HRA 02/08/1996 - 6262HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, FEBRUARY 8, 1996
7:30 P.M.
PUBLIC COPY
(Please return to Community Development Dept.)
d
HRA RESOLUTION NO. 3 - 1996
A RESOLUTION AUTHORIZING THE SALE OF REAL
PROPERTY
WHEREAS, the Housing and Redevelopment Authority in and for the
City of Fridley (the "Authority ") has established the Scattered
Site Acquisition Program (the "Program ") to acquire and demolish
substandard residential properties for the purposes of removing
blight and improving neighborhoods; and
WHEREAS, the Authority has acquired a site (the "Property ") which
is now ready for redevelopment and legally described in Exhibit
A; and
WHEREAS, the Authority has established guidelines for selling the
Property and has requested bids from private parties to redevelop
the Property; and
WHEREAS, the Authority has conducted a public hearing as required
by Minnesota Statutes before selling the Property.
NOW, THEREFORE BE IT RESOLVED BY the Housing and Redevelopment
Authority in and for the City of Fridley, Minnesota as follows:
1. Sale of the property located at 5981 - 3rd Street N.E. and
legally described in Exhibit A shall be awarded to Oliver
Tam d /b /a Tams, Inc. for the price of $5,100.
2. Award of the sale is subject to the buyer entering into a
Sale and Development Agreement with the Authority to ensure
that the Property is redeveloped in accordance with the
Program guidelines.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY THIS 8TH DAY OF FEBRUARY, 1996.
LAWRENCE R. COMMERS - CHAIRMAN
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
w
HRA Resolution No. 3 - 1996 - Page 2
Exhibit A
Lots 29 and 30, Block 12, Hyde Park, Anoka County, Minnesota
y
4
n
HRA RESOLUTION NO. 4 - 1996
A RESOLUTION AUTHORIZING THE SALE OF REAL
PROPERTY
WHEREAS, the Housing and Redevelopment Authority in and for the
City of Fridley (the "Authority ") has established the Scattered
Site Acquisition Program (the "Program ") to acquire and demolish
substandard residential properties for the purposes of removing
blight and improving neighborhoods; and
WHEREAS, the Authority has acquired a site (the "Property ") which
is legally described in Exhibit A and due to current Fridley City
Code is substandard and cannot be redeveloped as a new home site;
and
WHEREAS, the Authority has determined that it no longer has
public use for the Property; and
WHEREAS, the Authority has conducted a public hearing as required
by Minnesota Statutes before selling the Property.
NOW, THEREFORE BE IT RESOLVED BY the Housing and Redevelopment
Authority in and for the City of Fridley, Minnesota as follows:
1. Sale of the property located at 683 Glencoe Street N.E. and
legally described in Exhibit A shall be awarded to Joe
Paulzine, 681 Glencoe Street N.E., for the price of $3,000.
2. Award of the sale is subject to the buyer completing the
administrative process to legally combine the parcels.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY THIS 8TH DAY OF FEBRUARY, 1996.
LAWRENCE R. COMMERS - CHAIRMAN
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
x
5
HRA Resolution No. 4 - 1996 - Page 2
Exhibit A
Lots 23 and 24 in Section or Block 'S', Riverview Heights, Anoka
County, Minnesota.
HRA RESOLUTION NO. 5 - 1996
A RESOLUTION AUTHORIZING THE SALE OF REAL
PROPERTY
WHEREAS, the Housing and Redevelopment Authority in and for the
City of Fridley (the "Authority ") has established the Scattered
Site Acquisition Program (the "Program ") to acquire and demolish
substandard residential properties for the purposes of removing
blight and improving neighborhoods; and
WHEREAS, the
is now ready
A; and
WHEREAS, the
Property and
the Property
Authority has
for redevelop:
Authority has
has requested
and
acquired a site (the "Property ") which
vent and legally described in Exhibit
established guidelines for selling the
bids from private parties to redevelop
WHEREAS, the Authority has conducted a public hearing as required
by Minnesota Statutes before selling the Property.
NOW, THEREFORE BE IT RESOLVED BY the Housing and Redevelopment
Authority in and for the City of Fridley, Minnesota as follows:
1. Sale of the property located at 623 Lafayette Street N.E.
and legally described in Exhibit A shall be awarded to
Whitney Homes, Inc. for the price of $18,000.
2. Award of the sale is subject to the buyer entering into a
Sale and Development Agreement with the Authority to ensure
that the Property is redeveloped in accordance with the
Program guidelines.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY THIS 8TH DAY OF FEBRUARY, 1996.
LAWRENCE R. COMMERS - CHAIRMAN
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
HRA Resolution No. 5 - 1996 - Page 2
Exhibit A
Lot 26, Block C, Riverview Heights, Anoka County, Minnesota and
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 on Lot 26.
HRA RESOLUTION NO. 6 - 1996
A RESOLUTION AUTHORIZING EXECUTION AND
DELIVERY OF A CONTRACT FOR PRIVATE
REDEVELOPMENT BY AND BETWEEN THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY
OF FRIDLEY AND THE ROTTLUND COMPANY# INC.
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
The Rottlund Company, Inc. (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 8TH DAY OF FEBRUARY, 1996.
LAWRENCE R. COMMERS - CHAIRMAN
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
6
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING
JANUARY 11, 1996
CALL TO ORDER:
Chairperson Commers called the January 11, 1996, Housing and
Redevelopment Authority meeting to order at 7:35 p.m.
ROLL CALL:
Members Present: Larry Commers, Virginia Schnabel, Jim
McFarland, John Meyer
Members Absent: Duane Prairie
Others Present: Councilmember Dennis Schneider
William Burns, Executive Director
Barbara Dacy, Community Development Director
Jim Casserly, Financial Consultant
Grant Fernelius, Housing Coordinator.
Craig Ellestad, Accountant
Dave King, Center for Energy and the
Environment (CEE)
Robert Van Nelson, 3144 Oakland Avenue
Oliver Tam, 1160 Fireside Drive N.E.
Dave Jellison, MEPC
Leslie Jowett, MEPC
APPROVAL OF NOVEMBER 9. 1995. HOUSING AND REDEVELOPMENT AUTHORITY
MEETING:
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the
November 9, 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. HYDE PARK HOUSING PROGRAM UPDATE
2. HOUSING PROGRAM UPDATE
3. SOUTHWEST QUADRANT BUDGET UPDATE
4. PROPOSED 1996 MEETING DATES
5. REVENUE AND EXPENSES
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 2
Mr. Ellestad distributed copies of his memo of January it with
additional expenses to be considered.
6. RESOLUTION AUTHORIZING PAY INCREASE FOR HRA EMPLOYEES
7. ESTABLISH PUBLIC HEARING FOR SALE OF VACANT LOTS AT 5981 -
3RD STREET AND 683 GLENCOE STREET N.E. FOR FEBRUARY 8. 1996
8. APPROVAL OF PLANS AND DEVELOPMENT AGREEMENTS WITH DIANNE
SCHOMMER, OLIVER TAM, AND WHITNEY HOMES
9. RESOLUTION AUTHORIZING EXECUTION OF DEVELOPMENT CONTRACT;
INDUSTRIAL INVESTORS L.L.P. JOHN ALLEN
10. APPROVAL OF CONTRACT WITH CASSERLY LAW FIRM
11. CONSIDER APPLICATION FOR 1996 MINNESOTA CITIES PARTICIPATION
PROGRAM
Mr. Fernelius stated there is a slight change in Consent Agenda
items 7 and 8 and distributed copies of revised information.
Under #7, one lot has been added at 623 Lafayette Street to the
list of properties that will considered at the public hearing.
This is directly tied to a change in agenda item #8 and the
property to be developed by Mr. Tam. Mr. Tam has re- evaluated
his decision on developing this property and does not feel he can
put a house on the property at a price that is profitable. He
wants to withdraw his offer. Based on that.information, staff
contacted the next highest bidder who is interested in developing
the property. Staff recommends the HRA approve the sale and
development agreements with Dianne Schommer and Whitney Homes as
presented in the regular HRA agenda packet and the resolutions
attached to staff's memo of January 11, 1996, which would
authorize the execution of those contracts. Staff recommends the
HRA approve the house plan design by Dianne Schommer which is in
the agenda packet. Whitney Homes will submit their house plans
for the next meeting. Staff recommends the HRA approve the sale
and development with Mr. Tam be approved for two lots which he
will develop on Second and Third Street, but reject his offer for
623 Lafayette and to modify the development contracts. Staff
recommends the HRA approve Mr. Tam's house plans for the two lots
he plans to develop.
Mr. Commers asked how this change came about.
Mr. Tam stated he was sorry about the confusion. After he got
the lot, he took it to his real estate agent who told him she did
not think this property would support the kind of house he
planned to put up. That is the main reason. After that first
discussion, the real estate agent then thought it would work. By
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 3
that time, staff had already contacted Whitney Homes.
Mr. Fernelius stated four bids were submitted for this property.
Mr. Tam had the highest bid, Whitney Homes had the second
highest. Based on the fact that someone who was interested if
the first bidder could not perform and the fact that Mr. Tam had
indicated he no longer wanted the property, Mr. Fernelius
contacted Whitney Homes to see if they were still interested in
buying the property. After that conversation, Mr. Tam contacted
Mr. Fernelius stating he wanted to develop the lot. Mr.
Fernelius stated he was in an uncomfortable position because he
had already offered the property to someone else. In
conversation with Mr. Tam, he was comfortable with that and
realizes he will lose his earnest money deposited on that
property.
Mr. Commers asked how firm the offer was with the second bidder.
Mr. Fernelius stated the offer was very firm.
Mr. Commers stated he had questions regarding the Revenue and
Expenses and would like to remove this item from the Consent
Agenda.
OTION by Ms. Schnabel, seconded by Mr. McFarland, to approve the
consent agenda with the exception of the Revenue and Expenses.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
ACTION ITEMS:
12. CONSIDER APPOINTMENT OF HRA REMODELING COUNSELOR
Ms. Dacy distributed copies of additional information regarding
housing programs. Councilmember Schneider was invited to listen
to this discussion and discussion of the next agenda item. The
City Council is a strong advocate of the programs.
Ms. Dacy reviewed the handout showing blight and decline and ways
to attack the problem. Staff is trying to put together a
comprehensive attack on blight and decline. The two elements
they will be talking about are remodeling or rehabilitation
counselors and housing rehabilitation. Mr. Fernelius is doing
outreach with the focus groups and meeting with realtors. He is
also coordinating the rental inspection program, assisting in
planning efforts, organizing the first home buyer program, and
working on the scattered site acquisition program which then
brings us to housing replacement.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 4
Ms. Dacy stated staff is trying to approach the programs in a
customer - service type of model. A rehab project can be something
simple taking two to three months or it can be as complex as 10
to 18 months. The key is in the initial phases. The rehab
counselor is key in the pre - planning phase. In order to get
people to get a rehab loan, it is important to work with the
homeowner to make the decision on exactly what they want to do.
