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HRA 06/09/1994 - 6345y CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, JUNE 9, 1994, 7:30 P.M. --------------=------------------------------------------------ --------------------------------------------------------------- Location: Council Chambers Fridley Municipal Center CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: May 5, 1994 ACTION ITEMS: CONSIDER APPROVAL OF RESOLUTION AUTHORIZING EXECUTION OF A DEVELOPMENT CONTRACT SCOTT LUND. . . . . .1.1 -1.6 CONSIDER APPROVAL OF SETTLEMENT AGREEMENT WITH DON FITCH . . . . . . . .2.1 -2.5 CONSIDER AUTHORIZATION OF SEALCOAT & STRIPING IMPROVEMENTS TO FRIDLEY PLAZA OFFICE PARKING LOT. . . . .3.1 -3.6 CLAIMS AND EXPENSES . . . . . . . . . . . . . . . . . . .4.1 -4.3 INFORMATION ITEMS: UPDATE ON SCATTERED SITE ACQUISITION PROGRAM. . . . . . .5.1 INFORMATION ON ANOKA COUNTY SOLID WASTE MANAGEMENT FEES . . . . . . . . . . . . .6.1 -6.3 UPDATE ON FIRST TIME HOMEBUYER PROGRAM. . . . . . . . . .7.1 -7.2 CONSIDER AUTHORIZATION OF MHFA APPLICATION FOR HOUSING CONDITION STUDY . . . . . . . . .8.1 -8.6 UPDATE ON LAKE POINTE MARKETING PROGRAM . . . . . . . . .9.1 -9.5 OTHER BUSINESS• ADJOURNMENT _.r CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 5, 1994 CALL TO ORDER: Chairperson Commers called the May 5, 1994, Housing & Redevelop- ment Authority meeting to order at 7:30 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, Duane Prairie, John Meyer, Jim McFarland Members Absent: None Others Present: William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator Craig Ellestad, Accountant Jim Casserly, Consultant Scott Lund, Rite -Way Mobile Home Repair, Inc. APPROVAL OF APRIL 7 1994 HOUSING & REDEVELOPMENT AUTHORITY MINUTES• MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the April 7, 1994, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. CONSIDER PROCEDURES FOR INSPECTIONS FOR REHAB PROGRAMS: Mr. Fernelius stated City staff met with John Meyer to discuss the concerns Mr. Meyer expressed at the April HRA meeting regarding the inspection process, particularly concerning the loan program. After that meeting, staff developed a number of recommendations to address these concerns and is requesting approval of the following changes to the Housing Rehabilitation Program: 1. Pre - inspections will only be required for applicants to the Home Improvement Loan Program who require HRA gap financing. The inspections will be used to verify the improvements as opposed to a complete inspection of the property. 2. Pre - inspections will not be required for applicants to the Home Mortgage Assistance Program. United Mortgage will be conducting its own inspection as part of the mortgage application process. S HOUSING & REDEVELOPMENT AUTHORITY MEETING. MAY 5. 1994 - PAGE 2 3. No changes will be made to the Home Improvement Grant Program with regard to inspections. ACCAP will continue to do inspections and work write -ups for that program. Mr. Meyer stated this is a good summary of his meeting with staff, and he is comfortable with these changes. MOTION by Mr. Meyer, seconded by Mr. Prairie, to authorize staff to make the changes to the Housing Rehabilitation Program as outlined by staff. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. CONSIDER AMENDED TIF REQUEST BY SCOTT LUND• Ms. Dacy stated Scott Lund is proposing to build a new 13,000 square foot office /warehouse building on the north side of 73 1/2 Avenue just east of Highway 65. Before the last HRA meeting, the estimated construction cost was $230,000, so the 5% assistance amount equated to approximately $17,000. Since that time, Mr. Lund has received actual bid estimates, and the project cost totals $494,800. As Mr. Lund is going for SBA 504 financing, he wants to increase his request from 5% to 10 %. Ms. Dacy stated Jim Casserly has done his usual analysis in terms of the tax increment district. At this time, this is part of the Onan district. Staff is requesting that the HRA decide whether or not the 10% amount is appropriate. Staff and the petitioner need to work on the mechanics of the assistance, pay -as- you -go versus another method. At this time, staff is not prepared with a recommendation as to how the assistance should be given, but staff would like some direction from the HRA about the 10 %. Mr. Casserly stated he has looked at the three years' earnings forecast put together for the project, the executive summary of the SBA 504 loan application, the financial statements for the last two years, and the 'current revenue and expense analysis for the first two months of the current year. Rite -Way Mobile Home Repair, Inc., is a company that is growing at a steady pace. What appears to have limited its growth is the size of its current facility and the way that the company has had to subcontract out a lot of its work. By constructing this new facility, the company will be able to do a number of their own activities in the new facility and will have the opportunity to generate additional business and have a better profit picture. Mr. Casserly stated staff is still looking at what amount of assistance, if any, should be provided up front or what amount should be provided over time. It is Mr. Lund's feeling that without HRA assistance, the project could not proceed, certainly not to the size of the project that is being contemplated, and the 1s_ • �f 1 HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 5, 1994 - PAGE 3 amount requested certainly seems justified. In staff's estimation, it is just a question of how that amount should be provided. Mr. Commers asked if staff is asking the HRA to exceed the guide- lines the HRA has consistently used which is 50, and what is the basis for doing that? Ms. Dacy stated the recommendation has been 5% on the pay- as -you- go approach. On a loan, the HRA has done a loan amount from 5% to as high as 15 %. Mr. Commers asked if staff is looking at a mixed type of assistance; that is, a pay -as- you -go together with a loan. Ms. Dacy stated the requested amount is 10 %, but the HRA can mix and match any type of tool. In the past, with pay- as- youzgo, 5% has been the guideline. Mr. Prairie asked the number of employees. Mr. Lund stated he currently has nine full -time employees. During the summer months which is their peak season, he hires four to six part -time employees. With this new facility, he anticipates hiring four additional people, two would be full time mechanics just for their equipment. As they expand, there will be additional employees as needed. Within four years, he anticipates hiring an additional four employees. Mr. Commers stated that if the HRA cc the SBA 504 program contribute and developer? Mr. Casserly stated the developer's total project cost, the SBA provides is 400. ontributes 10 %, how much does what is the equity of the equity is about 10% of the 50 %, and the bank financing Mr. Commers stated that with the 90% financing and the HRA's 10 %, the developer is not really putting anything into the project. Mr. Lund stated he has already put $8,000 into the project to date. They are doing a first rate development. His partner and he personally will be putting a lot of money into the interior of the building as they are not financing all the interior improvements, nor did they include any equipment in their proposal for assistance from any of the entities other than SBA, solely for the purpose of trying to keep the monthly costs down. Mr. Meyer asked Mr. Lund to comment on the proposed mix of funds for the 10% HRA assistance, other than an outright pay -as- you -go loan. Mr. Lund stated he had asked Mr. Casserly if there might be an option for the HRA to contribute a 5% loan now and 5% pay- as -you- go, so that he is not strapped for cash flow. He and his partner R HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 5, 1994 - PAGE 4 have set up a partnership as required by SBA, and each of them has set aside $20,,000 to make sure they have sufficient funds to do the project correctly. Mr. Casserly stated they have probably not included all the project costs, including tenant improvements, machinery, moving expenses, etc., as they normally do in determining percentages. He believed the total cost of this project might be in excess of $550,000. Mr. Commers stated there seems to be a lot of information missing regarding this project. He stated he has never heard of including moving costs as part of the overall project cost. If so, that has never been discussed. Mr. Casserly stated they are talking about the HRA providing assistance that is greater than what the guidelines suggest. What is being suggested is not a loan, but that part of the assistance be provided up front and part be provided over time. The assistance over time is the traditional pay -as- you -go approach and the assistance up front is the traditional grant approach. Those two options can