Loading...
HRA 01/14/1993 - 6330HOUSING AND REDEVELOPMENT AUTHORITY MEETING THURSDAY, JANUARY 14, 1993 7:30 P.M. WILLIAM BURNS EXECUTIVE DIRECTOR OF HRA CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, JANUARY 14, 1993, 7:30 P.M. Location: Council Chambers Fridley Municipal Center 6431 University Avenue N.E. CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: December 10, 1992 ACTION ITEMS: CONSIDER CONCEPT APPROVAL OF FRIDLEY TOWN SQUARE DEVELOPMENT . . . . . . . . . . . . CLAIMS AND EXPENSES . . . . . . . . . . . . . . . . . . 2.1-2.§ INFORMATION ITEMS: RICE PLAZA UPDATE . . . . . . . . . . . . . . . . . . 3.1 ST. WILLIAMS SENIOR HOUSING PROJECT UPDATE. . . . . . . 4.1 LAKE POINTE PROPERTY UPDATE . . . . . . . . . . . . . . 5.1 OTHER BUSINESS ADJOURNMENT CITY OF FRIDLEY JOINT HOUSING & REDEVELOPMENT AUTHORITY AND CITY COUNCIL MEETING, DECEMBER 10, 1992 CALL TO ORDER: Chairperson Commers called the December 10, 1992, Housing & Redevelopment Authority minutes to order at 7:35 p.m. ROLL CALL: Members Present: Larry Commers-, Virginia Schnabel, John Meyer, Duane Prairie, Jim McFarland Members Absent: None Others Present: William Burns, Executive.Director of the HRA Barbara Dacy, Community Development Director Rick Pribyl,.Finance Director Paul Hansen, Staff Accountant Dick Larson, Deputy Chief and Fire Marshall Pat Wolfe,.Section 8 Housing Coordinator William Nee, Mayor Dennis Schneider, Councilmember Steve Billings, Councilmember Ed Fitzpatrick; Councilmember Nancy J. Jorgenson, Councilmember -at -Large Lowell Demars, Asst. Fire Chief, Columbia Hts. APPROVAL OF. NOVEMBER 12, 1992, HOUSING & REDEVELOPMENT AUTHORITY MINUTES• MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the November 12, 1992, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. CONTINUE DISCUSSION ON RECOMMENDED HOUSING PROGRAMS:. Ms. Dacy stated that the reason for the joint meeting is to discuss two of the four recommended housing program: the rental inspection program and the single family rehab. program. The City Council reviewed staff's recommendations at the end of October, and the HRA has reviewed the housing program recommendations over the last two months. Both the Council and the HRA board had specific concerns about two out of the 4 -5 programs staff had recommended. 8 HOUSING & REDEVELOPMENT AUTHORI_TY_MTG_., DECEMBER 10, 1992 - PAGE 2 Ms. Dacy stated staff is prepared to present the Council and the HRA with more information to follow up on both boards' concerns. Guestspeakers and resource people have been invited to help the HRA and Council discuss and. resolve these issues.. As they go through each issue, she has prepared an outline of discussion points to help.the Council and HRA try to resolve their concerns. Ms. Dacy stated she would start with the rental inspection issue. The HRA had a lot specific questions about the rental inspection program. She stated staff has invited Dick Larson, Deputy Chief and Fire Marshall, and Pat Wolfe, Section 8 Housing Coordinator, to summarize their work experiences and to specifically address some of the HRA's comments. Staff has also invited Lowell Demars, an inspector from Columbia Heights, who is implementing the rental inspection program very similar to the one that staff is suggesting for the City of Fridley. Ms. Dacy stated she has also prepared a brief memo on the City of Crystal which has initiated the same type of program. She has more information about fee schedules regarding the annual` licensing and how much it would take in fees to cover inspection costs. Ms. Dacy stated staff would like to follow up on the concerns that the Council and HRA had about what they can do in conjunction with the rental inspection program to establish a rental rehab for.the multiple family owners. Mr. Commers stated he believes there is a real fundamental issue here regarding the rental inspection program, and that is whether or not it is appropriate to give this type of responsibility to the HRA. By that, he means the fundamental authority that the City has and the fundamental responsibility to do the inspections. The Fridley HRA has never acted as an operating type of body in the past. He believed that if the City Council feels there is a high priority for the rental inspection program, then the Council should look at whether it should be responsible to fund the program and take care of it.. Mr. Commers stated that in the past, the HRA has discussed whether or not, because of potential conflicts, the HRA should have a separate executive director and separate legal counsel. As the budget has grown, the HRA has discussed whether or not they should have their own staff people. In the past, the HRA has always rejected that, but it comes down to the fundamental issue as to what.is the real charge to the HRA and what is the City's real responsibility for the different functions that take place? The policing and code violations have always been the City's responsibility, as well as zoning and other types of housing - related issues. This has to be worked out irrespective of the program,-the nature of the program, and how it should be designed. I HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 10. 1992 - PAGE 3' Mr. Billings stated that from his perspective, he agreed with Mr. Commers. He stated this discussion would be better served if they wait until the Mayor -gets to the meeting. He agrees with Mr. Cowers th_atd__fundamentally, the inspection is a function of the City rather than the HRA. If the rental inspection program is going to be done in conjunction with a rehab program, then maybe it, is better done by an HRA inspector rather than a City inspector, because then the people might be more willing to go along with the program. Mr. Dick Larson stated the rental code has-been around since the middle 1970's as Ordinance 220. These are the guidelines they use for inspections. Originally, there was a person who did rental inspections. When this person left the City, the rental inspections were divided between departments. The Fire Department got the interior and the Code Enforcement Officer in the Community Development Department got the exterior. Mr. Larson stated the Fire Department gets into the buildings in the common areas of all rental and commercial - properties by Fire Code. They do not go -into individual apartments under Fire Code. The ordinance. was generally set up to aid the tenants against unscrupulous landlords, but the Code works both directions. He has been subpoenaed to court for both tenants and landlords. Mr. Larson stated they are trying to inspect 10% of the units, but they have not had the manpower to do that. Last year, Jon'Thompson from the Engineering Department was lent to the rental inspection program for the winter months. -Mr. Thompson inspected about 500 units. Otherwise, the only inspections they are able to do'right now is through complaints. He can get into a unit in one of three ways:. the tenant invites him in, the landlord invites him in, or with a search warrant. He has .only had to get three search warrants in the last 13 years. Tenants and landlords are generally very cooperative. Mr. Larson stated that he had some information on rental inspections for the last two years. In 1991, they had a total of 4,038 licensed individual rental units in the City. In 1991, they handled 201 complaints. In looking at the complaint list, he picked out four of the top complaint apartment buildings. Out of 201_complaints, the top four owners had 48 complaints. Those four owners own 127 units which is 3.1% of the total 4,038 units.. The 48 complaints were 24% of the total .complaints. Mr. Larson stated that since Mr. Thompson has been making inspections and they have been able to be a little tougher on the landlords and tenants, in 19921 with 4,038 units, they had 137 complaints. The top four owners had 19 complaints so they dropped the total complaints down 13.8% from'1991. r HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 10, 3.992 - PAGE 4 Mr. Prairie asked what are the typical complaints Mr. Larson receives. Mr. Larson stated that he had received _a complaint—from the_ landlord at Springbrook .where- tints had severely trashed. an apartment. He had to declare the unit unfit for human habitation. He has only had to do that :three times. I- , Ms. Jorgenson asked what kind of compliance does Mr. Larson get with violations. Mr. Larson stated there are no outstanding complaints. All violations have been resolved. He follows up on all violations until they are completed. Mr. Commers stated that of the 137 complaints in 1992 and 201 complaints in .1991, how many of those complaints necessitated court action? Mr. Larson stated there have been two court actions. He .stated that the judges do not understand rental codes and don't consider these violations very serious. Mr. Commers asked if these inspections also involve Section 8. inspections. Mr. Larson stated he does not do Section 8 rental inspections. Pat - Wolfe does those. However, they. do work together and share information with each other. Mr: Larson stated he has seen a big improvement by having a part- time inspector working four months. Councilmember Jorgenson stated Minneapolis has a special Housing Court. Did that require special legislation? Ms. Dacy stated, yes, it did. She stated it is specific to Hennepin and Ramsey Counties. When staff, talked to City Prosecutor Carl Newquist, he said there would have to be a state law change in order for Anoka County to establish a housing court. Mr. Larson stated staff has discussed the license fees, and he cannot see charging the landlord with a nice building and who keeps it nice the same fee as the slum landlord. They should be able to penalize the. poor managers and landlords so it gives them some incentive to fix up their buildings. Mr. Commers asked Mr. Larson what he believes is the main issue. Is it City -wide and isthere an identifiable problem? What-is the real issue or problem of enforcement? HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 10, 1992 - PAGE 5 Mr. Larson stated the problem is they just do not have enough man- power to get out and make the inspections. If they could inspect at least 1/4 -1/2 of the total rental units.every year, a lot of the minor complaints would be caught with the inspection. Mr. Meyer stated the City is getting the most complaints from the multiple family buildings. The fees should be higher for multiple family buildings than for single family buildings. Ms. Dacy stated there are two sources of information on fee schedules: 1. One source is from other communities that have recently re- evaluated their fees or are doing this program. 2. The other source is that the Finance Department and.the City has hired Publicorp, Inc., to analyze all the current charges in the City. That report should come out in January. The City Council will receive and evaluate that report. Ms. Dacy stated staff has . analyzed other community fees '(Bloomington, Crystal, and Brooklyn Park) in order to relate to the amount of work they are currently spending on the rental inspection program. She stated she had taken their rates and applied them to the Fridley units (single family, duplexes, triplexes, and multiples),.and came-up-with a potential amount to give the HRA an idea of a range. Based on the fees charged by Crystal, the highest amount Fridley would raise -would be $57,310. Crystal bases their costs on a manpower analysis between the housing inspector and the clerical staff and uses the hourly rates and estimated time for inspections, followup work, correspondence writing,.etc. Crystal instituted this program in January 1992. Mr. Prairie asked what Fridley currently raises in fees. Ms. Dacy stated they have currently raised $17,914. Mr. Meyer stated that the fee schedules for virtually every one of these other communities are going Completely in the wrong direction. These schedules do not make any sense, and Fridley should not even think of doing anything like them. Staff is saying that most of the problems are in the multiple family dwellings. If .they add in the cost of complaints, followup, etc., and weight them, that is the way it should be done. More dollars are being charged to the smaller units then for larger units, and that does not make sense. Councilmember Schneider agreed that the sliding scale is not right. It seems like they should, be able penalize those owners where there are problems. HOUSING A REDEVELOPMENT AUTHORITY_MT©., DECEMBER 10. 1992 - PAGE 6 Mr. Meyer stated one problem in doing something like the number of complaints. The owner of a building with a lot of units might have tenants who are.-mad at the owner, and SO .I.- of the complaints are spurious complaints. There is no reason why that owner should be unfairly penalized; therefore, it might revert back to analyzing the complaints and the types of units and setting the fees accordingly. Ms. Dacy stated staff is not inspecting interiors of single families or duplexes. Staff does not know the level of compliance with the City's current rental code on some of these units. It may take 2 -3 inspections in order for that particular unit to come into compliance. . So you still spend the same amount of time for a single family unit doing inspection and followup as you would with a larger unit, because when they get into the larger units, some of the larger complexes are going to be paying $1,500 - 2,000 per year. In the case of the Meadow Run Apartments,. a majority of those units are in compliance, so that analysis works both ways. Ms. Dacy stated that one- thing the HRA and City Council need to do is agree on an annual licensing fee, and they have to develop a schedule for the number of excessive reinspections and complaints. There should be a separate fee charge for that. Councilmember Jorgenson asked how they address the issue when there are tenants who are mad at the landlord and they continue to call in with complaints, and the City -is penalizing that landlord for tenant - initiated calls. — Mr. Larson stated they would have to set.up some kind of tier on the severity of the violations. What they are finding is that toward the end of the month when eviction notices are given out because people haven't paid their rent, the tenants call the City and make minor complaints. Ms. Dacy stated the annual licensing fee structure staff is proposing is based to cover the manpower costs to administer the general program. A separate structure is being proposed to cover that extra cost due to the excessive complaints. Mr. Prairie asked if any of the other communities have a penalty for complaints.. Ms. Dacy stated that of the communities staff has interviewed, the answer is, no; but Crystal is evaluating it. Mr. Meyer stated in listening to Mr. Larson's testimony, it sounds like most of the problems come from a certain group, and they should penalize or at least. bring, as an absolute minimum, the problem group to the same level as the average citizen who rents out a single family house. HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 10, 1992 - PAGE 7 Councilmember Schneider stated that if this was his program, he would try to identify the 3 -4 worst apartment buildings in the community on an annual basis, give them a thorough inspection, give them 6 months to make repairs, and at the end of 6 months if there is no sign of the owner making the repairs within those 6 months to a year, then the City should acquire the-building and resell it to another owner. He would like to. see the City take some aggressive action and concentrate on the problem areas on an annual basis, rather than spreading out their resources over 2,000 units. Mr. Commers stated they have to be careful with the distinction between what they might call the people who are moving in who don't care and run the apartments down and the vast majority of elderly income people who live in the City who can only afford the same level of apartment. They have to be careful not to exclude the seniors from housing. However, that doesn't mean the apartments should be allowed to deteriorate and not meet code. Ms. Schnabel stated, the