HRA 03/14/1991 - 6360HOUSING -AND REDEVELOPMENT AUTHORITY
NEETING,r THURSDAY, MARCH 14, 1991
7 :30 P.M.
William Burns
Executive Director of HRA
CITY OF FRIDLEY
A G E N D A
HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, MARCH 14, 1991, 7:30 P.M.
Location: City Council Chambers
Fridley Municipal Center
6431 University Avenue N.E.
CALL TO ORDER:
ROLL CALL: WELCOME NEW COMMISSIONER, JIM McFARLAND
APPROVAL OF MINUTES: February 14, 1991
ACTION ITEMS:
WRITTEN CONTRACT WITH JIM CASSERLY. . . . . . . . . . . . 1 - 1B
WRITTEN CONTRACT WITH VIRGIL HERRICK. . . . . . . . . . . 2 - 2B
APPROVAL OF CONTRACT FOR APPRAISAL OF LAKE POINTE . . . . 3 - 3E
APPROVE CONVEYANCE OF EASEMENT TO CITY
OF FRIDLEY FOR MISSISSIPPI STREET IMPROVEMENTS. . . . . . 4 - 4B
APPROVE AND AWARD BIDS FOR
LAKE POINTE MAINTENANCE PROJECT . . . . . . . . . . . . . 5 - 5C
ESTIMATES /CLAIMS . . . . . . . . . . . . . . . . . . .
. . 6
- 6C
UPDATE ON FRIDLEY TOWN SQUARE DEVELOPMENT AGREEMENT .
. . 7
- 7D
INFORMATION ITEMS:
LETTERS TO ALL FOUR SCHOOL DISTRICTS
REGARDING TIF TURNBACK . . . . . . . . . . . . . . . .
. . 8
- 8C
MEMORANDUM REGARDING RESPONSE TO SUH'S PROPOSAL . . .
. . 9
- 9E
MEMORANDUM REGARDING HRA PAYMENT TO T.C. FIELDS . . .
. .10
- 10C
MEMORANDUM FROM FINANCE DEPARTMENT REGARDING
OUR USE OF FINANCIAL CONSULTANTS . . . . . . . . . . .
. .11
LETTER ACCEPTING WALTER RASMUSSEN'S RESIGNATION . . .
. .12
MEMORANDUM REGARDING AMOUNTS THAT
MAY BE OWED TO WINFIELD . . . . . . . . . . . . . . .
. .13
REPORT ON CONTACTS WITH ASHLAND OIL . . . . . . . . .
. .14 -
14C
Housing and Redevelopment Authority Agenda
March 14, 1991, 7:30 p.m.
Page 2
UPDATE REGARDING RICE PLAZA . . . . . . . . . . . . . . .15
UPDATE ON VARIOUS MEETINGS IN LAST MONTH. . . . . . . . .16 - 16C
LRT PRELIMINARY COMMENTS : . . . . . . . . . . . . . . . .17 - 17I
STATUS OF KIFFE AUTOMOTIVE . . . . . . . . . . . . . . . .18
OTHER BUSINESS
ADJOURNMENT
a 4 CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 14, 1991
CALL TO ORDER:
Chairperson Commers called the February 14, 1991, Housing &
Redevelopment Authority meeting to order at 7:40 p.m.
ROLL CALL:
Members Present: Larry Commers, Duane Prairie, John Meyer
Members Absent: Virginia Schnabel, Walter Rasmussen
Others Present: William Burns, Executive Director of HRA
Barbara Dacy, Community Development Director
Jim Hoeft, HRA Attorney
Rick Pribyl, Finance Director
Paul Hansen, Accountant
Dr. Dennis E. Rens, Independent School Dst. #14
Jai Suh, 6440 University Avenue NE, Fridley,
MN 55432
George Borer, Attorney, 1200 Capital Centre,
St. Paul, MN
Bill Schatzlein, 4032 Grand Avenue South,
Minneapolis, MN
Doug Erickson, Fridley Focus
APPROVAL OF JANUARY 10 1991 HOUSING & REDEVELOPMENT AUTHORITY
MINUTES•
MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the
January 10, 1991, Housing & Redevelopment Authority minutes as
written.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
ACTION ITEMS:
1. RECONSIDERATION OF TIF TURNBACK TO SCHOOLS
Mr. Commers stated the HRA had received, with their agenda,
a letter from Dr. Rens, Superintendent of Independent School
District #14.
Mr. Burns stated the City had received a formal request from
Dr. Rens stating the loss of over $40,000 would mean the loss
of 1.5 teaching positions at a time of financial need for the
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 2
School District. The School District did not anticipate the
loss in the financial planning for this year. The turnback
projected for School District #14 remains the same as 1990.
There has been confusion about what is being turned back. All
of the turnback money is money collected as the result of
post -1979 school district referendum levels. The school
district's turnback is based on a 2 mill levy approved in 1983
and a 2.5 mill levy approved in 1986. There are no additional
levies since beginning the turnback program in 1988.
Therefore, growth in turnback for the school district since
1988 has been due to property appreciation and new property
placed on the tax rolls, not additional levies.
Mr. Burns stated that at an earlier meeting the HRA expressed
concern that the size of the turnback would continue to grow.
At the last meeting, Mr. Burns returned figures to the HRA
developed by the City Assessor showing the increases and
decreases for various tax increment project areas. Using this
information, between 1991 and 1992, they are going to realize
a net increase of $266,513 of value, or it looks like a 20%
revenue growth. If they apply the 20% figure to the 1991
potential turnback, it would rise to $322,800. After that,
they think the TIF return will stabilize. The main reason for
an anticipated jump in 1991 -92 is the value for the Moore Lake
Racquet Club will come on line. Copies of the City Assessor's
analysis of major projects were distributed.
Mr. Commers stated, when looking at the budget preparation
materials, he did not understand why there was money allocated
to School District #14 from the Skywood /Johnson project.
Mr. Hanson stated the Skywood /Johnson project is a
noncontiguous tax increment finance district.
Mr. Pribyl stated this was done when the district was approved
as a noncontiguous tax increment district. There were two
separate areas that were approved as part of one process.
Mr. Prairie asked if Johnson Printing is also in School
District #14.
Mr. Johnson stated it is not. The Johnson Printing parcel is
in School District #14, and the Skywood Mall parcel is in
School District #13.
Mr. Prairie asked if there is any way to separate these so it
would not be so confusing.
Mr. Pribyl stated, no, that is the way it was approved.
Mr. Commers asked if the City collected the monies.
s HOUSING & REDEVELOPMENT AUTHORITY MEETING FEB. 14 1991 PAGE 3
Mr. Pribyl stated the County collects the funds and separates
the funds by a code. Each segment of a tax increment is
assigned a code. The City has no internal allocation.
Mr. Prairie asked if the Johnson parcel is going to be turned
back.
Mr. Pribyl stated it would be returned to the tax rolls for
taxes payable in 1994.
Mr. Prairie asked if, at that point, Tax Increment District
#4 would consist solely of Skywood and if there would be no
turnback to School District #14.
Mr. Pribyl stated that all increment would then be returned
to the tax rolls as that district terminates.
Mr. Commers asked if the dollar amount is $19,955 a year.
Mr. Pribyl stated Johnson's total tax increment payable in
1991 is $101,000.
Mr. Commers stated that, of that amount, $19,955 would go to
the school district as a refund.
Mr. Hansen stated this is correct.
Mr. Commers asked if, after 1993, this would no longer be part
of the refund.
Mr. Pribyl stated this is correct. The property will be back
on the tax rolls.
Mr. Prairie stated the school district would then end up with
more.
Mr. Pribyl stated this would likely happen.
Mr. Commers asked if this matter had been returned to the HRA
by the City Council.
Mr. Burns stated that no action has yet been taken by the City
Council, so this item was returned informally to the HRA.
Mr. Prairie stated the HRA discussed this issue at their last
meeting. What has generated the increase in amount from
$66,000 to $268,000? He spoke with Mr. Jim Ferguson briefly
and thought Mr. Ferguson was under the impression the funds
are generated by levies. At that time, the HRA based some of
their thinking on that. He felt the HRA should not take any
money the school district rightfully has coming.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 4
Mr. Commers stated he thought, too, that the difference was
due to the appreciation and not an additional levy. He
thought this was clear.
Dr. Rens, Superintendent of Schools, stated he was speaking
on behalf of the Board of Education, that has indicated two
concerns. The first is serious financial difficulty. In
1989 -90 and 1990 -91, the budget has been reduced each year.
Their preliminary budget still has expenses over budget. They
see this escalating because they see difficult times for the
State. 1.5 teaching positions is a lot for our school
district. Secondly, their dollars are from the tax levy
passed by the school levy. They understand those have
increased because the values in the district have increased.
They are not increasing from last year's budget to this year's
budget. There has been no change in the dollar amount that
they put into their projections when they made decisions. He
is concerned about the timing of the decision. The Board made
financial decisions in the fall based on a given amount. If
the HRA has a concern about the total amount being returned
in the future, the School District's preference would be to
return the full amount that affects the 1990 -91 budget so they
can go ahead. The school district would have time to plan if
it would impact 1992 -93 by July so decisions made have that
considered. They were not aware of this until September and
December. The Board is asking to reconsider for those
reasons.
Mr. Prairie stated the HRA originally moved the vote back
eight months thinking it would help districts with their
budgets. Now what they have to do is go back another six
months.
Mr. Commers stated the school district is asking for a 12-
month lead time for budgets they are adopting for the next
fiscal year.
Dr. Rens stated, as an example, the Board of Education had to
make a decision by August on a referendum issue. When they
made that decision, they had $164,000 in projections over a
four -year period of time. For that reason, they decided
against the referendum. That is just one of many decisions
when he put this together.
Mr. Prairie asked if there is a way that this could be written
up so this would be done early enough.
Dr. Rens stated that under normal conditions that would be
okay, but these are not normal financial times.
'e HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 5
Mr. Prairie stated the earlier the HRA has to look ahead the
harder it is. If they know about the dates from the school
districts, it would help. Have they heard from any other of
the school districts?
Mr. Burns stated the City has not heard from the other
districts, nor have the districts heard from the City.
Mr. Pribyl stated the districts are aware of the issue, but
they may not be aware of the pending process. The districts
are aware the HRA will be returning funds at some point in
time.
Dr. Rens stated the other districts are probably not aware of
the change in amounts or are not affected.
Mr. Meyer stated he is sympathetic to the position of the
Board. The referendum decision was made late last summer not
to go for it. The Board is depending on full amount from the
HRA. At this time, he would favor changing our position with
better understanding by both parties of what they can expect
in the future.
Mr. Prairie asked if the City could notify the school
districts when this again comes up.
Mr. Burns stated the City can do this. It is something that
has been overlooked in the past. Other than School District
#14, the City has not contacted the districts.
Mr. Meyer stated the HRA concentrated on its own financial
position and thought that the districts would not mind the
decision made because it was not punitive. The HRA did not
realize that the district was looking for more but they did
discuss it.
Dr. Rens stated the Board recognizes there is nothing
punitive, and thanks the City for their support.
Mr. Commers stated there is a difference in viewpoint as to
those funds. He thought that there is a legitimate issue with
respect to the planning and decision not to go forward with
the school referendum, to that extent that weighs more heavily
in favor of paying the school a refund but he thought that the
HRA will have to address this so this will not happen again
in the future.
MOTION by Mr. Prairie, seconded by Mr. Meyer, to recommend to
the City Council approval of a full refund of TIF turnbacks
to the school districts for taxes payable in 1991, or
approximately $268,000.
HOUSING A REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991_ PAGE 6
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS
DECLARED THE MOTION CARRIED UNANIMOUSLY.
2. CONSIDERATION OF SUH REQUEST TO ACQUIRE PROPERTY:
Mr. Commers referred to the memo dated February 7, 1991, from
Mr. Burns regarding a meeting the City Manager had with Mr.
and Mrs. Suh.
Mr. Burns stated Mr. George Borer, attorney for Dr. and Mrs.
Suh, would provide information for the HRA.
Mr. Borer stated the property consists of a car wash, Burger
King and shopping center. The first proposal would be for the
HRA to purchase this property, similar to the purchases the
HRA has made with similar properties. They felt this was the
fair thing to do. Mr. Suh's property has been in this
district since 1978. His ability to rent out the center is
becoming more and more difficult for various reasons. The
real estate market is one reason. Also, long term tenants do
not want to rent because they have heard the property is in
a redevelopment district. It is also his understanding that
once there is acquisition, this property will be the last
piece to be acquired. They are asking the HRA to consider
purchasing their property as well. The placement in the
district is becoming harmful to the Suhs. There is also
refinancing coming up. They must decide what to do with the
property and the decision must be made in a short time.
Mr. Borer stated he and his client are present to ask if the
HRA would consider moving forward with this property. The
preference is that the HRA purchase the property; however,
through discussions with staff, this is unlikely. With this
being the last piece in the quadrant and a key piece, they
would like to enter into negotiations with the HRA and
consider terms. As an alternative, if this is not the
appropriate time to purchase, could the property be released
from the district in order to attract long term tenants? It
is difficult to lease because prospective tenants fear
condemnation. If the area is not going to be redeveloped in
the near future, would the HRA provide a letter stating this
so tenants can be attracted? He would like to see something
happen so his client can move forward. They would like to
see the HRA either purchase the property or allow the Suhs to
do something to their property to make it attractive to long-
term tenants.
Mr. Meyer stated a possible scenario would be that even if the
property is released from the district and improvements made,
the HRA could later decide to take the property because they
r t HOUSING S REDEVELOPMENT AUTHORITY MEETING. FEB. 14, 1991 PAGE 7
purchase the entire area. Why, under that scenario, would
Mr. Borer's client be any better off? The property would
still be in jeopardy. Would his client gain anything?
Mr. Borer stated he is not certain if this would be better,
but felt it would. The center is not going to attract top
notch tenants with the threat of condemnation. It is
certainly something that has been mentioned by tenants and
leasing agents. He did not think staff is telling anyone this
but the fact is that other property around them has been
taken. Tenants do not want a five -year lease and then have
to move. This hampers the ability to lease space. Burger
King is likely to be lost from the site as well, which will
be devastating to the site. He is willing to look at any
alternative to make the site more marketable.
Mr. Meyer stated he is trying to think of a way to take away
the stigma, short of abandoning the district for the southwest
quadrant.
Mr. Borer stated tenants question moving in if the property
is going to be condemned by the City in the near future. The
agreement would be cleaner from their standpoint if they knew
how long it would be there.
Mr. Meyer felt Dr. and Mrs. Suh would be better served to sell
to the HRA or lease back, but did not consider it a viable
option to be released from the district.
Mr. Borer stated selling is the preference. Basically, he and
his client feel that if they must keep the property for ten
years, how can they keep it in a state that is attractive.
Their desire is to sell to the HRA.
Mr. Commers asked when the owner would be refinancing.
Dr. Suh stated at the end of this month, but he has a two to
three month grace period to renegotiate.
Mr. Borer did not think refinancing would be a problem, but
they do need to make a decision about the property.
Mr. Commers stated they had talked about agreements not to
condemn or take the property for a period of time.
Mr. Borer stated such an agreement would be shown to
prospective tenants.
Mr. Commers asked if the Burger King would default now since
it is in bankruptcy.
HOUSING i REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 8
Dr. Suh thought so, but has not received a formal letter.
Mr. Commers stated, with the status, he would think it would
also impact Mr. Suh's ability to do many things.
Dr. Suh stated a developer may be talking to Burger King
directly, but he is not sure.
Mr. Commers stated this may even become a different franchise.
Dr. Suh agreed that this could happen.
Mr. Commers stated part of the issue is that, in terms of
priority, this is not a priority for the HRA. The HRA has
some difficult financial issues which need funding. There is
some issue as to their ability to purchase if the HRA elected
to do that. He asked the value of the property and what the
HRA may be able to affect.
Mr. Meyer suggested that staff sit down with the owner and
explore scenarios, and report back to the HRA at the next
meeting.
Dr. Suh stated that, since the HRA is talking about financial
difficulties, he would propose that if the HRA would decide
to purchase the property, it could be done over a period of
years. He did not need a lump sum right now.
Mr. Borer stated they have talked about a sale lease back so
the City would not end up as landlord over a period of years.
Terms are open.
Mr. Burns recommended that, since the City had just received
Mr. Borer's letter that day, staff take an opportunity to
review the letter and proposals. At this point, he did not
see a need for staff to be directed to have further talks with
the Suhs unless the HRA is contemplating buying the property.
He would like to see if there are legal implications. If the
Suhs have a proposal to make, there is no problem with
accepting their proposal, but staff has not received a
proposal. At this time, staff would evaluate any proposal
received with an eye to the legal implications.
Mr. Commers stated there is a timeframe here. The HRA needs
to respond as promptly because of the refinancing questions.
Staff was requested to review and check with legal counsel
for implications, at least to the issues raised, and meet with
the Suhs again to see if they have any suggestions or ideas.
Dr. Suh asked if Mr. Burns needed numbers from him in a
proposal.
I
e : HOUSING G REDEVELOPMENT AUTHORITY MEETING FEB. 14 1991 PAGE 9
Mr. Burns stated that, if they have a buyout plan in mind,
the Suhs were welcome to submit it for consideration.
Mr. Commers stated it may be a good idea so they can get a
feel for what the Suhs are looking at. The HRA has done their
budgeting for 1991 so that could be a problem for a short -term
decision. In the meantime, the HRA will review the issue.
If staff and the Suhs could talk in the next week or two, the
HRA could provide an answer in the next month or so.
Mr. Borer stated he thought the request to be removed by the
district had a 30 -day limit to be referred to the Planning
Commission. They would waive if that is the case.
Mr. Burns stated he is not aware of such a restriction, but
this would be referred to legal counsel.
3. CONSIDERATION OF CONTRACT FOR HOUSING REDEVELOPMENT CONSULTANT
SERVICES•
Ms. Dacy stated the purpose of the contract is to perform a
preliminary market research study to determine the feasibility
of a housing and redevelopment project in two areas. The
first is the University Avenue Gateway area in the northeast
corner of 57th Avenue and University extending up to 60th
Avenue, which contains some older commercial properties which
are now vacant; and second, the northeast corner of Rice Creek
Road and Central Avenue, part of which is in a tax increment
district. The City owns property adjacent to that area. The
property in that area has been subject to several
controversial requests, and both proposals were denied by the
City Council.
Ms. Dacy stated that in evaluating those two areas during the
last year, staff felt that there were eligible sites for a
housing project, and staff reviewed with the HRA some of our
land use goals for both of those areas. Staff believes it is
important to look at the market, determine the type of
housing, the type of density, and what type of amenity package
would be in the best interest of the City. Mr. Schatzlein
would be expected to prepare a written report and present the
findings to the HRA. The contract is an hourly contract up
to maximum of $3,500 and staff would like the report completed
by April 1, 1991. Mr. Schatzlein was present to answer
questions. Information regarding Mr. Schatzlein Is company and
references was included in the agenda. Staff recommends
approval of the contract as presented.
Mr. Commers asked what happened to the proposal for the
Mochinski property.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991_ PAGE 10
Ms. Dacy stated the developer never formally applied for a
land use application. Staff was told they were evaluating the
site as a potential redevelopment area, but staff has not
heard from them.
Mr. Burns thought Mr'. Brickner was waiting for the City.
Ms. Dacy stated the City is trying to determine what would be
the most appropriate land use. Property owners strongly
object to townhouse development and commercial development.
Unfortunately, single family does not work in redevelopment.
Mr. Commers asked if detached townhouses were constructed,
what does the preliminary economic impact show? Is there
enough there to do that kind of project?
Ms. Dacy stated that they have to get the density of at least
12 -15 units per acre to get to a break even point. That may
be unacceptable in a layout context. If the townhomes are
rental, the tax increment is larger. However, she thought
property owners will want an ownership situation rather than
rental units. Another factor is to determine whether they
want to acquire the commercial building in the immediate
corner of the intersection. That skews the scale toward the
negative side.
Mr. Commers asked if it would be beneficial to have a study.
He thought this is a zoning issue. It looks like density is
needed to make it work, and wondered if the Planning
Commission or City Council would approve a project that would
meet the minimum criteria.
Mr. Burns stated he thought it is too early to say. He
thought there were some serious challenges here. There are
three issues:
1. The market issue - What can be put there that will
sell?
2. The cost issue - What can be put there that will
produce enough increment to justify itself?
3. The political issue - What can be put there that
will satisfy the neighbors? The Mochinski property
is zoned C -2, Commercial, and it could be rezoned
residential. Soil correction is needed particularly
if a road is to be built. Another element is the
Gray Star Building which, under ideal circumstances,
should be purchased if that corner is to be
developed.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 11
Mr. Commers asked what is being considered in the area of 57th
and University.
Mr. Burns stated staff did not know for sure. The City is
looking at a mixed use project. There is approximately eight
acres from 57th northward almost to 61st Avenue. The depth
goes back to 4th Avenue. There are some residential
properties that would also be involved, if it is decided that
this would be a redevelopment area.
Ms. Dacy stated this includes the former Holiday Station,
McDonald's, Benjamin's, and Zantigo buildings, plus Frank's
Used Cars across the street.
Mr. Commers asked if a report done by April 1 would give some
sense of what the economy will be.
Mr. Burns stated there has been some preliminary analysis.
He felt that the economies have already covered as best we
can at this time.
NOTION by Mr. Meyer, seconded by Mr. Prairie, to approve the
contract as specified with Schatzlein Associates.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS
DECLARED THE MOTION CARRIED UNANIMOUSLY.
Mr. Schatzlein stated he is looking forward to the project
and bringing an independent proposal to the HRA. His goal is
to provide information to help make decisions in this area.
He will be looking at it from the market approach.
4. CONSIDERATION OF ANOKA HRA REQUEST FOR PERMISSION TO OPERATE
HOUSING PROGRAM:
Mr. Burns stated he had been contacted by Rita Ander, City of
Anoka HRA, requesting permission for them to a operate a
program for the mentally disabled in the City of Fridley.
Anoka's HRA has applied for a grant to subsidize rental
payments in apartments for up to 20 individuals. The grant
application would be more attractive if it was a multi -city
project, and they have talked to Fridley, as well as Columbia
Heights. Staff recommends the HRA let the Anoka HRA operate
a program in Fridley, but that the Anoka HRA operate the
program through the City's Section 8 Housing Coordinator.
Mr. Commers stated it seemed to be a program that deserved a
chance but he would be more comfortable if Fridley could
control the program in the City.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 12 ,
Mr. Burns stated the role of the Section 8 Housing Coordinator
would be to check out the apartment units and administer
contracts with the owners.
Mr. Commers stated there would not be a large number of
persons involved.
Mr. Burns stated the City would receive $15.00 per month per
person.
MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve the
request by the City of Anoka HRA to operate a program for the
mentally disabled in the City of Fridley, with the amendment
that it be administrated by the City's Section 8 Housing
Coordinator.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS
DECLARED THE MOTION CARRIED UNANIMOUSLY.
5. CONSIDERATION OF 1991 BUDGET:
Mr. Burns stated he had adjusted the budget numbers based on
the HRA's decision of turning back the full amount to the
school district. He also amended the capital outlay to
reflect taking out the grates for the Fridley Plaza area.
MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the
budget as amended.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY.
6. ESTIMATESICLAIMS:
Mr. Pribyl presented Check Register #2094 through #2099 for
consideration.
Mr. Prairie asked if Check #2096 was the fee paid to analyze
insurance.
Mr. Pribyl stated this is the actual insurance coverage for
the Rice Creek Plaza. This is the only one where the City
actually goes out and solicits quotes.
Mr. Commers asked Mr. Pribyl to provide a memo next month to
explain how this works.
Mr. Pribyl stated he would let them know the mechanics and
process as they get into other insurance.
.1 HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 13
Mr. Pribyl asked the HRA to note on a separate listing, Checks
#2100 to #2105, in addition to the register they had received.
These checks are listed on an additional handout.
Mr. Commers stated it is hard to keep track of the agencies
and who is doing what.
Mr. Pribyl stated that in 1985, Casserly was a financial
advisor /underwriter. He was later released and went out on
his own, and is now consulting. Then the City was looking
more toward Springstead. Now that he is operating
independently, he does not have the same level of expertise
available to him. There was some transition. In a memo to
Mr. Burns, First Trust acts as a paying agent for the City's
bond issues, while the consultants are Casserly and
Springstead.
Mr. Commers requested a description of each and their
function.
Mr. Prairie requested this memo also include a description of
appraisers.
MOTION by Mr. Meyer, seconded by Mr. Prairie, to accept Check
Register #2094 through #2105.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY.
