HRA 02/13/1992 - 6367I/
HOUSING AND REDEVELOPMENT AUTHORITY
THURSDAY, FEBRUARY 13, 1992
7:30 P.M.
WIT LI M BURNS
EXECUTIVE DIRECTOR OF HRA
CITY OF FRIDLEY
A G E N D A
HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, FEBRUARY 13, 1992, 7:30 P.M.
Location: Council Chambers
Fridley Municipal Center
6431 University Avenue N.E.
CALL TO ORDER
ROLL CALL
APPROVAL OF MINUTES: January 9, 1992
ACTION ITEMS:
RECEIVE BIDS AND AWARD CONTRACT FORS%
LAKE POINTE DEVELOPMENT MAINTENANCE Ile
PROJECT NO. 226 . . . . . . . . . . . G✓�� „ �: . ('
CONSIDER APPROVAL OF JOINT POWERS /
AGREEMENT WITH ANOKA COUNTY AND CITY
OF FRIDLEY, MISSISSIPPI STREET AND
UNIVERSITY AVENUE IMPROVEMENT PROJECT . . .
CONSIDER CONVEYANCE OF EASEMENT TO ANOKA
COUNTY, 280 MISSISSIPPI STREET (D.Q.)
CONSIDER APPROVAL OF 1992 BUDGET. . .,�i�.y'� 4
CONSIDER APPROVAL OF THIRD AMENDMENT TO
LEASEHOLD AGREEMENT AND FIRST AMENDMENT
TO MEMORANDUM OF LEASEHOLD AGREEMENT. C�,n 5
CLAIMS AND EXPENSES . . . . . . . . I . . . . . . 6
INFORMATION ITEMS:
PRICE PLAZA UPDATE . . . . . . . . . . . . . . . . . . . 7
�AEVIEW PROPOSED HRA NEWSLETTER : . . . . . . . . . . . . 8
PROPOSED 1992 TIF ACT . . . . . . . . . . . . . . . . . 9
Center One Corporation Proposal . . . . . . . . . . . .10
Joint Meeting with City Council . . . . . . . . . . . .11
OTHER BUSINESS
ADJOURNMENT
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING, JANUARY 9, 1992
CALL TO ORDER:
Chairperson Commers called the January 9, 1992, Housing &
Redevelopment Authority minutes to order at 7:45 p.m.
ROLL CALL:
Members Present: Larry Commers, Virginia Schnabel,.John Meyer,
Jim McFarland
Members Absent: Duane Prairie
Others Present: William Burns, Executive Director of HRA
Barbara Dacy, Community Development Director
Paul Hansen, Accountant
Jim Casserly, Consultant
Jim Hoeft, HRA Attorney
Steve Billings, Councilmember
Nancy J. Jorgenson, Councilmember
Mark Rasmusson, McGlynn Bakeries, Inc.
Mike McGlynn, McGlynn Bakeries, Inc.
Lee Maxfield, Maxfield Research Group
Mary Bujold, Maxfield Research Group
Dale Beckman, BRW, Inc. (Wal -Mart)
Doug Erickson, Fridley Focus
APPROVAL OF DECEMBER 12, 1991, HOUSING & REDEVELOPMENT AUTHORITY
MINUTES•
MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the
December 12, 1991, Housing & Redevelopment Authority minutes as
written.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
1. CONSIDER APPROVAL OF DEVELOPMENT AGREEMENT WITH MCGLYNN
BAKERIES•
Mr. Burns stated this item has been reviewed at a number of levels,
including the Planning Commission review for conformance with the
Comprehensive Plan. The HRA has looked at the modified
development plan and the creation of a TIF district. The City
Council held a public hearing on December 9, 1991, on the
modification of the development plan and the creation of TIF
District No. 12 with McGlynn Bakeries. On January 6, 1992, the
HOUSI•NG & REDEVELOPMENT AUTHORITY MTG., JANUARY 9, 1992 - PAGE 2
City Council approved the modified development plan and creation
of TIF District No. 12.
Mr. Burns stated that in addition to all these reviews, the Anoka
County Board of Commissioners has reviewed and approved the TIF
district and the school districts have been notified and given an
opportunity to review.-
Mr. Burns stated he has asked Mr. Casserly to prepare an executive
summary to the Development Agreement. His summarized comments are
from this executive summary.
Mr. Burns stated that, in theory, the redeveloper, McGlynn
Bakeries, is providing funds to the HRA for qualified improvements;
in this case, a land writedown. The HRA is actually borrowing
money from McGlynn to be repaid through available tax increment.
The redeveloper does not receive his agreed -upon TIF payments
unless he employs an average of 200 full time employees or full
time equivalents during the preceding calendar year. Theoreti-
cally, the HRA acquires the property from McGlynn Bakeries for the
amount of the note, $701,172, and conveys it back to McGlynn for
$1. The note is not executed until the HRA has certification that
all the improvements have been completed. All minimum improvements
are to be completed by June 30, 1993.
Mr. Burns stated McGlynn is also required to maintain adequate
insurance to cover the value of the property. McGlynn Bakeries
also agrees that a minimum market value of the property shall not
be less than $3,800,000. It is currently being valued at
$2,100,000. McGlynn will receive 95% of the value of that
increment, and the HRA will receive 5% of the available tax
increment for coverage of its administrative costs over a period
of approximately 14 years.
Mr. Burns stated McGlynn also agrees to pay. prevailing wages as
defined in M.S., Section 177.421 and City Resolution No. 25 -90,
for all work connected with the project.
Mr. Burns stated TIF is pledged on a "pay -as- you -go" basis over 14
years. The present value of the amount projected is $649,542.
The City has also succeeded to get, with great help from
Representative Wayne Simoneau and the State Department of Trade
and Economic Development, an Economic Recovery Loan in the amount
of $250,000 to assist McGlynn with the purchase of machinery and
equipment. In addition, the HRA will spend approximately $10,000
for the correction of the drainage problems in the rear parking
lot. So, the total package is $649,542 plus $250,000 plus $10,000.
Mr. Burns stated staff believes that the project more than
adequately complies with the state law which requires a "But -For"
Test. They do not believe redevelopment would occur here in
Fridley without the HRA's investment. There is an old building on
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HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 9, 1992 - PAGE 3
the site that was constructed piecemeal for the processing of
pizzas. There is a lot of expenses associated with repairing the
building and reconfiguring it for making bakery projects rather
than pizzas. In many respects, it might be cheaper for McGlynn to
go somewhere else and build a new building than to rehabilitate
this building. So, staff believes the HRA's money is necessary to
attract the project. Staff also believes that.by doing this
project, they are eliminating a blighting influence on the City of
Fridley.
Mr. Burns stated other advantages to the project are as follows:
1. McGlynn has pledged to bring a minimum of 250 full time
jobs to Fridley by the end of 1995. With recent .
developments, staff believes that job creation could be
substantially greater than that officially pledged.
2. McGlynn enjoys a reputation as a fast growing,
financially sound company. The City will benefit.by
having.a company of this quality in Fridley.
3. McGlynn will be bringing a $7,000,000 annual payroll that
will no doubt generate additional jobs in Fridley and
that some of those dollars will be spent in Fridley.
4. McGlynn fills a void that might otherwise be difficult
to fill.
Mr. Burns stated staff recommends the approval of the Development
Agreement between HRA and McGlynn Bakeries.,
Mr. Commers asked Mr. Casserly to review paragraph 3, page 37, to
see if, in fact, the word "and" should be changed to "or ": "The
Authority shall pay on' each Scheduled Payment Date to the
Registered Owner the lesser of the Available Tax Increment and or
the Scheduled Payment due hereon on that date."
Mr. Casserly stated that is probably correct.
Mr. Casserly handed out materials that should be included with the
Development Agreement: The first hand -out is a schedule of what
is included in the minimum improvements. The other thing that
needs to be corrected is conformance to a couple of definitions.
The definition of "Redeveloper" is the definition that is contained
in the Development Agreement between the City.and McGlynn. That
Development Agreement is a result of the State providing a $250,000
grant to the City and not to the HRA. So, the City enters into an
agreement with McGlynn; and, in several instances, he has tried to --
conform that the Agreement was really negotiated between McGlynn
and the State, and the City is really acting as a conduit for that
agreement. One of the definitions that should be consistent is the
definition of Redeveloper. The Redeveloper has asked that this
t
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 9, 1992 - PAGE 4
redevelopment contract conform to the Development Agreement. He
recommends that the HRA include that as part of the Development
Agreement.
Mr. Casserly stated another change is as a result of a discussion
with City Council, and that is a new representation that the City
is asking McGlynn to make which would go on page 8 of the
Development Agreement. This is the representation that the company
will, in fact, pay wages according to the Prevailing Wage Rate.
The City Public Works Department will be responsible for monitoring
compliance. He has also made reference to the City's resolution
which adopted the Prevailing Wage Provision. A copy of that
resolution is attached, and he recommends that it be incorporated
into the Agreement. McGlynn concurs with this.
Mr. Mark Rasmusson stated McGlynn Bakeries is very excited about
coming to Fridley. Everything that has been planned to come to
Fridley will still come to Fridley, plus a little more. He stated
Mike McGlynn, President of McGlynn Bakeries, is also at the meeting
to address any concerns or questions the HRA might have because of
the publicity in the paper about their recent sale of the frozen
products division to Grand Met /Pillsbury.
Mr. Mike McGlynn stated that on behalf of the shareholders of the
McGlynn family and all the McGlynn employees that will be moving
to Fridley, he wanted to express their excitement about moving into
a new facility and being part of the City. of Fridley. He also
wanted to thank the HRA and staff for all their work on this
project, and McGlynn looks forward to working with them in the
future.
Mr. Commers stated that with regard to the purchase of McGlynn's
frozen products division by Grand Met /Pillsbury, will that_ptirchase
.affect the entity of McGlynn Bakeries, Inc.?
Mr. McGlynn stated it will not. They will still be McGlynn
Bakeries, Inc. The present shareholders of McGlynn Bakeries will
continue in their present form minus the frozen products division.
Mr. Commers stated that part of the intention of entering into this
redevelopment agreement was based on McGlynn Bakeries, Inc. Is,
financial ability to fulfill their side of the bargain in terms of
development of the project, being able to pay the real estate
taxes, etc. With the sale of the frozen products division which
will be a significant portion of McGlynn's assets, is there any
problem in McGlynn Bakeries, Inc., providing City staff with some
kind of information regarding the remaining McGlynn Bakeries'
ability to continue to meet their financial obligations?
Mr. McGlynn stated there is some confidentiality with Grand Met so
there are some things they cannot disclose without Grand Met's
permission. Many questions being asked by people are whether there
HOUSING A REDEVELOPMENT AUTHORITY MTG., JANUARY 9, 1992 - PAGE 5
is any connection between the purchase of the Totino plant from
Grand Met and the sale of McGlynn's frozen foods division to Grand
Met. He stated that there is no connection; it was pure
coincidence. He stated they were looking at the purchase of the
Totino plant long before Grand Met ever approached McGlynn about
purchasing their frozen products division.
Mr. McGlynn stated that regarding Mr. CommersI question about
McGlynn's present financial condition. If anything, McGlynn now
has a higher level of strength and stability. After this trans-
action with Grand Met is completed, the availability of bank loans
and the net equity, etc., of the company will be strengthened
through.the strength of the shareholders. The transaction is not
a cash transaction, but a stock - for -stock transaction. The
structure of McGlynn Bakeries, Inc., is such that the voting
control of the vast majority is held by his father, so his
financial condition on paper greatly improves.
Mr. Commers asked if the HRA has any personal- guarantee on this
transaction.
