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HRA 02/09/1995 - 6285HOUSING i REDEVSLOPMSNT AUTHORITY NESTING THURSDAY, FEBRUARY 9, 1995 7:30 P.M. PUBLIC COPY CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, FEBRUARY 9, 1995 7:30 P.M. Location: Council Chambers Fridley Municipal Center CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: January 12, 1995 CONSENT AGENDA: RESOLUTION TO APPROVE A LOAN FOR DAVID. . . . . . . . 1 - 1J STEWART, MOORE LAKE APARTMENTS RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES. . . . . 2 - 2A REVENUE AND EXPENSES . . . . . . . . . . . . . . . . . 3 - 3B MONTHLY HOUSING REPORT . . . . . . . . . . . . . . . . 4 - 4A ACTION ITEMS: PUBLIC HEARING ON SALE OF SCATTERED -SITE. . . . . . . 5 - 5J ACQUISITION LOTS: 187 Longfellow Street 6409 East River Road 8280 East River Road 677 Hugo Street 539 Glencoe Street 547 Glencoe Street RESOLUTION AUTHORIZING EXPANSION OF . . . . . . . . . 6 - 60 REDEVELOPMENT PROJECT AREA NO. 1, AND CREATION OF TAX INCREMENT DISTRICT NO. 13 RESOLUTION CONDEMNING APARTMENT PROPERTIES. . . . . . 7 - 7C LOCATED AT 155 TO 175 SATELLITE LANE, 195 SATELLITE LANE, 211 SATELLITE LANE, AND 221 SATELLITE LANE APPROVE 1995 HRA BUDGET . . . . . . . . . . . . . . . 8 See Blue Notebook INFORMATION -ITEMS: UPDATE ON NEIGHBORHOOD MEETING FOR SOUTHWEST. . . . . 9 QUADRANT UPDATE ON LAKE POINTE MEETINGS. . . . . . . . . . . .10 OTHER BUSINESS• ADJOURNMENT CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, JANUARY 12, 1995 CALL TO ORDER: Vice - Chairperson Schnabel called the January 12, 1995, Housing and Redevelopment Authority meeting to order at 7:35 p.m. ROLL CALL: Members Present: Virginia Schnabel, Jim McFarland, John Meyer Members Absent: Larry Commers, Duane Prairie Others Present: William Burns, Executive Director Barbara Dacy, Community Development Director Jim Casserly, Financial Consultant Grant Fernelius, Housing Coordinator Rick Pribyl, Finance Director Jim Utter, 131 Sylvan Lane, Fridley, MN APPROVAL OF NOVEMBER 10, 1994, HOUSING AND REDEVELOPMENT AUTHORITY MINUTES• MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the November 10, 1994, Housing and Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: 1. CONSIDER ITEMS REGARDING SOUTHWEST QUADRANT: A. CONSIDER CONDEMNATION RESOLUTION ON SUH PROPERTY Ms. Dacy stated the City continues to negotiate with the Suh's.. Mr. Burns has been meeting with their representative. In order to accomplish the redevelopment schedule, it is appropriate the have the Housing and Redevelopment Authority (HRA) approve the resolution included in the agenda packet. Staff are still hopeful to complete a successful negotiation within the next week to ten days. Staff would like to have the resolution in place if it would become necessary to have the attorney file the appropriate documents. The law firm of Barna, Guzy and Steffen prepared the resolution, and staff recommends the HRA approve the resolution with the knowledge that staff are still trying to negotiate a successful acquisition. Mr. Meyer asked how far apart the two sides were in these negotiations. 5 HOUSING & REDEVELOPMENT AUTHORITY JANUARY 12, 1995 PAGE 2 Mr. Burns stated the parties are quite far apart on the settlement. It looks as if this may end up in condemnation; however, the representative for the property owners thinks a settlement can be reached. Mr. Meyer asked, if condemnation proceedings are initiated, is the rationale clear and do we have the authority to proceed. Ms. Dacy stated the HRA adopted a redevelopment plan 15 years ago that included this site, and it is clear that the HRA intended to acquire the property as part of the development. Mr. Utter stated he lives in the area and is concerned about what is going on there. He had read in the paper about the redevelopment and was not certain that the apartment buildings would be included in the redevelopment. That is why he was attending the meeting. Ms. Dacy stated the City Council was having a public hearing on February 13 to determine whether the apartment buildings should be included in the redevelopment. That is the meeting to attend to express opinions. She suggested Mr. Utter call staff to discuss the concept plan for the site. Mr. Burns stated he thought, at this time, it was fair to say that there appears to be a consensus of the City Council and HRA to move to acquire the four apartment buildings. That will be formalized by taking a number of steps including expanding the TIF district and condemnation proceedings. The City is moving in that direction. MOTION by Mr. McFarland, seconded by Mr. Meyer, to approve the Resolution of the Board of the Housing and Redevelopment Authority of Fridley, Minnesota, Authorizing the Acquisition of Certain Property by an Eminent Domain Proceeding. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. B. CONSIDER RESOLUTION TO AUTHORIZE EXECUTION OF THE CONTRACT FOR EXCLUSIVE NEGOTIATIONS Ms. Dacy stated she did not put the actual contract in the agenda because they then were in the process of negotiating with Rottlund Companies, and she wanted to come to the HRA with a final conclusion. Her memo outlined the general terms of the contract. Staff would like the HRA to pass the resolution, included in the agenda packet, authorizing the Chairperson and Executive Director to execute a contract. HOUSING & REDEVELOPMENT AUTHORITY JANUARY 12, 1995 PAGE 3 Mr. Casserly stated the contract lays out more of the timetable for the Authority and Redeveloper to commit to putting the project together. The contract essentially lays out a timetable and commits the City to work with no one other than Rottlund Homes. Mr. Casserly reviewed the terms of the contract. The City of New Brighton had the same agreement with the same company. Mr. Meyer referred to page 5, I., and asked the cost of the utilities. Ms. Dacy stated they did not have the cost estimate because that will depend on the site layout and how the utilities are brought in. Depending on the alignment of Third Street, the estimated cost is $115,000 to $130,000. The City has not specifically talked to Rottlund about it but she thought they would pay the costs up front. Ms. Dacy stated staff recommends approval of the resolution subject to review by the Chairperson and Executive Director. MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the Resolution Authorizing Execution and Delivery of a Contract for Exclusive Negotiations By and Between the Housing and Redevelopment Authority In and For the City of Fridley, Minnesota, and the Rottlund Companies, Inc.; subject to review by the Chairperson and Executive Director. UPON A VOICE VOTES ALL VOTING AYE# VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. C. CONSIDER CONTRACT FOR RELOCATION CONSULTANT Ms. Dacy provided quotes received from three consultants. Staff recommends the HRA hire Professional Redevelopment Resources, Inc. Staff is making this recommendation based on the fact that they submitted the lowest quote per tenant or household for the apartment relocation, the lowest quote for the business relocation for the commercial entities on the Suh property, and the hourly rate was between the other quotes. Based on our working relationship with Mr. Schnitker and his proposal, staff recommends the HRA provide authorization to execute a contract not to exceed $63,340. Mr. Meyer asked if staff had checked references. Ms. Dacy stated the City had hired Mr. Schnitker to do another. relocation for the Riverview Heights project and had checked his references at that point. That is how staff became aware of his services. For the others, staff spoke with other communities. All firms seemed to be well recommended. It comes down to an HOUSING & REDEVELOPMENT AUTHORITY JANUARY 12, 1995 PAGE 4 issue of cost. The list of duties for this project is included in the agenda packet. MOTION by Mr. Meyer, seconded by Mr. McFarland, to award the contract for relocation consultant for the Southwest Quadrant redevelopment to Professional Redevelopment Resources, Inc., and the contract is not to exceed $63,340. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. D. CONSIDER CONTRACT WITH MACROMEDIA FOR COMPUTER IMAGING Ms. Dacy stated the computer imaging had been discussed at the joint meeting with the City Council. After that meeting, staff met with Mr. Blundetto from Macromedia Technologies Inc., described the project and asked them to submit a proposal which was also reviewed with Rottlund Companies. Staff recommends the HRA purchase Option 1 for three 11" x 14" prints of selected views into the development and the two- minute video animation for a total cost of $19,100. The HRA and Rottlund would split the cost 50/50. The video shows what the buildings would actually looking using computer animation. Ms. Schnabel asked what would be shown on the three photo realistic stills. Ms. Dacy stated, essentially, the site will be vacant. Macromedia will take the building plans, computerize the plans, make a computer image of what the buildings will look like and provide images of what the site will look like. Mr. Burns asked what would happen if they wanted the prints to be poster size. Ms. Dacy thought the enlargement costs would be about $250 - $300. Ms.-Schnabel thought the drawings and schematics provided by Rottlund would serve the purpose of providing the audience with a visual image of what will go there and then have the four - minute animation in its place. Ms. Dacy stated the company apparently has to complete Option 1 first prior to doing the animation. Mr. Meyer 'stated this would, basically, be to aid others in understanding the redevelopment at the public hearing. Ms. Dacy stated yes. There will be at least one neighborhood meeting and two City Council meetings so they will be used. HOUSING & REDEVELOPMENT AUTHORITY JANUARY 12, 1995 PAGE 5 Mr. Meyer thought it valuable to give the best possible presentation at the public hearing to stop concerns. Ms. Dacy stated she wrote the memo to have the HRA authorize a contract for the full cost because staff did not know if Rottlund would cover half. Rottlund has agreed to do this; however, we do not have a signed agreement yet so she would still like to have this approved as such. MOTION by Mr. McFarland, seconded by Mr. Meyer, to authorize staff to execute a contract with Macromedia Technologies, Inc. at a cost not to exceed $19,100. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. CONSIDER ACOUISITION OF FRANK'S USED CARS Mr. Burns stated the recent death of Ms. Gabralcik is leading to efforts on the part of the estate to sell the property. Since the HRA has talked about acquisition, he thought this was appropriate. He knows approximately what the property should cost to acquire. He made an initial offer, and the family has made a counter offer. The City is proceeding to do a Phase I environmental study on the site. He recommends the HRA approve conceptually to acquire the property. This would be the second of three commercial properties along University which could be acquired. MOTION by Mr. McFarland, seconded by Mr. Meyer, to approve the concept of proceeding with negotiations to acquire the Frank's Used Cars property. