HRA 12/12/1996 - 6271HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, DECEMBER 12, 1996
7:30 P.M.
PUBLIC COPY
(Please return to Community Development Dept.)
HRA RESOLUTION NO. 22 - 1996
RESOLUTION AUTHORIZING AN INCREASE IN
COMPENSATION FOR FRIDLEY HOUSING AND
REDEVELOPMENT AUTHORITY EMPLOYEES FOR THE
1997 CALENDAR YEAR
WHEREAS, it is the intention of the Fridley Housing and
Redevelopment Authority (HRA) to provide fair and equitable
compensation to Employees within budgetary constraints; and
WHEREAS, the Fridley HRA intends to comply with the Minnesota
Local Government Pay Equity Act; and
WHEREAS, Staff of the City of Fridley have reviewed the HRA's
financial position as well as economic indicators and
compensation adjustments by comparable employers; and
WHEREAS, an adjustment of employee salaries and benefits is
warranted.
NOW, THEREFORE, BE IT RESOLVED by the Fridley Housing and
Redevelopment Authority that the following adjustments be
authorized for employees of the Fridley HRA, with the exception
of employees who are members of a bargaining unit, effective
January 1, 1997:
1. A general increase of 3.0 percent in employee salaries.
2. Mileage reimbursement at the rate of $.31 per mile.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY THIS 12TH DAY OF DECEMBER, 1996.
LAWRENCE R. COMMERS - CHAIRMAN
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, DECEMBER 12, 1996 7:30 P.M.
AGENDA
LOCATION: Council Chambers (upper level), Fridley Municipal Center
CALL TO ORDER
ROLL CALL
APPROVAL OF MINUTES: November 12, 1996
CONSENT AGENDA:
1997 Fridley Executive Center /Lake Pointe .................... 1 - 1 C
Maintenance Contract
Resolution Authorizing an Increase in ........................ 1.5 - 1.5A
Compensation for Fridley Housing and
Redevelopment Authority Employees
for the 1997 Calendar Year
Revenue and Expenses ........ ...........................2 -2D
ACTION ITEMS:
Consider Approval of School District TIF ....................... 3 - 3136
Returns
INFORMATION ITEMS:
Fridley Executive Center Update . ........................... 4 - 4F
1996 Housing Program Review ............................. 5 - 5A
OTHER BUSINESS:
ADJOURNMENT
CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
NOVEMBER 12, 1996
CALL TO ORDER:
Vice - Chairperson Virginia Schnabel called the November 12, 1996
meeting to order at 7:05 p.m.
ROLL CALL:
Members Present: Virginia Schnabel, John Meyer, Jim McFarland
Members Absent: Larry Commers, and Duane Prairie
Others Present: Barbara Dacy, Community Development Director
William Burns, Executive Director
Grant Fernelius, Housing Coordinator
Jim Casserly, Financial Consultant
Craig Ellestad, HRA Accountant
APPROVAL OF OCTOBER 10, 1996 HOUSING AND REDEVELOPMENT AUTHORITY
MINUTES:
MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the
October 10, 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. CONSIDER APPROVAL OF CONTRACT WITH SEH REGARDING PRELIMINARY
DESIGN OF TH 65 /WEST MOORE LAKE DRIVE /CENTRAL AVENUE
INTERSECTION
2. REVENUE AND EXPENSES
3. APPROVE 1997 MEETING DATES
Mr. Ellestad submitted additional expenditures for authorization in
a memo dated November 12, 1996 to be included in the consent
agenda.
MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the
Consent Agenda as presented with the additional expenditures as
presented in the November 12, 1996 memo.
HOUSING & REDEVELOPMENT AUTHORITY MEETING NOVEMBER 12, 1996 PAGE 2
UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
ADJOURNMENT:
MOTION by Mr. McFarland, seconded by Mr. Meyer, to adjourn the
November 12, 1996 Housing and Redevelopment Authority meeting.
UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 7:15 P.M.
The HRA then joined the City Council for a work session on
red Pme issues.
sPActfg1ly Sisritted,
Barbara Dacy
Acting Recording S c ary
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: December 4, 1996
Bums, Executive Director of the HRA�
TO: William W. Bu
FROM: Barbara Dacy, Community Development Director
SUBJECT: Fridley Executive Center /Lake Pointe Maintenance Contract
Innovative Irrigation has been the HRXs contractor for site maintenance for the past three
years. The contract price, approximately $22,000, has remained the same since the 1994
budget. A similar request is proposed for 1997.
Staff recommends the HRA authorize staff to execute a maintenance agreement with
Innovative Irrigation for $22,363.94 for 1997.
The contractor understands that a portion of site may be sold in the future and the contract
may have to be adjusted accordingly.
M -96 -553
1
City of Fridley
TO: John G. Flora, Public Works Director PW96 -286
Barbara Dacy, Community Development Director
C
FROM: Jon Thompson, Estimator & Construction Inspector
DATE: November 22, 1996
SUBJECT: 1997 Lake Pointe Maintenance Project No. 300
Innovative Irrigation, the contractor who completed the Lake Pointe maintenance project
in 1996, has asked the City of Fridley to consider an extension of the project contract
through the 1997 season. Innovative Irrigation is willing to complete the 1997 project for
the 1996 bid amount of $22,363.94.
A developer has taken an option on the property and Innovative Irrigation has agreed to
take a deduction based on the percentage of acreage and time not serviced if any portion
of the site is under construction and unavailable for maintenance.
Please notify me if this request is satisfactory and I will prepare the contract for execution.
JT:cz
1A
1997 CONTRACT
LAKE POINTE DEVELOPMENT MAINTENANCE PROJECT NO. 300
This Agreement made and entered into this 12th day of December. 1996, by and between CITY OF
FRIDLEY BRA hereinafter referred to as the CITY (Party of the First Part) and INNOVATIVE
IRRIGATION hereinafter referred to as the CONTRACTOR (Party of the Second Part).
WITNES SETH:
That the CONTRACTOR, in consideration of the convenant and the agreement of the CITY hereinafter set
forth, and for the sum and price of $20,999.00 plus $1,364.94 sales tax for a total amount of $22,363.94
hereby agrees that,
WHEREAS, the CITY has heretofore asked for proposals for the furnishing of materials, labor, and
equipment and the use of the CONTRACTOR'S equipment and plant, for the purpose of LAKE POINTE
DEVELOPMENT MAINTENANCE PROJECT NO. 300 and appurtenances thereto, as shown on the
plans and as set forth in the Specifications now on file with the City, and that,
WHEREAS, the CONTRACTOR has submitted a Proposal in response thereto, which has been accepted
by the CITY, in which the CONTRACTOR agrees to and shall furnish all necessary materials, labor, use of
tools, equipment, and plant and everything necessary to perform the work designated and set forth in the
Contract, including all CONTRACTOR'S superintendence, and to furnish everything necessary for the
completion of the Project and to put the entire system into complete working condition.
FURTHER: The CONTRACTOR agrees, under penalty of a Corporate Surety Bond in the amount of 100%
of the total Contract, to complete the work under the contract in accordance with the Contract Documents.
The Contract Documents consist of the following component parts, all of which are as full a part of this
Contract as though therein stated verbatim, or if not attached, as if hereto attached:
The Minnesota Department of Highways "Standard Specifications for Highway Construction"
dated June 9, 1988.
