HRA 09/12/1996 - 6268HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, SEPTEMBER 12, 1996
7:30 P.M.
PUBLIC COPY
(Please return to Community Development Dept.)
CITY OF FRIDLEY
A G E N D A
HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, SEPTEMBER 12, 1996 7:30 P.M.
---------------------------------------------------------------
LOCATION: Council Chambers, Fridley Municipal Center
CALL TO ORDER
ROLL CALL
APPROVAL OF MINUTES: August 8, 1996
CONSENT AGENDA:
Revenueand Expenses . . . . . . . . . . . . . . . . 1 - 1C
Consider Proposals to Administer Home . . . . . . . 2 - 2L
Improvement Grant Program
Consider Application to MHFA for Community . . . . . 3 - 3J
Rehabilitation Fund
Acquire 5813 - 2 1/2 Street, 5925 Main . . . . . . . 4 - 4X
Street, and 5857 Main Street
Approve Resolution Authorizing Execution of. . . . . 5*- 5B
Loan Documents with the Family Housing Fund
ACTION ITEMS:
Conduct Public Hearing to Award Sale and . . . . . . 6 - 6U
Approve Resolution Authorizing Execution
of Development Agreement Regarding 6431
Jackson Street N.E.
Consider Resolution Authorizing the 7 - 7I
Issuance and Providing for the Repayment
of a General Obligation Tax Increment Note
Consider Appeal of Commissioner's . . . . . . . . . 8
Determination Regarding Cherrywood
Apartments
INFORMATION ITEMS:
Monthly Housing Report . . . . . . . . . . . . . . . 9 - 9A
Consider Request for Street Lights Along . . . . . .10 -10E
Osborne Road
Review Proposed Fair Housing Ordinance . . . . . . .11 - 11F
October Meeting with City Council . . . . . . . .12
OTHER BUSINESS:
ADJOURNMENT
HRA RESOLUTION NO. 18 - 1996
A RESOLUTION AUTHORIZING EXECUTION AND
DELIVERY OF LOAN DOCUMENTS BY AND BETWEEN THE
HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF FRIDLEY AND THE FAMILY
HOUSING FUND OF MINNEAPOLIS AND SAINT PAUL
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 execute and
deliver:
a. Construction Loan Agreement
b. Promissory Note
c. Combination Mortgage, Security Agreement, and
Fixture Financing Statement
d. Assignment of Rents and Leases
e. Funding Agreement
f. Any other document or agreement necessary to
evidence and implement the transaction with the
Lender
(the "Loan Documents ") with the Family Housing Fund
of Minneapolis and Saint Paul (the "Lender ").
Section 2. Findings.
2.01.
The Authority hereby finds that it has been 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 Loan Documents
promote the objectibes 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 Loan Documents.
Page 2 - HRA Resolution No. 18 - 1996
PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF FRIDLEY THIS 12TH DAY OF SEPTEMBER,
1996.
LAWRENCE R. COMMERS - CHAIRPERSON
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
HRA RESOLUTION NO. 19 - 1996
RESOLUTION AUTHORIZING EXECUTION OF A SALE AND
DEVELOPMENT AGREEMENT BY AND BETWEEN THE
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF FRIDLEY AND DAVID WIGER, D /B /A AS
WIGER CONSTRUCTION.
WHEREAS, the Housing and Redevelopment Authority in and for the
City of Fridley (the "Authority ") has developed a program to
acquire and demolish or substantially rehabilitate dilapidated,
substandard and unsafe homes to help eliminate neighborhood blight
and decline; and
WHEREAS, the Authority has acquired a single family home at 6431
Jackson St. NE, Fridley, Minnesota (the "Redevelopment Property ")
with the intent of rehabilitating the Property; and
WHEREAS, the Authority has received proposals from private
developers to purchase and rehabilitate the Redevelopment Property;
and
WHEREAS, the Authority has selected a proposal submitted by David
Wiger, D /B /A Wiger Construction (the "Developer "); and
WHEREAS, the Authority requires that the Developer enter into a
Sale and Development Agreement to secure satisfactory performance
and completion of the Redevelopment Property.
NOW, THEREFORE, BE IT RESOLVED THAT, the Authority hereby
authorizes the execution of a Sale and Development Agreement by and
between the Authority and David Wiger, D /B /A Wiger Construction and
that the Chairperson and Executive Director of the Authority are
authorized to sign any necessary documents.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY THIS 12TH DAY OF SEPTEMBER, 1996.
LAWRENCE R. COMMERS - CHAIRPERSON
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
HRA RESOLUTION NO. 20 - 1996
A RESOLUTION AUTHORIZING THE ISSUANCE AND
PROVIDING FOR THE REPAYMENT OF A GENERAL
OBLIGATION TAR INCREMENT NOTE, SERIES 1997,
IN THE PRINCIPAL AMOUNT OF $1,500,000
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 "Issuer "), as
follows:
Section 1. Statutory Authorization.
1.01.
The Issuer and the City of Fridley, Minnesota (the
"City ") have heretofore approved the establishment of
a Modified Redevelopment Plan relating to
Redevelopment Project No. 1 (the "Program ") and Tax
Increment Financing Districts Nos. 1, 2, 3, 6, 7, 9,
10, 11, 12, 13, and 14 (the "TIF Districts ") within
the Program, and approved tax increment financing
plans for the purpose of financing certain
improvements within the Program, all pursuant to
Minnesota Statutes, Sections 469.001 to 469.047 and
Sections 469.174 to 469.179.
1.02.
Pursuant to Minnesota Statutes, Section 469.178,
subdivision 3, the Issuer is authorized to issue and
sell its bonds for the purpose of financing a portion
of the public redevelopment costs of the Program.
Such bonds are payable from all or any portion of
revenues derived from the TIF Districts and any other
revenues or property of the Issuer.
Section 2.
Findings.
2.01.
The Issuer hereby finds and determines that it is in
the best interests of the Issuer that it issue and
sell its General Obligation Tax Increment Note,
Series 1997 (the "Note ") in the principal amount of
$1,500,000 for the purpose of financing certain costs
of the Program.
Section 3.
Issuance, Sale, and Terms of the Note.
3.01.
The Note shall be issued in the principal amount of
$1,500,000 and shall be sold to the City (the
"Owner ") at the price of par. The Note shall be
dated February 1, 1997, the date of delivery thereof,
shall mature on February 1, 2012, and shall bear
interest at the rate of 5.0% per annum to the earlier
of maturity or prepayment.
Page 2 - HRA Resolution No. 20 - 1996
Section 4. Form of Note.
4.01. The Note shall be in the form attached as Exhibit A
to this Resolution.
Section 5. Execution and Delivery.
5.01. The Note will be prepared under the direction of the
Executive Director and executed on behalf of the
Issuer by the signatures of its Chairman and its
Executive Director.
5.02. When the Note has been so prepared and executed the
Executive Director will deliver the same to the City
upon receipt from the City of $1,500,000.
Section 6. Securitv Provisions.
6.01. The Note is payable from tax increments ( "Tax
Increments ") received by the Issuer from the TIF
Districts. If any payment of principal or interest
on the Note will become due when there is not
sufficient receipt of Tax Increments in the year the
payment is owing to pay the same, the Issuer's
Finance Officer will pay such principal or interest
from the general fund or from any other revenues or
property of the Issuer, and the general fund will be
reimbursed for such advances out of the proceeds of
Tax Increments when received.
PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF FRIDLEY THIS 12TH DAY OF SEPTEMBER,
1996.
LAWRENCE R. COMMERS - CHAIRPERSON
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
Page 3 - HRA Resolution No. 20 - 1996
EXHIBIT A
199 $1,500,000
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
HOUSING AND REDEVELOPMENT AUTHORITY
In and For
THE CITY OF FRIDLEY
GENERAL OBLIGATION TAX INCREMENT NOTE
(SERIES 1997)
The Housing and Redevelopment Authority in and for the City of
Fridley, Minnesota (the "Authority "), hereby acknowledges itself to
be indebted and, for value received, promises to pay to the order
of the City of Fridley, Minnesota, a municipal corporation, or its
registered assigns (the "Owner ") solely from the source, to the
extent and in the manner hereinafter provided, the principal amount
of this Note, being One Million Five Hundred Thousand Dollars
($1,500,000.00) (the "Principal Amount "), together with interest
thereon from February 1, 1997 at a rate of five percent (5.0 %), on
the dates (the "Scheduled Payment Dates ") set forth on the Payment
Schedule attached as Exhibit A hereto and in the amounts stated
thereon (the "Scheduled Payments "). This note shall be payable in
semiannual installments commencing on August 1, 1997, and on the
1st day of February and August thereafter until and including
February 1, 2012.
Upon 30 days' prior written notice from the Authority to the
Owner, the Principal Amount is subject to prepayment at the option
of the Authority in whole or in part on any Scheduled Payment Date.
Each payment on this Note is payable in any coin or currency
of the United States of America which on the date of such payment
is legal tender for public and private debts and shall be made by
check or draft made payable to the Registered Owner and mailed to
the Registered Owner at its postal address within the United States
which shall be designated from time to time by the Registered
Owner.
The Note is a general obligation of the Authority, which has
been issued by the Authority pursuant to and in full conformity
with the Constitution and laws of the State of Minnesota, including
Minnesota Statutes, Section 469.178, Subdivision 3, to aid in
financing a "project ", as therein defined, of the Authority
consisting generally of defraying certain public redevelopment
costs incurred and to be incurred by the Authority within and for
the benefit of its Redevelopment Project No. 1 (the "Program ").
Page 4 - HRA Resolution No. 20 - 1996
The Note is not a general obligation of the City of Fridley,
Minnesota (the "City ") or the State of Minnesota (the "State "), and
neither the City, the State nor any political subdivision thereof
shall be liable on the Note, nor shall the Note be payable out of
any funds or properties other than funds and property of the
Authority and from tax increment resulting from increases in
taxable valuation of real property in the Authority's Tax Increment
Financing Districts as set forth in the Resolution, authorizing the
issuance of the Note, to which reference is made for a full
statement of rights and powers thereby confined.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions,
and things required by the Constitution and laws of the State of
Minnesota to be done, to have happened, and to be performed
precedent to and in the issuance of this Note have been done, have
happened, and have been performed in regular and due form, time,
and manner as required by law; and that this Note, together with
all other indebtedness of the Authority outstanding on the date
hereof and on the date of its actual issuance and delivery, does
not cause the indebtedness of the Authority to exceed any
constitutional or statutory limitation thereon.
IN WITNESS WHEREOF, the Authority has caused
executed by the manual signatures of its Chairman
Director and has caused this Note to be dated
Chairman
This instrument was drafted by:
Casserly Law Office, P.A.
Suite 1100 Southpoint Office Center
1650 West 82nd Street
Minneapolis, MN 55431
this Note to be
and Executive
, 199
Executive Director
Page 5 - HRA Resolution No. 20 - 1996
CERTIFICATE OF REGISTRATION
It is hereby certified that the foregoing Note, as originally
issued on , 199_, was on said date registered in
the name of the City of Fridley, a Minnesota municipal corporation,
and that, at the request of said Owner of this Note, the
undersigned has this day registered this Note as to principal and
interest on the Note in the name of such Owner, as indicated in the
registration blank below, on the books kept by the undersigned for
such purposes.
Name of
Registered Owner
Date of
Registration
City of Fridley, 199_
Minnesota
Signature of
Executive Director
Page 6 - HRA Resolution No. 20 - 1996
EXHIBIT A
PAYMENT SCHEDULE
SCHEDULED PAYMENT DATES SCHEDULED PAYMENTS
August 1,
1997
$71,666.46
February
1, 1998
71,666.46
August 1,
1998
71,666.46
February
1, 1999
71,666.46
August 1,
1999
71,666.46
February
1, 2000
71,666.46
August 1,
2000
71,666.46
February
1, 2001
71,666.46
August 1,
2001
71,666.46
February
1, 2002
71,666.46
August 1,
2002
71,666.46
February
1, 2003
71,666.46
August 1,
2003
71,666.46
February
1, 2004
71,666.46
August 1,
2004
71,666.46
February
1, 2005
71,666.46
August 1,
2005
71,666.46
February
1, 2006
71,666.46
August 1,
2006
71,666.46
February
1, 2007
71,666.46
August 1,
2007
71,666.46
February
1, 2008
71,666.46
August 1,
2008
71,666.46
February
1, 2009
71,666.46
August 1,
2009
71,666.46
February
1, 2010
71,666.46
August 1,
2010
71,666.46
February
1, 2011
71,666.46
August 1,
2011
71,666.46
February
1, 2012
71,666.46
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING
AUGUST 8, 1996
CALL TO ORDER:
Vice - Chairperson Schnabel called the August 8, 1996, Housing and
Redevelopment Authority meeting to order at 7:30 p.m.
ROLL CALL:
Members Present: Virginia Schnabel, Jim McFarland, John Meyer,
Duane Prairie
Members Absent: Larry Commers
Others Present: Barbara Dacy, Community Development Director
Jim Casserly, Financial Consultant
Grant Fernelius, Housing Coordinator
Craig Ellestad, Accountant
Robert Van Nelson, Remodeling Counselor
David Wiger, 901 Rice Creek Terrace
Jeffrey Surma, 1852 Fillmore Street N.E.
Kiley Jo Surma, 1934 Hayes Street N.E.,
Minneapolis, Minnesota
Skip Sorenson, Architect, 10249 Yellow Circle
Drive, Minnetonka, Minnesota
Edward Johnson, 9793 - 64th Avenue North,
Maple Grove, Minnesota
APPROVAL OF JULY 11, 1996, HOUSING AND REDEVELOPMENT AUTHORITY
MEETING•
MOTION by Mr. Prairie, seconded by Mr. McFarland, to approve the
July 11, 1996, Housing and Redevelopment Authority minutes as
written.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
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 of August 8, 1996.
Ms. Schnabel asked what was disbursed on check #26082.
Mr. Ellestad stated check #26082 includes a $140,000 grant and
$140,000 loan for Mr. John Allen for the industrial project on
HOUSING & REDEVELOPMENT AUTHORITY MEETING AUGUST 8 1996 PAGE 2
73rd Avenue.
2. RESOLUTION AUTHORIZING EXECUTION OF DEVELOPMENT CONTRACT
WITH WALLBOARD, INC.
3. HOUSE PLAN DESIGNS FOR 5981 - 3RD STREET
MOTION by Mr. McFarland, seconded by Mr. Prairie, to approve the
Consent Agenda as presented along with the additional
expenditures as outlined in Mr. Ellestad's memo of August 8,
1996.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
ACTION ITEMS•
4. PROPOSALS TO REHABILITATE 6431 JACKSON STREET N.E.
Mr. Fernelius stated the HRA discussed this item at the last
meeting. At that time, the direction was.to accept proposals for
the rehabilitation of this property with a number of assumptions
including that the purchase price would be fixed at $40,500. The
bidders were instructed to meet minimum specifications and staff
prepared bids accordingly. Bidders were also encouraged to
identify any additional improvements beyond the minimum
improvements in their proposals.
Mr. Fernelius stated staff contacted 27 individuals and builders.
Bidders were asked to prepare written proposals as well as a
description of their experience and references. As is required
with all scattered site acquisitions, the successful bidder would
be required to enter into a development contract with the HRA and
provide a letter of credit equal to the amount of the
improvements. The bidder would need to arrange their own
rehabilitation and permanent financing. Mr. Van Nelson reviewed
the proposals.
Mr. Van Nelson stated staff received three proposals. Bids were
received from Mr. Ed Johnson who proposes to make the
improvements and sell the property to his brother; Jeff Surma who
proposes to own and occupy the home; and David Wiger who proposes
to improve the property and place it on the market for sale.
Mr. Van Nelson stated all three of the bids were thorough and
complete. All address the minimum standards. All indicated an
ability to meet the financing requirements and had experience
working on similar projects. All provided references and all the
references had good things to say about the bidders. There was
some variation in the additional improvements. All three
exceeded the minimum requirements.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, AUGUST 8, 1996 PAGE 3
Mr. Van Nelson stated Mr. Johnson proposed the minimum standards
and additional items would be worth $41,000 in value. That in
addition to the purchase price totals of $81,500. Mr. Surma
proposed $34,000 to meet the minimum requirements, $6,000 for
additional improvements with a 10% contingency for a total of
$44,000. That and the purchase price totals $84,500. Mr. Wiger
proposed $24,500 to meet the minimum standards, $19,800 for
additional items with a contingency of 10% for a total rehab of
$48,840. That and the purchase price totals $89,340.
Mr. Van Nelson stated all three proposals showed considerable
merit. After evaluating the proposals, Mr. Wiger's proposal
highlights include a 12 foot x 12 foot addition incorporating the
previous addition to make it tie more into the existing
structure; closing one unnecessary staircase and building in
entertainment centers; new ceramic tile in the upper bathroom and
an additional shower; a more modern approach to the kitchen; a
new patio out the back; adding additional bedroom windows beyond
replacing the windows that are there; and a substantial reworking
of the front porch to make it structurally sound. Some
additional items in his bid included the quality of materials,
ceramic tile in the kitchen and bath, a new countertop in the
kitchen, replacing exterior doors, and providing a substantial
carpet allowance. Other strengths were the 20 years experience
as a contractor licensed in the state and the City of Fridley and
the financial capability to do the project. Mr. Van Nelson did a
site visit on a project by Mr. Wiger in Fridley which was
finished very well.
Mr. Fernelius stated staff's recommendation would be to accept
the proposal from Mr. Wiger. Between now and the September HRA
meeting, staff would work with the HRA attorney to prepare the
development contract and finalize the details of what the
improvements will be. This would then be available for HRA
consideration in September. If approved, Mr. Wiger would start
work on October 1 and have 180 days in which to complete the
project.
Mr. Meyer asked if the HRA had decided whether the property was
to be sold and remodeled or demolished.
Ms. Schnabel stated the HRA had decided to see what was proposed
to rehab the property. Based on the bids, the HRA would decide
whether to repair or demolish.
Mr. Meyer stated the question is whether to demolish or to
repair. What is the cost to demolish the structure?
Mr. Fernelius stated demolition costs $4,000 to $5,000.
Mr. Prairie stated he drove by the property. He asked if there
had been feedback from the neighbors.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, AUGUST 8, 1996 PAGE 4
Mr. Fernelius stated the mood at the last meeting seemed to be
that the neighbors would prefer to see the house torn down.
Ms. Schnabel stated she did not think the neighbors had
confidence that anyone could work with it and bring it up to the
standards of the neighborhood or do the work in a timely fashion.
Mr. Meyer asked if it was correct that, if they went with the
proposal, the HRA has nothing at risk.
Mr. Fernelius stated this was correct. We still have the option
to foreclose the mortgage and get the property back, or take the
letter of credit and do the work, and /or demolish.
Mr. Meyer stated the cost to the HRA is that they tie up certain
monies for the loan.
Ms. Dacy stated the HRA will issue a mortgage at 5% and the HRA
does not collect payment until all improvements are complete.
Mr. Fernelius stated the motivation is that the HRA has a loan on
the property. The HRA has invested money in the property and
there is no additional expenditure at this point. There is no
transfer of funds. The only amount being financed is the cost of
the land which is being carried by the HRA. The bidder must
secure their own financing for the improvements and then
permanent financing.
Ms. Schnabel stated the alternative is to demolish the structure
in which case the HRA would have $40,500 invested for the
purchase plus the additional expense of the demolition. The sale
of the lot would recoup part of that.
Mr. Fernelius stated this was correct. Because this is part of
the scattered site program, the HRA might be able to collect some
tax increment financing. This would recoup some of the costs.
Mr. Prairie stated the contractor would start work on October 1.
The date to complete construction is in 180 days.
Mr. Fernelius stated yes. Six months is adequate time to do the
work. They could start the exterior work this fall and do
interior work during the winter.
Mr. Meyer asked why Mr. Wiger included a sun porch, etc.
Mr. Wiger stated the porch that is there serves no purpose and
does not follow the roof line. He felt this addition would make
the house more saleable.
Mr. Meyer stated he was struck by the fact that the base bid is
$24,000 and the extras $20,000.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, AUGUST 8, 1996 PAGE 5
Mr. Wiger stated he and his partner pretty much do the work so
they bid as if the work was subcontracted.
Mr. Meyer asked if staff would accept this bid if we had the
$24,000 minimum bid and forgot the extras.
Mr. Prairie stated he did not understand this reasoning. They
need to consider the bottom line or the total bid.
Ms. Schnabel stated she also did not understand.
Mr. Fernelius stated staff is proposing to sell the property to
Mr. Wiger who is taking the risk. If he wants to invest $50,000
in that property, that is his choice. Clearly, the neighborhood
would benefit from that.
Ms. Dacy stated the bidder is meeting everything that is being
required.
