HRA 08/08/1996 - 6267HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, AUGUST 8, 1996
7:30 P.M.
BARBARA DACY
COMMUNITY DEVELOPMENT DIRECTOR
CITY OF FRIDLEY
A G E N D A
HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, AUGUST 8, 1996 7:30 P.M.
--------------------------------------------
LOCATION: Council Chambers, Fridley Municipal Center
CALL TO ORDER
ROLL CALL
APPROVAL OF MINUTES: July 11, 1996
CONSENT AGENDA:
Revenueand Expenses . . . . . . . . . . . . . . . . 1 - 1D
Resolution Authorizing Execution of
Development Contract with Wallboard, Inc. . . . . . 2 - 2A
House Plan Designs for 5981 - 3rd Street . . . . . . 3 - 3C
ACTION ITEMS•
Proposals to Rehabilitate 6431 Jackson . . 4 - 4V
Street N.E.
TIF Request for Noah's Ark Senior Housing, . . . . . 5 - 5P
Inc.
INFORMATION ITEMS:
Review Performance of MEPC under Contract . 6 - 6B
for Exclusive Negotiations
Status of Housing Program . . . . . . . . . . . . . 7 - 7B
Review Proposed Strategy to Accomplish . . . . . 8 - 8F
Multiple Family Housing Goal
OTHER BUSINESS•
ADJOURNMENT
HRA RESOLUTION NO. 17 - 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
PATRICIA G. PARASCHUR
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 Patricia G. Paraschuk (the
"Redeveloper ").
Section 2. Findings.
2.01. The Authority hereby finds that it has approved
and adopted a development program known as the
Modified Redevelopment Plan for its Redevelopment
Project No. 1 (the "Redevelopment Program ")
pursuant to Minnesota Statutes, Section 469.001 et
sea.
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.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY THIS 8TH DAY OF AUGUST, 1996.
LAWRENCE R. COMMERS - CHAIRMAN
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING
JULY 11, 1996
CALL TO ORDER:
Chairperson Commers called the July 11, 1996, Housing and
Redevelopment Authority meeting to order at 7:38 p.m.
ROLL CALL:
Members Present: Larry Commers, Virginia Schnabel, Jim
McFarland, John Meyer, Duane Prairie
Members Absent: None
Others Present: William Burns, Executive Director
Barbara Dacy, Community Development Director
Jim Casserly, Financial Consultant
Grant Fernelius, Housing Coordinator
Craig Ellestad, Accountant
Robert Van Nelson, Rehab Coordinator
Francis & Pat Amman, 6435 Jackson Street
Curt Curry, 6535 Oakley Drive
Edward J. Johnson, 9793 - 64th Avenue North,
Maple Grove, Minnesota
Daniel P. Johnson, 6381 Louisiana Ave. North,
Brooklyn Park, Minnesota
Debbie & Guy Rogers, 785 Bennett Drive
Peter Eisenzimmer, 6535 Oakley Drive
APPROVAL OF JUNE 13, 1996, HOUSING AND REDEVELOPMENT AUTHORITY
MEETING•
MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the
June 13, 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 distributed copies of additional expenses needing
approval as outlined in his memo dated July 11, 1996.
2. RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO. 1 AND THE TAX INCREMENT FINANCING
PLANS FOR TIF DISTRICTS 41 - #3 #6 V. AND #9 - #14
HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 11, 1996 PAGE 2
3. APPROVAL OF DEVELOPMENT CONTRACT AND INDEMNIFICATION
AGREEMENT WITH ACCAP; 380 - 57TH PLACE N.E.
4. APPROVAL OF EXTERIOR ARCHITECTURAL PLANS FOR FRIDLEY PLAZA
OFFICE BUILDING
5. ACQUISITION OF 5833 - 2 1/2 STREET N.E.
Ms. Dacy requested item #2 be removed from the Consent Agenda and
become item #12.
Mr. Meyer requested item #5 be removed from the Consent Agenda.
He has questions regarding that item.
Mr. Meyer stated he also has questions regarding #4 and asked if
those plans had been submitted to the Planning Commission.
Ms. Dacy stated no. The plans associated with the permits are
proposed to be submitted to staff. These are not required to be
submitted to the Planning Commission. If the HRA wishes to have
the Planning Commission review, staff can do so.
Mr. Meyer requested #4 be removed from the Consent Agenda.
MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve
Consent Agenda items #1 with -the additional expenditures as
presented and #3.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
ACTION ITEMS•
6. CONSIDER OPTIONS FOR 6431 JACKSON STREET N.E.
Mr. Fernelius stated Mr. Van Nelson would provide information
about the condition of the property, talk about the issues and
review the recommendations. The property was a vacant HUD home.
The previous owner abandoned the property after having started
significant remodeling work. The home was foreclosed, went back
to HUD and was placed for sale in March. When staff became aware
of the property, they became interested for the scattered site
acquisition program. Staff did not anticipate the interest from
the private market. Staff's concern was that a buyer might run
out of money and not be able to do the work or that an investor
would put in minimal improvements and end up having the same
situation. At the April HRA meeting, the HRA approved the
acquisition. Mr. Van Nelson evaluated the property and has
worked with several contractors.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 11, 1996 PAGE 3
Mr. Van Nelson showed slides of the exterior and interior of the
property. The home has three levels with 1600 square feet and
500 square feet of finished basement. A partially completed
porch is located in the front. There is also vegetation on the
property. Along the back, there are two additions which were put
on at different times. About one -half of the windows have been
replaced. The attached two -car garage also has a single garage
door opening toward the back. Inside, the plumbing and heating
systems need to be replaced. These have been damaged by
freezing. The electrical system is incomplete. The roof needs
to be completed as does the siding, soffits and fascia along with
interior remodelling.
Mr. Van Nelson looked at a minimal rehab for the home which would
update the mechanical systems and complete the existing
remodeling projects. A more extensive rehab would be trying to
come up with something similar to replacement housing. This
would include rebuilding the front porch, removing the addition
on the back and putting in French doors, removing and rebuilding
damaged eaves, updating the kitchen, combining two smaller
bedrooms to create a master bedroom and adding a bedroom on the
lower level, adding a half -bath off the living space, and
eliminating one set of steps.
Mr. Van Nelson contacted nine contractors to get estimates for
both approaches. Only two responded with estimates for both a
minimal rehab and more extensive rehab as follows:
Timber Craft $45,500 $63,500
New Leaf Builders $56,000 $83,000
Mr. Fernelius stated the question is whether it is feasible to
rehab the property or demolish the property. The neighborhood is
concerned about the property and there are buyers interested in
fixing the property. If pursuing rehab, does the HRA want to do
the work or have it done by the private sector? How will the
property be sold? How will a buyer be selected? How much rehab
is necessary to make the property desirable? What requirements
should be placed on the buyer?
Mr. Fernelius stated staff's recommendation, based on the cost
estimates along with the interest from prospective buyers, is
that rehab is feasible. He recommended establishing the scope of
work along with a list of improvements. Bidders would have 30
days to submit a proposal. The price of the property would be
fixed. The HRA could recoup their costs. The bidder would have
to have the financial capability, experience in similar projects
and references. Staff recommends going with the highest, most
responsible bidder and then entering into a development
agreement, obtaining a letter of credit, the HRA would approve
all final plans and specifications before work would begin.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 11, 1996 PAGE 4
Mr. Fernelius stated this is a long recommendation but he thought
it covers all of the issues and provides assurances to the
neighborhood that something will be done. He thought it was a
good approach to take.
Mr. Commers stated we have in the past allowed individuals to
purchase a site as long as they can find a contractor to bring in
satisfactory plans.
Mr. Meyer asked if this meant a private person would not do the
work themselves.
Mr. Fernelius stated they are looking for a buyer /builder team.
He would recommend going ahead with the rehab. At the August
meeting, the HRA could set a minimum standard and look at bids in
September.
Ms. Amman stated she lived directly to the north of this property
and has lived there since 1977. This is not a new issue to this
home. She has seen people purchase the home with dreams and
leave with those dreams shattered. Each person has their own
idea of what they want to do with the house. The house is a
monstrosity. The pictures give it justice. The house actually
looks worse than the photos. The heating would have to be
redone. Regarding the figures, the City- purchased- the property
for $40,000. If in fact one of these two participating companies
were given the opportunity to do the work, is that in addition to
the $40,000?
Mr. Fernelius stated yes.
Ms. Amman stated this is a wonderful neighborhood. However, if
someone has $100,000 to $120,000, would they want to purchase a
house that meets minimum standards when they can buy new for the
same price? A house of that size takes a considerable amount of
money to maintain. Will the buyer be able to continue to
maintain that home? Most of the people in that neighborhood are
long time residents and there are certain standards we would like
to keep in the neighborhood. Several permits were issued where
the work was not completed. It is important that there are
requirements in place that, if the contractor does not meet the
requirements, there is a way to combat that.
Ms. Amman presented a letter from Pat and Jane Wisniewski who
live adjacent to the back of the property and expresses their
preference that the structure be demolished and another house be
constructed more suitable to the neighborhood.
MOTION by Mr. Meyer, seconded by Ms. Schnabel, to receive the
letter £rom Pat and Jane Wisniewski dated July 10, 1996, into the
public record.
HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 11 1996 PAGE 5
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
Ms. Amman stated, as a neighbor to the north, that would be her
hope as well. This home has holes in the roof and paper flies
into her yard. The outside yard looks terrible. Mowing is a
minimum. The trees need to be trimmed. She did weed killing in
that yard to help keep her yard in the condition that she likes.
She would like to have the HRA consider demolition of the
property and build a home that better fits into the neighborhood.
Most of the homes.are three bedroom ramblers.
Mr. Eisenzimmer stated the house was not in that bad of shape.
He has been through the house. The heating system could be
replaced. There are a lot of modifications that could be changed
to make it a comfortable and nice home. There is a lot of work
that needs to be done. His home also was in bad shape but he has
done much of the work and it is now nice. He would like to do
the work and bring the home up to standard. He thought the home
should be remodelled and sold to someone in the City. This is
something that needs to be looked at. What does the City expect
to be done with the home? As far as rehabbing the home, there
would be help. HUD had the price at $45,000. We are now saying
the figure is much higher. He did not know how the City got
involved. He thought the basic structure was sound and did not
think the house should be torn down. The garage is new with good
lumber. It should be fixed up. He understands the neighbors
have a problem with it, but they have never had the right person
in it. There are people who would like to have a good home.
Mr. Commers asked if Mr. Eisenzimmer had an idea of what the
remodelling would cost.
Mr. Eisenzimmer stated he and his family would do the work
themselves but it would be according to the code. There is a
plumber, electrician, etc., in the family.
Ms. Rogers stated she lives across the street. The pictures are
not justified. The house is horrible. There are no pictures of
the upstairs bath. The main floor bath is terrible. She pays
taxes and to look at stuff like that is sickening. The house is
not kept up. The last owner put the garage up in one day and
laughed about what he did. Safety is also a concern. She would
prefer to see the house town down.
Mr. Amman stated the house has not been completed. There was new
carpet and wallpaper in the home when the new owner came. The
last owner took it out and it is now gone. The house is in a
state of disrepair because the last person did not care. The
house has a new garage, but there is no siding to protect the
undersiding. There has not been siding or a roof for two years.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 11, 1996 PAGE 6
There was dry rot in the inside walls and the last owner put up
dry wall. One must go deeper into the house than just these
pictures. The house has had rain and snow for the last year
coming in with damage to the wood. He did not think it was
feasible to rehab the house. He would vote to demolish it. He
did not think it was a sound building.
Mr. Johnson stated he has gone through the house twice and is
interested in buying it. Someone had said there was no interest.
There were 18 signatures of people looking at the home. He has
the backing, financing and could close on the house in 30 days.
He has a history of doing such projects. He built his own home
in Maple Grove. He is a laborer, so he does not have a large
income. He can understand the neighbors concerns. He has
purchased two HUD homes and those neighbors felt the same. When
looking into this house, he looked into the roofing, siding,
fascia, heating, plumbing, adding another bath, and upgrading the
electrical. In order to that, you need to go down to the bare
walls. At that point, the City needs,to inspect the home to see
what is rotted and what needs to be replaced. The doors need
replacing as do the floor coverings. The property needs
landscaping. One of the two houses he did in Crystal was
scheduled for demolition. He purchased the property in 27 days,
remodelled the home and sold it after completion for $65,000.
This house has too much square footage to demolish. The house
now looks terrible. He does not think it would cost $80,000 to
do the work. He wants to buy the home, do the work, quit claim
deed to property to his brother who is engaged to get married.
He has numbers on what it would cost, and these numbers are
different from those presented here.
Ms. Amman stated this will be discussed again at the August
meeting. How long before something will be done? They want it
completed so the neighborhood does not have to go another summer
like this.
Mr. Fernelius stated he would hope they would see work being done
this fall. If we get to September when the proposals come back
and nothing is satisfactory to the neighborhood or the HRA, we
could then say demolition is an option. If the private sector
cannot meet the standards, then he thought they could take the
house down. Fall is the time schedule for completion.
Mr. Johnson asked if the HRA would be looking at recommendations
in August.
Mr. Fernelius stated staff will bring recommendations back in
August to set the guidelines for the contractors and look at
selecting a particular bidder.
HOUSING & REDEVELOPMENT AUTHORITY MTG. , JULY 11 1996 PAGE 7
Mr. Johnson stated this looks like it would be October or
November before ownership. In that case, work would be done in
the spring.
Mr. Commers stated the HRA looks at purchasing the property in
order to gain some control and provide some reasonable standards.
There are some timing issues that are not as favorable as one
would like to see but the concerns are being addressed.
Ms. Rogers asked if the HRA had toured the house. The steps feel
like they are going to fall. The bath is gutted upstairs. The
mailman had stated water was coming out of the front door. She
would like to have the HRA see it so they know what the neighbors
have had to live with.
Ms. Amman asked if anything could be done to speed up the
process.
Mr. Eisenzimmer stated the house can look bad but the repairs are
minor and can be done, but it can be done for less that what has
been quoted.
Mr. Johnson asked if the house was tagged for occupancy now. The
HRA has control over the house now and could sell it for the bid
price. Someone who spends $45,000 will want to do something to
have a place to live.
Mr. Commers stated the HRA does not want to have someone get into
the home, not be able to complete the work, and leave. Staff is
saying they want to set some criteria for the buyer and to have
some control in order to get this done the way it should be done.
We don't want to sacrifice quality for speed and have the same
problem in another year.
Ms. Amman asked, if the permits are issued, how do the residents
know the standards will be held.
Mr. Commers stated enforcement of permits is not within their
purview.
Mr. Burns asked if the staff felt the specifications for a
significant rehab are definite enough so that we are prepared to
go out for proposal in the next few weeks. The answer from staff
is yes, they feel sure about the criteria. If the HRA chooses to
go with the rehab option, the HRA may also want to direct staff
to prepare an RFP built around those standards. That could save
some time and potentially get the construction work done this
year.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 11, 1996 PAGE 8
Mr. Commers asked if it was realistic that someone is going to
put in $70,000 or a similar amount into rehab in addition to the
purchase price of the property.
Mr. Meyer asked, if we did go out, solicit proposals and get them
back, the HRA still retains the option to demolish the property.
Mr. Burns stated yes. There should also be a buyer beware
element. He did not think a buyer would respond to the
specifications and commit to a letter of credit without feeling
sure they could sell the property in that neighborhood.
Mr. Meyer asked, when you give a request for proposal and list
the items inside the house, is someone going to put together a
list of what needs to be corrected.
Mr. Burns stated that work is done.
Mr. Meyer stated, in your proposal, which of the two methods are
you talking about in terms of a minimal rehab or a significant
remodelling.
Mr. Burns stated staff would be prepared to recommend a
substantial rehab.
Ms. Schnabel stated it sounds like you would have to do that in
order to bring the house up to code. They are talking about
heating, plumbing, electrical, siding, roof, water damage, etc.
This sounds like a significant rehab. She did not know if they
could get by with anything less.
Mr. Meyer stated he thought the initial rehab would take care of
that. It is the addition of the half bath, changing the eaves,
combining two bedrooms into one, etc. We have to decide whether
it is our job to worry about those things. He would recommend
doing what Mr. Burns is suggesting but to do the minimum rehab.
Mr. Burns stated, in that event, staff would propose the minimum
rehab but base the competition on the total dollar value and
nature of the rehab in light of the proposals. It could be
somewhere in between or it could be substantial. In evaluating
the responses to the proposal, the party submitting the highest
quality rehab plan would be the person staff would recommend.
Ms. Dacy stated someone had asked what is different in this case
if the buyer does not comply with the standards of the building
permits. This is different because the HRA owns the lot. We are
recommending a letter of credit.be submitted equal to the value
of the improvements being made. If the person defaults, we can
collect on the letter of credit and have the work done ourselves.
HOUSING & REDEVELOPMENT AUTHORITY MTG. , JULY 11 1996 PAGE 9
This is our control, and the goal is to maintain and improve the
value of the neighborhood and to insure a quick turnaround time.
No further comments from the public were received.
MOTION by Mr. McFarland, seconded by Ms. Schnabel, to recommend
staff prepare an RFP for rehab of the property based on criteria
to be established by staff.
Mr. Meyer stated his understanding is the RFP will be based on a
minimum rehab.
Mr. Commers stated the RFP should contain an explanation that any
additions to those minimum standards would enhance who may
receive the bid.
Mr. Burns stated it is staff's intent that, if we do not receive
satisfactory responses, we have the option to revisit the issue
and demolish the property.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
Ms. Dacy stated staff would start right away to hire a contractor
to do some work on the property to improve the interim
appearance.
Mr. Fernelius stated the criteria will go out in the next few
weeks. The goals is to look at it in August.
Mr. Johnson stated he had one additional comment. Regardless of
who is awarded the bid, there is no reason this house could not
have a family in there and have this be a beautiful home by
Christmas.
7. APPROVAL OF HOUSING ACTION PLAN
Mr. Commers stated a copy of the Housing Action Plan was received
in the agenda packet. The plan is a recommendation to establish
criteria and guidelines which will have to be further refined
before being incorporated into the Comprehensive Plan. Staff is
asking for general approval of the information which will then be
sent on to the City Council.
Ms. Dacy stated the Comprehensive Planning process has not yet
been established. Staff will advise the HRA at the appropriate
time.
