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HRA 09/13/1990 - 29613� �''� r"� CITY OF FRIDLEY 80II8INa � REDEVELOPMENT AIITHORITY MEETIN�, BTPTEMBER 13, 1990 ..������....��_..���..�..�......��..��������..������..��������..�����.,.��......��.. CALL TO ORDER: Vice-Chairperson Schnabel called the September 13, 1990, Housing and Redevelopment Authority meeting to order at 7:05 p.m. ROLL CALL: Members Present: Virginia Schnabel, John Meyer, Walter Rasmussen Members Absent: Larry Commers, Duane Prairie Others Present: Jock Robertson, Executive Director of HRA Rick Pribyl, Finance Director Paul Hansen, Accountant Virgil Herrick, Attorney Jim Casserly, Development Consultant James Kordiak, Rice Plaza Property Manager Gary Jackson, Jackson-Scott & Associates (Holly Center) Jerry Wenck, Buffers, Inc. (Old Country Buffet) Doug Erickson, Fridley Focus APPROVAL OF AUGUST 9. 1990. HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION by Mr. Rasmussen, seconded by Mr. Meyer, to approve the August 9, 1990, Housing & Redevelopment Authority minutes as written. IIPON �l VOICL VOTE, ALL VOTINGi AYE� VICE-CHAIRPERSON BCHNABEI� DECLARED THE MOTION CARRIED IINANIMOIISLY. 1. STATUS OF MANAGEMENTILEASING CONTRACT FOR RICE PLAZA WITH RORDIAR REALTY: Mr. Robertson stated that staff and Mr. Kordiak of Kordiak Realty have agreed on a procedure regarding the accounting procedures involved with the management of Rice Plaza. Normally, for a private owner or a bank, the property manager sets up a trust account and does both collection and disbursements independently of the owner. In this case, being a public body, the City auditors felt that in order to retain proper control over the account, only the HRA can authorize payments. A slight modification had to be made to the management agreement whereby Kordiak Realty will collect the rent checks, collect all the bills associated with Rice r..� HOIIBINa � REDEVELOPMENT AIITHOItITY MTG.. SEPT. 13, 1990 PAGE 2 Plaza, do the bookkeeping, and once a month send in the rent checks and bills along with a monthly report to the HRA. Mr. Robertson stated Mr. Kordiak and Mr. Pribyl have reviewed this procedure and are in agreement. At the meeting, the HRA had received Mr. Kordiak's first monthly statement. Also, in the agenda is a copy of the management agreement. If the HRA members are in agreement, this will be signed by Mr. Rordiak and Chairperson Commers. Mr. Meyer asked Mr. Kordiak to explain the "maintain and repair the building and grounds as necessary" statement. Mr. Rordiak stated the responsibilities of the owner of the shopping center are minimal in many ways. The HRA is going to need to mow the lawn, pick up litter and rubbish, plow the snow, maintain the e�erior lighting, and maintain the building itself. The tenants will take care of all the interior improvements. He stated at this time, he did not see any exterior problems that need the HRA's consideration in terms of roofing, leaks, etc. But, ultimately, the owner is responsible for these types of things. He, as the property manager, would secure a number of bids for maj or kinds of j obs and select the lowest or the best price and get the work done. The HRA would then be billed. He will try to keep !� the HRA informed of any major problems. The maintenance costs, except for building improvements, are charged back to the tenants on a kind of pro-rated basis based on square footage. Mr. Meyer stated the words "maintain and repair the building and grounds as necessary" seems a little misleading for the property owner. It could be mistaken to mean that Kordiak Realty is required to maintain and repair the building out of his fee. He would recommend a minor adjustment to this duty. Mr. Kordiak stated he would be agreeable to some better language. Mr. Kordiak stated he has met with all the tenants and things are going very well. He did not anticipate any major problems in the building structure. Last month the tenants all paid their rents on a timely basis. The City and he have agreed upon a bookkeeping method for accounting purposes, and he will provide the HRA with a monthly statement. Ms. Schnabel asked if there is a bottom line dollar figure in terms of major repairs. In other words, if a major repair is over a certain dollar amount, is the HRA obligated to obtain bids; and if there are bids, are those bids to be reviewed by the HRA? Mr. Pribyl stated that is one of the reasons why they designed the � methodology for payment of expenditures the way they did. This entire activity will have to conform totally to state statutes and also according to the City Code as far as the way disbursements are �., HOII8INt3 be REDEVELOPMENT AIITHORITY MTG.. BEPT. 13. 