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON.SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. CONSIDER CONTRACT WITH MICHAEL O'NEAL TO CONDUCT FOCUS GROUPS Ms. Dacy stated, as a result of the redevelopment analysis, this is a recommendation to initiate Focus Groups as recommended in the plan. Staff's recommendation is to hire Michael O'Neal for $8,700, who was recommended by Councilmember Jorgenson. Staff saw a video tape of a focus group, interviewed Mr. O'Neal and talked about what they want to do. Staff met with him twice and talked about what we want to accomplish, and he came back with a proposal. He would conduct six groups; three in Hyde Park and two for housing program recipients and those that did not receive assistance. The information is intended to refine existing programs and create specific program needs for the Hyde Park HOUSING & REDEVELOPMENT AUTHORITY JANUARY 12, 1995 PAGE 6 area. She thought they would learn a lot so that they can build on programs in other communities. Ms. Dacy stated this is a follow through of direction from the City Council. We have identified a neighborhood to start with based on our analysis. This is the first step in that implementation. Staff recommends that the HRA authorize staff to execute a contract for an amount not to exceed $8,700 to conduct six focus groups. Mr. Burns stated Mr. Larson is working in that neighborhood with the inspection program so they will also get information from that. Ms. Schnabel asked if there had been analysis done before in the Hyde Park area. Ms. Dacy stated there had not been an analysis to the extent of housing condition and need. There has been outside studies done in terms of appearance. Other than what we have just completed doing, the focus group will be another part of that analysis. Staff is trying to put this all together to develop a cohesive program. This is the most amount of detail we have had. Mr. Meyer stated this is the only time we have been talking to the people. It is well worth the effort. Mr. O'Neal sounds like the right person to do the job. Mr. McFarland asked if the fees included those passed on to the participants. Ms. Dacy stated no. Mr. O'Neal recommends we offer an incentive to the participants. He suggested a budget from $25.50/ participant to purchase smoke detectors or a door lock, etc., to provide an incentive. Staff has incorporated these costs into the housing operating funds. MOTION by Mr. Meyer, seconded by Mr. McFarland, to authorize staff to execute a contract with Mr. Michael O'Neal for an amount not to exceed $8,700 to conduct six focus groups UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Burns suggested the HRA consider the concept of a consent agenda. In doing so, a block of items can be approved at one time. If there is a question or a controversy, it takes just one vote to take that item off the consent agenda. He considered agenda items numbers 4, 5, 6, and 7 as routine items which could be approved as a block. HOUSING & REDEVELOPMENT AUTHORITY JANUARY 12, 1995 PAGE 7 MOTION by Mr. McFarland, seconded by Mr. Meyer, to recommend approval of the concept of a consent agenda. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. Ms. Schnabel requested staff to mark those items for a consent agenda so members are aware of it. 4. ESTABLISH PUBLIC HEARING ON FEBRUARY 9. 1995, REGARDING DISPOSITION OF SCATTERED -SITE PROPERTIES 5. CONSIDER RESOLUTION AUTHORIZING 3% COST OF LIVING INCREASE FOR THE HOUSING COORDINATOR 6. CONSIDER AUTHORIZATION TO BID ON 1375 SKYWOOD LANE N.E. 7. REVENUE AND EXPENSES MOTION by Mr. McFarland, seconded by Mr. Meyer, to approve the following: To establish a Public Hearing on February 9, 1995, regarding the disposition of scattered -site properties; to consider the Resolution authorizing 3% cost of living increase for the Housing Coordinator; to consider authorization to bid on 1375 Skywood Lane N.E.; and to approve check register #25370 to #25398 as submitted. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 8. REVIEW SCHEDULE OF REDEVELOPMENT OF SOUTHWEST QUADRANT Ms. Dacy. stated various processes are all going on at the same time. The key dates for the HRA were included with.the agenda packet, page B.C. The first two items on that page have been accomplished. At the next meeting, the HRA will be considering a resolution to expand the TIF district subject to.the City Council's approval and, if staff cannot successfully negotiate with the apartment owners, the HRA may consider a resolution for condemnation on the next agenda. Finally, the date for the development contract approval will probably be June or July to actually review the development contract. Ms. Schnabel asked if there has been contact with the apartment owners. Mr. Burns stated there has been contact with the apartment owners. HOUSING & REDEVELOPMENT AUTHORITY JANUARY 12, 1995 PAGE 8 9. REVIEW PROPOSAL FOR LOAN AGREEMENT_ BETWEEN THE CITY AND HRA Ms. Dacy stated, at the joint meeting with the City Council and HRA, the concept of a loan agreement between the City and the HRA was briefly discussed. Since then, staff have talked about initial terms. Staff is proposing that the City loan the HRA $1,600,000 for 15 years at 5% interest. The HRA would pay that back via the tax increment that is generated by the development. Also discussed were bonds and other approaches to financing a shared agreement between the City and the HRA. Staff felt this was the best and easiest way to accomplish this approach. A similar memo was sent to the City Council last weekend, and she has heard no objections. Pending HRA discussion, staff would have the City Council approve the loan at their next meeting. Mr. Casserly stated the loan represents a fairly good discipline. The HRA is borrowing money from the City and repaying it through the tax increment. If this was financed through a second or third party, there would be additional expenses. There are issues that need refinement because we are not sure how much development will be on that site or the density. We are in the process of refining the expenses and these will get more refined. The goal was to get the cash paid for the land, subtract that from the total, borrow as much as we could pay back with a loan, and the remainder would be taken out of the fund balance. That is good discipline. The HRA is not borrowing money that it cannot repay, and it keeps everything solvent: We are dealing with a cash flow problem, and the City is providing a low interest loan with almost no costs. Mr. Burns stated one of the main issues was whether or not to use external or internal sources. If we used external sources, we would use taxable bonds. With today's interest rate, this was not feasible. OTHER BUSINESS 12. PHASE II ENVIRONMENTAL AUDIT FOR THE SOUTHWEST QUADRANT Ms. Dacy stated Mr. Bruce Leisch is doing a Phase II audit. In borings done in the southwest corner of the site by the fast lube business, they have found some oil contamination. They feel it is in one particular area of that site near the public right -of- way and Mississippi Street. The next step in that process is to take two bids to prepare a remediation plan and then initiate testing to find out the extent of the problem. Mr. Leisch recommended three or four wells be drilled in the immediate area and the soil tested. Based on the result of those test wells, the remediation plan will be developed. Most of the costs for remediation should be reimbursed from the petro fund. HOUSING & REDEVELOPMENT AUTHORITY JANUARY 12, 1995 PAGE 9 13. ENVIRONMENTAL_ AUDIT AT LAKE POINTE Ms. Dacy stated minor exploratory borings are being done. Apparently in 1949, there was a bus garage in that area. Because that soil has been redirected, it is likely they will not find contamination. They are doing the borings in order to convey a clean title. Ms. Dacy stated the groundwater is being tested on the site of the gas station on East Moore Lake and Hathaway. Lake Pointe is downstream from that site. It is not possible for us to say there is no groundwater contamination below Lake Pointe. 14. SUMMARY OF EXPENSES Ms. Schnabel requested, with the Southwest Quadrant, to have a periodical summary of expenses incurred so they can see a running total. Ms. Dacy stated it might be a good idea to put this information in one place. This is currently separated out in the budget. Mr. Pribyl stated the items are coded for the development. Staff would be able to provide that information. 15. CONFLICT OF INTEREST STATEMENTS Ms. Schnabel thought Conflict of Interest statements had been signed in the past and asked if this should again be done. Mr. Pribyl stated he would check on this. ADJOURNMENT MOTION by Mr. Meyer, seconded by Mr. McFarland, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED AND THE JANUARY 12, 1995, HOUSING AND REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 8:45 P.M. Respectfully submitted, �6 oa - - v r 14LJ Lavonn Cooper Y Recording Secretary S I G N- I N S H E E T HOUSING AND REDEVELOPMENT AUTHORITY MEETING, January 12, 1995 Name Address /Business r � q (A - 17 7_5 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: February 3, 1995 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Resolution Authorizing Loan for Moore Lake Apartments On August 11, 1994, the HRA authorized staff to prepare a loan agreement with the owners of the Moore Lake Apartment project for a $10,000 loan. The City has agreed to sell a 351 x 163' strip of property adjacent to the Moore Lake Apartment property for expansion of the parking lot. The City has agreed to sell the property to the apartments for $5,000. The HRA agreed to loan Moore Lake Apartments $10,000 in order to complete this project. Dave Stewart, representing the apartment owners,-estimates that the total project costs for resurfacing the parking lot, including the expansion on the former City lot, as approximately $31,500. The terms of the loan was to be a ten year loan with the first two years of principal and interest deferred. The interest rate is 5 %. Jim Casserly has recommended that the HRA simply approve a resolution authorizing the HRA to make the loan payable to the apartment owners when they issue to the Authority a note, mortgage, and guarantee in a satisfactory form. In the August 11, 1994 HRA action, the HRA specifically requested a guarantee from the apartment owner. These documents will be provided. Staff recommends that the HRA pass the enclosed resolution as presented. BD /dw M -95 -83 612 334 3382 612—:334-3382 CASS:ERLY MOO -ZRHN TO: Fridley HRA 483 P02 FEB 82195 16:21 MEMORANDUM! FROM: James R. Casserly Mary E. Molzahn .DATE: February 2, 1995 RE: Moore Lake Apartment Project Moore Lake Apartments needs some additional land for parking. To assist with the parking problems, the City is selling approximately 5,700 square feet of land which it currently owns and which is adjacent to the Moore Lake Apartments. The City land sale would be in the amount of $5,000. In addition, to facilitate the construction of the parking treatments, the HRA is being asked to loan the property owner, 5701 General Partnership, the sum of $10,000. 5701 General Partnership would execute a note, a guarantee and a mortgage in the property to secure the note. The attached schedule for the note has no payments being made until February of 1997. Interest would accrue and would be added to the principal. The note would then be amortized over then remaining eight years at $782 to be paid semi - annually with the last payment in February of 2005. The interest on the note is at a rate of 5% per annum. The note terms are similar to other arrangements the HRA has made in the past. Also attached is a Resolution authorizing the loan and the delivery of funds. If there are any questions, please give us a Call. JRC /MEM /kh Encl: 2 1A BRA RESOLUTION NO. - 1995 RESOLUTION AUTHORIZING A LOAN AND THE DELIVERY OF FUNDS BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY AND 5701 GENERAL PARTNERSHIP BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority ") as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority loan the sum of $10,000.00 to 5701 General Partnership, a Minnesota general partnership (the "Redeveloper "). Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted a development plan known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Plan ") pursuant to Minnesota Statutes, Section 469.001 et Me q. 2.02. The Authority hereby finds that the Loan promotes the objectives as outlined in its Redevelopment Plan. Section 3. Authorization for Loan and Delivery of Funds. 3.01. The Chairman and the Executive Director (the "Officers ") of the Authority are hereby authorized to make the Loan and deliver the sum of $10,000.00 when the following condition is met: Upon execution and delivery by the Redeveloper to the Authority of a note, mortgage, and guarantee in a form satisfactory to the Officers. PASSED AND ADOPTED BY THE BOARD OF THE HOUSING & REDEVELOPMENT AUTHORITY OF FRIDLEY, MINNESOTA, THIS DAY OF , 1995. