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HRA 01/09/1997 - 6272HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, JANUARY 9, 1997 7:30 P.M. WILLIAM BURNS EXECUTIVE DIRECTOR OF HRA CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, JANUARY 9, 1997 7:30 P.M. AGENDA LOCATION: Council Chambers (upper level), Fridley Municipal Center CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: December 12, 1996 CONSENT AGENDA: Resolution Designating Official Depositories for ................. 1 the Fridley Housing & Redevelopment Authority Revenue and Expenses ............. n L. ,� .. r ....... _ ... 2 - 2A I V ACTION ITEMS: Consider a Resolution Determining that a Certain ............... 3 - 3D Parcel is Occupied by a Substandard Building And is to be Included in a Tax Increment Financing District; 218 - 57th Place y- �✓ U INFORMATION ITEMS: Lindstrom Metric Request for TIF Assistance. .......... 4 - 4B Proposal by Steve Linn to Rehabilitate Dick's ..v .... 5-513 Wheel and Tire, and Redevelop a Portion of 57th Avenue ti'= Fridley Executive Center Update ....... `;' 6 j3. Mississippi Street and 3`d Street Construction ................. 7 - 7C Update OTHER BUSINESS: ADJOURNMENT CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING DECEMBER 12, 1996 CALL TO ORDER: Chairperson Commers called the December 12, 1996, Housing and Redevelopment Authority meeting to order at 7 :30 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, John Meyer, Jim McFarland (8:00 p.m.) Members Absent: Duane Prairie Others Present: William Burns, Executive Director Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator Rick Pribyl, Finance Director Craig Ellestad, Accountant Jim Furgason, 6381 Squire Street Gordon Backlund, 5805 Arthur Street Robert Van Nelson, Remodeling Counselor Dave King, CEE Chris Huber, Spring Lake Park Public Schools APPROVAL OF NOVEMBER 12, 1996, HOUSING AND REDEVELOPMENT AUTHORITY MEETING: MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the November 12, 1996, Housing and Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA: 1. 1997 FRIDLEY EXECUTIVE CENTER /LAKE POINTE MAINTENANCE CONTRACT 2. RESOLUTION AUTHORIZING AN INCREASE IN COMPENSATION FOR FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY EMPLOYEES FOR THE 1997. CALENDAR YEAR 3. REVENUE AND EXPENSES Mr. Ellestad distributed copies of his memo dated December 12, 1996, listing additional revenues and expenses for approval. HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 12, 1996 PAGE 2 MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the Consent Agenda as presented with the additional expenditures as presented in the December 12, 1996, memo. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: 4. CONSIDER APPROVAL OF SCHOOL DISTRICT TIF RETURNS Mr. Ellestad stated this is an annual agreement and is payable for 1997 only. There are no additional referendum levies. TIF District #8 has been terminated. Otherwise, this is the same as last year. Ms. Dacy stated staff recommends approval as presented. Mr. Backlund, Chair of the Independent School District #14 School Board, stated, on behalf of the board, they appreciate the support in the past. It is meaningful to have the extra revenue. Times are not always as they have been in the past. They are going through the budget process and looking to have as much stability as possible in their funding. He would appreciate the continuation of the support. This support has been very helpful to the school district. Mr. Commers stated the estimated figures for 1997 are slightly less. Is that because of the termination of one of the districts? Mr. Ellestad stated yes. The district terminated in 1996 so it will not be available for payment in 1997. Mr. Commers stated it is true there is always a budget crunch. As the HRA has reconstituted themselves in terms of economic development and having started the focus of revitalization and rehabilitation, this makes it financially difficult for the HRA as well. As he has told the representative from the school district, they must be careful because there are no assurances that these funds will continue forever. Mr. Backlund stated he appreciated that and agreed. The important thing is to work together and to have an understanding of their goals and objectives. Mr. Meyer stated this payment is unique in the state and something we have been doing for a number of years. We have returned HRA- generated funds to our school districts. HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 12, 1996 PAGE 3 Mr. Commers stated our position is unique. We may be one of only one or two HRA's in the state who have been in the habit of returning to the school districts some of the excess monies as defined in the law and have been doing so for approximately five or six years. As you can see, this has amounted from $250,000 to $400,000 from the HRA. The HRA does want to be in partnership with the school districts and recognizes the value. MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the 1997 School District Referendum Levy Return Agreements with Independent School Districts 11, 13, 14, and 16, as presented in the agenda packet. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Huber, Superintendent of Spring Lake Park, stated he would like to share what these funds have provided in his district. He thanked the HRA and stated the student and community appreciate this support. This municipality has been the most consistent municipality in sharing and providing support. It does make a difference. This will provide for two teachers or five paraprofessionals or provide for community services. He thanked the HRA for their generosity. INFORMATION ITEMS• 5. FRIDLEY EXECUTIVE CENTER UPDATE Ms. Dacy stated MEPC is under contract to market the Fridley Executive Center site to potential users. MEPC has made a number of contacts. They are still meeting with a major office entity. The Fridley site is part of the evaluation process. We should hear about that after the first of the year. MEPC made another proposal to another user for 80,000 square feet as recently as last week. There is another smaller potential user looking for restaurant/ hotel sites. MEPC has no solid proposal at this time, but contacts are being made. Ms. Dacy stated the marketing brochure as prepared by Merrill Busch is now in draft form, which Ms. Dacy presented. Mr. Commers asked if this brochure addressed those core items about which people had questions. Ms. Dacy stated part of the mission of the brochure is to be able to provide inserts to aim at those specific issues. One of those questions is the general impression that the area is more oriented to manufacturing as opposed to corporate campus -type office parks. HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 12, 1996 PAGE 4 The idea of the brochure is to get quotes from some of the major companies in the City that have significant white collar types of employment to convey the message that this would be a suitable site for a corporate office user. Merrill Busch has succeeded in getting some good quotes. Ms. Schnabel asked who the target people are that this brochure would go to. Ms. Dacy stated the brochure would community in addition to promoting inserts, if someone has a specific information accordingly. They are generic and the inserts would be f( that they want to attract. be