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HRA 11/08/1990 - 6887I� f � �t "1 o- K M- t � µ. rmJ f g At4. fi r BUY- ' 5 =, {J� J �,Y �.r I� f � �t "1 o- Ow M—Al x t � At4. fi r BUY- ' J �,Y �.r ................ iW" An f � PON s 1, r, JOCK ROBERTSON c EXECUTIVE DIRECTOR OF As k Woo cr 4 Y T 1 > F ig I SAM K � c Y 1A RK MM I PRI'll . e 0 rn 0 z UJI w Z O 0 U- Z Q 7 W c� J Q o` W F-- A W _J .--o LL. W W 0 S4 N N A O W 40 H 0 .) w cn A 4 N 1 4J EO h U! 4J (d a � o 4a 4-I B, p, o ° .pp,, ° a U d� FC 4:4 �m 1 p, � U O N � W EQ 4-) O • � -4�► N � N ra ul ON IN �b ro W A r-I r-1 �-- 8 LLJ x cn R CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, NOVEMBER 8, 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: October 11, 1990 ACTION ITEMS: SALE OF LAND RECEIVED FROM�� - � _ CITY TO FRIDLEY AUTO MALL. . . . . . . . . � 1D CONCEPT OF PROPOSED TIF ECONOMIC �� ��'�r DEVELOPMENT DISTRICT FOR NEW RMS PLANT r a7 i�0 ESTIMATES:G�i, THE KORDIAK ell C` 4 �' ! �(�-c COMPANY (RICE PLAZA) .!� . . . 3 TALBERG LAWN & LANDSCAPE (LAKE POINTE MAINTENANCE). � V.4 4D CLAIMS . . . . . . F! INFORMATION ITEMS: 4ma STATUS OF THE CORRECTIVE ACTION AT 57TH PLACE. . . . . . . 6 STATUS OF RIGHT -OF -WAY ACQUISITION FOR MISSISSIPPI/ UNIVERSITY INTERSECTION IMPRO�VnEMENTS IN 1991 7 - 7I �.r 47'r ; fit` `� it�`c STATU OF TARGET AND FRIDLEY TOWN SQUARE �'e' PROPOSALS FOR CENTER CITY REDEVELOPMENT. . . . . . . . . . 8 _ 8A OTHER BUSIN SS ADJOURNMENT Lo V �� js t? f - CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 11, 1990 CALL TO ORDER: Vice - Chairperson Schnabel called the October 11, 1990, Housing and Redevelopment Authority meeting to order at 7:10 p.m. ROLL CALL: Members Present: Virginia Schnabel, Duane Prairie, John Meyer Members Absent: Larry Commers, Walter Rasmussen Others Present: Jock Robertson, Executive Director of HRA Virgil Herrick, City and HRA Attorney Paul Hansen, Accountant Jim Casserly, Development Consultant Jerry Brill, representing Ashland Oil /Rapid Oil Doug Erickson, Fridley Focus APPROVAL OF SEPTEMBER 13, 1990. HOUSING & REDEVELOPMENT AUTHORITY MINUTES• OTION by Mr. Meyer, seconded by Mr. Prairie, to approve the September 13, 1990, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. ESTIMATES• 1. TALBERG LAWN & LANDSCAPE (LAKE POINTE): MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the payment to Talberg Lawn & Landscape in the amount of $4,458.22. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. R. NELSON ENGINEERING (SOUTHWEST QUADRANT STORMWATERI: Mr. Robertson stated this estimate is in connection with the corporation which is looking seriously at the southwest quadrant. City staff wanted to furnish information to this corporation on how this stormwater should be handled and the approximate costs. This information was completed satisfactorily by R. Nelson Engineering, and staff recommends approval. v HOUSING A REDEVELOPMENT AUTHORITY MTG., OCT. 11, 1990 PAGE 2 e NOTION by Mr. Meyer, seconded by Mr. Prairie, to approve the payment to R. Nelson Engineering in the amount of $1,800. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. CLAIMS (2066- 2075): MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the check register as presented. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Hansen stated that regarding tax increment revenue return to the school districts, the HRA wanted staff to start working on this in the fall. However, they are going to have to wait until after the general election because the four school districts are attempting to pass referendums. He stated staff will try to have something prepared for the November meeting. 4. STATUS OF THE CORRECTIVE ACTION (CLEAN -UP) AT 57TH PLACE: Mr. Robertson stated staff received a copy of the letter the MPCA sent to the previous owner of the Rapid Oil Company. After receiving the letter, he contacted Delta Environmental who referred him to Art Newby, the Consulting Engineer for Ashland Oil Company. Mr. Newby told him they had been working on this for about one month. There is some detailed testing work which will determine the final number and location of both the withdrawal wells and the monitoring wells. Mr. Newby estimates it will take about one more month for the detailed work to be completed. Mr. Newby also estimates the clean -up program, once commenced, may take from 5 -10 years. Mr. Robertson stated he believed it will probably be about another month before anyone will know what the site constraints are while the contaminated water is being pumped from the recovery wells. Mr. Robertson stated there is going to be an aeration operation in addition to the separation tank, and the City might want to know how large the tank is and if it can be removed and put off to the side of the site so that the site can be redeveloped while the withdrawal is going on. He will ask this question of Mr. Newby. Mr. Robertson stated he has also asked Mr. Virgil Herrick to contact the Assistant AG for the Petro Board to give the City an update on what the City's legal liability may be if they were to proceed to acquire the site for redevelopment while the treatment and cleanup is going on. HOUSING & REDEVELOPMENT_ AUTHORITY MTG., OCT. 11, 1990 PAGE 3 Mr. Herrick stated he was unable to contact the Assistant AG, but he did sufficient research to answer these questions. He stated there is no question that if the HRA becomes owner of the property, under the state and federal law, it would be determined that the HRA is the responsible party. However, in this