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HRA 08/11/1994 - 6346I v HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, AUGUST 11, 1994 7:30 P.M. PUBLIC COPY CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, AUGUST 11, 1994, 7:30 P.M. Location: Council Chambers Fridley Municipal Center CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: June 22, 1994 ACTION ITEMS: RESOLUTION TO AMEND HOME MORTGAGE ASSISTANCE . . . . . . 1 - 1D PROGRAM AUTHORIZE ACQUISITION OF 550 HUGO STREET N.E. . . . . . . 2 CONSIDER LOAN FOR MOORE LAKE APARTMENT PROJECT . . . . . 3 - 3E REVENUE AND EXPENSES . . . . . . . . . . . . . . . . . . 4 - 4D INFORMATION ITEMS: HOUSING PROGRAM UPDATE FOR JULY . . . . . . . . . . 5 - 5B LAKE POINTE MARKETING UPDATE . . . . . . . . . . . . . 6 - 6A UPDATE ON DAIRY QUEEN MOVE . . . . . . . . . . . . . . 7 UPDATE ON FRIDLEY TOWN SQUARE . . . . . . . . . . . . 8 CONSIDER ACQUISITION OF GUNDERSON PROPERTY . . . . . 9 - 9A UPDATE ON DEMOLITION OF SCATTERED -SITE . . . . . 10 - 10F PROPERTIES CONSIDER PARTICIPATION IN ACCAP ACQUISITION . . . . . . 11 - 11D AND REHABILITATION PROJECTS OTHER BUSINESS• ADJOURNMENT CITY OF FRIDLEY HOUSING-.& REDEVELOPMENT. AUTHORITY MEETING,' JUNE .22., 1994 CALL TO.ORDER• Chairperson Commers called. the June 22; 1994, Housing & Redevelopment Authority minute e to 'order at '7':35 p.m•. ' ROLL CALL: _Members Present:-. Larry Commers, Virginia Schnabel, Duane Prairie Members Absent: John Meyer,: Jim McFarland Others Present:. William. `Burns, :Egecutive •Director of Barbara Dacy, . Community Development Director - :.Craig.Ellestad;.Accountant•: Jim Casserly, Consultant APPROVAL OF MAY 5. 1994, HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the May 5, 1994, Housing &Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. CONSIDER APPROVAL OF RESOLUTION NO. HRA 5 - 1994 AUTHORIZING . EXECUTION OF DEVELOPMENT CONTRACT WITH SCOTT LUND: Mr. Casserly stated that at the May 5, 1994, meeting, the HRA discussed the amount of assistance, the type of loan, previous HRA guidelines, the fact that the developer had not included all his costs, and that the HRA really did not have enough information to make any decisions. Mr. Casserly stated that since the last meeting, Mr. Lund has identified all his project costs. He stated Ms. Dacy and he met with Mr. Lund and reviewed the project costs: Given the amount of the total project costs that are involved ($581,000) staff came within about 5 1/2% of doing a revenue note, so they have a revenue note of $32,000. That would be paid over a period of years. He had attached a copy of the payment schedule to his memo to the HRA dated June 2, 1994. The payment schedule shows a payment of $389 twice a year starting in 1996 and continuing through 2003. Mr. Casserly stated the development.agreement is very basic. It is the kind of arrangement where if the improvements are not built, there is no revenues being generated and the HRA is not at risk in any way. HOUSING & REDEVELOPMENT AUTHORITY MTG., JUNE 22, 1994 PAGE 2 Mr. 'Casserry :stated - the - project is a 'good one for -this area.• It. wilY1- generate additional -. sur_ p1us' iricroment :4hich •t_his area. needs: • The anioilnt -of .assistance is: very_ close- to what :the HRA has • done in* the.. past .. MOTION . by -Mr.: -. Prairie; . - seconded: - bpi" • --Xb. Schnab11-1-, ;to • approve Resolution ERA ..5 , 1994,. '!A .Resolution Aiithor zing:'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 Rylund Properties ". UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMEERS DECLARED -THE MOTION CARRIED. Mr. Lund expressed. his . appreciation.. to the. members of- -the HRA for - their.-help -with his project: 2. CONSIDER APPROVAL OF SETTLEMENT AGREEMENT WITH DON FITCH: Mr. Burns stated that as directed by the HRA at its May 5, 1994, meeting, the City Attorney has negotiated a•settlement agreement with Don Fitch. He stated this settlement* is actually a little less than that authorized by'the HRA. Ms. Dacy stated Mr. Fitch has purchased the former Marquette Bank building on-Osborne Road so he has found a new location. He has not yet provided the HRA with a notice to vacate. MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the settlement agreement with Don Fitch and authorize staff to prepare a check in the amount of $42,500. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. CONSIDER AUTHORIZATION OF SEALCOAT AND STRIPING IMPROVEMENTS TO FRIDLEY PLAZA OFFICE PARKING LOT: Ms. Dacy stated that when the HRA approved the revised lease, the HRA discussed what the HRA's responsibilities were originally when the first lease was initiated approximately ten years ago. The conclusion of that discussion was that since the HRA owns the parking lot, it is responsible for the ongoing maintenance of the parking lot. To her knowledge, the parking lot has not been maintained in any form as far as sealcoating or striping. MOTION by Mr. Prairie, seconded by Ms. Schnabel, to authorize staff to work with the City of Fridley Public Works Department to complete sealcoating and restriping the parking lot on the east side of the Fridley Plaza Office building. HOUSING & REDEVELOPMENT AUTHORITY MTG., JUNE 22, 1994 PAGE 3 UPON A VOICE VOTE, ALL-VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED_UNANiMOUSLY: A'. CLAIMS AND EXPENSES Mr. Ellestad stated the .checks to be- approved are '25123 -25153 and 25178= 25151. Again, tlie' gap . in check - numbers '.is- due to:':priaiter- problems - and = those. checks_ ha'i)'e been voided: He would also• -add' check _ #25192 which will be for $2,500 to Victor- Rosenblum to reimburse Mr. Rosenblum for an application fee. MOTION .by Ms. Schnabel, seconded by Mr. " Prairie, to approve the check register, checks 25123 -25153 and 25178- 25192. UPON: A - VOICE •• VOTE, • ALL VOTING AYE, - CHAIRPERSON - C-OMMERB DECLARED . THE MOTION 'CARRIED UNANIMOUSLY. 5. UPDATE ON SCATTERED SITE ACQUISITION: Ms. Dacy stated the HRA's goal for 1994 was to acquire four properties under the Scattered. Site Acquisition Program and, to date, two properties have been.acquired- -8280 East River Road and 187 Longfellow Street. Recently, staff successfully negotiated the purchase of a third property. This property is located at 6409 East River Road and is owned by Stuwart Anderson of San Diego, California. The purchase price would be $41,000 which is below the appraisal cost. Ms. Dacy stated staff would like the HRA to approve the purchase of 6409 East River Road for $41,000 and authorize the Executive Director to execute a purchase agreement with the seller. Mr. Commers stated this is another step in the acquisition process, and it appears staff has achieved a fairly favorable price. Ms. Dacy stated that as stated in Mr. Fernelius' memo dated June 2, 1994, staff plans to send letters to eight additional blighted properties which are good candidates for the Scattered Site Acquisition program. Ms. Schnabel stated that if a majority of these eight additional properties wish to sell, the HRA may need to seek additional funds to acquire the properties. Where is the HRA at as far as budgeted funds? Ms. Dacy stated the HRA allocated $200,000 in the 1994 budget for the acquisition of properties. They have acquired two properties for a total of $90,000, and the purchase price for the third property is $41,000 for a total cost of $131,000. There is a balance of approximately $69,000 for acquisition of a fourth property. She stated that if they get more interest from these HOUSING & REDEVELOPMENT AUTHORITY MTG.,_ JUNE _22, 1994 PIGE 4 eight property.owners, staff _will- come* back to. the HRA for -further direction.: _ - - Me...-. Dacy stated. that- .regarding 8280' .East River Road, the . Fire Department would 'like . to . "salvage . the garage and. move' it -to- - its ..training: site. hext,`to the-Public Works Garage.. Another option:.for_ the HRA - td - consider is that ...the.- "Fire .Department does do. a burn - exercise "for training, :-and' the. Fire- Department' would like to- ' burn the house at 8280. East River Road. - '-Burining the. house =would save the HRA demolition costs. If the HRA has any concerns about-this, they should let staff know..' Mr: Commers- -asked if there is-anything salvageable before the -building • is demolished or burned. Ms.-Dacy stated that'tjiereis nothing of sign. ..l for the HRA to -recc.0.p any amount of money. Ms. Schnabel stated she does not have any problem with the Fire Department burning the house, but it would be nice if there were some ways for the HRA to recoup some of their expenses. She stated it would also be nice if the Fire Department could clean up the charred wood. Ms. Schnabel asked if there is a basement under the house that would need to be filled in after the house is burned. Ms. Dacy stated she did not know if there is a basement.` If there is, the concrete will have to be removed and the hole filled in. MOTION by Ms. Schnabel, seconded by Mr. Prairie, to authorize the purchase of 6409 East River Road at the negotiated purchase price of $41,000. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMM" DECLARED THE MOTION CARRIED UNANIMOUSLY. 6. INFORMATION ON ANOKA COUNTY SOLID WASTE MANAGEMENT FEES: Ms. Dacy stated that this is for the HRA's information. Mr. Commers asked if the City pays real estate taxes for the municipal liquor store. Ms. Dacy stated the City does pay real estate taxes, and those monies are included in the HRA budget. Mr. Commers asked why taxes are paid for the municipal liquor store. Ms. Dacy stated the City must pay taxes on income- producing properties. HOUSING & REDEVELOPMENT AUTHORITY MTG., JUNE -22, 1994 * -PAGE 5 Mr..Commers stated the liquor store is a municipal enterprise;- and if. the• property is. owned'by the •HRA, 'it may. be that••the tax'on the : real estate. is a - tax that gets assessed 'against the tefiant; more in the nature of-a personal property.tax.rather_ than a real-estate tax. Mr. Casserly -stated -that 'if it is a revenue- produ6in4 enterprise; and the-.HRA leases it .out, there Is.. no question taxes would have to be paid. But, in the instance of the liquor store, the HRA is leasing to the City for city activity. This is something that has never been brought to the HRA's. attention before. Mr. 'Commers stated that -he would 'like sta -f f to investigate : (1) whether_ or not real estate., taxes- are _owed on. the :liquor store r -and (2) whether or not the HRA is responsible for real estate taxes on any property that - the HRA owns ' and. -leases -tb ' •a third party to operate and whether those taxes are levied as personal property taxes against the tenant. The HRA needs to know who is ultimately responsible for these taxes. 7. UPDATE ON FIRST -TIME HOMEBUYER PROGRAM: Ms. Dacy stated the City received an allocation of $787,000 for the 1994 Minnesota Cities' Participation Program. More than 60 cities requested $79 million for only $38 million available in mortgage revenue bond authority.. Ms. Dacy stated Mr. Fernelius has also been successful in obtaining three additional banks for a total of five banks handling mortgage loans. 8. CONSIDER AUTHORIZATION OF MHFA APPLICATION FOR HOUSING CONDITION STUDY: Ms. Dacy stated that when the HRA and Council went through the housing analysis process, one of the strategies was to be as aggressive as possible with grants and funding programs. The MHFA has announced the availability of $100,000 in grant funding from the Capacity Building Grant Program. The maximum grant amount is $10,000. Ms. Dacy stated staff would like the HRA to authorize staff to prepare an application for this grant. If funded, the purpose of the grant is to essentially fund a person to do a basic housing condition analysis. This analysis would allow them to update the housing condition information contained in the study on a census block and census tract basis, plus condition information on a parcel -by- parcel basis, and input that data into the GIS system. The outcome is an updated analysis of the housing condition on a parcel -by- parcel basis that can be used to identify specific properties for acquisition, demolition, redevelopment, or HOUSING & REDEVELOPMENT AUTHORITY MTG., JUNE 22, 1994 PAGE 6 rehabilitation. It will also be base information that can be used for comparisons 10 -15 years from now. The HRA members were in agreement with the preparation of an application to the MHFA for the $10,000 grant. 9. UPDATE ON LAKE POINTE MARKETING PROGRAM; Ms. Dacy stated staff has worked with the sign contractor, DeMars Signs, and the signs should be installed on the Lake Pointe site soon. The sign along I -694 will be fairly tall in order to be seen by eastbound traffic. Ms. Dacy stated Merrill Busch is continuing to work on the marketing program. Staff has done a cover letter to be signed by the HRA Chairperson and Mayor that will be included with the marketing brochures. Mr. Commers asked the allowed height and size of the signs. ,Ms. Dacy stated the Zoning Code allows a maximum height of 25 feet and a maximum size of 50 square feet. The signs will be well within those regulations. ADJOURNMENT OTION by Ms. Schnabel, seconded by Mr. Prairie, to adjourn the meeting. Upon a voice vote, all voting aye, Chairperson Commers declared the motion carried and the June 22, 1994, Housing and Redevelopment Authority meeting adjourned at 8:20 p.m. R W ctfully sub 'tted, Lynn Saba Reco ding Secretary r _ i Community Development Department HOUSING AND REDEWLOPM EENT AUTHORITY City of Fridley DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Proposed Changes to Home Mortgage Assistance Program Since we first offered this program last year, few people have applied fbr this program. Moreover, of those who have applied, most have dropped out due to the factors which will be discussed in this memo. Background As you recall, this program is designed to assist people who want to do one of the following: 1. Buy a home and make repairs or improvements. 2. Refinance an existing mortgage and complete home improvements. 3. Buy a rental home and become the owner occupant. To help facilitate the transaction, the HRA provides a small subsidy in the form of a deferred loan to help with closing costs, part of the down payment and /or rehabilitation. The HRA loan accrues no interest and is deferred until the home is sold or refinanced. Problems Encountered As we began to process applications and move people through the pipeline, we began to discover that several program restrictions simply were not workable. 1. Minimum Home Rehabilitation Currently, we require a minimum amount of rehabilitation in order to process a loan. Part of the problem is that this threshold differs depending on which option a borrower selects. For example, if someone wants to buy a home at least $15,000 worth of Home Mortgage Assistance Program August 4, 1994 Page 2 improvements are required. On the other hand, if refinancing a home at least ten percent of the new mortgage must be applied to rehabilitation. The minimum requirement not only treats borrowers differently but also makes the program cumbersome to administer. More importantly, several lenders and real estate agents have said that it is difficult to make $15,000 worth improvements and support the value in an appraisal. 