The rehab counselor needs to educate people. In the CEE example,
they have a program for one -stop financing.
Mr. Fernelius stated an obvious question is why the necessity for
a rehab counselor. Staff's experience has shown in the past few
years that many of the people we deal with do not always have
knowledge and understanding of home improvement projects and what
is involved in these projects. Typically when a homeowner comes
in, they have not explored everything that is necessary to plan
and organize a rehab project. As a result, things sometimes drag
out. The rehab counselor is the focus to help people through the
process. In addition, this service will also tie together the
other programs and services within the Community Development
Department. Besides information on home improvement projects,
the rehab counselor will also be providing information on housing
programs; make referrals to the building inspection department
and code questions, permits, etc.; and work on planning and
zoning issues that may come up. In addition, this also provides
an opportunity to have face -to -face contact with our customers at
a convenient time in their homes. It fills a gap in the existing
services through the housing program and improves the overall
quality of service and, hopefully, customer satisfaction.
Mr. Fernelius stated this was a position identified in the 1995
goals and objectives. Because of other priorities, staff were
not able to implement it so they are beginning to implement this
in 1996.
Mr. Fernelius stated a wide array of services will be offered
including in -home property evaluation and input on the
improvements to make, value -added improvements, and code required
improvements. The rehab counselor would help homeowners assess
whether they could do the projects themselves or bring in a
contractor. Other issues include the design and aesthetic
considerations, evaluating the cost effectiveness, and following
that up to see if there is any other assistance or services
needed. Other activities including working on a remodeling fair
to be held this spring. While this is a lot of work, it is also
an exciting opportunity to display the programs in Fridley and to
help residents to improve their properties.
Mr. Fernelius stated other concepts discussed at the staff level
could include the actual rehab of a Fridley rambler, having an
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 5
energy efficient concept home, promotion of the purchase rehab
program, and a cable TV rehab program. There could also be a
tool lending library and home remodeling resource center. Other
ideas include a computer kiosk where residents could come into
City Hall and access a computer to find about programs and
provide information on home improvement issues. There is the
potential to develop some type of an on -line service and /or a
drop -in center for help with remodeling questions. Staff have
also discussed developing a voucher program for reduced rate
rentals for tolls and equipment for those who do their own work.
Mr. Fernelius stated the position is part -time. This an
extremely important position as well as a technical position.
The hourly rate is $15.00 with a cap of 20 hours per week. For
1996, $15,600 is budgeted to provide this service. The service
would be free to the public.
Mr. Fernelius stated, in terms of the search process, the
position was advertised in the fall of 1995 and 26 applications
were received. Three were interviewed and Mr. Robert Van Nelson
has been selected. He has a Bachelor's Degree in Architecture
and Environmental Design. He is currently working for the
Westside Neighborhood Services in St. Paul as a rehab advisor.
Prior to that, he worked as a remodeling contractor so he knows
the remodeling business and has worked as a carpenter. He has
experience with computers and software programs. Mr. Van Nelson
is at the meeting and available to answer questions. Staff
recommends his appointment to the position of remodeling
counselor. He can begin work on February 12.
Mr. Meyer stated this is a part -time position. What does the
candidate do for the other 20 hours?
Mr. Van Nelson stated he is currently remodeling his Victorian
home on his own. In order to speed the process, his wife
suggested he scale back his work hours in order to work on the
house. This position will work out well for what he is looking
for at this time.
Mr. Meyer asked if this position would have regularly scheduled
hours.
Mr. Fernelius stated staff has identified up to 20 hours per
week. At a minimum, Mr. Van Nelson would be here for the
extended service hours from 5:00 p.m. to 7:00 p.m. The thinking
behind the position is the rest of time will be spent either in
the office or in the field making appointments with homeowners.
Initially, there would be more work in the office but over the
next several months he will be doing more and more in the field.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 6
Mr. Meyer stated the position is described with having two
facets. One is to work with homeowners making decisions, guide
the wise use of their money to accomplish the goal and make
decisions about the direction they want to go. The other part is
seems to be more of working with fairs, computers, etc. If we
had more than 20 hours per week, it would be interesting to do a
lot of other things. There could be the temptation to put the
majority of the hours into the other things and less time
actually spent with the homeowner.
Mr. Van Nelson stated he is primarily working in direct contact
with the homeowner. He spends most of the time outside of the
office either managing construction projects or working with
clients in developing the scope of the work. The smallest
portion was when the office became automated. Most of the time
is spent working with clients.
Ms. Dacy stated she could assure this is not a desk job. It is a
people job. In the interview process, staff was very concerned
about people skills. Initially, though, we need to get people
interested about our programs. A remodeling fair is a good way
to introduce Mr. Van Nelson to the job as well. The priority is
helping people.
Mr. Meyer stated he
excellent program.
tendency to spend a
not spend time with
hours. If there is
programs, that is si
thought this was an excellent idea and an
He is, however, concerned there may be a
lot of time on fairs, computers, etc., and
homeowners. This is a limited number of
a problem in getting people aware of the
3mething else that must be dealt with.
Mr. Fernelius stated this is not strictly self- interest about
promoting the programs. It is about investing in the community
and encouraging home improvement. Some of the folks we deal with
may not take advantage of any of the programs but staff and the
programs will be there in any event. If someone has other means
for paying for projects, they can do so. It is more than just
promoting our own programs. It is encouraging the whole idea of
home improvement. This person is to coach people through the
process. There will be follow up at appropriate times.
Mr. McFarland asked if the HRA had any liability if anything goes
awry.
Mr. Fernelius stated no. Staff are not project managers.
Mr. McFarland asked, if the demands of the position are such that
Mr. Van Nelson cannot do the work, will other staff fill in.
Mr. Fernelius stated other staff will share in the workload if
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 7
needed.
MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the
appointment of Mr. Robert Van Nelson as the Fridley Remodeling
Counselor.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
13. CONSIDER CONTRACT WITH CENTER FOR ENERGY AND THE ENVIRONMENT
FOR ADMINISTRATION OF CITY -WIDE HOUSING PROGRAMS AND
APPLICATION FOR FUNDING WITH MHFA
Ms. Dacy distributed copies of materials outlining some of the
advantages of working with the Center for Energy and the
Environment (CEE). Staff are excited about this approach. Staff
thinks this approach with CEE will work because of a competitive
interest rate of 5% and affordable monthly payments, one -stop
financing with a fast turn around, an emphasis on customer "cycle
of service" approach, a focused administration, 76% of the
households would be eligible, and new MHFA funds are available.
Ms. Dacy stated staff had not done this earlier because they had
assumed there would be a stronger role from banks and financial
institutions which did not happen. The advantage with CEE is
that their priority is housing. Staff was cautious in putting
the programs. Focus groups revealed a need to assist people
through the process. Programs were structured on what already
existed in the marketplace. The proposed approach is not being
done in other first ring suburbs, as far as she knows.
Ms. Dacy stated staff's goal is to do 100 loans in one year. The
entire MHFA activity in Anoka County for the last five years
totals 122 loans. Staff want to do 100 loans just in Fridley.
Mr. Commers asked, if there was no arrangement with CEE, how do
they do it. Can a person work directly with CEE?
Ms. Dacy stated CEE has operated in Minneapolis. CEE has not
contracted with a suburban community. Because of CEE's
experience in Minneapolis, staff is trying to bring them out to
Fridley.
Mr. Fernelius stated CEE is not working in other communities. If
someone wanted to apply for a home improvement loan, they would
have to contact a local lender to see if they carry the program
and then work through a bank. It would take quite a bit of
legwork on the part of a homeowner to find out about programs.
CEE will do promotion to make sure something gets done. In the
past, we have relied on lenders for this program which did not
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 8
work. Staff thinks this is a more proactive approach.
Mr. Fernelius stated CEE is a nonprofit organization based in
Minneapolis. CEE has been in business for 15 years providing
energy, environmental and housing rehabilitation services to
large utility companies, government agencies such as Fridley and
some neighborhood revitalization programs within the City of
Minneapolis, and private companies. In this time, they have
processed 8,000 loans totalling $25 million. They have a
knowledgeable and experienced staff to handle home improvement
financing. We began working with CEE in September, 1995, in the
Hyde Park area.
Mr. Fernelius stated the experience of working with CEE has been
positive. The idea of bringing CEE on board was the one stop
shopping to make it convenient for the borrower to come in. They
did not have to try to find out about different programs and try
to figure out what they might be eligible for. CEE would handle
that. The homeowner would fill out one application and CEE would
figure out what program would meet their needs. We have received
positive feedback from the residents in the Hyde Park area.
Since September, CEE did a targeted mailing, one workshop, 35
building analyses, closed four loans totaling $45,000 and have 31
applications in process. This is a time intensive process.
Home - owners are out trying to get bids, evaluating what they want
to do, and making those decisions. Once they do, they contact
CEE to close on the financing. CEE has had staff hours on
Tuesday and Thursday from 5:00 p.m.. to 7:00 p.m. for walk -in
traffic, and has also been able to do some loan closings at the
homeowner's residence.
Mr. Fernelius stated the HRA's role in the Hyde Park program has
been to provide deferred payment matching loans. This has been a
significant level of investment. In terms of existing programs,
staff has found banks somewhat reluctant to work with special
MHFA programs. The banks are not always close for many of the
homeowners so it is not always easy to come in and fill out
applications. We have no control over the interest rates on the
MHFA programs. We are competing to some extent with the banks on
the higher rates. There is also a need to get a grant or loan
for those who do not qualify due to their particular situation.
Existing programs have not been flexible enough in the
underwriting guidelines. CDBG and home programs have worked
quite well. Only one program is for rental property owners.
Mr. Fernelius stated a need exists for affordable home financing
in Fridley. Due to the potential investment needed to carry out
a citywide rehab program, there are some concepts we should be
following - use non -HRA dollars whenever possible; leverage HRA
dollars to maximize the total value or total improvements made in
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 9
the community; no longer provide the 30+ year deferred loans;
increase the loan volume; expand the market to include the middle
income market; offer attractive financing (5%) with flexible
terms to homeowners and landlords of up to $20,000 for up to 20
years; establish a revolving loan pool for owners with marginal
credit; and maintain the last resort program.
Mr. Fernelius stated CEE's role is to originate loans for
homeowners and landlords. CEE will be providing a free building
analysis to rental property owners. CEE is connected with
Minnegasco and some of their rebate programs so they do energy
audits. More is involved in doing an analysis of rental property
so CEE will focus on rental property and Mr. Van Nelson will be
focusing on single family properties. The HRA under this
proposal will only pay for loans that are actually made. CEE
will be assisting staff in negotiating with the Community
Reinvestment Fund (CRF), which is one part of the housing rehab
proposal. CRF will be buying some of the revolving loans so we
can recapitalize our loan pool. CEE will also assist staff is
utilizing MHFA programs that are available.