INFORMATION ITEMS:
7. UPDATE ON FIRST WESTERN DEVELOPMENT'S PROPOSAL:
Ms. Dacy stated she had nothing more to report. The City
Council will not decide on the variances until February 25.
She has not received information on the soil correction.
Mr. Meyer asked if the YMCA property is now sold.
Ms. Dacy stated they entered into a purchase agreement.
8. UPDATE ON FRIDLEY TOWN SQUARE PROJECT:
Ms. Dacy stated the City Council tabled this item, and the
City Council will discuss at their February 25th meeting.
Mr. Commers asked if there is a final resolution as to whether
there needs to be another home taken along Mississippi.
Mr. Burns stated this was discussed and rejected by the
developer. The traffic study showed this is not necessary.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 14
9. RICE PLAZA UPDATE:
Mr. Commers asked if they had approved the Cinnamon Tanning
not paying rent.
Ms. Dacy stated the original action was
Mr. Burns, Mr. Kordiak, and she met and
of issues with a number of tenants.
release the balance of lease payments
they would make lease payments on the
payments will be made next month.
made in November 1990.
went through a number
A motion was made to
on T's Hair Plus, but
tanning salon. Rent
10. REPORT ON TIF PROPOSALS FOR 1991 LEGISLATIVE SESSION:
Mr. Burns stated that Mr. Casserly is not on the City's
payroll as a lobbyist, but is working being done for MCVA.
He does, however, have the City's best interests in mind. Mr.
Burns referred to his memo of February 4 regarding 1991 TIF
Legislation, in which he summarized the amendments. Of these,
there are three proposals that the City would stand to benefit
from: 1, 2, and 6. Realistically #1 and #6 have the greatest
chance of being considered as part of a package of technical
amendments that will be carried forward. Number 2 is regarded
as a substantive change rather than a technical change and
there may be some delay beyond the 1991 legislature. He
stated it is important, but thought that the greatest chance
of success will be with technical amendments rather than
substantive amendments during this legislative session.
Mr. Commers asked what the penalty was for hazardous housing
conditions.
Mr. Burns stated, to his understanding, in creating any new
TIF district, the City would begin to lose LGA. The LGA
penalties for the district are for beyond the fifth year.
What cities are trying to do is eliminate that penalty for
housing redevelopment districts. Item 6 refers to penalties
and interest on delinquent properties. The City is hoping to
have legislation passed so that the HRA would receive
delinquent taxes rather the County.
Mr. Commers asked if they could check with the surrounding
counties to see where they on this issue.
Mr. Pribyl stated legislation passed in 1989 made it a gray
enough area so interpretation is legal. Whether Hennepin
County uses, he did not know.
M
HOUSING A REDEVELOPMENT AUTHORITY MEETING FEB. 14 1991 PAGE 15
11. LETTER REGARDING TAX DELINQUENCY AT LAKE POINTE SITE:
Ms. Dacy stated these are information items. Notices have
been sent.
12. MEETING WITH LINVILLE PROPERTIES:
Ms. Dacy stated that the property has not been established as
a tax increment district. The information is offered for
informational purposes. She has not heard from Linville
Properties and will not pursue it until more information is
submitted.
Mr. Prairie asked if any other persons are proposing anything
for that property.
Ms. Dacy indicated they have a purchase agreement so it may
be off the market. Over the past 6 -12 months, the City has
received a number of calls.
Mr. Burns stated that, if this issue arises, the HRA will need
to decide if they want to spend excess funds to enhance out -
of- district projects.
13. OTHER ITEMS•
a. Resignation of Walter Rasmussen
Mr. Commers stated Mr. Rasmussen has resigned for medical
reasons, and he has asked staff to send a letter to
acknowledge his resignation. Mr. Rasmussen has served
faithfully for a long time.
Mr. Burns sated staff will prepare a plaque for future
recognition at a City Council meeting.
Mr. Meyer requested that all the HRA members sign the
letter.
Mr. Burns stated he would write a letter and send it out
for signatures.
b. Rapid Oil Site
Mr. Burns stated he has never received anything formally
severing Winfield from the project. His understanding
is that Mr. Robertson had received informal word that the
principal person involved from that organization was no
longer pushing the project. There were some financial
commitments made.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 16
n
Mr. Commers stated staff should check back in the minutes
to see if it was completed.
Mr. Burns stated he was not aware of commitments that
were made by the HRA or City.
Mr. Commers stated he thought a good faith deposit was
made.
Mr. Meyer stated the HRA should discuss this.
Mr. Commers requested staff to review the minutes during
the negotiations.
ADJOURNMENT:
MOTION by Mr. Meyer, seconded by Mr. Prairie, to adjourn the
meeting.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE FEBRUARY 14, 1991, HOUSING &
REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 9:20 P.M.
Respectfully submitted,
Lavonn Cooper
Recording Secretary
Y
i
[� Community Development Department
D HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 8, 1991
TO: Housing and Redevelopment Authority
FROM: William Burns, Executive Director of HRA
Barbara Dacy, Community Development Director
SUBJECT: Lake Pointe Appraisal
Attached is the proposed letter of agreement to hire Peter J.
Patchin to appraise the Lake Pointe property. Mr. Patchin is very
familiar with the Fridley area. He has recently completed
appraisal work for Medtronic. The proposed contract amount is
$5,700. We believe Mr. Patchin will prepare a thorough and
detailed appraisal for the HRA.
Staff recommends that the HRA approve the agreement as presented.
BD:ls
M -91 -164
3
FPOM : Peter J. Patchin & Associates MAR. 6.1991 4:23 PP1
QUALIFICATIONS OF
PETER J. PATCHIN, AS APPRAISER
P 4'6 A
FARLY HISTO$Y
Born in Minneapolis, Minnesota in 1934. Elementary and secondary educa-
tion in Edina, Minnesota public schools.
BUSINESS_ EXPERIENCE
Cargill, Inc., Production Trainee, 1956 -57.
U.S. Army Corps of Engineers, Topographic Mapping, 1957 -59.
General Mills, Inc., Staff Engineer, 1959 -61.
Patchin Appraisals, Inc., Staff Appraiser, 1961 -65. Vice President,
1965 -81.
Peter J. Patchin & Associates, Inc., President, March, 1981 to present.
EDUCATIONAL WORK
Kansas State University, B.S. Degree, with honors, 1956.
William Mitchell College of Law, 1977 -78
AIREA Courses IA-1, IA-2, 1B -11 lB -2, IS-3f 2 -11 2 -2, 2 -3, and 7, all
passed during 19800 Litigation Course in 1985.
Original AIREA course work passed 1964 through 1968.
Currently attends two to three appraisal seminars per year, one to
three days duration each.
Standards of Professional Practice - 1988.
PROFESSIONAL AFFILIATIONS
Member, American Institute of Real Estate Appraisers (MAI)
Senior Member, American Society of Appraisers
Business Enterprise - Intangible Property Designations (ASA)
Member, American Society of Real Estate Counselors (CRE)
Affiliate Member, Minneapolis Board of Realtors
Licensed Real Estate Appraiser - State of Nebraska
PROFESSIONAL PUBLICATIONS
"Gross Multiplier vs. Capitalization Ratest' - Valuation, November,
1971, Pages 88 - 95.
"Depreciation Methods and Market Experience" - The Appraisal Journal,
October, 1980, Pages 503 - 510.
"Grain Elevators, Three Approaches To
July, 1983, Pages 392 - 400.
"Common Sense About Cash Equivalency"
July, 1985, Pages 340 - 346.
"Valuation of Contaminated Properties"
January, 1988, Pages 7 - 16.
Value" - The Appraisal Journal,
- Theme raisal Journal,
- The Appraisal Journal,
"Market Discounts for Undivided Minority Interests in Real Estate" -
Real Estate Issues, Vol. 13, Number 2, Fail /Winter 1988, Pages 14 -16.
COURT EXPERIENCE
Qualified in District Courts in Minnesota, Michigan, Montana, and
New York
Qualified in U.S. Tax Court, State of Minnesota Tax Court, Federal Court,
District of Wisconsin
Peter J. Patchin & Associates, Inc.
FPOH : Peter J. Patchin & Associates MAR. 6.199 -1 4:24 PM P 5/6 3 -8
QUALIFICATIONS OF
PETER J. PATCHIN (Continued)
APPRAISAL EXPERIENCE
Specializing in the appraisal of industrial, commercial and special
purpose properties, primarily to estimate market value on land,
buildings, machinery and equipment and intangible assets. Appraisal
experience on various types of properties include the following:
development lands, park lands, industrial river channel lands, utility
easements, office buildings, warehouses, factory lofts, shopping
centers, hotels, restaurants, service stations, apartment buildings,
grain elevators, flour and feed mills, breweries, malt plants, food
canneries, bakeries, dairies, bottling plants, schools, churches,
hospitals, machine tools, graphic arts plants, iron foundries.
Intangible asset experience includes leasehold interests, patents,
trademarks, copyrights, mailing lists, goodwill, as well as the valua-
tion of the entire business enterprise.
APPRAISAL CLIENTS INCLUDE
Aetna Life & Casualty Co.
Bay state Milling Co.
Burlington Northern, Inc.
Cargill, Inc.
Certain -teed, Corp.
Control Data Corporation
Farmland Industries, Inc.
Garnac Grain Co.
General Mills, Inc.
International Multifoods, Inc.
Jefferson Company
K Mart Corporation
Krause - Anderson Companies
Louisana Highway Commission
Medtronics, Inc.
Metropolitan Airports Commission
Minneapolis Community Development Agency
Minnesota Department of Transportation
Minnesota Housing Finance Agency
Mennel Milling Company
North Dakota State Tax Commission
Northern States Power Company
Pillsbury Company
Ralston Purina Company
Soo Line Railroad
3M Corporation
U.S. Internal Revenue Service
U.S. West, Inc.
University of Minnesota
*The American Institute of Real Estate Appraisers conducts a voluntary
program of continuing education for its designated members. MAI's and
RM's who meet the minimum standards of this program are awarded periodic
educational certification. I am certified under this program through
September 15, 1993.
Peter J. Patehin & Ancelites, Inc.
FPOM : Peter J. Patchin & Associates MAR. 6.1991 4:25 PM P 6/6
3 -C
REFERENCES
i
Minneapolis Community Development Agency
Suite 700, Midland Square
Minneapolis, MN 55401
Contact: Mr. Don Hennessy or Paul Johnson
342 -1254
Minnesota Department of Transportation
Room 517, 'transportation Building
St. Paul, MN 55155
Contact: Mika Strapp
296 -8451
City of Shakopee
129 East l8t Avenue
Shakopee, MM 55379
Contact: Dennis Kraft, City Manager
445 -3650
Cargill, Inc.
P.O. Box 9300
Minneapolis, MN $5440
Contacts Joe Fournier
475 -7119
Control Data Corp.
8100 - 34th Avenue South
Minneapolis, MN 55440
Contact: Pat Conway
653 -4950
Land O'Lakes, Inc.
4001 Lexington Avenue
Arden Hills, MN 55440 -0116
Contact: Gary Swoverland
481 -2222
FPON : Peter J. Patchin & Associates
MAR. 8.1991 11:59 AM P Z/7
Peter J.
Patchin
& Associates, Inc.
Valuation Consultants (612) 895 -1205
101 Wept lhn- nsville Parkway, Suite 200, Burnsville, Minnesota 55337 I'AX (612) 895 -1521
March 7, 1991
City of Fridley HRA
6431 University Avenue N.E.
Fridley, MN 55432
Attn: Ms. Barbara Dace
RE: valuation Consulting and
Appraisal Services
Peter J. Patchin & Associates, Inc.
101 W. Burnsville Parkway, Ste. 200
Burnsville, Minnesota 55337
To whom it may concern:
This letter is intended to be a memorandum of understanding con-
cerning the engagement of Peter J. Patchin & Associates, Inc. for
purpose of rendering valuation consultation and /or appraisal
reports. It is understood by both parties that the nature of the
assignment is as follows:
Type of Property: 40 Acre Redevelopment Site
Location: Northwest Corner 1 -694 and
State Highway #65
Fridley, Minnesota
Function of Appraisal/
Consultation: Sale to developer.
Estimated Cost of
Services Rendered: $5,700 for appraisal report; plus
$125.00 per hour for time sub-
sequent to delivery of appraisal
report.
Terms - Total amount due within 30 days following date of
invoice, 1 -1/2% per month interest charges will be added
to accounts not paid by that time.
3 -D
e
v
FPCIN : Peter J. Patchin & Associates
Retainer Fee - to be
paid in advance of
commencement of
assignment: None
Date:
PJP:prj
client
Firm Name:
Individual Responsible:
Signature:
MAR. 6. 1991 11:59 AM
March 71 1991
P 3 %3 3 -C
Sincerely,
PETER J. PATCHIN & ASSOCIATES, INC.
By:
Peter J. Patchin, MAI, ASA, CRE
President
city of Fridley - MA
Peter J. Patchin A Acsc eiates. Inc.
ACTION ITEMS
}
r i a
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
TO: Housing and Redevelopment Authority Members
FROM: William W. Burns, City Manager�,�t
r
DATE: March 7, 1991
SUBJECT: Agreement for Legal Services with
Casserly, Molzahn & Associates, Inc.
At the HRA budget session, you asked that we prepare a contract for
legal services with Jim Casserly. I have prepared the attached
agreement and plan to present it as a decision item at the HRA
meeting on March 14, 1991.
The agreement essentially defines Jim's services as they have been
defined in past contracts, and establishes the fee at $90.00. This
is the same fee identified in a contract submitted by Jim on
December 1, 1988.
We recommend your approval of this agreement.
WWB:rsc
Attachment
1
B
AGREEMENT FOR LEGAL SERVICES
BETWEEN THE FRIDLEY
ROUSING AND REDEVELOPMENT AUTHORITY (HRA)
AND CASSERLY, MOLZAHN & ASSOCIATES, INC.
1. Term of the Agreement: April 1, 1991, through December 31,
1992.
2. Duties and Responsibilities of Casserly, Molzahn & Associates,
nc.:
A. Analyze subsidies requested by developers or offered by
the City, including:
i. Tax increment analysis;
ii. Internal rate of return analysis; and,
iii. Pro forma cash flow and balance sheet analysis.
B. Assist with any tax increment work, including the
following:
i. Modify the redevelopment project area;
ii. Establish the tax increment district and the tax
increment finance plan, including impact analyses;
iii. Prepare resolutions adopting the above;
iv. Prepare notices of public hearings;
v. Attend public hearings to provide support and
background;
vi. Prepare letters and notices for the School and
County Boards; and,
vii. Prepare letters requesting certifications and filing
documents with the appropriate jurisdictions.
C. Assist in the negotiation and preparation of contracts
for private development, assessment agreements, special
assessment agreements, interest rate reduction programs,
revenue notes, and other contractual arrangements between
the Fridley HRA and the developer.
D. Assist with any debt issuance, including recommendations
as to the size, maturity, form and sale of debt as they
relate to project analysis.
E. Assist with policy analysis and with the review and
updating of the tax increment districts.
1 -A
3. Compensation:
A. Compensation shall be at the rate of Ninety and 00 /100
Dollars ($90.00) per hour.
B. Casserly, Molzahn & Associates, Inc., shall submit an
itemized statement that clearly accounts for the hours
of service provided by Casserly, Molzahn & Associates,
Inc.
5. Other Reimbursements:
A. Casserly, Molzahn & Associates, Inc., shall be reimbursed
for long distance calls and delivery services, as well
as for any filing fees that it incurs on behalf of the
Fridley HRA. All other expenses will be included as part
of the $90.00 per hour compensation rate.
Agreed and entered into this day of March, 1991.
CASSERLY, MOLZAHN & ASSOCIATES, INC.
By
James R. Casserly
FRIDLEY HOUSING AND
REDEVELOPMENT AUTHORITY
By
Lawrence R. Commers
Chairman
By
William W. Burns
Executive Director of HRA
2
1 -B
�I
�I
r �
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
TO: Housing and Redevelopment Authority Members
FROM: William W. Burns, City Manager r,P�
DATE: March 7, 1991
SUBJECT: Agreement for Legal Services with
Herrick & Newman
In addition to preparing an agreement for the legal services of
Casserly, Molzahn & Associates, Inc., I have also prepared a
contract for the legal services to be provided by the law firm of
Herrick & Newman.
In order to determine the hourly rate, we reviewed a list of hourly
rates charged by municipal attorneys in various metropolitan area
cities. Based upon our review, I am satisfied that $85.00 per hour
is an average hourly rate, and that this is a fair and equitable
increase over the $65.00 per hour rate that Herrick & Newman is now
receiving.
We recommend your approval of this agreement.
WWB:rsc
Attachment
2
2 -A
AGREEMENT FOR LEGAL SERVICES
BETWEEN THE
HOUSING AND REDEVELOPMENT AUTHORITY
AND HERRICK & NEWMAN LAW FIRM
FOR CITY ATTORNEY SERVICES
1. HRA Attorney Appointment: The law firm of Herrick & Newman
is appointed attorney for the City of Fridley Housing and
Redevelopment Authority (hereinafter "HRA").
2. Term of the Agreement: March 1, 1991, through December 31,
1992.
3. Duties and Responsibilities of the HRA Attorney:
A. Attend monthly HRA meetings.
B. Advise staff on all legal questions pertaining to the
work of the HRA.
C. Attend other meetings pertaining to economic development
or redevelopment projects upon the request of the City
Manager.
D. Review contracts and agreements upon the request of the
City Manager.
E. Perform title work, represent the HRA in property
acquisitions and condemnations, and in the sale of
property. Perform other work related to the acquisition
or sale of HRA property.
F. Represent the HRA in other litigation.
4. Compensation:
A. The HRA attorney for the City of Fridley shall be
compensated at the rate of $85.00 per hour.
B. The HRA attorney shall submit an itemized statement that
clearly accounts for the hours of service provided by the
HRA attorney.
5. Other Reimbursements:
A. Expense advances for recording of deeds, filing fees,
charges for documents, and other expenses related to the
processing of litigation and property acquisition or sale
shall be subject to reimbursement by the City to the HRA
attorney.
B. All other expenses, such as dues, subscriptions,
telephone publications, secretarial services and
overhead, etc., associated with the performance of legal
services shall be the responsibility of the HRA attorney.
Agreed and entered into this day of March, 1991.
2
HERRICK & NEWMAN
Law Firm
By
Virgil C. Herrick
FRIDLEY HOUSING AND
REDEVELOPMENT AUTHORITY
By
Lawrence R. Commers
Chairman
By
William W. Burns
Executive Director
2 -B
:r
[� Community Development Department
i HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 6, 1991
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Consider Approval of Conveyance of Easement to
City of Fridley for Mississippi Street Improve-
ments on Rice Plaza Property
The Public Works Department has submitted to my office the attached
easement which conveys to the City of Fridley a 40 foot street,
utility, bikeway, walkway, landscaping, and street lighting
easement for the Mississippi Street improvements. Anoka County has
already received easements for the liquor store property and the
Kiffe Automotive property. As you are aware, an easement will also
be necessary after acquisition of the Dairy Queen property.
Staff recommends that the HRA authorize conveyance of the attached
easement.
For your information, we have not received a final schedule from
Anoka County as to construction;'however, we anticipate bids will
be taken in June and July with construction beginning in August.
John Flora and I will be conducting a property owner meeting prior
to the construction start to make owners and shopping center
tenants aware of the proposed improvements.
BD: Is
M -91 -155
4
Easement
Corporations) to Corporation(s)
No delinquent taxes and transfer entered;
Certificate of Real Estate Value ( ) filed
i ( ) not required
Certificate of Real Estate Value No.
19
County Auditor
by Deputy
STATE DEED TAX DUE HEREON: $
Date , 19
FOR VALUABLE CONSIDERATION, The Fridley Housing and Redevelopment
Authority. Minnesota, Grantor, a public body and Corporate politic
under the laws of Minnesota, hereby conveys an easement to The City
of Fridley. Minnesota, Grantee, a public body and Corporate politic
under the laws of Minnesota, real property in Anoka County,
Minnesota, described as follows:
See Exhibit A
The City of Fridley hereby accepts this easement for the above
mentioned purposes.
Shirley A. Haapala - City Clerk
Subject to reservations, restrictions and easements of record, if
any, together with all hereditaments and appurtenances belonging
thereto, subject to the following exceptions:
FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY
BY:
Lawrence R. Commers
Its Chairman
BY:
William W. Burns
Its Executive Director
STATE OF MINNESOTA )
)ss
County of )
The foregoing instrument was acknowledged before me this
day of , 1991, by Lawrence R Commers and William
W. Burns, the Chairman and the Executive Director of The Fridley
Housing and Redevelopment Authority. Minnesota, a public body and
Corporate politic under the laws of Minnesota on behalf of the
Fridley Housing and Redevelopment Authority.
Signature of Person Taking Acknowledgement
Title
Tax Statements for the real property
described in this instrument should
be sent to:
THIS INSTRUMENT WAS DRAFTED BY:
City of Fridley
6431 University Ave., N.E.
Fridley, MN 55432
I�
4+
11
11ghtln °t street a�rBrT A
All that easement d SC ibe bikeway
MinnesOtaPa hl h �t I E d as follows: way' landsca
2og1nning at lies northerl' Sylvan P1nq and street lls 40 sterly to the ly not °n the we y Of the Plat 7, Ano
ka
terminc southerly o n the a °r'thweslt °t line o following desCribed 1 �eY,
g• f the asterl °rner f said
N °rtheast Cow 11 Of o f said Ott.1 distant
Of said d Lot 1 thence
Lot 1 and there
a° 0
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: February 28, 1991
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Award for Bid for Lake Pointe Maintenance
Project #218
The HRA, in the 1991 budget, authorized $36,500.00 for the
maintenance service to mow and fertilize the grass at Lake Pointe
and $7,500.00 for tree /fertilizer maintenance. The bids for this
project were received Wednesday, February 27, 1991, and the lowest
bidder was Greenmasters Industries, Inc., with a bid of $27,680.00
for both maintenance projects.
Greenmasters Industries, Inc., bid $25;540.00 for the grass mowing
and fertilizer project, $965.00 for tree pruning, and $1,175.00 for
tree fertilization. Greenmasters Industries, Inc., originally had
the contract for the maintenance of the site in 1987. Talberg Lawn
& Landscape had the contract for the last two years.
Jon Thompson from the Engineering Department reports that he is
satisfied with Greenmasters' personnel and equipment. Jon Thompson
recommends, and I concur, that the HRA should award the bid to
Greenmasters Industries, Inc., at $27,680.00.
BD:ls
M -91 -148
Engineering
Sewer
Water
Parks
Streets
Maintenance
MEMORANDUM
TO: Barbara Dacy, Community Development Director PW91 -63
FROM: Jon Thompson, Construction Inspector
DATE: February 27, 1991
SUBJECT: Lake Pointe Development Maintenance Project No. 218
Bids were received for Lake Pointe Development Maintenance Project
No. 218 on Wednesday, February 27, 1991, at 10:30 a.m. The low
bidder was Greenmasters Industries Inc. with a bid of $27,680.00.
This included the Base Bid plus Alternates A and B.
Attached is a summary sheet showing the plan holders and bid
amounts. Please have the HRA approve the contract award to
Greenmasters Industries Inc. for $27,680.00 at the March 14, 1991,
HRA meeting.
JT /kn
Attachment
5 -A
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. DATE 03107/91
CITY OF FRIDLEY - HRA
PROGRAM P008
CHECK REGISTER
CHECK RUN BATCH # :O002
002 HRA
VENDOR
DISC:.