used by MEPC to promote the the site. Because of the question, we can tailor that trying to keep the brochure )cused toward the specific people Mr. Commers asked if staff had asked MEPC about their other development activities, specifically in Winter Park. Ms. Dacy stated she did not obtain details on the development in Winter Park. Mr. Commers asked staff to inquiry about this development. Ms. Schnabel asked when the HRA would make a review of MEPC. Ms. Dacy stated a review would be conducted in August, 1997, which is when the contract expires. If the HRA wishes to request MEPC to attend a meeting, that is within your purview. Mr. Commers stated it looked as if MEPC has some things moving. He suggested they see if something comes to fruition in the next few months. Mr. Commers stated, regarding the intersection at I -694 and University Avenue, with Home Depot helping with the design, there will not be a big commitment required by the HRA. Ms. Dacy stated this was correct. They hope to get that done this year so there are no conflicts when it comes time to proceed with Highway 65. Ms. Dacy reviewed the proposed design for the intersection. MnDOT will be paying for the construction. Home Depot will pay for the design. Mr. Commers asked who would approve the final design. Ms. Dacy stated, because the project is associated with the state, MnDOT will approve the design. The HRA does not have specific input. The City Council will approve the plans. HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 12, 1996 PAGE 5 6. 1996 HOUSING PROGRAM REVIEW Mr. Fernelius provided a summary of the accomplishments of the housing programs for the year. Mr. Fernelius stated, in March, staff started working with CEE to redesign the housing rehabilitation programs to offer "one stop shopping" for residents to come in, meet with a loan representative, and provide assistance as needed. In addition to redesigning the programs, they established a housing hotline for people to call at CEE to get information and submit applications over the phone. CEE also has a staff person at city hall on Tuesday evenings to answer questions, close loans, provide applications, etc. This has worked quite well. The HRA hired a home remodeling advisor to assist homeowners in evaluating home improvement topics, work they would do to their home, hiring contractors, etc. This has proven to be very popular. The HRA has also provided funding support. The first Home Remodeling and Garden Fair held in April was very successful. Mr. Fernelius stated all this has produced some interesting results. Year to date, CEE has processed 188 loan applications of which 145 loans and grants have been issued for a total of $1.7 million. The remodeling advisor has received a number of phone calls and has made 146 visits. Mr. Fernelius stated staff has been evaluating the quality of customer service with residents and both CEE and the remodeling counselor have received very high marks. People have been satisfied with the programs and the quality of the customer service. At the remodeling fair, approximately 1200 to 1500 people attended. Staff plans to hold another fair on April 5, 1997. Mr. King provided a copy of his memo dated December 12, 1996, which summarizes the Fridley Home Improvement Program. Rental properties are not included in the information. Mr. King reviewed the information. Both exterior and interior improvements were made as part of this program. Mr. King stated he did a brief interview with six borrowers in preparation for the meeting. The main reason for their participation was the interest rate. One interesting item was that most people noted that with a $25,000 maximum loan, they could do more work than they had expected to do. The average loan of $14,000 in Fridley is more than twice the average of CEE's usual loan so some substantial improvements are being done. All of the borrowers felt the program was successful and also noticed their neighbors were doing work. CEE felt it was a success this year and HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 12, 1996 PAGE 6 enjoyed working with City staff. Staff facilitated CEE getting the numbers that they did. Mr. Commers asked how these numbers shaped up with Mr. King's experience in other communities. Mr. King stated CEE's most similar experience has been with the Neighborhood Revitalization Program in the City of Minneapolis. In Minneapolis, the terms are similar, but the dollars available are different. The loans are of a smaller magnitude. CEE did some marketing but did not market as heavily as they could have. The marketing they did was very successful. If you were to talk to most contractors, only 20% actually finance home improvements. By doing this, you get those people who need the assistance to do the work and those who do not need financing are encouraged to do work also. CEE is very encouraged. CEE has never had much experience working in a single community. Other cities are watching this program and are impressed. Mr. Meyer stated the Hyde Park area is an area of concern as far as housing. Less than 10% of the total dollar amount went to this area, but the value of the individual loans are only about half. Are we reaching those people we want to reach in areas such as this? Mr. King stated one factor in the Hyde Park area was a $4,000 cap per unit. The owner was required to match the HRA loan so they had to get other financing for the match. There were some rental properties that had loans larger than the average. Ms. Dacy stated residents in the Hyde Park area could take advantage of the 5% loan. In addition, the matching deferred loan was an additional incentive program. The full array of programs was available to residents in Hyde Park. Mr. King stated CEE did use the 5% loan in conjunction with the Hyde Park loan. They did a half dozen rental properties with energy updates. There were some nice improvements made in Hyde Park this year. Hopefully, we can do more intense marketing and get the rental properties going better. Mr,. Commers stated 15% of the loans and 7.5% of the dollars went to Hyde Park. In terms of priorities, he was wondering if staff should try to build this up for 1997. Mr. Fernelius stated staff are evaluating the Hyde Park program. He, Ms. Dacy and Mr. King met last week to talk about that issue. They are concerned and know there is more work that needs to be done there. They have some ideas that may help to promote the HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 12, 1996 PAGE 7 program and increase the amount of rehabilitation. Ms. Dacy stated another part of the Hyde Park program is the scattered site program. The area has three new homes and the HRA has acquired four properties so there is a significant dollar investment. Mr. Commers stated this is a challenge that they need to focus on. He would like staff to think about this over the next month or two and come back with some specific ideas. Mr. Meyer asked what controls are in place to insure that the work has been done according to the loan requirements. Mr. King stated there is a post - installation inspection. The borrower has nine months to complete the work. Before the work is completed, someone from their office will visit and verify the work is done. They are working with staff to tighten up the program. They release funds to the contractor at