be mixed any way the HRA wants. THe other option is to provide a grant up front with a loan for part, a pay- as -you- go for part, and a loan for part; or they can mix any combination to get the project done. Mr. Meyer stated that it seems like Mr. Lund has done a very good job at trimming down a building to keep the costs down. It is somewhat ironic that he is potentially being penalized for staying within what he considers to be his means. Mr. Meyer stated he is in favor of 10% assistance in one form or another for Mr. Lund's project. He is not hung up on exceeding the HRA's previous guidelines. This sounds like a good project for a person who has been a member of the community for many years and a successful business owner. Mr. Burns stated that more time is needed to work out the exact form of assistance. If the HRA can give its consent to the 10% concept without knowing the exact form of assistance, that would be appreciated. Mr. Commers stated what should be explored is what exactly the developers are going to put into the project; and, to the extent they are contributing some equity, what that equity would do to the 5% up front payment and whether or not they can afford to carry a 5% loan to some extended terms. He did not necessarily see anything wrong with the 10 %, with 5% up front and 5% over some other terms; but right now the HRA does not have enough information to make that decision. Mr. Burns stated that the HRA was close to 7% on the McGlynn Bakeries project and was far in excess of 5% for Onan, so there already is a precedent for exceeding the 5% guideline for projects the HRA feels have a substantial benefit to the community. m e HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 5. 1994 - PAGE 5 Mr. Burns stated staff will work with Mr. Lund and try to move this along as quickly as possible. 3. CLAIMS AND EXPENSES: a. Check Register MOTION by Mr. Prairie, seconded by Ms. Schnabel, to approve the check register, checks 25095 -25104 (checks 25105 and 25106 were voided) and checks 25117 -25122 (checks 25107 -25112 were voided). UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. SOUTHWEST QUADRANT UPDATE: Ms. Dacy stated that since the last HRA meeting, staff has met with Frank Dunbar of Dunbar Development Corporation, Frederick Furland of Ted Glasrud Associates, Inc., and Harry Yaffee and Ken Belgarde of Belgarde Enterprises, Inc., to explore development opportunities on the southwest quadrant. Since these meetings, Glasrud Associates and Belgarde Enterprises have written letters stating that they are not interested in pursuing this type of site for development. Ms. Dacy stated that when staff reviewed this information with the City Council one week ago, the Council asked staff to go back to Winkels and LaNel Financial and explore the mixed use, multi -story structure and development, which was proposed by Winkels and Lanel Financial. Mr. Burns stated staff has relayed to Winkels and LaNel Financial some of the things the Council would like to see; namely, the project ought to have a little more value than what was originally projected. The Council is also attracted by the approach that would have some "under and over" type retail development where the retail is on the bottom floor and the residential is on the upper floors. Mr. Burns stated staff has asked the developer to address some of these concepts and come back with a conceptual plan to be presented to the Council on May 16, 1994. He has also asked Mr. Winkels and Mr. Casserly to get together to change the assumptions and then have Mr. Casserly work on the financial projections. At the request of the Council, he has asked Mr. Winkels not to phase the project. In the past, Mr. Winkels wanted to build in two phases. Mr. Burns stated this is a major project. There seems to be a greater community interest in this redevelopment project now than there has been in the past. 5. LAKE POINTE MARKETING UPDATE: HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 5, 1994 - PAGE 6 Ms. Dacy stated the Lake Pointe brochures were printed in April, and the kick -off of the marketing effort was to attend a booth at the Commercial Real Estate Exhibition in downtown Minneapolis. Twenty to thirty brochures were distributed. Information inserts will be printed on nice colored card stock to be inserted into the brochures. They have had a lot of good response to the appearance of the brochure and the photos. Ms. Dacy stated she just received the prototype for a sign from Merrill Busch. The sign will read: "Lake Pointe Outstanding Corporate Site Available" and will list the City Manager's telephone number. According to the City's Sign Ordinance, they are allowed a 50 square foot sign per street frontage so they potentially could have four signs. Mr. Busch has prepared a list of specifications. Ms. Dacy stated that Mr. Busch has recommended that Mr. Commers and Mayor Nee co- author a letter that will accompany the brochure to be mailed to brokers and developers to introduce the site to the real estate community. That should be done within 30 -45 days. They will start doing news releases and advertising in the Real Estate Journal and other business publications. The final step is to work on a list of Minnesota and metro area corporations and businesses for a direct mail. ADJOURNMENT: MOTION by Mr. Prairie, seconded by Ms. Schnabel, to adjourn the meeting. Upon a voice vote, all voting aye, Chairperson Commers declared the motion carried and the May 5, 1994, Housing and Redevelopment Authority meeting adjourned at 8:40.p.m. Respec tful1 s witted, 0 W -Gtr Lyn Saba Recording Secretary r _ e 1.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: June 3, 1994 TO: William Burns, Executive Director of HRA 00- FROM: Barbara Dacy, Community Development Director SUBJECT: Consider Approval of Resolution Authorizing Execution of the Development Contract with Rylund Properties Since the May 1994 meeting, Jim Casserly and I met with Scott Lund regarding the tax increment financing request for construction of a 13,000 square foot office /shop /warehouse facility. Requested from the HRA is $35,000 in tax increment assistance via the pay - as- you -go approach. This amount represents approximately 5.5% of the total project costs. In addition to the $494,800 to be financed from the SBA, we have verified that the owners will be providing an additional $86,375 in improvements to the property. Therefore, the total project cost is $581,175. Casserly has prepared a revised cash flow analysis which indicates that the $32,000 in pay -as- you -go assistance is distributed over an eight year term. -The proposed request is consistent with HRA tax increment financing. guidelines. Recommendation Staff recommends the HRA approve the attached resolution authorizing execution of the development contract with Rylund Properties. ( Rylund Properties is a general partnership consisting of Scott Lund and his partner, Dave Ryan.) BD:ls M -94 -299 f r � /.2 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. 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 FRIDLEY AND RYLUND PROPERTIES. 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 enter into a Contract For Private Redevelopment (the "Contract ") with Rylund Properties (the "Redeveloper "). Section 2. Findincis . 2.01. The Authority hereby finds that it has approved and adopted a development plan known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Plan ") pursuant to Minnesota Statutes, Section 469.001 et sec. 2.02. The Authority hereby finds that the Contract promotes the objectives as outlined in its Redevelopment Plan. Section 3. Authorization for Execution and Delivery. 