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HRA 10/08/1992 - 6375HOUSING AND REDEVELOPMENT AUTHORITY THURSDAY, OCTOBER 8, 1992 7:30 P.M. WILLIAM BURNS EXECUTIVE DIRECTOR OF HRA CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, OCTOBER 8, 1992, 7:30 P.M. ------------------------------------------------ ------------------------------------------------ Location: Council Chambers Fridley Municipal Center 6431 University Avenue N.E. CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: September 10, 1992 ACTION ITEMS• CONSIDER REQUEST BY DON FITCH FOR NOVEMBER, DECEMBER, AND JANUARY RENT . . . . . . . . . . 1.1 - 1.13 CONSIDER APPROVAL OF AGREEMENTS TO RETURN TAX INCREMENT TO SCHOOL DISTRICTS . . . . . . . . 2.1 - 2.35 CONSIDER RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT TO ACQUIRE EXCLUSIVE DEVELOP- MENT RIGHTS ON LAKE POINTE PROPERTY. . . . . . . . . . . 3.1 - 3.4 CLAIMS AND EXPENSES . . . . . . . . . . . . . . . . . . 4.1 - 4.3 INFORMATION ITEMS: STATUS REPORT ON MISSISSIPPI STREET IMPROVEMENT PROJECT . . . . . . . . . . . . . . . 5.1 - 5.5 RICE PLAZA UPDATE . . . . . . . . . . . . . . . . . . . . 6.1 OTHER BUSINESS ADJOURNMENT CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, SEPTEMBER 10, 1992 CALL TO ORDER: Vice - Chairperson Schnabel called the September 10, 1992, Housing & Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL: Members Present: Virginia Schnabel, Duane Prairie, John Meyer Members Absent: Larry Commers, Jim McFarland Others Present: William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Rick Pribyl, Finance Director Paul Hansen, Accountant Jim Casserly, Consultant Bob and Mike Schroer, Bob's Produce Ranch Dave Newman, Nedegaard Construction APPROVAL OF JULY 9, 1992 HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the July 9, 1992, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. CONSIDER APPROVAL OF RESOLUTION TO EXECUTE DEVELOPMENT AGREEMENT WITH SHEET METAL CONNECTORS: Ms. Dacy stated that at the July meeting, the HRA approved in concept a $200,000 loan for Sheet Metal Connectors to construct a 100,000 sq. ft. manufacturing building. The site is located on the west side of Main Street just north of I -694. Ms. Dacy stated the HRA has received a copy of the development agreement with Sheet Metal Connectors. The developer is required to construct a 100,000 sq. ft. building, and a building permit will be issued by the end of the week. After completion of the building and after the City issues a certificate of occupancy, the HRA will issue a check in the amount of $200,000. This action is consistent with the concept approval given by the HRA at the July meeting. HOUSING & REDEVELOPMENT AUTHORITY MTG.. SEPT. 10. 1992 PAGE 2 Ms. Dacy stated staff is recommending that the HRA approve the resolution authorizing the Executive Director and HRA Chairperson to execute the development agreement with Sheet Metal Connectors. MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve Resolution No. HRA 4 -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 MSCJ, Inc. ". UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. CONSIDER APPROVAL OF RESOLUTION TO EXECUTE DEVELOPMENT AGREEMENT WITH BOB'S PRODUCE: Ms. Dacy stated Bob and Mike Schroer have proposed a redevelopment plan which would add 9,000 sq. ft. onto their existing building. The other part of the plan is to remove the former Malmborg part of the building, and Lyndale Garden Center will construct a 15,000 sq. ft. building. The Schroers and Lyndale Garden Center have been to Council a number of times and have received several land use permits. She stated Jim Casserly will review the development contract. Mr. Casserly stated the development contract is almost identical to the one for McGlynn Bakeries and Cub Foods. This particular contract is a pay -as- you -go type of program. The developer is not getting any money up front, but only getting money over time. The developer has to do a number of qualified improvements, and all these improvements relate only to soils and site preparation. There is no land writedown. The beginning balance of the revenue note is $156,618, and there is some interest that accrues. The HRA is agreeing to provide $156,618. Out of that $156,618, the HRA is actually paying about $261,000 because they are paying interest, too. Mr. Dave Newman stated he has reviewed the development agreement with the Schroers and overall they are very comfortable with it. As they are all aware, they are in the process of conveying a portion of the site to Lyndale Garden Center. By every indication, Lyndale Garden Center will develop the site. However, if for any reason beyond anyone's control, Lyndale Garden Center does not develop the site, the Schroers, under this development agreement, would be in default and the City wouldn't have the $170,000 in improvements. He is suggesting that the development agreement be modified to provide a separate valuation for the Schroer property and a separate valuation for Lyndale Garden Center. The other issue is that if the Lyndale Garden Center site isn't remodeled, there is not going to be any increment from that site. There would be less pay -as- you -go per year, and the Schroers would not get the HOUSING & REDEVELOPMENT AUTHORITY MTG. , SEPT. 10, 1992 PAGE 3 full amount on the note, because the assumption is that they wouldn't have the minimum improvements constructed. Ms. Schnabel asked if the amount of money agreed upon is predicated on the total development being done. Mr. Casserly stated that is correct. Mr. Newman stated the qualifying cost is the site work and the soil preparation, and the greater amount of that is allocated to the Schroer property. Mr. Casserly stated Mr. Newman has described the problem well, but it is even a little more onerous. The redeveloper payment that goes back to the City also assumes that the Lyndale Garden Center project is going forward. The way the agreement is set up, if Lyndale Garden Center doesn't go, not only would the Schroers not receive the amount, there wouldn't be the increment to pay them the note, and they have also committed to pay $2,000 per year which isn't the City's loss at all. Mr. Casserly stated the agreement as drafted gave everyone two years, August 1992 to August 1994, to complete the basic improvements, and it was all based on the overall development taking place. If the Lyndale Garden Center project doesn't go, the Schroers will be penalized several ways. Mr. Newman suggested that the development agreement be modified to provide some type of staging. In other words, if the Schroers complete "x" amount of improvements, they receive "x" amount of assistance. So, an alternative since the HRA receives the increment generated from the project, they need to reduce the valuation for minimum improvements. That way, if the Schroers just complete their building, they won't be in default because they have only completed the minimum improvements, but they won't receive the full amount of payment. Another problem is timing. The Schroers are ready to construct their building this fall, but Lyndale Garden Center's construction is probably a year away. Mr. Bob Schroer stated he is comfortable that Lyndale Garden Center will go ahead with their project, but it is too bad that they can't do the whole development together. Mr. Newman stated he would be comfortable working out this problem with staff with concept approval from the HRA. Mr. Casserly stated he believed it is really a policy question. The redevelopers would like to have a two -stage project. The way the development agreement is drafted now is that the Schroers will receive no assistance until both phases are completed. They are saying that they can guarantee their own phase; but they cannot guarantee the second phase. If the HRA agrees to put this HOUSING & REDEVELOPMENT AUTHORITY MTG., SEPT. 10, 1992 PAGE 4 agreement into two phases, then the Schroers can get the benefit for the first phase of the development; and if Lyndale Garden Center goes ahead, then the Schroers would get some additional benefit. Mr. Casserly stated the HRA has absolutely no risk in this project. The real issue for the HRA is whether or not it wants to provide assistance if it is not getting what it originally anticipated. Mr. Meyer stated that if Lyndale Garden Center decides not to proceed with the project and decides to sell the property in two years, what happens to the agreement and to the improvements? Mr. Casserly stated he can define the minimum improvements and a general approximate valuation. Mr. Casserly stated that, with HRA approval, he will work with staff and Mr. Newman to put together an agreement to reflect the two phase approach. Ms. Schnabel stated that she is willing to let Mr. Newman and Mr. Casserly negotiate a modification to the development agreement as long as staff is involved. Mr. Burns stated staff will be involved. Mr. Meyer stated he has no problem with the two phase approach. As long as the Schroers know what they are facing, then he is comfortable with Mr. Casserly, Mr. Newman, and staff working out the specifics. Mr. Prairie stated he is also willing to let Mr. Casserly, Mr. Newman, and staff work out an acceptable agreement. MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve Resolution No. HRA 5 -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 East Ranch Estates ", and to direct staff to work with Mr. Casserly and Mr. Newman to make the appropriate modifications to the development agreement to reflect a two phase development. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. CONSIDER APPROVAL OF RECOMMENDED HOUSING PROGRAMS: This item was moved to the end of the agenda. 4. CLAIMS AND EXPENSES: a. Check Register (2234 -2247) HOUSING & REDEVELOPMENT AUTHORITY MTG., SEPT 10, 1992 PAGE 5 MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve check registers dated August 6 and September 10, 1992, as presented. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. REVISED PARKING LEASE BETWEEN HRA AND COLUMBIA PARK PROPERTIES• Ms. Dacy stated that Jim Hoeft wanted the HRA to know that he and the attorney for Columbia Park Properties are still working on a revised parking lease. There have been a number of leases and documents pertaining to this property, so the intent is to combine everything into one document. When the document is completed, it will be signed by the Chairperson and Executive director. 6. RICE PLAZA UPDATE: Ms. Dacy stated that when staff and the HRA were reviewing the 1992 budget, they looked at Rice Plaza and the income versus the expenditures. At that time, there were only three vacant spaces out of eight rental spaces. At the end of 1991, balance of revenues minus expenditures equalled an excess of about $47,000. Ms. Dacy stated that last year the HRA discussed three options: 1. Existing status, with tenant improvements (about $15,000) 2. Demolishing the building in March 1992 3. Gradual phase -out Ms. Dacy stated the option chosen at that time was option #3. About $2,500 was allocated in the budget for a trash enclosure and sign improvements. Ms. Dacy stated that a number of tenants have now left the building. The most recent tenant, Rapit Printing, will be vacating effective October 1, 1992, and will be moving to the old Zantigo building on University Avenue. Ms. Dacy stated that five out of eight rental spaces are now vacant. One of the remaining three tenants, Hong Kong Kitchen, is on a lease until October 1993. The other two tenants, Cinnamon Skin Tan and Bargains, Bargains are on a month -to -month basis. Ms. Dacy stated that as compared to the 1991 balance of revenues minus expenditures of $47,000, projecting the revenues out to the end of 1992 minus the expenditures, they will have a positive balance of about $9,600. However, with only three spaces rented, HOUSING & REDEVELOPMENT AUTHORITY MTG.. SEPT. 10. 1992 PAGE 6 by the end of 1993, the revenues minus expenditures will be a negative $16,900. Ms. Dacy outlined the costs of comparing the three options (option #1 - Current tenants with improvement; option #2 - Demolish 1993; option #3 - Gradual phase -out. Based on Mr. Kordiak's opinion that he cannot re -lease any space without improving the appearance of the building and the HRA's discussion last year, option #1 really isn't an option. That leaves options #2 and #3. If the HRA decides to demolish the building, they would probably have to break Hong Kong Kitchen's lease and have to pay relocation expenses. Demolishing the building will cost about $25,000 plus the normal operating expenses plus taxes, so it will cost about $100,000 to demolish the building. She stated that with gradual phase -out option, while they don't have the demolition expense, they begin to lose money because of lack of tenants. Ms. Dacy stated staff is recommending that the HRA not take any action on the building until the end of 1992 and see if any of the tenants can be relocated in the Fridley Town Square development. More information on that development should be forthcoming in the next one to two months. If the tenants do not relocate to Fridley Town Square, staff recommends the HRA strongly consider demolishing the building in 1993. A potential time would be to do it in con- junction with the Mississippi Street improvement project by Anoka County next spring. Mr. Burns suggested the HRA wait to see what happens. If Hong Kong Kitchen does not break its lease, them maybe the HRA should wait to demolish the building until October 1993 when the Hong Kong Kitchen lease expires. That way the HRA would not have to pay relocation expenses. Ms. Schnabel stated staff's analysis appears to be very sound. She would agree with Mr. Burns, that the HRA wait on any decisions to see what happens with the Fridley Town Square development and the current tenants. Mr. Meyer and Mr. Prairie agreed. 