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HRA 05/09/1996 - 6264HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, MAY 9, 1996 7:30 P.M. PUBLIC COPY (Please return to Community Development Dept.) S I G N- I N S H E E T HOUSING AND REDEVELOPMENT AUTHORITY MEETING, April 1 1 , 1996 Name Address /Business L) A�' L;�— CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, MAY 9, 1996 7:30 P.M. LOCATION: Council Chambers, Fridley Municipal Center CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: April 11, 1996 CONSENT AGENDA: Revenue and Expenses . . . . . . . . . . . . . . . . 1 - 1D Approval of Stipulation Agreement for . . . . . . . 2 - 2K Jang -Won Restaurant Approval of Change Order No. 3 to . . . . . . . . . 3 - 3D Project No. 281; Southwest Quadrant ACTION ITEMS: Resolution Authorizing Execution of a . . . . . . . 4 - 4E Development Contract for American Excelsior, Inc. Contract for Engineering Services for . . . . . . . 5 - 5E Highway 65 and Lake Pointe Drive Intersection; SEH INFORMATION ITEMS: Wrap -up on 1996 Home Remodeling and . . . . . . . . 6 Garden Fair OTHER BUSINESS: ADJOURNMENT HRA RESOLUTION NO. 10 - 1996 RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY AND AMERICAN EXCELSIOR COMPANY BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority ") as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority enter into a Contract for Private Redevelopment (the "Contract ") with American Excelsior Company (the "Redeveloper "). Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted a development program known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program ") pursuant to Minnesota Statutes, Section 469.001 et se . 2.02. The Authority hereby finds that the Contract promotes the objectives as outlined in its Redevelopment Program. Section 3. Authorization for Execution and Delivery. 3.01. The Chairman and the Executive Director of the Authority are hereby authorized to execute and deliver the Contract when the following condition is met: Substantial conformance of a Contract to the Contract presented to the Authority as of this date. Page 2 - HRA Resolution No. 10 - 1996 PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS 9TH DAY OF MAY, 1996. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING APRIL 11, 1996 CALL TO ORDER: Chairperson Commers called the April 11, 1996, Housing and Redevelopment Authority meeting to order at 7:40 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, John Meyer Members Absent: Jim McFarland, Duane Prairie Others Present: William Burns, Executive Director Jim Casserly, Financial Consultant Grant Fernelius, Housing Coordinator Craig Ellestad, Accountant Leslie Jowett, MEPC David Jellison, MEPC Mayor William Nee (8:30 p.m.) APPROVAL OF FEBRUARY 8 1996 HOUSING AND REDEVELOPMENT •AUTHORITY MEETING• MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the February 8, 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 Mr. Ellestad provided a copy of additional expenses needing approval as outlined in his memo of April 11, 1996. Ms. Schnabel stated agenda item 1B refers to a receipt for rental. What is it that is rented? Mr. Ellestad stated this is the rent for the parking lot at the medical office complex. Ms. Schnabel asked for what check #25944 was issued. Mr. Ellestad stated the City purchased Frank's Used Cars and then boarded up the windows. This check reflects that cost. HOUSING & REDEVELOPMENT AUTHORITY MTG., APRIL 11. 1996 PAGE 2 2. CONSIDER RESOLUTION AUTHORIZING REIMBURSEMENT TO THE CITY OF FRIDLEY FOR THE MISSISSIPPI STREET AND 3RD STREET CONSTRUCTION PROJECT Mr. Commers stated this item relates to the reimbursement to the City for the Mississippi Street improvements and how this would be handled particularly with respect to the assessment of the Holly Center and how this would be paid back to the HRA. Costs would be equally shared between the HRA, Anoka County, Rottlund, and the Holly Center. The Holly Center would be assessed for the cost. The HRA is to reimburse the City for both the HRA and Rottlund's portion. Mr. Burns stated the City will be paying out funds to cover the HRA's share and Rottlund's share. Rottlund will pay the HRA at the time of closing. Ms. Schnabel stated the calculations were not accurate and asked staff to check to see which are correct. 3. CONSIDER ACQUISITION OF 6431 JACKSON STREET 4. CONSIDER 1996 HOME PROGRAM APPLICATION AND MATCHING FUNDS 5. CONSIDER APPROVAL OF PRELIMINARY CONSTRUCTION PLANS FOR CHRISTENSON CROSSING 6. CONSIDER CONSULTANT CONTRACT FOR THE METROPOLITAN LIVABLE COMMUNITIES ACT PLAN REQUIREMENT 7. CONSIDER HOUSE PLANS FOR 5720 POLK STREET MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the Consent Agenda as presented. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS• 8. CONSIDER SERVICE CONTRACT WITH THE CENTER FOR ENERGY AND THE ENVIRONMENT (CEE) Mr. Fernelius stated the resolution authorizes all of the programs that we have talked about previously at the January meeting and authorizes a contract with CEE to administer those programs. The consulting agreement, along with schedule A, describes each of those programs. The agreement itself runs from March 1, 1996, through December 31, 1996. Essentially it authorizes CEE to help us with the marketing efforts. There is a HOUSING & REDEVELOPMENT AUTHORITY MTG., APRIL 11, 1996 PAGE 3 cap of $10,000 for such items as brochures and advertisements in the paper. Staff will closely coordinate and approve everything CEE is doing in terms of marketing. In addition, CEE will be providing some building analysis for the multi - family properties and charging a fee of $130 for those services. The remodeling counselor will provide similar services to single family home owners. The bulk of the agreement talks about the origination of the various loans for single family and multiple family properties. Essentially, there are two tiers of fees. The first is for discount loans, which are the loans on which the HRA would essentially be providing an interest subsidy on behalf of the borrower. When CEE originates those loans, the HRA will pay $125 per loan to cover the processing and origination costs. For those loans that will be strictly funded by the HRA, including the last resort program and revolving loan program, the HRA will pay CEE $225. When HRA funds are used under these last two programs, CEE will conduct a verification that the improvements were made. In the situation where the HRA is providing an interest rate write down greater than $1,500, that cost will be $60 per post installation inspection. Mr. Fernelius stated in the March agenda was attached a draft copy of the consulting agreement which was revised slightly. The agreement now defines how CEE can invoice the HRA for the loans that it originates as well as its fees. Also some grammatical errors were corrected. Mr. Fernelius stated, regarding the overall program, part of our comprehensive programming includes using some funds from the Minnesota Housing Finance Agency (MHFA), specifically under the Community Fix Up Fund. The HRA was sent a letter by the MHFA stating that our proposal was rejected because it was not very specific about where we were going to operate the program. We indicated it would be a citywide program. They want it to be a targeted neighborhood program. Staff will set up a meeting with MHFA to try to come to some type of resolution. We will push for a citywide program. If they are not agreeable to that, we will have to negotiate some other arrangement. If we cannot access MHFA funds, that may mean we will have to access more of our own HRA dollars but we will not exceed the $1.5 million budgeted for housing rehab this year. Mr. Commers stated, when originally going into this, we had the idea that we might be able to get some outside funding. The MHFA rejected the proposal. He did not know if there should be some corresponding reductions in the program. Mr. Fernelius stated he would not recommend that. Staff will not exceed the specified amount. Staff are going to reapply for funds and to hopefully get some kind of commitment from MHFA. HOUSING & REDEVELOPMENT AUTHORITY MTG., APRIL 11, 1996 PAGE 4 Under the Community Fix Up Fund, the HRA is providing an interest rate write downs on loans made to borrowers with incomes up to $58,650. This program has one component to the entire program. While it is an important element, he thought it was one they could manage if they do not get the MHFA funds. It was somewhat of a costly route to go in terms of the interest rate write down. He did not know how detrimental it would be if they did not get the MHFA funds. Mr. Commers asked Mr. Fernelius to break that out for the next meeting and let them know what part of the program is directed towards that aspect. Mr. Burns stated the HRA has the opportunity to re -apply in about one month so there are other opportunities. Mr. Commers stated, as he understands what Mr. Fernelius is saying, these funds applied for from MHFA would be used for one of the various loans. Mr. Fernelius stated this is one of three programs that involved an interest rate down. In the budget, $50,000 was budgeted for interest rate write downs for loans to be made under these three programs. They still intend to use $50,000 for interest rate write downs, but they will use the HRA revolving loan fund for those borrowers who would have qualified for the Community Fix Up Fund. Mr. Commers asked how the MHFA funds were going to be used in that program. Were these funds to be used as a substitute or an addition? Mr. Fernelius stated we were leveraging MHFA dollars. The borrower would essentially receive a loan directly from MHFA. We would write down the interest rate. With this particular program not being available right now, we will have to use our own funds in place of the MHFA funds in the interim. Mr. Commers asked, if MHFA had approved the request, would we have used their funds for the principal. Mr. Fernelius stated this was correct. Mr. Casserly stated the only reason for using MHFA is that you are able to increase the amount of dollars. The money that you are putting towards MHFA programs you never get back. The MHFA interest rates are 8 %. We were writing the interest rate down to 5 %. Now, if we make the loans at 5 %, the HRA cannot do as many loans but we get the money back. MHFA would help us get more loans done. HOUSING & REDEVELOPMENT AUTHORITY MTG., APRIL 11, 1996 PAGE 5 Mr. Commers asked staff to provide additional information at the next meeting. Mr. Fernelius asked the HRA to adopt the resolution to approve the consulting agreement with CEE and to approve three loans already approved. We are now waiting for formalization of the program. Ms. Schnabel stated some of the figures for the loans do not match up with the additional expenses. Mr. Ellestad stated the first two loans have some matching funds so the amount of the HRA expense may be different than the amount in the total column. Mr. Fernelius stated the report is intended to show how much activity is going on and breaking down what the HRA is providing and what we are leveraging. The Other Funds column shows what outside dollars are being leveraged. MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve 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. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the Loan and Grant Summary as reflected on agenda attachment 12B and to approve the loans for the month of March totalling $35,375 for three specific properties. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 9. CONSIDER LOAN SERVICING AGREEMENT WITH THE COMMUNITY REINVESTMENT FUND (CRF) Mr. Fernelius stated the Community Reinvestment Fund is a non- profit organization who will provide loan servicing responsibilities for the HRA Revolving Loans. CRF will collect the monthly payments, keep records of payment histories, work with borrowers to make sure they are current on their payments, etc. A copy of the contract was included in the agenda packet. The contract will run through the end of the year. This is separate from CEE and will be dealt with separately. HOUSING & REDEVELOPMENT AUTHORITY MTG., APRIL 11, 1996 PAGE 6 Mr. Commers stated, as he understands, the actual loan origination and closing will be done by CEE and the on -going servicing done by CRF. Mr. Fernelius stated this was correct. Ms. Schnabel stated the contract runs through December 31. Do we then adopt a new agreement? Mr. Casserly stated this had been modified. Because the loan continues to need servicing, the agreement allows the HRA to cancel this contract at any time. There are no automatic termination dates. Ms. Schnabel asked, if the loans go beyond December 31, 1996, do we automatically extend the contract. Mr. Casserly stated this is being treated as an on -going contract. As long as we originate loans, we are having CRF provide the service. Mr. Commers asked if there were laws to be complied with if the HRA were to change the role of the servicer. Mr. Casserly stated he was sure there are notice requirements. MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve a Resolution Authorizing Execution of a Loan Servicing Agreement with the Community Reinvestment Fund, Inc. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 10. REVIEW CONCEPT PLAN FOR LAKE POINTE OFFICE PARK Mr. Jellison stated he would provide an update on the master plan for Lake Pointe and Ms. Jowett will provide an update on the marketing progress. Mr. Jellison stated in February MEPC hired Edward Farr and Associates to do the master plan for the Lake Pointe office park which Mr. Jellison reviewed. At the entrance from Highway 65 would be the services for the office park. These would be located on the 8 -acre parcel. The large parcel would have office towers and parking ramps. MEPC is proposing the first building at the west end of the site along with a ramp. The first building is proposed to be a five -story building with 124,000 square feet with a ramp that is designed so it can be expanded when going into the second phase. A glass walkway is proposed in front of the ramp. The first level of the parking ramp is HOUSING & REDEVELOPMENT AUTHORITY MTG. , APRIL 11 1996 PAGE 7 proposed to be underground from one side with a second and third level. The walkway would disguise part of the ramp and provide access to two buildings. The park would front I -694 with an access to the front of each of the buildings which would provide handicap parking and /or visitor spaces. In this design, they are trying to minimize the amount of asphalt and put landscaping along the front side. Mr. Jellison stated MEPC is proposing a total of four office buildings with two ramps. The first building would be to the west moving toward the east as the buildings are filled. They have tried to take the buildings and offset them from the ramp in order to provide better views and minimize the number of places looking toward the ramp. They have also designed some open spaces. Mr. Jellison stated the smaller parcel has been designed to have a bank near the entrance, a hotel in the center, and a restaurant. Some ponds have also been included in the proposed plan. Mr. Meyer asked how hard to they try to impose the discipline of this plan to perspective buyers. If someone wanted an office where you have proposed a hotel, how to you handle something like that? Mr. Jellison stated this is difficult but basically they try to say the amenities must be in a certain area and the office area must be further back. Part of this is because of the size and the shape of the property. There is some flexibility to laying this out. MEPC is now calling on hotels and restaurants. A bank has already expressed an interest in the site. MEPC has met with a bank and shown them the concept plan. The bank may be interested in locating in the first office building on the first floor. A concept plan can change, but we have to start someplace to show clients where services will be. Mr. Jellison presented a picture of a proposed office building for the site. MEPC wants to be in the 20,000 square foot floor plate size. For processing operations or claims operations, the users generally want 40,000 square feet which can be done on two floors. They have had good response to buildings with that size. Ms. Jowett stated she had contacted the Hampton Inn. In the process of getting the numbers in, they were able to close on two different sites in the area for this year. That is all they will do in one year. They may pursue this site next year. MEPC went ahead and talked to another developer. They provided some leads and MEPC was also approached by two other developers. They are still looking to get something done sooner than next year. HOUSING & REDEVELOPMENT AUTHORITY MTG., APRIL 11, 1996 PAGE 8 Ms. Jowett stated they also surveyed restaurants in the area. They have talked to some restaurant developers and have had them look at the site. They are in the beginning process of getting some interest there. Ms. Jowett stated MEPC has in the past two months given some presentations to two major users of office space. They are waiting for a proposal to come in from one user who has added Lake Pointe to the list of possible sites. MEPC should receive a request for proposal in about 10 days. They are looking for 135,000 square feet. The company is Lawson Software. Ms. Jowett stated at the second presentation MEPC was one of four major developers invited to talk with American Express. MEPC gave a presentation on Lake Pointe, the client toured the site, and MEPC is now waiting to hear from them. American Express is in the market for 300,000 square feet. They say they need a total of 2 million square feet; and they could put 1 million square feet in a suburban area. Ms. Jowett stated MEPC had a second meeting with N.E. State Bank. They have a representative who is excited about this area, and MEPC has been asked to wait until July or August for a decision about whether they will put a bank on the site or move the construction loan business to the site. This representative is talking to people about the site and helping MEPC get the site built. MEPC has also talked to a law firm who is looking for about 30,000 square feet of space. Mr. Meyer asked, when MEPC tours the site with those from outside the community, do you also have someone from the City present to give a feel for the total community. Ms. Jowett stated they were not privy to be part of the tour. When they give a presentation, they take a demo provided by the City. Mr. Jellison stated, as MEPC gets further, they will be asking staff for their help depending on what comes from the tour. These develop over time. The location will work for us. The developer will work for us also. MEPC also did a focus group where they brought in a number of professional real estate brokers. MEPC showed their plans for the market and asked the brokers what they thought about it. They tried to get real estate people who were knowledgeable about the northern suburbs. He thought Ms. Dacy and Mr. Burns had a copy of that dialogue. Mr. Burns stated four or five negatives came out of that discussion. He contacted Merrill Busch to develop an image building campaign. Mr. Burns thought the City had good resources HOUSING & REDEVELOPMENT AUTHORITY MTG., APRIL 11, 1996 PAGE 9 in the community and would like to use Merrill Busch to do some type of image building. It is important to try to make some effort to offset some of these generally negative comments. Mr. Commers stated he thought it important that they understand that we already have several major national tenants in the City of Fridley, including Medtronics, Onan, etc. Mayor Nee stated he was concerned about the negative comments from the focus groups. He thought they must do something about that. There is a response that could be and should be made. Mr. Jellison stated they were excited when American Express and Lawson Software showed an interest in the site. He thought they would see Class A tenants who will be looking at the northern suburbs. Mr. Burns asked if MEPC had heard from U.S. West. Ms. Jowett stated they have heard from U.S. West but it has not been positive. They are looking further to the west. Mr. Jellison stated U.S. West currently has an office in Brooklyn Park and part of their concern in the current location is the safety of their employees, many of whom are women. Ms. Schnabel asked, with the parking ramp concept, are you also building in some sense of security. Mr. Jellison stated everyone wants a ramp for the idea of parking closer and for shelter from the elements. The concern however is security. At Minneapolis West, MEPC has a security guard available at all hours to walk anyone to their car. They also have monitors where people can call and tell security they are leaving so that security can watch for them. Open lots can also be a negative. Mr. Meyer stated security is an issue. It may be a good idea to sell the security measures to insure safety. Ms. Jowett stated, in the current ramp, they continue to discuss how to keep the ramp safe. Mr. Jellison stated MEPC shows potential users what they do for safety purposes. He realizes an important part of their job is to take care of their tenants and their vehicles. 11. UPDATE ON SCATTERED - SITE /HOUSING REPLACEMENT PROGRAM HOUSING & REDEVELOPMENT AUTHORITY MTG., APRIL 11, 1996 PAGE 10 Mr. Fernelius stated things are going well with Mr. Tam and Ms. Schommer. Whitney Homes, progress is somewhat slow. They are having difficulty marketing the lot at 5720 Polk Street. They have someone interested in the Lafayette Street property; however, they are running into some problems with some utilities that need to be re- located. That may take a while to get corrected. Staff is still evaluating what options the HRA has on the Jackson Street property. Closing is scheduled for May 20. Staff hopes to have a recommendation at the June meeting on what should be done with the property. They have closed on the property on Glencoe Street. 