JOB
DESCRIPTION
INV # PO /INV #
SECI # PCNT
AMOUNT ACCT NUMBER
NMBR MESSAGES
2100
CHECK- PREPAID
A00040
ANOKA COUNTY TREASURER
CREATE SEL OF
TIF PARCELS 00394 -01
52UZGLO.O(►40
54.00 DR460- 202100
ACCOLWTS
PAYABLE
54.00 CR460 -10100
CASH
TOTAL VENDOR +ff# E
54.00
2101
C}fCK- PREPAID #�¢
0:00044
CASSERLY LAW OFFICE
JAN LEGAL SERVICES O0395-01
921JZ4SO.(W
155.00 DR45C► -20200
ACCOUNTS
PAYABLE
135.(() CR4,90 -10100
CASH
_IAN LEGAL SERVICES (W-M-02
52UZSB0,0000
697.50 DR455 -20200
ACCOUNTS
PAYABLE
697.50 0(4.5.5 -10100
CASH
JAN LEGAL SERVICES 00395 -03
52UZB60,0( i()
1,390,50 DR460- 202((►
ACCOUNTS
PAYABLE
1,'390.50 CR460 -10100
CASH
TOTAL VENDOR * #f
2,223.(K)
2102
rECK- PREPAID
F00072
FIRST TRUST
AGENT FEES / EXPENSES 00396 -01
52UZ400.00()
758.79 ItR, - 21()200
ACCOUNTS
PAYABLE
75.'3,79 (RW- 101(k)
CASH
TOTAL VENDOR $
758.79
2103
CHECK- PREPAID
F00023
FRIDLEY, CITY OF
19" EXPENSE'S'
(K),197 -05
52UZ570.0000
277.61 DR450 -20200
ACCOUNTS
PAYABLE
277.61 0#(450 -10100
CASH
1990 EXPENSES
((►:397 -06
521.177:!(). ()t o
121.75 ORM -20200
D(rN INTO
08VS ! r
121.75 CR450 -10100
CASH
1990 EXPENSES
(►4M -07
52UZ7M0.0((ui
410.(10 DR456- 202(X)
ACCOUNTS
PAYABLE
410.00 CR450 -10100
CASH
199() EXPENSES
((►.47 -02
52UZAPO.((ni0
32,55 DR460- 202(()
ACCOINT3
PAYABLE
3'2.55 CR460 -10100
CASH
4TH OTR ADMINISTRATIVE
BI M- 2397 -01
521IZC#}(i,(()()
37,451,75 UR460- 202(()
ACCOUNTS
PAYABLE
37,451.75 CR460 -10100
CASH
1990 EXPENSES
110397 -03
52LIZDLO.((k)()
3.07 DR460 -20200
ACCOUNTS
PAYABLE
3.07 CR460 -10100
CASH
15990 EXPENSE;
(03`77 -04
52UZGDO.0(jtj()
144.27 [IM -1- 202((►
ACCOl.INTS
PAYABLE
144.27 CR460- 101()
CASH
TOTAL VENDOR
_8,441.60
2104¢(
CHECK- PREPAID t¢
F00023
FRIDLEY, CITY OF
IAN EXPENSES
00398 -05
92UZ790. ((i(►
30.75 DR450- 202()
ACCOUINTS
PAYABLE
30,75 CR450 -10100
CASH
JAN EXPef-ES
0039R -06
5210Y0,000(►
7.06 DR455 -20200
ACCOUNT^
PAYABLE
7.06 MM -10100
CASH
JAN ADMINISTRATIVE BILLIN 00398 -01
921JZCYO.t -K)
13,108.12 DR460 -20200
ACCOLINTS
PAYABLE
13,108.12 CR460 -10100
CASH
JAN EXPENES
tj(r,MR -()2
52UZU5(►.(ij(()
30.00 DR46(r20200
ACTaINTS
PAYABLE
30.00 CR460 -10100
CASH
JAN EXPENSES
((►398 -03
52►_IZE20, (.YKK)
29.43 DR460- 11(12(()
ACC(UNTS
PAYABLE
29.43 CR460 -10100
CASH
PACE 1
0
.DATE 61/07/'?1 CITY OF FRIDLEY - HRA PAGE 2
PROGRAM SRAM PCn 1Y
CHECII RUN' BATCH # :0002
DE,s3C-RIPTION
.IAN EXPENSES
JAN EXPENSES
VENDOR
INV # PO/INV #
00393 -04
CHECK REGISTER
002 HRA
DISC.
SEQ # Pr-'NT AMOUNT ACCT NUMBER
52lUZFFO.0000 99.00 DR460 -20200
00393 -07 5.OJZFNO.0000
**** TOTAL VENDOR $
21051 CHECK- PREPAID
210113 SHENEHON- GOODLUND- TAYLOR. INC.
LETTER OF OPINION (K099 -01 52U16WO.0000
MR TOTAL VENDOR $
2106 # CHECK- PREPAID +*1*
B0 0176 BRIGGS AND Ml--RGAN PROF. ASSOC:.
LEGAL SERVICE -TAX INC: /SCH 00400 -01 5'2UZAYO.0000
¢mot TOTAL VENDOR # # $
C00044 C:ASSERLY LAW OFFICE
FEB LEGAL SERVICES 00401 -01 52UZ4ZO.0(.00
FEB LEGAL SSERVICES 00401 -02 5211ZE 0.0000
FEB LEGAL SERVICES 00401 -03 52UZ8H0.0000
FEB LEGAL SERVICES 00401 -04 92UZCHO.O000
TOTAL VENDOR $
99.00 CR460- 1010()
250,00 DR460- 202(x,
250.00 CR460 -10100
13,554,36
300.00 DR450 -20200
800.00 CR450 -10100
800.00
96.75 DR460- 2(12[10
96.75 CR46(r10100
96.75
495.00 DR450 -20200
495.00 04.40 -10100
22.50 DR451 -20200
'y2.50 CR451- 10100
1,215.() DR455 -20200
1,215.[10 CR455 -10100
1,201.75 IR460 -20200
1,201.75 CR460 -10100
2,934.25
JOB
NMBR MESSAGES
ACCOUNTS PAYABLE
CASH
ACCOUNTS PAYABLE
CASH
ACCOUNTS PAYABLE
CASH
ACCOUNTS PAYABLE
CASH
ACCOUNTS PAYABLE
CASH
ACCOUNTS PAYABLE
CASH
ACCOUNTS PAYABLE
CASH
ACCOUNTS PAYABLE
CASH
210:3
* * ** CHECK-F'REPAID
E(KKQ.2
ERNST ASSOCIATES
MAINTENANCE FOR TREES /SHR 00402 -01
52!IZADO.0000
65.00 DR455- 2(1200
ACCOUNTS PAYABLE
65.00 CR45295 -1Of00
CASH
TOTAL VENDOR `1
65.()
2109
CHECK- PREPAID #
F00023
FRIDLEY, CITY OF
FEB EXPENSES,
(10403 -04
52UZ5FO.0000
172.6`5 DR450 -20200
ACCOUNTS PAYABLE
172.65 CR450 -10100
CASH
FEB EXPENSES
00403 -05
52UZ7FO.0000
31.26 IR450 -20200
AC?xLINTS PAYABLE
31.26 CR450 -10100
CASH
FEN EXPENSES
00403 -06
52UZ7SO.(KK)
345.00 IR450 -20200
ACCOUNTS PAYABLE
345.00 CR450 -10100
CASH
FEB EXPENSES
(1(1403 -07
52UZA40. W. )
7.06 DR455- 20200
ACCOUNTS PAYABLE
7.06 CR455 -10100
CASH
--lANUFEB PERSONAL SERVICES 00403 -01
521-IZD50. (0001
13, 612.62 I 8460- 2020x,
ACC[ iNTS PAYABLE
13,612.62 0460 -10100
CASH
FEB EXPENSES
00403 -02
52UZFVO.0000
40.`d) DR460 -20200
ACCIDUNTS PAYABLE
40.50 CR4 4 -10100
CASH
FEB EXPENSES
00403 -03
52UZMl -J. WOO
135.03 IR460 -20200
ACCOUNTS PAYABLE
135.03 CR460 -10100
CASH
6 -A
DATE O3/07/91 CITY OF FRIDLEY - HRA
PAGE 3
PROGRAM PODS CHECK REGISTER
6-B
CHECK RUN BATCH # : 0062 (102 HRA
VENDOR D :+t:.
JOB
DESCRIPTION INV # PO - /INV # SECS # PCNT
AMOUNT ACCT NUMBER
NMBR MESSAGES
3*** TOTAL VENDOR $
14,394.12
2110 CHECK- PREPAID#
H00019 HERRICK & NEWMAN
FEB LEGAL SERVICES 00404 -01 52UZ5MO.0(K)0
357.00 DR45O -20200
ACCOUNTS PAYABLE
357. () CR450- 101(K,
CASH
FEB LEGAL SERVICES (X)M)4 -02 52U29rF0.0000
570.00 DR455 -20200
ACCOUNTS PAYABLE
570.00 CR455-10100
CAM
FEB LEGAL SERVICES (x)404 -03 52UZDDO,0KKK►
744.00 CR460 -20200
ACCOUNTS PAYABLE
744.00 CR46-0 -10100
CASH
$ � TOTAL VENDOR # $
1,671.00
2111 ¢ 04ECK- PREPAID ****
I(KK) 11 INDEPENDENT g.--:H. DISTRICT #11
2ND & FINAL PAYMENT (KW)!, -01 52UZI60.000()
6,426.24 DR460- 202100
ACCCKMITS PAYABLE
6,426,24 CR4b0 -10100
CASH
¢ TOTAL VENDC►R $
6,426,24
2112 rwr.k,- PREPAID ****
I00013 INDEPENDENT SX:H. DISTRICT #13
2ND & FINAL PAYMENT 00406 -01 52U71DO.0000
10,291.80 DR460 -20200
ACCOUNTS PAYABLE
10,291,80 CR460 -10100
CASH
¢+� TOTAL VENDOR $
10,291.80
2113 1 CHECK - PREPAID *#**
I0(06 INDEPENDENT SC1i. DISTR. NO. 14
2ND & FINAL PAYMENT 00407 -01 92UZGLlO.O(K)O
67,945.33 DR460- 202r.KO
ACCOUNTS PAYABLE
67,945,33 CR460 -10100
CASH
t TOTAL VENDOR ## $
67,945.3 =3
2114 2 CHECX PREPAID t ***
I(K)O16 INDEEPENDENT SCH. DIST #16
2ND & FINAL PAYMENT 004008-01 92UZI KO. (KKOO
23,809.63 DR46O- 2'0200
ACCOUNTS PAYABLE
23,809.63 CR464r10100
CASH
¢ TOTAL VENDOR ¢ $
2231809.63
3FtiFk TOTAL NUMBER OF CHECKS WRITTEN : OCK1000 **** TOTAL DOLLARS FOR CHECKS WRITTEN $
1833,465.27 **** LAST CHECK NUMBER OOC
TO: FRIDLEY H.R.A.
FROM: CITY OF FRIDLEY
RE: BILLING FOR OPERATING EXPENSES FOR FEBRUARY, 1991
AND FEBRUARY 1991 ADMINISTRATIVE EXPENSES
FEBRUARY ADMINISTRATIVE PERSONAL SERVICES
* JANUARY /FEBRUARY ADMINISTRATIVE OVERHEAD
TOTAL ADMINISTRATIVE BILLING
OPERATING EXPENSES:
13,108.12
504.5
13,612.62
LUNCHES - BUDGET MEETING 40.50
LUNCHES: MEDTRONICS, CATTLE COMPANY -
MCDA, WHITNEY HOTEL 185.03
JANUARY MANAGEMENT FEE - KORDIAK REALTY
RICE PLAZA 172.65
ELECTRICITY - RICE PLAZA 31.26
SNOW PLOWING - RICE PLAZA 345.00
ELECTRICITY - LAKE POINTE 7.06
TOTAL OPERATING EXPENSES FOR JANAURY $781.50
TOTAL EXPENDITURES
$14,394.12
*This is a new charge based on estimate of HRA's pro rata
share of building operation costs.
6 -c
a
l�
r _
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 8, 1991
TO: Housing and Redevelopment Authority
FROM: William Burns, Executive Director of HRA
Barbara Dacy, Community Development Director
SUBJECT: Fridley Town Square Redevelopment Plan Amendment
On February 25, 1991, the City Council approved Scott Ericson's
request to amend the redevelopment plan to add a drive - through
window at the west end of the proposed shopping center. City
Council placed a number of stipulations on the approval beyond the
original 17 stipulations that were approved in June 1990. One of
the 18 additional stipulations was to require a $10,000 letter of
credit to be retained for two years to ensure that the double
baffle air filtration system from the fast food restaurant performs
properly and also that money is available for a traffic study if
significant changes in traffic patterns occur.
Attached for discussion by the HRA is Jim Casserly I s memo regarding
the equity participation component of the proposed development
contract. Casserly will be present at Thursday's meeting to
discuss this in more detail with the HRA.
WB /BD:ls
M -91 -165
7
7 -A
Casserly Molzahn & Associates, Inc.
215 South 11th Street, Suite 200 • MWORPOUS • Minnesota 55403
Qt%ce (612) 342 -2277 • Fax (617) 332.4765
N E X O R A N D U M
TO: Fridley H.R.A.
FROM: James R. Casserly
DATE: March 3, 1991
RE: Update on Recapture Provisions for Town Square Contract
In December of 1990, the HRA discussed the concept of having an
equity participation for its 250,000 investment in the Fridley
Town Square project. The March 1, 1991 draft of the Contract
between the HRA and Town Square Associates provides for such
equity participation.
A very brief overview of the Contract is as follows: the HRA
would invest 250,000 (see Section 3.3) in the project upon the
issuance of a Certificate of Completion (see Section 4.4). The
Developer Would have to build the projoot as deocribed (nee
definition of Minimum Improvements) and would execute an
Assessment Agreement (see Article IX) stating the minimum market
value (see definition of Estimated Market Value). The HRA
investment would be secured by a second Mortgage (see Section
7.7).
The mechanics for the equity participation are found in Section
I, Definitions, and Section V110 Repayment and Security of Equity
Investment and would work as follows: Upon the transfer of the
project the Net Appreciation of the project would be calculated
and would be multiplied by a fraction that represents the ratio
of the HRA investment to the Developer investment. The minimum
return to the HRA is 100,000 and the maximum return would be
300,000. The Developer has the option in Section 7.5 of repaying
the equity participation with interest over five years.
Several issues still need resolution including problems resulting
from the HRA Second Mortgage. There will be numerous technical
changes but the final contract should be substantially as it
appears.
TONN SQUARE EQUITY
PARTICIPATION AGREII
1. Net appreciation of project x ratio of HRA equity investment
to developer's equity investment.
2. Minimum return to HRA = $100,000.
3. Maximum return to HRA = $300,000.
4. If sale within 2 years from certificate of occupancy, then
250,000 is returned.
5. If project is not sold at the end of 7 years, project is
appraised. IW%A receives return based on current appraisal.
6. Net appresciation = sale price - (Developer's investment +
13% return on investment for each year of project life +
mortgage balance).
7. Repayment to KRA may be amortized with interest over 5
years.
7 -B
LE ,
Project Costs 2,500,000
Developer Cash & Net Total Inv. 350,000
Authority Investment 250,000
Ratio of Authority Inv. to Dev. Inv. 711%
Mortgages 21000,000
Cash on Cash Return Rate 13%
Sale Price l,5UU,000
Sale Date 2 Years
Net Appreciation 59,000
HRA Repayment 41,890
However, the minimum repayment to the Authority is 100,000. So
in this example, the developer receives 50,000 qross profit fqr
his 350,000 investment.
7 -C
MAP C17 191 12:33 FLINTb12 :jam z5-1wC
EXAMPLE 2
Project Costs 2,500,000
Developer Cash & Net Total.Inv. 350,000
Authority Investment 250,000
Ratio of Authority Inv. to Dev. Inv. 711
Mortgages 2,000,000
Cash on Cash Return Rate 13%
Sale Price 3,500,000
Sale Date 7 years
Net Appreciation 831,500
HRA Repayment 590,365
The Maximum repayment to the Authority is 300,000. In this
instance, the developer receives a gross profit of 950,000 for
his 350,000 investment.
7 -D
INFORMATION ITEMS
FRIDLEY MUNICIPAL CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY, MN 55432 • (612) 571 -3450 • FAX (612) 571 -1287
March 7, 1991
Dr. Dennis E. Rens
Superintendent of Schools
Independent School District #14
6000 West Moore Lake Drive
Fridley, MN 55432
Dear Dr. Rens:
Enclosed is the second and final referendum refund payment, in the
amount of $67,945.33, for payable year 1990. This amount is
$82,268.03 (one half of total) less delinquents of $14,322.69.
Recently, the Fridley HRA has spent much time discussing the amount
of discretionary referendum levy monies to return to the school
districts. At the February 14, 1991 meeting the HRA agreed to
return the full amount of the discretionary refunds to the school
districts for payable 1991. This amount is ESTIMATED to be about
$14,805.20, the same as payable 1990, before delinquent taxes are
subtracted. After closely analyzing their own financial situation,
it is highly likely that the Fridley HRA will put a cap on the
amount of discretionary money returned for payable 1992 and the
following years. Therefore, when preparing for the 92/93 school
year budget it would be prudent not to budget as much money as in
the past until the HRA has made a decision on the amount they will
return.
If you have any questions, please feel free to call me.
Sincerely,
Richard D. Pribyl
Finance Director
RDP /ph
FRIDLEY MUNICIPAL CENTER • 6131 UNIVERSITY AVE. N.E. FRIDLEY. MN 55432 • (612) 571 -3450 • FAX (612) 571 -1257
March 7, 1991
Dr. Conrad (Tim) Rummel
Superintendent of Schools
Independent School District #13
1400 49th Avenue N.E.
Columbia Heights, MN 55421
Dear Dr. Rummel:
Enclosed is the second and final referendum refund payment, in the
amount of $10,291.80, for payable year 1990. This amount is
$17,049.47 (one half of total) less delinquents of $6,757.66.
Recently, the Fridley HRA has spent much time discussing the amount
of discretionary referendum levy monies to return to the school
districts. At the February 14, 1991 meeting the HRA agreed to
return the full amount of the discretionary refunds to the school
districts for payable 1991. This amount is ESTIMATED to be about
$14,805.20, the same as payable 1990, before delinquent taxes are
subtracted. After closely analyzing their own financial situation,
it is highly likely that the Fridley HRA will put a cap on the
amount of discretionary money returned for payable 1992 and the
following years. Therefore, when preparing for the 92/93 school
year budget it would be prudent not to budget as much money as in
the past until the HRA has made a decision on the amount they will
return.
If you have any questions, please feel free to call me.
Sincerely,
r 1.
Ae
Richard D. Pribyl
Finance Director
RDP /ph
CITYOF
FRIDLEY
FRIDLEY MUNICIPAL CENTER • 6131 UNIVERSITY AVE. N.E. FRIDLEY. MN 55432 • (612) 571 -3450 • FAX (612) 571 -1287
March 7, 1991
Dr. Chris L. Huber
Superintendent of Schools
Independent School District #16
8000 Highway 65 N.E.
Minneapolis, MN 55432
Dear Dr. Huber:
Enclosed is the second and final referendum refund payment, in the
amount of $23,809.63, for payable year 1990. This amount is
$24,179.32 (one half of total) less delinquents of $369.68.
Recently, the Fridley HRA has spent much time discussing the amount
of discretionary referendum levy monies to return to the school
districts. At the February 14, 1991 meeting the HRA agreed to
return the full amount of the discretionary refunds to the school
districts for payable 1991. This amount is ESTIMATED to be about
$14,805.20, the same as payable 1990, before delinquent taxes are
subtracted. After closely analyzing their own financial situation,
it is highly likely that the Fridley HRA will put a cap on the
amount of discretionary money returned for payable 1992 and the
following years. Therefore, when preparing for the 92/93 school
year budget it would be prudent not to budget as much money as in
the past until the HRA has made a decision on the amount they will
return.
If you have any questions, please feel free to call me.
Sincerely,
Richard D. Pribyl
Finance Director
RDP /ph
= I Community Development Department
D HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
TO: Housing and Redevelopment Authority Members tt
FROM: William W. Burns, Executive Director of HRA q1�.
DATE: March 4, 1991
SUBJECT: Response to Suh's Attorney
Since the last HRA meeting, I have had Virgil review the
suggestions of George Borer, the attorney for Mr. and Mrs. Suh.
Virgil, in general, did not feel that the City's legal liability
to Mr. and Mrs. Suh was very substantiall He pointed out past case
history seemed to indicate that any potential damage the City might
have caused to Mr. and Mrs. Suh is not equivalent to other
instances where the Courts have held in favor of cities.
Virgil also recommended against taking the Suh property out of the
Southwest Quadrant tax increment district, and suggested that we
do not agree to postpone condemnation for any given period of time.
With the benefit of Virgil's recommendations, I called Mr. Borer.
In our conversation, I repeated Virgil's recommendations. I also
pointed out that if Mr. and Mrs. Suh wanted to make an offer we
could not refuse, they were certainly welcome to do so. However,
I informed to Mr. Borer that in doing this, we were not proposing
beginning negotiations, but were simply saying that we would
consider any offer they might want to make.
Mr. Borer indicated that he will respond shortly with a proposal
from Mr. and Mrs. Suh. We might have a proposal by the next HRA
meeting. If you feel that we should proceed in a different
direction, please let me know. Thank you for reviewing this
matter.
WWB:rsc
Attachments
f.
MEMORANDUM
Municipal Center
_ 6431 University Avenue N.E. Office of the City Manager
Fridley, MN SS432 William W. Burns
CITYOF (612) S71 -34SO
FWDLEY
TO: File
FROM: William W. Burns, City Manager
DATE: March 4, 1991
SUBJECT: Suh Property
On March 4, 1991, I reviewed Virgil's legal opinion on the Suh
property with George Borer on the telephone. I indicated to him
that case law did not seem to support the obligations of the
Fridley HRA to purchase the Suh property. Moreover, we were
constrained by our bond issue from removing the Suh property from
the HRA district. Finally, while there was no specific case
history, there was other state law that would tend to indicate that
the HRA should not give away its condemnation authority or its
right to condemn the Suh property until sometime in the future,
five years or more away.
I did indicate to Mr. Borer, however, that although the City was
not eager to land bank or own the Suh property, we would be happy
to consider any proposal that they would make. Mr. Borer indicated
that he would prepare something and get back to us soon.
WWB:rsc
9 -A
HERRICK NE� ,,Vl-,N
ATTORNEYS AT LAW
4{
Virgil C. Herrick
James El. Hoeft MEMORANDUM
Gregg V. Herrick
Of Counsel
David P. Newman
TO: William Burns
FROM: Virgil C. Herrick
DATE: February 22, 1991
RE: Request for legal opinion regarding Suh property
This Memorandum is in response to your request dated February 20,
1991, regarding the above subject. You have requested that I
review the letter sent to the City by George Borer, attorney for
Mr. and Mrs. Suh. I have been asked to comment regarding the
options contained in that letter and state my opinion whether the
City has any legal liability and whether these options are
desirable.
You also asked me to respond to
Billings. Mr. Billings has ask,
liability if we stipulated that
amendment is to be approved for
restaurant. I will answer both
Memorandum.
a question by Councilman Steven
ed whether we would increase our
the Fridley Town Square project
the relocation of the Burger Ring
of your requests in this
Mr. Borer has asked that the HRA take one of three actions as
they relate to the property of Dr. and Mrs. Suh. The first, and
preferred action, would be to have the HRA purchase the Suh
property. If the HRA declines to purchase the Suh property Mr. Borer
has suggested two alternatives. The first alternative would be
to delete the Suh property from the HRA redevelopment plan. The
second alternative would be for the HRA and /or the City to enter
into an agreement with the Suhs that they would not condemn the
property for a period of at least five years.
In support of Mr. Borer's request he has indicated that 1) the
Suh property has been in the development district for an
unreasonable time period; 2) that because the property is in a
redevelopment district this fact has diminished the owners'
investment expectations; and 3) the property owners need to make
improvements to the property in order to attract tenants and that
it is not fair to the owners to be required to make investment in
the property when they do not know how long they will retain
ownership of the property.
Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612 -571 -3850
9 -C
William Burns
ti February 22, 1991
Page -2-
The Suhs' basic complaint is that they have been adversely
affected by the redevelopment plans of the Housing and
Redevelopment Authority. Assuming this to be true it does not
create a liability on the part of the City or the HRA. This
issue was decided by the Minnesota Supreme Court in the case of
Orfield v. Housing and Redevelopment Authority of St. Paul, 305
Minn. 336, 232 NW 2d 923 (1975). In that case the property
owners filed a suit to compel condemnation on the basis of an
alleged taking, damaging or destroying of their property. The
claim was that the redevelopment had caused them to lose tenants,
acquire undesirable tenants and caused difficulty in obtaining
caretakers. The property owners also claimed that the action of
the HRA had caused them to suffer substantial losses in profits
over the preceding years. The Court stated that the petitioners
could only be granted condemnation if the HRA's activities
constituted a direct and substantial invasion of their property
rights and consequent diminution in their property values, that
it amounts to a taking. The Court held that under the facts in
that case that it did not constitute a taking. In reviewing the
facts of the Orfield case it is my conclusion that the damage
caused to the property owners in that case was substantially more
severe than those involving the Suh property. The Orfield case
was followed more recently in the case of Fitger Brewing Company
v. The State of Minnesota, 416 NW 2d 200. Again, in the Fi_tger
case, the property owners suffered substantially greater damage
by the action taken by the government agency than is true in the
Suh situation. I am of the opinion that neither the City nor the
HRA has any legal liability as it pertains to the Suh property.