HRA has never talked about a "truth -in- housing" inspection on rental units. If, prior to the sale of any multiple housing units, there was some type of inspection program that could be implemented to assure them that these units have been improved prior to sale, that might help the HRA as opposed to the HRA buying a building and rehabilitating it themselves. . Ms. Dacy stated that as of now, the other communities have only applied "truth -in- housing" to single family homes. Ms. Pat Wolfe stated.it is very expensive, and that is probably why other communities are not using "truth -in- housing" for multiple units. Mr. Larson stated he did not know of anyone.on City staff at this time who would have the expertise to make those kinds of inspections. Mr. Commers stated it -is a good idea, though, and might be something the HRA might want to look into in the future. Ms. Dacy stated they would have to investigate how many times the multiple family properties turn over and whether that kind of program would be cost - effective. Councilmember Jorgenson stated the'City Council looked at "truth - in- housing!' for single family residential homes a few years ago. One of the problems they found wrong with the program is that if you have someone looking at a home, and the truth -in- housing inspector has found a lot of problems with a home, that buyer may choose to go to another community to buy the same kind of unit in the same shape for .less money. So, there is a problem in how a "truth -in- housing" program would be applied. Is it going to cause particular units that are on the market for sale not to be sold? HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 10, 1992 - PAGE 8 Will the. prospective buyer go somewhere else, and then these empty buildings fall back upon the City or a bank? They have to take those types of things into consideration. . If there are identifiable problems, it is a wonderful opportunity, for the *City to offer some type-of assistance to correct those problems instead of sending the prospective buyer to another community. Mr. Larson stated that out of the 4,000 units in the City last year, only 32 units changed hands. Mr. Commers thanked Mr. Larson for coming to the meeting and for the good information. Councilmember Billings stated that, regarding the fee structure, they keep talking about a new licensing fee. He believed that is the wrong approach. He believed they should have a licensing fee .for a license to do business in the City of Fridley'to operate a rental unit. That should be a license fee that covers the cost of issuing the license, covers the cost of the necessary police protection, covers the cost of resident. complaints, etc. Then, there should also be a certificate of occupancy for the building that is a separate fee altogether. The rental unit,_ whether residential, commercial, industrial, should be inspected on a periodic basis to see if it qualifies for habitation. Right now the City issues a certificate of occupancy when the buildings are built, and that, is the last time they issue a certificate-. of occupancy. If the unit fails the inspection, the certificate.of occupancy does not get renewed. This is a way of catching the problems while they are little problems. Mr. Commers stated that is good, but that philosophy should also be applicable to the single family units. Single family units deteriorate just as badly. They have a lot of single family homes in Fridley that do not meet code. They have to treat everyone fairly. Councilmember Billings stated the difference is that, except for about 125 out of some 7,000 homes, the owner is living. on the property. With commercial property, the owner of the property may be doing business on the property but could be renting it to someone else. They could couple it with the truth -in- housing for single family and require that the house be brought up to code, because residential property is changing hands more often than single family. Ms. Schnabel agreed with Mr. Commers that they should treat everyone equally, but, secondly, she did not know how 'a program like that could be worked with 4,000 rental units alone. Is the certificate of occupancy going to be based ' on . the inspection on all individual units or a general inspection of the building? What criteria would be used on rental units, and how are all those inspections going to be done in a year and followup inspections? 11 HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 10. 1992 = PAGE 9 This sounds like an enormous task which is beyond the HRA's scope because they lack the manpower and'the money to fund it. Councilmember Billings stated the 'money to fund it comes from the annual fee. Ms. Pat Wolfe stated the Section 8 program gives her an advantage in her inspections in that she can withhold money from the landlords until problems are fixed, and that is done quite frequently. She does all the inspections for Section 8 housing in Fridley. Ms.. Wolfe stated she had brought along some material about the Housing Quality Standards which were developed by HUD. She had also included a list of some of the common things that cause a failed inspection. She stated that she is advocating very strongly for inspections to be done in all the units in a building. Ms. Dacy stated staff has been evaluating adopting the Housing Quality Standards as part of the Chapter 220 code. Ms. Wolfe stated that applications for Section 8 housing for one and two bedroom units were taken in August 1992, and over 4,000 people, metro -wide, applied; so there is a real need out there. Fridley averages about 186 Section 8 units. The Section 8 housing in Fridley has declined over the years, and she feels that much of that is due to the fact that the fair market rate that HUD determines has gone up. Fridley's housing stock doesn't appeal to people anymore. Many of the buildings In. Fridley are outdated and do not have the amenities as the newer buildings in Coon. Rapids or Blaine. Ms. Wolfe stated that a lot of people, especially those eligible .for three- bedroom units and who 'want to live in the northern suburbs, tend to move towards the Coon Rapids, Blaine, Anoka areas where there are new apartment buildings. Ms. Schnabel asked about how tenants are screened for Section 8, and what questions are landlords asking that determines that they get-a good tenant or a bad tenant. Ms. Wolfe stated she did not know what questions are asked. She has suggested that the landlords go through a rental research company. The landlord pays a fee for the rental research company to run credit. - checks and past references. This has been very effective. What happens then is that the landlord charges the tenant an application fee of $15 -20 to cover this cost. Depending upon how much information the landlord wants, the application fee goes up. Sometimes, just the fact that there is an application fee will screen out some tenants. ' n � HOUSING & REDEVELOPMENT AUTHORITY MTG. & DECEMBER 10. 1992 - PAGE 10 Ms. Wolfe stated that when she goes into a unit that has violations, she sees a rental license, and she wonders how the owner can have a rental license when there are so many violations. So, she agreed-with Councilmember Billings that she would like to__ see the certificate of occupancy which tells her the building is up to code. Mr. Meyer stated he is concerned about what they are trying to do. He is hearing that the problems are the lack of screening tenants and a few unscrupulous landlords.- Is a huge rental inspection program for paint -up, patch -up going to cure the tenant problem? He did not see any correlation between the two. Ms. Wolfe stated she does not refer her good tenants to certain buildings in Fridley where she knows there are problems., because she knows there are better places for them to go. Mr. McFarland stated that landlords have to be motivated to keep their buildings in good shape.' If an investor cannot get a cashflow . out of the unit, he is not going to put any money into the. unit, and the unit will deteriorate. He did not know if using public money to help an investor keep up an income property for profit.was appropriate for the HRA. Ms. Schnabel stated they are here to talk about the housing stock and part.of the HRA is "redevelopment ", and they need to.focus on those kind of the issues. Mr. Meyer stated that if they are trying to keep out the people who bring in crime and trash apartments and a lot of problems could be solved somewhat by a screening program, then they should find a way to get all the landlords to do screening. It is much cheaper than hiring inspectors for a program of paint -up, patch -up. Ms. Dacy stated she agreed that the bad .tenants are one part of the problem and are part of the housing issue, but the main reason the HRA and the Council are discussing this is because the housing stock is aging and there are good tenants in deferred housing maintenance units. The charge of the HRA is to try to take care of the housing units as best as possible for housing quality. A screening technique for managers is one,way to attack the tenant part of the issue, but neither the HRA nor the Council is going to be able to solve the drug problem. However, staff is suggesting some tools that can be combined and.balanced to try to attack the problems and try to maintain the livability of the units. Mr. Commers stated they are also trying to get a sense of value. The HRA recognizes there are some problems, but it is just a part of the overall picture. Is it worth spending $100,000 for two inspectors to cure this 10% problem of the picture when there are a lot of other problems? -Or should they take that .$100,000 and make it available for those landlords who want to do- something to maintain their buildings? HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 10, 1992 - PAGE 11 Ms. Dacy stated that is why staff has suggested some-options for the HRA to consider. The. HRA has discussed the 3 -4 options, and staff agrees that the HRA needs to prioritize the money as best as possible. Right now Mr. Larson and Ms. Wolfe are inspection 10% of the units on a complaint basis. If they increased the inspections at least to 1,000 units, they would be getting at some of the issues on the deferred.maintenance. It will not solve all of the problems, but it will attack some of them. Then, they can try to create a program to find the.problem buildings and see if they can update those units. Councilmember Schneider stated that if they agree that they want the landlords to start screening tenants, then why don't they tie in something with the certificate of occupancy so that if the landlord screens tenants, the fee for inspections will be reduced. That would give the landlord an economic incentive to do the screening. Ms. Wolfe stated that something like that would.be hard to track. Mayor Nee stated that. if they adopt the certificate of occupancy mentioned by Councilmember Billings and enforce it if a landlord. doesn't comply with the violations and shut down the unit, it might show that.the City really means business -. Mr. Meyer stated it is a credible idea. Ms. Schnabel stated that particularly with a high vacancy rate, it might be less of a risk of really displacing people -if they can be moved into other units. Ms. Schnabel stated that regarding whether the HRA should help someone who is in the business of making money for profit, the HRA does that every time they give money to a business for improvements such as McGlynn Bakeries. It is the same concept. Ms. Dacy introduced Lowell Demars, Assistant Fire Chief for the City of Columbia Heights. Mr. Demars handed out a packet of information that included Columbia Heights' Housing Maintenance Code. Mr. Demars stated they have about 2,050 -2,060 rental units in Columbia Heights. In the Fire Department, he has six full -time people, two who are obligated to the Housing Maintenance Code, and one.who does Fire Code inspections. To date, they have done about 2,800 -2,900 property inspections with the three people. They inspect every building in the City business -wise and.-industry-wise twice a year. They inspect the exterior of rental property once a year. They have divided the City into four-quadrants, and they inspect one quarter of all the rental housing interior and exterior HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 10. 1992 - PAGE 12 every year, with the exception of some of the bigger buildings with ,70 -80 units. With those buildings, they spot check. Most of their major units are pretty well controlled. Mr. Demars stated that a lot of the single inspections run into two, three, and four recalls until the problems are resolved. The major problems are in Grid A between 45th and 47th Avenues and Central Avenue and Johnson Street. Mr. Demars stated that in 1991, they inspected about 35% 'of the housing maintenance rental code inspections. In 1992, as of October 1, they have inspected every rental unit at least once. For each unit, they make an initial inspection with a 30 day period to correct the violations, they make a followup inspection after 30 days and if nothing is done, they will give the landlord another 30 days. On the third inspection, if they have not gotten compliance on-every issue cited and the landlord has not.appealed any of the issues, the City will assess the landlord $25 every time they come back. Most of the owners (95 %) have complied, and less than 3 -4% of the owners are not cooperative. Most of the owners are happy with the rental inspection program because it allows the City and the landlord to get into an apartment unit .where they know or think they have problems. Mr. Demars stated they have also stressed in this program to the owners that they would like the owners to screen their tenants a little better. -Most of the owners have agreed that they are going to screen their tenants better. He stated they have gone into units that. are totally destroyed by the tenants. That is where the housing maintenance code comes in. They have many more problems with tenants than with the landlords. The tenants create the problems for the landlords. Mr. Demars stated that some of the things he and his staff look for with the housing maintenance code on the exterior is the condition of the structure. Every building is required to have storms and screens. At the same time they go through the unit with the Housing Maintenance Code, they go through the unit with- the Fire Code. They also look for junk vehicles; they require a hard surface parking area for one vehicle per rental unit. This year, a concrete pad will be required to store all boats, trailers, etc. They check for sod, that the lawns are maintained, no weeds, just a general thorough exterior look. With the interior, they make sure that everything is up to code in the buildings. Councilmember "Jorgenson asked if Columbia Heights has an annual occupancy permit. Mr. Demars stated that Columbia Heights does have an annual occupancy permit. HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 10, 1992 - PAGE 13 Mr. Demars stated that they have only taken three property owners to court over violations. One case the judge threw out because of inadequate paperwork, one case the judge threw out because he thought that the case was too trivial and that Columbia Heights has too many ordinances, and in one case the property owner was fined $500 and told his property had to come into compliance within 30 days. Mr. Demars stated he believed that because of this housing maintenance code and their inspections, they have cleaned up 750 of the problems in Columbia Heights. This 'has all been accomplished in one year. Mr. Commers asked if the Fire Department inspectors work full time. Mr. Demers stated the two inspectors work 24 hour shifts. They will inspect five 8 -9 hour days out of a three week period. They also work Saturday and Sunday. In a three week period, they are each putting in about 40 hours of street -time, but .they are - actually putting in about another 40 hours of paperwork. He stated these two people have a heavy workload, but they work hard and do an excellent job. Councilmember Billings