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HRA 12/12/1991 - 6381WILzAM eUIW EXEC QIIECTO2 O HRA CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, DECEMBER 12, 1991, 7:30 P.M. Location: City Council Chambers Fridley Municipal Center 6431 University Avenue N.E. CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: November 14 , 1991 ACTION ITEMS: CONSIDER AMENDMENT TO DAIRY QUEEN LEASE . . . . . . . . 1 - 1E CONSIDER PROPOSED AMENDMENT TO SECOND MORTGAGE FOR SPRINGBROOK APARTMENTS . . . . . . . . . . 2 - 2G c� CLAIMS AND EXPENSES . . . . . . . . . . . . . . . . . . 3 - 3B INFORMATION ITEMS: DISCUSSION OF TIF POLICIES . . . . . . . . . . . . . . . 4 - 4H STATUS REPORT ON HOUSING STUDY . . . . . . . . . . . . . 5 STATUS REPORT ON 1992 BUDGET PREPARATION. . . . . . . . 6 STATUS REPORT ON NORTHEAST QUADRANT . . . . . . . . . . 7 REPORT ON ECONOMIC DEVELOPMENT CONFERENCE . . . . . . . 8 - 8F STATUS REPORT ON WAL -MART DEVELOPMENT . . . . . . . . . 9 - 9A UPDATE ON RICE PLAZA. . . . . . . . . . . . . .10 - 10A OTHER BUSINESS ADJOURNMENT CITY OF FRIDLEY HOUSING i REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 14, 1991 CALL TO ORDER: Chairperson Commers called the November 14, 1991, Housing & Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, John Meyer, Duane Prairie Members Absent: Jim McFarland Others Present: William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Paul Hansen, Accountant Jim Casserly, Consultant Jim Hoeft, HRA Attorney Mark Rasmusson, McGlynn Bakeries Terrie Mau, Cinnamon Skin.Tanning Salon Chris Wallace APPROVAL OF OCTOBER 24 1991 HOUSING & REDEVELOPMENT AUTHORITY MINUTES• NOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the October 24, 1991, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 AND ESTABLISHING PROPOSED TAX INCREMENT FINANCE DISTRICT #12: Mr. Casserly stated that this is a draft Tax Increment Plan. There are some small changes that need to be incorporated into the Plan; however, the changes are relatively minor and are underlined. He reviewed the changes with the HRA. Mr. Casserly stated that this plan is very similar to plans adopted by the HRA in previous years. This plan fits into the total development program. A lot of the language in the plan is designed to meet statutory requirements, so some of the language is broader than what is being contemplated in this specific project. A tax increment plan outlines the powers the HRA has and will almost HOUSING is REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 2 always be broader than the specific project which allows the HRA some leeway in the event there are occurrences the HRA has not anticipated. The development agreement is the contract the HRA has with the developer for the project, and the development agreement lays out the very specific terms for a specific project. Mr. Casserly stated that this note is exactly like the note the HRA has on Lake Pointe. They only pay the note when the revenues are available, but when the revenues are not available in the first several years, that interest is accruing and being added to the principal. Mr. Commers stated his only concern is that the monies that are being contributed through the State Economic Recovery Fund is really a separate transaction, albeit coming to the HRA and the HRA forgiving those funds in terms of repayment. He did not understand why that should be included in the fund when they are talking about the total Bonded Indebtedness of $1,125,000 when it should really be $250,000 less than that. Mr. Casserly stated they did not actually change the total amount of Bonded Indebtedness from the numbers given to the HRA previously in the agenda. The reason for that is that the number they were using before was $800,000. They are not going to create any more bonded indebtedness, nor are they going to pay any more capitalized interest. All they are doing is meeting the statutory requirements of showing how the monies received would be expended. They could break that out better, because the public could perceive that the entire amount is coming from the HRA, and it is not. That is why he does not put specific numbers in some places. He is assuming it will come in at $250,000, but he does not see it being any more than that. The amounts put in the budget are all high. They always make the budgets higher than any number they would use in their development agreement. The reason for that is that if something doesn't take place for 3 -4 years and they have the effect of inflation, then they do not have to amend the budget in order to make certain expenditures. Mr. Commers stated there is probably no need to discuss that any further, but it does seem a little misleading to the general public. Mr. Casserly stated the existing building is in two school districts so they have to make assumptions on what the valuations are going to be in each school district when it is improved. This creates some technical problems. One of the parcels (owned by the City) is essentially a ponding area in the northwest corner adjacent to the railroad tracks, and that parcel is not in the tax increment district. The reason'it is included in the project area is because they will probably have expenditures in that parcel that the City owns. In order to allow the HRA to make expenditures, it ROUSING i REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 3 has to be included in the project area. That is why the project area is slightly larger than the tax increment district. Ms. Dacy stated this stormwater pond collects a lot of the runoff from the general area. When this pond is at capacity, the water flows back into the Totino lot. Mr. Flora, Public Works Director, is evaluating the construction of a storm sewer connection from the rear of the property into*an existing storm sewer over to the west and then directed down to the south. Mr. Commers asked why this ponding area is not included in the tax increment district and pay for it off increment, rather than having it separated out. Mr. Casserly stated they can spend money as long as the parcels are included in the project area. Mr. Casserly stated that if the Tax Increment Plan is acceptable to the HRA as amended, by approving the resolution, they are recommending that the Council create the tax increment district, approve the plan, and amend the development program and the existing districts. Mr. Commers asked Mr. Rasmusson to give a general summary of McGlynn's plans. Mr. Mark Rasmusson stated that on behalf of the McGlynn family, he would like to say how excited they are about coming to Fridley. They appreciate the accommodations the HRA, City Council, and Planning Commission are making to help them with their project; and they are proud to become a part of the Fridley community. He also wanted to compliment the professionalism of the City staff, who represent the type of city that McGlynn wants to be a part of. Mr. Rasmusson stated McGlynn Bakeries has been a very fast growing business over the last few years. They have gone from $60 million in sales four years ago to $180 million in sales this December 1991. They are the largest croissant manufacturer in the United States. Because they are growing so fast, plants change rapidly. They currently have two production facilities in Minnesota, one in Eden Prairie (15 years) and one in Chanhassen (2 years). Basically two production facilities share one building in Eden Prairie: the retail division and the frozen products division. The frozen products division is growing more rapidly than the retail division. The Chanhassen facility supports the frozen division. Mr. Rasmusson stated that because they anticipated running into more capacity problems at Eden Prairie last spring, they started looking at expansion possibilities. One was a bandaid, stop -gap, measure in Eden Prairie where they would buy the warehouse they currently lease and use it for a variety of purposes. Because it is a warehouse and not a food processing plant, it would be cost HOUSING i REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 4 prohibitive to turn it into a full fledged bakery. They began exploring going out of state, particularly southeast, perhaps North Carolina. Before they got too far into that, the Totino's plant became the focus of their attention. Mr. Rasmusson stated the great thing about the Totino's plant is that it is a good food plant, and. the basic structure is sound. It will cost about $4.8 million to rehab it before they can put their own equipment into it. The plant was also attractive because of the distribution issues and business climate issues. They plan to move into the plant by the fall of 1992. This will be real boon for their retail division, because it has been at capacity for about 5 years. Now with a new refurbished plant, they can start looking at other business opportunities with their retail division. Again, they are really excited about coming to Fridley and the opportunity this plant is going to have for them to invest in new opportunities for the retail division. Mr. Commers asked Mr. Rasmusson to talk about the number of employees that will be coming to Fridley and what they plan to do with the plant in Eden Prairie. Mr. Commers stated that, over time, they will be taking out most of the retail plant production equipment from Eden Prairie and moving it to Fridley. The bulk of it will be moved by the fall of 1992. As far as employees, they have not yet surveyed their employees as to who would like to make the move to Fridley. They are looking at approximately 200 employees moving to Fridley initially. That initial phase would include retail production, retail divisional offices, big stock division (internal supply division), and a bakery outlet store. Most of those employees will be current McGlynn employees; however, there will be the opportunity for a lot of new hires, because of future growth plus about a 30% turnover that they have experienced in the last three years. Mr. Prairie asked Mr. Rasmussen about the employee capacity at the Fridley plant. Mr. Rasmusson stated he believed they can be here 25 -30 years and not run out of space. They may be at 80% capacity once they get everything moved in. That would be approximately 250 -300 employees. The next step after that is to move the big stock or supply division to a nearby warehouse. That would increase their floor space for production by about 40 %. They don't anticipate any more parking spaces than are on the site right now, but they are buying an additional acre from Pillsbury and working a lot split so they have an additional acre for future parking and which would also allow an approximately 20,000- 25,000 sq. ft. addition on the north side of the building. A ROUSING % REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 5 Mr. Commers stated the HRA is also happy that McGlynn Bakeries is coming to Fridley, and they hope they are here for a long, long time. NOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve Resolution No. 6 - 1991, "A Resolution Modifying the Redevelopment Plan for Redevelopment. Project No. 1 to Reflect Increased Geographic Area and Increased Project Costs within Redevelopment Project No. 1 and Modifying the Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. it to Reflect Increased Project Costs within Redevelopment Project. No. 1 and Establishing Proposed Tax Increment Financing District No. 12 and Approving and Adopting the Proposed Tax Increment Financing Plan Relating Thereto ", as amended. UPON A VOICE VOTE, COMMERS, SCHNABEL, PRAIRIE VOTING AYE, MEYER ABSTAINING, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED. 2. CLAIMS AND EXPENSES: a. Check Register (2172 -2178) MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the check register dated November 7, 1991. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. APPROVAL OF 1992 MEETING DATES: Mr. Commers stated the dates as proposed are the second Thursday of each month at 7:30 p.m. NOTION by Mr. Prairie, seconded by Ms. Schnabel, to approve the 1992 meeting dates as follows: January 9 February 13 March 12 April 9 May 14 June 11 July 9 August 13 September 10 October 8 November 12 December 10 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. UPDATE ON RICE PLAZA: Mr. Commers stated this is an update on the Rice Plaza rents and is for informational purposes only. 5. TE,_NANT_ that the HRA evict esting perhaps Mr. Burns stated that Mr. Rordiak is sugg and p tea he negotiated an agreement with Ms. Terrie Mau of Cinnamo eSsta Tan and seize the equipment a agreement. Now seek legal action. H to the g want Mau in May 19911 but she has not lived up up to the HRA to decide what source of enforcement they it is to pursue. rs asked Ms. Mau to tell the HRA what has been happening- Mr. Comme to speak to the HRA Ms. Mau stated she appreciated the opportunity She stated it is now time to p lead her own case so the HRA can understand her situation. She stated her business is not only her livelihood, but is a goal she has had for some time. Ms. Mau stated that when she purchased the business, she purchased 'th; but that obviously that was not the intention of it in good faith; That led to the the person she purchased the business from. the former owner opened a business across the situation ees. The main source of income street from her and took her employ and losing to for in her business is th d ffi ul stylists for her k business ►. In trying income made it very she consolidated into one location as figure out what to hat time, a large sum of rent had already gone opposed to two. BY into arrears. good faith at since that time, she made a g into Ms. Mau stated the HRA with the idea that a eincreased her moving agreement with therefore, would have hiring stylists. a new location and, ortunity to a new substantially because of a better oPP This hasn't happened, and she will not be relocating development. _ of redevelopment of the Rice 't difficult for her to hire stylists because of the Ms. Mau stated that the uncertainty the only Plaza makes i In her particular business, uncertainty of the building- clientele. She can't build a `„gay to survive is to build a for a year. ot be and take the chance that she wl uncertainty in location clientele have lived with this in six months. They erson who leases part ht in another P person who does body Ms. Mau stated she has brought ht in another p she cannot of her space. She has also a t uof her space. However, in wrapping who also leases part needs to be able to expand small amounts' survive r to increase that profit margin. margin- order this go on intention of not letting a situation Ms. Mau stated she has every how to rectify roblems she forever, but she cannot t etting an better given the p articular site. She did work out an agreement with that she does not foresee g has at this p OUSING & REDEVELOPMENT AIITHORITY MEETING. NOV. 14. 1991 - PAGE 7 Mr. Burns in May 1991 that she thought she could handle. The reason she had to come to Mr. Burns was because she could not get an agreement with Jim Kordiak. This is a problem, not only for herself, but with other tenants in this building. She realized the HRA hired Jim Kordiak to manage this property with the very best of intentions, but it is very disconcerting for her and other tenants to see tenants leaving the building because they cannot come to agreements or work out problems with Mr. Kordiak. One thing that has troubled them is the fact that all but one of the businesses are owned by women. They feel they are not being treated fairly by Mr. Kordiak. Ms. Mau stated the tenants are having a difficult time in this building. The rents they were paying when that building was purchased by the City were probably adequate at that time for that particular situation. Now, the rents are far too high for the problems they are being faced with on a day -to -day basis. The general feeling of the public is that this building is coming down and why start doing business there. This presents a problem for the tenants and for herself especially because her business is very service- oriented. With more and more tenants moving out of this building, it makes it even more difficult to bring in new business. Rapid Printing will be leaving the first of the year. Metz Bakery is leaving this month. She cannot survive if the building does not survive. Ms. Mau stated that for these reasons, she decided to come before the HRA to see if some kind of arrangement can be made for that building. She stated she is doing the best she can, but it is up to the HRA to decide how they want to handle the whole situation. Mr. Commers asked if Ms. Mau had any suggestions for the HRA to consider. Ms. Mau stated she would like the opportunity to manage the property, because she believes the building needs an on -site manager. She is there every day and is accessible to the other tenants. She does almost all the snow shoveling now for the building because she is there and because she is the only one who has access to leave her business during the day when it is snowing. Ms. Mau stated she has never managed a building before. She stated she believes she manages her business well. She is a single parent raising a daughter alone. She handles her finances well, but she cannot handle finances that do not exist, and she cannot handle a situation where there appears to be no solution. Her business is not failing. Considering what she has been up against for the last year, her business is doing well. It has been a very difficult year for her. Ms. Schnabel stated she finds it difficult to understand why Ms. Mau has not been making some attempt to make some type of payments. HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 8 Ms. Mau stated her main reason for not paying is that if she cannot pay all of it, it might as well not be any. Ms. Schnabel asked if Ms. Mau has any solution in terms of the debt. Ms. Mau stated that if the HRA would settle the debt 50 cents on the dollar, she would find the means to pay the debt now. Then she would like the HRA to lower her rent, because the high rent is a problem and does not give her the opportunity to grow. She stated she would like to stay in the building so it does not become an empty building. Ms. Schnabel stated it might be difficult for the HRA to negotiate a reduced rent for Ms. Mau, as it would set a precedent for other tenants in the building to have their rent reduced. Ms. Mau stated her rent is among the highest rents. She believed almost all the other tenants who want to stay in this building feel their rents should be reduced. Mr. Meyer asked how Ms. Mau felt her replacing Jim Kordiak would improve her situation. Ms. Mau stated she did not know whether or not her business would improve, but she does care more about this particular site. She cares that the building is occupied because she has a vested interest in the building. She believed the other tenants will feel more secure if the property manager is on site. Mr.' Commers stated they have heard Ms. Mau's background and information. He stated the HRA should take this information under consideration and staff can let Ms. Mau know of any decisions they make. Ms. Mau thanked the HRA for their time and consideration. Mr. Hoeft stated that with respect to Mr. Kordiak's letter in which he suggests seizing the property, he wanted the HRA to know that they are not first in line on the security interest in the property. Northeast State Bank has an interest; therefore, if the HRA wanted the tanning beds or other equipment, the HRA would have to pay off the value of that equipment to Northeast State Bank. Mr. Commers stated what concerns him the most is what is going on with the building as a whole. They are losing tenants. They recently lost two tenants, and now it sounds like two more tenants are leaving, one of which is a major tenant. He wanted to know what is causing the tenants to leave. Ms. Schnabel asked who is setting the rental guidelines. ROUSING & REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 9 Mr. Burns stated he believed they have periodically renegotiated the rents, and basically it is what their leasing agent feels the space can be rented for. He believed some of the renegotiations have taken into consideration the situation the building is in, and there have been some substantial reduction of rents for different tenants with his consent. Mr. Commers stated that if they are losing tenants, then they have to get the rents to the point where they can attract new tenants. Mr. Burns stated there are also some substantial repair costs to a number of tenant spaces. It will cost about $10,000 to renovate the tenant space that Norge Village recently vacated. Mr. Commers suggested authorizing staff to look at the leases and the rents, and then check around to see what rents are being charged in other shopping centers in the area, such as Moon Plaza. They also need to know what condition the tenant spaces are in. They need a comprehensive, total analysis of the total situation so they can put together some plan to rescue or rehabilitate this building. The HRA members agreed. Mr. Burns stated they should also have Mr. Kordiak respond to the issues raised by Ms. Mau. Ms. Schnabel suggested they talk to the rental manager for Moon Plaza about the possibility of being a rental manager for both shopping centers. 