Loading...
HRA 06/03/1999 - 00002695CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING JUNE 3, 1999 CALL TO ORDER: Chairperson Commers called the June 3, 1999, Housing and Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, Jim McFarland, John Meyer Members Absent: Pat Gabel Others Present: Barb Dacy, Community Development Director Julie Vogel, Accountant APPROVAL OF THE APRIL 28, 1999, HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES: MOTION by Ms. Schnabel, seconded by Mr. Meyers, to approve the April 28, 1999, Housing and Redevelopment Authority minutes as presented. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. APPROVAL OF THE MAY 20, 1999, HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES: Mr. Commers stated that page 9, paragraph 2, should read as follows: "Ms. Dacy stated the HRA's representation stated that the HRA is cooperating with the City stating the site is suitable for 1.6 million square feet of development." MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the May 20, 1999, Housing and Redevelopment Authority minutes as amended. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA: AMEND BY-LAWS TO ESTABLISH 1 ST THURSDAY AS REGULAR MEETING DATE 2. ANNUAL ELECTION OF OFFICERS HOUSING & REDEVELOPMENT AUTHORITY MINUTES. JUNE 3. 1999 PAGE 2 3. CLAIMS AND EXPENSES Mr. Commers stated approval of the check register and additional expenses presented by Ms. Vogel is with the understanding that the levy return to Independent School Districts #13 and #14 is only contained on the listing once. MOTION by Mr. Meyer, seconded by Ms. Gabel, to approve the Consent Agenda and additional expenses. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARING: 4. PUBLIC HEARING TO AUTHORIZE SALE OF LAND TO MEDTRONIC. INC. MOTION by Mr. Schnabel, seconded by Mr. McFarland, to open the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPEN AT 7:40 P.M. Ms. Dacy stated the public hearing is the last step in the process to redevelop 27.5 acres of the Lake Pointe site at the northwest corner of I-694 and Highway 65. State law requires a public hearing before conveying land. As was approved at the May HRA meeting, the HRA will be conveying the eastern portion of the site and a strip of land extending west to 7t" along the northerly portion of the site. Staff recommends the HRA approve the sale of the property in accordance with the development agreement. Mr. Commers asked what is going to happen to the homes along the northerly portion? Are they going to be moved or demolished? If so, when will this happen? Ms. Dacy stated the current plan is to try to find a site to move them. They would like to work with either Habitat for Humanity or the Project for Pride in Living group from Minneapolis to find alternate locations for the seven homes. This is a very nice undertaking because they would have to bring the homes up to current codes. The time frame for removal is between July 15 and September 1. Some of the owners have negotiated different dates. That schedule still needs to be firmed up in more detail. Mr. Commers asked what the status is of the HRA's vacant lots. Mr. Dacy stated only one lot remains in the inventory at this time. The other lots have been sold. No acquisitions have been completed in the last six months or so. The remaining lot is on the north side of Mississippi Street, and staff will be coming back in July with a proposal for that lot. Mr. Commers asked if they could work something out with Medtronic to use those homes in any of the existing programs as a replacement residence for the affordable living program. HOUSING & REDEVELOPMENT AUTHORITY MINUTES. JUNE 3. 1999 PAGE 3 Ms. Dacy stated there is nothing in the inventory. However, Medtronic is investigating a piece of land in Fridley to subdivide for these homes. She did not know if those negotiations had been firmed up or if they had decided to pursue that option. MOTION by Mr. McFarland, seconded by Ms. Schnabel, to close the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 7:43 P.M. MOTION by Mr. Meyer, seconded by Mr. McFarland, to authorize the sale of land to Medtronic, Inc., pursuant to the development agreement approved at the May 20, 1999, Housing and Redevelopment Authority meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: 5. TH 65 PROJECT UPDATE Ms. Dacy stated staff is asking the HRA to authorize a consultant contract. In order to have a successful application for Federal funding for improving Highway 65, the City needs the support of the Minnesota Department of Transportation (MnDOT). To this point in time, the MnDOT staff has been very supportive of the project to add an additional through-lane northbound and southbound from the intersection at the south part of Moore Lake to about 100 feet beyond the intersection at Moore Lake Drive. Staff has been recommending a sheet pile wall construction. MnDOT recommended a feasibility study of how the sheet pile wall would work. The HRA has completed soil borings. The initial results were favorable so they can go to the next step. Ms. Dacy stated that there are two sources of funds that would reimburse the HRA. They have received a$500,000 one-time appropriation from the state for design work for the project. The second source is tax increment. The legislature, when it approved the tax increment extension for the Lake Pointe site, authorized the use of tax increment for Highway 65 improvements and related expenses. Ms. Dacy stated staff has asked MnDOT for a letter of support. Since preparing the memo for the HRA, she talked to an engineer at SEH who suggested that the summary of the feasibility study would do. They would have to meet with the reviewing agencies to agree on what the typical road section would be and create a preliminary profile. Then they would complete additional soil borings along the causeway. Once that profile is in place, then they would know where the sheet pile walls would be going in on either side of the causeway. They would conduct additional soil borings and determine how to anchor the system of walls. They are thinking of tying the two walls together. They should also identify solutions if there is some type of settling of the soil that occurs between the walls and existing road bed. Finally, they would determine how the walls would be tied in at each end of the project. The preliminary estimates to accomplish HOUSING & REDEVELOPMENT AUTHORITY MINUTES. JUNE 3. 