closing. Initially, they tried to mirror the program after the Minnesota Housing Finance Agency programs because HRA dollars were being used, it became evident that tighter controls were needed. Mr. Fernelius stated that is an issue that will be evaluated. Mr. Meyer asked if there is any control over the contractor selected. Mr. King stated they have found it best to let the borrower choose the contractor they feel most comfortable with. Mr. Meyer asked, in reviewing the work, how concerned are you with the quality. Mr. King stated everyone's level of satisfaction is different. It is not our position to make that determination. We are there to make sure the funds are used for the intended purpose. They rely on the City inspector to grade the quality and correctness of the work. Mr. Meyer asked if staff had a list of approved contractors. Mr. Dacy stated contractors have to be approved by the State of Minnesota. They obtain the license and the permits. Ms. Schnabel asked if the work could be done by the homeowner. Mr. King stated yes. Roughly 100 of the projects are being done by the owner. Their experience has been that it is generally 35% to HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 12, 1996 PAGE 8 MM. Mr. Van Nelson stated the remodeling counselor service started this past spring and runs independent of the housing program. Homeowners, if interested, can contact him and set up a site visit or ask questions. There is no obligation. Since spring, he has received 394 inquiries for visits. Of those calls, he has visited 146 homes. A typical visit consists of an inspection of the home, talking about specific project ideas and the work that needs to be done, etc. Of those site visits, 44 homeowners have closed on a loan through CEE which is a good sign that residents are interested in the service. He is aware of several projects that are smaller and work has been completed. Reasons for typical site visits can include moisture in the basement to more initial planning for something like an addition and find out what resources are available. Residents also want to know how much an improvement will cost, how it will affect the value of their home, options available to them, selecting a contractor, the contractor's responsibilities, etc. He does not recommend contractors, but he does go over what to look for in a contractor. Mr. Van Nelson showed some photos of projects before and after completion. Mr. Fernelius stated, for next year, staff are not planning to make any substantial changes to the loan programs in terms of eligibility, criteria, interest rates or loan amounts. Staff will be evaluating a cap on loan volume. Staff will increase the marketing efforts and promote the MHFA rental rehab programs. Mr. Fernelius stated budget issues include continuing to look for other financing including MHFA to help finance loans and secondly using the City's loan to finance a portion of the program. The budget will be presented in January, 1997, which will provide additional details. Mr. Fernelius stated administrative issues include implementing an escrow procedure which will require the borrower to place their loan funds in an account that would be managed by CEE until the project is completed. He thought this is a good procedure, is financially prudent, and will reduce the risks to the HRA. Mr. Fernelius stated Mr. Van Nelson will be leaving his position as remodeling advisor next week and thanked him for his service. Mr. Meyer asked what the income cap must be for a homeowner to be eligible for some of the programs. Mr. Fernelius stated the maximum income is $58,658 per household. Mr. Meyer expressed his dismay for using public funds for many of HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 12, 1996 PAGE 9 the projects seen here. Some projects are quite elaborate in terms of adding space, improving the exterior, shifting a garage, etc. He does not personally see why public money is being used for that and why people with incomes of up to $58,000 cannot do this until they get a 5% loan. He is sure that each of the properties is improved, but is it appropriate for these types of uses? Some of these are elaborate additions. He is more concerned about heating, plumbing, electrical, deterioration of the house both on the interior and exterior, etc., and to try to find ways to emphasize those types of things. If a homeowner wishes to sell, the lending agency demands an engineering analysis of these systems rather than the number of bedrooms, shifting a garage, or making more light come into the house. He felt in some fashion they are giving too much emphasis for these types of improvements with public monies. Mr. Commers stated to keep in mind that only 13 out of 352 that resulted in additions to homes. There were 138 that consisted of the types of things you are talking about. The comments are certainly noted. Mr. Meyer stated another issue that is rather interesting is that the homeowner can have sweat equity. From a banker's standpoint, if a homeowner wants a loan for an improvement, would a bank allow a homeowner to do part of the work or must it be done by a contractor? Mr. McFarland stated the bank allows a homeowner to do the work on the basis of trust that they would complete the work and that it would be done properly. There was a time when they were more restrictive but they are willing to go along with it. Ms. Dacy stated, to clarify the exterior improvements, many are directly related to code improvements. Updates in the interior are also code requirements. $58,000 sounds like a lot of money. However, the average household income is well below that. In a lot of cases, 2/3 of that average household income of $43,000 is dual income. Many also have children. This is affecting 145 units which is a small part of the 10,000 units in the City. There are a lot of private improvements being made. Mr. Commers stated it looks like the program is doing well and accomplishing a great portion of what we wanted it to do. Congratulations to staff and CEE for that. He expressed appreciation to Mr. Van Nelson for his help and expressed best wishes to him in his future endeavors. OTHER BUSINESS: 6. MEMO REGARDING SUH CONDEMNATION: HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 12, 1996 PAGE 10 Mr. Commers stated the agenda packet included a memo regarding the Suh condemnation for information purposes. 7. MORTGAGE FINANCING PROGRAM: Mr. Commers stated the agenda packet included a letter notifying the HRA that Anoka County HRA is looking at a mortgage financing program. He asked staff to make an analysis of that to see whether it would be advisable to continue their own program or turn it over to them. He asked to which program would this be similar. Ms. Dacy stated Mr. Fernelius now orchestrates application to MHFA. Under this proposal, they would participate with other communities to participate in the Anoka County program. Mr. Fernelius stated, this year, they had about $500,000 through the program. He was not sure how many loans this included. This is administered through a number of private banks. Staff only provides information about the program to interested residents. 