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HRA 07/19/1990 - 6391
r f7 x .` 1 g . � MIA D CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, JULY 19, 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: June 21, 1990 ACTION ITEMS: PROPERTY MANAGEMENT AND LEASING CONTRACT FOR RICE PLAZA SHOPPING CENTER . . . . . . . . . . . . . .1 - 1G INVESTIGATION OF CAN- AMERICAN (BOISCLAIR) LOW /MODERATE INCOME HOUSING PROPOSAL . . . . . . . . . . .2 - 2K REQUEST FOR TIF ASSISTANCE TO FRIDLEY AUTO/ SERVICE MALL . . . . . . . . . . . . . . . . . . . . . . .3 - 3H RESOLUTION APPROVING AMENDMENTS TO REDEVELOPMENT PROJECT AND TIF DISTRICT PLANS . . . . . . .4 - 4F ESTIMATES: TALBERG LAWN & LANDSCAPE (LAKE POINTE MAINTENANCE). .5 - 5A CLAIMS. . . . . . . . . . . . . . . . . . . . . . . . . .6 INFORMATION ITEMS: MOORE LAKE COMMONS REPLAT . . . . . . . . . . . . . . . . .7 - 7A TIF DISTRICT NO. 11 STATUS . . . . . . . . . . . . . . . .8 EXPERIENCE OF OTHER HRA'S WITH ASSISTANCE STATUS SIMILAR TO PAPPY'S FOODS . . . . . . . .9 - 9A 57TH PLACE CLEAN -UP STATUS . . . . . . . . . . . . . . . 10 - 10H OTHER BUSINESS CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY FETING, JUNE 21, 1990 CALL TO ORDER: Chairperson Commers called the June 21, 1990, Housing and Redevelopment Authority meeting to order at 7:00 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, Duane Prairie Members Absent: John Meyer, Walter Rasmussen Others Present: Jock Robertson, Executive Director of HRA Rick Pribyl, Finance Director Paul Hansen, Accountant Dave Newman, HRA Attorney Rosemarie Crampton, 5849 - 3rd Street N.E. Dawn Sader, 2421 - 95th Ave. N., Brooklyn Park APPROVAL OF MAY 10, 1990'. HOUSING & REDEVELOPMENT AUTHORITY MINUTES: NOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the May 10, 1990, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMERS DECIARED THE MOTION CARRIED UNANIMOUSLY. 1. CRAMPTON REQUEST FOR SECOND MORTGAGE LOSS MAKE -UP: Mr. Robertson stated Ms. Crampton is forgive the remaining $2,400 of the ten the HRA has on her property at 5849 Crampton wishes to move to another schc a special education teacher and aide disabled child. requesting that the HRA year second mortgage that - 3rd Street N. E. Mrs. iol district in order that can be provided for her Mr. Robertson stated that when the house was completed in 1983, the market value of the property was appraised by the City at $64,200. -Ms. Crampton has a purchase agreement for $74,000. Staff is recommending that there be no forgiveness unless it can be demonstrated that Ms. Crampton received a loss upon the sale of the property. Mr. Commers stated that staff has informed him that the Crampton's had made significant improvements on the property. HOUSING AND REDEVELOPMENT AUTHORITY MTG. , JUNE 21, 1990 PAGE 2 Ms. Crampton stated they have added a garage, front entry way, and a family room in the basement at a total cost of $12,000. Mr. Robertson stated staff can check the assessing records and see what the market value is right now and what the difference is. If it turns out that there would be a loss on the sale, staff can negotiate the agreement to the extent of what is outstanding. The HRA might want to consider forgiving that part that would make up any loss. Mr. Robertson stated that with the HRA's permission, staff can negotiate a final settlement and report back to the HRA at their next meeting. Mr. Prairie stated he was comfortable with staff proceeding. Ms. Schnabel asked if there is any way of verifying that the improvements have been made to the property. Mr. Robertson stated staff can verify with the Assessing Department that the improvements have been made. Ms. Schnabel stated she would feel more comfortable with that type of information. MOTION by Mr. Prairie, seconded by Ms. Schnabel, to authorize staff to negotiate a second mortgage loss makeup with Ms. Crampton after verification of improvements to the property, to be resolved before the July HRA meeting. Mr. Newman asked if it was the HRA's understanding that staff would have the authority to negotiate forgiveness of part or all of the outstanding balance of the mortgage. Mr. Commers stated, yes, that is the HRA's intent. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONKERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. EXTENSION OF HOLD HARMLESS AGREEMENT WITH WOODBRIDGE: Mr. Robertson stated Woodbridge has requested that the hold harmless agreement that was agreed upon in December 1989 be extended for another six months until December 31, 1990. This allows the redeveloper or a potential purchaser to enter onto the Lake Pointe property for the purpose of conducting normal surveys, tests, and investigations for the potential benefit of purchasers of that land. He stated there is no change in the wording of the agreement. M n t HOUSING AND REDEVELOPRENT AUTHORITY MTG., JUNE 21, 1990 PAGE 3 NOTION by Ms. Schnabel, seconded by Mr. Prairie, to extend the Hold Harmless Agreement with Woodbridge Investment Company for an additional six month until December 31, 1990. UPON A VOICE VOTE, ALL VOTING AYE, CHA RPERSON CONKERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. ELECTRICITY BILLINGS FOR LAKE POINTE: Mr. Robertson stated this is in answer to the concern expressed by the HRA at the May meeting about the HRA paying for electricity at Lake Pointe. After a review with the City Manager, staff agreed to recommend that the HRA pay the $7.06 bill for the sprinkler control box because it is part of the temporary maintenance system for which the HRA has already assumed responsibility. Staff also agreed that since the City pays for street lighting elsewhere in the City, they would recommend to the City Council that the City pay the $107.91 street lighting bill. Mr. Commers asked if it is the same situation for the lighting at Moore Lake Commons. Mr. Pribyl stated he believed the City is paying for the street lighting at Moore Lake Commons also. 4. AGREEMENT TO REFUND TIF SCHOOL REFERENDUM LEVIES TO SCHOOL DISTRICTS: Mr. Pribyl stated that in following what he perceived to be the HRA's direction previously, Jim O'Meara of Briggs and Morgan Law Office was contacted to once again develop a two year agreement. They are already half way into the year 1990 so the second half of this is the 1991 portion. He has been in contact with Jerry Seeman of School District #14 a number of times, and they have been pressing very hard to come up with a number for the 1991 funding process. This will commit the City to return increment for 1990 and 1991. There were some changes made in the tax increment legislation that now puts School District #16 into the return also, and the dollar amount is beginning to climb. The total return for 1990 for all school districts is calculated at $261,798.81. They estimate the total return for 1991 to be the same, if not more, than $261,798.81; and this amount will continue to increase each year. Mr. Pribyl stated the HRA should be receiving their first half settlement sometime towards the middle of next month. Staff will probably split this amount in half for each school district. Then, on the second half, staff will do a complete analysis of properties within those districts to determine which ones have actually been delinquent and then subtract those delinquent applicable portions from the last half. HOUSING AND REDEVEIAPMENT AUTHORITY MTG., JUNE 21, 1990 PAGE 4 Mr. Prairie stated that in their previous discussions, it was his understanding that it was a one year agreement that covered two years, but the HRA had to renew it every year. Mr. Commers stated staff should check into the past documentation. If the HRA is committed to the school districts for 1990, they should address that, but as far as another for another two years, he is not sure that is right. By voting on this, they should not be committed for 1992. Mr. Pribyl stated they would just be committed to 1991. He stated the original agreement provided for a payment in 1988 and 1989. Mr. Prairie stated that in order to figure this into the school district's budgeting process, the HRA should have been discussing this in December or January. Mr. Pribyl stated that in the original discussions, School District #14 wanted to be able to have some idea of their next budget year. Mr. Commers stated that at that time, there was not the idea that this would be going on indefinitely. He could understand that the school districts should know so they can figure how to budget, but the HRA should do this before the school districts adopt their annual budgets. Mr. Pribyl stated that ideally, they should have done the 1988 and 1989 payments and then, shortly after that, gone to the 1990 extension. However, staff did not have the manpower to do that at that time. They can cut the agreement period down to just 1990. Mr. Commers stated that realistically they can't do much about it now as the school district is relying on this payment now. But, they should get ahead of it next year. Mr. Pribyl stated it is his understanding School District #14 is working on its 1991 budget right now. Mr. Newman stated that to address the school district budget for the fiscal year beginning in July, the HRA should be ready to address this in January of that year. Mr. Commers stated that since the school district is almost done with its budget for the 1990 fiscal year, in all fairness the HRA should approve the payment for 1990. The school districts should be cautioned that from now on, the HRA wants to address this process prior to the budgetary process. They should then review HOUSING AND REDEVELOPMENT AUTHORITY MTG., JUNE 21, 1990 PAGE 5 the past discussion and documentation and put this on the agenda for discussion at the end of 1990. Mr. Pribyl stated there apparently has been some misunderstanding about how this process was supposed to take place, and they never got keyed into the budgetary process for the school districts. MOTION by Mr. Commers, seconded by Ms. Schnabel, to approve the school district referendum levy returns for 1989, payable 1990, and that this matter be put on the December 1990 HRA agenda for consideration of the 1991 referendum levy returns. UPON A VOICE VOTE, CONNERS AND SCHNABEL VOTING AYE, PRAIRIE ABSTAINING, CHAIRPERSON COMERS DECLARED THE MOTION CARRIED. 5. ESTIMATES: NOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the following estimates: Natural Green, Inc. - $923.48 for labor and miscellaneous parts to repair the temporary irrigation system at Lake Pointe. Talberg Lawn & Landscape Service - $9,385.72 for maintenance services on the landscaping at Lake Pointe May 15 - June 15, 1990. W. B. Miller, Inc. - $1,850.00 for the relocation of driveway for the Flaten property on 5755 Central Avenue N.E. Access Control Technologies - $10,973.00 for the completion of ramp security installation. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 6. CLAIMS (2018 - 2026): MOTION by Mr. Prairie, seconded by Ms. Schnabel, to approve the check register dated June 21, 1990. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 7. UPDATE ON MANAGEMENT CONTRACT FOR RICE PLAZA SHOPPING CENTER: Mr. Robertson stated that at the last meeting when the HRA approved the purchase agreement, they also directed staff to get ,-� an environmental assessment audit. Staff solicited bids from four companies and awarded the bid to Institute for Environmental HOUSING AND REDEVELOPNENT AUTHORITY NTG. JUNE 21, 1990 PAGE 6 y , Assessment based on the most complete description of services and because they seemed to be the most responsive to the HRA's request. He stated the Institute for Environmental Assessment plans to have the work completed by Friday, June 14, and a report prepared for staff by Thursday, June 20, 1990. Mr. Robertson stated there seemed to be no unusual environmental problems, only the ones which staff was aware of before -- asbestos material in the facia of the building. Staff is trying to locate records for one other soil test that Mr. Lundgren had done. Mr. Robertson stated that staff is soliciting proposals for the management and leasing agents for the property. They plan to review at least three proposals and references and bring a recommendation to the HRA at their July meeting. 12. STATUS OF PROPOSED LEASE SECURITY FOR PAPPY'S FOODS: Mr. Robertson stated Keith Warner of Pappy's Foods is still working on the financial plan for the lease of equipment and the proposed project in the old Service America building at Central Avenue and Fireside Drive. In the meantime, Steiner Development has forwarded an acceptable letter of intent to purchase the Service America building and has apparently reached a tentative agreement to lease the building back to Pappy's Foods. Mr. Robertson stated Steiner Development is also negotiating with Service America to build a smaller 10,000 sq. ft. building in the rear portion of the lot and lease it back to the Service America. The agreement has not been reached on this component of the proposal. The HRA may wish to consider setting up a TIF district to capture the increment from this additional building in the near future; however, for such a small building, it may not be cost effective. Mr. Robertson stated he had included a schedule received from Jim Casserly for enlarging the redevelopment project area so that the HRA can consider providing equipment lease security for Pappy's Foods at the July or August HRA meeting. Mr. Prairie asked if there was any history of any other HRA's doing a similar thing -- providing assistance for the lease of equipment. Mr. Robertson stated he did not believe so, but he could do some research and see if there are any. Staff has researched the legality of it, and there is no question but that it is legal. Mr. Prairie stated other HRA's have done some things that were legal, but they received a lot of flack for doing them, whether right or wrong. HOUSING AND REDEVEI+OPMENT AUTHORITY MTG. JUNE 21, 1990 PAGE-7 Mr. Commers stated there seemed no harm in having staff make some inquiries regarding what other HRA's have done. 13. OTHER BUSINESS: a. Proposed Fridley Auto Mall Mr. Robertson stated the Auto Mall is proposed to be located in the northern part of the Onan tax increment district created last year. It is the vacant mobile home sales lot northeast of the Rapid Oil Station. It includes a 26,000 sq. ft. auto service mall and a 4,000 sq. ft. restaurant. Mr. Robertson stated it is staff's intention, while revising the Comprehensive Plan this year, to recommend that Highway 65 be the preferred location for more extensive type retail commercial activities that require an auto trip from establishment to establishment like auto sales, lumber yards, etc. The City has already made a commitment for University Avenue to be more intensive type of commercial, offices and retail strip centers which are characterized by a pedestrian being able to make a trip from establishment to establishment without the need for a car. To that extent, this auto mall would be consistent with the Comprehensive Plan recommendations still in process. �\ Mr. Robertson stated that, on the other hand, are they getting into the situation where every time there is a new development, the developer comes in and asks for tax increment assistance. In this situation, if this land has been owned by the same owners for many years, what is the assistance for? It is not land assembly and it can certainly not be for a land writedown. It is conceivable that one of the stipulations could be that part of the overall deal would be to extend the frontage road where it stops on the south end of the mobile home park through the front tier of mobile, connecting with the Fireside Drive. The developers, Mr. Noyes and Mr. Schroeder, have informed staff that the extension of the road would be very important to the success of their operation; and they have been directed to approach the owners of the mobile home park about purchasing land for that frontage road extension. It is conceivable that could be the justification for tax increment financing assistance. Mr. Robertson stated the City Manager will also be discussing this with City Council. Staff thought it was important to inform the HRA of this proposal and to ask for any policy direction the HRA might have at this time or during the following month. Mr. Prairie stated he has had about ten people ask him if the HRA is ever going to stop building strip malls. Ms. Schnabel stated it does seem like every time there is a new development, someone comes to the HRA asking for assistance. She HOUSING AND REDEVELOPMENT AUTHORITY MTG., JUNE 21. 