Mr. Meyer asked why we did not tell the bidder to give us the
$24,000 job. We established minimum standards and this bid was
the lowest bidder on the minimum standards. Are the bids being
considered on an equal basis?
Ms. Dacy stated staff would not recommend going with just the
minimum standards. Staff's direction from the HRA was to
establish minimum standards and to encourage as much additional
improvement as possible to enhance the value of the home. We are
looking for as many things as possible to make the property
marketable and compatible with the neighborhood. We need to look
at the bottom line. We want a first class job on this remodeling
project and staff believes this proposal meets those standards.
Mr. Prairie stated, if they demolish the structure, this will
cost us more and we will get only a portion back. Under
remodeling, the HRA will receive the full amount back.
Mr. Schnabel asked if there were further comments from the
public.
Mr. Surma stated he planned to do the work himself. The figure
of $34,000 is for minimum improvements but there would be
additional improvements. He would replace windows and re -roof
the house. He works with friends. He has done other projects.
He has a lot of other ideas. He thought they should look at what
they were going to do with the property. The property would be
owner occupied and he would plan to be there for a long time.
Mr. Meyer asked if he was bonded and licensed in the City of
Fridley.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, AUGUST 8, 1996 PAGE 6
Mr. Surma stated no. He now lives in northeast Minneapolis. He
has rental property but he wants to move out of that area. He
can do most of the work. His friends who have licenses in
various areas would help.
Mr. Johnson stated he attended the last meeting. He felt the
house would have been demolished if he had not been there. The
loan interest is 5 %. Is this for contractors to get ahead or is
this to help citizens? He plans to fix the house and his brother
would live there. He did not think one can look at the numbers.
You have to look at experience. If you put in $20,000, you are
not getting that out of it if you are selling.
Mr. Prairie asked the time frame on this.
Ms. Dacy stated staff prefer the HRA take action this evening.
The goal is to remodel in the next six months or demolish to
include in the housing replacement program. The neighborhood
wants resolution on the lot. The HRA has the option to table but
that would mean approving everything at once in order to have
time to do the work. Staff would prefer a decision tonight.
Mr. Johnson asked why the time allowance was 180 days. The work
could be done in 90 days.
Mr. Fernelius stated that is the typical maximum requirement for
new construction.
Mr. Meyer stated the problem he sees is that these standard
specifications are so loose that no one knows what we would be
getting. They are very vague.
Ms. Dacy stated the agenda packet information 4K through 4T
spells out every standard for each room which is the outline or
the framework for the development agreement. The root of your
concern is that you want to make sure that what they are doing is
correct and should address the issues. We want to set up a
development contract and make sure it is met.
Mr. Prairie stated the sample provided is similar with the bid
summary sheet.
Ms. Schnabel thought it was quite complete in terms of minimum
standards so there should be no misunderstanding.
Ms. Dacy stated that does negate remodeling versus demolition.
If the HRA feels a new home is more appropriate, that then is an
issue that must be decided. If you choose to remodel, staff
wants to be ask specific as possible.
Mr. Meyer stated he felt the extra work was also very vague.
HOUSING & REDEVELOPMENT AUTHORITY MEETING AUGUST 8, 1996 PAGE 7
Ms. Schnabel stated the extra items is what each have spelled out
on their bids.
Mr. Prairie stated, if they demolish, there is then an open lot
that may sit there for a time.
Ms. Dacy stated, if the home were demolished, the site would be
included in the inventory and they would try to sell it next
spring.
Mr. Meyer stated, from the neighbors' descriptions, it sounds
hopeless inside to make anything of it. We may be putting money
into something that may be unfixable.
Mr. McFarland stated, with the property and $40,000 in value for
improvements, the HRA will have plenty to back up the investment.
MOTION by Mr. McFarland, seconded by Mr. Prairie, to accept the
proposal from Mr. Wiger
Ms. Schnabel asked the value of some of the other homes in the
neighborhood.
Mr. Fernelius stated the values range from the mid- $80,000's to
$100,000. With the improvements, this house would be in that
range.
UPON A VOICE VOTE, WITH MS. SCHNABEL, MR. MCFARLAND, AND MR.
PRAIRIE VOTING AYE AND MR. MEYER VOTING NAY, CHAIRPERSON
DECLARED THE MOTION CARRIED BY MAJORITY VOTE.
5. TIF REQUEST FOR NOAH'S ARK SENIOR HOUSING INC
Ms. Dacy stated the senior housing proposal is from Noah's Ark
Senior Housing, Inc. They are requesting pay -as- you -go tax
increment financing from the HRA and are requesting the City
Council to issue mortgage bonds. These are concurrent items that
will be scheduled as they proceed. Noah's Ark is proposing to
construct a 104 -unit, four -story independent living apartment
building at 83rd and University. The total project cost is $8.5
million. The bond issuance would require that 40% of the units
be rented to households with incomes less than 600 of the median
income or $26,220. 40% of the units would be taxed at 2.3% rate
and the rest at 3.4 %. The rental rates would be $575 per month
UP to $1,100 per month. Approximately half of the apartments
would be one - bedroom and the rest two - bedroom units.
Ms. Dacy stated the City Council discussed this issue at their
workshop meeting and agreed that a senior housing proposal was
preferable to a commercial development. This is a higher value
project and would generate more taxes. Staff completed an
analysis and this project would generate $150,000 in taxes per
HOUSING & REDEVELOPMENT AUTHORITY MEETING, AUGUST 8, 1996 PAGE 8
year as compared to commercial at $50,000. This also meets a
community need for senior housing.
Ms. Dacy stated, from a location standpoint, it is near the
Nature Center and pedestrian trail, close to shopping, etc. The
market is for independent seniors who may still drive.
Transportation services will be provided for those who do not
drive.
Ms. Dacy stated the City Council made no objection from a land
use or policy standpoint. There is enough time in the existing
TIF district 103 to provide up to $680,000 in tax increment. The
exact amount of the assistance needs to be further clarified but
it will be in the range of $600,000 to $680,000. The purpose of
the assistance is to assist with the land acquisition, soil
correction and mitigation. The burden is on the developer to
construct the project and the HRA delivers a note. The
assistance amount represents approximately 8% of the project
costs. Mr. Commers wanted staff to come up with the 1989
development request which was included in the agenda packet. Mr.
Stutz had no problem with the request and felt there would be no
impact on the townhomes. There"is enough room in the senior
market for both products. Staff went through the senior housing
guidelines and this project meets those guidelines.
Ms. Dacy stated staff recommend the HRA authorize staff to
continue negotiations with Ark Development to provide pay- as -you-
go tax increment financing and prepare a development contract for
HRA approval.
Mr. Prairie asked what constitutes a senior.
Ms. Dacy stated she believed this was persons aged 55 and over.
For the bond, the age may be established at 62 or 65.
Mr. Sorensen stated the average age of seniors living in these
buildings is approximately 78 years. The turnover rate is less
than 8% per year. This is an independent living facility.
Noah's Ark is a non - profit agency and will provide services such
as light housekeeping, transportation service, ancillary services
for one hot meal a day. Other than that, other features include
an emergency response system and security system in the building,
a camera system and underground parking which is monitored.
These are features the tenants like to see. Tenants have the
right to come and go anytime they want to. This project will
have ancillary spaces in the building including a community room,
solarium, dining room, library, beauty parlor, TV room,
management offices, etc., to help create a sense of community.
Ms. Schnabel asked where the emergency response came from.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, AUGUST 8, 1996 PAGE 9
Mr. Sorensen stated they have an on -site resident manager. There
will also be a service monitoring. Usually the service response
system is tied into the telephone system of the building. The
services provided in the basic rent include the rent and heat.
In Spring Lake Park, the rent also includes cable TV and the
tenants pay extra for underground parking.
Mr. Prairie stated the rent starts at $575 and goes up to $1,100.
Are there different categories?
Mr. Sorensen stated yes. About 40% of the units will rent for
$575 for a one - bedroom apartment. The remaining 60% will
adjusted accordingly. Their survey says they would be looking at
a density ratio of approximately 65% to 70% to be one - bedroom
units and the other 30% to 35% to be two bedrooms. What they are
finding to be popular in the marketplace is an entry level one -
bedroom unit with about 750 square feet. This is larger than
most standard units. Also popular is a one - bedroom unit with a
den; a two - bedroom unit; and a two - bedroom unit with a den. The
rents will go up accordingly based upon square footage.
Mr. Sorensen stated unit features will include basically
everything except the telephone. Included will be mini - blinds,
carpeting, all appliances, oak cabinets, etc. The only thing the
tenants will need to bring is their furniture and telephone.
Mr. Prairie asked how many parking stalls would be in the garage.
Mr. Sorensen stated they have found that 70% of the tenants
require underground parking. The day the building opens is the
largest demand for parking. As more services are provided,
people start getting rid of their vehicles. After five years,
this goes down to approximately 50 %.
Mr. Meyer asked the minimum age of tenants.
Mr. Sorensen stated he thought it would be 55.
Ms. Schnabel asked if they would allow pets.
Mr. Sorensen stated he thought there was a pet policy with a
security deposit required.
Mr. Prairie asked how many units were at Village Green.
Ms. Dacy stated Village Green has 100 units with five - stories.
Mr. Meyer asked what the floor construction materials would be.
Mr. Sorensen stated the floor between the garage and first floor
would be two -hour fire rate precast columns and beams. The upper
four floors will be fire rated to two hours with wood
HOUSING & REDEVELOPMENT AUTHORITY MEETING. AUGUST 8, 1996 PAGE 11
Mr. Casserly stated it does not matter what those costs are.
These are costs that will come out of the total and will help
support the total project.
MOTION by Mr. Meyer, seconded by Mr. Prairie, to authorize staff
to proceed with formal negotiations with Ark Development to
provide pay -as- you -go tax increment financing and to prepare a
development contract for HRA approval.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
INFORMATION ITEMS:
6. REVIEW PERFORMANCE OF MEPC UNDER CONTRACT FOR EXCLUSIVE
NEGOTIATIONS
Ms. Dacy stated MEPC held an event on July 18 which was attended
by several HRA members. This was a good event with a good
turnout. Ms. Dacy passed around a copy of information that was
distributed at the July 18 event.
Ms. Dacy stated staff feels MEPC is meeting what the contracts
has called for.
7. STATUS OF HOUSING PROGRAM
Mr. Fernelius stated staff is pleased with what has happened so
far. We have achieved the goal of lob loans in four months. The
flip side is that we could exceed the budget set aside for the
loan program. 53 applications are still pending. The potential
impact could be another $500,000. There is some money remaining
in the budget.
Mr. Fernelius stated these are monies that would be used for
loans that would be paid back on a monthly basis. The average
loan is about $12,000 with repayment over 12 years. This is
income that will be coming back in and can be relied upon.
Staff's request is for the HRA's concurrence to authorize up to
$500,000 for the housing revolving loan program. Staff will
continue to provide updates.
Mr. Prairie asked what the budget was going to be for next year.
Mr. Fernelius stated this has not been established at this point.
Mr. Prairie asked if staff wanted to attain this in 1.5 years.
Mr. Fernelius stated the direction from the City Council is to
keep plugging away and try to meet the demand. If the HRA wants
to set a limit, they can certainly do so. Staff want to promote
the programs and the improvements that are being made.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, AUGUST 8, 1996 PAGE 12
Ms. Dacy stated, when staff does a cash flow on an annual basis,
they figure very conservatively on the revenue side and very high
on the expense side. The HRA has an adequate cash position. The
City Council has directed staff to be aggressive with the rehab
program. Because the revolving loan fund has been successful so
far and although the budget may look like it is over, we will
receive these payments back. We do not want to be in a position
to halt the program. These funds will come back in. The program
has been so successful it has exceeded the expectations.
Mr. Meyer asked if staff had given the HRA a summary of the types
of housing rehab that has been done to date.
Mr. Fernelius stated staff has not done a formal analysis. A
range of improvements have been made including roof replacement,
furnace replacement, some room additions, multiple repairs
including roof, siding, windows, etc. Some of these improvements
have been deferred. He felt the program is making a positive
impact.
Mr. Prairie asked if how many driveways were being done.
Mr. Fernelius stated he did not have actual numbers. He felt
there were very few. Staff are encouraging that type of work.
Mr. Meyer stated he would like to see as a condition of the loan
that a person must undergo an inspection of plumbing, electrical,
heat, fire and then address any deficiencies.
Mr. Fernelius stated they could do that. When they started the
program, there were a number of restrictions which made the
programs less popular. Staff have modelled the program after
some that are out there. The borrower drives what is done. We
are determining who is eligible but they do not prioritize which
comes first.
Ms. Dacy stated the Remodeling Counselor helps the applicant look
at those things so they are being considered. The City Council
direction is to get people moving to take an interest in their
homes and to do the improvements that are needed.
Ms. Dacy stated staff would go to CEE to produce a report and
analyze what repairs are being made.
MOTION by Mr. McFarland, seconded by Mr. Meyer, to authorize up
to an additional $500,000 for the housing program budget for
1996.
Mr. Meyer stated this is with the understanding that staff will
draw up a list of what the funds are being used for.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, AUGUST 8, 1996 PAGE 13
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
8. REVIEW PROPOSED STRATEGY TO ACCOMPLISH MULTIPLE FAMILY
HOUSING GOALS
Ms. Dacy stated each year the City Council develops goals and
objectives for the year. One of the objectives for 1997 is to
closely evaluate the most severely deteriorated apartment
complexes in the community and figure out ways to assist the
owner in completing significant rehabilitation or completing
ourselves. After identifying the complexes, the choices can
include doing nothing, private rehab, non - profit ownership,
public - private partnership, public ownership, or demolish the
buildings. The City Council wants staff to explore the options
in the middle.
Mr. Fernelius stated the rental inspection program has been in
place for 1.5 years. Buildings are inspected every four years.
The focus is on basic health and safety related issues. It does
not get at issues such as marketability and attractiveness. The
City through the police department is involved in a rental
landlord coalition that deals with tenant screening, building
maintenance, etc. CEE did a short presentation on programs we
are offering. The emphasis has been on moderate rehabilitation
but they do not focus on those properties that require a
substantial investment.
Mr. Fernelius stated building issues are a concern. Many
buildings were constructed in the late 50's and early 60's and
were designed as inexpensive housing. Most contain one and two
bedroom units. The apartments are generally small with older
appliances and fixtures and lack some of the modern amenities
such as covered parking, balconies, play areas, green spaces,
three - bedroom units, etc. Problems are compounded when owners do
not invest in their properties. Another area is tenant services.
More tenants need services linked to the housing projects such as
child care, education, employment, etc.
Mr. Fernelius stated staff have identified four areas which have
buildings that are generally in poor condition, have some code
compliance problems, are unattractive in appearance, etc. Staff
did some site visits and came up with some suggestions for
improvement. The smallest project was four buildings with 28
units and the largest was nine buildings with 108 units.
Mr. Van Nelson stated the first site in on Island Park Drive and
is the largest site with nine buildings. It is adjacent to East
River Road which could provide the link to transportation but now
is off of the main street. It is close to an elementary school
and to the river. The buildings are poorly designed. There is
no sense of structure to the spaces and parking is up to the
HOUSING & REDEVELOPMENT AUTHORITY MEETING, AUGUST 8, 1996 PAGE 14
building. With no definition of front or back yard, people can
be anywhere around the building at any time without raising
suspicion. The buildings are not well articulated. The units
are primarily one - bedroom and some are two bedroom. There is
little storage which contributes to the clutter. There is no
evidence of people living there other than cars. The windows are
small.
Mr. Van Nelson stated some improvements include making a
prominent entrance, adding landscaping to create space to get
outside, lowering the grade so the lower level units could get
more light, adding a roof pitch to give the scale of a
residential building.
Mr. Fernelius stated these ideas are conceptual. Staff have not
talked with the owners and staff do not know what the expenses
would be. We don't know if that is the plan for every building.
There may be a variety of things one could do with each building
to give an individual character.
Mr. Van Nelson stated the second site is at 7th Street and Polk.
This is an isolated multi - family area close to residential. It
is bounded by major transportation routes. There are site
constraints so the developments are smaller but have a negative
impact. The buildings themselves are repetitive units, lack
articulation with the windows, have very little landscaping, and
lacks structured space such as a play area.
Mr. Van Nelson stated staff talked about incorporating some
service programs including a community room in the lower level
apartments, providing a way to access the building would enhance
the area as well as the possible addition of balconies,
landscaping and lighting.
Mr. Van Nelson stated the third site has 28 units in four
buildings. All are two -story stucco in a residential area and
bounded by University. The buildings are not much larger than a
house. The windows are small. There is no landscaping. The
spaces between the buildings are paved for parking.
Mr. Van Nelson stated possible changes could include bumping out
a small enclosure to bring the scale of the facade into line.
The bedrooms are on the street so there is little privacy. The
windows are in poor condition and need to be replaced. Their
plan considered larger openings. Adding a low pitch hip roof
would bring it into scale with the neighborhood. Landscaping and
decorative lighting would add to the appearance and safety.
Mr. Fernelius stated, in terms of an action plan, within the next
two or three months staff will talk with some of the owners to
see if they are interested in participating in a program like
this. Staff will not make any commitments. This is research to
HOUSING & REDEVELOPMENT AUTHORITY MEETING, AUGUST 8, 1996 PAGE 15
see if there is any interest. Ms. Dacy talked about a continuum
but we need to talk about the financial aspects, ownership
issues, how these buildings are managed, etc., as well as what
role the HRA would have in any project. In order to take these
elements one step further, staff would like to hire Gar Hargens
to provide some rehabilitation options including costs estimates,
site plans, etc. Staff estimate the cost to be $2,500. There
are some unused funds under the contract the HRA has with Close &
Associates, so the net expenditure would be approximately $1,300.
There is also the issue of tenant services which is where a non-
profit agency would step in. Many of these projects would
eventually involve a non - profit element to tie in tenant services
and management issues. Staff will also talk to other cities who
have had experience.
Mr. Fernelius stat
January 1, perhaps
finance agency for
have site control.
research the items
will be talking to
ad staff's goal is to do something by
have an application ready to go to the housing
an RFP. This would require a commitment to
In the coming months, staff would continue to
discussed and keep the HRA up to date. Staff
the City Council about this on April 19.
Mr. Meyer stated he was interested in the architectural change of
the site, but what is the bottom line. What is the ultimate
goal?
Mr. Dacy stated staff want to find the results of a high, medium,
and low rehab. The overall goal is to remodel inside and outside
and turn the buildings around. We have to find the right
mixture. Between the owner's cash flow and the MHFA program, we
can come together and see if anything can be done.
Mr. Meyer stated, if you take all the deficiencies, there is no
way with any reasonable budget that we would ever cure more than
a fraction of those deficiencies.
Ms. Dacy stated all of the sites are R -3. Another option is that
some of these buildings could be demolished and replaced with new
multiple family housing. The multi - family part is probably going
to be the most expensive issue the HRA will have to deal with.
Mr. Meyer asked why bother. These are units built by private
parties, occupied, rented, and making money for the owner. The
owners are finding people to rent the units. What business is it
of the HRA to disturb that process?
Ms. Dacy stated the City Council is telling staff that they feel
these are having a negative impact on the neighborhood. The City
Council wants to prevent blight and decline from impacting the
City. These are the areas that seem to be causing the most
problems.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, AUGUST 8, 1996 PAGE 16
Mr. Fernelius stated what he did not show on the map is four
other properties that are similar to the latter. They are the
same design but are better maintained. There is more multi-
family to the north which is properly maintained and properly
managed. Those shown have the perception of bringing the
neighborhood down. This represents an opportunity to intervene
and doing something.
Mr. McFarland stated the owners must not care or they would do
something. What can we do to motivate them?
Ms. Dacy stated this is the issue. How do we get an owner to go
beyond repaving a driveway, or re- roofing, etc.?
Mr. Meyer asked what business is was of public funds to help out
some landlords. There is not way to correct every ill in the
City. Where do we stop? There are many issues of blight that
have nothing to do with the building.
Ms. Dacy stated it may be that we buy the building and improve
it. Non - profit ownership is a way to turn the building around.
Mr. Prairie asked if staff was requesting funds to do an
analysis.
Mr. Dacy stated yes. Staff will continue to do all of these
things along with cost estimates.
Mr. Meyer stated Gar Hargens is very good and he has no problem
with getting estimates. He is against the program. He sees no
merit in this type program. He does not see that these units
have any more of a detrimental effect as before.
MOTION by Mr. McFarland, seconded by Mr. Prairie, to authorize
staff to hire Gar Hargens of Close & Associates to evaluate
rehabilitation options, exterior design issues and related site
improvements.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
ADJOURNMENT:
MOTION by Mr. Prairie, seconded by Mr. McFarland, to adjourn the
meeting.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED AND THE AUGUST 11, 1996, HOUSING AND
REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 10:10 P.M.