case, because Ashland Oil is a substantial corporation and because their liability would be primary to the HRA's, the practical effect of that legal liability would not be great. As the HRA is aware, there is a state fund that refunds up to 90% of the costs of treatment, and that would apply to anyone who has to expend money for treatment. In the first instance, the refund would to go Ashland Oil for whatever they expend. If the HRA acquired the property and expended money in the future, the HRA, too, would be eligible for the 90% reimbursement. There is a total limit on each site of $250,000. Mr. Herrick stated there is another factor that the HRA ought to keep in mind. That is: If the HRA acquired title and did not have a developer in hand, then the HRA might have to give some thought to whether this pollution problem would be an obstacle as far as getting financing for any future development. Usually in these cases, the financial institutions want to check with the PCA to see what the problem is and what is being done about it, but financial institutions also universally require that a developer issue some sort of a hold harmless agreement as far as the financial institution is concerned. If the HRA has a strong developer financially, then they can do this by way of an indemnity agreement or letter of credit or whatever the financial institution requires. If they have a developer that is not financially strong, then the HRA might have a problem, and this could be an additional hurdle for some developer to get financing. The safest approach would be to have a development agreement in hand and to make sure the developer has secured financing before the HRA considers acquiring the property. But, if, for whatever reason, the HRA feels they have to or want to acquire the property without having a developer in hand, they then have this additional consideration. Mr. Jerry Brill stated Ashland Oil has requested a rezoning for the purpose of redoing the Rapid Oil facility. This all depends, however, on the outcome of the concerns about pollution and the City's interest in the property. Rapid Oil is quite anxious to do something with this property to make it a more economically viable business. As far as the clean -up, Ashland Oil has never tried to duck their responsibility and they will do their part. 5. STATUS OF WINFIELD PROPOSAL FOR 57TH PLACE REDEVELOPMENT: Mr. Robertson stated that at the last meeting, HRA was shown an outline of a development agreement prepared by Jim Casserly that was forwarded to Winfield at the end of August. He spoke to Mr. Bubany, who said he did not wish to proceed until his primary HOUSING & REDEVELOPMENT AUTHORITY MTG., OCT. 11, 1990 PAGE 4 financing is lined up and until the extent of the pollution is known. Mr. Robertson stated he then met with Bill Fogerty, who informed him that the major anchor tenant, Crosstown Bank, is now uncertain whether they wish to proceed with a branch bank at this location. Mr. Robertson stated Mr. Fogerty stated he wanted to proceed with the project on his own'. Mr. Fogerty verbally outlined the following counter- proposal and said he would follow up with a written proposal. 1. HRA would acquire the Rapid Oil site through condemnation. 2. Fogerty, in addition to the duplex which he acquired two years ago, would also acquire the garage and empty land behind it. 3. Fogerty would continue to pay taxes on the land he owns plus pay the taxes and interest on the Rapid Oil site at the same rate that is being paid today. 4. In exchange, the HRA would grant him exclusive right to develop the property for the next five years. The City would not establish the TIF district or rebuild the streets and utilities until such time as the developer is ready to proceed. Mr. Robertson stated he has not yet received a written counter- proposal from Mr. Fogerty. Mr. Robertson stated he and Mr. Casserly conclude that they really do not have an experienced developer at this time for this specific proposal. What they have is a would -be developer with a desire to proceed, but who does not have a tenant who has made a location decision. He stated he believes it is in the HRA's best interest to seek another developer. Mr. Robertson stated that several months ago, staff presented the North Gateway Redevelopment Plan. One possibility would be to consider using the Rapid Oil site as an extension of the housing development which is being considered for the Phase II property directly to the north. So, rather than create a 2 1/2 acre redevelopment site for commercial, they would look at the existing street and utility pattern and see what could be put on this site in terms of residential as part of the whole residential alternative being explored by staff. Residential would start right at 57th Avenue and go north to the Alanon building. That would provide a larger mass of redevelopment land for residential that might make the project more attractive for a residential developer. With the HRA's permission, staff will analyze this alternative for the Rapid Oil site. HOUSING i REDEVELOPMENT AUTHORITY MTG., OCT. 11, 1990 PAGE 5 6. STATUS OF RIGHT -OF -WAY ACQUISITION FOR MISSISSIPPI/ UNIVERSITY AVENUE INTERSECTION IMPROVEMENTS IN 1991: Mr. Robertson stated the City has petitioned Anoka County to contract for intersection improvements on Mississippi Street on both sides of University Avenue for the 1991 construction season. He wanted to emphasize that the Council has not confirmed proceeding with the Mississippi Street