MOTION by Ms. Schnabel, seconded by Mr. McFarland, to recommend
approval of the Housing Action Plan and to forward the Plan to
the City Council.
HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 11, 1996 PAGE 10
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
8. RESOLUTION AUTHORIZING AN HRA LEVY
9. RESOLUTION AUTHORIZING FUNDING FOR THE REVOLVING LOAN
PROGRAM
Mr. Commers suggested items #8 and #9 be discussed
simultaneously. These two items go hand -in -hand. As he
understands it, the money the City Council was to provide for the
Southwest Quadrant as proposed would be used for the revolving
housing action plan and that would then be repaid by the levy.
If we do not have a levy, then what happens?
Mr. Casserly distributed copies of a Resolution Adopting 1996 Tax
Levies Collectible in 1997. The levy can be used for any HRA
authorized activities. One of the programs adopted is the
revolving loan program. The levy provides a revenue stream
available to the HRA which will be used to repay part of the loan
from the City. If the City were to loan the HRA $1.5 million at
5% and the HRA were to make 5% loans, all of the loan repayments
would go to repay the City loan. The levy allows the HRA to
repay the City and fund the revolving loan program.
Ms. Schnabel stated the loan from the City will cost the HRA
about $75,000 per year in interest. When looking at the levy, it
will not generate enough income to cover the interest on the loan
and the loan payment.
Mr. Casserly stated the loan will be amortized like a mortgage so
the payment will remain the same. The levy may not cover the
interest the first year but should in subsequent years.
Ms. Schnabel asked how much would the $1.5 million loan cost the
HRA ultimately.
Mr. Ellestad stated theoretically it should cost the HRA nothing.
Mr. Commers asked how they arrived at the interest rate.
Mr. Burns stated this is close to the interest rate that the City
is getting in grants and loans for other projects. It seems to
be a fair rate of return for the City.
Mr. Casserly stated he thought this was correct. In discussions
with Mr. Pribyl, he does get a bit better return on investments.
5% represents a poorer return than what they would like to have
but with less cost then if we had to issue bonds.
HOUSING & REDEVELOPMENT AUTHORITY MTG. , JULY 11 1996 PAGE 11
Mr. Casserly distributed copies of a Resolution Authorizing the
Funding of the Fridley Revolving Loan Program; Providing for the
Delegation of Certain Powers and Duties; Authorizing the
Execution of Documents. Attached to this resolution is a
schedule which provides an explanation of the cash flow. They
figured an average loan of $12,000 for 12 years at 5 %. He
reviewed the information.
Mr. Commers stated, assuming a $12,000 loan throughout the
period, in 10 years they will not be worth as much. We will have
to increase the loans or do less. He did not know if the number
of loans projected in the last few years was realistic. If they
did not have a levy, would it be relevant to see how that affects
our current financial status.
Mr. Casserly stated, without the levy, it is difficult to do this
type of program unless you take revenues out of your existing
cash flow.
Mr. Commers stated he is wondering what that would do in terms of
what we are doing and are able to do.
Mr. Casserly stated the HRA now has an opportunity to provide $3
million to the revenue stream. If you do not do this, it would
be absorbed out of the current budget at $150,000 per year. He
thought the HRA would see increasing demands on the fund
balances.
Mr. McFarland asked why not take $1.5 million from their existing
revenues to finance the program.
Mr. Ellestad stated the HRA has a $6 million cumulative balance.
Another way to look at it is to invest by giving out loans to be
paid back at 5 %. Then figure the costs including a 2%
origination fee, a 4% handling and maintenance fee plus a 2%
reserve for bad debts. This is approximately 8.5% times $150,000
which would be the true operating expense for that program. That
would become another column they could add which would give the
operating cost the program.
Mr. Commers asked if the HRA would be better off doing that.
Therefore, 8.5% plus the 5% we are paying to the City would be
the true cost of operating the program. Why borrow the money
from the City?
Mr. Casserly stated one reason is to establish a fund in order to
do the program. He thought the investment return would be better
than 5 %.
Mr. Ellestad stated the HRA investments are now making
approximately 6 %. If the HRA is going to borrow from the City at
HOUSING & REDEVELOPMENT AUTHORITY MTG., JULY 11, 1996 PAGE 12
5% and then lending the money at 5 %, it is basically a wash. The
HRA will not be using all that money at once. It may be possible
to invest some of it and gain some revenue.
Mr. McFarland stated the HRA will be generating income from the
loans and money from the tax levy which is building up the fund.
If you do not make a commitment up front to capitalize the HRA
monies, the fund will not grow.
Mr. Commers stated he thought, if they did not have the revenue,
the HRA would have to capitalize it themselves. His concern is
that the fund would grow less than projected, there may be a
shortfall in 7 -8 years, and the HRA is going to be limited in
some of things they might want to do.
Mr. Casserly stated part of the purpose in approaching the matter
in this way was that so often the projects that come to the HRA
are going to be redevelopment projects. The HRA will do only
some because staff and the resources can only handle so many. In
the near future, the HRA will be doing projects that are net
losers. They will provide some new revenue but are pure
redevelopment. This type of program tried to become self -
financing in the future. If you treat -each revolving loan fund
and provide that as a separate source of funds, you can continue
with loans. That is what you will try to do in the future. The
HRA will do a few-grants. But loans are going to be the major
housing programs. This tries to address that and tries to treat
them as separate programs.
Mr. Commers stated he was trying to figure out how badly they
need the levy. What does it add to this?
Mr. Casserly stated this essentially gives the HRA $1.5 million
up front and capitalizes the source for the program.
Mr. Fernelius asked if the tax levy really builds up a balance at
the end.
Mr. Casserly stated that is where the effect is seen. The HRA
has then paid off the loan to the City and now has a levy which
can be invested into programs without having to repay. It is
very advantageous to have the levy particularly if you do not
have to make repayments. It is to your advantage to borrow money
to fund a program up front. In the event the program is not
sound or you do not need the levy, you do not renew. This can be
discontinued at any time.
Mr. McFarland stated, if we are going to invest in our housing
stock, that should stabilize the tax base which will offset that
percentage over time. It should be returning to the tax payer by
stabilizing the tax base.
HOUSING & REDEVELOPMENT AUTHORITY MTG. , JULY 11 1996 PAGE 13
Mr. Fernelius stated there is also the issue of encouraging other
improvements to be made outside of our program. There are other
positive effects for other owners. For every $1 we are
investing, there may be $2 or $3 from the private sector being
invested by owners who see people going through our program and
willing to invest in their property. There are other positive
effects it creates for other owners.
Ms. Schnabel stated, if the improvements being made are bringing
things up to code, we will not see a big increase in taxes.
Mr. McFarland stated, if your housing stock is going to stay with
the times, they will have to update kitchens and baths or you
will have some deterioration. Enhancing the roof does not
enhance the house.
Mr. Commers asked if the members wanted to authorize the levy.
Mr. Casserly stated he would recommend providing the maximum levy
allowed by statute. In 1994, there could be two levies. In
1994, the HRA could have generated $156,000. In 1996, it could
be slightly more than $150,000. Because these levies are such
small percentages, or .0144 %, for the first year he would
recommend the maximum allowed by statute.
MOTION by Mr. McFarland, seconded by Ms. Schnabel, to approve a
Resolution Adopting 1996 Tax Levies Collectible in 1997.
Mr. Meyer stated he would vote no because he feels this is an
inappropriate tax increase for the City's taxpayers.
UPON A VOICE VOTE, WITH MR. COMMERS, MS. SCHNABEL AND MR.
MCFARLAND VOTING AYE, AND MR. MEYER AND MR. PRAIRIE VOTING NAY,
CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED BY A MAJORITY
VOTE.
MOTION by Ms. Schnabel, seconded by Mr. McFarland, to approve a
Resolution Authorizing the Funding of the Fridley Revolving Loan
Program; Providing for the Delegation of Certain Powers.and
Duties; Authorizing the Execution of Documents.
UPON A VOICE VOTE, WITH MR. COMMERS, MS. SCHNABEL AND MR.
MCFARLAND VOTING AYE, AND MR. MEYER AND MR. PRAIRIE VOTING NAY,
CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED BY A MAJORITY
VOTE.
10. RESOLUTION AUTHORIZING ADDITIONAL EXPENDITURES FOR THE
MISSISSIPPI STREET/3RD STREET INTERSECTION PROJECT
Ms. Dacy stated the City opened bids for the intersection project
and the low bid was $212,616.20. This is a difference of
HOUSING & REDEVELOPMENT AUTHORITY MTG. , JULY 11 1996 PAGE 14
approximately $50,000 from our estimates. That overage does not
include inspection costs which will be an additional $14,883.
The total overage is approximately $65,000.
Ms. Dacy talked to County staff who will make a recommendation
that the County Board pick up an additional $20,000 out of that
$65,000. Our position to the County was that the amount should
be $34,000. The County held firm that their additional
requirements which were a part of the overage were worth $20,000
and that is what they would recommend to the County Board.
Ms. Dacy stated she called the Holly Center owner. They left a
message that they were willing to be assessed for an additional
$15,000. They are not happy about it but they want to get the
project done.
Ms. Dacy stated she had not heard from Mr. Stutz at Rottlund.
The best case scenario is that, out of the total overage, this
leaves $15,000 for the HRA. The worst case scenario is if the
County Board says no. The Holly Center owner will only agree to
the additional assessments if the County puts in and, if Rottlund
says no, the cost to the HRA would be $65,000.
Ms. Dacy stated staff talked about rebidding and feel that is a
risk. Staff talked about waiting until next spring or next fall.
Without the County overage, waiting until spring to do the
project would probably result in a higher bid. In the meantime,
we have postponed the project and improvements to establish an
entrance into the project. The best way to approach this was to
try to get the partners to cost share. The last resort is to
have the HRA agree to pay for the costs.
Mr. Prairie stated the bids were close. When the bidding is that
close, they are usually good bids.
Ms. Dacy stated staff recommends approval of the resolution
subject to staff working with the Holly Center, the County and
Rottlund to minimize the costs.
MOTION by Mr. Meyer, seconded by Mr. Prairie, to recommend
approval of a Resolution Authorizing an Additional Reimbursement
to the City of Fridley for the Mississippi Street /3rd Street
Intersection construction Project, subject to staff working with
the Holly Center, the County and Rottlund to minimize the costs.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
INFORMATION ITEMS:
11. STATUS OF TIF ASSISTANCE FOR WALLBOARD, INC.
HOUSING & REDEVELOPMENT AUTHORITY MTG. , JULY 11 1996 PAGE 15
Ms. Dacy stated staff's recommendation on the loan is that we
proceed to bring back a development contract for $85,000 at the
August meeting. Staff wants to make sure that the HRA is
approving the project area as well.
MOTION by Ms. Schnabel, seconded by Mr. Prairie, to recommend
approval of the concept that a second mortgage /loan be executed
between the HRA and Wallboard, Inc., for $85,000 for land and
building costs at 5% interest for 10 years.
UPON A VOICE VOTE, WITH MR. COMMERS, MS. SCHNABEL, MR. MCFARLAND
AND MR. MEYER VOTING AYE AND MR. MCFARLAND ABSTAINING,
CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED.
12. RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO. 1 AND THE TAX INCREMENT FINANCING
PLANS FOR TIF DISTRICTS #1 - #3 #6 #7 AND #9 - #14
MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve a
Resolution Modifying the Redevelopment Plan for Redevelopment
Project No. 1 and the Tax Increment Financing Plans for Tax
Increment Financing Districts Nos. 1 - 3, 6, 7, and 9 - 14.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
13. APPROVAL OF EXTERIOR ARCHITECTURAL PLANS FOR FRIDLEY PLAZA
OFFICE BUILDING
Ms. Dacy stated, regarding review of the project by the Planning
Commission, she feels it is minor and deals more with the HRA.
There is a procedural issue in that there are no other scheduled
items for the Planning Commission until August so there may be a
timing issue as well. The plans deal with the canopy which is
right in front of the building.
Mr. Meyer stated he thought this was a larger structure and would
be more prominent.
MOTION by Mr. Prairie, seconded by Mr. Prairie, to approval of
the exterior architectural plans for the Fridley Plaza Office
Building.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
14. ACQUISITION OF 5833 - 2 1/2 STREET N.E.
Mr. Meyer stated, on that street, the entire block is composed of
homes which are very similar to this one. The homes are very
small and built on very small lots. Some are okay and others are
HOUSING & REDEVELOPMENT AUTHORITY MTG. , JULY 11 1996 PAGE 16
not in good shape. We are singling out this one. He did not
know how one could spend $25,000 on a foundation for such a small
home. If the house is taken out of there, he would be surprised
if a neighbor would purchase the lot. Is this property on a list
of houses throughout the City that are on the scattered site
program?
Mr. Fernelius stated this property, along with 10 others in Hyde
Park, are at the top of the list. Many of the houses on that
block are in poor condition. This one is probably among the
worst. We are not in a position to continue acquisitions in this
area. This is taking out what we perceive to be the worst.
Mr. Commers asked how this property came up at this time.
Mr. Fernelius stated the owner had applied for a loan. In
combination with that loan process, we were also doing a
condition study through Hyde Park. We also identified this
property as one of the worst. Rather than invest money in the
property for repairs, we approached the owner about the
possibility of selling. The owner is willing to sell.
MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the
acquisition of 5833 - 2 1/2 Street N.E. for $46,700.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
OTHER BUSINESS•
15. UPDATE ON THE HOUSING REPORT
Mr. Fernelius stated the program is extremely successful.
Ms. Dacy stated staff is trying to get Fridley Focus coverage of
the 100th loan.
Mr. Burns stated that Hyde Park has a neighborhood newsletter. A
copy of the newsletter was shown to the members.
16. UPDATE ON SOUTHWEST QUADRANT
Mr. Prairie asked what progress had been made on the Southwest
Quadrant.
Ms. Dacy stated Rottlund is building one model of each type of
housing. The plan is to have these completed about September or
October. Rottlund has a waiting list already for units to be
completed.
ADJOURN1MENT
HOUSING .& REDEVELOPMENT AUTHORITY MTG. , JULY 11 1996 PAGE 17
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to adjourn the
meeting.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED AND THE JULY 11, 1996, HOUSING AND
REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 10:15 P.M.
Respectfully submitted,
�- �m )nm �� 6ww 114itl
Lavonn Cooper
Recording Secretary
TO: FRIDLEY H.R.A
FROM: CITY OF FRIDLEY
RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES
JULY 1996
JULY 1996
Account #'s for
Account #'s for
CR
HRA's Use
City's Use
Code
ADMINISTRATIVE BILLING:
HA
NYSTROM PUBLISHING — SUMMER NEWSLETTER
262- 0000 -430 -4335
ADMINISTRATIVE PERSONAL SERVICES
19,800.75
101- 0000 -341 -1200
H1
ADMINISTRATIVE OVERHEAD
275.85
101- 0000 - 336 -3000
HA
COMPUTER OVERHEAD
200.25
101- 0000 - 336 -3000
HA
(For Micro & Mini computers)
CONTROL GRPAHICS — SUMMER NEWSLETTER
460 -0000- 430 - 4335
639.00
TOTAL ADMINISTRATIVE BILLING:
460- 0000 -430 -4107 20.276.85
CITY OF FRIDLEY — JAN thru JUNE INS ALLOC
460- 0000 - 430 -4336
OPERATING EXPENSES:
USPS —POSTAGE
262- 0000 - 430 - 4332
26.15
236 - 0000 - 336 -3000
HA
NYSTROM PUBLISHING — SUMMER NEWSLETTER
262- 0000 -430 -4335
2,975.27
236- 0000 -336 -3000
HA
USPS — POSTAGE
460- 0000 -430 -4332
51.11
236- 0000 -336 -3000
HA
US WEST — PHONE SERVICE
460- 0000 - 430 -4332
14.44
236- 0000 - 336 -3000
HA
CONTROL GRPAHICS — SUMMER NEWSLETTER
460 -0000- 430 - 4335
639.00
236 -0000 -336 -3000
HA
CITY OF FRIDLEY — JAN thru JUNE INS ALLOC
460- 0000 - 430 -4336
9,841.00
236- 0000 -336 -3000
HA
AMERICAN EXPRESS — LUNCH
460- 0000 - 430 -4337
44.45
236- 0000 - 336 -3000
HA
TOTAL OPERATING
EXPENSES:
13.591.42
BENEFITS EXPENSES:
CITY OF FRIDLEY — HEALTH INS
CITY OF FRIDLEY — DENTAL INS
CITY OF FRIDLEY — LIFE INS
262 -0000- 219 -1001
262 -0000- 219 -1100
262-0000-219-1200
TOTAL BENEFITS EXPENSES
TOTAL EXPENDITURES — JULY 1996
File: \123DATA\HRA \T1F\9661LL.wk1 Details
0.00 236 -0000- 219 -1001
0.00 236 -0000- 219 -1100
3.50 236 - 0000 - 219 -1200
3.50
$33,871:77
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3 lr
Date: August 8, 1996
To: HRA Commission Members
From: Craig Ellestad, Accountant
Subject: Additional Expenses Needing Approval
VENDOR
DESCRIPTION
AMOUNT
Appraisal Engineering Bureau
Appraisal — 5857 Main St
250.00
Appraisal Engineering Bureau
Appraisal — 5861 Main St
250.00
Appraisal Engineering Bureau
Appraisal — 5925 Main St
250.00
Appraisal Engineering Bureau
Appraisal — 5800 2nd St
250.00
Appraisal Engineering Bureau
Appraisal — 5813 2 1/2 St
250.00
Advantage Electic
554 Lafayette St
1,148.00
BCL Appraisals
Work on Sylvan Oaks Apt
1,539.00
Casserly Law Office
July Legal
4 912.00
Innovative Irrigation
Lake Pointe Maintenance
3,035.11
Majer One Hour Photo
Film Processing
10.12
Robin Mysliwiec
Roof — Final Payment, 554 Lafayette
9,125.00
Rapid Printing
Housing Action Plan
95.05
SEH
Plans HWY 65 & Central Ave
918.25
Total $22,032.53
File: \123DATA \HRA \M 1 SC \EXPENS E.wk 1
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: August 2, 1996
TO: William Bums, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Resolution Authorizing Execution and Delivery of a Private
Redevelopment Contract for Wallboard, Inc.