2-. Homeowner Labor or Sweat Equity Currently, all rehabilitation work must be done by a licensed contractor. United Mortgage, our lender,, does not have any restrictions in this area; however, the homeowner must be able to demonstrate they have the experience and skills necessary to do the work. Fannie Mae requires the borrower to provide a contractor's estimate to ensure that there are sufficient funds to complete the work should the borrower be unable to do so. However, Fannie Mae does not prevent the homeowner from doing the work. Prohibiting "sweat equity" was a major discussion point during our program development discussions two years ago. The Executive Director wants additional information as to: 1. Other cities' experiences; and 2. What experience does a homeowner have to have to meet lender requirements. Proposed Changes In order to make the program more attractive, we are proposing the following changes: 1. Establish a minimum of $5,000 worth of rehabilitation for both a home purchase and home refinance transaction. 2. Allow home labor or sweat equity. The borrower must have the skills to do the work, subject to lender approval. Staff will research the information requested by the Executive Director and present it to the HRA in September. Home Mortgage Assistance Program August 4, 1994 Page 3 All other components of the program purchase price limits) will remain the changes and a favorable interest rate demand. These changes do not apply i Casserly has recommended that we have the changes by resolution. Recommendation (i.e. income, mortgage and same. Hopefully, with these climate we will see greater :o the other programs. Jim the HRA officially approve Staff recommends that the HRA move to adopt the attached resolution approving changes to the Fridley Home Mortgage Assistance Program subject to additional research and discussion of homeowner "sweat equity" at the September meeting._ Staff will process applications regarding the $5,000 rehabilitation amount, but withhold action on sweat equity until September's meeting. If the HRA chooses not to allow sweat equity in September, the resolution will be amended accordingly. C: \wp \housing \mrtge.prg \changes GF/ M -94 -429 U9 a RESOLUTION NO. HRA - 1994 A RESOLUTION AUTHORIZING THE MODIFICATION OF THE FRIDLEY HOME MORTGAGE ASSISTANCE PROGRAM BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority "), as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority modify the Fridley HOME Mortgage Assistance Program (the "Program ") which has been established for the residents of the City of Fridley (the "City "). 1.02. It has been further proposed that the Authority enter into the necessary agreements to implement the modifications to the Program including the amendment of the Mortgage Origination Agreement (the "Origination Agreement ") with United Mortgage Corporation, or its transferee, Bank of America, FSB (the "Bank ") as participating lender. Section 2. History. 2.01 The Authority authorized the establishment of the Program by Resolution No. HRA 4 -1993 adopted at its meeting on July 8, 1993. 2.02. The Chairperson and the Executive Director of the Authority executed the Origination Agreement dated as of .December 1, 1993. 2.03. The Chairperson and the Executive Director executed a consent to transfer the rights and obligations under the Origination Agreement from United Mortgage Corporation to Bank of America, FSB. Section 3. Findings. 3.01. The Authority hereby finds that the Program will be most effective if the minimum amount of rehabilitation to qualify for a Refinancing /Rehabilitation Loan or an Acquisition /Rehabilitation Loan, as they are defined in the Origination Agreement, is not less than $5,000.00. Page 2 - Resolution No. HRA - 1994 further enhanced if the borrower ' e to complete the rehabilitation sect to the approval of the Ban s allowed by the Federal National Mortgage 3.0� The Authority hereby finds that the adoption of the Z modifications to the Program promote the purposes of the Authority as those purposes are defined in Minnesota Statutes, Section 469.001, et sect. (the "Act"). Section 4. Authorization of Modifications to the Program. 4.01. The Authority hereby approves and adopts the modifications to the Program as described above. Section 5. Authorization for Execution of Amendments to the Origination Agreement and Revision by Supplemental Notice. 5.01. The Authority hereby approves Amendments to the Origination Agreement as described above and Revision by Supplemental Notice, as provided in the Origination Agreement, and authorizes its Chairperson and Executive Director to execute amendments to the Origination Agreement and Revision by Supplemental Notice on behalf of the Authority with such additions and modifications as those officers may deem desirable or necessary as evidenced by the execution thereof. 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 911 r _ Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Authorization to Purchase 550 Hugo Street N.E. We have successfully negotiated the purchase of a fourth property under the scattered -site acquisition program. The property is located at 550 Hugo Street N.E. and is owned by Herbert M. Hansen of Minneapolis. The subject property consists of a single family structure approximately 700 square feet in area which is in very poor condition. The home has been vacant for two years and is currently used for storage. If acquired, the lot could not be re -sold for construction of a new home. It could, however, be combined with an adjacent lot to the east which we are also attempting to purchase. The property was appraised by McKinz,e_Metro Appraisal for $36,000 (Assessor's value: $37,100); however, the owner agreed to sell for $34,800. The purchase price is well within the HRA's negotiation guidelines. Photos of the site will be presented at the meeting. Recommendation Staff recommends that the HRA authorize the purchase of 550 Hugo Street N.E. from Herbert M. Hansen for $34,800 and authorize the Executive Director to execute a purchase agreement for said property. GF /dn M -94 -418 a° 0 TO: FROM: DATE: Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley Housing and Redevelopment Authority Members William W. Burns, Executive July 20, 1994 Director of HRA k. �,. SUBJECT: Potential Funding for Moore Lake Apartments Project The City has been working with Moore Lake Apartments for several months to attempt to work out parking problems that are forcing apartment dwellers from those units to park on City streets. In general, we believe that it is to the City's benefit, as well as to the apartment owners'. benefit, to work with the owner of Moore Lake Apartments to identify solutions to the parking problems. One of the owners of the apartment;,units Dave Stewart, has been contacting nearby land owners to determine if portions of property can be purchased for expansion of parking. One of the landowners .is the .City of. Fridley which owns 5720 Polk Street, a vacant lot located immediately adjacent to the Moore Lake Apartments. Other owners include, Uno -Vert, the owner. of the Union 76 gas station; and Mr. Bob Gilstad. At the present time, neither Uno-Ven nor Mr. Gilstad seem to be willing to sell to Mr. Stewart a piece of their property for parking expansion. Mr. Gilstad will make available an easement that .would allow Mr. Stewart to move the Moore Lake Apartments fence in for the purpose of pushing snow from the parking lot. This leaves the City property which is a large lot that contains 17,087 square feet. Mr. Stewart is requesting that the City sell to him a piece of land that is 35 feet by 163 feet long (5,705 square feet). This would -still leave a sizeable piece of property for the construction of a single family dwelling. We met with Mr. Stewart on Tuesday, July 19, 1994, and during our meeting we identified costs of approximately $31,500 for constructing the parking lot, not including the cost for acquiring the City's property. V Moore Lake Apartments Project July 20, 1994 Page 2 Mr. Stewart indicated that he is having difficulty financing that amount, and is asking for help from the Fridley HRA. In view of his request, I would like to suggest the following agreement with Mr. Stewart: 1. The City agrees to sell a strip of property necessary for expansion of parking to Mr. Stewart for $5,000. 2. The Fridley HRA agrees to loan the Moore Lake Apartments the sum of $10,000 for total projects costs. The loan would be repayable over a ten -year period, with principal and interest payments being deferred for two years. Mr. Stewart thinks this help will be significant and will enable him to proceed with the project. At this time, we are recommending that the HRA concur with the terms. of this agreement and that it authorize staff to formalize the agreement for consideration at the next HRA meeting, t Thank you for your consideration of this matter. WWB: sc 3A a° 0 J Community Development Department • PLANNING DIVISION DATE: July 28, 1994 City of Fridley TO: , William Burns, City Manager / FROM: V Barbara Dacy, Community Development Director Scott Hickok, Planning Coordinator - SUBJECT-.-. Moore• ha ke:'Apan�eAts Parkrrg Expansion :... Councilmember Billings_! °asked staff to'prepare a map-of the Moore Lake Apartment complexx,!,includi.uig` the potential expansion area on- the City -owned property -'-to the north. Staff met with David Stewart of Paragon Real Estate, who represents -Moore lake`Apartments ,!-The discussion centered on the potential expansion'.-! of the- - parking area through .a purchase-of a, portion of the City -owned lot north of the existing parking.area. Stewart mentioned e,that =,he. has plans not- only for -, the.-City-owned parcel but also for the property owned-by Mr. Gilsted. In preliminary discussions with Gilsted, Stewart determined that Gilsted would be interested in an easement, allowing Stewart-to improve the parking area and provide for snow storage in the winter months. This easement area would not, however, be used for additional parking spaces. As part of the Stewart /Gilsted negotiations, Gilsted is interested in having Stewart pursue a rezoning of the Gilsted property from its current C -1 zoning classification to an R -1 zoning classification. The proposal that Stewart discussed with staff would not only require a rezoning of the Gilsted parcel but would also require a plat or a lot split to subdivide the City - owned parcel. As you can see from the attached map, a subdivision or lot split.would leave the City with.a.77' x 140' lot. This lot would be comparable to the other residential lots in the neighborhood. As a result, staff believes that the lot split could take place without detrimentally affecting the salability of that lot for a single family home.. Discussing this matter with Randy Kurth of understood that Kurth will approach Anoka they would approve a lot split despite the property is Torrens. Kurth felt confident 9-01 Kurth Surveying,,.it is County as to whether fact that this that we would be able Moore Lake Apartments Parking Expansion July 28, 1994 Page 2 to accomplish this with a lot split rather than a replat. If so, this would save us a great deal of time. A special use permit in accordance with Section 205.09.01.C.6 would also be required for parking expansion on an adjacent site. Finally, a number of variances would be required, in order to allow parking along Polk Street to come within 20 feet of the right -of -way as opposed to 35 feet as required by code. Stewart also indicated -that although he is going to be reworking the asphalt in the entire parking area as well as the new expansion = . , area,, he :was- not -interested • i he ,n: - curbing' .t .perimeter :-of parking •.lot. A variance would be required if Stewart -was=-to deviate from.the curbing requirement. To recap,.the attached,parking plan will provide additional parking (87 total spaces), snow storage area, and.a new dumpster location. Staff believes this solution may be the best alternative considering the lack of interest of Gilsted or Union 76 to sell the land required for additional parking expansion. - We will continue to update you as this plan and negotiations for purchase of the required City parcel move ahead. Please let me know if you have any questions or wish to discuss this matter further. SH /dn M -94 -402 3C N Casserly Molzahn & Associates, Inc. 215 South 11th Street, Suite 300 • Minneapolis * Minnesota 55403 OftiCe (612) 342 -2277 • Fax (612) 334 -3382 M E M O R A 13 D U M TO: Fridley HRA FROM: James R. Casserly Mary E. Molzahn DATE: August 2, 1994 RE: Moore Lake Apartment Project Moore Lake Apartments needs some additional land for parking. To assist with the parking problems, the City is considering the sale of approximately 51700 square feet of land which it currently owns and which is adjacent to the Moore Lake Apartments. The City land sale would be in the amount of $5,000. In addition, to facilitate the Construction of the parking treatments, the HRA is being asked to -loan the- propertiyowner, Paragon, the sum of $10,000. Paragon would execute a note and a mortgage in the property to secure the note. If appropriate, we would also obtain a guarantee. The attached schedule for the note has no payments being made until August of 1996. Interest would accrue and would,be added to the principal. The note would then be amortized over then remaining eight years at $779 to be paid semi- annually with the last payment.in August of 2004. The interest on the note is at a rate of 5% per annum. The note terms are similar to other arrangements the HRA has made in the past. If there are any questions, please give us a call. S T : T T t7G , ,;:,0 Einu . Z0d ZSZ EZ-Iow A1Rtl9SSU0 3D . 2822 022 ZT9 CITY OF FRIDLEY, MINNESOTA MOORE LAKE APARTMENTS BEGINNING DEFERRED PRINCIPAL INTEREST -------- TOTAL -- ---W -- ENDING DATE BALANCE INTEREST PAYMENT PAYMENT PAYMENT BALANCE 10 / 1994 _� -------------------------------------------------------------- 10,000 0 0 0 0 10,000 2 / 1995 10,000 167 0 0 0 10,167 _8 / 1995 10,167 254 0 0 0 10,421 2 / 1996 1 O, 421 261 0 0 0 10,681 8 / 1996 10,681 512 267 779 10,169 2 / 1997 10,169 525 254 779 91645 8 / 1997 9,645 538 241 779 9,107 2 / 1998 9,107 551 228 779 8,556 8 / 1998 8,556 565 214 779 7,990 2 / 1999 7,990 579 200 779 7,411 8 / 1999 7,411 594 185 779 6,818 2 / 2000 61818 609 170 779 6,209 8 / 2000 6,209 624 155 779 5,585 2 / 2001 5,585 639 140 779 4,946 8 / 2001 40,946 655 124 779 4,291 2 / 2002 4,291 672 107 779 31619 8 / 2002 3,619 688 90 779 2,930 2 / 2003 2,930 706 73 779 2,225 8 / 2003 2,225 723 56 779 1,501 2 / 2004 1,501 741 38 779 760 8 / 2004 760 760 19 779 (0) 681 10,681 2,561 13,242 LOAN CLOSING DATE 10/01/1994 FIRST PAYMENT DATE 8/01/1996 FINAL-PAYMENT DATE 8/01/2004 PRINCIPAL 10,000 INTEREST RATE 5.00% TERM 9 YEARS /10 MONTHS MOOREI PREPARED BY CASSERLY 14OLZAHN & ASSOCIATES, INC. 26- Jul -94 ZT:6e b6,2O Eina Zed esz HOW A-IN3SSdD 3E 2822 b££ Z19 TO: FRIDLEY H.RA FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES JUNE 1994 OPERATING EXPENSES: PHOTO—CARE — PHOTOS Account #'s for Account #'s for 236-0000-336-3000 HRA7s Use City's Use ADMINISTRATIVE BILLING: 236 —per- 336 —WW US WEST — TELEPHONE SERVICE ADMINISTRATIVE PERSONAL SERVICES 14,687.00 101-0000-341-1200 ADMINISTRATIVE OVERHEAD 103.00 101-0000-336-3000 COMPUTER OVERHEAD 194.00 101-0000-336-3000 (For Mlefo & Mimi computers) TOTAL ADMINISTRATIVE BILLING: 460--0000 -430-4107 OPERATING EXPENSES: PHOTO—CARE — PHOTOS 460-0000-430-4221 11.18 236-0000-336-3000 NORTH MEMORIAL MEDICAL — FITNESS 262-0000-430-4330 38.50 236 —per- 336 —WW US WEST — TELEPHONE SERVICE 262-0000-430-4332 14.16 236-0000-338-3000 NYSTROM PUBLISHING — SUMMER NEWSLETTER 460-0000-430-4334 770-75 236-0000-336-3000 TOTAL OPERATING EXPENSES: BENEFITS EXPENSES: CITY OF FRIDLEY — HEALTH INS CITY OF FRIDLEY — DENTAL INS CITY OF FRIDLEY — LIFE INS 262-0000-219-1002 262-0000-219-1100 262--0=-219-1200 TOTAL BENEFITS EXPENSES: TOTAL EXPENDITURES — File: 1123DAT*HRA%TlRj3lWNMwkl Details JUNE 1994 0.00 236-0000-219-1002 0.00 236-0000-219-1100 0.00 236-0000-219-1200 P . , G1 , • W p w 45 Q w m i a ow r W , 117 F r Z OC . r w M 2 W OC V . , a . U. LU , . W , o, d , r , , . i . r , dx tu N i d I-. i 117 i V i W , W , IV , K W F a . a . , F i i d p r Y W , V H i 38 , J Im , 1 S W N , , K u . . V 2 r F . Z W . . O . CO J . . O W W i P du p . Z . \ 117 O —9= —O . w 2r W i p W Us r , 01 d p i i K OC OC i i d6U. . N.Z. a .Z. Y Y Y j Im agne8 Z of �u. J 117 117 117 1.