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CITY OF FRIDLEY
A G E N D A
HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, APRIL 7, 1994, 7:30 P.M.
Location: Council Chambers
Fridley Municipal Center
CALL TO ORDER
ROLL CALL
APPROVAL OF MINUTES: March 17, 1994
ACTION ITEMS:
CONSIDER PROGRAM CHANGES TO
SINGLE FAMILY REHAB PROGRAM . . . . . . . . . . . . . . . 1.1 -1.6
CONSIDER RESOLUTION AUTHORIZING
MHFA FIRST TIME HOMEBUYER APPLICATION. . . . . . . . . . 2.1 -2.4
CONSIDER RESOLUTION
AUTHORIZING 1994 HOME APPLICATION. . . . . . . . . . . . 3.1 -3.3
CLAIMS AND EXPENSES. . . . . . . . . . . . . . . . . 4.1 -4.3
INFORMATION ITEMS:
CONTINUE DISCUSSION OF SOUTHWEST QUADRANT. . . . . . . . 5.1 -5.8
UPDATE ON LAKE POINTE MARKETING . . . . . . . . . . . . . 6.1
OTHER BUSINESS•
ADJOURNMENT
HOUSING & REDEVELOPMENT AUTHORITY MEETING. MARCH 17, 1994 - PAGE 2
HUD grant, and the remaining portion of the funds would be conveyed
to Westminster at a later time.
Ms. Dacy stated the contract is structured such that it provides
assistance via a land writedown. However, the funds, in essence,
would be used for what the contract defines as "quality
enhancements ". Schedule D in the development contract identifies
those enhancements. Those enhancements essentially consist of both
architectural enhancements and landscaping and irrigation
improvements.
Ms. Dacy stated the $83,000 represents about 3% of the total
project costs. Through the tax increment, the HRA will recover its
assistance over a period of about 3 1/2 years. In total, Mr.
Casserly has projected that through the remaining part of the
district, about $250,000 of tax increment will be created as a
result of the .project.
Mr. Commers asked the status of the project in terms of actually
going forward with construction.
Mr. Doug Mayo, Westminster, Inc.., stated they are still waiting for
their permanent financing from HUD, and he expected a commitment
from HUD in about. one to two weeks. After that commitment, it will
take about one month for the loan to close with HUD so they are
looking at construction beginning around May 1.
Mr. Meyer asked the type of materials for the .exterior
construction, interior furnishings, amenities, etc.
Mr. Mayo stated it is a three - story, 51 -unit, building of wood
frame construction with brick veneer. There are gables and false
chimney enhancements as requested by the City. Regarding the
interior amenities, there are lounges on each floor serviced by an
elevator. There is a community room with a small kitchen on the
first floor. There is a common balcony on the second floor and a
patio on the back side of the first floor for tenant use.
Mr. Meyer asked about air conditioning.
Mr. Mayo stated that part of the capital grant advancement from HUD
will be for air conditioner sleeves, and part of the tax increment
from Fridley will be for the purchase of air conditioners as HUD
does not cover air conditioning. All units and common community
spaces will be air conditioned.
Mr. Meyer asked Mr. Mayo to describe the method of selecting
tenants for the building and the requirements of.tenants.
Mr. Mayor stated there are basically two criteria for tenant
selection: (1) One member of the household must be 62 years of
HOUSING & REDEVELOPMENT AUTHORITY MEETING. MARCH 17. 1994 - PAGE 3
age or older; and (2) The tenants) must be low income -- criteria
set by HUD which is about $15,000- 16,000 per year.
Mr. Mayo stated that regarding the tenant selection, they have been
maintaining an interest list of people who have heard about the
project, and about 200 names are on that list. They will start
marketing the development about 90 days before the completion of
the project. They will contact all the people on the interest
list. They will advertise through newspapers, senior centers, and
other organizations that service the elderly. Applications will
be taken on a first - come /first -serve basis and incomes will be
verified to make sure the applicants are income - eligible.
Mr. Meyer asked if any priority can be given to Fridley residents.
Mr. Mayo stated that because of the nature of federal involvement,
they cannot give priority to any group. However, most of the
interest has come from people living in Fridley or in surrounding
communities, or from people who lived in Fridley at one time and
want to move back into the community. He expected that most of
the tenants will be people from Fridley or the northern surrounding
suburbs.
Ms. Schnabel asked about the approximate date of completion for the
proj ect.
Mr. Mayo stated that if they are able to begin construction in
early May, they anticipate completion by early December.
Mr. Mayo stated Westminster created a separate entity by the name
of Norwood Square, Inc. HUD requires that they create a separate
non - profit entity to serve as the owner of the property. Norwood
Square, Inc., will be the actual receiver of the loan from HUD and
will be using the funds for tax increment. Westminster is the
sponsor and developer of the project and will provide property
management. Norwood Square, Inc., is affiliated with Westminster,
Inc., in that Westminster appoints the Board of Directors. Right
now, all the Board of Directors are members of the community. Once
the project is up and operating, residents will also be members of
the Board of Directors.
MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve "A
Resolution Authorizing Execution and Delivery of a Contract for
Private Redevelopment By and Between the Housing and REdevelopment
Authority in and for the City of Fridley and Norwood Square, Inc."
and to authorize the Executive Director and Chairperson to execute
the development contract.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 17, 1994 - PAGE 4
Mr. Bruce Nelson, President of Norwood Square, Inc., stated that
on behalf of the other members of the Board of Directors who could
not be present at the meeting and the future residents of this
building, he wanted to thank the HRA for its support of this
project. A lot of people have put in a lot of work to put this
project together.
2. AWARD BID FOR LAKE POINTE MAINTENANCE PROJECT:
Ms. Dacy stated the low bidder for the Lake Pointe development
maintenance project for 1994 was Innovative Irrigation with a bid
of $20,999. Staff recommends that the HRA award the bid and
authorize the contract with Innovative Irrigation.
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to award the bid and
authorize execution of the contract with Innovative Irrigation for
1994 Lake Pointe maintenance in the amount of $20,999.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
3. CONSIDER AGREEMENT FOR LEGAL SERVICES WITH CASSERLY MOLZAHN
& ASSOCIATES, INC.:
Mr. Commers stated the only issue he would raise is that there
should be a provision in the contract which requires a certificate
of insurance.