Clearly the HRA could enter into negotiations with Dr. and Mrs.
Suh and purchase the property. The only requirement would be
that the purchase would be for a public purpose. Inasmuch as the
property is in a redevelopment district and the HRA is actively
pursuing a developer this purchase would be for a public purpose.
This would be similar to the HRA having purchased the Rice Creek
Plaza and the building housing the Fridley Municipal Liquor
Store.
10
William Burns
February 22, 1991
Page -3-
Whether the HRA should purchase this property at this time is an
economic decision. The owners may be willing to sell at an
attractive price. However, considering the past success in
finding a developer, it might be necessary for the HRA to hold
the property for a substantial time. In view of the present real
estate market I would be reluctant to purchase this property at
this time.
I do not believe that the HRA can or should delete the Suh
property from the HRA development plan. There is a provision in
the statute that would authorize an amendment to the boundaries
of the development district. However, the HRA has issued bonds
and has pledged the properties within the development district as
security to the bond holders. I have discussed this matter with
Jim Casserly and we both agree that there would be a legal
question about removing property that has been pledged to support
outstanding bonds.
As a second alternative Mr. Borer has requested that the HRA or
the City enter into an agreement not to condemn the Suh property
for a period of at least five years. Again, I do not feel that
the City or the HRA can or should enter into this type of
agreement. There are no specific Minnesota cases dealing with
the question of whether a municipality may contract away its
right to enter an eminent domain proceedings. However, McQuillan
on Municipal Corporations, at Section 32.14, states "a municipal
corporation cannot surrender the power of eminent domain
conferred upon it nor bind itself to a restricted exercise of the
power ". Several cases from other states are cited supporting
this proposition.
Aside from the specific question of whether a municipality can
contract away its eminent domain authority there are two basic
rules of law that would apply. The first is that a municipality
cannot enter into a contract to surrender its authority granted
to it by the legislature. The second basic principle is that one
city council cannot enter into an agreement to bind a future
council. This general principle does not apply to certain types
of contracts but in my opinion would apply to a restriction
placed on a future council to exercise a police power or an
eminent domain power.
9 -D
IN
William Burns
February 22, 1991
Page -4-
Councilman Billings has asked the question whether the City would
incur any liability if we stipulated that the Fridley Town Square
project amendment is to be approved for the relocation of the
Burger Ring restaurant. The developers of the Town Square project
have petitioned the City to amend the development plan to
authorize a drive -thru restaurant. At the last council meeting
they indicated that they would limit this request to the Burger
Ring restaurant which is presently located in the southwest
quadrant of Mississippi and University in property owned by Dr.
and Mrs. Suh. Neither the City nor the HRA have done anything to
interfere with any contract rights between Burger Ring and the
Suhs. Burger Ring has come to the City requesting permission to
move their business from one location to another. If they have
any leasehold obligations with the Suhs that is a matter between
private parties. If they do not they are free to move their
business to any location that is properly zoned. I do not feel
that the City would incur any liability by approving the request
of the Town Square developer and Burger Ring to authorize their
location within the Town Square project.
VCH lal
9 -E
FINANCE DEPARTMENT
MEMORANDUM
TO: WILLIAM W. BURNS, CITY MANAGER
FROM: RICHARD D..PRIBYL, FINANCE DIRECTOR
SHARON PETTING, STAFF ACCOUNTANT
SUBJECT: HRA INSURANCE
DATE: March 8, 1991
Per the HRA's request, the attached resume of insurance should
explain the different insurance coverage the City and the HRA
carry. Below I will explain how the premiums which relate to the
HRA are allocated.
The General Liability premium is based upon the dollar value of
the City's operations. The City's premium is allocated between
all the applicable divisions, including the HRA based upon the
previous years expenditures.
The Municipal Errors & Omissions (Public Officials Personal)
Liability premium is allocated based upon the five City Council
members, the Department Managers, some Division Managers and the
HRA based upon two members.
Inverse Condemnation is totally allocated to the HRA due to their
greater exposure of this type of claim. The 1991 premium is
$3,282.
The HRA is also allocated a portion of T.C. Field's compensation
for services fee. The amount allocated to the City Departments
and the HRA is based upon the portion of the premium charged for
property coverage (the HRA is not allocated a portion of this) and
the General Liability premium. T.C. Fields charges us based upon
a fee basis versus a commission basis. Their fee for 1991 is
$19,721 which is the same fee they have charged since 1985.
The premiums for 1991 are on average 3% greater than 1990. The
amount which will be allocated to the HRA will depend upon their
portion of the total expenditures for 1990. These numbers will
not be known until the 1990 financial statement is complete.
Hopefully, this will answer any questions they have.
RDP/ s f
Attachment
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11
CITY OF FRIDLEY
M E M O R A N D U M
TO: HRA COMMISSION MEMBERS
FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR
PAUL S. HANSEN, ACCOUNTANT
SUBJECT: DUTIES OF PROFESSIONAL CONSULTANTS
DATE: March S. 1991
Per the HRA commission's request, at the February 14th meeting,
this memo briefly describes the services provided by the
professional consultants used by the Fridley HRA.
Jim Casserly
Casserly Law Office, P.A.
Jim Hoeft
Virgil Herrick
Herrick & Newman
First Trust
Jim Omeara
Briggs & Morgan
Project Consultant - Analyzes the
financing options available for
specific redevelopment projects.
HRA Attorney
HRA Attorney
Paying agents for bond issues.
They are not consultants.
Bond Counsel. Develops school
districts referendum return
agreements. Prepares legal
work on bond issues and related tax
increment district issues.
Bob Thistle Financial Consultant - Analyzes
Springstead, Inc. bond issue alternatives for HRA,
structures them, and takes them to
market.
Ray Haik His services are used in special
Popham, Haik, & etc. litigation cases (i.e. Lake Pointe) .
If you have any questions, feel free to call.
12
I _
i
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
March 7, 1991
Mr. Walter Rasmussen
7806 Alden Way N.E.
Fridley, MN 55432
Dear Walter:
It is with sadness that we receive your letter of resignation. As
we accept it, we would like to thank you for your 8 1/2 years of
service to the Fridley Housing and Redevelopment Authority, and
wish you a speedy recovery from your illness.
Our thoughts will be with you in the days and months ahead.
Sincerely,
Lawrence R. Commers
Chairman, Fridley HRA
/rsc
13
a-0-0
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 7, 1991
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Winfield Development
At the February 14, 1991 HRA meeting, Chairperson Commers inquired
as to whether or not the City owes any money to Winfield
Development. I have researched the file and conferred with Jim
Casserly, and we have found two memos which required Winfield
Development to submit $20,000 as "a fee" to defray attorney and
staff expenses for the 57th Place redevelopment project. Winfield
paid the HRA $2,500 in 1989. The remaining sum of $17,500 was to
be paid upon execution of a development contract. Because the
development contract was not executed, Winfield did not forward the
remaining $17,500.
BD/ do
M -91 -156
1
a° 0
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
TO: Housing and Redevelopment Authority Members
FROM: William W. Burns, Executive Director of HRA,f,
DATE: March 7, 1991
SUBJECT: Rapid Oil Site
Since the last HRA meeting, I met with Jack Lemley of Ashland Oil
to discuss the possible HRA acquisition of the Rapid Oil site on
University Avenue. Mr. Lemley indicated that Ashland Oil would be
a reluctant seller of the site. He did say, however, that they
would consider any offer we made. He also indicated that he was
willing to hold off on the company's request for rezoning and a
special use permit until we had time to conduct an appraisal and
make an offer.
In order to begin the process, I have asked Barbara Dacy to employ
Denny Taylor, an MAI appraiser, to develop an appraisal price for
the Rapid Oil site. It should be available within three to four
weeks. Additionally, I have asked Chuck McKusick, Fire Chief, and
John G. Flora, Public Works Director, to evaluate the Delta
environmental report that was prepared for Ashland Oil and the
MPCA. Although this is somewhat a rehash of old material, I would
like to see for myself whether or not we can come up with a better
idea of what the cleanup costs are for the Rapid Oil site.
I have attached a memorandum
Mr. Lemley, and a memorand um
for your review. Although
meeting on March 14, 1991, I
direction is consistent with
WWB:rsc
Attachment
to the file regarding my meeting with
to John G. Flora and Chuck McKusick
I will probably be absent from the
would like to know whether or not my
your sense of direction on this issue.
14
MEMORANDUM
Municipal Center
® 6431 University Avenue N.E. Office of the City Manager
ri
Fridley, MN 55432 William W. Burns
CITYOF (612) 571 -3450
FMDLEY
TO: File
FROM: William W. Burns,
DATE: February 28, 1991
City Manaq
er
SUBJECT: Meeting Jack Lemley of Ashland Oil - February 27, 1991
At approximately 4:10 p.m., I met with Jack Lemley of Ashland Oil to
discuss the possible HRA acquisition of the Rapid Oil site on University
Avenue. We discussed the following during our meeting:
1. Mr. Lemley indicated that they had done little or nothing to
accomplish the cleanup of the site. They are waiting for the
City to tell them whether or not the City will rezone the
property and allow them to reconstruct their Rapid Oil business.
2. I did not get any other information regarding the expected costs
of the cleanup of the Rapid Oil site. Mr. Lemley said that in
a "worse case scenario". they would spend $300,000 to $500,000 to
correct the problems. He also said that on occasion, it has
taken five to ten years.
3. Mr. Lemley indicated that they would be willing to enter into a
negotiated sale of the site if the price was right. He pointed
out, however, that their primary objective is to use the site for
Rapid Oil. They are a reluctant seller.
4. Mr. Lemley and I agreed that I would prepare an offer to Ashland
Oil that was based primarily upon an appraisal. He agreed that
the application for rezoning of the special use permit could wait
until it is known whether or not Ashland Oil is willing to
consider the offer we develop.
5. I asked Mr. Lemley how much he thought they were going to invest
into site improvements. He said that in the past, they talked
about a figure of $200,000. He said'he could check to determine
how such they are currently expecting to put into the site.
In general, I think we had a very cordial meeting. Mr. Lemley did say
that they are not going to sell the site for $200,000, and that any
offer we make should be substantially higher.
WWB:rsc
cc: Barbara Dacy, Community Development Director
14 -A
Memo to John G. Flora
and Chuck McKusick
March 4, 1991
Page Two
5. Are there other typical gas station clean -up projects?
If so, what are the costs for a typical gas station to
clean up from leakage of their fuel tanks.
My overall objective is to get a better assessment of the kind of
financial vulnerability we would buy into if we were to obtain
title to the property. Also if we condemn the property and proceed
to buy it, we would want to make sure that the cost of clean -up is
reflected in the condemnation price. Therefore, we would want to
go into a condemnation proceeding with some kind of idea of the
clean -up costs.
Thank you for looking at this with me.
you have any ideas. Thank you.
WWB:rsc
Please let me know whether
14 -C
RICE PLAZA 1991 RENT
NORGE VILLAGE
METZ BAKING
CHILDREN CHARM
HONG KONG KITCHEN
MY SISTER'S CLOSET
T'S HAIR PLUS
CINNAMON SKIN TAN
RAPIT PRINTING
TOTAL
YEAR TO DATE
JANUARY FEBRUARY MARCH TOTAL
1,100.00
1,100.00
1,239.56
3,439.56
702.98
755.63
1,458.61
445.02
445.00
890.02
752.97
805.63
1,558.60
793.74
793.74
800.00
800.00
0.00
897.14
889.00
1,786.14
3,453.09
5,589.02
1,684.56
10,726.67
9,042.11
10, 726.67
10, 726.67
07- Mar -91
15
4
a° 0
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 7, 1991
TD: Housing and Redevelopment Authority
p9m: William Burns, Mocative Director of BRA
Barbara Dacy, Comnmmity Development Director
SUBJECT: Various Meetings
Here is a summary of meetings that we have had in the last month regarding BRA
redevelopment sites or issues:
1. January 29, 1991 - We met with Roger Derrick of Derrick Companies, a real
estate developer, and Don Patton, a realtor from Realty Center, on behalf
of the Cottage Homesteads of America, Inc. The president of Cottage
Homesteads is Michael Saxton. His company is the original founder of the
"Cottage" concept. This company is not related to John Arkell's proposal;
however, the concept is generally the same. The concept is to provide one
story clusters of 3 -4 units for the younger senior who is still mobile and
active. They inquired as to potential development sites within the
coma unity. We advised them that the BRA is still in the planning process
for the University Avenue Gateway area and the area in the northeast corner
of Rice Creek Road and Central Avenue. We spoke to them regarding the
City's recent history regarding the Arkell application and advised them
it would be important to differentiate between this company and the Arkell
proposal. We provided them with basic information regarding these sites
but we have not heard from them since our meeting in January.
2. February 6, 1991 - We met with Arne Gregory, Vice President of SCA
Development, Ltd., a subsidiary of CanAmerican Corporation, and Laura
Pioske of Miller & Schroeder Financial, Inc., regarding the Village Green
housing complex. Gregory's company is one of three partners of the limited
partner P awning the Ply• CanAmerican also is the management
company for the property. Apparently, one of the partners wants to sell
his portion of the partneertI;p. Currently, the three partners are
negotiating the sale. Gregory's incp» ry to the BRA was whether or not we
were interested in becoming one of the partners or participating in a
Proposal that was put forth by Bob Boi.sclair in the summer of 1990. We
asked that they keep us informed of the progress of their negotiations;
and when more information has become available, we will approach the HRA.
3. We have also been contacted by the Everest Company and Opus Corporation
regarding the status of the Lake Pointe site.
WB /BD:ls
M -91 -159
16
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17
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 7, 1991
TO: William Burns, City Manager
FROM: Barbara Dacy, Community Development Director
SUBJECT: LRT Preliminary Comments
The Anoka County Regional Rail Authority has asked the City to
provide them with informal comments regarding the proposed LRT
system in Fridley. Of importance to the HRA is that the proposed
park- and -ride sites do not directly affect identified redevelopment
project areas.
The park- and -ride sites are proposed at -:;e northeast corner of
53rd Avenue and the southeast corner of 57th Avenue along
University Avenue, as well as in the northeast corner of
Mississippi Street. The Mississippi Street LRT station issue was
resolved by Anoka County committing that it will be a walk- and -ride
and a kiss - and -ride so as to not affect the Fridley Town Square
Redevelopment project. Anoka County promised it will not acquire
single family homes in the area for a park- and -ride site. However,
at 53rd and 57th Avenues, Anoka County is proposing to acquire the
blocks bounded on the east by 4th Street, south of 57th, and north
of 53rd, and east of University Avenues.
If any of the commissioners have more s:._ :fic questions regarding
the alignment, I would be happy to try and answer those questions
at or after the meeting. Reduced copies of the proposed plans are
not yet available.
BD /dn
M -91 -158
Community Development Department
PiANN3NG-DRqS10N
City of Fridley
DATE: February 28, 1991
TO: William Burns, City Manager
FROM: Barbara Dacy, Community Development Director
Department Managers
SUBJECT: Preliminary LRT Comments for Environmental
Impact Statement and Preliminary Design Plan
On February 15, 1991, the Anoka County Regional Railroad Authority
transmitted to our office the preliminary design plans for the LRT
system in Fridley, as well as the schedule for review of the EIS
and the preliminary design plans. The ACRRA is requesting that we
submit "informal comments" in order to identify critical issues or
concerns that we may have regarding the proposed alignment. The
ACRRA noted that the "official" review and comment opportunity will
begin with the submission of the Environmental Impact Statement to
the cities on April 1, 1991.
Process
In order to respond to Anoka County's request for informal comments
as well as to initiate a process for an adequate review and comment
period by residents and businesses, we have developed a review
process to include staff members and the general public. The
attached comments have been developed by our Department Managers
reviewing the preliminary design plans. We have identified
recommended goals for each station area as well as pertinent
comments for physical planning issues along the alignment. After
the City Council reviews these initial comments on March 4, 1991,
it is intended that the Planning Commission will review these
comments on March 13, 1991. Due to budget cutbacks, ACRRA staff
is available for one neighborhood meeting instead of the originally
planned two. We have scheduled one meeting on March 19, 1991 to
meet with property owners immediately affected by the park- and -ride
sites at 53rd and 57th Avenues. These two station areas will
encounter the most amount of change. We also recommend that
another neighborhood meeting be conducted in April for all property
owners along the alignment.
As a result of the comments developed by staff, City Council,
commissions, and the neighborhood meetings, the City should have
17 -A
n
LRT EIS
February 28, 1991
Page 2
a good basis to evaluate the draft Environmental Impact Statement
when it is submitted in April of 1991. We may find it necessary
to conduct follow -up meetings with the property owners later in
the spring or summer.
Plan Comments
Attached are goals and comments for each of the station areas that
are located along University Avenue. In analyzing each station
area, we have used a radius of 1/4 to 1/2 mile around the proposed
station site. We have also developed a list of questions that we
would like Anoka County to be prepared to address at neighborhood
or other public meetings (some of these questions may be addressed
in the EIS).
Also, in reviewing the station area plans, we used the City Council
comments from their meeting on November 26, 1990 as a guide. The
plan sets we received are too large for reproduction. We will have
them available at Monday's meeting.
Recommendation
The City Council should review the attached goals and comments and
recommend any changes.
BD /dn
M -91 -137
17 -B
.
53RD AVENUE STATION AREA
Goals:
1. No change or intensification of existing development is
recommended, but there is a need for housing rehabilitation
in the area. A number of multiple family structures are
located in the area which need rehabilitation.
2. Pedestrian and bikeway /walkway access must be promoted from
single and multiple family properties on both sides of
University Avenue to the park- and -ride site. This includes
off - street sidewalks /bikeway/ walkways along 53rd Avenue, 49th
Avenue, and 44th Avenue. We need to finalize with Anoka
County and MTC the proposed east /west feeder bus transit
routes. Either a shuttle system or the feeder system should
provide connections to the industrial area along Main Street
and the Lake Pointe site on the other side, and the Target and
Menard's area on Highway 65. This system would serve about
850 - 1,500 employees.
3. Evaluate development opportunity at Naegele site and the
vacant property adjacent to it.
4. ACRRA should address the need for two station areas at 53rd
and 57th Avenues. Are both needed during initial construction
of the system or can one be constructed prior to the other.
17 -C
17 -D
53RD AVENUE PARK -AND -RIDE SITE COMMENTS
1. Two commercial properties are proposed to be removed; no
residential homes along 4th Street are proposed to be removed.
2. The plan apparently is assuming removal of the partial alley
that exists and reconfiguration of garages that are currently
located along the alley.
3. Two accesses are proposed on 4th Street. If possible, the
northern most access should be removed and connected to the
east bound I -694 ramp. If ramp access is not possible, the
southerly most access to 4th Street should be maintained.
Another alternative is to acquire the seven residential
properties along 4th Street as is proposed on 57th Avenue.
4. Proposed screening should be consistent with zoning ordinance
requirements. A 6 foot fence with 1 tree per 50 feet along
common boundaries should be constructed to the rear of
residential properties. A 20 foot setback should be provided
along the public right -of -way of 4th Street, with a 3 foot
hedge or berm and 1 tree per 50 feet around perimeter of
parking lot exposed to public right -of -way. Lighting should
be a neighborhood size, less than 20 feet, high pressure
sodium, a shoe box, or Kimlite design. Interior landscaping
should also be provided. Parking spaces may be striped at 9
feet wide but with a double stripe.
5. Pedestrian and bikeway access to the neighborhood to the east
should be provided as well as coordination with the City of
Columbia Heights for a sidewalk along 53rd Avenue.
6. Requirements of the Six Cities Watershed District must be met.
7. Station buildings should be handicap accessible, provide bike
racks, adequate bathroom facilities, and a call box for 911.
17 -E
57RD AVENUE STATION AREA
Goals:
1. The area north of 57th Avenue to 61st Avenue and on to 4th
Street has been identified as a potential redevelopment site
for housing or a mixed use project of housing and a commercial
node at the 57th Avenue intersection. The redevelopment would
be compatible with LRT as it would provide easy mass transit
access for those who desire it.
2. Feeder bus system needs to be further defined and should
include Holiday Plus, the industries along Main Street and the
Lake Pointe site, and the service /retail uses along 57th
Avenue on the west side of University Avenue.
3. Pedestrian and bikeway access across University Avenue should
be provided.
57TH AVENUE PARK -AND -RIDE SITE COMMENTS
1. Six residential structures will be removed (need to confirm
# of units) plus two commercial properties.
2. Same site plan comments as was identified on 53rd Avenue,
except that a screening fence will not be needed. A shorter
decorative fence may be appropriate along 4th Street.
3. A driveway access to the frontage road in the extreme
southeast corner of the site should be considered, if an
access to I -694 ramp cannot be approved.
MISSISSIPPI STREET STATION AREA
Goals:
1. Promote pedestrian connections across University Avenue.
Coordinate bikeway /walkway access into the northeast corner
if it is redeveloped.
2. Address the fire and police access issues as defined below.
3. Design elements of station need to be consistent with
University Avenue corridor design plans.
MISSISSIPPI STREET WALK -AND -RIDE SITE COMMENTS
1. Anoka County should provide the bikeway /walkway in addition
to the sidewalk located at the northeast corner.
2. The frontage road must be retained in front of the Fire and
Police stations. The Police Department uses the emergency
access to University Avenue twice a day (730 times a year).
The Fire Department uses that access also on a daily basis.
Plans indicate a discrepancy.
A. What is distance between front of station and relocated
frontage road?
B. What will frequency of trains be at this intersection?
C. What will the elevation of the tracks be? Will emergency
vehicles be able to drive over them easily?
D. Can the City pre -empt the LRT system as is done now in
opticom system?
E. What type of safety /warning sign apparatus can be
installed at emergency vehicle crossing?
3. Do long -term plans include only 20 drop -off spaces along
Mississippi Street in the northeast quadrant?
4. The design plans did not appear to show the improvements to
Mississippi Street which are proposed for 1991. Location of
the bus drop -off spaces should be located an adequate distance
from the intersection to not interfere with pedestrians and
bicyclists. Further, because a new shopping center will be
located in the northeast corner, the City will be monitoring
traffic operations on Mississippi Street. ACRRA should also
monitor traffic use to insure proper placement of bus drop -
off sites.
17 -F
J
17 -G
OSBORNE ROAD STATION AREA
Goals:
1. Provide pedestrian and bikeway connections across University
Avenue and to adjoining neighborhoods.
2. Bus feeder system needs to be better defined. System should
serve Unity Hospital and areas around T.H. 65.
3. Park - and -ride improvements should match University Avenue
corridor improvements. The City of Spring Lake Park needs to
be notified of our recommendations.
4. Some type of crossing should be provided across Osborne Road
for pedestrians to access hospital.
OSBORNE ROAD PARK -AND -RIDE SITE COMMENTS
1. The storm sewer system should not be located underneath the
LRT tracks. It must be closer to the frontage road, and its
capacity must be double- checked. Local storm sewer
connections must be made to the. proposed storm sewer, and
shown on engineering plans.
2. In order to be consistent with University Avenue design goals,
design and landscape elements should be submitted to the City
of Fridley. We should also retain on file site plans of the
Osborne station.
NORTHTOWN
The First Western development will be conducting a traffic study.
Part of its analysis will show how the development will affect /not
affect the LRT station plans in this area.
17 -H
6
F
QUESTIONS WE WANT ANOKA COUNTY TO ANSWER AT NEIGHBORHOOD MEETINGS
1. Why are stations proposed on both sides of I- 694? What is
rationale behind several stations versus one large station at
Northtown or I -694?
2. Differentiate between initial and long -term phasing for park -
and -ride sites.
3. What part of the projected ridership includes Fridley riders?
4. What agency is studying whether an all bus alternative is more
or less cost effective than the LRT alternative? What are the
results?
5. The ACRRA should assist communities with crime prevention
programs, and if possible, security personnel at park- and -ride
sites. Initially, information about other communities'
experiences with crime in conjunction with a LRT system should
be provided as soon as possible.
6. The ACRRA should address safety protection measures at
intersections. The City wants to promote pedestrian and bike
traffic and make it as easy as possible to cross University
Avenue and east /west streets.
7. Recreational opportunities at Columbia Arena may dictate
creation of another station at Columbia Arena.
8. ACRRA /MTC should describe the east /west feeder bus system that
would serve the LRT and Fridley.
