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HRA 06/13/1996 - 29787� � � CITY OB BRIDLEY HOIISIN(�i AND REDEVELOPMLNT AIITHORITY MEETINC,� JUNE 13, 1996 CALL TO ORDER: Vice-Chairperson Virginia Schnabel called the June 13, 1996 meeting to order at 7:45 p.m. ROLL CALLs Members Present: Members Absent: Virginia Schnabel, John Meyer, Duane Prairie, Jim McFarland Larry Commers Others Present: Barbara Dacy, Community Development Director William Burns, Executive Director Grant Fernelius, Housing Coordinator Jim Casserly, Financial Consultant Craig Ellestad, HRA Accountant Dave Jellison, MEPC American Properties, Inc. Leslie Jowett, MEPC American Properties, Inc. Mark Williamson, Ed Farr Architects APPROVAL OF MAY 9. 1996 HOIISING AND REDEVELOPMENT AIITHORITY MINTTTPS : MOTION by Mr. Meyer, seconded by Mr. Prairie, to approye the May 9, 1996 Housing and Redevelopment Authority minutes as written. IIPON A VOICE VOTE, ALL VOTING AYE, VICE CHAIRPERSON BCHNAHEL DECLARED THE MOTION CARRIED IINANIMOIISLY. CONSENT AGENDA: 1. 2. 3. ADDENDUM TO SALE AND DEVELOPMENT AGREEMENT. WHITNEY HOMES INC.: 5720 POLK STREET N.E. APPROVAL OF HRA BY-LAWS AND ESTABLISHING CHAIRPERSON AND VICE CHAIRPERSON REVENUE AND EXPENSES Mr. Ellestad submitted additional expenditures for authorization in a memo date June 13, 1996 to be included in the consent agenda. MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve the Consent Agenda as presented with the additional expenditures as presented in the June 13, 1996 memo. l / � � � $OIISINa AND REDEVELOPMENT AIITHORITY MTa., JIINE 13, 1996 PAa$ 2 IIPON A VOICL VOTE, ALL VOTINa AYE, VICE-CBAIRPER80N SCHNABEL DECLARED THE MOTION CARRYED IINANIMOIIBLY. ACTION ITEMS: 4. APPROVAL OF LAKE POINTE MASTER PLAN Ms. Dacy stated that the Master Plan is recommended for HRA approval subject to the twelve stipulations recommended by the Planning Commission. She stated that the proposed plan is consistent with the City's redevelopment objectives. If approved by the HRA, the item would be considered by the City Council on June 24, 1996. Ms. Schnabel asked if the time frame for development was 8 to 12 years or 8 to 10 years. Ms. Dacy said that 12 years was the longest time frame anticipated but 8 to 10 has been identified by the developer. Mr. Jellison said MEPC wants the property to be developed as fast as possible and certainly within 10 years. � Mr. Mark Williamson from Ed Farr Architects presented comments verbatim from a letter from Ed Farr dated March 29, 1996 regarding the architecture, site layout, and landscaping (copy of the letter on file in the Community Development Department). Mr. Prairie asked if the buildings would be connected by a skyway. Mr. Williamson said yes they would at the second level. Mr. Prairie asked about the phasing of buildings 1 through 4 on the site plan. Mr. Jellison said that building 1 on the west side of the site will be developed first, however depending on the tenant needs, they may need to develop other buildings like 3 and 4 first. The market will dictate generally what gets built first. He said that MEPC intends to start on the west but may need to adjust based on tenant response. Ms. Schnabel asked if a person could walk from one building to another without going outside. Mr. Williamson said yes. � Mr. Prairie asked about parking capacity. � � '�'� HOIISING AND REDEVELOPMENT AIITHORITY MT(3., JIINE 13. 1996 PAGE 3 Mr. Jellison said the numbers of parking spaces is sized based on the building size. Another level of ramps could be added. Ms. Schnabel asked about vehicle access to the ramps. Mr. Jellison said most of the access will be via Bridgewater Drive. Mr. Jellison introduced Leslie Jowett to talk about the upcoming marketing event. Ms. Jowett said that a broker event is planned for July 18, 1996 on the site. After hearing about other developments in the metro area being named as "Lake Pointe" and after hearing feedback from brokers in the focus group, we decided to rename to property as "Fridley Executive Center". The name identifies the site in Fridley and still portrays a corporate image. About 350 invitations will be sent