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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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:
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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
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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