Loading...
HRA 07/13/2000 - 632361 HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, JULY 13, 2000 MEETING 7:30 P.M. PUBLIC COPY (Please return to Community Development Department) r CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING JULY 13, 2000, MEETING, 7:30 P.M. AGENDA LOCATION: City Council Chambers CALL TO ORDER: ROLL CALL: APPROVAL OF MINUTES: June 1, 2000 CONSENT AGENDA: Consider Change to Interest Rate for Revolving Loan Fund .... ............................... 1 Approve Demolition Contract for Gateway East Properties ...... ............................... 2 Claimsand Expenses ...................................................... ............................... 3 ACTION ITEMS: Approve Contract for Exclusive Negotiations with Real Estate Recycling, Inc ............. 4 Approve Contract with Demographic Technologies, Inc .......... ............................... 5 INFORMATION ITEMS: Update on Request for Proposals for Gateway East ............... ............................... 6 OTHER BUSINESS ADJOURNMENT CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING JUNE 1, 2000 CALL TO ORDER: Chairperson Commers called the June 1, 2000, Housing and Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL: Members Present: Lary Commers, John Meyer, Pat Gabel, Jim McFarland Members Absent: Virginia Schnabel Others Present: Barbara Dacy, Community Development Director Scott Hickok, Planning Coordinator Grant Fernelius, Housing Coordinator Ryan Jendro, Home Remodeling Advisor Julie Vogel, Accountant Jim Casserly, Consultant_ INTRODUCTION OF RYAN JENDRO, REMODELING ADVISOR: Mr. Fernelius stated that Mr. Jendro started as Fridley's new Home Remodeling Advisor in April working three days per week Monday through Wednesday. Mr. Jendro works part-time for the Mille Lacs Band as a building official. Mr. Jendro has a degree in construction management from UW -Stout and has several years of experience in the construction field. Mr. Jendro stated that it is a pleasure to work with the Community Development staff. He looks forward to spending many years with the residents of Fridley and helping to make the housing stock of Fridley something to be proud of. Mr. Commers welcomed Mr. Jendro. Ms. Gabel asked Mr. Jendro what his hours were. Mr. Jendro stated that he works 8:00 a.m. to 5:00 p.m. on Mondays, 9:00 a.m. to 7:00 p.m. on Tuesdays, and 9:00 a.m. to 5:00 p.m. on Wednesdays. He can be contacted at 572 -3515. APPROVAL OF THE May 4.2000, HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES: MOTION by Ms. Gabel, seconded by Mr. McFarland, to approve the May 4, 2000, Housing and Redevelopment Authority meeting minutes as written. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 2 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA: 1. CONSIDER CONTRACT WITH CEE FOR 1998 HOME REHAB PROGRAM: 2. CONSIDER PARTICIPATION IN MINNESOTA SOLUTIONS FOR 2001 LEGISLATIVE SESSION: 3. APPROVE AMENDED ESCROW AGREEMENT FOR PURCHASE OF OLD CENTRAL AVENUE SITES: 4. CLAIMS AND EXPENSES: Mr. Commers asked about the additional expense for Performance Lawn Care. Ms. Vogel stated that it is the expense for maintenance of the lawns of the properties the HRA owns. MOTION by Ms. Gabel, seconded by Mr. McFarland, to approve the consent agenda with the additional expenses presented by Ms. Vogl. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: 5. CONSIDER CONTRACT WITH COMMUNITY REINVESTMENT FUND (CRF) FOR FRIDLEY LOAN PROGRAMS: Mr. Fernelius stated that this is a contract with Community Reinvestment Fund, the group that administers or services all the loans for the HRA. They are asking for a revised contract to administer the 5% revolving loan program and the deferred loan program. It is an involved task, including collecting all the payments on a monthly basis from the borrowers, maintaining all the loan servicing records, preparing monthly reports to the HRA, as well as providing the payments received. Mr. Fernelius stated that CRF is requesting a couple of provisions to the new contract which primarily increases in the rates. The set -up fee is the fee they charge in order to put the loan into the system. They are proposing a fee of $25.00. The previous fee was $15.00. The original contract with CRF was negotiated in 1996 with no changes since that time period. The monthly servicing fee will be changed from $4.50 per loan per month to $6.00. The payoff fee will be $25.00 per loan. A $1.00 per deferred loan per monthly charge is proposed also. There are several borrowers who have chosen to. make payments on the loan despite the fact that they can defer payment until they sell their property. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 3 Mr. Femelius stated that many of the fees were not anticipated in the original contract and so some things will now be in line with the types of services provided. The contract proposed will run from July 1, 2000, to July 31, 2002. Ms. Gabel asked if any of theses charges for the loans are passed on to the borrower. Mr. Femelius stated that the HRA absorbs all the fees. Mr. Meyer stated that there is quite a list of job descriptions that CRF do. Do they do them well? Mr. Femelius stated that they do. For the most part the City has had a good relationship with CRF, and CRF has been very responsive and good at collecting the payments. They have not had problems or any reports from borrowers of anything out of the ordinary as far as collections are concerned. This is a valuable service. Mr. McFarland asked if they had a number of defaults. Mr. Fernelius stated that they have had a number of defaults in terms of people late on the payments. CRF is responsible for working with the borrowers and getting them current on the payments. Those delinquencies, are provided in the monthly report to the HRA. Mr. McFarland asked if a fee was charged for delinquencies. Mr. Femelius stated that it is a flat fee equal to 5% of the monthly payment. Mr. McFarland asked what the percentage was for deferred loans. Mr. Fernelius stated that he believes it is 5% of the payments. Ms. Vogel stated that it is about $900.00 per month that the HRA pays for service fees. Mr. McFarland asked if that would increase. Mr. Femelius stated that it is approximately a 30% increase in the monthly fee for the amortizing type loans. There will be a slight increase for the deferred loans. Mr. McFarland asked if any loans are six months out in payments. Mr. Femelius stated that there are a few that are delinquent for that length of time. Mr. McFarland asked if they are still making payments of some sort. Mr. Femelius stated that they are. MOTION by Mr. McFarland, seconded by Ms. Gabel, to approve the contract with CEE for 1998 Home Rehab Program. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 4 Mr. Meyers asked if they give the new rates. Mr. Commers stated that they are contained in the second page of the cover memo. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 6. CONSIDER AUTHORIZING DESIGN FOR TH 65 PROJECT: Ms. Dacy stated that the City of Fridley received an allocation from the Legislature of $500,000 to be delivered through the auspices of the Department of Trade and _ Economic Development. The purpose of the funds was to assist the City in developing the designs for the improvement of Trunk Highway 65. The intersection work was completed on the intersection at Lake Pointe Drive and what is now known as Medtronic Parkway. This project would add another north and southbound lane through that intersection across Moore Lake up to the east and West Moore Lake Drive intersection. This is necessary due to the amount of increased traffic predicted in the next ten to fifteen years. Medtronic's campus is approved from an environmental standpoint to reach at least 1,000,000 square feet and they may go up to 1,000,006 square feet depending on their expansion plans. Ms. Dacy stated that the main bottleneck across thg causeway is the amount of through traffic. The people going through Fridley to and frorb downtown Minneapolis to the north clogs up the intersection. Adding the through lanes for the peak hour in the afternoon going northbound and southbound will help relieve the congestion. A soil boring analysis and a sheet pile wall design were looked at to contain the edges of the highway. Right now there is no pavement or curb. A sheet pile wall could be constructed as determined by SCH to contain the additional lane on both sides and the shoulder. The advantage is that they could install a storm sewer system or piping within the wall to direct the runoff to a treatment facility somewhere along the lake and probably in that area south of St. Phillips Lutheran Church. Staff recommends approval for authorization of staff to conduct a bidding process for the final design of the facility. They did attempt to make an application for federal funding and fell ten points short. They have gained the attention of MnDOT in the importance of the project and it is now included in MnDOT's transportation system plan. Ms. Dacy stated that if the design is done, the project will raise the importance of potential fundability from State and Federal sources. If the public hearings and drawings and engineering and details are addressed, they can tell MnDOT and the State and Federal officials that it is all set to go. Staff is asking for a motion to allow them to start the bidding process. The majority of the costs anticipated for the design work would be reimbursed to the HRA through the City via the allocation from the State. If the design cost exceeds the amount of grant funds received from DTED, that would be an expense to the HRA. There is the possibility of obtaining additional DTED funds. The total design fees are anticipated to range between $600,000 - $750,000 depending on bids from consultants. Because of the amount of fees, they should go through a bid process to make sure that they are making a fair choice. Staff recommends approval of the process to find the appropriate engineer. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 5 Mr. Commers stated that he thought this was to enter into the design contract with SCH. Ms. Dacy stated that the Public Works Director suggested going straight to SCH, but the City Attorney recommended going through a bidding process because of the contract amount. Mr. Commers asked if the cost included the bail wall and what is the projected manner of funding. Ms. Dacy stated that MnDOT or possibly federal grant funds would provide the majority of the construction funds. State or federal programs may require a local match for some .. of those funds, but #hey have not had the chance to evaluate and see what that amount would be. Mr. Commers asked if they are required to do this project if they do not get funding. Ms. Dacy stated that they are not required to do it. Mr. Meyer stated that the bidding process puzzles him. The process usually is for the City to issue RFPs, and then the RFPs are contained, evaluated, and three are selected for the first, second, and third choices. The City and the HRA would then sit down and talk about fees with the party. If they could not agree, then they would go to the second and then the third choice. Never should the amount of the fee be the primary reason for selecting a professional, because there is no way to evaluate them on the basis of the fees. Ms. Dacy stated that they want to evaluate a number of proposers and if the appropriate procedure is an RFP as opposed to the bidding, that is fine with staff. Mr. McFarland stated that an RFP reaches the same end with more discussion along the way. Mr. Meyer stated that with the RFP system, they are more assured that this process may have to take the low bid with a competent professional. Ms. Gabel stated that she would agree with that method. Mr. Commers stated that if they are going to authorize something they should do it through the RFP process. Ms. Dacy stated staff would do that. Mr. Commers asked for more information about the access closures through Highway 65 near Moore Lake. Ms. Dacy stated that there is a right lane only going northbound to the Shorewood Restaurant. That would have to be closed and the access removed. Southbound there is a driveway going from the St. Phillips Lutheran Church onto Highway 65. A HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 6 Mr. Commers stated that will be available for an exit. Ms. Dacy stated that is correct. Mr. Commers asked who owns those. Ms. Dacy stated that the abutting property owners probably have some access rights. Mr. Commers stated that there might be some damage to them. Ms. Dacy stated that the church does not feel it would be serious damage. The _ restaurant does have an alternate access to the frontage road on the west and east side. MOTION by Mr. Meyer, seconded by Ms. Gabel, to authorize design for TH 65 project and complete an RFP process. Mr. Meyer asked if the HRA selects the engineer. Ms. Dacy stated that the HRA would ultimately approve the contract. Staff would review the proposals and make a recommendation to the HRA. This would be on the future agenda. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Commers asked if they could get a summary document reflecting the amount of money they have in the property that Medtronic is developing for before, after, and since the sale for possible contingent costs that may arise in the future. Ms. Dacy stated that is possible. INFORMATION ITEM: 7. UPDATE ON GATEWAY EAST RFP: Ms. Dacy stated that another developer has contacted them as well, so they are expecting to receive at least two proposals. Two other developers could not respond. Mr. Commers asked if they have a back -up plan if they do not get enough property interest. Ms. Dacy stated they wanted to take stock of the reasons why they may not get enough responses. Based on that information, staff will come back with a recommendation as to how to proceed. If it is the size of the project, they may want to consider going over to the Frank's Used Car site again. That will raise additional process issues. 0 HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 7 8. INFORMATION ON HOUSING REHAB PROGRAM ISSUES: Mr. Fernelius stated that at the April meeting, a proposal to participate in the Community Fix -up fund was presented. This is a. program through the Minnesota Housing Finance Agency. The HRA's role was to help write down the interest rate. They were going to pay for a portion of the discount or reduction in the interest rate. MHFA and Metropolitan Council were going to pay the other half. The HRA committed a $50,000 pool of funds for the write -down activity. The HRA had concerns about the income limit and value of homes to be improved. CEE administers the program. Staff feels that it is important to continue on with the program as initially presented. Households with incomes up to $73,000 could obtain a loan at 6% interest rate. The HRA would - .- participate in helping to write down a portion of that interest cost. They would not be funding the underlying loan. Their money would be just a fraction of the total loan to be made. This encourages middle- income people to improve their properties. This would complement the existing program and this would allow them to leverage outside dollars. This would also service a segment of the market they are not able to assist because of the income cap they have right now. Mr. Femelius stated that, currently, they do not have a cap on the home to be improved under any programs. Staff feels that if a cap is put on the program, people who have a higher valued home on a fixed income with a lot of equity would not be included. It is also hard to pick a number for a cap. Values in Fdcgey have been going up for the past few years and the median home value of Fridley was about $110,000 in 1999 and the average sales price was $130,000. This is an eighteen -month commitment only and is a way of leveraging the dollars with this good opportunity. Ms. Gabel stated that she would like to see this continue and agreed with the cap position in today's market. Mr. Commers asked if the Housing and Rehab report contains any of these loans. Mr. Fernelius stated that the report contains all of the loans. It is for the HRA's 5% loans. It does not include any of the Community Fix -up Fund loans. They have not been making any of those loans and have held off until after these discussions. Mr. Commers stated they do have some community development block grants. Mr. Femelius stated that is correct. Mr. Meyer stated that he is opposed to raising the income limit to $73,000. They are not supposed to be trying to put another bath in the house or put another bedroom on, they are supposed to be improving the housing stock. For a unit that makes $73,000 to have to come to the public and ask for a handout does not do anything to improve the - housing stock of the City. The Hyde Park area needs improvement, but the program is missing improving the lower end of the quality of the housing stock in Fridley. Now they are rewarding the higher income people who have not seen fit to improve their own property unless they are being given public money to drive them to the bank. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 8 Ms. Gabel stated that she does not think that if they set an income limit, it will do anything to encourage or fix the program that is not addressing these other issues that they have the other program designed to meet. There is probably a lot of data reviewed in setting these guidelines. Mr. Femelius stated that the limits are based on 115% of metro median income for. 1999. MHFA has sinced raised its rate even higher. The HRA established the 5% program in 1996 and the $58,650 income limit was the 115% cap at that time and they did use that as the basis for establishing the guidelines before. They are trying to keep up with the times by raising the income limit. He respectfully disagrees that they are not assisting households. They are assisting many low- income households, perhaps not _ through the 5% loan program because some of those folks cannot afford a loan. They have block grant funds and other federal dollars that they do use to assist those families. There are parts of the City they have to focus on, and they are trying to encourage people to fix up the properties. Many improvements upgrade the livability and value of the house that benefits of the homeowner and the community. Ms. Gabel stated she agrees that $73,000 is a lot of money to her too, but she has faith in that limit based on the data collected and verified. She would like to see them leave this alone and see what happens in eighteen months. Mr. Commers asked how many of these loans - theyhave made. Mr. Fernelius stated that they did not make any loans at all yet. They could leverage up to 400 some loans. Mr. Commers asked what staff meant regarding the following text: " If the HRA feels that the income limit is still objectionable, perhaps it would be prudent to maintain the existing $58,650 limit in effect using the community fix -up fund program as a substitute for the revolving loan fund until the write -down funds are depleted." Mr. Fernelius stated that staff is suggesting using the community fix -up fund in place of the 5% loan program over the next eighteen months. They just write down the interest rate on the community fix -up fund loans and use that pot until they deplete the breakdown pool and then go back to offering the 5% loans. Mr. McFarland asked what the maximum loan amount is. Mr. Femelius stated that $35,000 is the maximum range. Mr. Meyer stated that this constantly takes the focus away from the facts that this program has failed from day one and is continuing the drift away from basic purposes and ignoring the fact that it is not improving the housing stock in Fridley. They need to find ways and other devices to get people in Hyde Park or other areas to fix up their housing stock. Ms. Gabel asked if he would rather see them go back to the $58,000 limit? HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 9 Mr. Meyer stated he is urging that they keep their perspective on this program and not increase the $58,000 limit. Mr. Commers asked if they could keep it at $58,000 and still participate in the program or set it at any number in between? Mr. Femelius stated that they have the ability to design the program as they wish. Mr. Commers asked if it is staffs idea to increase the income level in order to utilize all the funds. Mr. Femelius stated that the idea is to assist a different segment of the market that they have not helped before. Ms. Gabel asked if the MHFA has done research for this income level. Mr. Femelius stated that they have done research with communities to find out what they are hearing from people. He knows there is a demand in that income range. He does not know how many folks are in that range in Fridley. Mr. Meyer stated that if someone came to him from the HRA and asked him if he would like a larger loan at a lower rate of interest he would. say "yes ". If someone offers him a free lunch he would take it. Mr. Fernelius stated he thinks that is oversimplifying it. A lot of this is because the cost of rehab goes up constantly. The cost of construction is driving the need to increase the loan limits. A number of $35,000 loans have been utilized in their program. Mr. Casserly asked if this is the program that has variable interest rates at the State level. Mr. Fernelius stated that is correct. Mr. Casserly stated that part of the reason for the variable interest rates is that the State comes out ahead on the higher interest rate loans because of the low cost of borrowing. They ran some analysis of duplicating the program and if they stuck with a constant interest rate, it would be simpler to administer and easier to understand and it averaged out between the loans that would be going at 6 -7% and the loans that would be going out between 3-4 %. The program works at the State level. Mr. Commers stated they are talking about raising the rate buy -down from 5 -6 %, but this seems to be more of a qualification issue about the loan rather than the program itself. It comes down to the income level where the feelings differ. What is the average income in Fridley? Ms. Dacy stated that in the 1990 census, the median income was around $39,000 to $40,000 per year. The average on the loan recipients' income is $40,000 - $42,000. Mr. Commers asked what the income level was for the Hyde Park neighborhood. HOUSING & REDEVELOPMENT AUTHORITY MEETING. JUNE 1. 2000 PAGE 10 Mr. Femelius stated that it is less than the City -wide median. Ms. Dacy stated that it is a loan program with a lower interest rate than the market rate. The City does get the money back as opposed to grants. The HOME funds in the last six years plus the CDBG funds total up to $1,000,000 for lower income households that meet the federal income restrictions. The HRA has removed a lot of eyesores with the scattered site program. There are four in Hyde Park and at least that many in the Riverview Heights area. Mr. Commers stated that they could possibly make a compromise number on the _ income guidelines and increase the $58,000 by 5 -10% in the next year and a half. Ms. Gabel stated that she is more than willing to compromise. Mr. Meyer stated that he is, too, but they are trying to reach a new group of people by increasing these limits. That is a great puzzlement. They have not tried to reach the group that really needs this program. Mr. Commers stated that he does not know where the guidelines would be drawn to say who is in the group. The big problem is that they have not tried this program and they do not know how it is going to work. Mr. Meyer stated that they would just attract people with higher incomes. Mr. Femelius stated they are trying to offer that opportunity for people in that income range to get a 6% loan. They may make very few loans in that group, and it may be for the same group that they are serving right now. They are trying for flexibility more than anything else. They are not excluding people under $58,000 from participating in this program. Mr. Meyer stated they are trying to capture a higher income group of people. Should that be a great