9. What level of weather protection will be provided at stations?
1/ 9
18
r
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March-7, 1991
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Status of Kiffe's Automotive
Jack Kiffe from Kiffe's Automotive notified me that he wants to
sell his automotive business and vacate the building on Mississippi
Street. Kiffe is leasing the building from the HRA on a month -to-
month basis.
Kiffe has advertised his business for sale, and has received
initial inquiries. We advised him that the maximum amount of time
we would be able to lease the building to a new tenant is one year.
We would also charge the same amount of rent, which is $650.00.
We conferred with Jim Kordiak, our Property Manager for Rice Plaza,
regarding the lease amount per month. He advised us that it was
a reasonable rate, and given the condition of the building and the
change of access that will occur after the Mississippi Street
improvement project, the current lease rate is appropriate.
Kiffe has made his rental payments on time, and he has agreed to
provide us with a 30 day notice to vacate. If a new tenant is to
be located within the building, the lease will need to be presented
to the HRA for final action.
BD /dn
M -91 -157
6000 WEST MOORE LAKE DRIVE, FRIDLEY, MINNESOTA 55432 / 571 -6000
February 13, 1991
Mr. Larry Commers, Chairman
HRA Committee
Fridley Municipal Center
6431 University Ave. NE
Fridley, MN 55432
Dear Mr. Commers:
On behalf of the District 14
and the HRA Committee Members
Increment Finance issue as it
Your willingness to listen to
and to take considerable time
much appreciated.
DR. DENNIS E RENS
SUPERINTENDENT
FAX 612- 571 -7633
School Board, my thanks to you
for reconsidering the Tax
relates to school referendums.
the School Board's concerns
on the issue has been very
At your February 14 meeting, Mr. Prairie requested that the
School District indicate in writing what would be
appropriate timing for the HRA to notify the District of any
changes in planned funding amounts. For our planning
purposes it would be most helpful to have that information
one year in advance. In other words, for our 1992 -93 budget
(7/1/92 - 6/30/93), which will be the next budget year
impacted by HRA decisions, it would be helpful to have the
information by July of 1991.
Again, thank you and all HRA members for the time you have
devoted to this issue and for your responsiveness to the
School District's concerns.
S inceXely,
;�kDennis E. Rens, PhD
Superintendent
DER/hi
c: Bill Burns
HRACOMM.WPS
FEB 2 51991
44M .V ir- theast
State Bank
February 21, 1991 Your Independent
Community Bank
77 Bmadv.3, N E
A' , ^Eav . P-'% 554'3
F"' .i n FFr'
[a. F— ; -4 459'
Mayor William Nee
City of Fridley
6431 University Avenue N.E.
Fridley, MN 55432
Dear Mayor Nee:
I want to confirm my interest in the Fridley Housing and
Redevelopment Authority. My experience should be of some
benefit to the HRA. After working for Norwest Bank for 16
years in three banks in North Dakota, I moved to Minnesota
and was employed for four years by Drovers Bank in South St.
Paul before accepting a position with Walter Rasmussen at
Northeast State Bank in February of 1981. My experience
includes insurance; accounting; loans; and most recently,
Chief Operating Officer of Northeast State Bank.
S' ly yours,
J. R. McFarland
President
JRM : mmc
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING, THURSDAY, MARCH 14, 1991
7:30 P.M.
PUBLIC COPY
.. mimmmM=IMME
CITY OF FRIDLEY
AGENDA
HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, MARCH 14, 1991, 7:30 P.M.
Location: City Council Chambers
Fridley Municipal Center
6431 University Avenue N.E.
CALL TO ORDER:
ROLL CALL: WELCOME NEW COMMISSIONER, JIM McFARLAND
APPROVAL OF MINUTES: February 14, 1991
ACTION ITEMS:
WRITTEN CONTRACT WITH JIM CASSERLY 1 - 1B
WRITTEN CONTRACT WITH VIRGIL HERRICK 2 - 2B
APPROVAL OF CONTRACT FOR APPRAISAL OF LAKE POINTE . . . 3 - 3E
APPROVE CONVEYANCE OF EASEMENT TO CITY
OF FRIDLEY FOR MISSISSIPPI STREET IMPROVEMENTS 4 - 4B
APPROVE AND AWARD BIDS FOR
LAKE POINTE MAINTENANCE PROJECT 5 - 5C
ESTIMATES/CLAIMS 6 - 6C
UPDATE ON FRIDLEY TOWN SQUARE DEVELOPMENT AGREEMENT . . 7 - 7D
INFORMATION ITEMS:
LETTERS TO ALL FOUR SCHOOL DISTRICTS
REGARDING TIF TURNBACK 8 - 8C
MEMORANDUM REGARDING RESPONSE TO SUH'S PROPOSAL 9 - 9E
MEMORANDUM REGARDING HRA PAYMENT TO T.C. FIELDS 10 - 10C
MEMORANDUM FROM FINANCE DEPARTMENT REGARDING
OUR USE OF FINANCIAL CONSULTANTS 11
LETTER ACCEPTING WALTER RASMUSSEN'S RESIGNATION 12
MEMORANDUM REGARDING AMOUNTS THAT
MAY BE OWED TO WINFIELD 13
REPORT ON CONTACTS WITH ASHLAND OIL 14 - 14C
Housing and Redevelopment Authority Agenda
March 14, 1991, 7:30 p.m.
Page 2
UPDATE REGARDING RICE PLAZA 15
UPDATE ON VARIOUS MEETINGS IN LAST MONTH 16 - 16C
LRT PRELIMINARY COMMENTS 17 - 17I
STATUS OF KIFFE AUTOMOTIVE 18
OTHER BUSINESS
ADJOURNMENT
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 14, 1991
CALL TO ORDER:
Chairperson Commers called the February 14, 1991, Housing &
Redevelopment Authority meeting to order at 7:40 p.m.
ROLL CALL:
Members Present: Larry Commers, Duane Prairie, John Meyer
Members Absent: Virginia Schnabel, Walter Rasmussen
Others Present: William Burns, Executive Director of HRA
Barbara Dacy, Community Development Director
Jim Hoeft, HRA Attorney
Rick Pribyl, Finance Director
Paul Hansen, Accountant
Dr. Dennis E. Rens, Independent School Dst. #14
Jai Suh, 6440 University Avenue NE, Fridley,
MN 55432
George Borer, Attorney, 1200 Capital Centre,
St. Paul, MN
Bill Schatzlein, 4032 Grand Avenue South,
Minneapolis, MN
Doug Erickson, Fridley Focus
APPROVAL OF JANUARY 10, 1991, HOUSING & REDEVELOPMENT AUTHORITY
MINUTES:
MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the
January 10, 1991, Housing & Redevelopment Authority minutes as
written.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
ACTION ITEMS:
1. RECONSIDERATION OF TIF TURNBACK TO SCHOOLS
Mr. Commers stated the HRA had received, with their agenda,
a letter from Dr. Rens, Superintendent of Independent School
District #14 .
Mr. Burns stated the City had received a formal request from
Dr. Rens stating the loss of over $40, 000 would mean the loss
of 1. 5 teaching positions at a time of financial need for the
HOUSING & REDEVELOPMENT AUTHORITY MEETING. FEB. 14, 1991 PAGE 2
School District. The School District did not anticipate the
loss in the financial planning for this year. The turnback
projected for School District #14 remains the same as 1990.
There has been confusion about what is being turned back. All
of the turnback money is money collected as the result of
post-1979 school district referendum levels. The school
district's turnback is based on a 2 mill levy approved in 1983
and a 2 .5 mill levy approved in 1986. There are no additional
levies since beginning the turnback program in 1988.
Therefore, growth in turnback for the school district since
1988 has been due to property appreciation and new property
placed on the tax rolls, not additional levies.
Mr. Burns stated that at an earlier meeting the HRA expressed
concern that the size of the turnback would continue to grow.
At the last meeting, Mr. Burns returned figures to the HRA
developed by the City Assessor showing the increases and
decreases for various tax increment project areas. Using this
information, between 1991 and 1992 , they are going to realize
a net increase of $266, 513 of value, or it looks like a 20%
revenue growth. If they apply the 20% figure to the 1991
potential turnback, it would rise to $322 ,800. After that,
they think the TIF return will stabilize. The main reason for
an anticipated jump in 1991-92 is the value for the Moore Lake
Racquet Club will come on line. Copies of the City Assessor's
analysis of major projects were distributed.
Mr. Commers stated, when looking at the budget preparation
materials, he did not understand why there was money allocated
to School District #14 from the Skywood/Johnson project.
Mr. Hanson stated the Skywood/Johnson project is a
noncontiguous tax increment finance district.
Mr. Pribyl stated this was done when the district was approved
as a noncontiguous tax increment district. There were two
separate areas that were approved as part of one process.
Mr. Prairie asked if Johnson Printing is also in School
District #14.
Mr. Johnson stated it is not. The Johnson Printing parcel is
in School District #14, and the Skywood Mall parcel is in
School District #13 .
Mr. Prairie asked if there is any way to separate these so it
would not be so confusing.
Mr. Pribyl stated, no, that is the way it was approved.
Mr. Commers asked if the City collected the monies.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 3
Mr. Pribyl stated the County collects the funds and separates
the funds by a code. Each segment of a tax increment is
assigned a code. The City has no internal allocation.
Mr. Prairie asked if the Johnson parcel is going to be turned
back.
Mr. Pribyl stated it would be returned to the tax rolls for
taxes payable in 1994.
Mr. Prairie asked if, at that point, Tax Increment District
#4 would consist solely of Skywood and if there would be no
turnback to School District #14.
Mr. Pribyl stated that all increment would then be returned
to the tax rolls as that district terminates.
Mr. Commers asked if the dollar amount is $19, 955 a year.
Mr. Pribyl stated Johnson's total tax increment payable in
1991 is $101, 000.
Mr. Commers stated that, of that amount, $19,955 would go to
the school district as a refund.
Mr. Hansen stated this is correct.
Mr. Commers asked if, after 1993, this would no longer be part
of the refund.
Mr. Pribyl stated this is correct. The property will be back
on the tax rolls.
Mr. Prairie stated the school district would then end up with
more.
Mr. Pribyl stated this would likely happen.
Mr. Commers asked if this matter had been returned to the HRA
by the City Council.
Mr. Burns stated that no action has yet been taken by the City
Council, so this item was returned informally to the HRA.
Mr. Prairie stated the HRA discussed this issue at their last
meeting. What has generated the increase in amount from
$66, 000 to $268, 000? He spoke with Mr. Jim Ferguson briefly
and thought Mr. Ferguson was under the impression the funds
are generated by levies. At that time, the HRA based some of
their thinking on that. He felt the HRA should not take any
money the school district rightfully has coming.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 4
Mr. Commers stated he thought, too, that the difference was
due to the appreciation and not an additional levy. He
thought this was clear.
Dr. Rens, Superintendent of Schools, stated he was speaking
on behalf of the Board of Education, that has indicated two
concerns. The first is serious financial difficulty. In
1989-90 and 1990-91, the budget has been reduced each year.
Their preliminary budget still has expenses over budget. They
see this escalating because they see difficult times for the
State. 1.5 teaching positions is a lot for our school
district. Secondly, their dollars are from the tax levy
passed by the school levy. They understand those have
increased because the values in the district have increased.
They are not increasing from last year's budget to this year's
budget. There has been no change in the dollar amount that
they put into their projections when they made decisions. He
is concerned about the timing of the decision. The Board made
financial decisions in the fall based on a given amount. If
the HRA has a concern about the total amount being returned
in the future, the School District's preference would be to
return the full amount that affects the 1990-91 budget so they
can go ahead. The school district would have time to plan if
it would impact 1992-93 by July so decisions made have that
considered. They were not aware of this until September and
December. The Board is asking to reconsider for those
reasons.
Mr. Prairie stated the HRA originally moved the vote back
eight months thinking it would help districts with their
budgets. Now what they have to do is go back another six
months.
Mr. Commers stated the school district is asking for a 12-
month lead time for budgets they are adopting for the next
fiscal year.
Dr. Rens stated, as an example, the Board of Education had to
make a decision by August on a referendum issue. When they
made that decision, they had $164, 000 in projections over a
four-year period of time. For that reason, they decided
against the referendum. That is just one of many decisions
when he put this together.
Mr. Prairie asked if there is a way that this could be written
up so this would be done early enough.
Dr. Rens stated that under normal conditions that would be
okay, but these are not normal financial times.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 5
Mr. Prairie stated the earlier the HRA has to look ahead the
harder it is. If they know about the dates from the school
districts, it would help. Have they heard from any other of
the school districts?
Mr. Burns stated the City has not heard from the other
districts, nor have the districts heard from the City.
Mr. Pribyl stated the districts are aware of the issue, but
they may not be aware of the pending process. The districts
are aware the HRA will be returning funds at some point in
time.
Dr. Rens stated the other districts are probably not aware of
the change in amounts or are not affected.
Mr. Meyer stated he is sympathetic to the position of the
Board. The referendum decision was made late last summer not
to go for it. The Board is depending on full amount from the
HRA. At this time, he would favor changing our position with
better understanding by both parties of what they can expect
in the future.
Mr. Prairie asked if the City could notify the school
districts when this again comes up.
Mr. Burns stated the City can do this. It is something that
has been overlooked in the past. Other than School District
#14, the City has not contacted the districts.
Mr. Meyer stated the HRA concentrated on its own financial
position and thought that the districts would not mind the
decision made because it was not punitive. The HRA did not
realize that the district was looking for more but they did
discuss it.
Dr. Rens stated the Board recognizes there is nothing
punitive, and thanks the City for their support.
Mr. Commers stated there is a difference in viewpoint as to
those funds. He thought that there is a legitimate issue with
respect to the planning and decision not to go forward with
the school referendum, to that extent that weighs more heavily
in favor of paying the school a refund but he thought that the
HRA will have to address this so this will not happen again
in the future.
MOTION by Mr. Prairie, seconded by Mr. Meyer, to recommend to
the City Council approval of a full refund of TIF turnbacks
to the school districts for taxes payable in 1991, or
approximately $268, 000.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 6
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY.
2 . CONSIDERATION OF SUH REQUEST TO ACQUIRE PROPERTY:
Mr. Commers referred to the memo dated February 7 , 1991, from
Mr. Burns regarding a meeting the City Manager had with Mr.
and Mrs. Suh.
Mr. Burns stated Mr. George Borer, attorney for Dr. and Mrs.
Suh, would provide information for the HRA.
Mr. Borer stated the property consists of a car wash, Burger
King and shopping center. The first proposal would be for the
HRA to purchase this property, similar to the purchases the
HRA has made with similar properties. They felt this was the
fair thing to do. Mr. Suh's property has been in this
district since 1978. His ability to rent out the center is
becoming more and more difficult for various reasons. The
real estate market is one reason. Also, long term tenants do
not want to rent because they have heard the property is in
a redevelopment district. It is also his understanding that
once there is acquisition, this property will be the last
piece to be acquired. They are asking the HRA to consider
purchasing their property as well. The placement in the
district is becoming harmful to the Suhs. There is also
refinancing coming up. They must decide what to do with the
property and the decision must be made in a short time.
Mr. Borer stated he and his client are present to ask if the
HRA would consider moving forward with this property. The
preference is that the HRA purchase the property; however,
through discussions with staff, this is unlikely. With this
being the last piece in the quadrant and a key piece, they
would like to enter into negotiations with the HRA and
consider terms. As an alternative, if this is not the
appropriate time to purchase, could the property be released
from the district in order to attract long term tenants? It
is difficult to lease because prospective tenants fear
condemnation. If the area is not going to be redeveloped in
the near future, would the HRA provide a letter stating this
so tenants can be attracted? He would like to see something
happen so his client can move forward. They would like to
see the HRA either purchase the property or allow the Suhs to
do something to their property to make it attractive to long-
term tenants.
Mr. Meyer stated a possible scenario would be that even if the
propertycould laterd frm decide the
t take the property vements becausem
ade,
HRA
they
the HRA
•
•
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 7
purchase the entire area. Why, under that scenario, would
Mr. Borer's client be any better off? The property would
still be in jeopardy. Would his client gain anything?
Mr. Borer stated he is not certain if this would be better,
but felt it would. The center is not going to attract top
notch tenants with the threat of condemnation. It is
certainly something that has been mentioned by tenants and
leasing agents. He did not think staff is telling anyone this
but the fact is that other property around them has been
taken. Tenants do not want a five-year lease and then have
to move. This hampers the ability to lease space. Burger
King is likely to be lost from the site as well, which will
be devastating to the site. He is willing to look at any
alternative to make the site more marketable.
Mr. Meyer stated he is trying to think of a way to take away
the stigma, short of abandoning the district for the southwest
quadrant.
Mr. Borer stated tenants question moving in if the property
is going to be condemned by the City in the near future. The
agreement would be cleaner from their standpoint if they knew
how long it would be there.
Mr. Meyer felt Dr. and Mrs. Suh would be better served to sell
to the HRA or lease back, but did not consider it a viable
option to be released from the district.
Mr. Borer stated selling is the preference. Basically, he and
his client feel that if they must keep the property for ten
years, how can they keep it in a state that is attractive.
Their desire is to sell to the HRA.
Mr. Commers asked when the owner would be refinancing.
Dr. Suh stated at the end of this month, but he has a two to
three month grace period to renegotiate.
Mr. Borer did not think refinancing would be a problem, but
they do need to make a decision about the property.
Mr. Commers stated they had talked about agreements not to
condemn or take the property for a period of time.
Mr. Borer stated such an agreement would be shown to
prospective tenants.
Mr. Commers asked if the Burger King would default now since
it is in bankruptcy.
HOUSING h REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 8
Dr. Suh thought so, but has not received a formal letter.
Mr. Commers stated, with the status, he would think it would
also impact Mr. Suh's ability to do many things.
Dr. Suh stated a developer may be talking to Burger King
directly, but he is not sure.
Mr. Commers stated this may even become a different franchise.
Dr. Suh agreed that this could happen.
Mr. Commers stated part of the issue is that, in terms of
priority, this is not a priority for the HRA. The HRA has
some difficult financial issues which need funding. There is
some othat.sue asHeo their asked theability
value of the property and the
HRA elected
to dand what the
HRA may be able to affect.
Mr. Meyer suggested that staff sit down with the owner and
explore scenarios, and report back to the HRA at the next
meeting.
Dr. Suh stated that, since the HRA is talking about financial
difficulties, he would propose that if the HRA would decide
to purchase the property, it could be done over a period of
years. He did not need a lump sum right now.
Mr. Borer stated they have talked about a sale lease back so
the City would not end up as landlord over a period of years.
Terms are open.
Mr. Burns recommended that, since the City had just received
Mr. Borer's letter that day, staff take an opportunity to
review the letter and proposals. At this point, he did not
see a need for staff to be directed to have further talks with
the Suhs unless the HRA is contemplating buying the property.
He would like to see if there are legal implications. If the
Suhs have a proposal to make, there is no problem with
accepting their proposal, but staff has not received a
proposal. At this time, staff would evaluate any proposal
received with an eye to the legal implications.
Mr. Commers stated there is a timeframe here. The HRA needs
to respond as promptly because of the refinancing questions.
Staff was requested to review and check with legal counsel
for implications, at least to the issues raised,
and meet
o ti with
the Suhs again to see if they have any suggestions
s.
Dr. Suh asked if Mr. Burns needed numbers from him in a
proposal.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 9
Mr. Burns stated that, if they have a buyout plan in mind,
the Suhs were welcome to submit it for consideration.
Mr. Commers stated it may be a good idea so they can get a
feel for what the Suhs are looking at. The HRA has done their
budgeting for 1991 so that could be a problem for a short-term
decision. In the meantime, the HRA will review the issue.
If staff and the Suhs could talk in the next week or two, the
HRA could provide an answer in the next month or so.
Mr. Borer stated he thought the request to be removed by the
district had a 30-day limit to be referred to the Planning
Commission. They would waive if that is the case.
Mr. Burns stated he is not aware of such a restriction, but
this would be referred to legal counsel.
3 . CONSIDERATION OF CONTRACT FOR HOUSING REDEVELOPMENT CONSULTANT
SERVICES:
Ms. Dacy stated the purpose of the contract is to perform a
preliminary market research study to determine the feasibility
of a housing and redevelopment project in two areas. The
first is the University Avenue Gateway area in the northeast
corner of 57th Avenue and University extending up to 60th
Avenue, which contains some older commercial properties which
are now vacant; and second, the northeast corner of Rice Creek
Road and Central Avenue, part of which is in a tax increment
district. The City owns property adjacent to that area. The
property in that area has been subject to several
controversial requests, and both proposals were denied by the
City Council.
Ms. Dacy stated that in evaluating those two areas during the
last year, staff felt that there were eligible sites for a
housing project, and staff reviewed with the HRA some of our
land use goals for both of those areas. Staff believes it is
important to look at the market, determine the type of
housing, the type of density, and what type of amenity package
would be in the best interest of the City. Mr. Schatzlein
would be expected to prepare a written report and present the
findings to the HRA. The contract is an hourly contract up
to maximum of $3, 500 and staff would like the report completed
by April 1, 1991. Mr. Schatzlein was present to answer
questions. Information regarding Mr. Schatzlein's company and
references was included in the agenda. Staff recommends
approval of the contract as presented.
Mr. Commers asked what happened to the proposal for the
Mochinski property.
HOUSING i REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 10
Ms. Dacy stated the developer never formally applied for a
land use application. Staff was told they were evaluating the
site as a potential redevelopment area, but staff has not
heard from them.
Mr. Burns thought Mr. Brickner was waiting for the City.
Ms. Dacy stated the City is trying to determine what would be
the most appropriate land use. Property owners strongly
object to townhouse development and commercial development.
Unfortunately, single family does not work in redevelopment.
Mr. Commers asked if detached townhouses were constructed,
what does the preliminary economic impact show? Is there
enough there to do that kind of project?
Ms. Dacy stated that they have to get the density of at least
12-15 units per acre to get to a break even point. That may
be unacceptable in a layout context. If the townhomes are
rental, the tax increment is larger. However, she thought
property owners will want an ownership situation rather than
rental units. Another factor is to determine whether they
want to acquire the commercial building in the immediate
corner of the intersection. That skews the scale toward the
negative side.
Mr. Commers asked if it would be beneficial to have a study.
He thought this is a zoning issue. It looks like density is
needed to make it work, and wondered if the Planning
Commission or City Council would approve a project that would
meet the minimum criteria.
Mr. Burns stated he thought it is too early to say. He
thought there were some serious challenges here. There are
three issues:
1. The market issue - What can be put there that will
sell?
2. The cost issue - What can be put there that will
produce enough increment to justify itself?
3 . The political issue - What can be put there that
will satisfy the neighbors? The Mochinski property
is zoned C-2, Commercial, and it could be rezoned
residential. Soil correction is needed particularly
if a road is to be built. Another element is the
Gray Star Building which, under ideal circumstances,
should be purchased if that corner is to be
developed.
HOUSING fi REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 11
Mr. Commers asked what is being considered in the area of 57th
and University.
Mr. Burns stated staff did not know for sure. The City is
looking at a mixed use project. There is approximately eight
acres from 57th northward almost to 61st Avenue. The depth
goes back to 4th Avenue. There are some residential
properties that would also be involved, if it is decided that
this would be a redevelopment area.
Ms. Dacy stated this includes the former Holiday Station,
McDonald's, Benjamin's, and Zantigo buildings, plus Frank's
Used Cars across the street.
Mr. Commers asked if a report done by April 1 would give some
sense of what the economy will be.
Mr. Burns stated there has been some preliminary analysis.
He felt that the economies have already covered as best we
can at this time.
MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve the
contract as specified with Schatzlein Associates.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY.
Mr. Schatzlein stated he is looking forward to the project
and bringing an independent proposal to the HRA. His goal is
to provide information to help make decisions in this area.
He will be looking at it from the market approach.
4 . CONSIDERATION OF ANOKA HRA REQUEST FOR PERMISSION TO OPERATE
HOUSING PROGRAM:
Mr. Burns stated he had been contacted by Rita Ander, City of
Anoka HRA, requesting permission for them to a operate a
program for the mentally disabled in the City of Fridley.
Anoka's HRA has applied for a grant to subsidize rental
payments in apartments for up to 20 individuals. The grant
application would be more attractive if it was a multi-city
project, and they have talked to Fridley, as well as Columbia
Heights. Staff recommends the HRA let the Anoka HRA operate
a program in Fridley, but that the Anoka HRA operate the
program through the City's Section 8 Housing Coordinator.