8. STREET LIGHTING: Mr. Commers stated the agenda packet include a memo regarding street lighting as requested by Mr. Fitch and Mr. Schroer. He asked if Ms. Dacy had anything more to add. Ms. Dacy stated she will be following up. 8. DEMOLITION BIDS: Ms. Dacy stated staff received confirmation on bids for demolition of four properties acquired by the HRA and one property the City acquired. This property will be paid for separately. Herbst & Sons has the lowest bid. Staff recommends accepting their bid. MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the demolition bid from Herbst & Sons for $22,500. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ADJOURNMENT: MOTION by Mr. Meyer, seconded by Ms. Schnabel, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE DECEMBER 12, 1996, HOUSING AND REDEVELOPMENT HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 12, 1996 PAGE 11 AUTHORITY MEETING ADJOURNED AT 8:55 P.M. Respectfully submitted, Lavonn Cooper Recording Secretary S I G N- I N S H E E T HOUSING AND REDEVELOPMENT AUTHORITY MEETING, December 12, 1996 Name Address /Business � rl G —2 IV o "j l3 C/« UNi> s ��s" �;,>v,z .s 15z,) "/, y it �/ • 111 O v- 1154 s HRA RESOLUTION NO. - 1997 RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES FOR THE FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY IT IS HEREBY RESOLVED that Norwest Bank N.A. and its successors are hereby designated as a depository for the funds of this corporation. IT IS FURTHER RESOLVED that checks, drafts, or other withdrawal orders issued against the funds of this corporation on deposit with said bank shall be signed by two of the following: Richard D. Pribyl, Finance Director - Treasurer William W. Burns, Executive Director /City Manager and that said bank is hereby fully authorized to pay and charge to the account of this corporation any checks, drafts, or other withdrawal orders. BE IT FURTHER RESOLVED that all transactions, if any, relating to deposits, withdrawals, re- discounts and borrowings by or on behalf of this corporation with said bank prior to the adoption of this resolution be, and the same hereby are, in all things ratified, approved, and confirmed. BE IT FURTHER RESOLVED that any bank or savings and loan may be used as depositories for investment purposes so long as the investments comply with authorized investments as set forth in Minnesota Statutes. BE IT FURTHER RESOLVED that the signatures of two of the following named City employees are required for withdrawal of HRA investment funds from savings and loan associations: Richard D. Pribyl, Finance Director - Treasurer William W. Burns, Executive Director /City Manager BE IT FURTHER RESOLVED that any brokerage firm may be used as a depository for investment purposes so long as the investments comply with the authorized investments as set forth in Minnesota Statutes. PASSED AND ADOPTED BY THE HOUSING & REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS DAY OF , 1997• ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR 1 LAWRENCE R. COMMERS - CHAIRMAN TO: FRIDLEY KR.A FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES DECEMBER 1996 - 12th Month 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: CENTER FOR URBAN POLICY 460 -0000-430 -4221 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: TOTAL EXPENDITURES - DECEMBER 1996 File: \EXDATA\HRAITIFl96BILL.xls Details 2 Account #'s for CR City's Use Code 19,800.75 101 -0000 -341 -1200 H1 275.85 101- 0000 - 336 -3000 HA 200.25 101 -0000- 336 -3000 HA 2Q.276.65 41.16 236 -0000- 336 -3000 HA 15.14 236 - 0000 -336 -3000 HA 56.30 236 - 0000 - 219 -1001 11 236 -0000- 219 -1100 12 3.50 236 - 0000 - 219 -1200 13 3.50 520;336:65. r-I r wa Uw a� E- 0: O C14 w a H z w a O H PQ PQU) wa Q a H Q Q za' �D 0 H za H H � U xa W(U) a,j, A U Cxi W U) 04 a) U a) a U) ro U rn U a) q Q�OFG�� rn Ea E-1 E-1 oD rn U) U) U) m www O o\Iaaa IO C) •. 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In order to create a project area, at least 70% of the parcels must be defined as substandard. All of the properties currently meet this requirement. If, however, the properties are demolished prematurely, a district could not be created. The attached resolution only identifies the 218 -57`h Place property as substandard, but does not commit the HRA to any specific redevelopment proposal. The HRA would have 3 years from the date of approval to initiate a project. A separate resolution must also be passed by the City Council. RECOMMENDATION Staff recommends that the HRA approve the attached resolution determining that 218 -57th Place is a substandard building and is to be included in a tax increment district. GFl M -97 -4 +612eesi2gs CASSERLY MOLZAHN 026 P02 DEC 31 ' 96 17:30 Casserly Molzahn & Associates, Inc. Suite 1100 Southpoint Office Center - 1650 West 82nd Street - Minneapolis, Minnesota 55431 Office (612) 885 -1298 - Fax (612) 885 -1299 M E M O R A N D U M TO: City of Fridley Attn: Barbara Dacy Grant Fernelius FROM: James R- Casserly RE: 218 - 57th Place DATE: December 31, 1996 Attached you will find Resolutions for HRA and the City Council. The purpose of the Resolutions is to find that the 218 - 57th Place site contains a structurally substandard building and that the site may be incorporated into a Tax Increment Financing District. The Resolutions are helpful because it is preferable not to create a tax increment district until we know that there is a strong potential for development_ However, if the HRA or the City demolish the building and prepares the parcel, then the City and HRA will no longer be able to qualify that parcel for inclusion in a redevelopment tax increment district_ The enclosed Resolutions simply provide the HRA and the City with the option of including that parcel within a redevelopment tax increment financing district even after the building is removed. The City /HRA has three (3) years from the date of approval of the Resolutions to file a request for certification of this site as part of a district with the County Auditor. Again, these Resolutions only preserve your options and do not commit you to any further action. We recommend their approval. JRC /kh Enclosures nifj - +-6128851296 CASSERLY MOLZAHN 026 P03 DEC 31'96 17:30 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION DETERMINING THAT A CERTAIN PARCEL IS OCCUPIED BY A STRUCTURALLY SUBSTANDARD BUILDING AND IS TO BE INCLUDED IN A TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority In and For The City of Fridley (the "Authority ") as follows: Section 1. Recitals. 1.01 The Authority has considered the acquisition of and /or redevelopment of a parcel identified as follows (the "Parcel "): 1. 218 - 57th Place PIN 23- 30 -24 -23 -0030 1.02 Minnesota Statutes, Sections 469.174 through 469.179, inclusive, as amended and supplemented from time to time (the "Tax Increment Act ") provides for the establishment of a Tax Increment Financing District as a Redevelopment District. The Tax Increment Act allows for the inclusion of parcels within a Redevelopment District after substandard buildings have been removed by complying with Minnesota Statutes 469.174, Subd. 10(b). Section 2. Findings. 2.01 The Authority hereby finds that the acquisition and /or redevelopment of the Parcel further the goals and objectives of the Redevelopment Plan. 2.02 The Authority hereby finds that the Parcel is occupied by a structure that is vacated and structurally substandard as defined in the Tax Increment Act and that the structure must be demolished and removed from the Parcel. 