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HRA 12/03/1998 - 6304a -_ HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, DECEMBER 3, 1998 7:30 P.M. PUBLIC COPY (Please return to Community Development Department) CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, DECEMBER 3,1998,7:30 P.M. AGENDA LOCATION: City Council Chambers CALL TO ORDER ROLL CALL APPROVAL OF MINUTES October 1, 1998 CONSENT AGENDA Consider Agreements Between the Fridley HRA and the Cities of Mounds View, New Brighton, and Blaine to act as Fiscal Agent for 1999 Metro Home & Garden Fair .............. 1 Consider Service Agreements with the Center Energy & Environment (CEE) for the Administration of the HOME Rehabilitation Grant Program ............................ 2 Authorize Chairperson to Sign the Final Plan Mylars for the Fridley Executive Center ........................... . 3 Authorize Proposals for Professional Services to Assist HRA with AUAR and ISP Applications for Medtronic Development ............. 4 Approve Resolution Authorizing Pay Increase for HRA Employees ... ............................... 5 Approve Resolution Authorizing Extension of Development Contract for Noah's Ark ............................. 6 Claims and Expenses (Oct. & Nov.) . ............................... 7 INFORMATION ITEMS Update on Housing Program Evaluation Internship Project ................8 Medtronic Update ................. ..............................9 Request for TIF Assistance by Onan & Murphy Warehouse ...............10 OTHER BUSINESS ADJOURNMENT CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING OCTOBER 1, 1998 CALL TO ORDER: Chairperson Commers called the October 1, 1998, Housing and Redevelopment Authority meeting to order at 7:30 p.m. ROL CALL• Members Present: Larry Commers, John Meyer, Pat Gabel, Jim McFarland Members Absent: Virginia Schnabel Others Present: Barb Dacy, Community Development Director Grant Femelius, Housing Coordinator Jim Casserly, Financial Consultant Rick Pribyl, Finance Director Craig Ellestad, Accountant Ben Martig, Housing /Special Projects Intern Bill Schatzlein, Affordable Suburban Housing, Inc. A TH R_ EETIN � � t AND REDE MIN �TEc 8 H U I LOPME T MO —N-: by Mr. seconded b 1998 Housing and Meyer, yer, Selo by Mr. McFarland, to approve g pment Authori esent the September 3, Authority minutes as presented. UPON A VOICE VOTE ALL VOTING AYE, CHAIRPERSON COMME RS DECLARED THE MOTION CARRIED UNANIMOUSLY. �NSENT AGENDA 1. 2. A list of additional expenses was distributed uted to the Commissioners for review and HOUSING & REDEVELOPMENT AUTHORITY, OCTOBER 1, 1998 PAGE 2 Mr. Commers stated he would like staff to provide a breakdown of Administrative Personnel Services and City Insurance Allocations at the November meeting, if possible. MQIIQN by Mr. Meyer, seconded by Mr. McFarland, to approve the Consent Agenda as presented. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COWERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: 3. Ktt�V v ��.,� r. - ex lained that this item was tabled at the September meeting to allow Mr. Femelius p He noted that a review appraisal was staff to obtain a review appraisal of the property. which came in approximately $7,000 to $8,000 less than ave indicated that the completed appraisal was presented to the bank. They and that they appraisal. The review app the purchase price of the property they are not interested in renego;et for it on the open market. Mr. Femelius has would like to see what they can g wish to reconsider. This item can event that they requested that they contact us in tnda for further consideration. be officially removed from the age Agenda. MOTION by Mr. McFarland, seconded by Mr. Meyer, to strike Item 3. from the UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, CHAIRMAN COMMERS D THE MOTION CARRIED UNANIMOUSLY. N DECLARE _ _ . �, � ci IRl1RE3nni NFU 4. VCNTL , fQEVEILE Under on behalf of Affordable Suburban N E Housing, the vacant lot at 5800 2 S Mr. Femelius explained that to developn� M on the site which would bu affordable Inc., has submitted a proposal The Y the proposal, a new home would bten 80 � oftmedian income ►units. to families whose incomes home buyer• cured to follow all of need to be a firs ousing would be required note that Affordable Suburban H constructed with a fines that have been established for the Mr. Femelius n guidelines They e HRA design and construction 9 a house would have to be reserve the site the a program. Additionally, Site e value of both the land d but es Scattered Si 95,000 including the ation Agreement which reared. minimum value of $ ht and plans were p P d be required to execute the e a buyer was $O' resented to the HRA• The would eriod of time package would be p for a specified p accomplish the entire p After such was accomplish for a mOtt9age loan. buyer would need to q d HOUSING & REDEVELOPMENT AUTHORITY, OCTOBER 1, 1998 PAGE 3 Mr. Femelius stated that in order to make this project affordable, the petitioner has asked that the HRA sell the land for $1.00 and issue a second mortgage in favor of the end buyer which would defer the land sale price of approximately $22,000 until the home is resold in the future, or is no longer occupied by the buyer. This would reduce the first mortgage amount. Mr. Commers asked if this would meet the City's replacement affordable housing obligations with respect to the Federal government. Mr. Femelius stated he would need to research this. However, if the property within the guidelines, the City would be working toward to that family al whose income falls Mr. Commers asked that staff research the federal requirements to determine whether this would meet the City's affordable housing replacement obligations. Ms. Gabel asked how the lender views the land value. Mr. Schatzlein stated the house will be appraised out at the value of both the land and the building. Since the HRA will have the second mortgage, the lender will view this as equity. Mr. Femelius noted that at this time staff is seeking conceptual approval. If approved, the developer would need to find a buyer and prepare the necessary plans for HRA approval. MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the concept for the Proposal by Affordable Suburban Housing, Inc., to develop vacant land at 5800 Second Street N.E., subject to approval of a final plan by the HRA. UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. CONRin =Q D00f%, i ----- - - -- Ms. Dacy outlined the changes which were made to the Letter of Intent dated September 24, 1998, and executed by Medtronic. Mr. Commers asked if Mayor Jorgenson and the Council members have approved of the execution of the Letter of Intent. Ms. Dacy explained that the Letter of Intent is between the HRA and Medtronic. The City will later be asked to approve the master plan process and any transportation planning issues /changes. HOUSING & REDEVELOPMENT AUTHORITY, OCTOBER 1, 1998 PAGE 4 Mr. Casserly stated that this document expresses the basic outlines of agreements yet to come. By executing the document, the HRA is basically consenting to the terms. The Council members have been extensively briefed on the document, and they have indicated their consent to the items in the Letter of Intent. Mr. Commers stated he merely wants to assure that there are no interferences in the event that one of the issues arises in the future. Mr. Casserly stated this remains a concern to all and is an issue which will need to be resolved. One option may be to have some type of agreement which would include the City Council. MOTION by Ms. Gabel, seconded by Mr. Meyer, to approve Resolution No. HRA 17- 1998, Authorizing Execution and Delivery of a Letter of Intent by and between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, and Medtronic, Inc. UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. INFORMATION ITEMS: 6. UPDATE ON HOUSING AND SPECIAL PROJECTS INTERN: Mr. Ben Martig, the Housing and Special Projects Intern, was introduced to the HRA members. He provided a brief summary of his background as well as some of the responsibilities he will have during his internship at Fridley. OTHER BUSINESS: Mr. Fernelius provided the HRA members with an update on the Housing program. He noted that four reports were included in a packet. Mr. Commers stated that in regard to the Delinquency Report, he still is waiting for staff to put together some type of policy to address this ongoing problem. Ms. Dacy stated that staff prepared a memo and the HRA did agree on some of the administrative procedures that would be implemented. A copy will be sent to the HRA members. Mr. Meyer stated that he continues to remain concerned about the few loans that have been made to residents in the Hyde Park area. He feels the program is just not reaching that area, and perhaps the policy is too liberal for the rest of the areas in the City. The program is failing to do the job that the HRA originally planned to accomplish. HOUSING & REDEVELOPMENT AUTHORITY, OCTOBER 1, 1998 PAGE 5 Ms. Gabel agreed with Mr. Meyer that perhaps the income guidelines are not appropriate. Ms. Dacy stated that she intends to conduct some type of survey or demographic studies to see where the mismatch is between income guidelines and housing needs. If possible, she would like to have this information available at the December meeting. ADJOURNMENT: MOTION by Mr. Meyer, seconded by Mr. McFarland, to adjourn the meeting. UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING WAS OFFICIALLY ADJOURNED AT 8:33 P.M. Respectfully submitted, I O- yy-)O- L'0- 7 Tamara D. Saefke Recording Secretary a, MEMORANDUM HOUSING ,- � l REDEVELOPMENT AUTHORITY DATE: November 25, 1998 TO: William W. Bums, Executive Director of HRA f�J✓ FROM: Barbara Dacy, Community Development Director Grant Femelius, Housing Coordinator SUBJECT: Consider Agreements Between the Fridley HRA and the Cities of Mounds View, New Brighton and Blaine for the 1999 North Metro Home and Garden Fair. The first annual North Metro Home and Garden Fair will be held on Saturday, February 27, 1999 at the Mounds View Community Center. The fair is spon- sored by the cities of Fridley, Mounds View, New Brighton, and Blaine. Each city has agreed to contribute $2,000 toward the cost of event. The Fridley HRA will act as the fiscal agent to collect the funds from each city and then pay the expenses for the fair. Rather than draft a four party agreement, each city will execute a separate agreement with the Fridley HRA. Attached are copies of the agreements which have been prepared. Fritz Knaak the Fridley City Attorney has reviewed the documents and feels they are acceptable. Recommendation Staff recommends the HRA approve the individual agreements with the cities of Mounds View, New Brighton and Blaine for the 1999 North Metro Home and Garden Fair. M -98 -229 1 Agreement This Agreement is made between the Fridley Housing and Redevelopment Authority (hereinafter the "HRA ") and the Blaine Economic Development Authority (hereinafter, the "EDA ") on this day November 5, 1998. The City of Blaine agrees to co- sponsor a mutli- community home and garden fair with the cities of Mounds View, Fridley and Arden Hills. The fair, to be known as the North Metro Home and Garden Fair, will be held at the Mounds View Community Center on February 27, 1999 from 9:00 a.m. to 3:00 p.m. The fair will encompass many aspects of home building or home remodeling, and is intended to serve as a benefit to the residents of the four cities sponsoring the event. The HRA agrees to act as the fiscal agent responsible for finances associated with the fair. The EDA agrees to pay $2,000 to the HRA as its share of the costs to be incurred by the HRA for the planning, advertising and execution of the North Metro Home and Garden Fair. The HRA agrees to indemnify and hold harmless the EDA and its officers, agents, and employees against any claim, demand, suit, action, or other proceeding arising pursuant to the Agreement resulting from actions or failures to act by the HRA or its governing body members, officers, agents, or employees, provided that the foregoing indemnification shall not be effective for any actions of the HRA that are not contemplated by this Agreement. The HRA acknowledges that it has sole responsibility for paying all amounts due to various parties servicing the North Metro Home and Garden Fair. The HRA agrees that the $2,000 paid by the EDA pursuant to this Agreement will be used solely for the purposes of planning, advertising and executing the North Metro Home and Garden Fair. The HRA further agrees to refund any portion of the $2,000 that is generated through revenues from the North Metro Home and Garden Fair on a pro -rata basis among the participating cities. If no revenues are generated from the North Metro Home and Garden Fair, the EDA acknowledges that it will not be refunded any portion of the $2,000 paid to the HRA. The HRA acknowledges that the City of Blaine is entitled to the use of a booth at the North Metro Home and Garden Fair. FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY By: Lawrence R. Commers Its Chair By: William W. Burns Its Executive Director BLAINE 7xr4� NU DEVELOPMENT AUTHORITY By Tom Ryan Its Presidet�) i By: Roge W. Fr er Its Executive Director C:VWy D=tnwtsW=e and Garden ShowW9rwaWt doe 1 -A . t, AGREEMENT. This agreement is made between the Fridley Housing Redevelopment Authority (hereinafter the "Fridley HRK) and the Mounds View Economic Development Authority (hereinafter, the "Mounds View EDA") on this day November 9,1998. The City of Mounds View agrees to co- sponsor a multi - community home and garden fair with the cities of Blaine, Fridley and New Brighton. The fair, to be known as the North Metro Home and Garden Fair, will be held at the Mounds View Community Center on February 27, 1999 from 9:00 a.m. to 3:00 p.m. The fair will encompass many aspects of home building or home remodeling, and is intended to serve as a benefit to the residents of the four cities sponsoring the event. The Fridley HRA agrees to act as the fiscal agent responsible for the finances associated with the fair. The Mounds View EDA agrees to pay $2,000 to the Fridley HRA as its share of the costs to be incurred by the Fridley HRA for the planning, advertising and execution of the-North Metro Home and Garden Fair. Except for any breach of the representation of the Fridley HRA, any willful misrepresentation of any willful or wanton misconduct of the Fridley HRA, or the negligence or other wrongful act or omission of any officers, agents and employees of the Fridley HRA, the Mounds View EDA agrees to indemnify and hold harmless the Fridley HRA and its officers, agents, employees against any claim, demand, suit, action, or other proceeding arising pursuant to the Agreement resulting from actions or failures to act by the Fridley HRA or its governing body members, officers, agents, or employees, provided that the foregoing indemnification shall not be effective for any actions of the Fridley HRA that are not contemplated by this Agreement. The Fridley HRA acknowledges that it is has sole responsibility for paying all amounts due to various parties servicing the North Metro Home and Garden Fair. The Fridley HRA agrees that the $2,000 paid by the Mounds View EDA pursuant to this agreement will be used solely for the purposes of planning, advertising and executing the North Metro Home and Garden Fair. The Fridley HRA further agrees to refund any portion of the $2,000 that is generated through revenues from the North Metro Home and Garden Fair on a pro -rata basis among the participating cities. If no revenues are generated from the North Metro Home and Garden Fair, the Mounds View EDA acknowledges that it will not be refunded any portion of the $2,000 paid to the Fridley HRA. The Fridley HRA acknowledges that the City of Mounds View is entitled to the use of a booth at the North Metro Home and Garden Fair. Mounds View Agreement ■ B FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY By Lawrence R. Commers Its Chair By: William W. Bums Its Executive Director MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY By: Duane McCarty Its President By: Charles S. Whiting Its Executive Director Mounds View Agreement • MOV -23 -98 MON 1:39 PM CITI OF.NEWARIGHTOMM FAX N0. 