Mr. Casserly stated he can provide that.
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the
"Agreement for Legal Services Between the Fridley Housing and
Redevelopment Authority (HRA) and Casserly Law Office, P.A." with
the added provision that requires the submission of a certificate
of insurance.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
4. CLAIMS AND EXPENSES:
MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the check
register (checks 25042 - 25078) with the exception of check 25054
which was voided.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
5. UPDATE ON SCATTERED SITE PROGRAM:
560 Hugo Street N.E.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 171994 - PAGE 5
Mr. Fernelius stated that staff's attempts to negotiate with the
owner have been unsuccessful, and the owner is no longer interested
in pursuing negotiations.
513 Fairmont Street N.E.
Mr. Fernelius stated this matter is now in the hands of the City
Attorney and the City's Code Enforcement Officer who are pursuing
action to have the building demolished.
187 Longfellow Street N.E.
Mr. Fernelius stated this is a one story single family home, 480
square feet, without a basement which was built in 1940. The lot
is a buildable lot. The property has been inspected and there are
substandard electrical, wiring, plumbing, and mechanical systems.
It has old windows and doors and a number of structural
deficiencies. In the opinion of the inspector, the property should
be demolished. Improvement of the structure would cost more than
the structure is worth. In all likelihood, the City would deny a
building permit if the owner did apply.
Mr. Fernelius stated the property has been appraised, and staff
would like authorization from the HRA to proceed to negotiate an
offer with the property owner within l00 of the appraisal amount.
8280 East River Road
Mr. Fernelius stated this is a one story single family rambler
about 900 square feet in size. The lot is a buildable lot. The
property has been visually inspected from the outside, and it
appears to have some structural problems and has lacked deferred
maintenance.
Mr. Fernelius stated the property has been appraised, and staff
would like authorization from the HRA to proceed to negotiate an
offer with the property owner within 10% of the appraisal amount.
Mr. Commers asked how these numbers fit within the HRA's overall
budget.
Mr. Fernelius stated that both properties fit within the general
parameters of the budget for general acquisition which was about
$50,000 per property.
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to authorize staff
to negotiate an offer of purchase within 10% of the appraised
amounts with the property owners of 187 Longfellow Street and 8280
East River Road.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 17, 1994 - PAGE 6
6. 1994 HOME FUND APPLICATION:
Mr. Commers stated that in 1993, the HRA applied for and received
$70,000 in HOME funds which were matched with $17,500 in HRA funds
for the housing rehabilitation program. He stated that these funds
are being provided again this year, and he could see no reason for
staff not to go ahead and make another application.
Ms. Dacy stated staff did anticipate this application, and a
matching amount was put into the current 1994 HRA budget. She
stated staff will proceed with the application.
7. CONSIDER TIF REQUEST FROM SCOTT LUND:
Ms. Dacy stated Scott Lund, owner of Rite -Way Mobile Home Repair,
is proposing to build a 13,000 square foot industrial office /ware-
house building which he will own and maintain. Mr. Lund has
applied for SBA funding. He is also currently going through the
process for approval of a plat request and a rezoning request.
Ms. Dacy stated Mr. Lund has submitted preliminary numbers and the
cost of the project. Staff advised him of the HRA's policy about
tax increment financing assistance which is up to 50. In this
case, staff is recommending a pay -as- you -go approach, and 50 of Mr.
Lund's initial cost estimate of the project costs is slightly less
than $20,000. Mr. Lund has received additional -information from
his contractor about the cost of the project, and he is going to
have to increase the cost of his financing amounts with SBA.
Ms. Dacy stated that staff is looking for concurrence from the HRA
to proceed with negotiations with Mr. Lund. This project is
located in the Onan district. Assisting this project meets the
"But -For" test and the tax increment financing requirements. The
Onan district is about four years old, and assisting this project
is going to enable the HRA to continue to receive tax increment
back from the County according to state law.
Mr. Commers asked about the use for the building.
Mr. Lund stated he is a contractor in the business of transporting
and installing mobile homes. He has been located on Central Avenue
for the last 21 years between two locations, and he has outgrown
these facilities. He stated this new building will be primarily
for his business.
Mr. Commers asked how many people Mr. Lund employs.
Mr. Lund stated he has 11 full time employees and in the summer
months he hires 4 -6 part time people. This new building will
increase his operation significantly. One criteria for SBA
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 17, 1994 - PAGE 7
financing is the creation of new jobs, and he anticipates 68 new
full time hires with this new facility.
It was the consensus of the HRA members that staff proceed to
negotiate a development contract with Mr. Lund for this project.
8. UPDATE ON RICE PLAZA DEMOLITION:
Ms. Dacy stated the demolition of Rice Plaza has been completed.
9. REVIEW STATUS OF SOUTHWEST QUADRANT PLANNING•
Ms. Dacy stated staff would be making a presentation to help the
HRA start thinking about redevelopment of the southwest quadrant.
The purpose of the discussion is have the HRA answer the following
questions:
1. What is the HRA's desired land use scenario?
2. What is the acceptable level of subsidy to achieve the
desired land use scenario?
3. What is the desired timeframe to accomplish the preferred
development plan?
Ms. Dacy stated staff will be making this same presentation to the
City Council on Monday, March 21.
Ms. Dacy stated she would briefly review the major comments staff
received from interviews with housing developers, and she would
show examples of some of their developments. From the interviews,
staff was able to develop three scenarios on which to base the
HRA's discussion. It also enabled Mr. Casserly to make some tax
increment analyses to give the HRA a feel for the range of the
options.
Ms. Dacy stated Mr. Casserly will present and review a chart
showing the tax increment that would be necessary for each type of
scenario. She will finish with a brief presentation about some of
the design and land use issues.
Ms. Dacy stated there are four major points that came out of the
interviews with the housing developers:
1. Housing is a viable land use with special attention to
site design and amenities. They talked about townhomes,
condominiums, and apartments.
2. Commercial development would be limited to neighborhood
oriented uses .and less than 25,000 square feet. Because
of the current state of the commercial market, obviously
the 100,000 square foot strip mall is no longer a
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 17, 1994 - PAGE 8
reality. Instead, they heard that a smaller commercial
building mixed with housing might be more appropriate.
