HRA 10/09/1997 - 6281HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, OCTOBER 9, 1997
7:30 P.M.
WILLIAM BURNS
EXECUTIVE Df ECTIOR OF HRA
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, OCTOBER 9, 1997 7:30 P.M.
AGENDA
LOCATION: . Council Chambers (upper level), Fridley Municipal Center
CALL TO ORDER
ROLL CALL
APPROVAL OF MINUTES: August 14, 1997
CONSENT AGENDA:
Revenue and Expenses ............................ 1 -113
ACTION ITEMS:
'1'resentatio6 by Dave Jellison;'* .MEPC AtTj h Priip6rties
-,
.,Request for Letter of SupportJor WFA- Appico# ............ .
I/ ...3 -3G
Dennis Homel
,Xeview Proposed W algreens Development Plan; Northeast .
.....'...4 -41
Comer of University Avenue and Mississippi Street
esolution Authorizing Execution of Development Contract; ., 5 - 5F
erald_Paschke
Agreement with Twin Cities Business Monthly ............ 6-613
Yy Remodeling Planbook ......... ............................... 7-7D
V/ ousing Replacement Program Update .......................... 8
Margaret Metzdorff's Resignation ............................. .
.9
OTHER BUSINESS:
ADJOURNMENT
CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
AUGUST 14, 1997
W--,l A • •.� •
Acting Chairperson Meyer called the August 14, 1997 meeting to
order at 7:45 p.m.
ROLL CALL:
Members Present: John Meyer, Duane Prairie, Jim McFarland
Members Absent: Larry Commers, Virginia Schnabel
Others Present: Barbara Dacy, Community Development.: Director
William Burns, Executive Director
Jim Casserly, Financial Consultant
Rick Pribyl, Finance Director.
APPROVAL OF JULY 10 1997 HOUSING AND REDEVELO MFTTT AUTHORITY
MINUTES•
AND
APPROVAL OF JULY 21 1997 JOINT CITY COUNCIL AND HOLTSTNC AND
REDEVELOPMENT AUTHORITY MT S:
MOTION by Mr. McFarland, seconded by Mr. .Prairie, to approve the
July 10, 1997 Housing and Redevelopment Authority minutes and the
Joint City Council and Housing and Redevelopment Authority.minutes
as written.
UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER
DECLARED THE MOTION ARRIED UNANIMOUSLY.
CONSENT AGENDA•
1. "SOLUTION ADOPTING HRA TAX LEW -FOR TAXE PAYABLE IN 3=998
Mr. Prairie requested this item be removed from the consent
agenda.
2. AUTHORIZE EXECUTION OF METROPOLITAN COUNCIL TAX BASE.
REVITALIZATION A CO 7nT'r GRANT AGREEMENTS FOR DEALERS
ANUFACTURING
Ms. Dacy stated that she has received the companion agreement from
the Department of Trade and Economic Development for HRA approval.
Copies have been distributed to the Commissioners.
HOUSING & REDEVELOPMENT AUTHORITY MTG. AUGUST 14, 1997 PAGE 2
Ms. Dacy submitted additional expenditures for authorization in a
memo dated August 14, 1997 to be included'-in the consent agenda.
MOTION by Mr. McFarland, seconded by Mr. Prairie, to approve the
Consent Agenda, items #2 and #3,as presented in the staff memos
with the additional expenditures as presented in the August 14,
1997'memo and the State of Minnesota Department of Trade and
Economic Development Business and Community Development Division
Grant Agreement #CCGP -97- 0005- Z- FY -97, and to remove item #1 from
the Consent Agenda.
UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER
DECLARED THE MOTION CARRIED UNANIMOUSLY.
ACTION ITEMS:
•fr: "ILei WupE 04.0Ll a 0tA"J k&11a l""__ �iJ� 'lr_�a�a/i����J -- -- -- u:L ---- --
-- - - — pus -•-
Ms. Dacy stated that the proposed request is to extend the
Contract for Exclusive Negotiations to November 1, 1997. The
extension would allow MEPC to, pursue approval from MEPC's Board
for a one story complex of two 50,000 square foot buildings for a
total of 100,000 square foot building on the west end of the site
for a high tech company. The extension will also enable the HRA
to prepare an outline of the business terms for a development
contract.
Ms: Dacy.stated that at. a.recent joint meeting with.the City
Council., it was determined that a one story building at the west
end.of the site would attract a high quality user and would still
maintain adequate area for a multi -story office user.
Mr. Meyer asked what type of control the HRA has over the use of..
the buildings five or ten years from now.
Ms. Dacy stated that the zoning district provides the City with
total control over the development and the specific uses. The
master plan approved last year by the Council specified the uses
which were permitted and not permitted. Secondly, the development
contract will be recorded against the property and will also
contain requirements about the development.
Mr. Meyer stated he was convinced that MEPC has done everything it
could to develop the site, but at the same time he sees this
proposal as a step backwards when the metro area is in a
renaissance of development.
Ms. Dacy stated that the international contacts MEPC has was an
asset for the Lawson proposal, even though they chose St. Paul.
Lawson is a tenant in a MEPC building in Dallas and was also
building a campus in London. Although the original master plan
HOUSING & REDEVELOPMENT AUTHORITY MTG. AUGUST 14, 1997 PAGE 3
was the ultimate, the consensus from the joint meeting was that
the tech flex building would not be a detriment, and would attract
a high amount-of employment.
Mr. Prairie asked if there were two office contacts.
Ms. Dacy stated that was correct.
Mr. Meyer asked what MEPC plans to do in November.
Ms. Dacy stated that they will propose the tech flex building to
their board in September, which will give us the time in October
to negotiate a development contract.
Mr. Meyer asked if the HRA would have to approve the plans.
Ms. Dacy stated that was correct.
Mr. Casserly stated that the development agreement will allow the
construction of 100,000 square foot building with the remainder of
the site preserved for a multi story office user.
Mr. Meyer stated that he was concerned about giving the impression
that spec buildings are acceptable, and they may end up not being
fully occupied.
Ms. Dacy stated that the market information.presented by the
developer and others is that the tech flex market is very strong
and the concerns that the HRA has may not materialize. Further
the development contract will contain protection'for the HRA and
has to be approved by the HRA.
Mr. Meyer asked if MEPC is the exclusive agent.
Ms. Dacy stated that is correct, but the development contract
would ultimately replace the exclusive negotiation agreement, and
would have to be .approved first.
TIO by Mr. McFarland, seconded by Mr. Prairie, to approve
Resolution Authorizing Execution and Delivery of A First Amendment
to the Contract for Exclusive Negotiations by and between the
Housing and Redevelopment Authority.
UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER
DECLARED THE MOTION CARRIED UNANIMOUSLY.
Mr. Meyer stated that this resolution is similar to the resolution
passed.in 1997 for the revolving loan program for housing
rehabilitation programs.
HOUSING & REDEVELOPMENT AUTHORITY MTG. AUGUST 14, 1997 PAGE 4
Mr. McFarland asked how the proceeds of the loan were invested.
Ms. Dacy stated that a cash flow analysis was prepared to govern
how the loan would be drawn to serve. the loan requests. Both the
Council's loan and HRA funds are used to serve the program; how
the funds are invested she cannot answer. The City's loan has
reduced the necessity to use HRA funds to support the program.
Mr. McFarland asked if the loans can be sold on the secondary
market.
Ms. Dacy stated there is a cost to do that.
Mr. Casserly stated the cost is in the discount rate, and it is
not advantageous for the HRA to do that.
MOTI by Mr. McFarland, seconded by Mr. Prairie, to approve
Resolution Adopting HRA Tax Levy for Taxes Payable in 1998.
Mr. Meyer stated he voted against the resolution last year. While
he supports the concept to improve the housing stock, he objects
to some of the program requirements like the income amount and
also use of public funds for some of the improvements.
Mr. Prairie stated that he voted against the resolution last year
philosophically. Since then, the program has been initiated. To
discontinue the program now would unravel the program.
Mr. Meyer concurred with Mr. Prairie. He noted that two of the
members of the Commission were absent who supported the resolution
last year. To vote against the resolution without all of the
members present did not seem fair.
Ms. Dacy noted that the loan program is modeled on the State's
MHFA rehab program including income limits and the type of
eligible improvements.
Mr. Burns stated that as a practical matter, most of the
improvements are code related
UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER
DECLARED THE MOTION CARRIED UNANIMOUSLY.
INFORMATION ITEMS:
6. HIGHWAY 65 STREET LIGHTS
Ms. Dacy stated that the motion to approve the installation of
street lights along Highway 65 failed on a tie vote at the July
28, 1997 City Council meeting. The lights will therefore not be a
part of the project. MnDOT has agreed to replace the dilapidated
portions of the guard rail.
,.�
HOUSING & REDEVELOPMENT AUTHORITY MTG. AUGUST 14, 1997 PAGE 5
Mr. Meyer asked if the chain link fence along University Avenue
could also be addressed with the State.
Mr. Burns stated that the Council is evaluating removing the fence
on the east side pending contact of the insurance consultants
regarding the liability issues raised if it is removed.
Mr. Burns stated that he is working on a business retention survey
which will include questions regarding city issues and
redevelopment issues. The survey may be a phone survey or mail
survey with intense call backs, but that has yet to be determined.
Mr. Meyer asked if the grass maintenance will also be addressed by
the Council.
Mr. Burns stated that it is also a high priority, and as we search
for additional revenue sources, the image or appearance issues are
a top priority for expenditure.
7. PASCHKE TIF REQUEST
Ms. Dacy stated the construction has progressed well since last
reported. The development contract is being prepared by Mr.
Casserly and will probably be on a future agenda.
MOTION. by Mr. McFarland, seconded by Mr. Prairie, to adjourn the
meeting at 8:50 p.m.
UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER
DECLARED THE MOTION CARRIED UNANIMOUSLY. a
Respe,et-f illy Submitted,
Barbara Dacy
Acting Recording
TO: FRIDLEY H.R.A
FROM: CITY OF FRIDLEY
RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES
SEPTEMBER 1997
Account Vs for
HRA's Use
ADMINISTRATIVE BILLING:
ADMINISTRATIVE PERSONAL SERVICES
ADMINISTRATIVE OVERHEAD
COMPUTER OVERHEAD
(For Micro & Mini computers)
TOTAL ADMINISTRATIVE BILLING : 460- 0000 - 430 -4107
OPERATING EXPENSES:
USPS - POSTAGE 262- 0000 - 4304332
USPS - POSTAGE 460-0000- 430 -4332
US WEST - PHONE 460-0000-430 -4332
TOTAL OPERATING EXPENSES:
BENEFITS EXPENSES:
CITY OF FRIDLEY - HEALTH INS
CITY OF FRIDLEY - DENTAL INS
CITY OF FRIDLEY - LIFE INS
262 -0000- 219 -1001
262 -0000 -219 -1100
262 -0000- 219 -1200
TOTAL BENEFITS EXPENSES:
TOTAL EXPENDITURES - SEPTEMBER 1997
File: \MATA\HRA\TIFU7BILLxis Details
1
Account Vs for
CR
City's Use
Code
20,394.75 101 -0000 -341 -1200
H1
284.13 101- 0000 - 336 -3000
HA
20626 101 -0000- 336 -3000
HA
01 _I El
20.36 236-0000 - 336 -3000 HA
170.80 236-0000- 336 -3000 HA
23.08 236-0000 - 336 -3000 HA
363.18 236-0000- 219 -1001 11
22.53 236 -0000- 219 -1100 12
14.00 236 -0000- 219 -1200 13
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im
MEMORANDUM
HOUSING
i
REDEVELOPMENT
DATE: October 2, 1997
AUTHORITY
TO: William Bums, Executive Director of HRA 444
FROM: Barbara Dacy, Community Development Director
SUBJECT: Presentation by Dave Jellison; MEPC American Properties
Dave Jellison will be present at Thursday's meeting to discuss the impacts of the recent
decision by MEPC American Properties to sell its United States portfolio. News of the
transaction appeared in the Saturday, September 27, 1997 edition of the Star Tribune
(see attached article). The Executive Director and I have met with Dave Jellison and
Leslie Jowette and they have assured us that they will continue to abide by existing
agreements and pursue development of the Fridley Executive Center site. Dave will
explain in more detail the background and the impacts of the sale.
Also discussed with Dave and Leslie is the status of the pending contacts. A 64,000
square foot two -story office user continues to express interest in locating on the site. A
proposal was sent by MEPC to this company two weeks ago and they will be contacting
MEPC in the near future about their decision. In addition, MEPC has made a proposal
to a 60,000 square foot user for the one -story tech flex building. Given the activity for
the office and the tech -flex buildings, interest on the part of commercial and hotel users
is also increasing. A national restaurant company has been to the Fridley site. on two
occasions and MEPC will also be receiving a response from a hotel user as well.
No action is needed by the HRA at this time.
BD /dw
M- 97-411
,onomy Real estate
Gross domestic product IMIEPC Properties
The GOP measures all the and i
gam.;.
bmwhftt,�ddS to sell U.S. holdings
regardless of ownership. :: ,
6% valued at 1 billion $
0
1994 1995 1996
Source: US Dept; of Comm(
Associated Press
Indeed, lower energy prices
field the advance in a price meas-
tre tied to the GDP to a mere 1.8
)ercent annual rate, the smallest
n five years.
"Times are good and should
:ontinue to be so into the near
attire,` said economist Jerry Ja-
inowski,president of theNation-
1 Association of Manufacturers.
urn to GROWTH on D3 for
- Analysts are divided about the
future.
Health care }
Company, once based in Minneapolis,
owns sites in Twin Cities, Rochester
By David Phelps
Star Tribune Staff Writer
MEPC American Properties, a
formerly Minneapolis -based
company that still owns com-
mercial, industrial and retail
sites in the Twin Cities and
Rochester, is selling its entire
U.S. portfolio, valued at more
than $1 billion.
British parent MEPC PLC
said it has decided to divest it-
self of its American subsidiaries
while the U.S. real estate market
is robust'and because it wants
to concentrate on its United
Kingdom holdings. It also is
selling its Australian properties.
MEPC American's Twin Cit-
ies properties include the Min-
neapolis West Business Center,
in St. Louis Park at the intergec-
tion of Interstate Hwy. 394 and
Hwy. 100. -The site .consists of
eight office buildings, a distribu-
tion center and Chili's Grill and
Olive Garden restaurants. Plans
for another 10 -story office tower
in the complex are active.
MEPC also owns the 765,000 -
square -foot Apache Mall in
Rochester, sections of business
parks in Eagan, Golden Valley,
Eden Prairie and Fridley and an
office complex in Bloomington
called the Norman Center.
Founded in Minneapolis in
1974, MEPC moved to Dallas in
1981 when the Sun Belt was
booming. Its portfolio now in-
cludes 13 million square feet of
retail, office and industrial
space in 11 cities, includingAt-
lanta, Los Angeles, New York
City and Washington, D.C.
Turn to MEPC on D3 for.
= Goldman Sachs will handle
the transactions.
:al Center loses- large client
i miles north of Farmington.
"To have the clinic take their
ttients out is a surprise, ". said
)b Johnson, chief executive at
)uth Suburban. "For their sys-
m to be less affiliated with the
immunity is not a surprise.
ieir physicians don't live here,
A they have no involvement in
e community."
Dr. Stuart Menaker, River Val -
7's lead physician, said that the
clinic made the decision in order
to best serve the estimated
20,000 patients it sees annually.
. "This is not about us or where
we live; it is about providing the
best possible care to patients," he
said. "As long as we were admit-
ting only to South Suburban
Medical Center, more than one-
half of this community would not
even see us as physicians because
their first choice for a hospital
was Fairview Ridges."
Menaker said that Fairview
provides a broader range of ser-
vices, including a larger number
of staff specialists, more birthing
rooms, perinatal care and 24-
hour respiratory care coverage.
Turn to HOSPITAL on D3 for:
—South Suburban is pursuing an
affiliation with the Benedictine
Health Systenz.
Hpple season.
Apple Computer Inc.
said Friday it would open a
new ad campaigns with two
60- second spots Sunday
evening during the TV pre-
miere of the hit movie "Toy
Story" on ABC.
The Academy Award
winning animated film was
developed by Pixar Anima-
tion Studios Inc., where Ap.
ple co- founder Steve Jobs
also is chairman and CEO.
The Apple ad effort,
"Think Different," is the
first work byApple and the
TBWA Chiat /Day agency in
more than a decade. It de-
veloped Apple's Super Bowl
ad in 1984, that introduced
the Macintosh personal
computer.
"This ad is just the be-
ginning of a major market-
ing campaign to let our cus-
tomers know that Apple is
coming back and returning
to those core values which
made it great," Jobs said in
a statement.