6126382044 P. 2 Agreement This agreement is made between the Fridley Housing Redevelopment Authority (hereinafter the "Fridley HRA") and the City of New Brighton (hereinafter, "New Brighton") on this day November _,1998. The City of New Brighton agrees to co- sponsor a multi- community home and garden fair with the cities of Blaine, Fridley and Mounds View. The fair, to be known as the North Metro Home and Garden Fair, will be held at the Mounds View Community Center on February 27, 1999 from 9:00 a.m. to 3:00 p.m. The fair will encompass many aspects of home building or home remodeling, and is intended to serve as a benefit to the residents of the four cities sponsoring the event. The Fridley HRA agrees to act as the fiscal agent responsible for the finances associated with the fair. The City of New Brighton agrees to pay $2,000 to the Fridley HRA as its share of the costs to be incurred by the Fridley HRA for the planning, advertising and execution of the North Metro Home and Garden Fair. The Fridley HRA acknowledges that it is has sole responsibility £or.paying all amounts due to various parities servicing the North Metro Home and Garden Fair. The Fridley HRA agrees that the $2,000 paid by the City of New Brighton pursuant to this agreement will be used solely for the purposes of planning, advertising and executing the North Metro Home and Garden Fair. The Fridley BRA further agrees to refund any portion of the $2,000 that is generated through revenues from the North Metro Home and Garden Fair on a pro -rata basis among the participating cities. If no revenues are generated from the North Metro Home and Garden Fair, the City of New Brighton acknowledges that it will not be refunded any portion of the $2,000 paid to the Fridley HRA. The Fridley BRA acknowledges that the City of New Brighton is entitled to the use of a booth at the North Metro Home and Garden Fair. FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY By: Lawrence R Commers Its Chair By: William W. Burns Its Executive Director 1: =1W.0w9CWAWA.WM 1 _® CITY OF NEW BRIGHTON Robert Benke Its Mayor M: Matthew S. Fulton Its Manager MEMORANDUM HOUSING REDEVELOPMENT DATE: November 25, 1998 AUTHORITY TO: William W. Bums, Executive Director of HRA '14�/ FROM: Barbara Dacy, Community Development Director Grant Femelius, Housing Coordinator SUBJECT: Consider Service Agreements with the Center for Energy and Environment (CEE) for Administration of the HOME Rehabilitation Grant Program. This memo describes two separate agreements for HRA consideration at the December 3,1998 meeting. 1. Extension to 1996 Contract In October of 1996 the HRA and CEE entered into a service agreement for administration of the HOME rehabilitation grant program. The program provides assistance to low- income homeowners for home improvements and basic repairs. CEE's responsibilities include processing the applications, verifying eligibility, conducting inspections, preparing work write -ups, monitoring work progress, and verifying that all of the work has been done in a satisfactory manner. Prior to CEE's involvement this function was administered by ACCAP. The term of the original agreement ran from October 15, 1996 through December 31, 1997. Due to an oversight the contract should have been extended earlier this year. The proposed extension would allow CEE to process applications and complete the files through December 31, 1999. The HOME funds can only be used in specific target neighborhoods. CEE has received numerous inquires about the program and has over 20 applications pending. Attached are a copy of the extension agreement and a map of the target areas. 2 CEE Service Agreements November 25, 1998 Page 2 This is a separate agreement between the HRA and CEE which covers the portion of the program funded with 1998 HOME money. The term of the agreement would run from December 3, 1998, to July 1, 2000, which runs concurrent with the County's time line. The budget for the program is $81,250 ($65,000 in HOME funds and $16,250 in HRA funds). A copy of agreement is attached. Staff recommends that the HRA take the following action: Approve the extension to the agreement with the Center for Energy and Environment for administration of the 1996 HOME Rehabilitation Grant Program. 2. Approve the agreement with the Center for Energy and Environment for administration of the 1998 HOME Rehabilitation Grant Program. M -98 -230 2 -A AGREEMENT FOR ADMINISTRATIVE SERVICES Between CENTER FOR ENERGY AND ENVIRONMENT And HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY The Agreement, made the 111' day of October, 1996, by and between The Housing and Redevelopment Authority In and For the City of Fridley, a body corporate and politic existing under the laws of the State of Minnesota (the "Authority"), and the Center for Energy and Environment, a 501(c)(3) non - profit corporation, with its offices at Butler Square Building, 100 North 61" Street, Suite 412A, Minneapolis, Minnesota 55403 -1520 (the "Contractor") is hereby amended. Section 1 of the agreement shall read: TERM The project to be accomplished by the Contractor hereunder shall run from October 15, 1996 to December 31, 1999 unless earlier terminated as provided herein, or until all obligations set forth in this Agreement have been satisfactorily fulfilled, whichever occurs first. All other sections of the Agreement shall remain as written in the original agreement. IN WITNESS WHEREOF, the parties here hereunder set their hands as of the date written below: HOUSING AND REDEVELOPMENT AUTHORITY CENTER FOR ENERGY AND ENVIRONMENT IN AND FOR THE CITY OF FRIDLEY By— Date BY— Date Lawrence R. Commers, Chair William W. Bums, Executive Director By Date Sheldon Strom, Executive Director \WB* "\DOfS\Ad *1 \C0ffWCI\LWn ftWM \607H FRIDLEY HOME Amendmentdoc Novanber 17, 1998 B AGREEMENT FOR ADMINISTRATIVE SERVICES between CENTER FOR ENERGY AND ENVIRONMENT, INC. and HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY (1998 HOME Program) THIS AGREEMENT, made this day of , 1998, the date of the signatures of the parties herein notwithstanding, by and between the Housing and Redevelopment Authority in and for the City of Fridley, a body corporate and politic existing under the laws of the State of Minnesota (the "Authority "), and the Center for Energy and Environment, Incorporated, a 501(c)(3) non - profit corporation, with its offices at Butler Square Building, 100 North 6th Street, Suite 412 A, Minneapolis, Minnesota 55403 -1520 (the "Contractor"). WITNESSETH THAT: WHEREAS, The HOME Investments Partnership Act (the "HOME Program ") provides assistance to state and local governments to strengthen public- private partnerships to provide more affordable housing; and WHEREAS, the Authority has submitted an application to Anoka County for HOME Program funds; and WHEREAS, said application has received approval by Anoka County and the United States Department of Housing and Urban Development for the expenditure of funds, in part, to deliver the Fridley Home Improvement Grant Program (the "Program "); and WHEREAS, the Contractor has agreed to administer said Program for the Authority, which proposal has been accepted by the Authority. NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows: 1. TERM The project to be accomplished by the Contractor hereunder shall run from December 3, 1998 to July 1, 2000 unless earlier terminated as provided herein, or until all obligations set forth in this Agreement have been satisfactorily fulfilled, whichever occurs first. 98CEEContract 2. SERVICES TO BE PROVIDED A. The Contractor shall provide the following services to administer the Program: (1) Coordinate marketing efforts with the Authority and. answer questions from interested parties concerning the Program. In addition, the Contractor shall maintain up -to -date application materials including, but not limited to, application forms, program brochures and related literature. (2) Receive applications from interested parties and determine eligibility status with regard to household income, amount of assets, ownership status, type of property and other criteria as specified by the Authority. (3) Notify applicants in writing within 10 business days of receipt of application as to their eligibility status. If an application is incomplete, the Contractor shall notify the applicant within the 10 day period to request additional information. (Applicants which qualify for the Program are defined as "Program Recipients ".) (4) Verify property title records to determine whether applicant has good title to the property; confirm in writing that the applicant is current on property taxes and mortgage payments and that there are no unsatisfied judgments or liens. In addition, Contractor shall prepare the necessary Repayment Agreement to be signed and recorded prior to the start of the rehabilitation work. (5) Within 30 business days of receipt of application, the Contractor shall schedule and conduct an inspection of the applicant's property. Said inspection shall be conducted by qualified personnel of the Contractor who are trained and experienced in housing rehabilitation. Said inspection shall be used as the basis of preparing a scope of work and related project specifications. The Contractor and Authority will meet to review minimum rehabilitation standards, eligible improvements, minimum product quality, work write -up format, and bidding procedures. Said 98CEEContract scope of work shall be completed and returned to the Program Recipient within 60 days of receipt of application. (6) Contractor shall provide guidance to the Program Recipients on obtaining and evaluating estimates. Program Recipients shall have 30 days to obtain estimates. (7) Meet with Program Recipients to review estimates and assist them in selecting a remodeling contractor per the Program requirements. (8) Contractor shall submit complete file with all original documents to the Authority for review and approval. Upon Authority approval, the Contractor shall schedule and conduct a pre - construction conference with the Program Recipients and the remodeling contractor prior to commencement of the work. Contractor shall review the responsibilities of each party, procedures for payment and any other pertinent details. Finally, both parties shall execute a contract to secure performance of the project and Contractor shall issue a Proceed to Work Order. (9) Contractor shall insure that the successful remodeling contractor complies with the applicable HUD and County regulations. In addition, Contractor shall monitor performance of the rehabilitation work and assist Program Recipient in resolving disputes with the remodeling contractor, as necessary. (10) Conduct interim and final inspections and prepare the necessary documents to process payment to the remodeling contractor. B. In addition to the processing steps outlined above, the Contractor shall provide the following services: 98CEEContract (1) Comply with the Housing Rehabilitation Procedures Guide, as amended from time to time. (2) Provide the Authority with monthly reports on the status of Program applications. (3) Make payments to remodeling contractors on a timely basis, in compliance with the Federal "three -day rule ". (4) Obtain mechanic's liens from all remodeling contractors, subcontractors, and material suppliers, prior to release of any payments. C. The Contractor shall proceed with the administration of the Program as contained in the Program Budget, attached as Exhibit A and made a part of this Agreement by reference, representing Contractor's minimum responsibilities to the extent that said proposals have not been accomplished prior to the date of this Agreement as entered into and to the extent said proposals do not contradict the standards and requirements referred to above. D. It shall be the responsibility of the Contractor to meet all standards and satisfy all requirements expressed in Title I of the Housing and Community Development Act of 1974 as amended and the HUD Implementary Regulations at 24 CFR, Part 570, and any other applicable federal statutes, rules, or regulations established now or hereafter, and any applicable statutes, rules, regulations, or guidelines established now or hereafter by the State of Minnesota or any of its agencies. Should it appear to the Contractor at any time during the course of implementing said project, that the work to be done has not been explained or described in sufficient detail, or with sufficient clarity, or should it appear that any plan, proposal, or other material conflict with any standards or requirements imposed by statute, regulation, or HUD, the Contractor shall promptly contact the Authority's Housing Coordinator or other designated representative. In no event shall the Contractor proceed with administration of said project in uncertainty. The Contractor shall comply with the following requirements and standards of OMB Circular No. A -122, "Cost Principles for Non Profit Organizations" or OMB Circular No. A -21, "Cost Principles for Educational Institutions ", as applicable, and with the following Attachments to OMB Circular No. A -110: (1) Attachment A, "Cash Depositories ", except for paragraph 4 concerning deposit insurance; (2) Attachment B, "Bonding and Insurance' 98CEEContract (3) Attachment C, 'Retention and Custodial Requirements for Records ", except that in lieu of the provisions of paragraph 4, the retention period for records pertaining to individual HOME activities starts from the date of submission of the annual performance and evaluation report, as prescribed in 570.507, in which the specific activity is reported on for the final time; (4) Attachment F, "Standards for Financial Management Systems'; (5) Attachment H, "Monitoring and Reporting Program Performance ", paragraph 2; (6) Attachment N, "Property Management Standards ", except for paragraph 3 concerning the standards for real property, and except that paragraphs 6 and 7 are so modified so that (i) In all cases in which personal property is sold, the proceeds shall be program income, and (ii) Personal property not needed by the subrecipient for HOME activities shall be transferred to the recipient for the HOME program or shall be retained after compensating the recipient; and (7) Attachment O, 'Procurement Standards ". 