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HRA 08/12/1993 CANCL - 6335t; �� � 'a�' .,N x C . � �� ��' 3 ^� u .� � d ` � _ .: 4 n i + � e y. � � a 5 t .. s: ..: � '. � �. ,'. � � f � '�.: ':i ? .. ... .. � _.. �i .,�. y '� N' 4.r � � ." - � ., -.� ySSF � ` _ � � � � CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, AUGUST 12, 1993, 7:30 P.M. Location: Council Chambers Fridley Municipal Center CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: July 8, 1993 ACTION ITEMS: CONSIDER SETTLEMENT AGREEMENT WITH DON FITCH. . . . . . CONSIDER LEASEHOLD AGREEMENT FRIDLEY PLAZA OFFICE BUILDING . . . . . . . . . . . . 2.1 -2.13 CONSIDER SCHOOL DISTRICT TURNBACK AGREEMENTS . . . . . 3.1 -3.4 CLAIMS AND EXPENSES . . . . . . . . . . . . . . . . . . 4.1 -4.3 INFORMATION ITEMS: ECO FINISHING, INC., UPDATE . . . . . . . . . . . . . . 5.1 RICE PLAZA UPDATE . . . . . . . . . . . . . . . . . . . 6.1 -6.4 MISSISSIPPI STREET UPDATE . . . . . . . . . . . . . . . 7.1 HOUSING PROGRAM STATUS . . . . . . . . . . . . . . . . . 8.1 -8.3 FRIDLEY TOWN SQUARE UPDATE . . . . . . . . . . . . . . . 9.1 OTHER BUSINESS ADJOURNMENT CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 8, 1993 CALL TO ORDER: Chairperson Commers called the July 8, 1993, Housing and Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, John Meyer, Duane Prairie, Jim McFarland Members Absent: None Others Present: William Burns, Director of HRA Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator Paul Hansen, Staff Accountant Jim Casserly, Consultant Chuck Tuchfarber, NuSports Systems, Inc. Pat Pelstring, Business Development Services Arland Breyer, Cinnamon Skins Terrie Mau, Cinnamon Skins APPROVAL OF MAY 20. 1993, HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION by Mr. McFarland, seconded by Mr. Prairie, to approve the May 20, 1993, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. MEMO ON REQUEST FOR ASSISTANCE FOR SPORTS SPREE IN MOORE LAKE COMMONS: Ms. Dacy stated Sports Spree is an indoor family entertainment center which is proposed to be located in the former Country Club Market tenant space in Moore Lake Commons Shopping Center located on the east side of Highway 65 and north of East Moore Lake Drive. The total project cost to locate Sports Spree in that tenant space is $900,000. Ms. Dacy stated that in the correspondence dated July 2, 1993, the petitioner, NuSports, has obtained commitments from private investors and a bank loan leaving a gap of $80,000. The petitioner is requesting a $50,000 loan from the HRA, and the remaining $30,000 would be raised from private investors. The proposed term It HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 8, 1993 PAGE 2 of the loan suggested by the petitioner is ten years at an interest rate 7.5 %. Ms. Dacy stated the staff is pleased to have this use in the Moore Lake Commons area. There is no question that this entertainment center would add to the vitality of that project area. Staff also understands that this location is the first of four anticipated Sports Spree facilities in the metro area. However, in the past the HRA has not developed a policy to assist commercial leasehold tenants. Previous assistance policies have been developed for free - standing buildings and users only. Also, on several occasions, the HRA has indicated to staff that funds should be prioritized for housing programs, redevelopment priorities such the Lake Pointe site and southwest quadrant at Mississippi Street and University Avenue, and for industrial business expansion and retention. Ms. Dacy stated that if the HRA decides to proceed with the loan, staff would like to point out the following issues: 1. Although the proposed location is in the redevelopment project area, it is not in the tax increment district; therefore, there is not the backup-for capturing the increment from the added improvements to the building. 2. The loan has to be secured by the ownership of Sports Spree. (If the HRA did execute the loan, the interest earnings based on 7.5% over ten years would be $21,960.10.) Ms. Dacy stated that Pat Pelstring, President of Business Development Services, Inc., and representing Sports Spree, and the President of Sports Spree, Chuck Tuchfarber, are at the meeting. Mr. Pat Pelstring stated that this is somewhat of a unique project. They believe Sports Spree is the type of developer the City of Fridley is looking for in its commercial areas and which will promote additional commercial growth in this area. It promotes a family healthy recreational alternative for children and adolescents, ages 8 -20, and their parents. It is an alcohol -free and smoke -free center. Sports Spree would also provide employment opportunities for young people. Mr. Pelstring stated this facility will be the first prototype center in the Twin Cities area. An additional 2 -3 facilities are planned for the Twin Cities area. The Fridley facility will also be the operations headquarters for the company which will add 3 -5 employees initially. Mr. Pelstring stated this is a new business, and they are well aware that it is very difficult to secure bank participation in a new business venture. They believe the bank's participation, I, HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 8, 1993 PAGE 3 though not as much as they would have liked, indicates the bank's endorsement support for this project. But, the difficulty in raising the significant level of equity for the center has made it difficult to complete the financing. They are asking the HRA's consideration for this very unique project. Mr. Chuck Tuchfarber handed out copies of the press release announcing the project. He stated they believe the Sports Spree facility offers at least three benefits to the City of Fridley in bringing forth additional funds to this project: 1. It will revitalize the Moore Lake Commons Shopping Center. 2. They will be employing approximately 20 people, many of whom will be young people within the community. This will be the operations center for the Twin Cities area. 3. This will be a nice addition to the social fabric in Fridley. Mr. Tuchfarber stated the Sports Spree Fun Center generically is considered an indoor family entertainment center. The thing that drives the product is the multitude of activities available 365 days a year. It is broken down into eight different groupings of activities within approximately 24,000 square feet of area. They plan to have 18 holes of miniature golf, fast pitch and softball batting cages for all age groups, a bumper car area, a soft play area and climbing system for the younger children, a micro basketball court, a number of party rooms, a video arcade area, and a non - alcoholic sports bar. Included in the sports bar is the Bridgeman's Soda Fountain. The prices range from 25 cents to $2.50 so it is very affordable to people in the community. Mr. Tuchfarber stated the Sports Spree facility is designed for children and parents to participate in activities on a pay- as -you- play basis. To his knowledge, there is nothing like this in the Fridley area, or a facility as complete as this in the northern suburbs, so it will be a very nice addition to the Fridley community. Mr. Tuchfarber stated they have a number of substantial investors who have put in a substantial amount of monies. The problem is that this is a start -up company, and they are struggling to fill in the gap. That is the reason for their request for a $50,000 ten year loan. Mr. Pelstring stated they are not asking for a grant or tax increment assistance but a market rate loan. They are also not asking for any direct incentives or inducements. It will be a loan well secured to the HRA's satisfaction. They recognize this is a HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 8, 1993 PAGE 4 unique request, but this is a unique project with a lot of benefits. Ms. Schnabel asked the maximum amount of people who can be served in the facility at one time. Mr. Tuchfarber stated they can serve around 300 people at one time. On a busy Saturday or Sunday, they would anticipate about 1,000 family members using the facility. Conservatively, they believe they will serve 120,000 peoples on an-annual basis which will be very good for revitalizing the Moore Lakes Common Shopping Center. They believe it will pull from about a 10 mile radius. Mr. Prairie asked the seating capacity for the restaurant. Mr. Tuchfarber stated there are two areas in the restaurant, a closed -off area which will serve around 60 -70 people, and the main sports bar area which will serve another 60 people, so the total is about 120. They have some expansion room on the lower level that can accommodate another 40 people. Ms. Schnabel asked if there are any similar facilities in the Twin Cities area. Mr. Tuchfarber