3. Owner - occupied units would be in entry level market. The
entry -level market being priced at $80,000 - 110,000.
4. Rehabilitation of abutting apartment buildings should be
incorporated into redevelopment. The developers pointed
out the condition of surrounding land uses, specifically,
the apartment buildings to the west which are at an age
of the life cycle where they need rehabilitation.
Ms. Dacy reviewed examples of developments for Rottlund
Development, Bel Aire Construction, Laukka /Jarvis, and George
Sherman & Associates.
Rottlund Development specializes in an owner- occupied
townhouse development.
Bel Aire Construction (Jim Winkels in .cooperation with
LaNel Financial Group) has already done a schematic for
the southwest quadrant which is a model for the mixed use.
approach - -a commercial building in.the.northeast.corner
of the site at the intersection of University and
Mississippi Street, two three -story apartment buildings,
rental townhomes in the southeast corner of the site.
This developer brought to staff's attention the fact that_
they might want to include the apartment buildings in the
redevelopment for rehabilitation.
Laukka /Jarvis specializes in three -story condominium
developments at a higher density. They were a little
more cautious about the site.
George Sherman & Associates' primary. experience has been
in rental and in the affordable housing market.
Ms. Dacy stated Mr. Casserly based his analysis on the models
proposed by Rottlund Development ( townhomes) , Bel Aire Construction
(apartments /commercial), and Laukka /Jarvis (owner- occupied
condominiums).
Mr. Casserly reviewed the "Comparison of Proposals" he had
prepared. He stated each proposal has its pros and cons, but it
gives the.HRA an idea of what could be done on the site. He
believed they might need to have a little more understanding of the
market to see if the condominium approach would be saleable.
Ms. Schnabel asked if the market for townhomes was very strong.
Ms. Dacy stated the developers seemed to think that the townhome
market' is very strong. There are seniors, empty- nesters, and
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 17, 1994 - PAGE 9
single, professional people who are looking for alternative
housing.
Ms. Schnabel stated she would like to know more about the
condominium market.
Ms. Dacy stated she had prepared some design recommendations for
any one of the three options:
1. Require building designs which are compatible to existing
developments, but have a timeless, classic appearance;
avoid "dating" the development.
• Colors of the building materials; traditional versus
contemporary
• Architectural features: chimneys, roof slopes,
fences, balconies, window designs
• Types of building materials: Brick has been the
theme in the Center City District (although
different colors).
2. Locate the buildings to reverse the suburban parking lot
appearance. Do not isolate the development from the rest
of the intersection.
• Northwest and northeast corners already have large
parking lots.
• Replicate the location of the Target Office building
near the corner of the intersection.
• Create a "center" of activity and mass versus a void
of wide open spaces.
• Housing units should face Mississippi Street;
commercial building in immediate corner.
• Prioritize underground parking garages to avoid
future deterioration of.detached garages.
3. Name the development with the theme or word Mississippi.
It will connect Mississippi Street (Main Street) with our
natural resource, the Mississippi River.
4. Install interior walking paths and areas for private
recreation; consider a small public space?
5. Install compatible lighting systems with existing light
. standards along street.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 17, 1994 - PAGE 10
6. Install extensive landscaping treatments to welcome and
soften appearance; decorative fencing instead of chain
link fence or a vegetative fence.
7. Site can handle a variety of densities and building sizes
and masses.
Mr. Burns stated the basic question is: Does the HRA accept
housing as the land use for the southeast quadrant?
Ms. Schnabel stated she has given this a. lot of thought. It is her
feeling that they are getting nowhere fast by waiting for a
commercial development, and she is beginning think that they should
go to residential of some type. She believed that if strip
commercial is still viable for Fridley, then the northeast property
(10,000 Auto Parts) would have developed quicker even with
financing problems.
Ms. Schnabel stated that even though they may call this area their
downtown area and would like to see it as a commercial area, she
did not think it will happen. There has been an explosion of
commercial development north of Fridley near Northtown, and that
seems to be the hot spot for commercial development, leaving the
southwest quadrant kind of dangling. Part of that is economics,
but part of it could be that Fridley's Center City area is not
viewed. as a good commercial site by commercial developers.
Therefore, the HRA should consider redirecting their focus for the
southwest quadrant. She now believed that residential is more
viable, and she would support multiple housing on this site.
Mr. Meyer stated he is familiar with the Rottlund townhome
development on 85th and East River Road. It is very popular, it
looks nice, and has marketed well. However, he is trying to
visualize that type of townhome development in the southwest
quadrant. This is a block landlocked by existing commercial,
access, and heavy traffic.
Mr. Meyer stated the HRA's previous hopes for the southwest
quadrant back in the days of the Louis Lundgren proposal were for
residential, and the commercial would have come along as part of
the residential. That was the HRA's ideal for that corner, and he
believed it is still a valid dream.
Mr. Commers stated the HRA has always looked at a mixed development
on this site, and the emphasis has always been greater on the
residential than the commercial. He stated he did not have any
fundamental problems with what staff has presented; however, he
believed the site could support a little commercial. He did not
know that they would want $70,000 townhomes on the site, and he was
not sure that they could market $125,000 condominiums. The bigger
factor is how much money can they eat?
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 17, 1994 - PAGE 11
Mr. Burns stated he believed a residential development would
undoubtedly give a "shot in the arm" to the commercial businesses
across the street in Holly Center.
Mr. Meyer stated that brings up a concern on his part, and that is
that he is not eager to create competition for Holly Center. Holly
Center has had problems in the past, which shows the fragility in
the heart of Fridley. By encouraging commercial, would they create
a blight area similar to Rice Plaza?
Mr. Commers stated he did not believe the HRA had ever put a big
emphasis on commercial. It was always the service -type businesses
with some type of residential.
Ms. Schnabel stated there was one proposal for commercial at street
level and all residential above. Occasionally, the reference to
senior housing has come up. With the Westminster development, what
is the City's saturation point in terms of gearing toward senior
housing or low income housing?