Respectfully submitted,
Lavonn Cooper
Recording Secretary
S I G N- I N S H E E T
HOUSING AND REDEVELOPMENT AUTHORITY MEETING, August 8, 1996
Name , Address /Business
c
h (c � c rnal
ic{ `(1
ei ��
TO: FRIDLEY H.R_A
FROM: CITY OF FRIDLEY
RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES
AUGUST 1996
AUGUSTA 9W !
Account #'s for
Account #'s for
CR
HRA's Use
City's Use
Code
ADMINISTRATIVE BILLING:
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)
TOTAL ADMINISTRATIVE BILLING:
460- 0000 -430- 4107
20.276.85
OPERATING EXPENSES:
USPS — POSTAGE
262- 0000 - 430 -4332
61.66
236 - 0000 -336 -3000
HA
USPS — POSTAGE
460- 0000 -430 -4332
14.81
236- 0000 - 336 -3000
HA
US WEST — PHONE SERVICE
460- 0000 -430 -4332
1428
236- 0000 - 336 -3000
HA
CITY OF FRIDLEY — POP
460- 0000 -430 -4221
4.80
236- 0000 - 336 -3000
HA
AMERICAN EXPRESS — LUNCH__
460- 0000 - 430 -4337
31.35
236 - 0000 -336 -3000
HA
236 - 0000 -336 -3000
HA
236- 0000 - 336 -3000
HA
TOTAL OPERATING EXPENSES:
BENEFITS EXPENSES:
CITY OF FRIDLEY — HEALTH INS 262 -0000- 219 -1001
CITY OF FRIDLEY — DENTAL INS 262 -0000- 219 -1100
CITY OF FRIDLEY — LIFE INS 262- 0000 - 219 -1200
TOTAL BENEFITS EXPENSES
TOTAL EXPENDITURES — AUGUST 1996
File: \123DATA \HRA \T1F\96BILL.wk1 Details
u
126.90
182.40 236 -0000- 219 -1001 11
20.53 236 -0000- 219 -1100 12
7.00 236 -0000- 219 -1200 13
209.93
$20,613:68'!
�- N
W GC
0 W
Q a0
cc
of
z
cc
0
O
a
w
ix
1 Z
a
F-
d
w
U
W
1'
F
U
W
0
O
a
z
W
f 1
0
0 1
LU
J i-
> r..
W J
C
W W
K H
Q
O D Z
za p
a�
C7 F- Ia..
N W L)
O= U Ix
w N
x
of W
O
Y x
-a w
w
� U pp
ZD
V g
U ~
C L)
L U
l0 Q
U
`O
P
Y
rn z
7 LU
q`OQgQ : mY
r (n (f)(: ate~
"O• --ww w ..
`O O \J JJ
O , W
V1 C) J J J U
O O W W W W
M K
M
. 0
O
W
O W 1-
(PT a q
O N
Cl) m r
\ O � m m, N Z,
M M Z O ,
\ M W Z •-. W w � l-
O (.7 E� qa i
n U w w O K
O •• 2UNK Cl- , OU
a¢ N,
q(X 7 Nwp
a Q O
wo Of o�o:
w 0 trfI ix
d 2 (.7 27 C7 F- ,
O O
(D
M
M
O
U
O
O
O
O
O
O
O
O
O
O
O N
O L!
O O
O O
O IA
0
N
co
C,
,L
a
fA
O
s1
d.
U
J
LL
p[
OO
p
O
00
N
N
O
O
O
O
O M
N
Co.
p
M
00
C
O
rA
3
Z
`O
CIO
C
O
¢
NE
N
y
3
L
Z
N
fl:
0
o
O
O
r'
0
o
N
M
N
Cho
N
L
N
N to
W ('
N J-1 N N N N 1 L N L N
� to N N N N N N
a — N
`O O W w `O P `O O`0. `O w `O N P `O E U `O `O `O `O `O `pOp p P O P N P P P . N
P O• P O• M
P P P M M M M M of In
\ \M \ \ \ \ y %'• N N N N N N
W CO `1O o O o co aC+ CO C O O O O co co co co O
O i+ O L O O O O O O
`O `D C `O `O `O .O
0 Co 0 0 0 0 o 0 o co) •� `O 'o `O `O `O `O w
O O x O O O O- O- O 3 O O O O O O >L'
0 0 0 0 0 0 0 o O o 0 o O o
1A
0 O
O co
m co
O co
z z
L)
q
+�
C
Yl
a
O
41
(Ei
W
a'
dl
S
L>
O
Z
d
`
N
tL
y
U
N
O1
W
O
Ol
c
•C)
•>
EL7
C
W
J
LL
ix
,L
a
fA
O
s1
d.
U
J
LL
p[
C
of
O
y�
U
7
LL
i+
d
A
�o
N
•O
O
N
4.
dl
(a
o
N
.O
O
d
W
vl
C
W
00
++
N
L
Z
C
d/
�
Q
7
L
C
7
III
O
N
L
y
c
W
F
N.
L
3
ll I
co
L
y
rn
/0
F
d
L
M
00
C
O
rA
3
Z
`O
CIO
C
O
¢
NE
N
y
3
L
Z
J
a
y
L
-�
W
N
2
0
0
0
o
0
v
0
o
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0°
o°
o
O
O
v;
fn
C3
C!
Ln
`:
M
L
O
O
O
N
O
O
O
O
O
`O
O
.o
M
N
.O
.O
N
C)
'0 M
C)
O
�
. O S-•
CD
N
`O
M
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
00
O
O
00
O
O
O
M
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
1-
O
.O
N
N
.O
N
N
.O
N
N
.O
N
N
.O
N
N
O
N
O
ti
p
N
c"
ti
ti
A
r
ti
N
N
N to
W ('
N J-1 N N N N 1 L N L N
� to N N N N N N
a — N
`O O W w `O P `O O`0. `O w `O N P `O E U `O `O `O `O `O `pOp p P O P N P P P . N
P O• P O• M
P P P M M M M M of In
\ \M \ \ \ \ y %'• N N N N N N
W CO `1O o O o co aC+ CO C O O O O co co co co O
O i+ O L O O O O O O
`O `D C `O `O `O .O
0 Co 0 0 0 0 o 0 o co) •� `O 'o `O `O `O `O w
O O x O O O O- O- O 3 O O O O O O >L'
0 0 0 0 0 0 0 o O o 0 o O o
1A
0 O
O co
m co
O co
z z
L)
q
O V W O) O O O r v N O O f In N CO �. c0 tp t'f In M O
co 0 0 0. N V 10 (Z m N .0 N O'
d Q CA O hU) O) ? 00 v10 Ov O m M O c1
CL N N O N v N N v m - Na t SS- I c O
Z v v VJ m ch N
co
£ V
0 C.
r m
N
o v ID m rn o� oo 0 0 a ao p o_ rp In w 2 W) 8 10 r_ r o 1 ,� II I
r ID In M co r r .- Cl) O 49 69 N W O O O O N i0 O (7 'D
O) o O ID N a ID ID N O O O O (D W a O W 10 r.0 CO
H W C7 W O W) V r r Ch (O W ab N O N W N O O_ a 190
a r O (9 (9 N N C9 O r e9 M C9 f9 69 (A N M (9 t9 C9 M
t9 (9 (A M !9 (A (9 (9 (9 (9 f9 I r r 4v
49 N x
�p M W) ^ 01 0 10 O O O O O O N O O O w 0 0 0 0 0 0 0 0 0 0 0 I W cli In tD M 't 0 ID N 1[ N r I OD
NW Cl) co r N N a a ID Ncl I IA
I 44
I
�I O m M co 1
W i0 I W I O
¢ c.) r r I op
1
co
Cl)
r W 'a,
I N
I
I
� I
h
LLJ
W I N
Cl) W
Z
LU I
a ' .2
x
W Q O o o Go w
i g
s�
� n
F I v
z
c ¢ 8 n N co 1 M « Ci 0 Q ^ CO OD 1 a C
Q V I 0
D Sa
Q ! C
Go cq
p
co
I
¢ CV m n I M O V
CO r N M I r C
W I m W
3 '
m) m f N N O r 0
m .M- a 1 W w 49
UI N
m N I h C 11
I
O i m
c T
.D o
Z 10 n co N 1 Z
V O N N I N C ui
I o a
r
1 a iD
1 0 O
I m
IM >
* m 0
W O) N Ip (7 � O O IO t0 O O O 7 N pp O N IO IO C% CO IO OO c7 r i0 r N 1 m n V
C7 1n r f9 M O /D r Q O O /7 O N c°f 00 O W f0 p m
O W c CTi W^ m fA Cl O Cl) m O" r O ID o7 'I W In r O/ (D r o w I 0 x J
N m r N r m N W h r OD 10 r N I r • T
F r r CA N N O W r r 10 I O U m
r 1 Ac N
1 th
(9 y
T j
u �
r In O M op 1 Q Ol -E �tl
O O) N W N O) 7 I r
f- rl cl) V a0 I ro
N
I w U O
C � 3
m 10
� co 0 0 O O O co
0
ui 0 00 0 0 In p 8 0 p 0 p p 0 p p p p0 1 O 0, O O O D 0 D 0 N y 0 O N 'It 0 8 Q cb r O N -. N e. m r O N r A In d 9 C f r N CO CA 49 N N (9 49 - W L iA V! � 49 Z I 69 CI (�
Z 11C _ a N Ix L y c
% Q O d C m o c
Q 0 W N u U O C x
(D Q T a T Z T Z T ¢ c i ~ y C 0 n ON y 0 N« :°. a 7 7 Chi j -� 0) Cc
W F � Z � 0 ffi c c ffi c Q p> a ¢ p n �+ c nQ ¢ CO CO am o < w Q
p m o d W o d < o o d w a w V I -c m tl4 1 ¢i U Q as ro a a
a D- E a E U a E a �1 a U i9 �_ c 2_ m m m o m o
0 3 wrr D.aam�
Qcn¢ Uc9¢ ¢cn¢v� �cn¢ d W
uj
<c �� cnNU)2a0 ¢¢¢¢F ZD f ,
LL
1c
F-
00 00f- -N O 111 Ln O.-OO Of- M vi C) O 000 t •O 00 t- O.t
O '
z ,
O OOO CD CD
OO OON a-�O ONO PtnOON �t N OO POST V1 .ON rS OOPO 1110
M
O
'
C6 P N d
W
Q'
an O Ln to 00 PO 00 O.0 P to Oto CD CD 00 N Mtito O ifl 0.000 N J
� M.-f� M t� (\I 'T CD Ln COM W NO. -vc-Op M•-�t W.0O NI-
P
N
O
aN-P
N u1 P 0 -t O p 0 N O P O M N M
P
M P N M O M -- - --
CO
O N
00
MI
W
O
O
U
Y
Z
Q
m ,
W �t
H F--
W t-~
m a t W Q Q Q
N N
a VI W W n N
LLZH K Z Z Z W W W Z W 1- LL'p ZZZ
J
¢
Q"-•LL . LL¢JO Q O w¢ W 0_ W ON �w
~O
W xQOOO
Ja ¢ W H o Ja J 1-- J W H w LL Y W } W JF Y-1-
0
• x i LL Z O 0_ LL [/i Y O w U LL CC D_
Y x W •-•
(.7 K �-- } p } W atJ J x U Q W 1- G7 M N In (n
N W p a Z Z Z J W J n �--
w
O W U .-•• � C7 p 2� y 2 •.-• •--, .--•
Otnn X: C) fn o!� -WO> z O»D
Z,
x QO W.- ..ULL'O_'- ...QQwMX -•d d d
X1/1 O x W
z
Q
(n w FUx
Q C0 4 Z x C.7 > -HN m WMJx x V1O O�--U UU
U U
O
Z U} ¢at1LLa LL, LL OUO H Q
,
UQ oa 1/1W LL W I U W W Z>
O.
m 1-0 d
"" N n(.7J O0!O_ C7 .OJ J J. --.JJ r+J R'(/J .•-, ce{ JZCr•••,nun mo
� ''•
r
Q
Q Z J d O_ Z (,7 J (7 (J N J J Cr J W H l:l O H J •-. d d' Q Z Q Q Q
L)Q Or•-O J •r VJZOZZ.-
p
L)
U
+00t -¢l- W> to OO UO• --•OO H
U 2' Q N CC W E Q In Z •••. W -. O�� U� F. �y Y •-+
-
N 1
W
W O Cr a g N d N d d d
;
W O_ > Y J Z O Q N �- J (n d y y J m O
C3 1
..0 J Q..., U6Q JzUCCQ wQOQY•• -•0:3c
W ¢ Vf Sd JLLLL SO PdLL111 ad 0_
W.. In 0 xn(nQD JLL(n NS(n (n (n
Or 1p0
..
W O c
C3 CD
z o
Q \
P
n
O_ • Y C ,
P O rNM "t 11110 \ W P O.--N M"t LAO n
0 1 U w 1
C) MJN•O ti 000, O
COP PPP PPP P PP 00000000������- -�
w H 1 W m 1
0.
�'-r NNN NN
O O O O O 0 0 0 0 0 0
1 x x ,
d U
10 10 10 10 10 10 10 10 '0 10 .0 10 10 10 10 10 10 10 10 10 .0 10 10 10 10 10 10 10 10 10 10 .0 10 10
N N
P
Z;
N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N
P ,
CA
\ 1
In b
Y O
U \ ,
W P
S
U
F
o_ o
a LL
U z z
w w
x x
Lu
En
O O a 2 U J~ (n W
> >
(n OC Z Z
~.
u V) aZ¢ ~00 W} W (nF > Ozcn
w O W w W U
J aQ' CC 1-LLF -Z HOOO Z
UK oljZ �-O
--• xcn w¢x }n
} wLL
Km J2x (.�(1Z (7,- -. ti OZxO Q' U(n • --, LLxG7 O_O Y
¢xw -- •-. x00:0 W f- -cnOm2 Ow--
¢� LL'2' m (7 LL
w a-(n
W w NLL'F - }(n Nw0 -f
W C7� N• -,�OOz z , }z�. -.a zzotJ CnzO }..._.�OOw
fO
2¢' O W ~ OK� W YH W QH W ¢O ¢HU F- -•O m:: '00
Z ,
x
ZZ Jwp 0_ U} .-.w x(n O •--• O_J LU
Z wa=K LL' f =<
ca W w ckK W (nS d' H¢
J0_x�> W L- OmOOot! ¢O YO n.J3 >ww
Q,
{,0 q¢} ....zw� ¢w
N _ •HO¢(.7LL mw •-.zzn xn
030_
O + <zUj O--• z w -
� ¢¢ O! N -�'Q ¢•NO Z .O
N J ,
w
O
p W ¢ cn J - Z
W f> O! •-. H W W Q W H x W 2¢ Q x x Z VJ J x> O< J W} O
> '
Z ,
• O w J •-. 1--- 3 Yle • Z • 0_ Z (n U W O p O W m
>d U(n C.. Z±W dxZ O OZJCJZ (n W K
P w
N
w
>
ZN 0_U• --•U z-� K1--
n0_ ¢ . z¢ }¢wwozwo -- f- ¢wOw0� z¢zO w¢O¢
w
¢¢ mU -. .-,x f 2'NU z¢U x.-•x z (nmmmp W LL.-. .-.xx 2'Nm U3
N �
�
p
Z
¢
Ol
\ c7
J Z
O O -•
\ 111
P M S
x o
CD x
.O .O '0 "0 •O •0 '0 '0 '0 '0 10 -'0 0 '0 10 '0 \0 10 •0 '0 '0 '0 '0 •0
'0 10 .0 '0 10
P P Ol Ol OP P P P OP Ol Ol P P Ol P P P P P P Ol Ol Ol PPP OPP P P P P P P
Q
o_c� n U
Cp 10 `0 10 10 10 •0 10 b CD 10 `O `0 (0 C0 `0 C0 `O •0 •0 `O •0 `0 •0 C0 •0 10 `0 b `O 10 `0
WO-
CO
o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
\ CD
Q-
'
\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \
P OP P P OP P P P P P OP OP P
0_ 0_ LL �
Q-
,
Ol P P Ol Ol P OP P P P P P P Ol P OP P P P P Ol
1c
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: September 6, 1996
TO: William W. Burns, Executive Director of HRA 4rIO&
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Consider Proposals to Administer Home Improvement
Grant Program
Background
Since 1993, the HRA and City have sub - contracted with Anoka County Community
Action Program (ACCAP)'to administer the Home Improvement Grant Program. This
program provides assistance up to $15,000 to low- income homeowners to fix -up their
properties.
The Home Improvement Grant Program is funded every year through the federal
Community Development Block Grant (CDBG) and-HOME programs. Separate
service agreements are required because the CDBG funds are received by the City
and the HOME funds are channeled through the HRA. Each year, the City Council
approves the service agreement for the CDBG funds and the HRA approves the
service agreement for the HOME funds. This year the HRA received $60,000 in
HOME funds from Anoka County.
Request for Proposal
In an effort to potentially reduce costs and consolidate administrative activities, staff
was directed to solicit a proposal from the Center for Energy and Environment (CEE)
which currently administers the HRA's single and multiple family loan programs.
ACCAP was also given an opportunity to submit a proposal. A copy of the RFP is
attached. The RFP requested each organization to state their experience and
capacity to handle the program and specify administrative costs.
Home Improvement Grant Program Memo
September 6, 1996
Page 2
Current Administrative Procedures
Currently, ACCAP administers the program under a shared arrangement with the
HRA. The HRA Housing Coordinator markets the program, takes applications,
performs some processing duties and determines eligibility. Eligible households
are then referred to ACCAP for further processing, including property inspections,
work write -ups, bid specifications, etc. ACCAP monitors the construction and does
final inspections and payments to the contractor.
ACCAP charges a flat rate of 11 % of the program budget for its share of the
administration. This amount is paid regardless of the number of grants that are
provided. Over the course of the last three years ACCAP has been paid $62,148 to
administer a total of 44 grants. This represents approximately $1,641 per grant.
Proposals Received
Both ACCAP and CEE submitted proposals to administer the program. Both
- organizations have adequate staff and experience to administer the program. In
addition, staff has had a good working relationship with both agencies.
ACCAP is requesting a 3% increase in its fees to cover the added administrative
costs. ACCAP's total cost to administer the program would equal. 14% of the budget
or $10,500. This amount is consistent with what Anoka County pays ACCAP to
administer the general county -wide housing rehabilitation program. It is difficult-to.
project a per -grant administrative cost because we don't know how many grants will
actually be made. However, assuming an average grant of $12,320 (three year
average), the 1996 program will support approximately 5 grants. Under ACCAP's flat
fee arrangement this represents a per -grant cost of $2,100.
CEE is requesting a fee of $850.00 per grant. CEE would receive this fee regardless
of the amount of time spent on each application. CEE would not be paid if it didn't
make any grants (the same applies to ACCAP). Based on ACCAP's historical costs,
CEE's fee is approximately 50% lower. When factoring in ACCAP's proposed cost
structure, CEE's fee is about 60% less.
CEE has several staff people who have experience working with the CDBG and
HOME regulations which are relevant to housing rehabilitation. In addition, CEE has
in -house staff to do inspections and work write -ups. Presently, ACCAP sub - contracts
with two inspectors, which at times has caused some delays in the program.
Home Improvement Grant Program Memo
September 6, 1996
Page 3
In addition to lower costs, CEE would assume all program administration and offer
better customer service through "one stop shopping ". Assistance packages could be
tailored to each customer's needs based on their financial situation. Equally as
important, customers would not have to be shuffled between different agencies, staff
and application procedures.
Recommendation
Staff recommends that the HRA accept the proposal by the Center for Energy and
Environment (CEE) to administer the Home Improvement Grant Program and
authorize the Chairperson and Executive Director to enter into a Service Agreement
for 1996 HOME funds to run through December 31, 1997. The City Council will
consider a separate action regarding the 1996 CDBG portion at a future meeting in
September.
GF/
M -96 -415
Request for Proposal
Introduction
The Fridley HRA is seeking a proposal /s to administer its Home Improvement Grant
Program. The program is funded through the Community Development Block Grant
and HOME Investments Partnerships program via the Anoka County HRA. The
Fridley HRA receives the funds from the County and then provides financial
assistance to low - income Fridley homeowners.
Background
For several years Anoka County has operated a County -wide deferred payment grant
program to assist low- income homeowners in making basic repairs and improve-
ments to their properties. With the exception of one community, all of the cities have
relied on Anoka County to administer the program on their behalf. Due to staff
constraints, Anoka County has sub - contracted the program administration to Anoka
County Community Action Program, a local non - profit based in Blaine.