stated there is a facility in Eagan called Grand Slam, which has been in operation about 2 1/2 years and has been very successful. That particular facility pulls from a 30 minute driving radius. Mr. Commers asking the timing for this request. Mr. Tuchfarber stated that they would like to get some indication from the HRA within the next 30 days. Thgy would like to open the facility in September. They have actually started the demolition,. but are holding any additional construction until all the funding is in place. Mr. Commers stated that with other projects the HRA has assisted, they have either had tax increment behind them or some security in real estate. They have not done anything quite so straight - forward regarding tenant improvements or something of that nature. He did not know if the improvements are necessarily reflected in the value of the building. Even so, the project is not in the tax increment district, and the HRA cannot capture any revenues to offset the risk of the loan. What the HRA members have to decide is whether or not this is the type of project they would like to consider. Mr. Meyer stated this venture does not own the building. It is a tenant and there are $950,000 for leasehold improvements so the HRA really has no collateral for its loan. HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 8. 1993 . PAGE 5 Mr. Pelstring stated he can understand the HRA's concern regarding the loan and that the HRA gets a secure investment. They would be happy to meet with staff to work out something that would give the HRA some comfort. They do recognize that this site is not in a tax increment district. That is why they are not asking for a 3% interest rate or a grant. They are just trying to fill a.gap in the market rate and give the HRA a reasonable security level. He believed these are issues they can work out to the HRA's satisfaction. Mr. Meyer stated it seems like they are going into the "loan without collateral" business and getting into a leasehold improvement situation which is noticeably different from normal HRA activities in terms of advancing public monies. He- can understand the potential benefits to the Moore Lake Commons Shopping Center and the City, but it would obviously create a demand on the HRA's resources for other types of similar ventures in the City because they would have breached a certain activity beyond which they have not gone before. Ignoring the merits of this particular case, does the HRA want to get into this extended venture? Mr. Commers stated the issue before the HRA is whether or notthe HRA has any interest in this kind of a transaction. If they do, then there can be further discussions. But, it does bring up policy issues which make this decision even more difficult. Ms. Schnabel stated she agreed with Mr. Meyer. The HRA recently analyzed how they wanted to allocate funds and where they wanted those funds directed. This proposal is'outside that area. If the loan was for a shorter period of time, she might be a little happier with the request. Even though this request is not for a large amount of money, it might be significant in terms of timing on their other projects. What bothers her the most is that this is deviating from the plan the HRA recently reviewed and established. Mr. Meyer stated they have bitten off quite a chunk of new activity with the housing rehab area. Mr. Commers stated the other side of it is that the Moore Lake Shopping Center is not doing well, and it would be nice to get the Moore Lake Shopping Center up and going again. That corner is highly visible. Ms. Schnabel stated she agreed that this is an exciting project, and she is supportive of the project. She is just reluctant to open a new door for funding that the HRA has not done before in light of the fact that the HRA recently made some very significant decisions on the things they want to support. T HOUSING & REDEVELOPMENT AUTHORITY MTG.. JULY S. 1993 6 Mr. Prairie asked if there is any other way of helping out the project in terms of funding, or is this the only proposal? Mr. Burns stated he did not believe there is another source of funding other than tax increment funding. Mr. Meyer stated this is not the right time to be getting into the business of insuring loans. If they do get into the loan business with this venture, that means they would be opening the door for other ventures.. ® - Ms. Schnabel stated she supported Mr. Meyer's statement. The HRA has already made their commitments. Mr. Prairie agreed that this deviates from what the HRA has done in the past; however, it would be nice to have a viable business in the Moore Lake Shopping Center. Mr. McFarland stated he saw two things with this request. The first one is the risk, and the second one is whether the HRA wants this as a project. He believed the HRA will have to resolve the latter first. He would like to see something happen in that shopping center, but he is not sure if that is the HRA's function. Mr. Commers agreed that the risk is a separate issue. MOTION by Mr. Meyer, seconded by Mr. Prairie, that, from a policy point of view, the HRA does not wish to be involved in the funding of tenant leasehold improvements as part of an overall development project. UPON A VOICE VOTE, COMMERS, SCHNABEL, MEYER, MCFARLAND VOTING AYE, PRAIRIE VOTING NAY, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED BY A VOTE OF 4 -1. Mr. Commers stated that this was a very difficult decision. He stated the HRA is very impressed with this project itself. Part of the problem is the bad timing as the HRA recently spent many hours developing priorities, putting together a program, and allocating their resources. He did not think the HRA members are against some kind of assistance if there is some other method of doing it. He encouraged the Sports Spree people to continue to talk to City staff and Jim Casserly to see if there are any alternatives, but the HRA just is not in a position to honor the current request. Mr. Pelstring stated he understood the HRA's concerns. He stated he would like to continue discussions with staff. There are some distinctive things about their project that can, from a policy standpoint, set it apart from any other retailer that might come in for assistance for different reasons. He would like to address that issue first and that might help guide further discussions. F HOUSING A REDEVELOPMENT AUTHORITY MTG.. JULY S. 1993 PAGE 7 In terms of the way the request was structured, he has some ideas that might make some sense. Mr. Commers wished them luck. 2. CONSIDER RESOLUTION REGARDING HOME IMPROVEMENT LOAN PROGRAM: Mr. Fernelius stated there are four items on the agenda related to the housing rehab program. Before getting into each resolution, he would like to review each of- the individual programs, highlighting the features of each program. He stated he had prepared a summary sheet on the Home Improvement Grant Program, the Home Improvement Loan Program, the Home Mortgage Assistance Program, and the Rental Rehabilitation Loan Program. He reviewed each of these programs with the HRA. Ms. Schnabel stated that with the Home Improvement Grant Program, she is concerned that the program will not be available to enough people or to a limited number of people because the gross income is too low. Mr. Fernelius stated the City is in the process of receiving applications. Out of 170 applications sent out, he has received about 30 completed applications. About half of those are for the grant program. Based on'the verification submitted, these people would qualify for the program so there is a demand out there. These limits are established by Anoka County for the county -wide program, and there are waiting lists in other parts of the County. Ms. Dacy stated that at the August meeting, she will bring in the census data indicating the gross household incomes. Mr. Fernelius stated he had included a brief overview of the application process. They are currently accepting pre- screening applications. If all goes well, starting July 19 through the end of July, he will go through the applications for the single family programs and, using the criteria that has been established, score each of these applications. At that time, those with the highest scores will be given the opportunity to receive funding. During the first of August, staff hopes to conduct a property inspection to find out what type of code deficiencies exist so those minimum items are included in the applicant's financing package. Once the inspections are completed, the applicants will be given 30 days to approach the lender in the case of the two loan programs for single family in which to make an application. For the grant program, the City will be working in cooperation with ACCAP to jointly administer that program. The applicants for the .grant program will be directed-to ACCAP for additional processing. Mr. Meyer stated he is concerned that code violations are taken care of with these programs. Does the owner create the list of improvements he /she wants done? HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 8. 