Mr. Casserly stated that because they are not issuing any debt,
they have not asked for any personal guarantee.
Mr. Rasmusson stated that before the meeting, they provided Mr.
Casserly with some numbers and briefly reviewed those numbers with
him of what the remaining company's projected 5 -year cash flow and
earnings and other financial data will look like for the next five
years. As they can see, McGlynn Bakeries, Inc., is a very
financially strong company by itself. The frozen products division
was a net cash user, because it was growing so rapidly. The retail
division grows fast but not as fast as the frozen products
division. For the last 5 -10 years, the retail division has been
supplying excess cash within the company to the frozen products
division; and now it will no longer have to do that. It can
maintain its cash flow for its own purposes.
Steve Billings, City Councilmember, stated that on Monday, January
6, 1992, the City Council voted on a 4 -1 vote to approve the tax
increment district. Lately, it has been the Council's position
to not create any new districts unless they are fairly confident
the HRA has a development agreement ready to go.. He stated he is
at the meeting to do two things: (1) to explain his "no" vote at
the Council; and (2) to express his feelings of betrayal.
Councilmember Billings stated that for the last three months the
City has been hearing how great McGlynn Bakeries, Inc., and what
a terrific neighbor they are going to make, and all the jobs that
will be created in Fridley; and by moving to Fridley, they will
free up space in Eden Prairie to create new jobs in Eden Prairie.
Before he knew they were going to be creating new jobs in Eden
Prairie, he thought if they are just moving jobs from one side of
HOUSING & REDEVELOPMENT AUTHORITY MTG. , JANUARY 9, 1992 - PAGE 6
the seven-county metropolitan area to another and creating an
additional .67 jobs for each production job in Fridley, that means
they are losing .67 jobs plus the production jobs in Eden Prairie.
When he heard they were creating new jobs in Eden Prairie, that
made his feel a little more comfortable.
Councilmember Billings stated that throughout this whole process,
they have been aware that it will be 18 years before School
Districts 14 and 16 and Anoka County start to receive any money
from the real property taxes that are going to be generated off
this project. They have been hearing talk about the $7 million
payroll and the jobs, but he had a lot of questions, and he still
cannot put his finger on why things are just not ringing perfectly
true to him.
Councilmember Billings stated that now McGlynn is selling off a
portion of its business which employs 900 people in Eden Prairie
and Chanhassen to a company which previously bought property and
business located in the City of Fridley and chose to move those
jobs from the Totino plant to Indianapolis for greater national
distribution. There is no guarantee to the City of Fridley that
Grand Met is not going to do the same thing with the Eden Prairie
and Chanhassen facilities. So, McGlynn Bakeries, Inc. , has just
completed a multi-million dollar deal to sell off a portion of
their business, they needed the retail operation to move to, they
came to the City of Fridley and are receiving from Fridley and the
State of Minnesota close to $1 million additionally to help them
put together that multi-million dollar windfall they are getting;
and, in the process, have been less than honest with the City of
Fridley and the HRA.
Councilmember Billings stated he cannot believe this package was
put together between Monday night, January 6, and Wednesday
morning, January 8. Someone in the McGlynn organization knew they
were working on this deal with Grand Met and were not forthright
in letting the City of Fridley know that there was the possibility
that jobs are going to be leaving Eden Prairie. At the Council
meeting on Monday night, January 6, 1992, the Fridley City Manager
indicated in his presentation to the Council that 44 new jobs would
be created in Fridley, 200+ jobs would move from Eden Prairie to
Fridley, and that would allow space in Eden Prairie for expansion
of the frozen foods operation creating another 70 jobs.
Councilmember Billings stated he just wanted to express his
feelings to the HRA and have the HRA analyze those feelings before
making any decision. He believed McGlynn has been less than
honest, and it truly troubled him.
Councilmember Billings stated that in the newspaper in a discussion
on whether or not Grand Met will move jobs, a spokesperson for
Grant Met indicated that they would not be contemplating that on
day 1 for sure. In talking about the current McGlynn employees,
r
HOUSING A REDEVELOPMENT AUTHORITY MTG., JANUARY 9. 1992 - PAGE 7
Mr. McGlynn was alleged to have said that job security is the
product of hard work. Councilmember Billings stated it is his
opinion that economic assistance from the City of Fridley is a
product of honesty. He thanked the HRA for their time.
Ms. Schnabel stated that if the HRA approves the development
agreement with McGlynn and McGlynn does develop the property in
Fridley, did Mr. Billings believe there will a problem with the
employment figures that have been presented by Mr. Burns? Or, does
he think McGlynn will fulfill the things they have talked about as
far as the payroll and numbers.
Councilmember Billings stated based on the less than honest
presentation of their situation, at this point in time, he did not
know what to believe. Although Mr. McGlynn has indicated at this
meeting that the acquisition of the building was separate from the
sale of their frozen products division to Grand Met, he did not
know if he believed that either. He believed this is something
that has been going on all the time, and McGlynn was looking for
somewhere to move their retail.division so they could sell off
their frozen products division.
Councilmember Billings stated that part of the argument for what
the City is doing and part of the argument for the "But -For" Test
was that if the City didn't help McGlynn with this project, they
would be going to North Carolina. Somewhere along the line when
they decided to go to Grand Met, they knew they were not going to
North Carolina. If they were going to move a portion of the
business to North Carolina, it would have been the frozen products
division. More importantly, it is his view that all this was a way
to glean an extra $1 million and make this a multi- million dollar
plus $910,000 deal.
Mr. McGlynn stated the purchase of the building from Grand Met and
the transaction of the frozen products division are totally
unrelated. He did not know why Grand Met approached them about
purchasing their frozen products division. He stated he feels bad
that people think they were deceived along.the way. Up until 5:45
p.m. Tuesday night when the agreement was signed with Grant
Met /Pillsbury, they could not say for sure whether or not the
frozen products division was going to be sold. It has been worked
on for months and months, and they were under confidential
disclosure agreements which McGlynn signed not to disclose that
they were talking or meeting with Grand Met about any part of the
McGlynn business. One of the hardest things with these kinds of
transactions is not being able to inform the public, employees,
customers, suppliers, etc., but the reasons for not disclosing it
are good and valid, and if nothing had come of the negotiations,
it would have saved a lot of people the trauma of worrying about
it.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 9, 1992 - PAGE 8
Mr. McGlynn stated that relative to the fact about building another
plant in another state, they certainly had thought about it, looked
at some development, and talked to other people in the industry who
had developed plants in other states, specifically in North
Carolina. There were many things that had to considered if they
did not sell the frozen products division.
Mr. McGlynn stated that several years ago when they were looking
at expanding in Chanhassen, many of their employees were nervous
and a lot of rumors were flying. He met with virtually every
employee and assured each one that no jobs would be lost, and no
jobs were lost because of that expansion.
Mr. Conners asked what would happen if, .after a year or two,
McGlynn decides to sell the McGlynn retail facility and the Totino
plant. What happens to the development agreement?
Mr. Casserly stated McGlynn can (1) agree to terminate the
development agreement so it would no longer, be effective and
proceed which would eliminate any requirement for the HRA to pay
the note; or (2) transfer the development agreement and "any
proposed transferee shall have the qualifications and financial
responsibility, in the reasonable judgment of the Authority,
necessary and adequate to fulfill the obligations undertaken in
this Agreement by the Redeveloper" (page 20, ii, of the Development
Agreement).
Mr. Commers asked if, in the judgment of the HRA, the transferee
did not have those qualifications, did the HRA have the option to
terminate the Development Agreement?
Mr. Casserly stated that is an option available to the HRA.
NOTION by Ms. Schnabel, seconded by Mr. McFarland, to approve the
Development Agreement and Resolution No. HRA 1 -1992, "A Resolution
Authorizing Execution and Delivery of 'a Contract for Private
Redevelopment by and between the Housing and Redevelopment
Authority in and for the City of Fridley and McGlynn Bakeries,
Inc."
UPON A VOICE VOTE, COMMERS, SCHNABEL, AND MCFARLAND VOTING AYE,
MEYER ABSTAINING, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED
BY A VOTE OF 3 -1.
MOTION TO AMEND by Ms. Schnabel, seconded by Mr. McFarland, to
approve the Development Agreement and Resolution No. HRA 1 -1992,
"A Resolution Authorizing Execution and Delivery of a Contract for
Private Redevelopment by and between the Housing and Redevelopment --
Authority in and for the City of Fridley and McGlynn Bakeries,
Inc. ", and that staff be assured that the surviving entity, McGlynn
Bakeries, Inc., has the financial capability of carrying out the
Development Agreement.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 9, 1992 - PAGE 9
UPON A VOICE VOTE, COMMERS, SCHNABEL; AND MCFARLAND VOTING AYE,
MEYER ABSTAINING, CHAIRPERSON COMMERS DECLARED THE MOTION AS
AMENDED CARRIED BY A VOTE OF 3 -1.
Mr. Commers thanked Councilmember Billings for his comments and
concerns.
2. PRESENTATION OF MAXFIELD RESEARCH GROUP - CITY OF FRIDLEY
HOUSING STUDY:
Ms. Dacy stated that in August 1990, staff recommended that the
HRA conduct a housing study and identified six reasons to hire
Maxfield Research Group. Mr. Lee Maxfield and his assistant, Ms.
Mary Bujold, are at the meeting to present the major findings of
the report.
Ms. Mary Bujold thanked the HRA for allowing Maxfield Research
Group, Inc., to conduct the housing study.- She stated her
presentation would be conducted in three parts: (1) the
methodology of how they conducted the study; (2) general research
findings; (3) brief overall of recommendations.
Ms. Bujold stated that when they started the study, they met with
Mr. Burns and Ms. Dacy to define the work program. They identified
areas and divided Fridley into seven neighborhoods. They reviewed
overall demographic trends nationally and locally and then narrowed
down to look at Fridley within that larger scope. They tried to
analyze some of the strong market influences that are occurring
within Fridley and how that has progressed, specifically through
the 19801s. They interviewed a large number of people who had a
stake in Fridley and housing issues in the City of Fridley: school
administrators, real estate agents, people in churches in each of
the neighborhoods, rental building owners and managers, and many
of the City officials (Parks & Recreation, City Assessor, Fire
Marshall with regard to inspections of rental housing property,
Planning Department, Housing Specialist, and others). They also
spoke with mayor employers in the City.
Ms. Bujold stated they conducted an extensive visual survey of each
neighborhood to assess each neighborhood's strengths and
weaknesses, potential areas for redevelopment, advantages, and
appropriate land uses.
Ms. Bujold stated that from their research, she believed they got
a very good sense of what and who the City of Fridley is. They
found that Fridley is a fully developed suburb. There is very
little vacant land available for new development and that most of
the existing development that will take place will be redevelopment
of areas that are now occupied and some infill development on a
small number of vacant lots.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 9, 1992 - PAGE 10
Ms. Bujold stated the housing stock is primarily older, the
majority of which was built in the 1950's and 19601s; however, the
majority of the housing stock is also very well maintained. They
identified some areas where the housing stock may be deteriorating
somewhat, but they did not find any areas in Fridley where they
felt the housing stock was of a blighted nature and that these are
areas that, through monitoring and programs, could certainly be
maintained and upgraded.
Ms. Bujold stated Fridley has a very strong employment base. Many
people live in Fridley because they want to be near their place of
employment and do work in Fridley or nearby. People believe that
Fridley has very strong school systems. Realtors said that is one
of the many reasons why people want to move to Fridley.
