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HRA 08/05/1999 - 00002726CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING AUGUST 5, 1999 CALL TO ORDER: John Meyer was appointed as Acting Chairperson in the absence of Larry Commers for the August 5, 1999 Housing and Redevelopment Authority meeting. Acting Chairperson Meyer called the August 5, 1999, Housing and Redevelopment Authority meeting to order at 7:58 p.m. ROLL CALL: Members Present: John Meyer, Pat Gabel, Jim McFarland Members Absent: Larry Commers, Virginia Schnabel Others Present: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator Julie Vogel, Accountant Jim Casserly, Development Consultant Gene and Mary Harstad, 500 Ironton St. N.E. AI Kellner, 8182 E. River Rd Brenda Mal, 8182 E. River Rd. Robert Gerloff, Robert Gerloff Residential Architects Pete Musty, Robert Gerloff Residential Architects Michael Kelly, Anoka County Highway Department APPROVAL OF THE JULY 1, 1999, HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES: MOTION by Ms. Gabel, seconded by Mr. McFarland, to approve the July 1, 1999, Housing & Redevelopment minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA: RYLUND PROPERTIES REVENUE NOTE: MOTION by Ms. Gabel, Seconded by Mr. McFarland, to approve the Consent Agenda as presented. HOUSING & REDEVELOPMENT AUTHORITY MEETING. JULY 1. 1999 PAGE 2 UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. C LAIMS AND EXPENSES: MOTION by Ms. Gabel, seconded by Mr. McFarland, to approve the Consent Agenda as presented along with the additional expenses presented at the meeting. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARING: 3. PUBLIC HEARING REGARDING THE SALE OF EXCESS PROPERTY AT 8184 EAST RIVER ROAD: MOTION by Ms. Gabel, seconded by Mr. McFarland, to open the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPEN AT E:�[��i a►�� � Mr. Fernelius explained that the sale of excess property at 8184 East River Road was the focus of the hearing. The property is located in the Riverview Heights neighborhood of Fridley in the northwest quadrant. The Anoka County Highway Department owns the property. It was acquired as part of their road expansion project last year. The house was too close to the roadway so they acquired the property and tore the house down. The vacant lot then was available for sale. In March of 1999, Mr. AI Kellner, the gentleman who lives on the adjoining lot to the south at 8182 East River Road, expressed interest in buying the excess property. Anoka County then contacted HRA staff about becoming involved in the transaction. Anoka County is prevented from selling this site directly to Mr. Kellner so they needed a third party to assist them and that is why the HRA has become involved. Mr. Fernelius stated the HRA assisted Anoka County in another project on East River Road located north of Locke Lake dam so the HRA does have some precedent in doing this. Staff had scheduled this item for the July 1St HRA meeting, had sent out a notice, and was subsequently contacted by Mr. Gene Harstad. Mr. Harstad owns the adjoining property to the north at 500 Ironton Street N.E. Mr. Harstad expressed some concern about the process involved in selling the property so the item was taken off the July 1 St Agenda for clarification. Mr. Fernelius stated the City discovered in talking with all of the parties involved that Mr. Kellner was the first person to express interest to the County in the HOUSING & REDEVELOPMENT AUTHORITY MEETING. JULY 1. 1999 PAGE 3 property and that is how the negotiations began. Anoka County prepared a deed and conveyed that to the HRA. Mr. Kellner deposited funds with the HRA in advance of the sale. The City sought legal counsel, and it was determined that they couldn't reverse the transaction and it had to proceed with conveyance of the property. It is staff's recommendation to conduct the hearing and, as part of the action, also prove conveying the property to Mr. Kellner. Mr. Meyer thanked Mr. Fernelius and asked if any members of the HRA had any questions or comments. Ms. Gabel stated she did not and wanted to hear from the audience. Mr. Meyer asked if any members of the audience wanted to come forward with any questions or concerns. Mr. Gene Harstad, the owner of the adjoining property at 500 Ironton St. N.E., stated he would like to know why he was not notified of the sale or given the opportunity to buy the property. He had no knowledge of this until he heard the last meeting was postponed. Mr. Fernelius stated that the explanation given to him was that Mr. Kellner was the one who contacted Anoka County first and that