HRA 02/03/2000 - 6318L
HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, FEBRUARY 3, 2000
MEETING 7:30 P.M.
PUBLIC COPY
(Please return to Community Development Department)
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CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING
FEBRUARY 3, 2000, MEETING, 7:30 P.M.
AGENDA
LOCATION: City Council Chambers
CALL TO ORDER
ROLL CALL:
APPROVAL OF MINUTES:
December 9, 1999
CONSENT AGENDA:
Resolution to Amend HRA By -Laws ........................ ...............................
1
Approve Krass Monroe Contract ............................. ...............................
2
Authorize Application to MHFA for First -Time Homebuyer Program ...............
3
Resolution Authorizing Official Depositories .............. ...............................
4
Claims and Expenses ........................................... ...............................
5
ACTION ITEMS:
Authorize Printing of: "Fridley Housing Replacement Program:
A Pattembook for New Homes" ............................... ...............................
6
Consider Interest Rate Write -Down Program ............. ...............................
7
Request to Fund Noise Wall Enhancements .............. ...............................
8
INFORMATION ITEMS:
Gateway East Schedule and Update ........................ ...............................
9
MedtronicUpdate ................................................ ...............................
10
Remodeling Advisor Update ................................... ...............................
11
Rehab Program Update regarding Eligible Improvements ............................
12
Council Commission Survey Discussion .................... ...............................
13
Update on Miscellaneous Property Acquisitions ........... ...............................
14
OTHER BUSINESS
ADJOURNMENT
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING
DECEMBER 9, 1999
CALL TO ORDER:
Chairperson Commers called the December 9, 1999, Housing and Redevelopment
Authority meeting to order at 7:38 p.m.
ROLL CALL:
Members Present: Lary Commers, Virginia Schnabel, Pat Gabel
Members Absent: John Meyer, Jim McFarland
Others Present: Barbara Dacy, Community Development Director
Grant Femelius, Housing Coordinator
Jim Casserly, Development Consultant
Julie Vogel, HRA Accountant
APPROVAL OF THE NOVEMBER 4 1999 HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES:
MOTION by Ms. Schnabel, seconded by Ms. Gabel, to approve the November 4, 1999,
Housing and Redevelopment Authority meeting minutes as presented.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
CONSENT AGENDA:
1. COLA INCREASE FOR HRA EMPLOYEES (AMENDED RESOLUTION).
2. APPROVE APPRAISALS FOR GATEWAY EAST PROPERTIES.
3. CLAIMS AND EXPENSES.
Ms. Schnabel asked Ms. Vogel a question regarding the same check number that was
included twice on the first page for Ehlers and Associates. The check number is 27170.
Ms. Vogel stated that the expenditure was recorded twice with the same amount code.
She will research that problem on the system the next day.
Mr. Commers asked if this was going to be the last payment on the school refunds.
Ms. Vogel stated that it was not. They have one payment to make for 1999, and then a
full year of payments for 2000.
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HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER 4, 1999 PAGE 2
MOTION by Ms. Schnabel, seconded by Ms. Gabel, to approve the Consent Agenda as
presented.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
ACTION ITEMS:
4. APPROVE RESOLUTION AUTHORIZING EXECUTION OF RESTATED
DEVELOPMENT CONTRACT, MEDTRONIC, INC.
Ms. Dacy stated that the purpose of the amendment to the Medtronic development
agreement is to provide for the sale of property to Medtronic Inc. The HRA intended to
do this originally; but because of Medtronic's phase of construction plan and timing
issues, they were not able to conclude it until this month. The amendment states that
Medtronic will issue to the HRA a note of approximately $5,000,000 at 8.25% interest
for acquisition of the property. Since the last meeting in November, Medtronic has
issued a letter to the HRA requesting conveyance of the remaining 14 acres of the site,
because they have finalized their plan to construct more than 500,000 square feet for
Phase 1 development.
Mr. Commers asked Ms. Dacy when Medtronic is asking the conveyance to occur.
Ms. Dacy stated that Medtronic is suggesting that the conveyance occur before the end
of this year. The property will then become fully taxable before the year 2000.
Mr. Commers asked if that affects the development agreement.
Mr. Casserly stated that this request is very timely, because it fits in perfectly with the
amendment agreement.
Ms. Dacy stated that the amended contract provides a copy of the most recent draft in
the weekend packet. Medtronic would receive up to 90% of the tax increment through
the life of the district to the year 2025, the HRA would retain ten percent, but the land
sale payments would equal another 10% of the increment until the year 2010. In the
year 2011, the HRA would obtain enough increment to achieve the present value of
$1,085,000; and for the remainder of the district through the year 2025, Medtronic
payments would equal 20% of the increment they received. The first phase plans are at
514,000 square feet. They made a lot of progress on the foundations and they are
anticipating the filing of the permits for the remaining of the buildings tomorrow and for
sure by the end of this year. In total, there will be $29,000,000 over the life of the
district that would be paid to the HRA representing a present value of $10,000,000.
$83,000,000 would go to Medtronic having a present value of $32,000,000.
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HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBERA ? 1999 PAGE 3
Ms. Dacy stated these amounts are the same as discussed in May. Staffs
recommendation to the HRA is two -fold. The first resolution authorizes execution of the
development agreement of the amended contract. The second resolution makes it clear
that the HRA is agreeing to extend the term of the district to the year 2025 and modifies
the tax increment financing plan for that district. Ultimately, the City Council has to
approve the resolution to effectuate that extension. People from Medtronic are in
agreement with these changes and resolutions.
Mr. Casserly stated that is correct. The only changes being suggested are a couple of
very technical changes regarding how the note would be administered. They want the
HRA to provide them with a notice. They are going to making direct payments to the
HRA in accordance with the terms in the note. It gives them an opportunity to review
the amounts and gave them notice of the amount that is going on the bill, essentially
invoice them for that and then they will pay us. If they do not pay us, it is a default on
the agreement and they can discontinue making any payments in the future. That is
really the only change. Both of these resolutions are contingent upon the City Council
performing certain actions. The City Council has not approved the special legislation
nor have they approved the extension of the district.
Ms. Dacy stated that they have been awaiting completion of the development contract.
They wanted to be assured that all issues surrounding the amended development
contract were resolved.
Mr. Commers asked when this would be on the Council agenda.
Ms. Dacy stated that it would be on the December 13 agenda.
Mr. Commers asked if they have been advised to the modification they are making on
the note.
Ms. Dacy stated that the City Council receives a copy of the HRA agenda.
Mr. Casserly stated that they are also hopeful that they can close prior to Christmas.
They would also receive a small land- holding payment. They have provided them
notice that they intend to acquire the balance and theoretically they are to close
December 8 or 9 but there are still some things occurring with the title and closing within
the next 10 or 12 days.
Mr. Commers asked about the revised contract. Based on what they know in terms of
the reimbursable items, what are the approximate amount of payments they will be
getting on each August and February?
Mr. Casserly stated that the payments are going to be approximately starting out at
about $100,000 every six months in approximately the year 2002. It would then reach
approximately $250,000 by 2008 or 2009. In the year 2012 and thereafter, it should
range from $450,000 up to over $600,000 every six months.
,4 :
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBERA, 1999 PAGE 4
Mr. Commers stated he is concerned about it from a budget and a planning point of
view as to what the cash flow may be in terms of future projects. The first couple of
years the payments are not significant.
Mr. Casserly stated that it is not significant at first. There will be $200,000 per year that
will be paid on the note and $200,000 per year that the HRA will receive for all of the
other administrative activities. These numbers are just for the note amounts, and there
will also be an addition to that the HRA will be receiving for its program operations.
Ms. Gabel asked what the installment agreements are.
Mr. Casserly stated that is the note and the note represents the installment agreements.
MOTION by Ms. Gabel, seconded by Ms. Schnabel, to adopt the Resolution HRA 15-
1999, Authorizing Execution and Delivery of an Amended and Restated Contract for
Private Redevelopment by and between the Housing and Redevelopment Authority in
and for the City of Fridley, Minnesota and Medtronic, Inc.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
MOTION by Ms. Gabel, seconded by Ms. Schnabel, to adopt the Resolution HRA 16-
1999, Authorizing the Extension of the Duration of Tax Increment Financing District No.
6 and Approving the Modified Tax Increment Financing Plan Relating Thereto.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
5. APPROVE PROPOSED ACQUISITIONS:
a. Duplex at 340 -353 57t' Place
Mr. Fernelius stated that this is the acquisition of the duplex in the Gateway East project
area. This is a two -unit rental property owned by William Fogarty. He owns a company
by the name of Century Real Estate. It is currently occupied by two tenants who both
have leases. The building was constructed in 1960, and each unit has two bedrooms.
The rents range from $650 - $675 per month. After a month and a half of negotiations,
they have reached an agreement with Mr. Fogarty. The sale price is $142,500. This is
higher than the appraised value at $135,000. They are going to execute an escrow
agreement with the seller, basically, placing all the sales proceeds in an escrow account
with the title company by the end of this year. They will also issue a 90 day notice to
the tenants. This will give them until the end of March to vacate the premises. The
City's relocation consultant will be working with the tenants to find replacement housing.
Once completed, they are anticipating closing on April 1 and then transferring the title
and the building would be empty at that point. The property would be tom down and
made available for the project. Staff is recommending approval of the purchase. Dan
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HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER, 1999 PAGE 6
Mr. Commers asked if the residents have an option to take a lump sum in lieu of the
other payments.
Mr. Wilson stated that is an option. The HRA has the option of how to make the
payments to the tenant.
Ms. Gabel asked the appraiser, Ms. Schwartz, to address the market situation and the
increasing cost of land.
Ms. Schwartz stated that in Fridley they are seeing higher rates for properties as well as
the whole metro area. Fridley is seeing more than the metro wide because Fridley is
more desirable than other areas. There has been an excessive amount of appreciation
throughout the summer and springs months. There has been dual offer situations
where more than one person will bid on a property and as a result they will sometimes
pay more than the list price. That is a combination of low interest rates and general
health of the economy.
MOTION by Ms. Gabel, seconded by Ms. Schnabel, to approve the purchase and
escrow between the HRA and Mr. Fogarty for the purchase of 349 -353 57th Place.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
Ms. Gabel asked if the fees paid for relocation come out of TIF District 2 or 3.
Mr. Femelius stated that the money will come out of the General Fund.
Mr. Casserly stated that it may be difficult to escrow those dollars.
Mr. Commers stated that he did not see this listed as TIF District 2 or 3 payments.
Ms. Dacy stated that vacant land expenses are using the acquisition price. The
Werner's Furniture did include $20,000 of relocation. It is a matter of timing. Whatever
they can get done by the end of this year, they will utilize those funds.
Mr. Commers stated that if they could utilize some of them, then they could make a
lesser payment on the note.
Ms. Dacy stated that is correct.
5b. Werner's Furniture:
Mr. Commers stated that this is the Werner's Furniture acquisition on 3`d Street and 59th.
Mr. Fernelius stated this is in the Hyde Park Neighborhood. It is one of two commercial
buildings in the neighborhood. The other is the US West building. It has been used as
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER 22r, 1999 PAGE 7
a furniture refinishing and repair business for a number of years since the mid- 1980s.
The structure was built in the 1950s probably as a used car showroom. The building is
approximately 2100 square feet in size. The parcel of land it sits on is a little over
15,000 square feet. The purpose of this acquisition is to move a non - compatible land
use in a primarily residential area and offer that site for redevelopment. They would like
to take the structure down and sell it in two lots for construction of single family homes.
Mr. Femelius stated the owner has agreed to a voluntary sale for $140,000. As an
incentive, they have offered to provide relocation benefits since this is a business and
more expenses involved. The total package then would be $160,000. Most of the
transactions will involve escrow agreements, and that is what they are going to do in
this case. They will escrow the money and in the meantime conduct some
environmental tests to make sure there are no problems out there. They would close on
the property on February 15. If there are any problems, they have the option of
terminating the agreement and deciding what they want to do at that point. Assuming
they do close on February 15, the tenant would be allowed to remain in the property for
a period of six months to allow enough time to start construction on a new building in
the City of Andover. They would assist him in whatever way with his relocation
assistance. He would not be paying rent, but would be responsible for paying taxes,
utilities and making sure the property is insured and the HRA would be protected
against any liability. Staffs recommendation is to approve the purchase.
Mr. Commers stated that the bottom line is that the property is $140,000, and he is
collecting in a lump sum for the relocation. They will owe no other relocation expenses
for him.
Mr. Fernelius stated that is correct. There was a change in the transaction from what
they presented in the memo. They are talking about placing all of the money in escrow.
They will not close on it until after the testing is done. When they close, the owner will
get all of the money. He needs those funds to construct the new facility.
Mr. Commers asked if they would be doing soil borings.
Mr. Fernelius stated that is correct.
Ms. Gabel asked if he would be paying the taxes.
Mr. Femelius stated that is correct.
Ms. Schnabel asked if he was only paying the first half of the year's taxes.
Mr. Fernelius stated it would be pro -rated through the date of closing.
Mr. Commers stated that they have to notify the County about their acquisitions and
handle the tax appropriately.
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HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER 0, 1999 PAGE 8
MOTION by Ms. Schnabel, seconded by Ms. Gabel, to approve the purchase and
escrow agreements between Michael and Barbara Larson and the HRA for 5901 3`d St.
N.E.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
5c. Scattered Site Residential
Ms. Dacy stated that the HRA needs to respond to some concerns that were raised at
the November meeting. After the November discussion, Staff met internally and talked
to the appraiser and City assessors. They heard three issues in the November meeting.
There were many questions about the strong market. There was also some discussion
about the houses being acquired and eliminating an opportunity for housing and are
they truly substandard. She would conclude with the recommendation from staff about
the efficacy of the Scattered Site Program and look at why this was initiated in the first
place.
Ms. Dacy stated that the market is very strong due to a very good economy. There are
very high sales that have driven the comparables. Valuations in the City are increasing
and they have been able to keep the tax rates fairly low so they have not had a lot of
opposition to taxes in Fridley. The City has one of the lowest in the area. The appraiser
and assessors see the future as potentially stabilizing. There may be a leveling off in
values. This situation may be around for some time. The HRA has to decide to cant'
out some of these acquisitions versus what risk it poses to the neighborhoods in which
they are located.
Ms. Dacy stated the Authority also had the question if they were truly dilapidated or if
they are truly meeting the intent of the program. In 1995, the legislature passed a law
for Fridley, Crystal and some of the central Cities that provided the Housing
Replacement program and statutorily to find what was eligible to acquire. The cost of
rehab was a tool defined in the statutes to assist them to determine if it met that test.
The appraiser and the inspector went through these sites to determine that. They do
feel that they are eligible for the Scattered Site program. They do understand they are
attractive because they are in the lower value ranges that are in high demand. People
are willing to overlook some of the rehab issues to be in the school district or
neighborhood they want to be in.
Ms. Dacy stated that when they find these houses in neighborhoods, it raises the
question if this housing is the best way to provide lower value housing. Should they be
looking at redevelopment projects and create some newer housing for people? The
HRA has acquired 28 properties. As a result, 14 homes have been built in Fridley.