3.01. The Chairman and the Executive Director (the "Officers ") of the Authority are hereby authorized to execute and deliver the Contract when the following condition is met: Substantial conformance of a Contract to the Contract presented to the Authority as of this date with such additions and modifications as the Officers may deem desirable or necessary as evidenced by the execution hereof. Adopted by the Board of Commissioners of the Authority this day of , 1994. Chairman ATTEST: y 1.3 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: .,'The Housing and Redevelopment Authority in and for the City of Fridley, Minnesota Attention: William Burns Barbara Dacy Rylund Properties Attention: Scott Lund FROM: Mary E. Molzahn James R. Casserly RE: Rylund Properties DATE: June 2, 1994 Enclosed please find the following: 1. A revised cash flow analysis for the proposed office /shop /warehouse facility; 2. A draft of the Contract for Redevelopment between the,..: Authority and Rylund Properties (the "Contract'.'); and 3. A draft resolution authorizing the execution of the Contract. The total of $32,000 under the "Present Value Analysis" columns located on far right of the cash flow represents the principal amount of a proposed revenue note from the Authority to the Redeveloper. The total of $49,426 listed under "Available For Developer" represents the total principal and interest payments which would be paid over an eight year term (sixteen semi annual payments). The difference between $49,426 and $32,000 represents interest at 8..00. Attached to the cash flow are the assumptions used in the analysis. The Revenue Note (the "Note "), included as Schedule D in the Contract, documents the tax increment assistance to be provided 1.4 by the Authority to the Redeveloper upon the issuance of the Certificate of Completion. The Payment Schedule, attached to the Note as Exhibit A, is identical to the "Available For Developer" column included on the cash flow analysis. The terms of this Contract are consistent with past Authority practices. The proposed resolution provides authorization for the Authority to execute the Contract. Please review the enclosed and call with any questions or comments. I � e CITY OF FRIDLEY, MINNESOTA 1.5 PROPOSED SCOTT LUND PROJECT ----------------------------------------------- 8.00% PV RATE ORIGINAL ESTIMATED CAPTURED ESTIMATED LESS: AVAILABLE - - - - -- AVAILABLE ---------------- PRESENT VALUE - - - - -- ANALYSIS TAX TAX TAX TAX ADMIN FOR FOR SEMI ANNUAL CUMULATIVE DATE CAPACITY CAPACITY CAPACITY INCREMENT FEES HRA DEVELOPER BALANCE BALANCE 6 / 1994 7,068 7,068 0 ----------------------------------------- 0 0 0 - - - - -- 0 ----------------- 0 - - - - -- 0 12 / 1994 7,068 7,068 0 0 0 0 0 0 0 6/ 1995 7,068 14,867 0 0 0 0 0 0 0 12 / 1995 7,068 14,867 0 0 0 0 0 0 6 / 1996 7,068 14,867 7,799 4,537 1,448 (0) 3,089 2,641 0 2,641 12 / 1996 7,068 14,867 7,799 4,537 1,448 (0) 3,089 2,539 5,180 6 / 1997 7,068 14,867 7,799 4,537 1,448 (0) 3,089 2,441 7,621 12 / 1997 7,068 14,867 7,799 4,537 1,448 (0) 3,089 2,347 9,968 6 / 1998 7,068 14,867 7,799 4,537 1,448 (0) 3,089 21257 12,226 12 / 1998 7,068 14,867 7,799 4,537 1,448 (0) 3,089 2,170 14,396 6 / 1999 7,068 14,867 7,799 4,537 1,448 (0) 3,089 2,087 16,483 12 / 1999 7,068 14,867 7,799 4,537 1,448 (0) 3,089 2,007 18,490 6 / 2000 7,068 14,867 7,799 4,537 1,448 (0) 3,089 1,929 20,419 12 / 2000 7,068 14,867 7,799 4,537 1,448 (0) 3,089 1,855 22,274 6 / 2001 7,068 14,867 7,799 4,537 1,448 (0) 3,089 1,784 24,058 12 / 2001 7,068 14,867 7,799 4,537 1,448 (0) 3,089 1,715 25,773 6 / 2002 7,068 14,867 7,799 4,537 1,448 (0) 3,089 1,649 27,423 12 / 2002 7,068 14,867 7,799 4,537 1,448 (0) 3,089 1,586 29,009 6 / 2003 7,068 14,867 7,799 4,537 1,448 (0) 3,089 1.525 30,533 12 / 2003 7,068 14,867 7,799 ------------------------------------------------ 4,537 1,448 (0) 3,089 1,466 32,000 72,593 23,167 (0) - - - - -- 49,426 ----------------- 32,000 - - - - -- 32,000 LUND2 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES O1- Jun -94 ORIGINAL MARKET VALUE 12- 30 -24 -24 -0011 12- 30 -24 -24 -0012 12- 30 -24 -24 -0013 12- 30 -24 -24 -0044 ORIGINAL TAX CAPACITY 12- 30 -24 -24 -0011 12- 30 -24 -24 -0012 12- 30 -24 -24 -0013 12- 30 -24 -24 -0044 ESTIMATED CONSTRUCTION COSTS ESTIMATED MARKET VALUE - BLDG ESTIMATED MARKET VALUE - LAND 12- 30 -24 -24 -0011 12- 30 -24 -24 -0012 12- 30 -24 -24 -0013 12- 30 -24 -24 -0044 ESTIMATED MARKET VALUE - PROJECT ESTIMATED TAX CAPACITY CONSTRUCTION VALUATION TAXES PAYABLE ESTIMATED 1994 TAX RATE ESTIMATED TAXES ESTIMATED TAXES /SQUARE FOOT ADMIN FEES INFLATION PV RATE CITY OF FRIDLEY, MINNESOTA 3.00% 6/1994 12,300 6,200 9,100 112,100 622 314 460 5,672 70.00% 12,300 6,200 9,100 75,000 4.60% 1994 1995 1996 1.163434 13,000 SF 31.914% 0.007 8.007 139,700 7,068 364,840 255,388 102,600 357,988 14,867 17,297 1.33 v - 1.6 LUND2 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES 01- Jun -94 f 2.1 �% Community Development Department L�1 HOUSING AND REDEVELOPMENT .AUTHORITY City of Fridley DATE: June 3, 1994 }�y TO: William Burns, Executive Director of HRA 44 FROM: Barbara Dacy, Community Development Director SUBJECT: Consider Approval of Settlement Agreement with Dairy Queen The City Attorney has negotiated a settlement agreement consistent with the HRA's direction at the May 1994 meeting. The HRA has previously paid Fitch $165,000 which was the Commissioner's Award - for the condemnation of the Dairy Queen property. The additional - amount to be paid is $42,500 for a total settlement amount of $207,500. The City Attorney recommends that the HRA approve the attached agreement and authorize the Chairperson to execute the agreement. The Attorney's Office will then prepare a Stipulation of Dismissal to be filed with the District Court. Recommendation Staff recommends the HRA approve the attached settlement agreement, authorize the Chairperson to sign the settlement agreement, and to authorize staff to prepare a check in the amount of $42,500. . BD:ls M -94 -294 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 F. HURLEY VIRGIL C. HERRICK HERMAN L. TALLE May 26, 1994 Bf"l 0 103 Barna, Guzy & Steffen, Ltd. ATTORNEYS AT LAW 400 Northtown Financial Plaza 200 Coon Rapids Boulevard Minneapolis, MN 55433 (612) 780 -8500 FAX (612) 780 -1777 Writer's Direct Line: (612) 783 -5124 William W. Burns City Manager City of Fridley Fridley Municipal Center 6431 University Avenue Northeast Fridley, MN 55432 RE: Housing & Redevelopment Authority of the City of Fridley /Fitch Dear Bill: 71914 • PAMELA M. HARI9'2 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 ELIZABETH A. SCHADNG WILLIAM F. HUEFNER ROBERT C. HYNES 1935 -1993 Enclosed are three copies of the Settlement Agreement between the Fitch's and the HRA. They have been executed by Ernest L. Fitch, Muriel K. Fitch and Donald A. Fitch. I request that you place this matter on the Agenda for the next HRA Meeting and ask for approval of the settlement. The settlement amount is $207,500.00. The HRA has previously paid $165,000.00, leaving a balance of $42,500.00. Upon approval by the HRA, please have a check issued in that amourA. payable to Ernest L. Fitch, Muriel K. Fitch, Donald A. Fitch and Bradley J. Martinson, Attorney. Keep one copy of the executed Settlement Agreement for the HRA's file and return the other two after they have been executed by the HRA, together with the above mentioned check, to me. I will then prepare a Stipulation of Dismissal to be filed with the District Court. An Equal Opportunitc Employer y M William W. Burns May 26, 1994 Page Two If you have any questions, please call me. Sincerely, Virgil C. Herrick VCH : j - h Enclosures 2.3 2.4 ETTLEMWNT ACRE TH?S AGREEMENT made this �7 day of 1994, between Ernest L. Fitch, Muriel K. Fitch and Dona d A. Fitch ( "hereinafter "Fitches") and Housing and Redevelopment A,:tho rity of the City of Fridley, Minnesota, a public body, corporate and politic, under the laws of Minnesota ("HRA "). Fitches were the owners of real property located at 298 Mississippi street Northeast, Fridley, Minnesota. Fitches operated a Dairy Queen franchise on the property. HRA has exercised its power of eminent domain and acquired title to the property owned by Fitches described above. Pursuant to Minnesota Statute 117.042, HRA deposited with the District Court Administrator the sum of $125,000 representing its approved appraisal of value. The Court appointed commissioners awarded Fitches $165,000 in damages for the taking and Fitches have appealed the award to the District Court. The parties hereto desire to settle all of their claims against the other. NOW, THEREFORE to effectuate said settlement, the parties agree as follows: 1. HRA shall immediately upon the execution of this agreement _ pay to Fitches the sum of $82,500. 2. Fitches shall dismiss their appeal. 3. Upon receipt of payment from HRA, Fitches release HRA from any and all claims for compensation, relocation, going concern, real estate value, fixture value, interest or any other entitlement to compensation which would, except for this Release have existed and also releases HRA from any and all claims associated with the acquisition of the real. estate. 4.. HRA also releases Fitches from any and all claims it may have had as a result of Fitches' ownership of the property or other claims assertable in the condemnation proceeding except any claims arising out of Fitches' occupancy of the property under the terms of the Lease referred to in paragraph 5. 5. The parties have heretofore entered into an Agreement to Lease dated July 25, 1991. HRA agrees that Fitches may continue to occupy the property until such time as Fitches' alternate location;;:. is ready for occupancy. All terms and conditions of the Lease shall remain in full force and. eff ect until terminated by either party in r- f L " ,e 2.5 accordance with the provisions thereof. Upon termination of the Lease, Fitches shall be entitled to remove all items of personal property identified in the lease as well as the security system in the building. 