6. OTHER BUSINESS: a. Fridley Dairy Queen Mr. Hoeft stated he received some paperwork from Mr. Fitch's attorney, and Mr. Fitch's attorney has made a motion to the court which is scheduled for the following Wednesday, November 21. They are asking for two things in the motion. One is that the time period for which to have the Commissioners report back to the court be extended. That has been done informally, and he indicated to Mr. Fitch's attorney that the Hearing was rescheduled for the latter half of January. So, that issue has been resolved. The other thing is they are requesting that the court release the $125,000 that was placed on deposit in District Court based upon the approved valuation at the start of the quick -take proceedings. Mr. Hoeft stated he indicated to Mr. Fitch's attorney that he would have to discuss this with the HRA; but in his consideration of the situation, they had two options when they HOUSING & REDEVELOPMENT_ AUTHORITY MEETING, NOV. 14, 1991 - PAGE 10 began the process: (1) to pay the $125,000 directly to Mr. Fitch, or (2) to deposit it with the court which places it in an interest bearing account and the petitioner can petition to have it removed. Mr. Hoeft stated the HRA chose to deposit it with the court. It was his recommendation that the HRA not oppose the motion for Mr. Fitch to withdraw the money from the District Court, the situation being that if the settlement figure or the Commissioners' award gets determined is in excess of the $125,000, then obviously the City pays the difference. If it is less than the $125,000, then that would have to be refunded to the City. The area of concern comes if it is less than $125,000. From the numbers that have been talked about with the HRA Is appraiser regarding property value and relocation assistance, he did not believe the award will be less than the $125,000; and, therefore, he did not believe the HRA runs the risk of trying to recover funds back from Mr. Fitch after it has been released back from the District Court. What argument do they have to ask the District Court to hold on to the $125,000? Ms. Dacy stated Mr. Fitch still has not signed the lease. She suggested that they ask the Court to hold on to the $125,000 until the lease is signed and the rent paid to the HRA. Mr. Commers stated another argument to use is that they do not know what Mr. Fitch's appraisal is going to be. It could be lower than the City's. It was the consensus of the HRA that the $125,000 not be released until Mr. Fitch signs a lease with the HRA, pays the rent due since July 1991, and submits a copy of his appraisal. b. Target Parking Ms. Dacy stated that at the last meeting, the HRA asked the question of what was the mechanism that the Target Northern Operations Center used to pay rental payments on parking. Ms. Dacy stated Rick Pribyl researched this and said that Target purchased a U. S. Treasury Bond in the name of the City of Fridley, and the interest payments on that on an annual basis represent the payments in lieu of rental payments on the parking lot. C. Second Mortgage on Shorewood Ms. Dacy stated that in answer to a question raised by the HRA, payments on that began as of October 30, 1990, and Shorewood did make the first payment. The second payment for the second year was due October 30, 1991, and Shorewood have not make that payment. Mr. Pribyl has been in contact with HOUSING i REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 11 the owners of Shorewood. There is also a 5% penalty charge for late payment. d. Municipal Liquor Store Mr. Commers asked what the rental situation is with the liquor store. Mr. Burns stated the City pays the HRA approximately $22,000 per year to rent the liquor store. Mr. Commers asked staff to look at the lease the HRA has with the City for the liquor store to find out what the terms are and the amount of the lease. ADJOURNMENT: Chairperson Commers declared the November 14, 1991, Housing and Redevelopment Authority adjourned at 10:05 p.m. Respectfully sub 'tted, Lynh# Saba Recording Secretary Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 6, 1991 TO: William Burns, Executive Director of the "HRA FROM: Barbara Dacy., Community Development Director SUBJECT: Consider Amendment to Lease Agreement with Dairy Queen Don.Fitch, owner of the Dairy Queen, has requested an additional amendment to the lease agreement approved by the HRA on September 12, 1991. The proposed amendment to the lease concerns item #8 regarding the work which needs to be done by the HRA to revise the drive - through traffic as a result of the Mississippi Street improvement project. During the negotiations for the property acquisition, staff indicated that because the HRA would own the property, it would be responsible for changes to the operation of the drive - through as a result of the Mississippi Street improvement project. The drive - through revisions are necessary because a median will be constructed across the intersection of the frontage road and also the eastern -most driveway into Rice Plaza will be closed. Therefore, traffic using the Dairy Queen drive - through would not be able to go westbound on Mississippi Street because of the median at the frontage road intersection. The proposed plan to handle this alteration was discussed in late 1990 with Don Fitch when the HRA authorized the acquisition process. The revision entails moving the accessory buildings at the rear of the property, reducing the grade between the Dairy Queen and Rice Plaza, and creating a paved driveway to the rear of Rice Plaza to the newly constructed 3rd Street. Also, the entrance to the drive - through would change from the frontage road to entry from the Rice Plaza property. I met with Don Fitch and reviewed the proposed alterations in detail. Fitch indicated that if the Mississippi Street improvements are not completed by July 1, 1992, he stated that he would not need the drive - through adjustments to be made. He stated that he hopes to be in a new location at the termination of the lease in November 1992. The HRA may want to consider doing the improvements anyway if it intends to re -lease the building prior to a redevelopment project occurring on the site. A 1 -A Consider Amendment to Lease Agreement with Dairy Queen December 6, 1991 Page 2 Fitch stated that he would be responsible for relocating the order board, realigning the entrance into the drive - through from the Rice Plaza property (including timbers and rock), and he also volunteered to move the dumpster, fence, and barn, leaving the HRA responsible for the pavement adjustment at the rear of the property and the pavement along the rear of Rice Plaza. Fitch indicated that he would need directional signs at the 3rd Street entrance at Mississippi Street, and he would be willing to pay for installation and operation of the signs. Maximum costs of the pavement is estimated to be about $5,000. It may be less depending on how much of the existing pavement to the rear of Rice Plaza can be utilized. Recent information from Anoka County is that they are still intending to construct the project for 1992. They are proposing a March contract let which would mean April or May construction. The proposed revision suggested by Fitch is as follows: 8. The lessor shall make any necessary alterations to the said property in the manner necessary for the lessee to operate and conduct his drive - through business. Jim Hoeft is now reviewing the proposed language and will be prepared for suggested language to the lease at Thursday's meeting. Recommendation Pending the appropriate language to be developed by the Attorney's office, staff believes that the proposed drive - through realignment is necessary for operation of the property and that the HRA should agree to the proposed amendment. NOTE: Fitch is current with rental payments (see attached). BD:ls M -91 -875 MO �Q w �- W H N i i CLg V) (A I / J r - -1 LZJ L-- - -J--L _Fr—]g r 1 -B '` II I lb - II II II II I I I I I I I / �I • � I / I / — c1� ll m in in I W II I o� l J N II \\ I \ � 1 1 L �) L7) r .J l ci d Z T m � sZ R } W b � N N �M U) • 612 780 1777 FROM BARNA 6UZY LAW MPLS. 8.30.1991 13:30 P. 5 1.0 executed certificates of insurance shall be delivered to Lessor prior to the commencement of Lessee's occupancy hereunder and renewals thereof shall be delivered to Lessor at least thirty (30) days prior to expiration of the respective policy terms. B. The Lessee consents to allow the Lessor to make any necessary alterations to the said property in.the manner necessary for the Lessee to operate and eonductj(his drive - through business. 9. Lessee covenants and agrees that he will make no structural change or major alteration without the Lessor's consent, which consent shall not be unreasonably withheld, provided that the proposed improvements are consistent with the use of the property, do not significantly reduce the value of the property and do not violate any local, state or Federal laws, and without first furnishing the Lessor with five (5) days advance written notice outlining the proposed changes or alterations. upon the city consenting to the alterations, then the City will issue all necessary permits without unreasonable delay. The Lessee further covenants that it will promptly pay for any alterations, repairs or maintenance made to the demised property so that no mechanic's liens will be filed against the property. In the event a mechanic's lien is filed, the Lessee shall have twenty (20) days to pay or in the alternative to post 1 -1/2 times the lien amount with the district court in order to contest it. Failure to do either of the above mentioned lien corrections shall be deemed as a default under this Lease. In any event, the ROBERT A. GUZY BERNARD E. STEFFEN RICHARD A. MERRILL ROBERT C. HYNES RICHARD A. BEENS RONALD B. PETERSON DARRELL A. JENSE ' JEFFREY S. JOHNSON RUSSELL H. CROWDER JON P. ERICKSON LAWRENCE R. JOHNSON DAVID A. COSSI THOMAS P.MALONE MICHAEL F. HURLEY VIRGIL C. HERRICK HERMAN L TALLE December 3, 1991 Oliver Erickson 3231 Central Avenue Northeast Columbia Heights, MN 55421 RE: The Housing and Redevelopment Authority of the City of Fridley, Minnesota vs. Ernest L., Muriel R., Donald A. and Judith A. Fitch Dear Mr. Erickson: Pursuant to the telephone conversation of today wherein you advised me that you would be out of town from January 28, 1992 through the entire month of February of 1992 and then from March 10, 1992 through April 1, 1992, I have rescheduled the Commissioners Hearing regarding the above matter to January 27, 1992 at 8:30 A.M. at the Fridley City Hall in the Council Chambers located at 6431 University Avenue Northeast, Fridley, MN 55432. sincerely, James D. Hoeft JDH:jjh cc: Bradley J. Martinson cc: Barbara Dacy /City Planning Coordinator cc: Dennis E. Taylor cc: Albert Rordiak cc: Harvey Peterson cc: Roberta /City Manager's Office Columbia Heights Office Anoka Office 3989 Central Avenue NE Anoka Professional Building Minneapolis, MN 55421 403 Jackson Street (612) 788-1644 Anoka. MN 55303 (612) 427 -6300 1 -D SHARON L HALL THOMAS L DONOVAN G S PAMELA M. HARRIS CHARLES M.SEYKORA WILLIAM Ni. HANSEN T JOAN Bama, Guzy & Steffen, Ltd. DANIEL D. GANTER, JR. DANIEL D. GANTE BEVERLY K. DODGE ATTORNEYS AT LAW GREGG v. HERRICK 400 Northtown Financial Plaza HOEFT JAMES JOAN M. . QUADE ADE 200 Coon Rapids Boulevard SCOTT M. LEPAK Minneapolis, MN 55433 STEVEN L MACKEY OF COUNSEL PETER BARNA (612) 780 -8500 FAX (612) 780 -1777 LAWRENCE M. NAWROCKI PATENT, COPYRIGHT AND TRADEMARK LAW Oliver Erickson 3231 Central Avenue Northeast Columbia Heights, MN 55421 RE: The Housing and Redevelopment Authority of the City of Fridley, Minnesota vs. Ernest L., Muriel R., Donald A. and Judith A. Fitch Dear Mr. Erickson: Pursuant to the telephone conversation of today wherein you advised me that you would be out of town from January 28, 1992 through the entire month of February of 1992 and then from March 10, 1992 through April 1, 1992, I have rescheduled the Commissioners Hearing regarding the above matter to January 27, 1992 at 8:30 A.M. at the Fridley City Hall in the Council Chambers located at 6431 University Avenue Northeast, Fridley, MN 55432. sincerely, James D. Hoeft JDH:jjh cc: Bradley J. Martinson cc: Barbara Dacy /City Planning Coordinator cc: Dennis E. Taylor cc: Albert Rordiak cc: Harvey Peterson cc: Roberta /City Manager's Office Columbia Heights Office Anoka Office 3989 Central Avenue NE Anoka Professional Building Minneapolis, MN 55421 403 Jackson Street (612) 788-1644 Anoka. MN 55303 (612) 427 -6300 .iI PIJ Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: November 21, 1991 TO: Paul Hansen, Accountant FROM: Barbara Dacy, Community Development Director SUBJECT: Dairy Queen Lease Payment I received payment today from Don Fitch as follows: 1. Lease Agreement - $500 /month when operating 2. Date of Lease Agreement is July.25, 1991. 3. .$500 /month divided by 31 days = $16.20 4. Seven days in July at $16.20 = $113.40 28 days in October at $16.20 = $453.60 Two full months, Aug. & Sept. at $500 each = $1,000.00 5. Total equals $1,567.00 6. Please receipt check and return receipt to: Don Fitch 8360 Sunnyside Road Moundsview, MN 55112 BD:ls cc: William Burns M -91 -846 1 -E I _ Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 6,- 1991 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Discussion of TIF Policies Background The City Council asked staff to prepare TIF policies prior to proposing additional modifications to the redevelopment plan and creation of tax increment districts. Attached is the information that was presented to the City Council at its conference meeting on November 25, 1991. I would like to make the same presentation to the HRA as was given to the City Council. In general, the City Council concurred with the proposed policies but wanted additional information and adjustments as follows: 1. Councilmember Billings suggested that we evaluate projections from potential projects before considering a percent cap on captured tax capacity from tax increment districts. 2. Councilmember Jorgenson requested information from other cities regarding total percent of total captured tax capacity. 3. Councilmember Billings wanted to clarify the policy regarding local government aid. He suggested that the City state the policy as: "City funds should not suffer as a result of HRA funding for a project." The Council will discuss the above follow -up information at its Council conference meeting on January 13, 1992. The HRA should discuss the proposed policies and provide additional direction in order to review that with the Council at its January 13, 1992, meeting. BD: Is M -91 -877 2 Community Development Department D HOUSING AND REDEVELOPMENT AvTHORrry City of Fridley DATE: November 2b,*1991 TO: William Burns, City Manager, FROM: Barbara Dacy, Community Development Director SUBJECT: Proposed Tax Increment Financing Policies Discussion of TIF policies should be discussed by the City Council in the following order: 1. Definition of terms 2. Discussion of General Guidelines 3. Chart entitled "Developer Assistance" and "HRA Redevelopment Costs I. Definitions. For the purposes of the Council's discussion, it is critical that all participants are using the same definition for key terms. These are as follows: A. Cost versus a subsidy 1. Cost is the amount of money needed to acquire land, prepare the site, or construct public improvements. 2. A subsidy is the amount of assistance to a developer that allows the.developer to acquire the site below its fair market value. B. Redevelopment versus Economic Development 1. Redevelopment usually. refers to improved and /or blighted properties. 2. Economic development usually refers to unimproved properties. C. "But -For Test" 1. Where does it come from? M.S. 469.175, Subd. 3(2) 4 -A y Proposed Tax Increment Financing Policies November 20, 1991 Page 2 2. The "But -For Test" is as follows: "That the proposed development or redevelopment in the opinion of the municipality would not reasonably be expected to occur solely through private.investment within the seasonable foreseeable future and therefore the use of tax increment financing is deemed necessary." D. Eligible Expenses 1. Land acquisition 2. Site work including demolition /site clearance, grading/ back - filling /compaction of fill, erosion control, and paving; include costs of base construction up to laying of asphalt 3. Utility hook -up 4. Traffic control lights /signs 5. Relocation 6. Landscaping on public right -of -ways 7. Public right -of -way costs including lighting, signage, driveway aprons, curbs, sidewalks, and boulevards 8. Interest cost during construction period of eligible expenses 9. Administrative costs including supervision, contractors fees, inspection fees, and overhead 10. Consultant's fees including architectural /design, engineering, financial consulting, and legal /bond counsel 11. City assessments, including sanitary sewer, storm sewer, streets, and any costs listed above that are assessable 12. Contingency 13. Interest rate buy -down for housing only E. Project Costs are the cost of land, building, and equipment that are incurred within the first year from the start of project construction. 4 -B 4 -C e Proposed Tax Increment Financing Policies November 20, 1991 Page 3 II. General Guidelines. To follow is a draft list of general guidelines which we believe address key points discussed by the City Council and the HRA. These guidelines, in conjunction with the chart in the following section, will help guide the community'in achieving its redevelopment goals. A. TIF policies are not goals, but are guidelines only. B. The subsidy should be proportional to the size of the project. C. Every district should be self- supporting; however, in certain areas the HRA's redevelopment costs may greatly exceed the value of tax increment revenues generated in projects that fulfill redevelopment goals (i.e. housing rehabilitation projects or redevelopment from commercial to residential). D. The City should not incur any losses as a result of the HRA assisting a project. E. Any developer /user must justify the requested assistance ( "But -For Test "). F. Whenever possible, the HRA should recapture its subsidy from the project. G. The captured tax capacity shall not exceed 150 of the total tax capacity. H. Pooling of TIF revenues is desirable as a means of accomplishing difficult redevelopment goals (i.e. housing rehab). I. Wherever possible, the amount of TIF assistance for a project should be limited through the use of alternative financial incentives e.g. SBA 504 financing, industrial revenue bonds, or economic recovery fund grants. J. The amount of TIF given to any project must be related to the contribution of the project to the City's redevelopment goals including creation and retention of jobs, enhancing the tax base, preserving the decline of tax values, eliminating blight and deteriorated properties, or meeting affordable housing /other housing objectives. K. Developers and users should demonstrate the financial feasibility of the project. 4 -D Proposed Tax Increment Financing Policies November 20, 1991 Page 4 III. Attached is a matrix identifying maximum percentages of project cost to be considered for economic development districts and redevelopment districts. The HRA has adopted an application process for submission of sources and uses statements, proformas, and an application fee. If the project meets the goals of the redevelopment program, the HRA can utilize either a grant, loan, or pay -as- you -go grant to assist the project. IV: The Chart entitled "Redevelopment Costs" identifies a guideline for the City to use in determining the maximum amount of redevelopment costs to be incurred for industrial, commercial /office, or housing projects. Reference general guidelines C and H. There may be cases where districts will need to use increment from other districts. Where this happens, we suggest a maximum cap of 125% for industrial and commercial /office redevelopment projects and 150% for housing redevelopment projects. BD: 1S M -91 -843 0 H N CCl N a w a W W W D w 0 H z 0 0 �d H X R 4J 04 0 r-I AN W 'd N a G a� a O N N Q U -rl 1~ O C O U W O I O N N O iJ V N ?1O C Q I ro b to U) 0 too 1 b a 4, w to in W H O O ` U $4 4J d* ov ew N in Ln Ln qj C H ck* ov de Ln in Ln O w IN. a1 $4 W e1P off° W O in In In H O U r-I ca •rl V dP de d° N Ln U'1 in � r-I H ' O I O N N O iJ V N ?1O C Q I ro b to too 1 b a N N O U V U tV O 14 a O r-I a w ed N C1 iT b O d U f'a N 04 ri ri W H O z 4 -E W H to O U E z w a W O a r ON C -rl m O x N U w w O as U O U r-I 0 .A 14 N .O H b $4 .4 U IV O 4� d r.OA o bQ�d d1 b -r1 NG m m O m N V V CKO $4 A m o U NOIn9 Q U 4-4 -H b � O AOtkd O � N m to V r-I ro0ro U -(a «i > �0roG N N 0 pi N O V ;J 0 $4 ANtnU N O N is Q Uri N W .mCU(0 O 4 O b A .� ro0co 4) ro -r4�> �Aml~ O N W N N O U m V iJ AO $4 A N Un U d O N !~ Q U W4 -r♦ 4 -F 4 -G � N 0 0 RC-1100 � zz z°z .>. . Zz z° z z z z z M It m m m m CD im 02 bg LL V VU CjUC>U CSC) V c3 • • �i 8 m m m U _ � N O i O 0< < m O m m U U O U � O 4c .. s � O • L UN < W c LS Q W>- j •' C ca 1 F � � CD � � W � � Os � r t W m c $ Oj La r N W 2 2 m U ts t a S c c s 8� €o g ;.. Oc m J� =E 6.S v W 8 EE En 1; g C < S 8 24 E IL m Q U o 2 m Y. LU E E VO OE �� ►c o 0E gE <E z0 —$ O$ la _E �UV W$ $ co sE gm �m o �• o �a �aEo a UQ �Q z� ''�' is m V- z r N N V 1 City of Fridley Redevelopment Areas and Tax Increment Districts r gg F DIE leTI LA 'hl li F Parcels within Tax Increment Districts 7-nL TF, Redevelopment Area Number 1 4-H 5 Community Development Department D HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 6, 1991 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director BIIBJECT: Status Report on Housing Study On Tuesday, November 26, 1991, ve received the draft copy of Maxfield Research Group's housing study. The study is 145 pages long and contains an exorbitant amount of information. At the current time, the Community Development Department staff is reviewing the study thoroughly and developing a list of comments to give to the consultant prior to the final draft being distributed to the HRA. The final draft will be prepared for presentation at the HRA meeting on January 9, 1991, and possibly for the City Council at its January 13, 1991, Council conference meeting. BD: Is M -91 -878 U r � Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 6, 1991 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Status Report on 1992 Budget Preparation I am currently in the process of preparing a draft 1992 budget for consideration by the HRA. Unfortunately, the work needed to be completed on the TIF policies and other HRA matters has prevented me from reviewing a proposed draft budget with you. A draft budget will be prepared for the January agenda. BD:ls M -91 -879 a° 0 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley UM: November 25, 1991 20: William Burns, Executive Director of BRA � r 'rl PK M: Barbara De y, Community Develcpment Director BOBMr: DevelgMent Interest in Northeast Quadrant Over the past several weeks, I have received a number of telephav calls from at least three separate parties regarding development of the northeast quadrant of University Avenue and Mississippi Street. The three parties, from what I can discern, include Lowell Wagner of Lowell Wagner Corporation, Doan Fite, and another unidentified company (a party has just asked general questions and wanted copies from our zoning files) . Norma Swanson, the owner of the 10, 000 Auto Parts property has also cmtacted me verifying that Scott Ericson's agreements with her have expired and that she has been receiving calls from these parties also. She indicated that she wanted to cooperate with the City. On November 19, 1991, I met with Lowell Wagner and Jim Hanson, a broker. Apparently, Wagner and Hanson worked with Walgreens for the facility in Coon Rapids Square. Wagner indicated that he approached Swanson for this same site five years ago. His proposal is to renovate the priding building, possibly acquiring the house on Mississippi Street, and leaving the lots on the south side of 67th Avenue vacant until possible expansion would occur to the existing building. He was inquiring as to the City's pr Ei g arr]i g the redevelopment of this site. I advised him that the City Council and the BRA have not discussed any other alternatives to the site; however, the Community Development Department staff would reoommend ma ' a i r, i *g major elements of the Ericson redevelopment plan. Most important is the location of the proposed driveway entrance, meaning that the house on Mississippi Street should be acquired. Secondly, the traffic impacts of a proposed use need to be evaluated. Thirdly, the proposed relationship to the neighborhood is very important, as well as maximizing the amount of tax base and adding to the Center City Redevelopment Area. I advised him that the Community Development Dgmrbment staff would not reooa<nen I renovating the existing building until all other options have been thoroughly explored and pursued. I advised him that Ericson was evaluating reducing the size of the develiopment, but keeping the overall points I mentioned above intact. At minimum, I advised him to include aap i siticn► of the Mississippi Street home in order to properly locate the driveway entrance. Should you need further information, please advise. BD:l.s M-91 -856 = I Community Development Department D HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 6, 1991 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director BUWECT: Report on Economic Development Conference I would like to thank the HRA for authorizing the expenditures to send me to the American Economic Development Council's Basic Economic Development course in Tampa, Florida, on November 4 -8, 1991. The Basic Economic Development course is a pre - requisite to a three year course for certification as an economic development professional. Mandatory attendance at each session in Tampa was required. Presenters included industrial relocation specialists, economic development professionals from around the country, and specialists in the banking industry. There were several issues that were directly pertinent to the City of Fridley: 1. Are manufacturing industries dying? Are service industries bad? According to Ross Boyle, President of Growth Strategies Organization, Inc., the answer to both questions is, no; however, there are winning and losing industries. The manufacturing sector, while not growing as fast as the service sector, is in the process of restructuring and trying to become more operational- efficient (thus, the middle management layoffs nation - wide). Boyle states that, overall, manufacturing employment will continue to drop, but the challenge will be to identify winners and losers. Boyle also notes that just as the manufacturing sector has a "multiplier effect ", so does some of the industries in the services sector. While service industries have been perceived as a "bad trend ", some producer services have a multiplier effect similar to the effect that basic industries do in a local economy. Boyle identifies these as producer services. They are services that bring new money into a local economy and are such industries such as business and professional services, research and development, information services, administrative headquarters, and the hospitality industry. N. Report on Economic Development Conference December 6, 1991 Page 2 2. The City needs a plan. The City needs to identify who are the City's existing winning and losing industries and develop a program around the winners and to identify ways to assist the losers. The City should do additional research on the source of its labor supply and how changing demographics will affect the labor supply and our local economy. Ideally, this analysis should be completed in conjunction with the City's process to amend its comprehensive plan, because the City will need to evaluate and determine an overall balance between the amount of economic development growth and the necessity to expand and /or maintain the quality of the housing stock. 