Apple declined to pro-
vide further details.
— Reuters
MarAxt review .
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• a
..., . ....
market
Rep. Martin Sabo, D- Minn.,
who last year proposed legislation
directing'- the• National Science
I=oundation to block the contract
award to NEC. also hailed the
ruling. He said it "tells Japanese
companies in no uncertain terms
that we will not allow them to
hurt a vitally important U.S. in-
dustry by unfairly and illegally
dumping supercomputers in the
U.S. market."
NEC had sought unsuccessfuly
to persuade an international
trade judge in New York to place
the Commerce Department in-
quiry in the hands of an indepen-
dent master. NEC said it appealed
the judge's ruling Friday to the
U.S. Circuit Court of Appeals and
also would appeal the ITC's rul-
ing to the U.S. Court of Interna-
tll•....u..l,. - ♦ \__ J .
chusetts -based subsidiary, HNSX
lT l661l llll
trade spat. he climate research
Supercomputers, said in a state -
center announced after last
ment. He contended that the
month's Commerce Department
commission ruling was based on
ruling that it was canceling the
Cray's "artificial definition" of
procurement.
the supercomputer industry that
Bill Buzbee, the director of
ignored non - vector systems that
NCAR's scientific computing divi-
can perform as well as-vectors.
sion, said Friday that the center
Cray executives acknowledged
-now is leaning toward buying a
Fridav that sales of vector super -
highly parallel microprocessing
computers are growing more
system made by either Silicon
slowiv than those of other high-
Graphics, IBM Corp. or the Hew -
performance computer products
lett- Packard Corp. With that sys-
produced at its Eagan and Chip-
tem, he said, "your get a lot more
pewa Falls, Wis., plants and by
for the buck."
its parent, California -based Sili-
Buzbee said the center bought
con Graphics Inc., which bought
two vector supercomputers from
Cray last year.
Cray while awaiting the outcome
And it appears that Cray won't
of the antidumping case to try to
be selling many more vector su-
retain its world leadership in cli-
percomputers to the National
mate research, but that its re-
Center for Atmospheric Research
search still was set back about
in Boulder, Colo., whose award of
two years by the legal dispute.
HOSPITAL from D1
South Suburban Medical
is losing its largest client
Even though the clinic would
be sending hospital admissions
out of the community, he said,
Farmington would ultimately
benefit * economically 'because
more residents will remain as pa-
tients with the clinic.
"With this change, residents of
Farmington and the surrounding
area will bring their outpatient
health care back to this commu-
nity," Menaker said. ..
"If the reason was indeed pa-
tient choice," Johnson said, "the
clinic would give their patients
the freedom to choose between
South Suburban Medical Center
and other hospitals."
But Menaker said that option
was not practical.
"I would hope that Mr. John-
son would talk about his plans for
his future and let us talk about
our future," he said.
Meanwhile, independent
South Suburban is pursuing an
affiliation with the Benedictine
Health System, which is part -
owner of St. Francis Regional
Medical Center in Shakopee. Du-
luth -based Benedictine is affiliat-
ed with 23 health -care facilities in
six states.
Johnson said the affiliation
with Benedictine was not related
to River Valley's decision to
switch hospitals.
"To have the clinic take
their patients out is a sur-
prise. For their system to
be less affiliated u+ith the
community is not a sur-
prise. Their physicians
don't live here, and they.
have no involvement in
the community.»
— Bob Johnson, chief executive,
South Suburban
................. ...............................
"We have been working with.
Benedictine for the past six
months to establish this collabo-
rative relationship," he said.
He said he hopes to have the
agreement with Benedictine fi-
nalized by December. Under the
agreement, the hospital hopes to
improve and expand its services
and reduce the need for residents
to travel outside the Farmington
area for health care.
In 1995, South Suburban had
about 1,100 inpatient admissions,
according to data filed with the
Minnesota Health Department.
The hospital also provides long-
term care. home health care and
senior independent -living facil-
ities.
TWO TRt - - ;ROWS
CANALI l2B ;NAND
=' LEATHER1 _ VWNGS'
_ FORMEN &WOMEN
MEPC from DI
The company said it has
more than $60 million in indus-
trial developments underway in
Minneapolis and Dallas.
P'r'esident David Gruber said
the sale of the U.S. assets was
timed to capitalize on** the
strong U.S. real estate market
and the availability of capital.
Goldman Sachs has been
retained to handle the transac-
tions.
Gruber said that the com-
pany has been growing at a
compounded annual rate of 35
percent over the past four years
and that future growth should
remain in double -digit figures.
"Our high- quality portfolio
is well positioned to show
excellent financial return in the
years ahead," Gruber said.
V zt-ED ?.
Call 1900896 -2323
Call for answers to dues from today's, yestei
day's or last Sunday's crossword. 95 cents per
mhAe. Tach -tone or
rotary dial phone. Stm'e
5UM67 tr w1._y .1iM WJ
11.11-21,12 117 l'\
1 4) III I %I I -
•'97XK8 Coupes ............. 1;n stock
•'97 XK8 Conwrta l......... 4 in Stock '
•.fist �r
MEMORANDUM
HOUSING
REDEVELOPMENT
AUTHORITY
DATE: October 3, 1997
TO: William Bums, Executive Director of HRAd4�
FROM: Barbara Dacy, Community Development Director
Grant Femelius, Housing Coordinator
SUBJECT: Request for Letter of Support for MHFA Application,
Dennis Homel
_ : y Recently, staff was contacted,bytiDeM eLdf.St Pau!- whahas an
agreement to purchasd-the Moore Lake Apartments, a 64 unit complex located
at 5701 Central Avenue and 995 Lynde Drive. Homel stated that the cun'ent
owners, 5701 General Partnership, are selling the buildings because several of
the partners want out of the group and do not want to invest additional money
into the property.
The $1.625 million sale is contingent upon Minnesota Housing Finance Agency
(MHFA) financing for both a first mortgage to acquire the property and a second,
deferred mortgage to make substantial improvements to the buildings and
grounds. The Anoka County Assessor has the property valued at $682,328.
On September 25, 1997 the MHFA gave preliminary approval for the first mort-
gage and will considera separate request for deferred financing on October 15,
1992 The deferred financing is competitive and Homcl is requesting a letter_ of
r support to forward to MHFA prior to their-October 15 meeting. He has also
inquired about HRA financing to assist with the project.
A preliminary review of his MHFA application shows the following information
about the project:
- 3
MHFA Application; Dennis Homel
October 3, 1997
Page 2
USES
Purchase Price $1,625,000
Rehabilitation $689,080
Financing and Carving Fees $31,394
Misc. Fees $23,200
Total Uses $2,368,674
SOURCES
MHFA 1s' Mortgage * $1,397,423
MHFA ARIF Loan ** $300,000
MHFA Incentive Loan * $480,000
Owner Equity $191,251
Total Sources $2,368,674
* -.Low and Moderate Income Rehabilitation Program (open pipeline funding)
** Affordable Rental Investment Fund (competitive funding)
If approved by MHFA, at least 75% of the units will have rent and income
restrictions. The remaining units will have no income or rent restrictions. * As a
practical matter most of the existing tenants probably meet the income
restrictions.
In terms of the rehabilitation work, the owner is planning to make substantial
improvements to the buildings including _replacing -all windows, repairing one of
{the roofs, replacing the siding, soffit and fascia which has deteriorated, installing
,a security system and exterior lighting, and making repairs to the interior of some
units. Total cost is estimated at $689,080.
The current owners did receive $86,000 of assistance through the old federal
Rental Rehabilitation Program which has been reduced to $50,000. Mr. Homel
is purchasing the property with his wife. MHFA will require them to form a
general partnership before any financing can be closed. Homel currently owns
several buildings in the metro area and has completed two identical
3A
MHFA Application; Dennis Homel
October 3, 1997
Page 3
purchase /rehab projects using MHFA funds within the last year. The first project,
Queens Lane Apartments in Anoka, involved the purchase and rehabilitation of 44
rental units for a total of $830,000. The project was completed in 1996 and Homel
acted as the developer and general contractor. The second project, Carroll Court
Apartments in St. Paul, involved the purchase and rehabilitation of 58 rental units for
$1,100,000. The project was completed this year and Homel acted as the general
contractor.
With regard to HRA financing, the owner could apply for the Last Resort Rental Loan
Program should MHFA be unable to fund his entire deferred loan request of $300,000.
The program, which the HRA established in February 1997, provides assistance up to
$10,000 per unit (maximum of $50,000 per structure)
on a deferred loan basis. In this case the maximum assistance would be $100,000
because there are two separate addresses. The funds would have to be used for
actual rehabilitation costs and not soft costs. The loan would be due upon sale of the
property or 20 years whichever comes first. The resolution (excerpt attached) which
authorized the Last Resort Rental Program states that the HRA must approve all loans
in excess of $10,000.
Based on the information provided _so far -we believe this is a good project which will
both improve the condition of Moore Lake Apartments and help provide affordable
housing. The owner appears to have a track record owning rental property and working
with MHFA's programs.
Staff will invite Mr. Homel to the HRA meeting on October 91 to be available for any
questions. -
Recommendation
Staff recommends that the HRA authorize staff to prepare a- letter (copy attached) in
support of Mr. Homel's MHFA application.
GF/
M- 97-412
5
P �f
CITYOF
FRIDLEY
FRIDLEY MUNICIPAL CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY. MN 55432 • (612) 571 -3450 • FAX (612) 571 -1287
October 10, 1997
Katherine Hadley, Commissioner
Minnesota Housing Finance Agency
400 Sibley Street, Suite 300
St. Paul, MN 55101 -1998
Dear Commissioner Hadley:
On behalf of the Fridley Housing and Redevelopment Authority I am writing to express
support for the application submitted by Dennis Homel for the purchase and
rehabilitation of the Moore Lake Apartments, 5701 Central Avenue and 995 Lynde
Drive in Fridley.
The preservation of our housing stock has been identified as a high priority. In fact,
since 1995 we have spent more than $2.0 million in HRA funds on housing
rehabilitation activities. Our emphasis over-the last two years has been on single - family
rehabilitation programs, however there is strong need for upgrading our multiple .family ..
housing stock.
The City of Fridley is a participant in the Livable Communities Program and has
adopted a Housing Action Plan. Over 56% of our existing multiple family housing stock
is considered affordable. Almost 80% of the units were built before 1980 and of this
number at. least 50% are more than 30 years old. Many of these buildings have
suffered from deferred maintenance and are in of significant rehabilitation and
modernization.
We believe Mr. Homel's project is important in preserving and maintaining our
affordable housing. On behalf of the Fridley HRA I strongly encourage your agency to
give full consideration to this request
Should you have any questions, please feel free to contact Barbara Dacy, Community
Development Director, at 572 -3590 or Grant Femelius, Housing Coordinator, at
572 -3591.
Sincerely,
William W. Burns
Executive Director of HRA 3C
Moore Lake Apartments
Dennis Homel
1 Partridge Lane
St. Paul, Minnesota 55127
Phone 483 -4239 Fax: 766 -8065
Grant Fernelius
City of Fridley
6431 University Ave. N. E.
Fridley, MN 55432
Re: Moore Lake Apartments
Dear Mr. Fernelius:
As you are aware, the Minnesota Housing Finance Agency is in the process of reviewing and
hopefully approving my request for a 1 st mortgage and rehab funds for Moore Lake Apartments.
Enclosed is a list of additional information MHFA is requesting that you may be able to provide to
process the financing. Also, enclosed is a work scope of rehab proposed for the property.
Minnesota Housing Finance Agency has disbursed mog-of its rehab .funds to the flood victims and
has a huge request for the balance of their rehab. funds, They have asked --e to- request
mformation fo =refiali funds= the`G'�= pfFridley may-have�in�leu of -Ioan request -for
$300,000:00: - -.
Your earliest help will be appreciated as the rehab request at MHFA is scheduled to be decided by
October 15th.
Pce S'ely,
Homel
K711
I
SCHEDULE A
Page 7
flow after the rehabilitation work is complete.
For loans which are wisecrcred, the borrower
must have the ability to repay the loan based on
their own personal finances.
For loans which are secured, the property must
show positive cashflow after the rehab is
completed.
Equity_ The borrower must have sufficient equity in the
Property, if the loan exceeds $5,000.
Property Type= Non owner - occupied, residential rental properties
located in the City of Fridley.
5. Program Specifics
None.
6. General Requirements
This program is available to any rental property owner in the City of
Fridley who meets the guidelines of the programs described in Section
1413)(1-7).
7. Improvements
Borrowers shall use funds under this program to make permanent
repairs and improvements to their properties. Improvements shall be
limited to those defined in the most current version of the Minnesota
Department of Public Service Rental Energy Loan Fund Procedural
Guide.
C. LAST RESORT RENTAL LOAN PROGRAM
L Loan Description
This program is designed for those rental property owners who cannot
qualify for any other Authority loan or grant programs. Funding will
be provided in the form of a deferred payment loan up to $10,000 per
unit, not to exceed $50;000 per structure.
For the first ten years, 2% (simple interest) charged on
3E
SCIIEUULL' A
( page S
the principal balance_
After ten years, no interest shall be charged_
The Last Resort Loan is due and payable when the home is sold or
after twenty (20) years from the date of the loan note, whichever comes
first. The Last Resort Loan may be prepaid at any time. The
Authority, may at its discretion, extend the maturity date of a Last
Resort Loan.
2. Funding Source
The Last Resort Rental Loan Program will be funded solely by the
Authority.
3- Program Administrator
The Center for Energy and Environment will market, a dmi
close all Last Resort Rental Loan program Loans_ mster and
4. Qualifications
Income Limits: No income limit.
Underwriting: This is a last resort program and as such
applicants shall be selected for this program only
if they are unable to qualify for financing through
other Authority programs. The Authority and
the Program Administrator shall work in co-
opemtion to identify all possible resources -
before an applicant can be considered for this
program.
Equity: The Last Resort Loan shall be secured with a
separate mortgage.
Property Type: Non - owner- occupied, residential rental properties
located in the City of Fridley -
5. Pro— -ram Specifics
f' The Last Resort Rental Loan Program is designed specifically for rental
Property owners who can't qualify for a loan or a grant_ Because there
3F
SCHEDULE A
Page 9
are numerous variables which are used when underwriting a multiple
family rental loan, it is difficult to-list all of the scenarios which would
qualify an applicant for the Last Resort Rental Loan Program_
In general, the following criteria will be used as primary factors:
a. Borrowers who have a negative cashflow on their property.
b. Borrowers who have no equity in their property and the Loan -
to -Value Ratio (with the new debt) which exceeds 100 %, but is
not greater than 125%.
C. Borrowers who have had credit problems, such as slow
payment. This program is not available to borrowers with
Pending bankruptcies or foreclosures, unpaid judgements or
liens, or non - payment of real estate taxes /assessments.
6. General Requirementg
This program is available to rental property owners on a case -by -case
�.: basis- The Authority Board of Commissioners shall specifically approve
all Last - Resort Rental Loans in
excess of $10, 000-
r.
7• Improvements
Borrowers shall use funds under tlus program to make permanent
repairs and improvements to their properties. Improvements shall be
limited to those defined in the most current version of the MHFA
Rental Rehabilitation Loan program procedural Guide.
1FRIDLEYIHO US9710EMSCH ED-A
3G
MEMORANDUM
HOUSING
REDEVELOPMENT
DATE: October 2, 1997
AUTHORITY
TO: William Bums, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Review Proposed Walgreens Development Plan; Northeast
Comer of University Avenue and Mississippi Street
In August 1997, Walgreens contacted City staff about their desire to construct a free-
standing, 13,905 square foot Walgreens store on the Northeast Quadrant site.
Walgreens stated that they would complete all the acquisition, demolition, and
relocation expenses for the project.. The proposed building is about 3,000 square feet
larger than the existing building currently occupied by The Gym and Fridley Video.
Because the proposal is a substantial modification to the previously- approved plan,
algreenss filed the app ication to amend ao rov rl velopment plan in the S -2,
Redevelo ment District which the roe is now zoned) on September�12,1997. The
- - -- - -- - - - - - --
,\_matter will be_considered b the Planning.Commission of its October 15, 1997 meeting_
and the City Council on October 27-,! 997, - The 60 day action law requires City action
on the application by November 11, 1997.
The proposal is smaller in size than the originally approved proposal (13,905 square
feet versus 25,000), and as a result, the amount of tax increment generated from the
site is reduced significantly in comparison to the original project ($13,000 per year
versus $46,000 per year).
