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HRA 01/14/1993 - 29639CITY OF FRIDLEY � �� HOIIBING & REDEVELOPMENT AIITHORITY MEETING, JANQARY 14� 1993 ���,.������__��__�����_������������������»������������������������ CALL TO ORDER: Chairperson Commers called the January 14, 1993, Housing & Redevelopment Authority minutes to order at 7:30 p.m. ROLL CALL• Members Present: Larry Commers, Virginia Schnabel, Jim McFarland Members Absent: Duane Prairie, John Meyer Others Present: Barbara Dacy, Community Development Director Rick Pribyl, Finance Director Craig Ellestad, Accountant Jim Casserly, Consultant , Don Fitch, Fridley Dairy Queen Lowell Wagner, 11660 Wayzata Bvld., Minnetonka Jim Hansen, Commercial Sites of Minnesota Ted Krueppus, 6000 Bass Lake Road, Crystal Bob Thein, 1501 North 72nd Avenue Norma Swanson, 361 Rice Creek Terrace � APPROVAL OF DECENiBER 10 . 1992 , HOUSING & REDEVELOPMENT AUTHORITY MINUTES• MOTION by Ms. Schnabel, seconded by Mr. McFarland, to approve the December 10, 1992, Housing & Redevelopment Authority minutes as written. IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERBON COI�IERB DECLARED THE MOTION CARRIED IINANIMOIISLY. l. CONSIDER CONCEPT APPROVAL OF FRIDLEY TOWN SOUARE DEVELOPMENT: Ms. Dacy stated that she would first like to summarize the history and the changes between the Ericson proposal and the current proposal for this site. Ms. Dacy stated that the original development proposal for the former 10, 000 Auto Parts site and the two single family homes which immediately abut the site was originally filed in 1989. Over the course of the past two years, the developer at that time, Scott Ericson, put forward two site plans for Planning Commission and City Council review. The first proposal was for a 28,000 sq. ft. commercial facility, and the second proposal included a Burger King at the west end of the facility with a drive-up window. The City � , �� �� � HOIIBING & REDEVELOPMENT AIITHORITY MTa.. JANUARY 14. 1993 - PAdE 2 Council approved both site plans with several conditions attached. The HRA received copies of those minutes, and a traffic study was developed. So, all the land use parts of this development have been completed. Ms. Dacy stated that in terms of HRA assistance for the original project, there was no formal action on a development agreement; however, there were several informal discussions about the major items that would be contained in the development agreement. The major features the HRA discussed were the tax increment financing assistance up to $250,000 and an equity participation portion of the agreement. The intent of the equity participation was that the HRA would have the money returned to them based on certain criteria including a length of time between when the property is sold and based on a formula for the rate of return to the development. Ms. Dacy stated Mr. Ericson was unable to obtain financing for his project, so that particular part of the development process has not been completed. Ms. Dacy stated the current proposal is being put forth by Lowell Wagner and Don Fitch, former owner of the Dairy Queen property. Mr. Wagner has done a number of commercial developments in the metro area and has worked with Walgreens as part of those developments. Ms. Dacy stated she prepared a comparison sheet between the Ericson proposal and the Wagner/Fitch proposal. In terms of square footage, the building is slightly smaller at 26,150 sq. ft. Instead of the Burger King at the west end of the site, it would be the Dairy Queen with a drive-up window. The size of the Dairy Queen is smaller than the Burger King. There is miscellaneous tenant space of 10,000 sq. ft. as compared to the original 12,000 sq. ft. The building exterior is proposed to be different. Mr. Ericson had proposed a rock-faced block exterior, and Wagner/Fitch are proposing a brick exterior which is consistent with the other materials in the Center City development, as well as a different facade treatment with covered walkway, pillars, and a sign band. Ms. Dacy stated that because of the smaller building size, the necessary parking spaces have been reduced by five spaces, and it also provides more room for setbacks from affected surrounding streets and properties. Also of minor difference is that with the new proposed development, Walgreens would like to have a prescription pick-up window on the east side of the development. Ms. Dacy stated Jim Casserly will discuss two features of the proposed tax increment financing assistance for this project. � HOUBING � REDEVELOPMENT AIITHORITY MTa., JANIIARY 14, 1993 - PAGE 3 Mr. Commers asked Mr. Casserly to outline the differences between this proposal and the previous proposals. Mr. Casserly stated there is really only a couple of differences. His letter dated January 7, 1993, described the two issues that are remaining. The first issue is the amount of assistance. The developer is requesting a maximum of $300,000. The HRA had previously looked at $250,000 in the original Ericson proposal, and that was the amount the City Council seemed comfortable with. The current developer has indicated that, at best, this is a difficult