project. Mr. Robertson stated that if the Council confirms the improvements and wants to proceed, staff then has to look at acquiring the Dairy Queen in November when the season is over. There is a remote possibility the Dairy Queen will fit into the Fridley Town Square project on the old 10,000 Auto Parts site. Mr. Fitch, owner of the Dairy Queen, has been talking with Mr. Scott Erickson about this possibility. Staff hopes to have some form of commitment for the HRA to consider at the November meeting. In the meantime, Teri Mau, owner and operator of the beauty parlor and tanning salon in the Levy building, which the HRA recently purchased, has expressed interested in moving into the new Fridley Town Square shopping center if the project proceeds. She has asked the HRA to consider a trade -off where, instead of paying rent for a year, she would use that rent money to pay off her business loan and that would be deducted from her relocation entitlement. Mr. Robertson stated, again, until they know for sure whether the Fridley Town Square project will proceed, this item is moot. Obviously, the first step is to determine if the Fridley Town Square project will proceed. Ms. Schnabel stated that if nothing is done with the Levy building before the Fridley Town Square project, then none of the tenants in the Levy building will be entitled to any relocation. Mr. Robertson stated that is correct. What they have to consider is that this is a Fridley business and this would be a chance for this business to stay in operation in Fridley. That is a less measurable attribute, but none the less an attribute. Ms. Schnabel stated that is a real precedent setting issue, and she is not sure the HRA should get into this kind of situation. If one tenant is given special consideration, then every tenant could ask for the same thing. Mr. Robertson stated there are a lot of variables here. He stated Ms. Mau approached the staff with this offer, and he wanted to make the HRA aware of it. Ms. Mau is aware that staff cannot even evaluate it until they know more about the schedule for the northeast quadrant. HOUSING 6 REDEVELOPMENT AUTHORITY MTG., OCT. 111 1990 PAGE 6 Ms. Schnabel stated this kind of deal would also have an affect on the HRA's relationship with Jim Kordiak as the manager of Rice Plaza, since Mr. Kordiak is entitled to 5% of the rent. Mr. Meyer stated the only way the HRA can give Ms. Mau relocation monies or any implication of it would be if the Levy building is going to be taken for redevelopment. 7. OTHER BUSINESS: a. Springbrook Apartments Mr. Robertson stated City staff has been approached by the owners of Springbrook Apartments, University Avenue Associates. As the HRA remembered, at the August 1990 meeting, the HRA passed a one year extension of the HRA's subordination agreement of the HRA's second mortgage. They have now approached the City with a proposal for a ten year mortgage through John Hancock Insurance Agency. Mr. Robertson stated he has asked Mr. Casserly to look at this proposal because the financing proposed by the John Hancock Insurance Agency is a bit unusual in that there is an assumed growth in the final value and selling price of the project from $16 million to $21 million. There is a certain amount of risk associated with this, and he would like Mr. Casserly to explain this a little further. Mr. Casserly stated that, as he understood it, Springbrook Apartments is still operating with its construction financing. University Avenue Associates have concerns with the problems of S & L's and take -out financing, so they have been doing a lot of work to find a permanent lender for their project. John Hancock Insurance Agency has made them a very interesting proposal. As he understood the proposal, what often happens with an insurance company or a lender is they want to have some equity participation. This financing is not that kind of an arrangement. What is happening is that the project has a $14 million construction loan against it. The project is worth around $16 -18 million. Apparently, John Hancock Insurance Agency would allow University Avenue Associates to reimburse themselves, the developer, for all of the costs they had during lease -up. He is assuming there is a lot of other fees in the project (almost $2 million) they have never been able to take out. So, the mortgage company would actually allow them to take $16 million of financing against the project. If they take out the construction loan of $14 million, they would have $2 million left over for the other expenses. Mr. Casserly stated if it was just that arrangement, it probably would not be too much of a problem. The problem is 9 HOUSING is REDEVELOPMENT AUTHORITY MTG., OCT. 11, 1990 PAGE 7 that the HRA has a second mortgage for $850,000, and they cannot place permanent financing on the project without dealing with the HRA's second mortgage. As soon as they pay off the construction mortgage, the HRA's mortgage moves up to # 1. And, anyone who finances the project wants to be in first position. So, no matter who they finance with, University Avenue Associates is going to have to have to ask for subordination again from the HRA. This would not be unusual, and this was originally what the HRA had bargained for. Mr. Casserly stated this is really interesting, because instead of putting a $16 million mortgage on the property, the day they close the financing, it is a $22 million mortgage. At the end of ten years, the developer has to sell the project or refinance it