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HRA 09/09/1993 - 6336HOUSING AND REDEVELOPMENT AUTHORITY MEETING THURSDAY, SEPTEMBER 91 1993 7:30 P.M. PUBLIC COPY P CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, SEPTEMBER 9, 1993, 7:30 P.M. Location: Council Chambers Fridley Municipal Center CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: July 8, 1993 (in August agenda packet) ACTION ITEMS: CONSIDER REQUEST TO ACQUIRE SUH PROPERTY. . . . . . . . 1.1 -1.6 CONSIDER LEASEHOLD AGREEMENT FRIDLEY PLAZA OFFICE BUILDING . . . . . . . . . . . . 2.1 -2.13 CONSIDER SETTLEMENT AGREEMENT WITH DON FITCH. . . . . . 3.1 -3.5 CONSIDER RESOLUTION MODIFYING REDEVELOP- MENT PLAN AND CREATING TIF DISTRICT #13 . . . . . . . . 4.1 -4.16 CONSIDER SCHOOL DISTRICT TURNBACK AGREEMENTS. . . . . . 5.1 -5.4 AUTHORIZE CHANGE ORDER NO. 1 TO LAKE POINTE DEVELOPMENT MAINTENANCE PROJECT. . . . . . . . . 6.1 -6.3 CLAIMS AND EXPENSES . . . . . . . . . . . . . . . . . . 7.1 -7.6 INFORMATION ITEMS: RICE PLAZA UPDATE . . . . . . . . . . . . . . . . . . . 8.1 -8.5 HOUSING PROGRAM STATUS . . . . . . . . . . . . . . . . . 9.1 -9.4 DISCUSS SCATTERED SITE ACQUISITION PROCESS. . . . . . .10.1 -10.7 LAKE POINTE MARKETING STATUS . . . . . . . . . . . . . .11.1 -11.10 FRIDLEY TOWN SQUARE UPDATE . . . . . . . . . . . . . . .12.1 OTHER BUSINESS ADJOURNMENT a° 0 1.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: September 1, 1993 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Consider Acquisition of Suh Property Robert C. Welle will be in attendance at the September 9, 1993, HRA meeting to request the HRA to purchase the Suh property or amend the redevelopment plan to allow the property to be sold to a third party. Mr. Welle has submitted a letter outlining the reasons for the request. Mr. Welle is the property manager for the multi - tenant building north of the Burger King. The HRA discussed acquisition of the Suh property at its May 9, 1991, meeting (minutes attached). The current HRA budget does not include expenditures for additional property acquisition for the southwest quadrant. The HRA has not discussed in detail development options for the property in the recent past because of other programming priorities. Consideration of development options for the property and identification of an implementation strategy is programmed for the next six to eight months. Recommendation Staff recommends that the HRA continue to abstain from negotiations to acquire the Suh property at this time. BD:ls M -93 -502 1.2 //,Aylkeliance Real Estate Services, Inc. August 27, 1993 Ms. Barbara Dacy Community Development Director City of Fridley 6431 University Avenue Northeast Fridley, MN 55432 RE: H.R.A. Meeting of September 9, 1993 Dear Barbara: As we discussed, I would like to attend the meeting of the Housing and Redevelopment Authority scheduled for Thursday, September, 9, 1993 and address its representatives regarding the Mississippi Row property which we represent. I request to be placed on the meeting agenda and to be allowed some time for discussion. For your review and consideration in advance of the meeting I have enclosed a letter on the subject matter which I wish to discuss. Thank you for your assistance and cooperation. Respectfully, Reliance Real Estate Services, Inc. l Robert C. Welle cc: Mrs. Shin Jae Suh Rand Tower • 527 Marquette Avenue South • Minneapolis, MN 55402 612 - 338-1000 • FAX 612 - 338 -8971 1.3 j j�/ Reliance Real Estate Services, Inc. August 27, 1993 Ms. Barbara Dacy Community Development Director City of Fridley 6431 University Avenue Northeast Fridley, MN 55432 Dear Barbara: Reliance Real Estate Services, Inc. represents the owners of the Mississippi Row property at 6410 -6440 University Avenue Northeast in Fridley. Although I do appreciate receiving notice and the agenda for the Housing & Redevelopment Authority meeting scheduled for August 12, 1993, 1 was disappointed to find myself as the only person present in the council chambers and that the meeting was canceled. The purpose of this letter is to go on record with the H.R.A. with the comments I had intended to make at that meeting. Attracting new tenants to Mississippi Row and retaining existing tenants has been adversely impacted by two situations: 1) limited access to the property due to the recent addition of a median on Mississippi Street and, 2) the perception that tenants will be forced to relocate in the near future as a result of condemnation by the H.R.A. A number of prospective new tenants have rejected the location specifically for those reasons. The existing Burger King franchisee has given notice that they will not renew their lease due to reduced sales following the change in access. They will continue to operate on a month -to -month tenancy while they search for an alternate location. They have refused to pay rent during that time and will pay operating expenses only. We have also contacted developers in an effort to find someone to redevelop the site and allow the owners of Mississippi Row to sell the property at its fair market value. We have been rejected by those developers for the reason that they have no interest in developing the °mixed use" project conceived by the H.R.A. In conclusion, we believe that the reduced access caused by the Mississippi Street project and the condemnation of properties surrounding the Mississippi Row property Rand Tower • 527 Marquette Avenue South • Minneapolis, MN 55402 612 -338 -1000 46 FAX 612 - 33&8971 j,4 Ms. Barbara Dacy August 27, 1993 Page 2 have materially diminished its value and use. On behalf of the owners we request that the H.R.A. purchase the property at its fair market value or amend the use plan to allow the property to be sold to a third party at its fair market value for its highest and best use. Your serious consideration'of this matter shall be appreciated. Respectfully, Reliance Real Estate Services, Inc. ZE yj_�� Robert C. Welle cc: Mrs. Shin Jae Suh V5 HOUSING & REDEVELOPMENT AUTHORITY MEETING MAY 9 1991 PAGE 7 Inc., for Lake Pointe maintenance; and the check register dated May 2, 1991. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. DISCUSSION OF SUH ACQUISITION PROPOSAL' Mr. Burns stated he met with Dr. and Mrs. Suh about two weeks ago. They came in with a proposal to sell the HRA their shopping center property to the HRA for $950,000. They also indicated at that time that the price might be negotiable. Additionally, they suggested that if the HRA did not intend to buy their property that the HRA provide some money for a facelift of their property. Mr. Burns stated he discussed the Suh's proposal with Leon Madsen, City Assessor. He asked Mr. Madsen to comment on the $950, 000 offer and showed Mr. Madsen the different methods the Suhs used for calculating the appraised value. It was Mr. Madsen's general reaction that the $950,000 offer was not a clear bargain for the HRA. Mr. Burns stated the position he had recommended to the HRA previously was the Suh property was not needed at this time C and that they were not interested in beginning negotiations with Dr. Suh, however, the Suhs could make an offer if they chose to do so. It is his recommendation that the HRA continue to abstain from negotiating a purchase with Dr. and Mrs. Suh. He also recommends the HRA not be involved in providing a facelift for the Suh property. He believed that any money that is put into that property now, they will have to eventually pay for later at the time the property is either condemned or acquired through negotiation. Also, it is logical to expect that the HRA's investment in property improvements be of a more permanent nature, not a temporary nature. Mr. George Borer, attorney for Dr. and Mrs. Suh, stated that Dr. Suh was not able to attend the meeting. He stated Mr. Burns has accurately relayed the conversations with the Suhs. As he has stated before, it is a fairness issue. They feel 12 years in the district is unfair. They believe the City's actions are damaging their clients and affecting the value of the property. Mr. Burns has clearly indicated to his client that the HRA has no desire to enter into negotiations. However, Mr. Burns said they could make an offer, and they have done that. Mr. Meyer stated he agreed with staff's recommendation. 1.6 HOUSING & REDEVELOPMENT AUTHORITY MEETING MAY 9 1991 PAGE 8 f Ms. Schnabel stated it appears the HRA is in agreement with staff's opinion and recommendation- -that the HRA is not interested in purchasing the Suh property and is not interested in offering money toward the improvement of that property at this time. Mr. Borer stated he would like to request that the Suh property be removed from the district. That request has already been formally responded to, but he would like it to be reconsidered. Mr. Herrick stated that some time ago, Mr. Burns asked him to review the request that Mr. Borer made on behalf of his clients. He believed the first question was if he felt the City or the HRA had any liability for a claim by the property owners that they have been adversely affected by the redevelopment plans of the HRA. Based on the research he did, it was his opinion that neither the City nor the HRA has any legal liability pertaining to the Suh property. Mr. Herrick stated the second question was whether or not he felt that the HRA should purchase the property. He answered that he did not feel there was any legal reason for the HRA to purchase the property unless the HRA thought it was economically feasible to do that, and they could make that decision. Mr. Herrick stated the third question had to do with eliminating the Suh property from the redevelopment district. Again, he did not see any legal requirement or practical reason for the HRA to eliminate it from the district. He stated there might be some problem with removing the property from the district, because the property was pledged for outstanding bonds and the bondholders might have some objection that their security was being diminished.. Mr. Borer stated that it is a pure fairness issue, and they want the HRA to know that being in the redevelopment district is affecting long term tenants. Mr. Borer thanked the HRA for their time. 6. UPDATE ON DAIRY QUEEN ACQUISITION PROCESS Ms. Dacy stated the necessary paperwork has been filed to start the quick -take action. A check in the amount of $125,000 payable to the District Court Administrator was included in the May check register which the HRA approved. Someone from the City Attorney's office will be at the courthouse to participate in the hearing at the end of May to appoint the commissioners and, after that, a hearing date will be set to start the process of evaluating the property. Once 2.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY DATE: September 1, 1993 City of Fridley T0: William Burns, Executive Director of MA FRO14: Barbara Dacy, Cc=xnity Development Director SUBJECT: Consider Amended leasehold Agreement for Fridley Plaza Office Building Parking Lot Backarcuzd On February 13, 1992, the BRA approved a third amendment to the leasehold agreement between the BRA and Columbia Park Properties to correct a legal description error. At that time, the attorney for Columbia Park Properties, Mike Hurley, suggested that since the amendment was the third amendment, a new leasehold agreement should be prepared to incorporate all previous agreements. Further, Columbia Park Properties hired Frauenshuh Companies to manage the office building. Staff has met Frauenshuh Companies on a number of occasions regarding the ongoing maintenance issues including snow removal, parking lot maintenance, and lawn and irrigation maintenance. Norm: of the previous leasehold agreements specifically stated maintenance responsibilities. These two factors have led both staff and Columbia Park Properties to suggest a revised leasehold agreement. Since the Fridley Plaza Office Building was constructed, the City has been responsible for maw the irrigation system to the boulevard areas along Fourmies Avenue and 5th Street, as. well as to the vegetation in the Plaza area. Further, the City has been responsible for the lawn and vegetation maintenance in these.area as well as snow removal and miscellaneous parking lot items. 'Ihe original lease agreement stipulated an $800 per month rental payment. As the BRA will recall, the former owners of the property were in arrears and an agreement was made to waive $9,200 in delinquent rental payments upon payment of $10,000 and satisfactory payment of the rent for three years until April 1, 1994. The current owners are paying the rent on time. Um 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. 