- 0 r 222 IA Y W w w w r m cc 2ZMm GC C AA W(A MM O O O O O W O a 99999 0 0 N O Q \ p M�tM1n0 BOO �,OMIA--M 00 m on In 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Z W Q Oln C3, !P 00 BOO NCO �O m on In ppO}} MM�,099 0 0 0 0 0 0 0000 co, 0 xxx M O M O O tj Li U M m � m cm cm A P P P P P P 1\ 0 CD C20 \ \ \ \�\ �O �O NO O %O O V-02. . a p W N N W O A: d N O V H F- V ,O TO: FRIDLEY H.RA FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES JULY 1994 ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES ADMINISTRATIVE OVERHEAD COMPUTER OVERHEAD (For Mkro & Mimi computers) TOTAL ADMINISTRATIVE BILLING: OPERATING EXPENSES: POSTAGE BY PHONE COPIER ALLOCATION JAN — JUNE POSTAGE BY PHONE AT&T LONG DISTANCE US WEST — TELEPHONE SERVICE COPIER ALLOCATION JAN — JUNE BURNET REALTY — BACON EARNEST MONEY RITZ CAMERA — FILM Account #'s for HRA's Use 460- 0000 -430 -4107 262 —OODO- 430 -4332 262- 0000 -430 -4335 460- 0000 - 430 -4332 460- 0000 -430 -4332 460- 0000 -430 -4332 460 -0000- 430 -4335 460 -0000- 430 -4510 450 -0000- 430 -4221 TOTAL OPERATING EXPENSES: BENEFITS EXPENSES: CITY OF FRIDLEY — JULY &AUG HEALTH INS 262 -0000- 219 -1002 CITY OF FRIDLEY — JULY & AUG DENTAL INS 262 -0000- 219 -1100 CITY OF FRIDLEY — JULY LIFE INS 262 -0000- 219 -1200 TOTAL BENEFITS EXPENSES: TOTAL EXPENDITURES — JULY 1994 Flo: %12WATAIHRA\7MlWNa wki Details =0 14.687.00 103.00 194.00 14.984.00 Account #'s for City's Use 101 -0000 -341 -1200 101 - 0000 -336 -3000 101 - 0000 - 336 -3000 138.06 236 -0000- 336 -3000 10427 236- 0000 - 336 -3000 21:46 236 -0000- 336 -3000 0.73 236- 0000 - 336 -3000 13.35., 236- 0000 -336 -3000 128.30 ` 236 -0000- 336 —WW 1.000.00 236- 0000 -336 -3000 4.96 236- 0000- 336 -3000 1.411.85 351.80 236- 0000 -219 -1002 41.06 236 -0000- 219 -1100 4.25 236 -0000- 219 -1200 397.11 P . ti o . aui �m: d z : z6. «. 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PP0, PPAII,P0- . wQ' QI fiAPPPPPL+ 7V7 �7m7tf1 tt�676�iF1 h7V 1ls�fr�il76�f17tl367UI131[iiV) ..ivi �i. 4t° J{' Jt`1CdNN00000000000000'00000000 NI\NhI\�•�P•1 ri \`•�IDID�m1%\W NI. mmOlD�WG!)mmm�mmm� ap� F O F W 73 Q a A C] I Community Development Department D HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Housing Program Update Housing Rehabilitation We have prepared the attached summary of housing rehabilitation activity for July. The report also includes figures for year -to -date activity. Some of the numbers may be confusing, especially with regard to the total applications approved and denied. For example, in the Home Mortgage Assistance Program, a total of five'applications have been received so far this year, two were denied and three are still in process with United Mortgage. The CDBG grant program is very successful in terms of numbers of applications and the amount of households who are receiving grants. Interest in the loan program is increasing; hopefully, interest in the changes we are contemplating will help to increase those numbers. Scattered -Site Acctuisition To -date, three homes have been acquired and a fourth is 'in process. Two additional properties are being appraised and could be acquired sometime in August. Staff is continuing to work with the Engineering Department to get estimates for demolishing the homes we purchased. Tentatively, we plan to start demolition on August 22, 1994. A summary of this program is attached for your review. Minnesota Cities Participation Program We have added Directors Mortgage Loan Corporation to our list of approved lenders. Directors Mortgage, which has four offices in the Metro area, is the 15th largest mortgage lender in the Country. We now have seven lenders approved to process loans. Marquette Bank Brookdale mortgages under the 1993 continued marketing,- we funds ($750,000). GF /dn M -94 -417 has indicated that they have closed five .program for a total of $360,520. With should use our entire allocation of 1994 9z t, tj L I IV Oi O P �a V x N M M N N IR A u N N N .o M N a O m m O i 5A 4 w +• o �- M M M EEE U 0 ti O fR O tR p M C O M 0 3 O' u N � N N ca M N N O O � Y _7E V C O 7 N r � � O 40 a a a N N O O 7 2 o lQ C D- ++ D u d p� a x Q %` M O O 7 -a N S M L O M 79 u 7 too 7 E C C m � m avi E aODa co .nE ca m GL O L LO r d OLD ` C co oC ` L M �. d x M d O I C yE C W ca M C C- L. O a d 0 x� xc� xQ x� N M M N N IR A u N N N .o M N a O m m O i 5A s..:;hhirif� ;Ai... ,....,... ieis.!, ..., .. :i +. ...�;:;.:1 ,..,,...11 iY. l.:w il�:25:.8ii:Iiia:.lilj:.:fh:.: 7<a A: �: C:( M >i!1>•.u.!gt�. >...`.ti`nh ...... . .... ...... ..... _ ... ....... .. ..... , ,...... .... . .. Scattered Site Acquisition Program Parcel List and Activity Summary Parcels Owned Address 187 Longfellow St. NE 8280 East River Rd. 6409 East River Rd. 550 Hugo St. NE * Pending approval by HRA. Parcels Under Consideration 683 Glencoe St. NE 677 Hugo St. NE Date Purchase Buildable Acquired Price Lot 24 Apr 94 $31,320 Yes 24 Jun 94 $48,000 Yes 21 Jul 94 $41,000 Yes Aug 94 $34,800 * No Totals $155,120 0 C% Community Development Department i HOUSING AND R►EDEwLop ENT AUTHORITY City of Fridley DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Fake Pointe Marketing A variety of activities are occurring regarding marketing the Lake Pointe property: 1. Signs. The signs were installed on the property on Thursday, July 28, 1994. We are now evaluating whether illumination of the sign on Highway 65 is prudent. I will be observing the signs during the evening hours to see if the ambient light from the highway lights sufficiently lights the sign such that it can be read by passing traffic. In the meantime, Merrill Busch asked an electrical contractor to contact NSP to determine what.the cost would be to illuminate the signs. The cost for lighting the Highway 65 sign is $3,177.14. The cost for the I -694 sign is $5,722.86. The I -694 sign is more expensive because an underground conduit is necessary from Highway 65 (about 2,000 feet). Jon Thompson is also concerned about the impact on the underground'irrigation in this area. Merrill Busch and I recommend that because of the cost and impact to the property,.just the Highway 65 /Central Avenue sign be illuminated. Prior to expending this money, however, I would like to see if the signs could be read with the existing lighting along Highway 65 during the evening hours. 2. Magazine advertisements. Merrill Busch has prepared half - page, four color ads to be presented in the September issue of Twin Cities Business Monthly, one of the August issues of the Minnesota Real Estate Journal., and the September commercial real estate issue of Corporate Report. I will bring a copy of the "mock -up" to the HRA meeting. L Update on Lake Pointe Marketing August 4, 1994 Page 2 3. Mailing List. Merrill Busch has prepared a mailing list to 310 commercial brokers and realtors in the Metro area. A cover letter for the marketing brochure will be sent to all persons on the mailing list. The cover letter will be signed by Larry Commers and Mayor Nee. Merrill Busch has finalized two additional inserts into the brochure regarding the City's financial stability and recreational resources. Again, copies of the proofs will be brought to the August 11, 1994 meeting. 4. Jim Stuebner. Bill Burns, Jim Casserly, and I met with Jim Stuebner of Five Star Realty and Development Company on Wednesday, July 27, 1994. Stuebner is interested in acting as a potential consultant to the HRA to market the Lake Pointe property. Stuebner is also a developer (he developed Northland Park, the 400 acre business park in Brooklyn Park). Bill Burns asked Mr. Stuebner to specify his marketing strategy and how he would work with Busch. Stuebner strongly believed that he could attract a user from out of state using his national NAIOP contacts. No commitments were made at our meeting with Mr. Stuebner. We discussed his project in Brooklyn Park at length as well as his experience in other communities. We also.explained the HRA's strategy for marketing of the site. 5. Tharaldson Development Company. I also had a contact from the Director of Real Estate of Tharaldson Development Company. This development company.is a developer for a variety of hotels, including the Mariott Inn and Comfort Inn. He requested specific site information for the area immediately adjacent to Highway 65. I sent him a copy of our brochure as well as some of our previous grading and utility plans for the site. Merrill Busch is also proposing to send out a reminder post card to persons on the mailing list in October. Also, he is suggesting that a "tabloid" newsletter be used to update people on the mailing list regarding issues pertaining to the site. Examples of these two approaches will also be brought to the meeting. BD /dn M -94 -421 r _ Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Dairy Queen Relocation Don Fitch has confirmed that he will cease operation at the Mississippi Street Dairy Queen on Sunday, August 21, 1994. Fitch will pay rent through August 21, 1994. In the meantime, a permit has been issued for Fitch to remodel the former Marquette Bank building on Osborne Road. Fitch hopes to open the new Dairy Queen on September 1, 1994. Unless otherwise directed, staff will proceed to solicit quotes for the demolition of the Dairy Queen building and schedule approval of the successful bidder at an upcoming HRA meeting. BD /dn M -94 -419 PER r � Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Fridley Town Square Project On August 2, 1994, I contacted Lowell Wagner regarding the status of the redevelopment project. Wagner stated that he is still seeking a replacement tenant for-Walgreens.. He is still interested in the project and will pursue it as long as Norma Swanson continues to cooperate. At this point, Wagner and Swanson just have a verbal agreement to cooperate. Wagner does have formal agreements with the two property owners of the single family homes to the east. Wagner indicated that he still has .a number of smaller tenants interested in the building, but he'needs,a larger replaicement, tenant for Walgreens. Wagner is also confident that he,-can obtain the appropriate financing from financial institutions once a suitable tenant is found. The property is zoned S -2, Redevelopment District. The district permits the City and the HRA to monitor the types of uses occurring in the existing building to determine if'they are consistent with the "redevelopment objectives" of the City. Swanson has been advised of this procedure and we are, to -date, working well together regarding temporary tenants occupying the building. No action is needed by the HRA on this issue. We will continue to provide updates. BD /dn M -94 -420 A � Community Development Department HousING Alva REDwELopmFm AummrrY City of Fridley DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Gunderson Property; 5705 West Moore Lake Drive N.E. Ms. Sadie Gunderson contacted me on July 12,1994 inquiring about the HRA's interest to purchase her property. .his you are aware, the City has a.purchase agreement with Ms. Gunderson that is valid until October 31, 1994. The original purchase price in the purchase agreement executed by Wier and Ms. Gunderson in November of-1986 was $94,500. Approximately $6,000 has-been paid to -date. This leaves a remainder of $88,500. The purchase agreement indicated.-that approximately $2,000 was for moving and relocation.expenses. The. Assessor indicates that the estimated current market.va�_.ue is $79,600 (the City's assessed value is $73,200). Acquisition of the Gunderson property was required -in.order to complete the intersection improvements at West Moore Lake Drive and Highway 65 as well as to satisfy a requirement of the MPCA Indirect Source Permit. Should the HRA desire to proceed with the acquisition of the property, we should try to acquire the property and close as soon as possible so that Ms. Gunderson does not have to move in the middle of the winter, and to avoid an ownership /lease -back arrangement. Ms. Gunderson indicated that she is-asking for $88,500. As was done in the Hedman sale, it may be prudent to try to negotiate an acquisition cost which better reflects the value of the property. Ms. Gunderson indicated that she may be willing to extend the purchase agreement another year; however, she would prefer to move as soon as possible. BD /dn M -94 -422 �j i i - - - - T7 n : . a° 0 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley. DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Demolition of Scattered -Site Properties The Executive Director authorized staff to proceed with obtaining quotes for demolition of the scattered -site properties at 6409 East River Road and 187 Longfellow Street. The Fire Department also burned the house at 8280 East River Road. The attached memorandum from Clyde Moravetz indicates that Veit and Company, Inc., has provided the lowest bid -of $16,039. Unless otherwise directed, staff will execute-the-appropriate-contracts with Veit and Company, Inc..for the amount indicated. (The Engineering. Department has advised us that quotes versus formal bidding is acceptable-if the project cost is below $25,000.) The HRA should also be aware that the property at 8280 East River Road experienced a significant amount of damage, or "scavenging ", prior to the demolition by the Fire Department. We believe a relative of the previous owner removed the garage door, fence, and other items from the house. The building was left unsecured and the property was littered with debris. However, we have no proof to support our suspicion. Scavenging at 187 Longfellow Street also occurred. Unless otherwise directed, staff will arrange to demolish the building within days of the acquisition to'avoid vandalism and scavenging. BD /dn M -94 -424 10 Engineerinn Sewer water Packs Streets Mainienancc MEMORANDUM TO: William W. Bums, City Manager PW94 -269 FROM: John G. Flora, Public Works Director U,Y, f Clyde V. Moravetz, Engineering Assistant DATE: August 1, 1994 SUBJECT: Project No. 271 Demolition Quotes. (HRA) The written quotes for project No. 271 (Demolition of Houses at 6409 and 8280 East River Road and 187 Longfellow) were due today. We received. two quotes and they are as follows: (See attached) 1. Veit and Company, Inc .............. $16,039 2. Herbst & Sons Construction Co., Inc.... $17,680 ; mss: The low bid is Veit and Company, Inc. who also provided a bid bond of 5 %. (Also attached) Veit has indicated .they will work with E. H. Renner & Sons in capping the wells as required by the State. Recommend awarding demolition project to Veit and -Company, Inc. for:, the amount of $16,039 with work commencing after August 15 and seeding, mulching commencing after - September 15 with completion by September 30. CVM /JGF:cz Attachments 10A' i_ -P l • DEMOLITION PROJECT 187 LONGFELLOW. 