1990 PA�3L 3 actually made. Unless the HI2A designates something different, State Statutes denote that anything in excess of $15,000 must be publicly bid. There are other benchmarks such as havinq telephone quotes, written quotes, etc. He will give Mr. Kordiak a copy of the procedures the City has for purchases under $5,000, under $10, 000, and under $15, 000. The HI2A might want to set a bench- mark of approximately $3,000 for something they want to come before the FII2A before any obligation is incurred on behalf of the HRA for the building. That is totally within the HRA's purview. Ms. Schnabel stated that if the HI2A is going to incur any major repair bills, she thought the HRA would certainly want to be made aware of it in advance of the work being done in case there is some possibility of any redevelopment. Mr. Robertson stated they can do that, even in the case of an emergency. Mr. Pribyl stated what is happening with the building is part of the communication between Mr. Kordiak and the HRA. If there are any roof problems, struetural problems, hot water heat problems, etc., he will be in constant communication with the HRA. Mr. Kordiak stated he is familiar with these kinds of limitations, ^ and he would appreciate receiving the requirements set forth by state statute and City Code. It could be included as part of the agreement. He saw no problems with these limitations. MOTION by Mr. Rasmussen, seconded by Mr. Meyer, to approve the Property Management Agreement between Rordiak Realty and the i�2A, with the provision that the duty, "Maintain and repair the building and grounds as necessary," be clarified. Mr. Kordiak stated they should probably include some language which conforms to the HRA�s system of bidding limits. IIPON A VOICE 90TE, ALL VOTINa AYE, VICE-CHAIRPER80N 8CffiJABEL DECLARED T8E MOTION CARRIED IINANIMOIISLY. 2. CONSIDERATIOId OF PURCHASING COLOR AERIAL PHOTOS OF 100 TWIN DRIVE-IN SITE: Mr. Robertson stated Mayor Nee has suggested that the HRA consider acquiring some color aerial photos which may be used in the future for marketing and promotion of the site. Staff contacted an aerial photographer who furnished staff with proofs. Mayor Nee, the City Manager, and he selected five proofs they thought would be good publicity photos. The photos can be obtained in two different packages: ^ �� � �, 80TJ8INa & REDEVELOPMSNT AIITHORITY MTa.. BEPT. 13. 1990 PAaB 4 A. The first 8 x 10 print -$215 Nine prints - $35/each Over 10 prints - $30/each 8. $500 for the proofs and the negatives Mr. Robertson stated staff feels Package B would be the most effective approach, and then they would have control over the number and size of the prints for future needs. Staff is recommending the HRA approve the purchasing of the proofs and the negatives for a lump sum of $500 from Craig Emerson Aerial Photography. OTION by Mr. Meyer, seconded by Mr. Rasmussen, to approve Package B to purchase the proofs and negatives from Craig Enerson Aerial Photography for $500. IIPON A VOICE VOTE, ALL VOTINa AYE� OICE-CHAIRPER80N BCffi�'ABEL DECLARED TSE MOTION CARRIED IINANIMOIIBLY. 3. CONSIDERATION OF PROPOSED SIGN PLAN AMENDMENT FOR HOLLY CENTER: Mr. Robertson stated the owners of Holly Center would like to amend their Comprehenaive Sign Plan to mount a new sign on a stucco facia that would be constructed over the brick parapet wall. Mr. Robertson stated he researched both the Redevelopment Plan and the Development Agreement which were included in the agenda. The relevant part of the Redevelopment Plan for the project area is on page 1- 5(agenda page 2-E), item #6. The objective is to overcome poor traffic circulation and improve the economic viability of the Center. In the Development Agreement, Section 8, page 3(agenda page 2-H), describes the improvements that were to be made to Holly Center by the company who was to make "improvement and installation of facade and signage". Mr. Robertson stated what the owners of Holly Center are proposing is in conformance with the City's