2.2 Amended Leasehold Agreement for Fridley Plaza Office Building Parking Lot September 1, 1993 Page 2 Paragraph 6 of the proposed lease specifies maintenance responsibilities. Columbia Park Properties w111 be responsible for snowplowing the parking lot, and the City will be responsible for removing the piles of snow within 72 hours. M= 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. Theme 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. Me 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 BRA, as owner, 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. Staff reccmmsnds that the MA authorize the Chairperson and Executive Director to execute the revised leasehold agreement. Further, staff rinds the BRA authorize staff to execute contracts to have the parking lot sealcoated and striped in cooperation with the property owner as soon as possible. Because action on this item will occur in September, it may be too cold to sealcoat this month. Staff will arrange to sealcoat as soon as possible in the 1994 construction season. BD:ls M -93 -496 2.3 REIRINED COPY AMENDED AND RESTATED LEASEHOLD AGREEMENT This Amended and Restated Leasehold Agreement, entered into this day ofts11, 1993, by and between THE HOUSING AND REDEVELOPMENT AUTHORITT"IR..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 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- 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 Parceldt::::::±::<:::b�►::�ra deseribed the -HRA agrees toremeve eat - heir sole (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- 2.7 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: STATE OF MINNESOTA) ) ss. COUNTY OF ANOKA ) A Managing Partner 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 Z9 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- 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 2.11 met., Fridley Plaza Office Bldg. 6401 University Ave. N.E. 3—ST—Brick 7--- el// -C 1rAI& //0 1) Fourmies Ave. 2.12 D Z a) a) LO Fr I idley Plaza Office Bldg. 6401 University Ave. N.E. 3 —ST —Back -F .7, Rourmies Ave. 2.13 E KP IIBIT E I I Lij V a) a) Lo Ih Ih r � 3.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: September 1, 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. Jim Casserly has also reviewed the agreement and agrees with the proposed change. 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:ls M -93 -495 r i 3.2 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. 3.3 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,•feal 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 BY: Its: ERNEST L. FITCH MURIEL K. FITCH (signatures continued on next page) -2- (signatures continued from previous page) 0831D/052793 WE DONALD A. FITCH JUDITH A. FITCH 3.4 ROBERT A. GUZY BERNARD E. STEFFEN RICHARD A. MERRILL DARRELL A. JENSEN JEFFREY S. JOHNSON RUSSELL H. CROWDER JON P. ERICKSON LAWRENCE R. JOHNSON DAVID A. COSSI THOMAS P. MALONE MICHAEL E. HURLEY SHARON L. HALL VIRGIL C. HERRICK HERMAN L. TALLE Bf-10 U3 Barna, Guzy & Steffen, Ltd. ATTORNEYS AT LAW 400 Northtown Financial Plaza 200 Coon Rapids Boulevard Minneapolis, MN 55433 Wr.4 "s80D-8i50e t Line:X 04V) 8W]25136 July 9, 1993 Barbara Dacy City of Fridley 6431 University Ave NE Fridley, Minnesota 55432 Re: Fridley Housing & Redevelopment v. Fitch: Our File No. 42001 -002 Dear Barb: 3 ■5 AMELA M. HARRIS CHARLES M.SEYKORA WILLIAM M. HANSEN DANIEL D. GANTER, JR. BEVERLY K. DODGE GREGG V. HERRICK JAMES D. HOEFT JOAN M. QUADE SCOTT M. LEPAK STEVEN L. MACKEY DAVID M. WEIGEL ROBERT C. HYNES 1935 -1993 Enclosed is a draft of a settlement prepared by Bradley Martinson which I understand from Virg conforms with agreement reached in a meeting between Don Fitch, Bill Burns, Virgil and Brad Martinson a couple of days after your deposition was started. I do not know if you attending the meeting. It needs to be executed by someone who has authority to sign for the Housing and Redevelopment Authority. I would appreciate it if you would obtain that signature on all the copies enclosed, and return them to me. The document will then go back to Bradley Martinson for the signature of the Fitches. A Stipulation has been signed by counsel and sent to the District Court asking the Court to extend the Scheduling Order in this case to allow time for this settlement to be completed. Our pending Motion for Summary Judgement, as well as the depositions that had previously been scheduled will be held in abeyance pending settlement. If you have any queptions, Barb, please give me or Virgil a call. rA �� Encl An Equal Opportunity Employer a 4.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY DATE: September 1, 1993 City of Fridley TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Consider Resolution Modifying the Redevelopment Plan and Creating Tax Increment District No. 13 for ECO Finishing, Inc. Proposed Request ECO Finishing, Inc., has submitted a tax increment financing application to request assistance for the construction of a 29,000 square foot manufacturing facility. ECO Finishing, Inc., is an expansion of Cooperative Plating, Inc., now located in St. Paul. The company proposes to construct a plating and metal finishing job shop. The proposed facility is located at the northwest corner of 51st Way and Industrial Boulevard. The estimated project cost is $2,500,000. It is estimated that 30 new jobs will be created with the possibility of expansion to 80 employees,in five years. Proposed Assistance ECO Finishing, Inc., has filed for a small business administration loan and is requesting tax increment assistance from the HRA. In order to provide tax increment financing assistance, an economic development district is proposed to be created. Over the life of the district (approximately 9 -11 years), about $145,000 of available tax increment will be generated. The present value of the $145,000 in 1993 is $83,000. The assistance would be provided to ECO Finishing, Inc., through "the pay -as- you -go" method. The amount of assistance is well within the guidelines at 3% of the project cost. Proposed Tax Increment Financing Plan Enclosed with this memo is a copy of the TIF No. 13 plan. Appro- priate notifications to Independent School District No. 13 and Anoka County have been completed. No adverse comments have been received from Independent School District No. 13, and I made a presentation to the Anoka County Board on August 25, 1993. The 4.2 ECO Finishing, Inc. September 1, 1993 Page 2 City Council will be conducting a hearing on the creation of the tax increment district at its September 13, 1993, meeting. No adverse comments from Anoka County are anticipated. Recommendation Staff recommends the HRA approve the enclosed resolution authorizing modification of the redevelopment plan and creation of Tax Increment District No. 13. BD:ls M -93 -503 4.3 RESOLUTION NO. A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 TO REFLECT INCREASED PROJECT COSTS AND INCREASED GEOGRAPHIC AREA WITHIN REDEVELOPMENT PROJECT NO. 1 AND MODIFYING THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NO. 1 THROUGH NO. 12 TO REFLECT INCREASED PROJECT COSTS AND INCREASED GEOGRAPHIC AREA WITHIN REDEVELOPMENT PROJECT NO. 1 AND ESTABLISHING PROPOSED TAX INCREMENT FINANCING DISTRICT NO. 13 AND APPROVING AND ADOPTING THE PROPOSED TAX INCREMENT FINANCING PLAN RELATING THERETO. BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority "), as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority modify the Modified Redevelopment Plan for Redevelopment Project No. 1 to reflect increased project costs and increased geographic area, pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047, inclusive, as amended and supplemented from time to time. 1.02. It has been further proposed that the Authority modify the Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 12 to reflect increased project costs and increased geographic area within Redevelopment Project No. 1, pursuant to Minnesota Statutes, Section 469.174 through 469.179, inclusive, as amended and supplemented from time to time. 1.03. It has been further proposed that the Authority approve the proposed Tax Increment Financing Plan for proposed Tax Increment Financing District No. 13 pursuant to and in accordance with Minnesota Statutes, Section 469.174 to 469.179, inclusive, as amended and supplemented from time to time. 1.04. The Authority has investigated the facts and has caused to be prepared with respect thereto, a Modified Redevelopment Plan for Redevelopment Project No. 1 to reflect increased project costs and increased geographic area; Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 12 to reflect increased project costs and increased geographic area within Redevelopment Project No. 1; and a proposed Tax Increment Financing Plan for proposed Tax Increment Financing District No. 13, defining more precisely the property to be included, the public costs to be incurred and other matters relating thereto. 4.4 Page 2 - Resolution No. 1.05. The Authority has performed all actions required by law to be performed prior to the approval and adoption of the Modified Redevelopment Plan for Redevelopment Project No. 1, of the Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 12, and of the proposed Tax Increment Financing Plan for proposed Tax Increment Financing District No. 13. 1.06. The Authority hereby determines that it is necessary and in the best interests of the City and the Authority at this time to approve and adopt the Modified Redevelopment Plan for Redevelopment Project No. 1 to reflect increased project costs and increased geographic area; to approve and adopt the Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 12 to reflect increased project costs and increased geographic area within Redevelopment Project No. 1; and to approve and adopt the proposed Tax Increment Financing Plan for proposed Tax Increment Financing District No. 13. Section 2. Findings. 2.01. The Authority hereby finds that the assistance to be provided through the adoption and the implementation of the Modified Redevelopment Plan, Modified Tax Increment Financing Plans and proposed Tax Increment Financing Plan are necessary to assure the development and redevelopment of Redevelopment Project No. T. 2.02. The Authority hereby finds that the Modified Redevelopment Plan, Modified Tax Increment Financing Plans and proposed Tax Increment Financing Plan conform to the general plan for the development and redevelopment of the City as a whole in that they are consistent with the City's comprehensive plan. 2.03. The Authority finds that the Modified Redevelopment Plan, Modified Tax Increment Financing Plans and proposed Tax Increment Financing Plan afford maximum opportunity consistent with the sound needs of the City as a whole for the development and redevelopment of Redevelopment Project No. 1 by private enterprise and it is contemplated that the development and redevelopment thereof will be carried out pursuant to redevelopment contracts with private developers. Section 3. Modification of the- Redevelopment Plan for Redevelopment Protect No 1. 3.01. The modifications to the Modified Redevelopment Plan for Redevelopment Project No. 1 to reflect increased project costs and increased geographic area is hereby approved and adopted by the Commissioners of the Authority and is forwarded to the Fridley City Council for public hearing, review and approval. Page 3 - Resolution No. 4,5 Section 4. Modification of the Modified Tax Increment Financing Plans for Tax Increment Financing Districts No 1 through No 12. 4.01. The modifications to the Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 12 to reflect increased project costs and increased geographic area within Redevelopment Project No. 1 are hereby approved and adopted by the Commissioners of the Authority and are forwarded to the Fridley City Council for public hearing, review and approval. Section 5. Approval of the Tax Increment Financing Plan and Establishment of Proposed Tax Increment Financing District No 13. 5.01. The establishment of proposed Tax Increment Financing District No. 13 within Redevelopment Project No. 1 and the proposed Tax Increment Financing Plan relating thereto are hereby approved and adopted by the Commissioners of the Authority and are forwarded to the Fridley City Council for public hearing, review and approval. Section 6. Filing of Plans. 