HRA 02/08/1996 - 29784CITY O�' BSIDLEY
HOIIBING� & REDEVELOPMBNT AIIT80RITY MELTINm
FEBRIIARY 8, 1996
CALL TO ORDER:
Chairperson Commers called the February 8, 1996, Housing and
Redevelopment Authority meeting to order at 7:30 p.m.
ROLL CALL:
Members Present:
Members Absent:
Larry Commers, Virginia Schnabel, Jim
McFarland, John Meyer
Duane Prairie
Others Present: wiiaiam Burns, Executive Director
Barbara Dacy, Community DBVelopment Director
Jim Casserly, Financial Consultant
Grant Fernelius, Housing Coordinator
Craig Ellestad, Accountant
Joe Paulzine, 681 Glencoe
B. Paulzine, 10472 - 6th Street
,APPROVAL OF JANUARY 11 1996 HOUSING AND REDEVELOPMENT AUTHORITY
MINUTES:
OM TION by Ms. Schnabel, seconded by Mr. McFarland, to approve the
January 11, 1996, Housing and Redevelopment Authority minutes as
written.
IIPON A 90ICE VOTE� 1�iLL VOTINa AYE, CSAIRPER80N COMMERB DECLARED
THE MOTION CARRIED IINANIMOIIBLY.
CONBENT A(�ENDA:
l.
2.
3.
REVENUE AND EXPENSES
CONSIDER LEGAL SERVICES CONTRACT WITH FREDERICR W. RNAAK
CONSIDER APPROVAL OF TEMPORARY CONSTRUCTION EASEMENT ON LOT
4. BLOCK 1, SCHERER ADDITION
OM TION by Mr. Meyer, seconded by Ms. schnabel, to approve the
Consent Agenda.
IIPON A VOICE VOTL � AT�L VOTIN�3 AYI: s
THE MOTION CARRIED IINAIITIMOIIBLY.
^ ACTION ITEMB:
COMMERB DECLARED
�i0II8IN(� & AEDEVELOPMENT AIITHORITY MTt3.. BEHRIIARY 8, 1996 PAQiE 2
4. CONDUCT PUBLIC HEARING REGARDING SALE OF 5981 - 3RD STREET.
623 LAFAYETTE STREET, AND 683 GLENCOE STREET
OM TION by Ma. Schnabel, seconded by Mr. McFarland, to waive the
reading of the public hearing notice and to open the public
hearing.
IIPON A VOICE VOTE, ALL VOTINm AYB, CHAIRPERBON CO1�ER8 DECLABLD
TH1: MOTION CARRIBD AHD THE PIIBLSC BEAR=Na OPEN AT 7a40 P.M.
Mr. Fernelius stated three properties are being considered. The
first is 5981 - 3rd Street N.E. which is located in Hyde Park
south of 61st and University near the "slip offp ramp. This lot
is one of two lots obtained from the City which was previously
acquired at the Custom Mechanical site. When selling properties
last fall, two tie bids were received. The.HRA at its November
meeting rejected both bids and established a December deadline
for new bids. Two offers were received from the same bidders -
Tams, Inc. with a bid of $5,100 and Whitney Homes with a bid of
$5,050. Mr. Tam will be building a house on the lot next door to
the south. Staff has requested he use a different floor plan so
we c10 not have two identical homes sicie by side. l�ir. Tam has
indicated he has the abil3ty to meet all of the development
!'"'� requirements. If approved, we would execute a development with
Mr. Tam.
Mr. Fernelius stated the second property is located at 683
Glencoe. The HRA has owned this property for about 18 months.
On the property was a small house and garage which were torn
dowr►. The lot has remained vacant. The HRA has maintained that
property. The neighbor next door, Mr. Paulzine, has expressed
interest in buying the property and submitted an offer of $3,000
for the lot. His mother has agreed to help financially. The
requirement would be that he combine the two parcels into one tax
parcel.
Mr. Fernelius stated the third property is at 623 Lafayette
Street. Mr. Tam had originally planned to develop this property
but then decided not to. Staff contacted the second bidder,
Whitney Homes, who agreed to develop the property. The
development will likely occur in late spring or early sunnaer.
