HRA 09/08/1994 - 6347HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, SEPTEMBER 81 1994
7:30 P.M.
PUBLIC COPY
CITY OF FRIDLEY
A G E N D A
HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, SEPTEMBER 8, 1994, 7:30 P.M.
Location: Council Chambers
Fridley Municipal Center
CALL TO ORDER
ROLL CALL
APPROVAL OF MINUTES: August 11, 1994
ACTION ITEMS:
CONSIDER APPROVAL OF TIF AGREEMENTS FOR . . . . . . . . . 1
SCHOOL DISTRICTS
CONSIDER APPROVAL OF SERVICE CONTRACT FOR . . . . . . . . 2 - 2U
REHABILITATION PROJECTS FINANCED BY HOME
FUNDS
CONSIDER APPROVAL OF ACQUISITION FOR 677. . . . . . . . . 3 - 3C
HUGO STREET N.E. AND 683 GLENCOE STREET,
CONSIDER APPROVAL OF REQUEST FOR . . . . . . . . . . . . . 4 - 4J
QUALIFICATIONS FOR SOUTHWEST QUADRANT
REDEVELOPMENT
REVENUE AND EXPENSES . . . . . . . . . . . . . .
. . . . . 5 -
5A
INFORMATION ITEMS:
HOUSING PROGRAM MONTHLY REPORT . . . . . . . . .
. . . . . 6 -
6A
UPDATE ON ACCAP PROJECTS . . . . . . . . . . . .
. . . . . 7 -
7D
UPDATE ON DESIGN PROCESS FOR SOUTHWEST. . . . .
. . . . . 8 -
8C
QUADRANT
DAIRY QUEEN DEMOLITION . . . . . . . . . . . . .
. . . . . 9
UPDATE ON HOUSING CONDITION STUDY . . . . . . .
. . . . .10
REPORT ON MISCELLANEOUS ITEMS FOR . . . . . . .
. . . . 11 -
11A
SOUTHWEST QUADRANT AND LAKE POINTE
OTHER BUSINESS:
ADJOURNMENT
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING, AUGUST 11, 1994
CALL TO ORDER
Chairperson .Commers called the- August 11,.. 1994,. Housing . &
Redevelopment'Authority meeting to order at 7:30 p.m.
ROLL CALL:
Members Present: Larry Commers, John Meyer, Jim McFarland
Members Absent: Virginia Schnabel, Duane Prairie
Others Present: William Burns, Executive Director of HRA
Barb Dacy, Community Development Director
Grant Fernelius,. Housing Coordinator
Jim Casserly, Development Consultant
Craig Ellestad, Accountant
APPROVAL OF JUNE 22 1994 HOUSING & REDEVELOPMENT AUTHORITY
MINUTES•
Mr. Ellestad stated, under item 1, paragraph 2, the last sentence
should read, "The payment schedule shows a payment of S3.089*
twice a year starting in 1996 and continuing through 2003..
Obi TION-by Mr. McFarland, seconded.byiXr.:Meyer,;�-to approve the,7 t '.
June 22, 1994, Housing & Redevelopment Authority minutes °,gas _
amended.
UPON A VOICE_VOTE, ALL VOTING . AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
1. RESOLUTION TO AMEND HOME MORTGAGE ASSISTANCE PROGRAM
Mr. Fernelius stated there is one proposed change to the program
rather than two as stated in the memo. The first issue concerns
the requirement under the Home Mortgage Assistance Program. The
borrower needs to make a minimum of $15,000 worth of improvements
to the property to be considered. If buying a home or
refinancing, at -least 10% of the mortgage must be for
improvements to the property. In our experience working with the
program, staff has found this requirement is too restrictive and
is not workable for the program. Borrowers have been turned down
or have withdrawn from the program because they do not want to or
cannot make that amount of improvements for the deal to work.
Realtors who have shown some interest in the program have
indicated this restriction is too much to make it workable.
Staff is recommending to reduce the requirement from $15,000 to-
$5,000. By doing so, he would hope more people.would apply and
the program would-be successful. The other recommendation, which
HOUSING & REDEVELOPMENT AUTHORITY MTG AUGUST 11, 1994 PAGE 2
they are retracting, is the issue of-sweat equity. Under the
current program, the borrower is.not allowed to do any of the
work involved in the project. Staff had made the recommendation
to allow the homeowner to do the work in order to make the
program more workable because .a borrower.had been turned down
when he wanted to do•• the:,work. * We have found.; however, in
talking with other cities that have similar programs have the
same requirement. A contractor is brought in primarily so the
work*is done in a professional manner and is done on time. Our
lender did not have a requirement for the borrower to do the
work. Staff now feels it is a good idea to keep this requirement
as part of the program. Staff,is asking for approval on the
recommendation to change the minimum rehab level to $5,000.
Mr. Meyer asked if a potential borrower brings in a bid from a
contractor.
Mr. Fernelius stated the program requires a borrower to come.in
with an estimate of the work to be done.
Mr. Meyer asked.the basis on which the contractor gives an
estimate. Does the program have any requirements?
Mr..Fernelius stated there are no particular requirements which
is a problem they are running into-and hope to address. 'it is up
to*the borrower to work with the contractor,. It As a problem for
some'-rborrowers :who havever� „done rth3s_4$efore :and, do. nat know,a
what to look -for aThe proposedimprovements must .meet the
guidelines which states these are to be basic improvements or
repairs that increase the value of the property.
Mr. Meyer expressed his concern that a borrower would receive an
unfair estimate from a contractor.
Mr. Fernelius stated.the program does not have a requirement that
the borrower provide competitive estimates, although staff
encourages them to do so. The bank looks at the estimates to
make sure they are reasonable.
Mr. Meyer asked if the contractors must be approved and /or
licensed contractors.
Mr. Fernelius stated the program required a licensed contractor.
A licensed contractor is licensed through the State of Minnesota.
The State licenses remodeling contractors.
Ms. Dacy stated the City does not duplicate a license - issued from
the State. The City will license specialty contractors.
Mr. Meyer stated he is trying to protect the borrower. The
program forbids the borrower to use sweat equity but we will put
HOUSING & REDEVELOPMENT AUTHORITY MTG., AUGUST 11, 1994 PAGE 3
them at the mercy of someone who can gouge them. He recommended
requiring estimates from two licensed contractors.
Mr. Fernelius stated that requirement could be included. He felt
the borrower would do that anyway. One change staff'is looking
at is the' idea 'of bririgiiig in a rehab counselor who would walk
the borrower through the process from the initial inspection and
deciding what will be done, helping them prepare a set of
specifications so they can get comparable estimates, and helping
them in the bidding process. That is the part of the program
that is perhaps missing.
Mr. Meyer expressed his concern that, if it is much easier for
people to participate in the program, we will see a group of
people who have not seen fit to participate before and.it maybe
they are more vulnerable to a- dishonest contractor. If we can
require two bona fide estimates, we will have done them a favor
as long as we are lowering the requirement.to make it more
appealing to participate.
Mr. Fernelius stated this might work in some cases and not in
others. If you make this - change, there is no guarantee the
borrower will get comparable estimates. The contractor needs to
look at a set of specifications or work write up so they know
what'is being asked. That is the part of the program he would
recommend changing in the future, and he thought this would make
an improvement to , the_ - .,program: Thee. reduction: in the :minimum ;..
rehab amount will also make an improvement and make the``,program,,
more successful. There has been some interest, a.few people have:
gone through, but no one has actually closed on a mortgage.
Mr. Meyer stated he agreed with having specifications or, plans.
Even though having two estimates is imperfect, it is, better than
just one person walking through.- He felt lowering the'minimum�
was a good idea, but felt there should also be two estimates.
Mr. Fernelius stated he had no objection. This was not an,
additional burden on.the borrower and may provide more
protection.
Mr. Casserly stated, as a procedural matter and in order to keep
the program limitations formalized and program operations more
informal, he recommended a motion directed to staff to, whenever
possible, to secure more than one bid would be in order. -The
resolution before the commission is much more formal because it
tries to more specifically describe who is eligible to
participate rather than stating how to operate the program. He
also recommended a motion to modify the resolution to delete.the
sweat equity provision..
9
HOUSING & REDEVELOPMENT AUTHORITY MTG AUGUST 11, 1994 PAGE 4
MOTION by Mr. McFarland, seconded by Mr. Meyer, to modify a
Resolution Authorizing the Modification of the Fridley Home
Mortgage Assistance Program to delete the sweat equity provision.
UPON A.VOICE DOTE, ALL. VOTING AYE.,. CHAIRPERSON COMMFRS DECLARED
THE-MOTION CARRIED UNANIMOUSLY.
MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve
Resolution No. HRA 6 - 1994,*Authorizing the Modification of the
Fridley Home Mortgage Assistance Program, to reduce the
remodeling requirement from $15,000 to $5,000.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED.
THE MOTION CARRIED UNANIMOUSLY.
MOTION by Mr. Meyer, seconded.by Mr. McFarland, to the HRA staff
require two bids and /or estimates from licensed contractors for.
any rehab work for which a mortgage would be considered prior to
authorization.
Mr. Burns stated he assumed this would apply to multi
contractors. One project.may have a number of contractors
involved.- Is it the intent that two estimates be obtained
from each specialty?
Mr. Meyer stated all subcontractors who.;are, part of the
$5; 000 or more -total c. packagek for which <a _aoan ist be3sg ` -
requested should all be.subject.to_ he two.estimates:.
Mr. Casserly stated he would preface his observations with
"whenever reasonable and possible" to try to secure two
bids.
Mr. Commers stated the Commission can direct.staff.that our
policy is to try to achieve two bids from licensed
contractors on all rehab programs. We have not used the
program so it is hard to tell. Let us try -this, and staff
will need to-use their best efforts.
Mr. Meyer stated, when you get two estimates, each should be
written out as to what that bidder is going to do. This is
standard for a contractor to do. It does put a burden.on
staff but, as long as we are trying to help-people, we may
as well make it good for them.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
HOUSING & REDEVELOPMENT AUTHORITY MTG., AUGUST 11, 1994 PAGE 5
2. AUTHORIZE ACQUISITION OF 550 HUGO STREET N.E.
Mr. Fernelius stated staff has negotiated with the owner of this
property. The.property is a single family home with 700 square
feet; one story; and-no basement. The.'owner basically used the
house �f or * storage : ' It has • been • vacant approximately ' two year's
and is in extremely poor condition. The house in on a
nonbuildable lot so what would•be done with the property once
acquired is at this time questionable. It does meet the
objective of the program to remove substandard housing. The
property is located next door to 560 Hugo Street which the HRA
has tried to acquire previously, and next to 540 Hugo Street
which the HRA has also tried to acquire. If, in the future, the
HRA acquires the other two properties,. there is.the potential to.
combine the parcels and create a buildable lot. The property.was
appraised at $36,000. The.assessor - has the property valued at
$37,000. Staff were able to negotiate a purchase price of
$34,800 so it is within the guidelines established for this -
program. Staff is requesting authorization to buy the property,
and for the Executive Director to enter into a purchase
agreement. Once acquired, the building would be torn down and
the vacant parcel maintained by the HRA as part of the program.
Mr. Meyer asked when the house was built.
Mr. Fernelius stated the house was built in the mid- 1940's.
MOTION by Mr. Meyer, seconded by Mr. McFarland, to authorize
staff to purchase 550 Hugo.Street N.E.,for $34,800 and td
authorize the Executive. Director to execute a purchase.agreement
for the property.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
3. CONSIDER LOAN FOR MOORE LAKE APARTMENT PROJECT
Ms. Dacy stated the property is.-,located on the west side of Polk
Street and extends to Hillwind. The City owns the lot at 5720
Polk Street. After the City bought the lot, the house was
demolished and the City is now maintaining the lot. The owners
of Moore Lake Apartments have applied to the MHFA for rental
rehab monies under the old grant program. They have completed
the grant process and, with an equal contribution on their part,
they have installed a new roof, upgraded appliances, updated the
water softeners, etc. The last piece was to repave the parking.
lot. The parking lot, because of the age of the building, is
undersize. Some of the tenants have been parking on the.street
south of the project. The City Council has established a no
parking zone on that street, and the City Council wants to adhere
to that policy due to safety issues. The owner is looking at
HOUSING & REDEVELOPMENT AUTHORITY MTG., AUGUST 11, 1994 PAGE 6
options for expanded parking. Six months ago, they started
looking at the property north of the apartments. The other
property owners do not seem willing to sell a portion of,their
property for parking.. Staff checked to see if we could help them
.. attain., a• 35. foot, strip to expand :their parking area..