Mr. Fernelius distributed copies of the 1996 Single Family
Housing Rehab Programs and 1996 Multi- Family Housing Rehab
Programs which lists the target market, the programs available
for that market, and the HRA's role. Mr. Fernelius reviewed the
information for both single family and multi - family housing. CEE
would originate the multi - family funding.
Mr. Fernelius stated these programs have the market fairly well
covered and can serve more people in Fridley. In terms of the
budget implication, Hyde Park had a recommended investment of
$500,000 for the deferred loans. This could leverage up to 125
loans and an additional $250,000 in outside funds. These monies
will be paid back but at an uncertain date in the future. For
the citywide program, the recommended investment is $644,000,
which is broken down by the various programs. The revolving loan
fund and the interest rate write down fund will not necessarily
be repaid. These funds will leverage additional outside dollars.
That allocation of $300,000 could fund up to 372 loans or almost
$2 million in total improvements. If the goal is to do a lot of
loans and to make a lot of improvements in the community, staff
thinks this is a good way of doing it.
Mr. Fernelius stated staff recommends the HRA accept the proposal
by CEE to administer the citywide program and to execute a
contract for those services; and to authorize staff and CEE to
prepare an application for the community fix up fund and
community rehab program which are MHFA programs with application
deadlines in mid - February.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 10
Mr. King stated CEE is very excited about this initiative in
Fridley. He hopes the 100 loan goal is easily met. The intent
of CEE is to produce an aggressive marketing approach. CEE is
willing to be a sponsor in the housing fair and reduce the
administrative costs. The timing is better than it was for the
Hyde Park program. In September, there was not much initiative.
In the last few weeks, CEE has seen more interest in the program.
This is a nice time of year to start. He is confident CEE can
deliver a quality program for the HRA. CEE has been in this
business for a long time. Staff is experienced in working with
MHFA. In conversation with the MHFA, the proposal should be
funded. In the proposal, CEE will write the proposal to MHFA and
get the approval. One of the programs is a grant program.
Mr. King stated, prior to December 1994, CEE ran a program for
Minnegasco called the Operation Insulation Program. CEE did
energy analysis and did financing. The program ended in December
1994. Since that time, CEE has changed their focus on marketing.
They are doing several building fairs this year which is a good
marketing tool to get the word out. The biggest problem they
have is getting the word out. These programs are not available
to contractors. He thought 5% was a very marketable interest
rate.
Mr. McFarland asked if CEE went to the community or does the
customer come to them.
Mr. King stated they can go to the customer. The customer can
also fax information to them. When a person calls, CEE will tell
them what information to bring in and they can do everything
right there.
Mr. Fernelius stated, in our situation, we are requesting CEE
provide Tuesday evening hours and come out to take applications,
do loan closings, etc., so residents would not have to go to
downtown Minneapolis to get their financing.
Mr. McFarland asked how the activities of CEE would be
controlled.
Mr. Fernelius stated CEE would be responsible for administering
the program. Mr. Fernelius would have contact with them on a
daily basis, if necessary. He would review any loan that has the
interest written down. Staff work closely with CEE to make sure
there is no misappropriation of funds and that everything is
being done successfully. Mr. Fernelius is responsible for
oversight of the program.
Ms. Dacy stated CEE is currently under contract for Hyde Park
only. A new contract must be set up for this proposal. This is
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 11
a community -wide proposal. Once Hyde Park is done, staff will
come back to the HRA for the next area on which to focus. We
also need to include multi - family buildings.
Mr. Ring stated there is no cost to the HRA to originate a loan
for multi - family property. The interest rates are 4% and 6% and
CEE can blend those to get the 5 %. To address the concern about
controls, CEE will be fronting all loan funds. CEE will be
selling those loans to MHFA or CRF. Basically, that is the
control. If they do not buy the loan, CEE then must absorb it.
The HRA will be paying only for approved and purchased loans.
Ms. Schnabel asked, when the decision is made to loan money, to
whom is the payment made.
Mr. King stated the payment is made to the homeowner. CEE is not
allowed to deal with a contractor. To insure the funds are used
properly, there is a post - installation inspection. MHFA will do
a random inspection. If the work is not done, the loan is
considered in default immediately.
Mr. Fernelius stated most of the loans will be secured with the
mortgage so we would have a lien against the property. All loans
are secured financing. There are safeguards built'in.
Ms. Schnabel asked, out of the four loans that have been
approved, what kind of work is being done.
Mr. Fernelius stated work includes repair and /or replacement of
roofs, windows, heating, driveways, sidewalks, etc.
Mr. McFarland stated, on page 8 of the proposal, it states the
cost to the HRA for an average loan of $5,000 is $507.17.
Mr. Fernelius stated that is the write down costs of a loan from
8% to 5 %. There are fees built in also. The $832.17 is the
subsidy we would provide in order to make a $5,000 loan.
Homeowners would be making monthly payments based on the 5% rate.
If we set up a $250,000 loan pool and assuming the average loan
was $5,000 with an $832 subsidy per loan, we could create an
improvement pool of $1.5 million.
Mr. Commers asked what the total cost would be.
Mr. Fernelius stated the total cost in this case is the $250,000
which is the initial investment. That amount produces 300 loans
for $1.5 million. The total of $600,000 being spent is creating
a significant amount of value.
Mr. Commers asked if any of those funds would come back.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 12
Mr. Fernelius stated $300,000 would not. The revolving loan fund
and the interest rate write down money will not come back. The
last resort programs would come back at some point. About half
would be recouped.
NOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the
contract with the Center for Energy and Environment (CEE) to
administer a city -wide housing rehab loan program.
Ms. Schnabel referred to page 9 where it states a loan purchased
through the HRA may want offset the fee by charging an
origination fee to the borrower.
Mr. Fernelius stated this was a suggestion on the part of CEE as
a way to reduce our costs. We would not do that.
UPON A VOICE VOTES ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
INFORMATION ITEMS:
14. LAKE POINTE UPDATE
Ms. Dacy introduced Mr. Dave Jellison and Ms. Leslie Jowett who
will provide an update on the Lake Pointe site.
Mr. Jellison thanked the HRA for selecting MEPC to work on Lake
Pointe. He will update the HRA on what they have been doing and
their plans for the future. He has reviewed the agreement and a
part of that is a schedule of activities for marketing. Ms.
Jowett will provide a review of their marketing activities.
Ms. Jowett stated the first thing to be completed in January was
signage which is in process. She provided a mock up of the sign
with the Lake Pointe logo. This sign indicates Phase I which
they are excited about.
Ms. Jowett stated a flyer is being printed now and will be sent
to 300 brokers in the cities and also to 200 prospective tenants.
That will be done within the week. She distributed copies of the
flyer.
Ms. Jowett distributed copies of a press release which had been
prepared. Focus groups will be starting to feel out prospective
tenants to see if there is an interest in an office park.
Ms. Jowett stated they have had a meeting with an architect and
have started the process for a master plan. The leasing people
are very anxious to have something to take to the clients to
sell.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 13
Mr. Jellison stated they have selected Ed Farr and Associates as
the architects. Mr. Farr was a managing partner for the Wilson
Jenkins office that was moved here from Chicago. He designed
many of the Trammel Crowe buildings. He designed the building
now under construction for Cyber Optics in Golden valley. He is
putting together a master plan. When MEPC started the project,
we had to decide to start somewhere. They will start at the
westerly portion of the site with a prototype building for the
master plan. They are looking at a 5 -6 story building with ramp
parking with 18,000 to 20,000 square foot floor plates. They
will design that building along with the master plan for the
entire park, but they need something to start with. MEPC will
take this out to prospective tenants featuring this as the first
building for the park. If we end up with a major user, MEPC will
regroup and work with them. As Mr. Farr goes further with the
master plan, MEPC will tie the whole master plan together and
bring it back to the HRA to review and approve. They wanted to
start at the west side because the east side is closer to the
intersection and will be easier to develop.
Mr. Jellison stated, with the 8 acre commercial site, MEPC feels
they need to put together some of the amenities for the market.
In talking with a prospective user, one of the first questions
was what.amenities are in the area. They have tried to think
through the types of services needed for the park and the things
we use at Minneapolis West that have been good for them. They
called.on Hampton Inn Corporation, which has business hotels.
MEPC has three prototypes from them. Their corporation has
looked at the site. This is one of three sites they are
considering. MEPC thinks this will be a great service for this
park. From there, MEPC will look at other amenities they think
are important for the park. They will try to get them under
construction this summer and they would also like to get the
first office building under construction this summer.
Mr. Jellison stated the other thing is the focus groups. They
are in the process of putting this together and will meet in
February to get an idea from the users in the marketplace to find
out their needs.
Mr. Meyer stated he has concerns that the commercial area would
be filled first and not have the office. This is an important
tract and he wants to do it right. Why is it necessary to get
the commercial amenities in place before the office space? If
the office space is contracted out, is there not enough time to
then put in the various amenities?
Mr. Jellison stated that is something they must weigh when
putting in a development. When MEPC goes to users to find out
what would attract them to the area, most have amenities to
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 14
attract people to the site. One must have a total package. He
did not know all the answers but he felt they must have services
in the area to meet the needs of the employees. MEPC is after
good corporations who will bring a lot of good people here and,
therefore, have good services right in the area. MEPC will give
HRA members a tour of their existing park to show them a park
that works well and the type of package that has been successful
for them.
Mr. Meyer stated he is concerned that, if you get the commercial
amenities in and nothing then happens in the office sector, we
then have a commercial area which may not be the best. There is
no guarantee, but he is concerned this might happen.
Mr. Commers stated the HRA has approval over anything that goes
into that area. If MEPC proposes to construct, they have to get
approval. If it does not have a long term benefit to attract
tenants, hopefully the HRA would be able to say no.
Mr. Jellison stated everyone that MEPC would bring in as an
amenity to the park would also have to be convinced that this is
a good location. The Hampton Inn would not come in unless they
felt it would be successful in their eyes. If, by the end of
1996, MEPC does not have an anchor tenant but has some services,
how can that hurt the on -going marketing of the park. These
services will the types of services that everyone needs. When
you start seeing something happen on the site, it gives the site
a life of its own. We are excited to get something happening.
We will be coming to you with more. We have also met with a
banker to see if they would like a branch in this location. We
are trying to make a community so businesses will come to the
area. MEPC will try to provide those services that are important
to those working at the site.
Mr. Jellison stated MEPC is getting the word out that there will
be a park. Once they get a design, it will develop interest.
Because of the location, he can see a market all the way down to
Minneapolis.
Mr. Commers stated the sooner that something can get going the
better. We recognize that activity on the site will encourage
things to happen.
Ms. Dacy distributed additional information regarding an indirect
source permit application and the ISTEA application. Staff had
to hire another specialty consultant to do air quality testing.
MPCA would not allow us to update the information from the 1986
permit. The air quality equipment is very expensive. There is
only one company in town that does this work. That work will be
underway this month. The costs h&Ve been included in the budget.
.
