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HRA 01/11/1996 - 6294HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, JANUARY 11, 1996 7:30 P.M. PUBLIC COPY R HRA RESOLUTION NO. 1 - 1996 RESOLUTION AUTHORIZING AN INCREASE IN COMPENSATION FOR FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY EMPLOYEES FOR THE 1996 CALENDAR YEAR WHEREAS, it is the intention of the Fridley Housing and Redevelopment Authority (HRA) to provide fair and equitable compensation to Employees within budgetary constraints; and WHEREAS, the Fridley HRA intends to comply with the Minnesota Local Government Pay Equity Act; and WHEREAS, Staff of the City of Fridley have reviewed the HRA's financial position as well as economic indicators and compensation adjustments by comparable employers; and WHEREAS, an adjustment of employee salaries and benefits is warranted. NOW, THEREFORE, BE IT RESOLVED by the Fridley Housing and Redevelopment Authority that the following adjustments be authorized for employees of the Fridley HRA, with the exception of employees who are members of a bargaining unit, effective January 1, 1996: 1. A general increase of 2.0 percent in employee salaries. 2. Mileage reimbursement at the rate of $.30 per mile. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS 11TH DAY OF JANUARY, 1996. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR HRA RESOLUTION NO. 2 - 1996 RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY AND INDUSTRIAL EQUITIES, LLP. BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority ") as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority enter into a Contract for Private Redevelopment (the "Contract ") with Industrial Equities, LLP (the "Redeveloper "). Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted a development program known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program ") pursuant to Minnesota Statutes, Section 469.001 et. sea. Section 3. Authorization for Execution and Delivery. 3.01. The Chairman and the Executive Director of the Authority are hereby authorized to execute and deliver the Contract when the following condition is met: Substantial conformance of a Contract to the Contract presented to the Authority as of this date. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS 11TH DAY OF JANUARY, 1996. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR e R CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, JANUARY 11, 1996 7:30 P.M. LOCATION: Council Chambers, Fridley Municipal Center CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: November 9, 1995 CONSENT AGENDA: Hyde Park Housing Program Update . . . . . . . . . . . . Housing Program Update . . . . . . . . . . . . . . . . . Southwest Quadrant Budget Update . . . . . . . . . . . . Proposed 1996 Meeting Dates . . . . . . . . . . . . . . Revenue and Expenses Resolution Authorizing Pay Increase for HRA . . Employees ' Establish Public Hearing for Sale of Vacant . . Lots at 5981 - 3rd Street and 683 Glencoe Street N.E. for February 8, 1996 Approval of Plans and Development Agreements . . . . with Dianne Schommer, Oliver Tam, and Whitney Homes Resolution Authorizing Execution of . . . . Development Contract; Industrial Investors L.L.P., John Allen 1 2 - 2A 3 4 5 - 5F 6 - 6A 7 - 7C 8 - 8FF 9 - 9H Approval of Contract with Casserly Law . . . . . . . . 10 - 10C Office Consider Application for 1996 Minnesota . . . . . . . . .11 - 11G Cities Participation Program A u Housing & Redevelopment Authority Meeting January 11, 1996 Page 2 ACTION ITEMS: Consider Appointment of HRA Remodeling . . . . . . . . .12 - 12C Counselor Consider Contract with Center for Energy . . . . . . . .13 - 13C and the Environment for Administration of City -Wide Housing Programs and Application for Funding with MHFA INFORMATION ITEMS: Lake Pointe Update . . . . . . . . . . . . . . . . . . . 14 - 14K Southwest Quadrant Update . . . . . . . . . . . . . . . .15 - 15C Proposed Revision to Housing Mortgage . . . . . . . . . .16 - 16B Assistance Program Draft 1996 Budget . . . . . . . . . . . . . . . . . . . 17 - 17R OTHER BUSINESS: ADJOURNMENT CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING NOVEMBER 9, 1995 CALL TO ORDER: Chairperson Commers called the November 9, 1995, Housing and Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, Jim McFarland, John Meyer, Duane Prairie Members Absent: None Others Present: William Burns, Executive Director Barbara Dacy, Community Development Director Jim Hoeft, HRA Attorney Jim Casserly, Financial Consultant Rick Pribyl, Finance Director Grant Fernelius, Housing Coordinator Craig Ellestad, Accountant David Zuk, 122 - 102nd Avenue Carl Zuk, 281 Rice Creek Terrace Dave Ristamaki, 18225 Deerwood Lane, Wyoming, Minnesota Oliver Tam, 1160 Fireside Drive Brad Dunham, Whitney Homes Diane Schommer, 543 Janesville Street APPROVAL OF SEPTEMBER 14, 1995. HOUSING AND REDEVELOPMENT AUTHORITY MEETING: MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the September 14, 1995, Housing and Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA: 1. CONSIDER APPROVAL OF CONTRACT FOR PREPARATION OF TRAFFIC NOISE, AND AIR STUDY, AND PREPARATION OF INDIRECT SOURCE PERMIT APPLICATION 2. CONSIDER APPROVAL OF CONTRACT WITH LARKIN HOFFMAN DALY & LINDGREN, LTD., FOR IMPLEMENTATION SERVICES FOR LAKE POINTE ENVIRONMENTAL PERMITS 5 � L E HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 2 3. CONSIDER RESOLUTION PLEDGING INCREMENTS FOR THE SERIES 1995A BOND ISSUE 4. HYDE PARK HOUSING PROGRAM UPDATE 5. HOUSING PROGRAM UPDATE 6. HOUSING REPLACEMENT PLAN AND SCATTER -SITE PROGRAM UPDATE 7. SOUTHWEST QUADRANT BUDGET UPDATE 8. REVENUE AND EXPENSES Mr. Ellestad distributed copies of additional expenses for approval. These additional expenses reflect the pay off of the three -year temporary bonds issued in 1992. These bonds are maturing in December. Mr. Hoeft stated the 1995A bonds are the same type of bond. This is a three -year issue and would have the opportunity for early call and reissue. Mr. Commers asked what expenses are associated with the issuance of these bonds. Mr. Ellestad stated the total allowable expenses budgeted is approximately $10,000. Mr. Commers asked if there was any payment or principal reduction on the original issuance. Mr. Ellestad stated no, there was only interest. This will be only interest also. MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the consent agenda as presented. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS• 9. CONDUCT PUBLIC HEARING REGARDING SALE OF PORTION OF 533 JANESVILLE STREET N.E.. AND APPROVE RESOLUTION AUTHORIZING THE SALE THEREOF MOTION by Ms. Schnabel, seconded by Mr. Meyer, to open the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPEN AT 7:35 P.M. HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9. 1995 PAGE 3 Mr. Fernelius stated the area in question is approximately 1,375 square feet of the parcel located at 533 Janesville Street. One parcel measuring approximately 20 feet x 50 feet would be conveyed to Mr. John Olson at 538 Kimball Street, and another parcel measuring approximately 15 feet x 25 feet would be conveyed to Mr. John Koehler at 528 Kimball Street. Both parties have indicated an interest to pay the HRA $875.00 ($0.60 per square foot) plus any survey and legal costs involved in the transaction. Mr. Fernelius stated the sale was subject to approval of a Lot Split by the City Council. The Planning Commission approved the Lot Split on October 18, and the request will be considered by the City Council at their next meeting. If approved by the City Council, the sale can proceed. Ms. Schnabel asked if there were any easements through these parcels. Mr. Fernelius stated no. No one was present from the public to comment on this item. MOTION by Ms. Schnabel, seconded by Mr. Prairie, to close the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED AND THE PIIBLIC HEARING CLOSED AT 7:39 P.M. Mr. Commers stated, since there are no objections or comments, he would recommend approval of the request. MOTION by Mr. Prairie, seconded by Ms. Schnabel, to approve a Resolution to Approve the Sale of a Portion of the Property at 533 Janesville Street N.E. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 10. CONDUCT PIIBLIC HEARING REGARDING SALE OF SIX LOTS, LOCATED AT 5720_POLK STREET. 5973 - 3RD STREET, 5981 - 3RD STREET 5924 -2ND STREET. 533 JANESVILLE STREET AND 623 LAFAYETTE STREET, AND APPROVE RESOLUTION APPROVING THE SALE THEREOF MOTION by Ms. Schnabel, seconded by Mr. Meyer, to open the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED AND THE PIIBLIC HEARING OPEN AT 7:42 P.M. HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 4 Mr. Fernelius stated six sites were advertised for sale under the scattered -site program. Staff advertised for bids in the Twin Cities Builders Association and also placed signs on the lots. From that, staff received approximately 30 inquiries. Staff has received offers on the lots, as follows: 5720 Polk Street - Four offers were received. The high bidder is Whitney Homes with a bid of $20,000. 5924 - 2nd Street - Three offers were received. The high bidder is Tam's Inc. with a bid of $12,000. 533 Janesville Street - Five offers were received. The high bidder is Diane Schommer with a bid of $19,500. 5973 - 3rd Street - Three offers were received. The high bidder is Tam's Inc. with a bid of $6,000. 5981 - 3rd Street - Three offers were received. There was a tie in the bidding with Tam's Inc. and Whitney Homes both bidding $4,000. 623 Lafayette Street - Three offers were received. The high bidder is Tam's Inc. with a bid of $18,500. Mr. Fernelius stated, at this point, the high bidders will need to execute a sale and development agreement with the HRA within 45 days or December 24, 1995; and provide proof of a letter of credit. The HRA would then approve the sale and development agreements either in December or January. After the agreements are approved, each bidder would then need to submit their house plans and site plans for the HRA to review and approve. The bidders then must finalize their construction schedule and close on the actual sale of the lots in order to have title to the property. They would then proceed to get the building permits and any other approvals required. Work can then begin with the understanding that the work is to be completed by June 30, 1996. Mr. Fernelius stated staff's recommendation is to award the sale of the properties to the high bidders subject to each bidder agreeing to a sale and development agreement with the HRA by December 24, 1995. Staff also recommends the HRA reject the offers received for 5981 - 3rd Street and that this property be rebid with a deadline of December 1, 1995. Mr. Commers asked the location of this lot. Mr. Fernelius stated both the 3rd Street properties are located near the slip -off ramp from University onto 3rd Street. The lots back up to University Avenue. This is a high traffic area and there are several multi - family properties in that area. There is HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 5 a concern on the part of the bidders that the house values may not be very high. The bids reflect this concern. Mr. Meyer stated the HRA has had experience with Whitney Homes. He asked Mr. Fernelius what staff knew about the other high bidders. Mr. Fernelius stated he had done some checking. Mr. Tam is the owner of Tam's Rice Bowl in Fridley. He has built a number of homes, one of which was local. He has submitted some drawings of the potential house plans that he would offer to prospective buyers. He is licensed by the State of Minnesota as a building contractor, and he has provided a list of his materials providers and subcontractors. He is in the process of obtaining a letter of credit from Northeast State Bank. He should be getting approval on that in the next few weeks. If the award is made tonight, he will have 45 days to provide that letter of credit and firm up the house plans to be submitted for approval. Mr. Fernelius stated Ms. Schommer is working with Four Diamond Builders based in Coon Rapids. They have built 15 homes in the two years they have been in business in the $90,000 to $145,000 price range in the northern suburbs. They are a licensed building contractor. According to the City's building official, they have a good reputation. Staff believes all bidders who have submitted bids are responsible bidders. Mr. Meyer asked if, in the case of Ms. Schommer, they were dealing with an individual or a company. Mr. Fernelius stated they were dealing with an individual in terms of a development agreement. The builder will be providing a letter of credit on Ms. Schommer's behalf. She has a building contractor set up who would like to proceed. The builder has submitted plans for a split entry home that he would like the HRA to approve so they can get the building permit and start construction this fall. Mr. Meyer asked why the builder was not the bidder rather than the individual. Mr. Fernelius stated this was not set up as a requirement. The bids were open to anyone who could meet the requirements. The biggest requirement was a letter of credit. Whether the individual or builder provides that letter of credit, the HRA has the security it needs and Ms. Schommer has met the requirements in that regard. Mr. Prairie asked if both names could be put on the agreement. L HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 6 Mr. Hoeft stated they could but Ms. Schommer will be the only party that is liable. The builder may want to be included on those documents because he will be the one putting out the cash. Mr. Commers stated he presumed Ms. Schommer would live on the property. She has a builder to build her home. He did not see that as being unusual. Mr. Meyer asked, if we are giving a builder property to build a home, why enter into an agreement with an individual. Mr. Hoeft stated the homeowner is buying the lot. Mr. McFarland stated the HRA is protected by the letter of credit and the mortgage. The HRA has ample collateral. Mr. Hoeft stated the bidder must meet all the requirements. Mr. Meyer asked why staff recommended the property at 5981 - 3rd Street not be sold. Mr. Fernelius stated this was done to get a higher price and to resolve the issue of who will actually get the lot. Mr. Meyer stated there is also the option of selecting another bidder than the high bidder. If we wish to award the lot to Habitat for Humanity for $1.00, do we have the option of doing that? Mr. Fernelius stated the guidelines adopted by the HRA indicates the bids would be awarded to the highest, most responsible bidder. Mr. Hoeft stated, because we have determined through staff's investigation that the two bidders who tied for high bid are responsible, we cannot just kick them out and award the bid to someone else. We have the opportunity to reject the bids in this case because there is a tie and then the HRA could make a policy decision that, instead of putting this property on the floor, they want to donate the property or sell the property for $1.00 to Habitat to Humanity. He did not feel the HRA could do that at this point because that is not how the bids were presented. Mr. Meyer stated, if we have determined a lot is not highly esteemed by the bidders and there is a possibility for Habitat for Humanity coming in and building a house, he would be interested in considering something like that. Mr. Hoeft stated this has done that a number of times in Columbia Heights where they have a number of new houses under the same type of development contract. They have had some success there. HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 7 Mr. Commers asked for comments from the public. Mr. Dunham stated Whitney Homes has the financing approved at the same bank so they do not need the 45 days with respect to their bid on 5981 - 3rd Street. They have a letter of credit for all the lots for which they have bid. He felt Whitney Homes had done a good job on those lots they have done. He provided pictures of the homes built on these lots. He would like to suggest they get the second lot. Mr. Commers stated he was not sure that would make-a difference in terms of the criteria. They have had good experience dealing with Whitney Homes. Mr. Dunham stated he makes the case that Whitney Homes is responsible and ready. They have all the licenses, the letter of credit, and would not need the 45 days. Mr. Prairie stated the rebid date is December 1, which is relatively soon. Mr. Hoeft stated, with regard to the responsibility factor, staff has made its investigation. On that information, we have made a determination that Tam and Whitney are responsible bidders. While he understands Whitney Homes' position, Whitney must remember they were in the same position as Tam's in the last round of bids because we had no experience with them either. Whitney proved to work out well, and the City had success in dealing with them. We do have criteria that allows Tam's Inc. to provide the financing and security in 45 days. If they did not do that and because the award is contingent, the HRA would not then have to rebid these properties but could move down to the next highest responsible bidder. At that point, they could award the bid to Whitney. Because Tam's Inc. in a responsible bidder, we have to allow them to meet the 45 day requirements. If they do not perform, then we have a history to use for any other lots that come up subsequently. Mr. Commers asked if there were any other lots available through the scattered -site program. Mr. Fernelius stated one lot is now available. The goal for next year is to have the same number as this year. Through the housing replacement program, they can do up to ten lots per year. Mr. Tam stated his family has been in Fridley for 23 years and operates a restaurant here. They have been operating the restaurant all that time. That shows they are just as responsible as any others in the community. He appreciated all the help and assistance from the City over the years. I HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 8 Ms. Schommer stated she made the bid herself. The lot is next door to her mother's house. She has been pre- approved. She has checked the builder. She has given Mr. Fernelius the plans. The house plan that she picked is already built in Elk River, if anyone would like to look at it. She has all the financing and every is set to go. They plan to close on February 29, if everything goes well. She did not know what else she would need. There were no additional comments from the public. MOTION by Ms. Schnabel, seconded by Mr. Prairie, to close the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 8:03 P.M. Mr. Commers stated staff's recommendation was included in the agenda packet. He asked to make a recommendation to award the lots to the five highest bidders and to withdraw the lot at 5981 - 3rd Street from consideration of the award. Mr. Fernelius distributed a revised resolution which reflects the this information. MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve a Resolution Authorizing of Sale of Real Property. Mr. Meyer stated he assumed the omission of 5981 - 3rd Street becomes a mute point and that this does not need to be mentioned in the resolution. Mr. Prairie asked if they needed to move to rebid this property by a certain date. Mr. Fernelius stated this could be done by a separate motion. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Ms. Schnabel, seconded by Mr. Prairie, to authorize the rebidding of the property located at 5981 - 3rd Street with the bids to be submitted by December 1, 1995. Mr. Meyer asked if there was any interest in assigning this lot to Habitat for Humanity. Mr. Prairie felt this would have to be done before the property was open for bids. Ms. Dacy stated that a Councilmember had suggested the same idea. Staff concluded that, for the purpose of this process, it would HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 9 be best to continue the process as outlined and to rebid the property. However, if the HRA wants to identify some of the lots in the scattered -site program for low to moderate income housing program and assign the property to Habitat for Humanity, that is within the HRA's purview. Habitat for Humanity has completed two homes in the City. The first building constructed is in need-of maintenance. The second home is newer. Because we have gone so far in this process, staff recommends to continue as outlined. In the future, it is certainly an option. As a word of caution with the housing replacement program, staff wants to include those in the replacement program in order to get the property back on the tax rolls. Lots for Habitat for Humanity would not be tax exempt. She felt a policy statement should be developed. There are costs involved with acquisition and demolition. Mr. Prairie asked, if the HRA were to do this next year, would you want to identify a parcel before bidding. Ms. Dacy stated yes. Mr. Commers stated, if the property were sold through that program, the taxes would not be affected. Ms. Dacy stated this was correct. Habitat for Humanity indicated to Mr. Fernelius when they made their proposal that they would need at least one year to construct a home in order to put together the volunteer effort. If the City wants to pursue that, perhaps they could find a neighborhood to sponsor a lot and some of the work. This is an opportunity for neighborhood involvement. Staff has not, at this point, had time to put a policy together. Mr. Commers asked if there was any lot criteria required. Mr. Hoeft stated there are currently two properties in Columbia Heights under contract. Habitat for Humanity wants a one -year contract for one property and a two -year contract for the other. They were interested in two other lots but there were some soil concerns so they did reject those two lots. Mr. Meyer stated the HRA was not out nearly as much money on a $4,000 lot as they would be next year on a $15,000 or $20,000 lot. If there is any interest in giving a less expensive lot to Habitat for Humanity, the HRA would not lose as much money. Ms. Schnabel stated they must also consider the cost to acquire the lot and for demolition. This has nothing to do with what the bid is worth. Mr. Meyer stated the HRA goes through similar expenses on all the lots. If the lot is given to Habitat, there would not be extra HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 10 costs incurred. Mr. Commers stated he felt, in this instance, they were too far into the process to do this. Ms. Dacy stated staff's reason for not recommending that as part of this process is that we have responsible bidders ahead of Habitat. Mr. Hoeft stated in this case there is not a problem because of the tie bid so it does provide an opportunity to make a policy decision before rebidding. He agrees they may be too far into the process. From a policy standpoint and from his experience with Habitat, it may be better to approach them now with regard to some lots we may have available in the spring or summer because we can then have things up and running with them. They sometimes require two years to get something on the lot. The HRA must decide if they want property to sit empty for a period of time or do they want to work with Habitat to get something in place. Mr. Meyer stated he would assume that, if they made a bid, they are ready to go. They may still want two years. Are we saying we would preclude any interest in Habitat operation because it may be one or two years? Regarding the statement that we are too far into the process, we are rejecting bids and want rebids by December 1. It is rather odd for us to claim we are too far down the process to reverse our tracks. He brings it up for discussion. It seems that this is an ideal time and an ideal lot to do something for Habitat. Ms. Dacy stated she did not disagree, but there is a policy issue that the HRA and City Council needs to establish. In meeting with Hyde Park residents, staff has told residents this would be a part of the scattered -site program and that market rate housing would be constructed. Staff has made some assurances to the neighborhood. Staff continues to recommend that the lot be rebid and that staff be directed to establish a policy for the future. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 11. CONSIDER RESOLUTION MODIFYING THE REDEVELOPMENT PLAN AND CREATING TAX INCREMENT FINANCING DISTRICT NO. 14 Ms. Dacy stated the property is south of 73rd Avenue. The tract is two lots consisting of approximately 6 acres. The frontage road to the west is the University Avenue service road and 73rd is to the north. Mr. John Allen of Industrial Equities is proposing a 87,600 square foot, one -story building which would span from -west to east across the property with loading docks to HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 11 the south. The visitor and employee parking would be to the north side of the building. Ms. Dacy stated this project has been discussed previously. Mr. Casserly met with Mr. Dennis Zylla, who manages Northco Business Partnership. Soil tests have found soil problems throughout the site. Because of these soil problems, they will have to excavate a significant amount of soil from the site and replace it. The most recent figures indicate that up to 27,000 yards of fill would be imported into the site. Mr. Casserly had worked on a soil correction assistance package for 8% to 10% of the project costs which would be approximately $280,000 to $350,000. The assistance would be split with 50% a grant and 50% a loan. In order to provide the assistance, an economic development district is proposed. The site is in a project area. If the HRA extends the life of the district, it would go to the year 2006. The City and the HRA could choose to terminate the district early or 2001 when the grant is recouped. Ms. Dacy stated staff recommends the HRA approve the proposed resolution authorizing modification to the project area and to create a tax increment financing district. Mr. Commers asked what the allocation was between the funds. Is the movement of the storm sewer included in this? Ms. Dacy stated yes, that is included. A storm sewer bisects the site. Northco installed the storm sewer when the property was originally platted anticipating two buildings. The storm sewers would be rerouted so the water goes into a pond toward the south of the site, through a pipe to another pond to the north, and then into the storm sewer system. Rice Creek Watershed District prefers the proposed plan because it takes water through ponds for treatment. The soil correction costs are approximately $350,000 and the storm sewer costs are approximately $40,000. Mr. Prairie asked if there was another TIF district close to this site. Ms. Dacy stated yes. The the site proposed for the an office development but #10. Mr. Commers stated the decision as to the life of full term and then reduce HRA created a TIF district in 1989 on liquor store. Northco was looking at did not proceed. That is TIF district HRA does not at this time have to make a the district. Can the HRA make it the amount of time in the future? Mr. Casserly stated yes. TIF districts are usually set up for the maximum duration. . HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 12 Mr. Commers asked for a cash flow analysis. Mr. Casserly stated page 11M of the agenda packet shows the cash flow analysis. On the estimated tax increment, there is $0.5 million on this project. He would recommend the HRA keep about 20% of the increment for program expenses which leaves available increment of $420,000 for project expenses. They need to work out the details of the development agreement which would come back to the HRA in December. After working out the details of the development agreement, he thought the level of assistance would be approximately $300,000. One -half would be a loan and one -half a grant. The loan would be repaid over a period of time. Generally, the first two years accrue interest but defer it, add it to the principal, and amortize the principal over eight years. The project would be fully constructed in 1996 and fully assessed in 1997. They would pay full taxes in 1998. Mr. Casserly stated they would have nine tax increment years. Because of the nature of the district, the last year or two generates hardly any tax increment. This is very much like the project the HRA was doing eight to ten years ago. MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve a Resolution Modifying the Redevelopment Plan for Redevelopment Project No. 1 and the Tax Increment Financing Nos. 1, 2, 3, 6, 7, 9, 10, 11, 12 and 13 to Reflect Increased Project Costs Within Redevelopment Project No. 1, and Creating Tax Increment Financing District No. 14 and Adopting a Tax Increment Financing Plan Relating Thereto. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONKERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 12. CONSIDER RESOLUTION TO APPROVE CONTRACT FOR EXCLUSIVE NEGOTIATIONS WITH MEPC Mr. Commers stated the HRA reviewed a draft of this contract earlier. He asked Ms. Casserly to review the changes that had been made. Mr. Casserly stated there are only a few changes. They have tried to establish some market values. They have been talking about an office tract and a smaller commercial tract. This agreement tries to lay the groundwork for MEPC to promote and develop the site and to try to continue with the HRA's original concept that it would help with parking treatments if they got the right kind of density. This agreement recognizes that the first building that goes in, particularly on the office tract, is probably going to have surface parking. The next building that goes in must have some type of structured parking and will probably have to share the structured parking with the first HOUSING S REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 13 building. In order to get the first building going in the office tract, they want to encourage MEPC to be as aggressive as they can. We set the parameters that it must be a minimum of three stories. We have had a lot of discussion about this. They are looking to move as quickly as they can but not to build structured parking until the first building goes in. They would sell the site for the first building and then put that.purchase price in reserve to put those funds back into the property to help with the structured parking. Mr. Casserly stated the rest of the agreement talks about setting the time frame for such things as developing focus groups, marketing plans, reports back, etc. Mr. Casserly stated one other issue that came up which they stressed is that, on the commercial tract, MEPC feels strongly they need to develop a substantial portion of the commercial tract to provide the amenities to get the kinds of office development they want for the office tract. If the commercial tract is developed first, it is with the office tract in mind and in support of a high quality office development. Mr. Prairie asked for an example of the type of amenities that would be provided. Mr. Casserly stated MEPC had mentioned a banking facility, restaurant, the potential of have a day care facility, and /or the potential of a hotel and lodging facility. Mr. Prairie thought this would be a short, select list. Mr. Casserly stated the amenities would not be retail, but rather service oriented activities. They want to develop focus groups where they invite people in, talk about the development they would like to see, and what kind of amenities are needed to maximize the development. MEPC then would develop a master plan for the site. This will be back before the HRA numerous times. Mr. Casserly stated, at this point, it is important to get MEPC going. They have a willingness to provide support. We do have them on a pretty good time frame. It takes some time to put these things together. From what he has seen, we appear to be in a good development mode these days. There does seem to an increasing need for space and,-hopefully, we will be able to take advantage of the low interest rates and the increased need. The goal is to get a first office building under construction by July 1, 1997. If they cannot start by that date, we can get time added on to that. The idea is to have the plans and programs put together next year. HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9. 1995 PAGE 14_ Mr. Prairie stated the HRA's original time frame and MEPC's time frame were different. Does this agreement reflect a time frame that is somewhere in between these? Mr. Casserly stated yes. MEPC was looking for two full years. We were looking for a maximum of 1.5 years. We ended up with 1.5 years with an ability to extend it for 90 days if they have signed agreements, etc. Ms. Schnabel stated page 12I stated the agreement shall terminate if a redevelopment contract is not executed by July 1, 1997. Is that this contract? Mr. Casserly stated no. This is a preliminary agreement. We need to enter into a more formal, extensive agreement with them. This agreement protects them and lays out some of the broad terms on how we want the site developed and what they need to do. We will need an extensive redevelopment contract but it is premature to do that at this point. Ms. Schnabel stated this agreement says the construction needs to start on the same day as the termination of the contract. That seems tight. Mr. Casserly stated the construction date could be moved forward. He left that in there because this will be negotiated as we go along. He sees a contract in place by the end of next year. If things are not going well, he would not want to take the time to work through a contract if they are not making progress. Mr. Commers stated he understands there is a write down of the land with them assuming responsibility for structured parking. We have to define the amount of structured parking. Mr. Casserly stated this was correct. Parking will be a part of the redevelopment agreement. Mr. Casserly stated he is concerned that there is an open ended commitment by the HRA for the infrastructure. Mr. Casserly stated the HRA has the ultimate approval over that. We have to agree to the master plan. If the master plan that we agree to has some reconfiguration of load or utilities, we have to take that into account. The only reason we would want to change is for a better plan. It is open ended, but we have control over that. .Mr. Meyer asked Mr. Casserly to define Class A office space. Mr. Casserly stated this is difficult to define. HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 15 Mr. Meyer stated the agreement has something defined as Class A office space but no definition of what Class A is. The building can be up to three stories or 50,000 square feet. That is a small building. This is also saying they can forget the office space for some indefinite time and put up commercial. These things worry him. Once the first office building is constructed and there may be some commercial, the commercial that is put in is dependent on a viable office space already in. The statement that they need the commercial in first does not ring true to him. You do not put in a bank or day care center or restaurant, etc., on empty land. You wait until there are people there. If they were to do this, what is our risk? Mr. Prairie stated the commercial would bother him more than the Class A part because we are going to have a chance to look at what goes in there. However, having commercial before the office seems backward. Mr. Commers stated they could end up with something on the commercial tract that is marginal and nothing on the office tract. Mr. Meyer stated the commercial could also attract something less than Class A. Mr. Casserly stated in the original design we could not develop commercial until a certain percentage of the office tract had been developed or under contract. Of-the-items; negotiated, that was the one MEPC felt the strongest about. It seemed to him you would not want to do the commercial tract until you saw the type of office development. MEPC said it was probably just the opposite. The way they can attract high quality tenants is if they are developing simultaneously parts of the commercial tract so the facilities will be available. MEPC is saying that has. been their experience. Mr. Casserly stated they need to sort through the process. There is a master plan in process. The HRA has a tremendous amount of control over what goes in there. Ms. Dacy stated, in the S -2 district, the HRA and City Council must approve any use. If MEPC wanted a day care center first, they would have to do a plat and other issues, and come back here to get HRA approval. The HRA determines if the use is consistent with the goals of the redevelopment plan. The issue of what comes first will be discussed. Mr. Meyer asked,'if the HRA has a veto, what is the sense of this document. HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 16 Mr. Casserly stated this document protects them. They will be spending money out -of- pocket plus their time. This document is a loose agreement. We could spend more time defining and working through issues. We are still not exactly sure we can accomplish what we want to see on the site. The process being suggested in this document is what has to evolve over the next six months and how we are going to accomplish these things. There is a process where the HRA is to do a complete review on or about July 1, 1996. Mr. Prairie stated this is fine as long as this does not mislead MEPC as to what our intentions are. Mr. Commers asked if a• statement could be added to Section 2.2.(E) to the effect that this is subject to discussion and mutual agreement of the HRA. Mr. Casserly stated a statement could be more specific and state this is "subject to individual approval by the HRA." Mr. Meyer expressed concerns that this would still give the developer the right to first develop the commercial amenities before having the office use. Mr. Commers stated that is why he recommended modifying the paragraph giving MEPC the authority to develop the commercial tract but making it clear to let them know that we retain very specific project -by- project veto power without having to base it on some kind of reasonable standards. If we do not like it, we should be able to say no even though in other respects it may be appropriate. Ms. Schnabel asked if they wanted to say the commercial could not be developed until they have provided some number of tenants for an office building. Mr. Commers stated that is the issue. MEPC states they need some commercial to get the office. Ms. Schnabel stated she understood they wanted to do the commercial and office simultaneously. Mr. Commers suggested that, once MEPC gets a certain number of square feet released such as 50,000 square feet, the HRA would then release a specified amount of commercial. Is that too complicated? Mr. Casserly stated he did not know how many uses could be made on the site. He thought MEPC was saying they want the best commercial amenities to attract the best kind of office user. If that is left to the HRA's discretion, then I think the HRA would HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 17 be reasonably secure. There will be a consensus between MEPC and the HRA about the amenities promoted. He could put in language to be sure this is at your discretion and control. Mr. Burns suggested the language, "While the office tract is a priority, the HRA will consider commercial development that the developer feels is essential for attracting users of office space." Mr. Prairie stated he did not think having a first class hotel on the site would be a problem. A hotel could function on its own. He was not sure about a restaurant. After that, the issue gets more unclear. MEPC might want to market what they have up front. He could not see a day care center going in first. Mr. Burns stated he was also concerned. He was not sure of the City Council and public's reaction to developing a restaurant before an office development. Mr. Meyer thought Mr. Burns suggestion was good. If we are going to go to a restaurant, are we going to do something by itself on 40 acres where there may be an office? That is not the sort of thing that would attract an office. Mr. Commers asked Mr. Casserly to discuss this with MEPC and see where it leads and then come back. Mr. Casserly asked, because of time, would it be possible for representatives of the HRA to review the language with the understanding that there will be subsequent language that addresses this concern. He would like to revise the document and have it signed in the next few days. Mr. Burns stated he would like to get started. He suggested staff amend the document or the HRA give staff some flexibility where the HRA can agree to everything else but this particular section and give Mr. Casserly, Mr. Commers, and him permission to work out the specific language prior to signing the document. Mr. Meyer asked if anyone is concerned about a 50,000 square foot, three -story building that is defined as loosely as Class A. Mr. Burns stated we went into the process in the very beginning and established these criteria: That is what we told MEPC we wanted as a minimum. If we start changing that now, he thought they would be guilty of reneging on their terms. Mr. Commers agreed that 50,000 square feet is not a large building. Usually these buildings have a 25,000 or 40,000 square foot footprint. HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 18 Ms. Schnabel asked if Mr. Meyer was not comfortable with the controls the HRA has. Mr. Meyer stated he was not comfortable in the sense that the commercial can go first. There should be no allowance that the commercial go first. The office should come first and then the commercial. Mr. Burns made the point which gives the HRA authority to negotiate. He thought they should take a stand that the commercial cannot go first. Mr. Burns stated they can try that and he thought that was reasonable. Mr. Meyer stated, regarding the 50,000 square feet, the HRA did have a commitment to MEPC last March so that is acceptable. Mr. Commers suggested that Mr. Casserly or Mr. Burns talk to MEPC and see what the best is that they can do. At that point, call each HRA member and take a vote over the phone as to whether the HRA can support it. If the HRA does support, he will sign the contract before the next meeting. While everyone is well intentioned about what will happen, we also want to be careful. Mr. Burns asked the HRA to approve the agreement as it stands with the exception of Section 2.2.(E) which would be amended and a poll of the members be taken. MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve a Resolution Authorizing Execution and Delivery of a Contract for Executive Negotiations By and Between the Housing and Redevelopment Authority In and For the City of Fridley and MEPC American Properties, Inc., subject to renegotiation of Section 2.2.(E) and approval of the language by the Housing and Redevelopment Authority. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Ms. Dacy provided an example of a brochure and advertisement for the Lake Pointe site. INFORMATION ITEMS• 13. SOUTHWEST QUADRANT UPDATE Ms. Dacy stated the City Council has attempted to talk about the senior condominium component on several occasions but were unable to reach a consensus. Since that meeting, the City Council has been unable to discuss this item for a variety of reasons. Staff will try to discuss this issue with the City Council within the next ten days. She will provide an update at the next meeting. HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 19 Ms. Schnabel stated she had attended the Council meeting where the senior housing component was discussed. Initially, four Councilmembers wanted to keep the condominiums and one was in favor of doing something else. When the meeting was over, this had changed to two Councilmembers who still wanted to keep the condominiums as proposed and three who were willing to consider something else. Mr. Burns stated part of what makes this difficult is that the Councilmembers are waiting for the property condemnation process to end and to be more certain of the numbers. Staff also needs to develop other alternatives to the senior housing issue. Ms. Schnabel stated two Councilmembers had been approached by a number of senior citizens who wanted to have housing, so the Council feels they have made a commitment despite the fact that the dollar amount has changed. They talked about other senior housing in the City but the Council felt this was a good location. Mr. Commers stated he had read the article included in the agenda packet and asked what it was they were saying. Ms. Dacy stated they are trying to say that Rottlund is working with a senior housing developer on a project in Minnetonka. What the author does not understand is the Minnetonka project is for rental apartments for seniors. In Fridley, we are talking about owner occupied. Ms. Dacy was also not sure if the author was referring to the empty nest housing when talking about costs. Mr. Commers stated he interpreted the article as saying Rottlund can build 115 senior housing units in Minnetonka but they cannot do so in Fridley unless we subsidize the project. Ms. Dacy stated the development they are talking about is rental. The $115,000 mentioned in the article might be applying to the proposed townhomes. Mr. Commers asked staff to call the development representative and see what they are talking about for this project. Mr. Commers stated he understands that, if they get the Cherrywood Apartments for the same per unit costs as the Keefe award, we will have to add another $250,000 to our budget rather than what we have been concerned about. Ms. Dacy stated this is correct. The Keefe award was not as high as originally thought. They are appealing on the Suh condemnation. HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 20 14. FRANK'S USED CAR SITE Mr. Burns stated the HRA authorized at the June meeting the purchase of the Frank's Used Car site. At that time, staff did not anticipate purchasing the two lots south of the estate. If we would acquire those two lots to the south of Frank's and the additional two adjacent residential lots, perhaps they could create a residential development in this area. This would total 2.4 acres for possible development. He would like to see a townhouse development. Ms. Dacy would like to see single family . homes and /or senior housing. He made some preliminary contacts with the owners of these properties. He talked with the representatives of the Gabrelcik estate and negotiated a price for the two additional properties. Mr. Burns stated an addendum was added to the purchase agreement that would require the heirs to take care of the environmental issues including capping a well, removing fuel tanks, cleaning up the ground around the tanks, removing fluorescent lights and ballasts, and removing asbestos, if any. They have capped the well, removed fluorescent lighting and ballasts, removed the tanks and cleaned the soil. Mr. Burns understands the heirs are about to get a closure letter. The only thing holding this up is the MPCA has concerns about whether the soil has been disposed of properly. Mr. Burns stated, in negotiating with the Gabrelcik's for the two additional lots, he agreed the City could take responsibility for asbestos removal out of the purchase agreement. The attorney for the family came back with a second addendum in response. There is no disagreement in principle, but there is some disagreement over the language in the second addendum. Mr. Burns asked the HRA to approve the purchase of the Frank's Used Car site and the two additional vacant lots for $165,000 with the understanding that, before closing on the property, we will have a closure statement and assuming they can work out the language included in the second addendum. Mr. Commers asked if the dispute was over the economics. Mr. Burns stated no. The dispute is in the interpretation of the language. If they get a closure statement from the MPCA, it should be all right. Mr. McFarland asked if they would be assuming liability for any lingering pollution. HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 21 Mr. Burns stated that is something the attorney would have to clarify. Mr. McFarland stated, in his experience, they had been given a closure statement from the MPCA but it said that, if ground were ever broken, it would have to be re- examined and any pollution found, if any, would have to be cleaned up before construction could begin. He also did not know if the petrol fund transfers from owner to owner. Mr. Commers stated, if we get a contingent closure letter, that opens it up again when starting construction. Mr. Prairie stated this would be at the top of the list of the things for the attorney to consider. Mr. Burns stated the document stated the seller is responsible for capping the existing well, removal of any tanks on the property, removal of all contaminated soil, removal of all fluorescent light bulbs and ballast, removal of all groundwater contamination, and asbestos if any. The seller is to obtain the appropriate documentation as to the completion of these items. Our attorney felt this covers it, but we did waive the asbestos portion. It is possible that, in the future, someone could open the ground and find more pollution after we had acquired the property. We would then be responsible. He thought they were eligible to apply for petrol funds in that instance. Mr. Casserly stated this was correct. As long as it is eligible to be reimbursed by the petrol fund, it does not matter who is the owner. A governmental agency may get a larger reimbursement than the private section. Mr. Meyer stated, if we find pollution at a later time, we are still liable. Mr. McFarland stated, if the petrol fund transfers, the liability is only 10 %. He was told the petrol fund does not go along with it. It is possible it will transfer after it has been determined. Mr. Burns stated, in either case, we are not trying to protect ourselves from this type of event. We are saying the family needs to clean up what is there and demonstrate this has been done through a closure statement. We are not trying to claim indemnification from future contamination. If the HRA wants that, this will need to be negotiated. Mr. Casserly stated, under the current law, the prior owners and everyone who had contributed to the problem are all liable. If the HRA purchases a site that has pollution on it and the HRA HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9. 