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HRA 06/08/1995 - 6288v. HOUSING & RXDZVZLOPMRNT AUTHORITY XXZTXNQ THURSDAY, JUNS So 1995 7:30 I.N. PUBLIC COPY M CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, JUNE 8, 1995 7:30 P.M. Location: Council Chambers Fridley Municipal Center CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: May 11, 1995 CONSENT AGENDA: APPROVE BILL OF-SALE FOR .REMOVAL OF GUNDERSON . .. 1 - `1B. HOME AT 5707 WEST MOORE LAKE'DRIVE N.E. MONTHLY HOUSING REPORT . . . . . . . . . . . . . . . 2 - 2A SOUTHWEST QUADRANT BUDGET EXPENSE . . . . . . . . . 3 REVENUE AND EXPENSES . . . . . . . . . . . . . . . . 4 - 4B ACTION ITEMS: AWARD BIDS FOR SOUTHWEST QUADRANT DEMOLITION. . . . 5 - 5C CONSIDER PURCHASE OF FRANK'S USED CARS. . . . . . . 6 PROPERTY INFORMATION ITEMS: CONSIDER TIF ASSISTANCE FOR NORTHCO . . . . . . . . 7 - 7P UPDATE ON HOUSING REPLACEMENT LEGISLATION . . . . . 8 CONSIDER INFORMATION REGARDING LAKE POINTE. . . . . 9 SITE (verbal update) UPDATE ON SOUTHWEST QUADRANT. . . . . . . . . . . .10 (verbal update) OTHER BUSINESS• ADJOURNMENT e CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 11, 1995 CALL TO ORDER: .:Vice - Chairperson Schnabel -called ' the May 11, 1995, 'Housing- -and Redevelopment Authority meeting to order at 7:34 p.m. ROLL CALL: Members Present; Virginia Schnabel, John Meyer, Jim McFarland Members Absent: Larry Commers, Duane Prairie Others Present: Barbara Dacy, Community Development Director Jim Casserly, Financial Consultant Grant Fernelius, Housing Coordinator Craig Ellestad, Accountant Andy Jang; Jang Wan Restaurant David Landes, 5928 Woody Lane APPROVAL OF APRIL 13, 1995, HOUSING AND REDEVELOPMENT AUTHORITY MINUTES• MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the April 13, 1995, Housing and Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA: 1. RESOLUTION AUTHORIZING EXECUTION OF DEVELOPMENT CONTRACT WITH WHITNEY HOMES, INC. (FORMERLY TOLLEFSON HOMES) FOR 677 HUGO STREET, 539 GLENCOE STREET, AND 547 GLENCOE STREET Mr. Meyer stated the bid was awarded to Tollefson Homes who was the low bidder. Tollefson Homes has now changed their name. Does this change of company name create any legal problems? Mr. Fernelius stated he had discussed this with Mr. Hoeft who saw no problem. Mr. Hoeft called the state and determined this is a company in good standing. There is no problem with this company or with the name change. Mr. Meyer asked if there was any problem with the fact that the price changed. Is there any problem for the HRA? Mr. Casserly stated the HRA did not have to publicly bid. The HRA did an ad hoc procedure and he felt the HRA had all the latitude they wanted to accept, change and /or modify. This is 1 HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 11, 3.995 PAGE 2_ not like bidding for a public improvement project. Ms. Dacy stated, at the last meeting, Tollefson had the successful proposal for the first three lots. The HRA:held the --remaining- lots and °asked staff•to negotiate with Tollefson., These lots are a product of that direction. She thought this was fine because staff was operating under the direction of the HRA. Ms. Schnabel stated there is probably a paper trail that exists for the company and the change of name. Ms. Schnabel asked, if the HRA approves the consent agenda, would this automatically approve the home designs as well. Ms. Dacy stated yes. Mr. Meyer asked if the home designs give the specifications for. construction. •It would.be good to remind them.or the City building inspector that the Minnesota state building code•does. require vertical reinforcing steel in basement block walls for homes. Some inspectors do not know this yet. 2. APPROVE HOME DESIGNS FOR SCATTERED SITE PROPERTIES 3. MONTHLY HOUSING REPORT 4. SOUTHWEST QUADRANT BUDGET EXPENSE 5. REVENUE AND EXPENSES Mr. Ellestad provided copies of additional expenses needing approval. The two significant items on this list related to the condemnation of the Suh property. MOTION by Mr. McFarland, seconded by Mr. Meyer, to approve the Resolution Authorizing Execution of Development Contract with Whitney Homes, Inc. (formerly Tollefson Homes) for 677 Hugo Street, 539 Glencoe Street, and 547 Glencoe Street; to approve the home designs for the scattered -site properties; to approve the Monthly Housing Report, to approve the Southwest Quadrant budget expense; and to approve check register #25516 through #25535 with the additions contained in the memo of May 11, 1995, from Mr. Ellestad for a total of $752,998.76. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: 6. CONSIDER TIF REQUEST FOR 6279 UNIVERSITY AVENUE N.E.; GARY WRUCR HOUSING & REDEVELOPMENT AUTHORITY MEETING. MAY 11, 1995 PAGE 3 Ms. Dacy stated staff is recommending to table this item. This afternoon, Mr. Wruck contacted:her.office.to table this item for action at the June meeting. She had spoken to Mr. Wruck and told him.of the conversation she had with Chairperson Commers and the recommendation — of the -Executive Director,, Both. were concerned,. . about this request and were concerned about establishing a new priority for discretionary funds when the KRA is already identifying housing and redevelopment sites for priority. She advised Mr. Wruck that he should be aware that staff's recommendation would be to recommend denial of the request. Mr. Wruck then contacted Mr. Harris and came back requesting to table this item. They will be contacting the Executive Director to meet with him. MOTION by Mr. McFarland, seconded by Mr. Meyer, to table consideration of the TIF request for 6279 University Avenue N.E. UPON A VOICE.VOTE, ALL.VOTING-AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 7. CONSIDER AWARD OF BIDS FOR DEMOLITION PROJECT #281 FOR THE SOUTHWEST QUADRANT Ms. Dacy stated, because of the potential lawsuit regarding the apartment buildings as part of the Southwest Quadrant, staff is recommending the HRA table awarding the bids until the June meeting. The bids were put out to include the apartment buildings as well as the other buildings as one contract. Until we know what is going to happen with the apartment buildings, staff has contacted the potential bidders, postponed the bidding date, and rewritten the bids to separate out the apartments. In this way, the HRA could award separate contracts. Staff did not want to have the HRA award a contract and later have to say they could not do that and have a breach of contract. Staff has rewritten the bids and resubmitted the bids to the contractors. The HRA can award the bids at the June meeting. Ms. Dacy stated the second item is that, after the last meeting regarding the request from Burger Ring, the Burger King owner and Mr. Burns met. Staff gave them until the end of the business day on May 29th to occupy the building. Since that time, staff has had three other requests from tenants in the strip mall requesting a similar extension. Ms. Dacy contacted the City Attorney's office. Staff's recommendation is that it is okay to have those tenants remain until May 29. Staff is recommending that the HRA also authorize the tenants to stay until May 29. That is the last possible day. We then have to have the abatement contractor come in to begin asbestos removal. Demolition is to begin on June 12. HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 11, 1995 PAGE 4 Mr. Meyer asked where this would put the Burger King employees. Ms. Dacy stated she was not a part .of that meeting but she understands :that this. date was acceptable. -She did not know what action they would take. Mr. Meyer asked if May 29 was satisfactory for the other three tenants. Ms. Dacy stated she believed Andy Jang was trying to find another restaurant location. She believed the seafood business found a place. She has not talked to the Oriental Grocery. She cannot see going beyond the date of May 29 for the work that needs to be done. Mr. Meyer stated he respected the timing, but he was puzzled. Because of their convenience., they have changed the bid.date for demolition and the world did.not-come.to an end.for demolition.' This shoGrs we can be flexible on this deadline, but-he was - puzzled as to why they could not be flexible with the tenants.. Ms. Dacy stated this is a multi -phase project. We still have to deal with the apartments, the liquor store, and the pavement. We have been able to adjust the schedule but, as we go later, we will have some serious problems. MOTION by Mr. McFarland, seconded by Mr. Meyer, to table the bid award to the June meeting. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE NOTION CARRIED UNANIMOUSLY. MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve an extension of time to May 29, 1995, for the tenants of the Suh property. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 8. JOINT ACQUISITION OF A SCATTERED -SITE PROPERTY Mr. Fernelius stated this particular property was brought to the City's attention by Mr. Landes who lives at 5928 Woody Lane, which is to the rear of the subject property. The property at 1207 Gardena Avenue is a single family home. The property is in a deteriorated condition and has a long history of problems. There are a number of code issues in the last few years. It has been a concern of the neighbors for some time. Mr. Landes notified staff about his concerns with the property. Mr. Landes stated the property would probably be marketed in the near future and expressed concern that it may continue in its current HOUSING & REDEVELOPMENT AUTHORITY MEETING. MAY 11, 3.995 PAGE 5 condition if sold. Mr. Landes approached us about a possible acquisition of this property under.the scattered -site program. Mr. Fernelius stated.he.would like to explore several issueek or options. Orie op-U6n could be*'to' purchase the property"directly under the scattered site program. The problem is that the appraised value is more than what has typically been paid for other scattered site properties in the -past. If, however, they did this, the buildable lot could be resold for construction of a new home. Another option is to sell the land to the adjoining property owners for a predetermined price which Mr. Landes quoted as approximately $30,000 for the land. Staff is asking for feedback and to see if this is the type of project the HRA may be interested in. If so, staff can come back with additional details. Ms. Schnabel asked if the property was owner occupied and if it,... was currently for sale. Mr. Fernelius stated the property was owner occupied and is expected to be for sale in the near future. The property has been appraised. Mr. Landes stated the tax value is $74,500. There is no logic to that based on the surrounding properties. Mr. Fernelius stated the property is appraised at $64,000 as is. Mr. Meyer asked how staff have gone about selecting the properties for the scattered site program. Mr. Fernelius stated they have used a number of different means. Originally, staff did a windshield survey which was the basis for the initial acquisition of properties. Since that time, staff has discovered properties through the rental inspection program. Staff has also had property owners contact them directly about properties. Mr. Meyer asked if it was correct that staff had not just relied on comments from public officials but also on comments from private citizens. Mr. Fernelius stated this was correct. Staff conducts an inspection and evaluates each property. For this home, staff has done only a drive -by inspection. He did not know the condition of the interior. Ms. Schnabel asked what the code violations were. Mr. Fernelius stated there had been problems with exterior storage and there have been complaints from neighbors with the HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 11, 1995 PAGE 6 way the property has been maintained. There has not been a thorough inspection for building code violations. Mr. Meyer stated he thought they should be very careful in the criteria.. used - to• select ' a site -and then go 'in • •arid • inspect,. - The proposal to'take the property and then have the neighbors purchase the lot to attach to their land, no matter how well intentioned that may be, would have a very poor connotation to the whole operation. In other words, to make land available for the gain of a very immediate group could be misinterpreted. They should be very cautious in using that particular approach. He is bothered with acquiring property to resell to surrounding property owners. His first reaction is that this does not sound like a good operation. Mr. McFarland asked if there had been a history of lack of maintenance because of the present owners. 'Mr. Fernelius-stated that is what he understood. Mr. Landes stated the home has been owned by the current people for about ten years. Before that, it was as bad or worse with many vehicles not operating and trash in the yard. The property has never been taken care of, not even as much as the grass mowed. There has never been anything done to it. The garage roof sags noticeably. He probably has a negative view of it but it does not seem like it has any rehab value. He can appreciate what is being said, but the neighbors are not stuck on any certain way of making something happen. It is a possibility that he would be interested in owning and developing it. We are willing to try to do anything to help the current issue. Some of the violations are vehicles and general trash that has been laying for two to three years without being moved. He has initiated some of the complaints. The neighbor on the other side feels strongly about it because the property is only two to three feet from their property line. That could probably not be changed because of the grandfather clause. Ms. Schnabel stated, depending on what is on that site, there is a three foot setback. That may not be a violation of the existing code. Mr. Landes stated that could be but he was not sure. This property has been an eyesore for years. He would like to take an opportunity that is there to resolve the problem and is willing to put some money into it to resolve. None of the neighbors really want to own the property for the sake of adding on to their properties. That is not the goal. If something else could fit the criteria, that would be great. L HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 11, 1995 PAGE 7 Mr: McFarland asked how much frontage this property has on Woody Lane. Mr. Landes stated'it is almost a poi,nt.there. It may be about ten feet'. , Ms. Dacy stated the intent of the scattered -site program is to take abandoned, blighted or dilapidated properties. If the lot is buildable, the HRA would convey the lot to a builder to put in a new house and improve the tax base. If the property were to be conveyed to the neighbors, the HRA would also have to evaluate that. Mr. Landes stated he was only bringing it to the City's attention to try to make something happen there. Ms. Schnabel stated she shared the concerns -that the HRA would b.e setting a precedent that would be a little difficult to. sustain. She can appreciate the fact that as neighbors you have had to* deal with a property that is not of the same standard as your own but she though it beyond the scope of the HRA's responsibility to go into a property and purchase it on the basis of the neighbors not being happy with the situation. We have to have more substantial proof that this is something that would require our attention. That proof would be code violations or abandonment. She is not comfortable with the neighbors purchasing the property. She would hate to have people coming in and saying they think a property is bad and the HRA should buy it. Mr. Meyer stated, if these people were going to sell, they must have an inspection to outline the various defects. Ms. Dacy stated this is not a City requirement, unless a mortgage company or private institution requires it. Mr. Meyer stated let us say, for example, that this is a blighted house. Good judgement says the garage roof is sagging. Would there be a way to make an inspection, to see where this property is in respect to our priorities, and to see where it is on the total scale? If the garage roof is sagging, there is evidence of a problem. Ms. Dacy stated she is not hearing an objection to exploring or to doing some research, but she is hearing reservations about buying the property and selling it to the neighbors. Staff could determine if the property is eligible under the program. Ms. Schnabel stated the HRA would continue this matter until receiving a report indicating this should be considered for the scattered -site acquisition. HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 11, 1995 PAGE 8 