HOUSING A REDEVELOPMENT AUTHORITY MTG.. JANUARY 111 1996 PAGE 15
Ms. Dacy stated they asked Benshoof to complete the Inner Surface
Transportation Efficiency Act (ISTEA) funding application in
order to construct the intersection. The total cost is $6,700
but Anoka County will pay $3,350. ISTEA is a source of Federal
funding for up to 80% of the road improvement costs. Staff will
know in March if they have been successful. The catch is that
the Federal monies require an environmental assessment which is
different from the - environmental assessment that was updated for
the Lake Pointe development. Staff may have to come back for
additional funds.
Ms. Schnabel asked, potentially without a Federal budget, would
this money be available from the government. Some agencies are
now funded and some are not.
Ms. Dacy stated she would verify the funding source. The money
itself will not be available until two years from now. However,
depending on how fast MEPC goes, we could try to bump another
project ahead of this if everything is in place. Perhaps 1998 is
a more practical time to start construction. The funds are
included for 1997. If the application is not funded, there.is
money in the budget. The City must be the applicant for the
funds rather than the HRA.
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to request the
City of Fridley to file the ISTEA application and, if funded, to
act on behalf of the HRA to complete the project with the
understanding that the costs associated with the project are to
be reimbursed by the HRA.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
15. SOUTHWEST QUADRANT UPDATE
Ms. Dacy stated she, Mr. Casserly and Mr. Burns will meet with
Mr. Stutz on January 12. Staff has no update at this time. They
will get the numbers tomorrow.
Mr. Commers stated, if the prevailing rate increases the costs
significantly, perhaps we should not continue. If that is the
case, we should discuss.
Mr. Burns suggested waiting until after the meeting to see what
Mr. Stutz says. Since the issue of the prevailing wage is an
ordinance, he would work with the City Council to find a way out
of the impasse.
Mr. Commers stated the City Council has passed a prevailing wage
requirement. He thought the crucial issue was if the City
HOUSING & REDEVELOPMENT AUTHORITY NTG.. JANUARY 11. 1996 PAGE 16
Council could come back to the HRA to pay the difference in cost
for the prevailing wage, and he was unsure this was something the
HRA should do. This issue has not arisen for some time. He
asked why this had not come up for other projects.
Ms. Dacy stated, based on research, for commercial and industrial
the contractors are union and match the prevailing wage. This is
not generally true of residential contractors. There are also
exemptions for sole proprietors.
Mr. Burns stated it is a top priority to get this issue resolved.
This issue will affect every residential project undertaken in
the future.
16. PROPOSED REVISION TO HOUSING MORTGAGE ASSISTANCE PROGRAM
Mr. Fernelius stated they have been struggling with this program
for the last two years. Staff have identified an opportunity to
provide the same type of program utilizing some other funds.
Staff will research that and come back with a recommendation in
the next few months.
17. DRAFT 1996 BUDGET
Mr. Commers stated it will take several hours to go over the
budget and understand what the entries mean. It appears straight
forward but it takes time to go through it.
Mr. Meyer stated he would prefer to meet earlier to allow extra
time to review the budget.
Mr. Burns stated staff would look at the next agenda. If they
can work it out, they will plan to meet at 6:30 p.m.
Mr. Commers stated the budget has increased by a large amount.
This is fine, but the HRA must be satisfied to justify that type
of an increase.
The consensus of the HRA was to consider the budget at the next
meeting.
Ms. Dacy stated staff has been conservative on the revenues and
aggressive on the expenses.
Mr. Casserly stated the HRA has funded projects but has not seen
funds coming back in from those projects. Adjustments to the
budget would be to the revenue projections.
Mr. Ellestad stated he could provide footnotes for interpretation
of the entries and add a column titled Projects in Process.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 17
Mr. Commers stated that is what he would like to see. He felt
that information would be helpful. He asked staff to add this
item to the agenda for the next meeting.
OTHER BUSINESS•
18. FRANK'S USED CAR SITE REDEVELOPMENT UPDATE
Ms. Dacy distributed a copy of her memo of January 5, 1996,
regarding Frank's Used Cars.
19. OPTION TO ELECT CONTRIBUTION OR LGA /HACA REDUCTION ON TAX
INCREMENT FINANCING DISTRICTS
Ms. Dacy distributed copies of her memo of December 12, 1995,
regarding the tax increment financing district.
20. APPEALS OF RELOCATION BENEFITS BY JANG WONG RESTAURANT
Mr. Commers stated he did not understand the increase in the
relocation benefits.
Ms. Dacy stated she would have Mr. Schnitker write a memo to
document the reasons for the additional amount.
21. MASTELL BROTHERS TRAILER SERVICES, INC., REQUEST FOR TAX
INCREMENT FINANCING ASSISTANCE
Ms. Dacy distributed copies of her memo of December 8, 1995,
regarding a request from Mastell Brothers Trailer Services, Inc.,
for tax increment financing assistance.
22. REVENUES AND EXPENSES
MOTION by Ms. Schnabel, seconded by Mr. McFarland, to approve the
check register #25774 through #25827 and the additional expenses
as listed in Mr. Ellestad's memo of January 11, 1996.
Mr. Commers asked what had been paid with check #25786.
Mr. Ellestad stated this was the second half taxes for the four
apartment buildings. When we buy a property, all taxes should be
paid for the rest of the year.
Mr. Commer6 questioned, when doing a quick take, if they get to
deduct the taxes.
Ms. Dacy stated that is a separate action with a condemnation.
She will check with Barna, Guzy & Steffan to see if this is
correct. The properties should be tax exempt for July 1996. She
e
e
HOUSING & REDEVELOPMENT AUTHORITY MTG., JANUARY 11, 1996 PAGE 18
thought they were responsible for the second half taxes, but she
will check further.
Ms. Schnabel asked what the expenditure was for to Springstead
Public Finance.
Mr. Ellestad stated the 1992 temporary Lake Pointe bond came due.
Springstead is the company that provides the legal service for
getting the bonds.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONFERS DECLARED
THE NOTION CARRIED UNANIMOUSLY.
`I &'-%ril1jI � 114 M 4F
MOTION by Mr. McFarland, seconded by Mr. Meyer, to adjourn the
meeting.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONFERS DECLARED
THE MOTION CARRIED AND THE JANUARY 11, 1996, HOUSING AND
REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 10:20 P.M.
Respectfully submitted,
Lavonn Cooper
Recording Secretary
S I G N— I N S H E E T
HOUSING AND REDEVELOPMENT AUTHORITY MEETINGS . January 11, 1996
Name
Address /Business
J �
i
t
TO: FRIDLEY H.R.A
FROM: CITY OF FRIDLEY
RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES
JANUARY 1996
>?J4(VC1F >19f ">
ADMINISTRATIVE BILLING:
ADMINISTRATIVE PERSONAL SERVICES
ADMINISTRATIVE OVERHEAD
COMPUTER OVERHEAD
(For Micro & Mini computers)
TOTAL ADMINISTRATIVE BILLING:
OPERATING EXPENSES:
MN NA.H.R.O. — DUES, FERNEUUS
US WEST — TELEPHONE SERVICE
BENEFITS EXPENSES:
CITY OF FRIDLEY — HEALTH INS, JAN
CITY OF FRIDLEY — DENTAL INS, JAN
CITY OF FRIDLEY — LIFE INS, JAN
Account #'s for
HRA's Use
Account #'s for
City's Use
19,800.75 101 -0000 -341 -1200
275.85 101 -0000- 336 -3000
200.25 101 - 0000 -336 -3000
460- 0000 -430 -4107 201276.85
.• •••• I • ,
TOTAL OPERATING EXPENSES
262 -0000- 219 -1001
262 -0000 -219 -1100
262 -0000 -219 -1200
TOTAL BENEFITS EXPENSES
TOTAL EXPENDITURES — JANUARY 1996
File: \123DATAIHRA\TIF\"BILL.wk1 Details
1
15.00 236 - 0000 - 336 -3000
13.39 236 - 0000 -336 -3000
28.39
182.40 236 -0000- 219 -1001
20.53 236 -0000 -219 -1100
3.50 236 -0000- 219 -1200
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Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
TO: Fridley Housing and Redevelopment Authority Members
FROM: William W. Bums, Executive Director of the HRA,,fgf-q
DATE: February 2, 1996
SUBJECT: Agreement for Legal Services
The City Council determined to shift responsibility for civil legal services from Bama,
Guzy & Steffen, Ltd., to the firm of Holstad & Larson, P.L.C. and Frederic W. Knaak.
As a result of Council's decision, the City has entered into a contract with this firm.
As part of the contract, Holstad & Larson and Mr. Knaak will be providing up to five
hours of basic legal services and up to five hours of litigation per month to the Fridley
HRA.
As we make the change for the City, it appears to make sense for the HRA to do the
same. To that end, I have prepared an agreement for consideration by the HRA.
Although the scope of services is different from the City's contract, the remainder of
the agreement parallels the City's agreement. I have negotiated the fee of $75.00
per hour for each hour of basic legal services after the first five hours and the same
amount for each hour of litigation services after the first five hours.
Staff recommends approval of this agreement. I think you will find Mr. Knaak to be
a very competent and knowledgeable attorney, and you will enjoy working with him.
WWB:rsc
Attachment
AGREEMENT FOR LEGAL SERVICE
BETWEEN THE CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY
AND HOLSTAD & LARM P.L. C.
AND FREDERIC W. KNAAK
WHEREAS, the City of Fridley Housing and Redevelopment Authority ( "HRA "), a public body
corporate and politic operating as a home rule charter city under the laws of the State of
Minnesota and located within the County of Anoka, desires to have certain attorney services
provided; and,
WHEREAS, the City of Fridley solicited proposals for attorney services; and,
WHEREAS, the council of the City selected the law firm of Holstad & Larson, P.L.C. in
conjunction with Frederic W. Knaak, Esq., ( "Attorney ") to serve as city attorney and authorized
a contract between the City of Fridley and the Attorney;
NOW THEREFORE, IT IS HEREBY AGREED that this document by and between the Fridley
HRA and the Attorney shall be a binding obligation on behalf of all parties named.
I. Term.
This agreement shall be effective February 9, 1996. It shall be valid through December 31, 1998,
inclusive. It shall, however, be severable as provided in Section X.
U. Scope of Legal Services.
The following services shall be provided to the Fridley HRA by the Attorney as a matter of right
under the terms of this agreement:
a. Attendance at meetings of the Fridley HRA upon request.
b. Drafting and review of resolutions, motions and other legal actions under
consideration by the Fridley HRA.
C. Drafting correspondence on behalf of the Fridley HRA.
d. Answering questions raised by the City and HRA officials and staff.
e. Meeting with and advising the Fridley HRA commission members, the Executive
Director, and the Community Development Director, and other City staff members
who have been assigned to work on Fridley HRA projects.
2A
a
f. Reviewing Fridley HRA contracts, including purchase agreements, and other legal
documents as requested.
g. Representing the Fridley HRA in condemnation proceedings or emminent domain
proceedings.
h. Representing the Fridley HRA in the acquisition or sale of public property, and the
drafting and signing of deeds, easements and other real estate or land use
documents.