Twenty -three of the 28 sites have been in those two areas with 12 new homes. This is
a very good program in turning around some difficult areas in the Riverview Heights and
Hyde Park neighborhoods. Citizen survey results stated that 42 of the respondents
stated that this program is rated one of the top concerns to them. This is a fairly strong
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBEW12, 1999 PAGE 9
endorsement of the program. The Council survey results also stated that the majority
suggested that they continue this program. Staff is recommending that they continue
this program. Staff realizes that the valuations are higher than what was seen in the
past, but the purpose of the program to help turn the neighborhoods around is well
thought and should be continued.
Ms. Schnabel stated that in making the appraisals, in just looking at the size and
appraised value offered to the owner, the dollar amount per square foot is all over the
place. There is not a standard dollar amount per square foot. What contributes to that
fluctuation? It appears that the house in the worst shape is the one that has the higher
amount.
Ms. Schwartz stated that to look at housing on a per square foot basis is not accurate
for indication of value. Typically when purchasers purchase they do not go out and look
for a house based on per square foot. They look at the dollar amount they can afford.
Ms. Schnabel stated that she understands that from a buyer's perspective; but in terms
of an appraiser's professional opinion, is there not a consistent figure that would be
used in appraising the value of a dwelling?
Ms. Schwartz stated there was not in this price range. Part of the difference for the per
square foot variance is the value of the land. A house that has 600 square feet sitting
on a piece of land that may be of similar value to a house that has 1,100 square feet. A
portion of that purchase price is based on the land value, and to look at price per square
foot on a house would not include the price of the land.
Mr. Commers asked if they appraise the land and house separately.
Ms. Schwartz stated that they only do that in one of the approaches. This approach is
not really relied upon for used housing. This is called the cost approach. You are
looking at the appraisal cost new, and adding value of the land and subtracting the
physical appreciation. This approach has very little reliance in older houses. A
purchase does not look at the replacement cost new, you would look at what similar
properties sold for.
Ms. Schnabel stated that one of the properties is in extremely poor condition. That has
a high appraised square foot value on it. Is the majority of that money appraised on the
land and not on the structure itself?
Ms. Schwartz stated that more than likely, you are looking at a significant component of
that overall value attributable to the land. An average lot in Fridley is $22,000 -
$27,000. The value of the land represents a pretty significant percentage of that
purchase price.
Ms. Schnabel asked the size of an average lot in Fridley.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER 2r2 1999 PAGE 10
Ms. Schwartz stated that it typically is in the 8,000 - 10,000 square foot range.
Ms. Schnabel asked if any of the structures have been for sale on the open market.
Ms. Schwartz stated that as part of the appraisal process, they look at the sales history.
None of the properties have been listed with the exception of a few that have sold within
a fairly recent time period. They looked at the amount paid for some those properties
and then trended the value upward based on appreciation through statistical analysis
that is published in the local listing service. If you were to take that purchase price paid
and apply that percentage of increase for appreciation, it came very close to the end
result of what was appraised recently. This is another cross check to the appraised
value.
Ms. Schnabel asked if it was fair to do if the structure itself is in a deteriorating
condition.
Ms. Schwartz stated that typically the appreciation will consider to a certain extent the
amount of depreciation. Houses typically depreciate around two percent or so per year.
Ms. Schnabel stated that she was under the impression that one of the houses on East
River Road was non - livable.
Ms. Schwartz stated that it is currently occupied, so if someone is living in it, the
property will remain habitable until someone condemns it. This one is getting very close
though.
Ms. Schnabel stated that was why she was questioning taking the initial purchase price
and appling it to the factors of increased property values. If the structure is deteriorating
in the meantime, she would think that that would bring the price down and would not fall
within the set guidelines or standards you would apply to that price.
Ms. Schwartz stated that can be true, but if you look at what this was like when it was
originally sold was probably not significantly different as far as deferred maintenance.
This is just a cross check. The true test would be how much the comparisons were of
properties that were used as comparables. That property sold for $57,009 in 1991, and
it probably was in similar condition then. The lower value houses will go up more than
the mid- or upper- bracket houses. Housing becomes more affordable as the interest
rates come down as the economy is good and people are making more money. People
that never thought they could own a home become homeowners. Fridley is blessed
with having a very desirable location. The entry-level purchasers will pay a premium to
live in Fridley as opposed to other areas that may be deemed as not being as superior.
As a result the lower value housing will go up in greater pace than the upper bracket
housing.
Mr. Femelius stated that he would like to take the acquisitions in a little bit different
order than they are in the memo. The first property at 6175 East River Road was the
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER 22-,1999 PAGE 11
property talked about at the November meeting. The issue is the value, but they do
have a pending offer with the seller for $74,000 and they have accepted that. The
property is 40 years old with two bedrooms and slab on grade construction with a one -
car detached garage and it is 616 square feet in size. There were a number of
substandard conditions that were noted including water damage around the
foundations, rotting flooring, worn shingles, asbestos siding, and some other life safety
items. The building official was along at all the inspections, and he was involved in the
evaluation of each of these properties as the appraiser was. In terms of the rehab work,
they are estimating the rehab at about $20,000 conservatively. This is almost a third of
the cost of the new structure. This is considered a buildable lot by code. What they
would do is place the funds in escrow and then allow the seller to remain in the property
after the closing for a period of six months in order to help him find a new place to live.
Mr. Femelius stated that the next property is at 571 Lafayette Street in the Riverview
Heights neighborhood. It is similar to the last property in terms of age. It is over fifty
years old. It is a two- bedroom, slab on grade construction, 500 square feet of living
space. A lot of the substandard conditions are related to deferred maintenance around
the roof area with inadequate rood venting. There has been a lot of rotting and
deterioration of the roofing materials. There is also some buckling of a wall due to
improper drainage. There are ventilation issues, unsafe heating system, and improper
bathroom venting which has produced a lot of damage to the roof. Repairs are roughly
$15,400 or about thirty percent of the cost of the new structure. This property was
appraised at $58,000 which was the amount the owner has accepted. This is not a
buildable lot. It is a 50 foot lot so it cannot be sold as a buildable site. They would
follow the same practice in terms of closing in escrow funds.
Mr. Commers asked what they do if it is non - buildable.
Mr. Fernelius stated that they could split the site in half and offer it for sale to either one
of the adjoining owners or sell the site as is to an adjoining property owner. The other
option is to landbank it. The property to the east is a similar property in terms of age but
in much better condition. Some point in the future, they could evaluate some other
acquisition to combine the two sites for a buildable property. The last acquisition at 630
Ely Street is in tough condition. They did look at this property in 1996 and negotiated
with the owner at that time, but they could not reach an agreement on a price. It is
virtually identical to the last property talked about in terms of size and construction with
a litany of substandard conditions, due to deferred maintenance. It has fallen into
significant disrepair. It is a HUD foreclosure. The City was notified of the opportunity to
bid on it and made the decision to proceed with a bid on the property which HUD
accepted. The property was appraised at $41,500 in 1998. HUD was asking $48,001
for the property. The City made a full price offer on the property and HUD accepted it.
It is a non - buildable site but would be an important acquisition in that neighborhood and
would have a very good impact on the surrounding properties that are in very nice
condition. They would probably sell that site to an adjoining owner.
s '
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER 411999 PAGE 12
MOTION by Ms. Gabel, seconded by Ms. Schnabel, to acquire the properties at 6175
East River Road, 571 Lafayette Street, and 6175 East River Road.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
Ms. Gabel stated that they are all having trouble adapting to the escalating market, but it
is a reality and if they look in terms of the big picture it is accurate.
Mr. Commers stated that the biggest problem he sees is that these are non - buildable
lots, and they are really in a position of having to hold those without any real possibilities
of doing anything with them. That is overcome sometimes by the fact that they are in
such bad condition that there is no purpose in taking them as they are.
5d. Vacant Land Acquisitions:
Mr. Femelius stated that over the past several months, they have been evaluating a
number of vacant sites in the City of Fridley. A lot was related to the work on the
Comprehensive Plan in terms of future redevelopment sites. These lots were identified
as prime candidates for redevelopment. The purpose of the acquisitions is to gain site
control. They believe that there is strong redevelopment potential based on the
location. The sites along Central Avenue because of the development of Medtronic are
believed to be spin -off developments from that project between those two campuses.
They do not have specific development plans prepared for those properties. They will
be holding on to those for anywhere from five to ten years. They do think that they are
good candidates for redevelopment and given their opportunities to access some
resources by the end of the year they thought it would be an opportunity they could not
pass up. They would like to run through each of the sites and answer any questions
about the properties.
Mr. Fernelius stated that the Erickson site on Central Avenue just north of the racquet
club is a little over 66,000 square feet in size. The Ziebart building is at the comer of
East Moore Lake Drive and Central Avenue. This site is to the north of it between the
Advance companies. It is zoned CRA, general business zoning classification. It was
appraised for $166,000 or $2.50 per square foot. The owner has accepted that for the
sales price.
Mr. Femelius stated that second site, owned by Douglas Petty, is 32,000 square feet. It
is zoned M -1, light industrial. It was appraised at $90,800, which is $2.83 per square
foot.
Mr. Femelius stated the third site is the Nedegaard property located south of 1 -694
along the north side. This is zoned C -2, which is a general commercial zoning
classification. It is 15,600 square feet appraised for $31,200. The owner agreed to sell
for $32,000.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBE , 1999 PAGE 13
Mr. Femelius stated the fourth site along Old Central is the Carlson property, at the
corner of Mississippi Street and Central Avenue. This is also zoned C -1, and it was
appraised at $104,000 at $2.50 per square foot.
Mr. Femelius stated they have not done any kind of environmental or geo- technical
testing on the properties. They wanted to do that before they close. They structured
the escrow and purchase agreements to allow them to conduct the testing in advance of
closing and if they find something they have the option of canceling the agreement and
back out or close on the property. They want to have some assurances they have a
developable site. They will be able to do that in the first couple of months next year.
Mr. Fernelius stated that it is staffs recommendation to approve escrow and sales
agreements for each of the four sites.
Ms. Dacy stated that the resolution Mr. Casserly referred to earlier authorizes the HRA
to expedite the sale and purchase agreements and escrow agreements in Exhibit A
except for 630 Ely Street. They would like a motion to approve the resolution and
Exhibit A if that is what the HRA so desires.
Ms. Schnabel asked why they would want to purchase a landlocked piece of land as in
the Nedegaard property.
Ms. Dacy stated that according to the old plat, there is a former piece of right -of -way
right under it for 1 -694 and for 55th Avenue. It is just a gravel driveway. They purposes
for this site is to attach it to the adjacent apartments and the parking lots to the west and
to the south, or potential for some type of future redevelopment with the billboard
company's lot just to the east of it. It will be a hard site to develop. It is a way to
provide flexibility to the HRA for potential multi - family development or embark on
apartment rehab. The adjacent owners may have some interest in this.
Ms. Schnabel asked how the non - conforming use billboard becomes conforming or how
it gets removed.
Ms. Dacy stated that it is non - conforming, because it is in a C -2 district and the sign
code states that billboards have to be in C -3 or industrial districts. It can become
conforming if they rezone that site to C -3 or only industrial and that is very unlikely.
Prior to the recent session of the legislature would be for the City to adopt an
amortization ordinance to advertise non - conforming billboards for some prescribed time
to get the money out of it.
Mr. Bums stated that the legislature revocated the cement plan in St. Louis Park that
prompted the revocation of the amortization rights. St. Paul had the referendum for the
billboards.
Ms. Dacy stated that billboards along the freeway are very controversial.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER 2z, 1999 PAGE 14
Ms. Schnabel stated that if it sits on a lot that has value, the issue should be addressed
to try to get it removed.
Ms. Dacy stated that the billboard owner a number of years ago suggested relocating
the billboard to this site to do what the City needed to do to redevelop the site, but that
would require a special use permit and a variance. This might be an option for the
future if they were to require this piece.
Ms. Schnabel stated that on the Central Avenue site, the Petty and the Erickson sites
on the west side seem to require a lot of soil correction.
Mr. Femelius stated that they have received information that there are soil problems out
there and that is what they want to explore.
Mr. Commers stated that they had soil problems with the Leahy property when it was
developed when they were doing the highway and he imagines this would be the same
issue. He has some of the same concerns as Ms. Schnabel. The other parcels along
Central Avenue will have some development spurned by Medtronic and will be well
advised to acquire. He does have reservations about the Nedegaard property. He did
not think of the acquisition or the removal of the sign which is extremely expensive and
he does not see them in a position to pursue that. It is landlocked, and the alley being
vacated which runs all the way down the block, and it seems unlikely that anyone would
put a street right there.
Mr. Burns asked Ms. Dacy if the assumption that the area north of Rice Creek Road
could be move -up type housing? Is there any thought in the Comprehensive Plan to
make it all residential up to Mississippi Street?
Ms. Dacy stated that the residential uses may be appropriate on the east side of Central
and on the west side there may be some type of office or smaller retail, but non -
automotive types of uses.
Ms. Schnabel stated that she has reservations about the Nedegaard property. She
understands why they should think about a piece of property like that, but she feels it
has too many things going against it at the moment. The other properties are more
developable in the near future than the Nedegaard property. Her preference would be
to drop the Nedegaard property at this point. Down on University Avenue, just south of
1 -694, the property between the Amoco Station has some activity.
Ms. Dacy stated that Mr. Bona and his brother are going to build an automotive repair
facility and they just received Council approval in October.
Mr. Commers asked if the HRA owns the house at the end of Councilmember Billings
block.
Mr. Fernelius stated that they do own it now and the parcel will be taken down
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER.-22,1999 PAGE 15
Mr. Commers stated he agrees that they should approve the Nedegaard parcel.
Ms. Gabel stated that except for the location, it could be a good price, but it is
landlocked and how long would it take to use it. She feels they should use the other
three for sure.
Ms. Schnabel stated that the issue should be explored with the Nedegaard property, but
you cannot do anything with it right now.
Ms. Dacy stated that the first one on Exhibit A is Michael and Barbara Larson, the
Werner's Furniture item. Douglas Petty is included, Sentry Real Estate is the duplex at
340 353 57th Place, and the Nedegaard Construction would be deleted. Daniel Erickson
property on Central would be included, Carlson property, Patricia Melich at 6175 River
Road, and the Schunemans on 571 Lafayette. What is not in here is 630 Ely Street
because they close before the end of the year, and the Nedegaard piece was not
included.
MOTION by Ms. Schnabel, seconded by Ms. Gabel, to approve acquisition of the
Erickson property, Doug Petty property, and the Carlson property, and adopt
Resolution HRA 17 -1999, Determining the Necessity for the Acquisition of Certain
Properties and Authorizing Execution and Delivery of Sale and Purchase Agreements
and Escrow Agreements Relating Thereto with Exhibit A attached containing the legal
descriptions of the properties.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
6. RESOLUTION AUTHORIZING PREPAYMENT OF HOUSING LOAN TO THE
CITY OF FRIDLEY.
Mr. Commers stated that this item was pretty simple regarding any excess funds to be
used to pay down any obligation of the note of the money that has been borrowed from
the City to help with their housing programs.
