HRA 04/10/1997 - 6275HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, APRIL 10, 1997
7:30 P.M.
PUBLIC COPY
(Please return to Community Development Dept.)
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, APRIL 10, 1997 7:30 P.M.
AGENDA
LOCATION: Council Chambers (upper level), Fridley Municipal Center
CALL TO ORDER
ROLL CALL
APPROVAL OF MINUTES: March 13, 1997
CONSENT AGENDA:
Resolution Authorizing Joint Account with Center for ................. 1
Energy and the Environment to Administer Home
Improvement Loan Program
1
Acquisition of 5800 - 2 "d Street N.E. ................................ 2 -2D
Resolution Approving TIF #15, Minnesota Commercial ............... 3 -30
Railway
Approve 1997 HRA Budget ...... ............................... 4
Revenue and Expenses ......... ............................... 5 -5C
ACTION ITEMS:
Resolution Approving TIF #16, Steve Linn ......... ......... 6 -6T
INFORMATION ITEMS:
Prevailing Wage Requirement ... ............................... 7 -7D
Update on 1997 Home Remodeling Fair
(verbal update)
OTHER BUSINESS:
ADJOURNMENT
HRA RESOLUTION NO. 06 - 1997
A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN
FOR REDEVELOPMENT PROJECT NO. 1 AND THE TAX
INCREMENT FINANCING PLANS FOR TAX INCREMENT
FINANCING DISTRICTS NOS. 1, 2, 3, 6, 7, 9,
10, 11, 12, 13, 14 AND 15 TO REFLECT
INCREASED PROJECT AREA AND INCREASED PROJECT
COSTS WITHIN REDEVELOPMENT PROJECT NO. 1, AND
CREATING TAX INCREMENT FINANCING DISTRICT NO.
16 AND ADOPTING A TAX INCREMENT FINANCING
PLAN RELATING THERETO
BE IT RESOLVED by the Board of Commissioners (the "Commissioners ")
of the Housing and Redevelopment Authority in and for the City of
Fridley, Minnesota (the "Authority "), as follows:
Section 1. Recitals.
1.01. It has been proposed that the Authority modify, approve and
adopt a Modified Redevelopment Plan relating to Redevelopment
Project No. 1 to reflect increased project area and increased
project costs, pursuant to and in accordance with Minnesota
Statutes, Sections 469.001 to 469.047, inclusive, as amended and
supplemented from time to time.
1.02. It has been further proposed that the Authority modify,
approve and adopt Modified Tax Increment Financing Plans for Tax
Increment Financing Districts Nos. 1, 2, 3, 6, 7, 9, 10, 11, 12,
13, 14 and 15 (the "Existing TIF Districts ") to reflect increased
project area and increased project costs within Redevelopment
Project No. 1, pursuant to Minnesota Statutes, Section 469.174
through 469.179, inclusive, as amended and supplemented from time
to time.
1.03. It has been further proposed that the Authority approve the
creation of proposed Tax Increment Financing District No. 16 and
adopt a proposed Tax Increment Financing Plan relating thereto,
pursuant to and in accordance with Minnesota Statutes. Section
469.174 to 469.179, inclusive, as amended and supplemented from
time to time.
1.04. The Authority has investigated the facts and has caused to
be prepared with respect thereto, a Modified Redevelopment Plan
for Redevelopment Project No. 1 and Modified Tax Increment
Financing Plans for the Existing TIF Districts to reflect
increased project area and increased project costs within
Redevelopment Project No. 1 and a proposed Tax Increment Financing
Plan for proposed Tax Increment Financing District No. 16,
defining more precisely the property to be included the public
costs to be incurred, and other matters relating thereto.
Page 2 - HRA Resolution No. 06 - 1997
1.05. The Authority has performed all actions required by law to
be performed prior to the modification, approval and adoption of
the Modified Redevelopment Plan, the Modified Tax Increment
Financing Plans and the proposed Tax Increment Financing Plan.
1.06. The Authority hereby determines that it is necessary and in
the best interests of the City and the Authority at this time to
modify, approve and adopt the Modified Redevelopment Plan and the
Modified Tax Increment Financing Plans to reflect increased
project area and increased project costs within Redevelopment
Project No. 1 and to create proposed Tax Increment Financing
District No. 16 and to approve and adopt the proposed Tax
Increment Financing Plan relating thereto.
Section 2. Findings.
2.01. The Authority hereby finds that the assistance to be
provided through the adoption and implementation of the Modified
Redevelopment Plan, Modified Tax Increment Financing Plans and
proposed Tax Increment Financing Plan are necessary to assure the
development and redevelopment of Redevelopment Project No. 1.
2.02. The Authority hereby finds that the Modified Redevelopment
Plan, Modified Tax Increment Financing Plans and proposed Tax
Increment Financing Plan conform to the general plan for the
development and redevelopment of the City as a whole in that they
are consistent with the City's comprehensive plan.
2.03. The Authority finds that the Modified Redevelopment Plan,
Modified Tax Increment Financing Plans, and proposed Tax Increment
Financing Plan afford maximum opportunity consistent with the
sound needs of the City as a whole for the development and
redevelopment of Redevelopment Project No. 1 by private enterprise
and it is contemplated that the development and redevelopment
thereof will be carried out pursuant to redevelopment contracts
with private developers.
Section 3. Modification, Approval and Adoption of Modified
Redevelopment Plan.
3.01. The modifications to the Modified Redevelopment Plan for
Redevelopment Project No. 1 reflecting increased project area and
increased project costs are hereby approved and adopted by the
Commissioners of the Authority and are forwarded to the Fridley
City Council for public hearing, review and approval.
Section 4. Modification, Approval and Adoption of Modified Tax
Increment Financinu Plans.
4.01. The modifications to the Modified Tax Increment Financing
Page 3 - HRA Resolution No. 06 - 1997
Plans for the Existing TIF Districts reflecting increased project
area and increased project costs within Redevelopment Project No.
1 are hereby approved and adopted by the Commissioners of the
Authority and are forwarded to the Fridley City Council for public
hearing, review and approval.
Section 5. Creation of Tax Increment Financing District and
Adoption of Tax Increment Financing Plan.
5.01. The establishment of proposed Tax Increment Financing
District No. 16 within Redevelopment Project No. 1 and the
adoption of the proposed Tax Increment Financing Plan relating
thereto are hereby approved and adopted by the Commissioners of
the Authority and are forwarded to the Fridley City Council for
public hearing, review and approval.
Section 6. Filing of Plans.
6.01. Upon approval and adoption of the Modified Redevelopment
Plan, the Modified Tax Increment Financing Plans and the proposed
Tax Increment Financing Plan (collectively the "Plans "), the
Authority shall cause said Plans to be filed with the Commissioner
of Revenue.
PASSED AND ADOPTED BY THE HOUSING & REDEVELOPMENT AUTHORITY OF THE
CITY OF FRIDLEY THIS DAY OF , 199.
LAWRENCE R. COMMERS - CHAIRMAN
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
HRA RESOLUTION NO. 5 - 1997
A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN
FOR REDEVELOPMENT PROJECT NO. 1 AND THE TAX
INCREMENT FINANCING PLANS FOR TAX INCREMENT
FINANCING DISTRICTS NOS. 1, 2, 3, 6, 7, 9,
10, 11, 12, 13 AND 14 TO REFLECT INCREASED
PROJECT COSTS WITHIN REDEVELOPMENT PROJECT
NO. 1, AND CREATING TAX INCREMENT FINANCING
DISTRICT NO. 15 AND ADOPTING A TAX INCREMENT
FINANCING PLAN RELATING THERETO
BE IT RESOLVED by the Board of Commissioners (the "Commissioners ")
of the Housing and Redevelopment Authority in and for the City of
Fridley, Minnesota (the "Authority "), as follows:
Section 1. Recitals.
1.01. It has been proposed that the Authority modify, approve and
adopt a Modified Redevelopment Plan relating to Redevelopment
Project No. 1 to reflect increased project costs, pursuant to and
in accordance with Minnesota Statutes, Sections 469.001 to
469.047, inclusive, as amended and supplemented from time to time.
1.02. It has been further proposed that the Authority modify,
approve and adopt Modified Tax Increment Financing Plans for Tax
Increment Financing Districts Nos. 1, 2, 3, 6, 7, 9, 10, 11, 12,
13 and 14 (the "Existing TIF Districts ") to reflect increased
project costs within Redevelopment Project No. 1, pursuant to
Minnesota Statutes, Section 469.174 through 469.179, inclusive, as
amended and supplemented from time to time.
1.03. It has been further proposed that the Authority approve the
creation of proposed Tax Increment Financing District No. 15 and
adopt a proposed Tax Increment Financing Plan relating thereto,
pursuant to and in accordance with Minnesota Statutes. Section
469.174 to 469.179, inclusive, as amended and supplemented from
time to time.
1.04. The Authority has investigated the facts and has caused to
be prepared with respect thereto, a Modified Redevelopment Plan
for Redevelopment Project No. 1 and Modified Tax Increment
Financing Plans for the Existing TIF Districts to reflect
increased project costs within Redevelopment Project No. 1 and a
proposed Tax Increment Financing Plan for proposed Tax Increment
Financing District No. 15, defining more precisely the property to
be included the public costs to be incurred, and other matters
relating thereto.
Page 2 - HRA Resolution No. 05 - 1997
1.05. The Authority has performed all actions required by law to
be performed prior to the modification, approval and adoption of
the Modified Redevelopment Plan, the Modified Tax Increment
Financing Plans and the proposed Tax Increment Financing Plan.
1.06. The Authority hereby determines that it is necessary and in
the best interests of the City and the Authority at this time to
modify, approve and adopt the Modified Redevelopment Plan and the
Modified Tax Increment Financing Plans to reflect increased
project costs within Redevelopment Project No. 1 and to create
proposed Tax Increment Financing District No. 15 and to approve
and adopt the proposed Tax Increment Financing Plan relating
thereto.
Section 2. Findings.
2.01. The Authority hereby finds that the assistance to be
provided through the adoption and implementation of the Modified
Redevelopment Plan, Modified Tax Increment Financing Plans and
proposed Tax Increment Financing Plan are necessary to assure the
development and redevelopment of Redevelopment Project No. 1.
2.02. The Authority hereby finds that the Modified Redevelopment
Plan, Modified Tax Increment Financing Plans and proposed Tax
Increment Financing Plan conform to the general plan for the
development and redevelopment of the City as a whole in that they
are consistent with the City's comprehensive plan.
2.03. The Authority finds that the Modified Redevelopment Plan,
Modified Tax Increment Financing Plans, and proposed Tax Increment
Financing Plan afford maximum opportunity consistent with the
sound needs of the City as a whole for the development and
redevelopment of Redevelopment Project No. 1 by private enterprise
and it is contemplated that the development and redevelopment
thereof will be carried out pursuant to redevelopment contracts
with private developers.
Section 3. Modification, Approval and Adoption of Modified
Redevelopment Plan.
3.01. The modification to the Modified Redevelopment Plan for
Redevelopment Project No. 1 reflecting increased project costs is
hereby approved and adopted by the Commissioners of the Authority
and is forwarded to the Fridley City Council for public hearing,
review and approval.
Section 4. Modification, Approval and Adoption of Modified Tax
Increment Financing Plans.
4.01. The modifications to the Modified Tax Increment Financing
Plans for the Existing TIF Districts reflecting increased project
Page 3 - Resolution No. 05 - 1997
costs within Redevelopment Project No. 1 are hereby approved and
adopted by the Commissioners of the Authority and are forwarded to
the Fridley City Council for public hearing, review and approval.
Section 5. Creation of Tax Increment Financing District and
Adoption of Tax Increment Financing Plan.
5.01. The establishment of proposed Tax Increment Financing
District No. 15 within Redevelopment Project No. 1 and the
adoption of the proposed Tax Increment Financing Plan relating
thereto are hereby approved and adopted by the Commissioners of
the Authority and are forwarded to the Fridley City Council for
public hearing, review and approval.
Section 6. Filina of Plans.
6.01. Upon approval and adoption of the Modified Redevelopment
Plan, the Modified Tax Increment Financing Plans and the proposed
Tax Increment Financing Plan (collectively the "Plans "), the
Authority shall cause said Plans to be filed with the Commissioner
of Revenue.
PASSED AND ADOPTED BY THE HOUSING & REDEVELOPMENT AUTHORITY OF
THE CITY OF FRIDLEY THIS 10TH DAY OF APRIL, 1997.
NCE R. COMMERS - CHAIRMAN
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
HRA RESOLUTION NO. 4 - 1997
RESOLUTION DESIGNATING A SECONDARY FRIDLEY
HOUSING & REDEVELOPMENT CHECKING ACCOUNT
I, Richard D. Pribyl, do hereby certify that I am Finance
Director /Treasurer of the Fridley Housing & Redevelopment
Authority, a corporation organized under the laws of the State of
Minnesota. I further certify that at a meeting of said
corporation duly and properly called and held on the loth day of
April, 1997, the following resolution was passed; that a quorum
was present at said meeting; and that said resolution is set
forth in the minutes of the meeting and has not been rescinded or
modified.
IT IS HEREBY RESOLVED that Norwest Banks has been previously
designated as a depository for the funds of this corporation; and
IT IS FURTHER RESOLVED that checks, drafts, or other withdrawal
orders issued against the funds of a special account set up for
this corporation for the specific purpose to provide funds for
the Housing Loan Programs administered by the Center for Energy
and the Environment and shall be on deposit with said bank and
shall be signed by one of the following:
Sheldon Strom, Executive Director
Robert Henderson, Secretary /Treasurer
William W. Burns, Executive Director /City Manager
Richard D. Pribyl, Finance Director /Treasurer
Susan K. Lemieux, Assistant Finance Director
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 Norwest Banks as a designated
depository of the corporation is hereby requested, authorized,
and directed to honor checks, drafts, or other orders for the
payment of money drawn on the account of this corporation,
including those drawn to the individual order of any person or
persons whose name or names appear thereon as signer or signers
thereof, when bearing or purporting to bear the facsimile
signature of one of the following:
Sheldon Strom, Executive Director
Robert Henderson, Secretary /Treasurer
William W. Burns, Executive Director /City Manager
Richard D. Pribyl, Finance Director /Treasurer
Susan K. Lemieux, Assistant Finance Director
Page 2 - HRA Resolution 04 - 1997
and Norwest Banks shall be entitled to honor and charge this
corporation for all such checks, drafts, or other orders,
regardless of by whom or by what means the facsimile signature or
signatures thereon may have been affixed thereto, if such
facsimile signature or signatures resemble the facsimile
specimens duly certified to or filed with Norwest Banks by the
City Clerk or other officer of this corporation.
BE IT FURTHER RESOLVED that any and all resolutions heretofore
adopted by the Fridley Housing & Redevelopment Authority and
certified to as governing the operation of this corporation's
account(s) with it, be and are hereby continued in full force and
effect, except as the same may be supplemented or modified by the
foregoing part of this resolution.
BE IT FURTHER RESOLVED that all transactions, if any relating to
deposits, withdrawals, 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.
I further certify that the Fridley Housing & Redevelopment
Authority has, and at the time of adoption of said resolution
had, full power and lawful authority to adopt the foregoing
resolution and to confer the powers therein granted to the
persons named who have full power and lawful authority to
exercise the same.
PASSED AND ADOPTED BY THE HOUSING & REDEVELOPMENT AUTHORITY OF
THE CITY OF FRIDLEY THIS 10TH DAY OF APRIL, 1997.
LAWRENCE R. COMMERS - CHAIRMAN
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING
MARCH 13, 1997
CALL TO ORDER:
Chairperson Commers called the March 13, 1997, Housing and
Redevelopment Authority meeting to order at 7:38 p.m.
ROLL CALL:
Members Present: Larry Commers, Virginia Schnabel, John Meyer
Members Absent: Jim McFarland, Duane Prairie
Others Present: Barbara Dacy, Community Development Director
Jim Casserly, Financial Consultant
Craig Ellestad, Accountant
Margaret Metzdorff, 440.0 Nokomis Avenue,
Minneapolis, MN
Gary Bidne, Noah's Ark Development
APPROVAL OF FEBRUARY 13, 1997, HOUSING AND REDEVELOPMENT AUTHORITY
MEETING:
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the
February 13, 1997, Housing and Redevelopment Authority minutes as
written.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COWdERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
CONSENT AGENDA:
1. REVENUE AND EXPENSES
Mr. Ellestad distributed copies of additional expenses needing
approval as outlined in his memo dated March 13, 1997.
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the
Consent Agenda and additional expenses as outlined in Mr.
Ellestad's memo dated March 13, 1997.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
ACTION ITEMS•
2. CONSIDER APPOINTMENT FOR REMODELING ADVISOR
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 13, 1997 PAGE 2
Ms. Dacy stated staff is recommending Ms. Margaret Metzdorff as
the Remodeling Advisor. She has six years experience in the
housing program for Minneapolis NRP. She has worked in several
neighborhoods in Minneapolis and administered historic
preservation and exterior improvement and abatement programs for
housing for these areas. She has also assisted homeowners in
evaluating a variety of improvements to their homes, conducted
property inspections, work write ups, construction specifications
and bid documentation. Over the course of her experience, she has
overseen a number of rehabilitation projects, has conducted
interim final inspections and monitored and authorized payment to
contractors. She has computer -aided design experience. She has a
Bachelor of Science in Housing from the University of Minnesota.
Ms. Dacy stated a copy of the contract was included in the agenda
packet. Staff has also distributed a copy of the final employment
contract. The contract is within the estimated budget .for this
year. Staff recommends approval of the employment contract and
appointment of Ms. Metzdorff to the position, subject to the
approval of the service agreement with the City of Blaine EDA.
Ms. Dacy stated the City of Blaine is willing to reimburse the HRA
for 450 of the Remodeling Advisor's position. Ms. Metzdorff will
be performing services for both the City of Fridley and the City
of Blaine.
Ms. Metzdorff stated, in addition to her work with the
neighborhoods in Minneapolis, she also did a nine -month internship
with the Dakota County HRA so she has experience in an HRA setting
as well.
Mr. Commers asked if the contract was agreeable.
Ms. Metzdorff stated the contract was agreeable.
Ms. Dacy stated Ms. Metzdorff. would start work on March 31. Her
first task is the Home Remodeling Fair on April 5.
MOTION by Mr. Meyer, seconded'by Ms. Schnabel, to approve the
Employment Contract for Remodeling Advisor, subject to approval of
the service agreement with the City of Blaine EDA.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
3. CONSIDER SERVICE AGREEMENT WITH THE CITY OF BLAINE EDA FOR
REMODELING ADVISOR
Ms. Dacy stated she spoke with her counterpart today at the City
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 13, 1997 PAGE 3
of Blaine. The Blaine EDA meeting is scheduled for March 20. The
draft agreement handed out this evening is the agreed upon draft.