existing Sign Code. It seems to be a logical and reasonable modification of the Comprehensive Sign Plan, and staff is recommending this modification. Mr. Meyer asked if any of the other tenants had any veto power on such a change. Mr. Robertson stated staff is more concerned that the other tenants understand that just because they are smaller, they cannot come back later and request their signs on the stucco facia. They need to understand that Old Country Buffet is one of the major anchor tenants and has one of the largest floor areas in the Center. Because of that, they are taking some of the allowable sign area for their particular business. �, HOIIBIN� � REDEVELOPMENT AIITSORITY MTa.. B�PT. 13. 1990 PAaE 5 Mr. Meyer stated this seems like a good proposal and it fits in well with the existing aignage. However, if other tenants wanted new signage, it could make the shopping center look cheap. Mr. Robertson agreed. Mr. Meyer asked how strongly Old Country Buffet feels about this proposed sign plan amendment. Mr. Jerry Wenck, representing Old Country Buffet as Vice-President of Real Estate, stated they do feel very strongly about this sign plan amendment for a number of reasons. Mr. Wenck stated that Old Country Buffet opened in Holly Center in 1984. Holly Center was their second store and has always been a very successful restaurant and the cornerstone of their success. In 1984 it was not a pretty center, but it was an outstanding location. They spent a considerable amount of money on restoration of the space. When the new owners purchased the Center, one of the reasons the center became attractive to them for rehab was because of the success of Old Country Buffet. At the time Old Country Buffet was first in the Center, they had two signs, one on the lower canopy and one high up on the dome portion. The sign on the �"'� dome portion was very ugly and they took it down. Mr. Wenck stated that when improvements were made to the Center by the new owners, the parking lot was redesigned for easier access and better access into the Center. In the process, Old Country Buffet lost considerable parking spaces in front of their store which affected many customers, many of whom are senior citizens and families with children. That did not help their business. They also lost a great deal of visibility and signage. They feel visibility and signage are imperative to their business. Mr. Wenck stated they now have plans into the City of Fridley for extenaive remodeling of the restaurant. Two years ago, they did some minor remodeling. They anticipate spendinq $250,000 to do the remodeling. They thought the most effective way to let their customers and old customers know that they are new and exciting is to ask the owners for permission to come before the HRA to get the sign on the parapet wall. Right now that parapet wall stands out like a sore thumb, and with this proposal it will be more attractive. The proposed signage is allowed by the Sign Code, and it will allow them to be more competitive with a number of other restaurants in the community. Ms. Schnabel asked how the owners of Holly Center feel about this proposal. �� Mr. Wenck stated the owners have indicated they would like Old Country Buffet to do this remodeling and are pleased to see the ,.-.� 80IIBINm � REDEVELOPMENT AIITHORITY MTa.. BEPT. 13. 1990 PAaE 6 facia revised to make it conform more to the Center. They have commented that it is something that probably should have been done at the time of the total renovation. Mr. Gary Jackson, Jackson-Scott & Associates, one of the partners in the ownership of the Center, stated they are supportive of this proposal by Old Country Buffet. Mr. Meyer stated that he thought it has been shown that this proposed sign plan amendment is consistent with the Redevelopment Plan. He is in favor of this new signage. Old Country Buffet's presence in Holly Center has been a great boost for the Center. His only other thought is that they might be opening up the opportunity for other tenants to ask for new signage. MOTION by Mr. Meyer, seconded by Mr. Rasmussen, that the HRA finds the proposed Sign Plan Amendment for Holly Center in conformance with both the Redevelopment Plan and the Development Agreement, with the understanding that the sign will meet the current Sign Code. IIPON A VOICE VOTE, ALL DOTINa AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED IINANIMOIIBLY. r'`� 4. CONSIDERATION OF OUTLIATE OF DEVELOPMENT AGREEMENT FOR 57TH PLACE: Mr. Robertson stated that as a follow-up to the HI2A's direction on August 9, 1990, he requested Casserly Molzahn & Associates to prepare an outline of the Development Agreement with Winfield Development for the 57th Place site. Mr. Casserly is at the meeting to discuss the outline. One of the questions was how the HRA's investments can be protected until the center is built. Mr. Casserly has responded with the structure in the form of a$450,000 letter of credit. Mr. Robertson stated they are in the final stages of the clean-up agreement between the MPCA and Rapid Oil, and they will want to move as quickly as possible to see if Winfield Development will agree to these conditions and whether they can reach a final development agreement before they are faced with the decision on whether or not they wish to proceed with acquisition of the property. Mr. Casserly stated one of the issues which is really confronting the City and the HRA is the elimination of any contamination on the site. Mr. Herrick has been working with Mr. Robertson on that issue. The MPCA has been responding to that issue also. The purpose of his memo is that once the environmental concerns gets �, resolved, how is the HI2A's investment in the site protected? This project has been before the HRA for some time now. This is a very difficult project to deal with. It is really because there is a ,.,� HOIIBINd Se REDEVELOPMENT AIIT80RITY MTG.. BEPT. 13. 1990 PA(3E 7 fairly high value that already exists on the site. There are some structures and, in tax increment terms, it has a very high base. The value of what is being proposed is not a real high value. As a result, there is not a lot of increment that is being generated by the project. Yet, it is the kind of redevelopment site that is really what the Tax Increment Act and what the HRA is all about and the reason the HI2A is interested in redeveloping this site. Mr. Casserly stated the other problem is that the developer has not been asking for any real subsidy. The developer has simply been asking the HRA to be involved in acquiring the parcels and site preparation, and then is willing to pay a fair market value for the site once it is ready for development. Mr. Casserly stated the real risk for the HI2A or any authority is the gap between the time the HRA acquires the site and the time there is the new value on the site. The problem is that as they start to ask for too much to provide for security protection, someone has to pay for it and that makes the development even more expensive and makes it harder to do. Mr. Casserly stated his memo dated August 29, 1990, is simply a proposal that went out to Winfield Development, so they have not had the proposal for very long. The major work at this point is � really with Mr. Robertson and Mr. Herrick in their efforts to try to make sure the site can be acquired in the price range being described. If it can, staff can then put together a development agreement. Mr. Casserly stated that if the environmental concerns can be sorted out, he has suggested that the HRA not acquire the property until the developer has put up a security or letter of credit which really amounts to the full price of the property. Then, at the closing, they can release the majority of that security or letter of credit. Mr. Rasmussen asked if the HRA is going to be reimbursed for any up-front costs by the HRA. Mr. Robertson stated that on January 6, 1989, the developer was asked to put up $20,000 and the down payment was $2,500. The HRA did receive that check. As outlined in Mr. Casserly's memo, before the HRA will proceed, a development agreement must be executed and one of the provisions is that Winfield would make a payment of $17,500 to compensate the HRA for a portion of its out-of-pocket costs. Mr. Robertson stated he would like the HRA's approval to proceed to negotiate a development agreement. �' Mr. Rasmussen stated he believed the HRA has already given that approval. �.� 80II8INa & REDEVELOPMENT AIITHORITY MTa.. 88PT. 13. 