1993 PAGE 8 Mr. Fernelius stated the contract inspector will generate that list. As part of the application process, before HRA funds are committed, staff has the opportunity to review the primary loan application to make sure those improvements are included. It has always been his understanding that in order for the HRA dollars to be involved, the minimum code violation improvements have to be included in the application. Ms. Dacy stated that the minimum code improvements are still top priority. Mr. Fernelius stated that some of the documents that are attached to the resolutions will need to be slightly revised, but there are no policy changes or changes in program design. Any changes of that nature would be brought back to the HRA. Mr. Casserly stated all three resolutions for the housing rehab programs are essentially the same in format. The design by these resolutions if to have the HRA adopt the general policies for each program. Attached to each resolution is a brief description of each program. What is significant about that is the HRA is setting the income limits for each program. The HRA is also approving the form of the documents and authorizing staff to carry whatever actions are necessary to implement these policies and give effect to the programs. Mr. Casserly stated each resolution has specific documents attached to it; and, by approving the resolutions, the HRA is also authorizing the Executive Director and Chairperson to execute those documents. Mr. Casserly stated that, as Mr. Fernelius stated earlier,.staff is still in the process of doing some refining on a couple of features in those documents, but the concept, program. description, and essential format are all contained in the present documents. Mr. Commers stated that as a supplement to this, he would like staff to develop some type of monthly reporting process back to the HRA, at least initially, on the number, type, and specific characteristics of each program. This will keep the HRA updated on what is taking place on an monthly basis. MOTION by Ms. Schnabel, seconded by Mr. McFarland, to approve Resolution No. HRA 3 -1993, "A Resolution Establishing a Home Improvement Loan Program; Establishing the Area of Operation; Providing for the Delegation of Certain Powers and Duties; Authorizing the Execution of a Memorandum of Understanding by and between the Housing and Redevelopment Authority in and for the City of Fridley and the Fridley State Bank ". HOUSIN & REDEVELOPMENT AUTHORITY MTG.. JULY S. 1993 PAGE 9 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. CONSIDER RESOLUTION REGARDING HOME MORTGAGE ASSISTANCE PROGRAM: MOTION by Mr. McFarland, seconded by Ms. Schnabel, to approve Resolution No. HRA 4 -1993, "A Resolution Establishing a Home Mortgage Assistance Program; Establishing the Area of Operation; Providing for the Delegation of Certain Powers and Duties; Authorizing the Execution of a Mortgage Origination Agreement by and between the Housing and Redevelopment Authority in and for the City of Fridley and United Mortgage Corporation ". UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. CONSIDER RESOLUTION REGARDING RENTAL REHABILITATION LOAN PROGRAM: MOTION by Mr. Prairie, seconded by Ms. Schnabel, to approve Resolution No. HRA 5 -1993, "A Resolution Establishing a Rental Rehabilitation Loan Program; Establishing the Area of Operation; Providing for the Delegation of Certain Powers and Duties; Authorizing the Execution of a Memorandum of Understanding by and between the Housing and Redevelopment Authority in and for the City of Fridley and the Fridley State Bank; Authorizing Execution of an Administration Contract with the Minnesota Housing Finance Agency ". UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. CONSIDER RESOLUTION REGARDING CONTRACT INSPECTORS FOR HOUSING REHABILITATION PROGRAMS: Mr. Commers stated he has some concerns about the inspection report in that he thought it was too general and not specific enough in the items to be inspected. He suggested staff look at the Metro HRA inspection report which seems to be a more specific checklist. Mr. Fernelius stated staff wanted to keep in mind the cost of each inspection in terms of how much time it would take to complete a very lengthy inspection form. He generated the inspection report, combining other inspection reports he had received. He is certainly willing to revise this inspection form to.make it more specific regarding what items are to be covered during an inspection. However, if they get a report that is very lengthy, they may be creating a document that is going to take a lot of time to complete; and they may not find inspectors who are willing to do that kind of inspection for the price budgeted. HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 8, 1993 PAGE 10 Mr. Fernelius stated he also wanted a user - friendly document so that a copy of the inspection report could be given to the homeowner that the homeowner could understand and which would help eliminate a lot of extra paperwork. Mr. Commers stated he believed the Metro HRA inspection report is user - friendly in that it is all printed out and the inspector only has to check whether a particular item passes or fails. There is place at the bottom of the report for comments. With this type of report, the City knows that the inspector has looked at each one of the items listed. Mr. Commers stated he would like staff to consider looking at the inspection report to make it a little more specific and not so wide open. Mr. Fernelius state he is certainly willing to make modifications to the inspection report to make it more detailed. MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve Resolution No. HRA 6 -1993, "A Resolution Authorizing Execution of a Contract for Housing Rehabilitation Inspection Services" and to adopt in general form the attached contract. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 6. RESOLUTION ADOPTING ICMA RETIREMENT CORPORATION AS THE DEFERRED COMPENSATION PLAN PROVIDER FOR THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY: Ms. Dacy stated this is an item that needs to be adopted because the HRA has hired Mr. Fernelius. Mr. Hansen stated that approving this resolution gives Mr. Fernelius the retirement option that all City of Fridley employees have. MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve Resolution No. HRA 7 -1993, "Resolution Adopting ICMA Retirement Corporation as the Deferred Compensation Plan Provider for the Fridley Housing and Redevelopment Authority ". UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 7. CLAIMS AND EXPENSES: Mr. Hansen added two checks to the check register, one to Isaacson Lawn Care Service, Lake Pointe Maintenance Estimate #3, in the amount of $3,924.27; and NSP in the amount of $43.86. HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY So 1993 PAGE 11 NOTION by Mr. Prairie, seconded by Ms. Schnabel, to approve the claims and expenses and the issuance of checks, numbers 2343 - 2382. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 8. DISCUSS STATUS OF RICE PLAZA: a Ms. Dacy stated the HRA acquired the Rice Plaza property in 1990. In 1991, the shopping center was at full occupancy, and it had an operating surplus of $47,000. In 1992, three of the eight tenants left, and revenues dropped to $8,888. If the current four tenants remain until the end of 1993, the projected balance is a deficit of $8,130. These cash flow numbers do not include any type of amortization for the original acquisition price. Ms. Dacy stated Cinnamon Skins has a lease that extends until the end of December 1993. Hong Kong Kitchen's lease expires at the end of October 1993. The remaining two tenants are on a month -to -month basis. Ms. Dacy stated the HRA has received a letter from the owner of Cinnamon Skins, Arland Breyer, requesting to break the lease, leaving the building on September 1, so they can occupy another space in Fridley. Ms. Dacy stated staff has recommended to Mr. Breyer that the lease be extended until at least November 1, which would match the Hong Kong Kitchen lease and minimize the HRA's losses. Ms. Dacy stated that staff has heard by word of mouth that another tenant, My Sister's Closet, is also looking for another tenant space. No matter what action the HRA takes in terms of the Cinnamon Skins lease, the shopping center could be.down to two tenants for the last two months of the year. If that is the