3. The City needs to take advantage of available financial resources. The Community Reinvestment Act and the Home Mortgage Disclosure Act are forcing banks to work more closely with the community and prove to the federal government that they are meeting the "community needs ". Originally, these acts were intended to control local banks in order to prevent redlining. In fact, the federal government is stepping up enforcement on various aspects of these laws. Because banks have to meet these requirements for housing, they may also be willing to participate in loan programs for economic development as well. A closer relationship with the area banks needs to be pursued, not only for our new emphasis on housing, but also to determine if there is a source of capital for economic development. 4. Lake Pointe and the Southwest Quadrant In regard to our highest priorities of developing Lake Pointe and redeveloping the Southwest Quadrant, many of the speakers were encouraging about major 'corporate users. One speaker described a major corporate user and development as a "home run". He stated that the home runs come slowly and major corporations may take 2 -4 years to decide to relocate or to construct a new facility within a community (sounds familiar with Target ?). Because many major companies are restructuring, consolidation or relocation may be very important to major companies. Experts estimate that by 1993 the economy will have stabilized and that the activity for large corporate entities will have increased. In other words, the advice of the experts is to be patient but persistent. Report on Economic Development Conference December 6, 1991 Page 2 The course work was an overview of all aspects of economic development and was a thorough introduction to subsequent course work. I replaced Jock Robertson as a member of the American Economic Development Council (HRA paid membership dues previously). Additional course work to receive certification is completed at the Economic Development Institute at the University of Oklahoma. There are only 14 other universities across the country which offer the course work. None is offered in the State of Minnesota. In order to become certified, one has to attend three week -long courses, write a thesis, and take a written and oral exam to become a certified economic developer. Apparently, course work is equivalent to six credits of a Master's program in Economics. I would like to evaluate attending the course next year in order to achieve certification. I believe the cost is similar to the amount that was incurred for the course in Tampa. I will conduct additional research, and I will verify the costs for the course during the draft 1992 budget. Thank you once again. BD:ls M -91 -882 Presentation by A Ross Bn }'le. Prexident Growth Strategies Organization. Inc. 1702 Putter Lute. Reston. VA 22090 '0?- 171 -19' -0 8 -C 0 Some Manufacturing Employment Winners Expanding Manufacturing Industries Terms: % Increase in Workers, 1988 to 2000 Office Furniture +18.50 Print Trade Svcs +11.600 Plastics Prdts +159,00 Partition/Fixture +19.50 Med/Oental Inst '-60.6 F.ng/Sallnstr. +104,50 1 Miss Publishing -33.40 0.0% 5.0% 10.0 15.0 20.0 25.0 30.0 3S.0 40.0 4S.0 Presentation by A Ross Bn }'le. Prexident Growth Strategies Organization. Inc. 1702 Putter Lute. Reston. VA 22090 '0?- 171 -19' -0 8 -C 0 FLORIDA BASIC ECONOMIC DEVELOPMENT COURSE PERSPECTIVES ON ECONOMIC DEVELOPMENT November 4,1991 Some Manufacturing Employment Losers Contracting Manufacturing Industries Terms: % Decrease in Workers, 1988 to 2000 -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% Is Manufacturing Dying in America? ✓ No — It is undergoing a restructuring ✓ In technology -based industries, it can hold its share of world markets and even post some gains, when exchange rates are favorable ✓ Overall, employment will continue to drop, but there will be both gainers and losers Presentation by VI. Ross Boyle. President Growth Strategies Organization. Inc. 1'02 Putter Lane. Reston. VA 23090 103- 371 -1920 g -D 7 too-based !1(e rcpt eentativea and notify the group of job opew Federal Cana_ low . :S Ak =MwW -, Jr Percent of mots arroft WIROS 1S minutes of scllduis j Southrrsat 93.5 ' Two tent3dve feed laal mb d smaec ier South -� To help conswnera, the 1ponerMIent Is I Ov" - ay new food labels with mom ralti'iD wW Irdom� ion; hers ers ��been Ma"eJr OMA a e ime fligbt {.it eOII • Nutritional i..farn per aarriag t�owpane p y is would 2" Serving sfa� 4 or: Q44 ®1 a9 ing li *oaa no Servings Per c�orAww. 7 4adaral d4atisf health Calories <hxn flat io Fat Lear 1 g T5 g or less White House Satmand fat, - lour. 19 p° =Z! SQ M6a °'--' 'DA proposals Choleste.ol Low 5 mg 300 mg or less SO&" - . 0& �t-. 554.mg 2AW fttlrkma' Carbohydrates MR a, 2T g 325 g or..xx ■ . FIber MW WOFMS Protein Nediurn 6 g - t� • Perrot of save TO WATCH and a VhasairJA ,< Lair, . ` • a .. . z ; 4 am m heart The FDA's 1litemin C BfedhJw Medium 15 the first etrlot adlrere.see . speeft ad thefirst to andtlo r far = • • r !{utrisiarel keiorrmttan per earvint mere who free, � who and source of, Sat" alai 4 CL a" *I tea a Seniors per 7 with i about ndaaad. Yght (ar Ilia). Nov. stare to &A or t.ar.eas In s.t .7. Calories nom tat ivata err- aea� shopping ...�...t._io. Gum des, inch al oB Generals Mills, ono may be too strict, some 7� m 5 g or less faO *aled�li�.�ii -s< urd White Home pressure will Cholesterol S mg"*" 300 mg or less '•'' srequire strid adherence to rds fee, tow, high, of, fresh. New mtritioo 27 325 g or moos Ate' sore and rdient lilts will have is provide Protein �. 6 B �g e =even weeks, before they �� W py lr raln�y : if4, }: _ w yes lrro 2ysedra a •• Vdamin C 4 'd!'b'wr.errws -5 tjen food Company Oflf •� y �, ta��r radrl�+'Ir�M- ,Alea�iga�. �p�p amp the 2,000•page proposal. as General MM in - paciies,,such Minneapolis, woom make only LABELS os+rotam oa ► wo.Eea parts tau. :S Ak =MwW -, Jr Percent of mots arroft WIROS 1S minutes of scllduis j Southrrsat 93.5 ' !, -=_ : —r-s • w — 66� 8- d smaec ier South -� America ate ad third Ma"eJr OMA a e ime fligbt {.it eOII rY.. p y -es peifor. de of on- aaa,a_a J►m.Aan. !, -=_ : —r-s • w — 66� 8- d smaec ier South -� ... - -. _ ales ofof ft 1larrtltwad S. mbar 91.3 -es peifor. aver- in the w "national • .p an 89.8 ■ a � tied 's - oil J*Y a- FIRAIJ)ASO�J /aAaUJAa en" as , )err avwaps as 9x wbwrww. saw of o�.J.aaw am a D. I - WLTE -FM. Twin Cities Greenwoas lawyer claims juror was biased-. MR= L M nM stoff WMER The faumam of era eai -Greg orood• of 3& f� In Me Federal withheld in- formation about bis =MM acquhmm� new ma#ers that mold Indicate be led a etas ogaimt the e:- attorney William Many said Wednesday "Be was Matllyyy Wand against Bel nam Greenwood,- "Bad bedidheclosed foreman sofa. matioo, he would ant Us" boa on the We could have bad him stroek fraw bJ" Totten an Wednesday added Mamy's tks'• "Wre frivolous." be OW against �Greenw o or � d tM odw ddendamW Obleffi rate ' 0 rises Sharply Eupe_ Is warn eudo& Md fw reMvWT LVIM McD01QE'LL srAFF r Weabs payment m �y �* flies tamed the 'iwia Cites memp�9- mot rate to reach 5.2 petted in Se1 . tamber, a sharp rise from August's 4.6 percent and three time the normal tn- aeoe for the month. Analysts said the Jump reflected gem. conditions �yooadd am before they "Qp ur a relatively recently, the area had been doing semewhat batten than theme national average. Now we're feels V - same of that (national) effect," said: Benue Stsm agel, who analyses Twin Cities employment trends for the Minns - aota Jobs and Training Department "We are in a doubk -4 radon and, that Is clearly having impact," said Sling Wm Sohn, chief economist and se- dot vice mvddent of Norwest Corp. °It's really difficult to mate a case for any hind of meaningful upturn Twin Cjdja, employment fell al = in m the normal for Retail and whole- sale trade were particularly hard hit. with 1,688 jobs cat during the mouthy. 1,100 jobs, comparedp,= 5,000 -job rice that Is normal for September. Car abruction employment also fell more than � "FSther there's a Id less job grl owth than normally happens or lsaraCd� �- baCks than 05W Stewoagd ° • lit P eves for part-time work are not very good and [nod rare as the testes might spots In the Twin Cities' economy. y, Mffe- were glimmers of re- Covery during the summer, bat weak Cen- lower spending stagnant exports dbamed the outlook. Sohn said aswidely ` expected cut in the discount rate, the charge the Federal Reserve sets on loam to te financial imtitudom win kelp. 8� he added, "If anyone is e:peaing this to tarn things around, tbey're ruin. to be disappointed. We �t don't have the Income and the coafiaence. u will take tine." Sept- so r�NMIMUMS IM@JFI t' s-p,.Q 8 -E Prs� -i-- -t." V—"S a -F MOVING? CONSIDER SEATTLE, AUSTIN, ATLANTA, TWIN CITIES. These cities have been selected by Site Selection Handbook in its 1991 Geo-Life Survey as the metro areas with the most appealing quality of life, according to the developers surveyed. Austin, Atlanta, and Minneapolis /St. Paul also were among those picked In 1990 by Fortune as the top five cities for business, based largely on the strength of their labor forces. Commonly mentioned features among the winners Include: profes- sional sports, colleges and educational quality, cultural attractions, recreation options, p22g tra o- tion facilities, healthy environments, and cftizenTftizen nvolvement. Other top finishers were Charlotte, Tampa, Indianapolis, and Vancouver, British Columbia. (Site Selectlon7landbook, August 1991; Conway Data, Inc.. 40 Technoloav PaWAtlanta, Norcross. Georda 30)92; 404,446 -69%.) _- _ e � Community Development Department D HOUSING AND REDEVELOPMENT AiITHORITY City of Fridley BATE: December 6, 1991 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Status Report on Wal -Mart Development On December 11, 1991, the Planning Commission will review a preliminary plat to replat the Sam's Club property and the vacant property to the north of it into one parcel. Wal -Mart 'is proposing to construct a 116,000 sq. ft. Wal -Mart store immediately attached to Sam's Club building. As the HRA will recall, the development agreement executed in 1986 required a "cohesive" and "quality" development on this property. The HRA also agreed to provide $100,000 in assistance for two phases of development (Wholesale Club and additional retail). At the January 9, 1992, meeting, an item will be scheduled for the HRA to review the proposed. development and to determine if it meets the tests as stated in the development contract. Upon initial review, the proposed plans appear to meet the original intent of the development agreement; however, we would like the HRA to review the exterior building elevations and to review the development in total since this is a somewhat different proposal than what was originally considered in 1986. At the meeting, I will be able to provide an update on the Planning Commission's action on December 11, 1991. BD:ls M -91 -881 E 9 -A HOUSING & REDEVELOPMENT AUTHORITY HEFTING, JANUARY 8, 1987 PAGE 4 Mr. Meyer stated the Agreement stated that: "The Authority shall have no obligations of the developer to take any action pursuant to any provisions of this Agreement until such time as the developer has submitted construction plans to the Authority." Mr. Meyer stated he interpreted that to mean that even though they approved the development agreement, they would have a grace period beyond it. Mr. Newman stated the question raised several months ago on the Lake Pointe Development site was: How do they ensure quality? The farther they get into the specifics of the plans, the easier it is to define it. In this case, the developers are quite far along in the design proposal for the project, so, in essence, the City was taking their floor plans and specifications and incorporating those into a development quality plan. Of course, even after the development agreement was signed, the developers are going to be doing additional designing and planning. The final construction plans will also have to he submitted to the City to make sure the final design conforms with the development agreement. Mr. Robertson stated he would get a copy of the draft development quality plan for the HRA members. MOTION BY MR. MEYER, SECONDED BY MR. PRAIRIE, TO ADOPT RESOLUTION NO. HRA- 1 i— gg -"A RESOLUTION AUTHORIZING THE EXECUTION OF A CONTRACT FOR PRIVATE DEVELOPMENT WITH THE UNIVERSITY AVENUE ASSOCIATES, A MINNESOTA PARTNF,RSHIP". Mr. Commers stated he would like the record to show that the HRA had been presented with a copy of the Tax Increment Guarantee Agreement which would be executed by Mr. Belgaarde and Mr. Yaffee. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMF.RS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. CONSIDERATION OF ISSUING A CERTIFICATE OF COMPLETION TO VANTAGE COMPANIES FOR COMPLETION OF THE WHOLESALE CLUB AND AUTHORIZING THE RELEASE 0 0 IN .,-- ----RI we•rTrTenrr nrn TGE nr1 1CInDMCMT AARGCMFIJT- NOTION BY MR. PRAIRIE, SECONDED BY MR. MEYER, TO AUTHORIZE STAFF TO ISSUE. A CERTIFICATE OF COMPLETION TO VANTAGE COMPANIES FOR THE COMPLETION OF THE WHOLESALE CLUB AND TO AUTHORIZE THE RELEASE OF$1001000 IN SOIL CORRECTION ASSISTANCE AS PER THE DEVELOPMENT AGREEMENT. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONKERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. TABLED: CONSIDERATION OF DRAWING ON LOU LUNDGREN'S LETTER OF CREDIT: Mr. Commers stated they have had this before the HRA several times in the past. There have been several extensions by the HRA relative to the drawinq on Mr. Lundgren's letter of credit. It was his understanding th t Mr. Lundgren was supposed to present some information to the HRA at this meeting. Community Development Department D HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 6, 1991 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Rice Plaza Update Attached is the monthly report on rents received from the Rice Plaza tenants. On December 5, 1991, I met with Jim Kordiak regarding comparison rental rates of other multi- tenant commercial buildings in the area along University Avenue. Jim has completed a lot of work and has pre stantial amount of information. Also, we have not had th i ity t meet with Terrie Mau regarding her lease agreement. a doing so this month and a recommendation for the HRA will be presented at the January meeting. BD:ls M -91 -880 10 CA O O z w w 0 rr 10-A C* co Lo V- 0) to N 0 T- T- 0 40 Go Go Ci 0 C-4 Go c IS CO CD Ole w m cl ce CR U? CM 0) CD C* v CQ CD CO CC U) t- to cm CY w vz 'i Iz .21 CC : LLI :-CD CM V vi co V- LD ": co CV) 0) 6 co 0 Q 0 (�D Re co cd Of Cf) V- Cd ;o CV) C6 tt tz :8 a qw CY 0 0 Go tO .t a V- ui 0 0; V.: CLS CC*Dj p le COOD a 9 "I C� clto O o 0 COD C6 vi aj 6 O C�) v w 0 cm Lo Go co ;n C%l 0) 1 M M CD C Q CM 0 U) Lf) r- m f- V qt 0 04 0 CY CD 0 LO CD Ci L6 vZ Ci V Cm P,- w 9 COIJ COD A Nv- Lq C4 C C! O d0 Iz 2 f- co N C*J 00 ONE W Q CO 9 1 a 8 014 C) a OD, C C*j r LD 0) N W) CY) Cf) CO CO 8 A c vz vz OV vz CO T CM 0 r CY (D CY r CO U) 0 CD V CD CV) r%. Q 0 CM N 't cf) LO 0 04 CV) to r cf) 0 co CC qw CM co 0 vz ce 0 )M. �Ln ce CC cr) te 8 40 R m N R LOD CV) 0 0) co CC*, US So 0 Go CM C*J r- CO 00 CD 00 co 0 0 00) C! c; Cj cm N cli 72 CD It IV C6 C61 jc ZME=�a w C9 Z0 z m 2 z w m 1 c) Z z o 0 x LU W cf) m w a5Zzz[ z Y CO) z o z— () z z OC IL c m -i oc 10-A DATE 12/05/91 CITY OF FRIDLEY - HRA PROGRAM PO08 CHECK REGISTER 0ECK RUN BATCH # :ooil 002 HRA VENDOR DISC. DESCRIPTION INV # PO /INV # SEG # PCNT AMOUNT ACCT NU'JBER 21791 CHECK- PREPAID F00026 FRIDLEY STATE BANK INVESTMENT 00473 -01 JXIM3V0.0000 24,000.00 DR701 -10400 TOTAL VENDOR 24'000'00 CR701 -10100 f 24,000.00 2180 t CHECK- PREPAID tt F00026 FRIDLEY STATE BANK INVESTMENT 00474 -01 JXI?LWo.0000 1,240,927.56 IR701 -10400 TOTAL VEND- 1,240,927.56 CR701 -10100 f 1,240,927.56 2181 tt CHECK- 'REPAID BARNA, GUIY & STEFFEN, LTD. �� LEGAL SHDIVIGfS 00475-01 JXIM130.0000 OCT LEGAL 323.00 DR450 -20200 SERVICES 00475-02 373.00 CR450 -10100 JXIM300.00� 272.00 DR460 -20200 TOTAL VET 272.00 CR460 -10100 f 595.00 2182 2182 CHECK- PREPAID CASSERLY LAW OFFICE NOV LEGAL SERVICES 00476 -01 JXIM110.(�(ic}B NUN LEGAL SERVICES 152••`0 DR455 -20200 00476 -02 JXIHXG.0000 652.50 CR45,,-10100 NOV LEGAL SERVICES 6,872.60 M460 -20200 00476 -03 JXIM.0000 6,872.60 CR460- 1010(1 112.50 DR462 20200 TOTAL VEND 112.50 CR462 -10100 2183# f 7,637.60 F00023 FRIDLEY, CHECK-PREPAID WATER LGal AT LAKE POINTS OF 00477 -01 JXIM1O0.00 �$ 3,757.90 I�fi45<, -�20fi TOTAL VENDM , 3,757.90 « 2184 C 45f,10100 F00023 CHECK- PREPAID s 3,757.9C) t4LW OPERATING EXPENSES CITY OF 00478 -07 JXIM160.OW N OF'ERAtING EXpEN,;ES 40478 169. S� I�i45G -20�� NOV -08 JXIMI9G.ow 169.82 CR450 -10100 �4TING EXPAND 00478 -09 25' 31 09 DR450 -202W AoV OPTING EXPENSES JXIMID0.0000 25.31 CR450 -10100 NOV 1X1478 -10 JXIMIGG.00pO 5.40 DR450 -20200 OPERATIC; EXPANSE, 40 CR450 -10]00 NOV 00478 -02 `A'00 RR450 -2G2(V PAi 1jNA1 DICE JXIMi T0.OG00 'o-00 07450 - 10100 ERATINt; 78-01 JXIpl36G. 15t4�R4 "`'4200 84 CR460 -10100 EXPE�;ES 1:,360.33 DR 004 8 -0� JXttr� 13,x• 13 t� � 2GG 110. GGp(7 ,, 1(10(1 3`37.00 DR4&1 20200 +37. Oii tR460-I ( ►1()ti PALM 1 JOB NNE MESSAGES INVESTMENTS, AT COST CASH INVESTMENTS, AT COST CASH AC(MS PAYABLE CASH ANTS PAYABLE CASH ANTS PAYABLE CASH ACCOUNTS PAYABLE CASH ACCOUNTS PAYABLE CASH VT8 PAYABLE CASH PAYABLE B PAYABLE AMOUNTS PAYABLE CASH �CVWS PAYABLE ACCOWTS PAYABLE a" 4CCOLWS PAYABLE CASH ACCllWT' PAYABLE c"I 3 DATE 12/05/91 CITY OF FRIDLEY - HRA PAGE 2 FRAM P008 CHECK REGISTER 3-A CHECK RUN BATCH # :0011 002 HRA mom DISC. JOB DESCRIPTION INV # PO /INV # SEB.# PCNT AMOUNT ACCT NUMBER No MESSAGES NOY OPERATING EXPENSES 00478-04 JXIVMO.0000 168.40 M460 -20200 ACMJNTS PAYABLE 168.40 CR460 -10100 CASH NOV OPERATING EXPENSES 00478 -05 JXIM3J0.0000 14.25 DR460 -20200 ACCOUNTS PAYABLE 14.25 CR460 -10100 CASH NOV OPERATING EXPENSES 00478 -06 JXIM3MO.0000 425.50 DR460 -20200 ACCOUNTS PAYABLE 425.50 CR460 -10100 CASH TOTAL VENDOR $ 14,796.85 2185 ff** [BECK- PREPAID M00027 MAXFIELD RESEARCH GR0IP, INC. RESEARCH SERVICES 00479 -01 JXIM390. 0000 33,789.07 DR460 -20200 ACWJNTS PAYABLE 3,789.07 CR460 -10100 CASH TOTAL VENDOR $ 3,789.07 TOTAL MM OF CHECKS WRITTEN : 000000 tt f TOTAL DOLLARS FOR CHECKS WRITTEN : f 1,295,503.98 #*" LAST CHECK UM : 002178 TO: FRIDLEY H.R.A. FROM: CITY OF FRIDLEY RE: BILLING FOR OPERATING EXPENSES FOR NOVEMBER, 1991 AND NOVEMBER 1991 ADMINISTRATIVE EXPENSES NOVEMBER ADMINISTRATIVE PERSONAL SERVICES NOVEMBER ADMINISTRATIVE OVERHEAD TOTAL ADMINISTRATIVE BILLING OPERATING EXPENSES: PLASTIC INSERTS FOR TIF BOOK AIRFARE, TAXI - BASIC ECONOMIC DEVELOPMENT COURSE - BARB DACY 3RD QUARTER COPIER ALLOCATION INVENTORY BOOKLET MEALS, LODGING - BASIC ECONOMIC DEVELOPMENT COURSE - BARB DACY OCTOBER MANAGEMENT FEE - RICE PLAZA ELECTRICITY - RICE PLAZA MOWING - RICE PLAZA CLEAN /SWEEP BUILDING TOTAL OPERATING EXPENSES FOR NOVEMBER TOTAL EXPENDITURES 13,108.08 252.25 13,360.33 150.84 337.00 168.40 14.25 425.50 169.82 25.31 95.40 50.00 1,436.52 $14,796.85 3 -B N OMB No.250Z.0029(E.o. 10-3187 UA. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT HOUSING- FEDERAL HOUSING COMMISSIONER APPLICATION'FOR MULTIFAMILY HOUSING PROJECT -..r SECTION A • PROJECT IDENTIFICATION 1. Nana of Ph4ect 2, HUD Pro)ect Number Imolvape Ins. W See. 2021 3. HUD Project Number SPRINGBROOK APARTMEN' S ' rseot/on 8) SECTION 8 • PURPOSE OF APPLICATION TO; 7ise Assistant Searefty for Housing- Federal Housing Commissioners Application is being made pursuant to item (a): D 1, 0 2, 0 3 of Section M, Plige 3 hereof. The undersigned desire($) to participate, with respect to the Property and Program($) described below. Therefore, It is requested that you give consideration o e Information presented herein, for th "urpo$e of Ioa Rend /or approving: 0 Mortgage Insurances Section= 223 �' Mortgagor; WPM 1:) NP Q LD U s-s Other 13 S Feasibility Letter f4whob.) ❑ Direct LoadSectlon 202 Financing: ® Comnnticnal ❑ QNMA D Bond D State Agency O i SAMA Lattar (New 0441%) ❑ Housing Ant. Pymnts. Sea. 8 Other CI a Conditions! Commitment ❑ a Pniiminary Proposal Mortgage /loan Amount -3 6 00 , tc.l+ Flrrrl ConlmhtMh! . ❑ a F1Mt Proposal Interest Rate: Permanent 8. 5 % Coneuuctlon % SECTION C • LOCATION AND DESCRIPTION OF PROPERTY 1. street Address • 2. Muntalpallty 3. County 4. Bate and ZIP We a, Conoreu(onal 0111. 3rd A Lie N. S., Fridlev Anoka I esota 4 6. Type or Prolectt 7.Number of Unlb1 B.N j of B.List Accessory 8utrdinp 10. List Fieereetton FaSllltles Proposed D Rehabllhatlon suer 8ulldirps Air 6XIttlAn !12 �Lisf' on•Ravenue: 9- 9 Ana 3000 gq, Fc. e: ** Sq. Ft. -2 . I 11. 1& of Buildings: Elevator JO Walkup 12, No. of storks 13. No. of Elevates 14.Type or Foundetlow (� Slab on Grade Row mio D Deachd ❑ Sam }Detached ❑ Crawl Space Q Partial Asmt. © Full Basement IS. Structural System 18. Floor System 117. Exterlor.Flnbh 18. Meeting system I9.Atr Conditioning Synem - 1. Date 2. Price 3.Addittonal Can © Acquired ' 0 Purchase Paid or Accrued 4. Totel-Cost S.Oubandlnp 8. Relationship Between Seller and Buyer, awsintso, Balance Personal of Other Optloned Option is Attended N/A N/A N/A is it. Spaces _0S Qoverad apes•• ' - 0 S per month - V / C Perk . Laundry %;R Sq, FL or LNing Units G S A; AR . 7. Site Area 8. Zoning (lt recently chsopd, sw n hevidence) 0. It laeashold time farm, TOTAL ANCILLARY INCOME $ 13461 aroa w annual und rant S tomalning - 1 .Off -Site Facilities: Public m. 1 A Feet from Site 11.Unusual Site Features 12.8paatal Aumments w�; D ilru�tl7ournd Le1s1 other Levels ''. ® None ❑ Poor Drainage a. OPrepayable ❑ Non - prepayable S 254 713 91 -tt, ❑ Cub 0 ReaiMng Waite b.Prinelpel Balance $ ng 0 9) I tees: s Eire t. 011 . • •P@RSONALBENEFIT EXPENSES (A9E): Carpet Heat er Chock Uttlltta end Services Not included In the Paid Dlrectl by the Tenant. Q Fill Q Rook Foendstlons a Annuel Payment '5�� ` �j Laundry Feetli9es Air Conditioning Equip. Air Conditioning Lights. ate., In Units Other Telephone gTresh ❑ I;roalon ❑ High Water Table - d,Ram Ining Terms _years, Electrical Q C3 K3 ft. C3 other =, None ' BE CURRENT 1111131 RENTALS • 1 of Total Rent/ Avs.Non. Unit unit Type Sq.Ft. Sq.Ft. Sq.Ft, Rent Total ** Indoor /Outdoor Pool $4 IA•1BR/1BA 789 42,606 0.745 588 31,752 9 19.18R/1BA 718 6,462 0.728 523 4,707 Tennis Courts 117 2A•2BR/2BA 1,094 127,998 0.626 689 00,148 Exercise Rooms 27 2B- 2BR /20A 11000 27,000 0.667 667 18,009 Walking Paths 48. 2C•20R/28A 980 47,040 0.648 635 30,480 Ponds . ' 21 2D- 28R/28A 11056 22,176 0.616 651 138671 Putting Greens 18. ZE•204 /29A 983 17,694 0.653 642 11,556 Horseshoe Pit 6 211•21R/28A 1,056 6,336 0611" 626 3,7$6 Basketball Court 4 20.2BR/29A 897 3,588 01707 634 2,536 54 SA-391128A 1,148 61,992 0.670. 769 41,526 358 362,892 Monthly Unit Rental Snal ISO 3. Number of Parking Spaces 4. P+rldng and Other income ,Nat lndoded M Rent) er month - i p Attended Spaces _0S Qoverad apes•• ' - 0 S per month - C Perk Laundry %;R Sq, FL or LNing Units G S A; AR . Odiet per month S TOTAL ANCILLARY INCOME $ 13461 ToutBpsees A. C+ommer+ew slues osaedbe Day Care Center., 5639 ft. O S per sq. h. /month - $ 3 , 214 ti ilru�tl7ournd Le1s1 other Levels 94. ..�a.EL nH ft. oa S �, ,, , per sq. ft.lmenth - $ TOTAL COMMERCIAL B 31214 8. TOTAL ESTIMATED MONTHLY GROSS INCOME AT 100 PERCENT 006UPANCY S 254 713 7, TOTAL ANNUAL RENT 11mrn Bdmar 12mo,)VU) 9 •'3.0564.556' IL Gros Floor Areas 9.'Nst Rentable Raldentiel Areal IO.:NaI Rentable Commercial Arse: 406 , Ft. . Ft. . Ft. SECTION P. EQUIPMENT AND SERVICES, (C7ieak /lens Ine/udled !n the Rent LItted Below( I SECTION P•1 -UTILITIES f1vot In Rent) ulprt ml ' ' Range amd Oven ' I tees: s Eire t. 011 . • •P@RSONALBENEFIT EXPENSES (A9E): Carpet Heat er Chock Uttlltta end Services Not included In the Paid Dlrectl by the Tenant. Micro � Ova A ©J ��.J3 /Blinds• I Mat Water Rent and Dn Per ❑ � electricity Heeting ❑Get • Aefrieantor swimming Pool Cocking 80mrstinil Repairs ❑ Water Q �j Laundry Feetli9es Air Conditioning Equip. Air Conditioning Lights. ate., In Units Other Telephone gTresh -93 In Cernrnon Area Competitor E Cold Water (M Parking Ext:eri >: D In Living Unit ❑ Disposal Remarks er Dishtrasher Other Previous Editlent Are Obsolete X BasiC T.V. Cable .4 s HUD-92013 H8 4571.1 u 'd C, l rEZ' ,�9r!v 'g /Z7: ',ISi 8c 9 i l E .� 'El (M) 121£ 968 Z19 .2. ,U.1(i �� ,I�,•F``.,v, .� (.. ( .:.: 1_ ri.