MOTION by Ms. Gabel, seconded by Ms. Schnabel, to adopt the Resolution HRA 18-
1999, Authorizing Prepayment of Housing Loan to the City of Fridley.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
7. RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF AN ESCROW
AGREEMENT BY AND AMONG THE HOUSING AND REDEVELOPMENT
AUTHROITY INAND FOR THE CITY OF FRIDLEY, MINNESOTA, FRIDLEY
MAIN L.L.C. AND AN ESCROW AGENT NAMED THERIN:
a,
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER 1999 PAGE 16
Ms. Dacy stated that this is one more resolution that refers to the tax increment
financing assistance that the HRA approved at the October meeting to provide soil
correction assistance for the Peterson five acre site on the west side of Main Street for
$250,000. They have formed a partnership called Fridley Main, L.L.C. They have not
executed the development agreement as of yet, and they are trying to set a closing date
prior to the end of this year. If this cannot be accomplished, they are suggesting that
you approve this Resolution which permits the City to place $250,000 into an escrow
agreement. _
Mr. Casserly stated that they clearly cannot perform the work required by the
agreement. They are just trying to make sure that they allocate the money on a timely
basis. They do not release the funds until they have performed as any developer would
perform.
MOTION by Ms. Schnabel, seconded by Ms. Gabel, to adopt Resolution No. 19 -1999,
Authorizing Execution and Delivery of an Escrow Agreement by and among the Housing
and Redevelopment Authority in and for the City of Fridley, Minnesota, Fridley Main
L.L.C., and an Escrow Agent named Therein.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
INFORMATION ITEMS:
8. "WELCOME TO FRIDLEY" SIGN AT NORTHWEST CORNER OF TH 65 AND
MEDTRONIC PARKWAY:
Mr. Commers stated that he thought they wanted to do something by Medtronic Drive,
but Fridley really starts on the south side of 1 -694.
Ms. Dacy stated that he is correct, but they were thinking that the amenity of Moore
Lake in the background next to the corporate campus would be a nice setting. If there
are concerns, let the City know. Medtronic may have an issue also.
Ms. Schnabel stated that she always thought there was a nice triangle piece of land on
53rd and Central on the east side across the street from the Ground Round in front of
Menards. There are several Oak trees and would make a nice setting. She would urge
the City to consider this site.
Mr. Commers asked if this was the design with the house on it.
Ms. Dacy stated that was correct. It was the Banfill Locke house.
Mr. Burns stated that it came out of the 50th Anniversary Task Force.
Mr. Commers asked why the year the City was established was not on there.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER 1999 PAGE 17
Mr. Bums stated that they were established in 1949, and there was a lot of debate
about a lot of things and that was not agreed upon.
Ms. Schnabel stated that she felt the signs in other communities are very attractive.
Mr. Commers stated that they would have to keep the grounds around the sign kept up
and that is something that should be considered.
Ms. Dacy stated that they would be happy to investigate the Central Avenue sign.
Mr. Commers stated that the sign is a good idea.
9. COMPREHENSIVE PLAN UPDATE:
Ms. Dacy stated that this was a first draft of the Land Use, Housing, and Community
Vision chapters. This is the very beginning of the process. The Planning Commission
will hold its first public hearing on December 15. A draft will be submitted to the
Metropolitan Council by the end of this year. When they are done reviewing it there will
be another public hearing in March or April in the Planning Commission. They intend to
take a second round of changes and drafts back to all of the Commissions again. There
are some issues to be evaluated before adoption in the summer of 2000.
Mr. Commers asked where the settlement language of priority for affordable housing in
Fridley was.
Ms. Dacy stated that the Housing chapter addresses those issues and there are some
policy statements that states that the City will strive to maintain affordable housing.
They meet and exceed Metropolitan Council's criteria. The City Attorney, Mr. Knaak,
reviewed the initial draft of the Housing chapter and he felt it was fine.
Ms. Gabel stated that it was interesting to look at all this and have the data to relate to
planning. She watched the presentation to the City Council that was made by Bill
Morris from Decision Resources and that was real interesting with a lot of useful
information for future planning.
Mr. Commers stated that they will have more opportunity to talk about it as they go
along. Staff should be complimented for all their hard work.
Ms. Dacy thanked Mr. Commers.
OTHER BUSINESS
Mr. Bums stated that they are in the process of trying to put together another Council/
Commission survey. If the HRA has anything that they would like to test in the survey,
he would be happy to incorporate it.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER,201999 PAGE 18
Mr. Commers stated that maybe he could refresh his recollection of what was in the
survey previously.
Mr. Burns stated that special impact studies were included for the Medtronic project,
apartment rehab was included also. There was a question about additional money for
the single family rehab also. This is the first planning event that occurs in the new year.
They are planning for the next year but it starts people thinking about the kinds of issues
on the horizon. They get staff involved in trying to identify the issues they think are out
there so they can begin talking to the Commission members about the ideas. This kind
of grows out of the various surveys they are doing.
Mr. Commers stated that he feels this should be put on the agenda for discussion if they
have any ideas.
Ms. Dacy stated they could do that.
Ms. Gabel asked if the duplex could be moved.
Mr. Fernelius stated that early on in the Gateway East project, that was a question they
had. They did have Ernst Moving Company take a look at it and they said it could be
moved. The larger issue is where they could move it.
Ms. Gabel asked if they could sell it to somebody else who could move it.
Mr. Fernelius stated that they could look at that as an option.
ADJOURNMENT
MOTION by Ms. Schnabel, seconded by Ms. Gabel, to adjourn the meeting.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED AND THE DECEMBER 9, 1999, MEETING OF THE
HOUSING AND REDEVELOPMENT AUTHORITY ADJOURNED AT 9:35 P.M.
Respectfully submitted,
Sign L. Jo son CO
Recording Secretary
t
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum
CIWOF
FMEX"
Memo To: William W. Bums, Executive Director
From: Barbara Dacy, Community Development Director
Date: January 28, 2000
Subject: Resolution Authorizing Amendment to By Laws
I know it is hard to believe, but the Authority's By -Laws need to be amended once again.
The purpose of the change is in part to satisfy an issue that the County Title Examiner
has with the title pertaining to the Medtronic property. In addition, the By -Laws have
been updated to reflect an amendment which was made by the Authority in April, 1999.
The first issue deals with the actual name of the Authority. The By -Laws state the
"Fridley Housing and Redevelopment Authority". Deeds and other legal documents
have typically been prepared as the "Fridley Housing and Redevelopment Authority, in
and for the City of Fridley ", consistent with State Statute. The examiner has noted that
the memorials on the certificates for the Medtronic site show this name which is in
conflict with the official wording of the Authority's By -Laws. Staff also found the enabling
resolution from 1965 but it too states "Fridley Housing and Redevelopment Authority". It
seems incredulous that this is an issue, but in order to meet the letter of the law, an
amendment is necessary.
The second issue pertains to the "Assistant Executive Director". In April of last year, the
Authority passed a motion to authorize the Community Development Director as the
"Assistant Executive Directors in order to enable signature of documents, especially in
the absence of the Executive Director. In practice, the Executive Director is always the
first priority for signature, and since April, Bill Bums has always been available. As you
know, the Chairperson is also required to sign all documents on behalf of the Authority.
Finally, the By -Laws are amended to delete reference to the "seal" of the Authority.
RECOMMENDATION
Staff recommends the Authority approve the attached Resolution authorizing
amendments to the By -Laws.
M -00 -07
1
BY -LAWS OF THE
BI E HOUSING AND REDEVELOPMENT AUTHORITY
FRIDLEY, MINNESOTA
ARTICLE I: THE AUTHORITY
Section 1: Name of the Authority
The name of the Authority shall be the €r;dl= Housing and
Redevelopment Authority- in and for the City of Fridley, Minnesota.
Section 2: Powers
The Authority shall be a public body corporate and politic and shall
have all the powers necessary or convenient to cant' out the
purpose of Minnesota Statutes 462.415 to 462.711.
Section 3: Membership
The Authority shall consist of five commissioners who shall be
residents of the City of Fridley.
Section 4: Appointment, Approval
The Commissioners shall be appointed by the Mayor with approval
by the City Council of Fridley, Minnesota.
Section 5: Term
The Commissioners shall be initially appointed for terms of one,
two, three, four, and five years respectively. Thereafter, all
Commissioners shall be appointed for five -year terms.
Section 6: Vacanc
Each vacancy in an unexpired term shall be filled in the same
manner in which the original appointment was made.
Section 7. Certificate of Appointment
The Commissioners shall hold office until their successors have
been appointed and qualified. A certificate of appointment of each
Commissioner shall be filed with the City Clerk and a certified copy
thereof with the State Housing Commission.
Section 8. Compensation
The Commissioners shall be entitled to receive necessary
expenses, including traveling expenses, in the performance of their
duties. The Commissioners may be compensated at a rate of up to
$25.00 per meeting in an aggregate amount not to exceed
$1,500.00 per year.
ARTICLE II: OFFICERS
Section 1: Officers
The officers of the Authority shall be a Chairperson and a Vice -
Chairperson /Secretary.
Section 2. Chairperson
The Chairperson shall preside at all meetings of the Authority at
which he /she is present.
Section 3. Vice - Chairperson /Secreta
The Vice - Chairperson /Secretary shall perform the duties of the
Chairperson in his /her absence or incapacity, and /or because of
resignation or death of the Chairperson until a new Chairperson is
elected.
Section 4. Terms of Officers
All officers of the Authority shall be elected annually by the
Authority and shall serve for the term of one year or until their
successors are elected and qualified.
Section 5. Vacancies
Should an office become vacant, the Authority shall elect a
successor from its membership at a regular meeting, and such
election shall be for the unexpired term of said office.
ARTICLE III: STAFF SERVICES
Section 1. Executive Director
An Executive Director shall be appointed by the Authority, at such
compensation, for such term and with such duties as the Authority
shall determine by resolution. The Executive Director shall
perform, or have performed, such activities as the Authority shall
from time to time reasonably request, including the responsibility for
the care and custody of all funds of the Authority and for the deposit
thereof in the name of the Authority in such bank or banks as the
Authority from time to time shall designate, for the keeping of
regular books of accounts showing receipts and expenditures, for
budget and budgeting activities, for keeping the records of the
Authority, , and to acce t
the service of process upon the Authority.
Section 2. Assistant Executive Director
An Assistant Executive Director shall be appointed by the
Authority, at such compensation for such term and with such
duties as the Authority shall determine by resolution. In the
absence or incapacity of the Executive Director, the Assistant
Executive Director shall perform the duties of the Executive
Director.
Section =3. Additional Personnel
The Authority may from time to time use such personnel and use
the services of local public bodies as it deems necessary to
exercise its powers, duties, and functions as prescribed by law.
ARTICLE IV: EXECUTION OF INTRUMENTS
Section 1: Execution of Instruments
All deeds, contracts, promissory notes, warrants, and other
instruments, including checks issued by the Authority, shall be
executed by the Executive Director only after authorization of such
transactions by the Authority by resolution or other approved action.
ARTICLE V. MEETINGS
Section 1. Regular Meetings
Regular meetings of the Authority shall be set by the Authority
annually and shall remain for that period of time unless changed by
majority vote of the Authority at a regular scheduled meeting.
Section 2. Special Meetinas
Special meetings of the Authority may be held at any time on at
least a 24 -hour written call of the Chairperson or any two members
of the Authority. Notice shall be in writing and state the time, place,
and purpose of the meeting. Upon unanimous consent of all
members, any of the provisions of this section may be waived.
Section 3. Annual Meetin
An annual meeting will be held the first Thursday of June at 7:30
p.m. for the purpose of electing officers of the Authority. The date
of the annual meeting may be postponed to a date on or before the
first Thursday of July upon a majority vote of the Commissioners in
office at any time at a regular meeting of the Authority.
Section 4. Quorum
The powers of the Authority shall be vested in the Commissioners
thereof in office at any one time, a majority of whom shall constitute
a quorum for all purposes, but lessor number may adjourn a
meeting from time to time until a quorum is obtained.
Section 5. Manner of Votin
The Chairperson and all Commissioners in attendance at every
meeting of the Authority shall be entitled to vote. All motions and
resolutions shall require an affirmative vote of a majority of the
members of the Authority. A roll call on any question coming
before the Authority must be taken upon the demand of any one or
more of the Commissioners.
Section 6. Parliamentary Procedures
Parliamentary procedures at meetings of the Authority shall be
governed by the last edition of Robert's Rules of Order.
ARTICLE VI: FISCAL YEAR
Section 1. Fiscal Year
The fiscal year of the Authority shall be from January 1 to
December 31 of each year.
Section 2. Annual Report
The Executive Director shall prepare an annual report to the
Authority of Authority activities on or before the last day of February
for the proceeding fiscal year.
Section 3. Budget
The Executive Director shall prepare an annual budget for Authority
approval prior to December 31 for the next fiscal year. This budget
shall lay out anticipated revenue and expenditures of the Authority
for the next fiscal year.
ARTICLE VII: AMENDMENTS
Section 1: Amendments
The By -Laws of the Authority shall be amended only with the
approval of at least a majority of the Commissioners in office at that
time.
Chairperson
Vice - Chairperson
Amended: jURe 3, 4 994 February , 2000
f W!'D \ "t' \ V 71 '! ; F!'R \ N? \ 11 l-_* � ' ' `'2.1:)Ol-
r.
HRA RESOLUTION NO.
A RESOLUTION AMENDING THE BY -LAWS OF THE AUTHORITY
BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the
Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the
"Authority "), as follows:
Section 1. Recitals.
1.01. It has been proposed that the Authority amend its by -laws (the "By- laws ") to
provide for the more efficient operation of the Authority.
1.02. Article VII, Section 1 of the By -laws provides that the By -laws shall be amended
only with the approval of at least a majority of the Commissioners in office at
that time.
1.03. The Authority hereby determines that it is necessary and in the best interests of
the Authority amend the By -laws at this time to provide for the more efficient
operation of the Authority.
Section 2. Findings.
2.01. The Authority hereby finds that the proposed amendments to the By -laws will
result in providing for the more efficient operation of the Authority.
Section 3. Amendments to the By -laws.
3.01. Article I, Section 1 of the By -laws is hereby amended to read as follows:
Name of the Authori ty.
The name of the Authority shall be "Housing and Redevelopment
Authority in and for the City of Fridley, Minnesota."
3.02. Article III, Section 1 of the By -laws is hereby amended by deleting the
following:
", keeping of the seal of the Authority"
3.03. Article III, Section 2 of the By -laws is hereby renumbered as Article III, Section
3.
Page 2 — Resolution No.
3.04. Article III, of the By -laws is hereby amended to insert the following at Section 2:
Assistant Executive Director
An Assistant Executive Director shall be appointed by the Authority, at
such compensation, for such term and with such duties as the Authority
shall determine by resolution. In the absence or incapacity of the
Executive Director, the Assistant Executive Director shall perform the
duties of the Executive Director.
PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF FRIDLEY, MINNESOTA THIS DAY OF
FEBRUARY, 2000.
LAWRENCE R. COMMERS - CHAIRPERSON
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
CERTIFICATION
I, William W. Burns, Executive Director of the Housing and Redevelopment Authority
in and for the City of Fridley, Minnesota, hereby certify that the foregoing is a true and
correct copy of Resolution No. passed by the Authority on the day
of February, 2000.