case, staff recommends that the HRA authorize demolition in the last two months of 1993. After the HRA 's action at this meeting, staff will tell Jim Kordiak to notify the tenants as soon as possible so that they can begin looking for other locations. Ms. Dacy stated that at the May 20, 1993, meeting, the HRA authorized staff to proceed with a $5,000 driveway improvement to the rear of the building because of some traffic conflicts with Dairy Queen and the other tenants. However, if the HRA recommends demolition, then it is not necessary to make this driveway improvement. Ms. Dacy stated that in March of 1992, Darrel Clark, the former Chief Building Official, obtained a demolition estimate of $25,000 HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 8, 1993 PAGE 12 to remove the building. Staff believes that number is still accurate. Ms. Terrie Mau, Cinnamon Skins, stated she is representing Arland Breyer's interest in this property. She stated they have found a new location within Fridley which is available now, and they would like to move their business to this new location. Finding property available is Fridley is very difficult because of the type of business they have. They have to stay in close proximity to their current location in order to preserve their customer base. She stated they had hoped that they would be able to move to the new development on the old 10,000 Auto Parts site, but that doesn't doesn't appear to be happening. Their new site (in the old Cost Cutters' tenant space on .53rd Avenue) has been vacant for some time, and the owner is anxious for them to move in on August 1. With the new rent ad the fact that this is a slow time for their business, they cannot foresee paying rent for two locations for three months. They are requesting that the HRA release Cinnamon Skins from their lease as of September 1, 1993, which is only two months prior to the lease expiring on November 1. Ms. Mau stated that the road construction and the Dairy Queen's drivethrough have caused irreparable damage to their current location. During the Dairy Queen's busy hours, from 6:00 to 9:00 p.m., which is also a busy time for Cinnamon Skins, the parking situation has been very difficult for their customers. Ms. Mau stated they are in a very difficult spot, business -wise, and they are hoping to continue their business in Fridley and are motivated to stay in Fridley. Mr. Meyer stated he believed this is a reasonable request. Mr. Commers stated he agreed with Ms. Mau that with the construction, things are really a mess at the Rice Plaza shopping center. Mr. McFarland stated he is in favor of releasing Cinnamon Skins from their lease. MOTION by Mr. Meyer, seconded by Mr. McFarland, to honor the request by Cinnamon Skins to terminate the lease as of August 31, 1993. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Mr. McFarland, seconded by Mr. Prairie, to instruct Jim Kordiak to give the other tenants notice of demolition and to release Hong Kong Kitchen from their lease. HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY S. 1993 PAGE 13 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. It was the consensus of the HRA to not make the - driveway improve- went to the rear of the building. 9. MEMO ON MULTI -TECH SYSTEMS INTEREST IN LAKE POINTE SITE: Ms. Dacy stated John Ryden from CB Commercial has expressed an interest by Multi -Tech Systems to relocate its headquarters from the Moundsview Business-Park to approximately ten acres of the Lake Pointe site. Multi -Tech would build a one - story, 70,000 square foot building, with a portion of it as a two -story office complex. Multi -Tech is looking for a high tech image site rather than the typical manufacturing- warehouse industrial park appearance. Ms. Dacy stated she has told Mr. Ryden that she did not believe this proposal is consistent with the vision the HRA and City Council have for the Lake Pointe property. If the HRA feels differently about this proposal, they should let staff know. Mr. Commers stated the HRA and City Council spent a whole day on May 8, 1993, discussing their vision for Lake Pointe. He agreed with staff that this is not the type of project the City is looking for. The HRA members agreed with Ms. Dacy and Mr. Commers. 10. MEMO ON STATUS OF ALL TEMP EXPANSION PROJECT: Ms. Dacy stated this is regarding the request by All Temp for tax increment financing assistance for expansion of the existing All Temp facility at 5400 Main Street. At this time, staff is just waiting to see if All Temp is going to proceed with the project and tax increment financing assistance request. 11. OTHER BUSINESS: a. Tax Increment Financing Request from Victor Rosenblum Ms. Dacy stated Victor Rosenblum owns a company in St. Paul called Cooperative Plating, Inc. He would like to build a second facility on a site in the Great Northern Industrial Center. The new business will be called ECO Finishing, Inc. The estimated project cost is $2,250,000, and they are requesting $125,000 in tax increment financing assistance. The new company will immediately create 30 new jobs with the possibility of 80 jobs in the next five years. The initial phase to build a 29,000 square foot office and industrial complex. 4 HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 8,_1993 PAGE 14 Ms. Dacy stated staff received this information late last week, and they have not had an opportunity to review the information in detail with Mr. Rosenblum. Mr. Casserly has briefly reviewed the information and found that it meets the requirements of tax increment law and that the request can be reimbursed in 3 1/2 tax years. Ms. Dacy stated staff will be meeting with the petitioner. Mr. Burns will probably submit this information to the Council for informal discussion -the latter part of July, and this request will probably be on the HRA' s August 12, 1993, agenda. The HRA agreed to authorize staff to continue discussions with Mr. Rosenblum. b. Reuse of Property at 5720 Polk Street N.E. Ms. Dacy stated ACCAP is not interested in rehabilitating the existing structure at* 5720 Polk Street and relocating it on the property because of the excessive cost. Therefore, staff is recommending that the City proceed to demolish the existing structure. The memo dated July 1, 1993, was included in the HRA packet to let the HRA know that this is a potential site for the scattered site acquisition program, option number two in the memo. C. Request for HRA Funding of Wetland Consultant Study Ms. Dacy stated that in the spring of 1993 during the preparation of the City's 1993 General Fund budget, staff determined that it was necessary to hire a consultant to inventory the City's wetlands. The consultant contract is necessary because of the passage of the Wetland Conservation Act of 1991 by the State Legislature. Ms. Dacy stated that request for proposals were mailed to six environmental consultants, and the lowest cost as submitted by Westwood Professional Services, Inc., and Peterson Environmental Consulting, Inc., for $7,990. Ms. Dacy stated that two - thirds of the contract cost, or $6,000, will be paid through the City's General Fund. It is requested that the HRA authorize up to $1,990 from the "Non - Program Studies" line item of the 1993 HRA budget. The HRA allocated $28,000 for non - programmed studies. The Wetland Conservation Act of 1991 requires that cities inventory where their wetland areas are and determine their public value, and the-consultant study will do that. Staff believes some of these wetland areas are going to be located in tax increment districts. HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 8, 1993 PAGE 15 MOTION by Ms. Schnabel, seconded by Mr. McFarland, to authorize an expenditure not to exceed $1,990 to be used for a portion of the wetland consultant contract with Westwood Professional Services, Inc., and Peterson Environmental, Inc. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ADJOURNMENT: MOTION by Mr. Prairie, seconded by Mr. Meyer, to adjourn the meeting. Upon a voice vote, all voting aye, Chairperson Commers declared the motion carried and the July 8, 1993, Housing and Redevelopment Authority meeting adjourned at 10:10 p.m. Res ectfully submitted, jet-j�— L e Saba Re ording Secretary r � 1.