Ms. Dacy stated the proposal is that the City would convey 35
feet from the lot at 5270 Polk Street to allow the creation of,15
parking spaces. The owners.feel this would solve the problem of
having tenants park on the street. Selling the land would leave
a sizeable piece of property for the construction of a single
family dwelling. In meeting with Mr. Stewart, the owners'
representative, he stated he would have trouble financing the
entire amount for the parking lot construction and asked for help
from the HRA. Staff is suggesting the following agreement:
L. The City agrees to sell a strip of property necessary for
expansion of the parking area to Mr. Stewart for.$5,000.
2. The Fridley HRA agrees to loan the Moore Lake Apartments the
sum of $10,000 for..total project'costs. The loan would be
repayable over a 10 -year period, with principal and interest
payments being deferred for two years.
Mr. Commers asked if there would be screening between the parking
area and the vacant lot. s
Ms. Dacy stated, because of the change in.elevation between the
apartment property and the vacant lot, a 5 -foot retaining wall .-
would be constructed. The code requires a fence above the
retaining wall so there would be screening.
Mr. Commers asked if the dumpster is also required.to }fie
screened. _
Mr. Burns stated the dumpster must also be screened.
Ms. Dacy stated another property owner, Mr. Gilstad, is willing
to convey an easement but he is not willing to sell the property.,
Mr. Burns stated the terms of the loan would be $10,000 over a
10 -year period at 5o.interest with two years of deferred
principal and interest payments. The City would sell the portion
.of the property for the parking lot for $5,000. That.is a good
purchase price and the terms of the *loan is also favorable. He
spoke with Mr. Stewart who thinks this is good for him..
Mr. Commers asked if the HRA could get some personal guarantees.
It appears there.is other financing on the building which does
not provide much protection.
HOUSING & REDEVELOPMENT AUTHORITY MTG., AUGUST 11, 1994 PAGE 7
Mr. Burns stated he thought he had mentioned personal guarantees
in the negotiating session.
Mr. McFarland asked if this was a new owner for this property.
Ms. bapy stated the current owners acquired the property.at' least
three years ago, to her recollection. The owners are a group of
partners.
Mr. McFarland asked if there is enough cash flow for this
property that they need subsidies.
Ms. Dacy stated, as the owners explained it, besides the MHFA
grant and loan,,they have put in additional dollars to turn the
project around.
Mr. Burns stated, before formalizing, we can require looking at
their financial statements and looking at their cash flow
situation.
Mr.. McFarland stated this was not his question. A commercial
operation is for-profit. These are new owners. What has changed
since purchase other than they made a bad investment and need to
come to the City for subsidy?
Mr. Burns stated the profit situation in the apartment rental
business is- marginal,: and it is.very difficult to get:l:add tional
money because most are fairly highly leveraged. He has'not seen
financial statements for Moore Lake Apartments, and he can
request to see them before providing a subsidy where none is
needed.
Mr. Commers asked if the owners were actually spending,$31,500
for the parking.
Mr. Burns stated this was an estimate arrived at.during the
meeting between staff and Mr. Stewart. There will be more work
done on the estimate. Also, the mayor is interested in trying to.
see if the owners would be willing to construct garages, thereby
generating additional taxes. Mr. Stewart is willing to consider
that if the City was willing to loan a higher amount. He would
prefer-to take one thing at a time and get HRA's conceptual
approval for the parking lot as this time.
Mr. McFarland asked if the apartments were deteriorating.
Mr. Burns stated the owners are doing a lot of improvements
inside and have been very cooperative with staff. Staff has a
good rapport with them and would like to.help.
HOUSING & REDEVELOPMENT AUTHORITY MTG. , AUGUST 11 1994 PAGE 8
Mr. Commers stated Mr. McFarland makes some good points. If. the
HRA is going to start doing - things of this nature and assist
multi - property owners, we should look at their financial
statements before getting into it too far. There is a point
whereby it.is.not like a homeowner. This is a business -
agreement:. We do.'not ,want. the property to deterl.O ,ri to because
they are not making money, but we also want to make sure there is
a need.
Mr. McFarland asked if getting more information on their
financial status would stall the project.
Mr. Burns stated staff would have to come back with a-formal
agreement. He would like to have an understanding to authorize
staff to negotiate with the owners, look at'and verify their
financials., and bring it back to the next meeting. If .they are
ready with an agreement, we can bring that forward at the same
time.
Mr. Meyer stated on one hand we.want to make sure they can give
us personal guarantees so we; get repayment,. but on.the other hand
we are.looking at their financial information to see if they
really need the money. For any monies that we authorize for
lending, we have never really given a means test.
Mr. Burns stated they have looked at.financial information for
other projects. F �°
Mr. Commers stated these are looked at
who apply for rehab loans need to show
of McGlynn Bakeries, he looked at this
the community. This is the first time
multiple housing program. This is not
is trying to rehab the multiple housin4
liveable and maintained. To him, this
single family and commercial. Perhaps
all.
individually.. Homeowners
their income. In the.case
as far as keeping jobs in
for a request from a
bringing jobs in, but HRA
stock to make .4ure.iti.is
is a mixture between
they should.not do this at
Mr. Meyer stated he thought they should, but he is trying to
apply a means test to this situation. Means is not a real factor
in any of the others they have examined.
Mr. Burns agreed that they have.not been consistent.
Mr. Meyer stated there is no parking on Lynde Drive. The choices
are to get rid of the apartments, tell the people not to drive :
cars, or help provide parking for the cars. So, this is a public
purpose being served.
Mr. McFarland thought the owner has an obligation to provide the
tenants with a place to park. If he wants tenants, he needs to
HOUSING & REDEVELOPMENT AUTHORITY MTG., AUGUST 11, 1994 PAGE 9
provide amenities. If not, the class of tenant will deteriorate
which is a situation we are trying to avoid. But he felt they as
investors had made a bad deal and now the HRA is paying for it.
:..,.Mr.. Meyer asked . if they .then -tel-1 them. they. ..are' investors _ and. to
find .their own parking. or .help them .` lth -their parking.
Mr. Commers stated the City is trying to help by selling a parcel
of land, and they want us to finance a loan. If we can get
personal guarantees, there may not be a reason to get into
financials. He did not thing it an unreasonable inquiry to make.
Mr. Casserly stated he did not think they would be setting a
precedent. The apartment complex has been there for some years.
The problem is not the no parking zone. .We seem to be solving.a,
parking problem. He was.not sure they were getting.off the track
in talking about cash flow and financial statements.
Mr. Commers stated it is their obligation to solve their own
parking problem.
Mr. Casserly stated that problem has not changed for this.,owner
or for previous owners.
Mr. Commers stated is sounds like the City just changed their
policy and put No Parking signs on Lynde Drive.
Ms. Dacy stated the issue is-with current management who has been
more aggressive with maintenance and.trying to address these
issues with the tenants. As far as the No Parking zone, the
management has requested the City Council to remove the No
Parking signs which they did not want to do. Staff was asked to
resolve the problem.
Mr. McFarland stated.he did not think they were setting a
precedent. It bothers him that these businessmen have used bad
judgment. As.Ms. Dacy stated, overtime-people who used to have
one car now have two and that is where the problem has evolved.
Mr. Casserly .stated the point is well taken. He was not sure
that part of this isn't the City asking the.HRA to help them
solve an overall development problem. This seems to be a
solution. He did not know how much time they wanted to spend
given the size of the project.
Mr. Meyer stated, let us say,for example we are in favor of the
project, except for asking for financial information and finding
out if they can do this, what do we say then. Do we turn them
down because they do not need the money? If we are not taking it
seriously, why bother?
HOUSING & REDEVELOPMENT AUTHORITY MTG., AUGUST 11, 1994 PAGE 10
Mr. McFarland suggested taking a second mortgage on the property
as security.
Mr. Casserly stated the City owns the property so the City would
have a 'first lien on the property• which puts 'the HRA- in a -secure*
posi dn. ='Tiie..HR�i - should -take' a 'i en: part'ictilarly -. it it'° is- tiie
first.
MOTION by Mr. McFarland, seconded by Mr. Meyer, to Approve the
terms of the agreement as recommended subject to negotiations
with the Executive Director and his request of the owners for a
guarantee.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
Mr. Commers stated he thought they should discuss guidelines
before taking further requests, if there are going to be _other
rehabilitations on commercial buildings.
4. REVENUE AND EXPENSES
Mr. Ellestad-stated the checks to be approved.are 25207-25240-
plus the additional expenses as outlined on the handout
distributed dated August 11,'1994.
MOTION by Mr. Meyer, seconded,.by Mr..McFarland,..:.to- apprdge the1.
check register, checks 25207- 25240, plus the additional expenses.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED``
THE MOTION CARRIED UNANIMOUSLY.
5. 'HOUSING PROGRAM UPDATE FOR JULY
s
Mr. Fernelius reviewed the housing program update. On.the
housing rehab program, 20 people have.been selected for the home
improvement block grant program. Those people will be assisted
by ACCAP in their applications, doing inspections, getting .
estimates, etc.
Mr. Fernelius stated the scattered site program, with the one.
approved this evening, now has four properties. Two others.being
looked at are 683 Glencoe and 677 Hugo. Both properties have
been appraised and offers made, but he has not yet heard from the
owners. If they accept the offer, we may have something at the
September meeting.
Mr. Fernelius stated the Minnesota Cities Participation Program
is a first time homebuyers program. Another lender has been
added to the list making the total seven. Marquette Bank
Brookdale has indicated they have closed five mortgages under the
HOUSING & REDEVELOPMENT AUTHORITY MTG., AUGUST 11, 1994 PAGE 11
1993 program for $360,520. Some people took advantage of that
program, and he has had inquiries for this year's program as
well.
6. LAKE POINTE MARKETING UPDATE ,
Ms. Dacy stated that two 2 -sided signs have been erected, and
each side of the sign has approximately 50 squa -te feet. Cost
estimates to extend the electrical cable 2,000 feet and put a
spot light on each of the signs is approximately $8,000. If the
Commission wants to pursue lighting, she recommends lighting only
the Highway 65 side. However, $5,000 for lighting one sign does
not seem feasible. Staff will still evaluate if existing lights
make the sign readable at night.
Ms. Dacy showed a proof of the ad for the magazines Twin Cities
Business Monthly, Corporate Report, and Minnesota Real Estate
Journal.- The inserts for the brochures are almost done, and
they have a mailing list of 310 real estate brokers in the Twin
Cities area. The mailing should be going out within the next
week. Merrill Busch.warits to follow that up with another mailing
in October. The programming is in place for the fall.
Mr. Meyer suggested outlining the boundary of the 33 acres.
Ms. Dacy thought this would be a worthwhile effort.
Mr. Burns stated Mr. Stuebner of Five Star Realty is. interested
in acting as a potential consultant to market the property. Mr.
Stuebner will be presenting'a proposal next week. The advantage
of having Mr. Stuebner is that he-has more nationwide contacts.
Mr. Stuebner contacted the City to do this and it may be that the
HRA would like to also consider others.
7. UPDATE ON DAIRY QUEEN MOVE
Ms. Dacy stated the Mississippi Street Dairy Queen would be.
relocating to the former Marquette-Bank building on Osborne Road.
The HRA will have no costs as part of the move. She did not have
a detailed list of what Mr. Fitch is taking out of the current
location. Her impression is that he would take those items he
would need for the operation of his business. She did not know
what would be left behind and the cost of disposal. She will
find that out.
Mr. Burns stated he would like to,see the building-taken down
quickly. At other sites, there have been problems with
scavenging, and there is concern about the public safety.
HOUSING & REDEVELOPMENT AUTHORITY MTG. , AUGUST 11 1994 PAGE 12
8. UPDATE OF FRIDLEY TOWN SQUARE
Ms. Dacy provided an update to.the Commission on the Fridley Town
Square project in her memo dated August 4, 1994.
9.. 'CONSIDER ACOUISITION'OF GUNDERSON PROPERTY.
Ms. Dacy stated Mrs. Gunderson had called her in July to find out
the HRA's willingness to acquire her property. The decision last
year was to acquire the Hedman property and extend the option on
the Gunderson property. Mrs. Gunderson wants to sell and
relocate. When asked if she would be willing to extend the
purchase agreement another year if the HRA chose not to proceed
at this time, Mrs. Gunderson stated maybe. The remaining amount
of purchase is $88,500. The estimated current market value is
$79,600, and the City's assessed value is $73,200.
Mr. Commers asked if this property is needed because of the
environmental concerns by having traffic going into Lake Pointe.
Ms.. Dacy stated the actual travel lanes of the new roadway would
be 5 feet to 10 feet from the house.
Mr. Commers asked, if they do find a developer, will they need
that property.
