Loading...
HRA 03/09/1995 - 6286HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, MARCH 9, 1995 7:30 P.M. PUBLIC COPY CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, MARCH 9, 1995 7:30 P.M. Location: Council Chambers Fridley Municipal Center CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: February 9, 1995 CONSENT AGENDA: AUTHORIZE 1995 HOME FUND APPLICATION TO . . . . . . . 1 - 1B ANOKA COUNTY AND AUTHORIZE HRA MATCHING FUNDS CONSIDER ACQUISITION OF THREE SCATTERED -. . . . . . . 2 - 2C SITE PROPERTIES: 6200 - 2ND STREET 540 HUGO STREET 533 JANESVILLE STREET CONSIDER APPROVAL OF RESOLUTION AND . . . . . . . . . 3 - 3R MEMORANDUM OF UNDERSTANDING WITH NORTHEAST STATE BANK TO PARTICIPATE IN MHFA / FRIDLEY HOME IMPROVEMENT PROGRAM CONSIDER ACQUISITION OF ANOKA COUNTY. . . . . . . . . 4 - 4B PROPERTY AT 6765 EAST RIVER ROAD MONTHLY HOUSING REPORT . . . . . . . . . . . . . . . . 5 - 5A REVENUE AND EXPENSES . . . . . . . . . . . . . . . . . 6 - 6B ACTION ITEMS• CONSIDER AWARD OF BIDS FOR SCATTERED -SITE . . . . . . 7 - 7A PROPERTIES CONSIDER RESOLUTION AUTHORIZING HOUSING . . . . . . . 8 - 8B REPLACEMENT PLAN LEGISLATION CONSIDER APPROVAL OF 1995 HRA BUDGET. . . . . . . . . 9 - 9B (PLEASE BRING BUDGET BOOKLET FROM FEBRUARY PACKET) INFORMATION ITEMS: NONE. OTHER BUSINESS: ADJOURNMENT CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 9, 1995 CALL TO ORDER: Chairperson Commers called the February 9, 1995, Housing and Redevelopment Authority meeting to order at 7:35 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, Jim McFarland Members Absent: John Meyer, Duane Prairie Others Present: William Burns, Executive Director Barbara Dacy, Community Development Director Jim Casserly, Financial Consultant Grant Fernelius, Housing Coordinator Craig Ellestad, Accountant James Hoeft, HRA Attorney Lee Arman, 8125 Riverview Drive Peggy Brown, 170 Liberty Street N.E. APPROVAL OF JANUARY 12 1995 HOUSING AND REDEVELOPMENT AUTHORITY MINUTES• MOTION by Mr. McFarland, seconded by Ms. Schnabel, to approve the January 12, 1995, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. APPROVAL OF AGENDA: Mr. Commers requested that discussion of the 1995 HRA Budget be held at the March meeting. MOTION by Ms. Schnabel, seconded by Mr. McFarland, to approved the agenda as amended. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA: 1. RESOLUTION TO APPROVE A LOAN FOR DAVID STEWART, MOORE LAKE APARTMENTS Mr. McFarland asked if Commission members can assume their concerns have been addressed when it comes to final approval. HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 2 Ms. Schnabel also expressed concern. There was lengthy discussion in the August 1994 minutes, and she was not sure those items had been addressed concerning the Moore Lake Apartments. She was not at the August meeting. The concerns were expressed by Mr. McFarland, Mr. Meyer, and Mr. Commers. If they are comfortable, she has no problem with approval. Ms. Dacy stated it was her understanding of the discussion that there will be a guarantee provided by the owner. Mr. Casserly has assured her this will be done and the resolution provides for a guarantee and enforces that. Mr. Commers stated the Resolution, Section 3, Paragraph 3.01, states, "Upon execution and delivery by the Redeveloper to the Authority of a note, mortgage, and guarantee in a form satisfactory to the Officers." Who are the officers? Mr. Casserly stated the officers are the Executive Director and the Chairman of the HRA. This is a very simple document and provides a guarantee. 2. RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES 3. REVENUE AND EXPENSES 4. MONTHLY HOUSING REPORT MOTION by Ms. Schnabel, seconded by Mr. McFarland, to approve a Resolution Authorizing a Loan and the Delivery of Funds By and Between the Housing an Redevelopment Authority In and For the City of Fridley and 5701 General Partnership; to approve a Resolution Designating Official Depositories for the Fridley Housing and Redevelopment Authority; to approve check register #25399 through #25433 as submitted; and to approve the Monthly Housing Report as submitted. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Ms. Schnabel stated the question was raised regarding the Moore Lake Apartments that we should look into establishing a set of rules in the event a similar situation should arise in the future. Ms. Dacy stated staff will develop those types of guidelines when discussing programs for the Hyde Park area and will submit them to the HRA for review. HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 3 ACTION ITEMS• 5. PUBLIC HEARING ON SALE OF SCATTERED SITE ACQUISITION LOTS: 187 Longfellow Street 6409 East River Road 8280 East River Road 677 Hugo Street 539 Glencoe Street 547 Glencoe Street MOTION by Ms. Schnabel, seconded by Mr. McFarland, to open the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPEN AT 7:40 P.M. Mr. Commers stated the above listed properties are to be sold. The two properties located at 539 Glencoe and 547 Glencoe are to be sold as one buildable lot. The sites have been cleared of any structures. The HRA is proposing that only new single family homes be constructed. The lots are to 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. A summary of the bid package and the development agreement has been provided previously. 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 that time, the buyer would submit plans and drawings to the HRA for review and approval. After approval, the buyer would proceed with construction after obtaining all building permits, etc. Mr. Fernelius stated the lots were acquired through the scattered site program and will now be sold. Before selling those lots, State statutes require there be a public hearing which is being held at this time. He reviewed the format for the public hearing. Mr. Fernelius provided the background for the scattered site program which began last year. The purpose is to acquire and remove substandard and dilapidated housing which is considered a neighborhood blight. By doing this, they provide an opportunity to construct new homes, improve the neighborhood in appearance and property values, and hopefully encourage surrounding homeowners to make improvements to their property. This is a voluntary program so the HRA must come to an agreement with the property owner to acquire the property. The plan is to sell those lots which are HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 4 considered buildable to potential home builders. Eight parcels were acquired and six parcels are being sold (the two parcels on Glencoe Street are to be combined into one buildable lot). Mr. Fernelius stated design guidelines have been established for the builders to follow. They are recommending that new, single family homes be constructed on the sites with a minimum of two bedrooms with a third bedroom desirable, one bathroom plus a 1/2 bath roughed in or preferably two bathrooms. In addition, the homes must have a two -car garage, either attached or detached. It is desirable that the homes have low maintenance siding. Other criteria include that the new homes fit in with the existing neighborhood as much as possible and the front and side yards be landscaped. All construction must comply with current building codes. The HRA would then have the ability to approve the building plans before a permit would be issued. Mr. Fernelius stated the properties would be sold to the highest bidder contingent upon the buyer entering into a development contract with the HRA. If the buyer refuses, the HRA would retain the earnest money and could proceed with another buyer. The buyer would have to build a home according to the design guidelines, provide a letter of credit and a provide mortgage to the HRA for the land. The HRA would approve the plans in May, and construction could hopefully start in June with a completion date in September. Mr. Commers asked if that time frame and design criteria were included in the bid package. Mr. Fernelius stated yes. Also included in the bid package are the bidding procedures, a process that is outlined in terms of what the buyer must comply with, what the buyer must provide, information on the lot size, zoning, utility services, etc. The bid package will also include a copy of the sale and development agreement, a sample letter of credit, a sample mortgage, and a sample note. Mr. Commers asked if the forms were simple to fill out. Mr. Fernelius stated that only one form on one page needs to be submitted. Mr. Commers opened the meeting to public comment. Ms. Brown stated she lived next to the parcel located at 187 Longfellow Street. She asked if there was any control on the buyer not building a rental property? Mr. Fernelius stated this can be controlled to the extend that the buyer is building a single family home. If the home is sold to a home buyer who later decides to rent the property, we have no control over that just as we have no control over any other single HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 5_ family homes. The HRA's intent is for the buyer to construct a single family home. Mr. Commers asked if the mortgage requires the owner to live in the. home. Mr. McFarland stated he did not think so. It is difficult today to make it worthwhile to have a new single family home as a rental unit. Ms. Brown expressed concern about drainage. Due to people redoing things on their property, the land has gotten built up. The backyards were originally a drainage area. The landscaping in the neighboring houses has filled this up. She has a problem in the spring, before the frost -line goes out, with water melting and collecting, and they have a lake in the back yard. Once the frost is out of the ground, the water drains. How can she go about having the City come out and check the drainage? Would this be an opportune time to have the City check this to see if something can be done and make sure the landscaping on the vacant is done appropriately? Ms. Dacy stated the City could have engineering staff evaluate the site and address the situation. She recommended staff contact her in the spring to get more information so staff are sure to understand the problem and point this out to the buyer of the property. Ms. Brown asked if there was any way they can be assured that something can be done. Ms. Dacy asked Ms. Brown to call staff at any time after the home goes up. Ms. Brown asked to clarify if she should call before the home goes up or after. Ms. Dacy stated it would be advantageous to have staff go out prior to conveying the lot to make the potential buyer aware of the situation and again review it when then the specific site plan is submitted. Ms. Brown stated, over the years, people have put up garages and /or remodelled, placed the remaining soil in other parts of their yard and landscaped which has changed the drainage. Her property is to the north of the vacant parcel and the problem occurs in the southeast corner of her property. The properties in that area are offset. Mr. Commers asked if there was a drainage ditch in the back. HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 6 Ms. Brown stated this was originally an alley but this has not been used as an alley since they moved into the property. They put up a fence which is one -foot on their side of the center of the alley. People on both sides use that one foot. Whoever buys the property may question that. There is a drain on Ashton Street. Mr. Commers stated the drainage would have to be looked at when placing a house and before doing any actual site work and site preparation. He recommended Ms. Brown call staff so they are alerted and also to call if she notices anyone moving dirt on the site. Mr. Arman stated his property adjoins the lots on Glencoe Street. He came because he was interested in the plans to build but he understands that this is not a buildable lot. He asked if there were lots that will never be built on. Mr. Fernelius stated the lot in question is 683 Glencoe. This is one of two properties currently considered non - buildable. In a different location, they are considering acquiring adjacent properties in order to combine the parcels into a buildable lot. This lot should remain vacant for the near term. Mr. Arman stated there is an area near this lot which is a park. There is also a neighbor doing a major renovation. Mr. Commers stated that perhaps the landowner might be interested in the lot to add to his property. Mr. Arman asked if there would be minimum bids. Mr. Fernelius stated the bids would be presented at the March meetings. The HRA will decide at that time -what is or is not acceptable. Mr. McFarland stated there is no minimum bid, but the HRA reserves the right to reject a bid. Mr. Arman stated the lot he is concerned about is considered non - buildable at this time. For the other lots that are buildable, would consideration be given to adjacent property owners to purchase and not build. Mr. Fernelius stated the intent of the program is to have a new home constructed. Mr. Arman stated the schedule seemed aggressive. He thought it was a wonderful thing that is being done. As one that has property in the neighborhood, this property was vacant and in disrepair. Many people think this is a good program. HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 