The City Council conducted the public hearing to add the 3.69 acre parcel for
Wallboard, Inc. into the project area on July 22, 1996. The City Council will approve
the resolution authorizing its addition to the project area on August 12, 1996. No one
spoke in opposition to the request, nor did the City Council state any concerns with
the proposal
Accordingly, the resolution and development contract have been prepared by Jim
Casserly in order to provide Wallboard, Inc. with the $85,000 loan. The development
contract, which is included in the packet, requires payment on the $85,000 loan over
a ten year timeframe at 5% interest. The loan is secured by a personal guarantee
from the owner, Patty Paraschuk.
The loan will be provided when a Certificate of Completion is issued by the Authority.
Recommendation
Staff recommends that the HRA approve the attached resolution authorizing execution
of the development contract with Patricia G. Paraschuk, subject to the City Council
approving its resolution authorizing the parcel to be added to the redevelopment
project area on August 12, 1996.
BD /dw
M -96 -354
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 PATRICIA G.
PARASCHUK.
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 Patricia
G. Paraschuk (the "Redeveloper ").
Section 2. Findings.
2.01. The Authority hereby finds that it has approved and
adopted a development program known as the Modified Redevelopment
Plan for its Redevelopment Project No. 1 (the "Redevelopment
Program ")pursuant to Minnesota Statutes, Section 469.001 et seq.
2.02. The Authority hereby finds that the Contract
promotes the objectives as outlined in its Redevelopment Program.
Section 3. Authorization. for Execution and Delivery.
3.01. The Chairman and the Executive Director of the
Authority are hereby authorized to execute and deliver the Contract
when the following condition is met:
Substantial conformance of a Contract to the Contract
presented to the Authority as of this date.
Adopted by the Board of Commissioners of the Authority this
day of , 199_.
ATTEST:
Executive Director
A
irman
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
DATE: August 1, 1996
AUTHORITY
TO: William Burns, Executive Director of HRA 41 Ai-
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Consider House Plan Design for 5981 - 3rd Street NE
Oliver Tam has submitted a house plan design for the third and final home he will
build in Hyde Park. The new home will be located on the site of the former slip -off
ramp from University Avenue to 3rd Street (cross street is 60th Avenue). The project
was delayed due to the removal of the slip -off ramp which took longer than
anticipated.
The new home is similar in design to the previous homes, however Mr. Tam has
made some modifications to the roof lines, windows, brick facing and floor plan.
The home is a split -entry design with two bedrooms, two full bathrooms, a kitchen
living room and dining room on the upper level (approximately 1,212 square feet).
In addition, there is a 12' x 18' deck off of the dining room.
The lower level (half- basement) is unfinished, but can accommodate one bedroom
and a full bath, laundry room and large recreation room for an additional 1,152
square feet. A two car attached garage is also provided.
Mr. Tam has executed a development contract with the HRA and has furnished a
$50,000 Letter of Credit. He has sold the home to a family out -of -state who plan to
relocate this fall.
Recommendation
Staff recommends that the HRA approve the house plans as submitted by Oliver Tam
for the construction of a new home at 5981 - 3rd Street.
GF/
M -96 -363
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6431 Jackson Street
Cost for minimum amount of work required for occupancy ...........................$
-This is the work written up on the left side of the scope of work
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-This is work that you have detailed in the scope of work in the
sections marked optional. It would be helpful to summarize this
additional work below.
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Bid Summary for
6431 Jackson Street
Cost for minimum amount of work required for occupancy ............................ is the work written up on the left side of the scope of work
Cost for additional improvements
-This is work that you have detailed in the scope of work in the
sections marked optional. It would be helpful to summarize this
additional work below:
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DATE:
TO:
MEMORANDUM
HOUSING
G1 ►i17
REDEVELOPMENT
AUTHORITY
August 1, 1996
William Burns, Executive Director of HRA
fi
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Consider Proposals for the Rehabilitation of 6431 Jackson
Street N. E.
This item was previously discussed at the July 11, 1996 HRA meeting. At that
meeting the HRA authorized staff to prepare specifications and related documents for
prospective bidders. Staff has completed those documents and notified more than 20
interested parties and builders. A copy of the bid documents are attached.
To provide adequate time for people to go through the property and prepare cost
estimates, proposals are due by Monday, August 5, 1996 at 4:00 p.m. At that time
staff will go through the proposals and prepare a short summary on each one. This
information will be distributed at the HRA meeting on August 8, 1996.
It is staff's intent to obtain as much background information as possible on each
proposal. The process to select a bidder is somewhat subjective, however the HRA
may want to consider the following issues:
The amount and type of work beyond the basic improvements. Bidders will
be held to their proposals. Overly ambitious proposals should be carefully
evaluated.
2. The level of detail and supporting documentation to show how much thought
was put into the proposal. "Plugging in" figures without any description of
the type or quality of product may be a sign of a hastily prepared proposal.
Jackson Street Memo
August 1, 1996
Page 2
3. The bidder's experience with doing similar projects. Before and after pictures
are encouraged with the appropriate references are very helpful. Staff will
attempt to contact references if possible before the HRA meeting.
4. Financial capability. The successful bidder will be required to furnish a Letter
of Credit from a financial institution equal to the amount of the proposed
improvements. Although this is not required at the initial bid stage, bidders
who can provide evidence of a Letter of Credit (or the ability to get one) might
be looked upon more favorably.
Recommendation
Due to the uncertainty of the proposals, staff does not have a recommendation at this
time. If the HRA feels that the proposals are inadequate, staff believes it would be
appropriate to order demolition.
GF/
M -96 -364
FA-VA ,
f �
•
FRIDLEY MUNICIPAL CENTER - 6431 UNIVERSITI' AVE. N.E. FRIDLEY_ MN 55432 - (612) 571 -3450 - FAX (612) 571 -1287
July 1996
Re: 6431 Jackson St. NE
Fridley, MN 55432
Vacant HUD Property
To Interested Parties:
As you may recall this past spring this property was listed for sale by the
Department of Housing and Urban Development (HUD). This property
has been a concern for both the neighborhood and the City due to its
condition. In May, the City of Fridley acquired the site from HUD .and
over the past several months has been evaluating options on what to do
with the property.
The Fridley Housing and Redevelopment Authority owns the property and
earlier this month approved a plan to rehabilitate it. Because you
expressed interest in this property, you now have the opportunity to
prepare a proposal.
I encourage you to carefully examine this bid package and view the site
in person. Please note that proposals are due by 4:30 p.m., Monday,
August 5, 1995. Should you have any questions, please do not hesitate
to call me at 572 -3591.
Sincerely,
Grant Fernelius
Housing Coordinator
Mat
Fridley Housing
and
Redevelopment Authority
6431 Jackson Street N.E.
Bid Package
July 1996
Fridley Housing and Redevelopment Authority
6431 Jackson Street N_E_
Proposal Instructions
Introduction
The Fridley Housing and Redevelopment Authority (HRA) is accepting
proposals for the purchase and rehabilitation of 6431 Jackson Street until
Monday, August 5, 1996.
The HRA will consider the proposals at its August 1996 meeting and if
acceptable select the proposal with the most significant level of
investment. The HRA encourages proposals which extend beyond the
minimum level of improvements.
Please note the successful bidder will be required to do the following:
1. Agree to improve the property to a minimum level as outlined in
Attachment B. Bidders have the option. of outlining additional
improvements beyond the.minimum level.
2. Within 30 .da s of ..
y HRA approval;- enter. into �a development- contract.
The development contract specifies the work to be done, cost figures,
completion date and the responsibilities of each party. The develop-
ment contract will also specify a closing date. The HRA will convey
title to the bidder at closing and place a mortgage on the property for
the purchase price of the structure ($40,500). The buyer must then
secure his /her own construction financing for the repairs.
3. Provide a Letter of Credit from a lender acceptable to the HRA. Said
Letter of Credit shall be equal to the cost of the improvements and
run for the term of the development contract. If the work is completed
on time and in accordance with the contract, the LC will be
terminated. If, on the otherhand, the buyer fails to perform under the
agreement, the HRA may its option a) draw upon the LC in amounts
necessary to complete the work, and b) foreclose its mortgage to
regain title.
is
Fridley Housing and Redevelopment Authority
6431 Jackson Street N.E.
Page 2
Introduction (cont.)
4. Complete the project within 180 days from the date of closing. All
work must be done and appropriate building permits finaled before
the home may be occupied.
5. When the work is completed, the buyer shall secure their own
permanent mortgage to take -out (i.e. repay) the HRA for the purchase
price and any private rehabilitation financing. Closing on the
permanent financing should be timed to coincide with the completion
of the project.
Instructions
1. Contractors, developers, and the general public are all- welcome to
submit proposals on this project. -, However, all parties will be held to
the same requirements.
2. Bidders should view both the`-interior and °exterior of the property
prior to submitting an offer. Keys are available for checkout at the
Fridley Municipal Center from 8:00 a.m. to 5:00 p.m., Monday through
Friday. Keys may be checked out for 24 hours.
3. The .Fridley HRA will sell the home for $40,500.
4. Bidders should be as detailed as possible in their proposal. In
addition to providing cost estimates for the minimum level of
improvements, bidders are encouraged to submit drawings, exterior
elevations, site plans, proposed floor plan revisions, etc.
5. Bidders must provide a description of their experience working on
similar rehabilitation projects, and if possible a list of 3 references (Le.
other city officials, building contractors, or past customers).
EN
Fridley Housing and Redevelopment Authority
6431 Jackson Street N.E.
Page 3
Instructions (cont.)
6. Bidders must submit a $500.00 earnest money check with their
proposal. Only certified checks or cashier's checks made payable to
the Fridley HRA will be accepted. The earnest money for
unsuccessful bidders will be returned by August 16, 1996.
7. Return the following documents by August 5, 1996 at 4:30 p.m.:
a) Proposal Form
b) Minimum Scope of Work Form and Summary
C) Earnest Money
d) Any additional plans, drawings, etc.
The HRA should make.a decision by August 16, 1996 and letters will be
sent by that date:- The .HRA reserves the right to reject all proposals with
or without cause. All proposals must be complete and include the proper
forms which are found in this bid package. Incomplete proposals will_ not
be accepted: Proposal's byWonday, August's '1996 at'4:30K`-°i=
p.m. at the Fridley Municipal 6431 University Avenue. If you have
questions about the bid procedures please :contact Grant Femelius,
Housing Coordinator at 572 - 3591.
Attachment A
Proposal Forms
EN
Proposal Form
6431 Jackson Street N.E.
Bidder:
Address:
City, State, Zip:
Phone (Day Time): (_J_-
1. Please check the box which applies to your situation:
I plan to rehabilitate this property and become the owner - occupant.
I plan to rehabilitate this property and sell it to another party.
I plan to rehabilitate this property and lease it as rental property.
2. Please list your experience working on similar projects. Indicate where the
property was located, purchase price, amount of rehabilitation; date of project and
if possible any pictures. If you need more space, please attach.
3. Please provide 3 references for these projects. Include the address and daytime
telephone number.
U,
Proposal Form
6431 Jackson Street N.E.
Page 2
4. 1 would finance the rehabilitation cost (please check which applies):
Financial institution
Private party
Self
Other (please specify
5. 1 have the financial ability to secure a Letter of Credit from a financial institution
equal to the amount of improvements I plan to make to the property.
Yes
No
If not, please specify who will provide the Letter of Credit on your behalf.
Name:
Address:
Phone (Day Time): (� -
6. Please indicate your financial investment in the property:
a. Purchase -Price _ $40,500
b. Minimum Level of Improvements (see Attachment B) $
c. Additional Improvements (see Attachment B) $
d. Total Proposed Investment $
Certification
1, , hereby certify that I have inspected the property
at 6431 Jackson Street N.E., Fridley, MN 55432 and that I am prepared to invest in
the property as outlined above ( #6 a -d). Further, I understand that 'rf the Fridley HRA
accepts my proposal, I agree to enter into a development contract with the HRA by
September 16, 1996. 1 also state that I am making this offer independently and not in
collusion with another bidder.
Signed:
Date:
L
Attachment B
Scope of Work
(Minimum Level of Improvements)
The following document is a list of improvements for 6431 Jackson Street that is required to
completed before it can be lived in. You are asked to use the space on the right hand side of this
scope of work to detail your proposal. Material specifications, flooring allowances, and any other
pertinent information that would help the HRA understand your proposal should be written in this
section. If you are proposing additional work beyond the minimum, you should also write it in
the detail section. There is an example sheet that is filled in following the index that may be
helpful to refer to.
Index of the
Scope of Work for
6431 Jackson Street
Page Number
EXAMPLE....................................... ............................... . . ..... la
1. Kitchen ...................................................... ..............................1
2. Living / Dining Room..................
3. Upstairs Bedrooms ..................................... ..............................2
4. Upper Level Bathroom ............................... ......................... .....3
".5. Lower Level Bathroom ............................. .......:......................4
6. Lower Level Room .:.....:..
................................. ......................4
7. Basement ..................:................................ ..............................5
8. Entry .......................................................... ..............................5
9. Insulation and Weatherization .................... ..............................5
10. Stairways ................................................... ..............................5
11. Exterior (siding, soffits, facia, etc.) ............. ..............................6
12. Front Porch ................................................ ......................... . . . ..7
13. Roof.. 7
14. Heating ....................................................... ..............................8
15. Plumbing ................................................... . .. ...........................8
16. Electrical
Minimum Standards
Reg ui red
1. Kitchen:
a. Repair and refinish, or replace
damaged cabinets
b. Replace damaged counter tops.
c. Complete trim, and kick plate as
necessary.
Repair floor as necessary. Detail
material allowance if you plan on
replacing the floor.
e. Patch sheetrock as necessary
paint with semigloss.
optional Other added items (ie adfding
windows, remodehn� lass l
wall, adding cabinet
2.
er and patch
.
b. Sand and refinish wood floors.
c. Tape, mud, and sand sheet rock.
paint with eggshell.
optional Other added items (ie. replacing
painted trim, adding french doors
on east wall, adding 1/2 bath in
extra stairwell, etc.)
Please provide any details or comments
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Minimum Standards
Reg u i red
1 _ Kitchen:
a. Repair and refinish, or replace
damaged cabinets
b. Replace damaged counter tops.
c. Complete trim, and kick plate as
necessary.
d. Repair floor as necessary_ Detail
material allowance if you plan on
replacing the floor.
e. Patch sheetrock as necessary and
paint with semigloss.
optional Other added items (ie adding
windows, remodeling glass block
wall, adding cabinets.)
2. Livin&Mining Room:
a. Remove wall paper and patch
sheetrock as necessary.
b. Sand and refinish wood floors.
c. Tape, mud, and sand sheet rock.
paint with eggshell.
optional Other added items (le- replacing
painted trim, adding french doors
on east wall, adding 1/2 bath in
extra stairwell, etc.)
Please provide any details or comments
Gtr
Minimum Standards
Required
Please provide any details or comments
3. Upstairs Bedrooms:
a. Replace or repair all of the bedroom
entry doors and closet doors
including hardware. Detail door style
(six panel, hollow core, pocket, or
bifold, etc.) and finish (natural wood
or paintgrade.)
b. Replace aluminum slider windows
with size and style appropriate for the
side of the house (Casements in the
front and double hung in the back)
c. Provide and install all window, door
and baseboard trim. Detail wood
species,_ profile, and finish
d. Provide and install all closet
hardware:.- Clothes pole and uvver
shelf
e. Sand and- refinish wood floors. Patch —
sections that are bulging due to water
damage. If you plan on installing
carpeting instead, detail brand, grade,
and sq. yd allowance.
f. Patch, tape, and sand sheetrock
Paint with eggshell.
optional Other additional items (ie. Floor
plan changes to enlarge bedrooms
etc.)
Minimum Required Please provide any details or comments
Standards
4. Upper Bathroom:
a. Bathroom is currently gutted.
Insulate, install vapor barrier and
sheetrock. Detail any wall treatments
(ie ceramic the wainscoting etc.)
b. Provide a sketch of your proposed
fixture layout. Provide and install
mid level fixtures at the locations that
plumbing is roughed in.
c. Detail brand and style or fixture
allowance for tub, enclosure, shower
valve and faucet, sink (pedastle or
cabinet style), faucet, medicine
cabinet, stool, paper dispenser, towel
rack
d Provide and install bath vent ;fan and
ductwork to the outside. Include a
timer switch.
e. Provide and install, at minimum, vinyl
sheet product flooring with new 1/4"
luan underlayment. Replace any
rotted or damaged subfloor Detail
any alternative floor material.
optional Other additional items:
;z
Minimum Require Please provide any details or comments
Standards
5. Lower Level Bathroom:
a. Replace aluminum window. Detail
type of window (glass block,
casement, double hung)
b. Remove wall paper, patch sheetrock
and paint.
c. Repair or replace plumbing fixtures
and faucets to ensure that they are in
proper working order. Make sure
that glass shower enclosure is
attached and working properly.
Detail any fixtures and faucets you
plan on replacing.
optional Other additional items:
6. Lower Level Room
a. Repair or replace doors to the
garage, back yard, 3/4 bathroom.
Detail style of new doors, finish, and
hardware sets. Provide and install
new windows in the front and back.
b. Patch, tape, and sand damaged
sheetrock. Paint with an eggshell
finish.
c. Replace flooring. Detail type of
flooring (carpet, tile, wood etc.) and
sq. yard allowance.
optional Other additional items (ie. floor
plan changes, adding a door to the
basement stairs, closing off on of
the stairs to the mid level, moving
the garage entry door, etc.)
A TE
Minimum Required
Standards
7. Basement:
a. Demolish and remove all non load
bearing walls in the basement. Leave
basement in unfinished state.
optional Other added items: (ie glass block
windows, egress windows, finishing
of the space, etc.)
8. Entry:
a. Repair or replace entry door to
ensure proper fit and seal. Install
new hardware as necessary.
Please provide any details or comments
b.. Repair or replace closet door. Detail
style and finish of new door. Provide
and install coat pole and shelf a
optional Other added items re; replace file
flooring, etc.)
9. Insulation and Weatherization:
a. Insulate and install a vapor barrier in
all opened wall cavities.
optional Detail any added ceiling insulation:
l0.Stairways:
a. Repair or replace treads and handrails
as necessary.
b. Detail floor covering (refinish wood,
install carpeting or runner, etc.)
optional Other added items:
Minimum Required Please provide any details or comments
Standards
11.Exterior•
a. Remove and dispose of aluminum
siding. Repair or replace sheathing
as necessary to provide and solid
backing for the new siding. Provide
and install new polystyrene board to
even walls and new siding. Detail
proposed siding type (vinyl,
aluminum, wood, etc.)
b. Repair damaged stucco on the block
portions of the front and back.