3. PROJECT METHODOLOGY AND PROCEDURE The Contractor, in providing the services described in Section 2 of this Agreement, shall employ methods and procedures that are deemed to be appropriate, reliable, and professional by individuals, firms, and associations regularly engaged in work of a similar nature. The methods and procedures employed shall include those required by the sources of authority specified in Section 2, herein, but shall not necessarily be limited to such methods and procedures. 4. PROJECT EVALUATION AND ACCEPTANCE In order that the Authority may be kept informed of the Contractor's progress and properly evaluate the success of the Contractor in achieving the Agreement goals, the 98CEEContract Authority may make suggestions, criticisms, and recommendations to the Contractor and the Contractor shall on a monthly basis and at other times upon request by the Authority, send a written progress report to the Authority's Housing Coordinator. Said report shall a) summarize the activities and progress of the Contractor to date, b) detail special problems or difficulties that have arisen during the course of the project which need to be brought to the attention of the Authority and c) summarize any other information, problems, or proposals which the Authority needs to know in order to properly evaluate the actions of the Contractor in working towards the Agreement goal. The Contractor shall thoroughly and conscientiously implement the proposals, recommendations, and criticisms of the Authority or its designated representative, in writing, before proceeding further with the implementation of the program so that the goals of this Agreement may be met to the satisfaction of the Authority. Any deviations from the goals, standards, and requirements of the project as determined by said designated representatives of the Authority shall be corrected by the Contractor before proceeding further with the implementation of said project. 5. PROJECT ADMINISTRATION, PERSONNEL, AND RECORDS A. The Contractor shall engage in the implementation of the Program, such individuals as are necessary for its proper completion. The Contractor warrants and represents that all of its employees shall be properly trained, competent and qualified to perform the tasks assigned to them. The Contractor shall provide the Authority with such information regarding the qualifications of said individuals as required by the Authority to verify that present and subsequent services are being rendered by competent and trained people. All individuals engaged by the Contractor to perform services under this Agreement must receive express approval of the Authority before commencing any services under the Agreement. Any or all of said individuals may be regular employees of the Contractor or may be specifically employed by the Contractor as independent contractors to work on the implementation of said project. However, the Contractor shall not subcontract with any other firms, associations, consulting agencies, or other organizations for the implementation of the Program, without the expressed written approval of the Authority. B. The Contractor shall maintain records on all individuals employed by it in the implementation of the Program. Said records shall show the name and qualifications of each such individual, the hourly rate of pay 98CEEContract � •i, for each such individual, and the number of hours worked by each such individual, and the days on which such hours were worked. The Contractor shall also maintain, and complete in correct form, all other records required by the rules, regulations, or guidelines of HUD or by Title I of the Housing and Community Development Act of 1974 as amended and the HUD Implementary Regulations at 24 CFR, Part 570. The Contractor further agrees to maintain all such required records for three years after receipt of final payment or until all other pending matters are closed. 6. DATA PRIVACY All data collected, created, received, maintained, or disseminated, or used for any purposes in the course of the Contractor performance of this Agreement is governed by the Minnesota Government Data Practices Act, Minnesota Statutes 1984, Section 13.01 et. seq. or any other applicable State statutes and any State rules adopted to implement the Act, as well as State statutes and Federal regulations on data privacy. The Contractor agrees to abide by these statutes, rules, and regulations and as they may be amended. 7. NONDISCRIMINATION A. General 98CEEContract The Contractor shall comply with all federal, state, and local laws prohibiting discrimination on the basis of age, sex, marital status, race, creed, color, national origin, sexual orientation, or the presence of any sensory, mental, or physical handicap or any other basis now or hereafter prohibited by Law. These requirements are specified in Section 109 of the Housing and Community Development Act of 1974; Civil Rights Act of 1964, Title VI; Civil Rights Act of 1968, Title VIII; Executive Order 11063; Executive Order 11246; Section 3 of the Housing and Urban Development Act of 1968; and Minnesota Statutes Chapter 363. Specifically, the Contractor is prohibited from taking any discriminatory actions defined in the HUD Regulations at 24 CFR 570.602(b) (1 -3) and shall take such affirmative and corrective actions as are required by the Regulations at CFR 570.602(b)(4). B. Program Benefit The Contractor shall not discriminate against any resident or Program recipient by denying benefit from or participation in any block grant funded activity on the basis of race, color, sex, or national origin. (Civil Rights Act of 1964, Title VI; Civil Rights Act of 1968, Title VII; Section 109, Housing and Community Development Act of 1974). C. Fair Housing The Contractor shall take necessary and appropriate actions to prevent discrimination on the basis of Minnesota State law or federal law in federally assisted housing and lending practices related to loans insured or guaranteed by the federal government.'(Civil Rights Act of 1968, Title VII; Executive Order 11063; Minnesota Statutes Chapter 363). D. Employment In all solicitations under this Agreement, the Contractor shall state that all qualified applicants will be considered for employment. The words "equal opportunity employer" in advertisements shall constitute compliance with this section. 2. The Contractor shall not discriminate against an employee or applicant for employment in connection with this Agreement because of age, marital status, race, creed, color, national origin, sexual orientation, or the presence of any sensory, mental, or physical handicap, except when there is a bona fide occupational limitation. Such action shall include, but not be limited to the following: Employment; upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training. (Executive Order 11246 as amended and Minnesota Statutes Chapter 363.) 3. To the greatest extent feasible, the Contractor shall provide training and employment opportunities for lower income residents within the area served by block grant assisted projects (Section 3, Housing and Community Development Act of 1968, as amended). 98CEEContract 3• E. Contractors and Suppliers No contractor, subcontractor, union, or vendor engaged in any activity under this Agreement shall discriminate in the sale of materials, equipment, or labor on the basis of age, sex, marital status, race, creed, color, national origin, sexual orientation, or the presence of any sensory, mental, or physical handicap. Such practices include upgrading, demotion, recruiting, transfer, layoff, termination, pay rate, and advertisement for employment. (Executive Order 11246 as amended and Minnesota Statutes Chapter 363). 2. All firms and organizations described above shall be required to submit to the Agency certificates of compliance demonstrating that they have, in fact, complied with the foregoing provisions; provided, that certificates of compliance shall not be required from firms and organizations on contracts and /or yearly sales of less than $10,000. 3. To the greatest extent feasible, the Contractor shall purchase supplies and services for activities under this Agreement from vendors and contractors whose businesses are located in the area served by block grant funded activities or owned in substantial part by project area residents. (Section 3, Housing and Community Development Act of 1968, as amended.) F. Notice 1. The Contractor shall include the provisions of the appropriate subsections A, B, C, D, and E of this section in every contract or purchase order for goods and services under this Agreement and shall send to each labor union or representative of workers with which it has a collective bargaining Agreement or other contract or understanding a notice advising the said labor union or worker's representative of the commitments made in these subsections. 2. In advertising for employees, goods, or services for activities under this Agreement, the Contractor shall utilize minority publications in addition to publications of general circulation. 98CEEContract N 8. EARLY TERMINATION This Agreement may be terminated by the Authority at any time, with or without cause, upon 30 days written notice, delivered by mail or in person, to the Contractor. This Agreement may be terminated by the Authority immediately upon the receipt by the Authority of notice of the loss of federal funding for the HOME Program . For purposes of giving notices hereunder, the address of the Contractor is The Butler Square Building, 100 North 6th Street, Suite 412 -A, Minneapolis, Minnesota 55403 -1520. Upon termination, the Contractor shall be entitled to receive as compensation, payment for work actually performed to the date of termination as determined by the schedule of payment referred to in Section 10 (Compensation). 9. DEFAULT AND REMEDY A. Any of the following constitutes a default on the part of the Contractor: (1) Failure to proceed with the implementation of the Program at a pace reasonably calculated to implement such program within the time limits stated herein; (2) Failure to conscientiously abide by the directions of the Authority. (3) Failure to abide by any other term or condition of this Agreement. B. In the event of default, the Authority shall have the option of terminating this Agreement upon written notice of termination sent to the Contractor at its address written above. Termination shall be effective immediately upon receipt of notice of termination by the Contractor, or at such later date as the written notice shall state. Upon termination, the Authority may recover from the Contractor any and all damages directly or consequently arising out of the breach of this Agreement or failure to perform the same by the Contractor. 10. COMPENSATION A. Administrative Services As compensation for the services to be performed hereunder by the Contractor, the Contractor shall be paid a fixed fee of $875.00 per grant 98CEEContract 10 made. The Contractor shall invoice the Authority for services rendered after the grant has been approved and a Proceed to Work Order has been issued by the Authority. The Contractor may submit one invoice per month, which shall cover the grants made during that month. The Authority shall provide the Contractor with the appropriate forms and documents to submit for reimbursement. B. Rehabilitation Assistance The Contractor shall submit a separate invoice for each grant made. The invoice shall state, at a minimum, the name of the Program Recipients, their address, and the full amount of grant. Within 15 days of receipt of the invoice, the Authority shall remit to the Contractor a check for the amount of the grant. Said funds shall be deposited into an interest - bearing checking account, held in trust for the Authority. The Contractor shall issue payment to the remodeling contractors as work is completed. Before issuing payment to a remodeling contractor, the Contractor must do the following: (1) Inspect the work to ensure that it has been completed satisfactorily. (2) Obtain a signed lien waiver from the contractor, subcontractor and /or material suppliers for the amount of the work. (3) Obtain the signatures of the homeowner and the remodeling contractor. (4) Verify with the Authority that a permit has been obtained for the work performed and that the remodeling contractor is properly licensed. 11. INDEPENDENT CONTRACTOR The relationship of the Contractor to the Authority is that of an independent contractor. Nothing in this Agreement shall be construed so as to deem any employee or agent of the Contractor an employee of the Authority for any purpose. 98CEEContract 11 12. GOODS AND SERVICES NOT PROVIDED FOR No claim for goods or services furnished by the Contractor not provided for by the terms of this Agreement, or by duly authorized alterations or modifications of this Agreement, will be honored by the Authority. 13. CHANGES IN THIS AGREEMENT The Authority shall notify the Contractor in writing at least five days before any change in this Agreement is to take effect. 