2. The City of Fridley Specifications included with this Contract.
3. The 'Proposal', "Bid Schedule" and 'Bond" of the Contractor.
4. This "Contract" between the City and the Contractor.
5. Any Modifications or changes in the terms of the Contract or Bid or additions to or
deductions from the amount or character of the work which is to be performed or which may
be agreed to in writing by the Contractor and the City.
r_ i
LAKE POINTE DEVELOPMENT MAINTENANCE CONTRACT
PROJECT NO. 300
Page Two
The CONTRACTOR agrees to pay all persons furnishing labor and material in and about the performance
of the CONTRACT; and the CONTRACTOR will, within ten (10) working days after the acceptance of the
CONTRACTOR'S Bid execute this Contract and furnish a payment and performance bond to be approved
by the City in a sum equal to 100% of the full amount of the Bid. The CONTRACTOR further agrees to take
all precautions to protect the public against injury and to save the CITY harmless from all damages and claims
of the CONTRACTOR or the CONTRACTOR'S Agents or Employees while engaged in the performance
of this Contract and will indemnify the CITY furnished as aforesaid and against all loss by reason of the
failure of the CONTRACTOR in any respect to fully perform all obligations of this CONTRACT.
The CITY agrees to pay the CONTRACTOR for the performance of this Contract, and the CONTRACTOR
agrees to accept as full compensation thereof the prices set forth within the attached Proposal.
The CONTRACTOR and the CITY agree that all of the terms of this Contract shall be binding upon
themselves, their heirs, administrators, executors, legal and personal representatives, successors, and assigns.
Innovative Irrigation has agreed to take a deduction based on the percentage of acreage and time not serviced
if any portion of the site is under construction and unavailable for maintenance.
IN WITNESS WHEREOF, the Parties hereto have set their hands and seals this 12th day of December 1996.
HN G. FLORA, Public Works Director
TNES S
WITNESS
WITNESS
PARTY OF THE FIRST PART
CITY OF FRIDLEY HRA
by
WILLIAM W. BURNS, Executive Director - HRA
LAWRENCE R. COMMERS, Chairman —HRA
PARTY OF THE SECOND PART -�--
CONTRACTOR
by
NAME (TITLE)
1C
MEMORANDUM
OF Municipal Center
® 6431 University Avenue Northeast
Fridley, Minnesota 55432
CIIYOF (612) 572 -3507
FRIDLI✓Y FAX: (612) 571 -1287
Willlain C. Hunt
Assisrant to the City Manager
Memo to: Barbara Dacy, Director of Community Development
From: William C. Hunt, Assistant to the City Manager 0111t
Subject: Resolution Authorizing Pay Increase for HRA Employees
Date: December 5, 1996
Since the HRA is a distinct entity it will be necessary for its board to authorize salary
increases for employees. I have adapted the resolution we used for the Fridley City
Council to apply to the needs of the HRA. In order to provide salary increases effective
January 1, 1997 it will be necessary for the BRA to take action on this matter at its
meeting of December 12, 1996. I recommend that you present this matter for action at
the above mentioned meeting. If I can be of any further assistance let me know.
WCWjb
1.5
RESOLUTION NO. HRA
-1996
A RESOLUTION AUTHORIZING AN INCREASE IN
COMPENSATION FOR FRIDLEY HOUSING AND
REDEVELOPMENT AUTHORITY EMPLOYEES FOR
THE 1997 CALENDAR YEAR
WHEREAS, it is the intention of the Fridley Housing and Redevelopment Authority
(HRA) to provide fair and equitable compensation to Employees within budgetary
constraints; and
WHEREAS, the Fridley HRA intends to comply with the Minnesota Local Government
Pay Equity Act; and
WHEREAS, Staff of the City of Fridley have reviewed the HRA's financial position as
well as economic indicators and compensation adjustments by comparable employers;
and
WHEREAS, an adjustment of employee salaries and benefits is warranted;
NOW, THEREFORE, BE IT RESOLVED by the Fridley Housing and Redevelopment
Authority that the following adjustments be authorized for employees of the Fridley
HRA, with the exception of employees who are members of a bargaining unit, effective
January 1, 1997:
A general increase of 3.0 percent in employee salaries.
2. Mileage reimbursement at the rate of $0.31 per mile.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF FRIDLEY THIS DAY OF
1996.
LAWRENCE R. COMMERS - CHAIRMAN
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
1.5A
TO: FRIDLEY H.R.A
FROM: CITY OF FRIDLEY
RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES
NOVEMBER 1996
Account #'s for
HRA's Use
ADMINISTRATIVE BILLING:
ADMINISTRATIVE PERSONAL SERVICES
ADMINISTRATIVE OVERHEAD
COMPUTER OVERHEAD
(For Micro & Mini computers)
TOTAL ADMINISTRATIVE BILLING: 460 - 0000 - 430 -4107
OPERATING EXPENSES:
USPS - POSTAGE 262 - 0000 - 430 -4332
USPS - POSTAGE 460 - 0000 - 430 -4332
US WEST -PHONE SERVICE 460 - 0000 -430 -4332
BENEFITS EXPENSES:
CITY OF FRIDLEY - HEALTH INS
CITY OF FRIDLEY - DENTAL INS
CITY OF FRIDLEY - LIFE INS
TOTAL OPERATING EXPENSES:
262- 0000 - 219 -1001
262- 0000 -219 -1100
262 -0000- 219 -1200
TOTAL BENEFITS EXPENSES:
Account #'s for CR
City's Use Code
19, 800.75 101 -0000- 341 -1200 HI
275.85 101 -0000 -336 -3000 HA
200.25 101 -0000 -336 -3000 HA
20.276.85
18.33 236 -0000- 336 -3000 HA
12.26 236- 0000 -336 -3000 HA
14.39 236 -0000- 336 -3000
44.98
330.75 236 - 0000 - 219 -1001 11
44.15 236 -0000- 219 -1100 12
0.00 236 - 0000 - 219 -1200 13
374.90
TOTAL EXPENDITURES - NOVEMBER 1996
File: \EXDATAIHRAITIF\96BILL.)ds Details
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TO: WILLIAM W. BURNS, EXECUTIVE DIRECTOR 4rfA
FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR
CRAIG A. ELLESTAD, ACCOUNTANT
SUBJECT: 1997 SCHOOL REFERENDUM LEVY RETURN AGREEMENTS
DATE: DECEMBER 2,1996
Attached are the 1997 School District Referendum Levy Return Agreements to
be placed on the HRA's agenda for Thursday, December 12th.
These annual agreements need to be approved by both the HRA Commission
& the City Council. If approved by the Commission, you will then need to put
this item on the City agenda for approval.
The estimated total levy return for 1997 before delinquents is $315,826.
This is $4,887 more than the estimated amount for 1995.
There is an overall market value increase which increases the amount returned.
In 1996, TIF District #8 terminated which impacts School District # 14.
The table below breaks the referendum levy return down by school district:
School
Estimated
Estimated
Percent
District
1996
1997
Change
11
$16,416
$17,930
9.2%
13
$2,648
$3,878
46.4%
14
$232,531
$227,121
-2.3%
16
$59,345
$66,898
12.7%
Total: $310.940 $315.827 I&Y,
ATTACHMENTS
File: tEXDATAWRA%TIF'GCH97EST /Letter -HRA
I
AGREEMENT
This Agreement is dated as of January 2, 1997, is
by and between the City of Fridley, Minnesota, and Independent
School District No. 16, and provides as follows:
337158.2
1. Definitions. As used in this. Agreement, the
following terms have the following meanings, respectively:
"City" means the City of Fridley,
Minnesota.