project to do, and they may be looking for some assistance above the $250,000. Mr. Casserly stated the second issue is when does the HRA provide that assistance? That issue was not completely resolved in the Ericson proposal, because Mr. Erickson was unable to get his financing put together. In this instance, what the developer is asking for and what the lenders are looking for is to have all the equity contributions up front. In other HRA projects, they have been able to make contributions or provide assistance at various stages of a project. Often it is done when a project is completed and the City has issued a certificate of completion. There is no hard and fast rule, because projects vary. ,� Mr. Casserly stated the only other issue the HRA addressed a couple of months ago was a recapture arrangement where they would recapture a minimum amount. The issue is if they have a minimum recapture, the lenders would consider that essentially a lien or obligation of the property and would reduce the loan amounts accordingly. That issue has not been worked out. If the HRA gives consensus approval for this project, then staff will work through those issues. He believed most of the other issues have been resolved, and the agreement would essentially be the same as that with Scott Ericson on the previous proposal. Ms. Dacy stated the HRA did discuss the recapture and the equity participation on the Ericson proposal. At that time, it was the HRA's direction to continue to pursue it, but there was no real resolution on the issue. So, the two issues the petitioner wants the petitioner to decide tonight are: (1) concept approval for $300,000 versus the $250,000, and (2) when the HRA will give its assistance. Mr. Commers asked what the Council's issue is with the amount of assistance. Ms. Dacy stated the Council acknowledges that the amount of HRA assistance is the HRA's decision; however, they believe that the previous amount of $250,000 is adequate. � Mr. Lowell Wagner stated he is the President of Wagner Corporation. His partner is Don Fitch. He stated Wagner Corporation is a small ;�� HOIIBINa & REDEVELOPMENT AIIT80RITY MTa., JANLTARY 14, 1993 - PAGE 4 real estate developer located in Minnetonka. The company is tenant-oriented rather than site-oriented. Approximately one year ago, Walgreens came to them and said the project was not going forward at this Fridley site and asked Wagner Corporation to take a look at the project. His company did look at it and, over the last year, they have done several things and talked to many people. They believe the project can be done. Mr. Wagner stated they will be building a 13,000 sq. ft. prototype building for Walgreens. The store is slightly larger than the previous proposal and has a size that now meets the requirements for the American Disabilities Act and gives Walgreens the opportunity to put in all the departments they want. On the design Walgreens needed more room around the building for circulation, and they have removed all parking to the north of the building and made a one-traffic pattern around the building. They pulled in the building slightly on the east/west length of the building. This was done primarily to give them turning room and for the drive-up window for Walgreens. The prescriptions have to be called in ahead of time, and this window will be used only for picking up prescriptions. Mr. Wagner stated that when they changed the dimensions.of the building, it slightly changed their parking layout. As far as the � specifications are concerned, their goal now and for the future is to construct all buildings with the main component being brick. That particular segment of the change in specifications has increased their cost from $85,000 to $100,000. He stated they generally agree with the landscaping which was approved for the Ericson proposal. They do have a couple other ideas for changes, but they will only proceed if the neighborhood and the City are in agreement with those changes. Mr. Wagner stated that as far as tenants, Walgreens is committed, at least at staff level. The Dairy Queen will be plus or minus 2,750 sq. ft. in size. They are negotiating with another tenant that would take between 3,800-5,000 sq. ft. and would be the third major tenant in the building. They are working with two other smaller tenants. Mr. Wagner stated that regarding financing, they have their application in and have a verbal o.k. from the lenders at staff level. The lenders have held up the application until they ascertain that the City is going to back the project. He stated today's financing is very difficult to get, and very few projects are being built today. He stated they need approximately 90� of the center leased and actually signed up before the lenders will release the funds. He stated they still need between 2,300 and 3,500 sq. ft. more leased before they will start the project. Leasing is slow, and he wants the HRA to know that there is a risk � factor. ;'� HOIIBIN(3 b REDEVELOPMENT AIITHORITY MT(3. , JANIIARY 14. 