Mr. Commers stated it seemed to be a program that deserved a
chance but he would be more comfortable if Fridley could
control the program in the City.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 12
Mr. Burns stated the role of the Section 8 Housing Coordinator
would be to check out the apartment units and administer
contracts with the owners.
Mr. Comers stated there would not be a large number of
persons involved.
Mr. Burns stated the City would receive $15.00 per month per
person.
MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve the
request by the City of Anoka HRA to operate a program for the
mentally disabled in the City of Fridley, with the amendment
that it be administrated by the City's Section 8 Housing
Coordinator.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY.
5. CONSIDERATION OF 1991 BUDGET:
Mr. Burns stated he had adjusted the budget numbers based on
the HRA's decision of turning back the full amount to the
school district. He also amended the capital outlay to
reflect taking out the grates for the Fridley Plaza area.
MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the
budget as amended.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY.
6. ESTIMATES/CLAIMS:
Mr. Pribyl presented Check Register #2094 through #2099 for
consideration.
Mr. Prairie asked if Check #2096 was the fee paid to analyze
insurance.
Mr. Pribyl stated this is the actual insurance coverage for
the Rice Creek Plaza. This is the only one where the City
actually goes out and solicits quotes.
Mr. Commers asked Mr. Pribyl to provide a memo next month to
explain how this works.
Mr. Pribyl stated he would let them know the mechanics and
process as they get into other insurance.
HOUSING & REDEVELOPMENT AUTHORITY MEETING. FEB. 14. 1991 PAGE 13
Mr. Pribyl asked the HRA to note on a separate listing, Checks
#2100 to #2105, in addition to the register they had received.
These checks are listed on an additional handout.
Mr. Commers stated it is hard to keep track of the agencies
and who is doing what.
Mr. Pribyl stated that in 1985, Casserly was a financial
advisor/underwriter. He was later released and went out on
his own, and is now consulting. Then the City was looking
more toward Springstead. Now that he is operating
independently, he does not have the same level of expertise
available to him. There was some transition. In a memo to
Mr. Burns, First Trust acts as a paying agent for the City's
bond issues, while the consultants are Casserly and
Springstead.
Mr. Commers requested a description of each and their
function.
Mr. Prairie requested this memo also include a description of
appraisers.
MOTION by Mr. Meyer, seconded by Mr. Prairie, to accept Check
Register #2094 through #2105.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY.
INFORMATION ITEMS:
7. UPDATE ON FIRST WESTERN DEVELOPMENT'S PROPOSAL:
Ms. Dacy stated she had nothing more to report. The City
Council will not decide on the variances until February 25.
She has not received information on the soil correction.
Mr. Meyer asked if the YMCA property is now sold.
Ms. Dacy stated they entered into a purchase agreement.
8. UPDATE ON FRIDLEY TOWN SOUARE PROJECT:
Ms. Dacy stated the City Council tabled this item, and the
City Council will discuss at their February 25th meeting.
Mr. Commers asked if there is a final resolution as to whether
there needs to be another home taken along Mississippi.
Mr. Burns stated this was discussed and rejected by the
developer. The traffic study showed this is not necessary.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 14
9. RICE PLAZA UPDATE:
Mr. Commers asked if they had approved the Cinnamon Tanning
not paying rent.
Ms. Dacy stated the original action was made in November 1990.
Mr. Burns, Mr. Kordiak, and she met and went through a number
of issues with a number of tenants. A motion was made to
release the balance of lease payments on T's Hair Plus, but
they would make lease payments on the tanning salon. Rent
payments will be made next month.
10. REPORT ON TIF PROPOSALS FOR 1991 LEGISLATIVE SESSION:
Mr. Burns stated that Mr. Casserly is not on the City's
payroll as a lobbyist, but is working being done for MCVA.
He does, however, have the City's best interests in mind. Mr.
Burns referred to his memo of February 4 regarding 1991 TIF
Legislation, in which he summarized the amendments. Of these,
there are three proposals that the City would stand to benefit
from: 1, 2, and 6. Realistically #1 and #6 have the greatest
chance of being considered as part of a package of technical
amendments that will be carried forward. Number 2 is regarded
as a substantive change rather than a technical change and
there may be some delay beyond the 1991 legislature. He
stated it is important, but thought that the greatest chance
of success will be with technical amendments rather than
substantive amendments during this legislative session.
Mr. Commers asked what the penalty was for hazardous housing
conditions.
Mr. Burns stated, to his understanding, in creating any new
TIF district, the City would begin to lose LGA. The LGA
penalties for the district are for beyond the fifth year.
What cities are trying to do is eliminate that penalty for
housing redevelopment districts. Item 6 refers to penalties
and interest on delinquent properties. The City is hoping to
have legislation passed so that the HRA would receive
delinquent taxes rather the County.
Mr. Commers asked if they could check with the surrounding
counties to see where they on this issue.
Mr. Pribyl stated legislation passed in 1989 made it a gray
enough area so interpretation is legal. Whether Hennepin
County uses, he did not know.
Y
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 15
11. LETTER REGARDING TAX DELINQUENCY AT LAKE POINTE SITE:
Ms. Dacy stated these are information items. Notices have
been sent.
12 . MEETING WITH LINVILLE PROPERTIES:
Ms. Dacy stated that the property has not been established as
a tax increment district. The information is offered for
informational purposes. She has not heard from Linville
Properties and will not pursue it until more information is
submitted.
Mr. Prairie asked if any other persons are proposing anything
for that property.
Ms. Dacy indicated they have a purchase agreement so it may
be off the market. Over the past 6-12 months, the City has
received a number of calls.
Mr. Burns stated that, if this issue arises, the
HRA will need
to decide if they want to spend excess funds to enhance out-
of-district projects.
13. OTHER ITEMS:
a. Resignation of Walter Rasmussen
Mr. Commers stated Mr. Rasmussen has resigned for medical
reasons, and he has asked staff to send a letter to
acknowledge his resignation. Mr. Rasmussen has served
faithfully for a long time.
Mr. Burns sated staff will prepare a plaque for future
recognition at a City Council meeting.
Mr. Meyer requested that all the HRA members sign the
letter.
Mr. Burns stated he would write a letter and send it out
for signatures.
b. Rapid Oil Site
Mr. Burns stated he has never received anything formally
severing Winfield from the project. His understanding
is that Mr. Robertson had received informal word that the
principal person involved from that organization was no
longer pushing the project. There were some financial
commitments made.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEB. 14, 1991 PAGE 16
Mr. Commers stated staff should check back in the minutes
to see if it was completed.
Mr. Burns stated he was not aware of commitments that
were made by the HRA or City.
Mr. Commers stated he thought a good faith deposit was
made.
Mr. Meyer stated the HRA should discuss this.
Mr. Commers requested staff to review the minutes during
the negotiations.
ADJOURNMENT:
MOTION by Mr. Meyer, seconded by Mr. Prairie, to adjourn the
meeting.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE FEBRUARY 14, 1991, HOUSING &
REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 9:20 P.M.
Respectfully submitted,
Lavonn Cooper
Recording Secretary
ACTION ITEMS
1
II Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
TO: Housing and Redevelopment Authority Members
FROM: William W. Burns, City Manager , .�"
DATE: March 7, 1991
SUBJECT: Agreement for Legal Services with
Casserly, Molzahn & Associates, Inc.
At the HRA budget session, you asked that we prepare a contract for
legal services with Jim Casserly. I have prepared the attached
agreement and plan to present it as a decision item at the HRA
meeting on March 14, 1991.
The agreement essentially defines Jim's services as they have been
defined in past contracts, and establishes the fee at $90.00. This
is the same fee identified in a contract submitted by Jim on
December 1, 1988.
We recommend your approval of this agreement.
WWB:rsc
Attachment
1-A
AGREEMENT FOR LEGAL SERVICES
BETWEEN THE FRIDLEY
ROUSING AND REDEVELOPMENT AUTHORITY (HRA)
AND CASSERLY, MOLZAHN & ASSOCIATES, INC.
1. Term of the Agreement: April 1, 1991, through December 31,
1992.
2. Duties and Responsibilities of Casserlv, Molzahn & Associates.
Inc. :
A. Analyze subsidies requested by developers or offered by
the City, including:
i. Tax increment analysis;
ii. Internal rate of return analysis; and,
iii. Pro forma cash flow and balance sheet analysis.
B. Assist with any tax increment work, including the
following:
i. Modify the redevelopment project area;
ii. Establish the tax increment district and the tax
increment finance plan, including impact analyses;
iii. Prepare resolutions adopting the above;
iv. Prepare notices of public hearings;
v. Attend public hearings to provide support and
background;
vi. Prepare letters and notices for the School and
County Boards; and,
vii. Prepare letters requesting certifications and filing
documents with the appropriate jurisdictions.
C. Assist in the negotiation and preparation of contracts
for private development, assessment agreements, special
assessment agreements, interest rate reduction programs,
revenue notes, and other contractual arrangements between
the Fridley HRA and the developer.
D. Assist with any debt issuance, including recommendations
as to the size, maturity, form and sale of debt as they
relate to project analysis.
E. Assist with policy analysis and with the review and
updating of the tax increment districts.
1-B
3. Compensation:
A. Compensation shall be at the rate of Ninety and 00/100
Dollars ($90.00) per hour.
B. Casserly, Molzahn & Associates, Inc. , shall submit an
itemized statement that clearly accounts for the hours
of service provided by Casserly, Molzahn & Associates,
Inc.
5. Other Reimbursements:
A. Casserly, Molzahn & Associates, Inc. , shall be reimbursed
for long distance calls and delivery services, as well
as for any filing fees that it incurs on behalf of the
Fridley HRA. All other expenses will be included as part
of the $90.00 per hour compensation rate.
Agreed and entered into this day of March, 1991.
CASSERLY, MOLZAHN & ASSOCIATES, INC.
By
James R. Casserly
FRIDLEY HOUSING AND
REDEVELOPMENT AUTHORITY
By
Lawrence R. Commers
Chairman
By
William W. Burns
Executive Director of HRA
2
•
j
1
2
•
E3 Community Development Department
I= HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
TO: Housingand Redevelopment Authority Members
;/1.
FROM: William W. Burns, City Manager p, A '
DATE: March 7, 1991
SUBJECT: Agreement for Legal Services with
Herrick & Newman
In addition to preparing an agreement for the legal services of
Casserly, Molzahn & Associates, Inc. , I have also prepared a
contract for the legal services to be provided by the law firm of
Herrick & Newman.
In order to determine the hourly rate, we reviewed a list of hourly
rates charged by municipal attorneys in various metropolitan area
cities. Based upon our review, I am satisfied that $85. 00 per hour
is an average hourly rate, and that this is a fair and equitable
increase over the $65.00 per hour rate that Herrick & Newman is now
receiving.
We recommend your approval of this agreement.
WWB:rsc
Attachment
I
` I
2_A
.
AGREEMENT FOR LEGAL SERVICES
BETWEEN THE
HOUSING AND REDEVELOPMENT AUTHORITY
AND HERRICK & NEWMAN LAW FIRM
FOR CITY ATTORNEY SERVICES
1. HRA Attorney Appointment: The law firm of Herrick & Newman
is appointed attorney for the City of Fridley Housing and
Redevelopment Authority (hereinafter "HRA") .
2 . Term of the Agreement: March 1, 1991, through December 31,
1992 .
3 . Duties and Responsibilities of the HRA Attorney:
A. Attend monthly HRA meetings.
B. Advise staff on all legal questions pertaining to the
work of the HRA.
C. Attend other meetings pertaining to economic development
or redevelopment projects upon the request of the City
Manager.
D. Review contracts and agreements upon the request of the
City Manager.
E. Perform title work, represent the HRA in property
acquisitions and condemnations, and in the sale of
property. Perform other work related to the acquisition
or sale of HRA property.
F. Represent the HRA in other litigation.
4 . Compensation:
A. The HRA attorney for the City of Fridley shall be
compensated at the rate of $85.00 per hour.
B. The HRA attorney shall submit an itemized statement that
clearly accounts for the hours of service provided by the
HRA attorney.
5. Other Reimbursements:
A. Expense advances for recording of deeds, filing fees,
charges for documents, and other expenses related to the
processing of litigation and property acquisition or sale
shall be subject to reimbursement by the City to the HRA
attorney.
0
2-B
B. All other expenses, such as dues, subscriptions,
telephone publications, secretarial services and
overhead, etc. , associated with the performance of legal
services shall be the responsibility of the HRA attorney.
Agreed and entered into this day of March, 1991.
HERRICK & NEWMAN
Law Firm
By
Virgil C. Herrick
FRIDLEY HOUSING AND
REDEVELOPMENT AUTHORITY
By
Lawrence R. Commers
Chairman
By
William W. Burns
Executive Director
2
I
3
a
1*---7 Community Development Department
I= HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 8, 1991
TO: Housing and Redevelopment Authority
FROM: William Burns, Executive Director of HRA
Barbara Dacy, Community Development Director
SUBJECT: Lake Pointe Appraisal
Attached is the proposed letter of agreement to hire Peter J.
Patchin to appraise the Lake Pointe property. Mr. Patchin is very
familiar with the Fridley area. He has recently completed
appraisal work for Medtronic. The proposed contract amount is
$5,700. We believe Mr. Patchin will prepare a thorough and
detailed appraisal for the HRA.
Staff recommends that the HRA approve the agreement as presented. ,,
BD:ls
M-91-164
1
3.
FPOM Peter J. Patchin & Associates MAR. 6. 1991 4:23 PM P 4/6 A
QUALIFICATIONS OF
PETER J. PATCHIN, AS APPRAISER
jARLY HISTORY
Born in Minneapolis, Minnesota in 1934. Elementary and secondary educa-
tion in Edina, Minnesota public schools.
$USINESS EXPERIENCE
Cargill, Inc. , Production Trainee, 1956-57.
U.S. Army Corps of Engineers, Topographic Mapping, 1957-59.
General Mills, Inc. , Staff Engineer, 1959-61.
Patchin Appraisals, Inc. , Staff Appraiser, 1961-65. Vice President,
1965-81.
Peter J. Patchin & Associates, Inc. , President, March, 1981 to present.
$DUCATIONAL WORK
Kansas State University, B.S. Degree, with honors, 1956.
William Mitchell College of Law, 1977-78
AIREA Courses 1A-1, 1A-2, 1B-1, 1B-2, 1B-3, 2-1, 2-2, 2-3, and 7, all
passed during 1980, Litigation Course in 1985.
Original AIREA course work passed 1964 through 1968.
Currently attends two to three appraisal seminars per year, one to
three days duration each.
Standards of Professional Practice - 1988.
PROFESSIONAL 4PFILIATIONS
Member, American Institute of Real Estate Appraisers (MAI)
Senior Member, American Society of Appraisers
Business Enterprise - Intangible Property Designations (ASA)
Member, American Society of Real Estate Counselors (CRE)
Affiliate Member, Minneapolis Board of Realtors
Licensed Real Estate Appraiser - State of Nebraska
PROFESSIONAL PUBLICATIONS
"Gross Multiplier vs. Capitalization Rates" - yaluation, November,
1971, Pages 88 - 95.
, "Depreciation Methods and Market Experience" - The A»praisal Journal,
October, 1980, Pages 503 - 510.
"Grain Elevators, Three Approaches To Value" - The Appraisal Jou nal,
July, 1983, Pages 392 - 400.
"Common Sense About Cash Equivalency" - The Appra4a1 Journal,
July, 1985, Pages 340 - 346.
"Valuation of Contaminated Properties" - ThejloraigaLlcurni0.,
January, 1988, Pages 7 - 16.
"Market Discounts for Undivided Minority Interests in Real Estate" -
Rgal Estate Issues, Vol. 13, Number 2, Fall/Winter 1988, Pages 14-16.
COURT EXPERIENCE
Qualified in District Courts in Minnesota, Michigan, Montana, and
New York
Qualified in U.S. Tax Court, State of Minnesota Tax Court, Federal Court,
District of Wisconsin
Pater J.Patchin&AasneInto.,Inc.
w
f f
FROM : Peter J. Patchin & Associates
MAR. 6. 1991 4:24 PM P 5/6 3-8
•
QUALIFICATIONS OF
PETER J. PATCHIN (Continued)
APPMISAL EXPERIENCE
Specializing in the appraisal of industrial, commercial and special
purpose properties, primarily to estimate market value on land,
buildings, machinery and equipment and intangible assets. Appraisal
experience on various types of properties include the following:
development lands, park lands, industrial river channel lands, utility
easements, office buildings, warehouses, factory lofts, shopping
centers, hotels, restaurants, service stations, apartment buildings,
grain elevators, flour and feed mills, breweries, malt plants, food
canneries, bakeries, dairies, bottling plants, schools, churches,
hospitals, machine tools, graphic arts plants, iron foundries.
Intangible asset experience includes leasehold interests, patents,
trademarks, copyrights, mailing lists, goodwill, as well as the valua-
tion of the entire business enterprise.
A,gPRAISAL CLIENT$ INCLUDE
Aetna Life & Casualty Co. Metropolitan Airports Commission
Bay State Milling Co. Minneapolis Community Development Agency
Burlington Northern, Inc. Minnesota Department of Transportation
Cargill, Inc. Minnesota Housing Finance Agency
Certain-teed, Corp. Mennel Milling Company
Control Data Corporation North Dakota State Tax Commission
Farmland Industries, Inc. Northern States Power Company
Garnac Grain Co. Pillsbury Company
General Mills, Inc. Ralston Purina Company
International Multifoods, Inc. Soo Line Railroad
Jefferson Company 3M Corporation
K Mart Corporation U.S. Internal Revenue Service
Krause - Anderson Companies U.S. West, Inc.
Louisana Highway Commission University of Minnesota
Medtronics, Inc.
*The American Institute of Real Estate Appraisers conducts a voluntary
program of continuing education for its designated members. MAIts and
RM's who meet the minimum standards of this program are awarded periodic
educational certification. I am certified under this program through
September 15, 1993. -
Peter 3.Pstehin&Asroeh►t.s,Inc.
FROM : Peter J. Patchim & Associates MAR. 6. 1991 4:25 PM P 6i6
31°C
$$URENCES
Minneapolis Community Development Agency
Suite 700, Midland Square
Minneapolis, MN 55401
Contact: Mr. Don Hennessy or Paul Johnson
342-1254
Minnesota Department of Transportation
Room 517, Transportation Building
St. Paul, MN 55155
Contact: mike strapp
296-8451
City of Shakopee
129 East 1st Avenue
Shakopee, MN 55379
Contact: Dennis Kraft, City Manager
445-3650
Cargill, Inc.
P.O. Box 9300
Minneapolis, MN 55440
Contact: Joe Fournier
475-7119
Control Data Corp.
8100 - 34th Avenue South
Minneapolis, MN 55440
Contact: Pat Conway
853-4950
Land OiLakes, Inc.
4001 Lexington Avenue
Arden Hills, MN 55440-0116
Contact: Gary Swoverland
481-2222
t y
FROM : Peter J. Patchin & Associates MAR. 6. 1991 11:59 AM P 2/3
3-D
Peter J.
Pa
tchin
& Associates, Inc. (612) 895-1205
Valuation Consultants
101 West Burnsville Parkway, Suite 200,Burnsville,Minnesota 55337 FAX (612) 895-1521
•
March 7, 1991
City of Fridley HRA
6431 University Avenue N.E.
Fridley, MN 55432
Attn: Ms. Barbara Dace
RE: Valuation Consulting and
Appraisal Services
Peter J. Patchin & Associates, Inc.
101 W. Burnsville Parkway, Ste. 200
Burnsville, Minnesota 55337
To whom it may concern:
This letter is intended to be a memorandum of understanding con-
cerning the engagement of Peter J. Patchin & Associates, In . fo
r
purpose of rendering valuation consultation and/or appraisal
reports. It is understood by both parties that the nature of the
assignment is as follows:
Type of Property: 40 Acre Redevelopment Site
Location: Northwest Corner 1-694 and
State Highway 165
Fridley, Minnesota
Function of Appraisal/
Consultation: Sale to developer.
Estimated Cost of
Services Rendered: $5,700 for appraisal report; plus
$125.00 per hour for time sub-
sequent to delivery of appraisal
report.
Terms - Total amount due whinterest days
charge will date
added
invoice, 1-1/2% per month
to accounts not paid by that time.
sr
FPOr1 : Peter J. Patchin a Associates MAR. 8. 1991 11:59 AM P 3/3 3_E
e .
•
Retainer Fee - to be
paid in advance of
commencement of.
assignment: None
Date: March 7, 1991
Sincerely,
PETER J. PATCHIN & ASSOCIATES, INC.
7;;;;›
4.101e7)?
0(‘ 4
Peter J. Patchin, MAX, ASA, CRE
President
PJP:prj
Firm Name: City of Fridley - HRA
Individual Responsible:
Signature:
Peter J. Pi+tebin& Acfiociates. Inc.
,e a
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RCommunity Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 6, 1991
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Consider Approval of Conveyance of Easement to
City of Fridley for Mississippi Street Improve-
ments on Rice Plaza Property
The Public Works Department has submitted to my office the attached
easement which conveys to the City of Fridley a 40 foot street,
utility, bikeway, walkway, landscaping, and street lighting
easement for the Mississippi Street improvements. Anoka County has
already received easements for the liquor store property and the
Kiffe Automotive property. As you are aware, an easement will also
be necessary after acquisition of the Dairy Queen property.
Staff recommends that the HRA authorize conveyance of the attached
easement.
For your information, we have not received a final schedule from
Anoka County as to construction; however, we anticipate bids will
be taken in June and July with construction beginning in August.
John Flora and I will be conducting a property owner meeting prior
to the construction start to make owners and shopping center
tenants aware of the proposed improvements.
BD:ls
M-91-155
Easement
Corporation(s) to Corporation(s)
No delinquent taxes and transfer entered;
Certificate of Real Estate Value ( ) filed
( ) not required
Certificate of Real Estate Value No.
, 19
County Auditor
by
Deputy
STATE DEED TAX DUE HEREON: $
Date , 19
FOR VALUABLE CONSIDERATION, The Fridley Housing and Redevelopment
Authority. Minnesota, Grantor, a public body and Corporate politic
under the laws of Minnesota, hereby conveys an easement to The City
of Fridley. Minnesot4, Grantee, a public body and Corporate politic
under the laws of Minnesota, real property in Anoka County,
Minnesota, described as follows:
See Exhibit A
The City of Fridley hereby accepts this easement for the above
mentioned purposes.
Shirley A. Haapala - City Clerk
Subject to reservations, restrictions and easements of record, if
any, together with all hereditaments and appurtenances belonging
thereto, subject to the following exceptions:
FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY
BY:
Lawrence R. Commers
Its Chairman
BY:
William W. Burns
Its Executive Director
STATE OF MINNESOTA )
)ss
County of
The foregoing instrument was acknowledged before me this
day of , 1991, by Lawrence R. Comers and William
W. Burns, the Chairman and the Executive Director of The Fridley
Housing and Redevelopment Authority. Minnesota, a public body and
Corporate politic under the laws of Minnesota on behalf of the
Fridley Housing and Redevelopment Authority.
Signature of Person Taking Acknowledgement
Title
Tax Statements for the real property
described in this instrument should
be sent to:
THIS INSTRUMENT WAS DRAFTED BY:
City of Fridley
6431 University Ave., N.E.
Fridley, MN 55432
,
•
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i9h foot street, aZBIBIT A
AlI tin9 easement described
443
Minnesotahat , which
°f Lot scribed as follows:
bikeway/walkway,
20 ginning a which Iles nohe l' SYIv landscaping and street
t o feet so° ahPoi� °f onnt thea westerly
the following dePlat scribed
is
so
east
Anoka
20 feet
ting other/point
thethe Northwest o nerve of said cribed line:
Y,
Northeast
corner lot 1oec f said Lott 2•• distant
ce
f said Lo�t and distant
there
1
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[J Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: February 28, 1991
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Award for Bid for Lake Pointe Maintenance
Project #218
The HRA, in the 1991 budget, authorized $36,500.00 for the
maintenance service to mow and fertilize the grass at Lake Pointe
and $7,500.00 for tree/fertilizer maintenance. The bids for this
project were received Wednesday, February 27, 1991, and the lowest
bidder was Greenmasters Industries, Inc. , with a bid of $27,680.00
for both maintenance projects.
Greenmasters Industries, Inc. , bid $25;540.00 for the grass mowing
and fertilizer project, $965.00 for tree pruning, and $1,175.00 for
tree fertilization. Greenmasters Industries, Inc. , originally had
the contract for the maintenance of the site in 1987. Talberg Lawn
& Landscape had the contract for the last two years.