2.03 The Authority intends to demolish or cause to be demolished the substandard building and to prepare the Parcel for redevelopment. Section 3. Declaration of intent._ 3.01 The Authority hereby declares its intent to include the Parcel 3C +6128851298 CASSERLY MOLZAHN Page 2 - Resolution No. 026 PO4 DEC 31196 17:31 within a type of a tax increment financing district known as a redevelopment district within 3 years of the filing of the request for certification of the Parcel as part of a district with the Anoka County Auditor. Section 4. Notice to County Auditor. 4.01 If the Authority establishes a tax increment financing district and includes the Parcel, then upon filing the request for the certification of the tax capacity of the Parcel as part of such district, the Authority shall notify the Anoka County Auditor that the original tax capacity of the Parcel must be adjusted as provided in Minnesota Statutes, Section 469.177, Subd. 1, Para. (h) . PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS DAY OF 1997. ' LAWRENCE R. COMMERS - CHAIRMAN ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR 3D MEMORANDUM HOUSING AND REDEVELOPMENT AUTHORITY DATE: January 3, 1997 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Lindstrom Metric Request for Tax Increment Financing Assistance Lindstrom Metric distributes metric bolts and equipment. The company is owned by Virgil Lindstrom, who is a Fridley resident. The company is currently located at 8101 Ashton Avenue N.E. Lindstrom Metric would like to sell its existing building and build a new 60,000 square foot building on a five acre site on the west side of Main Street and north of 81 st Avenue. Lindstrom Metric has inquired about the potential for TIF assistance for soil correction. The parcel is within Tax Increment Financing District #3, and has poor soils on the site. The project cost may be between $2,000,000 - $2,300,000. The same approach which was used for John Allen and American Excelsior is recommended. A 5% grant and a 5% loan would amount to approximately $100,000 - $115,000 each, or a total of $200,000 - $230,000. Lindstrom Metric may also complete an additional 30,000 square foot expansion in the future. Tax Increment District #3 expires in 2007. The increment generated from just the 60,000 square feet will be significant (about $400,000 in 1997 dollars). The HRA's grant amount would be able to be recovered in two to three years. Lindstrom Metric does not want to initiate construction on the site until its existing building is sold. As a result, Lindstrom Metric would like a commitment for tax increment financing assistance for up to a two year period, or sooner, if the existing building can be sold. The TIF assistance would not be provided until after the project is completed anyway, and the project will generate adequate increment to cover all of the HRA's assistance. 0 Lindstrom Metric January 3, 1997 Page 2 Unless otherwise directed, we will continue working with Lindstrom Metric as outlined in this memo. A development contract for approval may be submitted for the HRH's review at its February or March meeting. No action is needed by the HRA at this time. B D /dw M -97 -7 911- Vacant Commercial and Industrial Property Inventory p y to ry Property Information Owner: William Penk 22 Hawthorne Hopkins, MN 55343 646 -1717 PIN: 3- 30 -24 -14 -0005 r -ea: 237,375 Sq. Ft./5.45 Ac. Market Value: $215,000 (1995) - Zoning: M -3, Outdoor Intensive 1 Wetlands on Site trial Located in TIF #3 19 MEMORANDUM HOUSING AND REDEVELOPMENT AUTHORITY DATE: January 3, 1997 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Proposal by Steve Linn to Rehabilitate Dick's Wheel and Tire, and Redevelop a Portion of 57th Avenue Steve Linn has a Goodyear franchise and is proposing to reoccupy Dick's Wheel and Tire on 57th Avenue. The property is owned by Holiday Plus, and Mr. Linn is in the process of negotiating an acquisition price. In addition to opening a Goodyear Service Center on that site, Mr. Linn has also inquired as to the possibility of redeveloping the three parcels to the west of Dick's Wheel for a 7,000 square foot strip mall. The strip mall would probably consist of two tenants, a video store of approximately 6,000 square feet, and a fast food restaurant (like a Subway) of approximately 1,000 square feet. Mr. Linn is in the process of contacting the three property owners. The owner of the single family home west of Dick's Wheel and Tire is apparently interested in selling. The property along 57th Avenue is currently zoned C -2, General Business. The proposed uses are permitted uses in the C -2 zoning district; however, detailed site plans have not been submitted. A brief review of the reoccupation of the Dick's Wheel and Tire building has been completed, and there is no need for variances or special use permits. Mr. Linn inquired as to the possibility for tax increment assistance to not only rehabilitate Dick's Wheel and Tire but also to complete the redevelopment for the small strip mall. I asked Mr. Linn for additional information including a financial "sources and uses" of both projects so that Jim Casserly and I could complete a typical tax increment analysis. I asked for the information prior to January 1St and as of the writing of this memo have not heard back from Mr. Linn. 6i Dick's Wheel and Tire January 3, 1997 Page 2 No action is needed by the HRA on this item. A verbal update will be provided at the meeting. BD /dw M -97-6 5A m m mmul •R*N INJIS PJC 1 == YN laallS Z/1 Z 9 W Z W H ti MEMORANDUM HOUSING AND REDEVELOPMENT AUTHORITY DATE: January 3, 1997 N TO: William Burns, Executive Director of HRA �� FROM: Barbara Dacy, Community Development Director SUBJECT: Fridley Executive Center Update Chairperson Commers has forwarded a significant amount of information about the office commercial and industrial markets. I am now in the process of reviewing this information. In addition, a meeting with Dave Jellison and Leslie Jowette is being scheduled so that the HRA Chair, Mayor, and staff can review MEPC's progress in attracting users to the site. Another update will be provided at the February meeting. M -97 -8 f: MEMORANDUM HOUSING AND REDEVELOPMENT AUTHORITY DATE: January 3, 1997 1 P TO: William W. Bums, Executive Director of HRA ,�i0 FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Mississippi Street/3rd Street Intersection Project BACKGROUND The approved construction bid for the Mississippi Street/3rd Street project was $212,626.20 plus 15% for final design and engineering costs ($37,073.08). The development contract with Rottlund designated BRW Inc. as the City's consultant for the final design, engineering, and inspection for the street project. The City conducted the bid process, and commitments from each of the four partners was obtained. Rottlund paid its $40,559 to the HRA at closing, Anoka County agreed to pay $60,059, and Holly Center agreed to be assessed up to $55,000. The HRA at its July 11, 1996 meeting passed a resolution agreeing to reimburse the City for the remainder of the costs after the remaining three partners paid their share. RETAINING WALL AT RAO MANUFACTURING On September 12 1996 the HRA authorized staff to issue a check up to $2,500 for an easement along the an actunng site or a IMaM wall. Secause the so-uffr de of the Mississippi Street pavement had to be widened, and because of the change in grades on the RAO site, a retaining wall was necessary. The construction of the wall then caused additional expenses for landscaping, grading, irrigation, and driveway repair. The additional costs beyond the easement acauisition is agoroximatelv $10,854. A savings or a e uc o was simultaneously filed as a result of using pain s npi g as opposed to epoxy products for a net cost of $9,080. The easement acquisition cost is $3,298 or $2.00 /square foot. The cost to the HRA, however, will only be $2,061.25 or $1.25 /saure foot. BRW agreed to pay the difference, or $1,236.75, since there was some inconvenience to RAO during construction. Unfortunately, power was cut off to the site for three or four hours. 