In 1993, the City of Fridley and HRA became more aggressive on :horsing issues and
utilized their respective CDBG and HOME allocations to operate an independent
program. The program was modeled after the County -wide program and utilized the
same eligibility criteria. Each year, approximately $225,000 is budgeted for the
program.
Program Specifics
To qualify for this program, an applicant must meet the following criteria:
1. Have adjusted household income which is at or below 50% of median income
which is based on household size. A schedule of the income limitations is
attached. The County revises these figures once a year.
2. Have less than $25,000 in real assets, excluding the value of the home to be
improved, one vehicle, households furniture and personal belongings. Assets
such as bank accounts, stocks, bonds, mutual funds, the cash value of life
insurance, and other real property must be disclosed and verified.
3- The home must be owner - occupied, but can include owner - occupied duplexes.
4. The homeowner must be current on their property taxes and mortgage
payments. No additional credit requirements apply.
2C
Home Improvement Grant Program - RFP
Page 2
Program Specifics (cont.)
The maximum assistance is $15,000. A portion of the funds are forgiven each year,
however at least half must be paid back when the home is sold. Below is a
repayment schedule. No interest is charged on the outstanding balance
owed.
Within: Payback %
1 st Year
100%
2nd Year
90%
3rd Year
80%
4th Year
70%
5th Year.
60%
After 5th Year 50%
Administrative Procedures --
1. Application in -take and verification of eligibility.
- Explain program and selection criteria
- Review application
- Verify income and assets
- Verify mortgage history and property tax payment status
- Ensure compliance forms are executed
2. Notify applicant of eligibility status.
3. Review property records for correct legal description and ownership
information. Verify flood zone and zoning information.
4. Schedule and conduct property inspection.
5. Prepare detailed inspection report on condition of property using the federal
Housing Quality Standards. All properties must be brought up to HQS
standards upon completion of the project.
6. Prepare comprehensive work write -up and technical specifications for
homeowner to use in securing estimates.
ac
Home Improvement Grant Program - RFP
Page 3
Administrative Procedures (cont.)
7_ Review scope of work with homeowner and explain procedures for obtaining
contractor estimates, timeline to get quotes.
8. Prepare all paperwork for contractors to use when preparing estimates.
9. Follow -up with homeowner to check on status of bidding.
10. Assist homeowner in reviewing the estimates. A minimum of 3 written
proposals are required.
11. Schedule and conduct closing with homeowner to sign repayment agreement
and any additional paperwork. Record agreement with Anoka County.
12. Schedule and conduct a pre - construction conference with the homeowner and
the contractor (including major subs) before contract is signed and work
begins. Review what will be done, timing, hours when work -oan be done, job
site cleanliness, any potential disruptions. Explain procedures for payment,
when, how long to process, etc. Review the responsibilities of all parties.
13. Monitor work progress and when necessary assist in resolving disputes
between homeowner and contractor.
14. Conduct interim and final inspections and coordinate paperwork.
15. Work with HRA staff on processing payment to contractor on 30 day schedule.
16. Maintain audit -ready files and furnish copies of program documents to HRA
upon demand.
17. Prepare written procedures guide to incorporate the information outlined
above. This guide will be used by program staff. HRA staff shall review guide
before implementation.
Other Information
The projected timeframe for program implementation is shown below.
Funding Availability: July 1, 1996
Program Advertising: On -going
Pat
Home Improvement Grant Program - RFP
Page 4
Other Information (cont_)
Program Start: August 1, 1996
Applications will then be taken on a first -come, first -serve basis. Ideally, the
processing schedule should work as follows:
Application in -take and review Week 1
Review property records and Week 2
check flood zone and zoning
information.
Conduct property inspection. Week 3
Prepare detailed inspection Week 4
report and work write -up.
Homeowner to get bids Week 5 -3
Pre - construction meeting. Week 9
Monitor work progress and Weeks 10 -16
conduct interim and final
inspections.
Bu- dget
1996 CDBG Program $124,000
1996 HOME Program $75,000
$199,000
Proposal Requirements
1. State the background of your organization and any experience in working with
similar programs.
2_ State the qualifications of the staff who will be responsible for administering the
program.
3. Provide a breakdown of the administrative costs.
2F
Home Improvement Grant Program - RFP
Page 5
Proposal Requirements (cont_)
4. Provide any additional information which you believe is pertinent.
2G
July 31, 1996
Grant Fernelius
Housing Coordinator
City of Fridley BRA
6431 University Avenue NE
Fridley, MN 55432
Dear Grant: .
Tfiattk you for giving ^ the Center for Energy and En
proposal "for the CDBG/HOME programs offered b
Redevelopment Authority ` "
- P ; . _ tY ��)• As ou know, C
Y,
F to dehvetjthe_Fridley Home Improvement Program;
} a x x
r• z �r � :mss •-
CENTER FOR ENERG`
A P I D ENVIRONMENT
with the HR—Ael, ;
���
ffi6ntp
has proven to be a success CEE n very mterest 'm building upon an ahead lnd worknug�Y�
f -
relationship wrath the Adding`the CDBG program would be a step inthat d�ireech *oiL�
+>
jJPon wring -the Request for o sal I g`
ROM, x gip°P), have prepared the following quote for yout�
review
Whenever appropriate, the Center for Energy and Environmentprefers to bi d"' d�pro�ects on`a
performance basis - tinder. the: performance -based scenario, the'.HRAwilLoiityTMpay for results
produced "under the CDBG program.
{'
Based on the assumption that the contract agreement between CEE and BRA will be strictly
,.,
performance based, CEE proposes to charge the HRA a fee of $850.00 per CDBG Grant
completed. For this fee; CEEagrees to perform ail duties outlined under the Administrative
Procedures section of the RFP.
Note: CEE does not refer contractors to perform work'for applicants getting work done through
any home improvement program CEE administers. CEE staff will, however, provide all
technical data to the applicant and will assist in the collection of comparable bids. CEE will
work with HRA staff to develop a strategy in which to assist applicants in collecting their own
bids.
As you wilt see in the enclosed information regarding CEE's capabilities and experience, CEE is
very experienced in delivering programs such as the CDBG program. In addition, two CEE staff
members have many years of experience delivering CDBG programs for other municipalities.
TIIE FUTI_[F, �; l]UAi7E Ei ll ll_lJ'NC; li � tic)�t'r+ �.�� � SIiITE
2F! 4 0 i 1 { ' i� 1 1f
y f:15
Again, thank you for the opportunity to submit a proposal for the CDBG program. CEE feels the
CDBG program would be a natural step in developing a one -stop shopping experience for all
Fridley residents interested in home improvement financing.
If you have any questions regarding the enclosed material, or would like to discuss CEE's
proposal in person, please contact me at 348 -4585.
Sincerely,
David King
Business Manager
21
hCCAP ANOKA COUNTY COMMUNITY ACTION PROGRAM, INC.
1201 89th Avenue NE • Suite 345 • Blaine, MN 55434 • Phone 783 -4747 • FAX 783 -4700 • TTY 783 -4724
e",
A Unit eel VV,y
Ayeni.v
August 30, 1996
Mr. Grant Fernelius
Housing Coordinator
City of Fridley
6431 University Avenue N.E.
Fridley, Minnesota 55432
Dear Mr. Fernelius:
Enclosed please find a copy of the proposal to Deliver Home Improvement Grant
Program.
If you should have any questions, please do not hesitate to contact me.
Sincerely,
iParic McFarlan
Executive Director
PM /ch
Enclosure
AN EQUAL QPF 2 J Y [ %!PLOYER
Proposal to Deliver None Improvement Grant Program
Introduction
Anoka County Community Action Program, Inc. (ACCAP) is submitting a proposal to administer
the Fridley Home Improvement Grant Program.
Back ound
Since 1973 ACCAP has operated a County -wide deferred payment grant program (with the
exception of Columbia Heights) to assist low- income homeowners in making repairs and
improvements to their properties.
Programs include Community Development Block Grant, Home Program and MIIFA Deferred,
Accessibility and Revolving Loans.
Staff .
Donna Mattson -'Housing Services Director - 18 years Director of Housing Rehabilitation and
Weatherization Programs.
Lori Manzoline - Housing Technician H - 11 years Manages the Housing Rehabilitation Grants
and Loans. _
Cathy Bruno - Housing Worker - 2 years Maintains clerical work flow of the housing office.
Carol Stinar - Contracted Inspector - Conducts interim and final inspections and prepares work
write -up.
Joe Stinar'- Contracted Inspector - Conducts interim and final inspections.
Administrative Costs
ACCAP requires a 14% Administration cost to provide the services as outlined in the Request for
ProposaL ACCAP understands they would be responsible for advertising through final inspection.
Clients would be done on a first come first served basis with a processing schedule of 16 weeks
per client not including construction (Anoka County's Contractor Contract allows 60 days to start
and 6 months to finish).
2K
►— - - -
� -
���
QU, 00000 0
U) p .-
cU 6GT
�6q6a
�
91
co w LO q-
Q�:--
I_ co 1_ T N
}
0
L
T T T T T
Ui 69 6G 6a (fl
�-V
09-
1..L
co N (D 1- 0
O
C' LO
U
Q 0
((00 m
(D
(( j
E
(")N(`DON
N
Q
�fi4ffl�FA
64
cn -o
Z3 0
NNO* - (D
gC9O d'N
LO
N
n
0) (DNt-0
(D
L-
(D CO CD f- C)
tt
CDO(D (-
d
_O
� 69 (f3
�
p
CD P- CO d
�t
T
Z /W
-
qR
a) W
�toton0
t}
Z -Q
"t fV O O N
0
CD
N
•'
(D co C) 0) C7
(D
'
w
r� CO T (D 1 _
Q
4a- Lr
U
O
(�
0)
TTY -O
<n
Q a
It
U
((DD(DP-CDN
(
L U
Q
T
69 (�
(0
L
W
(n
T In T CO O
N P- (D O (')
to l
a0
_
C
d N14 (DO
co
(3
m
N�0)N!-O)
O
��T^^ VT ff—^ 6q ``T^^
L(DD
nE os
EE
0-
O
\J O ! O
E 5
LL-
(D LO
E rn
° �)
�
LO IT CY)
rnrnrnrnrn
(Y)
N
LL T
r
91
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: September 6, 1996
TO: William W. Burns, Executive Director of HRA I qk
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Consider Application to MHFA for Community
Rehabilitation Fund
The Minnesota Housing Finance Agency (MHFA) has announced that it is accepting
applications under its Single Family Super RFP. Applications are due by September
13, 1996. There are eight programs that have been combined into one application
process. After reviewing the RFP documents, HRA and CEE staff are interested in
pursuing funding through the Community Rehabilitation Fund. A summary of the
program is attached.
Proposed Pro ram
Our existing housing rehabilitation program provides a wide array of assistance to
Fridley homeowners with incomes up to $58,650. The programs are intended to
encourage home improvements by offering a low- interest rate loans. A combination
of HRA, MHFA, CDBG, HOME and other funding sources are used to finance the
loans and grants. In some cases, however, homeowners are unable to qualify for
these programs (i.e. income too high for a grant; no equity for a loan). To address
this problem the HRA established a Last Resort Program to help families who "fall
through the cracks ".
The Last Resort Program provides a $10,000 deferred payment loan for basic repairs
and improvements. The loan accrues interest at 2% per year for the first 10 years,
and then no interest for the remaining 10 years. The loan is due in full upon the 20th
year or sooner if the property is sold or transferred. The HRA budgeted $150,000 for
Last Resort Loans this year; so far 3 loans have been made for a total of $15,000.
3
MHFA Community Rehabilitation Fund Memo
September 6; 1996
Page 2
Although these loans must be repaid, it is difficult to project for cashflow and
budgeting purposes when the funds will be returned. To help reduce the uncertainty
and financial impact to the HRA, staff is proposing that we apply for Community
Rehabilitation Funds to pay for 50% of the program cost (excluding administration).
For example, on a $10,000 Last Resort Loan, $5,000 would be provided by MHFA
and $5,000 (plus an origination paid to CEE) would provided by the HRA.
The application to MHFA requests $75,000 in funds to be matched by the HRA. The
total budget would be $150,000, plus an additional amount for loan originations. The
funds would be spent over the course of the next two years as needed.
Recommendation
Staff recommends that the HRA approve the attached proposal to MHFA for $75,000
in funding under Community Rehabilitation Fund.
GF/
M -96 -416
RUA
PROGRAM GOAL
To encourage partnership efforts between MHFA, cities, local lenders, nonprofit
organizations, local governments, community organizations, and other participants by
providing funds to assist communities in improving and preserving designated
neighborhoods and /or geographical areas.
ELIGIBLE PROGRAM APPLICANTS — Cities
Any entity meeting the definition of a city as defined in Minnesota Statute 462C.02,
subd. 6, may apply. (This may include cities, city and county housing authorities, port
authorities, and economic development authorities). If authorized by a resolution of
the city, a nonprofit organization may apply on behalf of a city.
PROGRAM REQUIREMENTS
Loans /grants will be made available in participating communities for the purposes of
acquisition, construction, demolition, rehabilitation, permanent financing, refinancing,
or gap financing of single family housing. (Gap financing is financing to cover the gap
between rehab /new construction costs and the appraised property value. Proposals
that are requesting a gap subsidy, the amount of the gap may be
considered in ranking applications. To calculate the Gap complete the
attached Gap Financing Worksheet).
• Program recipients total income cannot exceed 115% of the greater of the state or
area HUD median income.
• Community Rehabilitation Program funds cannot be used to defray the cost of
administering the program.
• Leveraged funds will be considered when.awarding grants.'
• Partnerships between the city and other local participant(s) must be developed.
• Eligible projects must address housing needs created by existing economic
development. This information is contained in the investment guidelines. See
attached cover letter for copy of guidelines.
FUNDS AVAILABLE — $2,000,000
S2 million in grants currently available to cities for the improvement and preservation
of single family housing in designated neighborhoods or geographical area.
Funds will be awarded to cities in the form of a grant for designated areas. The
minimum grant is $30,000. The maximum grant is $300,000. $650,000 will be
allocated to the Small Grant Pool (requests from $30,000 to $100,000). 51,350,000
will be allocated to the Large Grant Pool (requests greater than 5100,000, but no
greater than 5300,000).
CRF
7/96
APPLICATION /SELECTION REQUIREMENTS
The Selection Committee will be ranking the Community Rehabilitation Fund Program
applications on a scale of 1 -7. Proposals that are strong in the following
Application /Selection Requirements will be ranked the highest.
✓ Describe how the proposal will meet /impact housing needs created by
recent/ongoing local economic development initiatives.
✓ Specifically identify the designated area in which the Community Rehab Funds
will be used. Geographic boundaries must be specific.
✓ Identify the source(s) and amount of funds leveraged, and how program
administrative costs will be paid. Attach letters from other sources indicating the
amount of funds (or services) being committed.
✓ Provide a description of the city's administrative capacity to deliver the program
and the in -house supportive programs, related services and activities that are
relevant to the administration of this program.
✓ Provide a description of the applicants past experience in providing services
similar to those to be provided in the Community Rehabilitation Fund Program.
✓ If your organization is a nonprofit, attach a copy of a resolution by the city's
governing body designating the organization to apply on the city's behalf.
✓ Attach a timeline for administering the program.
✓ Describe what steps will be taken to address affirmative action issues in marketing
the Community Rehabilitation Fund Program.
✓ Attach any additional documents that add validity and strength of the project
described in the proposal.
CONTACT PERSONS: Reed Erickson, 296 -8843 or 800 - 710 -8871
Brian Kluver, 296 -9567 or 800 - 710 -8871
CRF
7/96
3C
PROPOSAL TO PARTICIPATE IN THE
MINNESOTA HOUSING FINANCE AGENCY'S
COMMUNITY REHABILITATION FUND
Submitted by:
City of Fridley
Housing and Redevelopment Authority
Center for Energy and Environment
Submitted to:
Minnesota Housing Finance Agency
St. Paul, MN
September ti, 1996
PROPOSAL TO PARTICIPATE IN THE
MINNESOTA HOUSING FINANCE AGENCY'S
COMMUNITY REHABILITATION FUND
INTRODUCTION
The City of Fridley is a first ring suburb of the Twin Cities metropolitan area. The City of
Fridley's Housing and Redevelopment Authority (HRA) is currently embarking on a citywide
home improvement initiative to address the housing needs of a large majority of the single - family
housing population. In order to accomplish this task, the HRA has contracted with the Center for
Energy and Environment, an independent non - profit corporation based in Minneapolis, to assist
the HRA in program design and delivery.
In the Spring of 1995, the HRA commissioned a Focus Group Study by an independent
consulting firm. The Focus Group Study utilized resident volunteers to discuss the perceived
. housing rehabilitation needs of the City and requested input as to how to address those needs.
The vast majority of the group felt the HRA should design and deliver a comprehensive home
improvement program -that was user - friendly and offered low- interest financing and/or grants to a
broad range of homeowners. Current program guidelines target low income households and
therefore restrict participation by middle income families that need rehabilitation assistance. .
As a direct result of the Focus Group Study, the HRA designed the Fridley Home Improvement
Program. The Home Improvement Program (the "Program ") offers low- interest home
improvement financing at 5% to provide residents with affordable repayment terms for eligible
improvements. The Program also offers the opportunity to receive free remodeling assistance
from the HRA's Remodeling Counselor. The Remodeling Counselor is available to help
residents identify and prioritize improvements, as well as analyze bids_
EXISTING HOUSING PRO( ! -A MS
The HRA is committed to an aggressive marketing approach to insure the Program receives
maximum visihility in the community. The HRA has produced a hrochure (please see enclosed)
Proposal to Participate in MHhA's Community Rehabilitation Fund
Center for Gnern, and Environment
3E
which descrihes the Program and has been distributed to every household in (hc City. In
addition, the HRA held its first Home Remodeling and Garden Fair on April 20, 1996 at the
Fridley High School. The HRA used the event as the kickoff for the Program. Also, the City of
Fridley has established extended hours on Tuesday evenings to allow residents easier access to
City Departments. During these extended hours, HRA and CEE staff members are available to
assist residents with questions they have pertaining to remodeling and financing programs.
Since the Home Remodeling and Garden fair in April, the Program has proven to be a great
success. To date, the HRA has originated over $1.2 million in revolving home improvement
loans. It is important to remember that over 90% of the funds used so far have been provided by
the HRA.
As part of the HRA's home improvement initiative, CEE and the HRA received approval to use
the MHFA Community Fix-up Fund (CFF) Loan Program in the last Super RFP process. The
HRA has targeted several areas within the City where the CFF program can be used. The target
areas were selected by property age and value, median household income, and general condition
of the housing stock.
The City of Fridley has a large percentage of residents that satisfy the household income limits
under the Community Fix -up Fund Program. According-to 1990.cer�sus data, 76% of Fridley
homeowners would be income eligible for the Community Fix -up Fund Program.
While the application for funding under the Community Rehabilitation Fund was not selected for
funding during the last Super RFP process, the HRA has since assessed the current programs
available to Fridley residents and is again making application to MHFA for funding under the
Community Rehabilitation Fund.
The HRA currently has programs that address low income households by using federal
Community Development Block Grants (CDBG) and HOME progams, and its own revolving
loan program which utilizes underwriting guidelines very similar to the MHFA Fix -up Fund, as
age L Proposal to Participate, in MHFA's Community Rehabilitation Fund
Center for Ener��y and Environn'ient
3F
well as the MHFA HELP and Fix -up Fund Loan programs. Howcver, it is hecomin« apparent
that there is a group of homeowners that are not being served under the existing" programs. T'he
HRA would like to address this issue.
PROPOSED LAST RESORT LOAN PROGRAM
When the HRA initially embarked on the Home Improvement Loan Program, a small portion of
the portfolio was set -aside as a "Last Resort Fund ". The Last Resort Fund (LRF) was to be
utilized when all other program options had been exhausted. The LRF is a deferred loan of up to
$10,000. An interest rate of 2% is charged for the first 10 years only, with the remaining 10
years interest free. The loan must be repaid when the property is sold, transfers ownership, or 20
years, whichever occurs first.
While this is a very worthwhile loan program that the HRA would like to continue, the Last
Resort Fund is very strenuous on the cash -flow of the HRA. The HRA would like to apply to
MHFA for funding under the Community Rehabilitation Fund to help alleviate the financial
burden of the Last Resort Fund. The HRA would like to apply for $75,000 to use as a one to one
match with HRA funds. Below is the proposed budget.
Budget
HRA Funds $79,500.00*
MHFA Funds $75,000.00
$154,500.00
* HRA will also pay administrative costs of $300 per loan. Assuming 15 loans are made (at
$10,000.00 per loan) total administrative costs will be $4,500.
Eli(ibility Criteria
1. Candidates for the LRF « ,,ill only include homeowners who arc unable to qualify for
existing HRA and CEE programs.