Ms. Bujold stated there is a very strong Neighborhood Crime Watch
Program, and they found it is second only to the City of
Minneapolis as far as the number of neighborhoods and people
participating. They felt this was a very strong indication that
the residents of Fridley are very concerned about their safety, and
neighborhood issues and that they are concerned about maintaining
the livability of their neighborhoods.
Ms. Bujold stated their conversations also indicated that Fridley
has a very strong community loyalty. In other studies they have
conducted, this has not come out as a strong perception. People
want to stay here. Several said they are second and even third
generations in the community, which is highly unusual in this day
and age.
Ms. Bujold stated there are no very large concentrations of rental
housing in the City, which is an advantage to Fridley in that the
rental housing tends to be spread out more. Fridley has a very
good access to freeways and metro highways. This is a distinct
advantage to why people want to move to Fridley.
Ms..Bujold stated Fridley will have to be concerned in the future
about what will be happening with other surrounding communities.
Housing will continue to be a very competitive market, and Fridley
will have to continue to compete for its share of homeowners and
tenants.
Ms. Bujold stated she would like to outline some recommendations
in general:
1. The need to promote Fridley as a desirable residential
community.
2. The need to emphasize the advantages of being in the
Fridley school system, the affordability of housing, and
realize that Fridley must compete with surrounding
suburbs.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 9, 1992 - PAGE it
3. The need to maintain and upgrade existing housing base
and to assist owners, both single family owners and small
landlords, with maintaining properties, either through
education and /or financial assistance.
4. The need to encourage buyers to purchase in Fridley.
There are a lot of renters in Fridley who could also be
a strong market for potential homeowners.
5. The need to provide housing alternatives for empty
nesters and seniors to stay in the community. Through
that process, freeing up necessary housing for first time
homebuyers.
6. The need to provide housing for low to moderate income
renters. Because-of some of the other issues such as
low rents in Fridley, some of the ,housing for low and
moderate income renters has been- created through
preferred maintenance which is not a preferred
alternative for low and moderate income renters.
7. The need to encourage and educate small rental property
owners on how to better screen tenants and better manage
renters.
S. The need to keep cooperation between all the City
services so they can all work together to .create the
desirability of Fridley as a livable community.
Mr. Meyer stated Maxfield Research Group has prepared an excellent
report that he believed will be very useful to the City and the
HRA.
Ms. Bujold stated thanked Mr. Meyer. She stated she thoroughly
enjoyed working on the study. It was extremely interesting.
Mr. Commers asked Ms. Dacy how staff envisions the use of this
study.
Ms. Dacy stated that Mr. Maxfield and Ms. Bujold will also be
making a presentation to the Council at the January 13, 1992,
Council Conference meeting. After that she and Mr. Burns will
outline a process that will be submitted to the HRA and the Council
to evaluate the next step which is to identify priorities. In her
memo dated December 31, 1991, she alluded to some of the things she
feels will need to be addressed. One of the other benefits from
the study is that Maxfield Research Group put together an appendix
of other financial resources, state and federal, and staff is
compiling information of housing programs in other communities.
HOUSING A REDEVELOPMENT AUTHORITY MTG., JANUARY 9. 1992 - PAGE 12
Mr. Burns stated the job ahead of them is to look at the problems
and recommendations the study has provided for each of the seven
geographic areas in Fridley and then try to match the
recommendations with their resources, internal and well as
external, once they have identified their resources. At the staff
level, they see housing as an increasingly important area of
emphasis for Fridley and the Fridley HRA.
Mr. Meyer stated the study gave him a basic overview of the
community that he did not fully have before. It will be a valuable
reference source.
Mr. Commers thanked Mr. Maxfield and Ms. Bujold for coming to the
meeting and for the fine job done on the study.
Ms. Bujold stated that if the HRA members have any more comments
or questions, they are to feel free to either contact her directly
or through Barbara Dacy.
3. REVIEW WAL -MART ARCHITECTURAL PLANS:
Ms. Dacy stated that in the mid- 1980's, there were two development
agreements executed with Vantage Properties, Inc., on this site:
one between the HRA and Vantage and one between the City and
Vantage. The HRA development agreement provided the mechanism for
the assistance for the soil correction. In 1987, the HRA assisted
the development of The Wholesale Club and the property with
$100,000. Wal -Mart is not requesting any assistance.
Ms. Dacy stated the City development agreement, which the HRA
development agreement also required compliance with, spent a lot
of time talking about quality and exterior building materials and
making sure that the two phases of the project were cohesive.
Since Wal -Mart is submitting applications to go through the various
planning approvals for the development, staff believed that it is
important that the HRA be briefed on the type of architectural
exteriors that are being proposed.
Ms. Dacy stated Wal -Mart's consulting firm is BRW, Inc., and Dale
Beckman, the project manager, is at the meeting to describe what
is being proposed.
Mr. Beckman stated Wal -Mart is excited to be in the City of
Fridley. They believe that Fridley offers a lot of opportunities
that provides that "hometown atmosphere ". Wal -Mart started in
small middle Arkansas towns and has now spread throughout the
United States. There are about 1,700 Wal -Mart stores,
approximately 25 in Minnesota. There are also approximately 275 -
Sam's Clubs nationwide. Wal -Mart is the prominent retail developer
in the United States at this time. Sales are estimated at
approximately $40 billion.
HOUSING A REDEVELOPMENT AUTHORITY MTG., JANUARY 9, 1992 - PAGE 13
Mr. Beckman stated the plan proposes a 116,000 sq. ft. Wal -Mart
building which will be constructed directly adjacent to the north
face of Sam's Club, step back approximately 10 feet with a garden
center on the very north edge. Wal -Mart has under option two
additional acres of land (part of the Caba Addition) , which was
not originally addressed in the Vantage development agreement, to
provide them with access to 83rd Avenue, as well as to provide an
area for expanded parking sometime in the future when Wal -Mart
plans to add on approximately 30,000 sq. ft. Wal -Mart is also
acquiring, under the original development agreement, two acres of
the Mar -Len Addition to relocate the detention basin. The 30,000
sq. ft. addition would come off the back side of the building and
would meet all the Zoning Code setback requirements.
Mr. Beckman stated the architectural compatibility for the site is
very important. When Vantage originally came before the HRA to
request assistance for soil correction, part of the agreement was
that Vantage would provide an architecturally - enhanced building on
this location. The development agreement also talked about having
some future valuation of the development in Phase II, about $3
million. With the 116,000 sq. ft. Wal -Mart. development, the
valuation is in the neighborhood of $5 -6 million, so they feel they
have met the intent of the original development agreement.
Mr. Beckman stated Wal -Mart's next task was to try to enhance what
is there today with Sam's Club and combine it with the new building
to make the two buildings blend together.' One of the major
features they wanted to incorporate into the Wal -Mart building was
the brick incorporated in the original Wholesale Club building (now
Sam's Club), and they have done that. He reviewed the
architectural plans with the HRA.
Mr. Beckman stated one of the other features they have worked on
with staff is trying to come up with a way of treating the garden
center that is typical of all Wal -Mart buildings and how to
architecturally enhance the garden center. Wal -Mart usually uses
chain link fencing. Wal -Mart has proposed that in the area where
the garden center faces University Avenue and along a portion of
the garden center that faces 83rd Avenue, they will extend the rock
face block over the edge, create a pillar that runs the whole
height of the garden center, a 2 -foot high knee wall along the
bottom edge, and then a wrought iron railing treatment along the
edge. They believe it will enhance the garden center area and
lends a sense of harmony of the garden center with the rest of the
building.
Mr. Beckman stated that he recently received information that Sam's
Club would like to do a 30,000 sq. ft. expansion on Sam's Club in
conjunction with the Wal -Mart construction. Because of this, they
will have to amend the site plan. They are considering putting the
Wal -Mart building so that the vestibule will be on the north end
to separate the two entrances to the buildings and move the garden
center closer to Sam's Club.
Mr. Dacy stated staff believes that the plans submitted by Wal -Mart
do fulfill the requirements of the original development agreements.
MOTION by Mr. Meyer, seconded by Ms. Schnabel, that the plans as
submitted by BRW, Inc., for the proposed Wal -Mart store do fulfill
the intentions of the original development agreements with Vantage
Properties, Inc., and are acceptable to the HRA.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
4. APPROVAL OF RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES FOR
THE FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY:
NOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve
Resolution No. HRA 2 -1992, "Resolution Designating Official
Depositories for the Fridley Housing and Redevelopment Authority ".
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
5. CLAIMS AND EXPENSES:
a. Check Register (2186 -2189)
MOTION by Mr. McFarland, seconded by Ms. Schnabel, to approve
the check register dated January 3, 1992.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY.
6. RICE PLAZA UPDATE:
This is an update on Rice Plaza 1991 rent for informational
purposes only.
7. DISCUSS TIF POLICIES:
Ms. Dacy stated the Council asked staff to prepare TIF policies
prior to proposing additional modifications to the redevelopment
plan and creation of tax increment districts. Her memo dated
December 6, 1991, identifies three major issues the City Council
asked staff to follow up on after the TIF policies were presented
to the Council on November 25, 1991. Staff will be presenting that
follow -up information to the Council on January 13, 1992. --
Ms. Dacy stated the first part of the TIF policies is a list of
definitions. Two the key definitions are "Cost" versus "Subsidy ".
There is a difference between redevelopment cost and subsidy or
HOUSING A REDEVELOPMENT AUTHORITY MTG., JANUARY 9, 1992 - PAGE 15
assistance they give to a project. They also talked about the
difference between a redevelopment project and ari economic
development project.
Ms. Dacy stated.the meat of the TIF policy issues is on agenda page
7 -C beginning with the General Guidelines. She stated the TIF
policies put together are guidelines; they are not identified
goals. It was an attempt to have both bodies operating off the
same list of policies.
Ms. Dacy stated one of the most important issues the Council asked
staff to evaluate pertains to the percent cap issue of the total
amount of tax capacity that is captured. Policy G under the
General Guidelines states: "The captured tax capacity shall not
exceed 15% of the total tax capacity." Comments from the Council
and the HRA Chairperson Commers were that they do not want to limit
the HRA's flexibility in completing projects such as Lake Pointe
or Southwest Quadrant. The Council asked staff to prepare some
additional information on what 15 really means: Currently, about.
11% is now captured. in tax capacity. More appropriately, the
policy statement should probably be amended to state that if the
tax capacity does approach 15 %, both the HRA and City Council re-
evaluate where they stand in terms of priority projects.
Mr. Casserly stated no one knows if 15% is the right number. He
believed the idea is to have some mechanism whereby the HRA is
forced to review its projects.
Mr. Commers stated he had no objection to a review, but he still
questioned why there should be a specific number. For example, if
they are able to put together a development on the Lake Pointe
site, he could foresee where this criteria would possibly exceed
that 15% cap.
Mr. Casserly stated that is certainly true. The numbers are only
illustrative.
Ms. Dacy stated the Council is getting calls from constituents who
are concerned about the amount of tax capacity in the tax
increment. As stated by Mr. Casserly, this was proposed as an
initial guideline so the options are either to (1) rephrase the
policy statement to give the Council and HRA more flexibility to
evaluate it; or (2) not to state a number, but to say that on an
annual basis, the HRA and Council will take stock of how much of
the tax capacity is in the tax increment. Staff proposed the first
option as a way to get started.
Mr. Casserly stated the more blighted a piece of property is and
the more successful they are in turning it around, the higher the
percentage is going to be. So, if the community has gotten very
stable in its property valuations and is really involved in very
active redevelopment, it may have a somewhat higher percentage.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 9, 1992 - PAGE 16
and may indicate success. The percentage itself is not necessarily
good or bad, but it simply provides some mechanism to review where
they are at.