9. ACQUISITION OF FRANK'S USED CARS PROPERTY Ms. Dacy stated this site is a nonconforming use in an S -1 Hyde Park neighborhood.. The site was identified as..a top priority.in. -the recent 'development•--priority analysis'-because of -the* age; condition, and impact on the neighborhood. The owners recently passed away. Concurrently, the Custom Mechanical property was purchased by the City Council and demolished. Staff will be going to the City Council with a recommendation to convey those lots to the HRA to include in their program to sell for future construction. The Hyde Park area in the 1995 budget was identified as a focus area. Ms. Dacy stated, if this property is purchased, four single family lots could be created for resale. Each lot would be 75- foot lots with a tag parcel along University Avenue. This would be a neighborhood win. There is no question about the visual impact of this use on the neighborhood..and the impression from the neighbors. Mr. Casserly stated-the HRA could possibly create a TIF district and recoup some of the acquisition costs. Ms. Dacy stated Mr. Burns has been negotiating with a representative for the property since about January. On May 9, Mr. Burns sent a letter offering to purchase the property for $140,000 subject to the estate waiving any relocation benefits, no separate payment would be made for fixtures, and the family would take responsibility for environmental cleanup. Those cleanup costs are 90% reimbursable from the petrol fund. So far, she believed the estate was willing to accept those terms. The issue is now the dollar amount. The acquisition funds proposed are subject to the approval of the HRA. Mr. Burns is requesting the HRA authorize him to execute a purchase agreement for acquisition subject to the above mentioned terms and not to exceed $145,000. If the HRA would authorize staff to do this, it would be subject to Chairperson Commer's approval. Mr. McFarland asked the location of the property. Ms. Dacy stated the property is located on 3rd Street north of 57th. Ms. Schnabel asked if there was vacant land to the north of the two houses on 57th. Ms. Dacy stated there is a vacant right -of -way. Mr. McFarland asked if the 300 feet faced University Avenue. Ms. Dacy stated yes as does the remaining tag parcel to the south. HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 11, 1995 PAGE 9 Mr. McFarland asked what the cost would be to tear down the building and for how much the lots would sell. .Ms..Dacy stated demolition of the - building would.cost approximately $1D`; 000 to ' $15,'0'00: She thought each `lot 'would' sell for at least $15,000. Ms. Schnabel asked if there was the possibility of making this a TIF district. Mr. Casserly stated they had examined this site several times before when they were trying to do the Gateway project. There are all kinds of variations of things they could put together, and he felt this was a good candidate for the original concept behind tax increment. The real issue is not going to be the acquisition price but he is guessing there will be environmental concerns that will continue. He felt it would be a while before: that is resolved. Mr. McFarland stated if the risk is that the clean up is in excess of value of the property and that the family will walk away from it. Mr. Casserly stated the problem is that the petrol fund does in fact cover anything to do with tank storage. It is the non -tank storage costs that one could run into. If the purchase agreement is put together right, it is the family's expense and responsibility to bring the property up to grade. One problem could be that the family would not do that and continue to use the property as it has been used. MOTION by Mr. McFarland, seconded by Mr. Meyer, to authorize staff to execute a purchase agreement subject to the waiving of relocation benefits, no separate payment for fixtures, and the estate will take responsibility for environmental cleanup; not to exceed $145,000; and subject to Chairperson Commer's approval. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 10. AUTHORIZE EXPENDITURES FOR LANDSCAPING /NOISE ALTERATION AT 5707 WEST MOORE LAKE DRIVE Ms. Dacy stated this was in regard to the Gunderson home, the second of the two homes related to the Lake Pointe property on West Moore Lake Drive. The Gunderson home was purchased on May 1, 1995. The next door neighbor at 5719 West Moore Lake Drive has a serious buyer interested in that property. That property has been on the market since last fall. These owners had sent a letter to Ms. Dacy and the HRA. After the Hedman home was removed, they felt they had experienced an increase in noise. HOUSING 6 REDEVELOPMENT AUTHORITY MEETING, MAY 11, 1995 PAGE 10 A noise study was completed by a consultant, and they determined that the sound from the highway will not significantly increase above the existing amount. By removing the Gunderson home, the human ear would not determine any increase in.the-noise.- Ms. Dacy stated, last fall with direction from Mr. Burns, staff communicated to the owners that a vegetative buffer could be considered by the HRA knowing that when the street is completed it will require some type of buffer anyway. She and Ms. McPherson went to the site and Ms. McPherson came up with a recommendation for plantings. Staff is recommending.a row of four 3 -inch crimson Ring Maples, a row of sixteen 8 -foot Black Hills Spruce, and a massing of 25 -30 Red Osier Dogwoods. They went to the site and placement can be accomplished without infringing on the proposed right -of -way of the proposed re- alignment. Staff is aware that future owners may want to build a two -car garage so we may want.to hold off until we know. The estimated cost for the-landscaping is $10,750, which was the lowest of six quotes. Staff could develop a phasing plan as to when this should be installed. In terms of the budget, there is $10,670 in the budget to replace the plaza trees. They could shift those funds to this project. As they did with'the Hedman house, they can take bids to have the house moved from the property and recoup some of the costs. Mr. Dacy stated staff would like the HRA to authorize staff to phase installation of landscaping not to exceed $10,750 and to authorize quotes on having the house moved from the property for approval by the HRA at the June meeting. Ms. Dacy stated she has communicated with the owner and the perspective buyer and said the vegetation is not intended to reduce the noise. The sound that you are going to hear from Highway 65 is what you are going to hear. Planting the trees may help but she will not guarantee that this will reduce the noise. It will improve the appearance from Highway 65 and, also in the future when they do realign the roadway, will provide a buffer. Ms. Schnabel asked if the HRA had these kinds of monies in the budget. Is it staff's intent to transfer the tree replacement project funds for this? Ms. Dacy stated yes. The tree replacement project has been budgeted for two to three years and has not been completed. Mr. Meyer stated it seems like a lot of public money for a private enhancement for a dubious cost. No one is able to say removing the Hedman home has increased the problem. Ms. Schnabel asked who would be responsible for maintenance. IL HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 11, 1995 PAGE 11 Ms. Dacy stated staff was contemplating adding these properties to the Lake Pointe maintenance contract. There needs to be some top soil placed and reseeding. Until the lot is conveyed to a developer, it.would be their responsibility.., Mr. Meyer asked how adamant the owner was about this problem. Ms. Dacy stated the owner was very adamant. This is the first potential buyer that they have had in the six to nine months that the property has been on the market. Ms. Schnabel asked if the sale of the house would fall through without this. Ms. Dacy stated she thought, if they did not do anything, it would jeopardize the sale of the property. If the HRA proposes to do . some type_ of landscaping, that would not hurt the sale of... the property. If we did nothing, then it would. Mr. Meyer stated this sounds very generous.. He would like to have staff skim that down. Ms. Dacy stated the major cost is the Black Hills spruce trees. Staff is proposing 16 of them so that is a lot of trees. Mr. Meyer stated these trees are 8 feet high and have to be planted with a good amount of space so they are not going to be effective for a number of years anyway. Ms. Dacy stated Ms. McPherson has recommended these trees be spaced 15 feet on center. Mr. Meyer stated they will not be sound buffering for years and years. These trees would probably be six to seven feet in diameter. Ms. Dacy stated she had explained that the trees may not reduce the sound. We are trying to improve the aesthetics and view from the roadway and to provide a start of a fairly good screen for when we do the road alignment which will be closer. If we get a good amount of buffer established now, it will help what are going to do in the future. It will also take away the lights from the traffic. We could reduce the number of trees and reduce the total cost. Mr. Meyer stated residents living on East River Road have problems with lights and noise from cars and people put up fences of an attractive nature at their expense. That is an immediate aid to both noise and lights. HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 11. 