Loading...
HRA 08/06/1998 - 29829� r � � CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING AUGUST 6, 1998 CALL TO ORDER: Vice-Chairperson Schnabel called the August 6, 1998, Housing and Redevelopment Authority meeting to order at 7:34 p.m. ROLL CALL: Members Present: Members Absent: Virginia Schnabel, John Meyer, Jim McFarland Larry Commers, Pat Gabel Others Present: Grant Femelius, Housing Coordinator Jim Casserly, Financial Consultant William Bums� City Manager Craig Ellestad, Accountant Mike and Jackie Egan Councilmember Robert Bamette APPROVAL OF JULY 2 1998 HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES: MOTION: by Mr. McFarland, seconded by Mr. Meyer, to approve the July 2, 1998, Housing and Redevelopment Authority minutes as pre$ented in writing. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA: 1. CONSIDER CHANGE TO HOUSE PLAN DESIGN FOR 530 HUGO STREET• Mr. Femelius asked that this item be removed from the Consent Agenda for further discussion. 2. GLAIMS AND EXPENSES: MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the Consent Agenda AS AMENDED. . • 1� : : � / • ' ��I ►Y yY. • : 11 ul 1� : . ••: • : � UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. Discussion of Item 1: Mr. Femelius explained that this item was previously discussed at the July HRA meeting. Since that time, Mr. and Mrs. Egan have found that the cost of the home will exceed the amount they wish to spend. Therefore, they are requesting consideration of a change to their initial plans. The revised plan is very similar to the original design, but is approximately 373 square feet smaller and has a finro-car attached garage rather than a three-car garage. Staff recommends HRA approval and this item was placed on the Consent Agenda. Mr. Femelius stated that it was just brought to his attention that Mr. and Mrs. Egan have been made aware of some potential water problems on the site and surrounding areas. No sub-surface investigation has been completed on the site; therefore, staff is recommending that the HRA authorize staff to work with Mr. and Mrs. Egan to investigate the possible water problem and expend up to $10.000 to correct any water problems on the site. Mrs. Egan explained that neighbors have informed them that there is water ponding on the site. One individual stated that there is a spring on the lot or close to it and they � would like to be aware of any potential problems before they close on the property. The closing for the property has been scheduled for Friday, August 7th. Mr. Bums explained that this problem was just brought to stafPs attention. Delaying action on this item could affect construction schedules and run into the end of the construction season. Therefore, it was his recommendation that staff request authorization for expenditure of funds to correct any water problems on the site so that construction could begin. Mr. Meyer stated he is concemed that if the HRA authorizes this, it may be setting a precedent that they would need to stand behind any site condition problems for HRA lots sold. Mr. Femelius stated he did not feel it would set a precedent. Staff would like to bring the project to a conclusion. Furthermore, if the site is in need of correction, it would essentially be worth considerably less than the amount that Mr. and Mrs. Egan are paying for it. Mr. Meyer stated he personally would like to know the nature of the problems and what corrective action is needed prior to. authorizing staff to proceed with corrective measures. He asked if Mr. and Mrs. Egan have included a sump pump in their plans. � • 1 ._ ' � • ',�I � ' � • ' � I 1 . " : ' ' � Mrs. Egan responded in the affirmative, but stated the problem may require more than just a sump pump and drain tile. One of the neighbors had indicated that their sump pump runs continuously in the spring. Ms. Schnabel asked if the $10,000 expenditure could be limited to a scope of work. Mr. Femelius responded that it could be limited to soil correction costs if the HRA desires. Mr. Casserly stated that the HRA would choose the least expensive and effective way to correct the problem. Mr. Femelius stated if there is indeed a soil problem which required corrective action, the process could easily take at least a month: however, if the problem is not significant, it is the Egan's hope that construction could begin as soon as possible. MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the Change in House Plans for 530 Hugo Stree# N.E. UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Mr. McFarland, seconded by Mr. Meyer, to authorize staff to work with Mr. and Mrs. Egan to do soil testing and corrective work to make the lot buildable at 530 �` Hugo Street N.E. at a cost of up to $10,000. UPON A VOICE VOTE, SCHNABEL AND MCFARLAND VOTING AYE, MEYER VOTING NAY, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED. ACTION ITEMS: 3. �ONSIDER HOUSE PLAN AND DEVELOPMENT CONTRACT FOR GUY AND CATHY JORDAN. 