1995 PAGE 22 does not worsen it, the HRA is not liable. The problem is that you have a site you cannot do anything with. An HRA does not take on the same liability as other purchasers would take on, but you would have a site you could not use. Mr. Casserly stated, regarding the petrol fund, if there is contamination and it is cleaned up to the degree required in the work plan, there is nothing more one can do. If you find contamination subsequent to closure, that is no different than any purchaser trying to develop a site. Mr. McFarland stated, if you have access to the petrol fund, this fund will make the cost manageable. If the fund will follow to the new owner, it will protect to 90% of the costs. Mr. Casserly stated the only issue becomes whether the contamination is eligible. If it is, it would be reimbursed. Mr. Burns stated the Gabrelcik's have done the clean up. The clean up has been approved. The only issue is the approval of the disposal of the soil removed from the site. The family expects to receive the letter in a few days. The family would like to close on or before December 1. Mr. Commers asked Mr. Burns to ask the attorney to tell us that, if something happens when ground is broken, we have the petrol fund. Mr. Burns stated he had discussed this with Liesch and Associates, and he thought Mr. Davis had said we were protected by the petrol fund as long as it was a petroleum contamination. Mr. Commers stated, if the MPCA letter is contingent, it creates other issues. Mr. Burns stated he will not sign if anything other than a non- contingent letter is received. MOTION by Mr. Meyer, seconded by Mr. Prairie, to authorize the Executive Director to enter into a purchase agreement for $165,000 for the Frank's Used Car site and two adjacent vacant lots, contingent upon receipt of a satisfactory closure letter from the MPCA. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 15. J. R. AUTO SITE Ms. Dacy stated the owner of JR's Auto on University Avenue contacted her regarding the sale of this property. Mr. Schuur, HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9. 1995 PAGE 23 the owner, contacted her to determine if the HRA was interested in evaluating the purchase of the property. Mr. Schuur was aware that the HRA had looked at the property earlier as part of a redevelopment plan. Ms. Dacy asked the HRA for permission to further investigate the possible acquisition and to discuss other items such as a Phase I audit. Ms. Dacy stated there are four parcels available. The building is in poor condition. The property may be eligible for tax increment financing. Perhaps staff should investigate this if the HRA would like to use this property in conjunction with the Frank's Used Car site. Perhaps staff could check into this further and come back at the next meetings. Mr. Commers asked what issue would arise if, for example, the HRA would take out a duplex or a residential-home. Ms. Dacy stated staff would need to update the housing plan. The City Council recently elected to participate in the Livable Communities Act, which means we are adopting principles that support a balanced housing supply. We have to submit an action plan by June 30, 1996, and initiate and adopt a fair housing ordinance. Mr. Commers asked, if a duplex was taken out, would they have to replace that housing. Ms. Dacy stated there is no state law requirement, but the attorney is saying to adopt a plan as to how you do provide affordable housing. Mr. Hoeft stated the City of Columbia Heights is looking to establish criteria for a certain percentage of affordable housing so that there is not necessarily replacement housing as long as you do not fall below a certain percentage of affordable housing. Ms. Schnabel asked what was located next to the duplex going east. Ms. Dacy stated there is an apartment building, vacant land, and then single family homes. Mr. Commers asked staff to continue to talking with Mr. Schuur. Mr. Commers stated the HRA has many thing going on requiring up front cash. He would like to see a periodic cash flow statement and asked Mr. Pribyl to provide that information. ADJOURNMENT: HOUSING & REDEVELOPMENT AUTHORITY MTG., NOVEMBER 9, 1995 PAGE 24 MOTION by Ms. Schnabel, seconded by Mr. Meyer, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE NOVEMBER 9, 1995, HOUSING AND REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 10:05 P.M. 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Thursday: ♦ January 11th ♦ February 8th ♦ March 14th ♦ April 11th ♦ May 9th ♦ June 13th ♦ July 11th ♦ August 8th ♦ September 12th ♦ October 10th ♦ November 14th ♦ December 12th 41 TO: FRIDLEY H.R.A FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES NOVEMBER 1995 ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES ADMINISTRATIVE OVERHEAD COMPUTER OVERHEAD (For Micro 8 Mini computers) TOTAL ADMINISTRATIVE BILLING: OPERATING EXPENSES: US WEST — TELEPHONE SERVICE STAR TRIBUNE — AD REMODEL COUNSELOR 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 TOTAL OPERATING EXPENSES: 262 -0000 -219 -1001 262 -0000- 219 -1100 262 -0000 -219 -1200 TOTAL BENEFITS EXPENSES 13.48 236 - 0000 - 336 -3000 540.00 236- 0000 - 336 -3000 553.48 0.00 236 -0000- 219 -1001 0.00 236 -0000- 219 -1100 0.00 236 -0000- 219 -1200 0.00 TOTAL EXPENDITURES — NOVEMBER 19951589': Fde : U 23DATAWRA %TIF195BILL.wk1 Dulls 5 r N O . 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OICrUOd'fAmJ01C SNO M W > pLLW►.�zzz•- •N��Q�F« p2JZLLtSa..+am WU- 1Za.W mm 4c N Im 1 / � 1 I 2 in P . 1 ....0O000p J 2 1 I \ 10A N i f p. ERE tq(1� 1pA� 1q�...IQ1� �p1� p, 1p�� tQ��1 tp�. 1QA. da i ]LW PPPPPPPPPPPPPPPPPO�O .PPPPPPPPPPO�PP � •J•P . -•- e- r- r -r-r -r i-- J 1 SO 1 �O "O .O 10 .OtZ00 P O.- .- a- C31CD4 C5 .0�•OO�OOOOO��t�Cf ��- R� -- �-- ��"NNMf00000000 O O W 1 I \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Or OC Or I I ` r- �� "'�'- �'- ��"'r•�"'f��NNNNNNNN N N NN N N N N N NNN N•tl ddLL 1 I l- - e- r- ��e- r��- �e -- rte• - - re-. -- •-e-- -r-r -- -- 5C TO: FRIDLEY H.R.A FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES DECEMBER 1995 — 12th Month Account #'s for HRA's Use ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES ADMINISTRATIVE OVERHEAD COMPUTER OVERHEAD (For Micro & Mini computers) TOTAL ADMINISTRATIVE BILLING: 460- 0000 -430 -4107 OPERATING EXPENSES: POSTAGE BY PHONE 262- 0000 - 430 -4332 POSTAGE BY PHONE 460 - 0000- 430 -4332 US WEST — TELEPHONE SERVICE 460 - 0000 - 430 -43312 CITY OF FRIDLEY — COPIER ALLOCATION (Jan —Oct) 460 -0000- 430 -4335 AMERICAN EXPRESS — LUNCH 460- 0000 - 430 -4337 BENEFITS EXPENSES: CITY OF FRIDLEY — HEALTH INS CITY OF FRIDLEY — DENTAL INS CITY OF FRIDLEY — LIFE INS TOTAL OPERATING EXPENSES 262 -0000 -219 -1001 262 -0000- 219 -1100 262 -0000 -219 -1200 TOTAL BENEFITS EXPENSES: TOTAL EXPENDITURES — DECEMBER 1995 Fde : \123DATA\HRA \TIF\9581LL.wM Detslls 5D 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 15.429.50 33.86 236- 0000 - 336 -3000 19.13 236- 0000 -336 -3000 13.54 236 - 0000 - 336 -3000 504.97 236 - 0000 - 336 -3000 30.42 236- 0000 - 336 -3000 601.92 182.40 236 -0000- 219 -1001. 20.53 236 -0000 -219 -1100 3.50 236 -0000- 219 -1200 206.43 � M r 41 . 1 O 1 1 O O O O C7 W O I O Q to O I a x I i I O O z O . 0. >- IOA O O ce o w V1 o •O I O W CC �Cn I I M r 1 M 1 CA 41 1 41 r ate- . 2 i O S S I N 6 � H I a_ W d W I I I � I I V L 1 W L L O ce a I-- O 1 z I to W I 0 0. t C O C I J H I L. ? .N. m 0 4% W J 1 O . 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W CO J -1 t.I JJ p 1 U , W Z p204. WCOd'U >OCOC •-• I N I W.4 dx QQ9.+J U Y i MEMORANDUM Arm ® Municipal Center ® 6431 University Avenue Northeast Fridley, Minnesota 55432 CmrOF (612) 572 -3507 HUDLEY FAX: (612) 571 -1287 William C_ Hunt Assistant to the City Manager Memo to: Barbara Dacy, Director of Community Development From: William C. Hunt, Assistant to the City Manager A #' Subject: Resolution Authorizing Pay Increase for HRA Employees Date:- December 5, 1995 Since the HRA is a distinct entity it will be necessary for its board to authorize salary increases for employees. I have adapted the resolution we used for the Fridley City Council to apply to the needs of the HRA. In order to provide salary increases effective January 1, 1996 it will be necessary for the HRA to take action on this matter at its meeting of December 14, 1995. I recommend that you present this matter for action at the above mentioned meeting. If I can be of any further assistance let me know. WCH/jb V RESOLUTION NO. HRA -1995 A RESOLUTION AUTHORIZING AN INCREASE IN COMPENSATION FOR FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY EMPLOYEES FOR THE 1996 CALENDAR YEAR WHEREAS, it is the intention of the Fridley Housing and Redevelopment Authority (HRA) to provide fair and equitable compensation to Employees within budgetary constraints; and WHEREAS, the Fridley HRA intends to comply with the Minnesota Local Government Pay Equity Act; and WHEREAS, Staff of the City of Fridley have reviewed the HRA's financial position as well as economic indicators and compensation adjustments by comparable employers; and WHEREAS, an adjustment of employee salaries and benefits is warranted; NOW, THEREFORE, BE IT RESOLVED by the Fridley Housing and Redevelopment Authority that the following adjustments be authorized for employees of the Fridley HRA, with the exception of employees who are members of a bargaining unit, effective January 1, 1996: 1. A general increase of 2.0 percent in employee salaries. 2. Mileage reimbursement at the rate of $0.30 per mile. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS DAY OF , 1995. WILLIAM J. NEE - MAYOR WILLIAM A. CHAMPA - CITY CLERK a° 0 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY DATE: TO: FROM: SUBJECT: 5981 - 3rd Street NE City of Fridley January 5, 1996 William Bums, Executive Director of HRA Barbara Dacy, Community Development Director Grant Femelius, Housing Coordinator . Establish Public Hearing for Sale of Vacant Lots at 5981 - 3rd Street and 683 Glencoe Street for February 8, 1996 At the November HRA meeting two bids were received for this lot. Both bidders submitted identical $4,000 offers and in response the HRA rejected both bids and requested new bids. Bids were due on December 1, 1995 and the same parties submitted offers which are shown below. Bidder Offer Security Tams, Inc. $5,100 $500 Cashier's Check Whitney Homes $5,050 $500 Bank Money Order Although the bids are less than the lot at 5973 - 3rd Street NE , staff feels that the bid is acceptable given the location, surrounding market values, and the risk involved. 683 Glencoe Street As you may recall, the HRA acquired this property in the fall of 1994 and subsequently tore down the existing dwelling and a garage. The lot is 50' x 110' in dimension which is too small under City Code for building a new home. The parcel is adjacent to several homes which are in fairly good condition and not suitable for acquisition. Establish Public Hearing for Sale of Vacant Lots January 5, 1996 Page 2 Over the course of the last several months staff has been evaluating options on what to do with this property since it is non - buildable. Because of its location and the configuration of adjacent parcels the only feasible option would be to sell the entire lot to the neighbor at 681 Glencoe Street. A map of the site is attached for your reference. Staff contacted a relative of the owner, Joe Paulzine, and received a positive response about buying the property. Mr. Paulzine is disabled and has limited financial resources to purchase the property, however his mother has agreed to give him the funds to buy the lot. After several conversations with Berma Paulzine she has agreed to pay $3,000 for the property. This price represents about 54 cents per square foot which is about average for what the HRA has received in the past for its non - buildable residential lots. Recommendation Award of these properties cannot be made until a public hearing has been conducted. At this time staff recommends that the HRA establish a public hearing for February 8, 1996. GF/ M -96-23 WI R A- 0 V ti.. O F- t� W. 114 C 1 SEC. 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L•yy .T ^b- J:�9!ti.,.A ;3`rzoJ1. .�a.'�'�y =:- a° 0 Community Development Department HOUSING AND REDEWLop1VmENT AUTHORITY City of Fridley DATE: January 5, 1996 TO: William Bums, Executive Director of HRA '44A FROM: Barbara Dacy, Community Development Director Grant Femelius, Housing Coordinator SUBJECT: Approval of Plans and Development Agreements with Diane Schommer, Oliver Tam, and Whitney Homes In order to proceed with the development of the five lots sold last fall, the HRA must approve separate development agreements with each buyer. In addition, the HRA has the ability to review and approve the buyer's house plans before they start construction. This provision ensures the HRA that the homes meet the minimum design guidelines of the program. A list of these guidelines is attached. Development Agreements Each buyer is required to execute a Sale and Development Agreement with the HRA. Copies of the agreements are attached.. The contracts are identical to what has been used in the past. The major provisions of the agreement will be as follows: 1. Buyer will construct a single - family home with a minimum sales price of $80,000 on or before June 30, 1996. 2. Buyer must submit house plans for HRA approval on or before February 26, 1996. 3. Buyer shall pay $500 down at time of bid for the* lot and " pay the balance owing at the time the house is completed. To ensure repayment Buyer shall sign a loan note and mortgage running in favor of the HRA. The loan will accrue interest at 5% until it is paid in full. 4. Buyer shall provide a letter of credit in the amount of $50,000 per house to be constructed. Buyer was to provide a letter of credit on or before December 24, 1995. Plans and Development Agreements Schommer, Tam, and Whitney Homes January 5, 1996 Page 2 5. In the event of default the HRA has the ability to call the loan due and payable; foreclose the mortgage; and /or draw upon the letter of credit to complete the house. House Plans Of the three buyers, Oliver Tam and Diane Schommer have prepared house plans which are ready for HRA review. Copies of their house plans are attached. Below is a brief description of the homes. House #1: 533 Janesville Street Buyer: Diane Schommer House Price: $94,800 (Lot: $19,500) House design: Modified 2 story design, 2 bedrooms, full bath, and living room on upper level; entry foyer, kitchen and eating area on main level; unfinished lower level (suitable for family room, future bedroom, den and utility room). Total square footage = 1539. Two car attached garage. Exterior Vinyl siding with brick veneer on lower half of Materials: front. Contractor. Four Diamond Builders Houses #2 - 4: 5924 - 2nd Street NE 5973 - 3rd Street NE 623 Lafayette Street NE Buyer: Oliver Tam d /b /a Tams, Inc. Proposed House Price: 5924 - 2nd Street NE (est. $95,000) 5973 - 3rd Street NE (est. $85,000) 623 Lafayette Street NE (est. 100, 000) Plans and Development Agreements Schommer, Tam, and Whitney Homes January 5, 1996 Page 3 Home Design: Split entry design, 2 bedrooms, 1 bath, kitchen /dining room, and living room on upper level; utility room and unfinished space on lower level. Total square footage = 1,951. Two car attached garage. Exterior Vinyl siding with brick. Materials: Contractor: Tams, Inc. Whitney Homes anticipates that it will have house plans ready by the January 1996 HRA meeting. Recommendation Staff recommends that the HRA approve Sale and Development Agreements for Diane Schommer, Tams, Inc. and Whitney Homes. In addition, staff also recommends that the HRA approve the house plan designs as submitted by Diane Schommer and Tams, Inc. GF/ M•.y: Design Guidelines 1. Only single - family, detached dwellings may be constructed on these sites. Structures must meet minimum square footage requirements as adopted by City Code (min. 1,020 square feet) and be constructed in compliance with all applicable state and local codes. 2. Three and four bedroom homes are desirable. As an alternative the home may have two bedrooms and sufficient space to provide -for a third bedroom. 3. Two full bathrooms are desirable, however a minimum of one full bath and a 1/2 bath (roughed -in) are also acceptable. 4. A two (2) car garage is required (attached or detached) and a hard surface driveway (either asphalt or concrete), must also be installed. 5. Low - maintenance, exterior materials (i.e. vinyl or aluminum siding) are desirable. 6. The house building lines, window placement and orientation to the street must present a balanced and pleasing view from all sides. Consideration should be given to replicating the look and style of existing Fridley homes as much as possible. Garage door dominance should be minimized. 7. The front and side yards shall be fully landscaped upon comp- letion of the project. 8. The Fridley HRA shall review and approve all building, drainage, and landscaping plans before the builder can obtain a building permit. 3 0 i. House Plan D. 3%sign j 5! 33 Janesville St. cho mer }, i�� ,� Ill�t Jill ID t&44 7�A 'VI APR: r -77 loe irvE- a Vi gQ -__ r pLIf. Ta k Ir rj 99 -�-- cts I � Sk \P �R 1 -4 �Rgc c 4119 S° I \ GL :, k\ A'IL, jq6 LP r4 ILL4— FIT L al, Q 'A r 41- -M \41 ZsMtj I 46 3 4'd 5-5 uC 8F 121 N I �• • IIJ F ts, A to IBM F ts, A to ii tzi �A H ou n 5973 31d St. Lafayet t St. 7 1 fill j;::!i T ams, Inc .11 14; till,; r.j III a 4 , I- 4-A:: ai 7Z. 81 I ly CK -Ye'� . - Z-4c Li~, 002 Av- tr c I 70�'i E3i1 a e. ... .:� ��_�a . _ _ . _ _ .. ., � ----' • fir, . ,� .L - � f jr f ' N= E3i1 a e. DRAFT 12 -14 -95 SALE & DEVELOPMENT AGREEMENT RELATING TO 5924 - 2nd Street 5973 - 3rd Street 623 Lafayette Street BY AND BETWEEN THE l FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY TAM IS, INC. U661 SALE & DEVELOPMENT AGREEMENT THIS AGREEMENT, made and entered into this day of , 199_, by and between the Fridley Housing and Redevelopment Authority, (hereinafter called the "HRA"), and Tam's, Inc. (hereinafter called the "Developer "); WITNESSETH THAT, in the joint and mutual exercise of their powers and in consideration of the mutual covenants contained herein, the parties recite and agree as follows: Section 1. Recitals. 1.01. The property. The HRA now owns the property described in the attached Exhibit "A ", (the "Property "), located in the City of Fridley, Anoka County, Minnesota. 1.02. Facilities and Project. The Developer, in accordance with HRA approval, plans to construct or cause to be constructed on the Property single family homes. The Developer shall provide the HRA with a copy of its plans and specifications showing details on the style, exterior architectural features, materials, color selections, etc. of each home to be constructed, which plans and specifications shall be submitted to the HRA for review and approval prior to the issuance of any building permits on the Property. Section 2. Sale /Purchase of Property. 2.01. Sale. The HRA agrees to sell the Property to Developer and the Developer agrees to purchase the Property from the HRA for the purchase price of $36,500.00. Developer will purchase the Property by Quit Claim Deed with a minimum down payment of $1,G0_ 00 . The balance of $'.loon. 0G will be carried on a purchase money mortgage (Exhibit B) at 5 %, which mortgage and interest will be due and payable no later than Toiw- 30, 19ci(o , at which time, if Developer is in full compliance with this agreement, Developer will be provided with Warranty Deeds and Partial Releases /Satisfaction of Mortgage. Section 3. Developer's Representations. The Developer hereby represents, warrants and covenants to the HRA that as of the date of this agreement the statements set forth in this section are true and correct. 3.01. No Disability. The Developer is a corporation, authorized to do business in the State of Minnesota. :I 3.02. - Litii knowledge of the before any court adversely affect of the Developer obligations under ration. There are no pending or, to the Developer, threatened actions or proceedings or administrative agency which will materially the financial condition, business or operation or the ability of the Developer to perform its r this Agreement. 3.03. Compliance. The Developer will comply with and duly and promptly perform all of its obligations under this Agreement and all related documents and instruments. Developer will also comply with all State and local codes /ordinances. Section 4. Developer's Undertakings. 4.01. Site Grading. Developer will be responsible for establishing and adhering to site grading plans, which plans shall be submitted to the HRA on or before ebr�xt 71p l9q(o„ The grading plans shall at a minimum specify house pe, finish grades and drainage pattern. 4.02 New Construction. Developer shall be solely responsible for the construction, marketing and sale of the single family homes on the Property by --ice 30, 11-19 0 . The minimum selling price of each home shall be $80,000.00. 4.03. Floor Plan. Developer will be responsible for submitting to the HRA, and obtaining pre- approval of the floor plans and front elevations of the homes proposed to be constructed on the Property. Said pre- approval must be obtained before the HRA will issue any building permits to Developer. 4.04. Landscaping. Developer will provide a $500.00 yard /landscaping.package included in the sale price of each home. Said package will specify, at a minimum, tree sizes /type /number, sodded yards, foundation plantings /beds, and any necessary retaining walls. 4.05. Fees and Charges. The Developer will pay, when due, all permit fees, connection charges, user charges or other charges lawfully imposed by the City with respect to the Property. Section 5. City's.Undertakings. 5.01. Existing Improvements. The City will be responsible for removing any existing structure, foundation and debris from the Property and will assure that all water and sewer services are stubbed to the boulevard at no cost to Developer. Ma Section 6. Security. 6.01. Letter of Credit. The Developer will provide the HRA with a Letter of Credit in an amount equal to the anticipated cost of the improvements to be made on the Property. The form of the Letter of Credit shall be as set forth in Exhibit C (or substantially similar as determined'in the sole discretion of the HRA). The Developer will be responsible for submitting the Letter of Credit to the HRA for approval as to form and amount, which approval must be obtained before any building permits will issue. As improvements are made to the property, the HRA agrees to negotiate with Developer certain incremental reductions in and to said Letter of Credit based upon the value of the improvements made. Section 7. Default. The failure to meet any condition of this Agreement shall be an event of default. 