6.01. Upon approval and adoption of the Modified Redevelopment Plan, the Modified Tax Increment Financing Plans and the proposed Tax Increment Financing Plan (collectively the "Plans "), the Authority shall cause said Plans to be filed with the Commissioner of Revenue. PASSED AND ADOPTED-BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS 9TH DAY OF SEPTEMBER, 1993. LAWRENCE R. COMMERS - CHAIRPERSON ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR 4.6 Casserly Molzahn & Associates, Inc. 215 South 11th Street, Suite 300 • Minneapolis • Minnesota 55403 Office (612) 342 -2277 • Fax (612) 334 -3382 M E M O R A N D U M TO: City of Fridley FROM: James R. Casserly Mary E. Molzahn DATE: August 12, 1993 RE: Rosenblum (Eco Finishing, Inc.) Project/ Proposed Tax Increment Financing District No. 13 Victor Rosenblum is contemplating the construction of a 25,000 square foot office /manufacturing /warehousing facility on the corner of 51st Way and Industrial Boulevard. The project cost will be approximately $2.5 million. Mr. Rosenblum has retained Bridgewater Financial Group to assist with the project financing which includes the use of an SBA financing program as well as seeking assistance from the Fridley Housing and Redevelopment Authority. The Redeveloper's request is for 5% of the project cost which would be $125,000 and they were looking forward to receiving the assistance at the beginning of the project. Staff has explained that the assistance would be payable over time in the form of a revenue note and has further explained that the project does not generate enough new value to provide the requested amount of assistance. If established this year, the Tax Increment District would terminate in the year 2004. Over the nine years that the new improvements generated taxes, the Redeveloper would pay total taxes of approximately $400,000. However, the estimated tax increment is estimated to be approximately $250,000. From that is deducted the City's normal administrative expenses of approximately $25,000 and an LGA /HACA impact adjustment of approximately $75,000. The available tax increment, then, amounts to approximately $150,000, which, using a 9% present value rate, has a value in 1993 dollars of approximately $86,000. Deborah Gustafson, has indicated that and hopes that the request. JRC,MEM /db 4 -? the president of Bridgewater Financial Group, this level of assistance would be very.helpful HRA and the City will be receptive to their 4.8 AS MODIFIED SEPTEMBER 27, 1993 TAX INCREMENT FINANCING DISTRICT NO. 13 (ROSENBLUM) Land Acquisition $ 250,000 Administrative Fees 20.000 Total $ 270,000 Maximum Estimated Total Bonded Indebtedness* $ 315,000 *This amount includes capitalized interest in an amount sufficient to pay interest on the bonds from the date of issue until the date of collection of sufficient tax increment revenues to meet scheduled interest payments when due. Subsection 1.10. Public Improvements and Facilities Within Redevelopment Project No. 1_ Publicly financed improvements within Redevelopment Project No. 1 include but are not limited to: a. The acquisition and sale and /or lease of the parcels identified in Subsection 1.7. hereof; b. Soil corrections, including excavation and backfill; C. Installation and /or upgrading of utilities and other public improvements; d. Development of proper traffic circulation patterns and improved ingress and egress on public and private roadways; e. Funding of the Reserve Program; and f. Other authorized uses as provided by State law. (The following amendment of Subsection 1.10 to the Modified Redevelopment Plan was approved November 18, 1985.) Additional public improvement costs to be incurred within Redevelopment Project No. 1 and to be financed by tax increments derived from all tax increment financing districts within Redevelopment Project No. 1 are estimated to be: Land Acquisition $3,500,000 Streets, Intersections, Walkways and Lighting 4,100,000 Parking Facilities 1,500,000 1 - 18 4.9 SECTION XIV TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 13 (ROSENBLUM) Subsection 14.1. Statement of Obiectives. See Section I, Subsection 1.5. Statement of Objectives. Subsection 14.2. Modified Redevelopment Plan. See Section I, Subsections 1.2. through 1.15. Subsection 14.3. Parcels to be Included. The boundaries of Tax Increment Financing District No. 13 are described on the attached Exhibit XIV -A and illustrated on Exhibit XIV -B. Subsection 14.4. Parcels in Acquisition. The Authority may publicly acquire and reconvey any or all of the parcels'in Tax Increment Financing District No. 13 identified on the attached Exhibit XIV -A. The following are conditions under which properties not designated to be acquired may be acquired at a future date: (1) The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of the Tax Increment Financing Plan; and (2) Such acquisition will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 14.5. Development Activity for which Contracts have been Signed. As of the date of adoption of the Tax Increment Financing Plan, the City intends to enter into a Development Agreement with the following developer: Victor and Marilyn Rosenblum, for the construction of a 25,000 square foot manufacturing /office facility with an estimated market value of $875,000. Construction is expected to be completed in 1994. . Subsection 14.6. Specific Development Expected to Occur. At this time it is anticipated that a facility providing 25,000 square feet of manufacturing /office space will be constructed. 14 - 1 4.10 Subsection 14.7. Prior Planned Improvements. The Authority shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of district enlargement with a listing of all properties within Tax Increment Financing District No. 13 for which building permits have been issued during the eighteen (18) months immediately preceding approval of the Tax Increment Financing Plan by the Authority. The county Auditor shall increase the original tax capacity of Tax Increment Financing District No. 13 by the tax capacity of each improvement for which the building permit was issued. If said listing does not accompany the aforementioned request or notice, the absence of such listing shall indicate to the County Auditor that no building permits were issued in the eighteen (18) months prior to the Authority's approval of the Tax Increment Financing Plan. Subsection 14.8. Fiscal Disparities. The Authority hereby elects the method of tax increment computation.set forth in Minnesota Statutes, Section 469.177, Subdivision 3, clause (a) if and when commercial /industrial development occurs with Tax Increment Financing District No. 13. Subsection 14.9. Estimated Public Improvement Costs. The estimated costs associated with Redevelopment Project No. 1 are listed in Section I, Subsections 1.9 and 1.10. Subsection 14.10. Estimated Amount of Bonded Indebtedness. It is anticipated that $315,000 of bonded indebtedness could be incurred with respect to this portion of Redevelopment Project No. 1. Pursuant to Minnesota Statutes, Section 469.178, Subdivision 1, General Obligation Tax Increment Bonds may be used as required to amortize the costs identified in Section.I, Subsections 1.9 and 1.10. The City reserves the right to pay for all or part of the activities listed in Section I, Subsections 1.9. and 1:10. relating to Redevelopment Project No. 1 as tax increments are generated and become available. Subsection 14.11. Sources of Revenue. The costs outlined in Section I, Subsection 1.9. will be financed through the annual collection of tax increments. Subsection 14.12. Estimated Original and Captured Tax Capacities. The tax capacity of all taxable property in Tax Increment Financing District No. 13, as most recently certified by the Commissioner of Revenue of the State of Minnesota on January 2, 1993, is estimated to be $11,836. The estimated captured tax capacity of Tax Increment Financing District No. 13 upon completion of the proposed improvements on January 2, 1996 is estimated to be $26,176. 14 - 2 012 004 --:006Z 612-334-3382 CASSERL -YMOL- ZAHNFL I NT 479 P02 SEP 01'93 11:43 4.11 Subsection 14.13. Tax Capacity Rate• The current total tax capacity rate is 111.355$. Subsection 14.14. Tax Increment., Tax increment has been calculated at approximately $29,859 upon completion of the improvements assuming a static tax capacity rate and a valuation increase of zero percent (0%) compounded annually. Subsection 14.15. Type of Tax Increment Financing District. Tax Increment Financing District No. 13 is, pursuant to Minnesota Statutes, Section 469.174, Subdivision 12, an Economic Development District. Subsection 14.16. Duration of Tax Increment Financing District. The duration of Tax Increment Financing District No. 13 is expected to be nine (9) yearn from receipt of the first tax increment or eleven (11) years from approval of the Tax increment Financing District, whichever is less. The date of receipt of the first tax increment is estimated to be July, 1996. Thus, it is estimated that Tax Increment Financing District No. 13, including any modifications for subsequent phases or other changes, would terminate in the year 2004. Subsection 14.17. Estimated impact an other Taxing Jurisdictions. The estimated impact on other taxing jurisdictions assumes construction would have occurred without the creation of Tax Increment Financing District No. 13. if the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions its $0 due to the fact that the financing would not have occurred without the assistance of the City, the attached Exhibit XIV -E reflects the estimated impact of Tax Increment Financing District No_ 13 if the "but for" test was not met. Subsection 14.18. Modification gff Tax Increment Financing District and/or Tax Increment Financing Plan. As of September 27, 1993, no modifications to Tax Increment Financing District No. 13 or the Tax Increment Financing Plan therefore has been made, said date being the date of initial approval and adoption thereof by the City Council. 14 - 3 4.12 EXHIBIT XIV -A PARCELS TO BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 13 ROSENBLUM AS ORIGINALLY ADOPTED SEPTEMBER 27, 1993 P.I.N. 27- 30 -24 -12 -0002 XIV -A -1 EXHIBIT XIV —B 4.13 BOUNDARY MAD OF TAX INCREMENT FINANCING DISTRICT NO. 13 N //2 SEC. 27, r 30, R.24 Ir C/TY OF FR/DLEY rya to N hq ONNER � , /. /,,�. T .._•Nr... ;:�� GREAT "' � 'ouRLOT rio i�Q .,f/. _._ THERN la � � �t0► o is C 1 .� C] r '/ Jboo) j Q • ` ,,II 6 • 1V i J r •t7 I ;f"VTIOT (I] OUnQT 17 TLOT AA . .rac /' i '•td ounoT ~� O&TIOT �.� :l? -.rt 5 t!JP.- W.AY'. T• . r; ..r+•�.. , ' �,,, /ND f o TR/ L(,, I?ypN� z /O o 1 �r , 1. 1:'•. f : r I (Il (/1 S° t r r tit �1I Donor •• °:•rz••r `• Q • ounOT 16 CEN 7 ER 1 1 E ♦ . OUTLOT Y 211 Z7— fir. T( «'„ 51 ST « WAY~ :•tiT(rrT �• //1 AG �, r OI 1 A i � <, rO ' • f 1 -- ; �- - -- -- NO, 79 Q) _ 1 6 ) , 14 i- 1 1 9. I'll 11 N (/N /TEO 51 1%14 O/ AiLIE.P /CA � ` � 004 •. ZE Sec. 27 1 SEC. ?7 1 24 3 13 XIV —B -1 ` 612 334 3382 612- 334 -3382 CASSERLYMOLZAHNFLINT 479 P03 SEP 01193 11:44 EXHIBIT XIV -C CASH FLOW ANALYSIS FOR TAX INCREMENT FINANCING DISTRICT. NO 4A CITY OF FRIDLEY. MINNESOTA PROPOSED ROSENBLUM PROJECT $35.00 /SQUARE FOOT ESTIMATED MARKET VALUE 9.002 PV RATE ORIGINAL ESTIMATED CAPTURED ESTIMATED LESS: LESS; AVAILABLE PRESENT VALUE ANALYSIS TAX TAX TAX TAX ADMIN LGA/HACA TAX SEMI ANNUA CUWLATIVE DATE CAPACITY CAPACITY CAPACITY INCREMENT EXPENSES IMPACT INCREMENT BALANCE BALANCE 12 /1993 11,836 11,836 0 0 0 0 0 0 0 6/ 1994 12,151 12,151 0 0 0 0 0 0 0 12 /1994 12.151 121151 0 0 0 0 0 0 0 6/ 1995 12,474 38.650 0 0 0 0 0 0 0 12 / 1995 12,474 38,650 0 0 0 0 0 0 0 6 / 1996 1218% 38,650 26,176 14,574 1,457 4,581 8,536 61850 6,850 12 / 1996 12.SM 38.650 26.176 14,574 1,457" 4,581 8,536 6,555 13.404 6 / 1997 13,146 38,650 25,844 14,390 1,439 4,523 8,428 6,193 19,598 12 / 1997 13,146 38,650 25,844 14,390 1,439 4,523 8,428 5,926 25,524 6 / 1998 13,496 38,650 25,SD4 14,200 1,420 4,463 8,317 6,S96 31,120 12 / 1998 13,496 38,650 25,504 14,200 1,420 4,463 8,317 5,355 35,476 6 / 1999 13,855 38,650 25.154 14,005 1.401 4.402 8.203 5.055 41,530 12/ 199.9 13,855 38,650 25,154 14,005 1,401 4.402 8.203 4,837 46,367 •6*/ 2000 14,223 36,650 24,795 13,805 11361 4,339 81086 4.563 50,930 12 / 2000 14.223 38.650 24.795 13.805 1.381 4,339 8,086 4,366 55.296 6/ 2001 14.601 38.650 24,427 13,600 1,360 4,275 7,966 4,116 59.412 12 / 2001 14,601 38,650 24,427 13,600 1,360 4,275 7,966 3,939 63,350 6/ 2002 14.990 38,650 24,049 13.390 1,339 4,209 7.842 3,711 67.061 12 l 2002 14,990 38,650 24,049 13,390 1.339 4.209 7,842 3451 70.612 6 / 2003 15,388 38,650 23,660 13,173 1,317 4.141 7.716 3.343 73,955 12 / 2003 15,38E 38,650 23,660 13.173 1,317 4,141 7,716 3,199 77,154 6 / 2004 151798 38,650 23,262 12,951 1129$ 4,071 7.586 3.010 80.164 12 / 2004 15,798 38,650 23,262 12,951 1,295 4,071 7,586 2,880 83,044 248.179 24.818 78,005 145,356 83.044 83.044 PAY 19M MARKET VALUE 227.100 PAY 1994 MARKET VALUE 257.300 PAY 1994 TAX CAPACITY 4.602 11.836 ESTIMATED MARKET VALUE 875.000 MARKET VALUE /SQUARE FOOT 35.00 SQUARE FOOTAGE 25,000 SF CONSTRUCTION 1994 VALUATION 1995 TAXES PAYABLE 1496 ESTIMATED TAX CAPACITY 3.002 4.602 38,650 PAY 1993 TAX RATE 1.11355 ESTIMATED TAXES 43.039 ESTIMATED TAKES /SQUARE FOOT 1.72 ADMIN EXPENSES 10.00% INFLATION 0.00% PRESENT VALUE RATE 6/1993 9.002 ECONOMIC FACTOR 1.02660 * PAY 1992 MARKET VALUE PETITIONED; $257,300 IS THE RESULTING STIPULATED VALUE PAY 1993 MARKET VALUE OF $294.100 HAS BEEN PETITIONED; VALUE UNDETERMINED; ASSUME PAY 1992 STIPULATED VALUE PAY 1994 MARKET VALUE UNDETERMINED AS A RESULT OF UNRESOLVED PAY 1993 PETITION; ASSUME PAY 1992 STIPULATED VALUE ROSE1 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES 01- Sep -93 XIV4•C -1 4.15 EXHIBIT XIV -D "BUT FOR" ANALYSIS Victor and Marilyn Rosenblum are proposing to develop a manufacturing /office facility in the City of Fridley near the intersection of 51st Way and Industrial Boulevard. The proposed development includes an approximate 25,000 square foot