L Researching and submitting legal opinions and interpretations on Fridley HRA
related legal matters as required, including such topics as fair housing, relocation,
and tax increment financing.
j . Briefing the Fridley HRA officials on newly adopted statutes, rules, or regulations,
as well as any court decisions, agency rulings, or other official rulings or opinions,
that could have an effect on the Fridley HRA or the way it conducts business, and
recommending the appropriate amendments to ordinances, policies, or other actions
of the Fridley HRA in order to comply with the changes in the law.
k. Defending the Fridley HRA in all litigation except in those cases in which
insurance companies are required to provide a defense or if the Fridley HRA
chooses to hire specialized legal firms.
1. Representing the Fridley HRA in Workers' Compensation proceedings.
m. Reviewing bond and insurance requirements required by and/or for Fridley HRA
contracts or duties.
n. Preparing reports on the status of HRA litigation and other legal matters.
o. Reviewing documents submitted by bond counsel following the issuance of debt or
debt - related instruments and providing opinions as required.
p. Meeting with the Fridley HRA Executive Director and the Community
Development Director to review all litigation and other pending matters of the
Fridley HRA, and providing a written report of such litigation or legal matters.
2
7R
III. Fees.
The Fridley HRA shall compensate the Attorney at the rate of Seventy -Five and 00 /100 Dollars
($75.00) per hour for each hour after the first five (5) hours of basic legal services provided in
any one month. Additionally, the Fridley HRA shall compensate the attorney at the rate of
Seventy -Five and 00 /100 Dollars ($75.00) per hour for each hour after the first five (5) hours in
any one month for any litigation on a case where the time spent on that individual case exceeds
five (5) hours in the month.
Paralegal time spent on litigation billed at the hourly rate shall be billed to the Fridley HRA at the
rate of Fifty and 00 /100 Dollars ($50.00) per hour. For the purpose of billing, all zoning,
housing, rental housing, and building code prosecutions conducted in any one month shall be
counted as one case for the purpose of determining the ten hour cap.
The hourly rate and compensation described above shall include the charges for long distance
telephone calls up to Twenty -Five and 00/100 Dollars ($25.00) per month, photocopying up to five
hundred (500) pages per month, and up to thirty (30) minutes of search time on Westlaw. Beyond
these limits, billings shall be at actual cost for long distance telephone calls, twenty -five cents
($0.25) per page for photocopying, and Eight and 00 /100 Dollars ($8.00) per minute for Westlaw
searches. All other costs such as filing fees, court costs, witness expenses, and faxes shall be
billed to the Fridley HRA at actual cost.
Hourly billings for time shall be rounded to the nearest 1 /10 of an hour (six minutes).
The Attorney shall submit a bill to the Fridley HRA on a monthly basis. This bill shall detail all
time spent working on behalf of the Fridley HRA, with litigation time being separated from other
general matters. All charges made in addition to the established monthly charge shall be clearly
documented. The precise format of the billing statement shall be agreed to by the Fridley HRA
and the Attorney.
The monthly fee for February, 1996, shall be prorated by the number days for which services are
provided under this agreement.
IV. Responsible Attorney and Staff.
Frederic W. ( "Fritz ") Knaak shall be the primary attorney for the Fridley HRA. Mr. Knaak shall
be responsible for the performance of this agreement, although he may be assisted by other
attorneys or support staff in the firm. Mr. Knaak shall supervise all work performed on behalf
of the Fridley HRA.
3
9 C
V. Conflicts of Interest
The Attorney shall not accept any client or project which would knowingly place it in a conflict
of interest with the services to be provided to the Fridley HRA under this agreement. If a conflict
of interest should develop, the Attorney shall be responsible for taking the necessary steps to
comport its representation of the Fridley HRA with the Lawyers Code of Professional
Responsibility. The Attorney shall be responsible for any additional costs incurred by the Fridley
HRA in obtaining additional legal representation if such representation becomes necessary due to
a conflict of interest.
VI. Assignment of Services and Agreement
The Attorney shall not assign any interest or obligation of this Agreement without the prior
written consent of the Fridley HRA; provided, however, that it is agreed that if Frederic W.
( "Fritz ") Knaak shall cease to be associated with the law firm of Holstad & Larson, P.L.C., the
Fridley HRA may assign this agreement directly to Frederic W. ( "Fritz") Knaak.
VII. Affirmative Action
Because the Fridley HRA requires and follows a policy of Affirmative Action and will not tolerate
discriminatory acts, the Attorney shall not discriminate against any person on the basis of age,
sex, religious beliefs, political affiliations, or other protected classifications under federal, state,
or local laws or regulations.
VIII. Work Product.
All ordinances, resolutions, correspondences, and other documents or materials drafted for the
Fridley HRA by the Attorney shall, upon their completion, become the property of the Fridley
HRA.
IX. Insurance and Indemnification
Attorney agrees to maintain a valid policy of Professional Liability Insurance for the duration of
this agreement. The value of the policy shall not be less than the cap for municipal tort liability
as established by Minnesota Statutes.
Attorney further agrees to defend, indemnify, and hold harmless the Fridley HRA, its agents and,
employees, against all causes of actions against the Fridley HRA or any of its agents or employees
that arise from or as a result of the Attorney's actions or advice under the terms of this agreement.
4
2D
X. Severability.
The Fridley HRA or Attorney may sever the terms of this agreement upon sixty days written
notice. Failure by the Fridley HRA or the Attorney to comply with any of the terms of this
agreement shall be grounds for terminating this agreement, as shall be the Fridley HRA's
dissatisfaction with the Attorney's performance under the agreement. Upon termination of this
agreement, the Fridley HRA shall only be responsible for the monthly fee and any additional
billings accrued as of the date of termination.
Further, the Fridley HRA expressly reserves its right to hire independent counsel on matters it
determines requires an attorney with more experience or expertise in a particular field. In such
a situation, the Fridley HRA shall remain responsible to the Attorney for the monthly fee provided
under this agreement along with any billings not related to the matter for which special counsel
was retained. The Fridley HRA shall only be responsible to the Attorney for extra expenses in
relation to the matter for which special counsel is retained if the Fridley HRA names the Attorney
as co- counsel in the matter or otherwise requests the Attorney's participation.
XI. Acceptance.
The terms of this agreement are hereby accepted and made binding upon and between the Fridley
HRA and the law firm of Holstad & Larson, P.L.C. in conjunction with Frederic W. Knaak.
On behalf of the Fridley Housing On behalf of Holstad & Larson,
and Redevelopment Authority: in conjunction with Frederic W. Knaak:
LM
Lawrence R. Commers Frederic W. Knaak
Chairman
William W. Burns
Executive Director
Date:
5
2E
Date:
a�
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: February 2, 1996
TO: William Bums, Executive Director of HRA 44 PY
FROM: Barbara Dacy, Community Development Director
Grant Femelius, Housing Coordinator
SUBJECT: Consider Temporary Construction Easement for
Lot 4, Block 1, Scherer Addition
This lot is located along East River Road and is immediately north of the Locke Lake
Dam. The HRA acquired the site from Anoka County and plans to sell it to the
adjoining property owner to the south (Roberta Moore).
In the interim, the City has requested use of the site as an access point to Locke Lake
for a public works project. John Flora, Director of Public Works, has prepared a letter
which outlines the details of the project.
Recommendation
Staff recommends that the HRA grant a temporary construction easement to the City
of Fridley on Lot 4, Block 1, Scherer Addition.
GF/
M -96-56
3
rJAM 0 W
G1YOF
FRIDLEY
FRIDLEY MUNICIPAL CENTER - 6431 UNIVERSITY AVE. N.E. FRIDLEY, MN 55432 - (612) 571 -3450 - FAX (612) 571 -1287
January 31, 1996 PW96 -013
Housing Redevelopment Authority
Executive Director
Subject: Temporary Construction Easement
Since the HRA owns title to Lot 4, Block 1 Scherer Addition, PIN No. 15- 30- 2412 -0067, property located
on East River Road, the City requests a temporary construction access easement on the parcel.
The City is preparing plans to remove approximately 17,000 cubic yards of fill material from Locke Lake
for the Stonybrook Creek project. This project is expected to start in February and be completed in
April 1996. The Rice Creek Watershed District (RCWD) will also be completing a project to remove
sediment from Locke Lake in the October 1996 through April 1997 time frame. To expedite the removal
of material from Locke Lake and to minimize the impact to the abutting properties, we are requesting
the use of Lot 4 as the access point to Locke Lake and to East River Road.
It is expected that the City will utilize Lot 4 for its improvement project. The use by the RCWD is
dependent upon the contract specifications and the contractor. Accordingly, request that a temporary
construction access easement be provided to the City for the period of February 1996 through May 1996
and a possible extension based upon a request from RCWD for their project once it has been designed.
At the completion of each phase, the property will be restored and seeded by the contractor.
Request a temporary construction easement over Lot 4, Block 1 Scherer Addition.
If you need any additional information in this regard, please contact me at 572 -3550.
Sincerely yours,
John G. Flora
Director of Public Works
JGF:cz
--,> cc: Grant Fernelius
3A
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: February 2, 1996
TO: William Bums, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Femelius, Housing Coordinator
SUBJECT: Conduct Public Hearing Regarding Sale of Vacant
Lots at 5981- 3rd Street, 623 Lafayette Street, and 683
Glencoe Street
This hearing was originally scheduled for the December, 1995 HRA meeting, but
wasn't held because the meeting was cancelled.
Public Hearing Format
1. HRA Chair to request motion to open public hearing.
2. Staff presentation.
3. HRA Chair to ask for comments from HRA Commissioners.
4. HRA Chair to ask for comments from general public.
5. HRA Chair to request motion to close public hearing.
Introduction
Two of these sites are going to be developed as new home sites; the third lot will be
sold to an adjoining property owner. Below is a description of each lot and the
circumstances surrounding the sale (maps are attached).
Lot #1 5981 - 3rd Street NE
This lot is located in Hyde Park and is situated near the "slip off' ramp from
southbound University Avenue. The lot is adjacent to a property sold by the HRA last
fall to Oliver Tam. During the lot sale process last September two identical bids were
e
Public Hearing on Sale of Vacant Lots
February 2, 1996
Page 2
received for this site. The HRA rejected both bids and requested new bids by
December 1, 1995. The new offers are shown below.
Bidder Offer Security
Tams, Inc. $5,100 $500 Cashier's Check
Whitney Homes $5,050 $500 Bank Money Order
Mr. Tam has agreed to build a home on the site and will use a different floor plan
then the home at 5973 - 3rd Street.
Lot #2 683 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 aren't suitable for
acquisition.
Staff contacted the owner, Joe Paulzine who owns the parcel to the east, 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.
Lot #3 623 Lafayette Street
As you may recall, at the January HRA meeting this lot was to be sold to Oliver Tam.