14. ASSIGNMENTS AND SUBCONTRACTING A. The Contractor shall not assign any portion of this Agreement without the written consent of the Authority, and it is further agreed that said consent must be sought by the Contractor not less than thirty (30) days prior to the date of any proposed assignment. B. Any work or services assigned or subcontracted hereunder shall be subject to each provision of this Agreement and proper bidding procedures contained therein. The Contractor agrees that it is as fully responsible to the Authority for the acts and omissions of its subcontractors and of their employees and agents, as it is for the acts and omissions of its own employees and agents. 15. INDEMNIFICATION The Contractor agrees to indemnify, defend, and hold harmless the Authority (including its board members, officers, and employees) from all claims, losses, or damages which they, or any of them shall be legally obligated to pay as a consequence of any negligent act or omission, any intentional tort, or any violation of the terms of this Agreement, by the Contractor (including its officers, employees, and agents) in the performance of its services that are the subject of this Agreement. 16. REVERSION OF ASSETS Upon the expiration or termination of this Agreement, the Contractor shall transfer to the Authority any HOME funds on hand or in the accounts receivable attributable to the 98CEEContract 12 use of HOME funds. In addition, at the expiration or termination of this Agreement, any real property under the Contractor's control that was acquired or improved in whole or in part with HOME funds in excess of $25,000.00 shall be disposed of in a manner which results in the agency being reimbursed in the amount of the current fair market value of the property less any portion thereof attributable to the expenditures of non -HOME funds for acquisition of, or improvement to, the real property. Such reimbursement shall not be required if the conditions of 24 CFR State Statute 570.503(b)(8)(i) are met and satisfied. 17. DISPOSITION OF PROGRAM INCOME Upon the expiration or termination of this Agreement, program income shall be returned by the Contractor to the Authority. 18. INSURANCE The Contractor shall comply with the following insurance requirements: A. Public Liability Insurance The Contractor shall obtain and maintain continuously during the term of this Agreement general liability insurance of an amount not less than One Million and no /100 ($1,000,000.00) Dollars which covers bodily injury and property damage and an umbrella excess liability policy of Three Million and no /100 ($3,000,000.00) Dollars and provide proof of Worker's Compensation Insurance pursuant to the Statutes of the State of Minnesota. The general liability insurance policy and umbrella excess liability policy shall name the Authority as an additional insured. B. Proof of Insurance The Contractor shall provide certificates of insurance required under this section, or, upon request of the Authority, duplicates of the policies as evidence of the insurance protection afforded. Such insurance policies shall not be reduced or canceled without sixty (60) days prior written notice to the Authority. 19. ENTIRE AGREEMENT /REQUIREMENT OF A WRITING It is understood and agreed that the entire Agreement of the parties is contained 98CEEContract 13 herein and that this Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous Contract presently in effect between the Authority and the Contractor relating to the subject matter hereof. Any alterations, variations, modifications, or waivers of the provisions of this Agreement shall be valid only when they have been reduced to writing and duly signed by the parties. 20. EXHIBITS The following attachments listed below are hereby incorporated in this Agreement and made a part hereof: Exhibit A - Program Budget Exhibit B - Certification Exhibit C - 24 CFR 85; Contracting with small and minority firms, women's business enterprise, and labor surplus area firms. IN WITNESS WHEREOF, the parties hereunder set their hands as of the date written below: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY By Its Date By Its Date 98CEEContract 14 CENTER FOR ENERGY AND ENVIRONMENT, INC. By Its Date By Its Date I ,t Source 1998 HOME Allocation HRA Match Uses Home Improvement Grants Program Administration 98CEEContract EXHIBIT A 15 Amount $65,000 $16,250 $81,250 $76,150 $5,1000 $81,250 MEMORANDUM HOUSING REDEVELOPMENT AUTHORITY DATE: November 24, 1998 TO: William Bums, Executive Director of HRA AV FROM: Barbara Dacy, Community Development Director SUBJECT: Authorize Chairperson to Execute Final Plat Mylars for Fridley Executive Center Background On March 3, 1998, the City Council approved a preliminary plat for the Fridley Executive Center based on the application by MEPC American Properties for a one story building and 25,000 square feet of office space. As a result of Medtronic's interest in the site, the final plat has been revised to simply describe the property in two outlots (one outlot for the Torrens described portion and one outlet for the abstract described portion). Final Plat Because the site is described by both metes and bounds descriptions (which are very lengthy), as well as plat descriptions, it was decided to amend the plat to create simple outlots to eliminate confusing descriptions. In addition, recording the plat would simplify the description of the area adjacent to TH 65 which was turned back from MnDOT to the City several years ago. Approximately half of the area (about 30,000 square feet is incorporated into the lot for development), and the other half will be dedicated as part of the TH 65 right -of -way. At the November 9, 1998, City Council meeting, staff recommended that the City Council approve the final plat describing the site in two outlots. The City Council approved the resolution authorizing the Mayor and the City Manager to sign the plat. Because the HRA is the property owner, the HRA should also authorize the Chairperson to sign the plat. 3 Final Plat Mylars for Fridley Executive Center November 24, 1998 Page 2 Once the Chairperson signs the plat, staff will have the surveyor record the plat at Anoka County. Filing the plat as proposed will save a significant amount of time for the HRA, the title company, and Medtronic when they file their plat next spring. Recommendation Staff recommends that the HRA approve a motion authorizing the Chairperson to sign the final plat mylars and to direct staff to record the plat at Anoka County. 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I O_ 6 O -.I F') CJ r F- F_ S� C s j u� CJ 1. � J C� —3#V/7 HJJ V N-� e� i Cz F- ,� a + [] O n] CI I s ` .es oo a o • . e- Z i LQ -J C] C -; �- ca ` y J'-u•amror•au�`��� — 1;•�iv 3� "vim, ".v ivyi 7�} A �fl L6t! � {°iga W'LiD6 114.Cf.08 p S y ° 00'OOZ n N s� SS i't„•• M, LSZb.OS pn'ai ' r_� •ns� i �u'U'll: H ,I'll n �,..,S oi•/ I t / 'rT– a �� -!•�j gg 9� 3a M. Ib, ?I,ZN It-. iJ i L W W W W W uj O Tee $g � C4 ww i o� o� u �oI re) 3 a \ r ro �yp S� C s j rA C —3#V/7 HJJ V N-� e� i a + [] O C7 _7 .es oo a o • . e- Z i Q gg 9� 3a M. Ib, ?I,ZN It-. iJ i L W W W W W uj O Tee $g � C4 ww i o� o� u �oI re) 3 a \ 71/-7 C7 I` yE �s I PAS 5r � a 98'84I =0 / 86'£b I =l 4 s zs•LSoI =a U- r . _ M „81,£0 IBN °83 B£'88 9£ 96 l sl•slLll =a j• M 91,Zl, S „I S,9Z 0 =0 85'91 I 0 bs'91 I' 1 zs•LSV1 =a I .z£,sZ 9 =v I I g �^ n11a I G � J U a tl U I s o a co Will 8 � O r ro �yp S� C s j rA C —3#V/7 HJJ V N-� e� i [] O C7 _7 .es oo a o • . e- Z i Q 71/-7 C7 I` yE �s I PAS 5r � a 98'84I =0 / 86'£b I =l 4 s zs•LSoI =a U- r . _ M „81,£0 IBN °83 B£'88 9£ 96 l sl•slLll =a j• M 91,Zl, S „I S,9Z 0 =0 85'91 I 0 bs'91 I' 1 zs•LSV1 =a I .z£,sZ 9 =v I I g �^ n11a I G � J U a tl U I s o a co Will 8 � O ro �yp S� C s j 7, Ti .es oo a o • . Z i 71/-7 C7 I` yE �s I PAS 5r � a 98'84I =0 / 86'£b I =l 4 s zs•LSoI =a U- r . _ M „81,£0 IBN °83 B£'88 9£ 96 l sl•slLll =a j• M 91,Zl, S „I S,9Z 0 =0 85'91 I 0 bs'91 I' 1 zs•LSV1 =a I .z£,sZ 9 =v I I g �^ n11a I G � J U a tl U I s o a co Will 8 � O MEMORANDUM HOUSING REDEVELOPMENT AUTHORITY DATE: November 24, 1998 TO: William Bums, Executive Director of HRA 0� FROM: Barbara Dacy, Community Development Director SUBJECT: Authorize Proposals with Larkin, Hoffman, Daly, Lindgren, Ltd, & Benshoof & Associates In order to provide the HRA with the appropriate assistance in reviewing the Medtronic AUAR and ISP applications, staff is suggesting that the HRA retain Linda Fisher from Larkin, Hoffman, Daly, Lindgren, and Jim Benshoof from Benshoof & Associates. Larkin. Hoffman. Daly. Lindgren Proposal Linda Fisher represented the HRA in 1996 when the HRA successfully obtained an indirect source permit for the site. In addition, under state environmental rules, the City of Fridley is the responsible government unit in reviewing the Alternative Urban Area - Wide Review process (AUAR). Both the ISP and the AUAR will be occurring simultaneously in the next 3-4 months. Ms. Fisher has been assisting staff since July 1998 when Medtronic indicated its interest in developing the site. Ms. Fisher has estimated that her services would result in approximately $10,000- 20,000 of legal fees plus costs. (This is in addition to the $6,522 which has been expended to date.) Staff suggests that the HRA approve the proposal up to no more than $20,000 including all costs for Ms. Fisher. Ms. Fisher is the only attorney from the firm who would be working on this project. At this point in time, staff anticipates that her costs would be well below this maximum if there are no objections by other agencies to the AUAR and ISP. If staff believes that her services will cost in excess of $20,000, staff will bring the item back to the HRA for additional authorization. H Larkin, Hoffman, Daly, Lindgren, Ltd., and Benshoof & Associates Proposals November 24, 1998 Page 2 Ms. Fisher would be responsible for reviewing the draft AUAR and ISP documents prepared by Medtronic's consultants and attending meetings with reviewing agencies. She would also be responsible for suggesting revisions and negotiating resolutions to any conflicts which may arise during the process. Ms. Fisher's experience with these issues is extremely beneficial to the HRA and the City. Her familiarity with the site and the project has helped already in some of the initial meetings with the Minnesota Pollution Control Agency. Further, her knowledge of the Environmental Quality Board rules and her experience with AUARs in other communities will provide valuable expertise. Benshoof & Associates The scope of Benshoof & Associates' work for the HRA would be to review the traffic, air quality, and noise components of the AUAR document and indirect source permit application. The total estimated cost for the work is $6,700 (approximately $700 has been expended to date since the Medtronic proposal). Benshoof would review the analysis completed by Medtronic's consultant, SRF Consulting Group, Inc. There are over $75,000 of unexpended funds in the 1998 HRA budget for professional services. The proposed costs will also be included in the 1999 budget which is now being prepared for HRA discussion in January. Recommendation Staff recommends that the HRA pass a motion authorizing staff to execute the appropriate documents /contracts with Linda Fisher of Larkin, Hoffman, Daly, Lindgren, for an amount not to exceed $20,000; and with Benshoof & Associates for an amount not to exceed $6,700. Any additional expenses will be reviewed by the HRA. BD:Is M -98-233 4 -A FROM JOHN A. "" PETER J. COME November 13,1998 11.13.1998 16:01 P. 2 LARKIN, HOFFMAN, DALY & LINDGREN, LTD. ATTORNEYS AT LAW Ms. Barbara Dacy Community Development Director City of Fridley 6431 University Avenue NE Fridley, Minnesota 55432 1600 NORWEST FINANCIAL CENTER 7600 XERXES AVENUE SOUTH BLOOMINGTON, MINNESOTA 66431.1104 TELEPHONE (512) 036 -9800 FAX (612) 0064333 Re: Lake Pointe Corporate Center AUAR and ISP Our File No. 21,733.00 Dear Barbara: oaf amp. OALY 0. �NfflMlll'OPAEN ALHW i• IAI4LIDAN AAB►N ORu ' ALlpADWRiOINNAi00NlM a � 9iTi1WE` "• ONLYAOMMIDINV^ You have asked us to assist the City of Fridley ("City ") in discharging its responsibilities as ROU in the Alternative Urban Areawide Review ( "AUAR ") process for the Lake Pointe Corporate Center project ( "Lake Pointe") proposed by Medtronic. You have also asked us to assist the City and the Fridley Housing and Redevelopment Authority ( "HRA') as first and second permittees, in an application to the Minnesota Pollution Control Agency ( "MPCA ") for a new indirect source permit for Lake Pointe. This letter confirms our representation and describes our proposed legal services. Medtronic has asked its consultant, SRF Consulting Group, Inc. ( "SRF ") to take the lead in preparing the AUAR environmental analysis document and mitigation plan. Before these documents are distributed to the public and to the reviewing government agencies as required by law, they must be reviewed and certified as to accuracy and completeness by the ROU. Ultimately, the City Council must adopt the final revised environmental analysis document and mitigation plan before any phase of Lake Pointe Corporate Center may be granted final approval and before site preparation work or construction may occur. This will necessarily involve close coordination with Medtronic and SRF and other project consultants, as well as a meticulous and thorough review of draft AUAR documents submitted to the City by the Medtronic AUAR team. i FROM Ms. Barbara Dacy November 13,1998 Page 2 11.13. 