Jon Thompson from the Engineering Department reports that he is
satisfied with Greenmasters' personnel and equipment. Jon Thompson
recommends, and I concur, that the BRA should award the bid to
Greenmasters Industries, Inc. , at $27,680.00.
BD:ls
M-91-148
Y
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• • Engineering
N Sewer
W Y Water
Q
cc 0 Parks
0 3 Streets
V Maintenance
W J
CC CO
MEMORANDUM
•
TO: �YBarbara Dacy, Community Development Director PW91-63
'
FROM: Jon Thompson, Construction Inspector
DATE: February 27, 1991
SUBJECT: Lake Pointe Development Maintenance Project No. 218
Bids were received for Lake Pointe Development Maintenance Project
No. 218 on Wednesday, February 27, 1991, at 10:30 a.m. The low
bidder was Greenmasters Industries Inc. with a bid of $27,680.00.
This included the Base Bid plus Alternates A and B.
Attached is a summary sheet showing the plan holders and bid
amounts. Please have the HRA approve . the contract award to
Greenmasters Industries Inc. for $27,680.00 at the March 14, 1991,
HRA meeting.
JT/kn
Attachment
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DATE 03/07/91 CITY OF FRIDLEY - HRA PAGE 1
PROGRAM P008 CHECK REGISTER
CHECK RUN BATCH # :0002 002 HRA 6
VENDOR DISC:. JOB
DESCRIPTION INV # PO/INV # SEG # PC.NT AMOUNT ACCT NUMBER NMBR MESSAGES
2100 **** CHECK-PREPAID ****
A00040 ANOKA COUNTY TREASURER
CREATE SEL OF TIF PARCELS 00394-01 52UZGL0.0000 54.00 DR460-20200 ACCOUNTS PAYABLE
54.00 CR460-10100 CASH
**** TOTAL VENDOR **** $ 54.00
2101 **** CHECJC-PREPAID ****
C00044 CASSERLY LAW OFFICE
JAN LEGAL SERVICES 00395-01 521IZ4 0.0000 135.00 ACCOUNTS
DR450-20200
PAYABLE
135.00 CR450-10100 CASH
JAN LEGAL SERVICES 00395-02 5 Z8B00,0000► 697.50 0R455-20200 ACCOUNTS PAYABLE
697.50 CR455-10100 CASH
JAN LEGAL SERVICES 00395-03 52UZB60,0000 1,390.50 DR460-20200 ACCOUNTS PAYABLE
1,390.50 CR460-10100 CASH
**** TOTAL VENDOR **** $ 2,223.00
2102 **** CHECK-PREPAID ****
F00072 FIRST TRUST
AGENT FEES/EXPENSES 00396-01 52fJZ400.0000 758.79 DR383-20200
ACCOUNTS PAYABLE
758,79 CR383-10100 CASH
**** TOTAL VENDOR **** $ 758.79
2103 **** CHECK-PREPAID ****
F00023 FRIDLEY, CITY OF
1990 EXPENSES 00397-05 52UZ570.0000 277.61 DR450-20200 ACCOUNTS PAYABLE
277.61 CR450-10100 CASH
1990 EXPENSES 00397-06 521J77?0.0600
121.75 i1R450-2(170(1 O(•r•ri}ii9rc anyprd r
121.75 CR450-10100 CASH
1990 EXPENSES 00397-07 52U17M0.0000 410.00 DR450-20200 ACCOUNTS PAYABLE
1990 EXPENSES OCl_t97-0'1 S U 410.00 CR450-10100 CASH
2 ZAPO.0000 32.55 DR460-20200 ACCOUNTS PAYABLE
32.55 CR460-10100 CASH
4TH OTR ADMINISTRATIVE BI 00397-01 52UZCP0,0000 37,451.75 DR460-20200
ACCOUNTS PAYABLE
37,451.75 CR460-10100 CASH
1990 EXPENSES 00397-03 521J1DL0.0000 3,07 DR460-20200
ACCOUNTS PAYABLE
3.07 CR460-10100 CASH
1990 EXPENSES 00397-04 52UZ3D0.0000 144.27 0R460-20200 ACCOUNTS PAYABLE
144.27 CR460-10100 CASH
**** TOTAL VENDOR **** $ 8,441.00
2104 **** CHECK-PREPAID ****
F00023 FRIDLEY, CITY OF
JAN EXPENSES 00398-05 521Z790,0000 30.75 tR450-202(0
ACCOUNTS PAYABLE
JAN30.75 CR450-10100 CASH
EXPENSES
00398-06 52U79Y0.0000 7.06 DR455-20200 ACCOUNTS PAYABLE
JAN ADMINISTRATIVE BILLIN 00398-01 52UZCYf1,00Up 7.06 CR455-10100 CASH
13,108,12 DR460-20200 ACCOUNTS PAYABLE
JAN EXPENES13,1►8.12 CR460-10100 CASH
00398-02 52UZDS0.0000 30.00 DR460-20200 ACCOUNTS PAYABLE
30.00 CR460-10100 CASH
JAN EXPENSES 00398-03 521ZE20,0000 29. ? DR460-L?iuu ACCOUNTS
PAYABLE
29.43 CR460-10100 CASH
I
r,4TE 0,3ir;7/71 CITY OF FRIDLEY - HRA PAGE
PROGRAM P00i8 CHECK REGISTER 6-A
CHECK' RUN BATCH # :0002 002 HRA
VENDOR DISC. JOB
DESCRIPTION INV # PO/INV # SEC) # PCNT AMOUNT ACCT NUMBER NMBR MESSAGES
JAN EXPENSES 00398-04 52UZFFO.0000 99.00 DR460-20200 ACCOUNTS PAYABLE
99.00 CR460-10100 CASH
JAN EXPENSES 00398-07 52UZFN0.0000 250.00 DR460-20200 ACCOUNTS PAYABLE
250.00 CR460-10100 CASH
**** TOTAL VENDOR **** $ 13,554.36
2105 **** CHECK-PREPAID ****
Z20113 SHENEHON-GOODLUND-TAYLOR, INC:.
LETTER OF OPINION 00399-01 52UZ6W0.0000 800.00 DR450-20200 ACCOUNTS PAYABLE
800.00 CR450-10100 CASH
**** TOTAL VENDOR **** $ 800.00
2106 **** CHECK-PREPAID ****
B00176 BRIGGS AND MORGAN PROF. ASSOC.
LEGAL SERVICE-TAX INC/SCH 00400-01 52UZAYO.0000 96.75 tlR460-20200 ACCOUNTS PAYABLE
96.75 CR460-10100 CASH
**** TOTAL VENDOR **** $ 96.75
C00044 CASSERLY LAW OFFICE
FEB LEGAL SERVICES 00401-01 52UZ4Z0.0000 495.00 DR450-20200 ACCOUNTS PAYABLE
495.00 CR450-10100 CASH
FEB LEGAL SERVICES 00401-02 52UZ820.0000 22.50 DR451-20200 ACCOUNTS PAYABLE
22.50 CR451-10100 CASH
FEB LEGAL SERVICES 00401-03 52UZ8H0.0000 1,215,00 DR455-20200 ACCOUNTS PAYABLE
1,215.00 CR455-10100 CASH
FEB LEGAL SERVICES 00401-04 52UZCH0.0000 1,201.75 t 460-2O20O ACCOUNTS PAYABLE
1,201.75 CR460-10100 CASH
**** TOTAL VENDOR **** $ 2,934.25
2108 **** CHECK-PREPAID ****
E00062 ERNST ASSOCIATES
MAINTENANCE FOR TREES/SHR 00402-01 52UZAD0.0000 65.00 DR455-20200 ACCOUNTS PAYABLE
65.00 CR455-10100 CASH
**** TOTAL VENDOR **** $ 65.00
2109 **** CHECK-PREPAID ****
F00023 FRIDLEY, CITY OF
FEB EXPENSES 00403-04 52UZ5FO.0000 172.65 DR450-20200 ACCOUNTS PAYABLE
172.65 CR450-10100 CASH
FEB EXPENSES 00403-05 52UZ7F0.0000 31.26 DR450-20200 ACCOUNTS PAYABLE
31.26 CR450-10100 CASH
FEN EXPENSES 00403-06 521080.0000 345.00 DR450-20200 ACCOUNTS PAYABLE
345.00 CR450-10100 CASH
FEB EXPENSES 00403-07 52UZA40.0000 7.06 DR455-20200 ACCOUNTS PAYABLE
7.06 CR455-10100 CASH
JAN/FEB PERSONAL SERVICES 00403-01 521JZD50.0000 13,612,62 DR460-20200 ACCOUNTS PAYABLE
13,612.62 CR460-10100 CASH
FEB EXPENSES 00403-02 52UZFV0.0000 40.50 DR460-20200 ACCOUNTS PAYABLE
40.50 CR460-10100 CASH
FEB EXPENSES 00403-03 52UZG30.0000 185.03 DR460-20200 ACCOUNTS PAYABLE
185.03 CR460-10100 CASH
jl
it
7
Community Development Department
C\ HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 8, 1991
TO: Housing and Redevelopment Authority
FROM: William Burns, Executive Director of HRA
Barbara Dacy, Community Development Director
SUBJECT: Fridley Town Square Redevelopment Plan Amendment
On February 25, 1991, the City Council approved Scott Ericson's
request to amend the redevelopment plan to add a drive-through
window at the west end of the proposed shopping center. City
Council placed a number of stipulations on the approval beyond the
original 17 stipulations that were approved in June 1990. One of
the 18 additional stipulations was to require a $10, 000 letter of
credit to be retained for two years to ensure that the double
baffle air filtration system from the fast food restaurant performs
properly and also that money is available for a traffic study if
significant changes in traffic patterns occur.
Attached for discussion by the HRA is Jim Casserly's memo regarding
the equity participation component of the proposed development
contract. Casserly will be present at Thursday's meeting to
discuss this in more detail with the HRA.
WB/BD:ls
M-91-165
h.
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Casserly Molzahn & Associates, Inc.
215 South 11th Street, Suite 200 • Minneapolis • Minnesota 55403
Office(612)342-2277 • Fax(612)332-4765
MEMORANDUM
TO: Fridley H.R.A.
FROM: James R. Casserly
DATE: March 3, 1991
RE: Update on Recapture Provisions for Town Square Contract
In December of 1990, the HRA discussed the concept of having an
equity participation for its 250, 000 investment in the Fridley
Town Square project. The March 1 , 1991 draft of the Contract
between the HRA and Town Square Associates provides for such
equity participation.
A very brief overview of the Contract is as follows: the HRA
would invest 250, 000 (see Section 3. 3) in the project upon the
issuance of a Certificate of Completion (see Section 4. 4) . The
Developer would have to build the project an deocribed (pee
definition of Minimum Improvements) and would execute an
Assessment Agreement (see Article IX) stating the minimum market
value (see definition of Estimated Market Value) . The HRA
investment would be secured by a second Mortgage (see Section
7 .7) .
The mechanics for the equity participation are found in Section
I, Definitions, and Section VII, Repayment and Security of Equity
Investment and would work as follows: Upon the transfer of the
project the Net Appreciation of the project would be calculated
and would be multiplied by a fraction that represents the ratio
of the HRA investment to the Developer investment. The minimum
return to the HRA is 100,000 and the maximum return would be
300, 000. The Developer has the option in Section 7.5 of repaying
the equity participation with interest over five years.
Several issues still need resolution including problems resulting
from the HRA Second Mortgage. There will be numerous technical
changes but the final contract should be substantially as it
appears.
7-B
TOWN SQUARE EQUITY
PARTICIPATION AGREEMENT
1 . Net appreciation of project x ratio of HRA equity investment
to developer' s equity investment.
2. Minimum return to HRA = $100, 000.
3. Maximum return to HRA = $300,000.
4. If sale within 2 years from certificate of occupancy, then
250, 000 is returned.
5 . If project is not sold at the end of 7 years, project is
appraised. IIRA receives return based on current appraisal.
6. Net appresciation = sale price - (Developer's investment +
13% return on investment for each year of project life +
mortgage balance) .
7 . Repayment to HRA may be amortized with interest over 5
years.
MHR 07 '91 12:33 FLIMT61c ;34 :3 tic:
7'C
EXAMPLE 1
Project Costs 2, 500, 000
Developer Cash & Net Total Xnv. 350,000
Authority Investment 250,000
Ratio of Authority Inv. to Dev. Inv. 71%
Mortgages 2, 000, 000
Cash on Cash Return Rate 13%
Sale Price ', 500, U00
Sale Date 2 Years
Net Appreciation 59, 000
HRA Repayment 41 ,890
However, the minimum repayment to the Authority is 100, 000. So
in this example, the developer receives 50, 000 gross profit for
his 350, 000 investment.
MAF 0' '91 1C:33 FLINT612_334_3382_
7_D
•
EXAMPLE 2
Project Costs 2, 500, 000
Developer Cash & Net Total Inv. 350,000
Authority Investment 250, 000
Ratio of Authority Inv. to Dev. Inv. 71%
Mortgages 2, 000, 000
Cash on Cash Return Rate 13%
Sale Price 3, 500, 000
Sale Date 7 years
Net Appreciation 831 , 500
HRA Repayment 590, 365
The Maximum repayment to the Authority is 300, 000. In this
instance, the developer receives a gross profit of 950, 000 for
his 350, 000 investment.
`�
r
INFORMATION ITEMS
8
1
CITY OF
FRIDLEY
FRIDLEY MMUNICII'AL CENTER •6431 UNIVERSITY AVE. N.E. FRIDLEY. MN 55432•(6111 571-3450• FAX (61/1 571-1'_ti7
March 7 , 1991
Dr. Douglas Otto
Superintendent of Schools
Independent School District #11
11299 Hanson Boulevard N.W.
Coon Rapids, Mn. 55433
Dear Dr. Otto:
Enclosed is the second and final referendum refund payment, in the
amount of $6,426.24 , for payable year 1990. This amount is
$7 , 402 . 60 (one half of total) less delinquents of $976. 36.
Recently, the Fridley HRA has spent much time discussing the amount
of discretionary referendum levy monies to return to the school
districts. At the February 14 , 1991 meeting the HRA agreed to
return the full amount of the discretionary refunds to the school
districts for payable 1991. This amount is ESTIMATED to be about
$14 , 805. 20, the same as payable 1990, before delinquent taxes are
subtracted. After closely analyzing their own financial situation,
it is highly likely that the Fridley HRA will put a cap on the
amount of discretionary money returned for payable 1992 and the
following years. Therefore, when preparing for the 92/93 school
year budget it would be prudent not to budget as much money as in
the past until the HRA has made a decision on the amount they will
return.
If you have any questions, please feel free to call me.
Sincerely,
Richard D. Pribyl
Finance Director
RDP/ph
I
I I
l I
4
® 8-A
Oai
CITY OF
FRIDLEY
FRIDLEY MUNICIPAL CENTER •6431 UNIVERSITY AVE. N.E. FRIDLEY,MN 55432 •(612)57I-3450• FAX (612) 571-11_87
March 7, 1991
Dr. Dennis E. Rens
Superintendent of Schools
Independent School District #14
6000 West Moore Lake Drive
Fridley, MN 55432
Dear Dr. Rens:
Enclosed is the second and final referendum refund payment, in the
amount of $67, 945. 33 , for payable year 1990. This amount is
$82 , 268 . 03 (one half of total) less delinquents of $14, 322. 69 .
Recently, the Fridley HRA has spent much time discussing the amount
of discretionary referendum levy monies to return to the school
districts. At the February 14 , 1991 meeting the HRA agreed to
return the full amount of the discretionary refunds to the school
districts for payable 1991. This amount is ESTIMATED to be about
$14 ,805. 20, the same as payable 1990, before delinquent taxes are
subtracted. After closely analyzing their own financial situation,
it is highly likely that the Fridley HRA will put a cap on the
amount of discretionary money returned for payable 1992 and the
following years. Therefore, when preparing for the 92/93 school
s in
year budget it would be prudent not to budget as much money the HRA has made a decision on on the amount they will
the past until will
return.
If you have any questions, please feel free to call me.
Sincerely,
Richard D. Pribyl
Finance Director
RDP/ph
5
A
imi
CITY OF
FRIDLEY
FRIDLEY MUNICIPAL CENTER •6431 UNIVERSITY AVE. N.E. FRIDLEY. MN 55431 •(611)571-345(1• FAX (611) 57I-I387
March 7, 1991
Dr. Conrad (Tim) Rummel
Superintendent of Schools
Independent School District #13
1400 49th Avenue N.E.
Columbia Heights, MN 55421
Dear Dr. Rummel:
Enclosed is the second and final referendum refund payment, in the
amount of $10, 291.80, for payable year 1990. This amount is
$17, 049. 47 (one half of total) less delinquents of $6,757.66.
Recently, the Fridley HRA has spent much time discussing the amount
of discretionary referendum levy monies to return to the school
districts. At the February 14 , 1991 meeting the HRA agreed to
return the full amount of the discretionary refunds to the school
districts for payable 1991. This amount is ESTIMATED to be about
$14 ,805. 20, the same as payable 1990, before delinquent taxes are
subtracted. After closely analyzing their own financial situation,
it is highly likely that the Fridley HRA will put a cap on the
amount of discretionary money returned for payable 1992 and the
following years. Therefore, when preparing for the 92/93 school
year budget it would be prudent not to budget as much money as in
the past until the HRA has made a decision on the amount they will
return.
If you have any questions, please feel free to call me.
Sincerely,
Richard D. Pribyl
Finance Director
RDP/ph
I
CITY OF
FRIDLEY
FRIDLEY MUNICIPAL CENTER •6431 UNIVERSITY AVE. N.E. FRIDLEY, MN 55432 • (612)571.3450• FAX (612) 571-1287
March 7, 1991
Dr. Chris L. Huber
Superintendent of Schools
Independent School District #16
8000 Highway 65 N.E.
Minneapolis, MN 55432
Dear Dr. Huber:
Enclosed is the second and final referendum refund payment, in the
amount of $23 , 809 . 63 , for payable year 1990. This amount is
$24 , 179. 32 (one half of total) less delinquents of $369. 68 .
Recently, the Fridley HRA has spent much time discussing the amount
of discretionary referendum levy monies to return to the school
districts. At the February 14 , 1991 meeting the HRA agreed to
return the full amount of the discretionary refunds to the school
districts for payable 1991. This amount is ESTIMATED to be about
$14 , 805. 20, the same as payable 1990, before delinquent taxes are
subtracted. After closely analyzing their own financial situation,
it is highly likely that the Fridley HRA will put a cap on the
amount of discretionary money returned for payable 1992 and the
following years. Therefore, when preparing for the 92/93 school
year budget it would be prudent not to budget as much money as in
the past until the HRA has made a decision on the amount they will
return.
If you have any questions, please feel free to call me.
Sincerely,
Richard D. Pribyl
Finance Director
RDP/ph
P
9
[� Community Development Departmen
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
TO: Housing and Redevelopment Authority Members f �'
FROM: William W. Burns, Executive Director of HRA 1$,
ql'
DATE: March 4, 1991
SUBJECT: Response to Suh's Attorney
Since the last HRA meeting, I have had Virgil review the
suggestions of George Borer, the attorney for Mr. and Mrs. Suh.
Virgil, in general, did not feel that the City's legal liability
to Mr. and Mrs. Suh was very substantial. He pointed out past case
history seemed to indicate that any potential damage the City might
have caused to Mr. and Mrs. Suh is not equivalent to other
instances where the Courts have held in favor of cities.
Virgil also recommended against taking the Suh property out of the
Southwest Quadrant tax increment district, and suggested that we
do not agree to postpone condemnation for any given period of time.
With the benefit of Virgil's recommendations, I called Mr. Borer.
In our conversation, I repeated Virgil's recommendations. I also
pointed out that if Mr. and Mrs. Suh wanted to make an offer we
could not refuse, they were certainly welcome to do so. However,
I informed to Mr. Borer that in doing this, we were not proposing
beginning negotiations, but were simply saying that we would
consider any offer they might want to make.
Mr. Borer indicated that he will respond shortly with a proposal
from Mr. and Mrs. Suh. We might have a proposal by the next HRA
meeting. If you feel that we should proceed in a different
direction, please let me know. Thank you for reviewing this
matter.
WWB:rsc
Attachments
l
Y
MEMORANDUM 9-A
(' _ Municipal Center
Ili 6431 University Avenue N.E. Office of the City Manager
Fridley, MN 55432 William W. Burns
CITYOF (612) 571-3450
FRIDLEY
TO: File
FROM: William W. Burns, City Manager .
DATE: March 4, 1991
SUBJECT: Suh Property
On March 4, 1991, I reviewed Virgil's legal opinion on the Suh
property with George Borer on the telephone. I indicated to him
that case law did not seem to support the obligations of the
Fridley HRA to purchase the Suh property. Moreover, we were
constrained by our bond issue from removing the Suh property from
the HRA district. Finally, while there was no specific case
history, there was other state law that would tend to indicate that
the HRA should not give away its condemnation authority or its
right to condemn the Suh property until sometime in the future,
five years or more away. .
I did indicate to Mr. Borer, however, that although the City was
not eager to land bank or own the Suh property, we would be happy
to consider any proposal that they would make. Mr. Borer indicated
that he would prepare something and get back to us soon.
WWB:rsc
V
• . HERRIC1K & sNEW AN 9-B
B
ATTORNEYS AT LAW
Virgil C. Herrick
James D. Hoeft MEMORANDUM
Gregg V. Herrick
Of Counsel
David P. Newman
TO: William Burns
FROM: Virgil C. Herrick ' 1.4,
DATE: February 22 , 1991
RE: Request for legal opinion regarding Suh property
This Memorandum is in response to your request dated February 20 ,
1991, regarding the above subject. You have requested that I
review the letter sent to the City by George Borer, attorney for
Mr. and Mrs. Suh. I have been asked to comment regarding the
options contained in that letter and state my opinion whether the
City has any legal liability and whether these options are
desirable.
You also asked me to respond to a question by Councilman Steven
Billings. Mr. Billings has asked whether we would increase our
liability if we stipulated that the Fridley Town Square project
amendment is to be approved for the relocation of the Burger King
restaurant. I will answer both of your requests in this
Memorandum.
Mr. Borer has asked that the HRA take one of three actions as
they relate to the property of Dr. and Mrs. Suh. The first, and
preferred action, would be to have the HRA purchase the Suh
property. If the HRA declines to purchase the Suh property Mr. Borer
has suggested two alternatives. The first alternative would be
to delete the Suh property from the HRA redevelopment plan. The
second alternative would be for the HRA and/or the City to enter
into an agreement with the Suhs that they would not condemn the
property for a period of at least five years.
In support of Mr. Borer 's request he has indicated that 1) the
Suh property has been in the development district for an
unreasonable time period; 2 ) that because the property is in a
redevelopment district this fact has diminished the owners '
investment expectations; and 3) the property owners need to make
improvements to the property in order to attract tenants and that
it is not fair to the owners to be required to make investment in
the property when they do not know how long they will retain
ownership of the property.
Suite 205, 6401 University Avenue N.E., Fridley, Minnesota 55432, 612-571-3850
� ' r
9-C
William Burns
February 22, 1991
Page -2-
The Suhs ' basic complaint is that they have been adversely
affected by the redevelopment plans of the Housing and
Redevelopment Authority. Assuming this to be true it does not
create a liability on the part of the City or the HRA. This
issue was decided by the Minnesota Supreme Court in the case of
Orfield v. Housing and Redevelopment Authority of St. Paul, 305
Minn. 336, 232 NW 2d 923 (1975) . In that case the property
owners filed a suit to compel condemnation on the basis of an
alleged taking, damaging or destroying of their property. The
claim was that the redevelopment had caused them to lose tenants,
acquire undesirable tenants and caused difficulty in obtaining
caretakers. The property owners also claimed that the action of
the HRA had caused them to suffer substantial losses in profits
over the preceding years. The Court stated that the petitioners
could only be granted condemnation if the HRA's activities
constituted a direct and substantial invasion of their property
rights and consequent diminution in their property values, that
it amounts to a taking. The Court held that under the facts in
that case that it did not constitute a taking. In reviewing the
facts of the Orfield case it is my conclusion that the damage
caused to the property owners in that case was substantially more
severe than those involving the Suh property. The Orfield case
was followed more recently in the case of Fitger Brewing Company
v. The State of Minnesota, 416 NW 2d 200. Again, in the Fitger
case, the property owners suffered substantially greater damage
by the action taken by the government agency than is true in the
Suh situation. I am of the opinion that neither the City nor the
HRA has any legal liability as it pertains to the Suh property.
Clearly the HRA could enter into negotiations with Dr. and Mrs.