to pay off the $22 million mortgage. During the ten years, no principal is being paid at all- -only interest. It is what is called a "reverse amortization ", where the interest is not decreased; it is increased. Essentially, they would have a $22 million debt, and the HRA would stand behind the $22 million. In theory, they are really only paying on $16 million, because the balance they owe is increasing each year. At the end of ten years, they would pay off the HRA and do something with the project to pay off John Hancock Insurance Agency. Mr. Robertson stated the original payment schedule for the HRA's mortgage payment will stay the same. Mr. Casserly stated the developer is looking favorably at this kind of financing, and will be back with a proposal to the HRA. b. Fridley Auto Mall Project Mr. Robertson stated the HRA considered a request for tax increment assistance to the Fridley Auto Mall on 73 1/2 Avenue /University. At that time, the HRA was quite skeptical about the project, as was the Council. The Council is now considering an alternative way to assist the project and get some surplus City land back on the tax rolls. Mr. Robertson stated the City Council will be holding a public hearing on Monday, October 15, 1990, to consider declaring that land surplus. There is a provision in the State Statute that as an alternative to turning the land back to the State Commissioner of Revenue which the City would normally do, the City can also give the land to the HRA for redevelopment purposes. This is what the Council will be considering at this public hearing. Essentially, they will be asking the HRA to be a conduit so the land can be sold directly to the developer at a negotiable price, rather than having the land turned over to the Commissioner of Revenue and purchased back HOIIBING i REDEVELOPMENT AUTHORITY MTG., OCT. 11, 1990 PAGE 8 at market price. If the Council approves this option, then he will be working with Virgil Herrick on the necessary administrative procedures for using the HRA as a conduit for this surplus land. ADJOURNMENT: Vice - Chairperson Schnabel declared the October 11, 1990, Housing and Redevelopment Authority meeting adjourned at 8:10 p.m. Respectfully submitted, Lyn Saba Recording Secretary ACTION ITEMS OUSINe and REDEVELOPMENT AUTHUM COMMISSION MEMBERS: LAWRENCE COMMERS,CHAIRMAN DUANE PRARE V0431M1A SCHNABEL W ALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: October 26, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA BUWECT: Sale of Excess Property to Al Schrader for the Proposed Fridley Auto Mall After conferring with Virgil Herrick, City and HRA Legal Counsel, we believe the following steps are the most logical means by which the City can recover the proceeds from the sale of land to Al Schrader by the HRA (see attachments): 1. The City Council, by resolution, would approve the transfer of the title of the land to the HRA. This was completed Monday, October 15, 1990. 2. The City would then apply for and receive approval from the County for change in the use of the land, 3. The City would then apply for and receive approval from the State Commissioner of Revenue for change in the use of the land. 4. The City Council would then pass an ordinance declaring the land surplus and, at the same time, deed it to the HRA. JR:ls 5. Next, there would be simultaneous approval of the following documents: a. A purchase agreement between Al Schrader and the HRA b. An agreement between the City and the HRA for the HRA to reimburse the City for money received in the transaction 6. At the closing, the HRA would transfer the title from the HRA to Al Schrader, collect the money from Al Schrader, and, subsequently, transfer the money back to the City as per the above agreement. M -90 -769 I EXECUTIVE DIRECTOR: JOCK ROBERTSON 0431 UNIVERSITY AVE. ($12) 571 -3450 FRIDLEY, MN 55432 i -A DATE: October 11, 1990 TO: William Burns, City Manager J. FROM: Jock Robertson, Community Development Director Barbara Dacy, Planning Coordinator SUBJECT: Public Hearing for Declaring Portions of Lots 1, 2 and all of Lot 3, Block 1, Central View Manor as Excess Property At the September 12, 1990 meeting, the Planning Commission conducted a public hearing for the rezoning and special use permit applications for the proposed Fridley Auto Mall by Al Schrader. In recommending approval of both the rezoning and special use permit, the Planning Commission understood that part of the project would include approximately 18,500 square feet of City land if the City Council declared the land to be surplus after conducting the public hearing. The process would require the City Council to transfer the land to the Fridley Housing and Redevelopment Authority which then could negotiate a sale to the developer. By this method, the land would not have to be reconveyed to the State (see attached memo from Virgil Herrick dated September 18, 1990). Staff recommends that: 1. The City Council adopt a resolution declaring that the subject property is no longer needed for the purpose for which it was acquired and recommending that the property be conveyed to the Fridley Housing and Redevelopment Authority for purposes of assisting and improving the redevelopment of TIF District 9. That the legal description of the subject property is as.follows: All of Lot 3 and that part of Lots 1 and 2, Block 1, Central View Manor lying northeasterly of the following described line: Beginning at a point on the east line of Lot 2 distant 59.50 feet north of the southeast corner of said Lot 2; thence northwesterly to a point on the west line of said Lot 2, said point being 67.56 feet south of the northwest corner of said Lot 2; thence northwesterly to a point on the north line of Lot 1, said last point being 19.00 feet west of the northeast corner of said Lot 1 and there terminating. Generally located at 73 1/2 Avenue and T.H. 65, Anoka County, Minnesota. 