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HRA 04/11/1996 - 6263HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, APRIL 11, 1996 7:30 P.M. PUBLIC COPY (Please return to Community Development Dept.) CITY OF FRIDLEY A G E N D A HOUSING i REDEVELOPMENT AUTHORITY MEETING THURSDAY, APRIL 11, 1996 7:30 P.M. LOCATION: Council Chambers, Fridley Municipal Center CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: February 8, 1996 CONSENT AGENDA: Revenueand Expenses . . . . . . . . . . . . . . . . 1 - 1H Consider Resolution Authorizing . . . . . . . . . . 2 - 2A Reimbursement to the City of Fridley for the Mississippi Street and 3rd Street Construction Project Consider Acquisition of 6431 Jackson Street . . . . 3 - 3A Consider 1996 HOME Program Application and . . . . . 4 - 4J Matching Funds Consider Approval of Preliminary . . . . . . . . . . 5 - 5D Construction Plans for Christenson Crossing Consider Consultant Contract for the . . . . . . . . 6 - 6R Metropolitan Livable Communities Act Plan Requirement Consider House Plans for 5720 Polk Street . . . . . 7 - 7J ACTION ITEMS• Consider Service Contract with the Center . . . . . 8 - 8AA for Energy and the Environment Consider Loan Servicing Agreement with the . . . . . 9 - 9H Community Reinvestment Fund HRA Agenda April 11, 1996 Page 2 INFORMATION ITEMS• Review Concept Plan for Lake Pointe Office . . . . .10 - 10A Park Update on Scattered - Site /Housing . . . . . . . . . .11 - 11A Replacement Program Update on Home Remodeling and Garden Fair . . . . .12 - 12B Update on Two Requests for TIF Assistance . . . . .13 - 13R OTHER BUSINESS: ADJOURNMENT HRA RESOLUTION NO. 7 - 1996 RESOLUTION AUTHORIZING REIMBURSEMENT TO THE CITY OF FRIDLEY FOR THE MISSISSIPPI STREET /3RD STREET INTERSECTION CONSTRUCTION PROJECT WHEREAS, Anoka County has required certain public improvements to be completed to the Mississippi Street and 3rd Street intersection as a result of the Southwest Quadrant redevelopment project; and WHEREAS, the City of Fridley will administer and oversee the project's construction; and WHEREAS, the cost of the improvements will be shared equally by Holly Center, Anoka County, Rottlund Homes, Inc., and the Fridley Housing & Redevelopment Authority; and WHEREAS, Holly Center has submitted a letter consenting to be assessed by the City for their share of the costs; and WHEREAS, the Authority will receive Rottlund's share upon sale of the property; and WHEREAS, Anoka County will reimburse the City; and WHEREAS, the total project cost is estimated to be $162,237.69. NOW, THEREFORE, BE IT RESOLVED that the Authority agrees to reimburse the City of Fridley up to one -half of the construction cost as currently estimated for the completion of the public improvements at the intersection of Mississippi Street and 3rd Street. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS 11TH DAY OF APRIL, 1996. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR HRA RESOLUTION NO. 8 - 1996 A RESOLUTION ESTABLISHING A COMPREHENSIVE HOUSING REHABILITATION PROGRAM FOR THE CITY OF FRIDLEY; ESTABLISHING THE AREA OF OPERATION; PROVIDING FOR THE DELEGATION OF CERTAIN POWERS AND DUTIES; AUTHORIZING THE EXECUTION OF A CONSULTING AGREEMENT BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY AND THE CENTER FOR ENERGY AND ENVIRONMENT BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority "), as follows: Section 1. Recitals. 1.01. The Authority has previously established a Comprehensive Housing Rehabilitation Program for the City of Fridley's Hyde Park Neighborhood (the "Hyde Park Program ") for the residents of the City of Fridley's Hyde Park neighborhood. 1.02. It has been proposed that the Authority now establish a Comprehensive Housing Rehabilitation Program for the entire City of Fridley (the "Program ") for the residents of all of the City of Fridley's neighborhoods. 1.03. The Authority has entered into the necessary agreements to implement the Hyde Park Program by executing a consulting agreement with the Center for Energy and Environment (the "CEE"). 1.04. It has been proposed that the Authority now enter into the necessary agreements to implement the City wide Program by executing the City wide consulting agreement with CEE (the "Agreement "). Section 2. Findings. 2.01. The Authority hereby finds that its area of operation in which to implement the Program is the area within the territorial boundaries of the City as provided for in Minnesota Statutes, Section 469.002, Subd. 8 and that the Program will be available to the residents of all of the City's neighborhoods. Page 2 - HRA Resolution No. 8 - 1996 2.02. The Authority hereby finds that the adoption of the Program promotes the purposes of the Authority as those purposes are defined in Minnesota Statutes, Section 469.001, et sea. (the "Act "). 2.03. The Authority hereby finds that the Program will assist in the alleviation of shortages of decent, safe and sanitary residential housing available within the City at prices affordable to persons and families of low or moderate income as described therein. 2.04. The Authority hereby finds that preservation of the quality of life in the City is dependent upon the maintenance, provision, and preservation of an adequate housing stock; that accomplishing this is a public purpose in that there are many residences in the City which require rehabilitation; that a need exists to provide in a timely fashion affordable housing to persons of low and moderate income as described in the Act and herein residing and expected to reside in the City; that many owners, would -be purchasers or providers of residences are unable to obtain mortgage credit for rehabilitation of residences under current market conditions; and that in establishing its Program the Authority is acting in all respects to benefit the citizens of the City and to serve a public purpose in improving and otherwise promoting their health, welfare and prosperity. Section 3. Authorization of Program. 3.01. The Authority hereby approves and adopts the Program as described in the Description and Guidelines on Schedule A attached to this Resolution. Section 4. Delegation of Power and Duties. 4.01. In accordance with the Act, specifically Minnesota Statutes, Section 429.012, Subd. 1(3), and in accordance with the Description and Guidelines, the officers, agents and employees of the Authority are hereby authorized to take such actions as may be necessary to implement the Agreement and operate the Program. 4.02. The Executive Director or Housing Coordinator are hereby authorized to execute all documents relating to the approval and closing of any loans provided for in the Program. Page 3 - HRA Resolution No. 8 - 1996 4.03. The Executive Director or the Chairman are hereby authorized to approve payments for Program loans and any costs or fees incurred as a result of implementing the Agreement. Section 5. Authorization for Execution of the Agreement. 5.01. The Authority hereby approves the Agreement substantially in the form presented to the Authority and authorizes its Chairman and Executive Director to execute the Agreement on behalf of the Authority with such additions and modifications as those officers may deem desirable or necessary as evidenced by the execution thereof. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS 11TH DAY OF APRIL, 1996. LAWRENCE R. COMMERS - CHAIRPERSON ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR Page 4 - HRA Resolution No. 8 - 1996 SCHEDULE A DESCRIPTION AND GUIDELINES COMPREHENSIVE HOUSING REHABILITATION PROGRAM FOR THE CITY OF FRIDLEY I. SINGLE FAMILY LOAN PROGRAMS A. INTEREST RATE WRITE DOWN PROGRAM 1. Loan Description The purpose of this program is to reduce the cost of borrowing money to improve owner - occupied, residential homes. This program will only be used in conjunction with the following Minnesota Housing Finance Agency (the "MHFA") loan programs: * The Great Minnesota Fix -Up Fund * The Community Fix -Up Fund * The Home Energy Loan Fund A summary of these MHFA programs is provided below. Depending on the borrower's financial status the Authority will write -down the interest rate to five (5) percent. Some MHFA loans will be originated at less than five (5) percent, in which case the Authority will not provide any interest subsidy. MHFA Program Summary a. The Great Minnesota Fix -Up Fund Provides fixed -rate, home improvement loans up to $15,000 at interest rates from two (2) percent to eight (8) percent, depending on the borrower's income. Maximum term is 15 years. The borrower must meet the following guidelines: * Household income less than $41,000. * Have good credit and the ability to meet normal lender underwriting standards for credit history, debt -to- income ratio, equity in home, etc. * Own and occupy the property to be improved; property cannot have more than 4 units. * Meet other criteria as required by the MHFA. The MHFA has established an interest rate schedule for borrowers which is described on the next page. Page 5 - HRA Resolution No. 8 - 1996 a. The Great Minnesota Fix -Up Fund (cont.) Adjusted Gross Interest Income Rate $0- $10,000 2% $10,001- $15,000 4% $15,001 - $21,000 6% $21,001 - $41,000 8% Only Great Minnesota Fix -Up Fund loans originated at the six (6) and eight (8) percent levels will be subsidized (i.e. written down to five (5) percent) by the Authority. b. The Community Fix -Up Fund Provides fixed -rate, home improvement loans up to $25,000 at an interest rate of eight (8) percent. Maximum term is 20 years. The borrower must meet the following guidelines: * Household income less than $58,650. * Have good credit and the ability to meet normal lender underwriting standards for credit history, debt -to- income ratio, equity in home, etc. * Own and occupy the property to be improved; property cannot have more than 4 units. * Meet other criteria as required by the MHFA. All Community Fix -Up Fund loans will be subsidized (i.e. written down to five (5) percent by the Authority. C. The Home Energy Loan Fund Provides fixed -rate, home energy loans up to $5,000 at an interest rate of eight (8) percent. Maximum term is 5 years. The borrower must meet the following guidelines: * No income limit, however must have sufficient income to repay loan. * Have good credit and the ability to meet normal lender underwriting standards for credit history, debt -to- income ratio, equity in home, etc. Page 6 - HRA Resolution No. 8 - 1996 * Own and occupy the property to be improved; property cannot have more than 2 units. * Meet other criteria as required by the MHFA. All Home Energy Fund loans will be subsidized (i.e. written down to five (5) percent) by the Authority. 2. Funding Source The Interest Rate Write Down Program will be funded by the Authority. The MHFA loans described in Section I(A)(1)(a -c) will be originated by the Center for Energy and Environment (the "CEE ") and sold to the MHFA. 3. Program Administrator The Center for Energy and Environment will market, administer and close all loans under this program. 4. Qualifications Income Limits: $58,650. This means projected annual household income as defined by the MHFA Home Improvement Loan Program Procedural Guide. Underwriting: Borrowers must meet MHFA underwriting guidelines for the programs described in Section I (A) (1) (a -c) . Equity: Same as above. Property Type: Owner - occupied, 1 to 4 unit residential properties located in Fridley. 5. Program Specifics Borrowers may not receive more than $6,000 in Interest Rate Write Down Program funds per property improved. Any Interest Rate Write Down greater than $1,500 requires a post - installation inspection to verify that improvements have been made. 6. General Requirements This program is available to any homeowner in the City of Fridley which meets the guidelines of the programs described in Section I(A)(1)(a -c). Page 7 - HRA Resolution No. 8 - 1996 7. Improvements Borrowers shall use funds under this program to make permanent repairs and improvements to their properties. Improvements shall be limited to those defined in the most current version of the MHFA Home Improvement Loan Program Procedural Guide. B. REVOLVING LOAN PROGRAM 1. Loan Description This program is intended to address the home improvement financing needs of borrowers who cannot qualify for an MHFA loan as described in Section I(A)(1)(a -c), but who can afford to make a monthly payment. This program fills a programming gap not addressed by other Authority, public or private institutions. 2. Funding Source The Revolving Loan Program will be funded solely by the Authority. 3. Program Administrator The Center for Energy and Environment will market, administer and close all loans under this program. 4. Qualifications Income Limits: $58,650. This means projected annual household income as defined by the MHFA Home Improvement Loan Program Procedural Guide. Underwriting: Borrowers who don't meet normal lender underwriting criteria and fall into the following categories: a. Debt -to- Income Ratios not to exceed 50 %. b. Loan -to -Value Ratios not to exceed 115%. C. May have marginal credit, but have the ability to make a monthly payment. Page 8 - HRA Resolution No. 8 - 1996 Property Type: Owner - occupied, 1 to 4 unit residential properties located in Fridley. 5. Proqram Specifics The Revolving Loan will carry an annual interest rate of five (5) percent and must be repaid in monthly installments. The maximum Revolving Loan shall not exceed $25,000. The maximum term shall not exceed 20 years. All Revolving Loans will be secured with a separate mortgage. 6. General Requirements This program is available to any homeowner in the City of Fridley who meets the income, credit, and other program requirements in Section I (B)(1 -7) or as otherwise approved by the Authority. 7. Improvements Borrowers shall use funds under this program to make permanent repairs and improvements to their properties. Improvements shall be limited to those defined in the most current version of the MHFA Home Improvement Loan Program Procedural Guide. C. LAST RESORT LOAN PROGRAM 1. Loan Description This program is designed for those homeowners who cannot qualify for any other Authority loan or grant programs. Funding will be provided in the form of a deferred payment loan up to $10,000. Interest on a Last Resort Loan will be calculated as follows: * For the first ten years, 2% (simple interest) charged on the principal balance. * After ten years, no interest shall be charged. The Last Resort Loan is due and payable when the home is sold or after twenty (20) years from the date of the loan note, whichever comes first. The Last Resort Loan may be prepaid at any time. The Authority, may at its discretion, extend the maturity date of a Last Resort Loan. Page 9 - HRA Resolution No. 8 - 1996 2. Funding Source The Last Resort Loan Program will be funded solely by the Authority. 3. Program Administrator The Center for Energy and Environment will market, administer and close all loans under this program. 4. Qualifications Income Limits: $58,650 Underwriting: This is a last resort program and as such applicants shall be selected for this program only if they are unable to qualify for financing through other Authority programs. The Authority and the Program Administrator shall work in cooperation to identify all possible resources before an applicant can be considered for this program. Equity: The Last Resort Loan shall be secured with a separate mortgage. Property Type: Owner - occupied, 1 to 4 unit residential properties located in the City of Fridley. 5. Program Specifics The Last Resort Loan is designed specifically for homeowners in the City of Fridley who can't qualify for a loan or a grant. Acceptable criteria include, but are not limited to: a. Borrowers who have existing financial obligations and /or insufficient income to qualify for a loan. b. Debt -to- income ratios in excess of 50 %. C. Loan -to -value ratios in excess of 115 %, but not greater than 125 %. d. Borrowers who have had credit problems, such as slow payment. Page 10 - HRA Resolution No. 8 - 1996 e. Borrowers who can't qualify for any CDBG or HOME program funding because their incomes exceed the program guidelines. This program is not available to borrowers with Pending bankruptcies or foreclosures, unpaid judgements or liens, or non - payment of real estate taxes /assessments. 6. General Requirements This program is available to any homeowner in the City of Fridley with incomes up to $58,650 per year who meet the criteria in section I(C)(1 -7). 7. Improvements Borrowers shall use funds under this program to make permanent repairs and improvements to their properties. Improvements shall be limited to those defined in the most current version of the MHFA Home Improvement Loan Program Procedural Guide. All properties shall be inspected prior to the approval of any financing. The Authority will only disburse funds to the contractor /s directly after an inspection has been conducted and the homeowner signs a completion certificate. II. MULTIPLE FAMILY LOAN PROGRAMS A. RENTAL REHABILITATION LOAN PROGRAM 1. Loan Description The Rental Rehabilitation Loan Program is funded by the Minnesota Housing Finance Agency and is intended to help rental property owners complete improvements which increase the livability and energy efficiency of their properties. The program provides loans at 6% simple interest with repayment terms up to 15 years. The maximum amount that can be borrowed is based on the number of units in the property. 1 and 2 Unit Buildings Minimum: $ 1,000 Maximum: $25,000 Page 11 - HRA Resolution No. 8 - 1996 3 or More Units Minimum: $1,000 Maximum: Lesser of $10,000 per unit, not to exceed $100,000 per structure. All loans over $5,000 must be secured with a separate mortgage against the property to be improved. 2. Fundinq Source The Rental Rehabilitation Loan Program will be solely funded by the MHFA. CEE will originate and sell loans directly to MHFA. The Authority will not provide any funding under this program. 3. Program Administrator The Center for Energy and Environment will market, administer and close all loans under this program. 4. Qualifications Income Limits: None Underwriting: The property generally must show positive cash flow after the rehabilitation work is complete. For loans which are unsecured, the borrower must have the ability to repay the loan based on their own personal finances. For loans which are secured, the property must show positive cash flow after the rehab is completed. Equity: The borrower must have sufficient equity in the property, if the loan exceeds $5,000. Property Type: Non - owner - occupied, residential rental properties located in the City of Fridley. 5. Program Specifics After the improvements are completed a certain portion of the units must be occupied by households with Page 12 - HRA Resolution No. 8 - 1996 incomes less than 80% of the state median income. 6. General Reauirements This program is available to any rental property owner in the City of Fridley who meets the guidelines of the programs as described in Section II(A)(1 -7). 7. Improvements Borrowers shall use funds under this program to make permanent repairs and improvements to their properties. Improvements shall be limited to those defined in the most current version of the MHFA Rental Rehabilitation Loan Program Procedural Guide. B. RENTAL ENERGY LOAN PROGRAM 1. Loan Description The Rental Energy Loan Program is funded by the Minnesota Department of Public Service and uses Exxon Oil Overcharge funds. The program provides loans at 4% simple interest with repayment terms up to 5 years. The minimum and maximum loan amounts are as follows: Minimum: $500 Maximum: $10,000 All loans over $3,500 must be secured with a separate mortgage against the property to be improved. 2. Funding Source The Rental Energy Loan Program will be solely funded by the Minnesota Department of Public Service. CEE will originate and sell loans directly to MnDPS. The Authority will not provide any funding under this program. 3. Program Administrator The Center for Energy and Environment will market, administer and close all loans under this program. 4. Qualifications Income Limits: None Page 13 - HRA Resolution No. 8 - 1996 Underwriting: The property generally must show positive cash flow after the rehabilitation work is complete. For loans which are unsecured, the borrower must have the ability to repay the loan based on their own personal finances. For loans which are secured, the property must show positive cash flow after the rehab is completed. Equity: The borrower must have sufficient equity in the property, if the loan exceeds $5,000. Property Type: Non owner - occupied, residential rental properties located in the City of Fridley. 5. Program Specifics None. 6. General Reauirements This program is available to any rental property owner in the City of Fridley who meets the guidelines of the programs described in Section II(B)(1 -7). 7. Improvements Borrowers shall use funds under this program to make permanent repairs and improvements to their properties. Improvements shall be limited to those defined in the most current version of the Minnesota Department of Public Service Rental Energy Loan Fund Procedural Guide. C. LAST RESORT RENTAL LOAN PROGRAM 1. Loan Description This program is designed for those rental property owners who cannot qualify for any other Authority loan or grant programs. Funding will be provided in the form of a deferred payment loan up to $10,000 per unit, not to exceed $50,000 per structure. * For the first ten years, 2% (simple interest) charged on the principal balance. Page 14 - HRA Resolution No. 8 - 1996 * After ten years, no interest shall be charged. The Last Resort Loan is due and payable when the home is sold or after twenty (20) years from the date of the loan note, whichever comes first. The Last Resort Loan may be prepaid at any time. The Authority, may at its discretion, extend the maturity date of a Last Resort Loan. 2. Funding Source The Last Resort Rental Loan Program will be funded solely by the Authority. 3. Program Administrator The Center for Energy and Environment will market, administer and close all Last Resort Rental Loan Program Loans. 4. Qualifications Income Limits: No income limit. Underwriting: This is a last resort program and as such applicants shall be selected for this program only if they are unable to qualify for financing through other Authority programs. The Authority and the Program Administrator shall work in cooperation to identify all possible resources before an applicant can be considered for this program. Equity: The Last Resort Loan shall be secured with a separate mortgage. Property Type: Non - owner - occupied, residential rental properties located in the City of Fridley. 5. Program Specifics The Last Resort Rental Loan Program is designed specifically for rental property owners who can't qualify for a loan or a grant. Because there are numerous variables which are used when underwriting a multiple family rental loan, it is difficult to list all of the scenarios which would qualify an applicant for the Last Resort Rental Loan Program. Page 15 - HRA Resolution No. 8 - 1996 In general, the following criteria will be used as primary factors: a. Borrowers who have a negative cash flow on their property. b. Borrowers who have no equity in their property and the Loan -to -Value Ratio (with the new debt) which exceeds 1000, but is not greater than 125 %. C. Borrowers who have had credit problems, such as slow payment. This program is not available to borrowers with pending bankruptcies or foreclosures, unpaid judgements or liens, or non - payment of real estate taxes /assessments. 6. General Requirements This program is available to rental property owners on a case -by -case basis. The Authority Board of Commissioners shall specifically approve all Last Resort Rental Loans in excess of $10,000. 