12. UPDATE ON HOME REMODELING AND GARDEN FAIR Mr. Fernelius stated Home Depot made a generous contribution for this event. Staff have been receiving calls from people who have seen ads in the papers. He anticipates a good turn out. Contractors are excited about the event. They like smaller fairs because they seem to get better leads. He thought there was a nice variety of things going on during the day. Mr. Fernelius stated a memo was attached regarding the door prize drawings. Staff is soliciting participation from the HRA members if anyone is available to do so. Several drawings for door prizes will be held. If anyone is interested in announcing the door prizes, please contract Mr. Fernelius for times. Mr. Commers stated he is concerned about the success of the fair and thought they should do whatever they can to make sure there is a great turn out for this event. Mr. Fernelius stated staff has been aggressively marketing the fair in the Fridley Focus. Ms. Schnabel suggested printing a flyer to be sent out through the schools. Mr. Fernelius stated they would have posters. According to the citizens survey, the Fridley Focus is the most popular means by which residents find out about city events. With their circulation, he thought many people would know about it. He has been getting many calls. Mr. Meyer stated there is tough competition with the big show downtown and another held at Northtown. People may be getting saturated. Mr. Commers suggested trying to get a celebrity name to come to the event. HOUSING & REDEVELOPMENT AUTHORITY MTG., APRIL 11, 1996 PAGE 11 Mr. Fernelius stated they had tried to get the couple from the Home Time show, but they were already booked. They have indicated an interest for next year. 13. UPDATE OF TWO REQUESTS FOR TIF ASSISTANCE Mr. Burns stated the project from Allan Mechanical, Inc., has been withdrawn. American Excelsior is still pursuing the site at 81st Avenue and Main Street. Mr. Casserly and he have advised the petitioner that the HRA has, in previous projects, provided assistance with a combination of a 5% grant and a 5% loan. American Excelsior has said a loan would not be advantageous to them. He suggested the HRA might consider talking to them because of the costs of the soil correction on the site. Mr. Commers asked staff to talk to them and have a close estimate of the costs before discussion at a public meeting. Mr. Burns stated he felt staff needed to go back to American Excelsior and have them show there are mitigating circumstances or demonstrate a need as to why they need more than what staff has offered. If they cannot do that, he would recommend they stay with the proposal. Mr. Casserly stated Ms. Dacy has asked for detailed estimates. He thought they were close to have this wrapped up at the 5 %. Then, American Excelsior started doing more analysis and kept finding more and more problems. He thought they would know in the next few weeks the extent of the soil correction and the costs. Mr. Burns stated Ms. Dacy was hoping to have a development agreement before the HRA at the May meeting. OTHER BUSINESS: 14. UPDATE ON FRANK'S USED CAR SITE Mr. Burns stated staff had two meetings with the Hyde Park neighborhood. Staff first met with three or four of the residents as a sort of preview and then had a neighborhood meeting on March 19. Invitations were sent to 180 property owners and 30 to 40 property owners showed up for the meeting. Those attending were generally negative toward a townhome project because they felt such a project would generate a great deal of turnover and eventually result in rental units. They are also concerned about a density of 18 to 20 units and are concerned about additional cars. Staff met with the police and fire department personnel in order to get a better understanding of the perceptions of the Hyde Park residents. There is quite a bit HOUSING & REDEVELOPMENT AUTHORITY MTG., APRIL 11, 1996 PAGE 12 of rush hour traffic through the neighborhood on Main Street and Third Street so there is a valid concern about traffic. Staff is not sure that 20 townhomes would generate a significant increase in traffic, but that is their perception. Mr. Burns stated staff's recommendation is to wait for a time, consider the housing action plan and how the Hyde Park area may fit into that plan. Also, they recommend waiting until the Rottlund project is underway to give residents a chance to see it. They met with other City staff who know the Hyde Park residents to come up with a list of ways to deal with the situation. He thought it would be about three months before going back to talk to the neighborhood. This may put the project into next year, but it is important to do things in concert with the neighborhood. Mr. Commers asked what this would do with the acquisition of the two properties. Mr. Burns stated staff's recommendation is to postpone the acquisitions. They had a purchase agreement to bring forward last month which, if a meeting had been held, staff would have requested the item be tabled. The other is in the process of negotiation. Mr. Commers asked if it was possible to negotiate an option. Mr. Burns stated he thought this may be possible. One property owner had a purchase option on another home and had to back out because of lack of action. Mr. Commers stated the HRA is waiting for the staff to come forward. Mr. Burns stated, if the HRA has an opinion contrary to what staff is doing, please let staff know. Mr. Commers stated this is difficult to do without knowing all of the concerns of the neighborhood. Mr. Meyer stated he is hearing two things. The first is a more methodical traffic count and the other is to let the Rottlund development start so people can be assured of what the end product will be in order to reduce the unhappiness. Mr. Burns stated he had also hoped to do some sort of a tour of homes to give the neighborhood the opportunity to see what has been done through the rehab program and have a tour of townhomes in other areas. He felt that some of the people may have felt intimidated at the meeting and that time may given them an HOUSING & REDEVELOPMENT AUTHORITY MTG., APRIL 11, 1996 PAGE 13 opportunity to come forward individually. He is disappointed that this will not be done in 1996. He thought this was a good project, very visible for the City and has the potential for putting a $2.4 million investment into the Hyde Park area. On the other hand, this project has significance beyond the Hyde Park neighborhood. Right now, he thought we need time to get a consensus. Mr. Schnabel asked if Mr. Burns thought residents resented the HRA purchasing the property. Mr. Burns stated no. He thought they just wanted this property to be rebuilt to single family. At one time, the neighborhood was promised single family homes. There is now more demand for non - traditional housing. Mr. Commers stated previous development in that area was not well accepted. What is the other alternative? Mr. Burns stated an alternative is to develop the Frank's site itself with six or seven single family homes compared to approximately 18 townhomes. The tax increment generated by a larger investment helps avoid costs and gives more money for other parts of Hyde Park. 15. MISCELLANEOUS Mr. Burns stated Ms. Dacy is working with Home Depot to discuss the issues of traffic on 57th. Ms. Dacy is also working with the State of Minnesota on the exit ramp from I -694 at University in the timing of the signal lights to get traffic across University. Mr. Casserly stated the Fridley housing program may be famous soon. Mr. Fernelius is getting calls from others about how we are doing these things. Several other cities have emulated Fridley in the last session of the legislature as far as the housing replacement program. Richfield has done it as has Duluth. We are doing some interesting things here. The City is becoming something of a model because we are not staffing up for these programs but contracting out for the services. The City of Minneapolis has nine people doing what Mr. Fernelius is doing with one of three programs. What one does not see is all of the documents which are not standardized. These have been redesigned to get the required information but not have the applicants feel threatened by the paperwork. ADJOURNMENT: MOTION by Ms. Schnabel, seconded by Mr. Meyer, to adjourn the meeting. HOUSING & REDEVELOPMENT AUTHORITY MTG., APRIL 11, 1996 PAGE 14 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE APRIL 11, 1996, HOUSING AND REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 9:50 P.M. Respectfully submitted, 4AkjU1U i J Lavonn Cooper Recording Secretary TO: FRIDLEY H.R.A FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES APRIL 1996 AI'FiIL t:99B Account #'s for HRA's Use ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES ADMINISTRATIVE OVERHEAD COMPUTER OVERHEAD (For Micro 8 Mini computers) TOTAL ADMINISTRATIVE BILLING: 460 - 0000 -430 -4107 OPERATING EXPENSES: CITY OF FRIDLEY — BALLONS 455- 0000 - 430 -4221 PETERSON ENVIRONMENTAL — LGU ASSISTANCE 455 - 0000 - 430 -4330 U.S. WEST — PHONE SERVICE 460 -0000- 430 -4332 CITY OF FRIDLEY — BAKERY 460 - 0000 - 430 -4337 BENEFITS EXPENSES: CITY OF FRIDLEY — HEALTH INS, MAY CITY OF FRIDLEY — DENTAL INS, MAY CITY OF FRIDLEY — LIFE INS, MAY TOTAL OPERATING EXPENSES 262-0000-219-1001 262-0000-219-1100 262-0000-219-1200 TOTAL BENEFITS EXPENSES TOTAL EXPENDITURES — APRIL 1996 File: \123DATA \HRA \TIF\96BILL.wk1 Details 1 19,800.75 275.85 200.25 20, 276.85 Account #'s for City's Use 101-0000-341-1200 101 -0000- 336 -3000 101-0000-336-3000 6.92 236 -0000- 336 -3000 175.00 236 -0000- 336 -3000 14.42 236 -0000- 336 -3000 16.07 236 -0000- 336 -3000 212.41 182.40 236 -0000- 219 -1001 20.53 236 -0000- 219 -1100 3.50 236 -0000- 219 -1200 206.43 $20,.695.69< -10 O N W cc O O O O 0 W O O am aM CD Ic 00 O Co. z p r O 0 N In d M P w O •- r C O r z . 