1993 - PA(�E 5. Mr. Wagner stated that regarding the redevelopment agreement, they need the funds up front. At this point, they have committed $240,000 of hard cash into the project. They have also committed all their fees and overhead, and they are still in the position where they have to find another $60,000 in order to make the numbers work. They feel they can do that. Some of the guarantees the HRA can look at to assure the City that there is not going to be a problem are: (1) the financing has to be in place; and (2) the amount of leases have to be satisfactory. They will also have their personal guarantees, both from the development group and themselves individually, and the City will have a guaranteed maximum construction contract. Those are all things they expect to see in the redevelopment agreement. Mr. Wagner stated that regarding the question on recapture, a deal killer would be where it actually says it has to be so much within a certain period of time. Their lenders will not allow that,to be in the agreement, and it basically amounts to a second mortgage on the property. They have no problem with the concept "to share the wealth". They believe they can reach an understanding within the next few weeks with City staff regarding that specific issue. Mr. Wagner stated the $300,000 is not an idle number they have come up with. They have taken a close look at the actual costs for the ,� center which includes the brick and the specifications of Walgreens. The Walgreens store costs substantially more per square foot to build than a typical store. The $300,000 is very important because they are putting a substantial amount of cash into the total project. Mr. Wagner stated it is his understanding that the Council did recommend the $250,000 issue for the Ericson project, but the Council has not had an opportunity to hear this new proposal. Mr. Wagner stated they have been told that the City is very concerned about signage for this project. He stated they understand that and respect that; however, he wanted the HI2A to know that they are having some difficulty with signage for their tenants. He stated this is not the City's problem, but if they lose a tenant over the signage issue, they might have to ask for a variance. . Mr. Commers stated the HRA can make recommendations but has no authority with respect to variances. Mr. Commers stated he believed one of the HRA's concerns with respect to this project was that there was a significant increase in land costs for the Swanson property. Mr. Casserly stated he believed they did feel there was an increase � in land costs, but it seemed like it was a little vague as to what some of the previous costs were. ,—� HOIIBIN(3 � REDEVELOPMENT AIITHORITY MTa., JANIIARY 14. 1993 - PAG'B 6 Mr. Wagner stated that in Mr. Ericson's original proposal, he had anticipated $815,000 for the three pieces of property. At the present time, they are anticipating their costs are going to be approximately $913,000. They had an opportunity to look at the original agreements on these properties, because they did negotiate with Mr. Ericson for a period of time to attempt to buy his position out. One of the properties is $5,000 higher. They now have two of the three properties under contract. Regarding the third property on the north side, there is the possibility that Mr. Ericson still has some rights in that from the old purchase agreement. Today was the final day to cancel that particular agreement. Ms. Schnabel asked Mr. Wagner how they would use the money they are requesting from the HRA. Mr. Wagner stated it doesn't really matter. The money would be fused into the project when they take down the land, all three parcels. Their first draw from the bank will include a lot of things besides the land costs. All their preliminary costs (land, architectural, environmental, soil tests, engineering, title policies, etc. , all the expenses they normally have before starting construction) will be included in their first draw. These costs � are about two-thirds of their soft costs. At that time, they will also have to use the cash that was put into the project as the lenders require that all cash that is required in the project be put up in advance. That also means that they will be putting up their cash with that first draw. Anything that is not covered by the City and by their cash would be a first draw against the construction. !"1 Mr. McFarland suggested that the City work with the lenders regarding inspections on the construction and compare it to the allowable draws on the construction loan. Ms. Schnabel asked Mr. Wagner to give some locations oi other projects his company has built with Walgreens. Mr. Wagner stated they have done six Walgreens transactions. The closest one to Fridley would be Coon Rapids Square which was built about four years ago and was anchored by Walgreens and Old Country Buffet. Other locations with Walgreens include 3207 East Lake Street, 200 West Lake Street, 2643 Central Avenue, 544 South Snelling. The first Walgreens they built was in the Franklin Shopping Center. Other centers they are involved with that are not anchored by Walgreens is Duckwood Square Center (25,000 sq. ft. center) in Eagan anchored by Good Year, a smaller convenience center (Crosstown Square) in Andover, and a