7 Mr. McFarland stated lot #6 is non - buildable. Will the HRA consider those neighbors who might have an interest in the property? Mr. Fernelius stated staff had not developed a recommendation. The plan is to sell the buildable lots first and then consider what to do with the other properties. He would make a recommendation in the future. Ms. Dacy stated this will occur fairly quickly to minimize the on- going costs. A logical option is to approach adjacent property owners. Staff must consider the process that this would entail. Mr. Commers asked if there was some other viable option. Mr. Fernelius stated the down side to keeping the properties is the cost of maintaining. There is the possibility of land banking. The logical option would be to sell to an adjacent property owner. Staff needs to spend more time on this. Ms. Brown asked if it would be advantageous to have landowners on them for the tax revenues. Ms. Dacy stated yes. Mr. Commers stated that makes sense. Staff are looking at it. It sounds as if it may be one of those things the HRA may do. MOTION by Ms. Schnabel, seconded by Mr. McFarland, to close the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 8:05 P.M. Ms. Schnabel stated there are no minimum bids established. Are there any guidelines in terms of the dollar amount of the bids? Is what was paid for the lots relevant in terms of the bids? Mr. Hoeft stated the process is a sealed bid and the bidder knows the bid will go to the highest bidder. If there is not the desire for the lots and the bids are not what staff and the HRA think the property is worth, the bids can be rejected. Ms. Schnabel stated she is trying to get a handle on just what the property is worth. Mr. Fernelius stated a value has been assigned as part of the appraisal for the land. This could be used as a reference point as far as whether a bid is acceptable. HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 8 Mr. Commers asked what the HRA could use as a basis. How do they know whether to sell a lot for the bid price or not sell? Mr. McFarland asked, if a bid is rejected, do we have to rebid. Mr. Hoeft stated, as far as the value of the land, different people will give different values. Because of the nature of the program, if for example the best bid is $3,000, the land is obviously worth more. The question is do you want to go forward on the value of the best bid that you get in order to get single family homes on the property knowing it is unlikely the HRA would get back out what has been put in. Staff can provide some guidance on that. There is a land value and appraisal report. The HRA can also, from their general real estate knowledge of the area, estimate a buildable lot would generally sell for x dollars. Staff will provide as much guidance as possible. We can look to the County to determine the value for tax purposes, which provides a point of reference. Mr. Commers asked if the County determines a value of the land only for tax purposes? Does the assessor assign a value? Ms. Dacy stated the County determines a value for tax purposes. She did not know if the assessor assigned a value and would check with their office to see. Mr. Casserly stated, in theory, the land value should be the same. Mr. Hoeft stated, if there is an improvement on the property, the County has the land value and the building value. With the buildings gone, the County would take off the building value to see what the land is worth. Mr. Casserly stated the values are divided on the assessor's card but not on the tax statements. In this first round of bids, this is by far the best way to see what the results are going to be. The reason the HRA may want to experiment is because they may conclude it is better to take a reduced value for the land and have that put into structure. You may decide to give the lots away to the person who will build the most expensive structure. He is working with the House and Senate staff trying to design a housing replacement program with the state legislature. The goal of the program is to take parcels with substandard homes and replace them with as high value homes as is possible. They are trying to create a mini -tax increment district. In order to capture the value, the HRA may decide in the future that it is worth more to have more value in the homes. Mr. Commers stated the problem he sees is that someone would come in bidding on the land and are not necessarily be committed to doing anything on the building. How do we get a commitment up front? HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 9 Mr. Hoeft stated the present procedure requires that. The bidders are aware this is based on subsequent specifications for the home. Ms. Schnabel asked if the HRA can establish a minimum price home to be built on the properties. Mr. Hoeft stated the HRA could, but the guidelines in place will dictate a certain value of home in and of itself. The HRA has the sole discretion. This is weighted on the HRA's side to approve or not approve the proposed plan. The HRA will see the plans as they come in and will know from looking at the plans the value the homes will have. If the plan does not carry the value or has features that are not in line with the requirements, the HRA can discuss that with the builder to resolve. The guidelines will bring us to a value which will be comparable to existing properties. Ms. Schnabel stated, if someone is bidding a minimal amount for the lot, are you sure the builder will put up a quality home. The residents are relieved to see the substandard buildings removed, but they also do not want the same type of situation on their hands in the future. Mr. Hoeft stated the assurance the HRA has is that they are have the sole discretion to approve or reject the building plans presented. If someone comes in with a 900 square foot house, you can indicate this is not the type of home you had anticipated and the builder would have to redesign to your satisfaction. That is the control. Mr. Commers stated that perhaps the HRA would be better off getting a builder and giving them the lots for a price if they agreed to build a specific priced house. Mr. Fernelius stated staff had considered this option. Staff thought it would be a better process to see how the market would value those properties. It is a first step in a program that can be changed in the future. Ms. Schnabel asked how the lots are being advertised. Mr. Fernelius stated an ad would be placed in the Focus. Probably an ad would be place in the Builders' Exchange. Staff will contact directly those people who have contacted the City in the past as well as builders who have constructed homes in Fridley. 6. RESOLUTION AUTHORIZING EXPANSION OF REDEVELOPMENT PROJECT AREA NO. 1 AND CREATION OF TAX INCREMENT DISTRICT NO. 13 Mr. Casserly stated the expansion of the redevelopment area puts the HRA in a position to capture an increased value. HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 10 Mr. Commers asked, by creating this, does that subsequently create a downside for any other tax situation for the City. Mr. Casserly stated it does impact the local government act because this is a redevelopment district. The impact will be about 15 years out before there is a detrimental effect to the City. They are not going any further than that. They can decertify before the net effect of the impact is detrimental to the City. This is something they will have to watch. MOTION by Mr. McFarland, seconded by Ms. Schnabel, to approve the Resolution Modifying the Redevelopment Plan for Redevelopment Project No. 1 to Reflect Increased Project Costs and Increased Geographic Area Within Redevelopment Project No. 1, Modifying the 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 Creating Tax Increment Financing District No. 13 and Adopting a Tax Increment Financing Plan Relating Thereto. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Commers stated the last page of this agenda section is a modified schedule of expenses and he asked for additional information on the figures. Ms. Dacy stated this is what she was referring to in her cover memo. Some of these costs have been expended to provide the HRA with maximum flexibility for this project in the event other issues occur with the district. Mr. Casserly stated the HRA does not have before them a very substantial program document. This page is an insert into that document. This is increasing the eligible amount of costs for which you can use funds. Each time the document is amended, it is very expensive. The increases being generated do not come close to covering these costs. These costs are generous but they cannot be exceeded. Mr. Commers stated, when looking at the figures, he thought some items would be more expensive than proposed. Mr. Casserly stated the numbers can be moved around within the contract. Listed are general categories. The HRA must approve all expansion items. There could be additional amounts. There is a contingency of $200,000. Out of that, they could use the entire amount for relocation. Mr. Commers stated he understood it would be fairly simple to set up a budget and track it on a monthly basis. HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 11 Mr. Ellestad stated staff have a fund number designated for the Southwest Quadrant. They can also set up a project code. Ms. Schnabel stated she had asked this of Mr. Pribyl previously, and he indicated this would be very easy. Ms. Dacy stated staff had provided copies of the list of expenses which will be a part of the budget. They have taken some of the expenses already paid and some which have not been paid. They will use these costs to keep track of how contracts come in, etc. All of these costs are wrapped into the budget document in the appropriate slots. The one question that staff do not have much information on is the Fast Lube site across the street and the associated expenses. Mr. Burns has been working on this. Mr. Commers stated this is the HRA's first big project. Some money will be coming out of the general fund and will not be reimbursed. It would be nice, as far as the format is concerned, have a budget with columns showing the budgeted amount, monthly expenditures and year -to -date expenditures. It is still okay to make shifts between the categories. Mr. Commers asked Mr. Burns for additional information on the Fast Lube site. Mr. Burns stated this is a best guess on what the remediation plan would cost. If the environmental study goes normally, they could be faced with these costs. Later in the meeting, staff will be requesting $11,500 for a remediation investigation. If the amount of petroleum found in the groundwater is infinitesimal, the MPCA may say we do not need to go any further so there would be no additional expense._ However, if the amount found goes beyond acceptable levels, then there will be expenses for drilling monitoring wells and analysis estimated to be about $15,000. He estimated for budget purposes $20,000. It is also likely the City would be asked to excavate contaminated soil from the area where the tanks were located. The soil is incinerated and then disposed. This cost is estimated to be $20,000. The total could be $51,500. These are tentative numbers. There is no guarantee that these are typical. 90% of the costs should be reimbursed by the petrol fund. Mr. Commers stated this was not in the budget, but it is not significant. Ms. Dacy stated the remedial plan is accounted for on the list. Not accounted for is the drilling, monitoring, and /or excavation. Ms. Schnabel stated, if 90% is reimbursed, it will probably be a minimal cost to the HRA. HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 12 Mr. Burns stated, at some point, Ms. Dacy is taking quotes from one other consultant. Staff believe the costs should not exceed $11,500 as proposed. Staff is requesting the authority to spend this amount for a remedial investigation. Mr. Commers asked if the Phase 2 had been completed. Ms. Dacy stated this was held up based on the negotiations with the Suhs. A good portion of the Phase 2 audit was completed because the City owned.the fast food property. They have not been able to gain access to the Suh property and able to complete the remainder of the audit. Mr. Burns stated the remainder of the audit is that which must be done inside the building. They could not gain access to the interior of the building for a while, but now can. Mr. Commers asked if there was any testing underground. Mr. Burns stated there was not other than the tanks. There was a fuel oil tank there, and there is some leakage associated with that around the area. It does not look like a serious problem. MOTION by Ms. Schnabel, seconded by Mr. McFarland, to authorize staff to expend $11,500 to start the process of a remedial investigation. Mr. McFarland asked if the Fast Lube site was purchased from a major petroleum company. Ms. Dacy stated the site was purchased in 1981 from Amoco Oil. Mr. McFarland asked if they had signed anything regarding liability on the property. Ms. Dacy stated she was not sure and that she would check. Mr. Commers stated he would doubt it. This was not an issue at that time. Mr. Hoeft stated it appears that we can be reimbursed for 90% of the remediation costs from the petrol fund. If that is the case, it may be money better spent focusing time getting the reimbursement from the fund rather than taking some type of action from Amoco. Mr. McFarland stated they could write a letter to Amoco putting them on notice. The only cost is a stamp. Mr. Commers thought this was something staff should consider. He did not see a down side to that. HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE _13 There being no further discussion, Mr. Commers called for a vote. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 7. RESOLUTION CONDEMNING APARTMENT PROPERTIES LOCATED AT 155 TO 175 SATELLITE LANE 195 SATELLITE LANE, 211 SATELLITE LANE, AND 221 SATELLITE LANE Mr. Commers asked if the resolution would authorize a quick take or a general condemnation. Mr. Hoeft stated the fifth paragraph refers to a quick take. Mr. Commers stated the only issue with that is the fact being that we would have the property but with no development contract. Mr. Burns stated this was correct. However, he thought negotiations with the redeveloper had gone smoothly so far. Reports are that they have made great progress with the redeveloper and do not expect serious problems. Mr. Casserly stated there are other problems that could arise that we have no control over, such as a major change in the density with which the developer may not be comfortable. There are problems that need to be sorted out as we go. Discussed at the last meeting was an agreement for exclusive negotiations. This lays out a format so each party would need to do certain things. Even with an agreement, there was no guarantee that Rottlund would enter into a development agreement. The conversations we have had with them have been nothing but positive. There has been nothing to suggest we will not have an agreement. From that perspective, it seems reasonable. Mr. Commers that the only issue to him is that the HRA is at some risk. What will the ultimate dollar amount be with what has already been spent? This would be $4 million and $2 million has already been invested for a total of $6 million. Does that include the loan from the City? How is the $1.5 million loan being funded? How will they get their money back? Ms. Dacy stated the loan would be paid back through tax increment funds. Mr. Commers asked if this meant the HRA would have a net into the project of $4.5 million which will not be recaptured? Ms. Dacy stated they had talked about a net of $2.4 million exclusive to what was in the project prior to this year. The HRA will receive $1 million from the land sales. HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 14 Mr. Casserly stated the tax increment would be used to repay the City loan. Mr. Commers stated, if the HRA has $6 million in the project, and out of that $1.5 is a City loan for which they are reimbursed. It is a loan and the City gets it back from the tax increment. That reduces the amount down to $4.5 minus $1 million from the land sales which reduces the risk to $3.5 million as a write off. Mr. Burns stated he thought that $4.2 million was estimated for the cost of this project. If $1.6 million is received from TIF and $1 million for the land, there is a net cost of $1.6 million. Add to that to the $2.5 million already in the project. Mr. Casserly stated he would like to describe what is going on in the legislature as it pertains to what the HRA is doing. The house has introduced legislation, HF #147. The impact of this legislation is to allow the use of tax increment to repay debt on third party contracts. If the legislation were to pass, it would have a serious impact on this Authority. He mentions this because there are a number of people around the state wondering if they should proceed with projects. The legislation contains retroactive language to February 1 of this year. It is very unusual to do this. The immediate effect was to stop bonding. This HRA is not involved in issuing debt. The real impact could put us in a position where, if this were to pass, the HRA would not have the increment to repay the City. Since this legislation has been introduced, people are taking it seriously. He is suggesting that people conduct business as they normally would. Mr. Commers asked in what way would the HRA finance. Mr. Casserly that the HRA would fund out of the fund balances on hand. Mr. Commers asked if the legislation would impact the HRA's ability to do that. They are not going to do any bonding. Everything is internal. It seems the solution is to get the City to put in their role to the HRA that, if it becomes impossible for the HRA to repay the loan, the City will not be repaid. Mr. Casserly stated this would be true anyway because the repayment is from eligible revenues. If you cannot use revenues, you cannot repay. He only raised this because the legislation puts the author and others who are trying to reform the way you use the tax increment in a better bargaining position. His concern is that this could start pitting cities against each other. Mr. Commers stated it sounds like there will be some changes that this HRA might view as detrimental to the law. HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 15 Mr. Casserly stated there are some changes. In August, 1989, they changed the definition of redevelopment. A number of suburbs created large tax increment districts. Most of it was raw land. They have now started to development this land and are generating large amounts of increment. Because of the way the law was written, the increment can only be spent on qualified expenses in the project area. These suburbs are using the increments doing special assessment projects, etc., normally paid for out of the general fund. Those of us working on redevelopment do not see the cash flow. The only source of revenue for doing projects is the reserves established over the last 10 years. Most new projects will have shortfalls. These are issues we are dealing with. They think they can solve the issue by limiting the use of the tax increment funds just for projects indicated. They hope to reach a conclusion so they do not have the same discussion each year. Mr. Commers asked if Mr. Casserly has any sense of what the HRA has put into public improvements that would have otherwise come out of the general fund. Mr. Casserly stated he thought there had been very little. Mr. Commers asked, if they must redo the Lake Pointe intersection, is that something they are objecting to. Mr. Casserly stated that is an acceptable expense and is a part of the plan needed in order to make the plan workable. This is part of a redevelopment project. MOTION by Ms. Schnabel, seconded by Mr. McFarland to approve the Resolution of the Board of the Housing & Redevelopment Authority of Fridley, Minnesota, Authorizing the Acquisition of Certain Property by an Eminent Domain Proceeding, contingent upon City Council approval of expansion of the project area. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 8. APPROVE 1995 HRA BUDGET Tabled until the March meeting. INFORMATION ITEMS: 9. UPDATE ON NEIGHBORHOOD MEETING FOR SOUTHWEST QUADRANT Ms. Dacy stated she, Mr. Fernelius and Mr. Burns attended the meeting. Councilmember Billings facilitated the meeting. About 100 people attended of whom half were home owners and half were tenants in the apartment buildings. Mr. Schnitker talked to the tenants as a separate group about relocation. The article in the HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 16 Focus did a fairly good job of summarizing what happened at that meeting. She and Councilmember Billings made a presentation about the history of the Southwest Quadrant and the efforts being made to redevelopment the area. Overall, there were positive comments from people in the area. Concerns did come up regarding traffic issues. All in all, the meeting went very well and she believed the meeting with the tenants also went well. Some tenants were upset that they would have to move, but the comments were generally positive. The public hearing was held on Monday night. Councilmember Billings made it clear that a majority of the City Council supported the creation of a tax increment district and supported the acquisition of the apartments. 10. UPDATE ON LAKE POINTE MEETINGS Ms. Dacy stated staff had been requested to recommend possible sites for a fast food restaurant and a bank. Staff provided information about available sites in the City. If the HRA has no objections, staff will recommend several sites in the City. Ms. Dacy stated there are some options with the Rapid Oil site. Rapid Oil could stay and there may be some opportunity to build around it or the HRA could consider acquisition of the Rapid Oil building. Another site is the former "Gateway" site at the northeast corner of 57th Avenue and University Avenue. Mr. Commers asked if the Frank's Used Car site might be appropriate. Ms. Dacy stated staff are still in the process of negotiating acquisition. The zoning dictates the property be used for a single family detached home. To re- establish that use as a commercial site would cause a zoning concern. Ms. Schnabel asked if both parties are only interested in sites on University Avenue. Ms. Dacy stated Burger King is only interested in University Avenue sites. Northeast State Bank may be more open to other sites. They definitely want to be on the east side of the road. 11. UPDATE ON GRIFFIN REAL ESTATE PROPOSAL Mr. Burns distributed a copy of his memo dated February 9, 1995, regarding a meeting with Griffin Realty. He stated he had met with Mr. Denny from Griffin Realty and Mr. Hoeg representing ULP, Inc. Mr. Denny and Mr. Hoeg have been meeting with a user. This client was privately owned for 22 years and is now publicly owned. They have net sales of $69 million and have experienced a growth rate of 22% in the last year. Their customers include Carrier Air Conditioning, Caterpillar, Frigidaire, Polaris and Whirlpool. They HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 17 have 341 full -time and part -time employees nationwide, the majority employed in the Twin Cities. They like our location and most of their employees are already in the neighborhood. The company has a very clean balance sheet with no long -term debt. They are one of four major players in their particular market area, which is a $5 billion per year business. Mr. Burns stated Griffin Realty wants to build a 60,000 square foot building with 40,000 square feet for this client and 20,000 square feet for spec space. The client is willing to commit to a 10 -year lease. The company has outgrown their lease commitment. They would need 5 acres of land and visualize their development occurring on the west portion of the site. They indicate they are paying $90 to $100 in project costs. Mr. Burns stated they would like to build a 1- story building. There is some willingness to consider a 2 -story building but they make the point that this would cost $12 per square foot more to build. This would be a Class A building. Mr. Burns indicated the Council and HRA preferred 100,000 square feet and a 3 -story building. They thought the goal of a highrise in this location was not realistic in today's market. Mr. Burns asked them about financing. They indicated they use their own resources. When asked when the client would need the building, Mr. Denny and Mr. Hoeg stated their client has a short term lease for 18 months. They envisioned starting construction in June or July of this year. They have looked at other cities but have a preference for this site. The total project costs would be approximately $5.5 to $6 million. Mr. Burns stated he ended the meeting indicating the differences between what the City and HRA prefers and what they are proposing, and hopes to close the gap. Mr. Burns stated, after the meeting, he spoke with Merrill Busch and William Tobin and provided a summary of their comments. Mr. Busch stated these guys can deliver. What they are proposing reflects the realities of the marketplace. Some of the people he had talked to in depth had come to the same conclusions. They want lower density, and Mr. Busch thinks that is a realistic assessment. There are a number of prospects for headquarter buildings but in most cases these will be 1 or 2 -story buildings barring some exceptions. The broad general marketplace does not support the high density that we had envisioned. There is not much support for spec space. The higher they go the lower the quality of the building because they must keep their lease costs within market reach of their clients. He suggested we tour some of the buildings that they are showing as examples. He also pointed out that MAPC, another developer, is still strongly interested and are expected to HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 18 set up a meeting in the near future. In closing, Mr. Busch stated that Mr. Denny is real and the project is sound. Mr. Burns stated Mr. Tobin was not at the meeting. Mr. Burns forwarded to him a write up of the meeting with some other information. Mr. Tobin stated this is clearly something he would pursue. He would push for a 3 -story building. He would insist they stop playing games with the name of the client. That is something the City should know soon. Once there is some initial office development, it will be easier to get