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At issue is whether Jang Won was entitled to an additional $29,325.19. The restaurant owner has been paid $68,459.91 to -date. The Hearing Officer, Gordon L. Jensen, had to determine if the additional expenses were eligible moving costs or "reestablishment expenses ". A cap of $10,000 for reestablishment expenses is established in the Uniform Relocation Act. The amount paid to Jang Won already constitutes primarily moving expenses plus the $10,000 cap. The Hearing Officer found that $13,300 of the requested amount was in fact additional eligible moving expenses which the Authority should pay Jang Won. RECOMMENDATION Staff recommends the HRA approve the stipulation agreement authorizing payment of $13,300 to the Jang -Won Restaurant. BD /dw M -96 -215 2 ROBERT A. GUZY BERNARD E. STEFFEN RICHARD A. MERRILL DARRELL A. JENSEN BGS JEFFREY S. JOHNSON RUSSELL 11. CROWDER Barna V (� uzy & Steffen Ltd. JON P. ERICKSON LAWRENCE R. JOHNSON ATTORNEYS AT LAW DAVID A. COSSI THOMAS P MALONE 400 Northtown Financial Plaza MICHAEL F. HURLEY 200 Coon Rapids Boulevard VIRGIL C. HERRICK HERMAN L. TALLE Minneapolis, MN 55433 -5894 (612) 780 -8500 FAX (612) 780 -1777 Writer's Direct Line (612) 783 -5122 April 26, 1996 CHARLES M. SEYKORA DANIEL D. GANTER, JR. BEVERLY K. DODGE CRAIG M. AYERS GREGG V. HERRICK JAMES D. HOEFT JOAN M. QUADE SCOTT M. LEPAK ELIZABETH A. SCHADIN( WILLIAM F. HUEFNER JONATHAN K. REPPE ROBERT C. HYNES 1935.1993 Barbara Dacy VIA FAX NO. 571 -1287 City of Fridley AND MAIL 6431 University Ave N Fridley, MN 55432 RE: Jang -Won Relocation Appeal Dear Barb: Enclosed please find a copy of the Stipulation Agreement which has been forwarded to Mr. Huffman for his review and signature by the Jangs. It is my understanding that this matter will be on the HRA agenda for May 9, 1996. I believe the Agreement is self explanatory, but if you need my assistance in presenting the same to the commissioners, I will have to do so by memo, as I will be on vacation from May 8 through the 14th. With regard to the check for the final settlement of $13,300, Mr. Huffman has requested that the check be made payable to Seong Ho Jang, Kyung Sook Jang and Richard W. Huffman. Unless I hear otherwise from Mr. Huffman, once the commissioners have approved the Agreement, we should send a copy fo the fully executed Stipulation along with the check directly to Mr. Huffman's office. As always, should you have any other questions regarding this matter, please do not hesitate in contacting me. Thank you for the opportunity to be of service. ely, James H JDH:set Enclosure cc (w /enc): Alan Webster An Equal Opportunity Employer 2A FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY; STIPULATION AGREEMENT IN THE MATTER OF THE RELOCATION ASSISTANCE OF JANG -WON RESTAURANT This Stipulation Agreement is entered into this day of , 1996, by and between the Fridley Housing & Redevelopment Authority (hereinafter referred to as "Authority "), and the Jang -Won Restaurant, Seong Ho Jang and Kyung Sook Jang (hereinafter collectively referred to as "Jang- Won "); RECITALS WHEREAS, in 1995, the Authority acquired title by eminent domain to certain real property upon which Jang -Won operated a restaurant; and WHEREAS, pursuant to said eminent domain proceedings, Jang - Won was entitled to relocation benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (hereinafter referred to as the "Act "); and WHEREAS, the Authority made a determination as to the amount of said relocation benefits to be paid to Jang -Won for re- establishment of its restaurant business at a new location; and WHEREAS, Jan -Won appealed said determination of the Authority pursuant to the appeal rights of the Act, and by mutual agreement of the parties, Gordon L. Jensen was appointed as the Hearing Officer to preside over and determine the respective claims of the parties; and WHEREAS, on February 12, 1996, the Hearing Officer and each of the parties met at the relocation site and reviewed the physical modifications made to Jang -Won's trade fixtures and the new restaurant site for which reimbursement is claimed; and WHEREAS, following the site inspection, the parties reconvened in the Fridley City Hall for the appeal hearing, wherein each party was given the opportunity to present such witnesses and exhibits as they deemed appropriate in support of their respective positions; and WHEREAS, on March 8, 1996, said Hearing Examiner issued his Decision, concluding that Jang -Won is entitled to recover an additional sum of $13,300.00 as "eligible costs" under Section 24.303 of the Act; and WHEREAS, either party has the right to appeal said Decision to the State District Court. 9i NOW, THEREFORE, the parties hereto stipulate and agree as follows: 1. That upon execution of this Agreement, the Authority shall pay to Jang -Won the sum of $13,300.00 (in addition to the relocation benefits already paid to date) as full and final settlement of any and all relocation benefit claims pursuant to the Act. 2. That Jang -Won does hereby and forever discharge the Authority, its employees, agents, heirs, assigns and successors from all claims, damages, actions and causes of action, and demands of every kind and nature, known and unknown, liquidated or unliquidated in law and in equity. 3. That the parties hereto declare and represent that no promise, inducement or agreement not herein referred to or expressed has been made and that this Agreement contains the entire agreement between the parties and that the terms of the Agreement are contractual and not a mere recital. IN WITNESS WHEREOF, the parties have executed this Agreement effective the day and year first written above. FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY By: William W. Burns Its: Executive Director Ltm Its: Lawrence Commers Chairperson JANG -WON RESTAURANT By: Its: Seong Ho Jang Kyung Sook Jang g : \munic \fridley \hra \fang- won.agr -2- ROBFR'T' A. OUZY BERNARD E- S EFFEN RJCHAR) A. MERRILL DARRELL A. JENSEN JEP'MEY S. JOHNSON RUSSELL H. CROWDER JON P ER1CKiON LAWRENCE R. JOHNSON DAVID A. CLZSI THOMAS P..MALONE MICHAEL F. HURLEY VIRGIL C. HEMCK HERMAN L. TALLE DATE: TO: COMPANY /LOCATION: I)!$.) N(I Barna, Guzy & Steffen, Ltd. ATTORNExs AT LAW 400 Northtown Finatn.ciM Plaza 200 Coon Rapids Boulevard Minneapolis, MN 55433-5894 (612) 780 -8500 FAX (612) 780 -1777 FAX TRANSMITTAL COVER PAGE March 12, 1996 �r FRIDLEY HRA COMPANY'S FAX NO.: 571 -1287 FROM: JIM HOEFT CHARI.I'S,A, SENXORA DANtI�L i >. jr,. F,ErR(0' K.; X)I) GE CRA16 1,s, gYERS OREGG V,, 14FRRICK JOAN W (VADE EOUTS'''iL EEFAK ELJVZA .',Frl IX SCRkDING WILLLA11,k i HUi+NER JONAI;3=X,Z L REPPE ROBERT C. 1A NES t,f)s -I'V: MESSkU: Re: Tang -Won Appeal Enclosed please find a copy of the Hearing Officer's decision regarding the Jangle appeal of their relocation benefits. Please review the decision and contact me with any questions, comments or concerns you might have_ I spoke with Dick Huffman today and he indicated that he would be meeting with the Jangle next week to see how they wanted to proceed. While they will probably be disappointed with the result. Dick does not believe they have the financia_, means to appeal this decision to the District court. He will get back to me around the end of next week with the Jang's decision. I informed Dick that would recommend that the ERA accept the decision. Thanks. * I also sent a copy of the decision to Alan Webster for his review and comments. TOTAL PAGES INCLUDING THIS SHEET: 8 Please notify Sarah at 612- 780 -8500 if all pages are not received. The information contained in this facsimile message is attorney privileged and confidential information intended only for the use of the individual or entir_f,, named above. If the reader of this message is not the intended recipient, or the employee or agent responsible to deliver it to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please immediately notify us by telephone, and rcaturn the original message to us at the above address via the U.S. Postal Service. We will be happy to reimburse you for the postage. An Equal Opp _ aloper JENSEN & SWA2NSON, P.A. ATWwwrs AT LAw naza noeweM mw caosame Stmx e2o1 BttooxLYN PARK, Uma:goTA 554-43 T'mmaom (612) 424 -8811 lb"Ax (612) 493 -5193 G0003" 1_ Jet' WK1UU G. SWAMM PrmK L.. Mn&aawuw`* Simi. A. Ptrw Huffman, Usem, Sabo, Crawford & Greenberg, P.A. Attention: Richard W. Huffman 1000 Water Park Place 5101 Olson Memorial Higbway Minneapolis, MN 55422 and Bam, Guzy & Steffen, Ltd. Attention: Jim Hoeft 400 Northtown Financial Plaza 200 Coon Rapids Blvd. Minneapolis, MN 55433 -5894 Dear Mt. Huffrnan and Mr. Hoeft: March S, 1996 W 1 •1:•. _ S.lYA1J1 FAC,9MffiE T 5 �5 -2'350 FACSIMILE T LON 780r-' 1777 Enclosed is my Decision in regard to the Fridley HRA/Jang -Won Appeal. I apologize to both (Yf you and your respective clients for the extended delay iti rendering the enclosed opinion. I was utlable: to locate any Pr0('r-drnt to :jpply to this case and also ran into the problem of heilig Cbair of A Corltir�E inn Legal Education Seminar conducted the latter part of February. Tbank you for allowing role to serve. Sincerely, Gordon L. lertsen JENSEN & SWANSON, P.A. GLJ: sab Enclosures •Baal Eetate Speeialtat CtrtWcd By The Minnesota State Bar Aesodafion " Ccrtiflcd Public Accountant Z00d X29 *ON M'I A2nS r NOSNUnS '8 N3 N3f E6 pt, zT9 2'MV(11.01.hr e.:9T 96./W.1 -Ea Fridley Housiaag Redevelopment Authority, vs. Tang -Won Restaurant, M79 9__"�..._.. The undersigned, Gordon L. Jensen, Attorney at Law, 8525 Edinbrook Crossing, Drooklyn. Park, Minnesota 55443 was appointed hearing officer in an appeal taken by Jang�Won Restaurant (fang) from Fridley Housing Redevelopment Authority (FHRA) denial of certain claimed reimbursement amounts In aomiection with relocation of its oriental restaurant from leased premises commonly known as 6440 University Avenue N.E., Fridley, Minnesota 55432, to a new business location, 4920 Central A.'vonue N.E., Columbia Heights, Minnesota. The new location was formerly a restaurant facility but was aot used as an "oriental restaurant ". FHRA was represented by James D. Hoeft, Attorney at law and Jang was represented by Richard W. Huffman, Attorney at Law. The undersigned, legal counsel and representatives for the respective parties, and representatives of Michael J. Crowe, Inc. Construction Management, the construction manager for re- establishment of the restaurant operation at 4920 Central Avenue N.E., Columbia Heights, Minnesota met at the relocation site on Monday, February 12th at 9:00 a.m. and viewed the physical :modifications made to Jang's trade fixtures and the new restatwoot site for which reimbursement is claimed. Following the site inspection, the parties reconvened in a conference room at Fridley City Hall, 6431 University Avenue N.E., Fridley, Minnesota. The proceedings were tape recorded. Each party was given the opportunity to present such witnesses aW exhibits as they deemed appropriate in support of their respective positions. The issue on appoal &W determined by the hearing officer is as follows: Are the following costs and expenses claimed by .iang-Won Restaurant "actual, reasonable, moving and related expenses" within Section 24.303 of the Uniform Relocation Assistance in I eal Property Acquisition Policies Act of 1970, as amended (tire "Act "); are they "re-- establishment expenses" covered by Section 24.304 of said Act, .or are they ineligible for reimbursement under Section 24.305 of said Act? The disputed item are: (a) Installation of grease traps as required by the City Building lnspmtor. $2,5*69 (b) Installation of FRP board and demolition of walls: 8,400.00 (c) installation of vinyl rock ceiling: 1,060,00 (d) Demolition of existing overhead electrical: goo. oo (e) Install new kitchen lighting: 800'2 (f) Construction Management fee: (g) Signage hook -up: 500.00 ' (h) Moving, hook -up and reinstallation of make -up air unit, hoods and fire suppression system: 7,641.50 I �88d EE9'ON MU-1 A7M bNddS f NosN"Ys '8 N3SN3f ii:9T 96/aO/20 Testimony waA received in regard to the foregoing items from witnesses called by the respective counsel. Based upon the testimony, a reviews and analysis of the applicable sections of the Uniform Relocation Assistance And Real Property Acquisition Policies Act of 1970 as amended (the "Act ") and i the arguments of counsel, the following analysis of the Act has been applied to the claim. ANALYSIS No issue waS raised on appeal regarding re- establishment expenses capped and paid pursuant to Section 24.304 of the Act. Payments permitted and made pursuant to Section 24.304 are In addition to payments available under Section 24.303. Therefore, it is necessary to consider whether or not any of the requested items fall within the "re- establishment