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
G: \WPDATA \F \FRIDLEY \38 \D0C \HRA RES AMENDING BYLAWS.DOC
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum f
Date: January 28, 2000
To: William W. Bums, Executive Director
From: Barbara Dacy, Community Development Director
Subject: Approve Contract with Krass Monroe P.A.
PROPOSAL
Krass Monroe P.A. is proposing a two-year contract for continuing legal assistance with tax
increment financing and redevelopment projects. The previous contract was also for two years
and contained a two part hourly rate. In 1998, the hourly rate was $110 /hour. In 1999, the
hourly rate was $115 /hour. The proposed contract contains the same approach with an hourly
rate of $120 /hour in 2000 and an increase in 2001 to $125 /hour.
Last year was unprecedented in the Authority's history for the amount of work concluded. A
synopsis of the projects is attached. In 1999, the Authority paid Krass Monroe $243,679.80.
About 48% of this amount was related to the Medtronic project ($118,117.92). These expenses
were charged against TIF #6. Only $28,566 was charged to the General Fund, well below the
1999 budget allocation of $50,000. The remaining amounts were charged to appropriate tax
increment districts.
In 1998, the Authority expended $89,490 to Krass Monroe, but about 62% ($55,780) was
related to the Lake Pointe site. Remember in that year, the Authority was involved with both the
MEPC /Duke development agreement and negotiating the letter of intent with Medtronic.
It should also be remembered that 1999 forced the Authority into several acquisitions prior to
two deadlines established by the Legislature (May 1 and December 31). A majority of these
transactions had to be handled at one time, with multiple documents, and required a
tremendous amount of detail work by both City Staff and Krass Monroe.
Grant Femelius and I deal with Jim Casserly and his colleagues on a regular basis. We also
observe them dealing with developers and property owners. We are very impressed with their
ability to represent the Authority in an assertive manner yet respectful to potential developers or
Fridley citizens. In addition, they are responsiveness to our deadlines, and quite simply, offer us
good advice.
RECOMMENDATION
Staff recommends the Authority approve the attached Contract as presented.
M -00 -15
SYNOPSIS OF WORK PROJECTS
1999
1. Medtronic Development Agreements, Special Legislation, and Closings
2. Onan /Murphy Warehouse Development Agreement and Escrow Agreement
3. Waymore Trucking Development Agreement
4. Cash n Pawn Agreement and Escrow Agreement
5. Penk and Peterson Development and Escrow Agreement
6. Duplex Purchase and Escrow Agreement
7. Three vacant parcel acquisitions on Central Avenue (multiple documents)
8. Werner's Furniture acquisition
9. Linn Project
10. Minnesota Commercial Railway
11. Housing Revolving Loan analysis
12. Banfill Crossing (Noah's Ark)
13. Redevelopment Plan Amendment
14. Pooling Issue analysis
15. General assistance on TIF issues
KRASS MONROE. P.A.
A T T O R N E Y S A T L A W
■ James R. Casserly
Email james4krassmonroe.com
www.krassmonroe.com
Direct Dial (612) 885 -1296
January 24, 2000
City of Fridley
6234 University Avenue NE
Fridley, MN 55432
Attn: William Burns, City Manager
Attn: Barb Dacy, Community Development Director
Re: Krass Monroe Contract
Dear Bill and Barb:
It is that time of year again where we are anticipating entering into another contract with the
Fridley HRA to provide them with the services they need in the areas of law and finance. It is
undoubtedly true that we do not tell you often enough how much we appreciate the exciting and
challenging work that results from all of your efforts and activities. You take on projects and
activities that many cities simply dream about. From a very personal perspective, it is your
challenges that keep me excited about the practice of law in this very complex area.
I think it is reasonable to assume that over the next two years the quantity of our work will be
greatly diminished. Because of the Medtronic opportunities and the deadlines imposed by the
1999 legislature we had substantially more work than we had anticipated. In the month of
December alone there were seven people in our office working on Fridley matters at one time or
another.
As you might expect, our costs have certainly increased. We have a highly trained and
experienced staff for which we must pay very competitive salaries. As a result, we are
requesting that our hourly rate be increased $5.00 per hour to $120.00 per hour in the year 2000
and an additional $5.00 per hour to $125.00 per hour in the year 2001. This would be slightly in
excess of a 4% increase in each year which is not substantially more than the rate of inflation in
the last year or two. While it is not particularly germane to our request for an increase, the
municipal rate for all of our current cities is already at $125.00 per hour. Our new municipal
clients will be at $135.00 per hour. I should point out that my own compensation from Krass
Monroe will not be increasing as a result of these rates. These requested increases will offset our
increased operating expenses.
Suite 1100 Southpoint Office Center
1650 West 82nd Street, Minneapolis. Minnesota 55431- 1447
Telephone 612.885.5999 Facsimile 612.885.5969
wwwArassmonroe.com
Another topic which does not get raised often enough is the interaction of your staff and our
office. Without exception, everyone in our shop likes to work with your staff. They are
professional, organized, goal oriented and best of all, simply nice people.
We look forward to the opportunity of continuing to serve you over the next two years. Thanks
again.
Very truly yours,
KRASS MONROE, P.A.
Jame � Casserly
Atto e at Law
& WPDATATIFRIDLEY\BURNS DACY LTR.DOC
AGREEMENT FOR LEGAL SERVICES
BETWEEN THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY (HRA)
AND KRASS MONROE, P.A.
1. Term of Agreement: January 1, 2000, through December 31, 2001
2. Duties and Responsibilities of Krass Monroe, P.A.:
A. Analyze subsidies requested by developers or offered by the City, including:
L Tax increment analysis;
ii. Internal rate of return analysis; and
iii. Pro forma cash flow and balance sheet analysis.
B. Assist with any tax increment work, including the following:
L Modify the redevelopment project area;
ii. Establish the tax increment district and the tax increment finance plan, including
impact analyses;
iii. Prepare resolutions adopting the above;
iv. Prepare notice of public hearings;
v. Attend public hearings to provide support and background;
vi. Prepare letters and notices for the School and County Boards; and
vii. Prepare letters requesting certifications and filing documents with the appropriate
jurisdictions.
C. Assist in the negotiation and preparation of contracts for private development,
assessment agreements, special assessment agreements, interest rate reduction
programs, revenue notes, and other contractual arrangement between the Fridley HRA
and the developer.
D. Assist with any debt insurance including recommendations as to size, maturity, form,
and sale of debt as they relate to the project analysis.
E. Assist with policy analysis and with the review and updating of tax increment districts.
F. Assist with the development of housing programs and prepare the appropriate
documents and resolutions.
3. Compensation:
A. Compensation shall be at the hourly rate of One Hundred Twenty Dollars ($120.00) from
January 1, 2000, through December 31, 2000, and One Hundred Twenty -Five Dollars
($125.00) from January 1, 2001, through December 31, 2001.
B. Krass Monroe, P.A., shall submit an itemized statement that clearly accounts for the
hours of service provided by Krass Monroe.
4, Other Reimbursements:
A. Krass Monroe, P.A., shall be reimbursed for long distance calls, reproduction and
delivery services, as well as any filing fees that it incurs on behalf of the Fridley HRA. All
other expenses will be included as part of the per hour compensation rate.
Agreed and entered into this 1 st day of January, 2000.
KRASS MONROE, P.A.
By:
FRIDLEY HOUSING AND
REDEVELOPMENT AUTHORITY
By:
By:
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum CM
MEM
DATE: January 28, 2000
TO: William W. Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Authorize Application to MHFA for First Time Homebuyer's Program
The Minnesota Housing Finance Agency (MHFA) is again soliciting applications from
cities throughout the state for the Minnesota Cities Participation Program. This program
provides low interest rate mortgages to low and moderate income families who want to
purchase their first home. A fact sheet on the program is attached for your reference.
The MHFA acts on behalf of participating cities by selling mortgage revenue bonds
which provide the underlying financing. Private lenders then process the mortgage
loans and sell them to MHFA. As the loans are made the funds are drawn down from
each city's allocation. The HRA's primary role is to market the program to prospective
first -time buyers. The real advantage of the MCPP, is that MHFA covers all of the bond
issuance costs and only charges a small fee ($20 per $100,000 of mortgage allocation)
to each participating city.
This year the MHFA expects that between $37 and $45 million will be available in the
mortgage bond pool. The actual amount will depend on how many of the larger cities
(i.e. Minneapolis, St. Paul, Duluth, etc.) decide to issue their own bonds, which are
subtracted from the same pool. MHFA will sell bonds based on the remaining amount
of bond authority. The amount allocated to each city under the MHFA program is based
on a population formula.
The Fridley HRA has participated in the MCPP since 1993 and during that time period a
total of 51 loans for $3,913,254 have been made. On average Fridley has receives
about $781,000 in funding each year. Of this amount, approximately $537,000 has
been committed on average.
3
HRA MEMOS (FEB. 2000 MTG.).doc
MCPP Memo
January 28, 2000
Page 2
In 2000, however, MHFA is encouraging more cities to join together and submit multi -
city proposals. If successful, a joint proposal could secure a larger pot of money than if
each city received its own allocation.
One downside to this approach is that the money could not be designated for any
particular city. Instead the money would be available county -wide on a first -come,
first -serve basis. In reality, those cities with moderately priced housing and stronger
marketing efforts will use more of the funds. Staff has already had preliminary
discussions with Columbia Heights and Anoka County about a joint proposal. The City
of Anoka, which historically has applied on its own, will also be contacted about a joint
proposal.
At this point we are still trying to clarify the feasibility of a county -wide proposal. It is
unclear whether all three of the cities (Fridley, Columbia Heights and Anoka plus the
County) have to join in a proposal, or if a lesser combination is also acceptable. In
either case we are requesting authorization from the HRA to submit an application to
the MHFA.
Recommendation
Staff recommends that the HRA authorize preparation of an application to the 2000
Minnesota Cities Participation Program.
M -00 -08
HRA MEMOS (FEB. 2000 MTG.).doc
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If the property to be
mortgaged is located in:
New or Existing
Homes
11 -County Twin Cities Area'
$121,842'
Benton and Stearns Counties
$82,975
Blue Earth County
$83,251
Clay County
$91,168
Goodhue County
$90,375
Houston County
$73,100
McLeod County
$90,132
Nicollet County
$96,712
Olmsted County
$94,034
Rice County
$101,730
Steele County
$88,193
Winona County
$81,946
Balance of State
$77,540
'Anoka. Carver, Chisago, Dakota, Hennepin, hand, Ramsey. Scott, Sherburne,
Washington and Wright Counties.
HAF Income Limits
You may qualify for the Homeownership Assistance
Fund (HAF) if your "MHFA Eligibility Income"'
does not exceed the amount listed:
I "MHFA Eligibility Income" means the gross annual projected income
of all residents living in a housing unit, from all sources and before
taxes and withholding, regardless of whether that income is used to
qualify for that loan.
2 New construction in the Twin Cities Area is available only in Chisago,
Isand, Sherburne and Wright counties.
This material will be made available in alternative format upon request.
®Minnesota Housing
Finance Agency LENDER
@1999 Minnesota Housing Finance Agency Rarofonnn papn:^i 12'99
0710
+_ a t
YOU CAN
own your own
home!
Current Interest Rate
VIP
Call a Participating Lender or the Minnesota Housing
Finance Agency (MHFA) at (651) 296 -8215 in the
Twin Cities metro area or 1 (800) 710 -8871 outside
the Twin Cities for current fund availability and
interest rate information.
Income Limits
To qualify for the Minnesota Mortgage Program your
MHFA Eligibility Income' must not exceed:
Persons
Household
MAXIMUM MHFA ELIGIBILITY
COUNTY
INCOME' FOR HAF
Balance
ofSrato
Entry Cost Assistance and/or
533,450
Monthly Payment Assistance
1 I- Counry Twin Cities Area
$30,128
Anoka, Carver, Chisago, Dakota,
538,250
Hennepin, Isand, Ramsey, Scott,
S38,000
Sherburne, Washington and
3 persons
Wright Counties
S39.300
Olmsted
$38,000
All Other Counties
$32,500
I "MHFA Eligibility Income" means the gross annual projected income
of all residents living in a housing unit, from all sources and before
taxes and withholding, regardless of whether that income is used to
qualify for that loan.
2 New construction in the Twin Cities Area is available only in Chisago,
Isand, Sherburne and Wright counties.
This material will be made available in alternative format upon request.
®Minnesota Housing
Finance Agency LENDER
@1999 Minnesota Housing Finance Agency Rarofonnn papn:^i 12'99
0710
+_ a t
YOU CAN
own your own
home!
Current Interest Rate
VIP
Call a Participating Lender or the Minnesota Housing
Finance Agency (MHFA) at (651) 296 -8215 in the
Twin Cities metro area or 1 (800) 710 -8871 outside
the Twin Cities for current fund availability and
interest rate information.
Income Limits
To qualify for the Minnesota Mortgage Program your
MHFA Eligibility Income' must not exceed:
Persons
Household
11 County Twin
Cities Merm Area
Olmsted
County
Rict
County
Balance
ofSrato
I Person
533,450
S30,600
530,750
$30,128
2 Persons
538,250
534,950
535,150
534,432
3 persons
543,000
S39.300
$39,550
$38,736
4 Persons
547,800
543,700
543.900
843.040
5 Persons
551,600
547,150
S47,450
S46,483
6 Persons
555,450
550,650
550,950
$49,926
7 Persons
559,250
$54,150
$54,450
$53.370
8 Persons
563.100
557,650
557,950
$56,813
HRA RESOLUTION NO. -2000
RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES FOR
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF FRIDLEY
I, Richard D. Pribyl, do hereby certify that I am Finance Director - Treasurer of the Housing and
Redevelopment Authority in and for the City of Fridley, a corporation organized under the laws of the State
of Minnesota. I further certify that at a meeting of said corporation duly and properly called and held on the
3rd day of February, 2000, the following resolution was passed; that a quorum was present at said meeting;
and that said resolution is set forth in the minutes of meeting and has not been rescinded or modified.
IT IS HEREBY RESOLVED, that Norwest Banks is hereby designated as a depository for the funds of this
corporation.
IT IS FURTHER RESOLVED, that checks, drafts or other withdrawal orders issued against the funds of
this corporation on deposit with said bank shall be signed by two of the following:
Richard D. Pribyl, Finance Director - Treasurer
Alan D. Folie, Assistant Finance Director
William W. Burns, Executive Director
and that said bank is hereby fully authorized to pay and charge to the account of this corporation any
checks, drafts, or other withdrawal orders.
BE IT FURTHER RESOLVED, that Norwest Banks as a designated depository of the corporation is hereby
requested, authorized and directed to honor checks, drafts or other orders for the payment of money drawn
in this corporation's name, including those drawn to the individual order of any person or persons whose
name or names appear thereon as signer or signers thereof, when bearing or purporting to bear the facsimile
signatures of two of the following:
Richard D. Pribyl, Finance Director - Treasurer
Alan D. Folie, Assistant Finance Director
William W. Burns, Executive Director
and Norwest Banks shall be entitled to honor and to charge this corporation for all such checks, drafts, or
other orders, regardless of by whom or by what means the facsimile signature or signatures thereon may
have been affixed thereto, if such facsimile signature or signatures resemble the facsimile specimens duly
certified to or filed with Norwest Banks by the City Clerk or other officer of his corporation.