7. REQUEST BY TIM WERNER REGARDING LAKE POINTE SITE: Ms. Dacy stated Mr. Werner is running against Alice Johnson for State Representative. Because Mr. Werner believes the metro area should better pursue bus service, he has inquired as to whether or not the HRA would be willing to establish a park- and -ride site at the immediate intersection of Highway 65 and West Moore Lake Drive (where the bank, hotel, and restaurant buildings are proposed in the original Lake Pointe plan). Mr. Werner has been calling her weekly regarding this issue. She stated she has told Mr. Werner that the HRA is looking at a lot of options for the Lake Pointe site. HOUSING & REDEVELOPMENT AUTHORITY MTG., SEPT. 10, 1992 PAGE 7 Ms. Dacy stated this is an informational item only. However, if the HRA members have any comments, she would be happy to convey those comments to Mr. Werner. Mr. Burns stated that it is hard to make a promise for a park -and- ride site for a site that the HRA does not currently control. Secondly, if they look at their future strategically, it seems like the best choice would be to develop some good quality office space located on the large portion of the site and recover some of the incentive they have used to get the good quality office space by selling off the retail site (7.8 acres) where Mr. Werner has proposed the park- and -ride site. It becomes a policy issue. Which is more valuable: a potential park- and -ride site or potential revenue for that 7.8 acres? 8. CONSIDER REQUEST FOR TEMPORARY SIGNAGE FOR SOUTHWEST OUADRANT: Ms. Dacy stated that on August 31, 1992, the Council requested that the signage directing traffic to businesses in the southwest quadrant during the reconstruction of Mississippi Street be installed this fall and remain until the completion of the street reconstruction. The City, not the HRA, will be responsible for the installation and the cost of the signage. 9. FRIDLEY TOWN SQUARE UPDATE: Ms. Dacy stated that she spoke to Lowell Wagner (in partnership with Don Fitch of the Dairy queen), the other interested developer that morning. According to Mr. Wagner, the owner of the property, Theisen Partnership (or Norma Swanson) essentially has two similar offers, one from Scott Ericson and one from Lowell Wagner. The offers say that either party will purchase the property within a certain period of time and construct the development approved by the Council in 1990. 10. LAKE POINTE NEGOTIATIONS: Mr. Burns stated that during July and August, substantial progress was made with Woodbridge Corporation toward the resolution of Lake Pointe related issues. He stated that, assuming the City is going to acquire the property, he would like to approach the County and request that the penalties and interest on the back taxes be waived. He would ask the HRA's concurrence to allow him to discuss this with the County Auditor and Jim Kordiak, County Commissioner, as this is fairly urgent. The amount of money at stake is approximately $150,000. The HRA members concurred with this action. HOUSING & REDEVELOPMENT AUTHORITY MTG., SEPT. 10, 1992 PAGE 8 Mr. Casserly stated that regarding the negotiations, he hopes to have all the agreements that need to be signed for the HRA by the October meeting. 11. CONSIDER APPROVAL OF RECOMMENDED HOUSING PROGRAMS: Ms. Dacy stated she will divide her presentation into four areas: 1. Describe the issue. 2. Describe housing problems and identify them. 3. Go through recommendations identified in her September 3, 1992, memo. 4. Discuss future items and direction from the HRA. Ms. Dacy stated that in April, the HRA had a joint meeting with the Council, and they identified some of the values they had about single family housing and multiple family housing, and whether they should approach it on a community basis or a neighborhood basis. Staff used that guidance and the results from the Maxfield study and formed an 11 member interdepartmental staff team to develop recommendations for housing programs. Ms. Dacy stated the following key areas became the basis for their proposed solutions: (1) structural condition of housing stock (2) new developments (3) cultural diversity (4) neighborhood vitality (5) ongoing maintenance Ms. Dacy stated that regarding ongoing maintenance, staff interviewed a number of other communities, and the first thing they recommended was an aggressive inspection program. Ms. Dacy stated staff did an extensive windshield survey, beyond the Maxfield survey, and took count of the amount of abandoned homes, homes that needed rehab, etc., and did that on a neighborhood -by- neighborhood basis. The conclusion was that there isn't any one neighborhood that is really bad, but there are pockets in certain neighborhoods that really need some attention. Ms. Dacy showed slides of existing housing in Fridley which need rehabiliation and before and after pictures of a current rehab project. Ms. Dacy stated there are two sets of recommended solutions- -five primary strategies and several secondary strategies. The five primary strategies as outlined in her memo are: HOUSING & REDEVELOPMENT AUTHORITY MTG., SEPT 10, 1992 PAGE 9 1. Develop an "aggressive inspection program" and, in conjunction, research potential ordinance amendments. 2. Scattered site acquisition and abandoned home programs 3. Actively pursue MHFA programs. 4. Institute a "Fridley Rehabilitation Loan Program ". 5. Complete a Neighborhood Land Use Planning process. Ms. Dacy stated that if they did everything listed in the five programs, it would cost approximately $500,000 per year. Based on Council direction, they are focusing more on a single family rehab program, rental housing inspections and analyzing how that can be approved, and, third, really taking a look at and starting the scattered site acquisition. The missing element in this analysis for the HRA is how the $500,000 fits into its program in terms of budget now that they are approaching a conclusion on the Lake Pointe site. Staff will come back with a better analysis of the budget. Ms. Dacy stated that there are a number of secondary strategies to address. These and other important factors are also documented in her memo. Ms. Dacy stated that a list of issues which the City Council and HRA will need to decide in the future as they begin to implement the recommended programs are: 1. Bonds versus banks 2. Big Brother versus Laissez Faire 3. In -house versus contracting out (house) 4. Condemnation versus cooperative acquisitions 5. How tough should we be with prosecution? 6. How much money should we spend for these programs and where should they come from? 7. Sources of funding Mr. Meyer stated the City should define specifically in the Code what constitutes rental housing, both multiple and single family, code violations, and then worry about the inspectors and how the inspectors are going to enforce the Code. This is a terrible power a municipality takes on against its citizens, and they need to be extremely careful to create the rules which the inspectors will HOUSING & REDEVELOPMENT AUTHORITY MTG., SEPT. 10, 1992 PAGE 10 have the power to enforce. They could be heading into something very bad and very disagreeable for both the City Council and the HRA, because there could be some mass reactions from the citizens to this program, unless the program is very carefully thought out and codified and then inspectors hired. Ms. Dacy stated that the City has a current ordinance for rental inspections that is good; but, because the staff does not have the manpower to enforce the ordinance the way it should be, there are a majority of units that are not being inspected for long periods of time. Therefore, a lot of the rental units are going downhill. Ms. Schnabel stated she believed the key is that the City's housing stock, in total, is aging, and the rental units are no exception. If they can try to keep those at least up to date so the health, safety, and welfare of the tenants is protected, that is a key element in an inspection program and it should be one of the HRA's goals of an inspection program. However, she can see that they cannot keep up with the amount of work there is to do with the current staff and they will probably have to hire more staff. Ms. Schnabel stated that, in addition to rental housing, there is single family housing stock which, in some cases, is also deteriorating. In those instances, the intent, as she understood it in the meeting with the City Council, was that they should start to address their aging housing stock as well as multiple family and start to look at some programs, not only monetary programs but a maintenance code for the residents, to improve that housing. Mr. Burns stated that if the City requires the potential loan applicant to have a housing maintenance code inspection prior to eligibility for the loan, those items that are identified on an inspection have to be done whether the loan is approved or not. So, anyone who subjects himself /herself to that inspection takes a risk and it could cut down on the number of potential applicants for the loan. Ideally, while they might want to enact a housing maintenance code, there might be some very practical reasons to not want to go that far. Ms. Dacy stated another option is to go a step further to a point - of -sale housing inspection. Mr. Meyer stated he has a grave concern for creating a big brother monster... enforcing the inspections on multi -unit renters but going easy on the single home renters. That is another way of giving partial law enforcement. There are going to be some very heavy financial burdens on some people that other people are going to escape. It is going to be bad political PR, because the more the City enforces it, the more people are going to be hurt. Ms. Dacy stated she met with Larry Commers, Chairperson, and his comment on the rental inspections was that he understands the need, HOUSING & REDEVELOPMENT AUTHORITY MTG. , SEPT. 10 1992 PAGE 11 but wants staff to try to find some kind of program so that if the inspections do turn up specific items that are going to cost a lot of money, there is something that can be made available to the multi -unit owner. Mr. Meyer stated he doesn't object to the principle; he is concerned about the method. Ms. Schnabel stated Mr. Commer's point is well taken that if there are any programs available for rental housing assistance, then they should be looking at those. She believed their original intent was strictly to keep the neighborhoods viable. She is concerned about Fridley's overall appearance and overall viability. Mr. Meyer stated maybe he is focusing too much on how individual inspectors can be arbitrary and capricious in their judgments, but he has seen that in other cities. He just did not want to see the City get into the situation where they create a big brother environment in terms of housing. As Ms. Dacy pointed out, there are many rules and laws already on the books, and maybe they should be re- examining these rules and laws. Mr. Meyer stated he liked the recommended strategy regarding the scattered site acquisition and abandoned home program. Mr. Burns stated that, hopefully, before the end of the year, staff will have developed some recommendations for scattered site housing. Mr. Burns stated that the HRA has heard a discussion of the five major elements of the program. Of these, the three major elements are a housing rehab program, a scattered site housing program, and the beefing up our existing rental inspections. Staff is interested in whether the HRA believes staff is on the right track. Ms. Schnabel stated she believed Mr. Meyer's point about having a maintenance code for single family in effect is important. Otherwise, she thought everything else looked good. ADJOURNMENT: MOTION by Mr. Meyer, seconded by Mr. Prairie, to adjourn the meeting. Upon a voice vote, all voting aye, Vice - Chairperson Schnabel declared the motion carried and the September 10, 1992, Housing and Redevelopment Authority meeting adjourned at 10:20 p.m. Re�pectfully sub itted, i y Saba Recording Secretary 1.1 r � Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: October 1, 1992 TO: William Burns, Executive Director of HRA j FROM: Barbara Dacy, Community Development Director SUBJECT: Request for Rent Reduction by Don Fitch of the Dairy Queen Don Fitch of the Dairy Queen has requested a rent reduction for the months of November, December, and January from $500 per month to $100 per month. The lease agreement required Fitch to be open a minimum of eight months through the calendar year. During operation, the required rent payment is $500. No rent is required when the Dairy Queen is not open. Fitch explains that he has hired additional staff in the last year hoping to have moved to a new location by now. As opposed to last year, he intends to remain open in November, December, and January to continue full time employment for the additional employees. He would like the rent reduction in order to save on the - expenses during the winter months. Recommendation Staff does not object to the HRA granting a rent reduction for the specified months of November, December, and January. Norma Swanson, owner of the 10,000 Auto Parts property, has agreed to sell the property to Lowell Wagner and Dairy Queen, who