"HRA" means the Housing and Redevelopment
Authority in and for the City of Fridley,
Minnesota.
"Project" means Redevelopment Project No-
1 established and operated by the HRA pursuant
to Minnesota Statutes, Sections 469.001
through 469.047.
"1985 Revenue Bonds" means the HRA's
$4,070,000 Tax Increment Revenue Bonds of
1985, dated May 1, 1985.
111990 G.O. Bonds" means the City's
$9,485,000 General Obligation Tax Increment
Refunding Bonds of 1990, dated March 1, 1990.
"1995 G.O. Bonds" means the City's
$4,090,000 General Obligation Temporary Tax
Increment Bonds, Series 1995A, dated.
November 1, 1995.
"Tax Increment Obligations" means the
1985 Revenue Bonds, the 1990 G.O. Bonds, the
1995 G.O. Bonds, and any other contractual
obligations of the HRA or the City which were
entered into prior to the date of this
Agreement and which commit the use of any tax
increments from the TIF Districts for
specified purposes, projects, or parties.
"Tax Increment Act" means Minnesota
Statutes, Sections 469.174 through 469.179.
"TIF Districts" means Tax Increment
Financing District Nos. 1 through 14 within
3A
337158.2
the Project. The attached Exhibit A contains
certification dates and other information on
the TIF Districts.
"School District" means Independent
School District No. 16, the Spring Lake Park
School District.
"Subdivision" means Minnesota Statutes
Section 469.177, Subdivision 10 (a copy of
which is attached hereto as Exhibit B).
2. Recitals
(a) In certain cases, the Subdivision
either requires or allows by agreement certain
tax increments attributable to school district
referendum tax levies to be paid to school
districts.
(b) TIF District Nos. 5, 7, 9, 10, 11,
and 14 are located entirely within the
boundaries of the School District, and a
portion of TIF District Nos. 3 and 12 is
located within the boundaries-of the School
District.
(c) None of the property within TIF
District Nos. 1, 2, 4, 6, 8 and 13 is located
within the boundaries of the School District.
(d) It is the purpose of this Agreement
to provide for payment of certain tax
increments to the School District pursuant to
and in accordance with the provision of the
Subdivision.
(e) Nothing in this
intended to violate the
agreements heretofore made
application of tax incremen'
Districts pursuant to the
Obligations.
Agreement is
covenants and
respecting the
:s from the TIF
Tax Increment
3. Representations of the City_
(a) The Tax Increment Obligations were
issued to finance various activities of the
HRA within the Project_
337158.2
(b) The 1985 Revenue Bonds are not
general obligations of the City or the HRA.
Tax increments from TIF District Nos. 1
through 5 are pledged to the payment of the
1985 Revenue Bonds, and there are no other
sources of funds pledged to - the payment
thereof. The final scheduled principal
maturity of the 1985 Revenue Bonds is
February 1, 1999.
(c) The 1990 G.O. Bonds are payable from
tax increments derived from TIF District Nos.
1, 2, 3, and 6,= --and the final scheduled
principal maturity of those Bonds is August 1,
2009.
(d) The 1995 G.O. Bonds are payable, to
the extent permitted by applicable law, from
tax increments derived from TIF District Nos.
1 through 13, and the final scheduled maturity
of those Bonds is November 1, 1998.
(e) Portions of the principal of the
1985 Revenue Bonds, the 1990 G.O. Bonds, and
the 1995 G.O. Bonds were outstanding on May 1,
1988, and /or are outstanding on the date of
this Agreement.
4. Representations of the School District.
(a) On October 8, 1981, the electorate
of the School District approved a 5.0 mill
continuous levy first effective for the 1981
payable 1982 property taxes. This levy is
hereinafter referred to as the 111981 Levy ".
(b) On February 27, 1986, the electorate
of the School District approved a 6.0 mill
continuous levy first effective for the 1986
payable 1987 property taxes. This levy is
hereinafter referred to as the 111986 Levy ".
(c) According to the Minnesota
Department of Education, for purposes of the
above- mentioned referendum levies the tax
capacity rate equivalents of 5 mills and 6
mills are .05226653 and .06271984,
respectively.
7k
3C
337158.2
5. Payment of Tax Increments to School District. The
City and the School District hereby agree that, except as
otherwise provided pursuant to paragraph 6 of this Agreement,
tax increments shall be paid to the School District by the HRA
as and to the extent received by the HRA, with respect to the
tax increments relating to the 1996 payable 1997 property
taxes, as follows:
(a) TIF District Nos. _g_ 10 11 12 and
14. Since TIF District Nos. 9, 10, 11, 12,
and 14 were requested for certification after
May 1, 1988, the Subdivision does not apply to
those Districts, and no tax increments
attributable to the 1981 Levy or the 1986 Levy
from those Districts are payable to the School
District.
(b) TIF District No 7. Since the 1981
Levy and the 1986 Levy were approved prior to
the date of-certification of TIF District No.
7, the Subdivision does not apply to those
Levies with respect to this District, and no
tax increments attributable to said Levies
from this District are payable to the School
District.
(c) TIF District No 5. Since the 1981
Levy was approved prior to the date of cert-
ification of TIF District No. 5, the Subdi-
vision does not apply.to the 1981 Levy, and no
tax increments attributable to said Levy from
this District are payable to the School
District. Pursuant to clause b(2) of the
Subdivision, the tax increment from TIF
District No. 5 which is attributable to the
1986 Levy shall be paid. to the School
District.
(d) TIF District No 3. Since the 1981
Levy was 'approved prior to the date of
certification of TIF District No. 3, the
Subdivision does not apply to the 1981 Levy,
and no tax increments attributable to said
Levy from this District are payable to the
School District. Pursuant to clause b(2) of
the Subdivision, the tax increment from TIF
District No. 3 which is attributable to the
1986 Levy shall be paid to the School
District.
A
6. Further Agreements. Nothing in this Agreement is
intended or shall be applied in such a manner as to violate
the obligations and covenants made by the City or the HRA in
connection with the Tax Increment Obligations, and to the
extent but only to the extent that the application of the
terms of this Agreement would give rise to a violation of said
obligations and covenants, including without limitation, the
default in the timely and full payment of the Tax Increment
Obligations, the applicable tax increments shall be applied
instead in the manner, but only to the extent necessary, to
avoid such default or other violation of said covenants or
obligations. Nothing in this Agreement shall restrict the
City or the HRA in the exercise of the powers which they may
have relating to the Project or the TIF Districts.
In addition, the City and the School District agree that
the provisions of paragraph 5 providing for payment of tax
increment to the School District shall be limited to and shall
apply only to such tax increment attributable to the 1996
payable 1997 real estate property taxes, and at the conclusion
of said period, the City and the School District agree to
review the circumstances and to attempt to negotiate in good
faith such further agreement or agreements as may be permitted
by law and which are acceptable to both the City and School
District with respect to discretionary payments of such
applicable tax increment to the School District.
IN WITNESS WHEREOF, the City and the School District have
caused this Agreement to be executed by their duly authorized
representatives.
CITY OF FRIDLEY, MINNESOTA
Mayor
City Manager
INDEPENDENT SCHOOL DISTRICT NO. 16
School Board Chair
Superintendent
337158.2 r-
3E
EXHIBIT A
Schedule of Tax Increment Financing Districts
Within Housing and Redevelopment
Project No. 1 of the Fridley HRA
337158.2
3F
Independent
TIF District
Name
Certification
School
Date
District No.
