 -rl to 4) 9 ON E-t -rl tU to a) 4) O 9 A to -r1 $i +3 (1) r-4 -ri G H > .0 ol V > •, I 0 a)0 k -r13 di O V k N 0U0a)to -H 4: N A -r-1 4) to -r1 M$4 pi Ua)G)04 a 0 > -ri Vbto Ea $ � a $4 O r♦ to -H to v O b to U b ON O V d r-I 01 Q to to • a 0 G) •rl a a' td $4 G) N V G) 0) C'+ rti •rl >+ V 44 X \ M .. A� a.�W G0) 4) 44 °wz •• 0 $4 � Ob M U N b Q U to u •• b $i V 0 'O to O •ri O 0 •ri G) -r1 a) -H > 0 a) O k rZ G) a) a 3 -ri CO k w H -rl .J 0144 b to > d W b4-) cd -r1 b 0 iJ 044 H v 0 a•rl )-I A m •rl b 4.) O V -ri )-1 V CO to W 0 U -rl 01000v0k V 04-)N00V -H E) P4 G)k+J W > O r•1 G) 4-) C. G) U r-I .. k 0 0 > a) 4) 0 to to •� -r1 z a, atd41 •rl a a) 0 d Ab O a) -ri o �+ z �'� o N °O 0 4) U 0 O u G>1 X0.1 O r-I-I -I A -rl >� a �bb O U4)i�to 0 NUO+Wa4) VV2 0 to W H E4 H H U rail lw W a W U WM D b H E4 U W O A d A '14' 4)4J cn r.4 •rq O 1 � O O O 04 � O ON O� 00 r4 r-I z cb O 4a H :3 ON s~ U a O x E4 z•• o H WH QG W U b b b A A d A '14' H O O O O z O H E 0 O R W z z z z ON N-+ rr E-I H z0 p a� ON I ON JM01 M )0 - a 0r.d 310-I>r µ �b� F�U> CV 04J Itz° ami a rq W to4))0 w(D4J 4)3- •- A�" .�>w U 4)91 1 CA r1 4)i + 41 9-1 � 4to V V IA .0 A )H .. 1~ •r♦ O bto to bum ��AN bola a + 09 V�4 ONwb -vo °Uaa a0 cab (0w°i n Id can � b a� �rl ro0 �s~0 .x � 4) w k M r-I O a 0 v m ri -r♦ H 0 4) 0 -r-I -H a O a ro Ea UN U+)O O O >N0 O4J I O d t> N • � 0� 4) o H OUr U4)0 a>i a+)r� r.ONk U � -4 W m r-I a1 b P y 0 0 -)) ON 14 NOwV N V-H O O v � a •• r-1 O H a -H N O V b 4) 1 •• m A Id O U b to • •• R 140 N O r-I O G) b G) r-I 4) tV •r1 4 41 ld ON G) v :1 ri H -rI 94.) >1 m w w O V G > m C1 -H r. w .0 E4 +J 0 CO w > 4) $4 O a) -r♦ a m H iJ 4) m to U -rI k -rI -H " ON oil -p O a) � •r1 > m k W > W O +J b 1.1 O Id O O U r-I R > C O tic LA -0-1 H L; m z 4) G) d) •rI -rl H U a d U9 -r1 W 4-) d4) 9b p •n >mb V O U O•dm !~ •0) A 410w U 00+) 4 ch U -1-1 0 x to In (a O Im A ON a m U •r♦ 2 -D ll�, rn w H P H H Ei A W� H W O H ON Im H 0 o� 0% H A� 00 H H a) a) Oro 4) >� a A b� -C U m O x E4 Z •• w H H In W > QQ H 2 -E 0g 4) 4) H O 0 m m z O H H 0 O U X C G W O O z z H G1 En M E-i H H ] 01 M H I I 41 I e-i W G� wo O U 3wON +) !✓s rl m 4) Itnd0% 4J 4)CA a4) m 4)i( N W •dH -HAS 9 mb'O H ro 4) b 4) 4J >4 U 4) U 4) to 0 .. 0 h 4 h m m m� A -N ) b m - ami2! �a0iG3.O o 0 W OH 0.44 4) v H N AG A "4 m 0 A O+ 4) H -rl I 04 a Z� AV ulNPiwb rm-I >I R U G Z W O -H N U Z 4)� 0 4) W b+ V 0 v 0 4) bl 4) H H 944J O C b 0 to - H >r H C > go N b� 4) -A 44 19 $4 4) m $4 V -A m 0A4J •A •rl H b+ O 0:30kr-gm ca r. H O b V H 0 V 0 4) •0 1+ :1 U !� R = Id -rl U W - O !~ UN a a b m.0 m W 4) 4) k' m•rl b O \ 4)VH OA N -r4A m $t O cn • • >1 >v .0 H (V 14 4-) -H 00 4) a U M W 4) 0 -H m 0 M A 4) -m .Q H 4) -rl H $4 W 4) Cn C N O V b H -rq v a ro o m .d -H m -rl W 14 b 0 I~ H }a 9: -H 4)km0 0 mV 04) 4)bb U -rl 4) M N a 4) (0 V CO 4) -rl .0 .0 V W > '0W 4)a R14 (13 4)9ktoV URW •rl H 9 -H bl H -H O 0 M O W • -P $4 4)m0 9to-M 0tom O 0 0 •.C:3)4 cd0kd0 u 4 N W M4)A a 'W Woo W � 4J u1 b m 4) 2 -E lll"�, ll�, w w H H H H W Al I 44S r H E U W 01 O rn o► n� b0 O� U U 1:1 01 O O a� a� Gb 41 4J -rI � c � as 0 •N r. U 0O x z 0 H H cc w C7 a EE W U b b b H N N N z O H E 0 O U w z z z ri 01 EH H O M r-I • 0 0 f 0 1 � U w w �+•� a�a� z '•- -H �-� -4-4 9 FA `ob1 440) Ra >3440 .. d4)AN O 'CfU 'droll W O Q r-i 4) W -rl 9 4! N -1 r-1 PG 01 4-) r♦ k ON k It N Ol d W a 00H rn(d44MH ) td U d to MU$4 UU Q4 U41 Ca H 044)0NO > - r14)+IQ as �Oa 4! H V 09 O w rt•,.I O b > O U 04 b U $4 $4 91 EHE r-I-I c O H01 -ri •• vdr-I -i - NO V � U 4' 0) � a� > � 'd (1) 2C O 41 W 44 4) +) I~ H > 41 $4 k "A O }I As U V � CU k W 4 • --1 � -4 R'. 1T ZT 1 W U 91441 m0% > 4)9N k0to 4) ° °� z k O n 44) 0 r � -H Fa 'd A W f-1 r-1 41 O O U • V C G 5 O• O H a u 0 -rI z 4 9-4 c� to M go 2 -F s ll�l KI %0O D 16- - F W {IL • U m W U >O s� ) U J w °o N U) U Zz N J U� f0 ¢¢ LL wL) �U u� ¢¢:) ¢Do UWU w¢¢ jow 2 vi N co O N � J .Q •r F m0 Z F � � a_ z In v Cl) C7Z C z� W O U = .r IIIINtld z ? `0 �- Q� m J J LLJ m Q = J d N r �llli�l•A n � z O ° I- Ills } H F- vJ 0J �W m0 ..gyp m in O IL ¢ IL i� a o a W) W U 1 ¢ > K O o In V(V o n N Q' ¢ tZ a V d o i O O O H %0 �0 W U) -- �. z to •� _.l Z) G j z .f ¢ N w 0 O } a I ° CU ~ w N cc z W p v W E O 0 0 0 7 } Zj ir J J W ° zO 6-4 w )f+ Al w C ►j Q ILL , p U. a '1 ft r OD o Q O M U N I� U) m 0 Q I iw (1J KI %0O D 16- - F W {IL • U m W U >O s� ) U J w U) Zz =w U� ¢¢ wL) �U O� ¢¢:) ¢Do UWU w¢¢ jow 2 vi .`i to W Z co O N �Oww F m0 W J J Cl) C7Z = O U = .r ZUv aZp �- Q� m J J LLJ m Q = J d w oa tv OFAW�e y!' "OW y low #A 'awl Of AM W- 5 On TOTAL h. c t . ... .. a ... _ ll+ f 77 4 A, t , F? S 4 . t 4" 1 7 ti. ti5 - i SUMMARY: `. original Contract Amount $32,851.N I Contract Additions .' E8.8i1 Contract Deductions $2.81 Revised Contract Amount $32,858.@8: i Value Colleted To Date $4,692.86 Amount Retained To Date (51) $234.64 Less Amount Paid Previously $8.88 AMOUNT DUE THIS ESTIMATE $4,458.22 CERTIFICATE OF THE CONTRACTOR i hereby certify that the mark performed and the materials Supplied to date under the terms of the contract for this project, and al thari:ed changes thereto, have an actual value under the contract of the amounts`shaMn on this estimate ( the inal quantities on the final estimate are correct), and that this estimate is just and correct and no pa Du his Esti "has received, .1m* � ___ el Date Contractor utharezed resentative (Title) CERTIFICATE OF THE ENGINEER I hereby certify that' 1 have prepared or examined this estimate, and that the contractor is entitled to payment of this ' estimate under the contract for reference project. CITY OF FRIDLEY, INSPECTOR ey Date c Checked By _ _ -- Respectfully Submitted, S. F1ora,P.E. Public Mocks Director r"�PPRPASEI "AS RPASE2'A6P RPASE3`A6PP ,1*1, CLAIMS (AT MEETING) 5 INFORMATION ITEMS n OUSNG and REDEVELOPMENT AUTHORITY COMMISSION MEMBERS: LAWRENCE COMMERS, CHAPMAN MANE PRAM VIR(iMA WMNASEL WALTER RASMUSSEN JOHN MEYER ITY OF FRIDLEY DATE: May 2, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: 1990 Second Quarter Work Tasks Here is an outline of our work tasks through June and an attached 1990 summary chart based on earlier City Council priorities. Please give me your suggestions. HRA /Economic Development 1. Develop a conceptual University Avenue south gateway plan for vicinity of 57th Avenue intersection with and without LRT. Schematics to include possible expansion phases, alternative land uses, and right -of -way landscaping. 2. Prepare TIF housing rehabilitation program design for review by HRA and City Council. 3. Based on final legislative action, draft TIF policy guidelines. 4. Respond to potential developer's needs for northeast and southwest quadrant. 5. Develop a business retention program concept. Test by visiting at least five (5) different businesses. 6. Research and develop proposal to turn back Johnson Printing or some other portion of a TIF district back on the tax rolls. 7. Complete turnback of surplus property on Hackmann Avenue to Duane Flaten. 8. Publish 1990 annual report. 9. Set up TIF District No. 11 for expanded 10, 000 Auto Parts site if still allowed by state law. JR:ls M -90 -311 EXECUTIVE DIRECTOR: JOCK ROSERTSON $431 UNIVERSITY AVE. (0 12) 571 -3450 FRIDLEY, NN 55432 EXT. 117 O a a nl h a 0o u� 3 O er a nl SrA a x � 7 h w 0@4 h •A+ O � ac A O o b e O� b O it +•i u t a C a ei n c ce . 4 be 0 .•i m� it a c O A �+ h 4HV• • Oac N ., b 0 .. > Aj . yea ., . -4 1c0 it • f./ W• 14 » Y • y 1•l u P4 boa is O • • O 41 .� .� . O ra Y +� A 0 v e a M • •+ . c a• 0. a.0 .O+ O I q 1 .•i sl H 1 m a e a 1 we X O Go ., o� ++ o cM > +o O Iva M �+ P4 a a '+ Of +Oi pq • o Aj of v C O b O MW •04 u0 il• as .•N A • N 7 +i O j c Ir a C 'OO 'O C U-4 y V 7 cc 7 v v c o v M b y 'c O 000 3� P40 G70 O mw >o0 wbo i .'g4 41 EE a�•1 a o0 1° !C SrA x h 7 h q h � ac A O o b e O� b O it O a C a ei n p' ce . 