is how the discussion began. The HRA was merely complying with the law and providing the public hearing notice and that is how Mr. Harstad found out about it. Mr. Fernelius stated that the City has no ability to put this out for bid in this situation. Ms. Gabel asked Mr. Fernelius what the process would have been if Mr. Kellner had not contacted the county for handling this property. Mr. Fernelius stated he didn't know. The County contacted them about assisting them in conveying this property to Mr. Kellner. The City was merely acting as the pass through. If it was an HRA site, they could sell it to any party they wanted to and conduct a public hearing to notify people of what they are doing. Acting Chairperson Meyer asked if the County is obligated to notify adjacent property owners. Mr. Fernelius stated that it was presented to him that the County does not even have the ability to sell the property directly to a private owner and that is why the City got involved. Mr. Michael Kelly, Chief Right-of-Way for Anoka County, stated that Mr. Kellner did not contact them. They contacted him because they were in the process of purchasing a portion of his property as they are with Mr. Harstad's. In the original discussion, in October of 1998, Mr. Kelly went out personally to make a proposal to Mr. Kellner to purchase that portion of property that they needed. Mr. HOUSING & REDEVELOPMENT AUTHORITY MEETING. JULY 1. 1999 PAGE 4 Kellner raised the issue whether or not he could buy the property next door. That was the point at which negotiations were started and there wasn't anything magical about it. It came up as a part of the original negotiation. Mr. Kelly made a commitment to Mr. Kellner subject to a series of things. He needed County Board approval because they have to convey property and so they needed the HRA to get involved and since that time they have been working on it. He stated that when they transferred the balance of the property out, they purchased the entire lot and needed a part of that lot for the right-of-way for the road. When the balance of the property is sold, the County retains the right of access to that road so technically it really isn't much good for much other than the extension of the yard. He stated they haven't had a situation in the past when someone else has expressed an interest in it. He stated the negotiations with Mr. Kellner date back to October of last year. He stated it wasn't a formal process. Mr. Meyer asked Mr. Kelly if he was under any obligation for a public hearing or for a bidding process for the disposal of land. Mr. Kelly stated that if the County had decided to sell the property, then there would have been a requirement to do a public offering of some kind either through a public bid or auction or something. He stated they were not selling to the public because they can't sell without having a public offering. Selling the parcel of land in this way negates having the requirement of having a public bid so that is why the County needs to work with the HRA on this matter. Ms. Gabel asked if in this type of situation it was a case-by-case basis. Mr. Kelly stated that is correct. The County immediately acted on the interest of Mr. Kellner in that faith. They made a commitment to Mr. Kellner and followed through with it on that point. Mr. Meyer asked if there were any other questions of Mr. Kelly by the HRA members. No members spoke. Mr. Meyer thanked Mr. Kelly. Mr. Meyer asked if there were any other members of the audience who wished to be heard on this matter. Mr. AI Kellner, 8182 East River Road, stated that he wanted to point out that his property really has no front or back yard. He stated that Mr. Harstad's lot was just as big as his lot and the adjacent lot combined. Mr. Meyer asked Mr. Kellner if he approached Anoka County first regarding the lot. HOUSING & REDEVELOPMENT AUTHORITY MEETING. JULY 1. 1999 PAGE 5 Mr. Kellner stated that Anoka County did not approach him first, he approached the County initially. Ms. Gabel asked Mr. Kellner more questions regarding his current yard dimensions. Mr. Kellner stated that when the appraiser came out to appraise his yard, they stated that his house could never be built on his lot adhering to Fridley's current codes. Ms. Gabel asked if this was a nonconforming lot and if he could every rebuild on that lot if something happened to his home. Ms. Dacy stated that if it is a non-conforming lot, he would probably have to go through the variance process to rebuild. Mr. Harstad stated he is losing 32% of his property including both sides adjacent to East River Road and off the