1990 PAGE 8 is sometimes bothered by the fact that not everything the HRA does is redevelopment in the purest sense. There is a lot that is assistance that is not redevelopment. Yet, she did feel quite justified with the assistance they have provided. Mr. Commers stated that in terms of development, there are two different districts: (1) economic development district and (2) redevelopment district. The bigger problems come when they get to the funding side of it, and they have been funding most of these through tax increment financing. But, everything doesn't have to be redevelopment. The HRA has discussed doing some of the neighborhood -type things they used to do such as the large family home ownership program. There might be some very identifiable projects of that nature that might be worth looking at. Ms. Schnabel stated she has been interested in Habitat for Humanity, and that concept is excellent where they provide assistance, but the people pay back that assistance. It would be nice for the HRA to set up a system like that where they could rehabilitate or create something, using HRA monies, yet getting it paid back. b. Resignation of Dave Newman, HRA Attorney Mr. Commers stated that the HRA certainly appreciated all Mr. Newman's efforts on behalf of the HRA, particularly the extra time Mr. Newman has spent with them. The HRA wished him the best of luck in his new endeavors. Mr. Newman stated Mr. Herrick will be taking his place as HRA attorney. Mr. Newman will be available in Mr. Herrick's absence or for projects he has had experience with. ADJOURNMENT: MOTION by Mr. Prairie, seconded by Ms. Schnabel, to adjourn the meeting. Upon a voice vote, all voting aye, Chairperson Commers declared the June 21, 1990, Housing and Redevelopment Authority meeting adjourned at 8:30 p.m. Res ectfully subm'tted, LyFhASY IaDa Recording Secretary x OUSING and REDEVELOPMENT AUTHORITY 1 COMMISSION MEMBERS: . _LAWRENCE COMMERS, CHAIRMAN �tlANE PRARE VEGNIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: - July 12, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Rice Plaza Shopping Center Management /Leasing Proposals Of the seven firms contacted, three submitted proposals for the management and leasing of the Rice Plaza Shopping Center (see attachments). Based on the criteria in the left hand column below, I ranked the proposals as follows: Criteria 1st Kordiak Mgmt. Fee Renegotiate existing lease Negotiate new lease Monthly report Other Experience 5% monthly gross rents (= $310.50/ month min.) $50 $200 2nd Goldstein Rents, receipts, delinquencies, costs, revenue, acct. balance 24 hr. availa- bility & close location $450 /month (included) (included) 3rd Zberhardt Rent maint. & leases: Caputa & Skogland & Felker - Fridley P.O. Ctr. -11 unit apts., 6551 E.R.R. - retail center at 3700 Central Has other North Metro projects - Brookridge Garden apts. - Emerson commer- cial bldg. (5 tenants) Greater of 4% monthly gross ($248.40) or $500 /month $1 /sq. ft. (= $1,080 to $2,520) $2.50 /sq. ft. (= $2,700 to $6,300) IBM "state of art" "Propman" 50 years exper. -many larger facilities (see attachment) EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 571-3450 FRIDLEY, MN 55432 Rice Plaza Shopping Center "'`fly 12, 1990 .ge 2 Criteria 1st Kordiak 2nd Goldstein References -Gabe Giancola: -Jim Felker: "worked hardest" "highly rec., -Bob Halva: "highly does a good job" recommended" -Mike Labalo: "very conscientious, very hard worker" HIF.1 3rd Eberhardt -many clients (see attachment) I recommend the HRA direct staff to negotiate a management /leasing contract with the Kordiak Company based on the attached proposal. Since the closing on the property is scheduled for July 20, 1990, I suggest the HRA authorize the final contract be approved and signed by the HRA Chairperson, Larry Commers. JR:ls M -90 -484 The 1 -B n n n Kordiak ,-=fl n n Company n Real Estate n Property Management n Appraisals n Income Tax Service 6/21/90 Mr. Jock Robertson Community Development Director Fridley City Hall 6431 University Ave. N.E. Fridley, Minn. 55432 Dear Jock, I appreciate having this opportunity to offer my services as Property Manager for the commercial center which you and the HRA board are presently considering purchasing. As I had indicated during our recent meeting I am a licensed Real Estate Broker and have used it exclusively in the area of property management. I have managed a wide variety of buildings including homes, apartments, retail buildings, commercial warehouse space and a St. Paul shopping center. I presently manage several buildings including two in Fridley, the Fridley Post Office complex which is a similar to this center and an 1 1 -unit apartment building on East River Road. As a local resident I know the area well and have good contacts with people in it including potential tenants, vendors and other support services which might be of assistance to you, the buildings tenants or new prospects. My home and office is nearby which would make the center convenient to me and I am available on a 24 hour basis should problems arise. I can assure you that I would handle the management and finances of this building as though it were my own. My office can provide to you and your board monthly financial statements which will identify all income and expenses. I propose charging five percent of monthly gross rents collected as a management fee and an additional $50.00 for renegotiating existing leases and $200.00 for new leases. In response to your request for three references I would offer the following: 3948 Central Ave. N.E. Minneapolis, MN 55421 788-9651 788 -0911 1 -D (/.�roo�rid�e �ar�en ..ftparEinenf� 8700 73RD AVENUE NORTH MINNEAPOLIS. MINNESOTA 88429 July 10, 1990 Mr. Jock Robertson Community Development Director City of Fridley 6431 University Avenue NE Fridley, MN 55432 Dear Mr. Robertson: With reference to our conversations regarding the management of your upcoming strip center, I would be in a position to manage same for a fee of $450.00 per month. This is not based on a percentage basis because of what may happen with short term leases. I would provide a simple monthly report regarding rentals, maintenance and leases. �--� At present I am managing for Brookridge Garden Apartments (a partnership of which I am managing partner) and Emerson Development Company. Brookridge is residential, and Emerson is commercial. Emerson Development includes a medical clinic, Paper Warehouse, dentist offices, Clean N Press and Lagoon Antiques. This information is submitted for your consideration. Please feel free to contact me if you have any questions or wish to discuss the matter.further. Kindest regards, Mel Goldstein MG /m Personal Reference: Mr. A. James Felker, C.P.A. Caputa, Skoglund & Felker 6401 University Avenue NE Fridely, MN 55432 SEND ALL CORRESPONDENCE TO: GARY T. MITCHELL COMPANY BUILDING MANAGEMENT 2460 VALE CREST ROAD - MINNEAPOLIS, MINN. 55422 1-E • T - I a 0 r; COMMERCIAL REAL ESTATE June 27, 1990 Mr. Jock Robertson Community Development Director City of Fridley 6431 University Avenue Northeast Fridley, Minnesota 55432 Dear Mr. Robertson: We appreciate this opportunity to propose on management of Rice Plaza Shopping Center in Fridley, Minnesota. Over the past 50 years, Eberhardt has developed an excellent reputation in this real estate community for property management expertise and integrity. We are committed to helping our clients realize their real estate investment goals. As we have done for over 50 years, we achieve their goals through effective marketing programs, sound financial planning, proven methods of building operation and complete and timely communication. Our fee to manage Rice Plaza Shopping Center would be the greater of 40/0 of collected gross rents, or $500.00 per month. Construction supervision fees would be 8% of the cost of work done. Leasing fees would be $2.50 per square foot. K an outside broker brings a tenant, the fee would be paid to the outside broker and 50% of that fee would be paid to Eberhardt. The fee for lease renewals would be $1.00 per square foot. If you have any questions regarding this proposal, please call me. We look forward to working with you on this property. Sincerely, s ph L Oolmberg, as ant Eberhardt Property Man Bement Company JLH:pdc cc: Gerry Norton U08 Nicollet Mall • Suite 215 • Minneapolis, Minnesota 55403 • 612/3364200 • FAX 612/336 -4300 n, 1 -F WHY HAVE EBERHARDT MANAGE YOUR PROPERTY ? Because your real estate assets are valuable. You need an experienced manager who can maximize the value of your properties, who can provide expertise and the attention necessary to make your investment profitable. It takes specialized skills to make your, properties run well. We have people with the skills necessary to attract and retain the right tenant mix, to keep your building and grounds attractive and mechanical systems operating efficiently and to provide timely and accurate financial analysis and reports. Eberhardt has been in the property management business for over 50 years. We are one of the few management firms in the Twin Cities to be designated an Accredited Management Organization (AMO) by the Institute of Real Estate Management (IREM). Eberhardt has an excellent reputation in this real estate community for management expertise and integrity. We have 'state of.the art' data processing capabilities with an IBM System 38 running the Propman property management software. Our excellent internal controls are verified by the enclosed Report on Internal Control issued by our auditors. The best test of the quality of our management services is the satisfaction of other owners for whom we manage. We encourage you to contact the owners listed on the attached list of references. COMMERGAL REAL ESTATE Is an accredited firm managing y our real estate investment? If an ACCRED= MANAGEMENT ORGANWAMN® manages your real estate assets, there is no question about management expertise, financial stability, professional excellence, and integrity . AMO® is the only designation awarded to firms by the Institute of Real Estate Management (IREM) and only slightly more than 400 firms in the United States have achieved it. These elite organizations set the standards for excellence in property and asset management. These companies earn the right to display the prestigious AMO® symbol of accomplishment by fulfilling the stringent requirements set by the Institute. "" ' an AMO® manages your Teal estate assets, congratulations; you've made an excellent decision." 1 -G 1 w ®'E ProfmimW Fxpeniw Management expertise is the critical factor in increasing the future value of your real estate investments. AMOO films are required to employ CERTIFIED PROPERTY MANAGEN (CPM®s) to direct and control their prop- erty and asset management activities. The CPM® designation is the most widely recognized property management designation among institutional investors, and it is attained by individuals who complete extensive course study and who have met experience requirements in both fiscal and operational management. w dacreditation E you When an AMOS firm, you can be certain it r.° has the credentials so vital to maximizing profitability and marketability. To be accredited, a firm must have an established reputation of professionalism. Before the designation is awarded, the applicant's qualifications are reviewed by national and regional leaders of IREM. Firms must be re- accredited every three years. •�., The AMO® reputation of honesty and professional mteg city assures you that your investment is managed by one of the most respected and influential management firms in the country. AM09 firms abide by a formal Code of Ethics established by IREM. The Code of Ethics regu- lates relationships with the owner/investor and the public, and controls promotion, advertising, and operation pro- cedures. AMOss pledge that they shall not receive, directly or indirectly, any rebate, fee discount, or other benefit without your knowledge and consent. r •¢ Fi amicial Stability - °`' The Institute of Real Estate Management has established well- defined financial criteria for attaining AMO° status. Each AMO© firm undergoes an independent financial review, must meet IREM's highest standards in asset/ liability ratios and accounting procedures, and is required to obtain three types of insurance: Broad Form Money and Searrities, Depositor's Forgery and Alterations, and Fidelity Bond. EBERHARDT PROPERTY MANAGEMENT COMPANY COMMERCIAL PROPERTY MANAGEMENT OWNER REFERENCES 1 -H r"1 PR..., ECT LOCATION .OWNER UMAGA Minnetonka JMB Institutional 164,000 sq.ft. office Realty Corp. Paul Coady Westpark Plaza 'Plymouth (312)915 -2581 96,000 sq.ft. offce / wrhse The Titus Building Edina The Ohio National 52,000 sq.ft. office Life Insurance Co. Mike Stohler Shingle Creek Brooklyn Center (513)861 -3600 85,000 sq.ft. offc /wrhse The Young - Quinlan Building Minneapolis The 614 Company 143,000 sq.ft. offc /retail Robert Greenberg (612)333 -6128 The Wyman Buildings Minneapolis Wyman Properties 387,000 sq.ft. offc /wrhse Burt Corwin (612)339 -6336 St. Anthony Shopping Center St. Anthony Sann & Howe Joe Disanto 87,000 sq.ft. retail (212)490 -1700 Coon ' Rapids Square ids Coon Rapids p Phoenix Mutual Life 47,000 sq.ft. retail Don Maurus (203)275 -5811 Southfork III Lakeville Westinghouse Credit 38,000 sq.ft. retail Steve Davis (412)393 -3238 Crosstown I Eden Prairie IDS Financial Services 29,000 sq.ft. office Kevin Abrahamson (612)372 -2493 Hayes Contracting Golden Valley First Trust N.A. 90,000 sq.ft. industrial James Ehrenberg (612)223 -7093 Norman Plaza III Bloomington Old Stone Real Estate 18,000 sq.ft. office Mike Kristan (206)882 -2299 Riverside Condominium Minneapolis Riverside Medical 40,000 sq.ft. doctor's condo Bill Davidson (612)337 -4690 Plh,man Building Edina Pinehurst Properties 1_,000 sq.ft. offc /retail Thomas Lohman (612)375 -1260 - OUSING and REDEVELOPMENT AUTHORITY COMMISSION MEMBERS: 2 LAWRENCE COMMERS, CHARMAN DUANE PRARE VIRGINIA SCHNABEL WADER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: July 12, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: ASPRE Ltd. (Boisclair) Housing Renovation Proposal We have received a preliminary appraisal of this proposal from Jim O'Meara, our bond counsel (see attached letter dated July 6, 1990). In Jim's opinion, the proposal is merely the tip of an analytical iceberg which may take a lot of consultant time and money; and which, on the other hand, may not even be politically acceptable to our City Council. (See attached letter from Arnie Gregory dated June 21, 1990.) In addition, we are facing a changing of the guard on our HRA legal counsel. I do not think it would be prudent to assign some of the development contract analysis work at this time until we get a clearer picture from the City Council and the HRA on how they wish to proceed with an HRA attorney. As a result, I am recommending that we delay proceeding with the analysis of this proposal until two things happen: 1. We get a clearer picture of the division of labor between our existing bond counsel, Jim O'Meara of Briggs & Morgan, our legal counsel, and Jim Casserly, our financial analyst. 