will construct a 28,000 sq. ft. center as originally anticipated. The Dairy Queen has been open in excess of the minimum amount required by the lease. BD:ls M -92 -613 FRIDLEY DAIRY QUEEN 280 Mississippi St. Fridley, MN 55432 571 -5080 September 30, 1992 Dairy Queen 1.2 LEXINGTON DAIRY QUEEN 4131 Woodland Rd. Lexington, MN 55014 784-4663 Ms. Barbara Dacy 6431 University Ave. N. E. Fridley, MN 55432 Re: Rent to be paid during the months of November, December and January. Dear Barbara: Per our discussions I am writing this letter to you to formally request that consideration be given to me and the Dairy Queen for a reduced rent during the months of November and December 1992 and January of 1993. As you may be aware the Dairy Queen is usually not open during this time period, however this year we are considering being open. I have already been open as long as the lease calls for me to pay rent for 1992 and would be closing except during the year I hired some full time employees with the hope that I would presently be moving into a new facility and would not have the problem I am facing. Since I am still optimistic that I will have a new location by next fall I would like to maintain a job for these full time employees as long as I can this year. Two of the full time people are residents in Fridley while others live close by. It is my hope that I could negotiate a rent of One hundred dollars per month for the three months in question to help reduce the loss I will incur during these three months by staying open. If I do have to pay the normal rent of five hundred dollars per month I will be forced to close for at least two months this winter. This would leave some special people unemployed at a difficult time of year. Thankyou for giving this your consideration. If you have any further questions, please feel free to contact me at the Dairy Queen 571 -5080 or at home 780 -4129. Sincerely, Don Fitch Fridley Dairy Queen 1.3 AGREEMENT TO LEASE THIS AGREEMENT, made this 25th day of July, 1991, by and between the Fridley Housing & Redevelopment Authority (hereinafter designated as "Lessor ") and Donald Fitch (hereinafter designated as "Lessee "). AITNESSETH: That the Lessor, for and in consideration of the terms, covenants, rents and conditions herein mentioned, to be paid and performed by Lessee, does hereby demise and let unto said Lessee, and the said Lessee does hereby hire and take from the Lessor, the following described premises situated in the City of Fridley, County of Anoka, State of Minnesota, to -wit: The East 75.1 feet of the North 158 feet, subject to Mississippi Street easement, of Lot No. 3, Block 1, Sylvan Hills Plat 5, Anoka County, Minnesota, including the northerly 30 feet of the westerly 75.1 feet of that portion of vacated 64 -1/2 Avenue lying immediately South of said property. TO HAVE AND TO HOLD, the same just as they are, without liability on the part of the Lessor to make alterations, improvements or repairs of any kind in and about the demised premises, except as and if otherwise set forth herein, from the 25th day of July, 1991 through and until the 30th day of November, 1992 for the following purposes, and for no other purposes, to -wit: 1. Operation of the existing Dairy Queen business and seasonal sales of Christmas trees. 2. Lessee agrees to pay Lessor as and for rent for the above mentioned premises, in monthly installments of $500.00 1.4 Dollars each during operating months, in advance on the first day of each and every month during the full term of this Lease at the office of the Lessor, or at such other place as Lessor may in writing designate. For those months that Lessee is not in operation, Lessee shall pay no rent other than as set forth hereinbelow. If Lessee is in operation during any portion of any month, Lessee shall pay a per diem prorated amount of said $500.00 in addition to the entire costs to Lessee as set forth below. Lessee represents that it will be in operation a minimum of eight (8) months per calendar year. In addition to the rent specified in the preceding Paragraph (the "base annual rental "), Lessee agrees to provide for and pay the cost of maintaining the parking areas, grounds and sidewalks serving the leased premises. Such costs shall include lighting, snow removal, line painting and replacement of paving, curbs and sidewalks, if necessary. Such costs shall not include repaving of the entire parking area, or replacement of paving, curbs and sidewalks as part of the Mississippi Street improvement project. The cost of operation and maintenance shall include property taxes but not special assessments. Further, the Lessee shall promptly pay the costs of all utilities, including, but not limited to electricity, telephone, sewer, water, refuse removal and natural gas. 3. Lessee agrees that it will not sublet the demised premises or any part thereof and will not assign this Lease or any interest therein. 4. Lessee shall provide or pay for all repairs and maintenance of the premises that is not covered by existing 1.5 insurance or is an unreimbursed expense under said coverage. Said repairs and maintenance shall include, but not be limited to, glass breakage, furnace, air - conditioning, plumbing, electrical systems and structural repairs. Lessee shall not be responsible for complete replacement of the furnace or, air - conditioning systems. 5. Lessee agrees to indemnify and hold the Lessor harmless for any liability arising out of the Lessee's use of the premises. For this purpose the Lessee shall at his sole expense procure and maintain comprehensive public liability insurance for the demised premises during the term hereof in the minimum amount of Three Hundred Thousand- Five Hundred Thousand Dollars ($300,000.00 - $500,000.00) bodily injury and One Hundred Thousand Dollars ($100,000.00) property damage. Lessee shall provide Lessor with evidence of such insurance prior to occupancy. Lessee shall procure /maintain insurance covering all improvements upon the demised premises, as well as all fixtures and equipment within the demised premised. Lessor shall reimburse Lessee for one -half (1/2) of the premium cost for said insurance on the improvements, fixtures and equipment. 6. Lessee to obtain workers compensation insurance. Lessee shall maintain and keep in force all-employees compensation insurance required under the laws of the State of Minnesota and such other insurance as may be necessary to protect Lessor against any other liability to person or property arising hereunder by operations of law, whether such law is now in force or is adopted subsequent to the execution hereof. 1.6 7. Lessee to furnish certificate of insurance. Lessee shall furnish -to- Lessor a certificate of insurance showing that his liability insurance policies, as well as the policies covering the improvements, fixtures and equipment are in full force and effect and naming Lessor as an insured thereon. The policy shall further provide that Lessor shall be given a minimum of thirty (30) days notice by the insurance company prior to cancellation, termination or change of such insurance. Such ,policies or duly executed certificates of insurance shall be delivered to Lessor prior to the commencement of Lessee's occupancy hereunder and renewals thereof shall be delivered to Lessor at least thirty (30) days prior to expiration of the respective policy terms. 8. As a consequence of the improvement project proposed for the intersection of University Avenue Northeast and Mississippi Street Northeast, certain alterations may be necessary to said property in order for Lessee to continue to operate its drive -thru business. Said alterations may include a redesign of the drive -thru lane and Lessor agrees to be responsible for the pavement costs related to said redesign. Lessee shall be responsible for the relocation of the microphone menu sign, installation of directional signage, pavement striping, and relocation of the fence and accessory buildings at the rear of the property. Notwithstanding anything to the contrary above; if the improvement project proposed for the intersection of University Avenue Northeast and Mississippi Street Northeast does not commence prior to July 1, 1992, the 1.7 Lessee releases the Lessor of any obligation to install a new driveway and any new pavement as referenced above. This does not preclude Lessee from making alterations at its own expense to modify said drive -thru. 9. Lessee covenants and agrees that he will make -no structural change or major alteration without the Lessor's consent, which consent shall not be unreasonably withheld, provided that the proposed improvements are consistent with the use of the property, do not significantly reduce the value of the property and do not violate any local, State or Federal laws, and without first furnishing the Lessor with five (5) days advance written notice outlining the proposed changes or alterations. Upon the City consenting to the alterations, then the City will issue all necessary permits without unreasonable delay. The Lessee further covenants that it will promptly pay for any alterations, repairs or maintenance made to the demised property so that no mechanic's liens will be filed against the property. In the event a mechanic's lien is filed, the Lessee shall have twenty (20) days to pay or in the alternative to post 1 -1/2 times the lien amount with the district court in order to contest it. Failure to do either of the above mentioned lien corrections shall be deemed as a default under this Lease._ In any event, the Lessee shall indemnify and hold harmless the Lessor for any and all costs or removing said lien. 10. The Lessee agrees that upon termination of this Lease, all improvements to the property, together with all fixtures, shall become the property of the Lessor, with the exception that Lessee shall be able to remove the existing pylon sign, deck, fencing, small detached storage shed located at the south end of the property, walk -in freezer located at the rear.exterior of the building, interior cupboards located in the rear of the building and interior equipment used_for the operation of the Dairy Queen. 11. Lessor shall at all times have the right to enter upon said premises to inspect its condition and at its election to make reasonable and necessary repairs thereon for the protection and preservation thereof but nothing herein shall be construed to require the Lessor to make such repairs except as may be herein provided for and the Lessor shall not be liable to the Lessee for the failure to delay in making such repairs or for damage or injury to persons or property caused in or by the making of such repairs or the doing of such work. 12. Lessee agrees to pay for all special requirements for utilities such as gas, steam, water and electricity and for all other alterations, modifications or other services to the demised premises. charges for any such utilities or services shall be paid by Lessee and, in the event such charges are not paid when due, the same shall constitute a default hereunder on the part of the Lessee. Lessee shall not be responsible for costs associated with a change in the utility services identified above as a result of the Mississippi Street improvement project., 13. The premises shall not be used for lodging or sleeping or for any immoral or illegal purposes. 14. The parties hereto mutually agree that if the demised premises-are partially or totally destroyed by fire or other 1.9 hazards-, then Lessor may, but is not obligated to, repair and restore the demised premises as soon as is reasonably practicable to substantially the same condition in which the demised premises were before such damage. The Lessee may repair the damage as allowed under Paragraph 8 at his own expense. In the event the demised premises are completely destroyed or so badly damaged as not to be useable by the Lessee for the purposes herein provided, then this Lease shall be terminable by either party hereto by serving written notice upon the other,; and provided, further, that in any event if repairs have not been commenced within thirty (30) days from the date of said damage and thereafter completed within a reasonable time, in no case to exceed three (3) months, this Lease may be immediately terminated by the Lessee by serving written notice upon the Lessor. 15. The Lessee acknowledges that he -is aware that Anoka County intends to widen Mississippi Street along the north boundary of the property and that-in the course of doing so the County intends to acquire a portion of the property. The Lessee acknowledges that he is waiving any and all claims to any compensation or monies that the Lessor may receive from the County as a result of this taking. Further, the Lessee agrees to waive any claim that this acquisition by the County constitutes a breach of this Lease. 16. THIS PARAGRAPH DESCRIBES THE CONDITIONS UNDER WHICH THE LESSOR MAY TERMINATE THIS LEASE EARLY. YOUR SHOULD READ THIS PARAGRAPH CAREFULLY. In addition to the provisions contained elsewhere in this Lease, the Lessor may terminate this Lease 1.10 prior to expiration date and without cause upon the Fridley Housing & Redevelopment Authority making the determination that it needs to terminate this leasehold interest as a result of development intended for this site or elsewhere in the southwest quadrant of Mississippi and University. This termination can only be effective upon the giving of ninety (90) days written notice by the Lessor to the Lessee. Lessee may terminate this Lease prior to expiration date and without cause upon the giving of thirty (30) days written notice by Lessee to the Lessor. 