Ms. Dacy stated that in terms of low income housing (which is the
specific market for the Westminster project), there is a three year
waiting list for housing at Village Green. The fifty units
proposed by Westminster will not significantly impact that list.
She believed there is always a market for low income housing.
Maxfield, in the housing study, said Fridley had an initial demand
for market rate housing of about 100 units with an additional 200-
300 units by the year 2010.
Mr. Commers stated he is not happy with the numbers in Mr.
Casserly's analysis, and how these numbers would work with other
projects. He stated the HRA should probably review their cash flow
position again.
Mr. Burns stated he would like the HRA to answer the three
questions if they are prepared to answer them, and staff needs to
know how fast the HRA wants them to move on this. It is still
possible to do a 1994 project, but they first need to do an
appraisal on the Suh property and begin acquisition negotiations.
This is a very important issue for the HRA, and he can understand
if the HRA would like to take another month to make a decision.
Ms. Schnabel stated she would like to get the input from the City
Council and the other HRA members.
Mr. Meyer asked why the urgency for getting something going in
1994. He believed it is a good idea to get an appraisal on the Suh
property now, but why rush into anything? There are a lot of
things fermenting. Employment is edging up, the economy is
strengthening up a little, and there might be a new look on various
developments by the end of 1994/1995. Once they commit themselves
HOUSING & REDEVELOPMENT AUTHORITY MEETING. MARCH 17. 1994 - PAGE 12
to a land use, it is gone. He would like to see them hold off
during 1994.
Mr. Commers stated he, too, did not feel the same sense of urgency
as the staff seems to feel.
Mr. Casserly stated this is a pre -1979 district and as time goes
by, depending upon what the Legislature does or does not do, that
may limit a little bit their options because they may not have the
duration they want in order to generate the tax increment.
Mr. Casserly stated if residential seems to be the desirable use,
there are some things.going on in the marketplace today which are
certainly attractive - -low interest rates and some demand.
Depending on the type of housing, it might require less subsidy on
the part of the HRA. On the negative side, once the HRA selects
the use for that corner, that is probably going to be the use for
many decades.
Ms. Dacy stated that because of its size (10 acres), the southwest
quadrant is the largest piece of land area available for a
residential or mixed use• development to. satisfy the housing demand
or housing needs as. identified by the housing study. In addition,
there is some pressure in terms of one of the existing landowners.
Mr. Commers stated he-is-..in favor of getting an appraisal on the
Suh property, because he is very concerned about what the.cost of
that land will be.
Mr. Burns stated that if they are not going to do any negotiating
yet this year, an appraisal would be worthless.
Mr. Commers asked if they could have the City Assessor look at the
property.
Councilmember Billings stated that he would encourage the HRA to
not throw away their vision because they feel some time pressures.
In the final analysis, they are making a decision on a land use
that will be there for many years, and it is a decision that needs.
to be made very carefully.
Councilmember Billings stated that referring to the Bel Aire
proposal, it does not show access back into the Sylvan Hills
neighborhood. They need to keep in mind that there needs to be
some type of northern access into that neighborhood, because past
experience shows that the neighborhood does want that access.
Mr. Burns asked if it would be beneficial to organize some tours
with the City Council and HRA members.to some of the developers'
other projects.
Mr. Commers stated that might be a good idea.
d
HOUSING A REDEVELOPMENT AUTHORITY MEETING, MARCH 17, 1994 - PAGE 13
Mr. Commers stated he would have no objection to continuing this
discussion until the April 7, 1994, meeting. He would also like
staff to provide the HRA with the applicable portions of the
Maxfield housing study for their review.
Ms. Schnabel stated she also would like to see some market value
figures on the Suh property.
ADJOURNMENT:
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to adjourn the
meeting. Upon a voice vote, all voting aye, Chairperson Commers
declared the motion carried and the March 17, 1994, Housing and
Redevelopment Authority meeting adjourned at 10:35 p.m..
R sp ctfully s itted,
'ryn-# Saba
Recording Secretary
t
r _
1.1
Community Development Department
HOUSING. AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 30, 1994 /0.,
TO: William Burns, Executive Director of HRA m4V.
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Proposed Changes to Housing Rehabilitation Program
Over the past month, staff has developed a number of
recommendations on ways to improve the housing rehabilitation
program.
Background
Our first attempt to get the programs operational produced mixed
results. In general, initial demand for the program fell short of
our expectations. Moreover, the application and approval process
took too long. In addition, we experienced several delays due to
ongoing negotiations with our lenders and hiring and training rehab
inspectors. In the end, some applicants became discouraged and
withdrew from the program. However, most who were eligible did
continue through the application process. Attached for your review
is a flow chart which outlines the application process and time -
frame.
Problems Encountered
As briefly discussed above, we experienced several problems with
the program, including:
1. Application process took too long and required a significant
wait for most people.
2. Prescreening was not a useful tool for selecting loan or
mortgage applicants.
3. The need for HRA deferred loans was diminished due to the fact
that MHFA reduced its home improvement loan rates.
4. The housing rehab inspections took too long and were not
useful for the homeowners. Moreover, the inspectors found few
violations.
1.2
Proposed Changes to Housing Rehabilitation Program
March 30, 1994
Page 2
Recommendations
In order to make the programs more successful, we would recommend
the following changes:
1. Take applications on a first -come, first -serve basis and
eliminate prescreening. This action would reduce the
application process significantly and make the programs more
accessible to homeowners. Prescreening would, however, be
used for selecting candidates for home improvement grants.
2. Provide deferred loans to applicants who cannot qualify for
all of the necessary home improvement loan financing.
Applicants who need "gap financing" could receive a deferred
loan through the HRA for up to $3,750. The deferred loans
would accrue interest at the same rate as the MHFA loan but
would not have to be repaid until the home is sold.
Deferred loans would still be provided under the Home Mortgage
Assistance Program to help with down payments and closing
costs.
3. Eliminate rehab inspections for loan and mortgage programs.
Neither Fannie Mae or MHFA require an initial inspection, and
this requirement adds time to the application process. Most
rehab work will require a building permit, and the City would
conduct an inspection anyway.