front side. He has a nonconforming house also. He stated that he tried to contact Mr. Kelly more than two years ago. He stated that he called Mr. Kelly's direct line at the courthouse and left a message and to this day he has not received one call back. He stated that Mr. Kelly has only negotiated with the buyout houses; and since he did not have a buyout house, he has never received a call. He stated that he tried to call him many times and was always assuming he would be in the courthouse in the morning when he would try to call. Ms. Gabel asked Ms. Dacy and Mr. Fernelius is they could tell her the square footage of the lots without the two parcels. Mr. Fernelius stated that it does appear Mr. Kellner's situation has improved but he couldn't tell her the actual numbers. The parcel in question that is being sold to him is 50' by 110'. Ms. Dacy stated that they are probably the old 25' wide lots so Mr. Kellner's 50' by 110' is almost the same dimension at 5,500 square feet. Ms. Dacy stated that Mr. Harstad's lot is a little bit bigger because it has part of Lot 1,2 3, and 4. She stated that Mr. Kellner's lot would probably get toward 9,000 - 10,000 square feet. Mr. Harstad is suffering a little bit of a loss as he pointed along Ironton as well. She stated that by estimating, there are probably approximately within maybe 500 - 1000 square feet of one another. Ms. Gabel asked if both of the lots were nonconforming. HOUSING & REDEVELOPMENT AUTHORITY MEETING. JULY 1. 1999 PAGE 6 Ms. Dacy stated that for lots that were plotted prior to 1955, the minimum boundary is 7,500 square feet. There may be some nonconformities about structure but the lot area is always the most important part. Mr. Meyer asked if there were any more comments. No members in the audience spoke. MOTION by Mr. McFarland, seconded by Ms. Gabel, to close the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE PUBLIC HEARING CLOSED AT 8:25 P.M. Ms. Gabel stated that she did not feel the HRA had the jurisdiction to make the decision of who gets the sale. She stated she is in favor of the lot being sold to Mr. Kellner. MOTION by Mr. McFarland, seconded by Ms. Gabel, to approve the sale of the excess property at 8184 East River Road to Mr. Kellner. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: 4. CONSIDER RESOLUTION NO. HRA 9-1999 FOR HRA TAX LEVY FOR TAXES PAYABLE IN 2000: Mr. Fernelius stated that this is the fourth year that the HRA will utilize a tax levy. The levy, which is equivalent to .0144% of the City's total taxable market value, produces between $185,000 and $200,000 in revenue for the HRA. Most of the revenue is used for the repayment of a loan that the HRA has received from the City in 1995. That was a$1'/ million loan that was used to capitalize our revolving loan program and each year the HRA makes principal and interest payments of $143,000 to the City. The remaining funds are deposited into the HRA's general fund for other activities that the HRA has carried out. As of August 1, the HRA has paid off $358,000 of the $1.5 million loan leaving a principle balance of $1,320,000. The term of this loan from the City runs through February 1St of 2012. In addition to the resolution tonight, the City Council will consider a separate resolution consenting to the HRA tax levy and that will take place at their August 23rd meeting. Both of these actions have to occur by September 15, which is the deadline for certifying the HRA tax levy to Anoka County. Staff's recommendation is to approve the resolution adopting a 1999 tax levy for taxes payable in 2000. HOUSING & REDEVELOPMENT AUTHORITY MEETING. JULY 1. 1999 PAGE 7 Mr. Meyer thanked Mr. Fernelius and asked if there was a motion regarding this matter. MOTION by Ms. Gabel, seconded by Mr. McFarland to approve Resolution No. HRA 9-1999, Adopting a 1999 Tax Levy Collectible in 2000. UPON A VOICE VOTE, ALL VOTING AYE, VICE CHAIRPERSON MEYER DECLARED THE MOTION CARRIED UNANIMOUSLY. INFORMATION ITEMS: 5. SCATTERED SITE ARCHITECTURAL DESIGN CONCEPTS (ROBERT GERLOFF, GERLOFF RESIDENTIAL ARCHITECTS): Mr. Fernelius explained that at the HRA meeting in July he presented some preliminary drawings and information that had been prepared by Robert Gerloff, a residential architect the City has been working with since April of 1999. Mr. Gerloff is working on a pattern book to suggest designs for new homes that are to be constructed on the Scattered Site lots. Preparation is also needed for plans for the site at 1015 Mississippi Street. He stated that Mr. Gerloff has some information that he would like to share this evening. Mr. Robert Gerloff and