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR IN 612 334 3382 612-3:34-=82 82 CASSEFL -Y MOO -ZAHN 483 PO4 FEB 02195 16:22 CITY OF FRIDLEY, MINNESOTA ROORE LAKE APARTMENTS ._ -__ -_ ------------------------ BEGINNING -- DEk'ERRED PRINCIPAL INTEREST PAYMENT PAYMENT BALANCE DATE BALANCE INTEREST PAYMENT r -j ---------------------- 0 0 0 0 10,000 3 1995 10 000 . 0 0 0 10,208 8 % 1995 10.000 208 0 0 0 10,464 2 / 1996 10,208 255 0 0 0 10,725 8 / 1996 10,464 262 514 268 782 10,211 2 / 1997 10,725 527 255 782 91684 8 / 1997 10,211 540 242 782 9,144 2 / 1998 91684 554 229 782 8,591 8 / 1998 91144 567 215 782 8,023 2 / 1999 8,591 582 201 782 7,442 8 / 1999 8r023 596 186 782 6,846 2 / 2000 7,442 611 171 782 61234 8 / 2000 61846 626 156 782 5,608 2 j 2001 6,234 642 140 782 4,966 8 / 2001 5,608 658 124 782 4,308 2 / 2002 4,966 674 108 782 3,634 -8 / 2002 41308 691 91 782 21,942 2 j 2003 3,634 709 74 782 2,234 8 / 2003 2,942 726 56 782 1,508 2 / 2004 2,234 782 763 8 / 2004 1,508 763 19 '782 (0) 2 j 2005 763 _ __ _ __ r - rr -__ _ ------- �--------- - - - - -� - -725 - 10,725 2 5'12 13,297 LOAN CLOSING DATE FIRST PAYMENT DATE FINAL PAYMENT DATE PRINCIPAL INTEREST RATE TERM 3/01/1995 2/01/1997 2/01/2005 10,000 5.00% 9 YEARS /11 MONTHS MOOREI PREPARED BY CASSERLY MO1fa 8 ASSOCIATES, INC. 02-- Feb -95 Z, t 4 K HOUSING & REDEVELOPMENT AUTHORITY MTG. , AUGUST 11, 1994 5 2. AUTHORIZE ACQUISITION OF 550 HUGO STREET N.E. 'Mr: Feriieliiis .stated-- `staff`liss negotiated witfi'th owrier 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 foi - storage. It has been vacant approximately two years 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 arid- 19408�s.. e MOTION by Mr. «Meyer, seconded by Mr. McFarland, to authorize staff to purchase 550 Hugo Street N.E. for $34,8W and to` authorize the Executive.Directbr to execute .a purchaseagreement� "- 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 tb 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, iipdated 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 ac 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 oot,:strip to* expand their parking -area. Ms. Dacy ;stated the :proposal is .that the Cit feet-from-the..lot at 5270 Polk Street to allow thedcreati n3of 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: 1• The City agrees to sell a stri of P 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 parki area,and the.vacant.,.lot ng Ms. Dacy- stated,.because of the change -in elevation bet een the apartment . -property and the vacant lot-.; a 5 -foot retaining wall -would be constructed. Ae code-requires a fence above the retaining wall-so-there would be screening. Mr. Commers asked if the dumpster is also required to be 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 5% 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. 1E N i 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: Dacy stated the current owners acquired the property at least three years ago, to her regollection. 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 a subsidy? Mr. Burns_stated:,the profit situation .in..the apartment.:rental businessismargnalf, ;:and itis= vey+difficult1'to: eta dtional : y money because most.are.fairly_.highly l aeveraged. - He has no seen Y 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. .•r.: 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. IF 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 deteriorate 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.. ,._, s•, other!a.proj ects Mr. Commers. stated these are looked -at individually. Homeowners who apply for rehab loans need to-show.their- Income..' In the case of McGlynn Bakeries-, he looked:at this as far as keeping jobs. in the community. This.is the first time for a request from a multiple housing.program. This is not bringing.jobs in,- but.HRA is trying to rehab the multiple housing stock to.makew sure it is liveable and maintained. To him, this is a mixture between single family and commercial. Perhaps they should not do this at all. 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 1G 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 abad deal and now the HRA-is paying for it. Mr. Meyer .asked if they then tell them they are investors and to find their own parking or help them with their Marking'. 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 zones- 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, over time 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? 1H 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* position. The IiRA should take a lien particularly if it is "•the 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. b Mr.. Meyer .., zeconded b y Mr. McFarland , to a p prov .. e: <the check register, checks. 25207 -25240 , plus the additional = experise s. UPON A VOICE - VOTE I ALL VOTING AYE,_ CHAIRPERSON COMMERS DECLARED" THE NOTION.CARRIED UNANIMOUSLY. 5. HOUSING PROGRAM UPDATE FOR JULY Mr. Fernelius. reviewed the housing housing ehab g Program update. �On.the g 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. En 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 Q/ 11 IV i. I I �Mu a ZO "SL Z0'08 i u O w; Z�.y pr } � h0 tij F- CL T ~ G O L1- U ` Qd E oU9 t1'). o! M LOl �I M co (01 N� r_� 1 t 9 133111S N-10d s, f r f' t +. L lA (0 NI z *41 > ° C _ ;CM LO W F 1 ! I I � I G VOU ONIMlliH Proposed Development Plan 1J . w l0 r N c O W 0 CR C c c a C. a J TO: WILLIAM W. BURNS, EXECUTIVE DIRECTOR OF THE BRA o FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR SUBJECT: THE HOUSING AND REDEVELOPMENT AUTHORITY'S RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES DATE: January 23, 1995 Attached is a resolution that will appoint Fridley State Bank and its successors as the 1HWs official depository for 1995. We are incurring little cost for the service we are provided by Fridley State Bank. At this time it does not seem to be beneficial to solicit for banking services with few banking options within the City. The City has Fridley State Bank as its Depository, and as a result the HRA banking services benefit because we do not have to duplicate the way we bank for the HRA. The services we receive have been excellent, Fridley State Bank has been responsive to our requests for information throughout the years. In using Fridley State Bank we are able to invest idle cash on a daily basis with minimum cost to the HRA. We are able to determine daily needs and invest the balance in a daily repurchase agreement with Shearson Lehman, Inc. If we were to change the provider for the banking services we would need to change the method in which we invest idle funds and the ease in which we make deposits. Staffs recommendation is to approve Fridley State Bank and its Successors as the 1HWs Depository for 1995. RDP /me Attachment W. EMA - 1995 MQ :;• I ` j I 10 u::• IT IS HEREBY RESOLVED that the Fridley State Bank and its successors are hereby designated as a depository for the funds of this corporation. IT IS FUIMIER RESOLVED that checks, drafts or other withdrawal orders issued against the funds of this corporation on deposit with said bank shall be signed by two of the folly: Richard D. Pribyl, Finance Director - treasurer William W. Burns, Executive Director /City Manager Howard D. Koolick, Assistant Finance Director and that said bank is hereby fully authorized to pay and charge to the account of this corporation any checks, drafts, or other withdrawal orders. BE IT F MIER RESOLVED that all transactions, if any, relating to deposits, withdrawals, re- discounts and borrowings by or on behalf of this corporation with said bank prior to the adoption of this resolution be, and the same hereby are, in all things ratified, approved and confirmed. BE IT FUG RESOLVED that any bank or savings and loan may be used as depositories for investment purposes so long as the investments ccuply with authorized invests as set forth in Minnesota statutes. BE IT FURTHER RESOLVED that the signatures of two of the following named City employees are required for withdrawal of BRA investment funds from savings and loan associations: Richard D. Pribyl, Finance- Director-Treasurer William W. Burns, Executive Director /City Mgr. Howard D. Koolick, Assistant Finance Director BE IT FUG RESOLVED that any brokerage firm may be used as a depository for investment purposes so long as the investments cxmply with the authorized investments as set forth in Minnesota statutes. PASSED AND ADOPIED BY THE • I 11 PMEVEMPMU AUTHCRITY OF Y I CIrY OF FRIDIEY THIS DAY OF • . WITTTAM W. BURNS, EXECUrM DIRECIM 2A • I' � M ••, I ill'+. •i I• 1'� I• X� T. RFSpIU]+ID1iT TO: FRIDLEY H.R.A FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES JAN 1995 ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES ADMINISTRATIVE OVERHEAD COMPUTER OVERHEAD (For Micro & Mini compubm) TOTAL ADMINISTRATIVE BILLING: OPERATING EXPENSES: POSTAGE BY PHONE — POSTAGE POSTAGE BY PHONE — POSTAGE US WEST —TELEPHONE SERVICE BENEFITS EXPENSES: CITY OF FRIDLEY — HEALTH INS CITY OF FRIDLEY — DENTAL INS CITY OF FRIDLEY — LIFE INS Account #'s for HRA's Use Account #'s for City's Use 14,967.25 101 - 0000 - 341 -1200 267.83 101 - 0000 -336 -3000 194.42 101 - 0000- 336 -3000 460- 0000 -430 -4107 15.429.50 262 - 0000 - 430 -4332 460 - 0000 - 430 -4332 460 - 0000 - 430 -4332 TOTAL OPERATING EXPENSES: 262 -0000 -219 -1001 262 -0000- 219 -1100 262 -0000 -219 -1200 TOTAL BENEFITS EXPENSES: TOTAL EXPENDITURES — JAN 1995 File :1123DATMHRA\TIFXBlWNQ wkl Debft 3 24.87 236 - 0000 -336 -3000 17.27 236 - 0000 - 336 -3000 13.37 236- 0000 -336 -3000 55.51 0.00 236 -0000- 219 -1001 0.00 236 -0000- 219 -1100 4.25 236 -0000- 219 -1200 4.25 .............................. �0�, P IoW ; W . , CL z C2 ne . z 0 , �- o f- 9L z + + W+ + z U , + U Q , , + U , + W + + 7 + O + + C , + a + , , , , LUW + �• , f- N a ze + + Z + C7 + U , LU W , Wg , OL + ad Q , W F- C7 + CL 9L O + M pLu U N + m u W W + , K J + , J S W , + N + , Q , , U , F- LU , + Z W + i U + U Z •+ + a , , , 2 , W + � E + 0 , O , N J + M W N W + W + Ln in r- !O s O i O + , 2 v1 OM..Zr W2 \ U + N M , W CAA S + w O W L + OL W + + I . -i w 0 2 , a a U. ; 0�►- ox 994 v~i= mUw 966' NYOY'.S U U w W W 2 J Z J W , Z U- I- U- F.- U W W1-Q OO► - Q NW �QQO i1LLmLL Ym .w Q Q OOC Q Q H W 1- W �QQLL- 73030 CD OOtiOON O W OO .G 1`In O�0(�00+On ON 't In Cm GOO 000 a- r M Ln M z 0 0 0 0 0 0 0 0 0 0 0 Cl C3,40 0 0 0 0 0 0 TT ?TT 0 0 0 0 0 C3 to 0000000 NO.- ONN0000 N I-N �f N cm It It 10 M— M— M m- 0 0 0 0 0000000o0 0000000000 00C3CD 0000 O O O O M M O 0 0 0 N.-r C3 C3 C" Oa-O cm%t s NNNtiNtiN a PPOM.a 0M.Paa00, v000000CA,M fm �..NNNN r N M M M M d'S Ln SON 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O Q. 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W OC 2 E Z 3 r-I b 3 b Wow o m � w �LO tO k V b A k 0 -r1 a O 0 Av01010 -rq go -4 0 O U t2+ Mr -.i W p' cd •� w b .po to W tT W -W b O O O A r-i r� P4 03 C,4 90 Gi 0 co ON 0 0 0 0 -N O yr O v V 0 0 N b it • 0 a 4J rl o -4-)r1 - H -� 4J "9F (d -U N c � $I O N $4 -4W CddA W ° -I a ro ro r-I !~ cd -r♦ In A 0 cod o O O m d' O •r1 In U V O d1 ri H b .H ((d --d 'd 'd V O - b N O b c k l d a E-1 r� 9 o 9 $4 k 'd r-I M 4J b W Gi W 4 tP IA (d •• O 0 0 O 14 z P4 a z i ac nom. W OC 2 E Z 3 . �C--% Community Development Department u HOUSING AND R,EDEVELopmENT AUTHORITY City of Fridley DATE: February 2, 1995 TO: William Burns, Executive Director of HRA 4*6- FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Public Hearing on Sale of Lots The purpose of this hearing is to provide the public with an opportunity to review and comment on the HRA's plans to sell its vacant, buildable lots. This memo will identify the properties to be sold, describe the sale process and provide an outline for, conducting the public hearing. Vacant Lots The properties to be sold are located at: 1) 187 Longfellow St. 2) 6409 East River Rd. 3) 8280 East River Rd. 4) 677 Hugo St. 5) 539 Glencoe St.* 547 Glencoe St.