stated these inspectors are putting in about 200 hours every three week period, which is equivalent to about 1 1/2 persons. Mr. Meyer asked what kind of background Mr. Demars has. Mr. Demars stated he has been in the fire service for 25 years. Of those 25 years, -he has put in about 14 years inspecting industrial /commercial buildings under the Fire Code. - He is now the Assistant Fire Chief in Columbia Heights and "he directs the housing maintenance program. He chose the people he felt were most qualified to do the job. Mayor Nee asked what type of credentials do the inspectors have. Mr. Demars stated the two inspectors are firefighter EMT's. They have an extensive inspection background. � They also have an excellent knowledge of the housing maintenance code. Mr. Prairie stated that Mr. Demars had stated that he feels they have corrected 75% of the problems in Columbia Heights. What has happened to help that correction? Mr. Demars stated it is because they have actually gone through the units and pointed out to the tenants that the City and the landlord know the tenants are causing the problems and the landlord is going to start changing the tenants. HOUSING & REDEVELOPMENT AUTHORITY MTG.,--DECEMBER 10, 1992 - PAGE 14 Ms. Dacy stated that the Fridley City Council and the HRA are trying to decide whether or not the City.of Fridley needs a rental inspection program. Right now they make inspections only when there are complaints, and about 100 of the existing units are inspected annually. Would Mr. Demars recommend that the City of Fridley increase the amount of rental inspections? Is a rental inspection program worthwhile based on his experience? Mr. Demars stated, -yes, he would recommend that the City of Fridley have a rental inspection program. He stated that if the Council and HRA want to keep the City:in reasonable shape, now is the time to do it. They should not wait until they get into the situation that Columbia Heights is in. In order for the program to work, staff must have the.full backing of every member of the Council and HRA. Otherwise, it will not work and there will be nothing but problems. He would also recommend that when they are drawing up an ordinance, they must be very careful.to make everything equal for all properties. Mr. Demars stated they are looking at their. housing maintenance code from the standpoint that they want the appearance of the City to improve, but they will never cure the interior problems. Those are ongoing. They can just try to weed out the people who are causing the problems. Mr. Demars stated that next. year, they are going to inspect the exterior of privately owned dwellings also. They have tested the waters. The Fire'Department did about five inspections this year basically:on complaints from rental property owners. The property owners complied on every code violation. The only thing the housing maintenance code does not address is commercial/ industrial properties, and they are looking at doing that next year. Mr. Demars stated one of the problems in Columbia Heights is the tagging issue. In Columbia Heights, only the Fire Chief, a police officer, a community service officer, or the building inspector can issue tags. Neither he nor his inspectors can issue a tag. His advice to Fridley is to make sure they give their inspectors the right to issue tags. They are the ones seeing the problems and they should have that authority. Mr. Larson asked Mr. Demars to estimate the hours per week spent on rental housing inspections. Mr. Demars stated he would estimate about 90 man hours per week. That is his paperwork time and inspection time. That does not the include the inspectors' after hours paperwork time. Mr. Demars stated that speaking from the Fire Department's point of view, if the City of Fridley. added three full -time .people to its Fire Department, those three people could handle the housing maintenance code, handle all the fire calls, handle all the medical HOUSING & REDEVELOPMENT AUTHORITY_MTG., DECEMBER 10. 1992 - PAGE 15 calls, - run a 24 hour medical service, and provide that much better protection for the citizens than Fridley currently has. If they hire three people.for the building department, then they only have a building department and they have not added anything to the City's protection. If a city is going to put money into hiring people, then it should hire people that can do a dual purpose. Mr. Commers thanked Mr. Demars for coming and for the information on the Columbia Heights housing maintenance code. Mr. Demars and his inspectors certainly deserve a lot of credit for cleaning up a lot of the problems in Columbia Heights. Ms. Dacy asked if the HRA could come to some type of closure on the staff's recommendation and to give the staff new direction. Staff's recommendation is that the HRA and City Council institute a rental inspection at some intensity. Ms. Dacy stated . Mr. Burns and she met with two apartment owners that day to test the market if the HRA set up its own program for assistance. They got some good feedback from those owners. Ms. Dacy stated staff is attacking the multiple family issues with two key issues: (1) to establish the rental inspection program; (2) to utilize HRA money for a rehabilitation program. Does the HRA agree that those two approaches attack the problem? Ms. Schnabel stated she believed that part of the problem goes back to what Mr. Commers said earlier in the meeting, and that is the philosophical approach about who is really going to be responsible for the costs: Councilmember Billings stated he is seeing the rental inspection program and the rehabilitation program as two distinct separate issues. He believed that right now they should focus on whether there should ,be an inspection program, and should it be' the responsibility of the HRA or the City of Fridley? Councilmember Schneider stated his problem with staff's recommendation is that it is only going to solve a piece of the problem. They are hearing that there are a lot of different issues, i.e., screening issues, inspection issues, how many inspections, education issues, etc. Mr. Burns stated the staff came prepared with information based on the discussions.at prior HP.A and City Council meetings. Staff's recommendation is that there be a rental inspection. program and that the City pay for the rental inspection program out of the fees generated from increased rental inspection fees or from- an occupancy permit or truth -in- housing. Staff also came prepared to suggest that they cut back the intensity of inspections from 2,000 units to 1,000 units and raise about $50,000 in fees from the City to cover the cost of the 1,000 units. That leaves $110,000 out of t HOUSING & REDEVELOPMENT AUTHOR_I_TY MTG., DECEMBER 10. 1992 - PAGE 16 the $500, 000 that was earmarked from HRA money that can be used for a variety of purposes. The main thing would be to assist with multiple family rental rehab. Staff will be meeting with 'a representative from MHFA, and it does look like there are some good ways they can marry the $110,000 with MHFA money. Mr. Burns stated he liked the idea of a certificate of occupancy. They might want to reserve a little bit of money for tenant relief that comes about as a result of some kind of certificate of occupancy program. Mr. Burns stated that as far as organizing landlords and property owners, staff has met with two landlords who think that is a wonderful idea and pointed out that it has worked in Brooklyn Center. The City makes a difference. It helps to structure the landlord.association and helps to get continuity that isn't there otherwise. Mr. Commers stated that based on the opinion he. stated earlier about whether or not the HRA should be responsible for running a rental inspection program, a better inspection program would certainly help to solve a part of the problem. And, then maybe the HRA can do something as far as rehab or education, which-are, more typical HRA activities., to also try to solve part .of the problem. After hearing the discussion at this meeting, it doesn't sound like Fridley has such a bad problem. Councilmember Billings stated. there are a lot of tools they will need to use over the next 10 years to revitalize the City. The rental inspection program and rehabilitation program are two valuable-tools. If a year from now they find that one of these tools is not working right, they can certainly look for another tool, but they have to get something going now to get things done. Councilmember Schneider stated he is not so concerned about the intensity of the number of inspections, but the application of that number. Councilmember Billings stated he agrees with Mr. Commers that the rental inspection program is a function of the City and not the HRA. Mr. Burns stated that when they met with the apartment owners, one of the things that came out of that meeting was that in restructuring the rehab program and maybe the inspection program, they want to focus in on things that are the biggest problems for 30 and 40 year old apartment buildings. The apartment owners gave staff the following list: windows, roofs, appliances, electrical systems, and heat. The apartment owners suggested that the City focus narrowly on those kinds of things. HOUSING I REDEVELOPMENT AUTHORITY MTG., DECEMBER 10. 1992 - PAGE 17 Mr. Burns stated most of the apartment units are very highly leveraged, and they do not have a lot of room to borrow more money. So, the City's involvement in even this small list of things is going to be expensive. They-are going to be at the 50% level of participation, or maybe even more. Mr. Meyer stated after hearing the discussion at this meeting, one of the things he learned is that nothing. the City could do with-the inspection program is going to change the tenants, and the tenants appear to be 95% of the problem. The only thing that is going to help the tenant 'situation is the screening issue. Mr. Meyer stated the City currently has an inspection program. He' is also hearing that there doesn't appear to be a big problem. The City has received 250 complaints from a small number of buildings. Why can't they take the current inspection effort and concentrate on cleaning up the mess in these areas with better judicial action? Mr. Meyer stated that-it seems there are life safety things that should be looked at harder than broken windows: Maybe they should take some of the resources they have and redirect them, and then get harder enforcement. Mr. Meyer stated he is a little puzzled to know where the City's action and the HRA's action using public monies can be used. to just focus on rental property. What about the other properties .which are deteriorating? Mr. Demars said they are going to be doing that in Columbia Heights. Councilmember Jorgenson asked about vacant single family residential HUD property which sometimes sits vacant up to a year. Maybe they could acquire some of those homes, rehab them, and sell them to low and moderate income families through something like the HOME program. Ms. Dacy stated there are about 1 -2 vacant HUD homes at this time. The particular aspect that. Councilmember Jorgenson is talking about is part of the scattered site acquisition component on'which staff has recommended the HRA spend $100,000. Ms. Dacy stated she believed Mr. Demars was saying that Columbia Heights starting doing these inspections at a time when the housing stock was getting a little far behind them. Staff is just trying to say that they have concerns that with the inspections that are occurring now at the existing level, staff feels the City will start to fall behind in the early 1990's and by the end of the decade they will be even further behind. That is basically the reason for trying to increase the rental inspections now. Mr. Meyer stated he has the concern of creating a patch -up, paint - up police force in the whole City. HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 10. 1992 - PAGE 18 Ms. Schnabel stated the City already has a housing maintenance code that can be enforced which applies to single family as well as multiple housing. She did -not believe that is a police unit enforcement of a code. That is just helping the neighborhoods keep their properties maintained and their values up. Mr. Burns stated that staff is also recommending that Chapter 220, the current rental inspection code, be upgraded. Ms. Dacy stated the Council and HRA have a lot of questions about income issues and financing issues that should probably be discussed at another meeting. Mr. Commers stated that in terms of a closure, he believed the HRA had no objection with the City upgrading the inspection program. As far as the HRA is concerned, they are willing to look at programs.. Maybe there are low interest loans the HRA might be willing to make to put people into some properties. Councilmember Billings stated he wants to take another look at the inspection process. They either need to have an inspection program or money, and maybe they have to do a little of both. They are going to have to work with the building owners, the property• managers, and the tenants and do a tremendous amount of education. They also need to do . something similar for the single family as well so'it is demonstrated that the City is doing something city- wide. The HRA and City Council agreed to continue discussion on the housing issue on Saturday, January 9, 1993, at 10:00 a.m. 2. CONSIDER APPROVAL OF CONTRACT WITH CASSERLY LAW OFFICE P.A. MOTION by Mr. Prairie, seconded by Mr. McFarland, to approve the contract with Casserly Law Office, P.A. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. CONSIDERATION OF ENGAGEMENT AGREEMENT FOR THE AUDIT ACCOUNTING SERVICES FOR THE FRIDLEY HRA: MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the. Engagement Agreement with Tautges, Redpath & Co., Ltd., for the audit accounting services for the Fridley HRA. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 10, 1992 - PAGE 19 4. CLAIMS AND EXPENSES: a. Check Register (2266 -2273) MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the check register dated December 4, 1992. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. RICE PLAZA UPDATE: Information item only. ADJOURNMENT: \ MOTION by Mr. McFarland, seconded by Ms. Schnabel, o a 'ourn the meeting. Upon a voice vote, all voting aye, Chairpe on Commers declared the motion carried and the December 10, 1992, Housing and Redevelopment Authority meeting adjourned at 11:15 p.m. Respectfully sulimitted, L e Saba R ording Secretary � 612 334 3382 612 - 334 -3352 CASSERL.YMOLZAHNFLINT 907 R02i05 JAN 07'93 12:52 1.1 Casserly Molzabn & Associates, Inc. 215 South 11th Street, Suite 300 - Minneapolis * Minnesota 55403 Office (612) 342 -2277 a Fax (612) 332 -4765 ME - MO_itAffVUM TO: City of Fridley HRA Attention: William Barbara FROM: James R. Casserly Mary E. Molzahn DATE: January 7, 1993 RE: Wagner.Project Burns, City Manager Dacy, Development Director After some weeks of discussions on the above project it is our understanding that only two unresolved issues remain. These issues include the mount of the HRA assistance and the taming of the assistance. The HRA had previously indicated a willingness to provide $250,000 of assistance and City Council members have indicated that they view this amount as a maximum number. Lowell Wagner has indicated that due to the very stringent lending requirements he and his partner are already making a cash investment in the project in- excess of $325,000. This is in addition to the- development fee and overhead costs of approximately $275,000 which is being contributed to the project. I have explained to Mr. Wagner the City's position, but he may wish to seek an increase in the Authority assistance to $300,000. The issue of the timing of the HRA investment in the project is more complicated. The construction lender is demanding that all equity by the partners and the RRA be provided at the time the loan is closed. Over the last several years the RRA has normally made its contribution to a project at the time a certificate of completion was issued. This makes the HRA very secure since it has the "last money" in the project. However, it is not unusual for the HRA to the have the "first money" in a project- This is exactly what is occurring in the Southwest Quadrant and the Lake Pointe sites. In the Wagner, project the HRA is being asked to invest its money simultaneously with the Developers. There are several mechanisms which the HRA can employ to secure its investment including: 612 334 3382 " 612 -334 -3382 CASSERLYMOLZAHNFLINT 907 P03i05 SAN 07'93 12_53 1.2 Y Page 2 City of Fridley HRA January 7, 1993 1. partnership guarantee. 