other offers. We may expect to get higher density office space once an initial project is underway. He disagrees with Mr. Bush and Mr. Denny in that additional height does not necessarily add to the cost. There are cost trade offs. There are less exterior walls, less roof, and less land. We may want to take the additional cost of a 3 -story building into consideration in incentives. Mr. Tobin is a well respected real estate consultant. Mr. Burns spoke with Mr. Casserly who said we ought to, if we are going to make progress, depict something on the site. He had staff come up with a reasonable design for a 60,000 square foot building on this site. The developer stated they wanted a 60,000 square foot building and would be willing to put in the first floor of a two -level parking ramp. Assuming a second 60,000 square foot building, Mr. Hickok came up with a proposed design to provide an idea how such a project could be situated on a site using 5.25 acres. The total acres in this portion of the Lake Pointe site is approximately 24 or 566,000 square feet. This proposal does diminish the goal somewhat. This would assume all 2 -story buildings throughout the site as well as a two -level parking ramp. There is another 8 acres to the east that could be preserved for hotel /conference, bank, and restaurant. Mr. Burns recommends they continue to work with Griffin to close the gap and strive for a 3 -story building. He is asking the HRA to concur. Ms. Schnabel stated this is a distribution company. Headquarters would be primarily office. What is the secondary use? Mr. Burns stated they needed to identify that use. Mr. Commers stated this sounds very much like a warehouse operation. Mr. Casserly stated they need to know more about the use. There are many combinations which would be acceptable. They are going through this preliminary scenario to find out the worst case scenario. If the entire area were designed with good quality 2- story buildings with bilevel ramps, what would be the maximum density? It may make sense to do just the first part to get HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 19 something going. There may be a 3 -story building constructed in the future. The problem may have been that options were eliminated by not considering proposals. If this project can be kept to the west and we can figure out how to handle the parking, it may be an enhancing opportunity. Ms. Schnabel stated she thought the proposal was worth pursuing. She is concerned that there is a 1 -story building and a bilevel ramp. The visual effect would be all ramp. Mr. Burns stated he would continue to push for a 2 -story building. If the HRA is interested, he can arrange some tours. Mr. Commers stated there is no harm is talking with them further. 60,000 square feet on 5 acres is too much to give up. Mr. Casserly stated this is still very preliminary. Mr. Commers stated the proposal does not meet any of the criteria established. We need to get together to make sure we want to do this. If we cannot get the criteria discussed in planning, then this needs to be changed. This is a major change. Mr. Burns stated he felt the people consulted were good people and they have a good .feel for the real estate market. What we were saying is does not ring true for today. Mr. Casserly stated that is the issue. Two to three years ago we were told we needed to think in terms of multi - purpose, high tech, single story buildings because that is what the market would bear at that time. The market is now starting to improve. People are talking about building some offices. The only major deviation this represents from what we discussed is, if you start with a two -story building rather than 5 -story corporate headquarter in the center, it is not that we cannot achieve the same goals. We are just doing it the hard way because there is no easy way to do so. There are issues to work out with parking. This may fit within the general overall goals that we have, at least for starters. The general consensus was to start at the west end. As you get closer to the center, the visibility is greater and it may be that this is reserved for the highest quality building. There is a host of issues to sort out before being considered. Ms. Schnabel asked what staff was asking of the HRA. Mr. Burns stated he was asked for some sort of reading regarding the proposal as it exists. Is there enough interest to continue to pursue and refine? The suggestion for refinement is to push for a 3 -story building and, at a minimum, 2 -story building. If they insist on 1- story, perhaps we should not continue. HOUSING & REDEVELOPMENT AUTHORITY MTG FEBRUARY 9, 1995 PAGE 20 Ms. Schnabel stated she did not want to see warehousing. Mr. Commers asked how much they were willing to pay for the land. Mr. Casserly stated that is the crux of the problem. We are trying to sort out, depending on the type of commitment, what we can get. Mr. Commers stated, if they build a 3 -story building of good quality, we may want to give the land. Mr. Casserly stated the HRA could sell the land and provide the parking or give the land and have them provide the parking. We do not know until we have an interested party. Mr. Commers stated it would be interesting to know what they could do with the rest of the land. Mr. Burns stated, if you use the site as suggested, you can use the land as proposed and still have 440,000 square feet. Mr. Commers asked how much would be left considering the parking. Mr. Burns stated there would be approximately 19 acres remaining. The total square feet is 566,000.. This project would use approximately 120,000 square feet leaving approximately 440,000. Mr. Commers asked if there was a way to projecting the tax increment. Mr. Casserly stated they can figure a tax increment by square foot. A market value for tax purposes of $80 per square foot and a tax rate of 5% equals $4 per square foot in taxes. This is close to what we would expect for a good quality office building. Multiply that by the number of square feet to be developed on the site to get the approximate total. This does not consider commercial development. Mr. Commers asked if the City Council has looked at the proposal. Mr. Burns stated he planned to show the City Council at their meeting the following Monday. Mr. Burns stated he had another Lake Pointe issue. An issue coming up is the intersection. He was advised at a staff meeting that the state is planning to do improvements along Highway 65. This provides us an opportunity to do some safety and traffic related signalization improvements at Highway 65 and Lake Pointe. They are not consistent with the overall plan for the intersection. When doing the main intersection project, we took those out so we lose the $28,000 investment. The issue is, do we want to spend $28,000 now. The Public Works Department is saying it would be a good idea if you are not going to improve the intersection in the next year HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 21 or two. A Councilmember suggested another alternative which is to initiate the intersection improvement project this year. Mr. Burns asked Mr. Pribyl to check on this and look at what would happen to the investment program if the HRA tried to fund both the Southwest Quadrant and the intersection project at the same time. He felt we would have to take a loss on some investments. Mr. Casserly stated the debt for this would be tax exempt. Mr. Burns stated he would like to raise the issue at the City Council meeting. This is an opportunity to correct some problems in that area and the HRA must decide if they want to take advantage of the opportunity. The City has had an increasing number of complaints from citizens living on the east side of Highway 65, especially from the Harstad development. People are complaining about difficulty at the intersection of Hackman and Old Central and Highway 65. He thought there was more support on the City Council for doing something at that intersection. Mr. Commers asked what the total costs would be for those improvements. Ms. Dacy stated they had budgeted $1.9 million in the year 2,000. Mr. Commers stated this was a big number with no tax increment generated. Mr. Casserly stated they were hopeful that they would not have to do that improvement until there was development to offset the expense. Mr. Commers stated he did not like to sell the investments at a loss. Mr. McFarland stated that is talk but, if that is the value of the bonds today, then that is the value. You are taking a loss because you are not getting the rate. The value is not there. Mr. Casserly stated that is a particular area that you may wish to do some tax exempt financing. The cost of financing may be less than the investment return. Mr. Commers asked if, theoretically, they would be better off doing the project with the bonds. It may be better to get out and buy different bonds. Mr. McFarland thought this was worth consideration. You can see what your loss is and see how much you can yield on a replacement at today's rate. You may get a higher yield. HOUSING & REDEVELOPMENT AUTHORITY MTG FEBRUARY 9 1995 PAGE 22 Mr. Ellestad stated the investments are very liquid. It does not meet the objectives of the HRA itself. Mr. Burns stated staff used 5% in the budget for interest rates. Mr. Ellestad stated the interest is currently 5.7 %. Short term interest rates are high. Mr. Commers stated, if the cost if $1.9 million, he is inclined to think it will hurt the HRA in terms of what we have to give up. He requested staff do a financial analysis in terms of what restrictions this will put on other programs. Mr. Burns stated staff would prepare an analysis including the current value of the intersection project and do some cash flow analysis to help understand the impact the two projects will have on future flexibility. We have shown the project out to the year 2,000. The big question is what happens to the cash flow if this is moved up to 1995. Mr. Commers stated it seems as if it will cost half again as much. Mr. Casserly asked if the HRA would like to do the improvements before necessary and how do you gauge when they are necessary. Mr. Burns stated the definition of necessary becomes more clouded by the demands from those on the other side of Highway 65. Ms. Schnabel asked if the entire intersection was to be redesigned. Ms. Dacy stated each leg of the intersection on the west side needs to be realigned. The next leg is the additional left turn lanes to go into the site. On the east leg, that is realigned as well. They have to move the access to the frontage road to the east to get traffic into the intersection in a better manner. This is quite an extensive project. Mr. Commers stated he did not think the east side was necessary for the Lake Pointe project itself. Ms. Dacy stated that was probably true for the Lake Pointe project itself. It is the left turn lane into the project on the west side that is directly related to the site. The east leg is a very poor alignment. During the townhome proposal, residents said they could not get through there. Mr. McFarland stated that was not an HRA problem. Mr. Burns stated it could be interpreted as an HRA problem. The Harstad project on the other side of the road is generating tax increment financing and is also generating some of the problem for HOUSING & REDEVELOPMENT AUTHORITY MTG, FEBRUARY 9, 1995 PAGE 23 that intersection. Some of that TIF money could be used for that project. Mr. Commers asked how much tax increment is being generated. Mr. Casserly estimated with 46 townhomes valued at $85,000 the tax increment would be approximately $40,000 per year. Mr. Commers requested more information in order to look at alternatives for that project. Mr. Commers stated, as far as Griffin is concerned, there is no down side to talking with them. He asked Mr. Burns to see what he could do. It may be that the HRA will not want to continue when they know what the client does. /W*0181900I210M MOTION by Ms. Schnabel, seconded by Mr. McFarland, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE FEBRUARY 9, 1995, HOUSING AND REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 9:50 P.M. Respectfully submitted, i o kk) Lavonn Cooper Recording Secretary i Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: March 3, 1995 TO: William W. Burns, Executive Director of HRA /001 FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Consider 1995 HOME Program Application As in previous years, the HRA has had the opportunity to apply for federal funds made available through Anoka County. These funds are provided by the Department of Housing and Urban Development under the Home Investments Partnerships Act (HOME Program). The program must benefit low and moderate income persons and the grantee (i.e. HRA) must provide matching funds equal to 25% of the budget. In 1993 and 1994, the City and HRA received a total of $140,000 in HOME funds which were used for housing rehabilitation. This year, the County has received an allocation of $457,300 which is open to all communities in the County on a competitive basis. Applications are due by April 13, 1995 and funding decisions will be made in May 1995. We should point out that matching funds have been included in the 1995 HRA budget. Staff recommends that the HRA authorize