17. In the event that the Lessee shall continue to occupy the demised. premises after the expiration of the term of said Lease, such "holding over" shall be on a month to month basis. Either party may terminate said "holding over" by giving the proper notice, as required by Minnesota law, to terminate a month to month tenancy. 18. The Lessee hereby agrees to waive any right or benefits he may have as a Lessee under this specific Lease pursuant to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (40 U.S.C. 4601) and will provide Lessor with a signed waiver upon request. It is understood that the parties have entered into this Lease as an accommodation to each other. Upon the proper termination of this Lease, the Lessee will not be entitled to any compensation or damages for the termination of the Lessee's leasehold interest. 19. No sign shall be painted or affixed by the Lessee on any part of the outside of the demised premises without prior written 1.11 consent of the Lessor. In the event of a violation of this clause by the Lessee, Lessor may remove said sign without any liability and may charge the expense incurred by such removal to the Lessee. The Lessee is permitted to substitute a sign on the building which would be affixed in substantially the same location as any existing sign and shall be constructed of letters which are substantially similar to and which letters do not collectively or significantly exceed the size of any current sign. The Lessee is also permitted to maintain the free - standing pylon sign on the property in conformance with the City of Fridley's Sign Code. The Lessee is responsible for all costs and charges pertaining to its maintenance. 20. If the Lessee shall make default in any covenant or agreement to be performed by him and if after written notice from Lessor to Lessee such default shall continue for a period of five (5) days or if the leasehold interest of the Lessee shall be taken on execution or other process of law or if the Lessee shall petition. to be or be declared bankrupt or insolvent according to law, then, and in any of said cases, the Lessor may immediately or at any time thereafter without further notice or demand, enter into and upon said premises or any part thereof and take absolute possession of the same fully and absolutely without such re -entry working a forfeiture of the rents to be paid and the covenants to be performed by the Lessee for the full term of this Lease, and at Lessor's election, Lessor may either lease or sublet such premises or any part thereof on such terms and conditions and for such rents and for such time as the Lessor may reasonably elect 1.12 and after crediting the rent actually collected by the Lessor from such re- letting collect from the Lessee any balance remaining due on the rent reserved under this Lease, or Lessor may declare this Lease forfeited and may take full and absolute possession of said premises free from any subsequent rights of the Lessee. That in the event of default by the Lessee, the Lessee shall compensate the Lessor for all reasonable attorneys fees, expenses and costs incurred by the Lessor in either reaquiring possession of the property or for bringing an action for the recovery of unpaid rent. 21. Wherever in this Lease-it shall be required or permitted that notice or demand be given or served by either party to this Lease to or-on.the other,.such notice or demand shall be given or served and shall not be deemed to have been given or served unless in writing and forwarded by mail addressed as follows: To The Lessor: Barbara Dacy Community Development Director Fridley Housing & Redevelopment Authority 6431 University Ave. N.E. Fridley, MN 55432 To The Lessee: Donald Fitch 8360 Sunnyside Road Mounds View, MN 55112 Such addresses may be changed from time to time by either party by service of notice as-above provided. 22. Lessor agrees that through and until the 30th day of November, 1992, it will not release said premises to another 1.13 tenant whose business is primarily the sale of.soft -serve ice cream products. This representation shall survive any prior termination of this Lease, unless said termination is due to Lessee's default under any of the terms and conditions contained herein. 23. The Lessor and Lessee agree that all the provisions hereof are to be construed as covenants and agreements. IN WITNESS WHEREOF, the Lessor and Lessee have caused their respective names to be subscribed to this Lease on the date first above written. In the Presence Of: In the Presence Of: STATE OF MINNESOTA ) )SS. COUNTY OF ANOKA ) LESSOR: FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY LESSEE: BY: The foregoing instrument was acknowledged before me this day of ��Xc.I�r- , 1991. THIS INSTRUMENT WAS DRAFTED BY: BARNA, GUZY & STEFFEN, LTD. 400 Northtown Financial Center 200 Coon Rapids Boulevard Coon Rapids, MN 55433 (612) 780 -8500 2.1 J, TO: WILLIAM W. BURNS, CITY MANAGER`, ;T FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR PAUL S. HANSEN, ACCOUNTANT SUBJECT: SCHOOL DISTRICT AGREEMENTS AND RETURNS DATE: September 30, 1992 Attached you will find copies of the 1993 school district agreements that will be submitted to the HRA commission members at the October 8, 1992, meeting for their discussion and approval. These are one year agreements that are approved in the fall of each year. Also, attached are the projected 1993 school district returns. The estimated total return for 1993, before delinquents, is $338,913.17. This is a decrease of 10% from the 1992 estimated return, before delinquents, of $378,404.12. The below table breaks down the increase and decrease from 1992 to 1993 for each school district: School Estimated Estimated Percentage District 1992 1993 Increase /(Decrease) 11 $ 18,335.71 $ 17,685.71 (4 %) 13 $ 27,308.37 $ 26,564.71 (3 %) 14 $272,604.13 $242,046.07 (11 %) 16 $ 60,155.92 $ 52,616.68 (13 %) TOTAL $378,404.12 $338,913.17 (10 %) 2.2 AGREEMENT This Agreement is dated as of January 2, 1993, is by and between the City of Fridley, Minnesota, and Independent School District No. 11, and provides as follows: 1. Definitions. As used in this Agreement, the following terms have the following meanings, respectively: "City" means the City of Fridley, Minnesota. "HRA" means the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota. "Project" means Redevelopment Project No. 1 established and operated by the HRA pursuant to Minnesota Statutes, Sections 469.001 through 469.047. 111985 Revenue Bonds" means the HRA's $4,070,000 Tax Increment Revenue Bonds of 1985, dated May 1, 1985. "Limited Revenue Note" means the HRA's $5,603,755.80 Limited Revenue Capital Appreciation Tax Increment Note, dated December 20, 1985. "1985 G.O. Bonds" means the City's $11,550,000 Variable Rate Demand General Obligation Tax Increment Bonds, Series 1985, dated December 30, 1985. "1986 G.O. Bonds" means the City's $10,045,000 General Obligation Tax Increment Refunding Bonds, Series 1986, dated as of August 1, 1986. 111990 G.O. Bonds" means the City's $9,485,000 General Obligation Tax Increment Refunding Bonds of 1990, dated March 1, 1990. "Tax Increment Obligations" means the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, the 1986 G.O. Bonds, the 1990 G.O. Bonds, and any other contractual obligations of the HRA or the City which were entered into prior to the date of this 224195 2.3 Agreement and which commit the use of any tax increments from the TIF Districts for specified purposes, projects, or parties. "Tax Increment Act" means Minnesota Statutes, Sections 469.174 through 469.179. "TIF Districts" means Tax Increment Financing District Nos. 1 through 12 within the Project. The attached Exhibit A contains certification dates and other information on the TIF Districts. "School District" means Independent School District No. 11, the Anoka School District. "Subdivision" means Minnesota Statutes Second 1989 Supplement, Section 469.177, Subdivision 10, as amended by Laws of Minnesota 1990, Chapter 604, Article 7, Section 24 (a copy of which is attached hereto as Exhibit B). 2. Recitals. (a) In certain cases, the Subdivision either requires or allows by agreement certain tax increments attributable to school district referendum tax levies to be paid to school districts. (b) A portion of TIF District No. 3 is located within the boundaries of the School District. (c) None of the property within TIF District Nos. 1, 2, 4, 5, 6, 7, 8, 9, 10, 11 and 12 is located within the boundaries of the School District. (d) It is the purpose of this Agreement to provide for payment of certain tax increments to the School District pursuant to and in accordance with the provision of the Subdivision. (e) Nothing in this Agreement is intended to violate the covenants and agreements heretofore made respecting the application of 224195 2 2.4 tax increments from the TIF Districts pursuant to the Tax Increment Obligations. 3. Representations of the City. (a) The Tax Increment Obligations were issued to finance various activities of the HRA within the Project. (b) The 1985 Revenue Bonds are not general obligations of the City or the HRA. Tax increments from TIF District Nos. 1 through 5 are pledged to the payment of the 1985 Revenue Bonds, and there are no other sources of funds pledged to the payment thereof. The final scheduled principal maturity of the 1985 Revenue Bonds is February 1, 1999. (c) The Limited Revenue Note is not a general obligation of the City or the HRA and is payable solely from tax increments pledged for such purposes from TIF District No. 6. (d) The 1985 G.O. Bonds were payable from tax increments derived from TIF District Nos. 1 through 6, and the final scheduled principal maturity of those Bonds was February 1, 2000. However, on February 1, 1990, the City discharged the 1985 G.O. Bonds by paying all then outstanding principal thereof and interest thereon. (e) The 1986 G.O. Bonds are payable from tax increments derived from TIF District Nos. 1 through 6, and the final scheduled principal maturity of those Bonds is February 1, 2000. However, the City has advance refunded the 1986 G.O. Bonds via the issuance of the 1990 G.O. Bonds, and the City expects pursuant to said refunding that all of the principal of and interest on the 1986 G.O. Bonds will have been paid on or before February 1, 1994. (f) The 1990 G.O. Bonds are payable from tax increments derived from TIF District Nos. 1, 2, 3, and 6, and the final scheduled principal maturity of those Bonds is August 1, 2009. (g) Portions of the principal of the 1985 Revenue Bonds, the Limited Revenue Note, 224195 3 224195 2.5 the 1985 G.O. Bonds, and the 1986 G.O. Bonds, and the 1990 G.O. Bonds were outstanding on May 1, 1988, and /or are outstanding on the date of this Agreement. 4. Representations of the School District. (a) On October 5, 1982, the electorate of the School District approved a continuous 6.0 mill levy first effective for the 1982 payable 1983 property taxes. This levy is hereinafter referred to as the 111982 Levy ". (b) On October 6, 1987, the electorate of the School District approved a 6.0 mill continuous levy first effective for the 1987 payable 1988 property taxes. This levy is hereinafter referred to as the 111987 Levy ". (c) According to the Minnesota Department of Education, for purposes of the above - mentioned referendum levies the tax capacity rate equivalent of 6 mills is .06999697. 5. Payment of Tax Increments to School District. The City and the School District hereby agree that, except as otherwise provided pursuant to paragraph 6 of this Agreement, tax increments shall be paid to the School District by the HRA as and to the extent received by the HRA, with respect to the tax increments relating to the 1992 payable 1993 property taxes, as follows: TIF District No. 3. Pursuant to clause b(2) of the Subdivision, the tax increment from TIF District No. 3 which is attributable to the 1982 Levy and the 1987 Levy shall be paid to the School District. 6. Further Agreements. Nothing in this Agreement is intended or shall be applied in such a manner as to violate the obligations and covenants made by the City or the HRA in connection with the Tax Increment Obligations, and to the extent but only to the extent that the application of the terms of this Agreement would give rise to a violation of said obligations and covenants, including without limitation, the default in the timely and full payment of the Tax Increment Obligations, the applicable tax increments shall be applied instead in the manner, but only to the extent necessary, to avoid such default or other violation of said covenants or obligations. Nothing in this Agreement shall restrict the 4 City or the HRA in the exercise of the powers which they may have relating to the Project or the TIF Districts. In addition, the City and the School District agree that the provisions of paragraph 5 providing for payment of tax increment to the School District shall be limited to and shall apply only to such tax increment attributable to the 1992 payable 1993 real estate property taxes, and at the conclusion of said period, the City and the School District agree to review the circumstances and to attempt to negotiate in good faith such further agreement or agreements as may be permitted by law and which are acceptable to both the City and School District with respect to discretionary payments of such applicable tax increment to the School District. IN WITNESS WHEREOF, the City and the School District have caused this Agreement to be executed by their duly authorized representatives. CITY OF FRIDLEY, MINNESOTA Mayor City Manager INDEPENDENT SCHOOL DISTRICT NO. 11 School Board Chair Superintendent 224195 5 EXHIBIT A Schedule of Tax Increment Financing Districts Within Housing and Redevelopment Project No. 1 of the Fridley HRA 2.7 Independent 224195 Certification School TIF District Name Date District No. 1 Center City 5/11/79 14 2 Moore Lake 7/31/81 13/14 3 North Area 5/19/82 11/16 4 Johnson Printing/ Skywood Mall 1/20/84 13/14 5 Paschke 3/15/84 16 6 Lake Pointe 12/24/85 13 7 Winfield 10/22/86 16 8 Shorewood 10/24/86 14 9 Onan /Old Central 9/7/89 16 10 Northco Phase III 4/10/90 16 11 Osborne Crossings 1/31/92 16 12 McGlynn Bakeries 5/5/92 14/16 224195 PAKOJ �Xr3I�IT B Sec. 24. uinnescta Stat_tes Seccnd 15C9 S'_.:1E .Ent, sect:Cn 4L ?.177, _s a- .endeC to :eEd: S v J — 7 _C> SC -C..