Mr. Burns stated the danger is it becomes an absolute.
Mr. Commers asked if the concern is that there has been unworthy
projects that should not have been done?
Councilmember Billings stated there are at least two councilmembers
who are very concerned with the percentage of land that is in TIF
districts. It is his personal position that they do not need to
have any. type of cap on it because the City has a very well
qualified HRA and, in addition, they have the balance of having,
by statute, the Council approving the districts.
Councilmember Billings stated that in terms of the 15% figure, that
is a figure that came up at the Council discussion on November 28,
1991. It appeared to him that the rest of the Council was willing
to buy that 15% figure, but then he asked staff to go back and look
at the City's current wish list; namely, Lake Pointe, Southwest
Quadrant, and other projects, and see how they affect that 15 %.
Councilmember Billings stated that when setting the date for the
November 28, 1991, Council meeting, he asked if the HRA was going
to be involved in that meeting. Two councilmembers did not feel
there was a need for the HRA to be involved in that meeting. He
personally thought it was a perfect time to get the HRA and Council
together to talk about this. This is not something that should be
communicated from the HRA through the staff to Council and back and
forth again. As the HRA might remember, he has been saying for the
last four years that there should be more meetings with the HRA and
Council together so they are not talking to each other through
staff.
Councilmember Jorgenson stated that she is the councilmember who
asked staff to look into a cap, not only for the citizens of
Fridley but also for Senator Don Frank and Representatives Wayne
Simoneau and Alice Johnson. There is some concern over tax
increment financing and how it is being utilized in the City of
Fridley. There is a misrepresentation out there that communities
have misused tax increment financing. No one is pointing a finger
at Fridley and saying Fridley has misused TIF, and she did not
believe they have. But, when there are three legislators telling
the public that communities are misusing this tool and the public
is calling the councilmembers asking why they keep having tax
increment districts, the school districts are having troubles
financially, and isn't the City putting more money aside through
the HRA that the City may need to use before these districts
expire, that is why she asked staff to put together some guidelines
using the realization that there are projects out there the City
wants to see done.. She just wants the City and the HRA to be more
8OUBING & REDEVELOPMENT AUTHORITY MTG.. JANUARY 9. 1992 - PAGE 17
careful so they can realize the dreams they 'have for the City
without putting so much into other projects that they cannot
totally realize those dreams.
Mr. Commers stated it might be helpful to invite Senator Don Frank
to one of the HRA meetings to discuss this.
Mr. Commers stated that in the 1992 HRA budget, there is a refund
to the school districts of approximately $370,000, which he would
venture to guess is probably one of the highest in the State of
Minnesota.
Councilmember Jorgenson stated there is a lot of apathy out there
and just a general misconception of tax increment financing and
how it is being used.
Mr. Commers asked if it would be helpful for the HRA to try to
provide some kind of informational meetings or mailings to the
public to help clear up some if this misunderstandings.
Councilmember Jorgenson stated it might be worthwhile, but she did
not know how to correct the misconceptions out there. The three
legislators share these views and pass them on to their
constituents.
Ms. Schnabel agreed with Mr. Commers that it might behoove the City
and the HRA to meet with the legislators to try to find some common
ground of understanding.
Ms. Schnabel stated what makes her a little nervous about a 15%
cap is if they would suddenly get a windfall and be able to develop
some of these projects they want to get developed, then they are
reacting to something. Then they suddenly have to take a look at
this figure and maybe this figure will put some clamps on them that
is not in their best interest at the time. That is part of the
danger of setting these kinds of figures. She is not opposed to
the review part, but it makes her nervous to think that if they do
get the opportunity to be able to get a development going, they
have to scramble to get the number changed for that project. That
then does look manipulative.
Mr. Meyer stated he did not see them reacting to either the Council
or the legislators since the HRA's hands are clean. He did not see
any reason to go with a recommended cap or any cap, but the HRA
should explain its position and that the HRA - feels it is behaving
responsibly.
Mr. McFarland stated he is in favor of policies. It is important
to have a good understanding between the HRA and City Council.
The policies have to be realistic but shouldn't be unduly
restrictive.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 9,-1992 - PAGE IS
Ms. Schnabel stated she believed the HRA has been very conservative
in their decisions. She agreed with Mr. McFarland about policies
and that they are important, but the cap is what she is concerned
about.
Mr. Commers asked what precipitates Councilmember Jorgenson's
concerns about the caps on the redevelopment costs if the HRA was
to take some money from one district and use it in another
district. Did she really want to say that the HRA can only borrow
"x" amount of dollars from one district to use in another district?
Councilmember Jorgenson stated that was not her general intent.
Another argument heard from the Tax Committee is that they are
bleeding from one TIF district into another trying to make
projects work. She talked to Senator Frank about the possibility
of allowing the City greater variance in using monies from one
district to another for housing development and rehab, and he
seemed to be rather receptive to that idea. Then, he comes up with
the other comment that they should not take money from one district
to make another district go.
Mr. Commers stated he did not believe the HRA has any real
objections to the basic guidelines and criteria. Basically, they
have tried to get a consensus of the Council before they have done
any big projects.
Councilmember Billings suggested a compromise on the cap, to change
the language to read that the cap will be 15% for 1992 and this
number shall be reviewed annually by the HRA and Council.
Mr. Burns stated staff is also very concerned about the 125%
maximum cap for industrial and commercial /office redevelopment
projects and 150% for housing redevelopment projects.
Mr. Commers stated the matrix with the economic development caps
should be discussed also. He suggested that the HRA and Council
discuss this further at a joint session.
Mr. Burns stated staff will work on these guidelines and will try
to come back with something more acceptable to the HRA and Council.
8. HRA BUDGET:
Mr. Commers stated the 1992 HRA budget was discussed prior to this
regular meeting and will be discussed again at the February 13,
1992, HRA meeting.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 9, 1992 - PAGE 19
ADJOURNMENT:
NOTION by Mr. McFarland, seconded by Mr. Meyer, to adjourn the
meeting. Upon a voice vote, all voting aye, Chairperson Commers
declared the January 9, 1992, Housing and Redevelopment Authority
meeting adjourned at 10:30 p.m. I
Res ectfully submitted,
Lyh#e Saba
Recording Secretary
..,, -- t
I _
I
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: February 7, 1992
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Receive Bids and Award Contract for Lake Pointe
Development Maintenance Project No..226
Bids were received for the Lake Pointe Development Maintenance
Project No. 226 on Wednesday, January 29, 1992 at 10:00 a.m. The
low bidder was Innovation Irrigation with a bid of $25,945.00.
Approximately 14 companies were requested to bid, 7 companies
responded.
The Public Works Department is recommending that the HRA approve
the contract and award the bid to Innovation Irrigation for
$25,945.00. Last year's contract was with Green Masters Industries
at a cost of $27,680.00. The Green Masters Industries' bid this
year was $30,508.00.
The Public Works Department has
Innovation Irrigation and believes
The 1992 HRA budget anticipated a
Lake Pointe maintenance service.
Recommendation:
investigated the references of
them to be a reputable company.
maximum amount of $30,000 for
Staff recommends the Housing and Redevelopment Authority award the
bid and authorize execution of the contract with Innovation
Irrigation for a total amount of $25,945.00.
BD:ch
M -92 -84
1A
EF1
MEMORANDUM
TO: Barbara Dacy, Community Development PW92 -027
Director
FROM: Jon Thompson, Construction Inspector
DATE: February 6, 1992
SUBJECT:. Lake Pointe Development Maintenance Project No.- 226
Bids were received for Lake Pointe Development Maintenance Project No. 226 on
Wednesday, January 29, 1992 at 10:00 AM. The low bidder was Innovative Irrigation
with a bid of $25,945.00. This included the Base Bid plus Alternates A and B.
Attached is a summary sheet showing the plan holders and bid amounts. Please have
the HRA approve the contract award to Innovative Irrigation for $25,945.00 at the
February 6, 1992 HRA meeting.
JT:cz
Attachment
.4 w0a
BID PROPOSALS FOR
LAKE POINTE MAINTENANCE IMPROVEMENT PROJECT NO. 226
WEDNESDAY, JANUARY 29. 1992. 10:00 A.M.
PLAN HOLDER
BID BOND
TOTAL BID
COMMENT
Innovative Irrigation
5 °/O
$25,945.00
10006 University Ave NW
United
Coon Rapids MN 55433
Provider
Ives Enterprises Inc.
$1,350.00
$26,900.00
1333 Osborne Rd
Fridley MN 55432
Fishers Inc
$1,398.25
$27,965.00
2500 US Highway 88
Minneapolis MN 55418
Chemlawn Commercial Services
5 °/G
$29,420.00
1167 E Highway 36
St. Paul
P O Box 9280
Company
Maple Wood MN 55109 -9921
Greenmasters Inc.
$1,525.41
$30,508.21
92 43rd Ave NE
Fridley MN 55432
Environmental Care of MN
$1,640.50
$32,810.00
P O Box 22681
Cashier's
Minneapolis MN 55422
Check
Walbon Lawn Maintenance
$1,925.00
$38,500.00
3225 Skycroft Dr
St Anthony MN 55418
Albrecht Lawn & Garden Service
No Bid
Rt 5 Box 72C
Buffalo MN 55313
Bleekers Landscape & Lawn Service
No Bid
1602 118th LN NW
Coon Rapids MN 55448
Danielson Snow & Lawn
No Bid
430 Shilling Cr
Forest Lake MN 55025
Isaacson Lawn Maintenance
No Bid
11910 Dassel Lane
Rogers MN 55374
Outside Services Inc
No Bid
P O Box 875
Anoka MN 55303
Talberg Lawn & Landscape
No Bid
100 Wilshire Dr
Minnetonka MN 55343
Timber -N -Turf
No Bid
3171 Spruce St
Little Canada MN 55117
1
[� Community Development Department
D HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: February 7, 1992
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Joint Powers Agreement with Anoka County and
City of Fridley - Mississippi Street and
University Avenue Improvement Project
Anoka County has submitted the proposed Joint Powers Agreement
regarding the Mississippi Street and University Avenue Improvement
Project. The City Council at its January 27, 1992 meeting reviewed
the Joint Powers Agreement and authorized its execution subject to
the HRA review and approval.
In 1990, staff had estimated that the costs to the HRA were as
follows:
Roadway Improvements
Northern States Power
Dairy Queen Purchase
1990 Estimate
$330,000
$105,000
$110,000
$545,000
1992 Estimate
$314,581
$120,000
$125,000
:�55y, bul
The cost of the_ roadway improvements are less than what we
originally anticipated; however, we haves ?n_creased the NSP cost to
$120,000 for installing the overhead utility lines underground.
Also, our cost to acquire the Dairy Queen is still a 1ze�
due to the delay of the Commissioner hearings. _ soc s
are also not incl uded in this calculation. We can provide a better
estimate on the Northern Sta es Power cost as we get closer to
actual construction and update you regarding the expenditures.
At the writing of this report, I was awaiting a confirmation from
Anoka County as to the proposed starting date. We are anticipating
construction- beginning in April or May. The length of the
construction project will be approximately eight to ten weeks. We
are also following up with the Anoka'County staff regarding the
2A
Mississippi /University Improvement Project
February 7, 1992
Page 2
concerns identified at the neighborhood meeting that was conducted
in July of 1991. The primary concern was how the County was going
to handle traffic in and out of Holly Center and the Rice Plaza
Shopping Center during construction.
After we have the responses from the County, I will be notifying
individuals on our mailing list regarding the proposed starting
date and how Anoka County is going to resolve those concerns.