1995 PAGE 12 Ms. Dacy suggested the HRA authorize staff to go to $6,000 including any potential costs in terms of maintenance. If there are issues about providing water or any of those maintenance issues, that would be include and be deducted.from the $61.000. MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve an expenditure for landscaping /noise attenuation not to exceed $6,000 which shall include the cost of maintenance for the landscaping and to authorize staff to take quotes to move the house. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 11. ESTABLISH SPECIAL HRA MEETING FOR MONDAY. MAY _15. 1995 Ms. Dacy stated-the intent is for the HRA to meet with the City;.; Council regarding the Southwest.Quadrant. A regular City Council meeting will occur firs and those items should be completed by 9:00 p.m. She will call members regarding the time. MOTION by Mr. McFarland, seconded by Mr. Meyer, to establish a special HRA meeting for May 15,,1995. UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. INFORMATION ITEMS: Ms. Dacy referred to her memo of May 5, 1995, regarding the Southwest Quadrant and the information in that memo regarding the necessity for drainage improvements. Staff has determined that will be required despite what is going to be on the property. In the public improvement part of the budget, Rottlund is proposing to pay for the cost of 3rd Street. That was an anticipated cost which will be a savings for the HRA. The proposed drainage improvement is estimated at $20,000. Unless the HRA has any objection, staff would like to include that as part of the HRA costs. Ms. Dacy showed the four computer- generated still photos of the proposed Southwest Quadrant. Ms. Dacy also showed the computer video of the site. The Planning Commission had a problem with the 16 -unit townhouse buildings. The developer did not agree but came up with 8 -unit townhouse buildings. The video and stills provide examples of each type of building. The Planning Commission has also requested the addition of more brick to be used in the design. HOUSING & REDEVELOPMENT AUTHORITY MEETING MAY it 1995 PAGE 13 13. UPDATE ON LAKE POINTE Ms. Dacy stated staff would be meeting with Galbraith Companies and MEPC to discuss the concept of potential terms of an. exclusive development agreement: •• There. was an article .in: tine •. Focus this week. Staff will report further in June. Ms. Dacy stated that Home Depot has made an offer on the Lake Pointe property. They are currently looking at a site opposite Holiday Plus on Main Street. 14. UPDATE ON 1995 ANNUAL REPORT Ms. Dacy stated she would like to review some of the articles staff will be doing for the upcoming annual report. Mr. Fernelius will be writing about the Whitney Home construction on the scattered sites. Staff was also thinking of writing an article on how to.•select a contractor.or focus on some part of the rehab process, an article about the ACCAP lease hold cooperative and that the HRA provided assistance, and the typical information on housing programs. Councilmember Schneider is doing an article on the progress made on some of the housing programs and some of the issues that we have come up against. We also had reference in there to some of the recent issues about the Southwest Quadrant but she did not know if they would be able to publish that at this time. She asked if the HRA felt any of these articles were inappropriate or if there was anything they would like to add. Ms. Dacy also mentioned that the annual report has not had pictures in the annual report for three years. Mr. Meyer suggested they also write a story about the HRA's rebate to the school district to show that the monies flow back to the school district. ADJOURNMENT: MOTION by Mr. Meyer, seconded by Mr. McFarland, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED AND THE MAY 11, 1995, ROUSING AND REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 8:58 P.M. Respectfully submitted, 0 ,7 /f/to Lavonn Cooper Recording Secretary i P 8 I G N- I N S H E E T HOUSING .AND REDEVELOPMENT AUTHORITY MEETING, May 11, 1995 Name Address /Business AVID Z:AAA)ES C)?Zy e<J&4j:�9C)y 1AA)E. r � Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: June 2, 1995 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Bill of Sale to Sell Home at 5707 West Moore Lake Drive N.E. Similar to the process that the HRA completed with the Hedman home at 5695 West Moore Lake Drive N.E., I contacted three house movers for a bid to purchase the house and move it off the property. Of the three bidders, only Ken Ernst of Ernst Machinery and House Movers Corp. submitted a quote. Ernst was also the successful bidder on the Hedman home.: Ernst is offering the HRA $4,100. This is similar to the bid which Ernst offered on the Hedman home. The- attached Bill of•Sale is -'similar- to. the previously- executed. Bill of Sale for the Redman home. Appropriate insurance must be supplied to the HRA, and if the home is not moved from the property by September 1, 1995, Ernst forfeits $2,100 'of the $4.,100. Recommendation Staff recommends that the HRA authorize the Chairperson and Executive Director to execute the attached Bill of Sale. BD /dw M -95 -315 1 42ti1 x'19+ 1 3456 7890 425171'3+ P. 92 f T ERNSTLacknery and O-[.ousemovCorporation s Corporation 4400 85TH AVENUE NO. - MINNEAPOLIS, MN. 55445 - PHONE 426 - 2822 May 25, 1995 Barbara Dacy City of Fridley, Minnesota Re: 5707 Moore Lake Drive House Dear Ms. Dacy: We, Ernst.Machinery'and Housemovers Corporation propose to purchase and remove the one story house at 5707 Moore Lake Drive for the sum of Four Thousand One hundred Dollars and no -100 ($4,100.00). We unde.rstand: that the City will be responsible for utility disconnects and we are to remove foundation.and'debris' and grade off the:si-te.- Our projected removal date is August 30, 1995. Thank you. Sincerely, ERNST MACHINERY AND HOUSEMOVERS CORPORATION Kenneth R. Ernst President KRE . JS 1A BILL OF SALE "- FOR VALUABLE CONSIDERATION, Housing and Redevelopment Authority In And For The City of Fridley, a body corporate and politic under the laws of Minnesota, Seller W` (whether one or more) hereby sells and conveys to Ernst Machinery and Yr Housemovers Corporation, Buyer (whether one or more) the following personal = property located at 5707 West Moore Lake Drive N.E., Fridley, MN 55432: <:= The house and any attachments and fixtures. subject to the following liens, claims, and /or encumbrances: 1. The Buyer shall- remove any foundation including the basement on the property and shall provide -clean granular fill sufficient to fill in the foundation. 2. The Buyer must provide the Seller with a Certificate of Insurance naming the Seller as an additional insured party until the house is removed and the work described in 1 above is completed. 