There were two minor changes to the agreement. The first change
was to item #2, Employing Agency and Work Assignments, where we
made it clear that the Remodeling Advisor is an employee of the
Fridley HRA. She and Mr. Fernelius will be providing all of the
specific work direction including performance evaluations. The
second change was in item 3 #, Time Allocation, where a sentence
was added to assure the City of Blaine that vacation time would
not seriously affect the amount of time that would be provided at
Blaine, and to work cooperatively so that the position is shared
based on 24 hours in Fridley and 16 hours in Blaine.
Ms. Dacy stated staff recommends approval of the service agreement
as amended and presented.
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the
Agreement for Home Remodeling Advisor Services.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
4. CONSIDER RESOLUTION FOR EXECUTION OF NOAH'S ARK DEVELOPMENT
rnNTRArT
Ms. Dacy stated the parcel on which Noah's Ark is proposing to
build their project is located south of Wal -Mart at the northwest
corner of 83rd Avenue and University. As the memo outlines,
Noah's Ark is requesting pay -as- you -go tax increment financing
from the HRA and is concurrently requesting a bond issue from the
City Council. The project would be 'a four -story building with 108
units. The total project cost is $9,600,000. According to the
bond requirements, 40% of the units must be rented to households
with incomes under 60% of metro area median income. It will
provide housing for lower income seniors as well as moderate
income seniors. The affordable households will be taxed at a
lower tax rate of 2.3% and the remaining 60% of the units at 3.4 %.
About two - thirds of the 108 units will be one bedroom of a variety
of sizes and the remaining 36 will be two bedroom.
Ms. Dacy stated the developer has obtained variance approvals and
wetland approvals. We had to do a minor zoning text amendment to
adjust the parking ratios for senior housing. The bond issue is
to be considered by the City Council in April. As far as the pay -
as- you -go financing, there is enough time in the existing TIF
district to provide the requested amount of increment. The.pay-
as- you -go approach puts the burden of risk on the developer. The
project has to be built first, then the HRA issues a note and uses
the tax increment to reimburse the developer. The increment to be
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 13, 1997 PAGE 4
used would be the increment that is to be created from this site
only.
Ms. Dacy stated, about six months ago, Mr. Commers asked staff to
do some history checking about our discussion regarding senior
housing in 1989. Staff did go back and verified that this project
is consistent with the thoughts that the City Council and HRA
discussed at that time. Staff were also asked to check with Mr.
Stutz from Rottlund Homes to see if this would be competing with
the Christenson Crossing development. His answer was no. Both
projects are aimed at different types of markets and serve to
complement one another.
Ms. Dacy stated staff is recommending that the HRA approve the
resolution to authorize the execution of a development contract
with Noah's Ark of Minnesota, Inc., subject to the approval of the
housing bond issue.
Mr. Bidne stated, on behalf of Noah's Ark Senior Housing, Inc., he
is delighted to be here. If you have had an opportunity to drive
further on Highway 10, you will notice a program currently under
construction which is 111 units of senior housing for Noah's Ark.
Noah's Ark is an interdenominational not - for - profit organization
seeking to assist in providing and reaching.out to this evolving,
growing need for senior housing where seniors are seeking to have
building - specific housing that is responding t.o their needs. They
do, a number of things in the program that respect the aging
process in terms of providing a community. He thought that was
something they could do here with Waters Crest. They are going to
be in a position to have an abundance of common spaces so they are
attracting the seniors to come outside of their apartment area.
The apartments are fully appointed. They will have upon entering
the building a parlor, a foyer, a large multi - purpose dining room,
a private dining room area, a community kitchen, and on the second
floor via a grand staircase another large community area which
overlooks a two -story solarium in the northwest corner overlooking
Springbrook Nature Center. The building will have off street
parking and residents will have underground parking with a car
wash bay as well as the opportunity to go up the elevators which
are centrally located.
Mr. Bidne stated, prior to commencement of this program, Noah's
Ark secured additional market study research from the Maxwell
Research Group. They want to be good stewards of resources.
There is no need to construct a building unless they know that
individuals are going to occupy it and that it is going-to-be 1000
occupied. In Spring Lake Park, the market study there indicated
the demographics as they looked at seniors aging in.place by and
large those 65 years of age and above are very strong in which
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 13, 1997 PAGE 5
both the Spring Lake Park and Fridley programs will not begin to
fulfill that need: In Spring Lake Park, they have well over 30
units pre- leased. During the spring months, they will start
growing by quantum leaps of over 15 to 20 units being pre- leased
per month because people are looking at transitioning. As the
president of Presbyterian Homes stated at the groundbreaking, he
hoped that those of you who have loved ones sign up because we end
up with long waiting lists. Once individuals can see how spacious
the apartments are and how spacious the commons are, that is going
to be a very marketable interest for those individuals.
Mr. Bidne stated in terms of rents they have had to factor their
rents out an additional year. They are confident they will be
exceeding the minimum requirements of 400 of the occupants being
at 600 of median income. In their previous programs, they have
found that this number has actually exceeded 70% in one program
and. in another program exceeded 85% of the occupants meeting the
financial requirements. They have many seniors with modest
incomes, are no longer accumulating resources and are prepared to
guide more of those resources toward their dwelling unit and the
accouterments of security, safety, someone to check on them daily,
etc.
Mr. Bidne stated they are designing to own this building in
perpetuity, to utilize maintenance free materials on the exterior
and high quality windows, so that as individuals can age in place
and Noah's Ark will have more resources to guide toward programs
rather than building and exterior. This is a bottom line program
of Noah's Ark. He is anticipating that the rents when the
building opens in the summer of 1998 will stay at the same level
for 1998 and most of 1999. Then they factored a 2.5% to 3%
increase on an annual basis. They try to monitor that component
in order to keep their program as affordable as they can for all
the occupants. 'From that vantage point, they feel they are
providing spacious apartments for individuals, but it also needs
to.be cost effective. With the assistance of the pay -as- you -go
financing, that will enable Noah's Ark to accomplish this program
and to work with you as this unfolds.
Ms. Schnabel asked if there would be rental units on all of the
floors.
Mr. Bidne stated.yes. Apartments will be located on all four
floors. They have individuals who prefer to be on the first
floor, certainly for those that require handicap accessible
apartments. They also have individuals who prefer other floors
just as some like to have west or south exposures.
Ms. Schnabel asked if there were specific handicap designed
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 13, 1997 PAGE 6
apartments available.
Mr. Bidne stated all apartments are being designed to meet the ADA
requirements. All bathrooms have the adequate circumference for a
wheelchair. They will have a minimum of 5% and, if they see
interest is greater, early on they can make the adjustments of
lowering the cabinetry and doing additional things to assure they
are able to be responsive to the needs of seniors that need the
handicap accessible apartments. In addition to bathrooms, the
kitchens have custom ovens and ranges with dials installed on the
front, and all outlets are lower. The structure is designed so
that, if you are sitting in a wheelchair or on a sofa, you can
look out because the windows are two feet off the floor. The
windows are large to allow a lot of natural light into the
apartments. They are sensitive to the needs of the residents
because they want to.have the flexibility. They need a building
that is designed to age as gracefully as the residents. They have
gone to extremes to assure that they have buildings that are going
to be as marketable today as 20 years from now.
Ms. Schnabel asked if there would be a staff person on duty 24
hours a day or a resident manager.
Mr. Bidne stated there is a resident manager which is 24 hours and
also full time staff coming in during business hours. They will
also be contracting with nearby clinics for medical health checks.
Individuals will come in usually once per month for blood pressure
checks, etc. They bring a lot of programmatic functions into the
building and also have areas designed in the building for that
purpose.
Mr. Commers asked if the anticipated leasing rates were on the
second page of the memo.
Mr. Casserly stated the 1998 lease rates are those that are
projected. Those follow from the 1997 rates that they are using
in Spring Lake Park. The 1998 rates are adjusted at about 30.
Mr. Bidne stated one of the things they cannot control is interest
rates. If they found interest declining, there are two
parallelisms. One is that, given construction costs, for every
$100,000 they save in construction, they are able to adjust their
rents downward about $15 per month. If the interest rates make a
favorable adjustment, they can adjust rents downward. They are
very sensitive to how they can make the program affordable for
individuals. They try to have a litany of floor plans to suit
different incomes and different needs. Mr. Bidne provided a copy
of the roster of the board of directors and an organizational
chart of some of the other programs that Noah's Ark is involved
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 13, 1997 PAGE 7
with. Noah's Ark is concerned about being conscientious.of
keeping the program affordably priced.
Mr. Commers asked if they had any currently operating projects in
the Twin City area.
Mr. Bidne stated they served as a consultant for Epiphany Pines in
Coon Rapids and Mayfield Presbyterian Homes in Little Canada.
They have been the developer of record and have orchestrated the
program, but Noah's Ark is the first where they are more closely
the developer and that first project is now under construction in
Spring Lake Park.
Ms. Schnabel stated this project seems to meet our test of four
projects. If it were not to proceed, the rents would not be as
low as they are projected without our assistance.
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve a
Resolution Authorizing Execution and Delivery of a Contract for
Private Redevelopment By and Between the Housing and Redevelopment
Authority In and For the City of Fridley and Noah's Ark of
Minnesota, Inc.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COI-MRS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
5. CONSIDER CONTRACT FOR PREPARATION OF FINAL PLANS AND
SPECIFICATIONS FOR LAKE POINTE INTERSECTION
Mr. Commers stated he understands that one additional item that
may arise is the lighting that would be associated with this
intersection.
Mr. Dacy stated this was correct.
Mr. Commers asked if at this time the City had anything firm with
the State of Minnesota in terms of reimbursement.
Ms. Dacy stated no. Mr. Flora is trying to work out the details.
Staff's goal is to keep the costs at $380,000.
Ms. Schnabel asked when construction would start.
Ms. Dacy stated construction is planned to begin in spring of
1998. The project would be let for bids in December, 1997, with
construction starting in April, 1998. Ms. Dacy reviewed the plans
and changes proposed.
Mr. Commers asked what the status was of the properties north of
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 13, 1997 PAGE 8
the intersection where old Central and Hackman come together.
Ms. Dacy stated there will be no changes. The HRA retained a
triangular piece of property and no other acquisitions are
planned. The HRA acquired some property on the west side a number
of years ago so there is no acquisition planned to the west. The
Planning Commission conducted an informational meeting regarding
this proposal on February 19 which was well attended.
MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the
Agreement for Engineering Services between the HRA and Short
Elliott Hendrickson, Inc., for Trunk Highway 65 from Trunk Highway
694 to Lake Pointe Drive in Anoka County, Minnesota.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COM MRS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
INFORMATION ITEMS:
6. UPDATE ON TIF REQUEST FOR REDEVELOPMENT ON 57TH AVENUE BY
STEVE LINN
Ms. Dacy stated she and Mr. Casserly. have evaluated the
information submitted. They do not have a recommendation at this
time, but anticipate preparing a recommendation for the April
agenda. Mr. Linn has filed an application and a neighborhood
meeting will be held next Tuesday. The Appeals Commission will
hear a request on April 9. The next HRA meeting is April 10.
Mr. Commers asked what the nature was of the assistance expected
to be requested.
Ms. Dacy stated the application specifies an amount of $200,000.
The estimated project cost is approximately $1.5 million.
However, staff is reviewing that. There may be additional costs
Mr. Linn has not included.
Mr. Commers asked if Mr. Linn understands that we have not done
these types of projects before.
Ms. Dacy stated this is truly a redevelopment project in that he
is doing acquisition and parcel assembly. At the northeast
quadrant at University and Mississippi, a similar approach was
undertaken by the developer where the person tried to acquire
parcels in order to tie them together into one site and the HRA
evaluated an assistance package. If a district is created, it
would be a true redevelopment district.
Mr. Casserly stated, in this instance, it is not often that you
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 13, 1997 PAGE 9
see redevelopment projects that are developer initiated. They
were not sure that this one was going to work but they are
approaching this as a redevelopment project. Classically, a
redevelopment project is one where the improvements are on the
site which create additional costs in the acquisition but do not
add anything to the value. That is what they are trying to
examine in this particular case. They are trying to figure out
what the site is worth free of the impediments that currently
exist.
Mr. Commers asked if this was going to be a tax increment request.
If so, what is the tax increment anticipated to be generated.
Mr. Dacy stated the total for the life of the district would be
approximately $225,000 in present value dollars.
Mr. Casserly stated it is not a great amount because the problem
is that structures are already there which need to be taken down.
This fits into very classic redevelopment.
Mr. Commers stated, if the project is a pay -as- you -go, what does
that mean under our guidelines.
Mr. Casserly stated it does not fit the guidelines. This is a
redevelopment project. The guidelines deal with assistance for
economic development.
Mr. Casserly stated they have tried to distinguish between what
were redevelopment costs and what were development costs.
Mr. Meyer stated they talked last time about traffic on 57th. Are
you satisfied that this will not add to that traffic?
Ms. Dacy stated, with the City of Fridley as the client, they
hired BRW to evaluate this request in terms of traffic. The
developer and Holiday Plus are going to reimburse the City for
those costs. The strip mall being proposed is 8,000 square feet,
which is small for a center. At peak times, they estimate 20 car
trips in and 20 trips out which is a small use. A smaller amount
is anticipated for the service center. From University Avenue to
the main driveway to Holiday Plus, there are 16,000 vehicles per
day. From that main driveway west to Main Street, it drops to
8,000 vehicles per day. The amount of traffic generated by this
development will not significantly affect the traffic flows.
However, the City Council wants staff to evaluate some type of
construction improvement on 57th Avenue because there are so many
left turn movements and so many driveways. Aside from this
project, the City Council will evaluate pulling together the
owners for agreement on a construction project. One thing they
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 13, 1997 PAGE 10
talked about is a central left -hand turn lane down 57th.
7. POTENTIAL AMENDMENT TO REDEVELOPMENT PROJECT AREA
Ms. Dacy stated the City Council initiated a moratorium as a
result of warehouse and distribution facility development in the
city in the past 24 months. We have a lot of warehouse facilities
in industfial areas. The purpose of the moratorium was to
evaluate what was left for vacant land and to determine if we
should restrict zoning to prohibit those types of uses. The City
Council was very concerned about the truck traffic and the
pollution into the neighborhoods. Staff were to evaluate the
impact on residential areas. The analysis shows the city broken
into three areas, evaluated what is existing for warehouse
distribution, and analyzed what is vacant. Staff determined that,
of the 89 acres that remain vacant, some of those sites are across
from residential areas.
Ms. Dacy stated the Planning Commission at their next meeting is
to hear an ordinance amendment which, if you have an industrial
lot on a corner, loading docks can no longer face toward the
right -of -way. That eliminates the visual impact and reduces the
number of docks. Second, the Planning Commission will evaluate a
fourth industrial zoning area, M -4 Manufacturing Only, which will
essentially permit manufacturing uses only and will prohibit
warehouse distribution and trucking terminals. Of those 89 acres,
there are 6 or 7 sites that we are suggesting be zoned as M -4. If
approved by the City Council and the Planning Commission, staff
would like to suggest to the HRA that you add these sites to the
redevelopment project area. This does not bind the HRA but allows
the HRA to provide a loan or perhaps establish a district which
meets State statutes. Staff saw that as an economic development
tool and the HRA will administratively see some of the
requirements. No action is proposed at this time.
Ms. Dacy stated at the April or May agenda, staff will update the
HRA as to how the City Council and Planning Commission acted
toward that proposal. The moratorium ends at the end of May and
staff are committed to try to resolve these issues by that time so
construction can continue.
Mr. Commers asked how this would affect potential projects such as
the warehouse for the railway.
Ms. Dacy stated that project would not be affected because is has
only one dock. The moratorium is for warehouse facilities with 10
or more docks.
Ms. Schnabel stated there was no residential area across from that
It
HOUSING & REDEVELOPMENT AUTHORITY MEETING MARCH 13, 1997 PAGE 11
project.
Ms. Dacy stated residential is nearby. If there is a significant
amount of warehouse distribution within a short distance, they put
it in the manufacturing only category. The Target facility has
nearly one million square feet.
8. FRIDLEY EXECUTIVE CENTER UPDATE
Mr. Commers stated this is an ongoing analysis of the site. When
this is complete, please bring it to the HRA's attention.
OTHER BUSINESS:
9. COMMUNITY DEVELOPMENT NEWSLETTER
Mr. Commers stated the newsletter contains an announcement about
economic development and also the matter on 57th Avenue that is
pending before the City.
Ms. Dacy stated the newsletter is being distributed to all the
commissions.
ADJOURNMENT:
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to adjourn the
meeting.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED AND THE MARCH 13, 1997, HOUSING AND
REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 8:33 P.M.
Respectfully submitted,
au 'q
Lavonn Cooper
Recording Secretary
S I G N— I N S H E E T
HOUSING AND REDEVELOPMENT AUTHORITY MEETING, March 13, 1997
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MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: April 4, 1997
TO: William Burns, Executive Director of HRA Adov
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Consider Resolution Authorizing Joint Account with Center
for Energy and Environment (CEE)
At their February 13, 1997 meeting, the HRA approved a Loan Origination Agreement
with CEE. The agreement covers administration of the HRA's housing rehabilitation
loan programs.
Under the agreement, CEE and HRA were authorized to open a joint checking account
to escrow the proceeds of loans issued to homeowners. As the loans are closed CEE
transfers the loan files to the HRA which in turn deposits funds into the joint account.
Upon completion of the improvements CEE inspects the property, obtains approval
from the homeowner, verifies that permits have been obtained and work inspected and
then releases payment to the contractors.
Rick Pribyl, Finance Director has indicated that the HRA must approve a separate
resolution which designates the financial institution and official signers on the account.
A draft resolution will be prepared and distributed at the HRA meeting on April 10''.
Recommendation
Staff recommends that the HRA approve the resolution authorizing a joint checking
account with the Center for Energy and Environment. The resolution will be available at
Thursday evening's meeting.
GFJ
M -97 -161
W164
TO: WILLIAM W. BURNS, CITY MANAGER
FROM. • RICHARD D. PRIB YL, FINANCE DIRECTOR
SUBJECT.' SPECIAL HRA BANKACCOUNT FOR RELEASING FUNDS FOR
HOUSING PROGRAMS
DATE: MARCH 28, 1997
You have received previous communications from Grant Fornelius regarding a change in
the method for providing loan proceeds for the HRA housing loan programs. I have
received a request from Grant to set up a special checking account at Norwest Bank to
handle the disbursement of funds by the Center for Energy and Environment(CEE) for the
housing loans.
As you recall the new procedure will add additional control over the funds provided to
homeowners to insure that all funds disbursed as loan proceeds are utilized in the
remodeling project.
We will be working with all parties involved in this activity to insure the proper internal
control of the funds that will be involved in this account, and under the control of CEE.
RESOLUTION NO. -1997
RESOLUTION DESIGNATING A SECONDARY FRIDLEY
HOUSING REDEVELOPMENT CHECKING ACCOUNT
I, Richard D. Pribyl, do hereby certify that I am Finance Director - Treasurer of the Fridley Housing
Redevelopment Authority, a corporation organized under the laws of the State of Minnesota. I
further certify that at a meeting of said corporation duly and properly called and held on the 10th
day of April, 1997, the following resolution was passed; that a quorum was present at said meeting;
and that said resolution is set forth in the minutes of meeting and has not been rescinded or
modified.