to real estate brokers in an attempt to have about 150. The theme for the event will be the "Fridley Masters" after completing the Master Plan and coinciding with the golf theme. Ms. Schnabel asked if the name came out of the focus groups. Ms. Jowett said the feedback from the focus group in general was that the site was still associated with the previous developer. The marketing people came up with the actual name. Mr. Prairie said the name Lake Pointe wasn't particularly attractive but questioned whether "Executive Center would be appealing. Ms. Schnabel reiterated that "Lake Pointe" had a greater up scale ring to the development and that "executive aenter" is flat. Mr. Jellison said that he agreed the new name may not be the best, but from a marketing perspective it helps locate the site in Fridley and is not confused with the industrial park in Plymouth or the condominium development in Minneapolis. The name will not affect the development of the site since tenant needs are going to drive the decision. Mr. Casserly asked if the Centennial Lake project will compete with Lake Pointe. Mr. Jellison said he didn't think that would be the case because the competition is different in the 494 area than here in the north. Mr. Meyer asked about the role of the brokers at the party. Ms. Jowett said the brokers are meeting with users every day. They can get the project exposed. Many companies outsoure their HOIIBINa AND REDEVELOPMENT AOTHORITY MTG., JUNE 13, 1996 PAGE 4 � real estate services to brokers and it is important to get the information to them. MOTION by Nir. McFarland, seconded by Mr. Prairie, to approve the Master Plan subject to the 12 stipulations recommended by the Planning Commission and as represented in the staff report on pages 4P through 4CC. IIPON A VOICB VOTE, ALL VOTING AYE, VICE-CHAIRPER80N 8Cffi�TABEL DECLARED THE MOTION CARRIED IINANIMOIISLY. Ms. Dacy stated that she wanted the HRA to review the proposal by Merrill Busch for preparation of a 4 page color brochure regarding the City and its amenities. Mr. Prairie asked if 1,000 brochures are enough and what the life of the brochure is. Ms. Dacy said staff could obtain a quote for additional brochures if requested. Mr. Jellison said if the City could get 5 years from the brochure that would be good. ,� Ms. Schnabel asked if the brochure is about development or is this more community oriented. Ms. Dacy said more community oriented. Ms. Schnabel asked about the inserts. Ms. Dacy said the inserts would be tailored to the audience but would provide the hard facts about Fridley like favorable tax rates, crime prevention programs etc. Mr. Meyer asked why not just focus on the project. Ms. Dacy said that a project brochure has been completed and the purpose of this brochure is to help sell the community. Mr. Jellison stated that not many people know what Fridley has to offer. This would be an opportunity to sell the community. Mr. Meyer stated that the brochure should not be diluted until the point where it is useless. Keep in mind who the brochure is intended for. Ms. Jowett said the inserts could do that and speak directly to the intended audience. � � � � HOIISINa AND REDEVELOPMENT AIIT80RITY MTa.. JIINE 13. 1996 PAaS 5 MOTION by Mr. Prairie, seconded by Mr. McFarland, to approve the proposal from Merrill Busch for a four page color brochure at a cost not to exceed $10,940. IIPON A VOICE VOTE, ALL VOTINa AYE� VICE-CBAIRPERBON BCBNASEL DECLARED THE MOTION CARRIED IINANIMOIIBLY. 5. APPROVAL OF RESOLUTION AUTHORIZING ACQUISITION OF 380 57TH PLACE NE AND RELATED DOCUMENTS Ms. Dacy said this item is to approve the documents needed to accomplish the acquisition of the 4 plex for transitional housing services. The HRA had previously approved a lease agreement on July 17, 1995 regarding this item. The documents include a resolution authorizing the acquisition and a lease agreement with ACCAP to operate the transitional housing service which has been modified to meet NgiFA requirements. She stated that a third document will be needed to indemnify the HRA from all costs for the financing on the project. She said she