expenses" and therefore have been compensated as "re- establishment expenses ". "Eligible expenses" are defined in Section 24.304(a), They include: (a) Repairs or improvements to the replacement real property as required by federal, state or local law, code or ordinance. (b) Modifications to the replacement property to accommodate the business operation 06r make replacement structure suitable for conducting the business. (a) Constiuction and installation costs not to exceed $1,500.110 for exterior signagc to advertise the business. (d) Redecoration or replacement of soiled or worn surfaces at the replacement sites, sttcll as paint, paneling or carpeting. Of particular note in regard to the fixed dollar limit and the broad categories included within "r-e- estabiisttment expenses" is the preamble for Section 24.304 which sets forth a policy stateme nt explaining the fixed statutory maximum ($10,000.00) is a "cost control" for expenses which are believed to be vulnerable to abuse. It is noted that none of the items claimed by the Appellant fall within the " ineligible expmses" as defined in Section 24.304(b). In considering whether the appealed costs and expenses are "elijible costs" to be reimbursed in accordance with Section 24.303, it is also necessary to consider whether f;.ny or all of the items are categorically "ineligible moving and related expenses" as defined in paragraph 24.305. Section 24.305 precludes inclusion as Section 24.303 expenses the following: (a) The cost of moving any real property improvement in which the displaced person reserved ownership. (b) Physical changes to the real property at the replacement location of a business...extept as provided in Section 24.303(x)(3) and Section 24.304(x), in analyzing the inEarrelationship between Section 24.3030) and Section 24.304(x), observations contained in the preamble must be considered: 2 KJW LS�g . W md-1 Azm Ctky'da F NOSNUMS S N3SN3t T T : 5 T 96,193-'x© 96d ZT9 (a) "These costs may be necessary to make the real property suitable for the business operation and could generally enhance the value of real property (Section 24.3()4(a) expenses); and (b) Costs under Section 24.303(a)(3) are limited to what is "necessary ", without dollar limitation. (c) Costs wader Section 24.303(a)(3) are costs incurred: (i) To attach relocated personal property to utility service already provided on site ... and (ii) Modifications to the equipment or to the on site utility service "if rtecessmy ". These costs must be necessary to reinstall personal property that has been wow-,d from a displacement site or newly installed at such site and would gencrally Q.ply , benefit the relocated business operation. The provisions of Section 24.503(a), applicable to the Jang claLm :bat certain itcws are "eligit4c costs" limited only as to "necessity" are: (a) Section 24.303(x)(3) provides as follows: (i) Disconnecting, dismantling, removing, reassembling and reinstalling relocated machinery, equipment and other personal property...This includes cormection to utilities available nearby. It also includes modification of the personal property necessary to adapt it to the replacement structure, the replacement site, or the utilities at the replacement site and modifications necessary to adapt the utilities at the replacement site to the personal property. (b) Section. 24.303(a)(8) permits recovery of professional services necessary for: (i} (ii) Moving the personal property; and (iii) Installing the relocated personal property at the replacement location. (c) Section 24.303(a)(14) permits recovery of moving related expenses that are not listed as ineligible under Section 24.305 as the agency determines to be reasonable and nccQ.saary. Neither the FH12A nor Jang provided legal authority interpreting the foregoing statutory provisions nor any precedent fact situations to consider. Counsel for the respective parties did submit in evidence for consideration the following: 3 S0Q<i fw!E9 *ON fITI 1kzn9 F Wa4ul s 18 I -GSNX IT-'9T 96/80:1 -0 E62b ?-Y9 I (a) An'appraisal of the former restaurant site dated February 13, 1995 and prepared on behalf of the City of Fridley. (b) A "booklet" prepared and promulgated by the U.S. Department of Housing and Urban Development entitled "Relocation Assistatace to Displace Businesses, Non-- PFC()flt Organizations and Farms ". (c) A Settlement of Claims Agreement in the condemnation case Fridley vs. Suh, Anoka County File No. 02- C7- 95- 000934. (d) A Lease Agreement dated September 3, 1993 for the premises at 6440 University Avwiue N.E. , Fridley, Minnesota. MCISIQN Based upon the testimony, exhibits, site viewing, arguments of counsel and applying the foregoing provisions of the Act, I find as respects the claimed expenses as follows: 1. Installation of grease traps as required by City Building Inspector. This item claimed is a "re- establishment expense" and an "eligible expense" as defined in Section 24.304 (a). It is reecosniaed that this improvement was necessary to comply with the local health code, however, it is a bettermew to the real property and I find that it is a "repair or improvement" to the roplacoment real property as required by federal, state or local law, code or ordinance under Section 24.304(a)(1). Reimbursement Allowed: $0;00 2. Installation of FRIG board and demolition of walls. This item is reirmburseable as an "eligible cost" as a "related expense" under Section 24.303(a)(3). Because the electrical utilities and plumbing utilities within the walls of the replacement building had to be modified to accept the relocated business equipment, the demolition and rebuilding of the walls should be reimbursed. The newly installed Fly' board may be a capital improvement to the real property, however, no allocation lzas men provided between the purchase and installation of the F P board and the utility connection issue. I fWd that the claim for this item is a "modification necessary to adapt the utilities at the replacement site to the personal property" and Is a related expense under Section 24.202(a)(3). Reimbursement Allowed: $8,4(lE)'"00 3. Demolition of existing overhead electrical. This item is a related expense under Section 24.303(a)(3). Amount Allowed: 4 $9')1):00 9Wd 229'0N MU-1 AZn 9 Wdua f NOSNUMS 8 N351J3L T T= 9 T 96i BO/ co Z6T t? zT9 Act 4. fnstull new kitchen lighting_ This amount is Rn improvement to the real property covered by Section 24.304(x) and reimbursement under Section 24.303(a)(3) is denied. Amount Allowed: $0•0 5. Installation of vinyl rock ceiling. This amount is an improvement to the real property covered by Section 24.304(x) and reimbursement under Section 23.303(a)(3) is denied. Amount Allowed: WOO 6. Construction Management Fee. A portion of the Contract Management Fee claimed is related to and has been compensated under Section 2.304. A portion of the fee may be allocated and reimbursed under Section 24.303(a)(8). Amount Allowed: $3,5("0.00 7. Signage Hook -Up. Testimony established that a outlet was moved in order to relex;ate interior signage. It is "interior" rather than "exterior" and therefore not included in Section 24.304(x). Although it is lard to believe that the relocation of an outlet cost $500.00, no evidence was produced to the contrary. Amount Allowed: $500£ 00 8. Moving, Hook -Up and Reinstallation of Make -Up Air Unit, Hoods and Fire Suppresslan System. Introduced in evidence was the Lease Agreement for the previous restaurant site. That Lease Agreement provided in Article 10 as follows: "All additions, fixtures and improvements which may be made by the Lessee, exempt moveable trade fixtures, shall immediately become the property of the Lessor and rerazin upon the Demised Premises as part thereof, and be surrendered with the Demised Premises at the expiration or earlier termination of this Lease." Due to this language in the Lease, the fact that the equipment was -purchased by the Tenant in November, 1993 is not relevant although Jiang asserts ownership. At such tune as the FHRA acquired title to the former site, title to the Thrane equipment, as fixtures, became the property of the FHRA. The FHRA apparently permitted .sang to take the fixtures and the relocation of the same are iael-igrible moving and related expenses under Section 24.:305. Amount Allowed: 5 $0.00 L OOd EE9 * ON t'ld -I AZn9 W6V F NOSNt "S B N3S NX T T :9 T 96/18113/M "'5b ZI9 Tn conclusion I find Tang -Won Restaurant is entitled to recover as Sectinn 24.3[}3 eligible clas.is the sum of $13,300.00. Dated: March 8, 1996 Gor otL. Jensen Hearing Officer z811gIf �fTld 1 -0t _ana 800d 229' CIA MU-1 AZf19 <- NOS"dMS I N�3t T T =9T 96 -•Sa-1 0 2 V ZT9 MEMORANDUM HOUSING F� REDEVELOPMENT AUTHORITY DATE: May 3, 1996 TO: William Burns, Executive Director of HRA+� FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Change Order No. 3 to Demolition Project #281 Herbst and Sons, Const. Co. is scheduled to begin the last phase of demolition for the Southwest Quad project on May 6th. The frontage road along University Ave. north of Satellite Lane will be removed. A change order is necessary to include minor additional work in the Southwest Quadrant and for two projects in the scattered -site program. Since the contractor will already have equipment in town, staff requested a quote for the demolition of a single family home at 530 Hugo St. and for removal of a portion of the slip -off ramp from University Avenue to 3rd St. at 60th Ave. 530 Hugo St. was purchased early last winter and has been vacant for several months. All of the utilities have been disconnected and we had planned to demolish the structure this spring anyway. The slip -off ramp lies over a lot that the HRA received as part of the Custom Mechanical acquisition and was subsequently sold to Oliver Tam for a new home. Mr. Tam has started construction on one home and is waiting for the ramp to be removed to start the second home. Attached is a summary of costs and previous change orders. Please note that the additional costs will be will be charged to the Housing Coordinator Fund (262) and not the Southwest Quad Project. A minor amount of work is also needed for the Southwest Quadrant. The original contract did not include removal of 3rd Street. It has also been determined that a small abandoned water line also needs to be removed. Herbst has estimated the additional work to cost $5,000. The total cost for demolition work for the Southwest Quadrant will be $202,300 as compared to the $247,147 which was budgeted. Change Order No. 3 May 3, 1996 Page 2 Recommendation Staff recommends that the HRA approve Change Order No. 3 to the contract with Herbst and Sons, Const. Co. for $14,700. GF/ M -96 -213 W Summary of Southwest Quad Demolition Project Costs Original Contract (6/12/95) Change Order No. 1 (8/95) Demolition of 4 homes Change Order No. 2 (9/95) Additional asbestos and concrete removal Change Order No. 3 530 Hugo St. Demolition Slip -off Ramp Removal (to Right -of -Way) 3rd Street and water line Total Cost M $194,200 $ 19,300 $ 3,100 $ 5,500 $ 4,200 $ 5,000 $ 14,700 $231,300 Herbst and Sun. C ... I. Cu., Inc. Cony STANDARD FORM PROPOSAL AND CONTRACT Herbst and Sons Const. Co., Inc. Minneapolis- 784 -8510 2299 Co. Rd. H ND_ 7543 New Brighton, Minnesota 55112 DEMOLITION CONTRACTORS OWNER 572 -3591 ATT: Grant AGENT TO: CITY OF FRIDLEY 6431 University Ave. N. E., Fridley, Mn. 55432 ARCHITECT _.. - ....... _...... --- --------- - -- --- -- _._ CONTRACTOR Made this .......................... . 