1990 PADE 8 Mr. Casserly stated he thought this is really more an information item than an action item. Mr. Herrick stated that if the members of the HRA object to the steps in Mr. Casserly�s outline, then they should make that objection or suggest a different approach. He has not been able to spend a lot of time reviewing it with Mr. Casserly and Mr. Robertson. His concern would be to make certain that the figure that is in the proforma in terms of acquiring the land is reasonable. If they are to engage in negotiation or condemnation, they need to make certain that they have done their best to pinpoint the cost of acquisition as carefully as possible. He atated he will work with Mr. Robertson and Mr. Casserly on this. Ms. Schnabel stated that regarding the contamination, what is the order of events? Does condemnation come first, or does the contamination clean-up have to be done first by the present owners? Mr. Robertson stated that as he understands it, this is done under the Petro F'und. In the program, the owner that is responsible for the original spill or release proposes a clean-up program to the MPCA. The MPCA can ask for modifications; but at some point, they will approve the clean-up plan if the owner follows that plan. � When the clean-up is completed and it can be demonstrated that the owner followed the clean-up plan, the owner can then apply to the MPCA for compensation. Mr. Herrick stated the important agency is the MPCA, and they are in the process of approving the program. Even after a program is approved, it is going to take several months to 2-3 years before the clean-up is completed because it is a program of groundwater pumping, treatment, etc. One of the HRA's questions will be: Is the clean-up plan adequate? The present owner has hired a professional to implement a plan, and that plan has been or soon will be approved by the MPCA. Later, if the work is not satisfactory to the MPCA, the MPCA has the authority to require additional work. Should the HRA acquire this property in the near future, that program will be ongoing. When the HRA is faced with the question of whether or not they want to proceed, it might be a good idea to have someone from the MPCA come to an HItA meeting to address the issue. Mr. Rasmussen stated that in view of the probabilities of this proj ect not going through, he thought the HRA should wait for a payment of $17,500 from Winfield before proceeding. Ms. Schnabel stated that she did not think the HRA had any objections to the staff proceeding according to the proposal as �,..� outlined by Mr. Casserly. ^ HOIIBING & REDEVELOPMENT AIITHORITY MTG., BEPT. 13, 1990 PAGE 9 5. ESTIMATES• a. Talberg Lawn & Landscape (Lake Pointe) b. Natural Green, Inc. (8/27/90, 8/29/90, 9/06/90) (Lake Pointe) MOTION by Mr. Meyer, seconded by Mr. Rasmussen, to approve the payment to Talberg Lawn & Landscape for Lake Pointe maintenance in the amount of $4,458.21; to approve the following payments to Natural Green for Lake Pointe maintenance: $47.00 (8/27/90); $47.95 (8/29/90); $90.00 (9/06/90). IIPON A VOICE VOTE, ALL VOTIN(� AYE, VICE-CHAIRPERBON 8C8NABEL DECLARED THE MOTION CARRIED IINANIMOIISLY. 6. CLAIMS (2052-2065): Mr. Pribyl stated that on page 2 of the check register, there are payments to School Districts 11, 13, 14, and 16. This is one-half of the taxes collected in payable 1990 in conjunction with the last agreement they had to return referendum levies. At the next HRA meeting will be an item for discussion and approval to go ahead with the formulation of the agreement for taxes returnable in 1991 i^� in a one year agreement as specified by the HRA. MOTION by Mr. Rasmussen, seconded by Mr. Meyer, to approve the check register as presented. IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERBON SCffiJABEL DECLARED THE MOTION CARRIED IINANIMOIIBLY. 7. STATUS OF DISTRICT ATO. 11 AND DEVELOPMENT AGREEMENT WITH FRIDLEY TOWN SOUARE ASSOCIATES: Mr. Robertson stated staff inet with Scott Erickson of Fridley Town Square Associates on Tuesday, September 12, 1990, to review the status of the project. In August after the HRA approved the pay- as-you-go tax increment note, Fridley Town Square Associates tried to close with their anchor tenant, Walgreen Drug. During the whole negotiation, the Walgreen real estate agent had assured them that the lease rate of $13.00/ft. would be acceptable. In a space of about 15 days, they were unable to reach an agreement with Walgreen at $13.00. In fact, Walgreen will only accept $11.00/ft. This has caused Fridley Town Square Associates to re-evaluate the project; and at the same time, their primary lender has increased the requirements for equity participation on the part of the owners. They are now prepared to put up a$1/4 million of the limited partnership. �� Mr. Robertson stated that at the September 12, 1990, meeting, Mr. Erickson asked if it would be feasible for both the HRA and City ,—, HOIIBINa � REDEVELOPMENT AIITHORITY MTG. BEPT. 13. 