Recommendation:
Staff recommends that the Housing and Redevelopment Authority
concur with the City Council's approval of the Joint Powers
Agreement with Anoka County.
BD:ch
Parks
Streets
Maintenance
MEMORANDUM
TO: Barb Dacy, Economic Development PW92 -019
Director
FROM: John G. Flora, Public Works Director
DATE: January .23, 1992
SUBJECT:. Mississippi Street/TH47 Joint Powers Agreement
The following information is submitted in response to your memorandum dated January
15, 1992, subject as above.
1. The original .agreement was drafted by the County and included all the items
which we requested in the project last year. Since that time the City has moved
forward and completed the. 3rd Street extension and Municipal Liquor Store
.parking lot. This work was to be included in the contract as an add item on a
unit price basis; therefore, the items would not be included in the overall cost of
the project when the project is finalized.
2. Attached is a copy of my letter to the County on November 20, 1990, in which
we requested a number of design changes to be incorporated into the
intersection plan based upon the HRA and Council decision to upgrade the
intersection to the University corridor standards.
3. We have requested NSP to provide us with an update. The 1992 figure for the
work is $120, Ooo, as compared to the estimate in the update of 1990 of
$105,000.
4. The City is always responsible for the electrical power and signaling at
intersections. This is .a standard agreement with the County, unless the HRA is
willing to contribute a repayment to the City, the City has been absorbing this
cost.
5. Again, the City has been absorbing the maintenance cost of street lighting. If the
HRA is interested in contributing into this fund, we can develop figures for cost
reimbursement.
IF
M%
e2C
January 23, 1992
Page 2
6. The current plans call for the placement of crosswalks, red brick and internally
luminated street name signs in the project. Landscaping is not included in the
County work and, therefore, would have to be completed by the City separately
once the County's project is completed. Since we eliminated the various trees
and landscaping from the intersection project, the minor landscaping at the bus
pickup points was not included.
When you contact Paul Ruud of the County Highway Department regarding the
outstanding issues of the neighborhood, you should make note that the intersection at
3rd Avenue has been completed and extended which should not only provide for
improved access to the Sylvan Hills area but should allow for improved access to the
shopping centers during the construction period.
JGF:cz
Engineering
Sewer
Water
Parks
Streets
Maintenance
MEMORANDUM
TO: William W. Burns, City Manager PW92 -012
FROM: John G. Flora, Public Works Director
DATE: January 13, 1992
SUBJECT: Mississippi Street /TH 47-JoiBt Powers Agreement
We have received the Joint Powers Agreement from the Anoka County
Highway Department regarding the improvement of Mississippi Street -
(CSAH No. 6) and University Avenue (TH 47).
The estimated 'cost to the City is listed at $314,581.33. This
amount is below our 1990 estimate of $330,000.
Since the cost *of 'the intersection improvements are to be borne by
the HRA, I recommend -that the HRA authorize the .City Council to
execute the agreement so that the improvement can be processed and
completed in early spring of 1992.
JGF:cz
cc: Barb Dacy
2D
CITYOF
ma"
M1111TRACT N0.
JOINT POWERS AGREEMENT
FOR IMPROVEMENT OF THE INTERSECTION
AT CSAH #6 (MISSISSIPPI STREET) AND TH 47
PROJECT S.A.P. 02 -606-08
This Agreement made and entered into this day of ,1991.by and
between the County of Anoka, State of Minnesota, a political subdivision of the State of Minnesota,
325 East Main Street, Anoka, Minnesota, 55303, hereinafter referred to as "County," and the City
of Fridley, a political subdivision of the State of Minnesota, 6431 University Avenue N.E., Fridley,
Minnesota, 55432, hereinafter referred to as "City."
WHEREAS, the parties to this Agreement consider it mutually desirable to improve the
intersection at CSAH #6 (Mississippi Street) and TH 47; and
WHEREAS, the parties agree that it is in their best interest that the cost of d project be
shared; and,
WHEREAS, said work will be carried out in accordance with the provisions of Minn. Stat.
§ 47159.
NOW, THEREFORE, IT IS MUTUALLY STIPULATED AND AGREED:
1. PURPOSE
The County and City have joined together for the purpose of improving the
intersection at CSAH #6 (Mississippi Street) at TH 47 in the City of Fridley.
2. METHOD
The County shall provide all engineering services and shall cause the construction of
Anoka County Project S.A.P. 02- 606 -08 in conformance with said plans and specifications. The
letting of bids and the acceptance of all bid proposals shall be done by the County.
3. COST'S
a. The contract costs of the work, or if the work is not contracted, the cost of
all labor, materials, normal engineering costs and equipment rental required
to complete the work, shall constitute the "actual construction costs" and shall
be so referred to herein. "Estimated costs" are good faith projections of the
costs which will be incurred for this project. The estimated costs are attached
as Exhibit A, and incorporated herein by reference.
b. The total estimated cost of construction for the project is $816,913.10.
Participation in the construction cost is as follows:
(1) The City shall pay non -state aid portion of the storm sewer system
which is estimated to be 25% of the cost of the storm sewer. The
3
total estimated construction cost is $60,508.00, of which the City's
estimated share is $15,127.00.
(2) The City shall pay for all water system improvements, estimated at
$1,725.00.
(3) The City shall pay 100% of the frame and ring adjustments for which
the estimated cost is $750.00.
(4) The City shall pay for 501-Yo of the cost of roadside curb and gutter not
including the cost of the median curb, concrete driveways and
concrete stone paving used in the medians and boulevards. The
estimated cost of the curb and gutter is $36,105.00, of which the
estimated cost to the City is $12,300.00.
(a) The City shall pay 100% of the concrete stone paving,
estimated at $70,374.00.
(b) The City shall pay 10096 of the concrete driveways, estimated
at $8,112.00.
(c) The City shall pay for all sidewalk which is not replacement
sidewalk, and removal of walk in the Southeast Quadrant of
the intersection in an amount estimated at $12,510.00. The
total estimated construction cost for sidewalks is $40,536.00.
(5) The City shall pay 25% of the cost of reconstruction of the traffic
signal system at the intersection of TH 47 and CSAH #6. The
estimated cost of the traffic control system is $80,000.00, of which the
City's share is $20,000.00.
(6) The City shall pay 100% of the cost of the lighted sign panels,
estimated at $28,000.00.
(7) The City shall pay 100% of the cost of street lighting. The estimated
cost of street lighting is $97,000.00
(8) The City shall pay 100% of the cost of poly pre - formed pavement
markings for this project and striping on its City streets. The total
estimated cost is $1,545.60.
-2-
(9) The City shall pay 100% of the cost for the construction of the
northward extension of Third Street and paving of the Municipal
Parking Lot estimated to be $13,858.00.
(10) The County shall pay all right -of -way costs associated with the project
except that right -of -way in the Southwest Quadrant of the intersection
which shall be acquired by the City. If said plans are changed or
modified after the date of this Agreement, then the City shall pay the
County all right -of -way costs in excess of the right -of -way costs that
have been included under the original plans.
(11) The City shall pay the County for preliminary engineering services at
a rate of eightpercent (8 %) of the actual costs _for sanitary sewer and
water main construction included in the original plans. The estimated
cost of sanitary sewer and water was $47,195.00, with the preliminary '
engineering fee estimated at $3,775.60.
(12) The City shall pay the County for revision of the plans made at their
request in a letter. from the Fridley Director of Public Works, dated
Novepber40 1990. The estimated cost of these extra services is
$7,000.00.
(13) The City shall pay the County for construction engineering services at
b
a rate of eight percent (8 %) of its actual construction costs, excluding
preliminary engineering fees. Total estimated construction costs for
Fridley aze estimated at . 281,301.60, with construction engineering
services estimated at $24504.13.
(14) The total estimated cost to the City is $314,58133 based on the
following itemized estimates;
Storm sewer $15,127.00
Water systems 1725.00
Sanitary frame &.ring adjustment 750.00
Roadside curb & gutter 12,300.00
Concrete stone paving 70,374.00
Concrete driveways 8112.00
Sidewalks 12,510.00
Traffic signal system 20 000.00
Sign panels 28,000 00
Lighting systems 97 000.00
Pre - formed pavement markings 1545.60
-3-
3rd Street & Municipal Lot
TOTAL CONSTRUCTION COST:
Preliminary Engineering:
Construction Engineering.
TOTAL ESTIMATED COST:
13.858.00
10,775.60
22,504.13
$314,58133
C. Upon final completion of the construction the City shall pay to the County,
upon written demand by the County, the actual cost of construction and
engineering, estimated to be $314,58133. The City's share of the project shall
include only construction costs and engineering costs and does not include
administrative or other expenses incurred by the County.
4. TERM
This Agreement shall continue until (1) terminated as provided hereinafter, or (2)
until the construction provided for herein is completed and payment provided for herein is made,
whichever of (1) or (2) shall first occur. The City's obligation to supply ongoing electrical power
costs will survive this Agreement.
S. DISBURSEMENT OF FUNDS
All funds disbursed by the County or City pursuant to this Agreement shall be
disbursed by each entity pursuant to the method provided by law.
6. CONTRACTS AND PURCHASES
All contracts let and purchases made pursuant to this Agreement shall be made by the
County and City in conformance to the State Laws.
7. STRICT ACCOUNTABH=.
A strict accounting shall be made of all funds and report of all receipts and
disbursements shall be made upon request by either party.
& SIGNALIZATION POWER
The City shall be responsible for the ongoing cost of electrical power to the signal and
lighting.
9. MAINTENANCE
The City shall be responsible for the maintenance of the storm sewer system, except
for the catch basins and catch basin leads; the sanitary sewer and water systems; the lighting systems;
all sidewalk, driveways, and concrete paving stone pavement; all landscaping, specifically trees and
shrubs placed by the City after completion of the project and internally illuminated sign panels.
-4-
10. TERMINATION
This Agreement may be terminated by either party at any time, with or without cause,
upon not less than thirty (30) days written notice delivered by mad or -in person to- the other party.
If notice is delivered by mail, it shall be deemed to be received two days after mailing, Such
termination shall not be effective with respect to any solicitation of bids or any purchases of services
or goods which occurred prior to such notice of termination.
11. AFFIRMATIVE ACTION
In accordance with Anoka County's Affirmative Action Policy and the County
Commissioners' policies against discrimination, no person shall illegally be excluded from frill -time
employment rights in, be denied the benefits OL or be otherwise subjected to discrimination in the
program which is the subject of this Agreement on the basis of race,creed, color, sex, marital status,
public assistanci status, age, disability, or national origin.
12. NOTICE
For purposes of delivery of any notices hereunder, the notice shall be effective if
delivered to the County Administrator of Anoka County, 325 East Main Street, Anoka, Minnesota,
55303, on behalf of the County, and the City Manager, City of Fridley,6431 University Avenue N.E.,
Fridley, Minnesota, 55432, on behalf of the City.
13. INDEMNIFICATION
The City and the County mutually agree to indemnify and hold harmless each other
from any claims, losses, costs, expenses or damages resulting from the acts or omissions of the
respective officers, agents, or employees relating to activities conducted by either party under this
Agreement.
14. ENTIRE AGREEMENT REOUQtEMENT OF A wRrnNG
It is understood and agreed that the entire agreement of the parties is contained
herein and that this Agreement supersedes all oral agreements and all negotiations between the
parties relating to the subject matter thereof; as well as any previous agreement presently in effect
between the parties relating to the subject matter thereo£ Any alterations, variations, or
modifications of the provisions of this Agreement shall be valid only when they have been reduced
to writing and duly signed by the parties herein.