BE IT FURTHER RESOLVED, that any and all resolutions heretofore adopted by the Housing and
Redevelopment Authority of the corporation and certified to as governing the operation of this corporation's
account(s) with it, be and are hereby continued in full force and effect, except as the same may be
supplemented or modified by the foregoing part of this resolution.
Page 2 - Resolution No. -2000
BE IT FURTHER RESOLVED, that all transactions, if any relating to deposits, withdrawals, re- discounts
and borrowings by or on behalf of this corporation with said bank prior to the adoption of this resolution be,
and the same hereby are, in all things ratified, approved, and confirmed.
BE IT FURTHER RESOLVED, that any bank or savings and loan may be used as depositories for
investment purposes so long as the investments comply with authorized investments as set forth in
Minnesota Statutes.
BE IT FURTHER RESOLVED, that the signatures of two of the following named City employees are
required for withdrawal of City investment funds from savings and loan associations:
Richard D. Pribyl, Finance Director - Treasurer
Alan D. Folie, Assistant Finance Director
William W. Burns, Executive Director
BE IT FURTHER RESOLVED, that any brokerage firm may be used as a vendor for investment purposes
so long as the investments comply with the authorized investments as set forth in Minnesota Statutes.
I further certify that the Council of this corporation has, and at the time of adoption of said resolution had,
full power and lawful authority to adopt the foregoing resolutions and to confer the powers therein granted
to the persons named who have full power and lawful authority to exercise the same.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELPMENT AUTHORITY IN AND FOR
THE CITY OF FRIDLEY THIS 3RD DAY OF FEBRUARY, 2000.
LAWRENCE R. COMMERS, CHAIRPERSON
ATTEST:
WILLIAM W. BURNS, EXECUTIVE DIRECTOR
5
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000000000000000000000000
HOUSING & REDEVELOPMENT r
AUTHORITY
Memorandum C
FMDLH
DATE: January 28, 2000
TO: William W. Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Update on Patternbook for Housing Replacement Program
After nearly a year in the works, we are extremely pleased to present the Patternbook
for New Homes, a design guide for homes built through the HRA's Housing
Replacement Program. The book was authorized by the HRA to create more useful
guidelines for new single family homes built on our in -fill sites.
Attached is the final version of the book which will be printed and distributed to builders
and individuals who want to purchase an HRA in -fill site and construct a new home.
The purpose of the book is to provide design guidelines in a visual format that will help
buyers understand the importance of good house design. The book even includes three
sample plans that buyers can use or embellish to fit their particular needs, and portrays
three new home plan designs based on the most common lot widths of 60', 75' and
100.
The goal is not so much to prescribe every detail of a new in -fill home, but rather to
encourage designs that are more sensitive to the surrounding neighborhood and
architecture. Hopefully, this guidebook will serve as a good starting point for
prospective buyers to formulate their own ideas. In addition, the book will help the
HRA evaluate prospective house designs.
Recommendation
Staff recommends that the HRA authorize staff to expend $2,500 for printing 100 copies
of the book. The book will be provided to prospective buyers for the HRA's lots and the
cost will be re- couped via the non - refundable, $500 Participation Fee that is charged to
reserve a site. There are several typos in the book, which need to be corrected and
any feedback from the HRA is also welcome.
M -00 -09
HRA MEMOS (FEB. 2000 MTG.).dm 6
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum CW
FMDL%
DATE: January 28, 2000
TO: William W. Bums, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Femelius, Housing Coordinator
SUBJECT: Consider Interest Rate Write Down Program
Introduction
As you know, the Center for Energy and Environment (now known as Community Revitalization
Resources) has been administering our housing rehabilitation programs since 1996. Recently
CRR's Manager, Dave King contacted staff about a proposal he is preparing to MHFA for a
special program to serve the 15 metro cities who participated in the Cape Cods & Ramblers: A
Remodeling Guide for Post World War II Housing guide book. A copy of Dave King's proposal is
attached. He will also be in attendance at the HRA meeting to answer and questions.
Overview of Loan Program
The purpose of the CRR's special program is to encourage homeowners to make the
improvements described in the book, by offering attractive financing. As you know the larger
goal of the plan book is to help retain households in the older suburban communities and to
adapt the housing stock for today's needs. CRR's intent is to offer a 6% interest rate which is
below market and is a good incentive to those owners who might be thinking of improving their
homes. The role of each participating city is to help subsidize the interest rate, but only for
loans made within their own community.
The loans will be made to families with incomes up to $73,140 (115% of the metro median)
who have good credit and own a home built before 1970. The maximum loan will be $35,000.
The underlying funding for the loan will come from MHFA, but the interest subsidy will be
shared equally by MHFA and the participating city. CRR will act as the lender and process the
loans.
How the Interest Subsidy Works
When CEE originates a loan under this program, they will make the loan directly to the
borrower and then sell the note to MHFA. The loan will be issued at the 6% rate, however
MHFA's cost of funds is 8 %. To achieve the 8% rate, MHFA will discount the cost of loan,
meaning they will pay CEE less than the face amount of note. For example, on a $5,000 loan
HM MEMOS (FEB. 2000 MTG.).doc 7
CRR Memo
January 28, 2000
Page 2
the total interest subsidy is $500. In this case, MHFA will buy the loan from CRR at $4,500 and
then split the $500 interest subsidy with the City. The net result is that the City provides a
$250 subsidy on behalf of the borrower. So what does this all mean?
The advantage to this approach is that the City can leverage a significant amount of funds with
a small investment of capital. A $50,000 loan pool could leverage nearly 20 times that sum in
MHFA or roughly $2.2 million (440 loans). This scenario is based on an average loan of $5,000
with a $225 local subsidy. The other advantage is that MHFA pays all of the origination fees
and on -going servicing costs for each loan.
How Does This Dovetail with the 5% Program?
The best analogy to use is that this new program is simply another tool in the toolbox for the
HRA to use in its housing programs. It compliments rather than competes with the HRH's 5%
program, because the HRA does not currently serve households in the $58,000 to $74,000
income range. It also restricts the funds to housing built before 1970, thereby prioritizing older
housing.
To put this new initiative in perspective, since 1993 a total of 393 homes have been improved
for a total of $4,405,200 (all funding sources). Of this number, the HRA has funded 240
revolving loans valued at $3,007,100. The write down program provides a means to leverage
more outside dollars given the HRH's limited resources and competing redevelopment priorities.
Staff believes this proposal is a sound strategy for continuing our aggressive housing programs.
More importantly we are offering residents another opportunity to invest in their homes and
remain in the community.
A similar program has been implemented in St. Louis Park and Anoka and has been very
successful in those communities.
Recommendation
Staff recommends that the HRA authorize CRR to submit a proposal on behalf of the Authority
and commit $50,000 for interest rate write downs in Fridley.
We an accommodate this level of funding in the 2000 housing budget, by reducing the capital
outlay for the Revolving Loan Fund.
M -00 -12
HRA MEMOS (FEB. 2000 MTG.).doc
°01/25/00 10:04 FAX 612 335 2650 CENTER FOR ENERGY & ENVI 9002
Community Revitalization Resources
211 North 1' Street, Suite 455 . Minneapolis, Minnesota 55401 . Phone: (612) 335 -5880 . Fax: (612) 335 -2650
January 24, 2000
Mr. Grant Fernelius
Housing Coordinator
City of Fridley
6431 University Avenue NE
Fridley, MN 55432
Dear Grant.
Community Revitalization Resources, a division of the Center for Energy and Environment,
would like to invite your city to participate in a collaborative effort to offer low - interest financing
to the homeowners of your community. The focus of this endeavor is to offer homeowners
residing in rambler and cape cod style homes an affordable and attractive way to complete value -
added projects similar to those showcased in the Remodeling Planbook for Post -WWII Houses,
co- sponsored by your city.
Community Revitalization Resources proposes to apply to the Minnesota Housing Finance
Agency (MHFA) to gain access to the Community Fix-up Fund for the 15 cities that co-
sponsored the plan book. The Community Fix-up Fund offers home improvement financing of
up to $35,000 at interest rates of 2 -8 %, depending on household income. I have contacted MHFA
staff and have approval to apply for all participating communities under one application. Your
community may already be participating in the Community Fix-up Fund program, however this
application would remain independent of any previous submissions.
This proposal consists of two distinct parts. The first application will request that the Community
Fix-up Fund be offered to owners of rambler or cape cod homes built prior to 1970 with
household incomes less than $73,140 (115% of median). An additional stipulation could also be
added to restrict eligible improvements to value added improvements as identified through the
"This Old House" legislation.
The second part of the proposal is an application to the MHFA Single Family Super RFP this
February. The proposal will request MHFA match the participating cities on a dollar for dollar
basis to assist with the cost of offering a Discount Loan Program. The Discount Loan Program
allows communities to buy down the MHFA interest rate of 8% to 6,5,4,or 3 %. CRR encourages
participating cities to offer a 6% rate. Six percent is very marketable and is the most cost -
effective rate to subsidize. In communities where CRR is able to offer 5 or 6% loans versus the
traditional MHFA interest rates, the participation rate is significantly higher.
Example #1: Assuming a $5,000 loan, the interest subsidy cost to your city to write this loan
down from 8% to 6% will be $225. If your community committed $50,000 to interest subsidy
and MHFA matched your commitment, your city could realize over 440 loans of $5,000 @ 6 %,
providing more than 2.2 million dollars in home improvements for your community.
A division of the Center for Energy and Environment .Equal Opportunity Employer
01/25/00 10:05 FAX 612 335 2650 CENTER FOR ENERGY & ENVI IM003 ,
Example #2: Assuming a $10,000 loan, the interest subsidy cost to your city to write this loan
down from 8% to 6% will be $830. Again, if your community committed $50,000 to interest
subsidy and N41VA matched your commitment, your city could realize over 120 loans of $10,000
@ 6 %, providing more than 1.2 million dollars in home improvements for your community.
As you can see, a relatively small investment can leverage a significant amount of money at very
attractive rates for your community.
I am very confident this proposal will have an excellent chance for funding through the NWA
Super RFP. In fact, CRR previously received funds for very similar purpose for the cities of
Anoka and St. Louis Park. In those proposals, N UA matched the community's contribution for
offering the discount loan program. To date, both program's have been very successful.
Community Revitalization Resources also currently has a project underway to showcase the
potential of a rambler style home. In last February's Super RFP cycle, CRR applied to and
received funds from NWA to acquire a rambler home and rehabilitate the home to one of the
plan specifications identified in the City of Fridley's Rambler Remodeling Handbook which is
very similar to the Remodeling Planbook for Post -loll Houses, CRR has acquired the property
in the City of Fridley and is in the process of remodeling the home. Once the construction is
complete, the home will be used as a model for six months (and a satellite office for CRR) and
then sold to a first -time homebuyer. Residents from your community are encouraged to visit the
model. This project will give interested homeowners an opportunity to see first -hand what the
potential of their home is with the additional option of accessing a low- interest financing package
to complete home improvements.
CRR has extensive experience underwriting NINA single - family and multi - family rental loan
Programs. CRR is consistently one of the top three lenders of NWA products (out of more than
400 statewide). CRR will provide all personnel needed to administer this project successfully and
efficiently.
CRR will be responsible for preparing and submitting the proposal on behalf of the participating
communities.
If you are interested in participating in this proposal or would like to discuss the concept in more
detail, please contact me at (61 Z) 335 -5889. I apologize in advance for the short notice, but I will
need to know your community's level of interest by February 1 ° 2000 in order to prepare the
proposal.
Thank you for your consideration and hope to hear from you soon.
Sin rely,
David King
Director
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum CM
FMN%
Date: January 28, 2000
To: William W. Bums, Executive Director
From: Barbara Dacy, Community Development Director
Subject: Request to Fund Noise Wall Enhancements
Background
MnDOT completed a noise impact analysis on Trunk Highways within incorporated
areas of February 1997. The study was ordered by the Legislature. The segment along
University Avenue between 44h and 53`1 Avenue was identified as one of the noisiest
segments showing decibel levels in excess of state standards. MnDOT approached the
City in October requesting that the City conduct a meeting to determine if a 15 -foot noise
wall would be acceptable to construct in order to abate the noise.
On November 10, 1999, MnDOT conducted a neighborhood meeting for residents on
both sides of University Avenue. A majority of the citizens present strongly favored
installation of the wall, after years of concerns with truck and traffic noise. The Council
conducted a formal public hearing in December, and after hearing support for the
request, passed a resolution agreeing to installation of the noise wall.
In early January, staff met with MnDOT staff to determine if the wall could be accented
with decorative elements to enhance the image and minimize the visual impact. A solid
wood fence with concrete posts is proposed. Four ideas were discussed: 1) construct
the wall panels on alternating side of the concrete posts to break up the expanse of the
wall; 2) add decorative trim like the fence along Ramsey County Road 96 (it emulates a
pine tree design) 3) install caps on the concrete posts emulating the caps on the brick
pillars at Christenson Crossing and 57th Avenue; and 4) add a color tint to the concrete
posts. MnDOT also pointed out that while the wall is 15 feet in height, there are grade
changes along the roadway that will help to reduce the visual height of the wall from the
roadway. A fifth idea requested for analysis was installation of landscaping along the
wall.
MnDOT Response
MnDOT staff submitted a letter to City offices late Thursday, January 27,2000 identifying
the additional costs for improving the appearance of the fence (see attached letter).
MnDOT is requesting a response from the city regarding the improvements by February
8, 2000. The additional costs are as follows:
Request to Fund Noise Wall Enhancements
January 28, 2000
Page 2
1) Construct the wall panels on alternating side of the concrete posts to break up
the expanse of the wall: No Cost.
2) Add decorative trim like the fence along Ramsey County Road 96 (it emulates a
pine tree design): $27,210.
3) Install caps on the concrete posts emulating the caps on the brick pillars at
Christenson Crossing and 57th Avenue: $68,025.
4) Add a color tint to the concrete posts: $272,100.
5) Install landscaping: investigate MnDOT's Community Roadside landscaping
Partnership Program, cost unknown.
Recommendation
The City has initiated many projects to improve the image of the community along major
roadways:
• The Council has recently re- authorized mowing along the corridors in addition to
MnDOTs schedule at an annual cost of $28,000. This necessitated the
purchase of a $60,000 mower.
• The Public Works Department is proposing to re -grade the University Avenue
ditches and is working with MnDOT regarding this approval (potential cost
around $100,000).
• Entrance signs at major entrances to the City.
Likewise, the Authority has also completed several streetscape enhancements in various
parts of the City:
• Mississippi Street
• East Moore Lake Drive
• 57'' Avenue
• TH 65 east frontage road near Osbome
• Repainted light fixtures along above noted streets
At Thursday's meeting, photos of similar walls will be shown including the Ramsey
County Road 96 example.