-L_- 2M 968 Z19 SECTION 0 • ESTIMATE 0f REPLACEMENT COST LAND IMPROVEMENTS SECTION 1 - ESTIMATE OF ANNUAL EXPENSE 1. Unusual Land Improvement, ¢ ADMINISTRATIVE 1. Advertising -� 2. Other fend Improvements $ 2, Management Fee f_ X) S""-- 3. TOTAL LAND IMPROVEMENTS 3_'l? if) Or p 3. Other 3 —"' 4, TOTAL ADMINISTRATIVE s 300,000 STRUCTURES 4. Main Buildings _ B. Aoceesery Buildings OPERATING S. Elevator Maintenance Exp. S e. Garage .. $ RAO fm 8, Fuel - Hosting 7, All Other Buildings S � � 7, Fuel , Domestic Hotwster S S. TOTAL STRUCTURES 3 In, tisn,, B, Lighting and Mile. Power S S, SUBTOTAL fL/ne 3 p/w Llna 8) $ 11 . ADQ . OOp �� 9. Water S 10. General Requirements (L /ne 9 x f; %) $—'2081 10.081 11. SUBTOTAL Who 9 plus tine t0) ¢ 11, Garbage and Trash Removes 12, Payroll : 13. Other S � FEES 12, Builder's General Overhead (Line I, t. x__2_X) 3 13: Builder's Profit • (Line t t x r X) ¢ _A2960M 14, TOTAL OPERATING 250`000 14, SUBTOTAL /Sum of LMa t t throuph 13) 3, AA3, 000 MAINTENANCE 16. Bond Premium $ _- 5011 000 15. Decorating d 18. Other Fees $.— 1 R1) -000 1S. Repairs ¢ ' 17, ESTIMATED TOTAL COST OF CONSTRUCTION S _13.4U3,, 000 17. Exterminating S — 1 S. Arohlteat's Fee - Owlgn • (L/ne F4 ,x 3 1t) S n� 1 S, Insurance $ 19. Architect's Pee- Supervleory fLlns t0 x X) S _ l OQ, ,000 19. Ground Rxpsnss $ im 20, TOTAL FOR ALL IMPROVEMENTS (Sumo Llnet 17 through 191 S 14 083, 000 20. Other $ . 21:.Cost per Oros Square Foot S fb►ne ZO d/r)ded by !nm 8, Sac &1� 21, TOTAL MAINTENANCE : 127,500 161) 22. Replacement Rat.: New Const. - (.00Bx 22. Conm etion Time 2 Months Plot 2 22 Montht Line 8, Sec. 0 ToNf Stvuct.J Rehab ( 004 x Mon /Loan Reouerred In Sec M) 23, SUBTOTAL EXPENSES l2r�.n��f es 4, 14, s _ 63,300 S 750,800 CHARGES AND FINANCING DURING CONSTRUCTION 23. Interest on S 15, � .10, 5 24, Reel Estate: Eit. Assessed Value for Months $-1,535,313 . S 24. Taxes ¢ 40,000 at $ per $1000 S-390,00 26, Insurance S 65,000 26. Panonal Prop. Est. Assessed Value 28. HUD /FHA Mtp. Ins, Pr� -J -, 0%-)$ - 159,513 as 27. HUD /FHA Exam, free (;..U) ¢ 47,654 at $ per $1000 + t 28. HUD /FHA Inip. Fees (0.811111) $--- _ 79,766, 20. Employee Payroll Tex S —M—M.—Ma l ) 28. Financing Fee (1•.51)3 _2100 n 27. Other S U 30. FNMA /ONMA Pee 12-91 $ 3LQ, r, n� 28. Other S Q 31, AMPO ' (2,0X) ¢. 0 20. TOTAL TAXES s 390,000 32. Contingency /&& JON (10k) f)< 0 30,TOTAL EXPENSES (Line 22 plot Line 29) $ y �!, 800 33. Title and Aaoording ¢ 50, 000 31. Avg, axp. per unit pat annum (PUPA1 3,158 34, TOTAL CHARGES AND FINANCING ¢ (Llne 10 d/r/ded by TOTAL Item 7 See, C) $ SECTION J . TOTAL SETTLEMENT REQUIREMENTS LEGAL, ORGANIZATION AND AUDIT FEE 1. Development Corti (Line 48, SM1,04 CJ $ 3 ape ¢ 15, 050 36. Organisation ¢ 15,000 2. Cash Reel. for Land Debt /Aoquidtlon S 37. Cott Certification Audit Fee ¢ 3. SUBTOTAL (Llnet t plus 2) S 38. TOTAL LEGAL, ORO. AND AUDIT FEE ¢ 304000 4. Mortgage Amount S 5, Oeveropmant /Cash (Gina 3 minus 4) 39. 8uilder's and Sponsor's Profit and Risk $ 0 S, Initial Operating Deficit S 40, Contultent Fee (Nonprofit Only) ¢ 0 7, Discount Cotu See Attached S 41, Supplemental Management Fund $ _ 0 B. Interest Yield Coen Sources & Uses S 42, Contingency Reserve fRehebfildrrlon Only) ¢ 0 9. Working Capital f2X of M6rtpe0o .amount! S 43, Relocation Expenses 3 0 10. Min. Capital Investment (Sac. 202) S 44. Other $ 0 11. Off -Site Construction Con$ S 46. TOTAL ESTIMATED DEVELOPJMENT COST.- 12. Non- Mortgagebie Relocation Expenses $ - - - -- - (L /net 20 t 34 t 38 ehrauph 441 4-16,648,742 13. Other S 40. Land (8srlmered.Merket Pf104 of Site) 14. TOTAL ESTIMATED CASH REQUIRED (Sure of Llna S through t3) S sq. ft. 0 ¢ par sq. ft. 8 FUNDS AVAILAB A M REQUIREMENTS 16, Source of Cash; a' S 47, TOTAL ESTIMATED REPLACEMENT COST S 17023042 OF PROJECT (Line 43 plus Lind 44) b. 40. Avenge Coat per Living Unit S_.,4 aiQ e. 3 fLlne 48 divided by Total in Sea 4 Iten► 7) SUBTOTAL to * b * cl � 18. Source of Fen end Grants: b, S SECTION H • ANNUAL INCOME COMPUTATIONS 1, Estimated Project Orosa Income . ¢ 3,056x556 Ua (L 7, &wr/on 4 Pape t) - ---- ----�- 3 2, Occupancy (Entire Pro /earl 3, Effective Grotr Income fLMe t it Line 2) 9 % 2 842 1 -'97 e, SUBTOTAL fa f b t c) 3 �� 4. Total Project Expenses /Line 10, Station 1) $ _ � 17, TOTAL Cash. Feet and Orants S 6, Not Income to Project Who 3 ml rut Line 41 3 � /Sum of /romp t s plus ft) ---- ---- -- 8. Ex arse Ratio (L nr4 dJv/dsd b Line 2) % NOTE: Line 17 most equal or exceed Line 14 .2. ,U.1(i �� ,I�,•F``.,v, .� (.. ( .:.: 1_ ri.-L_- 2M 968 Z19 SECTION K • ..AMES, ADDRESSES AND TELEPHONE NUMBERS Ur THE FOLLOWING 1.. ❑ Sponior,. ❑ Mortgagor, ❑ BorrowM, ❑ Owner 4. General Contractor Nemec University Avenue Associates Partnershi Name: Address: % Belgarde Enterprises Addrate: N/A 7841 Wayzata Blvd. Minneapolis, MN 55426. ` Telephone Numben 546 -2000 ZIP Code: Telephone Numbers ZIP Code: 3. Charles P. Beigarde, Q.P. E. Sponsor's Attorney Names Harry Yaffe, G.P. Noma: Sherrill Oman Kenneth C. Belgarde, G.P. 'address' Leon E..Mart:in, G.P. Addnse: Larkin Hoffman, Daly A Lindgren Mary E. Belgarder Q.P. 7900 Xerxes Avenue South Bloomington, MN 55431 Telephone Numbers ZIP Code: Telephone Numbert ZIP Code: 3. ❑ Consultant, ❑ Agent, ❑Other Authorised Representative S. Architect. Nome! Nernst Addren: Address:; N/A Telephone Numbers ZIP Code: Telephone Number: YIP Cede' SECTIOWL • APP LICATION ISAMA and Ifesslbllhy Lerterl, A. The Undersigpned certifies that: (1) He/She it legally authorized to represent the entity (eland( lad below with respect to all transactions ppertaining to this application and all matte related to It' (2) Any and all actlon(s) by the unaorsigned is /are legally binding on the principal(!) and the entity tI ) being to resented; (3) He /She Is familiar with the pprovisions of the regulations issued by the Depart• mOnt of Housing and Urban Development {HUD pursuant to the above•identified Sectlon(s) of.the respective Housing Act(s); (4) to the best of his/her knowledge and belief, the entittyyiI�ait) Identified below has/have compiled, or will be able to comply, with all the require- menu of the regulations which 'ere a prerogUltlte with respect to participation In the. pro remit) selected; (6) The principals) of the entity(les) identified below are familiar with the !pacific provisions of the Right to Pinanclal Privacy Act of 1978; (6) the principal (s) Is/ are aware that disclosure of certain financial Information will be required by IUD in the course of processing this application; (7) That he/ she hat made a pbyslcal inspection of the property end, In'hls/her opinion, the sitd plan submitted conveys a concept which cen be tea• hohably followed In practice- (e) The proposed construction will not violate recorded zoning ordinances or restrictions; (9) To the best of is/her knowledge and belloi no information or data contained herein or In the exhibits or attachments submitted herewith, are In any way false or incorrect and that they are truly descriptive of the project or property which is Intended as security for the proposed mort• gage loan and /or is presented for consideration with respect to the request for approval of a Housing Assistance Payments Contract. 13. The Undersigned assures end spreel that: (1) Pursuant to the regulations and the'releted requiremame of HUD neither the entity (Ies) Identified below, nor anyone euthorlted to act on its /their behalf, will decline to sell, rent-or otherwise make available any of the prfQpor or housing In the rolecl, identified herein, to a proWader cave purchaser at tenant because of race, color, religion, sex or national Igi I, 2) The enttty(les) igen If led below will comply with 1p1, Slate and Ideal laws and ordinance! prohibiting dlscrQnstion; and (3) Fallure or, refusal to Comply with the requirements of either (f) or 2) shall constitute sisffielant bests for the Commissioner to reject requests for future business with the Identified entlty(les) or to take any other action that may be appropriate. C. ❑ Herewith is a check for $ In payment of the required fee for a SAMA letter. Principal Contact: Signed: Date*. Telephone Number: On Behalf of: 13 Sponsor, ❑ Mortgagor, ❑ Borrower, ❑ Owner SECTION M • TO THE FEDERAL HOUSING C p. W0 st o o e Request Is hereby made for a C) CONDITIONAL COMMITMENT ® FIRM COMMITMENT to provide mortgage Inturanceon a loan, which will Involve: ❑ Insurance of Advances During Construction IN Insurance Upon Completion, with respect to a principal loan of $ .15., 316, 000 which will bear interest at liha rate of-8. 5 % eR the - Can ON _- n- 6ew""d on the Permanent Loan. The understghed mortgagee requests consideration for rortgage insurance pursuant to the provisions of Section 223 (F)__ of the National Housing Act, and the HUD regulations applicable theretb. Sold insurance Is being requested to cover a loan which is to be secured by a first mortgage on the property described herein. After examining the proposed security, the undersigned considers such project to be dellreble end- It lnterestid in making a loan in the principal amount and at the interest rate ltatadibovs. The loan will require repayment of the principal over a period of 420 month! (12.yeor!) in accordance with on amortization plan acceptable to you. it is understood and agreed that the actual financing fee (Item 0.29) will not exceed L.-5% of Your commitment amount. Presented,herewith is a check for $ Ad which it In payment of the application fee required by HUD regulations. [a 2, Request formoroyal of Hous(ngAll nth Paymments 8s!ot Controot ([an_e): Tile undersigned owner requests your eohsldaratlon with respect to approving a Housing Assistance Payments G'ontrect pursuant to Section 8 of the U.S. Housing Act of 1937, so amended, and the related regulations applicable thereto. Submitted herewith is a proposal whlgh defines the scope of the improvements and -the type and quality of the housing which will be provided on the property dpscrlbad herein.' Sold property, upon completion of the Improvements, will comply with the applicable standard! end related regulations of the Depart• mint of Housing and Urban Development. Such proposed housing is being offered for lease, to eligible tenants at the stated contract rents, pursuant to the provisions of the regulations pertaining to the ebove•referenced U.S. Houting. Act. Q 3. Request fora Section 202 Leant' Principal Amount $ dg Permanent Interest Rate of Pursuant to Section 202 of the Housing Alit of 1969, as arhanded, and the regulations applicable thereto, the undersigned borrower here- by requests a.loen in the principal amount and at the Interest rate stated above. The proceeds of the loin ere to be used for development of the property described herein. The scope of the development of the property will be consistent with that information psrtslnli g to Im• provements, submitted for your eorisiderstlon. The loan is to be secured by a first mortgage on the property described herein. The pr►n, elpal amount of the loan will be repaid over a period of__ months (.years) In accordance -With en amortization plan acceptable to YOU& Prinel d Contact —horns and Address of Mortgagee Glaser .>r inanCial Group, Inc., 2550 University Avenue West: e'P �2! 6441933 CQwet international Suite .460S, St. Paul, Mai ned 5114Ft 1 t8 re+ 3! ostt Sighed fPrepo,ed Mortpeped lr✓ie tdo'r tern f/ Des 3 HUO. 2HO 467161 'd 0l ZZI09Jb'ON /ZZ 9I 'ZS /6Z 'Z (IlH1) NIKE NREZOH NI}I E Y�OIi� ££££ 968 ZZ9 CguHj�B�,� Co Charles P. Belgarde Minneapolis, Minnesota We have compiled the accompanying personal financial and credit statement of Charles P. Belgarde as of June 30, 1991, included in the accompanying prescribed form in accordance with standards established by the American Institute of certified Public Accountants. Our compilation was limited to presenting in the form prescribed by the U.B. Department of - Housing and Urban Development (Form. HUD- 92417) information that is the representation of the individual whose financial statement is presented. We have not audited or reviewed the financial statement referred to above and, accordingly, do not express an opinion or any other form of assurance on it. This financial statement is presented in accordance with the requirements of the U.S. Department of Housing and Urban Development (Form kM-92417) which differ from generally accepted accounting principles. Accordingly, this financial statement is not designed for those who are not informed about such differences. ,0 a �'4 / COPELAND BUHL & COMPANY August 14, 1991 CERT1nM PUBLIC ACCOUNTANTS �ES W COPELAND. CPA TERRY L ADANII. C.PA GARRY L McCREARK C.PA 600 East Wayzata Boulevard DENINISW BUHL, C.PA MICHAEL? BLAZEI. C.PA THOMAS L PESO I. C.PA Wayzata, Mitint'.SOta 55391 LEE C. HARREN, C.PA OARLENE C BLAZEK. C.PA SCOTT A. BROIN. C-PA BRAD W. SCHLATTER. C.PA 9AT►II. EEN M. SCHNEIGEL. C.PA (G I zj 473 -0273 FAX (6tz) 473.301 DENNIS G. PETERSON, C.I A DONALD A WEBER, CA II�AUN IIENDRICKSON.C.PA MARK N K. THOMPSON, CPA Member SIC section AICIYI dwWon far Gmm STEVE N. ARENDT CPR BRIAN 0. LEL C.PA PHYLLIS A. VRBA. CAA MARK R. LEITNER, CAA 8 'd C 11�ZZ 1090b 'ON /ZZ 9 l 'ZS/ l E 9 l 16 �9 'Z I (21) NZIH'IH NVEdOH N IM I WOU 1111 968 ZT9 SpringBrook Form 92013 Street Address for each buildings Bldg 1 121 41 units 3 Stories 15363.8 Gross Floor area or 46091.4 2 101 41 units 3 Stories 15363.8 Gross Floor area or 46091.4 3 191 42 units 3 Stories 15672.7 Gross Floor area or 47018.1 4 181 42 units 3 Stories 15672.7 Gross Floor area or 47018.1 5 171 36 units 3 Stories 13460.7 Gross Floor area or 40382.1 6 161 42 units 3 Stories 15672.7 Gross Floor area or 47018.1 7 151 42 units 3 Stories 15672.7 Gross Floor area or 47018.1 8 141 36 units 3 Stories 13460.7 Gross Floor area or 40382.1 9 131 36 units 3 Stories 13460.7 Gross Floor area or 40382.1 Rec 111 1 Story 10,400 sq.ft. Cabana /Day Care 1 Story 5,639.5 sq.ft. Fridley, Minnesota, 55432, Anoka.County Year Built - 1987 Site Area - 20.601 Acres /897,576 sq.ft. There are no elevators in the buildings There are laundry facilities on each floor of each building which contain two washers and two dryers each. Parking: Zoning Classification: Date acquired: June 1986 Price: $850,000.00 459 Regular 22 Raudicap 237 Garage 10 RV (approximation) (approximation) R -3, General Multiple Dwelling Foundation Type - Concrete slab on grade with wood frame construction Concrete block walls and reinforced concrete footings Floor system - Concrete slab on ground level 2•x 8 wood joists with 3/4" tongue and groove plywood subfloor and 3/4" gyperete on upper levels Heating System - Baseboard hot water heat, central gas fired boiler Air Conditioning System- Thru -wall air conditioners Exterior - 5/8" interior gypsum board, vapor barrier, 2 x 6 studs, 5 1/2" Batt insulation, 1/2" gypsum sheathing, Pre finished steel siding or 4" brick veneer L 'd 0 l bZZ 1090b 'ON /H:91 'ZS 100 : 91 16,9 'Z l MI) N,LNI'IS N%90H N I}ISV'I WOU ££££ 968 ZT9 Ite )aq IQ1 in irs Personal Financlal and Credit Statement U.B. Department of Housing and Urban Development Office of Housing -- Federal Housing Commissioner � r Alan u., �wf_rw►1 to ,. senate 11,01") Name , ;. Number Iadallon S rin Srook Apartments Ameunl Fridle Minnesota !al•TM) of (lets Addrtea Charles P. Bel garde 6/30/91 2219 Platwood Road Minnetonka MN 55343 Assets L10111fles and Net Worth Cash on hand In banks (141am+1 of eepodtery) Balance Total Accounts Payable s 12, 000 Notea'aayable 2722,400 8 965,500 Debts payable In loss than one year aT j ri•ev�sd mertlrap.t on 1804 sew suwM01) Debts payable In lest► than one year 965,500 Os •uera� Choffol maef fstoo dr other NMa ) _ Accounts Receivable s 203,000 203,0 0 Lose: Doubtful Accounts Holes Aeoelrat ►le Contract for Deed t 135.00 135t_000 Other current 11ablilllea: (attars.) Accrued Interest = 10,000 Less: Doubtful Noise Stocks and Bonds - Market Value r&heevle A — reverse dad) 10,000 Other Cunent Assets: (detedbe) Total Current Llabluttee: = 292,400 Debts payable in more Than ont year rdeeurodbymonp 6paaanMAetmdevlydMDt) 3,534,440 Income-Tax Refund = 25,00 25,000 Debts payable In more (hart one year oft"' rse a► arierral morrsae•a ar other Prime We Ileltf) Total Current Assets i 1, 328, 500 Real Property — at not* MA"1" e a -. rov"o av'r 5,583,440 other 11011111es Nesoaot) : Machinery Equipment and Firltures'- atnot _300,000 Loans from Partners 190,530 Life Insurance Iveth ofts bas bans) 6, 090, 530 Other Aeeele Mttera+e) rest Receivable 1,135,15 of rred Income Taxes 5L900,000 Total Usb11111es s 9;917,370 j.to•P6�tqigrj,to Fund • ons o nership* Investments ' 10,886,06 Nel Worth 15 501 510 12,796,080 Total Assets =22,713,460 Total L1ab11111ae and Net Worth : 22,713,450 -beer, mcwe+np enprofornorTtt, rocs esprsartlron. Accounts and Netts Raealvabls fte mar m amMeraa an neon.. far w fete/ em- TTpe (PE.Abr0) None Add►Itt Maturty Data Ameunl Type (0,4.AOro) Name Addeo#$ ' Matunly Date Amount Type f►I ROP0) Hama :: , Address M6lunty pat, Ama,el UPS Inautanpt Face Value asnsllelary And Ne1AA aAVAhIA TypalA.E.norCIP Name Address Amount Maturity 0016 Type fp,E,Aerol Name Addrns AMMAI Muualy 0010 Pled ea A$eete trim Pledoad I Ameunl OIbH1In0 Wbcly -- Type 11motd Amount 011u11bp 1.1011hT i' Typo Pleased Afnft t 0! t1111ny 1.10111ty Note: 1f mar lw# h Mqulrod ute • teptptt shed( of 0apt►. RopfgCOS "k,'.1`j7-WW1c --Lj :*$0100;, - - - _ - HUD -02417 (4.6S V 1 1. Y • 1� 'A. . t 4... . Cp1LTn21ni�enr #arTt ")lr�r±niir'S 7'-++nnita+inn Ra+nnr *1 �l.Lii1 ! f ££££ 968 ZZ9 Charles P. Belgarde E l_ egal ProMdInQ1 #1 0111 JIFF •lpreoeedMpl M►e ee•A INHIuIed tr credrfon, Of Jny PAS • (If rled *dpmmu nmVA on head give 10 deI.H1 r Schedule A — Slocks and Bonds Ouulpibn CvMenl Ma1►el Vt!„a N 1.111ed, Name racfltnoe • (At tau N rA.1 alelemu.11 Schedula 6 — Real Prooerty endb. /s m,mp. a..M..ea it .n., Location end Description of Land and Buildings Owned Age Original Cost Me!ket Value Ageueed Vale Monp000d Fol -- Insuie;l For -- MniLl RestdanCg w 2219 Platbinod-Road Pgr- Minnetonka N 8 yr 585.00 615,000 Hainesway I Apartments 11 vr 1,783,DQ02.221.720 1 2LM Haineswa II A'artments 1 r 1,U9.00 1,462J60 15 06 Haidosk" ' III 14 artments ' ' 7 Yr 1,185,0001,284,660 1 259 66 Tolals k583,4401 TB is ......_ — .,^... ... r., ....,. 1. ul.l.. 1. sir w.... . .n1 .. 1nHer.I Location at Rost Properly , ' Name of till@ Holden Bank ondlor Trad0teldrences Nams and Address Account Numbers 1 hereby certify that the forepoln00 llpuree and the etalamonts contained here, submIlled to obtain mortgage Insurance under the Nallonal Hcusing Act, are true and give a correct showing of my financial condition as of this dale. .Nome i ' OMo atpmd Y LA Warning �- U.e. Criminal soda, B.atlon 1010, la tot, u B.G., "Federal Housing Adminlatrallon transactions ", provides In pan: "Wnoa.er, for tr,s purpose or ... In. Iluenoln0 In any way Ihs action of such AM I elrallon ... makes, peas@&, ullera, or publlehea any statement, knowlAg the Isms to be false, ... ths11 R@ Ilned net mote than $6,000 or Imprloonad not more the two years, or both." �� 968 Z19 r-� :•Personal Financial and Credit Statement Proleel Nome Spring8rook Apartments al.amenl el Leon E. Martin Aseets 6/30/91 U.8, Department of Housing and Urban Development eafi ras Ofllce of Housing — Federal Houelnp Commlaeloner OMB No, 2502.0001 (Exp. 6,30,881 �oeNlen Ftidley, Minnesota 9404 High Meadows Drive, Blackhawk, SD CguH�D Co is and Not Wnrli► —: C Rego Of ndeaen ant Certified Public ACcountanb_s Neon E. and Connie C. Martin Minneapolis, Minnesota We have compiled the accompanying personal financial and credit statement of Leon E. and Connie C. Martin as Of June 30, 1991, in accordance With included in the accompanying mericaniInstitute of Certified Public standards established by Accountants. our compilation was limited to presenting in the form prescribed by the U.S. Department that is Housing representation of the individuals 92417) information whose financial statement is presented. We have not audited or reviewed the financial Atom opinion sore any other above n form i of accordingly, do not exp ress assurance on it. the This financial statemeU 9 is Department of aHousi gceand t Urban requirements of the Development (Form HUD- 92417) which di thif3 financialastatementtis accounting principles. Accordingly, not designed for those who are not informed about such differences. COPELAND BUHL & COMPANY August 14, 1991 CERTiFlEE)PUBLICACCOUNT/1NTS IAMESW,COPELAND.C.PA SUHL. CAk nRRYLADANK,C,PA MICHAEL SLAZEI•C 11A CARRY t., McCREARX CPA THOMAS E � i IEIL CA BRAD W. I t ER 1300 East Waysata Boulevard bENNIS W LEE C. HARKEN. C.PA. DARLEPI A. C. OIN. C.. C.r A SCOrT A 9ROIN. C•PA ISEL KATHLEEN M. SCIiNEEEL f.•hA N SC MAP.KA.TIIO IOEL CAA Wayzata, Minnesota 55391 (612)473 0213 61 0273891 pENN15 G. PETf.R50N. C.I'A. DONALDA.WEBERC.P.A. ltfFitrvD.DegOER.C•.r'A L vALINHENDRICKSON.C•PA PUhSLNS TlReaC-PA Or~ (612}- STEVE N. AREN DT, C.P.A. MARK R lE TNER. C.PA. Me,, d,er SEC se,.r ;on A1Cf*A t16W ,I fw flrmt. New. If mere epeet, Is moukod was I I,plgtl theft of Ropincos FYA•241 ?�1slct� Ie- o`�calels; d n t —'i� P7`'711 ff1't' 1'r'(t�C I •' �hnil7 {- RRr ..AA _ _ AA��• .I:t t 9992 968 Z19 Leon E. Martin @pal Pfncoedinge h! arty Mpelae1-Vftpe he" 6144 he111010d br 01091110rr Of 0nr- eMeflt /1091 l,Mtmenll gmeln an reeve. give 1.11 gown) '• Schedule A — Stocks and Sonde Oeleripllen Q+manl Mlsrhet WNW 11 1,1911°. Name fx~ge At 91,10 d /a.r ipl,.Nart todule 0 •••- Real PrDD86v nowints hh.n A„Id nes_ N an.► Location and Description of Land and Buildings Owned p 0 Ape Original Cost Markel Value Assessed V rue Mattgsged f or --. Insured For —. Personal Residence - 9404 High Meadows 6yrs 126,000 140,000 81,800 Drive 6lackhawk South Dakota • To1i1a 150, Q00' 81, 800 Title (the loser end ovaitimbis Otis to ee'10eN of <M ebo»a ulrtbld m1 MM h #010110 m 1 mm*. 1■aDt w 10416weJ Location of Aeal Property Name of Title Holders Benk t nndlor Trade nelerenoei ' Name and Address t Account Numbera I hereby cartlly that the foregoing figures and the etalements contained hero, subml!ted to obtain mortgage Insurance under the National. Housing Act., are We and give a correct ehowlno of my financial condition as of this date. Name . ; We signed • Warning .. minel Code,'8eatfon 1010, Title % USA, "Federal Housing Adminletrauatt ifanaections ", provides k pen: -whoever, for Ins purpose of In. ! ltusnoing In shy way ilia action of suoh Adminlitratlon ... M0#11. pseeee, Wtere. or publish@& any Statement, knowing IM same to DO 1#156, .. , shell be r,ned not more than 1113,000 at Imprisoned not more than two years, or both." 'd 01tZ71090b'ON /ZZ :91 'ZS' /CC :91 16 r9 'MM) NX9 MEE IilMI NrUV�.� V££i 968 ZT9 Personal Financial and Credit Statement U.S. Department of Housing and Urban Development 0111ce of Housing .- Federal Housing Comm)sstoner OM13 No. 25020001 fExo. 6.36M P"I■d Name — Number Looatlon 5 rim Brook Apartments F>;ldley, Minnesota Itlament of onto Adorns Kenneth C. Belgarde ', 5/30/91 RRZ Box' 476, Delano MN* 6532ti Assets Liabilities and Net Worth Cash an Hand In banks 6elinee total (Name d Oepesrror•,) Afeeunts Payable ! 3,000 f CguHj D � Co e o o e end t Cer 'ed b ie cou to Kenneth C. and Joyce C. Belgarde Minneapolis, Minnesota We have compiled the accompanying personal financial and credit statement of Kenneth C. and Joyce C. Belgarde as of June 30, 1991, included in the accompanying prescribed form in accordance with standards established by the American Ynstitute of Certified Public Accountants. Our compilation was limited to presenting in the form prescribed by the U.S. Department of'Housing and Urban Development (Form HUD- - 92417) information that is the rep We haves of auditedaor whose financial statement is presented. reviewed the f not cl an opinion ooze any other form not accordingly, do express assurance an it. This financial a the U. S is Departnment of accordance and Urban requirements of t accepted Development (Form HUD- 92417) which differ financial generally is accounting principles. Accordingly, are not informed about such differences. not designed for those who (21 ,, ,►,�, 6 V CopELAND BUHL & COMPANY August 14, 1991 TERRY L ADANK C PJ� CARRY L M<CREARY. C.rA C_ERTIFIED rt sLiC ACCOUNTANTS II_AMEN Mt COPEIAND.. PA MICHAEL t: SLAW. C.rA- THOMAS ti rCSGH. C.PA bENN15W.BUHL,C.PA. PARLENEQ5LALEK.CAA- BRAD W.SCHINiER.C.NI 1300 East Waymm soulevard LEE C. HAttItEN. CA4. SCOTT A BRON. C•rA KATHLU NL SCI INCIBELC PX Waycata, Minncsota 55391 DENNIS G. PETERSON. CPA. �EpFREY D. DeSOER. C.PW MARK A. SCHNEIBEL CArk {Gt 2) 473.0273 DONALD A, WEOEIL CPA. teVAUN HENDRICKSON -C I!A SUSAN ILTHOMPbON. CXA yiUt (6i 2) 473-3891 STEVE N. ARENOT, C.PA. BRIAN D. LEE. CPA PHYLLIS A VRaA- C.PA Me...lrarSECxtlWkMCC^dM+"� MARK0.LEITNFACrJ1. - - - HI) N;S �� OH'�ie , . iz�7 4N, oyrr ££££ 968 ZT9 baso,lpnon Naa fMd /eats povafs IhrY.wea. N Ae.l Currant Market Volvo U Liallo, Nu+a 6acaanpe (a►NN Amiga" LOOellon and Poserlpflon of Land and Buildings Owned c Ape Original Cost Market Vacua Assessed Vaus Mortgaged For — Insured For — . 