center in West St. Paul (23,000-24,000 sq. ft.) in Robert Square on South Robert. Ms. Schnabel asked if Mr. Wagner has any projected rental rates. n. HOIISING & REDEPELOPMENT AIITHORITY MTG., JANQARY 14, 1993 - PAaE 7 Mr. Wagner stated the rental rates will be within a range of $12- 13 per square foot. Ms. Schnabel asked about the timing on this project once construction is started. Mr. Wagner stated that once they begin construction, the timing for construction of the basic center will be about 120 days, depending on weather conditions. Then the tenants have from 30-60 days to move into the center. Their optimum schedule is as follows: If the HRA approves this development in concept, they would use the next 30 days to work on the actual redevelopment agreement. Within the next two weeks, they would put out a mailing to additional prospective tenants. They hope to have adequate leases committed by February 15/end of February. From there, it takes about 60 days to finish all the architectural work, environmental work, etc. If everything fits into place, they would probably open the center for business around November 1, 1993. Mr. Don Fitch stated he is strongly looking for a new place to relocate the Dairy Queen. Mr. Wagner approached him and started discussions after Mr. Ericson's project did not come to fruition. In their discussions, they found that one of the best ways to make ,.� the proj ect successful was for him to become a partner; in this case, providing $245,000 in hard cash. He knows little about development, and he is relying on Mr. Wagner's expertise. He stated he would appreciate any assistance the HRA can provide for this project. Ms. Norma Swanson stated that when Mr. Ericson came to her, the property was under lease to Red Owl. When Mr. Ericson stated he wanted to develop the property, she toid him the circumstances of the lease and that it would concern a buyout. She did not have the property on the market but he could try it. He did that and in the process of doing it, he lost her tenant, Red Owl. At that time, every time his option would run out and he would try to renew it, the price of the property went up. By the last offering, the price Mr. Ericson was offering was about identical to Mr. Wagner's. She stated that because of the problem Mr. Ericson was having trying to obtain financing, she had more confidence in what Mr. Wagner could do with the property. She stated she has lived in this area for 33 years, and she is very concerned about what type of project is built on this property. She wants this development to be something that the City and the people of Fridley can be proud of. She believes Mr. Wagner's proposal with the brick front building will be more appealing to the neighborhood and the City. Mr. Casserly stated this really fits more into the category of a redevelopment proj ect, and the real problem is that the kind of � use the site is being used for cannot afford the cost of the site. The HRA's assistance really goes technically into what amounts to � HOIISINC� & REDEVELOPMENT AIITHORITY MTa., JANIIARY 14, 1993 - PAaE 8 a land writedown; but in actuality, it is bringing the site closer to a market value if the site was cleared and ready for development. He did not think the site is worth $900,000 to a developer. The site is worth $600,000-650,000; but for the kind of use that is being suggested, it is not worth $900,000. That is the crux of the problem. Whether the site is worth that in terms of its value with the existing structures is another issue. Mr. Commers asked the total project cost. Mr. Casserly stated the total project cost is $3 million. Mr. Commers stated there is bound to be a little more risk with the money up front. He is not sure if the dollar amount is a significant• thing. The HRA had set a top on that dollar figure; but it was his understanding that once it exceeded $225,000, then they started talking about participation. He believed the HRA had terms such as the length of time the developer would hold it and other types of terms. In other words, they are giving the incentive based on their analysis of the developer and not someone the developer may sell-the development to within a year or two. Mr. Casserly stated staff did a very rough cash-on-cash return analysis. What probably makes this project work is the strength � of the long term tenants, and the rate of return on a project like this from an investment perspective would be less than on a more speculative-type of project. Ms. Schnabel asked Mr. Fitch what the terms of his lease would be for the Dairy Queen. Mr. Fitch stated they have not totally come to a signed lease agreement, because they are also waiting for HRA action. He and Mr. Wagner have a tentative signed agreement to be general partners in this project, and he is looking at probably having a ten year lease with a couple of five year renewals. Ms. Dacy stated that if the HRA agrees with this proposal, then the HRA can make a motion to approve in concept the two features and direct staff to take the next step in negotiating the development contract and working out some of the details on these other issues. The HRA's other option is to approve what the developer has proposed. Mr. Commers stated the bigger issue for him is what happens on the back side if they go ahead with this project. That is relatively important in view of the fact that this is not a pay-as-you-go arrangement and the HRA has a little more risk than normal. They had an equity participation type of arrangement with the previous developer. The HRA had discussed this in detail at a previous � meeting. � HOIISINa & REDEVELOPMBNT AIITHORITY MTG.. JANUARY 14. 