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1.3
1.4
Housing Rehabilitation Program
Flowchart
Marketing & Advertising
(05/15/93 - 06/15/93)
30 Days
Application Window
(06/14/93 - 07/16/93)
32 Days
Applications: 61
Prescreening Evaluation
(07/19/93 - 08/06/93)
19 Days
Applications: 48
Home Improvement
Grant Program
1. Title Checks (ACCAP)
2. Inspections and Work
Write -Up (ACCAP)
3. Out for Bid (ACCAP &
Homeowner)
4. Bid review and approval
(ACCAP, Homeowner and
Housing Coordinator)
5. Preconstruction Mtg.
6. Interim
Inspections
7. Final
Inspection
8. Contractor Paid
9. Project Close -Out
Notification
(08/11/93 - 08/13/93)
2 Days
Applications: 48
IHome Improvement Loan or Home Mortgage I
Assistance'Programs
1. Inspections (Contract Inspectors)
2. Follow -up letter to homeowner
from Housing Coordinator
3. Homeowner completes credit application
and gets estimates.
4. Application returned to Housing Coord-
inator; forward to lender for review
and underwriting.
5. Lender conducts loan underwriting
and notifies Housing Coordinator of
decision.
6. HRA reviews package and gives final
approval.
7. Bank closes on primary and deferred
loans with borrower.
8. Final inspection and disbursement to
borrower.
Home Improvement
Grant Program
Rank order applica-
tions, based on:
1. Age of property
2. Condition of
property
3. Scope of Work
4. Applicants with
highest scores
referred to
ACCAP for
processing
Housing Rehabilitation Program
Proposed Flowchart
I Marketing i Advertising I
April 1994
Application Intake
May 1994
Prescreening Evaluation
Examine application and
determine if applicants
meet income, credit, &
other basic tests to
establish eligibility
May 1994
Home Improvement
Loan Program
1. Send applicant to
lender for pro-
cessing.
2. Lender reviews
application and
if, acceptable
closes loan.
3. If applicant has
financial gap,
lender contacts
Housing Coordinator.
4. If necessary, HRA
Deferred Loan of
up to $3,750 (25 *)
can be used to fill
gap.
5. HRA funds disbursed
after work is comp-
leted.
1.5
Home Mortgage
Assistance Program
1. Send applicant to
lender for pro-
cessing.
2. Applicant app -
aches lender w/
pre - application,
and plans /specs.
3. Lender reviews
loan and if
acceptable sends
request to HRA
for Deferred Loan
Approval.
4. Lender closes both
mortgage and
deferred loan.
5. HRA funds disbursed
at closing.
Housing Rehabilitation Program Budget
1993
1.6
1994
Loans /Grants
Loans /Grants
Funds
Program
---------------------------------------------------------------------
Budgeted
Approved
Budget
Expended
Home Improvement
22
14
$242,127(a)
$169,094
Grant Program
Home Improvement
26
2(b)
$60,000
$2,722
Loan Program
Home Mortgage
16
0(c)
$100,000
$0
Assistance Program
64
16
$402,127
$171,816
1994
Notes: a) Does not include $26,903 admin. paid to ACCAP
b) 14 applicants are still waiting for estimates
c) 2 applications are in process with United Mortgage
d) Funds include $125,000 (CDBG) available July 1, 1994 and $70,000
in HOME funds yet to be approved by County.
e) Includes unused funds from 1993
f) Includes unused funds from 1993
Loans /Grants
Loans /Grants
Funds
Program
---------------------------------------------------------------------
Budgeted
Approved
Budget
Expended
Home Improvement
15
0
$175,000(d)
$0
Grant Program
Home Improvement
32
0
$120,000(e)
$0
Loan Program
Home Mortgage
33
0
$200,000(f)
$0
Assistance Program
80
0
$495,000
$0
Notes: a) Does not include $26,903 admin. paid to ACCAP
b) 14 applicants are still waiting for estimates
c) 2 applications are in process with United Mortgage
d) Funds include $125,000 (CDBG) available July 1, 1994 and $70,000
in HOME funds yet to be approved by County.
e) Includes unused funds from 1993
f) Includes unused funds from 1993
r
r �
2.1
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 30, 1994
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: First -Time Homebuyer Program
The Minnesota Housing Finance Agency (MHFA) has announced that they
will again sell bonds for the Minnesota Cities' Participation
Program this spring. Communities throughout the state can access
up to $4 million in mortgage revenue bond authority for loans to
first -time homebuyers. The MHFA will charge a small processing fee
but will cover all of the bond issuance costs.
Last year, the City applied for an allocation of $2,249,000 but
only received $1,161,000. The funds became available in early
October and were returned to the state -wide pool on March 15, 1994.
A total of six loans were in process at the time the commitment
term ended.
This year we plan to apply again; however, our request will be
scaled back somewhat to around.$1,500,000. MHFA establishes all
guidelines for the program such as income limits and mortgage
amounts (summary is attached).
Recommendation
Staff recommends the HRA approve the resolution authorizing staff
to prepare an application for the 1994 Minnesota Cities'
Participation Program.
GF:ls
M -94 -175
2.2
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE SUBMISSION OF AN
APPLICATION FOR THE MINNESOTA HOUSING FINANCE
AGENCYIS 1994 MINNESOTA CITIES PARTICIPATION
PROGRAM.
WHEREAS, the Housing and Redevelopment Authority (the "Authority ")
in and for the City of Fridley, Minnesota, recognizes the value and
importance of providing opportunities for homeownership to first -
time buyers, and
WHEREAS, the Authority has determined there is a need for
affordable financing for first -time homebuyers.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Housing and Redevelopment Authority in and for the City of Fridley,
Minnesota, as follows:
1. That staff is authorized to submit an application for
the 1994 Minnesota Cities Participation (the "Program ").
2. The Chairperson and Executive Director are authorized to
enter into all agreements required by the Minnesota Housing
Finance Agency for the operation of the Program.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY, MINNESOTA THIS DAY OF ,
1994.
LAWRENCE R. COMMERS - CHAIRPERSON
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
It's time for your dreams to become reality.
We can help you buy your first home right
here in town.
Our low-interest loans mean purchasing
a home won't break your budget This is a
mortgage program to help local people just like
you purchase their first home.