2. I believe that this is an opportune time to adopt and implement an administrative cost deposit for analyzing tax increment assisted proposals. I have attached the draft for the policy statement which we had prepared earlier this year. In this case, I would recommend that the administrative fee be $7,500 in accordance with the fee schedule in Section V of the attached draft policy statement. That portion of the deposit which was unused for consulting fees could be refunded to the applicant. Once we have a clear idea of who the players on the team are going to be, we would inform Boisclair et. al. at ASPRE of our intent to require a deposit before proceeding with an analysis of their request. JR:ls EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (S 1 Z) 57 1 -3450 FRIDLEY, MN 55432 LAW OFFICES BRIGGS AND MORGAN PROFESSIONAL ASSOCIATION 8200 FIRST NATIONAL BANH BIIILDINO SAINT PAUL, MINNESOTA 68101 TELEPHONE (am) 881 -1816 TELECOPIER 1618) 882-4071 INCLUDING THE FORMER FIRM OF LEVITT, PALMER, BOWEN, ROTMAN & SHARE July 6, 1990 Jock Robertson Executive Director Fridley Housing and Redevelopment Authority Fridley Municipal Center 6431 University Avenue N.E. Fridley, Minnesota 55432 Rick Pribyl City Finance Director Fridley Municipal Center 6431 University Avenue N.E. Fridley, Minnesota 55432 Re: Can- American Realty Corporation /Bosclair Low /Moderate Income Housing Proposals Dear Jock and Rick: 2 -A I have a copy of the letter to Jock, dated June 21, 1990, from Mr. Arnie Gregory of Can - American Realty Corporation relating to the above - referenced proposals. Having reviewed that letter and having had some earlier conversations with Mr. Robert Bosclair, at his request I met this past Monday with Mr. Bosclair and his attorney, Mr. Kent Richey. Rich Martin of our office also attended this meeting, as I requested due to his expertise in the housing areas involved in these proposals. My purpose in writing is to outline for you my understanding of these proposals, based on Mr. Gregory's letter to you and on last Monday's meeting. Most of what has been represented I have simply assumed to be accurate, not having any means of independent verification. Here then is my understanding of these proposals: (1) Village Green is a 196 unit Section 8 subsidized housing project near City Hall which was developed in 1978 by and 41" 2270 MN WORLD TRADE CENTER SAINT PAUL, MINNESOTA 66101 (612) 291 -1216 2200 FIRST NATIONAL BANE RIIILDINO SAINT PAUL, MINNESOTA 66101 (912) 291-1=5 2400 IDS CVITZR MINNEAPOLIS, MINNESOTA 66002 19121 330.O661 2 -B P BRIGGS axD MORGAN Jock Robertson Rick Pribyl ,..� Page 2 July 6, 1990 which remains owned by Fridley Apartments Limited Partnership, of which Can - American is the managing general partner. (2) Village Green has had 100$ occupancy virtually since its completion. I am told that Can - American is a large national concern with considerable experience in the ownership, management and operation of housing projects. (3) Village Green was originally financed through Minnesota Housing Finance Agency assistance and, as such, is receipt required to maintain various reserve or residual accounts, now with sizeable captive balances. (4) Being a "mature" project of this type, Mr. Bosclair has and particularly the limited represented that the owners, partners, become more and more interested in selling the project, thereby converting it to market rate housing and enabling them to withdraw the significant reserves which have built up. The other factor which appears to be involved here is that most if not all of the tax in the original ,..� benefits to the limited partners syndication have either expired or diminished significantly. (5) In essence, if one assumes that the pressure to sell and Bosclair's proposal involves convert is great, Mr. preserving the low /moderate income housing of Village Green and capturing a presumed positive cash flow from ownership of Village public (that is, HRA) purchase and to assist other, as yet -to be identified low and Green moderate income housing rehabilitation projects within the City of Fridley. The procedure for establishing a be important fair market value for Village Green would an procedural step to be worked out. (6) Mr. Bosclair proposes that the HRA purchase Village Green bonds which would be through the issuance of HRA revenue to my inquiry, Mr. Bosclair insured by FHA. In response estimated the market value of Village Green to be somewhere between'$11,000,000 and $12,500,000. 4199 �1 2X BRIGGS wxn MORGAN Jock Robertson .-� Rick Pribyl Page 3 July 6, 1990 (7) The Section 8 contract for Village Green would have to be continued for the benefit of the new owner, the Fridley HRA. (8) The Fridley HRA would enter into a "management contract" with ASPRE, Ltd., a Minnesota corporation formed as a joint venture between Can - American and Bosclair Corporation. Pursuant to this contract, ASPRE would operate and manage Village Green for the HRA. By "management contract" I mean a contract recognized by the Internal Revenue Service as an acceptable non - equity safe harbor where certain tax - exempt financing has occurred. The basic rules of such a contract are that the original term and every renewal. term cannot exceed five years, that the HRA must be able to cancel the contract after each three year period, that the manager's compensation cannot be based on the net profits of the facility, and that at least 50% of the compensation must be based on some fixed fee arrangement. (9) Mr. Bosclair suggested that for the sake of financial feasibility the term of these revenue bonds would probably be in the neighborhood of 30 years. I want to emphasize at this point that, given the various aspects of these proposals, including the nature of the above - mentioned management contract, the HRA must recognize that it would be the owner and operator of Village Green on a long term basis, and possibly with the obligation to either operate the facility itself or find a new operator in the event that the arrangement suggested with ASPRE would be or might become unacceptable to the HRA. (10) Mr. Bosclair has suggested that Village Green currently pays approximately'$175,000 in real property taxes and that a positive cash flow could be derived from this project if publicly owned due to the fact that it would no longer be subject to such taxes. He recognizes that there might well be the requirement for payments in lieu of taxes (which he has suggested at 5 %), leaving a positive cash flow for the difference, assuming also that all of the operating costs and other expenses associated with these proposed transactions would first be paid out of that cash flow. 4199 2 -D " BRIGGS AxD MORGAN Jock Robertson Rick Pribyl Page 4 July 6, 1990 (11) The proposal is then to take that cash flow and devote all or a portion of it to the as yet to be identified low and moderate income housing rehabilitation projects in the City. These in fact would be low and moderate income housing projects, although not publicly owned, and Mr. Bosclair has also suggested that these be financed on a "conduit" basis through the issuance of multi - family housing revenue bonds (if passible, and new Minnesota legal requirements for obtaining the necessary allocation of bonding authority were made very restrictive by the 1990 Legislature) . They might also be assisted with federal tax credits. Neither of those programs would involve the credit of either the City or the HRA and at most would require your public participation on a "conduit," non - liability basis. (12) Mr. Bosclair suggested that he and Can - American might be willing to enter into suitable guaranties with the HRA which would insulate the HRA from financial risks due to actual losses from the operation of Village Green or at least minimize any such effect. This would remain to be �. discussed further .it appears. (13) It has also been suggested that the low and moderate housing rehabilitations would initially involve specified projects but might be open ended for a stated period of time to allow for additional housing, as identified, to be rehabilitated upon certain terms and conditions and upon subsequent agreement. (14) Mr. Bosclair has indicated that he has never had any ownership interest in Village Green or in Can - American. He has also suggested that he or his corporation receive a "placement" or a brokerage commission on the sale of Village Green to the HRA. We have suggested, however, that other arrangements not involving the HRA might be more acceptable to you. We find it surprising at first blush that ASPRE, involving Can - American as it does, could play an independent role in arranging a sale where Can - American is also part owner of the property and would, through ASPRE, be involved in the management after its sale. 4199 2 -E BRIGGS sxb MORGAN Jock Robertson Rick Pribyl Page 5 July 6, 1990 From a very broad legal perspective, we believe that most if not all of these proposals would be permissible if indeed the low/ moderate income housing objectives are met or fostered, either by way of preserving existing low and moderate income housing which would otherwise be converted to market rate housing or by rehabilitating blighted or otherwise substandard housing and converting that into low and moderate income housing. Obviously, such activities would in general be very appropriate for a housing and redevelopment authority from a legal standpoint. The issuance of tax - exempt bonds for the acquisition of Village Green by the HRA is also legally possible, assuming very generally that the HRA would be acquiring it for its ownership and operation and for the express purpose of maintaining existing stocks of low and moderate income housing and not for the purpose of acquiring "investment property." I would like to emphasize one possible effect of these proposals, if consummated. It is my understanding that Village Green is in the Center City tax increment district and redevelopment area. Mr. Gregory's letter indicates that Village Green was completed in 1978. That would put it very close to the time (May, 1979) at which the Center City TIF district was established, and I wonder whether the value attributed to Village Green is in the base of that district or is captured as TIF generating value, in other words, whether Village Green's property taxes are by and large already revenues, in the form of tax increments, which the HRA currently receives. If they are increments, there is first of all the question of what effect reducing that tax increment stream would have on the outstanding tax increment revenue bonds of the HRA (I think those are slightly less than $4,000,000 in principal amount and were issued in 1984 or 1985) and on the provision of appropriate amounts of debt service for the recent issue of the City's $9,445,000 of general obligation tax increment refunding bonds. In other words, there may be a concern about violating bond covenants, especially with respect to the revenue bonds, and perhaps more on the financial side whether or not you would adversely affect your ability to pay your recent refunding bonds. One possible solution would be to look at limiting the use of that cash flow for the other rehabilitation purposes for a term which would end in say 2001, at which point I believe the debt service on your recent refunding BRIGGS &xn MORGAN n Jock Robertson Rick Pribyl Page 6 July 6, 1990 2 -F I would also point out that if indeed Village Green is currently generating tax increment, that revenue would already in theory be possible to use to aid low and moderate income housing projects in the City, with appropriate amendment of your redevelopment and housing plans and subject to the bond covenant concerns mentioned above. In other words, there may not be a net gain of revenue to the HRA by doing this project; there may simply be the preservation and enhancement of low and moderate income housing. I do not mean to suggest that any or all of these goals are more or less important or that the project is unworthy of consideration simply because you may already be receiving the increment flow from Village Green. I know that you have requested Mr. Bosclair to establish a $7,500 deposit against your costs in examining these proposals. He requested at Monday's meeting whether it would be possible to have some written indication from the HRA Board of its relative interest or non - interest in exploring these proposals further. Any positive response by the Board would, of course, be nonbinding, and he understands that but he indicated that he feels it necessary to have some official expression of City and /or HRA interest to help him persuade some of the other potential participants of the possibilities of going forward with the concept. Please let me on this. I would reviewed the above most appropriate. JPO:bjs 4199 know of any questions or comments you may have suggest that you give me a call after you have to confer on what course of action you believe I will await to hear from you. ou very tru y, W L., mes P. O'Meara �1 ® Can - American 1117 Marquette Avenue Realty Corporation Suite 200 -G Minneapolis, Minnesota 55403 2 G (612) 332 -5544 June 21, 1990 Mr. Jock Robertson Executive Director Fridley Housing and Redevelopment Authority 6431 University Avenue N.E. Fridley, MN 55432 RE: The Preservation of Existing and Creation of New Affordable Housing Stock in Fridley, MN Dear Mr. Robertson: ASPRE, Ltd. is a Minnesota corporation that was formed pursuant to our recent discussions in connection with pursuing the preservation of existing and the creation of new affordable housing stock in Fridley. ASPRE intends to maintain existing housing through cooperation with the local Housing and Redevelopment Authority (HRA) and jointly create new or renovate old run -down housing into new modernized housing for low to ,..� moderate income individuals. ASPRE is a joint venture between Can - American Realty Corporation and Boisclair Corporation. The premise upon which ASPRE was created is really twofold: 1) The first premise surrounds the fact that most municipalities are experiencing, or have experienced for some time, a shortage of low to moderate income housing. Historically, this type of housing has been created under some type of government program and financed with the Minnesota Housing Finance Agency (MHFA). The MHFA financed deals created developer benefit through syndication because they were "tax loss" deals. There was no cash flow to the owners because of the severe reserve accounts required by the MHFA. The MHFA financed projects have a limited distribution on cash flow, with the balance of the cash flow going into a residual receipts account. For example, if a project produces $200,000 of cash flow after debt service and the limited distribution is $40,000 (as is most often the case) then, $160,000 goes into the residual receipts account and is not immediately available to the projects owner. It does, however, accrue to the benefit of the owner. An additional negative to not getting the cash is the phantom income this creates to the owner on which they have to pay taxes. 2 -H Mr. Jock Robertson June 21, 1990 Page 2 The reason this limited distribution is important to understand is because the MHFA has been experiencing owners with large residual receipts reserve balances prepaying their mortgages. Then the residual receipts reserve balances are applied to the outstanding debt allowing the project to become financed conventionally at market rates. Hence, the problem, when the projects are financed conventionally at market rates the MHFA loses its control and the municipality loses good quality affordable housing for its residents. In an effort to stop the prepayment practice, the MHFA has introduced what they call the Redefined Equity Program. This program allows owners to collect 100% of cash flow as long as they continue to meet certain reserve percentages. However, the problem still remains. Investors in real estate are particularly interested in these MFHA financed projects because of the high level of maintenance required by the Agency coupled with the high level of reserves that are available when the property is purchased and the mortgage is prepaid. Since there is such a high level of interest, the general partners of these partnerships receive numerous offers which the limited partners are finding more and more attractive. Many of these projects have been syndicated and the limited partners have enjoyed the tax benefits over the years. Rather than get the cash flow from redefined equity on an annual basis, these limited partners would rather sell the property and get back their original investment to invest in something new. Therefore, as offers to purchase come in, each property will eventually be sold with the affordable housing aspect being eliminated. 