1
Center City
5/11/79
14
2
Moore Lake
7/31/81
13/14
3
North Area
5/19/82
11/16
4
Johnson Printing /
Skywood Mall
1/20/84
13/14
5
Paschke
3/15/84
16
6
Lake Pointe
12/24/85
13
7
Winfield
10/22/86
16
8
Shorewood
10/24/86
14
9
Onan /Old Central
9/7/89
16
10
Northco Phase III
4/10/90
16
11
Osborne Crossings
1/31/92
16
12
McGlynn Bakeries
3/5/92
14/16
13
Satellite Lane Apts.
6/20/95
14
14
Industrial Equities
5/30/96
16
337158.2
3F
Exhibit B
Subd_ 10. Pati meat to school for referendum levy. (a) The provisions of this subdivi-
sion apply to tax increment financing districts and projects for which certification was
requested before May 1. 1953, that are located in a school district in Lthich the voters
have approved neµ local tax rates or an increase in local tax rates after the tax incre-
ment financing district was certified-
(b)( 1) If there are no outstanding bonds on Mav 1. 1988, to tt hich increment from
the district is pledged, or if the referendum is approved after May 1, 1988, and there
are no bonds outstanding at the time the referendum is approved. that were issued
before May 1, 1985, the authority must annually pay to the school district an amount
of increment equal to the increment that is attributable to the increase in the local tax
rate under the referendum.
(2) If clause (1) does not 2pp1y, upon approval by majority rote of the governing
body of the municipality and the school board, the authority must pay to the school
district an amount of increment equal to the increment that is attributable to the
increase in the local tax rate under the referendum.
(c) The amounts of these increments may be expended and must be treated by the
school district in the same manner as provided for the revenues derived from the refer-
endum leN -\- approved by the voters. The provisions of this subdivision apply to projects
for vv-hich certification -as requested before, on, and after August 1, 1979_
3G
AGREEMENT
This Agreement is dated as of January 2, 1997, is
by and between the City of Fridley, Minnesota, and Independent
School District No. 14, and provides as follows:
337157.2
1. Definitions. As used in this; Agreement, the
following terms have the following meanings, respectively:
"City" means the City of Fridley,
Minnesota.
"HRA" means the Housing and Redevelopment
Authority in and for the City of Fridley,
Minnesota.
"Project" means Housing and Redevelopment
Project No.1 established and operated by the
HRA pursuant to Minnesota Statutes, Sections
469.001 through 469.047.
"1985 Revenue Bonds" means the HRA's
$4,070,000 Tax Increment Revenue Bonds of
1985, dated May 1, 1985.
"1990 G.O. Bonds" means the City's
$9,485,000 General Obligation Tax Increment
Refunding Bonds of 1990, dated March 1, 1990.
"1995 G.O. Bonds" means the City's
$4,090,000 General Obligation Temporary Tax
Increment Bonds, Series 1995A, dated
November 1, 1995.
"Tax Increment Obligations" means the
1985 Revenue Bonds, the 1990 G.O. Bonds, -the
1995 G.O. Bonds, and any other contractual
obligations of the.HRA or the City which were
entered into prior to the date of this
Agreement and which commit the use of any tax
increments from the TIF Districts for
specified purposes, projects, or parties.
"Tax Increment Act" means Minnesota
Statutes, Sections 469.174 through 469.179.
"TIF Districts" means Tax Increment
Financing District Nos. 1 through 14 within
3H
337157.2
the Project. The attached Exhibit A contains
certification dates and other information on
the TIF Districts.
"School District" means Independent
School District No. 14, the Fridley School
District.
"Subdivision" means Minnesota Statutes
Section 469.177,, Subdivision 10 (a copy of
which is attached hereto as Exhibit B).
2. Recitals.
(a) In certain cases, the Subdivision
either requires or allows by agreement certain
tax increments attributable to school district
referendum tax levies to be paid to school
districts.
(b) TIF District Nos. 1, 8 and 13 are
located entirely within the boundaries of the
School District, and a portion of TIF District
Nos. 2, 4, and 12 are located within the
boundaries of the School District.
(c) None of the property within TIF
District Nos. 3, 5, 6, 7, 9, 10, 11 and 14 is
located within the boundaries of the School
District.
(d) It is the purpose of this Agreement
to provide for payment of certain tax
increments to the School District pursuant to
and in accordance with the provision of the
Subdivision.
(e) Nothing in this Agreement is
intended to - violate the covenants and
agreements heretofore made respecting the
application of tax increments from the TIF
Districts pursuant to the Tax Increment
Obligations.
3. Representations of the City.
(a) The Tax Increment Obligations were
issued to finance various activities of the
HRA within the Project.
31'
337157.2
(b) The 1985 Revenue Bonds are not
general obligations of the City or the HRA.
Tax increments from TIF District Nos. 1
through 5 are pledged to the payment of the
1985 Revenue Bonds, and there are no other
sources of funds pledged to the payment
thereof. The final scheduled principal
maturity of the 1985 Revenue Bonds is
February 1, 1999.
(c) The 1990 G.O. Bonds are payable from
tax increments derived from TIF District Nos.
1, 2, 3, and 6, and the final scheduled
principal maturity of those Bonds is August 1,
2009.
(d) The 1995 G.O. Bonds are payable, to
the extent permitted by applicable law, from
tax increments derived from TIF District Nos.
1 through 13, and the final scheduled maturity
of those Bonds is November 1, 1998.
(e) Portions of the principal of the
1985 Revenue Bonds, the 1990 G.O. Bonds, and
the 1995 G.O. Bonds were outstanding on May 1,
1988, and /or are outstanding on the date of
this Agreement.
4. Representations of the School District.
(a) On September 23, 1986, the
electorate of the School District approved a
2.0 mill continuous levy first effective for
the 1986 payable 1987 property taxes. This
levy is hereinafter referred to as the 111986
Levy ll .
(b) On September 29, 1987, the elec-
torate of the School District approved (i) a
7.0 mill continuous levy first effective for
the 1987 payable 1988 property taxes and (ii)
a continuous additional 6.5 mill levy first
effective for the 1988 payable 1989 property
taxes. These levies are hereinafter
collectively referred to as the 111987 Levies "_
Z
3J
(c) According to the Minnesota
Department of Education, for purposes of the
above - mentioned referendum levies the tax
capacity rate equivalents of 2 mills and 13.5
mills are .02261395 and .15264411,
respectively.
(d) On November 3, 1992, the electorate
of the School District approved a levy
increase of $203.51 per actual pupil unit,
effective for the five years ending,with the
taxes payable in 1997, unless earlier reduced
or revoked; however, since the proceeds of
this levy are paid directly to the School
District by the applicable County taxing
authorities, it is not necessary or
appropriate to include said levy or its
proceeds under this Agreement.
5. Payment of Tax Increments to School District. The
City and the School District hereby agree that, except as
otherwise provided pursuant to paragraph 6 of this Agreement,
tax increments shall be paid to the School District by the HRA
as and to the extent received by the HRA, with respect to the
tax increments relating to the 1996 payable 1997 property
taxes, as follows:
(a) TIF District Nos. 12 and 13. Since
TIF District Nos. 12 and 13 were requested for
certification after_ May 1, 1988, the
Subdivision does not apply to those Districts,
and no tax increments from those Districts
attributable to the 1986 Levy or the 1987
Levies are payable to the School District.
(b) TIF District No. 8. Since the 1987
Levies were approved after the date of
certification of TIF District No. 8, and since
on May 1, 1988, there were no bonds
outstanding to which increment from TIF
District No. 8 was pledged, the tax increments
from TIF District No. 8 which are attributable
to the 1987 Levies are automatically payable
and shall be paid to the School District
pursuant to clause b(1) of the Subdivision.