- C .__ _ ._v;D':..i 1 _'ti , (a 7tin CJ.s_C's C f this sL'_d :. :s_Cn c_:ly t0 ta _- c:e -.E't f :na -.c n distr :Cts a'd ":cfects fcr -..ich cErtlficat_cn vas :ec'_EstEd , terC:e icy 11 15ta, that are 1CcatEd 1:1 a sC`CC1 CistI_c`. in .:. C'1 she ':CtErs have ap :rC':ed new tax ca_acity ratEs Cr an i'Crease _.I tax ca_aclty rates after the tax incre -.Ent f_na -cing district was Certified. there are no c::tsta-di ^g bonds c:] aay 1, 15E3, t0 frC.-.i the district is 7Iedced, Cr if the refere'dL':.l is apprcved after Xay l,' 1588, and t`ere are no bC'd5 cL`tsta -ding at she ti -.e ',he is app:cvec, t.`.at iss -Ed =e_cre :{ay the ai.thcrlty 71--st an,-.,!ally ;ay to the s c h o c 1 C:str_ct as a::cu:i t c - ;ncre'en" ecL`a1 to t':e 1ncre -.e7.t that is attributable to the increase in '! e tax capacity rate L .der the referend=. 21 If clayse (1) Cces nCt aDD1y, L`Gc:] cDDrcval by a - :ajcrity vote of the Scverning body of the munici-pality and the sc : -ool 'card, the a•.:t`crity -. st pay to t e school district an z-.c --,nt of _-cr'e -.ent cc,-,al to the _r.cre -.ent that :s attri''�ta'le to the increase :a the tax capacity rate ..-,der t -..e LS)_ The a:T.oL its of these .r.cre -:eats may he expended and , -.St to treated ty the school d;< -tr :ct in the _ r..e 7.a ^ner as p ided for t`e recen,�es derived from the referend;::l levy _ ed y five '.cters. he of thissubdivisicn a LDI'J to -p o`Ects for cer,,l F:caticn v:as recpested 4efcre, 2.9 AGREEMENT This Agreement is dated as of January 2, 1993, is by and between the City of Fridley, Minnesota, and Independent School District No. 13, and provides as follows: 1. Definitions. As used in this Agreement, the following terms have the following meanings, respectively: "City" means the City of Fridley, Minnesota. "HRA" means the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota. " Project" means Redevelopment Project No. 1 established and operated by the HRA pursuant to Minnesota Statutes, Sections 469.001 through 469.047. 111985 Revenue Bonds" means the HRA's $4,070,000 Tax Increment Revenue Bonds of 1985, dated May 1, 1985. "Limited Revenue Note" means the HRA's $5,603,755.80 Limited Revenue Capital Appreciation Tax Increment Note, dated December 20, 1985. "1985 G.O. Bonds" means the City's $11,550,000 Variable Rate Demand General Obligation Tax Increment Bonds, Series 1985, dated December 30, 1985. "1986 G.O. Bonds" means the City's $10,045,000 General Obligation Tax Increment Refunding Bonds, Series 1986, dated as of August 1, 1986. 111990 G.O. Bonds" means the City's $9,485,000 General Obligation Tax Increment Refunding Bonds of 1990, dated March 1, 1990. "Tax Increment Obligations" means the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, the 1986 G.O. Bonds, the 224188 2.10 1990 G.O. Bonds, and any other contractual obligations of the HRA or the City which were entered into prior to the date of this Agreement and which commit the use of any tax increments from the TIF Districts for specified purposes, projects, or parties. "Tax Increment Act" means Minnesota Statutes, Sections 469.174 through 469.179. "TIF Districts" means Tax Increment Financing District Nos. 1 through 12 within the Project. The attached Exhibit A contains certification dates and other information on the TIF Districts. "School District" means Independent School District No. 13, the Columbia Heights School District. "Subdivision" means Minnesota Statutes Second 1989 Supplement, Section 469.177, Subdivision 10, as amended by Laws of Minnesota 1990, Chapter 604, Article 7, Section 24 (a copy of which is attached hereto as Exhibit B). 2. Recitals. (a) In certain cases, the Subdivision either requires or allows by agreement certain tax increments attributable to school district referendum tax levies to be paid to school districts. (b) TIF District No. 6 is located entirely within the boundaries of the School District, and a portion of TIF District Nos. 2 and 4 are located within the boundaries of the School District. (c) None of the property within TIF District Nos. 1, 3, 5, 7, 8, 9, 10, 11 and 12 is located within the boundaries of the School District. (d) It is the purpose of this Agreement to provide for payment of certain tax increments to the School District pursuant to 224188 2 2.11 and in accordance with the provision of the Subdivision. (e) Nothing in this Agreement is intended to violate the covenants and agreements heretofore made respecting the application of tax increments from the TIF Districts pursuant to the Tax Increment Obligations. 3. Representations of the City. (a) The Tax Increment Obligations were issued to finance various activities of the HRA within the Project. (b) The 1985 Revenue Bonds are not general obligations of the City or the HRA. Tax increments from TIF District Nos. 1 through 5 are pledged to the payment of the 1985 Revenue Bonds, and there are no other sources of funds pledged to the payment thereof. The final scheduled principal maturity of the 1985 Revenue Bonds is February 1, 1999. (c) The Limited Revenue Note is not a general obligation of the City or the HRA and is payable solely from tax increments pledged for such purposes from TIF District No. 6. (d) The 1985 G.O. Bonds were payable from tax increments derived from TIF District Nos. 1 through 6, and the final scheduled principal maturity of those Bonds was February 1, 2000. However, on February 1, 1990, the City discharged the 1985 G.O. Bonds by paying all then outstanding principal thereof and interest thereon. (e) The 1986 G.O. Bonds are payable from tax increments derived from TIF District Nos. 1 through 6, and the final scheduled principal maturity of those Bonds is February 1, 2000. However, the City has advance refunded the 1986 G.O. Bonds via the issuance of the 1990 G.O. Bonds, and the City expects pursuant to said refunding that all of the principal of 224188 3 2.12 and interest on the 1986 G.O. Bonds will have been paid on or before February 1, 1994. (f) The 1990 G.O. Bonds are payable from tax increments derived from TIF District Nos. 1, 2, 3, and 6, and the final scheduled principal maturity of those Bonds is August 1, 2009. (g) Portions of the principal of the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, and the 1986 G.O. Bonds, and the 1990 G.O. Bonds were outstanding on May 1, 1988, and /or are outstanding on the date of this Agreement. 4. Representations of the School District. (a) On October 5, 1981, the electorate of the School District approved a 5.0 mill continuous levy first effective for the 1981 payable 1982 property taxes. This levy is hereinafter referred to as the 111981 Levy ". (b) On September 230, 1986, the electorate of the School District approved a 7.0 mill continuous levy first effective for the 1986 payable 1987 property taxes. This levy is hereinafter referred to as the 111986 Levy". (c) According to the Minnesota Department of Education, for purposes of the above - mentioned referendum levies the tax capacity rate equivalents of 5 mills and 7 mills are .06162496 and .07875910, respectively. (d) On November 6, 1990, the electorate of the School District approved a .08 tax capacity rate levy authorized for 7 years and first effective for the 1990 payable 1991 property taxes. This levy is hereinafter referred to as the 111990 Levy". 5. Payment of Tax Increments to School District. The City and the School District hereby agree that, except as otherwise provided pursuant to paragraph 6 of this Agreement, tax increments shall be paid to the School District by the HRA 224188 4 2.13 as and to the extent received by the HRA, with respect to the tax increments relating to the 1992 payable 1993 property taxes, as follows: (a) TIF District No. 6. Since the 1981 Levy was approved before the date of certification of TIF District No. 61 the Subdivision does not apply to that Levy with respect to this . District, and no tax increments attributable to said Levy from this District are payable to the School District. Pursuant to clause b(2) of the Subdivision, the tax increment from TIF District No. 6 which is attributable to the 1986 Levy and the 1990 Levy shall be paid to the School District. (b) TIF District No. 4. Since the 1981 Levy was approved prior to the date of certification of TIF District No. 4, the Subdivision does not apply to that Levy with respect to this District. Pursuant to clause b(2) of the Subdivision, the tax increment from TIF District No. 4 which is attributable to the 1986 Levy and the 1990 Levy shall be paid to the School District. (c) TIF District No. 2. Pursuant to clause b(2) of the Subdivision, the tax increment from TIF District No. 2 which is attributable to the 1981 Levy, the 1986 Levy, and the 1990 Levy shall be paid to the School District. 6. Further Agreements. Nothing'in this Agreement is intended or shall be applied in such a manner as to violate the obligations and covenants made by the City or the HRA in connection with the Tax Increment Obligations, and to the extent but only to the extent that the application of the terms of this Agreement would give rise to a violation of said obligations and covenants, including without limitation, the default in the timely and full payment of the Tax Increment Obligations, the applicable tax increments shall be applied instead in the manner, but only to the extent necessary, to avoid such default or other violation of said covenants or obligations. Nothing in this Agreement shall restrict the City or the HRA in the exercise of the powers which they may have relating to the Project or the TIF Districts. 224188 5 2.14 In addition, the City and the School District agree that the provisions of paragraph 5 providing for payment of tax increment to the School District shall be limited to and shall apply only to such tax increment attributable to the 1992 payable 1993 real estate property taxes, and at the conclusion of said period, the City and the School District agree to review the circumstances and to attempt to negotiate in good faith such further agreement or agreements as may be permitted by law and which are acceptable to both the City and School District with respect to discretionary payments of such applicable tax increment to the School District. IN WITNESS WHEREOF, the City and the School District have caused this Agreement to be executed by their duly authorized representatives. CITY OF FRIDLEY, MINNESOTA Mayor City Manager INDEPENDENT SCHOOL DISTRICT NO. 13 School Board Chair Superintendent 224188 6 EXHIBIT A Schedule of Tax Increment Financing Districts Within Housing and Redevelopment Project No. 1 of the Fridley HRA TIF District Name 1 Center City 2 Moore Lake 3 North Area 4 Johnson Printing/ 9/7/89 Skywood Mall 5 Paschke 6 Lake Pointe 7 Winfield 8 Shorewood 9 Onan /Old Central 10 Northco Phase III 11 Osborne Crossings 12 McGlynn Bakeries 224188 7 2.15 Independent Certification School Date District No. 5/11/79 14 7/31/81 13/14 5/19/82 11/16 1/20/84 13/14 3/15/84 16 12/24/85 13 10/22/86 16 10/24/86 14 9/7/89 16 4/10/90 16 1/31/92 16 5/5/92 14/16 2.16 EXHIBIT B Sec. 24. X-,rnescta Seccnd 1529 S----PP2e::-e't, fecz*c.i 4E?.177, 10, is a.-,ende7 to :eEd: 70 T Z�Ilcv.s:-Cns Cf llh--s a=:.-!y to 'lax districts and fc: cezt1-f2catic-1 vas :ec-.:Estcd tefc:e Xa,; 1, 15SE, that are iccated -;.i a school di--trlct 4.-1 --hich the -;cters 11-a•e zp_zcve,-; e-4 tax ca.:,,achy rates cr an increrse .—I 'lax ca Fc;, =fl in g - ly rates e r th. e tax increment financ d i s t r c t was cert;f;ed. (1) if there are no c--tstand-ing to which -; n c : e.-,. en. 11 from t h e d s t c t is --D 1 e d G e d C r the he re e:en(ft:-a is z-,:zrcvEd after 1jaV 1, 1983, and .ere are -.0 bCrCs c,-,tstardinq Ell the ti:-.-e the is apprcved, that .ere iss-,:ed Hay 1, 1-388, _:tte-wn C- td- _'- Lc = -L=c- r tcent- the hcrity mi;st ann'0211Y Pay to the school district an a7.-,c,-,nt cf ecL'aj to the i,-cre-ent that is attributable --o ',he i.-:crease i-1 the tax capacity rate -,;-..der the referend-=. L2l if clayse (I) aces -,ct avt)!Y, Lpen approval by a -,.a-:or-;ty vote of the body of the :-.,,:.)ic;-:-ality and the school board, the ?-,jthor;-t-,- 71::st -;aY to the school d-;sllr-;c'- an of ;.