1999 PAGE 4 this portion of the work would cost at least $20,000 and more typically $30,000 to $35, 000. Ms. Dacy stated the second part of the feasibility study would determine the proposed drainage system requirements and determine a solution for stormwater treatment. In order to design the wall, they need to know a little bit about the drainage system. Ms. Dacy stated staff is asking the HRA to authorize the execution of a contract for no more than $60,000. The contract would be phased such that staff would pay the consultant to complete the feasibility study for the sheet pile wall first prior to getting to some of the final analysis. Mr. Commers asked who recommended the idea of a sheet pile wall rather than using a standard procedure. Ms. Dacy stated the idea came from a consulting engineer for Medtronic. When they started the environmental analysis and determined the need for the additional through- lane, several options were identified. One alternative was to use the existing shoulders that are there right now. MnDOT would not accept that because it would not meet safety standards. The second alternative was to do the sheet pile wall. The third would be to fill in the lake, which creates another set of issues. It was determined that the sheet pile wall would be the best approach given the width of causeway and what they are trying to accomplish. Staff reviewed those issues with MnDOT, the watershed groups, and the Department of Natural Resources (DNR), and they seemed to recommend it. Mr. Commers asked who would cover the costs. Ms. Dacy stated this would come from this wall can be constructed with minimal impa slope as much as possible. Federal funding application. The sheet pile ;t on the lake and take advantage of the Mr. Commers asked what the estimated cost would be using that approach. Ms. Dacy stated the sheet pile wall and additional lanes without any of the associated drainage and intersections improvements are estimated to cost $5 to $6 million. With design and inspection costs, that total would increase to $6.5 to $7.5 million. Mr. Commers stated they are then asking the Federal government to approve a total overall project of $7.5 million. Ms. Dacy stated that is correct. The application will be submitted in August. Staff expects to have a response at the end of the year or early next year. Funds would become available for construction in the year 2003. Mr. Commers asked what is proposed at the intersection of Hackmann and Highway 65. HOUSING & REDEVELOPMENT AUTHORITY MINUTES. JUNE 3. 1999 PAGE 5 Ms. Dacy stated that side of the intersection is being reconstructed. There will be no additional costs associated with Hackmann Drive. There will be some intersection modifications at East Moore Lake and West Moore Lake Drive. Mr. Commers asked if the plan approved for Highway 65 and Hackmann has any bearing with what is happening with the gas station and whether or not there is any additional traffic in that area. Ms. Dacy stated the plan the HRA approved is essentially the traffic plan approved in 1986. The traffic design did not change substantially from what the City had planned for that intersection. The only other alternative would have been to move the connection further up Central Avenue and create a direct connection from Polk Street. That would mean removing 5 or 6 homes. That was not an option. Mr. Commers asked what happens if they do not get the funding. Ms. Dacy stated there are two options. One option is to apply again. There may be additional Federal funds available in the future. The second option is to pay for improvements from the tax increment funds. They have preserved the ability to use tax increment funds from the extension. Part of the reason staff is moving so fast is that they know there are Federal funds available now. By the time the funds become available in 2003 to 2004, there will be 500,000 square feet of development at the Lake Pointe site. Medtronic could, by that time, be in Phase 2, which would mean an additional 150,000 to 300,000 square feet of development. This would be perfect timing to handle the additional growth. The highway can function until there is approximately 800,000 to 1 million square feet of development. The timing at the intersections will be slow at peak hours. Mr. Commers asked staff to put together a projection on how to pay for that improvement if, in fact, there is no Federal funding. Ms. Dacy stated this is a state highway. There is a lot of concern about why the City and/or the developer should foot the bill for a highway that is maintained by the state. The third option is to contact the Legislature to expand the amount of funds to be used for "maintenance projects". Mr. Commers stated they need to get the Federal application in and to get the consultants to do the study. It seems they have no options at this point. Mr. Meyer agreed. He also requested that there be a preliminary cost estimate required of the consultant for the sheet pile wall. Also, have the engineer project an alternate cost for a non-sheet pile wall. He personally felt the sheet pile wall would be cheaper by far. Ask the consultant to provide a base expression of cost plus an alternative would be appropriate. The big thing is that the initial soil borings have been made. MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve retaining a consultant at a cost not to exceed $60,000 to assist in meeting the application deadline for federal funding. HOUSING & REDEVELOPMENT AUTHORITY MINUTES. JUNE 3. 