2. Personal guarantees. 3. Guaranteed construction contracts. 4. Preleasing requirements. S. A right of reverter. 6. Lender cooperation. The HRA would certainly not extend its funds unless the lender had made a firm commitment to finance the project. These details can certainly be worked out with any potential lender. The right of reverter mentioned above may be too cumbersome. If the property were not developed, it would revert to the HRA. However, this right of reversion would be subordinate to the construction mortgage. The security it offers may be'illusionary but it is worth mentioning. Rarely is there a riskless project, but the HRA can achieve a substantial level of comfort that the project will be completed and tax increment generated. JRC,MEM /db �; 612 334 3382 612- 334 -3382 CASSERLYMOLZAHNFLINT 907 P'04 ,-05 JAN 07'93 12:53 1.3 CITY OF FRIDLEY. MINNESOTA 65TH & UNIVERSITY AVENUE - WAGNER PROJECT /10,000 AUTO SITE PORTION OF PROJECT LOCATED WITHIN EXISTING CENTER CITY REDEVELOPMENT TIF DISTRICT ONLY ORIGINAL % OF TAX YEARS DATE CAPACITY ESTIMATED CAPTURED ESTIMATED LESS; AVAILABLE PRESENT VALUE ANALYSIS TAX TAX TAX AOMIN TAX SEMI ANNUAL CUMULATIVE CAPACITY CAPACITY INCREMENT EXPENSES INCREMENT BALANCE BALAM 0.0 fi /1993 12.766 12,766 0 � 0 0 0 p = 0.5 12 / 1993 12,766 12,766 0 .0 0 0 0 0 7.0 6/ 1994 12,766 60,821 48,055 0 0 0 0 1.5 12 / 1994 12,766 60,821 48,055 0 0 0 0 0 0 2.0 6 / 1495 12,766 60,821 48,055 24,437 1,222 23,215 19,467 0 19.467 2.5 12/ 1995 12,766 60,821 48,055 24,437 1,222 23.215 18,629 38.096 3.0 6/ 1996 12.766 60,821 48.05S 24,437 11222 23,215 17.827 85,923 3.5 12/ 1996 12.766 60,827 48.055 24,437 1.222 23.215 17,059 72,982 4.0 6/ 1997 12,766 60,821 48.05S 24,437 1.222 23,215 16.324 89,306 4.5 12 / 1997 12,766 60.821 48,055 24.437 1,222 23,215 15,621 104,928 5.0 6 / 1996 12,766 60.821 48,055 24,437 1,222 23.215 14,949 119,877 5.5 12 / 1998 12.766 60.821 48,055 24,437 11222 23,215 14,305 134.182 6.0 6 / 1999 12,766 60.821 48.055 24,437 1,222 23,215 13.689 147,871 6.5 12 / 1999 12.766 60,821 48.055 24,437 1.222 23,215 13,100 160,970 7.0 6 / 2000 12.766 60,821 48,055 24.437 1,222 231215 12,535 173,506 7.S 12/ 2000 12,766 60,821 48,055 24,437 1,222 23,215 11,996 185.501 8.0 6/2001 12,766 60,821 48,055 24.437 11222 23,215 11,479 196,980 8.S 12 / 2001 12,766 60.821 48,055 24.437 1,222 23,215 10.985 207,965 9.0 6 J m 12,766 60,821 48,055 24,437 11222 23,215 10,512 218,477 9.5 12/ 2002 12,766 60,821 48.055 24,437. 1.222 23,215 10,059 228.536 10.0 6 /2003 12.766 60,821 48,055 24,437 1,222 23,215 9.626 238,162 10.5 12 / 2003 12,766 60,821 48.055 24,437 1.222 23,215 9,211 247.373 11.0 6 / 20M 12.766 60,821 48,055 24.437 1.222 23,215 8,815 256.108 11.5 12 / 2004 12.766 60,821 48,055 24.437 1.222 23,215 8,435 264,623 12.0 6 / 2005 12.766 60,821 48.055 24,437 1,222 23.215 8,072 272.695 12.5 12/200S 12.766 60,821 48.055 24,437 1,222 23,215 7,724 280,420 13.0 6 J 2006 12.766 60,821 48,055 24,437 1.222 23.215 7,392 287,811 3.5 12 / 2006 12.766 60,821 48.055 24,437 11222 23.215 7.073 294,885 4.0 6 j 2007 12.766 60,821 48,055 24,437 1.222 23,215 6.769 301,654 4.5 12 2007 12,766 60,821 48.055 24,43 , . i 07 308.-rSr 5.0 6 / 2008 12,766 60,821 48,055 24,437 1,222 23,215 6,198 314,329 5.5 12 /2008 12,766 60.821 48,055 24.437 1.222= 23,215 5,931 320,261 6.0 6 / 2009 12.766 60,821 48,055 24.437 1.222 23,215 5.676 325.937 708,668 35.433 673.235 325,937 __. 325.937 �acn=--^_^ rrrwma�aararr�a�s. �aaaara��musarrn�== assaerra-- nmmrrwet� �amasr�y' pmursrsaacraruc�caarr�e�c3aarre�cr- zvarrrra CASSERLY MOLZAM & ASSOCIATES 612 334 3382, w 612- 334 -3382 CASSERL_YMOLZAHNFL I NT 907 P05/05 • JAN 0'7' 93 12: 54 1.4 TENS CITY OF FRID EY, MOM 27- Oct -92 ORIGINAL MARKET VALUE PAY 1993 312,300 LAND 220.500 BUILDING 91,8DO ORIGINAL TAX CAPACITY PAY 1992 12.766 ESTIMATED MARKET VALUE ESTIMATED TAX CAPACITY 3.00x 4.602 1,708.437 ESTIMATED TAXES PAY 1995 78,300 76.988 SQUARE FEET 26,100 TAXES /SQGAm FOOT 3.00 CONSTRUCTION 1993 VALUATION 1994 TAXES PAYABLE 1995 REDEVELOPMENT DISTRICT PORTION INFLATION �. TAX RATE PAY 1942 0.000% EXPENSES ADM 1.01704 PV RATE 6/93 5.0Ox 9.00% SOWCES: MW OF 1993 TOTAL SOURCES USES: LEGAVFINANCIAL/DISCOUNT SIT€ IMPROVEMENTS TOTAL USES SURPLUSASNORTFALL) SOURCES & USES 5.002 CASSERLY MOL7JIFW & ASSOCIATES 325,937 32.5, 937 16,297 300,000. 316,297 9.640 e1 `w !1 � 1 0 1 ¢ L i CL I ¢ I w ! Pl Z MI \i A NI H i LLi! 10- L ra i } PI as \ I 0 N .a 1 Y \I U Ca I w U x Oi L CC I G L i z O H r L H U to w A Uw _x U� z i i i } i w i z 6 i Z > w I M CXEi a Oi CD J w 1 00 > 1 �19Q i E w i u u 1 w z u tI 4T X Hi I U wa:3 i is CYGCO 1 U L L X I O H ¢ w wcL CL O U UU r wu> >-j w w HHw w0 -1 z C>4 0 U L z } L wwJ Jw r ww< corm w Z =ozot;:uz IT CWWHULw A wwwIE -m¢3� JJLtowCt0UI wLDaw rr >�0mux 000 Lzw< O O Z H L H w r 0, 0 .iNMQ'0.0 a i` i` >` N I- >` P` N N N N N N N N N N N N N N N N . z >E Q ¢ IL ca O J UU Hz0 >¢ua: w wH - IX LL w NLto� IL H Z O U H g NOO OWJI�- .a }w 0) :3 3 CL } ¢ H ¢ > r r NJUrzA z to H w¢:3 ui }' }tntrnoc0) i!ww - utr, ¢wJJ }zw¢ ztoQAQHzY {t ti)HHOL+_Z0 ¢¢stX0LHZ N N N N N N N N OPPP.PPPOPP \\\ \ \\ \\ OOOOO.iCM -two .i N NNNNNNNNa .1 H .i .i vi .i .i .ei CC i ¢ i w i Y M i P I 2 �i ¢ a 1 \ i O 1 H 3 a O 1 CL ri oa \ I v i Y \ i = i U � I O 1 L L 1 � 1 ce � I L B I z EI M CL � O) 00 >I \ Iii w I u rt i wEU 1 Q jw H cc 1 CL. Ld Cry, IL _ { z O H r L H CC U t0 w A Y CL wm x z t "I w E z CL O z w U Iw- UA J & i J H J D7 ¢ r id 0 Hr F H E z >w0w w CrU¢E u w 1.4 01 0 L a 0 fit wJwtA=Y it CWWL w 01 -1 a AwEOwXCL J IL MIJwE P > O > U u 'iZa.Za= 1-tflP0aC! CaNNNNN NNCaNNN J H U za O -j UJ U Lij r , piwL w 3 L U O UwzH L Hr¢LL a ri: 0 0 U. EO U. 0x31} -E WNPJUN z o <:>- z U toXW'il H¢ u w J 2 iczumQr wCGHcoHL E¢CL¢CLO CmOQULZ P ol� Ol P A QQ�It4TC 2.1 00.4000.0N N 1 r 1 Mhlbribi i0 P OONOO.+ON •a i Z i 91'N919 o0888o 8-z 0 1 01 oms lvmo M 00,00000V 10 1 E 3 r•10.i (ID fl) O h7 OmvOMnnP 10 w 1 ¢ i Ca 10PNN0. N ri h7 r- v ca .� o vi ¢ i 1 .i' r' to vi h7 tri LL O H ¢ w wcL CL O U UU r wu> >-j w w HHw w0 -1 z C>4 0 U L z } L wwJ Jw r ww< corm w Z =ozot;:uz IT CWWHULw A wwwIE -m¢3� JJLtowCt0UI wLDaw rr >�0mux 000 Lzw< O O Z H L H w r 0, 0 .iNMQ'0.0 a i` i` >` N I- >` P` N N N N N N N N N N N N N N N N . z >E Q ¢ IL ca O J UU Hz0 >¢ua: w wH - IX LL w NLto� IL H Z O U H g NOO OWJI�- .a }w 0) :3 3 CL } ¢ H ¢ > r r NJUrzA z to H w¢:3 ui }' }tntrnoc0) i!ww - utr, ¢wJJ }zw¢ ztoQAQHzY {t ti)HHOL+_Z0 ¢¢stX0LHZ N N N N N N N N OPPP.PPPOPP \\\ \ \\ \\ OOOOO.iCM -two .i N NNNNNNNNa .1 H .i .i vi .i .i .ei CC i ¢ i w i Y M i P I 2 �i ¢ a 1 \ i O 1 H 3 a O 1 CL ri oa \ I v i Y \ i = i U � I O 1 L L 1 � 1 ce � I L B I z EI M CL � O) 00 >I \ Iii w I u rt i wEU 1 Q jw H cc 1 CL. Ld Cry, IL _ { z O H r L H CC U t0 w A Y CL wm x z t "I w E z CL O z w U Iw- UA J & i J H J D7 ¢ r id 0 Hr F H E z >w0w w CrU¢E u w 1.4 01 0 L a 0 fit wJwtA=Y it CWWL w 01 -1 a AwEOwXCL J IL MIJwE P > O > U u 'iZa.Za= 1-tflP0aC! CaNNNNN NNCaNNN J H U za O -j UJ U Lij r , piwL w 3 L U O UwzH L Hr¢LL a ri: 0 0 U. EO U. 0x31} -E WNPJUN z o <:>- z U toXW'il H¢ u w J 2 iczumQr wCGHcoHL E¢CL¢CLO CmOQULZ P ol� Ol P A QQ�It4TC TO: FRIDLEY H.R.A. FROM: CITY OF FRIDLEY RE: BILLING FOR OPERATING EXPENSES FOR DECEMBER, 1992 AND DECEMBER 1992 ADMINISTRATIVE EXPENSES ADMINISTRATIVE BILLING: DECEMBER ADMINISTRATIVE PERSONAL SERVICES DECEMBER ADMINISTRATIVE OVERHEAD TOTAL ADMINISTRATIVE BILLING DECEMBER OPERATING EXPENSES: NOV MGMT FEE - KORDIAK MINNEGASCO - RICE PLAZA NSP - RICE PLAZA FENCE REPAIR - RICE PLAZA NSP - LAKE POINTE DEC - INSURANCE ALLOCATION DEC - INSURANCE ALLOCATION DEC - INSURANCE ALLOCATION TOTAL OPERATING EXPENSES FOR DECEMBER TOTAL EXPENDITURES 13,631.00 252.25 13,883.25 155.06 13.83 112.94 40.00 7.03 929.00 40.00 52.00 1,349.86 15,233.11 2.2 s t+ 2.3 R E V E N U E 8 (AT MEETING) rn I cis I Go O F- z W Q N 0 o� a N J a W U W 3.1 ? (o N (O Co C) O C> O O +- (D I- 0 p; O C4 r- (O 1- (o O � O co N r li Cfl N O N O Cl O Cl O N O .0 0 0 0 0 0 0 N 01 (C O O lA 6 0 pj ! CD I.. O (o O CA (p CO W. ti 1A N M N 0 0 0 0 0 0 0 p) OD co O O O O O O N O O Ci O r N W� O CO 0 CD. 0 CO 0 Cn — P- Uo r U) ch N If! O N 0 lqt Co 0 0 0 0 Of O OD O O O O O O N O CA 0 0 co r '' �> :f O CD n O w O O P- O co Go (9 CO (A r O co O O O O O M to O CD 07 O O O O r O r N 0 0 (o O p �j N I*_ co O O 0) r . - . CO r r N O O Co O O N N O C9 0 0 0 0 N N Z' tiwoo coo Ui 6 CD (o O (o I� O N N N N O � Cp CO W Z CO = W CO Q Z ccIU- -OZ_C7 z w' Q .. =YUYQza a camF -� o Z:LU Z ZCO 0zRo z p ::acYHg cn Q a � < H Q >U U-1. C7 ,Q z� � w ">2Orzaal- a0¢ O o m m u m m w 3.1 M rn 1 C c0 1 OD O H z W Q N O o� Q N Q IL w U Q ;iilw � CO tt O M O O) nj �O co sF O M t0 M r. M to ti M O_ r, 10 M r CA to r 1D Co O N O O O M LA O O CD O O O LA Lp O C5 r 6 6 0 r r N N N W Co 1- N a V- d' O V 0 0 0 O V' LA ::0 N O O O O N N 0 0 O r O 0; 0) ti O co r � O r p CO N le O W 0 a 0 0 0 M r O O CD CO O O 4ci f.: M � O co ti O r M it M N •'• O CD O O CO Cl O M LO O co O C> O O O r c0 O pj Cj lll co ti O (� .— N M O N O O O O O N I� :'•:: O CA O O O O p pi M 0 O vi O O O co 0 5: O O co O 1� r ti G O co CA O r M M co O M O O O C C a LA O V 0 0 0 0 0 'sf O m O O O (C O CA N to co O co O h ti � O M Os r N M N co CO = W Q Z '? U ~ Cn O z Q >- Q =YUYQza 0 Q H Q =`UOmmm t=om .I..- a' zmz�n 0 0 �0 V O se[YF W -g z —a pC J H < o �ZC03 a co Zm m0 }zQ aac QI— O I .. w >- < ? <:ommommm U Community Development Department u rPLANNwG DIVISION 4.1 City of Fridley DATE: December 16, 1992 TO: William Burns, City Manager FROM: Barbara Dacy, Community Development Director SUBJECT: Westminster Corporation Proposal for Senior Housing Michele and I met with representatives from Westminster Corporation, St. Williams Church, and the architects from Borman, Kroos, Pfister & Associates regarding the proposed 51 unit apartment building for very low income seniors. Westminster advised us that they-have received preliminary approval from the Department of Housing & Urban Development to receive.Section 202 funds. Because of the process and application requirements required by HUD, they anticipate initiating construction in late summer of 1993. The purpose of this memo is to review the zoning process that we discussed with them and to determine.if there are any objections from City Council. In 1989, the City Council approved for first reading the ordinance to rezone the .property to R -3, General Multiple Family Dwelling. At that time, the Council also approved a lot split (for the church to convey property to Westminster) and also a special use permit fora home for the elderly" in an R -3 district. Because the lot split and special use permit applications have expired since construction was not initiated within a year, Westminster Corporation will file new applications. The special use. permit and lot split will be considered by the .Planning Commission at its February 10, 1993, meeting. The special use permit, lot split, and second and final reading the rezoning would then be heard by the City Council at its February 22, 1993, meeting. Westminster and St. Williams will probably conduct an informational meeting for the neighborhood some time in January. Should there be any problem with this process, please let me know. BD:ls M -92 -755 TO: WILLIAM W. BURNS, CITY MANAGER FROM: RICHARD D. PRIBIM, FINANCE DIRECTOR SUBJECT: FINANCIAL STATUS OF LAKE POINTE ACQUISITION DATE: January 8, 1993 This memo is intended as an update of the events that have occurred since Council approved the General Obligation Temporary Tax Increment Issue On November 23, 1992. As planned, we closed on the Temporary Tax Increment Bond Issue on December. 14th. On December. 15th we wired $4,230,000 to Minnesota Title in order take title to the property. Since then all costs associated with the bond issue have been paid by. the proceeds of the issue and also a payment has been made to the County for the delinquent taxes. On December 23, 1992, $480,946.22 was remitted to the County for delinquent taxes owing for the years 1990, 1991 and 1992. This amount was based on the reduced market value, as determined by our Assessor, on the value of the parcels in the Lake Pointe Tax Increment District. We are currently working with Dan Clint from the County Attorney's Office to complete the ' reduction in value for 1990, 1991, and 1992. Very shortly the School Districts will receive notice on our request for reduction and have an opportunity to voice their concerns. Once this process has been finalized there may be an opportunity to abate the taxes for 1993. Below is a recap of the numbers surrounding this activity to date. Proceeds from bond issue $4,030,000.00 Principal and interest remain from last issue 735.000.00 Total Sources $4,765,000.00 Less: Land Cost $4,230,000.00 Discount to Underwriter 3,828.50 S nn sted Briggs and Morgan 21 ,50099.19 Official statement printing 1670.69 Bond Printing 911.00 MOo(V 2,300.00 Miscellaneous 417.50 Anoka County-Taxes 469,000.00 Total Uses $4,748,146.88 Balance to be placed in Debt Service Fund 16 853.12 HOUSING AND REDEVELOPMENT AUTHORITY MEETING THURSDAY, JANUARY 14, 1993 7:30 P.M. PUBLIC COPY CITY OF FRIDLEY AGENDA HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, JANUARY 14, 1993, 7:30 P.M. Location: Council Chambers Fridley Municipal Center 6431 University Avenue N.E. CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: December 10, 1992 ACTION ITEMS: CONSIDER CONCEPT APPROVAL OF FRIDLEY TOWN SQUARE DEVELOPMENT 1.1-1.4 CLAIMS AND EXPENSES INFORMATION ITEMS: RICE PLAZA UPDATE 3. 1 ST. WILLIAMS SENIOR HOUSING PROJECT UPDATE 4.1 LAKE POINTE PROPERTY UPDATE 5. 