manufacturing /office facility. This development will provide approximately 30 additional employment opportunities for residents of the City and surrounding area, and will increase the City's tax base by approximately $625,000. However, due to the high costs of and acquisition and site preparation, the project would not be economically feasible without City assistance. XIV -D -1 612 J34 3382 S 12 -334 -3382 CRSSERL- YMOLZAHNFL I NT 479 P 04 EEP 01193 11:45 4.16 EXHIBIT XIV -E ESTIMATED IMPACT OF TAX INCREMENT FINANCING DISTRICT NO. 13 ON OTHER TAXING JURISDICTIONS ENTITY TAX BASE City of Fridley 27,678,198 County of Anoka 142,241,295 ISD #13 151560,947 IMPACT ON TAX BASE IMPACT ON TAX CAPACITY RATE --------------------- - - - - -- TAX CAPACITIES DISTRICT --------------------------- RATE -- - - -- AS % OF ORIGINAL ESTIMATED CAPTURED TOTAL --------------------------------------------- 11,836 38,650 26,814 0.097% 11,836 38,650 26,814 0.019% 110836 38,650 26,814 0.172% IMPACT ON TAX CAPACITY RATE --------------------- - - - - -- POTENTIAL 1: OF TAX TOTAL INCREMENT 14% 4,133 29% 8,789 529- 15,590 5% 1,347 100% 29,859 TAX CAPACITY RATE INCREASE 0.0159d 0.006% 0.100$ * Assumes the construction would have occurred without the creation of a Tax Increment Financing District. If the Construction is a result of Tax Increment Financing, the impact is $0. XIV —E -1 CURRENT TAX CAPACITY ENTITY RATE --------------------------------- City of Fridley 0.15412 County of Anoka 0.32779 ISD #13 0.58142 Other 0.05022 1.11355 POTENTIAL 1: OF TAX TOTAL INCREMENT 14% 4,133 29% 8,789 529- 15,590 5% 1,347 100% 29,859 TAX CAPACITY RATE INCREASE 0.0159d 0.006% 0.100$ * Assumes the construction would have occurred without the creation of a Tax Increment Financing District. If the Construction is a result of Tax Increment Financing, the impact is $0. XIV —E -1 5.1 TO: WILLIAM W. BURNS, CITY MANAGER Percent District 1993 1994 Change FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR 0% CRAIG A. ELLESTAD, ACCOUNTANT $ 2,697.50 SUBJECT: SCHOOL DISTRICT AGREEMENTS AND RETURNS DATE: JULY 30, 1993 $ 52.616.68 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 0% 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. 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N N Q 2T N N a O ?w � J ` O 0 a`0 a`O V co 5.3 = § § 2 § § ( a k k � § / 7 ■ � \ a ) d \ FA § § � � \ � � 5.4 . � � B �- A� s 1 moo§ J 0 o . 2 faas co E 0 , r- 0 � / £ | I ■ :s - _I c , ■ ■- CL § $ 2 a 2 ; ■ 2 ) k 4 _ ■�� vr ®mo 0 44 ) $ -$ CL ■ ■ 0 1. 0 as& ff CL 2 a a • ©§ ■ a. / | s L 2 2§ k a � . 2 . ■ ! � / 2 a o . ■ � R 0 E 7 $ ] I � k [ ° § $ f o | 4 7 .6 � �� E 2 § A,o _- J § E 2 c 2$ $ $ § §COL a 2 ■ ■ a & v ® a [ ■ - ° k k 2 CL k B B/ £ ■ %� a - �- g ¥- i i ! - ■ ®£ e 22) 22 /f K �a SCIL �3 �k I� §3� 4 ■ � o E ■ o ■ 7 ■ � \ a ) d \ FA § § � � \ � � 5.4 r � i 6.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: August 11, 1993 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Change Order No. 1 to Lake Pointe Development Maintenance Project No. 244 The Finance Department has determined that the Lake Pointe maintenance contract is subject to sales tax under a recent state law imposing sales tax on a variety of governmental unit purchases. The change order identifies the sales tax for the contract as $1,571.25. This amount equates to 6 1/2% of the original contract amount of $24,173.00. Staff recommends that the HRA move to authorize Change Order No. 1 to permit payment of sales tax as required by state law. BD:ls M -93 -451 CITY OF FRIDLEY ENGINEERING DEPARTMENT 6431 UNIVERSITY AVENUE N.E. FRIDLEY, MN 55432 August 16, 1993 6.2 Isaacson Lawn Care 10515 County Road 116 Rogers, MN 55374 SUBJECT: Change Order No. 1, Lake-Pointe Development Maintenance, Project No. 244 Gentlemen: You are hereby ordered, authorized, and instructed to modify your contract for the Lake Pointe Development Maintenance Project No. 244 by adding the following work: Addition: Item Part Quantity Price Amount 1. Sales Tax Lump Sum $1,571.25 $1,571.25 TOTAL ADDITIONS .................:'� TOTAL CHANGE ORDERS: Original Contract Amount ....... ............................... $24,173.00 Contract Additions - Change Order No.1 ............................... $1,571.25 REVISED CONTRACT AMOUNT $25,744.25 -r 6.3 Isaacson Lawn Care Page 2 Change Order No. 1 August 16, 1993 Submitted and approved Oy.,John G. Flora, Public Works Director, on the 16th day of August, 1993. 0 John G. Flora, P.E. Director of Public Works Approved and accepted this day of , 1993 by IS SON LAWN RE John Isaacson, President Approved and accepted this day of , 1993 by CITY OF FRIDLEY -- vVilliam er, fi ' re a= rf-'`) ' e d £�C 'PLIE LA i v44--zIZ -r- it w Lb Q r z a E 1 o I � raA 1 A 4 I w ` >- M 1 P 1 A \ t Q O A P I be Ix Cie U O I W M M 12 E a \ i U z �0 1 ED O 1 Y \ I U OI U OI r x I \ W 1 ¢ I r H ce a � .i r .1 w E M P 0 O \ J t`!Jw � °w A M A IE9 iWL CC CL Z lAi1 E t9 WOE Cd=Li w E z ti O A z 24 W w a U 4 O. q-0000,000000APIohi0oM too hlr -'av0 .+ OO. OO�N I• I Om• YO1O Q00 0 000 ONM AW ,t 1 Dt�7 a1 M• 0 01 01 01 0 N• 0•v- •A AMAOPP•OMO N O.+MVVVNQ000OMWOPP .+."4wm D N.t co OMMN VVMWOOMN T CD .I If) It .I d T P a� i r w w H w :L) H U 0 H :IX w -j LL ' Cc � a. W- itwAww m W ww r Nw OCC 0)ww t HHCDJHQZ';;7CQ7C-++��,zzO Ez r� 6HH '�CeXmCfC��IL LL IL .F-Q mm riLQ WWWQ >WWIHWW>- :tAE ftw wwm - ccWiLC 0 fGCCCC.J ? 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H S z Fa #s J H CL i- L F- < LI M LD to to v I-a zL r.H••H A Z W > i A A A Y zWiiWi` vZ OWLUW !JW z t)3Uif W H1'3 GOOD C Cam: U1 0E-L L ❑OOO Q in z Xe 6) L L O T 7-Ix i- } J HH-1 O W UUUUZ>- Zz W 7 zy CC<Z3 W F f13Uit�locz _� C •= L CO L 04 M, > - CW H }- �- F- i- r- L _tZe - HLTLf F'h -i W0 ZZZZOT- vG:t- U+JUU" 37 -J3 W W Lt W U 0 ZU cLu)U f- Zo)-IW AAliA U O > zIT_ WZ W^iZ>- zZzz•- U L_F•WL_LY'CLa0M- WLLL'� HL E1 z u i W L Lf t_ < L—,: w w a CC3t- iif:_'WMCF-X W OUHF- AAAAtfW Lo -HH :t�z ce�o zzZZO < =jzLLZZOOC T!UULL2HHHH-!Z MMMMMMMMMMMMMMMMMMMMM C•- A A Cl A A A A A A A A A A A A A A A A AAf•!•0.4 W `0 OCdtJflC•!C:!CdCtit'JCiPJNNN 0 .Iaa ri.ir .;�iviriri {Hdaei.{ri-i t- (SNP -P -lam ` NCr3G^.-030303Oiutoco03i J -0 TO: FRIDLEY H.RA FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES AUGUST 1993 ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES ADMINISTRATIVE OVERHEAD TOTAL ADMINISTRATIVE BILLING: OPERATING EXPENSES: POSTAGE BY PHONE CITY OF FRIDLEY — UTILITY BILLING CITY OF FRIDLEY — $114.78 UTILITY BILL PAYMENT BY FRANENSHUH ACCIDENTLY MADE TO THE HRA. TOTAL OPERATING EXPENSES: TOTAL EXPENDITURES — AUGUST 1993 File: \123DATA\HRA \11F\83BILL.wk1 Account #'s for HRA's Use Account #'s for City's Use 13,842.00 101 - 0000 -341 -1200 250.00 101 -0000- 336 -3000 460-0000-430-4330 14, 092.00 460- 0000 -430- 4332 39.85 236- 0000 - 336 -3000 450- 0000 - 430 -4338 242.44 236- 0000 - 336 -3000 450- 0000 -430 -4338 114.78 397.07 236- 0000 - 336 -3000 TO: FRIDLEY H.R.A 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: \123DATA \HRA \T1F\93BILL.wk1 Account #'s for HRA's Use 7.4 Account #'s for City's Use 13,842.00 101 -0000 -341 -1200 250.00 101 -0000- 336 -3000 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 G C3 WO O W 6 a .-• m . d. az� c� CK ; z0. �+ O . 1- d Z W OC . a I W . 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M MMMMMMMMMMMMMMM ,. 0 0 0 00000 000 0 rrr amama m .o ,O ,O .O 10 10 10 •o •O o 10 10 �o •O .O m N N N m N N N N N N N N C y , , W N N LLJ N= i i , M M M M M M M M M M M M M M M M O• P P Cl. 0P O. O• P VP O� P O. . O� O. O• O 0 OC a F. , S , W . \ \ \ \ \ \ \ \ \ 111101 \ \ \ M M M M M M M M M M M M M M M M N Z ,n Q, r. Q, 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ r , p , Z , , wwwww a0wwww ONONCO I- W . . cS , , J N 2 M i'O U Z . % Op O pO pO O pO p0 0 0p 0 C3 C3, p0p 0 ppO p�p PCO P a P P PPP Oo P P V w: K P P P P P �O LU Imp . , ad=s: r LI 1 DATE: TO: FROM: SUBJECT: 8.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley September 1, 1993 William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Rice Plaza Update Jim Kordiak has notified me that two out of the four remaining tenants in Rice Plaza have been successful in finding new locations. Cinnamon Skin Tan will be out of the building as of September 1, and Bargains, Bargains has found a new location in Columbia Heights. The remaining two tenants, STS Temps and Hong Kong Kitchen, are still seeking alternative locations. We will keep the HRA up to date regarding the tenant removal process. Finally, I will be working with the Engineering Department to organize a bid process for demolition of the building. Action by the HRA would occur at the October or November meeting. BD:ls M -93 -501 IL �. ch rn a N O F— w Q CI) �i a w t�7 0 E O m U 0 C N C m '2 Y 7 c0 .0 Op O Q 3 m Ch >. > 0 az 0 Q CO m 0 z cis 0 Y a LL $.2 ^;8`v' 8 Lii A H LLu4 UWW1�- ` p< r-- 14" CD O LO .- U) N88�CV sQ C3 aD T ci >< O O S S 8 t~ LO 0 co ` N CA T ?' p p pp p OOOOh ti L • • Z LO COD 8 T >8888�_�� ' �: T ai ::::: »: L() 888 L� T U�.:Ln�00�00�� OTO0.N- Crj L!A (rp CC ci ..... ;: 0 C)OSd0 CO m U Co O of ti •O T 2 0 0 0 2 m w � OO ti M Q "r> �. Ld C7j r. m P- 8 8 c: CO) O O T Cn _ =z x(�pF —mom o zzz 0 p ow[��Qg o� z C� °'v =vmcn t�7 0 E O m U 0 C N C m '2 Y 7 c0 .0 Op O Q 3 m Ch >. > 0 az 0 Q CO m 0 z cis 0 Y a LL $.2 c -`�� 8.3 � The 3948 n n n� K o rd i a k Central Ave. N.E., Minneapolis, MN 55421 n nn Company 788 -9651 781 -9375 fl Real Estate n Property Management n Appraisals it Income Tax Service July 16, 1993 Bi 11 & 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. I am writing to provide you with early and advance notice to vacate your bay at the Rice Plaza Center effective November 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 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 Nr.vs^^,ber 1st anu only Cask t11at you keep rrie iiiior filled 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 � The 8 4 3948 n n n � Kordlak Central Ave. N.E., Minneapolis, MN 55421 788 -9651 781 -9375 n n n,,00 Company it Real Estate n Property Management it Appraisals n Income Tax Service July 16, 1993 Strom Company Inc. Mr John Radick 10505 Wayzata B.lv.d. Minnetonka, Minnesota 55305 Dear Mr. John Radick, GL � The ® 3948 Central Ave. N.E. Minneapolis, MN 55421 Kordlak �° n n n _,,,o 788 -9651 781 -9375 n n n � Company it Real Estate n 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. I am writing to provide you with early and advance notice to vacate your bay at the Rice Plaza Center effective November 1st, 1993 While we are ¢ f. I� The 8.5 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 n Real Estate n Property Management n 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 'G_,*'0 3948 n n n � Kordlak Central Ave. N.E., Minneapolis, MN 55421 n n n Company 788'9651 781 -9375 n Real Estate n Property Management n 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. While we are only required to provide 30 day notice the city has asked me to provide you with ample notice and work with %/o!j in AyAry wav nnczcihlo tn a° 0 9.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: September 2, 1993 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Status Report on Housing Programs This is to provide you with an update on the housing rehab programs and the Fridley First -Time Homebuyer Program. Home Improvement Grant Program All of the administrative agreements between the City, County, and ACCAP have been signed. ACCAP has received the list of applicants who were prescreened (total of 18) and has agreed to.do the title work (previously our responsibility). ACCAP will begin inspections as soon as possible. Home Improvement Loan Program The Memorandum of Understanding between the HRA and Fridley State Bank has been executed, and most of the details are complete. As soon as the properties are inspected and the homeowners have a chance to get estimates, the Bank will begin to process credit applications and, hopefully, close some of the loans by the middle of September. A total of 22 applicants were selected for the first phase of this program. Home Mortgage Assistance Program The Origination Agreement was sent to United Mortgage last week for their review. A meeting has been tentatively scheduled for September 3, 1993, at which time we plan to discuss the program and make final arrangements to process mortgage applications. United Mortgage may have an originator come out to Fridley to take mortgage applications after the homes have been inspected. Housing Inspections After an extensive search and interview process, we are pleased to report that two individuals have been hired as housing inspectors. As you know, the original plan was to hire the inspectors as independent contractors however, we ran into a problem. 