2) The second premise surrounding the ASPRE creation is the fact that the economic incentive to create new affordable housing for low to moderate individuals has been eliminated by the Reagan and Bush Administrations. Therefore, the demand continues to grow and the supply continues to dwindle causing a future catastrophic housing shortfall. In light of the above, the time for the ASPRE concept to come "full circle" is now. There are really three major ingredients needed: 1) A cooperative HRA concerned with the housing stock availability for its residents. 2) An existing project that the owners want to sell that is currently providing affordable housing for low to moderate ,.� income individuals. 2 -1 Mr. Jock Robertson June 21, 1990 Page 3 3) A project that is in need of much needed repair that can be purchased and renovated into modernized housing for the long waiting list of individuals needing affordable housing. Village Green Apartments is a 196 unit project located in Fridley. The project is currently owned by Fridley Apartments Limited Partnership. The project was built and syndicated in 1978 and has operated at loot occupancy since its completion. Can - American, through an affiliate entity, is involved in this project and has been receiving numerous offers and tremendous pressure from the limited partners to sell the project. ASPRE proposes that the Fridley HRA buy and own the project using ASPRE as agent. ASPRE will be responsible for negotiating a sale with Fridley Apartments Limited Partnership. The funds will be made available by the HRA using their tax - exempt bonding authority to issue Essential Function Bonds. The bonds will be appropriately rated using the strength of the existing HUD Section 8 Housing Assistance Payment Contract which stays in place and has a remaining life of approximately 25 years. ASPRE will be responsible for securing non - recourse financing through FHA or FNMA. All of the working capital guarantees and operating deficit guarantees will be negotiated and provided for by ASPRE. Since the HRA is not in the property management business, the property will be managed by an affiliated entity of ASPRE. Due to the HRA's power of ownership, the property is subject to Payment in Lieu of Taxes (PILOT). The HRA will agree to guaranty this stream of cash flow from real estate tax savings to the assistance of a new affordable housing project. ASPRE, with the concurrence of the HRA staff, will agree to purchase and renovate an existing market rate project of equal size to Village Green. ASPRE will obtain sufficient financing using the benefit of the PILOT cash flow stream. ASPRE will either obtain private activity tax - exempt bonds with automatic tax credit authority or an allocation of tax credit from the state tax credit pool. Both the allocation of tax - exempt revenue bonds and tax credit are Federally legislated programs designed to promote affordable housing. These tax credits will provide the equity necessary to finance the proposed acquisition and renovation. ASPRE will then manage the property with a commitment to maintain it as an affordable housing project for 25 years. Through the implementation and successful completion of this r"1 proposal we have accomplished two major goals. First, we have proven that the public and private sector can work together to Mr. Jock Robertson !� June 21, 1990 Page 4 provide a much needed resource. Second, and more importantly, we have guaranteed the preservation of existing affordable housing and created a like amount of the same type of housing for the waiting list of individuals depending on this type of shelter for their families. With your help, we have identified the existing project which we would like to renovate. Also, we would like to begin to negotiate with the existing Partnership of the Village Green project before they consummate a deal with another buyer. However, this negotiation and assembly cannot begin until we receive the green light from the HRA. Please send me written confirmation of the HRA Commitment to proceed and the approval process agenda you feel is necessary for this transaction. I look forward to your review and comment and I thank you for your consideration. Since Arni J. Gregory AJG:bh cc: Gary Carlson, Sr. Bob Boisclair Dick Bienapfl 11 ' 2 -J 2 -K THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY POLICY STATEMENT TAX INCREMENT FINANCING (TIF) ADMINISTRATIVE COSTS SECTION I. PURPOSE This Policy Statement establishes a policy and a procedure to cover costs associated with processing a TIF request. SECTION II. INTENT Inquiries are being received regarding the appropriateness or availability of TIF monies for a project. The HRA does not employ staff who are technically knowledgeable on TIF's. It is the intent of this policy to provide expert assistance at no cost to the general public. SECTION III. INQUIRIES Subd. A. General Inquiries Staff personnel shall respond to general inquiries. This assistance shall be general in nature for which no detail or specialized knowledge is required. Subd. B. Specific Inquiries Once information or assistance is requested requiring knowledge and /or assistance of a fee - basis consultant to the HRA, Section IV of this Policy Statement becomes effective. SECTION IV. PROCESSING SPECIFIC INQUIRIES THROUGH AUTHORITY DECISION Subd. A. When a point is reached that 1) consultant assistance is required, or 2) an inquiry turns into a written proposal for Authority consideration of a TIF application the applicant shall be notified that a fee shall be paid to the HRA. ro Subd. B. No further activity shall occur until the fee is paid. Once the fee is paid, the process shall continue. Subd. C. Upon the discontinuance of the process or a final determination by the Authority on an application, any unexpended monies shall be returned to the applicant. SECTION V. FEES Subd. A. The initial deposit amount shall be: 1) For a request of $500,000 or less, $2,500; 2) For a request of $500,000 to $1,500,000, $5,000; 3) For a request of $1,500,000 or more, $7,500. Subd. B. At any time the amount of deposit falls below $1,000, the applicant shall deposit, within ten (10) days of written notification, an amount to restore it to the initial deposit amount. SECTION VI. USE OF FEES Subd. A. Fees shall be used for the cost of securing appropriate consultants to assist the HRA in processing the inquiry or application. Representatives of appropriate consultants include, but are not limited to, HRA Attorney, Planning Consultant, Development and Financial Consultant, Bond Counsel, Traffic and other consulting engineers. The determination and use of HRA consultants is and remains the exclusive determination of the HRA. Subd. B. To all Consultant's invoices, there shall be added a 5% administrative charge for the processing of such invoices. Subd.-C. Upon completion of any inquiry or decision on a TIF application, the HRA shall render a total of all claims and charges paid. The HRA shall refund any outstanding balance. Subd. D. If TIF is approved then the applicant shall be reimbursed its fees from bond proceeds or tax increments but only if such reimbursement is statutorily authorized and financially feasible. z -L - OUSING and REDEVELOPMENT AUTHORITY 3 COMMISSION MEMBERS: - -LAWRENCECOMMERS,CHARMAW MANE PRARE VEGINIA SCHNABEL WALTER RASMUSSEN JOHN MEM CITY OF FRIDLEY DATE: July 12, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Proposed Auto /Service Mall and Full Service Restaurant on the Alvan Schrader Property Alvan Schrader is proposing to construct a 26,300 square foot auto /service mall and a 4,000 square foot full service restaurant on his property located in the northeast corner of 73 1/2 Avenue and Highway 65 (see attached site plan and rendering). Mr. Schrader will need to file a rezoning application to rezone a portion of the property from M -1, Light Industrial, to C -3, General Shopping Center District, as well as file a special use permit for automotive uses in a C -3 district. The proposed project would require the purchase of 36,000 square feet from Royal Electric for $77,000. It would also require 20,000 square feet of City owned land. At this time, the Council has not considered selling this land (see attached map and memo from John Flora). Further, the City has informed the developers that the City is not inclined to condemn frontage road right -of -way through the trailer court to the north. The property is located in the Onan 'Tax Increment Financing Redevelopment District No. 10. Mr. Schrader has petitioned the HRA for assistance on land assembly and cost writedown. The City Council was individually polled on this proposal. All were negative on TIF assistance; and because the City land may be needed for a City project, approval of sale is not likely at this time. If the HRA wishes to proceed, we recommend that you consider a 2- 3 year pay -as- you -go grant of an amount yet to be negotiated. Based on an estimated market value of $1,700,000, the pay- as -you- go grant would range from $85,000- 136,000 following the 5 -8% precedent of Northco. JR:ls M -90 -482 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY 12) 671 -5450 FRIDLEY, :AVE. MN 55432 a �v�it� a "' N 0 o O QED} a ►! a�W �n�cmo0C� }0r 0 a) o O) 20 -c ocaav�wQ00) —L� 3 N at= a)'- 0) c" a a) O a) C a z 3 �tD-�v �c- oa)poN.c_Na)o0 =�. 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C) ED ,aU =:3UU CRYSTAL. MN THE SCHRADER BLDG. TRAPP ROAD BLDG. BLAINE. MN CENTENNIAL SQUARE MOBILE HOME PARK CARE FREE SELF - STORAGE EAU CLAIRE, WI OAK RIDGE VILLAGE MOBILE HOME PARK SIOUX FALLS, SD SILVER GLEN MOBILE HOME PARK AND SALES BRAINERD, MN STONYBROOK SOUTH MOBILE HOME PARK AND SALES NC FIELD, MN SCHRADERFARMS HART CUSTOM HOMES, INC. FRIDLEY CRYSTAL 3 -B A. L. S. properties Real Estate And Investments 5501 Lakeland Avenue North, Crystal, MN 55429 (612) 535 -2840 Alvan L. Schrader, Owner April 19, 1990 Mr. Jock Robertson, Community Development Director City of Fridley, Municipal Center 6431 University Avenue Northeast Fridley, Minnesota 55432 Re: Proposed 26,300 S.F. Auto /Service Mall and 4,000 S.F. Full Service Restaurant Dear Mr. Robertson: Enclosed are the preliminary site plan, three - dimensional rendering and total project cost breakdown provided by our representative, Construction Project Management, Inc. This is for a project we would like to construct, own and manage at the Northeast quadrant of Highway 65 and 732 Avenue Northeast in the city of Fridley. I am enclo- sing one full-sized set and one set reduced to 82" x 11 ". The primary function of the Auto /Service Mall is to pro- vide basically all of the ancillary services the automo- bile and light truck owner needs to maintain his or her vehicle at a cost well below what automobile and light truck dealers are able to provide. These services include, but are not limited to the following, to wit: Tires; lube, oil and filter changes; wash; domestic and import auto parts; brake, exhaust and shocks; glass replacement; body work; transmission repair; cellular telephones; auto insurance agencies; detail shops; stereo radios and speakers; auto rental; clutch repair; rustproofing; auto tool supplies; alignment service; auto cleaning services; trailer hitch and winches; mini auto dealers; radiator service; and other somewhat related enterprises such as dune buggy, motor scooter and motorcycle sales and service. We anticipate that the full service restaurant shall also provide a breakfast service and will complement the Auto/ Service Mall in addition to serving the area's residential, commercial and industrial communities. The present vacant land to be included in the project are April 19, 1990 3 -C Mr. Jock Robertson Page 2 parts of Lots 1 and 2, all of Lots 3, 4, 5, 6, 7, 8, and 9 of Block 1 Central View Manor and all of Lot 3 Central View Manor 2nd Addition. This is based on acquiring from the owner, the City of Fridley, the use- - able parts of Lots 1 and 2 and all of Lot 3 of Block 1 Central View Manor. The proposed project will add greatly to the city's tax roll. The real estate taxes payable in 1990 are $9,032 for all the land described above. There are, of course, no taxes payable on the city -owned land. The fu- ture taxes from the completed project could be calculated by the City Assessor. There have been no soil borings taken on any of the property as of today, however, we anticipate little or no soil correction problems. Borings and accompanying report will be provided the city as part of the prelim- inary development of the project. We see this project as a first step to urban renewal and cleanup and upgrade of the somewhat blighted area. The project should raise nearby property values and could act as a catalyst for other developers to buy out the nearby junkyards, etc., and possibly provide shopping centers, apartment buildings and office buildings. The increase in property values would be an incentive for the present owners of these less attrac- tive enterprises to sell their properties and it would, because of cost, keep other such businesses out. The lack of a completed frontage road is a major concern to us and our prospective tenants, however it it our understanding that if the fron- tage road could be extended through to Fireside Drive that the cross - throughs at Highway 65 and Fireside Drive and at Highway 65 and 732 Avenue Northeast would be eliminated. This is probably even of greater concern to us and our prospective tenants. We would like to have a meeting with the appropriate city officials on the nearest possible date to discuss this problem further. Our time frame for this project is to move forward as fast as possible. We would like to be under construction in September, 1990, with opening in early Spring, 1991. At this time we request application for Tax Increment Financing from the City of Fridley to help us with the development of the project. Part of these funds are necessary for us to acquire the city -owned property and Lots 7, 8 and 9 of Block 1 Central View Manor owned by L & G Properties. The balance of the funds are needed to reduce our first mortgage amount to a level more attractive to our permanent lender. Auto /Service malls are more difficult to finance than other retail malls because of their relative newness, even though their success has been proven over and over again throughout the country. We believe there is a strong need for an Auto /Service Mall in the Fridley area. There is nothing like this in Fridley or the other surrounding communities. In the southern suburbs of Eagan and Burnsville they have been successful in locations with low population densities. I would relate the Auto /Service Mall in Hopkins to this site as far as the demographics are concerned, however, our proposal is a larger and more diversified project. April 19, 1990 Mr. Jock Robertson 3 -D Page 3 The city's participation through some form of Tax Increment Financing would insure the bringing to fruition the proposed project. At this time we are unsure of which T.I.F. program would be in the best inter- ests of the project and would like to keep that part of our request at abeyance for a short period of time; however, if this would hold up our application, please let us know as soon as possible._ If there is anything further we can provide the City at this time, please let us know. Your help with this matter is greatly appreciated by us. Sincerely, A.L.S. PROPERTIES A40 c Alvan L. Schrader, Owner? ALS /jct Encl. rll� HIGHWAY 85 NORTHBOUND LANE - I� _ 3 -E N I ! e e EAST SERVICE ROAD q m. 0m _ a way / ` ° — o a i Z ;• m L; a — i y rn - -� r — N ' 7 — in i c A. ! I i w it a = G O t C -0 o � o N m m 0 m .. A 3 a i 0 i i i 1; �ii 4a AA R L if Big L- 2E6 EE EE EE �. PROPOSE " DEVELOPMENT FOR. 2 BY: "^" "� "a - ---- 8 -90 A1,S, PROPERTIES C P M µ`° °""' "" ARCHITECTS w NORDBY &ASSOC., INC_. FRIDLEY , MINN. DAU ova w.wr,�w 3 -F 3 -G :PM Contractors - Developers _instruction Project Management, Inc. April 16, 1990 Construction Managers Auto Service Mall (26,300 s.f.) Full Service Restaurant (4,000 s.f.) Highway 65 & 73z Avenue Fridley, Minnesota PROJECT COSTS Land (160,500 s.f. @ $2.45/s.f. Average) $ 393,225 Special Assessments (Paid in Land Value) 5,000 5 , Soil Borings & Reports Boundary & Topographical Survey & Lega I Description 3,000 52,500 Architectural Drawings & Specifications Grading, Drainage & Site Utility Plans & Staking of Grading, Building & Utilities 70500 Structural Engineering (In Architectural Costs) 15,000 Mechanical Engineering 10,000 Electrical Engineering Landscaping & Lawn Irrigation Drawings & Specifications 4,000 2,000 ins & Specifications Printing & Mailing Costs 4,000 :hitectural & Engineering Inspections 3,000 Project Appraisal 15,000 Legal & Closing Costs 81000 Title Insurance Costs Mortgage Broker's Loan Point @ 1% of $2,000,000 20,000 20,000 Interim Loan Points @ 1% of $2,000,000 40,000 Permanent Loan Points @ 2% of $2,000,000 100,000 Interim Construction Interest Leasing Fees (30,300 s.f. @ $2.50 /s.f.) 75,750 Taxes on Land During Construction 12,500 5,000 Soil Compaction Tests & Inspection Auto Service Mall Building Construction Cost - Shell Only (26,300 s.f. @ $29 /s.f.) 762,700 Auto Service Mall Tenant Improvement Allowance (26,300 s.f. @ $12 /s.f.) Shell Only (4,000 s.f. @ $60 /s.f.) 315,600 240,000 Restaurant Building Construction Cost - Restaurant Tenant Improvement Allowance (4,000 s.f. @ $20 /s.f.) 80,000 Site Grading & Asphalt Pavement Removal 50,000 30,000 Landscaping, Lawn Irrigation System & Hardscape 67,000 Bituminous Paving & Concrete Curb•& Gutter 13,000 Utility Connection Fees 35,000 Contingency Carrying Costs During Rent -up Period 45,000 77,265 Construction Manager's Fee (5% of $1,545,300) -0- Broker Fees Developer Fee @ 1.5% of Project Cost (1.5% of $2,511,040) 37,665 � $2,548,705 TOTAL PROJECT COST 14618 Oakwood Road - Minnetonka, MN 55345 - (612) 935-5870 C Iry Of FK�b.c6Y ARoNm s coop QFr, �ficAelE� .....'