4 > • m� it a c O A �+ h • N ., b 0 .. > Aj . ., . -4 1c0 it • O C W• 14 » Y • y 1•l u P4 • O • • O 41 .� .� . O M 9 q•q Y +� A 0 v 9 • a• 0. a.0 .O+ O I q 1 .•i sl H 1 e a we o� �+ P4 a a pq • o Aj of v SrA OWING and REDEVELOPMENT AUTHORITY 7 COMMISSION MEMBERS: LAWTV34CE COMME1RS. CMARMAN DUA1E P RARE AROMA SCHNASEL WALTER RASMUSSEN JOHN MEYM CITY OF FRIDLEY DATE: May 2, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Updated Outline of HRA Project Budget for 1990 We have updated the "maximum activity" project budget for the 1990 fiscal year originally dated January 4, 1990. This maximum activity budget adds likely new projects to those projects that are currently on hold which could be revived for HRA action. It is desirable for the HRA to assign priorities to these projects in order to get maximum utility from our limited financial resources. During the second quarter, staff will be drafting proposed TIF policy guidelines for evaluating these projects and new proposals as they are submitted. The current schedule calls for the City Council and HRA to review the drafts in June and July. JR:ls M -90 -307 EXECUTIVE DIRECTOR: JOCK ROBERTSON •431 UNIVERSITY AVE. (*12) 671 -3460 FRIOLETv UN 66432 EXT. 117 Pro ect OUTLINE OF 1990 HRA BUDGET Assistance Type Lake Pointe 1. Buy out of old developer 2. Buy out of old developer 3. Lake Pointe Drive realignment R/W * 4. Other services & charges including maintenance Center City * Southwest Quadrant 1. Developer reimbursement 2. Revenue note to developer 3. Contribution from outside district 4. Other services & charges Expense $5,600,000 $1,000,000 $ 190,000 $ 60,000 $2,215,350 (Boisclair) $1,952,100 ( Clark) $ 136,364 (Boisclair) $ 110,491 (Clark) $1,449,480 (Boisclair) $ 5,000 7 -A May 2, 1990 Page 1 Revenue Source Sale to new developer Escrow Revolving fund Revolving fund Existing $1,600,000 bond proceeds Balance by new bond sale Revenue note (pay -as- you -go ?) Revolving fund or developer fees Northeast 1. 17% developer reim- $270,000(UCD) Existing $1,600,000 Quadrant bursement at sub- bond proceeds stantial completion Balance by new bond sale (Note: Alternative would be a 9.3% $300,000 pay -as- you-go revenue note paid as taxes are received starting in 1991 or 1992.) 2. Other services & $ 4,000 Existing $1,600,000 charges bond proceeds or developer fees * most likely 7 -B May 2, 1990 '"� OUTLINE OF 1990 HRA BUDGET Page 2 Project Assistance Tyne Expense Revenue Source Center City (cont.) Plaza Ramp * 1. HRA 1/2 of maintenance $ 8,000 Existing $1,600,000 bond & $9,600 rent proceeds * 2. Electronic security $ 11,000 Existing $1,600,000 system bond & $9,600 rent proceeds 3. Anti- grafitti sealer $ 17,000 Existing $1,600,000 bond & $9,600 rent proceeds 4. 3 extra upper level $ 6,340 Existing $1,600,000 lights bond & $9,600 rent proceeds Plaza 1. Replacement trees $ 9,000 Existing $1,600,000 Landscaping bond & $9,600 rent proceeds 2. Replacement grates $ 2,500 Existing $1,600,000 bond & $9,600 rent proceeds 57th Place 1. Net acquisition of $315,000 New redevelopment site (Winfield) bond & $2,500 fee paid (Note: The Developer agrees to pay any additional costs above this figure, and HRA agrees to reimburse if less.) 2. Second Mortgage $100,000 $400,000 revolving fund 3. Other services & $ 2,200 Receivable $17,500 charges developer fee 4. Relocating streets & $150,000 10 year special utilities assessment Moore Lake * Hillwind 1. Developer $ 109,500 $400,000 revolving "Mice Bldg. reimbursement at fund Certificate of Occupancy * most likely 7 -C May 2, 1990 OUTLINE OF 1990 HRA BUDGET Page 3 ^,o eat Assistance Tyke Exvense Revenue Source Moore Lake (cont.) * Moore Lake Commons 1. N.W. Racquet Club $ 120,000 Reserved fund reimbursement T.H. 65 - 1. Construction of $1,400,000 $11,500,000 bond Lake Pointe improvements issue to East Moore Lake Drive 2. Other services & $ 72,000 $11,500,000 bond charges issue Water Quality 1. 3- season decorative $ 100,000 $11,500,000 bond aerator issue Potential 1. Pay -as- you -go $ 100,000 Development TIF Commercial developer or Residential reimbursement Project on Old Central Avenue Old Central /Onan $20 million, 1. Land write -down for $ 200,000 New bond proceeds 500,000 sq. ft. 35 acre site (internal Onan warehouse/ review scheduled for office complex Dec. 11, 1989) (Note: Other options would probably not come on line in this year.) 2. Other services $ 3,000 New bond proceeds Junkyards redevelopment (Note: Funding dependent on Onan project.) Old Central Boulevards & bikeway /walkway Avenue (Note: Funding dependent on Onan project.) North Area /University * Vantage 1. Developer reimburse- $ 50,000 $400,000 revolving Phase II ment for soil correction fund 2. Other services $ 500 $400,000 revolving fund * most likely 7 -D May 2, 1990 OUTLINE OF 1990 HRA BUDGET Page 4 Pro ect Assistance Type Expense Revenue Source North Areal University (cont.) Osborne Road 1. 2nd mortgage (Rosewood $200,000 New bond issue Center Corp.) (Note: Approved by HRA in 1986 and then put on hold by developer. Project is apparently dead.) 2. Other services $ 1,500 New bond issue * Paschke 1. Storm water maintenance $ 10,000 Escrow fund Area Wide University 1. Phase I improvements $700,000 $11,500,000 bond Ave. Corridor (no LRT) issue 2. Other services $ 5,000 $11,500,000 bond issue SBF /Osborne 1. Land write -down grai Crossings (Note: More likely go revenue note for 1992 through 1994. on hold.) 2. Other services it $200,000 New bond issue alternative is a pay- as -you- $250,000 to be paid from Developer has put project $ 2,000 New bond issue Pro 1. Land write -down grant $ 50,000 $400,000 revolving Engineering fund or new bond issue 2. 1/2 storm sewer installation $ 13,000 (Note: Alternative would be a pay -as- you -go revenue note for $70,000 to be paid from 1992 through 1994.) 3. Other services $ 2,000 $400,000 revolving fund or new bond issue (Note: Pro Engineering bought existing building in New Hope early in April 1990. Funds could be applied to a new target of opportunity.) * most likely 7 -E May 2, 1990 OUTLINE OF 1990 KRA BUDGET Page 5 Project Assistance =9 Expense Revenue Source Area Wide (cont.) Northco 1. Soil correction grant $ 60,000 $400,000 revolving fund or new bond issue * (Note: Alternative would be a pay -as- you -go revenue note for $70,000 to be paid from 1992 through 1995.) 2. Other services $ 2,000 $400,000 revolving fund or new bond issue Metal -Tek 1. Soil correction or $100,000 $400,000 revolving land assembly grant. fund or new bond Replacement for Metal -Tek issue which is dead. (Note: Project is apparently dead. If revived, an alternative would be a pay -as- you -go revenue note for $80,000 to be paid from 1992 through 1995.) 2. Other services $ 1,000 $400,000 revolving fund or new bond issue * Administra- 1. Staff time $149,807 $149,807 current tive Services - City Manager 8% increment - Ex. Director 25% - Finance 33% - Public Works 24% - Other staff 10% 2. Misc. supplies $ 5,000 $5,000 current increment 3. Contract services $ 3,000 $3,000 current increment * most likely I OUSNG and REDEVELOPMENT AUTHORITY COMMISSION MEMBERS: LAWRENCE COMMERS, CHAPMAN MIME PRAIRIE VIRGINIA SCHNASEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: May 2, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Electric Bill from HRA Meeting After reviewing the check register at their last meeting, the HRA requested more information from Rick Pribyl on the electric bill that was within the City of Fridley billing. The breakdown of the March and April electric bills of $114.97 is as follows: 1. $107.91 is for automatic protective lighting (4 units) at 700 Lake Pointe Drive. 