6. Upon execution of this release the parties shall execute and file a stipulation of dismissal with prejudice. Dated this —q_ day of J� 1994, �d Ernest L. Fitch 0990D/051194 Muriel K. Fitch Housing and Redevelopment Authority of the city of Fridley By; Its a° 0 3.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley ]DATE: June 3, 1994 y� TO: William Burns, Executive Director of HRA Arn FRO14: Barbara Dacy, Cc mminity Development Director SUBJEM: Consider Request for Sealcoating and Restriping of the Fridley Plaza Office Parking Iot The management company for the Fridley Plaza Office building has notified us that the Columbia Park Medical Group is going to move and expand the physical therapy center from the Clinic to the Fridley Plaza Office building. They will be moving sometime between August 1 and September 1, 1994. They have requested that the HRA, consistent with the lease agreement, sealcoat and restripe the parking lot. No maintenance ,activity has occurred on the parking lot since it was originally constructed in the early 1980s. It is estimated that the sealcoating and striping work will cost approximately $2,500 - 3,000. The sealcoating and striping will be ccupleted by the contractors that were hired by the City of Fridley through the annual sealcoating bid process; therefore, this cost is the most reasonable that is available to the HRA. The Clinic has also requested permission to install a canopy over the door for the former cafe entrance into the building (southwest corner). I have advised the management owner that it is acceptable as.lcmg as the canopy is consistent with other canopies on the building (over the pharmacy entrance). The management many has also requested the City to construct handicap sidewalk ramps along Fourmies Avenue. The Public Works Department will be processing this request. This is not a cost for the HRA. The management coppany has also requested an upgrade of the sign located at the southwest corner of the building. This sign was constructed as part of the original redevelopment project. I am still researching whether this was an BRA or a city expense, but it is in need of repair. The office owners requested that the "physical therapy entrance" be identified on the sign. I have advised them that since it is a municipal sign intended for general directional purposes, we would not want to place language on the sign which would date it or require updating if a new tenant was to be located in the building. RecomT endation Staff recommends that the HRA authorize staff to work with the City of Fridley Public Works Department to complete sealcoating and restriping of the parking lot on the east side of the Fridley Plaza Office building. BD:ls 3.2 May 19, 1994 FRAUENSHUH MANAGEMENT COMPANY Ms. Barbara Dacy Community Development Director City of Fridley Fridley Municipal Center 6431 University Ave. NE Fridley, MN 55432 Re: Fridley Office Plaza / Request for City Approval Ms. Dacy: Columbia Park Medical Group has executed a lease at the Fridley Office Plaza in order to move and expand their Physical Therapy Center from their clinic at 6341 University Ave. NE. Columbia Park Medical Group has requested a several improvements to the building and some of the surrounding areas. I have listed below the requested items that I believe we will need the city's assistance and/or approval on. 1. The tenant has requested that we install signage to dedicate eight (S) stalls reserved for Physical Therapy patients use only in the east parking lot immediately adjacent to the building. We will pay for the signage and. installation. We would also like to install "Tenant Parking Only" signage along the east border of the parking lot where we continue to have a problem with the residents of the apartments across the street. The east parking lot is in desperate need of re- striping. Was this promised by the HRA for this summer? 2. There is a pedestrian directional sign on the south side of the Fridley Office Plaza that appears to be part of a Fridley Plaza area standard sign package that identifies our building entrance. The sign has deteriorated and needs repair. The tenant has requested that the new Physical Therapy entrance on the west side of our building be identified on that sign. Is this sign city property? May we improve it? 3. The new Physical Therapy entrance will be where the former cafe's side entrance was. The tenant has requested that we install a canopy over this door identifying the clinic's entrance. 180 EAST FIFTH STREET, SUI FE 230 ■ SAINT PAUL, MN 55 101 ■ (o 12) 228 -94 5b 800 LASALLE AVENUE, SUITE 900 ■ MINNEAPOLIS, MN 55402 ■ ((- 12) 342 -2200 Fqual Opportunity Empl n� i 3.3 Ms. Barbara Dacy May 19, 1994 Page 2 4. The tenant has requested that several curb cuts be made in the sidewalks surrounding the south side and southwest side of the building. These curb cuts are intended to accommodate wheel chair and handicapped access to the building from the tenants clinic next door and from reserved parking space in the tenant's parking lot. I have attached a plan identifying where the requested improvements are to be made. This last item is very important to both the tenant and the building owner. We believe this should be important to the city as well. Is the city willing to participate in these improvements? Can these improvements be completed by the city and the expense be assessed on to the real estate taxes? Are there any other creative solutions to this issue? The expansion of Columbia Park Clinic's Physical Therapy Center into the Fridley Office Plaza represents a significant benefit to the building as well as the City of Fridley. At over 4,000 square feet, the Physical Therapy Center will accommodate a substantial number of patients and will draw all parts of the Twin Cities. I believe all of these improvements are reasonable and are in the best interests of all of the parties involved. I would appreciate your direction in obtaining the appropriate city approval and assistance. If you have any questions about any of the items mentioned above, please feel free to contact me at your convenience at 342 -2200. Thank you for your time and cooperation. Sincerely, FRAUENSHUH MANAGEMENT COMPANY ;W/11� Matthew L. Karl attachment cc: Dr. Spencer Johnson, Columbia Park Properties, Inc. John Mohr, Columbia Park Medical Group Vi Ruff, Columbia Park Medical Group GADATA\I I65\MLK \CITY. l exercise this option only by delivering written notice of its option to purchase by certified mail or by hand delivering to the HRA not more than twelve months nor less than six months prior to September 20, 2081. In the event the HRA and Redeveloper cannot come to an agreement as to the fair market value of the Option Parcel, within thirty days after the Notice of Option to Purchase has been delivered as provided herein, then in such event, the fair market value of the Option Parcel shall be determined in the following manner: Both the HRA and the Redeveloper shall each select an MAI certified appraiser and they shall each mutually agree upon a third MAI certified appraiser. The average of the three (3) appraisals shall then be the fair market value. Both the HRA and the Redeveloper will pay for the cost of the appraiser which they appoint and shall share equally in the fees incurred for the third appraiser. 6. Maintenance of the Leasehold Property. (a) snow Removal. Redeveloper shall be obligated to provide the snow removal, at its sole cost and expense, of the Option Parcel, which property is included-in the Leasehold Property and shown as the cross - hatched parcel on Exhibit D- hereto. Nothing herein provided shall obligate Redeveloper to do any snow removal on any remaining portion of the Leasehold Property. All snow removal on sidewalks connecting the Option Parcel and Redeveloper's property shall be completed by Redeveloper at its sole cost and expense. Redeveloper shall be obligated to push all snow accumulations from the option Parcel to an area of the Option Parcel as indicated on Exhibit E hereto. Within four working days after placing said snow in the agreed -upon area of the Option Parcel described above, the HRA agrees to remove the snow at their sole cost and expense if the. snowfall event is less than nine inches. If a snow event occurs greater than nine inches, the HRA shall remove the snow at their sole cost and expense within ten working days of said snowfall. The amount of the snowfall shall be verified by the City of Fridley Public Works Department. (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. (c) Maintenance, seal Parcel Leasehold Property. striping and resurfacing of undertaken and completed by expense. All striping, sea Option Parcel shall be done T 3.4 coating and Striping the option All maintenance, seal coating, ;;� the Option Parcel shall be the HRA at its sole cost and I 1 coating or resurfacing,of the on an as needed basis. The -3- t /j. 3.5 Redeveloper shall contact the HRA and notify the HRA of its Ij request for any such maintenance, seal coating and striping II \J,- of the Option Parcel. The HRA and Redeveloper agree that the Option Parcel shall be seal coated and striped at least Yi once every four years. (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. (g) operation and Maintenance of Irrigation System. The HRA shall be responsible for, at its sole cost and expense, the operation and maintenance of the irrigation system now in place which services the Redeveloper's Property. 