The June 30 deadline may have to be pushed back because of
activities that need to take place on this property, such as the
sewer and water.
Mr. Fernelius stated staff recommends the i�2A approve the
resolution authorizing the sale of these properties.
The Commissioners had no questions of staff. Mr. Commers asked
^ for comments from the public.
� HOIIBIN� � REDEVELOPMENT AIITHORITY MTt�.. �'BBRIIARY 8. 1996 PAaE 3
Mr. Paulzine stated he is interested in the property at 683
Glencoe Street. He wants to make his lot a legal size lot. His
current lot is small.
Mr. Commers stated he understood that Mr. Paulzine was prepared,
with the help of his mother, to purchase the property for $3,000.
He asked M.r. Paulzine the size of his lot as it now exists.
Mr. Paulzine stated his lot is now approximately 62 feet. By
purchasing this lot, it will add another 50 feet.
Mr. Commers stated this would then make a nice s3zed lot. He
asked who has maintained the property.
Mr. Fernelius stated the HRA has maintained the property. The
HRA purchased the property from the previous owner and cleared
the existing structures.
ATo further comments were made by the public.
OM TION by Ms. Schnabel, seconded by Mr. Meyer, to close the
public hearing.
�'`� IIPON A VOICB VOTE, AI+L VOTINa AYE, CHAIRPER80N COMMERB DECLARED
THE MOTION CARAIED AND TH8 PIIBLIC HEARIN� CLOBTD AT 8s4S P.M.
MOTION by Mr. McFarland, seconcled by Ms. Schnabel, to adopt a
Resolution Authorizing the Sale of Real Property at 5981 - 3rd
Street N.E.; Resolution Authorizing the Sale of Real Property at
683 Glencoe Street N.E.; and Resolution Authorizing the Sale of
Real Property at 623 Lafayette Street AT.E.
IIPON A VOICB VOTB, ALL VOTINa AYF, CHAIRPERBON CO1�ER8 DECLBRED
THL MOTION CARRIED Q1�II�iNIMOIIBLY.
5. CONSIDER RESOLUTION TO AUTHORI2E EXECUTION OF DEVELOPMENT
CONTRACT WITH ROTTLUND HOMES. INC„
Mr. Commers asked why staff wished to authorize the execution of
this contract when there were still so many open items.
Ms. Dacy stated, since the material was prepared for the agenda
packet, she and Mr. Casserly have talked with Mr. Stutz from
Rottlund on several occasions, and they are prepared to state
they have an agreement with Rottlund on the major business terms
of the development contract. Rottlund has agreed to the land
sale payment. They have also agreed to some of the changes
discussed regarding the insurance requirements of the City
� Council pertaining to the prevailing wage issue. Those items
have been reviewed with Mr. Stutz, and he has agreed to those.
Itema that still need to be resolved include the schedulinq of
,� HOIIBINa & REDSVELOPMENT AIIT80RITY MT�i.. FEB1tIIARY 8. 1996 PA�E 4
the closing. They are askinq for additional documentation of the
environmental testing at the Fast Lube site. Mr. Casserly is
prepared to go through the contract in detail. Staff is askinq
the HRA to pass the resolution to authorize execution of the
development contact, but staff would not have the Chairperson and
Executive Director sign the contract until all the schedules have
been adopted, until the City Council adopts the plans, and until
they can revise some of the details in the agreement.
Mr. Commers asked what controls the HRA has over the construction
itself.
Mr. Casserly stated the City has its normal process where it
issues a building permit with plans. We have tremendous control
becauae we do not release control of the property if they do not
meet criteria by issuing a Certificate of Completion.
Mr. Commers asked where they were on the architectural controls
and the materials controls.
Ms. Dacy stated the City Council has completed the public
hearing. These items are now being prepared by Rottlund. If
approved tonight, they will be presented to the City Council on
!� February 26. The City Council requested the HRA approve the
development contract prior to their approval of the zoning and
platting. Staff would make sure the Council approves all of
those items. Once that is accomplished, they become the
attachments to the development agreement.