7.01. Remedies. If an event of default occurs and is not cured within 30 days of receiving written notice of said default, the HRA may take one or more of the following actions: a. suspend performance under this Agreement; b. terminate the Agreement, thereby rendering void any promises or approvals contained in this Agreement; c. draw upon the Letter of Credit as referenced in paragraph 6 herein; d. foreclose upon the mortgage referenced herein as provided by Minnesota law. Section 8. Notices. All notices hereunder shall be in writing and either delivered personally or mailed by certified mail, postage prepaid,. addressed to the parties at the following addresses: i. Fridley Housing and 6431 University Ave. Fridley, MN 55432 Redevelopment Authority N.E. Attention: Grant Fernelius Developer Tam's, Inc. IN WITNESS WHEREOF, the HRA has caused this Agreement to be executed by its duly authorized officers; and the Developer has executed this Agreement the day and year first above written. FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY By: William W. Burns Its: Executive Director By: Lawrence R. Commers Its: Chairperson TAM'S, INC. By Its: STATE OF MINNESOTA ) ss. COUNTY OF ANOKA ) On this day of , 199_, before me, a Notary Public within and for said County, appeared to me personally known, who, being by me duly sworn, did say that he is William W. Burns named in the foregoing instrument, the Executive Director of the Fridley Housing and Redevelopment Authority, a body politic and corporate under the laws of the State of Minnesota, and that this instrument was signed as his free act and deed. 99 Notary Public STATE OF MINNESOTA ss. COUNTY OF ANOKA On this day of 199_, before me, a Notary Public within and for said County, appeared to me personally known, who, being by me duly sworn, did say that he is Lawrence R. Commers named in the foregoing instrument,-the Chairperson of the Fridley Housing and Redevelopment Authority, a body politic and corporate under the laws of the State of Minnesota, and that this instrument was signed as his free act and deed. STATE OF MINNESOTA SS. COUNTY OF ANOKA Notary Public On this day of 199, before me, a Notary Public within and for said County, appeared to me personally known, who, being by me duly sworn, did say that he is 42i Ziy�eJ named in the foregoing instrument, the of Tam's, Inc., a corporation under the aws of the State of Minnesota, on behalf of the corporation, and that this instrument was signed as his free act and deed. f: \music \jdh \tamdevk.hra 'Iola 1f,otary ,� JUDITH M. HINTON p 80TARy PUBUc_miNNE50TA HENNEPIN COUNTY py Comm. Ewrw Jan. 916 "000 11 EXHIBIT "A" Lots 9 and 10, Block 9, all in Hyde Park according to the map or plat thereof on file and of record in the office of the Register of Deeds in and for Anoka County, Minnesota. Lots 27 and 28, Block 12, Hyde Park, Anoka County, Minnesota. Lot 26, Block C, RIVERVIEW HEIGHTS, Anoka County, Minnesota, and that part of all of the vacated Broad Avenue N.E., lying southerly of the westerly extension of the northerly line and northerly of the westerly extension of the southerly line of said Lot 26. Reserving and subject to easements for bikeway and walkway purposes in favor of the City of Fridley, over the westerly 15 feet and that part of the northerly 10 feet lying within vacated Broad Avenue thereof, and northwesterly of a line drawn from points distant 12.0 feet southerly and northeasterly of the intersection point of the interior easements lines. Also reserving and subject to an easement for access purposes in favor of the property adjacent westerly, lying southerly of a line drawn from the most southerly corner of Lot 26, Block C to a point distant 11.30 feet northerly of the intersection of the westerly extension of the southerly line of said Lot 26 with the westerly line of vacated Broad Avenue. DRAFT 12-14 -95 SALE & DEVELOPMENT AGREEMENT RELATING TO 533 Janesville Street BY AND BETWEEN THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY DIANE SCHOMMER SALE & DEVELOPMENT AGREEMENT THIS AGREEMENT, made and entered into this day of , 199_, by and between the Fridley Housing and Redevelopment Authority, (hereinafter called the "HRA"), and Diane Schommer (hereinafter called the "Developer "); WITNESSETH THAT, in the joint and mutual exercise of their powers and in consideration of the mutual covenants contained herein, the parties recite and agree as follows: Section 1. Recitals. 1.01. The property. The HRA now owns the property described in the attached Exhibit "A ", (the "Property "), located in the City of Fridley, Anoka County, Minnesota. 1.02. Facilities and Project. The Developer, in accordance with HRA approval, plans to construct or cause to be constructed on the Property a single family home. The Developer shall provide the HRA with a copy of its plans and specifications showing details on the style, exterior architectural features, materials, color selections, etc. of the home to be constructed, which plans and specifications shall be submitted to the HRA for review and approval prior to the issuance of any building permits on the Property. Section 2. Sale /Purchase of Property. 2.01. Sale. The HRA agrees to sell the Property to Developer and the Developer agrees to purchase the Property from the HRA for the purchase price of $19,500.00. Developer will purchase the Property by Quit-Claim Deed with a minimum down payment of $ GOO- oo . The balance of $ (ct,00O_ uU will be carried on a purchase money mortgage (Exhibit B) at 5 %, which mortgage and interest will be due and payable no later than Toiv- 309 ict--t(00, at which time, if Developer is in full compliance with this agreement, Developer will be provided with a Warranty Deed and Satisfaction of Mortgage. Section 3. Developer's Representations. The Developer hereby represents, warrants and covenants to the HRA that as of the date of this agreement the statements set forth in this section are true and correct. 3.01. Litil knowledge of the before any court adversely affect ability of the Di Agreement. ration. There are no pending or, to the Developer, threatened actions or proceedings or administrative agency which will materially the financial condition of the Developer or the aveloper to perform its obligations under this W-1*9 3.02. Compliance. The Developer will comply with and duly and promptly perform all of its obligations under this Agreement and all related documents and instruments. Developer will also comply with all State and local codes /ordinances. Section 4. Developer's Undertakings. 4.01. Site Grading. Developer will be responsible for establishing and adhering to site grading plans, which plans shall be submitted to the HRA on or before �eb✓�xt Z' I°!�J(p_ The grading plans shall at a minimum specify house t pe, finish grades and drainage pattern. 4.02 New Construction. Developer shall be solely responsible for the construction of the single family home on the Property by 30, 19q(p The minimum value of said home shall be $80,000.00. 4.03. Floor Plan. Developer will be responsible for submitting to the HRA, and obtaining pre - approval of the floor plans and front elevations of the home proposed to be constructed on the Property. Said pre - approval must be obtained before the HRA will issue any building permits to Developer. 4.04. Landscaping. Developer will provide a $500.00 yard /landscaping package included in the price of the home. Said package will specify, at a minimum, tree sizes /type /number, sodded yards, foundation plantings /beds, and any necessary retaining walls. 4.05. Fees and Charges. The Developer will pay, when due, all permit fees, connection charges, user charges or other charges lawfully imposed by the City with respect to the Property. Section 5. City's Undertakings. 5.01. Existing Improvements. The City will be responsible for removing any existing structure, foundation and debris from the Property and will assure that all water and sewer services are stubbed to the boulevard at no cost to Developer. Section 6. Securitv. 6.01. Letter of Credit. The Developer will provide the HRA with a Letter of Credit in an amount equal to the anticipated cost of the improvements to be made on the Property. The form of the Letter of Credit shall be as set forth in Exhibit C (or substantially similar as determined in the sole discretion of the HRA). The Developer will be responsible for submitting the Letter of Credit to the HRA for approval as to form and amount, i' which approval must be obtained before any building permits will issue. As improvements are made to the property, the HRA agrees to negotiate with Developer certain incremental reductions in and to said Letter of Credit based upon the value of the improvements made. Section 7. Default. The failure to meet any condition of this Agreement shall be an event of default. 7.01. Remedies. If an event of default occurs and is not cured within 30 days of receiving written notice of said default, the HRA may take one or more of the following actions: a. suspend performance under this Agreement; b. terminate the Agreement, thereby rendering void any promises or approvals contained in this Agreement; c. draw upon the Letter of Credit as referenced in paragraph 6 herein; d. foreclose upon the mortgage referenced herein as provided by Minnesota law. Section 8. Notices. All notices hereunder shall be in writing and either delivered personally or mailed by certified mail, postage prepaid, addressed to the parties at the following addresses: um Fridley Housing and Redevelopment Authority 6431 University Ave. N.E. Fridley, MN 55432 Attention: Grant Fernelius Developer Diane Schommer IN WITNESS WHEREOF, the HRA has caused this Agreement to be executed by its duly authorized officers; and the Developer has executed this Agreement the day and year first above written. 09 • STATE OF MINNESOTA ss. COUNTY OF ANOKA FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY By: William W. Burns Its: Executive Director By: Lawrence R. Commers Its: Chairperson DEVELOPER Dia a Schommer On this day of 4njj%0.g 191-k-p , before me, a Notary Public within and for said County, a eared to me personally known, who, being by me duly sworn, did say that he is William W. Burns named in the foregoing instrument, the Executive Director of the Fridley Housing and Redevelopment Authority, a body politic and corporate under the laws of the State of Minnesota, and that this instrument was signed as his free act and deed. STATE OF MINNESOTA ss. COUNTY OF ANOKA otary Public On this � day of 199(x, before me, a Notary Public within and for said County, a eared to me personally known, who, being by me duly sworn, did say that he is Lawrence R. Commers named in the foregoing instrument, the Chairperson of the Fridley Housing and Redevelopment Authority, a body politic and corporate under the laws of the State of Minnesota, and that this instrument was signed as his free act and deed. HEIDI CHURCHILL K NOTARY PUBLIC - MIkAE$07A • RAMSEY COUNTY My C'-- Eq.•es Jan. 31.2= • 'V/ 4otlary Public ,e HEIDI CHURCHILL a NOTARY PUBLIC - M;NNESO TA RAMSEY COUNTY a: My C=M'SiW FgrM Jan. 31, 2000 STATE OF MINNESOTA ss. COUNTY OF ANOKA otary Public On this � day of 199(x, before me, a Notary Public within and for said County, a eared to me personally known, who, being by me duly sworn, did say that he is Lawrence R. Commers named in the foregoing instrument, the Chairperson of the Fridley Housing and Redevelopment Authority, a body politic and corporate under the laws of the State of Minnesota, and that this instrument was signed as his free act and deed. HEIDI CHURCHILL K NOTARY PUBLIC - MIkAE$07A • RAMSEY COUNTY My C'-- Eq.•es Jan. 31.2= • 'V/ 4otlary Public STATE OF MINNESOTA ss_ COUNTY OF ANOKA On this _� day of1991Q, before me, a Notary Public within and for said County, al eared to me personally known, who, being by me duly sworn, did say that"she is Diane Schommer named in the foregoing instrument, and that this instrument was signed as her free act and deed. .,.. >.< HEIDI CHURCHILL NOTARY PUBLIC - MINNESOTA '4' � . RAMSEY COUNTY Notary Public My Cammisbn Expires Jan. 31, 2D00 f:\munic \jdh \schoomer.hra MOO EXHIBIT "A" Lots 15, 16 and 17, Block E, RIVERVIEW HEIGHTS, Anoka County, Minnesota. DRAFT 12 -4 -95 SALE & DEVELOPMENT AGREEMENT RELATING TO 5720 Polk Street BY AND BETWEEN THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY AND WHITNEY HOMES, INC.. • SALE & DEVELOPMENT AGREEMENT THIS AGREEMENT, made and entered into this day of , 199_, by and between the Fridley Housing and Redevelopment Authority, (hereinafter called the "HRA"), and Whitney Homes, Inc. (hereinafter called the "Developer "); WITNESSETH THAT, in the joint and mutual exercise of their powers and in consideration of the mutual covenants contained herein, the parties recite and agree as follows: Section 1. Recitals. 1.01. The Property. The HRA now owns the property described in the attached Exhibit "A ", (the "Property "), located in the City of Fridley, Anoka County, Minnesota. 1.02. Facilities and Project. The Developer, in accordance with HRA approval, plans to construct or cause to be constructed on the Property a single family home. The Developer shall provide the HRA with a copy of its plans and specifications showing details on the style, exterior architectural features, materials,. color selections, etc. of the home to be constructed, which plans and specifications shall be submitted to the HRA for review and approval prior to the issuance. of any building permits on the Property.' Section'2. Sale /Purchase of Property. 2.01. Sale. The HRA agrees to sell the Property to Developer and the Developer agrees to purchase the Property from the HRA for the purchase price of $20,000.00. Developer will purchase the Property by Quit Claim Deed with a minimum down payment of $ 500.00 . The balance of $1g,SW - 00 will be carried on a purchase money mortgage (Exhibit B) at S %, which mortgage and interest will be due and payable no later than Tuvc 301 1-i9ly, at which time, if Developer is in full compliance with this agreement, Developer will be provided with a Warranty Deed and Satisfaction of Mortgage. Section 3. Developer's Representations. The Developer hereby represents, warrants and covenants to the HRA that as of the date of this agreement the statements set forth in this section are true and correct. 3.01. No Disability. The Developer is a corporation, authorized to do business in the State of Minnesota. 3.02. Liti+ knowledge of the before any court adversely affect of the Developer obligations under xation. There are no pending or, to the Developer, threatened actions or proceedings or administrative agency which will materially the financial condition, business or operation or the ability of the Developer to perform its r this Agreement. 3.03. Compliance. The Developer will comply with and duly and promptly perform all of its obligations under this Agreement and all related documents and instruments. Developer will also comply with all State and local codes /ordinances. Section 4. Developer's Undertakinvs. 4.01. Site Grading. Developer will be responsible for establishing and adhering to site grading plans, which plans shall be submitted to the HRA on or before f"ebvva 2 l9%9 . The grading plans shall at a minimum specify house t e, finish grades and drainage pattern. 4.02 New Construction. Developer shall be solely responsible for the construction, marketing and sale of the single family home on the Property by �urR -160, 1R9(p . The minimum selling price of said home shall be $80,000.00. 4.03. Floor Plan. Developer will be.responsible for submitting to the HRA, and obtaining pre- approval of the floor plans and front elevations of the home proposed to be constructed on the Property. Said pre- approval must be obtained before the HRA will issue any building permits to Developer. 4.04. Landscaping. Developer will provide a $500.00 yard /landscaping package included in the sale price of the home. Said package will specify, at a minimum, tree sizes /type /number, sodded yards, foundation plantings /beds, and any necessary retaining walls. 4.05. Fees and Charges. The Developer will pay, when due, all permit fees, connection charges, user charges or other charges lawfully imposed by the City with respect to the Property. Section S. City's Undertakings. 5.01. Existing Improvements. The City will be responsible for removing any existing structure, foundation and debris from the Property and will assure that all water and sewer services are stubbed to the boulevard at no cost to Developer. Section 6. Security. 6.01. Letter of Credit. The Developer will provide the HRA with a Letter of Credit in an amount equal to the anticipated cost of the improvements to be made on the Property. The form of the Letter of Credit shall be as set forth in Exhibit C (or substantially similar as determined in the sole discretion of the HRA). The Developer will be responsible for submitting the Letter of Credit to the HRA for approval as to form and amount, which approval must be obtained before any building permits will issue. As improvements are made to the property, the HRA agrees to negotiate with Developer certain incremental reductions in and to said Letter of Credit based upon the value of the improvements made. Section 7. Default. The failure to meet any condition of this Agreement shall be an event of default. 7.01. Remedies. If an event of default occurs and is not cured within 30 'days of receiving written notice of said default, the HRA may take one or more of the following actions: a. suspend performance under this Agreement; b. terminate the Agreement, thereby rendering void any promises or approvals contained in this Agreement; -c. draw upon the Letter of Credit as referenced in paragraph 6 herein;. d. foreclose upon the mortgage referenced herein as provided by Minnesota law. Section S. Notices. All notices hereunder shall be in writing and either delivered personally or mailed by certified mail, postage prepaid, addressed to the parties at the following addresses: Fridley Housing and Redevelopment Authority 6431 University Ave. N.E. Fridley, MN 55432 Attention: Grant Fernelius Developer Whitney Homes, Inc. 311 Sunrise Lane Champlin, MN 55316 8CC IN WITNESS WHEREOF, the HRA has caused this Agreement to be executed by its duly authorized officers; and the Developer has executed this Agreement the day and year first above written. FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY By: William W. Burns Its: Executive Director By: Lawrence R. Commers Its: Chairperson STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) On this day of , 199_, before me, a Notary Public within and for said County, appeared to me personally known, who, being by me duly sworn, did say that he is William W. Burns named in the foregoing instrument, the Executive Director of the Fridley Housing and Redevelopment Authority, a body politic and corporate under the laws of the State of Minnesota, and that this instrument was signed as his free act and deed. Notary Public =I STATE OF MINNESOTA ) ss. COUNTY OF ANOKA ) On this day of , 199_, before me, a Notary Public within and for said County, appeared to me personally known, who, being by me duly sworn, did say that he is Lawrence R. Commers named in the foregoing instrument, the Chairperson of the Fridley Housing and Redevelopment Authority, a body politic and corporate under the laws of the State of Minnesota, and that this instrument was signed as his free act and deed. STATE OF MINNESOTA ss. COUNTY OF ANOKA Notary Public On this day of 1991, before me, a Notary Public within and for said County, appeared to me personally known, who, being by me duly sworn, did say that he is aerr named in the foregoing instrument, the of Whitney Homes, Inc., a corporation under the laws. of the State of Minnesota, on behalf of the corporation, and that this instrument was signed as his free act and deed. f: \manic \idh \polkdevk.hra V EE C= atj-"- -QL��L Notary Public d r., CHERYL K (VOTARY PUBLIC £z vriYs VI"vj'ctNV n EXHIBIT "A" Lot 3, Block 2, Sexter Addition, except the South 35 feet thereof. ai Casserly Molzahn & Associates, Inc. Suite 1100 Southpoint Office Center • 1650 West 82nd Street • Minneapolis, Minnesota 55431 -1447 Office (612) 885 -1298 • Fax (612) 885 -1299 M E M O R A N D U M TO: City of Fridley d116- Attn: William Burns, City Manager 4 Barbara Dacy, Community Development Director FROM: James R. Casserly Mary E. Molzahn RE: Contract for Private Redevelopment By and Between the Fridley HRA and Industrial Equities, LLP DATE: December 6, 1995 Enclosed is the December 4, 1995 draft of the Contract for Private Redevelopment between the above parties. In consideration for the Redeveloper's construction of an 88,000 square foot office /manufacturing /warehouse facility, the Authority will assist the Redeveloper with utility relocation and site preparation costs in an amount not to exceed $280,000. This represents less than 10.percent of the total project cost. The Contract provides in Article 3 that $140,000 will be paid as a grant and $140,000 will be provided as a loan. Schedule D attached to the Contract is a copy of the Note. Interest will commence August 1, 1996 at five percent per annum. The Note will be paid in semi - annual installments of $10,994.93 commencing August 1, 1998 and continuing until August 1, 2006. Interest is calculated at a rate of five percent per annum. The amount of the assistance and the allocation between a loan and a grant are identical to the Redevelopment Contract the Authority just recently approved for AGRO -K. As with the AGRO -K Contract, the Note will be secured by a second mortgage recorded against the property and will be personally guaranteed by John Allen, the principal owner of the Redeveloper, Industrial Equities, LLP. There is one change from the AGRO -K Contract. With AGRO -K, the Authority provided the loan and grant prior to the construction of the new facility (this was principally the result of S.B.A. financing). In this contract, loan and grant will not be provided until the building is completed, a certificate of occupancy has been issued and the Authority has provided its Certificate of Completion. The Contract is very similar to other contracts the Authority has approved over the last ten years. However, there is one new provision which is a result of recent state law changes. That is found in Section 2.2(i) on page 7 of the Contract. The Redeveloper represents in that section that a certain number of new jobs will be created at certain wage levels. We will be discussing the number of jobs and the wage levels further with the Redeveloper and will insert the appropriate numbers. The Contract helps the Authority achieve its goals and provides as much security as seems reasonable for the Authority's loan. We recommend its approval. If there are any questions or problems, please give a call. JRC /MEM /kh CC: John Allen Encl r� T HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY FRIDLEY AND INDUSTRIAL EQUITIES, LLP. BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority ") as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority enter into a Contract For Private Redevelopment (the "Contract ") with Industrial Equities, LLP (the "Redeveloper "). Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted a development program known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program ")pursuant to Minnesota Statutes, Section 469.001 et seq. 2.02. The Authority hereby finds that the Contract promotes the objectives as outlined in its Redevelopment Program. Section 3. Authorization for Execution and Delivery. 