2. $7.06 is for a sprinkler control box for Lake Pointe Develop- ment located at 5660 Quincy Street N.E. This unit operates only during the maintenance season. The charge is a base rate for the meter. JR:ls M -90 -308 EXECUTIVE DIRECTOR: JOCK ROSERTSON 0431 UNIVERSITY AVE. (012) 571 -3450 FRIDLEY* UN 55432 EXT. 117 r� IOUSNG and REDEVELOPMENT AUTHORITY 9 COMMISSION MEMBERS: LAN►IENCE COMMERS, CHAMMAN WANE PRATE r110MA SCHNABEL WALTER RASMUSSEN JOHN MEYM CITY OF FRIDLEY DATE: May 2, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA Barbara Dacy, Planning Coordinator SUBJECT: The Comprehensive Plan Chapter Outlines and Process Schedule We have prepared preliminary outlines for each of the proposed chapters in the Comprehensive Plan and have developed a schedule whereby the proposed draft of each chapter is forwarded on a regular basis to the City Council for its preliminary review (see packet). The drafts will then be reviewed by the Commissions before being forwarded to the HRA for recommendations and to the City Council for action. It is intended that the City Council review the draft chapters in the conference sessions after the regular City Council meetings. In the cover memorandum for each of the chapters, we will outline the policies which the Metropolitan Council is requiring communities to implement as opposed to policies created by the City. Because of the other issues that the City Council must consider on a regular basis, it is intended that these reviews concentrate on the overall policy direction rather than details on sentence structure, for example. We have requested the City Council to provide direction on the proposed schedule as well as any comments on the chapter outlines. The outlines are merely an initial guide for our research, and other issues may arise as we progress. JR /BD:ls M -90 -314 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 571 -3450 FRIDLEY, EN 55432 EXT. 1 17 OUSNG and REDEVELOPMENT AUTHORITY 10 COMMISSION MEMBERS: LAWRENCE COMMERS, CHARMAN MANE PRARE rROMA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: May 2, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Status of 57th Place Redevelopment Proposal We have met with representatives of Winfield Development, and all indications are that their anchor tenant is indeed interested and proceeding with the proposed project, but is waiting for the details of the PCA /Rapid Oil clean -up agreement. The agreement may be delayed further. Rob Goltz, the Project Manager for contaminated sites, has left the PCA staff, and the staff hydrologist in charge has indicated a need for additional information from Rapid Oil's consultant, Delta Environmental, before concluding the clean -up proposal. Upon review of our December 1, 1988, estimated acquisition costs, it appears as if these costs are still valid and would indicate about a $500,000 acquisition cost. I hope to have additional information about PCA's data needs for the May 10th meeting. JR:ls M -90 -310 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE- ($ 12) 671 -945 FRIDLEY, MN 55432 EXT. 117 OUSING and REDEVELOPMENT AUTHORITY 10-A COMMISSION MEMBERS: LAWRENCECOMMERS,CHAIRMAN DUANE PRARE VMGNIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY To: HRA From: Jock Robertson, Executive Director David P. Newman, Attorney Re: 57th Place Date: December 1, 1988 On November 23, 1988 a meeting was held between ourselves, Jim Casserly, Bill Fogerty and Ed Bubany. While Winfield Development did not yet have a written report from their Appraiser for the Rapid Oil site, they did indicate that they had verbally talked to the Appraiser and that it was his estimate that the value of the Rapid Oil site building and the adjacent home was approximately $200,000. Based on this most recent information it is our best estimate that the acquisition costs for this site are as follows: Vacant Lots 50,000 50,000 459,500 15,000 59,500 534,000 Based on the analysis prepared by Jim Casserly, the parties have agreed upon the following concept for financing this proposed development: 1. Upon the formal execution of a Development Agreement, Winfield will post a $20,000 Letter of Credit, or cash equivalent, less the $2,500.00 already paid. 2. It is assumed that the subject parcels will need to be acquired through condemnation. Prior to the HRA commencing the condemnation action, the Developer will post a Letter of Credit or cash equivalent in the amount of $125,000, less any amounts previously de osited. EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (0 12) 571 -3460 FRIDLEY, MN 55432 EXT. 117 Land & Building Fixtures Relocation Total Rapid Oil 141,000 15,000 156,000 Adajcent Home 59,500 59,500 J & R 115,000 15,000 20,000 150,000 Duplex 94,000 24,500 118,500 Vacant Lots 50,000 50,000 459,500 15,000 59,500 534,000 Based on the analysis prepared by Jim Casserly, the parties have agreed upon the following concept for financing this proposed development: 1. Upon the formal execution of a Development Agreement, Winfield will post a $20,000 Letter of Credit, or cash equivalent, less the $2,500.00 already paid. 2. It is assumed that the subject parcels will need to be acquired through condemnation. Prior to the HRA commencing the condemnation action, the Developer will post a Letter of Credit or cash equivalent in the amount of $125,000, less any amounts previously de osited. EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (0 12) 571 -3460 FRIDLEY, MN 55432 EXT. 117 3. After the condemnation action has been commenced, the BRA will use its statutory authority to enter upon the property for the purpose of conducting soil tests and environmental assessments. If the results of these tests are favorable then the BRA will proceed with the condemnation and issue the Quick Take Notices. However, the Developer will be required to post a Letter of Credit or cash equivalent, with the BRA before they commence the quick take process. The amount of the Letter of Credit will be the purchase price which the Developer is paying for the subject property, less any amounts previously paid and less any amount of the purchase price which is being deferred. 4. At the time of execution of the Development Agreement, the Developer will also execute an Assessment Agreement. In essence, this Assessment Agreement will require the Developer to pay taxes at the rate of $2.75 per square foot on the building. This Assessment Agreement will continue until the Tax Increment Bonds have been retired. Because of changes in the tax law, the estimated market value of the property may be adjusted. This is agreeable to the Developer as long as the effective tax rate on the building is $2.75 per square foot. 5. The Developer will guarantee the payment of taxes for the Development for a period of 3 1/2 years following completion of construction of the Development. During this period the Developer will be allowed to convey or sell the property, providing that the successor in interest meets the creditworthiness standards of the BRA. 6. It is assumed that the building will be completed by the end of 1989. If there are any delays in this construction schedule, which delays are beyond the control of the Developer, then this period will be extended. However, to the extent that the completion of construction is delayed, then the tax guarantee provided for in the preceding paragraph will also be extended by a like period of time. 7. If the building is not completed, subject to unavoidable delays, by December 31, 1989, then title to the property will revert to the BRA. The assistance which is being proposed is that of land write down. In addition to the land costs reviewed above, it is anticipated that the BRA will have the following costs: 10 -B 10 -C R Land $459,500 Fixtures $ 15,000 Relocation $ 59,500 Infra Structure $154,000 Miscellaneous Costs $ 18,000 Contingency $ 36,450 Demolition $ 