.� ,° c r: N� wL= fin! oiry ,Tp r ?oo % yA.Z .s . �ROP��►-rir -.1 /9� DOiJ SQ F7 I FT X. N � IG7 y M y f i 3 -H 0 _ r 4 -A ROUSING i REDEVELOPMENT AUTHORITY MTG., APRIL 18. 1990 - PAGES 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 KRA 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. MOTION 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. UpoNRPERSON COMMERS DECLARE THE MOTION CARRIED �BYEA VOTE OF 44- CSAI -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. M] EXHIBIT II -B • /!. •, �, `• . �� , • �. ±� •: ! •'•` �- 0 . , tC O: ~ V a• Hwy. / •± Ate• isle .j Lf ' � • t � �• .� .. r• ./:�t �� ►' ve • • '�tN•a� " . /°' sl irk •� ' ,• '•• `I . ? � • � •., . t � •; S . •�•,�• , � �''�• ' I, •fir/ • . �.•� ` •.` JI 1 f ,i ,y � i � �rG� ' LE, .�1 f � ...: �'rP- I .. :� ��•` :• I•,. • '`•:.� of t3f. /• �s 7s. • t' / .o•.� wt •' . •,EL I I / • i1 r 'i • •t; ; • t r Of V Mc J 67 AVE. N. E. �•i'7 ' ' •• W W R/V r •tl •, i •l 2'••.�•t X04 EK �- w 1• r 0 66TH 'AVE. N. r are avower~, ,.,. •� c ~• .� (,� , . i ' , i a3 . PLAT 4- Fi i •� „ f ` _ _.I I - C CREEK .T 1 - L l..n.. t 1 I_.t.. - ~�� v %-_- - -w- iTi;TE'- 'T--- Af9• --+ WG WAW- M or, 1 j I'v "•� • S. 1 1• t ' �'+, SYL• lap : EYtAt�r '• r XS OPLAT CIO IT n y PLAT 8 f �. •�vA •�v r i P�+'tt.1 AUCEGE j;�YY • . EL LITE • r. ANE , ...•� • tF li: •� - I �.� �/T � • n`, ' •I~ • • f �, t•3• .: • .�, W � ` a \�I 1 rr ' • .. �, • •,ltf' �f azw, A00 ?,ION W MW L LAZE ! 4'fREUiiY .ORIVE . -' i I t� •tr� �.r • •/ 1 •� f %tit: ' Or•.v :..... / / f f I f °t , a�a V a ° of , � • i t.. f / Sy <Iyh f �� .• .' �_ ALUID k ORS �• r t2 �l `LAK � • "T� �r _ r Existing Center City Tax Increment District 8 Proposed Tax Increment District # 11 FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY HRA COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. RESOLUTION APPROVING REDEVELOPMENT PROJECT AND TAX INCREMENT FINANCING DISTRICT PLANS BE IT RESOLVED by the Board of Commissioners (the "Board ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "HRA"), as follows: Section 1. Recitals. 1.01. It has been proposed that the HRA enlarge its Redevelopment Project No. 1 (the "Redevelopment Project "); amend the Modified Redevelopment Plan for the Redevelopment Project; amend the Tax Increment Financing Plans for Tax Increment Financing District Nos. 2 through 10 currently existing within the Redevelopment Project; and establish a new Tax Increment Financing District No. it within the Redevelopment Project and approve the related tax increment financing plan (collectively, the "Plans "); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 through 469.047 and 469.174 through 469.179; all as reflected in that certain document entitled in part "Amendments Relating to Redevelopment Project No. 1," dated July 23, 1990, and presented for the HRA's consideration. 1.02. The Board has investigated the facts relating to the Plans and has caused the Plans to be prepared. 1.03. The HRA has performed all actions required by law to be performed prior to the adoption and approval of the Plans. The HRA has also requested that the Fridley City Council hold a public hearing on the Plans and that the Fridley Planning Commission provide written comment on the Plans. Section 2. Findings for the Adoption and ARRroval of the Plans. 2.01. The HRA hereby finds that Tax Increment Financing District No. 11 is in the public interest and is a renewal and renovation district, as defined in Minnesota Statutes, Section 469.174, Subdivision 10a (Laws of Minnesota 1990, Chapter 604, Article 7, Section 6), because the following conditions are met 3084 4 -C 4 -D and are reasonably distributed through the District: (1) parcels consisting of at least 70% of the area of said District are occupied by buildings, streets, utilities, or other improvements; (2) 20% of the buildings are "structurally substandard" (within the meaning of Minnesota Statutes, Section 469.174, Subdivision 10(b)); and (3) at least 30% of the other buildings require substantial renovation or clearance to remove existing conditions such as or giving rise to incompatible uses and land use relationships, consolidation of a suitable site for commercial development, and proper traffic management and safety planning. 2.02. The Board further finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary; that the Plans conform to the general plan for the development or redevelopment of the City as a whole; and that the Plans will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development of the Redevelopment Project and of Tax Increment Financing District No. it by private enterprise. 2.03. The Board further finds that the Plans are intended and, in the judgment of the Board, their effect will be, to promote the public purposes and accomplish the objectives specified in the Tax Increment Financing Plan for Tax Increment Financing District No. 11 and the Modified Redevelopment Plan for Redevelopment Project No. 1. Section 3. Approval and Adoption of the Plans; Other Matters. 3.01. The Plans, as presented to the HRA on this date, are hereby approved, established, and adopted; provided that the foregoing approval of the portion of the Plans consisting of the tax increment financing plan and district is conditioned upon approval thereof by the City Council following its public hearing thereon, but upon such approval staff of the HRA shall request the Anoka County Auditor to certify the new tax increment financing district. Adopted by the Board of Commissioners of the Fridley Housing and Redevelopment Authority this 19th day of July, 1990. Commissioner moved the adoption of the foregoing resolution. The motion for the adoption of the foregoing resolution was duly seconded by 01 !�, 3084 4 -E and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: '� 3084 CERTIFICATE I, the undersigned, being the duly qualified and acting Executive Director of the Fridley Housing and Redevelopment Authority, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes of a duly called and regularly held meeting of the Board of Commissioners thereof held on July 19, 1990, with the original minutes thereof on file in my office and that the same is a full, true, and correct transcript thereof insofar as said minutes relate to the tax increment and related actions referenced therein with respect to the HRA's Redevelopment Project No. 1. WITNESS My hand officially and the official seal of the HRA this day of , 1990. Executive Director Fridley HRA ( SEAL) �\ 3084 4 -F A FROM: City of Fridley Engineering Division TO: Honorable Mayor and City Coencil City of Fridley 6431 University A+eaue N.E. Fridley, MiRaesota 55432 DATE: JULY 15, 1993 CITY OF FRIDLEY PUBLIC YOLKS DEPARTMENT 6431 UNIVERSITY AVENUE N.E. FRIDLEY, MINNESOTA 55432 LAKE POINTE QEVL OPMENT MAINTENANCE PROJECT 1191 STATEMENT OF YORK RE: Estivate No. 3 Period 6 -15.91 to 7=15-91 FOR: TALBERS LAVN t LANDSC 111 IILSHIRE DRIVE MINNETONKA, MN. 55343 ESTIMATED UNIT QUANTITY THIS TOTAL .:GMT.'-.ACT ITEM QUANTITY PRICE UNIT ESTIMATE TOTAL AMOUNT Maintenance Services 1.18 32,851.18 LUMP SUN 1.143 1.429 14,178.58 TOTAL 0 may= Original Contract Amount Contract Additions Contract Deductions Revised Contract Amount Value Completed To Date Amount Retained To Date (511 Less Amount Paid Previously A!*WIII DUE THIS ESTIMATE :3z,sss.ss :s.se se. es $32,858.08 !14,878.58 $783.92 $8,916.44 $4,456.12 CERTIFICATE OF TI.E CONTRACTOR I hereby certify that the cart performed and the materials supplied to date under the terms of the contract for this project, ani all authorized changes thereto, have an actual value under the contract of the amounts shown on this estimate (and the final quantities an the final estimate are correct), and that this estimate is just and correct and no mart of the 'Amount Due This Estimate' has been received. 87 Date Contractor's Authorized Representative (Title) CERTIFICATE OF THE ENGINEER I hereby certify that I 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 MOM, INSPECTOR 11*�. 1PPRPAGE1`AS 1PMCrAGP DPAGErAZPP Date RespectfallY Submitted, John 8. Flora,P.E. Public Norts Director 5 -A CLAIMS (AT MEETING) A INFORMATION ITEMS Engmeenng f Sewer Water Parks Streets Maintenance MEMORANDUM - TO: Jock Robertson, Community Development Director PW90 -261 FROM: John G. Flora; Public Works Director DATE: June 29, 1990 SUBJECT: Moore Lake Commons Area Replat I noted your June 28 memorandum, subject as above, where you indicated that S.E.H. did not follow the proper MSAS construction guidelines at the time this area was originally platted in 1988. The actual situation that occurred at the time was the road was laid out based upon acceptable procedures for MSAS streets. The design for the road for the realignment of Rice Creek Road between Central Avenue and Highway 65 was initiated at the same time as the developer was acquiring property and subdividing it to support his development plans. One of the preliminary plans for East Moore Lake Drive were submitted to MnDOT for review and approval, MnDOT identified the need to change the radiuses as they were implementing a 300 -foot radius requirement for MSAS streets. The City also incurred the same issue at that time when we were laying out the University West Service Drive between 83rd Avenue and 85th Avenue. As a result of the MnDOT requirements, the curves on East Moore Lake Drive were reestablished utilizing the new radiuses and as such, it required a changed in the designated right -of -way for the streets. This information is provided to further explain the issue as your original memo may be misinterpreted. JGF /ts Attachment cc: William W. Burns W 7 C1iYOF ® COMMUNITY DEVELOPMENT 7 -A DEPARTMENT C1rOF FJQMH MEMORANDUM DATE: June 28, 1990 TO: William Burns, City Manager FROM: ;�: q T Jock Robertson, Community Development Director Barbara Dacy, Planning Coordinator Clyde Moravetz, Engineering Assistant SUBJECT: Moore Lake Commons Area Replat LS-EH, the City's consultant on the East Moore Lake. Drive street project, did not follow the proper M.S.A.S. construct on guidelines at the time this area was originally platted in 19881.. The road was constructed in compliance with the proper M.S.A.S. standards; however, the plat was drawn incorrectly. The plat needs to be redrawn to correct the right -of -way location and the location and descriptions of the bikeway /walkway easements and the drainage and utility easements abutting the roadway. A replat of the area will be advantageous to both the City and the developer. Without the replat, keeping track of the new easements (there would be at least ten) would be an administrative nightmare. The plat would also correct existing easement description errors drafted by the now non - existent Suburban Engineering. In fact, the developer could not record the original 1988 plat because of the various description and title difficulties. As a temporary solution, the City eventually passed a Surveyor's Certificate of Correction in 1988 which enabled the developer to record the plat. In consultation with the surveyor for the Moore Lake Commons area, we have determined that the City could be responsible for approximately $2,000 of the $6,700 to replat the property. You proposed that 80% of the costs be paid from the Capital Improvement Street Fund and the remaining 20% to be paid by the Housing & Redevelopment Authority. The City Attorney's office has advised us that we can pursue a claim against SEH to recover the City's costs. Unless otherwise directed, we will surveyor to proceed with replatting City's costs as outlined above. We office to recover our costs from SEH. expect to see vacation requests for agendas. � BD /dn M -90 -452 work with Applebaum and his the property and charging the will work with the Attorney's The City Council should also erroneous easements on future OUSING and REDEVELOPMENT AUTHORITY 8 COMMISSION MEMBERS: . -LAWRENCE COMMERS, CHARMAN DUANE PRARE rR ONIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: July 12, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: TIF District No. 11 Status As we go to press, Rick Pribyl and I plan to meet with the Anoka County Auditor concerning the administrative procedures for assigning the tax increment revenue between the original pre -1979 TIF District No. 1 and the proposed TIF District No. 11. We hope to have an update on this question at the time of the HRA meeting. JR:ls M -90 -488 Casserly Molzahn & Associates, Inc. 215 South 11th Street, Suite 200 - Minneapolis - Minnesota 55403 Office (612) 342 -2277 - Fax (612) 332 -4765 M E M O R A N D U M TO: City of Fridley HRA Jock Robertson, Executive Director FROM: James R. Casserly Mary E. Molzahn DATE: July 1, 1990 RE: Financial Assistance to Pappy's Food Company Concern has been expressed regarding the method of providing financial assistance to Pappy's Foods. Pappy's Food Company has �., requested that the HRA provide a lease deposit or lease reserve. This is necessary so they can secure lease financing and have the necessary equipment to operate their business. Providing a lease reserve is simply another form of providing security so that a business can meet the goals of the HRH's development program which are simply to increase employment, increase the tax base, eliminate blight and provide for development and redevelopment. A number of authorities have provided security arrangements so that businesses would develop or expand within their jurisdictions. The Minneapolis Community Development Agency has a common bond fund program which provides financing for capital assets that are secured by tax increment reserves. The MCDA has also used a tax increment reserve to secure multi - family housing bonds. For that project tax increment is captured on a yearly basis and then released if there is adequate debt service to make payment on the revenue bonds. - The City of St. Paul has its Port Authority which has financed dozens of projects with its bond program. - The City of Blaine has financed several businesses with a common bond fund which also uses tax increment as part of its reserve. 