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- . I E H BIT D coos�rvcYficn ✓V. \3� - c- i ' I G z LJ pay ° a a� Z. N Tj o: I J it i In L #_ - - 14 3� �-- ' b G I /� /eX. cdgc I 41O I Fridley Plaza Office Bldg. 6601 University Ave. N.E. yw 3 —ST —Brick l':► N r, ,a ' I y'' 11.385.4 S.F. " I V, yr � o �JfJB9. SB.'3G� ".lJ. �-' - - :1 �_ - - - -= aP�•�F Fourmies Ave. 3.6 ' 4.1 a- H C O.0 OP O O + Z + g O M 000000}} O N O<0000,M9MM M MOM NOPOO1tOM01t0 M OO O �Q P PU1NC IN Mr.-WM CD a.— OMP.t ON .-- ui 1 1 •O N ��A1 0000�t U1 N•Oti ti•ON•O �O UI U\•O 1�U1N • -UlO a- �•GhPNO Ln 10 �•- 0• -P —U1P Mr NM M0•inM in Q 1 1 M 0 1' P O N •O cm ,;c,; •O N .t P I I + 1 I + I 1 I 1 1 I I 1 1 1 ;1 I 1 1 1 + 1 I + r 1 + I F I I a! U W 1 + O ¢ J W J i Z 6 F Z U 2 J 940 $-- r O J Z O 00 N ca co W O HHW U H J! -0007 99 (A 1 1 U N U U U) Q U •-I •-I Z W >:; W 1 1 d N 7 O D>>— £ ox C7 pS> 0OK 1- 0 d aC p CAC aCJ O WpH 1 + W F O C Z y J� Ul Z W W W_ W W W J' S fA 1. 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CC d3 01-1- ON .a:7«+UW aC N J; I Q d0 LL W!-W QZOOYQ JYI --NN ) -- W a W O O Q w wW d' W Z • W 2 ss(� aa x -j W£ Z W W J E¢ W J /-x •-• d U) S S W 1� W 1 p 1 • O W Q W ¢ Y U pZt Z Z p =w D NF Y • J U U N Ul p I �aCxO�•- r21, -IU66Q Z_ZeUKN aC OC to I.- W 1 W 1 d'OCp¢OUZ d'•-Z Q aC Q¢ae U »•-W P aC 1 > + «C7 ¢•- Z NQ LLLL£ 7-+QQ ££U• I-•COU U.LL £ZCO COLL W3 I p 1 a 1 of ¢ r r \ C7 M J Z + O N Ln U) 1 \ N 1 •OM� 1 £ 1 t7 x + to )- 1 1 PP PPP PPPP OP P OP Ok 0% Z Z Z PPP P OP P 0 P0% 0PP aC W I Y W • \ \ \ \ \ \ \ \ \ \ \ 111. \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4ZJ r UI- r .pe- ���• -.-- M1� OOOOMMMMNMMMMMMMMMMM d13 I WQ I 0— -- a- .-- .-- .- -a-. -N N N NN N N N O 00000000000 W O w 1 x M 1 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ adW • U ; InU1NU1InM1nU1InmtoMMmM1n1n •o•o•o.o•o-0•O�o.o•O•O•o TO: FRIDLEY H.R.A FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES MAY 1994 >< <IVIAY ::194:::::: > >s >> Account #'s for HRA's Use ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES Includes 2,743 for 93 ADMINISTRATIVE OVERHEAD First 5 months of 94 COMPUTER OVERHEAD First 5 months of 94 & includes 2,333 for 93 (For Micro & Mimi computers) TOTAL ADMINISTRATIVE BILLING: 460- 0000 -430 -4107 OPERATING EXPENSES: POSTAGE BY PHONE 262- 0000 - 430 -4332 POSTAGE BY PHONE 460- 0000 - 430 -4332 U.S. WEST — TELEPHONE SERVICE 460 - 0000 - 430 -4332 TRANSPORTATION — PARKING 460 - 0000 - 430 -4333 TOTAL OPERATING EXPENSES: BENEFITS EXPENSES: CITY OF FRIDLEY — MAY & JUNE HEALTH INS 262 -0000- 219 -1002 CITY OF FRIDLEY — MAY & JUNE DENTAL INS 262 -0000- 219 -1100 CITY OF FRIDLEY — MAY & JUNE LIFE INS 262 -0000- 219 -1200 TOTAL BENEFITS EXPENSES: TOTAL EXPENDITURES — MAY 1994 File: \123DATA\HRA\T1F18lLLING.wk1 Details � 3 4.2 Account #'s for City's Use 17,274.00 101 - 0000 - 341 -1200 1,299.00 101 - 0000 - 336 -3000 3,308.00 101 - 0000 -336 -3000 21.881.00 30.91 236-0000-336-3000 25.60 236 - 0000 - 336 -3000 11.99 236- 0000 - 336 -3000 0.75 236- 0000 - 336 -3000 69.25 351.80 236 -0000- 219 -1002 41.06 236 -0000- 219 -1100 8.50 236 -0000- 219 -1200 401.36 - I LA P � M O W O K a O,ca W d 2 � C7 F Z d' � ce Z W U Q t 6.- U W � O d c W cn di- N_ W (9 U W W OC d' W o at a ut D U � edi a Y W. Q z � U N m r U W W � J � x W t N � ¢ U F w Z W � 7 m U 7 2 2 � W � f � 0 t O � M J t M W � U w W LM F- W ¢ tY in at 2 i of 4 t � \ MOE O M- t W Z \ .- N t U 1OM� t W f � � t� x a wEri a o!� avat wo— � o oc ca NNNAY.) -NY W O Z Z Z Z J 2 2 W 2 OOu. N.LLOFLLU.. O U. O O O O W NQ 0 0 0 ZO Jm VOW U<- Xle U.Y � 1 170 a0 a0 t 00 07 1 07 OooOOOOOOOo 0 0 0 0 0 0 0 0 Co 0 0 0 0 0 0 0 0 0 0 0 0 0 H J N Mf� O O O N O 0 0 0 0 P P Ill ct7OOO,pOOOOO f.. It C VLn ((O��000NOOOOO OOO 10000000 M M M vW1O O0MMOOMO .\QM �N ON cm It N It P OooOOOOOOOo 0 0 0 0 0 0 0 0 Co 0 0 0 0 0 0 0 0 0 0 0 0 0 H J 0 0 0 0000000 ZWQ t t V1O OOOa�00000 f.. N OOO 1O NOONO UpOF O N It N N 't It N If M M M vW1O O0MMOOMO vSv � � � � 0 0 0 0 C0 0 0 0 0 0 O O O O C. O O O O O S S x 0�OOO.- r -00. -0 UUU O M O O O M M O O M O C N O- OO- -O Q Q Q co cam NNn �NNC (CD �r -1-VN J ET'7 IT J lT -It .t J 11J U P P P G P P P P P P en 2.C2 MMM M It to O O O N N N N N N \ \ \ \ \ \ \ \ \ \ \ 10 10 Ln vlto to in an N to to M M rn tll 1O 1O 1O 1O 1,—w tllN IA to Vl N t/1 to to NN P P P P P P P P P P P in W to in W U O n N O 1-- U G N z cc v A.S L] r � 0 5.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: June 2, 1994 TO: William Burns, Executive Director of HRA 44 FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Scattered Site Acquisition Program 1. Our goal for this year to acquire four properties under the Scattered Site Acquisition Program. To date, we have acquired two properties, and we are negotiating the purchase of a third property. In April, we sent letters out to five property owners; however, none of them were interested in selling. In May, we identified eight additional blighted properties which are good candidates for our program. We plan to send letters to these owners some time this month. If a majority of the owners wish to sell, we would need to seek HRA authori- zation for additional funds. 2. The Fire Department would like to salvage the garage at 8280 East River Road for use at their new training facility. They plan to move the garage prior to demolition which is scheduled for some time this summer. Unless otherwise directed, we will notify the Fire Department to remove the structure at their own expense. In the future, we will continue this practice if we find structures which can be salvaged for City use. GF:ls M -94 -291 r � 0 6.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: June 3, 1994 V TO: William Burns, Executive Director of HRA 44 4 FROM: Barbara Dacy, Community Development Director SUBJECT: Anoka County Solid Waste Management Fees Anoka County has initiated a solid waste abatement fee applicable to all properties in Anoka County. The fee was imposed as a result of reduced revenues from reduced tipping fees at the refuse derived fuel facility in Anoka County. The City of Fridley and the HRA must pay these fees in conjunction with real estate taxes for properties owned by the City and the HRA. The HRA has paid in conjunction with the first half of 1994 taxes, approximately $287.74, for the warehouse liquor store property, the Fast Lube property,. the Dairy Queen, and the Rice Plaza' Shopping Center property. The Finance Department indicates that the County will be calculating this fee in 1995 on a different formula. Apparently that formula will be based on land size. The City was also able to obtain a reduction in the fees through an appeal process. The above cost reflects that reduction. No action is needed by the HRA, but we will be including these costs as part of the usual budgeting process. BD:ls M -94 -295 `• J TO: WILUAM W. BURNS, CITY MANAGER FROM: RICHARD D. PRIBYI , FINANCE DIRECTOR SUBJECT: SOUD WASTE MANAGEMENT FEE DATE May 18, 1994 As you are aware, the County initiated a Solid Waste Abatement Fee due with the taxes payable in 1994. When the presentation was made to the Council a few months ago, there was no mention made of the fees that would be assessed to all tax exempt parcels. We have received tax statements from the County showing an amount due for solid waste management in excess of $8,000. The fee is based on the improved value of each parcel. The fee was based on a range of values as shown below: Improved Value Fee 0-24,999 $0 25,000 - 200,000 $79.97 201,000 - 500,000 $259.72 500,000 -1 mill $584.21 1 million + $2,047.71 After receiving the tax statements, we reviewed them to determine whether it was a waste generator. We contacted the Solid Waste Management Division and began working through each one of the properties to define its use. As part of the appeal process that evolved as we met, the County provided a reduction of the fee for each parcel in, an amount equal to 40 1%. They will also provide an additional 20% reduction if we pass a resolution affirming a policy that the City is committed to waste reduction activities. This resolution will be brought to Council shortly by the Community Development Department and must be passed by June 20 to be effective for the second half payment due October 15, 1994. The net result of the reductions that apply to 1994, decreases the amount that the City will pay to $2,100. When we reviewed the properties that we had received tax statements on, we discovered another time consuming problem; some of the School District's property is entitled to the City of Fridley and vis versa. We have since met with representatives of School District 14 to begin the process of untangling the title dilemmas with the property in and around the Commons Park Well fields and the schools athletic fields. We have also been told that for taxes payable in 1995, the fee will be based on an entirely different formula. The County is currently working on a formula that is based on land size. I would assume that the appeal reduction basis will also change. cc: Barb Dacy w � � 2 w m w 2 � co z n O Q � O 2 « � m O U-1 U w LL � b ƒ a O � « � m � 2 z O P E Es O � ) � � 7 � � § � . � § k � k � $ J r a 2 B ® wl LL § el 6s 6s ƒ oi / CV % § z q & # 3 6.3 � . � \\ � / . $� 2 I 2 . � k § § f @ @ § �. LL 3 R a��P�. � E2� K° ° -8 /x § 152 �.