2. Maximum household income will be $58,650.
Proposal to Participate in NIIJF A's Community Rehabilitation Fund
Center for Energy and Environment
3G
Paoe 3
3. Maximum loan amount «vill be 510,000 - 50 %HRA (plus administrative costs) and
_50% MFHA.
4. Repairs will be limited to those which will bring the property up to 11QS standards for
completion of the project.
Proiect Timing
The LRF is currently in place and available to Fridley residents. Applicants will be taken on a
first -come, first- served basis and prescreened by CEE to determine eligibility status. The HRA
anticipates the LRF funds will be spent over the next two years to meet program demand.
Page 4 hopos<.1 to Participate in Mfil'A", ('oI1Inn.nit% Reh 1)ltltallon 1=uncl
Center for Ener!'v and Euvironnient
3H
AT TA A
Cl,"INTER FOR ENERGY AND ENVIRONMENT'S
CAPABILITIES AND EXPERIENCE
The Center for Energy and Environment (CEE) is an independent, nonprofit (501(c)(3))
organization that has provided energy, environmental and housing rehabilitation services to
utilities, private corporations and public agencies for over fifteen years. CEE services include
financing, building audits, technical research, program design and delivery, and evaluations.
CEE has 40 staff members, including engineers, technicians, statisticians, computer
programmers, and architects, as well as certified energy auditors and finance professionals.
CEE's technical staff have strong analytic capabilities and have published extensively.
Financing
For the past fourteen years CEE has worked cooperatively with a variety of public agencies to
produce innovative financing products that compliment utility and government programs. CEE
has experience with a variety of financing options that have resulted in below market rate
financing tailored to address the needs of sponsoring agencies and target borrowers.
CEE has originated over 8,000 loans totaling over $25 million using a variety of financing .
programs including interest write - downs, revolving loan pools, participations, zero interest
deferred loans and grants. CEE has cooperated with utilities, banks and government agencies to
develop and implement innovative financing resulting in increased energy efficiency and
rehabilitation improvements for 1 -4 unit residential, multifamily and small commercial
structures. CEE has delivered these financing programs in partnership with the following
entities:
Minnegasco
Northern States Power
Minneapolis Community Development Agency
St. Paul Department of Planning and Economic Development
Minnesota Department of Public Service
Minnesota Housing Finance Agency
US Department of Energy
Bank of New England
First Bank, Minneapolis
CEE has experience with Zero Interest Deferred loan financing and using those funds to leverage
conventional loan capital. Zero Interest Deferred loans were used in a joint Minnegasco /CEE
program to provide energy improvements to low income households unable to meet the
underwriting requirements of conventional loans.
CEE is proud of its ability to develop financing programs and leverage capital, and of the high
level of customer service that it provides to borrowers. CEE staff are known for their- "borrower
oriented" focus and receive many referrals from past customers and public agencies as a result.
31
Loan processing times liom application to closing usually take three days or less. Elderly and
handicapped borrower who have difficulty with in- office clos1110s rereivc peruonalized ho
visits from a loan officer_ me
CEE is currently a lender for MHFA's Home Energy Loan Program, Fix -UP Fund, and Rental
Rehab Loan Program. CEE is also the originator for the Rental Loan Fund, a revolving loan pool
under sponsorship of the Minnesota Department of Public Service. In addition, CEE is under
contract to Northern States Power to assist in the processing of NSP- sponsored financing
programs for lighting improvements.
3J
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: September 6, 1996
TO: William W. Burns, Executive Director of HRA q}4,&
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Consider Scattered Site Property Acquisitions
Introduction
So far this year the HRA has acquired three homes under the Scattered Site
Acquisition Program. The properties are located at 560 Hugo St., 6431 Jackson St.,
and 5833 2 -1/2 St. A total of $147,000 was spent on these acquisitions. The goal is
to acquire 7 to 10 properties in 1996 A total of $550,000 has been budgeted in the
Housing Coordinator Fund for acquisition activity this year.
This round includes 3 more homes which would bring the total to 6 acquisitions for
the year. All of the sites were *identified as high priorities during the 1994 housing
condition study and are located in the .Hyde Park neighborhood.
5813 2-1/2 St.
This property is a single family home that was built in 1948. The home has 575
square feet of living area and has one bedroom, a bathroom, kitchen and small living
room /den area. The house does not have a basement. The property is deemed to
be substandard and suitable for acquisition due to the following conditions:
1. Small floor plan and lack of living space.
2. Deterioration of the roofing material, siding and trim on both the house and
garage.
3. Unfinished interior space.
4. Improper furnace installation.
5. Non - conforming lot; property does not meet minimum lot area and width
requirements.
Ii I
Scattered Site Memo
September 6, 1996
Page 2
Several photographs of the property are attached. The property is owned by Keith
Raveling. Staff secured an appraisal of the property and has negotiated a purchase
price of $45,000 which is consistent with HRA negotiation guidelines.
Because the lot is non - conforming it would have to be combined with an adjoining
parcel to become a buildable lot. At this time staff is evaluating options with respect
to the adjoining properties.
5925 Main Street
This property is a single family home that was built in 1949. The home has 822
square feet of living area and has two bedrooms, a bathroom, kitchen and living
room. The house also has a basement. The property is deemed to be suitable for
acquisition due to the following conditions:
1. Floor plan is poorly designed and lacks adequate living space.
2. Signs of deterioration on siding and trim on both the house and garage.
3. Kitchen is partially finished.
4. Loose ceiling tiles.
5. Rotted door sills.
Several photographs of the property are attached. The property is owned by Dan
Stumpf. Staff secured an appraisal of the property and has negotiated a purchase
price of $61,000 which is consistent with HRA negotiation guidelines. The property is
appraised for tax purposes at $61,350.
The lot is 80' x 129' in size and is considered a buildable lot. The site would be
cleared and placed in the HRA's inventory for sale this fall or next spring.
5857 Main Street
This property is a single family home that was built in 1949. The home has 560
square feet of living area on the main floor which contains the bathroom, kitchen and
living room. The house has a full basement which contains the only bedroom in the
house and a small den. The property is deemed to be suitable for acquisition due to
the following conditions:
1. Floor plan is poorly designed and lacks adequate living space. Some rooms
on main level do not have proper ceiling height. Only bedroom is in the
basement.
2. Signs of deterioration on siding and trim on both the house and the garage.
Scattered Site Memo
September 6, 1996
Page 3
3. Damaged ceiling in porch.
4. Rotted wood on front deck.
5. Rotted door sills.
6. Improper heating system; two space heaters are used for source of heat.
Several photographs of the property are attached. The property is owned by Chad
Lusty. Staff secured an appraisal of the property and has negotiated a purchase
price of $56,500 which is consistent with HRA negotiation guidelines. The property is
appraised for tax purposes at $55,818.
The lot is 80' x 129' in size and is considered a buildable lot. The site would be
cleared and placed in the HRA's inventory for sale this fall or next spring..
Recommendation
Staff recommends that the HRA authorize the Chairperson and Executive Director to
enter into purchase agreements for the following properties:
1. 5813 2 -1/2 Street from Keith Raveling for a price of $45,000
2. 5925 Main Street from Dan Stumpf for a price of $61,000
3. 5857 Main Street from Chad Lusty for a price of $56,500
GF/
M -96 -417
i
5813 2 -1/2 Street N.E.
4C
3onowcr Keith Raveling
•roµ:ny Ar,1,11 e 5813 2 12 Street NE
';rty Fridley. _._ _ _County
_enderctrcnt City o_f_Fndiey HRA_
PLAT MAP ADDENDUM Fite No. _ CTK= 73.89______-
Anoka_ _.._ __ State
Address 6431 University Avenue NE, Fridley. Kr 55432_ ___ __ _
11111 - 11111
GlrckFORMS Real Estate Appraisal SoMnrx by Bradf.r .M R.bb,ne (800) 822 -8727
4D
t S,
k
. r•IJ
n~
I�J "t
t.
��
i s�l•r•r
^
c4
r
+
.1 JY.. j...
B q
1
,1
,/f
/
.e
j
q
/e r•P�t �
j
Jl
I'.
I rJ 1,i
l:
J♦
1.
✓l
�/
TQ
_
'N
�N
19
+ z•
z
N
J 2c r
If„
J Q
J ,t
jf-7
1
I .r N
r.�`•'
�t.e'
�
•
f
;t
7—
fA
59TH
AVENUE
W. E.
ale
•• r+L•
,rM-,
��°
f"
_
-
N
-..r.
_..
_ .�
Y
Q
H
i r1
F`
,
:f
/r
/f♦
N'J'
--
�
�
✓
�t
�/f
r'.
_
:yam
/J
y' ��,
/l �
,t
r . —
f
/➢
,
. —LOJr
. .I
,Irr'
�lA
I
•nvFNUC
�.
t.
I'•
58TH
u c
5C
�-�
-....
•y
•i•
11111 - 11111
GlrckFORMS Real Estate Appraisal SoMnrx by Bradf.r .M R.bb,ne (800) 822 -8727
4D
t S,
SKETCH ADDENDUM File No. CTK -7389
o- Keith Raveling_ – _-
- -- -- - -- -- _- - _ — -- - -- - - - - - -. _- _ _ -
--
PropertyAddre- 581321/2 Street_NE . -____
cry _ __Fridley_ _ - county_ Anoka State MN zip Code 55.432 _
_ender Client City of Fridley_HRA Address 64211U Avenue_NE..Fridley M_N 55432
0,1 {WRVS Real E-1 A,br —I Software by Bradford and Roobivs (800) 822 8727
4E
4
I�
1
O"iit
�� cos_ ��v r '.. oaf -,, tti� �'a'd'as• �+ `+•4 `?'. � e. ; : '> .�..:
c yJ
mum
Y
R
I f[i
• 1 7�Sly 4� . ..
A
t'
1
EXTRA SUBJECT PHOTO ADDENDUM Fie No. CTf -_
3orrower Keith Raveling_.
�roaert) %.dares 5813 2_1/2 Street NE
cry Fridley- _ __ County Anoka state MN zio Code 55432
ena „c
City of Fridley HRA_ Address 6431_-UniversitYAvenue NE Fridlley MN 55432
i
Ail
Front of House NW Corner
Subject Garage
i
C lickFOR MS Real E-Ia Appraisal SOft re by Bndbrd and Robbins (800) 922 -0727
4G
EXTRA SUBJECT PHOTO ADDENDUM HcNo. ___ CTK_7389 _ _
Keith Raveling -
�y 5813 2 -112 Street NE_ - — -
- -- --
Anoka _ State MIN ?!p Code 55432
Fridley -
_..-
- A Add 6431, University Avenue NE Fridley MN.55432 _ _ - -_
City of Fridley_HRA - _ _ �es>: -
Living Room
Cli kFORMS Real Estate ISO h r by Bra4fw8lr Robbm (8W) 622 -8727
Then
Bedroom
r�
4H
EXTRA SUBJECT PHOTO ADDENDUM File No. CTK -7389
,rlov,er Keith Raveling
— -— - - —
>Ioacr!y Addrcss 5813 2 1/2 Street NE --
v
Fridley County Anoka State MN----- ZiPCcde 55432
.t
City of Fridley HRA Add, -b 6431 Universi Avenue NE, Fridley, MN 55432
o!
_i
�l 1!
EN-12-
pp", 4; �{%
Den Note exposed Furnace
tsamroom
Shed and west side of Garage
ClickFORMS Real Estate Appraisal Sott— by Bradford and RoWna (800) 822 -8727
41
5857 Main Street N.E.
4J
PLAT MAP ADDENDUM Ffle No. _ CTK -3387 _
3orrm,/ 1
roparty A ens 5307 Main Street_ NE - -- - - - --
y - Fridley__.. _county _ Anoka state MN Zip Code 5543 _
City of Fridley HRA Add/e- 6431 Univers Avm e.NE Fridley, MN 55432
-,
I ! I
i I
Z
�` 1 i
21
a+ Oa f
elf
V•
it
InVI 1 '4.
. ,}: ,•Y , V_ ]' ,.r f
S•
4u
!d.-
�lN
-:_°
�•i
I11
!> .
r�'
.i
.'B
-Ii',
r..l✓'
Am
l ! ?1
�
,
'
•
_
� - I �
� r ♦
1.
1 Z
1.
�I ` 1
T Z
, Y.
�b _
1 -7♦
J
; •L(
2.
a.
•/i
Io
F //1 �..1 ��. ..x -
/i
.M�6 �J J
,.J,t
1� u
-:1,1
/I
�,J ir,
,1.�
\ —J '•
�l
�% _ -�•, Q i /J
TN
1
S !7
'�
i
tit
i
yn.
_ `J'•
i
tf i
z6 t
3 ♦
`itl•
.
L✓ef�
! >-
ce
.' .P -
Ip..�
1
W
IJ•,
r/ K'
Y
Z
'^ {'
FYI
Z -�
1 1.
,,.�
=
I (/7
f•T1
Z 1
./
\+
r
", t
.e ♦
.t
L
.'.o
iv f
P♦
/1 An
1'.r
rg r
1
f
f
tt
�. rc
•.I
_
59TH
AVENUE
N.E.
�(„
pr.
i
r
S4 Joct
z,
—
.r
` °♦
•eao•
�
i •' /l
„t.
i is �
?a"
�v
•y.•
CL
�,.
CY
N
a
on
59
T
rV
58TH
AVENUE
N.E
-,
I ! I
i I
� I•
Z
�` 1 i
`�.`�Y .r B- t L� fNy Y•�' III
W AV E. N E. n
r•• PLACE
C ct
Plat Map
r.kri-J Mn R-1 sane Appra ' SoRwara by Br1d10 and Ro m. (E0W) 622-8727
WI:
4K
SKETCH ADDENDUM Re N.. CTK -7387
.. had Lusty
��• „�s 5"57 F.1ain Street NE
- - -
d:cy County Anoka__ State MN 55432
C y of Fridley HRA Address 6431 University Avenue NE, FndleyMN 55432
ClickFORMS Read Ectate Appraisal Software by Bladlord and Robbins (800) 922 -8727
Iroperty Address _5857 Main Street NE _ - --
y__Fridley _ - _ co.rny_Anoka_ _ state MN Zivcode554 -
�d,C ien[ Ci�( of Fridley HRA Address 6431 University Avenue NE, Fridley, MN 55432 _
< N
I
Front Home View NVV Coiner
Rear of Home From SE Corner
and Additional South Lot
it
)rage Shed
I.C., ••.•
F
F',
n _
EXTRA SUBJECT PHOTO ADDENDUM CTK -7387
iorrcwcr
ro�xm7 y. ��s 5857 Main Sticet NE
Fridle _
—County__ _ Anoka State MN _� Code 5532
o ca =r City of Fridley HRA _ Address 6431 Univers_t y Avenue NE, Fridley, MN 55432
Rear of House and Deck
tf-4-l-
�I�ckFORMS Real EIIIe Appraisal Sok re by Bradley. M Robbins (80C) 827 -8727
Subject Garage
View Across Street From Subject
4N
SUBJECT PHOTO ADDENDUM File No. CTK -7387
—.n y Aed -55 5857 Blain Street NE
- -- -- -- - - - - --
,y Fridley _ - — _ County_ Anoka State MN ZipCode55432
r,der.cient City of Fridley HRA _.._ Address 6431 University Avenue NE Fridley. AN 55432
s: II
FRONT OF
SUBJECT PROPERTY
Address
5857 Main Street NE
Fridley
REAR OF
SUBJECT PROPERTY
STREET SCENE
Chli,FORMS Real Estate Appraisal SoM1ware by BraMwd and Robblm (800) 822-8727
140
F
EXTRA SUBJECT PHOTO ADDENDUM Flee No. CTK -7387
aorrov.er
aroperty _�•._ss 5857 t.4ain Street N_ _
Sri Fridl,ry ov _ _Anoka State MN _ZjpOode 55432 _
rn„ City of Fridley HRA Addre _6431 UnivetsityAv_e_nue NE, Fridley, MN_55432
r'
Living Room
Kitchen
Basement Bedroom - East Side
CI<kFORMS Real Esbte Appraisal SokN a by Bradford aM Robbins (BW) 822-8727
4P
'.la
EXTRA SuBitu t rnv r
3orrcwer
Property Aid 'ss 5857 Main Street NE
ty_ Fridley Anoka State MN zipcode 55432
eder ie• City of Fndley HRA Address 64311— Univers Avenue NE FridlPY, MN_55432 _-
Basement Bedroom - West Side
Note space heater
. 1
Basement Den
i�
The only basement egress win-
dow is located on north side
40
F..
71
ri'�c
5925 Main Street N.E.
PLAT MAP ADDENDUM Fi)eNo. C1 K-7385 _
rower Den St.Ump(
r Add-11 5925 Main Street NE -
Fridley County Anoka_ State ___ MN _ zjp Code 55432
C'L -,-. City of Fridley HRA Add,css 6431 University Avenue NE._F_ridley, MN_55432____ --
21
MO C•O.R
f M 2 y] 1 -{-4 —� i ... Y> - P lT •f' -• 1 w �f .1' Pf ��t ^ '. _Y 2.- �
J , i •Jr' Y`J^ ��` -i �r
zo,rwr� _
hr
H-7.P 4,
W W .�,• W
x 1✓ � v+' Z 1' Z ^ F ./ �N� Z ^ \ � Z 2 ro, 2i
i n ♦ ,z <
v] : ' : f * to • , � to j , :zt; it �,—' ' Dy
?9TH AVENUE N.E. , r ✓ '
+yfA
in
59 TH
'Ile xj
••� �r z
17 4
- -- - - -
i f 59TH AVENUE N. E.
� . �l� �q — �1.ryy iii —u41•; r °� i"
AV E. N.E,..... „.
57 Tr+ a j PLACE
i r a.
Plait Map
1 t
C ca R e +:4 Rear E-te App'alsal Sofa , by B,,df «d and Robbins (800) 6 22 8727
4S
SKETCH ADDENDUM FitetJ., CTK- 7385____
rower Dan S?Iknp1
5925 Main Street_NE
Fridley County _ Anoka State MN _ Zip-Code 554_3_2 _
City of Fridley HRA Address 6431_Uniyers Avenue NE, Fridley, MN 55432____
B-1— Roeo.„s taro; en 8727
4T
it
SUBJECT PHOTO ADDENDUM
nor uaq�tanp(
rrd!ey Couwy Anoka state MN Zipcode55432
- —
City of `rid!ey -HRA _ Address 6431 University Avenue NE Fridley MN 55432
t:
�
ht f
T
2
5
� ".
ivN�My�.^•, . .:
�
. Ear
'a
�: Q0.,
�
�.. y1�Or; ,•, h r
W
4�
FRONT OF
SUBJECT PROPERTY
Address
5925 Main Street NE
Fridley
REAR OF
SUBJECT PROPERTY
i
STREET SCENE ,
Cl— RMS Rea Estate Appraisal Soft— by 8radfad arW Robbim (800) 622 -872]
4U
EXTRA SUBJECT PHOTO AUUtrvu., .,
a t,y county Anoka_ _ state MN_ zp code 55432_ _
City of Fridley HRA Address 6431- University Avenue NE Fridley MN 55432
Rear of House and Patio
Subject Garage
Alley Viewed North
4V
EXTRA SUBJECT PHU(Uiau�.",�_...
orEr -��5 5925 Main Street NE
Fridley County Anoka State MN __Zip code 55432
City of Fridley HRA Address 643.1 University Avenue NE, Fridley, VIN 55432
CI.Ik FORMS Real =safe N,_ I s_(N !e by Bndfwd sM Robbins (800) 822b727
Living Roorn
Kitchen
SE Bedroom
4W
EXTRA SUBJECT PHV I V
5925 P+1& r Street NE
Fridley county Anoka _ State 55432
nat City of Fridle HRA _ Address Wi—Qniversjit Avenue NE Fridley MN 55432
-- - -- - SW Bedroom
View across Street from Subject
Street Scene viewed Northerly
ChckFORMS Real Estate Appraiwl Soft— by BMbrd and Robbins (800) 872-8727
4X
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: September 6, 1996
TO: William Burns, Executive Director of HRA to to
FROM: Barbara Dacy, Community Development Director
SUBJECT: Resolution Authorizing Execution and Delivery of Loan
Documents Between the HRA and the Family Housing
Fund
There is yet another resolution required in order to complete the closing of the HRA
acquisition of the transitional housing four -plex at 380 - 57th Place N.E. At its June
13, 1996 and July`11, 1996 meetings, the HRA previously approved the resolution
authorizing the acquisition of the four -plex from MHFA, a management agreement
between the HRA and Anoka County Community Action Program, and a development
contract and indemnification agreement with the Anoka County Community Action
Program.