objective? Mr. McFarland stated that salaries have increased over the last few years. Do they really want the elimination of the higher income people to be detrimental to the whole program? Ms. Gabel stated they do attempt to reach people in Hyde Park. She thinks that people with a higher income with a $200,000 house really do have a valid reason economically to want these types of loans. Do they want to see those houses fall into disrepair? Mr. Femelius stated that the HRA did previously approve participation in the program. The HRA had the concerns about the guidelines. The program would be on hold until July. Staff will come back with a compromise number on the income limit. Staff was recommending the program continue the way it was set up. Ms. Gabel asked if there could be a way to have one income limit with a certain interest rate and then have another income level with a different or higher rate? HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 11 Mr. Femelius stated they could do that, but they like to keep things simple with their programs and offer one rate. It is also easier to administer and market. MHFA does that with different rates for different categories. They would need to sit down and look at that. Mr. Meyer stated that is probably the only way to get money into these areas. Mr. Commers stated that a lower interest rate might attract lower income people. He assumes that there may be some logical reason for that if MHFA is doing that. It does make the program harder to administer and harder to market. - Ms. Dacy stated that in Hyde Park there is a last resort program set up. It is an annual allocation for emergency or people who fall through the program cracks. This requires code improvements. There is the matching deferred program with the loan deferred at 0% and they provide up to $4,000 per unit. There are these specialized attempts and they did see a lot of activity. They could devise a grant program solely for low- income people. The question of the annual budget issue is if you want to use the money for that particular purpose or for other redevelopment issues. The beauty of the loan program is that in fifteen years they would try to get that self - sufficient so there would not be any responsibility for the HRA. _ Mr. Meyer stated that hardly anything has been done in the Hyde Park area. They should start with these programs where the housing stock is the worst. Mr. Commers stated that he is not sure if they could solve this problem. It is a very complex issue and in order to get the people to update the housing stock will be almost a complete write -off. This is a $50,000 commitment by the HRA, and it seems that there is no reason to attempt this. They could possibly set the income cap at $63,000. Ms. Gabel stated that she would agree to that. Mr. Meyer stated that the compromise proposal is fine. What are staffs plans to do something more for the Hyde Park area to encourage more participation? Ms. Dacy stated that they have surveyed the area twice, had focus groups in 1995, have four different sets of programs in that area, a scattered site program, and CEE publishes a newsletter on a regular basis. The rental inspection program is about to start the second time through every apartment unit. Ms. Gabel stated that the area is better than what it used to be. Ms. Dacy stated that the City has spent $1,000,000 on the 57th Avenue improvements, and the HRA has some money into that as well. The Werner's Furniture site has been acquired and the Frank's Used Cars is still pending. The Good Year development and the strip mall are controversial, but the properties look nice. They used funds from Home Depot to get the traffic study done and assess the property owners. 3 HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 12 Mr. Meyer stated that the best efforts just are not going over with the residents to date. Do they write off the Hyde Park area housing stock -wise? Ms. Dacy stated that the HRA has made an impact and there are issues about the cost of the housing. She agrees with the concept of assisting low- income people and the housing stock. They have made progress and can look at the HRA creating a grant program. Mr. Commers stated staff should continue to look at some programs, but the next alternative is grants. That seems to be like they are getting down to the bottom line alternative. Can they authorize this program with the commitment of $50,000 allowing _ Mr. Femelius and Ms. Dacy to see how it works with an income cap level of $63,000? Mr. Femelius stated they can do that. Mr. Commers stated they have the housing report. He thought they used to also receive the delinquencies. Mr. Femelius stated that he does give the delinquencies. Last month there was a glitch with CRF's system so they were not able to provide a report. 9. UPDATE ON SALVAGE YARD REDEVELO MENT: Mr. Commers stated that everybody should have received the proposed contract with Real Estate Recycling, Inc. Ms. Dacy stated that the contract was prepared and they are suggesting that the HRA look at two things. One is to approve the resolution to authorize the contract and to authorize Staff to start work with an appraiser. They can certainly wait until July if the HRA thinks that is too much. Ms. Dacy stated it is necessary to redevelop certain properties on the north and south sides of 73`d Avenue in the general area between Highway 65 and Central Avenue. The goal is to create 245,000 square feet of new industrial building space. Paul Hyde is the interested redeveloper from Real Estate Recycling, Inc. He was the developer on the Onan- Murphy Warehouse project and specializes in contaminated properties. He had done some preliminary site plans and 245,000 square feet was a conservative estimate. There could be more in the development. The project area on the north side of 73`d Avenue includes three salvage yards and two more to the north at 73 Y2 Avenue. The 9%2 acres include the salvage yard area and immediately to the north on 73`d a little business called Limpro. On the south side of 73`d Avenue, Determan Companies has approached the City because they are expanding and evaluating other sites in the metro area. They want to investigate potential new construction opportunities here. They have also purchased the building on the north side of 72nd Avenue. Also affected would be a multi- tenant building in the southwest corner of the intersection. The south half is about 11 acres and the north is about 9%2 acres. Ms. Dacy stated that they have not finalized all of the properties. This is the general project area. Paul Hyde has a track record in Fridley with the Onan - Murphy Warehouse I HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 13 site as the developer. He has put together State grant applications for the pollution clean -up funding. They specialize in brownfield sites. They have handled two superfund sites and handled two areas in Wisconsin. They have managed all aspects of the project. The economy and industrial markets are very good, and they do need bigger move -up space for some of the smaller industry in Fridley. There is a great diverse industrial base with existing businesses in spaces that are 10,000 to 20,000 square feet. They agree with the developer that there is a demand for move -up space of 30,000- 50,000 square feet. Ms. Dacy stated that grant money is available like never before from Metropolitan Council and DTED. Minnesota is a good state to do these types of projects because of- - what the State offers for protection via the MPCA in terms of liability. The project would improve the area's image, remove some outdoor storage areas, as well as create new jobs and tax base. This project is financially feasible, and staff is suggesting that if this is done, they establish a new tax increment financing district. Ms. Dacy stated the Murphy -Onan Warehouse project enables them to use some funds from the existing tax increment district to help offset some costs. They are assuming a budget of up to $3,000,000 of state and regional funds. They will negotiate with the