Suh and purchase the property. The only requirement would be
that the purchase would be for a public purpose. Inasmuch as the
property is in a redevelopment district and the HRA is actively
pursuing a developer this purchase would be for a public purpose.
This would be similar to the HRA having purchased the Rice Creek
Plaza and the building housing the Fridley Municipal Liquor
Store.
A • r
e
9-D
William Burns
February 22, 1991
Page -3-
Whether the HRA should purchase this property at this time is an
economic decision. The owners may be willing to sell at an
attractive price. However, considering the past success in
finding a developer, it might be necessary for the HRA to hold
the property for a substantial time. In view of the pr
esent real
estate market I would be reluctant to purchase this property at
this time.
I do not believe that the HRA can or should delete the Suh
property from the HRA development plan. There is a provision in
the statute that would authorize an amendment to the boundaries
of the development district. However, the HRA has issued bonds
and has pledged the properties within the development district as
security to the bond holders. I have discussed this matter with
Jim Casserly and we both agree that there would be a legal
question about removing property that has been pledged to support
outstanding bonds .
As a second alternative Mr. Borer has requested that the HRA or
the City enter into an agreement not to condemn the Suh property
for a period of at least five years . Again, I do not feel that
the City or the HRA can or should enter into this type of
agreement. There are no specific Minnesota cases dealing with
the question of whether a municipality may contract away its
right to enter an eminent domain proceedings. However, McQuillan
on Municipal Corporations, at Section 32 .14, states "a municipal
corporation cannot surrender the power of eminent domain
conferred upon it nor bind itself to a restricted exercise of the
power" . Several cases from other states are cited supporting
this proposition.
Aside from the specific question of whether a municipality can
contract away its eminent domain authority there are two basic
rules of law that would apply. The first is that a municipality
cannot enter into a contract to surrender its authority granted
to it by the legislature. The second basic principle is that one
city council cannot enter into an agreement to bind a future
council. This general principle does not apply to certain types
of contracts but in my opinion would apply to a restriction
placed on a future council to exercise a police power or an
eminent domain power.
9-E
William Burns
February 22, 1991
Page -4-
Councilman Billings has asked the question whether the City would
incur any liability if we stipulated that the Fridley Town Square
project amendment is to be approved for the relocation of the
Burger King restaurant. The developers of the Town Square project
have petitioned the City to amend the development plan to
authorize a drive-thru restaurant. At the last council meeting
they indicated that they would limit this request to the Burger
King restaurant which is presently located in the southwest
quadrant of Mississippi and University in property owned by Dr.
and Mrs. Suh. Neither the City nor the HRA have done anything to
interfere with any contract rights between Burger King and the
Suhs. Burger King has come to the City requesting permission to
move their business from one location to another. If they have
any leasehold obligations with the Suhs that is a matter between
private parties. If they do not they are free to move their
business to any location that is properly zoned. I do not feel
that the City would incur any liability by approving the request
of the Town Square developer and Burger King to authorize their
location within the Town Square project.
VCH lal
* F k
1
FINANCE DEPARTMENT 10
MEMORANDUM
TO: WILLIAM W. BURNS, CITY MANAGER
FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR
SHARON PETTING, STAFF ACCOUNTANT
SUBJECT: HRA INSURANCE
DATE: March 8, 1991
Per the HRA's request, the attached resume of insurance should
explain the different insurance coverage the City and the HRA
carry. Below I will explain how the premiums which relate to the
HRA are allocated.
The General Liability premium is based upon the dollar value of
the City' s operations. The City's premium is allocated between
all the applicable divisions, including the HRA based upon the
previous years expenditures.
The Municipal Errors & Omissions (Public Officials Personal)
Liability premium is allocated based upon the five City Council
members, the Department Managers, some Division Managers and the
HRA based upon two members.
Inverse Condemnation is totally allocated to the HRA due to their
greater exposure of this type of claim. The 1991 premium is
$3, 282.
The HRA is also allocated a portion of T.C. Field's compensation
for services fee. The amount allocated to the City Departments
and the HRA is based upon the portion of the premium charged for
property coverage (the HRA is not allocated a portion of this) and
the General Liability premium. T.C. Fields charges us based upon
a fee basis versus a commission basis. Their fee for 1991 is
$19,721 which is the same fee they have charged since 1985.
The premiums for 1991 are on average 3% greater than 1990. The
amount which will be allocated to the HRA will depend upon their
portion of the total expenditures for 1990. These numbers will
not be known until the 1990 financial statement is complete.
Hopefully, this will answer any questions they have.
RDP/sf
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1
CITY OF FRIDLEY
MEMORANDUM
TO: . HRA COMMISSION MEMBERS
FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR
PAUL S. HANSEN, ACCOUNTANT
SUBJECT: DUTIES OF PROFESSIONAL CONSULTANTS
DATE: March 8, 1991
Per the HRA commission's request, at the February 14th meeting,
this memo briefly describes the services provided by the
professional consultants used by the Fridley HRA.
Jim Casserly Project Consultant - Analyzes the
Casserly Law Office, P.A. financing options available for
specific redevelopment projects.
Jim Hoeft HRA Attorney
Virgil Herrick HRA Attorney
Herrick & Newman
First Trust Paying agents for bond issues.
They are not consultants.
Jim Omeara Bond Counsel. Develops school
Briggs & Morgan districts referendum return
agreements. Prepares legal
work on bond issues and related tax
increment district issues.
Bob Thistle Financial Consultant - Analyzes
Springstead, Inc. bond issue alternatives for HRA,
structures them, and takes them to
market.
Ray Haik His services are used in special
Popham, Haik, & etc. litigation cases (i.e. Lake Pointe) .
If you have any questions, feel free to call.
12
OF:72J Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
March 7, 1991
Mr. Walter Rasmussen
7806 Alden Way N.E.
Fridley, MN 55432
Dear Walter:
It is with sadness that we receive your letter of resignation. As
we accept it:, we would like to thank you for your 8 1/2 years of
service to the Fridley Housing and Redevelopment Authority, and
wish you a speedy recovery from your illness.
our thoughts will be with you in the days and months ahead.
Sincerely,
Lawrence R. Commers
Chairman, Fridley HRA
/rsc
.
•
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1
1
13
nEJ Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 7, 1991
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Winfield Development
At the February 14, 1991 HRA meeting, Chairperson Commers inquired
as to whether or not the City owes any money to Winfield
Development. I have researched the file and conferred with Jim
Casserly, and we have found two memos which required Winfield
Development to submit $20, 000 as "a fee" to defray attorney and
staff expenses for the 57th Place redevelopment project. Winfield
paid the HRA $2,500 in 1989. The remaining sum of $17,500 was to
be paid upon execution of a development contract. Because the
development contract was not executed, Winfield did not forward the
remaining $17, 500.
BD/dn
M-91-156
14
nit Develo me nt De artment
Commu y p P
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
TO: Housing and Redevelopment Authority Members
FROM: William W. Burns, Executive Director of HRA ,�,
DATE: March 7, 1991
SUBJECT: Rapid Oil Site
Since the last HRA meeting, I met with Jack Lemley of Ashland Oil
to discuss the possible HRA acquisition of the Rapid Oil site on
University Avenue. Mr. Lemley indicated that Ashland Oil would be
a reluctant seller of the site. He did say, however, that they
would consider any offer we made. He also indicated that he was
willing to hold off on the company's request for rezoning and a
special use permit until we had time to conduct an appraisal and
make an offer.
In order to begin the process, I have asked Barbara Dacy to employ
Denny Taylor, an MAI appraiser, to develop an appraisal price for
the Rapid Oil site. It should be available within three to four
weeks. Additionally, I have asked Chuck McKusick, Fire Chief, and
John G. Flora, Public Works Director, to evaluate the Delta
environmental report that was prepared for Ashland Oil and the
MPCA. Although this is somewhat a rehash of old material, I would
like to see for myself whether or not we can come up with a better
idea of what the cleanup costs are for the Rapid Oil site.
I have attached a memorandum to the file regarding my meeting with
Mr. Lemley, and a memorandum to John G. Flora and Chuck McKusick
for your review. Although I will probably be absent from the
meeting on March 14, 1991, I would like to know whether or not my
direction is consistent with your sense of direction on this issue.
WWB:rsc
Attachment
c 0
0
MEMORANDUM 14-A
S Municipal Center
le 6431 University Avenue N.E. Office of the City Manager
Fridley, MN 55432 William W. Burns
CITYOF (612) 571-3450
FRIDLEY
TO: File
FROM: William W. Burns, City Manageri"a
V
DATE: February 28, 1991
SUBJECT: Meeting Jack Lemley of Ashland Oil - February 27, 1991
At approximately 4:10 p.m. , I met with Jack Lemley of Ashland Oil to
discuss the possible HRA acquisition of the Rapid Oil site on University
Avenue. We discussed the following during our meeting:
1. Mr. Lemley indicated that they had done little or nothing to
accomplish the cleanup of the site. They are waiting for the
City to tell them whether or not the City will rezone the
property and allow them to reconstruct their Rapid Oil business.
2. I did not get any other information regarding the expected costs
of the cleanup of the Rapid Oil site. Mr. Lemley said that in
a "worse case scenario" they would spend $300,000 to $500,000 to
correct the problems. He also said that on occasion, it has
taken five to ten years.
3. Mr. Lemley indicated that they would be willing to enter into a
negotiated sale of the site if the price was right. He pointed
out, however, that their primary objective is to use the site for
Rapid Oil. They are a reluctant seller.
4. Mr. Lemley and I agreed that I would prepare an offer to Ashland
Oil that was based primarily upon an appraisal. He agreed that
the application for rezoning of the special use permit could wait
until it is known whether or not Ashland Oil is willing to
consider the offer we develop.
5. I asked Mr. Lemley how much he thought they were going to invest
into site improvements. He said that in the past, they talked
about a figure of $200,000. He said he could check to determine
how much they are currently expecting to put into the site.
In general, I think we had a very cordial meeting. Mr. Lemley did say
that they are not going to sell the site for $200,000, and that any
offer we make should be substantially higher.
WWB:rsc
cc: Barbara Dacy, Community Development Director
MEMORANDUM 14-B
tjfe Municipal Center
6431 University Avenue N.E. Office of the City Manager
` J Fridley, MN 55432
William W. Burns
CIIYOF (612) S71-3450
FRIDLEY
TO: John G. Flora, Public Works Director
Chuck McKusick, Fire Chief
FROM: William W. Burns, City Manager
DATE: March 4, 1991 )1
SUBJECT: Rapid Oil Site /
John and Chuck:
As you are probably aware, I am trying to develop recommendations
regarding the Rapid Oil site. The question is whether or not we
want to purchase the site rather than let Ashland Oil rezone it and
build a new Rapid Oil store.
Please note the attached report regarding soil contamination which
was prepared by Delta Environmental Consultants as a result of
investigation conducted in 1989, and the letter from David Fawcett
from the MPCA regarding amendments to the corrective actions that
are needed on the site. I have not had anyone evaluate the report
from Delta Environmental Consultants or the letter from the MPCA.
My question to both of you is whether we would benefit by having
a consultant of our own review the report from Delta Environmental
Consultants and the letter from the MPCA and answer the following
questions:
1. Can we determine from the Delta report, the letter from
the MPCA, and the information we already have, whether
this will be an expensive clean-up?
2. If it is an expensive clean-up, approximately how much
will it cost?
3. Based upon what is contained in the report from Delta
Engineering, is the contamination area a relatively small
contamination area that can be easily cleaned up?
4. What kind of expenses would a consultant see doing the
kind of remedial action suggested in the Delta
Engineering report and the MPCA letter?
II
i II
, ,
14-C
Memo to John G. Flora
and Chuck McKusick
March 4, 1991
Page Two
5. Are there other typical gas station clean-up projects?
If so, what are the costs for a typical gas station to
clean up from leakage of their fuel tanks.
My overall objective is to get a better assessment of the kind of
financial vulnerability we would buy into if we were to obtain
title to the property. Also if we condemn the property and proceed
to buy it, we would want to make sure that the cost of clean-up is
reflected in the condemnation price. Therefore, we would want to
go into a condemnation proceeding with some kind of idea of the
clean-up costs.
Thank you for looking at this with me. Please let me know whether
you have any ideas. Thank you.
WWB:rsc
15
07-Mar-91
RICE PLAZA 1991 RENT
JANUARY FEBRUARY MARCH TOTAL
NORGE VILLAGE 1,100.00 1,100.00 1,239.56 3,439.56
METZ BAKING 702.98 755.63 1,458.61
CHILDREN CHARM 445.02 445.00 890.02
HONG KONG KITCHEN 752.97 805.63 1,558.60
MY SISTER'S CLOSET 793.74 793.74
T'S HAIR PLUS 800.00 800.00
CINNAMON SKIN TAN 0.00
RAPIT PRINTING 897.14 889.00 1,786.14
TOTAL 3,453.09 5,589.02 1,684.56 10,726.67
YEAR TO DATE 9,042.11 10,726.67 10,726.67
16
111 / Community Development Department
I HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 7, 1991
TO: Housing and Redevelopment Authority
FICI4: William Burns, Executive Director of HRA
Barbara racy, C mmunity Development Director
SUBJECT: Various Meetings
Here is a summary of meetings that we have had in the last month regarding HRA
redevelopment sites or issues:
1. January 29, 1991 - We net with Roger Derrick of Derrick Companies, a real
estate developer, and Don Patton, a realtor from Realty Center, on behalf
of the Cottage Homesteads of America, Inc. The president of Cottage
Homesteads is Michael Saxton. His company is the original founder of the
"Cottage" concept. This company is not related to John Arkell's proposal;
however, the concept is generally the same. The concept is to provide one
story clusters of 3-4 units for the younger senior who is still mobile and
active. They inquired as to potential development sites within the
community. We advised them that the HRA is still in the planning process
for the University Avenue Gateway area and the area in the northeast corner
of Rice Creek Road and Central Avenue. We spoke to them regarding the
City's recent history regarding the Arkell application and advised them
it would be important to differentiate between this ocetpany and the Arkell
proposal. We provided them with basic information regarding these sites
but we have not heard from them since our meeting in January.
2. February 6, 1991 - We met with Arne Gregory, Vice President of SCA
Development, Ltd., a subsidiary of CanAmerican Corporation, and Laura
Pioske of Miller & Schroeder Financial, Inc., regarding the Village Green
housing complex. Gregory's company is one of three partners of the limited
partnership wing the ply. CanAmerican also is the management
company for the property. Apparently, one of the partners wants to sell
his portion of the partnership. Currently, the three partners are
negotiating the sale. Giwory's inquiry to the HRA was whether or not we
were interested in becoming one of the partners or participating in a
proposal that was put forth by Bob Boisclair in the simmer of 1990. We
asked that they keep us informed of the progress of their negotiations;
and when more information has become available, we will approach the HRA.
3. We have also been contacted by the Everest Company and Opus Corporation
regarding the status of the Lake Pointe site.
WB/BD:is
M-91-159
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17
Community Development Department
r---\ HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 7, 1991
TO: William Burns, City Manager
FROM: Barbara Dacy, Community Development Director
SUBJECT: LRT Preliminary Comments
The Anoka County Regional Rail Authority has asked the City to
provide them with informal comments regarding the proposed LRT
system in Fridley. Of importance to the HRA is that the proposed
park-and-ride sites do not directly affect identified redevelopment
project areas.
The park-and-ride sites are proposed at = ,e northeast corner of
53rd Avenue and the southeast corner of 57th Avenue along
University Avenue, as well as in the northeast corner of
Mississippi Street. The Mississippi Street LRT station issue was
resolved by Anoka County committing that it will be a walk-and-ride
and a kiss-and-ride so as to not affect the Fridley Town Square
Redevelopment project. Anoka County promised it will not acquire
single family homes in the area for a park-and-ride site. However,
at 53rd and 57th Avenues, Anoka County is proposing to acquire the
blocks bounded on the east by 4th Street, south of 57th, and north
of 53rd, and east of University Avenues.
If any of the commissioners have more s_ _ _fic questions regarding
the alignment, I would be happy to try and answer those questions
at or after the meeting. Reduced copies of the proposed plans are
not yet available.
BD/dn
M-91-158
a
a •
a
17-A
•
nEE1
Community Development Department
PLANNING DIVISION
City of Fridley
DATE: February 28, 1991
TO: William Burns, City Manager
FROM: Barbara Dacy, Community Development Director
Department Managers
SUBJECT: Preliminary LRT Comments for Environmental
Impact Statement and Preliminary Design Plan
On February 15, 1991, the Anoka County Regional Railroad Authority
transmitted to our office the preliminary design plans for the LRT
system in Fridley, as well as the schedule for review of the EIS
and the preliminary design plans. The ACRRA is requesting that we
submit "informal comments" in order to identify critical issues or
concerns that we may have regarding the proposed alignment. The
ACRRA noted that the "official" review and comment opportunity will
begin with the submission of the Environmental Impact Statement to
the cities on April 1, 1991.
Process
In order to respond to Anoka County's request for informal comments
as well as to initiate a process for an adequate review and comment
period by residents and businesses, we have developed a review
process to include staff members and the general public. The
attached comments have been developed by our Department Managers
reviewing the preliminary design plans. We have identified
recommended goals for each station area as well as pertinent
comments for physical planning issues along the alignment. After
the City Council reviews these initial comments on March 4, 1991,
it is intended that the Planning Commission will review these
comments on March 13, 1991. Due to budget cutbacks, ACRRA staff
is available for one neighborhood meeting instead of the originally
planned two. We have scheduled one meeting on March 19, 1991 to
meet with property owners immediately affected by the park-and-ride
sites at 53rd and 57th Avenues. These two station areas will
encounter the most amount of change. We also recommend that
another neighborhood meeting be conducted in April for all property
owners along the alignment.
As a result of the comments developed by staff, City Council,
commissions, and the neighborhood meetings, the City should have
4
17-B
LRT EIS
February 28, 1991
Page 2
a good basis to evaluate the draft Environmental Impact Statement
when it is submitted in April of 1991. We may find it necessary
to conduct follow-up meetings with the property owners later in
the spring or summer.
Plan Comments
Attached are goals and comments for each of the station areas that
are located along University Avenue. In analyzing each station
area, we have used a radius of 1/4 to 1/2 mile around the proposed
station site. We have also developed a list of questions that we
would like Anoka County to be prepared to address at neighborhood
or other public meetings (some of these questions may be addressed
in the EIS) .
Also, in reviewing the station area plans, we used the City Council
comments from their meeting on November 26, 1990 as a guide. The
plan sets we received are too large for reproduction. We will have
them available at Monday's meeting.
Recommendation
The City Council should review the attached goals and comments and
recommend any changes.
BD/dn
M-91-137
17-C
53RD AVENUE STATION AREA
Goals:
1. No change or intensification of existing development is
recommended, but there is a need for housing rehabilitation
in the area. A number of multiple family structures are
located in the area which need rehabilitation.
2. Pedestrian and bikeway/walkway access must be promoted from
single and multiple family properties on both sides of
University Avenue to the park-and-ride site. This includes
off-street sidewalks/bikeway/ walkways along 53rd Avenue, 49th
Avenue, and 44th Avenue. We need to finalize with Anoka
County and MTC the proposed east/west feeder bus transit
routes. Either a shuttle system or the feeder system should
provide connections to the industrial area along Main Street
and the Lake Pointe site on the other side, and the Target and
Menard's area on Highway 65. This system would serve about
850 - 1,500 employees.
3 . Evaluate development opportunity at Naegele site and the
vacant property adjacent to it.
4 . ACRRA should address the need for two station areas at 53rd
and 57th Avenues. Are both needed during initial construction
of the system or can one be constructed prior to the other.
17-D
53RD AVENUE PARK-AND-RIDE SITE COMMENTS
1. Two commercial properties are proposed to be removed; no
residential homes along 4th Street are proposed to be removed.
2. The plan apparently is assuming removal of the partial alley
that exists and reconfiguration of garages that are currently
located along the alley.
3. Two accesses are proposed on 4th Street. If possible, the
northern most access should be removed and connected to the
east bound I-694 ramp. If ramp access is not possible, the
southerly most access to 4th Street should be maintained.
Another alternative is to acquire the seven residential
properties along 4th Street as is proposed on 57th Avenue.
4 . Proposed screening should be consistent with zoning ordinance
requirements. A 6 foot fence with 1 tree per 50 feet along
common boundaries should be constructed to the rear of
residential properties. A 20 foot setback should be provided
along the public right-of-way of 4th Street, with a 3 foot
hedge or berm and 1 tree per 50 feet around perimeter of
parking lot exposed to public right-of-way. Lighting should
be a neighborhood size, less than 20 feet, high pressure
sodium, a shoe box, or Kimlite design. Interior landscaping
should also be provided. Parking spaces may be striped at 9
feet wide but with a double stripe.
5. Pedestrian and bikeway access to the neighborhood to the east
should be provided as well as coordination with the City of
Columbia Heights for a sidewalk along 53rd Avenue.
6. Requirements of the Six Cities Watershed District must be met.
7. Station buildings should be handicap accessible, provide bike
racks, adequate bathroom facilities, and a call box for 911.
I
17-E
57RD AVENUE STATION AREA
Goals:
1. The area north of 57th Avenue to 61st Avenue and on to 4th
Street has been identified as a potential redevelopment site
for housing or a mixed use project of housing and a commercial
node at the 57th Avenue intersection. The redevelopment would
be compatible with LRT as it would provide easy mass transit
access for those who desire it.
2. Feeder bus system needs to be further defined and should
include Holiday Plus, the industries along Main Street and the
Lake Pointe site, and the service/retail uses along 57th
Avenue on the west side of University Avenue.
3 . Pedestrian and bikeway access across University Avenue should
be provided.
57TH AVENUE PARK-AND-RIDE SITE COMMENTS
1. Six residential structures will be removed (need to confirm
# of units) plus two commercial properties.
2 . Same site plan comments as was identified on 53rd Avenue,
except that a screening fence will not be needed. A shorter
decorative fence may be appropriate along 4th Street.
3 . A driveway access to the frontage road in the extreme
southeast corner of the site should be considered, if an
access to I-694 ramp cannot be approved.
a
17-F
• MISSISSIPPI STREET STATION AREA
Goals:
1. Promote pedestrian connections across University Avenue.
Coordinate bikeway/walkway access into the northeast corner
if it is redeveloped.
2 . Address the fire and police access issues as defined below.
3 . Design elements of station need to be consistent with
University Avenue corridor design plans.
MISSISSIPPI STREET WALK-AND-RIDE SITE COMMENTS
1. Anoka County should provide the bikeway/walkway in addition
to the sidewalk located at the northeast corner.
2 . The frontage road must be retained in front of the Fire and
Police stations. The Police Department uses the emergency
access to University Avenue twice a day (730 times a year) .
The Fire Department uses that access also on a daily basis.
Plans indicate a discrepancy.
A. What is distance between front of station and relocated
frontage road?
B. What will frequency of trains be at this intersection?
C. What will the elevation of the tracks be? Will emergency
vehicles be able to drive over them easily?
D. Can the City pre-empt the LRT system as is done now in
opticom system?
E. What type of safety/warning sign apparatus can be
installed at emergency vehicle crossing?
3 . Do long-term plans include only 20 drop-off spaces along
Mississippi Street in the northeast quadrant?
4 . The design plans did not appear to show the improvements to
Mississippi Street which are proposed for 1991. Location of
the bus drop-off spaces should be located an adequate distance
from the intersection to not interfere with pedestrians and
bicyclists. Further, because a new shopping center will be
located in the northeast corner, the City will be monitoring
traffic operations on Mississippi Street. ACRRA should also
monitor traffic use to insure proper placement of bus drop-
off sites.
* J•
1
18
1 I/ Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 7, 1991
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Status of Kiffe's Automotive
Jack Kiffe from Kiffe's Automotive notified me that he wants to
sell his automotive business and vacate the building on Mississippi
Street. Kiffe is leasing the building from the HRA on a month-to-
month basis.
Kiffe has advertised his business for sale, and has received
initial inquiries. We advised him that the maximum amount of time
we would be able to lease the building to a new tenant is one year.
We would also charge the same amount of rent, which is $650.00.
We conferred with Jim Kordiak, our Property Manager for Rice Plaza,
regarding the lease amount per month. He advised us that it was
a reasonable rate, and given the condition of the building and the
change of access that will occur after the Mississippi Street
improvement project, the current lease rate is appropriate.
Kiffe has made his rental payments on time, and he has agreed to
provide us with a 30 day notice to vacate. If a new tenant is to
be located within the building, the lease will need to be presented
to the HRA for final action.
BD/dn
M-91-157