Detail any other options.
c. Properly secure the attached garage
to the house and seal as necessary.
d. Repair garage roof trusses. They
currently do not rest on their
designed bearing point (2x4
blocking and plywood gusset plates
probably will be sufficient, but final
work must be approved by the
building inspector.)
e. Provide and install a service door in
the rough opening to the back yard.
Detail style and finish.
f. Remove rotted soffits and fascia.
Repair or replace any deteriorated
rafter ends. Detail proposed soffit
and facia material (aluminum or
wood). Provide ventilated soffits to
work with new roof vents.
optional Other added items: (ie changing the
overhangs, change roof line, etc.)
Minimum Required Please provide any details or comments
Standards
12.Front Porch:
a. The front porch is not very well built
or well thought out. While the porch
would not necessarily need to be
rebuilt for occupancy, the HRA does
think that this is important element to
make an improvement to the exterior
appearance of the house. Detail your
proposal to repair or replace the front
porch and or the planters along the
front of the house. Provide drawings
if necessary.
13.Roof
a. Tear off existing shingles. Roof with
25 Year fiberglass shingles, ice and
water, shield, and additional roof;;,
vents to meet current codes. Rotten
or damaged sheathing will need to be
replaced.
Minimum Standards
Required
14.Heatinin
a. The boiler and baseboard system
has freeze damage. Detail type of
replacement system (forced air or
boiler)New heating system shall meet
current building codes and provide an
equal distribution of heat throughout
the house.
15.Plumbing•
a. There is some freeze damage.
Replace water heater. All supply
lines will need to be tested. Repair or
replace as necessary. Waste and vent
system will also need to be repaired
or replaced to comply with current
codes. Because the home can not be
occupied, all plumbing work will
need to be done by a licensed
professional.
16.Electrical:
a. Power was off at the time. There is
some temporary / incomplete wiring.
The entire system will need to be
brought up to code for occupancy.
Include replacing all missing fixtures.
Please provide any details or comments
Bid Summary for
6431 Jackson Street
Cost for minimum amount of work required for occupancy ...........................$
-This is the work written up on the left side of the scope of work
Cost for additional improvements ........................................ ..............................$ sd0
-This is work that you have detailed in the scope of work in the
sections marked optional. It would be helpful to summarize this
additional work below_
W-A
ddlt)"
01-t Mt4lo�e
d X /Z
Adel -f'rGvLCI, doo r�
SO-
ProposedRehab...... .. ...................... ..............................$ 5 2
low
d t�
Contingency .......................... Z v U
._.. � / o ..... ............................... `��
Rehab Total ................................................. ..............................$57,756
Bid Summary f -or
6431 Jackson Street
Cost for minimum amount of work required for occupancy ...........................S.
-This is the work written up on the left side of the scope of work
Cost for additional improvements ........................................ ..............................S
-This is work that you have detailed in the scope of work in the
sections marked optional. It would be helpful to summarize this
additional work below:
ProposedRehab .............................. _ ......... ..............................$
+ Contingency .............. ....... $
RehabTotal ................................................. ..............................$
DATE:
TO:
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
August 2, 1996
William Burns, Executive Director of HRA r�nl J
FROM: Barbara Dacy, Community Development Director
SUBJECT: Review Performance of MEPC American Properties under
Contract for Exclusive Negotiations
Section 3.2.H requires the Authority to "Conduct a comprehensive review of
redeveloper's performance under this agreement on at least September 1, 1996 and
March 1, 1997." Section 3.1.A - J establishes the "redeveloper responsibilities ". To
follow is a synopsis of the status of MEPC's performance. In general, a significant
amount of work has been completed.
A. Establish office market data on this location and determine the corporate users
and amenities for space in the redevelopment project.
MEPC has 25 - 30 potential office and commercial users. A response from the
software company is anticipated after September 1, 1996. Another proposal is
currently being prepared for a financial institution now located in downtown -
Minneapolis. Potential restaurant and hotel users have also been contacted. Most
recently, an individual representing a number of investors contacted MEPC to discuss
a full service hotel. MEPC is providing them with a packet of information. MEPC has
also published the site in its annual report on properties (copy will be available at the
meeting).
B. Review any previous plans and design a Master Plan.
The Master Plan was approved by the City Council on June 24, 1996. The Master
Plan process was initiated in January with two neighborhood meetings and was
reviewed by the Planning Commission and the Housing & Redevelopment Authority.
F
Review Performance of MEPC
August 2, 1996
Page 2
C. Develop marketing materials such as flyers and brochures to assist in
marketing efforts for mailings, advertising, proposals, broker parties, press
releases, etc.
Specific marketing activities completed are as follows:
(1) Two new signs were installed on the site.
(2) A focus group for brokers was conducted on February 22, 1996.
(3) A direct mail piece was mailed to 350 brokers in June, 1996.
(4) A broker event was held on the site on July 18, 1996.
(5) MEPC published and distributed informational packets on the site and
distributed them to the attendees at the July 18, 1996 event.
D. The official announcement to the public of the redevelopment property would
be achieved by the broker special event on the site, news releases, corporate
user presentations, and mailings to prospects.
All of the above have been completed.
E. Investigate the adequacy of soils, utilities, and street systems for the Master
Plan.
MEPC's architectural firm has received and reviewed copies of the original soil report
as well as the original utility plans.
F. Review and comment upon the adequacy of the existing Indirect Source Permit
and Environmental Assessment Worksheet for the Master Plan implementation.
The Indirect Source Permit has been reviewed and approved by the MPCA and a
copy has been forwarded to MEPC. The Environmental Assessment resolution
adopted by the City Council in April has also been forwarded to the MEPC.
G. Review and comment upon the adequacy of existing ordinances to facilitate
development of the Master Plan.
No change anticipated at this time.
..
Review Performance of MEPC
August 2, 1996
Page 3
H. Investigate the status of title, and review existing environmental reports
regarding any hazardous substances.
MEPC's attorney is currently evaluating title information.
Every 90 days, provide a written activities report to the Authority which
describes the redevelopers activities pursuant to this agreement.
Although a written report has not been submitted, MEPC has appeared before the
HRA on January 11, 1996, April 11, 1996, and on June 13, 1996, to update the HRA
as to their activities.
J. Cooperate with the City and Authority in reasonable and appropriate ways.
To date, MEPC has been very cooperative in responding to third party referrals and to
comply with requirements of the Master Plan process.
SummaN
Section 5.1.A gives the Authority the ability to terminate the agreement if by August 1,
1996 the redeveloper did not complete the program elements listed in the marketing
plan of the agreement. Based on the above accomplishments, termination is not
recommended. MEPC has completed key projects to introduce the site to the office
market and it is hoped that next year will be even more successful.
BD /dw
M -96 -355
MEMORANDUM[
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: August 2, 1996
TO: William Burns, Executive Director of the HRA �rn�
FROM: Barbara Dacy, Community Development Director
SUBJECT: Senior Housing Proposal at Northwest Corner of 83rd
Avenue and the West University Avenue Frontage Road
Proposal
Noah's Ark Senior Housing Inc., a non profit housing group, is proposing to construct
a 104 unit independent living apartment building at the site located just east of
Springbrook Apartments and just south of Wal -Mart. The site is zoned C-2, General
Commercial. "Homes for the elderly" are a permitted use in this district.
Noah's Ark has been interested in the site since last fall (the HRA reviewed
preliminary information in September), and was attempting to sign a purchase
agreement with the owner early this month, when Goodwill Industries made a
competitive offer to the owner (American Bank). The owner had advised staff that
they would proceed with the purchase agreement with Goodwill Industries at the end
of July unless preliminary endorsement from the City was obtained.
As a result, the City Council discussed the proposal on July 22, 1996, and two phone
conversations were conducted with Chairperson Commers. The owner understood
that these discussions were informal at best, and were subject to full HRA and
Council action.
City Council Discussion
The Council felt that the senior housing proposal met a housing need in the
community and was well located near shopping areas and the Nature Center. There
were no objections to proceeding with the project.
5
Senior Housing Proposal
August 2, 1996
Page 2
Financial Request to the Housing and Redevelopment Authority
Noah's Ark is requesting the City to issue tax exempt Housing Mortgage Revenue
Bonds and to provide tax increment financing assistance. The City Council
understands that it will need to approve the bond request in the near future. The
issue for the HRA is whether to provide pay as you go tax increment assistance.
The site is located in Tax Increment District #3. A "pay as you go" approach is
requested for the tax increment assistance. The amount of requested assistance,
according to the developer, may range from $615,000 to $755,000; however, a
preliminary cash flow analysis has shown that the district can only produce $683,000
in tax increment. The project cost will be approximately $8,500,000.
As the project proceeds, the project costs will be better defined and the amount of
assistance adjusted. The site contains a wetland and will require additional fill,
wetland mitigation, or other site improvements to create a buildable site.
The bond issue will require that 40% of the units be offered to households at 60% of
the area median income of $52,800. Depending on the household size, this
translates roughly to household incomes less than $30,000; a 2 person household
income limitation is $26,220 and for 1 person it is $22,920.
The proposed rental rates are $575 to $1,100. These rates equate to an income
range (assuming that the rent equals 30% of the household income) of $20,000 -
$35,000. According to the 1990 census, there are over 2,247 households (or
approximately 4,500 people) who are over 55 and have incomes less than $35,000.
The HRA's assistance is providing affordable senior housing as opposed to creating
jobs (Wallboard Inc.) or clearing the site for sale to a developer (southwest quadrant).
This proposal is really a true "housing" project as opposed to the many
redevelopment and economic development projects the HRA has completed.
According to Casserly's analysis, the tax increment assistance reduces the cost of the
rent by about $100 /unit. The tax increment assistance is also used as part of the
cash flow to support the project.
The units offered to the lower income households will be taxed at 2.3% and the
remaining at 3.4 %. There is enough time remaining in the district to support the pay
as you go request.
Senior Housing Proposal
August 2, 1996
Page 3
Issues Raised by Chairperson Commers
Although Chairperson Commers was not opposed to the request, he asked me to
research previous Council discussion on senior housing. Mr. Commers subsequently
faxed a memo from 1989 from the City Manager to the HRA (see attached). The
Council developed this policy in response to two concurrent senior development
requests which were proposed at the time: John Arkell's "Cottage" proposals, and
Westminster's (now Common Bond) request for market rate housing (Arkell withdrew
his land use requests and the Westminster request did not proceed because they
needed about 25% assistance).
The proposed project by Noah's Ark meets the guidelines discussed in the 1989
memo. The pay as you go approach preserves the HRA's cash flow as opposed to a
loan of up to 15 %. The largest amount of assistance at $680,000 represents about
8% of the project cost.
Noah's Ark is a non profit organization. The bond sale and the TIF must be in place
for the project to occur. The project meets the "but for" test.
Mr. Commers also asked that Todd Stutz be contacted to determine if the project
would affect the development of the senior townhomes. Stutz stated he had no
objections to the HRA assisting the project, and felt that both products would be
good for Fridley's senior market.
Analysis
There are several advantages to the senior housing proposal at this site:
The senior housing proposal will generate more taxes than a commercial use;
approximately $150,000 /year versus $50,000 /year.
2. After the tax increment financing district expires, a higher value project will exist
on the property.
3. The senior housing proposal fills a gap in the continuum of senior housing in
the City:
A. The existing two projects (Village Green and Norwood Square) are
aimed at low to very low income households; the proposed request is
aimed at both low and moderate income households.
RA
ER�fl
Senior Housing Proposal
August 2, 1996
Page 4
B. In addition, as an independent living facility, it offers a rental option to
those seniors who can still drive and perform daily housekeeping
chores.
4. The developer feels the site is well suited to senior housing because:
A. The site is located within an existing "shopping pattern" near Northtown.
B. The site overlooks the Nature Center, which will be attractive to some
households, and will also face University Avenue, which is attractive to
those seniors who want to "keep track of what's going on outside ".
C. The site is served by pedestrian trails through the Nature Center and
there are walkways along the frontage road.
D. The site has good visibility for family members wanting to visit.
5. Staff's analysis of the site from a land use perspective is:
A. The proposed use adds another residential project "around" a
commercial node at 85th Avenue which will add more consistency to the
existing land use pattern.
B. The use does not need full movement access at 83rd Avenue.
C. The preliminary site plan appears to address the storm ponding,
wetland, and parking requirements for the subject use.
D. The project is consistent with the findings of the recent Housing Action
Plan.
Recommendation
Staff recommends that the HRA authorize staff to proceed with formal negotiations
with Ark Development to provide pay as you go tax increment financing and prepare
a development contract for HRA approval.
NOTE:
Ark Development is also interested in pursuing the northeast quadrant for an assisted
living project. Additional information is currently being prepared and the matter is
Senior Housing Proposal
August 2, 1996
Page 5
being scheduled for Council discussion sometime in August. The item will be
scheduled for HRA discussion in September.
M
M -96 -359
Noah Is Ark E--p-
sins Inc.
June 6, 1996
Ms. Barbara Dacy, Director of Economic Development
City of Fridley
Municipal Center
6431 University Avenue Northeast
Fridley, Minnesota 55432
Dear Barbara,
appreciate having this opportunity to visit with you, Scott Hickok, and Jim
Casserly to further discuss our proposal for two senior housing projects.
As you are aware, our architect, Skip Sorensen of Johnson, Sheldon & Sorensen,
has assisted Noah's Ark in designing a preliminary schematic design for a
prospective 104 unit senior housing development on a three acre site adjacent
the Wal -Mart, adjoining the western edge of the West Service Road, adjacent
University Avenue.
Below, I will proceed in identifying the anticipated site development costs for this
development that fall within the scope of Tax Increment Financing considerations.
These costs include-
Site acquisition $350,000 - $350,000
Wet land mitigation 100,000 - 175,000
Earth work 135,000 - 165,000
Roads and walks 40.000 - 65.000
Total- $615,000 - $755,000
In addition, we are interested in developing an assisted living and child daycare
facilities on the northeast corner of University Avenue and Mississippi Street.
This three and one /quarter acre site is primarily owned by Theisen B Partnership.
The family also controls the single family residence on Mississippi Street. It is our
understanding that the City is also interested in the single family residence on
66th Ave. N.E., being included in this project.
3434 Lexington Avenue Nori' Paul, Minnesota 55126
612 484- 6474/F , 484 -9254
Ms. Barbara Dacy
June 6, 1996
Page Two
Below, I will proceed in identifying the anticipated site development costs for this
development that fall within the scope of Tax Increment Financing considerations.
These costs include:
Site acquisition $850,000 - $1,150,000
Demolition 80,000 - 105,000
Earth work 155,000 - 195,000
Roads and walks 65.000 - 85,000
Total: $1,150,000 - $1,535,000
In order to do these projects, it will require financial assistance from the City of
Fridley. It is our hope that TIF dollars from the northern 104 unit site can also be
utilized on the assisted living and child daycare project.
We look forward to working with you on these two exciting projects.
Sincerely,
Gary . Bidne
Executive Director
i
WAL MART SITE:
This project assumes the development of 104 units of independent
senior housing on a single parcel within existing TIF District
#3. Assuming estimated construction costs of $5.754 million, the
per unit market value approximates $44,262 for a total of $4.603
million. In converting this market value into a tax capacity, it
is further assumed that 600 of the units have a class rate 2.30
and the remaining 40% are at 3.40. The estimated per unit tax
capacity and taxes payable for units at 2.3% are $63,525 and
$74,745, and at 3.4% they are $62,604 and $73,662. The total tax
capacity and estimated taxes upon completion in 1997 approximate
$126,129 and $148,406, respectively. Over the remaining eight
and a half tax increment years (the TIF District terminates in
June 2007), approximately $1.193 million is generated in tax
increment. After deducting 10.0% for City admin fees,
approximately $1.074 million ($683,156 in 1997 dollars at 8.0%)
is available for the project.
If additional funds are needed for the project, an option may be
to decertify the parcel from TIF District #3 and create a new
housing TIF District. Although a longer term can be achieved and
thus additional tax increments generated, the City will have to
elect between a 10.0% contribution to the project or an LGA /HACA
reduction.
CITY OF FRIDLEY, MINNESOTA
17— Jun -96
WAL MART SITE
ASSUMPTIONS
02- 30 -24 -22 -0010 (Existing TIF #3)
Original Market Value
249,300
Original Tax Capacity
60.000% @
2.300%
6,831
40.000% @
3.400%
Estimated Construction Costs
104 units @
55,328 / unit
5,754,079
Estimated Market Value 80.000%
104 units @
44,262 / unit
4,603,263
Estimated Tax Capacity 60.000%
62 units @
2.300% 63,525
126,129
40.000%
42 units @
3.400% 62,604
Estimated Taxes
62 units @
74,745
148,406
42 units @
73,662
Pay 1996 Tax Rate
1.17662
Construction 100.000% 1997
Valuation
1998
Taxes Payable
1999
Administrative Fees
10.000%
Inflation
0.000%
Present Value Rate
06/01/97 8.000%
NALMARTI PREPARED BY CASSERLY
MOLZAHN & ASSOCIATES,
INC.