-cr'e::.ei-.t eq-al tc the ircre:-,.ent that is attributable to the increase -4:-: :he t, EX CaCaC;Iy rate order the - I r e f e : e -1 d vm . The a:7.cunts of these -:---crements may be expended and -ust to treated by the sc'rocl -1-strict in the same :-anger as e p - c v I d fcr tI.e re•en,,:es cer from the refezenclo-m 1EVY approved ty voters. —e isicns of t h i s subdivision j_cDly to prozccts fcr c c f ;cat cn was requested before, c., z. -.d a f t e r A,., c,-: s z 1 2.17 AGREEMENT This Agreement is dated as of January 2, 1993, is by and between the City of Fridley, Minnesota, and Independent School District No. 14, and provides as follows: 1. Definitions. As used in this Agreement, the following terms have the following meanings, respectively: "City" means the City of Fridley, Minnesota. "HRA" means the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota. " Project" means Housing and Redevelopment Project No. 1 established and operated by the HRA pursuant to Minnesota Statutes, Sections 469.001 through 469.047. 111985 Revenue Bonds" means the HRA's $4,070,000 Tax Increment Revenue Bonds of 1985, dated May 1, 1985. "Limited Revenue Note" means the HRA's $5,603,755.80 Limited Revenue Capital Appreciation Tax Increment Note, dated December 20, 1985. "1985 G.O. Bonds" means the City's $11,550,000 Variable Rate Demand General Obligation Tax Increment Bonds, Series 1985, dated December 30, 1985. "1986 G.O. Bonds" means the City's $10,045,000 General Obligation Tax Increment Refunding Bonds, Series 1986, dated as of August 1, 1986. "1990 G.O. Bonds" means the City's $9,485,000 General Obligation Tax Increment Refunding Bonds of 1990, dated March 1, 1990. "Tax Increment Obligations" means the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, the 1986 G.O. Bonds, the 224190 2.18 1990 G.O. Bonds, and any other contractual obligations of the HRA or the City which were entered into prior to the date of this Agreement and which commit the use of any tax increments from the TIF Districts for specified purposes, projects, or parties. "Tax Increment Act" means Minnesota Statutes, Sections 469.174 through 469.179. "TIF Districts" means Tax Increment Financing District Nos. 1 through 12 within the Project. The attached Exhibit A contains certification dates and other information on the TIF Districts. "School District" means Independent School District No. 14, the Fridley School District. "Subdivision" means Minnesota Statutes Second 1989 Supplement, Section 469.177, Subdivision 10, as amended by Laws of Minnesota- 1990, Chapter 604, Article 7, Section 24 (a copy of which is attached hereto as Exhibit B). 2. Recitals. (a) In certain cases, the Subdivision either requires or allows by agreement certain tax increments attributable to school district referendum tax levies to be paid to school districts. (b) TIF District Nos. 1 and 8 are located entirely within the boundaries of the School District, and a portion of TIF District Nos. 2, 4, and 12 are located within the boundaries of the School District. (c) None of the property within TIF District Nos. 3, 5, 6, 7, 9, 10 and 11 is located within the boundaries of the School District. (d) It is the purpose of this Agreement to provide for payment of certain tax increments to the School District pursuant to 224190 2 2.19 and in accordance with the provision of the Subdivision. (e) Nothing in this Agreement is intended to violate the covenants and agreements heretofore made respecting the application of tax increments from the TIF Districts pursuant to the Tax Increment Obligations. 3. Representations of the City. (a) The Tax Increment Obligations were issued to finance various activities of the HRA within the Project. (b) The 1985 Revenue Bonds are not general obligations of the City or the HRA. Tax increments from TIF District Nos. 1 through 5 are pledged to the payment of the 1985 Revenue Bonds, and there are no other sources of funds pledged to the payment thereof. The final scheduled principal maturity of the 1985 Revenue Bonds is February 1, 1999. (c) The Limited Revenue Note is not a general obligation of the City or the HRA and is payable solely from tax increments pledged for such purposes from TIF District No. 6. (d) The 1985 G.O. Bonds were payable from tax increments derived from TIF District Nos. 1 through 6, and the final scheduled principal maturity of those Bonds was February 1, 2000. However, on February 1, 1990, the City discharged the 1985 G.O. Bonds by paying all then outstanding principal thereof and interest thereon. (e) The 1986 G.O. Bonds are payable from tax increments derived from TIF District Nos. 1 through 6, and the final scheduled principal maturity of those Bonds is February 1, 2000. However, the City has advance refunded the 1986 G.O. Bonds via the issuance of the 1990 G.O. Bonds, and the City expects pursuant to said refunding that all of the principal of 224190 3 2.20 and interest on the 1986 G.O. Bonds will have been paid on or before February 1, 1994. (f) The 1990 G.O. Bonds are payable from tax increments derived from TIF District Nos. 1, 2, 3, and 6, and the final scheduled principal maturity of those Bonds is August 1, 2009. (g) Portions of the principal of the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, and the 1986 G.O. Bonds, and the 1990 G.O. Bonds were outstanding on May 1, 1988, and /or are outstanding on the date of this Agreement. 4. Representations of the School District. (a) On September 230, 1986, the electorate of the School District approved a 2.0 mill continuous levy first effective for the 1986 payable 1987 property taxes. This levy is hereinafter referred to as the 111986 Levy". (b) On September 290, 1987, the electorate of the School District approved (i) a 7.0 mill continuous levy first effective for the 1987 payable 1988 property taxes and (ii) a continuous additional 6.5 mill levy first effective for the 1988 payable 1989 property taxes. These levies are hereinafter collectively referred to as the 111987 Levies ". (c) According to the' Minnesota Department of Education, for purposes of the above - mentioned referendum levies the tax capacity rate equivalents of 2 mills and 13.5 mills are .02261395 and .15264411, respectively. 5. Payment of Tax Increments to School District. The city and the School District hereby agree that, except as otherwise provided pursuant to paragraph 6 of this Agreement, tax increments shall be paid to the School District by the HRA as and to the extent received by the HRA, with respect to the tax increments relating to the 1992 payable 1993 property taxes, as follows: 224190 4 2.21 (a) TIF District No. 12. Since TIF District No. 12 was requested for certification after May 1, 1988, the Subdivision does not apply to that District, and no tax increments from that District attributable to the 1986 Levy or the 1987 Levies are payable to the School District. (b) TIF District No. 8. Since the 1987 Levies were approved after the date of certification of TIF District No. 8, and since on May 1, 1988, there were no bonds outstanding to which increment from TIF District No. 8 was pledged, the tax increments from TIF District No. 8 which are attributable to the 1987 Levies are automatically payable and shall be paid to the School District pursuant to clause b(1) of the Subdivision. Since the 1986 Levy was approved prior to the date of certification of TIF District No. 8, the Subdivision does not apply to that Levy with respect to this District, and no tax increments attributable to' said Levy from this District are payable to the School District. (c) TIF District No. 4. Pursuant to clause b(2) of the Subdivision, the tax increment from TIF District No. 4 which is attributable to the 1986 Levy and the 1987 Levies shall be paid to the School District. (d) TIF District No. 2. Pursuant to clause b(2) of the Subdivision, the tax increment from TIF District No. 2 which is attributable to the 1986 Levy and the 1987 Levies shall be paid to the School District. (e) TIF District No. 1. Pursuant to clause b(2) of the Subdivision, the tax increment from TIF District No. 1 which is attributable to the 1986 Levy and the 1987 Levies shall be paid to the School District. 6. Further Agreements. Nothing in this Agreement is intended or shall be applied in such a manner as to violate the obligations and covenants made by the City or the HRA in connection with the Tax Increment Obligations, and to the extent but only to the extent that the application of the terms of this Agreement would give rise to a violation of said obligations and covenants, including without limitation, the 224190 5 2.22 default in the timely and full payment of the Tax Increment Obligations, the applicable tax increments shall be applied instead in the manner, but only to the extent necessary, to avoid such default or other violation of said covenants or obligations. Nothing in this Agreement shall restrict the City or the HRA in the exercise of the powers which they may have relating to the Project or the TIF Districts. In addition, the City and the School District agree that, except in each case described in paragraph 5 of this Agreement where payment of tax increment to the School District is mandatory pursuant to clause b(1) of the Subdivision, all other provisions of said paragraph 5 providing for payment of tax increment to the School District shall be limited to and shall apply only to such tax increment attributable to the 1992 payable 1993 real estate property taxes, and at the conclusion of said period, the City and the School District agree to review the circumstances and to attempt to negotiate in good faith such further agreement or agreements as may be permitted by law and which are acceptable to both the City and School District with respect to discretionary payments of such applicable tax increment to the School District. IN WITNESS WHEREOF, the City and the School District have caused this Agreement to be executed by their duly authorized representatives. CITY OF FRIDLEY, MINNESOTA Mayor City Manager INDEPENDENT SCHOOL DISTRICT NO. 14 School Board Chair Superintendent 224190 6 EXHIBIT A Schedule of Tax Increment Financing Districts within Housing and Redevelopment Project No. 1 of the Fridley HRA TIF District Name 1 Center City 2 Moore Lake 3 North Area 4 Johnson Printing/ 9/7/89 Skywood Mall 5 Paschke 6 Lake Pointe 7 Winfield 8 Shorewood 9 Onan /Old Central 10 Northco Phase III 11 Osborne Crossings 12 McGlynn Bakeries 224190 7 2.23 Independent Certification School Date District No. 5/11/79 14 7/31/81 13/14 5/19/82 11/16 1/20/84 13/14 3/15/84 16 12/24/85 13 10/22/86 16 10/24/86 14 9/7/89 16 4/10/90 16 1/31/92 16 5/5/92 14/16 2.24 EXHIBIT B Sec. i:. Linnescta StatLtEs Seccnd 1[:9 c•__ �tE-.E:t, sEcL_c.i :: ?.1 ii, SL'bdiVis:Cn 10, :s an-ended to :ead: _:C: -S:Cns of this subd- -visicn a = -1y to tax _nc :E -.En flna.. districts and C:o''ECts for l h1ch certf'_cat:c7 : vas :EC'EstEd �e_c:e Lav 1, 15-Es, that are located 1:] a School diStr:ct i:1 ic9 the voters have a: =:c- ed new tax ca_acitf :atEs Cr an incIEES°_ 1n tax ca_acity rates after the tax 1ncrE -,Ent financing distr'_ct vas certified. (b) (1) _f there are no outstanding bonds on Lay to _hlch incre-er.t from the district is pledced, or ; -; if t o refe:E'dum is c _rcved after Hay 1,'1588, and there are -0 bonds Outstanding at the ti::-.e the rET_e:e nc, -,m is a = zcved, that - ere iss�Ed *E:c:e Hay 1, 1 ?z8, GC-_ .'. CS -:C-k.'.:C1:-- . ^.C:[7.^_ -_:C the authority m -zst an..0211y pay to the school district an a_cL`nt Cf in cre'erlt ecual to the 1ncze -.ent that Is attributable to t::e increase in t- -e tax ca_acity rate under the re_ °erend -= . claLse {3j- cn:cccI (1) does not aeoly, Lpea a_prcval by a majcrity vote of the governing body of the .nunici -ality End the School board, the authority -Lost Coy to t:e school district an a -:o nt of in cr'esent ecLal to the ir.c:er.ent that is attrib•atable to the increase in the tax capacity rate _,der the refere-.c +,,-. (� : -.e a- .ousts of these _r.cre-.ents -ay be expended and must be treated by the school district in the sa:-e .. a nn as Provided fcr the revenues derived from the referer.du:1 levy apprc�ed `;� t`.e voters. he previsions of this _ubdi:isicn apply to protects for hicit certification was requested tefcre, cn, z.r.c zfter c s ! i5 9. 2.25 AGREEMENT This Agreement is dated as of January 2, 1993, is by and between the City of Fridley, Minnesota, and Independent School District No. 16, and provides as follows: 1. Definitions. As used in this Agreement, the following terms have the following meanings, respectively: "City" means the City of Fridley, Minnesota. "HRA" means the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota. "Protect" means Redevelopment Project No. 1 established and operated by the HRA pursuant to Minnesota Statutes, Sections 469.001 through 469.047. 111985 Revenue Bonds" means the HRA's $4,070,000 Tax Increment Revenue Bonds of 1985, dated May 1, 1985. "Limited Revenue Note" means the HRA's $5,603,755.80 Limited Revenue Capital Appreciation Tax Increment Note, dated December 20, 1985. "1985 G.O. Bonds" means the City's $11,550,000 Variable Rate Demand General Obligation Tax Increment Bonds, Series 1985, dated December 30, 1985. "1986 G.O. Bonds" means the City's $10,045,000 General Obligation Tax Increment Refunding Bonds, Series 1986, dated as of August 1, 1986. 111990 G.O. Bonds" means the City's $9,485,000 General Obligation Tax Increment Refunding Bonds of 1990, dated March 1, 1990. "Tax Increment Obligations" means the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, the 1986 G.O. Bonds, the 224198 2.26 1990 G.O. Bonds, and any other contractual obligations of the HRA or the City which were entered into prior to the date of this Agreement and which commit the use of any tax increments from the TIF Districts for specified purposes, projects, or parties. "Tax Increment Act" means Minnesota Statutes, Sections 469.174 through 469.179. "TIF Districts" means Tax Increment Financing District Nos. 1 through 12 within the Project. The attached Exhibit A contains certification dates and other information on the TIF Districts. "School District" means Independent School District No. 16, the Spring Lake Park School District. "Subdivision" means Minnesota Statutes Second 1989 Supplement, Section 469.177, Subdivision 10, as amended by Laws of Minnesota 1990, Chapter 604, Article 7, Section 24 (a copy of which is attached hereto as Exhibit B). 