1st ..................... -.........---..day of --------- ------- Ma ....... 18.96 For ...... •Demolb.t. ion- o.f- bIri.ld.in %......... -. - ................ .._....... 530 Hu o St. Locatedat .............. ......$.................------- ----..............---....... ...---•-----......-•---......-- -------....................... ..............- ................ in the City of ................ r.idley.......................................... State of --------- Minneso- ta---------- - -------------_---- .................. Subject to the Terms and Conditions hereinafter stipulated: (1) We agree to wreck, dismantle, and.'or ttmoe, the xl,uve described xtruct. re..... in ........Uort will, the f,41 —in¢ xntcifiutiona: Utility disconnections to be made and paid for by:..- ...Owner casement to be left clean and empty: Yes .----- X........ No ---------------- 3asement to be filled with non - combustible material and dirt: Yes ...... X...__ No ................ Erection of barricade around basement hole after wrecking to be done by. --- HERBST- S- .SONS- --Il: -- REQUIRED-........ Barricades furnished by contractor to remain his property and returned to him upon release by owner. Contract- ors liability on property to cease upon erection and acceptance of barricades by owner. Salvageable material to remain property of owner:..... -- HERBST 5 -. SONS -- CONST- .--CQ..,..INC...- . ... . . . . .. ... .............. ......... ... .. .......... --- -. _- -... - _ .. _... - - .... ......... . - -------- ree Removal: ........ None._ ..................... -- - - ._......- ... -... _.. -- ........_.._..... eveling of Lot: -------- to.- alatch- .exsisting-- grade_---.- --- ----- -_..__..----- --- -. - -.- ......................-...---- Permit to be paid by:.. -- HERBST & SONS CONST. CO. , INC. _......_ .................... ................ .......... .... ...__._....... ............................... Completion time: ---- 7..-ddyS..af> �r..ngt ce..to _.proceed, -- weather perm tting, . .. ------ ------------------ --- - ---- --- - - - - -- Other Contract conditions:...._ Wreck..building,- .clean _ up.- yard,... remove-- blackt- o .p_tini.ve ..... Herb--t..ta...... place top soil and seed. ........................................... ._.. ....... .__....._._...... .. -- -- --- - ------- -- - --- -- - ---- ------ •-- ------- ....... ............... - ----------------------- -- ...-- ........ ...... _................ ...... .... ..... ....................... (2) We will do this work for and in consideration of our receiving all salvage of every nature and description contained in and,,or derived from said wrecking, all of which is to become our property, and in addition thereto payment to us of the sum of .... FIVE- .THOUSAND- -FIVE HDNDRED AND NO /100---- - - - - -- Dollars ($.5t500:00 payment of which shall be made as follows:.. .............. 30_..day.s_..afLe.r --c.o-mp.leLt.io.rL..O.f-.co-zLLr.a.Qt .......................... (a) Persons or companies furnishing labor or materials for the improvement of real property may enforce a lien upon the im- proved land If they are not paid for their contributions, even if such parties have no direct contractual relationship with the owner; (b) Minnesota law permits the owner to withhold from his contractor to much of the contract price as may be necessary to meet the demands of all other lien claimants, pay directly such liens and deduct the cost thereof from the contract price, or withhold amounts from his contractor until the expiration of 90 days from the completion of such improvement unless the contractor furnishes to the owner waivers of claims for mechanics' liens signed by persons who furnished any labor or material for the improvement and who provided the owner with timely notice. Fuwtracu,r. Insurance Coverage, Workmen's Campeoaatipa and'., Workmn'.. Liability, statutory, Public Liability or Bodily injury, {700,000 each person, SS-M, each accident. Property Damage, (150,000 each accident, $200,000 aggregate. le) This .eonoe.l, it accented. shall ,atitute a tract sad agreement bctw. +m the Wrecking Contractor and the Owner, Architect, or General . ante.eter, y of their agents, for the cw-ecking of he buildings or struen— named herein. (0) Notwithstanding the reference i previous paragrsohe p, ^ eck, diemxntir. Ind r, move" ,od.•ss otherwise 1—ifieally stated in the specifications, e Wrecking Cyn[racwr r ryes the ri¢ht to Aiamantic the LailJin¢ n. buildings by reducing the soar.,alls, ceiling, and roofs to eat panel, or to .n•.o,e the building as whole ar substantially as • whole, or be a compli.hing such wrecking, dismantling, anti ermov4 by such other means as it elects. ,ndii,on a. when thiststoo— alteJas under he submtted .... and tithe Owner ell bt�hisinaQents a tructnr to I— to rtheAeWreking Can t -clar Cthetrcreseiiingli market price •for — materials n salva¢a taken from the. o e. by the Ole— o others in the ¢intervening time. 17) The Wrecking Contractor shall not ebe sheld 11.1,1. for the adegnacy or re.lwnaibility f any of the Architect's or Owner'a plans, specifications or d c.IIns for shoring. bracing, ntemporarr construction, such a canopies and lridg.x, n- the xt,hility r a In, of haildinga, party walla, adjoining build. , r h-1,, hrrxof, �hieh in he left atandin¢: nor dnea rlhtia orow—I include ally of the nbor works nles, aorcifically mentioned herein. ,e.1 This un,rwsal is suhmitteA order the assumption that he plans an,[ a, ificotions x complete (unless otherwise noted), and no work is to be included that 6 not specifically m tioned. Any extra work which the Wrecking Contractor isrreq —ted to perform shall be paid for as extra work, and will be done only on the written direction of the Owner or Architect or their „dent.. 191 If the building o tructures are dismantled according to contract, bat arc found to to 1, vWatin of legal requirement. o uravorty rights f others, the Owner .hall defend the Contractor against any suit o action brought against hill, tar -ouch violation, and shall fir all fines, damages and men• lolled sgainat the Wrecking Contractor a suit of such suit o action. xrncwr eahsll hui -e event ,n lin.Id to <sa'nd sthl, nrolx„Arleo are ¢ eementa and dihe Owlnrr'ng, crelh., s.i1th .�f ciniun.—ok'urther, elnhcuOwtnerki ¢ree.�elhat the•bu buildings or structures said premi.<•. ar 'n ureJ against fire end tornado, anti that the a eat the said n uerty, which is insured, is destroyed or damaged by fire fir turned"oherarr it ,. dismantled Pram acid n rmises, the Owner will hold all o -c.rd. of such inan,ance for the benefit of the Wracking Contractor to-in. <mnify it for na Ins. of said build nags o structures. (111 flakes the ontraet. for this work elate, a definite t r diem hone. and ,--ity for , --iii lin,r n len¢lh of time far completion, the Con. —tor hall at he hell li.ble he caul —I to a fit as liquidated dame¢.. for delay yin rnmolelion, and Owner ,hall wal- all claim for dam. ... ¢alnst said Contractor for his failure to e, mulete •the a work a risen time. (121 This instrument shall contain all f the terms and conditions under which the work is to be done and .hail no[ be altered or modified except for an additicaal written Instrument newly signed by both p.rtles. (1:11 This proposal, if net accepted order the conditions herein stated, and within ten days from date hereof, ceases thereafter, subject to the option of the W'reeking Contractor, to be an offer for acceptance. ACCEPTED: .. 19 . ..I .... I .............. I ......... ... _ ....... uy: (Owner - Agent - Architect - Contractor) Owner's Purchase Order No ..... ............................... WHITE - Herbst & Sons Const. Co., Inc. Copy HERBST SONS CON T CO., INC, r- By: - %/ `� /�l�i....- ....�.... - -..... Title ......Vice.. President---.-.----- ----- -•--......--••-•------- °•- YELLOW - Owner's Copy 3C PINK - File Copy Herbst and Sono Cm t. Co., Inc. Copy STANDARD FORM PROPOSAL AND CONTRACT Herbst and Sons Const. Co., Inc. Minneapolis- 784 -8510 2299 Co. Rd. H New Brighton, Minnesota 55112 DEMOLITION CONTRACTORS N° 7545 572 -3591 ATT: Grant OWNER AGENT TO: CITY OF FRIDLEY 6431 University Ave. N. e., Fridley, Mn. 55432 ARCHITECT - ............. .. _ ---- ............... - .. .. ---- --..... CONTRACTOR Madethis -- - .. ... .........._..Ist...........__.. ............................ ............... day of ..... May.---- ------------- .. -•--- .............., 19.9.6 For ...... .. qf_s,Li p off- ramp. - Locatedat .... 60th St. ............................... - ........ . --- ............. °--- -_-- -- -- ----............ .................... in the City of ................ Eridl.ey .................... ._...... -- --- State of ._.. . . Subject to the Terms and Conditions hereinafter stipulated: (1) We agree to wreck, dismantle, and;'or uemove the above described Itructure_.... in acm rdn rtes with the occific,ticam: Utility disconnections to be made and paid for by: .................... ----- . Basement to be left clean and empty: Yes..... --------- No ...... .......... Basement to be filled with non - combustible material and dirt: Yes.... .... No ......... ._... Erection of barricade around basement hole after wrecking to be done by ............. .. ... -... .----------------------------------- Barricades furnished by contractor to remain his property and returned to him upon release by owner. Contract- ors liability on property to cease upon erection and acceptance of barricades by owner. Salvageable material to remain property of owner:.___.HERBST &. SONS CONST.... CO.-,_. INC .- ._.. .............. .........._ ........................................................... Tree Removal: ........ lt one.... - - Leveling of Lot: Permit to be paid by: - - - -- .HERBST & SONS CONST. CO. , INC. ..._.._ ----- --- - Completion time: ....... i0- _days -- after.- notice t.0.proceed weather ermittin _... ------z.... . . .... -... - - - &. ........... . ................. . Other Contract conditions; ...... Remove.. slip- off..ramp_.6.Oth..St,.,.. between.. Univer. s .i.ty... &._3rd_.Si,....reulov.� blacktip and curbing: Herbst . ... to snow fence ends off. . . . . . . --------- ----------- -- - --- - ------ ------ .... _... .. - - .............. - -- ------ -- ............ ...---•- - .. ............_...... -- -- -- --- -- --- - ---- (2) We will do this work for and in consideration of our receiving all salvage of every nature and description contained in and /or derived from said wrecking, all of which is to become our property, and in addition thereto payment to us of the sum of .... FOUR -- THOUSAND TWO HUNDRED AND NO /100--- - - - - -- 4,200.00 ..° ------------------ -•- --............*------- - - - - -- Dollars ($......... ) payment of which shall be made as follows: ................... 3. 0 ..dRYs-..afcer.