3. If the house is not'removed by September 1, 1995, the title to the house shall revert to the Seller and Buyer shall forfeit $2,100 of the $4,100 paid for the house. Seller shall refund to Buyer the sum of $2,000 whereupon this Bill of Sale shall be considered null and void. Seller agrees that Seller is the owner of the personal property described above, that the personal property is free from all encumbrances (except as listed above) and that the Seiler has -the right to sell and convey the personal property to Buyer. Seller agrees to warrant and defend the sale of the personal property to Buyer against any and all person(s) who claim title to the personal property described above, subject only to the encumbrances listed above. This Bill of Sale shall bind the Seller and benefit the Buyer and .their successors and assigns. _ Date: As of June 8, 1995 SELLER Housing *and Redevelopment Authority In And For the City of Fridley By Lawrence R. Commers Its Chairman ,,..` By ^ A;_ William W. Bums Its Executive Director STATE OF MINNESOTA . } • } ss COUNTY OF ANOKA } The foregoing was acknowledged before me this day of , 19 by the Chairman and Executive Director of The Housing $ Redevelopment Authority In And Frjr 3tie City of Fridley, a body corporate and• potiti'o:tinder- laws of ' .Minnesota, on,behalf of the.Authonty: Notary Public Drafted by: City of Fridley 6431 University Avenue NE Fridley, MN m tr - 0 a °o, to -p°0 a .� ch in '"l a • .� rl 41 ON O a� H tp 41 v b '♦ -rl O O to 7-'� i - �1 pO, U O i� U O $4 a P, O' m •• to -4J V 40 40J (03 w rl •r I tT o t l In b 0 V O O M44 raw m Cl) to U m � H O 1d m m a o • m O 0 m H r-1 ..UPI t7 yr t0 7 > •r'1 • .7'1 mVx "4 tr o O • 3 -� t? � - -�+ m r�y 1~ C -. 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A Q9"Jm a ei U O�NG 0UA h V 4) O bp-ri Rd .O m tdx0bp b o b% a $4 O -r♦ 0 r —.o ZHM+) 2A o m bi f � O FI w 9 P, -ra -ra V U b+ �d G w 0 m A ed N W' O U N A 0 4J W w tn a C r-I • CO Cl a h O b b � r-i 4) O 0 a � 'd o M 4(& H to C% C% r-I 14 +1 w° FA O � - 4) o V H A.'d � m w m o a W 4 O O s z $4 0 Z � � 3 0 s NW —o waD 4aN I W �y f9 fA NW �8 O�Of W �ONn N It Q 1D p (LI N M 1A Ol N w N W (O t7 tD I tD U S U K 19 f9 fA 4a GO CIJ 404044 C M N I y 1 v �o m I� 1 O 1 I I I O N m '� w N 1 z to w , v' CL a ' I x I w �I , I O W (000a O OD OD m I w l)b N N OI O C i I C = I4L4 ao It °0 88 ' t! N 10 O O O 0 � n v m 0 N NLO .- OOD C I a x to m m n tto O U N tOr) O' n IL ci N N co 49 Q m x m ' to a 14 I � � N O lh I M m m N 0) N O ,^ C Of O N I 4w �j �c c 3 F O W � p 8 O 0 1g 0 l9 vn�ON�<OtDtA�N1g1A t0 � N t+� i I I O p801 R 8 N Beg §§§ §§° 00 -8$ g §8 3o V�o - a 4 - W -W q o GD O 0 4 10 N � 9 f ( f CY � � 44 3 Q N (' W 0 � x m o > Q �' 2 v� m m 0 LE Z Z Z m '�'� ado a` c > >- _ Off'' Off' o. �p ��,� $� E $ F Q g turf gc `o o °Oia�Q— pQQaaa� �, aZ$ < a ?o Goo O CL i � s� "' W �� .• .. m m m m N` CL CL O C � m 0 vr� 0- co< c com10 U z r PTO: FRIDLEY H.R.A FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES MAY 1995 ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES ADMINISTRATIVE OVERHEAD COMPUTER OVERHEAD (For Micro & Mini computer:) TOTAL ADMINISTRATIVE BILLING: OPERATING EXPENSES: POSTAGE BY PHONE — POSTAGE WENDELL'S — " FRIDLEY HRA" STAMP NORTH MEMORIAL — WELLNESS TESTING POSTAGE BY PHONE — POSTAGE AT &T — LONG DISTANCE US WEST — TELEPHONE SERVICE BENEFITS EXPENSES: CITY OF FRIDLEY — HEALTH INS CITY OF FRIDLEY — DENTAL INS CITY OF FRIDLEY — LIFE INS Account #'s for HRA's Use Account #'s for City's Use 14,967.25 101 - 0000 - 341 -1200 267.83 101 - 0000 -336 -3000 194.42 101 - 0000 - 336 -3000 460-0000-430-4107 15.429.50 262- 0000- 430 -4332 460- 0000 - 430 -4220 262 -0000- 430 -4330 460 - 0000 - 430 -4332 460 - 0000 - 430 -4332 460 -0000- 430 -4332 TOTAL OPERATING EXPENSES: 262 -0000 -219 -1001 262 -0000- 219 -1100 262 -0000 -219 -1200 TOTAL BENEFITS EXPENSES 98.21 236-0000-336-3000 25.29 236 - 0000 - 336 -3000 41.50 236- 0000 - 336 -3000 14.53 236- 0000 - 336 -3000 2.84 236- 0000 - 336 -3000 13.52 236- 0000 - 336 -3000 195.89 192.00 236 -0000- 219 -1001 20.53 236 -0000- 219 -1100 8.50 236 -0000- 219 -1200 221.03 TOTALc-IEXP.ENDI•TURES• - -- .MAY-1995 File: \123DATA\HRA \TIF\BIWNG.wkl Details n] P . \ . 1 C� . 1 O . 1 W � w I I 0 W I I O-WIc W . 1 CL z . / 1 z oe I 1 a W I I i3 OC I / U L) I 1 r Q I I r I U . 1 w / 1 O r I 9 I d . 1 t 1 / 1 I 1 I 1 1 I I 1 1 r r 1 1 I 1 1 I 1 1 1 1 / I I [1C I I W 1 H I CL I W 1 O I U r W . 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C3, Co \ u1 w x . . �n y�1 1n 1n W PPO•OM•OM.POM.P POM•OM•PPOM.OM.OM.POM.PPP OM.OM.OM.OM.POM•OM•OM.P OM. OM. OM.PPP OM•OM. OM• PP OC W . Y W . \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ QO -i . UF- . NNNNNNNNPPPP.O.O•O•O •0 .0 .0 .O .OrNNNNNNNNN NNNNNNNNNN CL 0 p. W Q. N N N N N N N N N 0 C. 0 Cl 0 0 0 0 0 0 0 0 0 0 0 C. 0 0 Co 0 W O �•+ . x p . \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ aWLL U ; u1 1n 1n M u1 1n In M in M M M in M u% v% 1n 1n w 1n M o o% 0.0•0•0.0•0.o.0.0.0.0.0.0•0•010 P P N M S r J Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: June 2, 1995 TO: William Burns, Executive Director of HRA *)4 FROM: Barbara Dacy, Community Development Director SUBJECT: Award of Bid for the Southwest Quadrant Redevelopment Project #281 At the May 11, 1995 meeting, the HRA tabled action to award the bid such that an amended bid could be completed to separate the apartment bid from the bid on the commercial buildings. A bid opening was conducted on May 17, 1995. Included in the specifications was the requirement to identify a gross bid and a bid on the salvageable materials remaining in the commercial buildings. Staff also contacted four•.salvage contractors to receive. comparison`bids with•'the bids- from.the.demolition'contractors. A salvage bidder, Bauer Wrecking and Salvage Company,. has submitted a $10,000 bid on the salvageable items in the strip mall and Burger. King. In order to achieve the lowest cost on the project, the: Bauer * salvage bid should be accepted and -the proj ect :.awarded to Herbst and'Sons at $194,200. 'Subtracting.the.salvage bidder amount at $10,000 from the Herbst bid would leave a total cost to the HRA of $184,200. In comparison to the budget, the total cost is $62,974 below the estimated budgeted amount of $247,174. Recommendation Staff recommends the demolition bid be awarded to Herbst and Sons for $194,200 and the salvage bid to Bauer Wrecking and Salvage Company for $10,000. M -95 -316 5 rl 00 N O z G E r oU ~ W � 04 z0W " .4 E v •a °• c Op Z H a W c a c a O w HN 'dam N 8 �4 co O jH 4 0 N CO o OD O W O O O r' 'n -+ 00 n OD N N O O O o O O A ID N w O M Ch 'd' N .4 'w N � N � � N• G eq r• N to O d� O O O O O "It N C I tD O N N W O O U N •-i M 'w N O N M W eN M N tM N GV .-i C ea GO H fJJ VY y? H tQ .4 Vl N VJ N F9 hd d a O � O U13 O O O O O O cD .a U'3 00 co O O O u0 N O m Ir M 'd' n M 07 of le C O CV 0 CO 1 f9 da d? N N M PN to 69 E9 fA fA N � i9 � co w °M o o g m 0 0 0 0 E-- ao .°n C o coi °o °o Cl °o d o � m ko OD w w 00 t- iyr � � ws -4 e�q GO � � � Q' O to p O N' O p 1 •N M O [� M � co • .. C4 O e1' oO 00 M .O 1 M .N.i �- �•. - oo O1 co M^ OOi Im 643. to 0) U U q �+ ca U m CD d m m pq a b z 10 LO 10 LO ya ptlp q Cd S `s e S o 0 a Cd Cd urd%� 00 N zz U� Wa .� e aT pc ►r T •d� c� H Q •33 m H x C43 la r4 S co S co o .4 m a o § ars � w e °w eq t o ao U N 64. Cq Go N W N m co M N a CM Ch rr ►r 64 W GO W !N 69. N .�.� to O aD 10 O m o0 O O O O O l co Cq co �1 e0� M m C) CO O O O O d 00 CO ko 00 O � N O O N O ao E- 1 m co oo 6 � O I IW a o o 0 co 0o 0 M o oo ti m co 8o 0 o r $ .Fa N 1j N N �• CD O O ,. ' fp O� N r4 d E� Cr4 M O 649. O O O O O �y ►�•� ►.v i0 O N x a co o :� co Ca m� M CO m M -.-� .Na 4. n O W O t; m CIO GO o b ¢ z o 8 OR o o OR UZ o o o LO ° .0 0 2 c c ,C_� v► c 2• m c v c N C y C W o c EL C 0 Q EE m m C 15 c � cC to E ma � E .l (a ca m U 2 2 2 p � Bauer Wrecking & Salvage Co. DEMOLITION CONTRACTORS 174 ARLINGTON AVENUE E. • ST. PAUL, MINNESOTA 55117 TELEPHONE: 489-9044 OWNER Clyde Moravetz AGENT ARCHICT TO: ................................................................................................... CONTRACTOR Made this. J ��)4 .. ......................... day of ......... �!�ky ............................................... 19..95. For ........ 9%0.PMk?At./PA!Y499 ................ ; ............... ................................................. Located at. AMQ. RAjyI;?4skjty..Ave....N.- E ....... ............................................................. in the City of.... _Fr idlpty ............ ... .................... . State of ...... M... .n...................................... Subject to the Terms and Conditions hereinafter stipulated: (1) We agree to vX*X%"KX9tcKremove the ii*3t clescritiecl`Xff"K ....... in accordance with the following specifications: We agree to pay $7000.00 for all equipment in Strip Center We agree to pay $3000-00 for all building salvage in same Strip Center. We will furnish Workmen's Compensation Insurance, Public Liability Insurance in the limits of ...'55.0.0. ,.O.QO ...........and ...S Q.O.1.0.0.0. r ........................ Property Damage Insurance in the limits of .................................... and ..................................... Other insurance umbrella.......... ............................................... I .......................................................... t ............................................... ....... I ............................................ ! ............................................................................................... ....... (2) We will do this work for and in consideration of.bur receiving all salvage of every .nature and djkhjpdori conlihicd idzisdorderivetfifrom said wwking, iitt.of wlqrh is to bc; come our **4ertY, and iKN4*XWX4W%K*KK)@W1@X)U .......... : .................................................... .......... ................ ................................................................................................................ Dollars ($ ................................. payment of which shall be made as follows: ........................................ -------------- (3) Payments got•made according to Contract Agreement will be charged 1% per month. Contractor, an (4) This proposal, if accepted, slud! constitute a contract and agreement between the Wrecking Contractor and the.Owner, Architect or General v or, or y of theii agents, for the wrecking of the buildings or structures named herein. (5) Notwithstanding the reference in previous paragraphs to "wreck, dismantle, and remove," indmotherw ise-specifically stated in the specifications, the =Contractor reserves the right to dismantle the building or buildings by reducing the floors, walls, ceiling, and roots to Hat panels, or to remove the building as a whole or Iy0aT&&a=whole, or by accomplishing such wrecking, dismantling, and removal by such other means as it elects. (6) This proposal is submitted under the assumption that the buildings or structures when released to the Wrecking Contractor, will be in the same condition as when this proposal submitted, o and the Owner or his agents agrees to pay to the Wrecking Contractor the prevailing market price for any.materials or salvage taken from the premises by the Owner or others in the interveing time. (7) The Wrecking Contractor shall not be held liable for the adequacy or responsibility of an of the Architect's or Owner's plans, specifications or designs for sharing, bracing, temporary construction, such as canopies and bridges, or the stability of any parts of buildings, party -aulls, adjoining buildings, or parts thereof, which are to be 0 ' left standing; nor does this proposal include any of the Fv. work an[ess specifically mentioned herein. (8) This proposal is submitted under the assumption that the plans and specifications are compleie (unless otherwise noted), and no work is to be included that is not specifically mentioned. Any extra work which the Wrecking Contractor is requested to perform shall be paid for as extra work, and will be done only on the written direction of the Owner or Architect or their agents. (9) If the building or structures are dismantled according to contract. but are found to be in violation of legal requirements or property rights of others, the Owner shall defend the Contractor against any suit or action brought against him for such violation, and shall pay all fines, damages and assessments levied against the Wrecking Contractor as a result of such suit or action. (10) In the event the said buildings or structures are damaged or destroyed prior to the date of the commencement of wrecking, then the Wrecking Contractor shall have the option to rescind this proposal or agreement, and the Owner agrees to such rescission. •LU Unless the tontr*f for this . work gtatej.a definite . pet 4ferh* 66nds and peiraltj for ar;y _iOecificgl time of length *6f time 1bf cornpittiod.- the 'Contractor shaft not be held liable or be required -to pay, any dinciont as liquidated.: damages 'fcir*"delay in complcticn,-.imd fKvntr`&haI1waive all. �claim for -damage. against *said- Coritfactor• for W'failtut to complete the work in a given time. (12) This instrument shall contain all of the terms and conditicins under which the work is to be done and shall not be altered or modified except for an additional written instrument newly signed by both parties. (13) This proposal, if -not accepted under the conditions herein stated, and within ten days from date hereof, ceases thereafter, subject to the option of the Wrecking Contractor, to be an offer for acceptance. ACCEPTED ................................................ 19 ....... ..................................................................... (Owner-Agent-Architect-Contractor) By: ............................................ I .................. 5C Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: June 2, 1995 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Frank's Used Cars Property At the May 11, 1995 meeting, the HRA authorized staff to execute a purchase agreement subject to the following terms: 1. A purchase price not to exceed $145,000. 2. Waiving relocation benefits. 3. No separate payment for fixtures. 4 -. The GAbrelcik estate -will take responsibility for. environmental* clean -up. 5. Approval from the HRA Chairperson. Subsequent to the HRA action,-.the property :owner and the Executive Director agreed to a purchase price -of $150,000., The Executive Director contacted the - Chairperson about the purchase price, and it was decided that the item should be brought before the HRA for final action. Recommendation Staff recommends that the HRA authorize the purchase of the Frank's Used Cars property at a price of $150,000. Possession is to occur later this Summer to allow progress on the environmental clean -up issues. BD /dw M =95 -317* J Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: June 2, 1995 6 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Request from Northco to Support TIF Assistance for Storm Sewer and Soil Correction Dennis Zylla, Project Manager for the Northco Business Park, has prepared an extensive analysis of the cost to develop the lot immediately south of 73rd Avenue in the Northco Business Park. Zylla is requesting support from the City to provide tax increment assistance for soil correction and possible relocation of a storm sewer which bisects the site. Northco has prepared a site plan for a 99,528 square foot office/ warehouse building. We are currently researching with Northco as to how many tenants or users are anticipated to occupy the building. Zylla estimates that approximately $125,000 - $150,000 in real, estate taxes would be generated. Jim Casserly is,* s,-also evaluating options for a tax increment- district-far the property. Recent changes in the 1994'- 1995 legislature may create advantages for the HRA to create a district. A defined cost has been identified for relocation of the storm sewer ($44,000); however, we are currently trying to identify a concrete figure on the cost of soil correction. Although no action is needed by the HRA at this time, we wanted to have the HRA be made aware of Northco -*s research and staff would like to continue to explore options with Northco for development of the property. BD /dw M =95. =320 = _ 7 . A v MAY- 1,6 1995 C NO HO REAL ESTATE SERVICES May 15, 1995 - Mr. Bill Burns City Manager City of Fridley Fridley Municipal Center 6431 University Avenue N.E. Fridley, MN 55432 Dear Bill, In recent months the Fridley Business Center Partnership, which owns the land in the Northco Business Park, has received several inquiries from users and potential purchasers for space and land within the Northco Business Park. We have spoken with brokers, and directly with owners of companies, including several from Fridley, that are looking for space to lease or property to purchase. . Recognizing a shift in the market, we had our architect prepare, and have enclosed, a site plan which uses the vacant property along 73rd Avenue N, immediately east of the proposed liquor store. Our site plan responds _to the. market for 24 foot clear height: multifunctional space. Concurrently, we had our engineer develop a civil plan that addresses the retention requirements of the Rice Creek Watershed District, which is reflected on our site plan. Since the Northco Business Park plat was filed, the retention requirements of the Watershed District have increased substantially, diminishing the amount of land that is now available for development. The Partnership's primary interest is to facilitate development of the remaining property within the Northco Business Park We are open to either selling the land or would develop a building for sale or for lease, the latter assuming we could attract tenants with strong enough credit to allow us to finance the project. Unfortunately, we have several site constraints which are making it difficult for us to achieve the rental rate that we need to successfully market the building and site. 1. A storm sewer that now runs north and south through the center of our site and through the proposed building. This storm sewer would need to be relocated to the west from Northco Drive north along the property line between the Home Center building and our land. See Sunde Engineering cost estimate. 