3.01. The Chairman and the Executive Director of the Authority are hereby authorized to execute and deliver the Contract when the following condition is met: Substantial conformance of a Contract to the Contract presented to the Authority as of this date. Adopted by the Board of Commissioners of the Authority this day of , 199_. ATTEST: Executive Director Chairman al INDUSTRIAL EQUITIES L.L.P. Development and Investments TEL 612 591 0892 1660 South Highway 100, Suite 536W, Minneapolis, Minnesota 55416 FAX 612 591 1383 October 19, 1995 Ms. Barb Dacy Community Development Director City of Fridley 6431 University Avenue NE Fridley, MN 55432 Dear Barb: As you know, Industrial Equities has a preliminary interest in developing the 6.8 acre Northco Business Center site that is located at 73rd. and University a speculative multi tenant 88,000 square foot business center. Because this site has significant soil correction and utility relocation issues our current and future interests must be contingent upon establishing a reasonable tax increment and financing district . that is consistent with the plans that have been discussed between Northco, James Casserly and the City. Without soil correction and utility relocation assistance this project, like others considered before it, cannot proceed, and the future development is quite unlikely. Based on our discussions and your previous discussions with Northco, it appears that the HRA and the city Council will favorably consider establishing a tax increment finance district for this site. Accordingly, I have developed preliminary project designs and made the required applications to the City and Rice Street Watershed.District.to.allow for the sites preparation and correction. As I understand it, the District cannot be formally established prior to December 12, 1995. However, assuming the City would support this proposal, Industrial Equities would like to do preliminary site preparation prior to that date so as to allow for construction through the winter. This site preparation would include.only tree removal and general site grading that would allow for specific soil correction and preparation for the importing of the required select material to correct and raise the elevation of the site after the approval is granted. Unfortunately, if this early access is not possible, site grading must be delayed until late April of 1996, and construction completion will be delayed by over five months. Barb, if T.I.F. is not going to be available on this project we clearly do not want to get out in front_ of the headlights and invest any more time or money. However, if the City supports this project, we would like to take the allowable steps which would bring this project on line in the Spring of 1996. 9C Ms. Barb Dacy October 19, 1995 Page 2 Industrial Equities is enthusiastic about the possibility of developing this project in Fridley because businesses like doing business in Fridley. The City works for both the employees and the employers. You have virtually no vacancy but you have no expansion space to expand your existing companies much less attract desirable new employers. Industrial Equities believes a high quality energy efficient business center could fill this void for both Fridley and businesses in the City. I look forward to discussing in greater detail with you the HRA and City Council's response to this request. If.you.b e any- que-v0pns;dl; do not hesitate.to advise_ Yours very truly, John N. Allen JNA/gw � I CITY OF FRIDLEY TEL: 612- 571 -1287 APPLICATION FORM FOR TAX INCREMENT FINANCING Business Name: Address: Type ( Partnership, etc.): A,, A A JA Representative: ri AJ •tip Ai /9 o.7 Telephone: / /a - / 77 ?/ /n h 'z' 2 Name of Counsel: �,/r f l —Z,—w .:;e—,, , -"i' /tAdcj 7%1� i Name and Telephone of Accountant: List of Financial References: Name /Address /Contact /Telephone • .26 .S j Other Comments Pertinent to Your Application: Have You Ever Filed for Bankruptcy? Yes No T If Yes, provide details on separate sheet Have You Ever Defaulted on any Loan Commitment? Yes No If Yes, provide details on separate sheet INFORMATION CONCERNING APPLICANTS PROPOSED PROJECT Location of Proposed Development: (Attach a Drawing) Nature of Proposed Business: 9E CITY OF FRIDLEY TEL: 612- 571 -1287 Oct 23 95 Principal Business or Product of the company? Is the Proposed Project a New Facility' or Rehabilitation and /or Expansion of Existing Facility? Industrial /Commercial /Residential: ��tc What is the Present Employment of Your Firm: What is Your Estimate of Employment One Year After Completion of Project: What is Your Estimate of Employment Five Years After Completion of Project: Total Estimated Project Cost: �� ncAt V"TL A Total Estimated Construction Costs: CtIv Potential Other Use(s) of Proposed Development: Will this Development Attract Other Related Industries: Yes ,�(� No How? What Types? 1 t�•'-c� � � v3� .1U� • i�.�,._ L�l ^o4-�� . _ What is the Current Zoning Status of the Project Site? T -- l In Rezoning, will Zoning Variances or Conditional Use Permits be Required in Connection with the Project? 2 -2- 9F CITY OF FRIDLEY TEL= 612 -571- 1287 . --0rt— 3 .- 006-� - 1C Is the Property Properly Subdivided for the Proposed Use? Has Site Approval been Obtained for this Project? If So, When? By Planning Commission? By City Council? Have You Applied for Conventional Financing for the Project? Yes No X If Yes, Provide Details on Separate Sheet, "H. Information to Attach" If No, Why Not? _ �I.�r �� a (rte: �� d , =� !:V iw- ay.�.,�_. p , INFORMATION TO ATTACft Please include: _ State Public Purpose T� Description of Project VCX Schematic Drawing of Project -•>j Breakdown of Project Costs Amount of Subsidy Request Construction Schedule Legal Description - (Include PIN's) Other Pertinent Information Deposit -3- 9G M r � Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: January 5, 1996 TO: William Bums, Executive Director of HRA44'& FROM: Barbara Dacy, Community Development Director SUBJECT: Agreement for Legal Services with Casserly Law Office The previous contract with the Casserly Law Office expired December 31, 1995. The previous contract was a two year term, and the compensation per hour increased from $95 per hour in 1994 to $100 per hour in 1995. Proposed is a 1996 hourly rate of $102.50, and an hourly rate for 1997 of $105.00. The term of the proposed contract is from January 1, 1996 through December 31, 1997. Staff recommends the HRA approval the proposed contract with Casserly Law Office as proposed. gg y, •. Q'I a a Casserly Molzahn & Associates, Inc. Suite 1100 Southpoint Office Center • 1650 West 82nd Street • Minneapolis, Minnesota 55431 -1447 Office (612) 885 -1298 • Fax (612) 885 -1299 M E M O R A N D U M TO: City of Fridley Attn: William Burns, City Manager Barbara Dacy, Community Development Director FROM: James R. Casserly Mary E. Molzahn RE: Agreement for Legal Services with Casserly 'Law Office DATE: January 4, 1996 Enclosed you will find a draft of an Agreement for Legal Services. The only change between this Agreement and the previous one is the hourly rate. This draft has the hourly rate for 1996 at $102.50 and the hourly rate for 1997 at $105. We are asking that this increase of $5 be spread over two years. Currently all of our public sector clients pay hourly fees ranging from $105 to $125. Sometimes the obvious needs to be said. We certainly appreciate being able to work for the Fridley HRA. Unquestionably, this Authority provides us with some of our most diverse and interesting work. Just as important, the staff of the City and the Authority are wonderful to work with. We look forward to a continued relationship and wish to say thanks again for your support and your business. JRC /MEM /kh Encl 1nA -. r %J V .J°i Z:,O 1 .= - GJ 1 AGREEMENT FOR LEG SERA ES BETWEEN THE FRIDLEY HOUSING AND REDEVELOPMENT ArrTHORITY HRA AND CAS�.,SERLY LAW OFFICE. P.A- 1. Term of the Agree. January 1, 1996 through December 31, 1997. 2. Duties and Responsibilities of Caste!' Law Office, P.A. A. Analyze subsidies requested by developers or offered by the City, including: i. Tax increment analysis; ii. Internal rate of return analysis; and iii. Pro forma cash flow and balance sheet analysis - R. Assist with any tax increment work, including the following: i. Modify the redevelopment project area; ii. Establish the tax increment district and the tax increment finance plan, including impact analyses; iii. Prepare resolutions adopting the above; iv. Prepare notice of public hearings; V. Attend public hearings to provide support and background; vi. Prepare letters and notices for the School and County Boards; and vii. Prepare letters requesting certifications and filing documents with the appropriate jurisdictions. C. Assist in the negotiation and preparation of contracts for private development, assessment agreements, special assessment agreements, interest rate reduction programs, revenue noes, and other contractual arrangement between the Fridley HRA and the developer. D. Assist with any debt insurance including recommendations as to size, maturity, form and sale of debt as they relate to the project analysis. E. Assist with policy analysis and with the review and updating of tax increment districts. b 1 J HI N ._' :Z70 1 ►'11' F. Assist with the development of housing programs and prepare the appropriate documents and resolutions. 3. Compensation: A. Compensation shall be at the hourly rate of One Hundred Two Dollars and Fifty Cents ($102.50) from January 1, 1996 through December 31, 1996; and One Hundred Five Dollars ($105.00) from January 1, 1997 though December 31, 1997. B. Casserly Law Office, P.A., shall submit an itemized statement that clearly accounts for the hours of service provided by- Casserly Law Office, P.A. 4. Other Reimbursements: A. Casserly Law Office, P.A., shall be reimbursed for long distance calls and delivery services, as well as for any filing fees that it incurs on behalf of the Fridley HRA. All other expenses will be included as part of the per hour compensation rate. Agreed and entered into this day of January, 1996. CASSERLY LAW OFFICE, P.A. By FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY By By a° 0 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: January 5, 1996 TO: William Bums, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Femelius, Housing Coordinator SUBJECT: Consider Application for 1996 Minnesota Cities Participation Program (MCPP) The Minnesota Housing Finance Agency has announced that it is accepting applications for the 1996 MCPP. This program provides below market rate mortgage loans to first time home buyers who meet the following guidelines: 1) Income less than $40,800 2) Good credit 3) Home price can't exceed $95,000 As in previous years, MHFA will sell bonds on behalf of participating communities and work with lenders approved by the participating city. Once the bonds are sold each city will have 6 months to utilize their allocation. After this time any unused funds will be combined into a. statewide pool and made available to other cities for an additional 2 months. It should also be noted that under state law participating cities which do not use at least 50% of their 1996 allocation are prohibited from reapplying for MCPP funds in 1997. This year it is expected that between $38 to $58 million will be available statewide for the housing bond pool. However, because more cities are competing for funds individual city awards will probably remain the same as last year ($584,000 in 1995 for Fridley). This will mark the fourth year that the HRA has participated in the program. Since 1993, Fridley has received $2,243,000 in MCPP funds all of which have been spent to make mortgage loans. Recommendation Staff recommends that the HRA authorize an application for the 1996 MCPP for a minimum allocation of $500,000 and further that the Executive Director be authorized to sign any documents necessary to administer the program. GF/ M -96-19 11 The Minnesota City Participation Program (MCPP) PROGRAM GUIDELINES • A population based formula is used to determine the maximum allocation for which each city qualifies. The maximum allocation a city may receive is its percentage of the housing pool as compared to the total population of all applications received. • Cities may apply for a specific dollar amount (minimum $100,000) or may request the °maximum allowable" permitted by the population formula. If the individual allocation as determined by the per capita formula falls below a level the city cites as "minimum," MHFA would then contact the city . • A city must use at least 50% of their 1996 allocation by the date of program expiration in order to be eligible to apply the following two years. • The usage test also applies to self- issuers. With submission of this application, these cities are required to submit loan origination data to MHFA to confirm compliance with this statutory requirement • The 1996 MCPP program term will run for eight months. Cities will have the exclusnre use of their individual allotments for a six month period. Following the expiration of the six month period, all remaining individual allotments will be collapsed into a single, statewide pool available in all participating cities for the remaining term. • MCPP mortgages must meet the requirements of standard mortgage insuring and guaranteeing entities, mortgage industry accepted underwriting standards, and state and federal law governing .mortgages provided through the issuance of mortgage revenue bonds. • Adjusted borrower income limits may not exceed 80% of area median income as determined by the Department of Housing and Urban Development (HUD). Adjusted income is calculated by taking a household's gross annual income and subtracting $1000 per household resident. Cities may place their local program limit at or below these figures. MCPP RFP January 2, 1996 11A MCPP RFP Currently, these limits are as follows: County 80% of HUD New Construction Area Median Income Eleven County Twin Cities Metropolitan Area (Anoka, Carver, $40,800 Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, $95,000 and Wright) Clay County Olmsted $41,680 All other counties $34,800 • Cities have the option of establishing any price limits desired, provided they do not exceed the statutory defined limits listed below. The current statutory purchase price maximums are as follows: If the mortgaged property is located in: Existing Home New Construction Eleven County Twin Cites Metropolitan Area (Anoka, Carver Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright) $95,000 $95,000 St. Louis .County $95,000 $95,000 Clay County $91,168 $95,000 Benton and Steams Counties $78,545 $95,000 Houston County $73,100 $95,000 Balance of State $77,540 $95,000 • MCPP funds may only be used to finance properties located within the jurisdictional limits of the participating city or county. • One of the following conditions must be met if new construction is to be provided in the seven county Twin Cities metropolitan area under the MCPP: 1. The new housing must be located in a redevelopment area where at least 25% of the buildings are substandard. 2 The new housing must be replacing a substandard structure. 3. The new housing must be part of a housing affordability initiative, meeting one or more of the criteria listed in Attachment 1 (enclosed). 4. The new housing is located on a parcel purchased by the city or conveyed to the city under Section 282.01, Subdivision 1, (tax - forfeited lands). 2- 11B January 2, 19% MCPP RFP S The city must have negotiated affordable and life cycle housing goals with the Metropolitan Council. (For self issuers, please note: If your city is located in the seven county Twin Cities metropolitan area, the above new construction restrictions do not apply to loans closed 10 months after your program start date). • In the balance of the state, new homes may be financed immediately only if the city includes in its proposal: 1. Steps the city will take to encourage loans for existing housing. 2 An explanation as to why new housing is needed. • Statewide, cities may not provide set -aside or commitments for the exclusive use of builders or developers except for housing affordability initiatives as specified in Attachment 1. • MHFA offers participating MCPP cities access to MHFA's Homeownership Assistance Fund (HAF), an interest -free, graduated payment second mortgage loan. HAF provides lower income first-time homebuyers with downpayment and monthly payment assistance. • Home mortgage loans are to be originated by participating lenders and bought by MHFA in accordance with the MHFA Mortgage Program Procedural Manual. • If a city will use additional resources or subsidies in conjunction with the MCPP, a layer of guidelines may be added as required by the source of the subsidy. Individual cities are responsible for the definition and enforcement of these added guidelines. • The Minnesota Department of Finance will charge a processing fee of $20 for each $100,000 allotment provided. For cities participating in the MCPP, this is due with the executed MCPP contract returned by each city before the bonds are sold. • Once cities have selected and identified participating lenders in the MCPP application, no additional lender may be added for the balance of the program term. • MHFA will provide marketing support in the form of brochures, posters, press releases and a shared marketing cost program. • If preferred, cities can withdraw completely from MHFA's marketing program in order to develop their own marketing program. Cities choosing this option would be responsible for developing, producing, and distributing their own marketing materials and press releases. These cities may still access funds through MHFA's shared marketing program. • t- ollowmg the application deadline, MHFA will review all submitted applications. • MHFA will apply the per capita allocation formula, as specified in the statute, to determine the allocation plan. 3- 11C January 2. 19% MCPP RFP • MHFA will complete a mailing to notify cities of allotment amounts, and will provide a formal request for fees. For those cities participating in the MCPP, the mailing will also include a contract which must be signed and returned. Cities participating in the MCPP must execute and return the contract along with the processing fee (See Part VII, Program Administration) and'a 1 % application deposit. The 1 % application deposit will be fully refunded, approximately one month after the closing of the bond sale. • Please note that upon notification of allotment, self - issuing cities must send all fees directly to the Department of Finance at the following address: Lee B. Mehrkens Minnesota Department of Finance Cash and Debt Management Division 400 Centennial Building 658 Cedar Street St. Paul, MN 55155 -a January 2. 1996 Attachment 1 HOUSING AFFORDABILITY INITIATIVES Under Administrative Rules (pending) governing issuance of mortgage revenue bonds, a "housing affordability initiative" must meet one or more of the following criteria: 1. The new construction program is accepted and or designated under The United States Department of Housing and Urban Development (HUD) Affordable Housing Program or any successor program sponsored by HUD to encourage affordable, newly constructed housing. 2. The program provides that financial resources, other than those necessary to complete the mortgage revenue bond sale, are applied to reduce the cost of the housing or improve the terms of the mortgage loans provided. A contribution greater than, or equal to, five percent of the purchase price of each newly constructed home to be financed with mortgage revenue bond proceeds must be provided. Such contributions may be provided either in whole, or in part, from federal, state, or local government resources or programs, private foundations, or the Federal Housing Finance Board. 3. The applicable local government must take steps to relax regulations for newly constructed homes that result in greater housing affordability. These. steps must reduce the cost of the housing by at least five percent. 4. The program supports the efforts of housing groups that support self -help and/or owner built housing initiatives in which at least 15 percent of the labor and/or materials needed to complete the construction of each house is acquired or donated through the efforts of such groups. 5. Housing is constructed -by a nonprofit entity (as defined in Minnesota Rules Part 4900.0100�bpart 21). The nonprofit must have the development of affordable housing as its primary mission. 11E Attachment 2 Alternate Application Procedures Cities may also apply to the Agency for MCPP participation or an allocation for self issuance of bonds by submitting the following documentation: 1. The city must submit a housing plan 'as described in Minnesota Statutes § 462C.03, subdivisions 1 and 1a; and, 2. The city must provide information which clearly establishes that the program to be funded with mortgage revenue bonds meets the requirements of the program pertaining to borrower income limits, house price limits, limits on new construction both in the Twin Cities MSA and outside the Twin Cities MSA and restrictions on builder set - asides (see Minnesota Rules Part 4900.3220, subpart 2 through 7); and 3. The city must request a specific allocation from the housing pool by February 15, 1996, to be determined by the city's per capita percentage share of the pool based on current population statistics. The minimum _allocation that may be requested is $100,000, and 4. The city must describe, if applicable, the steps it will initiate in non - metropolitan areas to encourage loans for existing housing before new housing, and 5. If the city issues and sells bonds independently, it must maintain accurate records of funds usage (loans originated) and provide these records to MHFA, upon request, to confirm compliance with statutory usage requirements. If this alternate application method is used, attach a letter of clarification indicating if application is being made for the MCPP (where MHFA sells bonds on the city's behalf), under a joint powers arrangement, or for an allocation to issue bonds independently. 11F Attachment 3 KEY ADVANTAGES OF THE MINNESOTA CITY PARTICIPATION PROGRAM Bond Advantages of MCPP Participation MHFA has historically obtained the lowest available bond interest rate in Minnesota, which allows cities to pass the lowest interest rate on to their borrowers. All program underwriting costs and risks of bond issuance are absorbed by MHFA. Costs to participating cities are limited to a Department of Finance processing fee (charged to both MCPP participants and self issuers) of $20 for each $100,000 in allotment. MHFA may often react to a falling interest rate market and lower program rates further during the program term due to the volume of its mortgage revenue bond activity and /or remarketing provisions in its bond resolution. Loan Advantages of MCPP Participation Commitment of city staff time is primarily limited to development of the local program (completing the application), administration of any city added targeting or enhancements, and monitoring fund usage. MCPP funds are flexible. Cities may "customize" their local program to meet local housing needs. This may be through targeting of funds to specific population groups, employees, neighborhoods, or through the addition of a local subsidy to enhance the program's impact. MHFA's Homeownership Assistance Fund (HAF) is available with MCPP mortgage funds. HAF provides downpayment / closing cost assistance of up to $2500, and monthly payment assistance. as high as $120 per month to help reach lower income borrowers. HAF cannot be used with self- issued city bond programs. House price and household income limits under the MCPP are higher than other MHFA programs, providing cities with the flexibility to adjust their program guidelines to more effectively serve their local market. MHFA provides marketing support for each city, including brochures, posters, ad layouts, and local and statewide press releases. All lender compensation costs are absorbed by MHFA. Participating lenders will net 2 1/2 points for each loan closed and sold to MHFA under the MCPP (1/2 point higher than MHFA's Minnesota Mortgage Program). Discount points charged to the home seller will be 1 1/2 points, for both existing housing and new construction under the MCPP (compared to 2 and 2 1/2 points under the Minnesota Mortgage Program). 