The proposed resolution authorizes the HRA Chairperson and Executive Director to
sign the loan documents with the Family Housing Fund. As you will recall, there is a
MHFA deferred_ mortgage which is entirely forgivable as long as a transitional housing
program is operating, and the Family Housing Fund is financing a $20,000, 30 year
deferred mortgage which accumulates 1% interest and is deferred until the end of the
30 years.
Also recall that the HRA approved an indemnification agreement which ACCAP which
holds ACCAP responsible for any costs that would result if the transitional housing
program ceases operation during the course of the next 30 years.
RECOMMENDATION
Staff recommends the HRA approve the attached resolution.
BD /dw
M -96 -418
G
PAGE 2, Resolution No.
Adopted by the Board of Commissioners of the Authority this
day of 1 199.
ATTEST:
Executive Director
wi
Chairman
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: September 6, 1996
TO: William W. Burns, Executive Director of HRA ##46
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Conduct Public Hearing to Award Sale and Authorize
Development Agreement Regarding 6431 Jackson St.
-At its August 8, 1996 meeting, the HRA reviewed three proposals to purchase and
renovate this former HUD home. The HRA accepted the proposal from David Wiger,
Wiger Construction, to buy the home for $40,500 and to complete up to $48,840 in
additional improvements. Wiger's proposal includes the following work:
1. Constructing a 12' x 12' addition off the rear of the home to create a four
season porch.
2. Replacing all of the windows irT the home.
3. Replacing the plumbing, electrical and heating systems.
4. Installing new interior trim, millwork, and doors.
5. Installing new flooring and carpeting.
6. Finishing the upper level bathroom (completely gutted at this time).
7. Re- building the front porch.
8. Re- siding and re- roofing the entire home and attached garage.
9. Landscaping the yard.
To ensure that the work is actually done, the HRA will execute a development
agreement with Wiger which will have the following components:
* Developer must provide an irrevocable Letter of Credit of $48,840 payable to
the HRA and valid for a period of 6 months, starting on October 1, 1996.
* Developer shall have 6 months to complete the work.
6431 Jackson St.
September 5, 1996
Page 2
* Developer shall furnish plans for the addition and a Sworn Construction
Statement for the entire project prior to commencement of any work.
* Developer shall execute a loan note at 5% for the purchase price of the home
($40,500), secured with a first mortgage against the property. The loan is due
in full with accrued interest by March 31, 1997.
* Should the developer fail to perform under the agreement, the HRA has several
options including foreclosure and drawing upon the Letter of Credit.
A copy of the development contract is in the packet; the resolution authorizing its
execution is attached.
By law, the HRA must conduct a public hearing before it can sell or dispose of real
property. A public hearing notice was published in the Fridley Focus and residents
within 350' of the property were notified separately by mail. Staff will make a brief
presentation and Mr. Wiger will be available for questions.
Public Hearing Format
1. Chair entertains motion to open public hearing.
2. Open public hearing.
3. Staff presentation on project.
4. Questions by HRA to staff and /or developer.
5. Questions by public to staff and /or developer.
6. Chair entertains motion to close public hearing.
7. Close public hearing.
6. Award of sale of property and authorize execution of development agreement.
Recommendation
Staff recommends that the HRA award the sale of 6431 Jackson St. to David Wiger,
Wiger Construction based on his proposal to rehabilitate the property. Staff also
recommends that the HRA authorize the Chairperson and Executive Director to
execute a Sale and Development Agreement and other necessary documents.
GF/
M -96 -413
Proposal Form
6431 Jackson Street N.E.
Bidder: _ 0r C 2 ice' 16 '�7 e
Address `6 _NW'i—
City, State, Zip.- "I-el � � j,�� ` S S 1U 7
Phone (Day Time): F-Y &Y
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
eo.upe l.Y.VeV
J4ADt7' /a aN cd Tiri�,u.a�lll3y !r'� L.7` ?.CF C'�, D
AIID/7fcr► LET y+P .4t �ttSS - t*,C.tr, 'er
%N�. � �o v � A,•1' ��� Ol f' y
Please provide 3 references for these projects. Include the address and day time
telephone number.
ass y=
X,6 SA61?,J > Av
7"? C, �6� N p4AC ';�'
s% Ze u.s Pik x ss y 9-7- /
tl
. fi
Proposal Form
6431 Jackson Street N.E_
Page 2
4. 1 would finance the rehabilitation cost (please check which applies)-
Financial institution
' Private party -'�� 1,v �'T K /Z'
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) $yv`'�s
C. Additional Improvements (see Attachment B) $
d. Total Proposed Investment
Certification
$-f oa
1, -019010 W1 GHQ , hereby certify Y 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 if 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 ano er bidder.
Signed:
Date: _ �k f919_,
6C
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 _.. 8
6E
Mininaum Standard~
Required
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_
op>onat Other added items Cie adding
windows, remodeling glass block
wall, adding cabinets_)
2. Living/Dining Room:
a. Remove wall paper and patch
sheetrock-as necessary.
b. Sand and refinish wood floors.
c Tape mud and d h k
Please provide any details or Comments
.l
a �_S
�a k r Ian C e V�"
zt
ll
san s eet roc -
paint with eggshell- / 7 �L • .�< ,� ii
o,orional Other added items (ie. replacing 12��� \A_
i.
painted trim, adding french doors
on cast wall, adding 1/2 bath in — -- � � �•�
extra stairwell, etc.)
>
6F
I /lInimum Standards
Required
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.)
Please provide any details or comments
1
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
- 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_)
5 � iN A P, 4, +5�
r
� l� ` —� ,1 � ..- � �- \ \�. i ♦ Zak �' � ".vim \.,.. , -, .1
6G
N'linimum Required
Standards
Upper Bathroom:
a. Bathroom is currently gutted_
Insulate, install vapor barrier and
sheetrock. Detail any wall treatments
(ie ceramic tile 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:
Please provide any details or comments
=L
ib
zA,
�ItTp�-
'�"
6H
\Z:e
6H
Minimum Require
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.
Please provide any details or comments
_r
optional Other additional items:
e z?\ z Y.e P ?:N. «
6. Lower Level Room
a. Repair or replace doors to the
garage, back yard, 314 bathroom.
p'A' Jl Azrz
.Detail style of new doors, finish, and
> 'r
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
T—
flooring (carpet, tile, wood etc -) and
sq. yard allowance.
\ \ ff
opCGOaal Other additional items (le. 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.)
Ls , A
61
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.
b.. Repair or replace closet door_ Detail
style and finish of new door. Provide
and install coat pole and shelf.
optional Other added items (lie, 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:
10. Sta i rways:
a. Repair or replace treads and handrails
as necessary.
b. Detail floor covering (refinish wood,
install carpeting or runner, etc.)
oplronal Other added items:
Please provide any details or comment,,
I Lk
�1,. 4G Q
'e \ --.t Iii f t lox_- Lc,.
�-Ie 4-2<zC -e C- 1o' ct�f ax i s
� � .�_ \���L -`tom - ��:� � c-� � �p fj • c�-K
` 1��C'•1l Y \t < �\ l�v, - -.c (� c ?� S �1� ti'�c f'"'( -1,s��
6J
Minimum Required
Standards
Please provide anv details or comments
I LExterior:
a. Remove and dispose of aluminum
siding. Repair or replace sheathing
j
k .N ` ` �' �� `" C% / `
as necessary to provide and solid
� `` / �� �' 1 t `
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
rr
portions of the front and back.
[oc�_
Detail any other options.
C".' 4
: z'
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
- �� ��. V% �--� v� ., r7
rafter ends. Detail proposed soffit
and facia material (aluminum or
wood). Provide ventilated soffits to
work with new roof vents-
optional Other added items_ (le changing the ,� �� = : L� �° ��,� ,A s
overhangs, change roof line, etc -)
6K
Minimum Required Please provide any details or comments
Standards
12.Front Porch:
a. The front porch is not very well built
ea 4 ACI l
or well thought out. While the porch
would not necessarily need to be
° "-
rebuilt for occupancy, the BRA does
AAII�t
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
vents to meet current codes. Rotten
or damaged sheathing will need to be
replaced.
211
i'N'linimum Standards
Required
Please provide any details or comments
14_Heatin2:
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
j
replace as necessary_ Waste and vent
}
system will also need to be repaired
or replaced to comply with current
' �'; �-z. , SuS-1 e r> --o coj
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_
t
The entire system will need to be
brought up to code for occupancy.
Include replacing all missing fixtures.
J1 N
Rid �ulnlmlry 1()f-
6.431 _f ickson Stfcct
Cost for minimum amount of work required for occupancy ---------------------------
$
-This is the work written up on the lefi side of the scope of work
Cost for additional improvements ....................... .............$ q C:O
-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:
r�Ji'LV-1
r �
1� iN.� C o-.., C_'fc.._'SG. -- �7,`�_i `J �1'\ � r�'� i� %�� C' �x� C.T �•� �b�i 2'�J 2'`� � _`^\
ProposedRehab ........................................... ..............................� -
+ Contingency ..... o `
'' - ---
------- --------- - - - - -- - - --
RehabTotal .L ................................................ ........................ ......S
HRA RESOLUTION NO. - 1996
RESOLUTION AUTHORIZING EXECUTION OF A SALE AND
DEVELOPMENT AGREEMENT BY AND BETWEEN THE
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF FRIDLEY AND DAVID WIGER, D /B /A AS
WIGER CONSTRUCTION.
WHEREAS, the Housing and Redevelopment Authority in and for the
City of Fridley (the "Authority ") has developed a program to
acquire and demolish or substantially rehabilitate dilapidated,
substandard and unsafe homes to help eliminate neighborhood blight
and decline; and
WHEREAS, the Authority has acquired a single family home at 6431
Jackson St. NE, Fridley, Minnesota (the "Redevelopment Property ")
with the intent of rehabilitating the Property; and
WHEREAS, the Authority has received proposals from private
developers to purchase and rehabilitate the Redevelopment Property;
and
WHEREAS, the Authority has selected a proposal submitted by David
Wiger, D /B /A Wiger Construction (the "Developer "); and
WHEREAS, the Authority requires that the Developer enter into a
Sale and Development Agreement to secure satisfactory performance
and completion of the Redevelopment Property.
NOW, THEREFORE, BE IT RESOLVED THAT, the Authority hereby
authorizes the execution of a Sale and Development Agreement by and
between the Authority and David Wiger, D /B, /A Wiger Construction and
that the Chairperson and Executive. Director of the Authority are
.authorized to sign any necessary documents.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY THIS DAY OF , 1995.
LAWRENCE R. COMMERS - CHAIRPERSON
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
N,60-7
SALE & DEVELOPMENT AGREEMENT
RELATING TO
Lots 22, 23 and the South 2 feet of Lot 24, Block 4, Florence Park Addition to Fridley,
Anoka County, Minnesota
BY AND BETWEEN THE
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF FRIDLEY
AND
DAVID WIGER
SALE R DEVELOP:ti(EN "C AGREENII�N1'
THIS AGREEMENT, made and entered into this day of'
1996, by and between the Housing, and Redevelopment Authority in
and for the City of Fridley (hereinafter called the °HRA "), and David Wier (hereinafter called the
"Developer");
WITNESSETH THAT, in the joint and mutual exercise of their powers and in
consideration of the mutual covenants contained herein, the parties recite and agree as follows:
Section 1. Recitals.
1.01. The property. The HRA now owns the property described in the attached Exhibit
"A ", (the "Property "), located in the City of Fridley, Anoka County, Minnesota.
1.02. Facilities and Project. The Developer, in accordance with HRA approval, plans
and specifications to purchase and rehabilitate on the Property. The Developer shall provide the
HRA with a copy of its plans and specifications showing details on the style, exterior architectural
features, materials, color selections, etc. of the home to be constructed, which plans and
specifications shall be submitted to the HRA for review and approval prior to the issuance of any
building permits on the Property.
Section 2. Sale/Purehase of Property.
2.01. Sale. The HRA agrees to sell the Property to Developer and the Developer agrees
to purchase the Property from the HRA for the purchase price of $40,500.00. Developer will
purchase the Property by Quit Claim Deed with a down payment of $500.00. The balance of
$40,000.00 will be carried on a purchase money mortgage (Exhibit B) at five percent (5 %), which
mortgage and interest will be due and payable no later than , at which
time, if Developer is in full compliance with this agreement, Developer will be provided with a
Quit Claim Deed and Satisfaction of Mortgage.
Section 3. Developer's Representations. The Developer hereby represents, warrants and
covenants to the HRA that as of the date of this agreement the statements set forth in this section
are true and correct.
3.01. No Disability. The Developer is an individual or corporation, authorized to do
business in the State of Minnesota.
3.02. Litigation. There are no pending or, to the knokvIedge of the Developer,
threatened actions or proceedings before any court or administrative avency which will materially
adversely affect the financial condition, business or operation of the Developer or the ability of the
Developer to perform its oblit ation.5 under this A�-,reement.
.O
3.03. Compliance. The Dcvclul�cr will comply with and duly and promptly per-fortn all
of, its obligations under this Agreement and all re.latcd cjucumcnts and instruments_ Developer will
also comply with all State and local codes /ordinances.
Section 4. Developer's Undertakim«s.
4.01. Rehabilitation. Developer shall be solely responsible for the rehabilitation,
marketing and sale of the Property by The minimum selling
price of said property shall be $80,000.00. "The Developer shall be required to comply with their
proposal as submitted on August 5, 1996 and attached as Exhibit B.
4.02. Landscaping. Developer will provide a $500.00 yard/landscaping package
included in the sale price of the home. Said package will specify, at a minimum, tree
sizes /type /number, sodded yards, foundation plantings /beds, and any necessary retaining walls.
4.03. Fees and Charges. The Developer will pay, when due, all permit fees, connection
charges, user charges or other charges lawfully imposed by the City with respect to the Property.
Section 5. Gly's Undertakings.
5.01 Existing Improvements. The City will be responsible for providing a key to the
property at closing.
Section 6. S mn
6.01. Letter of Credit. The Developer will provide the HRA with a letter of Credit in
an amount equal to the anticipated cost of the improvements to be made on the Property. The
form of the Letter of Credit shall be as set forth in Exhibit C (or substantially similar as
determined in the sole discretion of the HRA). The Developer will be. responsible for submitting
the Letter of Credit to the HRA for approval as to form and amount, which approval must be
obtained before any building permits will issue.. As improvements are made to the property, the
HRA agrees -to negotiate with Developer certain incremental reductions in and to negotiate with
Developer certain incremental reductions in and to said Letter of Credit based upon the value of
the improvements made.
Section 7. Default. The failure to meet any condition of this Agreement shall be an event of
default.
7.01. Remedies. If an event of default occurs and is not cured within 30 days of
receiving written notice of said default, the HRA may take one or more of the followinL, actions:
a. suspend performance under this Agreetent;
b. terminate the A�_,reenwiit, vivid any promises r,r ahhrc�� alp
contained in this A�areemeni;
c. draw upon the letter of Credit as referenced in paragraph 6 herein;
d. foreclose upon the mortga�_,e referenced herein as provided by _y�innesc�ta
law.
Section 8. Notices. All notices hereunder shall hC in "Titing and either delivered pe.r�un�dly
or mailed by certified mail, postage prepaid, addressed to the parties at the following addresses:
HRA
Housing and Redevelopment Authority in and for the City of Fridley
6431 University Avenue N.E.
Fridley, MN 55432
Attention: Grant Fernelius
Developer
David Wiger
901 Rice Creek Terrace
Fridley, MN 55432
IN WITNESS WHEREOF, the HRA has caused this Agreement to be executed by its
duly authorized officers; and the Developer has executed this Agreement the day and year first
above written.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF FRIDLEY
By:
William W. Burns
Its: Executive Director
By:
Lawrence R. Commers
Its: Chairperson
DAVID WIGER
6S
STATE Ol MINNESOTA )
COUN'T'Y OF ANOKA )
On this day of _ _ 1996, before me, a Notary Public within and
for said County, appeared to me personally known, who, being by me duty sworn, did say that he
is William W. Burns named in the foregoing instrument, the Executive Director of the Housing
and Redevelopment Authority in and for the City of Fridley, a body politic and corporate under
the laws of the State of Minnesota, and that this instrument was signed as his free act and deed.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF ANOKA )
On this day of , 1996, before me, a Notary Public within and
for *said County, appeared to me personally known, who, being by me duly sworn, did say that he
is Lawrence R. Commers.named in the foregoing instrument, the Chairperson of the Housing and
Redevelopment Authority in and for the City of Fridley, a body politic and corporate under the
laws of the State of Minnesota, and that this instrument was signed as his free act and deed.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF ANOKA )
On this day of , 1996, before me., a Notary Public within and
for said County, appeared to me personally known, who, being by me duly sworn, did say that he
is named in the foregoing instrument, to
me personally known to be the person(s) described in and who executed the foregoing instniment
and acknowledged that they executed the same. as their free act and deed.
Notary Public
6T
EXHIBIT "A"
Lots 22, 23 and the South 2 feet of Lot 24, Block 4, Florence Park Addition to Fridley, Anoka
County, Minnesota
A-NJ!
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
DATE: September 6, 1996
AUTHORITY
TO: William Burns, Executive Director of HRA .4.&
FROM: Barbara Dacy, Community Development Director
SUBJECT: Consider Resolution Authorizing the Issuance and Providing forthe
Repayment of a General Obligation Tax Increment Note in the
Principal Amount of $1,500,000
BACKGROUND
On July 11, 1996, the HRA approved two resolutions authorizing an HRA levy and to authorize
funding of the revolving loan program.
On August 12 and August 26, 1996, the City Council approved its corresponding resolutions
consenting to an HRA levy and authorizing a loan to the HRA for single family rehabilitation
programs.
PROPOSED ACTION
The attached resolution authorizes the issuance of a general obligation tax increment note
which obligates the HRA to repay the City of Fridley the principal amount of $1,500,000 plus
5% interest over fifteen years. The term of the loan begins on February 1, 1997 and matures
on February 1, 2012. There will be two payment dates per year beginning on August 1, 1997.
The amount per payment is $71,666.46.
The note is payable from the tax increments from the existing tax increment districts or other
sources of revenue if adequate tax increment is not available. Remember that the HRA levy
will begin for taxes payable in 1997 and the HRA will be receiving repayments on loans over
time. Based on all these sources, there are adequate funds to repay the loan.
RECOMMENDATION
Staff recommends the HRA approve the attached resolution as presented -.
BD /dw
M -96 -409
7
HRA RESOLUTION NO. — 1996
A RESOLUTION AUTHORIZING THE ISSUANCE AND
PROVIDING FOR THE REPAYMENT OF A GENERAL
OBLIGATION TAX INCREMENT NOTE, SERIES 1997,
IN THE PRINCIPAL AMOUNT OF $1,500,000
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 "Issuer "), as
follows:
Section 1. Statutory Authorization.
1.01. The Issuer and the City of Fridley, Minnesota (the
"City ") have heretofore approved the establishment of
a Modified Redevelopment Plan relating to
Redevelopment Project No. 1 (the "Program ") and Tax
Increment Financing Districts Nos. 1, 2, 3, 6, 7, 9,
10, 11, 12, 13 and 14 (the "TIF Districts ") within
the Program, and approved tax increment financing
plans for the purpose of financing certain
improvements within the Program, all pursuant to
Minnesota Statutes, Sections 469.001 to 469.047 and
Sections 469.174 to 469.179.
1.02. Pursuant to Minnesota Statutes, Section 469.178,
subdivision 3, the Issuer is authorized to issue and
sell its bonds for the purpose of financing a portion
of the public redevelopment costs of the Program.
Such bonds are payable from all or any portion of
revenues derived from the*TIF Districts and any other
revenues or property of the Issuer.
Section 2. Findings.
2.01. The Issuer hereby finds and determines that it is in
the best interests of the Issuer that it issue and
sell its General Obligation Tax Increment Note,
Series 1997 (the "Note ") in the principal amount of
$1,500,000 for the purpose of financing certain costs
of the Program.
Section 3. Issuance, Sale and Terms of the Note.
3.01. The Note shall be issued in the principal amount of
$1,500,000 and shall be sold to the City (the
"Owner ") at the price of par. The Note shall be
dated February 1, 1997, the date of delivery thereof,
shall mature on February 1, 2012, and shall bear
interest at the rate of 5.0% per annum to-the earlier
of maturity or prepayment.
7A
Page 2 - HRA Resolution No. - 1996
Section 4. Form of Note.
4.01. The Note shall be in the form attached as Exhibit A
to this Resolution.
Section 5. Execution and Delivery.
5.01. The Note will be prepared under the direction of the
Executive Director and executed on behalf of the
Issuer by the signatures of its Chairman and its
Executive Director.
5.02. When the Note has been so prepared and executed the
Executive Director will deliver the same to the City
upon receipt from the City of $1,500.00.
Section 6. Security Provisions.