* * Parcels to be combined and sold as one buildable lot. Each of the sites have been cleared of any structures (or will be by spring) and are ready for development. Only new single - family homes will be constructed. Sale Process The properties will be sold to the highest, most responsible bidder on a sealed -bid basis. Bids will be accepted during mid - February to early -March and will be reviewed by the HRA at the March 9, 1995 meeting. The successful bidder will have 45 days to enter into a Sale and Development Agreement with the HRA or forfeit their earnest money. Attached is a brief summary of the bid package (reviewed at November 1994 HRA meeting) and the development agreement. Public Hearing on Sale of Lots February 2, 1995 Page 2 The HRA could consider the development agreement /s at their April 13, 1995 meeting. After execution of the agreements, the HRA and bidder /s would close on the property and convey title. At closing, the HRA would provide a quit claim deed to the buyer in exchange for a mortgage on the property. The mortgage would be in the amount of the lot purchase price due within 90 to 120 days. During this time period the buyer would submit plans and drawings to the HRA for review and approval. After HRA approval, the buyer would proceed with construction (after obtaining all building permits and zoning approvals, if necessary). Public Hearing In order to expedite the public hearing, staff is recommending that the HRA follow the format shown below: 1. Motion to open public hearing. 2. Introduction of item by Chair. 3. Staff presentation by Grant Fernelius on: a) Purpose of public hearing. b) Background on scattered site program. c) Outline sale and development process. 4. Request by Chair for public comment ( *) in following order: 187 Longfellow St. 6409 East River Rd. 8280 East River Rd. 677 Hugo St. 539 Glencoe St. 547 Glencoe St. ( *) Members of the public should be asked to identify themselves and their address. 5. Motion to close public hearing. GF/ M -95 -81 5A e PROVISIONS OF BID PACKAGE Overview This document is divided into several sections which include the following: 1. Bidding Procedures a) Earnest money b) Proper forms C) Bid deadline d) Award procedures 2. Post Ward Procedures a) Execution of contract b) Approval of plans c) Conveyance of title and mortgage d) Construction and completion deadline 3. Desian Guidelines a) Requires single - family home (only) b) Min. two (2) bedroom home c) Requires two (2) car garage with hard surface driveway d) Requires minimum landscaping e) KRA approval of plans and drawings 4. Projected Time Line 5. Location Maps 6. Lot Information Sheets a) Address and photo b) Lot size c) Utility service d) School district 7. Offer to Buy Form 8. Sale and Development Aareement Copy attached. DRAFT 1 -5 -95 SALE & DEVELOPMENT AGREEMENT RELATING TO (Legal and Street address) BY AND BETWEEN THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY 0 `5C I SALE & DEVELOPMENT THIS AGREEMENT, made and entered into this day of 1991, by and between the Fridley Housing and Redevelopment Authority, (hereinafter called the "HRA"), and (hereinafter called the "Developer "); WITNESSETH THAT, in the joint and mutual exercise of their powers and in consideration of the mutual covenants contained herein, the parties recite and agree as follows: section 1. Recitals. 1.01. The property. The HRA now owns the property described in the attached Exhibit "A ", (the "Property ") , located in the City of Fridley, Anoka County, Minnesota. 1.02. Facilities and Project. The Developer, in accordance with HRA approval, plans to construct or cause to be.constructed on the Property a single family home. The Developer shall provide the HRA with a copy of its plans and specifications showing details on the style, exterior architectural features, materials, color - selections, etc. of the home to be constructed, which plans and specifications shall be submitted to the HRA for review and approval prior to the issuance of any building permits on the Property.' Section 2. Sale /Purchase of Property. 2.01. Sale. The HRA agrees to sell the Property to Developer and the Developer agrees to purchase the Property from the HRA for the purchase price . of $ Developer will purchase the Property 1 with a minimum down payment of $ .... "..TW6...`balarice``..o:r"'`-$ _ will be carried on a purchase money mortgage < at e ... :: >: �:...; ...;.:..:;:- - - -... r ..............:,:.., . o , which wort a - -and interest will be due and --payable ..t.; Section 3. Developer's Representations. The Developer hereby represents, warrants and covenants to the HRA that as of the date of this agreement the statements set forth in this section are true and correct. 3.01. No Disability. The Developer is a , authorized to do business in the State of Minnesota. 5D 3.02. Litigation. There are no pending or, to the knowledge of the Developer, threatened actions or proceedings before any court or administrative agency which will materially adversely affect the financial condition, business or operation of the Developer or the ability of the Developer to perform its obligations under this Agreement. 3.03. Com liance. The Developer will comply with and duly and promptly perform all of its obligations under this Agreement and all related documents and instruments. Developer will also comply with all State and local codes /ordinances. Section 4. Developer's Undertakings. 4.01. Site Grading. Developer will be responsible for establishing and adhering to a site grading plan which plan shall be submitted to the HRA o grading plan shall at a minimum and drainage pattern. n or before _ specify house • The type, finish grades 4.02 New Construction. Developer shall be solely responsible for the construction, marketing and sale of the single family home on the Property by The minimum selling price of said home shall be $ 4.03. Floor Plan. Developer will be responsible for submitting to the HRA, and obtaining pre- approval of the floor plans and front elevations of the home proposed to be constructed on the Property. Said pre- approval must be obtained before the HRA will issue any building permits to Developer. 4.04. Landscaping. Developer will provide a $ yard/ landscaping package included in the sale price of each home. Said package will specify, at a minimum, tree sizes /type /number, sodded yards, foundation plantings /beds, and. any necessary retaining walls. 4.05. Fees and Charges. The Developer will pay, when due, all permit fees, connection charges, user charges or other charges lawfully imposed by the City with respect to the Property. Section S. City's Undertakings. 5.01. Existing Improvements. The City will be responsible for removing any existing structures, foundations and debris from the Property and will assure that all water and sewer services are stubbed to the boulevard at no cost to Developer. 5E Section 6. Security. 6.01. Letter of Credit. The Developer will provide the HRA with a Letter of Credit in an amount equal to the anticipated cost of the improvements to be made-on the Property. The form of the Letter of Credit shall be as set forth in Exhibit? The Developer will be responsible for submitting the Letter of Credit to the HRA for approval as to form and amount, which approval must be obtained before any building permits will issue. Section 7. Default. The failure to meet any condition of this Agreement shall be an event of default. 7.01. Remedies. If an event of default occurs and is not cured within 30 days of receiving written notice of said default, the HRA may take one or more of the following actions: a. suspend performance under this Agreement; b. terminate the Agreement, thereby rendering void any promises or approvals contained in this Agreement; c. draw upon the Letter of Credit as referenced in paragraph 6 herein; d. foreclose upon the mortgage referenced herein as provided by Minnesota law. Section S. Notices. All notices hereunder shall be in writing and either delivered personally or mailed by certified mail, postage prepaid, addressed to the parties at the following addresses: MW Fridley Housing and Redevelopment Authority 6431 University Ave. N.E. Fridley, MN 55432 Developer IN WITNESS WHEREOF, the HRA has caused this Agreement to.be executed by its duly authorized officers; and the Developer has executed this Agreement the day and year first above written. 5F FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY By: William W. Burns Its: Executive Director By: Lawrence R. Commers Its: Chairperson By:_ Its: STATE OF MINNESOTA ) ss. COUNTY OF ANOKA ) On this day of , 1995, before me, a Notary Public within and for said County, appeared to me personally known, who, being by me duly sworn, did say that he is William W. Burns named in the foregoing instrument, the Executive Director of.the Fridley Housing and Redevelopment Authority, a body politic and corporate under the laws of the State of Minnesota, and that this instrument was signed as his free act and deed. Notary Public STATE OF MINNESOTA ) ss. COUNTY OF ANOKA ) On this day of , 1995, before me, a Notary Public within and for said County, appeared to me personally known, who, being by me duly sworn, did say that he is Lawrence R. Commers named in the foregoing instrument, the Chairperson of the Fridley Housing and Redevelopment Authority, a body politic and corporate under the laws of the State of Minnesota, and that this instrument was signed as his free act and deed. Notary Public 5G. STATE OF MINNESOTA ) ss. COUNTY OF ANOKA ) On this day of , 1995, before me, a Notary Public within and for said County, appeared to me personally known, who, being by me duly sworn, did say that he is named in the foregoing instrument, the of , a under the b laws of the State of Minnesota, on ehalf of the , and that this instrument was signed as his free act and deed. f: \munic \jdh \devk.hra Notary Public 5H I r . EXHIBIT C IRREVOCABLE LETTER OF CREDIT TO: Fridley Housing and No. Redevelopment Authority Date: , 1995 6431 University Ave. N.E. Fridley, MN 55432 Dear Sir or Madam: We hereby issue, for the account of ( Name of Developer ) and in your favor, our Irrevocable Letter of Credit in the amount of $ , available to you by your draft drawn on sight on the undersigned bank. The draft must: a) Bear the clause, "Drawn under Letter Of Credit No. , dated , 1995, of ( Name of Bank ) "; b) Be accompanied by a writing, signed.by the Executive Director of the Fridley Housing and Redevelopment Authority, (i) stating that ( Name of Developer ) has defaulted in its obligations under that certain Development Contract, which contract may be amended from time to time without our approval, between i Name of Developer ) and the Fridley Housing and Redevelopment Authority dated , 1995, (the "Contract "); AND (ii) certifying that the amount drawn is required by the Fridley Housing and Redevelopment Authority to fulfill the obligations of ( Name of Developer ) under the Contract. c) Be presented for payment at _( Address of Bank ), Minnesota on or before 4:00 p.m. on , 1995. This Letter of Credit sets forth in full our undertaking which shall not in any way be modified, amended, amplified, or limited by reference to any document, instrument, or agreement, whether or not referred to herein. This Letter of Credit is not assignable. This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication No. 290. We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored upon presentation. BY: Its: 5J a° 0 # (4 -/ (7�5 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: February 2, 1995 �j► TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Resolution - Authorizing the Expansion of Redevelopment Project Area #1 and Creation of Tax Increment #13 Consistent with the City Council and HRA direction at its joint meeting on December 5, 1994, the necessary documentation has been prepared to create a new tax increment district in order to acquire the four apartment properties immediately adjacent to the Southwest Quadrant site. Jim Casserly has prepared the proposed tax increment financing plan entitled "Satellite Lane Apartments ". Enclosed you will find the resolution authorizing creation of the district, the proposed tax increment financing plan, and the proposed budget for tax increment expenses. The City Council is to conduct the public hearing regarding