23,000 TOTAL $765,450 At the time of closing the Developer will pay $450,000 for the site. Of this sum up to $100,000 will be deferred in the form of a second mortgage. Interest on this second mortgage will be at prime, with interest payable semi - annually and the entire unpaid principal balance plus accrued interest due at the end of three (3) years. There are two items which we would like to make the HRA aware of. First of all is that there are certain environmental concerns. Due to past activities which have occurred on the site, we want to insure that the HRA does not come into the chain of the title and thereby acquire environmental liability. Consequently, our approach is for the HRA to commence the condemnation action which allows it to go on the site and do the necessary environmental testing. If the test results are favorable then we will proceed with the condemnation. On the other hand, the quick take process will not be �i completed until favorable results are received. Consequently, if the test results are unfavorable, then the condemnation action will be dismissed. While we cannot guarantee that after construction actually begins there won't be certain environmental hazards discovered which were not disclosed in the environmental assessment, this appears to be a risk which can never be fully protected against. Under our proposal the HRA at least will be able to maintain the defense of an innocent purchaser which made reasonable inquiry. The second risk is also associated with this environmental issue. In trying to anticipate problems, there is the remote potential risk that if the HRA commences condemnation, conducts environmental testing, and then concludes that the site is environmentally unsound and dismisses the condemnation, that the property owner will then commence an action against the HRA for inverse condemnation. The landowners theory will be that through all the development activity which we have engaged in and by commencing the condemnation action, that we have effectively deprived the property owner of the use of this property. While we do not believe that such an action would prevail, we have added the additional safeguard of requiring the Developer to post a Letter of Credit of $125,000 before commencing condemnation. It is our belief that the site upon which the environmental risk �.., is greatest, is Rapid Oil which we anticipate will cost approxi- mately $200,000 to acquire. By requiring the Developer to post a 10 -D F $125,000 Letter of Credit we believe that this will provide the HRA with $25,000 for legal fees and costs associated with condemnation plus $100,000 to reimburse it for any damages which the property owner may be awarded against the HRA. Considering the present status of the law and the risks associated with it, we believe this is a reasonable approach. There is a remaining unsolved issue. Although Crosstown Bank has apparently verbally agreed to a lease commitment, it was not executed by November 30th as directed by the HRA in November. Although we did not recieve direct authority from the HRA to extend this deadline, it seemed reasonable under the circumstances to extend it until 5:00 P.M. on December 7, 1988. If a commitment is not received by then we will invite the other Developer to attend the December 8, 1988 HRA meeting. (See attached letter from Newman to Bubany.) We trust that this has adequately summarized the conceptual agreement reached between the HRA staff and the Developer. If the HRA supports this proposal, the next step will be to prepare a development contract for presentation to the HRA at the January meeting. A 58 ttL AVEAE. �j 4' 10-E 57 ft AVE.N.E. SITE INFO_RMAT Ot4 SITE AREA 114,180 So. FT. -- 2.62i AC. B=ING 1 STORY 10.900 SO. FT' 2 STORY 8,400 �FTI "MTN 19.300 So. FT. - 162% COV- PARKNO = Ca 6/1000 So' FT' z 116 REO'D. iTE PLAN PROVOW Z .124 STALLs,--i,,, DRIVE-W TELLER AREA) ,j 0 we u O Q rn z W .2 CL 0 w ui > -i w uj LL cr M cs 1�'� DEC-07-188 19:02 T- CROSSTOWN BLA I NE #594 -02 etaine • Ham take • bt. r renum December 7, 1988 Mr. Edward C. Bubany Inc. Winfield Developments, 3300 Edinborough Way Edina MN 55435 10 -F RE: Banking and Office Facilities - 57th Avenue Nortl, and University Avenue. Fridley, Minnesota: Letter of Intent Dear Mr. Bubany: ' This correspondence is to confirm that Crosstown Bank to mpletment °thence arrange ments with good faith negotiations to finalize our rinstitution atmthe above site• establishment of a detached facility o We have reached preliminary agreement on a number of key elements, including the following: 1. The Project consist of approximately 18,000 square feet of The Project ita..lf will rentable area s.id contain a two -story element which will be basically used to provid banking facilities on the first floor along with office e facilities on the second floor oft the 8, OOOtsquareefeet .withetheobalance element will being single pstory and primarily dedicated for retail and of the space being commercial users. 2. Basic Lease TeL,ne lease under the basic economic terms as The facilities are available for listed below: A. Suite locations: Banking facilities Executive offices B. Suite size C. Anticipated occupancy date D. Lease Term lot f Ivor 2nd floor Xpproximately 5,889 rentable square feet On or before October 1, 1989 Undetermined Ham Lake: 17635 NE Central Ave. Ham Lake. MN 55304 Phone' 1,812. 434.9561 Blaine: 12301 NE Central Ave. Blaine. MN 55434 Phonc' 1 -612. 755-9060 "Automatic Teller Machine Available At All Liwations DEC-07-'BB 19:03 T- CROSSTOWN BLA I NE 11594 -03 10-G Mr. Edward C. Bubany December 7. 1988 Page 2 C. 3. Construction of Bbilding The Project will be constructed using burnished block with brick veneer accent and, perhaps, some stone accent. Glazing and other schematics will be substantially as presented in the preliminary elevations attached hereto. 4. Design The space will be completed as shown on the attached commercial floor plan dated November 1, 1988 as drawn by the Design Partnership. 5. Drive-up Teller Area Construction will include drive -up teller areas including an overhead canopy and all curb modifications incidental to installation of the drive -up facilities. 6. Expansion We will have available a first right of refusal on the adjacent 1,950 square feet of first floor space which right must be exercised within five days of notice from landlord of landlord's intention to lease the space. If we choose not to exercise the right of first refusal then will be granted an additional right of first refusal on the space if the tenant leasing the space decides to vacate. Rental rates will be at the then prevailing current market rate. This additional right of first refusal will also carry a five day exercise period. 