IT IS HEREBY RESOLVED, that Norwest Banks is has been previously designated as a depository
for the funds of this corporation and,
IT IS FURTHER RESOLVED, that checks, drafts or other withdrawal orders issued against the
funds of a special account set up for this corporation for the specific purpose to provide funds for
the Housing Loan Programs administered by the Center for Energy and Enivronment and shall be
on deposit with said bank and shall be signed by one of the following:
Sheldon Strom, Executive Director
Robert Henderson, Secretary[Treasurer
William W. Bums, City Manager
Richard D. Pribyl, Finance Director/Treasurer
Susan K. Lemieux, Assistant Finance Director
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 Norwest Banks as a designated depository of the corporation is
hereby requested, authorized and directed to honor checks, drafts or other orders for the payment
of money drawn on the account of this corporation, including those drawn to the individual order of
any person or persons whose name or names appear thereon as signer or signers thereof, when
bearing or purporting to bear the facsimile signature of one of the following:
Sheldon Strom, Executive Director
Robert Henderson, Secretary/Treasurer
William W. Bums, City Manager
Richard D. Pribyl, Finance Director/Treasurer
Susan K. Lemieux, Assistant Finance Director
and Norwest Banks shall be entitled to honor and to charge this corporation for all such checks,
drafts or other orders, regardless of by whom or by what means the facsimile signature or
signatures thereon may have been affixed thereto, if such facsimile signature or signatures
resemble the facsimile specimens duly certified to or filed with Norwest Banks by the City Clerk or
other officer of his corporation.
BE IT FURTHER RESOLVED, that any and all resolutions heretofore adopted by the Fridley
Housing Redevelopment Authority and certified to as governing the operation of this corporation's
account(s) with it be and are hereby continued in full force and effect, except as the same may be
supplemented or modified by the foregoing part of this resolution.
BE IT FURTHER RESOLVED, that all transactions, if any relating to deposits, withdrawals, 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.
I further certify that the Fridley Housing and Redevelopment Authority has, and at the time of
adoption of said resolution had, full power and lawful authority to adopt the foregoing resolution and
to confer the powers therein granted to the persons named who have full power and lawful
authority to exercise the same.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND OR
THE CITY OF FRIDLEY THIS le DAY OF APRIL, 1997.
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
LAWRENCE R. COMMERS - CHAIRMAN
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: April 4, 1997
TO: William Burns, Executive Director of HRA 444
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Consider Acquisition of 5800 2 "d St. NE
This is a single family home located on the comer of 2' St. and 581 Avenue in the
Hyde Park neighborhood. The property was identified as a potential acquisition site
during a windshield survey last Spring. The house was built in 1948 and has 2
bedrooms, a living room, kitchen, bathroom and a detached garage. The house has
744 total square feet of living area. The lot is 80'x 130'
for a total of 10,400 square feet which meets the minimum lot area requirements.
During a recent inspection the following conditions were noted:
1. The basement has a dirt floor and a portion of the foundation is caving in
due to improper footings. In addition, several beams are sagging due to no
footings for the posts., Many of the floor joists have been spliced together
without columns to support the loads.
2. The plumbing and electrical systems are severely inadequate. For
example, the water supply piping consists of a combination of plastic and copper
and leaks. are visible in numerous spots. The waste lines consist of plastic PVC
and cast iron and are improperly connected. The electrical system has open
wiring in the basement and first floor.
3. The furnace and water heater vent into an asbestos -lined chimney which
appears to be cracking.
4. The interior shows signs of water damage from leaks in the roof. The
6
Memo Regarding 5800 - 2 11 St. NE
April 4, 1997
Page 2
homeowner has tried to make several repairs, but the stains are still
evident.
5. The kitchen and bathroom are severely deteriorated. Cabinets are falling
apart, drawer fronts are missing and the countertop is damaged. The
shower stall is disintegrating and does not have a cleanable surface.
6. The exterior soffit and fascia are rotting from deterioration. The roof
shows signs of sagging at the mid -span due to a lack of proper footings
in the basement.
Based on this information it is clear that a substantial amount of rehabilitation would be
required. The property qualifies under the Housing Replacement Program because
the cost to improve the property exceeds 15% of the value of the structure.
The property is appraised for tax purposes at $57,239. A separate appraisal was
prepared by Richard Erickson, Appraisal Engineering Bureau in July of 1996. At that
time the property was appraised at $57,000. The owner has agreed to sell the
property for $54,900 and waive any relocation benefits.
Recommendation
Staff recommends that the HRA approve the purchase of 5800 2' St. NE from Carol
Hooser for $54,900 and authorize the Executive Director to execute the necessary
documents to complete the purchase.
GF/
M -97 -160
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MEMORANDUM
HOUSING
REDEVELOPMENT
AUTHORITY
DATE: April 4, 1997 n ,
TO: William Burns, Executive Director of HRA�w
FROM: Barbara Dacy, Community Development Director
SUBJECT: Resolution Modifying Redevelopment Project Area .No. 1
and Creating Tax Increment Financing District No. 15,
Minnesota Commercial Railway Company
Background
The HRA at its February 13, 1997 meeting authorized staff to initiate the process to
create a tax increment financing district and a development contract for the construction
of a 57,890 square foot facility for Minnesota Commercial Railway Company (MCRC).
The project will house a subsidiary of the railway company, known as Commercial
Transload of Minnesota (CTM). CTM provides "single bill of lading" just in time service
for steel processors. Rolled steel is to be received from a rail spur on the Minnesota
Commercial Railway line which runs easttwest through Fridley, just north of 71'd Avenue
(Willamette has a spur from this rail line). The rail spur would be extended along the.
north side of 71"1 Avenue and would be extended directly into the CTM building. The
steel will be transferred from the rail cars to semi trucks who in turn deliver the steel to a
variety of steel processors in the metro area.
Economic Development District
The proposed district to be created is an economic development district. The proposed
site consists of two parcels and will be the only parcels in the district. The district will
expire in 2007 and is estimated to generate approximately $364,552 of tax increment.
The project cost is $2,525,474, exclusive of a $200,000 crane.and $160,000 to extend
the rail spur. The requested amount of assistance, $250,000, is to be provided. through
a grant ($125,000) and a ten year loan ($125,000). The assistance is to be used for
0
TIF #15
April 4, 1997
Page 2
removing poor soil, site clearance, and building substantial foundations to support the
crane to transfer the steel. The developer will be required to obtain a certificate of
completion prior to delivery of the assistance. The development contract will also
require that the developer agree to pay a minimum amount of taxes ($92,000).
Because the site will be valued based on State Statute regarding railway facilities,
payment of a minimum amount of taxes will be proposed in the development contract
as opposed to a minimum assessment agreement. Four to six employees will be hired
their first year.
The County and School District were properly notified, and no comments have been
received as of this date. The City Council will be conducting a public hearing at its April
14, 1997 meeting.
Recommendation
Staff recommends that the HRA approve the attached resolution authorizing
modification of the redevelopment project area and creation of Tax Increment Financing
District No. 15. The development contract will be submitted for HRA approval at its May
9, 1997 meeting.
BD /dw
M -97 -167
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RESOLUTION NO.
A RESOLUTION MODIFYING.THE REDEVELOPMENT PLAN
FOR REDEVELOPMENT PROJECT NO. 1 AND THE TAX
INCREMENT FINANCING PLANS FOR TAX INCREMENT
FINANCING DISTRICTS NOS. 1, 2, 3, 6, 7, 9, 10,
11, 12, 13 AND 14 TO REFLECT INCREASED PROJECT
COSTS WITHIN REDEVELOPMENT PROJECT NO. 1, AND
CREATING TAX INCREMENT FINANCING DISTRICT NO.
15 AND ADOPTING A TAX INCREMENT FINANCING PLAN
RELATING THERETO
BE IT RESOLVED by the Board of Commissioners (the "Commissioners ")
of the Housing and Redevelopment Authority in and for the City of
Fridley, Minnesota (the "Authority "), as follows:
Section 1. Recitals.
1.01. It has been proposed that the Authority.modify, approve and
adopt a Modified Redevelopment Plan relating to Redevelopment
Project No. 1 to reflect increased project costs, pursuant to and
in accordance with Minnesota Statutes, Sections 469.001 to 469.047,
inclusive, as amended and supplemented from time to time.
1.02. It has been further proposed that the Authority modify,
approve and adopt Modified Tax Increment Financing P1anb for Tax
Increment Financing Districts Nos. 1, 2, 3, 6, 7, 9, 10, 11, 12, 13
and 14 (the "Existing TIF Districts ") to reflect increased project
costs within Redevelopment Project No. 1, pursuant to Minnesota
Statutes, Section 469.174 through 469.179, inclusive, as amended
and supplemented from time to time.
1.03. It has been further proposed that the Authority approve the
creation of proposed Tax Increment Financing District No. 15 and
adopt a proposed Tax Increment Financing Plan relating thereto,
pursuant to and in accordance with Minnesota Statutes. Section
469.174 to 469.179, inclusive, as amended and supplemented from
time to time.
1.04. The. Authority has investigated the facts and has caused to
be prepared with respect thereto, a Modified Redevelopment Plan for
Redevelopment Project No. 1 and Modified Tax Increment Financing
Plans for the Existing TIF Districts to reflect increased project
costs within Redevelopment Project No. 1 and a proposed Tax
Increment Financing Plan for proposed Tax Increment Financing
District No. 15, defining more precisely the property to be
included the public costs to.be incurred, and other matters
relating thereto.
3C
Page 2 - Resolution No.
1.05. The Authority has performed all actions required by law to
be performed prior to the modification, approval and adoption of
the Modified Redevelopment Plan, the Modified Tax Increment
Financing Plans and the proposed Tax Increment Financing Plan.
1.06. The Authority hereby determines that it is necessary and in
the best interests of the City and the Authority at this time to
modify, approve and adopt the Modified Redevelopment Plan and the
Modified Tax Increment Financing Plans to reflect increased project
costs within Redevelopment Project No. 1 and to create proposed Tax
Increment Financing District No. 15 and to approve and adopt the
proposed Tax Increment Financing Plan relating thereto.
Section 2. Findings.
2.01. The Authority hereby finds that the assistance to, be
provided through the adoption and implementation of the Modified
Redevelopment Plan, Modified Tax Increment Financing Plans and
proposed Tax Increment Financing Plan are necessary to assure the
development and redevelopment of Redevelopment Project No. 1.
2.02. The Authority.hereby finds that the Modified-.Redevelopment
Plan, Modified Tax Increment Financing Plans and proposed Tax
Increment Financing Plan conform to the general plan for the
development and redevelopment of the City as a whole in that they
are consistent with the City's comprehensive plan.
2.03. The Authority finds that the Modified Redevelopment Plan,
Modified Tax Increment Financing Plans, and proposed Tax Increment
Financing Plan afford maximum opportunity consistent with the sound
needs of the City as a whole for the development and redevelopment
of Redevelopment Project No. 1 by private enterprise and it is
contemplated that the development and redevelopment thereof will be
carried out pursuant to redevelopment contracts -with private
developers.
Section 3. Modification, Approval and Adoption of Modified
Redevelopment Plan.
3.01. The modification to the Modified Redevelopment Plan for
Redevelopment Project No. 1-reflecting increased project costs is
hereby approved and adopted by the Commissioners of the Authority
and is forwarded to the Fridley City Council for public hearing,
review and approval.
Section 4. Modification. Approval and Adoption of Modified Tax
Increment Financing Plans.
4.01. The modifications to the Modified Tax.Increment Financing
Plans for the Existing TIF Districts reflecting increased project
nj_J
Page 3 - Resolution No.
costs within Redevelopment Project No. 1 are hereby approved and
adopted by the Commissioners of the Authority and are forwarded to
the Fridley City Council for public hearing, review and approval.
Section 5. Creation of Tax Increment Financing District and
Adoption of Tax Increment Financing Plan.
5.01. The establishment of proposed Tax Increment Financing
District No. 15 within Redevelopment Project No. 1 and the adoption
of the proposed Tax Increment Financing Plan relating thereto are
hereby approved and adopted by the Commissioners of the Authority
and are forwarded to the Fridley City Council for public hearing,
review and approval.
Section 6. Filing of Plans.
6.01. Upon approval and adoption of the Modified Redevelopment
Plan, the Modified Tax Increment Financing Plans and the proposed
Tax Increment Financing Plan (collectively the "Plans ") , the
Authority shall cause said Plans to be filed with the Commissioner
of Revenue.
PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF FRIDLEY THIS DAY OF ; 199.
LAWRENCE R. COMMERS - CHAIRPERSON
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
CERTIFICATION
I, William W. Burns, Executive Director of the Housing and
Redevelopment Authority in and for the City of Fridley, County of
Anoka, Minnesota, hereby certify that the foregoing is a true and
correct copy of Resolution No. passed by the Authority
on the day of 199 .
\FRIDLEY \TIF \HRA- RR.RES WILLIAM W. BURNS - EXECUTIVE DIRECTOR
3EI
SECTION XVI
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 15
(MINNESOTA COMMERCIAL RAILWAY CO. PROJECT)
Subsection 16.1. Statement of Objectives. See Section I,
Subsection 1.5. Statement of Objectives.
Subsection 16.2. Modified Redevelopment Plan. See Section
I, Subsections 1.2. through 1.15.
Subsection 16.3. Parcels to be Included. The boundaries of
Tax Increment Financing District No. 15 are described on the
attached Exhibit XVI -A and illustrated on Exhibit XVI -B.
Subsection 16.4. Parcels in Acquisition. The Authority may
publicly acquire and reconvey any or all of the parcels in Tax
Increment Financing District No..15 identified on the attached
Exhibit XVI -A.
The following are conditions under which properties not
designated to be acquired may be acquired at a future date
(1) The City may acquire property by gift, dedication,
condemnation or direct purchase from willing sellers in order to
achieve the objectives of the Tax Increment Financing Plan; and
(2) Such acquisition will be undertaken only when there is
assurance of funding to finance the acquisition and related
costs.
Subsection 16.5.. Development Activity for which Contracts
have been.Si nct ed. As of the date of adoption of the Tax
Increment Financing Plan, the City intends to enter into a
Development Agreement with Minnesota Commercial Railway Company
for the activities discussed below.
Subsection 16.6. Specific Development Expected to Occur.
At this time it is anticipated that an approximate 57,980 square
foot warehousing and transloading facility with an estimated
market value.of $1,159,600, calculated pursuant to Minnesota
Statutes Section 270.80, will be constructed in 1997.
Subsection 16.7. Prior Planned Improvements. The Authority
shall, after due and diligent search, accompany its request for
certification to the County Auditor or its notice of district
enlargement with a listing of all properties within Tax Increment
Financing District No. 15 for which building permits have been
issued during the eighteen (18) months immediately preceding
approval of the Tax Increment Financing Plan by the Authority.
16 - 1
3F
The county Auditor shall increase the original tax capacity of
Tax Increment Financing District No. 15 by the tax capacity of
each improvement for which the building permit was issued. If
said listing does not accompany the aforementioned request or
notice, the absence of such listing shall indicate to the County
Auditor that no building permits were issued in the eighteen (18)
months prior to the Authority's approval of the Tax Increment
Financing Plan.
Subsection 16.8. Fiscal Disparities. The Council hereby
elects the method of tax increment computation set forth in
Minnesota Statutes, Section 469.177, Subdivision 3, clause (a) if
and when commercial /industrial development occurs with Tax
Increment Financing District No. 15.
Subsection 16.9. Estimated Public Improvement Costs. The
estimated costs associated with Redevelopment Project No. 1 are
listed in Section I, Subsections 1.9 and 1.10.
Subsection 16.10. Estimated Amount of Bonded Indebtedness.
It is anticipated that $480,000 of bonded indebtedness could be
incurred with respect to this portion of Redevelopment Project
No. 1. Pursuant to Minnesota Statutes, Section 469.178,
Subdivision 1, General Obligation Tax Increment Bonds may be used
as. required to amortize the costs identified in Section I,
Subsections 1.9 and 1 -10. The City reserves the right to pay for
all or part of the activities listed in Section I, Subsections
1.9. and 1.10. relating to Redevelopment Project No. l as tax
increments are generated and become available_
Subsection 16.11. Sources of Revenue. The costs outlined
in Section I, Subsection 1.9..,will be financed through the annual
collection of tax increments.
Subsection 16.12. Estimated Oricrinal and.Captured Tax
Capacities. The tax capacity of all taxable property in Tax
Increment Financing District No. 15, as most recently certified
by the Commissioner of Revenue of the State of Minnesota on
January 2, 1996, is estimated to be $14,025.
The estimated captured tax capacity of Tax Increment
Financing District No. 15 upon completion of the proposed
improvements on January 2, 1998 is estimated to be $39,317.
Subsection 16..13. Tax Increment. Tax increment has been
calculated at- approximately $45,007 upon completion of the
improvements assuming a static tax capacity rate and a valuation
increase of zero percent (0%) compounded annually.
Subsection 16..14. Tax Capacitv Rate. The estimated
1996/1997 total tax capacity rate.is estimated at 114.4730 %.
16 - 2
3G
Subsection 16.15. Type of Tax Increment Financing District
Tax Increment Financing District No. 15 is, pursuant to Minnesota
Statutes, Section 469.174, Subdivision 12, an Economic
Development District.
Subsection 16.16. Duration of Tax Increment Financing
District. The duration of Tax Increment Financing District No.
15 is expected to be nine (9) years from date of receipt of the
first tax increment or eleven (11) years from approval of the TIF
plan, whichever is less. The date of receipt of the first tax
increment is estimated to be July, 1999. Thus, it is estimated
that Tax Increment Financing District No. 15, including any
modifications for subsequent phases or other changes, would
terminate in the year 2007.
Subsection 16.17. Estimated Impact on Other Taxing
Jurisdictions. The estimated impact on other taxing jurisdictions
assumes construction would have occurred without the creation of
Tax Increment Financing District No. 15. If the construction is
a result of tax increment financing, the impact is $0 to other
entities. Notwithstanding the fact that the fiscal impact on the
other taxing jurisdictions is $0 due to the fact that the
financing would not have occurred without the assistance of the
City, the attached Exhibit XVI -E reflects the estimated impact of
Tax Increment Financing District No. 15 if the "but for" test was
not met.
Subsection 16.18. Election of City Contribution The
Council hereby elects a qualifying local contribution equal to
ten percent (10.000) of the tax increment generated from Tax
Increment Financing District No. 15, as set forth in Minnesota
Statutes 273.1399.
Subsection 16.19. Modification of Tax Increment Financing
District and/or Tax Increment Financing Plan. On April 28., 1997,
no modifications to Tax Increment Financing District No. 15 or
the Tax Increment Financing Plan therefore has been made, said
date being the date of initial approval and adoption thereof by
the City Council.
\FRIDLEY \TIF \TIFPLAN.DOC
16 - 3
3HI
EXHIBIT XVI -A
PARCELS TO BE INCLUDED IN
TAX INCREMENT FINANCING DISTRICT NO. 15
AS ORIGINALLY ADOPTED APRIL 28, 1997
PIN 11- 30 -24 -31 -0011
PIN 11- 30 -24 -31 -0012
XVI -A -1
31
7M
( I )
3t0
tK�
O
EXHIBIT XVI -B
Boundary Map
73rd Avenue N
33l
t�I
i.