1 Totals TWO rraa is tai and oquimbis wt to air wmet of the aeore4asenwed met Mere to saigir In a< r IMma, oaeePl ae rallorra.r Location of pail PrOpenr Name of Title Holders 1 •. Bank andfor Trade Refarenaee . Hem# and Address Account Numbers 1 hereby as fy that the foregoing figures and the statements contelne11 here, submitted to obtain mortgage Insurance under the National Hcuslnp Act, are fro and give a correct trhowing of my financial condition as o1 this date. Neon Pale etgord Warning — U.B. Criminal Qode,'8eetfo(i 1010, Tills is, U,8,0., "Federal Housing Administration transaotlom ", provides In parr: "Whoever, lot the purpose of ... In• fluenoing In an array tin Mellon of such Administration ... makes, pansa, utters, or publishes any statement, knowing tee sane to be tales, ... sill be fined not more than S5,1 or bnprlsoned net more than two years, or both" 1090b 'ON /ZZ: 9l 'ZS 96 : 9 l 16 ,9 'Z l (nHZ) NZNCIH NVIlZ3�OH �'�I?Ih�? Yt3� ££££ 968 ZI9 Personal Financial and Credlt Statement twos P iing4rook Apartments'' Harry J. Yaffe late Cash on hand In bank$ (NOMO of `ipealm7) C U.B. Department of Housing �^ and Urban Housing Office of Housing Federal Houaing Commissioner Leeauan OMG No. 2502.0001 (Exp. 630.88) Nome« Fridley, Minnesota eel. $ .6/30/91 2300 Archers Lane, Minnetonka, MN 55343 L)a 411199 and Net Worth Total Accounts Payable s 1.600 CQPELAND Co Report of independent ce ofie Public Acc tants Harry J. Yaffe Minneapolis, Minnesota We have compiled the accompanying personal financial and credit statement of Harry-J. Yaffe as of June 30, 1991, included in the accompanying prescribed form d Ce standards established by the Institute o certified Public Accountants. Our compilation was limited to presenting in the form prescribed by the U.S. Department of Housing and Urban Development (Form, HUD- 92417) information that is the representation of the individual whose financial statement is presented. We have not audited or reviewed the dof statement opinion ore anY other form n form o t accordingly, assurance on its Thin financial statement is presented in accordance with the Department of Housing and Urban requirements of the U•S. which differ from generally accepted accounting principles- Development (Form HUD-92417) crdingly, this financial statement is not designed for those who are not informed about such differences. / will r ,. 1 0-0 COPELAND SUHL & COMPANY August 14, 1991 CERTIFIED PUBUC ACCOUNTANTS �AM ES W. COPELAN D. C•PA DENNis yy BUFit, CPA TERRY L ADANK. C-PA MICHAEL L �0 CAA C BLAZER. C PA CARRY L MCCREARY, GPA THOMAS E PiSCH. C PA BRAD TER C.PA Soo East Wayzata soulevard WA eta, Minnesota SS391 y LEE G HARREN. CPA DENNIS G. PETERSON, CPA C-PA DARLENE E N K SC SCOTT A. BROIN.C.PA KA7HEEEN M S[HNEI4EE,C PA REy V. Dei0ER. C.PA MARK A. SCHNEIBEL. C.['A C PA SUSAN L THOMPSON. C-PA (61Z)473-0273 FAX (612) 473 -3891 DONALD A. WEBER. STEVE N. ARENDX C—PA HENDIUCKSON. BRIAN D. LEL CXA- PHYIUS A. VRBA. C-PA Member SEC section AJV'A dMbion W Mti MARK R LOIN UL GPA rIfrlrr ta0.'. ; :91 .vJ J.1. Zvi J l 14f1H.1;, NiW li Nm. opu .", ££££ 968 ZT9 4a Le a! Procoodln � nr •n r er e•du r Aar• ae� r".In Schedule A — Slocks and Bonds Onerlplkn 1,045 Shares First Bank Systems 0 Etchadulo R .. Rest pnneaeev /1.•,e.l. we.... a..u.... w .�I rry J. Yaffe trr, er ear wts•Nrrled ludFMIPAll n,neln so beard, jive tin gets Cvnent MrMV91-4 II listed. Name ExeMny auOIQI w IMI dluaen,rr 16.870 Looallon and Description of Land end Buildings Owned Age Original Oast Market Value Assessed Morto•ead Insured For — J' Person 1 " ' ' ' dente = 29'60 Archers It..,,.aa •eA 1Aa aiafarnnnta cenialned here. Submitted to obtnln mongago Insurance under the National Housing "' 1• ° Minnet6nka', MN • 2 Yr 125,000 125,l000 26,300 Total& Title free frost and pwlsor• gun is in Anon of The eoove de•aroee Location of Reel property F mms. incept at lellowa. Name of Title Holders 841111% ■I IYI/VI IIYry Name and Address ! - Account Numbers 1 It..,,.aa •eA 1Aa aiafarnnnta cenialned here. Submitted to obtnln mongago Insurance under the National Housing 111momm , Yv,..., ,..r. ...v __ _ _.._ _ Act, ere true and glva a correct S owing o my flnanc al condition as o s e e. Dail 71 0 �r Warn » U. Ctimins ,'Seollon 101o, Title 1S, U.6.0.1 'Federal Housing AdminletralloA trenescltons ", provides h put: "Wneerer, for ins purpo•e e! ... tn• Iluano Q In any way th sat on of such Adminlitratl*n ...Takes, paeeae, utlere, of pu011ahee any stalement, knowing IM 8ama to be 10180, ... 0nan be I►nad not More Ift is oou or IMptleoned not more than Iwo years, or bot0." 0 I rZZ 1090b 'ON /ZZ : 9I ',1S 190 : 9 I 16 ,9 'Z I (M) NZNIIS NVERH N ?Y.NY i P ►0` ££££ 968 ZT9 COPELAND guHL Co Mary E. Belgarde Minneapolis, Minnesota We have compiled the accompanying personal financial and credit statement of Mary E. Belgarde as of June 30, 1991, included in the accompanying prescribed form in accordance with standards established by the American Institute of Certified Public Accountants. our compilation was limited to presenting in the form prescribed by the U.S. Department of - Housing and Urban Development (Form HUD - 92417) information that is the representation of the i,ndididual whose financial statement is presented. We have not audited or reviewed do financial not express statement an pinion referred to any other form n form ot accordingly, assurance on it. This financial statement is presented in accordance with the requirements of the U.S. Department of Housing and Urban Development (Form HUD- 92417) which differ from generally accepted accounting principles. Accordingly, this financial statement is not designed for those who are not informed about such differences. &tug, . 6 47�-, COPELAND BUHL & COMPANY August 14, 1991 LAMES W.COPELANOX.PA- DENNIS W. BURL C. PA TORYLAOANK.C.PA MICHAEL L BLAZEI. CPA WRRYLMcCREARXQrA T140MAS L MCH. C.P.A. BRAD S CERTIfIEUPUBUCACCOUNTANT5 800 East Wayzata Boulevard LEE C. HARREN. C.CA DARUJVE G OIN. CR. C•rA A. CPA M. SCIHN SELA f(A E M. SCHIVEIBEL C.P.Ar Wayzata. Minnesota 55391 (612) 473-0273 - 0273891 DENNIS G. PETERSON, C-PA. DONALD A. wMEN C.rA. DelBO 1EffREYD.DrBpER,CPA. IEFFRE LeVAUN HENDRIGKSON. CPA. MARxn.SCHNEIBCt , r.rA M A- S SUSAN K. IKUMMON. C PA TAX (612) STEVE N. ARENOT, C -PA. BRIAN D. LEE. C.P.A. PHYLLIS A. VRBA. C.CA. Member SLC section AICPA omsim for firm,. MARK IL LEITNER. C-PA (IlHT) NT 7E 1IM, 2�2!2 968 ZZ9 ' Personal Financial and Credit Statement U.S. Department of Housing and Urban Delrelopmenl 011109 of Housing -- Federal Hewing Commissioner Alle U. StAifMn1 0C.. ir holaat Munn _ lfumbgr .lien - -- - - - - --aringllrook Apnrt:me_ntR - Fridley, MinneeCta elagmanr of Dole A11d411 Mar E. Bel garde 6/30/91 2219 Platwood Road, Minnetonka, MN 55343 Asesis LfabllHtes and Nei Wolth Cash OR hand In banks 9slsnee Total (NAM@ M 00011for" Aeoewlis Payable S O00 Moles Payable a 15,970 Debts payable In lase then one year 110twof by awtppl en Nnd set 161 "Pq Debts payable In bee than one year 15 , 970 M'iwuNo +,f� Mnuf iaah�.pl r.MM Le. Accounts Aeeetvabta t Low Doubllul Aeesunls Nola@ Aseelvable ! Olhsf ounent Nsbllllles., 0maapo) Less, Doubllut Notes Stocks end 9onds — Market Value (SeAUub A — overso #de) Whet Curranl Asset#, preseesal Telel Cufrenl Llebltilles., s i , OOO Debts beyabls In more thin a+e 11 110. br two.pe an N,4 end Mr a1pJ Debts /yeble In more than acne year bo Oottot ma/rpoq or ~ seem l�w Total Cwrenl Aeeete I 15,970 F1411 Prooetly — M tell tsetfouto a — femme #Not other labllllha (dsleda• 1 Loans from Partner to Fund Mashfnery iqulpmeni end Rteturea .• .lnei Capital Contributions a 232,960 llh InlufenCe 1GaA Vow bee 1040101 344j960 othof Assets Notersel Deferred Income Taxes 112,000 Partnership Investments, 679,960 729,950 e.ILbnillee ''345,960 Personal-PropertZ, 500000 NN walh 399,960 Tolel Assets I 745 920 Total Liabilities and Nei Wotth s 745,920 'Carl, InOArdlne Illpraam/M1a,1610 "091611^ Accounts and Notes Receivable Patum n am la let aNallwo n of on»r type 0.1,11e001 Name Aad1aH maludly Dale Ameur.l type 1r,f,na O) Name Wool m0wir Dale Ameurl O. J. ,.- type M 01 Name AedHt/ M11vr"T ONI Amour% Ckew/►aunsls •W CYawnalaroal ties Madetd Ae10YM olaal tyt+l AMWM 0111111 Merry wffl n $goes It 'to I I.r... { 0 rgvah eRr�l.lf.'.orr, '' ••. malvflly ££££ 968 Z19 LoQ�I ProeoedG111 of per k st eeead" a Aere Nan henroled Of a►ohar. N a unndUlee pd n,relr ramaM on mead elfe his pggrl ' llaurlpllOn ,�, • I I Sehadula It Asia! Proeartu e.aea,. Afiete n..M..ee_ A fed f.'wunl 110241 Velva I N 11114d. Names fasrunge — Mr foie M re,r pr.1001-4 r-r Welton end-DemerlpIlon of Lend and Oultdln02 send Aos Original Cost MsrAsl Velus Assessed Value Morfgegsd Insured i • tolele Tl11e frog NL81pild egWrtea rnrt a eaprass a Hulse, s ese►I Location of 112111 Preporly Bank andfo� Trade Refsrtinoea . • • Name and Addre11e ' Name of THIS Holders I hIs sb cat lend at life CoReel elrowlne of rW ny (tei+e16 rnoonrlis eonlai of this oae omitted 10 obtain moAQape 1n11u►ance under the National Houelno Date u2 Werntn0 .e. Crt al Cade, eeotfon wo,'fnt I f, U.a•D„ "Fsdsrel Havolne Adminfelfallon IreneaoitOna ", pMVId22 In peril - Whos+•, for the purpo+a e1 ... In' flusnalnp In enrway IM rellon of euoh AdminUltatlon , , . tn2kes» psssee, allere, or puAllehss anY elelemenl, knowing the eeme to bs isle•, ... eh.e b. fNed net rnae tAen fS,000 or knprle0ned not mat iMen Iwo rssn, or both, fj '011 /H: 9 I 'ZS /LEA: 91 16 Z I (Ei) N1wli Nmiolul h IM'I WOU . ££££ 968 ZT9 CguHj D � Co e o t of Inde a dent Certified Public Accountants Belgarde Family limited Partnership Minneapolis, Minnesota we have compiled the accompanying personal financial and credit statement of Belgarde Family Limited Partnership as of June 30, 7991, included in the accompanying prescribed form in accordance with standards established by the American Institute of Certified Public Accountants. our compilation was limited to presenting in the form prescribed by the U.S. Department of Housing and Urban Development (Form HUD - 92417) information that is the representation of management. We have not audited r I downo texpfinancial s an opinion or any other form above and, accordingly ► of assurance on it. This financial statement is presented in accordance with the requirements of the U.S. Department of Housing and Urban Development (Form HUD - 92417) which differ s from generally accepted accounting principles. Accordingly, not designed for those who are not informed about such differences. ��zn� lrfjffi,61�� COPEIJWD BtM & COMPANY August 14, 1991 NZY E MT110 ? ££££ 968 ZT9 DAMES VIL COPELANO. C-PA OENNIS W BUHL, C•PA MICHAEL L "Et, CPA. THORMAS L rESCH. C.PAA BRAD w SCHLATTLK C.PA CERnnED PUBLIC ACCOUNTANTS S00 East WdyiACd Boulevvd 800 East Mama B 55391 LEE C. HARREN. C-PA DENNIS0.PEfERSOC.CPA DARLENE C. BIAZEK.C.PA SCOTTA GROIN. C•PA KATHLEEN M. SCHNEIDEG CS k MEYD.DcBOEkC.PA MARK ILSCrINEIBEIC.PA CPA ffVALIN (611)473.0273 DONALD A. WEBER C.M. HENDRICKSON. C.PA IHY Lt A VRB C. A FAX (412) 473.3891 STEVE N. ARENDT C.M. BRIAN D. LEE. C-PA Mcmbe SEC yecnm AICPA eMabn 1w bmi, MARK R LERNER. C-PA NZY E MT110 ? ££££ 968 ZT9 Personal Financial and Credit Statement roteat Name . Narnb PS rrin rirook Apartments _ slatownsm of Bel or Family Limited Dole par? Assets , oershi Cash on hand In bank& Balance total (Vann er fopttasry) Aaeeunls "makable Lass: Doubtful Aommla Notaa Aaeahable Loss: Doubtful Iloilo BIOCAe and Bard# " Markel Value fleAeerN A — Nests eMr) Other Cullom Assets: Nosenae) Total Ourtont Assets final Property — el net' Jsaewhrrt a .. toVo.et eprt) Meehtnory Equlpmenl and Flalures » N net Life Insuronos rCnA Volvo be Anne) s 6,000 d 1 r-- U.S. Oapartmont o1 Housing and Utban Development Ofllae of Housing -- Federal Housing Commlosioner OMB No. 25020001 (Enp, 6-X86) Los~ Fridley, Minnesota Addroso '-- 7841 Wayzata Boulevard, Minneapolis, MN 55426 Llabltltlas and Net Worth Accounts Payable s NOW Payable I Oobla payabts in lass Than data >raa► theater !y taarppe an goer one' ar+w,,,t) Debt& payabta In fade than one y.at (aea,#ne; ti aharrol MaA rape M ww 40 8 t 1 000 Other current MabMIller.,etoerby Total Current Llabitlllss: I _ Debls vsyabla In more Men ens ar Mew by msKredel an hnf VW Wfted Dabla payabb In nW@ Ih &n ens "at Ina aulyby altornr rartpr„ a elect Yens s 6,000 Other pabintfaa art#ernt) Loans from Partner to Fund Capital Contributions s1,047,450 Other Assets Ahtensq Partnership 1,047 450 Investments s 1, 089 , 450 Total Llabliltlta t ._ 1,089,450 Nat Worth _ 48,000 total AsW& : 1 095 450 Total Llabllllles and Net Worth ' 095,450 1061, tnokanng haperaMMe, lose dnpreelatlen. , Accounts and Nolen Aecelvabta P,rtna in smooloo m nway s IM a care r type r►,d,na0r Noma Addlele MMarlly ome An.wM type p,a,AaOl Nana Atieren ' Molvmr ONt Ampl,nr Us tntwante i faro Value Della uenclea type utblllly Aeraont allosmetaffloo type Ubl+nly Amount Caewnslanets 1,pe Llnbelly Amaw" oobaam#ltnae# r ' Accounts and NnIns ;AwAhla IMMAnwor Memo AANtH Affdwm MHy.lry able .— MR /,AaoOJ Htme eta Amawd M4110,111 claim 11M Hedged Amount Otlulling uebtuly r Ip+e fledged Amato OI eat" uebtaty Nero' 11 plan opoe# H reeubrd uro 1 erpuou #hoot It jopN, rtnpintrgFMA24 "fit ichfsdb�rlolgG- � K^ � :,- :- .�IUU61!IT s51 I • - (See'Ind�pdnt r�nxr,lt�tt8`•St Compilation Re Ort1 1_n._ X4'tt__v "�;r - ££££ 968 Z19 Legal Proci0 'R pf e"L)vper Pffff# Ornee M►r Ee►n hIILIV .d 0► lrfenerl,Wf Mr eNNtr /hd Awpn►nII n.nNn ew n,gel /, h► b/ da,ar! Schedule A -- Slocke end ponds OaerrfpUen Cvnenf Arulel Yplve 11 1,1811-1. No E.rMnae fH ed► eM l,Urwpe I I Schedule B Reel Pranaffiv e.m..r.I,r..r. Location and Oescrlp {Ion of lend and Widinge Owned Ape Original Coil Merkel Value Aaaeseed Velua Mortgaged For.— Insured •� for -r __„Y TOWN TIUe ItRe Nq.r end squ nebl► drh a.a'Ier•1 of Me ebore•deAcrl.elf PRO sha N figIfIr N ±m►, ae►f1 n IonetLL— _...._� Lo041lon el 11041 Property Nome of Title NOldels Unit An(If0f Trace tyerere —, Name and Address Aceeunt Numbers Ace, hereby Certify d at t a coa0o1 eT+olwlne c d e sislal ents con aenedf her daub milted to obtain mortgage Insurance unda► the Nallonel Housing Na ONe Mf�/ / War V•0, r! not Oods, sacs on f0, T11ta 11, U.B.O. "fedarsl Houaing Admtnlalrellon 1rMesollone", plorldaa In PafI: "WhDo"' for Iha putpo,e at ... In• No Ing In an way the action Of suoh AdmIn111ra11on ... makes, paelve, ullars, or publlehee any Halemanl, knowing the acme In be Isles, ... shell be famed not more than M of ImP►lsonad not mete than two yaefa, at both." VA ££££ 968 ZI9 612 896 3333 �1 -Personal Financlal and Credit Statement N,wrat PleJect NMn1 Spri.ngBrook Apartments slefemenl of Data Leon E. Martin 6/30/91 Assets Cash on hand In banks Balance Total (Name of oelf94) ,i ql ufi. 100 t 4r • 1 4 U.S, Department of Housing and Urban Development office of Houslno — Federal Housing Commleeloner OMB No. 2S02=1 (Eip. 690881 at an Fridley, Minnesota Adonea 9404 .High Meadows Drive, Blackhawk, SD Accounts Payable Note Payable Debts payable In Isle than one year (eecund ay mortgagee an )an0 and Iu(ephfgU petite payable In leas then one year 100 ff161� �r d'auor meno,pee er other Nsn, Accounts lleoalvable : s Less: Doubtful Accounts Noise Recelveble t other current llebllNles: (deaeribs) Less: Doubtful Notes _ Stocks and Bonds — Market Value (Schedule A — rerarte erdel Other Cyrrent Assets: (doea►be) Total Current llablllllee: Debts payable In rr►ore than one of k"und l' mongegee am tend and 00001) kChedule B Income Tax Refunds t 2,790 Debts payable In more then one year � aeon"' Me"'opea or sMa Iten1 ((V 29790 see Contract for Deed Total Current Assets, A 2.890 Psal properly — M net• other nabllttles Mescoo) loans (Sehedrr ►. a -. r..erso am&) from Partners to Fund Machinery Equipment and Flsturee — vehicles 12,000 Capital Contri�buti-ons t 562,060 at not Life Insurance (Cseh "hit weerIben#) 3,000 Deferred Income Taxes 239,000 other Assets (daerrb") Totaf uabulltes artnership Investments t 9276150 ersonal Pro ert 46.000 973,150 Net worn Total Assets t 1 131 IL040 Total 1.1e6111tlee and Net Worth •Con, Including Impr6r6M016• 1006 1101e101", Accounts end Notes Recelvable PMnar lmploy 6 M Re1611w (M Or onset W Type (P.E.Aoro) Noma 1I Addnee Melur4y Data Type (P,&Aor0j Name Address metrMr Cato iyba (P,E,RaYV) I Rome Life InWran" DeIIn UenC� I @e type 1.1011ey Type uabfely Type (P.E,norO)• Name Other iCharles_P. Belgarde Type (P,E,A or 0)*1 r16ma Is Valve Afsataee . H' n neapol i s,, MN Adds et 200 ! 1,000 77.200 t 78,200 15,120 t 154,860 = 1,131,040 Amount Tw Pledged Type Pledged Amount ollaatlfng u6blilly Type Pledged Amount 01 along Usbnlly Noier it men soeee is ""red Use a eetoret► 6eter or porter. HUD•93417 (44S) rannfnt�lle FHA -2417 whlCh Is obsolete, _ 24 ern 7oo.143 ` CQPELAND Bu H Co Report of independent Certified Public ACcountel.nts Leon E. and Connie C. Martin Minneapolis, Minnesota We have compiled the accompanying personal financial and credit statement of Leon E. and Connie C. Martin as of June 30, 1991" included in the accompanying prescribed form in accordance with standards established by the American institute of Certified Public Accountants. our compilation was limited to presenting in the form prescribed by the U.S. Department of' Housing and Urban Development (Form HUD - 92417) information that is the representation of the individuals whose financial statement is presented. We have not audited or reviewed the financial statement referred to above and, accordingly, do not express an opinion or any other form of assurance on it. This financial statement is presented in accordance with the requirements of the U.S- Department of Housing and Urban Development (Form HUD- 92417) which differ from generally accepted accounting principles. Accordingly, this financial statement is not designed for ,those who are not informed about such differences. COPELAND BUHL & COMPANY August 14, 1991 CERTmED PUBLIC ACCOUNTANTS PA DAMES W. COPELAC.P MICIIAELY 91NAAZEI. C-M TKOMAS C PESHRC -PAL 800 East Wayzata Boulevard , DENNlSV,r ouHl C.PA. LEE C. HARRLN, C.PA. DARLENEC.OLA2EK C.I'A SCOTT A. BR01N. C PA BRAD W.SCHU1T TER. C.TA KATHLEEN M. SGHNEteCI. G Wayzata, Mint+eSOta 55391 ((612)473-0273 DENNISG.PETERS0N,C.PA DONALD A. wEOER, C eA. EFIREYD.MISOULC -PAL MARK P.SCHNCIBEL,C.PA f VAUN HENORICII_SON, C.PA SUSAN IL IHOMPSON, C.f!A. iAX (G I Z) a73.3891 STEVE N. ARENDT, C.TA BRIAN D. LEE. CPA PHYLLIS A. VRBA. C.PA Member StC aecmn AJCPA dv%N n f« firma NARK R LEITNCR, C.PA 'd O I t Ec l OAGt' 1011 !cd 9 i 'ZS ; %G (,Mi) NIA79, k'Vjj� OF, !1 T ' 7 22£€ 968 ZZ9 HOUSING AND REDEVELOPMENT AUTHORITY THURSDAY, DECEMBER 12, 1991 7:30 P.M. PU3LIC COPY • CITY OF FRIDLEY AGENDA HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, DECEMBER 12, 1991, 7:30 P.M. Location: City Council Chambers Fridley Municipal Center 6431 University Avenue N.E. CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: November 14, 1991 ACTION ITEMS: CONSIDER AMENDMENT TO DAIRY QUEEN LEASE 1 - lE CONSIDER PROPOSED AMENDMENT TO SECOND MORTGAGE FOR SPRINGBROOK APARTMENTS 2 - 2G CLAIMS AND EXPENSES 3 - 3B INFORMATION ITEMS: DISCUSSION OF TIF POLICIES 4 - 4H STATUS REPORT ON HOUSING STUDY 5 STATUS REPORT ON 1992 BUDGET PREPARATION 6 STATUS REPORT ON NORTHEAST QUADRANT 7 REPORT ON ECONOMIC DEVELOPMENT CONFERENCE 8 - 8F STATUS REPORT ON WAL-MART DEVELOPMENT 9 - 9A UPDATE ON RICE PLAZA 10 - 10A OTHER BUSINESS ADJOURNMENT } CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 14, 1991 CALL TO ORDER: Chairperson Commers called the November 14, 1991, Housing & Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, John Meyer, Duane Prairie Members Absent: Jim McFarland Others Present: William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Paul Hansen, Accountant Jim Casserly, Consultant Jim Hoeft, HRA Attorney Mark Rasmusson, McGlynn Bakeries Terrie Mau, Cinnamon Skin Tanning Salon Chris Wallace APPROVAL OF OCTOBER 24, 1991, HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the October 24, 1991, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 AND ESTABLISHING PROPOSED TAX INCREMENT FINANCE DISTRICT #12: Mr. Casserly stated that this is a draft Tax Increment Plan. There are some small changes that need to be incorporated into the Plan; however, the changes are relatively minor and are underlined. He reviewed the changes with the HRA. Mr. Casserly stated that this plan is very similar to plans adopted by the HRA in previous years. This plan fits into the total development program. A lot of the language in the plan is designed to meet statutory requirements, so some of the language is broader than what is being contemplated in this specific project. A tax increment plan outlines the powers the HRA has and will almost HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 2 always be broader than the specific project which allows the HRA some leeway in the event there are occurrences the HRA has not anticipated. The development agreement is the contract the HRA has with the developer for the project, and the development agreement lays out the very specific terms for a specific project. Mr. Casserly stated that this note is exactly like the note the HRA has on Lake Pointe. They only pay the note when the revenues are available, but when the revenues are not available in the first several years, that interest is accruing and being added to the principal. Mr. Commers stated his only concern is that the monies that are being contributed through the State Economic Recovery Fund is really a separate transaction, albeit coming to the HRA and the HRA forgiving those funds in terms of repayment. He did not understand why that should be included in the fund when they are talking about the total Bonded Indebtedness of $1, 125, 000 when it should really be $250, 000 less than that. Mr. Casserly stated they did not actually change the total amount of Bonded Indebtedness from the numbers given to the HRA previously in the agenda. The reason for that is that the number they were using before was $800,000. They are not going to create any more bonded indebtedness, nor are they going to pay any more capitalized interest. All they are doing is meeting the statutory requirements of showing how the monies received would be expended. They could break that out better, because the public could perceive that the entire amount is coming from the HRA, and it is not. That is why he does not put specific numbers in some places. He is assuming it will come in at $250,000, but he does not see it being any more than that. The amounts put in the budget are all high. They always make the budgets higher than any number they would use in their development agreement. The reason for that is that if something doesn't take place for 3-4 years and they have the effect of inflation, then they do not have to amend the budget in order to make certain expenditures. Mr. Commers stated there is probably no need to discuss that any further, but it does seem a little misleading to the general public. Mr. Casserly stated the existing building is in two school districts so they have to make assumptions on what the valuations are going to be in each school district when it is improved. This creates some technical problems. One of the parcels (owned by the City) is essentially a ponding area in the northwest corner adjacent to the railroad tracks, and that parcel is not in the tax increment district. The reason it is included in the project area is because they will probably have expenditures in that parcel that the City owns. In order to allow the HRA to make expenditures, it • HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 3 has to be included in the project area. That is why the project area is slightly larger than the tax increment district. Ms. Dacy stated this stormwater pond collects a lot of the runoff from the general area. When this pond is at capacity, the water flows back into the Totino lot. Mr. Flora, Public Works Director, is evaluating the construction of a storm sewer connection from the rear of the property into an existing storm sewer over to the west and then directed down to the south. Mr. Commers asked why this ponding area is not included in the tax increment district and pay for it off increment, rather than having it separated out. Mr. Casserly stated they can spend money as long as the parcels are included in the project area. Mr. Casserly stated that if the Tax Increment Plan is acceptable to the HRA as amended, by approving the resolution, they are recommending that the Council create the tax increment district, approve the plan, and amend the development program and the existing districts. Mr. Commers