7 3'd Street Intersection Update January 3, 1997 Page 2 OTHER ADDITIONAL COSTS Unanticipated however were other costs just recently identified by BRW (see attached December 20, 1996 letter). The total additional cost is approximately $34,106. The most significant cost of this amount (approximately $25,000) was the decision to complete additional millin finder, wear course and base course work a smootr ransitions' In addition additional pavement was needed on the HolIv Center and RAO nvve_w_a_ys_. nfortunately, BRW s nsgecto r did not consult with a City emp oyee requ autho— hz–a-t3n of this work. In retrospect, the work was necessary, howevor,t not aware of the changes until the most recent request for payment was received in mid - December. A change order is scheduled for consideration by the City Council on January 27, 1997. Pnor to a ime, s a wi I be requesting additional Tun S-TroTn-bKvvanMposigil5iyTur3riI Anoka County. POTENTIAL COSTS TO THE HRA Staff will make every attempt to reduce the cost to the HRA. The costs and payments are now estimated as follows: Original Amount RAO Construction RAO Easement Change Order #1 Final Design Total Rottlund Share Holly Center Anoka County Balance $212,626.20 $ 9,080.00 $ 2,061.95 $ 34,106.00 $ 37,073.08 $294,947.23 $40,559.00 $55,000.00 $60,059.00 $139,329.23 It is hoped that at least two- thirds of the additional $34,106 can be obtained from BRW or Anoka County. Originally, the HRA budgeted $42,720 for "site grading" and $115,000 for "public improvements ". The balance of _$_139,329 is within the $157,710 budget for this item. No action is needed by the HRA at this time. An update will be provided at the next meeting. M M -97 -5 7A December 20, 1996 Barbara Dacy B R w INC. Community Development Director City of Fridley 6431 University Avenue NE Fridley, MN 55432 Re: Mississippi Street Improvements Dear Barb: Enclosed for your review is a mark -up of the final application for payment and Supplemental Agreement No. 3 for the Mississippi Street improvements. As we Planning discussed, the work to date has over -run the contract amount by approximately Q+ Transportation $33,000. Engineering Urban Design There are several factors that influenced the quantity over -runs that increased the actual contract amount spent. I will attempt to highlight them for you. Thresher Square 700 Third Street so. 1) There was a need. to remove additional pavement in the Holly Center to Minneapolis, obtain _a reasonable straight edge to match pavement. This also increased MN 55415 the amount of pavement quantities needed to patch the area. 612/370 -0700 Fax 612/370 -1378 2) We were unable to salvage and re- install several drainage structures. The condition of the structures were such that they were not re- usable. Denver Milwaukee 3) BRW missed the contract quantity amount on the salvage concrete pavers Minneapolis item. We inadvertently left out the salvage of the median strip. Newark Orlando Phoenix 4) Pavement milling expanded to provide smooth transitions. This also Portland resulted in additional wearing course installed. San Diego Seattle 5) Pavement repairs at RAO extended beyond what was anticipated. RAO requested the removal of their driveway up to their parking lot to provide a smooth transition. 6) Additional concrete walk was poured to connect the travel agency to the Holly Center. Barbara Dacy December 20, 1996 Page 2 7) 8) Additional temporary lane tape was required to provide for safe traffic control due to the multiple phases needed to construct the improvements. The need for retaining wall along the RAO property. This caused a ripple effect in that irrigation systems need repair, additional landscaping was needed, a tree was removed, etc. The above summarizes in general the changes that increased the contract amount. We need input from you or Jon Wilczek if a Supplemental Agreement is necessary to cover the cost over -runs or if Supplemental Agreement No. 3 needs to only cover those items that did not have a bid item. We have done this both ways depending upon how the municipality likes to handle the situation. Please let us know your preference. If you have any questions or need additional information, please feel free to contact us. We hope this will bring this project to closure. Sincerely, BRW, INC. Paul Danielson, P.E. Project Engineer Enclosures cc: Jon Wilczek, City of Fridley Tom Harrington, BRW Ray McCourtney, BRW File 2881A81 PAYAPPLC WPD 7C MEMORANDUM HOUSING AND REDEVELOPMENT AUTHORITY DATE: January 3, 1997 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: 1997 HRA Budget We are now in the process of preparing the draft for the 1997 HRA budget. Depending on how far we can progress in the next few days, there may be an opportunity for a brief amount of discussion after the HRA meeting in January. If not, a work session with the HRA may need to be scheduled prior to the February meeting. Since the joint meeting in November, Grant Fernelius and I have been extremely busy on other activities, and were not able to spend the amount of time necessary on preparing the HRA budget. B Dldw M -97 -9 DATE: January 9, 1997 MEMORANDUM HOUSING AND REDEVELOPMENT AUTHORITY TO: William Burns, Executive Director of HRA 41 4f 15, FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Consider Proposal to Share Remodeling Advisor Services with City of Blaine As you know, last December Robert Van Nelson resigned as Remodeling Advisor to move overseas. Since then, staff have been in the process of trying to hire a replacement. The position was advertised last month and 31 people applied. Unfortunately, almost half the applications were rejected because they were incomplete. Of the remaining applications, none of the candidates had sufficient expertise or training in the remodeling field, particularly in an advisory capacity. As a result, the search is being extended to find additional candidates. Coincidentally, the City of Blaine has been evaluating housing program options and expressed interest in establishing a similar position. After several discussions with Blaine officials, a joint - proposal was drafted to create a full -time position which would split time between the two communities. To follow is a brief overview of the proposed changes. Current Position Currently, the Remodeling Advisor is defined as a temporary, part-time position with a maximum of 20 hours per week. The hourly rate is $14.88. Based on the success of the service, staff is planning to increase the number of hours per week from 20 to 24. The only benefits would be holiday and vacation pay. Total cost for the position is estimated at $20,781. This