However, after considerable discussion Mr. Tam decided not to pursue construction
of the home and agreed to forfeit his earnest money and withdraw the offer.
Staff contacted the second highest bidder, Whitney Homes, which expressed interest
in buying the lot. Their offer of $18,000 is still firm.
Recommendation
Unless there are adverse comments during the public hearing, staff recommends that
the HRA approve the attached resolution authorizing the sale of the lots as presented.
GF/
M -96-55
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'51 JAC
l' 02(
4C
HRA RESOLUTION NO. '�
A RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY.
WHEREAS, the Housing and Redevelopment Authority in and for the
City of Fridley (the "Authority ") has established the Scattered
Site Acquisition Program (the "Program ") to acquire and demolish
substandard residential properties for the purposes of removing
blight and improving neighborhoods; and
WHEREAS, the Authority has acquired a site (the "Property ") which
is now ready for redevelopment and legally described in Exhibit
A; and
WHEREAS, the Authority has established guidelines for selling the
Property and has requested bids from private parties to redevelop
the Property; and
WHEREAS, the Authority has conducted a public hearing as required
by Minnesota Statutes before selling the Property.
NOW, THEREFORE BE IT RESOLVED BY the Housing and Redevelopment
Authority in and for the City of Fridley, Minnesota as follows:
1. Sale of the property located at 5981 3rd St. and legally
described in Exhibit A shall be awarded to Oliver Tam d /b /a
Tams, Inc. for the price of $5,100.
2. Award of the sale is subject to the buyer entering into a
Sale and Development Agreement with the Authority to ensure
that the Property is redeveloped in accordance with the
Program guidelines.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY THIS DAY OF , 1995.
LAWRENCE R. COMMERS
-ATTEST:
WILLIAM W. BURNS
Exhibit A
Legal Description
"Lots 29 and 30, Block 12, Hyde Park, Anoka County, Minnesota."
4E
HRA.RESOLUTION NO. 6�
A RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY.
WHEREAS, the Housing and Redevelopment Authority in and for the
City of Fridley (the "Authority ") has established the Scattered
Site Acquisition Program (the "Program ") to acquire and demolish
substandard residential properties for the purposes of removing
blight and improving neighborhoods; and
WHEREAS, the Authority has acquired a site (the "Property ") which
is legally described in Exhibit A and due to current Fridley City
Code is substandard and cannot be redeveloped as a new home site;
and
WHEREAS, the Authority has determined that it no longer has
public use for the Property; and
WHEREAS, the Authority has conducted a public hearing as required
by Minnesota Statutes before selling the Property.
NOW, THEREFORE BE IT RESOLVED BY the Housing and Redevelopment
Authority in and for the City of Fridley, Minnesota as follows:
1. Sale of the property located at 683 Glencoe St. and legally
described in Exhibit A shall be awarded to Joe Paulzine,
681 Glencoe St., for the price of $3,000.
2. Award of the sale is subject to the buyer completing the
administrative process to legally combine the parcels.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY THIS DAY OF , 1995.
LAWRENCE R. COMMERS
ATTEST:
WILLIAM W. BURNS
4F
Exhibit A
Legal Description
"Lots 23 and 24 in Section or Block 'S', Riverview Heights,
Anoka County, Minnesota."
4G
f
HRA RESOLUTION NO. b
A RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY.
WHEREAS, the Housing and Redevelopment Authority in and for the
City of Fridley (the "Authority ") has established the Scattered
Site Acquisition Program (the "Program ") to acquire and demolish
substandard residential properties for the purposes of removing
blight and improving neighborhoods; and
WHEREAS, the Authority has acquired a site (the "Property ") which
is now ready for redevelopment and legally described in Exhibit
A; and
WHEREAS, the Authority has established guidelines for selling the
Property and has requested bids from private parties to redevelop
the Property; and
WHEREAS, the Authority has conducted a public hearing as required
by Minnesota Statutes before selling the Property.
NOW, THEREFORE BE IT RESOLVED BY the Housing and Redevelopment
Authority in and for the City of Fridley, Minnesota as follows:
1. Sale of the property located at 623 Lafayette St. and
legally described in Exhibit A shall be awarded to Whitney
Homes, Inc. for the price of $18,000.
2. Award of the sale is subject to the buyer entering into a
Sale and Development Agreement with the Authority to ensure
that the Property is redeveloped in accordance with the
Program guidelines.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY THIS DAY OF , 1995.
LAWRENCE R. COMMERS
ATTEST:
WILLIAM W. BURNS
4H
A
Exhibit A
Legal Description
"Lot 26, Block C, Riverview Heights, Anoka County, Minnesota
and 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 on Lot 26.
41
U Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: February 2, 1996
TO: William Bums, Executive Director of HRA 446
FROM: Barbara Dacy, Community Development Director
SUBJECT: Consider Approval of Resolution Authorizing Execution of
the Development Contract with Rottlund Homes Inc.
The draft development contract and resolution authorizing its execution is presented
for HRA approval. Jim Casserly has outlined the "business terms"-of the proposed
contract in his memo dated February 1, 1996. A copy of the contract has been
forwarded to Rottlund Homes Inc. and their response is anticipated prior to the HRA
meeting on Thursday evening.
Process
The development contract simply requires Rottlund to construct 118 townhome units
as will be specified in the final plans to be approved by the City Council. The City
Council has asked that the HRA act on the development contract prior to its rezoning
and platting of the property. Final plans and drawings are now being prepared and
will be approved by the City Council at the end of February should the HRA approve
the proposed development contract.
The plans are proposed to be included as the attached "schedules" of the
development contract. Also being prepared as a separate schedule is the type of
interior products that will be installed in the units. Adoption of the schedules is
incorporated in the development contract.
Land Sale Price
Extensive research regarding the proposed land sale price has been completed.
Enclosed in the packet is a list of townhome sites in other communities. The land
sale price for the Southwest Quadrant site exceeds the comparables.
5
Development Contract with Rottlund Homes
February 2, 1996
Page 2
Miscellaneous Issues
There are other issues outside of the development contract which still need to be
addressed. To summarize:
1. Environmental testing on the former Fridley Fast Lube site is proposed to be
completed this Spring. Our consultants will be requesting a closure letter from
MPCA at that time. If successful, that particular portion of the property will be
conveyed to Rottlund Homes. In the meantime, an outlot will be created on
the plat in order to permit Rottlund to initiate construction on the remaining
portion of the site.
2. Anoka County, City staff, and Rottlund Homes are working together to
complete the required improvements for the reconstruction of Mississippi
Street. A joint powers agreement with Anoka County will be necessary with the
City acting as the HRH's agent. The City will be requiring Rottlund to complete
the.final plans and construction.
3. A preliminary title commitment has been obtained, and the closing of the
property will need to be completed. The developer is preparing the final plat
and drawings as mentioned earlier for City Council approval.
Prevailing Wage
The City Council at its workshop session on January 29, 1996 instructed staff to
prepare an amendment to Resolution No. 25 - 1990 exempting housing programs
from the prevailing wage requirement. It is not anticipated that the resolution will
have a unanimous vote; however, there is a majority on the City Council that support
exempting housing programs from the prevailing wage requirement. The resolution
will exempt not only rehabilitation programs but also redevelopment projects such as
the Southwest Quadrant and other housing - related projects such as redevelopment of
the Frank's Used Car site.
Recommendation
Staff recommends that the HRA approve the resolution authorizing execution of the
development contract with Rottlund Homes Inc. subject to staff reviewing and
approving all of the schedules and plans required by the development contract. The
development contract will not be signed by the Chairperson and Executive Director
until all issues have been resolved as required by the development contract.
BD /dw
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I . r_A SERL`r' t-'I �LZAHt-4 240 P02
i' CITY OF FRIDLEY, MINNESOTA
OPTION 7
* REVENUE
LAND SALES
951,000
TAX INCREMENT
760,235
TOTAL REVENUE
1,711,235
* EXPENSES
TOTAL EXPENSES
4,343,548
SURPLUS /(DEFICIT)
(2,632,313)
* SALES PRICE
VILLAGE HOMES
PRICE RANGE
100,000
UNITS
20
PRICE RANGE
115,000
UNITS
20
PRICE RANGE
UNITS
PRICE RANGE
125,000
UNITS
20
TOWNHOMES
PRICE RANGE
85,Q00
UNITS
16
PRICE RANGE
95,000
UNITS
16
PRICE RANGE
100,000
UNITS
12
PRICE RANGE
110,000
UNITS
14
PRICE RANGE
UNITS
k TOTAL MARKET VALUE 11.178,000
* TOTAL TAXES 166,469
x TOTAL NUMBER OF UNITS 118
OPTION 7: 14.0 ACRE — NEW CONSTRUCTION
118 UNITS
NO SENIOR COMPONENT
TAN 24'96 1 S _ 0
PREPARED BY CASSERLY MOLT^""' ° WOCIATES, INC. 24— Jan -96
5C
a
c
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
FROM:
RE:
DATE:
M E M O R A N D U M
City of Fridley
Attn: Bill Burns, City Manager
Barbara Dacy, Community Development Director
The Rottlund Company, Inc.
Attn: Todd Stutz, Executive Vice President
James R. Casserly
Mary E. Molzahn
February 1, 1996 Draft of
Redevelopment Between the
Company, Inc.
February 2, 1996
the Contract for Private
Fridley HRA and Rottlund
Enclosed each of you will find a copy of the above draft. The
Agreement attempts to incorporate the applicable and remaining
provisions of the Contract for Exclusive Negotiations between the
parties and the last twelve months of negotiations. The Agreement
is very clear about the number of units to be constructed, which is
118, the type of units and the sale prices. Please review the
definition of Minimum Improvements.
The Agreement is specific about the purchase price, which is
$951,000.00, the contribution of $40,559.00 by the Redeveloper for
the Mississippi Street intersection improvements and the payment of
$375.00 per unit for the park dedication fees. The City /Authority
is to provide public utilities and improvements up to the
Redevelopment Property; the Redeveloper is to provide public
utilities and improvements over and across the Redevelopment
Property including the construction of Third Street. The
Redeveloper is also to construct certain park amenities and to
provide the City an easement for the public to utilize the park.
The payment of prevailing wages is applicable only if the
subcontractors are not principally Minnesota companies or if more
than 2026 of the employees that work on the project are not
Minnesota residents. We have also included a provision that
requires the Redeveloper to make sure that the subcontractors have
appropriate workman's compensation insurance.
Finally, we are going to attach to the Agreement a listing of the
5D
products and materials that the Redeveloper intends to use in the
construction of the Minimum Improvements.
The Authority is continuing to deal with a minor pollution issue
which impacts only the area that is designated for the park. We
are hopeful this issue can be resolved prior to closing, but if it
cannot, it should be easily managed.
Please let us know as soon as possible if there is a problem with
the basic business terms contained in this Contract. We understand
there are a number of minor issues which need resolution, but if
the basic terms are acceptable to the Redeveloper and the
City /Authority staff, then we are going to ask the Authority to
approve the Agreement at its regular meeting on Thursday, February
8, 1996.
