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HRA 06/22/1994 - 29573CITY OF FRIDLEY /`� HOIIBING & REDEVELOPMLNT AIITHORITY MLETIN(�, JIINE 22, 1994 .,..______...._________________,..._..___........,._,.....__.........._____________.,.. CALL TO ORDER: Chairperson Commers called the June 22, 1994, Housing & Redevelopment Authority minutes to order at 7:35 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, Duane Prairie Members Absent: John Meyer, Jim McFarland Others Present: William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Craig Ellestad, Accountant Jim Casserly, Consultant APPROVAL OF MAY 5, 1994 , HOUSING & REDEVELOPMENT AUTHORITY MINUTES : MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the May 5, 1994, Housing & Redevelopment Authority minutes as written. �,.� IIPON A VOICE VOTE, ALL VOTIATG AYE, CHAIRPERBON COMMERB DECLARLD THE MOTION CARRIED QNANIMOIISLY. 1. CONSIDER APPROVAL OF RESOLUTION NO. HRA 5- 1994 AUTHORIZING EXECUTION OF DEVELOPMENT CONTRACT WITH SCOTT LUND: Mr. Casserly stated that at the May 5, 1994, meeting, the HRA discussed the amount of assistance, the type of loan, previous HRA guidelines, the fact that the developer had not included all his costs, and that the HRA really did not have enough infornaation to make any decisions. Mr. Casserly stated that since the last meeting, Mr. Lund has identified all his project costs. He stated Ms. Dacy and he met with Mr. Lund and reviewed the project costs. Given the amount of the total project costs that are involved ($581,000) staff came within about 5 1/2� of doing a revenue note, so they have a revenue note of $32,000. That would be paid over a period of years. He had attached a copy of the payment schedule to his memo to the HRA dated June 2, 1994. The payment schedule shows a payment of $389 twice a year starting in 1996 and continuing through 2003. Mr. Casserly stated the development agreement is very basic. It is the kind of arrangement where if the improvements are not built, there is no revenues being generated and the HRA is not at risk in any way. �'1 n � r"� HOIIBING & REDEVELOPMENT AIITHORITY MTG., JIINE 22, 1994 PAGE 2 Mr. Casserly stated the project is a good one for this area. It will generate additional surplus increment which this area needs. The amount of assistance is very close to what the HRA has done in the past. MOTION by Mr. Prairie, seconded by Ms. Schnabel, to approve Resolution HRA 5- 1994, "A Resolution Authorizing Execution and Delivery of a Contract for Private Redevelopment By and Between the Housing and Redevelopment Authority in and for the City of Fridley and Rylund Properties". IIPON A VOICE VOTE, ALL VOTING AYE� CBAIRPEABON COMMERB DECLARED THE MOTION CARRIED. Mr. Lund expressed his appreciation to the members of the HRA for their help with his project. 2. CONSIDER APPROVAL OF SETTLEMENT AGREEMENT WITH DON FITCH: Mr. Burns stated that as directed by the HRA at its May 5, 1994, meeting, the City Attorney has negotiated a settlement agreement with Don Fitch. He stated this settlement is actually a little less than that authorized by the HRA. Ms. Dacy stated Mr. Fitch has purchased the former Marquette Bank building on Osborne Road so he has found a new location. He has not yet provided the HRA with a notice to vacate. MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the settlement agreement with Don Fitch and authorize staff to prepare a check in the amount of $42,500. IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPER80N COMMERB DECLARED THE MOTION CARRIED IINANIMOIIBLY. 3. CONSIDER AUTHORIZATION OF SEALCOAT AND STRIPING IMPROVEMENTS TO FRIDLEY PLAZA OFFICE PARKING LOT: Ms. Dacy stated that when the HRA approved the revised lease, the HRA discussed what the HRA's responsibilities were originally when the first lease was initiated approximately ten years ago. The conclusion of that discussion was that since the HRA owns the parking lot, it is responsible for the ongoing maintenance of the parking lot. To her knowledge, the parking lot has not been maintained in any form as far as sealcoating or striping. MOTION by Mr. Prairie, seconded by Ms. Schnabel, to authorize staff to work with the City of Fridley Public Works Department to complete sealcoating and restriping the parking lot on the east side of the Fridley Plaza Office building. HOIIBING � REDBVELOPMENT AIIT80RITY MTa., JIINE 22, 1994 PAGE 3 /`� IIPON A VOICE VOTE, ALL VOTIN(� AYE, CHAIRPERBON CONIl�3ER8 DECLARED THE MOTION CARRIED IINANIMOIISLY. 