9.2 Status Report on Housing Programs September 2, 1993 Page 2 After talking with several potential candidates, we discovered that none of them carried professional liability insurance. All of them had full time jobs with other cities and, therefore, had no need for this type of insurance. We contacted several insurance specialists and were told that the premiums for liability errors and omissions and workers' compensation coverage would cost $1,500 to $2,000 per inspector. Based on our inspection volume, it was not feasible for an inspector to purchase insurance and recoup his/ her costs. Given this situation, the only alternative was to hire the inspectors as temporary /part -time employees. The inspectors will be paid an hourly rate of $25. Including the employer -paid costs (FICA, unemployment tax, workers' comp, and liability insurance), the total cost is $28.24 per hour per inspector. This figure is well within the $35 hourly rate in the budget. At the conclusion of the first phase of the rehab program, we have the option of extending or cancelling the inspection contracts at no further cost. First Time Homebuyer Program On August 18, 1993, we were notified that the Minnesota Housing Finance Agency (MHFA) had received approval to sell bonds for the program. MHFA plans on issuing bonds early this month with the funds available for mortgage commitment shortly thereafter. Both Marquette Bank - Brookdale and Metropolitan Federal will administer the program in Fridley. GF:ls M -93 -510 g 'O Qq7 L7 N b O U 1. w M Nfr,v .��nr,�e "C�w in %o w � 4 � " o �t- oo 0 0 a C. o..noo a N N N fn -+ Sp N C L • b d C d a (` r t` p 00 O 00 O .D t` 0 0 0 in N .•. op O T IQ lOno N Q\a Y .`.� N •-� rf sf N to s x cy ap at e�• TU C O �V vii N bng0 N 00 en is > .-w ..^ W 00 N .O O C a o co E 00 L' .. m •• > oS ms.o v > o T o . vi o > mo E .ba C S S a ° t a3S a 0 C o T O � �J v w ° ° nv.� � d E d CS o Qa OD a NNNNONN "q O �oSS O S N cn V N %O c0 t, N V M fn O 00 ^C N O m a t- M N M „ °. P a a NtD�� a E .� OD R N ."4 % N d .r O . ca � S cn in a 00 s C4 O ° a. q z ,°a e5Y !•� a `tea 04 L �p rl im V' o Q �O 9� n �' co W b ai n a ~ e'. O a Jy O N N N N o0 pe N 10 i. N 0�0 °� O a 11. 'O N v u p4 'fl y .Vn 000 r p m C nn N .Nr b cr�j .N•. O H m « N ~ n.. T 00 3 o b a a d _ m C .�', ffi •'eO� . �' p03 C! 0 0b s o a a g a C ;^o H3 Z m o an d d pp y{ • dj x '_ ^ 'C e; d O N m a 7 p Op m O0 an G� E .r o a�i x x° S O '" o •aA• a�i ° m .n m cat* C. 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V V V = Q 9.4 10.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: September 1, 1993 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Consider Scattered Site Acquisition Policies As a result of the first round of rehabilitation program applications, two detached single family homes may require extensive rehabilitation to meet minimum code requirements. Rehab costs could far exceed the value of the structure. Both houses are occupied. Authorizing the rehab is not financially appropriate; however, doing nothing would be equally disturbing by permitting substandard structures to continue. Grant and I have developed a proposed strategy using the scattered site acquisition program funds to address this issue. HRA discussion and direction is requested. Background As part of the HRA's program formulation in 1992, a scattered site acquisition fund of approximately $100,000 was created to remove blighted and abandoned homes and to also acquire sites for new housing construction. It was proposed that the HRA and City Council would approve a list of potential properties on an annual basis. In order to determine the sites for acquisition, the Housing Coordinator would use a rating system to identify priority parcels. In fact, staff prepared a scattered site acquisition "rating system worksheet ". Slides of potential homes for acquisition were shown to the HRA and Council. It was discussed that abandoned homes could be removed and the property conveyed to adjacent property owners. Another option discussed was to acquire the lot and building, demolish the building, and sell the lot to a builder for new construction. We also discussed removing non - conforming uses or other questionable structures (i.e., Frank's Used Cars) for new housing development. In some cases, the homes have been a nuisance to the neighborhood and have caused considerable code enforcement activity. We even identified an initial list of five properties for consideration in 1993. E 10.2 Scattered Site Acquisition Policies September 1, 1993 Page 2 Current Thinkin As a result of the rehab application process, we recommend a modification to the program We recommend that the scattered site acquisition budget of $100,000 be split in half for two purposes. The first purpose would be to use about one -half the budget to use in tandem with the rehabilitation program to remove properties which cannot be rehabilitated. The second purpose is to implement the program as previously discussed. We believe it is necessary to maintain some type of flexibility in the scattered site acquisition budget to address problem properties that are discovered during the rehab application process. We believe reserving about half of the budget for this purpose is a good start. Use of the remaining portion of the budget can be more structured. In fact, Grant will be developing a list of properties to be acquired and will be ranking them. Some of the properties have already been identified in our previous work. Then, Grant will identify properties below $50,000 in value and perform field inspections to determine problem properties. All of these properties will then be ranked according to the scoring sheet which staff previously developed in 1992 (see attached). This list will then be reviewed and approved by the HRA and City Council. For both purposes, it is hoped that we can negotiate with the property owner successfully. We seek to have the owner waive any relocation benefits. Whether or not the HRA would pursue condemnation would be considered on a case -by -case basis. The advantages of this strategy are: • It provides an option to the property owner who has been turned down for rehabilitation assistance. • It removes substandard structures which have a negative impact on adjacent properties. • It provides the HRA with flexibility to address properties as we become aware of them through the rehabilitation process. • The HRA still has money available to remove problem properties in a systematic, orderly fashion based on the ranking of properties completed by the Housing Coordinator and approved by the HRA. The primary disadvantage to this approach is that if a home is occupied, the owner may be unwilling to move and relocation costs may be necessary. Scattered Site Acquisition Policies September 1, 1993 Page 3 Budget Implications No monies have been expended in thi: scattered site acquisition budget. S amount for 1994. Therefore, about $20 total until December 1994. Under th $100,000 would be available to address the rehab process, and the same amount acquiring homes on the priority list. Next Steps 10.3 year's allocation of the taff is proposing the same ),000 would be available in proposed approach, about problem properties through would be available to begin The two properties which we have identified through the first round of applications will be inspected within the next two weeks. An inspection report and estimates for rehab will then be developed. At the October meeting, we will bring this information to the HRA for further direction on whether or not the HRA would permit staff to begin negotiations with the property owner. Upon concurrence by the HRA, Grant will begin compiling a list of properties to consider for acquisition and rank them. The list will then be submitted for HRA approval. Summary We would like the HRA to discuss and comment on our proposed strategy. BD:ls M -93 -504 1. 2. 3. 4. 5. eVA �l�' - 10.4 SCATTERED BITE ACQUISITION Goals: a. To remove blighted and abandoned homes b. To provide new housing construction Program Components and HRA Budget: a. Acquisition of vacant and developed properties b. $100,000 for property acquisition; $9,000 in Administration budget provides for appraisal, title, and legal costs. Program Requirements: a. HRA and City Council approves list of potential properties on an annual basis. b. Housing Coordinator uses a rating system to identify priority parcels for acquisition from: - List of abandoned homes - List of vacant parcels - Potential redevelopment sites C. See attached chart for rating system. The chart identifies a weighted criteria system to analyze properties. Purposes of Acquisition Activity: a. Remove blighted building and convey property to adjacent property owners if it does not meet lot requirements. Adjacent property owners can use area for potential improvements. b. Remove blighted building and sell lot to builder for new construction. C. Remove questionable structure or nonconforming uses and sell lots to builder for new construction. Relocation costs may be necessary if building is occupied. Future Approvals Necessary for Scattered Site Acquisition: a. Properties must be in redevelopment project area; City Council and HRA will need to adopt a resolution. Jim Casserly is researching whether or not this would be absolutely necessary. 10.5 Scattered Site Acquisition Page 2 b. Authorize Housing Coordinator to initiate acquisition process and when, necessary, to contract with appraisers, builders, and others. 6. Immediate Recommended Actions: a. Potential properties for 1993: (1) 513 Fairmont Street (2) 532 Janesville Street (3) 576 Ironton Street (4) 683 Glencoe Street (5) 389 Hugo Street b. Initiate property owner contacts and determine willing- ness for sale. These parcels contain severely debilitated structures, some worse than others. All of these lots are below 7,500 square feet and are not buildable without a variance. The lots could be divided in half and conveyed to adjacent property owners. Each of these properties range in value from $30,000 to $50,000. The worst two or three will have to be chosen to remain within the budget. 7. Land Sales: There may be occasions when the acquisition costs could be recouped through sale of the property. N }>1! �I U a 0 N a 0 .,4 V cd U t' 0.6 a) x a) aa) 4J (1) b U `U A � O X 0 w A0 4-) N H O .r 4 _+-) =• V X 4 X G O .� p 9 V 4 0+ cd .,A 0 �x a 0 � a) ` > 4J N 4 O N � r-1 td 4J o -rya a) � aNi ca 4N) 4j 4J .H 144 rA H V. d a) Q+ O 03 k b ri 44 .W O> r4 O N )-k P4 > �� N U W ,[ 0 {, a x +� w '� to X N� N � O A 0 .� 4J 4 > 104 4J M 4J Ux N U X p r. 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A O p N= 0, p 3�V� -� 'rya :S (1) 3tpEn V ,a y 0 3- N=�c0 p�N A, A O N 41 V (X -rl 0 a) (a 0 N a 0 �4 �VAP4)0 .1�f4 a)0Nra)r O (aA U 0 -H > H 14 f� +J N Cl 10.7 i/ i 11.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: September 2, 1993 TO: William Burns, Executive Director of HRA FRM: Barbara Dacy, Community Development Director SUBJECT: Lake Pointe Marketing Status At the HRA and City Council work session on May 8, 1991, the following items were assigned: 1. Prepare a marketing brochure and letters to be directed to the 25 major corporations in Minnesota or at least a very large number of corporations in Minnesota that have been identified by the standard industrial classification code. 2. Send a letter and brochure to area real estate brokers and pursue an open listing approach to marketing the property. 3. Evaluate acquiring the two option properties on the north side of West Moore Lake Drive. 4. Investigate renewing MPCA indirect source permit. 5. Evaluate whether Minnegasco can provide natural gas to the property. 6. Investigate the possibility of doing some of the intersection improvements and creating same sort of monument at the entrance to the site to make it more noticeable. 7. Install signs on the property visible from the highway. 8. Conduct more specific research on the medical sector. This memo is intended to provide a status report on these items. Numbers 1, 7, 8: The Executive Director, the Mayor, and myself have met with several advertising and marketing firms to discuss an appropriate marketing approach for the property. These meetings culminated in a request for proposal to four agencies (see attached). The RFPs are to be submitted to the Executive Director's office by September 16, 1993. 