1990 PAaE 10 Council to reconsider the $315-320,000 pay-as-you-go note to a grant upon certification of occupancy of $250,000. The HRA has done this before. As a follow-up to that meeting, staff asked Mr. Casserly to prepare a proforma of what the implications are to compare it with what the HRA previously considered and recommended to the City Council. Mr. Casserly has quickly prepared an outline for the HRA. Mr. Casserly stated there are two issues, and one can be resolved rather quickly. When a developer goes from a limited revenue note requeat to a grant request, both involve no repayment. The difference is the risk involved. So, when they use this revenue note, they must remember that the revenue note is not paid unless the project pays taxes. That is the approach that has the least risk for the HRA under any set of circumstances. Mr. Casserly stated the one approach that has the second least risk is the type of a payment that goes to the developer after the building is completed. What Fridley Town Square Associates is asking for now is, instead of being paid from their own taxes over a period of some years, to be paid up front when they get a certificate of occupancy. The HI2A's real risk there is they don't pay taxes. But, at that point, it is a new building and that risk is pretty minimal unless they lose their major tenant. In this !°'°� case, the key tenant is Walgreen Drug and the permanent lender won't finance the project unless Walgreen is committed to the project, and Walgreen has qiven a commitment letter signed with intent to lease. Mr. Casserly stated that based on analyzing the risk between the two approaches, it is true that using a grant approach is riskier, but the risk is really minimized if they only provide the grant after the building is completed. If the HRA is comfortable with the risk, then the question becomes: What is the difference in the cost to the HRA? Previously, Fridley Town Square Associates was asking for $200,000 in a revenue note at 11 1/2� interest. The HRA has to compare that between a grant approach and an 8� average investment rate. Mr. Casserly stated that on one schedule, he tried to show what happens if you compare a revenue note with a grant. He used two different options. If they were to do a revenue note and did not create a tax increment district for the two additional lots but stayed with the existing district, the schedule shows that in order to pay off the $200,000 at 11 1/2� interest, it takes 10 years. If they were to use a City grant of $250,000 in this instance, using the 8� rate, it takes almost the same ten years. The difference between doing the revenue note and the grant is about 5 1/2 months. ,^ Mr. Casserly stated if the HRA wants to proceed and create this renewal and renovation district, the schedule shows that the ,-� HOIIBINa � REDEVELOPMENT AIITHORITY MTG.. BEPT. 13, 1990 PAGE il $200,000 revenue note would take about 6 1/2 years to pay off, as compared to about 7 years doing the City grant. So, about another 1/2 year is involved. Mr. Casserly stated that this is trying to point out that if the HRA wants to do the project and they become convinced that the developer really needs the grant instead of the revenue note, the HRA should not shy away from approving the project because of the difference in cost. The cost is pretty close. Mr. Casserly stated this approach is substantially different than what Fridley Town Square Associates first asked for and what the HI2A first agreed to. Mr. Casserly stated staff has asked the developer for the proformas he is presenting to the mortgage broker. Mr. Rasmussen stated that the HRA has a policy to get up-front money for any new development. If this is a new agreement than what was originally agreed upon, then maybe the i�2A should be asking for some money for out-of-pocket costs. Mr. Herrick stated that when the HRA first discussed the policy about requiring up-front money, they differentiated