� e @ o 0 a �$i &\� .2 2 1 ; 2- 0 a k .9 c 0 E 0 0 8 7 2= 2 � � 4; =-= CA k/ CL e ~ 2 ° 0e0 2:;F- } Za N i 0 $ -:t 3 S \ \ + 6.3 Is Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: May 26, 1994 ,l A TO: William Burns, Executive Director of HRA R1`�& i i FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Minnesota Cities' Participation Program We are pleased to report that the City received an allocation of $787,000 for the 1994 Minnesota Cities' Participation Program. As you recall, in April we submitted an application to the Minnesota Housing Finance Agency for $1.5 million in mortgage revenue bond authority. Demand for this program was fairly strong state -wide with more than 60 cities requesting $79 million for only $38 million in available funding. On May 5, 1994, representatives from each city met to agree on a method for allocating the funds. All the cities had to accept. significant reductions in their funding requests. The amount Fridley received was the best scenario, given the various allocation options. Funds for the 1994 program should become available by the first of July 1994. To qualify for this program, a person: 1. Must be a first -time homebuyer. 2. Have an income of $39,680 or less. 3. Buy a home valued at no more than $92,500. 4. Be able to meet normal underwriting standards for a mortgage_ The interest rate is not known at this time; however, it should be somewhere between 1 - 1 1 /2o below market rate for mortgage loans.. We have added several new lenders in hopes of .a more successful program. A summary sheet of this program is attached. Please let us know if you have any questions. GF:ls M -94 -279 Fridley 1st Time Homebuyer Program Fact Sheet Introduction 7.2 This program is funded through the Minnesota Housing Finance Agency. The program is scheduled to begin in late June or early July of 1994. The Fridley HRA received an allocation of $787,100 for 1994. The funtCl's,. will be set aside for exclusive use within Fridley for 4 months. Interest Rate and Mortgage Types o Below - market rate mortgage loans (l to 1.5% below market rates). o FHA, VA and conventionally insured loans are eligible o No prepayment penalty o Seller may be required to pay points. Downpayment Requirements o Down payment requirements are "standard" for the type of financing provided. o For conventional loans where borrower is putting down less than 25 %, private mortgage insurance is required. Purchase Price Limit o $92,544 o Existing homes only, no new construction. Eligibility criteria To qualify, a borrower must meet the following guidelines: 1. Be a first -time homebuyer. That is someone who has not owned a home within the last 3 years. 2. Have a good credit history. 3. Household income cannot exceed $39,680 per year, less $1,000 resident. 4. Must occupy home within 60 days of closing. Information and Applications To find out more information or to apply contact one of the lenders listed below: Marquette Bank Brookdale............ 561 -2530 Metropolitan Federal ................ 638 -8749 FBS Mortgage ........................ 786 -0466 Norwest Mortgage .................... 424 -1400 Inland Mortgage ..................... 546 -1520 c Z 8.1 Community Development Department t HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: June 3, 1994 TO: William Burns, Executive Director of BRA FROM: Barbara Dacy, Ccmnm pity Development Director Grant Fernelius, Housing Coordinator SUBJECT: Capacity Building Grant Program The Minnesota Housing Finance Agency (mHFA) has announced the availability of $ 100,000 in grant funding from the Capacity Building Grant Program. The Legislature authorized the program to assist non- profits and local units of goverrment to expand their capacity to provide affordable housing and housing - related services. The maximum grant amount will be $10,000. Grants may be awarded for the following activities: 1. Studies and analyses of housing needs within the applicant's service area and development of plans and strategies to meet those needs. 2. Staff training 3. regal and professional services. 4. Other housing - related activities . We would like to apply for this program to update the "housing condition" information in the 1976 Comprehensive Housing Plan. The 1976 plan (copy of table of contents attached) inventoried structural conditions of the housing stock and analyzed the results on a census block and census tract basis. The grant funds would be used to hire an intern for three to four months to examine housing conditions and prepare the information for input into the GIS system. THe end result would allow us to compare housing conditions from 1976 and identify areas in need of rehabilitation, redevelopment, or acquisition /demolition. The intern would work closely with the Assessor's Office and GIS division to input housing condition data on a parcel by parcel basis. Although the Maxfield study examined the City's housing stock, less emphasis was placed on parcel- specific conditions. our study would not only ccuplete this objective, but also would establish a better data base for future planning activities. Unless otherwise directed, we will prepare an application to the MHFA for a $10,000 grant. Please let us know if you have any questions. GF:ls M -94 -296 A". "f % ro Ago r ir 14 44' - �Ir , ",A 7 14 w. . . . . . . . Vr45. M--W P i2M —A AV V N,. MEW fW7 - ,�z A �V Iw IRR qo, Z-4 7 M-1 C41 %A LVA.. . . . ...... -I--- NVI. 77, Awl. 8.3 CITY COUNCIL WILLIAM J. NEE, MAYOR CARROLL KUKOWSKI EO HAMERNIK W.R. "WALT" STARWALT EDWARD J. FITZPATRICK NASIM M. QURESHI CITY MANAGER PLANNING COMMISSION RICHARD HARRIS VIRGINIA WAHLBERG JAMES LANGENFELD ROBERT PETERSON HERMAN BERGMAN WILLIAM SCOTT PROJECT STAFF PROJECT DIRECTOR JERROLD BOARDMAN, CITY PLANNER PLAN DEVELOPMENT RAY LEEK ERNY MATTILA CARTOGRAPHY GRAPHICS ERNY MATTILA H.G. MATTSON RAY LEEK RAY LEEK ERNY MATTILA PRODUCTION JUEL MERCER DOROTHY EVENSON CONTENTS 8.4 a a Pages OPENING STATEMENT . . . . . . . . . . . . . . . . . . . . . . 1 GOALS AND OBJECTIVES . . . . . . . . . . . . . . . . . . . . 2 SURVEY AND ANALYSIS . . . . . . . . . . . . . . ... . . . . . 3 - 13 A. Population Growth Trends . . . . . . . . . . . . . . . . . . . 3 Characteristics . . . . . . . . . . . . . . . . . 4 - 5 B. Housing Supply and Characteristics . . . . . . . . . . . . 6 - 7 C. Fridley in the Context of the Twin Cities Metropolitan Area Population: Growth Trends and Characteristics 7 - 9 Housing Needs . . . . . . . . . . . . . . . . . . 9 - 10 D. Development Trends Population Trends . . . . . . . . . . . . . . . . 9 - 10 Delineation of Primary Target Neighborhoods in the City . . . . . . . . . . . . 11 E. Implications for Planning . . . . . . . . . . . . . . 12 - 13 POLICY DEVELOPMENT AND IMPLEMENTATION PLAN . . . . . . . . . 14 - 16 APPENDICES Appendix A Charts 1 - 6 Appendix B Map Series 1 Appendix C Map Series 2 Appendix D Map Series 3 Appendix E Housing Data and Information Appendix F Population Data and Information FOOTNOTES 8.4 a a I- Lril H OUSING Supply and Characteristics Housing is the largest single use of land in Fridley. Approximately 34% of the City's total land area is devoted to residential land uses and over 85% of this area is now fully developed. There are 9,418 dwelling units in the City. Available housing units in the City can be grouped into three categories: single family residences, multiple dwellings and mobile homes.? Detached single family dwellings account for a major portion of the resid- ential land use in Fridley: They comprise 65.1 %.