BASIS FOR REVIEW
The property is zoned S -2, Redevelopment District, which requires review not only by
the Planning Commission and the City Council, but also by the Housing &
2
Walgreens Development Plan
October 2, 1997
Page 2
Redevelopment Authority to insure compatibility with the redevelopment objectives for
the area. The review and action by the HRA fulfills the ordinance requirement.
ANALYSIS
The proposal includes only one of the two single family homes originally slated for
redevelopment. The home on Mississippi Street will be acquired in order to install a
driveway as far eas► of the University Avenue intersection as possible. It was
suggested to Walgreens to build a bigger facility with another entity closer to the
original project size. Walgreens has a standard approach to its sites and they have a
strong standing policy not to share sites with other entities. It is also important to
Walgreens to have a drive- through prescription window as part of their facility design.
Similar stores have been built in White Bear Lake and Circle Pines.
Staff has the following concerns regarding the application:
1.. Walgreens' proposal is atypical suburban "cookie - cutter" approach to an infill site
located in the city's "downtown" area. The project would be more appropriate on
-
commercial property further ngrth on University Avenue (the southeast comer -of 73"x. T`
Avenue and University Avenue, for example),
2. There is a significant amount of.under - utilized space around the building. For
example, as one drives into the site at the easterly driveway, there is a very large
expanse of parking lot area. In addition, the site does not include one of the lots
originally rezoned to S -2, Redevelopment District. (the lot facing 660' Avenue).
3. The project is half the size of the originally- approved project in 1991. Because the
land area is under -used, tax increment revenue is significantly reduced.
4. The application also raises concern about the ultimate "vision" for this comer of the
intersection. The traffic on University Avenue coupled with the recent.construction
by Rottlund at Christenson Crossing is no doubt an attractive feature for a
commercial entity on the property. A single user, however, is an under - utilization of
the site. A mixed use project, either of commercial users or a combination of
residential and commercial uses is more appropriate at this site. In fact, the mixed
use approach may cause the need to reevaluate the size of the redevelopment
project area.
Walgreens Development Plan
October 2, 1997
Page 3
The Planning Commission will be conducting a public hearing on the land use issues on
October 15, 1997. The neighborhood may be supportive of the project because it is
less intensive than the original proposal. The goals of the redevelopment project,
however, should not only include sensitivity to the neighborhood, but also appropriate
utilization of space to maximize development potential.
TAX INCREMENT DISTRICT IMPLICATIONS
The. site is located in Center City TIF District #1. The district expires in 2009. The HRA
should be aware that if the proposed development does not proceed and another
project is proposed next year or thereafter, the HRA may need to decertify this portion
of TIF District #1 and create a new district in order to provide enough time to provide
adequate assistance for a redevelopment project.
RECOMMENDATION
Staff recommends that the HRA recommend to the City Council denial the Walgreens
proposal at this location because the project under - utilizes the redevelopment area, and
is contrary to the redevelopment plan of the Center City area. The City would like
Walgreens to consider other vacant sites in the area for the development.
BD /dw
M- 97-413
ITW��
67 AVE NE
SAYELLUE W NE
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=G1 - Localeusiness
G2 - Gereral Business
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■� GR1 -oral Office
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M3 - Qrtdoor kterrsiae Heavy Ind
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l P - Public Facilities
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= PoGHT4)F-WAY
G'AI&W 67 AVE NE
GOAVE NE
PANNE
FOURNESMErE
63MEIE
FZOA 974)7, Plan Amendment
Sef Y1W Development, on behalf
of Walgreen's, requests that the
master plan in the S-2
Redevelopment District be
amended to allow construction
of a 13,000 square foot retail
fadlity.
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The data presented here is sd*d to charge:
The City of Fridey %WI trot be respartsibie for
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MEMORANDUM
HOUSING
I:�►iD
REDEVELOPMENT
DATE: October 2, 1997
AUTHORITY
TO: William Bums, Executive Director of HRA 4116-
FROM: Barbara Dacy, Community Development Director
SUBJECT: Resolution Authorizing Execution of Development Contract;
Gerald Paschke
BACKGROUND
At the June 1997 HRA meeting, the HRA authorized staff to prepare a development
contract providing up to $60,000 of tax increment assistance via a Limited Revenue
Note for soil.correction assistance in order to complete a 12,000 square foot addition to
the building at 7989 Main Street N.E. The 12,000 .square foot addition will be used as
an expansion for a tenant in the existing building. The tenant is Dugas and Bowers,
which is a•plating and chrome polishing manufacturing company. They currently are
located in an 18,000 square foot tenant space in the existing building.
PROPOSED CONTRACT
The proposed contract requires completion of the project prior to issuing a Limited
Revenue Note in the amount of $60,000. The note requires two payments per year to
the developer beginning on August 1, 1 9 nr4inn ^n The.
amount of each payment is defin by the note to be the lesser amount of 90% of the
tax increment ge�r the arescribed amount in the note of $6 242. On the
maturity date of the note on August 1, 2005, if there is any unpaid portion remaining,
the note will be deemed to have been paid in full.
The 12,000 square foot addition will provide $71,809 in tax increment by the end of the
district in 2007 (present value amount). The project cost of the 12,000 square foot
addition is estimated to be approximately $304,000 (approximately $25.00 per square
foot). The addition brings the total value of the building to $1,244,650. Using the
.. 5
Development Contract; Jerry Paschke
October 2, 1997
Page 2
proposed assistance amount of $60,000 is within the typical HRA guideline of 5% of the
project cost. The site is already located in TIF #3.
At time of HRA consideration in June 1997, staff indicated that work had begun on the
project prior to approval and execution of the development contract. Subsequent to the
June meeting, there was concern about the developer's ability to comply with required
stipulations and building code requirements of the building permit. An update was
provided to the HRA at the August meeting (see attached memo). The developer is
now nearing completion of the project and is nearing the issuance of the certificate of
occupancy.
RECOMMENDATION
Should the HRA wish to approve the project, a motion to approve the resolution
authorizing the execution of the development contract is recommended.
BD /dw
M-97-4i4'-
5A
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE
CITY OF FRIDLEY
COUNTY OF ANOKA
STATE OF MINNESOTA
RESOLUTION NO.
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 FRIDLEY AND GERALD W.
PASCHKE AND ROSEMARY E. PASCHKE.
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 enter into a Contract For Private
Redevelopment (the "Contract ") with Gerald W. Paschke and Rosemary E. Paschke (the
"Redeveloper ").
Section 2. Findings.
2.01. The Authority hereby finds that it has approved and adopted a development program
known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the
"Redevelopment .Program ")pursuant to Minnesota Statutes, Section 469.001 et seg.
2.02. The Authority hereby finds that the Contract promotes the objectives as outlined in its
Redevelopment Program.
Section 3. Authorization for Execution and Delivery.
3.01. The Chairman and the Executive Director of the Authority are hereby authorized to
execute and deliver the Contract when the following condition is met:
Substantial conformance of a Contract to the Contract presented to the Authority as of
this date.
5B
Adopted by the Board of Commissioners of the Authority day of
199. -- -
ATTEST:
Executive Director
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G.W. PASCHKE
P.O. BOX 308. ROGER$, MN 55374
TELEPHONE (612( 428 -7711 FAX (612( 428 -7712
August 18, 1997
Jim Casserly
Housing and Redevelopment Authority
City of Fridley
6431 University Avenue NE
Fridley, MN 55432
Dear Jim Casserly:
This letter us written with regard to the development of the property
at 7951 Main St. NE in Fridley. This is a 12,000 sq. ft. addition to
the existing building at 7965 Main St. anal -is being built to accomodate
a tenant in the building that' needs.expansion. This tenant has been in
business in this building in Fridley for over ten years.
I am under the understanding that this. property is.in a tax increment
district which was created to assist in the development due to the
extreme soil correction required in these areas. I was also told-at
the City last fall .where - thi.s was in the plannirig, .stage. that .a -.ssis. 'Ante
Is avai:l•ab1;e
Without assistance, this project would not be developed. It is not
feasible as the income from rents would not support the costs of
development due to the soil correction needed. Actually the correction
on this property exceeds what we had originally estimated.
Enclosed are copies of cost statements, invoices and lien waivers. All
persons working on the project have and will be paid prevailing wages.
Also enclosed is the $2,500.00 application fee. If there is anything
else you will need, please call me at 428 -7711.
Since ,
er ld W. Pa e
GWP /rp
. 5E.
DATE: August 7, 1997
MEMORANDUM
HOUSING
011
REDEVELOPMENT
AUTHORITY
TO: William Bums, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
SUBJECT: Update on Paschke TIF Request
The Chief Building Official, Ron Julkowski, has reported that progress on the Paschke
construction project at 7989 Main Street is progressing better than last reported. The
contractor excavated the sewer and water connection so that a proper inspection could
occur. Also, Paschke's engineer and architect will be submitting copies of inspection
reports on the core filling of the block walls, the deck welding, and other structural
issues. By requiring the engineer and architect to submit the required 'inspection
reports, a documented file is created regarding the construction of the building in
compliance with the Building Code. The architect and engineer also become liable if
there are any problems. Paschke has also been cooperative regarding the Building
Official's requests for more information.
Jim Casserly is in the process of contacting Mr. Paschke regarding the typical
requirements of the development contract. Unless otherwise directed, the development
contract will be on the September 1997 agenda, along with the resolution authorizing
execution. Should there be further issues regarding this matter, please do not hesitate
to contact me.
BD:ls
M -97 -339
5F
MEMORANDUM[
HOUSING
FIAMIUM
REDEVELOPMENT
AUTHORITY
DATE: October 2, 1997
TO: William Bums, Executive Director of HRA
�f
FROM: Barbara Dacy, Community Development Director
SUBJECT: Approval of Publishing Agreement with Twin Cities Business
Monthly
BACKGROUND
In the September 5, 1997 mailing regarding cancellation of the September regular
meeting, I included a memo regarding a proposal by Twin Cities Business Monthly to
publish a special feature on the City of Fridley for the December issue. At that time, the
staff recommendation was to proceed with the project with the understanding that the
HRH's contribution would not exceed $5,000. MEPC would provide $5,000, and a
variety of businesses would be contacted to provide additional advertising support and
sponsorship. In order to complete the project, a minimum of $15,000 is required by
Twin Cities Business Monthly plus the potential of additional advertising.
• acel j F, I ll : J •
I contacted the Southern Anoka County Chamber of Commerce regarding their
cooperation in the project and to identify names of businesses to interview. Barbara
Warren, the President, advised me that the Chamber had just initiated an advertising
campaign of its own to publish a magazine about the Chamber and the community.
Warren was extremely concerned about going to Chamber members and the business
community twice for advertising money. She also pointed out that they postponed their
contact to the business community after the City's completion of fundraising for the
Community Education Center site.
Twin Cities Business Monthly
October 2, 1997
Page 2
MEPC American Properties has indicated a willingness to increase its sponsorship to
$7,500 to provide 50% of the minimum $15,000 required. It is therefore proposed that
the HRA provide the remaining match of $7,500. A key piece of this feature, however,
is the existence of corporate offices in the community. Barbara Warren agreed that it is
imperative the City contact Medtronic, Target, and Onan to provide either sponsorship
or advertising support for the piece.
Other business entities will also be contacted that are not Chamber members but are
located in the community and can act as advocates. For example, Ryan Companies
and Opus Corporation have completed a number of industrial projects in the City and
are well respected in the development community.
PROPOSED FEATURE
An eight page feature will be produced in the December issue which will contain six
pages of editorial and two.pages of advertising. The feature will build on the themes
established in the recent marketing brochure:. "Business Friendly Fridley: The Right
Place, The Right People"._..Appropriate representatives of theibu!A ess•c:ommunity will',
be intdNiewed, especially corporate office users such at Medtronic and Target. High .
tech companies like Micro Control Company will also be contacted for an interview.
Information and experience from theses companies and others about the work force
and Fridley as a place to business will speak volumes.
Secondly, the feature will discuss the other important factors which make Fridley a
"whole and complete community", including health care services (Unity Hospital and
Columbia Park Medical), housing variety and availability (Christenson Crossing and
Royal Oaks Court), parks and recreation services (racquetball club and City /County
services like Springbrook Nature Center), and the retail community (Holly Center, Wal-
Mart, etc.). The quality of neighborhoods and the school system will also be discussed.
Finally, there will be a piece on the Fridley Executive Center site and the various uses
proposed in the master plan.
Merrill Busch reiterates that this is a tremendous opportunity for the City to counter the
negative images that exist in the marketplace. Finally, and possibly more importantly, it
serves as a business retention tool and a way to thank existing companies for their
development and support.
.6A
Twin Cities Business Monthly
October 2, 1997
Page 3
RECOMMENDATION
Staff recommends that the HRA authorize the Executive Director to sign a publishing
agreement for $7,500 with Twin Cities Business Monthly for an eight page feature on
the City of Fridley.
BD /dw
M- 97-415
� 3
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: October 3, 1997
TO: William Bums, Executive Director of HRA 441'
FROM: Barbara Dacy, Community Development Director
Grant Femelius, Housing Coordinator
SUBJECT: Remodeling Planbook
This project was identified in the 1998 Goals and Objectives as an activity to increase
the awareness of home improvement and remodeling. The concept for the book was
borrowed.from the Longfellow neighborhood group in south Minneapolis. '
The planbook is intended to give residents ideas on improving the-typical 1950's style
rambler, the most common house design in Fridley. Many homeowners who have
participated in the loan programs or have met with the remodeling advisor seem to
express the same concerns about their homes:
1) Lack of living space and /or storage space
2) A small garage or no garage at all
3) Small kitchens and bathrooms
4) Lack of amenities in comparison to newer housing, such as master bedroom suites,
laundry facilities on the main floor and mud rooms between the garage and kitchen.
The planbook will present a range of plans from building a front entry porch to
constructing a rear "bump out" for more living space. Other plans will include re-
working the interior for a larger kitchen and adding a master bedroom suite. The
purpose is to show that there are many options on improving both the appearance and
livability of older housing. The book will also have helpful information on building and
zoning requirements, as well as information about the HRA's loan programs.
At this point Margaret Metzdorff has produced a draft outline (copy attached) and
several remodeling plans, which will be available at the HRA meeting on October 9th.
7
Plan Book Memo
October 3, 1997
Page 2
In the next month she will work on the actual text. It will probably be necessary to hire
an architect to work on the plans and drawings.
We have talked with Dave King at the Center for Energy and Environment (CEE) the
HRA's loan program administrator, about joint sponsorship of the book. King expressed
interest in the concept and will review it with their staff. CEE has contacts with several
private foundations that might be interested in contributing toward the project. Our
preliminary estimate is that the book will cost $12,000 to $15,000 to produce (including
an architect hired to do the drawings) and print. A portion of this cost could be
i ecouped through book sales ($10.00 per copy). If pursued, the planbook could be
made available at the 1998 Remodeling Fair.
Staff has also been working with other metro area communities (mostly first -ring
suburbs) about the possibility of a joint effort to produce a planbook for post World War
II era housing (ramblers, cape cod homes, and split entries). Given the size of the
project, this effort may not produce a planbook until 1999. The participation amount
has been preliminarily established at $5,000, and will depend on the number of cities
participating.
Additional information will be presented at the HRA meeting on October 9''. Staff will
make a recommendation at a future meeting as to which approach the HRA should
pursue and what the potential costs would total. No action is needed at this time.
GF/
M- 97-416
7A
I w _
Fridley
Outline
Remodeling Planbook
Objective
To provide ideas and plans for remodeling and improving post -war suburban homes. The
Planbook should have the end result of providing remodeling plans as well as inspiration
for owners to improve their current home to meet their changing needs. And in turn
preserve, maintain and protect older suburban neighborhoods and cities from
deterioration and urban sprawl.
Chapter 1
How To Use The Planbook
A brief explanation on how to use the Planbook.
Free Plan Reproduction
Chapter 2
Description of the Architectural Elements and Building Design
Describing and Identifying the Rambler - Ramblers are one -story homes with a
simple low- pitched roof line and a large picture window on the front elevation.
The majority of ramblers were built from the late 1940's through the late 1960's,
however rambler are still being built today. The 1990's ramblers will have large
garages in the front instead of the picture windows and a front dormer or
gable over the front entry.
Original Floor Plan And Perspectives
Preserving the Home's Character - Identify elements which create architectural
charactet style and interest to preserve the elements which make up the
character of a home and enhance the home's aesthetic and monetary value.