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xvI. 3J
7m
(a)
(a)
( Q}
350
t�f
i �1
i }T f
y
a�
y
'
-C102 .
y
NOrt1L0 Drive
3t0
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EXHIBIT XVI -B
Boundary Map
73rd Avenue N
33l
t�I
i.
i
xvI. 3J
7m
(a)
(a)
( Q}
350
t�f
i �1
RAILWAY1
EXHIBIT XVI - C
CASH FLOW ANALYSIS
EXHIBIT XVI - C - 2
3L
Original
Tax
Capacity
Estimated
Tax
Capacity
Captured
Tax
Capacity
Estimated
Tax
Increment
Less:
Admin.
Fees
Available
Tax
Increment
06/01/97
14,025
14,025
0
0
0
0
12/01/97
14,025
14,025
0
0
0
0
06/01/98
14,025
53,342
0
0
0
0
12/01/98
14,025
53,342
0
0
0
0
06/01/99
14,025
53,342
39,316
22,503
2,250
20,253
12/01/99
14,025
53,342
39,316
22,503
2,250
20,253
06/01/2000
14,025
53,342
39,316
22,503
2,250
20,253
12/01/2000
14,025
53,342
39,316
22,503
2,250
20,253
06/01/2001
14,025
53,342
39,316
22,503
2,250
20,253
12/01/2001
14,025
53,342
39,316
22,503
2,250
20,253
06/01/2002
14,025
53,342
39,316
22,503
2,250
20,253
12/01/2002
14,025
53,342
39,316
22,503
2,250
20,253
06/01/2003
14,025
53,342
39,316
22,503
2,250
20,253
12/01/2003
14,025
53,342
39,316
22,503
2,250
20,253
06/01/2004
14,025
53,342
39,316
22,503
2,250
20,253
12/01/2004
14,025
53,342
39,316
22,503
2,250
20,253
06/01/2005
14,025
53,342
39,316
22,503
2,250
20,253
12/01/2005
14,025
53,342
39,316
22,503
2,250
20,253
06/01/2006
14,025
53,342
39,316
.22,503
2,250
20,253
12/01/2006
14,025
53,342
39,316
22,503
2,250
20,253
06/01/2007
14,025
53,342.
39,316
22,503
2,250
20,253
12/01/2007
14,025
53,342
39,316
22,503
2,250
20,253
405,058
40,506
364,552
EXHIBIT XVI - C - 2
3L
EXHIBIT XVI -D
"BUT FOR" ANALYSIS
The redevelopment project consists of the acquisition of two (2)
parcels and site preparation for the construction of a
warehousing and transloading facility.
The redevelopment project could potentially increase employment
opportunities at the project site by approximately twenty -four
(24) people over a five (5) year period. In addition, upon
completion of the project, the City's tax base will increase by
approximately $854,700.
Because of the substantial costs of acquisition, public
.improvements, soil correction and preparation of the site for
unusual weight bearing supports, the redeveloper could not
proceed with this project without the Authority's assistance.
\FRIDLEY \TIF \TIFPLAN.EXH
XVI -D -1
3M
r
EXHIBIT XVI -E
ESTIMATED IMPACT OF TAX INCREMENT FINANCING DISTRICT NO. 15
IMPACT ON TAX BASE
IMPACT ON TAX RATE
TAX
ORIGINAL
ESTIMATED
CAPTURED
DISTRICT
RATE
TAX
TAX
TAX
TAX
AS %
ENTITY
BASE
CAPACITY
CAPACITY
CAPACITY
OF TOTAL
City of Fridley
29,228,679
14,025
53,342
39,317
0.135%
County of Anoka
181,018,245
14,025
53,342
39,317
0.022%
ISD #14
26,069,493
14,025
53,342
39,317
0.151%
IMPACT ON TAX RATE
* Assumes construction would have occurred without the creation of a Tax Increment Financing District.
If construction is a result of Tax Increment Financing, the impact is $0.
xvi 34
TAX
% OF
TAX
TAX RATE
ENTITY
RATE
TOTAL
INCREMENT
INCREASE
City of Fridley
0.15693
13.71%
6,170
0.021%
County of Anoka
0.30542
26.68%
12,008
0.007%
ISD #14
0.61268
53.52%
24,089
0.093%
Other
0.06970
6.09%
2,740
1.14473
100.00%
45,007
* Assumes construction would have occurred without the creation of a Tax Increment Financing District.
If construction is a result of Tax Increment Financing, the impact is $0.
xvi 34
AS MODIFIED APRIL 28, 1997
TAX INCREMENT FINANCING DISTRICT NO. 15
(MINNESOTA COMMERCIAL RAILWAY CO.)
Acquisition
Site Work, including Soil Correction and
Site Preparation for unusual weight
bearing supports
Public Improvements
Administration
Total
Maximum Estimated Bonded Indebtedness *
$150,000
150,000
50,000
50,000
$400,000
$480,000
* This amount includes capitalized interest in an amount sufficient
to pay interest on the bonds from the date of issue until the date
of collection of sufficient tax increment revenues to meet
scheduled interest payments when due.
\FRIDLEY \TIF \REDEPLAN.DDC
1 - 21
Im
MEMORANDUM
HOUSING
.REDEVELOPMENT
DATE: April 4, 1997
AUTHORITY
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Adoption of 1997 HRA Budget
The HRA reviewed the proposed budget prior to the March 13, 1997 HRA meeting.
There were no changes suggested by the HRA to the proposed budget.
Staff is, however, suggesting a minor modification to the housing operating budget of
$640 to purchase an ergonomically correct chair for the Housing Coordinator's office.
Recommendation
Staff recommends that the HRA adopt the 1997 HRA budget (the corrected budget is
included in the packet; the budget from the March 130' meeting should be recycled).
BD /dw
M -97 -162
0
TO: FRIDLEY KR.A
FROM: CITY OF FRIDLEY
RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES
MARCH 1997
TOTAL EXPENDITURES
File:1EXDATAWRA%7lR97BILL.)ds Details
TOTAL BENEFITS EXPENSES:
MARCH 1997
9
196.11
Account Vs for
Account Vs for
CR
HRKs Use
City's Use
Code
ADMINISTRATIVE BILLING:
ADMINISTRATIVE PERSONAL SERVICES
20,394.75
101 - 0000 - 341 -1200
H1
ADMINISTRATIVE OVERHEAD
284.13
101 - 0000 - 336 -3000
HA
COMPUTER OVERHEAD
206.26
101 - 0000 - 336 -3000
HA
(For Micro & Mini computers)
TOTAL ADMINISTRATIVE BILLING:
460- 0000 - 430 -4107
20.885.14
OPERATING EXPENSES:
USPS - POSTAGE.
262 -0000- 430 -4332
13.28
236 -0000- 336 -3000
HA
OFFICE DEPOT - SUPPLIES
460- 0000 - 430 -4220
92.78
236 -0000- 336 -3000
HA
USPS - POSTAGE
US WEST - PHONE SERVICE
460 - 0000 -430 -4332
16.64
236 -0000- 336 -3000
HA
E.C.M. PUBLISHERS - CLASSIFIED AD
460 - 0000-430 -4332
460 -0000- 430 -4334
23.90
192.00
236 -0000- 336 -3000
HA
AMERICAN EXPRESS - MEETING EXPENSE
460- 0000 - 430 -4337
57.03
236 -0000 -336 -3000
236 -0000- 336 -3000
TOTAL OPERATING EXPENSES:
395.63
BENEFITS EXPENSES:
CITY OF FRIDLEY - HEALTH INS
262 -0000- 219 -1001
171.05
236 - 0000 - 219 -1001
11
CITY OF FRIDLEY - DENTAL INS
262 -0000- 219 -1100
21.56
236- 0000 -219 -1100
12
CITY OF FRIDLEY - LIFE INS
262 -0000- 219 -1200
3.50
236 -0000- 219 -1200
13
TOTAL EXPENDITURES
File:1EXDATAWRA%7lR97BILL.)ds Details
TOTAL BENEFITS EXPENSES:
MARCH 1997
9
196.11
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MEMORANDUM
HORSING
REDEVELOPMENT
AUTHORITY
DATE: April 4, 1997
TO: William Bums, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Resolution Modifying Redevelopment Program and Creating
TIF District No. 16, Linn Property Holdings
Request
Steve Linn of Linn Property Holdings has filed a tax increment financing application to
create a TIF district to complete a. redevelopment project on the north side of 57'
Avenue. The developer has entered into a purchase agreement for the former Dick's
Wheel and. Tire building and three other lots to the west of Dick's Wheel and Tire. The.
proposed redevelopment would renovate Dick's Tire into a Goodyear Service Center
(8,640 square feet) and the parcels to the west of the service center would be
redeveloped into an 8,000 square foot retail mall.
The total project cost is $1,566,200. The developer is requesting $200,000 in tax
increment .financing assistance. The requested assistance would be used to defray
approximately $461,000 of land acquisition and demolition expenses.
Modification to Project Area and Creation of Tax Increment District
The proposed district would be a redevelopment district and could last up to 25 years.
Proposed for HRA action is approving the attached resolution to modify the
redevelopment project area and create TIF District #16.
The TIF district would include the five parcels proposed for redevelopment. It is also
proposed that.the modification to the project area not only contain the five parcels, but
also the existing and proposed right -of -way for 5r Avenue from Main Street to
approximately 300 feet east of University Avenue.
TIF District No. 16
April 4, 1997
Page 2
The TIF plan estimates that $513,000 of increment will be generated over 20 years. It
is estimated that the Goodyear Service Center market value at $432,000 (versus the
existing $293,000 assessor's value), and the new strip mall's market value will be
$518,700. About $25,000 a year in increment is estimated.
57th Avenue Improvements
As a result of the developer's request, and because Holiday Plus may add a station
store on the south side of 57th Avenue in the near future, the 1996 traffic study
completed by Home Depot on 57"' Avenue was revised and updated (BRW, Inc. was
hired by the City of Fridley to complete the update, and Holiday Plus and Steve Linn
paid for the traffic study).
Several alternatives were analyzed, and after review by City staff, it is recommended
that a reconstruction project be undertaken to improve the operation of 570' Avenue
(see attached plan labeled 5 -lane Alternative No. 3). Anoka County maintains 57th
Avenue. Reconstruction of the road is not included in the County's five year plan.
On March 31, 1997, the City Council authorized staff to write a letter to request the
County to include it in its five year program. The City will contribute $100,000 toward
the $500,000 project, plus pay for the final engineering design fees (approximately
$50,000). The City will be attempting to recover 50% of the design fees from Home
Depot. Anoka County will be evaluating the request this month and construction could
begin as soon as Spring of 1998, depending upon Anoka County's decision.
Reconstructing the road also .provides a perfect opportunity to improve the appearance
of the area. The double ball decorative lights have been installed in other areas in the
City. In addition, the additional right -of -way expansion along the south side of 57h
Avenue will require the removal of some of the existing trees on the Holiday Plus
property. Therefore, there will be very little vegetation left along the right -of -way. A
landscaping plan and irrigation plan should also be incorporated into the project.
It is recommended that 50% of the lighting and landscapingfirrigabon costs be
assessed to the property owners and that the remaining 50% be paid by the Housing &
Redevelopment Authority. In order to accommodate these expenses, the project area
needs to be expanded along the 57"' Avenue right -of -way so that the HRA can legally
spend increment in a project area.
TIF District No. 16
April 4, 1997
Page 3
The anticipated costs for the street lights is approximately $75,000 total; 50% of which
would be approximately $37,500 plus the landscaping and irrigation costs. This
expenditure would therefore be a 1998 expenditure.
The increment from the newly created Tax Increment Financing District No. 16 can be
used to repay the HRA for its costs. The increment from the first 12 years of the district
would be pledged toward the pay -as- you-go note; however, the increment after year 12
would reimburse the costs expended by the HRA in 1998.
Requested Assistance
The developer is requesting $200,000 of assistance. The requested amount is not.a
subsidy. The requested amount is part of the redevelopment costs and is different from
the assistance that is proposed to be provided for Minnesota Commercial Railway..
The TIF guidelines which were adopted by the HRA and the City in 1992 defined "cost"
as the amount of money needed to acquire land, prepare the site, or construct public
improvements. A "subsidy" is defined as the amount of assistance to a developer that
allows the developer to acquire the site below its fair market value. In this case, the
requested amount of assistance is helping to defray the land acquisition and demolition
costs. In the Minnesota Commercial Railway project, the assistance is a subsidy in
order to correct the soil to make it comparable to a vacant piece of land in another
community. Further; the guidelines define redevelopment as referring to improved
and /or blighted properties. The Dick's Wheel and Tire building is in need of substantial
rehabilitation and the single family home, and duplex which was recently. demolished,
also meet the blight criteria.
The proposed assistance package recommended by staff is to provide $175,000 of
assistance through a pay -as- you -go note. In this way, the burden is on the developer
to construct the project. Jim Casserly's analysis (see memo in packet dated April 1,
1997) contains the pro forma, "but for" analysis, and revenue note schedule. It is clear
that the project would not proceed but for the Authority's assistance.
9 Jl!i3.1
The rehabilitation to the former tire building will be extensive. The following are some of
the proposed improvements:
L"Oln
TIF District No. 16
April 4, 1997
Page 4
1. new roof
2. new HVAC
3. remodeled fascia including new windows
4. new overhead doors with glass panels
5. new bathrooms to ADA code
6. dropped ceiling
7. removal of one bay at rear of building for indoor tire storage
8. refurbish office area
9. clean existing brick
10. blue cloth canopy
11. expanded parking area and curbing
12. new site fencing
The 8,000 square foot strip mall will be a brown face block with metal roofs and glass
along the south (front) and west elevations. A large entrance canopy is proposed on
the south and north sides. Decorative fencing is proposed at the comers of the site.
Decorative light packages are also proposed. Cloth canopies are also proposed.
A rendering of the buildings will be available at the meeting.
Neighborhood Meeting
A neighborhood meeting was held on March 18, 1997 and was well attended. In
general, the comments were positive as residents in the area felt that the development
would clean up the area. The Appeals Commission will be reviewing a variety of
variance requests on April 9, 1997 and the City Council will conduct the public hearing
on the TIF district on Monday, April 14, 1997. The City Council will then act on all of the
applications on April 28, 1997.
Recommendation
The proposed project represents a significant improvement to the 5r Avenue
neighborhood. As a result of the project, a street reconstruction plan has also been
developed which will significantly improve the traffic operations of the area and through
the reconstruction will improve the appearance of the area. The recommended
assistance to the project is of minimal risk to the HRA since it is proposed to be via a-
pay-as- you-go note. Further, the project is consistent with the HRA guidelines.
Staff recommends the following:
TIF District No. 16
April 4, 1997
Page 5
1. The HRA adopt the resolution recommending modification to the project area and
creating Tax Increment Financing District No. 16. The project area (not the TIF
district) shall also include the existing and proposed right -of -way for 57' Avenue.
2. Direct staff to prepare a development contract providing $175,000 worth of tax
increment assistance via a pay -as- you-go note. The development contract will be
submitted to the HRA at its May 8, 1997 meeting.
Additional details on the exact cost of the lighting and landscaping will be forthcoming
on a future HRA agenda; the action tonight does not bind the HRA at this time.
B D /dw
M -97 -166
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RESOLUTION NO.
A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN
FOR REDEVELOPMENT PROJECT NO. 1 AND THE TAX
INCREMENT FINANCING PLANS FOR TAX INCREMENT
FINANCING DISTRICTS NOS. 1, 2, 3, 6, 7, 9, 10,
11, 12, 13, 14 AND 15 TO REFLECT INCREASED
PROJECT AREA AND INCREASED PROJECT COSTS
WITHIN REDEVELOPMENT PROJECT NO. 1, AND
CREATING TAX INCREMENT FINANCING DISTRICT NO.
16 AND ADOPTING A TAX INCREMENT FINANCING PLAN
RELATING THERETO
BE IT RESOLVED by the Board of Commissioners (the "Commissioners ")
of the Housing and Redevelopment Authority in and for the City of
Fridley, Minnesota (the "Authority "), as follows:
Section 1. Recitals.
1.01. It has been proposed that the Authority modify, approve and
adopt a Modified Redevelopment Plan relating to Redevelopment
Project No. 1 to reflect increased project area and increased
project costs, pursuant to and in accordance with Minnesota
Statutes, Sections 469.001 to 469.047, inclusive, as amended and
supplemented from time to time.
1.02. It has been further proposed that the Authority modify,
approve and adopt Modified Tax Increment. Financing Plans for Tax
Increment Financing Districts Nos. 1, 2, 3, 6, 7, 9; 10, 11, 12,
13, 14 and 15 (the "Existing TIF Districts ") to reflect increased
project area and increased project costs within Redevelopment
Project No. 1, pursuant to Minnesota Statutes, Section 469.174
through 469.179, inclusive, as amended and supplemented from time
to time.
1.03. It has been further proposed that the Authority approve the
creation of proposed Tax Increment Financing District No. 16 and
adopt a proposed Tax Increment Financing Plan relating thereto,
pursuant to and in accordance with Minnesota Statutes. Section
469.174 to 469.179, inclusive, as amended and supplemented from
time to time.
1.04. The Authority has investigated the facts -and has caused to
be prepared with respect thereto, a Modified Redevelopment Plan for
Redevelopment Project No. 1 and Modified Tax Increment Financing
Plans-for-the Existing TIF Districts to reflect increased project
area and increased project costs within Redevelopment Project No.
1 and a proposed Tax Increment Financing Plan for proposed Tax
Increment Financing District No. 16,. defining more precisely the
property to be included the public costs to be incurred, and other
�1
Page 2 - Resolution No. _
matters relating thereto.
1.05. The Authority has performed all actions required by law to
be performed prior to the modification, approval and adoption of
the Modified Redevelopment Plan, the Modified Tax Increment
Financing Plans and the proposed Tax Increment Financing Plan.
1.06. The Authority hereby determines that it is necessary and in
the best interests of the City and the Authority at this time to
modify, approve and adopt the Modified Redevelopment Plan and the
Modified Tax Increment Financing Plans to reflect increased project
area and increased project costs within Redevelopment Project No.
1 and to create proposed Tax Increment Financing District No. 16
and to approve and adopt the proposed Tax Increment Financing Plan
relating thereto.
Section 2. Findings.
2.01. The Authority hereby finds that the assistance to be
provided through the adoption and implementation of the Modified
Redevelopment Plan, Modified Tax Increment Financing Plans and
proposed Tax Increment Financing Plan are necessary to.assure the
development and redevelopment of Redevelopment Project No. 1.
2.02. The Authority hereby finds that the Modified Redevelopment
Plan, Modified Tax Increment Financing Plans and proposed Tax
Increment Financing Plan conform to the general plan for the
development and redevelopment of the City as a whole in that they
are consistent with the City's comprehensive plan.