redeveloper to negotiate land sale receipts or revenues after the site is cleaned. The cost would approximate about $9,600,000 including a lot of assumptions. There is a 10% contingency and that is almost $900,000. Forgevenues, they used the present value of tax increment from the new TIF District equaling about $4,300,000, land sale revenues, and about $3,000,000 of grant funds. That came up with $8,300,000 leaving a deficit of $1,200,000 approximately. That is where the TIF #9 comes in, and they are anticipating that they would have $2,000,000 in present value in increment from TIF #9 to offset that deficit. Ms. Dacy stated they do not know the extent of contamination, relocation costs, clean- up costs, exact appraisal, and acquisition costs until they get out there and start talking to owners. In general, the contract states that the redeveloper would be responsible for negotiating with the owners of the properties. The HRA will work exclusively with Real Estate Recycling for approximately one year to provide time to work with the owners. The next step is grant applications in November of this year. Ms. Dacy stated that the contract states that they would attempt to negotiate a redevelopment contract by next year. After they find out more information about the environmental state of the acquisition, they may have to go back to the HRA and revisit the feasibility of the contract. The contract merely states that they will cooperate in further investigation and negotiate in good faith. Mr. Commers asked if the HRA could get a copy of the budget to see how the numbers are derived. His initial impression is that the HRA needs additional information to determine the feasibility. Should they determine what is on that property and get phase II started right away? Is it the intention of Real Estate Recycling to purchase those properties? Mr. Casserly stated that is correct. There would be contingencies on the appropriate environmental aspects; and, as part of the purchase agreement, they would have the HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 14 right to test. If there were problems, the cost would be assessed and then negotiation with the sellers would take place. In this case, with a half a dozen different orders, opportunities and options can be explored. Real Estate Recycling seems to be very knowledgeable with environmental issues. They do not proceed unless they get a no- association letter from the MPCA. The letter says that people involved in the clean -up shall not be responsible before the contamination is cleaned up. Any sampling plan would also be approved by the MPCA. A response /action plan would then be prepared. At the end, they would want to have a letter from the MPCA indicating that they had applied and followed procedures. They really do not know all the costs involved. In the event they cannot proceed, they need to know what their exposure could be. It is very important to start an appraisal process. The contract also states that Real Estate _ Recycling is spending its funds to develop this. When they go ahead and purchase properties, the HRA would reimburse them for costs over and above an appraised market value site. Mr. Commers asked what input they have regarding the cost-for the land. They have the biggest exposure so they should have some input. Mr. Casserly stated that is why they need to start an appraisal process. Mr. Commers stated that they need an environmental assessment process. Mr. Casserly stated they will always have the right say "no". Inherent to these agreements is that they will have a contingent process upon approval of HRA funding. Mr. Commers stated that once the appraisal is determined, the negotiation can start. Hopefully, they will then have a better grasp on the unknowns. Mr. Casserly stated that oftentimes property owners feel they have little, if any, contamination problems. That becomes a condition of the purchase agreement to have the right to go in and do all this testing. This will give them the opportunity to do that. Many property owners are not particularly interested in having tests run. Ms. Dacy stated that the owners may not be motivated to talk to us without some type of discussion on acquisition rights. They do not have the legal right to go in there and ask for a Phase II assessment. Mr. Commers stated they do on the salvage yards Mr. Casserly stated that they can go in with a modified procedure, but the goal is to try to do as much on a cooperative basis as possible. They were trying to address the real issue. In one instance, there is an opportunity for relocation issues. In another instance, there is an opportunity for someone to relocate within the site to have better exposure. It just seemed like there was opportunity to do those kinds of things. Mr. Commers stated that he would expect the problems would come in acquiring the properties south of 73`d Avenue, because those are active businesses. Mr. Casserly stated they are within the project area 0 HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 15 Mr. Commers stated that may not be a good reason to take their property. Mr. Casserly stated that in terms of a. redevelopment program, he thinks they would not have the difficulty including them. They are part of the overall project and probably would qualify for a redevelopment tax district. Ms. Dacy stated that the environmental goal of clean -up should not be overlooked. She believes that it is public record that there is testing going on a property right now. They do not know about the salvage yard properties. Another goal of the project is to make use of these funds to analyze the issues and address them. Is this under the - .. redevelopment statutes? Mr. Casserly stated that was correct. This is inherently a complicated project; and just because of the size and condition of the parcels involved, it will take time to piece this together. He is not sure that the finances are going to work for it. Clearly they have the resources, but it does not appear that the HRA would want to utilize all those available resources to make this project. Additional funds may become available in that tax increment district. Mr. Commers stated that he would like to see the preliminary analysis so he could look at it in budget form and then he could bring any quokstions he may have. Mr. Casserly stated that he could look at page 3. Mr. Commers asked about the rehab appraisal on the Onan - Murphy property. Mr. Casserly stated that between the land and the building together, the estimated market value would be $14,200,000. They took the tax increment and future value and brought it back to the year 2000 dollars. They are assuming they will have DTED grants and Metropolitan Council grants. The sources are at about $8,300,000. They had to - pick some numbers for land acquisition numbers. Building values were doubled. This project is large enough that the HRA would probably have to sell some to finance it. The total uses come up at about $9,600,000. A deficit is being shown right now at about $1,300,000. They suggest making up the shortfall by using part of the revenues to support a bond issue. This is not anything to start moving on without knowing a lot about it. Mr. Commers stated they have to be careful. Mr. Cassedy stated that the concern is not the environmental cost. This is industrial land to be reused as industrial businesses. There is more funding becoming available. The real concern is the acquisition costs. Mr. Commers stated that when they start adding south of 73`d is when they put themselves at risk. That is where operating businesses are. Ms. Dacy stated that the majority of the ownership of that land has expressed an interest to the City of potential relocation within the project area or elsewhere. They are HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 16 still evaluating options and will come back for an update. They need to start somewhere to determine if the project will work. They feel from a success standpoint of creating a business park, it is better to do both sides of the street and will make