6.01. The Note is payable from tax increments ( "Tax
Increments ") received by the Issuer from the TIF
Districts. If any payment of principal or interest
on the Note will become due when there is not
sufficient receipt of Tax Increments in the year the
payment is owing to pay the same, the Issuer's
Finance Officer will pay such principal or interest
from the general fund or from any other revenues or
property of the Issuer, and the general fund will be
reimbursed for such advances out of.the proceeds of
Tax Increments when received.
PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF FRIDLEY•THIS• DAY OF ,
199
LAWRENCE R. COMMERS - CHAIRPERSON
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
Q
Page 3 - HRA Resolution No. - 1996
EXHIBIT A
199_ $1,500,000
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
HOUSING AND REDEVELOPMENT AUTHORITY
In and For
THE CITY OF FRIDLEY
GENERAL OBLIGATION TAX INCREMENT NOTE
(SERIES 1997)
The Housing and Redevelopment Authority in and for the City of
Fridley, Minnesota (the "Authority "), hereby acknowledges itself to
be indebted and, for value received, promises to pay to the order
of the City of Fridley, Minnesota, a municipal corporation, or its
registered assigns (the "Owner ") solely from the source, to the
extent and in the manner hereinafter provided, the principal amount
of this Note, being One Million Five Hundred Thousand Dollars
-($1,500,000.00) (the "Principal Amount "), together with interest
thereon from February 1, 1997 at a rate of five percent (5.0 %), on
the dates (the "Scheduled Payment Dates ") set forth on the Payment
Schedule attached as Exhibit A hereto and in the amounts stated
thereon (the "Scheduled Payments "). This note shall be payable in
semiannual installments commencing on August 1, 1997, and on the
1st day of February and August thereafter until and including
February 1, 2012.
Upon 30 days, prior written notice from the Authority to the
Owner, the Principal Amount is subject to prepayment at the option
of the Authority in whole or in part on any Scheduled Payment Date.
Each payment on this Note is payable in any coin or currency
of the United States of America which on the date of such payment
is legal tender for public and private debts and shall be made by
check or draft made payable to the Registered Owner and mailed to
the Registered Owner at its postal address within the United States
which shall be designated from time to time by the Registered
Owner.
The Note is a general obligation of the Authority, which has
been issued by the Authority pursuant to and in full conformity
with the Constitution and laws of the State of Minnesota, including
Minnesota Statutes, Section 469.178, Subdivision 3, to aid in
financing a "project ", as therein defined, of the Authority
consisting generally of defraying certain public redevelopment
costs incurred and to be incurred by the Authority within and for
the benefit of its Redevelopment Project No. 1 (the "Program ").
7C
Page 4 - HRA Resolution No. - 1996
The Note is not a general obligation of the City of Fridley,
Minnesota (the "City ") or the State of Minnesota (the "State "), and
neither the City, the State nor any political subdivision thereof
shall be liable on the Note, nor shall the Note be payable out of
any funds or properties other than funds and property of the
Authority and from tax increment resulting from increases in
taxable valuation of real property in the Authority's Tax Increment
Financing Districts as set forth in the Resolution, authorizing the
issuance of the Note, to which reference is made for a full
statement of rights and powers thereby confined.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions,
and things required by the Constitution and laws of the State of
Minnesota to be done, to have happened, and to be performed
precedent to and in the issuance of this Note have been done, have
happened, and have been performed in regular and due form, time,
and manner as required by law; and that this Note, together with
all other indebtedness of the Authority outstanding on the date
hereof and on the date of its actual issuance and delivery, does
not cause the indebtedness of the Authority to exceed any
constitutional or statutory limitation thereon.
IN WITNESS WHEREOF, the Authority has caused
executed by the manual signatures.of its Chairman
-Director and has caused this Note to be dated
Chairman
This instrument was drafted by:
Casserly Law Office, P.A.
Suite 1100 Southpoint Office Center
1650 West 82nd Street
Minneapolis, MN 55431
7D
this Note to be
and Executive
, 199
Executive Director
Page 5 - HRA Resolution No. - 1996
CERTIFICATE OF REGISTRATION
It is hereby certified that the foregoing Note, as originally
issued on , 199_, was on said date registered in
the name of the City of Fridley, a Minnesota municipal corporation,
and that, at the request of said Owner of this Note, the
undersigned has this day registered this Note as to principal and
interest on the Note in the name of such Owner, as indicated in the
registration blank below, on the books kept by the undersigned for
such purposes.
Name of
Registered Owner
City of Fridley,
Minnesota
Date of Signature of
Registration Executive Director
7E
, 199
Page 6 - HRA Resolution No. - 1996
EXHIBIT A
PAYMENT SCHEDULE
SCHEDULED PAYMENT DATES SCHEDULED PAYMENTS
August 1,
1997
$71,666.46
February
1, 1998
71,666.46
August 1,
1998
71,666.46
February
1, 1999
71,666.46
August 1,
1999
71,666.46
February
1, 2000
71,666.46
August 1,
2000
71,666.46
February
1, 2001
71,666.46
August 1,
2001
71,666.46
February
1, 2002
71,666.46
August 1,
2002
71,666.46
February
1, 2003
71,666.46
August 1,
2003
71,666.46
February
1, 2004
71,666.46
August 1,
2004
71,666.46
February
1, 2005
71,666.46
August 1,
2005
71,666.46
February
1, 2006
71,666.46
August 1,
2006
71,666.46
February
1, 2007
71,666.46
August 1,
2007
71,666.46
February
1, 2008
71,666.46
August 1,
2008
71,666.46
February
1, 2009
71,666.46
August 1,
2009
71,666.46
February
1, 2010
71,666.46
August 1,
2010
71,666.46
February
1, 2011
71,666.46
August 1,
2011
71,666.46
February
1, 2012
71,666.46
FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 5
Schield Construction Company
13604 Ferris Avenue South
Apple Valley, MN 55124
i
Stonybrook Creek Bank Restoration
Project No. 246
Estimate No. 6 . . . . . . . . . . . . . . . $//316,754.03
Hardrives, Inc.
14475 Quiram Drive
Rogers, MN 55374 -9461
Street Improvement Project
No. ST 1995 -1 & 2
Estimate No. 6 . . . . . . . . . $123,392.46
No persons in the audience spoke /regarding the proposed consent
agenda items.
MOTION by Councilman Schneider to approve the consent agenda items.
Seconded by Councilwoman Jo enson. Upon a voice vote, all voting
aye, Mayor Nee declared th motion carried unanimously.
ADOPTION OF AGENDA:
MOTION by Councilman Billings to adopt the agenda as submitted.
Seconded by Counci an Schneider. Upon a- voice vote, all voting
aye, Mayor Nee de ared the motion carried unanimously.
OPEN FORUM, VIVTORS :
Ms. Shirley/Arbor, 125 79th Way, questioned what was being done
about the mes at the corner of East River Road and Osborne Road.
She state that this is a nice area with homes ranging in the
$100,000 /plus, but the first two homes coming into the area are not
attract've and unkept, with parties held there all the time.
Coun lwoman Jorgenson stated that the City is working with the
Pol'ce Department and the Code Enforcement Officer. Some citations
h e been issued. The City is aware of this situation, and it is
ing followed closely.
NEW BUSINESS:
12. RESOLUTION NO. 58 -1996 CONSENTING TO THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY
A- UUL'T-L!�(y 1996 TAX LEVIES COLLECTIBLE IN 1997:
Ms. Dacv, Community Development Director, stated that this
resolution gives consent to the Fridley Housing and Redevelopment
Authority (HRA) to .impose a levy for a tax on all real - property in
the City. This action is a small portion of a larger issue which
involves rehabilitation of the housing stock. Fr_idley's population
7G
, `�
� 'Y :F; O� AUGUST 12 1 -
rI
l hE nco ie_ structur� cho! s
1 s o _
1��T,g
T I
and there
a. �a, iti p0 u-
3 11L10 1c 1 hC tl I > nol e adu-1tS, SlIlole _ 1 �.�, an(j empty
S -T
✓' O iir E't1 -Il(:q i,C it -a _:; 5 i 11 i 11 =1UT1
Ms. Dacy stated that the City has adopted a housing program to give
people a reason to stay or move to Fridley and to create housing
Opportunities to prevent blight and provide neighborhood stability_
Rehabilitation programs using State, Federal, Community Development
Block Grants, and HRA funds have been initiated tc remove blighted
housing. Programs have been initiated for first -time home buyers,
and a rental inspection program is now in place.
Ms. Dacy stated that there needs to be a mechanism, to maintain the
housing stock, and there will be further demands for
rehabilitation. The HRA and the Council will have to evaluate the
financial impact of redevelopment projects, as there are scattered
pockets of housing that- are- severely_ deteriorated. The loan
program for 'rehabilitation is not-a- solution to all the -housing
problems but part of an attempt-to prevent blight in the community
Mr. Fernelius, Housing Coordinator, stated that the HRA tax_levy:is
authorized under state law_ .The: levy would be used to support the
revolving -loan program,, focusing on single famly, housing
rehabilitation The;- levy._would be usedras- capital -,to, create the
oan program, :and the =loan would =be repaid; through - the tax levy
payments......
Mr. Fernelius stated that the loan to, the HRA would be for $1.5
million amt an interest rate of five `percent over a fifteen -year
period F ;AIl''` - property 3n the' C3t' would be assessed for taxes"
payable in '1597. The' lev wouldV " ' �'
Y generat -e $� 68 J, 9 3 in 1997 or' " ".' 04 41
percent of the total market value in',*the City_ The impact on a
single family home usin
g,,an average value of $88,000 would- be an
increase in taxes of about $12.00 per dear. In terms of industrial
property, using a value" of $9; 500, 000; - =•the increase—in taxes would
be about'$1,300 per year. -, -The tax- -levy has to be approved by the
Council on an annual basis.
Mr. Fernelius stated that several other suburbs have enacted HRA
t
ax levies_ Bloomington collects $643,000, which is used for
g 71 ral adR1nl��at1.On as well as housing r °r- �� h�; - -� ✓'� _1 �✓r
l_ CGS Ile,(- = _�00, ����� � � economic de"7e - -
- C �✓ r
._ :Lam _? r•`'ll�? -_. �J
;_
7H
FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 7
City has a stie)stantial amount of housing units approaching thirty
years of age. Older housing requires more attention and has some
marketing implications in comparison with other suburbs in terms of
amenities. The 1994 study evaluating housing conditions showed
that there are a minimum of 900 homes in the City requiring some
repair.
Mr. Fernelius stated that another factor for a revolving loan
program is that the private sector is not providing financing for
rehabilitation to those persons that have higher debt loads or who
lack equity in their home. Also, there is not sufficient federal
funding available, and it is important to access the City's ability
to address housing conditions now rather than responding to a
crisis down the road.
Mr. Fernelius stated that the HRA fund balances will decline in the
next fifteen years due to other redevelopment activities. This
levy would provide a funding source, and the program could become
self - sufficient. The HRA considered this tax levy and passed a
resolution adopting a levy for taxes payable in 1997. If Council
adopts this resolution, the loan agreement would be discussed at
the August 26 Council meeting.
Councilwoman Jorgenson_ asked for what purpose the loans would be
used.
Mr. Fernelius stated that homeowners use the loans for replacing
roofs, siding, windows, and other repairs and improvements to their
homes.
Councilman Schneider stated that the City is now involved in a
rehabilitation program. However, this would expand the program and
allow more persons to participate. One issue the City has
identified as a priority goal is programs to improve the housing
stock. The better people feel about their homes, the better it is
for the community. This seems to be a step in the right direction,
as the value of everyone's home will increase and offset the
dollars invested.
Mr. Pribyl stated that the levy is for the HRA but does require the
consent of the City Council.
MOTION by Councilman Schneider to adopt Resolution No. 58 -1996.
Seconded by Councilwoman Jorgenson. Upon a roll call vote,
Councilman Schneider, Councilwoman Jorgenson, Councilman Billings
and Mayor Nee voted in favor of the motion and Mayor Nee declared
the motion unanimously.
1-3. INFORMAL S'iATIJS REPORTS:
Mr. Pribyl, Acting City Ma
forrr. -.?. status reports.
71
r, stated that were no
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: September 6, 1996
TO: William Burns, Executive Director of the HRA 91pA.-
FROM: Barbara Dacy, Community Development Director
SUBJECT: Consider Appeal of Commissioner's Determination
Regarding Cherrywood Apartments
The Commissioners for the Cherrywood Apartment condemnation proceedings have
- determined the value of the Cherrywood Apartments to be $1,557,814. At the time of
acquisition in June 1995, the HRA deposited $1,224,000 at the County. If the
Commissioner's determination is not appealed, the HRA would pay an additional
$333,814 plus approximately $18,360 of interest.
The Executive Director and Chairperson have discussed the award amount with Fritz
Knaak, HRA Attorney. It is recommended that the HRA pass a motion to authorize
the HRA Attorney to initiate an appeal of the Commissioner's determination. '
BDJdw
M -96 -411
C,
•
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: September 6, 1996 c
TO: William W. Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Monthly Housing Report
A total of 13 loans and grants were made during the month of August for a total of
$183,436. Through the end of August, 115 loans and grants were made for a total of
$1,351,234. Of this figure, the HRA has provided $1,194,952. According to CEE
there are still 40 applications pending approval, however it is unclear' when these
loans will actually close.
Also, at the August 8th HRA meeting Commissioner Meyer requested a report on the
type of repairs that have been made through the program. A list is attached showing
the various categories of repairs: Please note that the repairs do not correspond to
the number of loans; for example one loan may involve more than one type of repair.
As you can see, the most common repairs include windows, doors, roofs, HVAC
systems, landscaping, general remodeling, siding and trim, and kitchen and bathroom
remodeling.
GF/
M -96 -414
F
Fridley Housing Program
Repairs by Category
Type of Repair
Frequency
%
Windows / Doors
35
13%
Roof
24
9%
HVAC
24
9%
Landscaping
20
8%
Other Remodeling
19
7%
Siding / Painting / Re— Stucco
19
7%
Bathroom Remodel
16
6%
Soffit / Fascia / Trim / Gutters
15
6%
Kitchen Remodel
15
6%
Electrical
13
5%
Driveways
13
5%
Carpet / Other Flooring
11
4%
Painting / Staining
10
4%
Garage (Construction)
6
2%
Finishing a Basement
6
2%
Plumbing
5
2%
Room Additions
5
2%
Grading / Drainage
5
2%
Garage (Remodel /Expansion)
5
2%
266
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: September 6, 1996
TO: William Burns, Executive Director of HRA 441b-
FROM: Barbara Dacy, Community Development Director
SUBJECT: Request for. Street Lights Along Osborne Road
A copy of Bob Schroer's July 22, 1996 letter was included in the August HRA packet.
Mr. Schroer and Mr. Fitch are requesting that the-HRA install double ball light
- standards at the Osborne Road and University Avenue intersection.
I spoke with Mr. Schroer on September 6, 1996 regarding his request. One of the
options that he has suggested is to install the street lights. on the north side of
Osborne Road from Main Street to the service drive, and then north past Kennedy
Transmission and possibly in front of ABRA Auto Body. Mr. Schroer also suggested
that the lights be installed in front of the new construction projects underway on
Osborne Road between the railroad tracks and Main Street. Steiner Development is
building a 110,000 square foot office /warehouse building at the northwest corner of
Main Street and Osborne Road. Another industrial building on the south side of
Osborne Road will be under construction soon (it was destroyed in the recent wind
storm) .
Mr. Schroer feels that the northern end of town is lacking the visual amenities that
now exist at University Avenue and Mississippi Street, and at Highway 65 and East
Moore Lake Drive. He feels that the street light installation would "brighten" the area
and would be a nice "complement" to the new construction now under way on
Osborne Road.
History
Mr. Schroer made a similar request in 1992 (see my letter dated December 18, 1992).
A number of options were identified in my letter, ranging from $25,480 to as much as
$330,600. In 1992, 1 advised Mr. Schroer that there were other priorities that the HRA
10
Request for Street Lights; Osborne Road
September 6, 1996
Page 2
were considering (single family and multiple family rehabilitation programs), and that
any request for projects such as street lighting would have to compete for available
funds. I suggested that if he and the property owners would be willing to agree to
pay for the installation costs and the ongoing maintenance, that would be an option
that the HRA could initiate on behalf of the owners.
Recommendation
No action is recommended at this time. Prior to Thursday's meeting, I will prepare
maps of the options that I prepared in 1992 as well as update the costs of installation
and maintenance. There is no question that the street lights do add to the appeal of
the area, and make a nice impression of the community. The financial impacts,
however, need to be evaluated and weighed against other priorities. One of the
options that I will investigate is how much a street light assessment district would cost
the adjacent owners.
BD /dw
M -96 -420
10A
i
10 B
&BN oB s Produce Ranch 2 4
7620 UNIVERSITY AVE. N.E.
FRIDLEY, MN 55432
Prod�c� 1�gflch PHONE: (612) 571 -6620
FAX: (612) 571 -5477
r.
Executive Director
Bill Burns
Fridley H.R.A.
6431 University Ave. NE
Fridlev, Minn. 55432
Dear Mr. Burns:
Julv 22. 1996
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 reauest that the HRA committee consider or
recommend installations of the Citv type liahtina that you had
insta.11ed on Mississippi and University 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
L
eel this area warrants additional liahtina for beautifications and
to improve security.
If vour committee would consider t:nis proiect. we as landowners
would, at our expense, like to install a low profile white vinvl
rail fence alona Osborne Road and along t'he service give to boB's
Produce Ranch.
Our wishes are that the committee can react expeditiously so that
this yroiect 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 -you for vour consideration
on this important beautification proiect_
Since_e'v.
BoB Schroer
BOB'S Produce Ranc}:
0
GTYOF
FRIDLEY
FRIDLEY MUNICIPAL CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY. MN 55432 • (612) 571 -3450. FAX (612) 571 -1287
December 18, 1992
Robert Schroer
Bob's Produce Ranch
7620 University Avenue N.E.
Fridley, MN 55432
Dear Mr. Schroer:
In your letter of September 1992, you had inquired about the cost
of light standards similar to the ones at Moore Lake Commons along
Osborne Road and from Osborne Road to 85th Avenue.
The double bulb light standards installed along East Moore Lake.
Drive in the Moore Lake Commons shopping area cost about $1,730
each in 1988. We recently received a cost estimate for the same
light standards to be installed along Mississippi Street at about
$3,130 per light standard. This cost does not include the cost for
ongoing electricity. As part of a larger project such as the one
you suggested between Osborne Road and 85th Avenue, a bidding
process may reduce the cost of the lights below $3,000.
Your letter seemed to indicate a desire to have the lights
installed along the frontage road from Osborne Road north to 85th
Avenue. At a spacing of 150 feet (which is 50 feet longer than the
spacing at Moore Lake Commons), total cost would be approximately
$115,810 for 37 lights at $3,130. This cost would be for the light
standards along one side of the frontage road and not two sides of
the road as is done at the Moore Lake Commons development. If both
sides of the service road would have light standards, the cost
would double.
Another option is to continue the light standards south of the
Osborne frontage road to the intersection of 73rd Avenue. Again,
if light standards are used on one side of the service road, the
total cost for 53 light standards would be $155,300. If lights
are installed on both sides of the service road, the cost would be
$330,600.
Another alternative is to install light standards on the west side
of University Avenue along Osborne Road to the railroad tracks.
Twelve light standards on both sides of Osborne Road,_six on each
side, would cost approximately $25,480.
10C
Robert Schroer
December 18, 1992
Page 3
The Housing and Redevelopment Authority (HRA) and the City Council
have prioritized the use of tax increment monies for the
development of single family and multiple family rehabilitation
programs. Because of the age of our housing stock and because of
the changing demographics in the metropolitan area, we are
currently developing rehabilitation loan and grant programs to
correct substandard housing and to maintain and improve housing
quality. At the current time, beyond the Moore Lake Commons and
Mississippi Street improvement projects, the HRA has not discussed
the funding of lighting projects. Originally, when the University
Avenue Corridor study was contemplated in the mid- 1980's, an
extensive lighting program coupled with intersection improvements
was contemplated. The HRA and City Council, however, have
Postponed further consideration on those improvements because of
the emphasis on the housing programs and because a light rail
transit route is planned by Anoka County to be installed along the
east side of the University Avenue right -of -way.
If you would 1!�. to initiate a petition among affected business
owners for any ._ -he alternatives cited above, you are encouraged
to do so. If the property owners agree to pay for the installation
costs and ongoing maintenance, I -would be more than happy to
discuss the - _project with the HRA and City Council. I cannot
guarantee that the HRA will participate to any extent in this type
of project given the current priority on housing programs.
I will make the HRA aware of your letter and request during their
upcoming budget discussion for 1993. Should you need further
information, please feel free to contact me.