submission of an application for $75,000 in 1995 HOME funds and further that the HRA provide a match of up to $18,750 or 250 of the actual allocation, whichever is less. GF/ 1 r «n:. aT' COUNTY OF ANOKA Urban Anoka County Community Development Block Grant GOVERNMENT CENTER 2100 3rd Avenue • Anoka, Minnesota 55303 -2265 • (61 2) 323 -5709 February 21, 1995 Mr. Grant Fernelius, Housing Coordinator City of Fridley 6431 University Avenue N.E. Fridley, Minnesota 55432 Re: 1995 HOME Program Applications Dear Grant: Anoka County will receive $457,326 of HOME funds for Fiscal Year 1995. You are invited to submit an application for those funds to complete an eligible housing project. A copy of the regulations is attached showing details on eligible projects and other program requirements. Please keep the following in mind as you consider applying for these funds: Eligible Projects Acquisition, rehabilitation, and construction that provides permanent or transitional owner- occupied or rental housing that serves low income households. Limited tenant assistance is also available. Any single family rehabilitation should target neighborhoods. Any requests for general city -wide housing rehabilitation will have low priority. Income Limits All households served must be at or below 80 percent of the median income in the Minneapolis -St. Paul Area adjusted for family size ($40,200 for a family of four). In addition, some types of projects such as tenant based rental assistance have more requirements on income. Please check the attached regulations when planning your projects. Matching Requirements Any applications must identify the source of a required match of 25 percent of the amount of HOME funds provided for a project. The match funds must be committed to the HOME program for an indeterminate period of time, which eliminates equity or loans as sources of match. Match requirements are addressed in detail in the attached regulations. FAX: 323 -5682 Affirmative Action / Equal Opportunity Employer TDD/TTY: 323 -5289 Page 2. Please call me at 323 -5709 with any questions. All applications are due on April 13, 1995. A decision on funding recipients will be made in May. AAO:sw Enclosures l w. Sincerely, Alyce A. Osborn Community Development Manager I _ Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: March 3, 1995 TO: William W. Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Consider Purchase of Deteriorated Homes Over the course of the last several months, staff has become aware of several substandard homes which are good candidates for the scattered site acquisition program. Two of the homes are located in the Riverview Heights neighborhood and one is located in Hyde Park. A summary of each parcel is provided. 6000 2nd St. This is a single- family home located in the Hyde Park neighbor- hood and is currently rented. A rental inspection was conducted in January and several serious code violations were discovered including, structural deficiencies, open sewers, electrical hazards, and unsafe mechanical systems. In addition, the property is considered non - conforming due to its small lot size, inadequate setbacks and small dwelling size. The property was appraised by John Dahl, McKinzie Metro Appraisals for $42,400 and the owner agreed to sell for $40,000. We should also note, that ACCAP owns a four -plex immediately north of this site and could possibly use this site for additional off - street parking and /or outdoor playground space. 540 Hugo St. This is a single- family home located in the Riverview Heights neighborhood and is also rented. The home is adjacent to a lot the HRA currently owns at 550 Hugo St. Staff attempted to acquire this property last year, but was unsuccessful. Since then, the City has conducted a rental inspection and found serious code violations. The home was appraised by Richard Erickson, Appraisal Engineering Bureau for $37,700 and we have made an offer to the owner. To date, we have not received a response to the offer, however we 2 Purchase of Deteriorated Homes March 3, 1995 Page 2 540 Hugo St. (cont.) are requesting authorization to acquire the property within the negotiation guidelines established by the HRA not to exceed $42,000. If we are successful in negotiating a purchase, this lot could be combined with the lot to the west and sold as a buildable lot. 533 Janesville This property is a HUD foreclosure and has been vacant for some time. The home is located in the Riverview Heights neighborhood and has been the source of numerous complaints from neighbors. Based on an exterior inspection of the property it is apparent that the home suffers from deferred maintenance. The home was offered for public bidding last month and bids were due on February 28th. Staff submitted an offer on the home for $45,000 (asking price) and will have information available on the outcome of the bidding. Should we be successful in our bid, the site could be resold as a buildable lot. Staff recommends that the HRA approve the following: 1. Purchase of 6000 2nd St. for $40,00; 2. Purchase of 540 Hugo St. for a price not to exceed $42,000; 3. Purchase of 533 Janesville for a price not to exceed $45,000; and further authorize the Executive Director to execute all legal documents to complete the purchase of said properties. GF/ M -95 -144 2A C/T Y OF FR /DL EY RIVERVIEW TERRACE 16� 4 TY rOf FRI Y -- -- -CITY C00N RAPIDS - -- l 1 A �C 4 a a M ff`��� B'� ty 4 �_ m �e a 133aiS - — ' Lo CIO mX��r r�o "1(1 -n-- - - - -. _ B£1 "- . >,p "�2•a•2" O <"^t or "� G,. � SI ",r� O 7' ��J:. / Z °1 � y» ti �S rr n_ "•a • 1 �" O " t � i Z d ' I t f U 68 bt% 'X �O • IV « � � _ O_ a � , v f . O� ylrk PALM / °? °• ° r,• � � >° Fr +.9 Sri° �-r� o norl b y Y97 .,GZ° `T. I, A' "J „\ h ��' • a :, 1, °�` Z 4s� G Od C)2j0 °• N�n�i J! ° £ 9£ �n o.• ol °£-£ 9£ dl�c, I£ 6E' BZ Zr Z 6 - � °tl £ 6 go -•+ v; yi "° �:' ( z :e.« - ° - •;• wlt.,BZ �Z Boa v1e.,LZ,'�h os - "\ rZ 9r � "« r IZ " � 61 OS '0 11 v P�^ ° zas �dr�.• a - - - J:a� LZ £r• m � b " S�1_�,� ZZZ gb i"' �1 s ;f 61 � " « �1 °_, 9�. £S m� � °,��,6 U "�o � � i O - 9.`�' � o � 'bl ;lybl t9b +m N Janesville St. 533 Bbl . � � d ;116! 0� •� � N �l� £SIB " � "�" bl1 gS C- 11 6S l a ° „626Ss \� oc � `<"'” s J. c'• °` • �y,N��� �� or 66 1 ^ "•. (n " + B!! £ L �«, 01 w\ ° '6 0< > uiv 6 °, oc c0C a i vS- o• °• �ys "aid ;L91 ey 540 Hugo St. 6y _s ac6 GS2 b mvm cz yOf� !�Y�� .a , /y S °I Vl crN' or oG Of ci¢ �.o\ � bl yy 1 = 1 By ` «II i O, 6 O�I,o i 9 s U af" ro o• °2 �� o.,cf rrte�-,� - . Cv= ° V _ 7 � L �tl ��` 1�1 — °� - -� 2 ` ° co v °<of c,o ��_ 2i °\ _ 3�s ij.i.s'w 1- 'ii ° sz+a> az �• z2.• °•z.• , ezr• et.• -it1, Z 8y i,t b „ + Ua "v- o oa oG ^„ � O,`d a._ -ao].z "" ". ^1 zo. > r° cv4r'aosi a m.as •a.J• � la» : sz.0 11 6 o °, dz °° _ _ c � _ � �L r'ci\ °,o ° Aaa ° is \a \: cs. \M : - iseJ.o•: v «o•JZ'oTCe ± _ w _ 4 l o,\ °l1 -0G o= �` �° �'GJ,Cj �I'c'�aG \� v - - ~V o' >o o_ c �. - r \_•vao. a(yay�o �y���Vi�4•.o_e pl •, �. zN:. ;, "", my - a° "�,,.1 _ _ U- a: _µo - »-4 ^_'•"'- b0' »ab " Yr��i'O` io< c2• � i.�d = r.•\e`.• \« �'<�� «�_I ��-- c•z •s z.o cc �]@ �V•o a °hJt.aa ^•'>o..s rrz.t. ` NORW Vrl ._Lr ` � Of G 66 - ° �31.a aC_t\ - - w.j4. - ° „ -C•"1 � o° • � +1r ♦ � L G2 i¢ � _'�_�� - 6• + �« a V y � « \1 i ` iJO.x� ob� > «f1]i'° .,� O< C 4 \ « � __ - F7 � 1i••\« ° _N .a1`�, � « s� r c ��� C ♦G � �_Y�\, 50, � 3 ie � it t O , � � r r -•O ° CGI °« C� 004 C °C2 ,i\ ] :�>a.>a• af.ZeJ � Cy = iy +G,� w It{`] �.\s •G.z' r_ - _ _ - = N:� iu.(� N•`♦ V _ `i`" �c s rW= a" ti_ « (mil t`r _i(N *_:�rU P r •t'�tD :ac <c y � • •L \� •�I� _rC,`O' `o� > °4(4 �_ a =;« w V "• u = A�ee�CG ii °a• tr �a.� • Q o w0 Dw °i 4 _ _ _ ( O.: V +'r • ° U 'z >O = ^- rs t >a a c>JZ ►4\ i !•�U_ x >r11. ot,E «°••'�"•. 0 z s T iaz.r �J •7�,.•, ti « t c �9♦ `s ro aj. w^ acoa ioa.zs ,aa s z t' f ,� iz T. za'.° r ya °es.J� _ ♦ o �r'`o• 'pe•rO �i, ti. : • N_r iA •`.� >•1r rr.t�• °� wt uc g �.' ° •'n, ° q ., ti V v & 6 t J uz.0 _ >tas �o t ` o C O O Tl is> o�'\_`_•`ltip m c V..� : U _•"$lam `9 a ��a -a+ �' J io. �« _ O /r? i. 8 z ° ' o ° o ♦r t o Z za.a• 2 ° X75 °d� n3as1 n16 o z . \ w i cr9 - __v . z•zr, c p��a 4 "ioo �lz = �� c° _° °• "ra. r' +i ,] -< ' >r r..zaz <. >a•` fV _ , ° mac- o ay1 tl 91.) "� (-- • .;z ao_ _ «a•c to ♦ �l p° 2173 .a.. 134 zT m z «c`oT'o••J �z +t .z.,J I r• t °+ .a .; '�/ N$ o+ _ e•.ae 1oa.r> v // Z J 72 °L� °o _ _ _C j °. c -Q o Q� "r+ i rrr ° ♦•� 3a'�o MtrtO�r rt t g °�' '•sa'a - �� •�.� ° «t•n'si-r 0/2 i-0 ioi.s � ,- `. «J•JS'i•+r' «I - x.]p %' ws•zr'r ° x 0 O _ ,. - /• 1s T.to a°•« �. '.1 <•., .� f'° \- ♦ ° /3 069 W. - - 2.: o w • °' w a k 8 /4 - s _ « Rl ° g Z - \ _ : O . ° O o :z.z•.. ° U ° . r - , < . 'o ' >? ` 0 •' - - ^' .. /5 � .. -� O w+O w` o `' °♦1 - ° ° � � ii W r ♦ N` ±•oc` or• ;90 g•e�•- V : y 067\ 8 z3 "-O z >�•' Yz' _ `• <'ca +w •>z c♦ > +r -' Y r: •, .• ° ° 8 /6 -' �. « r, ♦c °' .l �r °rt _ . x. - N ♦� • •tr °66N- °c 4 Z 1a.• \ -4 a•.z: = �„ _ w]•o•'rs- D' V(iOJ� - - - - rG ° Cy ° �... Of . -, ''iS • o 'Y-_j�\i�'t «.m..1 .r4 Iw' 2t �: /V - ��� ��:. a1.o O Z °' A rFs�G\oy� G r` ♦+ ♦ •(q i'�DI .rsi sT« rya. o ^ � � ^ f �, _ o ' ar HO.G = ^. c GAD f • P \is o O = 4� a° � tp • rO ♦a•,O ,2t c Asa z•[ 02 _g / = loon ia>.• .w - .� ° •V «' � • U � r src \\ � y a >G• 'r ' °o � a rO.� rl � H � . « _ u:60 0 •• ^«OwT« � (� � �'C7 ' 4 G< .�� O • °P �:� .y °_ °2' ^� v5 0 -. 1 rz.sa z\o.•o «.__ �rir. o y� r ` X24 -« � o, "' + 'Lr U 6,:� _ 1a Vic' ! i♦f+ - zo sa° •�•as : • 0 ' tl ! T aaa.ze «!•1 >'ra C -_ P'Ga\ '. ^ +o ac o• t•r ?� + ILA wo•u'e I f °>e• �.�> °r ?6 tl tl 7 GY iooT ^ N = im 4a ': .,� L 4 u.]t �zGU °j'at re• 'A e + arm �i ST. ° CfY' 'a 7(—" - - 1. TI0 053: , a (� °O C7 :ci \` ` V ° y G. \ •a G•�: 'o St Rl \: ° �� r1 °K �, \�^ •••c _ K ° V •'r +'o °d" -��° `� G•a.G.• t _ .ao '0 'r1a : = • o�` �i ¢ ° � A _ _ -:'u O 1a -w U -::O - •° -.!. a i W. �a o`er • `- s� ' + 233 «� 1 «1 0 .ao•A - >zi L ° C w +.. °<, � : �- " g A •• • , ati Qz -' ?� • "O• !,s . •_� yS °Via` tiY34i_� « 1•a�•'al�lr: .as� ]] _ �1 n - y .i^ G2 ,\ c`. , .� - -" W •t ^ 'z�X °3 - ° 1 «� m.e (}� - E « O - Ifs ' 'A ''t � i \• �s +a• ••.ra GO• A ..• sa' c T. 3 i °° -•a: 036 0 E114 n R ,O ,„�•- -. „_ - ". ° +m a° . :\ acs r. - �«n (22) (20 I r- 6000 2nd St. uj 2i 59TH Li lf®r- F- AVENUE ,fl r---"7frr1+ /Z 81 56TH AVENUE N.E. ---0 Z.- ff7 AVE TH F .777 r � Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: March 3, 1995 TO: William W. Burns, Executive Director of HRA 440 FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Consider Agreement with Northeast State Bank Jim Casserly has prepared an agreement with Northeast State Bank for administration of the MHFA Home Improvement Loan Program. This agreement incorporates some new changes we've made to the program. At a later date we will present a revised agreement with Fridley State Bank. Under our current program, a deferred loan is provided to each eligible borrower who can qualify for a loan. The HRA loan is used to "buy down" or reduce the principal amount of the regular MHFA loan. The amount of the deferred loan is based on a percentage of the MHFA loam up to a maximum of $2,250. The rationale to this approach is to provide an incentive for the borrower rather than meet an actual financing gap. Based on our past experience it appears that this approach is not working. Under the revised program, the HRA will provide deferred loans, however the loans will only be made to fill gaps in loan requests in the following situations: 1. Insufficient income to finance the entire loan amount, or 2. Insufficient equity to secure the entire loan amount, or 3. The loan request exceeds the MHFA limit of $15,000. The maximum deferred loan will be $3,750. It is our hope that these changes will make the program more useful for applicants who need the financing, but can't qualify for the entire loan. Repayment of the HRA loan would be deferred until the home is sold and interest would be charged at the same rate as the MHFA loan. Casserly has also prepared a resolution which authorizes execution of the agreement with Northeast State Bank. Staff recommends that the HRA approve the attached resolution and authorize the Chairperson and Executive Director to execute the Memorandum of Understanding. GF/ M -95 -145 3 Casserly Mol;,ahn & Associates, Inc. 215 Soutli 11 th Street, Suite 300 • Minneapolis • Minnesota 55403 Office (612) 342 -2277 • Fax (612) 334 -3382 M E M O R A N D U M To_ City of Fridley Attn: Grant Fernelius, Housing Coordinator FROM: James R. Casserly RE: Memorandum for Northeast State Bank DATE: February 22, 1995 I have reviewed our previous agreements, our notes over the last number of months, MHFA regulations and guidelines, and your correspondence and have prepared the enclosed Memorandum of Understanding. Please note that the only changes are to Paragraphs 4 and 5 and the preparation of a new Exhibit E. I hope this captures the flavor of what the Authority is trying to accomplish. We are going to intervene only when there is a gap. And we are going to charge interest which will only be paid when the Note matures. Mark up these pages or give me a call. When I have your approval, we will forward them on to the Northeast State Bank and we will send a copy to Ruth Fitzsimmons at the Minnesota Housing Finance Agency. Please let me know who I should forward these documents to at the Northeast State Bank. Also, I believe I am using the correct legal name, but I would appreciate your verifying the bank's name. In our draft of the documents to the bank we will include the appropriate exhibits with any required modifications. I want to thank you again for being so patient in getting this agreement worked out. I assume this Agreement can be approved at our March HRA meeting and we will prepare the appropriate Resolution. I will be contacting you shortly regarding some additional information we need for the Fridley Housing Replacement Program legislation we are working on at the Capitol. We will talk to you soon_ JRC /kh Encl cc: Barbara Dacy, w/o encl William Burns, w/o encl 3A RESOLUTION NO. A RESOLUTION AUTHORIZING THE EXECUTION OF A MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY AND THE NORTHEAST STATE BANK OF MINNEAPOLIS. 