1 OTHER BUSINESS ADJOURNMENT Mibb. CITY OF FRIDLEY JOINT HOUSING & REDEVELOPMENT AUTHORITY AND CITY COUNCIL MEETING, DECEMBER 10, 1992 CALL TO ORDER: Chairperson Commers called the December 10, 1992, Housing & Redevelopment Authority minutes to order at 7:35 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, John Meyer, Duane Prairie, Jim McFarland Members Absent: None Others Present: William Burns, Executive Director of the HRA Barbara Dacy, Community Development Director Rick Pribyl, Finance Director Paul Hansen, Staff Accountant Dick Larson, Deputy Chief and Fire Marshall Pat Wolfe, Section 8 Housing Coordinator William Nee, Mayor Dennis Schneider, Councilmember Steve Billings, Councilmember Ed Fitzpatrick, Councilmember Nancy J. Jorgenson, Councilmember-at-Large Lowell Demars, Asst. Fire Chief, Columbia Hts. APPROVAL OF NOVEMBER 12, 1992, HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the November 12, 1992, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. CONTINUE DISCUSSION ON RECOMMENDED HOUSING PROGRAMS: Ms. Dacy stated that the reason for the joint meeting is to discuss two of the four recommended housing program: the rental inspection program and the single family rehab program. The City Council reviewed staff's recommendations at the end of October, and the HRA has reviewed the housing program recommendations over the last two months. Both the Council and the HRA board had specific concerns about two out of the 4-5 programs staff had recommended. HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 2 ' • Ms. Dacy stated staff is prepared to present the Council and the HRA with more information to follow up on both boards' concerns. Guestspeakers and resource people have been invited to help the HRA and Council discuss and resolve these issues. As they go through each issue, she has prepared an outline of discussion points to help the Council and HRA try to resolve their concerns. Ms. Dacy stated she would start with the rental inspection issue. The HRA had a lot specific questions about the rental inspection program. She stated staff has invited Dick Larson, Deputy Chief and Fire Marshall, and Pat Wolfe, Section 8 Housing Coordinator, to summarize their work experiences and to specifically address some of the HRA's comments. Staff has also invited Lowell Demars, an inspector from Columbia Heights, who is implementing the rental inspection program very similar to the one that staff is suggesting . for the City of Fridley. Ms. Dacy stated she has also prepared a brief memo on the City of Crystal which has initiated the same type of program. She has more information about fee schedules regarding the annual" licensing and how much it would take in fees to cover inspection costs. Ms. Dacy stated staff would like to follow up on the concerns that the Council and HRA had about what they can do in conjunction with the rental inspection program to establish a rental rehab for the multiple family owners.. Mr. Commers stated he believes there is a real fundamental issue here regarding the rental inspection program, and that is whether or not it is appropriate to give this type of responsibility to the HRA. By that, he means the fundamental authority that the City has and the fundamental responsibility to do the inspections. The Fridley HRA has never acted as an operating type of body in the past. He believed that if the City Council feels there is a high priority for the rental inspection program, then the Council should look at whether it should be responsible to fund the program and take care of it. Mr. Commers stated that in the past, the HRA has discussed whether or not, because of potential conflicts, the HRA should have a separate executive director and separate • legal counsel. As the budget has grown, the HRA has discussed whether or not they should have their own staff people. In the past, the HRA has always rejected that, but it comes down to the fundamental issue as to what is the real charge to the HRA and what is the City's real responsibility for the different functions that take place? The policing and code violations have always been the City's responsibility, as well as zoning and other types of housing- related issues. This has to be worked out irrespective of the program, the nature of the program, and how it should be designed. HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 3 Mr. Billings stated that from his perspective, he agreed with Mr. Commers. He stated this discussion would be better served if they wait until the Mayor gets to the meeting. He agrees with Mr. Commers that, fundamentally, the inspection is a function of the City rather than the HRA. If the rental inspection program is going to be done in conjunction with a rehab program, then maybe it is better done by an HRA inspector rather than a City inspector, because then the people might be more willing to go along with the program. Mr. Dick Larson stated the rental code has been around since the middle 1970 's as Ordinance 220. These are the guidelines they use for inspections. Originally, there was a person who did rental inspections. When this person left the City, the rental inspections were divided between departments. The Fire Department got the interior and the Code Enforcement Officer in the Community Development Department got the exterior. Mr. Larson stated the Fire Department gets into the buildings in the common areas of all rental and commercial properties by Fire Code. They do not go into individual apartments under Fire Code. The ordinance was generally set up to aid the tenants against unscrupulous landlords, but the Code works both directions. He has been subpoenaed to court for both tenants and landlords. Mr. Larson stated they are trying to inspect 10% of the units, but they have not had the manpower to do that. Last year, Jon Thompson from the Engineering Department was lent to the rental inspection program for the winter months. Mr. Thompson inspected about .500 units. Otherwise, the only inspections they are able to do right now is through complaints. He can get into a unit in one of three ways: . the tenant invites him in, the landlord invites him in, or with a search warrant. He has only had to get three search warrants in the last 13 years. Tenants and landlords are generally very cooperative. Mr. Larson stated that he had some information on rental inspections for the last two years. In 1991, they had a total of 4,038 licensed individual rental units in the City. In 1991, they handled 201 complaints. In looking at the complaint list, he picked out four of the top complaint apartment buildings. Out of 201 complaints, the top four owners had 48 complaints. Those four owners own 127 units which is 3. 1% of the total 4,038 units. . The 48 complaints were 24% of the total complaints. Mr. Larson stated that since Mr. Thompson has been making inspections and they have been able to be a little tougher on the landlords and tenants, in 1992, with 4,038 units, they had 137 complaints. The top four owners had 19 complaints so they dropped the total complaints down 13.8% from 1991. HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 4 Mr. Prairie asked what are the typical complaints Mr. Larson receives. Mr. Larson stated that he had received a complaint from the landlord at Springbrook where tenants had severely trashed an apartment. He had to declare the unit unfit for human habitation. He has only had to do that three times. Ms. Jorgenson asked what kind of compliance does Mr. Larson get with violations. Mr. Larson stated there are no outstanding complaints. All violations have been resolved. He follows up on all violations until they are completed. Mr. Commers stated that of the 137 complaints in 1992 and 201 complaints in 1991, how many of those complaints necessitated court action? Mr. Larson stated there have been two court actions. He stated that the judges do not understand rental codes and don't consider these violations very serious. Mr. Commers asked if these inspections also involve Section 8 inspections. Mr. Larson stated he does not do Section 8 rental inspections. Pat Wolfe does those. However, they do work together and share information with each other. Mr. Larson stated he has seen a big improvement by having a part- time inspector working four months. Councilmember Jorgenson stated Minneapolis has a special Housing Court. Did that require special legislation? Ms. Dacy stated, yes, it did. She stated it is specific to Hennepin and Ramsey Counties. When staff talked to City Prosecutor Carl Newquist, he said there would have to be a state law change in order for Anoka County to establish a housing court. Mr. Larson stated staff has discussed the license fees, and he cannot see charging the landlord with a nice building and 'who keeps it nice the same fee as the slum landlord. They should be able to penalize the poor managers and landlords so it gives them some incentive to fix up their buildings. Mr. Commers asked Mr. Larson what he believes is the main issue. Is it City-wide and is there an identifiable problem? What. is the real issue or problem of. enforcement? HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 5 Mr. Larson stated the problem is they just do not have enough man- power to get out and make the inspections. If they could inspect at least 1/4-1/2 of the total rental units every year, a lot of the minor complaints would be caught with the inspection. Mr. Meyer stated the City is getting the most complaints from the multiple family buildings. The fees should be higher for multiple family buildings than for single family buildings. Ms. Dacy stated there are two sources of information on fee schedules: 1. One source is from other communities that have recently re-evaluated their fees or are doing this program. 2. The other source is that the Finance Department and the City has hired Publicorp, Inc. , to analyze all the current charges in the City. That report should come out in January. The City Council will receive and evaluate that report. Ms. Dacy stated staff has analyzed other community fees (Bloomington, Crystal, and Brooklyn Park) in order to relate to the amount of work they are currently spending on the rental inspection program. She stated she had taken their rates and applied them to the Fridley units (single family, duplexes, triplexes, and multiples) , and came up with a potential amount to give the HRA an idea of a range. Based on the fees charged by Crystal, the highest amount Fridley would raise would be $57,310. Crystal bases their costs on a manpower analysis between the housing inspector and the clerical staff and uses the hourly rates and estimated time for inspections, followup work, correspondence writing, etc. Crystal instituted this program in January 1992. Mr. Prairie asked what Fridley currently raises in fees. Ms. Dacy stated they have currently raised $17,914. Mr. Meyer stated that the fee schedules for virtually every one of these other communities are going completely in the wrong direction. These schedules do not make any sense, and Fridley should not even think of doing anything like them. Staff is saying that most of the problems are in the multiple family dwellings. If they add in the cost of complaints, followup, etc. , and weight them, that is the way it should be done. More dollars are being charged to the smaller units then for larger units, and that does not make sense. Councilmember Schneider agreed that the sliding scale is not right. It seems like they should be able penalize those owners where there are problems. HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 6 Mr. Meyer stated one problem in doing something like the number of complaints. The owner of a building with a lot of units might have tenants who are. mad at the owner, and 50% of the complaints are spurious complaints. There is no reason why that owner should be unfairly penalized; therefore, it might revert back to analyzing the complaints and the types of units and setting the fees accordingly. Ms. Dacy stated staff is not inspecting interiors of single families or duplexes. Staff does not know the level of compliance with the City's current rental code on some of these units. It may take 2-3 inspections in order for that particular unit to come into compliance. So you still spend the same amount of time for a single family unit doing inspection and followup as you would with a larger unit, because when they get into the larger units, some of the larger complexes are going to be paying $1,500-2,000 per year. In the case of the Meadow Run Apartments, a majority of those units are in compliance, so that analysis works both ways. Ms. Dacy stated that one thing the HRA and City Council need to do is agree on an annual licensing fee, and they have to develop a schedule for the number of excessive reinspections and complaints. There should be a separate fee charge for that. Councilmember Jorgenson asked how they address the issue when there are tenants who are mad at the landlord and they continue to call in with complaints, and the City is penalizing that landlord for tenant-initiated calls. Mr. Larson stated they would have to set up some kind of tier on the severity of the violations. What they are finding is that toward the end of the month when eviction notices are given out because people haven't paid their rent, the tenants call the City and make minor complaints. Ms. Dacy stated the annual licensing fee structure staff is proposing is based to cover the manpower costs to administer the general program. A separate structure is being proposed to cover that extra cost due to the excessive complaints. Mr. Prairie asked if any of the other communities have a penalty for complaints.. Ms. Dacy stated that of the communities staff has interviewed, the answer is, no, but Crystal is evaluating it. Mr. Meyer stated in listening to Mr. Larson's testimony, it sounds like most of the problems come from a certain group, and they. should penalize or at least bring, as an absolute minimum, the problem group to the same level as the average citizen who rents out a single family house. HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 7 Councilmember Schneider stated that if this was his program, he would try to identify the 3-4 worst apartment buildings in the community on an annual basis, give them a thorough inspection, give them 6 months to make repairs, and at the end of 6 months if there is no sign of the owner making the repairs within those 6 months to a year, then the City should acquire the building and resell it to another owner. He would like to see the City take some aggressive action and concentrate on the problem areas on an annual basis, rather than spreading out their resources over 2,000 units. Mr. Commers stated they have to be careful with the distinction between what they might call the people who are moving in who don't care and run the apartments down and the vast majority of elderly income people who live in the City who can only afford the same level of apartment. They have to be careful not to exclude the seniors from housing. However, that doesn't mean the apartments should be allowed to deteriorate and not meet code. Ms. Schnabel stated the HRA has never talked about a "truth-in- housing" inspection on rental units. If, prior to the sale of any multiple housing units, there was some type of inspection program that could be implemented to assure them that these units have been improved prior to sale, that might help the HRA as opposed to the HRA buying a building and rehabilitating it themselves. Ms. Dacy stated that as of now, the other communities have only applied "truth-in-housing" to single family homes. Ms. Pat Wolfe stated it is very expensive, and that is probably why other communities are not using "truth-in-housing" for multiple units. Mr. Larson stated he did not know of anyone on City staff at this time who would have the expertise to make those kinds of inspections. Mr. Commers stated it is a good idea, though, and might be something the HRA might want to look into in the future. Ms. Dacy stated they would have to investigate how many times the multiple family properties turn over and whether that kind of program would be cost-effective. Councilmember Jorgenson stated the City Council looked at "truth- in-housing" for single family residential homes a few years ago. One of the problems they found wrong with the program is that if you have someone looking at a home, and the truth-in-housing inspector has found a lot of problems with a home, that buyer may choose to go to another community to buy the same kind of unit in the same shape for less money. So, there is a problem in how a "truth-in-housing" program would be applied. Is it going to cause particular units that are on the market for sale not to •be sold? • HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 8 • Will the prospective buyer go somewhere else, and then these empty buildings fall back upon the City or a bank? They have to take those types of things into consideration. If there are identifiable problems, it is a wonderful opportunity, for the City to offer some type of assistance to correct those problems instead of sending the prospective buyer to another community. Mr. Larson stated that out of the 4,000 units in the City last year, only 32 units changed hands. Mr. Commers thanked Mr. Larson for coming to the meeting and for the good information. Councilmember Billings stated that, regarding the fee structure, they keep talking about a new licensing fee. He believed that is the wrong approach. He believed they should have a licensing fee for a license to do business in the City of Fridley to operate a rental unit. That should be a license fee that covers the cost of issuing the license, covers the cost .of the necessary police protection, covers the cost of resident complaints, etc. Then, there should also be a certificate of occupancy for the building that is a separate fee altogether. The rental unit, whether residential, commercial, industrial, should be inspected on a periodic basis to see if it qualifies for habitation. Right now the City issues a certificate of occupancy when the buildings are built, and that' is the last time they issue a