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE:, August 5, 1993 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Consider Settlement Agreement with Don Fitch A settlement agreement has been prepared by Bradley Martinson, Don Fitch's attorney, regarding the Dairy* Queen condemnation. The agreement conforms to the. direction provided by the Housing &. Redevelopment Authority and the City Council. The Executive Director has suggested that item #7 on page 2 be changed to 120 days rather than 60 to allow adequate time for the redevelopment project in the northeast corner to be finalized. Also, Jim Casserly is reviewing-the agreement and will provide his comments at the HRA meeting. Staff recommends that the HRA adopt a motion to authorize the Executive Director to sign the settlement agreement, subject to changing item #7 to 120 days. BD: 1S M -93 -442 d _A h M n 1.2 SETTLEMENT AGREEMENT THIS AGREEMENT, made this day of , 1993, between Ernest L. Fitch, Muriel K. Fitch, Donald A. Fitch and Judith A. Fitch (hereinafter "Fitch "), and The Housing and Redevelopment Authority of the City of Fridley, Minnesota, a public body corporate and politic under the laws of Minnesota ( "HRA "). R E C I T A L S: 1. Fitch owns real property located at 298 Mississippi Street NE,� Fridley, MN ( "Property "). 2. Fitch operates a Dairy Queen franchise on the Property. 3. HRA has exercised its power of eminent domain and acquired title to the Property owned by Fitch described above. 4. Pursuant to Minnesota Statute § 117.042, HRA deposited with the District Court Administrator the sum of $125,000.00, representing its approved appraisal of value. 5. The court appointed Commissioners awarded Fitch $165,000.00, as damages for the taking and Fitch has appealed the award to the District Court. 6. Fitch has signed a Letter of Intent to relocate his Dairy Queen franchise and to participate in the development of certain property ( "Project ") within the jurisdiction of the HRA. 7. HRA has agreed to assist Fitch and his partner in the development of the Project by offering tax increment financing consistent with a Development Agreement to be negotiated between the parties. A G R E E M E N T: In order to resolve the issue of damages resulting from the eminent domain taking, and to memorialize the HRA Agreement to participate in the Project, the parties have reached the following Agreement subject to (a) the HRA, Fitch and his partner in the Project negotiating satisfactory terms for a Development Agreement and (b) Fitch executing a partnership agreement for the development of the Project. IT IS HEREBY AGREED: 1. Fitch agrees to immediately suspend the appeal and the parties shall jointly request the Court to suspend further court proceedings pending negotiation and execution of a mutually satisfactory Development Agreement. 2. Fitch and HRA shall immediately enter into negotiations for the terms of a Development Agreement for the HRA's participation through tax increment financing in the Project. 1.3 3. Fitch shall stipulate that the amount of the Commissioner's Award may be included in the tax increment financing provided by HRA to the Project and waive further claims against HRA as a result of the taking. 4. HRA shall commit the total sum of Five Hundred Thousand and no /100 Dollars ($500,000.00) in tax increment financing, which sum includes $200,000 resulting from Fitch's waiver of payment of the Commissioner's Award. 5. Upon payment of $500,000.00 in tax increment financing, subject to the Development Agreement, -Fitch shall return or cause to be returned to the HRA the sum of $125,000.00 from the Quick Take Deposit. Interest accruing on said amount from the date of deposit shall belong to Fitch. 6. Both parties shall execute and deliver full releases to each other from any and all claims for compensation, relocation, going concern, real estate value, fixture value or any other entitlement to compensation which would, except for this Release, have existed and also releases from any and all claims associated with the acquisition of the real estate. 7. If the parties do not enter into a Development Agreement for the Project within sixty (60) days of the date of this Settlement Agreement, either party may elect to terminate this agreement upon ten (10) days' written notice to the other. 8. If this Settlement Agreement is terminated, either party may notify the court of the termination of this Settlement Agreement and request that the matter be reactivated and request that a new Scheduling Order be issued IN WITNESS WHEREOF, the parties have executed this document this day of , 1993. FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY LI-VA (signatures continued on next page) -2- Its: ERNEST L. FITCH MURIEL K. FITCH (signatures continued from previous page) 0831D/052793 DAJ:fsEncl -3- An Equal Opportunity Employer DONALD A. FITCH JUDITH A. FITCH 1.4 a° 0 2.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley August 5, 1993 William Burns, Executive Director of HRA I Barbara Dacy, Community Development Director Consider Amended Leasehold Agreement for Fridley Plaza Office Building Parking Lot February 13, 1992, the HRA approved a third amendment to the leasehold eement between the HRA and Columbia Park Properties to correct a legs cription error. At that time, the attorney. for Columbia Park Properties, e Hurley, suggested that since the amendment was the third amendment, leasehold agreement should be. prepared to incorporate all previous urther, Columbia.Park Properties hired Frauenshuh Companies to manage ffice building. Staff has met Frauenshuh Companies-on a number of occas, egarding the ongoing maintenance issues including snow removal, parking aintenance, and lawn and irrigation maintenance. None of the prey, easehold agreements.-specifically stated maintenance responsibilities. ese two factors have led both staff .and Columbia Park Properties to sugges revised leasehold agreement. ince the Fridley Plaza Office Building was constructed, the City has esponsible for maintaining the irrigation system to the boulevard a long Fourmies Avenue and 5th Street, as well as to.the vegetation in laza area. Further, the City has been responsible for the lawn egetation maintenance in these area as well as snow removal iscellaneous parking.lot items. e original lease agreement stipulated an $800 per month rental payment. the HRA will recall., the former owners of the property were in arrears an agreement was made to waive $9,200 in delinquent rental payments upon yment of $10,000 and satisfactory payment of the rent for three years until ril 1, 1994. The current owners are paying the rent on time. 2.2 Amended Leasehold Agreement for Fridley Plaza Office Building Parking Lot August 5, 1993 Page 2 The original lease also stipulated a term of 99 years. The term of the proposed lease has not changed. The original lease also provided the property owners with the option to purchase the parking lot at the termination of the lease in the year 2081. This too has not been changed. Paragraph 6 of the proposed lease specifies maintenance responsibilities. Columbia Park Properties will be responsible for snowplowing the parking lot, and the City will be responsible for removing the piles of snow within 72 hours. This has been the general arrangement between the. City and the building owner in the past. The City is also responsible for street and parking lot lighting. There is no change to this responsibility. Since the parking lot was constructed, the parking lot has not been sealcoated or restriped. These items should be completed as soon as possible. Columbia Park Properties is requesting that the parking lot be sealcoated and striped this year. The proposed agreement proposes striping and sealcoating of the parking lot once every four years. Estimated cost of the sealcoat and the striping is approximately $2,400- 3,400. The annual rent payments of $9,600 could be used to defray the maintenance expenses. The proposed agreement also provides for the continuing maintenance of the lawn and shrubbery in the boulevard areas along the streets Any vegetation, however, within the Columbia Park Properties' property lines would be the property owner's responsibility. At some time in the future, the parking lot may have to be repaved. The agreement stipulates that the HRA would be responsible for this cost. An estimated cost for repaving is approximately $4,500. Finally, the agreement proposes that the HRA sweep the parking lot in the spring and in the fall. The Public Works Department has swept the parking lot according to this schedule. Recommendation Staff recommends that the HRA authorize the Chairperson and Executive Director to execute the revised leasehold agreement. Further, staff recommends the HRA authorize staff to execute contracts to have the parking lot sealcoated and striped in cooperation with the property owner as soon as possible. BD:ls M -93 -441 2.3 REIRINED COPY AMENDED AND RESTATED LEASEHOLD AGREEMENT This Amended and Restated Leasehold Agreement, entered into this day of Matt, 1993, by and between THE HOUSING AND REDEVELOPMENT AUTHORI''`St'�����ff AND FOR THE CITY OF FRIDLEY, MINNESOTA (hereinafter called the "HRA"), and COLUMBIA PARK PROPERTIES, a Minnesota Partnership (hereinafter called "Redeveloper "). WHEREAS, on the 20th day of September, 1982, the HRA and the Fridley Office Plaza Building Partnership entered into a Leasehold Agreement ( "Leasehold Agreement ") which required the HRA to provide the Fridley Plaza Office Building Partnership with a non - exclusive right to lease a 166 car parking lot; and WHEREAS, the Leasehold Agreement was amended pursuant to Amendment to Leasehold Agreement, dated August 1, 1988, providing for the construction of a parking ramp on the site of the parking lot; and WHEREAS, the Leasehold Agreement was further amended by instrument, dated February 22, 1989, which revised the legal description of the property subject to the Leasehold Agreement to afford the Fridley Plaza Office building Partnership additional vehicle ingress and egress access to the parking ramp parcel; and WHEREAS, the HRA and the Fridley Plaza Office Building Partnership entered into that certain Memorandum of Leasehold Agreement, dated February 22, 1989, filed March 9, 1989, in the Office of the Anoka County Recorder as Document No. 842658, to establish the Leasehold Agreement of record; and WHEREAS, the Fridley Plaza Office Building Partnership assigned its interest in the Leasehold Agreement to Performance Investments, a Minnesota Partnership, by Assignment, dated March 3, 1989; and WHEREAS, Performance Investments assigned its interest in the Leasehold Agreement to Redeveloper by assignment of Leasehold Interests, dated August 29, 1991; and WHEREAS, the parties to this Agreement have discovered that the new legal description is not correct and the parties agree that the Leasehold Agreement, as amended, should be further amended and restated to clarify the terms and conditions thereof. NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree to amend and restate the Leasehold Agreement as follows: 1. Lease Purpose. The HRA hereby leases to the Redeveloper the property described on Exhibit A ( "Leasehold Property ") attached hereto for the purpose and non- exclusive use of the property for parking of vehicles associated with the use 5 2.4 and operation of the building located on land owned by Redeveloper and described on Exhibit B attached hereto ( "Redeveloper Property "). Further, the HRA grants to Redeveloper or any future holder of the lessee's interest herein, for the benefit of the Redeveloper Property, the non - exclusive right of ingress and egress over and across the Leasehold Property. This lease shall be binding upon the heirs, successors and assigns of the Redeveloper. The Leasehold Property includes the parking lot and bi -level ramp. 2. Term of Lease. The term of the Lease commenced September 20, 1982 and continues until September 20, 2081, unless sooner terminated as provided herein. 3. Monthly Rent. The Redeveloper shall pay as and for the rental of the Leasehold Property as defined herein, the sum of Eight Hundred and No /100 Dollars ($800.00) per month. Rental payments are due on the first day of the month and shall be considered late after the tenth day of the month. 4. Forgiveness of Back Rent. Performance Investments, a previous holder of the Lessee's interest in the Leasehold Property was delinquent in lease payments under the Leasehold Agreement in the amount of $19,200.00. In consideration of the payment of $10,000.00 to the HRA by Redeveloper, the HRA agreed to waive and forego $9,200.00 in delinquent rental payments owed under the Leasehold Agreement on the condition that Redeveloper pays all rental payments when due or within 30 days after receipt of written notice of the payment being due, for all monthly rental payments which are due through April 1, 1994. On April 1, 1994, if .Redeveloper has paid all rental payments due and owing as provided herein, then in such event, all delinquent rent referred to.herein shall be deemed forgiven. In the event Redeveloper fails to pay any rental payments within thirty days after receipt of written notice as provided herein, then in such event, in addition to any other remedies available, the HRA may demand that the additional $9,200.00 in delinquent rental payments be paid in full immediately. 5. Option to Purchase. Upon the expiration of the lease term as provided herein, assuming Redeveloper has not defaulted under the terms and conditions of said lease, then in such event, the Redeveloper shall have the option to purchase from the HRA the real property described on Exhibit C attached hereto ( "Option Parcel "). The purchase price for Option Parcel shall be its fair market value at the time the option is exercised. In the event Redeveloper exercises this option, then in such event, Redeveloper and the HRA shall close on the purchase of the Option Parcel within 90 days after the expiration of the Leasehold Agreement. The HRA shall be obligated to deliver marketable title to the Option Parcel free of any liens or encumbrances delinquent taxes and special assessments. The Redeveloper may -2- N 2.5 exercise this option only by delivering written notice of its option to purchase by certified mail or by hand delivering to the HRA not more than twelve months nor less than six months prior to September 20, 2081. In the event the HRA and Redeveloper cannot come to an agreement as to the fair market value of the Option Parcel, within thirty days after the Notice of Option to Purchase has been delivered as provided herein, then in such event, the fair market value of the Option Parcel shall be determined in the following manner: Both the HRA and the Redeveloper shall each select an MAI certified appraiser and they shall each mutually agree upon a third MAI certified appraiser. The average of the three (3) appraisals shall then be the fair market value. Both the HRA and the Redeveloper will pay for the cost of the appraiser which they appoint and shall share equally in the fees incurred for the third appraiser. 6. Maintenance of the Leasehold Property. (a) Snow Removal. Redeveloper shall be obligated to provide the snow removal, at its sole cost and expense, of the Option Parcel, which property is included in the Leasehold Property and shown as the cross- hatched parcel on Exhibit D hereto. Nothing herein provided shall obligate Redeveloper to do any snow removal on any remaining portion of the Leasehold Property. All snow removal on sidewalks connecting the Option Parcel and Redeveloper's property shall be completed by Redeveloper at its sole cost and expense. Redeveloper shall be obligated to push all snow accumulations from the Option Parcel to an area of the Option Parcel (b) Street and Parking Lot. All lighting of streets and parking lot which is adjacent to the Redeveloper's property and serves said Leasehold Property, shall be paid by the HRA. -3- 2.6 (c) Maintenance, seal coating and Striping the option Parcel Leasehold Property. All maintenance, seal coating, striping and resurfacing of the Option Parcel shall be undertaken and completed by the HRA at its sole cost and expense. All striping, seal coating or resurfacing of the Option Parcel shall be done on an as needed basis. The Redeveloper shall contact the HRA and notify the HRA of its request for any such maintenance, seal coating and striping of-the Option Parcel. The HRA and Redeveloper agree that the Option Parcel shall be seal coated and striped at least (d) Maintenance of Lawn and Shrubbery. Any lawn area, shrubbery located on the Redeveloper's Property shall be maintained by Redeveloper at its sole cost and expense. Any lawn area or shrubbery lying outside of the Redeveloper's Property and included within the Leasehold Property hereto shall be maintained at the sole cost and expense of the HRA. (e) Paving and Curbing of Leasehold Property. Any paving and curbing replacement of the Option Parcel shall be at the sole cost and expense of the HRA. (f) Parking Lot Sweeping. The HRA shall, at least once each spring and once each fall, during the lease term, sweep the Option Parcel. 7. Real Estate Taxes and Special Assessments. All real estate taxes and special assessments levied against the Leasehold Property shall be paid by the HRA. 8. Default. In the event of any default or failure to pay rent under the terms and conditions provided herein and Redeveloper fails to cure said default within 30 days after receipt of written notice from HRA, then in such event, the HRA may terminate the lease. The only remedy of the HRA for failure to pay the rent or any other violation of this lease shall be termination of this lease. -4- ' y Z7 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By: Lawrence R. Commers Its: Chairman By: William W. Burns Its: Executive Director STATE OF MINNESOTA) ) ss. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this day of August 1993, by Lawrence R. Commers, Chairman and William W. Burns, Executive Director, of The Housing and Redevelopment Authority in and for the City of Fridley, Minnesota a political subdivision of the State of Minnesota, on behalf of said Authority. Notary Public COLUMBIA PARK PROPERTIES By: A Managing Partner By: A Managing Partner STATE OF MINNESOTA) ) ss. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this day of August, 1993, by and -5- 2.8 , Managing Partners of Columbia Park Properties, a Partnership under the laws of the State of Minnesota on behalf of the Partnership. THIS INSTRUMENT WAS DRAFTED BY: BARNA, GUZY & STEFFEN, LTD. 400 Northtown Financial Plaza 200 Coon Rapids Boulevard Minneapolis, MN 55433 (612) 780 -8500 (MFH) mfh \hra.cpp.ala Notary Public 2.9 EXHIBIT A LEASEHOLD PROPERTY Lot 15 and all that part of Lot 7, Block 1, Fridley Plaza Center, Anoka County, Minnesota, lying easterly of the following described line: Commencing at the northwest corner of Lot 14, said Block 1; thence North 89 degrees 58 minutes 45 seconds East, along the north line of said Lot 14, a distance of 13.00 feet, to the point of beginning of the line to be described; thence North 0 degrees 47 minutes 15 seconds East a distance of 213.23 feet to a point on the line common to Lots 6 and 7, said Block 1, said point being 3.00 feet westerly from the southeasterly corner of said Lot 6, and said line there terminating. -7- d 2.10 EXHIBIT B REDEVELOPER PROPERTY Lot 14, Block 1, Fridley Plaza Center, according to the recorded plat thereof, and situate in Anoka County, Minnesota. -8- To be determined. EXHIBIT C OPTION PARCEL MM 2.1 A -,j Fridley I PlQZo Office Bldg 6401 University Ave. N.E. 3—ST—Brick A 4() Fourmies Ave. 2.12 E) L'Hl BIT D I Lj Ln Lo 11 P. -/ ParK 14- __.. -_ _. r o" TF V�Z Fridley Plaza Office Bldg. 6401 University Ave. N.E. 3—ST—Brick Fourmies Ave. Y. . . . . . ................... ep A- 1-1 2.13 E KF IIBIT E I 4 Lj LO ep A- 1-1 3.1 �� �- TO: WILLIAM W. BURNS, CITY MANAGER �� FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR CRAIG A. ELLESTAD, ACCOUNTANT SUBJECT: SCHOOL DISTRICT AGREEMENTS AND RETURNS DATE: JULY 301 1993 Attached you will find copies of the 1994 school district agreements that should be submitted to the HRA commission members at the AUGUST 12, 1993, meeting for their discussion and approval. These are one year agreements that are approved each year. If approved, these should go to the City Council meeting on August 16 for their approval. In anticipation that everything will go as planned, :I've attached the original documents that need to be signed by you and the Mayor. When signed, please return to me and I will forward to the appropriate School Districts for their approvals. Also, attached are the projected 1994 school district returns. The estimated total return for 1994, before delinquents, is $315,045.96. This is a decrease of 8% from the 1993 estimated return, before delinquents, of $338,913.17. The below table breaks down the changes from 1993 to 1994 for each school district: School Estimated Estimated Percent District . 1993 1994 Change 11 $ 17,685.71 $ 17,685.71 0% 13 $ 26,564.71 $ 2,697.50 <90 %> 14 $242,046.07 $242,046.07 0% 16 $ 52.616.68 $ 52.616.68 09.- TOTAL $338,913.17 $315,045.96 <8 >% The reason for the change in School District #13 is the termination of TIF District #4 - Johnson /Skywood. File : \WP \HRA \SD -ES794 F pU� F- N O O O S U N WO Q N W I 3.2 << ... 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LHH COMXC- C30ir ZZZZO < La > i HZ L LL Z 00 c 0 U U LL f! - Xi-+H Y.HVZ z i i 4i i Z ! i f�i L i i 31 O i f J ! i a7Jul i t 00> i f L3MR 1 I W i i r i i MMi9r•3MMMf9i<li•)MMMMMMMMMMM W. Z0 t D. 0-0, 0- 0•0,0,U0101 0.0- 010 t3 Ol010%0'0' LCZ i v: yW i \ \ \ \ \N. \ \\ \. \\ \ \ \ \ \ \ \\\ C[[H i L) F- f 0- 01ft.0 �G -0 ,a 10NNricacactr;NraNNN" CL00 i we t 00r7ww I.i rsw.I.a.+wwawww.+ww ;t CC i i; i r- NNNr - N 1, 0 0 w ww0 oio:caaimw0 4,2 TO: FRIDLEY H.RA FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES JULY 1993 ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES ADMINISTRATIVE OVERHEAD TOTAL ADMINISTRATIVE BILLING: OPERATING EXPENSES: . POSTAGE BY PHONE COPIER ALLOCATION JAN —JUNE 1993 TOTAL OPERATING EXPENSES: TOTAL EXPENDITURES — JULY 1993 File :1123DATAjHRAj7lFX9381LLwk1 Account #'s for HRA's Use r r Account #'s for City's Use 13,842.00 101 -0000- 341 -1200 250.00 101 - 0000 - 336 -30DO 460-0000-430-4330 14, 092.00 460- 0000 -430 -4332 67.23 460 - 0000- 430 -4335 264.23 236- 0000 - 336 -3000 331.46 s � M P • A t o t tu of d$f LU � W 7 t 0. z i f.- i ►= °a 2 W � 1 U t v 1 Q t f- r K N Z •R Q r 2 W S � yJ� O � W 001 G W K Q S z IL N u � aax W Q Ir 1 W 2 i m W W W W W W W W W W W W W W 1-- JJJJJJJJJJJJJJ NrrrrrrrrrrrF -rrN F.rr1_ F r1-►- l- rrrrrz OC W W W W W W W W W W W W W W `+ NNN�NJ(N N 40 N(A N N N NN M \ !vg Y Y V g!g J[ ZE V g J r r r r r J I J I J t J t t 1r 7 I r r t r • r r r 0;1 17 -j -j J J J J J J -m t J J J J QO 4coin co 1�N M1�.-N0 - - O HO NN N001-- 1t �a-O N1-O 1�Y1O U1�-paO. NNN��ON � I�YII�OOMPInPM1�InN M00 1� OMNOIt C-N aNMM• O0 ' O M °000°o mom 31m400oo°oo°0000°ooO °o O O O O O O O O O O O O O O O O ' 0 0 0 O O 0 0 0 0 0 0 0 0 0 0 0 1 I•• t t t•• I t•• t O O O O O_ 0 0 0 0 0 0 0 0 0 0 0 ey —�-� ����- �NNNNNN qj a- tea- .- e-- - -N M M M M M M M M M M M M M M M • • 1 • • • • 1 • 1 1 • t • 1 1 O O Co O O O O O O O O O O O Co O O o_ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N M AO 1.- /X1 P N� M•01,- O� M M M M M M M M a M M M M M M • • t 101pt m• O 0 •0• 0• ,• •pp/ O• 2/ sI mI mt pr m N N N N N N I N N N N N N N N N N M M M M M M M M M M M M M M M M A P A A P A A P P A P A P A P A M M M M M M M M M M M M M M M M 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 co co co co 00 co co co Go OP0OOO.aaaaaaaa co" aaaa O .O pNN �O r 2 W Q 0 0 asa 6 Q 00 m m 4.3 m a W N N W 8 /, ILN � O r z`N � K % r V •O r • r • U • • W 1 • O • • oe I • d 1 • • 1 • I • 1 • 1 1 • 1 • 1 • I • 1 • 1 • 1 • 1 • 1 • • 1 • 1 • 1 t 1 • 1 • 1 pe • 1 • 1 LIA t- N i W Z i LLI cee i OWC i t i W r Q iL v UA U N •8 W W OC J J t S W I N v � • r ce Z m i • Q f- r K N Z •R Q r 2 W S � yJ� O � W 001 G W K Q S z IL N u � aax W Q Ir 1 W 2 i m W W W W W W W W W W W W W W 1-- JJJJJJJJJJJJJJ NrrrrrrrrrrrF -rrN F.rr1_ F r1-►- l- rrrrrz OC W W W W W W W W W W W W W W `+ NNN�NJ(N N 40 N(A N N N NN M \ !vg Y Y V g!g J[ ZE V g J r r r r r J I J I J t J t t 1r 7 I r r t r • r r r 0;1 17 -j -j J J J J J J -m t J J J J QO 4coin co 1�N M1�.-N0 - - O HO NN N001-- 1t �a-O N1-O 1�Y1O U1�-paO. NNN��ON � I�YII�OOMPInPM1�InN M00 1� OMNOIt C-N aNMM• O0 ' O M °000°o mom 31m400oo°oo°0000°ooO °o O O O O O O O O O O O O O O O O ' 0 0 0 O O 0 0 0 0 0 0 0 0 0 0 0 1 I•• t t t•• I t•• t O O O O O_ 0 0 0 0 0 0 0 0 0 0 0 ey —�-� ����- �NNNNNN qj a- tea- .- e-- - -N M M M M M M M M M M M M M M M • • 1 • • • • 1 • 1 1 • t • 1 1 O O Co O O O O O O O O O O O Co O O o_ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N M AO 1.- /X1 P N� M•01,- O� M M M M M M M M a M M M M M M • • t 101pt m• O 0 •0• 0• ,• •pp/ O• 2/ sI mI mt pr m N N N N N N I N N N N N N N N N N M M M M M M M M M M M M M M M M A P A A P A A P P A P A P A P A M M M M M M M M M M M M M M M M 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 co co co co 00 co co co Go OP0OOO.aaaaaaaa co" aaaa O .O pNN �O r 2 W Q 0 0 asa 6 Q 00 m m 4.3 m a W N N W 8 /, ILN � O r z`N � K % r V •O r r _ i 5.1 Community Development Department P1ANmNG,DmsioN City of Fridley DATE: August 6, 1993 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Status of ECO Finnishing, Inc., Tax Increment Project Consistent with the HRA direction on July 8, 1993, Jim Casserly has been meeting with ECO Finishing, Inc., regarding tax increment financing assistance if a new TIF district is created for Eco Finishing, Inc. ECO Finishing, Inc., is proposing to construct a 29,000 square foot manufacturing building in the Great Northern Industrial Park. The owner has applied for a small business administration loan and is requesting tax increment financing assistance. A verbal update regarding the status of Casserly's work with the petitioner will be provided at the Thursday's meeting. BD:ls M -93 -443 The 6.1 000 n n n� K o rd i a k 3948 Central Ave. N.E., Minneapolis, MN 55421 n n n , Company 788-9651 781 -9375 it Real Estate n Property Management n Appraisals it Income Tax Service July 16, 1993 Bill & Karen Kwan 242 Mississippi St. N.E. Fridley, Minnesota 55432 Dear Mr. & Mrs. Kwan, At a July 8th meeting of the Fridley HRA a decision was made to prepare for the demolition of the Rice Plaza Center. This action, as you know, has been contemplated for many years and was finally made necessary as a result of numerous current issues. S. - ' -1 1• �- �� only required to provide 30 day notice the city has asked me to provide