asked Mr. Rasmusson to give a general summary of McGlynn's plans. Mr. Mark Rasmusson stated that on behalf of the McGlynn family, he would like to say how excited they are about coming to Fridley. They appreciate the accommodations the HRA, City Council, and Planning Commission are making to help them with their project; and they are proud to become a part of the Fridley community. He also wanted to compliment the professionalism of the City staff, who represent the type of city that McGlynn wants to be a part of. Mr. Rasmusson stated McGlynn Bakeries has been a very fast growing business over the last few years. They have gone from $60 million in sales four years ago to $180 million in sales this December 1991. They are the largest croissant manufacturer in the United States. Because they are growing so fast, plants change rapidly. They currently have two production facilities in Minnesota, one in Eden Prairie (15 years) and one in Chanhassen (2 years) . Basically two production facilities share one building in Eden Prairie: the retail division and the frozen products division. The frozen products division is growing more rapidly than the retail division. The Chanhassen facility supports the frozen division. Mr. Rasmusson stated that because they anticipated running into more capacity problems at Eden Prairie last spring, they started looking at expansion possibilities. One was a bandaid, stop-gap, measure in Eden Prairie where they would buy the warehouse they currently lease and use it for a variety of purposes. Because it is a warehouse and not a food processing plant, it would be cost HOUSING & REDEVELOPMENT AUTHORITY MEETING. NOV. 14, 1991 - PAGE 4 • prohibitive to turn it into a full fledged bakery. They began exploring going out of state, particularly southeast, perhaps North Carolina. Before they got too far into that, the Totino's plant became the focus of their attention. Mr. Rasmusson stated the great thing about the Totino's plant is that it is a good food plant, and the basic structure is sound. It will cost about $4.8 million to rehab it before they can put their own equipment into it. The plant was also attractive because of the distribution issues and business climate issues. They plan to move into the plant by the fall of 1992. This will be real boon for their retail division, because it has been at capacity for about 5 years. Now with a new refurbished plant, they can start looking at other business opportunities with their retail division. Again, they are really excited about coming to Fridley and the opportunity this plant is going to have for them to invest in new opportunities for the retail division. Mr. Commers asked Mr. Rasmusson to talk about the number of employees that will be coming to Fridley and what they plan to do with the plant in Eden Prairie. Mr. Commers stated that, over time, they will be taking out most of the retail plant production equipment from Eden Prairie and moving it to Fridley. The bulk of it will be moved by the fall of 1992. As far as employees, they have not yet surveyed their employees as to who would like to make the move to Fridley. They are looking at approximately 200 employees moving to Fridley initially. That initial phase would include retail production, retail divisional offices, big stock division (internal supply division) , and a bakery outlet store. Most of those employees will be current McGlynn employees; however, there will be the opportunity for a lot of new hires, because of future growth plus about a 30% turnover that they have experienced in the last three years. Mr. Prairie asked Mr. Rasmussen about the employee capacity at the Fridley plant. Mr. Rasmusson stated he believed they can be here 25-30 years and not run out of space. They may be at 80% capacity once they get everything moved in. That would be approximately 250-300 employees. The next step after that is to move the big stock or supply division to a nearby warehouse. That would increase their floor space for production by about 40%. They don't anticipate any more parking spaces than are on the site right now, but they are buying an additional acre from Pillsbury and working a lot split so they have an additional acre for future parking and which would also allow an approximately 20,000-25,000 sq. ft. addition on the north side of the building. 1 . HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 5 Mr. Commers stated the HRA is also happy that McGlynn Bakeries is coming to Fridley, and they hope they are here for a long, long time. MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve Resolution No. 6 - 1991, "A Resolution Modifying the Redevelopment Plan for Redevelopment , Project No. 1 to Reflect Increased Geographic Area and Increased Project Costs within Redevelopment Project No. 1 and Modifying the Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 11 to Reflect Increased Project Costs within Redevelopment Project No. 1 and Establishing Proposed Tax Increment Financing District No. 12 and Approving and Adopting the Proposed Tax Increment Financing Plan Relating Thereto", as amended. UPON A VOICE VOTE, COMMERS, SCHNABEL, PRAIRIE VOTING AYE, MEYER ABSTAINING, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. 2. CLAIMS AND EXPENSES: a. Check Register (2172-2178) MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the check register dated November 7, 1991. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. APPROVAL OF 1992 MEETING DATES: Mr. Commers stated the dates as proposed are the second Thursday of each month at 7:30 p.m. MOTION by Mr. Prairie, seconded by Ms. Schnabel, to approve the 1992 meeting dates as follows: January 9 July 9 February 13 August 13 March 12 September 10 April 9 October 8 May 14 November 12 June 11 December 10 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. UPDATE ON RICE PLAZA: Mr. Commers stated this is an update on the Rice Plaza rents and is for informational purposes only. OUSING - PAGE 6 REDEVELOPMENT AUTHORITY MEETING NOV. 14 1991 PIE 6 CE 5. T TER FROM JIM KORDIAK REGARDING EVICTION OF R TER T' that the HRA evict Kordiak is suggesting perhapsict Mr i ment and I: Te ie Ma stated namothat Mr. and otiated an agreemenn with Te l Mau a Cinnamon Sst Tan neg ti the eau mtiNow seekMs. u legal action. He to theagreement. want Mau in May 1991, but she has not lived up it is up to the HRA to decide what source of enforcement they to pursue. ening• d Ms. Mau to tell the HRA what has been happ Mr. Comers aske opportunity to speak to the HRA. Ms. Mau stated she appreciated the is now time to plead her own business so the o not only can understand statedtan herit She stated h understand situation. livelihood, er but is a goal she has had for some time. purchased she Ms. Mau stated that when she purchased the business, but that obviously that was not the intention of good faith; That led to the it in owner business across the rom. the former the person she purchased the businessoened a The main soource of oofnincome situation where and took er employees.work for her,streetnh from stylists who In trying tot in o e business is the as income made it very difficult for her business. at to do, she consolidated into one location had already gone opposede out what By that time, a large to two. into arrears. good faith she made a into he HRA with the idea thata she increased her moving Ms. Mau stated that since that time, agreement with therefore, would at hiring stylists.c a new location and, opportunity to a new substantially because of a better This has n't happened, and she will not be relocating development. that the uncertainty of redevelopment of the Rice PlazaMs Mau estt difficult for her to hire stylists because of the the only uncertainty makesy it hIn her particular business, build a ncertainty of the building. clientele. She can't way to survive is build a uncertaintyy for a location take the chance that she wll not be in this loca ion clienteleto and They have lived with this in six months. person who leases part year. has ht in another person who does part of Mau stated she has also brought in n an therHowever, she cannot wrapping her space. alsoShe part of her space. in survive who leases She needs to be able to expand survive on those small a smargin. order to increase that profitthis go on intention of not letting a situation forever,Ms. Mau statedbu she has every how to rectify situation ion but she cannot tell theanK fetter given the problems gettinge ement withshe haseat she does articulares site. She did work out an agreement at this p HOU SING & REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 7 Mr. Burns in May 1991 that she thought she could han dle. dle. The reason she had to come to Mr. Burns was because she could not get an agreement with Jim Kordiak. This is a problem, not only for herself, but with other tenants in this building. She realized the HRA hired Jim Kordiak to manage this property with the very best of intentions, but it is very disconcerting for her and other tenants to see tenants leaving the building because they cannot come to agreements or work out problems with Mr. Kordiak. One thing that has troubled them is the fact that all but one of the businesses are owned by women. They feel they are not being treated fairly by Mr. Kordiak. Ms. Mau stated the tenants are having a difficult time in this building. The rents they were paying when that building was purchased by the City were probably adequate at that time for that particular situation. Now, the rents are far too high for the problems they are being faced with on a day-to-day basis. The general feeling of the public is that this building is coming down and why start doing business there. This presents a problem for the tenants and for herself especially because her business is very service-oriented. With more and more tenants moving out of this building, it makes it even more difficult to bring in new business. Rapid Printing will be leaving the first of the year. Metz Bakery is leaving this month. She cannot survive if the building does not survive. Ms. Mau stated that for these reasons, she decided to come before the HRA to see if some kind of arrangement can be made for that building. She stated she is doing the best she can, but it is up to the HRA to decide how they want to handle the whole situation. Mr. Commers asked if Ms. Mau had any suggestions for the HRA to consider. Ms. Mau stated she would like the opportunity to manage the property, because she believes the building needs an on-site manager. She is there every day and is accessible to the other tenants. She does almost all the snow shoveling now for the building because she is there and because she is the only one who has access to leave her business during the day when it is snowing. Ms. Mau stated she has never managed a building before. She stated she believes she manages her business well. She is a single parent raising a daughter alone. She handles her finances well, but she cannot handle finances that do not exist, and she cannot handle a situation where there appears to be no solution. Her business is not failing. Considering what she has been up against for the last year, her business is doing well. It has been a very difficult year for her. Ms. Schnabel stated she finds it difficult to understand why Ms. Mau has not been making some attempt to make some type of payments. HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 8 Ms. Mau stated her main reason for not paying is that if she cannot pay all of it, it might as well not be any. Ms. Schnabel asked if Ms. Mau has any solution in terms of the debt. Ms. Mau stated that if the HRA would settle the debt 50 cents on the dollar, she would find the means to pay the debt now. Then she would like the HRA to lower her rent, because the high rent is a problem and does not give her the opportunity to grow. She stated she would like to stay in the building so it does not become an empty building. Ms. Schnabel stated it might be difficult for the HRA to negotiate a reduced rent for Ms. Mau, as it would set a precedent for other tenants in the building to have their rent reduced. Ms. Mau stated her rent is among the highest rents. She believed almost all the other tenants who want to stay in this building feel their rents should be reduced. Mr. Meyer asked how Ms. Mau felt her replacing Jim Kordiak would improve her situation. Ms. Mau stated she did not know whether or not her business would improve, but she does care more about this particular site. She cares that the building is occupied because she has a vested interest in the building. She believed the other tenants will feel more secure if the property manager is on site. Mr. Comers stated they have heard Ms. Mau's background and information. He stated the HRA should take this information under consideration and staff can let Ms. Mau know of any decisions they make. Ms. Mau thanked the HRA for their time and consideration. Mr. Hoeft stated that with respect to Mr. Kordiak's letter in which he suggests seizing the property, he wanted the HRA to know that they are not first in line on the security interest in the property. Northeast State Bank has an interest; therefore, if the HRA wanted the tanning beds or other equipment, the HRA would have to pay off the value of that equipment to Northeast State Bank. Mr. Commers stated what concerns him the most is what is going on with the building as a whole. They are losing tenants. They recently lost two tenants, and now it sounds like two more tenants are leaving, one of which is a major tenant. He wanted to know what is causing the tenants to leave. Ms. Schnabel asked who is setting the rental guidelines. HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 9 Mr. Burns stated he believed they have periodically renegotiated the rents, and basically it is what their leasing agent feels the space can be rented for. He believed some of the renegotiations have taken into consideration the situation the building is in, and there have been some substantial reduction of rents for different tenants with his consent. Mr. Commers stated that if they are losing tenants, then they have to get the rents to the point where they can attract new tenants. Mr. Burns stated there are also some substantial repair costs to a number of tenant spaces. It will cost about $10,000 to renovate the tenant space that Norge Village recently vacated. Mr. Commers suggested authorizing staff to look at the leases and the rents, and then check around to see what rents are being charged in other shopping centers in the area, such as Moon Plaza. They also need to know what condition the tenant spaces are in. They need a comprehensive, total analysis of the total situation so they can put together some plan to rescue or rehabilitate this building. The HRA members agreed. Mr. Burns stated they should also have Mr. Kordiak respond to the issues raised by Ms. Mau. Ms. Schnabel suggested they talk to the rental manager for Moon Plaza about the possibility of being a rental manager for both shopping centers. 6. OTHER BUSINESS: a. Fridley Dairy Queen Mr. Hoeft stated he received some paperwork from Mr. Fitch's attorney, and Mr. Fitch's attorney has made a motion to the court which is scheduled for the following Wednesday, November 21. They are asking for two things in the motion. One is that the time period for which to have the Commissioners report back to the court be extended. That has been done informally, and he indicated to Mr. Fitch's attorney that the Hearing was rescheduled for the latter half of January. So, that issue has been resolved. The other thing is they are requesting that the court release the $125,000 that was placed on deposit in District Court based upon the approved valuation at the start of the quick-take proceedings. Mr. Hoeft stated he indicated to Mr. Fitch's attorney that he would have to discuss this with the HRA; but in his consideration of the situation, they had two options when they HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 10 began the process: (1) to pay the $125,000 directly to Mr. Fitch, or (2) to deposit it with the court which places it in an interest bearing account and the petitioner can petition to have it removed. Mr. Hoeft stated the HRA chose to deposit it with the court. It was his recommendation that the HRA not oppose the motion for Mr. Fitch to withdraw the money from the District Court, the situation being that if the settlement figure or the Commissioners' award gets determined is in excess of the $125,000, then obviously the City pays the difference. If it is less than the $125, 000, then that would have to be refunded to the City. The area of concern comes if it is less than $125,000. From the numbers that have been talked about with the HRA's appraiser regarding property value and relocation assistance, he did not believe the award will be less than the $125, 000; and, therefore, he did not believe the HRA runs the risk of trying to recover funds back from Mr. Fitch after it has been released back from the District Court. What argument do they have to ask the District Court to hold on to the $125,000? Ms. Dacy stated Mr. Fitch still has not signed the lease. She suggested that they ask the Court to hold on to the $125, 000 until the lease is signed and the rent paid to the HRA. Mr. Commers stated another argument to use is that they do not know what Mr. Fitch's appraisal is going to be. It could be lower than the City's. It was the consensus of the HRA that the $125, 000 not be released until Mr. Fitch signs a lease with the HRA, pays the rent due since July 1991, and submits a copy of his appraisal. b. Target Parking Ms. Dacy stated that at the last meeting, the HRA asked the question of what was the mechanism that the Target Northern Operations Center used to pay rental payments on parking. Ms. Dacy stated Rick Pribyl researched this and said that Target purchased a U. S. Treasury Bond in the name of the City of Fridley, and the interest payments on that on an annual basis represent the payments in lieu of rental payments on the parking lot. c. Second Mortgage on Shorewood Ms. Dacy stated that in answer to a question raised by the HRA, payments on that began as of October 30, 1990, and Shorewood did make the first payment. The second payment for the second year was due October 30, 1991, and Shorewood have not make that payment. Mr. Pribyl has been in contact with I HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOV. 14, 1991 - PAGE 11 the owners of Shorewood. There is also a 5% penalty charge for late payment. d. Municipal Liquor Store Mr. Commers asked what the rental situation is with the liquor store. Mr. Burns stated the City pays the HRA approximately $22,000 per year to rent the liquor store. Mr. Commers asked staff to look at the lease the HRA has with the City for the liquor store to find out what the terms are and the amount of the lease. ADJOURNMENT: Chairperson Commers declared the November 14, 1991, Housing and Redevelopment Authority adjourned at 10:05 p.m. Respectfully sub 'tted, Ly Saba Recording Secretary 1 . RL Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 6, 1991 TO: William Burns, Executive Director of the HRA FROM: Barbara Dacy., Community Development Director SUBJECT: Consider Amendment to Lease Agreement with Dairy Queen Don .Fitch, owner of the Dairy Queen, has requested an additional amendment to the lease agreement approved by the HRA on September 12, 1991. The proposed amendment to the lease concerns item #8 regarding the work which needs to be done by the HRA to revise the drive-through traffic as a result of the Mississippi Street improvement project. During the negotiations for the property acquisition, staff indicated that because the HRA would own the property, it would be responsible for changes to the operation of the drive-through as a result of the Mississippi Street improvement project. The drive- through revisions are necessary because a median will be constructed across the intersection of the frontage road and also the eastern-most driveway into Rice Plaza will be closed. Therefore, traffic using the Dairy Queen drive-through would not be able to go westbound on Mississippi Street because of the median at the frontage road intersection. The proposed plan to handle this alteration was discussed in late 1990 with Don Fitch when the HRA authorized the acquisition process. The revision entails moving the accessory buildings at the rear of the property, reducing the grade between the Dairy Queen and Rice Plaza, and creating a paved driveway to the rear of Rice Plaza to the newly constructed 3rd Street. Also, the entrance to the drive-through would change from the frontage road to entry from the Rice Plaza property. • I met with Don Fitch and reviewed the proposed alterations in detail. Fitch indicated that if the Mississippi Street improvements are not completed by July 1, 1992, he stated that he would not need the drive-through adjustments to be made. He stated that he hopes to be in a new location at the termination of the lease in November 1992. The HRA may want to consider doing the improvements anyway if it intends to re-lease the building prior to a redevelopment project occurring on the site. 1-A Consider Amendment to Lease Agreement with Dairy Queen December 6, 1991 Page 2 Fitch stated that he would be responsible for relocating the order board, realigning the entrance into the drive-through from the Rice Plaza property (including timbers and rock) , and he also volunteered to move the dumpster, fence, and barn, leaving the HRA responsible for the pavement adjustment at the rear of the property and the pavement along the rear of Rice Plaza. Fitch indicated that he would need directional signs at the 3rd Street entrance at Mississippi Street, and he would be willing to pay for installation and operation of the signs. Maximum costs of the pavement is estimated to be about $5,000. It may be less depending on how much of the existing pavement to the rear of Rice Plaza can be utilized. Recent information from Anoka County is that they are still intending to construct the project for 1992. They are proposing a March contract let which would mean April or May construction. The proposed revision suggested by Fitch is as follows: 8. The lessor shall make any necessary alterations to the said property in the manner necessary for the lessee to operate and conduct his drive-through business. Jim Hoeft is now reviewing the proposed language and will be prepared for suggested language to the lease at Thursday's meeting. Recommendation Pending the appropriate language to be developed by the Attorney's office, staff believes that the proposed drive-through realignment is necessary for operation of the property and that the HRA should agree to the proposed amendment. NOTE: Fitch is current with rental payments (see attached) . BD:ls M-91-875 L s,) L__ _ _1--I_.,__tc)_I-ra7.)-' ir..r7) _1-B II L1I] I I ij I I L r, , 1 --- --- k r--- I _ L.. - Ei co' L J c — i - --- —. _ - -- • ) '11 S . .\t-- L ,, r" 1 --— ti 9 j : .v I1 I , I ) :L ) d E I I P / II t 212j ti •c•— t I / m a Ct I eis\J / 1,2 b A► _ 1 1 ;D. & ---f .0-, ‘ c V/ 4 `y s4 ,„17. . . . . 1 „ 03 L `� LL 5 rag 2 � H V) LeJ i .r,d .CL 2 � it W c r� hI ; Glw••� �J b'� °: < N 'I ' •, I I-I �� 11, ]� \ E W 00 t<n 1t= •�. r , Lam, SN WZ O ,1 .J W H I '°I Or N Ia �- • ) r,� < g •(1 . a. t • 612 780 1777 . FROM BARNA GUZY LAW MPLS. 8.30. 1991 13:30 P. 5 14; executed certificates of insurance shall be delivered to Lessor prior to the commencement of Lessee's occupancy hereunder and renewals thereof shall be delivered to Lessor at least thirty (30) days prior to expiration of the respective policy terms. 