certificate of occupancy. If the unit fails the inspection, the certificate of occupancy does not get renewed. This is a way of catching the problems while they are little, problems. Mr. Commers stated that is good, but that philosophy should also be applicable to the single family units. Single family units deteriorate just as badly. They have a lot of single family homes in Fridley that do not meet code. They have to treat everyone fairly. Councilmember Billings stated the difference is that, except for about 125 out of some 7,000 homes, the owner is living on the property. With commercial property, the owner of the property may be doing business on the property but could be renting it to someone else. They could couple it with the truth-in-housing for single family and require that the house be brought up to code, because residential property is changing hands more often than single family. Ms. Schnabel agreed with Mr. Commers that they should treat everyone equally, but, secondly, she did not know how a program like that could be worked with 4,000 rental units alone. Is the certificate of occupancy going to be based on the inspection on all individual units or a general inspection of the building? What criteria would be used on rental units, and how are all those inspections going to be done in a year and followup inspections? HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 = PAGE 9 This sounds like an enormous task which is beyond the HRA's scope because they lack the manpower and the money to fund it. Councilmember Billings stated the money to fund it comes from the annual fee. Ms. Pat Wolfe stated the Section 8 program gives her an advantage in her inspections in that she can withhold money from the landlords until problems are fixed, and that is done quite frequently. She does all the inspections for Section 8 housing in Fridley. Ms. Wolfe stated she had brought along some material about the Housing Quality Standards which were developed by HUD. She had also included a list of some of the common things that cause a failed inspection. She stated that she is advocating very strongly for inspections to be done in all the units in a building. Ms. Dacy stated staff has been evaluating adopting the Housing Quality Standards as part of the Chapter 220 code. Ms. Wolfe stated that applications for Section 8 housing for one and two bedroom units were taken in August 1992, and over 4, 000 people, metro-wide, applied, so there is a real need out there. Fridley averages about 186 Section 8 units. The Section 8 housing in Fridley has declined over the years, and she feels that much of that is due to the fact that the fair market rate that HUD determines has gone up. Fridley's housing stock doesn't appeal to people anymore. Many of the buildings in Fridley are outdated and do not have the amenities as the newer buildings in Coon Rapids or Blaine. Ms. Wolfe stated that a lot of people, especially those eligible for three-bedroom units and who want to live in the northern suburbs, tend to move towards the Coon Rapids, Blaine, Anoka areas where there are new apartment buildings. Ms. Schnabel asked about how tenants are screened for Section 8, and what questions are landlords asking that determines that they get a good tenant or a bad tenant. Ms. Wolfe stated she did not know what questions are asked. She has suggested that the landlords go through a rental research company. The landlord pays a fee for the rental research company to run credit checks and past references. This has been very effective. What happens then is that the landlord charges the tenant an application fee of $15-20 to cover this cost. Depending upon how much information the landlord wants, the application fee goes up. Sometimes, just the fact that there is an application fee will screen out some tenants. HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 10 Ms. Wolfe stated that when she goes into a unit that has violations, she sees a rental license, and she wonders how the owner can have a rental license when there are so many violations. So, she agreed with Councilmember Billings that she would like to see the certificate of occupancy which tells her the building is up to code. Mr. Meyer stated he is concerned about what they are trying to do. He is hearing that the problems are the lack of screening tenants and a few unscrupulous landlords. Is a huge rental inspection program for paint-up, patch-up going to cure the tenant problem? He did not see any correlation between the two. Ms. Wolfe stated she does not refer her good tenants to certain buildings in Fridley where she knows there are problems, because she knows there are better places for them to go. Mr. McFarland stated that landlords have to be motivated to keep their buildings in good shape. If an investor cannot get a cashflow out of the unit, he is not going to put any money into the unit, and the unit will deteriorate. He did not know if using public money to help an investor keep up an income property for profit was appropriate for the HRA. Ms. Schnabel stated they are here to talk about the housing stock and part of the HRA is "redevelopment" , and they need to focus on those kind of the issues. Mr. Meyer stated that if they are trying to keep out the people. who bring in crime and trash apartments and a lot of problems could be solved somewhat by a screening program, then they should find a way to get all the landlords to do screening. It is much cheaper than hiring inspectors for a program of paint-up, patch-up. Ms. Dacy stated she agreed that the bad tenants are one part of the problem and are part of the housing issue, but the main reason the HRA and the Council are discussing this is because the housing stock is aging and there are good tenants in deferred housing maintenance units. The charge of the HRA is to try to take care of the housing units as best as possible for housing quality. A screening technique for managers is one, way to attack the tenant part of the issue, but neither the HRA nor the Council is going to be able to solve the drug problem. However, staff is suggesting some tools that can be combined and balanced to try to attack the problems and try to maintain the livability of the units. Mr. Commers stated they are also trying to get a sense of value. The HRA recognizes there are some problems, but it is just a part of the overall picture. Is it worth spending $100,000 for two inspectors to cure this 10% problem of the picture when there are a lot of other problems? Or should they take that $100,000 and make it available for those landlords who want to do something to maintain their buildings? • HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 11 Ms. Dacy stated that is why suggested has su ested some options for the HRA to consider. The HRA has discussed the 3-4 options, and staff agrees that the HRA needs to prioritize the money as best as possible. Right now Mr. Larson and Ms. Wolfe are inspection 10% of the units on a complaint basis. If they increased the inspections at least to 1,000 units, they would be getting at some of the issues on the deferred maintenance. It will not solve all of the problems, but it will attack some of them. Then, they can try to create a program to find the problem buildings and see if they can update those units. Councilmember Schneider stated that if they agree that they want the landlords to start screening tenants, then why don't they tie in something with the certificate of occupancy so that if the landlord screens tenants, the fee for inspections will be reduced. That would give the landlord an economic incentive to do the screening. Ms. Wolfe stated that something like that would be hard to track. Mayor Nee stated that if they adopt the certificate of occupancy mentioned by Councilmember Billings and enforce it if a landlord doesn't comply with the violations and shut down the unit, it might show that the City really means business. Mr. Meyer stated it is a credible idea. Ms. Schnabel stated that particularly with a high vacancy rate, it might be less of a risk of really displacing people if they can be moved into other units. Ms. Schnabel stated that regarding whether the HRA should help someone who is in the business of making money for profit, the HRA does that every time they give money to a business for improvements such as McGlynn Bakeries. It is the same concept. Ms. Dacy introduced Lowell Demars, Assistant Fire Chief for the City of Columbia Heights. Mr. Demars handed out a packet of information that included Columbia Heights' Housing Maintenance Code. Mr. Demars stated they have about 2,050-2,060 rental units in Columbia Heights. In the Fire Department, he has six full-time people, two who are obligated to the Housing Maintenance Code, and one who does Fire Code inspections. To date, they have done about 2,800-2,900 property inspections with the three people. They inspect every building in the City business-wise and industry-wise twice a year. They inspect the exterior of rental property once a year. They have divided the City into four quadrants, and they inspect one quarter of all the rental housing interior and exterior • HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 12 every year, with the exception of some of the bigger buildings with 70-80 units. With those buildings, they spot check. Most of their major units are pretty well controlled. Mr. Demars stated that a lot of the single inspections run into two, three, and four recalls until the problems are resolved. The major problems are in Grid A between 45th and 47th Avenues and Central Avenue and Johnson Street. Mr. Demars stated that in 1991, they inspected about 35% of the housing maintenance rental code inspections. In 1992, as of October 1, they have inspected every rental unit at least once. For each unit, they make an initial inspection with a 30 day period to correct the violations, they make a followup inspection after 30 days and if nothing is done, they will give the landlord another 30 days. On the third inspection, if they have not gotten compliance on every issue cited and the landlord has not appealed any of the issues, the City will assess the landlord $25 every time they come back. Most of the owners (95%) have complied, and less than 3-4% of the owners are not cooperative. Most of the owners are happy with the rental inspection program because it allows the City and the landlord to get into an apartment unit where they know or think they have problems. Mr. Demars stated they have also stressed in this program to the owners that they would like the owners to screen their tenants a little better. Most of the owners have agreed that they are going to screen their tenants better. He stated they have gone into units that are totally destroyed by the tenants. That is where the housing maintenance code comes in. They have many more problems with tenants than with the landlords. The tenants create the problems for the landlords. Mr. Demars stated that some of the things he and his staff look for with the housing maintenance code on the exterior is the condition of the structure. Every building is required to have storms and screens. At the same time they go through the unit with the Housing Maintenance Code, they go through the unit with the Fire Code. They also look for junk vehicles; they require a hard surface parking area for one vehicle per rental unit. This year, a concrete pad will be required to store all boats, trailers, etc. They check for sod, that the lawns are maintained, no weeds, just a general thorough exterior look. With the interior, they make sure that everything is up to code in the buildings. Councilmember Jorgenson asked if Columbia Heights has an annual occupancy permit. Mr. Demars stated that Columbia Heights does have an annual occupancy permit. HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 13 Mr. Demars stated that they have only taken three property owners to court over violations. One case the judge threw out because of inadequate paperwork, one case the judge threw out because he thought that the case was too trivial and that Columbia Heights has too many ordinances, and in one case the property owner was fined $500 and told his property had to come into compliance within 30 days. Mr. Demars stated he believed that because of this housing maintenance code and their inspections, they have cleaned up 75% of the problems in Columbia Heights. This has all , been accomplished in one year. Mr. Commers asked if the Fire Department inspectors work full time. Mr. Demars stated the two inspectors work 24 hour shifts. They will inspect five 8-9 hour days out of a three week period. They also work Saturday and Sunday. In a three week period, they are each putting in about 40 hours of street-time, but they are actually putting in about another 40 hours of paperwork. He stated these two people have a heavy workload, but they work hard and do an excellent job. . Councilmember Billings stated these inspectors are putting in about 200 hours every three week period, which is equivalent to about 1 1/2 persons. Mr. Meyer asked what kind of background Mr. Demars has. Mr. Demars stated he has been in the fire service for 25 years. Of those 25 years, he has put in about 14 years inspecting industrial/commercial buildings under the Fire Code. He is now the Assistant Fire Chief in Columbia Heights and he directs the housing maintenance program. He chose the people he felt were most qualified to do the job. Mayor Nee asked what type of credentials do the inspectors have. Mr. Demars stated the two inspectors are firefighter EMT's. They have an extensive inspection background. They also have an excellent knowledge of the housing maintenance code. Mr. Prairie stated that Mr. Demars had stated that he feels they have corrected 75% of the problems in Columbia Heights. What has happened to help that correction? Mr. Demars stated it is because they have actually gone through the units and pointed out to the tenants that the City and the landlord know the tenants are causing the problems and the landlord is going to start changing the tenants. HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 14 Ms. Dacy stated that the Fridley City Council and the HRA are trying to decide whether or not the City of Fridley needs a rental inspection program. Right now they make inspections only when there are complaints, and about 10% of the existing units are inspected annually. Would Mr. Demars recommend that the City of Fridley increase the amount of rental inspections? Is a rental inspection program worthwhile based on his experience? Mr. Demars stated, yes, he would recommend that the City of Fridley have a rental inspection program. He stated that if the Council and HRA want to keep the City in reasonable shape, now is the time to do it. They should not wait until they get into the situation that Columbia Heights is in. In order for the program to work, staff must have the full backing of every member of the Council and HRA. . Otherwise, it will not work and there will be nothing but problems. He would also recommend that when they are drawing up an ordinance, they must be very careful to make everything equal for all properties. Mr. Demars stated they are looking at their housing maintenance code from the standpoint that they want the appearance of the City to improve, but they will never cure the interior problems. Those are ongoing. They can just try to weed out the people who are causing the problems. Mr. Demars stated that next year, they are going to inspect the exterior of privately owned dwellings also. They have tested the U waters. The Fire Department did about five inspections this year basically on complaints from rental property owners. The property owners complied on every code violation. The only thing the housing maintenance code does not address is commercial/ industrial properties, and they are looking at doing that next year. Mr. Demars stated one of the problems in Columbia Heights is the tagging issue. In Columbia Heights, only the Fire Chief, a police officer, a community service officer, or the building inspector can issue tags. Neither he