..Ms Dacy.stated they must make a determination of whether or not
to complete the intersection improvements..-'If that intersection.
is to be upgraded, staff recommends acquiring the property. The
issue is whether to do this now or later.
Mr. Commers asked what additional improvements will be made.
Ms. Dacy stated both legs of the intersection will be= widened to
provide two left turn lanes onto Highway 65. There is now one
turn lane, one lane straight ahead, and one right turn lane: The
leg that is there.now would move toward Moore Lake. It is
necessary to move the opposite leg in order to match up the
lanes. On the east side, traffic is beginning to block
intersections.
Mr. Commers stated, if the bottom line is that the property is
needed sooner or later, he would hate to buy it and hold it.
But, if the property will need to be paid for sooner or later, it
may be worth the effort to see what could be negotiated.
Ms. Dacy recommended taking the same approach as done previously
to sell the building to a mover to get it off the property.
Another option is to work with ACCAP to move the building but
they will not pay for the house.
HOUSING & REDEVELOPMENT AUTHORITY MTG., AUGUST 11, 1994 PAGE 13
Mr. Commers asked staff to see what they could negotiate and
update the Commission at the September meeting.
10. UPDATE ON DEMOLITION OF SCATTERED -SITE PROPERTIES
' Mr... Cori stated . the iriforaiation • hicldded iii •the agenda
mentions* the' problem of 'damage *to properties as a result' of
scavenging. If there anything that can be done about the damage
when properties are acquired?
Mr. Burns stated the City could try to go after the vandals but
it is probably more trouble than what it is worth. He suggested
shortening the time between the time when the property is vacated
and the time when it is torn down. The Fire Department burned .
one property but there was a delay during which people broke into
the home. Having the Fire Department burn a property does not
really.save any money. A contractor must still be brought in to
haul away debris.
Ms. Dacy stated the Fire Department tries to schedule training at
certain times during the years. This may or may not coincide
with what staff wants to do. Other things can also come.up to
cause- delays. She and,Mr. Fernelius are working to try to close
in- coming acquisitions within days of each other and also get
quotes for demolition to occur about the same time.
Mr.. Commers;. stated - demolition : is increasing ,costs - ;significantly..
Ms. Dacy stated demolition has been accounted for.in the budget.
11. CONSIDER PARTICIPATION IN ACCAP ACQUISITION AND
REHABILITATION PROJECTS
Ms. Dacy stated ACCAP would like to purchase and rehabilitate
properties located at 5908 and 5916 - 2 1/2 Street, 6008 - 2nd
Street, and 6501 and 6513 Channel Road and is requesting
participation from the HRA.
Ms. Dacy stated the first properties are located at 5908 and 5916
-2 1/2 Street and 6008 - 2nd Street. The buildings on 2 1/2
Street have seven one - bedroom units in each building. The
building on 2nd Street is a four -plex. ACCAP monitors. MLS
records and HUD housing to get market opportunities as they come
available. These properties have been one the market for 8 to 9
months. The 2nd Street property is being foreclosed. All
buildings are in a distressed condition. ACCAP wants to own the
buildings, rehabilitate them, and rent out the units. The
remaining properties are located at 6501 and 6513 Channel Road
which is east of Highway 65 and.north of Mississippi Street.
These two buildings are four - plexes.
HOUSING & REDEVELOPMENT AUTHORITY MTG., AUGUST 11, 1994 PAGE 14
Ms. Dacy showed slides of the properties showing what
improvements are necessary. The property on 2nd Street is vacant
and is non - conforming. The windows need replacing as well as
extensive interior work. The properties at 2.1/2 Street are
..occupied.*. ..The. ,dwner,..i.5.. rurrently tryipg . to.. Sell .the .bti;ildings.r
The properties. on. *Channel . Road . are in.. better conditioft. These
buildings have three - bedroom units. Seven out of eight-units
have Section 8 tenants.
Mr. Commers asked by Section 8 does not require the buildings to
be rehabilitated.
Ms. Dacy stated Section 8 has minimum housing quality standards.
On Channel Road, the tenants have been there a long time but
Section 8 will not recommend they ga to properties where they.see
deferred maintenance. These buildings are in fairly good
condition and are in a nice area next to a single family
neighborhood.
Ms. Dacy stated ACCAP wants to acquire the Hyde Park property,
own and manage these apartments. They want to provide these
units for low income people and are proposing a single room
occupancy project. They do not want to carry a mortgage on the
property. They are asking for MHFA dollars to fund a significant
part of the acquisition. They are asking Anoka County for
$130,000 in HOME funds. The HRA is being asked for.participation
in the - .rehab costs:=• -To= acquire and rehab the buildings4 Hyde
Park will cost a total of $538,000, assuming -a maximum of $10,000
per unit for rehab. For the properties on Channel. Road, ACCAP-
wants to continue to provide affordable family housing keeping
the three - bedroom units. This project would support a mortgage.
Acquisition and rehab costs are estimated to be $5,000 per unit,
perhaps less:
Ms. Dacy stated ACCAP is asking for rehab assistance from the HRA.
and wants the Council to look at a leasehold cooperative tax
status. This is an intermediary step between renting and owning.
In this case, the tenants will not own a share as in a
cooperative; the tenants will lease a share and ACCAP will own
the unit. The advantage is that this is a lower tax status. The
HRA does not have to discuss tax status issue.. This is more for
the City Council. The HRA is asked to look at the options for
rehab assistance. ACCAP wants to.put.together an application to
MHFA for monies to accomplish the project and, with local
participation, their chances will be increased to receive
funding.
Ms. Dacy stated staff has come up with four options. Option 1
would be to do nothing. ACCAP states they will have a better
chance of funding if the HRA participates but they could
conceivably do the project without HRA assistance and by just
HOUSING & REDEVELOPMENT AUTHORITY MTG., AUGUST 11, 1994 PAGE 15
getting the tax status changed. Option 2 would be to use the
typical loan policy on a rental rehab program. Money is
allocated in the budget but have had no requests for assistance.
The amount of assistance for the Hyde Park area buildings would
be.- $11; 200 or•.4 ppro Amately 2,a of the -total cost'. 'For the
.Channel Road. buildings.* needing' less rehabs would also Yie 2% .of the
total cost. Option 3 would be to provide a deferred loan. In
the case of a deferred loan, the formula could be used for up to
50% of the rehab costs or up to $90,000, but the loan is due on
sale of the property. This represents 17% of the total cost. On
Channel Road, the loan would be $20,000 or 6% of-the total cost.
Option 4 is a combination of a deferred loan with some type of
pay back over, for example, a 30 -year period to get some of the
money returned to the HRA. By doing this, the rehab can be done
and the ERA gets the money back.
Ms. Dacy stated staff's recommendation is to get the HRA's
authorization for staff to negotiate with ACCAP to start with, in
the Hyde Park area, with a deferred loan and mortgage. For
Channel Road, start with the current method which would be to
provide $800 per unit and have the option of a deferred loan.
Staff believes strongly that 18 units is a lot of units in the
Hyde Park area. ACCAP is a good owner with a good track record .
and should achieve some stability in that area. This is a high
priority area. Their funds are leveraged. The damage done.to
these properties warrants a higher.participation by the-EIRA..
This is an opportunity to provide, unique affordable hod sing.,...on
Channel Road, ACCAP plans to finance with a first mortgage, and
HRA would take the second position.. By participating with ACCAP
on this project, it will help to stabilize the area and
preventing it from turning into something worse. If the owners
of the Hyde Park properties came to the City and asked for
assistance, the Housing Coordinator would work with..them. There
is justification for going beyond that. The buildings'have been
on the market for some time, and she did not think the owners
would rehab to the level the HRA would insist.
Ms. Dacy stated $110,000 was allocated in the 1994 budget which
has not been expended at this time. It was to be granted for
matching funds for multiple family rehab. Any amount decided
upon would be within the budget.
Mr. Commers stated, if we have a due on sale arrangement, the HRA
will not know when that will come back.
Ms. Dacy stated this was correct.
Mr. Commers asked if there was Minnesota Housing Finance Rehab
Funds for the properties on Channel Road.
HOUSING & REDEVELOPMENT AUTHORITY MTG., AUGUST 11, 1994 PAGE 16
Ms. Dacy stated her.understanding is that the rehab funds came
from a Federal funding source which no longer exists. There are
no grants.
Mr. Commers stated he did not understand why we don't go to the
owner and make • them • do the rehab-.
Ms. Dacy stated this was a good point. The City has been
operating its rental inspections on a complaint basis. She
thought the HQS addresses exterior deterioration very minimally.
Their primary concerns are interior and real safety issues.
Mr. McFarland asked the value of the properties.
Ms. Dacy stated she thought the value of the Channel Road
properties'-to be $163,000 each and are selling for $165,000. The
owner has.been talking to ACCAP and are willing to go lower down
to perhaps $158,000. In -this case, there is a motivated seller..
Mr. McFarland asked if the appraisal is based on income.
Ms. Dacy stated.the County did the appraisal, and she did not
have the details.
Mr. McFarland asked how they establish the value of the.four -plex
apartment properties.
Ms. Dacy stated the County had the apartment property valued at
$98,000 and ACCAP was working on a purchase agreement for
$90,000. She did not know how they arrived at that figure.
Mr. Commers stated staff is recommending a combination for the
Hyde Park properties and asked what-that meant.
Ms. Dacy stated ACCAP wanted what amounts to.a grant. Mr. Burns
and Ms. Dacy are suggesting a 50/50 approach - 50% in the form of
a deferred loan and 50% amortized over some term to be negotiated
and see if ACCAP will agree to a monthly payment. She has asked
ACCAP for their proposed cash flow analysis, operation and
maintenance, tax allocations, and their proposed rental rate
return at $250 per month per unit.
Mr. Commers stated he did not see much difference between $45,000
approval and one amortized over 30 years other than the HRA
receives some minor payments.
Mr. Casserly asked if staff was suggesting a $90,000 loan but
$45,000 be deferred.
Mr. Burns stated yes. In essence, half the amount is a grant and.
half is a loan.
HOUSING & REDEVELOPMENT AUTHORITY MTG., AUGUST 11, 1994 PAGE 17
Mr. Casserly stated half is a loan being amortized over 30 years
and the other half is due on sale of the property.
Mr. Commers asked from which program these funds were coming.
Ms.- Dacy stated 'the .funds. were from the multiple .family%program:
The HRA-has two accounts for'1994 - $142,500 for the 1994 rental
rehab program and $110,000 to be allocated toward the grant
application which was not approved. Staff proposes using the
$110,000 in that "grant" account.
Ms. Dacy stated ACCAP is putting together an application to MHFA
which must be completed by August 26. ACCAP is asking for a
letter from the Executive Director providing conceptual approval
for rehab assistance and participating in the project; and, if.
the HRA wishes to commit to some type of terms, to indicate those
terms. Staff recommends starting with a negotiating approach.
Mr. Burns stated staff recommends starting with a mixed approach
and ending with the $90,000 deferred loan.
Mr. Commers asked the Commission members if they had any
objections to the concept.
The Commission members concurred. They had no objections.
Mr. Commers asked if members wished to get into more detail at
this point.
Mr. McFarland recommended going forward on the basis of
negotiating for the best the HRA can get.
Mr. Meyer agreed.
Mr. Commers stated the HRA had consensus for the Executive
Director write a letter to ACCAP to do as recommended using the
combination for the Hyde Park properties.
Mr. Commers asked what staff had intended for the properties on
Channel Road.
Mr. Burns stated staff would like the latitude to go to $20,000.
They would start at $6,400 and it may go as high as $20,000.
That brings the total to $110,000 if we go to the extremes of our
bargaining powers.
Commission members concurred.
HOUSING & REDEVELOPMENT AUTHORITY MTG., AUGUST 11, 1994 PAGE 18
MOTION by Mr. McFarland, seconded by Meyer, to adjourn the
meeting.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED AND THE AUGUST 11, 1994, APPEALS COMMISSION
MEETING ADJOURNED AT 10:1b P.M.
Respectfully submitted,
`Ao Voter
Lavonn Cooper
Recording Secretary
TO: WILLIAM W. BURNS, CITY MANAGER k
FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR
CRAIG A. ELLESTAD, ACCOUNTANT
SUBJECT: 1995 SCHOOL REFERENDUM LEVY RETURN AGREEMENTS
DATE: SEPTEMBER 1, 1994
Attached are the 1995 School District Referendum Levy Return Agreements to
be placed on the HRA's agenda for Thursday, September 8th and on the City's
agenda for Monday, September 19th.
These annual agreements need to be approved by both the HRA Commission
& the City Council.
Also attached are the cover letters to accompany these agreements. These
cover letters need your signature.