17— Jun -96
CITY OF FRIDLEY, MINNESOTA
WAL MART SITE
CASH FLOW AND PRESENT VALUE ANALYSIS
Original Estimated Captured Estimated Less: Available
Tax Tax Tax Tax Admin Tax
Date Capacity Capacity Capacity Increment Fees Increment
8.000% P. V. RATE
Semi Annual Cumulative
Balance Balance
06/01/97
6,831
6,831
0
0
0
0
0
0
12/01/97
6,831
6,831
0
0
0
0
0
0
06/01/98
6,831
126,129
0
0
0
0
0
0
12/01/98
6,831
126,129
0
0
0
0
0
0
06/01/99
6,831
126,129
119,299
70,185
7,018
63,166
53,995
53,995
12/01/99
6,831
126,129
119,299
70,185
7,018
63,166
51,918
105,913
06/01/2000
6,831
126,129
119,299
70,185
7,018
63,166
49,921
155,834
12/01/2000
6,831
126,129
119,299
70,185
7,018
63,166
48,001
203,835
06/01/2001
6,831
126,129
119,299
70,185
7,018
63,166
46,155
249,990
12/01/2001
6,831
126,129
119,299
70,185
7,018
63,166
44,380
294,369
06/01/2002
6,831
126,129
119,299
70,185
7,018
63,166
42,673
337,042
12/01/2002
6,831
126,129
119,299
70,185
7,018
63,166
41,031
378,073
06/01/2003
6,831
126,129
119,299
70,185
7,018
63,166
39,453
417,527
12/01/2003
6,831
126,129
119,299
70,185
7,018
63,166
37,936
455,463
06/01/2004
6,831
126,129
119,299
70,185
7,018
63,166
36,477
491,940
12/01/2004
6,831
126,129
119,299
70,185
7,018
63,166
35,074
527,013
06/01/2005
6,831
126,129
119,299
70,185
7,018
63,166
33,725
560,738
12/01/2005
6,831
126,129
119,299
70,185
7,018
63,166
32,428
593,166
06/01 /2006
6,831
126,129
119,299
70,185
7,018
63,166
31,181
624,347
12/01/2006
6,831
126,129
119,299
70,185
7,018
63,166
29,981
654,328
* 06/01/2007
6,831
126,129
119,299
70,185
7,018
63,166
28,828
683,156
1,193,137
119,314
1,073,824
683,156
683,156
* According to Anoka County's records, the TIF District terminates in June, 2007.
WALMART1 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES, INC.
R1
17- Jun -96
HOUSING & REDEVELOPMENT AUTHORITY MTG. SEPTEMBER 14 1995 PAGE 10 (M
Ms. Schnabel asked, if we are going to require MEPC to have a
building underway by a certain date, are we not obligated to at
least get our analysis of the intersection done so that we can
proceed.
Mr. Burns stated yes. This would be fitting with their
expectations.
Ms. Schnabel stated, if MEPC consents to the proposal, we are
saying by July, 1997, we want to see something. That is 1.5
years. If it takes one year to get approval, that gives us 6
months to implement it. We would have to stay on a good
timetable to move this along and be prepared to provide an
intersection in 1997 or 1998 depending on the size building
constructed.
Mr. Commers stated he is not suggesting that we not go along with
the analysis, but he is raising the issue of the next phase.
Mr. Burns stated no one knows what MEPC's plan will look like.
Based on what they have said, it appears that they are going to
give strong consideration to the existing plan. In going back
and asking for the permits, we have some assurances that the
plans will look something like the one we had in the past.
Ms. Schnabel stated, as she recalled from the intersection plans
to the development, there are new lanes that must be constructed.
There would be a major construction at that intersection and it
would take a number of months to accomplish what must be done.
Yet she also is concerned about how current the data will be by
the time we get to that point.
MOTION by Ms. Schnabel, seconded by Mr. McFarland, to approve the
first phase as proposed in the letter of September 14, 1995, from
Ms. Linda Fisher.
j UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
� THE MOTION CARRIED IINANIMOIISLY.
---- - - - - -- -- - --
INFORMATION ITEMS•
11. CONSIDER REQUEST FOR TIF ASSISTANCE FOR ARK DEVELOPMENT
Ms. Dacy distributed copies of a letter dated September 14, 1995,
from Mr. Gary Bidne, Executive Director, Noah's Ark Affordable
Housing Inc. She also received a site plan. Mr. Bidne provided
an estimate of costs. In the sources of funds, Mr. Bidne
included the equity of the owner but did not include the
requested amount of TIF and tax exempt bonds.
J
HOUSING & REDEVELOPMENT AUTHORITY MTG. SEPTEMBER 14, 1995 PAGE 11
Ms. Dacy stated the project is similar to what they did in Spring
Lake Park. This project however is not constructed. Ms. Dacy
assumed Mr. Bidne would be requesting a similar amount of money.
The total project costs were approximately $8 million. They got
$1.1 million in TIF pay -as- you -go assistance or $75,000 to $85,00
per year for 15 years. The bond issue was from $5 -$7 million.
They combined their own non - profit sources, tax exempt bonds and
TIF.
Ms. Dacy stated the proposed site is at 83rd Avenue and
University to the west of University next to Springbrook
Apartments. They are proposing a 4 -story rental senior building
with 104 units - half one - bedroom units and half two bedroom
units. The rents would be $550 to $650 per month. They would
hire a management company to manage the buildings that
specializes in senior rentals and in health care to provide
assistance to residents. This is an independent living facility
with assistance available. There will be a common area to
provide space for catered functions. Ark has received approval
from Spring Lake Park and New Brighton.
Ms. Dacy stated, in terms of TIF, she did not have specific
numbers. Staff is asking if the HRA is interested in this
project so that staff can meet with Mr. Bidne to bring back a
more detailed proposal. Senior housing is a permitted use in
this area. There are no planning issues at this point. Having
just received the site plans, she did not know if any variances
were needed. There is a wetland in this area.
Mr. Commers asked how this ties in with Rottlund. The argument
is whether to spend additional money for 30 to 40 units. If we
spent the extra money for 30 to 40 units at the Southwest
Quadrant and this project is 110 units, it seems that we would
get a bigger result for the money.
Ms. Dacy stated one issue is that their TIF request in Spring
Lake Park was very similar if not the same to what Spring Lake
Park provided. In terms of financing, this is a real proposal in
the market. $1.1 million out of $8 million is 12.50 of the
project.
Ms. Dacy stated she did not think there was a market competition.
Their age target is much different. Both would be good for the
community. However, the Southwest Quadrant has a cost issue.
Ms. Dacy stated, in her memo regarding the Southwest Quadrant,
she outlined three options which the City Council evaluated. The
City Council recommends the HRA proceed with the condominium
units.
9W
HOUSING & REDEVELOPMENT AUTHORITY MTG. SEPTEMBER 14 1995 PAGE 12 f,
Mr. Casserly stated staff is looking for direction as to whether
to continue to explore the concept. It takes between 6 and 24
months to put something like this together_ These are tough
projects to do. The proposed project is rental apartments as
opposed to condominiums in the Southwest Quadrant.
Ms. Schnabel asked if New Brighton was rental units and are these
fully rented.
Mr. Casserly stated yes, the units are rental and are fully
rented.
Mr. McFarland stated New Brighton has a waiting list. The price
range is relatively the same.
Ms. Schnabel stated, if the units are for those aged 70 and above
with rental fees of $550 to $650, she thought that was high for
those individuals.
Ms. Dacy stated a certain number of units must be identified for
lower income. The two bedroom will be higher. There will be low
to moderate rents.
Ms. Schnabel stated the statement was made that this would not
complete with Rottlund. What is the basis for that?
Ms. Dacy stated the developer said that he felt these were two
different types of developments with perhaps a 5% or less market
overlap. She has no data to support that, and it was from the
developer's information.
Mr. Casserly stated these are two different concepts. This is
rental with assisted living. We need to know more. There are
several projects in the northern suburbs that are campus -type
projects. He thought this worth additional discussion. There
are issues to resolve. Mr. Bidne is trying to identify their
package and then bring it to a larger group. There may be others
trying to do other projects. The trend is toward senior campuses
with different components. He did not think there was
competition between this and the Rottlund project.
Ms. Dacy stated she had asked Mr. Bidne if he would be competing
with his own projects in New Brighton and Spring Lake Park. He
felt the demographics show this will work.
Ms. Schnabel stated on the other side, if this was a successful
project, would it leave Rottlund off the hook in doing a senior
component. Would we want to change our thinking regarding a
senior section in the Southwest Quadrant?
HOUSING & REDEVELOPMENT AUTHORITY MTG. SEPTEMBER 14, 1995 PAGE 13
Mr. Commers stated, even though one project is condominiums and
the other is rental units, to bring in 110 senior units at $1
million in tax increment compared to adding 48 condominiums at
$800,000 is hard to justify. The bottom line is you have housing
for seniors that you are keeping in the City.
Mr. Prairie stated the question is what does the HRA feel about
having 48 condominiums or none. We could put in no condominiums
and have townhouses. He thought the City Council wanted the
condominiums. If this project is 20% or 10 %, do we let that
affect our thinking.
Mr. Casserly stated he thought there were several people looking
to do projects in the City. There is a need for this type of
product. They are hard projects to put together. Putting
together a project requires the right land price, the right
amount of subsidy, getting tax exempt bonds, etc. That is why it
takes a while to make them work.
Mr. Casserly stated the HRA could put a similar kind of project
in the Southwest Quadrant. You could put in 80 units.
Apartments generate more taxes but also need more ongoing
subsidy. You could take that proposal and do a rental building
in the Rottlund project. But, people were more inclined to keep
the Southwest Quadrant owner- occupied. There is nothing involved
with following through and seeing if this project is doable.
They are looking for an expression of interest.
Mr. Prairie asked if Rottlund had contacted Mr. Brickner.
Mr. Burns stated he had received a call from Rottlund stating
they would contact Mr. Brickner, but had not yet done so.
Mr. Prairie stated Mr. Brickner proposed 40+ apartments on Old
Central.
Mr. McFarland asked if these units would generate tax credits for
the investor.
Mr. Casserly stated yes, if they meet the requirements for the
tax credits. He thought they were talking about tax exempt bonds
rather than tax credits.
Mr. Commers stated our studies indicate we have ample room for
senior housing. We have 50 units at Westminster. We have some
room. There is no reason not to keep looking at the proposal.
The HRA members concurred.
07/23/96 14 :19
MEMORANDUM
NO.992 Pa22i0a3
r city of Fridley cwk* of tho City Yana r
9a
4421 University Alfonso M.1.
Fridley. r1...6.1a $6422 William W. sums
Phone 1.161411 -04se
TO: Housing and Redevelo went Authority
FROM: William W. Burns p-.
DATE: December 14, 1989
SUBJECT: TIP Guidelines for Senior Housing
council discussed the uses of TIP for senior housing projects at
a conference session on December 11, 1989. An informal consensus
reached at this meeting establishes the following guidelines:
1. TIP may be used to provide a loan of up to fifteen
percent (15 %) of the project cost for any purposes
allowed under State law. The loan is to be secured by
a second mortgage.
2. TIF may be used to provide a grant of up to five percent
(5 %) of project cost. The grant is to be used for soil
correction or land assemblage.
3. TIF may be used to provide a combination grant and loan
that does not exceed the value of a fifteen percent (15 %)
loan. The grant and loan components are to be used for
the purposes identified in Items 1 and 2.
4. In deciding whether to award a grant or loan, several
conditions should be observed:
a. There should be a demonstrated local market for the
project.
b. The loan or grant should be funded from the tax
increment generated by the project.
C. Generally speaking, preference should be given to
redevelopment projects over projects proposed for
vacant land.
I
07/23/96 14:15
Memorandum to HRA
December 14, 1989
Page Two
No -352 P0�3/ 23
Council also indicated a desire to reexamine the TIF standard for
senior housing at such. time as they consider comprehensive TIF
guidelines.
Finally, Council supports the use of housing revenue bonds as a
form of assistance for senior housing projects. They recognize
that this tool may be used by itself or in combination with tax
increment financing.
WWB:rsc
i Wall
HOUSING & REDEVELOPMENT AUTHORITY MEETING DEC. 14 1989 PAGE 7
the life of that district by an additional bond sale. This
information will be coming back to the HRA.
Mr. Robertson stated the same thing is true of economic development
districts. There may be some pending state legislation at the
session that starts in February that will more restrict economic
development districts. Although most of the City's districts are
redevelopment districts, they do use economic development districts
for soil correction. If, in the next month or so, it appears that
there will be pending legislation that would somehow tie the HRA's
hands in creating these districts, staff may come back to the HRA
with some proposals that would preempt this legislation from
cutting off that option.
Mr. Pribyl called the HRA's attention to his memo to Jock Robertson
dated December 8, 1989, re: Change in Methodology for Charging HRA
for Administrative Staff Time.
Mr. Robertson called the HRA's attention to a memo from William
Burns dated December 14, 1989, giving the results of the December
11, 1989, Council Conference meeting on "TIF Guidelines for Senior
Housing ". He would recommend the HRA review this memo and decide
whether they want to adopt it as part of the policy for calendar
year 1990 or whether they want to wait and consider it as part of
an overall policy guide for the TIF program which is part of the
1990 workplan. No- action is required at this time.
ADJOURNMENT:
MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to adjourn the
meeting. Upon a voice vote, all voting aye, vice- Chairperson
Schnabel declared the December 14, 1989, Housing & Redevelopment
Authority meeting adjourned at 8:20 p.m.
Respectfully sub tted,
Ly e Saba
Recording Secretary
DATE:
TO:
MEMORANDUM
HOUSING
[Awl
REDEVELOPMENT
AUTHORITY
August 1, 1996
William Burns, Executive Director of HRA �y
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Status of Housing Program Budget
This year the HRA budgeted $1,150,000 for housing rehabilitation programs.
Attached is a breakdown of the budget. As you can see, the programs have been
tremendously successful and demand has far exceeded our initial expectations. In
fact, if all of the pending loans are closed this year we could exceed our production
goal by almost 50 %!. On the flip side there is the potential that we could exceed the
housing program budget by the same percentage.
It should be emphasized, however, that all of the funds used so far have been to
make revolving (i.e. regular installment) loans. Only a small amount, approximately
$20,000 covering 3 loans, is deferred until properties are sold. The vast majority of
the money will be paid to the HRA as income over the course of the next 20 years.
These funds have come out of HRA reserves and should be considered revenue.
Since we began our city -wide program with CEE in April, 85 HRA loans have been
made for a total of $1,022,893. An additional 16 loans and grants from non -HRA
funds have also been made for a total of $167,683. Total production for the year
through July 31 st is 101 loans for a total of $1,190,576.
At this point there are still 53 applications pending. Most of these are from
homeowners who are still trying to get estimates for their projects. According to
CEE's projections, if all of the loans closed this year the maximum required could
total $608,307. Because we have not spent all of the housing program budget
(balance of $127,107), the net impact in a worst case scenario is $481,200. Again,
virtually all of the $608,307 would be provided in the form of regular installment loans
paid back the HRA every month.
9
Housing Program Budget Memo
August 1, 1996
Page 2
Recommendation
Staff recommends that the HRA authorize up to an additional $500,000 for the
housing program budget for 1996. We will continue to update the HRA on the status
of the housing program each month.
G F/
M -96 -362
�l
Fridley HRA
Housing Program Budget
Program
Interest Rate Write Down Fund
Revolving Loan Program
Last Resort Programs/ Matching Deferred
Purchase Plus Program
IFAZA
* * ** Projected Figures * * **
1996
Budget
Y —T —D
Add'I
Amount
Actual
Funds
Total
$50,000
$0
$0
$0
$250,000
$971,176
$555,000
$1,526,176
$800,000
$51,717
$53,307
$105,024
$50,000
$0
$0
$0
$1.150.000
$1.022.893
$608,307
$1.631.200
Potential Net Impact
$481,200
IFAZA
MEMORANDUM[
HOUSING
AND
REDEVELOPMENT
DATE: August 1, 1996
AUTHORITY
TO: William Burns, Executive Director of HRA,
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Review Proposed Strategy to Accomplish Multiple Family
Housing Goals
Introduction
As you know, in the 1996 and 1997 goals and objectives rehabilitating the city's
multiple family housing stock is identified as a high priority. A copy of the G & O's
are attached for your convenience. Among the work activities is to start identifying
properties in need of substantial rehabilitation. In addition, staff is to determine
potential improvements, review housing needs outlined in the Housing Action Plan,
and evaluate the level of financial involvement.
In the last couple of weeks we have started the process of identifying potential
properties in need of significant rehabilitation. In conjunction with this activity we
have started to research potential funding sources and have talked with one non - profit
housing developer about their experience and interest.
The purpose of this memo is to outline the several issues which should be addressed
by the HRA and Council before embarking on such a project. Additional information
will be provided at the HRA meeting on August 8, 1996.
Background
The HRA in cooperation with CEE administer two low- interest loans (financed through
Minnesota Housing Finance Agency and the Department of Public Service) to rental
property owners. In general these programs cover mid -level repairs and
improvements up to $10,000 /unit or $100,000 /building. The HRA has also budgeted
�.
Multiple Family Housing Memo
August 1, 1996
Page 2
funds for deferred loans which can be used as a last resort when no other financing
is available.
In addition to the HRA's financing programs, the Fridley Fire Department is in the
second year of the rental inspections program. Under the program, all rental units
are licensed on an annual basis and inspected once every four years or when
complaints are received. To date the program seems to be working, but the
emphasis is still focused on basic code issues. This program does not address the
attractiveness of a property nor its marketability.
Issues
Although many rental properties are in decent condition and properly maintained,
there are several properties which have fallen into disrepair. It's clear that these
properties do impact surrounding neighborhoods and the larger community. Below is
a brief list of the issues that should be considered.
1) How much rehabilitation is required? Are basic code repairs and
cosmetic improvements enough? Is it appropriate to consolidate units and
decrease density? Should amenities and other building features which impact
long -term marketability be considered?
2) How should the management of a property and owner's motivations be
evaluated?
3) Is there a role for the City or HRA to play in facilitating a positive change
for these properties? If so, to what extent is the public sector involved
in the financial and management aspects of these properties?
4) Since it is impossible to improve every building which property becomes the
the priority?
5) How do these efforts tie-in with the issues identified in the Housing Action Plan
for both affordable and market -rate housing?
6) What happens if the City or HRA does nothing and relies on the private sector
to address severely distressed multiple family housing?
Focus Areas
There are several geographic areas in need of attention. Attached is a map showing
Multiple Family Housing Memo
August 1, 1996
Page 3
the general locations. At this point these areas have been identified only from exterior
conditions. In general, the buildings share several characteristics, namely:
* Older buildings constructed in the late 1950's or early 1960's. Most are in poor
condition and showing signs of exterior deterioration resulting from deferred
maintenance. Typical conditions include:
- Rotted windows and doors.
- Peeling paint or cracking stucco.
- Spalling brick and /or missing mortar.
- Rusted flashing, vent jacks, gutters and downspouts.
- Unpaved or deteriorated parking areas and sidewalks.
- Inadequate lighting and signage.
- Inadequate surface parking and garages.
- Rubbish in yard.
- Lack of landscaping and natural vegetation.
* Primarily 1 and 2 bedroom units.