you with ample notice and work with you in every way possible to assist you in your efforts to relocate. If you need letters of referral, information about area vacancies or rates or if I can offer you any other information please contact me and I will be happy to help. We understand that you may choose to or need to relocate prior to Nove.mber 1st anu only ask that you keep I informed as to your plans and provide me with notice as to your projected vacancy date. I am sorry for the inconvenience which this may cause and I thank you for your cooperation. S ncerely, Jim Kordiak Building Manager � 6 i The .2 n n n Kordiak 3948 Central Ave. N.E., Minneapolis, MN 55421 n n n Company 788-9651 781 -9375 it Real Estate it Property Management it Appraisals it Income Tax Service July 16, 1993 Strom Company Inc. Mr John Radick 10505 Wayzata Blvd. Minnetonka, . Minnesota 55305 L Dear Mr. John Radick, GG � The n n n � 0.0 Kordiak 3948 Central Ave. N.E., Minneapolis, MN 55421 n nn Company 788'9651 781 -9375 it Real Estate it Property Management n Income Tax Service July 16, 1993 My Sisters Closet Mrs. Linda R. Cochrane 2074 -129th Ave. N.W. Coon Rapids, Minn. 55448 Dear Linda, At a July 8th meeting of the Fridley HRA a decision was. made to prepare for the demolition of the Rice Plaza Center. This action, as you know, has been contemplated for many years and was finally made necessary as a result of numerous current issues. 1 writing to grovide you and .• ,l - not-ice to vacate ygU bay at the Ri e Plaza el l• "ll•- 1993, While we arg w The 6.3 �1 i 3948 Central Ave. N.E., Minneapolis, MN 55421 n n n � Kordiak 788 -9651 781 -9375 n n n Company n Real Estate n Property Management it Appraisals n Income Tax Service July 16, 1993 L.A. Ventures, Inc. Mr. Arland Breyer 248 Mississippi St. N.E. Fridley, Minnesota 55432 Dear Arland, The n n n 000 Kordiak 3948 Central Ave. N.E., Minneapolis, MN 55421 ,,Ooo n n n Company 788-9651 . 781 -9375 it Real Estate it Property Management it Appraisals n Income Tax Service July 16, 1993 Anew Review Ms. Jeanne Sombrio 6548 University Ave. N.E. Fridley, Minnesota 55432 Dear Jeanne, At a July 8th meeting of the Fridley HRA a decision was made to prepare for the demolition of the Rice Plaza Center. This action, as you know, has been contemplated for many years and was finally made necessary as a result of numerous current issues. storaae at the Ric plaza Center affective November -� ..��G,,,� „-r 1st 1993 While we are only required to provide 30 day notice the city has asked me to provide you with ample notice and work with vo !j in avar” U113%I I rn I CO a a w cc m U. ad c 0 0 m 0 °o Ui N 69 I O <O IV 69 C C Y C O C C u Q a N a O W O N 69 m r Y O L m m L .O 'O 3 W CS M O L lL c O r CA a m m m O m C m L Im C Y co C O Z I x N r m a N O m C H C Y co C O CET C C m U � I Y 3 a a F 4¢ m LL 6.4 a° 0 7;1 Community Development Department Housim AND REDEVELOPMENT AUTHORITY City of Fridley DATE: August 6, 1993 r TO: William Burns, Executive Director of HRA O,4 FROM: Barbara Dacy, Community Development Director SUBJECT: Status of Mississippi Street Project Anoka County and City staff completed the final check list for the Mississippi Street project. While minor items remain to be completed, a majority of the project is done. The installation of the internally illuminated street- name. signs are delayed. Hopefully, they will be installed soon. I met with Mickey Carpenter from the. Target Northern Operations Center, and she was very complimentary of Anoka County and the work completed. We are still cooperating on the final landscaping adjustments pertaining to the Target property. Siah St. Clair and I are also very pleased with how the County preserved the large White Oak tree on the south side of Mississippi Street. We also are pleased with the adjustments made on the south side of Mississippi Street with the operation of the Dairy Queen drive - through and Rice Plaza. Vd- ave not yet received the final billing from Anoka County. When those figures arrive, they will be presented.to the HRA as part of its claims and expenses approval.. No action is needed on this particular item. At the May 20, 1993, John Meyer had requested information as to the maintenance responsibility of the lighting and landscaping as part of the Mississippi Street project. The City will be responsible for maintenance of the light fixtures.and any landscaping. Also recall that in the staff memorandums sent to the HRA for the May 20, 1993, meeting, staff had recommended that the HRA evaluate installing a smaller amount of landscaping -in the immediate vicinity of the intersection than what was originally planned as part of the University Avenue Corridor improvement. This suggestion was made in order for the HRA to evaluate the final costs of the street project and to evaluate it against the 1993 HRA budget. BD:ls M -93 -446 .., L ... ,. _ .. ......... .. ... _ .. n � r 8.1 V PM Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: August 5_, 1993 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Status Report on Housing Rehabilitation Programs We are pleased to report that 61 applications were received for the housing rehab programs. Of this number, 52 were selected through the pre - screening process. Attached for your review is a breakdown of the figures by program, as well as statistical data on the average income, average length of residency,. average household size, and the average age of the head of household. Grant is continuing to work with Jim Casserly on finalizing the legal documents for the-Home Mortgage Assistance, Home Improvement Loan, and Rental Rehabilitation Loan programs. We hope to have the agreements completed in the next two weeks and sent out to the respective financial institutions for execution. Also, the agreements for the Home Improvement Grant Program have been sent to ACCAP. After completing the necessary paperwork, Grant will submit the list of qualified applicants to ACCAP. ACCAP will be -responsible for performing inspections, work write -ups, and additional activities related to the rehabilitation work. Finally, Grant has contacted several individuals who have expressed interest in doing the rehab inspections. He plans.on conducting interviews the week of August 9, 1993. Those who have been selected will enter into a contract with the HRA. After the first group of. applications has been completely processed, we will advise you of any remaining program funds and the potential to solicit additional applications this year. 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O N N to cn cn cq h cn h 4 V sf 7 cn �' Pl cn N in vl 00 N p p < d O d a 01 •S ' N h 00 3r �°.a E.So m9 dt9 0 ao�o�rnp .o.o.o�p�aap�ao.��ao�o.a.ga $:v_RvER k8�! v�v�:v_ `Q: �i �vhO�N (� cfvh N �hO��t QN..� -� O tJ °r;u a O ..n .-� .r .r (� N cn �(rnl �cnl cn V' ty{' V N (� 0, 4 s O >' O 8 "n, a", HHH (Il HH H Vl c9HHNf Ht9H(AHH O .g S. �'� -�7'i It -1 x V! O O 8 �$ g g g 8 8 � �Jfl 95l III - in in .,4 9.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: August 6, 1993 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Fridley Town Square Project I met with Lowell Wagner on August 3, 1993, regarding the status of the Fridley Town Square redevelopment project in the northeast corner of University Avenue and Mississippi Street. Wagner advised me that Walgreens is* re- evaluating the location of the Walgreen store at the intersection.. Apparently, because of the lapse of time and change of personnel, Walgreens has decided to evaluate the project once again. Wagner stated that Walgreens wanted to consider an alternative development plan where the Walgreens building would be a stand- alone facility separate from the tenant space and Dairy Queen building. Wagner has prepared alternatives for Walgreens to consider. He also showed me three site plans for staff consider- ation. I advised him that I would support two of the three proposed amendments to the site plan which would separate the Walgreens building from the remainder of the development. I believe these adjustments would improve the traffic management on site and would -- serve to separate the prescription pick -up traffic from the shipping and receiving traffic. - Wagner also.confirmed that he and Don Fitch have verbally agreed to their business arrangements, although the final documents have not been signed. Wagner stated that he did have a signed lease for a video tenant which would occupy about half of the remaining space. Finally, Wagner was confident that he would obtain the necessary financial arrangements to complete the project. He is still hoping for a fall construction start. Wagner was to contact me as soon as Walgreens rendered its decision about the property and the revised site plan. BD:ls M -93 -444