creation-of the district at its February 13, 1995 meeting. The City Council is scheduled to approve creation of the district at the same meeting unless significant controversy exists which would cause the City Council to table action on the item. You will note in the proposed budget and tax increment financing plan, the numbers proposed are in excess of our current budgeting estimates. The plan has been prepared in that way to provide the HRA with maximum flexibility for the project. Staff recommends that the HRA adopt the attached resolution authorizing modification of the Redevelopment Project Area and creation of Tax Increment Financing District #13. BD /dw M -95 -79 SOUTHWEST QUADRANT PROPOSED TIF #13 SYLVAN - LANE VA C01MV618' I , Li11 Q -ECG /4 ?ERCIj--RY _J Q CC m S.H.) 9 s p p 'INS till , J -04-17 LIJ 1:7 lov- V 110 LM PC 3t • A. st VAN 5YL (OF) ob A SYLVAN - LANE VA ?ERCIj--RY DRIVE till HRA RESOLUTION NO. - 1995 RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 TO REFLECT INCREASED PROJECT COSTS AND INCREASED GEOGRAPHIC AREA WITHIN REDEVELOPMENT PROJECT NO. It MODIFYING THE TAB INCREMENT FINANCING PLANS FOR TAB INCREMENT FINANCING DISTRICTS NO. 1 THROUGH NO. 12 TO REFLECT INCREASED PROJECT COSTS AND INCREASED GEOGRAPHIC AREA WITHIN REDEVELOPMENT PROJECT NO. 1, AND CREATING TAB INCREMENT FINANCING DISTRICT NO. 13 AND ADOPTING A TAB INCREMENT FINANCING PLAN RELATING THERETO BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority "), as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority modify the Modified Redevelopment Plan for Redevelopment Project No. 1 to reflect increased project costs and increased geographic area, pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047, inclusive, as amended and supplemented from time to time. 1.02. It has been further proposed that the Authority modify the Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 12 to reflect increased project costs and increased geographic area within Redevelopment Project No. 1, pursuant to Minnesota Statutes, Section 469.174 through 469.179, inclusive, as amended and supplemented from time to time. 1.03. It has.been further proposed that the Authority approve the proposed Tax Increment Financing Plan for proposed Tax Increment Financing District No. 13 pursuant to and in accordance with Minnesota Statutes, Section 469.174 to 469.179, inclusive, as amended and supplemented from time to time. 1.04. The Authority has investigated the facts and has caused to be prepared with respect thereto, a Modified Redevelopment Plan for Redevelopment Project No. 1 to reflect increased project costs and increased geographic area; Modified Tax Increment Financing Plans for Tax. Increment Financing Districts No. 1 through No. 12 to reflect increased project costs and increased geographic area within Redevelopment Project No. 1; and a proposed Tax Increment Financing Plan for proposed Tax Increment Page 2 - HRA Resolution No. - 1995 Financing District No. 13, defining more precisely the property to be included, the public costs to be incurred, and other matters relating thereto. 1.05. The Authority has performed all actions required by law to be performed prior to the approval and adoption of the Modified Redevelopment Plan for Redevelopment Project No. 1, of the Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 12, and of the proposed Tax Increment Financing Plan for proposed Tax Increment Financing District No. 13. 1.06. The Authority hereby determines that it is necessary and in the best interests of the City and the Authority at this time to approve and adopt the Modified Redevelopment Plan for Redevelopment Project No. 1 to reflect increased project costs and increased geographic area; to approve and adopt the Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 12 to reflect increased project costs and increased geographic area within Redevelopment Project No. l; and to approve and adopt the proposed Tax Increment Financing Plan for proposed Tax Increment Financing District No. 13. Section 2. Findings. 2.01. The Authority hereby finds that the assistance to be provided through the adoption and the implementation of the Modified Redevelopment Plan, Modified Tax Increment Financing Plans, and proposed Tax Increment Financing Plan are necessary to assure the development and redevelopment of Redevelopment Project No. 1. 2.02. The Authority hereby finds.that the Modified Redevelopment Plan, Modified Tax Increment Financing Plans, and proposed Tax Increment Financing Plan conform to the general plan for the development and redevelopment of the City as a whole in that they are consistent with the City's comprehensive plan. 2.03. The Authority finds that the Modified Redevelopment Plan, Modified Tax Increment Financing Plans, and proposed Tax Increment Financing Plan afford maximum opportunity consistent with the sound needs of the City as a whole for the development and redevelopment of Redevelopment Project No. 1 by private enterprise and it is contemplated that the development and redevelopment thereof will be carried out pursuant to redevelopment contracts with private developers. Section 3. Modification of the Modified Redevelopment Plan for Redevelopment Project No. 1. 3.01. The modifications to the Modified Redevelopment Plan for 6C Page 3 - HRA Resolution No. - 1995 Redevelopment Project No. 1 reflecting increased project costs and increased geographic area are hereby approved and adopted by the Commissioners of the Authority and are forwarded to the Fridley City Council for public hearing, review, and approval. Section 4. 4.01. The modifications to the Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 through No. 12 reflecting increased project costs and increased geographic area within Redevelopment Project No. 1 are hereby approved and adopted by the Commissioners of the Authority and are forwarded to the Fridley City Council for public hearing, review, and approval. Section 5. Approval of the Tax Increment Financing Plan and Establishment of Proposed Tax Increment Financings District No. 13. 5.01. The establishment of proposed Tax Increment Financing District No. 13 within Redevelopment Project No. 1 and the proposed Tax Increment Financing Plan relating thereto are hereby approved and adopted by the Commissioners of the Authority and are forwarded to the Fridley City Council for public hearing, review, and approval. Section 6. Filing of Plans. 6.01. Upon approval and adoption of the Modified Redevelopment Plan, the Modified Tax Increment Financing Plans and the proposed Tax Increment Financing Plan (collectively the "Plans "), the Authority shall cause said Plans to be filed with the Commissioner of Revenue. PASSED AND ADOPTED BY THE BOARD OF THE HOUSING & REDEVELOPMENT AUTHORITY OF FRIDLEY, MINNESOTA, THIS DAY OF 1995. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR � ,1 CERTIFICATION I, William W. Burns, Executive Director of the Housing and Redevelopment Authority in and for the City of Fridley, County of Anoka, Minnesota, hereby certify that the foregoing is a true and correct copy of Resolution No. passed by the Authority on the day of. , 1995. WILLIAM W. BURNS - EXECUTIVE DIRECTOR 6E SECTION XIV TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 13 (SATELLITE LANE APARTMENTS) Subsection 14.1. Statement of Objectives. See Section I, Subsection 1.5. Statement of Objectives. Subsection 14.2. Modified Redevelopment Plan. See Section I, Subsections 1.2. through 1.15. Subsection 14.3. Parcels to be Included. The boundaries of Tax Increment Financing District No. 13 are described on the attached Exhibit XIV -A and illustrated on Exhibit XIV -B. Subsection 14.4. Parcels in Acquisition. The Authority may publicly acquire and reconvey any or all of the parcels in Tax Increment Financing District No. 13 identified on the attached Exhibit XIV -A. The following are conditions under which properties not designated to be acquired may.be acquired at'a future date: (1) The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of the Tax Increment'Financing Plan; and (2) Such acquisition will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 14.5. Development Activity for which Contracts have been Sinned. As of the date of adoption of the Tax Increment Financing Plan, the City intends to enter into a Development Agreement with The Rottlund Company, Inca for the construction of approximately 44 townhome units with an estimated total market value of $4,405,500. Subsection 14.6. Specific Development Expected to Occur. At this time it is anticipated that approximately 44 townhome units will be constructed in 1996 and 1997. Subsection 14.7. Prior Planned Improvements. The Authority shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of district enlargement with a listing of all properties within Tax Increment Financing District No. 13 for which building permits have been issued during the eighteen (18) months immediately preceding 14 - 1 6F approval of the Tax Increment Financing Plan by the Authority. The county Auditor shall increase the original tax capacity of Tax Increment Financing District No. 13 by the tax capacity of each improvement for which the building permit was issued. If said listing does not accompany the aforementioned request or notice, the absence of such listing shall indicate to the County Auditor that no building permits were issued in the eighteen (18) months prior to the Authority's approval of the Tax Increment Financing Plan. Subsection 14.8. Fiscal Disparities. The Authority hereby elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subdivision 3, clause (a) if and when commercial /industrial development occurs with Tax Increment Financing District No. 13. Subsection 14.9. Estimated Public Improvement Costs. The estimated costs-associated with Redevelopment Project No. 1 are listed in Section I, Subsections 1.9 and 1.10. Subsection 14.10. Estimated Amount of Bonded Indebtedness. It is anticipated that $4,098,000 of bonded indebtedness could be incurred with respect to this portion of Redevelopment Project No. 1. Pursuant to Minnesota Statutes, Section.469.178, Subdivision 1, General Obligation Tax Increment Bonds may be used as required to amortize the costs identified in Section I, Subsections 1.9 and 1.10. The City reserves the right to pay for all or part of the activities listed in Section I, Subsections 1.9. and 1.10. relating to Redevelopment Project No. 1 as tax increments are generated and become available. Subsection 14.11. Sources of Revenue. The costs outlined in Section I, Subsection 1.9. will be financed through the annual collection of tax increments. Subsection 14.12. Estimated original and Captured Tax Capacities. The tax capacity of all taxable property in Tax Increment. Financing District No. 13, as most recently certified by the Commissioner of Revenue of the State of Minnesota on January 2, 1994, is estimated to be $16,008. The estimated captured tax capacity of Tax Increment Financing District No. 13 upon completion of the proposed improvements on January 2, 1998 is estimated to be $56,430. Subsection 14.14. Tax Increment. Tax increment has been calculated at approximately $64,645 upon completion of the improvements assuming a static tax capacity rate and a valuation increase of zero percent (0%) compounded annually. Subsection 14.13. Tax Capacity Rate. The current total tax capacity rate is 114.558x. 14 - 2 6G Subsection 14.15. Type of Tax Increment Financing District. Tax Increment Financing District No. 13 is, pursuant to Minnesota Statutes, Section 469.174, a Redevelopment District. Subsection 14.16. Duration of Tax Increment Financing District. The duration of Tax Increment Financing District No. 13 is expected to be twenty -five (25) years from receipt of the first tax increment. The date of receipt of the first tax increment is estimated to be July, 1997. Thus, it is estimated that Tax Increment Financing District No. 13, including any modifications for subsequent phases or other changes, would terminate in the year 2022. Subsection 14.17. Estimated Impact on Other Taxing Jurisdictions. The estimated impact on other taxing jurisdictions assumes construction would have occurred without the creation of Tax Increment Financing District No. 13. If the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact that the financing would not have occurred without the assistance of the City, the attached Exhibit XIV -E reflects the estimated impact of Tax Increment Financing District No. 13 if the "but for" test was not met. Subsection 14.18. Modification of Tax Increment Financing District and/or Tax Increment Financing Plan. As of February 13, 1995, no modifications to Tax Increment Financing District No. 13 or the Tax Increment Financing Plan therefore has been made, said date being the date of initial approval and adoption thereof by the City Council. 