11G r a° 0 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: January 5, 1996 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Femelius, Housing Coordinator SUBJECT: Consider Appointment of HRA Remodeling Counselor This position was originally identified in the 1995 Goals and Objectives and included in the 1995 HRA budget, however due to other housing program priorities the position was never filled. Late last year we revisited the issue and began evaluating the position. Based on our experience over the last two years, we feel this position will meet an important need in the housing program. We have discovered that many homeowners often need assistance to plan and carry out their home improvement projects. In many cases, issues such as cost/benefit analysis, design considerations, - budgeting, project coordination, and City approvals (i.e. building permits, variances, etc.) are overlooked until after the financing is obtained. The result is that some projects are poorly designed, very expensive, usually over budget and only partially completed. The remodeling counselor service will focus on the important pre - planning issues identified above. The expectation is that the remodeling counselor will meet with homeowners before they begin their projects. The counselor will help the homeowner identify potential improvements (Le code, health, safety, plus value -added improvements like decks, and room additions), possible cost savings, the pros and cons of "do it yourself vs. hiring a contractor and additional resources that the homeowner may need. The service will be free to homeowners, however it may be necessary to establish limits on the amount of time spent per consultation. Other activities planned for the this position include: 1) Assistance with home remodeling fair 2) Tool lending library 3) Housing rehab computer kiosk 12 Remodeling Counselor January 5, 1995 Page 2 4) "Rehab a Rambler° pilot project (proposed) 5) Assistance with purchase/rehab mortgage program 6) "Energy Conservation Home" pilot project (proposed) The position is a contract position, but technically will be classified as temporary part- time with a limit of 20 hours per week. Because of this classification, the HRA is not responsible for paying benefits, but will carry liability and worker's compensation insurance. The hourly rate is $15.00. A total of $16,793 has been budgeted for the position in 1996. This position will not conflict with the services currently provided by CEE. The remodeling counselor will focus on single family homes and CEE will assist with rental property evaluations. This arrangement is necessary because CEE is still responsible for energy auditing in the rental energy and rehab loan programs. In addition, CEE must be involved in the rental programs in order for the owners to take advantage of the utility rebate programs. Last October the position was advertised and a total of 26 applications were received. Of this number three candidates were selected for interviews. A panel consisting of the Housing Coordinator, Planning Coordinator, Chief Building Official, and the Assistant to the City Manager, was assembled to conduct the interviews in early December. The Community Development Director interviewed the finalist. The finalist, Robert Van Nelson, is currently employed as a Rehab Advisor with West Side Neighborhood Housing Services in St. Paul. He has worked there for two years in a similar capacity to the Fridley position. Mr. Van Nelson has a degree in architecture from the University of Minnesota, was self - employed as a remodeling contractor for two years, and spent several years as a finish carpenter for a small contracting firm. He also has considerable experience working with computers and various software programs. If appointed, he would leave West Side NHS and devote his time to the Fridley position starting in mid - February. Recommendation Staff recommends that the HRA appoint Robert Van Nelson to the position of Home Remodeling Counselor. GF/ M -96-21 12A V 3144 Oakland Avenue Minneapolis, MN 55407 November 5, 1995 City of Fridley 6431 University Avenue N.E. Fridley, MN 55432 Dear Human Resources, I am writing in response to the Home Remodeling Counselor Position that was listed in the Sunday, October 28 issue of the Star Tribune. The job description that I received, I believe that I would enjoy the responsibilities and challenges of the position your agency has to offer. You will note from the enclosed resume that I am alReliab Advisor for the West Side Neighborhood Housing Services. My involvement in home improvement projects at this level has developed my organizational and decision making skill. My education has exposed me to the social, philosophical, and aesthetic issues of our built environment. I believe that my experience with both design theory and the construction process would bring a valuable perspective to the position in your agency. I feel that my motivation, attention to detail, and ability to take on responsibility would be a positive addition to the City of Fridley's HRA. A letter and resume can tell you only so much about my qualifications. I would welcome the opportunity to discuss my background with you in person. Please feel free to call me at 824 -4133. If I am not home, please leave a message. Thank you for your consideration. Enclosure. Sincerely, ( �ZI71-z R obert Van Nelson 128 Robert Van Nelson 3144 Oakland Avenue Minneapolis, MN 55407 (612) 824 -4133 Employment r Rehab Specialist 1993- Present History West Side Neighborhood Housing Services - Developed scopes of work and wrote specifications to comply with HUD guidelines. - Monitored construction and mediated conflicts between homeowners and contractors. - Managed construction escrow accounts and payouts for approximately 60 projects - $600,000 of rehab work. - Inspected 50+ properties for banks providing first mortgages. - Designed and produced WSNHS Annual Reports. General Partner 1991 -1993 As You Like It Remodeling - Supervised work crews of 2 to 3 workers. - Represented company in meetings with clients and architects. - Participated in development of bid proposals. - Coordinated 6 projects totaling $275,000. Carpenter- Laborer 1988 -1991 A number of small remodeling companies. Educational University of Minnesota - Minneapolis, MN Background - Bachelor of Arts in Architecture. - Bachelor of Environmental Design - Neighborhood Reinvestment course in Advanced Project Management. Computer Experienced user of: Skills - Microsoft Office Suite, Publisher, Access, Pagemaker, Data CAD, Upfront 3 -D Modeling. - Both IBM and Macintosh environments. Special Interests Central Neighborhood Improvement Association - Worked within a committee to develop the housing portion Central neighborhood's NRP plan. References available upon request - 12C �--.-% Community Development Department U HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 8, 1995 TO: William Burns, Executive Director of HRA 440, FROM: Barbara Dacy, Community Development Director SUBJECT: Appeal of Relocation Benefits by Jang Wong Restaurant I will be enclosing the attached letter in the upcoming KRA packet for the HRA's information only. I have contacted Jim Hoeft and asked him to make the appropriate arrangements for a hearing examiner to hear the appeal by the Jang Wong Restaurant for relocation benefits. Additional services from Kurt Schnitker's office will be necessary. I will update the HRA as soon as I find out more about the time and process of the proposed appeal. In essence, the owners of the restaurant are requesting additional funds. Approximately $60,000 has been paid to them already. I believe they may be asking for an amount around $90,000. BD:ls M -95 -600 HUFFMAN, USEM, SABOE, CRAWFORD & GREENBERG, P.A. Attorneys At Law Bruce N. Crawford+ 1000 Water Park Place Richard W. Huffman* James Olav Saboe 5101 Olson Memorial Highway Craig D. Greenberg Ronald H. Usem ++ Minneapolis, Minnesota 55422 Of Counsel: Telephone: (612) 545 -2720 James L Berg Facsimile: (612) 545 -2350 November 91) 1995 Housing and Redevelopment Authority Fridley Municipal Center 6441 University Avenue N.E. Fridley, MN 54532 Re: Jang -Won Restaurant; Relocation Benefits My client: Seong H. Jang Notice of Appeal of Award To the City of Fridley and Mr. Herrick, its attorney: PLEASE BE NOTIFIED by this letter that my client, Seong H. Jang, and the Jang -Won Restaurant hereby disagree with the determination and decision of the City of Fridley Housing and Redevelopment Authority relative to relocation benefits. My clients hereby appeal the decision of the Agency pursuant to the appeal rights of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. Please contact the undersigned for the purposes of setting up the appeal procedures and process. RWH:srq cc: Virgil Herrick, Esq. Alan Webster Andy Jang Michael J. Crowe Very truly yours, HUFFMAN, USEM, SABOE, CRAWFORD & - GREENBERG, P.A. Huffman +Admitted To Practice In California; International Association Of Practicing Lawyers 'Transportation Lawyers Association; Association Of Transportation Practitioners *Real Property Law Specialist. Certified By The Minnesota Bar Association Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: January 5, 1996 TO: William Bums, Executive Director of HRA 0 ,146' FROM: Barbara Dacy, Community Development Director Grant Femelius, Housing Coordinator SUBJECT: Consider Contract with Center for Energy and the Environment for Administration of City Wide Housing Program and Consider Joint Application for MHFA Community Fix-Up Fund Background Since last September we have been working with CEE on a joint housing program in the Hyde Park neighborhood. CEE has been responsible for administering a comprehensive rehabilitation program to assist homeowners and landlords in fixing up their properties. By offering a combination of low- interest rate loans and HRA deferred financing, CEE has been able to provide financing packages tailored to each customer's needs. So far the response has been good and 27 owners have submitted applications. Many of the owners are still getting bids and other information, but several loans have actually been processed. To date a total of 4 buildings (2 homes, a 4 unit and 6 unit building) have been improved for a total value of $45,000. Additional loans are scheduled to close this month and we will continue to offer the programs for the rest of the year. A total of $500,000 will be budgeted for Hyde Park in 1996. City-Wide Program This year we are proposing to expand CEE's role City wide. Based on the positive experience in Hyde Park we feel it is appropriate to continue our partnership with CEE for the following reasons: 1) As a non -profit agency CEE is focused on the type of housing programs needed in Fridley such as low interest loans and energy efficiency programs. 13 CEE Contract January 5, 1996 Page 2 2) CEE is only compensated for loans actually made. Therefore, the incentive for CEE is make more loans. 3) CEE has a strong track record of administering successful housing programs. In fact, over the last two years CEE has been the top performer in the state for processing MHFA Home Energy loans. Moreover, CEE has a well trained staff of loan officers and processors and is willing to add more personnel if the loan volume in Fridley increases. 4) CEE has been responsive to our needs by utilizing a variety of state programs and leveraging the HRA dollars. CEE has prepared a proposal (copy attached) to administer a city -wide program. As you can see, CEE would offer many of the same services currently provided in Hyde Park and at the same unit costs. However, CEE is recommending a few changes for the city -wide effort: 1) The city wide program should focus on promoting a single loan concept. For example, CEE suggests that we market loans at 5% up to $25,000 for a maximum term of 20 years. The customer will not have to wade through numerous brochures trying to figure out which program (i.e. MHFA, DTED, HRA) they can qualify for and what is required. The underlying funding will be utransparent" to the borrower. 2) The city wide program should be expanded to include the middle4ncome households which are currently not being served. This group would include families with incomes up to $58,650. MHFA has developed a new program intended to serve this group and CEE feels that we should take advantage of the opportunity. 3) The city -wide program should assist those household which can afford to make monthly loan payments, but because of debt or credit issues are slightly above the underwriting criteria to receive an MHFA or bank loan. This group would be funded by the HRA via a revolving loan pool ($250,000 in 1996). The loans would be sold to a secondary market entity such as MHFA or the Community Reinvestment Fund. 1 01 A CEE Contract January 5, 1996 Page 3 4) The, city -wide program should leverage HRA dollars to the greatest extent possible. One way of accomplishing this is to utilize a financial tool known as an °interest rate write down". Under this arrangement the HRA would establish a fund ($50,000 in 1996) to buy down the interest on MHFA loans originated by CEE. For example, MHFA loans are issued at rates from 2 to 8 percem depending on the borrower's income. The HRA would only write down the rate on loans above 5 %. Although the mechanics are somewhat complex, the process would work as follows: Example: A borrower who eams $30,000 can qualify for an MHFA home improvement loan at 8 %. In this example they want a loan of $5,000. The HRA would then write down the interest rate from 8% to 5 %. MHFA Loan Monthly Payment Total Interest Paid Interest Savings Regular MHFA 8% rate $5,000 $101.38 $1,082 Special HRA 5% rate $5,000 $94.36 $661 $421 The difference in interest is savings to the borrower. This amount would be subsidized by the HRA via its special fund. Although this interest subsidy is not paid back, the $50,000 fund will leverage a considerable amount of improvements. In fact, 66 loans could be made for total of $330,000 worth of improvements. 5) The city -wide program should include a last resort program for those borrowers who cannot get a loan or a grant. It should noted that under some very unusual circumstances a borrower may be in situation where our housing programs may not be able to provide assistance, such as with a pending bankruptcy or foreclosure. These last resort programs would be available to both homeowners and landlords. 13B CEE Contract January 5, 1996 Page 4 6) Finally, CEE believes that the HRA does not need to provide additional subsidies to rental property owners because it can offer attractive financing through its existing programs. In Hyde Park, we will continue to provide incentive -based matching deferred loans and will evaluate at year end which model is more effective. Recap In summary, we are proposing the following: 1) To continue the efforts in Hyde Park with the programs that have been previously developed. Our existing administrative contract with CEE will remain in place through the end of 1996. We are anticipating that $500,000 will be adequate from the HRA to provide matching deferred loans and last resort funding to both homeowners and landlords. These funds will be paid back to the HRA at some point in the future. 2. To expand the role of CEE to administer all of our loan programs city -wide. A separate administrative contract will be required and should run until February of 1997. At the end of the contract we will evaluate the performance of CEE and make a recommendation. We anticipate that a total of $650,000 will be adequate from the HRA in 1996 to assist with housing rehabilitation efforts. Of this figure, $300,000 would fund interest -rate down and revolving loan programs, but would not be paid to the HRA. These funds would, however, leverage a considerable amount of loan activity. Recommendation Staff recommends that the HRA accept the proposal submitted by the Center for Energy and Environment to administer a city -wide housing rehab loan program and further that HRA Chair and Executive Director are authorized to execute a service contract for said services. GF/ M -96-18 13C LI Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: January 5, 1996 11 TO: William Bums, Executive Director of HRA 4� FROM: Barbara Dacy, Community Development Director SUBJECT: Lake Pointe Update Dave Jellison from MEPC will attend Thursday's HRA meeting in order to review MEPC's schedule for activities for marketing the Lake Pointe site. MEPC has already accomplished a significant amount of work and has contacted a number of potential users. Jellison will describe those contacts and will be prepared to answer the HRA's questions. BD /dw u •. 14' DRAFT: December 1, 1995 CONTRACT FOR EXCLUSIVE NEGOTIATIONS THIS AGREEMENT, effective as of this 1st day of December, 1995 is between the Housing and Redevelopment Authority in and for the City of Fridley, having its principal offices at 6431 University Avenue N.E., Fridley, Minnesota, 55432, and MEPC American Properties, Inc., a Delaware corporation with its Minnesota office at 1550 Utica Avenue South, Suite 120, Minneapolis, Minnesota 55416. WHEREAS, the Redeveloper is proposing to develop the area identified on the map attached as Schedule A and is requesting that the Authority negotiate exclusively with the Redeveloper while the area is being studied, designed and marketed. WHEREAS, the Authority is willing to negotiate exclusively with the Redeveloper provided certain conditions described below are met. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: Section 1.1. Definitions. In this Agreement unless a different meaning clearly appears from the context: "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Authority" means the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota. "City" means the City of Fridley, Minnesota. "Council" means the Council of the City. "Marketing Plan" means the program to market the Redevelopment Project. The Marketing Plan is further described on Schedule B attached to this Agreement. "Master Plan" means the plan detailing the overall development of the Redevelopment Project as a corporate office park with a commercial component on the Commercial Tract. The Master Plan shall be prepared by the Redeveloper and approved by the Authority and the City. "Minimum Improvements" means as follows: A. For the Office Tract it is the construction of Class A office buildings of not less than 50,000 square feet 14A and containing not less than three stories for each building. The office buildings may contain some ancillary space for service retail that is needed to promote and develop a Class A corporate office park. B. For the Commercial Tract it includes any use described for the Office Tract and further includes commercial uses such as restaurants, banks, day care centers, hotels, medical clinic, convention center and service retail but not general retail. "Party" means a party to this Agreement. "Purchase Price" means the amount to be paid by the Redeveloper for the Redevelopment Property. The Purchase Price for the Office Tract shall be an amount equal to fifty percent (500) of the market value established by an independent appraiser selected by mutual agreement of the Authority and the Redeveloper, provided that the appraiser shall have determined the value within nine (9) months of the date of closing. Only the first building in the Office Tract will be eligible, provided that the building does not exceed 80,000 square feet, for the Purchase Price described above. Since sub8equent buildings in the Office Tract will have structured parking, the Purchase-Price shall be ten dollars ($10.00) for each parcel. The Purchase Price for parcels in the Commercial Tract -shall be an amount equal to seventy -five percent -(75%) of the market value established by an independent appraiser selected by mutual agreement of the Authority and the Redeveloper, provided that the appraiser shall have determined the value within nine (9) months of the date of closing. "Purchase Price Payments" means payments received by the Authority for the Purchase Price. "Redeveloper" means MEPC American Properties, Inc., a corporation organized and existing under the laws of the State of Delaware. "Redevelopment Contract" means the Contract for Private Redevelopment described in Section 4 of this Agreement. "Redevelopment Project" means the Redevelopment Property and the Minimum Improvements. "Redevelopment Property" means the real property described in Schedule A of this Agreement. That portion to the west compromising approximately 24.56 acres shall be referred to as the Office Tract. That portion to the East comprising approximately 8.21 acres shall be referred to as the Commercial Tract. E LE "State" means the State of Minnesota. "Tax Increment" means only that portion of the real estate taxes paid solely with respect to the Redevelopment Property (which is part of the property in the Tax Increment District) and which is remitted to the City as tax increment pursuant to the Tax Increment Act. "Tax Increment Act" means Minnesota Statutes, Sections 469.174 - 469.179. "Tax Increment District" means Tax Increment Financing District No. 6 created by the Council in connection with the Redevelopment Program. "Tax Increment Plan" means the tax increment financing plan adopted by the Authority in connection with the creation of the Tax Increment District. "Unavoidable Delays" means delays which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad weather, Acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similaf Judicial action, directly results in delays, or acts of any federal, state or local governmental unit which directly result in delays. Section. 2.1. Representations bV the Authority. The Authority represents as follows: (A) The Authority is a public body duly organized and existing under the laws of the State. Under the provisions of the Act, the Authority has the power to enter into this Agreement and carry out its obligations hereunder. (B) The Authority is the fee owner of the Redevelopment Property (C) The Authority shall use all Purchase Price Payments to reimburse the Redeveloper for the costs of structured parking in the Office Tract. Section 2.2. Representations by the Redeveloper. The Redeveloper represents as follows: (A) The Redeveloper is a Delaware corporation, organized and existing in good standing under the laws of Minnesota, is authorized to transact business in the State, has duly authorized the execution of this Agreement and the performance of its obligations hereunder, and neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with-the terms and 3 14C conditions of this Agreement will constitute a breach of any obligations of the Redeveloper under the terms and conditions of any indebtedness, agreement or instrument of whatever nature to which Redeveloper is now a party or by which it is bound, which breach will materially adversely affect the ability of Redeveloper to perform its obligations under this Agreement. (B) The Redeveloper's mission for this Redevelopment Property is to develop multi- tenant, multi -story office buildings with support services commensurate with successful office parks. (C) The Redeveloper will pursue all prospective users including those interested in build -to -suit or land purchases which fulfill the economic and aesthetic vision described in B above and conform to the Master Plan. (D) While the Office Tract has priority for development, the Authority will not unreasonably withhold its approval of those projects in the Commercial Tract that are identified in teh Master Plan and are essential in attracting u sers to the Office Tract. (E) The first office building may have temporary surface parking but will be designed to accommodate structured parking of two or-more levels. With the development of a second building, the two buildings will be served by a combination of structured and surface parking. Subsequent buildings will be constructed with structured parking but may also have surface parking. . Section 3.1. Redeveloper Responsibilities. The Redeveloper shall be responsible for all costs associated with the marketing and development of the Redevelopment Project. The Redeveloper shall implement the Marketing Plan generally as follows: A. Establish office market data on this location and determine the corporate users and amenities for space in the Redevelopment Project. B. Review.any previous plans and design a Master Plan as necessary to maximize the site and meet the requirements of the corporate users (in building size, floor plate, quality, timing and market rate) for this location. The Master Plan will be presented to the City and Authority for their review and approval, and the Redeveloper shall reasonably adjust the Master Plan consistent with market needs as requested by the City and Authority. C. Develop marketing materials such as fliers and brochures to assist in marketing efforts for mailings, advertising, proposals to corporate users, broker parties, press releases, etc. Scheduled timing of 4 14D these marketing events and materials are set forth in Exhibit B. D. The official announcement to the public of the Redevelopment Property would be achieved by the activities shown on Exhibit B including: Broker special event on site News releases Corporate user presentations Mailings to prospects E. Investigate the adequacy of soils, utilities, and street systems for the Master Plan. F. Review and comment upon the adequacy of the existing indirect source permit and environmental assessment worksheet for the Master Plan implementation. G. Review and comment upon the adequacy of existing ordinances to facilitate development of the Master Plan. H. Investigate the status of title, and review existing environmental reports furnished by the Authority regarding any hazardous substances on the Redevelopment Property. I. Every 90 days provide a written activities report to the Authority which describes the Redeveloper's activities pursuant to this Agreement. J. Cooperate with the City and Authority in reasonable and appropriate ways. Section 3.2. Authority Responsibilities. The Authority shall be responsible for the following: A. Indirect source permit and associated traffic analyses (amended and /or reactivated original) for the Redevelopment Property. B. Prepare any necessary environmental assessment worksheet, environmental impact statement or modification thereof. C. Conduct any additional required environmental investigation. D. Provide any necessary infrastructure changes, including street and intersection improvements, due to the Master Plan. 9 14E C E. Refer all third party inquiries regarding use, availability, and development potential of the Redevelopment Property to the Redeveloper. F. Recommend changes to City ordinances to facilitate development consistent with the Master Plan. G. Cooperate with the Redeveloper in reasonable and appropriate ways. H. Conduct a comprehensive review of Redeveloper's performance under this Agreement on at least September 1, 1996 and March 1, 1997. Section 4.1. Contract for Private Redevelopment. Provided that this Agreement is not in default and any time after Authority approval of the Redeveloper's Master Plan, at either Party's request, the Parties shall negotiate in good faith and execute the Redevelopment Contract within forty -five (45) days after the request. The Redevelopment Contract shall address the issues involving the development of the Redevelopment Property including the following: A. The Purchase Price B. Timing of the Minimum Improvements C. Composition of the-Minimum Improvements D. Timing of any site improvements or public improvements E. Redeveloper guarantees F. Duration G. Application of Purchase Price Payments to structured parking Section 5.1. Termination. This Agreement shall terminate as follows: A. If by August 1, 1996 the Redeveloper has not completed the program elements as outlined in the Marketing Plan or this Agreement. B. If the Redeveloper, has not commenced construction of an office building in the Office Tract by August 1, 1997, said time to be extended by Unavoidable Delays. The August 1, 1997 date shall be extended to November 1, 1997 if the Redeveloper has provided a letter of intent, lease or commitment to lease for an office building. 