1998 16:02 P., 3 LARKIN, HOFFMAN, DALY & LINDGREN, LTD. As we have previously discussed, we also recommend that the City "quarterback" any future project. related contacts with government agencies, including but not limited to, the Metropolitan Council, the Minnesota Department of Transportation, the Minnesota Pollution Control Agency, the Minnesota Department of Natural Resources, the Minnesota Board of Water and Soil Resources, the Six Cities WMO, and Anoka County. To assist you in this process, we propose to attend meetings with the City and the Medtronic AUAR team to agree on a strategy for AUAR preparation and processing; provide advice to the City, as needed to address issues that may arise during the AUAR process; as may be directed by the City, attend meetings with the Metropolitan Council and other government agencies as may be necessary to address project - related issues; review the Medtronic team's draft environmental analysis document and mitigation plan and provide comments to the City concerning suggested modifications; review written comments submitted to the City as ROU on the draft environmental analysis document and assist the City, as may be necessary, to revise the environmenial analysis document based on comments received during the comment period; review the revised environmental analysis document and mitigation plan prepared by the Medtronic AUAR team and suggest modifications; assist the City in negotiating a resolution to any objections that may be filed by state agencies and the Metropolitan Council to the revised environmental analysis document; as directed by the City, attend neighborhood meetings, Planning Commission or City Council meetings concerning the AUAR process. As you know, the MPCA has confirmed the need for the City and the HRA to obtain a new indirect source Permit ("ISP") for Lake Pointe Corporate Center. MPCA has further agreed that review of the ISP application may occur concurrent with MPCA review of the AUAR. This will allow for issuance of the final ISP shortly after adoption of the AUAR environmental analysis document and mitigation plan by the City Council. Medtronic has asked its lead consultant, SRr Consulting Group, Inc. to prepare the technical analyses that make up the bulk of the ISP application. However, the City and the HRA will be the first and second permitices on the document and, as such, the City must certify the application for accuracy and completeness. Therefore, it is essential that the City be closely involved in all stages of ISP preparation. Much of this coordination will take place during the AUAR process, but there will necessarily be some additional work with MPCA air quality staff to obtain a permit with conditions acceptable to all affected parties. To assist the City in the ISP process, we propose to perform the following legal services: attend meetings with the City and Medtronic to reach agreement on an ISP preparation strategy; attend meetings with MPCA staff as necessary to prepare and process the ISP; review the draft ISP application document prepared by the Medtronic project team and provide advice to the City ooncerning suggested modifications; as directed by the City, monitor MPCA review of the submitted ISP application, including possible comments submitted by the public if the public comment threshold is triggered by the application; as directed by the City, review draft ISP documents prepared by MPCA and provide advice to 4 -C FROM Ms. Barbara Dacy November 13,1998 Page 3 11.13.1998 16:02 P. 4 LARKIN, HOFFMAN, DALY & LINDGREN, LTD. the City concerning issues to discuss with the agency and Medtronic; review the proposed final ISP and, as directed by the City, negotiate acceptable permit conditions and language. At the onset of a project such as Lake Pointe, which involves multiple parties and an expedited schedule, it is very difficult to estimate with ghy degree of precision the cost of the type of legal services described in the preceding paragraphs. This is because there is considerable uncertainty as to the complexity of the issues we will be asked to address, and the number of meetings we will be asked to attend. As we have also discussed, the approach Medtronic's AUAR team has taken to date may have increased the likelihood that certain issues will be closely scrutinized by government agencies, therefore requiring a greater degree of involvement on our part to protect the City's considerable interest in the property and in the project. With this in mind, we propose to bill you for legal services on an hourly basis. You will receive monthly statements of our invoices during project work. At this time, we estimate that the AUAR and ISP legal services described above will result in approximately $10,000 to $20,000 of legal fees, plus costs. This is subject to change depending on how the AUAR and ISP processes unfold over the next several months. This is also in addition to the statecnlent for billings and disbursements that you have already received on this matter. We eagerly look forward to working with you and the City on the Lake Pointe Corporate Center project. If you have any questions concerning this letter or the project in general, please feel free to call me. Sincerely, Linda H. Fisher, for LARKIN, HOFFMAN, DALY & LINDGREN, Ltd. 0444293.01 4 -D ** *END * ** OCT -21 -1998 09:04 BENSHOOF & ASSOC. 612 832 9564 P. 02/W ' iFBENSHQOF & ASSOCIATES, INC. TRANSPORTATION ENGINEERS ANO PLANNERS 7301 OHMS LANE, SUITE Soo / EDINA. MN 55439 / (612) 832 -9659 /FAX (612) 832.9564 October 21, 1998 Ms. Barbara Dacy City of Fridley 6431 University Avenue N. E. Fridley, MN 55432 REFER TO FILE: 98 - 59 RE: Proposal for Assistance to Review AUAR and ISP Application for Medtronic Development on Lake Pointe Corporate Center Site Dear Barbara: In response to your request, this is present our proposal to assist in reviewing the AUAR and ISP application for the proposed Medtronic development. The purpose of this review is to ensure that the traffic, air quality, and noise portions of these documents are consistent with the prior analyses that we performed and are consistent with the City's current objectives. We anticipate that this work will include follow- through by our staff and by David Braslau. We will include costs for the Braslau firm in our invoices to the City, and the maximum cost presented in this'proposal includes costs for services provided by the Braslau firm. In accordance with your direction, we already have accomplished several items in conjunction with the work scope addressed in this letter. This work consists of participation at a meeting on October 1 with City and Medtronic representatives, preliminary review of SRF's traffic study report for Medtronic, and discussions with yourself. The total cost for this work to date is about $700. In order to effectively complete our review of the traffic, air quality, and noise components of the AUAR and ISP application, we will perform the following work tasks: 1. Confirm framework for traffic, air quality, and noise components. Based on our prior work, we will establish draft suggestions for the current analysis framework. We then will participate at a meeting with City stag SRF staff-, and any other appropriate Medtronic representatives in order to confirm the framework for the traffic, air quality, and noise analyses that will be documented in the AUAR and the ISP application. 2. Review traffic, air quality, and noise components of the AUAR and ISP application. We will review these documents regarding their consistency with 4 -E OCT -21 -1998 09:05 BENSHOOF 8 ASSOC. 612 832 9564 P.03iO3 Ms. Barbara Dacy 2 October 19, 1998 our prior work, with the current framework established in task 1, and with current City objectives. We will discuss our comments with Barbara Dacy. 3. Meet with project participants to discuss our comments from Task 2. We will meet with City staff, SRF staff; and any other appropriate Medtronic representatives to discuss our comments and to establish concurrence regarding any refinements that SRF would accomplish to the AUAR and ISP application. 4. Review any refinements to the AUAR and ISP application. We will review and updates that are provided regarding the AUAR and/or ISP application. We then will respond to the City as to whether the documents are fully satisfactory or whether some further adjustments are needed. We will complete our work in an expeditious manner and are committed to fully meeting your scheduling objectives. Labor costs will be billed on an hourly basis using the following rates: Principal - $105.00, Sr. Professional 11-- $65.00, Sr. Professional I - $60.00, Professional - $50.00, Technician - $50.00, and Secretary - $45.00. Direct expenses will be billed at cost. The maximum estimated cost to complete the four tasks previously described is .$6,000. Adding this cost to the $700 work in process, the overall maximum total cost for the services addressed in this letter is $61700. I want to emphasize that this work scope and cost represent a comprehensive review of the traffic, air quality, and noise components of the AUAR and ISP application. The cost of our services would be less if we performed a more limited review or if we did not address certain subjects. For example, about $3,100 of the total cost is for review of the air quality and noise components. The cost would be considerably reduced if these items were not addressed at all or were addressed only on a cursory basis. If any extra items are requested, the costs will be billed on an hourly basis. In any event, we will not proceed on any extra work unless you specifically direct us to do so. We will coordinate closely with yourself and will focus tightly on the specific issues in order to complete our work effectively and at minimal cost. Invoices will be submitted on a monthly basis for work performed in the prior month. Payment terms are 30 days. If these arrangements are acceptable, please sign below and return one copy to me. We appreciate this opportunity to work further with you in fulfilling the traffic, air quality, and noise requirements of the proposed Medtronic development. Sincerely, DENS' F &ASSOCIATES, INC. CITY OF FRIDLEY awes A. Benshoof Name Date 4 -F TOTAL P.03 s DATE: November 24, 1998 MEMORANDUM HOUSING C. LN I t REDEVELOPMENT AUTHORITY TO: William Bums, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Resolution Authorizing Pay Increase for HRA Employees Every year the HRA has passed a resolution authorizing a cost of living increase for HRA employees similar to the resolution approved by the City Council for City employees. Sara Hill, Human Resources Manager, has prepared the attached resolution for the HRA's action for 1999. The HRA employees affected by the resolution are the Housing Coordinator and the Remodeling Advisor. A 3% cost of living increase is proposed. Staff recommends that the HRA approve the resolution as presented. BD:ls M -98 -232 rJ AW ri CITY OF FRIDLEY ' MEMORANDUM Sara S. Hill Human Resources Manager (612) 572 -3507 Memo to: Barbara J. Dacy, Director of Community Development From: Sara S. Hill, Human Resources Manager Subject: Resolution Authorizing Pay Increase for HRA Employees Date: November 17, 1998 Since the HRA is a distinct entity it will be necessary for its board to authorize salary increases for employees. I have adapted the resolution we use for the Fridley City Council to apply to the needs of the HRA. In order to provide salary increases effective January 1, 1999 it will be necessary for the HRA to take action on this matter at its meeting of December 3, 1998. 1 recommend that you present this matter for action at the above mentioned meeting. If I can be of any further assistance let me know. SSH/jn 5 -A RESOLUTION NO. HRA -1998 A RESOLUTION AUTHORIZING AN INCREASE IN COMPENSATION FOR FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY EMPLOYEES FOR THE 1999 CALENDAR YEAR WHEREAS, it is the intention of the Fridley Housing and Redevelopment Authority (HRA) to provide fair and equitable compensation to Employees within budgetary constraints; and WHEREAS, the Fridley HRA intends to comply with the Minnesota Local Government Pay Equity Act; and WHEREAS, Staff of the City of Fridley have reviewed the HRA's financial position as well as economic indicators and compensation adjustments by comparable employers; and WHEREAS, an adjustment of employee salaries and benefits is warranted; NOW, THEREFORE, BE IT RESOLVED by the Fridley Housing and Redevelopment Authority that the following adjustments be authorized for employees of the Fridley HRA, with the exception of employees who are members of a bargaining unit, effective January 1, 1999: A general increase of 3.0 percent in employee salaries. 2. Mileage reimbursement at the rate of $0.325 per mile. 3. Other benefits as promulgated by the City Council for 1999. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY, OF THE CITY OF FRIDLEY THIS DAY OF 1998. � ' .e� LAWRENCE R. COM]M ERS - CHAIRMAN WILLIAM W. BURNS - EXECUTIVE DIRECTOR 5 -B DATE: November 24, 1998 MEMORANDUM HOUSING REDEVELOPMENT AUTHORITY TO: William Bums, Executive Director of HRA 4iry FROM: Barbara Dacy, Community Development Director SUBJECT: Resolution Authorizing Extension of Time for the Execution and Delivery of Development Contract, Noah's Ark of Minnesota Background On March 13, 1997, the Fridley HRA approved a resolution authorizing execution of the development contract to provide tax increment financing assistance to Noah's Ark, Inc., for construction of a 108 unit senior housing project. The approval was conditioned upon the approval of a bond issuance by the City Council. Since that time, the HRA has passed two additional resolutions authorizing an extension of the deadline to execute the contract. The most recent extension was that the contract be executed by July 1, 1998. Since that time, the developer put together the necessary paperwork to complete the bond approval process by the City Council. The City Council approved the bond issuance on June 8, 1998. Another delay in the project revolved around the composition of the partners who would provide the equity for the project. Staff has discussed the project with Gary Bidne of Noah's Ark, and he is now confident that all the players are now in place to make the project work. e es The attached resolution extends the deadline to execute the contract to July 1, 1999, and amends the development contract to amend the completion of construction by June 20, 2000. Recommendation Staff recommends that the HRA approve the resolution as presented. BD:ls M -98 -234 1� 11/23/98 MON 13:35 FAX 612 885 5969 BRASS MONROE -2 Ob2 KRASS MONROE, P.A. ATTORNEYS AT LAW ■ James R Casserly Email jamesc@,L— arsmonraacom Direct Dial (612) 885 -1296 MEMORANDUM To: City of Fridley Attn: Barbara Dacy, Community Development Director From James R Casserly Date: November 20,1998 Re: Contract for Private Redevelopment By and Between Housing and Redevelopment Authority in and For the City of Fridley, Minnesota and Noah's Ark of Minnesota, Inc. Our. File No. 9571 -1 The Redeveloper is again proceeding with the development of its 108 unit elderly housing project. A number of issues are apparently resolved, the project has been re-bid and the interest rates are advantageous. The Resolution authorizing the Authority to execute the Agreement has expired and the attached Resolution simply authorizes the Authority to execute the Agreement on or before July 1, 