Chapter 3
Remodeling Your Rambler
Remodeling Plans
Front Entry
Kitchen Remodel
Mud Room Or Rear Entry
Deck and Porch
Interior Remodeling
Family Room
Kitchen and Formal Dining
Stairway '
Moving Walls
Closet Space
Changing the Exterior Appearance - Tired Looking Like the Rest of the Block
Roof Ornamentation and Shingle Selection (Doubling Shingles /Cupola/ Roof
Pitch /Dutch Hip)
Siding Selections and Trim Ornamentation
2nd Story Addition - The Pros and Cons of Going Up
7B
Chapter 4
City Setback Requirements
The Buildable Box
Setbacks, Property Line, Enclosed Spaces
Variances - What are they and how do they work.
Chapter 5
Building Code Information
Planbook Plans Reviewed and Approved (in concept).
Plan Review and the Inspections Process.
Chapter 6
Contract vs. Do- it- Yourself
Chapter 7
Terminology
Zoning
Construction
Architecture
Chapter 8
Public Sector Agencies
Utility Companies
Reference Books, Magazines And Periodicals
7C -
t
Fridley Remodeling Planbook
Timeline
Second Week of September
• HRA Staff Review
Mid to Late September
• Departmental Plan Review
• Give out assignments to Inspections and Planning
Mid October
• Review project with HRA Board
• Make Changes to Plans as noted from Review Meeting
• Prepare and send out RFP for Architectural Drawings
First of November
• Finalize Budget
Mid November
• I st Draft of Text Due
Mid December
• HRA Board Approval
• 2nd Draft of text and plans.
First Week of January
• Final Changes to Texts and Plans.
Second Week of January
• Final Drawings
First Week of February
• Book To Printer
First of March
• Book Ready for Remodeling Fair
7D
MEMORANDUM
HOUSING
AND
REDEVELOPMENT
AUTHORITY
DATE: October 3, 1997
TO: William Bums, Executive Director of HRA 4
FROM: Barbara Dacy, Community Development Director
Grant Femelius, Housing Coordinator
SUBJECT: Housing Replacement Program Update
Since the September HRA meeting, staff has completed the developer bid packages
(copy in packet) for the sale of five vacant residential lots. A total of 30 packets have
been mailed out so far to interested parties, although no offers have been received.
No action is need by the HRA at this time.
GFI
M- 97-417
MEMORANDUM
HOUSING
1
REDEVELOPMENT
AUTHORITY
DATE: October 3, 1997 n
TO: William Bums, Executive Director of HRA 00
FROM: Barbara Dacy, Community Development Director
Grant Femelius, Housing Coordinator
SUBJECT: Resignation of Margaret Metzdorff
On September 24' Margaret Metzdorff submitted her resignation notice as Remodeling
Advisor. Margaret's contract calls for a 30 working day notice of her intent to terminate
the contract. Her last day of employment is November 4. She has accepted a
position with the City of Brooklyn Park in the Community Development Department as.a
housing planner.
As you know, in February of this year we expanded the job to a full -time position with
approximately half the costs shared by the City of Blaine. Blaine officials have been
extremely pleased with the service and in fact plan to create a new housing coordinator
position which will incorporate remodeling advisor duties. As a result, they do not want
to continue to share the remodeling advisor position after Margaret leaves.
We believe that the joint position worked well for both communities and that the position
attracted higher caliber candidates than those who applied for the part -time position
earlier this year. Barbara is in the process of contacting surrounding communities to
see if there is interest in sharing the service. If not, we will probably re- advertise the
position this fall on a part-time basis. However, depending on what we hear from the
other cities, we would like to preserve the option of retaining the position on a full -time
basis in Fridley.
We will provide the HRA with an update and a recommendation at their November
meeting. No action is needed by the HRA at this time.
M- 97-418
gz-o',
FRIDLEY MUNICIPAL CENTER - 6431 UNIVERSITY AVE. N.E. FRIDLEY, MN 55432 - (612) 571 -3450 - FAX (612) 571 -1287
September 22, 1997
The Fridley Housing and Redevelopment Authority is pleased to. announce that it
has a small inventory of residential lots which are available for sale as new home
sites.
The attached Development Guide explains the program, what is required to build
a new home, and how to submit an offer. If you have participated in this
program before, there.are several changes we've made to the program.
Lots..are available for sale on a first -come, first -serve basis. Lots may be
reserved for up to 90 days to allow for marketing and finding a home
buyer.
2. Minimum lot and house prices have been established. Please review
these requirements before reserving a lot.
Don't miss this exciting opportunity to build in Fridley. If you have any questions
or would like'to reserve a lot please call me at 572 -3591.
Sincerely,
a W-1 -
Grant Fernelius
Housing Coordinator
Housing Replacement Program
Development Guide
Information on Purchasing Vacant Lots through the Fridley HRH's
Residential New Construction Program
Fridley Housing and Redevelopment Authority
6431 University Avenue N.E.
Fridley, Minnesota 55432
(612) 572 -3591
Contact Person: Grant Femelius, Housing Coordinator
Equal Housing Opportunity Agency
9/22/97 1
INDEX
Section Topic
A
Introduction
B
Program Summary
C
Construction Requirements and Design Guidelines
D
Redeveloper Requirements
E
Lot Reservation Process
F
Approval Process
G
Lots for Sale
Exhibits
1. Lot Reservation Instructions
2. Participation Agreement
3. Redeveloper Information Form
4. Location Maps
9/22/97 2
6
A. Introduction
Thank you for your interest in the Fridley Housing Replacement Program. This
Development Guide provides an overview of the program and the steps you will
need to take in order to purchase a vacant lot and build a new home.
Throughout this guide the following terms will be used:
1. The "Authority" refers to the Housing and Redevelopment Authority in and
for the City of Fridley, Minnesota.
2. The "Redeveloper" refers to the builder or general contractor who
constructs the home.
3. The "Home Buyer" refers to the party who will own and occupy the home
upon completion.
B. Program SummarX
The Authority is the development arm of the City of Fridley. It operates as a
separate legal entity with a five member citizen board appointed by the Mayor
and approved by the City Council. Each member serves a five year term. The
Authority meets on the 2' Thursday of every month at the Fridley Municipal
Center, 6431 University Avenue N.E.
The Housing Replacement Program was created in 1995 for the purpose of
removing older, substandard housing which can lead to neighborhood blight and
decline. The first phase of the program involves the acquisition of homes which
are in very poor condition and not suitable for rehabilitation. Once acquired, the
structures are demolished. The second phase of the program.involves the sale
of the land and construction of new homes. This Development Guide describes
what is required to purchase a vacant lot and build a new home.
C. Construction Requirements and Design Guidelines
The Housing Replacement Program is a new construction program. For
purposes of this program riew construction means conventional, on -site, "stick -
built" construction. Moved -in homes or manufactured housing (example: mobile
homes) are not acceptable. The new homes must be constructed according to
applicable building and zoning codes and owner - occupied upon completion.
In addition, all homes shall conform to the design guidelines described on the
next page.
9/22/97
C. Construction Requirements and Design Guidelines (cont.)
The design guidelines are minimum standards and the Authority will review all
construction and site plans before construction can begin.
1. Only single - family, detached dwellings, may be constructed. A covered
entry to the dwelling is desirable.
2. A minimum of two bedrooms (on the same floor) are required. Three and
four bedroom homes are desirable.
3. A minimum of one full bath and one -half bath is required.
4. A two (2) car attached garage is required. A hard surfaced driveway
(asphalt or concrete) is also required.
5.. Exterior materials should be low maintenance, such as steel, vinyl or
aluminum siding. Brick facing and other architectural ornamentation is
desirable. Hardboard siding is not acceptable.
6. The window and door placement shall be used to minimize blank wall
mass. Orientation to the street should present a balanced and pleasing
view from all sides: New homes. should not "tower" over surrounding
properties.
7. All sites must be fully landscaped upon completion and should include
both sod installation and placement of plants and shrubs. Existing trees
shall be preserved whenever possible. Care should be taken to protect
existing root systems. A tree wrap, with board reinforcement shall be
used on trees directly adjacent to active grading and construction.
8. Utility meters shall be screened from street view; locations must be
specified on plans. All air conditioning units must be located in the rear
yard or screened in the side -yard.
9. The Authority recommends that all building and construction plans be
prepared in consultation with an Architect or an Architectural Designer
with a minimum two year technical degree.
10. House designs which emphasize front porches, covered entries, brick
facing, architectural ornamentation or other unique features are strongly
encouraged.
9/22/97 4
C. Construction Requirements and Design Guidelines (cont.)
11. Upon completion, the property must have a minimum value which is
specified in Section G.
D. Redeveloper Requirements
The Authority will only sell the vacant lots to residential home builders who are
licensed by the State of Minnesota. To verify compliance with this requirement,
the Redeveloper will be required to submit appropriate documentation which is
described in Section E.
E. Lot Reservation Process
The process of purchasing and developing a vacant lot is fairly straight forward.
Parcels are available for sale on a first -come, first -serve basis. Information on
the parcels, including lot price and minimum house value can be found in
Section G.
To reserve a lot, interested parties should - contact Grant Femelius, Housing
Coordinator, #572 -3591 to determine if the lot is still available. If the parcel is
available, the Redeveloper must submit the following:
Complete a Participation Agreement (see Exhibit 1) and pay a'$500
participation fee (payable to the Fridley HRA) which is non - refundable,
non - transferable and is not deducted from the purchase price of the
property.
2. Provide evidence of state contractor's license and' proof of insurance.
3. Submit references:
a. Three former customers.
b. Three licensed subcontractors, one of which shall be an electrician,
plumber and masonry contractor.
C. Three building material suppliers, one of which must be a lumber
supplier.
d. One building inspector from a City in which the builder has worked
within the last two years.
9/22/97
E.
F.
G.
Lot Reservation Process (cont.)
e. One bank reference with a contact person and a telephone number.
Approval Process
Once the Participation Agreement is accepted and signed by the Authority, the
Redeveloper has up to 90 days to do the following:
1. Market the property.
2. Secure a Home Buyer.
3. Start construction plans and specifications.
4. Sign a Redevelopment Contract with the Authority and provide a 5% down
payment on the lot.
The Redevelopment Contract is the legal document which spells out the obli-
gations of both parties, including the price for the lot, the minimum value of the
new home and evidence of a purchase agreement with a Home Buyer. In
addition, the document will also specify the closing date and the dates for
commencement and completion of the home.
Legally, the Authority is required to conduct a public hearing before it can sell a
lot. At the same meeting, the Authority will approve the Redevelopment Contract
and within 60 days of approval the Redeveloper must submit construction plans
to the Authority, a Purchase Agreement with the Home Buyer and proof of
construction financing. Once the plans are approved by the Authority, a closing
will be scheduled. At the closing the Redeveloper will be required to pay the
balance of the lot price in exchange for title to the property.
Lots for Sale
The following sites are available for sale. All sites are vacant, with the exception
of #5 which will be demolished in the Fall of 1997. No representations are made
with regard to soil condition, however at the time of acquisition all sites were
used for residential purposes. Minimum value refers to the actual purchase
price of home when sold to the Home Buyer.
Address:
Lot Size:
Lot Price:
Suggested Minimum Home Value
School District:
9/22/97 6
540 -550 Hugo St. NE
100' x 110'
$25,000
$110,000
No. 11 (Anoka School District)
G. Lots for Sale (cont.)
2. Address:
Lot Size:
Lot Price:
Minimum Home Value:
School District:
3. Address:
Lot Size:
Lot Price:
Minimum Home Value:
School District:
4. Address:
Lot Size:
Lot Price:
Minimum Home Value:
School District:
5. Address:
Lot Size:
Lot Price:
Minimum Home Value:
School District:
Exhibits-
1. Lot Reservation Instructions
2. Participation Agreement
3. Redeveloper Information Form
4. Location Maps
9/22/97 7
530 Hugo St. NE
100' x 110'
$25,000
$110,000
No. 11 (Anoka School District)
5925 Main St.
80'x 129'
$20,000
$95,000
No. 14 (Fridley School District)
5857 Main St.
80'x 129'
$21,000
$95,000
No. 14 (Fridley School District)
58002 nd St.
80'x 130'
$22,000
$95,000
No. 14 (Fridley School District)
Lot Reservation Instructions
Contact the HRA staff and indicate which site you are interested in reserving. If the site is
available you will need to submit the following:
1. Participation Agreement: Complete boxes 1-4 [bold italics]. The dates will be
filled in by the Authority.
2. Participation Fee: $500.00 Check should be made payable to the Fridley Housing
and Redevelopment Authority.
3. Redeveloper Information Form with the required attachments.
FRIDLEY HOUSING REPLACEMENT PROGRAM
PARTICIPATION AGREEMENT
THIS AGREEMENT is made and entered into this day of , 19 , by
and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY
OF FRIDLEY, MINNESOTA, a public body corporate and politic under the laws of the State of
Minnesota, having its principal office at 6431 University Avenue NE, Fridley, Minnesota 55432
(the "Authority ") and [box 1]
having its principal office at [box 4
(the "Redeveloper").
In consideration of the mutual covenants and obligations of the Authority and the
Redeveloper, the parties do hereby covenant and agree as follows:
1. For the sum of $500 (the "Participation Fee") paid by the Redeveloper to the
Authority, the receipt of which is hereby acknowledged, the Authority hereby
grants to the Redeveloper the right to participate in the Fridley Housing Replace=
ment Program (the "Program ") in accordance with its guidelines.
2. The Authority further, grants to the Redeveloper the exclusive right to enter into a
contract to redevelop the property located at
[box 3] Fridley, Minnesota (the "Property") in accordance with the
Program. This right will expire on 119 , unless, prior thereto,
the Redeveloper and the Authority have executed a Contract for Private
Redevelopment (the "Contract ") with regard to the Property.
3. The Authority agrees to negotiate in good faith with the Redeveloper regarding
redevelopment of the Property, but nothing contained in this Agreement shall
require the Authority to enter into the Contract if, at the Authority's sole discretion,
it deems such not to be in its best interests.
4. The Participation Fee paid by the Redeveloper to the Authority is non - refundable
and non - transferable to any other property or site owned by the Authority and is
separate from the sales price.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF FRIDLEY REDEVELOPER [box 4]
By: By:
Its: Its:
REDEVELOPER INFORMATION FORM
1. Name of Redeveloper:,
(legal business name)
2. Business Address:
3. Telephone Number: L_) Fax Number: ( -
4. Contact person:
Title:
Phone:
Contact person:
Title:
Phone:
5. Organized as (check one):
Sole Proprietorship
Partnership
Corporation
Other (please specify)
6. Federal tax identification number:
7. State of Minnesota Contractor's license number:
8. Names of former customers (within last 2 years):
Buyer:
Tel. #
Description of project:
Date:
Buyer:
Tel. #
Description of project:
Date: .
Buyer:
Tel. #
Description of project:
Date:
(attach copy)
9. Names of sub - contractor references (within last 2 years):
Sub - contractor:
Contact person:
Tel. #
Sub - contractor:
Contact person:
Tel. #
Sub - contractor:
Contact person:
Tel. #
Name of lumber supplier:
Contact person:
Tel. #
10. Name of building inspector reference (within last 2 years):
Name:
City:
Tel.#
11. Name of bank reference:
Name:
Bank:
Tel.#
12.. How long have you been in the home building industry?
13. What is the price range of the typical home you build?
14. Average number of homes you build in a year?
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TO: WILLIAM W. BURNS, CITYMANAGER AP �'
FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR
SUBJECT: MOORE LAKE NORTHWEST RACQUET CLUB
DATE. October 1, 1997
The attached information is in regard to the proposed tax court settlement for the
Northwest Racquet Club. As you may recall, this property, along with the other clubs,
was recently sold and as a result of the sale a tax petition followed. The settlement is
outlined on the attached memo.
We will be reviewing the settlement as it impacts the Moore Lake Tax Increment.District
to determine tax loss.
RDPIme
Attachment.'.....
Sept. 22, 1997
To: Rick Simmer
From: Edward Hervin, City Assessor
Re: Northwest Racquet Club, Moore bake Club
Pin# 13- 30 -24 -34 -0029
We are currently dealing with several years' tax court petitions on the market value of this
property.
The assessors involved in these cases had a meeting this morning to discuss the allocation
of values between the various clubs. The properties were sold recently and an allocation of
the sale price has been made by the buyers. We have some changes to make to their
allocation but we mostly agree on the numbers. The sale price was about $61,000,000.
Some of this was allocated to personal property and some to vacant land and other clubs.
The buyers allocation of value to the Moore Lake Club was $9,500,000. We have come
up with an offer to settle the petitions on all the clubs. We are making a package offer and
it involves multiple years.