7A SUITE 110, 1201 MARQUETTE AVENUE, MINNEAPOLIS, MN 55403 612 332 2212 a 612 332 8909 FAX to .. . LJ ` s Mr. Bill Burns May 15, 1995 Page Two 2. The soil conditions on our property are poor and require significant exportation and importation of material. See attached geotechnical logs. 3. Because of the proposed finished floor elevation, we have additional costs for retaining walls along the southeasterly corner of the site. 4. Due to the new requirements of the Watershed District, we now must provide extensive retention ponds. So, we not only lose usable property but incur a significant amount of expense in excavation, etc. See Kraus Anderson letter of May 1, 1995. We have talked with City officials for the past four years about the likelihood of receiving some form of economic assistance to develop this land. We have never submitted a formal request because we have never had a serious candidate for the site other than Steinwall, Inc. which has since left the community. We looked at our final costs for the Willamette-building, a 1990 project. This project was for a 24 foot clear building of 99,684 square feet on 6.10 acres. Our site clearing, excavation and backfill cost. for Willamette was $146,541 compared to an estimate of $541,000 per the Kraus Anderson letter. - This cost excludes the storm sewer relocation. . The purpose of this letter is to solicit the support of the staff and the City Council in providing economic development assistance for relocation of the storm sewer and soil correction. While we are not in a tax increment district, we are in a redevelopment area and qualify for this assistance in view of the existing conditions of the property. We believe our request is consistent with what the legislature intended with adopting the tax increment law. I would like the opportunity to meet with you and further explore obtaining staff support for our request for City assistance. We think a building developed per our site plan would produce between $125,000 and $150,000 per year in real estate taxes so the payback is great for the City. Mr. Bill Burns May 15, 1995 Page Three Bill, you will note from our concept plan that we intend to develop a very attractive, precast paneled facility that is set back 100 feet from our lot line, in accordance with our approved development contract. The site would be nicely landscaped, and we would avoid having an extensive amount of turning movements onto or from 73rd Avenue, except at Northco Drive. This should minimize adverse traffic conditions. Thank you. Sincerely, Denniil7ylla Manager Project Development Enclosure 7C 'e V .. a '�'�. 7� ........... 3 f" <_ ti+ r AOL UL .nit S. < ): Y � r �tiy,{E t -ni �`'..l•)Ay++ ten- ;.yr to iV y i t i t ) Yr[[�,�� yy��r? � Y�... •..,tom �,�/I' Ct) _ �y Y1 3tlx t S tr�,iEr f thl�'�hSi� ar rl x�.y F y„ �C.. ,�y�t ♦. A _. �t r ��j ��y ) rf 1 1 / L � 02-03 -1995 01 :54PM FROM Sunde Engineering, Inc. TO SUNDE ENGINEERING, 9001 East Bloomington Freeway Bloomington, Minnesota 55420 Telephone No. (612) 881 -3344 Fax No. (612) 881 -1913 FAX TRANSMITTAL FORM DATE: NO. OF PAGES: (including this page) ur {:r Ell; 10-9 2 101 I N C. TO: WOIt-TM Co W.O. NUMBER: $S" 2fi (Company/Firm) ATTENTION: MIz.. D iro oij S 7ZYL44 FAX NUMBER:_ 332. -_8g05 TELEPHONE: 332-17-11 WE ARE SENDING THE FOLLOWING ITEMS: COPIES DATE NO. DESCRIPTION �- V2 7/q PQ,irt, I M F I�JA �.'i GDS i SST I M A TE REMARKS: . 4 _002THCD i I9•�1 1�7F_5S PA�_I�� emT To P.4LOCA M wi or-m saweit. Opp (w 4-rrAC.l�F� U"-IL IATE2,5Aa- MEW CuLes RECOUIR.E ft-AD sToXA6C VOC WAME QVnL113 A911 WVC ST0C466 FOIL t?.ATR. CbAJTIWL -. Foz Tile %. 8 W-ce r s lre , mouI Eb OrAD ST0006£ = 1.22 AC-Fr AND ftoul"D frvIE sT "" = 1.5 9C -Fr. TAIs Couv riLrS ro A Mob. a-Sivfu 'Atr. : $kCA- ' -bF- OP.' D .5.. 10 . SIGNED: COPY TO: 7Ej TOTAL P.01 A 7F W.O. 088 -289 �: tesoa. 1127195 ENGINEERING COST ESTIMATS • EGTiM ATW UNIT [Tom UNIT QUANTITY COST AMOUNT IA1 storm Sewer. 24' Rd' $wm Savmr ti 700 $30.50 421,3150.00 SEomm $*wet Manhole Bach 2 $1.90000 43.800.00 Conneatto Eeindng Manhole each 2 4800600 $1.000.00 Remve g storm 8swer' Mlanhol� each 2 a3M00 $700.00 Remove Eaiatin9 storm Sewer 1 LF 700 $7.00 Kow 00 Subtotal (A) a $31.75000 Mobilisation (3.8%) _ $1.14300 COaftencies (5%) m $1,587.50 . TOW Cones. Cost — 450.480.50 • Observa*n (7%)'- 42.413.@4 En� Legal, and AdnUmetive (20%) m 48.898.10. Total — $43,790.24 7F FD z uv .0-4 cN rn zc Om Z in A Z MOM X 40 .... ...... 4A -4 V z fn o 0 0 -C 7 M Ut %CL= 01 In r m F o --os m -01 n rN M A Ws f r a CAM a 0 ........ ... 12- DIP W. x ID 48" RCP ST S.— 0 CD tA °z" —6m GAS- In 2 73 RD AVE. W 7G =to 0 .. ........ �;E 0 M N M cm -1 AN f U.G. ELEC. FD z uv .0-4 cN rn zc Om Z .... ...... fn o 0 0 -C 7 M Ut %CL= 01 In r m F o --os m -01 n rN M A Ws f r a CAM a 0 ........ ... 0 44 0.1< 0 0 _B ID 0=0 90 9 r ca CD tA °z" mD c 2 W 7G =to 0 .. ........ �;E 0 M N M cm -1 tl .... .... ... ..... . ....... ................ ........ .. FD z uv .0-4 cN rn zc Om Z FA N O. 0 rn SP C: M m K m z -1 I cli v gn _G CAw_im_ r z OWN fn o 0 0 -C 7 M Ut %CL= 01 In r m F o --os m -01 n rN M A FA N O. 0 rn SP C: M m K m z -1 I cli v gn _G CAw_im_ r z OWN fn o 0 0 -C 7 M :0:0 %CL= 01 o --os -01 n Ws f r a CAM a 0 0 44 0.1< 0 0 _B ID 0=0 90 9 r ca CD tA 0 -ft —CPO go mD c *1 7G =to 0 �;E 0 M N M cm -1 FA N O. 0 rn SP C: M m K m z -1 I cli v gn _G CAw_im_ r z OWN -ju 73RD AVENUE JV.E. r,-a3 #2-a3 + +1 67 j4-a3 twin C-ItY testinq 711 ci3rDoracon U cs.,.. W~-tee U6W • 857.8' or► Brack muck (frosen to It' then 2S' moist) 1� Light brcvn fine sand (moss;) 8 with a f.w lenses of loamy sand 5. -_ Water_ Brownish gray to gray fire sand 10 Level (war erbearinr) Dooms wo. 2 -67 OoaarN .......... os►► 2' 3' 10 ! 8� 9 Illy' Cray silty clay loam (rather 13' soft Gray clay loam (soft) with a 6 little gravel and a few lenses cf loamy sand (waterbearing) and* sandy* loam 4. 16' Gray fine to medium sand '(vats bearing) with a little gravel And -few hansp.8 Of 18 .' • .Gray sandy loam (wet).with a little gravel and a few lenses of sand above 21' (waterbearing 26 27' Pots: 'hater level at: at coaple.tion +aih' 19kof eisitig in the ground. Water level at 5' hour later with casing removed and I day later. Indicates thin wall Lb-r. a amp le 7 11 1A 14l . 18' 27' I• innt fl Black organic silty clay loan (soft) e note 41 Brown and light brownish gray mottled silty loam (wet) Gray silty loam (wet) Gray silty clay loan (stiff) with lenses of silty loan Gray clay-(stiff) see note 1) Craq clay loam (rather stiff) with a little gravel Gray sandy clay. loan (zither stiff to very stiff) with a little gravel lfipte.. 2 :. (awist} with. a fe,v_ lenses of @ilty clay loam Mote 02: with a lane of sandy loam at 144' Note: No water in boring at completi-n with 20' of casing In the ground or with casing removed. Water level at 9j' 1 day later. Indicates thin wall tube 9 le 71 "� 3 7 E 14 t� 14 _eft_ Level 13 14 13 IC 17 26 i LOO D TEfT 1 Q Joe W, 120 -8857 VJiJJE cT ,— pDAp/� VERTICAL iCAU j.. + 4 , _IL.Jl _ 80aJM(. MO � 14-82 ['Eon•. JON pJ: MATERIAL CESCRIPT _ Jti FEET j-SURFACE EIEVATIQry 865.01 GEOtoGJc `."r.�,E twh04�• OAJG•ti Jp..