nor his inspectors can issue a tag. His advice to Fridley is to make sure they give their inspectors the right to issue tags. They are the ones seeing the problems and they should have that authority. Mr. Larson asked Mr. Demars to estimate the hours per week spent on rental housing inspections. Mr. Demars stated he would estimate about 90 man hours per week. That is his paperwork time and inspection time. That does not the include the inspectors' after hours paperwork time. Mr. Demars stated that speaking from the Fire Department's point of view, if the City of Fridley added three full-time people to its Fire Department, those three people could handle the housing maintenance code, handle all the fire calls, handle all the medical HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 15 calls, run a 24 hour medical service, and provide that much better protection for the citizens than Fridley currently has. If they hire three people for the building department, then they only have a building department and they have not added anything to the City's protection. If a city is going to put money into hiring people, then it should hire people that can do a dual purpose. Mr. Commers thanked Mr. Demars for coming and for the information on the Columbia Heights housing maintenance code. Mr. Demars and his inspectors certainly deserve a lot of credit for cleaning up a lot of the problems in Columbia Heights. Ms. Dacy asked if the HRA could come to some type of closure on the staff's recommendation and to give the staff new direction. Staff's recommendation is that the HRA and City Council institute a rental inspection at some intensity. Ms. Dacy stated Mr. Burns and she met with two apartment owners that day to test the market if the HRA set up its own program for assistance. They got some good feedback from those owners. Ms. Dacy stated staff is attacking the multiple family issues with two key issues: (1) to establish the rental inspection program; (2) to utilize HRA money for a rehabilitation program. Does the HRA agree that those two approaches attack the problem? Ms. Schnabel stated she believed that part of the problem goes back to what Mr. Commers said earlier in the meeting, and that is the philosophical approach about who is really going to be responsible for the costs. Councilmember Billings stated he is seeing the rental inspection program and the rehabilitation program as two distinct separate issues. He believed that right now they should focus on whether there should be an inspection program, and should it be the responsibility of the HRA or the City of Fridley? Councilmember Schneider stated his problem with staff's recommendation is that it is only going to solve a piece of the problem. They are hearing that there are a lot of different issues, i.e. , screening issues, inspection issues, how many inspections, education issues, etc. Mr. Burns stated the staff came prepared with information based on the discussions at prior HRA and City Council meetings. Staff's recommendation is that there be a rental inspection program and that the City pay for the rental inspection program out of the fees generated from increased rental inspection fees or from an occupancy permit or truth-in-housing. Staff also came prepared to suggest that they cut back the intensity of inspections from 2,000 units to 1,000 units and raise about $50,000 in fees from the City to cover the cost of the 1,000 units. That leaves $110,000 out of HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 16 the $500,000 that was earmarked from HRA money that can be used for a variety of purposes. The main thing would be to assist with multiple family rental rehab. Staff will be meeting with a representative from MHFA, and it does look like there are some good ways they can marry the $110,000 with MHFA money. Mr. Burns stated he liked the idea of a certificate of occupancy. They might want to reserve a little bit of money for tenant relief that comes about as a result of some kind of certificate of occupancy program. Mr. Burns stated that as far as organizing landlords and property owners, staff has met with two landlords who think that is a wonderful idea and pointed out that it has worked in Brooklyn Center. The City makes a difference. It helps to structure the landlord association and helps to get continuity that isn't there otherwise. Mr. Commers stated that based on the opinion he stated earlier about whether or not the HRA should be responsible for running a rental inspection program, a better inspection program would certainly help to solve a part of the problem. And, then maybe the HRA can do something as far as rehab or education, which are more typical HRA activities, to also try to solve part of the problem. After hearing the discussion at this meeting, it doesn't sound like Fridley has such a bad problem. Councilmember Billings stated there are a lot of tools they will need to use over the next 10 years to revitalize the City. The rental inspection program and rehabilitation program are two valuable tools. If a year from now they find that one of these tools is not working right, they can certainly look for another tool, but they have to get something going now to get things done. Councilmember Schneider stated he is not so concerned about the intensity of the number of inspections, but the application of that number. Councilmember Billings stated he agrees with Mr. Commers that the rental inspection program is a function of the City and not the HRA. Mr. Burns stated that when they met with the apartment owners, one of the things that came out of that meeting was that in restructuring the rehab program and maybe the inspection program, they want to focus in on things that are the biggest problems for 30 and 40 year old apartment buildings. The apartment owners gave staff the following list: windows, roofs, appliances, electrical systems, and heat. The apartment owners suggested that the City focus narrowly on those kinds of things. HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 17 Mr. Burns stated most of the apartment units are very highly leveraged, and they do not have a lot of room to borrow more money. So, the City's involvement in even this small list, of things is going to be expensive. They are going to be at the 50% level of participation, or maybe even more. Mr. Meyer stated after hearing the discussion at this meeting, one of the things he learned is that nothing the City could do with the inspection program is going to change the tenants, and the tenants appear to be 95% of the problem. The only thing that is going to help the tenant situation is the screening issue. Mr. Meyer stated the City currently has an inspection program. He is also hearing that there doesn't appear to be a big problem. The City has received 250 complaints from a small number of buildings. Why can't they take the current inspection effort and concentrate on cleaning up the mess in these areas with better judicial action? Mr. Meyer stated that it seems there are life safety things that should be looked at harder than broken windows. Maybe they should take some of the resources they have and redirect them, and then get harder enforcement. Mr. Meyer stated he is a little puzzled to know where the City's action and the HRA's action using public monies can be used to just focus on rental property. What about the other properties which are deteriorating? Mr. Demars said they are going to be doing that in Columbia Heights. Councilmember Jorgenson asked about vacant single family residential HUD property which sometimes sits vacant up to a year. Maybe they could acquire some of those homes, rehab them, and sell them to low and moderate income families through something like the HOME program. Ms. Dacy stated there are about 1-2 vacant HUD homes at this time. The particular aspect that Councilmember Jorgenson is talking about is part of the scattered site acquisition component on which staff has recommended the HRA spend $100, 000. Ms. Dacy stated she believed Mr. Demars was saying that Columbia Heights starting doing these inspections at a time when the housing stock was getting a little far behind them. Staff is just trying to say that they have concerns that with the inspections that are occurring now at the existing level, staff feels the City will start to fall behind in the early 1990's and by the end of the decade they will be even further behind. That is basically the reason for trying to increase the rental inspections now. Mr. Meyer stated he has the concern of creating a patch-up, paint- up police force in the whole City. • r HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 18 Ms. Schnabel stated the City already has a housing maintenance code that can be enforced which applies to single family as well as multiple housing. She did not believe that is a police unit enforcement of a code. That is just helping the neighborhoods keep their properties maintained and their values up. Mr. Burns stated that staff is also recommending that Chapter 220, the current rental inspection code, be upgraded. Ms. Dacy stated the Council and HRA have a lot of questions about income issues and financing issues that should probably be discussed at another meeting. Mr. Commers stated that in terms of a closure, he believed the HRA had no objection with the City upgrading the inspection program. As far as the HRA is concerned, they are willing to look at programs. Maybe there are low interest loans the HRA might be willing to make to put people into some properties. Councilmember Billings stated he wants to take another look at the inspection process. They either need to have an inspection program or money, and maybe they have to do a little of both. They are going to have to work with the building owners, the property managers, and the tenants and do a tremendous amount of education. They also need to do something similar for the single family as well so it is demonstrated that the City is doing something city- , wide. The HRA and City Council agreed to continue discussion on the housing issue on Saturday, January 9, 1993, at 10:00 a.m. 2. CONSIDER APPROVAL OF CONTRACT WITH CASSERLY LAW OFFICE, P.A. : MOTION by Mr. Prairie, seconded by Mr. McFarland, to approve the contract with Casserly Law Office, P.A. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. CONSIDERATION OF ENGAGEMENT AGREEMENT FOR THE AUDIT ACCOUNTING SERVICES FOR THE FRIDLEY HRA: MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the Engagement Agreement with Tautges, Redpath & Co. , Ltd. , for the audit accounting services for the Fridley HRA. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. . ' HOUSING & REDEVELOPMENT AUTHORITY MTG. , DECEMBER 10, 1992 - PAGE 19 4. CLAIMS AND EXPENSES: a. Check Register (2266-2273) MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the check register dated December 4, 1992. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. RICE PLAZA UPDATE: Information item only. ADJOURNMENT: MOTION byMr. McFarland, adjourn the seconded by Ms. Schnabel, to � meeting. Upon a voice vote, all voting aye, Chairprten Commers declared the motion carried and the December 10, 1992, Housing and Redevelopment Authority meeting adjourned at 11:15 p.m. Respectfully su mitted, Ly a Saba R ording Secretary >i ' R 1 612 334 3382 612-334-3382 CASSERLYMOLZAHNFLINT 907 P02-05 JAN 07' 93 12: 52 1.1 Casserly Molzahn & Associates, Inc. 215 South 11th Street, Suite 300 • Minneapolis • Minnesota 55403 Office (612) 342-2277 • Fax (612) 332-4765 MEMORANDUM TO: City of Fridley BRA Attention: William Burns, City Manager Barbara Dacy, Development Director FROM: James R. Casserly Mary E. Molzahn I DATE: January 7, 1993 RE: Wagner Project After some weeks of discussions on the above project it is our understanding that only two unresolved issues remain. These issues include the amount of the HRA assistance and the timing of the assistance. The BRA had previously indicated a willingness to provide $250, 000 of assistance and City Council members have indicated that they view this amount as a maximum number. Lowell Wagner has indicated that due to the very stringent lending requirements he and his partner are already making a cash investment in the project in excess of $325, 000. This is in addition to the development fee and overhead costs of approximately $275,000 which is being contributed to the project. I have explained to Mr. Wagner the City's position, but he may wish to seek an • increase in the Authority assistance to $300, 000. The issue of the timing of the BRA investment in the project is more complicated. The construction lender is demanding that all equity by the partners and the HRA be provided at the time the loan is closed. Over the last several years the IRA has normally made its contribution to a project at the time a certificate of completion was issued. This makes the HRA very secure since it has the "last money" in the project. However, it is not unusual for the HRA to the have the "first money" in a project_ This is exactly what is occurring in the Southwest Quadrant and the Lake Pointe sites. In the Wagner project the HRA is being asked to invest its money simultaneously with the Developers. There are several mechanisms which the HRA can employ to secure its investment including: 612 334 3382 612-334-3382 CASSERLYMOLZAHNFLINT 907 P03i0S JAN 07' 93 12: S3 1.2 Page 2 City of Fridley HRA January 7, 1993 1 . Partnership guarantee. 2. Personal guarantees. 3. Guaranteed construction contracts. 4. Preleasing requirements. 5. A right of reverter. 6. Lender cooperation. The HRA would certainly not extend its funds unless the lender had made a firm commitment to finance the project. These details can certainly be worked out with any potential lender. The right of reverter mentioned above may be too cumbersome. If the property were not developed, it would revert to the HRA. However, this right of reversion would be subordinate to the construction mortgage. The security it offers may be "illusionary but it is worth mentioning. 4 Rarely is there a riskless project, but the HRA can achieve a substantial level of comfort that the project will be completed and tax increment generated. JRC,MEM/db 612 334 3382 612-334-3382 CASSERLYMOLZAHNFLINT 907 PO4/05 JAN 07' 93 12: 53 • ' 1.30 A-Alibtv---- :TENS CITY OF FRIDLEY, MINNESOTA �� 27-Oct-92 65TH & UNIVERSITY AVENUE - WAGNER PROJECT/10,000 AUTO SITE PORTION OF PROJECT LOCATED WITHIN EXISTING CENTER CITY REDEVELOPMENT TIF DISTRICT ONLY ORIGINAL ESTIMATED CAPTURED ESTIMATED LESS¢ AVAILABLE PRESENT VALUE ANALYSIS / OF TAX TAX TAX TAX ADMIN TAX SEMI ANNUAL CUMULATIVE YEARS DATE CAPACITY CAPACITY CAPACITY INCREMENT EXPENSES INCREMENT BALANCE BALANCE ____ 0.0 6 / 1993 12,766 12,766 0 �O 0 O__- _-O-_Y O 0.5 12 / 1993 12,766 12,766 0 0 0 0 0 0 1.0 6 / 1994 12,766 60,821 48,055 0 0 0 0 1.5 12 / 1994 12.766 60,821 48.055 0 0 0 0 0 0 2.0 6 / 1995 12.766 60,821 48.055 24,437 1,222 23,215 19,467 19.467\ 2.5 12 / 1995 12,766 60,821 48,055 24,437 1,222 23.215 18,629 38.096 3.0 6 / 1996 12,766 60,821 48,055 24,437 1,222 23,215 17.827 55,923 3.5 12 / 1996 12,766 60,821 48.055 24,437 1.222 23,215 17,059 72,982 4.0 6 / 1997 12,766 60,821 48.055 24,437 1.222 23.215 16.324 89,306 4.5 12 / 1997 12,766 60.821 48,055 24.437 1,222 23,215 15,621 104.928 1` 5.0 6 / 1998 12,766 60.821 48,055 24,437 1.222 23,215 14.949 119.877 P. "I 5,5 12 / 1998 12.766 60.821 48,055 24,437 1.222 23,215 14.305 134,182 6.0 6 / 1999 12.766 60.821 48,055 24,437 1,222 23.215 13,689 147,871 6.5 12 / 1999 12.766 60,821 48.055 24,437 1.222 23,215 13,100 160,970 irj) 7.0 6 / 2000 12,766 60,821 48,055 24,437 1,222 23.215 12,535 173,506 ,-------- 7.5 12 / 2000 12,766 60,821 48,055 24,437 1,222 23,215 11,996 185.501 8.0 6 / 2001 12.766 60,821 48.055 24,437 1,222 23,215 11,479 196.980 8.5 12 / 2001 12,766 60.821 48.055 24.437 1,222 23,215 10,985 207,965 9.0 6 / 2002 12,766 60,821 48,055 24,437 1,222 23,215 10.512 218,477 9.5 12 / 2002 12,766 60,821 48.055 24,437. 