•coppletion__of_- contract. (a) Persons or companies furnishing labor or materials for the improvement of real property may enforce a lien upon the im- proved land If they are not paid for their contributions, even if such parties have no direct contractual relationship with the owner; (b) Minnesota law permits the owner to withhold from his contractor so much of the contract price as may be necessary to most the demands of all other lien claimants, pay directly such liens and deduct the cost thereof from the contract price, or withhold amounts from his contractor until the expiration of 90 days from the completion of such improvement unless the contractor furnishes to the owner waivers of claims for mechanics' liens signed by persons who furnished any labor or material for the improvement and who provided the owner with timely notice. G.ntractur's Insurance Coverage: Workmen's Compensation Ind'— Workmen's Liability, statutory, Public Liability or Bodily injury, $300,000 eaah Person, $600,000 each accident. Prop <rty Damage, $150,000 each accident, $200,000 segregate. Cant 5"t- oar proposal. nypof th <r agents for the constitute wrecking oI cthe .buildings a or structucxt the herein, eckine Cunerxctor and the Owner, Architect, or General (5) Notwithstanding the reference in previous para¢rxpha u, wreck, dismantle. and rvntn.n.. unless otherwise pecificaily stated in the ipecifiatiaa, the Wrecking Cyn[ractur r rues the right to dismantle the Luil.lin¢ nr buildings Ly reducing the Ooars, walla, ceiling, and rots 4+ eat yeneL, or to .emote the building as a whole ur substantial ly as whole, ..r Lv a ,mpli.hing such wrecking, d6m,n[linr. and r moral by such °they mean as It elects. on mat This when u[his unu 000 tall�sunder bmltted �sa d [t.he Owner vo bnhieingacntn etru.mrw usrnu, etheseW reckinee Contneu,r thel.prevailingl be market I. the price for as Prey materials war salvo gn taken from the. Oremisrs by the Owner nr other. in ill, ntcr cni.0 time. mar 17) The Wrecking Contractor sh.11 not be held liable for the denoaay o re pamilbilily of any of the Architect's r Owner. plane, aPecifi.liu a in... designs for sharing, hrNCing, temporary construction, such a oPies and bridge„ nr the - r.bili,r of . o rl. of buildings, va tr walls, adjoining build• ¢s, r Part. thrrvof, high to lw Icft sanding; nor dnea rh1, nrobM.l include Inv of the aba� workv unless specifically mentioned a herein, (R) This Proposal is submitted and., the %sumption that the Plane an.] suecificltions x cumnl,w iunles, otherwise noted), and no work b to be Included that Is not sPeclficaBy entioned. Any extra work which the Wrecking Contractor is venues ted to perform shall be paid for a extra work, and will be done onl m Y an the written direetloo of the Owner or Architect or then agents. (0) If the bulldl ,, or tructurea are dismantled ae ording to contract, but are found to by i; violation of lees ranulrements or orover4 rights f u[her., the Owner :hall defend the Contractor agnlnat any suit o action brought against him for such violation, and shall pay all floes, damages and asseumcnta lesded gains[ the Wrecking Contractor .s a result of such suit or action. (10) In the event the said buildings s structures are damaged or destroyed prior to the Jute of the co e t of wrecking, $Sere the Wrecking Con - trnetor shall hove the Dorian to tine this propnswl ar a¢reemen e, wnd the Owner agrees to au h r ,n. nlli�ther, the Owner ¢sea that the buildings or slnu[urn u a:dJ preen iscs air in.0 red against fire an 1 tornado, ,a, that , the nt the s id n oerly, which i insured, is destroyed or damaged by fire r tornado before i[ in Aismnntle.l tram said orcmiaes, the Owner will hold all uroereda of such .rests; once for the benefit of the Wrecking Contractor m in. Aemnlfy it for its Ines of said bu{Idines w structure,. on;et(11) $$ninon the ran" c[ far this work it.tea a definite p r diem bonus wnd Pnxlly fur a v s cif. 1 time or length r.[ time far eo oletion, the Can - .r hall not be Contractor list bit hr. wau(red to n r at nt as liauidateA damages far deixv rein eoo;Metinn, and Owner shall walvw all 4.im for darn- failure gainer said (:ontraetnr far his failure to e,mulele the work i a given Ifine. (12) This instrument shall contain II of the terms and conditions under which the work is to be done and bell not Le altered or modified except for .n additional written Instrument newly signed by both parties. [he Wree)kIngt.Contraetor, if to be an eoa<r in, acceptance. ilt °na herein atateJ, and within ten Jxyn from Jaly hereof, ceases thereafter, subject to the option of ACCEPTED: . , . 19 ° .........(Owner Agent Architect Contracor) ... ......... Dwner's Purchase Order No ..... ............................... WHITE - Herbst & Sons Coast. Co., Inc. Copy HERBST N SONS CONS O., INC. By: - -,1 .%�.i ....f... _ Title ....... V_i.c.e...P.r.es.i.dent YELLOW - Owner's Copy PINK - File Copy 3D MEMORANDUM HOUSING L 1 REDEVELOPMENT AUTHORITY DATE: May 3, 1996 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Resolution Authorizing Execution of a Development Contract for American Excelsior Company American Excelsior is proposing to construct a 54,000 square foot building on a six acre site at the southeast comer of 81st Avenue and Main Street in TIF District #3. The proposed development contract provides tax increment financing assistance equal to 5% of the project cost, or $117,623. Ryan Construction has completed the site analysis for American Excelsior, and determined that total soil correction and site work for the project would equal approximately $462,043. Of this amount, approximately $220,000 is required for soil correction. Not only are there small pockets of poor soil around the site, but the water table is within 6" - 18" of the surface. A significant amount of fill needs to be placed on the site. The development contract is included in the packet. The amount for assistance in the development contract was $112,500. This amount was based on an earlier projection of project costs. The project costs have since been better defined, and the project cost is now estimated to be $2,352,463. The assistance is proposed to be given in the form of a grant; American Excelsior, however, must complete the building first. American Excelsior is a manufacturing company which is now located in Roseville along Highway 280. They intend to initiate work by the end of this month. American Excelsior manufactures biodegradable packing styrofoam peanuts and erosion control products. American Excelsior May 3, 1996 Page 2 RECOMMENDATION The proposed development contract and amount of assistance is within previously - approved guidelines. Staff recommends the HRA approve the attached resolution as presented, with the stipulation that the amount of assistance in the contract is changed to $117,623. BD /dw M -96 -214 UJA HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY FRIDLEY AND AMERICAN EXCELSIOR COMPANY. BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority ") as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority enter into a Contract For Private Redevelopment (the "Contract ") with American Excelsior Company (the "Redeveloper "). Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted a development program known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program ")pursuant to Minnesota Statutes, Section 469.001 et sec. 2.02. The Authority hereby finds that the Contract promotes the objectives as outlined in its Redevelopment Program. Section 3. Authorization for Execution and Delivery. 3.01. The Chairman and the Executive Director of the Authority are hereby authorized to execute and deliver the Contract when the following condition is met: . Substantial conformance of a Contract to the Contract presented to the Authority as of this date. Adopted by the Board of Commissioners of the Authority this day of , 199_. ATTEST: Executive Director 91 Chairman MAY- 3 -96 FRI 1157 Ryan► Companies 700lntelndlional C entrt• $300 Sewall !Arvnne South Miniu•apub%. MN 55402-3387, 612/336 -1200 phone h 12/33" -5552 f tv May 3, 1996 VIA FAX Barbara Dacy Community Development Director City of Fridley 6431 University Avenue NE Fridley, MN 55432 -4383 RE: AMERICAN EXCELSIOR Dear Barbara: 14 Building Lasting Relationships As a follow -up to our conversation, outlined below is the revised total project cost for the American Excelsior project. 1. Building Cost 2. Land Cost 3. Equipment Cost 4. Moving Expense TOTAL Barbara, thank you for all of your assistance successful completion of this exciting project. Sincerely, Ken . Carlson Vice President cc: Wayne Meckley, CPA Shane Walgamuth $1,860,963.00 $341,500.00 $100,000.00 $50.000.00 $2,352,463.00 We look forward to working with you on the I .Xn stied 1'atn 1 EY1LM(]LiH146QSG2DOLITD 1)r <iq11 111(11(1 Rod Fatale Develutnuont . Pronerti, -nt Medical 6,10 intS \l "usle Manaectnent KNx11 Companies � �� ,N) Inte�niational Ce�nhe 900 Second A%cwie� Senitli Minmcap,k, MN 55- 103- :3:3 -'1 Building Lasting Helatiun.shilm 01°_' 3:36 1200 pholle 612,:35 -5552 (as American Excelsior Company Fridley, MN Soil Correction Site !'York Import materials & compact for building footprint $128,700 Import materials & compact for parking & truck manuvering $ 47,300 Dewatering $ 27,500 Soil Testing $ 16,500 Total $220,000 Mass Grading $ 92,400 Paving $ 45,760 Site Concrete $ 45,288 Utilities $ 36,595 Landscaping $ 22,000 Total $242,043 FRIDLEY.XLS Design 13nilel • Real Estate De\elopuu'nt hopertN AD.t • Medical Ruiklint,e • Waste lit Casserly Molzahn & Associates, Inc. Suite 1100 Southpoint Office Center • 1650 West 82nd Street • Minneapolis, Minnesota 55431 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, CPA /Tax Manager FROM: James R. Casserly Mary E. Molzahn RE: Contract for Private Redevelopment By and Between the Housing and Redevelopment Authority In and For the City of Fridley, Minnesota and American Excelsior Company DATE: April 22, 1996 Enclosed each of you will find a draft of the above Contract and a Resolution authorizing its execution by the Housing and Redevelopment Authority. The Contract is very straightforward. Upon completion of the project and verification of soil correction costs, the Authority will provide a grant of $112,500. Please note Section 2.2 (i), which requires that the Redeveloper provide the Authority with information on the number of jobs created and the wage level of those jobs. This is a recent requirement, and the Authority is required to comply with it. Thank you for your attention to these matters, and we all look forward to the construction of your new facility in the City of Fridley. JRC /MEM /kh Encl CC: City of Fridley Attn: William Burns, City Manager w/o encl 4E MEMORANDUM HOUSING REDEVELOPMENT AUTHORITY DATE: May 3, 1996 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Contract for Engineering Services for Highway 65 and Lake Pointe Drive Intersection; SEH BACKGROUND The Indirect Source Permit was submitted to the MPCA for its approval in early April. Approval is anticipated by June 4, 1996. The City Council at its April 8, 1996 meeting passed a resolution determining that a new Environmental Assessment Worksheet was not required. Preliminary approval of the City's federal funding application for the Lake Pointe intersection