14 - 3 6H EXHIBIT XIV -A PARCELS TO BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 13 SATELLITE LANE APARTMENTS AS ORIGINALLY ADOPTED FEBRUARY 13, 1995 P.I.N. 14- 30 -24 -32 -0052 14- 30 -24 -32 -0053 14- 30 -24 -32 -0057 14- 30 -24 -32 -0059 and Third Street adjacent to PIN 14- 30 -24 -32 -0053 XIV -A -1 61 EXHIBIT XIV -B BOUNDARY MAP OF TAX INCREMENT FINANCING DISTRICT NO. 13 Soto, . . ma 1 ca L OWELL ADD. PV �a m , Tv FP1DL EY P-4RK wor Jos �+'N HILLS PL.4 T 6 � r �� -1 • _ ..,,�; . F . , • .•�•• .�� N �, Sri rq Un-"* ic .. • a• ' a •• t '• w Z" >��I.• ••• 1•��1 'l• rTl • � � `- In Z' `S " •. /� •.� L � n � `� i•i t Y � •. ♦ ijii ie ( tU1V�i�F�IT'Y I4 yT r. 1 _ NJ , XIV -B -1 6J z a x z 0 m m ic m z a 1" 11 x z a m a lit a m m 0 m z 0 0 1 1'9'1 EXHIBIT XIV -C CASH FLOW ANALYSIS CITY OF FRIDLEY, MINNESOTA PROPOSED SATELLITE LANE PROJECT 44 UNITS 7.505 PV RATE PAGE 1 SAT1 PREPARED BY CASSERfSf( W & ASSOCIATES, INC. 11- Jan-95 XIV -C -1 ORIGINAL ESTIMATED CAPTURED ESTIMATED LESS: AVAILABLE PRESENT VALUE ANALYSIS TAX TAX TAX TAX ADMIN TAX SEMI ANNUAL CUMULATIVE DATE CAPACITY CAPACITY CAPACITY INCREMENT FEES INCREMENT BALANCE BALANCE 6/ 1995 16,008 16,008 0 0 0 0 0 0 12 / 1995 16,008 16,008 0 0 0 0 0 0 6/ 1996 16,008 16,008 0 0 0 0 0 0 12 / 1996 16,008 16,008 0 0 0 0 0 0 6/ 1997 16,008 44,223 0 0 0 0 0 0 12 / 1997 16,008 44,223 0 0 0 0 0 0 6 / 1998 16,008 72,438 28,215 16,161 1,616 14,545 11,662 11,662 12 / 1998 16,008 72,438 28,215 16,161 1,616 14,545 11,241 22,903 6 / 1999 16,008 72,438 56,430 32,323 3,232 29,090 21,669 44,573 12 / 1999 16,008 72,438 56,430 32,323 3,232 29,090 20,886 65,459 6 / 2000 16,008 72,438 56,430 32,323 3,232 29,090 20,131 85,590 12 / 2000 16,008 72,438 56,430 32,323 3,232 29,090 19,403 104,993 6 / 2001 16,008 72,438 56,430 32,323 3,232 29,090 18,702 123,695 12 / 2001 16,008 72,438 56,430 32,323 3,232 29,090 18,026 141,721 6 / 2002 16,008 72,438 56,430 32,323 3,232 29,090 17,375 159,096 12 / 2002 16,008 72,438 56,430 32,323 3,232 29,090 16,747 175,842 6 / 2003 16,008 72,438 56,430 32,323 3,232 29,090 16,141 191,984 12 / 2003 16,008 72,438 56,430 32,323 3,232 29,090 15,558 207,542 6 / 2004 16,008 72,438 56,430 32,323 3,232 29,090 14,996 222,537 12 / 2004 16,008 72,438 56,430 32,323 3,232 29,090 14,454 236,991 6 / 2005 16,008 72,438 56,430 32,323 3,232 29,090 13,931 250,922 12 / 2005 16,008 72,438 56,430 32,323 3,232 29,090 13,428 264.349 6 / 2006 16,008 72,438 56,430 32,323 3,232 29,090 12,942 277,292 12 / 2006 16,008 72.438 56,430 32.323 3,232 29,090 12.474 289,766 6 / 2007 16.008 72.438 56.430 32.323 3.232 29.090 12,024 301,790 12 / 2007 16,008 72,438 56,430 32,323 3,232 29,090 11.589 313,379 6 / 2008 16,008 72.438 56,430 32.323 3.232 29.090 11,170 324,549 12 / 2008 16,008 72,438 56,430 32,323 3,232 29,090 10.766 335,315 6 / 2009 16.008 72,438 56,430 32.323 3.232 29,090 10.377 345,692 12 / 2009 16.008 72.438 56,430 32.323 3.232 29,090 10,002 355.695 6 / 2010 16.008 72,438 56.430 32.323 3.232 29,090 9.641 365.335 12 / 2010 16.008 72,438 56.430 32.323 3,232 29,090 9.292 374.627 6 / 2011 16.008 72.438 56.430 32,323 3,232 29,090 8.956 383.584 12 / 2011 16,008 72.438 56.430 32.323 3,232 29,090 8,633 392.216 6 / 2012 16,008 72,438 56,430 32,323 3,232 29,090 8,321 400,537 12 / 2012 16,008 72.438 56,430 32.323 3.232 29,090 8.020 408.557 aaaaaaaaaaaaaaaaaaaaaa= aaaaaaaaaaaaaa- 937.354 ^ ^- aaaaaaaaaaaaaa- 93.735 _aaaaa�aaa 843.618 408.557 aaaaaaaaaaas---- 408.557 - --- -- PAGE 1 SAT1 PREPARED BY CASSERfSf( W & ASSOCIATES, INC. 11- Jan-95 XIV -C -1 CITY OF FRIDLEY, MINNESOTA ORIGINAL MARKET VALUE ORIGINAL TAX CAPACITY PAY 1994 TAX RATE ADMIN FEES INFLATION PV RATE 6/1995 HOMESTEAD TOWNHOMES ESTIMATED SALES PRICE ESTIMATED SALES PRICE /UNIT 33 UNITS 100,000 11 UNITS 145,000 ESTIMATED MARKET VALUE 90•00% ESTIMATED MARKET VALUE/UNIT 33 UNITS 90.000 11 UNITS 130,500 ESTIMATED TAX CAPACITY ESTIMATED TAX CAPACITY /UNIT 1.00% 2.00% 1,080 1.00% 2.00% 1.890 ESTIMATED TAXES ESTIMATED TAXES /UNIT 33 UNITS 1,237 11 UNITS 2.165 CONSTRUCTION 50.00% 1996 VALUATION 1997 28.215 TAXES PAYABLE 1998 CONSTRUCTION 50.00% 1997 VALUATION 1998 28,215 TAXES PAYABLE 1999 SAT1 PREPARED BY CASSERLIlAHN & ASSOCIATES. INC. XIVV -CC -2 1,600,800 16,008 1.145580 10.00% 0.00% 7.50% 4.895,000 4,405,500 56,430 64,645 PAGE 2 11- Jan -95 EXHIBIT XIV -D "BUT FOR" ANALYSIS The four parcels in the proposed Tax Increment Financing District are located in an area which has been targeted by the City for redevelopment. For the past fifteen years the City has attempted to redevelop the southwest quadrant of University Avenue and Mississippi Street. In pursuit of this overall redevelopment, the City has already acquired a number of adjoining parcels which are blighted. These remaining four parcels are an integral part of the total redevelopment of this area. The City intends to demolish the four substandard apartment buildings and replace them with an approximate 44 -unit market rate housing project. In addition to providing improved housing opportunities, this redevelopment will provide an additional $2,804,700 in market value to the City's tax base. Due to the high costs of land acquisition, demolition, relocation, site improvements and the installation of public improvements, this redevelopment project can not proceed without public assistance from the City. XIV -D -1 6M EXHIBIT XIV —E ESTIMATED IMPACT OF TAX INCREMENT FINANCING DISTRICT NO. 13 IMPACT ON TAX BASE IMPACT ON TAX RATE TAX ORIGINAL ESTIMATED CAPTURED DISTRICT RATE TAX TAX TAX TAX AS % ENTITY BASE CAPACITY CAPACITY CAPACITY OF TOTAL City of Fridley 27,329,921 16,008 72,438 56,430 0.206% County of Anoka 146,471,588 16,008 72,438 56,430 0.039% ISD #14 11,514,810 16,008 72,438 56,430 0.490% IMPACT ON TAX RATE * Assumes construction would have occurred without the creation of a Tax Increment Financing District. If constrtuction is a result of Tax Increment Financing, the impact is $0. 1 TAX % OF TAX TAX RATE ENTITY RATE TOTAL INCREMENT INCREASE City of Fridley 0.16026 13.99% 9,043 0.033% County of Anoka 0.60840 53.11% 34,332 0.023% ISD #14 0.32680 28.53% 18,441 0.161% Other 0.05012 4.38% 2,828 1.14558 100.00% 64,645 * Assumes construction would have occurred without the creation of a Tax Increment Financing District. If constrtuction is a result of Tax Increment Financing, the impact is $0. 1 k AS MODIFIED FEBRUARY 13, 1995 Land Acquisition $2,500,000 Relocation 300,000 Demolition 200,000 Public Improvements 25,000 Site Improvements 25,000 Issuance Costs 20,000 Contingency 250,000 Administrative Expenses 95,000 Total $3,415,000 Maximum Estimated Bonded Indebtedness * $4,098,000 * This amount includes capitalized interest in an amount sufficient to pay interest on the bonds from the date of issue until the date of collection of sufficient tax increment revenues to meet scheduled interest payments when due. 1 - 20 a° 0 X69- -7-17 q Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: February 2, 1995 TO: William Burns, Executive Director of HRA10 FROM: Barbara Dacy, Community Development Director SUBJECT: Resolution Authorizing Condemnation of Satellite Lane Apartments The Attorney's office has prepared the necessary resolution to begin condemnation proceedings on the apartment properties along Satellite Lane. Although negotiations continue with the property owners, passage of the condemnation resolution is necessary in order to accomplish the redevelopment schedule. The condemnation petition cannot be filed at Anoka County, however, until the City Council officially creates the tax increment financing district. The City Council will be conducting a public hearing on that item on February 13, 1995. It is anticipated that the City Council will also take action on the resolution to create the district at that meeting. Staff recommends the HRA approve the resolution as presented subject to creation of the tax increment financing district by the City Council. BD /dw M -95 -80 _11 BRA RESOLUTION NO. - 1995 RESOLUTION OF THE BOARD OF THE HOUSING & REDEVELOPMENT AUTHORITY OF FRIDLEY, MINNESOTAI AUTHORIZING THE ACQUISITION OF CERTAIN PROPERTY BY AN EMINENT DOMAIN WHEREAS, the Board of the Housing & Redevelopment Authority of Fridley, Minnesota has determined that there is a need to acquire property, described in Exhibit A, which is attached hereto and made a part of this Resolution, for the purpose of redeveloping a residential area within the City of Fridley, Minnesota; and WHEREAS, the Board believes that the acquisition of the property described in Exhibit A is reasonably necessary and convenient to the furtherance of these objectives and will promote the health, safety, and welfare of the residents of the City of Fridley, Minnesota, and is in accordance with the public purpose and provisions of applicable state and local laws; and WHEREAS, the Board has been unable to successfully negotiate the acquisition of the property described in Exhibit A, located in the City of Fridley, County of Anoka, State of Minnesota. NOW, THEREFORE, BE IT RESOLVED, that the Board of the Housing & Redevelopment Authority of Fridley, Minnesota hereby authorizes the acquisition of the subject property by an eminent domain proceeding pursuant to Minnesota Statutes, Chapter 117. BE IT FURTHER RESOLVED, that said Board determines that it is in the best interest of the Housing & Redevelopment Authority of Fridley, Minnesota to acquire the possession of said property as soon as permitted by Statute, therefore, the Board hereby authorizes the implementation of Minnesota Statute 117.042, providing early possession of said property. BE IT FURTHER RESOLVED, that the Housing & Redevelopment Authority of Fridley, Minnesota's attorney is requested and authorized to file the necessary petition therefore and to prosecute such action to a successful conclusion or until it is abandoned, dismissed, or terminated by the Board of the Housing & Redevelopment Authority of Fridley, Minnesota or by the District Court. 7A Page 2 - HRA Resolution No. - 1995 PASSED AND ADOPTED BY THE BOARD OF THE HOUSING & REDEVELOPMENT AUTHORITY OF FRIDLEY, MINNESOTA, THIS DAY OF 1995. ATTEST: LAWRENCE R. COMMERS - CHAIRMAN WILLIAM W. BURNS - EXECUTIVE DIRECTOR r-, 1995 HOUSING & REDEVELOPMENT AUTHORITY BUDGET TABLE OF CONTENTS Budget Summary Memo .......................Blue Cash Flow and Projection of Annual ...............White Cumulative Balances Operating Fund ... ...........................Pink Housing Fund ...... .........................Yellow Legal Services .... ..........................Green M. r �► Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: February 2, 1995 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Draft 1995 HRA Budget The.proposed 1995 HRA budget includes expenditures for expanded housing activities as discussed in the recent redevelopment priority and housing program report, as well as expenditures relating to the Southwest Quadrant and Lake Pointe. Big Picture The first attachment (Attachment #1) is the "Cash Flow and Projection of Annual Cumulative Balances„ which analyzes..revenues versus expenditures in our tax increment and redevelopment program., As has been done in recent years, conservative estimates are used for the revenue portion of the cash flow, and liberal estimates are made on the expenditure portion of the cash flow analysis. Despite the expenses anticipated with the Southwest Quadrant and an expanded housing program budget, positive cumulative balances are projected until 2014. Revenues The following summarizes key assumptions for each of the columns on the revenue side of the projection analysis: 1. The tax increment projection represents 1994 payable taxes. It does not include increment from any development on Lake Pointe, the Southwest Quadrant, Norwood Square, or any other new development (for instance, the 46 unit Hillwind Townhome development). A zero percent appreciation rate is also assumed. 