The Moore Lake Club has open petitions for the pay. 1995, 1996 and 1997 years. The
value we -have on the property for all of these years is $12,851,700. The values we are
going to ask for are as follows:
pay 1995 recommend dismissal
pay 1996 $12,000,000
pay 1997 $11,000,000
pay 1998 $9,989,000
This property is in a TIF district.
reduction of $851,700
reduction of $1,851,700
reduction of $2,862,700
The Hennepin County attorney's office will draft the offer and work with the Anoka and
Dakota County attorneys. Values for pay 1998 and into the future will be reduced to at
least the last years offer. I will keep you apprised of developments.
City of Fridley
TO: William W. Bums, City Manager PW97 -254
FROM: John G. Flora, Public Works Director
r
DATE: September 25, 1997
SUBJECT: TH 65/1- 694/Lake Pointe Project
On Wednesday, September 24,1997, 1 attended a meeting at Waters Edge with various members of the MnDOT
staff associated with plan review and approval. The purpose of the meeting was to bring everyone up to speed
on the project, identify any major problems and hopefully expedite the review process. It was interesting to note
that a number of the staff, while aware of a project, they were not aware of this particular project, its magnitude
or cost.
One of the concerns discussed was the conflict of the 35W improvement project north of 694, scheduled for
1998, and our project. As a result of the discussion, it was determined that the 35W project could be awarded
later in the year so as not to compete with or obstruct our project. It is hoped that this can be achieved so that
the traveling public will not experience polrlems in the north/south .direction.
There is a concern on meeting .a February letting date for our project. SEH still has to receive a lot of
information from the various staff offices to incorporate into the plans: There are continual changes being made.
For example, originally it.was proposed to place concrete on TH 65 but it has now been determined to use
bituminous, and as an additional item, it was determined that a concrete median will be placed on the 65
causeway over Moore Lake and remove the existing metal barrier. these, items result in changes to the project
design and project scope.
In reviewing the overall changes to the project, it appears that MnDOT added an additional $700,000 to the
project for a net participation of $1 million. They currently have not identified where the funds are coming from
and this maybe an. obstacle. It is expected that other projects will fallout of the program and the funds could
then be reallocated to our project. At this point in time, it is not dangerous but there is some concern by the
MnDOT staff.
In reviewing the required temporary construction easements necessary for the project, it was originally
considered that approximately 13 properties along Central Avenue would be impacted by the
road alignment. After further discussion, it was decided to shift the road slightly towards Moore Lake, thereby
reducing the impact to only two properties. At the same time, a retaining wall will be required along a section
of the bike path and the bike path raised to conform to the alignment of the new road. This was something that
we did not anticipate when the path was placed, but should be a minimal change and inconvenience during the
construction. The benefit essentially is removal of the impact to the residential properties on Central Ave.
As a result of the meeting,. the staff will attempt to identify fund availability and initiate preliminary discussions
and review of the drawings as they are developed to obtain approvals and agreements so that the City can let
the project in February, 1998 for 1998 construction.
JGF:cz a .
I I 91flil
ANOKA COUNTY HOUSING AND REDEVELOPMENT
Paul McCarron, Chairman Margaret Langfeld, Vice Chair
Dennis D. Berg Dave McCauley
Dan Erhart William Nelson
Donald H. Fndell
September 3, 1997
The Honorable Nancy J. Jorgenson
Mayor, City of Fridley
5730 Polk Street N.E.
Fridley, MN 55432
Re: County HRA Levy
Dear Mayor Jorgenson:
FK77,
AUTHORITY
As you recall, the Anoka County HRA.has adopted a policy of not instituting a levy in communities
which have as t liiishecl, an..HRA or an EDA with HRA powers unless those. communities request
to be included in the levy. If your community is interested in being included in the 1998 levy,
please pass a resolution and submit it prior to November 1, 1997, to Tim Yantos, Executive
Director, Anoka County HRA, 2100 3rd Avenue, Anoka, MN 55303.
The monies collected from the levy in your community would, less administrative expenses, be
used for projects in your community which you have given your authorization for and which the
Anoka County HRA has agreed to undertake. We believe that this can be a beneficial partnership
for your citizens and that improvement to our housing stock is critical to the long -term quality of
life in Anoka County.
Some examples of projects which have been completed or are in various stages of
implementation are:
• 49 -unit senior building in Ham Lake;
• First -time homebuyer's program in most communities;
• Financing for the Super Rink in Blaine;
• Assistance in rental housing improvement in Lexington;
• Housing analysis in East Bethel and Ramsey;
• 16 -unit senior facility in Centerville;
• Implementation of Hollman settlement countywide; and
• Housing rehab efforts in various communities.
Telephone: (612) 323 -5680; Fax: 323 -5682; TDDfrTY: 323 -5289
Government Center, Administration Office, 2100 3rd Avenue, Anoka, MN 55303 -2265
September 3, 1997
Page 2
We continue to believe that a voluntary approach to partnering with the Anoka County HRA would
be an advantageous way for you to achieve improvements in the housing in your city and that
the time to act on these issues is now rather than waiting until the availability of quality affordable
housing for our citizens reaches a crisis situation. Please feel free to call me or Tim Yantos at
323 -5680 if you have questions or comments.
Sincerely,
Paul McCarron, Chair
Anoka County Housing and Redevelopment Authority
PM:bje
cc: City Council Members
City Managers
Community Development Directors
Anoka County HRA Trustees
i
HRA LOAN SERVICING REPORT *
End of August 1997
Installment Loans
Number of Loans
Principal Balance at Beginning of Month
Principal Payments
Principal Balance at End of Month
Interest Payments
Late Fees
CRF Servicing Fees
Net Interest Received
Net Payments Received
Defers d Loans-. : >. .
Number of Loans
140
$ 1,749,789.95
$ 39,948.33
$ 1,709,841.62
$ 6,509.42
$ 35.26
$ (759.00)
$ 5,785.68
$ 45,734.01
23
Principal Balance at Beginning of Month $ 123,033.00
Principal Payments $ .70.78
Principal Balance at End of Month $ 122,962.22
Interest Payments $ 188.62
Late Fees $ -
CRF Servicing Fees $ -
Net Interest Received $ 188.62
Net Payments Received $ 259.40
TOTAL PAYMENTS RECEIVED $ 45,993.41
Notes:
* Covers most recent reporting period. CRF remits payments and loan servicing
reports approximately 15 days after end of previous month.
1997 LOAN ACTIVITY REPORT
10/3/97
LOAN ORIGINATION REPORT
Year- to-Date
CC r Wide Loans and Grants
CDBG
HRA
MHFA
HOME
Date
Type of
Name
Address
Loans
Loans
Grants
Total
Closed
Property
Program
1 Moses
5180 Hughes Ave.
$ 12,922
$ -
$
-
$ 12,922
117/97
Single -Family
HRA 5%
2 Idng
375 67th Ave. NE
$ 11,306
$ -
$
-
$ 111306
128197
Single- Family
HRA 5%
3 Larson
6130 6th SL NE
$ 4,670
S
$
-
$ 4,670
225197
Single - Family
HRA 59%
4 Diedrich
46 66th Way NE
$ 8,375
S -
$
-
$ 8,375
3111197
Single - Family
HRA 5%
5 Overud
221 Rice Creek Terr.
$ 4,839
$
$
-
$ 4,839
3112197
Single - Fondly
HRA 59%
6 Zebra
6589 Clover Place
$ 11,039
$ -
$
-
$ 11,039
4/7197
Single - Family
HRA 59%
7 Westinfield
81 Rice Creek Way
$ 25,000
$
$
-
$ 25,000
418197
Single - Family
HRA 5%
8 Setering
71 661h Way NE
$ 10,000
$ -
$
-
$ 10, 000
418197
Single - Family
Last Resort Deferred
9 Doherty
7315 Fast River Rd.
$ 3,474
$ -
$
-
$ 3,474
418197
Single-Family
HRA 5%
10 Westby
1467 Onondaga SL
$ 10,000
$
$
$ 10,000
4122/97
Single - Family
HRA 5%
11 Madej
6400 Starlite Blvd.
$ 9,500
$
$
-
$ 9,500
428197
Single - Family
HRA 5%
12 Anderson
6800 Oakley St
$ 7,500
$
$
$ 7,500
429197
Single - Famfiy
HRA 5%
13 Olson
1442 64th Ave.
$ 2,700
S
$
$ 2,700
429197
Single - Family
HRA $ %
14 Maile
6218 Carol Circle
$ 2,000
$
$
$ 2,000
516/97
Single - Family
HRA S%
15 Butler
5948 7th St NE
$ 16,814
$
$
$ 16,814
6097
Single- Fandly
HRA b%
16 Allard
516 54th Ave.
$ 7,239
$
$
$ 7,239
58197
Single -Family
HRA 5%
17 Warner
6930 Hickory Dr.
$ 4,859
$
$
$ 4,859
5!//97
Single - Fatuity
HRA 5%
18 Englebrelson
1643 Gardena Ave.
$ 3,800
$ -
$
-
$ 3,800
5113197
Single - Family
HRA 5%
19 Hart
861 Pandora Drive
$ 13,200
$
$
$ 13,200
5113197
Single- Family
HRA 51/6
20 Varcoe
974 Rtce Creek Terrace
$ 4,860
$
$
$ 4,860
5119197
Single- Family
HRA 5%
21 Miter
525 Bennett Drive
$ 3,750
$
$
$ 3,750
527197
Single - Family
HRA 5
22 Larson
359 66th Avenue NE
$ 10,380
$
$
$ 10,380
5127/97
Single - Family
HRA 5%
23 Larson
5980 4th St
$ 15,594
$
$
$ 15,594
6/17/97
Single - Family
HRA 5%
24 Brask
5621 Horizon Drive
$ 11,000
$
$
$ 111000
824197
Single- Family
HRA 5
25 Hatchett
1313 HOhvind Rd.
$ -
S 51000
$
$ 5,000
411.1/97
Single - Family
MHFA Energy Loan
26 Massey
5941 6th St NE
$ -
$ 5,000
$
-
$ 5,000
523197
Single - Family
MHFA Energy Loan
27 Schill
560 Ironton St
$. 6,140
$ -
$
-
$ 6,140
711/97
Single-Family
HRA 61%
28 Czech
7665 Bacon Dr.
$ -
$ 2,700
$
-
$ 2,700
7/1197
Single- Family
MHFA Energy Loan
29 Blegen
275 Ironton St
$ 61509
$ -
$
$ 6,509
711197
Single- Family
HRA 5%
30 Kaye
585 Rice Creek Terrace
$ 8,460
$
$
$ 8,460
718197
Single -Family
HRA 6%
31 King
1505 Femdale Avenue NE
$ 24,046
$
$
$ 24,046
7AY97
Single - Family
HRA 5%
32 Wasserman
340 Hugo St NE
$ 22,550
$
$
$ 22,650
722197
Single - Family
HRA 5%
33 Samuelson
593 Rice Creek Terr.
$ 8,600
$
$
$ 8,600
729197
Single - Family
HRA 51%
34 Pierce
572 Rice Creek Terr.
$ 18,fi22
$
$
$ 18,522
722197
Single-Family
HRA 5%
35 Amar
6121 Sunrise Drive
$ -
$
$
8,908
$ 8,908
PerK tg
Singla- Family
CDBG Grant
36 Holm ,
6120 Swiss Dr. NE
$
$
-.$.
. 7,236
$ 7,236
711X97
• • Single - Family
CDBG Grant
133¢ 7691 �►w9. NE ' '"
$ 98,1or
$ = .
$
`' $ 73,'1(17
7221 7 '
Singie-Feml(y
Hl2A ST. a
38 Ramsey
1340 64th Ave.
$i • 26,060
$ 14.800
• $
_.
. $39,860
8/5/87'
Shtgle Fart91y
HkA 6%
'39 Jacobson
6606 Brookview On NE
$ 18,266
$ -
$
$ 16,266
&12197
Single -Family
HRA S%
40 Welts
6553 Oakley On NE
$ 1,937
$ -
$
-
$ 1,937
8112/97
Single -Family
HRA b%
41 Sdterber
1376 66th Ave. NE
$ 2,037
$ -
$
$ 2,037
8112197
Single- Family
HRA•5 %
42 Kealy
5771 Central Ave. NE
$ 18,448
$ -
$
-
$ 18,448
8119197
Single - Family
HRA 5%
43 Wasserman
340 Hugo SL NE
$ 1,900
$ -
$
-
$ 1,900
8/19/97
Single- Fandly
HRA 5%
44 Bissonette
6001 Woody Lane
$ 19,793
$ -
$ •
-
$ 19,793
8/19197
Single- Family
HRA 6%
45 Milich
71 63-12 Way NE
$ 4,300
$ -
$
-
$ 4,300
9097
Single -Family
HRA 5%
46 Crosser
5612 bth St NE
$ 8,700
$ -
$
-
$ 8,700
9/8197
Single-Family
+IRA 51/6
47 Grade
7398 Melody Dr. NE
$ 2,100
$ -
$
$ 2,100
919197
Single -Family
HRA 6%
48• Welton•Smith
5M- 6th SL NE
$ 9,165
$ -
$
-
$ 9,165
.918197
Single- Family
-HRA 5%
49 Holmberg .
6150 Stmrtse Drive
$ 7,536
$ -
$
$ -
923197
Singie -Family
HRA 5%
50 Culler
7513 East River Rd.
$ 1,938
$ -
$
$
923197
Single- Family
HRA 5%
51 Johnson
6800 Mot woe St
$ 19,244
$ -
$
$
923/97
Single - Family
HRA 5%
52 Erickson
231 Longfellow SL
$ 6,200
$ -
$
$
923197
Single- Family
HRA 5%
52
Sub - Totals
$469,317
$.27.300
$
16,144
$477,845
Hyde Park Loans and Grants
1 Anderson
6081 -65 3rd St NE
$ 6,621
$ 6,621
128197
Duplex
Hyde Park Matching Deferred
2 Monson
6046 2 -12 SL NE
$ 2,235
$
$
-
$ 2,235
411197
Single - Family
Hyde Park Matching Deferred
3 Rocek
5791 2 -12 St NE
$ 1,837
$
$
-
$ 1,837
418/97
Single- Fardiy
Hale Park Matching Deferred
4 Anderson
6061.65 3rd St NE
$ 1,379
$ 1,379
613197
Duplex
Hyde Park Matching Deferred
4
Sub - Totals
$ 12,072
$
$
$ 12,072
56
Grand Totals
$481,389
$ 27,300
$
16,144
$.489,917
1997 LOAN ACTNITY REPORT
10r1/97
i
Execution: May 1, 1997
CONTRACT
FOR
PRIVATE. REDEVELOPMENT
By and Between
THE HOUSING AND REDEVELOPMENT AUTHORITY
In and For
THE CITY OF FRIDLEY, NIINNESOTA
And
GERALD.W. PASCHKE AND ROSEMARY E. PASCHKE
This Instrument Drafted By:
KRASS MONROE, P.A. (JRC)
Suite 1100 Southpoint Office Center
1650 West 82nd Street
Bloomington, MN 55431
612/885 -5999
G:\ WPDATA \F \FR .-DLEY \19 \DOC \COVER.DOC
TABLE OF CONTENTS
Page
ARTICLE I
Definitions
Section 1.1. Defmitions 3
ARTICLE II
Representations and Warranties
Section 2.1.
Representations by the Authority
6
Section 2.2.
Representations and Warranties by the
Redeveloper
6
ARTICLE III
Site I_provements;
Undertakings of Authority and Redeveloper
Section 3.1.
Construction of Site Improvements
9
Section 3.2.
Reimbursement for Site Improvements
9
ARTICLE IV
Construction of Minimum Improvements
Section 4.1.
Construction of Minimum Improvements
10
Section 4.2.
Construction Plans
10
Section 4.3.
Completion of Construction
11
Section 4.4.
Certificate of Completion
11
ARTICLE V
Tax Increment
Section 5.1.
Tax Increment Certification
12
ARTICLE VI
Prohibitions Against Assignment and Transfer; Indemnification
Section 6.1. Representation as to Redevelopment 13
Section 6.2. Prohibition Against Transfer of
Property and Assignment of Agreement 13
Section 6.3. Release and Indemnification Covenants 13
ARTICLE VII
Events of Default
Section 7.1.
Events of Default Defined
15
Section 7.2
Events of Default Subsequent to
17
Section 8.2.
Certificate of Completion
16
Section 7.3.
Remedies on Default
16
Section 7.4.
No Remedy Exclusive
16
Section 7.5.-
No Additional Waiver Implied by One Waiver
16
Section 7.6.
Agreement to Pay Attorney's Fees
18
Section 8.7
and Expenses
16
ARTICLE VIII
Additional Provisions
Section 8.1.
Conflict of Interest; Authority
Representatives Not Individually Liable
17
Section 8.2.
Equal Employment Opportunity
17
Section 8.3.
Titles of Articles and Sections
17
Section 8.4.