0 14F C. If the Parties have not executed a Redevelopment Contract by August 1, 1997. Section 5.2. Effect. The Parties agree that upon termination of this Agreement they shall have no further obligation to each other except as provided for in this Agreement and the Parties further agree to execute any document reasonably necessary to give effect to a termination. Section 6.1. Additional Provisions: A. The Redeveloper shall not assign this Agreement. B. The Redeveloper shall hold the Authority and the City, their agents, officers and employees harmless from any of the Redeveloper's acts or the acts of those operating under its direction with regard to marketing, development, construction, sale and all other activities contemplated by this Agreement. C. The Parties are not partners in the development of the Minimum Improvements or in any activities contemplated by the Agreement. D. If requested.by the Authority,.the Redeveloper shall provide evidence of a general liability insurance policy in an amount of one million ($1,000,000) per person and two million ($2,000,000) per occurrence naming the City and the Authority as insured parties and which requires a 30 -day written notice of cancellation to the City and the Authority. IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and the Redeveloper has caused this Agreement to be duly executed on or as of the date first above written. 7 14G Dated: THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By Its Chairman And by Its Executive Director STATE OF MINNESOTA ) ss COUNTY OF ANOKA ) On this day of 199_ before me, a notary public within and for Anoka County, personally appeared and.' to me - personally. known who by me duly sworn; did say that they are the Chairman and Executive Director of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a political subdivision of the State of Minnesota, and acknowledged the foregoing instrument on behalf of said Authority. Notary Public Authority Signature Page — Contract for Exclusive Negotiations 0 14H Dated: MEPC American Properties, Inc. By STATE OF MINNESOTA ) ) ss COUNTY OF ) Its On this day of , 199_ before me, a notary public within and for County, personally appeared , the of MEPC Properties, Inc., a corporation, and acknowledged the foregoing instrument on behalf of said corporation. Notary Public Redeveloper Signature Page — Redevelopment Contract 141 _ . w L -00-RE LAKE 14J SCHEDULE B FRIDLEY MARKETING PROGRAM Press Release: Signage: Flyer Created and Mailed Users & Brokers: Focus Group for Office Users: Master Plan Review: Press Release: Direct Mail Piece to Brokers: Broker Event on Site: Quarterly Updates: Upon execution of the Agreement Revise signage showing Redeveloper as contact January 1996 January 1996 January 1996 Planning review would commence after information is provided by the first focus group. Redeveloper will then present the preliminary Master Plan to the City and Authority for Authority response and review by March 15, 1996, the Authority shall review and or approve or modify the preliminary Master Plan by April 15, 1996. Upon review and approval of preliminary Master Plan May 1996 June 1996 Redeveloper will provide updates to the Brokerage community on a quarterly basis. This development project will be in the annual Redeveloper vacancy update Redeveloper would meet with the Authority quarterly to provide project updates Continuing marketing efforts would be evaluated and put in place as needed after July 1, 1996. 14K Community Development Department U HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: January 5, 1996 j TO: William Bums, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Southwest Quadrant Update Rottiund has expressed a concern about the typical HRA requirement for payment of prevailing wages for construction. Since December, staff has been working with Todd Stutz to identify what the Department of Labor stipulates for hourly rates for construction employees. Stutz obtained this information recently, and advised staff that he will present his position to staff on Monday, January 8, 1996. It is anticipated that if the prevailing wages are higher than what Rottiund originally anticipated, they may ask for a reduction in the land price. We will have an update for you at Thursday's HRA meeting. In the meantime, Jim Casserly has forwarded to Stutz the HRA's position on the sale price. Casserly developed a formula for the land sale price per unit. Casserly has also compared the lot sale prices with other projects in the metro area, and we have determined that the sale price is consistent with the fair market value of other townhome projects. The total proposed land sale price based on the density at this time is $1,180,650. I have attached the memo from the December agenda which describes the revised site plan. A public hearing before the City Council will occur on January 22, 1996. No action is necessary by the HRA at this time; however, we will update the HRA about the prevailing wage issue. BD /dw M -96-13 15 Q Community Development Department l.� HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 8, 1995 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Southwest Quadrant CITY COUNCIL RECOMMENDATION The City Council discussed the Southwest Quadrant at its workshop session on November 20, 1995. In preparation for that meeting, the two Councilmembers who wanted to retain the condominiums were asked to identify their concerns if the senior condominiums were eliminated from the development plan. Abandoning the senior condominium element seemed to equate to not providing affordable owner - occupied housing for seniors in the community. Therefore, Rottlund was asked to develop another housing style which would appeal to seniors in an affordable price range ($90,000 - $120,000). Rottlund developed what ended up being three additional site plans. Todd Stutz from Rottlund Homes attended the meeting, and a lengthy discussion occurred. The third alternative (which has become known as Option #6) was agreed -upon by the City Council and is recommended to the HRA. A copy of the proposed site plan is included in your packets. The plan can best be described in two parts. The first part is the area east of 3rd Street and immediately adjacent to University Avenue; this area would contain 62 units of a three - story product. Four eight -unit buildings are proposed in the southeast part of the site, and then 30 units of three -story townhomes are proposed around the proposed plaza area in the northeast part of the site. The second part, or the west side of 3rd Street, would be three groupings of townhomes: A) No more than 20 homes selling between $90,000 - $110,000, B) 20 homes selling between $110,000 - $120,000, and C) 20 homes selling between $120,000 - $130,000. 15A Southwest Quadrant December 8, 1995 Page 2 It is the City Council's intent that the 20 homes in the $90,000 - $110,000 price range would be one -story townhomes, and that the homes in the other two price categories would be a mixture of one- and two -story homes depending on what the market dictates. Stutz was amenable to the proposed plan, but wanted to meet with myself and Jim Casserly to start identifying the key aspects of the development contract. Of particular concern to Stutz is the prevailing wage requirement in the development contract. Casserly and I will be meeting with Stutz on Friday, December 8, 1995 to outline the financial issues to be addressed in the development contract. In addition, Casserly's office is working on a revised cash flow analysis based on a revised tax increment projection, land sale negotiation, and revised phasing plan beginning in 1996. This will be distributed at the HRA meeting. OTHER RELATED ISSUES In the meantime, staff has initiated the process with Anoka County to request them to pay for 1/4 of the Mississippi Street improvement cost. The owners of Holly Center have agreed to pay for up to 1/4 of the intersection cost via a special assessment procedure. The developer's share will be negotiated through the land sale price. Therefore, the cost to the HRA instead of $160,000 as originally anticipated would be reduced by 3/4. Anoka County hopes to respond to our request by the second meeting in January. Before final plans and drawings are prepared, however, Stutz wants to begin resolving some of the details on the development contract. After our meeting on Friday, December 8, 1995, staff will have an updated report for the HRA at Thursday's meeting. The Remedial Investigation plan for the former Fast Lube site has been completed and submitted to MPCA. The plan recommends two more quarterly sampling events be conducted at the four monitoring well sites. If contaminant levels continue to be at low levels, the consultant may request the MPCA issue a closure letter. The plan found no contamination risk to other wells in the City. Typical remediation procedures such as soil venting and groundwater pumping may not be necessary, according to the consultant. RECOMMENDATION Staff would like the HRA to review the revised plan, the revised cash flow, and provide direction to staff and the developer if 15B Southwest Quadrant December 8, 1995 Page 3 the plan should be pursued. As of this time, there is a unanimous conclusion from the City Council that this plan is acceptable to them and addresses their concerns. BD /dw M -95 -609 15C Community Development Department D HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: January 5, 1996 � TO: William Bums, Executive Director of HRA loi y FROM: Barbara Dacy, Community Development Director Grant Femelius, Housing Coordinator SUBJECT: Proposed Revision to Home Mortgage Assistance Program Background As you know, over the last two years we have struggled to make this a successful program. Despite several modifications intended to make the program more flexible and attractive, only one loan has been made to date. Even worse, last summer Bank of America Mortgage backed out of its commitment and we haven't been able to recruit a replacement lender. As a result, we have ceased marketing the program and taking applications. In recent months staff contacted several lenders to determine why the program isn't working. Representatives from Northeast State Bank, First Bank, Norwest Bank, Fannie Mae, and the Minnesota Housing Finance Agency were contacted as part of an informal survey. The following is a brief summary of the problems with HMAP and a list of some potential opportunities to replace the program. Problems with HMAP Based on our research, most lenders had not worked with the Fannie Mae purchase/rehab program and cited the following reasons: 1) Most lenders specialize in purchase money transactions which are far simpler to process and less time consuming than the purchase /rehab mortgages. Because these loans involve rehabilitation work they tend to be more time intensive and riskier than regular mortgage loans. Usually the rehab is completed several months after the loan is closed, meaning added risk especially if the work is not done on time. 16; Home Mortgage Assistance Program January 5, 1996 Page 2 2) Several lenders cited Fannie Mae's stringent underwriting standards as an obstacle to making purchase /rehab loans. The most common problem cited is Fannie Mae's Loan- to-Value (LTV) ratio. Fannie Mae caps the maximum LTV at 90% of the property's "after-improved" value. In many situations the purchase price coupled with the cost of the improvements exceed 100% of the after improved value. For these programs to work LTV ratios of 110% to 115% are necessary. Representatives from both MHFA and the local Fannie Mae office confirmed that these programs have been difficult to promote to lending institutions for the reasons cited above. The local Fannie Mae office has been focusing its efforts on the "purchase only' loan products rather than the combination programs. First Bank has tried to work with the Fannie Mae Rehab Programs in the past, but switched to a 'portfolio' program which has been more workable. The program called 'Home Advantage' does provide purchase /rehab loans but is limited to low income census tracts with populations below 50% of median income. As a result, most of the loan activity is occurring in the inner city and suburban areas for the most part have been excluded. Northeast State Bank is not approved to do Fannie Mae loans and would have to make arrangements through an undisclosed correspondent lender. After several conversations with them, the bank was less than enthusiastic about the program. Norwest Bank has not worked with the Fannie Mae Purchase /Rehab programs but recently began working with the FHA 203 (k) program and expressed interest in promoting the program here in Fridley. A description of the program is found below. Replacing HMAP After conducting the survey it seems that the most practical solution is to be pursue the FHA 203 (k) and other non - Fannie Mae programs. These programs offer greater flexibility, but can also accomplish the objective of providing purchase /rehab financing. Home Mortgage Assistance Program January 5, 1996 Page 3 Potential programs to consider include: Option 1: FHA 203 (k) Program Under this program borrowers can get an FHA insured mortgage up to $116,500 for the purchase (or refinance) and rehabilitation of 1 to 4 unit properties. The advantage is that the borrower can get all of the of funds to buy and rehab a property and only put 5% down. The lender is in a good position because the loan is fully insures! by FHA at closing and before the rehab work starts. More importantly the maximum LTV is 1150/a of the after- improved value of the home. Perhaps the only down side to this program is that FHA rules prohibit second mortgages on these properties, meaning that the HRA could not secure any financing for down payment or closing costs. Assistance would probably have to take the form of a grant or unsecured loan. Option 2: MHFA Purchase Plus Program This program is almost identical to the FHA 203 with a few differences. MHFA has tried to promote the program in the past without much success. However, they are currently revising the program and have some lenders on board. MHFA's role is to provide technical assistance to the lender and act as an Direct Endorser (DE). DE status allows MHFA to get FHA mortgage insurance for the loan. At this time we feel it would be prudent to pursue the MHFA program. This would be an opportunity to leverage other funds while not duplicating efforts by MHFA. However, in the event that the MHFA program does not meet our needs, we would recommend establishing a fund (est. $50,000 for 1996) for an HRA- sponsored FHA 203 (k) program, possibly in conjunction with Norwest Bank. Unless otherwise directed, we will continue to research Option 2 and develop a final recommendation for the February HRA meeting. GF/ •. m1n; Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: January 5, 1996 TO: William Bums, Executive Director of HRA '0160 FROM: Barbara Dacy, Community Development Director SUBJECT: Frank's Used Car Site Redevelopment Update Two of the HRA members were present at December's meeting. Staff reviewed the proposed options for redevelopment for the Frank's Used Car site and potential redevelopment options for the northeast comer of 57th and University Avenues. The general consensus was to pursue redevelopment of the Frank's Used Car site for at least 22 owner - occupied townhomes. The City Manager /Executive Director is in the process of negotiating with the two single family homeowners to the south of Frank's Used Car site. In the meantime, the Planning Division will be preparing a neighborhood meeting process to advise the neighborhood of the proposed plan and then staff will come back to the HRA for authorization to prepare an RFP for development of the property. It was agreed that the Frank's site be redeveloped first, and then the site at the northeast corner of 57th and University Avenue. BD /dw M -96-15 E::7 Community Development Department D HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 12, 1995 i TO: William Burns, Executive Director of HRA 44 FROM: Barbara Dacy, Community Development Director SUBJECT: Option to Elect Local Contribution or LGA /HACA Reduction on Tax Increment Financing Districts This is to update the Housing & Redevelopment Authority on the recent State law change pertaining to LGA /HACA losses for TIF districts created after June 30, 1994. A summary memo from Jim Casserly is attached for background information. The 1995 Legislature amended the TIF statutes to provide an option to the LGA /HACA deduction. A "local contribution" can be made instead of sustaining the traditional LGA /HACA deduction. If the City elects to make a local contribution, it must be made from "unrestricted monies of either the Authority or the City" including general funds, property tax levies, or federal or state grants in aid. The contribution cannot be made, directly or indirectly, with tax increment or developer payments. The local contribution must be used to pay project costs. The City Council at its November 13, 1995 meeting elected to provide the local contribution on TIF #13. This election provided a savings of $226,163. The LGA /HACA deduction on TIF #13 (Satellite Lane Apartments) approximated $344,948. The City Council chooses the option because it creates the district. Unrestricted revenue from the Authority includes interest accruing on tax increment loan repayments and other revenue, loan repayments, rental income, and other non -tax increment funds. Pertaining to TIF #13, the land sale to Rottlund at its fair market value also represents an unrestricted revenue source. In addition, TIF #13 will generate approximately $158,380 in administrative fees which may be taken by the City for its eligible administrative expenses. We wanted to bring this issue to the HRA's attention, because it does represent a policy change in the legislature. BD /dw M -95 -616 Casserly Molzahn & Associates, Inc. Suite 1100 Southpoint Office Center • 1650 West 82nd Street • Minneapolis, Minnesota 55431 -1447 Office (612) 885 -1298 • Fax (612) 885 -1299 MEMORANDUM TO: City of Fridley Attention: Barbara Dacy FROM: James R. Casserly Mary E. Molzahn RE: Election of Local Contribution or LGA /HACA Reduction DATE: November 2, 1995 As you are aware, the 1995 Legislature provided Authorities with the option of making a local contribution rather than sustaining the traditional LGA /HACA loss for TIF Districts in which certification was requested after June 30, 1994. For TIF Districts approved subsequent to July 1, 1995 the election is made in the TIF Plan and for TIF Districts approved prior to July 1st the election must be made by resolution no later than December 31, 1995. After reviewing the City's Redevelopment Project No. 1, it appears that this option applies only to TIF District No. 13, the Rottlund project. Enclosed you will find an analysis comparing the potential local contribution and the potential LGA /HACA loss. All assumptions used for this analysis are the same as for the TIF Plan with the exception of the term. For this analysis we assumed the maximum term of 25 years of tax increment. This assumption is based on the possibility that the City may maintain the TIF District after the Revenue Note has been paid. As you can see on the enclosed analysis, over the 25 year period potential aid reduction approximates $344,948, while the potential local contribution approximates $118,785. The difference is significant and we recommend that the City elect the local contribution. Based on these assumptions, approximately $158,380 will be generated in admin fees over the life of the TIF District and may be taken by the City for its eligible admin expenses. Payment for these expenses are deposited in the City's general fund. If the City elects to make a local contribution it must be made from unrestricted monies of either the Authority or the City, such as general funds, property tax levies, or federal or state grant -in -aid which may be spent for general government purposes. It may not be made, directly or indirectly, with tax increments or developer payments. The local contribution must be used to pay project costs and cannot be used for general government purposes or for improvements or costs the Authority or the City planned to incur whether the project proceeded or not. If the Authority or City requests a contribution from other local government entities that will benefit from the TIF District's activities, these contributions will reduce the local contribution. Additionally, if the state contributes to the project costs through a direct grant or similar incentive, the required local contribution is reduced by one -half of the dollar amount of the state grant or other incentive. The City must qualify annually for this exemption. Both of the following activities are required for a TIF District, in this instance a Redevelopment TIF District, to remain exempt from the aid reduction provisions. 