6309 & 8280 EAST RIVER ROAD 117 BID FOR PROJECT NO. 268 DEMOLITION OF STRUCTURES AT 187 LONGFELLOW AND 6409 AND 8280 EAST RIVER ROAD FRIDLEY, MINNESOTA 55432 Class of Work: Building demolition and disposal, light grading, seeding, sodding, partial bituminous driveway removal and concrete removal and disposal. Proposal of: Name 001) U, idress City 5637 Zap' Code To furnish and deliver all materials and to do and perform ail.work, in accordance -with the Contract and Specifications on file in the office of the Public Works Director and the 'Special Provisions" contained herein for. 1. Demolition and disposal of the entire buildings, debris and all contents, including outside stored materials, located at 187 Longfellow and 6409 and 8280 East River. Road, Fridley, MN. 2. The removal and disposal of driveways and all concrete slabs located within the parcels mentioned above. Garage 'at. 8280 East River Road to be moved from site by others. 6409 East River Road has full basement which requires foundation removal and proper'fill and compaction. 3. Fill material, grading, topsoil, mulch and seed or sod after demolition of structures, concrete slabs,. and bituminous driveways. 4.. Preserve trees in existing condition where at all possible. 5. Work with City hired contractor to expose well locations in order to cap and seal. Lump Sum Bid $ A. (Figures) Al Lump Sum Bid ��- (Word Signed: 20 DEMOUTION PROJECT NO. 271 187 LONGFELLOW. 6409 $ 8280 EAST RIVER ROAD �V BID FOR PROJECT NO. 268 DEMOLITION OF STRUCTURES AT 187 LONGFELLOW AND 6409 AND 8280 EAST RIVER ROAD FRIDLEY, MINNESOTA 55432 Class of Work: Building demolition and disposal, light grading, seeding, sodding, partial bituminous driveway removal and concrete removal and disposal. Proposal of: HERBST & SONS CONST . CO., INC. Name 7299 (:n- Rd- H_ Street Address New Brighton, Minnesota 55112 City State Zap Code To furnish and deliver all materials and to do and perform all work, in accordance with the Contract and Specifications on file in the office of the Public Works Director and the "Special Provisions" contained herein for . 1. Demolition and disposal of the - entire buildings, debris and all contents, including outside stored materials, located at 187 Longfellow and 6409'and 8280 East River Road, Fridley, MN. 2. The - removal and disposal of driveways and all concrete. slabs located within the parcels mentioned above. Garage at 8280 East River Road to be moved -from site by others. 6409 East -River Road has full basement which requires foundation removal and proper fill and compaction. 3. Fill material, grading, topsoil, mulch and .seed or sod after demolition of structures, concrete 'slabs, and bituminous driveways. , 4. Preserve trees in existing condition where at all possible. 5. Work with City hired contractor to expose well locations in order to cap and seal. Lump Sum Bid 17,680.00 f)��'a (Figures) Lump Sum Bid $ cFtTFNTRF.N THnTTSANn SIX HTTNDRFD FTf HTY DOLLARS (Words) Signed:j/,- �It/i'}1 'l. /� 20 10C e THE AMERICAN INSTITUTE OPARCHITECTS. Ala Document m fU Bich Bond KNOW ALL MEN gy TMES£ PRESENTS, that we Veit & Company, Inc. Rogers, Mlif as Principal, hereinafter call theP'rindpat, and Merchants Bonding Company (mutual) a corporation duty organized under the laws of the State of Y owa as Surety, hereinafter celled the Surely, are held and firmly bound unto City Of Fridley, MN as. Obligee, hereinafter wiled t e obggee, in the sum of ViVQ PDXOGnt (5%) Of AtmoUnt Hid Dollars (� gg ), for the payment of which sum well. and truly to be made, the sald Principal and the sail) Surety, bind ourselves, our heirs, executors, administrators, successors and assigns, )ointlyand severally, firmly by these Presents. WHEREAS, the Principal has submitted bid for : oa Of 187 Longfellow, 6409 & 8280 East t Riv ®r Frid3 l�emolitx ey MN NOW 'THEREFORE, if the Obrope shag accept the bid of the Princlpal and the Principal shalt enter into a Contrsct with the Obti ee In accordance vYith the terms of such tad, and yin such b I and the al al Contr5lDocuments with r specified in the bidding or payment of tabor and nmater f h�ciln presm�„t,'wf 8th fiuelc performance n ° }C.,e° t e oaf p npci�at F enter such Contratt and give 6uch bond or bonus, If the Principal stall the penalty hereof between theamaunt specifiedin sell bidand such lar the Obligee o8w�hthe he o I c e of to exceed fal:h tor,truct with another arty to perform the Work covered by said bid, .then this obligation shalt be null and void, otherwise to remain to full orce and effect. Signed and se l 1st day of August: t 99 94 j Veit: & Compa y, In . fPdn - lWan��s} (rmUoJ r • Merc 77 ondi.n Com an (1`9itt (Su loess) 8y: Ic ;Q ,,...V Attorney- In-Fact au DOCU UaMA3.to. ela BOND S MAN 0 VEBRUARY Isiv to.. THE AMEttiGW rN57i1 tlfF pcnRCH1TECrS, i735 N.Y. AvE , h.W , W,uHINGTO►Y. O.G. 20006 10D STATE OF COUNTY OF on thin- �� day of came before iue personally same same to Who executmd the foregoing boq , and eaghtsevernlly-e�ok acknowledged the same to be hie awn free act and deed. Notary Publ q STATE OF MINNESOTA COUNTY OF RAMSEY On this day of . 19, before me appeared ,lay Nisbet to me personally known ,who, being duly sworn, did may that he is the AttOrAey -in -.rant of the MERCHANTS .ad ND%kG .COMPANY MUTUAL that the seal affixed to the foregoing instrument is the corporate seal of said corporation) that said instrument was signed and Sealad on behalf of eai.d .corporation by authority of its Board of bisectors, and said Ja Nisbet acknowledged said inatrument to.be tho tree cot h tion. IAMMV LYNN BURKE Ltatkt n�eslc�alt�aor& � � � RAWff CGOW Notary ubli _ dF TNt T� STATE COUNTY QF..�� On this I-1 1st day of August - 19 94 _,before ma- personally came ` to me known, who, being by me duly sworn, did depome and say; that he resides in that he is the f of the Veit & Go an , Inc the corporation described in and which executed the above instrument; that he knows the seal or said corporation; that the seal affixed to said instrument ie such corporate seal; that i was eo affixott by oxder of 'the by of order. Directoxg of said Garpgration ,. a d that he ai ed��ti nsme' thexeto by like oxder. ►��Am No STEPHEN I CROT €AU X01ARY PUWI4C �: Mlrci�SUl�j l k HENWIN COUNTY d.' �t✓ My commission expires 3 -29 -91 r I 1 0E e Merchants Bondi ng Company POWER OF ATTORNEY of the 8 e �.e Presents, mat me MCKWS 60NDM CCMli3ANY (MutuaD a eorparet i duly orpa�sed urger !hs 1Awa appolntsd, arrd on tV IP w MgI%�000rMrrt neana � �* °e, Qour�fyy of fioik, scare ca t Md gash meals, auZW.0 o ens Litton X. S. lrieid, Litton S. S. Field, Jr., Ix. A. Jens, Jay Xlzbet or F. $. 1.=nat e" of Saint Paul 1'tl tttueno t.9, Its tare etrtd tawltd and suthOW ftMby onfArred In 46 name, pj antl 4sd, go gfgN aoiscute. AftMW- 4%v, wfth tuff pmW 8dmow( 6ga end doMwr In ft behalf as surety: AxW or all bomb; or =dgYt»akiugs provided that no bond or un4ortodng eaeoute4 under this AUtharity 811911 exceed in anouut the stm0. of M M'M10 i FM flIi MMM TBDII$M ($2„500.000.00) Dollars W to bind the MERCMWS tiO"a COMPANY (Muww) tt mby as t,,�yyArai to the 88mo aureoles 8 such bond ortatdertakfrtD was blpned by Urn duly authorized ottloere of the MFACRAUM BoNpING COMI�AhIY (Mutueq, ertd an sire ass of geld Attorney, pWreWant m the AWthorlty herein glyen, are hefty � cp�� Yale POW"- Attorrtoylemado and twraWantta aV0yaWW4yaftha following BY.LawsadapW ard pf bagatore of the MEROHANTS SONONO COMPANY (MUtWaf� byUSe t3o ARTICLE & SECTION L — TM C RAIM an of 618 guard or prUMOM Or any V10 � lhW, Faet,,sna m'm trer(ze thsM m onotule on behal ARTtCL62, SECTION $. — Ths Pawarof Attomave�6.e,.b. 4u mm slpffet n or ssvzsury ehab h4W pour and tmpany, and stoma ew goal of the oftaotas dutwh M VAtne.a Whlirsof, M&9C1MM BONDMtIS COMPANY (MOOq his caused these praaeJtta to be eupnsd by its Vlee prosldertl arttl President one tes ce>porate seat to be hers" atttiwd, +aria 209 day of April A.D., is 941 Aicesk MGRC3 WTS BONDING COMPANY (MbWary A I, BY v�kt+u STATri OF IOWA COUNTY OF POLK e• On this 20th •` ��`� ��`• We. 8rundsgo, to me psr e"* knowq, who 191 �r31 �A 94 . , bolero fie erpposred M4, 1prtg artel bit me duly t wli did say that they are Vic* Pr'O kWI and SOM(arylfteesumf ra+P ply 4t the MtsACHAN is $ONDWQ COMpANy S�ths ►paratlon de�ri!>rd In the iaragttlnp Enamyunrttt, and sti+al 808 Seal beha 10 the said Instrttntont Is th. Cerpo�ry 6val at bald Corporation end that the said fnviru was I lghed and aealetl in Behan of said Corp�attan by auetonty s! its t3osad � Direnors, in Tbstihtony Whereof, I hew hermmto M rq hand and db ed my o}pcln gam, a1 the City of 064 Moines, laws the day and year first above w►itan. t o.• VY N @ • IOWA �• ate'••......• �r +•vvvvv••••v STATE OF IOWA COUNTY OP p= mud" Ly +racy A„ ode, eat cmuxr, t..• l�yCce+ut7lfftae ZvNrq ti -4-95 I, Md• Long, v`9 Pr.sidentof the MMCHANTS BONDING coMpMy (MWSU¢f), do hereby iwagohry is a true and corrtct of tho POWER OF ATTORNEY, euvcuted by sold A COMPANY (Mvtuai), YOM Is Sidi In and eMaot. In Witness %w. I hove hero ti t t hand arrd tamed the goal of the convany, M St . p� CIS 1st da of g 94 This power of attwn y w*.s Depainber iii 199$, M800014 1OF I_q °.-.. a i Community Development Department HOUSING AND REDEWLOPMENT AUTHORITY City of Fridley DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Consider Participation in ACCAP Acquisition and Rehabilitation Projects I met with Steve Klein and Pat McFarland on Thursday, August 4, 1994 regarding two multiple family acquisition and rehabilitation projects. ACCAP is requesting participation in at least one of the projects. The following describes each of the proposed projects and the amount of participation from the HRA. City Council involvement may also be necessary. 1. Acquisition and rehabilitation for: 5908 - 2 1/2 Street 5916 - 2 1/2 Street 6008 - 2nd Street ACCAP would like to purchase these three multiple family buildings, rehabilitate them, and own them for a "single room occupancy" program. The buildings on 2 1/2 Street have seven, one - bedroom units in each building. The building on 2nd Street is a four -plex. The intent of the "single room occupancy" program is to provide affordable housing for single individuals who are working at $6.00 - $8.00 per hour. Typically, persons with this wage rate cannot afford one - bedroom apartments in the private market at $450.00 per month. There is no typical age range for these individuals. Some are younger and starting out in the work place, and others are older and may have a limited disability, or have been recently divorced.. These individuals are those that are not typically served by the Section 8 housing program, since that program prioritizes the elderly, handicapped, and' family households. All three properties are currently for sale. The pro$erty at 6008 - 2 1/2 Street is vacant at this time. ACCAP monitors properties through the multiple listing service, the newspaper, and HUD lists. ACCAP sees this as a It ACCAP Acquisition August 4, 1994 Page 2 T opportunity to achieve one of their objectives (affordable housing), but at the same time, achieving a City objective to rehabilitate multiple family units in a priority neighborhood. The financing for this acquisition and rehabilitation would be financed through a combination of HOME, MHFA, and HRA funds. Total project costs are estimated as follows: Acquisition: - $130,000 (5908 - 2 1/2 Street) $130,000 (5916 - 2 1/2 Street) $98,000 (6008 - 2nd Street) $358,000 Rehabilitation: $180,000 (18 units at $10,000 per unit maximum) $538,000 GRAND TOTAL Anoka County would use $130,000 of its County HOME funds and apply for grant monies from MHFA. ACCAP would own and manage the building for 20 - 30 years. In order to provide affordable rents,*ACCAP does not want to retain a mortgage on the property. ACCAP is requesting that the City match the HOME fund contribution of $130,000. This represents about 24% of the project costs. They suggested that these funds be used for rehabilitation of the units. The funds would be secured by a mortgage with a "due on sale" clause requiring the funds be refunded to the HRA upon sale of the property (a deferred loan). Similar projects have been completed in the cities of Spring Lake Park and Columbia Heights. In Spring Lake Park,, the City allocated CDBG fund equalling 25% of the project. In Columbia Heights, the City did not provide any HRA assistance but did.agree that the property would be taxed on a "lease hold cooperative tax status ". In essence, this means that the property is taxed at the homestead level (1% 11A ACCAP Acquisition August 4, 1994 Page 3 versus the typical multiple family percentage rate). Columbia Heights did not assist this particular project because its priority was on the Sheffield neighborhood, and they wanted to prioritize their funds for that effort. ACCAP is. proposing that the Hyde Park units be taxed as a "cooperative" versus the typical tax rate for a multiple family building. Although the taxes generated would be less, ACCAP passes on the tax savings by using the money for rehabilitation costs. MHFA has an application deadline of August 26, 1994. ACCAP is requesting either a resolution from the HRA or a letter from the Executive Director supporting the project and agreeing to negotiate on a participation amount for rehabilitation costs. The letter should also address the tax issue. ACCAP indicated that they do not need a specific dollar amount at this time; however, as much detail as the HRA and City can provide strengthens the fundability of the application. 