540 HUGO STREET N.E.: Mr. Femelius explained that Mr. and Mrs. Jordan have obtained prices for their proposed home and determined that the cost is beyond their budget; therefore, they would like to modify the plans and bring them back before the HRA for consideration. At this time, it would be appropriate to table this item. Ms. Schnabel asked that staff look at any potential water problems for this site as well and report back to the board. MOTION by Mr. Meyer, seconded by Mr. McFarland, to table this item. � UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. � HOUSING & REDEVELOPMENT AUTHORITY MEETIl�TG,. AUGUST 6. 1998 PAGE 4 4. RESOLUTIC�N AUTHORIZING EXECUTION OF A CONTRACT FOR PRIVATE REDEVELOPMENT WITH DUKE CONSTRUCTION LIMITED PARTNERSHIP. Mr. Casserly explained that staff received a draft of the contract last week and with all of the discussions that they have been having with Medtronic, they have not had the time to adequately sort out the issues of the contract. Therefore, he asked that discussion of this item be delayed until the September HRA meeting. Mr. Meyer stated he was surprised to see this proposal still "on the books" while the City is having discussions with Medtronic. He asked if the HRA really wants to pursue this at this time. Mr. Casserly explained that if for some reason Medtronic decides to withdraw from the project, this would allow the City to be in a better position to see a project go forward for the site. The agreement is clearly contingent upon the HRA not reaching an agreement with Medtronic. Tabling this for further discussion at the September HRA meeting would also give the City a better idea as to Medtronic's position in the development. MOTION by Mr. Meyer, seconded by Mr. McFarland, to table this item until the September HRA meeting. UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTIOfV CARRIED UIVANIMOUSLY. 5. CONSIDER CONTRACT TO PAINT DECORATIVE L.IGHTS: Mr. Bums explained that staff is recommending that the lights installed several years ago be repainted. The project would consist of repainting 81 fixtures to their original bronze color (which would then match the lights to be installed on 57th Avenue) at a cost not to exceed $7,290.00. MOTION by Mr. McFarland, seconded by Mr. Meyer, to authorize staff to contract for the painting of 81 light fixtures, in an amount not to exceed $7,290.00. UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTIOIV CARRIED UNANIMOUSLY. 6. RESOL.UTION ADOPTING 1998 TAX LEVY COLLECTIBLE IN 1999: Mr. Femelius explained that this is the third year that the HRA has had the opportunity ,�—� of having an HRA tax levy for the certification of taxes payable in 1999. The funds can be used for any general HRA operation including programs and services that they offer. �OUSING & REDEVELOPMENT AUTHORITY MEETING,. AUGUST 6�1998 PAGE 5 �--�, Over the past two years, the HRA has used this money to help support the housing rehab programs and to help repay the $1.5 million loan from the city. The state law allows the HRA to levy a tax against all taxable real property in the city. In order to levy a tax for 1999, the HRA must adopt a resolution and the City Council must adopt a similar resolution at their August 24, 1998 meeting. Ms. Schnabel asked if staff has ever received any comments from the public in regard to the City's use of the funds. Mr. Femelius stated he is not aware of any. Ms. Schnabel stated she feels the housing programs have been well received by the community, and it helps to improve the housing stock in the city. Mr. Meyer stated he is in approval of the tax levy. However, he continues to be dismayed at the type of homes that are receiving assistance under the programs. He stated he thinks the income limits for the programs are too high and the allowable expenditures too liberal. MOTION by Mr. McFarland, seconded by Mr. Meyer, to adopt Resolution No. HRA 14- 1998, A Resolution Adopting a 1998 Tax Levy Collectible in 1999. �` UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, VICE-CHAfRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. IIdFORMATION ITEMS: 7. GATEWAY EAST UPDATE: Mr. Femelius stated the acquisition of JR's Automotive property was completed on June 26. Over the course of the next few months, staff will be working with the environmental