4. CLAIMS AND EXPENSES: Mr. Ellestad stated the checks to be approved are 25123-25153 and 25178-25191. Again, the gap in check numbers is due to printer problems and those checks have been voided. He would also add check #25192 which will be for $2,500 to Victor Rosenblum to reimburse Mr. Rosenblum for an application fee. MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the check register, checks 25123-25153 and 25178-25192. IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPER80N-COMMERS DECLARED THE MOTION CARRIED IINANIMOII3LY. 5. UPDATE ON SCATTERED SITE ACOUISITION: Ms. Dacy stated the HRA's goal for 1994 was to acquire four properties under the Scattered Site Acquisition Program and, to date, two properties have been acquired--8280 East River Road and 187 Longfellow Street. Recently, staff successfully negotiated the purchase of a third property. This property is located at 6409 ^ East River Road and is owned by Stuwart Anderson of San Diego, California. The purchase price would be $41,000 which is below the appraisal cost. Ms. Dacy stated staff would like the HRA to approve the purchase of 6409 East River Road for $41,000 and authorize the Executive Director to execute a purchase agreement with the seller. Mr. Commers stated this is another step in the acquisition process, and it appears staff has achieved a fairly favorable price. Ms. Dacy stated that as stated in Mr. Fernelius' memo dated June 2, 1994, staff plans to send letters to eight additional blighted properties which are good candidates for the Scattered Site Acquisition program. Ms. Schnabel stated that if a majority of these eight additional properties wish to sell, the HRA may need to seek additional funds to acquire the properties. Where is the HRA at as far as budgeted funds? Ms. Dacy stated the HRA allocated $200,000 in the 1994 budget for the acquisition of properties. They have acquired two properties for a total of $90,000, and the purchase price for the third property is $41,000 for a total cost of $131,000. There is a balance of approximately $69,000 for acquisition of a fourth ,� property. She stated that if they get more interest from these � 80II8INa & REDEVELOPMENT AIITHORITY MTa.. JIINB 22, 1994 PAaB 4 eight property owners, staff will come back to the HRA for further direction. Ms. Dacy stated that regarding 8280�East River Road, the Fire Department would like to salvage the garage and move it to its training site next to the Public Works Garage. Another option for the HRA to consider is that the Fire Department does do a burn exercise for training, and the Fire Department would like to burn the house at 8280 East River Road. Burning the house would save the HRA demolition costs. If the HRA has any concerns about this, they should let staff know. Mr. Commers asked if there is anything salvageable before the building is demolished or burned. Ms. Dacy stated that there is nothing of significant value for the HRA to recoup any amount of money. Ms . Schnabel stated she does not have any problem with the Fire Department burning the house, but it would be nice if there were some ways for the HRA to recoup some of their expenses. She stated it would also be nice if the Fire Department could clean up the charred wood. ,,-�, Ms. Schnabel asked if there is a basement under the house that would need to be filled in after the house is burned. Ms. Dacy stated she did not know if there is a basement. If there is, the concrete will have to be removed and the hole filled in. MOTION by Ms. Schnabel, seconded by Mr. Prairie, to authorize the purchase of 6409 East River Road at the negotiated purchase price of $41,000. IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPER80N COMMERB DECLARED T8E MOTION CARRIED IINANIMOIISLY. 