2. Acquisition and rehabilitation for: 6501 Channel Road 6513 Channel Road As is the case with the previous project, these properties are also for sale. The owner has indicated to ACCAP that he is willing to offer the property at a reduced price. Pat Wolfe advises me that these two four - plexes are good examples of "deferred maintenance ", but are not in as poor condition as the properties in Hyde Park. Also, seven out of the eight units contain Section 8 clients. ACCAP will be able to.support a mortgage with the Section 8 program clients. Each of the four - plexes contain three bedroom units. The three bedroom rents will also command an income stream which will also support a mortgage. ACCAP, in this situation, is seeking participation from the City as to whether it would participate in any of the rehabilitation costs. It is my estimation that these would be less than the rehabilitation costs in the Hyde Park area. 3. Policy recommendations. Each project represents a different type of housing problem. The buildings in Hyde Park-have been on and off the market for approximately nine months. In this case, the private market is not "stepping to the plate" to take on the rehabilitation and improvement costs. (A four -plex across the street from the 2 1/2 Street properties was recently purchased by Carolee Zinter.) The 11B ACCAP Acquisition August 4, 1994 Page 4 Channel Road properties represent a more viable project in the private market; but as Pat Wolfe notes, they could easily tip and continue the downward spiral of deferred maintenance. Each project serves two different populations. The Hyde Park area would serve the working poor who need affordable rents. They would enjoy the benefits of a "cooperative" and participate ACCAP's ongoing management of the building. Hopefully, this will breed ongoing interest in the property and reduce transients and turnover that would occur for a one - bedroom unit in the private market. The Channel Road properties are serving the larger family households with three - bedroom units. Upgrading the properties at this time will prevent further decline and avoid higher rehabilitation costs in the future. Although I have not had a chance to discuss this with you, I recommend that the HRA and.City Council consider the following: 1. At the August 11, 1994 HRA meeting, the HRA should pass -a motion to authorize the Executive Director to write a letter to ACCAP supporting the Hyde Park acquisition project and agree to enter into negotiations for a deferred loan for a maximum amount not to exceed $130,000. It is to be understood that the amount could be less, and is subject.to further review and approval by the HRA. 2. The City Council at its August 15, 1994 should consider a resolution supporting the Hyde Park acquisition project and agree to research whether or not the City will support the designation of the properties as a "leasehold cooperative" basis for tax purposes. 3. The HRA at the August 11, 1994 meeting would agree to authorize the Executive Director to enter into negotiations with ACCAP on the Channel Road properties to provide a second mortgage for rehabilitation purposes that would be a second mortgage and would be administered as any other typical multiple family rehabilitation loan that it makes in conjunction with the MHFA rental rehabilitation program (maximum of $2,000 per unit of rehabilitation). SUMMARY These two projects meet some of the policies and concepts that the HRA and City Council have discussed in the past. First, State and Federal dollars are used for at least 75a.of the . project costs. Local HRA dollars are therefore.leveraged. Secondly, ACCAP's ownership and management will help to stabilize tenant turnover in both areas and to improve the stability of the 11C Irz. r ACCAP Acquisition August 4, 1994 Page 5 neighborhood in general. Third, HRA money could.be recovered in the Channel Road project via a typical loan as is done with economic development loans. Although the funds for the Hyde Park area will not be returned for several years, an immediate impact to the neighborhood will be achieved at one time. Finally, ACCAP has a good track record with rehabilitation projects. These projects could be a model for other projects, either in the private sector or for future HRA projects. BD /dn M -94 -423 11 DI' r _ DATE: TO: FROM: SUBJECT: Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley August 4, 1994 William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator Proposed Changes to Home Mortgage Assistance Program Since we first offered this program last year, few people have applied for this program. Moreover, of those who have applied, most have dropped out. due to the factors which will be discussed in this memo. Background As you recall, this program is designed to assist people who want to do one of the following: 1. Buy a home and make repairs or improvements. 2. Refinance an existing mortgage and complete home improvements. 3. Buy a rental home and become the owner occupant. To help facilitate the transaction, the HRA provides a small subsidy in the form of a deferred loan to help with closing costs, part of the down payment and /or rehabilitation. The HRA loan accrues no interest and is deferred until the home is sold or refinanced. Problems Encountered As we began to process applications and move people through the pipeline, we began to discover that several program restrictions simply were not workable. 1. Minimum Home Rehabilitation Currently, we require a minimum amount of rehabilitation in order to process a loan. Part of the problem is that this threshold differs depending on which option a borrower selects. For example, if someone wants to buy a home at least $15,000 worth of 10 Home Mortgage Assistance Program August 4, 1994 Page 2 improvements are required. On the other hand, if refinancing a home at least ten percent of the new mortgage must be applied to rehabilitation. The minimum requirement not only treats borrowers differently but also makes the program cumbersome to administer. More importantly, several lenders and real estate agents have said that it is difficult to make $15,000 worth improvements and support the value in an appraisal. 2. Homeowner Labor or Sweat Equity Currently, all rehabilitation work must be done by a licensed contractor. United Mortgage, our lender, does not have any restrictions in this area; however, the homeowner must be able to demonstrate they have the experience and skills necessary to do the work. Fannie Mae requires the borrower to provide a contractor's estimate to ensure that there are sufficient funds to complete the work should the borrower be.unable to do so. However, Fannie Mae does not prevent the homeowner from doing the work. Prohibiting "sweat equity" was a major discussion point during our program development discussions two years ago. The Executive Director wants additional information as to: 1. - Other cities' experiences; and 2. What experience does a homeowner have to have to meet lender requirements. Proposed Chancres In order to make the program more attractive, we are proposing the following changes: 1. Establish a minimum of $5,000 worth of rehabilitation for both a home purchase and home refinance transaction. 2. Allow home labor or sweat equity. The borrower must have the skills to do the work, subject to lender approval. Staff will research the information requested by the Executive Director and present it to the HRA in September. 1 Home Mortgage Assistance Program August 4, 1994 Page 3 All other components of the program (i.e. income, mortgage and purchase price limits) will remain the same. Hopefully, with these changes and a favorable interest rate climate we will see greater demand. These changes do not apply to the other programs. Jim Casserly has recommended that we have the HRA officially approve the changes by resolution. Recommendation Staff recommends that the HRA move to adopt the attached resolution approving changes to the Fridley Home Mortgage Assistance Program subject to additional research and discussion of homeowner "sweat equity" at the September meeting. Staff will process applications regarding the $5,000 rehabilitation amount, but withhold action on sweat equity until September's meeting. If the HRA chooses not to allow sweat equity in September, the resolution will be amended accordingly. C: \wp \housing \mrtge.prg \changes GF/ M -94 -429 19 RESOLUTION NO. HRA - 1994 A RESOLUTION AUTHORIZING THE MODIFICATION OF THE FRIDLEY HOME MORTGAGE ASSISTANCE PROGRAM BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority "), as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority modify the Fridley HOME Mortgage Assistance Program (the "Program ") which has been established for the residents of the City of Fridley (the "City "). 1.02. It has been further proposed that the Authority enter into the necessary agreements to implement the modifications to the Program including the amendment of the Mortgage Origination Agreement (the "Origination Agreement ") with United Mortgage Corporation, or its transferee, Bank of America, FSB (the "Bank ") as participating lender. Section 2. History. 2.01 The Authority authorized the establishment of the Program by Resolution No. HRA 4 -1993 adopted at its meeting on July 8, 1993. 2.02. The Chairperson and the Executive Director of the Authority executed the Origination Agreement dated as of .December 1, 1993. 2.03. The Chairperson and the Executive Director executed a consent to transfer the rights and obligations under the Origination Agreement from United Mortgage Corporation to Bank of America, FSB. Section 3. Findings. 3.01. The Authority hereby finds that the Program will be most effective if the minimum amount of rehabilitation to qualify for a Refinancing /Rehabilitation Loan or an Acquisition /Rehabilitation Loan, as they are defined in the Origination Agreement, is not less than $5,000.00. IN t�� n Page 2 - Resolution No. HRA - 1994 3.02. The Authority hereby finds that the Program will be further enhanced if the borrower is allowed to complete the rehabilitation work subject to the approval of the Bank and as allowed by the Federal National Mortgage Association. 3.03. The Authority hereby finds that the adoption of the modifications to the Program promote the purposes of the Authority as those purposes are defined in Minnesota Statutes, Section 469.001, et sea. (the "Act"). Section 4. Authorization of Modifications to the Program. 4.01. The Authority hereby approves and adopts the modifications to the Program as described above. Section 5. Authorization for Execution of Amendments to the Origination Agreement and Revision by Supplemental Notice. 5.01. The Authority hereby approves Amendments to the Origination Agreement as described above and Revision by Supplemental Notice, as provided in the Origination Agreement, and authorizes its Chairperson and Executive Director to execute amendments to the Origination Agreement and Revision by Supplemental Notice on behalf of the Authority with such additions and modifications as those officers may deem desirable or necessary.as evidenced by"the execution thereof. 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 ;i Community Development Department i \ HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Authorization to Purchase 550 Hugo Street N.E. We have successfully negotiated the purchase of a fourth property under the scattered -site acquisition program. The property is located at 550 Hugo Street N.E. and is owned by Herbert M. Hansen of Minneapolis. The subject property consists of a single family structure approximately 700 square feet in area which is in very poor condition. The home °has been vacant for two years and is currently used for storage. If acquired, the lot could not be re -sold for construction of a new home. "It could, however, be combined with an adjacent lot to the east which we are also attempting to purchase. The property was appraised by McKinzie Metro Appraisal for $36,000 (Assessor's value: $37,100); however, the owner agreed to sell for $34,800. The purchase price is well within the HRA's negotiation guidelines. Photos of the site will be presented at the meeting. Recommendation Staff recommends that the HRA authorize the purchase of 550 Hugo Street N.E. from Herbert M. Hansen for $34,800 and authorize the Executive Director to execute a purchase agreement for said property. GF /dn M -94 -418 n 6rCommunity Development Department CD HOUSING AND RIDEVELOPMENT AIJTHOR,ITY City of Fridley TO: FROM: DATE: Housing and Redevelopment Authority Members William W. Bums, Executive July 20, 1994 Director of HRA,�_ �,. SUBJECT: Potential Funding for Moore Lake Apartments Project The City has been working with Moore Lake Apartments for several months to attempt to work out parking problems that are forcing apartment dwellers from those units to park on City streets. In general, we believe that it Is to the City's benefit, as well as to the apartment owners' benefit, to work with the owner of Moore Lake Apartments to identify solutions to the parking problems. One of the o_ wners of the apartment units, Dave Stewart, has.been contacting 1, nearby land owners to determine if portions `of property can be purchased °for expansion of parking. One of the landowners is the City of Fridley which owns 5720 Polk Street, a vacant lot located immediately adjacent to the Moore Lake Apartments. Other owners include, Uno -Vert, the owner of the Union 76 gas station; and Mr. Bob Gilstad. At the present time, neither Uno-Ven. nor. Mr. Gilstad seem to be willing to sell to Mr. Stewart a piece of their property for parking expansion. Mr. Gilstad will make available an easement that would allow Mr. Stewart to move the Moore Lake Apartments fence in for the purpose of pushing snow from the parking lot. This leaves the City property which is a large lot that contains 17,087 square feet. Mr. Stewart is requesting that the City sell to him a piece of land that is 35 feet by 163 feet long (5,705 square feet). This would still leave a sizeable piece of property for the construction of a single family dwelling. We met with Mr. Stewart on Tuesday, July 19, 1994, and during our meeting we identified costs of approximately $31,500 for constructing the parking lot, not including the cost for acquiring the City's property. 3 Moore Lake Apartments Project July 20, 1994 Page 2 Mr. Stewart indicated that he is having difficulty financing that amount, and is asking for help from the Fridley HRA. In view of his request, I would like to suggest the following agreement with Mr. Stewart: 1. The City agrees to sell a strip of property necessary for expansion of parking to Mr. Stewart for $5,000. 2. The Fridley HRA agrees to loan the Moore Lake Apartments the sum of $10,000 for total projects costs. The loan would be repayable over a ten -year period, with principal and interest payments being deferred for two years. Mr. Stewart thinks this help will be significant and will enable him to proceed with the project At this time, we are recommending that the HRA concur -with the terms of this agreement and that it authorize staff to formalize-the agreement for consideration at the next HRA meeting. Thank you for your consideration of this matter. WWB: sc 3A ti G i r � Community Development Department PLANNING DIVISION City of Fridley DATE: July 28, 1994 TO: ' William Burns, City Manager / FROM: V Barbara Dacy, Community Development Director Scott Hickok, Planning Coordinator SUBJECT: ::Moore• =Lake 'Apartbints Parking .Expansion _ <•: Councilmember Billings asked staff to'prepare a map-of the Moore Lake Apartment complex,.includirig the potential expansion area on the City -owned property to the north. Staff met with David Stewart of Paragon Real Estate, who represents Moore Lake ".Apartments.