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. The Authority has established a Home Improvement Loan Program (the "Program ") for the residents of the City of Fridley (the "City "). 1.02. It has been proposed that the Authority enter into the necessary agreements to expand the Program by executing a Memorandum of Understanding (the "Memorandum ") with the Northeast State Bank of Minneapolis (the "Bank ") as a participating lender. Section 2. Findings. 2.01. The Authority hereby finds that the Memorandum promotes the purposes of the of the Program and Authority as those purposes are defined in Minnesota Statutes, Section 469.001, et sect. (the "Act[(). Section 3. Authorization for Execution of Memorandum. 5.01. The Authority hereby approves the Memorandum substantially in the form presented to the Authority and authorizes its Chairman and Executive Director to execute the Memorandum on behalf of the Authority with such additions and modifications as those officers may deem desirable or necessary as evidenced by the execution thereof. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS DAY OF , 1995. LAWRENCE R. COMMERS - CHAIRPERSON ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR M CITY OF FRIDLEY, MINNESOTA HOME IMPROVEMENT LOAN PROGRAM MEMORANDUM OF UNDERSTANDING THIS AGREEMENT, dated this day of , 19 , by and between the Housing and Redevelopment Authority in and for the City of Fridley (the "Authority ") , a public body corporate and politic existing under the laws of the State of Minnesota and Northeast State Bank of Minneapolis, a corporation existing under the laws of the State of Minnesota (the "Bank "). WITNESSETH: WHEREAS, the Minnesota Housing Finance Agency (the "MHFA") has established a Home Improvement Loan Program (the "Program ") to assist homeowners in financing their home improvements; and WHEREAS, the Authority has established the City of Fridley Home Improvement Loan Program (the "Supplemental Program ") to supplement the Program and provide additional funds for the Improvements; and WHEREAS, the Bank will process the loans for the Supplemental Program; and WHEREAS, the Bank will act as a Seller and will provide a Loan Processor, as those terms are defined in the MHFA Home Improvement Loan Procedural Manual (the "Procedural Manual ") , for the Program. 2/22/95 NOW, THEREFORE, the parties hereby agree as follows: 1. The Authority will perform a prescreening process to preliminarily determine eligibility of borrowers for both the Program and the Supplemental Program. 2. The Authority will provide the preliminary applications of the borrowers to the Bank and shall initiate a preliminary inspection of the property to be improved. 3. The Bank will assist each borrower with that borrower's application and will follow the procedures as required by the Procedural Manual. The Authority agrees to provide loans from its Supplemental Program only to those borrowers that meet the requirements of the Program (the Program loans shall be referred to as "Primary Loans "; the Supplemental Program loans shall be referred to as "Deferred Loans ") . The Deferred Loan and the Primary Loan may only be used for those eligible improvements (the "Eligible Improvements ") as defined in Section 4.3 of the Procedural Manual. 4. The amount of the Deferred Loan shall be the lesser of one of the Eligible Gaps, as described below, or $3,750 and shall not exceed the amount of the Primary Loan. The 3C 2/22/95 purpose of the Deferred Loan is to assist a borrower in securing a Primary Loan when the borrower does not qualify for a Primary Loan due to an excessive debt to income ratio (the "Income Gap ") , an excessive loan to value ratio (the "Value Gap ") or has costs for Eligible Improvements that exceed the eligible Primary Loan amount (the "Loan Gap "; all three gaps are collectively referred to as the "Eligible Gaps "). The Eligible Gaps are further described below: A. Income Gap: The Income Gap occurs when a borrower's monthly debt to average monthly gross income (as these terms are defined in Section 4.7 B of the Procedural Manual) exceeds 40a. The Authority may make a Deferred Loan to reduce the ratio to the required 400. An example showing the calculation used in determining the principal for this Deferred Loan is shown on Schedule E attached. B. Value Gap: A Primary Loan cannot exceed an amount, which when combined with all other existing indebtedness secured by the property, would exceed the property's market value and anticipated improvements. The Authority may make a Deferred Loan which would exceed the property's market value and anticipated improvements. An example showing the calculation used in determining the principal for this Deferred Loan is shown on Schedule E attached. C. Loan Gap: A Primary Loan, exclusive of finance charges, cannot exceed the amount established by the MHFA, which is currently $15,000, and the principal amount of the Primary Loan must be reduced as required by Section 4.8 E of the Procedural Manual. Such reductions are required, for example, if the borrower has previously obtained a MHFA loan for the same property. The Authority may make a Deferred Loan which would exceed the MHFA maximum loan amount and may make a Deferred Loan for the amount of any reductions required by Section 4.8 E of the Procedural Manual. Examples showing the calculation used in determining the principal for this Deferred Loan is shown on Schedule E attached. S. The interest rate will be the same rate as that charged for the Primary Loan and will be deferred until the maturity date of the Deferred Loan as defined in the Deferred Loan Note attached as Exhibit B. 6. Prior to the closing of the Primary Loan and Deferred Loan, the Bank shall submit to the Authority a request for Deferred Loan commitment ( "Request for Commitment ") attached as Exhibit A. The Authority shall have 5 3D business days from the receipt of the Request for Commitment to notify the Bank of its approval. Within 30 days after the Bank has received a notice of the approval of the Request for Commitment, the Bank shall close both the Primary Loan and the Deferred Loan. 7. At the closing of the Deferred Loan and Primary Loan the Bank shall do the following: A. Secure the execution of the Deferred Loan Note (attached as Exhibit B) by the borrowers following the procedures as provided in the Procedural Manual for the execution of the Primary Note. B. Secure the execution of the Deferred Loan Mortgage (attached as Exhibit C) securing the signatures as required by the Procedural Manual for the execution of the Mortgage. C. Provide the borrower with the Completion Certificate, attached as Exhibit D, with the accompanying instructions. 8. Subsequent to the closing the Bank shall do the following: A. Immediately record the Deferred Loan Mortgage with the Anoka County Recorder. The Authority shall reimburse the Bank for any expenses incurred in connection with the recording of the Deferred Loan Mortgage. B. Deliver to the Authority the original Deferred Loan Note along with the original or a certified copy of the recorded Deferred Loan Mortgage. 9. This Agreement may be amended only with the written approval of both parties. 10. This Agreement shall terminate 30 days after either party provides a written notice to the other party. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year noted above by their officers duly appointed and authorized. 2/22/95 3E THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By Its By Its NORTHEAST STATE BANK OF MINNEAPOLIS Its 2/22/95 3F EXHIBIT A FRIDLEY RENTAL REHABILITATION LOAN PROGRAM REQUEST FOR DEFERRED LOAN COMMITMENT Date: To: Fridley HRA From: Northeast State Bank 6431 University Avenue NE of Minneapolis Fridley, MN 55432 200 Coon Rapids Blvd. Attn: Housing Coordinator Coon Rapids, MN 55433 BORROWER INFORMATION Name /s: Property Address: Please attach copies of the following documents to this form: 1. Credit Bureau Report 2. MHFA Prior Approval Submission Letter, If submitted LOAN INFORMATION 1. Total Cost of Improvements: $ 2. MHFA Rental Rehabilitation Loan Program Amount: $ 3. Requested Deferred Loan Amount from Authority: $ 4. Other Funding Sources, if any: $ Proposed Closing Date: NORTHEAST STATE BANK OF MINNEAPOLIS Signature Title APPROVAL BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY (THE "AUTHORITY ") The Authority hereby approves this Request for a Deferred Loan Commitment in the amount of $ to This Commitment will expire in 30 days, unless the Authority authorizes a written extension. Approval is subject to the terms and conditions of the Memorandum of Understanding between the Authority and the Northeast State Bank of Minneapolis. Escrow Agreement required: Yes No �: Signature Title Date 3/2/95 3G EXHIBIT B DEFERRED LOAN NOTE 19 Minnesota Property Address City State Zip Code 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $ (this amount will be called "principal ") , plus interest, to the order of the Lender. The Lender is the Housing and Redevelopment Authority in and for the City of Fridley. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note will be called the "Note Holder ". 2. INTEREST I will pay interest at a yearly rate of % simple interest. Interest will be charged on that part of principal which has not been paid. Interest will be charged beginning on the date of this Note and continuing until the full amount of principal has been paid. 3. PAYMENTS I will pay principal and interest by making a payment of U.S. $ on the Maturity Date as defined below. If, on the Maturity Date, I still owe amounts under this Note, I will pay all those amounts, in full on that date. I will make my payment at 6431 University Avenue NE, Fridley, Minnesota, 55432, or at a different place if required by the Note Holder. 4. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charge for Overdue Payments If the Note Holder has not received the full amount of any of my payments by the end of 30 calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will 50 of my overdue payment, but not less than U.S. $25.00. I will pay this late charge only once on any late payment. (B) Notice From Note Holder If I do not pay the full amount of the required payment on time, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date I will be in default. That date must be at least 30 days after the date on which the notice is mailed to me. 3/2/95 3H (C) Default If I do not pay the overdue amount by the date stated in the notice described in (B) above, I will be in default. If I am in default, the Note Holder may require me to pay immediately the full amount of principal which has not been paid and all the interest that I owe on that amount. Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (D) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back for all of its costs and expenses to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. S. THIS NOTE SECURED BY A MORTGAGE In addition to the protections given to the Note Holder under this Note, a Mortgage, dated , 19 , protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note. That Mortgage describes how and under what conditions I may be required to make immediate payment in full of all amounts that I owe under this Note. 6. BORROWER'S PAYMENTS BEFORE THEY ARE DUE I have the right to make payments of principal at any time before they are due. A payment of principal only is known as a "prepayment". When I make a prepayment, I will tell the Note Holder in a letter that I am doing so. A prepayment of all of the unpaid principal is known as a "full prepayment ". A prepayment of only part of the unpaid principal is known as a "partial prepayment ". I may make a full prepayment or a partial prepayment without paying any penalty. The Note Holder will use all of my prepayments to reduce the amount of principal that I owe under this Note. I may make a full or partial prepayment at any time. 7. BORROWER'S WAIVERS I waive my rights to require the Note Holder to do certain things. Those things are: (A) to demand payment of amounts due (known as "presentment "); (B) to give notice that amounts due have not been paid (known as "notice of dishonor ") ; (C) to obtain an official certification of nonpayment (known as a "protest ") . Anyone else who agrees to keep the promises made in this Note, or who agrees to make payments to the Note Holder if I fail to keep my promises under this Note, or who signs this Note to transfer it to someone else also waives these rights. These persons are known as "guarantors, sureties and endorsers ". 