(6,131) of all dwelling units in the City. There are 2,881 multiple dwelling units and 406 mobile homes making up the remainder (See Chart #4 for growth of housing supply in Fridley). Although Fridley is a relatively new community (it was incorporated in 1949) residential construction is already slowing because the City is almost fully developed. The fact that there are few areas left for new con- struction, coupled with the fact that 1,327 of the City's residential structures are over 20 years old, suggests that housing construction in the City may move more into rehabilitation. The median value range for owner occupied homes in the City is $25,000 - $34,999 (i.e. value of the land plus the value of the house). The City has 349 owner occupied single famil units in the low -to- moderate income range; i.e. total value less than $y20,000. Approximately 730 of the City's multiple dwelling units currently rent for $150 a month or less, and are thus in the low -to- moderate income range. The City Assessor's office keeps records of each parcel of land and struc- ture in the City. These records include information on the structure's age, any subsequent additions, structural and land values, number of rooms, etc. In addition, the Assessor's office makes a qualitative judgement of each residential structure's condition. These judgements fall into four categories: new, good, fair and poor.s These categories are defined as follows: (1) New: Any residential structure built after 1970, i.e. less than 5 years old, with no significant depreciation in value. 8.5 8.6 il (2) Good: A structure is rated good if there are no observable defects in the structure and there are only minor maintenance requirements, such as small plaster cracks and /or painting. The property is perfectly salable and is considered a desirable property to live in. (3) Fair: There is considerable deferred maintenance with damage to the structure items beginning to show. Window frames and sills may be deteriorating, floors and roofs may have some sag and there is considerable wear and tear on the walls and woodwork. (4) Poor: The structure is still habitable but probably should be removed. Considerable damage to structural items is found, heating and plumbing are unreliable,.and there are large plaster cracks. An examination of City records yields the information that 6,179 of the City's residential structures are in either new or good condition, 227 are in fair condition, and 11 are in poor condition. (See Map Series #2). FRIDLEY IN THE CONTEXT OF THE TWIN CITIES METROPOLITAN AREA More is involved in determining a community's housing needs than just examining it in isolation. Metropolitan trends in population growth and change, and housing development have implications for residential planning on the local level. Growth Trends and Characteristics The Twin Cities Metropolitan area can be divided into four regions: (1) the central cities, (2) inner ring suburbs (3) developing suburbs and (4) the remaining suburbs. The pattern of development in the Metropolitan area is highly dispersed due to the evolvement of two central cities in an area with few physical barriers. Maps in the "Population Profile of the Twin Cities Metropolitan Area" show the most evident direction of growth is outward.'3 The auto /freeway system, market preferences, and a wide- spread provision of services, have contributed to this out - movement and scattered development. 9.1 [� Community Development Department Q HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: June 3, 1994 p� TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Lake Pointe Marketing Program Staff has arranged for the installation of two "V" shaped signs to be installed on the Lake Pointe property. At the May 1994 HRA meeting, staff briefly reviewed the proposed specifications and appearance of the signs. Each "V" shaped sign consists of two 48 square foot panels. One sign will be located- along the Highway 65/I -694 interchange and the other sign will be located adjacent to the I -694 right -of -way approximately halfway between the Central Avenue exit and the University Avenue exit. A small survey stake with a yellow ribbon will be placed at the two locations where the signs are to be located so the HRA members can view the locations. The sign along I -694 will be approximately 21 feet in height above grade. The sign along Highway 65 will be approximately 10 feet in height. Both signs meet sign ordinance requirements. We will be contracting with DeMars Signs. The taller sign will cost $1,745 and the smaller sign will cost $1,545. The contractor has requested payment of 50% of the contract amount, with the remaining half to be paid after installation. Unless otherwise directed, staff will prepare a check in the amount of $1,245. Merrill Busch has also been working on a letter from the Mayor and the Chairperson of the HRA to be sent to brokers and developers in the metropolitan area. Attached is a copy of the proposed letter. The HRA may want to comment on the content. Busch is still working on the mailing list and the inserts for the brochure. BD:ls M -94 -298 -moo z- 3nN3nt/lbalN30 /99 AVMHOIH 31VIS a 9,2 L iw ►TIWS T vp VOW or- V 51(gA/ 9.3 It SPECIFICATIONS SIZE: .6' x 8'. -48 square feet MATERIALS: One -inch all- weather plywood, or equivalent (finished one side) Panels to be painted both sides, one coat undercoat, two coats finish enamel All open edges to be weathersealed Mounted on 4 x 4 posts, also finished in white enamel TYPEFACES: Vinyl lettering, permanently affixed See layout for styles (Stats of Lake Pointe logo are available for reproduction upon request) COLORS: a) Panels: White background, both sides b) Posts: White c) Lettering: Match PMS /Pantone colors as indicated by number on layout INSTAL- LATION: On -site by fabricator, locations to be provided by City of Fridley Signs to be adequately anchored against wind. Sign height to be determined by field check of elevations PERMITS: By fabricator QUANTITY: Four 9.4 I;_a i• FRIDLEY MUNICIPAL CENTER -643 1 l'NIVERSITY AVE. N.E. FRIDLEY. MN 55432 - (612)571-3450- FAN (hl_') 571 -12N- AVAILABLE... ONE OF THE LAST GREAT CORPORATE HEADQUARTERS LOCATIONS IN THE TWIN CITIES. We are delighted to introduce you to Lake Pointe, one of the great freeway development sites in the metro area and truly an exceptional setting for a corporate headquarters, office, or research facility. The Housing and Redevelopment Authority of the City of Fridley is now offering this extraordinary 33 -acre site for sale or development for single or multiple corporate or institutional users. We believe Lake Pointe represents a unique and timely development opportunity: • One of the most accessible and visible locations in the Twin Cities. • Totally improved, ready -to -build today, with all utilities, services, and roads completed and paid. • Located in a Tax Increment Financing (TIF) District. A complete package of information on this outstanding site is enclosed. Please call Barbara Dacy, Director of Community Development, at 612 -572- 3590 for specific information or to arrange a personal tour of the site. We welcome your inquiry. William Nee Larry Commers Mayor Chairperson City of Fridley Housing & Redevelopment Authority r. c a° 0 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: June 3, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Transfer of Title from HRA to the City for Fire-Station Property, 6381 Central Avenue The Finance Department has been researching the title records of all municipal and HRA properties as a result of the solid waste management fee imposed by Anoka County. As part of that review, it was determined that the Fire Station at 6381 Central Avenue was officially listed in the County records as "HUD Fridley of ". Upon further review, it, was determined that the HRA acquired the property in 1985. In order to correct the County records and to properly have the property under the correct ownership, it is recommended that a quit claim deed be signed by the Chairperson and the Executive Director to convey title of the property to the City of Fridley. The Attorney's Office has prepared the necessary documentation. Unless otherwise directed, staff will proceed to obtain the appropriate signatures to-convey the property to the City of Fridley. (We were able to find some HRA minutes regarding this transaction; however, since this occurred prior to my employment, I am still not sure as to why the HRA acquired the property in the first place.) BD:ls M -94 -293 a f ^h HOUSING & REDEVELOPMENT 'AUTHORITY'MEETING;'MAY 9, 1985 PAGE 3 to do-now is get some guesst mates of the costs and an allocation of those costs. He stated these cost were itemized on pages 3A and 3B of the agenda. Vice - Chairperson Pried%tis s from the-,HRA Director and ag 4. APPROVAL 'OF'FINAL'.ESTIMATE'NO :' 5. ed the HRA had received the concept of the costs d in principile with those costs. 