1993 - PA�3E 9 Mr. Casserly stated Mr. Commers is correct; however, he has two thoughts on that issue: (1) the previous developer did not agree to that; and (2) the previous developer's consultant was sending him options and alternatives to it that he never brought to the HRA because the project was not moving forward. It is a proposal that has merit and there are a lot of ways to design an equity participation arrangement. Most of it comes down to what kind of an assumed rate of return do they allow the developer before they have participation. Mr. Wagner stated that if the concept is approved, they would have an opportunity to discuss and negotiate this and bring back a package to the HRA's next meeting. He is quite confident that they will be able to come up with something that is fair. Mr. Commers stated there is also another issue regarding the Dairy Queen. At the last meeting, Mr. Fitch indicated that as far as the condemnation was concerned, the resolution was tied in with the HRA giving some more money on this side of the project. Mr. Fitch stated that if this project does not happen, he does not know of another site in this franchise area that will allow him to relocate economically and feasibly. Mr. Wagner has indicated to him that they strongly need the $300, 000 level to make this project � successful. Even at the $300,000 level and with the money he and Mr. Wagner are contributing to the project, they will still need an additional $60,000. Mr. Wagner has assured him that they will be able to get that $60,000, and he is relying totally on Mr. Wagner's expertise. Mr. Fitch stated that if the development is approved and they go forward with it, his major concern is that the Dairy Queen goes with the development. From a business perspective, he is going to have to take a hard look at whether he still feels he got a fair and just figure for his land and building. One of the things that would be required that scares him the most is that as a result of locating in the new center, he would need to sign a new franchise agreement to the extent that he would become a full Dairy Queen Brazier. The contract would change a little bit from the economic standpoint that his fees and royalties would go up slightly. Mr. Commers asked if it is possible to make the HRA's assistance somewhat contingent upon the HRA being able to come to a resolution with Mr. Fitch on the other side of this transaction. Mr. Casserly stated, yes, it happens all the time in redevelopment projects where an HRA helps in relocating a business. Mr. Fitch stated he.is in no position at this time to say that if the HRA votes "yes" on the $300,000 that he will accept the � Commissioners' Award and walk away with that. ;� HOIISING & RTDTVELOPMENT AIITHORITY MTG.. JANOARY 14, 1993 - PAGL 10 Mr. Commers stated the HRA does not expect him to do that. The HRA is just .trying to determine how the amount enters into this decision and whether it should be contingent upon that based on earlier discussions. It is certainly a permissible contingency on the approval of the $300,000. Mr. Commers stated he is a little concerned about the transaction and that it is not the normal way the HRA operates. On the other side, this proposal seems like a reasonable use for the property based on all the attempts that have been made to try to get a development on that property. He is not overly concerned about the $300,000 versus the $250,000; however, he is concerned about why the Council is reluctant about the $300,000. He is inclined to believe that the assistance should be tied to the other condemnation in some way. Mr. Fitch is certainly entitled to get a fair market value for his property; but if the IiRA winds up with a iegal battle and a lot of legal fees on that side of the transaction, that does influence what the HRA should contribute to the development. Mr. McFarland and Ms. Schnabel agreed with Mr. Commers. Mr. Fitch stated he has one big concern about the HRA having a contingency on this project involving him. That is not totally ,,-, fair to Mr. Wagner and the project. Mr. Wagner has indicated to him that he would still be asking for $300,000; and it has nothing to do with the Dairy Queen being involved in the project. Since he is involved in the development, it does solve his location problem; but, by the same token, the combination of that location and the development of Fridley Town Square development are two separate issues. MOTION by Mr. McFarland, seconded by Ms. Schnabel, to approve in concept the Fridley Town Square project with an incentive of up to $300,000 and offering assistance "up front" as equity, subject to the equity