7. Landlord's and Tenants Contingencies A. Land Acquisition, Construction It is the understanding of all the parties hereto that construction of the above referenced Project is contingent upon a number of circumstances including. but not limited to, the successful negotiation of a Development Contract with the City of Fridley (which is presently underway), the ability of the landlord to obtain financing in sufficient amounts to construct the Project and the ability of the City of Fridley to condemn certain portions of the existing site as part of the Development Agreement and turn over the site in time to meet tenants' occupancy requirements and construction deadlines. It is further understood that tenant desires to take possession of the space no later than January 1, 1990 and that time is of the essence in providing tenant his space within these guidelines. Consequently, the operative documents will provide for a termination of any obligation on our part if landlord cannot acquire title to the land and commence construction by June 1, 1989, and complete construction for our occupancy by January 1, 1990. B. Approvals by Tenant Several key elements which could adversely affect Crosstown Bank's ability to implement the tenancy contemplated by the hereto attached correspondence have yet to be advanced in final form. These elements include, but are not necessarily limited tos 10 -H Mr. Edward C. Bubany �. December 7, 1988 Page 3 1) Municipal Approval of Crosstown Bank's desired signage, which may include electronic readerboard devices and which may require variances from municipal ordinances; 2) Municipal approval of Crosstown Bank's desired parking configura- tion; 3) Approval by the Minnesota Department of Commerce. Banking Division, the Federal Deposit Insurance Corporation (FDIC), and any other regulatory agencies, of the establishment of a detached facility of Crosstown Bank at this location, and approval of the capital expenditures required of the bank; 4) Approval by Crosstown Bank's legal counsel of the language of the proposed lease, both as to its terms and its compliance with regulatory standards of the bank regulators. It is the intention of Crosstown Bank to promrtly pursue resolution of the above matters, such that the commitment of both parties can be reduced to an irrevocable written form. In the meantime, our execution of this letter should be interpreted as our acceptance of the basic proposal, as it relates to the above terms. Please advise me as to your recommended next step in these proceedings. Sincerely, i� Thomas P. Dolphin President TPD /srs . Wh HERRICK & NEWMAN ATTORNEYS AT LAW Virgil C. Herrick James D. Hoek Gregg V. Herrick Of Counsel David P. Newman Jock Robertson City of Fridley 6431 University Avenue Fridley, MN 55432 RE: Pappy's Food Company Dear Jock: May 10, 1990 Based on our conversation as well as the communication you have received from Mr. Pelstring, a consultant for Pappy's Food Company, you have asked for my comments on a financing proposal. It is my understanding that Pappy's Food Company is seeking to expand their facility and in the course of this they wish to acquire additional bakery equipment. If they in fact acquire this equipment they anticipate that they will also secure additional business of at least $2,000,000. Due to financial commitments that Pappy's Food Company will need to make in order to expand their faciltiy, they cannot obtain the financing for acquiring the additional equipment by conventional means. They have had tenative discussions with a leasing company about leasing the equipment to them but they are in need of further financial assistance. The proposal as I understand it is for Pappy's Food Company to enter into a lease for this baking equipment and that the amount of the lease will be based on the purchase price of $600,000. To secure the lease the HRA is being requested to post $100,000 as security. In the event of default under the lease then the lessor will have the right to draw upon this $100,000 account. The lessor will have a first secured position in the lease equipment and the Housing Authority will have a subordinated security interest. Further, it is my understanding that the appraised value of this equipment is substantially greater than the purchase price of $600,000. The request to the Housing Authority is to authorize staff to initiate discussion with Pappy's Food Company in order to see if an arrangement can be structured along these lines. In talking to Mr. Pelstring he made it clear that the lessor will require a first secured position in the equipment and that the HRA will be relegated to a second position. However, he also indicated that Pappy's Food Company does not intend to use all of this equipment and they anticipate that they will be able to sell some of it. Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612 -571 -3850 Jock Robertson May 10, 1990 Page Two In the event that they do sell the equipment they have agreed that the sale of proceeds will be used to prepay the lease which will then allow the amount on deposit by the HRA to be reduced as well. We also raised with Mr. Pelstring the possibility that the owners of Pappy's Food Company might have some other assets that they can use to secure the deposit by the HRA. Mr. Pelstring indicated that he thought there would be some assets that can be considered and that he would have further discussions with his client in order to identify them. You need to recognize though that in all likelihood while these assets may have some equity there probably is also some risk associated with them. If these assets were of such quality that a lending institution would accept them as collateral then Pappy's Food Company would not be approaching the HRA to fund this $100,000 account. I believe this generally summarizes the proposal from Pappy's Food Company as well as the issues which we have raised in our subsequent conversation. At this point this concept is very rough and we will need to further identify: 1. The exact appraised value of the property, 2. Determine how much of the assets Pappy's Food Company intends to sell and what they anticipate the selling price to be, and 3. Further identify what other assets Pappy's Food Company might have that they can pledge as security. If the HRA will authorize us to proceed, we will gather this information and prepare our recommendation to them at the June meeting. DPN:jeb 'ncerely, yours, vid P. Lwman L /irgil C. Herrick Imes D. Hoeft ;regg V. Herrick Of Counsel )avid P. Newman HERRICK & NEWMAN ATTORNEYS AT LAW Jock Robertson City of Fridley 6431 University Avenue N.E. Fridley, MN 55432 May 4, 1990 RE: Rice Plaza Shopping Center Dear Jock: Based on authority previously given to me by the Housing Authority at their March, 1990 meeting, I have entered negotiations with the owners of the Rice Plaza Shopping Center regarding the purchase of this property. Accordingly,. Mr. Levy and I have reached an agreement for the purchase of the property for the sum of $1,004,000.00. This agreement is contingent upon final approval by the Housing Authority at their May 10, 1990 meeting. In the next several days I will attempt to reach an agreement with Mr. Levy on the terms of a purchase agreement so that it can be presented to the Housing Authority at their meeting. I have reviewed this purchase price with our Appraiser and he is comfortable that this price is within his range of what he considers to be fair market value. Also, this price is within the authority that you and Mr. Burns provided to me. At the request of Mr. Burns I did inquire whether or not he was willing to enter into an with the Housing Authority. He indicated that interested in doing so and based his reasoning he had a perspective third party purchaser who the transaction now. 3f Mr. Levy as to option agreement he was not on the fact that is ready to close I also inquired of Mr. Levy as to whether or not he would be willing to simply convey the portion of his property necessary for the widening of Mississippi Avenue. Again he indicated he was not interested and once again his basis is that because of the other purchase agreement it was a preference of his clients to cash out on the whole project. Once again it is my hope to be able to provide you with a purchase agreement for consideration by the Housing Authority at their May 10, 1990 meeting. ince el yours, id ewman DPN: jehuite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612- 571 -3850 IH[IEIR.RICK & N WW MAN •� ATTORNEYS AT LAW 'irgil C. Herrick Ames D. Hoek iregg, V. Herrick Of Counsel lavid P. Newman Robert A. Levy Parsinen Bowman 100 South Fifth Suite 1100 Minneapolis, MN VIA FACSIMILE & Levy Street 55402 May 4, 1990 RE: Rice Plaza Shopping Center Dear Bob: I am writing