Notices and Demands
17
Section 8.5.
Counterparts
18
Section 8.6.
Time of the Essence
18
Section 8.7
Assignability of Agreement
18
ARTICLE IX
Termination of Agreement; Expiration
Section 9.1. Termination 19
Section 9.2. Sections to Survive Termination 19
"r
SIGNATURES
20
SCHEDULE A
Description of Redevelopment Property
22
SCHEDULE B
Certificate of Completion
23
SCHEDULE C
Note
26
SCHEDULE D
Site Improvements
30
SCHEDULE E
Minnesota Business Assistance Form
31
SCHEDULE F-
Site Plan
32
G:\ WPDATA \F \FRIDLEY \19 \DOC \TOC.DOC
CONTRACT FOR PRIVATE REDEVELOPMENT
THIS AGREEMENT; made on or as of the 1st day of May, 1997 by and between the
Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the
"Authority "), 'a political subdivision of the State of Minnesota organized under the Constitution
and laws of the State of Minnesota and Gerald W. Paschke and Rosemary E. Paschke (the
"Redeveloper "),
WIT'NESSETH:
WHEREAS, the Board of Commissioners (the "Board ") of. the Authority has
determined that there is a need for development and redevelopment within the corporate limits
of the City to provide employment opportunities, to improve the tax base and to improve the
general economy of the City and the State of Minnesota;
WHEREAS, in furtherance of these objectives, the Authority has adopted, pursuant to
Minnesota Statutes, Sections 469.001 et sec ..(the "Act "), a development program known as the
Modified Redevelopment Plan (the "Redevelopment Plan") and established Redevelopment
Project No. 1 (the "project Area. ") in the City to encourage and provide maximum opportunity
for private development and redevelopment of certain property in the City which is not now in
its highest and best use;
WHEREAS, major objectives in establishing the Project Area are to:
1. Promote and secure the prompt redevelopment of certain property in the Project
Area; which property is not now in its highest and best use in a manner consistent with the
City's Comprehensive Plan and with a. minimum adverse impact on the environment, and
thereby promote and secure the redevelopment of other land in the City.
2. Provide additional employment opportunities within the Project Area and the
City for residents of the City and the surrounding area, thereby improving living standards,
reducing unemployment and the loss of skilled and unskilled labor and other human resources
in the City.
3. Prevent the deterioration and secure the increase of commercial/industrial
property subject to taxation by the City, the Independent School Districts, Anoka County, and
the other taxing jurisdictions in order to better enable such entities to pay for governmental
services and programs required to be provided by them.
4. Provide for the financing and construction for public improvements in and
adjacent to the Project Area necessary for the orderly and beneficial redevelopment of the
Project Area and adjacent areas of the City.
5. Promote the concentration of new desirable industrial, office, and other
appropriate redevelopment in the Project Area so as to maintain the area in a manner
compatible with its accessibility and prominence in the City.
6. Encourage local. business expansion, improvement, and redevelopment,
whenever possible.
7. Create a desirable and unique character within the Project Area through quality
land use alternatives and design quality in new or remodeled buildings.
8. Encourage and provide maximum opportunity for private redevelopment of
existing areas and structures which are compatible with the Project Area; and
WHEREAS, in order to achieve the objectives of the Authority and City in creating the
Project Area the Authority is prepared to assist the Redeveloper with the costs of the Site
Improvements in accordance with this Agreement; and
WHEREAS, the Authority believes that the development and redevelopment of the
Redevelopment Property pursuant to this Agreement, and fulfillment generally of the terms of
this Agreement, are in the vital and best interests of the Authority and the health, safety, morals
and welfare of its residents, and in accord with the public purposes and provisions of applicable
federal, state and local laws under which the -development and redevelopment are being.
undertaken and assisted;
NOW, THEREFORE, in consideration -of the premises and the mutual obligations of
the parties hereto, each of them does hereby covenant and agree with the other as follows:
-2-
ARTICLE I
Definitions
Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears
from the context:
"Act" means Minnesota Statutes, Sections 469.01 et seq.
"Agreement" means this Agreement, as the same may be from time to time modified,
amended, or supplemented.
"Authority" means the Housing and Redevelopment Authority In and For the City of
Fridley, Minnesota.
"Available Tax Increment" means 90% of the Tax Increment.
"Certificate of Completion" means the certification, in . the form of the certificate
contained. in Schedule. B attached to and made a part of this Agreement, provided. to the
Redeveloper, pursuant to Section 4.4. of this Agreement.
"City" means the City-of Fridley, Minnesota .
"Construction Plans" means the plans, specifications, drawings and related documents on
the construction work to be .performed by the Redeveloper on the Redevelopment Property. which
(a) shall be as detailed as the plans; specifications, drawings and related documents which are
submitted to the building official of the City, with an application for a .building permit for the
Minimum Improvements and (b) shall include at least the following for each building: (1) site
plan; (2) foundation plan; (3) floor plan for each floor, (4) elevations- (all sides); (5) facade and
landscape plan; and (6) such other plans or supplements to the foregoing plans as the .City may
reasonably request.
"Council" means the City Council, the governing body of the City.
"County" means the County of Anoka, Minnesota
"Event of Default" means any Event of Default described in Section 7.1 of this
Agreement.
"Minimum Improvements" means the improvements to the Redevelopment Property to
be constructed by the Redeveloper and shall consist of the construction of a concrete block
warehouse manufacturing facility, as an addition to an already existing building, consisting of
-3-
approximately 12,150 square feet and shall include landscaping, parking and related facilities.
The Minimum Improvements are shown on the Site Plan attached as- -Schedule F to this
Agreement.
"Minnesota Critical Areas Act" means the statutes located at Minnesota Statutes,
Section 116G.01 et seq., as amended.
"Minnesota Environmental Policy Act" means the statutes located at Minnesota
Statutes. Sections 116D.01 et seq., as amended
".Minnesota Environmental Rights Act" means the statutes located at Minnesota
Statutes. Sections 116B.0let seq., as amended
"National Environmental Policy Act" means the federal law located at 42 U.S.C. Sub.
Sect. 4331 et seq., as amended
"Note" - means the Limited Revenue Tax Increment Note of 1997 attached as Schedule
C. The Note shall be payable from Available Tax Increment.
"Project" means the Redevelopment Property and the Minimum Improvements.
"Project Area" means Redevelopment Project No.. 1, as amended, established in
accordance with the Act.
"Redeveloper" means Gerald W. Paschke and Rosemary E. Paschke, their heirs,
successors or assigns.
"Redevelopment Plan" means _ the modified - redevelopment plan adopted by the
Authority for its Project Area, as amended. ,
"Redevelopment Property" means the real property upon which the Minimum
Improvements are to be constructed, which real property is described on Schedule A of this
Agreement.
"Site Improvements" means those improvements, described on Schedule D and which
are qualified improvements to the Redevelopment Property.
"State" means the State of Minnesota.
"Tax Increment" means only that portion of the real estate taxes paid with respect to the
Redevelopment Property which is remitted to the City as tax increment pursuant to the Tax
Increment Act.
K, n
"Tax Increment Act" means the Tax Increment Financing Act, Minnesota Statutes. _
Sections 469.174 to 469.179, as amended and as it may be amended.
"Tax Increment District" means Tax Increment Financing District No. 3 created by the
Council within the Project Area through its adoption of a tax increment financing plan pursuant
to the Tax Increment Act.
"Tax Increment _Plan" means the tax increment financing plan adopted by the Authority
in connection with the creation of the Tax Increment District.
"Unavoidable Delays" means delays, outside the reasonable control of the Party
claiming its occurrence, which are the direct result of strikes, other labor troubles, acts of third
parties, unforeseen environmental issues and soil conditions, labor and/or material shortages,
unusually severe adverse weather, Acts of God, fire or other casualty to the Minimum
Improvements, liti gation commenced by third parties which, by injunction or other similar
judicial action, directly results in delays, or acts of any federal, state or local governmental unit
(including the City and the Authority) which directly result in delays.
-5-
ARTICLE H
Representations and Warranties
Section 2.1. Representations by the Authority. The Authority makes the following
representations as the basis for the undertaking on its part herein contained:
(a) The Authority is a public body duly organized and existing under the laws of the
State. Under the provisions of the Act, the Authority has the power to enter into this
Agreement and carry out its obligations hereunder.. '
(b) The Authority has created, adopted and approved the Redevelopment Plan in
accordance with the terms of the Act.
(c) The .Authority has created, adopted and approved the Tax Increment District
pursuant to the Tax Increment Act.
(d) The Authority proposes 'to reimburse the Redeveloper for the qualified tax
increment eligible costs, which will principally be the Site Improvements. .
(e) The Authority will cooperate with the Redeveloper with respect to any litigation
commenced by third parties in connection with this Agreement.
(f) The Authority makes no representation, guarantee, or warranty, either express or
implied, and hereby assumes no responsibility or liability as to the Redevelopment Property or
its condition (whether regarding soils, pollutants, hazardous wastes or otherwise) or that the
Redevelopment Property shall be suitable for the Redeveloper's purposes or needs.
Section 2.2: Representations and Warranties by the Redeveloper. The Redeveloper
represents and warrants that:
(a) As of the date of execution of this Agreement, the Redeveloper has received no
written notice or written communication from any local, state or federal official that the
activities of the Redeveloper or the Authority in the Tax Increment District may be or will be in
violation of any environmental law or regulation.
(b) The Redeveloper will construct, operate and maintain the Minimum Improvements
upon the Redevelopment Property in accordance with this Agreement and all applicable local,
State and Federal laws and regulations (including without limitation environmental, zoning,
building code and public health laws and regulations).
la
(c) The Redeveloper will obtain all required permits, licenses and approvals, and
will meet, in a timely manner, all requirements of all applicable local, state and federal laws and
regulations which must be obtained or met before the Minimum Improvements may be lawfully
constructed.
(d) The Redeveloper are husband and wife and neither the execution and delivery of
this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment
of or compliance with the terms and conditions of this Agreement will constitute a breach of
any obligations of the Redeveloper under the terms and conditions of any indebtedness,
agreement or instrument of whatever nature to which Redeveloper is. now a parry or by which
they. are bound, which breach will materially. adversely affect the ability of Redeveloper to
perform their obligations under this Agreement.
(e) The Redeveloper agrees that they will cooperate with the Authority with respect
to any litigation commenced by third parties in connection with this Agreement.
(f) Whenever any Event of Default occurs and the Authority shall employ attorneys
or incur other expenses for the collection of payments due or to become due or for the
enforcement or performance or observance 'of any. obligation or agreement on the part the
Redeveloper under. this Agreement, the Redeveloper agrees that they shall; within ten (10) days
of written demand, accompanied by a written itemization of .fees and expenses, by the
Authority, pay to the Authority the reasonable fees of such attorneys and such other expenses
so incurred by the Authority.
(g) The financing arrangements which the Redeveloper has obtained or will obtain, to
finance acquisition or construction of the Minimum Improvements, together with financing
provided by the Authority pursuant to this Agreement, will be sufficient to enable the
Redeveloper to successfully complete the Minimum Improvements as contemplated in this
Agreement.
(h) The Redeveloper represents that they would not be able to undertake the Project
in the reasonably foreseeable future without the assistance to be provided by the Authority
under this Agreement.
(i) The Redeveloper represents that the completed Project along with the existing
building and land are reasonably expected to have a value for the calculation of the ad valorem
property taxes of approximately $1,224,650.00 on December 31, 1997.
0) The construction of the Minimum Improvements, in the opinion of the
Redeveloper, would not reasonably be expected to occur solely through private investment
within the reasonably foreseeable future without the assistance provided by the Authority
pursuant to this Agreement.
-7-
The Authority has provided to the Redeveloper, and the Redeveloper
acknowledges receipt of, 'a copy of Laws of Minnesota for 1995, Chapter 224, Section 58,
codified as Minnesota Statutes. Section 116J.991, and entitled "Public Assistance to Business;
Wage and Job Requirements," requiring that within 2 years of receiving the assistance provided
pursuant to this Agreement, which for this purpose shall be deemed to be the 2 year period
• beginning on the date the Certificate of Completion is issued in accordance with Section 4.4,
the Redeveloper shall comply with certain jobs and other obligations stated in the above -
mentioned statute. The-Redeveloper hereby covenants to comply with said obligations, and the
Parties agree that said goal level shall be the creation of 15 - 20 jobs. within the applicable 2
year period. The Redeveloper acknowledges and agrees that, as required by this statutory
provision, failure to meet said goals will result in an Event of Default hereunder and in an
obligation of the Redeveloper to repay all of the assistance provided pursuant to this
Agreement. The Redeveloper further agrees that said jobs at the Service Center shall have an
hourly wage of at least $10.00 per hour. This subparagraph shall not be construed as .imposing
on the Redeveloper any obligation beyond the. scope and purpose of the above- mentioned
statute to maintain or provide minimum employment and wage levels. The Redeveloper
fiarther agrees to provide to the Authority in a timely manner, or to the State of Minnesota; as
may be applicable, any information that is reasonably necessary to comply with the above
mentioned statute and in particular the information necessary to complete the Minnesota
Business Assistance Form attached as Schedule F to this Agreement, provided, however, that
the Redeveloper's obligation to provide the information. referred to in this sentence shall
terminate once the Redeveloper has achieved the requirements contained in this Section 2.2(k).
(1) For the construction of the Minimum Improvements the Redeveloper will pay
wages in accordance with the prevailing wage rate as that term is defined in Ordinance No.
1095 of the City's Code.
(m) The Redeveloper shall not allow any use or occupancy of the Project by a
"Sexually Orientated Business" as defined in Ordinance No. 965 of the City's Code.
-8-
ARTICLE III
Site Improvements;
Undertakings of Authori ty and Redeveloper
Section 3.1. Construction of Minimum Improvements and Site Improvements.
The Redeveloper shall construct the Minimum Improvements and Site Improvements on the
Redevelopment Property and will maintain, preserve and keep the Minimum Improvements
and Site Improvements in good repair and condition.
All contracts for construction of the Minimum Improvements and Site .Improvements
.shall provide that payments for the work thereunder are the sole obligation of the Redeveloper.
Neither the City nor the Authority shall have any obligation under such contract.
Section 3.2:. Reimbursement for Site Improvements.
(a) The Redeveloper shall pay contractors, subcontractors, and/or construction
managers with whom the Redeveloper has entered into contracts.
Upon:
1) submission to the Authority of invoices from such contractors and certifications
signed by the. Redeveloper to the. effect that the costs for which payment was
made have been incurred in connection with the Site Improvements and upon
receipt of lien waivers from such contractors, subcontractors, and/or construction
managers, and
2) . issuance of the Certificate of Completion pursuant to Section 4.4 hereof,
then the Authority shall pay as reimbursement for such Site Improvements and other qualified
tax increment eligible costs, which will principally be the Site Improvements, the total of such.
costs by delivery of the Note in accordance with this Section and Section 4.4.
(b) The maximum amount of reimbursement for the qualified tax increment costs
which will be the Site Improvements can not exceed the principal amount of the Note. In the
event the costs of the Site Improvements are less than the principal amount of the Note, then the
Note principal and payments shall be reduced accordingly.
M
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements. The Redeveloper agrees that
they will construct the Minimum Improvements on the Redevelopment Property in accordance
with this Agreement and the approved Construction Plans.
Section 4.2. Construction Plans.
(a) Prior to the Redeveloper's commencement of construction of the Minimum
Improvements the Redeveloper shall submit to the Authority Construction Plans for the
Minimum Improvements. The Construction Plans shall provide for the construction of the
Minimum Improvements and shall be in conformity with this Agreement and all applicable
state and local laws and regulations. The Authority shall approve the Construction Plans in
writing if. (i) the Construction Plans conform to the terms and conditions of this Agreement;
(ii) the Construction Plans conform to all Federal, State. and local laws, ordinances, rules and
regulations applicable to the construction of the Minimum Improvements; (iii) the Construction
Plans are adequate to provide for the construction of the Minimum Improvements; and (iv) no
Event of Default has _occurred and is continuing. No approval by the Authority shall relieve the
Redeveloper of the obligation to comply with the terms of this Agreement.. No approval by the
Authority shall constitute a waiver of any Event of Default. If approval of the Construction
Plans is requested by the Redeveloper in writing at the time of submission, such Construction
Plans shall be deemed approved unless rejected in writing by the Authority, in whole or in part.
Such rejection shall set forth in detail the reasons therefore, and shall be made within ten (10)
days after the date of their receipt by the. Authority. If the Authority rejects any Construction
Plans in whole or in part, the Redeveloper shall submit new or corrected Construction Plans .
within. thirty (30) days after written notification to the Redeveloper of the rejection. The
provisions of this Section relating to approval, rejection and resubmission of corrected
Construction Plans shall .continue to apply until the Construction Plans have been approved by
the Authority. The Authority's approval shall not be unreasonably withheld.