After approval and the appropriate signatures have been obtained on all
documents, please return them to me so I can forward to the School Districts
to obtain their signatures.
The estimated total levy return for 1995 before delinquents is $310,941.
This is the same as the calculated amount for 1994.
In 1995, no TIF Districts /County ID's terminate and we feel their will be no
significant changes in the overall market values or any major settlements.
The table below breaks the referendum levy return down by school district:
School Calculated Estimated Percent
District 1994 1995 Change
11 $16,416 $16,416 0.0%
13 $2,648 $2,648 0.0%
14 $232,531 $232,531 0.0%
16 $59,345 $59,345 0.0%
Total : 1110,940 0.0%
ATTACHMENTS
File: \123DATA\HRA\TIF\SCH95E
I
' Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: August 31, 1994
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Agreement with Anoka County "Community Action
Program, Inc. for administration of Home
Improvement Grant Program
This year the HRA received an allocation of $70,000 from Anoka
County through the Home Investment Partnerships (HOME) Program.
The funds are to be used to provide grants to low- income residents
who need to make code repairs and basic improvements to their
homes. These grants will be made through our existing Home
Improvement Grant Program.
Last year the City subcontracted with Anoka County Community Action
Program (ACCAP), Inc. to administer the program. ACCAP performs
inspections, work write -ups and monitors rehabilitation work.
These are tasks which are extremely time and labor intensive and
ACCAP has a long history of administering the program throughout
Anoka County.
HOME program regulations stipulate that local agencies must provide
a match equal to 20% of the HOME funds. In our case, the HRA will
provide a match of $17,500 and also additional financial support
to cover administration expenses. ACCAP has agreed to administer
its services for a cost equal to 11% of the total allocation or
$9,625. Up to 5% of the total allocation (including the match) can
be used for administration purposes. However, any additional
admini- strative expenses must be paid for by the HRA. The total
shortfall for administration is $5,250.
Attached is a brief summary of the program and a copy of the
agreement.
Recommendation
Staff recommends that the HRA
Anoka County Community Action
Home Improvement Grant Program.
approve the service contract with
Program for administration of the
L
I
City of Fridley
Home Improvement Grant Program Summary
Page 2
Improvements
All properties selected for the program will be inspected to
determine the necessary repairs. In general, repairs are limited
to those which correct code violations or substandard conditions
such as:
- Electrical and plumbing systems
- Heating systems
- Windows and doors
- Health and safety (i.e. smoke detectors, handrails)
Remodeling a-- kitchen or bathroom, or other strictly cosmetic
repairs are not allowed.
selection criteria
All applicants who meet the eligibility requirements will be
considered for the program. Points will be awarded for age of
property and the applicant's income. Those with the highest scores
will receive first priority. others will be placed on a waiting
list or referred to other programs.
GF/
M -94 -532
2A
City of Fridley
Home Improvement Grant Program summary
Introduction
This special program provides financial assistance to low- income
residents who need to make basic code repairs and home
improvements. The assistance comes in the form of a no- interest,
deferred - payment grant up to $15,000.
The grant must be repaid when the home is sold, however the actual
amount to be repaid depends on how long the owner continues to live
in the home.
Year Pay Back Required
1 100%
2 90%
3 80%
4 70%
5 60%
After the 5th year, the balance of the grant or fifty percent (50 %)
must be repaid when the home is sold. To ensure the grant is
repaid, a lien is filed against the property.
Eligibility Requirements
1. Must meet income guidelines based on household size.
Household Size Income Limit
1 $17,850
2 $20,400
3 $22,950
4 $25,500
5 $27,550
6 $29,600
7 $31,600
2. Property must be an owner - occupied single family home or
duplex located in target neighborhood (see map).
3. Applicant's assets (excluding home) cannot exceed $25,000.
U�
CITY OF FRIDLEY
Attachment B
Budget Detail Form
Submitted by: Grant Femelius, Housing Coordinator Budget Year 1994
Department
HOUSING COORDINATOR FUND
Division
Total 640,000
No monies spent in 1993.
2C
Dollar
Account
Amount
City Managers
Council's
No.
Description
Requested
Recommendation
Decision
Inc./Dec.
Over Last Year
4520
Building
320,000
Total Budget
Requested
640,000
Justification:
Rehabilitation payments:
MHFA
120,000
Fannie Mae
200,000
1994 Rental Rehabilitation
142,500
1994 Community Rental Rehabilitation
1993 HOME Fund Match
110,000
17,500
Reserve
50,000
Total 640,000
No monies spent in 1993.
2C
t '
* * * Equal Opportunity Employer * * *
SERVICE CONTRACT
between
ANOKA COUNTY COMMUNITY ACTION PROGRAMp INC.
and
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF FRIDLEY
THIS AGREEMENT, made this day of , 19 ,
the date of the signatures of the parties herein notwithstanding,
by and between the Housing and Redevelopment Authority in and for
the City of Fridley, a public body corporate and politic under
the laws of the State of Minnesota (hereinafter referred to as
the "Authority!'), and the Anoka County Community Action Program,
Incorporated, a 501(c)(3) non - profit corporation, with its
offices at 1201 - 89th Avenue N.E., Blaine, Minnesota 55434
(hereinafter referred to as the "Contractor ").
WITNESSETH THAT:
WHEREAS, the Home Investment Partnerships Act, Title II of the
Cranston - Gonzales National Affordable Housing Act, Pub. Law No.
101 -625, 42 U.S.C. ss 12701 et sect., provides funds for the
purposes of carrying out eligible housing. activities; and
WHEREAS, the Authority has submitted an application for receipt
of said HOME funds; and
WHEREAS, said applications have received approval by the United
States Department of Housing and Urban Development for the
expenditure of said funds for, in part, delivery of the Fridley
Home Improvement Grant Program in the city of Fridley; and
WHEREAS, the Contractor has agreed to jointly administer said
programs for the Authority, which proposal has been accepted by
the Authority.
1
2
NOW, THEREFORE, in consideration of the mutual covenants
contained herein, the parties agree as follows:
1. TERM
The project to be accomplished by the Contractor hereunder shall
be from , 19 and shall be completed at the
earliest possible date and in any event not later than
, 19 , unless earlier terminated as
provided herein, or until all obligations set forth in this
agreement have been satisfactorily fulfilled, whichever occurs
first.
2. SERVICES TO HE PROVIDED
A. The Contractor shall do everything necessary to insure
the proper administration of the Fridley Home
Improvement Grant Program (hereinafter referred to as.
the "Program ") as approved by the U.S. Department of
Housing and Urban Development (hereinafter referred to
as "HUD ").
In accomplishing said project, the Contractor agrees to
furnish, during the terms of this agreement, the
following services:
(1) Verify title information, prepare and execute
repayment agreements with program recipients.
(2) Conduct property inspections and prepare bid
specifications for work to be performed.
(3) Assist property owner in securing estimates for
the rehabilitation work.
(4) Assist property owner to award work to
construction contractor.
(5) Insure construction contractor compliance with the
applicable HUD regulations.
E
2E
(6) Monitor performance of construction contractor
work.
(7) File /record necessary lien documents.
(8) Conduct final inspection of work completed.
B. In addition to the processing steps outlined above, the
Contractor shall perform the following duties:
(1) Compile and maintain lists of participating
construction contractors.
(2)-- Comply with the Housing Rehabilitation Procedures
Guide, as amended from time to time.
(3) Provide the Authority with monthly reports on the
status of program applications.
(4) Make payments to contractors on a timely basis, in
compliance with the Federal "three -day rule ".
(5) Acquire mechanic's liens from all contractors,
subcontractors, and material suppliers.
C. In addition, the Contractor shall proceed with the
administration of the Program as contained in the
Program Budget, attached as Exhibit A and made a part
of this contract by reference, representing
Contractor's minimum responsibilities to the extent
that said proposals have not been accomplished prior to
the date of this Contract as entered into and to the
extent said proposals do not contradict the standards
and requirements referred to above.
D. It shall be the responsibility of the Contractor to
meet all standards and satisfy all requirements
expressed in Title II of the Cranston - Gonzales National
Affordable Housing Act, Pub. Law No. 101 -625, 42 U.S.C.
ss 12701 et seQ. and any other applicable federal
3
2F
statutes, rules, or regulations established now or
hereafter, and any applicable statutes, rules,
regulations, or guidelines established now or hereafter
by the State of Minnesota or any of its agencies.
Should it appear to the Contractor at any time during
the course of implementing said project, that the work
to be done has not been explained or described in
sufficient detail, or with sufficient clarity, or
should it appear that any plan, proposal, or other
material conflict with any standards or requirements
imposed by-statute, regulation, or HUD, the Contractor
shall promptly apply to the Authority's designated
representative, Grant Fernelius. In no event shall the
Contractor proceed with administration of said project
in uncertainty. The Contractor shall comply with the
following requirements and standards of OMB Circular
No. A -122, "Cost Principles for Non Profit
Organizations" or OMB Circular No. A -21, "Cost
Principles for Educational Institutions ", as
applicable, and with the following Attachments to OMB
Circular No. A -110:
(1) Attachment A, "Cash Depositories ", except for
paragraph 4 concerning deposit insurance;
(2) Attachment B, "Bonding and Insurance ";
(3) Attachment C, "Retention and Custodial
Requirements for Records ", except that in lieu of
the provisions of paragraph 4, the retention
period for records pertaining to individual CDBG
activities starts from the date of submission of
the annual performance and evaluation report, as
prescribed in 570.507, in which the specific
activity is reported on for the final time;
(4) Attachment F, "Standards for Financial Management
Systems ";
4
2G
(5) Attachment H, "Monitoring and Reporting Program
Performance ", paragraph 2;
(6) Attachment N, "Property Management Standards ",
except for paragraph 3 concerning the standards
for real property, and except that paragraphs 6
and 7 are so modified so that
(i) In all cases in which personal property is
sold, the proceeds shall be program income,
and
(ii) Personal property not needed by the
subrecipient for HOME activities shall be
transferred to the recipient for the HOME
program or shall be retained after
compensating the recipient; and
(7) Attachment O, "Procurement Standards ".
3. PROJECT METHODOLOGY AND PROCEDURE
The Contractor, in providing the services described in Section 2
of this Contract, shall employ methods and procedures that are
deemed to be appropriate, reliable, and professional by
individuals, firms, and associations regularly engaged in work of
a similar nature. The methods and procedures employed shall
include those required by the sources of authority specified in
Section 2, herein, but shall not necessarily be limited to such
methods and procedures.
4. PROJECT EVALUATION AND ACCEPTANCE
In order that the Authority may be kept informed of the
Contractor's progress, may properly evaluate the success of the
Contractor in achieving the Contract goals, and may make
suggestions, criticisms, and recommendations to the Contractor,
the Contractor shall on a monthly basis and at other times upon
request by the Authority, send a written progress report to the
Authority's designated representative, Grant Fernelius. Said
report shall: Summarize the activities and progress of the
5
2H
Contractor to date, detailing special problems or difficulties
that have arisen during the course of the project which needs to
be brought to the attention of the Authority and summarizing any
other information, problems, or proposals which the Authority
needs to know in order to properly evaluate the actions of the
Contractor in working towards the Contract goal. The Contractor
shall thoroughly and conscientiously implement the proposals,
recommendations, and criticisms of the Authority's designated
representative, Grant Fernelius, or others designated by Grant
Fernelius, in writing, before proceeding further with the
implementation of the program so that the goals of this Contract
may be met to the satisfaction of the Authority. Any deviations
from the goals, standards, and requirements of the project as
determined by said designated representatives of the Authority
shall be corrected by the Contractor before proceeding further
with the implementation of said project.
S. PROJECT ADMINISTRATION, PERSONNEL, AND RECORDS
A. The Contractor shall engage in the implementation of
the Program, such individuals as are necessary for its
proper completion. The Contractor warrants and
represents that all of said individuals shall be
properly trained, and shall be competent and qualified
to perform the tasks assigned to them. The Contractor
shall provide the Authority with such information
regarding the qualifications of said individuals as is
required by the Authority to verify that present and
subsequent services are being rendered by competent and
trained people. All individuals engaged by the
Contractor to perform services under this Contract must
receive express approval of the Authority before
commencing any services under the Contract. Any or all
of said individuals may be regular employees of the
Contractor or may be specifically employed by the
Contractor as independent contractors to work on the
implementation of said project. However, the
Contractor shall not subcontract with any other firms,
associations, consulting agencies, or other
organizations for the implementation of the Program,
G
21
without the expressed written consent of the Authority.