as a follow up to our telephone conversations of May 3, 1990. I have been advised by the Anoka County Treasurer that in fact state deed tax will need to be paid on this transaction. Accordingly, based on our conversations it is my understanding that both parties have agreed to a purchase price of $1,004,000.00 for the subject property. As I indicated to you I will be taking this to the HRA at their May 10, 1990 meeting for final approval. I can assure you that this price will have the full support of the staff and based on earlier conversations with the Housing Authority I am reasonably confident that they will accept staff's recommendation in this matter. Within the next few days I will attempt to forward a purchase agreement on to you in the hope that we can agree to its terms and have a full purchase agreement for presentation to the Housing Authority on May 10, 1990. Thank you for your cooperation. Sincerely yours, David P. Newman DPN:jeb cc: Jock Robertson Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612 -571 -3850 ill 05184/90 12:18 6127869034 BUSINESS DEVELOPMENT SERVICES PAGE 01 ./ Business Development Services, Inc. MEMORANDUM TO: .lock Robertson, Executive Director, .` Fridley Housing and Redevelopment Authority PROM: Patrick W. Pelstring Business Development Services, Inc. DATE: May 4, 1990 RE; PAPPY'S FOOD COMPANY EXPANSION PROJECT INTRODUCTION . Keith garner, Bob Seul, and I appreciated the opportunity to meet with'you and Mr. Lanpher to discuss the expansion of Pa.ppy's Food Company. Pap py'S .currently occupies a 7,700 square foot facility in Fridley and is seeming to acquire /lease the existing Service .America building at 7490'Central Avenue: This would result in a very -substantial expansion of their existing, operation. In addition, the company has an opportunity to acquire approximately $600,000 of bakery equipment from another Twin Cities company. This would also result in securing an additional $210009000 to $3,000,000 of business associated with the production equipment. `This expansion would increase both their presence in Fridley and ultimately lead to an additional 30 to 40 new jobs. FINANCIAL ASSISTANCE Pappy's.recently completed the acquisition of the Edwards Food ..Group in Iowa and I.11inois.. This transaction involved a substantial amount *of local and state assistance. Due to this rec6nt' transac.t'ion, I Mould not' be optimistic .concerning their. opportunities to secure traditional bank financing to fund the expansion project.- 6127869034 05/04/90 12:18 6127869034 BUSINESS DEVELOPMENT SERVICES PAGE 02 B Pappyis Food Company Expansion Project May 4, 1990 Page 2 We are in the process of securing an investor who has agreed to acquire the building and lease it back to PaPPY's• It appears that the company will not need any direct financial assistance for this part of the project. The company Is requesting participation by the Fridley HRA in support of the equipment acquisition. The company has applied for lease financing and is requesting participation by the Fridley HRA to Bind the lease reserve. Typically, the lease reserve cost would be between 15 and 20 percent of the acquisition cost. Specifically, the 'company would be requesting that the Fridley HRA post the lease deposit on behalf of Pappy's Foods. These funds would be escrowed by the. leasing company and continue to to existing H earn .investment earnings comparable FtA� investments. would receive its original .Upon completion of the lease, the BRA investment'and investment earnings. Clearly, however 'these funds would be "at risk "' based upon the performance of Pappy's Foods. As a result, pappy's would expect additional security arrangements to be negotiated to secure the HRA /Pappy's transaction. i've.had an opportunity to review this concept. with Jim O'Meara, Briggs & Morgan. In a preliminary sense, Jim feels the transaction would be feasible utilizing existing HRA funding. 'The justification for the use of funds would be based upon the overall economic benefits associated with the project. In addition, the HRA would have the opportunity, to establish a Tax Increment Financing District on the existing building site and capture any new increment as additional project income. :SUMMARY At this stage, we are seeking only a. preliminary review of the eoncept by the Fridley HRA.' a would expect to negotiate firm ab9ui.s'Ition costs, leasing commitments, and develop a funding 'schedule for consideration at your June meeting. Your consideration o€ this request is, greatly appreciated. Sincerely, BUSINESS DEVELOPMENT SERVICES, INC. Patrick W. Pelstring President PWP /mc F4 O a a N a W m cc - 44 W 13 w m .-1 0c .9 .4-4 a - °+uaou IA NCIa m 0 1+ c +IUrIUWto W IO mit � r1 a 41 Ix —1 c eumsewm ab+acroom c0iC 0+m 40 >.� S> Ixiw 4 FA a$ 1 V Ua N rlru r p I p uwaa+ uaxwaxa G 0 41 ed m ,W 4 PP+ rn �\ N. to to to � a rJ In r-4 N uN, M tn 4In 1 U ua w ONE r-4 In u0 N rl N N 1 r4 r1 N. v m v v vv �a ua uola w lw t 1 m W m m 4+ m V mc .+ D e m0 c V°V VW 0 --IA la to 0 w+C+ to 0 er y W 1,+ 0 1 ', V.j W 0 C 00 O W V w a V `+ c w w 0 v 4 %4 W a b 4 - a 11 �.1a WOc X10 LI b M 04 M O 'D U +1 > m 'O 'C 1 0 9 C p0p W w N 1 I W ri 1 T. I O b V O b A U b • © r4 a� A k � .� 0 C kk _ M -" in �- w� mw CD co -N �co u■ o� o� ��r% as �Ad NN �� � u■ § in %o ��� § ©a § § to § � q� �� �� N,� en -- tk ua vk Uk ■ a to � B ■ � § CA § k ° § � a § § $ § § ■ § � , . ■ , . ■ . i & b /11 � m v+ a N 9 a 0 r4 V4 N \ 00 uu ua �o NV' N-W �4 rl M H N. \ Ch o+ o+ !'\1 f'\1 U aU 1\ fn Uwa -W to uw 9-4H \\ o m co as rr V \N U U W U uxa rl N \\ In in wa NV NV' N-W �4 rl M H r4 A d !'\1 f'\1 M m 1\ fn � ua uw uw m d � o m a .4 v 3 ++ a+ .4 w r4 w s -+ w 41 a o b a o b o b w x � � v0 i � � � � m a M at N a N i� 0 r-4 r4 \\ 00 Hr4 u ua vLn \\ a Ch N V ri rl l'f P1 UU Ua o+ q �+ o+ b o+ N M Of y 01 V m W O N pHp E3 -4 O 'o N C 3 0�+.. a a� -4V 3 C C m O,a 4)A A w W 6� �1 ,4 :3 V 10 �4 O +i q O 'o b m c� of tciUA II i i m wmIII•- I. II. III. IV. V. VI. SOCIO- ECONOMIC Introduction Population Trends A. National B. State C. Regional D. City of Fridley Population Characteristics A. Age Structure B. Migration C. Household Characteristics D. Occupancy Characteristics E. Income Characteristics F. Census Neighborhood Breakdown Economic Trends A. National B. State C. Regional Metropolitan Council Projections A. Population B. Employment Fridley's Economic Characteristics A. Industry Types 1. Manufacturing 2. Research 3. Assembly 4. Warehouse 5. Other Socio- Economic Outline Page 2 B. Commercial Types 1. Retail 2. Office 3. Service C. Labor Force Characteristics 1. Number of Jobs 2. Unemployment Rate 3. Working Age Population OVERVIEW I. Introduction - Historical Overview II. Comprehensive Planning Process A. Metropolitan Land Planning Act B. City of Fridley Planning Process C. Metropolitan Council System Statement III. Metropolitan Development and Investment Framework IV. Summary of Goals and Objectives of Remainder of Plan �`1 ENVIRONMENTAL RESOURCES I. Introduction II. Inventory of Natural Features A. Woodlands and Vegetation 1. Oak /Oak Savannah 2. Riverine Woodlands /Flood Plain Woodlands 3. Urban Forest H. Waterbodies - Water Courses 1. Lakes 2. Rivers, Streams, Creeks 3. Other (Harris Pond) C. Geology 1. Regional 2. Local Subsurface 3. Local Surface 4. Aquifers D. Wetlands 1. Location 2. Characteristics 3. Regulatory Agencies a. Minnesota DNR b. Army Corp of Engineers C. US Fish and Wildlife Service d. Watershed Districts E. Air Quality .1. PCA Standards Environmental Resources Outline Page 2 F. Historic Sites 1. Locke House /Banfill Tavern 2. Hayes Annex 3. Moore Lake Dunes III. Inventory Vacant Parcels for Natural Resources; Unique Features A. Residential B. Commercial C. Industrial IV. Threats to Natural Resources