1999. Because it has taken more time than originally anticipated, Section 4.2 of the Redevelopment Contract needs to be amended to allow for the completion of construction by June 30, 2000. Attached is a blacklined page showing that change. Please let me know if you need any additional information. JRGIrb Enclosure G- MMATAWRIDLEW1TAMACY JRC ZDOC SUITE 1100 SOUTHPOINT OFFICE CENTER e 1650 WEST 82ND STREET - BLOOMINGTON, MINNESOTA 55431 -1447 TELEPHONE SIZW&5999 • FACSIMILE 612M.1 -5969 6 -A 11/23/98 MON 13:35 FAX 812 885 5989 BRASS MONROE ARTICLE IV Construction of Minimum Improvements Section 4.1 Construction of Minimum Improvements. The Redeveloper agrees that it will construct the Minimum Improvements on the Redevelopment Property in accordance with the Construction Plans approved by the City. Section 4.2 Completion of Construction. Subject to Unavoidable Delays, the Redeveloper shall achieve substantial completion of the construction of the Minimum Improvements by June 30, 2000. All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property shall be in conformity with the Construction Plans. The Redeveloper agrees for itself, its successors and assigns, and every successor in interest 'to the Redevelopment Property, or any part thereof, that the Redeveloper, and such successors and assigns, shall diligently prosecute to completion the development of the Redevelopment Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be completed within the period specified in this Section 4.2 of this Agreement. Section 4.3 Certificate of Completion. (a) Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating to the obligations of the Redeveloper to construct the Minimum Improvements (including the date for completion thereof), the Authority will - furnish the Redeveloper with an appropriate instrument so certifying. Such certification by the Authority shall be (and it shall be so provided in the certification itself) 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 date for the completion thereof. (b) If the Authority shall refuse or fail to provide any certification in accordance with the provisions of this Section 4.3 of this Agreement, the Authority shall, within ten (10) 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 the Agreement, 10 Q003 11/23/98 MON 13:35 FAX 812 885 5989 BRASS MONROE 200-4 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION AUTHORIZING AN EXTENSION OF TIME FOR THE EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY FRIDLEY AND NOAH'S ARK OF MINNESOTA, INC. 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. The Authority has authorized on March 13, 1997, and on February 19, 1998, the execution and delivery of a Contract For Private Redevelopment (the "Contract ") with Noah's Ark of Minnesota, Inc. (the "Redeveloper "). 1.02. The Authority's Resolution of February 19, 1998, required that certain conditions be met by July 1, 1998. 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 It sea. 2.02. The Authority hereby finds that the Contract promotes the objectives as outlined in its Redevelopment Program. 2.03 The Redeveloper requires an extension of time to July 1, 1999, to secure the financing for the project contemplated by the Contract. 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 if the following conditions are met by July 1, 1999: date; and Substantial conformance of a Contract to the Contract presented to the Authority as of this 6 -C 11/23/98 MON 13:36 FAX 612 885 5969 BRASS NONROE X1005 Page 2 -- Resolution No. 2. A final approval by the City of Fridley of a lousing revenue bond to finance the project described in the Contract. Adopted by the Board of Commissioners of the Authority this day of 199 ATTEST: Executive Director UAWPDATA\FIPRMLEY\oI%DOGIHFA RESOLUTION 3.DOC Chairman HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION AUTHORIZING AN EXTENSION OF TIME FOR THE EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY FRIDLEY AND NOAH'S ARK OF MINNESOTA, INC. 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. The Authority has authorized on March 13, 1997, and on February 19, 1998, the execution and delivery of a Contract For Private Redevelopment (the "Contract ") with Noah's Ark of Minnesota, Inc. (the "Redeveloper "). 1.02. The Authority's Resolution of February 19, 1998, required that certain conditions be met by July 1, 1998. 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 M. 2.02. The Authority hereby finds that the Contract promotes the objectives as outlined in its Redevelopment Program. 2.03 The Redeveloper requires an extension of time to July 1, 1999, to secure the financing for the project contemplated by the Contract. 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 if the following conditions are met by July 1, 1999: 1. Substantial conformance of a Contract to the Contract presented to the Authority as of this date; and Page 2 -- Resolution No. 2. A final approval by the City of Fridley of a housing revenue bond to finance the project described in the Contract. Adopted by the Board of Commissioners of the Authority this day of 199 Chairman ATTEST: Executive Director G: \WPDATA\F\FRIDLEY\01\DOC \HRA RESOLUTION 2.DOC TO: FRIDLEY H.R.A FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES OCTOBER 1998 Account Vs for HRA's Use ADMINISTRATIVE BILLING: Account #'s for CR City's Use Code ADMINISTRATIVE PERSONAL SERVICES 21,006.58 101 - 0000 - 341 -1200 H1 ADMINISTRATIVE OVERHEAD 292.58 101- 0000 - 336 -3000 HA COMPUTER OVERHEAD 212.42 101 - 0000 - 336 -3000 HA (For Micro & Mini computers) TOTAL ADMINISTRATIVE BILLING : 100 - 0000 - 430 - 4107 21.511.58 OPERATING EXPENSES: USPS - POSTAGE 262- 0000 - 430 -4332 110.81 236- 0000 - 336 -3000 HA USPS - POSTAGE 262 - 0000 -430 -4332 25.12 236 - 0000 - 336 -3000 HA SNYDER'S -FILM PROCESSING 100 - 0000 - 430 -4221 13.82 236 - 0000 - 336 -3000 HA USPS - POSTAGE 100- 0000 - 430 -4332 4.12 236 - 0000 - 336 -3000 HA US WEST - TELEPHONE 100 - 0000 - 430 -4332 23.75 236- 0000 - 336 -3000 HA USPS-POSTAGE 100 - 0000 - 430 -4332 22.36 236- 0000 - 336 -3000 HA CITY - INS ALLOC, Sept 100 - 0000 - 430 -4336 991.00 TOTAL OPERATING EXPENSES: 1,190.98 BENEFITS EXPENSES: CITY OF FRIDLEY - HEALTH INS 262 - 0000 - 219 -1001 415.24 236 - 0000 - 219 -1001 11 CITY OF FRIDLEY - DENTAL INS 262- 0000 - 219 -1100 45.06 236 - 0000 - 219 -1100 12 CITY OF FRIDLEY - LIFE INS 262 - 0000 - 219 -1200 3.50 236- 0000 - 219 -1200 13 TOTAL BENEFITS EXPENSES : 64 3.80 TOTAL EXPENDITURES File: \EXDATA\HRA \TIF\98BILLads Details - OCTOBER 1998 o , 1 ep LU Cie 1 Op�� am ; dS , z ; v H i a I W , OC , 1 I 1 � N M 1 1 N 1 P CD i S i O d 1 U C L W 1 1 I 1 w , , I 1 ei 1p I W O 1 c 1 Q. C 2 , W I 0 O� , LUa W 7 J � y N W W OC ►- ICr .� Q , 07 °z C Q � 1 Ol.- 1 ►— a oe N W O V V 1 N LU = OL W 0 V 1 J J dN Y m N N � ag a 21 i H S0 OC N V < m I V 1 ix C a0 , 1 Y 41 1 Z ++ 1 Q W i m a . W FH F 1 IL -C z W i a• ca UM M O W W W, , W I , 1 8 , I , aD 1 W 1 , 1 O a I O r CJ N i O - S .Mt O 1 1 - Wi.� -.WW , ►- i Ct 0 N ri WWQ i O s 1� ix O .m.p 2 6 WO dG.d 1 w i OC t7 dd Sso i I... i 7 -A ep �O Op�� 1 v N O -- A N M P N It P CD m S O d M C L 7 -A �O v _C L yJ C m d i C AU 1p c •L C p 0 C 7 u y N FI 9L ICr y V p 07 C oe O O V U J N N � v L a y C ix C ++ W W W a -C z z i ca UM c°i W O O pppp M O M O O v O O - S .Mt , O 1 - 1 M It 1 O N N ri „C N O s 1� ��Npp O .m.p M M v M O O O O O O O O O O O O O O O O O O N PP CD O O O O O O O O O 6 ? N N N CL O O im C5 O O 4j 4j N N N M< M M M CM Of N C N OC ^ CM C H F r 10 r me 2c 1 I ' a0 OpD� app0,, p00� N app0., p00, 0p0� 0p0, EpD. u g P 01 O. a>+ P d P w P O. P P < ti A ti L ti m ti N N N d N O a. N d N N 1� N ti N ti N 00 O 0 0 C3 ppLA 0000 =m 0 0 O O O O O O O O 7 -A °oi z Ld t o A I ¢ I I I WI A 1 a► u► ► x ► z QI xl I i I I I i 1 'zJ I a I U W I A O I A z N ► Q \ I :i .i 1 it I W m W I x F CL WI" }� 0• I .a.' t •J t U \ t W .+ I U I E ! �L OI d IL l 1 1 i I 1 I I i I 1 i 1 1 I 1 f 1 I zi i xI z 006- i cc :: w 1 a > I z AI > WI 0 W I a I AI zl W ¢ I U I \ L3 I ciao `.BIN I M O 1 .1 E0 1 LI S I ix W I W Q QCcJ I xA CL 0a 1 U W O H I it fl ie I a- CL W I 0o$•mom000 o16v8800" 0000o8°8NOCS S A a Of i�. iI.� .4 ~Va MCMPVmM MvM� MN NO .iI`M IC N .i it m C N M C4 ~ .i `0 .a !� O a MZ > N I �QO CL { }W� ¢ N AiL a 0X CL �7F in ZQWNitQJ} We OLL 7txiH }ZJ a EQW I ~UNN >•\aLQ .iLSN ZwHQ .fHqq ILI - WUic W Lit z ree0WH mAQ41 W W 42HC.)L �ZQA NHiII zJQOi- ZWzF -WzaW& SF- UW++F -ww W QWB,)xA z,W0001- tYtAANNzJ 4C li OA.a W��yy,,HNWWmwWHOWNW Q WNJW> JLJArWZW2t9HZ�33 WtAOIZ-lW lOUO XWJHJAW 1 azJ- HAWWMZW -WOX z Hit O)- WJrUX"w C-j cWWup�pF-- aOam }HN WLLL. H-lJRLLhEW "Si l�t�ag@xl bO�y� A = zUH }QlL¢xL� > }> > }UbC zgYx} SQIHiNOOQ. I�- tf010f'tc2u¢.W3NNi¢i.(HtJAN2Ad d 000010 0010 G10101010N1•NNNNNNN CDMMMMCDWMWWMWMMWMMM%MM mw �0 G �o 10 10 10 -0 -0 10 10 10 .0 10 10 10 10 10 10 10 •0 10 10 N N t'J N N C•J N N N " N N " N N N N N N 03 N N N N z it z • Lb E 0 Xz 0 H U > ¢ 7H f- 3JU O� F-- ZN W O -1 U) �.6>u C0.11l0 } Z •Z¢ZQ ZJNH�¢ .O Nit .W! } HQW HHH WQ W LL }W A U LL W ZUxU L6LLLAJW0W 0 > " LY OMJLWONQ OOW ¢F J MOW W O [t NH OCZUQH }HXUCtW z }S HNJN } } M HH W F-3 0 y11 t. W HQOWQOQ HHW�xOAOiL>00ZZ xWuxf W4o-QwuuxLLWUN F- L¢AzOA¢ IOiW -x0 •LLWQW •OM- FH- L0.1XQ�J.QO Z }} E¢ O> z } }¢ O N W .J H x WW O H N W W Z A x N 2 A N N WNJJ�OL2I- dCNJJLHZ WHO YQWA�iJ19 z UHHQUZ W JUAH H UIY yU�W Z •N QIzHH�tap ULLWLLi.YH9440WLOLI�iLLL.HJUJS Zfi'N JLZ 070)OlD, 0. 07m0�03IpN07Np.0)N0.040]Np.N0. aaPAQPaPTO.a -a.0- `aaP*10. 0•a 0• NNNNN�NNNNNNNNNNNNNNNNNN 11 \\\\\\\\\\\\\11 \\\\\\\\\ .a rl .a .a M .a .i M .i .a .a .i .a .a .4 .q .f .1 .i d .a .a .a .i .l .i .i .i .a .a M .a .a M .a .i .i .i M .4 .l .i It .a .I .a .a .• J* 6 O i- LW! z cc FW- A TO: FRIDLEY H.R.A FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES NOVEMBER 1998 ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES ADMINISTRATIVE OVERHEAD COMPUTER OVERHEAD (For Micro 8 Mini computers) TOTAL ADMINISTRATIVE BILLING OPERATING EXPENSES: USPS- POSTAGE NORTH MEMORIAL - WELLNESS USPS - POSTAGE US WEST - TELEPHONE CITY - INS ALLOC, Sept BENEFITS EXPENSES: Account #'s for HRA's Use Account #'s for CR City's Use Code 21, 006.58 101- 0000 - 341 -1200 H1 292.58 101 - 0000 - 336 -3000 HA 212.42 101- 0000 - 336 -3000 HA 100 - 0000 - 430 -4107 21,511.58 262- 0000 - 430 -4332 17.31 ' 236 - 0000 - 336 -3000 HA 100 - 0000 - 430 -4330 65.00 236- 0000 - 336 -3000 HA 100 - 0000 - 430 -4332 7.35 236 - 0000 - 336 -3000 HA 100 - 0000 - 430 -4332 23.73 236- 0000 - 336 -3000 HA 100 - 0000 - 430 -4336 991.00 236 - 0000 - 336 -3000 HA TOTAL OPERATING EXPENSES: CITY OF FRIDLEY - HEALTH INS 262- 0000 - 219 -1001 CITY OF FRIDLEY - DENTAL INS 262- 0000 - 219 -1100 CITY OF FRIDLEY - LIFE INS 262 - 0000 - 219 -1200 104 39 207.62 236 - 0000 - 219 -1001 11 22.53 236- 0000 - 219 -1100 12 3.50 236- 0000 - 219 -1200 13 TOTAL BENEFITS EXPENSES: 233.65 TOTAL EXPENDITURES - File: \EXDATA\HRA \TIF\988lLL.xis Details 7C NOVEMBER 1998 r r r r r r r 1 r r 1 r 1 W of r r r r LU d = Z 1 1 1 1 1 1 r r r r Wr 1 Im r r r r r r 1 1 2 1 Y01 ti O CyO� O C7 Mq N O P M r 1 ONi N O M 1n r` N 00 NA a0 r- 1 1 r d 1 N fi M r 1 r W 1 r r LU W r r p[ 1 1 r r r r r I r 1 I H 1 r r Li 1 W r r r � 1 O 1 1 1 ad 1 d r r r Z i C W 1 r co N •L rCi GGG o O °' r g' c O •` W J i i S C x O d C O 1 r O i+ O S M U M U d N 1 C r C oG /- r r 1 If1 d rc Y1 O O O p r r O O O O O O O J J J Z Z J U U J 1 r i O Y Y O 41 41 IOZ..~d. adze O O N W r U r a O O w r r 1 L L V S OC r r to r LU p i N K OC S N LL V V LL N d u O O N Y x r r r r W N r pc r O O O O O O O O O J 5 r W 1 O O O O O O I O O p U r m r r r °O 1 r r r r r In W "a ; rn rn o s o • r u i r 2 i N M I, .Np M . Np M r- N M O M N C .Np M m r d' r r r • • r r r r 1 r / O O O O O O O O O N P� L 1 N 1 V 1 t r O O O O O O O O O O Cl O O O O O O O J 1 t l0 u 1 r .- N N N N N P 1 P H O 1 r O rn in o .o .o •o M In r In S S N N N N P r Y r P GC O C ~, M O b\ Oe-JJ J 1 W U r C •O C� O r W W W r r W 1 �C 1 W � • • •• •• r r �? N N IT N .? N O It N .t N %* N It N %t N F- P" I � I I 1 r r •- P'• -7 1 w co � g� d 1 q( r N r 1 (J Y 1 p 1 \ \ \ \ \ \ \ \ \ O o m m r N r 1n In N In •� n In M N�•- .Z+ r KF-000 r Z� r a.-. r N \ N \ N \ N 4+ \l0 N \ N \ N \ N \ N \ •U �$$ of W C i u W w 1 C4 gm " O =Z ou G d W a O O O O O OOC7CC W a O O O O O d O O O O O 7D MEMORANDUM HOUSING REDEVELOPMENT AUTHORITY DATE: November 25, 1998 1 TO: William W. Bums, Executive Director of HRA /4 FROM: Barbara Dacy, Community Development Director Grant Femelius, Housing Coordinator SUBJECT: Update on Housing Program Evaluation Internship Project This is to update you on the progress of Ben Martig, CURA intern, who has been working on an evaluation of the HRA's housing program. I �_ M_ .. .� The primary objective of the study is to analyze the impact of the HRA's housing rehab programs and their effectiveness on improving the City's housing stock and neighborhoods. Among the issues to be explored: 1. Who is utilizing the program and what is the demographic profile of the typical recipient? 2. Should the eligibility requirements (e.g. income limits, type of improvements, loan amount, etc.) be adjusted to focus the HRA's resources on specific populations or neighborhoods? 3. What is the impact of the HRA's programs in such areas as housing values and resident's perceptions of their homes and neighborhoods. 4. How does Fridley compare to other communities trying to address similar housing issues? W..- Since he began in mid - September, Ben has accomplished the following activities: r•� Housing Program Evaluation Memo November 25, 1998 Page 2 1. Assembled a master database of all residential property owners who have received HRA rehab assistance since 1993. This information will also be used by the GIS staff to prepare maps and help with overlay analysis. 2. Met with the City Assessor's office to identify: a. The "before" and "after" valuations of the properties which have been improved through the program. b. What type of improvements typically add value (e.g. improve marketability) and those that do not (e.g. improve livability and safety). C. The number of residents who have utilized the "This Old House" special property tax deferment program. 3. Collected data from the Building Inspections staff on residential remodeling permits since 1993 to compare public and private investment levels. 4. Met with several suburban communities to determine what type of programs are available. 