B. The Contractor shall maintain records on all
individuals employed by it in the implementation of the
Program. Said records shall show the name and
qualifications of each such individual, the hourly rate
of pay for each such individual, and the number of
hours worked by each such individual, and the days on
which such hours were worked. The Contractor shall
also maintain, and complete in correct form, all other
records required by the rules, regulations, or
guidelines of HUD or by Title II of the Cranston -
Gonzales National Affordable Housing Act, Pub. Law No.
101-625, 42 U.S.C. ss 12701 et se Q. The Contractor
further agrees to maintain all such required records
for three years after receipt of final payment and all
other pending matters are closed.
6. DATA PRIVACY
All data collected, created, received, maintained, or
disseminated, or used for any purposes in the course of the
Contractor performance of this Agreement is governed by the
Minnesota Government Data Practices Act, Minnesota Statutes 1984,
Section 13.01 et. seq. or any other applicable State statutes and
any State rules adopted to implement the Act, as well as State
statutes and Federal regulations on data privacy. The Contractor
agrees to abide by these statutes, rules, and regulations and as
they may be amended.
7. NONDISCRIMINATION
A. General
The Contractor shall comply with all.federal, state, and
local laws prohibiting discrimination on the basis of age,
sex, marital status, race, creed, color, national origin,
sexual orientation, or the presence of any sensory, mental,
or physical handicap or any other basis now or hereafter
prohibited by Law. These requirements are specified in
Section 109 of the Housing and Community Development Act of
VA
2J
1974; Civil Rights Act of 1964, Title VI; Civil Rights Act of
1968, Title VIII; Executive Order 11063; Executive Order 11246;
Section 3 of the Housing and Urban Development Act of 1968; and
Minnesota Statutes Chapter 363. Specifically, the Contractor is
prohibited from taking any discriminatory actions defined in the
HUD Regulations at 24 CFR 570.602(b) (1 -3) and shall take such
affirmative and corrective actions as are required by the
Regulations at CFR 570.602(b)(4). These requirements are
summarized in the following paragraphs:
B. Program Benefit
The Contractor shall not discriminate against any resident
of the project service area by denying benefit from or
participation in any HOME funded activity on the basis of
race, color, sex, or national origin. (Civil Rights Act of
1964, Title VI; Civil Rights Act of 1968, Title VII; Section
109, Housing and Community Development Act of 1974).
C. Fair Housing
The Contractor shall take necessary and appropriate actions
to prevent discrimination on the basis of Minnesota State
law or federal law in federally assisted housing and lending
practices related to loans insured or guaranteed by the
federal government. (Civil Rights Act of 1968, Title VII;
Executive Order 11063; Minnesota Statutes Chapter 363).
D. Employment
1. In all solicitations under this Agreement, the
Contractor shall state that all qualified
applicants will be considered for employment. The
words "equal opportunity employer" in
advertisements shall constitute compliance with
this section.
2. The Contractor shall not discriminate against an
employee or applicant for employment in connection
with this Agreement because of age, marital
8
2K
status, race, creed, color, national origin,
sexual orientation, or the presence of any
sensory, mental, or physical handicap, except when
there is a bona fide occupational limitation.
Such action shall include, but not be limited to
the following: Employment, upgrading, demotion or
transfer, recruitment or recruitment advertising,
layoff or termination, rates of pay or other forms
of compensation, and selection for training.
(Executive Order 11246 as amended and Minnesota
Statutes Chapter 363.)
3. To the greatest extent feasible, the Contractor
-shall provide training and employment
opportunities for lower income residents within
the area served by block grant assisted projects
(Section 3, Housing and Community Development Act
of 1968, as amended).
E. Contractors and Suppliers
1. No contractor, subcontractor, union, or vendor
engaged in any activity under this Agreement shall
discriminate in the sale of materials, equipment,
or labor on the basis of age, sex, marital status,
race, creed, color, national origin, sexual
orientation, or the presence of any sensory,
mental, or physical handicap. Such practices
include upgrading, demotion, recruiting, transfer,
layoff, termination, pay rate, and advertisement
for employment. (Executive Order 11246 as amended
and Minnesota Statutes Chapter 363).
2. All firms and organizations described above shall
be required to submit to the Agency certificates
of compliance demonstrating that they have, in
fact, complied with the foregoing provisions;
provided, that certificates of compliance shall
not be required from firms and organizations on
contracts and /or yearly sales of less than
$10,000.
E]
2L
3. To the greatest extent feasible, the Contractor
shall purchase supplies and services for
activities under this agreement from vendors and
contractors whose businesses are located in the
area served by block grant funded activities or
owned in substantial part by project area
residents. (Section 3, Housing and Community
Development Act of 1968, as amended.)
F. Notice
1. The Contractor shall include the provisions of the
appropriate subsections A, B, C, D, and E of this
- section in every contract or purchase order for
goods and services under this Agreement and shall
send to each labor union or representative of
workers with which it has a collective bargaining
agreement or other contract or understanding a
notice advising the said labor union or worker's
representative of the commitments made in these
subsections.
2. In advertising for employees, goods, or services
for activities under this Agreement, the
Contractor shall utilize minority publications in
addition to publications of general circulation.
S. EARLY TERMINATION
This Agreement may be terminated by the Authority at any time,
with or without cause, upon 30 days written notice, delivered by
mail or in person, to the Contractor. This Agreement may be
terminated by the Authority immediately upon the receipt by the
Authority of notice of the loss of federal funding for the HOME
program. For purposes of giving notices hereunder, the address
of the Contractor is 1201 - 89th Avenue N.E., Blaine, MN 55434.
Upon termination, the Contractor shall be entitled to receive as
compensation, payment for work actually performed to the date of
termination as determined by the schedule of payment referred to
in Section 10 (Compensation).
10
2M
9. DEFAULT AND REMEDY
A. Any of the following constitutes a default on the part
of the Contractor:
(1) Failure to proceed with the implementation of the
Program at a pace reasonably calculated to
implement such program within the time limits
stated herein;
(2) Failure to conscientiously abide by the
criticisms, proposals, and recommendations of the
Authority;
(3) Failure to abide by any other term or condition of
this Contract.
B. In the event of default, the Authority shall have the
option of terminating this Contract upon written notice
of termination sent to the Contractor at its address
written above. Termination shall be effective
immediately upon receipt of notice of termination by
the Contractor, or at such later date as the written
notice shall state. Upon termination, the Authority
may recover from the Contractor any and all damages
directly or consequently arising out of the breach of
this contract or failure to perform the same by the
Contractor.
10. COMPENSATION
As complete compensation for the services to be performed
hereunder by the Contractor, the Authority shall reimburse the
Contractor on a cost basis for the necessary services provided by
the Contractor pursuant to Section 2 of this contract. In no
event shall the total payment exceed the sum of the
administrative fee column in Exhibit A. Payment by the Authority
shall be by mail and sent to the aforementioned address of the
Contractor within thirty (30) working days of billing by the
Contractor and only upon receipt of a billing statement from the
11
2N
Contractor containing such information as the Authority shall
require. The Contractor agrees that all compensation received
from the Authority will be used to compensate the Contractor only
for costs incurred in providing necessary services hereunder, and
for no other purposes. Any compensation received by the
Contractor in excess of said necessary costs shall be promptly
refunded to the Authority upon termination of this contract or
upon demand by the Authority.
11. INDEPENDENT CONTRACTOR
The relationship of the Contractor to the Authority is that of an
independent contractor. Nothing in this Contract shall be
construed so as to deem any employee or agent of the Contractor
an employee of the Authority for any purpose.
12. GOODS AND SERVICES NOT PROVIDED FOR
No claim for goods or services furnished by the Contractor not
provided for by the terms of this Contract, or by duly authorized
alterations or modifications of this Contract, will be honored by
the Authority.
13. CHANGES IN THE CONTRACT
The Authority shall notify the Contractor in writing at least
five days before any change in this Contract is to take effect.
14. ASSIGNMENTS AND SUBCONTRACTING
A. The Contractor shall not assign any portion of this
Agreement without the written consent of the Authority,
and it is further agreed that said consent must be
sought by the Contractor not less than thirty (30) days
prior to the date of any proposed assignment.
B. Any work or services assigned or subcontracted
hereunder shall be subject to each provision of this
Agreement and proper bidding procedures contained
therein. The Contractor agrees that it is as fully
12
20
responsible to the Authority for the acts and omissions
of its subcontractors and of their employees and
agents, as it is for the acts and omissions of its own
employees and agents.
15. INDEMNIFICATION
The Contractor agrees to indemnify, defend, and hold harmless the
Authority (including its commissioners, officers, and employees)
from all claims, losses, or damages which they, or any of them
shall be legally obligated to pay as a consequence of any
negligent act or omission, any intentional tort, or any violation
of the terms of this agreement, by the Contractor (including its
officers, employees, and agents) in the performance of its
services that are the subject of this agreement.
16. REVERSION OF ASSETS
Upon the expiration or termination of this agreement, the
Contractor shall transfer to the Authority any HOME funds on hand
or in the accounts receivable attributable to the use of HOIrIE
funds. In addition, at the expiration or termination of this
agreement, any real property under the Contractor's control that
was acquired or improved in whole or in part with HOME funds in
excess of $25,000.00 shall be disposed of in a manner which
results in the agency being reimbursed in the amount of the
current fair market value of the property less any portion
thereof attributable to the expenditures of non -HOME funds for
acquisition of, or improvement to, the real property. Such
reimbursement shall not be required if the conditions of 24 CFR
State Statute 570.503(b)(8)(i) are met and satisfied.
17. DISPOSITION OF PROGRAM INCOME
Upon the expiration or termination of this agreement, program
income shall be returned by the Contractor to the Authority.
13
2P
18. INSURANCE
The Contractor shall comply with the following insurance
requirements:
A. Public Liability Insurance
The Contractor shall obtain and maintain continuously
during the term of this agreement general liability
insurance of an amount not less than One Million and
no /100 ($1-1000,000.00) Dollars which covers bodily
injury and property damage and an umbrella excess
liability policy of Three Million and no /100
($a,000,000.00) Dollars and provide proof of Worker's
Compensation Insurance pursuant to the Statutes of the
State of Minnesota. The general liability insurance
policy and umbrella excess liability policy shall name
the Authority as an additional insured.
B. Proof of Insurance
The Contractor shall provide certificates of insurance
required under this section, or, upon request of the
Authority, duplicates of the policies as evidence of
the insurance protection afforded. Such insurance
policies shall not be reduced or cancelled without
sixty (60) days prior written notice to the Authority.
19. ENTIRE AGREEMENT /REQUIREMENT OF A WRITING
It is understood and agreed that the entire agreement of the
parties is contained herein and that this Contract supersedes all
oral agreements and negotiations between the parties relating to
the subject matter hereof as well as any previous Contract
presently in effect between the Authority and the Contractor
relating to the subject matter hereof. Any alterations,
variations, modifications, or waivers of-the provisions of this
Contract shall be valid only when they have been reduced to
writing and duly signed by the parties.
14
20
20. EXHIBITS
The following attachments listed below are hereby incorporated in
this agreement and made a part hereof:
Exhibit A - Program Budget
Exhibit B - Certification
Exhibit C - 24 CFR 85; Contracting with small and minority
firms, women's business enterprise, and labor surplus
area firms.
IN WITNESS WHEREOF, the parties here hereunder set their hands as
of the date written below:
HOUSING AND REDEVELOPMENT AUTHORITY ANOKA COUNTY COMMUNITY
IN AND FOR THE CITY OF FRIDLEY ACTION PROGRAM, INC.
By
Its:
Date:
By_
Its:
Date:
Approved as to from:
Anoka County
15
2R
By
Its•
Date:
By
Its•
Date:
Exhibit A
Program Budget
Total
of Available
Source Total Admin. Total to Program
1994 HOME $70,000
1994 HRA Match $17,500
Sub -Total $87,500
* HRA Admin. Support
Totals $87,500
$3,500 5.0%
$66,500
$875 5.0%
$16,625
$4,375
$83,125
$5,250
$9,625
$83,125
Notes:
( *) Funds are to be used to cover the shortfall between
the administative allowance of $4,375 and the actual
cost of administration $9,625.
2S
Exhibit B
CERTIFICATION
The Undersigned, on behalf of the Agency, certifies, to the best of his or her knowledge and
belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the
undersigned, to any person for influencing or attempting to influence an officer or employee of
any agency, a Member of Congress, an officer or employee of Congress, or an employee of a
Member of Congress in connection with the awarding of any Federal contract, the making of any
Federal grant, the making of any Federal loan, the entering into of any cooperative agreement,
and the extension, continuation, renewal, amendment, or modification of any Federal contract,
grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any
person for influencing or attempting to influence an officer or employee of any agency, a Member
of Congress, an officer or employee of Congress, or an employee of a Member of Congress in
connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned
shall complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in
accordance with its instructions.