7. Improvements Borrowers shall use funds under this program to make permanent repairs and improvements to their properties. Improvements shall be limited to those defined in the most current version of the MHFA Rental Rehabilitation Loan Program Procedural Guide. HRA RESOLUTION NO. 9 - 1996 RESOLUTION AUTHORIZING EXECUTION OF A LOAN SERVICING AGREEMENT WITH THE COMMUNITY REINVESTMENT FUND, INC. WHEREAS, the Housing and Redevelopment Authority in and for the City of Fridley (the "HRA ") has developed a Comprehensive Housing Rehabilitation Program to assist property owners in maintaining and improving their properties; and WHEREAS, the HRA has established a Revolving Loan Program to meet the needs of homeowners who are unable to qualify for financial assistance through other HRA programs; and WHEREAS, the HRA has determined that it would be cost - effective to utilize an outside contractor to service the Revolving Loans; and WHEREAS, the Community Reinvestment Fund, Inc. (the "CRF") has the capability and experience to service the Revolving Loans. NOW, THEREFORE, BE IT RESOLVED THAT, the HRA hereby accepts CRF's proposal to service the HRA's Revolving Loan Program on the following conditions: 1. CRF's initial loan set -up fee shall not exceed $15.00 per loan nor shall the monthly service fee exceed $4.50 per loan. 2. The Chair and Executive Director are hereby authorized to execute a Loan Servicing Agreement with CRF. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS 11TH DAY OF APRIL, 1996. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR CITY OF FRIDLEY HOUSING is REDEVELOPMENT AUTHORITY MEETING FEBRUARY 8, 1996 CALL TO ORDER: Chairperson Commers called the February 8, 1996, Housing and Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, Jim McFarland, John Meyer Members Absent: Duane Prairie Others Present: William Burns, Executive Director Barbara Dacy, Community Development Director Jim Casserly, Financial Consultant Grant Fernelius, Housing Coordinator Craig Ellestad, Accountant Joe Paulzine, 681 Glencoe B. Paulzine, 10472 - 6th Street APPROVAL OF JANUARY ll 1996 HOUSING AND REDEVELOPMENT AUTHORITY MINUTES• MOTION by Ms. Schnabel, seconded by Mr. McFarland, to approve the January 11, 1996, Housing and Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA• 1. REVENUE AND EXPENSES 2. CONSIDER LEGAL SERVICES CONTRACT WITH FREDERICK W. KNAAK 3. CONSIDER APPROVAL OF TEMPORARY CONSTRUCTION EASEMENT ON LOT 4, BLOCK 1, SCHERER ADDITION MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the Consent Agenda. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS• HOUSING & REDEVELOPMENT AUTHORITY MTG., FEBRUARY S. 1996 PAGE 2 4. CONDUCT PUBLIC HEARING REGARDING SALE OF 5981 - 3RD STREET, 623 LAFAYETTE STREET, AND 683 GLENCOE STREET MOTION by Ms. Schnabel, seconded by Mr. McFarland, to waive the reading of the public hearing notice and to open the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPEN AT 7:40 P.M. Mr. Fernelius stated three properties are being considered. The first is 5981 - 3rd Street N.E. which is located in Hyde Park south of 61st and University near the "slip off" ramp. This lot is one of two lots obtained from the City which was previously acquired at the Custom Mechanical site. when selling properties last fall, two tie bids were received. The.HRA at its November meeting rejected both bids and established a December deadline for new bids. Two offers were received from the same bidders - Tams, Inc. with a bid of $5,100 and Whitney Homes with a bid of $5,050. Mr. Tam will be building a house on the lot next door to the south. Staff has requested he use a different floor plan so we do not have two identical homes side by side. Mr. Tam has indicated he has the ability to meet all of the development requirements. If approved, we would execute a development with Mr. Tam. Mr. Fernelius stated the second property is located at 683 Glencoe. The HRA has owned this property for about 18 months. On the property was a small house and garage which were torn down. The lot has remained vacant. The HRA has maintained that property. The neighbor next door, Mr. Paulzine, has expressed interest in buying the property and submitted an offer of $3,000 for the lot. His mother has agreed to help financially. The requirement would be that he combine the two parcels into one tax parcel. Mr. Fernelius stated the third property is at 623 Lafayette Street. Mr. Tam had originally planned to develop this property but then decided not to. Staff contacted the second bidder, Whitney Homes, who agreed to develop the property. The development will likely occur in late spring or early summer. The June 30 deadline may have-to be pushed back because of activities that need to take place on this property, such as the sewer and water. Mr. Fernelius stated staff recommends the HRA approve the resolution authorizing the sale of these properties. The Commissioners had no questions of staff. Mr. Commers asked for comments from the public. HOUSING _& REDEVELOPMENT AUTHORITY MTG., FEBRUARY S. 1996 PAGE 3 Mr. Paulzine stated he is interested in the property at 683 Glencoe Street. He wants to make his lot a legal size lot. His current lot is small. Mr. Commers stated he understood that Mr. Paulzine was prepared, with the help of his mother, to purchase the property for $3,000. He asked Mr. Paulzine the size of his lot as it now exists. Mr. Paulzine stated his lot is now approximately 62 feet. By purchasing this lot, it will add another 50 feet. Mr. Commers stated this would then make a nice sized lot. He asked who has maintained the property. Mr. Fernelius stated the HRA has maintained the property. The HRA purchased the property from the previous owner and cleared the existing structures. No further comments were made by the public. MOTION by Ms. Schnabel, seconded by Mr. Meyer, to close the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 8:45 P.M. MOTION by Mr. McFarland, seconded by Ms. Schnabel, to adopt a Resolution Authorizing the Sale of Real Property at 5981 - 3rd Street N.E.; Resolution Authorizing the Sale of Real Property at 683 Glencoe Street N.E.; and Resolution Authorizing the Sale of Real Property at 623 Lafayette Street N.E. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. CONSIDER RESOLUTION TO AUTHORIZE EXECUTION OF DEVELOPMENT CONTRACT WITH ROTTLUND HOMES INC. Mr. Commers asked why staff wished to authorize the execution of this contract when there were still so many open items. Ms. Dacy stated, since the material was prepared for the agenda packet, she and Mr. Casserly have talked with Mr. Stutz from Rottlund on several occasions, and they are prepared to state they have an agreement with Rottlund on the major business terms of the development contract. Rottlund has agreed to the land sale payment. They have also agreed to some of the changes discussed regarding the insurance requirements of the City Council pertaining to the prevailing wage issue. Those items have been reviewed with Mr. Stutz, and he has agreed to those. Items that still need to be resolved include the scheduling of HOUSING & REDEVELOPMENT AUTHORITY MTG.. FEBRUARY A. 1996 PAGE 4 the closing. They are asking for additional documentation of the environmental testing at the Fast Lube site. Mr. Casserly is prepared to go through the contract in detail. Staff is asking the HRA to pass the resolution to authorize execution of the development contact, but staff would not have the Chairperson and Executive Director sign the contract until all the schedules have been adopted, until the City Council adopts the plans, and until they can revise some of the details in the agreement. Mr. Commers asked what controls the HRA has over the construction itself. Mr. Casserly stated the City has its normal process where it issues a building permit with plans.. We have tremendous control because we do not release control of the property if they do not meet criteria by issuing a Certificate of Completion. Mr. Commers asked where they were on the architectural controls and the materials controls. Ms. Dacy stated the City Council has completed the public hearing. These items are now being prepared by Rottlund. If approved tonight, they will be presented to the City Council on February 26. The City Council requested the HRA approve the development contract prior to their approval of the zoning and platting. Staff would make sure the Council approves all of those items. Once that is accomplished, they become the attachments to the development agreement. Mr. Commers stated he thought the HRA had something to say about the architecture. Ms. Dacy stated that was true. This is not to pre -empt that. Because of the revision of the site plan, what the HRA saw of the three -story units has essentially remained the same. The architecture of the two -story units has essentially remained the same. The floor plan for the one -story cottages is now a little smaller. The City Council is in the process of finalizing the plans. She provided a copy of the blueprints for review. Ms. Schnabel stated she thought a consultant would be adopting standards. What happened to that person and their ideas? Ms. Dacy stated they had a consultant evaluate the first set of plans. Most of the design criteria were met. She did not have them review future plans. The architect is developing a floor plan for the two story with a master bedroom on the main floor and the one -story and two -story elevations. Mr. Burns has requested an interior products list to be submitted. Mr. Meyer reviewed the plans. He could not determine by the HOUSING 6 REDEVELOPMENT AUTHORITY MTG. , FEBRUARY 8 1996 PAGE 5 floor plans the quality of the units. The big thing is the interior specifications and the exterior finishes. Mr. Commers asked if that would be taken to the City Council. Ms. Dacy stated yes. The City Council has asked the HRA to act on the development contract. Staff is asking the HRA to approve the resolution. Staff would present the final plans to the City Council so they could act on it. At the March meeting, staff would come back to the HRA with final plans. If the HRA is satisfied, the chairperson and executive director could then sign the plans. r Mr. Commers stated he would like the HRA members to be invited to the Council meeting where the product list is presented. He asked Mr. Meyer to review that list. Ms. Schnabel asked if there were any units currently built or similar models they could look at. Ms. Dacy thought the village homes and the eight -unit townhomes were a variation of similar products. Mr. Commers asked Ms. Dacy to provide members with a listing of Rottlund s most similar projects. Mr. Burns stated they have a big project in Inver Grove Heights off Route 3. He thought these would provide a good idea of the quality of the interiors. Ms. Dacy stated she would check and let members know. Mr. Meyer stated, if adding amenities, this will affect to the cost. The City Council should know our objections before signing the final papers. Mr. Commers asked Ms. Dacy to notify members of the Council meeting so that members can attend if available. Ms. Dacy stated, if all goes well, the first meeting if February 26. The next meeting if March 4. Mr. Burns stated, when Rottlund submits their list of items, perhaps Mr. Meyer could participate with staff and the building inspector in reviewing that list. Ms. Dacy stated she hoped to receive the list on Monday. If she receives the list on that day, she can forward a copy to Mr. Meyer. Mr. Meyer stated it would be helpful to have the list ahead of HOUSING & REDEVELOPMENT AUTHORITY MTG., FEBRUARY A. 1996 PAGE 6 time to provide time to review it before the Council meeting. Mr. Meyer asked if the prevailing wage rate issue had been resolved. Mr. Commers stated the City Council voted 3 -2 to exempt housing from the prevailing wage rate issue. MOTION by Mr. McFarland, seconded by Ms. Schnabel, to approve 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., with the understanding that the Chairperson and the Executive Director will not sign the agreement until the plans and schedules are reviewed and the details furnished. UPON A VOICE VOTES ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Casserly stated there is an environmental issue that is nagging that may take three to four weeks to resolve. It has to do with who will hold title to the site that was the former gas station. There are contaminants identified at the site. Rottlund wants to own but they do not want to take title until the PCA signs off on the site. Ms. Dacy stated the PCA had indicated they agreed with the plan to proceed with remedial investigation and our recommendation to do more remedial testing. If the testing results indicate a low amount of contaminants, the PCA would then issue a letter of closure and not require addition remediation. The tanks have been removed and they have applied for petrol fund reimbursement for the studies that have been done. Mr. Casserly stated this is an issue on which we will have to sign off. The issue is one that Rottlund will not accept title unless they are comfortable that the portions they are taking are free of contamination. On the portion of land on which they are building, no pollution has been discovered. We will give them everything we have. There is nothing more we can do. Mr. Commers asked if the final contract would be contingent upon Rottlund accepting title to all the property. Mr. Casserly stated it would probably be a two -step process. In 90 days, we will close on the property that Rottlund will build on. We will hold the park property until such time it is approved by the PCA. 6. CONSIDER APPROVAL OF 1996 BUDGET HOUSING is REDEVELOPMENT AUTHORITY MTG., FEBRUARY 8, 1996 PAGE 7 MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the 1996 budget. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: 7. UPDATE ON REMODELING FAIR Mr. Fernelius stated staff are continuing their plans for the Home Remodeling Fair on Saturday, April 20. He is pleased to announce that Home Depot has made a verbal commitment to be a sponsor and provide a substantial commitment. Staff are also talking with some of the other retailers in town so they may also see some additional sponsorship from them. He thought this would be a nice time of the year and that they would have a good turnout. Mr. Commers asked how this was being publicized. Mr. Fernelius stated the event Newsletter, the Fridley Focus, make people aware of the fair. 8. LAKE POINTE UPDATE would be publicized in the City utility bills, etc. Staff will Ms. Dacy stated she had no additional information from what was included in the agenda packet. Ms. Dacy distributed copies of an article entitled, "Fridley prepares to develop Lake Pointe" which appeared in the February 5, 1996, issue of the Minnesota Real Estate Journal. Mr. Burns stated he had gotten an appraisal back and submitted that to MEPC. MEPC is now in the process of contacting Mr. Torgeson regarding a hotel facility.- He thought he would have communication back shortly. 9. FRANK'S USED CAR SITE UPDATE Mr. Burns stated the relocation consultant met with him and the residential property owners. 'He thought they had a cordial meeting. They are now in the process of suggesting comparable buildings for relocation and starting to negotiate relocation costs. OTHER BUSINESS• 10. ADDITIONAL EXPENSES Mr. Ellestad provided copies of additional expenses needing HOUSING & REDEVELOPMENT AUTHORITY MTG., FEBRUARY 8, 1996 PAGE 8 approval. MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the additional expenses as outlined in Mr. Ellestad's memo of February 8, 1996. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ADJOURNMENT: MOTION by Ms. Schnabel, seconded by Mr. McFarland, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE FEBRUARY 8, 1996, HOUSING AND REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 8:40 P.M. Respectfully submitted, Lavonn Cooper / Recording Secretary S I G N— I N S H E E T HOUSING AND REDEVELOPMENT AUTHORITY MEETING, February 8, 1996 TO: FRIDLEY H.R.A FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES FEBRUARY1996 FEBRUARY 19J6, „ ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES ADMINISTRATIVE OVERHEAD COMPUTER OVERHEAD (For Micro & Mini computers) TOTAL ADMINISTRATIVE BILLING: OPERATING EXPENSES: POSTAGE BY PHONE PETTIBONE & CO — MINUTE BOOKS PETTIBONE & CO — MINUTE BOOKS USE TAX SIGN LANGUAGE — NAMEPLATE PETERSON ENVIRONMENTAL — LGU ASSIST POSTAGE BY PHONE U.S. WEST — PHONE SERVICE CITY OF FRIDLEY — POP SENSIBLE LAND USE COALITION — REGISTRATION Account #'s for HRA's Use 460 -0000- 430 -4107 262 - 0000 - 430 -4332 460- 0000 - 430 -4221 460 - 0000 - 430 -4221 460 -0000- 430 -4221 460 - 0000 - 430 -4330 460 -0000- 430 -4332 460 - 0000 - 430 -4332 460-0000-430-4337 460 -0000- 430 -4337 TOTAL OPERATING EXPENSES: BENEFITS EXPENSES: CITY OF FRIDLEY — HEALTH INS, FEB & MAR 262 -0000- 219 -1001 CITY OF FRIDLEY — DENTAL INS, FEB & MAR 262 -0000- 219 -1100 CITY OF FRIDLEY — LIFE INS, FEB 262 -0000- 219 -1200 TOTAL BENEFITS EXPENSES TOTAL EXPENDITURES — File: \123DATA\HRA \TIF\96BILL.wk1 Details FEBRUARY 1996 1 19,800.75 275.85 200.25 20, 276.85 28.22 82.90 4.54 30.72 10.50 18.33 14.44 5.00 40.00 234.65 364.80 41.06 3.50 409.36 X20,92© SiS Account #'s for City's Use 101 - 0000 - 341 -1200 101 -0000- 336 -3000 101 - 0000 - 336 -3000 • tell 111 • •••• elf • •••• ell ells let fell ••• self ell ills 111 loll ell •ell 111 236 -0000- 219 -1001 236 -0000- 219 -1100 236 -0000- 219 -1200 TO: FRIDLEY H.R.A FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES MARCH 1996 ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES ADMINISTRATIVE OVERHEAD COMPUTER OVERHEAD (For Micro & Mini computers) TOTAL ADMINISTRATIVE BILLING: OPERATING EXPENSES: POSTAGE BY PHONE U.S. WEST — PHONE SERVICE CITY OF FRIDLEY — PHOTOS POSTAGE BY PHONE BENEFITS EXPENSES: CITY OF FRIDLEY — HEALTH INS, APR CITY OF FRIDLEY — DENTAL INS, APR CITY OF FRIDLEY — LIFE INS, MAR & APR Account #'s for Account #'s for HRA's Use 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 20,276.85 262 -0000- 430 -4332 262 -0000- 430 -4332 460 -0000- 430 -4337 460 -0000- 430 -4332 TOTAL OPERATING EXPENSES 262 -0000- 219 -1001 262-0000-219-1100 262 -0000 -219 -1200 TOTAL BENEFITS EXPENSES TOTAL EXPENDITURES — MARCH 1996 File: \123DATA \HRAVnF196l3lLL.Wk1 Details 1A 65.81 236-0000-336-3000 14.60 236 -0000- 336 -3000 19.86 236 -0000- 336 -3000 63.56 236 -0000- 336 -3000 163.83 182.40 236 -0000- 219 -1001 20.53 236 -0000- 219 -1100 7.00 236 -0000- 219 -1200 209.93 ;$20,650.61 � M W W a W 4 m a E z r K O a w i r o o O O o vn 2 O O O O O O 07 a m � N O O O CD n O° �°n coo rn a O p W N U W i r U W O a Z N W N W a O W a 2 r W N J r r Y Q Z 2 LU W W O .N-. 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ON "I al a a, a, D, a, D, 01 C, a- "I C, 1� C- a, 1� GN ,- a, 06- (), 1� CN CN 01 C�- C, 11 01- D- 0- D- C�l a 0- 01 CK In' 011 Q, cs a- a, 01 01 0- D- 0� C- 01 01 C, 61 0. ;,), a, ON a, 01 11 a- DI ul a- a, 01 as _-1 01 C- a 01 01 0- 01 D, C, D, 1-4 14 H -f 14 H H H .14 1-4 H H 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 fl, n 1H z W MEMORANDUM HOUSING AND REDEVELOPMENT DATE: April 5, 1996 AUTHORITY TO: William Burns, Executive Director of HRA 4�f4�' FROM: Barbara Dacy, Community Development Director SUBJECT: Consider Resolution Authorizing Reimbursement to the City of Fridley for the Mississippi Street Reconstruction Project As part of the Southwest Quadrant redevelopment process, Anoka County required certain improvements to be made to the intersection of 3rd Street and Mississippi Street. The cost of the intersection will be shared by the HRA, Rottlund, Anoka County, and Holly Center. Holly Center has agreed to be assessed for the cost. Because the project will be administered by the City, the HRA needs to pay the City its share of the project cost. The developer is to pay its share to the HRA upon sale /closing of the project; therefore, the HRA will also include the developer's share when reimbursing the City. The total project cost is $162,237.69. Each share is $40,559.42. The HRA will disburse $83,118.84 after the funds are received from Rottlund and after the appropriate construction documentation has been reviewed by the City Engineer. RECOMMENDATION Staff recommends the HRA approve the attached resolution. BD /dw M -96 -114 --I HRA RESOLUTION NO. I - 1996 RESOLUTION AUTHORIZING REIMBURSEMENT TO THE CITY OF FRIDLEY FOR THE MISSISSIPPI STREET /3RD STREET INTERSECTION CONSTRUCTION PROJECT WHEREAS, Anoka County has required certain public improvements to be completed to the Mississippi Street and 3rd Street intersection as a result of the Southwest Quadrant: redevelopment project; and WHEREAS, the City of Fridley will administer and oversee the project's construction; and WHEREAS, the cost of the improvements will be shared equally by Holly Center, Anoka County, Rottlund Homes, Inc., and the Fridley Housing & Redevelopment Authority; and WHEREAS, Holly Center has submitted a letter consenting to be assessed by the City for their share of the costs; and WHEREAS, the Authority will receive Rottlund's share upon sale of the property; and WHEREAS, Anoka County will reimburse the City; and WHEREAS, the total project cost is estimated to be! $162,237.69. NOW, THEREFORE, BE IT RESOLVED that the Authority agrees to reimburse the City of Fridley up to one -half of the construction cost as currently estimated for the completion of the public improvements at the intersection of Mississippi Street and 3rd Street. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS DAY OF , 1996. LAWRENCE R. COYMERS - CHAIRMAN ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR "'T so MEMORANDUM HOUSING AND REDEVELOPMENT AUTHORITY DATE: March 8, 1996 h TO: William Bums, Executive Director of HRA A FROM: Barbara Dacy, Community Development Director Grant Femelius, Housing Coordinator SUBJECT: Consider Acquisition of 6431 Jackson St. NE This property is a HUD foreclosure. The home was built in 1959, but in recent years has been added onto several times. The most recent owner added on a garage and was attempting to replace some of the windows, but didn't complete either project before abandoning the home. The City's property records indicate that there have been several complaints from neighbors about the condition of the home. Kurt Schneider, Code Enforcement Officer sent a letter to the mortgage company on January 9, 1996 alerting them to the complaints. On March 7, 1996 Grant Femelius, Ron Julkowski (Chief Building Official) and Barry Riesch (Building Inspector) conducted a site visit and made the following observations: 1. The home is a split -entry design, with a small family room at grade level; a large living room and kitchen on the 2nd level; three small bedrooms and a bathroom on the 3rd level. The lower level is unfinished, but is divided into a small mechanical /laundry room area and a separate storage area. 2. The general condition of the property is poor and a significant amount of rehabilitation work would be required to bring the property up to code, including: * Gutting the 3rd level with new windows, interior doors, new electrical and plumbing, completing the bathroom and probably rearranging the floor plan. 6431 Jackson St. Memo March 8, 1996 Page 2 * The heating system, and water heater both need to replaced because they froze and were severely damaged. The electrical system has been substantially altered in the basement and would probably need to be replaced. * The remaining part of the home would also have to be finished with new windows, doors and trim. Significant sheet rock repairs would also have to be made. 3) The siding would have to be replaced and the garage requires repair work to to bring it up to code. There are also signs of stress fractures in some of the ceilings; the front wall and block wall in basement on northeast side are bowed. There is also concern that the kitchen and back porch additions are poorly constructed and may hide some deficiencies. Perhaps the most significant observation is the floor plan of the home. Based on the walk though visit, it doesn't appear to be very functional. The large living room and kitchen consume much of the square footage and the bedrooms are somewhat 'Wedged" into the 3rd level. Even if significant work (est. $40,000 +) were put into the property, the design and layout of the home are not useful. After conducting the site visit it was felt that the most cost - effective solution would be to tear down the structure. The surrounding properties are in good condition and this property clearly stands out. The acquisition would meet the objectives of the program by removing a blighted property. HUD is offering the property for sale for $45,000 and the HRA as a local unit of government has the ability to acquire the property before it is placed for sale to private buyers. Recommendation Staff recommends that HRA authorize staff to submit an offer to HUD for the purchase of 6431 Jackson St. NE for a price not to exceed $45,000 and authorize the Executive Director to execute any documents to complete the purchase. GF/ M- 96-124 3A MEMORANDUM HOUSING LAWI] REDEVELOPMENT AUTHORITY DATE: March 8, 1996 tP TO: William Bums, Executive Director of HRA 4�0 FROM: Barbara Dacy, Community Development Director Grant Femelius, Housing Coordinator SUBJECT: Consider 1996 HOME Program Application and Matching Funds Anoka County is currently accepting applications for the 1996 HOME Investments Partnership (HOME) Program. This program is funded by U.S. Department of Housing and Urban Development. The County in turn provides the funds to cities, HRA's and non - profits on a competitive basis. The HOME program is very similar to the Community Development Block Grant (CDBG) Program and is intended to address the housing needs of low and moderate income households. The primary difference is that communities must match 25% of the HOME allocation with local dollars. In the last two years the HRA has applied for dndreceived HOME funds. Below is a funding summary. Year HOME HRA Total 1994 $70,000 $17,500 $87,500 1995 $75,000 $18,750 $93,750 $145,000 $36,250 $181,250 The funds have been used to provide home rehabilitation grants to low- income home- owners. A copy of the letter from Alyce Osborn describing the 1996 HOME program is attached. Households who qualify for a grant, can get up to $15,000 to bring their homes up to code. A portion of the money is forgiven each year, however at least 50% must be paid when the homes is sold. Based on our experience over the last 1996 HOME Memo March 8, 1996 Page 2 several years there is a very strong need for this program. Many of the homeowners who apply have no other financial resource available to improve their properties. In the past, the program has been administered by ACCAP, however, we are currently evaluating options on whether we should utilize CEE to administer this program and keep all home improvement programs "under one roof". We will continue to research this option and report back to the HRA at the April or May meeting. As a final note the 1996 budget did include funds for a HOME program match. Recommendation Staff recommends that the HRA authorize staff to prepare an application to Anoka County for $75,000 in FY 1996 HOME funds for housing rehabilitation activities and authorize the expenditure of up to $18,750 in matching funds. GF/ M- 96-126 MAI COUNTY OF ANOKA Urban Anoka County Community Development Block Grant \ GOVERNMENT CENTER 2100 3rd Avenue • Anoka, Minnesota 55303 -2265 • (612) 323 -5709 February 29, 1996 Mr. Grant Fernelius, Housing Coordinator City of Fridley 6431 University Avenue N.E. Fridley, Minnesota 55432 Re: 1996 HOME Program Applications Dear Grant: Anoka County expects to receive HOME funds of $458,597 for the Fiscal Year 1996. Of this amount, $72,410 must be used by an eligible CHDO organization. You are invited to submit an application for those funds to complete an eligible housing project. All applications are due on March 27, 1996. A decision on funding recipients will be made in April. Please keep the following in mind as you consider applying for these funds: Eligible Projects Acquisition, rehabilitation, and construction that provides permanent or transitional owner - occupied or rental housing that serves low income households. Limited tenant assistance is also available. Any single family rehabilitation should target neighborhoods. Any requests for general city -wide housing rehabilitation will have low priority. Income Limits All households served must be at or below 80 percent of the median income in the Minneapolis -St. Paul Area adjusted for family size ($41,600 for a family of four). Matching Requirements Any applications must identify the source of a required match of 25 percent of the amount of HOME funds provided for a project. The match funds must be committed to the HOME program for an indeterminate period of time, which eliminates equity or loans as sources of match. Match requirements are addressed in detail in the attached regulations. Affirmative Action / Equal'-unity Employer Page 2. An application package and a brochure describing the program are enclosed. HOME regulations will be sent upon request. Please call me at 323 -5709 or Sandee Madigan at 323 -5708 if you have any questions. AAO:sw Enclosures Sincerely, Alyce A. Osborn Community Development Manager 4C rANWW GTYOF FRIDLEY FRIDLEY MUNICIPAL CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY, MN 55432 • (612) 571 -3450 • FAX (612) 571 -1287 March 27, 1996 Ms. Alyce Osborn Community Development Manager County of Anoka 2100 3rd Avenue Anoka, MN 55303 Dear Alyce: Attached are two copies of our application for the 1996 HOME program. When available, I can send you copies of the minutes from the HRA meeting which authorized the application. If you have any questions, please feel free to call me at 572 -3591. Thank you. Sincerely, Grant Femelius Housing Coordinator Attachments 1996 HOME Program Application Submitted by: Fridley Housing and Redevelopment Authority 6431 University Avenue N.E. Fridley, MN 55432 March 1996 4E 1996 HOME Application Table of Contents Topic Pages Application 1 - 3 Neighborhood Location Map Appendix 1 4F 1996 HOME Application Page 1 1. Project Summary This project is designed to assist very-low income homeowners in maintaining and improving their homes by offering deferred - payment housing rehabilitation grants. The program addresses code deficiencies and other basic repairs which affect the health, safety and /or livability of a home. The funds will be awarded to individual families which meet the following guidelines: 1) Meet adjusted gross income limits which are based on household size. 2) Own and live in the property to be improved and use it as their prin- cipal place of residence. 3) Have less than $25,000 in assets, not including their home, personal belongings, household furnishings and one vehicle. For selection purposes, households which meet these guidelines will then be ranked according to their incomes and the age of their homes. The HRA will contract with the Anoka County Community Action Program, Inc. to administer the program. 2. Proiect Location The project will be available in the following target neighborhoods in Fridley: Plymouth Addition and Carlson's Summit Manor (South) Hyde Park All three of these areas are characterized by older and smaller housing stock. During a windshield study in the Fall of 1994 to evaluate housing conditions, a significant number of homes were identified in fair to poor condition. The 1990 census showed that the median income in these areas were the lowest in the entire city. Plymouth Addition and Carlson's Summit Manor (South) Census tract: 512.05 Median income: $30,203 Hyde Park Census tract: 512.01 Median income: $30,026 4G 0 4. 5. 6. 7. 1996 HOME Application Page 2 Clientele This program will primarily benefit very-low income persons. Based on previous experience, it is anticipated that between 5 to 6 households will be helped under this program. Property Characteristics All of the properties improved will be owner - occupied, single - family homes. Site Control N/A Proiect Sponsorship The Fridley Housing and Redevelopment Authority (HRA) is the sponsor of this program and will provide the necessary matching funds. This program, if funded, will continue a commitment by the HRA to maintain and improve the City's housing stock. Financial Data Source of Funds 1996 HOME Funds Fridley Match Uses of Funds Housing Rehabilitation Grants Administration $75,000 $18,750 Total $93,750 Total $93,750 Notes: (') This represents 5% of the total budget for this program, the actual cost of administering this program is closer to 11% to 12% of the budget. The HRA will pay for these additional costs out of their own pocket. 4H 1996 HOME Application Page 3 8. Long Term Affordability Units are already occupied by low and moderate income persons and are therefore considered affordable. In addition, because of the repayment provisions there is an incentive to remain in the home for a long period. 9. Community Support See # 10. 10. 11. 12. 13. Impact on or from Other Programs This program is part of a continuing effort by the City and HRA to upgrade its neighborhoods through home improvement. This year, the HRA has budgeted $1,500,000 for housing programs, including rehabilitation programs, acquisition and clearance and home buyer assistance programs. Without HOME funds, the City would be unable to serve a portion of the population in need of housing rehabilitation, but lacking the financial resources to do so. Accessibility The City of Fridley is located in a handicapped accessible building. The City maintains a hearing impaired telephone line (# 572 -3534) and also has extended service hours on Tuesday evenings from 5:00 p.m. to 7:00 p.m. In addition, the City operates a 24 hour telephone service called the "Fridley Information Line' which provides recorded messages on all of the programs and services available through the City. Contact Person Grant Femelius, Housing Coordinator 6431 University Avenue NE Fridley, MN 55432 # 572 -3591 Signature X- Z�,l William W. 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Ip� 1111111E .�♦ �� I `� ♦ �A111 -1 1.11 ►1111 \ nuuul iii �� .nu ft n� nu .1.....nm1 aj I j 111sitIIUIn1111111 7�7 /I/uuiuwn. 1 ►1 �M1 1111IIIIIIIIIIIIt-C�� j.+ 1 11111111 1111111 •111! /w �n1: A 4. � 1 • 1 I .:j:;; Inutluner111 \ ��i1 11. tl •�.5� •Ila . r ff Be- 1Wi� / • � C ! 1 11p R,1 \� � �.. i •�i�� t4F � MEMORANDUM HOUSING REDEVELOPMENT AUTHORITY DATE: April 5, 1996 TO: William Burns, Executive Director of HRA�4 FROM: Barbara Dacy, Community Development Director SUBJECT: Consider Approval of Preliminary Construction Plans for Christenson Crossing Preliminary Construction Plans Included in the HRA's packet are 11" x 17" reductions of the proposed building elevations and the site development plans. Todd Stutz of Rottlund Homes, Inc. attended the March meeting and reviewed the building elevations and materials, despite lack of a quorum. John Meyer also completed his review of the general specifications of the interior of the units. A copy of Meyer's letter was given to Stutz, and he has responded to staff about each of the points (see attached summary). The development agreement requires HRA approval of the construction plans for the development. The proposed building elevations meet the intent of the design guidelines originally approved by the City Council and the HRA last Fall. Approval is recommended. Interior Products Staff also reviewed Rottlund's specifications and asked Rottlund to change three items. First, a stronger sink will be installed in the units. Second, the ends of the cabinetry will be solid wood as opposed to a photostat finish. Third, the exterior siding and warranty has been changed to provide more warranty protection. These changes will be incorporated into one of the exhibits of the development agreement. The development agreement will have been signed by the developer by Thursday's meeting. Final approval by the City Council is projected for April 22, 1996. Closing is to occur on April 30, 1996. Grading and construction will begin in May! Preliminary Construction Plans Christenson Crossing April 5, 1996 Page 2 RECOMMENDATION Staff recommends the HRA approve the preliminary construction plans for Christenson Crossing. BD /dw M -96 -165 5A ROTTLUND RESPONSE TO MEYER'S COMMENTS: GABLE SERIES 1. Warranty. Stutz will submit a copies of all warranties for review. Staff asked Stutz to obtain a different warranty for the exterior siding which Stutz has agreed to do. The original warranty was a pro -rated policy for 50 years; the new warranty provides the original owner with 100% protection for the first five years and then it shifts to a pro -rated policy thereafter. The product salesman advised staff that the company will probably honor the warranty beyond five years for the original owner. A new owner may have to pay a small charge depending when the repair is needed. Rottlund has changed to Heartland Super Polymer Vinyl Siding. 2. Excavation and Grading. Rottlund will be responsible for maintaining the landscape areas until the homeowner's association is formed. 3. Girders and Carpentry. The plans will be certified by a structural engineer to insure the strength and stiffness of the girders and trusses. 4. Heating. Rottlund will be hiring a Mechanical Engineer to appropriately size the air conditioning unit. 5. Electrical. The building inspector was consulted on the adequacy of 100 amps, and he determined that it should be adequate given the size and nature of the unit. There will be no opportunities for expansion of the units nor is there a basement. 6. Millwork. The Vision 2000 windows comes highly recommended from one the suppliers staff contacted.y The manufacturer is Weather Shield Windows and Doors. The carpeting allowance for the Gables is $12 /sq. yd. 7. Appliances. Whirlpool appliances will be installed in the Gable Homes. VILLAGE HOMES See mechanical and electrical comments above. O1LJJfJJLJ MAR -13 -96 WED 11 :03 MEJ INC FAX N0. 6123375325 P. 02/03 MEYER, BORGMAN AND JOHNSON, INC- john dV. jor,P.E. u Roland V. Johnson, P. E. CONSULTING STRUCTURAL ENGINEERS Richard E. Wiehle, P. E. Daniel E. Murphy, P. E. Michael J. Ramerth, P. E. March 13, 1996 Ms. Barb Dacy Community. Development Director City of Fridley Fridley City Hall 6431 University Ave. N.E. Fridley, MN 55432 Dear Barb: Here are my general comments on the specs. They are generally good for this type of construction but some items could stand being tightened up or better defined. 1 will talk with you soon. Sincerely, John E. Meyer Enc 1 i M: 3kd gabO313. jrni 5C 1 ? Snnth Sivth S1.Aat Suits 810 Minneapolis, MN 55402 -1564 612 - 338 -0713 Fax 612 - 337 -5325 11JJ (5J!5 MAR-43-96 WED 11:04 MBJ INC FAX N0. 6123375325 P.03/03 Notes on Specifications for Gable Series Townhomes Page 2: Warranty. What is the "Warranty Corporation"? Is this the name of an insurance company that gives protection against various defects, including structural defects? If so, it would be good to know the particulars of the policy. Product Changes. The phrase, "all product alternates will be of equivalent standards" is a reassuring phrase. Page 3: Excavating and Grading. In the last paragraph the "core and maintenance of sod and landscape will be the responsibility of the Homeowner's Association." What happens to these materials until the association is formed? Page 4: Girders. I suggest that "girders to be of the strength and stiffness characteristics as required by the building code." (These sizes are probably adequate for the standard framing but other possible conditions should also be covered). Carpentry. The same comments regarding 12" floor trusses as given under "Girders" is made. Page 5: Heating. The specifications call for a 1 1/2 ton air conditioning unit. Is this adequate to properly cool a unit. If it doesn't, is the owner responsible for an inadequate size because he agreed to specifications which stated the capacity of the unit? Page 6: Electrical. A 100 amp service seems low considering today's electrical usage in a home. Can this be checked with a local electrical contractor for his views? Page 7: Millwork. I am not familiar with the manufacturer of Weather Shield Vision 2000 windows. Knowledge of the manufacturer would tell much about window quality. Room Finish Schedule. There is no definition of carpet quality. The specification for the Village Series Homes gives an allowance of $15.00 /sq. yd. for carpet, pad and installation. Page 8: Appliances. It would be useful for the brands of the various appliances to be named. General: Would it be appropriate to request lien waivers from the various subcontractors? Village Series Homes I have no additional comments regarding these specifications except to note that (a) the air conditioning unit is 2 1/2 tons (which may very well reflect the greater cooling required for these homes than for the townhomes) , (b) a 100 amp service is all that is furnished for these homes also. g3b0313jcni C MEMORANDUM HOUSING AND REDEVELOPMENT AUTHORITY DATE: April 5, 1996 TO: William Bums, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Consider Approval of Contract for Completion of the Housing Action Plan as Required by the Livable Communities Act Since the Chairperson and Vice Chairperson discussion at the March 14, 1996 HRA meeting, I contacted Jim McFarland to determine if he was agreeable with initiating the consultant contract on the Housing Action Plan prior to final approval by the HRA. I advised Mr. McFarland of the Chairperson and Vice Chairperson concerns, and he ultimately agreed to initiate the contract. The memo and explanation for the necessity of the contract that was submitted in the March HRA agenda is attached once again. In summary, completion of the Housing Action Plan will enable the City to apply for grant and loan funds for redevelopment projects. The Frank's Used Car site is a good example of an eligible site under one of the Livable Communities Act programs. The City /HRA also has access to the Department of Trade and Economic Development's pollution clean -up program, which would assist the City in redeveloping the salvage yards or other polluted sites. There is a direct relationship between the outcome of the plan and the activities of the HRA. The plan must specifically address housing rehabilitation needs as well as types of housing for different segments of the market (senior, empty- nester, young professionals, etc.). The consultant has initiated work and a report will be prepared for the HRA's review at the June meeting. Recommendation Staff recommends that the HRA approve the attached contract for an amount not to exceed $15,508.11. BD /dw M -96 -166 DATE: March 7, 1996 MEMORANDUM HOUSING REDEVELOPMENT AUTHORITY TO: William Bums, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Consider Approval of Contract for Completion of the Housing Action Plan as Required by the Livable Communities Act Background The City of Fridley agreed to become a Livable Communities Act participant in December, 1995. Participating in the Livable Communities Act enables communities to access three types of funding sources for affordable housing, redevelopment, and development projects, and polluted site clean -up projects. A requirement of the Act, however, is that the City must compile an "Action Plan" proving how it intends to maintain its "affordable housing and life cycle housing" goals. Why is this Contract Beinq Proposed for Funding by the HRA? The plan will document how much affordable housing the City has and how it intends to provide ongoing programs for individuals who need it. This document could be used, for example, as supporting documentation for future redevelopment projects which may involve the removal of existing housing units. Or, depending on its findings, the plan may indicate that more affordable units are necessary. 2. The Frank's Used Car redevelopment request will require a Comprehensive Plan Amendment in order to increase the proposed density from low density residential to medium density residential. Lack of compliance with the Livable Communities Act Action Plan requirement would give the Metropolitan Council cause to delay the process for the Comprehensive Plan change approval. A delay in the process puts a 1996 construction date in danger. Further, the proposed redevelopment project is eligible to receive funding from one of the new funding sources. Housing Action Plan Contract March 7, 1996 Page 2 3. Completing the Plan will identify potential redevelopment sites for housing projects which can be matched with the needs of Fridley residents. Further, it will add justification to a project if it can be shown that the proposed housing types meet a local demand. 4. A substantial amount of the analysis will require GIS (Geographic Information System) work. GIS saves hundreds of hours of time completing tasks by hand and also builds data bases for other projects. What Will the Consultant Do? Generally, the plan content is required to (1) identify the impact of local official controls on housing development and preservation, and the use of fiscal devices to expand and preserve housing opportunities; (2) the plan should also address participation in available housing assistance, rehabilitation, and development programs. Communities are asked to prepare an action plan with a timeframe until the year 2010. In order to meet Met Council's requirements, the consultant will compile the following information: 1. Housing data including age, condition, value, ownership, and type. The outcome of this analysis will determine if the Met Council's numbers on affordability are accurate. 2. Housing data in comparison with population and income data. Specifically, Met Council wants the number of households to be assisted, housing units to be produced or rehabilitated, the income levels of the households to be assisted, and the efforts that will be targeted specifically toward elderly, families, homeowners, and renters. 3. Vacant, underutilized, or nonconforming parcels. In combination with the analysis completed in number one, the plan will identify potential housing redevelopment sites /areas. 4. The plan must identify "barriers or incentives" to accomplish the goals identified in the plan. Barriers or incentives may include local zoning controls, the ability of a community to administer programs, access to available funding, and relationship to available nonprofit organizations. Budget Impact The recently- adopted 1996 budget identified $25,000 for non - programmed studies. The recommended consultant for this project is proposing a cost well within this budgeted amount. 6B Housing Action Plan Contract March 7, 1996 Page 3 Proposed Contract A brief Request for Proposal was prepared based on the Metropolitan Council's requirements for the Plan and sent to seven consulting planners. Three were submitted. The attached memo from Michele McPherson, Planning Assistant, reviews the three proposed contracts. Ann Perry of Short- Elliot - Hendrickson (SEH) is recommended. Ms. Pent' recently joined SEH's staff and is a well known planner in the metropolitan area. She has 18 years of planning experience, a majority of which was completed in the City of Minnetonka. She has worked with the City in the past on the Water Supply System Comprehensive Plan chapter. SEH also has very good GIS capability. Although the SEH contract is somewhat more expensive than the lowest contract proposal ($15,500 vs $13,500), we are recommending Ms. Perry because of her planning experience. The lowest submitter has significant experience in GIS; however, Ms. Perry, combined with SEH's GIS capability, seems to be the best combination to meet the City's needs. RECOMMENDATION Staff recommends that the HRA approve the attached contract for an amount not to exceed $15,508.11. B D /dw M -96 -119 6C DATE: March 7, 1996 MEMORANDUM PLANNING DIVISION TO: Barbara Dacy, Community Development Director Scott Hickok, Planning Coordinator FROM: Michele McPherson, Planning Assistant SUBJECT: Review of Proposals Submitted for Preparation of a Housing Action Plan On Thursday, February 29, 1996, 1 sent seven Request for Proposals (outline attached) for the preparation of a_ Housing Action ,Plan in compliance with the Metropolitan Livable Communities Act. I received three responses to our request. They are from the following companies: 1. Jerry Happle Plan Site GIS Solutions 2. Ann Perry Short- Elliot - Hendrickson 3. Lynn Rabbus/Nancy Reeves Dahlgren, Shardlo, and Uban I analyzed the three responses based on the following criteria: A. Planning experience B. Level of understanding of a Request for Proposal C. Response to the Request for Proposal D. In -house or out - sourced GIS work E. Cost of proposal Housing Action Plan Proposals March 7, 1996 Page 2 Following is a short analysis of each of the proposals based on the above criteria. 