has been granted. These three activities are significant steps toward construction of the intersection; however, additional steps must be taken in order to complete the improvement. PROPOSAL The next step is to update the previously - prepared 1986 intersection plans to 1996 standards. Several items will need to be addressed. MnDOT has changed some of its "standards" since 1986; a meeting with MnDOT will be necessary. Also, additional analysis has been done about the west -bound ramp from 1-694 to north -bound Highway 65. It appears as though modification of that ramp will be required such that a signalized intersection will be created with Highway 65 to help facilitate traffic from 1- 694 to northbound Highway 65. Concurrence from MnDOT will be needed. Other agency permit requirements need to be investigated, including Anoka County for Central Avenue and the DNR for filling a small portion of Moore Lake. 5 Highway 65 /1-ake Pointe Drive Intersection May 3, 1996 Page 2 A contract with SEH for engineering services is proposed. SEH was the City's consultant in 1986. SEH has developed a three phase approach as to what needs to be done to bring the intersection plans to a bid stage. The first phase or contract is proposed for HRA approval on Thursday night. The proposed contract amount for this work is $4,600. Phase I would include a meeting with MnDOT and Anoka County staff about the intersection design concept. MnDOT had originally agreed to participate in the construction costs of the intersection in 1986, but its participation in the current project must be determined. Further, changes to the 1 -694 ramp must be discussed, in addition to the typical issues about signal modifications and other traffic control issues. Anoka County has also identified, on a preliminary basis, concerns about the design of the Central Avenue /Hillwind Road connection. SEH would determine Anoka County's permit requirements and their cost sharing in the proposed plan. Phase II would include a potential modification to the intersection design on Central Avenue /Hillwind Road, depending on what is determined from the County in Phase I. The City also needs to decide if a median in Central Avenue that was proposed in 1986 should remain in the plans. In Phase III, the plans would be modified based on the changes identified in Phase I and Phase II. Also, because the funding is from the federal government, some amount of environmental assessment work may need to be completed. The work that the City recently completed complied with the state environmental requirements; however, the federal requirements may need to be met. John Flora, Public Works Director, also advises me that the original project cost in 1986 included extension of street lights on Highway 65 to the East Moore Lake Drive intersection. The City Council and HRA will need to reevaluate whether or not this should be a part of the improvement cost. In summary, there appears to be a significant amount of work that needs to be resolved with the City Council and the HRA about the details surrounding the intersection. Completing the Phase I analysis will determine what other agencies are going to require and what their proposed participation in the project would be. A tentative meeting with these agencies has been scheduled for May 15, 1996, pending HRA approval of the SEH contract. 5A Highway 65 /1-ake Pointe Drive Intersection May 3, 1996 Page 3 RECOMMENDATION Staff recommends that the HRA approve the proposal for Phase I engineering services by SEH as presented in its letter dated April 22, 1996. Additional work for Phase II and Phase III will be brought to the HRA for approval prier to initiation of work. BD /dw M -96 -217 al, =SEN April 22, 1996 Mr. John Flora Director of Public Works City of Fridley 6431 University Avenue North Fridley, Minnesota 55432 -4383 Dear John: 3535 VADNAIS CENTER DRIVE, 200 SEH CENTER, ST PAUL, MN 55110 612490-2000 800325-2055 ARCHITECTURE ENGINEERING ENVIRONMENTAL TRANSPORTATION RE: Highway 65 and Central Avenue Fridley, Minnesota SEH File No. P- FRIDL9603.00 The City of Fridley and SEH worked together in developing a system of improvements to roads in the area of Highway 65 and Central Avenue, to accommodate development of the Lake Pointe Corporate Center. Included in the development concepts were realignment of the access road to the Corporate Center and a change in the connection to West Moore Lake Drive. Hackman Avenue and Hillwind Road were realigned to provide a different intersection with Central Avenue. Additional lanes were provided on Highway 65. All the work was coordinated through a series of public meetings. Plans for the work were prepared in 1986. The plans were signed in 1987, reviewed by Mn/DOT and resubmitted for their final approval in May 1987. At that time, the project stopped. With the potential development of Lake Pointe again occurring, there is a need to realign intersections to provide additional capacity at the Highway 65 intersection. The City has applied for STP funds through the Metropolitan Council, and has received preliminary approval at the Transportation Advisory Committee. Additional approval steps are necessary, but the City would like to begin to update its plans. The plans are eight years old and a number of items are certain to change. Cost estimates need to be updated. Plans need to be checked to determine compliance with new standards- Permits and environmental analyses must be obtained or completed. Finally, there are a number of small items that were still "loose ends" in 1986, including overhead signs, extended street lights along Highway 65, and revisions beyond the City proposed project. The exact amount of work needed to bring the plans back to condition to be let in 1996 or later is not yet known. To assist the City in bringing the plans back to "letting" conditions, we are proposing a three phase approach. Phase I would involve obtaining concept agreement from Mn/DOT and Anoka County relative to the plans - In addition, permitting requirements would be reviewed in more detail. If desired, an updated programming cost estimate can also be made. Phase II would look at the local approval necessary and potential changes in development. This phase could include a revised Hillwind Road connection, modifications to the median proposed for Central Avenue or other design changes. SHORT ELLIOTT HENDRICKSON INC. MINNEAPOLIS, MN ST CLOUD, MN CHIPPEWA FALLS, WI MADISON, WI LAKE COUNTY. IN EQUAL OPPORTUNITY EMPLOYER 5C Mr. John Mora April 22, 1996 Page 2 Phase IIIa would review the plans in detail to determine what changes need to be made, based on Phase I and II. Changes could include different design concepts or updating to meet new standards. Phase Illb would be to physically update the plans and to conduct any of the environmental analyses which may be necessary. The STP funding application in Item F on page 10 provided a schedule for public involvement, environmental assessment, and plan preparation. In Phase I, we propose to meet with Mn /DOT and discuss the specific concepts behind the plans. These would include the development of a third thru -lane through the intersection in both north and southbound directions and the methods to "drop" the lane. The development of the dual left turn lanes northbound at Central Avenue and the relationship to the off -ramp from I -694 must be discussed. Changes to the signal system, modifications to signing, and other traffic control issues should also be reviewed. The standards which Mn /DOT will require to be met, which have changed since 1986, can possibly be reviewed at this time. Changes proposed for the ramps and the necessary funding and plan preparation for them need to be addressed. Finally, cost splits and the necessary state -aid project numbers can be reviewed based on the previous estimated quantities and concepts. Anoka County should also review the concepts, especially relative to the median, intersections, and "U -turn" provisions on Central Avenue. The County had a cost share in the previous plan set and could cost share in the updated plans. Permit requirements in connection with the environmental review should also be determined. Permits which were obtained have now expired and rules have changed. The environmental review can be done in coordination with other consultants working for the City. Programming or funding cost estimates would be desirable. The STP funding application had a cost estimate of $1.9 million. This did not include the ramp revisions at I -694. It may not have included adequate funding for signal changes which Mn/DOT wishes to undertake. We estimate the cost of undertaking Phase I at $4,600. We propose to do the work on an hourly fee basis since the exact extent of the work with Mn /DOT is unknown. We would not exceed the estimated cost without prior approval from the City. We can begin work on the review immediately. Because of the necessity of talking to a number of governmental agencies, we anticipate that the work will take 6 -8 weeks. As part of the review with Mn /DOT, as soon as the concept appears to be acceptable, we would provide a work program for Phase II. Working on Phase II without concept agreement from Mn /DOT might result in duplicate work, depending upon the type of additional studies or changes in concepts which Mn /DOT might desire. 5D Mr. John Flora April 22, 1996 Page 3 Would you kindly review the proposed work program. If you are in agreement, please sign both copies of this letter and return one to us for our files. We can also set a specific schedule when we receive the approval from the City. If you have any questions or need any additional information, please feel free to call me, Dave Pillatzke, or Wayne Becker at anytime. Respectfully submitted, Short Elliott Hendrickson Inc. -�� J� Glen Van Wormer, P.E. Manager, Transportation Department c: Barb Dacy, Community Development Director, City of Fridley David J. Pillatzke, P.E., SEH Wayne J. Becker, SEH Glenn G. Schreiner, P.E., SEH Accepted this day of , 1996. CITY OF FRIDLEY, MINNESOTA Mr. John Flora, City Administrator 5E MEMORANDUM HOUSING AV REDEVELOPMENT AUTHORITY DATE: May 3, 1996 TO: William Burns, Executive Director of HRA'� FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Wrap -up on 1996 Home Remodeling and Garden Fair On Saturday, April 20th the first ever Home Remodeling and Garden Fair was held at the Fridley High School. Conservatively, we estimate attendance in the range of 1,200 to 1,600. An informal survey of the general public seemed to indicate that it was a good show and was worthwhile. Currently we are surveying the 60 vendors who had booths at the event and so far we've received high marks. On April 29th we held an in -house meeting with the Community Development Department staff to discuss what went right and what didn't. The meeting produced more than 30 helpful comments which we hope to incorporate into next year's event. A complete summary of the vendor survey will be provided at the June meeting. As a final note, we should also mention that a letter has been sent to Home Depot thanking them for their support and involvement. GF/ M -96 -211 lei