(3) The undersigned shall require that the language of this certification be included in the
award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts
under grants, loans, and cooperative agreements) and that all subrecipients shall certify and
disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this
transaction was made or entered into. Submission of this certification is a prerequisite for making
or entering into this transaction imposed by section 1332, title 31, U.S. Code. Any person who
fails to file the required certification shall be subject to a civil penalty of not less than 510,000 and
not more than S100,000 for each such failure.
AGENCY
By:
Its:
By:
Its:
Date: Date:
2T
Exhibit C
(24 CFR 85)
Administrative Requirements for Grants and
Cooperative Agreements to State, Local & Federally
Recognized Indian Tribal Governments
le; Controcang with small and
min,,ri:v�irrns. women's business
enter prise and labor surplus area ji ns.
(1) The grantee and subgrantes will take
all i•eces• -y affirmative steps to assure
that minority firms. women's business
enterprises• and labor surplus area firms
are used when possible.
(1) Affirmative steps shall include:
(i) Placing qualified small and
minority businesses and women's
business enterprises on solicitation lists:
(ii) Assuring that small and minority
businesses. and women's business
enterprises are solicited whenever they
are potential sources:
(iii) Dividing total requirements. when
economically feasible. into smaller tasks
or quantities to permit maximum
participation by small and minority
business. and women's business
enterprises:
(iti•) °s :ablishi ng delivery schedules.
-here the regcisetae :: permits. whic
encn;:. age participation by s -all and 1
rn :norit} business. and women 's 1
business e::et-prses: i
(t; Using the se.-vices and essistan ce f
ci ::,e Sm Business Tdmi.^.tstration. t
an= the t`.inority Business Deveiopmen:
Agen=y c.-' -;-e Depa. -.-:e. c Cornme: c_.
c (vi) hec :-M t ^e - ^:e
subcon*,acts are . *r, oe let. to take tn_
of i- native steps listed in pa:agrap s I
W(V fil :o of this section.
2U
e
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: August 31, 1994
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Authorization to Purchase 677 Hugo St. and
683 Glencoe St. under Scattered Site Acquisition
Program
Staff has negotiated with the owners of these properties and is
requesting authorization from the HRA to enter into purchase
agreements. If approved, this will bring the total number of
acquisitions to six for this year (two more than our goal).
Both properties will be cleared and in the case of 677 Hugo St. the
lot sold to a builder. Please note that 683 Glencoe St. is not a
buildable lot and could not be resold as a new home site.
677 Hugo St.
This home, which was built in 1948, is located one block east of
Broad Avenue in the Riverview Heights neighborhood. The house has
one bedroom and bath and a total living area of 670 sq. ft. The
owner was in the process of making improvements, when it was
discovered that the rear section of the home was severely
deteriorated. Staff learned of the situation because the owner had
been approved for a home improvement grant.
The property was appraised by Appraisal Engineering Bureau, Inc.
for $40,000. The owner agreed to sell for $43,000 which is within
our negotiating guidelines. The lot is 75 x 110 and is considered
buildable. A location map is attached for your reference.
683 Glencoe St.
The property is located just east of Riverview Terrace. A small
single family home and garage occupy the site. The home and
garage are currently used for storage and the City has had several
complaints concerning materials stobed outside.
Scattered Site Acquisition Memo
The property was appraised by Appraisal Engineering Bureau, Inc.
for $22,500 and the owner agreed to sell for $18,000. A location
map is attached for your reference. We should also note that the
owner has requested use of the garage until he can construct a new
one at his home several block away. He would be willing to rent
the garage from the HRA until next spring at the latest. We have
indicated that this would be acceptable if agrees to sign a lease.
Photographs of both properties will be presented at the HRA
meeting.
Recommendation
Staff recommends that the HRA authorize the following:
1) Purchase of 677 Hugo St. NE from Debra Taylor for $43,000.
2) Purchase of 683 Glencoe St. NE from John Rice for $18,000.
3) The.Executive Director to enter into purchase agreements
for said properties.
GF/
M -94 -533
3A
Botrowa
EMM Address 677 Hugo Street NE
city Fridley County Anoka state
Lmdaclkw Fridley Housing and Redevelopment Authori Aftw 6431 niversity Avenue M 67 Hugo St.
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e
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: September 2, 1994
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Approval of Request for Qualification for
- Southwest Quadrant Redevelopment
Since the joint City Council and Housing & Redevelopment
Authority meeting on August 22, 1994, the following has been
initiated:
1. We have talked to developers regarding their opinions about
the additional 4 acres of project area if the apartments
were to be acquired.
2. A meeting with Publicorp has been established for September
8, 1994 to discuss in_ detail whether the Brooklyn Park
equity participation approaches would be applicable for the
apartments along Satellite Lane.
3. Maxfield Research Group has been contacted to provide an
update on the townhome and senior /empty- nester apartment
market.
4. A site planner and architect have been contacted to initiate
the design review process (see separate item in agenda).
We have spoken to Rottlund, Bruggeman Companies, and Jim Winkels
regarding the option to add 3.8 additional acres to the
redevelopment area. All of them indicated that it would not
significantly increase the potential value of the townhome. It
would dictate a higher value townhome in relation to other values
on the site because of the additional area and relationship to
the existing neighborhood. They cautioned, however, that the
City should not expect a value in excess of $125,000 - $130,000.
Maxfield Research Group is currently updating the market research
for us at this point, so we will have additional information
available to mail out with the RFQ. Further, all of the
developers would be interested in the additional acreage because
it adds density and the number of units to the project. All said
that they would be willing to proceed with the 10 acre site if it
W
Approval of RFQ for SQ Quadrant
September 2, 1994
Page 2
were determined that the apartment area was not acquired.
All agreed that rehabilitation and upgrade of the apartments
should occur in order to provide compatibility between the new
neighborhood and the apartments.
Rottlund would prefer to use the entire acreage for a townhome
development. If they had to, they would work with the City if a
senior housing apartment project was included. Winkels indicated
that he would also be willing to cooperate with the City on
senior housing. Bruggeman also agreed to the senior housing
element pending review of the market research. Bruggeman also
indicated that at one time, they were beginning to move into
senior housing construction, but prioritized their business on
townhomes.
A draft RFQ has been prepared. I have sent the draft to Jim
Casserly and Dave Newman, and would like feedback from the HRA.
The outline and material was based on RFQ's from the City of
Roseville, White Bear Lake, and New Brighton. Not included at
this time are the attachments such as the maps and a color aerial
photo of the Southwest Quadrant. Those will be completed as soon
as possible.
Recommendation
Staff recommends that the HRA authorize the Executive Director to
finalize the RFQ pending the HRA's comments, and to mail it to
Rottlund Townhomes, Bruggeman Companies, Twin City Townhomes
(Harstad), Jim Winkels of Bel -Aire Construction, Larry Laukka of
Laukka and Jarvis, Brighton Development Corporation, and other
potential senior housing developers.
BD /dn
M -94 -530
;U
CI7YOF
FRIDLEY
FRIDLEY MUNICIPAL CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY. MN 554 ?2 • (6121571-3450 • FAX (612) 571 -1287
September 1, 1994
Mary Bujold HAND DELIVERED
Maxfield Research Group
620 Kickernick,
430 - 1st Avenue North
Minneapolis, MN 55401
Dear Ms. Bujold:
The Housing and Redevelopment Authority asked me to contact you to
provide a market update on owner - occupied townhomes and senior and
empty- nester apartments as they relate to the redevelopment of the
southwest corner of Mississippi Street and University Avenue. The
redevelopment site is currently ten acres in size. The HRA will
be mailing a RFQ or Request for Qualification to the development
community in mid - September. We would like to attach your market
analysis to the RFQ's to provide the development community with a
current synopsis of the market for these land uses.
Please provide an estimated number of townhome units the market can
support and townhome values. Also, in terms of the senior and
empty- nester market, please specify the number of units that the
local market can support in the next ten years. As you know,
Westminster constructed a 50 unit senior building on Fifth Street
in 1994. This was constructed with Section 202 funds from the
Federal government, and therefore, is aimed at the very low income
market.
The City is also evaluating two options regarding the apartments
just south of the redevelopment site. One option is to provide the
owners with rehabilitation monies to modernize and update the
units, and the other option is acquisition and demolition of the
apartments to add 3.8 acres to the redevelopment project area.
What impact would each of these options have on the market and the
value of the redevelopment parcel? Please address this issue in
a separate memo since I am not sure which option the City will
choose at this point.
The anticipated timeframe to mail the RFQ is by September 15, 1994.
The draft RFQ will be reviewed with the HRA on September 8, 1994.
Please submit your memo to my attention prior to September 15,
1994.
N
Mary Bujold
September 1, 1994
Page 2
Thank you for your prompt attention.
Sincerely,
c,--'Barbara Dacy
Community Development Director
BD: da
C -94 -235
4C
REQUEST FOR QUALIFICATIONS
CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY
SOUTHWEST QUADRANT OF UNIVERSITY AVENUE AND MISSISSIPPI STREET
PROJECT SUMMARY
The proposed redevelopment site is located in the southwest corner
of the University Avenue and Mississippi Street intersection. The
property is an important part of the Center City redevelopment
project area created by the City in 1979. The intersection and the
four corners around it represent the Center or Downtown of the
Fridley community.
The City is seeking -a developer or team of developers to develop
the ten acre site for owner occupied townhomes and possibly a
senior /empty nester mid rise apartment building. The site will be
prepared for development and all existing buildings will be
demolished. Utilities are available to the property.
The following information clearly outlines the City's goals for the
property and demonstrates the City's commitment to cooperate with
a developer to accomplish the desired redevelopment objectives.
Market information, demographics, and a proposed redevelopment
schedule is also included.
It is the intent of this RFQ to determine a developer's interest,
experience, and financial capability for the project. Detailed
site "proposals" are not required nor is there a request for a
purchase price or bid.
Please review the following materials and feel free to call Barbara
Dacy, Community Development Director at 572 -3590 if you have any
questions. The submission deadline for requested materials is 5:00
pm, October 3, 1994.
e
RFQ
page 2
SITE HISTORY
The project area is located within Tax Increment Financing District
#1 which was certified in 1979. The City's redevelopment plan
identifies the district as the Center City District. The Center
City district includes the land area in the immediate vicinity of
the University Avenue and Mississippi Street intersection plus the
land area now occupied by the Village Green residential development
and the land area east of University extending south to 61st Avenue
and west of 5th Street.
During the 1980s, the HRA moved aggressively to redevelop the
southeast and northwest corners of the intersection. Target
Northern Operations Center, Fridley Plaza Office Building, and
Fridley Plaza Clinic were all constructed as a result of the HRA's
redevelopment program. Holly Center, located in the northwest
corner of the intersection, was remodeled and the parking area
revamped to provide adequate parking areas, landscaping, and modern
light standards.
Also during that time, the HRA began to acquire some of the parcels
in the project area in preparation for redevelopment. In fact, the
HRA has reviewed several redevelopment proposals for the project
area since 1984. Lou Lundgren and Associates proposed a mixed use
development of senior housing, commercial retail, and offices.
Falling victime to the economic issues of the mid 1980s, the
project did not proceed. Since that time, several developers have
expressed interest for the site as a commercial location but none
have proceeded forward.
In 1991, the HRA approved a redevelopment plan for the northeast
corner of the intersection for a 25,000 square foot shopping
center. The developer is currently seeking major tenants for the
project.
SITE INFORMATION.
The project area is surrounded by a mixture of residential and
commercial uses:
North: Holly Center Shopping Center and single. family
residential
South: 76 units of multiple family and single family
residential, including Fridley Covenant Church
East: Office uses on east side of University Avenue
including the Target Northern Operations Center,
Fridley Municipal Offices, Fridley Plaza Office
Building, and Fridley Plaza Clinic
ULZ
RFQ
page 3
West: RAO Manufacturing and five twin homes
Mississippi Street is maintained by Anoka County. In 1992, the
County upgraded the intersection to provide for projected traffic
growth until the year 2010. A median was constructed on
Mississippi Street extending about 300 feet west of the
intersection. During the hearing process for the project, the
neighborhood to the north expressed a desire for a signalized
intersection where Second Street intersects Mississippi Street.
Second Street is located opposite the northwest corner of the
project area.
Similarly, the neighborhood to the south during the Lundgren
project proposals requested access through the project area to
Mississippi Street. In the interim, the City constructed a
"temporary" extension of Third Street from Satellite Lane until the
project area is redeveloped. A street connection through the site
from the south will be required. The exact alignment can be
negotiated.