anticipates this agreement will be on the August agenda. Ms. Schnabel asked about the possibility of the County HRA levy. Ms. Dacy stated that the County HRA has not proposed to pass a levy in the City, but they have done so in those cities which do not have an EDA or an HRA. MOTION by Mr. McFarland, seconded by Mr. Prairie, to approve the resolution as presented. IIPON A VOICE VOTE� ALL VOTING AYE� VICE-CBAIRPERBON BCHNABEL DECLARED THE MOTION CARRIED IINANIMOIIBLY. OT ON by Mr. Meyer, seconded by Mr. McFarland, to approve the lease agreement with the Anoka County Community Action Program. IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPER801J BCHNABEI� DECLARED THE MOTION CARRIED IINANIMOIIBLY. 6. TIF ASSISTANCE FOR WALLBOARD INC. Ms. Dacy stated that Wallboard Inc. has purchased a lot in the Great Northern Industrial Park and is proposing to construct a 30,000 square foot building. She stated that Wallboard supplies building materials to contractors, drywall contractors, and to the general public. She said that the company is relocating from its current location in Minneapolis. She stated that the project costs are approximately $1,100,000 of which $850,000 is for building and land. $250,000 is for two boom trucks. � �"1 HOIIBINdi AND REDLVELOPMENT AIITHORITY MTC�.. JIINE 13. 1996 PAQB 6 Ms. Dacy stated that Ms. Patty Paraschek, the owner, wanted her to convey to the HRA that they also intend to manufacture drivet wall systems. Also, Ms. Paraschek feels that her business creates a lot of jobs because it is labor intensive. Ms. Dacy stated that in the past, the HRA has assisted primarily manufacturing companies and not distribution or supply companies. Although this seems to be a good project, Ms. Dacy stated that the funding this request may set a precedent for other types of distribution companies requesting assistance. Mr. Meyer asked about the objection against an organization of this type. Ms. Dacy stated that in the past the HRA has prioritized manufacturing projects as opposed to distribution firms. Mr. McFarland state that this company does employ many people and purchases supplies at wholesale and delivers to the job site. He stated that the amount of labor should be a factor to differentiate this proposal as opposed to a typical distribution warehouse. He stated he did not feel this use was like a Murphy Warehouse. Ms. Schnabel asked about the use of the HRA funds to purchase the boom trucks. Should the HRA be financing equipment? Mr. Prairie asked if this was going to be a loan? Ms. Dacy stated yes, a TIF district would not be proposed. Mr. Meyer reiterated his question about why we should not promote this type of business. Manufacturing business could be as much a nuisance. Creating jobs should be a priority. Ms. Schnabel stated that the HRA may want to support this project but she was unclear as to how much. Mr. Prairie suggested $50,000. Ms. Dacy suggested that she is hearing support to assist the project. In order to do that, a motion should be made authorizing staff to initiate the process to add the parcel in the redevelopment project area so that a loan can be negotiated. MOTION by Mr. Meyer, seconded by Mr. Prairie, to direct staff to initiate the process to add the parcel proposed to be occupied by Wallboard Inc. into the HRA's redevelopment project area, and to direct staff to negotiate an appropriate loan amount. HOIISING AND REDEVELOPMENT AOTHORITY MT�3.. JIINE 13. 1996 PAGE 7 �, IIPON A VOICL VOTE� MR. PRAIRIE, MR. MEYEIt� AND MB. 8C8NAHEL VOTED AYE; MR. MCFARLAND ABBTAINED. VICE-CHAIRPERSON BCHNABEL DECLARED THE MOTION CARRIED. 