Staff recommends that the Authority agree to pay for the decorative trim element ( #2)
and the concrete cap element ( #3) at a total cost of $95,235. Funding would have to
come from the General Fund. The area is within the redevelopment project area, and
the project would be consistent with past improvement projects.
The expense was not anticipated while preparing the 2000 Budget for the Authority. A
copy of the summary sheet for the General Fund is attached. It shows a $93,174
surplus of revenues over expenditures for the year 2000. There is a projected balance
of $11,391,000 at year end in 2000 (this balance includes the costs of the Gateway East
project).
Request to Fund Noise Wall Enhancements
January 28, 2000
Page 3
Please note that because this item was received late in the week, the Executive Director
was unable to review this memo prior to distribution. His analysis and an update will be
provided at Thursday's meeting.
M -00 -18
MNDOT Fax:651 -582 -1496 Jan 27 '00 17:06 P.02
��sOrw
Minnesota Department of Transportation
t'3,of t Metropolitan Division
Waters Edge
1500 West County Road 82
Roseville, IVIN 55113
January 27, 2000
Mr. John Flora, City Engineer
City of Fridley
6431 University Avenue NE
Fridley, MN 55432
RE: SP 0205 -75, TH 47
Project to Construct Noise Wall
Wall Location: West Side of TH 47 from 44th Ave. to North of 53`' Ave.
Dear John:
Thank you for your letter to Mn/DOT of December 21, 1999. In it you stated that the pridley
City Council adopted a resolution supporting the construction of the above referenced noise wall
project. Based on this approval from the City, MWDOT will proceed with the portion of this
project within the City of Fridley.
In your letter and in our subsequent discussions you also indicated that the Council had concerns
regarding the appearance of the wall, you requested Mn/DOT consider building a wall similar to
walls along Ramsey County Road 96 in Shoreview and Vadnais Heights. Although it l possible
a add aesthetic elements to the wall project, the City would have to bear the cost of any added
aesthetic treatments.
One of the items we discussed was landscaping. Landscaping will not be included in this
(except for Mn/DOT's typical wall construction procedures). However, it may be project
landscaping ��g the wall as a separate Y possible to do
ep project within Mn/DOT's Community Roadside
Landscaping Partnership program, For more information regarding this program contact Scott
Bradley, State Landscape Programs Coordinator. Scott's phone number is 651- 779 -5076.
The other possible aesthetic treatments we discussed are listed below:
Offset panels
Decorative trim (pine tree design)
Colored concrete posts
Caps on the concrete posts
It should be noted that incorporating these elem ents into the construction of Mn/DOT's standard
noise wall will not necessarily result in a wall that looks like the walls along Ramsey County
Road 96. One difference, for example, would be the offsetting of panels. The Ramsey County
An equal opportunity employer
MNDOT
Page 2
January 27, 2000
Mr. John Flora
Fax:651 -582 -1496 Jan 27 '00 17:06 P.03
Road 96 walls have two types of offsets: (1) alternating which side of the posts the boards are
attached to, and (2) jogs in the alignment. (For the Ramsey County project, these jogs in the wall
alignment necessitated the acquisition of right -of -way). The wall on TH 47 will not have jogs for
aesthetic effect. However, if the City desires, Mn/DOT will construct the wall with the panels on
alternating sides.
As you know, some of the wall is within the City of Columbia Heights. The length of wall within
Fridley is approximately - -used on preliminary drawings--90.7% of the total wall. Therefore
the cost to the City of Fridley for each of the aesthetic treatments has been prorated at that rate.
The list below shows costs for adding each treatment to the whole length of wall and to the
length of wall within Fridley. If the City chooses any of these treatment options and agrees to
pay Mn/DOT the indicated amount, the options chosen would be added to the portion of the wall
within Fridley.
Aesthetic Treatment Total. Cost Cost to Citty of Fridley
Offset panels None No cost to the City
Decorative trim $30,000 $27,210
(Pine tree design on highway side
of approximately 20% of the panels)
Caps on the concrete posts $75,000 $68,025
Colored concrete posts $300,000 $272,100
I will be calling both you and the City of Columbia Heights to further discuss these issues and
the coordination of wall plans for both cities. If the City of Fridley chooses to have any of these
items added to the project, the City must inform Mn/DOT of this in writing by February 8.
Sincerely,
Steve Ryan, Proj Manages
Metro Division
Minnesota Department of Transportation
1500 West County Road B -2
Roseville, MN 55113
cc: Dr. William Burns, City of Fridley
Mr. Kevin Hansen, City of Columbia Heights
Mr. Walt Fehst, City of Columbia Heights
Liz Benjamin, Mn/DOT
Jim Hansen, Mn/DOT
MEMORANDUM
TO: William W. Burns, City Manager i�N
i PW99 -185
FROM: John G. Flora,(Public Works Director
DATE: November 15, 1999
SUBJECT: Noise Wall Meeting
On November 10, 1999, Minnesota Department of Transportation representatives conducted an open house
at the City of Fridley in regards to the construction of a noise wall on the west side of University Avenue
from 44d' Avenue north to I -694. A total of 27 people attended the meeting, including Councilmembers Bob
Barnette and Ann Bolkcom.
After the explanation of the noise wall was presented, a straw vote was taken of those in attendance.
Fourteen of the property owners voted in favor of the noise wall and seven of the property owners voted
against the noise wall.
During the meeting it was indicated that Council would hold a meeting the first week of December on this
issue. It later became apparent that the first Council meeting in December was December 13, 1999.
Accordingly, we will be sending a letter to the Fridley residents on the west side of University Avenue
indicating that there will be a public hearing on December .13 and that a decision will be made regarding the
construction of the noise wall from 44d' Avenue north to I -694.
Accordingly, recommend that the City Council set a public hearing for the University Avenue noise wall for
the City Council meeting on December 13, 1999.
JGF:rsc
Attachments
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NOISE ANALYSIS DIVISION
MINNESOTA HIGHWAY
NOISE ABATEMENT STUDY
PROPOSED NOISE WALL LOCATIONS
FRIDLEY AND COLUMBIA HEIGHTS
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MINNESOTA HIGHWAY
NOISE ABATEMENT STUDY
PROPOSED NOISE WALL LOCATIONS
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Excerut from December 13, 1999 Council Meetine Minutes
PUBLIC HEARING:
26. CONSTRUCTION OF A NOISE WALL ON UNIVERSITY AVENUE
FROM 44 AVENUE TO I -694 (WARD 3):
MOTION by Councilmember Bolkcom, seconded by Councilmember Barnette, to open
the public hearing. Seconded by Councilmember Barnette.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON
DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING WAS
OPENED AT 7:58 P.M.
Mr. Flora, Director of Public Works, stated that on November 10, a representative from
the Minnesota Department of Transportation (Mn/DOT) conducted an open house
regarding the construction of a noise wall along University Avenue from 40 Avenue
north to I -694 on the west side. 27 people attended. Council decided to hold a public
hearing on this issue to make a position statement to Mn/DOT supporting or not
supporting the decision to go ahead with a design for this wall.
Councilmember Bolkcom stated that the Council sent a letter to residents abutting the
proposed wall.
Mr. Flora stated that the City sent a letter to all of the residents abutting the wall on Third
Street. A notice was also sent to Focus News to be published.
Mr. Jim Hanson, MnDOT representative, stated that the noise wall would extend from
44'h Avenue to an area beyond 53`d Avenue on the west side of Trunk Highway 47. In
1995, the State Legislature requested Mn/DOT to do a noise priority study on all
freeways and expressways in the state of Minnesota. Eight hundred areas were covered.
The area along University Avenue was rated number 10 on the list for priorities for a
noise wall. Mn/DOT proposed to construct this portion during the summer of 2000. The
cost would be $600,000 to $900,000. A concrete post, wood - flanked noise wall would be
constructed where the right -of -way fence is today. Mn/DOT has already proposed two
different projects along two different roadways. On I -35W the residents and City
Council have rejected a noise wall. One was accepted on Trunk Highway 100 in St.
Louis Park. Although Mn/DOT proposed the noise wall, they would not force it to be
built. It is up to the City and the residents.
Starting at 4,e Avenue, there would be about a 10 -12 foot wall above the profile of the
roadway. Most of that area has homes that are set back and down lower. From 40h to
beyond 53d Avenues would be a 15 foot wall. Most of the in -place landscaping would
be removed. Mn/DOT would do minimal replacement of landscaping due to the amount
of money available for the project.
Councilmember Barnette asked about the boundaries of the noise wall along 53`d Avenue
Mr. Hanson stated that it was eight houses just north of 53`4 Avenue where it would tie
into the present in -place berm that has been there for about twenty years.
Councilmember Bolkcom asked Mr. Hanson if he could summarize the comments he
received at the earlier public meeting.
Mr. Hanson stated that the comments reflected that people supported for the noise wall.
One question was regarding who was going to pay for the noise wall. Mn/DOT would be
paying for the full cost of the noise wall.
Mr. Hanson showed pictures of the noise wall along the Highways 610 and 10 area. The
wall is a concrete post with wood - flanked noise wall.
Mr. Burns asked Mr. Hanson about the reduction factor of noise by construction of this
wall.
Mr. Hanson stated that in this area the noise levels of the present day are in the high 60s
to low 70s decibel level. There would be approximately a seven to eight level decibel
reduction. This would be about five decibels below the standards. The State standards
are set up for conversational speech at 65 decibels. That compares to two people talking
at a distance of about 3 to 4 feet apart. No noise over that would interfere with that
conversation. An office surrounding is in the mid to high 50 level. MN/Dot is trying to
get to 60 for a noise level. A noise level of 65 would be comparable to TV noise level or
a manual typewriter. A vacuum cleaner would be around 70.
Councilmember Barnette asked if the noise level would be reduced by fifty percent.
Mr. Hanson stated that it would be around forty percent. All of the noise levels that
Mn/DOT predicts and monitors are in an activity area on the ground level, five feet above
the ground. They use a microphone to do the monitoring.
Mayor Jorgenson asked if the noise would bounce back over to the east side of the
highway.
Mr. Hanson stated that there will always be some reflection. Mn/DOT has done noise
studies where there are two lanes of traffic like Trunk Highway 47. They determined that
it may be a 1 to 1.5 level increase in noise.
Mayor Jorgenson asked if there were other Fridley sites that have this problem.
Mr. Hanson stated that anywhere there were residential areas Mn/DOT did monitoring.
No other sites ranged quite as high. There were some sites on I -694 on the north side but
it did not rank in the top ten. This particular site ranked number ten on the list. This was
combined with one site that had a mid 40s decibel level on 4e and 53d Avenues to make
one project. There were some sites on I -694 that had these problems. One was north of
the Cub Foods store on the west and east side going all the way up to just south of
Northtown. Mr. Hanson stated that he did have extra copies if anybody wanted to request
one.
Councilmember Bolkcom asked if the residents could do landscaping between their yard
and the right -of -way.
Mr. Hanson stated that it was safe to say that Mn/DOT will allow the residents to do
landscaping up to the noise wall. Mn/DOT does not have enough financing available to
pay for the equipment for the landscaping. If anything serious happens with the wall,
Mn/DOT would come back and repair that.
Councilmember Bolkcom stated that one of the residents had a question about storm
drainage between 47" and 46" Avenues.
Mr. Hanson stated that this project would be a noise wall project. The landscaping would
perpetuate the current drainage along 47s'Avenue. Anything that is west of Mn/DOT
right -of -way, is not something that Mn/DOT is capable to deal with.
Councilmember Bolkcom stated that Mr. Flora could make note of the storm drainage
problem.
Mayor Jorgenson stated that the amount of fumes coming up from the highway from the
traffic was a concern.
Mr. Hanson stated that lead content comes from gasoline. There has not been any gas
stations offering leaded gasoline for twenty years in the metropolitan area. The State of
Minnesota's air quality is improving all of the time due to their maintenance level of
carbon monoxide. There would be some carbon monoxide problems in areas with heavy
traffic, but they have not had a violation with the Minnesota Pollution Control Agency in
five years. Mn/DOT does not deal with pollution aspects with a noise wall pertaining to
air quality. If they were doing a major rebuild like adding lanes, they would be looking
at doing quality monitoring.
Councilmember Bolkcom asked if there would be any special assessments to any of the
residents in this area.
Mr. Hanson stated that Mn/DOT Metro Division would be financing this project out of
their own construction and maintenance budgets and putting $1,500,000 per year into
these projects.
Mr. Mike Riley, 4703 Third Street, stated that his property abuts where the noise wall
would be. His concern was the drainage between 47'" and 46 hAvenues. He said there
are drains that get flooded on the highway. When the big super rains come, it runs into
yards right up to the edge of houses. He asked if the noise wall would provide a dam to
possibly shift water from coming into the yards.
Mr. Hanson stated that the noise wall would go down to the ground level and may have
minimal retention on the highway side.
Mr. Riley stated that the problem was that when the grass was cut, the grass would get
washed down the drains, build up and catch dirt. He really wanted the noise wall to be
constructed. He felt the noise was very loud in his back yard in the evenings and
mornings. He said there are many trucks in the morning. He said the noise from the
trucks is very loud. He said there has been an increase in traffic since he bought his
house in 1991.
Mr. Loren Smerud, 4603 Third Street, stated that his backyard would be right down to the
wall. He would like to thank Mn/DOT for taking them into consideration and giving
them the information they needed. They cannot have neighbors over to visit in the
backyard because of the noise. He felt the noise would only keep increasing. From that
standpoint, he was in favor of the wall. Because it is up to the neighborhood, he and
some others went out to visit residences to sign a petition for supporting the wall. They
obtained 83 signatures in support of the wall. He stated that he would leave the list with
the names and telephone numbers of the citizens who signed the petition.
Councilmember Bolkcom asked Mr. Smerud if he knows how many citizens were not in
support of the wall.
Mr. Smerud stated that the petition was only for people who were in support of the wall.
There were a few who were against the wall, some did not care, but most were in support.
He would highly recommend that Council approve the wall.
Councilmember Bolkcom thanked him and his neighbors for taking the time to circulate a
petition.
MOTION by Councilmember Bolkcom to accept the petition. Seconded by
Councilmember Barnette.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON
DECLARED THE MOTION CARRIED UNANIMOUSLY.
Mr. Jeff Jansen, 4727 Third Street, stated that he had a question about the storm water.
Twice since 1987 he has had water flood his foundation. He thinks he saw someone from
Mn/DOT working on the storm water drainage problem, but he was not sure. He felt that
five years from now, the traffic will be twice as bad. He said he wanted the wall built.
Mr. Smerud asked how long the walls usually last.
Mr. Hanson stated that the wall should last twenty years. Most of the noise walls built up
to the present are at least twenty years. If repair is needed, Mn/DOT will come out and
reconstruct. They have only had that happen twice in the last 25 years.
Councilmember Bolkcom asked if they had to replace any walls.
Mr. Hanson stated that the only ones they actually had to replace were on 1-3 5W.
Mayor Jorgenson asked what they do with the process of repairing the walls if they have
to go through a resident's property to do so.
Mr. Hanson stated that they would have to get an easement if they have to, but they have
cherry pickers to use to avoid that.
Councilmember Bolkcom asked how they could deal with the storm drainage problem.