1. Jerry Happle Plan Site GIS Solutions Mr. Happle submitted a proposal at the cost of $13,500. My review of his proposal indicates that he clearly understands our request for the development of a Housing Action Plan, and a number of the phases established by his proposal exceed the requested items in our original request. All of Mr. Happle's work would occur in -house using the City's data and equipment. This will allow staff to have access to Mr. Happle as well as presenting a training opportunity for GIS learning. A potential negative in regards to Mr. Happle's proposal is the limited experience (three years) of Mr. Happle in terms of project management and planning experience; however, he does have a background in urban and regional planning, and is also on the verge of completing his Master's degree. 2. Ann Perry Short-Elliot-Hendrickson Ms. Perry submitted a proposal in the amount of $15,508.11 which is a preliminary number pending further discussion with staff regarding the work tasks requested in the Request for Proposal. My analysis of her proposal indicates that she understands the Request for Proposal and the outlined tasks indicate that her proposal meets the intent of the RFP. As with Mr. Happle, Ms. Perry's GIS technician would work in -house utilizing the City's existing data bases and equipment. Again, this is an advantage which allows staff to use the GIS technician for training opportunities in the GIS software. Ms. Perry has 18 years planning experience and is familiar with comprehensive planning issues in urban areas. 3. Lynn Rabbus /Nancy Reeves Dahlgren. Shardlow, and Uban Ms. Rabbus submitted a proposal with an estimated cost of $25,000 - $28,300 - depending upon the City's GIS needs. This proposal indicates a fair understanding of the tasks requested in the RFP; however, it appears that additional discussions are required to fully firm up the scope of work and required work tasks. My analysis indicates that this proposal meets the intent of the RFP. Unlike the first two proposals, this proposal would have GIS work completed at their offices, thereby limiting staff access to the GIS technician and eliminating any training opportunity for 6E Housing Action Plan Proposals March 7, 1996 Page 3 City staff. In fact, the proposal clearly states that they would train City staff at an additional cost. It is unclear from the proposal as to the number of years of experience each staff person has in the area of GIS or planning; however, the subcontractor, Nancy Reeves, has 25 years experience in the areas of housing and planning. RECOMMENDATION Based on my analysis, I recommend Ann Perry of SEH. It is the best combination of planning and GIS experience. fTL�iTI` M -96 -113 6F MAP. -08 -19-96 11 :24 FROM .. SEED March 8, 1996 Ms. Michele McPherson Planning Assistant City of Fridley Fridley Municipal Center 6431 University Avenue NE Fridley, Minnesota 55432 Dear Michele: SEH —MPLS TO 5711287 P.02 5.QM BAKER ROAD, SU1TE590. MINNETONKA, MN 55345 612 93 r -9501 FAX 612 93 r -1188 ARCHITECTURE • ENGINEERING • ENVIRONMENTAL TRANSPORTATION RE: Fridley, Minnesota Housing Action Plan SEH is pleased to submit the following Scope of Services that updates the March 6 proposal to you for a Housing Action Platt for the City of Fridley. As described in the March 6 proposal, the Housing Action Plan will contain a variety of elements. You have requested that plan specifically include a list of components, which is depicted on the attached Addendum. The majority of these items were included in'the °March 6 proposal, but not specifically listed iri the Work Program. The items that were not included are the transit analysis and the colored graphics. The cost of the transit analysis ($547,56) and the colored graphics ($500) have been included in the revised Work Program and associated costs fisted below: W9.rk IM 1. Project Orientation $262.72 2. Data Manipulatioo/Computer $3,208.80 3• Housing/Socioeconomic Inventory $1,251.51 4. Affordable Housing Inventory $365.04 5. band Use Inventory $685.92 Housing Density by Type Land Availability Vacant /underdeveloped Land Analysis Tax Assessment Information 6. Future Housing Needs $1,095 -12 Population. Housing and Employment Forecasts Future Household Characteristics Anticipated Wage and Income Levels Transit Analysis 7. Identification of Programs Oriented Toward Taro ted Income Levels $365.04 SHORT rLUOTT 6G HENDRICKSON WC- ST PAUL, MN ST CLOUD. MA CHIPPEWA FALLS. WI MADISON. WI MAR- 08 -19% 11:24 FROM SEH -MPLS TO Michele McPherson City of Fridley Page 2 8. Verify and Revise, if Necessary, Housing Goals $365.04 9. Define Amotrntll'ype of Fixture Housing Needs $273.78 10. Identify Implementation Strategy $ 1 095.12 Barriemincentives to Housing Goals Recommend Anmdrnents to Local Controls Program Development I I . GIS System Development $ 160.44 Subtotal: $9,12855 Other I. Meetings with Staff $708.00 2. Meetings with HRA. Planning Commission and City Council $547.56 3. Final Report (15 Copies) 5200.00 4. Graphics 521800.00 Location Map Vacant/PotentW Redevelopment Sites Affordable Housing Target Sites S. Computer Time $1,000.00 6. Clerical $924.00 7. Mileage subtotal: 56.379.56 Total Estimated Cost: $15,508.11 5711287 P.03 SETS proposes to develop this plan in cooperation with the City of Fridley for a final "not -to -exceed" cost of $15,508.11. SEH proposes to invoice the City monthly for this project. Our invoices typically lag the progress by one month and invoices are payable in 30 days. If this proposal is acceptable to the City of Friday, pleas sign one copy and return it to this office. Again, thank you for the opportunity to work with the City of Fridley. We are looking forward to worldng with you on this project; S*erely, Ann R. Perry Senior Planner Attachment 6H flAR- t= je-159S 11:25 FROG SEH -MPLS TO 5711257 P. 04 Michele McPherson City of Fridley Page 3 Accepted this day of ,1996 City of Fridley By: Larry Commers Chairperson of the Fridley Housing and Redevelopment Authority William W. Bums Executive Director of the Fridley. Housing and Redevelopment Authority 61 MAR -08 -1996 11 :25 FROM SEH -MPLS TO 5711287 Addendum As requested by the City, the following information will be included in the final report: I . Percent of population under the age of 18 2. Percent of homeowners age 65 or older 3. Minorities as a percent of total population 4. Families with children as a percent of all households 5. Percent of households in rental housing 6. Percent of one- person households 7. Percent of homes valued at less than $50,000 8. Percent of homes valued at $150,000 or more 9. Average value of owner- occupied housing 10. Median household income 11. Median family income 12. Percent of households earning less than $25,000 13. Percent of households earning $75,000 or more 14. Percent of households age 25 to 54 earning less than $25,000 P.05 The above information will be obtained from the 1990 census data files or other sources that provide reliable and more recent data It is anticipated that this information will be depicted as graphs or figures in the report and accompanied by text. In addition, the City and the consultant will determine the appropriate manner to display additional information listed below: 1. Areas with high percentage of younger and older homeowners 2. Areas with high percentage of new and long -term residents 3. Areas with high percentage of low and high household incomes 4. Areas with high percentage of low and high home values 5. Areas with high percentage of low and high monthly rents 6. Homestead property valuations 7. Homestead residences below average condition 8. Multiple dwelling unit locations It is anticipated that most of the information will be depicted on maps, assuming this format proves most understandable to the reader. SEH will also provide information regarding existing and anticipated wage scales of the employment centers of Riday residents, to the extent possible. The consultant will need to rely upon the Fridley staff to provide guidance in identifying the significant employers within the area Lastly, an analysis of areas where improved transit opportunities will be provided to the City along with recommended strategies to be included in the implementation section of the report. The City has expressed a desire to include colored graphics within the text. SEH proposes to add a $500 budget for colored graphics that can be utilized dependent upon the number and copies of maps desired by the City. 6J DATE: February 22, 1996 MEMORANDUM PLANNING DIVISION TO: vBarbara Dacy, Community Development Director Scott Hickok, Planning Coordinator FROM: Michele McPherson, Planning Assistant SUBJECT: Scope of Work, Housing Action Plan I reviewed the Metropolitan Liveable Communities Act Action Plan Content Guide (draft dated March 3, 1996) to determine the potential scope of work for a housing consultant. It is anticipated that the HRA will approve an expenditure for a housing consultant at its March 14, 1996 meeting. We are required to determine the following: Inventory of Current Housing Stock: age, number of units by type, condition. We currently have this information in a variety of locations and file types. The Fire Department has a 90% accurate list of current rental owners and unit types. This is stored in dBase 5 and is listed by address. The condition study we completed in 1994 is stored in part in dBase on the Engineering GIS computer, the remainder is in LOTUS on disks. The age of individual dwellings can be obtained from the County tax information which is located on the AS400 in the HTE Land Management Module. Population Analysis: household composition, age, income levels, etc. The 1990 Census information is located on the Gateway in Community Development. The GIS tract and block maps are also accessible to the Gateway as well as the Engineering GIS computer. This information is now 6 years old. The consultant should attempt to acquire more current information from Anoka County, Metropolitan Council, or other sources. Inventory of Available Land: vacant, underutilized, or land improperly zoned. Information regarding vacant land and zoning information is located both on the Engineering GIS computer and from the County tax information on the AS400. Visual February 22, 1996 Housing Action Plan Page 2 inspections of the community will also need to occur. The plan should establish the following: Income Levels to be Assisted Identify numbers of households to be assisted by income level: very low, low, and moderate income levels. Programs to be considered include Section 8, homeless prevention, and emergency assistance, and mortgage assistance. Efforts Targetted to Specific Population Types Programs to assist elderly, families, homeowners, and renters should be clearly identified. Types of Housing Units to Be Produced The various types of units to be produced should be identified, including affordable rental housing, elderly housing, housing for families, etc. Programs and units to be maintained, rehabilitated, or redeveloped should also be identified. Miscellaneous Components The plan should also identify barriers or incentives to accomplish the goals identified in the plan. These include local controls, the ability of the community to administer programs, the relationship of the community with non - profits or other sources of funding, etc. In summary, I believe that we have all the components and ingredients to produce our housing action plan by the June 30, 1996 deadline. The consultant we hire should have a staff member who is familiar with computers, specifically Arcview and Arclnfo, as most of our information is currently stored within those two programs. I would also recommend that we speak with Rick Pribyl, Finance Director, and request MIS assistance from Char Eckman to retrieve information from the AS400 system when necessary. I am estimating, with time for errors, that approximately 40 -80 hours of computer time will be required to complete the thorough analysis required by the plan. MM/ M -96 -90 6L Why Did the City Participate in the Livable Communities Act? The Metropolitan Livable Communities Act was enacted in June 1995 by the legislature to address a number of housing and economic development issues which have been discussed in the legislature for the past two to three years. The Act creates three accounts in which communities may attempt to receive money for a specific purpose. In order to be eligible to receive these funds, communities must pass a resolution electing to participate in the program. The three funding sources are: Local Housing Incentives Account Program 2. Tax Base Revitalization Account Program 3. The Livable Communities Demonstration Account Participating in the Act also may translate into higher scores for Minnesota Housing Finance Agency funding applications and the Department of Trade and Economic Development Polluted Sites Clean -Up Program. The Fridley HRA has a current MHFA application pending as part of its funding for the 5% loan program recently approved by the HRA. The Polluted Sites Clean -Up Program may be a source of funds to address potential contamination issues for redevelopment of salvage yards in the future. Participation in the Act could be defined as "compliance" with the requirements of the Settlement Agreement executed this past Summer with the Sylvan Oaks Tenant Association (a Fair Housing ordinance still needs to be adopted). By participating in the program, the City has adopted six housing principles (see attached) and agrees to three affordable housing benchmark indicators, including affordability, life cycle housing, and density. According to the Metropolitan Council's calculations, the City currently meets the benchmarks. The purpose of the Housing Action Plan is to identify ways to maintain and /or exceed the goals. The City's existing Housing chapter of the Comprehensive Plan was written in 1982, and is badly outdated. Completing the Action Plan will pull together a number of recent studies and other resources which can be a basis to more easily update the Comprehensive Plan. The Act does not require the Metropolitan Council to approve the Action Plan, but permits the Metropolitan Council to comment on the Plan's content in relation to the negotiated goals which have been established. The goals are intended to be long- term, and beginning in 1998, the City's progress toward the goals will be monitored on an annual basis. 6M M DRAFT HOUSING GOALS AGREEMENT* METROPOLITAN LIVABLE COMMUNITIES ACT PRINCIPLES The city of Fridley supports: 1. A balanced housing supply, with housing available for people at all income levels. 2. The accommodation of all racial and ethnic groups in the purchase, sale, rental and location of housing within the community. 3. A variety of housing types for people in all stages of the life- cycle. 4. A community of well- maintained housing and neighborhoods, including ownership and rental housing. 5. Housing development that respects the natural environment of the community while striving to accommodate the need for a variety of housing types and costs. 6. The availability of a full range of services and facilities for its residents, and the improvement of access to and linkage between housing and employment. GOALS To carry out the above housing principles, the City of Fridley agrees to use benchmark indicators for communities of similar location and stage of development as affordable and life -cycle housing goals for the period 1996 to 2010, and to make its best efforts, given market conditions and resource availability, to maintain an index within the benchmark ranges for affordability, life -cycle and density. To achieve the above goals, the City of Fridley elects to participate in the Metropolitan Livable Communities Act Local Housing Incentives Program, and will prepare and submit a plan to the Metropolitan Council by June 30, 1996, indicating the actions it will take to carry out the above goals. The City will maintain its housing stock so as to not fall below the lowest % in the benchmark range. CERTIFICATION May _ November 27, 1995 6N Date CITY INDEX BENCHMARK GOAL ................ Ownership 90% 77-87% Rental 56% 45 -50% ::.:..:. Type (Non - single family 42% 33-41% detached) ^ Owner /renter Mix 68/32% (64 -75) / (25 -36)% " ins:: >:: >:: >:::<: ......<::::: . Single -Family Detached 2.8 /acre 2.3 -2.9 /acre Multifamily 14 /acre 13 -15 /acre To achieve the above goals, the City of Fridley elects to participate in the Metropolitan Livable Communities Act Local Housing Incentives Program, and will prepare and submit a plan to the Metropolitan Council by June 30, 1996, indicating the actions it will take to carry out the above goals. The City will maintain its housing stock so as to not fall below the lowest % in the benchmark range. CERTIFICATION May _ November 27, 1995 6N Date �i� METROPOLITAN LIVABLE COMMUNITIES ACT ACTION PLAN CONTENT GUIDE (Draft 1 -3 -96) Background The Metropolitan Livable Communities Act (LCA) says that each participating municipality shall identify to the Metropolitan Council the actions it plans to take to meet its established housing goals negotiated with the Council. During 1995 the Council revised its content guidelines for the preparation of the housing element of local comprehensive plans in anticipation that cities will revise their local plans in 1996 and 1997. In preparing their LCA action plan, communities using guidelines for housing implementation activities set forth below may, in large measure, be completing the implementation section of their comp plan housing element and be fulfilling their LCA action plan requirement with the same document. Plan Content and Timeframe The action plan required of communities participating in the LCA, like its housing element xo ��ntemart. could identify the impact of local official controls on houg development and r r , , - - ' - sin - ---- -2 __ -3 Tn development programs. In short, LCA action plans should: —� * Identify the programs, initiatives and actions communities plan to undertake to achieve their negotiated affordable and life -cycle housing goals; and • Identify, as specifically as possible, the time frame within which these efforts will be undertaken. Communities may want to prepare an action plan for a time frame that is shorter than the longer range objectives suggested in their local comprehensive plan or for a period shorter than the 2010 horizon addressed by heir LCA Qoa1s. Several communities have negotiated LCA ordable and life -cycle housing goals that will be applicable for a shorter, specified period of time, with the stated intent of reexamining these goals and their progress toward them in a few years. Therefore, action plans with time lines of three to five years, for example, identifying specific activities and programs for each year and a commitment to revise the action plan periodically may be more appropriate and practical for these types of communities. "Cluster" Plans In addition, there will be situations where expanding affordable and life -cycle housing opportunities within the borders of a community may be impractical or impossible. In some communities there may be physical limitations leaving li ttle or no land left for residential development. In others marketplace realities, such as prohibitive land costs, may effectively make the development of additional affordable housing impossible. There will be other situations where cities have historically functioned as a larger cluster of communities beyond their own borders -- ?: particularly smaller cities with similar development patterns and common places of commercial and social activity. These communities may find it more appropriate to propose to meet housing goals in a broader, collaborative effort. These and other situations may be particularly appropriate for the development of a joint action plan for a "cluster" of communities as permitted by the LCA Cities participating in the LCA may decide for themselves whether they want to collaborate with neighboring communities in preparing a joint plan to achieve the housing goals of the collaborating cities. Just as in individual city action plans, cluster plans should .set forth the housing assistance, rehabilitation and development programs that may be used by the cooperating communities, and the actions regarding local official controls. to be undertaken by each of the members of the cluster. Lnplementation Actions Implementation efforts to achieve affordable and life -cycle housing goals may differ significantly from city to city. A community's level of urbanization and development may indicate an approach to housing issues that is different from that of its neighbor. The implementation actions proposed by one community may not be applicable or appropriate for another community. For example, the housing activities of a fully developed, first ring suburb may differ greatly from the residential subdivision development in developing area communities. Such factors as the current housing situation in the city or cluster and future housing needs as suggested by the age and household composition of its population and its household and employment forecasts, the age and condition of the housing stock, and the amount of land available for residential development, should all be considered in developing the action plan –� The housing action plan should address the kinds of i / below and the general time frame m w c eir a or identify, as best as possible the numb r ouseh P r u or re tated throu the various prograi community. To the degree possible, the plan should i low income - 30 dementation tools and programs set forth vill be un a en a plan should be listed or hou—SM2 units to be and activities to be emp oye y e n e mcome lave c n t e nit olds Of households or percent of assist e to at of median. low income - 50 percent of _ YVWlYlV AL 01AW"Au JLUVIU U efforts that will be targeted specifically toward the elderly, families, homeowners and renters. Below are examples of programs and local efforts in which communities may participate to further their affordable and life -cycle housing objectives. These are the kinds of efforts that should be in a community's LCA housing action plan: Housing Assistance Programs An action plan to implement the community's LCA goals should indicate the housing assistance programs to be used by, and in the community, and the best estimate of how many households will be helped by such programs each year or over the period of years covered by the action plan. MAIM A number of programs provide renter assistance and below - market -rate home mortgage programs. Some involve little or no administration or oversight by the city, although most require a city's consent. Categories of programs and examples are: ► Rent assistance programs such as HUD's Section 8 certificate or voucher programs administered by Metro ERA, or city or county ERAs. ► Homeless prevention and emergency-assistance programs available through HUD and MHFA- Mortgage assistance and below- market -rate home mortgage loans through MHFA and HRAs through local lending institutions. Housing Development Programs The action plan may set forth specific new construction or housing rehabilitation efforts to expand the community's stock of affordable rental housing. A limited number of tools are available to support the construction or rehabilitation of low- and moderate - income housing. These programs include the following: ► New construction, or acquisition and rehabilitation programs to produce or preserve affordable rental housing. Examples include HUD's HOME funds and various MHFA programs. _ Low- income tax credit and mortgage/bridge loan programs. ► Low- income public housing funds for the construction or acquisition of public housing units available as a result of the 1995 Hollman settlement. ► First -time home buyer programs through 1Vif1FA and local HRAs through participating local lenders. Housing Maintenance, Rehabilitation and Redevelopment Programs A variety of programs are available to address maintenance, rehabilitation and redevelopment. The action plan may identify any or ali of a number of potential local efforts including, but not limited to, the following: ► Adoption and enforcement of a local housing maintenance code. Rental rehabilitation, mortgage assistance and federal income tax credit programs aimed at preserving and improving rental housing. Available through MHFA. ► Home ownership rehabilitation, home improvement and energy- efficiency local programs. Available through MHFA. ► Initiatives for housing rehabilitation programs, funded locally or through CDBG funds. Several local HRAs administer such programs. --!j Local Initiatives Though considerably more restricted than in the past, state and federal laws permit local governments to implement fiscal initiatives to generate capital to assist development or redevelopment of low -cost housing. The action plan should include the communities 63Q I short- and long -term expectations and intentions regarding the use of these fiscal tools including: ► Housing revenue bonds ► Tax - increment financing ► Federal Community Development Block Grants ► Local HRA tax levy ► Local government essential function bonds/regional credit enhancements Local Official Controls and Approvals One of the most important and visible implementation efforts a community can engage in to accomplish its LCA goals is to re- examine and revise its local official controls and approvals as they impact residential.development and redevelopment. Local regulations and requirements can significantly affect the cost of housing and the opportunity to increase life -cycle housing options. It may be appropriate for a community to examine its local controls for their potential to reduce housing costs and diversify its housing. These efforts can include: ► Land use and zoning regulations, including minimum and maximum densities, amounts of land planned or zoned for multifamily housing; environmental protection regulations; public dedication requirements. ► Cluster - design site planning, planned unit developments and zero -lot -line approaches, for their potential to-increase life -cycle options and affordability. ► Public improvements and engineering/design requirements, including street width and depth design, sidewalk requirements, storm sewer design, street lighting, tree replacement. ► Local approvals process, including time frame and complexity. ► "Accessory housing "ordinances to allow single- family homes to have apartment units in basements or converted space in a separate structure. Authority for Providing Housing Programs One obvious and necessary ingredient for successful implementation of housing objectives is the ability of the community to administer and manage the myriad assistance, development and maintenance activities available to it and its residents. The action plan should describe what authority the city has for operating housing programs and the activities of the organizations or entities that administer the programs and/or also describe arrangements the city may have with other public or nonprofit organizations that provide housing - related services to the city. hAuibrary\commundv\W010396.hsg 6R MEMORANDUM HOUSING REDEVELOPMENT AUTHORITY DATE: April 5, 1996 TO: William Bums, Executive Director of HRA fi FROM: Barbara Dacy, Community Development Director Grant Femelius, Housing Coordinator SUBJECT: Consider House Plans for 5720 Polk Street N.E. and 623 Lafayette Street N.E. Whitney Homes has submitted two house plan designs they intend to market to prospective buyers for the above lots. One of the designs (attached as Model A) is similar to the plan that has been previously used. Brad Dunham, Edina Realty, is marketing the sites on behalf of the builder and has indicated that this plan is extremely popular with first -time homebuyers. In response to our request to differentiate this plan from previous versions, Whitney Homes has agreed to do the following: Add brick facing (half wall) to the front garage. 