-5-
IN WITNESS WHEREOF, the parties of this Agreement have hereunto set their hands on
the dates written below:
COUNTY OF ANOKA CITY OF FRIDLEY
By.
Dan Erhart, Chairman
Board of Commissioners
Dated:
ATTEST
By:
John "Jay" McLinden
County Administrator
Dated:
REC7aw, ED FOR APPROVAL
By. /e/ IZe,��
Paul K. Ruud
County Engineer
Dated: /— �� ?%
APPROVED AS TO FORM
By:
Dan Mint
Assistant County Attorney
Dated:
akk—tra-tvr1a -47jpa .
-6-
By:
Name: William J. Nee
Title.
Dated:
By:
Name. William W. .Burns
Title. - Ci ty Manager
Dated:
EXi1TBIT A
Cost Sharing Agreement for Projects Constructed in -
Anoka County Using County State Aid Funds or Local Tax Levy Dollars
ITEMS
Concrete Curb & Gutter
Concrete Sidewalk
Concrete Sidewalk Replacement
Concrete Curb & Gutter for
Median Construction
Concrete Median
Grading, Base & Bituminous
Storm Sewer
Traffic Signals
(Communities larger
than 5,000)
of
of the
Traffic Signal
(Communities less
than 5,000)
Engineering Services for
construction
Right of Way
COUNTY SHARE
50%
0
100%
100%
100%
100%
Based on State
Aid Letter
12 of the cost of
its legs of the
intersection
100%
90 +%
100%
CITY SHARE
50%
100%
0
0
0*
0
Based on State
Aid Letter
the cost of its leggy
of the int om on
plus 12 the cost
the County legs
intersection
0 **
8% of its actual
construction cost
0 * **
The County pays for 100% of a Standard Median Design such as plain concrete. If a
community requests decorative median such as red brick, stamped concrete, or exposed
aggregate concrete the City will pay the additional cost above the cost of standard median.
* In communities less than 5,000 people the County pays for 100% of the cost of the traffic
signal effective in March of 1986. The County collects on behalf of the cities (less than
5,000) "Municipal State Aid Dollars" since they do not themselves qualify for state aid funds.
These funds are used to pay the City Share.
* * * In the event that the City requests purchase of right -of -way in excess of those right -of -ways
required by county construction the cities participate to the extent an agreement can be
reached in these properties. For instance a city may request a sidewalk be constructed
alongside of one of our roadways which would required additional right of way, in this case
the City-may pay for that portion of the right_of way.
cIVWKlcON7RACrx ) m AFOR
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I-/ Community Development Department
u HOUSING AND REDEVELOPMENT AuTHonrry
City of Fridley
DATE: February 7, 1992
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Conveyance of Easement to Anoka County, Dairy
Queen, 280 Mississippi Street
I had hoped that the Commissioner hearings regarding the value of
the Dairy Queen property would have been concluded by Thursday's
meeting. Unfortunately, at the January 27, 1992 Commissioner's
hearing, only two of the three Commissioners attended. The
Commissioner's hearing was postponed until sometime in the first
week of March. Nonetheless, the HRA took possession and fee
ownership of the site on July 25, 1991. A 40 foot easement needs
to be dedicated. to Anoka County so that they can accomplish the
Mississippi Street improvement project.
Recommendation:
Staff recommends the Housing and Redevelopment Authority authorize
the Chairperson and Executive Director to execute the attached
easement and record it at Anoka County.
BD:ch
M -92 -86
Easement
Corporation(s) to Corporations)
No delinquent taxes and transfer entered;
Certificate of Real Estate Value () filed
( ) not required
Certificate of Real Estate Value No.
,19
County Auditor
by
Deputy
STATE DEED TAX DUE HEREON: $
Date , 19
FOR VALUABLE CONSIDERATION, The Fridley Housing and Redevelopment Authority.
innesot Grantor, a public body and Corporate politic under the laws of Minnesota, hereby
conveys an easement to the County of Anoka. Minnesota. Grantee, a governmental unit under
the laws of Minnesota real property In Anoka County, Minnesota, described as follows:
A 40 foot street, utility, bikeway /walkway, landscaping and street lighting, construction and
maintenance easement described as follows:
The northerly 40 feet measured from the most northerly tine of the East 75.1 feet, Lot 3, Block
1, Sylvan Hills Plat 5, Anoka County Minnesota
John 'Jay' MoUnden - County Administrator
Subject to reservations, restrictions and easements of record, if any, together with all
hereditaments and appurtenances belonging thereto, subject to the following exceptions:
Fridley Housing and Redevelopment Authority
BY.
Lawrence R. Commers
Its Chairman
STATE OF MINNESOTA) BY:
)ss William W. Bums
County of ) its Executive Director
The foregoing instrument was acknowledged before me this day of ,
1991, by Lawrence R. Commers and William W. Bums. the Chairman and the Executive Director
of The Fridley Housing and Redevelopment Authority. Minnesota a public body and Corporate
politic under the laws of Minnesota on behalf of the Fridley Housing and Redevelopment
Authority.
Signature of Person Taking Acknowledgement
Title
Tax Statements for the real property described in this
Instrument should be sent to:
THIS INSTRUMENT WAS DRAFTED BY:
City of Fridley
6431 University Ave., N.E.
Fridley, MN 55432
2A
�z
V Community Development Department
D HOUSING AND RmEVELopmENT AUTHORITY
City of Fridley
DATE: February 7, 1992
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Approval of 1992 Budget
At the January 9, 1992 HRA meeting, the Housing and Redevelopment
Authority directed staff to make two adjustments in the proposed
1992 budget. The adjustments were to subtract potential fees for
Springsted in the amount of $30,000 and to allocate only $2,500 for
Rice Plaza Shopping Center maintenance items. The budget has been
amended accordingly and I have attached the budget detail sheets
and the overall expenditure detail for the HRA to review.
Please note that we have lost Children's Charm as a tenant,
effective March 1, 1992. Based on the analysis that I prepared for
the HRA on January 9, if we retain the remainder of the tenants,
we will lose about $1,500 (revenues minus expenditures). If one
more tenant leaves the center, we should re- evaluate the option of
proceeding with demolition immediately.
Recommendation:
Staff recommends that the Housing and Redevelopment Authority
approve the 1992 budget as presented.
BD: ch
M -92 -87
A
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4E
City of Fridley BUDGET 1992
State of Minnesota
41100 Administrative Charge
41101 Full time - regular
41102 Full time - regular, of
41104 Temporary - regular
41105 Temporary - regular, of
41112 Employees leave
41120 Medicare contribution
41121 PERA contribution
41122 FICA contribution
41131 Health insurance
41132 Dental insurance
41133 Life insurance
41134 Cash benefit
41140 Unemployment compensation
41150 Worker's compensation
41170 Work order transfer
TOTAL
SUPPLIES:
42200 Office supplies
42210 Operating supplies
42212 Fuels and lubes
42217 Clothing/laundry allowance
42220 Repair & maintenance supplies
42225 Small tools and minor equipment
TOTAL
OTHER SERVICES AND CHARGES:
42229 Work order transfer c
42300 Professional services
42320 Communication.
42330 Transporation
42340 Advertising
42345 Dues and subscriptions
42350 Printing and binding
42360 Insurance, non-personnel
42370 Conferences and school
42380 Utility services
42400 Services contracted
42410 Rentals
42430 Miscellaneous
42450 Payments to other /contribution
TOTAL
CAPITAL OUTLAY:
45510 Land/Special Assessments
45520 Building
45530 Improvements other than bldg
45540 Machinery
45560 Furniture and fixtures
TOTAL
TOTAL EXPENDITURES
O --
0 0 0 157,297 157,297 163,572
0 0 2,701 1,113 275 950
0 0 171,510 460,009 353,076 617,390
0 0 1.282,681 788,673 178,087 737,448
0 0 1,456,892 1,407,092 688,735 1,519,360
Submitted by Barbara Dacy /Paul Hansen
Department
COMMUNITY DEVELOPMENT
I Account
No.
42300 1 Professional Services
Audit Fees
Attorney Fees -
Bama Guzy
Popham -Haik
Jim O'Meara
* Jim Casserly
Non - programmed studies
Kordiiak
Total
CITY OF FRIDLEY
Attachment B
Budget Detail Form
Dollar
Amount
Requested
IncJDec.
Over Last Year
(34,400)
Total Budget
Requested
104,675
Budget Year . 1992
Division
City Manager's I Council's
Recommendation Decision
2,375
16,000
10,000
5,000
40,000
28,000
3,300
104,675
* Partially offset by development application fees; in 1991, $6,025.00 was offset by fees.
t-4C
CITY OF FRIDLEY
Attachment B
Budget Detail Form
Submitted by Barbara Dacy /Paul Hansen Budget Year 1992
1COMMUNITY DEVELOPMENT
Account
No.
42400 (Services Contracted:
Non — Professional
Dollar
Amount
Requested
Inc. /Dec.
Over Last Year
20,938
Total Budget
Requested
76,238
Courier service to chair, clients, consultants
Lake Pointe maintenance service
Lake Pointe treelfertilizer maintenance
Microfiche (for Finance Department)
Micro computer charge
Mini computer
Mini computer hardware and software (1 yr only
Sprinkler maintenance
Rice Plaza maintenance
Rice Plaza tenant space refinish
Appraisal fees
Total
City Manager's. I Council's
Recommendation Decision
250
30,000
7,500
150
703
1,630
14,505
10,000
4,000
2,500
5,000
76,238
i
�
a
CITY OF FRIDLEY
Attachment B
Budget Detail Form
Submitted by Barbara Dacy /Paul Hansen Budget Year 1992
1COMMUNITY DEVELOPMENT
Account
No.
42400 (Services Contracted:
Non — Professional
Dollar
Amount
Requested
Inc. /Dec.
Over Last Year
20,938
Total Budget
Requested
76,238
Courier service to chair, clients, consultants
Lake Pointe maintenance service
Lake Pointe treelfertilizer maintenance
Microfiche (for Finance Department)
Micro computer charge
Mini computer
Mini computer hardware and software (1 yr only
Sprinkler maintenance
Rice Plaza maintenance
Rice Plaza tenant space refinish
Appraisal fees
Total
City Manager's. I Council's
Recommendation Decision
250
30,000
7,500
150
703
1,630
14,505
10,000
4,000
2,500
5,000
76,238
a° 0
Community Development Department
HOUSING AND REDEVELOPMENT AUTHoRITY
City of Fridley
DATE: February 7, 1992
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Approval of Third Amendment to Leasehold
Agreement, Columbia Park Properties
Mike Hurley, the attorney for Columbia Park Properties, has been
working with Jim Hoeft to rectify legal description errors in the
lease for the parking lot for Columbia Park Properties, the current
owner of Fridley Plaza Office Building. The.proposed amendment to
the leasehold agreement corrects a legal description error in
describing the lot line around the northwest corner of the .parking
ramp on the east side of the Municipal Center. Jim Hoeft has a
detailed colored map which I can present at the'F.ebruary 13, 1992
meeting. The agreement pertains only to the legal description and
no other part of previous agreements. Columbia Park Properties is
current on the lease payments.
Recommendation:
Staff recommends that the Housing and Redevelopment Authority
authorize the Executive Director and Chairperson to execute the
agreement and record it at Anoka County.
BD:ch
M -92 -88
I'
f, •a
5A
THIRD AMENDMENT TO LEASEHOLD AGREEMENT
0
FIRST AMENDMENT TO MEMORANDUM OF LEASEHOLD AGREEMENT
This Amendment, entered into this day of
, 1992, by.and between THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA
(hereinafter called the "HRA "), and COLUMBIA PARR PROPERTIES, a
Minnesota Partnership (hereinafter called "Redeveloper ").