2.03. The Authority finds that the Modified Redevelopment Plan,
Modified Tax Increment Financing Plans, and proposed Tax Increment
Financing Plan afford maximum opportunity consistent with the sound
needs of the City as a whole for the development and redevelopment
of Redevelopment Project No. 1 by private enterprise and it is
contemplated that the development and redevelopment thereof will be
carried out pursuant to redevelopment contracts with private
developers.
Section 3. Modification Approval and Adoption of Modified
Redevelopment Plan.
3.01. The modifications to the Modified Redevelopment Plan for
Redevelopment Project No. 1 reflecting increased project area and
increased project costs are hereby approved and adopted by the
Commissioners of the Authority and are forwarded to the Fridley
City Council for public hearing, review and approval.
Section 4. Modification Approval and Adoption of Modified Tax
Increment Financing Plans.
4.01. The modifications to the Modified Tax Increment Financing
oil
Page 3 - Resolution No.
Plans for the Existing TIF Districts reflecting increased project
area and increased project costs within Redevelopment Project No.
1 are hereby approved and adopted by the Commissioners of the
Authority and are forwarded to the Fridley City Council for public
hearing, review and approval.
Section 5. Creation of Tax Increment Financincr.. District and
Adoption of Tax Increment Financing Plan.
5.01. The establishment of proposed Tax Increment Financing
District No. 16 within Redevelopment Project No. 1 and the adoption
of the proposed Tax Increment Financing Plan relating thereto are
hereby approved and adopted by the Commissioners of the Authority
and are forwarded to the Fridley City Council for public hearing,
review and approval.
Section G. Filing of Plans.
6.01. Upon approval and adoption of the Modified Redevelopment
Plan, the Modified Tax Increment Financing Plans and the proposed
Tax Increment Financing Plan (collectively the "Plans "), the
Authority shall cause said Plans to be filed with the Commissioner
of Revenue.
PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF FRIDLEY THIS DAY OF 1 199.
LAWRENCE R. COMMERS - CHAIRPERSON
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
CERTIFICATION
I, William W. Burns, Executive Director of the Housing and
Redevelopment Authority in and for the City of Fridley, County of
Anoka, Minnesota, hereby certify that the foregoing is a true and
correct copy of Resolution No. passed by the Authority
on the day of
199.
\FRIDLEY \TIF \HRA- LI.RES WILLIAM W. BURNS - EXECUTIVE DIRECTOR
J
SECTION XVII
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 16
(LINN PROJECT)
Subsection 17.1. Statement of Objectives. See Section I,
Subsection 1.5. Statement of Objectives.
Subsection 17.2. Modified Redevelopment Plan. See Section
I, Subsections 1.2. through 1.15.
Subsection 17.3. Parcels to be Included. The boundaries of
Tax Increment Financing District No. 16 are described on the
attached Exhibit XVII -A and illustrated on Exhibit XVII -B.
Subsection 17.4. Parcels in Acquisition. The Authority may
publicly acquire and reconvey any or all of the parcels in Tax
Increment Financing District No. 16 identified on the attached
Exhibit XVII -A.
The following are conditions under which properties not
designated to be acquired may be acquired at a future date:
(1) The City.may acquire property by gift, dedication,
condemnation or direct purchase from willing sellers in order to
achieve the objectives of the Tax Increment Financing Plan; and
(2) Such acquisition will be undertaken only when there is
assurance of funding to finance the acquisition and related
costs.
Subsection 17.5. Development Activity for which Contracts
have been Sicmed. As of the date of adoption of the Tax
Increment Financing Plan, the City intends to enter into a
Development Agreement with Linn Property Holdings, L. L. C. for
the activities discussed below.
Subsection 17.6. Specific Development Expected to Occur.
At this time it is anticipated that the rehabilitation of the
existing 8,640 square foot Dick's Tire facility with an estimated
market value of $432,000, and the construction of an approximate
7,980 square foot retail center with an estimated market value of
$518,700 will occur in 1997.
Subsection 17.7. Prior Planned. Improvements. The Authority
shall, after due and diligent search, accompany its request for
certification to the County Auditor or its notice of district
enlargement with a listing of all properties within Tax Increment
Financing District No. 16 for which building permits have been
issued during the eighteen (18) months immediately preceding
17 - 1
i
6K
approval of the Tax Increment Financing Plan by the Authority.
The county Auditor shall increase the original tax capacity of
Tax Increment Financing District No. 16 by the tax capacity of
each improvement for which the building permit was issued. If
said listing does not accompany the aforementioned request or
notice, the absence of such listing shall indicate to the County
Auditor that no building permits were issued in the eighteen (18)
months prior to the Authority's approval of the Tax Increment
Financing Plan.
Subsection 17.8. Fiscal Disparities. The Council hereby
elects the method of tax increment computation set forth in
Minnesota Statutes, Section 469.177, Subdivision 3, clause (a) if
and when commercial /industrial development occurs with Tax
Increment Financing District No. 16.
Subsection 17.9. Estimated Public Improvement Costs. The
estimated costs associated with Redevelopment Project No. 1 are
listed in Section I, Subsections 1.9 and 1.10.
Subsection 17.10. Estimated Amount of Bonded Indebtedness.
It is anticipated that $450,000 of bonded indebtedness could be
incurred with respect to this portion of Redevelopment Project
No. 1. Pursuant to Minnesota Statutes, Section 469.178,
Subdivision 1, General Obligation Tax Increment Bonds may be used
as required to amortize the costs identified in Section I,
Subsections 1.9 and 1.10. The City reserves the right to pay for
all or part of the activities listed in Section I, Subsections
1.9. and 1.10. relating to Redevelopment Project No. l as tax
increments are generated and become available.
Subsection 17.11. Sources of Revenue. The costs outlined
in Section I, Subsection 1.9. will be financed through the annual
collection of tax increments.
Subsection 17.12. Estimated Original and Captured Tax
Cat)acities. The tax capacity of all taxable property in Tax
Increment Financing District No. 16, as most recently certified
by the Commissioner of Revenue of the State of Minnesota on
January 2, 1996, is estimated to be $19,610.
The estimated captured tax capacity of Tax Increment
Financing District No. 16 upon completion of the proposed
improvements on January 2, 1998 is estimated to be $24,122.
Subsection 17.13. Tax Increment. Tax increment has been
calculated at approximately $28,504 upon completion of the
improvements assuming a static tax capacity rate and a valuation
increase of zero percent (0°s) compounded annually.
Subsection 17.14. Tax Capacity Rate. The estimated
1996/1997 total tax capacity rate is estimated at 118.1680.
17 - 2
Subsection 17.15. Type of Tax Increment Financings District.
Tax Increment Financing District No. 16 is, pursuant to Minnesota
Statutes, Section 469.17441 Subdivision 10, a Redevelopment
District.
Subsection 17.16. Duration of Tax
District. The duration of Tax Increment
16 is expected to be twenty five (25) ye
first tax increment. The date of recei
increment is estimated to be July, 1999.
that Tax Increment Financing District N
modifications for subsequent phases or
terminate in the year 2024.
Increment Financing
Financing District No.
ars from receipt of the
pt of the first tax
Thus, it is estimated
No
16, including any
other changes, would
Subsection 17.17. Estimated Impact on Other Taxing
Jurisdictions. The estimated impact on other taxing jurisdictions
assumes construction would have occurred without the creation of
Tax Increment Financing District No. 16. If the construction is
a result of tax increment financing, the impact is $O.to other
entities. Notwithstanding the fact that the fiscal impact on the
other taxing jurisdictions is $0 due to the fact that the
financing would not have occurred without the assistance of the
City, the attached Exhibit XVII -E reflects.the estimated impact
of Tax Increment Financing District No. 16 if the "but for" test
was not met.
Subsection, 17.18. Election of City Contribution. The
Council hereby elects a qualifying local contribution equal to
five percent (5.00%) of the tax increment generated from Tax
Increment Financing District No. 16, as set forth in Minnesota
Statutes 273.1399.
Subsection 17.19. Modification of Tax Increment Financing
District and/or Tax Increment Financings Plan. On April 28, 1997,,
no modifications to Tax Increment Financing District No. 16 or
the Tax Increment Financing Plan therefore has been made, said
date being the date of initial approval and adoption thereof by
the City Council.
\FRIDLEY \TIF \TIFPLAN.DOC
17 - 3
EXHIBIT XVII -A
PARCELS TO BE INCLUDED IN
TAX INCREMENT FINANCING DISTRICT NO. 16
AS ORIGINALLY ADOPTED APRIL 28, 1997
PIN 23- 30 -24 -23 -0028
PIN 23- 30 -24 -23 -0029
PIN 23- 30 -24 -23 -0030
PIN 23- 30 -24 -23 -0031
PIN 23- 30 -24 -23 -0032
XVII -A -1
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EXHIBIT XVII -B
BOUNDARY DMP
Main ST
2nd Street N E.
Fal
It
t _
2 1/2 Street N.E.
3rd Street N.E.
University Avenue NX
XVI
so
Illomm
CD
CD
Fal
It
t _
2 1/2 Street N.E.
3rd Street N.E.
University Avenue NX
XVI
so
Illomm
EXHIBIT XXVII - C
ASSUMPTIONS
Original Market Value
426,300
23- 30 -24 -0028
Land sq. ft. Land M.V. Bldg M.V.
Total M.V.
-23
23- 30 -24 -23 -0029
5,600
11,200
15,400 0
20,400 26,500
15,400
46,900
23- 30 -24 -23 -0030
23- 30 -24 -23 -0031
11,200
20,400 35,500
55,900
23- 30 -24 -23 -0032
28,000
92,400 201,000
293,400
5,600
14,700 0
14,700
61,600
163,300 263,000
426,300
Original Tax Capacity
4.600%
19,610
1996/1997 Tax Rate
Administrative Fees
1.181680
Inflation
10.000%
P.V. Rate
0.000%
12/01/97
8.500%
Estimated Market Value
New Construction
7,980 sq. ft. @
65.00 per sq. ft.
518,700
950,700
Rehabilitation
8,640 sq. ft. @
50.00 per sq. ft.
432,000
Estimated Tax Capacity
4.600%
Estimated Taxes
16,620 sq. ft. @
3.11 per sq. ft.
43,732
51,677
Construction
1997
Valuation
1998
Taxes Payable
1999
INN1 X\ 1
EXHIBIT XXVII - C
XVi
LINN1
CASH FLOW
Original
Estimated
Captured
Estimated
Less:
Estimated
Tax
Tax
Tax
Tax
Admin
Tax
Date
Capacity
Capacity
Capacity
Increment
Costs
Increment
06/01/97
19,610
19,610
0
0
0
0
12/01/97
19,610
19,610
0
0
0
0
06/01/98
19,610
43,732
0
0
0
0
12/01/98
19,610
43,732
0
0
0
0
06/01/99
19,610
43,732
24,122
14,252
1,425
12,827
12/01/99
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2000
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2000
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2001
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2001
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2002
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2002
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2003
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2003
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2004
19,610
43,732
24,122
14,252
1,425
12,827
12/0112004
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2005
19,610
43,732
24,122
14,252
1,425
12,827
12/01 12005
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2006
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2006
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2007
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2007
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2008
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2008
19,610
43,732
24,122
14,252
1,425
12,827
06/0112009
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2009
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2010
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2010
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2011
19,610
43,732
24,122
14,252
1,425
12,827
12101/2011
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2012
19,610
43,732
24,122
14,252
1,425
12,827
12/01 /2012
19,610
43,732
24,122
14,252
1,425
1 2,827
06/01 /2013
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2013
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2014
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2014
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2015
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2015
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2016
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2016
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2017
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2017
19,610
43,732
24,122
14,252
1,425
12,827
06/01/2018
19,610
43,732
24,122
14,252
1,425
12,827
12/01/2018
19,610
43,732
24,122
14,252
1,425
12,827
570,099
57,010
513,089
XVi
LINN1
EXHIBIT XVII -D
"BUT FOR" ANALYSIS
The redevelopment project consists of the acquisition and
complete renovation of the existing "Dick's Tire" to a Goodyear
Tire and Service Center. The current facility is outdated and in
substandard condition, in need of complete renovation, including
but not limited to, the renovation of the roof, floors, ceilings
and electrical and mechanical systems. Contemporaneously, a new
retail center will be constructed on the adjacent property. In
order to do so, two houses will be acquired and demolished and
replaced on these two lots and an adjacent lot. This retail
development will be congruous with the renovated tire store and
increase the value of both developments.
The redevelopment project could potentially increase the
employment at the project site by fifteen to twenty people. In
addition, upon completion of the project, the City's tax base
will increase by approximately $524,400.
Because of the substantial costs of acquisition, renovation and
reconstruction of the existing facility and the acquisition,
relocation and demolition for construction of the new retail
facility, the redeveloper could not proceed with this project
without the Authority's assistance.
XVI -D -1
EXHIBIT XVII - E
ESTIMATED IMPACT OF TAX INCREMENT FINANCING DISTRICT NO. 16
IMPACT ON TAX BASE
IMPACT ON TAX RATE
TAX
ORIGINAL
ESTIMATED
CAPTURED
DISTRICT
RATE
TAX
TAX
TAX
TAX
AS %
ENTITY
BASE
CAPACITY
CAPACITY
CAPACITY
OF TOTAL
City of Fridley
27,329,921
19,610
43,732
24,122
0.088%
County of Anoka
146,471,588
19,610
43,732
24,122
0.016%
ISD #14
11,514,810
19,610
43,732
24,122
0.209%
IMPACT ON TAX RATE
* Assumes construction would have occurred without the creation of a Tax Increment Financing District.
If construction is a result of Tax Increment Financing, the impact is $0.
LINN XVII S
TAX
% OF
TAX
TAX RATE
ENTITY
RATE
TOTAL
INCREMENT
INCREASE
City of Fridley
0.15242
12.90%
3,677
0.013%
County of Anoka
0.30091
25.46%
7,259
0.005%
ISD #14
0.66159
55.99%
15,959
0.139%
Other
0.06676
5.65%
1,610
1.18168
100.00%
28,504
* Assumes construction would have occurred without the creation of a Tax Increment Financing District.
If construction is a result of Tax Increment Financing, the impact is $0.
LINN XVII S
AS MODIFIED APRIL 28, 1997
TAX INCREMENT FINANCING DISTRICT NO. 16
(LINN PROJECT)
Acquisition and Relocation
Demolition
Site Preparation
Administration
Total
Maximum Estimated Bonded Indebtedness *
$270,000
$ 25,000
$ 25,000
$ 55,000
$375,000
$450,000
* This amount includes capitalized interest in an amount sufficient
to pay interest on the bonds from the date of issue until the date
of collection of sufficient tax increment revenues to meet
scheduled interest payments when due.
1 - 21
i
MEMORANDUM
HOUSING
L1
REDEVELOPMENT
AUTHORITY
DATE: April 4, 1997
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Prevailing Wage Ordinance
The City Council at its March 31, 1997 meeting approved for first reading an ordinance
which would require payment of prevailing wages by contractors or subcontractors
financed by the City. The ordinance defines the term "City" to refer to not only the City
of Fridley, but to all related agencies including the Housing & Redevelopment Authority.
Prevailing wages will not have to be paid for any projects which have a value of less
than $25,000, or for a housing project or program related to one, two, three, or four
families per building. The upcoming development contracts for the Minnesota
Commercial Railway project and the Linn redevelopment project will include language
requiring the payment of prevailing wages.- The development contract for the Noah's
Ark senior housing building, to be known as "Waters' Crest", also contained the
prevailing wage language.
No action is needed by the HRA at this time.
BD /dw
M -97 -163
I
DATE: MARCH 27, 1997
TO: MAYOR AND CITY COUNCIL
CITY MANAGER #46'
CITY ATTORNEY
FROM: STEVE BILLINGS, COUNCILMEMBER WARD ONE
SUBJECT: PREVAILING IMAGE ORDINANCE
Attached is the prevailing wage ordinance for the regular agenda of March 31,
1997.
This ordinance is similar to the resolution that I previously presented and was
�.. approved in March of 1990 by the City Council, It is also similar to,. but more
inclusive than, the ordinance that was drafted by staff in response" to -the
Mayor's request.
In 1990, 1 did a. detailed analysis of Ae public, works projects that were done
, ..
r�ghe 4penod, 1986 to 199Qlowidrthat`jmost ag of'the contractors'that
weAdworknrith �nrere, m: fact �he revaiGn wag. x Further,
, x he �; � �� P 9 9 l found
that �f we had a revadm wa e.
i . P g+gioi` icy �n force Bunn }thatame frame the .cost
to the C11ty would have 4 ncreas r'oximately 1 %* S1nce we have .had
preva�Gngwage -in fo an lyss of cuirent''dataiivould'be
meaningless.
In the proposed ordinance, 1-ha,
from the prevailing wage requi re
of our.,housing. stock andtare pr
ends `.Often to get the "most for
of the . work, with the aid ofl fam'.
nephew a few dollars to help wrtl
81sAa,...
part of a larger project, we would
wage requirements.
excluded one to four family dwelling units
ents�p INe are'encouraging.the revitalization
`.ti= erg -� d 5.,-. � ., ..
ndiing!Joans'-and grants to -accomplish these
l!"oney;1 homeowners will perform much
►ga�dbfnends'` if someone were to pay their
a4deckEiroof or�painting and stainfing that are
iotexpect them to follow all of the' ±prevailirg
7 A o
I
Prevailing Wage Ordinance
March 27, 1997
Page Two
In determining the "cut -off" point for the exclusion, 1 chose to use the Federal
HUD guideline of four families. It is likely that owners of larger properties will
contract out for all of the work.
Although it was suggested that we have liquidated damages in the ordinance
as a penalty, I did not place them there. It would seem that liquidated damages
are a civil ( contractual ) penalty that should be covered in the actual contract
language. The ordinance would in all likelihood be enforced by the Courts with
criminal penalties set by the Judge.
Upon adoption of the ordinance on first reading, i am prepared to make a
motion directing the City Manager and the City Attorney to draft language to
be used in all City and HRA contracts, loan agreements, grant agreements, and
development agreements that will provide the necessary procedure for
enforcement of the prevailing wage ordinance and provide for liquidated
damages of five percent (5 %) of the contract amount. Said language shall be
presented to the City Council at the time of the second reading of the
ordinance.
It would be my intent that this language not become part of the actual
ordinance, but, rather, would be oG
intent .that this lan ua a and P c of the :City. Further, it would be my
.., 9 g ;�,: @, procedure be
patterned after that "of he Anoka r
County and Minnesota ... =r: Departmerrt, of,4' n language: and =procedures:
1 hope ,that 1 have provided you :with.what you are looking for.',: If -not leas
contact me prior.to Mondays . meeti P = e ��
meets your needs. ng.'and we can 'draft a modification °that
Attachment
14
y n
1,
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF FRIDLEY, MINNESOTA, ADOPTING
THE PREVAILING HOURS OF LABOR AND PREVAILING WAGE RATE ON
CERTAIN PROJECTS FOR OR WITHIN THE CITY
The City Council of the City of Fridley does ordain as follows:
Subdivision 1. Legislative Findings. The City of Fridley finds it
to be in the best interest of its citizens that buildings and
public works projects constructed with City funds be constructed
and maintained by the best means and highest quality of labor
reasonably available, and that persons working under contract on
buildings and public works constructed in whole or in part with
City funds should be compensated according to the real value of the
services they perform, which, for purposes of this Ordinance, is
defined as the prevailing wage and hours of employment as
determined for the City by the Minnesota Department of Labor and
Industry, pursuant to Minnesota Statutes, Section 177.42, subd 6.