2. Add grids to all windows on the front of the house. 3. Set back the third garage by at least one (1) foot from the front to minimize the impact of the garage. The second design (referenced as Model B) is new to the housing replacement program. This home is a split -level design with a living room and kitchen at grade level; three bedrooms and a bathroom on the upper level and an unfinished basement. This plan also has an optional third stall garage. At this time Whitney Homes has a buyer interested in the Lafayette Street lot, but has been unsuccessful in selling the Polk Street lot. The development agreement requires Whitney to complete both homes by the end of June, 1996. However, construction on the Lafayette Street lot may be delayed until utilities can be relocated and new sewer and water service can be installed. Whitney Homes Memo April 5, 1996 Page 2 Recommendation Staff recommends that the HRA approve the following: 1. Model A as presented, with the modifications ( #1-3) listed above. 2. Model B as presented, with the stipulation that the third garage stall be set- back by at least one (1) foot from the front to minimize the impact of the garage. GF/ M- 96-172 7A Z ' _" !' S'ad•"�, '>< ky y• ; v', }ft n,° I :=�.. iii t f itf s t r.1,1 ,I. It ..jE rti', •, ' '•f \ r`0^c" It.t,;!ll�t l;( I tl,l� N(�utl tll ..tt, I t!If , .! ( .�•!""�-- :___ —_ {I till; tt �;ll ►i``ft, �l i � I a I1[' !j,rfI ,lilt : ,`; i ; -� ! ' . ► ! .s. 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I r. _JJ _ SF 70— Z'. -m � O� r f, I I 1 L S l - I- I I1 i1JJ I I � 7 �tC i -I O r in 0 Li c vc I : , _ =�ZZ 111 . - r Z w v O nJ _ ` _ II U +O C/ 7F Cp C .. Q 0 G� = J cn | i | . ! . ------' / . ----� | | � | �---- |--- /| / ' � -_/'-- '| ' � ! /---_ i--_/ ' / / � « - 7 o � -� `� m -t - v) �� - o -. �� ' ^ � �� ) ` � � -- /� �� 1 71 C W 'S ?bhr I t H h co I c r I If v, �n J c j .n a ; n � f a _ 1 MEMORANDUM HOUSING REDEVELOPMENT DATE: April 5, 1996 AUTHORITY TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator' SUBJECT: Consider Consulting Agreement with the Center for Energy and Environment (CEE) This item was scheduled for consideration at the March HRA meeting. A copy of the original memo is attached. Also attached are several documents which were included in the March agenda packet and have since been revised. 1. Program Resolution This authorizes a Comprehensive Housing Rehabilitation Program for the City of Fridley and also describes the programs that will be offered. In addition, this resolution also authorizes execution of a consulting agreement with CEE to administer the program. 2. Consulting Agreement This contract authorizes CEE to administer the program on behalf of the HRA. The agreement has been revised slightly since the March meeting, namely: * Sec. 2.2 was modified to allow CEE the flexibility to invoice the HRA twice a month for loans originated and services provided. The HRA is required to pay CEE within 7 days of the invoice. The original version allowed the same frequency, but specified that the invoices had to be received on the first and fifteenth of each month and payment to be made within 15 days. * Several grammatical errors were also corrected. CEE Memo April 5, 1996 Page 2 There are a couple of other issues which should also be mentioned. In February, CEE and the HRA submitted applications to the Minnesota Housing Finance Agency to receive funds under the Community Fix -Up Fund and Community Rehabilitation Program. The Community Fix -Up Fund is intended to help middle- income households (up to $58,650) who can't qualify for regular MHFA home improvement loans. The HRA would have provided an interest subsidy to help make the loans even more attractive (reducing the rate from 8% to 5 %). MHFA notified us that our application could not be approved, unless we designated specific "communities" where the funds could be used. We plan to send MHFA a letter to clarify several issues and will report the outcome of our discussions with MHFA at the May meeting. The Community Rehabilitation Fund is a grant program which provides funds to cities for various affordable housing programs. Our proposal was to use the MHFA money in combination with HRA dollars to make deferred loans for rental property improvements. Both the HRA and MHFA dollars would have been recouped when the properties were sold. MHFA rejected our proposal; a copy of their letter is attached. The net result of MHFA's decision means that the HRA will leverage less outside dollars and will have to use more of its own funds. For this year the HRA budgeted $1,150,000 for housing rehabilitation. We anticipated that this amount would leverage and equal or higher amount of MHFA funds. At this point, it appears we will leverage less MHFA money. Summary Because of timing concerns we did begin advertising the new 5% loan program and are pleased to announce that it has been well received. So far, more than 100 application packages have been mailed out and several loans are actually ready to close. We also expect additional interest from the upcoming Home Remodeling and Garden Fair and from referrals by the Remodeling Counselor. Recommendation Staff recommends that the HRA take the following action: Approve the attached resolution authorizing the program and consulting agreement with CEE. 2. Approve two loans already in process (see Monthly Housing Report) and scheduled to close on April 9th. Both of these loans are consistent with • CEE Memo April 5, 1996 Page 3 the program guidelines and will be funded under the HRA Revolving Loan Program. GF/ M- 96-174 Summary of CEE Consulting Agreement 1. The agreement runs from March 1, 1996 through December 31, 1996. 2. CEE will assist the HRA with all marketing efforts. This will be provided on a time and materials basis not to exceed $10,000. Typical expenses will include the preparation of brochures, postage and newspaper ads, etc. 3. CEE will conduct building analyses for multi - family property owners. For each building analysis CEE will be paid $130.00. The agreement stipulates that CEE may perform up to 25 building inspections. The HRA Remodeling Counselor will provide similar services to homeowners. 4. CEE will originate both single family and multiple family loans. Essentially, there is a two -tier fee structure: a) For discounted loans sold to MHFA in which the HRA writes down the interest rate, CEE will be paid $125.00 per loan. This fee will cover the costs involved in processing the loan. b) For HRA loans, such as the Last Resort Program and Revolving Loan Program which are funded solely by the HRA, CEE will be paid $225.00 per loan. 5. CEE will verify that improvements are made according to program guidelines. In situations where the HRA is providing funding over $1,500 (either through interest subsidies or direct loans) CEE will conduct inspections upon completion of the work. Each post - installation inspection will cost $60.00. • A In FOTAO Execution CONSULTING AGREEMENT This CONSULTING AGREEMENT ( "Agreement ") is made as of the ist day of March 1996, by and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, with offices at 6431 University Avenue Northeast, Fridley, Minnesota 55432 ( "Authority "), and CENTER FOR ENERGY AND ENVIRONMENT (a Minnesota nonprofit corporation), with offices at 100 Sixth Street North, Suite 412A, Minneapolis, Minnesota 55403 ( "CEE"). RECITALS A. The Authority has a need for certain professional services and desires to retain CEE to provide said services, all subject to the terms and conditions contained in this Agreement. B. CEE is qualified to provide the desired professional services, all subject to the terms and conditions in this Agreement. NOW, THEREFORE, in consideration of the foregoing and the mutual_ promises contained in this Agreement, the parties agree as follows: 1. Services /Scope of Work 1.1 CEE shall in conjunction with the Authority develop and deliver a Comprehensive Housing Rehabilitation Program for the City of Fridley (hereinafter the "Program ") and more fully described on Schedule A attached hereto. All activities delivered under the Program shall be coordinated with the Authority's designated program manager. 1.2 CEE shall assist the Authority staff in marketing the Program on a time and materials basis. CEE shall insure that the Authority's sponsorship of the program is a prominent part of any marketing effort. 1.3 CEE shall complete up to 25 Comprehensive Building Analysis as described below upon request for any participant owning rental property. The Comprehensive Building Analysis shall identify and prioritize rehabilitation opportunities eligible for financing. If requested in writing by the Authority, CEE shall also complete a Comprehensive Building Analysis on a single family dwelling. 1.4 CEE shall originate, close and advance the principal • , • for all Program loans. However, before CEE disburses funds for a loan described in 1.5(g) or (h), it must have the prior written approval of the Authority. 1.5 CEE shall develop a personalized financial package for each eligible borrower that coordinates financing from the various programs described in Schedule A which includes the following: (a) MHFA The Great Minnesota Fix Up Fund (b) MHFA Community Fix Up Fund (c) MHFA Home Energy Loan Program (d) CEE Rental Loan Fund (e) MHFA Rental Rehabilitation Program (f) Fridley Revolving Loan Program (g) Fridley Single Family Last Resort Deferred Loan Program (h) Fridley Multiple Family Last Resort Deferred Loan Program The funding source in (f), (g), and (h) above is exclusively from the Authority and these three programs will be referred to as the Authority Funded Program. The MHFA programs in (a), (b) and (c) above are being supplemented by the Authority writing down the interest rate and are referred to as the Discount Loan Program. 1.6 CEE shall complete an Installation Verification as described below to verify that all improvements are complete and were used for eligible purposes if (i) financed by the Authority Funded Program or (ii) if the interest rate write -down is in excess of $1,500. The Installation Verification will be performed by a CEE housing technician and shall not substitute for any required code or permit inspection performed by the Authority. 2. Compensation 2.1 The Authority shall pay CEE for services provided under this agreement according to-the following schedule: 2 • Comprehensive Building Analysis $130.00 The Authority shall pay CEE a fee for each Comprehensive Building Analysis completed. CEE shall provide a copy of the analysis report as documentation of completion. Installation Verification $60.00 The Authority shall pay CEE a fee for each Installation Verification completed. The Installation Verification shall be performed by a CEE housing technician as provided in 1.6 above. CEE shall provide a copy of the Installation Verification report as documentation of the inspection. Loan Origination $225.00 The Authority shall pay CEE an Origination Fee for each loan closed using Authority Funded Program. The Origination Fee shall compensate CEE for assisting borrowers with loan applications, preparation of loan documents, loan closing and other direct costs of processing loans. Mortgage filing costs shall be paid by the borrower. CEE shall provide a copy of all closing documents including the loan note and mortgage as documentation of the loan closing. Administration Fee for Discount Loan Program $125.00 The Authority shall pay an Administrative Fee to CEE for each MHFA Fix -up Fund Loan, Home Energy Loan Program Loan or Community Fix -up Fund Loan that is originated and closed by CEE and is sold to MHFA at a discount as part of the Discount Loan Program. CEE shall provide a copy of the MHFA origination certificate as the documentation of the sale of the loan to MHFA. The Authority shall compensate CEE only for services completed. Compensation under this agreement shall not exceed seventy -five thousand dollars ($75,000.00) for Loan Origination Fees, Administrative Fees, Comprehensive Building Analysis Fees, Installation Verification Fees, Marketing and Program Development Fees. CEE will provide the marketing and program development materials for the following fees: CEE Program Manager $50.00 /hour Workshop and Marketing Coordinator $45.00 /hour Database Management $55.00 /hour Graphics /Clerical $35.00 /hour 3 • Hourly rates are inclusive of all overhead expenses and will be charged only for hours directly related to program development and marketing. CEE will be reimbursed by the Authority for any non - labor, out -of- pocket expenses, relating to these services on a dollar - for- dollar basis with no mark -up. Marketing and Program Development costs are not to exceed $10,000 except upon the express written authorization of the Authority. 2.2 CEE shall invoice the Authority not more than two times each month for (i) the principal of loans in the Fridley Funded Program, (ii) the interest rate write down for loans in the Discount Loan Program, (iii) Comprehensive Building Analyses, (iv) Verification of Installations, (v) Loan Origination Fees, (vi) Administrative Fees, and (vii) Marketing and Program Development services. The Authority shall pay CEE within 7 days of receipt of the invoice. 3. The Authority's Obligations 3.1 If requested by CEE, the Authority shall make reasonable efforts to obtain information and or permission for access from the Authority's clients which may be necessary for CEE to provide the services under this Agreement. 3.2 The Authority shall assist CEE in obtaining names, addresses, phone numbers and building characteristics of potential Authority Funded Program participants and eligible Authority Funded Program structures. Whenever possible, the Authority shall provide this information to CEE on an IBM compatible computer diskette. 3.3 The Authority shall assist in marketing the Program by authorizing the use of City of Fridley or other city agency logos and letterheads to CEE for use on marketing literature. All Program marketing materials used by CEE to promote this Program shall be approved in advance by the Authority. 3.4 The Authority shall provide Authority Funded Program sufficient to finance eligible loans. The Authority shall determine the amount of funds allocated to the Program. 3.5 The Authority shall establish eligibility for the Authority Funded Program and shall provide these 4 LOOME 4. 5. criteria in writing to CEE prior to commencement of any marketing efforts. 3.6 The Authority shall provide funds sufficient to finance the Discount Loan Program. 3.7 The Authority shall make reasonable efforts to respond promptly to requests from CEE for information and approvals regarding the services to be provided under this Agreement. CEE's Obligations 4.1 CEE shall use its best efforts to provide services under this Agreement in a professional manner consistent with the care and skill used by reputable members of CEE's profession. 4.2 CEE, and all of its employees or agents shall comply with all statutes, ordinances, rules, regulations and other laws applicable laws applicable to the provision of services under this Agreement. 4.3 CEE shall secure all permits and licenses required for performance of the services under this Agreement. 4.4 CEE shall not engage in discriminatory employment practices against any employee or applicant for employment and shall in all respects comply with all federal, state and local laws, regulations and orders, including without limitation, Chapter 363 of the Minnesota Statutes, as amended from time to time. Failure to comply with the provisions hereof shall be deemed a material default under this Agreement. Term and Termination 5.1 Unless earlier terminated as provided in the following paragraphs, this Agreement shall become effective on March 1, 1996, and continue through December 31, 1996. 5.2 This Agreement may be terminated by either party, for any reason or no reason, immediately upon written notice to the other party. In the event this Agreement is terminated by CEE prior to the expiration of the term set forth in paragraph 5.1, the Authority shall compensate CEE for all services delivered up to the date of termination and CEE shall provide the Authority with such information as the Authority may request regarding the status of the Authority Funded Program. 5.3 Any termination of this Agreement shall not release 5 i m VA either party from their respective obligations under sections 7 and 8 of this Agreement. Insurance 6.1 During the term of this Agreement, CEE shall obtain and maintain the following insurance coverage: (a) Worker's Compensation Insurance at the statutory . requirement for the State of Minnesota (b) Commercial General Liability Insurance with a $1,000,000 limit each occurrence and a general aggregate limit of $2,000,000 (c) Business Auto Insurance with a combine single limit of $1,000,000 each accident 6.2 During the term of this Agreement, CEE shall provide the Authority with a certificate or certificates of insurance relating to the insurance required pursuant to paragraph 6.1. Liability and Indemnification 7.1 CEE represents that the services to be provided under this Agreement are reasonable in scope and that CEE has the experience and ability to provide the services. 7.2 CEE acknowledges that the Authority cannot control the conditions at any site where the services may be provided, and accordingly, the Authority is not liable for any claim, damage, loss, injury or expense of any type which CEE may suffer as a result of providing the services under this Agreement. 7.3 CEE warrants that any services provided hereunder shall be done in a professional and workmanlike manner. 7.4 CEE shall indemnify, defend and hold harmless the Authority and the City and their officers, directors, employees and agents from and against any and all claims, damages, losses, injuries and expenses (including attorney's fees and damages for death, personal injury and property damage) which the Authority or the City may incur as a result of any act or omission by CEE in providing services under this Agreement. 7.5 The Authority shall indemnify, defend and hold harmless CEE and its officers, directors, employees and agents from and against any and all claims, damages , losses, 0 R• ,1M Q injuries and expenses (including attorney's fee and damages for death, personal injury and property damage) which CEE may incur as a result of any act or omission by the Authority in discharging its duties under this Agreement. Confidentiality Unless otherwise agreed by the Authority in writing, CEE shall maintain in confidence and not disclose to any third party any information obtained regarding the Authority and /or any of the Authority's clients for which CEE is providing services; provided, however, that this obligation to maintain confidentiality shall not apply to: * Information in the public disclosure; * Information which becomes after disclosure through * Information which CEE can prior to the date of this Relationship of Parties domain at the time of part of the public domain no fault of CEE; or demonstrate was known by it Agreement. CEE will provide services as an independent contractor under this Agreement. Neither CEE, nor any of its employees or agents, shall be considered employees of the Authority for any purpose, and neither shall CEE be eligible for any compensation or benefits which the Authority may provide to its employees from time to time. CEE shall be coley responsible for employment and other taxes applicable to providing services hereunder, and the Authority will not withhold any taxes applicable to providing services hereunder, and the Authority will not withhold any taxes or contributions from the compensation payable to CEE under this Agreement. If any governmental authority (federal, state or other) claims that the Authority owes taxes or contributions which allegedly should have been withheld or made, then, to the extent permitted by law, CEE shall pay the Authority the amounts claimed to be due, plus reasonable attorney's fees and any other costs which the Authority may incur in defending such claim, whether or not a lawsuit is commenced. All notices, requests, demands required to be given in writin, be given to the other party in in this section. If delivered deemed to have been duly given delivered by mail, such notice U.S. mail, postage prepaid, to beginning of this Agreement or 7 and other communications j under this Agreement shall person or by mail as provided personally, notice shall be on the date of delivery. If shall be sent via first class the address set forth at the such other address as a party M may otherwise request written notice shall be deemed duly given three (3) business days after mailing. 