­The discussion centered on the potential expansion'of the parking-area through.a purchase of.a portion of the City -owned lot north of the existing parking area. Stewart mentioned that =he has plans not only for =,the City -owned Parcel but also for the property.owned by Mr. Gilsted... In preliminary discussions with Gilsted, Stewart-determined-that Gilsted would be interested in an easement, allowing Stewart to improve the parking area and provide for snow storage in the winter months. This easement area would not, however, be used for additional parking spaces. As.part of the Stewart/Gilsted negotiations, Gilsted is interested in having Stewart pursue a rezoning of the Gilsted property from its current C -1 zoning classification to an R -1 zoning classification. The proposal that Stewart -discussed.with staff would not only require a.rezoning of the Gilsted-parcel but would also-require a plat or a lot split to subdivide the City - owned parcel. As you can see from the attached map, a subdivision or lot split would leave the-City with a 77' x 140' lot. This lot would be comparable to the other residential lots in the neighborhood. As a result, staff believes that the lot split could take place without detrimentally affecting the salability of that lot for a single family home. Discussing this matter with Randy Kurth of Kurth Surveying,', it is understood that Kurth will approach Anoka County as to whether they would approve a lot split despite the fact that this property is Torrens. Kurth felt confident that we would be able Moore Lake Apartments Parking Expansion July 28, 1994 Page 2 to accomplish this with a lot split rather than a replat. If so, this would save us a great deal of time. A special use permit in accordance with Section 205.09.01.C.6 would also be required for parking expansion on an adjacent site. Finally, a number of variances would be required, in order to allow parking along Polk Street to come within 20 feet of the right -of -way as opposed to 35 feet as required by code. Stewart also indicated that although he is going to be reworking the asphalt in the entire parking area as well as the new expansion . , . area, - he .was, n_ of •interested • ini •curbing tke .perimeter :-of the parking -.lot. A •variance would be -required if Stewart - was= -to deviate from.-the curbing requirement. To recap, the attached: parking plan will provide additional parking (87 total spaces), snow storage area, and a new dumpster location. Staff believes this solution may the best alternative considering the lack of interest of Gilsted or Union 76 to sell the-land required for additional parking. expansion. We will continue to update. you as this plan -and negotiations for purchase of the required City parcel move ahead. Please let me.know if you have any - questions or wish to discuss this matter further. y SH /dn M -94 -402 3C! N K - '.s Casserly_ Molzahn & Associates, Inc. 215 South 11th Street Suite 300 o Minneapolis • Minnesota 55403 Office (612) 342 -2277 • Fax (612) 3344 -3382 M E M O R A R p U M TO: Fridley HRA FROM: James R. Casserly Many E. Molzahn DATE: August 2, 1994 RE: Moore Lake Apartment Project Moore Lake Apartments needs some additional land for parking. To assist with the parking problems, the City is considering the sale of approximately 5,700.square feet of land which it currently owns and which is adjacent.to the Moore Lake Apartments. The City land sale would be in the amount of $5,000. in addition, to facilitate the Construction of the parking treatments, the HRA is being asked to loan the Vropertikowner, Paragon, the sum of $10,000. Paragon would execute a note and a mortgage in the property to'secure the note. If appropriate, we would also obtain a guarantee. The attached schedule for the note has no payments being made until August of 1996. Interest would accrue and would�be added to the principal. The note would then be amortized over then remaining eight years at $779 to be paid semi - annually with the last payment_in August of 2004. -The interest on the note is at a rate of 51% per annum. The note.terms are similar to other arrangements the HRA has made in the past. if there are any questions, please give us a call. s 1 =1 z r76.2o snu zad zsz D 36 Z822 A-1zEsSSSa Z8££ b££ ZZ9 CITY OF FRIDLEY, MINNESOTA MOORE LAKE APARTMENTS BEGINNING DEFERRED PRINCIPAL - - -- ------------------------- INTEREST TOTAL ENDING DATE BALANCE -- INTEREST PAYMENT PAYMENT PAYMENT BALANCE 10 j 1994 ------------------------------------------------- -10,000 0 0 0 - - - 0 - - -- 10,000 2 / 1995 10,000 167 0 0 0 10,167 _8 / 1995 10,167 254 0 0 0 10,421 2 1 1996 10,421 261 0 0 0 10,681 8 / 1996 10,681 512 267 779 10,169 2 f 1997 10,169 525 254 779 9,645 8 / 1997 9,645 538 241 779 9,107 2 / 1998 9,107 551 228 779 8,556 8 / 1998 8,556 565 214 779 7,990 2 / 1999 7,990 579 200 779 7,411 8 / 1999 7,411 594 185 779 6,818 2 / 2000 6,818 609 170 779 6,209 8 J 2000 6,209 624 155 779 5,585 2 / 2001 5,585 639 140 779 4,946 8 / 2001 4,946 655 124 779 4,291 2 / 2002 4,291 672 107 779 3,619 8 / 2002 3,619 688 90 779 2,930 2 J 2003. 2,930 706 73 779 2,225 8 / 2003 2,225 723 56 779 1,501 2 J 2004 1,501 741 38 779 760 8 / 2004 760 760 19 779 (0) -w r r r rr -- ------------------- - - - --- ------------------- --- - -- - ---- -------- -` -- -- 681 10,681 2,561 13,242 -•-•-== �c�oacccccccosc�aasas= aanaacCC�cocasx� .r.�===--------- .�cocxcx� = = -- LOAN CLOSING DATE 10/01/1994 FIRST PAYMENT DATE 8/01/1996 _ FINAL PAYMENT DATE 8/01/2004 PRINCIPAL 10,000 INTEREST RATE 5.00% TERM 9 YEARS /10 MONTHS MOORE1 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES, INC. 26- Jul -94 Z T= 60 17 6 a 20 J" I u 20 CA 0SZ ' -lOW A- lZ13SSljO Z8C-1 � -t72-Z T 9 3E Z822 b££ ZT9 HILLWIND Ram TO: FRIDLEY H.RA FROM: CITY OF FRIDLEY RE- BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES JUNE 1994 OPERATING EXPENSES: PHOTO-CAM - PHOTOS Account Ws for Account Ws for 236-0000-336-3000 HRA's Use City's Use ADMINISTRATIVE BILLING: 236-0000-336-3000 US WEST - TELEPHONE TELEPHONE SERVICE ADMINISTRATIVE PERSONAL SERVICES 14,687.00 101-0000 -341-1200 ADMINISTRATIVE OVERHEAD 103.00 101-0000-336-3000 COMPUTER OVERHEAD 194.00 101-0000-336-3000 (For MWo & Mimi compubn) TOTAL ADMINISTRATIVE BILLING: 460-0000-430-4107 OPERATING EXPENSES: PHOTO-CAM - PHOTOS 460-0000 -430-4221 11-18 236-0000-336-3000 NORTH MEMORIAL MEDICAL - FITNESS* 262-0000-430-4330 38-50 236-0000-336-3000 US WEST - TELEPHONE TELEPHONE SERVICE 262-0000-430-4332 14.16 236-0000-336-3000 NYSTROM PUBLISHING - SUMMER NEWSLETTER 460-0000-430-4334 770.75 236-0000 336-3000 TOTAL OPERATING EXPENSES: 534.59 BENEFITS EXPENSES: CITY OF FRIDLEY — HEALTH INS CITY OF FRIDLEY — DENTAL INS CITY OF FRIDLEY — LIFE INS 262-0000-219-1002 262-0000-219-1100 262--0000 -219-1200 TOTAL BENEFITS EXPENSES: TOTAL EXPENDITURES — Fk:%12WATAHRAXTlFWLUNG.Wkl Ddeft a JUNE 1994 0.00 236-0000-219-1002 0.00 236-0000-219-1100 0.00 236-0000-219-1200 0.00 0 P . IN agm: aIN. W A. 21 . C9 F Z OC . F . W . OC . U : U . a . : v . W O . a : : • • . W �$g dw . OG Q LU °a CJ � U . �- .. •n.. Y . ppW U Co . m8 W W CC J . J x W . co U . Z W . E0 �aa : : F . W . z . a. O O N W . �Ot C : F LU P OC . p c P ca w R a . O uj tiny : WZ . OG x . W >- p� W a�o� OC OC OC . O. 0.•- . y w d r d'pYpYpYNi- m m m F O JC7 C7 C7F W .Z...a..Z.. � m Z 6�OC OC 30 Ncco MM 00000 F J W 0 0 0 0 0 Z W Q 00NI� I-_ OO �P �M�f MinO tiu: r'em Ln N 0 0 •O S 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 F J 0 0 0 0 0 0 Z W Q CD In C2 UN 00 p0 cm Im N cm ��Npp yapp�C! M M M O o �MFM 0 0 0 0 0 0 0000040 xxx M O M O O U U U M M O M O O F F F m In •O .O Ilmn 0 NN It NIT O asys.ts P P P P P P I`O O O;; cm ra —ANN 109' G W N 41 W O oe n H Z O F U Im H z' C, �O y r _a TO: FRIDLEY H.RA FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES JULY 1994 ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES ADMINISTRATIVE OVERHEAD COMPUTER OVERHEAD (For Micro S Miml oamputem) TOTAL ADMINISTRATIVE BILLING: OPERATING EXPENSES: POSTAGE 13Y PHONE COPIER ALLOCATION JAN - JUNE POSTAGE BY PHONE AT&T LONG DISTANCE US WEST - TELEPHONE SERVICE COPIER ALLOCATION JAW - JUNE BURNET REALTY - BACON EARNEST MONEY RITZ CAMERA- FILM Account #'s for HRA's Use 460 -0000 -430. -4107 262 -0000- 430 -4332 262- 0000 -430 -4335 460 -0000- 430 -4332 460 -0000- 430 -4332 460 -0000- 430 -4332 460 -0000- 430 -4335 460 -0000- 430 -4510 450- 0000 - 430 -4221 TOTAL OPERATING EXPENSES: BENEFITS EXPENSES: CITY OF FRIDLEY - JULY & AUG HEALTH INS 262 -0000- 219 -1002 CITY OF FRIDLEY - JULY & AUG DENTAL INS 262 -0000- 219 -1100 CITY OF FRIDLEY - JULY LIFE INS 262 -0000- 219 -1200 TOTAL BENEFITS EXPENSES: TOTAL EXPENDITURES - Fft :1123DATmHRAxnF1BIWNQwM Dekk JULY 1994 14,687.00 103.00 194.00 14.984.00 Account #'s for City's Use 101 -0000 -341 -1200 101 -0000- 336 -3000 101 - 0000 - 336 -3000 138.06 236- 0000 -398 -3000 104.97 236- 0000 -336 -WW 21.46 236- 0000 - 336 -3000 0.73 236- 0000 -336 -3000 13.35 236 -0000- 336 -3000 128.30 236-WW-336-3000 1,000.00 236- 0000 -336 -3000 4.98 236 - 0000 - 336 -3000 1.411.85 351.80 236 -0000- 219 -1002 41.06 236 -0000- 219 -1100 4.25 236 -0000- 219 -1200 397.11 0 P 1 1 \ 1 1 O 1 1 p 1 1 CW7 Q •�• CO 1 1 d W LU 1 1 1 1 1 1 a r 1 2 ce 1 1 r a 1 1 W 1 1 cc 1 1 Q 1 1 1 1 r . 1 W / I 1 1 cc 1 / 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 / 1 1 1 1 1 / 1 1 1 1 1 1 1 1 1 OC 1 / IW— w 1 1 1 / FW— C7 i i Q •+ 1 / 1 1 1 1 n � 1 Y.W 1 su 0 CA mg t W W 1 1 K J 1 1 J 1 1 S W 1 1 1 1 i &U r i 1 Z W 1 1 1 1 V Z 1 1 Q 1 1 1 1 1 1 - 1 1 1 1 / 1 1 1 1 ; 1 1 r . 1 Z 1 1 W 1 1 1 1 o. 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LCH •H L •HZLC<EWWLieZZZZZHL1ux4XWO idC U TaEHEZLLI--IE3Cffiupts#LtiHNHHHJ �L!- otTatriMt- Q�' �sT' Q' Q' �t�f'• 7' Q' Q< Y' Q 'Qet�tQ�V'QQ�tcf�Y�tCQ'V'�tQQ'C (11 Pt FPPPPPPPPPPPPPPPPPPPPPPPPPPPPP \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \\ .+C<fiI7PPPP0.0 7000)l nl1m' 1 Inv) U761mlVim7lnm7tni�m7ftlm7m7.m3 aNtvNCaNNOa0000000000000a000L�00 M1f- NP- NNN\ NI-N (OMMmtDWMCDGDa)W MOD mWO\DmMmmWm a� J C a t- w a z C L H Q Via;• Date: August 11, 1994 To: HRA Commission Members From: Craig Ellestad, Accountant Subject: Additional Expenses Needing Approval VENDOR Appraisal Engineering Appraisal Engineering Buma,Guzy & Steffen Buma,Guzy & Steffen TA Bullseye Tree Service Casserly Law Office Demars Signs Grant Femelius Kurth Surveying Liesch Associates, Inc MILE Renner & Sons DESCRIPTION AMOUNT Appraisal of 677 Hugo St NE $300.00 Appraisal of 683 Glencoe St NE $300.00 July Legal $2,506.75 Acquisition of 550 Hugo ST NE $34,800.00 Work done at 187 Longfellow St NE $292.80 July Legal $4,253.75 Signs at Lakepointe — 2nd half payment $1,645.00 Reimbursement $55.15 Lot Survey of 8280 East River Road $350.00 July Services — Bacon's & Gary's $2,031.68 TIF Seminar $195.00 Capping well at 8280 East River Road $378.52 C] Community Development Department D HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Housing Program Update Housing Rehabilitation We have prepared the attached summary of housing rehabilitation. activity for July. The report also.includes figures for year -to -date activity. Some of the numbers may be.confusing, especially with. regard to the total applications approved and denied. For example, in the Home Mortgage Assistance Program, a total of five applications have been received.so far this year, two were denied and three-are still in process with United Mortgage. - The CDBG grant program is very successful in terms of,number..s of applications and the amount of households who are receiving grants. Interest in the loan program is increasing; hopefully, interest in the changes we are contemplating will help to increase those numbers. Scattered -Site Acquisition To -date, three homes have been acquired and a fourth isin process. Two additional properties are being appraised and could be acquired sometime in August. Staff is continuing to work with the Engineering Department to get estimates for demolishing the homes we purchased. Tentatively, we plan to start demolition on August 22, 1994. A summary of this program is attached for your review. Minnesota Cities Participation Program We have added Directors Mortgage Doan Corporation to our list-of approved lenders. Directors Mortgage,-which has four offices in the Metro area, is the 15th largest mortgage lender in the Country. We now have seven lenders approved to process loans. Marquette Bank Brookdale has indicated that they have.closed, five mortgages under the 1993 program for a total of $360,520. With continued marketing, we should use our entire allocation of 1994 funds ($750,000). GF /dn M -94 -417 IL pL� O tom. �a s N M M N N W A 1 N N N M Al P co O 5A N Ln 40 p O G! L 4 M O M M IN EEE � U C2 40 O N fa 10 M F 7a N M N W M N N O ca H Y O i+ cm C .r y C 7 in O O O co r N CO C3 �C. a Q N N O O 7 CO IA O t/1 H N M � u d (Q1 oe Q N M o 0 _A 7 Ln 10 tq 1 M O � i+ V M 7 tC O Q O 7 E M {+ a L C C p1 E E L t O L NOd 0 L. 8. 01 o &, V L c d dw o cl) .,« .,a z 4 L. as ° cm o aa0o acr o CL xc9 =-j xQ a...+ N M M N N W A 1 N N N M Al P co O 5A N Scattered Site Acquisition Program Parcel List and Activity summary Parcels Owned Address 187 Longfellow St. NE 8280 East River Rd. 6409 East River Rd. 550 Hugo St. NE * Pending approval by HRA. Parcels Under Consideration 683 Glencoe St. NE 677 Hugo St. NE Date Acquired 24 Apr 94 24 Jun 94 21 Jul 94 Aug 94 Totals =0 Purchase Price $31,320 $48,000 $41,000 $34,800 $155,120 Buildable Lot Yes Yes Yes No a° 0 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY DATE: August 4, 1994 City of Fridley TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Lake Pointe Marketing A variety of activities are occurring regarding marketing the Lake Pointe property: 1. Signs. The signs were installed on the property on Thursday, July 28, 1994. We are now evaluating whether illumination of the sign on Highway 65 is prudent. I will be observing the signs during the evening hours to see if the ambient light from the highway lights sufficiently lights the sign such that it can be read by passing. traffic. In the meantime, Merrill Busch asked an electrical contractor to contact NSP to determine what the cost would be to illuminate the signs. The cost for lighting the Highway 65 sign is $3,177.14. The cost for the I -694 sign is $5,722.86. The I -694 sign is more expensive because an underground conduit is necessary from Highway 65 (about 2,000 feet). Jon Thompson is also concerned about the impact on the underground`irrigation in this area. Merrill Busch and I recommend that because of the cost and impact to the property,.just the Highway 65 /Central Avenue sign be illuminated. Prior to expending this money, however, I would like to see if the signs could be read with the existing lighting along Highway 65 during the evening hours. 2. Magazine advertisements. Merrill Busch has prepared half - page, four color ads to be presented in the September issue of Twin Cities Business Monthly, one of the August issues of the Minnesota Real Estate Journal, and the September commercial real estate issue of Corporate Report. I will bring a copy of the "mock -up" to the HRA meeting. Update on Lake Pointe Marketing August 4, 1994 Page 2 3. Mailing List. Merrill Busch has prepared a mailing list to 310 commercial brokers and realtors in the Metro area. A cover letter for the marketing brochure will be sent to all persons on the mailing list. The cover letter will be signed by Larry Commers and Mayor Nee. Merrill Busch has finalized two additional inserts into the brochure regarding the City's financial stability and recreational resources. Again, copies of the proofs will be brought to the August 11, 1994 meeting. 