Mr. Pete Musty presented the plans they have been working on. Mr. Gerloff explained that the processes they have been working on involved three distinctly different plans, with one of those plans being selected for further development. He explained that the consensus of the focus group expressed interest in the one-story design and that design had the most potential. Mr. Gerloff explained the enhancements they could also add to the house. Those variations involved many changes to the appearance of the house substantially. He explained that the one-story/ rambler/ranch house in America is approaching historic status as they are reaching 50 years old. The first rambler neighborhood in the country in Atlanta was just granted historic status this past year by the National Park Service. The guiding principle they are operating on for development of these plans is that the character of the neighborhood should be protected and continued in the in-fill housing. Mr. Gerloff asked the HRA if they were headed in the right direction on operating on that principle and, secondly, do they have permission to continue to develop the plan itself? Mr. Meyer asked if there were any questions of Mr. Gerloff. Ms. Gabel stated that the HRA has talked about other styles and asked if it was a goal of the HRA to include other styles of houses for consideration. Mr. Meyer stated that it seemed to him they were searching for a style that would fit in properly to a neighborhood. He questions whether they should carry it through construction documents. Should they do more on that particular rambler HOUSING & REDEVELOPMENT AUTHORITY MEETING. JULY 1. 1999 PAGE 8 style house Mr. Gerloff presented, or should they see what contractors think of building a different type of house? Mr. Gerloff stated that many neighborhoods are taking on the in-fill housing issue and being really aggressive with what they desire for their community. He stated that what Fridley is doing is actually really well aligned with many other communities. Ms. Dacy stated that the City is very proud of the Scattered Site program to date. When the Mississippi lot came up, it did raise a lot of issues about the style of housing that the City wants to continue under the HRA's program. Ms. Dacy stated that she thought the City was looking for a new plan so the architect came in with three diverse options with the rambler, the modified split with the extended garage, and the 1'/ story with a detached garage. The rambler plan is a traditional style in Fridley and certainly the enhancements Mr. Gerloff has added to the plans could be considered by the HRA. Ms. Gabel asked what site this plan would be considered for. Mr. Fernelius stated that the plan would be considered for the Mississippi Street site, but elements of the plan could be duplicated elsewhere, ramblers are predominant in many Fridley neighborhoods. He stated that the goal they are trying to achieve is to use the rambler plan as a model and use elements elsewhere in the City. Ms. Gabel stated she thought it was appropriate for the Mississippi Street site and asked what kind of costs were involved. Mr. Gerloff stated that the goal would be to have it sell for around $150,000 - $250,000 which would make construction costs of around $200,000, but it is hard to be precise because of the greatly inflated construction climate. Mr. Meyer stated what bothers him is that they are seeming to fixate on this as being a bland average of ramblers. It seems to him it might be better for Mr. Gerloff to develop the other two types of houses to the level of the rambler Mr. Gerloff presented and use those for the general guidelines for contractors to embellish upon. He stated $200,000 is a very rich amount of money for a house on Mississippi Street. He stated to have a house brought in on a reasonable budget they have to watch what interior finishes are added. He stated they might be trying to establish a house that wouldn't get off the ground and maybe it would be better to develop several other types of houses. Mr. Gerloff stated that the uniqueness of the house at this point is very much in the plan. HOUSING & REDEVELOPMENT AUTHORITY MEETING. JULY 1. 