* Few amenities such as balconies, children's play areas, green space, etc.
* Some buildings have flat roof designs which create an institutional appearance
as opposed to a residential look.
* In some instances, owners have not cooperated with the city's rental inspection
requirements.
Action Steps
As mentioned above, staff has identified five geographic areas where there are
deteriorated multiple family buildings. At this point, no costs have been
identified, nor have owners been contacted regarding their participation.
In the next two months staff will carry out the following activities:
1) Begin soliciting owner participation.
2) Develop a continuum of options on public involvement.
Multiple Family Housing Memo
August 1, 1996
Page 4
3) Hire Gar Hargens, Close & Associates to evaluate rehabilitation options,
exterior design issues and related site improvements. There is a small amount
of money ($1,200) remaining on the Close & Associates contract which could
be used for this purpose.
4) Contact non - profits and other housing service providers to explore the link
between housing and social services. On July 25, 1996 staff met with Doug
Mayo from Common Bond to discuss project ideas. Common Bond has
considerable experience in the field of affordable multiple family housing.
Mayo was very interested in working with the HRA and indicated that they have
worked on similar projects in Crystal and Minneapolis. As a side note,
non - profits can be very helpful for these types of projects because of the wide
array of resources they can provide such as access to private foundations for
funding, tenant service programs, ability to oversee a project from start to finish
and property management. Finally, experienced non - profits can bring
credibility to a project, especially in the eyes of funding providers such as
HUD and MHFA.
5) Look at other communities to find similar projects and the extent of public and
private involvement.
Recommendation
No action is needed at this time. Unless otherwise directed staff will pursue the
action steps outlined and provide progress reports in the next 2 to 3 months.
GF/
M -96 -361
NN
City of Fridley BUDGET 1 996
State of Minnesota
Fund
262 - Housing Coordinator Fund
Department
08 Community Develo ment
Division
Housing
OBJECTIVES /ACTIVITIES
PERFORMANCE
MEASURES
UNITS
COSTS/
'EXPLANATION
BUDGET
„IMPACT`
— Anoka County Community Action
Program (ACCAP)
— Consultants or contract employees;
— Temporary, part—time HRA
employees.
OBJECTIVE #2:
I
To increase the level of participation in the
multiple — family housing rehabilitation
program.
ACTIVITIES:
i
2a. Adjust programs as needed as a May 1995
HRA Budget
Absorbed
result of focus groups.
2b. Conduct marketing effort:
— Hyde Park June 1995
HRA Budget
$1,000
— Target neighborhood from May 1996
HRA Budget
Absorbed
redevelopment plan.
2c. Consider policy for public or non— Jurie 1995
HRA and City Budget
Possible Losses
profit ownership of multiple — family
rental property.
of Tax
Revenue
— Use models identified in Southwest
Quadrant analysis to evaluate target
neighborhood from redevelopment
plan.
— Evaluate use of non — profit
ownership.
2d. Establish new program to help March 1996
multiple family owners with refinancing
HRA Budget
New Money
and rehabilitation.
2e. Expand the number of financial
institutions providing loans:
— Center for Energy and the May 1995
HRA Budget
Absorbed
Environment
— Major banks March 1996
HRA Budget
Absorbed
— Smaller sized banks April 1995
HRA Budget
Absorbed
2f. Conduct customer service surveys June and December
HRA Budget
Absorbed
with owners. 1996
City of Fridley
State of Minnesota
BUDGET 1997
C:nnk and C)hiPCtivoc
Fund !
262 ' Housing Coordinator Fund
Department
08 —Community Develo ment
Division
Housing
PERFORMANCE!
COSTS/
BUDGET
OBJECTIVES /ACTIVITIES
MEASURES
UNITS
EXPLANATION
IMPACT
ACTIVITIES:
5a. Evaluate 1996 fair and revise format
May 1996
HRA Budget
Absorbed
as necessary.
5b. Contact adjacent communities.
i
July 1996
HRA Budget
Absorbed
5c. Formulate committee.
August 1996
HRA Budget
Absorbed
5d. Identify and reserve location.
September 1996
HRA Budget
Absorbed
5e. Conduct fair.
March 1997
HRA Budget
Absorbed
OBJECTIVE #6:
To rehabilitate the most severely
deteriorated multi — family buildings.
ACTIVITIES:
6a. Identify properties in need of
November 1996
HRA Budget
Absorbed
significant renovation.
6b. Identify improvements to be completed
January 1997
HRA Budget
Absorbed
on the structures, including code — related
items, and exterior design /appearance,
and size of the units (i.e., number of
bedrooms).
6c. Review outcome of Housing Action
March 1997
HRA Budget
Absorbed
Plan to access market demand
characteristics for multi — family units.
6d. Evaluate the level of financial
April 1997
HRA Budget
Absorbed
involvement and the method of providing
the assistance.
6e. Work with property owners to
May 1997
HRA Budget
Absorbed
determine willingness to participate.
6f. Identify other potential sources for
June 1997
HRA Budget
New Money
funding rehabilitation work and submit
$500,000
appropriate applications.
6g. Implement project
August 1997
HRA Budget
Absorbed
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MEMORANDUM
HOUSING
1
REDEVELOPMENT
AUTHORITY
DATE: August 1, 1996
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Update on Hyde Park Activities
On July 17, 1996 a remodeling tour and barbecue was held at Skyline Park in the
Hyde Park neighborhood. The purpose of the event was to celebrate the success of
our housing program efforts in the neighborhood and bring the residents together for
an evening of fun. Approximately 50 to 75 people attended the event and
representatives from the City Council and several city departments were in
attendance.
The event seemed to be well received and most of the feedback was positive.
Several questions were raised about the status of the Frank's Used Car site and some
people had concerns about more property - specific matters. A copy of the tour
program is attached.
GF/
M -96 -360
Charles and Coni Olson, who live at 5917 3rd Street NE, have completed major remod-
eling to there property both inside and out. They remodeled the kitchen, master bed-
room and also had new windows and new siding put up. Approximate cost $30,000.
Coni Olson -- "I thought it (Hyde Park Loan Program) was unbelievable. I've
told everyone about it. We were planning on moving out of the
neighborhood, but decided that if we could fix up the master bed-
room and kitchen, our house would be like the houses we would
have moved into. We are very, very, pleased."
Sponsored by the City of Fridley and Housing and Redevelopment Authority
Welcome to the Hyde Park
Neighborhood Remodeling Tour !!
Below is a sampling of properties that have utilized the Hyde Park Home Improvement Program. To
date, there have been a total of 14 properties in the Hyde Park Neighborhood that have completed
improvements for a total dollar value in excess of $145,000.
The Hyde Park Home Improvement Program is a unique opportunity for property owners to finance
improvements to their properties. If you would like to find out more on how you can take advantage
of this rare opportunity, please contact the Center for Energy and Environment at 348 -2582.
Thank you for attending the Hyde Park Neighborhood Remodeling Tour.
Address: 6060 3rd Street NE
Improvements: New exterior doors, basement ceiling, Driveway,
Sidewalk, steps and landscaping. Approximate cost
$7,000.
Julie Hughes --
"I thought it was a good program. City staff was
very helpful."
Address: 5815 2nd Street NE
Improvements: New fences and trees. Approximate cost $2,500.
Bruce Lundberg -- "I couldn't have done the improvements without
the program."
Address: 5846 21/2 Street NE, 6 unit rental property
Improvements: Complete remodeling of the interior of the building.
Approximate cost $20,000.
Kathy Roesler -- "I verbalize to everyone that they should do it. I
wish more people in Hyde Park would take
advantage of this loan program."
Address: 5848 2nd Street NE
Improvements: New driveway and new windows. Approximate cost
$13,000
r7,1
NEW HOME
Address: 5973 3rd Street NE
Developer: Tams, Inc.
Features: Split entry design with 924 sq. ft. on upper level and 900 sq.
ft. on lower level (unfinished). Two car garage.
Price: mid $90's
Status: For sale, contact realtor
MR$$$
.$
Address: 5973 3rd Street NE
Developer: Tams, Inc.
Features: Split entry design with 924 sq. ft. on upper level and 900 sq.
ft. on lower level (unfinished). Two car garage.
Price: mid $90's
Status: For sale, contact realtor
Draft: Julv 23, 1996
CONTRACT
FOR
PRIVATE REDEVELOPMENT
By and Between
THE HOUSING AND REDEVELOPMENT AUTHORITY
In and For
THE CITY OF FRIDLEY, MINNESOTA
0
PATRICIA G. PARASCHUK
This document was drafted by:
Casserly Law Office, P.A.
Suite 1100 Southpoint Office Center
1650 West 82nd Street
Minneapolis, Minnesota 55431
TABLE OF CONTENTS
ARTICLE I
Definitions
Section 1.1 Definitions
ARTICLE II
Representations and Warranties
Section 2.1 Representations by the Authority
Section 2.2 Representations and Warranties by the
Redeveloper
ARTICLE III
Undertakings of Authority and Redeveloper
Section 3.1 Loan to Redeveloper for Site Improvements
Section 3.2 Limitations on Undertaking of the City
Section 3.3 Conditions Precedent to Authority Loan
ARTICLE IV
Construction of Minimum Improvements
Section 4.1 Construction of Minimum Improvements
Section 4.2 Completion of Construction
Section 4.3 Certificate of Completion
ARTICLE V
Events of Default
Page
3
5
11
I
11
11
11
Section
5.1
Events of Default Defined
13
Section
5.2
Remedies on Default
Section
5.3
No Remedy Exclusive
14
Section
5.4
No Implied Waiver
14
Section
5.5
Agreement to Pay Attorney's Fees and Expenses
14
14
ARTICLE VI
Prohibitions Against Assignment and Transfer
Section 6.1 Representation as to Redevelopment 15
Section 6.2 Prohibition Against Transfer of Property
and Assignment of Agreement 15
ARTICLE VII
Additional Provisions
Section
7.1
Conflict of interests
16
Section
7.2
Restrictions on Use
16
Section
7.3
Titles of Articles and Sections
16
Section
7.4
Notices and Demands
16
Section
7.5
Indemnification of Authority
17
Section
7.6
Counterparts
17
Section
7.7
Law Governing
17
Section
7.8
Expiration
17
Section
7.9
Provisions Surviving Rescission
21
SCHEDULE
A
or Expiration
17
ARTICLE VIII
Mortgage Financin
Section
8.1
Limitation Upon Encumbrance of Property
18
Section
8.2
Approval of Mortgage
18
Section
8.3
Notice of Default; Copy to Mortgagee
19
Section
8.4
Mortgagee's Option to Cure Defaults
19
Section
8.5
Authority's Option to Cure Default on
Mortgage
19
Section
8.6
Subordination and Modification for the
Benefit of Mortgagees
20
SIGNATURES
21
SCHEDULE
A
Description of Redevelopment Property
23
SCHEDULE
B
Site Improvements
24
SCHEDULE
C
Certificate of Completion
25
SCHEDULE
D
Note
27
SCHEDULE
E
Authority Mortgage
30
SCHEDULE
F
Permitted Encumbrances
34
CONTRACT FOR PRIVATE REDEVELOPMENT
THIS AGREEMENT, made on or as of the day of
199_ by and between the Housing and Redevelopment Authority in
and for the City of Fridley, Minnesota (the "Authority "), a
political subdivision of the State of Minnesota organized under
the Constitution and laws of the State of Minnesota and Patricia
G. Paraschuk (the "Redeveloper "),
WITNESSETH:
WHEREAS, the Board of Commissioners (the "Board ") of the
Authority has determined that there is a need for development and
redevelopment within the corporate limits of the City to provide
employment opportunities, to provide adequate housing in the
City, including low and moderate income housing and housing for
the elderly, to improve the tax base and to improve the general
economy of the City and the State of Minnesota;
WHEREAS, in furtherance of these objectives, the Authority
has adopted, pursuant to Minnesota Statutes, Sections 469.001 et
seg. (the "Act "), the development program known as the Modified
Redevelopment Plan (the "Redevelopment Plan ") and established
Redevelopment Project No. 1 (the "Project Area ") in the City to
encourage and provide maximum opportunity for private development
and redevelopment of certain property in the City which is not
now in its highest and best use;
WHEREAS, major objectives in establishing the Project Area
are to:
1. Promote and secure the prompt redevelopment of certain
property in the Project Area, which property is not now in its
highest and best use in a manner consistent with the City's
Comprehensive Plan and with a minimum adverse impact on the
environment, and thereby promote and secure the redevelopment of
other land in the City.
2. Provide additional employment opportunities within the
Project Area and the City for residents of the City and the
surrounding area, thereby improving living standards, reducing
unemployment and the loss of skilled and unskilled labor and
other human resources in the City.
1
3. Prevent the deterioration and secure the increase of
commercial /industrial property subject to taxation by the City,
the Independent School Districts, the County, and the other
taxing jurisdictions in order to better enable such entities to
pay for governmental services and programs required to be
provided by them.
4. Provide for the financing and construction for public
improvements in and adjacent to the Project Area necessary for
the orderly and beneficial redevelopment of the Project Area and
adjacent areas of the City.
5. Promote the concentration of new desirable industrial,
office, and other appropriate redevelopment in the Project Area
so as to maintain the area in a manner compatible with its
accessibility and prominence in the City.
6. Encourage local business expansion, improvement, and
redevelopment, whenever possible.
7. Create a desirable and unique character within the
Project Area through quality land use alternatives and design
quality in new or remodeled buildings.
8. Encourage and provide maximum opportunity for private
redevelopment of existing areas and structures which are
compatible with the Project Area; and
WHEREAS, in order to achieve the objectives of the Authority
and City in creating the Project Area the Authority is prepared
to acquire that certain real property located in the Project Area
(such real property is more particularly described in Schedule A
to this Agreement) and to convey said real property to the
Redeveloper for development and redevelopment in accordance with
this Agreement; and
WHEREAS, the Authority believes that the development and
redevelopment of the Redevelopment Property pursuant to this
Agreement, and fulfillment generally of the terms of this
Agreement, are in the vital and best interests of the Authority
and the health, safety, morals and welfare of its residents, and
in accord with the public purposes and provisions of applicable
federal, state and local laws under which the development and
redevelopment are being undertaken and assisted;
NOW, THEREFORE, in consideration of the premises and the
mutual obligations of the parties hereto, each of them does
hereby covenant and agree with the other as follows:
2
ARTICLE I
Definitions
Section 1.1 Definitions. In this Agreement, unless a
different meaning clearly appears from the context:
"Act" means Minnesota Statutes, Section 469.001 et sue.
"Agreement" means this Agreement, as the same may be from
time to time modified, amended, or supplemented.
"Authority" means the Housing and Redevelopment Authority in
and for the City of Fridley, Minnesota.
"Authority Mortgage" means a mortgage which is secured by
the Redevelopment Property, the form of which is attached hereto
as Schedule E and may be subordinate to the Mortgage.
"Certificate of Completion" means the certification, in the
form of the certificate contained in Schedule C attached to and
made a part of this Agreement, provided to the Redeveloper,
pursuant to Section 4.3 of this Agreement.
"City" means the City of Fridley, Minnesota.
"Construction Plans" means the plans, specifications,
drawings and related documents on the construction work to be
performed by the Redeveloper on the Redevelopment Property which
(a) shall be as detailed as the plans, specifications, drawings
and related documents which are submitted to the building
inspector or the City, and (b) shall include at least the
following for each building: (1) site plan; (2) foundation plan;
1.3) basement plans; ( 4 ) floor plan for each floor; ( 5 ) cross
sections of each (length and width); (6) elevations (all sides,
except as to a side of existing structure where no construction
is to take place); (7) facade and landscape plan; and (8) such
other plans of supplements to the foregoing plans as the City may
reasonably request.
"Council" means the Council of the City.
"County" means the County of Anoka, Minnesota.
"Holder" means the owner of a Mortgage.
"Minimum Improvements" means the construction of a 30,000
square foot office warehouse constructed with Fab -Con
prefabricated concrete tip -up panels. The facility will contain
approximately 5,000 square feet of office space and 25,000 square
feet of warehouse space.
3
"Minnesota Environmental Policy Act" means the statutes
located at Minnesota Statutes, Sections 116D.01 et seq., as
amended.
"Minnesota Environmental Rights Act" means the statutes
located at Minnesota Statutes, Sections 116B.01 et se ., as
amended.
"Mortgage" means any mortgage or security agreement in which
the Redeveloper has granted a security interest in the
Redevelopment Property, or any portion thereof, or any
improvements constructed thereon, and which is a permitted
encumbrance pursuant to the provisions of Article VIII.
"National Environmental Policy Act" means the federal law
located at 42 U.S.C. Sub. Sect. 4331 et seQ., as amended.
"Note" means the note in the principal amount of Eighty Five
Thousand and no /hundredths Dollars ($85,000) or the cost of the
Site Improvements, whichever is less, substantially in the form
of Schedule D attached to this Agreement, and to be made by the
Redeveloper payable to the order of the Authority in accordance
with the terms of this Agreement. If the Note principal is less
than $85,000, then the Payment Schedule attached as Exhibit A to
the Note shall be reduced proportionately.
"Permitted Encumbrances" means the encumbrances described on
Schedule F to this Agreement.
"Project Area" means Redevelopment Project No. 1, as
amended, established in accordance with the Act.
"Redeveloper" means Patricia G. Paraschuk.
"Redevelopment Plan" means the modified redevelopment plan
adopted by the Authority for its Redevelopment Project No. 1, as
amended.
"Redevelopment Project" means the Redevelopment Property and
the Minimum Improvements.
"Redevelopment Property" means the real property described
in Schedule A of this Agreement.
"Site Improvements" means those costs described on Schedule
B as qualified improvements of the Redevelopment Property.
"State" means the State of Minnesota.
"Unavoidable Delays" means delays which are the direct
result of strikes, delays which are the direct result of
unforeseeable and unavoidable casualties to the Minimum
4
Improvements, the Redevelopment Property or the equipment used to
construct the Minimum Improvements, delays which are the direct
result of governmental actions, delays which are the direct
result of judicial action commenced by third parties, citizen
opposition or action affecting this Agreement or adverse weather
conditions or acts of God.
61
ARTICLE II
Representations and Warranties
Section 2.1 Representations by the Authority. The Authority
makes the following representations as the basis for the
undertaking on its part herein contained:
(a) The Authority is a public body duly organized and
existing under the laws of the State. Under the provisions of
the Act, the Authority has the power to enter into this Agreement
and carry out its obligations hereunder.