Again, we wish to thank everyone for their patience and cooperation
in helping to resolve these many issues. Please contact us as soon
as possible with observations, comments and changes.
JRC /MEM /jms
P.S. to Barbara Dacy: Also enclosed you will find a Resolution for
the Authority to approve the execution of the Contract.
-2-
5E
e
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 THE
ROTTLUND COMPANY, INC.
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 The
Rottlund Company, Inc. (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 seg..
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
5F
Chairman
Casserly Molzalui & 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: Barbara Dacy, Community Development Director
The Rottlund Company, Inc.
Attn: Todd Stutz, Executive Vice President
FROM: James R. Casserly
Mary E. Molzahn
RE: Schedules for the Contract for Private Redevelopment
Between the Fridley HRA and Rottlund Company, Inc.
DATE: February 2, 1996
We need help regarding the preparation of several of the Schedules
to be attached to the above Contract. We need the following:
1. We have the legal descriptions for ten different parcels that
compose the Redevelopment Property. Is this Property going to
be replatted in the very near future so that we can use the
replatted description, or should we be using the existing
legal descriptions for the closing. Also we need a projected
closing date. This is currently left open in the Contract in
Article III.
2. A copy of the site plan.
3. A copy of the park /plaza plan.
4. Floor plans for the Minimum Improvements. We need one floor
plan for each type of unit that is described in the definition
of the Minimum Improvements.
5. A description of the products and materials used for the
construction of the Minimum Improvements. If different
products /materials are used for the townhomes than for the
village homes, these distinctions should be noted or a
separate list should be prepared.
As soon as all this information can be assembled, we will complete
the Contract and start the preparations for closing.
JRC /MEM /jms
CC: Bill Burns, City Manager
5G
a° 0
Community Development Department
HOUSING AND REDEVELOPMENT A.uTHORITY
City of Fridley
DATE: February 2, 1996
TO: William Bums, Executive Director of HRA ��
FROM: Barbara Dacy, Community Development Director
SUBJECT:
Review Draft 1996 HRA Budget
The HRA at its January 11, 1996 meeting requested staff to schedule a workshop
session prior to the regular February meeting to review the proposed 1996 budget.
Debbie Wolfe is attempting to contact all of the HRA members to inform them of the
6:15 p.m. workshop session time, and also to determine a dinner food preference.
We will conduct the work session in Conference Room A before moving into the
Council Chambers to conduct the remainder of the meeting.
Please let us know as soon as possible if you cannot attend either portion of the
meeting. Enclosed is the same information which was distributed in the January
packet.
BD /dw
M -96 -51
L19
r �►
Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: January 4, 1996
TO: William Burns, Executive Director of HRA
a�
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.
AA
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.
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 3% 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.
6C
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 too 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
ac
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.
�ID
M -96-17
6E
Housing Operating
Expenses and Capital
Outlay
BUDGET SUMMARY
BUDGET 1995
$520,970
Housing Rehab Programs $930,000
Total
$1,450,970
HRA Operating Expenses $1,229,668
Capital Outlay
Total
$3,702,320
$4,931,988
6F
BUDGET 1996
$793,884
$1,150,000
$1,943,884
$1,326,842
$360,170
$1,687,012
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BUDGET 1996
HRA OPERATING BUDGET SUMMARY
- ----- --- --- - -- --- - ----- -- ---- - - - - -- ------ - - - - -- - -- --- - -- - -- --- ---- -- ----
^* CAPITAL OUTLAY 358,165 430,085 3,667,150 3,664,147 360,170 90-
6H
PERCENT
1993
1994
1995
1995
1996
INCREASE/
ACCOUNT DESCRIPTION
ACTUALS
ACTUALS
BUDGET
ESTIMATE
BUDGET
(DECREASE)
*
ADMIN CHARGES
169,561
184,905
185,154
185,154
243,322
31
"*
------
PERSONAL SERVICES
- - - - -- ------
169,561
- - - - --
184,905
------ - - - - --
185,154
------ - - - - -- ------
185,154
- - - - -- -------
243,322
- - - - --
31
*
OFFICE SUPPLIES
229
11
250
25
250
*
OPERATING SUPPLIES
829
537
400
36
400
*
REPAIR & MAINTENANCE SUPP
**
--------
SUPPLIES
---- ----------
1,058
--
548
- --------- --
650
---- -- ------ -
61
----- ---- -- -
650
--- -- - -- - - --
*
PROFESSIONAL SERVICES
63,861
109,197
366,435
321,366
237,500
35-
*
DUES & SUBSCRIPTIONS
503
466
425
280
425
*
COMMUNICATIONS
924
426
875
1,688
875
* '
TRANSPORTATION
6
600
600
'
ADVERTISING
3,269
24,233
33,000
21,938
18,000
45-
*
PRINTING & BINDING
1,730
879
2,750
999
2,230
19-
*
INSURANCE, NON- PERSONNEL
10,468
6,454
6,075
9,267
9,045
49
'
CONFERENCES & SCHOOLS
708
683
1,600
410
1,600
*
UTILITY SERVICES
4,773
4,296
3,300
864
3,300
*
SRVS CONTRACTED NON -PROF
33,948
78,820
320,928
228,543
96,250
70-
*
RENTALS
40
*
MISCELLANEOUS
4,690
138,649
18,000
108,857
37,829
110
*
PAYMENTS TO OTHER GOVTS
343,987
296,246
315,046
156,400
315,046
'*
------
OTHER SERVICES & CHARGES
- - -- -- ---
468,907
--- - - - - -- ------
660,349
- - - - -- ------
1,069,034
- -- --- -----
850,612
- - - - - -- -------
722,700
- - - - --
32-
'
LAND
271,192
142,970
3,667,150
3,664,147
335,000
91-
BUILDING
68,470
*
IMPS OTHER THAN BUILDING
18,503
287,115
25,170
*
PUBLIC UTILITY & IMPROVEM
- ----- --- --- - -- --- - ----- -- ---- - - - - -- ------ - - - - -- - -- --- - -- - -- --- ---- -- ----
^* CAPITAL OUTLAY 358,165 430,085 3,667,150 3,664,147 360,170 90-
6H
BUDGET 1996
HRA OPERATING BUDGET SUMMARY
61
PERCENT
1993
1994 1995 1995 1996
INCREASE/
ACCOUNT DESCRIPTION ACTUALS
ACTUALS BUDGET ESTIMATE BUDGET
(DECREASE)
" OPERATING TRANSFER OUT 68,152
140,613
- -- ---------
"* OTHER FINANCING USES 68,152
-- --- ----- -- ---- -- --- --- -- --- - ------ -- ----- ----- -------
140,613
- - - - --
1,065,843
1,416,500 4,921,988 4,699,974 1,326,842
73-
61
r
HRA OPERATING BUDGET
1995 1996
ACCOUNT DESCRIPTION BUDGET BUDGET
AREA WIDE
AREA WIDE
4107 ADMIN CHARGES 185,154 243,322
LEVEL TEXT
2 NEW TIME STUDY COMPLETED TO UPDATE ADMIN /PER SRV
ADMIN OVERHEAD (1995 # X 3%)
MICRO COMPUTER CHARGE (1995 # X 3 %)
MINI COMPUTER (1995 # X 3%)
BUDGET 1996
PERCENT
INCREASE/
(DECREASE)
31
------ - - - - -- ------ - - - - -- ------- - - - - --
* PERSONAL SERVICES 185,154 243,322 31
4220 OFFICE SUPPLIES 250 250
LEVEL TEXT
2 AGENDA PREP
4221 OPERATING SUPPLIES 400 400
LEVEL TEXT
2 CORP REP FACT BOOK/MN BUS ALMANAC
FILM
FILM PROCESSING
- ----- - - - - -- -- -- -- - - - - -- -- ----- - - ----
* SUPPLIES 650 650
4330 PROFESSIONAL SERVICES 3411265 237,500 30
LEVEL TEXT
2 AUDIT FEES
LEGAL
BGS -SUH CONDEMNATION (FINISH APPEAL)
BGS -APT CONDEMNATION (CONMRS HEARINGS)
CASSERLY
RELOCATION CONSULTANT -JANG WAN APPEAL
BUSCH; LAKEPOINTE MKTING
NONPROGRAMMED STUDIES
OMEARA (SCHOOL DISTRICT AGREEMENTS)
NONPROGRAMMED AUDITS
REMEDIATION PLANS FOR SOIL CLEANUP (FAST LURE)
PHASE I AUDIT WERNER'S
APPRAISAL WERNER'S FURNITURE
NONPROGRAMMED APPRAISALS
RELOCATION ASSISTANCE WERNER'S
NOIPROGRAMMED RELOCATION ASSISTANCE
LARKIN HOFFMAN UAKEPOINTE)
SENSHOOF ( LAKEPOINTE)
6J
TEXT AMT
237,609
3,310
724
1,679
243,322
TEXT AMT
250
250
TEXT AMT
100
100
200
400
TEXT AMT
2,500
10,000
5,000
15,000
40,000
2,500
10,000
25,000
2,500
10,000
20,000
2,500
2,500
15,000
3,000
10,000
20,000
40,000
HRA OPERATING BUDGET
1995
ACCOUNT DESCRIPTION BUDGET
RELOCATION CONSULTANT FRANKS
4331 DUES & SUBSCRIPTIONS 425
LEVEL TEXT
2 MN REAL ESTATE JOURNAL
AMERICAN ECONOMIC DEVELOPMENT COUNCIL
CORPORATE REPORT
TWIN CITY BUSINESS MONTHLY
4332 COMMUNICATIONS 875
LEVEL TEXT
2 POSTAGE
PHONE
BUDGET 1996
PERCENT
1996 INCREASE/
BUDGET (DECREASE)
875
4333 TRANSPORTATION 600 600
LEVEL TEXT
2 EDC OR NAHRO CONFERENCE
4334 ADVERTISING 33,000 18,000
LEVEL TEXT
2 LEGAL ADS FOR TIF DISTRICT
LAKEPOINTE ADS
RFP FOR FRANK'S USED CARS
4335 PRINTING & BINDING 2,750
LEVEL TEXT
2 RFP
COPIER ALLOCATION
ANNUAL REPORT IN CITY NEWSLETTER
4336 INSURANCE, NON-PERSONNEL 60075
LEVEL TEXT
2 ESTMATE FROM FINANCE
4337 CONFERENCES & SCHOOLS 1,600
LEVEL TEXT
2 LUNCH AND BREAKFAST MEETING REIMBURSEMENTS
CONFERENCE LUNCHES
2,230
9,045
1,600
2,000
237,500
TEXT AMT
100
280
25
20
425
TEXT AMT
700
175
875
TEXT AMT
600
600
45-
TEXT AMT
2,000
15,000
1,000
18,000
19-
TEXT AMT
500
230
1,500
2,230
49
TEXT AMT
9,045
9,045
6K
TEXT AMT
500
100
R
HRA OPERATING BUDGET
1995
ACCOUNT DESCRIPTION BUDGET
COMMUNITY DEVELOPMENT DIRECTOR CONF
MISCELLANEOUS
BUDGET 1996
PERCENT
1996 INCREASE/
BUDGET (DECREASE)
4338 UTILITY SERVICES 3,300 3,300
LEVEL TEXT
2 LAKE POINTE ELECTRICITY FOR IRRIGATION
LAKE POINTE WATER CHARGES
4340 SRVS CONTRACTED NON -PROF 320,928 96,250
LEVEL TEXT
2 COURIER SERVICE
LAKE POINTE MAINTENANCE SERVICE
LAKE POINTE TREE /FERTILIZER SERVICES
SPRINKLER MAINTENANCE
FRANKS AND SF HOMES DEMO PLUS STREET REMOVAL
WERNERS DEMOLITION
4341 RENTALS
4346 MISCELLANEOUS 18,000 37,829
LEVEL TEXT
2 MCGLYNNIS PAY AS YOU GO EXPENSE
PFW /OSBORNE CROSSING PAY AS YOU GO EXPENSE
SCOTT LUND PROJECT PAY AS YOU GO
BOB SCHROER /EAST RANCH ESTATES PAY AS YOU GO
4350 PAYMENTS TO OTHER GOUTS 315,046 315,046