Since the 1986 Levy was approved prior to the
date of certification of TIF District No. 8,
the Subdivision does not apply to that Levy
with respect to this District, and no tax
337157.2 4
3K
337157.2
increments attributable to said Levy from this
District are payable to the School District.
(c) TIF District No. 4. Pursuant to
clause b(2) of the Subdivision, the tax
increment from TIF District No. 4 which is
attributable to the 1986 Levy and the 1987
Levies shall be paid to the School District.
(d) TIF District No. 2. Pursuant to
clause b(2) of the Subdivision, the tax
increment from TIF District No. 2 which is
attributable to the 1986 Levy and the 1987
Levies shall be paid to the School District.
(e) TIF District No. 1. Pursuant to
clause b(2) of the Subdivision, the tax
increment from TIF District No. 1 which is
attributable to the 1986 Levy and the 1987
Levies shall be paid to the School District.
6. Further Agreements. Nothing in this Agreement is
intended or shall be applied in such a manner as to violate
the obligations and covenants made by the City or the HRA in
connection with the Tax Increment Obligations, and to the
extent but only to the extent that the application of the
terms of this Agreement would give rise to a violation of said
obligations and covenants, including without limitation, the
default in the timely and full payment of the Tax Increment
Obligations, the applicable tax increments shall be applied
instead in the manner, but only to the extent necessary, to
avoid such default or other violation of said covenants or
obligations. Nothing in this Agreement shall restrict the
City or the HRA in the exercise of the powers which they may
have relating to the Project or the TIF Districts.
In addition, the City and the School District agree that
except in each case described in paragraph 5 of this Agreement
where payment of tax increment to the School District is
mandatory pursuant to clause b(1) of the Subdivision, all
other provisions of said paragraph 5 providing for payment of
tax increment to the School District shall be limited to and
shall apply only to such tax increment attributable to the
1996 payable 1997 real estate property taxes, and at the
conclusion of said period, the City and the School District
agree to review the circumstances and to attempt to negotiate
in good faith such further agreement or agreements as may be
permitted by law and which are acceptable to both the City and
School District with respect to discretionary payments of such
applicable tax increment to the School District.
3L:
IN WITNESS WHEREOF, the City and the School District have
caused this Agreement to be executed by their duly authorized
representatives.
337157.2
A.
CITY OF FRIDLEY, MINNESOTA
Mayor
City Manager
INDEPENDENT SCHOOL DISTRICT NO. 14
School Board Chair
Superintendent
3M
EXHIBIT A
Schedule of Tax Increment Financing Districts
Within Housing and Redevelopment
Project No. 1 of the Fridley HRA
337957.2 7
3N
Independent
TIF District
Name
Certification
School
Date
District No.
1
Center City
5/11/79
14
2
Moore Lake
7/31/81
13/14
3
North Area
5/19/82
11/16
4
Johnson Printing/
Skywood Mall
1/20/84
13/14
5
Paschke
3/15/84
16
6
Lake Pointe
12/24/85
13
7
Winfield
10/22/86
16
8
Shorewood
10/24/86
14
9
Onan /Old Central
9/7/89
16
10
Northco.Phase III
4/10/90
16
11
Osborne Crossings
1/31/92
16
12
McGlynn Bakeries
3/5/92
14/16
13
Satellite Lane Apts.
6/20/95
14
14
Industrial Equities
5/30/96
16
337957.2 7
3N
Exhibit B
Subd. 10. Payment to school for referendum letiv. (a) The provisions of this subdivi-
sion apply to tax increment financing districts and projects for which certification was
requested before May 1, 1988, that are located in a school district in which the voters
have approved new local tax rates or an increase in local tax rates after the tax incre-
ment financing district was certified.
(b)(1) If there are no outstanding bonds on Nla\ I. 1988. to %�hich increment from
the district is pledged, or if the referendum is approved after May 1, 1988, and there
are no bonds outstanding at the time the referendum is approved, that were issued
before May 1, 1988, the authority must annually pay to the school district an amount
of increment equal to the increment that is attributable to the increase in the local tax
rate under the referendum_
(2) If clause(]) does not apply, upon approval by a majority rote ofthe governing
body of the municipality and the school board, the authority must pay to the school
district an amount of increment equal to the increment that is attributable to the
increase in the local tax rate under the referendum.
(c) The amounts of these increments may be expended and must be treated by the
school district in the same manner as provided for the revenues derived from the refer-
endum levy approved by the voters_ The provisions of this subdivision apply to projects
for wfilch certification was requested before, on, and after August 1, 1979_
30
AGREEMENT
This Agreement is dated as of January .2, 1997, is
by and between the City of Fridley, Minnesota, and Independent
School District No. 13, and provides as follows:
337153.2
1. Definitions. As used in this.. Agreement, the
following terms have the following meanings,- respectively:
"City" means the City of 'Fridley, Minnesota.
"HRA" means the Housing and Redevelopment
Authority in and for the City of Fridley,
Minnesota.
"_Project" means Redevelopment Project
No. 1 established and operated by the HRA
pursuant to Minnesota Statutes, Sections
469.001 through 469.047_
"1985 Revenue Bonds" means the HRA's
$4,070,000 Tax Increment Revenue Bonds of
1985, dated May 1, 1985-
"1990 G.O. Bonds" means the City's
$9,485,000 General Obligation Tax Increment
Refunding Bonds of 1990, dated March 1, 1990.
"1995 G.O. Bonds" means the City's
$4,090,000 General Obligation Temporary Tax
Increment Bonds, Series 1995A, dated
November 1, 1995.
"Tax Increment Obligations" means the
1985 Revenue Bonds, the 1990 G.O. Bonds, the
1995 G.O. Bonds, and any other contractual
obligations of the HRA or the City which were
entered into prior to the date of this
Agreement and which commit the use of any tax
increments from the TIF Districts for
specified purposes, projects, or parties.
"Tax Increment Act" means Minnesota
Statutes, Sections 469.174 through 469.179.
"TIF Districts" means Tax Increment
Financing District Nos. 1 through 14 within
337153.2
the Project. The attached Exhibit A contains
certification dates and other information on
the TIF Districts.
"School District" means Independent
School District No. 13, the Columbia Heights
School District.
"Subdivision" means Minnesota Statutes
Section 469.177,. Subdivision 10 (a copy of
which is attached hereto as Exhibit B).
2. Recitals.
(a) In certain cases, the Subdivision
either requires or allows by agreement certain
tax increments attributable to school district
referendum tax levies to be paid to school
districts.
(b) TIF District No. 6 is located
entirely within the boundaries of the School
District, and a portion of TIF District Nos. 2
and 4 are located within the boundaries of the
School District.
(c) None of the property within TIF
District Nos. 1, 3, 5, 7, 8, 9, 10, 11, 12, 13
and 14 is located within the boundaries of the
School District.
(d) It is the purpose of this Agreement
to provide for payment of certain tax
increments to the School District pursuant to
and in accordance with the provision of the
Subdivision.
(e) Nothing in this Agreement is
intended to violate the covenants and
agreements heretofore made respecting the
application of tax increments from the TIF
Districts pursuant to the Tax Increment
Obligations.
3. Representations of the City.
(a) The Tax Increment Obligations were
issued to finance various activities of the
HRA within the Project.