2. That a copy of the resolution be forwarded to the Anoka County Commissioners requesting that they approve the change in use of the subject property and upon approving the change that an application be sent to the Commissioner of Revenue requesting approval of the change in use of the subject property. i 3. That upon obtaining approval of Anoka County and the Commissioner of Revenue, that the City Council adopt an ordinance, as required by City Charter, declaring the property surplus and after the ordinance is in effect, deed the property from the City of Fridley to the Fridley Housing and Redevelopment Authority. 1.s 1.c ZONING MAP i9 000 i Di :rvC A M�q --/Z B &I -5t, &---b alry fVMP#04SC 1 -D OUSING and REDEVELOPMENT AUTHORITY COMMISSION MEMBERS: -LAWRENCE COMMERS, CHAIRMAN DUANE PRARE VEGNIA SCHNABEL WALTER RASMUSSEN JOHN MEYER 'CITY OF FRIDLEY DATE: October 29,. 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Concept of Proposed TIF Economic Development District for New RMS Plant The RMS Company, which employs about 230 people in two shifts and is presently located at 7645 Baker Street, is considering a site on the northwest corner of Osborne Road and Main Street to consolidate operations in a new 75,000 sq. ft. building. The site is 8.9 acres and the proposed sale price is in the neighborhood of $1/2 million. Between the time that negotiations on the purchase agreement were initiated and the closing which is scheduled in 60 days, a special assessment of over $50,000 was added for utilities and was not covered under the terms of the purchase agreement. The seller, Consolidated Container, and their real estate agent, Ray Wormsbecker, have approached the HRA with inquiries about helping with reimbursement for these additional special assessments. The attached memo from Jim Casserly explains that an economic development district could be created for a very short time of up to two years to cover this special assessment. There remains, however, approximately $27,000 of local government aid (LGA) penalties which the City would sustain by the creation of an economic development district. A number of options are available: 1. The HRA, the buyer, and the seller could split the additional special assessments three ways. 2. The HRA and the seller could split the assessment half and half. 3. The HRA could create an economic development /TIF district and recover the full amount of the special assessment in two years, and the buyer and seller compensate the City for the $27,000 in LGA cuts at the time of the closing of the sale. EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (6 12) 571 -3450 FRIDLEY,.MN 55432 2 -A Concept of Proposed TIF Economic Development District for RMS Company October 29, 1990 Page 2 We will have reviewed the draft purchase agreement by the HRA meeting on November 9 and will have updated information and a recommendation for HRA concept consideration. JR:ls M -90 -773 2 -B Casserly Molzahn & Associates, Inc. 215 South 11 th Street, Suite 200 • Minneapolis • Minnesota 55403 Offices (612) 342 -2277 • Fax (612) 332 -4765 M E M O R A N D U M TO: City of Fridley Jock Robertson C FROM: James R. Casserly DATE: October 22, 1990 RE: Tax Increment Assistance for RMS RMS is looking for financial assistance to reimburse it for certain special assessment improvements. The purpose of this memo is to explain how an economic development district could be established under the new law if the HRA and the City wish to assist RMS. An economic development district can be created if the Authority finds one of the following (as provided in Minnesota Statutes, Section 469.174, subd. 12): 1. it will discourage commerce, industry or manufacturing from moving their operations to another state of municipality; or 2. it will result in increased employment in the state; or 3. it will result in preservation and enhancement of the tax base of the state. It would appear that all three statements are applicable, especially No. 1. The tax increment derived from an economic development district can only assist the project if at least 90% of the facilities (based on square footage) are used for manufacturing, processing, warehousing, storage, distribution, research and development, telemarketing and tourism facilities if outside the seven county metropolitan area. The 90% requirement may drop to 75% if the activities on the non - qualifying square footage are directly related to and in support of the qualifying activities, that is, those listed above. 2 -C Given the size of the project, the Authority would probably need to collect the increment for only 1 1/2 years. (This is dependent on a number of factors including the timing of the completion of the project, the amount of market value and so forth.) As we also discussed, the local government aid loss is also manageable. Finally, your risk can be minimized because you would not provide the assistance until a certificate of occupancy was issued. If the City and Authority wish to assist this project you can do so with little or no risk with a district that would probably need two years or less of tax increments. Let me know if you need any additional information. JRC /db cc: William Burns The 3 n n n Kordiak n n n Company n Real Estate it Property Management n Appraisals it Income Tax Service November 1. 