represents a $3,656 increase from 1996. Remodeling Advisor Memo January 9, 1997 Page 2 Proposed Position The proposed position would be a full -time, contract employee of the HRA. The pay range would be $14.88 to $16.56 per hour, plus benefits. The attached spreadsheet provides a detailed summary of the costs. The total estimated cost for the position is $43,814. The City of Blaine would execute a separate service contract with the HRA for 16 hours of service per week. Blaine would pay 40% of the total costs for the position ($17,525). The net cost to the HRA would be approximately $26,288 per year or about $5,507 more than the current level. The bulk of this increase is due to the benefit costs, such as retirement and health insurance. The advantage of a contract position is that the HRA is not responsible for a full -time position should the City of Blaine terminate their service agreement with the HRA. Also, for logistical purposes it is more advantageous that the HRA be in the position of hiring and supervising the employee, rather than attempting to execute a 3 party contract. If both communities were to hire the employee separately, the position would not pay benefits and therefore not be as attractive. Although this is an increase over last year, staff believes that the full -time arrangement will be more attractive to prospective job candidates with the appropriate amount of expertise. Robert Van Nelson established an excellent program. It is imperative that a candidate be found of equal quality. Recommendation Additional details still need to be worked out with Blaine, however staff believes this is an innovative approach to providing joint services. Unless otherwise directed, staff will proceed with the necessary job advertisements and interview process. The actual employment and service agreements with Blaine are being prepared now and should be ready for consideration by the HRA at their February meeting. GF/ M -97 -22 Sheetl Comparison of Costs Remodeling Advisor Wages Annual Leave and Holiday Pay FICA (7.65 % x Salary) ICMA Contributions (4.48% x Salary) Health Insurance Dental Insurance Workers Compensation (2.7% x Salary) Sub -Total Less Blaine's Share Balance Cost Difference Page 1 Remodeling Advisor Cost Projections 1/9/97 Full -Time Part -Time 1996 $ 31,387 $ 18,832 $ 15,600 $ 3,452 N/A $ - $ 2,401 $ 1,441 $ 1,193 $ 1,406 N/A N/A $ 4,140 N/A N/A $ 180 N/A N/A $ 847 $ 508 $ 421 $ 43,814 $ 20,781 $ 17,215 $(17,525) $ - $ 26,288 $ - $ 5,507 $ 3,567 32% 21% DATE: January 9, 1997 MEMC HO REDEVI AUT3 TO: William Burns, Executive Director of HRA *#(0' FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: First -Time Homebuyer Program Last November we received a letter from the Anoka County HRA informing us of the opportunity to participate in a first -time homebuyers program through the County. Last year, the County opted to participate in the Minnesota Housing Finance Agency's program. Fridley also participated in the MHFA program. This year, the County plans to join several other metro area housing authorities in issuing bonds for an independent program. As part of their proposal, the County would allow prospective homeowners to include rehabilitation financing in their mortgage (not allowed under the MHFA program). All other eligibility criteria would remain the same as MHFA. The option for Fridley would to be to participate in either the MHFA or the County program, but not both. After reviewing the details of the County's program, staff have some reservations about participating in the County's program at this time. It is unclear which financial institutions would participate and whether they would agree to do purchase /rehab loans. Further, the County's program would be available on a first -come, first -serve basis rather than a set aside amount for each community. Without more information on the participating banks and program details, we are reluctant to switch to a new program without a proven track record. No action is needed at this time. Applications for the MHFA program should be arriving in the next few weeks and staff will have more information at either the February or March HRA meeting. At this time, it appears we will continue with the MHFA program, but plan to monitor the County's approach. M -97 -19 12 ANOKA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY Paul McCarron, Chairman Margaret Langfekf, vice Chair Dennis D. Berg Dave McCauley Dan Erhart Dick Lang Donald H. Findell November 15, 1996 1-- 2- 3 n=or A-- As you know, in 1996 the Anoka County Housing and Redevelopment Authority (HRA) applied for funding for the First -Time Homebuyer's Program to be utilized in the cities /towns within Anoka County which did not apply for these funds on their own. As a result of this effort, $4,423,606 in bonding was authorized and over 45 families were able to purchase a home in areas of our county where this program had not been available in the past. In 1997, the Anoka County HRA has determined to again seek bonding authority on the same basis as they did in 1996. However, it is our intention to join with several other large Housing and Redevelopment Authorities in issuing the bonds rather than having them issued by the Minnesota Housing Finance Agency (MHFA) through t e city participation program. The main reason for this approach is that we will have more flexibility in program administration which will allow us to _ inclu a housing rehabilitation option with it— So, for example, a young family might identify a house which is in need of some improvements and, under this program, they will be able to include the necessary repairs in the mortgage. (n addition we are considering the possibility of structuring the-program in a way which includes some down payment assistance. The purpose of my letter is to make you aware of these program improvements so that you can make a determination on whether you want to be involved dirpctl with the MH�ogLam or to fall under tLe-Anoka-Counti-HEIA-progimm- It is worth noting that the Anoka County HRA will cover the costs for the program and that, if all cities /towns are included, the total bond issuance for Anoka County will be in the $6 million range. If you want to be included under the Anoka County HRA First -Time Homebuyer's Program, it is not necessary for you to take any action. You will automatically be included in our program unless you apply to be included in some other First -Time Homebuyer's Program. If you have any questions, please call Tom Durand, 323 -5700. Sincerely, Paul McCarron, Chair Anoka County Housing & Redevelopment Authority cc: City Administrator /Manager /Clerk ACHRA Trustees ACHRA Intergovernmental and Technical Advisory Committees Telephone: (612) 323 -5680; Fax: 323 -5682; TDD%iTY: 323 -5289 Government Center, Administration Office, 2100 3rd Avenue, Anoka, MN 55303 -2265 The Honorable Jack McKelvey Mayor, City of Andover 15327 Nightingale Street N.W. Andover, MN 55304 Mayor McKelvey Jack The Honorable Pete Beberg Mayor, City of Anoka 3931 Tenth Avenue North Anoka, MN 55303 Mayor Beberg Pete The Honorable Cookie Carpenter Mayor, City of Bethel 114 Main Street NW Bethel, MN 55005 Mayor Carpenter Cookie The Honorable Elwyn Tinklenberg Mayor, City of Blaine 11234 Forest Court N.E. Blaine, MN 55449 Mayor Tinklenberg Elwyn The Honorable Tom Wilharber Mayor, City of Centerville 6849 