3Q
337153.2
(b) The 1985 Revenue Bonds are not
general obligations of the City or the HRA_
Tax increments from TIF District Nos. 1
through 5 are pledged to the payment of the
1985 Revenue Bonds, and there are no other
sources of funds pledged to the payment
thereof. The final scheduled principal
maturity of the 1985 Revenue Bonds is
February 1, 1999.
(c) The 1990 G.O. Bonds are payable from
tax increments derived from TIF District Nos.
1, 2, 3, and 6, and the final scheduled
principal maturity of those Bonds is August 1,
2009.
(d) The 1995 G.O. Bonds are payable, to
the extent permitted by applicable law, from
tax increments derived from TIF District Nos.
1 through 13, and the final scheduled maturity
of those Bonds is November 1, 1998-
(e) Portions of the principal of the
1985 Revenue Bonds, the 1990 G.O. Bonds, and
the 1995 G.O. Bonds were outstanding on May 1,
1988, and /or are outstanding on the date of
this Agreement.
4. Representations of the School District.
(a) On October 5', 1981, the electorate
of the School District approved a 5.0 mill
continuous levy first effective for the 1981
payable 1982 property taxes_ This levy is
hereinafter referred to as the 111981 Levy ".
(b) On September 23, 1986, the
electorate of the School District approved a
7.0 mill continuous levy first effective for
the 1986 payable 1987 property taxes. This
levy is hereinafter referred to as the 111986
Levy".
(c) According to the Minnesota Depart-
ment of Education, for purposes of the above -
mentioned referendum levies the tax capacity
rate equivalents of 5 mills and 7 mills are
.06162496 and .07875910, respectively.
337153.2
(d) On November 6, 1990, the electorate
of the School District approved a .08 tax
capacity rate levy authorized for 7 years and
first effective for the 1990 payable 1991
property taxes. This levy is hereinafter
referred to as the 111990 Levy ".
5. Payment of Tax Increments to School District. The
City and the School District hereby agree.. -that, except as
otherwise provided pursuant to paragraph 6 of this Agreement,
tax increments shall be paid to the School District by the HRA
as and to the extent received by the HRA, with respect to the
tax increments relating to the 1996 payable 1997 property
taxes, as follows:
(a) TIF District No. 6. Since the 1981
Levy was approved before the date of
certification of TIF District No. 6, the
Subdivision does not apply to that Levy with
respect to this District, and no tax
increments attributable to said Levy from this
District are payable to the School District.
Pursuant to clause b(2) of the Subdivision,
the tax increment from TIF District No. 6
which is attributable to the 1986 Levy and the
1990 Levy shall be paid to the School
District.
(b) TIF District No. 4. Since the 1981
Levy was approved- prior to the date of
certification of TIF District No. 4, the
Subdivision does not apply to that Levy with
respect to this District. Pursuant to clause
b(2) of the Subdivision, the tax increment
from TIF District No. 4 which is attributable
to the 1986 Levy and the 1990 Levy shall. be
paid to the School District.
(c) TIF District No. 2. Pursuant to
clause b(2) of the Subdivision, the tax
increment from TIF District No. 2 which is
attributable to the 1981 Levy, the 1986 Levy,
and the 1990 Levy shall be paid to the School
District.
3S
6. Further Agreements. Nothing in this Agreement is
intended or shall be applied in such a manner as to violate
the obligations and covenants made by the City or the HRA in
connection with the Tax Increment Obligations, and to the
extent but only to the extent that the application of the
terms of this Agreement would give rise to a violation of said
obligations and covenants, including without limitation, the
default in the timely and full payment of the Tax Increment
Obligations, the applicable tax increments shall be applied
instead in the manner, but only to the extent necessary, to
avoid such default or other violation of said covenants or
obligations. Nothing in this Agreement I shall restrict the
City or the HRA in the exercise of the powers which they may
have relating to the Project or the TIF Districts.
In addition, the City and the School District agree that
the provisions of paragraph 5 providing for payment of tax
increment to the School District shall be limited to and shall
apply only to such tax increment attributable to the 1996
payable 1997 real estate property taxes, and at the conclusion
of said period, the City and the School District agree to
review the circumstances and to attempt to negotiate in good
faith such further agreement or agreements as may be permitted
by law and which are acceptable to both the City and School
District with respect to discretionary payments of such
applicable tax increment to the School District.
IN WITNESS WHEREOF, the City and the School District have
caused this Agreement to be executed by their duly authorized
representatives.
337153.2
CITY OF FRIDLEY, MINNESOTA
Mayor
ty Manager
INDEPENDENT SCHOOL DISTRICT NO. 13
School Board Chair
Superintendent
3T
EXHIBIT A
Schedule of Tax Increment Financing Districts
Within Housing and Redevelopment
Project No. 1 of the Fridley HRA
Independent
337153.2
3U
Certification
School
TIF District
Name
Date _
District No.
1
Center City
5/11/79
14
2
Moore Lake
7/31/81
13/14
3
North Area
5/19/82
11/16
4
Johnson Printing/
Skywood Mall
1/20/84
13/14
5
Paschke
3/15/84
16
6
Lake Pointe
12/24/85
13
7
Winfield
10/22/86
16
8
Shorewood
10/24/86
14
9
Onan/Old Central
9/7/89
16
10
Northco Phase III
4/10/90
16
11
Osborne Crossings
1/31/92
16
12
McGlynn Bakeries
3/5/92
14/16
13
Satellite Lane Apts.
6/20/95
14
14
Industrial Equities
5/30/96
16
337153.2
3U
Exhibit B
Subd. 10. Payment to school for referendum (a) The provisions of this subdivi-
sion apply- to tax increment financing districts and projects for which certification was
requested before May 1. 198S, that are located in a school district in which the voters
have approved new local tax rates or an increase in local tax rates after the tax incre-
ment financing district was-certified-
(b)(1) If there are no outstanding bonds on May 1. 19SS, to a hick increment from
the district is pledged. or if the referendum is approved 2ftzr ,\12y ], 198S. and there
are no bonds outstanding at the time the referendum is 2pproVed, that were issued
before May 1, 1988, the authority must annually pay to the school district an amount
of increment equal to the increment that is attributable to the increase in the local tax
rate under the referendum.
(2) If clause (1) does not 2pply, upon approval by a majority vote of the governing
body of the municipality and the school board, the authority must pay to the school
district an amount of increment equal to the increment that is attributable to the
increase in the local tax rate under the referendum.
(c) The amounts of these increments may be expended and must be treated by the
school district in the same manner as provided for the revenues denwed from the refer-
endum ]e.y appro� ed by the � oters_ The provisions of this subdivision apply to projects
for µhich certification \,,2s requested before, on, and after august I, 1979.
3V
AGREEMENT
This Agreement is dated as of January 2, 1997, is
by and between the City of Fridley, Minnesota, and Independent
School District No. 11, and provides as follows:
1. Definitions. As used in this Agreement, the
following terms have the following meanings; respectively:
"City" means the City of `Fridley,
Minnesota.
"HRA" means the Housing and Redevelopment
Authority in and for the City of Fridley,
Minnesota.
"Project" means Redevelopment Project No.
1 established and operated by the HRA pursuant
to Minnesota Statutes, Sections 469.001
through 469.047.
111985 Revenue Bonds" means the HRA's
$4,070,000 Tax Increment Revenue Bonds of
1985, dated May 1, 1985-
111990 G.O. Bonds" means the City's
$9,485,000 General Obligation Tax Increment
Refunding Bonds of 1990, dated March 1, 1990.