WHEREAS, on the 20th day of September, 1982, the HRA and the
Fridley Plaza Office Building PartnershIp entered into a
Leasehold Agreement which required the HRA to provide the Fridley
Plaza Office Building Partnership .with the non - exclusive right to
a 166 car parking lot; and
WHEREAS, the Leasehold Agreement was amended pursuant to
Amendment to Leasehold Agreement, dated January 31, 1989,
providing for the construction of a parking ramp on the site of
the parking lot; and
WHEREAS, the Leasehold Agreement was further amended by
instrument, dated February 22, 1989, to revise the legal
description of the property subject to the Leasehold Agreement to
afford the Fridley Plaza Office Building Partnership additional
vehicle ingress and egress access to the parking ramp parcel; and
WHEREAS, the HRA and the Fridley Plaza Office Building
Partnership entered into that certain Memorandum of Leasehold
Agreement, dated February 22, 1989, filed March 9, 1989, in the
Office of the Anoka County Recorder as Document No. 842658, to
establish the Leasehold Agreement of record; and
WHEREAS, the Fridley Plaza Office Building Partnership
assigned its interest in the Leasehold Agreement to Performance
Investments, a Minnesota Partnership, by Assignment, dated March
3, 1989; and
WHEREAS, Performance Investments assigned its interest in
the Leasehold Agreement to "Redeveloper" by Assignment of
Leasehold Interests, dated August 29, 1991; and
WHEREAS, the parties have discovered that the new legal
description is not correct and the parties agree that the
Leasehold Agreement, as amended, should be further amended.
NOW, THEREFORE, the parties to this Agreement, in
consideration of the promises, covenants and agreements made by
each to the other, do hereby agree as follows:
�I
1. That Exhibit A -1 attached to the Second Amendment to
Leasehold Agreement and Exhibit A attached to the
Memorandum of Leasehold Agreement shall be deleted in
their entirety and replaced by the following legal
description:
Lot 15 and all that part of Lot 7, Block 1,
Fridley Plaza Center, Anoka County, Minnesota,
lying easterly of the following described line:
Commencing at the northwest corner of Lot 14,.said
Block 1; thence North 89 degrees 58 minutes 45
seconds East, along the north line of said Lot 14,
a distance of 13.00 feet, to the point of
beginning of the line to be described; thence
North 0 degrees 47 minutes 15 seconds East a
distance of 213.23 feet to a point on the line
common to Lots 6 and 7, said Block 1, said point
being 3.00 feet westerly from the southeasterly
corner of said Lot 6, and said line there
terminating.
2. That except as amended herein, said Leasehold
Agreement, as amended, and Memorandum of Leasehold
Agreement are hereby confirmed as modified.
IN WITNESS WHEREOF, the parties hereto have caused this
instrument to be executed as of the day and year first above
written.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR
THE CITY OF FRIDLEY, MINNESOTA
BY:
Lawrence R. Commers
Its Chairman
BY:
William W. Burns
Its Executive Director
STATE OF MINNESOTA )
)ss.
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this
day of , 1992, by Lawrence R. Commers,
Chairman, and William W. Burns, Executive Director, of The
Housing and Redevelopment Authority in and for the City of
Fridley, Minnesota, a political subdivision of the State of
Minnesota, on behalf of said Authority.
COLUMBIA PARR PROPERTIES
BY:
A Partner
BY:
A Partner
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this
day of , 1992, by
and by , two of the Partners of
Columbia Park'Properties, a Partnership under the laws of the
State of Minnesota, on behalf of the Partnership.
THIS INSTRUMENT WAS DRAFTED BY:
BARNA, GUZY & STEFFEN, LTD. (JDH)
400 Northtown Financial Plaza
200 Coon Rapids Boulevard
Minneapolis, MN 55433 -5894
(612) 780 -8500
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06- Feb -92
RICE PLAZA 1992 RENT
METZ BAKING
kpVeM
0.00
CHILDREN CHARM
0.00
HONG KONG KITCHEN
877.02
877.02
MY SISTER'S CLOSET
672.30
672.30
CINNAMON SKIN TAN
5,600.00
5,600.00
RAPIT PRINTING
1,076.00
1,076.00
HEARTSTRINGS
"ob
0.00
TOTAL 18,225.321
8,225.32
YEAR TO DATE 18.225.321
8.225.32
7A
JAN D 9 1992
January 6, 1991
City of Fridley, HRA
6400 University Ave NE
Fridley, MN 55432
Dear Jim Kordiak=
As a follow -up to our conversation with you last week
regarding the vacant space next to our business, your offer
of $7.47 /sq ft is too high.
1. We have outgrown our current location and will have
to relocate to another location if*we are unable to come to
an agreement. leaving yet another empty space.
2. Traffic in the mall has decreased substantially
since the loss of the dry cleaners and the bread store,
leaving us in a decreased sales.
3. We anticipate even further traffic problems with '
the road construction.
• 4. In February there will be another vacant space,
leaving five out of nine spaces vacant.
5. Due to the lack of traffic, the appearence and
condition of Rice Plaza - it is becoming very difficult to,
,justify leasing space at this location. We need an
incentive to continue doing business here.
Sincerely,
Q4\+ &-JL—
Anew Review /Children's Charm
571 -2471
Jeanne Dufresne
Deborah Kidder
cc: Bill Burns v/
Barb Dacey
-'!
r
J
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: February 7, 1992
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Proposed HRA Newsletter
In conjunction with the budget preparation for 1992, the HRA seemed
agreeable to having an insert in the newsletter pertaining
specifically to HRA items. In an effort to accomplish this, Jim
Froehle and I have prepared potential articles which are attached
for your review and the Housing and Redevelopmerit.Authority.
Any changes, suggestions, or comments should be directed to my
attention as soon as possible so that we can incorporate this into
the newsletter.
BD:ch
M -92 -89
E
HOW TIP WORKS
The above chart is an illustration of tax increment financing.
When a tax increment district is established,, the property does not
become tax exempt. The property value at the time the district is
created is merely frozen. The property owner continues to pay
taxes to all jurisdictions -- county, school districts, and city - -at
the rate and value at which it was frozen. When property is
redeveloped or developed, taxes are paid on the value of the new
improvements., building, and parking areas. The difference between
the new value and the original frozen value is the tax increment.
In 1988, the City of Fridley's 't Council and Housing and
Redevelopment Authority adopted polic, of returning to the school
districts that portion of tax inc which is a result of school
referendums. The City of Fridley is one of few metropolitan area
communities that adopted such a practice.
All developments in tax increment districts must meet the "But For
Test" as stipulated in the Minnesota State Statutes. The "But For
Test" means that without the public investment, the project would
not occur within the foreseeable future.
b
EXAMPLE OF TAXES GENERATED FROM
DEVELOPED AND NON - DEVELOPED PROPERTY
♦s
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♦ ♦ ♦ ♦. ♦ ♦• ♦1• ♦r ♦. ♦ ♦♦ ♦ ♦ ♦•
YEARS • ♦ ♦ ♦ ♦ ♦`
TAUS GENERATM 8—ZO YEARS
.. WRMWITDEMOPMENT •::: � TAXES
1:
a
8C
RECENT TIF PROJECTS
In 1991, the HRA created two new tax increment districts for
,redevelopment projects. The former Cub Food site at 250 Osborne
Road N.E. was rehabilitated into a multi- tenant commercial
building. The Pillsbury- Totino plant at 7350 Commerce Lane was
purchased by McGlynn Bakeries, Inc., and is under rehabilitation
for conversion to a retail bakery.
Osborne Crossings, the former Cub Food site, contains Pet Food
Warehouse, Metz Bakery, and Stone Fabrics. A vacant bay remains
to be leased. Total project rehabilitation costs totalled $450,000
and included a new roof, extensive interior remodeling,.and outdoor
parking lot improvements including a larger landscaping area along
Osborne Road, seal- coating the parking lot, and parking lot
striping.
Creation of the tax increment district stemmed the decline of the
property value and, at the same time, enabled the HRA to provide
up to $65,000 of assistance to accomplish the rehabilitation. The
building was vacant for three years and prior to the long term
vacancy, it was occupied by Conoco and Cub Foods.
McGlynn Bakeries, Inc., will open its corporate headquarters and
retail bakery facility in the fall of 1993. Until then, the
building will be under extensive rehabilitation, at a cost of
approximately $4,800,000. The HRA authorized up to $649,542 of tax
increment (present value) over 14 years. McGlynn Bakeries will
'&e- the money to rehabilitate the building. The move to
ti Fridley will bring 217 existing jobs and 33 new jobs by 1995.
E60 N
MISSISSIPPI STREET IMPROVEMENTS
Anoka County will begin construction on Mississippi Street between
5th Street on the east side of University Avenue to Second Street
on the west side of University Avenue in The project
is located in the City's first tax increment district, the Center
City District. The proposed project is a long time in coming and
will improve the Mississippi Street and University Avenue
intersection.
Traffic counts for 1990 show that Mississippi Street east of
University Avenue accommodates 14,500 average daily trips.
Mississippi Street on the west side of University Avenue
accommodates 11,577 trips. There are also a large number of left
turning movements from Mississippi Street onto University Avenue
depending on the time of day.
To improve the long lines of traffic during rush hour, a lane in
both.directions will be added on Mississippi Street. There will
be a dedicated right turn lane, two through lanes, and a dedicated
left turn lane. Anoka County indicates that it will take 8 -10
weeks to complete the construction project.
The Housing and Redevelopment Authority has authorized the
installation of the double ball lights like the lights along East
Moore Lake Drive. Also, the red brick paving stones installed in
the Moore Lake Commons area and along East River Road and Highway
65 will also be installed along Mississippi Street. Overhead
utility lines will be placed underground. All of these
improvements will help the overall appearance of the intersection
and Center City District.
The City has installed a temporary road extension of Third Street
between the liquor store and Rice Plaza shopping center. There
will be a new median in Mississippi Street 300 feet west of the
intersection. The frontage will remain, but it will become a right
in /right out intersection. The road next to the liquor store will
allow for westbound turning movements onto Mississippi Street from
the Rice Plaza shopping center and businesses to the south of it.
A new realignment of the road will be contemplated when the
southwest corner is redeveloped in the future.
A neighborhood meeting was conducted in July 1991 with the business
owners and property owners along the affected area of Mississippi
Street. Anoka County is working on resolving temporary access
issues with the property owners.
Finally, the signalization at University Avenue and Mississippi
Street will be improved. New mast arms will be installed and new
cross -walk markings on the pavement will be added to be more
pedestrian - friendly.
Community Development Department
D HOUSING AND REDEVELOPMENT A�JTHORPPY
City of Fridley
DATE: January 17, 1992
TO: William Burns, Executive Director of HRA
FROM: vAE�arbara Dacy, Community Development Director
SUBJECT: 'Summary of Proposed Tax Increment Act of 1992
At the Community Development Committee meeting of the North Metro
Mayors' Development Association on January. 14, 1992, Jim Casserly
and Dick Graves from the Minneapolis Community Development Agency
presented the Proposed Tax Increment Act of 1992. The Act is
intended to rectify inconsistencies in previous law and to
reorganize the Act into a. user - friendly_ format. Casserly and
Graves - prepared a three -page summary,'as well as the full text of
the bill. Synopsis of the major policy changes is on page 2 of
the summary which identifies nine changes to the law. - I am
distributing this to you, Rick Pribyl, and Paul Hansen for review.