A. Vegetation 1. Oak Wilt 2. Dutch Elm 3. Purple Loosestrife B. Waterbodies 1. Storm Water Runoff 2. Pollution a. Industrial Waste b. Commercial Chemicals (1) Fertilization (2) Herbicides (3) Pesticides C. Air Quality 1. Traffic Impact 2. Industrial V. Goals and Objectives 111�1 SOLID WASTE ABATEMENT I. Introduction II. Current Programming III. Regional and State Policy A. Waste Management Act B. SCORE C. County role D. City role E. Summary statement IV. Local Policy Development A. Narrative of finding from Fact - Finding Process B. Narrative of survey results C. Summary statement V. Goals and Objectives 1990 A. Build on summary from Sections III, IV B. Should address: Plastics Market development Waste reduction C. Council determination VI. Identify Commercial and Industrial Abatement Activities for Reporting Purposes VII. Identify and Implement Strategies to Accomplish Goals LAND USE I. Introduction II. Existing Land Use Inventory A. Residential 1. Single Family 2. Low Density 3. Medium Density 4. High Density B. Commercial 1. Office 2. Neighborhood Commercial 3. General Commercial 4. Shopping Center 5. Multi- tenant buildings C. Industrial 1. Light 2. Heavy D. Public /Quasi - Public E. Parks /Open Space F. Inventory Vacant Parcels 1. Residential 2. Commercial 3. Industrial G. Nonconforming Uses H. Inventory Blighted Areas I. Redevelopment Areas III. Define Land Use Goals and Objectives IV. Analyze Neighborhood Areas A. Reevaluate Perceived Neighborhood Map B. Analyze Strengths, Weaknesses and Opportunities C. Identify Policies for Each Area Housing Chapter Page 2 III. Housing Stock Condition A. Define Terms for Exterior Condition B. Define Terms for Interior Condition (Multiple Family Units) C. Tabulation of Housing Stock Condition 1. Single Family Detached 2. Single Family Attached 3. Multiple Family 4. Mobile Home 5. Total D. Identify Areas of Substandard Housing 1. Neighborhood Analysis IV. Existing Housing Supply A. Vacancy versus Occupancy 1. Single Family 2. Multiple Family B. Housing Costs 1. Rental Ranges 2. Owner- Occupied C. Income D. Housing Tenure V. Housing Demand A. Land Availability B. Household Formation C. Household Size ellrl� D. Household Projections Housing Chapter Page 3 E. Population Projections F. Employment Projection VI. Analysis of Gaps in Housing Continuum A. Identify Housing Types which are Needed in Relation to Analysis of Demand and Household Projections. B. Analyze Neighborhood Areas 1. At risk 2. Standard 3. New C. Analyze Areas for New or Rehabilitated Housing Opportunities VII. Existing Housing Programs A. Federal 1. Section 8 2. Section 202 3. Section 235 4. Section 236 5. CDBG 6. Other B. State 1. MHFA 2. Other C. Anoka County D. Local VII. Goals and Policies W Housing Chapter Page 4 .IX. Strategies A. Discuss Strategies to Provide Types of Housing Styles 1. Relate to Life Cycle Theory B. Strategies to Improve Substandard Housing C. Strategies to Maintain Standard Housing D. Strategies to Remove and Replace Substandard Multiple Housing /1-11, I. Introduction II. Park System Inventory A. City Parks 1. Community Park 2. Neighborhood Parks 3. Mini Parks 4. Special Use Parks B. County Parks 1. Regional Parks 2. Special Use Parks C. School District Areas and Facilities 1. Recreational Facilities 2. School Playgrounds 3. Athletic Fields D. Bikeway /Walkway 1. Off - Street Trail System 2. On- Street Trails III. Park and Recreation Opportunities Map IV. Define Parks and Open Space Goals and Objectives V. Analyze Park Service Areas A. Identify Service Areas of Neighborhood and Mini -Parks B. Analyze Facility and Program Opportunities C. Identify Service Area Needs VI. Strategies for Implementation A. Policy Formulation 1. Programs 2. Maintenance 3. Park Development B. City Park System Projects C. Bikeway/Walkway System D. Interagency Cooperation KUXKN RESOURCES I. Introduction II. Review Existing Social Services A. Service Types 1. Food shelves 2. Crisis intervention 3. Transitional housing 4. Mental health 5. Physical disabilities 6. Elderly 7. Daycare B. Current Provider List III. Evaluate Future Social Services Needs A. Assess Effectiveness of Present Services B. Analyze Participation at Other Levels 1. Federal 2. State 3. County 4. Private C. Identify Trends 1. Examine changing demographics 2. Project future needs D. Determine Service Gaps /Unaddressed Needs IV. Goals and Objectives 11"1 OUTLINE - WATER AND SEWER CHAPTER (preliminary) COMPREHENSIVE PLAN WATER I. Introduction II. Inventory of Sources 1. Hydrogeology a. Groundwater b. Existing City wells III. Supply and Demand 1. Water Usage a. past b. future projections c. rate change 2. Existing system a. wells b. filtration plants c. reservoirs d. booster pumps 3. Anticipated Future Needs a. new b. filter plant c. booster pumps IV. Threats to Water Source 1. Contamination a. volumes b. EPA standards 2. Drought (restricted supplies) a. conservation policies -1- . 11-� OUTLINE - WATER AND SEWER CHAPTER (preliminary) COMPREHENSIVE PLAN SEWER I. Introduction II. System a. City 1. lines 2. lift stations 3. daily flow 4. future demand b. MWCC interceptors 1. capacity 2. flows 3. costs c. Existing versus proposed flow projections III. Infiltration /Inflow a. regional policy b. City methods to reduce I/I IV. Septic Systems a. location of properties not connected to sewer b. description of policy /ordinance on hookup to sewer V. Goals and Objectives ::Flz STORM WATER CHAPTER - COMPREHENSIVE PLAN I. Introduction II. Existing Systems Inventory A. Rice Creek Watershed District 1. Subwatersheds a. Affected water bodies b. Water quality c. Current policies B. Six Cities Watershed District 1. Subwatersheds a. Affected water bodies b. Water quality c. Current policies C. Watershed Goals /Policies (overall) III. Management Practices A. Shoreland Management B. Wetland Control C. Erosion Control IV. Future Conditions V. Goals and Objectives 11"1 TRANSPORTATION I. Introduction II. Metropolitan Setting A. Sub- regional Concept B. Year 2010 Metropolitan Highway System C. Metropolitan Council Transportation Policy Plan III. Existing Inventory of Roadway System A. Functional Classification System Description B. Existing Functional Classification of Fridley Roadways 1. Intermediate Arterials 2. Minor Arterials 3. Collectors 4. Local 5. Unpaved Roads C. Jurisdiction Description IV. System Deficiencies A. Surface Conditions B. Intersections C. Roadway Deficiencies D. Roadway Connections E. Jurisdictional Continuity V. Transportation Plan A. Traffic Assignment Zones B. Existing Volumes C. Land Use Impacts D. Projected 2000 Volumes E. Schedule of Proposed Improvements n F. Traffic Mitigation and Travel Demand Management Measures Transportation Outline Page 2 VI. Transit A. Inventory Existing Systems 1. Description 2. Analysis B. Proposed Transit Systems 1. Light Rail Transit a) route description b) park- and -ride sites C) design guidelines d) land use impact e) impact mitigation f) implementation 2. Revised Transit Routes VII. Proposed Functional Classification Changes A. Arterials B. Collectors C. Local Streets D. Frontage Road VIII. Airports IX. Goals and Objectives A. Arterials B. Collectors C. Transit D. Parking /"'1 IMPLEMENTATION I. Introduction II. Action Strategies for Various Chapters A. Housing B. Transportation C. Land Use D. Water and Sewer E. Storm Water F. Human Resources G. Solid Waste H. Parks and Open Space I. Environmental Resources III. Discussion of Regulations Implementing the Comprehensive Plan A. Zoning Ordinance B. Subdivision Ordinance C. Others IV. Capital Improvement Program A. Description of Revenues B. Description of Expenditures C. Listing of Current Five Year Programming D. Projection of Expenditures for Last Five Years of Decade V. Identification of Other Implementation Sources