1999 PAGE 9 Mr. Meyer stated that the purpose of the meeting is neither to approve nor disapprove but to review the options. Ms. Dacy stated that maybe with both the Chairperson and Vice Chairperson being absent, they could possibly come back again to discuss this. Commissioner Meyer thanked Mr. Gerloff and stated that they appreciate his work. 6. INTRODUCTION OF NEW REMODELING ADVISOR: Mr. Fernelius introduced the new Remodeling Advisor, Ginny Harrington. Ms. Harrington started the first part of July and the City is excited to have her on board. She has a lot of great skills and experience in the remodeling industry. Ms. Harrington stated that she can offer contractor selection, material selection, design ideas, and going over scope work. She stated she has a lot of information handouts on zoning and building codes as well. Mr. Meyer asked Ms. Harrington if she would be aiding in writing specifications for remodeling for additions to houses or whatever a homeowner would want to do, that decide the quality, scope of the work, cost, and agreement on price. Ms. Harrington stated that remodeling involves the initial experience of prioritizing what the project is and seeing what a person wants. There is education about different levels of materials regarding material quality, different contractors, time line, paying schedule, and prioritizing projects. Stipulations for building are dictated by building codes, and she can help with that information pertaining to what is required and review contracts possibly before signing. Mr. Meyer stated that if she reviews contracts, can she spell out the quality so the homeowner is not misled? Ms. Harrington stated that is correct. It is an educational process and the City has great informational handouts that can be mailed out. She stated that remodeling could be a complicated process but does not have to be a difficult process and the bottom line is that your home would be more enjoyable. Mr. Meyer thanked Ms. Harrington. 7. TRUNK HIGHWAY 65 UPDATE: Ms. Dacy stated that at the last meeting the HRA authorized staff to execute a contract with an engineering firm to look at the feasibility of constructing a sheet pile wall to support the construction of an additional northbound lane from Lake Point Drive intersection on TH 65 north to approximately just beyond the HOUSING & REDEVELOPMENT AUTHORITY MEETING. JULY 1. 1999 PAGE 10 intersection with Moore Lake Drive. City staff had a meeting with the consultant, S.E.H., last week, and it was their determination that a sheet pile wall can be constructed with the appropriate ties. The Department of Transportation staff will be reviewing the design to be assured that the sheet pile design would work. Ms. Dacy stated the next step is to have the City make an application by September 20, 1999, for federal funding to construct a project. Funds will not be available until the year 2002 or 2003. One issue that the City Council has to address in the next 2- 3 three weeks is that they have to amend the comprehensive plan to state that the project is of significance and community concern and is consistent with transportation plans with the metropolitan areas. The legislature last year allocated $500,000 to the City of Fridley to help with the expenses for the design and engineering of this project. The City has completed the paperwork of obtaining the funds that will be administered through the Department of Trade and Economic Development. The HRA does not need to take any action at this point in time, but staff will come back with further updates on the project at the September meeting. A consultant should be completing the final report by September. Ms. Gabel asked Ms. Dacy exactly what she meant by tying things down by the lake and what it meant aesthetically. Ms. Dacy stated that it would all be done underground. The aesthetic issue is that the sheet pile walls are kind of a rust brown. The consultants are evaluating the cost of a concrete exterior with some type of impression or design. This would be a very visible improvement for the next 30 - 50 years. The City is evaluating the costs and options available. Mr. Meyer asked if they were talking about putting anchors on the sides of the lake at various points. Ms. Dacy stated that at this point she did not see any details on that. Staff is focusing on the tying system so the walls will be stable. There is a turnbuckle that ties the two together right in the center. Mr. Meyer asked Ms. Dacy if they need to resurface TH 65. Ms. Dacy stated, yes. They will have to put in new pavement. Mr. Meyer stated that would be inevitable because of the sheet piling and the yielding and this and that. He also asked what color they would paint the sheet piling. Ms. Dacy stated that painting is an option however the engineer will alos look at an "impression" in the concrete so as to avoid painting. HOUSING & REDEVELOPMENT AUTHORITY MEETING. JULY 1. 