(b) If the Redeveloper desires to make any material change in the Construction
Plans after their approval by the Authority, then the Redeveloper shall submit the proposed
change to the Authority for its approval. If the Construction Plans, as modified by the proposed
change, conform to the requirements of this Section 4.2 of this Agreement with respect to such
previously approved Construction Plans, the Authority shall approve the proposed change and
notify the Redeveloper in writing of its approval. Such change in the Construction Plans shall,
in any event, be deemed approved by the Authority unless rejected, in whole or part, by written
notice by the Authority to the Redeveloper, setting forth in detail the reasons therefore. Such
rejection shall be made within five (5) business days .after receipt of the notice of such change.
A material change shall mean a change which individually, or in aggregate with all prior
changes, affects the cost of the Minimum Improvements by One Hundred Thousand and
-10-
00 /100 Dollars ($100,000) or more.
Section 4.3. Completion of Construction.
(a) Subject to Unavoidable Delays, the Redeveloper shall have substantially completed
the construction of.the Minimum Improvements by December 31, 1997. All work with respect
to the Minimum Improvements to 'be constructed or provided by the Re* developer on the
Redevelopment Property shall be in substantial conformity in all respects with the Construction
Plans as submitted by the Redeveloper and approved by the Authority.
(b) The Redeveloper agrees for themselves, their heirs and assigns, and every successor
in interest to the Redevelopment Property, or any part thereof, shall promptly begin and
diligently prosecute to completion the redevelopment of the Redevelopment Property through
the construction of the Minimum Improvements thereon, and that such construction shall in any
event be substantially completed within the period specified in this Section 4.3.
Section 4.4. Certificate of Completion.
(a) Promptly after completion of the Minimum Improvements in accordance with the
provisions of this Agreement relating to the obligations of the Redeveloper to construct such
improvements (including the date for completion thereof) and this Section 4.4, the Authority
shall execute and deliver to the Redeveloper the Certificate of Completion. The Certificate of
Completion shall be a conclusive determination and conclusive .evidence of the satisfaction and
termination of the agreements and covenants in this Agreement with respect to the obligations
of the Redeveloper and its successors and. assigns, to construct the Minimum Improvements
and the date for the completion thereof.
. (b) If the Authority shall refuse or fail to provide the Certificate in accordance with
the provisions of this Section 4.4 the Authority shall, within twenty (20) days after written
request by the Redeveloper, provide the Redeveloper with a written statement, indicating in
adequate detail. in what respects the Redeveloper has failed to complete the Minimum
Improvements in accordance with the provisions of this Agreement, or is otherwise in default,
and what measures or acts it will be necessary, in the opinion of the Authority, for the
Redeveloper to take or perform in order to obtain a Certificate of Completion.
(c) The construction of the Minimum Improvements shall be deemed to be
completed when the City has issued its certificate of occupancy for the Minimum
Improvements.
-11-
ARTICLE V
Tax Increment
Section 5.1. Tax Increment Certification. Pursuant to the Redevelopment Plan, the
Authority has pledged and shall appropriate the Available Revenue to the payment of the
principal of and interest on the Note, said payment to be made in accordance with the terms and
provisions as stated in the Note.
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ARTICLE VI
Prohibitions Against Assignment and Transfer: Indemnification
Section 6.1. Representation as to Redevelopment. The. Redeveloper represents and
agrees that their purchase of the Redevelopment Property, and their other undertakings pursuant
to. this Agreement, are; and will be used, . for the purpose of redevelopment of the
Redevelopment Property and not for speculation in land holding. The Redeveloper further
recognizes that,. in view. of (a) the importance of the redevelopment of the Redevelopment
Property to the general welfare of the Authority; (b) the substantial financing and other public
aids that have been made available by the Authority for the purpose of making such.
redevelopment possible; and (c) the fact that any act or transaction involving or resulting in a
significant change.in the identity of the parties in control of the Redeveloper or the degree of.
their control is for practical purposes a transfer or disposition of the property then owned by the
Redeveloper; the qualifications and identity of the Redeveloper are of particular concern to the
Authority. The Redeveloper: further recognizes that it.. is because of such ,qualifications and
identity that the Authority is entering into the Agreement with the Redeveloper, and, in so
doing, is further willing to accept and rely. on the obligations of the Redeveloper for the faithful
performance of all undertakings and covenants hereby by them to be performed
Section 6.2. Prohibition Against Transfer of Pro a and Assignment of
Agreement. Also, for the foregoing reasons the Redeveloper represents and agrees that prior
to the issuance of the Certificate of Completion:
Except for the purpose of obtaining financing necessary to enable the Redeveloper or
any successor in interest to the - Redevelopment Property, or any part thereof,. to perform their
obligations with respect to making the Minimum Improvements under this Agreement, and any
other purpose authorized-by this Agreement, the Redeveloper has.not made or created and will
not make or create or suffer to be made or created any total or partial sale, assignment,
conveyance, or lease (excluding tenant leases), or any trust or power; or transfer in any other
mode or form of or with respect to the Agreement or the Redevelopment Property or�any part
thereof or any interest therein, or any contract or agreement to do any of the same, without the
prior written approval of the Authority. Any such transfer shall be subject to the provisions of
this Agreement. Notwithstanding the provisions of Section 6.1 and this Section 6.2, the
Redeveloper may transfer the Redevelopment Property to any corporation or other entity
controlling, controlled by, or under common control of the Redeveloper.
Section 6.3. Release and Indemnification Covenants.
(a) The Redeveloper covenants and agrees that the Authority and the governing body
members, officers, agents, servants and employees thereof shall not be liable for and agrees to
indemnify and hold harmless the Authority and the governing body members, officers, agents, .
servants and employees thereof against any loss or damage to property or any injury to or death
-13-
of any person occurring at or about or resulting from any defect in the Minimum
Improvements, except for any loss resulting from negligent, willful or wanfori "misconduct of
any such parties.
(b) Except for any negligent or willful misrepresentation or any negligent, willful or
wanton misconduct of the following named parties, the Redeveloper agrees to protect and
defend the Authority and the governing body members, officers, agents, servants and
employees thereof, now.or forever, and further agrees to hold the aforesaid harmless from any
claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever
arising or purportedly arising from this Agreement or the transactions contemplated hereby or
the acquisition, construction, installation, ownership, and operation of the Minimum
Improvements.
(c). The Authority and the governing body members, officers, agents, servants and
employees thereof shall not be liable for any damage or injury to the persons or property of the
Redeveloper or its officers, agents, servants or employees or any other person who may be
about the Redevelopment Property. or Minimum Improvements due to any act of negligence of
any person, other than the negligence and misconduct of Authority employees or those
employed or engaged by the Authority.
(d) All covenants, stipulations, promises, agreements and obligations of the
Authority contained herein shall be deemed to be the covenants, stipulations, promises,
agreements and obligations of the Authority and not of any governing body member, officer,
agent, servant or employee of the Authority in the individual capacity thereof.
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ARTICLE VII
Events of Default
Section 7.1. Events of Default Prior to the Issuance of the Certificate of
Completion Defined. Prior to the issuance of the Certificate of Completion, the following
shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean,
whenever it is used in this Agreement (unless the context otherwise provides), any one or more
of the following events:
(a) Failure by the Redeveloper to pay when due any payments or to provide any
funds required to be paid or. provided under Article III of this Agreement.
(b) Failure of the Redeveloper to submit satisfactory Construction Plans in
accordance with Section 4.2 of this Agreement.
(c) Failure by the Redeveloper to complete construction of the Minimum
Improvements pursuant to the terms, conditions and limitations of Article IV of this
Agreement.
(d) Failure by the Redeveloper to substantially observe or perform any material
covenant, condition, obligation or agreement on its part.to be observed or performed hereunder.
(e) The Redeveloper shall:
. (i) . file any petition in bankruptcy or for any reorganization, arrangement, .
composition, readjustment, liquidation, .dissolution or similar relief under the United
States Bankruptcy Code or under any similar federal or state law; or
(ii) make an assignment for the benefit of its creditors; or
(iii) admit in writing its inability to pay its debts generally as they become due;
or
(iv) be adjudicated as bankrupt or insolvent; or if a petition or answer
proposing the adjudication of the Redeveloper as a bankrupt or its reorganization under
any present or future federal bankruptcy act or any similar federal or state law shall be
filed in any court and such petition or answer shall not be discharged or denied within
ninety (90) days after the filing thereof, or a receiver, trustee or liquidator of the
Redeveloper or of the Redevelopment Property, or part thereof shall be appointed in any
proceeding brought against the Redeveloper and shall not be discharged within ninety
(90) days after such appointment, or if the Redeveloper shall consent to or acquiesce in
such appointment.
-15-
Section 7.2 Events of Default Subsequent to the Issuance of the Certificate of
Completion. Subsequent to the issuance of the Certificate of Completion, an Event of Default
shall only mean the nonpayment of any property taxes or the failure to pay when due any
payments 'required to be paid under Section 3.3 of this Agreement.
Section 7.3. Remedies on Default. Whenever any Event of Default referred to in
Section 7.1 of this Agreement occurs, the Authority may take any one or more of the following
actions after providing thirty days' written notice to the Redeveloper of the Event of Default,
but only if the Event of Default has not been cured within said thirty days, or if the Event of
Default is by its nature incurable within said thirty day period, and the Redeveloper fails to
provide the Authority with written assurances, deemed satisfactory in the reasonable discretion
of the Authority, that the Event of Default will be cured as soon as reasonably possible:
(a) Suspend its performance under this Agreement and the Note until it receives
assurances from the Redeveloper, deemed adequate by the Authority, that the Redeveloper will
cure its default and continue its performance under this Agreement.
(b) Terminate this Agreement.
(c) Withhold the Certificate of Completion.
Section 7.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to
either party to this Agreement is intended to be exclusive of any other available remedy or
remedies, but each -and every such remedy shall be cumulative and shall be in addition to every
other remedy given under this Agreement or now or hereafter existing at law or in equity or by
statute. No delay or omission to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to lie a waiver thereof, but any such right
and power may be exercised from time to time and as often as may be deemed expedient. In
order to entitle the Authority or the Redeveloper to exercise any remedy reserved to it, it shall
not be necessary to give notice, other than such notice as may be required in this Article VII.
Section 7.5. No Additional Waiver Implied by One Waiver. In the event any
agreement contained in this Agreement should be breached by either party and thereafter
waived by the other party, such waiver shall be limited to the particular breach waived and
shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder.
Section 7.6. Agreement to Pay Attorney's Fees and Expenses. Whenever any Event
of Default occurs and the Authority shall employ attorneys or incur other expenses, such
reasonable fees and expenses shall be paid in accordance with Section 2.2(f) of this Agreement.
-16-
ARTICLE VIII
Additional Provisions
Section. 8.1. Conflict of Interest; Authority Representatives Not Individually
Liable. No member, official, or employee of the Authority shall have any personal interest,
direct or indirect, in this Agreement, nor shall any such member, official, or employee
participate in any decision relating to the Agreement which affects his personal interests or the
interests of any corporation, partnership, or association in which he is, directly or indirectly,
interested. No member, official, or employee of the Authority. shall be personally liable to the
Redeveloper, or any successor in interest, in the event of any default or breach by the Authority
or for any amount which may become due to the Redeveloper or successor or. on any
obligations under the terms of this Agreement, except in the case of willful misconduct.
Section 8.2. EEC ual Employment Opportunity. The Redeveloper., for itself and its
successors and assigns, agrees that during the construction of the Minimum Improvements
provided for in this Agreement that it will comply with all: applicable equal employment
opportunity and non-discrimination laws, ordinances and regulations.
Section 8.3. Titles 'of Articles and Sections. Any titles of the several parts, Articles,
and Sections of this Agreement are inserted for convenience of reference only and shall. be
disregarded in construing or interpreting any of its provisions.
Section 8.4. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand, or other communication under this Agreement by either party to
the other shall be sufficiently given or delivered if. it is dispatched by registered or certified
mail, postage prepaid, return receipt requested, transmitted by facsimile, delivered by a
recognized overnight courier or delivered personally; and
(a) in the case of the Redeveloper, is addressed to or delivered personally to the
Redeveloper at 4611 Palmgren Lane, N.E., Rogers, Minnesota 55374.
(b) in the case of the Authority, is addressed to or delivered personally to The
Housing and Redevelopment Authority In and For the City of Fridley, 4701 Highway 61,
Fridley, Minnesota, 55110, Attention: Executive Director.
or at such other address with respect to either party as that party may, from time to time,
designate in writing and forward to the other as provided in this Section.
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Section 8.5. Counterparts. This agreement is executed in any number of counterparts,
- - each of which shall constitute one and the same instrument.
Section 8.6. Time of the Essence. Time is of the essence of this Agreement.
Section 8.7. Assignability of Agreement. The parties agree that, after issuance of the
Certificate of Completion, the Redeveloper ,may assign all right, title and interest in this
Agreement, subject to its terms and conditions.
-18-
ARTICLE IX
Termination of Agreement; Expiration
Section 9.1. Termination. The Authority may terminate this Agreement as provided
herein, and otherwise -this Agreement shall terminate upon payment of the Note and the
satisfaction of the Authority Mortgage. in accordance with its terms and the discharge of all of
the Redeveloper's and Authority's other obligations hereunder, but no such termination shall
terminate any indemnification or other rights or remedies arising hereunder due to any Event of
Default which occurred prior to such termination.
Section 9.2. Sections to Survive Termination. Section 6.3 shall, in addition to the
other surviving provisions referenced in Section 9. 1, survive the termination of this Agreement.
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly
executed in its name and behalf by its duly authorized representatives, and the Redeveloper. has ..
caused this Agreement to be duly executed in its name and behalf by its duly authorized
representatives on or as of the date first above written.
G:\ WPDATA \F \FRIDLEY \19 \DOC \CONTI.DOC
- _ .. .. .: a i:. : "�• s - .. ., • . .
-19-
Dated:
HOUSING AND REDEVELOPMENT
AUTHORITY.IN AND FOR THE CITY
OF FRIDLEY, MINNESOTA
By
Its Chairman
By
Its Executive Director
STATE OF MINNESOTA )
)ss
WUNT.- OF
On this day of , 199_ before me, a notary public within
and for County, personally appeared and
to me personally known who by me duly sworn, did say that
they are the Chairman and Executive Director of the Housing and Redevelopment Authority In
and For the City of Fridley, Minnesota, a political subdivision of the State of Minnesota, on
behalf of said Authority.
Notary Public
G:\ WPDATA \F \FRIDLEY \19 \DOC \CONTI.DOC
Authority Signature Page - Contract For Private Redevelopment
-20-
Dated:
Gerald W. Paschke
Rosemary E. Paschke
STATE OF MINNESOTA )
)ss
COUNTY OF )
On this day of , 199_ before me, a notary public within and f or
County, personally appeared Gerald W. Paschke*and.Rose" mart' E:`Pasclike,
Husband and wife, to me per`sorially known and acknowledged the - foregoing instrument.
Notary Public
G:\ WPDATA \F \FRIDLEY \19 \DOC \CONTI.DOC
Redeveloper Signature Page - Contract for Private Redevelopment
-21-
SCHEDULE A
LEGAL DESCRIPTION
The following described real property located in the County of Anoka, State of Minnesota:
Lots 5 and 6, Block 4, University Industrial Park
a/k/a Main Street, Fridley, Minnesota
- �2-
SCHEDULE B
CERTIFICATE OF COMPLETION
WHEREAS, the Housing and Redevelopment Authority In and For the City of Fridley,
Minnesota, a political subdivision of the State of Minnesota (the "Authority ") and Gerald W.
Paschke and Rosemary E. Paschke (the "Redeveloper ") have entered into a Contract for Private
Redevelopment (the "Agreement") dated as of May 1, 1997, regarding certain real property
legally described in the attached Exhibit 1 (hereinafter referred to and referred to in the
Agreement as the "Redevelopment Property"); and
WHEREAS, the Agreement contains certain conditions and provisions requiring the
Redeveloper to construct improvements upon the Redevelopment Property (hereinafter referred
to and referred to in the Agreement as the "Minimum Improvements "); and
WHEREAS, Section 4.4 of the Agreement requires the Authority to provide an
appropriate instrument promptly after the substantial completion (as defined in the Agreement)
of the Minimum Improvements so certifying said substantial completion;
NOW, TMWOU jri cpmpliance *Ith said Section 4.4 of t1w. A.grepment, this is to..