Subdivision 2. Prevailing Wages and Hours on Certain City - related
{ or funded Projects.
a. Wages paid for all work performed by contractors and
subcontractors that is financed in whole or in part by
.funds obtained by.bonds issues by the City, including but
not limited to Industrial Revenue Bonds, and all:projects
let after. Nlay 1, : 1997, financed: by General .Obligation -Tax
Increment*,'.,-. Bonds shall be...paid :in:.accordance'.with�. the
prevailing wage and hourly -rate.-`-
b. Wages paid for,. -all work performed by contractors and
subcontractors on any project let after May 1, 1997, that
is financed. in whole or in part by City funds shall be
paid in accordance with the prevailing wage and hourly
rate.
c. Wages paid. for all work performed on any project' for a
Developer in conjunction with the*. Developer's development
of real property, in the City.if the Developer purchases
said.real property from the City;, , y, or if the City grants °.':.
or loans money to- they Developer fore the developments of
said real property; shall }e pai& iri accordance with the
prevailing wage and hourly rate.
1� r
r
M +,
Ordinance No.
Page Two
d. The term "City" shall refer to the City of Fridley and to
all related agencies, including, but not limited to all
Housing and Redevelopment Authorities and Economic
Development Authorities created by the City of Fridley.
SubdivisiQn 3, Exceptions. This ordinance shall not apply to the
following circumstances:
a. Any project financed by City funds or bonds authorized by
the City as provided in subdivision 2 that has a value of
$25;000 or less or a value equal to or less than the
amount required for sealed bids by Minnesota Statutes,
Section 471.345, subd. 3.
b. Any housing project or program within the City directed
to housing for one, two, three, or four families per
building. %
PASSED AND C
ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
DAY OF 1997.
AYE: THE FOLLOWING COUNCIL MEMBERS VOTED
THE FOLLOWING NAY: AND
NANCY J. JORGENSON - MAYOR
ATTEST:
WILLIAM A. CHAMPA - CITY CLERK
First Reading:
Second Reading:
Publication;
r\
4
�J
1997
HRA B UDGET
7997 HRA BUDGET
Cash Flow and Projection of Annual ............ Pink
and Cumulative Balances
Budget Summary ........................... Cherry
Housing Programs .......................... Blue
Housing Fund (262) ......................... Green
Operating Budget ................ a ........... Yellow
............. C.
..................
04
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HOUSING COORD FUND (262) BUDGET 1997
PERCENT
j ACCOUNT DESCRIPTION
1996
BUDGET
1996
1997
INCREASE/
ESTIMATE
BUDGET
(DECREASE)
HOUSING PROGRAM
4101 FULL TIME EMPLOYEE -REG
39,666
39,052
67,582
4102 REGULAR 0/T PAY
4104 TEMPORARY EMPLOYEE-REG
15,600
15,084
4105 TEMP EMPLOYEE- OVERTIME
100
4112 EMPLOYEE LEAVE
l
4,937
293
5,192
9,408
4120 MEDICARE CONTRIBUTIONS
873
91
4122 SOCIAL SECURITY CONTRIB
3,732
863
3,692
1,116
28
j 4125 ICMA CONTRIBUTION
1,998
1,998
4,773
28
4131 HEALTH INSURANCE
2,304
2,330
3,449
4,608
73
4132 DENTAL INSURANCE
180
180
100
4133 LIFE INSURANCE
51
360
100
4134 CASH BENEFIT
51
102
100
4150 WORKERS COMPENSATION
1,268
1,294
1,868
47
* PERSONAL SERVICES
70,609
70,029
93,266
32
4220 OFFICE SUPPLIES
500
1,090
500
4221 OPERATING SUPPLIES
1,600
458
1,000
4229 WORK ORDER TRANSFER -PARTS
* SUPPLIES
2,100
1,548
1,500
29-
4330 PROFESSIONAL SERVICES
32,565
13,302
15,065
54-
4331 DUES & SUBSCRIPTIONS
500
402
350
4332 COMMUNICATIONS
4,000
516
750
30-
4333 TRANSPORTATION
500
81-
4334 ADVERTISING
.
15,000
15,184
500
8,000
47-
4335 PRINTING & BINDING
3,100
3,717
2,000
35-
4336 INSURANCE, NON - PERSONNEL
4337 CONFERENCES & SCHOOLS
11500
40
5,500
4338 UTILITY SERVICES
500
267
4340 SRVS CONTRACTED NON -PROF
96,960
40,075
80,300,
100-
17 -_'
4346 MISCELLANEOUS
4350 PAYMENTS TO OTHER GOUTS,,
17,250
2,266
:, 20 ,000
16 ...
* OTHER, SERVICES & CHARGES
171,875
75.502
732,465
23_.
4510 LAND'
4520 BUILDING
530,000
260,825
618,500
17
4530 IMPS OTHER THAN BUILDING
37,500
14,500
100
4560 FURNITURE & FIXTURES
3,160
4,580
* CAPITAL OUTLAY
570,660
279,905
1,640
620,140
48-
9
** HOUSING PROGRAM
815,244
426,984
847,371.
4
HOUSING COORD FUND (262)
BUDGET 1997
PERCENT
1996
1997
INCREASE/
ACCOUNT DESCRIPTION
i
BUDGET
BUDGET
(DECREASE)
HOUSING PROGRAM
4101 FULL TIME EMPLOYEE -REG
39,666
67,582
70
LEVEL TEXT
1
TEXT AMT
HOUSING COORDINATOR
40,702
REMODELING ADVISOR
26,880
67,582
4102 REGULAR 0/T PAY
4104 TEMPORARY EMPLOYEE-REG
15,600
100 -
4105 TEMP EMPLOYEE - OVERTIME
4112 EMPLOYEE LEAVE
4,937
9,408
91
LEVEL TEXT
TEXT AMT
1 HOUSING COORDINATOR
5,088
REMODELING ADVISOR
4,320
9,408
4120 MEDICARE CONTRIBUTIONS
873
1,116
28
LEVEL TEXT
TEXT AMT
1 HOUSING COORDINATOR
664
REMODELING ADVISOR
452
1,116
4122 SOCIAL SECURITY CONTRIB
3,732
4,773
28
LEVEL TEXT
TEXT AMT
1 HOUSING COORDINATOR
2,839
REMODELING ADVISOR
1,934
4,773
4125 ICMA CONTRIBUTION
1,998
3,449
73
LEVEL TEXT
TEXT AMT
1 HOUSING COORDINATOR
2,051
REMODELING ADVISOR
1,398
3,449
4131 HEALTH INSURANCE
2,304
4,608
100
LEVEL TEXT
TEXT AMT
1 HOUSING COORDINATOR
2,304
REMODELING ADVISOR
2,304
4,608
4132 DENTAL INSURANCE_:_
180
360
100
LEVEL TEXT
TEXT AMT
1 HOUSING COORDINATOR
180
REMODELING ADVISOR
180
360
i
HOUSING COORD FUND (262)
BUDGET 1997
PERCENT
1996
1997
INCREASE/
ACCOUNT DESCRIPTION
BUDGET
BUDGET
(DECREASE)
4133 LIFE INSURANCE
51
102
100
LEVEL TEXT
TEXT AMT
i 1 HOUSING COORDINATOR
51
REMODELING ADVISOR
51
i
102
4134 CASH BENEFIT
4150 WORKERS COMPENSATION
1,268
1,868
47
LEVEL TEXT
TEXT AMT
1 HOUSING COORDINATOR
934
REMODELING ADVISOR
934
1,868
* PERSONAL SERVICES
70,609
93,266
32
4220 OFFICE SUPPLIES
500
500
LEVEL TEXT
TEXT AMT
1 GENERAL SUPPLIES FOR HOUSING COORDINATOR AND REMOD
ELING ADVISOR
500
500
4221 OPERATING SUPPLIES
1,600
1,000
38-
LEVEL TEXT
TEXT AMT
1 INCREASED COST DUE TO REMODELING ADVISOR
1,000
1,000
4229 WORK ORDER TRANSFER- PARTS-
* . SUPPLIES
2,100 _;.
1,500.
29-
4330 PROFESSIONAL SERVICES .,
32,565
15,065
54-
LEVEL TEXT.,
TEXT AMT
1 ATTORNEY FOR SCATTERED SITE PROGRAM
10,000
CASSERLY'S CONSULTING ON
HOUSING PROGRAMS
5,000
WELLNESS TESTING
65
15,065
4331 DUES 8 SUBSCRIPTIONS
500
350
30-
LEVEL TEXT
TEXT AMT
1 HOUSING AFFAIRS NEWSLETTER
350
350
4332 COMMUNICATIONS
4,000
750
81-
LEVEL TEXT
TEXT AMT
1 POSTAGE
750
750
HOUSING COORD FUND 262
1996
ACCOUNT DESCRIPTION BUDS
i
4333 TRANSPORTATION 500
LEVEL TEXT
1 MILEAGE FOR REMODELING ADVISOR
4334 ADVERTISING
LEVEL TEXT
1 REMODELING FAIR
HOUSING PROGRAM
BUDGET 1997
PERCENT
1997 INCREASE/
BUDGET (DECREASE)
500
TEXT AMT
500
500
15,000 8,000 47-
TEXT AMT
4,000
4,000
8,000
4335 PRINTING & BINDING 3,100 2,000 35-
LEVEL TEXT TEXT AMT
1 MAGNETS AND POST -IT NOTES (HOUSING PROGRAM LOGO) 2,000
2,000
4336 INSURANCE, NON - PERSONNEL
4337 CONFERENCES & SCHOOLS 1,500 5,500 267
LEVEL TEXT TEXT AMT
1 SPONSORSHIP OF REMODELING FAIR 5,000
SEMINARS ON HOUSING TOPICS 500
5,500
4338 UTILITY SERVICES 500
100-
4340 SRVS CONTRACTED NON -PROF 96,960 80,300
17-
LEVEL, TEXT
TEXT AMT
1 COMPUTER MAINTENANCE:__
250
PRINTER MAIN TENMCE
250
". CEE LOAN ORIGINATION FEES (160 LOANS)
56,000
CEE INSPECTION FEES (160 LOANS)
16,000
CRF LOAN SERVICING FEES (160 LOANS)
7,860
80,300
4346 MISCELLANEOUS
4350 PAYMENTS TO OTHER GOVTS 17,250 20,000 16
LEVEL TEXT TEXT AMT
1 1996 HOME PROGRAM MATCH 15,000
ADMIN. TO ACCAP FOR 1995 HOUSING REHAB CONTRACT 5 000
* OTHER SERVICES & CHARGES 171,875
4510 LAND` 530,000
LEVEL TEXT
1 ACQUISITION OF 10 HOMES
20,000
132,465 23
618,500 17
TEXT AMT
550,000
0=09 COM FUMD BUDGET 199Y
SIT
.10 199'J` INS
I�ID�3,tIQli
t _ ` Solo*
5,990
TT 21,E
�jw RAW
-,
SAW
i� # RT 3,160 1A9
Left TEXT TEXT A!!i
Palma tli o t,9@9
*W pMIR
Ii 1649
I ; CAPITAL, WTiAY 570,460 (, 9
MOU9MGt 8iS.26# 1i7,3Ti. 6
t
x
's
-
y.yvL
tti �
Aw-
Vl
ran d
HRA OPERATING BUDGET SUMMARY
BUDGET 1997
ACCOUNT DESCRIPTION
1994
ACTUALS
1995
ACTUALS
1996
1
1997
PERCENT
INCREASE/
ADMIN CHARGES
BUDGET ESTIMATE
MA
B UDGET
(DECREASE)
784,905
185,154
243,322 243,322
250,621
"� PERSONAL
ONAL SERVICES
- ---- - - -- ---
184,905
-- ---- --- ---
------------
---- --- - - - --
------ -- - ----------
-----3
*
185 154
243 322
243,322
- 250,621
OFFICE SUPPLIES
11
45
�
250
173
250
# OPERATING SUPPLIES
537
36
400
1,145
400
REPAIR & MAINTENANCE SUPP
SUPPLIES
- - - - - - -- -
548
------------
- - - - --
650
1.318
-------------
650
* PROFESSIONAL SERVICES
109,197
356,304
•
237,500
200,583
305,000
28
DUES & SUBSCRIPTIONS
,r
466
280
425
252
165
61-
COMMUNICATIONS
� 426
1'737
875
742
675
" TRANSPORTATION
23-
130
600
491
600
* ADVERTISING
24,233
21,938
18,000
* PRINTING & BINDING
504
77,000
6_
*
879
999
2,230
1,459
2950
,
32
INSURANCE, NON - PERSONNEL
6,454
9,635
*
9,045
9,841
8,214
9-
CONFERENCES & SCHOOLS
683
410
1,600
1,507
1,600
UTILITY SERVICES
4,296
*
4,176
3,300
7,904
3,500
6
SRVS CONTRACTED NON-PROF
78,820 '
228,543
96,250
47,389''
31,750
67-
* RENTALS
MISCELLANEOUS
138,649_
183,857
•
37,829.,:
227,185
125,121
231 ,
PAYMENTS TO OTHER GOVTS
296,246
304,548
315,046
158,380
315,827
------
"y` OTHER SERVICES & C HARGES
- - - - -- ---- - - - - --
660 349 ,. 1,712,557
'
- -;" --'
----- --- -----
--- - --------
- - - -'Z
722 700
650,237
812,402
LAND
142,970 3,667,040
335,000 ":,548,694
651,000
r BUILDING.
94
IMPS OTHER THAN BUILDING
287,115
251170
15,000
40-
PUBLIC UTILITY & IMPROVEM
2,061
------
CAPITAL OUTLAY
- - - - -- ------------ -""-
430,085 3 667,00 360,170
--- ---- -
550 755
- - -85
, 666,000
I
I
y
„ t
3
r
tt. a
t.
On kt
jv
�z.� ..:. ?'� . RV `> ..,.��', ... , .. _ ,. . F , . K.,....�72 �...�a.- f''�`x. y ... ,. >�:.,.ras �. �`� .r ru >,,.�3 .�' t'•^- .��,.r?." �, ....,. �. - , :fix,`-
HRA OPERATING BUDGET
1996
ACCOUNT DESCRIPTION BUDGET
AREA WIDE
AREA WIDE
4107 ADMIN C
BUDGET '1997
PERCENT
1997 INCREASE/
BUDGET (DECREASE)
HARGES 243,322 250,621 3
LEVEL TEXT TEXT AMT
1 ADMINISTRATIVE SERVICES (1996 X 3 %)
244,737
ADMIN OVERHEAD (1996 X 3%) 3,409
MICRO COMPUTER CHARGE (1996 X 3 %) 746
MINI COMPUTER (1996 X 3 %) 1 729
PERSONAL SERVICES
4220 OFFICE SUPPLIES
LEVEL TEXT
1 AGENDA PREP
250,621
- ----- -- - - -- ----- - - - - - -- --- ---- - - - ---
243,322 250,621 3
250 250
4221 OPERATING SUPPLIES 400
LEVEL TEXT
1 CORP REP FACT /MN FACT BOOK
FILM
FILM PROCESSING
400
TEXT AMT
250
250
TEXT AMT
100
100
200
400
--- -- - ---- -- -- --- ---- - -- -------
* SUPPLIES 650 650
-- -- --
4330 PROF ESSIONAL`SERVICES 237,500 3050000
28
LEVEL TEXT
1
TEXT AMT
AUDIT FEES
2,500.
LEGAL'(KNAAK; INCLUDES CHRYWD APPEAL)
15,000
TIF DISTRICT REV/EXP ANALYSIS
15,000
LAKE POINTE MARKETING /BUSCH
10,000
SCHOOL DISTRICT AGREEMENTS
500
NONPROGRAMMED STUDIES
25,000
NONPROGRAMMED APPRAISALS
15,000
NONPROGRAMMED ENV. AUDITS
10,000
NONPROGRANKED RELOCATION ASS.
10,000
SEH (LAKE POINTE FINAL DESIGN CONTRACT)
200,000
BRUCE A. LEISCH (FAST LURE WELL TESTING)
2'000
305,000
4331 DUES $ SUBSCRIPTIONS 425 165
61-
LEVEL TEXT
1
TEXT AMT
CORPORATE REPORT
25
TWIN CITIES BUSINESS MONTHLY
20
HRA OPERATING BUDGET
BUDGET 1997
PERCENT
1996 1997 INCREASE/
ACCOUNT DESCRIPTION BUDGET
BUDGET
(DECREASE)
CITY BUSINESS
NAHRO DUES (DACY)
25
BUILDER MAGAZINE
15
80
165
4332 COMMUNICATIONS 875
675
23-
LEVEL TEXT
1 POSTAGE
TEXT ANT
500
PHONE
175
675
4333 TRANSPORTATION 600
600
LEVEL TEXT
1
TEXT AMT
APA OF NAHRO CONFERENCE
600
600
4334 ADVERTISING 18,000
17,000
6—
LEVEL TEXT
1
TEXT AMT
FRIDLEY VIDEO /BROCHURES
15,000
LEGAL ADS FOR TIF DISTRICTS
2,000
17,000
4335 PRINTING & BINDING 2,230
2,950
32
LEVEL TEXT
1
TEXT ANT
COPIER ALLOCATION
1,450
ANNUAL REPORT IN CITY NEWSLETTER
1,500 ;,•
2,950
4336 INSURANCE, NON— PERSONNEL 9,045
8;214
9—
LEVEL TEXT
1
TEXT AMT.
ESTIMATE FROM FINANCE
8,214
8,214
4337 CONFERENCES & SCHOOLS 1,600
1,600
LEVEL TEXT
1
TEXT AMT
LUNCH AND MEETING REIMBURSEMENTS
_ 500
CONFERENCE LUNCHES
100
APA CONFERENCE REGISTRATION
500
MISCELLANEOUS,
1,600
+338 UTILITY SERVICES 3,300
3,500
6 .