an impact on that particular area. They may not need to acquire property on the south side if they decide to stay, and would agree to enclosing all the outdoor activities inside a building. They could potentially see that it can work. It is to their advantage to do that. Mr. Commers asked if she meant putting the tanks inside some kind of structure. Ms. Dacy answered in the affirmative. Mr. Commers asked what has to be appraised. Mr. Casserly stated that is an issue they need to sort out with staff and Real Estate Recycling. A proposal was given to us for most of the properties north of 73`d except two parcels. Some of those properties have different uses that require different analysis. Mr. Commers asked if they are all being used in accordance with the property zoning. Ms. Dacy stated they are as far as she knows.. Ms. Dacy stated that staff should maybe come back in July with a more specific proposal. Mr. Casserly stated that at this point it would be more prudent to be more specific. Ms. Dacy stated that the clock is ticking in terms of the appraisers billing us. She wanted to get the HRA to agree to it being acceptable to them billing us. Mr. Casserly stated that they want more clarification on Phase I analysis and also on the series of parcels. They also want to look at parcels that were not included in the original listing. Mr. Commers asked if it was possible that Mr. Hyde could talk to the parcel owners identified in the appraisal and see if they can do Phase II from an environmental standpoint. Mr. Casserly stated there should be some contractual agreement with Real Estate Recycling group. He expects all of these to be well negotiated, and Ms. Dacy and Mr. Femelius will need a lot of time. Ms. Dacy stated Mr. Hyde has approached these cases with the attitude that it is a clean site contingent upon more analysis of study. The City Manager and City Council are very concerned about any redevelopment project and the impact on existing businesses and how that is approached. They would prefer the approach Mr. Hyde is suggesting with the parameters as identified by the HRA. It will work better in the long run. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 17 Ms. Gabel stated she is very concerned about the clean -up costs and money available. Ms. Dacy stated they will have a better idea of the clean -up costs after they find out from the owners and conduct the Phase II testing. Mr. Hyde conducts those tests and hires the consultants to analyze them and prepare the action plan. It may depend on the types of contamination and telling the owner they have a problem to take care of. The funding is allocated by the legislature to DTED and the Metropolitan Council. It is the same funding sources used for the Onan- Murphy Warehouse. They are available twice per year with application deadlines on May 1 and November 1. All the testing and analysis should be done prior to November 1. If they do not get it, then the HRA gets to come back and revisit the project. There is nothing in the contract for exclusion of _ negotiations that commits the HRA to doing the redevelopment project. Mr. Casserly stated that is correct. Ms. Dacy stated that all they are doing is working with the developer, assigning types of responsibilities, and establishing a time frame. Mr. Commers asked what would happen financially if they do not decide to do the project. Mr. Casserly stated they would be responsible for tke appraisal. The company would be responsible for environmental testing, negotiations, grant preparation, and other issues. Mr. Commers stated that in July they could come back with more information. As far as the appraisal, there is no reason to forgo that, and it is a critical piece of information. In addition to the appraisal, they would need a relocation number. Mr. Casserly stated they need to identify relocation costs. Mr. Commers asked what the responsibility of the owners is in regards to approval. Ms. Dacy stated that until they have more information, staff does not have a position right now. In Andover, Mr. Hickok interviewed the City Administrator, and learned that the ability to take on the clean -up of the salvage yards there was a leveraging piece in the negotiations saying that the City would take care of that. Mr. Hickok stated that the City of Andover took over that responsibility. He stated that Mr. Hyde goes in with a good understanding of what he would find in a salvage yard. This is his forte, and he can make a far more accurate assessment than staff. Mr. Commers asked if they would have to pay more for remedial than the reduction in purchase price. Mr. Hickok stated that it is all in negotiation, and he would hate to speculate. It really i�; complicated depending on the owners knowing the extent of contamination and the buyer knowing what it is going to take to clean that up. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 18 Mr. Commers stated that he thought they could use some of the City of Andover's experience, but they are still trying to figure out that they have to pay more than what they got at a reduction. Mr. Casserly stated that is correct. They did the analysis several years ago on what revenues they had available. They do not have anything approaching the kind of problems they hit. They were piling a lot of stuff. This is far more traditional. Mr. Commers stated that for the July meeting, the HRA should look at the budget and get more information and get something going to try to make a decision. Mr. Casserly stated they need more discussion on which parcels they want. This is an agreement to go ahead and do more analysis. If the HRA members are comfortable on approving the agreement and approving the maximum amount of the appraisal, they could do that tonight. If the HRA wants Staff to find out more, they can do that too. Mr. Commers stated that there needs to be changes to the exclusive contract they talked about. They need the appraisal, and he does not see any harm in doing that. Mr. Meyer asked if they need to do more work on the relocation costs. Ms. Dacy stated they would have to investigate a r location consultant and come back in July with some estimates on that work as well. .,Hyde can attend the meeting once the issues are ironed out in the contract. Ms. Dacy asked if they could start with the appraiser. Mr. Commers stated, yes. Mr. Casserly stated that they need to go back and see specifically what those sites are also. Mr. Commers asked if they were on both sides of 73`d Avenue. Mr. Casserly stated that was correct. MOTION by Mr. Meyer, seconded by Ms. Gabel, to authorize an appraisal up to $23,500 for parcels to be identified by staff. UPON A VOICE VOTE, ALLVOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 10. UPDATE ON JOINT COMMUNITY TASK FORCE: Ms. Dacy stated that the June 8 meeting will not work out so staff will be sending out another letter. At the last meeting, Ms. Schnabel raised the issue of a Medtronic's representative attending the meeting. They are evaluating the appointment of a staff person to attend the Technical Advisory Committee. e HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 1, 2000 PAGE 19 ADJOURNMENT MOTION by Mr. Meyer, seconded by Ms. Gabel, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE JUNE 1, 2000, MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY WAS ADJOURNED AT 10:25 P.M. Respectfully submitted, Si ne L. Jo son Wd Recording Secretary a HOUSING AND REDEVELOPMENT AUTHORITY Memorandum DATE: July 7, 2000 TO: William Burns, Executive Director of HRA R FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Consider Change to Interest Rate for Revolving Loan Fund Since 1996, the HRA has charged 5% interest on loans originated under the Revolving Loan Fund. This program provides home improvement loans up to $35,000 to homeowners with incomes up to $58,650. Over the course of the past few months staff has been evaluating increasing the interest rate on the Revolving Loan Fund. Staffs proposal would be to increase the rate from 5% to 6 %. There are several reasons for the proposed rate hike: 1. Help off -set the additional loan servicing costs that will be charged by the Community Reinvestment Fund (CRF). Currently, the HRA pays CRF about $830 per month to service the Revolving Loan Fund portfolio. This equates to about 3% of the interest collections. Under the new loan servicing agreement, the compensation level will increase to roughly $1,110 per month or about 4% of monthly interest collections. 