� •.T L Y ine gra ne w c t %c: TYPI w I t o_ ND, 1 moist, ver ac v loose (SM) TOPSOIL SAND, fine grained, brown to 2 1 SB of light brown, moist to 1 oi J COARSE then waterbearing, loos ALLUVIUP* i to medium dense (Sp_�) 6 2 ISR lI r D , i ne . q ra i ne , gray, erbearinq, medium dense ens of clay at about - (SP) 16 RIM End. of Boring 1)1 131SR 111 14158 10 5 SB 11 n6 ISR VAT" Lem tTAw._ g -9 -82 cou�►J1�1 �_0. w.� ,..e sAJ+.tJto GJe.h... oen» aim 0111,.» �•nto oennJs W#&T" HSA 0 -14 ` M 1241 1cLt 'Mp'W 4111111111111111M 1-77 - . 1773 5B0 VAT" Lem tTAw._ g -9 -82 cou�►J1�1 �_0. w.� ,..e sAJ+.tJto GJe.h... oen» aim 0111,.» �•nto oennJs W#&T" HSA 0 -14 ` M 1241 1cLt 'Mp'W 4111111111111111M 1-77 - . 1773 ' LOG OF TEST BORING JDe vl 120 -8957 p+ciE�• PRDPOtFO f1tR�pppS_MMI FY vEATe� SCALE 1" AIMESDIA 4' boaloK•'+_ _ 1542 DEp'M DESCRWT*k Os MATEA�&L IM -- -- ----�- — rEi+ VSUAYACE ElfvATION 865. J' ISAW, GEOLOGIC ORIGIN S"PLf twH7"A'CW. TF '*'IS wt NO *,pf W D , t of G� fine grained, dark brown, SB 2 moist, very loose (SP -SM) COARSE ? ]2' SB SAND, fine grained, brown, ALLUVIUM moist, loose -(SP-S") I 7 3 SB 5 SAND, fine grained, lioht brown, moist to 1%, then 12 4 SB waterbearing, medium dense to dense to very loose (SP) 16 5 SB 11 6 SS i 14 3 7 SB SAND, fine qrained, gray, waterbearinq, very loose to loose, a lens of clay at 3 8 SB about 21' (SP) 21 8. '9 I 58 . End of Boring #1 - dark brown, moist, very loose (SM -SP) ��TSw ura l�slrTS 9 -9 -R2 eo...ti•DATE Tr( D uW'~" a•*w 10, •oD NSA 0 -19 ' gil- 10111- 1 ' WI hiiii rt ".. ,w teew e LOG Gr TEST d 120 -8857 WfAT.cAE SCALE 1 K p ~ - -- _ _ �Tn M1NNf�nTA PRMSED _ -- - -CUB_�Qf�u;_F .0ES-A,VTIOM OF WATERIA: SAMV.E LA1''�a••'�_�i STS ~ S.109 ACE ELEVATION 866.4 OR6GIN N Wl NO TTOE W E. V I y bAN:j. tine cralned.fSeetil(SM-S; 2 1 SB SAND, fine grained, dark brown, ALLUVIUM 7- SB - moist, very loose (SP -SM) 2 SAND, fine grained, brown, 4 3 SB moist, very loose (SP-SM) 4 SAND, fine grained, light brown and brown, egoist. g 4 SB medium dense to very loose, a few layers of silty sand g 5 SB 4 6 SB 1 12 S grained, gray. 5 waterearna, loose SP - 8 SR _ 135 , gray. FINE few lenses of fat clay a ALLUVIUM silt {CL) 6 9 SB R ln. SB 24 CLAYEY SAND, a little gravel, gray. TILL medium, a few lenses of water- 5 11 SB bearing sand (SC) 2C3s End of Boring 1 - dark brown, moist. very loose (S" SO ..mE LSVn W&AUMMwn ...,. 9 -9 -82 co,.•,T•• 9 -9 -R2 - Wl u MTfA W/Oa�M AEM� Trt p,nw� 100.. MEt.00 - #Q. 9-9 9:20 4• i ~ F-1. • w w • IA - M 9t1_. esW%rha _ ui _ t • -- ,w teew e 1 i (ML -CL)' g 3T ZE a e grave gray, medium to stiff (SC). 26 End of Boring TILL 5 ! t101 SB gee *4,n __ 120 -8857 VERTU SCALE Ito a a • Boa Oki- �. 17 -82 p.:[ PR(SPOC� r1IR F nc -F DEo -- 1% DESCRIPTION OW ruTEwut 860.5' GEOtOGK 12 -- S��ro.[ l t�.f•:��•Oa.TES': wr° ap"M"s .i.c. w74,00 NSA 0-24N' ti0 '•o[ w G i t O� ,LIT rSURFACE ELEVATION ORIGIN N VOL .. of A ac _6 1A.1A 9K. rather stiff (SC -OL) SWAMP* 9 1 SB 112 ORGANIC SILTY SAND, black, moist, COARSE medium dense (SP) ALLUVIUM 2 SB 3 13 3 SB SAND, fine grained, brown, moist, medium dense (SP -SM) 5 6 d SB SAND, fine grained, brown to grayish brown, moist to 6' then waterbearing, loose to very loose to loose (SP) 4 5 SB 5 6 SB SILTY CLAY, gray, medium, FI4E 7 7 SB P few lenses of silt (CL) ALLUVIUM 15 CLAYEY SILT, gray, medium, 8 8 SB a few lenses of fat clay i (ML -CL)' g 3T ZE a e grave gray, medium to stiff (SC). 26 End of Boring TILL 5 ! t101 SB 't A � I 11 3T 21 0o...«n 9 -9-82 12 SB 't A � I rn.r YT A WAM LM& 9 -9 -R2 0o...«n 9 -9-82 °"I TOW ot...o.° l a: M wr° ap"M"s .i.c. w74,00 NSA 0-24N' L--.5.5 i -9 0 .. _6 1A.1A 9K. rn.r YT A 15 IO SS I . 21. q . . End of Bori nq � ,.. i,iG OF UST 80 RING _e. F 120 -8857 VERTICAL WALE lot 4 9 soR.wc. No 19 -82 ' 5- RIDLEY, MINNESOTA - E C l.. DESCZhPTipN Of WATtw,AL S�vo:f Lsf,MA•QR. TESTS GEOLOGIC , �tE. i�SUAFACE ELEVATION 858.7 OR�Gar % w. NC TYPE w D L- Or . f 9 -9 -82 9 -9 -R2 TEAT,--b-Tack, moist SWAMP s o..E ...E an »° .. »�', wt°a.T«s u,'ra� DEPOSITS 1 I SB 2 r 2 SS �. 3 3 SR r„ SAND, fine grained, light COARSE brown to grayish brown. moist ALLUVIUM to 51S' then waterbearing.. very loose (SP -SM) 4 4 SB 3 - -- ti 9 c SAND. ne grained, gray, waterbearing, loose (SP) 7 S SB s.._ 1�s CLAY. gray, medlum, FINE 6 SB a few lenses of silt and ALLUVIUM fat clay (CL) 6 7 SB • r R SB I SAS 6 9 SB CLAYEY SAND, a little gravel, TILL . gray, medium to rather stiff (SC) .. t i . 15 IO SS I . 21. q . . End of Bori nq � e 1 7M t 9 -9 -82 9 -9 -R2 VATER LML MEASUMN Ef n sTIU.. oo.ruTa aK.»o° NSA 0 -1915' II :OS s o..E ...E an »° .. »�', wt°a.T«s u,'ra� r 1: r„ e 1 7M LOG OF TEST BORING J08 PROJECT NO 4220 89-417 VERTICAL PROPOS SCALE 1 �f — 4 1 BORING NO 8-R > b PARK FR DLEY MINN SOTA " DEPTH IN FEET DESCRIPTION OF MATERIAL SURFACE ELEVATION 860- O' GEOLOGIC SAMPLE LABORATORY TESTS NO TYPE w D L PL- ORIGIN N WL hNu 1 ORGANIC CLAY, black, soft (OH) TOPSOIL OR* 1 NO SB 2 3 2 SB NO SILTY SAND, fine (See #1) (SM) COARSE SAND W /SILT, fine grained, grayish ALLUVIUM brown to brown, moist, very loose 4 3 SB ND (SP -SM) 52 r 4 4 SB 4 IV SILT, gray, wet, loose (ML) FINE 5 SB 1 ALLUVIUM 6 6 SB 1 92 LEAN CLAY, gray, (See #Z) (CL) 7 SB 1 102 8 8 SB ND L , brownish gray, wet, very 12 loose (ML) SILTY CLAY, gray, medium (CL -ML) 13 9 SB ND LEAN NTY a r 132 5 1 SB 25 ND SILTY CLAY, gray, medium (CL -ML) 141- LEAN CLAY, gray, medium, lenses of fat clay. (CL) g 1 SB NO 19 .2{D SILT, gray, wet, very loose (ML) .13 SB p - ** .201 3. 14 15 SB SB ND NO CLAYEY- SAND W/A LITTLE GRAVEL, TILL gray, soft to rather stiff (SC) 26 15 16 SB ND End of Boring *SWAMP #1 - grained, dark brown, moist, DEPOSITS very loose (SM) #2 - medium, lenses of fat .cla y **ALLUVIUM (CL).:... :. #3 - LITTLE. GRAVEL, fine to medium grained, -gray, waterbearing,- very loose (SP -SM) WATER LEVEL MEASUREMENTS START 12 -1 -88 COMPLETE 12 -1 -88 GATE TIME DEPTH DEPTH DEPT►I BASED DEPTHS WATER METHOD HSA 01-24j' @ 8:50 LEVEL 12 -1 2.30 61' 41' 6' to 12 -2 8:50 26' 24 1' 71-11 110 12 -2 9:00 26' None 4' to Nelson ,s 14RAUS- ANDERSON CONSTRUCTION COMPANY CONTRACTORS & CONSTRUCTION MANAGERS May 1, 1995 Mr. Dennis Zylla Northco Corporation 1201 Marquette Avenue, Suite 110 Minneapolis, Minnesota 55401 RE: Northco Business Center Soil Correction Dear Dennis, As requested, we have prepared a preliminary budget to perform items 1 - 4, below, for the above referenced project. 1. Remove poor soil. 2.' Import clean fill. 3. Build on site retention ponds. 4. ' Build a 5-foot retaining wall. This work is . in accord�Liice with the plan sheet dated 2/27/89 as prepared by Sunde Engineering and soils reports completed by Twin City Testing, dated from 1967 to 1988. Because. the . actual: on -site ;conditions are not accurately identified ,on the drawings referenced- above, 'we cannot give you a firm quote, however; bur preliminary estimate is a realistic cost with the amount of information given to date. We recommend a budget of $541,000 for the work as included above. this cost includes an allowance of $19,500 for a Keystone retaining wall along the southeast corner. Please call me with any questions and /or comments you may have. Very truly yours, KRAUS- ANDERSON CONS T UCTION COMPANY Paul Carlsted Project Manager PC /ca Minna ision 525 South 8th Street, i eapolis, MN 55404 Phone: (612) 332 -7281 FAX: (612) 332 -8739 Enual Onnnounity FrnnInver F 11A_ sun Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: June 2, 1995 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Update on Housing Replacement Legislation Jim Casserly is pleased to report that our bill authorizing a pilot.housing replacement :program passed the legislature.-as part of-* the Omnibus Tax:Bill and is awaiting signature by the. Governor. If signed into law, the bill would allow the HRA to create individual housing replacement districts (i.e., site specific) and collect the incremental taxes generated by the new home. The program would essentially allow the HRA to re -coup a portion of the costs associated with the acquisition and removal of blighted, abandoned or vacant homes. Both the HRA and City Council would need to authorize the program and establish the districts before the taxes could be collected. Jim Casserly is in the process of putting together a packet of information which will be presented at the July HRA meeting. GF/ M -95 -311