LEVEL TEXT
TEXT AMT
1 LAKE POINTE ELECTRICITY FOR IRRIGATION
500
LAKE POINTE WATER CHARGES
3,000
3,500
a I'
HRA OPERATING BUDGET
1996
ACCOUNT DESCRIPTION BUDGET
4340 SRVS CONTRACTED NON -PROF 96,250
LEVEL TEXT
1 COURIER SERVICE
LAKE POINTE MAINTENANCE SERVICE
FRANK'S LAWN MAINTENANCE
LAKEPOINTE SPRINKLER MAINTENANCE
BUDGET 1997
PERCENT
1997 INCREASE/
BUDGET (DECREASE)
31,750 67-
TEXT AMT
250
21,000
500
10,000
31,750
4341 RENTALS
4346 MISCELLANEOUS 37,829 125,121 231
LEVEL TEXT
TEXT AMT
1 MCGLYNN'S PAY AS YOU GO EXPENSE 92,918
PFW /OSBORNE CROSSING PAY AS YOU GO EXPENSE 9,285
SCOTT LUND PAY AS YOU GO EXPENSE 6,178
BOB SCHROER /EAST RANCH ESTATES PAY AS YOU G0 16,740
125,121
4350 PAYMENTS TO OTHER GOVTS 315,046 315,827
LEVEL TEXT
1 SCHOOL DISTRICT REFUNDS TEXT AMT 315,827
315,827
------------
* OTHER SERVICES 8 CHARGES 722,700
------------ -----
812,402
-- - - -- --
12
4510 LAND 335,000
651,000
94
LEVEL TEXT
1, ADDITIONAL PAYMENT FOR CHERRYWOOD'APT
APPEAL
TEXT AMT
651,000
651,000 -
4530 IMPS OTHER THAN BUILDING 25,170
15,000
40-
LEVEL TEXT
1 PLAZA TREE REPLACEMENT
TEXT AMT
REPLACEMENT DECORATIVE LIGHTS
10,500
40500
15,000
- --- -- - - - --- ------
* CAPITAL OUTLAY 360,170
- -= - -- - - - --
666,000
- - -85
AREA VIDE 1,326,842
1,729,673
.30
• - ---- -- - - --- -
'�*'�' AREA WIDE 1,326,842
--- - -- - - --
10729,673 .y - --
-30
-- -- -- - -- --- -
"**" AREA WIDE 1,326,842
---- -- ----- -------
1,729,673
---- --
30
LEGAL SERVICES FOR THE HRA
HOUSING FUND
Casserly Molzahn
m un
Amount
$ 5,000
Expended
Budgeted
OPERATING FUND
$20,000
Casserly Molzahn
$51,309 '
$40,000
Bama Guzy
$ 8,859 2
$10,000
Holstad Larson
- 0 -
- 0 -
HOUSING FUND
Casserly Molzahn
$
8,032
$ 5,000
Barna Guzy
$
1,930
$20,000
A
4997 POTENTIAL EXPEN ES
1. Street lights - Highway 65 to East Moore Lake Drive $250,000
2. Decorative lights - Osborne Road request $ 76,000 *
3. "City of Fridley" sign - Mississippi Street/University Avenue To be determined
4. Decorative banners - Mississippi Street $ 10,000
Date: April 10, 1997
To: HRA Commission Members
From: Craig Ellestad, Accountant
Subject: Additional Expenses Needing Approval
VENDOR
Bob's Produce
Busch + Partners
CEI Convention Services
Employee Relations Club
Fastsigns
Focus News
Focus News
Focus News
National City Bank
Rapid Printing
SAC
File:\EXDATAXHRAXMI SC\ADD- EXP.xis
DESCRIPTION
Remodeling Fair Box Lunches
Marketing Brochure Inserts
Remodeling Fair Booths
Remodeling Fair Pop
Remodeling Fair Banners
TIF #16 Legal Notice
TI F #15 Legal Notice
TI #15 & #16 Legal Notice
Tax Reporting
Remodeling Fair Signs
97 Chamber /Community Map
AMOUNT
597.73
1,400.00
2,204.55
77.00
185.31
120.40
114.80
238.00
102.28
15.13
150.00
Total: $5.205.20
MEMORANDUM
HOUSING
M-THE
REDEVELOPMENT
DATE: April 4, 1997
AUTHORITY
TO: William Burns, Executive Director of HRA6-
FROM: Barbara Dacy, Community Development Director
SUBJECT: Fridley Executive Center Update
MEPC is. currently working with two potential office users for the Fridley Executive
Center site. One user, which has recently surfaced in the last week, is desiring
approximately 400,000 square feet of corporate headquarters and research and
development office space. MEPC is preparing a site plan and rendering, and is
scheduling a meeting with the user in the early part of next week.
The second user is continuing to express interest in the site, and MEPC is in the midst
of proposing a package to this user as well. Approximately 200,000 - 300,000 square
feet of office is being contemplated by this user.
Work continues on the inserts for the programming brochure. Merrill Busch and I hope
to accomplish the drafts of the inserts in the immediate future. One of the inserts will
contain a map of the intersection improvements which has been requested by one of
the potential users for review.
No action is required by the HRA at this time. The current Contract for Exclusive
Negotiations, however, does expire in August of 1997.
BD /dw
M -97 -164
MEMORANDUM
HOUSING
I
REDEVELOPMENT
AUTHORITY
DATE: April 4, 1997
TO: William Burns, Executive Director of HRA AR /to--
FROM: Barbara Dacy, Community Development Director
SUBJECT: Update on Street Light Issues
1. Bob Schroer's request for street lights along Osborne Road
Bob Schroer and I met on March 27, 1997 to review a potential survey (see attached) to
business owners along Osborne Road from East River Road to University Avenue. The
intent of the survey is to determine if other property owners would be interested in
installing the double ball decorative lights along Osborne Road, similar to the
Mississippi Street project.
The proposed cost of the lights for the project would approximate $152,000. A question
is contained in the survey as to how much the property owners would be willing to pay
in an assessmentlor the lights.
The survey will be on Bob's Produce stationary and will be mailed this week. I
anticipate that Mr. Schroer may request the HRA to pay 50% of the project costs
($76,000) and ask the property owners to pay the remaining 50% ($76,000).
John Flora suggests that a special lighting district be established so that the owners
would be assessed the cost of electricity charges. The amount of charges would be
nominal, spread over 13 properties.
2. Proposed street lights along T H 65 from Lake Pointe i� #erSectlon to East Moore
Lake Drive
In 1987, . the HRA authorized the installation of streetlights along T.H. 65 from the Lake
Pointe intersection to East Moore Lake Drive (see minutes attached). The cost of the
Street Light Issues
April 4, 1997
Page 2
lights was approximately $155,000. Current estimates for installation of the typical 40
foot street light standard that MnDOT would require along a trunk highway is
approximately $4,000 per standard. This could equate, depending on the spacing
requirement of the standard, to an expenditure of $300,000 - $400,000.
Staff has instructed SEH to include the installation of conduit in the plans and
specifications; however, staff has not authorized them to include the cost of the street
light standards in the bid package. Whether the HRA should spend $300,000 -
$400,000 on street lights needs to be evaluated against other priorities. Further, the
City Manager has requested that the item be reviewed by the City Council. In the
meantime, staff has identified four or five different street light standards for the HRA
and City Council to evaluate.
No action is required at this time by the HRA.
B D /dw
M -97 -165
Mt --P-27-1997 15 : ,
- CITY OF Fr^< I DLE`i b12 5'71 12e7 P . 02/03
April , 9997
Dear
The area around Osborne Road has seen a lot of activity In the last few years, both new
construction and remodeling. I think youll agree that our businesses, collectively, form a
unique neighborhood in Fridley, .and provide vital services for employees and residents
in the. area. I want to do everything in my power to assure that my business continues to
grow and that the area around me does too.
One way to improve our neighborhood and make it more attractive is to provide
decorative street lights, similar to what has been done in other parts of the community
(Mississippi Street and East Moore Lake Drive). If you haven't seen these lights at night,
drive by and you'll observe that the lights provide a warm atmosphere and extra comfort
for customers. sND EE.S
I am thinidng that the lights would stretch from East River Road, in front of Super
America, along Osbome Road east of UryAvenue, in front Of the Jiffy Lube and
strlp center. According to the City, this proms old cost $152,000.
I would like to find out however how you fed, . Pleas ®take a fey
following questions Ifyouroitid5 ?k,�iY. P
coil ine at G�/94 . Yetum theme P-0, inhe self a
ejn.v�eo Eby p��,t j�,d�1ihs�ve ��a'tistaf tiie
Y�I 11J� ain. fir+ 7��.$sst "`ie F "i-�
Ttrank you for your help. z. L
Sin ly,
Schroer
Bob's Produoe'Cowell
:5
s
•. r
..,.ate` - _
1.:
:r.the
fly -'? -lg 15:?, CIT" OF FRIDLE`r' 12 ' 7 1 _ 7 r. 11z,, /07,
SURVEY
1. Installing double ban decorative stnd tights along Osbome Road is a good idea.
_ Strongly Agree
_ Agree
Strongly Disagree
Disagree
_ No comment
2. If you marked 'Strongly Disagree" or "Disagree ", please indicate why:
3. 1 would be willing to help pay for the cost of installing the lights:
_ Strongly Agree
Agree
_ Strongly Disagree
Disagree
No comment
4. 1 would be willing to pay the following amount to help pay for the lights:
--a. $4,000 - $8,000
b. $8,000 - $12,000
--S. . $92,000 or more
b. 1 would prefer to make the payment as follows:
a. Assessed overa specfic time frame like 10 years
b. ' one lump su<n pajm nt
s�
TOTAL P.03
o L
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 12 1987 PAGE 16
Mr. Rasmussen asked if the HRA should be doing any kind of PR regarding this
impending lawsuit to protect their interests.
Mr. Newman stated the subject was raised at the last City Council meeting
about whether the City and the HRA should go on the offense and issue their
own press release.
(Mr. Prairie left the meeting at 10:15 p.m.)
Ms. Schnabel stated if people are- concerned about what is going on with that
property and rumours are flying around, maybe there was a need for some type
of press release and maybe Staff should start preparing for an article.
Mr. Newman stated he would caution the HRA members that if they do get served
with any legal oaoers that they note the date and the time and forward the
papers to him immediately. If any of the HRA members feel the need for
any further discussion, he /she should let fir. Robertson know and they will
schedule a meeting.
Ms. Schnabel stated she would like to know whenever any of the HRA memhers
was served with papers, because she felt that was something the other members
should be aware of right away.
5. CONSIDERATION OF A RESOLUTION 11 REQUESTING THAT THE FRIDLEY CITY COUNCIL
1 Pri lr%nT 7r
F.11
Mr. Robertson stated this project was originally started to improve the easterly
entrance to the Lake Pointe project.- As the HRA remembered, it was the project
that was required to, not only improve the entrance visually and functionally,
but was also required-by` the Indirect Source Air Quality Permit to'expedite
the traffic flow to reduce -the -air pollution.
Mr. Robertson stated the - basic -cost was not to exceed 51,661,784.40; however,
there were some additional costs the HRA might wish to consider in the future
on decorative lighting. He would also-call the HRA's attention to the memo given
to the HRA members regarding an informational meeting that was held the pre-
vious evening at City Hall with the people who -own homes along Old Central Ave.
beyond the intersection.
Mr. Robertson stated tor. Flora was at the meeting to give some technical
background.
Mr. Flora stated that since the public hearing with the residents along Old
Central, there was some question abouf whether this was actually an acceptable
solution to the intersection at :this time. So, they are working on some
alternative solutions to satisfy some of the concerns of the neighborhood, but
they were still looking at somewhere around $1.7 million for this intersection
improvement which was designed to handle the Lake Pointe Development, Highway
65, and the future traffic upstream and downstream -from the intersection.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 12, 1987 PAGE 17
Mr. Flora stated that if the project goes, Staff has some suggestions. As
the HRA knew, they were doing a University Ave. Corridor study & in that study, they
were looking at the "Fridley look ", certain light fixtures, plantings, motif,
etc. If this was to be the Fridley look, the question was should the Fridley
1 -ook be continued to this location also. If they do that, they should look
at incorporating those types of lights, plantings, etc., into the project.
So, depending on the options, they were looking at a range of $4,000 to
$155,000 for the Fridley street lighting look.
Mr. Flora stated another item, with the Indirect Source Permit, was the Rice
Creek Road diversion. Part of that plan was that too many cars were coning
down Old Central to the Highway 65 /Old Central intersection, so the plan was
to divert the traffic from Old Central to Highway 65 through Rice Creek Road
by the Shorewood Shopping Center. That was another project that was
authorized by the HRA for preliminary plans to be prepared. At the informational
meeting with the neighborhood, the neighbors felt this was probably the first
priority because by moving the traffic off Old Central at the Old Central /Rice
Creek Road intersection, some of the concerns could be resolved more satis-
factorily. So, Staff might be coming to the HRA to do this. Right now in
round numbers, that.improvement would be $400,000. Staff was also looking
at whether they should also continue the Fridley look in this location if they do
it at the Highway 65/Old Central location. These were things the HRA would have to
decide.
Mr. Flora stated the item before the HRA at this meting was the intersection.
Per the agreement with Mr. Weir.-and the HRA and the City was supposed to work to
get this intersection done this construction season. The City was moving
forward, but they needed some approval from the HRA.
Councilperson Schneider stated he did not know if the City Council would hold
a public hearing or not, but he would be more comfortable if this resolution
came to the City Council without the HRA specifically requesting the City
Council not to hold a public hearing.
Mr, Qureshi stated. there;; was no legal.requiremnnt. -to hold a public hearing,
but certainly the HRA or the City Council could hold a public hearing if they
wished. The HRA could delete that I wording from the resolution.
Mr. Flora ,stated he would also like some kind of concensus from the-HRA so
they can tell the consultant he can put the lighting into the plan so they
can be identified and the costs provided rather than doing it later. This
was certainly going to be another one of the focal points of the City.
Ms. Schnabel stated her problem was that as far as she knew the HRA had not
made any decision yet on the lighting along University Ave.
Mr. Robertson stated the,HRA did.approve,the lighting at the.intersections,
but not along the Corridor. After Staff received the recommendations frnm
the Barton- Aschmann firm, staff did recommend a style of lighting standards.
It was
HOUSING .& REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 12, 1987 PAGE 18
his understanding that when the HRA approved the Staff report in December,
they approved that style of Iightinq_-standards for the intersection. The
VRA_then hired Mr. Ellers, a former NSP lighting engi -neer, to specify the
lighting details, not only for the intersections, but for the entire corridor
to make sure all the lighting fit so they wouldn't have to redo the intersections
to match the corridor at some later time. They now have a design and layout
for the entire University Ave. corridor for the approved lighting style plus
preliminary recommendations for the commercial frontage road lighting. They
have not yet brought this to the HRA.
Mr. Robertson stated they were now beginning preliminary engineering desiqns
for Old Central'-and Highway 65 /Lake Pointe Drive entrance. Did
the HRA wish to make a commitment at this tine to adopt those styles of lighting
standards for this intersection also?
MOTION BY MR. RASMUSSEN, SECONDED BY MR. MEYER, TO ADOPT RESOLUTION NO.
HRA 2 -1987, DELETING THE LANGUAGE, "AND WAIVE THE PUBLIC HEARING RELATING
THERETO ".
UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE
MOTION CARRIED UNANIMOUSLY.
The HRA members agreed Staff could proceed to incorporate the lighting design
into the plan all the way to Rice Creek Road, but that the HRA would like to
see all the plans before it is approved.
6. CLAIMS (1565- 1581):
MOTION BY MR. RASMUSSEN, SECONDED BY MR. MEYER, TO APPROVE THE CHECK
REGISTER AS PRESENTED.
UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE
NOTION CARRIED UNANIMOUSLY.
7. OTHER BUSINESS:
a. Update on Mississippi St. Intersection
Mr. Qureshi stated the intersection plans have been prepared. The
County originally had plans to do the East River Road /Rice Creek Bridge,
but they ran into some technical difficulties. Since the Mississippi Street
plans are ready, the County wishes to proceed on it this year if
possible. This plan was presented to the City Council and the members
of the City Council had some concerns. They recognized the improvements
would help move the traffic through the intersection, but their concern
was to make sure the neighborhood behind Holly Center still had access
to this road and be able to use it safely. The City Council requested
the County to look at the possibilities of providing some control of
the intersection in this location. The City received a letter from the
County meting that when this development comes and they can identify a
cross intersection either at 2nd Street or.at the westerly entrance to the
Holly Shopping Center, they will assist in providing a signal at that
4odation.' With that commitment, he felt the City Council would be amiable
to the County proceeding with the project.
MEMORANDUM
DEVELOPMENT DIRECTOR
DATE: March 28, 1997
TO: William Burns, City Manager 4 A f/
FROM: Barbara Dacy, Community Development Director
Grant Femelius, Housing Coordinator
SUBJECT: Anoka County HRA Technical Advisory Meeting
On March 26, 1997 the Anoka County HRA held a technical advisory committee
meeting at the Anoka County Library in Blaine. We want to alert you about two issues
which were discussed during the meeting that potentially impact our housing programs.
Administration of CDBG Housing Program
County staff in attendance indicated that since Fridley broke away from ACCAP at the
end of last year the County's cost to administer the housing rehabilitation has
increased The impact may beeves greater if Blaine choose' s: #o do the same later this
year. From the County's perspective, the issue is whether �s efficient and cost
effective to allow participating communities to administer their own`CDBG housing
programs or if it should be centralized under one agency.
Fridley staff explained that the decision to use one agency (e.g. CEE) was based in
large part on the ability to place all program administration under one roof to better
serve our residents: In addition, the move also cut in half the administrative costs to the
HRA.
The County, nonetheless, contends that Fridley's decision has significantly reduced the
volume of applications for ACCAP which' administers the County's program: This
reduction in volume has increased the County's; costs because they must make up the
shortfall ACCAP also had staff.in attendan'ce`who asserted that Fridley essentially
conducted an unfair process when we solicited .
Memo to Bill Burns
March 28, 1997
Page 2
proposals to administer the program last fall. ACCAP stated the Fridley HRA never
asked ACCAP for a proposal to administer all of the housing programs, only the grant
program. They feel that CEE's existing relationship with the HRA was an unfair
advantage, and that ACCAP could have administered the loan program.
The group did not seem to reach any conclusions, however it was very clear that
County staff was not happy with Fridley's decision. The County may ultimately decide
to prohibit cities from administering their own CDBG housing programs.
1998 CDBG Funding Process
Over the last several years HUD has expresses concerns about how the CDBG is being
operated. Apparently, HUD feels that the funds are not being spent very effectively
and further that too many projects are funded. Recently, HUD became emphatic that
changes must be made to the program before the Fiscal Year 1998 program begins
(July 1, 1998 through June 30, 1999).
Although not specific, the County believes HUD wants more of a competitive type
program similar to Hennepin and Ramsey counties. Under this formula each city
applies on a competitive basis for funding. No funding is guaranteed, however the
amounts awarded are significantly higher.
During the discussion the County tried to solicit suggestions on a potential program
format. Most in attendance agreed that the public service program is worthwhile, but
should really be administered by the County. This would reduce the burden on public
service agencies to prepare applications, make presentations, etc. It might, however,
eliminate some agencies from consideration for funding. Representatives from the
larger communities felt it would be difficult to find, support because of the potential loss
of dollars.
In the coming months the County should be providing additional clarification on the
CDBG application process.
Post Script
By the tone of the meeting, it was clear that the County administration and ACCAP
were still upset with the City regarding the housing programs. ACCAP did express their
concerns to us last Fall when we awarded the bid to CEE. Nonetheless, the City and
HRA should not feel ashamed for selecting the contractor who can offer the best
service for the best price. The process was fair No action is needed at this. time;
however, the City should continue_to a&644 f'or the service which maximizes funds
for rehabilitation instead of adminis iative d6s no matter if it is a County or City
program.