2. The discount loan program that was approved by the HRA at their June meeting also carries a 6% rate. From a practical standpoint it will be easier to keep the programs streamlined and offer one, uniform rate as opposed to two rates (e.g. 5% for households under $58,650 and 6% for households between $58,650 and $63,000). The 6% rate would still be lower than market rate loans, but would remain attractive to potential borrowers. The rate would also be 2% lower than MHFA's Fix-Up Fund program. Recommendation Staff recommends that the HRA authorize an increase in the interest rate on the Revolving Loan Fund from 5% to 6 %. The action should be approved by resolution and a copy of that documents will be made available on Thursday evening. gf M -00 -123 1 HOUSING AND REDEVELOPMENT AUTHORITY Memorandum Date: July 7, 2000 To: William Burns, Executive Director of HRA� From: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator Ryan Jendro, Remodeling Advisor Subject: Summary of Demolition Bids for Gateway East and Scattered Site Properties On June 12, 2000 staff received three bids for the demolition of the Gateway East sites (Cash n Pawn, JR's Automotive, and the Duplex) and two vacant houses (5297 Lincoln Street and 630 Ely Street). Below is a summary of the bids that were received: Dirt and Demolition, Inc. $49,941 Minnesota One Construction $48,090 Kevitt Excavating $39,417 The lowest responsive bidder was Kevitt Excavating of Crystal with a bid of $39,417. The demolition work should begin later this month and be completed sometime in August. Recommendation Staff recommends that the HRA accept the bid from Kevitt Excavating for $39,417 and authorize the Chair Person and Executive Director to enter into a contract for said services. gf M -00 -125 H E. 16 I O O r r Ch Ch 0000 O O N O N 00 N O N 00 H r V 1 0 00 00 I! 1 In N N 00 O I U 10 1 00 H H r r O O O O in In mom 0 0 M O M N N In m N V• 10 10 00 r r H H 00 140 9C g o o In In of In m Ic v In a a mom .+ .i mom Men v .+ n u1 ,� .� o o co m m rn o 0 W I u IQ o o N N r H a• H a s In M 0 -W V I In In 0 r r r 0 010 N In In N H H M M 00 6 I i 0 0 O M M V' H H 0 0 H H N N 10 m r H a V' H H 0 0 a E+ I HH H as H rim In In H H I q' V aa I W 000 0 00 0 00 0 000 0 0 0 0 0 ' >• I o 0 0 000 0 00 0 00 0 000 0 0 0 0 0 000 O o 0 0 0 0 0 0 0 0 0 0 O 0 0 a l N N N NNN ry N N N N N N N N N N N N N N I W 1 \ \ \ \\\ \ \\ \ \\ \ \ \\ \ \ \ \ \ I a I b <0 b 10 l0 t0 �0 10 10 10 10 10 \0 10 \0 10 0 o a 0 10 000 0 00 0 00 0 000 0 0 0 0 0 1 I i 0 .a N x V Q W V Z E U O .H+ �+ W F uWl U O CD Fw 0 w 0 a In w w ~ ea o U H m 0 W ul � a o o y u m M O rn a o 0 o W G I i •% i rid H H H a w W hl a C. �Jwi ' ?wj. w �J w+ m P w N N I I H I N rn r r_ r rn ''7 N v H H \ I I r I I O I \ I r ' 0 99 O 0 O 0 Nr °a w F ' zz W z2 F iCUaI� rA o UV U £•°E EE EWI FrWnU 0 o >• o f I zzz on U ❑q E pUq O Iz-I PC N ' ' alta W as al Wa 99 99 u) Wkcnx w F 'r g z x r yF I I H W a l0 Ol W W N W Haa MF H a a a N rV W HH a r MM 9G o I I I NU o c14W C4 E- Z E. HW oW W Nz 0WW HW InWW W HW H\ N H NO] RUC \ I a l z l MI-I c M0 M•j2 .Zt Q2 Hw In roa w in r4 �z oZ 2 HW mro of %D 'a 41 u 0' yW^Oy 1 E" ' H W H W W HE££ 2 GO U GC Hr7D 199 -17ri D�7 C7 ul O 2 a O I ' I M I w a .+ a s a s a a a a z W a F £ \ a l I a i H w a s w a s a 0.44 q w r-I a a l I u w a g 00 w o0 0 000 a a o 9999 a 9999 a 9999 o ., w a w aaa w as o 9999 a aaa w o w w I q l a a c9 r, c9 a 9999 u 9999 a aaa as q q a O I -' p H I I (y ry 1 1 i F. r, a a lil EWf EW] c9 fa O H a a w ~ w ° a w w ° o o o 1 z �I xlW1 l ' a rn F W g o 9400 H o W a IX 0 o q 000 \ W o rn N o Ui I O 0 00 o £o 0 0 0 0 o 0 0 0 0 o a o z o 0 o O o 0 o 3 0 N o U N 0 >IO O O O 0' o 0 0 7 N FNNN N > I F 0 M N O N \ N N N C4 N Im N N N - N \ \ W\ a O I a l a l m aIn FIn rlrr I� Ln £In In as £MM r4 W MMM I� H W m Or rn In aH a l q I H N N N N N N J 4 0 0 0 q H N N % N 3 N N N A 4 0 F ry a H p N q M \ \\ O\ V \\ N\ V \\ "I a \ \\ O\ 'L\ a\ U\ M\ ep I I I N In In aLn °In In In zg\O •1010 a10 •1010 MID 0101010 g10 a%0 °10 ° In c4 In ' ' ' ' £0 Zo Uo £000 40 I-l00 ru0 I-l00 £o x000 990 Uo U0 ao ao IT, a E. ' a l I O O HIM N H M 0 0 0 V I o moo w O r 0 0 m 0 4 0 0 0 NO M O VIN M 0 w r O P I .YI W I I m M m M m M m V' V' a m H m o o m o 4 0 0 m 0 4 0 0 0 O1 H 01 H ON M 0% H I n 0 O I U pp I M I M I M I M I I I M I M I I M 1 M I I M I M I I I M I M I M I M I M I O I W £ I rM rM �M rMMM r11) r rr rH rrr rN rHM'C x111 rIn rM r In rH i i N a N V' N a N V' a -0 N p N H H N w N N N N O N 000 N '0 N 'w N C N a N a r 0 z I I I O O o 000 O In m N 01 01 01 m Ol m O O O O O O U) M I I I M M M M M M M H H w H H H H H H M M M M M Ina I ' I V' C' a 77 'CI N N M N N N NNN a a v d1 991 0(90' i I o0 00 oo 0000 00 000 oo 000 00 0000 00 00 00 00 00 ]C o 0 0 0 0 0 0 o O o .0 .00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 co 0 0 0 000 0 0 0 o 0 0 0 0 0 0 0 0 040 0 0 W i1 I V F I I N O N O N O N 0 0 0 N O N O O N O N O O N O N O O O N O N O N O O N O W' w a' O I \ I \ I \ I \ I I I \ I \ I I \ I \ 1 1 \ 1 \ I I I \ I \ 1 \ I \ I \ 1 WWW a I g I U I r O r U) r N r O m H r H r N N r O r N N r N r N N N r H r r r H r m r O a V q l U I 0 0 O In O l0 0 0 1 0 o 0 0 10 w o 0 0%0%0 O \O 010 10 10 0 0 O 1D 0 0 010 01 0 w °N I I a I \H \V' \N \HVI to \In \NN \H \NN \N \NNN \In \N \In \V' H aaa I I r r r r r r r r r r r r r r r 9999 I I I o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 F-11 N E I « E. 0 I o0 N ON m o 111 O m mo o Ln Ln o O mm a'o a 00 mm 00 N O I 00 ..f OM O V'H O m m0O ww 99 mm N r m m m W p , £ mm mom MNo o w r1 Ln Iff In 111 Ln w%a Al U1r N N 00 00 n W I U I NN 000 H mcn c4 H mm H H mm N Nm w m111 mm m a i m m r1 N H H w O H N m H H H H a s H H O a E mm ChmH m HH NN 111 m I I W , 0 O U x o co o 0 0 0 Soo o 0 0 o 00 0 0 0 o 00 0000000 0 0 0 00 0 0 0 m'\ I o 00 0000 0 00 0 0 0 0 0 0 0 0 N N N N N N N N N N N N N N N N N N I W I \ \ \ \ \ \ \ \\ \ \ \ \ \ \ \ \ \ 0 I a I w ww '0 wwwwww w w w ww w w w 0 00 0 coo 0 00 0 0 0 0 0 0 0 0 a I I a , I F O yt I E' W .a o W w o W W E o f1 m m m E- 4 A O H H H 0 2 n r m x m V i O O O y n M m H C I H I ££ .� O o 0 0 a w to o' I p l H H H H H H H w C7. O 0 0 x F v o� > � WW rnnrrrr m o 00 U 4 m 0 I z ON w w m m m m m m m N N N N O U r i N I H I m Q Q m m m m m m m w in m m a m m \ I q n O \ I n m Q o H a F zz Q a m m x Wy o f a w rN m Ho 114,14 s U mwrn mm y U) aEF w a. aa wwwwwww m m vW W W H u u V U U U U w W dF m W W HHHHHH C o o£ H N m w0 (D m m om Oa O z m l O W W H » » »> H H H H H',!.' N'j. mm WWWWWWW w W r.3 WW IFi OH Ha as Ca ryl t!)u1 m CO W W H HH m O I >, H, z .4 .4 W W F E+ E+ y 4 aQ 4 0 U : i am °a °a a as W H HH 94 U H M pw m , a::) w u a P4 0 wWwww a m Q m x a N a a a a a m a m E o o u M can > w a F u yy I I d F r Z y H F E- E. I 1 H z W m H a F w £ 7 o � z rn rxa�i o o a°c w w �' w E W i 9 o a O O 00000000 m O 0 2 0 moo o x o > o .40 £ , OC OO ccoo z0000000 f/�o ao W o W oo Uo n pp0 a p o 0 0 0 0 0 0 'a o F o 0 0 o O o q o a o £ %n ' W I i'N aNN '� NN NNNN N N pN EN F NN aN N aN CO a a O' \ m \ z \ w a I E 1 a m £ n r w \ a „1 CO w�� Q Hoo 0000000 .H70 £o Wao Cd oo 0 3o Oo W I a I I 1 C4. r o m o o m 0 0 0 0 0 0 0 co Ho NW m m m a o 00 w o o Q x W, , m o m o o m m m m t+l ,+1 m f'1 o m a H o m o t�f P1 o a o m o m o ,47. I u I i r1 I ,.1 I I ,.: I i , I I I I a, a I a I a I I a, a I I o I W I I ro r rr rn1n.