Below market interest rates and 30 -year
mortgages are now available to qualified
first -time home buyers.
Loan requirements are simple.
To apply, you just need to answer
"Yes"
to the following:
=`.4 ,
YES
• Are you a first-time home buyer"?
❑
• Have you maintained good credit?
❑
• Do you meet income requirements
listed in the insert?
❑
• Do you have a signed purchase
agreement?
❑
• Will the home be your principal
residence within 60 days of
mortgage closing?
❑
• Can you provide federal income tax
returns for the past three years?
❑
2.3
Wide variety of homes qualify.
Many types of homes are acceptable for a
mortgage under our program. Check the insert
for home purchase price limits and other
property guidelines. All homes must be totally
completed, in good repair, and meet usual
mortgage underwriting requirements.
Straightforward mortgages.
Mortgages under the program are
straightforward. They are locally administered
exclusively for this community's citizens:
• Your mortgage will be a fixed - monthly
payment, 30 -year, FHA, VA, FmHA,
conventional, or uninsured conventional loan.
• You apply for the loan at a local participating
lender.
• You pay normal closing costs, mortgage
insurance premiums, and fees.
• Minimum downpayment ranges from zero
percent to five percent of the purchase price,
depending on the type of mortgage loan.
• Loans have limited assumability.
• Entry cost assistance can provide up to $2,500
toward required downpayment and closing
costs, and monthly payment assistance of up
to $120 per month is available from the
Minnesota Housing Finance Agency (MHFA)
Homeownership Assistance Fund for eligible
borrowers (see insert).
From Dreams
To Reality.
The Fridley Mortgage Program is making
your first home affordable with our new low -
interest mortgage loans.
Fridley
mortgage guidelines.
Here's what you need to. know:
• It is designed to help first -time home
buyers.
• The interest rate is an attractive 6.25%
fth, with 11/2 discount points to be paid by the
seller (an annual percentage rate of
7.033 %)?
• You may select an existing home up to a
maximum purchase price of $85,000.
• Your maximum adjusted income2 may be no
more than $39,680 annually.
Additional help from the
Homeownership Assistance Fund.
To assist you further, extra help is avail-
able for entry cost (downpayment and dosing
costs) assistance and monthly payment
assistance through our Homeownership
Assistance Fund (HAF). Here's how it works-
1 ,
2.4
• HAF may be available to you if your
maximum adjusted household income2 does
not exceed $28,000 (entry cost assistance)
and $20000 (monthly payment assistance
and /or entry cost assistance).
• The amount of HAF assistance for which
you may be eligible depends upon your
adjusted income and the nature of your
home purchase.
• HAF is an interest -free, second mortgage
which you will repay on a graduated basis.
• You must be approved for a mortgage under
the Fridley Mortgage Program to be
eligible for HAF.
Loans available in town.
To obtain more information about this program,
contact Karen DuCharme at Marquette Bank
Brookdale, 5620 Brooklyn Boulevard, Brooklyn
Center, MN, 55429, (612) 561 -2530 or Loan
Officer at Metropolitan Federal Bank, 900 Long
Lake Road, New Brighton, MN 55112, (612)
631 -9656.
1Annual percentage rate combines the interest rate, loans fees and
other costs of obtaining the loan into a single feature. This shows
the true annual costs of borrowing so that it may be compared with
==ateprograms.
2Deteratine approximate 'adjusted" income by subtracting S1,000
for each household member who will live in the home from your
current gross annual household income.
This brochure is not an offer to enter into an interest rate or discount
point agreement, and such an offer may only be made in compliance
with the provisions contained in Minnesota Statute 47206, subd. 3
and 4 (1997supp).
Offered in cooperation with
0
MINNESOTA HOUSING FINANCE AGENCY
Q 9/M C.1
01992 Minnesota Housing Finance Agency
J
3.1
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 30, 1994
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: 1994 HOME Application
Anoka County has received approximately $350,000 in HOME funds for
1994. As in past years, the County has invited communities to
submit applications for funding. This year we plan to request
$70,000 for housing rehabilitation. The funds would be used to
provide grants to low income homeowners for basic code repairs.
Please note that the funds must be used in a target neighborhood
as opposed to city -wide. We have identified two target
neighborhoods for funding. If approved, the HRA would need to
provide a match of 25% or $17,500.
Recommendation
Staff recommends the HRA approve the resolution authorizing the
staff to submit an application to Anoka County for 1994 HOME funds.
GF:ls
M -94 -178
3.2
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE SUBMISSION OF AN
APPLICATION TO ANOKA COUNTY FOR 1994 HOME FUNDS.
WHEREAS, the Housing and Redevelopment Authority (the "Authority ")
in and for the City of Fridley, Minnesota, has determined it is
important to maintain and preserve the City's housing stock, and
WHEREAS, the Authority has established programs to address the need
for housing rehabilitation.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Housing and Redevelopment Authority in and for the City of Fridley,
Minnesota, as follows:
1. That staff is authorized to submit an application to
Anoka County for 1994 HOME funds.
2—The Chairperson and Executive Director are authorized to
enter into all agreements required by Anoka County to receive-
funding.
3.-That a match will be provided equal to 250 of the funds
requested up to a maximum of $17,500.
i
4. That any funds.received will be -used in accordance with the
application and only in the target areas identified on the
attached map.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY, MINNESOTA THIS DAY OF ,
1994.