9 -A Page 2 Mr. Jock Robertson July 1, 1990 The Fridley HRA in the early 1980's authorized the development of a bond fund which would have relied on tax increment to provide security and credit enhancement to businesses that would locate in the HRA's project area. Piper Jaffray was designated as the underwriter for the program while O'Connor and Hannan was designated as bond counsel. In order to make bond programs work a number of financings have to be accomplished. There was not enough demand for the Fridley program to be cost effective. As a result while Fridley's program was authorized, it was never really initiated. Pappy's Food Company's request is simply a variation of a security arrangement or credit enhancement. The Authority's reserve is obviously at risk and care should be taken to minimize the risk as much as possible. If Pappy's Food is successful, the Authority not only receives back its money but also the earnings that accrue. If the project is unsuccessful, the Authority clearly knows the amount it has at risk. If you would like any further information, please give a call. JRC, MEM /db cc: William Burns Richard Pribyl David Newman W - OUSING and REDEVELOPMENT AUTHORITY 10 COMMISSION MEMBERS: .'LAWRENCECOMMERS,CHAIRMAN OtJANE PRAIRIE VIRGINIA SCHNABEL WADER RASMUSSEN JOHN MEYER CITY OF FRIDLEY r '1 DATE: July 12, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: 57th Place Clean -up Status We have reviewed the documents on file with the Pollution Control Agency concerning the status of the agreement between the Pollution Control Agency and Rapid Oil for corrective action design. It appears that the contamination is contained mostly on site and can be mitigated by pumping and treating ground water for several years. Based on this information, we can anticipate that the letter will be sent to Rapid Oil within the next several weeks and that Rapid Oil, in turn, will be back to the City Council for action on their request for rezoning and a special use permit to rebuild their existing facility. Staff has prepared an overall redevelopment sketch plan for the south University Avenue "Gateway" in the vicinity of 57th and University. The plan is currently being internally reviewed and is scheduled for review by the HRA at the August meeting. At the same time, Winfield Development has indicated an increasing level of interest and financial capability to proceed with the project as originally outlined in late 1988 (see attached outline). Staff plans to proceed as quickly as possible to solidify the overall redevelopment agreement and to obtain the necessary financial data and pledges of letters of credit so that the HRA may be able to determine whether it wishes to proceed with the redevelopment agreement with Winfield Development and acquisition of the subject property. JR:ls M -90 -487 EXECUTIVE DIRE CTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. 012) 671 -3460 FRIDLEY, MN 55432 OUSING and REDEVELOPMENT AUTHORITY 10-A COMMISSION MEMBERS: -LAWRENCE COMMERS, CHAIRMAN DUANE PRARE VIRGNIA SCHNABEL WADER 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. 012) 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. 012) 571 -3460 FRIDLEY, MN 55432 EXT. 117 3. After the condemnation action has been commenced, the HRA 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 HRA will proceed with the condemnation and issue the Quick Take Notices. $owever, the Developer will be required to post a Letter of Credit or cash equivalent, with the HRA 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 HRA. 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 HRA. 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 HRA will have the following costs: a 10 -C 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 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 $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 BRA. 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 -- L. -- - - -- - - -- --- ti 58 ttL AVEAE 320& 4d X ZIW.- I --f P"4f- -,OK-LI .1 �4- &W 10 1 A $40-01 57 ttl6 AVE.N.E. 10-E Ld 2! LT II SITE NIFOR_MAT*_ 0 FT. - 2.62 AC. SITE A 114,18b SO: )o SO. FT' B=wG I STORY 10,9( 2 MAY 8,400 SO- FT' % COV. TM 191111111.300 SO. FT. -162 pARKM (2.611000 So. FT. z jjq RIO'D. PROVIDED =,124 STALLS -e-2k :ALE 1*: 30W DRIVE-UP TELLER AREA) z cc J L z O w )I- w w > -j w LU tr All 'Cc) u, Cc c u IL �08 u 3 ui z 0 S > Ld 2! LT II SITE NIFOR_MAT*_ 0 FT. - 2.62 AC. SITE A 114,18b SO: )o SO. FT' B=wG I STORY 10,9( 2 MAY 8,400 SO- FT' % COV. TM 191111111.300 SO. FT. -162 pARKM (2.611000 So. FT. z jjq RIO'D. PROVIDED =,124 STALLS -e-2k :ALE 1*: 30W DRIVE-UP TELLER AREA) z cc J L z O w )I- w w > -j w LU tr All A DEC- 07 -198 19:02 T- CROSSTOWN BLAINE #594 -02 9ialne a Ham lake • St. Francis December 7, 1988 Mr. Edward C. Bubany Winfield Developments, Inc. 3300 Edinborough Way Edina, MN 55435 10 -F RE: Banking and Office Facilities - 57th Avenue North and University Avenue, . Fridley, Minnesota: Letter of Intent Dear Mr. Bubany: This correspondence is to confirm that Crosstown Bank intends to continue plement the with good faith negotiations to finalerinstitutionoatmthe above site. arangements establishment of a detached facility of our We have reached preliminary agreement on a number of key elements, including the following: 1. The Pct consist of approximately 18,000 square feet of The Project its..lf will rentable area a.►d contain a two -story element which will be basically used to provide banking facilities on the first floor along with office ry element. The facilities on the second floor of the two -sto a balany h element will coasie single story approximately 8,000 square feet for of of the space being commercial users. 2. Basic Lease Teims The facilities are available for lease under the basic economic terms as listed below: A. Suite locations: Banking facilities Executive offices B. Suite size C. Anticipated occupancy date D. Lease Term 1st floor 2nd floor Approximately 59889 rentable square feet On or before October 1, 1989 Undetermined Ham Lake: 17636 NE Central Ave. Ham Lake. MN 55304 Phone: 1- 612.434.9561 Blaine: 12301 NE Central Ave. Blaine, MN 66434 Phona: 1. 612.755-9060 "Automatic Teller Machine Available At An Lc.cationW' DEC-07-188 19:03 T- CROSSTOWN BLA I ME #594 -03 Mr. Edward C. Bubany December 7. 1988 Page 2 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 10 -G 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 Lime 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 to: 1J: W I - I l WN bLH 1 NL Rt)J4 -b4 Mr. Edward C. Bubany December 7, 1988 o Page 3 10 -H 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, <.� P6%C_ Thomas P. Dolphin President TPD /srs 11" 6 N Engineering / Sewer Water Parks Streets Maintenance MEMORANDUM TO: William W. Burns, City Manager PW90 -170 FROM: John G. Flora,Vpublic Works Director DATE: July 11, 1990 SUBJECT: Auto Service Center /Highway 65 & 73 1/2 Avenue I have received a copy of the ALS letter regarding the City -owned property east of the frontage road and north of 73 1/2 Street. These 2 lots of approximately 20,000 square feet are currently owned by the City. While we do not have specific plans for this area, it should be noted in our overall water analysis plan, it was identified that an additional well should be constructed in the intermediate zone. This was a result of the compromise and lack of adequate water storage. Our original approach to this problem was to locate a new well adjacent to Well No. 1 on Cheri Lane. While this is relatively small site, it would allow for the construction of a filter plant which would then filter the water from the two (2) wells improving the water quality of our system. The current lots in question are in the intermediate zone and are of sufficient size that they could be used for a new well which would be adjacent to Well No. 12 and a filter plant which could service the two (2) wells at this location. While the decision to locate an intermediate well is not eminent, the City Council may want to consider its options for either developing this property for public use or releasing it for commercial development. JGF /t Jock Robertson FRIDIIIf CRYSTAL. MN_ THE SCHRADER BLDG. TRAPP ROAD BLDG. BLAINE. MN CENTENNIAL SQUARE MOBILE HOME PARK CARE FREE SELF- STORAGE EAU CLAIRE. VA OAK RIDGE VILLAGE MOBILE HOME PARK SIOUX FALLS. SO SILVER GLEN MOBILE HOME PARK AND SALES BRAINERD, MN STONYBROOK SOUTH r )LE HOME PARK SALES NORTHFIELD. MN SCHRADER FARMS HART CUSTOM HOMES. INC. FRIDL.EY CRYSTAL n A. L. S. properties Real Estate And Investments 5501 Lakeland Avenue North, Crystal, MN 55429 (612) 535 -2840 Alvan L. Schrader, Owner July 5, 1990 The Honorable William Nee City of Fridley, Municipal Center 6431 University Avenue Northeast Fridley, Minnesota 55432 Re: Proposed 26,300 S.F. Auto Service Mall and 4,000 S.F. Full Service Restaurant Highway 65 & 73P. Avenue N.E. Fridley, Minnesota Dear Mayor Nee: We are very disappointed to have heard, through Mr. Jock Robertson Fridley's community development director, that our request for financial assistance from the City of Fridley through tax increment financing has been turned down. This will make it extremely difficult for us to obtain the necessary financing to bring the project'to fruition in its present form. We understand that one of the uses of T.I.F. is that it could be used for land assembly. I would think that we would qualify for that as we will have to purchase a parcel of the proposed site from others for $77,000 and also purchase land from the City of Fridley to complete the project as proposed. We would appreciate a letter from you explaining the reason or reasons why our request for T.I.F. was denied by the city council. I understand the council members were polled individually out of the council chambers and they were not enthusiastic about our proposal. If you would expound on this for us I would appreciate it as we are somewhat in the dark as to what was said about the merits of our proposed project. If there is no possibility of our obtaining any form of financial assistance through the City of Fridley by way of tax increment financing, the city could help us in another way that would not cost the city anything. Enclosed is a primitive plot .plan showing the approximate amount of land owned by the City of Fridley, A.L.S. Prop- erties and Royal Electric Company that comprise the site for the proposed development. The city land shaded in red July 5, 1990 The Honorable William Nee Page 2 has building setbacks on 731i Avenue N.E. and the frontage road of 85 feet. Add'this to the setback requirement along the east and north property lines with A.L.S. Properties and there is no room to build a building, -no matter how miniscule.. I would like to propose that if T.I.F. is not possible for us to obtain, the city could still help us in a lesser way by selling their unbuild- able property to us for $1.00. This would put the city property back on the tax rolls and make a more viable project by utilizing all of the property as shown on our proposed site plan. If this is not poss- ible, for financial reasons, we may be forced to greatly cut back on the scale of the project by using only A.L.S. Properties land. This would eliminate the proposed free standing restaurant and reduce the size of the auto service mall. We would appreciate hearing back from you at your earliest possible convenience concerning these matters. Thank you in advance for your anticipated assistance in helping to bring this project to fruition. Sincerely, A.L.S. PROPE IES n Alvan L. Schrader, Owner ALS /pn encl. cc: Mr. Jock Robertson 1XII y ti fV 1� y M cF s C Iry r evo spM- Av"1�FR M e ITi oA' rRIVL,EY • , 4iTY lrlNp AaAIL.Valc moon C /TY /,Z. 040 e /ry ox, rPo4kry %! Z .S . �ROPrrPTrr -.1 I sp F� a 1-74. S. rp6Pr-p-iE.s I /.?,coo .so Fi I f0 F! Q�oA "1 Al 0 1 s. v, �g 1. "1 Al 0 VIMIVIDENT to �-� Casserly Molzahn & Associates, Inc. 215 South 11 th Street, Suite 200 • Minneapolis • Minnesota 55403 Office (612) 342 -2277 • Fax (612) 332 -4765 M E M O R A N D U M TO: Catty of Fridley ock Robertson, Development Director William Burns, City Manager FROM: James R. Casserly r DATE: June 14, 1990 RE: Draft Memo on Target Expansion aCCaCCOCC= a�acCaaaaa�aC�= �= o.aac== c =c..c I have spoken with Rick to the HRA which has no S.W. Quadrant analyses. of the former Amoco gas an expenditure in 1981 significantly alter the memo, but it should be , Dave and Jock about an additional cost t previously been included in any of the The additional cost is the acquisition station. Rick's initial checking showed of $79,684. This amount does not analysis or recommendations in the draft included in future analysis. The main purpose of this memo is to emphasize once again how important it is to have additional meetings with Target. As we spent time on this proposal, more options presented themselves. Unfortunately, some require significant analysis from both a legal and financial perspective. The proposal presented is complex enough. Target may opt for simplicity or may suggest other options. The proposal clearly shows that we are committed to working with them; but, we now need their input. On a personal note, I certainly appreciated our luncheon conference at the beginning of the month. It provided me with some insights and direction. A breakfast or lunch once a month to review projects and set agendas would be very helpful. Thanks again. JRC /db •e ' --� Casserly Molzahn & Associates, Inc. 215 South 11 th Street, Suite 200 • Minneapolis • Minnesota 55403 Office (612) 342 -2277 • Fax (612) 332 -4765 M E M O R A N D U M TO: City of Fridley Housing and Redevelopment Authority t•dock Robertson, Community Development Director William Burns, City Manager Richard Pribyl, Finance Director David Newman, HRA Attorney FROM: James R. Casserly Mary E. Molzahn DATE: June 13, 1990 RE: Proposed Target Expansion in Southwest Quadrant of Mississippi and University INTRODUCTION Target has asked the City /HRA for assistance in moving its Central Processing Center (CPC, containing approximately 60,000 square feet and employing 250 people) to Fridley. This facility would be combined with the existing Northern Operations Center (NOC, containing approximately 75,000 square feet and employing 250 people). Additionally, Target needs immediate expansion space and the opportunity for future expansion. Target and the City have reviewed several options including the expansion of Target's existing building with a ramp on the 10,000 Auto Parts !�, Site; a new building on the 10,000 Auto Parts Site with a ramp C • ,,.