11. Assignment This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns; provided however, that neither party shall assign or transfer in any manner, this Agreement or any portion hereof without the prior written consent of the other party, and any attempt to assign or transfer without prior written consent shall be void and of no effect. 12. Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 13. Miscellaneous 13.1 Headings and captions used in this Agreement are for convenience only and shall not affect the meaning of this Agreement. 13.2 This Agreement contains the entire agreement of the parties and supersedes all prior agreements, discussions and representations, written or oral, concerning the subject matter hereof. 13.3 No waiver by the Authority of any term or condition of this Agreement or any document referred to herein shall, whether by conduct or otherwise, be construed as a waiver or release of any other term or condition in this Agreement. 13.4 This Agreement may only be amended in a written agreement signed by both parties. 13.5 Except as expressly set forth in Section 7, the rights and benefits under this Agreement shall inure solely to the benefit of the Authority and CEE, and this Agreement shall not be construed to give any rights, benefits or causes of action to any third party. 13.6 The invalidity or partial invalidity of any provision of this Agreement shall not invalidate the remaining provision, and the remainder shall be construed as of the invalidated portion shall have never been a part of this Agreement. 13.7 CEE shall comply with the provisions of Minnesota Statutes Chapter 13 (Government Data Practices) that 9 are applicable to the Authority and shall not disseminate any information concerning loan requests or the borrowers without the prior written approval of the Authority. 13.8 This Agreement may be signed in any number of counterparts, each of which shall be deemed an original and one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY Date ME Lawrence R. Commers Its: Chair By: Date William W. Burns Its: Executive Director CENTER FOR ENERGY AND ENVIRONMENT Date By. Sheldon Strom Its: Executive Director Federal Tax Identification Number: 41- 1647799 0 no HRA RESOLUTION NO. — 1996 A RESOLUTION ESTABLISHING A COMPMMENSIVE HOUSING REHABILITATION PROGRAM FOR THE CITY OF FRIDLEY; ESTABLISHING THE AREA OF OPERATION; PROVIDING FOR THE DELEGATION OF CERTAIN POWERS AND DUTIES; AUTHORIZING THE EXECUTION OF A CONSULTING AGREEMENT BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY AND THE CXNTER FOR ENERGY AND ENVIRONMENT. BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority "), as follows; Section 1. Recitals. 1.01. The Authority has previously established a Comprehensive Housing Rehabilitation Program for the City of Fridley's Hyde Park Neighborhood (the "Hyde park Program ") for the residents of the City of Fridley's Hyde Park neighborhood. 1.02. It has been proposed that the Authority now establish a Comprehensive Housing Rehabilitation Program for the entire City of Fridley (the "Program ") for the residents of all of the City of Fridley's neighborhoods. 1.0:3. The Authority has entered into the necessary agreements to implement the Hyde Park Program by executing a consulting agreement with the Center for Energy and Environment (the "CEE"). 1.04. It has been proposed that the Authority now enter into the necessary agreements to implement the City wide Program by executing the City wide consulting agreement with CEE (the "Agreement "). Section 2. Fin n s 2.01. The Authority hereby finds that its area of operation in which to implement the Program is the area within the territorial boundaries of the City as provided for in Minnesota Statutes, Section 469.002, Subd. 8 and that the Program will be available to the residents of all of the City's neighborhoods. 2.02. The Authority hereby finds that the adoption of the Program promotes the purposes of the Authority as those purposes are defined in Minnesota Statutes, • Section. Page 2 - Resolution No. 469.001, et sea. (the "Act ") . 2.03. The Authority hereby finds that the Program will assist in the alleviation of shortages of decent, safe and sanitary residential housing available within the City at prices affordable to persons and families of low or moderate income as described therein. 2.04. The Authority hereby finds that preservation of the quality of life in the City is dependent upon the maintenance, provision, and preservation of an adequate housing stock; that accomplishing this is a public purpose in that there are many residences in the City which require rehabilitation; that a need exists to provide in a timely fashion affordable housing to persons of low and moderate income as described in the Act and herein residing and expected to reside in the City; that many owners, would -be purchasers or providers of residences are unable to obtain mortgage credit for rehabilitation of residences under current market conditions; and that in establishing its Program the Authority is acting in all respects to benefit the citizens of the City and to serve a public purpose in improving and otherwise promoting their health, welfare and prosperity. Section 3. Authorization of Program. 3.01. The Authority hereby approves and adopts the Program as described in the Description and Guidelines on Schedule A attached to this Resolution. Section 4. Delegation of Power and Duties. 4.01. In accordance with the Act, specifically Minnesota Statutes, Section 429.012, Subd. 1(3), and in accordance with the Description and Guidelines, the officers, agents and employees of the Authority are hereby authorized to take such actions as may be necessary to implement the Agreement and operate the Program. 4.02. The Executive Director or Housing Coordinator are hereby authorized -to execute all documents relating to the approval and closing of any loans provided for in the Program. 4.03. The Executive Director or the Chairman are hereby authorized to approve payments for Program loans and any costs or fees incurred as a result of implementing the Agreement. s Page ; - Resolution No. Section 5. Authorization for Execution of the Agreement. 5.01. The Authority hereby approves the Agreement substantially in the form presented to the Authority and authorizes its Chairman and Executive Director to execute the Agreement on behalf of the Authority with such additions and modifications as those officers may deem desirable or necessary as evidenced by the execution thereof. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF PRIDLEY THIS DAY OF 1996. LAWRENCE R. COMMERS - CHAIRPERSON ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR 80 SCHEDULE A DESCRIPTION AND GUIDELINES COMPREHENSIVE HOUSING REHABILITATION PROGRAM FOR THE CITY OF FRIDLEY L SINGLE FAMILY LOAN PROGRAMS A. INTEREST RATE WRITE DOWN PROGRAM 1. Loan Description The purpose of this program is to reduce the cost of borrowing money to improve owner - occupied, residential homes. This program will only be used in conjunction with the following Minnesota Housing Finance Agency (the "MHFA ") loan programs: * The Great Minnesota Fix-Up Fund * The Community Fix-Up Fund * The Home Energy Loan Fund A summary of these MHFA programs is provided below. Depending on the borrower's financial status the Authority will write -down the interest rate to five (5) percent. Some MHFA loans will be originated at less than five (5) percent, in which case the Authority will not provide any interest subsidy. MHFA Program Summary a. The Great Minnesota Fix -Up Fund Provides fixed -rate, home improvement loans up to $15,000 at interest rates from two (2) percent to eight (8) percent, depending on the borrower's income. Maximum term is 15 years. The borrower must meet the following guidelines: * Household income less than $41,000. * Have good credit and the ability to meet normal lender underwriting standards for credit history, debt- to-income ratio, equity in home, etc. * Own and occupy the property to be improved; property cannot have more than 4 units. * Meet other criteria as required by the MHFA. The MHFA has established an interest rate schedule for borrowers which is described on the next page. • 8 Lei id SCHEDULE A Page 2 a. The Great Minnesota Fix -Up Fund (cont.) Adjusted Gross Interest Income Rate $0- $10,000 2% $10,001- $15,000 4% $15,001421,000 6% $21,001441,000 8% Only Great Minnesota Fix-Up Fund loans originated at the six (6) and eight (8) percent levels will be subsidized (i.e. written down to five (5) percent) by the Authority. b. The Community Fix -Up Fund Provides fixed -rate, home improvement loans up to $25,000 at an interest rate of eight (8) percent. Maximum term is 20 years. The borrower must meet the following guidelines: * Household income less than $58,650. * Have good credit and the ability to meet normal lender underwriting standards for credit history, debt -to- income ratio, equity in home, etc. * Own and occupy the property to be improved; property cannot have more than 4 units. * Meet other criteria as required by the MHFA. All Community Fix-Up Fund loans will be subsidized (i.e. written down to five (5) percent) by the Authority. C. The Home Energy Loan Fund Provides fixed -rate, home energy loans up to $5,000 at an interest rate of eight (8) percent. Maximum term is 5 years. The borrower must meet the following guidelines: * No income limit, however must have sufficient income to repay loan * Have good credit and the ability to meet normal lender underwriting standards for credit history, debt - to-income ratio, equity in home, etc. t� SCHEDULE A Page 3 Own and occupy the property to be improved; property cannot have more than 2 units. Meet other criteria as required by the MHFA. All Home Energy Fund loans will be subsidized (i.e. written down to five (5) percent) by the Authority. 2. Funding Source The Interest Rate Write Down Program will be funded by the Authority. The MHFA loans described in Section I(A)(1)(a -c) will be originated by .. the Center for Energy and Environment (the "CEE ") and sold to the MHFA. 3. Program Administrator The Center for Energy and Environment will market, administer and close all loans under this program. 4. Qualifications Income Limits: $58,650. This means projected annual household income as defined by the MHFA Home Improve- ment Loan Program Procedural Guide. Underwriting: Borrowers must meet MHFA underwriting guidelines for the programs described in Section I(A)(1)(a -c). Equity: Same as above. Property Type: Owner - occupied, 1 to 4 unit residential properties located in Fridley. 5. Program Specifics Borrowers may not receive more than $6,000 in Interest Rate Write Down Program funds per property improved. Any Interest Rate Write Down greater than $1,500 requires a post - installation inspection to verify that improvements have been made. 6. General Requirements This program is available to any homeowner in the City of Fridley which meets the guidelines of the programs described in Section • SCHEDULE A Page 4 7. Improvements Borrowers shall use funds under this program to make permanent repairs and improvements to their properties. Improvements shall be limited to those defined in the most current version of the MHFA Home Improvement Loan Program Procedural Guide. B. REVOLVING LOAN PROGRAM 1. Loan Description This program is intended to address the home improvement financing needs of borrowers who cannot qualify for an MHFA loan as described in Section I(A)(1)(a -c), but who can afford to make a monthly payment. This program fills a programming gap not addressed by other Authority, public or private institutions. 2. Funding Source The Revolving Loan Program will be funded solely by the Authority. 3. Pro-_ram Administrator The Center for Energy and Environment will market, administer and close all loans under this program. 4. Qualifications Income Limits: $58,650. This means projected annual household income as defined by the MHFA Home Improve- ment Loan Program Procedural Guide. Underwriting: Borrowers who don't meet normal lender underwriting criteria and fall into the following categories: a. Debt- to-Income Ratios not to exceed 50%. b. Loan- to-Value Ratios not to exceed 115%. C. May have marginal credit, but have the ability to make a monthly payment. CT • SCHEDULE A Page 5 Property Type: Owner- occupied, 1 to 4 unit residential properties located in Fridley. 5. Program Specifjcs The Revolving Loan will carry an annual interest rate of five (5) percent and must be repaid in monthly installments. The maximum Revolving Loan shall not exceed $25,000. The maximum term shall not exceed 20 years. All Revolving Loans will be secured with a separate mortgage. 6. General Requirements This program is available to any homeowner in the City of Fridley who meets the income, credit, and other program requirements in Section I (B)(1 -7) or as otherwise approved by the Authority. 7. Improvements Borrowers shall use funds under this program to make permanent repairs and improvements to their properties. Improvements shall be limited to those defined in the most current version of the MHFA Home Improvement Loan Program Procedural Guide. C. LAST RESORT LOAN PROGRAM 1. Loan Description This program is designed for those homeowners who cannot qualify for any other Authority loan or grant programs. Funding will be provided in the form of a deferred payment loan up to $10,000. Interest on a Last Resort Loan will be calculated as follows: * For the first ten years, 2% (simple interest) charged on the principal balance. * After ten years, no interest shall be charged. The Last Resort Loan is due and payable when the home is sold or after twenty (20) years from the date of the loan note, whichever comes first. The Last Resort Loan may be prepaid at any time. The Authority, may at its discretion, extend the maturity date of a Last Resort Loan. A" • SCHEDULE A Page 6 2. Funding Source The Last Resort Loan Program will be funded solely by the Authority. 3. Program Administrator The Center for Energy and Environment will market, administer and close all loans under this program. 4. Qualifications Income Limits: $58,650 Underwriting: This is a last resort program and as such applicants shall be selected for this program only if they are unable to qualify for financing through other Authority programs. The Authority and the Program Administrator shall work in co- operation to identify all possible resources before an applicant can be considered for this program- Equity: The Last Resort Loan shall be secured with a separate mortgage. Property Type: Owner - occupied, 1 to 4 unit residential properties located in the City of Fridley. 5. Program Specifics The Last Resort Loan is designed specifically for homeowners in the City of Fridley who cant qualify for a loan or a grant. Acceptable criteria include, but are not limited to: a. Borrowers who have existing financial obligations and/or insufficient income to qualify for a loan. b. Debt - to-income ratios in excess of 50 %. C. Loan- to-value ratios in excess of 115%, but not greater than 125%. d. Borrowers who have had credit problems, such as slow payment. • SCHEDULE A Page 7 e. Borrowers who can't qualify for any CDBG or HOME program funding because their incomes exceed the program guidelines. This program is not available to borrowers with Pending bankruptcies or foreclosures, unpaid judgements or liens, or non - payment of real estate taxes /assessments. 6. General Requirements This program is available to any homeowner in the City of Fridley with incomes up to $58,650 per year who meet the criteria in Section I (C)( 1 -7). 7. Improvements Borrowers shall use funds under this program to make permanent repairs and improvements to their properties. Improvements shall be limited to those defined in the most current version of the MHFA Home Improvement Loan Program Procedural Guide. All properties shall be inspected prior to the approval of any financing. The Authority will only disburse funds to the contractor /s directly after an inspection has been conducted and the homeowner signs a completion certificate. II. MULTIPLE FAMILY LOAN PROGRAMS A. RENTAL REHABILITATION LOAN PROGRAM Loan Description The Rental Rehabilitation Loan Program is funded by the Minnesota Housing Finance Agency and is intended to help rental property owners complete improvements which increase the livability and energy efficiency of their properties. The program provides loans at 6% simple interest with repayment terms up to 15 years. The maximum amount that can be borrowed is based on the number of units in the property. 1 and 2 Unit Buildings Minimum: $1,000 Maximum: $25,000 C1 • SCHEDULE A Page 8 3 or More Units Minimum: $1,000 Maximum: Lesser of $10,000 per unit, not to exceed $100,000 per structure. All loans over $5,000 must be secured with a separate mortgage against the property to be improved. 2. Funding Source The Rental Rehabilitation Loan Program will be solely funded by the MHFA. CEE will originate and sell loans directly to MHFA. The Authority will not provide any funding under this program. 3. Program Administrator The Center for Energy and Environment will market, administer and close all loans under this program. 4. Qualifications Income Limits: None Underwriting: The property generally must show positive cash flow after the rehabilitation work is complete. For loans which are unsecured, the borrower must have the ability to repay the loan based on their own personal finances. For loans which are secured, the property must show positive cashflow after the rehab is completed. Equity: The borrower must have sufficient equity in the property, if the loan exceeds $5,000. Property Type: Non - owner- occupied, residential rental properties located in the City of Fridley. 5. Program Specifics After the improvements are completed a certain portion of the units must be occupied by households with incomes less than 80% of the state median income. m SCHEDULE A Page 9 6. General Requirements This program is available to any rental property owner in the City of Fridley who meets the guidelines of the programs as described in Section H(A)(1 -7). 7. Improvements Borrowers shall use funds under this program to make permanent repairs and improvements to their properties. Improvements shall be limited to those defined in the most current version of the MHFA Rental Rehabilitation Loan Program Procedural Guide. B. RENTAL ENERGY LOAN PROGRAM 1. Loan Description The Rental Energy Loan Program is funded by the Minnesota Department of Public Service and uses Exxon Oil Overcharge funds. The program provides loans at 4 % simple interest with repayment terms up to 5 years. The minimum and maximum loan amounts are as follows: Minimum: $500 Maximum: $10,000 All loans over $3,500 must be secured with a separate mortgage against the property to be improved. 2. Funding Source The Rental Energy Loan Program will be solely funded by the Minnesota Department of Public Service. CEE will originate and sell loans directly to MnDPS. The Authority will not provide any funding under this program. 3. Program Administrator The Center for Energy and Environment will market, administer and close all loans under this program. 4. Qualifications Income Limits: None • SCHEDULE A Page 10 Underwriting: The property generally must show positive cash flow after the rehabilitation work is complete. For loans which are unsecured, the borrower must have the ability to repay the loan based on their own personal finances. For loans which are secured, the property must show positive cashflow after the rehab is completed. Equity: The borrower must have sufficient equity in the property, if the loan exceeds $5,000. Property Type: Non owner - occupied, residential rental properties located in the City of Fridley. 5. Program Specifics None. 6. General Requirements This program is available to any rental property owner in the City of Fridley who meets the guidelines of the programs described in Section II(B)(1 -7). 7. Improvements Borrowers shall use funds under this program to make permanent repairs and improvements to their properties. Improvements shall be limited to those defined in the most current version of the Minnesota Department of Public Service Rental Energy Loan Fund Procedural Guide. C. LAST RESORT RENTAL LOAN PROGRAM 1. Loan Description This program is designed for those rental property owners who cannot qualify for any other Authority loan or grant programs. Funding will be provided in the form of a deferred payment loan up to $10,000 per unit, not to exceed $50,000 per structure. * For the first ten years, 2% (simple interest) charged on the principal balance. SCHEDULE A Page 11 After ten years, no interest shall be charged. The Last Resort Loan is due and payable when the home is sold or after twenty (20) years from the date of the loan note, whichever comes first. The Last Resort Loan may be prepaid at any time. The Authority, may at its discretion, extend the maturity date of a Last Resort Loan. 2. Funding Source The Last Resort Rental Loan Program will be funded solely by the Authority. 3. Program Administrator The Center for Energy and Environment will market, administer and close all Last Resort Rental Loan Program Loans. 4. Qualifications Income Limits: No income limit. Underwriting: This is a last resort program and as such applicants shall be selected for this program only if they are unable to qualify for financing through other Authority programs. The Authority and the Program Administrator shall work in co- operation to identify all possible resources before an applicant can be considered for this program. Equity: The Last Resort Loan shall be secured with a separate mortgage. Property Type: Non - owner- occupied, residential rental properties located in the City of Fridley. 5. Program Specifics . The Last Resort Rental Loan Program is designed specifically for rental property owners who can't qualify for a loan or a grant. Because there are numerous variables which are used when underwriting a multiple family rental loan, it is difficult to list all of the scenarios which would qualify an applicant for the Last Resort Rental Loan Program. In general, the following criteria will be used as primary factors: � I� • SCHEDULE A Page 12 a. Borrowers who have a negative cashflow on their property. b. Borrowers who have no equity in their property and the Loan-to- Value Ratio (with the new debt) which exceeds 100 %, but is not greater than 125%. C. Borrowers who have had credit problems, such as slow payment. This program is not available to borrowers with pending bankruptcies or foreclosures, unpaid judgements or liens, or non - payment of real estate taxes /assessments. 6. General Requirements This program is available to rental property owners on a case- by-case basis. The Authority Board of Commissioners shall specifically approve all Last Resort Rental Loans in excess of $10,000. 7. Improvements Borrowers shall use funds under this program to make permanent repairs and improvements to their properties. Improvements shall be limited to those defined in the most current version of the MHFA Rental Rehabilitation Loan Program Procedural Guide. MEMORANDUM HOUSING REDEVELOPMENT AUTHORITY DATE: April 5, 1996 TO: William Bums, Executive Director of HRAA 4k FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator' SUBJECT: Consider Loan Servicing Agreement with the Community Reinvestment Fund (CRF) The Community Reinvestment Fund will provide loan servicing responsibilities for the HRA under the Revolving Loan Program. A revised Loan Servicing Agreement is attached. The revised document includes the following changes: 1. Sec. 1 (h) was modified to reference the Federal Fair Debt Collection Practices Act. 2. Sec. 10 was added to ensure that CRF complies with data privacy laws. In the next week we will begin closing loans that will be transferred to CRF for servicing. Recommendation Staff recommends that the HRA approve the attached resolution authorizing a loan servicing agreement with the Community Reinvestment Fund. GF/ M- 96-173 Summary of CRF Loan Service Agreement 1. The agreement runs from April 1, 1996 through December 31, 1996. 2. CRF will be responsible for collecting all loan repayments and in turn remitting those funds to the HRA on a monthly basis. This service will include preparing a coupon book for borrowers to use when making payments. In addition, CRF will prepare all loan payoff statements and satisfactions. CRF will report on a monthly basis all payment histories and any other pertinent information. 