LAWRENCE R. COMMERS - CHAIRPERSON
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
3.3
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TO: FRIDLEY KR.A
FROM: CITY OF FRIDLEY
RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES
MARCH 1994
ADMINISTRATIVE BILLING:
ADMINISTRATIVE PERSONAL SERVICES
ADMINISTRATIVE OVERHEAD
TOTAL ADMINISTRATIVE BILLING:
OPERATING EXPENSES:
POSTAGE BY PHONE
POSTAGE BY PHONE
U.S. WEST - TELEPHONE SERVICE
4.2
Account #'s for Account #'s for
HRA's Use City's Use
14,255.00 101 - 0000 - 341 -1200
275.00 101- 0000 - 336 -3000
460 -0000 -430 -4107 14.530.00
262- 0000 - 430 -4332
460- 0000 - 430 -4332
460- 0000 - 430 -4332
TOTAL OPERATING EXPENSES:
BENEFITS EXPENSES:
CITY OF FRIDLEY — MAR & APR HEALTH INS
CITY OF FRIDLEY — MAR DENTAL INS
CITY OF FRIDLEY — MAR LIFE INS
262 -0000 -219 -1003
262 -0000- 219 -1100
262 -0000- 219 -1200
TOTAL BENEFITS EXPENSES:
TOTAL EXPENDITURES — MARCH 1994
Fpe : \123DAT*HRA %TIFIBIWNa wki Details
16.72 236 - 0000 - 336 -3000
29.52 236- 0000 - 336 -3000
13.25 236- 0000 - 336 -3000
59.49
351.80 236 -0000- 219 -1003
20.53 236 -0000- 219 -1100
4.25 236 -0000- 219 -1200
376.58
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4.3
5.1
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 31, 1994 �,
TO: William Burns, Executive Director of HRA '141
FROM: Barbara Dacy, Community Development Director
SUBJECT: Continuation of Discussion of Southwest Quadrant
At the .March.l7, 1994, HRA meeting, the HRA requested additional
information in order to continue the discussion about the use of
the southwest quadrant. The information to be provided was:
1. Excerpts from the Maxfield study regarding housing demand
2. Any information regarding the condominium market
3. Summary of the City Council comments on March 21, 1994
4. Market values of the Suh property
1. Maxfield Study
Two pages from the Executive Summary of the Housing Study
completed in November 1991 is attached. "Providing housing
options for empty nesters and seniors in Fridley will
constitute a majority of the demand for housing during the
1990s." Maxfield _projects that Fridley can support 70 -90
units of senior rental housing immediately, with an additional
30 units annually for the next 3 -4 years, to total
approximately 200 units for the decade. The Westminster
project is aimed. at a very small segment of the senior
population, the very low income and older, elderly persons.
Maxfield recommends that different types of housing styles
should be developed to serve the older seniors and the younger
seniors.
Maxfield also notes that there is a demand for general
occupancy rental housing. This demand is based on the fact
that Springbrook Apartments filled rapidly in Fridley, and in
the market in general during the 1980s.
5.2
Continuation of Discussion of Southwest Quadrant
March 31, 1994
Page 2
Further, Maxfield states that new single family housing would
increase Fridley's competitiveness in the housing market. New
homes would probably be starter homes in the $80,00 - 110,000
range, rather than move up housing.
Finally, Maxfield notes that there are very few vacant sites
remaining in Fridley for either single family or multiple
family properties. It will be necessary to prioritize areas
that would be suitable for redevelopment.
2. Information Regarding Condominium Market
I contacted Mary Bujold at Maxfield Research Group to obtain
information about the condominium market. I explained to her
that we are considering condominiums like the Larry Laukka
development at Centennial Lakes. She stated that his project
worked because there probably was pent -up demand to live in
Edina and to purchase housing in an affordable range. She
stated that the condominium market in. general in the Twin
Cities' area has stabilized; and, in some cases, there has
been modest appreciation. The condominium* market has
stabilized even in severely deteriorated areas in Minneapolis.
Empty nesters and young single professionals are the primary
reasons for the stabilized market.
The condominium market is divided into two housing types. The
first type is the "conversion condominium ". These units were
originally apartment units and were then converted to
condominiums in the 1970s. The second condominium type is a
recently constructed unit, best exemplified by the Larry
Laukka product.
After reviewing with her our options for the southwest
quadrant, she indicated that if the HRA were to pursue the
condominium option, she would recommend the Larry Laukka
design since its appearance is more appealing and looks like
a cohesive development versus looking like an apartment
building. She also suggested that the units should contain
attractive amenities such as extra storage space or better
quality construction in order to pump up the value of the
homes. She said that people will pay more for a unit if they
perceive they are getting more for their money.
She would recommend, however, that if.a condominium option is
chosen, a specific market study should be conducted. She had
no qualms, however, in advising that the townhome option would
work and would fill rapidly.
5.3
Continuation of Discussion of Southwest Quadrant
March 31, 1994
Page 3
3. City Council Comments from March 21, 1994
Councilmember Nancy Jorgenson indicated that she preferred
residential with some retail blend. Councilmember Dennis
Schneider indicated that he preferred residential. Council -
member Ann Bolkcom indicated that she preferred owner- occupied
residential rather than additional rental housing. Council -
member Billings suggested that we investigate the possibility
of having a high rise residential project on the corner of
University and Mississippi with retail shops on the first
floor. He seemed to prefer residential on the remainder of
the site. Councilmember Billings indicated that he would be
willing to consider a two -story parking ramp in order to
support the additional density. He also supported a variety
of residential uses including owner- occupied townhouses and
empty -nest apartments. Mayor Nee indicated that he felt that
whatever we build should exhibit indicators of "class".
Staff is meeting with Frank Dunbar on April 13, 1994. Dunbar
has completed mixed use developments of the nature that Steve
Billings is envisioning.
4. Market Values of the Suh Property
Attached is the location map of the Suh property. The
property is divided into four PIN numbers. This is unusual
in that the shopping center property (Parcel No. 2 on the map)
just includes the shopping center building. The parking lot
for the shopping center is actually tied into the PIN number
for the Burger King property. In any case, the total 1993
market value of the Suh property is $557,100.
BD:ls
M -94 -182
5.4
Housine Demand
Fridley's potential to develop additional housing is severely constrained by a
lack of available land. Additional housing development will have to take
place through redevelopment of areas where the housing is obsolete, or where
the existing land use is inappropriate and would be better suited to housing.
.here are very few vacant sites remaining in Fridley appropriate for new resi-
dential development, either single - family or multifamily. It will be nec'es-
sary to target and prioritize areas that would-be suitable for redevelopment,
and appropria a or a er s ng e- family or multifamily projects. Priority
issues for new single- fami'Iy deve opment would inc u e areas predominantly
single - family with high amenity value and stable housing values. The city may
find it necessary to assist developers with land acquisition and removal of
substandard or deteriorating properties in order to make way for new construc-
tion. Areas that are blighted or where the cost to build new may be substan-
tially above existing neighborhood.values may have to be reviewed thoroughly
before redevelopment is implemented.