� added to its existing site; and the construction of an entirely new facility on the S.W. Quadrant with the sale of Target's existing building. This memorandum will analyze this last option and suggest a proposal for Target. S.W. QUADRANT OPTION This option provides a number of advantages to both the City and Target. Advantages for the City /HRA: 1. It redevelops a site that has been the subject of redevelopment efforts for over 10 years; 2. It allows the capture of tax increment in a district /"1 that will terminate August 1, 2009. Every year that development does not take place the HRA has that much less for its redevelopment efforts (some of the proposals for the S.W. Quadrant have required a subsidy from outside the district; the Target proposal may not); 3. The HRA has already acquired the property which contains the liquor store and is currently acquiring the Levy property; 4. One or more office buildings would appear to be the highest and best use of a site that is clearly in a 11-� commercial, business, government center; 5. Traffic concerns including circulation, ingress and egress on both sides of Mississippi Street and improvements to Mississippi Street and the University intersection will have to be addressed. Knowing the land use and capturing additional increment by moving sooner will allow for better planning and a quicker resolution of problems that must eventually be resolved; 6. The 10,000 Auto Parts Site becomes increasingly attractive for more intense commercial, office or government activities (or any combination of these). The entire N.E. Quadrant might be further reviewed to determine its maximum potential with the addition of up to 300,000 square feet of office space across the intersection. Advantages for Target: 1. It allows the Target NOC to remain in Fridley which the company and its employees, we are told, clearly want; 2. It allows the merger of NOC and CPC which is a corporate objective; and the construction of an entirely new building will allow for the most efficient space design, and planning; 3. Immediate expansion space is provided; 4. Long term expansion space is available (at least another 175,000 square feet); 5. No parking structure is needed for the first 175,000 square foot building; there is enough surface parking; 6. The construction of a new facility should allow for minimum disruption at NOC during the time of construction; 7. The cost of moving NOC should be somewhat reduced because of the site's proximity. THE PROBLEMS Because of Target's need for expansion capabilities and the fact that it currently owns its Fridley building, there are several problems: 1. Target does not wish to commit to a new site until it knows that it has disposed of its existing building by sale, lease, etc. 2. Target wants to have the option to expand for as long as possible. The City wants to see the site developed to its maximum as soon as possible. 3. Target wants to keep its operating costs for the new facility as close as possible to its NOC operating costs (which simply means they are looking for the maximum subsidy). FINANCIAL ER VIEW A Review of Expenses and Revenues is necessary before outlining the proposal. EXPENSES: For the last two years we have worked with the following budget: Acquisition $3,200,000 Relocation 380,000 Demolition 130,000 Public Improvements 300,000 Total $4,010,000 The acquisition amount includes $550,000 that the HRA previously spent for the liquor store property. The public improvement costs were speculative over 2 years ago when they were first estimated. Some additional analysis should be done assuming a proposal is made to Target. Costs over $300,000 can be specially assessed, paid from other available tax increment or paid from state aid funds (particularly those expenses relating to the intersection improvements). In any event, $300,000 is allocated and the total budget should be reviewed. ,11-1 REVENUES: A $175,000 square foot building paying $2.50 /square foot in taxes and fully constructed in 1991 will generate $8.4 million in taxes for the duration of the district (see Scenario II attached for the assumptions). The actual amount of tax increment generated will need further refinement. Unresolved at this time are the amount of net rentable square feet, the value of the land (the building footprint is only 25,000 square feet), the market value of the building and the base adjustment when the liquor store property becomes taxable. Given the assumptions shown on the attached Scenario II, on a present value basis there is approximately $2.9 million available with a 10% present value factor and $3.6 million available with a $7.5% present value factor. If the City were to issue the maximum general obligation tax increment bond, there would be approximately $3 million available from bond proceeds for project expenses. If the bonds are tax exempt, $3.5 million should be available. (A number of factors can increase the available proceeds including valuation, inflation, administrative expenses, capitalized interest and interest rates to name a few). In summary if the HRA does not wish to recapture its liquor store property expenditures ($550,000) and forego administration fees, then the HRA could give the land to Target (clearly if the HRA donated the land it could use tax exempt financing and enough funds would be available to partially reimburse itself for the liquor store site). The value of the land ready for construction should be between $3.00 and $4.00 per square foot and with approximately 427,987 square feet the value is $1.3 million to $1.7 million. This range is conservative if the site were actually developed with 350,000 square feet of office space. If Target pays $1.5 million for the site, the City not only has $8 million in tax increment but also the $1.5 million in land proceeds. Depending on the HRA position, the tax increment alone would recover a substantial portion of the HRA investment. The $1.5 million is then available for an actual subsidy (the HRA cost is not be to confused with the developer subsidy). Additional tax increment revenues would result with any expansion. If in 1996 another 175,000 square foot building were constructed, then another $2.3 million to $2.7 million (present valued to 1996) would be available for project expenses such as the construction of parking facilities. THE PROPOSAL 1. The HRA acquires the S.W. Quadrant and sells one -half of it to Target for $1.5 million which is payable on an installment basis and leases the remaining half for $1.00. No interest accrues the first year. Interest accrues but is added to principal for the next 4 years. For the last 15 years debt service is evenly amortized. 0 2. The land sale price can be reduced up to $750,000 to assist Target in the sale or leasing of its present operation. An appraisal will have to be made to provide a basis for determining the subsidy. Also if Target wishes to lease rather than sell, a comparison of rentals will have to be made for the same purpose. A combination of the above is certainly possible. 3. If Target expands so that construction would commence in 1996, for each 25,000 square feet of construction, the principal amount of the note will be reduced by $250,000 plus the accrued interest on that portion. 4. Before July 1, 1995, Target must notify the City of its expansion plans. If it plans to expand then the HRA will construct a municipal ramp and convey the leased portion of the site to Target excluding the portion needed for the ramp. The ramp will be financed with all available tax increment for the duration of the district generated by the additional valuation. Any shortfall will be paid by Target. The ramp can provide individual leases and can provide a small percentage of reserved space. Target can be the ramp manager through a management contract. A long term arrangement regarding security and maintenance will have to be negotiated. The ramp size will be a function of additional space being constructed and the amount of surface parking that will be retained. If Target does not wish to expand, then the leased portion of the site will remain with the HRA for future development. However, Target will have the right to continue to use the site for surface parking until further development takes place. The HRA agrees that with any additional development it will have to provide Target with parking treatments to compensate for the lost surface parking. The HRA will provide sufficient parking so that the original building size will have at least the space required by City code or more if so negotiated by the parties. CONCLUSION While the proposal is somewhat complex it attempts the following: 1. Encourages maximum development of the site. 2. Provides Target with extensive assistance in selling or leasing its existing building (up to $750,000). 3. Provides Target with real incentives to expand on the S.W. Quadrant as soon as possible by forgiving up to $750,000 of the note and pledging the tax increment generated by the expansion for parking treatments. 4. Assures Target that it will have available parking and �, allows the HRA to have an active role in the continuing . ^ redevelopment of the site if Target does not expand. The $750,000 plus accrued interest owed by Target, the sale of one -half of the site to another user and the potential tax increment should allow the HRA substantial financial flexibility in promoting additional development. Other issues need to be explored but should probably be deferred until Target has responded to the proposal. The variations are endless, and at this time we need Target's input. The City /HRA and Target have compatible goals but may not agree on the mechanics of achieving them. Further discussion is definitely necessary. Since the City /HRA is giving everything it has for the next 19 years, you may wish to share this analysis with Target. Target will become a co- developer with the HRA and it may be helpful for them to understand our options and limitations. JRC /db . r a H CW7 4 W Q N a}! 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Q < 2 Q A i3 W > H I" H H W a b of -J IIQOa d� n n i h 4h7l KPIA E3 e-"70 j r -� Cl. CL 0 O 9 FO-1 0 n 0 qo� WA a r� 0 n R HCJDMDIIVT?AL° 11'� July 2, 1990 Mr. Keith Kostial Facilities Manager Target Stores 33 South 6th Street P.O. Box 1392 Minneapolis, MN 55440 Dear Mr. Kostial: Let me start by acknowledging the City of Fridley's increasing optimism about the possibility of Target locating a combined Northern Operations Center (NOC) and Central Processing Center (CPC) in Fridley. As a follow -up to our several meetings, correspondence, and telephone conversations, we have prepared a more detailed proposal with the help of our legal and financial consultants. As we discussed earlier, the City of Fridley is willing to make cleared land, complete with streets and utilities, available to you at a very competitive price. We also are willing to finance the purchase of the property on an installment basis with forgiveness on part of the payments to assist either future expansion or the disposal of the existing NOC property. Here are the details of our proposal to date: 1. The City Housing and Redevelopment Authority will acquire the 427,987 square foot site through purchase or eminent domain. As you know, the City already holds several parcels on that site. The acquisition will include the demolition of the existing buildings and relocation of the occupants. The City will also install a 1,140 foot access road and watermain connecting Mississippi Street with the University Avenue frontage road and southbound entrance ramp. The Mississippi Street intersection will be fully signalized for your convenience. We will also provide a storm sewer. Detention of approximately 2.85 acre feet of stormwater will have to be provided on site. 11_1 Mr. Keith Kostial July 2, 1990 Page 2 2. The City HRA will then sell half of the total site to Target for $1.5 million. The entire site would be required for the surface parking of over 600 cars that you have requested, and the City will lease the remaining half to Target for $1.00. In effect, Target will have control of the entire site for $1.5 million. To reduce your initial cost, the sale would be structured on a 20 year installment basis. No interest would accrue on the installment payments the first year. For the next four years, interest would accrue, but is added to the principle. For the last 15 years, the debt service would be evenly amortized. 3. This land sale price can be reduced by up to $750,000 to either assist Target in the sale or leasing of its present NOC Operation and /or to discount the land sale price, depending upon how.Target wishes to structure the entire transaction. An appraisal will have to be made of the existing NOC to provide a basis for determining the subsidy. Also, if Target wishes to lease the existing NOC rather than sell, a comparison of rentals will have to be made for the same purpose. Certainly a combination of the above is possible. You have stated that you anticipate that the proposed 175,000 square foot facility would meet your needs for the next five years. If Target were to expand so that construction would commence in 1996, for each 25,000 square feet of expansion, the City is prepared to reduce the principal amount of the note by an additional $250,000 plus the accrued interest on that portion. 4. If Target chooses to expand on the site, the City would request a notification one year before it exercises this option. In this event, the Fridley HRA will construct a municipal ramp and convey the leased portion of the site to Target excluding the portion needed for the ramp. The ramp will be financed with all the available tax increment generated by the additional valuation created by the Target expansion for the duration of the tax increment district which is currently scheduled to end in the year 2009. However, any shortfall would have to be paid by Target. Such a municipal ramp can provide for individual leased stalls and also a small percentage of reserved spaces for Target. We would ask that Target be the ramp manager through a management contract. ,11-� Mr. Keith Kostial �..� July 2, 1990 Page 3 A long term arrangement regarding security and maintenance will have to be negotiated. The ramp size will be determined by the size of the additional Target expansion and the amount of surface parking that you may wish to retain. 5. If Target does not wish to expand, then the leased portion of the site will remain with the HRA for future use by another developer. However, Target will have the right to continue to use the site for surface parking until future development takes place. The HRA further agrees that any additional development will provide Target with the parking facilities to compensate for the lost surface parking, and that the HRA will provide sufficient parking so that the original combined facility will have at least the space required by the City or more so if negotiated by both parties. We estimate that the City's costs of acquisition, relocation, demolition, and public improvements will exceed $4 million. But, obviously, there are some great advantages to the City in proceeding with a redevelopment district that has been in our plans for ten years. One or more office buildings on the southwest quadrant appear to be the highest and best use of this site that is clearly a part of our commercial business and government center. We also see definite advantages for Target. It allows the Target NOC to remain in Fridley which you have told us the company and its employees prefer. It also allows the merger of the NOC and the CPC and the construction of an entirely new building which would allow for the most efficient space design and planning. Further, while immediately needed space is acquired by Target, future long term space would also be available at this site. The construction of the new facility across the street would minimize disruption at the NOC during the time of construction, and the cost of moving the NOC would be reduced because of the site's proximity. Finally, we think that our proposal provides Target with extensive assistance in selling or leasing your present NOC building, while at the same time providing you with real incentives to expand to on the southwest quadrant as soon as possible by forgiving up $750,000 of the note and pledging the tax increment generated by a future expansion for future parking requirements. Our intent is for the City to make available tax increment for the life of the district in the next 19 years. We have had our financial consultant, James Casserly, prepare a financial analysis Mr. Keith Kostial July 2, 1990 Page 4 of what is available t o of the site with us, analysis so you may limitations. us. Since you will become a co- developer you may find it helpful to review this more clearly understand our options and Obviously, many other issues need to be mutually explored. The variations are endless, and we need your initial reaction to the proposal as outlined thus far. We believe that the City and Target have compatible goals, but you may not agree on the mechanics we have outlined to date for achieving them. We wish to discuss these further with you as soon as possible. May I suggest that we meet again in the near future to review this proposal, perhaps lunch on Friday, July 13. We are enthusiastic about this possible expansion of our good corporate neighbor in Fridley. As in the past, we