1999 PAGE 11 Mr. Meyer asked if they knew how much junk, mud, and muck they found in their borings. Ms. Dacy stated that there was a certain amount of peat but the depth of the wall can go through that and hit better soil below. Staff is confident that it would be a successful design with lateral ties. 8. NORTHSTAR CORRIDOR PROPERTY ACQUISITION: Ms. Dacy stated another issue came up that staff would like the HRA to evaluate. A number of jurisdictions are participatiing the Northstar Corridor Commuter Rail Project. The transportation system would run from downtown Minneapolis through Fridley all the way to St. Cloud. The purpose of the Commuter Rail Line would be to decrease the amount of traffic on the highways due to the sudden growth of the Metropolitan area north to the St. Cloud area. Transportation analysis shows that there is a significant amount of the commuting public that live in points north and commute into downtown Minneapolis or Coon Rapids or Fridley. The Commuter Rail Line would provide express commuting peak hour service. A number of trains would come in through the southbound corridor and then in the afternoon head northbound. Fridley would be the first station site. There are station sites strategically placed along the corridor north to St. Cloud. Ms. Dacy stated the station site in Fridley being evaluated is located along 61 St Avenue near East River Road. The two vacant properties on either side of the rail line tracks are being considered. Mr. Neilson owns the two-acre lot that is on the west side and Commercial Property Investments owns the vacant land adjacent to 61 St Avenue and Main Street. The Northstar Corridor Development Authority is evaluating connecting these two sites with a pedestrian underpass under the railroad. Park and Ride lots are probably going to be placed on either side of the tracks also. Mr. Dacy stated the Northstar Authority also wants to locate a security station to be the headquarters for the TV cameras to monitor what is going on along the rail line as well as the station stops. The Neilson property on the west side of the tracks is now platted as single family lots and zoned R 1. Mr. Neilson also owns the vacant property to the north. The HRA evaluated this site as part of its redevelopment project program. The reason they are suggesting this is that the station stop is an important asset that would be very advantageous to Fridley for residents and businesses and would form a very unique connection to the new campus for Medtronic. Medtronic already has issued a letter of support of the project. This new rail might relieve congestion along TH 65 and on University Avenue. This site may want to be considered by the HRA to be included in its redevelopment program at some point in the future. The HRA could work with the Northstar folks regarding the station site but also potential as a redevelopment site for additional developers. Staff is suggesting that staff proceed to negotiate an option agreement for the Neilson property and go HOUSING & REDEVELOPMENT AUTHORITY MEETING. JULY 1. 1999 PAGE 12 through the process of including the land in the redevelopment project area. If any of the land is used as a station site, the HRA would have to be reimbursed by Northstar Authority. Staff would come back in September with more information unless there are objections by the HRA. The Metropolitan Transit Commission is evaluating obtaining federal funds for Park and Ride funds to acquire the Commercial Property Investment site. Mr. Meyer stated that his cynical comment is that the whole corridor won't have a chance because it is far too inexpensive. Ms. Dacy stated that recently the Northstar Authority received a significant amount of federal funding. The project is supported by Mr. Oberstar so if the environmental process is completed as planned by the end of next year, construction could begin as soon as the year 2003. Mr. Meyer asked how the Burlington Northern Railroad felt about this. Ms. Dacy stated that the Burlington Northern Santa Fe Railroad is part of the Northstar organization and is a very key actor in the whole project and is cooperating 100%. Mr, Meyer asked if people are going to be willing to take public transportation over their precious automobiles. Ms. Gabel stated that she would rather take it if it takes her where she wants to go. 9. 1999 - 2000 BUDGET UPDATE: Ms. Dacy stated that the Budget Update would be discussed in September. ADJOURNMENT: MOTION by Mr. McFarland, seconded by Ms. Gabel to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECLARED THE MOTION CARRIED AND THE MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY WAS ADJOURNED AT 9:20 P.M. Respectfully submitted, Signe L. Johnson Recording Secretary