Mr. Flora stated that they have done some work along University Avenue with the
drainage system. The water seems to back up when debris gets into the drainage system.
Mr. Hanson stated that he could contact their water resource people and then get back to
Mr. Flora.
Mayor Jorgenson stated that there are several sections of Highway 47 that have this
problem any time there is a major rainfall where water is standing on the highway. Part
of the problem is due to the maintenance of the corridor. The City is taking on the
maintenance all within its boundaries.
Councilmember Bolkcom stated that maintaining that corridor should help that problem.
MOTION by Councilmember Bolkcom to close the public hearing. Seconded by
Council- member Barnette.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON
DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC
HEARING WAS CLOSED AT 8:28 P.M.
NEW BUSINESS:
27. RESOLUTION NO. 108 -1999 SUPPORTING THE CONSTRUCTION OF A
TRUNK HIGHWAY 47 NOISE WALL:
MOTION by Councilmember Bolkcom to approve the resolution supporting the
construction of a Trunk Highway 47 noise wall. Seconded by Councilmember Billings.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON
DECLARED THE MOTION CARRIED UNANIMOUSLY.
Councilmember Bolkcom thanked residents for coming to the meeting and for their hard
work with the petition. The neighborhood speaks.
Mayor Jorgenson stated that she lives near I -694 and Highway 65. She lives with that
noise everyday, and she understands why the citizens are present with the petitioner and
necessary signatures.
Councilmember Barnette asked Mr. Hanson when the construction would begin.
Mr. Hanson stated that it would probably start in July.
Mayor Jorgenson stated that residents should be reminded that the old fence will be
coming down. There will be work being done in everybody's back yards, and they need
room to work. Mayor Jorgenson asked Mr. Hanson if they would take the old fence
down a couple of weeks before it starts.
Mr. Hanson stated that a couple of weeks is probably correct.
Councilmember Bolkcom stated that everybody will be notified beforehand with a letter.
Mr. Hanson stated that was correct.
Mr. Curt Nitschke, 4610 Third Street, asked what MN/Dot will do with the old fence.
Mr. Hanson stated that they try to salvage it somewhere, but if anyone was interested in
getting some of it, a project engineer and the contractor could be consulted.
Councilmember Bolkcom asked if the project manager's telephone number would be in
the letter that residents receive.
Mr. Hanson stated that the project manager engineer would be the main contact. His
telephone number and name and date of construction will also be in the letter.
Mr. Robert Archer, 4595 Third Street, stated that between 44t` and 45t` Avenues on the
east side people were unaware of the wall.
Mr. Hanson stated that he should talk to the City of Columbia Heights. The original
letter included both the Fridley and Columbia Heights area.
Councilmember Bolkcom stated that they could make a copy of the petition and notify
Columbia Heights to contact the people to let them know what is going on.
Mr. Hanson stated that they would contact Columbia Heights.
Fridley HRA HRA TOTALS
2000 Budget Fund Totals
Acct
Revenue and Expenditure Detail
TOTAL HRA
TOTAL
TOTAL
TOTAL
REVENUES
4112
2000 BUDGET
GENERAL
HOUSING
TIFS
1000
Tax Incremental
S 3,180,680
4131
Health insurance
4132
1000
Property Taxes
Life insurance
-
City Admin expenses
3,180,680
1000
Interest Earnings
265,000
122,000
143,000
-
2000
Rental
509,000
343,000
62,000
104,000
5100
Sale of Real Estate
9,600
9,600
_
-
6100
Miscellaneous
60,000
Professional services
-
60,000
4332
TOTAL REVENUE
10,000
S
Transportation
10.0 00
_
EXPENDITURES
PERSONAL
Printing and binding
4,034,180
474,600
215,000
3,344,680
SERVICES:
4101 Full time - regular
4102
Full time - overtime
4104
Temporary - regular
4105
Temporary - overtime
4112
Employees leave
4120
Medicare contribution
4121
PERA contribution
4122
Social security contribution
4131
Health insurance
4132
Dental insurance
4133
Life insurance
-
City Admin expenses
4150
Worker's compensation
-
TOTAL PERSONAL SERVICES
SUPPLIES:
185
4212
Fuels and tubes
4217
Clothing/laundry allowance
4220
Office supplies
4221
Operating supplies
4222
Repair & maintenance supplies
4225
Small tools and minor equipment
-
TOTAL SUPPLIES
OTHER SERVICES AND CHARGES:
4330
Professional services
4331
Dues and subscriptions
4332
Communication
4333
Transportation
4334
Advertising
4335
Printing and binding
4336
Insurance, non - personnel
4337
Conferences and school
4338
Utility services
4340
Services contracted
4346
Miscellaneous
4350
Payments to other governments
65
TOTAL OTHER SERV AND CHAR
CAPITAL OUTLAY:
165
811
4510
Land
4520
Building
4530
Improvements other than bldg
4540
Machinery
4560
Furniture and fixtures
TOTAL CAPITAL OUTLAY
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REV OVER EXP
OTHER FINANCING SOURCES (USES)
Operating Transfers In
Operating Transfers Out
Transfers to City
TOTAL OTHER FIN SOUR(USES)
EXCESS (DEFICIENCY) OF REV AND OTHER
FINANCING SOURCES OVER (UNDER) EXP
S 48,518
48,518
21,326
-
21,326
6,065
-
6,065
853
-
853
2,445
-
2,445
-
3,649
-
3,649
2,620
-
2,620
185
-
185
43
-
43
171,500
171,500
3,014
S
-
3,014
-
6
17,5
8718
S
750
250
500
900
400
500
S 1,650
650
1,000
S 253,565
545
173,000
65
80,500
2,561
165
811
380
750
1,100
600
500
1,000
28,500
1,650
17,000
6,500
5,000
1,650
-
8,700
8,700
-
2,600
1,600
1,000
250
-
103,250
15,000
1,250
47,000
250
55,000
181,250
-
15,000
S 598071
204,776
16,250
87,445
165,000
306,750
S 459,378
-
459,378
283,000
4,500
-
278,500
41500
737,878
S 742,378
1,603,217
381,426
177,163
1,044,628
S 2,431,063
S
(919,189)
S (919,189)
S 1,511,874
93,174 37,837 2,300,052
(143,000) (776,189)
(143,000) (776,189)
93,174 (105,163) 1,523,863
BUDGET FUND BALANCE 1 -1 -2000 $ 9,803,499
11,298,607 (753,009) (742,099)
BUDGET FUND BALANCE, 12 -31 -2000 $ 11,315,373 11,391,781 (858,172) 781,764
HMARAWLIDGET42000 EXPANDED HRA BUDGET DETAIL.xIs)HRA TOTALS
9/30/99
7
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum CW OF
FR1131"
DATE: January 28, 2000
TO: William W. Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Update on Gateway East Project
Land Acquisition
We are currently waiting for a date for the Commissioner's hearings regarding the
condemnation of the Miller and Valvoline properties. Neither party challenged the
public purpose of the taking at the initial hearing on December 22, 1999, and we expect
transfer of title to take place on or about February 22, 2000. In the meantime we are
scheduling soil testing and geotechnical evaluations on each site.
The closing on the Fogarty duplex is scheduled for January 28, 2000. Both tenants are
still in the property at this time. Our relocation consultant has been working with the
tenants to find replacement housing and we expect both to vacate by March 31, 2000.
Demolition and Environmental
Staff is currently in the process of drafting specifications and soliciting quotes for the
demolition of the Cash 'n' Pawn and JR's Automotive buildings. All of the
environmental work has been completed on both buildings, however we are still waiting
for MPCA approval of our Remedial Action Plan for the Cash 'n' Pawn site. The RAP
identifies what steps the HRA will take in the event contaminated soils be encountered
during the demolition or construction. At this point, the contamination is far enough
below the surface that our consultant believes it won't be a problem.
MPCA is also in the process of issuing a site closure letter for Cash n Pawn which in
effect is a green light to move forward. Barring any problems, we expect the
demolition to take place some time in the next 60 days.
HRA MEMOS (FEB. 2000 MTG.).doc
Gateway East Update Memo
January 28, 2000
Page 2
Developer RFP and Planning Process
Staff is currently in the process of preparing a written Request for Proposals guide and
developer selection criteria. Additional information will be presented to the HRA at
their March meeting. We are anticipating that the solicitation and evaluation process
will start in April and be completed by May 2000. Selection of a developer could take
place in May or June of this year. In the meantime, a significant amount of city
commission and public input will be sought.
In mid - February we plan to meet with the Planning Commission to obtain their
feedback on the project. Later in the month we plan to conduct a neighborhood
meeting to review the project as well. By including the neighborhood early on in the
process, we hope to identify as many of pertinent issues before soliciting a developer.
In March, we would meet with the HRA and City Council to review all of the input
received and then request authorization to proceed with an RFP.
Attached for your reference is a matrix that shows the projected schedule of events
through 2001. Our goal is to break ground in Fall 2000 with a 12 month build -out to
completion.
Project Concept
At this point, we are focusing on a residential use as opposed to a commercial or
mixed -use project. A residential project makes the most sense for a number of
reasons. First, from a land use perspective it is more compatible with the surrounding
neighborhood to the north and east. Second, it provides a wonderful entrance in the
city similar to the Christiansen Crossing project.
As you know, last year Mark Koegler prepared several potential town home sites plans
for the project. Attached for your reference are copies of those plans. The densities
ranged from 14 units to 24 units, depending on the configuration of University Avenue
service road.
On January 28th we plan to meet with Bill Beard a residential developer to get initial
feedback on the proposed town home concept plans and what type of product would be
marketable. We will update the HRA on the outcome that meeting on Thursday night.
Unless otherwise directed, we will move forward on the Gateway East project as
outlined above.
M -00 -10
HRA MEMOS (FEB. 2000 MTG.).doc
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HOUSING & REDEVELOPMENT rL
AUTHORITY
Memorandum CWOF
FMDLH
DATE: January 28, 2000
TO: William W. Burns, Executive Director
FROM: Barbara Dacy, Community Development Director
SUBJECT: Medtronic Update
There are a number of issues to update the Authority next Thursday related to the Medtronic
project:
• Closing and Title issues
• Upcoming meeting with Medtronic
• Interest from Hotel Developers
• Potential for Partnering with Columbia Heights
Closing and Title Issues
The closing on the remainder of the property occurred the last week of December 1999.
Medtronic paid the Authority approximately $44,989.70 as the "land holding payment" consistent
with the development agreement. In exchange, the Authority has received a note for
approximately $5,000,000 in payment for the land. Resolving a variety of title issues is the
remaining task. One of the issues was resolving the actual name of the Authority to satisfy the
Examiner of Titles at Anoka County. Other issues include insuring that old easements have
been properly vacated, and also of interest is an old lease that was recorded against the
property, for a billboard. Krass Monroe is requesting the Examiner to remove it from the title
records, but there is no termination date in the lease, so the Authority may have complete a
"proceeding subsequent" to officially remove it from the Torrens certificate. More information
will be available for the March meeting.
Medtronic Meeting
Medtronic is very concerned about the status of possible improvements to TH 65. Attached is a
letter from Donn Hagmann expressing that concern, as well as a copy of the letter in response
to Mr. Hagmann. A meeting has been established for Thursday morning, February 3. An
update will be provided to the Authority. The City has not yet heard as to the outcome of its
federal funding application.
Hotel Interest
On January 10, 2000, staff met with CSM, a national development and property management
company. Dan Walsh of their office contacted the City interested in pursuing a site for a hotel.
Attached is a synopsis of the tour of some of the CSM hotel sites in the metro area.
LL'J
Medtronic Update
January 28, 2000
Paqe 2
CSM is a franchisee of Marriott products and because they are developers, they can add
amenities to their projects not typical of other Marriott developments. We toured the extended
stay facilities in Roseville (The Residence Inn, which Medtronic uses from time to time), the
Town Place Suites in Eden Prairie (designed for stays over 30 days), and the limited service
hotel, the Courtyard on 494 in Bloomington. CSM upgraded several aspects of this type of hotel
including an upgraded lobby appearance, added a full service restaurant, and small meeting
room facilities. CSM appears to be well qualified to complete these types of projects. Their
interest in the lodging industry was started in 1996.
Both types of hotel services, both extended stay and limited service, are becoming popular to
develop in tandem. The Bloomington example has a Residence Inn immediately behind the
Courtyard. In Eden Prairie, CSM is developing another limited service product immediately
adjacent to the Town Place Suites called Spring Hill.
Mr. Walsh will be contacting Medtronic for a potential meeting sometime in the immediate
future. Staff will update the Authority as to the outcome of this meeting. In short, staff was
impressed with CSM's developments.
Working with Columbia Heights
Councilman Billings, Commissioner Kordiak, and an elected official from Columbia Heights met
in mid - January to initiate discussion about the feasibility of developing a joint community
analysis of the impacts from the Medtronic project. As a result, there could then be a
coordinated approach to deal with the variety of impacts that would ultimately benefit both
communities. It was determined that the Community Development Directors would meet and
identify the potential outcomes of the study and a recommended process, which might include
some type of joint citizen task force to assist both cities. Another meeting to review these
results would be scheduled in the near future, and a determination would be made at that time if
the idea has merit.
No action is needed by the Authority on any of these issues at this time.
M -00 -16
A
NOTES FROM JANUARY 10, MEETING WITH DAN WALSH — CSM CORPORATION
1. CSM is an official franchisee of the Marriott products, and manages hotels across the
country.
2. CSM entered into the lodging industry about four years ago, when one if its principals
decided that it was worthwhile to pursue becoming a franchisee and making the hotel
element part of its development projects.
3. CSM, as a franchisee has the ability to add interior and exterior upgrades to the different
types of hotels offered by Marriott.
4. The first site that was toured was the Residence Inn, in Roseville, on the east- side of
35W in the Center Pointe Development. The Residence Inn has the following
characteristics:
• Customers usually stay for two -four weeks.
• A complimentary breakfast is served. The breakfast was recently upgraded from a
continental style to a Belgian waffle, eggs, and bacon type of breakfast
(it certainly smelled good).
• About 25 employees serve a typical Residence Inn.
• A studio and one and two bedroom suites are available.
• A full kitchen is offered with the one bedroom and two bedroom suites.
• The Residence Inn offers personalized grocery shopping service for customers at
Byerlys. Staff reported that there are a lot of international customers; therefore, the
need to purchase a variety of foods, and having Byerlys close by was a definite
advantage.
• Shuttle service is provided from the Residence Inn to area business within a radius
of five miles.
• There are three floors in this complex, with 108 units.
• Medtronic uses this facility for some of its employees who are in "training" typically,
Medtronic employees stay for two Y2 weeks.
• Typical occupancy averages at 72 percent.
• A fitness center is provided as well as, an indoor pool, and laundry service. Outdoor
pools are typical of the Marriot product. CSM made a decision to construct it
indoors.
• The two bedroom suites have fireplaces on the second and third stories.
• An outdoor area for gatherings and barbecues was also provided.
5. The next site that was toured was the "Mail of America site" where a Marriott Courtyard
is provided along side a Residence Inn. These two facilities were developed in the
summer of 1998. The Courtyard facility is a limited service hotel, with approximately 200
units.