2. Recitals. (a) In certain cases, the Subdivision either requires or allows by agreement certain tax increments attributable to school district referendum tax levies to be paid to school districts. (b) TIF District Nos. 5, 7, 9, 10, and 11 are located entirely within the boundaries of the School District, and a portion of TIF District Nos. 3 and 12 is located within the boundaries of the School District. (c) None of the property within TIF District Nos. 1, 2, 4, 6, and 8 is located within the boundaries of the School District. (d) It is the purpose of this Agreement to provide for payment of certain tax increments to the School District pursuant to 226198 2 2.27 and in accordance with the provision of the Subdivision. (e) Nothing in this Agreement is intended to violate the covenants and agreements heretofore made respecting the application of tax increments from the TIF Districts pursuant to the Tax Increment Obligations. 3. Representations of the City. (a) The Tax Increment Obligations were issued to finance various activities of the HRA within the Project. (b) The 1985 Revenue Bonds are not general obligations of the City or the HRA. Tax increments from TIF District Nos. 1 through 5 are pledged to the payment of the 1985 Revenue Bonds, and there are no other sources of funds pledged to the payment thereof. The final scheduled principal maturity of the 1985 Revenue Bonds is February 1, 1999. (c) The Limited Revenue Note is not a general obligation of the City or the HRA and is payable solely from tax increments pledged for such purposes from TIF District No. 6. (d) The 1985 G.O. Bonds were payable from tax increments derived from TIF District Nos. 1 through 6, and the final scheduled principal maturity of those Bonds was February 1, 2000. However, on February 1, 1990, the City discharged the 1985 G.O. Bonds by paying all then outstanding principal thereof and interest thereon. (e) The 1986 G.O. Bonds are payable from tax increments derived from TIF District Nos. 1 through 6, and the final scheduled principal maturity of those Bonds is February 1, 2000. However, the City has advance refunded the 1986 G.O. Bonds via the issuance of the 1990 G.O. Bonds, and the City expects pursuant to said refunding that all of the principal of 224198 3 2.28 and interest on the 1986 G.O. Bonds will have been paid on or before February 1, 1994. (f) The 1990 G.O. Bonds are payable from tax increments derived from TIF District Nos. 10, 2, 3, and 6, and the final scheduled principal maturity of those Bonds is August 1, 2009. (g) Portions of the principal of the 1985 Revenue Bonds, the Limited Revenue Note, the 1985 G.O. Bonds, and the 1986 G.O. Bonds,. and the 1990 G.O. Bonds were outstanding on May 1, 1988, and /or are outstanding on the date of this Agreement. 4. Representations of the School District. (a) On October 8, 1981, the electorate of the School District approved a 5.0 mill continuous levy first effective for the 1981 payable 1982 property taxes. This levy is hereinafter referred to as the 111981 Levy ". (b) On February 27, 1986, the electorate of the School District approved a 6.0 mill continuous levy first effective for the 1986 payable 1987 property taxes. This levy is hereinafter referred to as the 111986 Levy ". (c) According to the Minnesota Department of Education, for purposes of the above - mentioned referendum levies the tax capacity rate equivalents of 5 mills and 6 mills are .05226653 and .06271984, respectively. 5. Payment of Tax Increments to School District. The City and the School District hereby agree that, except as otherwise provided pursuant to paragraph 6 of this Agreement, tax increments shall be paid to the School District by the HRA as and to the extent received by the HRA, with respect to the tax increments relating to the 1992 payable 1993 property taxes, as follows: (a) TIF District Nos. 9, 10, 11, and 12. Since TIF District Nos. 9, 10, 11, and 12 were requested for certification after May 1, 1988, the Subdivision does not apply to those 224198 4 2.29 Districts, and no tax increments attributable to the 1981 Levy or the 1986 Levy from those Districts are payable to the School District. (b) TIF District No. 7. Since the 1981 Levy and the 1986 Levy were approved prior to the date of certification of TIF District No. 7, the Subdivision does not apply to those Levies with respect to this District, and no tax increments attributable to said Levies from this District are payable to the School District. (c) TIF District No. 5. Since the 1981 Levy was approved prior to the date of cert- ification of TIF District No. 5, the Subdi- vision does not apply to the 1981 Levy, and no tax increments attributable to said Levy from this District are payable to the School District. Pursuant to clause b(2) of the Subdivision, the tax increment from TIF District No. 5 which is attributable to the 1986 Levy shall be paid to the School District. (d) TIF District No. 3. Since the 1981 Levy was approved prior to the date of certification of TIF District No. 3, the Subdivision does not apply to the 1981 Levy, and no tax increments attributable to said Levy from this District are payable to the School District. Pursuant to clause b(2) of the Subdivision, the tax increment from TIF District No. 3 which is attributable to the 1986 Levy shall be paid to *the School District. 6. Further Agreements. Nothing in this Agreement is intended or shall be applied in such a manner as to violate the obligations and covenants made by the City or the HRA in connection with the Tax Increment Obligations, and to the extent but only to the extent that the application of the terms of this Agreement would give rise to a violation of said obligations and covenants, including without limitation, the default in the timely and full payment of the Tax Increment Obligations, the applicable tax increments shall be applied instead in the manner, but only to the extent necessary, to avoid such default or other violation of said covenants or 224198 5 2.30 obligations. Nothing in this Agreement shall restrict the City or the HRA in the exercise of the powers which they may have relating to the Project or the TIF Districts. In addition, the City and the School District agree that the provisions of paragraph 5 providing for payment of tax increment to the School District shall be limited to and shall apply only to such tax increment attributable to the 1992 payable 1993 real estate property taxes, and at the conclusion of said period, the City and the School District agree to review the circumstances and to attempt to negotiate in good faith such further agreement or agreements as may be permitted by law and which are acceptable to both the City and School District with respect to discretionary payments of such applicable tax increment to the School District. IN WITNESS WHEREOF, the City and the School District have caused this Agreement to be executed by their duly authorized representatives. CITY OF FRIDLEY, MINNESOTA Mayor City Manager INDEPENDENT SCHOOL DISTRICT NO. 16 School Board Chair Superintendent 224198 6 EXHIBIT A Schedule of Tax Increment Financing Districts Within Housing and Redevelopment Project No. 1 of the Fridley HRA 2.31 Independent 224198 Certification School TIF District Name Date District No. 1 Center City 5/11/79 14 2 Moore Lake 7/31/81 13/14 3 North Area 5/19/82 11/16 4 Johnson Printing/ Skywood Mall 1/20/84 13/14 5 Paschke 3/15/84 16 6 Lake Pointe 12/24/85 13 7 Winfield 10/22/86 16 8 Shorewood 10/24/86 14 9 Onan /Old Central 9/7/89 16 10 Northco Phase III 4/10/90 16 11 Osborne Crossings 1/31/92 16 12 McGlynn Bakeries 5/5/92 14/16 224198 2.32 EXHIBIT 3 Sec. 24. Hlnnescta Stat,_,tes Secc:-.d 15E9 sect!cn 4i?.177, 10, is E-..endE-_5 to :ezd: ,_cV:s_:Cns Cf th_;S a=-Z*,y to tax -nc:e-..e.-.t financing C _:stricts and :::o-'ects fCZ WhiCh CE:t_4f2CEt_'C._1 %-'LS _C-C_•.:es"Ed �efc:e Hay 1, 1558, that are located -;.i a schoc! d_,strict. In which the voters 11-a-.e aL=,:cved new tax ca- acity r tES Cr E- jnc:ease 1.1 tax casacity :atEs after the tax _;nc:e:-..ent f-SnEncing district -.:as certified. (1-) (1) there are no Outstanding bonds c.-I Hay 1, to --;h-;ch _;zc:e.-..ezt frcm the district is ?-ledc-ed, Or if the ref=_:e'd,,:m is app:cved after Hay and "here are bonds cLtstanding at the ti.-ze the reZere=_,.z is a=:Cved, tl.at were i s s-,:Ed '--e fc.- e Hay i C 3 C tf tns: C t n; tctnt--nate C the authority ann',:211Y PEY to the school d;str;ct as a:-,,c,_,nt Of incre.ment ec,,:zl to the inere =ent that is attributable to the increase in the tax capacity rate under the zeferend-,:.-.1. -1 21PPrO"al (2) 14' cla-,:se f3j-nnn__c_i (1) dces not apoly, UPO, - - by a ;-,.ajor-,ty vote of the governing body of the :-,,-L:.)icipal_;ty and the school board, the authority 74A:st -';aY to the school district, an a-..ci:nt of _;- cr*ement eccal to the ;ncze.ment that is attri'� table to the inc:ease in the tax capacity rate vnder the refere.-.dum. (c) ;he of these incre.--ents may be ex-pended and treated by 1. tre school district in the =_a -e -:­ner as prc-.,ided fcr the reven,,:es deri-:cd frc.m the refere.-.d,,2.-.i levy aT_-rcvec] 1:Y he voters. -he prcviSiCns of this azDlY to ro-Ccts for which cert;,:catjc, �_s rec2ested Iefore, c.), after 2.33 n � Q ¢' z O O 00 O 00 O N O 8 O N N ri M C7 C C N 1� OOD, n CO h N O O N O Cl) O> N N OD O co co cr) 1� 7g� J O M 00 OD O C7 0D N co f,A 7 �hA (spy s0 Ipq n N CV 00 L O W 00 N Of O <O (D CO OD 00 !O n c� N a C6 N r^ z z r OD 00 CO a 41L n -q- OD � n 00 Q °v c N °v u� " W � � N r 1U) � N pp r In O^ N Cm U') z a Q .n- � V Q W Q w Q w ►- m o m o v v m m Y C m m m m CL CL m 3 D z z z z CO Cl) Cl) Cl) N '7 <D N st c0 N V O .�. _..;iii........ Q Q <i:........ _. z Z r � J LO O U J U J J � b cc N c CO LO W' 0 N co n co 0 (0 = U) O O O O ,', p N (p O U U °' z Z) O U 0 a ir LL w w J Q d U 0 w H Q N W z 0 0 w Q m U) cr U Q D J 0 0 0 W H U W 0 CL 2.34 o co co T a O 06 O N CO co Z LJ: N O Cl) O -� N Au ..................... ': f" 1n 'CO) O S c0 O C'j rp`� �D S O N O O O S cM0 Z �- N O O 'OV tp N O �V (pp1 O O O O pp (O fD N 0) O O O V O t` Cl) W O O (� fp N th a0 M N O t C07 M IA — N N M I.........a. V;N M M co N N N M N Q Z M In 0M M M M In 1p 1q tM M M fp 10 t0 z z z :::❑ ba aW LL U Q O a0 M M M O t` N 0) � tp0 Cl) O n N N O 0) �t� p)) O W W V Z.. a: Q QN b `i' n O In 0) n O 10 N 0) C7 f0 N n O O )N F to to LC Q co Q U ¢¢ Q y' m m m0Uo CD s" o; U U 0 3 70 0_ 0 T.S. liJ m � C C N C m m Vr -S r tJ k C r q� W U U i a U 0= U q C C zza -°, C0 Oz .Z .- N V M N It M co co In n 0) a Q <: z z J a) _J C C CD CD ¢ � N :E 2 W N M (D w LL p w w cc J 0 z W a�D J OD CO O N N N O M N = m 0) 0) = N � N 2.25 . � j § k ° E & );a } 3 o _ M 2 b 2 43 Q E f c ] 9 ) 2 A 7 ) ` j 2 \ §_ j D f / ) $ § 2 ® i © ° c © 2 » § \ R � / o { ) } ` 2 CL 7 E ] E g 3 \ / }$\ /\ � k j k E$ t / \ e ) I 2 0 § ƒ 7\ j { \- 0 \% 7�) } § { ( / / § \ / \ j § 2 ` 2k � \\ �/ § 2 / C. /! _ = a = 4 c f) \ �§ /� �§ zE CD 2 \ , ° ƒ 2 ± \ - \ 2 k < k/ j k \) k/ 7\ k k /(D � �� / �� \\ \} / /�� D &< && w / f < E 6 E y y y y E y 3.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley TO: Housing and Redevelopment Authority Members FROM: William W. Burns, Executive Director of HRA DATE: October 2, 1992 SUBJECT: Lake Pointe Resolution Please note the attached memorandum and resolution that have been prepared by James R. Casserly, the HRA's financial consultant. Mr. Casserly and Barbara Dacy, Community Development Director, have been negotiating a settlement of our differences with the Woodbridge Corporation for more than one year. The attached material represents what I consider to be a very satisfactory resolution of the Lake Pointe related issues. It is my understanding that both the City Council and the HRA will approve resolutions authorizing the execution of the agreement. Various documents, including the agreement, will be signed by both parties and placed in escrow until approximately December 1, 1992. On or about that date, the HRA will make a check available to the Woodbridge Corporation for the amount stipulated in the agreement. When the check has been presented, we will receive title to the property, a termination agreement, and a copy of the revenue note that was originally issued to Woodbridge. It is also my understanding that on or before October 15, 1992, the HRA will determine the minimum amount of taxes that are due and payable prior to October 15, 1992. This amount will be paid by the HRA prior to the tax deadline. This will be done after the City has been assured that those representing the Woodbridge Corporation have signed all the various papers associated with this agreement, and have placed the documents in the proposed escrow account. I recommend the HRA's approval of the attached resolution. Thank you for your consideration. WWB:rsc Attachments 3.2 Casserly Molzahn & Associates, Inc. 215 South 11th Street, Suite 300 • Minneapolis • Minnesota 55403 Office (612) 342 -2277 • Fax (612) 332 -4765 M E M O R A N D U M TO: City of Fridley FROM: James R. Casserly Mary E. Molzahn DATE: October 1, 1992 RE: Resolution and Agreement with the City, the HRA and Lake Pointe.Investment Company Attached you will find a Resolution authorizing execution of an Agreement and the Agreement between the City, the HRA (the "Authority ") and Lake Pointe Investment Company (the "Redeveloper ") which terminates the Redeveloper's interest in the Lake Pointe site (the "Site "). After a year of negotiations we are proposing that you pay to the Redeveloper the sum of $4,230,000 to terminate the Redeveloper's interest in the Site and to terminate the $5,603,755 Revenue Note payable to the Redeveloper. In addition to this payment, the Authority would assume the existing taxes, penalties and interest. After subtracting the Tax Increment portion of the taxes, the net taxes payable by the Authority are approximately $550,000 for total cash required by the Authority of $4,780,000. The net tax payment includes approximately $150,000 of penalties and interest which the County, at its discretion, may be willing to abate. If the Authority receives the abatement, the cash requirement will be within $50,000 or 1.1% of $4,579,850, the amount originally authorized by the Authority and the City. To finance the cash requirement, the Authority should be able to issue tax exempt debt. Interest rates on such debt are currently at a 20 year low. As a result our holding costs will be considerably less than projected when we commenced our negotiations. Resolution of the Lake Pointe problem has been an important goal of the City and the Authority. Adoption of the Resolution very satisfactorily accomplishes your objectives. We recommend its adoption. 