(b) The Authority has approved the Redevelopment Plan in
accordance with the terms of the Act.
(c) To finance the costs of the activities to be undertaken
by the Redeveloper, the Authority proposes, in accordance with
the provisions of this Agreement, to loan to the Redeveloper the
Note principal for Site Improvements.
(d) The Authority will cooperate with the Redeveloper with
respect to any litigation commenced by third parties in
connection with this Agreement.
Section 2.2 Representations and Warranties by the
Redeveloper. The Redeveloper represents and warrants that:
(a) The Redeveloper will construct, operate and maintain
the Minimum Improvements in accordance with the terms of this
Agreement, the Redevelopment Plan and all local, state and
federal laws and regulations (including, but not limited to,
environmental, zoning, building code and public health laws and
regulations).
(b) The Minimum Improvements will be an allowed used under
the zoning ordinance of the City.
(c) As of the date of execution of this Agreement, the
Redeveloper has received no notice or communication from any
local, state or federal official that the activities of the
Redeveloper or the Authority in the Project Area may be or will
be in violation of any environmental law or regulation.
As of the date of execution of this Agreement, the Redeveloper is
aware of no facts, the existence of which would cause it to be in
violation of any local, state or federal environmental law,
regulation or review procedure or which would give any person a
valid claim under the Minnesota Environmental Rights Act.
I
(d) The Redeveloper will use its best efforts to obtain, in
a timely manner, all required permits, licenses and approvals,
and will meet, in a timely manner, all requirements of all
applicable local, state and federal laws and regulations which
must be obtained or met before the Minimum Improvements may be
lawfully constructed.
(e) The Redeveloper agrees that it will cooperate with the
Authority and shall indemnify the Authority against all costs,
including the costs of defense incurred by the Authority through
an attorney of its choosing, with respect to any litigation
commenced by third parties in connection with this Agreement.
(f) The financing arrangements which the Redeveloper has
obtained or will obtain, to finance acquisition or construction
of the Minimum Improvements, together with financing provided by
the Authority pursuant to this Agreement, will be sufficient to
enable the Redeveloper to successfully complete the Minimum
Improvements as contemplated in this Agreement.
(g) The construction of the Minimum Improvements, in the
opinion of the Redeveloper, would not reasonably be.expected to
occur solely through private investment within the reasonably
foreseeable future without the use of tax increment financing
provided by the City pursuant to this Agreement.
(h) The Authority has provided to the Redeveloper, and the
Redeveloper acknowledges receipt of, a copy of Laws of Minnesota
for 1995, Chapter 224, Section 58, to be codified in Minnesota
Statutes, Section 116J.991, and entitled "Public Assistance to
Business; Wage and Job Requirements," requiring that within 2
years of receiving the assistance provided pursuant to this
Agreement, which for this purpose shall be deemed to be the 2
year period beginning on the date the Certificate of Completion
is issued in accordance with Section 4.3, the Redeveloper shall
comply with certain jobs and other obligations stated in the
above- mentioned statute. The Redeveloper hereby covenants to
comply with said obligations, and the Parties agree that said
goal level shall be the creation of 2 jobs within the applicable
2 year period. The Redeveloper acknowledges and agrees that, as
required by this statutory provision, failure to meet said goals
will result in an Event of Default hereunder and in an obligation
of the Redeveloper to repay all of the assistance provided
pursuant to this Agreement. The Redeveloper further agrees that
said jobs shall have an hourly wage of at least $14.00 per hour.
This subparagraph shall not be construed as imposing on the
Redeveloper any obligation beyond the scope and purpose of the
above - mentioned statute to maintain or provide minimum employment
and wage levels. The Redeveloper further agrees to provide to
the Authority in a timely manner, or to the State of Minnesota,
as may be applicable, any information that is necessary to comply
with the above - mentioned statute.
(i) The Redeveloper shall not allow any use or occupancy of
the Redevelopment Property or Minimum Improvements by a "Sexually
Oriented Business" as defined in Ordinance No. 965 of the City's
Code.
8
ARTICLE III
Undertakings of Authority and Redeveloper
Section 3.1 Loan to Redeveloper for Site Improvements. As
consideration for the execution of this Agreement and the
construction of the Minimum Improvements by the Redeveloper,
subject to the further provisions of this Agreement, the
Authority agrees to loan to the Redeveloper for Site Improvements
the Note principal as provided in Section 3.3 and Article VIII.
Section 3.2 Limitations on Undertaking of the City.
(1) The Authority shall have no obligation to the
Redeveloper under this Agreement to loan the Note principal to
the Redeveloper for the Site Improvements if the Authority, at
the time the loan is to be made is entitled under Section 5.2 to
exercise any of the remedies set forth therein as a result of an
Event of Default which has not been cured. If the Authority has
not exercised its remedies under Section 5.2(b) and if the loan
is withheld due to an Event of Default which is later cured, such
loan shall be made after such Event of Default has been cured.
(2) The Authority shall have no obligation to loan the Note
principal to the Redeveloper for the Site Improvements unless the
Redeveloper has submitted to the Authority the original purchase
agreement whereby it acquired the Redevelopment Property from
and invoices for the Site Improvements along
with a certification signed by the Redeveloper's project
supervisor to the effect that the costs for which payment was
made have been incurred in connection with construction documents
previously reviewed by the Authority. The Redeveloper shall also
provide lien waivers from the contractors, subcontractors and /or
construction managers for the Site Improvements. The Authority
shall indicate its acceptance of the amounts for the loan,
assuming the conditions of this section have been complied with
and there is no Event of Default, when it issues a Certificate of
Completion in accordance with Section 4.3.
Section 3.3 Conditions Precedent to Authority Loan. The
Authority's obligation to loan the Note principal in accordance
with Section 3.1 shall be contingent upon the satisfaction by the
Redeveloper of the following conditions precedent:
(a) The Redeveloper shall be in material compliance with
all of the terms and provisions of this Agreement.
(b) The Redeveloper shall have received a Certificate of
Completion from the Authority, pursuant to Section 4.3 of this
Agreement.
4
(c) There shall have been obtained from the City all
special use permits and zoning approvals necessary for the
construction of the Minimum Improvements.
(d) That the Redeveloper shall be in compliance with all
ordinances of the City.
(e) The execution by the Redeveloper of the Note attached
as Schedule D.
(f) The execution by the Redeveloper of the Authority
Mortgage attached as Schedule E.
10
ARTICLE IV
Construction of Minimum Improvements
Section 4.1 Construction of Minimum Improvements. The
Redeveloper agrees that it will construct the Minimum
Improvements on the Redevelopment Property in accordance with the
Construction Plans approved by the City.
Section 4.2 Completion of Construction. Subject to
Unavoidable Delays, the Redeveloper shall achieve substantial
completion of the construction of the Minimum Improvements by
December 31, 1996. All work with respect to the Minimum
Improvements to be constructed or provided by the Redeveloper on
the Redevelopment Property shall be in conformity with the
Construction Plans.
The Redeveloper agrees for itself, its successors and
assigns, and every successor in interest to the Redevelopment
Property, or any part thereof, that the Redeveloper, and such
successors and assigns, shall diligently prosecute to completion
the development of the Redevelopment Property through the
construction of the Minimum Improvements thereon, and that such
construction shall in any event be completed within the period
specified in this Section 4.2 of this Agreement.
Section 4.3 Certificate of Completion.
(a) Promptly after substantial completion of the Minimum
Improvements in accordance with those provisions of the Agreement
relating to the obligations of the Redeveloper to construct the
Minimum Improvements (including the date for completion thereof),
the Authority will furnish the Redeveloper with an appropriate
instrument so certifying. Such certification by the Authority
shall be (and it shall be so provided in the certification
itself) a conclusive determination of satisfaction and
termination of the agreements and covenants in the Agreement with
respect to the obligations of the Redeveloper, and its successors
and assigns, to construct the Minimum Improvements and the date
for the completion thereof.
(b) If the Authority shall refuse or fail to provide any
certification in accordance with the provisions of this Section
4.3 of this Agreement, the Authority shall, within ten (10) days
after written request by the Redeveloper, provide the Redeveloper
with a written statement, indicating in adequate detail in what
respects the Redeveloper has failed to complete the Minimum
Improvements in accordance with the provisions of the Agreement,
or is otherwise in default, and what measures or acts it will be
necessary, in the opinion of the Authority, for the Redeveloper
to take or perform in order to obtain such certification.
11
(c) The construction of the Minimum Improvements shall be
deemed to be substantially completed when the Redeveloper has
received an occupancy permit from the City's building inspector,
which permit shall not be unreasonably withheld.
12
ARTICLE V
Events of Default
Section 5.1 Events of Default Defined. The following shall
be "Events of Default" under this Agreement and the term "Event
of Default" shall mean whenever it is used in this Agreement any
one or more of the following events:
(a) Failure by the Redeveloper to timely pay all ad valorem
real property taxes assessed with respect to the Redevelopment
Property.
(b) Failure by the Redeveloper to complete the Minimum
Improvements pursuant to the terms, conditions and limitations of
this Agreement.
(c) The holder of any mortgage on the Redevelopment
Property or any improvements thereon, or any portion thereof,
commences foreclosure proceedings as a result of any default
under the applicable mortgage documents.
(d) Failure by the Redeveloper to substantially observe or
perform any other covenant, condition, obligation or agreement on
its part to be observed or performed under this Agreement.
(e) If the Redeveloper shall
(A) file any petition in bankruptcy or for any
reorganization, arrangement, composition, readjustment,
liquidation, dissolution, or similar relief under the United
States Bankruptcy Act of 1978, as amended or under any
similar federal or state law; or
(B) make an assignment for the benefit of their
creditors; or
(C) admit in writing their inability to pay their
debts generally as they become due; or
(D) be adjudicated as bankrupt or insolvent; or if a
petition or answer proposing the adjudication of the
Redeveloper, as bankrupt or its reorganization under any
present or future federal bankruptcy act or any similar
federal or state law shall be filed in any court and such
petition or answer shall not be discharged or denied within
ninety (90) days after the filing thereof; or a receiver,
trustee or liquidator of the Redeveloper, or if the Minimum
Improvements, or part thereof, shall be appointed in any
proceeding brought against the Redeveloper, and shall not be
discharged within ninety (90) days after such appointment,
13
or if the Redeveloper shall consent to or acquiesce in such
appointment.
Section 5.2 Remedies on Default. Whenever any Event of
Default referred to in Section 5.1 occurs and is continuing, the
Authority, as specified below, may take any one or more of the
following actions after providing thirty (30) days' written
notice to the Redeveloper, but only if the Event of Default has
not been cured within said thirty (30) days.
(a) The Authority may suspend its performance under this
Agreement until it receives assurances from the Redeveloper,
deemed adequate by the Authority, that the Redeveloper will cure
its default and continue its performance under this Agreement.
(b) The Authority may cancel and rescind the Agreement.
(c) Withhold the Certificate of Completion.
Section 5.3 No Remedy Exclusive. No remedy herein conferred
upon or reserved to the Authority is intended to be exclusive of
any other available remedy or remedies, but each and every such
remedy shall be cumulative and shall be in addition to every
other remedy given under this Agreement or now or hereafter
existing at law or in equity or by statute. No delay or omission
to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a
waiver thereof, but any such right and power may be exercised
from time to time and as often as may be deemed expedient.
Section 5.4 No Implied Waiver. In the event any agreement
contained in this Agreement should be breached by any party and
thereafter waived by any other party, such waiver shall be
limited to the particular breach so waived and shall not be
deemed to waive any other concurrent, previous or subsequent
breach hereunder.
Section 5.5 Agreement to Pav Attorney's Fees and Expenses.
Whenever any Event of Default occurs and the Authority shall
employ attorneys or incur other expenses for the collection of
payments due or to become due or for the enforcement or
performance or observance of any obligation or agreement on the
part of the Redeveloper herein contained, the Redeveloper agrees
that it shall, on demand therefor, pay to the Authority the
reasonable fees of such attorneys and such other expenses so
incurred by the Authority.
14
ARTICLE VI
Prohibitions Against Assignment and Transfer
Section 6.1 Representation as to Redevelopment. The
Redeveloper represents and agrees that its purchase of the
Redevelopment Property, and its other undertakings pursuant to
this Agreement, are, and will be used, for the purpose of
redevelopment of the Redevelopment Property and not for
speculation in land holding. The Redeveloper further recognizes
that, in view of (a) the importance of the redevelopment of the
Redevelopment Property to the general welfare of the Authority,
and (b) the substantial financing that has been made available by
the Authority for the purpose of making such redevelopment
possible, the qualifications and identity of the Redeveloper are
of particular concern to the Authority. The Redeveloper further
recognizes that it is because of such qualifications and identity
that the Authority is entering into this Agreement with the
Redeveloper, and, in so doing, is further willing to accept and
rely on the obligations of the Redeveloper for the faithful
performance of all undertakings and covenants hereby by it to be
performed.
Section 6.2 Prohibition Against Transfer of Property and
Assignment of Agreement. Also, for the foregoing reasons the
Redeveloper represents and agrees that prior to the date of
expiration as provided in Article VII, except for the purpose of
obtaining financing necessary to enable the Redeveloper or any
successor in interest to the Redevelopment Property, or any part
thereof, to perform its obligations with respect to making the
Minimum Improvements under this Agreement, and any other purpose
authorized by this Agreement, the Redeveloper has not made or
created and will not make or create or suffer to be made or
created any total or partial sale, assignment, conveyance, or
lease, or any trust or power, or transfer in any other mode or.
form of or with respect to this Agreement or the Redevelopment
Property or any part thereof or any interest therein, or any
contract or agreement to do any of the same, without the prior
written approval of the Authority which shall not be unreasonably
withheld unless the Redeveloper remains liable and bound by this
Redevelopment Agreement in which event the Authority's approval
is not required. Any such transfer shall be subject to the
provisions of this Agreement. Notwithstanding the foregoing, the
Redeveloper may transfer the Redevelopment Property to any
corporation controlling, controlled by, or under common control
with the Redeveloper or to any corporation or entity controlled
by the Redeveloper.
15
ARTICLE VII
Additional Provisions
Section 7.1 Conflict of Interests. No member, official, or
employee of the Authority shall have any personal interest,
direct or indirect, in the Agreement, nor shall any such member,
official or employee participate in any decision relating to the
Agreement which affects his personal interests or the interests
of any corporation, partnership, or association in which he is,
directly or indirectly, interested.
Section 7.2 Restrictions on Use. The Redeveloper shall not
discriminate upon the basis of race, color, creed, sex or
national origin in the sale, lease, or rental or in the use or
occupancy of the Redevelopment Property or any improvements
erected or to be erected thereon, or any part thereof.
Section 7.3 Titles of Articles and Sections. Any titles of
the several parts, Articles and Sections of the Agreement are
inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 7.4 Notices and Demands. Except as otherwise
expressly provided in this Agreement, a notice, demand, or other
communication under this Agreement by either party to the other
shall be sufficiently given or delivered if it is dispatched by
registered or_ certified mail, postage prepaid, return receipt
requested, transmitted by facsimile, delivered by a recognized
overnight courier or delivered personally; and
(a) in the case of the Redeveloper, is addressed to or
delivered personally to the mailing or delivery address the
Redeveloper will, from time to time, furnish to the Authority.
The Redeveloper's current address is as follows:
Patricia G. Paraschuk
4615 Humboldt Avenue North
Minneapolis, Minnesota 55412
Fax: 612/521 -3802
(b) in the case of the Authority, is addressed to or
delivered personally to:
Housing and Redevelopment Authority
in and for the City of Fridley
6431 University Avenue N.E.
Fridley, Minnesota 55432
Attention: Executive Director
Fax: 612/571 -1287
16
Section 7.5 Indemnification of Authority.
(1) The Redeveloper releases from and covenants and agrees
that the Authority, the City and its governing body members,
officers, agents, including the independent contractors,
consultants and legal counsel, servants and employees thereof
(hereinafter, for purposes of this Section, collectively the
"Indemnified Parties ") shall not be liable for and agrees to
indemnify and hold harmless the Indemnified Parties against any
loss or damage to property or any injury to or death of any
person occurring at or about or resulting from any defect in the
Minimum Improvements or the Redevelopment Property.
(2) Except for any willful misrepresentation or any willful
or wanton misconduct of the Indemnified Parties, the Redeveloper
agrees to protect and defend the Indemnified Parties, now and
forever, and further agrees to hold the aforesaid harmless from
any claim, demand, suit, action or other proceeding whatsoever by
any person or entity whatsoever arising or purportedly arising
from the actions or inactions of the Redeveloper (or if other
persons acting on its behalf or under its direction or control)
under this Agreement, or the transactions contemplated hereby or
the acquisition, construction, installation, ownership, and
operation of the Minimum Improvements or the Redevelopment
Property; provided, that this indemnification shall not apply to
the warranties made or obligations undertaken by the Authority in
this Agreement.
(3) All covenants, stipulations, promises, agreements and
obligations of the Authority contained herein shall be deemed to
be the covenants, stipulations, promises, agreements and
obligations of the Authority and not of any governing body
member, officer, agent, servant or employee of the Authority.
Section 7.6 Counterparts. This Agreement is executed in any
number of counterparts, each of which shall constitute one and
the same instrument.
Section 7.7 Law Governing. This Agreement will be governed
and construed in accordance with the laws of the State.
Section 7.8 Expiration. This Agreement shall expire when
the Note is paid in full.
Section 7.9 Provisions Surviving Rescission or Expiration.
Sections 5.5 and 7.5 shall survive any rescission, termination or
expiration of this Agreement with respect to or arising out of
any event, occurrence or circumstance existing prior to the date
thereof.
17
ARTICLE VIII
Mortgage Financing
Section 8.1 Limitation Upon Encumbrance of Property. Prior
to the completion of the Minimum Improvements, as certified by
the Authority, neither the Redeveloper nor any successor in
interest to the Redevelopment Property or any part thereof shall
engage in any financing or any other transaction creating any
mortgage or other encumbrance or lien upon the Redevelopment
Property, other than Permitted Encumbrances, whether by express
agreement or operation of law, or suffer any encumbrance or lien
to be made on or attach to the Redevelopment Property, other than
Permitted Encumbrances, except:
(a) For the purposes of obtaining funds only to the extent
necessary for financing of the Minimum Improvements including,
but not limited to, labor and materials, equipment, professional
fees, real estate taxes, construction interest, organizational
and other indirect costs of development, costs of constructing
the Minimum Improvements, an allowance for contingencies,
acquisition cost of the Redevelopment Property, costs of
originating the Mortgage and customary financing costs.