'FOR`DEMOL'ITON'OF' STRUCTURE = 'MISSISSIPPI'STREET MOTION BY MS. SVENDSEN, SECONDED NO. 2 FOR DEMOLITION OF STRUCTURE UPON A VOICE VOTE, ALL VOTING AYE, MOTION CARRIED UNANIMOUSLY. FI14ANCIAL - STATEMtNT: MR. PRAIRIE, TO APPROVE THE FINAL ESTIMATE ' MISSISSIPPI ST. AND UNIVERSITY AVE. PRIEDITIS DECLARED THE Mr. Inman stated the HRA had received \ financial statement which required no action. Mr. Inman stated there was no check reg ster; however, the HRA had received a billing from the City in the amount o $6,994.70 for personal services from Jan. 1 - April 30, 1985. He would ask t gat the HRA approve that billing. MOTION BY MR. PRAIRIE, SECONDED BY MS. SV THE CITY OF FRIDLEY FOR PERSONAL SERVICES THE AMOUNT OF $6,994.70. UPON A VOICE VOTE, ALL VOTING AYE, MOTION CARRIED UNANIMOUSLY. _6. OTHER BUSINESS: , TO APPROVE THE BILLING FROM JAN. 1 - APRIL 30, 1985, IN PRIEDITIS DECLARED THE Mr. Qureshi stated that at the last meeting, he had discussed informally with the HRA members the possible purchase of a piece of property where an offer was made by the property owner to sell. It was the concensus of the HRA members at that time that it would be prudent to purchase the property because of the location and the reasonable cost. Mr. Qureshi stated they have finally executed the purchase agreement, and the HRA members had received a copy of the purchase agreement in their agenda packet. He stated the action needed by the HRA was to authorize the HRA staff to execute the purchase agreement and proceed with the purchase of the property. MOTION BY MS. SVENDSEN, SECONDED BY MR. PRAIRIE, TO EXECUTE THE PURCHASE AGREEMENT DATED APRIL 10, 1985, FOR THE PROPERTY LOCATED AT 6391 OLD CENTRAL AVENUE N. E. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON PRIEDITIS DECLARED THE MOTION CARRIED UNANIMOUSLY. 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 F. HURLEY VIRGIL C. HERRICK HERMAN L. TALLE May 2, 1994 B(13 � h Barna, Guzy & Steffen, Ltd. ATTORNEYS AT LAW 400 Northtown Financial Plaza 200 Coon Rapids Boulevard Minneapolis, MN 55433 (612) 780 -8500 FAX (612) 780 -1777 Writer's Direct Line: (612) 783 -5152 Mr. Richard D. Pribyl Finance Director City of Fridley 6431 University Avenue NE Fridley, MN 55432 RE: 6381 Central Avenue NE Dear Mr. Pribyl: PAMELA M. HARRIS CHARLES M.SEYKORA WILLIAM M. HANSEN DANIEL D. GANTER, JR. BEVERLY K. DODGE GREGG V. HERRICK JAMES D. HOEFT JOAN M. QUADS SCOTT M. LEPAK STEVEN L. MACKEY DAVID M. WEIGEL ELIZABETH A. SCHADING WILLIAM F. HUEFNER ROBERT C. HYNES 1935.1993 Pursuant to Virg Herrick's request, enclosed is a Quit Claim Deed from The Fridley Housing. and Redevelopment Authority to the City of Fridley for Lot 16, except the East 199 feet thereof, Block 2, Spring Valley. Please have this deed signed, notarized and return to me for filing. A self- addressed envelope is enclosed for your convenience. Very truly yours, Sandra L. Nelson Legal Assistant CC: Virgil Herrick, Esq. An Equal Opportunity Employer FRIDLIA MUNICIPAL ('F.N'1'I .'R • 64.1 L;N1VF RS1T)' AVF. \.F.. FRIUI.F). \1\ 55-132 • (61-1) 571 - 3450 • FAX (6121) 571 -121+7 April 25, 1994 Virgil Herrick Barna, Guzy & Steffen, Ltd. Northtown Financial Plaza 200 Coon Rapids Blvd, Suite 400 Coon Rapids, MN 55433 Dear Virgil: Attached you will find a property tax statement regarding the property that was acquired for the Fridley satellite fire station located at 6381 Central Avenue, Northeast. As you will notice, the taxpayer has been identified as HUD, Fridley of. I have a concern regarding the existing title and the way that HUD became part of the taxpayer description. Please review this acquisition to insure that there is no problem with the title and also to transfer the name of the taxpayer to the City of Fridley. If there is anything that we need to do, please advise me. Sincerely, CITY OF FRIDLEY i . Richard D. Pribyl Finance Director RDP /me Attachment STATEMENT OE PROPERTY TAXES PAYABLE IN 1 994 i1PJOKA.`'AN b-,,O S 323'5166 35.55$ TAXPAYER H U D FRIDLEY OF 6431 UNIVERSITY AVE NE FRIDLEY, MN 55432 SPRING VALLEY CITY OF FRIDLEY LOT 16 BLK 2 SPRING 1N 173400 OWNER H U D FRIDLEY OF 6431 UNIVERSITY AVE NE FRIDLEY, MN 55432 Property Class: New Improvements: Est. Market Value: Taxable Market Value: 1. Use this amount on Form M -1 PR to see if you're eligible for a property tax refund. File by August 15. If box is checked, you owe delinquent taxes and are not eligible ............................................... ............................... 2. Use this amount for the special property tax refund on schedule 1 ofForm M -1 PR ............................................................... ............................... YOUR P R O P E R T Y TAX And How it is Reduced By The State 3. Your property tax before reduction by state paid aids and credits ............. 4. Aid paid by the State of Minnesota to reduce your property tax ................. 5. Credits paid by the State of Minnesota to reduce your property tax :.......... A. Homestead and agricultural credit ..................... ............................... B. Agricultural preserve credit ................................. ............................... 6. Your property tax after reduction by state paid aids and credits :.............. WHERE YOUR PROPERTY TAX DOLLARS GO 7: County ............................................................................. ............................... 8. City or town ..................................................................... ............................... 9. School district ................................................................. ............................... 9A. Excess levy referenda tax ............................... ............................... 9B. Remaining school tax ...................................... ............................... 10. Special taxing districts .................................................... ............................... 1 OA. Metropolitan special taxing districts ............... ............................... 1 OB. Other special taxing districts ........................... ............................... 10C. Tax Increment .................................................. ............................... 1 OD. Fiscal Disparity Tax ......................................... ............................... 11. Non - school voter approved referenda levies ................ ............................... 12. Total property taxes before special assessments. ....................................... 13. Special assessments added to this tax bill ................... ............................... 13A. Solid waste management charge ................................ ............................... Please see informational enclosure. 14. Your total property tax, special assessments and charges ......... 15. Pay this amount no later than May 15, 1994 .... ................................ 16. Pay this amount no later than October 15, 1994 ............................ COMM -IND N/A 194500 194500 F-1 0.00 N/A N/A 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 N/A 0.00 M IM 0 we V DETACH HERE V v DETACH HERE V COMM -IND 194500 194500 0.00 -0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0C MI , 1O 79.97 79.97 39.95 39.9E ■t■ E10 ■t■ ME 0■ ■EN■■ ■■NE■ mmomm ■ENE■ ■■NE■ ■EN ■t ■■NE■ ■EWEIN ■ENE■ 4, C% Community Development Department D HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: June 3, 1994 Q,J TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Certificate of Completion for ECO Finishing ECO Finishing has completed its building in accordance with the development contract. The certificate of completion will be .signed by the HRA Chairperson next week. Victor Rosenblum will be sending me a letter to request the $125,000 loan. Unless otherwise directed, I will ask the Finance Director to prepare the check in accordance with the development agreement. Rosenblum will also be asking for reimbursement of the $2,500 tax increment assistance application fees. According to the fee policy adopted by the HRA on July 19, 1990, the "applicant shall be reimbursed its fees from bond proceeds or tax increments, but only if such reimbursement is statutorily authorized and financially feasible ". The loan made to Mr. Rosenblum is part of the project area and not a tax increment district. The HRA, however, is receiving about $25,000 in interest payments on.the loan. Unless otherwise directed, I will also process a check request for $2,500 to reimburse Rosenblum for the.application fees. BD:ls M -94 -297 Olz 04D D-D40 06. 0 3:94 11:12 FAX 612 645 5343 AL 177ff C"PE1anvE ®ter PLA77NG CO. COOP PLATING 0 2.;,() 0,-, aD TELEPHONE (612) 646 -0787 OFFICE FAX (612) 645 -5343 SHOP FAX (612) 645 -1512 271 SNELLING AVE. N. • ST. PAUL, MN 55104 A ONE -STOP SOURCE FOR ALL YOUR METAL FINISHING NEEDS CHROMIUM - NICKEL - CADMIUM - TIN - ZINC - ANODIZING • SILVER • BLACK OXIDE • COPPER - ELECTRO- POLISH GOLD • ELECTROLESS NICKEL HARDCOAT IRRIDITE • STRAIGHTLINE - POLISH PHOSPHATING - TIN -LEAD June 3, 1994 Attn: Barbara Dacy City of Fridley 6431 University Ave NE Fridley MN 55432 Dear Madam, I request payment of the 125,000.00 loan. and I will repay it according to the terms of the development contract.. I also request reimbursement application fees for tax increment assistance. Very truly yours, CO-OPERATIVE PLA G COMPANY T'�� Victor Rosenblum General NUnalger VZ :lb of the 2,500.00 I paid for