participation details being mutually agreed upon, and contingent upon resolving the condemnation issues with Don Fitch. IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPER80N COMMERB DECLARED T8E MOTION CARRIED Q1�TANIMOIIBLY. . Mr. Commers stated that the HRA is very interested in this project and hopes the developers can put the project together. The HRA would certainly like to see this site redeveloped. It has been sitting empty for a very long time. Mr. Wagner thanked the HRA. He stated this is going to be a partnership, and they want to be very open with the City and the HRA. � r"� HOIIBINQ � REDEVSLOPMENT AIITHORITY MTG., JANUARY 14, 1993 - PAG� 11 2. REOUEST TO REMOVE U.S. WEST OVERHEAD LINES FROM UNIVERSITY AVENUEfMISSISSIPPI STREET AS PART OF THE MISSISSIPPI STREET IMPROVEMENT PROJECT: Ms. Dacy stated this is a carryover from the NSP project to place their overhead lines underground. The Engineering Department has notified her that there are three poles on the west side of University Avenue and north side of Mississippi Street, east of t�e Holly Center parking lot, that have telephone lines on them. The City has to have a separate contract to install those lines underground. The Engineering Department obtained a cost figure of $5,214.00, and staff is recommending that the HRA authorize staff to execute a contract with U.S. West to have those lines installed underground. She did an analysis on the Mississippi Street improvement budget, and they are well within budget. MOTION by Ms. Schnabel, seconded by Mr. McFarland, to authorize staff to execute a contract with U.S. West to remove the overhead poles on University Avenue and install them underground. IIPON A VOICB VOTE, ALL VOTING AYE, CBAIRPER80N COAQ3ERB DECLARED THE MOTION CARRIED IINAIdIMOIISLY. 3. CLAIMS AND EXPENSES: ^ Mr. Pribyl introduced Craig Ellestad who has replaced Paul Hansen. Mr. Harisen has been promoted to another position in the Finance Department. He stated he and Mr. Ellestad will share the duties of the Finance Department at the HRA meetings. a. Check Register (2269-2282) MOTION by Ms. Schnabel, seconded by Mr. McFarland, to approve the check register dated January 8, 1993. Mr. Commers stated the HRA is incurring a lot of legal fees, and they may need to make an analysis of those fees. Mr. Pribyl stated that a lot of the legal fees were incurred over the last 6-8 weeks associated with the acquisition of Lake Pointe. He did not believe the HRA will see that level occurring the rest of this year. Mr. Commers state�l he agreed; however, he did believe that overall, the legal fees have been higher even without the acquisition of Lake Pointe. He asked staff to get an analysis on the 1992 legal fees. Ms. Dacy stated staff will have the 1993 budget prepared for the next meeting. Staff will make a special note to evaluate �, the ongoing legal fees. ,°� 80II8ING & REDEVELOPMENT AIITHORITY MTG., JANQARY 14, 1993 - PAGB 12 QPON A VOICE VOTE� ALL VOTINa AYE� CHAIRPERSON COMMERB DECLARED T8E MOTION CARRIED IINANIMOIIBLY. 4. RICE PLAZA UPDATE; Mr. Commers stated that as they have discussed in the past, it may become a point of economic feasibility to decide what the HRA should do with the Rice Plaza property. Ms . Schnabel noted that the owner of Cinnamon Skin Tan has not paid any rent since August. Does the owner plan to make a lump sum payment in January? Mr. McFarland stated he believed Terrie Mau, the owner of Cinnamon Skin Tan, has sold the business. Ms. Dacy stated that as part of the HRA budget, it might be appropriate to take another look at what should be done with this property. 5. ST. WILLIAMS' SENIOR HOUSING PROJECT UPDATE: Ms. Dacy stated that at this time St. Williams has not requested any tax increment financing assistance. This is a much smaller ,.� project than what was previously proposed. 6. LAKE POINTE PROPERTY UPDATE: Mr. Pribyl stated that at this point in time, the City has basically completed the transactions that were originally estimated to be financed by the temporary tax increment bond. They had a settlement on the bond issue itself on December 14, 1992, and on December 15, 1992, they actually wired $4,230,000 to Minnesota Title to complete the transaction. As he has heard, the City now has title to the property. Mr. Pribyl stated City staff has been working with Anoka County to try to reduce the taxable value to a lesser value, thus resulting in a smaller tax payment for the delinquent taxes that were outstanding in 1990, 1991, and 1992. That process basically is still in process. The only thing remaining to be completed in that process is a comment period which the school districts have in regard to the reduction of market value. The school districts get involved any time there is an increase in excess of $10,000 in taxes, and they do have a comment period prior to the final approval of the reduction in value, The payment is required by the County to show good faith in regard to the payment. So, the City is just waiting to hear from the County as to whether that valuation reduction has been completed. � Mr. Casserly presented the final official "Statement of Proceedings" to the HRA Chairperson.