1,222 23,215 10,059 228,536 10.0 6 / 2003 12,766 60,821 48,055 24.437 1,222 23,215 9.626 238,162 10.5 12 / 2003 12,766 60,821 48.055 24,437 1.222 23,215 9,211 247,373 11.0 6 / 2004 12,766 60,821 48,055 24.437 1,222 23,215 8,815 256,188 11.5 12 / 2004 72.766 60,821 48,055 24.437 1,222 23,215 8.435 264,623 12.0 6 / 2005 12.766 60,821 48.055 24,437 1,222 23,215 8,072 272.695 12.5 12 / 2005 12.766 60.821 48,055 24,437 1,222 23,215 7.724 280.420 13.0 6 / 2006 12.766 60,821 48.055 24,437 1.222 23.215 7,392 287.811 3.5 12 / 2006 12.766 60,821 48.055 24.437 1.222 23,215 7.073 294,885 i 4.0 6 / 2007 12.766 60,821 48,055 24,437 1.222 23,215 6,769 301,654 4_5 12 / 2007 12,766 60,821 48.055 24,43 1, . 15 5.0 6 / 2008 12,766 60,821 48,055 24.437 1,222 23,215 6,198 314.329 5.5 12 / 2008 12.766 60.821 48,055 24.437 1.222: 23,215 5,931 320,261 6.0 -_Y 6 / 2009 12.766 60,821 48.055 24.437 1.222 23,215 5.676 325.937 r ' 708,668 35.433 673.235 325,937 325.937 ,s,ca._swas_r__s==sas�imWM .,ysamma == ;.r.mra =- aa.er=== so0rae==_cao81MMC -a MOSIM0uz4 4110Mn=c=cRa0e.es.a..r,a__rr,a==i1WO MU= CASSERLY MOLZAHN & ASSOCIATES 612 334 3382 612-334-3382 CASSERLYMOLZAHNFLINT 90?. P05.--05 JAN 0?.' 93 12: 54 1.4 TENS CITY OF FRIDLEY, MINNESOTA 27-Oct-92 ASSUMPTIONS ORIGINAL MARKET VALUE PAY 1993 312,300 LAND 220.500 BUILDING 91,800 ORIGINAL TAX CAPACITY PAY 1992 12.766 ESTIMATED MARKET VALUE 1,706.437 ESTIMATED TAX CAPACITY 3.00% 4.60% 76,988 ESTIMATED TAXES PAY 1995 78,300 SQUARE FEET 26,100 TAXES/SQUARE FOOT 3.00 CONSTRUCTION 1993 VALUATION 1994 TAXES PAYABLE 199$ REDEVELOPMENT DISTRICT PORTION 79.E INFLATION o.000z TAX RATE PAY 1992 1.01704 AOMIN EXPENSES 5.00% PV RATE 6/93 9.00% SOURCES & USES SOURCES: BONDS OF 1993 325.937 TOTAL SOURCES 325.937 USES: LEGAL/FINANCIAL/DISCOUNT 5.001 16,297 SITE IMPROVEMENTS 300,000 • TOTAL USES 316,297 SURPLUS/(SHORTFALL) 9,640 CASSERLY MOLZAHN & ASSOCIATES Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: January 14, 1993 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Request to Install U.S. West Overhead Lines Underground as Part of Mississippi Street Improvement Project I have been notified by Scott Erickson, Assistant Public Works Director that NSP has finished relocating their overhead power lines underground along Mississippi Street. There are three poles located north of Mississippi Street along the west side of University Avenue (and along the east side of the Holly Shopping Center) which contain both NSP and U.S. West cables. The NSP lines have been removed; however, the U.S. West lines are not part of the NSP contract for removal. This is to request that the HRA authorize staff to execute a contract with U.S. West to remove the cable and the three poles at a cost not to exceed $5,214.00. The anticipated budget for the Mississippi Street improvement project included the following: Roadway and corridor improvement costs - $530,000 NSP electrical lines - $105, 000 The costs to date for each of these program components are as follows: Roadway and corridor improvement costs - $250,055.35 plus MnDOT charges and engineering costs NSP electrical lines - $115,000.00 $365,055.35 The expenditures are well within the anticipated budget amount, and the addition of the U.S. West contract will not adversely affect the budget expenses for this project. Staff recommends that the HRA pass a motion to authorize staff to execute a contract with U.S. West to remove the overhead poles on University Avenue. BD:ls M-93-21 Engineering N Sewer Y Water O Parks O Streets 0—U Maintenance W CC CO = a MEMORANDUM TO: Barb Dacy, Community Development Director PW93-016 FROM: Scott Erickson, Asst. Public Works Director DATE: January 8, 1993 SUBJECT: University Avenue/Mississippi Street Power Pole Removal NSP has finished relocating their power line underground along Mississippi Street A few of the power poles have street lighting on them and will remain until the new street lighting is installed. There are three poles located north of Mississippi Street along the west side of University Avenue (See Map) which contained both NSP and US West cables. NSP has relocated their power lines from these poles. These three poles are actually owned by US West and were not part of the NSP contract for removal. I recently spoke with Al Rosendahl of US West to see if they would relocate their cable underground and remove the poles. He stated that US West would relocate their cable and remove the three poles north of Mississippi for a cost of $5,214.00. If the HRA would like to have US West perform this work, it will be necessary to enter into a contract with them for the negotiated price of $5,214.00. If you require any additional information, let me know. 171 L _ _ .: _ • 261 ` .• I .+ I • i- I OO wi 0 CI CP C>PA CA i- I i')Ill Ll0aCD 0' • Z I OOCi00aOCi 'O Z I Ci�'OCi0a0 '0 O I 041CD00CS0'0 O 0 1 Oi,astMO M E I '@ CS 41 O O O 0 Q '0 E I CA 0.-03 i9 0 ill O Q I OCOcrca PI1.1410' '0 Ui Q E})i CA Q 1 M 1.1- cr PA 0 01 <E i <+!P...41 47 Ill 41 CI 0 a .-t Q I i a C '0 I a a I i i t i t t i i I i 1 I i • t 1 i t i 1 I i ' 1 W * ! J Z Z J 1 H J i I 0 H C II " Q ii) OD CQ O I- I F' ia.i W iL O t Z O . U tr U I- i `) H i- r- ! NNH H :-. W 1 I H E Z W W > > .JW i i >W W LiA 00L it C O i i'UCE 0 H H W W 0 -IZ i Li W Z • > > C, L•I) Q i I i^: u')>.G > C r LLitu! J JLLI F L I 1 iLJLeiU3iitt I Z 01 Cil < CLI0)J W i Z I L U)W C- LI t O t Z i- Z I W C t- i 0 1 Z 01 E i- I H I ' JOZO W WZ C i H 1 ,- 'OsZH Q I- i QCIiHUi=W A I F• i WQHQW i t 'v'''...'.• C 0.3 ECC) Z ti i EL . 7L+DIL..CL>- i H W W Wt- Lnr3 I 1-4 i AWLS)WXQ . i tit -I1 Li- 0)Wit0CD i i_ i JWJW3 i U W it_ 7:tW U ' I i En I- I•- > DW X i 0) i 0>C> ..L i W UUOZIXZ:DQ ; W i cis OitOW H A C0Z ;--Li I. A I .:ZS:-ZA2 it it Q i i w• ] W 1 i >- Ci i >.. M i i A i O' i I A N. i Z N. Z c i i C Cl Q •. I t Ni ; AO A P; ! O a ' i M I I CC O i YCC t A 0 .-t04M �4=`0 IX O I IC CC I i-0) a0.-. CA W I- i U W i `Gi- t i� t t W r i U W I ;!-t.t"•�c.co EL , W Z. t C•i Ci Ci C•i :'Ci Ci Ci 0- I W ai , 14 C4• CiMPS CA i 2E i CINCiriC1C4IN Ci M ; a:a: i C'ti C CiriC! } O' I O 7 > A i U Z i Al \ i Z En o in a i J t'; i W i r• ai t • i I I E I U EI I O 0 i N • CC i I d ,W C W I i 1 i i i 1 > E 1 i 4-a i :, U I 1 • CL_ C 11 ! i �A A O ,-,I i t- W ii " i O i- O i �J 1 U_ U `T i i > C LI 1 i I- ^ , V `' i z itZ i I >Z et . 'tL_W 1.0(00 ~ "'j 1 I Ou. W 3 i a t_ U v -ZU i i LL U O i I W H Z 0)0 PA<E i U W Z H i rla_ _.Q0't-t W i i ji- Qir- I COLLOwOJWCt i ' ELnL9ia_O i t O i- Ca J U I- i I O CC 0 W .G >•W N7I- I i Z .GV > I- I 3hI-WO a-+>- 1 I O E3I- Q } I W I >- C H 'CC> I-I- >- i W I UY QHI- i- i E I 1'4 JUI-- ZA Z I- 1 Z 1 L'PZJUtTI H I Q t E))H W CD CC i Z i L^ r ^ I-i-O it i Z i Z U C>- ^Z PO DI ; _I>- >- CO CI 0 0 A O I <I J>- CL ' 2 i i' i ^ V tya i;.t - L9 CDif) I • it 1 U ^U)re W'W F ; O I QWJJ>- ZWQ - I- O • t-P WJ2 0' 7 1 A ; ZEIAAAHZY cr. 7 Ay i Ci.' 00AI- 0 Q i Z I CC G?H H O CC Z O 0 Q t W CL I-•to 1-1 it W i QQYiLO �HZ W I EQitQitO •V-t Z 1 > 1 Milli-LED/EC 14 Z t > 1 CXiCL1•UiiZ W ; t W i E ; I E t O)JW O0> E W t E W I 't • L9 it i Oit A i CiCiPACAPAPiPiCi A 1 ; MMMMPOi9 WEta I OSO' Os.CSCSCSO'0' ill EL9 I 1 EAO' O'PPCr, LC Q Z ; Y W t N. N. N. N. \ \ N.N. it Q Z i Y W I N. N. N.\N. \ QCCI-I 1 UI•- I OOOOOacM QCtM I C)1.- i QC'aa'c. p' doN i WQ 1 +4.4 .4a.4aaN C3L9O I WQ I .4.4.444.r+4 W 0 7 i 2 A i N. \ N. N. \ \N.N. W O 7 12 A i \\ \\\\ CCCtO I U I C4MCACAMNC7C4 CCCC0 I U 1 .4.4.4.4. .4 ' iL ii 2 I 1 .i ••t a•4.+ a.i.i CL tL 2 I i • of (?.K,., i8,. ..,.,.. .. .a ,. ...i.............Z .......:ib 2 .2 • TO: FRIDLEY H.R.A. FROM: CITY OF FRIDLEY RE: BILLING FOR OPERATING EXPENSES FOR DECEMBER, 1992 AND DECEMBER 1992 ADMINISTRATIVE EXPENSES ADMINISTRATIVE BIWNG: DECEMBER ADMINISTRATIVE PERSONAL SERVICES 13,631.00 DECEMBER ADMINISTRATIVE OVERHEAD 252.25 TOTAL ADMINISTRATIVE BILLING 13,883.25 DECEMBER OPERATING EXPENSES: NOV MGMT FEE - KORDIAK 155.06 MINNEGASCO - RICE PLAZA 13.83 NSP - RICE PLAZA 112.94 FENCE REPAIR - RICE PLAZA 40.00 NSP - LAKE POINTE 7.03 DEC- INSURANCE ALLOCATION 929.00 DEC - INSURANCE ALLOCATION 40.00 DEC - INSURANCE ALLOCATION 52.00 TOTAL OPERATING EXPENSES FOR DECEMBER 1,349.86 TOTAL EXPENDITURES 15,233.11 2.3 REVENUES (AT MEETING) 1 r a ' W A 0 O . CH • W a. j 0 z H I- C-) i -F) i I U . I i E I i �. Ui i OCC I i I i 3. W LI W W W W G F- Z U ! ! HLi L L.CC Ct iL HZ A W Z I i J L.iC i!cc CC CC L J W>- Z CC F- I-1 i I W •7-.77 W LZ 7 Z Y YL I Z I A5UUU000A I- !L OH ZZZC_ t O i >la.Z07W Z W CO CCC i H i LIWuWWWWW0OWWLI-HAA�„' :wcDD i- 1 C CC L.CC LL CCLYCLZ CCCO ZL 003 0 u. j UUUUUU000 LII-H Cy,Y O CO I-I-i-O H I ZZZZZZZZZ W Di-00) W 3C00003 i L t H H H H H H H H H Si (j) W N SI W W W i UI 7W U3 LLUACZAL CO i X X X X 5C X X X X J CC 0 LI c a U O W H H H 0 I W i C CC CCCCCC HHu_N(LC& =CL LLLT A I r1-I-i-i-1-I-I-I-IL 3 J CO 7 N CA L N(l)LL IL IL N. I i 1 i I t- i I i CL I !_i`-C .i 40 0 0(O PI CO CP O O N N C:O O ON PI M HZ t1P iv?CCO 43PM1OOW(DPOON0aMOO 7 .-4.+ C1 C! W 7 . . . . . 4 • . . . . . . . . . . . . . . . •0 . . i UO i Civa1PNNONOGMMV) O 0 is- yw I-I WS N a C4N 1M 0,a CI O O ,ON NV 0 CON CW00 NN J CC C0.iM.i07.iOaDMI- O 7NNMN7P0.0 PP t I I-- I I Ct.4a 7 03 CI N P a 1N H .i 0 C 0r.3 O Os N IP1 N C4 CO 0 443 7*77.i .i P NI7.7 CO CO . 14 I I CO .i•.r F C I ) ti.4 • Lt I U W j f CI - t Y W O A I Z A j 00000000000000000000000 Z. C j C 0 ! 0 58 O A O O O O O O O O O 0 0 0 0 0 O O O 0 A I- i S U i W J) i i i li) W I 1 00000000000000000000000 C J I i 00000000000000000000000 . J ,. t ' I ! i I i I I I I I i I i I i i I I I I i I 7 ^ W I 00000000000O0.40.- 00OOOO.i AU W i N.:.i.I.4.+.4.4.IN 0N.I.0.4 0(4.4.40OO N W J I- . . . . . . . . . . . . . . . . . . . . . . . rr C A C .+.+-+-+•+-+.•4I.a.+NVC:.1C4NC1NN. 77VC1 WU WJ Z U)W .I.1.+.+.4.+.+.4.I.00,0NI 4343.04)4)43000•O i- L7 3A MMMMMMMMMM.iMMMMMMMM.i•r.iM ZJ WU O L ! I I I I I I I I I 1 1 I 1 I I 1 I I I I I I W C J C.)3 00 0 00000000000000000000 I- Z Z <IC U Z I 00000000000000000000000 J O W 0 C I N.i.iMa•oOIPaOO.iN.iMM.iPNOOOP CI- 1 M M M M M M M M M O O M M M M M M M M O O O M I- 1-I- i I ! i ! I I ! I ! I I !' I I I I I ! I ! ! t I O.i W Z Z W f O 0 0 O O 0 0 0 0 0.i O O 0 0 0 0 0 0.i.•I.•I O I-•67 U 7 7 U ! •O•O•O•O•O•O•O •O C)•0 40 40 40 40 40 40 40 O O O•0 Z O C)Z i f NCINNNNN N N C1 is-NNNC4NCAC4Cd1-*•PCJ O C LiCI0WL ! L Z W 12 W I I-UtLUUtL ' ZQ C M Q Q N US)A 06 PSA FF-- L • 41 0 C1 I F- • 7 i N C I I M PI M M M M M M M M M M M M M M M M M M M M M O i P 0.0,0,Q P 0.0,Os 0,0,\ OOs 00, 0+ I- W \\\\\\p CC\N\C \ W I- I CJ C1 C4 C1 N N CA CC4 J N J N Cd N N CI N N Cd C•1 C4 C j .i H.i iI.i.i.i.i M.i.i M.i.i.i H.i N.i M H H.4 CO O. A \\\\\\\\\\\\\\\\\\\\\\\ P O .i.i.1.i.i.i.i.i..i.i.i.1.i.i.i.i.i.i.I.i.i.i N N. • rn 4 N>-. \.I W .I M A LW . 1...1 L I I A WZt7 I- ' L C Z O. ' C L H H . CL t9N W0 W O7 UZ OOOOOOOOO.-NMMMMMal•ONO)PN LLO ill i 00000N00000 0 0000 o00067030 ii i CC I CO CAOOOCOCDNCAW CO CO CO 03 CO CO CO CO CO CO 03 CO 0003 1 a CO rn cI • 3.y 1 O • CO O O O O O O N N kii.iii CO O O O O O , p tit CD CD O O O CO O C7; 6 z N co 0 0 ' N. 0) N. CO I,- CO CI) N. 0 O N 7 • — v CC) N • <: 0 N Co O O O O N 0 0 CO O O O O O Cr) Q) '! O CO O O IO O O 6 -itc co O O CO N CO 0) co N Cr) N CA O O O O O O 0) co "'"". C7 CA O O O O O N In �. co O CDO CD CV O r N IT CC) O O Co .— CO IO CV) Cr) CO CO CA r •— IO 0) 4 CV A N O 'ct O O O O O et CA CD CO Co 0 0 Co 0 r CO CMCDCoCoLj . tD 2 O It CO a O a O My; ,^ r- O Ch O Co O O O CO If) O CO CO 0 0 0 CD . .it di O .— (NIO O CD O p uj CO 0) N. CD N. W: CM N. CO 0) O O 0) ' CO N O Co O Co O CM CM Y>`:ii O CO 0 0 0 0 Cr) CO Z: N O O CO O 6 6 < N. N. O N. CM N CO CO CD 0 N C\l U I Z W W I- Z Cl) • cc M = W Q Z N ". m O m F— Q >- Q gN Z CC eri Q 1 . U O 0) m CO H M •ra N f"'' Z Z cr Z m Z O O < Q W Y O Z U J F- n, Zoc7c') Qa ~ m Q m w }W — CC a CC O w U ::::i: = 0 } Z < < I- E- ›- E 0 r m 6 m cr u) co rn c6 to CM 10 Co O O O CO O {r] N. (O co a O O 10 u) 4 to 4 O to O a) nj (.D (0 O (•) CO CO CO (O f. U) O f- U) co 0 ,- o co . (o 0 o CV o o 0 CO to C. CO O O O 1- {p 1() is: 0 0 0 0 0 .— N cm lt!_ OD N cc O •ct o 0 o O d' 1C) Co CV 0 0 0 O N C) O .— 0 0 0 O Cj O) O O co 0 (O t- r- co Z>: N (O O O O O O CO O CO O O O CO CO CO rs F+«< O CM O O CD O (O ca ti O CO d O O CO O O O Co O CO LC) 0 CO O O O O O co O O CO O O O (O O Cj nj r W r` co N. O r CV O C) co ?: O CV O O O Co O N r O C) O O O O O 0) CO O co O O O (O O Cj C J Q:: O) O O ti rs r- O F- O CO 0 C7 (O CO O CO O O o 0 0 CO 10 O �t O O O O O st O O (D O Cj (‘j 10 0 0 - C) CO CO 1` N. O O CV . CO CV CO F- W W Z O cr W Z_ CV M U CO I— Q > C) 111 CC E- OJ Z C3 O Z = Y U Y Q Z a Q U O cn CO P. M N ' Z Z Z co Z O O a U Z W O W O Z jY <cr - M — a W W: �_ Z (A Z cc cc O W U I O >- < Q <` 0 I M 0 CO CC C) • fl I Community Development Department PANG DIVISION 4. 1 City of Fridley DATE: December 16, 1992 TO: William Burns, City Manager FROM: Barbara Dacy, Community Development Director SUBJECT: Westminster Corporation Proposal for Senior Housing Michele and I met with representatives from Westminster Corporation, St. Williams Church, and the architects from Borman, Kroos, Pfister & Associates regarding the proposed 51 unit apartment building for very low income seniors. Westminster advised us that they have received preliminary approval from the Department of Housing & Urban Development to receive Section 202 funds. Because of the process and application requirements required by HUD, they anticipate initiating construction in late summer of 1993. The purpose of this memo is to review the zoning process that we discussed with them and to determine if there are any objections from City Council. In 1989, the City Council approved for first reading the ordinance to rezone the property to R-3, General Multiple Family Dwelling. At that time, the Council also approved a lot split (for the church to convey property to Westminster) and also a special use permit for a "home for the elderly" in an R-3 district. Because the lot split and special use permit applications have expired since construction was not initiated within a year, Westminster Corporation will file new applications. The special use permit and lot split will be considered by the Planning Commission at its February 10, 1993, meeting. The special use permit, lot split, and second and final reading the rezoning would then be heard by the City Council at its February 22, 1993, meeting. Westminster and St. Williams will probably conduct an informational meeting for the neighborhood some time in January. Should there be any problem with this process, please let me know. BD: ls M-92-755 CI�ARD )tilt P TO: WILLIAM W. BURNS, CITY MANAGER FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR SUBJECT: FINANCIAL STATUS OF LAKE POINTE ACQUISITION DATE: January 8, 1993 This memo is intended as an update of the events that have occurred since Council approved the General Obligation Temporary Tax Increment Issue On November 23, 1992. As planned, we closed on the Temporary Tax Increment Bond Issue on December 14th. On December. 15th we wired $4,230,000 to Minnesota Title in order take title to the property. Since then all costs associated with the bond issue have been paid by the proceeds of the issue and also a payment has been made to the County for the delinquent taxes. On December 23, 1992, $480,946.22 was remitted to the County for delinquent taxes owing for the years 1990, 1991 and 1992. This amount was based on the reduced market value, as determined by our Assessor, on the value of the parcels in the Lake Pointe Tax Increment District. We are currently working with Dan Clint from the County Attorney's Office to complete the reduction in value for 1990, 1991, and .1992. Very shortly the School Districts will receive notice on our request for reduction and have an opportunity to voice their concerns. Once this process has been finalized there may be an opportunity to abate the taxes for 1993. Below is a recap of the numbers surrounding this activity to date. Proceeds from bond issue $4,030,000.00 Principal and interest remain from last issue 735,000.00 Total Sources $4,765,000.00 Less: Land Cost $4,230,000.00 Discount to Underwriter 3,828.50 • Springsted 18,500.00 Briggs and Morgan 21,509.19 Official statement printing 1670.69 Bond Printing 921.00 Moody' 2,300.00 Miscellaneous 417.50 Anoka County-Taxes 469.000.00 Total Uses $4,748,146.88 Balance to be placed in Debt Service Fund $16,853.12 a