"1995 G.O. Bonds" means the City's
$4,090,000 General Obligation Temporary Tax
Increment Bonds, Series 1995A, dated
November 1, 1995.
"Tax Increment Obligations" means the
1985 Revenue Bonds, the 1990 G.O. Bonds, the
1995 G.O. Bonds, and any other contractual
obligations of the HRA or the City which were
entered into prior to the date of this
Agreement and which commit the use of any tax
increments from the TIF Districts for
specified purposes, projects, or parties.
"Tax Increment Act" means Minnesota
Statutes, Sections 469.174 through 469.179.
"TIF Districts" means Tax Increment
Financing District Nos. 1 through 14 within
the Project. The attached Exhibit A contains
certification dates and other information on
the TIF Districts.
337145.2 3W
"School District" means Independent
School District No. 11, the Anoka School
District. -
"Subdivision" means Minnesota Statutes
Section 469.177, Subdivision 10 (a copy of
which is attached hereto as Exhibit B).
2. Recitals.
(a) In certain cases, the Subdivision
either requires or allows by agreement certain
tax increments attributable to school district
referendum tax levies to be paid to school
districts.
(b) A portion of TIF District No. 3 is
located within the boundaries of the School
District.
(c) None of the property within TIF
District Nos, 1, 2, 4, 5, 6, 7, 8, 9, 10, 11,
12, 13 and 14 is located within the boundaries
of the School District.
(d) It is the purpose of this Agreement
to provide for payment of certain tax
increments to the School District pursuant to
and in accordance with the provision of the
Subdivision.
(e) Nothing in this Agreement is
intended to violate the covenants and
agreements heretofore made respecting the
application of tax increments from the TIF
Districts pursuant to the Tax Increment
Obligations.
3. Representations of the City.
(a) The Tax Increment Obligations were
issued to finance various activities of the
HRA within the Project.
(b) The 1985 Revenue Bonds are not
general obligations of the City or the HR-A.
Tax increments from TIF District Nos. 1
through 5 are pledged to the payment of the
1985 Revenue - Bonds, and there are no other
sources of funds pledged to the payment
thereof. The final scheduled principal
maturity of the 1985 Revenue Bonds is
February 1, 1999.
337145.2 3X1
(c) The 1990 G.O. Bonds are payable from
tax increments derived from TIF District Nos.
1, 2, 3, and 6, and the final scheduled
principal maturity of those Bonds is August 1,
2009.
(d) The 1995 G.O. Bonds are payable, to
the extent permitted by applicable law, from
tax increments derived from TIF District Nos.
1 through 13, and the final scheduled maturity
of those Bonds is November 1, 1998.
(e) Portions of the principal of the
1985 Revenue Bonds, the 1990 G.O. Bonds, and
the 1995 G.O. Bonds were outstanding on May 1,
1988, and /or are outstanding on the date of
this Agreement.
4. Representations of the School District.
(a) On October 5, 1982, the electorate
of the School District approved a continuous
6.0 mill levy first effective for the 1982
payable 1983 property taxes. This levy is
hereinafter referred to as the 111982 Levy ".
(b) On October 6, 1987, the electorate
of the School District approved a 6.0 mill
continuous levy first effective for the 1987
payable 1988 property taxes. This levy is
hereinafter referred to as the 111987 Levy ".
(c) According to the Minnesota
Department of Education, for purposes of the
above - mentioned referendum levies the tax
capacity rate equivalent of 6 mills is
.06999697.
5. Payment of Tax Increments to School District. The
City and the School District hereby agree that, except as
otherwise provided pursuant to paragraph 6 of this Agreement,
tax increments shall be paid to the School District by the HRA
as and to the extent received by the HRA, with respect to the
tax increments relating to the 1996 payable 1997 property
taxes, as follows:
TIF District No. 3. Pursuant to clause
b(2) of the Subdivision, the tax increment
from TIF District No. 3 which is attributable
to the 1982 Levy and the 1987 Levy-shall be
paid to the School District.
337745.2 .3Y
6. Further Agreements. Nothing in this Agreement is
intended or shall be applied in such a manner as to violate
the obligations and covenants made by the City or the HRA in
connection with the Tax Increment Obligations, and to the
extent but only to the extent that the application of the
terms of this Agreement would give rise to a violation of said
obligations and covenants, including without limitation, the
default in the timely and full payment of the Tax Increment
Obligations, the applicable tax increments_ shall be applied
instead in the manner, but only to the extent necessary, to
avoid such default or other violation of said covenants or
obligations. Nothing in this Agreement shall restrict the
City or the HRA in the exercise of the powers which they may
have relating to the Project or the TIF Districts.
In addition, the City and the School District agree that
the provisions of paragraph 5 providing for payment of tax
increment to the School District shall be limited to and shall
apply only to such tax increment attributable to the 1996
payable 1997 real. estate property taxes, and at the conclusion
of said period, the City and the School District agree to
review the circumstances and to attempt to negotiate in good
faith such further agreement or agreements as may be permitted
by law and which are acceptable to both the City and School
District with respect to discretionary payments of such
applicable tax increment to the School District.
IN WITNESS WHEREOF, the City and the School District have
caused this Agreement to be executed by their duly authorized
representatives.
CITY OF FRIDLEY, MINNESOTA
Mayor
City Manager
INDEPENDENT SCHOOL DISTRICT NO. 11
School Board Chair
Superintendent
337145.2 1 3 `
EXHIBIT A
Schedule of Tax Increment Financing Districts
Within Housing and Redevelopment
Project No. 1 of the Fridley HRA
337145.2 3 e A
Independent
TIF District
Name
Certification
School
Date
District No.
1
Center City
5/11/79
14
2
Moore Lake
7/31/81
13/14
3
North Area
5/19/82
11/16
4
Johnson Printing/
Skywood Mall
1/20/84
13/14
5
Paschke
3/15/84
16
6
Lake Pointe
12/24/85
13
7
Winfield
10/22/86
16
8
Shorewood
10/24/86
14
9
Onan /Old Central
9/7/89
16
10
Northco Phase III
4/10/90
16
11
Osborne Crossings
1/31/92
16
12
McGlynn Bakeries
3/5/92
14/16
13
Satellite Lane Apts.
6/20/95
14
14
Industrial Equities
5/30/96
16
337145.2 3 e A
Exhibit B
Subd. 10. Payment to school for referendum levy. (a) The prop isions of this subdivi-
sion apply to tax increment financing districts and projects for %hich certification was
requested before ,MaY 1. 1935, that are located in a school district in which the voters
have approved new local tax rates or an increase in local tax rates after the tax incre-
ment financing district teas cenified.
(b)(1) 1f there are no outstanding bonds on Ma% 1. 19SS. to %k hich increment from
the district is pledged, or if the referendum is approved after Mpy 1, 19SS, and there
are no bonds outstanding at the time the referendum is approved, that were issued
before May 1, 1985, the authority must annually pay to the school district an amount
of increment equal to the increment that is attributable to the increase in the local tax
rate under the referendum_
(2) If clause (1) does not apply, upon approval by a majorit,,• vote of the governing
body of the municipality and the school board, the authority must pay to the school
district an amount of increment equal to the increment that is attributable to the
increase in the local tax rate under the referendum.
(c) The amounts of these increments may be expended and must be treated by the
school district in the same manner as provided for the revenues derived from the refer-
endum levy approved by the voters- The provisions of this subdivision apply to projects
for which certification 2s requested before, on, and after .August 1, 1979.