LEVEL TEXT
2 PAYMENTS TO SCHOOL DISTRICTS
110
500
500
1,600
TEXT AMT
300
3,000
3,300
TEXT AMT
250
21,000
5,000
10,000
55,000
5,000
96,250
TEXT AMT
10,000
8,000
3,089
16,740
37,829
TEXT AMT
315,046
315,046
--- --- - - - - -- -- -- -- --- --- - ---- -- -- - - --
* OTHER SERVICES & CHARGES 1,043,864 722,700 31-
4510 LAND 3,667,150 335,000 91-
LEVEL TEXT TEXT ANT
2 WERNER'S FURNITURE 75,000
TWO HOMES FOR FRANKS 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
6L
HRA OPERATING BUDGET
1995
ACCOUNT DESCRIPTION BUDGET
2 PLAZA AREA TREE.REPLACENENT
TWO SPARE DECORATIVE LIGHTS
BANNERS FOR MISSISSIPPI STREET
BUDGET 1946
PERCENT
1996 INCREASE/
BUDGET (DECREASE)
10,670
4,500
10,000
25,170
- --- -- - -- - -- ------ - - - - -- -- ----- - - -- --
* CAPITAL OUTLAY 3,667,150 360,170 90-
** CAPITAL OUTLAY 4,896,818 1,326,842 73-
------------ -- ---- -- - - -- ----- -- -- - ---
*** CAPITAL OUTLAY 4,896,818 1,326,842 73-
------------ ------ - - - - -- - ----- - - - - - --
**** AREA WIDE 4,896,818 1,326,842 73-
6M
f
BUDGET 1996
HOUSING COORD FUND (262)
6N
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 O/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
6N
BUDGET 1996
HOUSING COORD FUND (262)
PERCENT
1995 1996 INCREASE/
ACCOUNT DESCRIPTION BUDGET BUDGET (DECREASE)
HOUSING PROGRAM
4101 FULL TIME EMPLOYEE -REG 39,666
LEVEL TEXT
2 XXXXX
4102 REGULAR 0/T PAT
4104 TEMPORARY EMPLOYEE -REG 15,600
LEVEL TEXT
2 INSPECTOR FOR REHAB PROGRAM 290 HOURS X S27/HR =
REHAB COUNSELOR $13.20/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
4125 ICNA 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 COUNS
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
3
6
f
HOUSING COORD FUND (262)
BUDGET 1996
PERCENT
1995 1996 INCREASE/
ACCOUNT DESCRIPTION BUDGET BUDGET (DECREASE)
4229 WORK ORDER TRANSFER -PARTS
• SUPPLIES 1,500
4330 PROFESSIONAL SERVICES 32,565
LEVEL TEXT
2 1) ATTORNEY FOR SCATTERED SITE PROGRAM
2) CASSERLT MOLZAHN
(HRP, CEE AND LENDER AGREEMENTS, HOUSING PROG.)
3) FOCUS GROUPS
4) WELLNESS TESTING
4331 DUES & SUBSCRIPTIONS
LEVEL TEXT
2 HOUSING AFFAIRS NEWSLETTER
REMODELING COUNSELOR TRADE JOURNAL
500
4332 COMMUNICATIONS 2,000
LEVEL TEXT
2 INCREASED POSTAGE, PHONE, ETC. FOR REMODELING
COUNSELOR
4333 TRANSPORTATION
LEVEL TEXT
2 INCREASED COST DUE TO REHAB COUNSELOR
4334 ADVERTISING
LEVEL TEXT
2 REHAB FAIR
HOUSING PROGRAM
LOT SALES
500
7,500
4335 PRINTING & BINDING 29500
LEVEL TEXT
2 HOUSING PROGRAM BROCHURES
HOW TO REHAB BOOKS
BUILDING PERMIT BOOKS AT REHAB FAIR
4336 INSURANCE, NON- PERSONNEL
4337 CONFERENCES & SCHOOLS
LEVEL TEXT
6,500
TEXT ANT
20,000
5,000
7,500
65
32,565
TEXT AMT
350
150
500
TEXT AMT
2,000
2,000
TEXT AMT
600
600
TEXT ANT
1,500
3,500
2,500
7,500
TEXT AMT
1,700
300
500
2,500
TEXT AMT
6P
HOUSING COORD FUND (262)
1995
ACCOUNT DESCRIPTION BUDGET
2 SPONSOR REHAB FAIR
NAHRO, MILE, MHFA TRAINING
REMODELING COUNSELOR
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 NON -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.)
4346 MISCELLANEOUS
4350 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
. t�
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
R
HOUSING COORD FUND (262)
1995
ACCOUNT DESCRIPTION BUDGET
2 REPLACEMENT PC FOR HOUSING COORDINATOR
BUDGET 1996
PERCENT
1996 INCREASE/
BUDGET (DECREASE)
* CAPITAL OUTLAY 557,500
** HOUSING PROGRAM 793,W4
la
2,000
2,000
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 $141221.85 ** $ 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.
6S
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Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: February 2, 1996
TO: William Bums, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Femelius, Housing Coordinator
SUBJECT: Update on Home Remodeling Fair
Preparations for the first °Fridley Home Remodeling Fair° are now underway. The
event is scheduled for Saturday, April 20, 1996 from 10:00 a.m. to 3:00 p.m. in the
Fridley High School Cafeteria.
The event is modeled after the big shows held downtown (i.e. Home and Garden),
but on much smaller and more friendly scale. The event will include contractor and
product exhibitors, workshops on various home improvement topics, a "Home
Improvement Answer Booth°, free drawings for door prizes, food and beverages, free
day care, and a few surprises. We have contacted several other communities who
have held similar events and have received positive feedback about the potential for
our fair.
We will provide further details as the plans become more finalized.
GF/
I& • .
Come join us at...
Fridley Remodeling Fair
When: Saturday, April 20, 1996
10:00 a.m. to 3:00 p.m.
Where: Fridley High School - Cafeteria
6000 West Moore Lake Drive
What: * Free admission and convenient parking.
* Free seminars on home remodeling ideas
such as kitchens and baths, decks and
landscaping.
* Remodeling exhibits and contractors.
* Free advice from the Fridley Remodeling
Counselor at the Home Improvement
Answer Booth.
* Information on 5% home improvement
financing through the Fridley HRA.
* Drawings for free door prizes.
For more info call Fridley Information Line
at 572 -3600
7A
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�i Community Development Department
P p
D HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: February 2, 1996
TO: William Bums, Executive Director of HRA c�
FROM: Barbara Dacy, Community Development Director
SUBJECT: Lake Pointe Update
MEPC is working quickly to develop the master plan as required in the Contract for
Exclusive Negotiations. A draft of the concept plan will be available near the end of
February. In the meantime, I am continuing to work with Linda Fisher on preparing
the necessary documentation for the City Council to approve a resolution declaring
that there is no significant change to the impacts of the proposed development.
A-neighborhood meeting has been tentatively scheduled for Thursday, March 7, 1996
to review the environmental issues and to introduce MEPC to the neighborhood. Air
and noise testing has been occurring over the recent weeks in order to complete the
necessary documentation for the Indirect Source Permit application to MPCA.
I am meeting with Linda Fisher and the traffic consultant on Wednesday, February 7,
1996 to review our the current status of these applications. Linda and I are
coordinating to prepare the necessary documentation for the Environmental
Assessment Worksheet.
No action is necessary at this time.
BD /dw
M -96 -53
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Community Development Department
HOUSING AND REDEVELOPMENT AUTHORITY
City of Fridley
DATE: February 2, 1996
TO: William Bums, Executive Director of HRA 44b
FROM: Barbara Dacy, Community Development Director
SUBJECT: Frank's Used Car Site
Since the January HRA meeting, substantial progress has been made regarding the
Frank's Used Car site.
Acquisition and Relocation
The Executive Director continues to work with the two single family property owners
south of Frank's Used Cars. A number of relocation options are being discussed with
the owners, including reserving one of the proposed townhome units for them or
potentially relocating one of the homes to another site.
Planning Process
Community Development staff will be reviewing the proposed use with the Planning
Commission at its February 7, 1996 meeting. Further, Community Development staff
will be preparing a recommended citizen participation process for City Council
approval on February 26, 1996.
A more detailed review of the site reveals that there will need to be a Comprehensive
Plan amendment, a rezoning, a street vacation, and plat processes. The
Comprehensive Plan amendment is to change the density from low density to
medium to high density. As part of that review process, it is likely that the
Metropolitan Council will require us to show a relationship of the proposed owner -
occupied townhomes to the City's housing plan.
The City recently decided to participate in the Livable Communities Act program
recently established by the legislature. The intent of the program is to provide
incentives to communities to provide "life cycle housing°. The City of Fridley, as other
communities, are required to submit an "action plan" of how it intends to maintain and
promote life cycle housing by June 30, 1996.
9
Frank's Used Car Site
February 2, 1996
Page 2
In addition, the Metropolitan Council has grant applications available for funds to
assist projects which meet established criteria. Again, if the HRA is to be successful,
completion of the action plan by June 30, 1996 is required. In order to complete the
action plan in a timely manner so as to not slow the Frank's Used Car redevelopment
process, Community Development staff needs outside consultant help. At the March
HRA meeting, staff will be requesting HRA approval of a small consultant contract to
complete the action plan.
TIF Process
An analysis of the site will be completed in order to verify-that the site can qualify as a
TIF district.
Timing
It is hoped that the citizen participation process and preparation and response to the
request for proposal for the site can be completed for HRA approval in May and City
Council concurrence in the latter part of April. The planning and zoning applications
will hopefully occur beginning in June so that a Fall construction start can occur.
No action is required by the HRA at this time.
BD /dw
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