Sincerely,
Barbara Dacy
Community Development Director
BD:ls
cc: William Burns, City Manager
John Flora, Public Works Director
Jon Olson, Anoka County
C -92 -363
SEP i 1 X992
i BoB's Produce Ranch ,
D*DS 7620 UNIVERSITY AVE. N.E. 4, `
FRIDLEY, MN 55432
Produce ��hch PHONE: 571 -6620
FAX: 571 -5477
City of Fridley
6431 University Ave
Fridley, MN 55432
Mr. Bill Burns
Mr. Bill Burns:
As we at BoB's move into the 21st century and up -grade our
property on University Ave and Osborne Rd. We would like the city
staff to investigate the cost of installing the new outdoor lighting
system, (similar to Moore Lake Commons) on the service road by us.
As a long term project, it would be nice to have the lighting
beautification system extend from the Wal -Mart store to Osborne Rd.
We feel that the area business would-be very receptive to the
lighting improvement and would participate in such a plan. When some
of the information on costs become available, we would be more than
happy to meet with staff to review plans. With the county upgrading
Osborne Rd. soon, this might be a good time to look at the
improvement.
Robert Schroer
BoB's Produce Ranch
10E
MEM��NDUM
MOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: September 6, 1996
TO: William Burns, Executive Director of the HRA ,AI
FROM: Barbara Dacy, Community Development Director
SUBJECT: Review Proposed Fair Housing Ordinance
Fritz Knaak, in conjunction with Jodee Kozlak of Greene Espel, has prepared a
proposed Fair Housing Ordinance as required by the Settlement Agreement with the
Sylvan Oaks Tenants Association. The ordinance states that it is the policy of the City
of Fridley to promote and fully comply with the provisions of the Federal Fair Housing
Act. The ordinance also adopts by reference certain statutes of the Minnesota
Human Rights Act as the "fair housing standards" for the City of Fridley.
Any violation of the ordinance is considered to be a misdemeanor, punishable by a
fine of up to 90 days and $700 for each occurrence. The enforcement section of the
ordinance provides the City with the ability to refer investigation and enforcement of
complaints to the Department of Human Rights at the State.
No action is needed by the HRA at this time. The ordinance will be referred to the
City Council for action in October.
BD /dw
M -96 -410
.._ 07 130 196 13:38
!U16124901580
HOLSTAD AND LRSN
( 002 /pad
ORDINANCE
AN ORDINANCE OF THE CITY OF FRIDLEY, MI NNESOTA AMENDING THE CITY
CODE TO INCLUDE q NEW CHAPTER 221 ENTI
PRACTICES ", INCORpO TLED "FAIR HOUSING
RATING BY REFERENCE CERTAIN PROVISIONS O
MINNESOTA STATUTES CHAPTER 363 AND 42 U.S
TITLE Vlll OF THE CIVIL RIGHTS ACT, ALSO KNOWN U.S.C. SECTIONS FEDERAL AI
HOUSING ACT, FOR THE PURPOSE OF PROHIBITING O THE FEDERAL FgIR
CERTAIN PRACTICES WITHIN THE CITY OF F OR RESTRICTING
SALE, LEASING AND RENTAL OF REAL ESTATE LEY AS THEY RELATE TO THE
The City Council of the City of Fridley, Minnesota hereby ordains:
That a new section of the City Code of the City of Fridley is enacted and will d
follows: read
221. FAIR HOUSING PRACTICES
221.01. STATEMENT OF POLICY. FAIR HOUSING
1. It is the policy of the City of Fridley to promote and comply fully with the provisions
of the Federal Fair Housing Act, also known as Title VII of the Civil Rights Act of 1968,
as well as the provisions of the Minnesota Human Rights Act as they relate to the sale,
rental or leasing of real estate within the boundaries of that City.
2. The City of Fridley has determined that it is in the best interests of its citizens to
expressly provide in its own City Code those provisions of law which provide for
protection of rights in obtaining, by purchase or rental, adequate housing without fear
of unlawful discrimination. The provision for these rights in the City Code, and their
enforcement and protection, is done with the intention of supplementing and amplifying,
and not in any way reducing or restricting, the rights already provided under existing
State and Federal law.
221.02. ADOPTION OF MINNESOTA FAIR HOUSING STANDARDS
1. Except as may otherwise be qualified or expressly modified by these provisions,
Minnesota Statutes Section 363.03, subdivisions 2 and 2a, one copy of which is on file
in the office of the City Clerk of the City of Fridley, Minnesota, is hereby adopted as the
Fair Housing Standards Ordinance of the City of Fridley, Minnesota. Any act defined
as discrimination or discriminatory, within the meaning of those provisions, that occurs
in the City of Fridley will be a violation of this ordinance.
11A
07/30i96 13:39 $16124901580 HOLSTAD AND LRSN y� 003.005
-1 1
22.03 PENALTIES
1. Any discriminatory act occurring in the City of Fridley in violation of the provisions of
this ordinance shall be a misdemeanor, punishable by fine of up to 90 days and $700
for each occurance.
2. Nothing in these provisions shall in any way limit or restrict any person aggrieved by
a discriminatory act governed by the provisions of this ordinance from seeking such
additional remedies as may be available and provided under either applicable State or
Federal law.
222.04 ENFORCEMENT
1. All criminal charges brought under these provisions shall be by a sworn, written
complaint.
2. In all instances in which an allegation of a violation of this Title is brought-to the
attention of the City, the City may, in its discretion, investigate the matter utilizing its
own staff and personnel, or defer the matter to the personnel of the State of Minnesota
where an investigation is to occur under the relevant fair housing provisions of the
Minnesota Human Rights Act. In any case in which State personnel are utilized for
purposes of investigation of any alleged violation of the provisions of the relevant
provisions of the Minnesota Human Rights Act, those personnel shall have full
authority to charge and prosecute violations of the City's Fair Housing Code on behalf
'of the City of Fridley in addition to any other remedies and penalties as maybe
available to them under State law.
ENACTED this day of , 1996.
11B
07i30/�6 13:39 '8`16124901580 HOLSTAD AND LRSN ?,,004i005
S fined:
William J. Nee, Mayor
City of Fridley, Minnesota
Attest:
William Charnpa, City Clerk
City of Fridley, Minnesota
11C
CONTINUE FROM PREUIOUS PPSE 001
I 363.03 DEPART'MEN'I. OF HUMAN RIGHTS
- - fi.>
1196
1197
restructuring, modified work schedules, rLmssignment to a vacant position, acquisition
j or modification of equipment or devices, and
for inspection, sale, rental, c
the provision of aides on a temporary or
j periodic basis.
withhold any real property
j In determining whether an accommodation would impose an undue hardship on
the operation of a business or organization, factors
group of persons because of
tus, status with regard to pul
to be considered include:
tus; or
(a) the overall size of the business or organization with respect to number of
employees or members and the number and type of facilities;
(b) to discriminate ag;
(b) the type of the operation, including the composition and structure of the work
national origin, sex, manta:
sexual orientation, or famil
force, and the number of cmployccs at the location where the employment would occur-,
?^
rental or lease of real proper
(c) the nature and cost of the needed accommodation;
therewith; or
(d) the reasonable ability to finance the accommodation at each site of business;
(c) to print,, circulate,
and
advertisement or sign, or u <.
(e) documented good faith efforts to explore less restrictive or less expensive alter-
z
4"
of any real property or mak
purchase, rental or lease of r
natives, including consultation with the disabled person or with knowledgeable dis-
abled persons or organizations.
A prospective employer need not pay for an accommodation for a job applicant
= :
gin, sex, marital status, state
tion, or familial status or
_if it is available from an alternative source without cost to the employer or applicant.
a.
discrimination except that
Subd, 1 a. Disclosure of medical information. if any healthcare records or medical
advertisement of a dweliin;
information adversely affects any hiring, firing, 'or promotional decision concerning an
; `.
advertisement reasonably t
applicant or employee, the employer must notify the affected party of that information
discrimination because of 1
da s f41ftfina) decision.,
(3) For a person, bank;
u d. 2. Real proper y:`It is an unfair discriminatory practice:
j<
pang, or other financial inst
n ner, essee, sublessee, assignee, or managing agent of, or other person
assistance for the purchase
having the right to sell, rent or lease any real property, or any agent of any of these:
maintenance of any real pr
(a) to refuse to sell, rent, or lease or otherwise deny to or withhold from any person
(a) to discriminate agz
or group of persons any real property because of race, color, creed, religion, national
creed, religion, national or
origin, sex, marital status, status with regard to public assistance disability, sexual ori-
tance, disability, sexual orir
entation, or familial status; or
or of the prospective occup;
to discriminate against an
ga'
(b) y person or group of persons because of race, color,
creed, religion, national origin,
ing, extending, modifying c
of the financial assistance,
sex, marital status, status whh.regard to public assis-
tance, disability, sexual orientation, or familial status in
(b) to use any form of
the terms, conditions or privi-
leges of the sale, rental or lease of any real property or in the furnishing of facilities or
inquiry in connection w.
services.in connection therewith, except that nothing in this clause shall be construed
to prone —i—i Mite adoption of reasonable rules intended to
d i
di or indirectly, any 1
creed, religion, national or
protect the safety of minors
in their use of the real property or any facilities or see vices furnished in connection
Lance, disability, sexual or
therewith; or _
limitation, specification, o�
(c) in any transaction involving real property, to print, circulate or post or cause
to be printed, circulated, or posted any advertisement or sign, or form
(c) to discriminate age
ease, acquire, construct, i
gn use any of
cation for the purchase, rental or lease of real property, or make any record or inquiry
urban or rural area or any
in connection with the prospective purchase, rental, or lease of real property which
ronmental conditions of t}
expresses, directly or indirectly, any limitation, specification, or discrimination as to
race, color, creed, religion, national origin, sex, marital status, status with regard to pub-
or renewing, n in the rate
or in the exten sion of sery
lic assistance, disability, sexual orientation, or familial status, or any intent to make any
such limitation, specification, or discrimination
(4) For any real estate
areal property transaction
except that nothing in this clause shall
be construed to prohibit the advertisement of dwelling unit as available to adulls -only
bers may benefit financia,
if the person placing the advertisement reasonably believes that the provisions of this
subdivision rohibiting
occur in the composition v
p discrimination because of familial status do not apply to the
,,dwelling unit
status, status with regard
owners or occupants in th,
s
(2 }. For.3 real estate broker, real estate salcsperson,' or employee, or agent thereof,
located, and to represent,
(a) to refuse to sell; rent; or lease or to offer for sale, rental, or )ease any real prop-
s
r
undesirable consequences
located, including b
erty to any person or group of persons or to negotiate . ental' or lease of
�^
r
in criminal or antisocial b
any real property to any person or group of persons bec D color, creed, reli-
i,,,,
lic facilities.
Pion_ national nrivin cer marital ciatr,c ctah,c ,,.:�i �o ._,,.,___ 7:__, c,
_ _ _ , _
07/28/96 14:20 $16124901580 $OLSTAD AND LRSN zoo_5
1196 }
1197 DEPARTMEM OF HUMAN RIGHTS 363.03
m, acquisition 1'X. Gz
for inspection, sale,'rental, or lease when in fact it is so available, or othcrw'ise deny 'or
i Temporary or
withhold any real property or any facilities of real property to or from any person or !
group of persons because of race, color, creed, religion, national origin, sex, marital sta- 4:
r
1e hardship on
tus, status with regard to public assistance, disability, sexual orientation, or familial sta-
clude: z
tus; or
to number of z 5..
(b) to discriminate against any person because of race, color,-creed, religion, i
national origin, sex, marital status, status with regard to public assistance, disability,
tre of the work
sexual orientation, or familial status in the terms, conditions or privileges of the sale,
t would occur,:
rental or lease of real property or in the furnishing of facilities or services in connection i
therewith; or
(c) to print, circulate, or post or cause to be printed, circulated, or posted any
to of business; -
advertisement or sign, or use any form of application for the purchase, rental, or tease
of any real property or make any record or inquiry in•connection with the prospective
cpeasive alter-
purchase, rental or lease of any real property, which expresses directly or indirectly, any
•ledgeable dis-
limitation, specification or discrimination aslo, race, color, creed, religion, national ort-
gin, sex, marital status, status with regard to public assistance, disability, sexual orienta-
job applicant
tion, or familial status or any intent to make any such limitation, specification, or
r or applicant.
discrimination except that nothing in this clause shall be construed to prohibit the
tds or medical
advertisement of a dwelling unit as available to adults -only if the pe'rson.placing the
concerning an
advertisement reasonably believes that the provisions of this subdivision prohibiting
it information
d iscrimination because of familial status do not apply to the dwelling unit.
(3) For a person, bank, banking organization, mortgage company, insurance com-
e
pany; or other financial institution or lender to whom application is made for financial
rothcrperson
assistance for the purchase, lease, acquisition, construction, rehabilitation, repair or
maintenance of any real property or any agent or employee thereof
any of these:
(a) to discriminate against any person or group of persons because of race, color,
tm any person _
gion, national
creed, religion, national origin, scx, marital status, status with regard to public assis-
ty, sexual ori-
tance, disability, sexual orientation, or familial status of the person or group of persons
or of the prospective occupants or tenants of the real property in the granting, withhold -
ing, extending, modifying or renewing, or in the rates,*terms, conditions, or privileges
of race, color,
of the financial assistance or in the extension of services in connection therewith; or
public assis-
(b) to use any form of application for the financial assistance or make any record
tions or privi-
or inquiry in connection with applications for the financial assistance which expresses,
of facilities or
be construed
directly or indirectly, any limitation, specification, or discrimination as to race, color;
creed, religion, national origin, sex, marital status, status with regard to public assis-
ety of minors
tance, disability, sexual orientation, or familial status or any intent to make any such
in connection
limitation, specification, or discrimination; or
(c) to discriminate against any person or group of persons who desire to purchase,
post or cause
lease, acquire, construct, rehabilitate, repair, or maintain real property in a specific
form of appy-
urban or rural area or any part thereof solely because of the social, economic, or envi-
)rd or inquiry
ronmental conditions of the area in the granting, withholding, extending, modifying,
•operty which
or renewing, or in the rates, terms, conditions, or privileges of the financial assistance
iination as W
or in the extension of services in connection therewith.
regard to pub- y >'`
to make any
(4) For any real estate broker or real estate salesperson, for the purpose of inducing
:t
is clause shall
areal property transaction from which the person, the person's firm, or any of its mcm-
to s-
to adults -only
hers may benefit financially, to represent that a change has occurred or will or may
t this =°
occur in the composition with respect to race, creed, color, national origin, sex, marital
t apply to the -
=
status, status with regard to public assistance.'sexual orientation, or disability of the
owners or occupants in the block, neighborhood, or area in which the real property is
thereof-.
"
located, and to represent, directo.- or indirectly, that this change will or may result in
agent
undesirable consequences in the block, neighborhood, or area in which the real prop -
tny real prop-
erty is located, including but not limited to the lowering of property values, an increase
il, or lease of
ti
in criminal or antisocial behavior, or a decline in the quality of schools or other pub-
,r, creed, rell- j
,Tic facilities.
altce, disabil
`
(5) For a person to deny full and equal access to real property provided for in this
not availab �e
section to a person who is totally or partially blind, deaf, or has a physical or sensory
'-
11 E
07/28/96 14:21 $`16124901580 HOLSTAD AND LRSN
363.03 DEPARTMENT OF KUMAN RIGHTS
disability and who uses a service animal, if the service animal can be properly identified ;
;
program which trains service animals to aid persons whoa
are totally or partially blind or deaf or have physical or sensory disabilities. The P
Person
r
Z006
1199
(2) for a place of pubi
to the known physical, stn
ing whether an aceommod:
W the frequency and
served by the aecommoda
(ii) the size of the buv
size, annual gross revenue
(iii) the extent to whit
daiion;
(iv) the type of opera
(v) the nature and at
making the accommodati,
accommodation; and
. (vi) the extent to whit
(1) a efusa] tion.
r to ptsmrl, at the expense of the disabled person, reasonable modifica-
tions of existing premises occupied or to be occupied by the disabled person if modifi-
cations may be necessary to afford the disabled person full enjoyment of the premises; ..
a landlord may, where it is reasonable to do so, condition permission for a modification
on the renter agreeing to restore the interior of the premises to the condition that
existed before the modification, excluding reasonable wear and tear,
(2) a refusal to make reasonable accommodations in rules, policies, practices, or
services, when accommodations may be necessary to afford a disabled person equal
opportunity to use and enjoy a dwelling; or '
(3) in connection with the design and construction of covered multifamily dwell-
ings for first occupancy after March 13, 1991, a failure to design and construct those .
dwellings in a manner that:
(i) the public use and common use portions are readily accessible to and usable
by a disabled person;
(ii) all the doors designed to allow passage into and within all premises are suffi-
ciently wide to allow passage by disabled persons in wheelchairs; and
(iii) all premises contain the following features of adaptive design: an accessible
route into and through the dwelling; light switches, electrical outlets, thermostats, and E
other environmental controls in accessible locations; reinforcements in bathroom walls
to allow later installation of grab bars; and usable kitchens and bathrooms so that an
individual in a wheelchair can maneuver about the space.
(b) As used in this subdivision, the term "covered multifamily dwellings" means:
(1)''a building consisting of four or more units if the building has one or more cle-
valors;
(2) ground floor units in other buildings consisting of four or more units.
(c) This subdivision does not invalidate or limit any law of the state or political
subdivision of the state, or other jurisdiction in which this subdivision applies, that
requires dwellings to be designed and constructed in a manner that affords disabled per-
sons greater access than is required by this subdivision.
(d) This subdivision does not require that a dwelling be made available to an indi-
vidual whose tenancy would constitute a direct threat to the health or safety of other 1 _4
individuals or whose tenancy would result in substantial physical damage to the prop-
erty of others.
-- - Subd, 3. Public accommodations. (a) It is an unfair discriminatory practice:
(1) to deny any person the full and equal enjoyment of the goods, services, facili-
ties,'privileges, advantages, and accommodations of a place of public accommodation
because of race; color, creed, religion, disability, national origin, marital status, sexual
orientation; or sex, or for a taxicab company to discriminate in the access to, full utiliza-
tion of, or benefit from service because of a person's' disability; or •: Y'
U y
t
11F
State or local building
building codes arc not vic
building code procedures.
(b) This paragraph li:
of disability. for purpose
refers to the clients or cuss
The contractual, licensing,
(1) It is discriminator
(i) subject ar. individ
individual or class, direct
to a denial of the opportur
the goods, services, facilit
(ii) of ford an individt
individual or class, direct
with the opportunity to pa
ileges, advantages, or ace
individuals; and
(iii) provide an indiv:
individual or class, direct
with goods, services, facili
ferent or separate from th
sary to provide the indiv
privileges, advantages, or
as those provided to oche
(2) Goods, services,
be afforded to an individu
io the needs of the indivi
(3) Notwithstanding
provided in accordance v
denied the opportunity to
or different.
(4) An individual or
arrangements, use standa
(1) that have the effc(
(ii) that perpetuate
administrative control..
(c) This paragraph li
of disability.. For purpose
11F
State or local building
building codes arc not vic
building code procedures.
(b) This paragraph li:
of disability. for purpose
refers to the clients or cuss
The contractual, licensing,
(1) It is discriminator
(i) subject ar. individ
individual or class, direct
to a denial of the opportur
the goods, services, facilit
(ii) of ford an individt
individual or class, direct
with the opportunity to pa
ileges, advantages, or ace
individuals; and
(iii) provide an indiv:
individual or class, direct
with goods, services, facili
ferent or separate from th
sary to provide the indiv
privileges, advantages, or
as those provided to oche
(2) Goods, services,
be afforded to an individu
io the needs of the indivi
(3) Notwithstanding
provided in accordance v
denied the opportunity to
or different.
(4) An individual or
arrangements, use standa
(1) that have the effc(
(ii) that perpetuate
administrative control..
(c) This paragraph li
of disability.. For purpose
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: September 6, 1996
TO: William Burns, Executive Director of HRA TA,
FROM: Barbara Dacy, Community Development Director
SUBJECT: Potential Joint Meeting at October HRA Meeting
At the October. 10, 1996 HRA meeting; we would like to invite the City Council to
attend the meeting to discuss with the HRA the City's "vision" for its redevelopment
priorities. After further discussion about the costs of a rehabilitation program for
severely deteriorated apartment complexes, we thought it prudent to discuss how this
priority compares with other redevelopment projects (such as Hyde Park, Northeast
Quadrant of University and Mississippi Street, etc.).
It is proposed that the meeting begin at 6:30 p.m. We will arrange dinner. Please
review your calendars and -let us know if the proposed time is acceptable.
It is proposed that the discussion with the City Council would occur first, and then
any routine HRA business items would be completed (a small agenda is anticipated).
BD /dw
M -96 -419
12