stand ready to meet all competition. Sincerely, William J. Nee Mayor WJN:1s Attachment cc: Mr. Robb A. Gruman Director, Administrative Services Target Stores C -90 -419 l� Amendments Relating to Redevelopment Project No. 1 of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, Including Revision of Modified Redevelopment Plan; Amendment of Tax Increment Financing Plan Nos. 2 through 10; and Adoption of Tax Increment Financing District and Plan No. 11 July 23, 1990 This document was drafted by: Briggs and Morgan 2200 First National Bank Bldg. Saint Paul, Minnesota 55101 (612) 291 -1215 3080 Section I. Amendment of Modified Redevelopment Plan for Redevelopment Project No. 1 and Amendment of Existing Tax Increment Financing Plan Nos. 2 through 10 Section 1.1. Definitions. The terms defined below, for purposes hereof, shall have the following respective meanings, unless the context specifically requires otherwise. The term "development" includes redevelopment, and the term "developing" includes redeveloping. "City" means the City of Fridley, Minnesota. "Council" means the City Council of the City, its governing body. "County" means Anoka County, Minnesota. "Enabling Act" means the Minnesota Municipal Housing and Redevelopment Act, as previously codified in Minnesota Statutes, Sections 462.411 et sea., as now codified in Minnesota Statutes, Sections 469.001 through 469.047, and as the same may be amended or supplemented. "HRA" means the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, established pursuant to the Enabling Act. "Project Area" means the real property within the City constituting the Redevelopment Project. "Redevelopment Plan" means the Modified Redevelopment Plan for the Redevelopment Project, as amended (including without limitation the February 26, 1990, amendment thereof), and as amended hereby. "Redevelopment Project" means Redevelopment Project No. 1 of the HRA, as amended (including without limitation the February 26, 1990, amendment thereof), and as amended hereby. "State" means the State of Minnesota. "Tax Increment District" means any tax increment financing district established pursuant to the Tax Increment Act or other- wise within the Redevelopment Project, as amended. '� 3080 1 -1 "Tax Increment Act" means the Minnesota Tax Increment Financing Act, presently codified as Minnesota Statutes, Sections 469.174 through 469.179, as the same may be amended. "Tax Increment Plans" means the respective tax increment financing plans adopted pursuant to the Tax Increment Act or otherwise for the Tax Increment Districts, respectively, as amended. Section 1.2. Background and Purposes. The HRA established the Redevelopment Project and adopted the Redevelopment Plan pursuant to the Enabling Act and has established Tax Increment Financing District Nos. 1 through 10 within the Project Area. Pursuant to the Enabling Act, the HRA is authorized to exercise the powers of a housing and redevelopment authority under Minnesota Statutes, Sections 469.001 through 469.047, among other powers, and it is the intention of the Council and the HRA that the HRA shall exercise any and all of said powers as may be necessary or appropriate for the development of the Redevelopment Project in accordance with the Redevelopment Plan. Section 1.3. Enlargement of the Redevelopment Project. The Redevelopment Project is hereby enlarged to include the property constituting Tax Increment Financing District No. 11, as described in Exhibit II -A which is attached to Section II below. n The HRA finds that the Redevelopment Project, as so enlarged pursuant to this Section I, together with the goals and objectives which the HRA seeks to accomplish or encourage with respect to such property, constitutes without limitation a "redevelopment project" within the meaning of Minnesota Statutes, Section 469.001, Subdivision 14. Section 1.4. Amendment of Redevelopment Plan. The Redevelopment Plan is hereby amended by amending Subsection 1.9 thereof to include the following estimated and additional public improvement and development costs to be made or incurred within the Project Area and financed in whole or in part by tax increment or other revenues of the HRA: Site Acquisition, Demolition, Clearance, and Other Site Preparation Total Additional Development Costs and Maximum Additional Bonded Indebtedness (Development Costs Would also Include Interest on Indebtedness) 3080 1 -2 $200,000 $200,000 In addition to the costs itemized from available tax increment such as may be permitted by but subject provided in the Tax Increment Act. Section 1.5. above, the HRA intends to pay qualifying administrative costs to the applicable limitations Tax Increment Financing District Nos. 2 through 10. The Tax Increment Plans for the existing Tax Increment District Nos. 2 through 10 are hereby amended to incorporate the additional public development and redevelopment costs, programs, goals, and activities incorporated into the Redevelopment Plan pursuant to this Section I above. No tax increment plan has been adopted for Tax Increment Financing District No. 1 since said District was requested for certification prior to August 1, 1979, and neither the HRA nor the City has elected to bring said District generally within the purview of the Tax Increment Act. The amendments to the Redevelopment Plan contained in this Section I are within the scope of activity of the original redevelopment plan related to the property constituting Tax Increment Financing District No. 1. 3080 1 -3 ...� Section II. Tax Increment Financing District and Plan No. 11 (Neighborhood Retail Project) Section 2.1. Statement of Objectives. The objectives which the HRA seeks to achieve through the implementation of this Tax Increment District are set out in Subsections 1.1 through 1.15 of the Redevelopment Plan, as amended pursuant to Section I above. Section 2.2. Development Program. The development program which the HRA seeks to further through the implementation of this Tax Increment District is the Redevelopment Plan, as set out in Subsections 1.1 through 1.15 thereof, as amended by Section I above. Section 2.3. Parcels to be Included in Tax Increment District. This Tax Increment District shall consist of the two parcels described in the attached Exhibit II -A, all in the City of Fridley, Anoka County, Minnesota. A map showing the boundaries of this Tax Increment District is attached to this Financing Plan as Exhibit II -B. Section 2.4. Parcels in Acquisition. The HRA intends to acquire parcels, or interests therein, within this Tax Increment District or within the Redevelopment Project at the time or times as the HRA may determine to be necessary or desirable to assist or implement development within the Redevelopment Project or the Tax Increment District. Section 2.5. Development Activity Anticipated for Redevelopment Project No. 1. The HRA anticipates that it will enter into suitable agreements with Urban Commercial Development, or other suitable developer(s), for the acquisition of the property in this Tax Increment District, the demolition and removal of the existing structures thereon, and the completion of other site preparation and improvement measures. Upon completion of these activities, the HRA anticipates the construction by such developers on the property of an approximately 28,000 square foot neighborhood retail center (the "Development "). In consideration of the needed Development, the HRA also anticipates contributing approximately $200,000 to defray site acquisition, demolition and related improvement costs expected to be incurred in completing the Development. The Development will be located generally in the northeast quadrant of the intersection of University Avenue and Mississippi Street in the City. Much of the Development will be situated on property which is and has been within the Project Area, dating back to the original approval of the "Center City" 3080 2 -1 redevelopment project and tax increment plans in early 1979. The Development is well within the scope of activity set forth for the subject site in those original plans. The Development will, due to site size, traffic, and similar site and development considerations, also need the property within this Tax Increment District, and in fact it is anticipated that the building portion of the Development will straddle and overlap the boundary line between Tax Increment-Financing District Nos. 1 and 11. Section 2.6. Estimated Public Improvement Costs. The estimated principal amounts of the public improvement costs and the amount of bonded indebtedness to be incurred within and for the benefit of Redevelopment Project No. 1 are set forth in Subsection 1.9 of the Redevelopment Plan, as amended by Section I above. General obligation and /or revenue tax increment obligations, in addition to the direct use of tax increments, may be used as required to finance such costs, and the interest paid on such obligations would be in addition to the principal amounts of the assistance referenced above. Additional sources of revenue derived from the HRA's activities within the Redevelopment Project under the Enabling Act may also be used, if available. Section 2.7. Estimated Tax Capacity. The HRA estimates that, upon completion of the anticipated development, the captured tax capacity of this Tax Increment District will be ,-� approximately $21,932. This estimate is based on estimates that the original gross tax capacity of the Tax Increment District will be $5,565 and that the total tax capacity of the Tax Increment District, upon completion of the Development, will be approximately $27,497. Section 2.8. Type of Tax Increment District. This Tax Increment District is, pursuant to Minnesota Statutes, Section 469.174, Subdivision.10a (Laws of Minnesota 1990, chapter 604, Article 7, Section 6), a "renewal and renovation" district because the following conditions are met and are reasonably distributed throughout the District: (1) parcels consisting of at least 70% of the area of said District are occupied by buildings, streets, utilities, or other improvements; (2) 20% of the buildings are "structurally substandard" (within the meaning of Minnesota Statutes, Section 469.174, Subdivision 10(b)); and (3) at least 30% of the other buildings require substantial renovation or clearance to remove existing conditions such as or giving rise to incompatible uses and land use relationships, consolidation of a suitable site for commercial development, and proper traffic management and safety planning. Said District consists of a 2 tax parcels, and in excess of 15% of each parcel 3080 2-2 is covered by one or more of the above - described types of improvements. Section 2.9. Duration of Tax Increment District. Pur- suant to Minnesota Statutes, Section 469.176, Subdivision 1(e), no tax increment from this District shall be paid to the HRA after 15 years from the date of receipt by the HRA of the first such tax increment. The HRA anticipates that, unless the activities to be financed are.expanded in the future or exceed current estimates, these costs, together with interest thereon, will be paid prior to the termination of that 15 year period. Section 2.10. Impact on Taxing Jurisdictions. The impact of this Tax Increment District on the affected taxing jurisdictions is reflected in the HRA's anticipated need to utilize the tax increments generated from this Tax Increment District during the period described in Section 2.9 above for the purposes of financing the public costs identified in the Redevelopment Plan, following which period the increased assessed valuations will inure to the benefit of such taxing jurisdictions. For the payable 1990 property taxes, the respective tax capacity rates and total tax capacities of these taxing jurisdictions are set out in the following table. Taxing Jurisdiction Tax Capacity Rate Tax Capacity City of Fridley .14995 $ 27,956,770 Anoka County .28846 133,879,942 I.S.D. No. 14 .43158 11,564,294 Other .04384 .91383 On the assumption that the estimated captured tax capacity of this Tax Increment District would be available to the above taxing jurisdictions without creation of this Tax Increment District, the impact of this tax increment financing on the tax capacities of those taxing jurisdictions is relatively small, as shown by comparing on a percentage basis the estimated $21,932 of initial captured tax capacity to the current total tax capacity of each of those jurisdictions, respectively. On the alternate assumption, which has been found to be the case, that none of the estimated captured tax capacity would be available to these taxing jurisdictions without the creation of this Tax Increment District, during the period of this District's existence there 3WO 2-3 would be no effect on the above tax capacities, but upon the expiration or earlier termination of this Tax Increment District, each taxing jurisdiction's tax capacity would be increased by the captured tax capacity, as it may be adjusted over that time period. Section 2.11. Reasonable Expectations. As required by the Tax Increment Act, in.establishing this Tax Increment District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that therefore the use of tax increment financing is deemed necessary. In making this determination, and in making the other determinations required by the Tax Increment Act or the Enabling Act, reliance has been placed upon various written reports, studies, and analyses prepared by City and HRA staff (which reports are hereby incorporated herein to the same extent as though set forth in full herein) and on the difficulty and expense of redeveloping the subject property without public assistance, given the considerable acquisition, demolition, clearance, and site assembly efforts which will be needed and related expenses incurred to achieve a redevelopment which is economically feasible to the private sector. Section 2.12. Certain Limitations. Pursuant to Minnesota Statutes, Section 469.176, Subdivision 4j (as amended by Laws of Minnesota 1990, Chapter 604, Article 7, Section 19), at least 90% of the tax increments from this District must be used to finance the cost of correcting the types of conditions that allow designation of redevelopment and renewal and renovation tax increment districts under Section 469.174 of the Tax Increment Act, including without limitation the uses described in said Subdivision 4j. In addition, and as indicated in the map published in connection with advertising the initial Council public hearing on this District, tax increments from this District are intended for such uses within and adjacent to this Tax Increment District. 11-� 3080 2-4 EXHIBIT II -A Tax Increment Financing District No. 11 This District consists of the following two parcels located in the City of Fridley, Anoka County, Minnesota: PIN Description 14- 30 -24 -24 -0009 Lot 9, Block 2, Rice Creek Terrace Plat 1 14- 30 -24 -24 -0036 Lot 12, Block 3, Rice Creek Terrace Plat 2 3080 I I -A A • EXHIBIT II —B • / x r•. �; � t{.• r � = i �. �► \' `y • . `. •� • �..• ;�' 4 •.. (` ! (rte • . . � �, •its I 'S, ♦ '._ -:• .`� ••�'• ry,. •• t i� 11 + 1' !• +�•� ' � I �� ",' / �+ \ � 'r +,�'.. :/• �� 6• •i. � r- 1 • r �• t J 1, � + � +1 a + _ •r Il � I•r s y�'i �' : • • -6��'i , �+'l �1 •,• •. 67 AVE. N. E. I • t " al . /• ,� ,;�`..' j• : i • ,_ ~ I � •� j J � � • � � • ��1 a jr i ,.9 rl � •a J ••9 a' •�••� .! • f �. � � J I ,� f }�{ � �Jj /� /1 ' •� (, ,� . •I •�: •• 1 •" I� //_,'I `i ' I,y 1 •. � 1. f ,+ •I wr. z •r. �I I= •F III }1/� /f.. rl,�•••'L -S �r•.V �L E(1•'�'- w'•• -�r • !'+ W �'66TM 'AVE. N•E. Or _ +... �. • ►• M• n■.� 7s.I.,�r�J � � •� • _ ` 1 // 1 � � � • '� �� • � PLAT L •; .1. 1 f �► '''� _— ' �';; • i ti — OOtINT1F•& AID Ow NI6HWw -N ' SYL EY ptt r • StLVAM PL �.A "yam - ., ' • : P ; �.� % ALICE�� r •• �: � ELUTE • • .• • E . :, i ,�•y /� .� ; . . SnAM r • . • Rt1AAY . DRIVE r •,; V��'' r / ••• � + •••. f, ••~ , \L••� • -fir 1 _ �.• �fN '' -�.,� , i•�_ } _ AUDLNORS •�,_•: -/; • ` ,r r2 _LANE —�•+ __Y�__ •r.1y ._ -� r yr _0; Existing Center City Tax Increment District ■ Proposed Tax Increment District # 11