2. Mortgage revenue includes mortgage payments from University Avenue Associates (Springbrook Apartments), the Shorewood Inn, Sheet Metal Connectors, Frank Ritterman, and Victor Draft 1995 HRA Budget February 2, 1995 Page 2 Rosenblum. At this time, there are no delinquencies on any of these mortgages. 3. The rental revenue column eliminates the rent received from the liquor store in 1995 and the Fridley Fast Lube as well. The remaining rental revenue is the $800 per month payments from the Fridley Plaza Office building for the parking lot. 4. The special assessment revenue is from the East Moore Lake Drive project. 5. We have calculated interest earnings on the balance through 2000. We have not projected the interest earnings beyond 2000 because it tends to inflate the cumulative balance at the far right -hand side of the analysis. This may be unrealistic because, in all likelihood, we will be receiving increment from development in project areas and, consequently, will be accumulating interest. Expenses The following summarizes key features of the expense columns: 1.. The column entitled "operating expenses" represents total expenses for personal services, supplies, other services and charges, and capital outlay, including the housing fund. 2. We have created a housing program column which represents the total of all of the rehabilitation programs and the single family programs. For example, the 1995 total of $1,245,000 includes $430,000 of housing rehabilitation loans, $315,000 of single family scattered -site acquisitions, and $500,000 of loans for apartment or rental units. While it is possible that the HRA could expend all of these monies in one year, it should be remembered that these will be processed as both loan and deferred loan payments so that the HRA will receive revenues over time in return. The revenue side of the cash flow analysis does not assume any income from the housing program, another conservative assumption. 3. The analysis assumes that the HRA will continue the policy of returning all of the school district refunds through 2010. �J i 7 7 I 1 i Draft 1995 HRA Budget February 2, 1995 Page 3 4. A new column has been added entitled "projects ". This represents the documentation for projects such as the net cost for the Southwest Quadrant, the intersection improvement for Lake Pointe which is projected in 2000 at 7 $1,900,000, and potential projects in the University Avenue corridor in 1996 -97. The 1995 expenditure not only includes the Southwest Quadrant project but also includes the following: $150,000 for Frank's Used Cars; $ 88,000 for Gunderson Home; $10,670 for Plaza area tree replacement; $10,000 for banners for Mississippi Street; $4,500 for two spare decorative lights; and $2,550 for Dairy Queen taxes (it will be tax exempt next year). These projects did not fit well in any of the other columns, so a new column was created for better documentation. 5. The total debt service column represents the debt service - payments on the three bond issues pertaining to ERA projects. It is anticipated that the Lake Pointe bond will be rolled over in 1995. By rolling over the Lake Pointe bond, payment of the bond is postponed to approximately 1998. Based on the amount of developer /user interest that we are now receiving on the property, it is hoped that increment will soon be generating from the development which - will help to retire the bonds. HRA Operating Fund and Housing Coordinator Fund As you recall, the HRA created two funds to trace our expenses; the HRA Operating Fund and the Housing Coordinator Fund. We have provided detail sheets for each of these funds and provided _ expense information on a line item basis. The Operating budget has significantly increased from the 1994 budget because of the acquisition, demolition, and relocation expenditures associated with the Southwest Quadrant. As has been discussed before, the property will be sold to the developer and it is anticipated that the HRA will receive at least $1,000,000 for the land sale. Further, tax increment from the project will be generated. The Housing Coordinator budget has increased primarily because of $115,000 increase in the scattered -site budget, as well as the proposal to hire a rehabilitation counselor to assist homeowners and apartment owners with rehabilitation loan and rehabilitation projects. Based on direction from the City Council, and as a result of the '^ analysis completed in the redevelopment priority plan (which was distributed to the HRA and City Council in December), the rehabilitation programs are now recommended to be targeted to the priority neighborhoods identified in the plan. The Hyde Park I Draft 1995 HRA Budget February 2, 1995 Page 4 neighborhood is the first priority. Rehabilitation loans and the home mortgage assistance program will still be offered to "7 residents community -wide, however, a majority of the funds are j recommended to be targeted to the Hyde Park area. Three focus groups are proposed to be conducted in the Hyde Park area. Further, two additional focus groups are proposed to be conducted with rehabilitation program recipients and those who did not receive assistance. Potential Bond Issue Although not specifically identified in the budget, we are now investigating whether or not selling a $1,000,000 bond to be supported by the tax increment to be generated by a new district created for the Hyde Park area as well as the taxes generated by an HRA tax levy (approximately $150,000). Selling a bond preserves the HRA's cash position to a certain degree. Further, creating the tax increment district enables the HRA to recoup some of its expenses. Recommendation Staff recommends that the HRA approve the budget as presented. BD /dw M -95 -43 R" �pp�NN��pp � N N,pa....N_. �.N•- .949- D M f0 -- W ggE6tZ �10 wU) tri � o QQn ZSIN ��vm°�� s€�}�iMi�ionmsrrir�riM W �i�� m��MNd 17arae T.- 19 pj d a x» N T T T T T T T T T T T T T �C4 aw �o ai ri l9 M ri ri ri ri vi vi ^ N N (O Am �^ m c�coaa�e�co co to oC-0 Zo�TTT Bid Q o o Q 00000000000000 �� m ASS ao 2255 _�i ° c IN w T ....::.::::..:. Coco 5 NAR 0000000000 m Y p $ T2 to J3 Pa LL �}(N� (l��(�(N� p�(�11tp�tf��11�p�•pp -�n� c O Z T.9 s l'T'� 3T W ^ ttOOi` W T = W ♦ to v M O W aD 1� N- M Of 0 �gp T m d t�'.•:.• •. l+1 l'; l0 l0 l0 l9 07 N N N N N T �p O�J .�?•"' ••• •'• .,: �•.•.'... 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T T cV ttVV cm N C04 N w m 1� EI W m `m 0 T 1p Q) W z J W a 00 U) N i n HRA OPERATING BUDGET SUMMARY rl ACCOUNT DESCRIPTION ADMIN CHARGES n ` PERSONAL SERVICES * OFFICE SUPPLIES n J OPERATING SUPPLIES REPAIR & MAINTENANCE SU �I SNALL TOOLS & MINOR EUI r-, 'i ` SUPPLIES * * n n PROFESSIONAL SERVICES DUES & SUBSCRIPTIONS COMMUNICATIONS TRANSPORTATION ADVERTISING PRINTING & BINDING INSURANCE, NON- PERSONNE CONFERENCES & SCHOOLS UTILITY SERVICES SRVS CONTRACTED NON -PRO RENTALS BUDGET 1995 1992 1993 1994 ACTUALS ACTUALS BUDGET ESTIMATE 169,561 174,376 ------ - - - - -- -- ---- - - - - -- ------ 169,561 - - - - -- - 174,376 142 229 250 118 829 200 251 260 1,309 PERCENT 1994 1995 INCREASE/ ESTIMATE BUDGET (DECREASE) 184,905 185,154 6 -- - - - - -- ------ 184,905 - - - - -- 185,154 ------- - - - - -- 6 11 250 5 537 400 100 260 1,309 450 548 650 44 241,402 63,861 128,000. 78,039 341,265 167 287 503 405 466 425 5 663 924 800. 426 875 9 207 6 600 600 IMPS OTHER THAN BUILDIN 116,350 18,503 355,170 287,115 w 19,860 3,269 33,000 24,233 33,000 1,933 1,730 2,750 .790 2,750 5,075 10,468 13,832 6,454 6,075 56- 1,889 708 1,600 683 1,600 5,948 4,773 2,800 4,280 3,300 18 52,818 33,948 78,583 78,820 320,928' 308 40 MISCELLANEOUS 13 4,690 129,850 18,000 PAYMENTS TO OTHER GOVTS 368,500 343,987 315,046 155,300 315,046 - OTHER SERVICES & CHARGE -------- - -- - 698,595 --- -- - - -- -- -- 468,907 ----- - -- -- -- 577,416 -- -- -- -- -- 479,341 - --- -- - - - - -- - --- ------ - -- 1,043,864 81 LAND 4,749,411 271,192 177,740 143,970 3,677,150 1,969 BUILDING 68,470 IMPS OTHER THAN BUILDIN 116,350 18,503 355,170 287,115 25,170 93- PUBLIC UTILITY & IMPROV h !j t_ 4 l °.. mow 0im . .wswwiaii(. ,.ww ww3 »w..�rwR':. �.u.+.. w... .+y►��..y.r �r � iravis+}#d�l'' . r^ 4 =r �rl rl z��J� '� ��•. fir:.. ys°}Y i :#^. 1�:� t e w , _ " - -4 t C v 600 x' -' - 3 't�� -:. i +$ ... � � fir; �. -, - y •' �, II BUDGET 1995 HRA OPERATING BUDGET 7 PERCENT 1994 1995 INCREASE/ ACCOUNT DESCRIPTION BUDGET BUDGET (DECREASE) f ! A VIDE �07 ADMIN CHARGES 174,376 185,154 6 LEVEL TEXT TEXT ANT 1 1994 BUDGET 174306 X 3Z 179,607 ADMIN OVERHEAD 3,214 MICRO COMPUTER CHARGE 703 MINI COMPUTER 1,630 (� - ----- -- - - -- -- 185,154 ------ - - - - -- ------ - - - - -- PERSONAL SERVICES 174,376 185,154 1 14220 ------- - - - - -- 6 OFFICE SUPPLIES 250 250 LEVEL TEXT TEXT AMT 1 AGENDA PREP 250 I� 4221 OPERATING SUPPLIES 200 400 100 LEVEL TEXT TEXT AMT 1 CORP REP FACT BOOK/MN BUS ALMANAC 100 FILM 100 ii FILM PROCESSING 200 400 725 SMALL TOOLS 8 MINOR EUIP --- --- - -- - -- - ----- - - - - -- ri° SUPPLIES 450 650 ------ - - - -- -- 44 I� 4330 PROFESSIONAL SERVICES 128,000 341,265 167 LEVEL TL7(T TEXT AMT 1 AUDIT FEES 2,500 BARKA GUZY 10,000 BGS -SUH CONDEMNATION 20,000 i BGS -APT CONDEMNATION 20,000 CASSERLY (10000 INCREASE FOR SW QUAD AND LAKE) 50,000 RELOCATION CONSULTANT -SW QUAD 75,000 i BUSCH; L.AKEPOINTE WING 22,000 NONPROGRAMMED STUDIES 25,000 MACROMEDIA (50X TO BE REIMBURSED) 20,000 OMEARA/LAKE POINTE BOND ROLLOVER 10,000 PHASE II AUDIT SW QUAD 5,510 PHASE 11 AUDIT LAKE POINTE 4,181 n PHASE I AUDIT APARTMENTS 10,000 II PHASE 11 AUDIT APARTMENTS 10,000 PHASE I AUDIT FRANK'S USED CARS 2,574 r BUDGET 1995 HRA OPERATING BUDGET PERCENT 1994 1995 INCREASE/ ACCOUNT DESCRIPTION BUDGET BUDGET CDECREASE) PHASE 1I AUDIT FRANK'S USED CARS 20,000 NONPROGRAMMED AUDITS 10,000 SITE SURVEY FOR APT PROPERTY SW QUAD 3,000 SOIL TESTS FOR SW QUAD 1,000 COUNTY WASTE MGMT FEE S00 REMEDIATION PLANS FOR SOIL CLEANUP 20,000 --- ----- -- - --- 341,265 4331 DUES & SUBSCRIPTIONS 405 425 5 LEVEL TEXT TEXT AMT 1 MN REAL ESTATE JOURNAL 100 AMERICAN ECONOMIC DEVELOPMENT COUNCIL 280 CORPORATE REPORT 25 TWIN CITY BUSINESS MONTHLY 20 425 4332 COMMUNICATIONS 800 875 9 LEVEL TEXT TEXT AMT 1 POSTAGE 700 PHONE 175 - - - - -- - ------- 875 4333 TRANSPORTATION 600 600 LEVEL TEXT TEXT AMT 1 EDC OR NAHRO CONFERENCE --- -- 600 -- - - - - - -- 600 4334 ADVERTISING 33,000 33,000 LEVEL TEXT TEXT AMT 1 LEGAL ADS FOR TIF DISTRICT 2,000 LAKEPOINTE ADS 30,000 RFPS 1,000 33,000 4335 PRINTING & BINDING 2,750 2,750 LEVEL TEXT TEXT AMT 1 RFP 500 COPIER ALLOCATION 625 ANNUAL REPORT IN CITY NEWSLETTER 1,500 2,625 4336 INSURANCE, NON - PERSONNEL 13,832 6,075 56- n *A OPERATING BUDGET it 1994 ACCOUNT DESCRIPTION BUDGET n � 1 ESTMATE FROM FINANCE BUDGET 1995 PERCENT 1995 INCREASE/ BUDGET (DECREASE) n ..37 CONFERENCES 8 SCHOOLS 1,600 1,600 LEVEL TEXT 1 LUNCH AND BREAKFAST MEETING REIMBURSEMENTS CONFERENCE LUNCHES r"1 COMMUNITY DEVELOPMENT DIRECTOR CONF MISCELLANEOUS J38 UTILITY SERVICES 2,800 3,300 LEVEL TEXT 1 LAKE POINTE ELECTRICITY FOR IRRIGATION LAKE POINTE WATER CHARGES 4340 SRVS CONTRACTED NON -PROF 788583 320,928 ^ LEVEL TEXT 1 COURIER SERVICE n LAKE POINTE MAINTENANCE SERVICE LAKE POINTE TREE /FERTILIZER SERVICES SPRINKLER MAINTENANCE SUH DEMOLITION APT DEMOLITION REVIEW APPRAISAL APTS FULL APPRAISAL APTS FIXTURE APPRAISAL SUH MISCELLANEOUS APPRAISAL POSSIBLE MGMENT FEES FOR APTS 4341 RENTALS �46 MISCELLANEOUS 18,000 LEVEL TEXT 1 MCGLYNN'S PAY AS YOU GO EXPENSE PFW /OSBORNE CROSSING PAY AS YOU GO EXPENSE ^ __50 PAYMENTS TO OTHER GOVTS 315,046 315,046 LEVEL TEXT 1 PAYMENTS TO SCHOOL DISTRICTS 6,075 -------- - - - - -- 6,075 TEXT AMT 500 100 500 500 -------- - - - - -- 1,600 18 TEXT AMT 300 