7. ESTABLISHMENT OF A HOUSING REVOLVING LOAN PROGRAM Ms. Dacy handed out a summary outline of the request to initiate a housing rehabilitation revolving loan program supported in part by a HRA levy. The City would loan the HRA $1.5 million for initiation of a revolving loan pool. The loan payments and the levy would repay the loan; in the meantime, a significant amount of money could be leveraged. Mr. Prairie asked if this was the first levy in Fridley. Ms. Dacy stated yes. Mr. Burns stated that housing development is expensive. ldeed to generate a supply of funds for future housing projects and programs. Mr. Prairie asked how many cities are charging a levy? Ms. Dacy stated that there are a number of inner ring suburbs such as Columbia Heights and South St. Paul. She could investigate that further. Mr. Burns stated that the recent citizen survey indicated support for a levy; about 55� indicated they would pay additional taxes. Mr. Meyer asked about who is actually levying the tax. He said there is an increasing resentment toward levying taxes by those who are not elected. He also asked about the purposed of the program, is it to keep the HRA sound or is it to serve a public purpose such as improving properties. Mr. Casserly state that the proposal is really like what the Minnesota Housing Finance Agency does. The purpose is to improve the housing stock and to provide a means to encourage citizens to do that. The HRA will eventually run out of money as the TIF districts expire. Because redevelopment activities are expensive, the HRA needs to find resources to fund housing programs. By encouraging investment now, the cost of redevelopment will be less in the future. The proposed levy is a small part of the program. The revolving loan program is based on the payment of the loans back to the HRA. Ms. Dacy stated that the recent housing condition study identified several hundred units which need at least 2 items of ^ repair. HOIISINa AND REDEVELOPMENT AIITHORITY MT�.. JIINE 13. 1996 PAa$ 8 �, Mr. Prairie asked at what point do we end the program. Mr. Casserly stated that the levy can be decertified once the loan to the City is paid in fifteen years. Mr. McFarland stated that the TIF from the industrial developments will eventually expire and a source of funds will be needed. He stated he thought the program was aggressive and he is in favor of it. Ms. Schnabel stated that the HRA is running out of resources and we need to be creative to generate money. Mr. Burns stated that we have conquered the learning curve on the housing programs and have created an awareness of our programs which didn't previously exist. Mr. Meyer stated what's the ultimate objective - public money for everyone? Ms. Schnabel stated that it's a loan which needs to be paid back so that others can use it. /'`� Ms. Dacy stated that the loans would be similar to current rehab programs which encourage remodeling activities which maintain and improve values like room additions or kitchen upgrades. Mr. Meyer questioned whether the use of funds for kitchen upgrades is worthwhile. The City should assist code improvements. The new buyers of the homes could pay for the other types of upgrades. Mr. Fernelius stated that current loan recipients have an average income of $43,260. Some home buyers may not be able to afford the additional improvements. He stated that current loan recipients may not have been able to receive financing from a bank and are able to receive assistance from the HRA and therefore improve their home. Mr. Prairie stated that because it raises taxes we should be careful. Mr. Burns suggested that this item be discussed at the July meeting when the Chairperson could also participate in the discussion. 8. MODIFICATION TO FRIDLEY PLAZA OFFICE BUILDING Ms. Dacy stated that this item will be on the July agenda for � action. She is hopeful that all of the issues can be resolved. 80IISING AND REDEVELOPMENT AIITHORITY MTQ.. JIINE 13. 1996 PAGE 8 � JIILY AGENDA Ms. Schnabel suggested that the July agenda start early since there seemed to be a lot of issues to be discussed. It was agreed that the meeting would start at 6:00 p.m., staff would provide dinner, and the HRA would work through dinner prior to the start of the meeting at 7:30. ADJOIIRNMENTs OM TION by Mr. McFarland, seconded by Mr. Prairie, to adjourn the meeting. IIPON A VOICE VOTE, ALI� VOTIN� AYE, VICE-CHAIRPEltBON BCHNABEL DECLARED THE MOTION CARRIED AND THE MEETINC3 ADJOIIRNED AT 1Ot45 P.M. ly Submitted, Barbara Dacy Acting Recording /"�, � 8 I G N— I N 8 H E E T �' HOIIBING AND REDEVELOpMENT AIITHORITY MEETING� June 13 , 1996 Name Address/Business � v( �F�c� n, �