Adequate water and sewer services are available to the project
area. The developer will have to comply with the City's stormwater
management requirements as well as obtain project approval from the
Rice Creek Watershed District. Detention ponds handling 100 year
storm events will be required. There are no wetlands in the
project area.
It is expected that electric, cable, phone and other services will
be installed underground.
PROPOSED DEVELOPMENT GOALS
During the last eight months, the City Council and the HRA have
reevaluated its goals for the project area. The commercial element
once anticipated in the 1980s does not seem to be realistic given
the current market situation and the fact that the project area is
on the west side of University Avenue, opposite the "going home"
direction. City staff interviewed a number of housing developers
and conducted a tour of four townhome developments. As a result
of this research, the following are the goals for the project area:
1. Owner occupied townhomes with a minimum value of $80,000.
2. Senior /empty nester apartments in a mid rise building
consisting of 40 to 60 units.
3. Site and building design which is compatible with the
design criteria developed by the City Council.
4F
RFQ
page 4
The HRA has hired a consultant planner and architect to develop
exterior building design criteria and to develop alternative site
plans to clearly define for the developer the City's design goals.
The selected developer will develop the site plans and other
necessary submittals for development approval but the plans must
include the elements included in the City's design goals. The
design process is currently underway and will be completed prior
to developer selection.
SITE CONTROL AND PREPARATION
The HRA currently owns 7 out of the 10 acre project area. The HRA
is currently negotiating with the remaining owner to acquire the
3 acres immediately adjacent to University Avenue which is now
occupied by the car wash, strip mall, and Burger King. The HRA is
also evaluating acquisition and demolition of the apartment
buildings immediately south of the project area along Satellite
Lane. Acquisition of these properties would add 4 acres to the
project area.
The HRA intends to acquire all properties associated with the
project area, demolish existing buildings, remove existing asphalt
surfaces, and complete minor grading prior to conveyance or sale
of the project area.
MARKET ANALYSIS
Maxfield Research Group has provided a market analysis of the
townhome and senior /empty nester market for the project area
(attached). Maxfield Research Group also provided a city wide
market analysis of Fridley in 1991. An Executive Summary is
available upon request.
The study revealed that Fridley has several stable and appealling
neighborhoods. Fridley schools are well respected and nationally
recognized for leadership in academic excellence. The population
is aging consistent with other first ring suburban trends
generating a demand for empty nester and senior housing. Fridley's
single family housing stock is well positioned for first time
homebuyers with a median home sale price of $85,000. The
construction of 358 apartment units in 1988 also produced a higher
than expected number of individuals aged 18 through 34 in the 1990
census. These individuals may be seeking home ownership
opportunities that townhomes can provide.
SCHEDULE FOR RFQ REVIEW
1. Submit RFQ responses by October 3, 1994 at 5:00 pm.
4G
RFQ
page 5
2. Initial review by staff and HRA to select top two candidates
at the October 13, 1994 meeting.
3. Meet top candidates to discuss design goals between October
14, 1994 and October 31, 1994.
4. Select developer at November 10, 1994 HRA meeting; City
Council to concur at November 14, 1994.
SUBMISSION REQUIREMENTS
Please submit- dne 8 1/2 X 11 copy of the following unless there are
oversized copies; please submit 13 copies of any oversized
materials:
1. Developer name, address, contact person, phone and fax
numbers.
2. Proposed name of project Manager and resume of experience.
3. Names, addresses, and phone and fax numbers of architects,
planners, marketing consultants, leasing agents, or
contractors anticipated for the project. Include resumes of
key individuals.
4. List of development projects completed or in- process during
.the last three years, including a very brief description of
each.
5. Written discussion of the developer's perception of the market
potential for the project area specifically addressing the
owner occupied townhome and senior /empty nester market. The
discussion should include potential unit prices, values,
amenities, density requirements and other relevant
information.
6. Description of experience in working with the public sector
especially in regards to redevelopment areas. Also discuss
experience working with prescribed design criteria.
7. Provide two bank references including the name of the bank or
financial institution, address, phone and fax numbers, and
contact person.
8. Provide a current financial statement of the developer and
partners (this information will be kept confidential).
9. Brief description of what the developer would expect from the
4H
RFQ
page 6
HRA with respect to public improvements, site improvements,
environmental assessments and related expenses.
10. Description of two projects completed within in the last three
years, including an explanantion of the process, project
financing, brochures, photographs, artists renderings, current
financial statements, and so on. Developers might select
these two projects based on their similarity to this RFQ,
uniqueness of design, involvementof the public sector or other
issues.
11. Provide five references including tenants or owners of
completed development projects and any references from other
cities.
ATTACHMENTS (TO BE PROVIDED)
1. Metro area location map
2. Aerial phota
3. Property map
4. Tax Increment Financing District and Redevelopment Area map
5. Market research for project area
6. Demographic data sheets
41
SELECTION CRITERIA FOR
• Developer Experience. An important consideration is the
experience the developer has had in developing similar
projects in the Minneapolis -St. Paul metropolitan area,
especially in suburban communities.
• Financial Resources. Since the developer will be selling,
leasing or building various buildings constructed on the
Site, the ability of the developer to finance, lease and
construct is important.
• Understanding of the Market. Since the City desires that
any development of the Site be market - driven, the City will
evaluate proposals based on the developer's ability to
thoroughly know and understand the market demand for a
development project.
• Response to the City's Design Criteria. The City will
consider the developer's ability to incorporate the desired
design features into the development proposal.
• Marketing Budget. The City is willing to hold the land
until development occurs. However, the City is anxious that
the Site be aggressively marketed to reduce the holding
costs and maximize the Site's tax base. As a result, the
commitment of the developer's personnel, the amount of funds
and other resources are important considerations.
Experience with the Public Sector. While not as significant
as other criteria, it is helpful if the developer has worked
with the public sector in development projects.
4J
TO: FRIDLEY H.RA
FROM: CITY OF FRIDLEY
RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES
AUG 1994
. ............................... _ ..... _. ... .
................ ...............................
AUG 1:984 .. ;;
......... .....::...::...................
Account #'s for
Account #'s for
236- 0000 - 336 -3000
HRA's Use
City's Use
ADMINISTRATIVE BILLING:
236- 0000 - 336 -3000
FILM — PHOTOS
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 Micro S MW oornputers)
236- 0000 -336 -3000
US WEST — TELEPHONE SERVICE
TOTAL ADMINISTRAT E- BILLING :
460- 0000 -430 -4107 14.984.00
236- 0000 -336 -3000
OPERATING EXPENSES:
POSTAGE BY PHONE
262- 0000 - 430 - 4332
56.96
236- 0000 - 336 -3000
LUMBER — BUILDING SUPPLIES
262- 0000 - 430 - 4510
63.22
236- 0000 - 336 -3000
FILM — PHOTOS
460- 0000 -430 -4221
13.74
236- 0000 -336 -3000
POSTAGE BY PHONE
460- 0000 - 430 -4332
16.01
236- 0000 -336 -3000
AT&T — LONG DISTANCE
460- 0000 - 430 -4332
0.45
236- 0000 -336 -3000
US WEST — TELEPHONE SERVICE
460 -0000- 430 -4332
13.61
236- 0000 -336 -3000
INSURANCE — NON PERSONNEL ALLOC JUL 94
262- 0000 - 430 - 4336
487.00
236 - 0000 -336 -3000
INSURANCE — NON PERSONNEL ALLOC JAN —JUN
262 - 0000 - 430 -4336
2,921.00
236 - 0000 - 336 -3000
AMERICAN EXPRESS — BREAKFAST
262- 0000 - 430 - 4337
54.34
236- 0000 -336 -3000
INSURANCE — NON PERSONNEL ALLOC JUL 94
450 -0000 -430 -4336
18.00
236 - 0000 - 336 -3000
INSURANCE — NON PERSONNEL ALLOC JAN —JUN
450- 0000 -430 -4336
103.00
236 - 0000 -336 -3000
INSURANCE — NON PERSONNEL ALLOC JUL 94
455- 0000 - 430 - 4336
33.00
236- 0000 -336 -3000
INSURANCE — NON PERSONNEL ALLOC JAN —JUN
455- 0000 - 430 - 4336
202.00
236- 0000 - 336 -3000
TOTAL OPERATING EXPENSES: 3.982.33
BENEFITS EXPENSES:
CITY OF FRIDLEY — HEALTH INS 262 -0000- 219 -1002 0.00 236 -0000- 219 -1002
CITY OF FRIDLEY — DENTAL INS 262 -0000- 219 -1100 0.00 236 -0000- 219 -1100
CITY OF FRIDLEY — AUG LIFE INS 262 -0000- 219 -1200 4.25 236 -0000- 219 -1200
TOTAL BENEFITS EXPENSES:
TOTAL EXPENDITURES —
AUG 1994
File: \123DATA\HRA \Ml3lLUNG.%*1 Details
5
4.25
$18.970.58
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Community Development, Department
HOUSING AND REDEVELOPMENT AUTHORITY
DATE: September 2, 1994
City of Fridley
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Update on ACCAP Projects
Pursuant to the HRA's authorization to provide rehabilitation
assistance for the three multiple family properties in the Hyde
Park area, I met with Steve Klein and ACCAP's consultant, Rhonda
Lundquist, to negotiate the HRA's participation in the Hyde Park
project. The conclusion of our meeting was that the Fridley HRA
will provide a $45,000 low interest loan at 5% interest over 30
years, and will provide a grant of $45,000. The HRA's
participation would amount to 50% of the rehabilitation costs, up
to $90,000.
This represents a "middle" position from the direction given
to
staff by the HRA at its last meeting. The initial offer was
to
provide a $45,000 loan and the remaining $45,000 would be due
on
sale of the property. ACCAP responded that they would like the
loan at 0% and the remaining $45,000 forgiven, or the entire
$90,000 due on sale. I responded back with another approach
which would forgive $45,000 but-the $45,000 loan had to carry
a
5% interest rate over a 30 year amortization period. In this
manner, funds are returned to the HRA. The final fall -back
position authorized by the HRA was to agree to $90,000 due on
sale; however, Jim Casserly advised me that the present value
of
$90,000 due on sale 'is approximately $23,000. Therefore, the
HRA
is money ahead with the proposed approach. I have attached a
copy of the Executive Director's letter.
After consultation with its consultant, ACCAP decided not to
pursue application to MHFA for acquisition of the Channel Road
properties. The purpose of that project was to target large
families. The consultant recommended that the Hyde Park project
be its only application because that met the intent of the
funding guidelines better. I asked ACCAP to pursue acquisition
of the Channel Road buildings anyway in hopes that we could
participate in some type of rehabilitation. Unfortunately, ACCAP
was unable to negotiate a financing arrangement with the owners
such that ACCAP could afford to own the properties with its own
funding sources.
7
Update on ACCAP Projects
September 2, 1994
Page 2
In the meantime, however, ACCAP did execute a purchase agreement
for a four -plex at 380 - 57th Place for a transitional housing
project. ACCAP owns and manages another four -plex on Mississippi
Place west of East River Road for a similar purpose. MHFA has
transitional housing funding available to acquire and
rehabilitate the units. Since the Channel Road projects dropped
out, I agreed to have the Executive Director write a letter
agreeing to some type of participation of rehabilitation
assistance subject to HRA approval at the September 8, 1994
meeting. The option that we proposed in the letter is the
initial approach that the HRA asked us to negotiate with ACCAP on
the Hyde Park properties. The HRA assistance will be up to 50%
of the rehabilitation costs; one -half of the assistance will be
financed and the remaining will be due on sale.
Unless otherwise directed, we will continue to work with ACCAP on
these projects. We hope to hear from MHFA this month about the
results of their funding decisions.
Please note that the City Council at its meeting on
1994 will be considering a resolution to endorse the
cooperative tax status on the Hyde Park properties.
plex on 57th Place will not be a cooperative.
BD /dn
M -94 -528
7A
September 6,
leasehold
The four-
CIlYOF
FRIDLEY
FRIDLEY MUNICIPAL CENTER - 6431 UNIVERSITY AVE. N.E. FRIDLEY. MN 55432 - (612) 571 -3450 - FAX (612) 571 -1287
August 23, 1994
Ms. Kathryn Hadley
Commissioner -
Minnesota Housing Finance Agency
400 Sibley Street
Suite 300
St. Paul, MN 55155
Dear Commissioner Hadley:
I am writing this letter in support of the Anoka County Community Action
Program's ( ACCAP) application for funds under the Affordable Rental Investment
Fund. The proposal is to purchase one four -unit and two seven -unit apartment
buildings to provide low income housing in Fridley.