Mr. Commers stated he thought the HRA had something to say about
the architecture.
Ms. Dacy stated that was true. This is not to pre-empt that.
Because of the revision of the site plan, what the HI2A saw of the
three-story units has essentially remained the same. The
architecture of the two-story units has essentially remained the
same. The floor plan for the one-story cottages is now a little
smaller. The City Council is in the process of finalizing the
plans. She provided a copy of the blueprints for review.
Ms. Schnabel stated she thought a consultant would be adopting
standards. What happened to that person and their ideas?
Ms. Dacy stated they had a consultant evaluate the first set of
plans. Most of the design criteria were met. She did not have
them review future plans. The architect is developinq a floor
plan for the two story with a master bedroom on the main floor
and the one-story and two-story elevations. Mr. Burns has
� requested an interior product� list to be submitted.
Mr. Meyer reviewed the plans. He could not determine by the
� �OQBINa i R�DEVELOPMENT AIITBGRITY MTG.. FEBRIIA1tY 8, 189b PAaB 5
floor plans the quality of the units. The big thing is the
interior specifications and the exterior finishes.
Mr. Commers asked if that would be taken to the City Council.
Ms. Dacy stated yes. The City Council has asked the HRA to act
on the development contract. Staff ia asking the HRA to approve
the resolution. Staff would present the final plans to the City
Council so they could act on it. At the March meetinq, staff
would come back to the HRA with final plans. If the HI2A is
satisfied, the chairperson and executive director could then sign
the plaris .
Mr. Commers stated he would like the HRA members to be invited to
the Council meeting where the product list is presented. He
asked Mr. Meyer to review that list.
Ms. Schnabel asked if there were any units currently built or
similar models they could look at.
Ms. Dacy thouqht the village homes and the eight-unit townhomes
were a variation of similar products.
�, Mr. Commers asked Ms. Dacy to provide members with a listing of
Rottlund's most similar projects.
Mr. Burns stated they have a big project in Inver Grove Heighta
off Route 3. He thought these would provide a good idea of the
quality of the interiors.
Ms. Dacy stated she would check and let members know.
Mr. Meyer stated, if adding amenities, this will affect to the
cost. The City Council should know our ob�ections before signing
the final papers.
Mr. Commers asked Nis. Dacy to notify members of the Council
meeting so that members can attend if available.
Ms. Dacy stated, if all goes well, the first meeting if February
26. The next meeting if March 4.
Mr. Burns stated, when Rottlund submits their list of items,
perhaps Mr. Meyer could participate with staff and the building
inspector in reviewinq that list.
Ms. Dacy stated she hoped to receive the list on Monday. If she
receives the list on that day, she can forward a copy to Mr.
� Meyer.
Mr. Meyer stated it would be helpful to have the list ahead of
� SOIIBINa i�EDEVSLOPMENT AIITHORITY MTa.. FEBRIIARY 8. 1986 PAmE 6
time to provide time to review it before the Council meetinge
Mr. Meyer asked if the prevailing �age rate issue had been
resolved.
Mr. Commers stated the City Council voted 3-2 to exempt housing
from the prevailing wage rate issue.
OTION by Mr. 1KcFarland, seconded by Ms. Schnabel, to approve a
Resolution Authorizing Execution and Delivery of a Contract for
Private Redevelopment By and Hetween the Housing and
R�development Authority In and For the City of Fridley and the
Rottlund Company, Inc., with the understanding that the
Chairperson and the Executive Director will not sign the
agreement until the plans and schedules are reviewed and the
details furnished.
IIPON A VOICL VOTB, ALL VOTINa AYE, CHAIRPER80N COI�II►3ER8 DECLARFD
T8E MOTION CARRIED ONANIMOIIBLY. �
Mr. Casserly stated there is an environmental issue that is
nagging that may take three to four weeks to resolve. It has to
do with who will hold title to the site that was the former gas
�'`� station. There are contaminants identified at the site.
Rottlund wants to own but they do not want to take title until
the PCA siqns off on the site.