Centerville Road Centerville, MN 55038 Mayor Wilharber Tom The Honorable Lee Ann Osbun Miller Mayor, City of Circle Pines 376 Nottingham Drive Circle Pines, MN 55014 Mayor Osbun Miller Lee Ann The Honorable Joseph S. Sturdevant Mayor, City of Columbia Heights 4848 7th Street NE Columbia Heights, MN 55421 Mayor Sturdevant Joe The Honorable William Thompson Mayor, City of Coon Rapids 10600 Arrowhead Street N.W. Coon Rapids, MN 55433 Mayor Thompson Bill The Honorable Sandy Grams Mayor, City of East Bethel 19609 East Bethel Boulevard N.E. East Bethel, MN 55011 Mayor Grams Sandy The Honorable William J. Nee Mayor, City of Fridley 219 Logan Parkway N.E. Fridley, MN 55432 Mayor Nee Bill The Honorable Bill Nelson Mayor, City of Ham Lake 13814 Pierce Street N.E. Ham Lake, MN 55304 Mayor Nelson Bill The Honorable Bill Spoerner Mayor, City of Hilltop 4550 Central Avenue NE, Lot 1275 Hilltop, MN 55421 Mayor Spoerner Bill The Honorable Dot Heifort Mayor, City of Lexington 9272 Griggs Avenue Lexington, MN 55014 Mayor Heifort Dot The Honorable John Landers Mayor, City of Lino Lakes 7181 Sunrise Drive Lino Lakes, MN 55014 Mayor Landers John The Honorable Rick Kantorowicz Mayor, City of Oak Grove P. O. Box 235 St. Francis, MN 55070 Mayor Kantorowicz Rick The Honorable Glen Hardin Mayor, City of Ramsey 15681 Andrie Street N.W. Ramsey, MN 55303 Mayor Hardin Glen The Honorable Ray Steinke Mayor, City of St. Francis P. O. Box 635 St. Francis, MN 55070 Mayor Steinke Ray The Honorable Harley Wells Mayor,. City of Spring Lake Park 614 Maple Street N.E. Spring Lake Park, MN 55432 Mayor Wells Harley The Honorable Randy Bettinger Chairman, Bums Town Board of Supervisors 5630 Viking Boulevard N.W: , Anoka, MN 55303 Chairman Bettinger Randy The Honorable Lloyd Knudson Chairman, Columbus Town Board of Supervisors 5463 West Broadway Forest Lake, MN 55025 Chairman Knudson Lloyd The Honorable Joe Dolphy Chairman, Linwood Town Board of Supervisors 7100 Fawn Lake Drive N.E. Stacy, MN 55079 Chairman Dolphy Joe DATE: January 9, 1997 MEMORANDUM HOUSING AND REDEVELOPMENT AUTHORITY TO: William Burns, Executive Director of HRA Oro FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Authorization to Apply for 1997 HOME Funds On January 3, 1997 we were notified by Anoka County of the opportunity to apply for funding under the 1997 federal HOME Investment Partnerships (HOME) program. This is the 5th year that the County has made HOME funds available to communities. In the last 4 years Fridley has received $262,500 in HOME funding and contributed $65,187 in matching funds. The funds have been used to provide grants for home rehabilitation. So far, a total of 12 grants have been issued to Fridley homeowners. As in previous years, the funds are available on a competitive basis. Applications are due by February 3, 1997 with a final decision by the County later that month. All housing rehabilitation proposals must target a specific neighborhood. Over the last two years the Hyde Park, Plymouth and Summit Manor neighborhoods (between University and Main St., south of 694) have been targeted. Based on the number of older homes in these areas, staff recommends that these neighborhoods continue to be targeted. Recommendation Staff recommends that the HRA authorize an application to the County for $75,000 in 1997 HOME funds and also authorize a match equal to 25% of this amount not to exceed $18,750. G F/ M -97 -21 L COUNTY OF ANOKA Urban Anoka County Community Development Block Grant GOVERNMENT CENTER 2100 3rd Avenue • Anoka, Minnesota 55303 -2265 • (612) 323 -5709 January 3, 1997 Mr. Grant Fernelius, Housing Coordinator City of Fridley 6431 University Avenue N.E. Fridley, Minnesota 55432 Re: 1997 HOME Program Applications Dear Grant: Anoka County has been allocated HOME funds of $375,232 for the Fiscal Year 1997. Of this amount, $75,047 must be used by an eligible CHDO organization. You are invited to submit an application for those funds to complete an eligible housing project. All applications are due by 4:30 p.m. on February 3, 1997. A decision on funding recipients will be made in February. Please keep the following in mind as you consider applying for these funds: Eligible Projects Acquisition, rehabilitation, and construction that provides permanent or transitional owner- occupied or rental housing that serves low income households. Limited tenant assistance is also available. Any single family rehabilitation should target neighborhoods. Any requests for general city -wide housing rehabilitation will have low priority. Income Limits All households served must be at or below 80 percent of the median income in the Minneapolis -St. Paul Area adjusted for family size ($41,600 for a family of four). Matching Requirements Any applications must identify the source of a required match of 25 percent of the amount of HOME funds provided for a project. The match funds must be committed to the HOME program for an indeterminate period of time, which eliminates equity or loans as sources of match. Match requirements are addressed in detail in the attached regulations. Affirmative Action / Equal Opportunity Employer Page 2. An application package and a brochure describing the program are enclosed. Please use the enclosed format for the review committee. Additional detail can be attached. HOME regulations will be sent upon request. Please call Sandee Madigan at 323 -5708 if you have any questions concerning the application. Sincerely, Alyce A. Osborn Community Development Manager AAO:sw Enclosures cc: Tom Durand OI O W C7 a d I W 8I r U I I Y r Z r Q r 00 i r I W Q r \ I Z O r S w O LLJ d ti r r pP 00 N ti r Y O I U r W x U r a o. \ Or Q LL I I F- I z W r O M J I In w > I W r In p r W r O I In Z f+ Q \ C7 r O O .--• r \ Ln N r � E O x Y U W U O f r Q I 1 I O a Of U W p W r 00 r f i � I 2 I 1 1 I W f Q Z LLIO p Z W f r r L) ce Q W I W Q Q Ix J I S p Co u w O 0- CL d d 4- r Inr��nOOo o oN00 -o,n •O N.--00 0 P'` M N �r N 'O "t \ MCIO OOON f-00'o CO N f- N -.t 'o CO .- O M `- N .t M c- \O N N N M `- M pn p N p N J X 0 w W O C7 W Z M U f Z LLJ LU .U-r W d' J LU U W p V> W LY - w m CD In N Q Z K F J W x a JOOO WN mWZ w U a J Z J p Z W Ea U C3 `�(D:c w= 6 O C3 0 W (N (D W W Q p S zpW >> Zwip =3ne �-• W W W J p .--• W W 3 X W -cc f N�7aoD�W�a -F O W W 0 W p W f W i-- W Uti >O CC Y"'•LLQpU QZ p2dN w Jtlw'wpN wp ti W&p.C) �-NM Tln•p.N N 00, C0 CD00000 10 `O 10 10 10 10 10 10 N N N N N N N N N N N N W U f = Z H O N 2 F W LL� Q > U Z H d U :Uzi > > r -?oaw w r-ww W U N r N Z J W X W W co J ~ W 0 p .J W tL H w Q W W O Q' O .~. d' OM W Urm Q'1-tL 3 U W Z< w W Y Fr- w¢ O x a W p z ¢ J N O W O Z Q U 1UO FQ-- CO - NaJ NQOF -r S i W U W Z d W z W W .J F- • fN NF- W :z W Z C7 (nZU2C. O Q W W Z•--• UJU _j > •-.fZ �^ ti� ti� ti ti� ti ti ti 0 0 0 0 0 0 0 0 0 0 0 0 co r M Q H O W C7 W p Date: January 9, 1997 To: HRA Commission Members From: Craig Ellestad, Accountant Subject: Additional Expenses Needing Approval VENDOR First Trust National City Bank Minnesota NAHRO Minnesota NAHRO VENDOR BCL Appraisals Busch + Partners SEH File:\EXDATAW RA\MISC W DD- EXP.xis DESCRIPTION 1990 Bond Payment 1985 Bond Payment Individual Membership Agency Membership DESCRIPTION Sylvan Oaks Apt Marketing Brochure Preliminary Design - TH. 65 AMOUNT 324, 565.00 441, 034.74 15.00 90.00 -------- - - - - -- Total: $765.704.74 AMOUNT 210.65 800.00 10,200.87 Total: $11. 11