3/2/95 31 8. GIVING OF NOTICES Any notice that must be given to me under this Note will be given by delivering it or by mailing it by certified mail addressed to me at the Property Address above. A notice will be delivered or mailed to me at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by mailing it by certified mail to the Note Holder at the address stated in Section 3 above. A notice will be mailed to the Note Holder at a different address if I am given a notice of that different address. 9. RESPONSIBILITY OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each of us is fully and personally obligated to pay the full amount owed and to keep all of the promises made in this Note. Any guarantor, surety, or endorser of this Note (as described in Section 7 above) is also obligated to do these things. The Note Holder may enforce its rights under this Note against each of us individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. Any person who takes over my rights or obligations under this Note will have.all of my rights and must keep all of my promises made in this Note. Any person who takes over the rights or obligations of a guarantor, surety, or endorser of this Note (as described in Section 7 above). is also obligated to keep all of the promises made in this Note. 10. MATURITY DATE The Maturity Date is the date upon which one of the following events occurs: (A) all or part of the property described in the Mortgage referred to in paragraph 5 (the "Property ") is sold, transferred or otherwise conveyed; or (B) the borrower fails to comply with the terms of the Mortgage; or (C) the Note Holder learns that the borrower omitted or misrepresented a material fact in any documents executed in connection with this Note. Borrower Borrower Borrower (Sign Original Only) 3/2/95 3J EXHIBIT C DEFERRED LOAN MORTGAGE THIS MORTGAGE is made this 19 , between the Mortgagor, day of (herein "Borrower "), and the Mortgagee, the Housing and Redevelopment Authority in and for the City of Fridley, a public body corporate and politic existing under the laws of the State of Minnesota whose address is 6431 University Avenue NE, Fridley, Minnesota, 55432 (herein "Lender "). WHEREAS, borrower is indebted to Lender in the principal sum of U.S. $ which indebtedness is evidenced by Borrower's Note dated and extensions and renewals thereof (herein "Note "), providing for principal and interest, if not sooner paid, due and payable on the Maturity Date as defined in the Note; TO SECURE to Lender the repayment of the indebtedness evidenced by -the Note, with interest thereon; the payment of all other sums, with interest thereon, advanced in accordance herewith to protect the security of this Mortgage; and the performance of the covenants and agreements of Borrower herein contained. Borrower does hereby grant and convey to Lender, with power of sale, the following described property located in the County of Anoka, State of Minnesota: which has the address of , Fridley, (Street) Minnesota, (herein "Property Address "); 3/2/95 3K TOGETHER with all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances and rents, all of which shall be deemed to be and remain a part of the property covered by this Mortgage; and all of the foregoing, together with said property (or the leasehold estate if this Mortgage is on a leasehold) are hereinafter referred to as the "Property ") Borrower covenants that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey the Property, and that the Property is unencumbered, except for encumbrances of record. Borrower covenants that Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to encumbrances of record. PROVIDED, NEVERTHELESS, that if Borrower shall pay Lender the sums evidenced by the Note according to the terms of the Note, the final payment being due and payable on the Maturity Date, as defined in the Note, and shall repay to Lender, at the times and with interest as specified, all sums advanced in protecting the lien of this Mortgage, in payment of taxes on the Property and assessments payable therewith, insurance premiums covering buildings thereon, principal or interest on any prior liens, expenses and attorney's fees herein provided for and sum advanced for any other purpose authorized herein, and shall keep and perform all the covenants and agreements herein contained, then this Mortgage shall be null and void, and shall be released at Borrower's expense. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest indebtedness evidenced by the Note and late charges as provided in the Note. 2. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraph 1 hereof shall be applied by Lender to interest payable on the Note, and then to the principal of the Note. 3. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations under any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage, including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any. 4. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage ", and such other hazards as Lender may require and in such amounts 3/2/95 3L and for such Periods as Lender may require. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the. date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. 5. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit development, the by -laws and regulations of the condominium or planned unit development, and constituent documents. 6. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, then Lender, at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums, including reasonable attorneys' fees, and take such action as is necessary to protect Lender's interest. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law. Any amounts disbursed by Lender pursuant to this paragraph 6, with interest thereon, at the Note rate, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof. Nothing contained in this paragraph 6 shall require Lender to incur any expense or take any action hereunder. 7. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's interest in the Property. 8. Condemnation. The proceeds of any award or claim for damage, direct or consequential, in connection with any 3/2/95 3M condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage. 9. Borrower Not Released; Forbearance by Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Mortgage granted by Lender to any successor in interest of Borrower shall not operate to release, in any manner, the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Mortgage by reason of any demand made by the original Borrower and Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. 10. Successors and Assigns Bound; Joint and Several Liability; Co- signers. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and Borrower, subject to the provisions of paragraph 14 hereof. All covenants and agreements of Borrower shall be joint and several. Any Borrower who co -signs this Mortgage, but does not execute the Note, (a) is co- signing this Mortgage only to mortgage, grant and convey that Borrower's interest in the Property to Lender under the terms of this Mortgage, (b) is not personally liable on the Note or under this Mortgage, and (c) agrees that Lender and any other Borrower hereunder may agree to extend, modify, forbear, or make any other accommodations with regard to the terms of this Mortgage or the Note without that Borrower's consent and without releasing that Borrower or modifying this Mortgage as to that Borrower's interest in the Property. 11. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to Borrower provided for in this Mortgage shall be given by delivering it or by mailing such notice by certified mail addressed to Borrower at the Property Address or at such other address as Borrower may designate by notice to Lender as provided herein, and (b) any notice to Lender shall be given by certified mail to Lender's address stated herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this Mortgage shall be deemed to have been given to Borrower or Lender when given in the manner designated herein. 12. Governing Law; Severability. The state and local laws applicable to this Mortgage shall be the laws of the jurisdiction in which the Property is located. The foregoing sentence shall not limit the applicability of federal law to this Mortgage. In the event that any provision or clause of this Mortgage or the Note conflicts with applicable law, such conflict shall not affect other 3/2/95 3N provisions of this Mortgage or the Note which can be given effect without the conflicting provision, and to this end the provisions of this Mortgage and the Note are declared to be severable. As used herein, "costs ", "expenses" and "attorneys' fees" include all sums to the extent not prohibited by applicable law or limited herein. 13. Borrower's Copy. Borrower shall be furnished a conformed copy of the Note and of this Mortgage at the time of execution or after recordation hereof. 14. Acceleration. Unless Lender has provided its prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Mortgage upon the occurrence of one of the following events: (A) all or part of the Property is sold, transferred or otherwise conveyed; or (B) the Borrower fails to comply with the terms of this Mortgage; or (C) the Borrower has omitted or misrepresented a material fact in any documents executed in connection with this Mortgage. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Mortgage. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Mortgage without further notice or demand on Borrower. REQUEST FOR NOTICE OF DEFAULT ----------- - - - - -- -AND FORECLOSURE UNDER SUPERIOR----------- - - - - -- MORTGAGES OR DEEDS OF TRUST Borrower and Lender request the holder of any mortgage, deed of trust or other encumbrance with a lien which has priority over this Mortgage to give Notice to Lender, at Lender's address set forth on page one of this Mortgage, of any default under the superior encumbrance and of any sale or other foreclosure action. IN WITNESS WHEREOF, Borrower has executed this Mortgage. Borrower Borrower Borrower 3/2/95 30 STATE OF MINNESOTA, County ss: The foregoing instrument was acknowledged before me this by (Date My Commission Expires: (Person Acknowledging) Notary Public This instrument was prepared by (Name) of Minnesota. (Address) - - -- (Space Below This Line Reserved for Lender and Recorder)--- - RESOLUTION NO. WILLIAM W. BURNS - EXECUTIVE DIRECTOR 3/2/95 3P EXHIBIT D FRIDLEY HOME IMPROVEMENT LOAN PROGRAM COMPLETION CERTIFICATE Borrower /s Address Loan Number I (we) hereby certify that the loan proceeds from the Minnesota Housing Finance Agency (MHFA) Home Improvement Loan Program and the City of Fridley, Minnesota Home Improvement Loan Program will be used solely for the improvements described in the MHFA credit application and the housing rehabilitation inspection report and that the improvements being paid for by the loan proceeds have been completed. Borrower Date Borrower Date Borrower Date 3/2/95 30 kr&-A!i,bfi pw ELIGIBILITY GAPS The examples below are for purposes of illustrating the procedures for determining various Eligibility Gaps. The maximum amount of a Deferred Loan shall not exceed the sum of $3,750 or the amount of the Primary Loan. 0 C INCOME GAP: Borrower Average Monthly Gross Income $2,500 Monthly Debt (existing mortgage, car, credit card) $900 Debt: Income Ratio 360 MHFA maximum ratio 40i $10,000 Eligible Improvements Monthly amount available to finance Eligible Improvements (40, of $2,500 less $900) $100 Maximum Primary Loan $6,625 (assume 7o for 7 years) Gap to be financed by Deferred Loan ($10,000 less $6,625) $3,375 VALUE GAP: Current Market Value $75,000 Current Mortgage $72,500 Current Equity $2,500 Eligible Expenses $10,000 Market Value after improvements (1/2 of cost is includable) $80,000 Equity after improvements $7,500 Maximum Primary Loan $7,500 Gap to be financed by Deferred Loan ($10,000 less $7,500) $2,500 LOAN GAP: Example 1: Eligible Expenses $18,500 Maximum Primary Loan $15,000 Gap to be financed by Deferred Loan ($18,500 less $15,000) $3,500 Example 2: $15,000 Eligible Expenses Previous MHFA Loan $3,000 Maximum Primary Loan $12,00 Gap to be financed by Deferred Loan ($15,000 minus $13,000) $3,000 IR N tT O 4-) P4 o I~ 04 rn °a CO N 4-) N •e-1 O r-i •> 4J ty) O n' LO H O x M cL, O �:l +) �s O M N O 0 (O N c1 M co m p O -r1 0 tp O O f¢'t U (n a 0 Ul 'b 'O 'O O 10 N >~ a) 04 O I~ 4J ::5 �) (d O � � :j Q) O0 0 .r.{ w t3l is Ul '� � !� m O r-I 4-) x w w in Q4 x b 'cs O as O (d (n Ui M in o \o �E! r-i .r.' �4 > Pa LO z H (0 �4 O rn Q) m I • •r1 O O N Q) Ul ?I 04 H O yr U a) > r1 O rA r, -r♦ nl in .4 � 4-) O cd 14 w >~ s~ O x LO -) Q) O Q ul r-I ! 4 r-i ,x o • 3 r-i �4 1-) �4x Q) ho � 0 r M 0 ro Q) a w HI� 0 Ul 0 - O O V-r M cL, O �:l +) �s O M 'd a) 4J N O I~ b :� :j O 0 (O N c1 M co m p O -r1 0 tp O f¢'t U a � k a) O � � v 0 � a) Ul in Q4 H (d (d 'i$ 'cs O as c O Ui M in o \o �E! r-i .r.' Pa LO z 00 (d �j N rn rd I • •r1 O N a 00 Ea O 4-) N >v > "..r{ r1 O r, -r♦ nl in >~ O cd 14 w >~ s~ O O Q Q) r-I ! 4 r-i ,x r-i �4 1-) Q) O .Q ¢, M 0 ri a) N HI� r-i 4.1 rO ¢, O O a)a) a) v} 'L3 x fe. 104 p--r-i i (4-4 to O 9 M cL, O �:l +) 5 N r� -r� -rl m m N U N •n O a m U O z v 'd a) 4J N O I~ b :� :j O 0 (O N c1 M co m p O -r1 0 tp O f¢'t U a a w 5 N r� -r� -rl m m N U N •n O a m U O z to O s4 I~ O •rl w r-I cd •rl ?