Ms. Dacy stated the PCA had indicated they agreed with the plan
to proceed w3th remedial investigation and our recommendation to
do more remedial testing. If the testing results indicate a low
amount of contaminants, the PCA would then issue a letter of
closure and not require addition remediation. The tanks have
been removed and they have applied for petrol fund reimbursement
for the studies that have been done.
Mr. Casserly stated this is an issue on which we will have to
sign off. The issue is one that Rottlund will not accept title
unless they are comfortable that the portions they are taking are
free of contamination. On the portion of land on which they are
building, no pollution has been discovered. We will give them
everything we have. There is nothing more we can do.
Mr. Commers asked if the final contract would be conti�gent upon
Rottlund accepting title to all the property.
Mr. Casserly stated it would probably be a two-step process. In
90 days, we will close on the property that Rottlund will build
on. We will hold the park property until such time it is
approved by the PCA.
�
6. CONSIDER APPROVAL OF 1996 BUDGET
� �BING i RED�LOPMENT AIIT80RITY MTa.. FEBRIIARY 8. 1996 PAQI$ 7
OT ON by Mr. Meyer, seconded by Ms. Schnabel, to approve the
1996 budqet.
IIPON A VOICS VOTE, ALL VOTING AYE, CBAIRPERSON COI�ERB DECI�ARED
THE 1�YOTION CARRIBD DNAI�TIMOIIBLY.
ACTION aTEMBa
7. UPDATE OId REMODELING FAIR
Mr. Fernelius stated staff are continuing their plans for the
Home Remodeling Fair on Saturday, April 20. He is pleased to
announce that Home Depot has made a verbal commitment to be a
sponsor and provide a substantial comm�itment. Staff are also
talking with some of the other retailers in town so they may also
see some additional sponsorship from them. He thought this would
be a nice time of the year and that they would have a good
turnout.
Mr. Commers asked how this was being publicized.
Mr. Fernelius stated the event would be publicized in the City
ldewsletter, the Fridley ]Focus, utility bills, etc. Staff will
�"1 make people aware of the fair.
8. LAKE POINTE UPDATE
Ms. Dacy stated she had no additional information from what was
included in the agenda packet. Ms. Dacy distributed copies of an
article entitled, "Fridley prepares to develop Lake Pointe" which
appeared in the February 5, 1996, isaue of the �iinnesota Real
Estate Journal.
Mr. Burns stated he had gotten an appraisal back and submitted
that to MEPC. MEPC is now in the process of contacting Mr.
Torgeson regarding a hotel facility. He thought he would have
communication back shortly.
9. FRANR'S USED CAR SITE UPDATE
Mr. Hurns stated the relocation consultant met with him and the
residential property owners. He thought they had a cordial
meeting. They are now in the process of suggesting comparable
buildings for relocation and starting to negotiate relocation
costs.
OTHER BDBINEBB:
10. ADDITIONAL EXPENSES
,�
Mr. Ellestad provided copies of additional expenses needing
HOIIBINa � REDEVBLOPMENT AIITHORITY MTG.. F$BRUARY 8. 1996 PAa$ 8
�
approval.
OM TION by Ms. Schnabel, seconded by Mr. Meyer, to approve the
additional expenses as outlined in Mr. Ellestad's memo of
February 8, 1996.
IIPO�1 A VOICS VOTB, ALL VOTINO AYE, CSAIRPER80N COMMERB DECLA�D
TSB MOTION CARRII3D IINANIMOIIBLY.
.
OM TION by Ms. Schnabel, seconded by Mr. MeFarland, to adjourn the
meeting.
IIPON A VOICB VOTTs, ALL VOTINQ AYE, CHAIRPERBON COMMERB DECLARED
THL MOTION CARRIED AND THE BEBRIIARY 8� 1996� HOIIBING AND
RBDSVI�LOPMENT AIITHORITY 1dEETI�iG ADJOIIRNED AT 8 a 40 B.I�.
Respectfully submitted,
F 1
d; J. ,� �
� '"�, � r
�, Lavonn Cooper
Recording Secretary
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8 I G N- I N 8$ E E T
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HOIISING AND REDEVEI,OPMENT AIITHORITY MEETINd, February 8, 1996
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