8. The Lessee consents to allow the Lessor to make any sax alterations to the said property in the manner "l: / neces y necessary for the Lessee to operate and conduct drive-through business. `` �� 9. Lessee covenants and agrees that he will make no structural change or major alteration without the Lessor's consent, which consent shall not be unreasonably withheld, provided that the proposed improvements are consistent with the use of the property, do not significantly reduce the value of the property and do not violate any local, State or Federal laws, and without first furnishing the Lessor with five (5) days advance written notice outlining the proposed changes or alterations. Upon the city consenting to the alterations, then the City will issue all necessary permits without unreasonable delay. The Lessee further covenants that it will promptly pay for any alterations, repairs or maintenance made to the demised property so that no mechanic's liens will be filed against the property. In the event a mechanic's lien is filed, the Lessee shall have twenty (20) days to pay or in the alternative to post 1-1/2 times the lien amount with the district court in order to contest it. Failure to do either of the above mentioned lien corrections shall be deemed as a default under this Lease. In any event, the 1-D BGS SHARON L.HALL ROBERT A.GUZY • THOMAS L DONOVAN RICHARDRHARDA STE EN PAMELA M.HARRIS ROBERT C. MERRILLNES CHARLES M.SEYKORA ICH C. .BEENSES WILLIAM M.HANSEN R h.. TS JOAN M.THIEMAN RONALD B. JENSEN Barna Guzy & Steffen Ltd. DANIEL D.CANTER,JR. JEDFFREY S A.HNSONNSEN f f BEVERLY K.DODGE RUSSELLE SH. ATTORNEYS AT LAW GREGG V.HERRICK IN . ICS CROWDER JAMES D.HOEFT ION P.ERICKSON 400 Northtown Financial Plaza JOAN M.QUADE LAWRENCE R.JOHNSON SCOTT UADE DAVID A.COSSI 200 Coon Rapids Boulevard STEVENOTTM. EPAKEY MICHAEL THOMAS P.HURLEY Minneapolis,MN 55433 F.HURLEY OF COUNSEL \'IRGIL C.HERRICK PETER BARNA HERMANLTALLE (612) 780-8500 FAX(612) 780-1777 LAWRENCE M.NAWROCKI PATENT,COPYRIGHT AND TRADEMARK LAW December 3, 1991 Oliver Erickson 3231 Central Avenue Northeast Columbia Heights, MN 55421 RE: The Housing and Redevelopment Authority of the City of Fridley, Minnesota vs. Ernest L. , Muriel K. , Donald A. and Judith A. Fitch Dear Mr. Erickson: Pursuant to the telephone conversation-of today wherein you advised me that you would be out of town from January 28, 1992 through the entire month of February of 1992 and then from March 10, 1992 through April 1, 1992, I have rescheduled the Commissioners Hearing regarding the above matter to January 27, 1992 at 8:30 A.M. at the Fridley City Hall in the Council Chambers located at 6431 University Avenue Northeast, Fridley, MN 55432. Sincerely, James D. Hoeft JDH:jjh cc: Bradley J. Martinson cc: Barbara Dacy/City Planning Coordinator cc: Dennis E. Taylor cc: Albert Kordiak - cc: Harvey Peterson cc: Roberta/City Manager's Office Columbia Heights Office Anoka Office 3989 Central Avenue NE Anoka Professional Building Minneapolis,MN 55421 403 Jackson Street (612)788.1644 Anoka,MN 55303 (612)427-6300 • 1-E Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: November .21, 1991 TO: Paul Hansen, Accountant FROM: ✓Barbara Dacy, Community Development Director SUBJECT: Dairy Queen Lease Payment I received payment today from Don Fitch as follows: 1. Lease Agreement - $500/month when operating 2. Date of Lease Agreement is July. 25, 1991. 3. $500/month divided by 31 days = $16.20 4. Seven days in July at $16.20 = $113.40 28 days in October at $16.20 = $453.60 Two full months, Aug. & Sept. at $500 each = $1,000.00 5. Total equals $1,567.00 6. Please receipt check and return receipt to: Don Fitch 8360 Sunnyside Road Moundsview, MN 55112 BD: ls cc: William Burns M-91-846 4 t z Community Development Department I= HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 6, 1991 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Subordination of a New HRA Second Mortgage for Springbrook Apartments Background At the August 8, 1991, meeting, the HRA gave concept approval to restructure the second mortgage subject to four criteria identified in Jim Casserly's memo dated August 1, 1991. University Avenue Associates, owner of the Springbrook Apartment property is now asking for final approval to subordinate a new mortgage to a new FHA insured note and mortgage. tequest Attached is a letter from Sherrill Oman, attorney for University Avenue Associates, outlining how the proposal is meeting the four criteria identified in Casserly's August 1, 1991, memo. On Tuesday, December 3, 1991, Oman contacted me regarding the necessity to have the HRA act on this matter prior to December 31, 1991. I advised her that because of the "last minutes" application and because Bill Burns was called out of town unexpectedly, I could not guarantee HRA consideration. I did agree to schedule the item on the agenda and asked that all materials be submitted as soon as possible for review by Casserly. I have asked Jim Casserly to prepare an analysis of the request and to prepare a recommendation for the HRA on Thursday evening. The supporting documentation noted in Oman's letter has been included in the packet, but, because of its length, was not in the agenda. Casserly has advised me that additional information is needed. He also stated that he will prepare a resolution if the HRA takes action on Thursday. Oman states that FHA has been slow to provide information, and that is the reason for the last minute approach. Further, if closing cannot occur by December 31, 1991, the refinancing package is not possible. Casserly and staff are doing as much work as possible to provide the BRA with an analysis of all aspects of the proposal. While we want to accommodate the request, we do not want the HRA to feel rushed into a decision. Finally, we have arranged to require University Avenue Associates to pay for Casserly's charges. BD:ls M-91-876 2-A LARKIN, HIOFFMAN, DALY 8c LINDGREN, LTD. ATTORNEYS AT LAW 1500 NORTHWESTERN f INANCIAL CENTER 5000 PIPER JAFFRAY TOWER 7900 XERXES AVENUE SOUTH 222 SOUTH NINTH STREET 61,O0MIN6TON,MINNESOTA 88431 MINNEAPOUS,MINNESOTA 36402 TELEPHONE 1612)855-5800 TELEPHONE 16121 725-8610 FAX 16121 896-3333 FAX 16121 336-9760. NORTH SUSURSAN Of FICE 8990 SPRIN69ROOK DRIVE,SUITE 250 REPLY TO MIN NEAPO LIB =NCR RILL ROMAN COON RAPIDS,MINNESOTA5f433 TELEPHONE(61Z1 796-7117 FAX 16121 766•67I1 December. 5, 1991 Mr. William Burns, City Manager and Chair, and Commissioners of the Housing and Redevelopment Authority City of Fridley 6431 University Avenue N.E. Fridley, Minnesota 55432 Re: Springbrook Apartments Ladies and Gentlemen: As you will recall , Harry J. Yaffe, a Partner. of University Avenue Associates, and I appeared before you on August 8, 1991 , to discuss the refinancing of the existing $14,000,000 loan encumbering the Springbrook Apartments Project. A copy of the letter submitted to you in connection with that appearance is attached hereto. At the August meeting, you approved consideration of subordination of the HRA mortgage to a new FHA-insured note and mortgage provided certain requirements were met. Those requirements were as follows: 1. That the project pro forma demonstrate an ability to pay the HRA note; 2. That an appraisal of the project show net sale proceeds would be adequate to pay the HUD guaranteed debt and the note (not just the HRA debt secured by the second mortgage) ; 3. That at least 75% of the note be secured by assets ( including assets other than the Springbrook Apartments Project) ; and 4. That the cumulative financial net worth of the guarantors exceed $10,000,000. We have been advised that we will be receiving a commitment for an FHA-insured mortgage any day. We hope to have it before our. Z 'd 0 I t,72 109017 'ON /33:9 S/LZ:9 11619 'Z I (nHi) NAlg NVWEOH N I I VI WO' ££££ 968 Zt9 2-6 LARKIN, HOFFMAN, DALY 8c LINJ)GREN, LTD. Mr. William Burns and Commissioners of HRA December 5, 1991 Page 2 appearance before you on December. 12, 1991. Based upon information we have received to date, however, we believe the size of the FHA mortgage will permit a mortgage in favor of the BRA in the amount of approximately $430,000. Accordingly, in order to meet FHA regulations, it will be necessary for the note payable to the HRA from the partnership to be reduced to the amount approved by HUD And secured by a mortgage in the same amount. We propose the -remainder of the HRA debt be evidenced by an additional note executed by the principals of the partnership. These principals are the same individuals as the guarantors. The amount .of the existing note and mortgage would be reduced pursuant to an amendment to those documents, proposed forms of which are enclosed herewith, together with a proposed form of the note to be executed by the partners. Also enclosed is the pro forma submitted to HUD, demonstrating the ability of the project to pay not only the FHA-insured mortgage, but also both of the HRA notes. Although we would expect to be able to pay both of the HRA notes from the cash flow of the project, the principals of the partnership would be obligated to pay the note executed by them regardless of cash flow from the project. The FHA appraisal, which will be a part of the FHA commitment we hope to have prior to your meeting, will demonstrate a value in excess of the FHA mortgage and the notes to the HRA. Further enclosed are the financial statements of the principals (also the guarantors of your debt) demonstrating a cumulative financial net worth exceeding $10,000,000. Because the second note will be executed dby enclosed by the pincipldue to the cumulative financial net worth demonstrated information, we are proposing that the second note be unsecured. As this note is not subject to the cash flow of the project, but is an absolute obligation of the partners, we believe this provides you with adequate security for repayment. We respectfully request your consideration and approval of the proposals set forth in this letter. . Since ely, • S errill R. Oman, for. LARKIN, HOFFMAN, DALY & LINDGREN, Ltd. SRO/psb/Enclosures SRO:KU5s S 'd 0 I VZZ 1090ti 'ON /ZZ:9 I '1,S/ZZ:9 116 ,9 'Z I (11H1) Z S ' T 'LX}�� -`=— ££££ 968 ZI9 JUL 31 '91 13:38 FLINT612_334_3382_ P.2 • 2-C • Casserly Molzahn & Associates, Inc. 215 South 11 th Street, Suite 300 • Minneapolis • Minnesota 55403 Office (612) 342-2277 • Fax (612) 332-4765 MEMORANDUM TO: City of Fridley HRA William Burns, City Manager Barbara Dacy, Community Development Director FROM: James R. Casserly DATE: August 1 , 1991 RE: Springbrook Apartments Refinancing The HUD guaranteed mortgage which the owners of Springbrook Apartments are attempting to use to refinance this project is described in the letter from Sherrill R. Oman, the attorney for the partnership. Ms. Oman's letter also points out the problems with secondary financing (the HRA mortgage) under HUD regulations. The problems are the size of the second mortgage is limited and it will not be in default if project revenues are not adequate to pay it. The $850, 000 Note may be in default, but the mortgage could not be foreclosed if the project revenues are insufficient. As a result the partners would have to provide additional contributions to the partnership to pay the Note or make some additional arrangements to honor their guarantee. JUL. 31 '91 13:39 FLINT612_334_3382_ P.3 2-D The HRA will probably not have the asset (the Apartments) as full security for the Note. Please remember that currently the HRA has only a second mortgage and if it were to liquidate the Apartments to collect' on the Note, it would have to pay off the first mortgage of $14 million. The HRA does, however, have personal guarantees by the partners. The HRA should consider a new subordination under the following circumstances: 1 . That the project pro forma demonstrates an ability to pay the HRA Note. 2 . That an appraisal of the project shows that net sale proceeds would be adequate to pay the HUD guaranteed debt and the Note (not just the HRA debt secured by the second mortgage) . 3. That at least 75% of the Note be secured by assets (this may include assets other than the Springbrook Apartments) . 4. That the cumulative financial net worth of the guarantors exceeds $10 million. (This amount is contained in Article 4 of the Mortgage Guaranty presently in effect. ) 612 786 6711 ' 2-E LARKI3�, HoffMAN, DALY 8E LINI30EEN, LTD. .AUYs..LI.NKcn p6A011HOFF ALAN 1..1111.00w NATNLCGN M.RICOTTA NEWNAN ...K F.D.., ATTORNE:YS AT LAWmAN Mlpwa .. O. LC LIMON •At n N.1 LINDOREN OweGOKY e.woRSTAR £LLA M. LI.I O H *ARV A VAN CLEVE MII:MA[Y S.�RAMAN aoll ♦LLAN I J. HENNAN ppNMA I.S. O Am JA.ERT J.HCNhGi.lY AMr DARR OSACA ED A�C..ORIOCON Ieoo NORTHWESTERN FINANCIAL CANTER 2000 PIPER JAFrHAr TOW[ ey Q.ANDYwfoN OY COWARD J.l.LCR 7000 XERXES AVENUE SOVTH 222 SOUTH NINTH STREET OANI[L Y.SONDC1 OA•IE N.►JLLCw NLita .DHI4 G.ruLLARDwcN SLOOMINGTON,MINNESOTA 66431 MINNEAPOLIS.MINNESOTA 55402 Tl DD N.MOTTNJA JONN O.C. oY c TIMOTHY A.ROHAW.I3 Y wOfGwr c po( TELEPHONE i012:035-3000 TELEPHONE 1612I 330.0610 LAIN.A L A I.NARVfr OAPr A.RlNN[Kc CRAY C.ARIca A.L101.o. FAX IsIzi 006-3333 FAX 16121 336-070C TAPTA. E NEKC MMw1.T0'MAw J.O•Cl2[Y JeNN p.RAATT:[ SNANNON K.MOGANO C I.IOOA M.K TOL JVL1E A.woA[! • .TO,/ �.imi.I IMfR 1 NARR•[TMA: of NAN O.1WL - MARI.AV I ANTRA LIMN MICOAEI f..JACNMAN ♦IMQTNr J.p[ThC JOMN A w1HML WILD A4 C.KEANE JR. VON...W:FlYN W3KI JOMN J.C.t.u[NNAO CN J J.III NN DANI.I.S tFF J AMDA O.DAAAA MAW.A pu 011 •?(R 1. •a.1MAN MARK R,JKI •T[.M[N O.fOlf MfiN _ JANCf C.MILLMARTIN .Cr[R K. . A JAN55 J.ART •NCRRI N.•AMOKA ,i.OIA[LJ . ,I4 000 OC.ALD I.ROMAN wtNAr W.I.HONA 17,4 O[wTLD L.wrenMDO IC••oAt Cw m .&YL O.LLINDOUIST MART f VOf RAr1.!NOLAN• MASK A.OlNO[R ■ MAIA.N pE�.JR. ""MA•` T"`wl" Reply to Minneapolis N[RNTN► VIhGHNT J. GLLA O,DOVN1t. ANDN[w I."ITCH ALL weOUNS A.ANOC.•nN JONN O[A.ROTNwE,I rR Oil K.WCAJ[• JOMON Neva! RIe1ARO A.NORDAV[ 0Au1O J.PEAT ..,AR ADMITTED Ih July 19, 1991 •IIOON.IN • Mr. William Burns, City Manager and Chair and Commissioners of the _ Housing and Redevelopment Authority City of Fridley 6431 University Avenue Northeast Fridley, Minnesota 55432 Re: Springbrook Apartments Ladies and Gentlemen: We are a'tirg as counsel to University Avenue Associates, the owner of the Springbrook Apartments Project (Springbrook) in connection with the refinancing of its existing $14,000,000 loan with Citicorp Real Estate , Inc. , which matured June 1, 1991. As you know, Springbrook is also subject to an $850, 000 second mortgage in favor of the City of Fridley. It is the intent of University Avenue Associates (the Owner) to refinance the Citicorp mortgage through an FHA-insured mortgage which will have a term of 35 years. The Owner is gathering the information required by HUD to submit an application for the FHA- insured loan. We do not know the amount of the loan that will be approved by HUD; however, we do know it will not be enough to pay both Citicorp and the City of Fridley at this time . Accordingly, we will be requesting the assistance of the Housing Authority in two areas. First, we will be asking the Housing Authority to subordinate its existing mortgage to the new FHA-insured mortgage, as the Housing Authority has agreed to theoHousing Authority. In Private addition,ewepwill be betweennthe owner and • 612 786 6711 LARIiIN, 1)��LY R LINDQKEN, LTD. Mr. William Burns and Chair and Commissioners July 19 , 1991 page 2 asking the Housing Authority to restructure its debt to meet certain HUD regulations. We are not asking for a reduction in the amount due nor are we asking for a change in the payment provisions. HUD regulations restrict the amount of debt. the owner of a project may incur. The amount permitted is the lesser of 7 1/2 percent of the HUD appraised value of the project or 50 percent of the difference between the cost to refinance the project and the maximum mortgage amount determined by HUD. The cost to refinance includes all debt, deposits required to be made to a replacement reserve fund to insure that sufficient funds are available to maintain the property and make capital repairs as necessary, legal and organizational fees, title and recording fees, repair costs, architects, engineers, and inspection fees, and "points" paid to obtain the financing. The outstanding debt on Springbrook is approximately $14,850 ,000. Using these numbers, and assuming an additional cost to refinance of $350 ,000 , the following example illustrates how the HUD restrictions would work. Subordinate debt of the partnership would be restricted to the lesser of $1 ,237 ,500 (7 1/2 percent of the HUD appraised value) or $600 ,000 ( 50 percent of the difference between the cost to refinance and the maximum mortgage amount determined by HUD) . Accordingly, the maximum additional debt that could be incurred by the Owner to be paid out of revenues from the project would be $600 ,000. In addition, HUD requires the subordinate debt to be payable only out of surplus cash. Surplus cash is defined as all cash remaining after payment of the amounts due under the HUD note, amounts required for g the ect. In for otherpwords, surplus cash lacements, and all opisr the namount n ses of e available for project to the Owner. Because of these restrictions, we are requestiny the Housing Authority to consent to the concept of reducing the amount of the note and mortgage executed by the Owner and payable from project funds to the amount that will be permitted under the HUD regulations once the amount of the HUD appraised value and approved mortgage is determined. We are requesting the remaining debt, not covered by the new note and mortgage , be evidenced by a note from the Owner, payable to the Housing Authority, but solely out of capital contributions or loans from the partners to the partnership. The guarantees of the partners to the Housing Authority of repayment of the debt would remain in place. We believe, after extensive exploration of the availability of financing , the HUD mortgage is both the best and perhaps the only 612 786 6711 . 2-G LA IncIN, Dnly Lac LINT n1 EN. LTD. Mr. William Burns and Chair and Commissioners July 19 , 1991 Page 3 source of refinancing available to us t itythis time. we and City because$itbwillVe it is of benefit to the Housing Author provide permanent financing for Springbrook, fully amortized over 35 years. Thus, the ability of the Owner HUD to o repay th the inebtawillpbeit to ll be significantly enhanced. Secondly, 9 the a replacement reserve fund for the purpose of maintainingrepla then project and replacing capital items as they wear out. HUD eposre willr likelye deposit50 totbesmade per to theunit. replacementlreserve will require a monthly p fund so that at all times sufficient funds will be necessary, as determined by HUD, to properly maintain the project. the We are asking forHU cforetheamortgagefrom because ou theor to applicati making fee that actualapplication to HUD must accompany the application is $3 per $1 ,000 of the requested mortgage amount to be insuapproving ed�oving general, thethis concept andnsuchfapproval able. We understand you will be pP and your consultants of the will be subject to analysis by you documents and the actual economics of the proposal as that information becomes available. The Owner further understands it would be responsible for your outside consultant's fees in connection with such review and analysis. We appreciate your consideration of this matter and respectfully request your consent. sincerely, (74..44_,Laced2e-Aez_e_,) Sherrill R. oman, fo LARKIN, HOFFMAN, DALY & LINDGREN, Ltd. SRO/p8b cc: Mr. Harry Yaffe, University Avenue Associates SRO:KJls DATE 12/05/91 CITY GF FRIDLEY - HRA PAGE 1 PROGRAM P0O8 CHECK REGISTER CHECK RUN BATCH # :0011 002 HRA VEND R DISC. JOB DESCRIPTION INV # PO/INV # SEQ # PCNT AMOUNT ACCT NUMBER NMBR MESSAGES 2179 **** LACK-PREPAID F00026 FRIDLEY STATE BANK INVESTMENT 00473-01 JXIM3V0.0000 24,000.00 DR701-10400 INVESTMENTS, AT COST 24,000.00 CR701-10100 CASH **** TOTAL VENDOR **** $ 24,000.00 2180 **** CHECK-PREPAID **** F00026 FRIDLEY STATE BANK INVESTMENT 00474-01 JXIM3W0.0000 1,240,927.56 DR701-10400 INVESTMENTS, AT COST 1,240,927.56 CR7O1-1010O CASH **** TOTAL VENDOR **** $ 1,240,927.56 2181 **** CHECK-PREPAID **** BO0065 BARNA, GUZY & STEFFEN, LTD. OCTOBER LEGAL SERVICES 00475-01 JXIM130.0000 323.00 DR450-20200 ACCOUNTS PAYABLE 323.00 CR450-10100 CASH OCT LEGAL SERVICES 00475-02 JXIM300.0000 272.00 DR460-202O0 ACCOUNTS PAYABLE 272.00 CR460-10100 CASH **** TOTAL VENDOR **** $ 595.00 2182 ****CHECK-PREPAID **** C00044 CASSERLY LAW OFFICE NOV LEGAL SERVICES 00476-01 JXIM1L0.00O0 652.50 DR455-20200 ACCOUNTS PAYABLE 652.50 CR455-10100 CASH NUN LEGAL SERVICES 00476-02 JXIM33O.0000 6,872.60 DR460-20200 ACCOUNTS PAYABLE 6,872.60 CR460-10100 CASH NOV LEGAL SERVICES 00476-03 JXIM3R0.0000 112.50 DR462-20200 ACCOUNTS PAYABLE 112.50 CR462-10100 CASH **** TOTAL VENDOR **** $ 7,637.60 2183 **** CHECK-PREPAID **** F00O23 FRIDLEY, CITY OF WATER USED AT LAKE POINTE 00477-01 JXIM100.0000 3,757.90 DR455-2O2O0 ACCOUNTS PAYABLE 3,757.90 CR455-10100 CASH **** TOTAL VENDOR **** $ 3,757.90 2184 **** CHECK-PREPAID H** FO0023 FRIDLEY, CITY OF NOV OPERATING EXPENSES 00478-07 JXIM160.0000 169.82 DR45O-20200 ACCOUNTS PAYABLE 169.82 CR450-10100 CASH NOV OPERATING EXPENSES 00478-08 JXIM190.0000 25.31 DR450-20200 ACCOUNTS PAYABLE 25.31 CR450-10100 CASH NOV OPERATING EXPENSE 00478-09 JXIM1D0.0000 95.40 DR450-20200 ACCOUNTS PAYABLE 95.40 CR450-10100 CASH NOV OPERATING EXPENSES 00478-10 JXIM1G0.0000 50.00 DR450-20200 ACCOUNTS PAYABLE 50.00 CR450-10100 CASH NOV OPERATING EXPENSES 00478-02 JXIM1T0.0000 150.84 DR46O-20200 ACCOUNTS PAYABLE 150.84 CR460-10100 CASH NOV PERSONAL SERVICE 00478-01 JXIM360.0000 13,360.33 DR46O-20200 ACCOUNTS PAYABLE 13,360.33 CCR46O-10100 CASH NOV OPERATING EXPENSES 00478-03 JXIM3D0.0000 337.00 DR460-20200 ACCOUNTS PAYABLE 337.00 CR460-101t1O CASH DATE 12/05/91 CITY OF FRIDLEY - HRA PAGE 2 PROGRAM P008 CHECK REGISTER 3- A CHECK RUN BATCH # :0011 002 HRA VENDOR DISC. JOB DESCRIPTION INV # PO/INV # SEQ # PCNT AMOUNT ACCT NUMBER NMBR MESSAGES NOV OPERATING EXPENSES 00478-04 JXIM3G0.0000 168.40 DR460-20200 ACCOUNTS PAYABLE 168.40 CR460-10100 CASH NOV OPERATING EXPENSES 00478-05 JXIM3J0.0000 14.25 DR460-20200 ACCOUNTS PAYABLE 14.25 CR460-10100 CASH NOV OPERATING EXPENSES 00478-06 JXIM3M0.0000 425.50 0R460-20200 ACCOUNTS PAYABLE 425.50 CR460-10100 CASH **** TOTAL VENDOR **** $ 14,796.85 2185 **** CHECK-PREPAID **** M00027 MAXFIELD RESEARCH GROUP, INC. RESEARCH SERVICES 00479-01 JXIM390.0000 3,789.07 DR460-20200 ACCOUNTS PAYABLE 3,789.07 CR460-10100 CASH **** TOTAL VENDOR **** $ 3,789.07 **** TOTAL NUMBER OF CHECKS WRITTEN : 000000 **** TOTAL DOLLARS FOR CHECKS WRITTEN : $ 1,295,503.98 **** LAST CHECK NUMBER : 002178 a 3-B TO: FRIDLEY H.R.A. FROM: CITY OF FRIDLEY RE: BILLING FOR OPERATING EXPENSES FOR NOVEMBER, 1991 AND NOVEMBER 1991 ADMINISTRATIVE EXPENSES NOVEMBER ADMINISTRATIVE PERSONAL SERVICES 13, 108.08 NOVEMBER ADMINISTRATIVE OVERHEAD 252 .25 TOTAL ADMINISTRATIVE BILLING 13,360. 33 OPERATING EXPENSES: PLASTIC INSERTS FOR TIF BOOK 150.84 AIRFARE, TAXI - BASIC ECONOMIC DEVELOPMENT COURSE - BARB DACY 337. 00 3RD QUARTER COPIER ALLOCATION 168.40 INVENTORY BOOKLET 14.25 MEALS, LODGING - BASIC ECONOMIC DEVELOPMENT COURSE - BARB DACY 425. 50 OCTOBER MANAGEMENT FEE - RICE PLAZA 169.82 ELECTRICITY - RICE PLAZA 25. 31 MOWING - RICE PLAZA 95.40 CLEAN/SWEEP BUILDING 50. 00 TOTAL OPERATING EXPENSES FOR NOVEMBER 1,436. 52 TOTAL EXPENDITURES $14,796. 85 1 4 HIR Community Development Department I\ HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 6, 1991 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Discussion of TIF Policies Background The City Council asked staff to prepare TIF policies prior to proposing additional modifications to the redevelopment plan and creation of tax increment districts. Attached is the information that was presented to the City Council at its conference meeting on November 25, 1991. I would like to make the same presentation to the HRA as was given to the City Council. In general, the City Council concurred with the proposed policies but wanted additional information and adjustments as follows: 1. Councilmember Billings suggested that we evaluate projections from potential projects before considering a percent cap on captured tax capacity from tax increment districts. 2. Councilmember Jorgenson requested information from other cities regarding total percent of total captured tax capacity. _ 3. Councilmember Billings wanted to clarify the policy regarding local government aid. He suggested that the City state the policy as: "City funds should not suffer as a result of HRA funding for a project." The Council will discuss the above follow-up information at its Council conference meeting on January 13, 1992. The HRA should discuss the proposed policies and provide additional direction in order to review that with the Council at its January 13, 1992, meeting. BD:ls M-91-877 • , I II, 4-A rLICommunity Development Department I\ HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: November 20, 1991 TO: William Burns, City Manager. . FROM: Barbara Dacy, Community Development Director SUBJECT: Proposed Tax Increment Financing Policies Discussion of TIF policies should be discussed by the City Council in the following order: 1.. Definition of terms 2. Discussion of General Guidelines 3 . Chart entitled "Developer Assistance" and "HRA Redevelopment Costs I. Definitions. For the purposes of the Council 's discussion, it is critical that all participants are using the same definition for key terms. These are as follows: A. Cost versus a subsidy 1. Cost is the amount of money needed to acquire land, prepare the site, or construct public improvements. 