( >J Q) o 'd a) 4J N O I~ b :� :j O 0 (O N c1 M co ro N U � H a) .H �fj H 4-4 0 as O \O w Ui M O O LO H N rn 00 Ea O o O G4 04 Q) O .Q N O + fo O \O O O `� N r-i LO >~ N \ O 4-) 4J a �4 P 4-) N U ZS 4) 4J N .-1 O Q a) ?1 ?1 f� w � I > U OQ) w r-A H c 7 i-1 Ti 4J 0+ %'4 O 04 4-4-I M O a) rl td x Q W O m O -r1 O O U a P4 a 5 N r� -r� -rl m m N U N •n O a m U O z 5A f P ca W K 0 W 0 I N z3 O O o w ,.a O LO .� '0 ,0Ti o 7 4 >~ a) a) O ::% +-) �4 O rd 4J En00w Q) -'-1 x m >1 3 � 1~ O N Q) �4 04 a m Lf) w i 1 o o o � O1 rd (1) S24 i a� �4 a � ° o � LO — � +- 0 a U 05 LO N � 'O +-) �4 • U 0� p -P w � +- � a, Q) ss tT m O U (1) 1~ U) -r1 (1) cd tS 0 � U) 4 � '� iT O --q � � a o U) m r N :j 0 -0 o U oa a rn o -r•1 O w .r, O • �4�� .� co C) N 04 RS -P ix•1 Q S1fsi •�i� •rl ' N ° m 0v0 cn wts �4 � +��'�3 . >' • P 1-1 O A aa) k U � O ° � r -i o � �A �4 � � O � N� �� 0 �Lr) Ul N w r- 0) ON X: �4 �•, 0 00 a�wro O ,tr4 4-) OOO 41 O v} � N ro m - o N rt M —4-4 U �4 r1 . a) rd A 10 O H U co -,i U U O -P ";;v � 4-) -r-1 W N is O a' N yr -� ro N a �� � 1 •ri w ' o w w w i� O� >~ U H ° �� (0Ln o r A 10 (d a) U) U 4 U) o rn rUi Ca H M 10 10 4 � � m fo - 3� ,-1i -X1-+ O � O U Q TI U A i-) O td . 4 rd O fo 0 En 0 C p O 0 -� 11 'O U O fo 0 W � ° R a) a) U � ) � O H M iT � O �w9 a O 4 O —.4 Q) U i�,4, N (1) xA 75 > .. w m a) S' -x vmi w w a o a w z 5A f P ca W K 0 W 0 I TO: FRIDLEY H.R.A FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES FEB 1995 .......................... ................ ............ ............................... FEB 1995 ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES ADMINISTRATIVE OVERHEAD COMPUTER OVERHEAD (For Micro & Mini computers) TOTAL ADMINISTRATIVE BILLING: OPERATING EXPENSES: POSTAGE BY PHONE — POSTAGE POSTAGE BY PHONE — POSTAGE US WEST — TELEPHONE SERVICE UNIV OF MINN — REGISTRATION BENEFITS EXPENSES: CITY OF FRIDLEY — HEALTH INS, FEB CITY OF FRIDLEY — DENTAL INS, FEB CITY OF FRIDLEY — LIFE INS, FEB Account #'s for HRA's Use Account #'s for Citv'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 460 -0000- 430 -4337 TOTAL OPERATING EXPENSES 262-0000-219-1001 262-0000-219-1100 262-0000-219-1200 TOTAL BENEFITS EXPENSES TOTAL EXPENDITURES — FEB 1995 File: \123DATA \HRA \TIF\BILUNG.wk1 Details 15.87 236 -0000- 336 -3000 122.96 236 -0000- 336 -3000 13.24 236 -0000- 336 -3000 35.00 236 -0000- 336 -3000 187.07 192.00 236 -0000- 219 -1001 20.53 236 - 0000 -219 -1100 4.25 236 -0000- 219 -1200 216.78 .............................. $1 b,833'.3 In N P N O W 0 2' CD w < -m awe W � az z � ^- O t- d z w U U Q F- U w O d w N W LLI Z (7 U W W E W Q p Q , a u, Z:) U , d p : Y pW W Fa , Q S U N , m U W W , Q' J J 2 W N Q U F- Z W LU 8 T U :0 um i Q i H , Z , W , f , a, o, W N w , W i N p , 1- I W Q 2' p Z Vl Q P f- \ N Z O \ M M � N U f K t7 x W W E Y < Q W Q K J d w 0 0 p -- p W 2' 4 u O x Z) Q t- D d H N f x Q N > - N x N NC7 �dZ Z � O � W OWE --7W r-O Z U Q O Q J a' CD N J Y N LL 1- CL r F- �-- m m O W F W W LL 3 w 3 3 w 00 O MO 00 t� Ln M p.0 O O O N O O O \ O {{nn N O O tI- O N J 00 O 0�0�00 r pn ^ O M O P O N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 000 00 0 0 0 0 0 0 0 Z W Q 0 0 0 0 0 0 0 B a p O N O N O O N U p 1- ON t N It .tN NM�M• -�M 0 0 0 0 0 0 0 0 0 0 0 0 0 0 x x x O O O O O U U U O O O M O O rn C).-0 010 Q Q Q rn a0 00 10 v1 X00 �00010 �t Nf�NI�1�N to In Ln Ln In In 1n P P PPP 010, MCQ (D It un N 0 r N C, N \ \ \ \ \ \ \ NN N(V N NN 00 P o .- N t2 :t OO�CD.- -� 0 0 0 0 0 0 0 p W N N w U O a N O_ F- Q z a K U r- C7 LLI Q d 2 f Q Z O_ H a U W K p Q W > Vl P C3 \ - z M Q O � \ i 0 M O � O L L JU W a w m (n • x Y- >- P . U Z:) m \ . Z O . N Y \ U N W 2 U 0 O . a �• \ LL 1 Q 1 N v v z f O > w LLI p z (n ¢ P \ c7 M J Z \Vl N M M 0 f O ujc7 x p < w Q LL- J d U w O - - ce Q�w d d LL f z O 0 LLI 't It M -t N O O O O N O O V1 O V Vl O O Vl O O M O (D f- O ul O Vl M Vl N Vl 19 O O O O M O O 1� O f- N 11 O M O O N O 1n �t M O .. N N P � Vl O O O O O O O O O P O W O M V O e- O (V m P v Ln W •O !� M ti% N 0 0 0 10 O O O It •O O .- M W Vl O Vl M O P ti N P P •'- V\ M M M V Vl O M OJ W M m N Vl N M t� m •O P V• M N (n 1n M N � r � N N # W J U Q J Q W > N 0 A H U O Q� Q t1 O LL W > N N d Z Q w W N J U V J M w Q D: H N W W Z M 7 f r • F- Q> U�> r Jp Z• W¢ W d' W d Q J W w H¢ • w J Z J W W Xf X ¢Z Q(.7w N W NOG >N U Qr O¢ w iO ¢UQ2ON W O ON N / W 1 NN 2F OF �- W¢ H •-+ 17 U x J J J U 1-- N W 0 --. N ¢ Z2- LL QNr QOQ -+U W Z p UN JJJ JHN Nr W W pO Q O Q- < mN N.-- F-•- -. Z JJJ JN•- -• --.<' UQ KwH W �+pQ r W «+ N (L (1) Q •--• 1-- O O O O W¢ Q Q CD m d J N> F- ¢ w p w U H 0 U N Z , a Q > " , 0 v W •-. w W d O W O J U N 00 Q MQQN W Ow3OCa = = W om F-C7 dd. d d W Q Q�V\ C7 N� �¢pLLLLN NdQ d W d p'JQ �t Vl •O ti W P O M 'T In -O ti W P O— N M �t V\ •O 1,- N a 0 •- N M d M M M M M M s J v J S IT S It M V\ V\ V\ V\ to Vl Vl Vl s •O •O •O •O ,O J IT It 1-t 't-It It 't vvv.T V V Its J vvv 't NT zr'T v vvv (n (n Ln v (n (n (n V, Ln Ln Ln Vi Ln Ln (n U vi Ln (n V, Ln (n Ln in (n vi (n v\ Lrl N N N N N N N N N N N N N N N N N N N N N N N N N N N N N U U U Z Z Z .--. 1- 1-- W U p p O J U w N N O .Z-. 1-- �-- U 2- ¢ O U D Z J J H O W N N O_- > O U Z Z a- 2' N En N W U¢ Q O N �� Lij �Q.-. W twi¢OU¢.J U ZK (1) 'n a d z ¢ U •-- d N W N O cl� W Z W LL p 0 N W W 2'O�Zw ' O LL f¢ f O 7m, F- - ¢UN:z LLI lip W 2 C7¢ O W m W 2 ¢NN 2 2.2f m OJ (.MH O d U �(- N ow¢oo ¢z¢of 0-a- r-. w a l7 4J oa N W Z N 2O rz 1-zz J z ul z w¢ w p w� r r��� O> .-. p w O x w CL > U f LL' Y-2' YH dNN W W Q f Z W NU >N LLf W WOi O N ¢ ¢ ZJ d� W J 3 .Q'Nw 02- pJO U (--� 3 w¢¢ C-7 u z z r m w -> Q .-. N O Q w U Q W QN p M: w•-• + J1--¢ ZrN N "Mu UO=N N z x w w i N J w • w d : r 0 oc� •- .c�z..aa_c�orW .- .¢NNZac3 ..z�w Noo"bN z z w n •¢¢ w 0¢ O w O w O U U • x(L x Q"' LL•--'EOpammmmmm U.Up LLLLxYJE fzaaorE (n (n (n Vi (n (n (n (n (n (n in (n (n Ln (n (n (n (n (n (n (n PPPPPPPPP of P P P P P P P P P P PPP of PPPPP Y w • \ \ \ \ \ \ \ \ m \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ U< . M M M M M M M M M M M M M M M M M M M M M M M M M M M M M w¢ 00000000000000000000000000000 = p • \ U M M m \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ M M M M M M M M M M M M M M M M M M M M M M M M M M M PON-0 Community Development Department HOUSING AND RIiDEVELOPMENT AUTHORITY City of Fridley DATE: March 3, 1995 TO: William W. Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Consider Bids on Vacant Lots On February 9, 1995 the HRA conducted a public hearing to review its plans for selling the real property acquired under the scattered site acquisition program. Since then, staff has contacted fifteen (15) homebuilders to solicit their interest in developing these sites. Attached is a list of the builders which were contacted. Because the deadline for submitting bids is March 8th, a summary is not available at this time. However, staff will present a bid summary and a recommendation at the March 9th meeting. GF/ M -95 -141 '7 Q- (CA (cc Po Gko -I�i� 174 - �� Z7-_- -- _ - . _ _ -- - - - -- - t j ii ti ti 7A 2 r -z 9 5 J Community Development Department HOUSING AND RI�DEVELOPMENT AUTHORITY City of Fridley DATE: March 3, 1995 f5 TO: William W. Burns, 17,xecutive Director of HRA10 FROM: Barbara Dacy, Community Development Director Grant Fernelius, HIDusing Coordinator SUBJECT: Legislation for Housing Replacement Program Jim Casserly has prepared the attached memo concerning special legislation we would like to submit to the State Legislature this session. Additional information will be provided at the March 9th meeting. A resolution will also be presented at the meeting which staff recommends that the HRA approve. GF/ M -95 -146 Casserly Mol:zahn & Associates, Inc. 215 South 11 th Street, Suite 300 Minneapolis Minnesota 55403 Office (612) 342 -2277 • Fax (612) 334 -3382 '- M E M O R A N D U M G TO: Fridley Housing and Redevelopment Authority City of Fridley FRGM: James R. Casserly Mary E. Molzahn RE : Pilot Housing Replacement Program DATE: March 2, 1995 On behalf of the City and its HRA, we plan on introducing legislation within the next week which will establish a pilot housing replacement program (the "Program ") We previously discussed with you the establishment of a tax increment district in which we would include the scattered sites which had been acquired and are being prepared to be remarketed for market rate housing. while it is possible to create a non- contiguous redevelopment tax increment district, it is very cumbersome to administer and is fairly complex. In addition, we have the problem of the City being subjected to a local government aid reduction when it is already making a substantial contribution to alleviate its housing problems. As a result, we have been working with Senate counsel, and have discussed the concept with House Research, to establish the pilot Program that would apply only to the cities of Crystal and Fridley. Both cities have identical problems and are attempting to solve them in exactly the same way, that is, by acquiring blighted lots and then offering the lots for market rate housing. The Legislation which authorizes the Program provides that the city can designate a certain number of lots to be included in the Program. once a new home is constructed on a lot so designated, the county will collect the property taxes on the structure and allocate those t =axes to the city'a housing replacement account. Ine property taxes on the land will go to the taxing jurisdictions as would any other property taxes. The Authority may use the money in the housing replacement account only for the purposes of the Program_ The county will allocate the taxes for a period of 20 years. This is a very .limited Program and io only meaningful in inner suburban cornmun:ities. The goal of the Program is to allow the 8A city to address some of its housing needs and provide some funds for a revolving account. in order to secure passage of the legislation we need resolutions from the Authority and the City supporting the legislation. in addition, it would be most helpful to talk to your local legislators regarding your support for the Program. We will talk to you further about providing testimony to support the hill in the committee hearings. If thera are any questions or problems, please give us a call. inc /MEIN /kh • oil r � Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: March 3, 1995 TO: William Burns, Executive Director of the HRA FROM: Barbara Dacy, Comniunity Development Director SUBJECT: 1995 HRA Budget The HRA tabled action on the 1995 Budget at its February meeting. The HRA also requested a "budget" for the Southwest Quadrant expenses. Craig and I have prepared a reporting format which we will include on the consent agenda at each meeting until the project is completed. The HRA can then track the expenses as we move through the redevelopment process. Since the February meeting, there are minor changes to be made to the budget. They are: Change 4330, Professional Services, as follows: a. Phase I Apts from $10,000 to $2,910 b. Phase II Apts from $10,000 to $5,500 C. Soil tests for SW Quad from $1,000 to: 10 acres $2,000 Apts $1,000 d. Remediation Plans from $20,000 to $11,500 e. Add Remediation Expenses Fast Lube $50,000 f. Add Remediation Plan and Expenses Lake Pointe $20,000 I have been able to verify items a. and b. through actual bids. Item c. is based on actual work for the 10 acre site, but the soil tests on the apartment property have yet to be done. Items d. and e. are based on estimates from our consultant on the Fast Lube site. The consultant has also advised me that there may low levels of contamination in the 8 acre area of the Lake Pointe site near Highway 65. This is the area where the former bus company building was located. Also there may be impacts from being downgradient from the Union 76 station. Item f. is purely 1995 HRA Budget March 3, 1995 Page 2 my estimate at this time. Remember we hope to have the Petro Board refund 900 of any remediation expenses. Please bring the budget books which were included in the February packet to the meeting. If you need another copy, please call me and I will see to it that you receive another prior to next Thursday's meeting. After review by the HRA, staff recommends the approval of the 1995 Budget with the modifications noted in this memorandum. BD/ M -95 -140 E7:1 0) W Z W CL X W H Z Q Q Q W 2 0 CD N rn M 0 i 00 000 O O O O C� O O O O O O O V M Lo O O I O O LO (H 44 fA fA fA fA (A (H (H (A fA � � � � N � � � � N V N H OD a w U m t' O Z U 0 m Cn 7 a 7 c 7 Q m m tL c m O) W 0 co 0 0 0010 O M rn N N O N O N 0) M V N (y I 0 I I I 0 I I I � I I I 0 I I I I O I � I I OVA I I I 144 I I I 1 44 I I I 0 I I 1 44 I I I 1 44 I I I I I of I 64 Go I O I O ap I a0 'A I m(D 0 o °0008 000 8 8 0 0a88�88 70l )O N LO o A -q O CO )O )O N M In .: O N — (0 0 O) V N L6 In V (D p) I n aD .- W fA U) H (A W OA 44 N (A (A H (A fA C 17 44 z; 44 44 4 I v m I (A W LLI '° x 4 C Uf d) M C m (A m Z ¢ m % N C O p_ U 0,5 4D N a 7 7 2 C N J Q 0. W d o O oo r> o 11 oQ mU ¢I ¢ - -- �? m ~ a ? 2 m m m m m m m m crn m% m 3 O a m ° o o >> m L L a a a m �m< R9[§ 9 Qaa¢¢mcncnv� oaa ¢a¢¢F= V C m O) C c O U c u Q O O O m c C m a x m m Q m 6 z (D C U N c C U) II H N to J rn 2 co Q N m 3 ci Q D Q U S H Q N m