-certify that the- Redeveloper 'has '•substantially completed .tthq. Minimum. - Improvements
accordance with the conditions and provisions of the Agreement relating solely #o the
obligations of the Redeveloper to-construct the Minimum Improvements (including the dates
for beginning and completion thereof), and this certification shall be a conclusive determination
of satisfaction and termination of the agreements and covenants in the Agreement with respect
to the obligations of the Redeveloper, and its successors and assigns, to construct the Minimum
Improvements and the dates for the beginning and completion thereof.
-23-
Dated: , 19_
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF FRIDLEY, MINNESOTA
By
Its Chairman
By
Its Executive Director
STATE OF MINNESOTA )
)ss
COUNTY OF )
On this day of , 199 before me, a notary public within
and for* County, personally appeared and
to me personally known who by me duly sworn, did say that
they are the Chairman and Executive Director of the Housing and Redevelopment Authority In
Mi
and For the City of Fridley, Minnesota, a political subdivision of the State of Minnesota, on
behalf of said Authority.
This document was drafted by:
KRASS MONROE, P.A. (JRC)
Suite 1100 Southpoint Office Center
1650 West 82nd Street
Minneapolis, Minnesota 55431
612/885 -5999
Notary Public
-24-
G11:
LEGAL DESCRIPTION
Lots 5 and 6, Block 4, University Industrial Park
a/k/a Main Street, Fridley, Minnesota
-25
SCHEDULE C
NOTE $60,000
UNITED STATES OF AMERICA
STATE OF MQNNESOTA
COUNTY OF ANOKA
THE HOUSING AND REDEVELOPMENT AUTHORITY
In and For
THE CITY OF FRIDLEY
LWTED REVENUE TAX INCREMENT NOTE
(7951 MAIN STREET PROJECT)
The Housing and Redevelopment Authority in and for the City of Fridley (the
"Authority "), hereby acknowledges itself to be.indebted and, for value received, promises to
pay to the order of Gerald W. Paschke and Rosemary E. Paschke (the "Registered Owner "),
or* its. registered assigns, solely from the source, to the extent and in the manner hereinafter
provided, the principal amount .of this Note, being Sixty Thousand Dollars ($60,000) (the
"Principal Amount "), together with interest thereon from February 1, 1998 at a rate of seven
percent (7.0 %) on the dates (the "Scheduled Payment Dates ") as set forth on the Payment
Schedule -attached as Exhibit A hereto and in -the amounts stated thereon (the . "Scheduled
Payments "). This Note shall be payable in semiannual installments commencing on August
1, 1999, and on the 1st day of February and August thereafter until and including August 1,
2005.
Upon 30 days' prior. written notice from the Authority to the Registered Owner, the
Principal Amount is subject to prepayment at the option of the Authority in whole or. in part
on any Scheduled Payment Date.
Each payment on this Note is payable in any coin or currency of the United States of
America which- on the date of such payment is legal tender for public and private debts and
shall be made by check or draft made payable to the Registered Owner and mailed to the
Registered Owner at its postal address within the United States which shall be designated
from time to time by the Registered Owner.
The Note is a special and limited obligation and not a general obligation of the
Authority, which has been issued by the Authority pursuant to and in full conformity with the
Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section
469.178, Subdivision 4, to aid in financing a "project ", as therein defined, of the Authority
consisting generally of defraying certain public redevelopment costs incurred and to be
incurred by the Authority within and for the benefit of its Redevelopment Project No. 1 (the
"Project Area ").
W11
TOE ' -NOTE IS NOT A GENERAL OBLIGATION OF THE CITY, THE
AUTHORITY OR THE STATE OF MINNESOTA (THE "STATE "), AND NEITHER THE
CITY, THE AUTHORITY, THE STATE NOR ANY POLITICAL SUBDIVISION
THEREOF SHALL BE LIABLE ON THE NOTE, NOR SHALL THE NOTE BE
PAYABLE OUT OFANY FUNDS OR PROPERTIES OTHER THAN AVAILABLE TAX
INCREMENT, AS DEFINED BELOW.
The Scheduled Payment of this Note due on any Scheduled Payment Date is payable
solely from and only to the extent that the Authority shall have received as of such Scheduled
Payment Date, "Available Tax Increment" which is defined in the Contract for Private
Redevelopment between the Authority and the Registered Owner (the "Agreement ") as tax
increment received as of a Scheduled Payment Date with respect to certain real property
described in the attached Exhibit A (hereinafter referred to as the "Redevelopment Property")
which real property is located within the City's Tax Increment Financing District No. 3.
The Authority shall pay on each Scheduled Payment Date to the Registered Owner the
lesser of the Available Tax Increment and the Scheduled Payment due hereon on that date.
To the extent that on.any Scheduled Payment Date the Authority is unable to make the total
Scheduled Payment. due on such date as a result of its having received as of such date
insufficient Available Tax Increment, such failure shall not constitute a..default under this
Note and any such °deficiency or unpaid portion: shall. be paid on any subsequent Scheduled
Payment_Date'from the Available Tai Increment. .,On August 1; 2005, the maturity date of
this Note, any unpaid portion shall be deemed to have been paid in full. :
This Note shall not be payable from or constitute a charge upon any funds of the
Authority, and the Authority shall not be subject to any liability hereon or be deemed to have
obligated itself to pay hereon from any fiords except the Available Tax Increment, and then
only to the extent and in the manner herein specified.
The Authority makes no representations or covenant, express or implied, that the
revenues described herein will be sufficient to pay, in whole or in part, the amounts which
are or may otherwise become due and payable hereunder.
The Authority's payment obligations hereunder shall be further conditioned on the
fact that there shall not at the time have occurred and be continuing an Event of Default
under the Agreement, and, further, if pursuant to the occurrence of an Event of Default under
the Agreement the Authority elects to terminate the Agreement, the Authority shall have no
further debt or obligation under this Note whatsoever. Reference is hereby made to the
provisions of the Agreement for a fuller statement of the obligations of the Redeveloper and
of the rights of the Authority thereunder, and said provisions are hereby incorporated by
reference into this Note to the same extent as though set out in full herein. The execution and
delivery of this Note by the Authority, and the acceptance thereof by the Redeveloper, as the
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initial Registered Owner hereof, shall conclusively establish this Note as the "Note" (and
shall conclusively constitute discharge of the City's obligation to issue and deliver the same
to the Redeveloper) under this Agreement.
The Registered Owner shall never have or be deemed to have the right to compel any
exercise of any taxing power of the Authority or of any other public body, and neither the
Authority nor any director, commissioner, council member, board member, officer, employee
or agent of the Authority, nor any person executing or registering this Note shall be liable
personally hereon by reason of the issuance or registration hereof or otherwise.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things
required by the Constitution and laws of the State of Minnesota to be done, to. have
happened, and to be. performed precedent to and in the issuance of this Note have been done,
have happened, and have been performed in regular and due form, time, and manner as
required by law.
This Note may be assigned but upon such assignment the assignor shall promptly
notify the Executive Director of the Authority at the offices of the Authority by registered
mail, and the assignee shall surrender the same to. the Authority either in exchange for a new
fully registered note or for transfer of this Note on the registration records for the Note
maintained by the Authority. Each such assignee shall take this Note subject to the foregoing
condition and subject to all provisions state or referenced herein.
The Authority has . elected to issue-this Noie as a non -tax exempt obligation and
accordingly does not anticipate that the interest on this Note is or will be generally exempt
from federal or state income taxes, and the Authority makes no representation or covenant
with respect to any such exemption.
IN WITNESS WHEREOF, the Authority has caused this Note to be executed by the
manual signatures of its Chairman and Executive Director and has caused this Note to be
dated
Chairman Executive Director
This instrument was drafted by:
Krass Monroe, P.A. (JRC)
Suite 1100 Southpoint Office Center
1650 West 82 "d Street
Bloomington, Minnesota 55431
(612) 885 -5999 .
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CERTIFICATE OF REGISTRATION
It is hereby certified that the foregoing Note, as originally issued on ,
1997, was on said date registered in the name of Gerald W. Paschke and Rosemary E. Paschke and
that, at the request of said Registered Owner of this Note, the undersigned has this day registered
this Note as to principal and interest on the Note in the name of such Registered Owner, as
indicated in the registration blank below, on the books kept by the undersigned for such purposes.
Name of -
Registered Owner
Gerald W. Paschke
And Rosemary E. Paschke
Date of
Registration
'199
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Signature of
Executive Director
EXHIBIT A
PAYMENT SCHEDULE
SCHEDULED PAYMENT DATES
August 1, 1999
February 1, 2000
August 1, 2000
February 1, 2001
August 1, 2001
February 1, 2002
August 1, 2002
February 1, 2003
August '1, 2003
February 1, 2004
August 1, 2004
February 1, 2005
August 1, 2005
Kil
SCHEDULED PAYMENTS
$6,242.00
$6,242.00
$6,242.00
$6,242.00
$6,242.00
$6,242.00
$6,242.00
$6,242.00
$6,242.00
$6,242.00
$6,242.00
$6,242.00
$6,242.00
SCHEDULE D
SITE MPROVEMENTS
Site Preparation including the following:
Export of poor soils
Import of fill
Testing
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SCHEDULE E
7 T
d i- NUnnesota. Business Assistance Form''
' a C'' Minnesota Department-of Trade and Economic Development
a A r .
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Please type or print In dark: ink.
1. Funding government agency name
2. Agcncy street addrrss
3. City 14, Zip Code S. Phone number (area code) 1 G. Fa:, number (arra code)
7. Contact name • S. Typc of goyrrnmcnt agency
city _County _Regional _Start
_ Othc (pits indicate)
9. Name of -IIF distiki ('d applicabic)
' PLcse cornoLte one form for ee.:.h business project your agency assisted with 525.000 or more in public funds.
Please send completed Corm annually by March I to: or fax report to:
Minncsom Business Ass^•
ist- cr Form (612) 296-1290
Minncso:a Department of-1 radc and Econotnic Dcticlopmcnt
S�J �'(cco Square For information, cult:
121 East 7tn Place (G 12) 297 -1291 or 1 -SOO- 657 - IS5S
St. P:iui, Minn sofa 55101
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SCHEDULE F
SITE PLAN
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-V' OCT -08 -199? 1 ?:14 RYBAK 8 ASSOC ADVERTISING 612 929 6863 P.02
Cover:
OUTLINE FOR FRIDLEY SPECIAL SECTION
Twin Cities Business Monthly, December 1997
1018197 (Version 1)
BUSINESS - FRIENDLY FRIDLEY
GATEWAY TO THE GREAT NORTH METRO AREA
I. Feature: (800 -1,000 words)
Prolotype Headline: Forging Business Friendly Partnerships
Subhead. • Fridley gets high marks for fiscal responsibility and progressive vision
Sample Headline: The North Metro's Most Convenient Business Address
Subhead Location, labor force and a "Can Do" business attitude
Text: Fact - filled, anecdotal overview of Fridley as the commercial crossroads of the great
north metro area. Fridley is home to an impressive list of leading companies that find its
location easily accessible to the entire Twin City region. Fridley enjoys a creative mix of
progressive businesses and a talented labor force- -one of the region's largest pools of
highly skilled and well - educated workers (comment from Willamette Industries). Its
business - friendly reputation is well -known among companies that are located there
(anecdotes from Medtronic, NT International, Onan, and others). Fridley is also home to
one of the region's most attractive and accessible development sites --the Fridley Executive
Center. The Fridley economic development team makes business relocation or expansion
a painless proposition, always going the extra mile to expedite projects (Northco Real
Estate). Dave J. on redevelopment opportunities, brownfield reclamation? Quote from
Chamber of Commerce on business networking.
Sidebar: Supporting Business Needs (text remains as is)
Art suggestions: Graphic showing the distance from Fridley to Mpls, St. Paul &.airport
Bottom Line Resource Graphic (as is)
Office building shots
Industrial shots
Workforce shot (people leaving/coming to work)
OCT -08 -1997 17:15 RYBAK & ASSOC ADVERTISING 612 929 6863 P.03 41°
11. Feature (800 -1,000 words)
Prototype Headline: Fridley, a Great Place to Live and Work
Subhead.- Business and the City of Fridley have joined forces
Srnnple Headline: Fridley: A First Ring Suburb with First Rate Amenities
Subhead: A great place to raise your family and your business potential
Text: Fridley's quality of life makes doing business there a pleasure. Fridley's many
hotels, banks, restaurants, health clubs and retail stores draw people from all over the
northern suburbs. Fridley ranks first among the northern counties in acres of park and
recreation land, with 37 parks spanning 490 acres - -about seven percent of its total land
area. Descriptions of Moore Lake and Rice Creek, frontage on the Mississippi, etc.
Cultural amenities include Banfill Locke Center for the Arts, as well as quick access to
cultural attractions in Minneapolis and St. Paul. Description of Fridley's four school
districts and their various honors, as well as the high number of business - training
partnerships they offer to local businesses ("Pathways" program contact needed).
Interviews with nave Ryan (or another Realtor) regarding the safe community and its
variety of housing, from starters though executive level. (Would be good to find local,
semi -big business owner who also lives in Fridley for quotes and comments- -could be
potential sidebar.)
Art suggestions: Many photos from Merrill Busch brochure are perfect for this section.
H1. Feature: Fridley Executive Center (400 -500 words)
Sample Headline: Fridley Executive Center's Thigh Vi ibli
w� i
Subhead: 100,000 vi ' P.-F -
Text: Fridley Executive Center offers a prestigious park -like setting suited for everything
whether it's a corporate headquarters or an office park. Description of its high visibility
location (100,000 cars a day pass by) and instant access to the freeway network.
description of surrounding site amenities (Mpls skyline view, Moore lake) and on -site
amenities (sewer and water, building pads, etc.) Quotes from Dave J. on how Fridley
government will work with businesses wishing to relocate there.
Art suggestions: Most attractive photo available of the Executive Center.
N. Statistics (one page)
Headline: Fridley at Your Fingertips
.Subhead: Bottom line benefits for your business
OCT -08 -1997 1 ?:15 RYBAK 8 ASSOC ADUERTISING 612 929 6863 P.04
Categories: Work Force, Income, Education, Banking and Finance, Transportation, Real
Estate, Housing (other potential categories: acres available for development?
Redevelopment? Investment made/planned for `96 or `97)
Art suggestions: Prototype art looks good
Submitted by:
Deborah Caulfield Rybak
phone: 929.1099
fax: 929.6863
TOTAL P.04
OCT -08 -97 WED 12:34 PM FAX NO, P. 02
t7 � -
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220 Somif SIXIN SIut►I - SIIIII- 50U, MINNi-Wn i 7, 9N` .154112 -4 5(17 f)ilii i 6]2 /.i:i'J -7171 Fna 1,17. /:iii) S�(1G
October 8, 1997
CITY OF FRIDLEY- HRA
PUBLISHING AGREEMENT
TWIN CITIES Business Monthly and the CITY OF FRIDLEY — HRA agree to the
following:
• TWIN CITIES Business Monthly will produce a high quality 8 -page supplement in
the December 1997 issue of TWIN CITIES with a circulation of 35,000.
• Six pages of the supplement will be dedicated to editorial with the remaining two
pages set aside for sponsor ads. Sponsors will also receive logo identification on the
cover of the supplement and be given the opportunity to contribute editorial in the
form of an advertorial in the supplement.
• The City of Fridley -HRA will be responsible for a total of $15,000 in seed money for
the project, It is our understanding that at the present time, the city and MEPC °
American Properties have committed to $7,500 each, with the possibility of a third
sponsor yet to be determined.
• TWIN CITIES staff will be responsible for selling advertising near the special
supplement, editorial development, writing, editing, design, paper, printing, prep, up
to six photographs and four 4 -color separations.
• The City of Fridley - HRA agrees to actively support TWIN CITIES staff by
providing contact names for potential advertisers, a letter of endorsement and any
other additional help that would be necessary to successfully complete the project.
• Should advertising and sponsorship revenue fall below projections and the project
end prematurely a "kill fee" will be charged for any out -of- pocket costs incurred up to
a maximum of $2,000.
• TWIN CITIES Business Monthly will allocate $1,500 (included in the $15,000 seed
money) for extra copies of the December issue or reprints of the supplement, if a third
sponsor is secured. In the event that a third sponsor does not come in, the City of
Fridley — HRA will be responsible for funding any reprints /extra copies of the section
desired.
We, at TWIN CITIES Business Monthly, are very excited to be coordinating this project
with the City of Fridley - HRA. We will do everything possible to make this an
outstanding marketing piece for the city.
Willham W. Burns, Executive Director, City of Fridley — HRA Date
Pubhshcd by MSP Communications