11.2 Take Pointe Marketing Status September 1, 1993 Page 2 The REP asks the agencies to provide a marketing strategy for the property which would produce a sale to corporate office users. Each strategy or approach was required to have an estimated cost. A timetable and bacbjraund of the persons working on the project was also requested. We would like the BRA to pass a motion to authorize the Chairperson and Executive Director to execute a contract hiring an agency in the latter part of September. The BRA Chairperson, the Mayor, Executive Director, Jim CL.sserly, and myself will review the RFPs. During the interviews, other issues which the BRA asked us to investigate seemed to become part of the marketing strategy. For example, some of the agencies suggested additional signage, creation of a specific identity for the property, and installation of an entrance monument sign. Discussion also oared about the "targets" of the advertising. Some agencies stated that they could assist the HRA in targeting the marketing and advertising to specific companies to generate corporate office users. In the meantime, the Community Development intern has obtained a list of the chief executive offices and real estate development directors for the top 100 public and private companies in Minnesota. He is compiling a list at this time to identify each company and its appropriate standard industrial classification code. This information could be used by the advertising/marketing firm. Number 2: The marketing /advertising agency will prepare a brochure to mail to real estate brokers. Number 3: The owners of the two option properties have agreed to extend the option agreements to October 31, 1993, in order to enable the HRA and City. Council to evaluate whether or not the properties should be acquired at this time. The original purchase agreements executed by Woodbridge established a purchase price of the Gunderson property at $94,500 and the Hedman property at $82,000. Since that time, $5,500 has been paid to Gunderson (leaving $89,000) and $6,000 has been paid to Hedman (leaving $76, 000) . The rights of the purchase agreement were assigned to the HRA upon our acquisition. Both owners are willing sellers at this time and have expressed an eagerness to move within the next year. The BRA has three alternatives: (1) Jet the options expire, (2) Extend the options for another year ($500 each to extend), or (3) exercise the rights under the purchase agreements and acquire both properties ($165,000). 'Ihe Executive Director recommends that the HRA let the options expire and wait to acquire the properties when a solid development proposal is submitted. If condemnation is necessary, relocation costs would be required. 11.3 Iake Pointe Marketing Status September 1, 1993 Page 3 Number 4: I have spent considerable time reviewing the original MPCA indirect source permit for the Lake Pointe property. According to the MFCA regulations, the HRA could renew the permit under a "transfer of ownership" application procedure. The permit application, however, would have to include an updated traffic study and carbon monoxide analysis in order for the MFCA to issue a permit. The original permit also required that the TH-65 and West Moore Lake Drive intersection improvements be completed prior to Phase II of the development which was after construction of a 120,000 square foot, six story office building and a 10, 000 square foot restaurant. In other words, the BRA could renew the permit, but we would be bound by the development parameters of the original develcpmnent proposal. I will obtain an estimate as to how much an updated traffic analysis would cost. Updating the permit would save about six months for a new user. This could be a good selling point to a new user. Amendments, if necessary, would take a shorter period of time. The HRA may want to pursue the traffic study update. (Also see number 6 below) . Number 5: I have contacted the engineering director at Minnegasco regarding installation of gas maim. He recc mnended the HRA wait until specific development plans have been approved. Gas mains are available to be extended from West Moore Lake Drive and 7th Street, but the size of the mains should be accurately sized for a known development. N Umber 6: John Flora and I have reviewed whether or not a portion of the intersection improvement at -IH -65 and West Moore Lake Drive could be acccuPlished prior to development on the property (see enclosed mom). If only one side of the intersection is completed, the lane expansions would not align with the opposite leg of the intersection. Further, the cost of the intersection has not been programmed into the current 1993 BRA budget. Therefore, John and I suggest that we not complete the intersection improvements until a solid proposal has been received for the property. As noted above, the intersection improvement will have to be completed anyway after at least 120,000 square feet of office use are placed on the property or whenever dictated by the indirect source permit. BD:ls M -93 -512 r _ 11.4 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: July 15, 1993 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Lake Pointe Issue Followup I met with John Flora regarding the T.H. 65 /West Moore Lake Drive /Central Avenue improvement project. As you recall, the HRA and City Council inquired as to whether the intersection improvements could be completed prior to development of the property. The intent of the intersection design is to not only add capacity for additional anticipated traffic, but also to correct the design of the roadways on the east side of T.H. 65. The original plan proposed to realign Hillwind Road and create a 90 degree inter- section with Central Avenue. The. median at the intersection -of Central Avenue would-also have to move about 10 -15 feet to the north to align with the redesigned lanes for West Moore Lake Drive. Because of these factors, John Flora and I agree that if the improvement Is to be completed; both sides of T.H. 65 should be completed at one time. The project is estimated to cost about $1 million. John noted that it was proposed that the realigned Hillwind Road would become part of the MSAS system. He said that it would not be prudent to initiate this improvement at this time, given the fact that the Polk /Lynde Street projects are currently slated for MSAS reimburse- ment. The City would have to remove these streets from the MSAS system. The project could be constructed using monies from the capital improvement budget or the HRA budget.. As you know, an additional one million dollar expense in the HRA budget will cause a significant impact on funding for the housing programs, redevelopment of Lake Pointe, and the southwest quadrant. Therefore, John and I suggest that we not complete the T.H. 65 /West Moore Lake Drive /Central Avenue improvement until we receive a solid proposal to develop Lake Pointe. If you have further questions, please feel.free to contact me. BD:ls cc: John Flora, Public Works Director FRIDLEY MUNICIPAL CENTER - 6431 UNIVERSITY AVE. N.E. FRIDLEY, MN 55432 - (612) 571 -3450 - FAX (612) 571 -1287 REQUEST FOR PROPOSAL ADVERTISING /MARKETING SERVICES TO: Larsen Design Office, Inc. 7101 York Avenue South Minneapolis, MN 55435 Attention: Ms. Catherine Gillis FROM: City of Fridley Fridley Housing and Redevelopment Authority DATE: August 18, 1993 SUBJECT: Request for Proposal - Advertising /Marketing Services The City of Fridley and the Fridley Housing and Redevelopment Authority are actively seeking the help of an advertising /marketing firm to assist in promoting the City's Lake Pointe site (see attached drawing). This forty acre site is one of the best remaining sites in the entire Twin Cities area for corporate office development. Located along Interstate 694, between Highway 65 and Highway 47, the site is highly visible and provides easy access to downtown Minneapolis, the airport, and most other locations in the Twin Cities area. The site also has the advantage of being ready for development. The streets are in, basic landscaping has been done, a sprinkler system is in place, water and sewer is in place, and building pads have been compacted. The site also has the advantage of being in Anoka County and the City of Fridley, where taxes and utility rates are among the lowest in the Twin Cities area. Additionally, the site offers ready access to a strong blue and white collar labor market that already supports Onan, Medtronic, Burlington Northern, FMC, and a wide variety of other industries. Our aspiration for the site is to have someone buy it and develop high density corporate office space. We need someone to help us sell it. We are hoping that whoever is selected will have the capability of providing direct, hard - selling advertising to a variety of corporate users throughout Minnesota and the United States. Now that you have heard about our aspirations, tell us how you would go about marketing the site. For example, what activities would you conduct to produce a sale to corporate office users? Please identify the approaches you would take and the cost of the activity to support your approaches. Request for Proposal 11.6 August 18, 1993 Page Two In addition to identifying activities and estimated costs for activities, please tell us what support services would be required from the City of Fridley and identify activities that would be contracted out. We would also like to know something about the key people who would be working on the project, as well as their availability, and the timetable you would propose for concluding key activities of the project. Please submit five copies of your proposal by September 16, 1993. Proposals should be directed to William W. Burns, City Manager, 6431 University Avenue N.E., Fridley Minnesota, 55432. Thank you for considering this request for proposal. Sincerely, William W. Burns City Manager, City of Fridley Attachments (3) 0!;o vi S? IK 410 mat 11.8 ADDRESSES REQUEST FOR PROPOSAL ADVERTISING /MARKETING SERVICES LAKE POI NTE SITE August 18,1993: Busch & Partners, Inc. 318 Groveland Minneapolis, MN 55403 Attention: Merrill Busch The Gottry Group 10700 Normandale Boulevard Suite 220 Bloomington, MN 55437 Attention: Steve Gottry The Kuester Group, Inc. 81 South Ninth Street Suite 300 Minneapolis, MN 55402 Larsen Design Office, Inc. 7101 York Avenue South Minneapolis, MN 55435 It 11.9 AMENDMENT TO PURCHASE AGREEMENT THIS AMENDMENT TO PURCHASE AGREEMENT, by and between the Housing and Redevelopment Authority in and for the City of Fridley ( "Buyer ") as assignee and successor in interest to FAIRFIELD PROPERTIES, INC., a Minnesota corporation and SADIE H. GUNDE�jSO ("Seller".), made and entered into this _36 day of 1993. In consideration of the premises and of other good and valuable consideration, Seller and Buyer hereby amend said Purchase Agreement and agree as follows: 1. EXTENDED CLOSING DATE: The date of closing is hereby extended from August 31, 1993, to no later than October 31, 1993, subject to all terms and conditions set forth in the Purchase Agreement. 2. EARNEST MONEY: If the closing occurs on or before October 31, 1993, then the $5,500 non - refundable Earnest Money previously paid will be applied to the Purchase Price in accordance with the terms of said Purchase Agreement applicable to all payments of Earnest Money. IN WITNESS THEREOF, the parties have caused these presents to be executed as of the day and year first above written. SADIE H. GUNDERSON (SELLER) THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA (BUYER) Byj� /a'� Its Executive Director . I . 11.10 AMENDMENT TO PURCHASE AGREEMENT THIS AMENDMENT TO PURCHASE AGREEMENT, by and between the Housing and Redevelopment Authority in and for the City of Fridley ( "Buyer ") as assignee and successor in interest to FAIRFIELD PROPERTIES, INC., a Minnesota corporation and DAVID G. HEDMAN ("Seller"), made and entered into this _1 day of V , 1993. In consideration of the premises and of other good and valuable consideration, Seller and Buyer hereby amend said Purchase Agreement and agree as follows: 1. EXTENDED CLOSING DATE: The date of closing is hereby extended from August 31, 1993, to no later than October 31, 1993, subject to all terms and conditions set forth in the Purchase Agreement. 