3,000 -------- - - - - -- 3,300 308 TEXT AMT 250 21,000 5,000 10,000 65,558 181,620 1,200 5,300 6,000 15,000 10,000 320,928 TEXT AMT 10,000 8,000 ---- ---- - -- --- 18,000 TEXT AMT - - - -- 315,046 315,046 -7 I� I BUDGET 1995 HRA OPERATING BUDGET PERCENT 1994 1995 INCREASE/ ACCOUNT DESCRIPTION BUDGET BUDGET (DECREASE) --- --- ------ * OTHER SERVICES 8 CHARGE 577,416 --- --- ---- -- 1,043,864 --- ----- - -- -- 81 4510 LAND 177,740 3,677,150 1,969 4530 IMPS OTHER THAN BUILDING 355,170 25,170 93- LEVEL TEXT TEXT AMT 1 PLAZA AREA TREE REPLACEMENT 10,670 TWO SPARE DECORATIVE LIGHTS 4,500 BANNERS FOR MISSISSIPPI STREET 10,000 - ---- -- - --- - -- 25,170 ------ - - - - -- * CAPITAL OUTLAY 532,910 ----- -- - - - -- 3,702,320 - ------ - - - - -- 595 ** 1,285,152 4,931,988 284 ------ - - - - -- *** 1,285,152 ------ - - - - -- 4,931,988 ------- - - -- -- 284 -- ---- - - - --- **** AREA WIDE 1,285,152 ------ - - - - -- 4,931,988 --- ---- - - - - -- 284 -7 I� I 1995 HOUSING COORDINATOR BUDGET OVERVIEW (.OPERATING EXPENSES AND CAP11AL OUTLAYS II. HOUSING PROGRAMS 1) Home Improvement "Gap" Loans 2) Home Mortgage Assistance (Deferred Loans) 3) Southwest Quad Homebuyer Assistance Fund 4) Rental Rehab Matching" Loans 5) Last Resort Housing Rehab Program TOTAL FUNDS BUDGETED 1995 1994 $520,970 $39Z678 $50,000 $120,000 $80,000 $200,000 $0 N/A $500,000 $252,000 $300,000 N/A $930,000 $572,000 $1.450,970 $964,678 HOUSING COORD FUND (262) ACCOUNT DESCRIPTION HOUSING PROGRAM 4101 FULL TIME EMPLOYEE -REG 4102 REGULAR 0/T PAY 4104 TEMPORARY EMPLOYEE -REG 4105 TEMP EMPLOYEE-OVERTIME 4112 EMPLOYEE LEAVE 4120 MEDICARE CONTRIBUTIONS 4122 SOCIAL SECURITY CONTRIB 4125 ICMA CONTRIBUTION 4131 HEALTH INSURANCE 4132 DENTAL INSURANCE 4133 LIFE INSURANCE 4134 CASH BENEFIT 4150 WORKERS COMPENSATION * PERSONAL SERVICES 4220 OFFICE SUPPLIES 4221 OPERATING SUPPLIES 4229 FORK ORDER TRANSFER -PARTS * SUPPLIES 4330 PROFESSIONAL SERVICES 4331 DUES & SUBSCRIPTIONS 4332 COMMUNICATIONS 4333 TRANSPORTATION 4334 ADVERTISING 4335 PRINTING & BINDING 4336 INSURANCE, NON - PERSONNEL 4337 CONFERENCES & SCHOOLS 4338 UTILITY SERVICES 4340 SRVS CONTRACTED NON-PROF 4346 MISCELLANEOUS 4350 PAYMENTS TO OTHER GOVTS * OTHER SERVICES & CHARGE 4510 LAND 4520 BUILDING 4560 FURNITURE & FIXTURES * CAPITAL OUTLAY 4750 MORTGAGES * OTHER FINANCING USES BUDGET 1995 ** HOUSING PROGRAM 53,468 319,255 402,193 520,970 63 PERCENT 1993 1994 1994 1995 INCREASE/ ACTUALS BUDGET ESTIMATE BUDGET (DECREASE) 24,820 34,604 34,226 37,320 8 1,200 20,000 875 21,560 8 1,993 4,344 3,887 4,685 8 406 565 564 609 8 1,734 2,415 2,414 2,604 8 1,219 1,745 1,670 1,882 8 1,212 2,111 2,111 2,304 9 105 180 180 180 12 51 51 51 150 1,225 211 1,320 8 32,851 67,240 46,189 72,515 8 237 500 113 500 251 700 16 500 29- 488 1,200 129 1,000 17- 13,382 13,065 14,267 40,435 209 20 200 105 200 700 512 1,500 114 164 300 116 600 100 756 7,000 918 5,000 29- 203 1,750 169 1;750 494 900 2,136 1,500 67 345 300 3,412 26,900 32,471 30,670 14 4 1,870 34,750 18,431 50,815 52,913 116,705 130 200,000 302,962 315,000 58 15,750 1,698 1,698 200,000 302,962 330,750 65 ** HOUSING PROGRAM 53,468 319,255 402,193 520,970 63 r.. BUDGET 1995 HOUSING COORD FUND (262) PERCENT 1994 1995 INCREASE/ ACCOUNT DESCRIPTION BUDGET BUDGET (DECREASE) iUSING PROGRAM -01 FULL TIME EMPLOYEE -REG 34,604 37,320 8 'o' LEVEL TEXT TEXT AMT 1 )OO= -------- 37,320 - - - - -- 37,320 t,02 REGULAR 0/T PAY 4104 TEMPORARY EMPLOYEE -REG 20,000 21,560 8 LEVEL TEXT TEXT AMT 1 INSPECTOR FOR REHAB PROGRAM 290 HOURS X S27 /HR = 7,830 REHAB COUNSELOR $13.20/HR X 20 MRS/WK X 52 WKS 131730 21,560 705 TEMP EMPLOYEE-OVERTIME 12 EMPLOYEE LEAVE 4,344 4,685 8 4120 MEDICARE CONTRIBUTIONS 565 609 8 ' 22 SOCIAL SECURITY CONTRIB 2,415 2,604 8 25 ICMA CONTRIBUTION 1,745 1,882 8 4131 HEALTH INSURANCE 2,111 2,304 9 ,032 DENTAL INSURANCE 180 180 33 LIFE INSURANCE 51 51 „34 CASH BENEFIT 4150 WORKERS COMPENSATION 1,225 1,320 8 PERSONAL SERVICES 67,240 72,515 8 4220 OFFICE SUPPLIES 500 ^ 500 LEVEL TEXT TEXT AMT 1 MISC. SUPPLIES FOR REHAB INSPECTOR AND REHAB COUNS ^ ELOR 500 - -- -- ---- - ----- 500 121 OPERATING SUPPLIES 700 500 29- 29 WORK ORDER TRANSFER -PARTS • SUPPLIES 1,200 1,000 17- ^ 30 PROFESSIONAL SERVICES 13,065 40,435 209 LEVEL TEXT ^ TEXT AMT 1 1) REHAB PROGRAM CASSERLYIS ASSISTANCE WITH LENDER AGREEMENTS 2,500 2) SCATTERED SITE ACQUISITION ^ CASSERLY$S ASSISTANCE WITH LOBBYING & LEGISLA- TIVE CHANGES ON TIF 2,500 JIM HOEFT'S ASSISTANCE WITH PROPERTY ACQUIS- ITION AND LAND SALES 11,000 3) HOUSING FOCUS GROUPS 11,370 - 4) HOUSING PROGRAM MARKETING ^ 3,000 BUDGET 1995 HOUSING COORD FUND (262) PERCENT 1994 1995 INCREASE/ ACCOUNT DESCRIPTION BUDGET BUDGET (DECREASE) 5) WELLNESS TESTING 65 6) BOND COUNSEL 10,000 ----- ------ --- 40,435 4331 DUES & SUBSCRIPTIONS 200 200 4332 COMMUNICATIONS 700 1,500 114 LEVEL TEXT TEXT AMT 1 INCREASED COST DUE TO REHAB COUNSELOR 1,500 ---- ---- ------ 1,500 4333 TRANSPORTATION 300 600 100 LEVEL TEXT TEXT AMT 1 INCREASED COST DUE TO REHAB COUNSELOR 600 - - -- ------ ---- 600 4334 ADVERTISING 7,000 5,000 29- LEVEL TEXT TEXT AMT 1 1) ADS IN FRIDLEY FOCUS 4,000 2) HOUSING BROCHURES 1,000 - ----- ---- ---- 5,000 4335 PRINTING & BINDING 1,750 1,750 4336 INSURANCE, NON - PERSONNEL 4337 CONFERENCES & SCHOOLS 900 1,500 67 LEVEL TEXT TEXT AMT 1 1) NAHRO CONFERENCES 500 2) MHFA TRAINING 500 3) HOUSING CODE ENFORCEMENT CLASSES ----- 500 ----- -- -- 1,500 4338 UTILITY SERVICES 300 LEVEL TEXT TEXT AMT 1 CHARGES FOR UTILITY SERVICES AT SCATTERED SITE PROPERTIES - ------ 300 -- ----- 300 4340 SRVS CONTRACTED NON -PROF 26,900 30,670 14 LEVEL TEXT TEXT AMT 1 COMPUTER MAINTENANCE 250 PRINTER MAINTENANCE 250 PROPERTY APPRAISALS (SCATTERED SITE) 7 X $275 1,925 - BUDGET 1995 HOUSING COORD FUND (262) PERCENT 1994 1995 INCREASE/ ACCOUNT DESCRIPTION BUDGET BUDGET (DECREASE) DEMOLITION (SCATTERED SITE) 7 X $3,000 + $770 21,770 - DEMOLITION PREPARATION (SCATTERED SITE) 7 X $200 1,400 LOT SURVEYS (SCATTERED SITE) 7 X $275 1,925 ASBESTOS & ENVIRO REVIEWS (SCATTERED SITE) 1,400 WELL CAPPING (SCATTERED SITE) 1,750 30,670 4346 MISCELLANEOUS 050 PAYMENTS TO OTHER GOVTS 34,750 - LEVEL TEXT TEXT AMT 1 ADMIN FEE TO ACCAP FOR MSG ADMINISTRATION 1,750 ADMIN FEE TO ACCAP FOR LAST RESORT HOUSING FUND 33,000 34,750 OTHER SERVICES & CHARGE 50,815 116,705 130 4510 LAND 200,000 315,000 58 LEVEL TEXT TEXT AMT 1 PROPERTY PURCHASES (SCATTERED SITE) --------- 315,000 - ---- 315,000 4220 BUILDING 15,750 - LEVEL TEXT TEXT AMT 1 MATCH FOR 1995 HOME PROGRAM 15,750 15,750 4560 FURNITURE & FIXTURES CAPITAL OUTLAY 200,000 330,750 65 4750 MORTGAGES OTHER FINANCING USES " HOUSING PROGRAM 319,255 520,970 63 Housing Programs 1995 Home Improvement "Gap" Loans Loans to fill gaps in loan requests on a case —by —case basis. Loan repayment is deferred until the home is sold. The maximum loan is $3,750. Home Mortgage Assistance Loans Loans to assist borrowers with down payment and closing costs associated with buying or refinancing and fixing —up a home. The maximum deferred loan is $6,000. Southwest Quad Homebuver Assistance Special fund designed to assist first —time buyers in purchasing a townhome in this development Money could be used for entry costs such as the down payment and closing costs. The maximum deferred loan is $6,000. Rental Rehabilitation "Matching° Loans Loans to assist owners of rental property; program would be combined with MHFA funds. The maximum matching loan would be the lesser of $4,000 per unit or $20,000 per building. Last Resort Housing Rehab Fund Deferred loans to homeowners who are unable to qualify for one of the existing home rehabilitation programs. Program would be limited to code repairs and loan would not exceed $10,000. city Hyde Wide Park $25,000 $25,000 $0 $40,000 $0 $0 $500,000 $0 $300,000 $65,000 $865,000 GRAND TOTAL $930,000 r' I i n LEGAL SERVICES FOR THE HRA 1994 OPERATING FUND 1. Casserly Molzahn Amount Expended $36,423 2. Barna Guzy $4,126 Does not include December 1994 billing. HOUSING FUND 1. Casserly Molzahn $1,670 2. Barna Guzy $11,595 ` Total $13,265 Does.not include December 1994 billing. r, Amount Budgeted $40,000 $10,000 $19,000 total for legal services $19,000 total for legal services Community Development Department,-. HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: February 2, 1995 TO: William Burns, Executive Director of HRA 440 FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Neighborhood Meeting for Southwest Quadrant The neighborhood meeting on the Southwest Quadrant is to be conducted on Thursday, February 2, 1995. Because of the timing of publication of the agenda packet, a written update is not possible. I will, however, provide a verbal update to the HRA as to what happened at the meeting. The meeting is to be facilitated by Councilman Billings. I am giving a presentation about the purpose of the redevelopment project, the proposed process, and providing information to the neighborhood as to how they can participate. A developer, represented by Todd Stutz, will be presenting the development concept as was presented to the City Council and the HRA at its joint meeting in December. BD /dw M -95 -76 r � Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: February 2, 1995 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Lake Pointe Meetings Griffin Corporate Advisory Services and a developer from the Chicago area have requested a meeting on Wednesday, February 8, 1995 about a potential building on the Lake Pointe property. A client has apparently expressed an interest in corporate office space of 40,000 - 50,000 square feet; however, Griffin and the Chicago area developer believe that they would be interested in a building twice that size. In the meantime, we have met with Jim Casserly and are preparing options as to how the HRA would provide assistance to potential users of the site, especially if there is more than one user. More information about the meeting and other issues will be presented at the meeting. BD /dw M -95 -78 Community Development Department D PLANNING DIVISION City of Fridley DATE: February 2, 1995 TO: William W. Burns, City Manager FROM: Barbara Dacy, Community Development Director RE: Burger King and Northeast State Bank Two potential projects have come up at the same time, and about the same sites. Dennis Trissler and Mahendra Nath have requested that information about alternative sites for the Burger King. Further, Ben Rasmussen from Northeast State Bank is investigating sites for a new bank in Fridley. Although I have not completed an extensive study, two sites come to mind for each use. The northeast quadrant has long been the site for the Burger King as an endcap to the strip mall which was approved by the Council in 1991. I have called Lowell Wagner, and will be talking to him in more detail about Nath's interest. Having a combined use of the Burger King and the bank at this site would not be prudent, based on the traffic generated from these buildings.. Another concept is that one or the other use could occupy the northeast quadrant. However, the project value does not come near the original value of the strip mall project ($2.5 million). The other site is the former "Gateway" site at the northeast corner of 57th Avenue and University Avenue. I have retrieved the file from the tunnel, and found the old site plan originally proposed by Winfield Development and Crosstown Bank. I am sending a copy of that development plan to both Burger King and Northeast State Bank. While that development anticipated that the Rapid Oil building would be removed, there may be some opportunity to work around the building, or the HRA could consider acquisition of the Rapid Oil building. Representatives from both Burger King and Northeast State Bank are very interested in a location in Fridley. Because both of them have asked me to contact the Council and the HRA about potential interest in these developments, I thought I would document their interest, and ask that you forward this on for the Council packet and the HRA packet. Both sites are in Councilman Billings' ward, and he may want to review these issues as well. If you have any questions, please feel free to contact me. Enc. M -95 -75