5. Identified and reviewed studies which have been done in Minneapolis and St. Paul on housing program effectiveness and methodology. Future Activities In December, we will conduct a survey of loan and grant recipients who have been assisted through the HRA's programs. In addition, we plan to conduct a focus group meeting with a random sample of this group in early January. We will also conduct a more in -depth survey and evaluation of our efforts in Hyde Park. No action is needed by the HRA at this time. The goal is complete the survey work, focus group studies, data analysis and prepare a written report in January 1999. The final product with recommendations would be brought to the HRA in February 1999. M -98 -231 DATE: November 24, 1998 MEMORANDUM HOUSING REDEVELOPMENT AUTHORITY TO: William Bums, Executive Director of HRAa' FROM: Barbara Dacy, Community Development Director SUBJECT: Medtronic Update A draft development contract was forwarded to Medtronic on October 28, 1998. Medtronic will return their comments to Jim Casserly and myself on December 1, 1998. A meeting to resolve the issues will likely be set during the week of December 7, 1 998. In the meantime, staff and Linda Fisher have attended meetings with the MPCA and the Metropolitan Council regarding the AUAR and ISP applications. The draft AUAR and ISP will be submitted to staff by mid - December for distribution to the required review agencies. The public comment period on the applications will occur during the month of January. Council action on the AUAR will occur some time in March, assuming there are no objections. In the meantime, Medtronic should be filing their land use applications by the end of the year. No action is needed by the HRA at this time, but the January and February agendas will likely have action items for HRA consideration. BD:ls M -98 -235 I1 11/19/98 THU 17:11 FAX 612 885 5969 KRASS MONROE, P.A. ATTORNEYS AT LAW ■ James R cassaiy EmaAjame=@bassm0nroe.e0m www- lwessmonmacom Dimd Mal (612) 685-9296 ME To: City of Fridley Attn: Barbara Dacy, Community Attn: William Burns, Assistant C From: James R Casserly, Esq. Date: November 19, 1998 Re: Update on Medtronic Development Our File No. 9571 -20 S MONROE Z002 RANDUM Director On Thursday afternoon, November 19, 98, Cindy Amdt, Legal Counsel for Medtronic, provided me with the following infomiatio I. She, Donn Hagman, Peter Ki c k and John Herman met for four hours Thursday morning to review t ic Development Agreement. Unfortunately, they did not complete their a Aew, but they will meet again prior to Thanksgiving to finish their worzon the Agreement. 2. John Herman has been asked b- their comments and incorporate comments will be blacklined. I Cindy suggested that the Cit Rod Krass and 1) then review technical and what comments 4. We should be receiving the 1998. 5. Assuming that we can revie, substantive issues by the end of Medtronic working group to take all of into our October 28, 1998, draft. Their representatives (presently Barbara Dacy, ments to determine what we can adopt as wire further discussion. commments no later than December 1, heir comments and determine what are first week of December, then we should be SURE 1100 SOUTHPOINT OFFICE CENTER • 1650 WEST 8 jh o STREET • BLOOMINGTON, MINNESOTA 55431 -1447 TELEPHONE 612/88x. 99 . FACSIMILE 612188 S69 9 -A 011/19/98 THU 17:11 FAX 612 885 5969 KRASS MONROE able to have a meeting with the seven of us the week of December 7. 1 attempted to commit Cindy to a specific date so that we could set it aside, but she thought it more prudent that we see their comments first so that we could determine how much time it would take for us to respond. 6. Cindy once again repeated that this is a priority item for Medtronic and that she is to take the time that is needed to get the job done. Needless to say, we are prepared to commit the necessary time. We will forward their comments Just as soon as we have received them. JRC1lrb cc: Krass Monroe, P.A. Attn: Rod Krass G.AMATAWRIDLEY12XCR1DACY BURNS 2 = • Page 2 Z 0o3 MEMORANDUM HOUSING REDEVELOPMENT AUTHORITY DATE: November 24, 1998 TO: William Bums, Executive Director of HRA�� FROM: Barbara Dacy, Community Development Director SUBJECT: Request for TIF Assistance by Onan & Murphy Warehouse Background Murphy Warehouse is proposing to construct a 400,000 square foot state -of -the -art supplier warehouse and distribution facility in the south central portion of the Onan campus. Onan and Murphy Warehouse have filed the required plat application for Planning Commission and Council review in December and January. The 26 acre portion of the Onan site affected by this development will require significant soil correction and public improvements. Onan currently leases space from Murphy Warehouse at its warehouse on Main Street. Onan's lease expires at the end of 1999. Onan intends to sell 26 acres to Murphy Warehouse for the warehouse construction and then lease up to 60% of the building. Locating the warehouse facility on the Onan site will provide Onan with a significant operational advantage since component part suppliers will be on site, and warehouse space will be relocated from the existing plant. A rail spur will also serve the Onan campus and will actually go through the building. Requesl The total cost is estimated at $13,586,015. Onan has retained Real Estate Recycling, Inc., to prepare and file grant applications to DTED and Metropolitan Council for pollution clean -up funds. About $956,000 was requested (the City Council agreed to act as the "sponsor" of the applications similar to what the HRA did for Dealers Manufacturing). Murphy Warehouse is requesting approximately $1,290,000 in tax increment financing for a variety of soil correction and public improvements (see attached description labeled `TIF Extraordinary Costs "). 10 Request for TIF Assistance by Onan & Murphy Warehouse November 24, 1998 Page 2 The amount of assistance requested is about 10% of the project cost. A preliminary TIF cash flow analysis is attached. By 2006, a present value of $1,041,000 of tax increment can be generated which equates to $1,526,000 of available tax increment. Although staff is still reviewing the proposed use of the TIF funds and the requested amount, a pay -as- you -go approach has been suggested to Onan and Murphy Warehouse. Another option may need to be explored due to hte nature of these costs and the outcome of the grant applications. Environmental Contamination History The Boise Cascade Corporation was placed under court order in 1980 to complete a remedial action plan to construct a slurry wall containment system at the southwest portion of the site, test and abandon a contaminated deep well, and conduct long term monitoring of ground water and treatment contingencies. The clean -up was required as a result of the pollution remaining from creosote treatment of telephone poles in the early part of this century. A vault system is now in place, and the poor soils from the creosote treatment area are now contained within the vault. A drain system was constructed in the area of the proposed warehouse construction to filter any ground water contamination from any remaining contaminated soils. Boise Cascade has completed its responsibilities under the 1980 court order, and the site has been de- listed from the National Priorities' List. Despite the work completed to date, there still remains significant geotechnical issues associated with the excavation and filling of the former areas which contained heavy soil contamination. These areas are the proposed site for the warehouse construction. The soils in the area of the french drain which was constructed on the site are inadequate for proper compaction and will have to be excavated and recompacted. Secondly, the developer is proposing to construct a wetland on site to handle the storm water run -off and treat any impacted ground water through natural plant life in the wetland area. Finally, because the vault is located between the proposed site and Central Avenue, utilities and public improvements need to serve the site from a significant distance and in. unusual locations. For example, the sewer service will have to be accessed by jacking underneath the railroad line to the south of the property. The water service will have to be extended an additional amount of distance from Central Avenue. The building elevation will have to be raised for proper grading and storm water management. 10 -A Request for TIF Assistance by Onan & Murphy Warehouse November 24, 1998 Page 3 The developer points out that the site has suffered because of a "stigma" of a Super Fund site. In order to achieve development on the property, the developer is suggesting that these issues will need to be resolved if additional development is to occur. The City Assessor's Office has placed a zero value on the land for this property; however, once corrected, the property taxes to be collected on an annual basis will approximate $552,850. Although staff is still reviewing the proposed financial package with the developer (project proformas, purchase agreement, and lending commitments still need to finalized), the proposed project offers several advantages to the HRA and the City. The first advantage to the HRA is that it is a significant project in Tax Increment Financing District No. 9 which is not producing increment at this time. Increment would be available to help reduce the cost of redevelopment of the salvage yards (possibly up to $1 million). The advantages to the City include 100 additional jobs as a result of the development, reduced truck traffic on City roads as a result of Onan's consolidation of facilities, and, more importantly, development of what was once an unusable piece of property into a tax producing parcel. Summary No action is needed by the HRA at this time. Staff will continue to negotiate with Onan and Murphy Warehouse. BD:Is M -98 -236 =-I 1 i 1 - N �Yt t• X. jY1W1`' `r J� �r Fy�a �j SSSSSS yr F'�'� i'� y�q� a� � +. Nrt� c�7t53' �,F_'r• z f 1! o a m x`�N a A T r� 4 1 i 1 - 1 � �Yt t• X. jY1W1`' `r J� �r Fy�a .ry� vSa - i fit 3 —A KP ` yr F'�'� i'� y�q� a� � +. Nrt� c�7t53' �,F_'r• z f 1! Ott 1 G7 Q alug! -m g r Iyi1LYn✓ ? •R.i ! 4S g r a, "k r*t+,i�� Y�"r��v �' '�ryqq�s A a� � rk 'e 4^,k4'• }Cy1,fG4. - '�r. CfP��bMi � - �Yt t• jY1W1`' `r J� �r Fy�a .ry� vSa - i Epns, r � a A T r� 4 E tFc4� a�L r � r•. 4 F � I G7 Q alug! -m g r Iyi1LYn✓ ? •R.i ! 4S g r a, "k r*t+,i�� Y�"r��v �' '�ryqq�s A a� � rk 'e 4^,k4'• }Cy1,fG4. - - jY1W1`' `r J� �r Fy�a .ry� vSa - i Epns, r � m r� 4 4 F - a >� W `YS4 Rt „JA...t Pi P iS'r igeY 4°p ,r SAD'. r.O -]:r - 1r:.•9UZ� �.+:•i 6 _ 11/19/1998 U 0 A O o. r 14 :53 612 - 337 -9060 REAL ESTATE RECYCLIN O e o o $ °o 0 0 0 � O a- vl lz Vi I'D O en �� e > G .G 3 U ¢ U a a o o .fl to a o b �i O y tiD • _, cr .0 a0. G on CL V a4 w Of rz a ca o a o � O C%1 �y C%1 c� h .m d, D y O O o o $ °o 0 0 0 � O W vl lz Vi I'D O en �� e G fie all 0 y 0 O :, vi C51 U y ca Q 10 -D W O An A 00 c a J m .y H 0 ao -�a m our- O N M N00 In a 6^9 5~A P s� C9vo 0 0 .o U x a PAGE 02 .o R b 0 O O O N V s 0 .�k O V s b a b CIO. 0 U .�Uj 11/19/1998 14:53 612 - 337 -9060 REAL ESTATE RECYCLIN Project Budget for Onan / Murphy Distribution Center Fridley, NN 1. Cleanup Budget A. Site Investigation & Remediation Development Pre - Construction Site Investigation $78,000 Groundwater Modeling $7,000 Work Plan $11,000 Remedial Action Plan $15,500 Total Site Invstgn, RAJ' Dvlpmut $111,500 A RAP Implementation: Cleanup Costs Soil impacts $249,575 (Excavation, Stockpiling, Sampling, Treatment, Backf:ll, Compaction) Groundwater $177,375 (Dewatering, Constructed Wetland, Well Abandonment) City Oversight $5,000 Documentation / Implementation Report $12,500 MPCA Oversight $30,000 Total Implementation: 5474,450 Contingency: $117,190 Total TBRA and DTED Cleanup Budget 5703,140 11. Development / Redevelopment Budget Soil Correction, Dewatering (DIED P Cost) $65,000 Soil Correction (French Drain) (DIED P Cost) $155,000 Infrastructure $915,000 Roadways $207,500 Contingency - Infrastructure 15% $168,375 Construction 406,164 SF Building $11,372,000 Total Development Budget $12,882,875 DTED Eligible Project Costs $956,140 TOTAL PROJECT BUDGET $13,586,015 . Proposed Cost Allocation from Public Sources DIED (75% P Costs) $717,105 City $84,377 Met Council $154,658 Total Grant Funding: $956,140 Tax Increment Financing: $1,290,875 Private Investment: $11,456,377 10 -E n - PAGE 03 % of Total Project Costs 5.3% 0.6% 1.1% 7.0 %• 95% 84.3% R -11/24/98 TUE 14:35 FAX 612 885 5969 BRASS MONROE R002 KRASS MONROE, P.A. ATTORNEYS AT LAW ■ James R Casserly EmaBjamesc@kmswnvnm .cam www.krammonroe.eom Deed D161 (612) 885 -1296 MEMORANDUM To: City of Fridley Attn: Barbara Dacy, Community Development Director Real Estate Recycling Attn: Paul M. Hyde, Chief Executive Officer From: James R Casserly, Esq. Greg D. Johnson, CPA Date. November 24,1998 Re: Assistance for the Onan/Murphy Project Our File No. 9571 -10 Attached you will find the following schedules labeled Assumptions, Cash Flow and Present Value Analysis, Sources and Uses and Tax Increment Revenue Note. On the Assumptions please note that we are showing the market value for the land of $1.25 per square foot and the market value for the building of $23.50 per square foot for a combined market value of $27.00 per square foot of building. We think these are reasonable assumptions. Please review and comment. The Cash Flow and Present Value Analysis shows the amount of increment that is potentially available throughout the remaining life of the tax increment district. When talc increment district number 9 was established, it was assumed there would be substantial amounts of increment to help with the redevelopment of various sites within the district particularly the recycling businesses (junk yards). We have drawn a line after 12/01/06 since that is the amount of increment we are proposing be made available for the project. This assumes that the project pro formas can demonstrate a need for this level of increment and it also assumes that the grants needed for pollution abatement will be provided. SURE 1100 SOUTHPOINT OFFICE CENTER • 1650 WEST 82ND STREET • BLOOMINGTON, MINNESOTA 55431.1447 TELEPHONE 6121885-5999 • FACSIPALE 612 &5969 1 n -F 11/24/98 TUE 14:35 FAX 612 885 5969 BRASS MONROE QQ63 The Sources and Uses need little explanation. Under Sources we are assuming that the land is actually worth $1.25 per square foot even though the land acquisition costs, as shown under the Uses, is only $1.00 per square foot Also note that the contingency amount in the Uses exceed $300,000.00. The Tax Increment Revenue Note is an amortization which uses the available tax