CSM upgraded the typical Courtyard lobby to look like a full service hotel lobby.
Hotel employees reported that some of their customers were very impressed with the
hotel lobby. In fact, some people go outside of the building, and look at the sign to
verify they are in the right place!
A bar is provided in the lobby from 5 p.m. to 1 a.m., and has been very successful.
This is typically not done in limited service hotels.
• A full - service restaurant is also provided which is open from 6 a.m. to 10 p.m. It
offers a breakfast buffet as well as menu service. Lunch and dinner are also
provided. This is another feature that differentiate CSM from a typical Courtyard.
• Six meeting rooms are provided with a capacity of each room of about 40-48 people.
• A full compliment of audiovisual rental and equipment is available.
• Hotel Management stated that their market has primarily come from customers that
typically frequent a full - service Marriott. Also, because of their location next to the
Airport, they do handle a lot of "distressed" travelers that may have to stay over night
before getting on a new flight.
• There are 80 employees who work at the Courtyard; a lot of those are part- timers.
• An indoor pool and fitness area are provided.
• There is a demand for a double size Jacuzzi.
• Male and female showers and locker rooms are also provided.
• Typical average occupancy for the Courtyard is 82 percent. Hotel Management
believes that this is the highest occupancy on the 494 strip.
• Underneath the Courtyard structure is underground parking of about 44 spaces.
During the winter Management will lease these spaces for $6 per night.
• The Courtyard construction was concrete block as opposed to the Residence Inn
and other products that are typically stick construction.
• The Hotel Management likes the fact that the Courtyard and Residence Inn can be
located immediately adjacent to one another because they compliment each other
and sales staff can "cross sell" clients.
• Typically, most courtyard products are three stories and more sprawling in their
building footprint. The Mall of America site is several stories tall and more compact
and efficient. A similar product is being offered in Boston and Seattle.
• Hotel Management is evaluating the need to rent more trunk phone lines to enable
small personal computers to be located in each of the Courtyard units.
6. The next site we toured was the Town Place Suites in Eden Prairie.
The Town Place Suites is a longer -term stay facility where customers stay more than 30
days.
• A weekly fitness plan is coordinated with the nearby Northwest Athletic Club.
• The Town Place Suites in Eden Prairie is number eight out of 66 Town Place Suites
constructed throughout the County.
• The Town Place Suite product was initiated in 1998, so there has been a rapid
deployment.
• CSM is also constructing the Spring Hill Product, which is a limited service hotel. It is
not unusual to build a limited service hotel component along side the extended stay
facility (Bloomington is another example).
• An outdoor pool was provided at the Eden Prairie Town Place Suites.
• The architecture was designed to recreate a townhome feel "and main street look ".
• As opposed to a typical hotel, housekeeping services are only provided two times a
week.
• A studio room begins at $1,450, or $49.50 per night.
• There is a 24 -hour staff available.
• Occupancy averages at 83 percent.
• CSM created a concept of a 1- bedroom suite with a "separate working space area ".
• Competitors in the over 30 -day extended stay market are the Homestead
companies, and the America Suite Company, but they are a lower cost facility.
• CSM is also pursuing °Heartyplank° or a painted cedar siding on its developments.
They would also like to use more brick than the typical construction product.
7. Dan Walsh reported that in terms of siting a hotel, CSM looks for the demand generators
of businesses that require extended stay or nightly stays. It also seeks sites that have
high visibility and good access. They like to be located immediately next to corporate
sites and attract the corporate relocation employee market. Typically, in other parts of
the country they are near high tech types of offices.
8. CSM being affiliated with the Marriot products have the ability to build the following:
• Limited service, this includes the Spring Hill and Courtyard products.
• The extended stay facilities, this is the Residence Inn and the Town Place Suites.
• Full- service hotel would be the Ritz Carlton and the Marriot.
CSM also does some work with Hiltons in other parts of the country. The Hilton Garden
Inn is an upperscale competitor.
9. CSM started in the multiple construction family area, and has since diversified into
commercial, industrial, and most recently the lodging industry.
1 r
f
NN
December 23, 1999
Bill Burns
City Manager
City of Fridley
6431 University Avenue NE
Fridley, MN 55432
Dear Bill,
Medtronic, Inc.
3350 '.;aora Street N*
Shoreview. %IN 55126.2973 L:Sa
%- a- .v..nedtronic. corn
te. i.i.il�.3004
On behalf of Medtronic, Inc., we are formally requesting the City of Fridley to work in
conjunction with all State and Federal agencies to address projected traffic problems on
State Highway 65. This will affect our 800,000 square foot Rice Creek campus, and our
master - planned 1,000,000 square foot Lake Pointe site currently under construction.
During the master - planning stage of our Lake Pointe development, Medtronic
commissioned an Alternative Urban Area -wide Review (AUAR) as part of the State and
local approval process. There were several issues that surfaced in the AUAR that will
inhibit Medtronic's ability to systematically grow into the site. On September 16,
Medtronic's Chairman & CEO, Bill George, met with Ted Mondale and Commissioner
Tinklenburg to discuss these issues and begin the process to determine a solution. The
issues are:
A traffic study done by SRF, a local consultant, suggests Highway 65 will need a
Parkway, north across Moore Lake to Mississippi Street, approximately one mile.
The SRF study indicates this upgrade will be needed regardless; however our
Ph aea TW0 plan of adding 300 000 cn1 inre feat and 1 inn= n �mDl Y In 3
moves up that inevitable road improvement by several years._
The Development Agreement between the City of Fridley and Medtronic
indicates the arrangement was negotiated on the context that Medtronic would
absorb all unique on -site improvements such as parking ramp, soil correction,
road improvements, etc. Currently the estimated cost is over $75 million dollars
over three phases of potential expansion. Conversely the public sector would
absorb all off -site infrastructure costs under which State Highway 65 clearly falls
Thus far the City has been authorized through the State Lien Grant Fund in 1999
to begin the engineering analysis for this project. We have Bard that estimates
ran ingfrom $4 to $7 million dollars will be needed to fift develop these road
improvements.
W "hen Life Depends on Alledical Technology
4
2. When our Phase One development is complete and we bring an additional 1,100
employees into the traffic mix, we request that MNDOT consider modifying the
_ragtp meters and lights to and from 1694 to negate backups indicated from the
SRF study.
We would like to arrange a meeting in the near future to discuss the next steps. Please
call me at 612- 514 -2335.
Best regards,
Donn Hagmann
Real Estate Director
DH:kv /ref.99.103
1
Clil'OF
FRIDLEY
FRIDLEY (MUNICIPAL CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY, MN 55432 • (612) 571 -3350 • FAX (612) 571 -1287
January 12, 2000
Donn Hagmann
Real Estate Director
Medtronic Inc.
3850 Victoria Street N.
Shoreview, MN 55126 -2978
Dear Donn:
Happy New Year! Thank you for your letter dated December 23, 1999 formally requesting the
City's assistance to address the traffic concerns on TH 65. Your letter asked that I call you to set
up a meeting, and I will do that, but I also wanted to respond to you in writing to report on the
City's progress regarding the two issues identified in your letter.
First, I am happy to report that the City has made significant progress toward addressing the first
issue identified in your letter. I have enclosed a copy of the federal funding application that the
City submitted in September 1999 requesting $5,500,000 in federal funds to construct an
additional north and southbound lane on TH 65 from the Medtronic Parkway intersection to just
north of the Moore Lake Drive intersection. The federal funding program will require an
additional S 1,400,000 of a "local match" to fully fund the 56,900,000 project. Preparing this
application required the following investments on the part of the City:
• The Fridley HRA paid for a preliminary soil study in March 1999 to determine if the soils
undemeath the causeway were suitable to support "sheet pile walls" which would
provide the outer edge of the additional lanes.
• The Fridley HRA paid for a subsequent engineering analysis that expanded on the
original soil work analysis to develop a preliminary design of a "sheet pile wall ". The
study also resulted in a preliminary cross section of the project depicting the additional
lanes.
• City staff met with MnDOT personnel, Met Council and Transportation Advisory Board
Members, and other affected agencies to develop support for the federal funding
application.
• The Fridley HRA hired a consultant to prepare the application.
• City staff (Barbara Dacy) prepared a successful comprehensive plan amendment to
identify the project as a top transportation priority for the City.
As you know, Section 6.9 ( "TH 65 Improvements ") of the agreement between the City of Fridley
and Medtronic permits Medtronic to complete the entire campus construction despite the status of
the TH 65 improvements. Other cities have required private property owners to participate
financially in highway improvements as conditions of development approvals. The City, by
agreeing to this language, has fully cooperated with Medtronic's request to insure that the private
sector is not responsible for public improvements. This section also states that Medtronic "will
assist the City in securing matching funds by cooperating with the City in its request for grants
from the State, including the programs offered by the Minnesota Department of Trade and
Economic Development ". You should be aware that engineering fees run 10% to 15% of the
project cost, so the 5500,000 grant which was promised by the Legislature last year will not cover
all of the engineering expenses, nor the $1,400,000 in matching funds required by the Federal
application requirements. The City will be aggressive in soliciting state funding for the "local
match" and other costs, but the City, as in the paslp by cooperating with grant applications.
The work cited in the bullet list above represents over $ 5,000 in consultant costs to either the
City or the HRA. The City has worked aggressively on TH 65 issues for the last year and will
continue to do so.
The competition for federal funding is fierce. There are over 300 applications and a limited
amount of funding. The Metropolitan Council will decide on the fimding applications some time
in February. If we are not successful, we may have to cooperate again on approaching the
Legislature. At this point, however, we must wait for the Met Council to make their decision.
In regards to issue two of your correspondence, the City is more that willing to meet with you and
MnDOT staff to find a solution to the stacking issues at the HOV lights on the entrance ramps at
I -694. My staff has reported to me that MnDOT staff has been responsive and helpful to date,
especially when Medtronic requested its access to the Rice Creek Campus.
Donn, I look forward to meeting with you. I will call you to set up a meeting.
Sincerely,
William W. Burns
City Manager
s
e
CSM Lodging
2575 University Ave. W., #150 • St. Paul, MN 55114 -1024 • (651) 646 -1717 • Fax (651) 603 -7671
January 11, 2000
Ms. Barbara Dacy
Director Community Development
City of Fridley
6431 University Avenue NE
Fridley, Minnesota 55432
RE: Hotel Development Opportunities in Fridley
Dear Barbara:
I enjoyed our hotel tour yesterday and the chance to learn more about the opportunities
for development in Fridley. It was evident that your group has a vision for the
community, and the Medtronic project is a tremendous step in achieving your goals.
I have enclosed photographs of our Courtyard by Marriott hotel in Portland as well as a
Hilton Garden Inn that we recently opened in Scottsdale. I think these pictures provide
another illustration of the type of hotels that CSM develops.
I hope to meet with Donn Hagmann in the next two weeks, and I look forward to
discussing a potential hotel with you in more detail at that time.
Thanks again for your time yesterday. We look forward to working together in the near
future.
Ve ruly Y ,
ani�I�W al h
Hotel Development Manager
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum CMO,
FR IXff
DATE: January 28, 2000
TO: William W. Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Remodeling Advisor Update
We are disappointed to report that Ginny Harrington is stepping down as the
Remodeling Advisor, effective February 11, 2000. Ginny has been with the HRA since
July 1999 and can no longer commit to the 24 hour per week schedule for non -work
related reasons.
We have already initiated the recruitment process and began advertising this past
weekend. Our goal is to have a replacement on -board by early March in time for the
North Metro Home and Garden Fair on March 18"'.
Ginny has been a wonderful employee to work with over the past 7 months. In
addition to consulting with residents on their home improvement projects, Ginny has
helped plan the home show, revised the Rambler Remodeling Guide and coordinated
our building demolition projects. We will miss her active involvement in our housing
programs and fun presence around the office.
No action is needed by the HRA at this time.
M -00 -13
HRA MEMOS (FEB. 2000 MTG.).doc
11
HOUSING & REDEVELOPMENT W
M
AUTHORITY
Memorandum
MM
E
DATE: January 28, 2000
TO: William W. Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Follow -up to Discussion on Eligible Improvements
This is a brief reminder to the HRA that we have not forgotten about our previous
discussion on eligible improvements, particularly decks, porches and other exterior
improvements. As you recall, this issue was raised by the HRA last fall in response to a
loan that had been made.
In evaluating this issue at the staff level, we decided to include a question in the
upcoming Council- Commission survey. We believe this is an excellent forum for
defining the issue and gauging the sentiment of our elected and appointed officials.
We look forward to the survey results and further discussion with the HRA.
M -00 -14
12
HRA MEMOS (FEB. 2000 MTG.).doc
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum CIWOF
Date: January 28, 2000
To: William W. Bums, Executive Director
From: Barbara Dacy, Community Development Director
Subject: Council Commission Survey
Its that time of year again! On February 4, 2000, the City Manager's office will be
sending out the Council Commission survey to the Authority and other Commission
members. In a previous email, I sent a copy of the 1999 questions. The City Council
will be reviewing the 2000 questions at their Conference Meeting on January 31, 2000.
There are several questions relating to redevelopment issues.
The Council wants to meet with certain commissions about the outcomes of the survey
in March. The City Manager will be reviewing potential dates with the City Council on
Monday night. One option is to have a dinner meeting prior to the regular meeting on
March 2, 2000. The Council however may have a number of meetings that week; so
another update will provided Thursday evening.
No action is needed on this item.
M -00-17
13
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum
DATE: January 28, 2000
TO: William W. Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Femelius, Housing Coordinator
SUBJECT: Update on Miscellaneous Property Acquisitions
rij
1
At the December HRA meeting, the HRA authorized the acquisition of several commercial and
residential properties. As you recall, since we could not close all of the transactions by the end
of the year, we placed the funds in escrow with Old Republic Title Company. The following is a
progress report on those acquisitions.
Residential Sites
A closing was conducted on 630 Ely Street on December 22, 1999. The property was a HUD
foreclosure and will be torn down in the next 60 to 90 days. Closings are scheduled for January
28, 2000 for 571 Lafayette Street and 6175 East River Road. The sellers will continue to occupy
the properties, rent -free, for up to 6 months while they find other housing accommodations.
This arrangement was offered as an incentive to sell their homes. Both sites will be demolished
once the homes are vacated.
Vacant Commercial Sites
We are currently in the process of completing soil testing and geo- technical analysis on the
three vacant lots along Old Central. Once those reports are finalized, we will assess any soil
correction costs and whether it is prudent to proceed with the closings. The HRA can back -out
of the purchase agreement (at no cost) if the costs are too high.
Werner's Furniture Site
Our environmental consultant is finalizing the Phase 1 Assessment of the site and should have
the report done by the end of this month. Staff will review that information and evaluate
whether the closing should proceed. Based on the preliminary walk - through it doesn't appear
that there are any significant environmental issues.
We will have an additional update at the March HRA meeting.
M -00 -11
HRA MEMOS (FEB. 2000 MTG.).doc
14
To: HRA BOARD
CC: BARB DACY
From: JULIE VOGEL, CPA
Date: 12/27/99
Re: REVIEW OF DEC 99 CHECK LIST QUESTION