2. EARNEST MONEY: If the closing occurs on or before October 31, 1993, then the $6,000 non- refundable Earnest Money previously paid will be applied to the Purchase Price in accordance with the terms of said Purchase Agreement applicable to all payments of Earnest Money. IN WITNESS THEREOF, the parties have caused these presents to be executed as of the day and year first above written. DA ID G. HEDMAN (SELLER) AL, X Jl /�- /4 THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA (BUYER) r By Its Executive Director 12 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. . / ��A, C,.JAX- _/Or) BD:ls M-93-445 U (llff 61// '8 TO: HRA COMMISSION MEMBERS FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR CRAIG A. ELLESTAD, ACCOUNTANT SUBJECT: 1992 AUDITED FINANCIAL STATEMENT DATE: August 12, 1993 Attached is the 1992 audited financial statement for the Fridley Housing and Redevelopment Authority. They conducted their audit in accordance with generally accepted auditing standards and audited, on a test basis, evidence supporting the amounts and disclosures in these financial statements. In their opinion, our financial statements present fairly, in all material respects, our financial position for the year ended December 31, 1992. If you have any questions regarding this financial statement, we will be happy to meet with you individually to answer them. CC: William Burns Barbara Dacy FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY P- a component unit of the CITY OF FRIDLEY, MINNESOTA DECEMBER 31, 1992 P-.9 r-, Prepared By Department of Finance Craig A. Ellestad HRA Accountant FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY ANNUAL FINANCIAL REPORT DECEMBER 31, 1992 TABLE OF CONTENTS Page Organization 1 Independent Auditor's Report 4 Combined Financial Statements Combined Balance Sheet - All Fund Types and Account Group o Combined Statement of Revenues, Expenditures and Fund Balance ALL Governmental Fund Types 7 Notes to Financial Statements 8 Combining and Individual Fund Financial Statements Debt Service Fund Comparative Balance Sheet 16 Comparative Statement of Revenues, Expenditures and Fund Balance 17 Capital Project Funds Combining Balance Sheet 2 O Combining Statement of Revenues, Expenditures and Fund Balance 22 Comparative Statement of General Long -Term Debt 2 5 Supplemental Section Schedule of Assessed Valuation and Long -Term Debt 28 Schedule of Sources and Uses 29 FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY a component unit of the CITY OF FRIDLEY, MINNESOTA organization DECEMBER 31, 1992 COMMISSIONERS : LARRY COMMERS, CHAIRMAN JIM McFARLAND JOHN MEYER VIRGINIA SCHNABEL DUANE PRAIRIE 1 E, r-1, 17 -1 I n-, TAUTGES, iRE ®PATH & CO., LTD. CEPTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Fridley, Minnesota Honorable Chairperson and Members of the Commission Fridley Housing and Redevelopment Authority We have audited the general purpose financial statements of the Fridley Housing and Redevelopment Authority, a component unit of the City of Fridley, Minnesota as of and for the year ended December 31, 1992 as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the component unit financial statements referred to above present fairly, in all material respects, the financial position o�f�e�� Fridley Housing December 31�, 1992opamnd the results oaf its component unit of the City of Fridley, operations for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the component unit financial statements taken as a whole. The combining, individual fund, and account group financial statements and supporting schedules as listed in the table of contents is presented for purpo ses of additional analysis and is not a required part of the component unit financial statements of the -Fridley Housing and Redevelopment Authority, a component unit of the City of Fridley, Minnesota. Such information has been subjected to the auditing procedures applied in the audit of the component unit financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. June 10, 1993 e TAUTGES, REDPATH & CO., LTD. Certified Public Accountants 4810 White Bear Parkway a White Bear Lake, Minnesota 55110 • 612/426 -7000 • FAX /426 -5004 • Member of HLB International 7 COMBINED FINANCIAL STATEMENTS 5 FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY a component unit of the CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET - ALL RJND TYPES AND ACCOUNT GROUP December 31, 1992 Assets Cash and cash equivalents Deposits with trustee Investments Receivables Accounts Taxes - Unremided Delinquent Interest Mortgage - Current Delinquent Deferred Due from other governments Amount available in debt service fund Amount to be provided for retirement of general long term debt Total assets Liabilities and Fund Balance Liabilities : - Account payable Deposits payable Deferred revenue Due to other governments Bonds payable Total liabilities Fund Balance (deficit) Reserved for construction Reserved for debt service Total Fund Balance Total liabilities and fund balance Totals Memorandum Only 1992 Account $20,514 Group Governmental Fund Types General Debt Capital Long Term Service Projects Debt $20,514 495,366 413,175 7,766,714 172,889 5,345 638,322 86,261 181,841 Totals Memorandum Only 1992 1991 $20,514 $953,598 8,179,889 6,034,968 5,345 14,428 638,322 10,766 495,366 86,261 172,889 951,717 951,717 952,000 21,588 21,588 23,913 405.494 405,494 473,604 15,649,506 15,649,506 11,84 -6,396 $413,175 $9,490,461 $16,055.080 $25,958,636 $20,947,928 7,681 124,486 132,167 9,299 16,533 16,533 15,086 1,590,039 1,590,039 1,447,366 256.520 256,520 181,841 16,055,000 16,055,000 12.293,ti00 7,681 1,987,578 16,055,000 18,050,259 13,943,592 7,502,883 7,502,883 6,530,732 405,494 405,494 473,604 405,494 7,502,883 0 7,908,377 7,004,336 $413,175 $9,490,461 $16,055,000 $25,958,636 $20,947,928 See Accompanying Notes to Financial Statement 6 1 1 r-, Revenues: FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY a component unit of the CITY OF FRIDLEY, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE ALL GOVERNMENTAL FUND TYPES decor 150ded no-e mber 31 ., _I992 Governmental Fund Types Totals Debt Capital Memorandum Only Service Projects 1992 ' 1991 Tax increment $2,931,681 $2,931,681 $2,662,381 Special assessment 112,059 112,059 69,591 Sale of property 34,363 34,363 117,500 Interest on investments 48,618 420,739 469,357 359,855 Rental 86,834 86,834 108,414 Miscellaneous 206 206 409 Total revenues 48,616 3,585,882 3,634,500 3,318,150 Expenditures : -' Professional services 23,810 241,402 265,212 258,041 Land purchase 4,749,411 4,749,411 54,087 Site improvement 116,350 116,350. 19,590 - Buildings 125,000 Principal payment 265.000 265,000 245,000 Interest expense 873,695 873;695 892,514 Agent fees 11,002 11,002 3,323 Refunds to school districts 368,500 368,500 310,272 Miscellaneous 107,461 107,461 92,689 Total expenditures 1,173,507 5,583,124 6.756,631 2,000,516 Excess (deficiency) of revenues over expenditures (1,124,889) (1,997,242) (3,122,131) 1,317,634 Other financing sources (uses) Proceeds of increment bonds 4,026,172 4,026,172 Operating transfer in 1,000,895 9,413,422 10,414,317 1,915,347 Operating transfers out (3,970,288) (6,444,029) (10,414,317) (1,915,347) Total other financing sources (uses) 1.056,779 2,969,393 4,026.172 0 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (68,110) 972,151 904,041 1,317,634 Fund Balance January 1 473,604 6,530,732 7,004,336 5,686,702 -' Fund Balance December 31 $405,494 $7,502,883 $7,908,377 $7,004,336 See Accompanying Notes to Financial Statement 7 I FRIDLEY MISING AND REDEVELOPMENT AUTHORITY a component unit of the CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEP13ITS DECENSER 31, 1992 1. Summary of Significant Accounting Policies 1 The Fridley Housing and Redevelopment Authority (HRA), Fridley, Minnesota was established in 1980 by the City Council of Fridley, Minnesota under the Statutes of the State of Minnesota to complement and account for any public redevelopment and housing projects undertaken within the City which would fall under the statutory authority of the HRA. The Housing and Redevelopment Authority is a component unit of the City of Fridley and an integral part of the City. The accounting policies of the HRA conform to generally accepted accounting principles. The following is a summary of the more significant policies: A. Fund Accounting The accounts of the HRA are organized on the basis of funds and account group, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. Resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into two generic fund types as follows: GOVE W031TAL FLUIDS Debt Service Fund - The Debt Service Fund is used to amt for the accumulation of resources for, and the payment of, general log -term debt principal, interest and related costs. Capital Projects Funds - The Capital Projects Funds are used to account for the acquisition of property or construction of improvements set forth by the Housing and Redevelopment Authority. B. . Fixed Assets and Long-Term Liabilities The accounting and reporting treatment applied to the fixed assets and long -term liabilities associated with a fund are determined by its measurement focus. ALL governmental funds are accounted for on a spending or °financial flow" measurement focus. This means that only current assets and current Liabilities are generally included on their balance sheets; accordingly, their reported fund balance is considered a measure of °available spendable resources." Governmental fund operating statements _ present increases and decreases in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Land was acquired by the HRA and later sold at a loss. This is considered a cost of the program. Therefore, the HRA has no fixed assets. —11� 8 n FRIDLEY YAWING _AND- REDEVEL�AUTHORITT a component unit of the CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1992 C. Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported ^�+ in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All funds of the HRA are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule are principal and interest on general long- term debt which is recognized when due. D. Total CoLumns an Combined Statements Total columns on the combined statements are captioned uNemorardum Ontyu to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations, in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have riot been made in the ^ aggregation of the data. E. Assets, Liabilities and Fund Equity 1) lash and Cash Equivalents and Investments Cash balances from all funds are combined and invested to the extent available in certificates of deposit, U.S. government securities and other securities authorized by State Statute. Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Investments are stated at cost which approximates market. The HRA considers cash equivalents to be those investments with original maturities ^ of three months or less. 2) Annual Leave There is no accrued liability for vacation pay and other employee benefits as the HRA contracts with the City to provide professional services. The HRA funds have no liability for employee benefits at December 31, 1992. F. Revenues and Expenditures Tax Increment (Property Taxes) - Revenue is recognized in the year of collection, with amounts due from the County and received early in the following year set up as receivable (unremitted receivables). Uncollected (delinquent) taxes receivable are fully offset by deferred revenue as they are not available to finance current expenditures. Interest an Investments - interest is recorded as revenue in the year earned. E I" -- FRIDLEY HOUSING AND REDEYELM ENT AUTHORITY a component unit of the CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1992 2. Fund Deficits The following funds had deficit fund balances at December 31, 1992: �y Capital Projects Funds Center City S 117,007 North Area 50 Lake Pointe 9,135 Area Wide 195,130 3. Deposits and Investments A. Deposits In accordance with applicable Minnesota Statutes, the Housing and Redevelopment Authority maintains deposits at depository banks authorized by the Housing and Redevelopment Authority Commission.- -Alt such depositories are members of the Federal Reserve System. Minnesota Statutes require that all deposits be protected by insurance, surety bond or collateral. If collateral is pledged as protection for the deposits, the market value of the collateral must, at j a minimum, be 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage backed collateral). Repurchase agreements are intentionally overcollateratized at 105% to insure that the safety of investment principal is attained and losses do not occur from rapid overnight —i deterioration. Balances at December 31, 1992 are as follows: Categories 2 and 3 are not procedures that are authorized by Minnesota statutes. 10 Bank Carrying Balances Amount .� 1) Insured or collateralized by securities held S 30,904 $ 20,514 by the City or its agent in the City's name 2) Collateralized with securities held by the pledging institution trust department in the City's new 3) Uncollateralized or collateralized with securities not in the City's name 7 Totals $ 30,904 S 20,514 Categories 2 and 3 are not procedures that are authorized by Minnesota statutes. 10 FRIDLEY HOUSING AND MEYELOPMW AUTHORITY _ a camoonent unit of the CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1992 3. Deposits and Investments (Conti B. Investments The City is authorized by Minnesota Statutes to invest in the following: (a) Direct obligations or obligations guaranteed by the United States or its agencies. (b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above. (c) General obligations of the State of Minnesota or any of its municipalities. (d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System. (e) Commercial paper, issued by United States Corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. (f) Repurchase or reserve repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker dealers. _ (g) Future contracts sold under authority of Minnesota Statutes 471.56, subd.5. The City's investments are categorized below to give an indication of the level of risk assumed at year end. The level of risk is defined by the following criteria set out by the Governmental Accounting Standards Board within Statement No. 3. Category 1 includes investments that are insured or registered for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty or dealers trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by r-, the counterparty or dealer, or its trust department or agent but not in the City's name. r-, 11 FRIDLEY 11Ol1SING AND REDE$UOPNW AUTHORITY a component unit of the CITY OF FRIDL.EY. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1992 3. Deposits and Investments (Continued) The Category 1 securities consist of the various investment types shown below which are held by a trustee in the City's name. The carrying value, market value and credit risk of the investments held by the City at year end are as follows: Credit Frisk Category Carrying Market Securities Type 1 2 3 Amount Value U.S. Government securities $1,102,801 $1.102.801 $1,153.974 U.S. Government agencies or instrumentalities 6,290.618 6,290,618 6.297,075 Commercial paper Repurchase agreements 786,469 786,469 786,469 Total investments $7. 393.419 $a 5786.469 $8.179.888 58.237.518 Cash and cash equivalents and investments per accompanying financial statement: Cash and cash equivalents $20,514 Investments 8,179,889 Total $8.200.403 12 FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY a comxx nt unit of the CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1992 ;.oaa- i em Gc is The following is a summary of long -term debt transactions of .the Housing and Redevelopment Authority for the year ended December 31, 1992: Bonds payable at January 1, 1992 $12,290,000 Bonds issued 4,030,000 Bonds retired (265,000) Bonds payable at December 31. 1992 $16.055.000 Bonds payable at December 31, 1992 are comprised of the following individual issues (in thousands of dollars): $4,070,000 Tax Increment Revenue Refunding Bonds of 1985 due in varying arvwal $2,540 installments of $265,000- 460,000 through February 1, 1999; interest at 7.05% - 9.00% $9,485,000 General Obligation Tax Increment Refunding Bonds of 1990 due in varying 9,485 annual installments of $810,000 - 1,270,000 through August 1, 2009; interest at 6.60% - 7.00% $4,030,000 General Obligation Tax Increment Bonds of 1992C due in varying, annual 4,030 installments of $155,155 - $4,185,155 through December 1, 1995; interest at 3.3%. ^ 516.055 The Tax Increment Revenue Refunding Bonds are payable solely from increment revenue that is generated from the related increment district. General Obligation Tax Increment Refunding Bonds are payable primarily from tax increment revenue with any deficiency to be provided by.general property taxes. 13 FRIDLEY HOUSING AND REDEVELOP) M AUTHORITY a component unit of the CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATENENTS (CONTINUED) DECEMBER 31, 1992 4. Lora -Term Debt (Continued) Annual requirements to amortize long -term debt outstanding at December 31, 1992 including principal and interest payments of $26,088,759 are as follows: Year Ended December 31 1993 $1,292,869 1994 1,2,625 1995 5,318,895 1996 1.130,300 1997 1.128.835 1998 -2002 5.827,665 2003 -2007 7,293,870 2006 -2009 2,806.700 $26.088.759 There are a number of limitations and restrictions contained in the various bond indentures. The Housing and Redevelopment Authority is in compliance with all significant limitations and restrictions. 5. Tax Increment Districts The Fridley Housing and Redevelopment Authority is the administrating authority for the following Tax Increment Financing Districts: All debt issued is pooled debt. Total bonds issued is $42,605,000. Total amount of bonds redeemed is $26,550,000. Outstanding bonds at December 31, 1992, is $16,055,000. All taxable value is currently retained by the Housing and Redevelopment Authority. 14 1 `17 ^'t Tax Cepacily Values FleWned Year Fiscal By Established District Original Current Captured DisparN Audwrit 1979 1 $ 251,798 $869,315 $617,517 $0 $617,517 1981 2 71,077 838,514 767,437 0 767,437 1982 3 244,534 1.472,246 1,227.712 275,561 952,151 1984 4 105,308 138.794 33,486 0 33,486 1984 5 48,101 40,186 0 0 0 1985 6 137,028 172,546 35,518 0 35,518 1986 7 10,960 85,899 74.939 0 74.939 1986 8 26,742 35,989 9,247 0 9,247 1989 9 970,180 978,368 8,188 0 8,188 1990 10 20,938 4,888 0 0 0 1992 11 63,148 100,992 37.844 0 37.844 1992 12 110,573 109.342 0 0 0 2060 387 7 079 $2.811.888 275 561 2 327 All debt issued is pooled debt. Total bonds issued is $42,605,000. Total amount of bonds redeemed is $26,550,000. Outstanding bonds at December 31, 1992, is $16,055,000. All taxable value is currently retained by the Housing and Redevelopment Authority. 14 1 `17 ^'t DEBT SERVICE FUND STATEMENTS 15 FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY a component unit of the CITY OF FRIDLEY, MINNESOTA DEBT SERVICE FUND COMPARATIVE BALANCE SHEEP December 31, 1992 and 1991 Assets Cash Investments Total assets Liabilities and Fund Balance Liabilities : Accounts Payable Due to other governments Total liabilities Fund .Balance: Reserved for debt service Total fund balance Total liabilities and fund balance 16 1992 1991 $ $419 413,175 473,604 $413,175 $474,023 -7--04 @A1n 7,681 419 405,494 473,604 405,494 473,604 $413,175 $474,023 FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY a component unit of the _ CITY OF FRIDLEY, MINNESOTA DEBT SERVICE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE December 31_1992 and 1991 1992 1991 Revenues: Interest on investments $48,618 $22.713 Expenditures ... Debt service: Principal payment 265,000 245,000 Interest expense 873,695 892,514 Increment bond issuance costs 23,810 Agent fees 11,002 3,323 Total expenditures 1.173.507 1.140,837 Deficiency of revenues over expenditures (1,124,889) (1,118.124) ^ Other financing sources (uses) : Proceeds of increment bonds 4,026,172 Operating transfers in 11000,895 1,081,374 r-, Operating transfer out (3,970,288) Total other financing sources (uses) 1.056.779 1.081.374 r-, Deficiency of revenues and other - financing sources over expenditures (68.110) (36.750) Fund Balance January 1 473,604 510.354 Fund Balance December 31 r-, $405,494 $473.604 17 18 'i I . - I R" CAPITAL PROJECTS FUNDS STATEMENTS M" 19 FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY a component unit of the CITY OF FRIDLEY MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET December 31. 1992 nth Comparative Totals for December 31. 1991 Liabilities and fund balance North Area/ Liabilities: 117'591 Center Moore Univ.Ind. Johnson Revolving city Lake Area Park §kywood Assets Deposits payable 1,533 30,000 Cash and cash equivalents t ($571) $2,500 Investments 7,766,714 361 119,485 30,000 856,374 0 Total liabilities Receivables (22) Fund balance (deficit) : Accounts 4'172 (50) Reserved for construction 7.819,494 (1 Taxes — _ (50) 0 Total fund balance 7.819.494 7.007) (117.007) O Unremitted Total liabilities and $8.516,486 $2,478 $30,000 $856.324 $� Delinquent 638,322 Interest 86,261 Mortgage — Current Delinquent 30,000 856,324 Deferred Due from other governments 21,588 $8.516.486 $2,478 $30,000 $856.324 $0 Total assets Liabilities and fund balance Liabilities: 117'591 50 Accounts payable Contracts payable Deposits payable 1,533 30,000 856,324 Deferred revenue 638,322 Due to other governments 58,670 361 119,485 30,000 856,374 0 Total liabilities 696.992 Fund balance (deficit) : (50) Reserved for construction 7.819,494 (1 _ (50) 0 Total fund balance 7.819.494 7.007) (117.007) O Total liabilities and $8.516,486 $2,478 $30,000 $856.324 $� fund balance 20 ., i 1 Lake Shore- Area University/ McGlynn Pointe Onan wood Wide Osborne Bakeries 1992 Totals $3,585 $15,000 $20,514 $7,766,714 1195 $5,345 $638,322 $86,261 1991 $953,179 5,561.364 14,428 10,766 495,366 172,889 ._ 65,393 $951,717 952,000 $21,588 23913 $0 $0 165,393 $0 14,780 $15.000 $9,490,461 $8,183,905 5,644 1,132 69 $124,486 8,880 15,000 $16,533 15,086 65,393 $1,590,039 1,447,366 s 3,491 193,998 $256,520 181,841 9,135 O 65,393 195.130 69 15,000 $1,987,578 1,653,173 (9,135) (195,130) 4,711 $7,502,883 6,530,732 (9.135) O O (195.130) 4,711 0 7.502,883 6,530.732 $0 $0 $65,393 $0 $4.780 $15,000 $9,490,461 $8,183.905 21 r FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY 6.720.580 (22.929) 0 Fund Balance (deficit) December 31 a component unit of the ($117.007) $0 ($50) $0 CITY OF FRIDLEY. MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES ExpENDITURES AND FUND BALANCE Year Ended December 31, 1992 With Comparative Totals for Year Ended December 31, 1991 North Area/ Center Moore Univ.Ind. Johnson Revolvina C71ty Lake Area Park Skywood --� I Revenues: Tax increment $2.931,681 Special assessment 112,059 Sale of property 34•363 Interest on investments 405.635 15,104 Rental 86,834 Miscellaneous 206 Total revenues 3.570,778 15,104 0 O 0 Expenditures Professional services 17,475 314 Land purchase 38,465 Site Improvement 116,350 Buildings Refunds to school districts Miscellaneous 11,863 Total expenditures O 184,153 0 314 0 Excess (deficiency) of revenues over expenditures 3.570,778 (169.049) 0 (314) O Other financing sources (uses): Operating transfer in 3,970,288 74,971 264 Operating transfers out (6,442,152) Total other financing sources (uses) (2.471.864) 74.971 O 264 0 Deficiency of revenues and other financing sources over expenditures and other financing uses 1.098.914 (94,078) 0 (50) 0 Fund Balance (deficit) January 1 6.720.580 (22.929) 0 Fund Balance (deficit) December 31 $7.819.494 ($117.007) $0 ($50) $0 22 Lake Shore — Area University/ McGlynn Pointe Onan Wood Wide Osborne Bakeries Totals 1992 1991 23 P-1 $2,931,681 $2,662,381 $112,059 69,591 $34,363 117,500 $420,739 337,142 $86,834 108,414 $206 409 0 0 0 0 0 0 3,585.882 3,295,437 18,281 5,464 194,548 438 4,882 $241,402 258,041 ^ 4,710,946 $4,749,411 54,087 $116,350 19,590 125,000 368.500 $368,500 310,272 35,309 49,377 1.0,912 $107,461 92,689 4,764.536 5,464 0 612.425 438 15.794 5.583.124 859.679 (4,764.836) (5.464) 0 (612.425) (438) (15,794) (1.997.242) 2,435.758 4,756,819 5464 582,153 4,276 19,187 $9,413.422 833,973 (1,877) ($6.444,029) (1,915,347) 4.756,819 5.464 0 580.276 4.276 19.187 2.969.393 (1.081.374) (7.717) O 0 (32,149) 3,838 3.393 972.151 1.354.384 ^ (1.418) 0 (162,981) 873 (3.393) 6.530.732 5,176.348 $0 $0 ($195.130) $4.711 $0 $7.502,883 $6.530.732 23 P-1 GENERAL LONG -TERM DEBT ACCOUNT GROUP i 24 FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY a component unit of the CITY OF FRIDLEY, MINNESOTA _ COMPARATIVE STATEMENT OF GENERAL LONG —TERM DEBT December-31, 1992 and 1991 r-, I- Amount available and to be provided for the payment of general long —term debt Amount available in Debt Service Fund Amount to be provided by future taxes Total available and to be provided General long —term debt payable: Tax increment revenue refunding bonds of 1985 General obligation tax increment refunding bonds of 1990 General obligation temporary tax increment bonds of 1992 Total general long —term debt payable 25 1992 1991 $405,494 $473,604 15,649,506 11,816,396 4,030,000 $16,055,000 $12,290,000 2,540,000 2,805,000 9,485,000 9,485,000 4,030,000 0 $16,055,000 $12,290,000 26 SUPPLEMENTAL SECTION 27 CITY OF FRIDLEY MINNESOTA - DU LE OF ASSESSED VALUATION AND LONG —TER! L FOR THE TA NC - - tNI�NCjr C [►STRICT DECEMBER 31 1992 Redevelopment District Original Tax Capacity Current Tax Capacity Captured Tax Capacity — retained by the Authority Bonds Issues: -- General Obligation I ux Increment Bonds of 1981 General Obligation Tax Increment Bonds of 1982 General Obligation Tax Increment Bonds of 1983 Tax Increment Revenue Refunding Bonds of 1985 General Obligation Tax Increment Redevelopment Bonds of 1985 General Obligation Tax Increment Refunding Bonds of 1986 General Obligation Tax Increment Refunding Bonds of 1990 General Obligation Temp Tax Increment Bonds of 1992C Total bonds issued Amounts Redeemed: Paid Bonds defeased — prior Total amount redeemed Outstanding bonds at December 31, 1992 28 $2,060,387 4,847,079 2,536,327 $2,200,000 625,000 600,000 11,550,000 �e 9,485,000 4,030,000 42,6 50 ,000 (3,270,000) (23,280,000) 000) (26,550, $16,055,000_ F1 CITY OF FRIDLEY, MINNESOTA SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS INCEPTION TO DECEMBER 31, 1992 Sources of Funds: Proceeds of bond sale Tax increments received Special assessments Interest on invested funds Sale of property Rental Home ownership revenue Other Total sources of funds Uses of Funds: Land acquisition Building acquisition Site improvements or preparation costs Installation of public utilities and improvements Bond payments Principal Interest and agent fees Refunding bond issuance cost Payment to refunded bond escrow agent Refund to school districts Refund of tax increment overpayment Administrative costs Other Total uses of funds District Balance Current Year Prior Years Total $ 4,026,172 $40,199,956 $44,226,128 2,931,681 12,714,320 15,646,001 112,059 72,591 184,650 469,357 4,635,553 5,104,910 34,363 501,971 536,334 86,834 463,286 550,120 265,212 10,125 10,125 206 307,028 307,234 7,660,672 58,904,830 66,565,502 $904,041 4,749,411 10,787,235 15,536,646 1,193,971 1,193,971 116,350 3,956,879 4,073,229 1,096,775 1,096,775 265,000 13,935,000 14,200,000 884,697 6,780,312 7,665,009 83,655 83,655 9,257,980 9,257,980 368,500 786,618 1,155,118 94,897 94,897 265,212 3,315,381 3,580,593 107,461 628,878 736,339 6,756,631 51,917,581 58,674,212 $904,041 $6,987,249 $7,891,290 29