increment (see columns G and H in the Cash Flow and Present Value Analysis) to amortize a note whose principal is $1,041,501.00. The cumulative payments of the revenue note equal the cumulative available tax increment The note would bear interest at 7.5% and would be for a term of approximately eight years with twelve semi - annual payments. We are hopeful that a revenue note or pay as you go approach will work. This approach has worked on most of our projects and because of the short duration of this note, that is only eight years, it should be very acceptable to the lending community. Please consider these schedules as preliminary. We still need to review the project pro formal, the purchase agreement between Onan and Murphy and lending commitments. We look forward to hearing from you. JRC/lrb Enclosures GAWPDATAPFRIDLEY1 OCOR1DACY HYDE .DOC 0 fte 2 10 -G 11/24/98 TUE 14:35 FAX 612 885 5969 KRASS MONROE R004 CITY OF FRIDLEY T.I.D. #9 - ONAN ASSUMPTIONS Original Market Value PIN# 12-41 -0002 1,132,560 sq. ft. @ 1.25 /sq. ft. = 1,415,700 Original Tax Capacity 3.50% 49,550 Estimated Market Value 10,960,554 Land 1,132,560 sq. ft. @ 1.25 /sq. ft. = 1,415,700 Building 406,164 sq. ft. @ 23.50 /sq. ft. = 9,544,854 Estimated Tax Capacity 3.50% 383,619 Estimated Taxes 406,164 sq. ft. @ 1.24 /sq. ft. = 505,019 Construction 1999 Valuation 2000 Taxes Payable 2001 Admin /Program Fees 25.00% Pay 1989 Tax Rate certified tax rate * 0.97756 Pay 1999 Tax Rate - estimate 1.31646 Inflation 2002/2003 2.00% P. V. Rate 12/01/98 7.50% 10 -H ,:)nan.WK4 PREPARED BY KRASS MONROE, P.A. 11/23/98 11/24/98 TUE 14:36 FAX 612 885 5969 BRASS MONROE j0d5 CITY OF FRIDLEY T.I.D. #9 - ONAN CASH FLOW AND PRESENT VALUE ANALYSIS <- - ANNUAL --> < - 0 __ SEMI - ANNUAL 0 0 (a) (b) (c) (d) (e) (f) (9) (h) 0 0 Original Estimated Captured Estimated Less: Available Cumulative . --- Present Value - - -> Tax Tax Tax Tax Admin Tax Avail. Tax Semi Annual Cumulative Date Capacity Capacity Capacity Increment Fees Increment Increment Balance Balance (see assumptions) (c) - (b) (d) x (e) x (e) - (f) Total of (g) P.V. of (g) Total of (1) 49,550 363,619 (prev. year) 0.97756 25.00% 0 0 7.50% 0 06/01/98 49,550 49,550 373,997 0 0 0 0 0 0 12/01198 49,550 49,550 382,468 0 0 0 0 0 0 06/01/99 49,550 49,550 382,468 0 0 0 0 0 0 12101/99 49,550 49,550 391,109 0 0 0 0 0 0 06/01/00 49,550 383,619 0 0 0 0 0 0 0 12/01/00 49,550 363,619 0 0 0 0 0 0 0 06/01/01 49,550 383,619 334,070 163,287 40,822 122,465 122,465 101,876 101,876 12/01/01 49,550 383,619 334,070 163,287 40,822 122,465 244,930 98,194 200,070 06101/02 49,550 391,292 334,070 163,287 40,822 122,465 367,395 94,644 294,714 12/01/02 49,550 391,292 334,070 163,287 40,822 122,465 489,860 91,224 385,938 06/01/03 49,550 399,118 341,742 167,037 41,759 125,278 615,138 89,946 475,883 12/01/03 49,550 399,118 341,742 167,037 41,759 125,278 740,415 86,695 562,578 06101/04 49,550 407,100 349,568 170,862 42,715 128,146 868,562 85,475 648,053 12/01/04 49,550 407,100 349,568 170,862 42,715 128,146 996,708 82,385 730,438 06/01/05 49,550 415,242 357,550 174,764 43,691 131,073 1,127,781 81,221 811,659 12/01/05 49,550 415,242 357,550 174,764 43,691 131,073 1,258,853 78,285 889,944 06/01/06 49,550 423,547 365,692 178,743 44,686 134,057 1,392,911 77;174 967,117 12101/08 49;550 423,547 365,692 178,743 44,686 134,057 1.526.988 74.384 1_041_sni 12/01/07 49,550 432,018 373,997 182,802 .-I --- 45,701 .vr,.v� 137,102 ,,vVT,VrV 1,801,172 rJ,JLY 70,674 1,119,OL.i 1,185,499 06/01/08 49,550 440,658 382,468 186,943 46,736 140,207 1,941,379 69,662 1,255,161 12101/08 49,550 440,658 382,468 186,943 46,736 140,207 2,081,586 67,144 1,322,305 06/01/09 49,550 449,471 391,109 191,166 47,792 143,375 2,224,960 66,179 1,388,484 12/01/09 49,550 449,471 391,109 191,166 47,792 143,375 2,368,335 63,787 1,452,272 06/01/10 49,550 458,461 399,922 195,474 48,868 146,605 2,514,940 62,867 1,515,139 12/01/10 49,550 458,461 399,922 195,474 48,868 146,605 2,661,546 60,595 1,575,733 06101/11 49,550 467,630 408,911 199,868 49,967 149,901 2,811,446 59,717 1,635,451 12/01/11 49,550 467,630 408,911 199,868 49,967 149,901 2,961,347 57,559 1,693,010 06/01/12 49,550 476,982 418,080 204,349 51,087 153,262 3,114,609 56,723 1,749,732 12/01/12 49,550 476,982 418,080 204,349 51,087 153,262 3,267,871 54,672 1,804,405 06/01/13 49,550 486,522 427,433 208,921 52,230 156,691 3,424,562 53,875 1,858,280 12/01/13 06/01/14 49,550 49,550 486,522 496,253 427,433 436,973 208,921 213,583 52,230 53,396 156,691 160,188 3,581,252 51,928 1,910,207 12/01/14 49,550 496,253 436,973 213,583 53,396 160,188 3,741,440 3,901,627 51,168 49,318 1,961,375 2,010,694 06/01/15 49,550 506,178 446,703 218,340 54,585 163,755 4,065,382 48,594 2,059,288 12/01/15 49,550 506,178 446,703 218,340 54,585 163,755 4,229,137 46,838 2,106,126 5,638,849 1,409,712 4,229137 4,229,137 2,106,126 2,106,126 10 -1 Onen.WK4 PREPARED BY KRASS MONROE, PA. 11/23/98 P ![ 11/24/98 _TUE 14:36 FAX 612 885 5969 BRASS MONROE CITY OF FRIDLEY T.I.D. 99 - ONAN SOURCES AND USES SOURCES Tax Increment Present Value DTED (75% of Cleanup & Soil Correction Costs) $956,140 City (Share of Cleanup & Soil Correction Costs) Met Council (Share of Cleanup & Soil Correction Costs) Land Payment 1,132,560 sq. ft. @ TOTAL SOURCES @ 75.00% _ 1.25 /sq. ft. _ USES Land Acquisition 1,132,560 sq. ft. @ 1.00 /sq. ft. Cleanup costs (DTED P Cost) Site Investigation & Remediation Development 111,500 RAP Implementation - Cleanup Costs 474,450 Contingency 20.00% 117,190 Soil Correction, Dewatering (DTED P Cost) Dewatering 65,000 French Drain 155,000 Contingency 15.00% 33,000 Infrastructure Roadway access 207,500 Grading 265,000 Stormwater Treatment / Constructed Wetland 475,000 Sanitary Sewer 30,000 Water 75,000 Debris on Site 30,000 Propane Tank Explosion Berm 40,000 Contingency 15.00% 168,375 Professional Fees TOTAL USES SURPLUS / (DEFICIT) 10 -J Onan.WK4 PREPARED BY KRASS MONROE, P.A. 8006 1,041,501 717,105 84,377 154,658 1,415,700 3,413,341 . 1,132,560 703,140 253,000 1,290,875 25,000 3,404,575 8,766 11/23/98 11/24/98 TUE 14:36 FAX 612 885 5969 KRASS MONROE Principal Amount Interest Rate Number of Payments Payment Amount Interest Start Date Term of Note CITY OF FRIDLEY T.I.D. #9 - ONAN TAX INCREMENT REVENUE NOTE 1,041,501 7.50% 12 semi - annual payments Available Tax Increment 12/01/98 8 years Capitalized Date Interest Payment Interest Principal Balance 12/01/98 1,041,501 06/01/99 39,056 0 0 1,080,558 12/01/99 40,521 0 0 1,121,079 06/01/00 42,040 0 0 1,163,119 12/01 /00 43,617 0 0 1,206,736 06/01/01 0 122,465 45,253 77,212 1,129,524 12/01/01 0 122,465 42,357 80,108 1,049,416 06/01/02 0 122,465 39,353 83,112 966,304 12/01/02 0 122,465 36,236 86,229 880,075 06/01/03 0 125,278 33,003 92,275 787,801 12/01/03 0 125,278 29,543 95,735 692,065 06/01/04 0 128,146 25,952 102,194 589,871 12/01/04 0 128,146 22,120 106,026 483,845 06/01105 0 131,073 18,144 112,928 370,917 12/01/05 0 131,073 13,909 117,163 253,754 06/01/06 0 134,057 9,516 124,542 129,212 12/01/06 0 134,057 4,845 129,212 (0) 1651235 1,526,968 320,232 _ 1,206,736 10 -K 'R607 Onan.WK4 PREPARED BY KRASS MONROE, P.A. 11/23/98 Fridley HRA Monthly Housing Program Summary December 3, 1998 1. Loan Origination Report Covers the loans and grants issued in 1998, through 11- 23 -98. This report shows activity both city -wide and in the Hyde Park neighborhood. 2. Loan Servicing Report Covers HRA funded loans only. Report summarizes all of the loans being serviced by the Community Reinvestment Fund (CRF) for the most recent reporting period, 10- 31 -98. 3. Delinquent Loan Report Report shows the number of loans that are considered delinquent. There are four categories (1 month, 1 -2 months, 2 -3 months, over 3 months). The report shows the total amount of delinquent payments. Report covers activity through 10- 31 -98. 4. Other Information None Monthly Housing Report Cover (12 -3-98 HRA) s, LOAN ORIGINATION REPORT Month Ending Nov -88 City VYlde Loans and Gra 1988 (NOV) LOAN ACMAT Y REPORT I.O.R. - NOV 1899 112488 IName (Address I I HOM I I Loses Unt Loma Unt Grande/ UM Total Unt1 Closed Property Program 1 Retneck 143-Horizon Circle S 23,978.98 1 $ - $ - S 23,978.98 1 127/98 Single-family 5% Loan 2 Flan 6558 Oakley SL $ 8,800.00 1 $ - $ - $ 8,800.00 1 3/17/98 Single- family 5% Loan 3 Mahoney 261 -87th Ave. NE $ - $ - $ 13,383.00 1 $ 13,383.00 1 319/98 Single -family CDBG Grant 4 Ecker 6380 Startle Blvd. $ - $ - $ 9,621.00 1 $ 9,621.00 1 1/16198 Single- family CDBG Grant 5 Marciniak 801 - 58th Ave. NE S - $ $ 15,040.00 1 $ 15,040.00 1 3/28/98 Single -family CDBG Grant 6 Harlander 136 - River Edge Way S 25,000.00 1 $ - $ _ $ 25,000.00 1 421/98 Single -family 5% Loan 7 Van Auken 1475 - 73rd Ave. NE S 6,000.00 1 $ - $ - $ 6,000.00 1 423198 Single -family 5% Loan 8 Marcmiak 617 - Hugo SL NE S 4,922.86 1 $ - $ - $ 4,922.86 1 5/5198 Single - family 5% Loan 9 Hinrichs 7355 Hayes SL NE S 3,900.00 1 $ - $ - S 3,900.00 1 5/5198 Single -family 5% Loan 10 DMkes 680 - Ironton SL NE $ 2,400.00 1 $ - $ - $ 2.400.00 1 51501 Single-family 5% Loan 11 Dougherty 7420 Concerto Curve $ 18,118.19 1 $ - $ - $ 16,118.19 1 5/12/98 Single - family 5% Loan 12 Bailey 1828 Gardena Ave. NE $ 9,900.00 1 $ $ - $ 9,900.00 1 5/19/98 Single-family 5% Loan 13 Nelson 7530 Tempo Tarr. S 13,355.25 1 $ - $ - $ 13,35525 1 5/19/98 Single -family 5% Loan 14 Zelenak 7526 - 4th St NE S 7,500.00 1 $ $ $ 7,500.00 1 5/19M Single -family 5% Loan 15 Kok 6517 McKinley SL NE S 23,077.00 1 $ - $ - $ 23,077.00 1 5119/98 Single -family 5% Loan 16 Miter 591 - Dover SL NE S 25,000.00 1 $ - $ - $ 25,000.69 1 528198 Single-family 5% Loan 17 Smith 4610 2 -12 SL NE S 12,400.00 1 $ - $ - S 12,400.00 1 62/98 Single-family 5% Loan 18 Gunta 117 -Alden Circe $ 25,000.00 1 $ - $ - $ 25,000.00 1 6098 Single - family 5% Loan 19 Cannon 6750 Monroe SL NE $ 23,287.73 1 $ - $ - _ $ 23,287.73 1 819198 Single-family 5% Loan 20 Borman 120 River Edge Way $ 23,923.94 1 $ - $ - $ 23,923.94 1 619198 Single -family 5% Loan 21 Maki 7341 Concerto Curve S 3,775.00 1 $ - $ - $ 3,775.00 1 6130/98 Single family 5% Loan 22 Harfl 1311 - Creek Park Ln. S 20,000.00 1 $ - $ - $ 20,000.00 1 6/30/98 Single family 5% Loan 23 Leslie 600 - Hugo SL $ 24,425.00 1 $ - $ - S 24,425.00 1 721/98 Single family 5% Loan 24 Peterson 6757 Washington SL S 10,000.00 1 $ - $ - $ 10,000.00 1 721MB Single family 5% Loan 25 Nelson 250 - Gist Ave. $ 22,940.12 1 $ - $ - $ 22,940.12 1 721/98 Single family 5% Loan 26 Klein 5974 - 4th SL S 23,270.00 1 $ - $ - $ 23,270.00 1 7/30/98 Single family 5% Loan 27 Jacob 6251 Rainbow Dr. $ 11,500.00 1 $ - $ - $ 11,500.00 1 814/98 Single family 5% Loan 28 Berg 5824 - Innsbruck CL N $ 2,385.00 1 $ - $ - $ 2,385.00 1 8/4/98 Single family 5% Loan 29 Anderson 6442 Van Buren SL $ 1,106.00 1 S - $ $ 1,106.00 1 8/4198 Single family 5% Loan 30 Simonson 800 Pandora Dr. S 22,260.00 1 $ - $ - $ 22,260.00 1 814/98 Single family 5% Loan 31 Johnson 6800 Monroe SL S - $ 5,897.00 1 $ - $ 5,897.00 1 8/4198 Single family MHFA Loan 32 Hamm 563 - Janesville SL $ 8,133.00 1 $ - $ - $ 6,133.00 1 8111/98 Single family 5% Loan 33 Bartlett 5085 Topper Ln. S 10,93729 1 $ - $ - S 10,937.29 1 8/11/98 Single family S% Loan 34 Hendrickson 6431 Baker SL S 13,085.00 1 $ - $ - $ 13,085.00 1 8/31198 Single family 5% Loan 35 Notsch 1020 Lynda Dr. S 15,940.00 1 $ - $ - $ 15,940.00 1 91V98 Single family 5% Loan 36 Stolle 6005 - 5th St $ 12,655.41 1 $ - $ - $ 12.655.41 1 9/1/98 Single family 5% Loan 37 Wtka 6723 - Overton Dr. S 11,339.87 1 $ $ - $ 11,339.87 1 9/15199 Single family 5% Loan 38 Martin 580 - Kimball SL $ 7,400.09 1 $ - S - $ 7,400.00 1 922/98 Single family 5% Loan 39 Prentice 6950 - Hickory Dr. S 6,660.00 1 $ - $ - $ 8,680.00 1 922198 Single family 5% Loan 40 Fitzgerald 6141 - Trinity Dr. NE $ 8,000.00 1 $ - $ - $ 6,000.00 1 929/98 Single family 5% Loan 41 Lundequam S 25,000.00 1 $ - $ - $ 25,000.00 1 10/8!98 Single family 5% Loan 42 White 1370 - 69th Ave. NE S 25,000.09 1 $ - $ - $ 25,000.00 1 10/6/98 Single family 5% Loan 43 Cline 6800 - Jefferson St NE $ 5,920.00 1 $ - $ - $ 5,920.00 1 10/8/98 Single family 5% Loan 44 Bostrom 190 - Island Park Dr. $ - - $10,000.00 12 $ - S 10,000.00 12 10MM Multi -family MHFA Loan 45 Mohammad 490 - Faimronnt SL S 5,972.00 1 $ - $ - $ 5,972.00 1 10/13198 Single family 5% Loan 46 Schreiner 1331 Hticrest Dr. S 25,000.00 1 $ - $ - $ 25,000.00 1 10115198 Single family 5% Loan 47 Larson 6727 Washington SL $ 25,000.00 1 $ - $ - $ 25,000.00 1 10/15/98 Single family 5% Loan 48 Jones 1021 Lynda Dr. NE S 24,773.85 1 $ - $ - $ 24,773.85 1 1020198 Single family 5% Loan 49 Swedberg 7500 Lakeside Rd. $ 10,000.00 1 S - $ - S 10,000.00 1 1027198 Single family 5% Loan Sub -Total $ 633.041.49 44 $15,897.00 13 $ 38,044.00 3 S 688,982.49 60 Units — — — 49 Loans Hyde Park Loans and Grants HRA MHFA CDBG /HOME Data Type of IName Address Loans I Loans Grants Total Closed PropertyP 1 Kroone 5933 Main St NE S 9,277.18 1 $ - $ - $ 9,277.18 1 623/98 Single family 5% Loan 2 Hughes 6060 - 3rd SL NE $ - $ - $ 5,415.08 1 $ 5,415.08 1 9115/90 Single family CDBG Grant 3 Russell 217 -19 57th Ave. NE $ 8,000.00 2 $ - $ - $ - 2 1115/98 Duplex Matching Deferred Sub-Total $ 17,277.18 3 $ _ $ 5,415.08 1 $ 14,89226 4 Units 3 Loans Total S 650,318.67 47 $15,897.00 13 $ 43.459.08 4 $ 698,259.67 61 Units 52 Loans 1988 (NOV) LOAN ACMAT Y REPORT I.O.R. - NOV 1899 112488 tA LOAN SERVICING REPORT Month Ending October 1998 Installment Loans Number of Loans in Portfolio 183 Principal Payments $ 47,239.02 Interest Payments $ 8,818.00 Late Fees $ - $ 56,057.02 Ending Principal Balance 1 $ 2,114,303.75 Deferred Loans Number of Loans in Portfolio 22 Principal Payments $ 36.79 Interest Payments $ 1.41 Late Fees $ - $ 38.20 Ending Principal Balance $ 112,151.10 Totals Total Loans in Portfolio 205 Principal Paid $ 47,275.81 Interest Paid $ 8,819.41 Late Fees Paid $ - $ 56,095.22 CRF Monthly Servicing Fee $ 933.00 NET FUNDS RECEIVED $ 55,162.22 TOTAL OUTSTANDING LOAN PRINCIPAL 1$2,22 6,454.85 1998 (NOV) LOAN ACTIVITY REPORT LSR - OCT 1998 11/24/98 Fridley Loan Program Loan Delinquencies 10/31/98 Number of Loans (183) * 22 7 3 3 Payments Due $ 2,773.30 $ 851.66 $ 305.77 $ 2,413.65 Notes: * - Reflects the number of installment loans. File: DELINQUENCY REPORT (10 -98) Worksheet: LOAN DELIQUENCIES Date: 11/24/98 M L 11/24/98 1 to 2 2 to 3 Over 3 Loan Data 1 Month Months Months Months Number of Loans (183) * 22 7 3 3 Payments Due $ 2,773.30 $ 851.66 $ 305.77 $ 2,413.65 Notes: * - Reflects the number of installment loans. File: DELINQUENCY REPORT (10 -98) Worksheet: LOAN DELIQUENCIES Date: 11/24/98 M L 11/24/98