3.3 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF AN AGREEMENT BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA; THE CITY OF FRIDLEY, MINNESOTA AND LAKE POINTE INVESTMENT COMPANY, A LIMITED PARTNERSHIP. BE IT RESOLVED by the Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority ") as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority enter into an Agreement (the "Agreement ") by and between the Authority; the City of Fridley, Minnesota (the "City ") and Lake Pointe Investment Company, a Limited Partnership (the "Redeveloper "). Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted a development program known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program ") pursuant to Minnesota Statutes, Sections 469.001 et sea. 2.02. The Authority hereby finds that the Authority and Redeveloper entered into a Contract for Private Redevelopment, dated December 20, 1985, to provide the redevelopment of certain real property described on Exhibit A of the Agreement (the "Site ") located within the City's Redevelopment Program. The Authority further finds the Authority and the Redeveloper entered into an Addendum to the Contract, dated August 15, 1986. 2.03. The Authority hereby finds that physical development of the Site by the Redeveloper has not been undertaken as a result of numerous causes. 2.04. The Authority hereby finds that it is in the best interests of the Authority and the City to terminate the exclusive rights of the Redeveloper to acquire and develop the Site. 2.05. The Authority hereby finds that it should retain title to the Site for future development which should occur at the discretion of the Authority and the City. 2.06. The Authority hereby finds that the Agreement promotes the objectives as outlined in its Redevelopment Program. 3.4 Page 2 - Resolution No. Section 3. Authorization for Execution and Delivery. 3.01. The Chairperson and Executive Director are hereby authorized to execute and deliver an Agreement which substantially conforms to the Agreement presented to the Authority as of this date and all Exhibits to the Agreement which include a Settlement Escrow Agreement and a Termination Agreement. The Chairperson and Executive Director are further authorized to execute and deliver any document necessary for the implementation of the Agreement. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS DAY OF , 1992. LAWRENCE R. COMMERS - CHAIRPERSON ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR 4.1 ii Q W r A z Q R Y LL } �Tt O v U hi CJ CL Q 1 N (!) 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FROM: CITY OF FRIDLEY RE: BILLING FOR OPERATING EXPENSES FOR SEPTEMBER, 1992 AND SEPTEMBER 1992 ADMINISTRATIVE EXPENSES ADMINISTRATIVE BILLING: SEPTEMBER ADMINISTRATIVE PERSONAL SERVICES SEPTEMBER ADMINISTRATIVE OVERHEAD TOTAL ADMINISTRATIVE BILLING SEPTEMBER OPERATING EXPENSES: AUGUST MANAGEMENT FEE - KORDIAK NSP - RICE CREEK PLAZA NSP - LAKE POINTE POSTAGE MINNESOTA NAHRO REGISTRATION - DACY MINNEGASCO AUG MOWING - RICE PLAZA BREAKFAST MEETING MOWING - RICE PLAZA TOTAL OPERATING EXPENSES FOR AUGUST 13,631.00 252.25 13,883.25 194.00 162.30 54.63 50.16 125.00 6.76 63.60 55.30 63.60 775.35 TOTAL EXPENDITURES 14,658.60 U Ll 0 i ii z I CL L) i cf) : Li i CL i s-4 z Ll D U 0 i ILI X i Ix CL LJI I z Q i C. 0 i z i CQ 0 i Z Ll I i ❑ L} Z I Z Ld F-- Z III SQ z w z is m w iC 0 -1 Ix m <1 NF-M LL C CO 3 i - - f -I L -t X z 01 0;-4 w W W a :3 ix H <E CO 3 flL LL -i CL n 0 m 0 m 0 ­0 0 No OM 0 V) 4 4 4 4 4 4 0!0,-000-4 0 1- 0 1-,- 0 C%Ill 0C-310i`10 0 Ile; 1r; 000000 000000 000100 010000 1 1 1 i i I 00000,-i cl•j C1•4 C•4 ;N -.0 [`- N N IN 0.4 C-4 r .4 C•4 C•4 N (14 i0s 0r a, 0- IDS los "I, *-, 1\ "I � 1-11 -4 4q -H H %ri -f 000000 vi %r- 1--i a %-i I,-; IT T v IT lq- I;r � 11, co 03 03 0 r- �- so 10 0 N N a, it r� v) Q L) Ld Ic z -i uj U W - C i- I z Ic 10 w U C F- 0 o w Z Lu L) :) 0 z 0 0 z -i Ld u u Ld 0 ii 6, ix a: Ld M -r W '- 0 L- u 0 iL z i- 1; !-- i- 0 C H C C L) I:Q' Q X4 M UK NO C. (1-1 C z i W. i W I E i C I 0, o > w 0 r1 > Ld E 0 i if <L- Z i <L- ly- i--i i CL 0 in I w W 0 i L) z I Z Ld F-- Z III SQ z w z is m w iC 0 -1 Ix m <1 NF-M LL C CO 3 i - - f -I L -t X z 01 0;-4 w W W a :3 ix H <E CO 3 flL LL -i CL n 0 m 0 m 0 ­0 0 No OM 0 V) 4 4 4 4 4 4 0!0,-000-4 0 1- 0 1-,- 0 C%Ill 0C-310i`10 0 Ile; 1r; 000000 000000 000100 010000 1 1 1 i i I 00000,-i cl•j C1•4 C•4 ;N -.0 [`- N N IN 0.4 C-4 r .4 C•4 C•4 N (14 i0s 0r a, 0- IDS los "I, *-, 1\ "I � 1-11 -4 4q -H H %ri -f 000000 vi %r- 1--i a %-i I,-; IT T v IT lq- I;r � 11, co 03 03 0 r- �- so 10 0 N N a, it r� v) Q L) Ld Ic z -i uj U W - C i- I z Ic 10 w U C F- 0 o w Z Lu L) :) 0 z 0 0 z -i Ld u u Ld 0 ii 6, ix a: Ld M -r W '- 0 L- u 0 iL z i- 1; !-- i- 0 C H C C L) I:Q' Q X4 M UK r _ 5.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: October 2, 1992 TO: William Burns, Executive Director of HRA`�.4�- FROM: Barbara Dacy, Community Development Director SUBJECT: Status of Mississippi Street Improvement Project The Public Works Director has advised me of the potential cost to the HRA for the Mississippi Street improvement project. Anoka County has completed the bid process. The low bidder was.Forest Lake Construction at $853,649.40. The Public Works Director is estimating that the cost to the HRA is $250,055.35. The cost to the HRA includes the road improvement costs, sewer and water utility costs, and the corridor improvements such as the double ball lights, the red brick, and the internally illuminated street name signs. The cost does not include engineering and inspection fees (which would probably add about $10,000 - 15,000), charges from MnDOT on the signalization, and costs to underground the overhead NSP lines. NSP has submitted an estimate of $115,000 for the underground installation work. We had estimated about $105,000. The total proposed costs, however, are well within the budget originally anticipated by the HRA. The 1992 budget estimated $330,000 for roadway improvements, $105,000 for NSP to underground the utility lines, and $200,000 for the corridor improvement costs for a total of $635,000. At this point in time, the total anticipated cost is $365,055.35 plus MnDOT charges and engineering costs. NSP will begin work on the overhead lines yet this fall, and the street work will begin next spring. I have contacted all the affected businesses regarding this schedule. I will notify them again next spring prior to the street improvement project. BD:ls M -92 -614 Engineering lwoo!-- SewerWater LU KParks Streets Maintenance MEMORANDUM 5.2 TO: Barb Dacy, HRA Executive Director PW92 -288 FROM: John G. Flora, Public Works Director DATE: September 25, 1992 SUBJECT: Mississippi/University Intersection Project We have received the bid sheets from the Anoka County Highway Department for the Mississippi and University Avenue intersection project. The County had originally estimated the project at $847,319. The low bidder was Forest Lake Construction, Inc., at $853,649.40. These figures address only the construction estimates. Actual amounts will be determined based upon construction. It also does not include the engineering or inspection costs for the project. Based upon the bid costs, the City's participation amounted to $250,055.35. JGF:cz cc: W. Burns Maly Engineering Sewer water Parks streets Maintenance MEMORANDUM TO: Barb Dacy, Executive Director, HRA PW92 -283 FROM: John G. Flora,' Public Works Director DATE: September 24, 1992 SUBJECT: NSP Agreement NSP is currently planning to underground the electrical distribution system associated with the Mississippi/University intersection project. As you may recall, this proposal was discussed with NSP back in 1984. Plans were made and estimates were provided. The current estimate to underground the electrical service on University Avenue between 5th and Main Street is a cost not to exceed $115,000. NSP will be undergrounding the line and back filling the holes. The City will have to remove and replace the fence at the Dairy Queen. Major asphalt work and repairs are tentatively scheduled to be completed with the improvement project. Suggest you notify the HRA that NSP will be initiating the work shortly and that the current cost is $115,000. This total amount should be within the overall project amount. The increase from $95,000, estimated in 1986, is a result of the time delay in the construction work. JGF:cz Attachment E �a3EY, STATEMENT OF WORK REQUESTED ►�Tr NORTHERN STATES POWER COMPANY September 22, 1992 WORK REQUESTED BY City of Fridley(HRA) WORK TO BE AT City of Fridley (See Attached Sketches -2) 5.4 ADDRESS Mississippi Street from University Avenue West to 2nd Street, Mississippi Street South to Satellite Lane, - 700' along University Avenue West Service Road, North of Mississippi Street. CONSISTING OF: Northern States Power Company will replace the existing overhead electric distribution facilities with underground distribution along the above routes in conjunction with the County Highway Improvement project as a cost not to exceed $115,000.00. This price does not include the cost to relocate services to existing buildings. It is also assumes that installation of NSP underground facilities will be coordinated with the street improvement project. The City of Fridley to provide necessary easements and clear area of all construction obstacles. NSP will back -fill and compact along cable route after installation of underground facilities. All restoration of construction area is the responsibility of the City of Fridley, and will be completed in conjunction with the County Highway Improvement project. The facilities installed or removed by the Company shall be the property of the Company and any payment by customer shall not entitle customer to any ownership interest or right therein. The undersigned hereby requests and authorizes the NORTHERN STATES POWER COMPANY to do the work described above, and in consideration thereof, agrees to pay an amount not to exceed One Hundred Fifteen Thousand and 00 /100 ($115,000.00), in accordance with the following terms: Pavahle within 30 days followinu notice from NSP that construction is completed. Credit Approval Receipt of the above amount hereby acknowledged on behalf of NSP by NORTHE . N ST S POWER COMPANY Customer City of Fridley ��� By - �f NSP Representative Larry Benson Area Brooklyn Center NSP Project No. FROM MIS AAE N- 556744 Total NOT TO EXCEED $115,000.00 5.5 CITY OF FRIDLEY Attachment D Capital Outlay Request Form Priority #1 Submitted by Barbara Dacy /Paul Hansen Budget Year 1992 Department Division COMMUNITY DEVELOPMENT HRA Dollar Account Amount City Manager's Council's No. Description Requested Recommendation Decision Improvements - 45530 Mississippi Street/ 635,000 University Avenue Description of Purchase: Estimated Cost Unit Cost Quantity Total Roadway, utility, and University Avenue Corridor 635,000 improvements in conjunction with Mississippi Street, Anoka County project. 635,000 Additional Costs/Trade -in (Conversion costs, accessories, set -up Estimated Cost/Trade -In costs, trade -in description, etc): Unit Cost Quantity Total Justification: Roadway 330,000 NSP 105,000 Corridor improvements 200,000 Total 635,000 N d) I V O O Z W fr N O O r Q N Q J CL W U Fin Ii N 00 0 0 0 0 In 0 Q }. �t cD M n 4 �t O O Ln O 4 W N p, N N 0 ch NA W to rn cD N4 N in T r C7 a) V/ /N4 VI Cl) co O 0 m (D O O O O O O O O O (D Ln p H CL O (h a) O O O (O LU tOD Nw co O 0 N 0 O 0 O 0 O 0 O 0 N O N M �r, O M O O O O O O T O n O N Q, n (D n n O co O T ch (D CO O O ce) e} 0 O 0 O 0 O 0 (D cD LO J' O U 0 0 O N ao cD n n O C) N T cl N co Cr) co O n O 0 O 0 O 0 O 0 N r N 0 Wss Z 0 N 0 CO 0 O 0 O 0 T 0 n O n CO n to O) n 0 (Dy Nn T V w W N ak O O N M O 0 O 0 O 0 O 0 N (h O O) } O (D w 0 0 0 0 u) 0 O ,� CO r rn eo co Ln N M N a7 c9 0 X 0 0 0 0 0 0 0 0 (7) N CO LA co O O O O O O O O T N U) r Lo N M ) OD (D O) n r LO LT Q' N LA O N O O It CR 0 O 0 O 0 O 0 O d' 00 O N CJ; o 0) coc°Drn o 0 0 (D o LA w r Q!° M r O O c0 Lb O Q7 O O O O O O ri r LO m! 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