The apartment buildings are located in a neighborhood in Fridley known as Hyde
Park. The Hyde Park neighborhood was identified in the City's comprehensive
plan as a "primary focus neighborhood." A recent 1991 market study completed
by the Maxfield Research Group also identified this area as in need of
rehabilitation and redevelopment. ACCAP's proposal to acquire, rehabilitate and
manage these buildings is consistent with the City's comprehensive plan and
housing program.
City support of this project will be provided in the following ways:
1. On September 6, 1994, the Fridley City Council will be asked to
approve a resolution endorsing the tax status of the properties as
"leasehold cooperative" properties. Those properties are taxed at a
rate which is equivalent to the homestead rate. The tax savings will
help ACCAP to provide affordable housing.
10_�
Ms. Kathryn Hadley
August 23, 1994
Page Two
2. At the August 11, 1994, Housing and Redevelopment Authority
meeting, rehabilitation assistance was authorized for this project. The
Fridley HRA will provide a grant of $45,000 and will also provide a
$45,000 low interest loan (5 percent over 30 years). The HRA's
participation represents about 50 percent of the rehabilitation costs.
Anoka County continues to have a serious shortage of low income housing
options, including_ low cost rental housing. The purchase of these apartments
would allow the needs of individuals and families for decent, low cost housing to
be met.
The City of Fridley has worked cooperatively with the Anoka County Community
Action Program. ACCAP is an effective provider of housing. I very strongly
encourage the award of grant funds to this project.
Sincerely,
William W. Burns
City Manager /Executive Director of HRA
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C17YOF
FRIDLEY
FRIDLEY MUNICIPAL CENTER • 6431. UNIVERSITY AVE. N.E. FRIDLEY. MN 55432 • (612) 571 -3450 • FAX (612) 571 -1287
August 23, 1994
Ms. Kathryn Hadley
Commissioner
Minnesota Housing
400 Sibley Street
Suite 300 -
St. Paul, MN 55155
Finance Agency
Dear Commissioner Hadley:
I am writing this letter in support of
( ACCAP) application for funds under
is to purchase a four unit apartment
transitional housing.
the Anoka County Community Action Program's
the Transitional Housing Program. The proposal
building at 380 - 57th Place in Fridley for use as
The apartment building is located in City View Addition, just northeast of the University
Avenue and 57th Avenue intersection. This was identified as a "primary focus"
neighborhood in the City's comprehensive plan. Acquisition, rehabilitation and
management by ACCAP of this structure is consistent with the goals stated in the City's
comprehensive plan and housing program.
Subject to the approval of the board members, the Fridley Housing and Redevelopment
Authority will provide assistance equal to 50 percent of the rehabilitation costs. One -half
of the assistance will take the form of a 30 year loan financed at a favorable interest rate.
The other half of the assistance will also take the form of a loan that will not be repayable
until the property is sold.
We have enjoyed working with the Anoka County Community Action Program. ACCAP
is an effective provider of housing and we look forward to working with them on this
project as well. I strongly encourage the award of grant funds to this project.
Sincerely,
William W. Burns
City Manager /Executive Director of HRA
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Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: September 2, 1994
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Update on Design Process for Southwest Quadrant
I am meeting with Michael Gair of McCombs, Frank, Roos, and
Associates and Gar Hargans from Close and Associates, Inc. on
Friday, September 2, 1994 regarding the design review process for
the Southwest Quadrant. Mr. Gair would be responsible for
preparing alternative development plans for the Southwest
Quadrant and Mr. Hargans would be responsible for preparing
alternative building design elements for the Planning Commission,
City Council, and HRA to consider. I will update the HRA at
Thursday's meeting regarding the outcome of our meeting. In
preparation of that meeting, I developed a preliminary Scope of
Work which will also be reviewed by the Planning Commission.
From the joint City Council and HRA meeting on August 22, 1994, I
heard a* concern about trying to identify what the City wants to
see in terms of site design and building appearance for the
property. Part of the purpose of Friday's meeting is to discuss
the preliminary Scope of Work that I have developed and to review
the process to determine if, based on the consultant's
experience, is appropriate. Once the City and the HRA have
defined what it would like to see, the conclusion of this process
would match the timing of the conclusion of the Request for
Qualification process. In that way, we can take our design goals
to the negotiating table with the developer. So far in our
meetings with the development community, they are receptive to
this approach and appreciate our intent to clearly define what we
want.
I also hope to have for the HRA an estimated cost of a contract
for your review. I would be happy to make modifications to the
Scope of Work, but would like authorization to have the Executive
Director execute a contract as soon as possible.
BD /dn
M -94 -526
Leo]
SCOPE OF WORK FOR SOUTHWEST QUADRANT DESIGN PROCESS
Purpose: The architect and site planner will work in tandem to
produce three alternative development scenarios for the
Southwest Quadrant, and a list of building exterior
design standards. It is important that the costs of
the building design standards be clearly defined so
that the HRA can determine what additional cost impacts
there would be as the result of the design issues.
I. Architect
A. Prepare three alternatives for exterior design elements
of proposed buildings in the redevelopment site.
1. -- Townhome units
a. Exterior facia
b. Colors of exterior elements
C. Roof design
d. Window design
e. Porches
f. Underground versus surface parking
g. Height of buildings
2. Apartment Buildings
a. Exterior facia elements
b. Colors of exterior materials
C. Building design
d. Height of building
e. Underground versus surface parking
B. Prepare cost estimates for each alternative.
C. Prepare "presentation boards" for public meetings.
D. Prepare written narrative, if necessary.
II. Site Planner
A. Prepare six alternative concept plans for the overall
site design; three of which are based on each of the
MOOA
Scope of Work for Southwest
Quadrant Design Process
Page 2
following scenarios:
1. Existing 10 acre redevelopment site.
2. Potential 14 acre site if apartment buildings on
Satellite Lane are acquired.
B. Address the following elements in the site design:
1. Locate owner - occupied townhomes
2. Locate senior and empty- nester apartment
buildings.
3. Provide a public street connection from 3rd Street
to Mississippi Street.
4. Noise abatement from University Avenue.
5. Pedestrian connection to surrounding areas,
including other developments in the intersection,
existing bikeway /walkways, the neighborhood to the
south, and transit stops.
6. Light standards for development.
7. Fencing.
8. Building elevations facing Mississippi Street,
University Avenue, and Satellite Lane.
9. General landscaping treatments.
C. Prepare cost estimates for items B4 - B9.
D. Prepare "presentation boards" for public meetings.
E. Prepare written narrative if necessary.
III. Potential Timeline
A. Present alternatives and building exterior design
alternatives to the Planning Commission on Wednesday,
September 21, 1994.
B. Conduct a follow -up session with the Planning
Commission on October 5, 1994 regarding any comments
from the September meeting.
. f
Scope of Work for Southwest
Quadrant Design Process
Page 3
C. Present Planning Commission recommendations to the HRA
on October 13, 1994.
D. Assist City staff in meeting with top candidates from
the RFQ process to negotiate ultimate development
design.
E. Attend HRA meeting on November 10, 1994 if necessary.
Developer to be selected at that meeting.
F. Present Planning Commission recommendation to the City
Council on November 14, 1994.
G. Help facilitate neighborhood meeting in December or
January to gain input on design issues for the site.
The meeting is intended to solicit general feedback on
design issues before finalizing development plans.
H. Assist City staff in review of developer - submitted
plans in order to determine consistency with the City's
design goals.
Iv. Cost of Contract
A. Identify hourly rates of all individuals involved with
the process.
B. Identify potential contract costs.
C. Provide sample contract.
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Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: September 1, 1994
TO: William W. Burns, Executive Director
FROM: Barbara Dacy, Community Development Director
SUBJECT: HRA - Dairy Queen Demolition
Pursuant to the HRA direction at the August 11, 1994 meeting, I
have attempted to contact Mr. Fitch to tour the existing Dairy
Queen Building to determine the extent of the demolition.
Hopefully, I will have an update in time for Thursday's meeting.
In the meantime, the Engineering Department is preparing
specifications for demolition of the building. We will take quotes
for demolition of the building. I anticipate that the cost will
probably be less than $10,000.00. Upon receiving the lowest quote,
we will proceed to have the building demolished. Also, included
in the contract would be removal of the pavement on the Dairy Queen
site, as well as the remaining pavement from the Rice Plaza
building which was left behind for the drive -thru for the Dairy
Queen. Unless otherwise directed, I will proceed as outlined
above.
BD:da
M -94 -523
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Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: September 2, 1994
TO: William Burns, Executive Director of HRA
FROM: Barbara —Dacy, Community Development Director
SUBJECT: Update on Housing Conditions Study
We applied for an MHFA grant to help pay for the costs of
completing a housing conditions study to update the 1976
conditions study that was done by the City. Unfortunately, we
did not receive funding from MHFA (we requested $10,000). We
are, however, proceeding to complete the conditions study by
utilizing the Planning Intern to conduct a windshield survey of
the condition of all single family and multiple family
properties. Grant Fernelius, Housing Coordinator, has worked
extensively with the Assessor's office to develop standards to
evaluate the condition of residential properties.
Concurrent with that process, the Community Development
Department staff is completing a land use analysis to identify
redevelopment or other projects which would necessitate
acquisition by the HRA or the City. This study is in direct
response to some of the discussion around the Bacon
Electric /Gary's Automotive case. At the joint meeting, there was
considerable discussion about priorities and allocation of tax
increment funds. Of major importance is the City Council's
current direction to potentially reserve a significant amount of
general fund monies to allocate toward housing programs.
It is hoped that the housing conditions study plus the land use
analysis will identify potential projects and programs which the
City Council and HRA can prioritize for implementation. We hope
to complete these projects for presentation to the City Council
on December 5, 1994 and the HRA at its December meeting.
Should you have any questions, please let me know.
BD /dn
M -94 -531
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Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: September 2, 1994
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development.Director
SUBJECT: Miscellaneous Items for Southwest Quadrant and
- Lake Pointe
As the HRA nears potential construction on both the Southwest
Quadrant and the Lake Pointe sites, it is necessary to start
thinking about ordering some of the typical studies that are
needed prior to selling the properties.
For the Southwest Quadrant, a Phase I environmental audit
regarding the 10 acres should be completed. A Phase I audit was
completed for the Rice Plaza property, but it would be beneficial
to complete a similar study for the existing 10 acres. If the
apartments are acquired, the audit should address those
properties as well. Also, I have contacted the surveying firm
which completed the initial survey work for Lou Lundgren on the
Southwest Quadrant. I have requested an estimate as to the cost
to update the boundary and topographic.survey such that we can
get a current certificate of survey for the property. Hopefully,
an estimate will be provided to the HRA on Thursday evening.
Regarding Lake Pointe, the HRA may want to consider conducting a
Phase I audit for that property as well. As we speak to
potential users, it would be very useful to have any potential
contamination issues fully resolved. Further, the HRA has asked
staff to research some of the architectural issues that were
discussed during the project when Woodbridge was the proposed
developer. I will complete that research; however, we may want
to take a similar approach as we now are with the Southwest
Quadrant. An architect acting on the HRA's behalf to review
proposed development plans to be consistent with the design
criteria that the HRA wants to establish would be appropriate.
Although this is not an immediate priority, I wanted to remind
the HRA of this approach.
I would like to work with Sunde Land Surveying and Engineering to
put together a current certificate of survey of the Lake Pointe
property. Woodbridge did file a plat application, but the final
ill
SW Quad and Lake Pointe
September 2, 1994
Page 2
plat was not recorded. Again, as we are doing the Southwest
Quadrant, we should have a good existing certificate of survey
and topography to be able to provide to prospective users.
Finally, as we move closer to talking to potential users of the
Lake Pointe site, it is important to remember that the
landscaping that the HRA installed was for the campus appearance
of the property. The street trees do not meet the requirements
of the current landscaping ordinance should the property be
developed.
Also of importance, because of the size of the potential
development, we will be required by the Metropolitan Council as
part of our Transportation chapter of the Comprehensive Plan
update, to initiate and encourage "transportation demand
management" programs. These programs are employee ride - sharing,
transit services to the office building from major bus routes,
and other programs designed to encourage transit use rather than
"single occupancy vehicles ". These issues should be presented to
potential users.
Finally, as I have done for the Southwest Quadrant, it will also
be necessary to identify a list of approvals for the Lake Pointe
property. At minimum, a new plat and site plan approval will be
needed.
Unless otherwise directed, I would like to begin ordering the
Phase I audit for the Southwest Quadrant and the Lake Pointe
sites, and finalize the certificate of surveys for the Southwest
Quadrant and the Lake Pointe property.
BD /dn
M -94 -529
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