1990 City of Fridley HRA 6431 University Avenue Northeast Fridley. Minnesota 55432 For the Following Services: Amount Due Management Fee for October 1990 Total Rent Collected 5236.75 5.009 261.84 Misc.Expenses: Total Amount Due: C !261.84 u6 3948 Central Ave. N.E. Minneapolis, MN 55421 788 -9651 788 -0911 4 November 8, 1990 City of Fridley LAKE POINTE DEVELOPMENT MAINTENANCE PROJECT NO. 197 CERTIFICATE OF COMMCTOR This is to certify that items of the work shown in the statement of work certified herein have been actually furnished and done for the above- mentioned projects in accordance with the plans and specifications heretofore approved. The final contract cost is $32,850.00 and the final payment of $6,100.70 for the improvement project would cover in full, the contractor's claims against the City for all labor, materials and other work down by the contractor under this project. I declare under the penalties of perjury that this statement is just and correct. TALHERG LAWN i SCAPE Mark Talb g, President CITY OF FRIDLEY PUBLIC WORKS DEPARTMENT ENGINEERING DIVISION 6431 University Ave., N.E. Fridley, NN 55432 November 8, 1990 Honorable Mayor and City Council City of Fridley C/O William W. Burns, City Manager 6431 University Ave., N.E. Fridley, MN 55432 Council Members: CERTIFICATE OF THE ENGINEER We hereby submit the Final Estimate for Lake Pointe Development Maintenance Project No. 197, for Talberg Lawn & Landscape, 100 Wilshire Drive, Minnetonka, MN, 55343. We have viewed the work under contract for the construction of LAKE POINTE DEVELOPMENT MAINTENANCE PROJECT NO. 197 and find the same is substantially complete in accordance with the contract documents. I recommend that final payment be made upon acceptance of the work by your Honorable Body and that the one -year contractual maintenance bond commence on November 8, 1990. Respectfully submitted, ohn G. Flora Director of Public Works Prepared by Checked by: 4 -A November 8, 1990 4 -B To: Public Works Director City of Fridley REPORT ON FINAL INBPECTION FOR CITY OF FRIDLEY LAKE POINTE DEVELOPMENT MAINTENANCE PROJECT NO. 197 We, the undersigned, have inspected the above - mentioned project and find that the work required by the contract is substantially complete in conformity with the plans and specifications of the project. All deficiencies have been corrected by the contractor. Also, the work for which the City feels the contractor should receive a reduced price has been agreed upon by the contractor. So, therefore, we recommend to you that the City approve the attached FINAL ESTIMATE for the contractor and the one -year maintenance bond, starting from the day of the final inspection that being November S. 1990. Jon'Tbelpson, Construction lnspecLOr 4 -C STATEMBT OF WORV ----------------------------------------------------------------------------------------------------------------------- - - - - -- ESTICATED UN ?T CITY OF FRIDLEY PUBLIC WORKS DEPARTMENT TOTAL CON -R4CT ITEM SUANTITY FA KE UNIT 6431 UNIVERSITY AVENUE N.E. AM,lti? Maintenance Services 1.18 32,553.28 LUMP SLIM FRIDLEY, MINNESOTA 55432 32,651.11 FROM: City of Fridley Engineering Division RE: Estitate No.7 IFIN;LI Period 18 -15 -98 to TO: Honorable Mayor and City Council 11 -15-98 City of Fridley 6431 University Avenge N.E. FOR: TAL9ER6 LAMN 6 LAN &SC Fridley, Minnesota 554;2 188 WILSHIRE DRIVE MINNETONKA, MN. 55343 DATE: NOVElSER 6, 199a LAKE FOISTE DEVELOPMENT MAINTENANCE FR:IECT 8197 STATEMBT OF WORV ----------------------------------------------------------------------------------------------------------------------- - - - - -- ESTICATED UN ?T QUANTIT'i THIS TOTAL CON -R4CT ITEM SUANTITY FA KE UNIT ESTIMATE TOTAL AM,lti? Maintenance Services 1.18 32,553.28 LUMP SLIM 3.143 1 32,651.11 TOTAL------------------------------------------------------------------------------------------------------- - - - - -- 31,658.18 MARY: Original Contract Amount Contract Additions Contract Deductions Revised Contract Amount Value Competed To Date Mount Retained To Date (81) Less Aecunt ?aid Previc; sly AN.IUNT QUE THIS EFTi1ATE CE= T1Fl!MTE OF 'ISE CONTFAC'CR fa2,ese.ee fe.ea f3 :,858. @8 f8.to fib, ?¢9.38 $b,Iff. %8 I tereby certify thit the Mork performed and the eaterisls supplied to date under the teres of the contract for this protect, and all authorizet changes thereto, have an actual value under the contract of the amounts shown on this estimate (and the final quan'ities on the final estimate are correct), and that this estivate is dust and correct and n: part of the 'AAAtcset 'D T 's Estimate' hai been received. ?y - - - - - ---- --- -------- 'HbF� rate ��— z6— �lJ Cortractor'S AJth -riz:d Representative (Titlei 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 FRIDLEY, INSPECTOR By Checked By - /PPRPAGEl*AS ePA6ErA6P IPA6ErAGPP Date s Respectfally Submitted, - CA .a 6. FlmraaP.E. a r.: 4':�= =' �'? �:s.