On multifamily sites, close proximity to public transportation and retail
goods and services are typically key issues. Density will likely be a key
issue and the city should consider development of different types of multifam-
ily housing other than just the traditional three story apartment building.
Owner- occupied housing such as townhomes and condominiums whose designs ad-
dress the needs of today's changing households can assist the city in attract -
ing a wide variety of residents at all income levels.
Household growth in Fridley is projected to be about 500 households over the
next twenty years. However, all of that growth is expected to occur from 1990
to 2000 and no growth from 2000 to 2010 as Fridley is expected to have de-
ve �oped�l� o`f -Yts -land on vacant and redevelopment sites by 2000. The entire
study area is projected to grow by 15,367 households over the next twenty
years. The city can attract new households through the creation of new hou-
sing that will meet their needs.
Providing housing options for em - nesters and seniors in Fridle will con -
stitu e a mailority of the de an- for_new.housin durin _the.1990's. Most of
t e remaining new housing will be multifamily housing to serve the general
occupancy market. At this time, there is no market rate senior housing in
Fridley. According to the 1990 Census, there were 1,114 senior households in
Fridley, 10 percent of the total household base. Most of the younger senior
households, 65 -74 years, own their housing. Also, compared to other developed
suburbs, more older seniors (75 years and over), own their housing.in Fridley.
Typically, as seniors age, they tend to rent in greater numbers. One of the
reasons that Fridley has a lower proportion of seniors renting is the lack of
rental units available to seniors with features that seniors desire. New
rental housing would provide options for both empty- nesters and seniors who no
longer want to remain in their single - family homes and would then, in turn,
free up these homes to be purchased by younger households. Fridley would be
able to retain its senior households while simultaneously adding new house-
holds.
We project that Fridley can support 70 to 90 units of senior rental housing
D
5.5
immediately with an additional 30 units annually over the next three to four
Years, totalling approximate y ZUU un is or the decade. We woulT a so
recommend that these units be—developed in projects that appeal to different
senior se �aents . both a higher - density, more service - intensive project (to
ap eal to r seniors) as we as i with few services, and more
modest rents (typically more appealing to younger seniors).
Three years ago the city seriously considered plac senior housing on a site
located just south of Mississippi Street, west of 91rok Street N.E. We feel
this site is appropriate for the development of high density, senior rental
housing and that the city should continue to pursue this project. Our conver-
sations with church pastors revealed that several area churches had recently
considered developing senior housing.
There will also be demand for new, general- occupancy rental units in Fridley.
Spring roo apartments, new m e - mar et yenta units, filled rapidly an
demonstrated the demand for new rental housing in Fridley. The ability of the
city to attract young renter households to its community and thereby achieve
household growth ro ections will de end on its obi t r to create available
sites or development. New rental housing, built on in-fill-sites in first -
tier suburbs during the 1980's, filled rapidly. This housing was conveniently
located close to employment and services and offered features not readily
available in other older, rental housing nearby. We project that, if Fridley y;
were to develop more general occupancy rental housin&, that.the_cty~wouTii ' be:-
able to attract a greater proportion of study area househo grow t than would
otherwise be the case.
New single - family housing would increase Fridley's competitiveness in the
mic ne marlkat An Un—u-T-cr-B-FFar buvers aaaltaonal options . Me lack -o-f-1—and
available for new housing indicates these new units will a eaeve-
opment areas or sites that have been cleared for new housing. Areas in the
c ty most appropriate for new s ng e- amily homes would be near the river in
Neighborhood #7 and in sub -areas of Neighborhood #4. Neighborhood #1 has
substantial amenities that support the development of single - family housing,
however we feel that additional housing in this neighborhood will take place
without impetus from the city. The existing value of homes in Fridley, in the
$70,000 to $90,000 range, dictates that new housing will have to be primarily
"starter homes" ($80,000 to $110,000) rather than "move -up" housing.
Overall Community Recommendations
Our conversations with persons living and working in Fridley revealed that
Fridley has a strong sense of community pride. Fridley residents appear to be
loyal to Fridley and the strong neighborhood crime watch program attests to
residents' concern that their neighborhood environments remain safe and
attractive.
The city has been successful in its efforts to organize residents regarding
safety issues. It is also important that residents feel that same concern
regarding maintenance and upkeep of their properties. Maintaining an attrac-
tive living environment will not only increase residents' pride in their com-
munity, but will also benefit everyone in the long -term by giving added value
0
#1
#2
#3
#4
1993 SUH PROPERTY MARKET VALUES
PARCEL
Vacant land behind car wash
Shopping center
Burger King
Car wash
5.6
MARKET VALUE
$113,800
$194,200
$201,900
$ 47,200
$557,100
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a
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 31, 1994
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Lake Pointe Marketing Update
Merrill Busch and I have been working on information to print on
the "insert" in the marketing brochure. The text, pictures, and
layout of the marketing brochure have been finalized and are now
being printed. The remaining task is to finish the inserts
regarding the specific information about the property including tax
data, location near recreational amenities, and demographic
information. Hopefully, by Thursday evening, we will have a
prototype of the brochure ready for HRA review. It is hoped that
we will have these brochures available at the commercial real
estate exhibition on April 13, 1994.
No action is needed by the HRA other than to review the brochure
and the materials.
BD:ls
M -94 -181
4 FRA
e
i
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: March 30, 1994
TO: William Burns, Executive Director of HRA P-
TO:
Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Community Rehabilitation Fund Program
Recently, we spoke with an official from the Minnesota Housing
Finance Agency (MHFA) concerning their decision not to fund the
City's application for the Community Rehabilitation Fund Program.
As you recall, last December, we requested $350,000 from MHFA to
fund a rental rehabilitation loan program in target neighborhoods.
In February, 1994, we learned that the MHFA had turned down our
application. MHFA received 51 proposals, totalling over $12
million; however, only $2 million was available. -Our proposal was
ranked quite high but was not considered for funding. Two reasons
were cited for the rejection:
1. The low amount of local funds that were provided
2. The high per unit cost
MHFA will probably have another funding cycle this year so we may
have another opportunity to.apply.
GF:ls
M -94 -174