4. Jim Stuebner. Bill Burns, Jim Casserly, and I met with Jim Stuebner of Five Star Realty and Development Company on Wednesday, July 27, 1994. Stuebner is interested in acting as a potential consultant to.the HRA to market.the Lake Pointe property. Stuebner is also a developer (he developed Northland Park, the 400 acre business park in Brooklyn Park). Bill Burns asked Mr. Stuebner to specify his marketing strategy and how he would work with Busch. Stuebner strongly believed that he could attract a user from out of state using his national NAIOP contacts. No commitments were made at our meeting with Mr. Stuebner. We discussed his project in Brooklyn Park at length as well as his experience in other communities. We also explained the HRA's.strategy for marketing of the site. 5. Tharaldson Development Company. I also had a contact from the Director of Real Estate of Tharaldson Development Company. This development company is a developer for a variety of hotels, including the Mariott Inn and Comfort Inn. He requested specific site information for the area immediately adjacent to Highway 65. I sent him a copy of our brochure as well as some of our previous grading and utility plans for the site. Merrill Busch is also proposing to send out a reminder post card to persons on the mailing list in October. Also, he is suggesting that a "tabloid" newsletter be used to update people on the mailing list regarding issues pertaining to the site. Examples of these two approaches will also be brought to the meeting. BD /dn M -94 -421 r _ i Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Dairy Queen Relocation Don Fitch has confirmed that he will cease operation at the Mississippi Street Dairy Queen on Sunday, August 21, 1994. Fitch will pay rent through August 21, 1994. In the meantime, a permit has been issued for Fitch to remodel - the former Marquette Bank building on Osborne Road. Fitch hopes to open the new Dairy Queen on September 1, 1994. Unless otherwise directed, staff will proceed to solicit quotes for the demolition of the Dairy Queen building.and schedule approval of the successful bidder at an upcoming-HRA meeting. BD /dn M -94 -419 7 AW r � Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Fridley Town Square Project On August 2, 1994, I contacted Lowell Wagner regarding the status of the redevelopment project. Wagner stated that he is still seeking a replacement tenant for Walgreens. He is still interested in the project and will pursue it as long as Norma Swanson continues to cooperate. At this point, Wagner and Swanson just have a verbal agreement to cooperate. Wagner does have formal agreements with the two property owners of the single family homes to the east. Wagner indicated that he still has a number of smaller tenants interested in the building, but he needs a larger replacement tenant for Walgreens. Wagner is also confident that heIcan obtain the appropriate financing from financial institutions once a suitable tenant is found. The property is zoned S -2, Redevelopment District. The district permits the City and the HRA to monitor the types of uses occurring in the existing building to determine if they are consistent with the "redevelopment objectives" of the City. Swanson has been advised of this procedure and we are, to -date, working well together regarding temporary tenants occupying the building. No action is needed by the HRA on this issue. We will continue to provide updates. BD /dn M -94 -420 2 r w Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Gunderson Property;-5705 West Moore Lake Drive N.E. Ms. Sadie Gunderson contacted me on July 12, 1994 inquiring about the HRA's interest to purchase her property. As you are aware, the City has a purchase agreement with Ms. Gunderson that is valid until October 31, 1994. The original purchase price in the purchase.agreement executed by Wier and Ms. Gunderson in November of 1986 was $94,500. Approximately $6,000 has been paid to- date. This leaves a remainder of $88,500. The purchase agreement indicated -t'hat approximately $2,000 was for moving and relocation.expenses. The Assessor indicates that the estimated current market'.valTue is $79,600 (the City's assessed value is $73,200). Acquisition of the Gunderson property was required in order to complete the intersection improvements at West Moore Lake Drive and Highway 65 as well as to satisfy a requirement of the MPCA Indirect Source Permit. Should the HRA desire to proceed with the acquisition of the property, we should try to acquire the property and close as soon as possible so that Ms. Gunderson does not have to move in the middle of the winter, and to avoid an ownership /lease -back arrangement. Ms. Gunderson indicated that she is asking for $88,500. As was done in the Hedman sale, it may be prudent to try to negotiate an acquisition cost which better reflects the value of the property. Ms. Gunderson indicated that she purchase agreement another year; move as soon as possible. BD /dn M -94 -422 may be willing to extend the however, she would prefer to 5 1_ • vF J 9A�e: a a° 0 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY DATE: August 4, 1994 City of Fridley TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Demolition of Scattered -Site Properties The Executive Director authorized staff to proceed with obtaining quotes for demolition of the scattered -site properties at 6409 East River Road and 187 Longfellow Street. The Fire Department also burned the house at 8280 East River Road. The.attached memorandum from Clyde Moravetz indicates that Veit and Company, Inc., has provided the lowest bid of-$16,039. Unless otherwise directed, staff will execute the appropriate contracts with Veit and Company, Inc. for the amount indicated. (The Engineering Department has advised us that quotes versus formal bidding is acceptable if the project cost is below $25,000.). The HRA should also be aware that the property at 8280 East River Road experienced a. significant amount of damage, or."scavenging ", prior to the demolition by the Fire Department. We believe a relative of the previous owner removed the garage door, fence, and other items from the house. The building was left unsecured and the property was littered with debris. However, we have no proof to support our suspicion. Scavenging at 187 Longfellow Street also occurred. Unless otherwise directed, staff will arrange to demolish the building within days of the acquisition to avoid vandalism and scavenging. BD /dn M -94 -424 10 Engineeri ng Sewer Y.'aler Parks Streets Maintenances MEMORANDUM TO: William W. Bums, City Manager PW94-269 FROM: John G. Flora, Public Works Director CIOClyde V. Moravetz, Engineering Assistant DATE: August 1, 1994 SUBJECT: Project No. 271 Demolition Quotes (HRA) The written quotes for project No. 271 (Demolition of Houses at 6409 and 8280 East River Road and 187 Longfellow) were due today. We received two quotes and they are as follows: (See attached) 1. Veit and Company, Inc .............. $16,039 2. Herbst & Sons Construction Co., Inc.... $17,680 The low bid is Veit and Company, Inc. who also provided a bid bond of 5 1%. (Also attached) Veit has indicated they will work with E. H. Renner & Sons in capping the wells as required by the State. Recommend awarding demolition project to Veit and Company, Inc. *for., the amount of $16,039 with work commencing after August 15 and seeding, mulching commencing after. September 15 with completion by September 30. CVM /JGF:cz Attachments 10A e. :,� . i DEMOLITION PROJECT No. 277 187 LONGFELLOW. 6109 &. 8280 EAST RIVER ROAD � � BID FOR PROJECT NO. 268 DEMOLITION OF STRUCTURES AT 187 LONGFELLOW AND 6409 AND 8280 EAST RIVER ROAD FRIDLEY, MINNESOTA 55432 Class of Work: Building demolition and disposal, light grading, seeding, sodding, partial bituminous driveway removal and concrete removal and disposal. Proposal of. /�; r ,,., p n Name z City 5637 Zip Code To furnish and deliver all materials and to do and perform all work, in accordance with the Contract and Specifications on file in the office of the Public Works Director and the "Special Provisions" contained herein for. 1. Demolition and disposal of the entire buildings, debris and all contents, including outside stored , materials, located at 187 Longfellow and 6409 and 8280 East .River Road, Fridley, MN. 2. The removal and disposal of driveways and all concrete slabs located within 'the parcels mentioned above. Garage -at 8280 East River Road to be. moved from site by others. 6409 East River Road. has full basement which requires foundation removal and properAl and compaction. 3. Fill material, grading, topsoil, mulch and seed or sod after demolition of structures, concrete slabs, and bituminous driveways. 4. Preserve trees in existing condition where at all possible. 5. Work with City hired contractor to expose well locations in order to cap and seal. Lump Sum Bid $ Lump Sum Bid $ (Figures) Signed: 20 DEMOLITION PROJECT NO. 271 187 LONGFELLOW. 6409 & 8280 EAST RIVER ROAD �y BID FOR PROJECT NO. 268 DEMOLITION OF STRUCTURES AT 187 LONGFELLOW AND 6409 AND 8280 EAST RIVER ROAD FRIDLEY, MINNESOTA 55432 Class of Work: Building demolition and disposal, light grading, seeding, sodding, partial bituminous driveway removal and concrete removal and disposal. Proposal of. HERBST & SONS CONST. CO., INC. Name 9999 Cn_ Rd_ H_ Street Address New Brighton, Minnesota 55112 City State .Tap Code To furnish and deliver all materials and to do and -perform all work, in accordance with the Contract and Specifications on file in the office of the Public Works Director and the 'Special Provisions" contained herein for . 1. Demolition and disposal of the entire buildings, debris and all contents, including outside stored materials, located at 187 Longfellow and 6409 'and 8280 East River Road, Fridley, MN. 2_ The removal and disposal of driveways and all concrete. slabs located within the parcels mentioned above. Garage at 8280 East River Road to be moved from site by others. 6409 East River Road has full basement which requires foundation removal and proper fill and compaction. 3. Fill material-, grading, topsoil, mulch and. seed or sod .after demolition of structures, concrete slabs, and bituminous driveways. , 4. Preserve trees in existing condition where at all possible. 5. Work with City hired contractor to expose well locations in order to cap and seal. Lump Sum Bid $ 17,680.00 CO�•c• k. (Figures) Lump Sum Bid $ RRVFNTEEN THOUSAND SIX HTTNDRED EIGHTY DOLLARS (Words) Signed: L,*� AM-AL4 1_iez 20 106 Yz THE AMERICAN INSTITUTE pFARCHITECTS. Ala Document M to Bid Bork[ KNOW ALL MEN BY 1145E PRESENTS, that we Veit & Company, Inc. Rogers, MN as Principal, hereinafter call the Principal, and Merchants Bonding Company (mutual) a corporation duly organized under the jaws of the state of Iowa as Surety, hereinafter calied.the Surety, are held and firm y bound unto City Of Fridley, MN as Obligee, hereinafter called the ObUgt e, in the sum of V;LV- a Peioent (5%) Of Atnovint Hid Dollars (S 5% ), for the payment of which sutra well. and truly to be made, the said Principal and the said Surety, bind ourselves, our helm, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, the Principal has submitted a bid far Demolition Of 187 Longfellow, 6409 e 8280 East -River Road, Fridley; MN if the Oblitme shall and faith Cor;U6 t with aj otherwise to remain Signed and sea o give 6ucn cono or I seen the amount spen ther �a'nY to perform full sorce arts effect. N _ istr (w,tneas) (Witness) e bid of the Principal andthe hindpd shalt enter into a Contract with bid, a nd such bond orbaeds as beapecified in the bidding or rety for tFie faithful performance of sur Contract and for tits pto ►pt prec„tion thereat or in the �wcnt of tt�e (allure o1 the i�rinNpaf to. kristehid's Preno ergy sa dd, th n this o5I gat lfor, shell beenumli and "vo #d, day of August 1994 Veit & Compa y, Iriql- V z4ta4 (3620 B--'av4-2X-jL- MOM Me rS,, ondinq Company (ikltitiaal )' Attorney —In —Fact AIA DOCU.VJWA310 • arp BOND • ArA« r FESRUARV 1VOW. 0 THE AMERICAN rN5TiTLrfE vFARCHJTECTS, 3735 N.Y. AVE., N.W., WASHINGTON. D.C, 20006 10D STATE OF COUNTY of •— on thin day of came before }Ie personally sump Vernon who executed the i'aregoing bolt , and eavhteevernlly ack owledgedthe thy+ same to be his Own free get and deed, Notary Publ c STAts OF MYNNESOT,A COUNTY OF RAMSEY On this__Ajk�day at day wisbet befOzs me appeared � . to me Personally known ,who, being duly $worn, did atey that he is the Attormsy -in -rant of the - b=CHANTS DONDIN'Q CoMpANV I&M.—xv k that the seal, sfti.1ted to the foregoing i.ustrument is the corporate seal of "'d corporation; that said instrument was sicined and sealed on behalf of sg3.d corp8ratioz� by.' of its gcard og -Directors, and said Ja Nissb ®t act it i acknowledged Paid natrumsant to. be th* tree Lion. 1A1sUVr1f LYNN BURKB tlTARAMW COW41y }r 1Kr avmaaa�an.x .9. Notary ub1 i gC10D D M TNT dF PRT1JrTbir STATE op� FOR- 09HPOPATim COUNTY OF On this lot day of. August cam 19 99 ,, befOr$ It® -personally p d to me known, who, being by me duly Aworn, did dapome and say; that he resides in that he is the -7 of the Veit & Co an , Inc the corporation described in anal which exedutcd the above instrument; that in knows th® seal of sao. corporation; that the seal affixed to said instrument ie such cerporats seal; that itj wee no affixed Sa>Ard of Directers oi' said corpoxation�;'arid by order Qf the by like order. that hie ssi ed pip ��� name; thereto 0 a STEPHEN I CROTEAU VA NOTARY PUBIIC � -#AtNM5r •` t; � �1 HENWIN COUNTY My COMMissiOn expirrs 3-29 -97 1 0E L. Merchants Bondi ng Company POWER OF ATTORNEY know Alt Man w These Presents, afar the N4F.RQ111tNTS BCNDINQ CaV1PANY ufu a corporation duly ot0a►dred ands{ tfto tawrs of the f3sets of laws, end ha4N1p its prin*W oftlrse 14 the city of Des M*W9, Counfy of , state ar to+Ma. lusft made. eonaWuted ana appointed, and dose by t? "pr MU M3", oortetlrure and oopdM , Litton $. S. Field, Litton $. S. Field, Jr., X. A. Jones, Jaty N16bet or F. 1. Y.arsaaat C" of Saint Paul and suthortty hereby ocnWad In ae �, !' a d� joe� eel, adam�MedpoWul d�o>rw�or�tn 4vba h A AW or all bonds or =d"TAkftgs provided that no bond or unddtrtakhW eaec'I"4 na8er ate authority ehai U exceed in =auut t:he soot of 7. n MILLION FM HtmiD M =US= 02,500.000.Ot)) nolturs end t0 bind the MERCi jAKrs SONMG C0MpAr (W4 ftNW ars fu�lyand to the same eftnt es g s'h t7prlr] orts artaidrrp runs bi(med by ttfe duly authorized oftlwe of Uto mr-ERCHANTS BON139 4 COMPANY (MukmQ, and sit the ass of said Anti{ M pursuant to the Wut fik herein 810e114 are hardby rutift *VW . 4 M ROHANNTSBONDINQC.OMM � tamA any dYatfhatoHcwlnpBytawsado dbythoeoardoibaaatareof ATICL to ssCTfON A. — i ha Chatrtttat of the board or Prasidert a t any tea fsMxWvnt or Secretary ahan have pMw and -Farb, and is euihorfze them to 0 ort hefwP► of . Contpatny, rand oewh the sM of the �pany eto.batdaan VAdebK and to a hofte e.......,..Nwb an •__a_.._ - A nME�A SECTION S. —Ttm& 4ftaAotaryyWWjWda= ndfheStlaf the0empsny s�bomtixodby atp IaorneyorCatlanttlg tfyaBan arid delivery clam y bond, tmdatdc remgnfZe erg sWQW Mpcbllpadoneolshe alrgrtetuteandaealvtmtWuaadWWhawrmSamefoioeandAlllmtasthattgh mahttatly fixed, Preatd it " , MERCHANTS BOMING COMPANY (MUWaq W fttsed Ifase ptsWN to be fused by ns Visa Pro -SK" eAd rpQMQ sed to ba hetwto , tldat 209 day of App, A Q,19 94 Attest MERCHANTS SONDINa Cgty "y (Mtsuaq • � .•fit: M.: �. a1At4s ve WYYA COUNTY OF POLK a do this 20th day April to 94 ,baron me ViUt. &nrtdsgo, to ma Peravnefty krtarm, who being by me duly mm qld °�°i °d M J Long arid r�pectlr+ety of the MSRCHMM $ANIJINO `AMP �Y Htdt {hey are Yes PPW94nt and SeCrutaryff nurar W? 0d i affltted to the $aid'fWAlmant M tho Cerpo►�g �� �dt Co thm I veld ir�istra�imeM was qnd seelbd in behalf o! Said Corpolatlon by put%4 ity of in 80ard of Otre ra ku&um*ft WW ow B 1n 7bstlniony Whaxsofi l haw hereunto Set my hand and aflb ed my omdal tisel, at the Clry of Dea {doings, Iowa the day and yvar'ftrat Above wrlten. a• N % town � • ' 'q�9'iAL6 �• STATE OP IOWA COUNTY OF POa K ww P.aae. ftR k.. Ayco"Mmq• &,,*.. 