` == FdliC kWh Director. - c .. - f`3,�.. "` -�I �t ?L s�''F. �'s�'r- .tom �a _.:.r ••- ✓ _ - � - 4 -D 5 CLAIMS (AT MEETING) INFORMATION ITEMS - OUSING and REDEVELOPMENT AUTHOR"T F COMMISSION MEMBERS: LAWRENCE COMMERS. CHAIRMAN DUANE PRARE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: October 29, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Status of Corrective Action on 57th Place At the last HRA meeting in October, staff was asked to check with the engineer working on the project, Art Newby, to get information regarding the size and the placement of the aeration equipment required for the clean -up action plan. Of particular interest to us was whether the equipment could be placed in the side yard of a new development project so that redevelopment could proceed without waiting for the completion of the clean -up action which may take several years. When I telephoned Art Newby in Nashville, he said that Jack Lemley of Ashland Oil had requested that all calls from the City of Fridley be referred to him. I then spoke with Mr. Lemley, and he was reluctant to give me any details of the clean -up operation if the City had decided to proceed with condemnation. I informed him that the City had indeed not yet decided whether to proceed with condemnation. Mr. Lemley said he would check with his attorney, Jerry Brill, and get back to us. As we go to press, he had not responded. JR:ls M -90 -777 rq EXECUTIVE DIRECTOR: JOCK ROBERTSON 0431 UNIVERSITY AYE. (012) 571 -3450 FRIDLEY, MN 55432 .. ... ...... . .. ... .. NG CENTER LOT DESIGN V4 CONC. CURB 1 11 PAVING STONE W ITAIN SYSTEM IDSCAPED AREAS) 26 SPECIAL IFORMATION. 30 5 SIDEWALK -' ..... ......... ...... ............ .. ...... .. . ...... ..... .............. 0 16 ­ PAVING STONE + 17 ...... . .. ........ ............ ... ...... ..... ........ 15 .. .............. v ci in (D _CD + . ........... .. ... . .. ..... .......... .... .. .......... 10: Av R/W e'BITUMINOUS C B ............... DAIAY -AUTO DESIGN V4 CONC. CURB REPAIR C �QUEIEN ST LAZA L . . ..... . PAVING ........... I (5'WIDE) ONE REMOVE EXIST BUS SHELTER' .............. . . . PAD a REPLACE PER DETAIL -SHEET NO. 5. BUS SHELTER TO .............. . ....... BE REMOVED B REPLACED BY MTC. SEE SPECIAL PROVISIONS. REMOVE CONC. WALK IN MEDIAN E a REPLAC DETAI E W BIT., SAND AND PAVING STON PER SHEET. NO. 5 (220' OF MEDIAN) 6A ....... . .. ..... 4o . . . . . . . . . I . . . . . . . . . � PLANNING DIVISION z -s MEMORANDUM mul DATE: October 22, 1990 TO: Jock Robertson, Community Development Director FROM: L- -Barbara Dacy, Planning Coordinator SUBJECT: Potential Relocation Sites for Dairy Queen You asked me to prepare a potential list of eligible sites to relocate the Dairy Queen located at the southwest corner of University Avenue and Mississippi Street. The attached charts identify five vacant sites and three redevelopment sites. An additional three sites are also possible; within the Fridley Town Square development, as part of the CUB Foods redevelopment site, and a portion of the Holiday Plus property. Vacant Sites We have proposed vacant sites only within the University Avenue corridor. There are three Dairy Queens in the Central Avenue Corridor. A Dairy Queen Brazier is located in Columbia Heights at 3959 Central Avenue, 8528 Central Avenue in Spring Lake Park, and at 12721 Central Avenue in Blaine. There is a Dairy Queen in New Brighton on Silver Lake Road also. All of the vacant sites in the University Avenue Corridor would permit the construction of a Dairy Queen as a permitted use. The first site is located at the northwest corner of 83rd Avenue and University Avenue. This intersection would be improved in 1991 and would become a full movement intersection. Three of the five sites are almost two acres in size. This may be too large for a 3,000 - 4,000 square foot Brazier establishment. For this reason, the Commerce Park Investment property and the Shurr property at 73rd and University Avenues may be the most attractive sites. Redevelopment Sites As part of the North Gateway planning process, the area in the southeast corner of 61st Avenue and University Avenue was T.0 Dairy Queen Relocation Y October 22, 1990 Page 2 identified as a potential commercial redevelopment site. The properties occupied by Tae Kwon Do and M & I Auto Supply could be an eligible site for the Dairy Queen. Drawbacks to this option include the amount of relocation and demolition costs that would be necessary to prepare the site, plus the perception that one is back - tracking to reach the Dairy Queen destination. Also, the Dairy Queen won't generate any more value than is already there. Fridley Town Square You also asked me to evaluate whether or not Dairy Queen could be located in the Fridley Town Square development with a drive - through window. If Dairy Queen were to be located in the proposed shopping center, three alternatives exist: 1. Placing the drive - through window at the west end of the building with traffic being circulated in a counter - clockwise direction proceeding north to west with the traffic being routed behind the building first. 2. Locating the drive - through window at the west end of the building, but reversing the traffic flow so that motorists would approach the drive - through window from the parking aisle on the far west side in front of the building instead of behind it. 3. Constructing a tunnel inside the building utilizing the west tenant space for the Dairy Queen and directing traffic through the middle of the building (John Flora's idea). Of the three options, the easiest method is the first one. The parking spaces now striped on the plan would need to be reversed in direction. Secondly, the truck loading area at the east side of Walgreen's would have to remain clear after the opening hours of the Dairy Queen establishment. In other words, we should be assured that the loading and unloading hours would be confined to 7:00 - 9:00 a.m. The width of the driveway on the east side of the building is 25 feet. A typical semi -truck dropping off merchandise will certainly occupy all of that space such that traffic would not be able to pass by. The width of the driveway to the rear of the building is only 20 feet; therefore, a one -way traffic flow is a necessity. There is enough space to provide stacking for about seven cars from almost the front of the building to the rear and around the back of the building. The five foot separation now proposed between the west end of the building and the driveway would have to be removed. More vegetation is necessary to screen the order board and the pick -up window. 