2. A subsidy is the amount of assistance to a developer that' allows the.developer to acquire the site below its fair market value. B. Redevelopment versus Economic Development 1. Redevelopment usually refers to improved and/or blighted properties. 2. Economic development usually refers to unimproved properties. C. "But-For Test" 1. Where does it come from? M.S. 469. 175, Subd. 3 (2) • 4-B Proposed Tax Increment Financing Policies November 20, 1991 Page 2 2. The "But-For Test" is as follows: "That the proposed development or redevelopment in the opinion of the municipality would not reasonably be expected to occur solely through private. investment within the reasonable foreseeable future and therefore the use of tax increment financing is deemed necessary. " D. Eligible Expenses 1. Land acquisition 2. Site work including demolition/site clearance, grading/ back-filling/compaction of fill, erosion control, and paving; include costs of base construction up to laying of asphalt 3. Utility hook-up 4. Traffic control lights/signs 5. Relocation 6. Landscaping on public right-of-ways 7. Public right-of-way costs including lighting, signage, driveway aprons, curbs, sidewalks, and boulevards 8. Interest cost during construction period of eligible expenses 9. Administrative costs including supervision, contractors fees, inspection fees, and overhead 10. Consultant's fees including architectural/design, engineering, financial consulting, and legal/bond counsel 11. City assessments, including sanitary sewer, storm sewer, streets, and any costs listed above that are assessable 12 . Contingency 13. Interest rate buy-down for housing only E. Project Costs are the cost of land, building, and equipment that are incurred within the first year from the start of project construction. • 4-C Proposed Tax Increment Financing Policies November 20, 1991 Page 3 II. General Guidelines. To follow is a draft list of general guidelines which we believe address key points discussed by the City Council and the HRA. These guidelines, in conjunction with the chart in the following section, will help guide the community in achieving its redevelopment goals. A. TIF policies are not goals, but are guidelines only. B. The subsidy should be proportional to the size of the project. C. Every district should be self-supporting; however, in certain areas the HRA's redevelopment costs may greatly exceed the value of tax increment revenues generated in projects that fulfill redevelopment goals (i.e. housing rehabilitation projects or redevelopment from commercial to residential) . D. The City should not incur any losses as a result of the HRA assisting a project. E. Any developer/user must justify the requested assistance ("But-For Test") . F. Whenever possible, the HRA should recapture its subsidy from the project. G. The captured tax capacity shall not exceed 15% of the total tax capacity. H. Pooling of TIF revenues is desirable as a means of accomplishing difficult redevelopment goals (i.e. housing rehab) . I. Wherever possible, the amount of TIF assistance for a project should be limited through the use of alternative financial incentives e.g. SBA 504 financing, industrial revenue bonds, or economic recovery fund grants. J. The amount of TIF given to any project must be related to the contribution of the project to the City's redevelopment goals including creation and retention of jobs, enhancing the tax base, preserving the decline of tax values, eliminating blight and deteriorated properties, or meeting affordable housing/other housing objectives. K. Developers and users should demonstrate the financial feasibility of the project. k 4-D Proposed Tax Increment Financing Policies November 20, 1991 Page 4 III. Attached is a matrix identifying maximum percentages of project cost to be considered for economic development districts and redevelopment districts. The HRA has adopted an application process for submission of sources and uses statements, proformas, and an application fee. If the project meets the goals of the redevelopment program, the HRA can utilize either a grant, loan, or pay-as-you-go grant to assist the project. IV. The Chart entitled "Redevelopment Costs" identifies a guideline for the City to use in determining the maximum amount of redevelopment costs to be incurred for industrial, commercial/office, or housing projects. Reference general guidelines C and H. There may be cases where districts will need to use increment from other districts. Where this happens, we suggest a maximum cap of 125% for industrial and commercial/office redevelopment projects and 150% for housing redevelopment projects. 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I __ �,N, • ' I f e`, r r � ! j -- Redevelopment Area Number 1 5 (ti__ / Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 6, 1991 TO: William Burns, Executive Director of HRA PROM: Barbara Dacy, Community Development Director SUBJECT: Status Report on Housing Study On Tuesday, November 26, 1991, we received the draft copy of Maxfield Research Group's housing study. The study is 145 pages long and contains an exorbitant amount of information. At the current time, the Community Development Department staff is reviewing the study thoroughly and developing a list of comments to give to the consultant prior to the final draft being distributed to the BRA. The final draft will be prepared for presentation at the HRA meeting on January 9, 1991, and possibly for the City Council at its January 13, 1991, Council conference meeting. BD:ls M-91-878 6 Community Development Department E HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 6, 1991 TO: William Burns, Executive Director of .HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Status Report on 1992 Budget Preparation I am currently in the process of preparing a draft 1992 budget for consideration by the BRA. Unfortunately, the work needed to be completed on the TIF policies and other HRA matters has prevented me from reviewing a proposed draft budget with you. A draft budget will be prepared for the January agenda. BD:ls M-91-879 Community Development Department 0:911J HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley ESTE: November 25, 1991 TO: William , Eaaeaitive Director of HRA 'riC • FBI: Barbara Dacy, Community Development Director SUBJECT: Development Interest in Northeast Quadrant Over the past several weeks, I have received a number of telephone calls from at least three separate parties regarding development of the northeast quadrant of University Avenue and Mississippi Street. The three parties, frau what I can discern, include Lowell Wagner of Lowell Wagner Corporation, Don Fitch, and another unidentified conpany (a party has just asked general questions and wanted copies from our zoning files) . Norma Swanson, the owner of the 10,000 Auto Parts property has also contacted me verifying that Scott Ericson's agreements with her have expired and that she has been receiving calls from these parties also. She indicated that she wanted to cooperate with the City. On November 19, 1991, I net with Lowell Wagner and Jim Hanson, a broker. Apparently, Wagner and Hanson worked with Walgreens for the facility in Coon Rapids Square. Wagner indicated that he approached Swanson for this same site five years ago. His proposal is to renovate the existing building, possibly acquiring the house on Mississippi Street, and leaving the lots on the south side of 67th Avenue vacant until possible expansion would occur to the existing building. He was inquiring as to the City's preference regarding the redevelopment of this site. I advised him that the City Council and the HRA have not disused any other alternatives to the site; however, the Community Development Department staff would recommend maintaining major elements of the Ericson redevelopment plan. Most important is the location of the proposed driveway entrance, meaning that the house on Mississippi Street should be acquired. Secondly, the traffic impacts of a proposed use need to be evaluated. Thirdly, the proposed relationship to the neighborhood is very important, as well as maximizing the amount of tax base and adding to the Center City Redevelopment Area. I advised him that the Community Develcpi ent Department staff would not recommend renovating the existing building until all other options have been thoroughly explored and pursued. I advised him that Ericson was evaluating reducing the size of the development, but keeping the overall points I mentioned above intact. At minimum, I advised him to include acquisition of the Mississippi Street hone in order to properly locate the driveway entrance. Should you need further information, please advise. BD:ls M-91-856 . 8 [-.1= Community Development Department I= HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 6,' 1991 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Report on Economic Development Conference I would like to thank the HRA for authorizing the expenditures to send me to the American Economic Development Council's Basic Economic Development course in Tampa, Florida, on November 4-8, 1991. The Basic Economic Development course is a pre-requisite to a three year course for certification as an economic development professional. Mandatory attendance at each session in Tampa was required. Presenters included industrial relocation specialists, economic development professionals from around the country, and specialists in the banking industry. There were several issues that were directly pertinent to the City of Fridley: 1. Are manufacturing industries dying? Are service industries bad? According to Ross Boyle, President of Growth Strategies Organization, Inc. , the answer to both questions is, no; however, there are winning and losing industries. The manufacturing sector, while not growing as fast as the service sector, is in the process of restructuring and trying to become more operational-efficient (thus, the middle management layoffs nation-wide) . Boyle states that, overall, manufacturing employment will continue to drop, but the challenge will be to identify winners and losers. Boyle also notes that just as the manufacturing sector has a "multiplier effect" , so does some of the industries in the services sector. While service industries have been perceived as a "bad trend", some producer services have a multiplier effect similar to the effect that basic industries do in a local economy. Boyle identifies these as producer services. They are services that bring new money into a local economy and are such industries such as business and professional services, research and development, information services, administrative headquarters, and the hospitality industry. 8_p Report on Economic Development Conference December 6, 1991 Page 2 2. The City needs a plan. The City needs to identify who are the City's existing winning and losing industries and develop a program around the winners and to identify ways to assist the losers. The City should do additional research on the source of its labor supply and how changing demographics will affect the labor supply and our local economy. Ideally, this analysis should be completed in conjunction with the City's process to amend its comprehensive plan, because the City will need to evaluate and determine an overall balance between the amount of economic development growth and the necessity to expand and/or maintain the quality of the housing stock. 3. The City needs to take advantage of available financial resources. The Community Reinvestment Act and the Home Mortgage Disclosure Act are forcing banks to work more closely with the community and prove to the federal government that they are meeting the "community needs". Originally, these acts were intended to control local banks in order to prevent redlining. In fact, the federal government is stepping up enforcement on various aspects of these laws. Because banks have to meet these requirements for housing, they may also be willing to participate in loan programs for economic development as well. A closer relationship with the area banks needs to be pursued, not only for our new emphasis on housing, but also to determine if there is a source of capital for economic development. 4. Lake Pointe and the Southwest Quadrant In regard to our highest priorities of developing Lake Pointe and redeveloping the Southwest Quadrant, many of the speakers were encouraging about major corporate users. One speaker described a major corporate user and development as a "home run". He stated that the home runs come slowly and major corporations may take 2-4 years to decide to relocate or to construct a new facility within a community (sounds familiar with Target?) . Because many major companies are restructuring, consolidation or relocation may be very important to major companies. Experts estimate that by 1993 the economy will have stabilized and that the activity for large corporate entities will have increased. In other words, the advice of the experts is to be patient but persistent. • 8-B Report on Economic Development Conference December 6, 1991 Page 2 The course work was an overview of all aspects of economic development and was a thorough introduction to subsequent course work. I replaced Jock Robertson as a member of the American Economic Development Council (HRA paid membership dues previously) . Additional course work to receive certification is completed at the Economic Development Institute at the University of Oklahoma. There are only 14 other universities across the country which offer the course work. None is offered in the State of Minnesota. In order to become certified, one has to attend three week-long courses, write a thesis, and take a written and oral exam to become a certified economic developer. Apparently, course work is equivalent to six credits of a Master's program in Economics. I would like to evaluate attending the course next year in order to achieve certification. I believe the cost is similar to the amount that was incurred for the course in Tampa. I will conduct additional research, and I will verify the costs for the course during the draft 1992 budget. Thank you once again. BD:ls M-91-882 8-C .:- • Some Manufacturing Employment Winners Expanding Manufacturing Industries Terms:%Increase in Workers, 1988 to 2000 Office Furniture •+18.50• Print Trade Svcs +11.60• immini sssi emmom Plastics Prdts '+159,006 s ssssl• Partition/Fixture 19.50• s�atssl�ttt� Med/Dental Inst —60.60• smmiammosmemmsmme Eng/Sci Instr. '+104.509 111111811 t Misc.Publishing —33.40 0.0% 5.0% 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 % % % % % % % % • Presentation by M.Ross Boyle.President Growth Strategies Orsanication. Inc. 1702 Putter Lane.Reston.VA 22090 6 '03-4 1-1920 • • 1 • \ I 8p FLORIDA BASIC ECONOMIC DEVELOPMENT COURSE PERSPECTIVES ON ECONOMIC DEVELOPMENT Monday,November 4, 1991 Some Manufacturing Employment Losers Contracting Manufacturing Industries Terms:%Decrease in Workers, 1988 to 2000 -15, •• obacco • ttttttt�tttttttttttt.tt�t�■s tttttttttt�tttttttt� -3.000 Watches&Clocks -10,6•• Pri Nonfer Metal INIMMININIIIIMIIIMEMNIIMINMENEmomme -34,0•- 1111111011=1tt1 111111111111111=11111•111=M tttttttttttmttttttttttt: -3,00• Non-Rubber Shoes -5,60• ugg/Handbag -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% Is Manufacturing Dying • in America? ✓ No — It is undergoing a restructuring ✓ In technology-based industries, it can hold its share of world markets and even post some gains, when exchange rates are favorable ✓ Overall, employment will continue to drop, but there will be both gainers and losers Presentation by M.Ross Boyle.President Growth Strategies Organization. Inc. 1702 Putter Lite. Reston. VA 22090 7 703-471-1920 II • • _ wbww.w-r ince.eeat.„�ei seed notify the leaser jobCOS comae)a+9E► I VATS g-E NG tentative food labels ' Twill Cities l Pus To help consumers,the government is testing several - l l ;ay new mi= c=aiiiiimconsidered baled t ,l here m' jobless • rate oul� itwo being Nutritional intoreation per serving Cakeeree se sharp• ly. wBening size:4 ca.(244 1 cupa7�/►7 IsServings per aaRaine 7 e/Nieral Mtary .i n P�1t' calories ;:: 140�. ,.. ■ Exports warn outlook lealthCalories from fat 10 goldl vim'roes slid f , FatLaw 1 g 75 g or less `' tYNDA SINDONEtl•rams venni r Saturated tat_ . Lem . .._1g; , .2igaisle '`_ --------- R1 White House Cholesterol Low 5 mg 300 mg or less _ Weaker employment i.merry hides- n'DA s134.n+t 2..0E the at Mi trio. canoed tie tins tatim men►Pby- , p �.-K Medium 27 g 325 g or more '` met rate to reach �Percent inust t. '+ 4...t.- fiber . _ _, NO =i:: . Zt t:_: ` r`.` Seaee,percent and three times the normal m- • t• (/..►.X.0 5 pin Mkdhre 6 g � _ '., "Ile to the month. ' libelingrWATCHWOO: • Percent al dsiq Heirs ;, F i c- Malyets said the jump_r wed rued save bit- TODA'S Vlnrtdr►A:, L/Irr �' - ,.: ,1 - ai ec000mte sluggi pore tied I non andDA's Vtamin C tiAes>w s ; m heartsa Celan.._. 4:.L+ai •- - .. A sp eMe require _ Medium 15 t, ..- K. !�� ••Op mW1 relativd7 Recently,the arm: / had beRn dung somewhat hotter than the tk tiest MiN.cf+elsebfot rational veraie Now we're feeling'?eeMc4ahk11rg�MtcMe a dfeet." said: sect high- tioea for Tr N itional iderreiion tier serving ._ •-....- r some of that (national)words: grace Steurnegei. whoanalysesgeMng IOC 4 a.OM slaw;, Chia rmeersag1,ployment trends tar the h tone _ tar.hlgtr. t pormotsISenrirTgs Per container. 7 sate lobs sod Training Department•ryeswho 11°11 sewn*of, �•;.r4e..i i14R"witheed,EQrt(ev Milt or�� Celodse iw�•• ate•. '. "We are it a doable dip rccesa°°>ndice abuse- took.aeoreha eems in disc "Calories iron fat 10 that is clearly havingama- l an said . .void gtrrM. Alrotdt.. __Oaf vaiesFR- Sung Won Soho chiefIt's shoppieg i.,. . Nor vice president of Norwest Corp.' including Generals Mills, 1 g�*+ 75 g or less reallydifficult to make a case for any be too strict, some frOsabsillsryr'' ii" .... tie . _ :: kind el meaningful upturn-" are may 300 mg or less Twin Cities' employment fell by 3.5 4 and White House m nowe will txrotsatetd 5 e final s year from now. SaWW1 , c;► / ` "-2,4001Kosleek - percent in September•twice the normal I,. decline fee the month.Retail and whole- s eeq�weee, acrid adherence to carbohydrates 27 g gir-�<-325 g or more oak trade were particularly hard hit. Pose and fresh k setriircetion' nma* ++s �'- a�s�. - with Service 6led�9 roe by Mint lisle will have b provide nfei {_ •ysvv ycompared with the 3,000-job •,►rarekait a1i rtt!dnt �°��°cie"'� .•=; 1,300 jobs, .wq,,.can,Res ton 2 serawe -. rise that is normal for also fell ber.Con- e dap even wee a yY7by • �t a •Jawe a.ih yaks er of Path."[ , "traction u employment more than Many f company ottr '.Vitamin C 4 -.•taw a Mused er . trough the 2,000-page proposal lC ea ryes "Either there's a kc less job how th IS .a.rseM awe 07eer� than normally s a tut or larger. cut- Minneapolis,n, poli as General MIDI m - ,Irs,ruflu„i - ;.-. tacks than us ai," ,e n hliokeapolis would make only = ,cam�a Press c+r.�rt ProsPeeel eves for Part-teee 6``� wort are not vary good." G LABELS ooT+u+Reo an ► • 1 meth technology, o \ care as the f t in the �Q�7 S Greenwood's commercial printing and ', yrweak � carriers* _ s y was glimmers of re- covery S on.t ne a anus!ties'economy.the summer,butt !� ` lawyer chumsw ✓r Percent of flights arriving within speeding and softening exportshave 15 minutes of sdraduM _ juror '•��+p/� dimmed the outlook. Sohn said a widely Ahiine Septerrrb was + ercat in the discount rate. the - .barge the Federal Reserve ve sets as loans expected T Southwest , 93.5 89.1. to private Financial ins et will help. Alaska -' !.1` 'tits"': t tlTN 1 MoriAN OWMITER• tla i - get ie added, "If anyone is this to turn things around, going America Mara'. -: Theme 9 femme of to be disappointed It ed third Midway _. ! � the Hat Gthat convict- ..reenwood of have the income and the rdence Tr- f'`! WO07-- will take time." ime it camel- Pan American_ . »d.3 . 81.3 " 21 Wailes it the Werri -5.to `:tirl +W z..• bf;ee of Midwest unit OOA " Federal about his thheld in- : Minneapolis-S<P f� gp released United _- . 8Zformation �jr�,. :i•'� �,�r'j��:'R`� polities, M A 'Wee iln�ea1R"�=.a- `le ' m on' :ArneAren. OM ::•e3.9 ea and other mattes °wow** , rt that could indicate ry 10 :terSouth pee-: -..E a...f.. he bed a bi*- the farmeras 3dered oe Nodh t Sf mbar 91.1% ' woods +: AIM aces at for �William Massy said Wednesday.• I T I '� r s pave "Re was likely biased spinet Hal ,--4.- besti - � , • nlintlllnllttfl�l ,�Totten. i . �(1I1111111'llillll1ll jai I"III""II1tI�I■' . 1111111111111111111111/ • 11111111111111111101 matlan, he Trsuld not W.e beer on tie an N� s 11111111111111111 ■1 Jury.We oseld leave bed iim ere&bum 11 petting ; t i t t l t i i j l i i i i i i i lTctte oe WedeeedaY derded Maw' I'i i i i 111 11111111 l l 1 I I s ease ties I l l l l l l l l l l l l l l l l r l s W b�dsss77 re btri t 1.r so way biased , 'bW" t a' FeAmJ)AtaseeJreAaJ1A$ against MIr Geeessood or en of the m 4.3 a (-Year gr, otherdeteadants . NsJFWrl}AS6NDiFW1llJ servicing _ : i= weee.e sw mass. ou Z► "'tM -:> • Cam- , MOVING? CONSIDER SEATTLE, AUSTIN, ATLANTA, TWIN CITIES. These cities have been selected by Site Selection Handbook in its 1991 Geo-Ufe Survey as the metro areas with the most appealing quality of life,according to the developers surveyed.Austin,Atlanta,and Minneapolis/St. Paul also were among those picked in 1990 by Fortune as the top five cities for business, based largely on the strength of their labor forces.Commonly mentioned features among the winners include: profes- sional sports, colleges and educational quality,cultural attractions,recreation options,good transporta- tion_facilitles, healthy environments,and citizen involvement. Other top finishers were Charlotte,Tampa, Indianapolis,and Vancouver, British Columbia.(Site Selection Handbook,August 1991;Conway Data, Inc..40 Technoloav Park/Atlanta. Norcross.Georda 30092;404-446-6996.) -._ _--- --_ _ 4 r • 9 (UI 1 Community Development Department I\ HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 6, 1991 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Status Report on Wal-Mart Development On December 11, 1991, the Planning Commission will review a preliminary plat to replat the Sam's Club property and the vacant property to the north of it into one parcel. Wal-Mart is proposing to construct a 116,000 sq. ft. Wal-Mart store immediately attached to Sam's Club building. As the HRA will recall, the development agreement executed in 1986 required a "cohesive" and "quality" development on this property. The HRA also agreed to provide $100, 000 in assistance for two phases of development (Wholesale Club and additional retail) . At the January 9, 1992, meeting, an item will be scheduled for the HRA to review the proposed development and to determine if it meets the tests as stated in the development contract. Upon initial review, the proposed plans appear to meet the original intent of the development agreement; however, we would like the HRA to review the exterior building elevations and to review the development in total since this is a somewhat different proposal than what was originally considered in 1986. At the meeting, I will be able to provide an update on the Planning Commission's action on December 11, 1991. BD:ls M-91-881 1 V 10 O HI = Community Development Department I \ HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 6, 1991 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Rice Plaza Update Attached is the monthly report on rents received from the Rice Plaza tenants. On December 5, 1991, I met with Jim Kordiak regarding comparison rental rates of other multi-tenant commercial buildings in the area along University Avenue. Jim has completed a lot of work and has prepared a substantial amount of information. Also, we have not had the ability to meet with Terrie Mau regarding her lease agreement. We will be doing so this month and a recommendation for the HRA will be presented at the January meeting. BD:ls M-91-880 4 r r CO q 0) N r O o V S 10-AU D a, Or O n ID U y r OF. D rCO t) O DCDI 0 N CO CO II- D)co ~ N. C) N C) C) CO T r T O T CD Co W T In et r O T V m CO c*) C) CD O U) GP W N COD co N t(D CO co LO > CO CD h F- N N CD CO CC LJJ m ct U) CO) COD 0 CD O CO 0 Ch 1- O et CO CD CD H co O N CO O c et 8 r M N ID O O IA T O r- f%. I- T et N O O CO CD a.w COD N o Co CO T N Cl) In CO C� et CO Lo O 1- In M (/) O O f- O CD et CO D Co M cV O I� Ci C) DCO coO in N N M N. 4C T tt CO C) O CO N N O O ID CO >, N. 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