consultant to address any contamination issues. The building will need to be kept in place to qualify for tax increment purposes. Mr. Femelius stated staff has also done some research with legal counsel on the duplex property. At this time, it appears that if the City is to acquire the property, they should have a plan for replacing the housing units for affordable housing. One option may be to move the duplex to another site and preserve those units or to construct new units on another site. Mr. Femelius stated that of the iwo vacant properties� one went tax forfeit this spring. Approximately two weeks ago, the City was contacted by the individual who previously owned the property and he has expressed interest in constructing a four-unit townhome �"'� project on the site. Staff recommends waiting out until the expiration of the redemption period. � � � 1 : ' � •' I •' I M� • `•: ' • • Mr. Femelius noted that site plans have been prepared by Mark Koegler from Hoisington Koegler. Four scenarios are currently being evaluated, ranging in size from 14 units to 22 units. He noted that staff talked with the City Council on July 20 in regard to this project and that they appeared to be very supportive. Unless otherwise directed, staff intends to work aggressively on this project and generally is looking at a project taking place in mid 1999. 8. 621 LAFAYETTE STREET UPDATE: Mr. Femelius noted that at the July 2 meeting of the HRA, staff discussed the acquisition of 621 Lafayette Street, adjacent to a parcel that the HRA already owned at 611 Lafayette. At that time, staff suggested that the finro sites be combined to create one buildable site. Mr. Femelius stated the property at 621 Lafayette is in fairly good condition, and the HRA did express some reservations about acquiring the property due to its condition. The HRA's direction at that time was to see if any of the adjoining property owners would be interested in purchasing the lot from the City. At this point, it does not appear that there is any interest. Therefore, the HRA will continue to hold on to the property at this time, and perhaps in the future consider splitting it and conveying it to the adjoining properties. OTHER BUSINESS Mr. Casserly distributed information regarding the TIF assistance for soil correction work at the property located at 8234 Main Street N.E. (Cintas Uniform). He noted that this issue was discussed at the July HRA meeting and, at that time, staff was directed to obtain further information in regard to what was being proposed for the site, the costs involved and the valuations. Information was provided regarding the history of the company itself. The proposal for the property is to construct a 51,000 square foot building on a six acre site. The building would be designed so that an additional 14,000 square feet of expansion space would be available. They currently have 60 employees and anticipate that after the first full year of operation it will increase to 75 employees with 130 being anticipated after three years. The total project cost is approximately $4.9 million. The assistance being requested for soil correction is 5% of the project costs (approximately $250,000). The assistance would be provided in the form of a revenue note. Mr. Casserly stated staff is requesting approval of up to $250,000 for soil correction work. They believe this is a good use for the site. The applicant would like to begin construction as soon as possible. � Mr. Meyer asked if there are any procedures which staff follows to verify the cost of soil correction. ��li� � : ' � • � � � • 1� • � � i� e�;\i���i c�LS�:�T� � Mr. Casserly explained that it is often very difficult to get accurate bids on soil correction work. Estimates are obtained, however, and when the work is actually completed, an architect or engineer verifies that the amounts claimed are in fact spent for soil correction as authorized. Often the invoices are on file as well as lien waivers. He stated that the City will reimburse them for the expenses. It was the general consensus of the HRA to proceed with this project. Ms. Schnabel noted that the Monthly Housing Program Summary was included in the packet. Mr. Femelius stated that staff is preparing to discuss the delinquent loan issues at the September meeting _1 �1�r�1!l7�iCi'i_C1� �_� MOTION by Mr. McFarland, seconded by Mr. Meyer, to adjoum the HRA meeting at 8:55 p.m. � UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE AUGUST 6, 1998, HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 9:00 P.M. Respectfully submitted, ' � � C� Z� 'Tamara D. Saefke �� Recording Secretary /'