1. make a local contribution of 7.50 of the tax increment generated; and 2. submit a report, by March 15 to the Commissioner of Revenue confirming the amount of the contribution made in the preceding year and the TIF District for which the contribution applies If the City elects not to make a local contribution, the reduction in LGA /HACA is automatic. If it elects to make the contribution, a resolution is required for City Council approval, which we will need to prepare and file. After you have had an opportunity to review the analysis and discuss the options, please advise how we should proceed. SAT1 CITY OF FRIDLEY. MINNESOTA « , r LGA/HACA: CITY CONTRIBUTION VS. REDUCTION IN AID 1,583,804 118,785 118,785 344,948 344,948 City Contribution 7.500% I.S.D. # 14 Sales Ratio 99.60 I.S.D. # 14 Total Rate 39.28 PREPARED BY CASS`'-= . v ,54HN & ASSOCIATES, INC. 22 -Sep -9 Estimated [ City Contribution j Captured [ Aid Reduction ] Tax Semi Annual Cumulative Tax Semi Annual Cumulative Increment Balance Balance Capacity Balance Balance 06/01/95 0 0 0 0 0 0 12-/01/95 0 0 0 0 0 0 06/01/96 0 0 0 0 0 0 12/01/96 0 0 0 0 0 0 06/01/97 0 0 0 0 0 0 12/01/97 0 0 0 0 0 0 06/01/98 16,161 1,212 1,212 28,215 0 0 12/01198 16,161 1,212 2,424 28,215 0 0 06/01/99 32,323 2,424 4,848 56,430 0 0 12/01/99 32,323 2,424 7,273 56,430 0 0 06/01/2000 32,323 2,424 9,697 56,430 695 695 12/01/2000 32,323 2,424 12,121 56,430 695 1,391 06101/2001 32,323 2,424 14,545 56,430 1,391 2,782 12/01/2001 32,323 2,424 16,969 56,430 1,391 4,173 06/01/2002 32,323 2,424 19,394 56,430 2,086 6,259 12/01/2002 32,323 2,424 21,818 56,430 2,086 8,346 06/0112003 32,323 2,424 24,242 56,430 2,782 11,127 1 2/01 /2003 32,323 2,424 26,666 56,430 2,782 13,909 06/01/2004 32,323 2,424 29,090 56,430 3,477 17,387 12/01/2004 32,323 2,424 31,514 56,430 3,477 20,864 06/01/2005 32,323 2,424 33,939 56,430 4,173 25,037 12/01/2005 32,323 2,424 36,363 56,430 4,173 29,209 06/01/2006 32,323 2,424 38,787 56,430 4,868 34,078 12/01/2006 32,323 2,424 41,211 56,430 4,868 38,946 06/01/2007 32,323 2,424 43,635 56,430 5,564 44,509 12/01/2007 32,323 2,424 46,060 56,430 5,564 50,073 06/01/2008 32,323 2,424 48,484 56,430 6,259 56,332 12/01/2008 32,323 2,424 50,908 56,430 6,259 62,591 06/01/2009 32,323 2,424 53,332 56,430 6,955 69,546 12/01/2009 32,323 2,424 55,756 56,430 6,955 76,501 06/01/2010 32,323 2,424 58,181 56,430 7,650 84,151 12/01/2010 32,323 2,424 60,605 56,430 7,650 91,801 06/01/2011 32,323 2,424 63,029 56,430 8,346 100,146 12/01/2011 32,323 2,424 65,453 56,430 8,346 108,492 06/01/2012 32,323 2,424 67,877 56,430 9,041 117,533 12/01/2012 32,323 2,424 70,302 56,430 9,041 126,574 06/01/2011 32,323 2,424 72,726 56,430 9,736 136,310 12/01/2011 32,323 2,424 75,150 56,430 9,736 146,047 06/01 /2012 32,323 2,424 77,574 56,430 10,432 156,479 12/01/2012 32,323 2,424 79,998 56,430 10,432 166,910 06/0112011 32,323 2,424 82,422 56,430 11,127 178,038 12/01/2011 32,323 2,424 84,847- 56,430 11,127 189,165 06/01/2012 32,323 2,424 87,271 56,430 11,127 200,293 12/01/2012 32,323 2,424 89,695 56,430 11,127 211,420 06/01/2011 32,323 2,424 92,119 56,430 11,127 222,547 12/01 /2011 32,323 2,424 94,543 56,430 11,127 233,675 06/01/2012 32,323 2,424 96,968 56,430 11,127 244,802 12/01/2012 32,323 2,424 99,392 56,430 11,127 255,929 06/01/2011 32,323 2,424 101,816 56,430 11,127 267,057 12/01 /2011 32,323 2,424 104,240 56,430 11,127 278,184 06/01 /2012 32,323 2,424 106,664 56,430 11,127 289,311 12/01 /2012 32,323 2,424 109,089 56,430 11,127 300,439 06/01/2011 32,323 2,424 111,513 56,430 11,127 311,566 12/0112011 32,323 2,424 113,937 56,430 11,127 322,693 06/01/2012 32,323 2,424 116,361 56,430 11,127 333,821 12/01/2012 32,323 2,424 118,785 56,430 11,127 344,948 1,583,804 118,785 118,785 344,948 344,948 City Contribution 7.500% I.S.D. # 14 Sales Ratio 99.60 I.S.D. # 14 Total Rate 39.28 PREPARED BY CASS`'-= . v ,54HN & ASSOCIATES, INC. 22 -Sep -9 a° 0 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: December 8, 1995 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Mastell Brothers Trailer Service, Inc. Request for Tax Increment Financing Assistance On Friday, December 1, 1995, I spoke with Debbie Gustafson regarding Mastell Brothers Trailer Service's request for tax increment financing. I advised her that although the proposed use is permitted in the M -3, Heavy Industrial, Outdoor Intensive district, it is staff's recommendation that the HRA not pursue assisting this particular type of company. I advised Ms. Gustafson of the City's recent effort initiated by the Mayor and the City Council to limit the trucking companies in the City of Fridley. This was accomplished by making trucking terminals permitted only in the M -3 district and prohibiting them from the typical M -1 and M -2 zoning districts. I advised her that the HRA prefers to prioritize its funds for manufacturing or other industrial uses which can provide significant job opportunities for persons in Fridley and the north metro area. I advised Ms. Gustafson that it would be difficult for staff to even present this item to the HRA with a negative recommendation and would prefer not to do so unless the company insisted upon it. Ms. Gustafson said that she would advise the client of my comments and stated that they may try to contact me or you for further discussion. At this point, I do not intend to place this item on the December HRA agenda, but will place a copy of this memo in the HRA packet. BD:ls M -95 -599 FEE:- 01 —'00 WEL.r 01:11 ID: TEL MO: BMDGEWi A TM FINANCIAL GROUP * * * MEMORANDUM * * TO:. BARBARA RACY JIM CASSERLY FROM: DEBBY GUSTAFSON DATE: NOVEMBER 14, 1995 RE: MASTELL BROTHERS TRAILER SERVICE, INC. TIF FINANCING REQUEST 9211 P02 We,are currently working with the above-referenced company to develop a new facility.in the City of Fridley. Specific information regarding this project is as follows:. l . Project Description. . The company is planning to acquire a 6.27. acre site which is located behind Sam's Club and is located on Main Street. It is planning to construct an 11;000 square foot metal, insulated facility which will have approximately 1,000 square feet of office space. The total project cost is estimated at approximately $600,000 of which $250,000 will be land acquisition. The legal description of the property is Lot 2, Block 1, Mar -Len Addition 2. Compmy Information, Masten Brothers has been in business for eight years and is owned by Rick and Troy Mastell (brothers). The company repairs semi trailers and also retrofits trailers and builds custom components for the trailers. Approximately 20 percent of the revenues are from general repair and 80. percent is from the custom work. 4243 Lancaster Lane NoA • Suite 1000 • Mlnneapoh& MN 55441 • (612) 550.9030 • (800) 642.6258 • (612) 550.9221 FAX FEB-01`00 WED 01:19 ID: TEL NO: 9211 P03 J, Cowrly November 14, 1995 NO. Two The partners lease space to their father who leases trailers. Approximately 10 percent are leased to over -the -road drivers and the other 90 percent is leased to other companies who need short-term storage or for other types of storage needs. ''This will be the third location of the business. It. originally leased a building in Blaine and was there for seven years. The building was sold and the company had to find another place to operate. A short- term lease was obtained in Roseville but it is a month -to -month lease and that building is for sale. Mastell Brothers is building a new facility to meet its specific needs but also to ensure a constant place to operate the business. The reason for the size of the lot is two -fold: 1) to make sure there is additional land available for future expansion and 2) to accommodate the trailer leasing business. The company currently employs 11 people and plans to have 19 within two years. The average wage for its employees ranges from $12.50 to $14.50 per hour. The company has an excellent reputation in its field and the nearest competition is in Morris, Minnesota. The company is starting with the 11,000 square foot facility; however, it is structuring the building so the it can be easily expanded. The owners see .significant growth for the company in the future. The company is requesting Tax Increment Financing assistance for this project. Ploase feel free to give me a call if you have any questions or need any additional information: M -GAm.: . _ EB -11` i=0 '=SAT 01:1.=; ID: Pot -W Fax Note 7672 to • Fat Cafr" TEL NO: MA -aTELL BROTHERS TRL SER 6137QX144S •Te'epv4 # /.JS f b� OLlr WsfDm tYS #231 P02 P.01 Toa y's Of.,# rev :cc �,y Fix M 6 t aye �t i ocpaaar. CID" ❑!ern �Golfappcp r Vu shd . bU BR, P.O. tloyoy PhOa b=se3P9o='! =" Wut County ROSd C Trailer ftr"ce, Inc. aotsm% rm 55:" p. • Bs. P Maur + s ft AMU" N19. - TEStaW his JES•ES BLAINE GAU A TRANSPORTATION MINNEAPOLIS (GOON RAPIOMIDLEY) LIGHTNING EXPRESS ANDOVER WAYNE VERNON CONSTRUCTION ASHLAND, WI 71AIIN CITY CONCRETE IENDOTA HEIGHTS (ST. PAUL.) CP RAIL OAK BROOK, IL • LT. GLISj C010PLETE LOGISTICS ST. PAAUU BFI TIRE RECYCLERS SAVAGE HAYDEN - WRPHY MINNEAPOLIS W ARCH FOODS PLYMOUTH PALMER WEST MINNEAPOLIS FIRST STATE TIRE DISPOSAL EAST BETHEL 3 .. �/"' = Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: January 4, 1996 TO: William Bums, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Draft 1996 HRA Budget The proposed 1996 budget contains four elements: 1. The cash flow and projection of annual, cumulative balances. 2. The HRA operating expense summary sheet and detail sheets. 3. The housing program summary sheet and detail sheets. 4. Summary of legal expenses. The budget is proposed only for discussion at Thursday's HRA meeting. Any suggestions, comments, or revisions will be made so that the budget can be approved at the February meeting. I. Cash flow and projection. A. Revenues As in the past, a conservative estimate about the amount of income has been prepared. The cash flow does not include the following: 1. The tax increment projection does not include any new development and a zero percent appreciation rate. 2. The income does not include any deferred loan amounts from rehabilitation programs. 3. The amount of income from the land sale to Rottlund is not included. 17 Draft 1996 HRA Budget January 5, 1996 Page 2 4. Any income from the land sale for development of Lake Pointe is not included. 5. Interest on the revenues is not calculated beyond the year 1999. 6. An HRA tax levy which could produce $150,000 in income is not assumed. B. Expenses Just as we are conservative in our projection of revenues, we tend to over - estimate our expenses. 1. The 1995 line item reflects the actual Southwest Quadrant expenses to -date. 2. The 1996 expenses are less because of the decrease of expenses related to the Southwest Quadrant redevelopment. 3. The operating expenses are larger because an increase in administrative charges is proposed, and additional costs related to the scattered -site acquisition program is proposed, as we are hoping to increase our acquisition activity from seven lots in 1995 to ten lots in 1996. 4. The housing program includes a $200,000 increase for scattered - site acquisitions, and a $220,000 increase for rehabilitation programs. 5. The project column for 1996 includes about $674,000 of additional expenses related to the Southwest Quadrant (Suh condemnation, Cherrywood Apartment condemnation, and several miscellaneous expenses). It also includes the cost for redevelopment of the Frank's Used Car site and redevelopment of the northeast comer of 57th and University Avenues. 6. School district payments are assumed to be paid through 2009. II. HRA operating expenses. 17A Draft 1996 HRA Budget January 5, 1996 Page 3 A. The administrative charges are proposed to increase from $185,154 to $243,322. The charges include a 30/a increase of administrative overhead, a micro computer charge, and a mini computer charge, as well as an increase in the personal service charges of City employees performing work for the HRA. As part of the 1996 City budget process, the Finance Department completed a time study based on work activity. We can provide additional detail on the results of the study for the HRA. B. Office and operating supplies. There is no proposed increase in the office and operating supplies. C. Other services and charges. Because a number of expenses have been eliminated due to the Southwest Quadrant, the budget has decreased from $1,043,864 in 1995 to $722,700. D. Capital outlays. Likewise, the budget for acquisition and other projects has decreased from $3,702,320 to $360,170. This is the area where the estimates have been included for the Frank's Used Car site redevelopment cost in 1996. E. Summary: The operating expenses have declined in total by 73 %, from $4,931,988 to $1,687,012. This level is similar to the 1994 actual expense level of $1,418,632. In other words, we are back to where we were prior to the Southwest Quadrant. III. Housing program A. Personal services. The total budget for the personal services has declined from $72,515 to $70,609. The 1995 budget originally had anticipated hiring both a rehabilitation inspector and a rehabilitation counselor. The proposed 1996 budget merely includes the rehabilitation counselor. B. Office and operating supplies. A minor increase is proposed from $1,000 to $1,500 to purchase any software needed by the rehabilitation counselor. Draft 1996 HRA Budget January 5, 1996 Page 4 C. Other services and charges. The budget is proposed to increase from $116,705 to $164,275 in order to provide additional funds for advertising the upcoming rehabilitation fair, to produce more "how to° rehabilitation pamphlets for the public, and finally to include the additional costs for acquiring and demolishing up to ten homes in the scattered -site program. Also included in this area is the proposed contract with CEE which comprises a total amount of $31,750. D. Capital outlays. A $200,000 increase is proposed in the scattered -site acquisition program, and the match amounts for the 1995 and 1996 HOME programs are also included. Finally, $2,000 is proposed to purchase a replacement personal computer for the Housing Coordinator. E. Housing rehabilitation programs. As discussed earlier in the agenda regarding the proposed contract with CEE, a redefinition of the housing programs is proposed. Hyde Park expenditures are still proposed, however, at a lesser amount than the 1995 budget. A proposed expenditure for the Hyde Park programs is a total of $500,000 (as compared to $930,000 in 1995). Approximately $650,000 is proposed to be allocated to the variety of single family and multiple family rehabilitation programs proposed by CEE to be administered City -wide. IV. Legal expenses. A. We are slightly over the estimated budget amounts from 1995 because of the legal issues surrounding the Southwest Quadrant redevelopment. Further, the 1995 budget did not include expenses for Casserly to prepare the proposed housing replacement program legislation. This was an oversight. Summary The cash flow and projection indicates a positive, cumulative balance for 1996 and beyond. Although the annual balance is showing a negative figure, it must be remembered that the revenue projections are conservative and do not include a number of revenue sources. There are adequate funds to pursue the programs contemplated in the proposed budget; however, the HRA must approve the 17C Draft 1996 HRA Budget January 5, 1996 Page 5 expenditures as they occur. Also to be remembered is that the housing rehabilitation programs are estimated on the high side to anticipate a high amount of activity. The budget will be revised as per the HRA direction at Thursday's meeting, and will be presented for final approval at the February meeting. BD /dw M -96-17 17D Housing Operating Expenses and Capital Outlay BUDGET SU14MARY BUDGET 1995 $520,970 Housing Rehab Programs $930,000 Total $1,450,970 HRA Operating Expenses $1,229,668 Capital Outlay $3,702,320 Total $4,931,988 17E BUDGET 1996 $793,884 $1,150,000 $1,943,884 $1,326,842 $360,170 $1,687,012 to LLI U m g U J a Z z a LL O z O U W 3 O cc M O J LL 2 a U as 8880 m O p0poz O O I�aN�m� N MMMA � C W >, C m oo f O o 9 0C 0 c�LL3o-41 8 88ffitm 0 cocoa r r r 3al898 083508880 Nmvb N a m L o O o O O 0 0 0 0 00000 0 O O 0 O O T T r T r N N N N N N N N N N N N N N co 0 a �m c m 0 90-2833 8 n a 8 a 0 A b m b CO., 00 m o ai f0 0 a u _ at N O m O m N at N T N b at O a7 r at m y ® c 0 m N N S S a tlf P :i:FaCS' r 10 O O T 10 l9 N m N n b b o r O m m m io m A O a1 a l9 T r r N N N N T T N N r e It m m m a C M 'o CL- ar oo- a« IP O So Fi m TR r o. 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LAKEPOINTE MKTING 10,000 NONPROGRAMMED STUDIES 25,000 OMEARA (SCHOOL DISTRICT AGREEMENTS) 2,500 NONPROGRAMMED AUDITS 10,000 REMEDIATION PLANS FOR SOIL CLEANUP (FAST LUBE) 20,000 PHASE I AUDIT WERNER'S 2,500 APPRAISAL WERNER'S FURNITURE 2,500 NONPROGRAMMED APPRAISALS 15,000 RELOCATION ASSISTANCE WERNER'S 3,000 NONPROGRAMMED RELOCATION ASSISTANCE 10,000 LARKIN HOFFMAN (LAKEPOINTE) 20,000 BENSHOOF (LAKEPOINTE) 40,000 171 s Y T BUDGET 1996 HRA OPERATING BUDGET PERCENT 1995 1996 INCREASE/ ACCOUNT DESCRIPTION BUDGET BUDGET (DECREASE) RELOCATION CONSULTANT FRANKS 2,000 237,500 4331 DUES & SUBSCRIPTIONS 425 425 LEVEL TEXT TEXT AMT 2 MN REAL ESTATE JOURNAL 100 AMERICAN ECONOMIC DEVELOPMENT COUNCIL 280 CORPORATE REPORT 25 TWIN CITY BUSINESS MONTHLY 20 425 4332 COMMUNICATIONS 875 875 LEVEL TEXT TEXT AMT 2 POSTAGE 700 PHONE 175 875 4333 TRANSPORTATION 600 600 LEVEL TEXT TEXT AMT 2 EDC OR NAHRO CONFERENCE 600 600 4334 ADVERTISING 33,000 18,000 45- LEVEL TEXT TEXT AMT 2 LEGAL ADS FOR TIF DISTRICT 2,000 LAKEPOINTE ADS 15,000 RFP FOR FRANK'S USED CARS 1,000 18,000 4335 PRINTING & BINDING 2,750 2,230 19- LEVEL TEXT TEXT AMT 2 RFP 500 COPIER ALLOCATION 230 ANNUAL REPORT IN CITY NEWSLETTER 1,500 2,230 4336 INSURANCE, NON - PERSONNEL 6,075 9,045 49 LEVEL TEXT TEXT AMT 2 EST14ATE FROM FINANCE 9,045 9,045 4337 CONFERENCES & SCHOOLS 1,600 1,600 LEVEL TEXT TEXT AMT 2 LUNCH AND BREAKFAST MEETING REIMBURSEMENTS 500 CONFERENCE LUNCHES 100 17J 17K BUDGET 1996 HRA OPERATING BUDGET PERCENT 1995 1996 INCREASE/ ACCOUNT DESCRIPTION BUDGET BUDGET (DECREASE) COMMUNITY DEVELOPMENT DIRECTOR CONF 500 MISCELLANEOUS 500 1,600 4338 UTILITY SERVICES 3,300 3,300 LEVEL TEXT TEXT AMT 2 LAKE POINTE ELECTRICITY FOR IRRIGATION 300 LAKE POINTE WATER CHARGES 3,000 3,300 4340 SRVS CONTRACTED NON -PROF 320,928 96,250 70- LEVEL TEXT TEXT AMT 2 COURIER SERVICE 250 LAKE POINTE MAINTENANCE SERVICE 21,000 LAKE POINTE TREE /FERTILIZER SERVICES 5,000 SPRINKLER MAINTENANCE 10,000 FRANKS AND SF HOMES DEMO PLUS STREET REMOVAL 55,000 WERNERS DEMOLITION 5,000 96,250 4341 RENTALS 4346 MISCELLANEOUS 18,000 37,829 110 LEVEL TEXT TEXT AMT 2 MCGLYNNIS PAY AS YOU GO EXPENSE 10,000 PFW /OSBORNE CROSSING PAY AS YOU GO EXPENSE 8,000 SCOTT LUND PROJECT PAY AS YOU GO 3,089 808 SCHROER /EAST RANCH ESTATES PAY AS YOU GO 16,740 37,829 4350 PAYMENTS TO OTHER GOVTS 315,046 315,046 LEVEL TEXT TEXT AMT 2 PAYMENTS TO SCHOOL DISTRICTS 315,046 315,046 ------ - ----- -- * OTHER SERVICES & CHARGES 1,043,864 ------- --- 722,700 ----- -------- 31- 4510 LAND 3,667,150 335,000 91- LEVEL TEXT TEXT AMT 2 WERNER'S FURNITURE 75,000 TWO HOMES FOR FRANKIS SITE REDEVELOPMENT 170,000 RELOCATION PAYMENT AND DEFERRED LOANS FOR FRANKS TWO HOMESITES 50,000 RELOCATION PAYMENT FOR WERNERS 40,000 335,000 4530 IMPS OTHER THAN BUILDING 25,170 17K HRA OPERATING BUDGET 1945 1996 ACCOUNT DESCRIPTION BUDGET BUDGET 2 PLAZA AREA TREE REPLACEMENT TWO SPARE DECORATIVE LIGHTS BANNERS FOR MISSISSIPPI STREET * CAPITAL OUTLAY '* CAPITAL OUTLAY *** CAPITAL OUTLAY **** AREA WIDE , BUDGET 1946 PERCENT INCREASE/ (DECREASE) - ----- - - - - -- 3,667,150 ------ -- - - -- ----- -- - - - - -- 360,170 90- 4,896,818 1,326,842 73- ------------ 4,896,818 ------ -- - - -- -- -- --- - --- -- 1,326,842 73- ------------ ------ 4,896,818 - - - --- ------ - - -- - -- 1,326,842 73- 10,670 4,500 10,000 25,170 17L. BUDGET 1996 HOUSING COORD FUND (262) 17M PERCENT 1994 1995 1995 1996 INCREASE/ ACCOUNT DESCRIPTION ACTUALS BUDGET ESTIMATE BUDGET (DECREASE) HOUSING PROGRAM 4101 FULL TIME EMPLOYEE -REG 34,856 37,320 36,004 39,666 6 4102 REGULAR 0/T PAY 4104 TEMPORARY EMPLOYEE-REG 875 21,560 15,600 28- 4105 TEMP EMPLOYEE- OVERTIME 4112 EMPLOYEE LEAVE 4,044 4,685 5,081 4,937 5 4120 MEDICARE CONTRIBUTIONS 576 609 595 873 43 4122 SOCIAL SECURITY CONTRIB 2,462 2,604 2,543 3,732 43 4125 ICMA CONTRIBUTION 1,705 1,882 1,824 1,998 6 4131 HEALTH INSURANCE 2,111 2,304 2,469 2,304 4132 DENTAL INSURANCE 180 180 180 180 4133 LIFE INSURANCE 51 51 51 51 4134 CASH BENEFIT 4150 WORKERS COMPENSATION 229 1,320 1,019 1,268 4- * PERSONAL SERVICES 47,089 72,515 49,766 70,609 3- 4220 OFFICE SUPPLIES 113 500 43 500 4221 OPERATING SUPPLIES 16 500 43 1,000 100 4229 WORK ORDER TRANSFER -PARTS * SUPPLIES 129 1,000 86 1,500 50 4330 PROFESSIONAL SERVICES 17,668 40,435 44,974 32,565 19- 4331 DUES & SUBSCRIPTIONS 105 200 353 500 150 4332 COMMUNICATIONS 512 1,500 584 2,000 33 4333 TRANSPORTATION 116 600 135 500 17- 4334 ADVERTISING 918 5,000 2,079 7,500 50 4335 PRINTING & BINDING 349 1,750 111 2,500 43 4336 INSURANCE, NON - PERSONNEL 4337 CONFERENCES & SCHOOLS 2,136 1,500 534 6,500 333 4338 UTILITY SERVICES 383 300 495 500 67 4340 SRVS CONTRACTED NON -PROF 33,093 30,670 36,422 94,460 208 4346 MISCELLANEOUS 4 4350 PAYMENTS TO OTHER GOVTS 1,870 34,750 60,915 17,250 50- * OTHER SERVICES & CHARGES 57,154 116,705 146,602 164,275 41 4510 LAND 302,962 315,000 236,293 518,000 64 4520 BUILDING 12,411 15,750 16,260 37,500 138 4560 FURNITURE & FIXTURES 2,000 * CAPITAL OUTLAY 315,373 330,750 252,553 557,500 69 ** HOUSING PROGRAM 419,745 520,970 449,007 793,884 52 17M HOUSING COORD FUND (262) ACCOUNT DESCRIPTION HOUSING PROGRAM 4101 FULL TIME EMPLOYEE -REG LEVEL TEXT 2 XXXxX 4102 REGULAR 0/T PAY T e BUDGET 1996 PERCENT 1995 1996 INCREASE/ BUDGET BUDGET (DECREASE) 39,666 4104 TEMPORARY EMPLOYEE -REG 15,600 LEVEL TEXT 2 INSPECTOR FOR REHAB PROGRAM 290 HOURS X S27/HR REHAB COUNSELOR 513.20/HR X 20 HRS/WK X 52 WKS 4105 TEMP EMPLOYEE - OVERTIME 4112 EMPLOYEE LEAVE 4,937 4120 MEDICARE CONTRIBUTIONS 873 LEVEL TEXT 2 HOUSING COORDINATOR REMODELING COUNSELOR 4122 SOCIAL SECURITY CONTRIB 3,732 LEVEL TEXT 2 HOUSING COORDINATOR REMODELING COUNSELOR ,125 ICMA CONTRIBUTION 1,998 4131 HEALTH INSURANCE 2,304 4132 DENTAL INSURANCE 180 4133 LIFE INSURANCE 51 4134 CASH BENEFIT 4150 WORKERS COMPENSATION 1,268 ' PERSONAL SERVICES 70,609 4220 OFFICE SUPPLIES 500 LEVEL TEXT 2 MISC. SUPPLIES FOR REHAB INSPECTOR AND REHAB GUNS ELOR 4221 OPERATING SUPPLIES 1,000 LEVEL TEXT 2 GENERAL OPERATING SUPPLIES REMODELING COUNSELOR ESTIMATOR SOFTWARE TEXT AMT 37,320 37,320 TEXT AMT 7,830 13,730 21,560 TEXT AMT 647 226 873 TEXT AMT 2,765 967 3,732 TEXT AMT 500 500 TEXT AMT 500 500 1,000 17umsks 4335 PRINTING & BINDING 2,500 LEVEL TEXT TEXT AMT 2 HOUSING PROGRAM BROCHURES 1,700 HOW TO REHAB BOOKS 300 BUILDING PERMIT BOOKS AT REHAB FAIR S00 2,500 4336 INSURANCE, NON - PERSONNEL 4337 CONFERENCES & SCHOOLS 6,500 LEVEL TEXT TEXT AMT 170 BUDGET 1996 HOUSING COORD FUND (262) PERCENT 1995 1996 INCREASE/ ACCOUNT DESCRIPTION BUDGET BUDGET (DECREASE) 4229 WORK ORDER TRANSFER-PARTS * SUPPLIES 1,500 4330 PROFESSIONAL SERVICES 32,565 LEVEL TEXT TEXT AMT 2 1) ATTORNEY FOR SCATTERED SITE PROGRAM 20,000 2) CASSERLY 14OLZAHN 5,000 (HRP, CEE AND LENDER AGREEMENTS, HOUSING PROG.) 3) FOCUS GROUPS 7,500 4) WELLNESS TESTING 65 32,565 4331 DUES & SUBSCRIPTIONS 500 LEVEL TEXT TEXT AMT 2 HOUSING AFFAIRS NEWSLETTER 350 REMODELING COUNSELOR TRADE JOURNAL 150 500 4332 COMMUNICATIONS 2,000 LEVEL TEXT TEXT AMT 2 INCREASED POSTAGE, PHONE, ETC. FOR REMODELING 2,000 COUNSELOR 2,000 4333 TRANSPORTATION 500 LEVEL TEXT TEXT AMT 2 INCREASED COST DUE TO REHAB COUNSELOR 600 600 4334 ADVERTISING 7,500 LEVEL TEXT TEXT AMT 2 REHAB FAIR 1,500 HOUSING PROGRAM 3,500 LOT SALES 2,500 7,500 4335 PRINTING & BINDING 2,500 LEVEL TEXT TEXT AMT 2 HOUSING PROGRAM BROCHURES 1,700 HOW TO REHAB BOOKS 300 BUILDING PERMIT BOOKS AT REHAB FAIR S00 2,500 4336 INSURANCE, NON - PERSONNEL 4337 CONFERENCES & SCHOOLS 6,500 LEVEL TEXT TEXT AMT 170 HOUSING COORD FUND (262) 1995 ACCOUNT DESCRIPTION BUDGET 2 SPONSOR REHAB FAIR NAHRO, MILE, MHFA TRAINING REMODELING COUNSELOR � w BUDGET 1996 PERCENT 1996 INCREASE/ BUDGET (DECREASE) 4338 UTILITY SERVICES 500 LEVEL TEXT 2 CHARGES FOR UTILITY SERVICES AT SCATTERED SITE PROPERTIES 4340 SRVS CONTRACTED MON-PROF 94,460 LEVEL TEXT 2 COMPUTER MAINTENANCE PRINTER MAINTENANCE DEMOLITION - 10 HOUSES WELL CAPPING - 10 HOUSES SECURING PROPERTIES - 10 HOUSES ENVIRONMENTAL REVIEWS - 10 HOUSES LOT SURVEYS - 10 LOTS APPRAISALS - 10 HOUSES CEE ORIGINATION FEES (100 DEFERRED LOANS) CEE INSTALLATION INSPECTIONS (100 DEFERRED LOANS) CEE MULTI - FAMILY BUILDING ANALYSIS (25 SLOGS.) 4.346 MISCELLANEOUS '350 PAYMENTS TO OTHER GOVTS 17,250 LEVEL TEXT 2 ADMIN FEES TO ACCAP FOR HOME IMPROVEMENT GRANTS 1996 MINNESOTA CITIES PART. FEES (REFUNDABLE) * OTHER SERVICES & CHARGES 164,275 4510 LAND 518,000 LEVEL TEXT 2 10 HOUSES REAL ESTATE TAXES ON PROPERTIES 4520 BUILDING 37,500 LEVEL TEXT 2 MATCH FOR 1995 & 1996 HOME PROGRAMS 4560 FURNITURE & FIXTURES 2,000 5,000 1,000 500 6,500 TEXT AMT 500 500 TEXT AMT 250 250 42,000 4,660 2,050 5,000 5,000 3,500 22,500 6,000 3,250 94,460 TEXT AMT 11,250 6,000 17,250 TEXT AMT 500,000 18,000 518,000 TEXT AMT 37,500 37,500 mi HOUSING COORD FUND (262) 1995 ACCOUNT DESCRIPTION BUDGET 2 REPLACEMENT PC FOR HOUSING COORDINATOR * CAPITAL OUTLAY ** HOUSING PROGRAM BUDGET 1996 PERCENT 1996 INCREASE/ BUDGET (DECREASE) 557,500 793,884 2,000 2,000 1iQ v W LEGAL SERVICES FOR THE HRA 1995 Amount Expended Amount Budgeted OPERATING FUND Casserly Molzahn $54,023.62 $50,000.00 Barna, Guzy* $38,721.57 $40,000.00 HOUSING FUND Casserly Molzahn $14,221.85 ** $ 2,500.00 Barna, Guzy* $141460.64 $11,000.00 * Does not include December 1995 billing ** A majority of these costs were related to Housing Replacement Program legislation which was not anticipated in the 1994 budget process. 17R