3. CRF will charge an initial set -up fee of $15.00 and a monthly service fee of $4.50 per loan. CEE utilizes CRF for all of its own loan servicing on the rental energy loan program, a portfolio worth close $1.2 million. The fees charged to the HRA are consistent with those charged to CEE. 4. Exhibit A to the Agreement describes all of the loan collection steps CRF will take. 5. Agreement may be terminated at any time. HRA RESOLUTION NO. y� - 1996 RESOLUTION AUTHORISING EXECUTION OF A LOAN SERVICING AGREEMENT WITH THE COMMUNITY REINVESTMENT FUND, INC. WHEREAS, the Housing and Redevelopment, Authority in and for the City of Fridley (the "HRA") has developed a Comprehensive Housing Rehabilitation Program to assist property owners in maintaining and improving their properties; and WHEREAS, the HRA has established a Revolving Loan Program to meet the needs of homeowners who are unable to qualify for financial assistance through other HRA programs; and WHEREAS, the HRA has determined that it would be cost - effective to utilize an outside contractor to service the Revolving Loans; and WHEREAS, the Community Reinvestment Fund, Inc. (the "CRF ") has the capability and experience to service the Revolving Loans. NOW, THEREFORE, BE IT RESOLVED THAT, the HRA hereby accepts CRF's proposal to service the HRA's Revolving Loan Program on the following conditions: 1. CRF's initial loan set -up fee shall not exceed $15.00 per loan nor shall the monthly service fee exceed $4.50 per loan. 2. The Chair and Executive Director are hereby authorized to execute a Loan Servicing Agreement with CRF. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS DAY OF , 1996. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR +6128851298 +6128551298 CASSERLY MOLZAHN 466 P02 APR 04'96 11:58 LOAN SERVICING AGREEMENT BETWEEN THE COMMUNITY REINVESTMENT FUND, INC. AND HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA April 1, 1996 �1r +6128851298 +6128851298 CAS"--:ERLY MOLZAHN 468 P03 APR 04'96 17:5E LOAN SERVICING AGREEMENT TMS AGREEMENT entered into as of April 1, 1996 between Commtmity Reinvestment Fund, Inc., a Minnesota nonprofit corporation ( "Servicer") and Dousing and Redevelopment Authority In And For the City of Fridley, Minnesota ( "the Authority ") WITNESSETH that in consideration of their mutual undertakings and payments provided herein, the parties recite, covenant and agree as follows: VVEOKRFAS, the Servicer is a nonprofit corporation engaged in the purchasing, origination and/or servicing of development loan.-" and represents that it is qualified and authorized to perform the services described herein; and WHEREAS, the Servioer is authorized to function as a servicing agent under the terms of this agreement; and WHEREAS, the Authority now desires to have Servicer perform the duties set forth herein for loans funded solely by the Authority (the "Authority Funded Program Loans- or "Loans') which are covered by this Loan Servicing Agreement (the "Agreement') WHEREAS, the Authority has contracted with the Center for Energy and Environment to originate Authority Funded Program Loans j NOW THEREFORE, Services and the Authority agree as follows_ Section 1. Jg� Servicer shall, at all times and with respect to all Authority Funded Program Loans which it has been engaged by the Authority to service, perform in a manner consistent with normal and prudent servicing acid collection practices as follows= (a) Maintaining Loan Files. Servicer shall maintain complete and current information, notices, documents, correspondence and loan service eommzrrts relating to each Loan. (b) Billu>f Servicer will deliver to each borrower a billing for the monthly amount due on each Loan. The billing may take the form of a coupon book, and shall set forth the amount of monthly payments due and the due date, and shall otherwise conform to all applicable state and federal laws. (c) Collecting Loan Payments. The Serviccr shall collect monthly payments from the borrowers as further specifted in Exhibit A in the event that the amount paid is not sufficient to pay in full the monthly payment when due from the borrower, then the Servicer shalt diligently collect or use its best efforts to collect each such monthly payment when due, or as soon thereafter as possible. If payments are received by the Servicer in excess of all amounts due from the borrower, then such excess amounts shall be applied by the Servicer as provided in the documents evidencing the Authority Funded Program Loans. (d) Payment Records_ Servicer shall maintain or cause to be maintained accurate records of such payments showing principal, interest, outstanding balance and other charges_ (e) Remitting Loan Payments to the Authority. In accordance with procedures set forth herein or amended in writing by the Authority from time to time, Servicer shall remit or cause to be remitted to the Authority no later than the tenth day of each +6128851298 +6128551298 CASSERLY MOLZAHN 468 PO4 APR 04'96 17-59 month the amount of payments received for principal and interest less any set -up and monthly loan servicing fees due to Servicer on all Authority Funded Program Loans being serviced on behalf of the Authority for which a loan file was set up or for which payments were received during the preceding month - (f) lan ��a tisfactions. Servicer will take responsibility to produce recordable mortgage satisfactions as Loans are paid off in the normal course of business. In this instance, Servicer will act as agent on behalf of the Authority to satisfy mortgage liens as those Lours are paid in full. (gJ 1Zcgortirrg. Servicer shall submit a monthly report to the Authority which includes the following information_ • Loan principal and interest payments received; a trial balance with reconciliation showing beginning principal balance of the Lowis less principal payments received equals ending principal balance on trial balance summary Loan delinquency statistics + a summary of amounts being remitted to the Authority by (1) Loan interest payments, and (2) Loan principal payments. (h) Defaulted Authority Funded Prosarann• With respect to defaulted Loans, the Servicer shall take actions as are consistent with normal and prudent servicing practices. Subject to Section 1(c) above and Z- Jiibit A attached hereto, the Servicer shall have full power and authority, acting alone, in its own name, to do any and 311 things in connection with such servicing and administration which it may deem necessary or desirable. To the extent necessary in connection with any defaulted Loans, the Scrviccr may requcM a power of attorney for purposes of foreclosure or other appropriate action. Servicer shall comply with 15 United States Code Section 1692a et. sea (Federal Fair Debt Collection Practices Act). (i) Insuranoe_ Servicer, during the term of this contract, shall have in force the following insurance: at least $25,000 in employee dishonesty coverage or a fidelity bond in at least that amount. (}) jj *res( Paid. On or before January 31 st of each year, Servicer shall provide to each borrower a statement showing the interest paid during the proceeding year and the principal balance at the end of that year. Section 2. Effective Transfer Dates. Servicer shalll eor=ence activities under this Agreement effective on the dates specified in paragraph (a) in this Section 2. (a) Transfer of New Authority Funded Loans. From time to time, the Authority may transfer the Authority Funded Program Loans that it originates or has caused to originate and which are closed subsequent to the date of this Agreement. When the Authority closes a Loan, it shall give to the borrower at closing a servicing letter stating that Service' will service the Loan. showing the address to which payments are to be sent and providing the fast payment coupon to borrower. The Authority shall then transfer the Loan file, including original promissory note, and a copy of the servicing letter described herein to Servicer within ten (10) working days of the closing and disbursement of the Loma. The Authority will cooperate with Servicer, and provide or cause its prior servic er, if any, to provide to Servicer such information as may be necessary to reconcile any Loan balance information provided to Servicer, and Servicer may rely in good faith on information provided to it by the Authority. 2 9E a +6128851298 +612GOS1298 CASSERLY MOLZAHN 468 P05 APR 04'96 17_ Section 3. 59YIcinj% Compensation The Authority shall compensate Servicer in the manner in accordance with the fee schedule presented below. Zof Initial SeLUp Fee Monthly Servicing Fee Authority Funded Program Loan $15.00 $4.50 Monthly, Servicer shall deduct from amounts to be remitted to the Authority Initial Set -Up Fees from Loans transferred to Servicer during the preceding month and the Monthly Servicing Fee for each outstanding Loan which has not been declared inactive by the Authority. If, in the event that the amounts collected during the month, are insufficient to pay amounts due Servicer in their entirety, Servicer shall invoice the Authority for the difference owed to it. -Inactive' Loans are all Loans with respect to which the Authority has authorized in writing a write off or a forbearance or deferral of collection activities pursuant to procedures described in Exhibit A, and any other Loans removed from active status as described in Exhibit A. Servicer shall deduct amounts owed to it for servicing compensation from remittances to the Authority and shall provide a detailed monthly report to the Authority including a calculation of the amount of the fee to be deducted and showing activities regarding all past due Loans as required by E }.hibit k and indicating which Loans are to be deemed inactive, and the Authority and Services shall mutually agree on the classification of Loans as inactive. The Authority has the right to withhold or recover payment of servicing compensation if, in its judgment, based on reasonable methods of verification, it finds that Servicer is not complying with the collection procedures in Exhibit A. Section 4. Servicing Expenses: Nature of Agreement. Servicer shall perform all of its services and duties hereunder at its own expense and without cost or charge to the Authority except as expressly provided in Section 3 herein. Servicer acknowledges that this Agreement does not constitute a joint venture; that the Authority is not responsible for Servicer's acts, and that Servicer is acting as an independent contractor and not as agent for the Authority except as may be specifically provided for herein_ Section 5. Promissory Notes. ScMccr shall retain custody of original promissory notes, and Services shall take reasonable precautions to safeguard the original Loan promissory notes in its possession to minimize the risk of loss from fire or natural disaster. Section 6_ !7isaster e v (a) Servicer shall take all reasonable precautions to safeguard information regarding the Authority Funded program Loans to minimize the risk of loss from fire, natural disaster or electronic data system failures; (b) Servicer shall keep duplicate records of all electronic information in its possession pertaining to the Authority Funded program Loans and shall store such records in a site remote from its main offices; and (c) In the event of a natural disaster or catastrophic failure of Servioer's electronic data system, Servicer shall have a period not to exceed 45 days farm the date of such catastrophe to recover or reconstruct such lost data necessary to comply with Section I hereof. Section 7_ Civil Rights; Bqual Emf looMent gpporilmity. The Servicer shall comply with all applicable provisions of Minnesota Statutes, Section 181.59. Section 8. Term of Agreement_ Either the Authority or Servicer may terminate servicing by Servicer with respect to any Loan or all Loans upon thirty(30) days written notice delivered to the other party by Certified Mail. Upon such termination, Servicer shall promptly supply appropriate reports, documents, promissory notes and other information as requested by the Authority or any person or entity designated by the Authority and shall use its best efforts to effect the orderly and efficient transfer of servicing; to the Authority or a new servicer designated by the Authority_ 9F toiZ66�12IJ6 +6128851298 CASS,ERLY MOLZAHN 468 P06 APR 04'96 18:00 Section 9. Qainme�t t of Rights. Servioer acknowledges that all right, title and interest in and to this Loan Servicing Agreement may be assigned by the Authority to its successor or any trustee designated by the Authority, if any, and that the successor and trustee shall have the rights to enforce the same_ The Servicer may not assign its rights undcr this Loan Servicing Agreement without the prior written consent of the Authority. Section 10. Data Practices. Servicer shall comply with the provisions of Minnesota Statutes Chapter 13 (Government Data Practices) that are applicable to the Authority and shall not disseminate any information concerning loan repayment histories without the prior written approval of the Authority. Accepted and Agreed to: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA (Authority) By: Its: And 13y-, Its: DATED: 11 , 19 COMMUNITY REINVESTMEN'i FUND, INC. (Servicer) By: Its: DATED: 4 9G W +6128851298 +6128 51298 CASSERLY MOLZAHN 468 P07 EXHIBIT A Servicer Standard Collection Procedures APR 04'96 18:0_? 1. If a payment is not received on the due date, Servicer shall send borrower a collection letter requesting the payment on or about 15 days after the due date but no later than 30 days after the due date. 2. If the past due payment is not received within one week after the first letter has been postmarked, Servicer shall send a second collection letter to the borrower not later than the last day of the month subsequent to the month in which the payment was due. 3. If the payment is not received within one week after the second collection letter has been postmarked, Servicer will attempt to contact the borrower by telephone and request payment verbally. 4. If the borrower is contacted by telephone and the matter cannot be resolved, Servicer may request a face- to-face interview with the borrower, or may advise the borrower by letter what options are available to resolve the matter. 5. If Servicer and borrower agree to a written collection schedule, the collection schedule shall generally provide that loan payments will corntrnence no later that one month from the date of the agr"ment. 6. If a borrower who has been repeatedly delinquent in the past (unless the delinquencies usually have been cured before a second collection letter is necessary) is subsequently delinquent with respect to any loan payment, Servicer will attempt to contact the borrower by telephone within a week after the payment was due to request payment. 7- Servicer will send borrower a letter within a week after the telephone call described in the preceding paragraph has been made notifying the borrower that, in the future, the note or notes will be accelerated if payments are late. S. If the borrower cannot be contact by telephone as described in paragraph 3, or an interview cannot be completed as described in par'agr'aph. 4, or an agreement is not rcachad as described in paragraph 5, then Servicer shall send a final notice and attempt to contact tlae borrower by telephone within three days of sending the final notice of delinquent account. 9. If the Servicer does not receive payment within ten days of the third and final notice, Servicer shall send borrower a notice of acceleration which details the charges involved it, foreclosure proceedings and gives the borrower 30 days in which to cure the dcfiult- 10. If the Servicer does not receive payment by the deadline named in the acceleration notice, Servicer shall meet with the Authority to discuss the default and the action that must be taken. At that time, Servicer will present to the Authority a detailed report of collection efforts sa the Authority may determine how it will handle further action- The loan will be removed from the trial balance and declared Inactive. 1.1. Upon the completion of any bankruptcy or estate proceedings (or if servicing should be suspended or other action taken during the pending of such proceedings), Scrvicer shall advise the Authority within two weeks of any uncollected balance on the note which should be written oft; removed from the trial balance and declared Inactive- 12. If, in Servicer's judgment, it is more likely to collect payment of any loan if it deviates from the collection standards described herein, Servicer will notify the Authority of its intention to deviate from the collection standards and provide an alternative collection plan. 5 9H MEMORANDUM HOUSING AND REDEVELOPMENT AUTHORITY DATE: April 5, 1996 TO: William Burns, Executive Director of HRA 41 4 FROM: Barbara Dacy, Community Development Director SUBJECT: Review Concept Plan for Lake Pointe Office Park Dave Jellison will be present at Thursday's meeting to review the proposed concept plan for Lake Pointe Office Park. The purpose of the concept plan review is to permit the HRA to provide preliminary feedback/direction to the developer prior to adoption of the Master Plan. It is anticipated that the Planning Commission will review the Master Plan at its May 15, 1996 meeting with HRA consideration at its June 13, 1996 meeting. City Council approval of the Master Plan will occur on June 24, 1996. As you know, the S -2, Redevelopment District, which the property is now zoned, also requires redevelopment plan approval prior to initiation of construction. No action is requested of the HRA at this meeting; however, preliminary feedback about the concept plan is encourage at this time. Update on Traffic, Air, and Noise Analysis The traffic, air quality, and noise testing has been completed and the Indirect Source Permit application is nearly finished (a copy may be available by the meeting). The carbon monoxide levels, even with the development, are lower than the originally predicted levels ten years ago. Despite the fact that there are more cars on the roadways, cars are more gas efficient, gas has less pollutants, and the computer models and tests to monitor air quality have also improved. Results of the noise tests show that the existing levels of noise from 1 -694 exceed the recommended standards by the MPCA around the proposed project. The noise from the proposed development will result from the increased amount of traffic. The Concept Plan for Lake Pointe April 5, 1996 Page 2 anticipated amount of increased traffic, however, will not create a perceptible increase in the amount of noise. Consultant Contract The Indirect Source Permit application will be submitted to MPCA shortly. HRA action is not required. We are not anticipating any problems with its approval. The traffic analysis confirmed the original study's conclusion regarding the necessity for improvement to the Highway 65 intersection. The City /HRA was successful in its grant application for federal funding; a savings of $1,500,000! Staff is now developing a timetable for plan preparation and construction. The funds are not available until 1999 but the City /HRA may be able to construct the improvements earlier and receive reimbursement later. Neighborhood Meeting On March 7, 1996, MEPC reviewed the concept plan for the development with the neighborhood. The residents were concerned about the intensity of lighting on the parking decks, site lines from the office buildings into the neighborhood, impact of the development on adjacent property values, the operation of West Moore Lake Drive at peak hour with the school buses, and general concerns about the increase in traffic. Another meeting is scheduled for Thursday, April 18, 1996 at 7:00 p.m. to follow up on these issues. Summary No action is needed on the concept plan by the HRA at this time. MEPC will also update the HRA about its marketing activities. BD /dw M -96 -167 10A MEMORANDUM HOUSING AND REDEVELOPMENT AUTHORITY DATE: April 5, 1996 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Femelius, Housing Coordinator SUBJECT: Update on Scattered Site Acquisition Program Oliver Tam Tam is in the process of completing a home at 5924 2nd Street N.E. and expects to have the home completed by the end of this month. The two other homes he plans to build are located on the old Custom Mechanical site in Hyde Park at the corner of 60th and 3rd Street. Tam should begin construction on one home within the next few weeks, but will have to wait until early summer to begin the second home. The delay for the second home is due to removal of the slip -off from University Avenue to 3rd Street A date for removal of the ramp is being negotiated between the City and MNDOT. Diane Schommer Four Diamond Builders has completed the single family home for Ms. Schommer. They closed on the home on April 1st. Whitney Homes As mentioned in an earlier memo, Whitney Homes has submitted their proposed house plan designs and is continuing to market the lots it purchased at 5720 Polk Street N.E. and 623 Lafayette Street N.E. According to Brad Dunham, Edina Realty, there is an interested buyer for the Lafayette Street property. Construction on this site can't take place until later this spring when the utilities will be relocated and new sewer and water service installed. Dunham indicated he has had very little interest in the Polk Street lot and feels that its proximity to Moore Lake Apartments has some influence. Scattered Site Update Memo April 5, 1996 Page 2 Other Sites At the present time we are evaluating several potential sites for acquisition. We have acquired one home at 6431 Jackson Street N.E. which can be designated for the Housing Replacement Program whether it is demolished or rehabilitated. The HRA may designate a total of ten sites this year. Additional information will be presented at the May meeting on our proposed acquisition activities. Finally, during the month of March we completed the sale of the vacant lot at 683 Glencoe Street N.E. to Joe Paulzine and closed on a home site with Whitney Homes at 547 Glencoe Street N.E. GF/ M -96 -171 11A MEMORANDUM HOUSING AND REDEVELOPMENT AUTHORITY DATE: April 5, 1996 TO: William Bums, Executive Director of HR44YI FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Update on Home Remodeling and Garden Fair, Home Remodeling Counselor, and Housing Programs Home Remodeling and Garden Fair Plans are being finalized for our first annual Home Remodeling and Garden Fair to held on Saturday, April 20, 1996 from 10:00 a.m. to 3:00 p.m. in the Fridley High School Cafeteria. We are pleased to announce that Home Depot has agreed to co- sponsor the event with the HRA and has contributed $5,000 for the event. We have confirmations from more than 60 different exhibitors, including general remodeling contractors, roofers, siding contractors, kitchen cabinet specialists, landscapers, nurseries, interior designers and many more. Also scheduled during the day are several workshops on such topics as "Kitchens of the 90's ", "Patios and Deck Ideas ", "Energy Conservation ", "Interior Design ", "Landscaping Ideas" and "Home Gardening ". In addition, the Dewalt Tool Company and Wagner Power Painters will host tool demonstrations, courtesy of Home Depot. There are many staff members who are assisting in this effort and we hope for a good turnout. Finally, we are looking for dignitaries to announce door prizes during the day and would welcome participation from any HRA members. Attached is a short memo which desribes what will be done and the appropriate times. If anyone is interested, please contact either Grant Femelius at 572 -3591 or myself at 572 -3590 for details. Home Remodeling Counselor Robert Van Nelson, HRA Home Remodeling Counselor has been extremely busy. As you know this is a free service to Fridley homeowners to help them with home improvement questions and advice. Over the course of the last three weeks Robert Update Memo April 5, 1996 Page 2 has received 68 phone calls, completed 13 consultations, and scheduled 33 appointments. The balance of the calls were referred to other staff or resources. Housing Programs Attached