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: December 5, 1996
TO: William W. Bums, Executive Director of the HRA
FROM: Barbara Dacy, Community Development Department
SUBJECT: Fridlev Executive Center Update
Market Status
Merrill Busch reported that downtown office buildings have significantly increased in value
over the last year. The resulting tax implications on owners and tenants may cause some
tenants to look elsewhere. A number of tenants in downtown office buildings relocated
there in the early 1990s to take advantage of extremely low lease rates. Current leases are
probably nearing expiration and the increase in taxes may cause some companies to
reevaluate.
Merrill continues to recommend that the HRA promote the r tax advantages for companies
locating in Fridley as opposed to other sites in Hennepin and Ramsey County. The recent
analysis Jim Casserly completed for American Excelsior on tax impacts between the Fridley
and Brooklyn Park site was instrumental in attracting American Excelsior to Fridley.
Marketing Brochure
The marketing brochure is nearing completion. Merrill has had a tremendous amount of
difficulty obtaining "final approvals" on quotes from key individuals at Fridley companies,
but he hopes to have all of them this week. I asked Merrill to send a draft copy to me for
the HRA meeting.
MEPC
Several meetings have occurred with MEPC on a variety of prospects:
Builder's Association of the Twin Cities: BATC represents residential home builders
and remodelers in the metro area. BATC's current office is in Bloomington just south
of 1-494 near Nicollet Avenue. BATC sponsors monthly continuing education
seminars for its members, publishes and organizes the Parade of Homes event, and
lobbies the legislature on a variety of issues on behalf of its members.
U
Fridley Executive Center Update
December 5, 1996
Page 2
The lease at their current location expires in 1999; however, the BATC Board wants
to make a decision by the end of this year on a new location. They have outgrown
their current space and want a new location, preferably near a
hotel /conference /restaurant facility. The Board is evaluating a site in Roseville and
one of the commercial sites at the Fridley site.
Dave Jellison, Leslie Jowett, Ed Farr, and I toured their current facility in
Bloomington in November. Ed Farr developed three site plans; one two story plan,
and two one story plans. Each building has a 10,000 square foot footprint. BATC
wants a one story facility, and in the case of the two story plan, they would have to
lease the second story.
The proposed site is the commercial site nearest 1 -694 where the restaurant (9,845
square feet) was contemplated. There would be no loss of anticipated building
square footage and possibly additional square footage with the two story plan.
Originally, the site nearest West Moore Lake Drive was contemplated so that BATC
and a bank would be located in one 20,000 square foot facility. BATC, however, did
not want a second story location and preferred its own facility.
MEPC advised BATC that the two story plan would be preferred. The Board
responded that this would not be compatible with their plans, and they decided to
pursue the Roseville site.
2. Hotel Investors: Dave Jellison, Leslie Jowett, and I met with Mike Haney of Arman-
Grossman Properties. He has been hired to search for full service hotel sites in the
metro area for a group of investors from Florida. MEPC gave him information on the
hotel site and I provided information about the Master Plan, zoning requirements,
and development stipulations. Jellison also reports that he continues to make
contacts with other hotel and restaurant operators.
3. Office Users: Jellison continues to receive inquiries about large office users. One of
the major office users still considers Fridley one of its potential sites, but has not
confirmed its final decision. In addition, Jellison is finalizing a proposal to a 60,000
square foot user (a publishing company) for one -half of the building on the west part
of the site.
Intersection Update
Work has begun on the intersection analysis by SEH. Initial results are expected by the
end of December; an update will be provided at the January meeting.
In a related matter, Home Depot has agreed to fund the final design ($45,000) for
modification of the westbound off ramp from 1-594 at University Avenue. MnDOT has
agreed to move up construction funding ($280,000) so that construction will begin in the
Fridley Executive Center Update
December 5, 1996
Paae 3
Spring of 1997. The ramp will be changed so that there are two southbound and two
northbound turning lanes intersecting University Avenue. The merging lane into University
Avenue will be eliminated. Turning movements will be controlled by a signal. The 1997
construction schedule would eliminate traffic conflicts when the Highway 65 intersection is
under construction in 1998.
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TH 47 (L"Y0ZSlW AVENUE)
TH 47(Vniversify Avenue)/ 1-624 Area Troffic Study
FRIDLEY, MINNESOTA CONCEPTUAL IMPROVEMENT PLAN
ALTERNATIVE 3
Barton-Aschman Associates, In(,
1 1 1 Third Ave. S- Suite 350 Minneopolis, UN 5544
Persons Transportation Group
FAT!n
m
Figure 7
DATE: December 5, 1996
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Year -End Review of Housing Programs
Housing Rehabilitation
Year -to -date a total of 144 loans and grants have been made for a combined value of $1,759,944.
Of this number, 122 loans were made city -wide ($1,629,382) and 22 loans were made in Hyde
Park ($130,562). A breakdown of home improvement and rental rehabilitation loans is shown
below.
1
Funding was provided by the following agencies:
HRA Funds $1,553,842
Federal HOME and CDBG Funds $56,818
MHFA and DPS Funds $149,284
Total $1,759,944
5
Total
Loans
No. Value
122 $1,629,382
22 $130,562
144 $1,759,944
Home
Rental
Loans
Loans
No.
Value
No.
Value
City -Wide 116
$1,570,698
6
$ 58,684
Hyde Park 10
$53,448
12
$ 77,114
126
$1624,146
18
$135,798
1
Funding was provided by the following agencies:
HRA Funds $1,553,842
Federal HOME and CDBG Funds $56,818
MHFA and DPS Funds $149,284
Total $1,759,944
5
Total
Loans
No. Value
122 $1,629,382
22 $130,562
144 $1,759,944
Housing Program Memo
December 5, 1996
Page 2
The HRA budgeted $1,150,000 for the housing program, not including the scattered site program.
Due to the demand for the loan program, the HRA approved an additional $500,000 at their
August 8th meeting. Several loan applications are still in process, however it appears that the
total amount will not exceed $1,650,000.
Dave King from CEE will be at the HRA meeting on December 12th to provide additional
information on the types of improvements made and demographic data on the borrowers.
Home Remodeling Advisor
In February, Robert Van Nelson was hired as the Remodeling Advisor. Robert's duties include
meeting with homeowners to help them evaluate remodeling ideas, determine whether to do the
work themselves or hire a contractor, and provide referrals to other resources such as financing,
building permits and zoning information. So far this year, Robert has received a total of 390 calls
and completed 145 home visits. The feedback from homeowners has been extremely positive
and more than 40 families have been referred to the HRA financing programs. Robert will make a
slide presentation at the December 12th HRA meeting to show some of the projects.
Home Remodeling and Garden Fair
On April 12, 1996 the HRA held the first annual Fridley Home Remodeling and Garden Fair at the
Fridley High School. More than 60 vendors were on hand to display their products and services.
Attendance was estimated between 1,200 to 1,500 people. Plans are already underway for the
1997 fair which will be held on Saturday, April 5, 1997 at the Fridley High School from 10 :00 a.m.
to 3:00 p.m.
Scattered Site Acquisition Program
6 substandard homes were acquired this year under the scattered site program. One of the sites,
6431 Jackson St., was re -sold to a contractor and is currently being remodeled. The remaining
sites will be demolished in January and added to the program inventory. This spring we hope to
have another round of lot sales. In addition to the acquisition activity, 5 new homes were
constructed, 3 of which were built in the Hyde Park neighborhood. A total of 11 new homes have
been built since 1995.
GF/
M -96 -557
5A