GF/
M -97 -152
Fridley Loan Program Summary
4/3/97
City Wide Loans
Name
Address
Amount
Date
Closed
Type of
Property
1 Moses
5180 Hughes Ave.
$
12,922
1/7/97
Single - Family
2 King
375 67th Ave. NE
$
11,306
1/28/97
Single - Family
3 Larson
6130 6th St. NE
$
4,670
2/25/97
Single - Family
4 Diedrich
46 66th Way NE
$
8,375
3/11197
Single- Family
5 Elverud
221 Rice Creek Terr.
$
4,839
3/12/97
Single - Family
Sub -Total
$
42,112
Hyde Park Loans
Date Type of
Name Address Amount Closed Property
1 Anderson 6061 -65 3rd St. NE $ 6,621 1/28/97 Duplex
2 Monson 6046 2 -1/2 St. NE $ 2,235 4/1/97 Single - Family
Sub -Total $ 8,856
7
CA1997 LOAN ACTMTY REPORT
Grand Total
$ 50,968
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: April 4, 1997
TO: William Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Update on 1s' Time Homebuyer Program
Last month we learned that the Minnesota Housing Finance Agency (MHFA) had
denied our application for assistance under the Minnesota Cities Participation Program.
Since 1993, Fridley has received an allocation of mortgage revenue bond funds to
provide financing to first -time homebuyers.
MHFA staff informed us that although our application was post- marked on February
14th which was before the deadline (February 18th), it was not received at MHFA
offices until February 19, 1997. The slow delivery was due to the President's Day
holiday on February 17, 1997. MHFA refused to accept the application .because state
law prohibits them from taking applications beyond the application deadline. The
application was mailed the day after HRA authorization to apply on the 13th.
Since MHFA's decision, we have been in contact with Anoka County officials about
participation in similar program. This Spring Anoka County will offer its own program
mortgage program to communities within the County who are included in the MHFA
program. The County's program has the same eligibility criteria as MHFA ($43,650
maximum income limit and $95,000 purchase price limit) and would also set aside an
amount of funds for purchase /rehabilitation projects. The County's program would be
available on a first -come, first - serve basis. Funds should be available sometime in
May 1997.
No action is needed at this time. While we are incredulous at MHFA's determination
(even the IRS takes tax returns postmarked on April 15th), the Anoka County program is
an acceptable alternative. Participating in the County program will not cause a county
tax levy.
GF/
M -97 -159
KRASS
MONROE
KRASS MONROE, P.A.
■ James R Casserly • A T T O K N E 1' S AT LAW -
Direct Dial (612) 885 -1296
MEMORANDUM
TO: City of Fridley
Attn: Barbara Dacy
FROM: James R. Casserly
RE: Linn Project Subsidy Analysis
Our File No. 9571 -7
DATE: April 1, 1997
INTRODUCTION
The Linn Companies is proposing the complete renovation of Dick's Tires and a new retail
facility of 7,980 square feet immediately west of Dick's Tires on 57th Avenue. To facilitate
this redevelopment, two parcels with existing structures must be acquired and the structures
demolished. In addition, substantial site work will be required. The Redeveloper. has asked
the Authority to assist with the site acquisition and preparation costs. We have been asked
to review the requested assistance to determine if it is necessary and within the Authority's
guidelines. Our conclusion is that the request is essentially a redevelopment cost and not a
subsidy to the Redeveloper as provided for in the Authority's TIF policies and that the
assistance is needed to facilitate the project.
ANALYSIS
In our analysis we have either prepared or reviewed the following:
1. Schedule A, a Source and Use of Funds
2. Schedule B, a Cash on Cash Return Analysis without tax increment assistance
3. Schedule C, a Cash on Cash Return Analysis with tax increment assistance
.SUITE 1100 SOUTHPOINT OFFICE CENTER • 1650 WEST 82ND STREET • BLOOMINGTON, MINNESOTA 55431 -1447
TELEPHONE 612/885.5999 • FACSIMILE 612/885.5969
4. Schedule D, Assumptions and Cash Flow for the tax increment district
5. Schedule E, Proposed Revenue Note
Schedule A is self - explanatory and has attached to it a very detailed analysis of project costs.
Schedule B is an analysis showing the average annual cash on cash return to the Redeveloper
for its equity invested in the project. There are a number of variables which can substantially
change the results shown in the analysis. We have used the Redeveloper's lease rates of $12
per square foot for the new retail center and $9 per square foot for the renovated tire center.
These are triple net lease rates. The operating expenses average about $10,000 per year,
which includes a replacement reserve. We are showing a principal on the first mortgage of
$1,075,000. The Redeveloper would undoubtedly prefer to secure a higher mortgage to
reduce the equity contribution to the project. Given these assumptions, the average annual
cash on cash return is 7.02 percent. This is not a reasonable rate of return and, in our
estimation, the project would not proceed based on these assumptions.
Schedule C is identical to Schedule B in all respects except that there are revenue note
payments by the Authority to the Redeveloper. These revenue note payments are a result of
tax increment being generated from the increased market value the Redeveloper has
generated. In Year 2 the revenue note payment is $12,901 and for the 11 succeeding years
it would be $25,802 with a final payment in the last year (not shown on the schedule) of
$12,901. In total, there would be Authority payments on the revenue note of $306,566, which
has a present value in 1997 of $175,000. With the addition of the revenue note payments,
the average annual cash on cash return is 11.26 percent. This too is a very mediocre, if not
a poor rate of return, for a commercial project. The rate of return can be enhanced by
securing a mortgage with a longer amortization, assuming no vacancy (not unreasonable if
there are only two users on long term leases) and the assumption of lower operating expenses
or less project costs. Finally, a different, inflation factor could affect rental. income. The
project appears more reasonable if we assume that there will be an inflation in market value
over the years and that the project debt is being amortized in a reasonably short period of
time.
Schedule D are the tax increment assumptions and cash flow which shows the potential
available tax increment for the project and the potential available tax increment for the
Authority given the current statutes and market values.
Schedule E is the proposed revenue note, which has a beginning balance of $175,000. The
total payment of $306,566 is the same sum as that available for the project shown on
Schedule D.
CONCLUSION
In addition to reviewing a cash on cash return analysis, there is a second way to review the
amount of assistance needed for the project. As a practical matter, a commercial center of
the type being proposed would not want to pay more than $17.50 or $18 per square foot of
building for site costs. If this were true, then the site cost should be approximately $299,000
($16,620 x $18). Instead, the actual site cost is in excess of $461,000. The difference of
$162,000 represents a redevelopment cost and is not a developer subsidy. A subsidy would
occur if there was a write -down below market value. To account for unexpected costs, which
always seem to occur, we have suggested the sum of $175,000 as the amount of Authority
assistance. This is the amount that is reflected in the revenue note payments shown on
Schedule E and in the assistance available for the project shown on Schedule C. As indicated
in the Introduction, because of the redevelopment costs and the low rate of return, it is most
unlikely that this project would proceed without the Authority's assistance.
JRC/kh
Encl
SOURCE OF FUNDS
Debt (9.5 %, 15 year,
Equity
SCHEDULE A
FRIDLEY/LINN PROJECT
1 st Mortgage)
USE OF FUNDS (see Attachment III for Detailed Analysis)
PROJECT FIRST COSTS
Land and Land Related Expense
Purchase/Renovation - Service Center
Building/ Site Hard Costs - Retail Center
Project Soft Costs - Service & Retail
1,075,000
491,200
TOTAL: 1,566,200
461,250
560,000
464,000
50.150
TOTAL: 1,566,200
ATTACEMNT III
LINN '57 PROJECT COSTS
I- LAND COST Not including Soft Costs for Le ai Title
C °sing, ace aneous Fees, a c.
A- Siwek Land - Lots 5 & 6 at $6.67 per square foot
Base Cost - $56,000.00
Taxes /Assessments - $10,250.00
Demolishing Home -
TOTAL, $ 8,400.00
$ 74,650.00
B. LaDuke Land - Lots 3 & 4 at $7.00 per square foot
Base Cost - $70,000.00
Demolishing Home - $ 8,400.00
TOTAL
$ 78,400.00
C- Holiday Land - Lot 2 at $6.50 per square foot
Base Cost (Calculated) $36,400.00 TOTAL $ 36,400.00
D. Holiday Land - hots 7_13 at $6_50 Per square foot
Base Cost - $254,800.00 TOTAL 2
(Calculated) $ 54 , 800.00
E. Correction (Import of Soil, filling, compaction,
grading, etc.) on Lots 2 through 6
Base Cost - $ 17,000.00 TOTAL
$ 17,000.OQ
TO'T'AL LAND COST AND LAND RELATED EXPENSE - $ 461,250.00
LINN ' 57 PROJECT COSTS
Page 2
ATTACHMENT III
II. PURCHASE RENOVATION OF 8,640 S -PT SERVICE CENTER
A. Purchase of Building (No Land)
B. Renovation /Improvement Expense -
* Permit /Plan Check Fees - $ 3,400.00
* site (Asphalt, Curb, Fenc
Landscaping, irrigation)
* Structure Improvements
* Imagine (glass /painting)
* Mechanical /Electrical
* Demolition /Disposal
* Interior Finishes (Tile,
Walls, FRP, Acoustical)
* Equip (Hoists /Compressor)
* Job Superv, OH & Profit
!e,
$40,950.00
$61,640.00
$23,190.00
$83,900.00
$13,000.00
$46,420.00
$27,500.00
$27,000.00
TOTAL PURCHASE /RENOVATION SERVICE CENTER -
$ 233,800.00
$ 327,000.00
$ 560,800.00
III. CONSTRUCTION LEASEHOLD COST - 8,090 S .FT. RETAIL CENTER
TOTAL RETAIL CENTER HARD COSTS = $464,000.00
INCLUDES THESE HARD COSTS DOES NOT INCLUDE THESE COSTS
General Conditions
Excavation /Grading /Backfill
Fence, Landscaping, Irrigation
Storm Water Retention
MasonWConcrete
Utilities Connections
Steel /Erection (Joist- Deck - Lentils)
Lumber and Carpentry
SS Metal (Canopy)
Roof /Scuppers /Hatch
Electric and Fixturing
Plumbing and Fixturing
HVAC /RTU's /Curbs /Ducts
HM /SC Doors and Hardware
Concrete Curbs /Asphalt
StoreFront Windows /Doors
Painting /Caulking
Gypsum Board /Insulation
Ceramic Tile /Acessories (RR)
Acoustical Ceiling /Grid
Carpet /VCT /Base
Other Tenant Improvements
Clean- up /Duzupster /Disposal
Pylon Structure /Wiring
Supervision /Overhead /Profit
Architect /Engineer
Phase I /II Assessment
Survey /Staking /As -guilt
Soil /Compaction Testing
Legal Expenses
Title Insurance
closing Costs
Utility Connection Fees
Park Dedication Fees
Occupancy Permits
SAC/WAC Charges
Leasing Commissions
Taxes During Construction
Builders Risk Insurance
Interim Interest - constr.
Contingency/Miscellaneous
LINK `57 PROJECT COSTS
Page 3
IV- PRO�'ECT SOFT COST EXPENSES
(Iriclvd�a ��,
ATTACHMENT III
SERVICE CMM%R & RETAIL CENTER
Architectural /Engineering
Environmental Assessment Reports
A11 Survey Work including Staking /As -Built
Soils Testing /Compaction Testing
Legal Expenses (Contracts, Leases, Agreements)
Title Insurance and Land Closing Costs
Interim Interest Expense
Financing Fees
utility Connection Fees
Park Dedication Fees
Occupancy permits
SAC /WAC Charges
Leasing COMMIssions
Taxes During Construction
Builders Risk Insurance
Escrow Against Landscape Completion
$ 80,150.00
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D
Original Market Value
CITY OF FRIDLEY, MINNESOTA
SCHEDULE D
ASSUMPTIONS
Land sq. ft. Land M.V. Bldg M.V. Total M.V.
23- 30 -24 -23 -0028
5,600
15,400
0
15,400
23- 30 -24 -23 -0029
11,200
20,400
26,500
46,900
23- 30 -24 -23 -0030
11,200
20,400
35,500
55,900
23- 30 -24 -23 -0031
28,000
92,400
201,000
293,400
23- 30 -24 -23 -0032
5,600
14,700
0
14,700
61,600
163,300
263,000
426,300
Original Tax Capacity
4.600%
1996/1997 Tax Rate
Administrative Fees
Inflation
P.V. Rate
12/01/97
Estimated Market Value
New Construction
Rehabilitation
Estimated Tax Capacity
Estimated Taxes
Construction
Valuation
Taxes Payable
7,980 sq. ft. @ 65.00 per sq. ft.
8,640 sq. ft. @ 50.00 per sq. ft.
4.600%
16,620 sq. ft. @ 3.11 per sq. ft.
1997
1998
1999
518,700
432,000
426,300
19,610
1.181680
10.000%
0.000%
8.500%
950,700
43,732
51,677
r e
LINN1 PREPARED BY KRASS & MONROE name i47 1
CITY OF FRIDLEY, MINNESOTA
SCHEDULE D
CASH FLOW
-INN1 PREPARED BY KRASS & MONROE
nA ln-1 1o7
Original
Tax
Estimated
Tax
Estimated
Less:
Available
Available
8.500%
P. V. Rate
Date
Capacity
Capacity -
Tax
Increment
Admin
Expenses
For
Project
For
Authority
SemiAnnual
Cumulative
Balance
Balance
06/01/97
19,610
19,610
0
0
0
0
12/01/97
19,610
19,610
0
0
0
0
0
06/01/98
19,610
43,732
0
0
0
0
12/01/98
19,610
43,732
0
0
0
0
0
06/01/99
12/01/99
19,610
19,610
43,732
43,732
14,252
14,252
1,425
12,827
0
0
11,322
_ 0
11,322
06/01/2000
19,610
43,732
14,252
1,425
1,425
12,827
12,827
0
0
10,860
22,181
12/01/2000
19,610
43,732
14,252
1,425
12,827
0
10,417
32,599
06/01/2001
12/01/2001
19,610
19,610
43,732
43,732
14,252
1,425
12,827
0
9993
9,585
42,591
52,176
06/01/2002
19,610
43,732
14,252
14,252
1,425
1,425
12,827
12,827
0
9,194
61,371
12/01/2002
19,610
43,732
14,252
1,425
12,827
0
0
8,820
70,190
06/01/2003
12/01 /2003
19,610
19,610
43,732
14,252
1,425
12,827
0
8,460
8,115
78,651
86,766
06/01/2004
19,610
43,732
43,732
14,252
14,252
1,425
1,425
12,827
12,827
0
7,784
94,550
12/01/2004
19,610
43,732
14,252
1,425
12,827
0
0
7,467
102,017
06/01/2005
19,610
43,732
14,252
1,425
12,827
0
7,163
109,179
12/01/2005
06/0112006
19,610
19,610
43,732
14,252
1,425
12,827
0
6,871
6,590
116,050
122,641
12/01/2006
19,610
43,732
43,732
14,252
14,252
1,425
1,425
12,827
12,827
0
6,322
128,962
06/01/2007
19,610
43,732
14,252
1,425
12,827
0
0
135,026
12/01/2007
06/01/2008
19,610
19,610
43,732
43,732
14,252
1,425
12,827
0
5,064
5,817
5,580
140,843
146,423
12/01/2008
19,610
43,732
14,252
14,252
1,425
1,425
12,827
12,827
0
5,352
151,775
06/01/2009
19,610
43,732
14,252
1,425
12,827
0
0
5,134
156,909
12/01/2009
19,610
43,732
14,252
1,425
12,827
0
4,925
161,834
06/01/2010
12/01/2010
19,610
19,610
43,732
43,732
14,252
1,425
12,827
0
4,724
4,531
166,558
171,089
06/01/2011
19,610
43,732
14,252
14,252
1,425
1,425
11,540
1,287
3,910
176,000
12/01/2011
06/01/2012
19,610
43,732
14,252
1,425
0
0
12,827
12,827
0
0
0
12/01/2012
19,610
19,610
43,732
43,732
14,252
14,252
1,425
0
12,827
0
0
0
06/01/2013
19,610
43,732
14,252
1,425
1,425
0
0
12,827
12;827
0
12/01/2013
06/01/2014
19,610
19,610
43,732
14,252
1,425
0
12,827
0
0
0
0
0
43,732
14,252
1,425
0
12,827
0
0
441,827
44 183 306,566
91,078
175,000
0
-INN1 PREPARED BY KRASS & MONROE
nA ln-1 1o7
CITY OF FRIDLEY, MINNESOTA
SCHEDULE E
PROPOSED REVENUE NOTE
'Beginning Accrued Principal Interest Interest Total Ending
Date Balance Interest Payment Rate Payment Payment Balance
08/01197
175,000
0
0
8.500%
02/01/98
175,000
0
0
8.500%
08/01/98
175,000
7,437
0
8.500%
02/01/99
182,437
7,754
0
8.500%
08/01/99
190,191
470
4,744
8.500%
02/01/2000
185,447
4,946
8.500%
08/01/2000
180,501
5,156
8.500%
02/01/2001
175,345
5,375
8.500%
08101/2001
169,970
5,604
8.500%
02/01/2002
164,366
5,842
8.500%
08/01/2002
158,525
6,090
8.500%
02/01/2003
152,435
6,349
8.500%
08/01/2003
146,086
6,619
8.500%
02/01/2004
139,468
6,900
8.500%
08/01/2004
132,568
7,193
8.500%
02/01/2005
125,375
7,499
8.500%
08/01/2005
117,876
7,818
8.500%
02/01/2006
110,058
8,150
8.500%
08/01/2006
101,909
8,496
8.500%
02/01/2007
93,412
8,857
8.500%
08/01/2007
84,555
9,234
8.500%
02/01/2008
75,322
9,626
8.500%
08/01/2008
65,695
10,035
8.500%
02/01/2009
55,660
10,462
8.500%
08/01/2009
45,199
10,906
8.500%
02/01/2010
34,292
11,370
8.500%
08101/2010
22,923
11,853
8.500%
02/01 /2011
11,070
11,070
8.500%
15,191
190,191
0
0
0
0
8,083
7,881
7,671
7,452
7,224
6,986
6,737
6,478
6,209
5,927
5,634
5,328
0
0
0
0
12,827
12,827
12,827
12,827
12,827
12,827
12,827
12,827
12,827
12,827
12,827
12,827
5,010
12,827
4,677
12,827
4,331
12,827
3,970
12,827
3,594
12,827
3,201
12,827
2,792
12,827
2,366
12,827
1,921
12,827
1,457
12,827
974
12,827
470
11,540
116,375
306,566
175,000
175,000
182,437
190,191
185,447
180,501
175,345
169,970
164,366
158,525
152,435
146,086
139,468
132,568
125,375
117,876
110,058
101,909
93,412
84,555
75,322
65,695
55,660
45,199
34,292
22,923
11,070
(0)
LINN1 PREPARED BY KRASS & MONROE 04/01/97