is a summary of loan activity for the month of March. The report is somewhat deceiving since it doesn't reflect any loan application received (14) or loans ready to close (4). In addition, it doesn't show that CEE has sent out more than 100 applications to interested homeowners. We hope that demand for the program will continue throughout the spring and that additional inquiries will be generated during the remodeling fair. GF/ M -96 -170 12A map 19 co co y 00 Lo N O N c c M 7 ca 7 C m m g 3 3 Q a) a� c c 3 3 0 0 ) a a ) E E 2 2 08 8 8 U) O o 0 U) (0M(n0 v EA�EA6 v N N N N O N NNN O) EA EA EA Efl N LU) (U) 0 cli M (O N o N EA EA 03) r N EA EA CM (A0 -8 8 N(n(00 N Ch (O N O N EA EA EA r N fA co OM)OMfOg) W (.00 cm O N N N (O LL LL LL O) LL Y Y Y Y m m m m aaaa m m m m vv�-a 2 2 2 2 a`> Q- a) CL c O_ c O oa oa mmmco E c E c O m O m 222 Cc !A ta � o U) to U) d N N N H EA 6% L O (U) 4A N cr) 0), % ,to- O 8 L O CO �-V,n � EA to i (O M (O co ((O <O N N N O 6 (Cob Q 0 2 Y Y m Liar (D (D 2 2 U N N N c c c 0) a) a) a° a ) 0 0 0 2 2 2 F- U) r L� r r N a a) 0 U lL Z Z O t C O cli COD LL r N E EA to � � q U U U U EAR = c 7 LL 0 map 19 co co y 00 Lo N O N c c M 7 ca 7 C m m g 3 3 Q a) a� c c 3 3 0 0 ) a a ) E E 2 2 08 8 8 U) O o 0 U) (0M(n0 v EA�EA6 v N N N N O N NNN O) EA EA EA Efl N LU) (U) 0 cli M (O N o N EA EA 03) r N EA EA CM (A0 -8 8 N(n(00 N Ch (O N O N EA EA EA r N fA co OM)OMfOg) W (.00 cm O N N N (O LL LL LL O) LL Y Y Y Y m m m m aaaa m m m m vv�-a 2 2 2 2 a`> Q- a) CL c O_ c O oa oa mmmco E c E c O m O m 222 Cc !A ta � o U) to U) d N N N H EA 6% L O (U) 4A N cr) 0), % ,to- O 8 L O CO �-V,n � EA to i (O M (O co ((O <O N N N O 6 (Cob Q 0 2 Y Y m Liar (D (D 2 2 U N N N c c c 0) a) a) a° a ) 0 0 0 2 2 2 O N } (O Of O) Y (C) Q N i CU c a a) 0 CIS 0)0)0)0) cccc 0) co cc.0 E m U U U U U U 0 E 0 i0 of io i0 i0 i6 2 U m 2 o (7 C7 2222 222 s� rn O O CL c W Z 6 O C3 O a0) ct ° ( Q m to O c >. (� L Z' C C N� N cu C7 U td CO (n N M N iC� N M v! c r"O-. c O L-0 Ov(00(MO U Oha_D i O O Q r r r CO CO CO U') LO ca CO Of U) tq h LL J ' LL O N } (O Of O) Y (C) Q N i CU MEMORANDUM HOUSING AND REDEVELOPMENT AUTHORITY DATE: April 5, 1996 TO: William Bums, Executive Director of HRA 44fi' / FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Two Requests for TIF Assistance In the March 1996 packet, an information memo was submitted about two requests for TIF assistance from Allan Mechanical, Inc. and American Excelsior. Since March, Allan Mechanical, Inc. has decided not to pursue the site in the Northco Business Park because they found an existing building in Eden Prairie which met their needs. An expansion of TIF District #14 was to be proposed; however, that process has been abandoned. American Excelsior is still pursuing the six acre site at the southeast corner of 81 st Avenue and Main Street in TIF District #3. Although I have not received formal documentation at this time, soil correction costs have been estimated on a preliminary basis at $150,000. The proposed project cost is approximately $2,242,000. American Excelsior has hired Ryan to construct the building. Additional soil borings will be completed in the next few weeks. Jim Casserly and I have advised the petitioner that the HRA, in two previous projects, has provided assistance with a combination of a 5% grant and a 5% loan. To -date, American Excelsior has said that a loan would not be advantageous to them. In response, Casserly and I have said that the HRA has not made a grant amount for assistance in excess of 5% of the project cost, but substantial information about the amount of assistance needed for the soil correction should be submitted for HRA consideration. A development contract may be on the May agenda to provide assistance of up to 5% via a grant ($112,000) which is consistent with previous HRA policy. If American Excelsior is going to request an amount in excess of 5 %, they may be attending the May meeting to present their case. Two Requests for TIF Assistance April 5, 1996 Page 2 No action is needed by the HRA on these items at this time. Casserly's memos are attached for background information. American Excelsior has filed a TIF assistance application and appropriate fee. BD /dw 13A Vacant Commercial and Industrial Property Inventory Property Information Owner: Loren Richards 16841 Helium St. NW Ramsey, MN 55303 PIN: 2- 30 -24 -32 -0025 Area: 273,280 Sq. Ft./6.27 Ac. Market Value: $100,400 (1995) Zoning: M -2, Heavy Industrial Wetlands on Site Located in TIF #3 N 9 +6128851298 +6128551298 CASSERLY MOLZAHN 403 P02 Casseariy Moizahn & Associates, Inc. MAR 13196 17 :53 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 American Excelsior Company Attn: Wayne D. Meckley, C.P.A., Tax Manager FROM: James R. Casserly Mary E. Molzahn RE: Assistance to American Excelsior DATE: March 13, 1996 Enclosed each of you will find the following Schedules: 1. Assumptions 2. Scenario A Revenue Note 3. Scenario B Loan. Schedule 4. Comparison of Taxes: City of Fridley — City of Brooklyn Park The first three schedules contrast the value in 1996 dollars of providing assistance in the form of a revenue note versus providing assistance with an upfront grant and an upfront loan. If the assistance is in the form of returning $200,000 of tax increment as it becomes available, then Scenario A- Revenue Note indicates that the value of that assistance is $160,427. If the assistance is $100,000 grant and $100,000 loan, the value of $100,000 grant is $100,000 while the present value of the loan repayments are $86,621 as shown on Scenario B- Loan Schedule. This latter amount must be subtracted from $100,000 to provide a comparison. Accordingly, the value of the loan and grant assistance package is $113,379 versus the value of the revenue note which is $160,427. Clearly the revenue note approach has a greater value to American Excelsior. However, if a site in Brooklyn Park is to be compared with a site in Fridley, the taxes paid in each city should be compared. The Comparison of Taxes Schedule shows the annual taxes paid in 13C +b128851298 � +6128851298 CASSERLY MOLZAHN 403 P03 !.._,MFt IFZ 1-:31 96 17 Fridley and the annual taxes paid in Brooklyn Park using current tax rates. The project in Brooklyn Park would pay $16,625 more per year in taxes. Assuming no inflationary increases and a constant tax rate, the project in Brooklyn Park would pay $332,505 more in taxes over 20 taxable years. If the annual amounts are present valued to the year 1996, the present value savings is $157,661. Clearly there is a substantial tax savings to American Excelsior by constructing its project in the City of Fridley. Although the Loan and grant program is not quite as advantageous as the revenue note approach, the difference will be made up in less than four tax years. The Fridley loan and grant program plus the tax savings potential is clearly superior to a revenue note program that might be available in Brooklyn Park. If any further information is needed, please give us a call. JRC /MEM /kh 13D +6128851298 1 +6128851298 CASSERLY MOLZAHN 403 PO4 CITY OF FRIDLEY, MINNESOTA ASSUMPTIONS MAR 13'96 17:54 Original Market Value 100,400 Original Tax Capacity 4.600% 4,618 Estimated Market Value $6,000 sf @ 30.00 /sf 1,680,000 Estimated Tax Capacity 4.600% 77,280 Estimated Taxes 56,000 sf @ 1.67 /sf 93,689 Construction 1996 Valuation 1 997 Taxes Payable 1998 Pay 1996 Tax date 1 .21233 Admin Pees 10.000% Inflation 0.000°x6 P. V. Hate 06/01/96 7.500% 13E AMEX1 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES, INC. 13-- Mat -96 +6128851298 +6128851298 CASSERLY MOLZAHN 403 P05 MAR 13'95 17:54 CITY OF FRIDLEY, MINNESOTA SCENARIO A - REVENUE NOTE CASH FLOW ANALYSIS 13F AMEX1 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES, INC. 13-- Mar -96 Original Estimated Estimated Less: Available Available 7.500% P. V. Rate Tax Tax Tax Admin For For Semi Annual Cumulative Date Capacity Capacity Increment Fees City Note Balance Balance 06/01/96 4,618 4,618 0 0 0 0 0 0 12/01/96 4,618 4,618 0 0 0 0 0 0 06/01/97 4,618 77,280 0 0 0 0 0 0 12/01/97 4,618 77,280 0 0 0 0 0 0 06/01 /98 4,618 77,280 44,045 4,404 0 39,640 34,213 34,213 12/01/8 4,618 77,280 44,045 4,404 0 39,640 32,976 67,189 06/01199 4,618 77,280 44,045 4,404 0 39,640 31,784 98,973 12/01/99 4,618 77,280 44,045 4,404 0 39,640 30,635 129,608 06/01/2000, 4,618 77,280 44,045 4,404 0 39,640 29,528 159,136 12/01/2000 4,618 77,280 44,045 4,404 = . 37,842 1,798 1,291 160,427 264,270 26,427 37,842 200,000 160,427 160,427 13F AMEX1 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES, INC. 13-- Mar -96 +6128851298 +6128851298 CASSERLY MOLZRHN 403 P06 MAR 13'96 17:55 CITY OF FRIDLEY, MINNESOTA SCENARIO 8 - LOAN SCHEDULE Principal 100,000 Interest Rate 5.000% Accrued Interest 2 years First P & I Payment 12/01/98 Final P & I Payment 06/01/2006 Amortization Term 8 Present Value of Total Payments 86,621 years Present Value Rate 7.500% Present Value Date 06/01/96 Payment Beginning Accrued Principal Interest Total Ending P. V. of Date Balance Interest Payment Payment Payment Balance Total Payments 06/01/96 100,000 0 0 0 0 100,000 0 12/01/96 100,000 2,500 0 0 0 102,500 0 06/01/97 102,500 2,563 0 0 0 105,063 0 12/01/97 105,063 2,627 0 0 0 107,689 0 06/01/98 107,689 2,692 0 0 0 110,381 0 12/01/98 110,381 5,696 2,760 8,455 104,686 7,034 06/01/99 12101/99 104,686 5183$ 2,617 8,455 98,848 6,779 06/01/2000 98,848 92,864 5,984 2,471 8,455 92,864 6,534 12/01/2000 86,730 6,133 6,287 2,322 2,168 8,455 8,455 86,730 80,444 6,298 6,071 06/01 /2001 80,444 6,444 2,011 8,455 74,000 5,851 12/01/2001 74,000 6,605 1,850 8,455 67,394 5,640 06/01 /2002 67,394 6,770 1,685 8,455 60,624 5,436 12101/2002 60,624 6,9399 1,516 8,455 53,685 5,239 06/0112003 53,685 7,113 1,342 8,455 46,572 5,050 12/01/2003 46,572 7,291 1,164 8,455 39,281 4,867 06/01/2004 39,281 7,473 982 8,455 31,808 4,691 12101/2004 06/01/2005 31,808 24,148 7,660 795 8,455 24,148 4,522 12/01/2005 16,297 7,851 8,048 604 407 8,455 8,455 16,297 8,249 4,358 4,201 06/01/2006 8,249 8,249 206 8,455 (0) 4,049 110,381 24,900 135,282 $6,621 AMEXi PREPARED BY CASSERLY MO 13G SSOCIATES, INC. 13- Mar -96 +6128851298 +6128851298 CASSERLY MOLZAHN 403 P07 CITY OF FRIDL EY, MINNESOTA COMPARISON OF TAXES CITY OF FRIDL EY - CIT OF BROOKLYN PARK MAR 13196 17:55 Estimated Estimated Additional 7,500% P. V. Rate Taxes Taxes Annual Annual Cumulative Year Fridley Brooklyn Park Taxes Balance Balance 1996 0 0 0 0 0 1997 0 0 0 0 0 1998 93,689 110,314 16,625 14,386 14,386 1999 93,689 110,314 16,625 13,383 27,769 2000 93,689 110,314 16,625 12,449 40,218 2001 93,689 110,314 16,625 11,580 51,798 2002 93,689 110,314 16,625 10,773 62,571 2003 93,689 110,314 16,625 10,021 72,592 2004 93,689 110,314 16,625 9,322 871,914 2405 93,689 110,314 16,625 8,671 90,585 2006 93,689 110,314 16,625 8,066 98,652 2007 93,689 110,314 16,625 7,504 106,155 2008 93,689 110,314 16,625 6,980 113,136 2009 93,689 110,314 16,625 6,493 119,629 2010 93,689 110,314 16,625 6,040 125,669 2011 93,689 110,314 16,625 5,619 131,288 2012 93,689 110,314 16,625 5,227 136,514 2013 03,689 110,314 16,625 4,862 141,377 2014 93,689 110,314 16,625 4,523 145,899 2015 93,689 110,314 16,625 4,207 150,107 2016 93,689 110,314 16,625 3,914 154,021 2017 93,689 110,314 16,625 3,641 157,661 1,873,777 2,206,282 332,505 157,661 157,661 Estimated Market Value 1,680,000 Class Rate 4.600% City of Fridley Current Tax Rate 121233 Effective Tax Rate 5.577% City of Brooklyn Park Current Tax Rate 1.42746 Effective Tax Rate 6.566% MEX1 PREPARED BY CASSERLY MOI AJJSSOCIATES, INC. 13- Mar -96 C u American Excelsior Company® AN EMPLOYEE OWNED COMPANY 850 AVENUE H EAST, P.O. BOX 5067, ARLINGTON, TEXAS 76005-5067,(817) 640 -1555 FAX (81 7) 649 -7816 March 11, 1996 Ms. Barbara Dacy Director Community Development City of Fridley 6431 University Ave NE Fridley, MN 55432 Dear Ms. Dacy: Unfortunately, this letter did not reach you in time for your Friday meeting, I was confused somewhat regarding what organization was able to apply for the Tax Increment Financing (TIF). In any event, I am stating herein the investment estimated by American Excelsior Company (AEC) involved with the new warehouse facility if it is built on the 81st and Main Streets location. Land Costs $342,000 Site Work 125,000 Building Costs 1,600,000 Moving Costs 75,000 New Equipment 100,000 Total $2,242,000 We employ 25 persons and this number fluctuates depending on the season and our needs. Hopefully, this along with the annual report, that I hope has reached your hands by this date, gives your committee enough information to gauge the allowed TIF. AEC needs this information in order to make an educated decision regarding our new location. ':'hank you in advance for any help you may be able to give us regarding our new facility. CAN EXCELSIOR C MPANY Wayne D. Meckley Assistant Secretary 131 APPLICATION FORM FOR TAX INCREMENT FINANCING Business Name: American Excelsior Company Address: 850 Avenue H East Type (Partnership, etc.) : Corporation Representative: Wayne D. Meckley Telephone: 817-640-3584 Name of Counsel: Munsch Hardt ET AL Dal 1 as , TX ( 2'14) 855 -7599 Ph i 1 Frankl i n Name and Telephone of Accountant: KPMG - Dallas, TX (214) 754 -2580 Shawn Gilbert List of Financial References: Name /Address /Contact /Telephone SEE ATTACHED Other Comments Pertinent to Your Application: Have You Ever Filed for Bankruptcy? Yes No X If Yes, provide details on separate sheet Have You Ever Defaulted on any Loan Commitment? Yes No X If Yes, provide details on separate sheet INFORMATION CONCERNING APPLICANT'S PROPOSED PROJECT Location of Proposed Development: (Attach a Drawing) Corner of 81st Street NE & Main Street, Fridley, MN Site Plan Hand Delivered TO Barbara Dacy Nature of Proposed Business: Wholesale of various products such as, Urethane Foam Packaging, Polystyrene Packaging, Erosion Control Materials, Wood Excelsior & Other Misc Products 13J Principal Business or Product of the Company? Various types of Foam packaging materials including, Urethane, Polystyrene, Extruded Starch & Wood Excelsior Is the Proposed Project a New Facility or Rehabilitation and /or Expansion of Existing Facility? New Industrial /Commercial /Residential : Commercial What is the Present Employment of Your Firm: 25 What is Your Estimate of Employment One Year After Completion of Project: 30 What is Your Estimate of Employment Five Years After Completion of Project • 40 Total Estimated Project Cost: 2,242,000 Total Estimated Construction Costs • 1,600,000 Potential Other Use of Proposed Development: None Will this Development Attract Other Related Industries: Yes No X How? What Types? What is the Current Zoning Status of the Project Site? In Rezoning, will Zoning Variances or Conditional Use Permits be Required in Connection with the Project? 0 -2- 13K Is the Property Properly Subdivided for the Proposed Use? Yes Has Site Approval been Obtained for this Project? Not at this time If So, When? Est. Construction Completion Date 9/30/96 By Planning Commission? By City Council? Have You Applied for Conventional Financing for the Project? Yes No X If Yes, Provide Details on Separate Sheet, "H. Information to Attach" If No, Why Not? Financing will be accomplished when the project is complete @ 50% of total cost due to the transfer of funds per a like- kind - exchange transaction. INFORMATION TO ATTACH Please include: State Public Purpose -Soil Correction & Site Preparation Description of Project- 56,000 Sq. Ft. Mfg. /Warehouse Facility which includes 4 ,000 Sq. Ft. Office, 24 Ft. Clear Ceiling Schematic Drawing of Project- See Barbara Dacy Breakdown of Project Costs - See Attached Letter to Barbara Dacy, Dated 3/11/96 Amount of Subsidy Request - $242,000 Construction Schedule - 4/15/96 to 9/30/96 Legal Description — (Include PIN's) Other Pertinent Information - Disclosed Upon Request Deposit - $2,500 -3- 13L +6128851298 +6128851298 CASSERLY MOLZRHN Casserly Molzahn & Associates, Inc. 372 P02 MAR 87'96 18 -29 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 FROM: James R. Casserly Mary E. Molzahn RE: American Excelsior DATE: March 7, 1996 The proposed American Excelsior Project on the southeast corner of 81st and Main Street is a manufacturing /warehouse /office building of approximately 56,000 square feet having a market value upon completion of approximately $1,680,000. The total project costs are estimated to be $2 million. The project would be constructed in the City's existing Tax Increment District No. 3. We have been asked to review two scenarios which are described below: In SCENARIO A the Authority would provide assistance in the amount of $200,000 in the form of a pay -as- you -go revenue note. The attached cash flow labelled 'Scenario All indicates that approximately three and one -half years of increment is necessary to recover the HRA's assistance to this project. Under this scenario, after payment of the revenue note, the total amount available for the City, as shown in the column labelled with the same name, is $497,403. In SCENARIO B the Authority would provide a loan in the amount of $100,000 and an upfront grant in the amount of $100,000. The Redeveloper would receive a total of $200,000, as with Scenario A, but the Redeveloper would have to repay $100,000 of the assistance. As with previous projects, the note would be structured so that interest would accrue for the first two years at a rate of 5 percent per annum and then be added to the principal. The balance would then be amortized in equal installments over eight years. The total term of the note would be 10 years. Scenario B indicates that it would take approximately a year and one -half for the Authority to recover its investment in 13M +6128851298 +6128851298 CASSERLY MOLZAHN 372 P03 MAR 07'9G 18:30 the project. The column labelled "Available for City's indicates that the total amount available under this scenario would be $768,564. The amount available for the City under the Grant and Loan Program is $271,161 greater than the amount available to the City by using a revenue note. However, the use of a grant and loan is always riskier than using a revenue note. The revenue note is paid over time and only if the Redeveloper pays its taxes. The risk involved with the grant and loan can be substantially reduced by providing the funds only after the building is constructed and the certificate of completion is issued and by securing the Note with a mortgage. We have used the grant and loan program with the identical percentages described above for both the AGRO -K and the Allen projects. We have been told there are very adequate qualifying expenses and that this assistance will provide a much needed benefit. Assuming that the risk can be minimized, we would recommend that the Authority adopt the loan and grant program described on Scenario B. Please call with any questions or if any further analysis is needed. JRC /MEM /kh Encl 13N +b128851298 +612:3851293 CASSERLY MOLZAHN 372 PO4 CITY OF FRIDLEY. MINNESOTA Original Market Value Original Tax Capacity Estimated Market Value Estimated Tax Capacity Estimated Taxes Construction Valuation Taxes Payable Pay 1996 Tax Rate Admin Fees Inflation P. V. Rate 1996 1997 1998 ASSUMPTIONS 4.600% 56,000 sf @ 4.600°, 56,000 sf @ 1.21233 10,000% 0.000% 06/01 /96 7.500% 30.00 /sf 1.67 /sf 130 1MEXi PREPARED BY CASSERI.' >` ;. t, ;_jA- N & ASSOCIATES. INC. MAR 07'96 18:31 100,400 4,618 1,680,000 77,280 93,689 07—Mar-96 +6128851298 +612";51298 CASSERLY MOLZAHN 372 Pas MAR 07'96 18.31 CITY OF FRIDLEY, MINNESOTA SCENARIO A - REVENUE NOTE CASH FLOW ANALYSIS 836,853 83,685 497,403 255,766 200,000 200,000 13P AMEX1 PREPARED BY CASSERL ' j - r N & ASSOCIATES, INC. 07- Mar -96 Original Estimated Estimated Less: Available Available 7.500% P. V. Rate Tax Tax Tax Admin For For Semi Annual Cumulative Gate Capacity Capacity Increment Fees Clty Note Balance Balance 06/01/96 4,618 4,618 0 0 0 0 0 0 12/01196 4,618 4,618 0 0 0 0 0 0 06/01/97 4,618 77,280 0 0 0 0 0 0 12101/97 4,618 77,280 0 0 0 0 0 0 06/01/98 4,618 77,280 44,045 4,404 0 39,640 34,213 34,213 12/01/98 4,618 77,280 44,045 4,404 0 39,640 32,976 67,189 06/01/99 4,618 77,280 44,045 4,404 0 39,640 31,784 98,973 12/01/99 4,618 77,280 44,045 4,404 0 39,640 30,635 129,608 06/01/2000 4,618 77,280 44,045 4,404 0 39,640 29,528 159,136 12/01/2000 4,618 77,280 44,045 4,404 0 39,640 28,461 187,597 06/01/2001 4,618 77,280 44,045 4,404 21,717 17,923 12,403 200,000 12/01/2001 4,618 77,280 44,045 4,404 39,640 0 0 200,000 0610112002 4,618 77,280 44,045 4,404 39,640 0 0 200,000 12/01/2002 4,618 77,280 44,045 4,404 39,640 0 0 200,000 0610112003 4,618 77,280 44,045 4,404 39,640 0 0 200,000 12/01/2003 4,618 77,280 44,045 4,404 39,640 0 0 200,000 06/01/2004 4,618 77,280 44,045 4,404 39,640 0 0 200,000 12/01/2004 4,618 77,280 44,045 4,404 39,640 0 0 200,000 06/01/2005 4,618 77,280 44,045 4,404 39,640 0 0 200,000 12/01/2005 4,618 77,280 44,045 4,404 39,640 0 0 200,000 06/01/2006 4,618 77,280 44,045 4,404 39,640 0 0 200,000 12/01/2006 4,618 77,280 44,045 4,404 39,640 0 0 200,000 06/01/2007 4,618 77,280 44,045 4,404 39,640 0 0 200,000 836,853 83,685 497,403 255,766 200,000 200,000 13P AMEX1 PREPARED BY CASSERL ' j - r N & ASSOCIATES, INC. 07- Mar -96 +6128851298 +6128851298 CAS- :EPLY MOLZAHN 372 P06 MAP 07'96 18.31 CITY OF FRIDLEY, MINNESOTA SCENARIO B - GRANT & LOAN CASH FLOW ANALYSIS 836,853 83,685 135,282 768,564 119,886 100,000 100,000 AMEX1 PREPARED BY CASSER A r -,HN &ASSOCIATES, INC. 07- Mar -96 Original Estimated Estimated Less: Plus: Available Available 7.500% P. V. Rate Tax Tax Tax Admin Loan For For Semi AnnuaCumulative Date Capacity Capacity Increment Fees Payments Gity Note Balance Balance 06/01/96 4,618 4,618 0 0 0 0 0 0 0 12/01/96 4,618 4,618 0 0 0 0 0 0 0 06/01/97 4,618 77,280 0 0 0 0 0 0 0 12/01/97 4,618 77,280 0 0 0 0 0 0 0 06/01198 4,618 77,280 44,045 4,404 0 0 39,640 34,213 34,213 12/01/98 4,618 77,280 44,045 4,404 8,455 0 48,096 40,010 74,222 06/01/99 4,618 77,280 44,045 4,404 8,455 15,946 32,150 25,778 100,000 12/01/99 4,618 77,280 44,045 4,404 8,455 48,096 0 0 100,000 06/01/2000 4,618 77,280 44,045 4,404 8,455 48,096 0 0 100,000 12/0112000 4,618 77,280 44,045 4,404 8,455 48,096 0 0 100,000 06/01/2001 4,618 77,280 44,045 4,404 8,455 48,096 0 0 100,000 12/01/2001 4,618 77,280 44,045 4,404 8,455 48,096 0 0 100,000 06/0112002 4,618 77,280 44,045 4,404 8,455 48,096 0 0 100,000 12101/2002 4,618 77,280 44,045 4,404 8,455 48,096 0 0 100,000 06/01/2003 4,618 77,280 44,045 4,404 8,455 48,096 0 0 100,000 12/01/2003 4,618 77,280 44,045 4,404 8,455 48,096 0 0 100,000 06/01/2004 4,618 77,280 44,045 4,404 8,455 48,096 0 0 100,000 12/01/2004 4,618 77,280 44,045 4,404 8,455 48,096 0 0 100,000 06/01/2005 4,618 77,280 44,045 4,404 8,455 48,096 0 0 100,000 12/01/2005 4,618 77,280 44,045 4,404 8,455 48,096 0 0 100,000 06,/01/2006 4,618 77,280 44,045 4,404 8,455 48,096 0 0 100,000 12/01%2006 4,618 77,280 44,045 4,404 0 39,640 0 0 100,000 06/01/2007 4,618 77,280 44,045 4,404 0 39,640 0 0 100,000 836,853 83,685 135,282 768,564 119,886 100,000 100,000 AMEX1 PREPARED BY CASSER A r -,HN &ASSOCIATES, INC. 07- Mar -96 +6128851298 +612°x,31298 CASSERLY MOLZAHN 372 P07 CITY OF FRIDLEY, MINNESOTA SCENARIO B - LOAN SCHEDULE Principal Interest Rate Accrued Interest First P & I Payment Final P & I Payment Amortization Term MAR 07196 18:32 100,000 5.000% 2 years 12/01/98 06/01/2006 8 years Payment Date Beginning Balance Accrued Interest Principal Payment Interest Payment Total Payment Ending Balance 06101/96 100,000 0 0 0 0 100,000 12/01 /96 100,000 2,500 0 0 0 102,500 06/01/97 102,500 2,563 0 0 0 105,063 12/01/97 105,063 2,627 0 0 0 107,689 06/01/98 107,689 2,692 0 0 0 110,381 12/01 /98 110,381 5,696 2,760 8,455 104,686 06/01/99 104,686 5,838 2,617 8,455 98,848 12/01/99 98,848 5,984 2,471 8,455 92,864 06/01/2000 92,864 6,133 2,322 8,455 86,730 12/01/2000 86,730 6,287 2,168 8,455 80,444 06101/2001 80,444 6,444 2,011 8,455 74,000 12/01/2001 74,000 6,605 1,850 8,455 67,394 06/01/2002 67,394 6,770 1,685 8,455 60,624 12/01/20029 60,624 6,939 1,516 8,455 53,685 06/01/2003 53,685 7,113 1,342 8,455 46,572 12/01/2003 46,572 7,291 1,164 8,455 39,281 06/01/2004 39,281 7,473 982 8,455 31,808 12/01/2004 31,808 7,660 795 8,455 24,148 06/01/2005 24,148 7,851 604 8,455 16,297 12/01/2005 16,297 8,048 407 8,455 8,249 06/01/2006 8,249 8,249 206 8,455 (0) 110,381 24,900 135,282 13R AMEX1 PREPARED BY CASSER_- ' -."l & ASSOCIATES, INC. 07- Mar -96