7 -D Dairy Queen Relocation October 22, 1990 Page 3 along the west lot line. There is a gap in this area on the proposed landscaping plan. CUB Foods Site The SBF development proposed second parcel at the southeast corner of the CUB Foods site. The parcel was to be approximately 20,000 square feet in size and would accommodate about a 3,000 square foot size fast food restaurant. Cross parking easements were required to be executed with the CUB Foods development. Apparently this building is being pursued by a developer who wants to utilize the existing building space. He has also indicated that he would like to pursue creating a second parcel for another free- standing use. This area is zoned properly for the Dairy Queen as a permitted use. Holiday Plus Site Because this parcel is zoned C -3, a 35,000 square foot lot area minimum would have to be created. Opportunities exist either in the southeast corner of the Holiday Plus site or in the northwest corner of the site. If the lot were to be located in the southeast corner of the site, the City would need to grant a variance to permit a lot without public street access or obtain a strip through the Cattle Company Restaurant driveway area in order to get some street frontage to the parcel. Reservation of this area would not deduct usable parking spaces from the Holiday Plus site. Locating the Dairy Queen at the northwest part of the site would affect some of the parking available to Holiday Plus. Drawbacks to this option, however, is that it cannot be seen from the University Avenue right -of -way. Pizza Hut This building is now vacant and totals about 2,000 restaurant layout already exists in the building and the compan color scheme is similar. Visibility is not the best from University Avenue but may be a little better than Dairy Queen's current site. Drive - through facilities would have to be added. Summary A vacant parcel or the Pizza Hut site are the "cleanest" options. The alternative in Fridley Town Square can work, but it is shoe- horning a use in the development that wasn't originally intended. 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Orr ■n -"ip s. 0 OUSING and REDEVELOPMENT AUTHORITY COMMISSION MEMBERS: LAWRENCE COMMERS, CHAIRMAN DUANE PRARE VIRGINIA SCHNABEL WADER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: October 29,. 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Status of Target and Fridley Town Square Proposals for Center City Redevelopment Target Target informed us on October 19, 1990, that they had decided not to proceed with the projected combined NOC /CPC office space project on the southwest quadrant of University /Mississippi. They were very grateful for all the assistance we had provided them. They explained that it was a short range financial consideration in which the corporation wished to make most of its capital investment in new retail facilities while taking advantage of the very favorable office space lease market in the Twin Cities to continue leasing space for the CPC in Brooklyn Center. As a result, an alternative redevelopment proposal for the southwest quadrant will probably be a mix of housing and business as we were contemplating before the Target possibility arose. The amount of retail feasible depends to a large extent on whether the Fridley Town Square proposed for the northeast quadrant proceeds. Fridley Town Square I spoke with Scott Erickson on Monday, October 29, 1990. At this point, he feels there is a 90% plus probability of the project proceeding as proposed. Ben Steinberg, his financial consultant, will be forwarding the necessary financial details to Jim Casserly this week to determine the extent of need for TIF financing as proposed for a grant upon completion. They will have the first committee meeting with Miller Schroeder on a construction loan and a five year interim loan on Wednesday, October 31. In addition, another bank in St. Cloud also wants to furnish the primary financing and Erickson says they will obviously go with the best deal that is offered. EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (S 12) 871 -3460 FRIDLEY, MN 66432 8 -A Status of Target and Fridley Town Square Proposals October 29, 1990 Page 2 Presently, 82% of the space is now under lease agreements. He anticipates starting the final closing mechanics in mid - November to be before the holiday season in mid - December. Terri Mau, one of the proprietors of two stores in Rice Plaza, has apparently signed a contingent lease agreement to move to the Fridley Town Square project. Based on the high probability of the project proceeding, I will now consult with Jim Kordiak, our leasing agent, and Jim Casserly about the feasibility of a proposal to offset rents against future relocation payment considerations and prepare a report for the November 8, 1990, HRA meeting. JR:ls M -90 -771