1999 PAGE 6 Mr. Meyer asked if SEH was the consultant they were hiring. Ms. Dacy stated Mr. Flora sent out proposals to SEH and to Braun Intertech. They have not heard from Braun Intertech yet. Mr. Meyer stated Braun Intertech is not a consulting engineering firm. They do not do the same work that SEH does. Braun Intertech does primarily testing. Ms. Dacy stated she believed it was because they had a prior project using the sheet pile wall. She will talk with Mr. Flora. Perhaps they should get another estimate. Mr. Commers asked who was Benshoof and Associates. Ms. Dacy stated Benshoof and Associates has been hired to make sure we are matching the right traffic issues with the right part of the Federal transportation application. There is a specific niche of the project that they are going to use to go to MnDOT and get a letter of support. Mr. Commers stated this is really to put together the study that we are taking to the state to get them to support the Federal application. Ms. Dacy stated this is correct. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. INFORMATION ITEMS: 6. GATEWAY EAST UPDATE Ms. Dacy stated that while she has not had a direct conversation with the Holiday staff, she thought it was to the HRA's benefit to cooperate, and they could acquire the property after the tenant has left at the end of October. 7. 57T" AVENUE REDEVELOPMENT Ms. Dacy stated the developer of the 57t" Avenue site has signed a lease with Cash N Pawn to lease about 5,000 square feet of space. He has also leased the remaining 3,000 square feet to a nail salon and a beauty supply store. 8. BUDGET UPDATE Ms. Dacy stated she wanted to inform the HRA of the types of information staff is going to be putting together. The City Council wants to meet jointly to discuss some of these issues as well as what the redevelopment priorities are from here on out now that they have a significant accomplishment on the Lake Pointe site. HOUSING & REDEVELOPMENT AUTHORITY MINUTES. JUNE 3. 1999 PAGE 7 Mr. Commers asked what Ms. Dacy thought was the logical way to approach this. It seemed to him that the HRA needed an overall analysis of its financial position before moving forward. Ms. Dacy stated that as of today, staff feels that they have a good handle on it. Ehlers and Associates have completed an analysis of the tax increment funds. Staff would be able to distribute that information before the joint meeting and review the information at that meeting. The issue of where they go next would be fairly straightforward. There are adequate funds to continue the housing programs. Some of the existing priorities are now coming to the top of the list. Mr. Commers asked when the HRA would receive the budget. Ms. Dacy stated the goal is to get the budget to the HRA prior to the joint meeting. She has not yet had a chance to identify the date for the meeting with the City Council. It may be mid to late July when the joint meeting is held. The next HRA meeting is July 1 and she should have a date at that time. Mr. Commers requested staff to give the HRA the analysis so they can look at it at the next meeting. OTHER BUSINESS: Mr. Meyer stated he liked everything in the memo regarding the Medtronic project and the goals that go with it. Is there a conflict with what is being proposed and item 33 of the Council/Commission survey? Ms. Dacy stated, yes. That is one of the issues that the City Council wants to discuss with the HRA. TREE TRANSPLANTING COSTS Ms. Dacy referred to her memo of June 3, 1999, to Mr. Burns regarding tree transplanting costs and the use of HRA property by Medtronic, Inc. These are two issues that have come up recently with Medtronic. Ms. Dacy stated that as part of the construction process, there are 86 trees affected by the road construction that would have to be destroyed or demolished. She asked them to prepare an estimate of what it would cost to transplant some of those trees. They determined that there are approximately 28 trees that would be eligible for transplanting. These trees would probably be re-located to the southern portion of the site. Because McGough's contractor is there and ready to be mobilized, relocating 28 trees would cost approximately $3,300. The trees are fairly good size. The deciduous trees are 6 to 8 inches in caliper width and about 15 feet tall. She felt it would be worth the effort to try to keep those trees. She recommended the HRA authorize staff to spend up to $3,300 to transplant trees. HOUSING & REDEVELOPMENT AUTHORITY MINUTES. JUNE 3. 1999 PAGE 8 Ms. Schnabel stated she did not think they could replace the trees for that amount of money. She thought it would be a good expenditure. Ms. Dacy stated the second issue is that the contractor is requesting to use a portion of the HRA's property for the construction trailers, to stockpile topsoil, and to construct a fence. Based on the grading plan, almost the entire eastern half of the site will be worked on. Staff is suggesting that HRA grant permission to do that with the understanding that we get a certificate of insurance for the appropriate amounts. Ms. Schnabel asked, at the completion of construction, if the property would then be cleared. If for some reason that portion of the property would not be developed, she would like to insure that it is returned to its present state. MOTION by Ms. Schnabel, seconded by Mr. Meyer, to authorize the expenditure of $3,300 for the transplanting of 28 trees identified on the Medtronic site. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Mr. Schnabel, seconded by Mr. McFarland, to permit the fence to be erected to protect the construction trailers and materials and to permit the storage of topsoil to be stockpiled on the western portion of the site with the proviso that, once construction is completed, the vacant land be returned to its present state. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ADJOURNMENT: MOTION by Ms. Gabel, seconded by Ms. Schnabel, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE JUNE 3, 1999, MEETING OF THE HOUSING & REDEVELOPMENT AUTHORITY ADJOURNED AT 8:29 P.M. Respectfully submitted, Lavonn Cooper Recording Secretary