between ^ projects where the developer sought the HI2A out and projects where the HRA sought out the developer. How is this project categorized? Mr. Rasmussen stated this developer sought out the HRA first. Mr. Casserly stated that is probably true. Mr. Herrick stated the City Council is anxious to see this project go and get this site improved. Would it be feasible to go back to the developer and say that the HRA and, possibly the City Council, might consider the $250,000 at the time of certificate of occupancy; but as a compensation for the additional consideration, the HRA and Council would like the developer to put up $2,500 at this time to justify or compensate for the additional staff costs. Mr. Casserly stated he thought that request would be reasonable. He would suggest to the developer that upon the execution of the development agreement, one of the conditions of the development agreement would be to cover at least $2,500 of the HRA�s out-of- pocket costs. Mr. Robertson stated he will inform the developer that a policy was adopted by the HRA in July to require $2,500 from developers to help cover some out-of-pocket expenses for the City and HRA. ,-� Mr. Robertson stated this is an information item, so no action is required from the HRA. � HOOSIN(� � REDEVELOPMENT AIITHORITY MTa.. BEPT. 13. 1990 PAGE 12 8. OTHER BUSINESS: a. Possible TIF District in Onoway Addition Mr. Robertson stated the City Council has asked staff to look at and analyze the financial implications of creating a small redevelopment district in the area north of 71st Avenue (one of the original North Area Industrial Parks) where there are several older residential houses, nonconforming uses, mixed with manufacturinq zoning. There has been a very preliminary proposal for a company called Stock Roofinq Company to acquire one empty lot and one residential lot. Staff does not yet know the financial aspects of it, but wanted to make the HRA aware of this and that he is authorizing Mr. Casserly to do a preliminary analysis. It would be an opportunity to clean up some marginal residential properties that, because of their nonconfornaing status, really have no future; and they could do some creative site planning. Mr. Casserly stated this is another pro j ect that is going to be very difficult to make work, partly because of what the Legislature has done in terms of what kinds of districta they can create. This would fall under the 15 year renewal and renovation district. Mr. Meyer asked about the storage of chemicals or any contamination !"� problems on the site with the roofing company. Mr. Robertson stated there would be no storage of chemicals. He stated he did not know all the specifics but would get more information for the HRA. b. Possible TIF Assistance for The Robert Larsen Partners at Northco Mr. Robertson stated that in February when the HI2A approved Tax Increment District A1o. 10 for ATorthco on the loopback parcel at University/73rd Avenue, the City Council approved it but said they did not want to see another application from Northco from any other TIF district. Subsequently, Northco sold several lots to The Robert Larsen Partners. Larsen has completed the first phase of the University Building Center. The second phase is a similar building directly to the north. Mr. Robertson stated he received a letter from The Robert Larsen Partners saying they have encountered quite a bit more soft soil to the north. Soil correction in the first phase was $5,000, and soil correction for the second phase is going to be $70,000. Larsen Partnership is asking for consideration for financial aid from the HRA. The City Manager has discussed this with the City Council, and the City Council reminded him of their decision in ^ February that they did not want the creation of any more TIF districts in this area. �'� � n HOIIBINGi�_REDEVELOPMENT AIIT$ORITY MTQ.. 88PT. 13. 1990 PAGE 13 Mr. Robertson HI2A wishes to HRA agenda. ADJOURNMENT : stated this is for the HRA's information, and if the consider this request, he will put it on the October OTION by Mr. Rasmussen, seconded by Mr. Meyer, to adjourn the meeting. Upon a voice vote, Vice-Chairperson Schnabel declared the motion carried and the September 13, 1990, Housing and Redevelopment Authority meeting adjourned at 9:00 p.m. Respectfully aubmi ted, (.�-��--��� Lynn aba Reco ng Secretary