Please provide any comments to me'and I will.forward those back to
Casserly.
other agenda items discussed at the meeting included articles for
the NMMDA publications such as Northern Lights, Business Media, and
the Focus insert in the Business Media newspaper. The editor of
those publications was in attendance and was asking for special
profile ideas that any of the communities would have. I suggested
that since the McGlynn project is now finalized, a'profile on Bert
McGlynn and Rose Totino could be an idea. other ideas included
developing a list of all the industrial parks in the north metro
area with key contact names for each of the industrial parks. Dave
Childs from New Brighton suggested that there should also be an
article about the communities trying to avoid developers who
"subsidy shop" and to focus on how the communities are trying to
work together rather than compete against one another.
Also, Phil Cohen distributed a potential new housing program. called
the Metropolitan Housing Revitalization Fund. He will be making
a presentation to the legislature to request the funding and ask
for 4 -5 slides from each community of neighborhood blight. Michele
has been working with me to take pictures of various spots in
Fridley and submit that to Cohen.
9A
Summary of Proposed Tax Increment Act of 1992
January 17, 1992
Page 2
Joe Strauss also indicated that the developer of the handicap
project in Champlin is looking for an eastern metro location,
possibly New Brighton,- Fridley, or Blaine. I contacted the
Champlin City Manager and asked for the developer's name and
address. This could be a potential new construction idea in
Fridley. He will also be preparing information on the TIF package
that was put together for that project.
Brad Hoffman was elected to chair the committee through 1992. We
will be meeting on the second Tuesday in March, June, September,
and December. I really enjoyed the meeting, since it was good to
converse with counterparts from the north metro area.
BD:ls
M -92 -36
•
SUMMARY OF PROPOSED TAX INCREMENT ACT OF 1992
WHAT IS THE PURPOSE OF THE PROPOSED TAX INCREMENT ACT OF 1992?
Reorganizing into a "user friendly" format. One of the goals
of the proposed redrafting of the tax increment laws is a
reorganization of the statutory provisions into do more a "user
friendly" format. The original tax increment act, year since 1979,
was not well organized and has been amended every y
with subject matter scattered throughout the act. Currently,
authorities and municipalities have to hire attorneys and
consultants to wind their way through the act for a simple
interpretation of its terms. For example, although the
determination of the "original net tax capacity" under existing law
is generally made under Section 469.177, Subdivision 1, it is also
necessary to consult the provisions of Sections 469.174,
Subdivision 78 469.175, Subdivisions 4 and 6, and 469.1778
Subdivision 4 and 7, to ascertain the original net tax capacity of
a district. This scattering of related provisions is a trap for
the unwary. In the proposed law, all provisions relating to the
determination of the na tax ca acity"� ;d^stfictth� re
(Section 5, Subdivisions 3 and 4.).
Defining terms and placing in alphabetical order. In Section
1, all defined terms are placed in alphabetical order.
alphabetizing is employed throughout the provisions of the proposed
law. All technical terms are given definitions (unlike existing
law, the term_Otax increment" is defined) and substantive law has
been transferred from the definitions to the text of the law.
Reararmin 1n""'
ted an
Existing law contains some provisions that are not well draf
a few that are virtually incomprehensible (e.g., Section 469These
Subdivision 7, and Section 469.1771, Subdivision 4(a)).
provisions have been drafted in a more readable and understandable
form in the proposed law. There are also errors in existing law
that have been corrected. _
Reconciling inconsistent provisions in existing law. The
proposed law also attempts to redoncile a significant number of
inconsistent provisions -in - existing law. For example, Section
469.176, subdivision- 4p
d- y�ovide_s_t iat "tax increment from a housing
district must be used solely to finance the cost of housing
protects_ yet section 469.175, subdivision la requires the use
of tax increment to pay some of the costs of county road
improvements under cer gin ands. –
Amendments to substantive provisions. Finally, a limited
number of amendments. to substantive provisions of existing law have
been made in the proposed law. The proposed legislation:
9C
1. Creates two new types of tax increment districts:
manufacturing, including tourism in the non - metropolitan
area, and hazardous substance;
�) � 2. Eliminates renewal and renovation districts,
��
3. Permits economic development districts outside the
. metropolitan area in cities with populations of 10, 000 or
less;
N
4. Creates a "qualified" district where the general
19
C� educational levy- is not part of the tax increment
payment;
` 5. Provides for reporting by project instead of district;
6. ';Eliminates the LGA HACA deduction and uses the qualified
) distr3'Lwt-1U tations instead;
Imposes tight restrictions on transferring revenues from
an authority to other units of government; and
S. Provides specific provisions for internal borrowing in
lieu of issuing tax increment bonds;
C billows pooling and eliminates the five year limitation on
spending 'for redevelopment and hazardous substance
districts and the tourism portion of manufacturing
districts.
a y
WHAT IS THE REFORMATTED STRUCTURE OF THE PROPOSED TAX INCREMENT ACT
OF 1992?
Section 1. As in existing law, the definitions are included in
Section 1 [469.179] of the Act. Existing terms have been more
j� accurately defined, substantive provisions have been transferred
from the definition section to the text of the law, all technical
terms have been defined, and all terms have been alphabetized.
cll Section 2. Section 2 [469.1791] includes provisions that are
/_ r, generally applicable to all tax increment districts. This section
deals only with the provisions relating to the creation and
termination of a district, clearly stating the conditions for
creation of a district, the exact date on which a district will be
deemed created,- as well as the date it can be terminated and the
conditions under which it can be terminated.
'{ \Section 3. Section 3 [469.1792] sets forth the requirements for
z eation of a tax increment district that are specific to each type
district. Substantive provisions that are in the definition
ction for type of istrict in existing law as well as other
ovisions relating t type of district scattered throughout the
isting act are consolidated in this section.
Section 4. Section 4 [469.1793] consolidates all the reporting
requirements of existing law into one comprehensive section.
Section 5. Section 5 [469.1794] contains all the provisions that
define the methods and procedures for calculating tax increment.
Technical terms are precisely defined in Section 1 of the proposed
legislation, making this section easier to read and understand.
Section 6. Section 6 [469.1795] sets forth the provisions that
prescribe the authorized uses of tax increment and the provisions
that impose limitations on the uses of tax increment that are
generally applicable to all districts.
Section 7. Section 7 [469.1796] includes the limitations on the
uses of tax increment that are specific to each type of tax
increment district. Specific limitations included in the
definition section in existing law for types of tax increment
districts have been transferred to this section.
Section 8. Section 8 [469.1797] incorporates nearly verbatim the
bonding terms of the existing law with the exception of a new
subdivision 7.
Section 9. Section 9 [469.1798] includes the enforcement
provisions of the act.
Section 10. Section 10 [469.1799] includes the provisions relating
to the effective dates for the provisions of the proposed law.
24033
9D
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Community Development Department
HOUSING Arm R- mF;1mLOPMENT AuTHORm
City of Fridley
DATE: February 7, 1992
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Proposal from Center One Corporation
We have received a proposal from James Funk, President of Center
One Corporation, to construct a 90,000 square foot shopping center
in the southwest quadrant. Mr. Funk has submitted initial - income
and rental projections, as well as providing' us with a list of
potential costs of the project. I understand that Jim Casserly has
been asked to do a preliminary analysis of the proposal. As you
know, we met with Mr: Funk and Mr. A. J. Remmen in December to
provide them with the history of the site and other specific
information.. This is being presented to the HRA for information
only and possibly Jim or you will have another update by Thursday's
meeting.
BD:ch
M -92 -90
17
fZ
b
CENTER ONE CORPORATION
211 EAST 240th STREET
JORDAN; MN, 55352
(612) 758 -2627
January 16, 1992
Mr. Bill Burns:
City Manager
City of Fridley
6431 University Ave. N. E.
Fridley, Mn. 55432
Dear Bill:
As per our meeting a few weeks ago, I am enclosing cost
and income projections for a 90,000 square foot shopping
center at University and Mississippi.
You.will note this will require approximately $700,000.
of equity to-develope the center on this site if we have
a 99 year ground lease. If the land were to be purchased
the equity requirement would be increased greatly. Each
tenant lease will have a percentage of sales clause. They
will, therefore, pay the greater of the minimum rent or
the percentage rent which means the total rent will con-
tinue to increase.
Bill, please review this data and call or write to me
with.any questions or suggestions and lets see if we can
further this project.
Sincerely,
m
e�4,es D. Funk, President
JAN 2'40 A
1992
INCOME PROJECTION
FRIDLEY SHOPPING CENTER
University and Mississippi
INCOME
Gross Annual Rental $1,287,500.00
COSTS
Ground Lease (5% of Net Rental) 42,300.00
Vacancy 7% 90,000.00
Debt Service 52M/11%/25 years 647$50.00
C A M 435'.000.00
TOTAL; COSTS $1:,2149 650.00
NET "INCOME $: 72:,:85.0.00
4.
C A M - Tenants Share:
Maintenance $ 45,000.00
Insurance 15,000.00
Taxes 300,000.00
Management 75,'GOO. 00
C A M Rental $435,000.00
TOTAL RENTAL $1,287,500.00
10C
RENTAL PROJECTION
FRIDLEY SHOPPING CENTER
University and
Mississippi
ANNUAL RENTAL
Food Store
$ 8.00
square
foot
$280,000.00
Drug
$ 9,00
square
foot
112,500.00
Hardware
$ 7.00
square
foot
70,000.00
General Retail
$12.00
square
foot
390,000.00
Net Rental
$852,500.00
C A M - Tenants Share:
Maintenance $ 45,000.00
Insurance 15,000.00
Taxes 300,000.00
Management 75,'GOO. 00
C A M Rental $435,000.00
TOTAL RENTAL $1,287,500.00
0
COST PROJECTION
r FRIDLEY SHOPPING CENTER
University & Mississippi
ASSUMED BUILDING AREAS:
Food Store 35,000 S.F.
Drug 12,500 S.F.
Hardware 10,000 S.F.
General Retail 32,500. S.F.
Total Building Area: 90,000 S.F.
HARD COSTS:
Building Construction $4,000,000.00
Owner General Conditions 100,000.00
Tenant.Allowances:
Food Store @ $10.00 S.F. 350,000.00
Drug & Hardware @ $5.00' S.F. 112,000.00
Sub Total Hard Costs: $4,562,000.00
Contingency (10 %) 4560000.00
Total Hard Costs: $5,018,000.00
SOFT COSTS:
A/E Fees
120,000.00
Project Coordination & Administration
1800000.00
Leasing
150,000.00,
Legal
60,000.00
Developer Overhead
120,000.00
Construction Interest
400,000.00
Placement Fees
100,000.00
Total Soft Costs
$1,130,000.00
Total Project Costs
$6,148,000.00
Costs to be determined in addition to those indicated
above are as follows:
1. Cost of extraordinary excavation and backfill
primarily at southwest edge of site.
2. Removal of underground gasoline storage tanks
at northwest corner, and cleanup (if any) con -
taminates.
10D
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Community Development Department
HousiNG Arm REDEVELOPMEr r AuTHORrrY
City of Fridley
DATE: February 7, 1992
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Joint Meeting with the City Council on March
12, 1992
We have polled the City Council and it appears we have a majority
available for a joint meeting with the HRA at the regular meeting
on Thursday, March 12, 1992. Councilwoman Nancy Jorgenson will
be arriving late at 9:00 p.m., however, we can finalize the TIF
policy discussion between 7:30 and 9:00 p.m.
The other issue for the joint meeting will be to review the process
for a Housing Plan and also to discuss general reaction to the
Maxfield study and discussion regarding goals and priorities. At
the writing of this memorandum, I am not aware of any other items
that need action for March 12, 1992.
BD:ch
M -92 -91
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