6. INFORMATION ON ANOKA COUNTY SOLID WASTE MANAGEMENT FEES: Ms. Dacy stated that this is for the HRA's information. Mr. Commers asked if the City pays real estate taxes for the municipal liquor store. Ms. Dacy stated the City does pay real estate taxes, and those monies are included in the HRA budget. Mr. Commers asked why taxes are paid for the municipal liquor store. � Ms. Dacy stated the City must pay taxes on income-producing - properties. � HOIIBING & REDEVELOPMLNT AIIT80RITY MT(3.� JONE 22, 1994 PAGL 5 Mr. Commers stated the liquor store is a municipal enterprise; and if the property is owned by the HRA, it may be that the tax on the real estate is a tax that gets assessed against the tenant, more in the nature of a personal property tax rather than a real estate tax. Mr. Casserly stated that if it is a revenue-producing enterprise, and the HRA leases it out, there is no question taxes would have to be paid. But, in the instance of the liquor store, the HRA is leasing to the City for a city activity. This is something that has never been brought to the HRA's attention before. Mr. Commers stated that he would like staff to investigate: (1) whether or not real estate taxes are owed on the liquor store; and (2) whether or not the HRA is responsible for real estate taxes on any property that the HRA owns and leases to a third party to operate and whether those taxes are levied as personal property taxes against the tenant. The HRA needs to know who is ultimately responsible for these taxes. 7. UPDATE ON FIRST-TIME HOR7EBUYER PROGRAM: Ms. Dacy stated the City received an allocation of $787,000 for the ,-� 1994 Minnesota Cities' Participation Program. More than 60 cities requested $79 million for only $38 million available in mortgage revenue bond authority. Ms. Dacy stated Mr. Fernelius has also been successful in obtaining three additional banks for a total of five banks handling mortgage loans. 8. CONSIDER AUTHORIZATION OF MHFA APPLICATION FOR HOUSING CONDITION STUDY: Ms. Dacy stated that when the HRA and Council went through the housing analysis process, one of the strategies was to be as aggressive as possible with grants and funding programs. The MHFA has announced the availability of $100,000 in grant funding from the Capacity Building Grant Program. The maximum grant amount is $10,000. Ms. Dacy stated staff would like the IiRA to authorize staff to prepare an application for this grant. If funded, the purpose of the grant is to essentially fund a person to do a basic housing condition analysis. This analysis would allow them to update the housing condition information contained in the study on a census block and census tract basis, plus condition information on a parcel-by-parcel basis, and input that data into the GIS system. The outcome is an updated analysis of the housing condition on a �"'1 parcel-by-parcel basis that can be used to identify specific � properties for acquisition, demolition, redevelopment, or � 80IISINQ & RTDEVELOPMENT AIITHORITY MTG., JIINE 22, 1994 PAGE 6 rehabilitation. It will also be base infonaation that can be used for comparisons 10-15 years from now. The HRA members were in agreement with the preparation of an application to the NIIiFA for the $10,000 grant. 9. UPDATE ON LAKE POINTE MARKETING PROGRAM; Ms. Dacy stated staff has worked with the sign contractor, DeMars Signs, and the signs should be installed on the Lake Pointe site soon. The sign along I-694 will be fairly tall in order to be seen by eastbound traffic. Ms. Dacy stated Merrill Busch is continuing to work on the marketing proqram. Staff has done a cover letter to be signed by the HRA Chairperson and Mayor that will be included with the marketing brochures. Mr. Commers asked the allowed height and size of the signs. Ms. Dacy stated the Zoning Code allows a maximum height of 25 feet and a maximum size of 50 square feet. The signs will be well within those.regulations. � ADJOURNMENT• MOTION by Ms. Schnabel, seconded by Mr. Prairie, to adjourn the meeting. Upon a voice vote, all voting aye, Chairperson Commers declared the motion carried and the June 22, 1994, Housing and Redevelopment Authority meeting adjourned at 8:20 p.m. R s ctfully sub 'tted, � Lyn Saba Reco ding Secretary �