11-4 -85 foregoing M L is a hw PreaideniCrthe MEHCHANi 9 BONd1NQ COMPANY (1� VWW), do hereDy sand camvd of the POWSR OF ATTORNEY, executed by vats !t COMPANY (Mutuet), Which Is al In and effect. In Wltnese VW-oreof, I here heteu>uo Hat MY hand and of nd the seal of th9 Cflmpany, at P pis 1st dayof August 19. 94 St. This power d attorney expireS Dee Bl lber l3l. 199$. Mec 0014 10F At PROJECT COSTS FOR HYDE PARK ACQUISITION 130,000 130,000 98,000 Total 358,000 REHABILITATION 180,000 assuming $10,000 /unit and 18 units Total 538,000 PROJECT COSTS FOR CHANNEL ROAD ACQUISITION 158,000 158,000 Total 316,000 REHABILITATION 40,000 assuming $5,000 /unit and 8 units Total 356,000 OPTIONS FOR REHABILITATION ASSISTANCE FOR ACCAP PROJECTS 6008 2nd St., 5908, 5916 21/2 Street 6501 and 6531 Channel Road REQUEST: 1. ACCAP is requesting the following: a. Rehab assistance from the HRA b. Endorsement of "leasehold cooperative" tax status from the City on Hyde Park properties only 2. Requests to be discussed tonight: a. Requesting a letter from the HRA via the Executive Director regarding rehab assistance b. Policy regarding assistance for the two projects 3. Tax status issue to be discussed with the City Council on August 15, 1994. Assessor's analysis says about 1,394 of tax loss from three Hyde Park properties per year. POLICY OPTIONS: 1. Do nothing ACCAP says that project will have better chance of funding if local participation is provided. 2. Assist with rehab using current formula for rental rehab loans: a. Hyde Park, $11,200 for all 3 buildings, $622 /unit, 20 of total project cost of $538,000 b. Channel Road, $6,400 for two buildings, $800 /unit, 2% of total project cost of $356,000 3. Provide a deferred loan up to 50 % of rehab costs: a. Hyde Park, $90,000, due on sale of property, $5,000 /unit, 17% of total project costs b. Channel Road, $20,000, due on sale of property, $2,500 /unit, 6% of total project costs 4. Combination of loan \mortgage and deferred loan up to 50% of the rehab costs: a. Hyde Park, $45,000 deferred loan, $45,000 amortized over 30 years at terms to be negotiated based on cash flow analysis, $5,000 /unit but 1/2 is repaid. b. Channel Road, $10,000 deferred, $10,000 mortgage RECOMMENDATION 1. Request authorization to start negotiations as follows: a. Hyde Park, combination of loan and deferred loan as outlined in #4 above (17 %0). b. Channel Road, current method of assistance of rental rehab owner as outlined in #2 above (2 %). C. Fall back position is option #3 i. Hyde Park, $90,000 or 50% of rehab costs via a deferred loan ii. Channel Road, $20,000 or 50% of rehab costs via a second mortgage (deferred loan on Channel is last option) 2. Hyde Park project: 18 units immediately rehabbed high priority area HRA funds are leveraged housing conditions and level of rehab warrant greater participation Unique project for a specific affordable housing objective 3. Channel Road project: "tipping" project will support second mortgage consistent with existing rehab policy i Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: August 4, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Consider Participation in ACCAP Acquisition and Rehabilitation Projects I met with Steve Klein and Pat McFarland on Thursday, August 4, 1994 regarding two multiple family acquisition and rehabilitation projects. ACCAP is requesting participation in at least one of the projects. The following describes each of the proposed projects and the amount of participation from the HRA. City Council involvement may also be necessary. 1. Acquisition and rehabilitation for: 5908 - 2 1/2 Street 5916 - 2 1/2 Street 6008 - 2nd Street ACCAP would like to purchase these three multiple family buildings, rehabilitate them, and own them for a "single room occupancy" program. The buildings on 2 1/2 Street have seven, one - bedroom units in each building. The building on 2nd Street is a four -plex. The intent of the "single room occupancy" program is to provide affordable housing for single individuals who are working at $6.00 - $8.00 per hour. Typically, persons with this wage rate cannot afford one - bedroom apartments in the private market at $450.00 per month. There is no typical age range for these individuals. Some are younger and starting out in the work place, and others are older and may have a limited disability, or have been recently divorced. These individuals are those that are not typically served by the Section 8 housing program, since that program prioritizes the elderly, handicapped, and - family households. All three properties are currently.for sale. The property at 6008 - 2 1/2 Street is vacant at this time. ACCAP monitors properties through the multiple listing service, the newspaper, and HUD lists. ACCAP sees this as a 11 ACCAP Acquisition August 4, 1994 Page 2 opportunity to achieve one of their objectives (affordable housing), but at the same time, achieving a City objective to rehabilitate multiple family units in a priority neighborhood. The financing for this acquisition and rehabilitation would be financed through a combination of HOME, MHFA, and HRA funds. -Total project costs are estimated as follows: Acquisition: - $130,000 (5908 - 2 1/2 Street) $130,000 (5916 - 2 1/2 Street) $98,000 (6008 - 2nd Street) $358,000 Rehabilitation: $180,000 (18 units at $10,0.00 per unit maximum) $538,000 GRAND TOTAL Anoka County would use $130,000 of its County HOME funds and apply for grant monies from MHFA. ACCAP would own and manage the building for 20 - 30 years. In order to provide affordable rents, *ACCAP does not want.to retain a mortgage on the property. ACCAP is requesting that the City match the HOME fund contribution of $130,000. This represents about 24% of the project costs. They suggested that these funds be used for rehabilitation of the units. The funds would be secured by a mortgage with a "due on sale" clause requiring the funds be refunded to the HRA upon sale of the property (a deferred loan). Similar projects have been completed in the cities of Spring Lake Park and Columbia Heights. In Spring Lake Park, the City allocated CDBG fund equalling 25% of the project. In Columbia Heights, the City did not provide any HRA-- assistance but did.agree that the property would be taxed on a "lease hold cooperative tax status ". In essence, this means that the property is taxed at the homestead level (1% 11A ACCAP Acquisition August 4, 1994 Page 3 versus the typical multiple family percentage rate). Columbia Heights did not assist this particular project because its priority was on the Sheffield neighborhood, and they wanted to prioritize their funds for that effort. ACCAP is proposing that the Hyde Park units be taxed as a "cooperative" versus the typical tax rate for a multiple family building. Although the taxes generated would be less, ACCAP passes on the tax savings by using the money for rehabilitation costs. MHFA has an- application deadline of August 26, 1994. ACCAP is requesting either a resolution from the HRA or a letter from the Executive Director supporting the project and agreeing to negotiate on a participation rehabilitation costs. The letter should tax issue. ACCAP indicated that they do dollar amount at this time; however, as HRA and City can provide strengthens the application. 2. Acquisition and rehabilitation for: 6501 Channel Road 6513 Channel Road amount.for also address the not need a specific nuch detail as the fundability of the As is the case with the previous project, these properties are also for sale. The owner has indicated to ACCAP that he is willing to offer the property at a reduced price. Pat Wolfe advises me that these two four - plexes are good examples of "deferred maintenance ", but are not in as poor condition as the properties in Hyde Park. Also, seven out of the eight units contain Section 8 clients. ACCAP will be able to support a mortgage with the Section 8 program clients. Each of the four - plexes contain three bedroom units. The three bedroom rents will also command an income stream which will also support a mortgage. ACCAP, in this situation, is seeking participation from the City as to whether it would participate in any of the rehabilitation costs. It is my estimation that these would be less than the rehabilitation costs in the Hyde Park area. 3. Policy recommendations. Each project represents a different type of housing problem. The buildings in Hyde Park•have been on and off the market for approximately nine months. In this case, the private market is not "stepping to the plate" to take on the rehabilitation and improvement costs. (A four -plex across the street from the 2.1/2 Street properties was recently purchased by Carolee Zinter.) The 11B ACCAP Acquisition August 4, 1994 Page 4 Channel Road properties represent a more viable project in the private market; but as Pat Wolfe notes, they could easily tip and continue the downward spiral of deferred maintenance. Each project serves two different populations. The Hyde Park area would serve the working poor who need affordable rents. They would enjoy the benefits of a "cooperative" and participate ACCAP's ongoing management of the building. Hopefully, this will breed ongoing interest in the property and reduce transients and turnover that would occur for a one - bedroom unit in the private,market. The Channel Road properties are serving the larger family households with three - bedroom units. Upgrading the properties at this time will prevent further decline and avoid higher rehabilitation costs in the future. Although I have not had a chance to discuss this with you, I recommend that the HRA and City Council consider the following: 1. At the August 11, 1994 HRA meeting, the HRA should pass a motion to authorize the Executive Director to write a letter to ACCAP supporting the Hyde Park acquisition project and agree to enter into negotiations for a deferred loan for a maximum amount not to exceed $130,000. It is to be understood that the amount could be less, and is subject to further review and approval by the HRA. 2. The City Council at its August 15, 1994 should consider a resolution supporting the Hyde Park acquisition project and agree to research whether or not the City will support the designation of the properties as a "leasehold cooperative" basis for tax purposes. 3. The HRA at the August 11, 1994 meeting would agree to authorize the Executive Director to enter into negotiations with ACCAP on the Channel Road properties to provide a second mortgage for rehabilitation purposes that would be a second mortgage and would be administered as any other typical multiple family rehabilitation loan that it makes in conjunction with the MHFA rental rehabilitation program (maximum of $2,000 per unit of rehabilitation). These two projects meet some of the policies and concepts that the HRA and City Council have discussed in the past. First, State and Federal dollars are-used for at least 750 of the . project costs. Local HRA dollars are therefore leveraged. Secondly, ACCAP's ownership and management will help to stabilize tenant turnover in both areas and to improve the stability of the 11C 4 ACCAP Acquisition August 4, 1994 Page 5 neighborhood in general. Third, HRA money could be recovered in the Channel Road project via a typical loan as is done with economic development loans. Although the funds for the Hyde Park area will not be returned for several years, an immediate impact to the neighborhood will be achieved at one time. Finally, ACCAP has a good track record with rehabilitation projects. These projects could be a model for other projects, either in the private sector or for future HRA projects. BD /dn M -94 -423 11D Ad C.fiYOF FRIDLEY FRIDLEY MUNICIPAL CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY. MN 55432 . (612) 571 -3450 . FAX (612) 571 -1287 August 4, 1994 Shelly Eldridge Property Tax Supervisor Division of Property and Taxation Anoka County Government Center 2100 - 3rd Avenue Anoka, Minnesota 55303 Subject: Individual Parcel Qualification, Onan Tax Increment District, K1 Dear Ms. Eldridge: This is to respond to your letter to Rick Pribyl dated May 2, 1994. Thank you for your patience with the City's reply. Attached is.the list of properties in the Onan Tax Increment. District, or district ..K1, using your nomenclature. Our., records indicate that the district was certified on September 7;'1989. The attached analysis is based on that date. Qualifying activities in the State Statutes (M.S.'469.176(6)) are demolition, rehabilitation, renovation, site preparation or improvements, and qualifying street improvements. I have indicated the activity next to each parcel number in.the "PCS" column. If you need further information, please feel free to contact me at 572 -3590. Sincerely, _ Barbara Dacy Community Development Director, AICP =WJ C -94 -193 cc: Jim Casserly QUALIFICATION CERTIFICATION "Under penalties of perjury, 1 declare that the information furnished on the report of qualifying and non - qualifying parcels is true, correct and complete to the best of my Date: i : •o M W t7 0_ A M r v ! 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J .•R 1 M, 1t { # # # Casserly Molzahn & Associates, Inc. 215 South 11th Street, Suite 300 • Minneapolis • Minnesota 55403 Office (612) 342 -2277 • Fax (612) 334 -3382 M E M O R A N D U M TO: City of Fridley HRA FROM: James R. Casserly Mary E. Molzahn DATE: August 11, 1994 RE: HRA Levies Minnesota Statutes Section 469.033 Subd.6 authorizes two levies by an HRA on all the taxable property within its area of operation (which is the City). The levy must be approved by resolution of the City Council. If HRA levies had been imposed for 1994 the Authority would have received the following amounts: 1. The general HRA levy can not exceed 0.0131% of the City taxable market value which is $1,087,099,200 so the levy could generate $142,410; 2. The relocation HRA levy can not exceed 0.0013% of the City's taxable market value or $14,132. The combined levies could provide up to $156,542 for HRA operation, program and relocation activities. If we can provide any additional information please give a call. r /Lol _A 0 - 3S E 0 Mat- e- - - - - - -- --PA I s-s ceo - co ooa -- -11 - / -- - - *- r/Ar6e6d.#� e - - - -- - - - -- all -- - - - - - -- - - - -,y3 . -�--� TO: HRA COMMISSION MEMBERS FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR CRAIG A. ELLESTAD, ACCOUNTANT SUBJECT: 1993 AUDITED FINANCIAL STATEMENT DATE: AUGUST 11, 1994 Attached is the 1993 audited financial staement for the Fridley Housing and Redevelopment Authority. They conducted their audit in accordance with generally accepted auditing standards and audited, on a test basis, evidence supporting the amounts and disclosures in these financial statements. In their opinion, our financial statements present fairly, in all materal respects, our financial position for the year ended December 31,1993. If you have any questions regarding this financial statement, we will be happy to meet with you individually to answer them. CC: William Burns Barbara Dacy 1123 DATA"WYEARYEAWS93MEMO