(b) Only upon the prior written approval of the Authority
in accordance with Sections 8.1 and 8.2.
The Authority shall not approve any Mortgage which does not
contain terms that conform to the terms of Section 8.5, except as
provided in Section 8.6 of this Agreement.
Section 8.2 Approval of Mortgage. The Authority shall
approve a Mortgage if:
(a) The Authority first receives a copy of all mortgage
documents.
(b) The Mortgage loan, together with other funds available
to the Redeveloper, will, in the reasonable judgment of the
Authority, be sufficient to construct the Minimum Improvements;
however, the Mortgage and Authority Mortgage shall not secure an
amount greater than 900 of the costs described in Section 8.1(a).
(c) The Authority is not entitled under Section 5.2 to
exercise any of the remedies set forth therein as a result of an
Event of Default.
(d) The Authority determines that the terms of the Mortgage
conform to the terms of Section 8.5.
However, the approval of a Mortgage by the Authority shall not be
18
unreasonably withheld. Any Mortgage which is subordinated to the
rights of the Authority under this Agreement may be granted in
all or any part of the Redevelopment Property without the
approval of the Authority.
Section 8.3 Notice of Default; Copy to Mortgagee. Whenever
the Authority shall deliver any notice or demand to the
Redeveloper with respect to any breach or default by the
Redeveloper in its obligations or covenants under this Agreement,
the Authority shall at the same time forward a copy of such
notice or demand to each Holder of any Mortgage authorized by
this Agreement at the last address of such Holder shown in the
records of the Authority.
Section 8.4 Mortgagee's Option to Cure Defaults. After any
breach or default referred to in Section 8.3, each such Holder
shall (insofar as the rights of the Authority are concerned) have
the right, at its option, to cure or remedy such breach or
default (or such breach or default to the extent that it relates
to the part of the Redevelopment Property covered by its
mortgage) and to add the cost thereof to the Mortgage debt and
the lien of its Mortgage; provided, however, that if the breach
or default is with respect to construction of the Minimum
Improvements, nothing contained in this Section or any other
Section of this Agreement shall be deemed to require such Holder,
either before or after foreclosure or action in lieu thereof, to
undertake or continue the construction or completion of the
Minimum Improvements, provided that any such Holder shall not
devote the Redevelopment Property to a use inconsistent with the
Redevelopment Plan or this Agreement without the agreement of the
Authority.
Section 8.5 Authority's Option to Cure Default on Mortgage.
Any Mortgage, unless such requirement is waived by the Authority,
executed by the Redeveloper with respect to the Redevelopment
Property or any improvements thereon shall provide that, in the
event that the Redeveloper is in default under any Mortgage
authorized pursuant to this Article VIII, the Holder shall notify
the Authority in writing of:
(a) The fact of the default.
(b) The elements of the default.
(c) The actions required to cure the default.
If the default is an "E -gent of Default" under such Mortgage,
which shall entitle such Holder to foreclose upon the
Redevelopment Property, the Minimum Improvements or any portion
thereof, and any applicable grace periods have expired, the
Authority shall have, and each Mortgage executed by the
Redeveloper with respect to the Redevelopment Property or any
19
improvements thereon shall provide that the Authority shall have
such an opportunity to cure the "Event of Default" within such
reasonable time period as the Holder shall deem appropriate.
Section 8.6 Subordination and Modification for the Benefit
of Mortgagees.
(a) In addition to the subordination of the Authority
Mortgage, in order to facilitate the obtaining of financing for
the construction of the Minimum Improvements by the Redeveloper,
the Authority agrees to subordinate its rights under this
Agreement to the Holder of a Mortgage for the purposes described
in Section 8.1(a) of this Agreement.
(b) In order to facilitate the obtaining of financing for
the construction of the Minimum Improvements, the Authority
agrees that it shall agree to any reasonable modification of this
Article VIII or waiver of its rights hereunder to accommodate the
interests of the Holder of a Mortgage, provided, however, that
the Authority determines, in its reasonable judgment, that any
such modification(s) will adequately protect the legitimate
interest and security of the Authority with respect to the
Redevelopment Property.
IN WITNESS WHEREOF, the Authority has caused this Agreement
to be duly executed in its name and behalf and the Redeveloper
has caused this Agreement to be duly executed as of the date
first above written.
20
Dated:
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF FRIDLEY, MINNESOTA
And by
STATE OF MINNESOTA )
ss
COUNTY OF ANOKA )
Its Chairman
Its Executive Director
On this day of , 199_ before me, a
notary public within and for Anoka County, personally appeared
and to me
personally known who by me duly sworn, did say that they are the
Chairman and Executive Director of the Housing and Redevelopment
Authority in and for the City of Fridley, Minnesota, a political
subdivision of the State of Minnesota, and acknowledged the
foregoing instrument on behalf of said Authority.
Notary Public
Authority Signature Page - Contract for Private Redevelopment
21
DATED:
PATRICIA G. PARASCHUK
STATE OF MINNESOTA )
)ss
COUNTY OF )
Patricia G. Paraschu
On this day of , 199_ before me, a
notary public within and for County, personally appeared
and acknowledged the foregoing instrument.
Notary Public
Redeveloper Signature Page - Contract for Private Redevelopment
22
SCHEDULE A
DESCRIPTION OF REDEVELOPMENT PROPERTY
Great Northern Industrial Center, Lot 1, Block 7, Anoka County,
Minnesota.
23
SCHEDULE B
SITE IMPROVEMENTS
Acquisition of Redevelopment Property
Mezzanine for additional storage space of 4,500 square feet
Centered windows to enhance appearance in front of building
Six (6) 16' x 18' overhead doors
24
SCHEDULE C
CERTIFICATE OF COMPLETION
WHEREAS, the Housing and Redevelopment Authority in and for
the City of Fridley, Minnesota, a Minnesota municipal corporation
(the "Authority ") and Patricia G. Paraschuk (the "Redeveloper ")
have entered into a Contract for Private Redevelopment (the
"Agreement ") dated as of , 199_, regarding certain
real property referred to in the Agreement as the "Redevelopment
Property" located in Redevelopment Project No. 1 in the City; and
WHEREAS, the Agreement contains certain conditions and
provisions requiring the Redeveloper to construct improvements
upon the Redevelopment Property (hereinafter referred to and
referred to in the Agreement as the "Minimum Improvements "); and
WHEREAS, Section 4.3 of the Agreement requires the Authority
to provide an appropriate instrument promptly after the
substantial completion (as defined in the Agreement) of the
Minimum Improvements so certifying said substantial completion;
NOW, THEREFORE, in compliance with said Section 4.3 of the
Agreement, this is to certify that the Redeveloper has
substantially completed the Minimum Improvements in accordance
with the conditions and provisions of the Agreement relating
solely to the obligations of the Redeveloper to construct the
Minimum Improvements (including the dates for beginning and
completion thereof), and this certification shall be a conclusive
determination of satisfaction and termination of the agreements
and covenants in the Agreement with respect to the obligations of
the Redeveloper, and its successors and assigns, to construct the
Minimum Improvements and the dates for the beginning and
completion thereof.
Dated: , 19
25
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF FRIDLEY, MINNESOTA
And by
STATE OF MINNESOTA )
ss
COUNTY OF ANOKA )
Its Chairman
Its Executive Director
On this day of , 199_ before me, a
notary public within and for Anoka County, personally appeared
and to me
personally known who by me duly sworn, did say that they are the
Chairman and Executive Director of the Housing and Redevelopment
Authority in and for the City of Fridley, Minnesota, a political
subdivision of the State of Minnesota, and acknowledged the
foregoing instrument on behalf of said Authority.
Notary Public
26
SCHEDULE D
NOTE
US $85,000.00
Fridley, Minnesota
FOR VALUE RECEIVED, the undersigned (the "Borrower ")
promises to pay to the Housing and Redevelopment Authority in and
for the City of Fridley, Minnesota (the "Note Holder "), or order
the principal sum of Eighty Five Thousand Dollars ($85,000.00)
with interest from November 1, 1996 on the unpaid principal
balance until paid, at the rate of 5% percent per annum, and with
payments due on the 1st day of each February and August in
installments set forth on the payment schedule attached as
Exhibit A. The entire unpaid principal balance together with
accrued interest shall be due in full on February 1, 2007.
Payments shall first be applied to interest with any excess
applied to principal. A late payment penalty of five
percent (50) shall be charged on any payments not received
at the mailing address designated by the Note Holder by 5:00
P.M. on the 15th day following the date on which the payment
is due; interest will be calculated based on a 360 day year
and charged on a per diem basis in each month.
Principal and interest shall be payable at the Fridley Housing
and Redevelopment Authority, 6431 University Avenue N.E.
Fridley, Minnesota, 55432 or such other place as the Note Holder
may designate.
If said installment under this Note is not paid when due and
remains unpaid after a date specified by a notice to Borrower,
which date shall not be less than thirty (30) days after the date.
such notice is mailed, the Note Holder may exercise this option
to accelerate during default by Borrower regardless of any prior
forbearance. If suit is brought to collect this Note, the Note
Holder shall be entitled to collect all reasonable costs and
expenses of suit, including, but not limited to, reasonable
attorney's fees.
Borrower may prepay the principal amount outstanding in
whole or in part. Any partial prepayment shall be applied
against the principal amount outstanding.
27
Exhibit A
Payment Schedule
February
1, 1999
6,759
August 1,
1999
6,759
February
1, 2000
6,759
August 1,
2000
6,759
February
1, 2001
6,759
August 1,
2001
6,759
February
1, 2002
6,759
August 1,
2002
6,759
February
1, 2003
6,759
August 1,
2003
6,759
February
1, 2004
6,759
August 1,
2004
6,759
February
1, 2005
6,759
August 1,
2005
6,759
February
1, 2006
6,759
August 1,
2006
6,759
February
1, 2007
6,759
29
SCHEDULE E
AUTHORITY MORTGAGE
This Indenture, made this day of , 199 ,
between Patricia G. Paraschuk, a single person (the "Mortgagor"),
and the Housing and Redevelopment Authority in and for the City
of Fridley, Minnesota (the "Mortgagee "):
WITNESSETH:
That Mortgagor, in consideration of the Mortgagee's
covenants and agreements made under that certain Contract for
Private Redevelopment by and between the Mortgagee and Patricia
G. Paraschuk dated as of , 199, (the "Agreement ") and
in order to secure the payment by the Mortgagor of all amounts
required to be paid under Section 3.3 of the Agreement and the
Note as provided in the Agreement, and further in consideration
of the sum of One Dollar ($1.00), to Mortgagor in hand paid by
Mortgagee, the receipt whereof is hereby acknowledged, does
hereby convey unto Mortgagee, forever, real property in Anoka
County Minnesota, described as follows:
Great Northern Industrial Center, Lot 1, Block 7, Anoka
County, Minnesota.
together with all hereditaments and appurtenances belonging
thereto (the "Property ").
TO HAVE AND TO HOLD THE SAME, to Mortgagee forever.
Mortgagor covenants with Mortgagee as follows: That Mortgagor is
lawfully seized of the Property and has good right to convey the
same; that the Property is free from all encumbrances, except as
follows:
None
that Mortgagee shall quietly enjoy and possess the same; and that
Mortgagor will warrant and defend the title to the same against
all lawful claims not hereinbefore specifically excepted.
PROVIDED, NEVERTHELESS, that if Mortgagor shall pay
Mortgagee all amounts payable by the Mortgagor under the
Agreement and the Note in an amount not exceeding Eighty Five
Thousand Dollars ($85,000.00), and shall repay to Mortgagee, at
the times and with interest as specified, all sums advanced in
protecting the lien of this Mortgage, in payment of taxes on the
Property and assessments payable therewith, insurance premiums
30
covering buildings thereon, principal or interest on any prior
liens, expenses and attorney's fees herein provided for and sum
advanced for any other purpose authorized herein, and shall keep
and perform all the covenants and agreements herein contained,
then this Mortgage shall be null and void, and shall be released
at Mortgagor's expense.
AND MORTGAGOR covenants with Mortgagee as follows:
1. To pay the amounts as specified in the Agreement and
the Note.
2. To pay all taxes and assessments now due or that may
hereafter become liens against the Property before penalty
attaches thereto;
3. To keep all buildings, improvements and fixtures now or
later located on or a part of the Property insured against loss
by fire, extended coverage perils, vandalism, malicious mischief
and, if applicable, steam boiler explosion, for at least the
amount of the Mortgage at all times while any amount remains
unpaid under this Mortgage. If any of the buildings,
improvements or fixtures are located in a federally designated
flood prone area, and if flood insurance is available for that
area, Mortgagor shall procure and maintain flood insurance in
amounts reasonably satisfactory to Mortgagee. Each insurance
policy shall contain a loss payable clause in favor of Mortgagee
affording all rights and privileges customarily provided under
the so- called standard mortgage clause. The insurance shall be
issued by an insurance company or companies licensed to do
business in the State of Minnesota and acceptable to the
Mortgagee. the insurance policies shall provide for not less
than ten (10) days written notice to Mortgagee before
cancellation, non - renewal, termination, or change in coverage,
and Mortgagor shall deliver to Mortgagee a duplicate original or
certificate of such insurance policies.
4. To pay, when due, both principal and interest of all
liens or encumbrances.
5. To commit or permit no waste on the Property and to
keep it in good repair.
6. To complete forthwith any improvements which may
hereafter be under course of construction on the Property; and
7. To pay any other expenses and attorney's fees incurred
by Mortgagee by reason of litigation with any third party for the
protection of the lien of this Mortgage.
31
8. To immediately pay the Note balance if the Property is
sold or transferred except that the Property may be transferred
to any corporation or partnership controlling, controlled by or
under common control of the Mortgagor; or the property may be
transferred to the heirs of Patricia G. Paraschuk or her trustees
in the event of her death.
In case of failure to pay said taxes and assessments, prior
liens or encumbrances, expenses and attorney's fees as above
specified, or to insure said buildings, improvements, and
fixtures and deliver the policies as aforesaid, Mortgagee may pay
such taxes, assessments, prior liens, expenses and attorney's
fees and interest thereon, or obtain such insurance, and the sums
so paid shall bear interest from the date of such payment at the
same rate of 5a per annum, and shall be impressed as an
additional lien upon the Property and be immediately due and
payable from Mortgagor to Mortgagee and this Mortgage shall from
date thereof secure the repayment of such advances with interest.
In case of default in any of the foregoing covenants,
Mortgagor confers upon the Mortgagee the option of declaring the
unpaid balance of the Note and the interest accrued thereon,
together will all sums advanced hereunder, immediately due and
payable without notice, and hereby authorizes and empowers
Mortgagee to foreclose this Mortgage by judicial proceedings or
to sell the Property at public auction and convey the same to the
purchaser in fee simple in accordance with the statute, and out
of the moneys arising from such sale to retain all sums secured
hereby, with interest and all legal costs and charges of such
foreclosure and the maximum attorney's fees permitted by law,
which costs, charges and fees Mortgagor agrees to pay.
The terms of this Mortgage shall run with the Property and
bind the parties hereto and their successors in interest.
IN TESTIMONY WHEREOF, Mortgagor has hereunto set its hand
the day and year first above written.
to
Patricia G. Paraschuk
32
STATE OF MINNESOTA
)ss
COUNTY OF
On this day of , 199_ before me, a
notary public within and for County, personally appeared
Patricia G. Paraschuk, a single person, and acknowledged the
foregoing instrument.
This document was drafted by:
Notary Public
Casserly Law Office, P.A.
Suite 1100 Southpoint Office Center
1650 West 82nd Street
Minneapolis, Minnesota 55431
33
SCHEDULE F
PERMITTED ENCUMBRANCES
The following shall be permitted encumbrances on the title
to the Redevelopment Property:
(a) Such encumbrances as are mutually agreed to in writing
by the Authority and the Redeveloper.
(b) Governmental regulations, if any affecting the use and
occupance of the Redevelopment Property and Minimum Improvements.
(c) Zoning laws of the City, County an State.
(d) All rights in public highways upon the land.
(e) Reservations to the State, in trust for the tax
districts concerned, of minerals and mineral rights in those
portions of the Redevelopment Property the title to which may
have at any time heretofore been forfeited to the State for
nonpayment of real estate taxes.
(f) The lien of unpaid special assessments, if any, not
presently payable but to be paid as a part of the annual taxes to
become due.
(g) The lien of unpaid real estate taxes, if any, not
presently payable but to be paid as a part of the annual taxes to
become due.
(h) A Mortgage as permitted under Section_ 8.2.
(i) Any Mortgage subordinate to the Authority Mortgage as
permitted under Section 8.2.
(j) The mortgage in favor of
securing a note in the principal amount of
34
&as
Produce RQhch
r
Executive Director
Bill Burns
Fridlev H.R.A.
6431 University_ :Ave. NE
Fridlev, Minn_ 55432
Dear Mr. Burns:
BoB's Produce Ranch
7620 UNIVERSITY AVE. N.E.
FRIDLEY, NIN 55432
PHONE: (612) 571 -6620
FAX: (612) 571 -5477
Julv 22. 1996
JUI. 2 4 19°�
On behalf of my company, BoB's Produce Ranch and Donald Fitch. owner
of the Fridlev Dairy Oueen located at Osborne Road and Universitv
Avenue, we would like to request that the HRA committee consider or
recommend installations of the Citv tvne liahtina that you had
installed on Mississippi and Universitv and on Osborne Road and
Hiahwav 65.
With the future installation of the Bike trail in front of our
property and the future developments of Osborne Business Center. we
feel this area warrants additional liahtina for beautifications and
to improve security.
If your committee would consider this proiect, we as landowners
would, at our expense, like to install a low profile white vinvl
rail fence along Osborne Road and alona the service drive to BoB's
Produce Ranch.
Our wishes are that the corrsnittee can react exneditiouslv so that
this proiect may be accomplished this year when the window of
improvement is readily available on our part. Please contact me. BoB
Schroer, for further information. Thank -vou for your consideration
on this important beautification proiect.
�re��
Sincerei
c
BoB Schroer
BoB's Produce Ranch