A. Private Funding Sources B. Federal and State Programs C. Other VI. Discussion of Five Year Re- evaluation Process of Comprehensive Plan OUSNC and REDEVELOPMENT AUTHORffY COMMISSION MEMBERS: LAIMIENCE COMMERS, CHARMAN KWW PRAT E rOMM SCHNASEL WALTER RASMUSSEN JOHN MEVEI OF FRIDLEY DATE: May 2, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Status Report on Various Projects Here is a summary of developer contacts and progress on various details. I believe it should be emphasized that many of these contacts are highly confidential in that they involve proprietary information of the firms we are working with. 1. I met with Anoka County Economic Development Partnership to prepare an outline of a response for possible relocation of Pappy's Foods, Inc. Pat Pelstring, consultant to the Partnership, stated that Pappy's financial condition is probably extended to the maximum at this time; therefore, we will seek to propose a package whereby a developer would build a new building for Pappy's in a Fridley TIP district for Pappy's to lease with a future purchase option. A meeting is set with Bob Seul or Keith Warner of Pappy's Foods to review the outline of this approach next week. 2. I met with Bob Fine, a leasing agent for Northco. They are looking for another bank to replace Western State Bank as the anchor tenant. Western pulled out last month. I spoke about the possibility of a liquor store condominium in that location also. Also furnished him with some background information on the 57th Place and 10,000 Auto Parts site proposal regarding the size and mixture of uses. Mr. Fine observed that a liquor store as an anchor will not generate the rents and, therefore, not have the project value that a branch bank would. 3. I spoke with John Gargaro, Fridley State Bank, about a proposed relocation of Fridley Bus Company. Owner, Darwin Voigt, says he is running out of space at his present location north of Stylmark and wishes to .relocate within the City of Fridley but with a very inexpensive building, perhaps a pole building. I informed Mr. Gargaro that the City Council and the HRA in the past have used tax increment money only for exemplary, high quality buildings, which would essentially set standards for the rest of a redevelopment district. E CUTIVE DIRECTOR: JOCK ROBERTSON •421 UNIVERSITY AVE. ($12) 571 -2450 FIIIDLEY9 NN 55422 EXT. 117 Status Report on Various Projects May 2, 1990 Page 2 4. I met with Jack Brandt of Fridley Plaza Office Building to discuss progress on leasing up the building. (See memo under separate cover.) It would appear that full leasing up of the building may be imminent within a week or two, and that the building owners may approach the City about dedicated parking for tenants or tenants' patients. At that time, we can require the owners to pay their back taxes and mortgage payment before any negotiations begin. 5. I spoke with George Applebaum of Moore Lake Commons. He indicated that their loan was now due and that Norwest was re- evaluating all their outstanding loans for retail centers in the Twin Cities. The Shopping Center group plans to have a property appraisal for review and possible action by the bank in 2 -3 weeks. 6. I spoke with Mary Schmitz, President of Pro Engineering, about progress in selecting a site for their new facility. We have a disappointment here. Pro Engineering has selected an existing building in the City of New Hope. The building was built in January 1988 as a machine shop and has all the features that Mr. Schmitz would have built into a new building here, including air conditioning, overhead bus bars, security, sprinkling, and lawn irrigation system. The building must be expended to meet his needs; however, total cost savings are about $200,000 less than the proposed Fridley project. Mr. Schmitz indicated that as a Fridley resident, he would still eventually like to locate even a larger facility in Fridley. However, obviously this would be some time in the far future. 7. I met with Jim O'Meara, Fridley bond attorney, to review the newest TIF legislation and to set up a schedule of activities to execute anew TIF district for the two parcels each of the 10,000 Auto Parts site. It appears that the best approach for us would be to set up a 15 year tax increment district for the two homes to the east using the new category in the statute called a renovation and renewal district. It appears that the City Council public hearing for setting up the district could be scheduled for the regular Council meeting of June 18, 1990. JR:ls M -90 -313 '= COMMUNITY DEVELOPMENT DEPARTMENT anoF FMDLEY MEMORANDUM DATE: April 30, 1990 TO: William Burns, City Manager FROM: (mock Robertson, Community Development Director Barbara Dacy, Planning Coordinator SUBJECT: American Legion Intent to Purchase Saba Property Lyle Horton, the Membership Director from the 10th District American Legion, notified our office today that they are beginning negotiations with Mrs. Saba, owner of the property immediately south of the American Legion on Central Avenue. As you recall, the Saba property has been the subject of numerous code violations. It is the American Legion's intent to acquire the property, and ultimately expand its parking lot. Mr. Horton stated that if they can agree on a price, they would lease the property back to Mrs. Saba for a period not to exceed five years, at which time they would remove the house and expand the parking lot. Mr. Horton inquired as to whether or not TIF monies were available for acquisition of the Saba property. We informed Mr. Horton that although the property is within the recently created Onan District, the HRA has other priorities, such as the Onan property and acquisition of the junk yards. Please pass this on to Councilman Schneider and the City Council. BD /dn M -90 -287 CITY OF FRIDLEY M E M O R A N D U M TO: WILLIAM W. BURNS, CITY MANAGER FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR SUBJECT: EXPENSES ASSOCIATED WITH THE ADVANCED REFUNDING TAB INCREMENT BOND ISSUE OF 1990 DATE: APRIL 23, 1990 Attached is a detailed description of the dollar amount associated with both the proceeds and expenses related to the above referenced bond issue. This information should be provided to both the City Council and the Fridley Housing and Redevelopment Authority. This Bond issue closed on March 28th, and as such, has defeased The 1986 G.O. Tax Increment Bond. Please note, the proceeds on the issue were used to acquire SLGS which are now held by First Trust in escrow. If you have any other questions regarding this issue, please feel free to call. RDP /me ANALYSIS OF PROCEEDS AND COSTS ASSOCIATED WITH THE ADVANCE REFUNDING TAX INCREMENT BOND ISSUE OF 1990 J GROSS AMOUNT OF BOND SALE $9,485,000.00 ESCROW AGENT $4,000.00 AMOUNT OF DISCOUNT $500.00 SINDICATE OF NORWEST $139,195.41 ISSUANCE COSTS $5,800.00 FINANCIAL ADVISOR FEE $32,489.90 CASSERLY MOLZAHN & ASSOC. $83,654.97 MILLER & SCHROEDER $9,262,149.62 BOND COUNSEL BRIGGS AND MORGAN $18,500.00 BOND RATING $3,079.59 MOODYS INVESTORS SERVICE $7,000.00 PRINTING COSTS AMERICAN FINANCIAL PRINTING $4,410.25 CPA REVIEW OF O/S AND NUMBERS BY F/A GRANT THORNTON $3,000.00 ADVERTISING NORTHWESTERN FINANCIAL REVIEW $159.68 POST PUBLICATIONS $47.06 NORTHWESTERN FINANCIAL REVIEW $105.08 FIRST TRUST(SERVICING AGENT) ESCROW AGENT $4,000.00 SET UP FEE $500.00 ISSUANCE OF CERTIFICATES $543.00 86 BONDS: ONE TIME FEE $5,800.00 90 BONDS: ONE TIME FEE $7,100.00 ISSUE COSTS $83,654.97 REMAINING PROCEEDS $9,262,149.62 APPLICATION OF REMAINING PROCEEDS PURCHASE PRICE OF SLGS $9,257,900.00 MONEY RETURNED FROM FIRST TRUST $3,079.59 REMAINING ESCROE HELD BY FIRST TRUST $1,089.74 REQUIRED FOR THE REFUND OF 1986 BONDS $9,262,069.33 CASH REQUIRED FOR THE REFUND i"e, OF THE 1986 BONDS $80.29