+1P1.P1nf n1 rH1 r m r�1 r�1e+1 r,n nm r� \ a g l r� N o N H H N a a v a a a a N a N a N a N a a N a N a N a n mm o0o00o0 0 0 0 0o 0 0 0 N H H P1 r+1 e+1 ,+f l+f PI ,+f r1 n r1 of Al n t+f r+1 �£m -,� I a I H NN aavvV'aa w v a as a a a 1 , , I I 1 1 1 1 1 1 1 I 00 X� I I o0 000 00000000 00 00 00 000 Oo 00 0o 00 000 00000000 00 00 00 000 00 00 00 W] , x W I,7, o 0 00 0 00000 0 00 00 00 00 0 0 0 co 0 0 co w N I u E, N O N O O N O O O O O O O N O N O N O N O O N O N O N O a� W, W a, O' \, \ I I \, I I I, 1 I \ I \ I \ I \, I \ I \ I \ I a qIU rr rNN roommmHr ro rH rm rmm rH rm no a qiv UI ow oww 020 0 m w o w 00 \ o V' \ O %a %D \ o m o co N \ N N \ H H a a a m a \ m 0v \ a \ H aaa r r r r r r r n r n a a W I I , O 0 0 O 0 0 0 0 O O I m 1 1 1 1 1 1 1 1 1 1 wa 1 4 a 1 I 1 1 F 1 1 a 1 I 0 1 1 a 1 1 w 1 1 a 1 1 1 1 I 1 1 1 1 1 1 M N O H O O O N m N N N N. O b N 1 1 M 01 O rl O 01 O O m 01 N r r O 01 N N O N O M 0 b b M m m m O N b I 1 V m N v O O N M O m N M M o M '1 1 1 N N m N 1 b b N 1 01 V� V N r V I F an n ui .i Iw ui ui Ni a i N .+ o 1 M 1 r1 1 1 1 1 W 1 a 1 1 F 1 w 1 h � 1 0 1 1 a 1 1 a 1 � 1 w o a w F uJ z p 1 I M F U O .] F I a4 IQ ru W 1 1 a [r a 1"' pEy. t� C7 7., 7.. > > W rk O ,►17 ' 1 a Ir o 0 4 Z Z F F a a a W 1 0 0 a >I w a a W z z w l p w S w o O F £ a 0. .+ .+ N W w W a a 0 ci 0 O O O O 0 F F: N N N N N N (Q rj) cell 3 °u °u it it y� i+ 'r >. 1�1 •7a h 2 3 3 w t ° a F F a O 1 1 x 1 1 N 1 1 0 0 0 o O O O O O O O O o O O O Q 1 1 1 1 1 1 1 1 1 i I 1 1 1 1 1 1 1 M 1 1 O N O N H N N O O N N M M N O N a 1 O a to 1 .A O ei b b N O O - i a a P - Q [ti I 1 r N r N N N m r r N N O O O N O PI 1 1 N b N b M b M N N b b V n NI 10 1.1 M 1 1 r1 M ri M M M M .-1 rl M M a a Q M 7 W 1 1 1 1 1 1 1 1 1 1 1 1 1 I 1 1 1 1 U 1 0 1 O O O O O O O O O O O O O O O O W 1 U I O O O O O O O O O O O O O O O O a 1 V 1 O O O O O O O O O O O O O O O O 1 1t 1 O O O O O 0 O O O 0 O 0 0 O O 0 x 1 1 1 1 1 1 1 1 1 I 1 1 1 I 1 1 I 1 1 N O M O 0 O N N r N r N r N O N 1 1 N O N O O O b b b b b b b N O N 1 1 a N H ei N •i N N N N N N N Q 11 7 I 1 w I 1 1 1 1 w l 1 a l 0 1 1 t, O 1w 1 U i 0 0 > > > 1 W P 1 a 1 b b b b b r r r r r r r r m m T M 1 1 14 H 14 1-1 H H r4 H .4 eel m r4 M M M M M M M M M M M M M M M H H .-1 .4 0 ".1 1-1 0 w 1 p, p, a 1 O O O O O O O o O O O 0 0 o V .6 O U O W 1 w 1 o O O O O O 0 O o o O O o o N o 07 O y o a 1 1 p o 0 0 0 0 0 0 0 0 0 0 0 o W o W O W O 1 Q N 1 N N N N N N N N N N N N N N N N N �J it it 1 1 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ ,:3 2 iQ Q� 1 V> z 1 OI 01 M m m M 111 M M M M M M b b O b M M 1 0 1 O O O O O H rI H M H e4 '1 r4 1-1 N N O ei a Q O 1 M 1 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ w b 10 b b b b b b w b b b b b b r£ f� a F F 1 pa. 1 o O o 0 0 0 0 0 0 0 0 0 0 09 o x 09 pppOW uu�Wil6 � 06 i O 0 0 0 0 0 O o 0 0 0 0 0 0a 0a oa art5�a 1 z 1 0 0 0 0 o O o o O o 0 0 0 00 00 08 P 1 W 1 m N M a N b r m 01 0 1-1 N M a N b (II {II 1 1pZM�; Q 1 14 m Iii e4 r� zaa o inn 1 (r f� t0 M OLn F N 0 0 80 HOUSING AND REDEVELOPMENT ® AUTHORITY Memorandum Date: July 7, 2000 �'% To: William W. Burns, Executive Director09° From: Barbara Dacy, Community Development Director Scott Hickok, Planning Coordinator Subject: Resolution Authorizing Execution of Contract for Exclusive Negotiations BACKGROUND On June 1, the HRA reviewed a proposed Contract for Exclusive Negotiations with Real Estate Recycling Inc. The Authority requested that the developer be present at the July meeting, and that staff follow through on any concerns identified by the Chairperson. PROPOSED CONTRACT FOR EXCLUSIVE NEOTIATIONS Staff has followed through with the changes requested by the Chairperson, and the proposed draft is attached for the Authority's action. Paul Hyde from Real Estate Recycling Inc. will be in attendance next Thursday evening. Mr. Hyde is well qualified since his firm specializes in redevelopment of contaminated properties (Murphy Warehouse and Cummins project is a recent example). As the Authority has done in the past, staff is suggesting that the Authority enter into a Contract for Exclusive Negotiations with the developer. The Contract would establish that the Redeveloper, Real Estate Recycling Inc., would negotiate purchase prices (including relocation expenses), conduct environmental testing, prepare grant applications, and prepare preliminary development plans. The Authority would be responsible for assisting the redeveloper with application for grants, reviewing zoning and land controls to determine their impact on redevelopment of the site, and reviewing the Authority's ability to exercise eminent domain in the event that parcels cannot be purchased. The Contract would not be assignable and would terminate in June 2001. Prior to termination of the agreement, the development contract would also be negotiated and would address all of the issues involving the development of the project. RECOMMENDATION Staff recommends the Authority approve the attached resolution that authorizes execution of the Contract for Exclusive Negotiations with Real Estate Recycling Inc. BD:Is M -00 -121 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A CONTRACT FOR EXCLUSIVE NEGOTIATIONS BY AND BETWEEN HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY FRIDLEY, MINNESOTA AND REAL ESTATE RECYCLING, LLC BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of 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 enter into a Contract For Exclusive Negotiations (the "Contract ") with Real Estate Recycling, LLC (the "Redeveloper"). Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted a development program known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program ") pursuant to Minnesota Statutes, Section 469.001 et sea. 2.02. The Authority hereby finds that the Redeveloper is proposing to redevelop real property located in the Redevelopment Program area (the "Site ") in a manner consistent with the objectives outlined in the Redevelopment Program. 2.03. The Authority hereby finds that the Redeveloper has requested that the Authority negotiate exclusively with the Redeveloper in an effort to execute a Redevelopment Agreement relating to the Site. Section 3. Authorization for Negotiations and Contract Execution and Delivery. 3.01. The Authority is willing to negotiate exclusively with the Redeveloper in an effort to execute a Redevelopment Agreement relating to the Site. The Chairman and the Executive Director of the Authority are hereby authorized to execute and deliver the Contract when the following condition is met: Substantial conformance of a Contract to the Contract presented to the Authority as of this date. Adopted by the Board of Commissioners of the Authority this day of , 2000. Chairman ATTEST: Executive Director G:\ WPDATA \T\FRIDLEY\41\DOC\RESOLUTION AUTHORIZING CONTRACT.DOC Blacklined to Draft of June 1.2000 Draft: June 14, 2000 CONTRACT FOR EXCLUSIVE NEGOTIATIONS THIS AGREEMENT, effective as of this day of 2000 is between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota ( "Authority "), having its principal offices at 6431 University Avenue N.E., Fridley, Minnesota 55432, and Real Estate Recycling, LLC with its principal office at 333 South 70' Street, Suite 3060, Minneapolis, Minnesota 55402 ( "Redeveloper"). WHEREAS, the Redeveloper is proposing to develop the area identified on the map attached as Schedule A ( "Site ") and is requesting that the Authority negotiate exclusively with the Redeveloper while the area is being studied, designed and marketed; and WHEREAS, the Authority is willing to negotiate exclusively with the Redeveloper provided certain conditions described below are met; NOW, THEREFORE, in consideration of the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: Section 1.1. Definitions. In addition to the words and terms elsewhere defined in this Agreement, the following words and terms shall have the following meanings in this Agreement unless a different meaning clearly appears from the context: "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Authority" means the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota. "City" means the City of Fridley, Minnesota. "Council" means the Council of the City. "Minimum Improvements" means office, manufacturing, and warehouse facilities containing a combined total of not less than 245,000 square feet upon completion. "Party" means a party to this Agreement. "Purchase Price" means the amount to be paid by the Redeveloper for the Site. The Purchase Price shall be an amount equal to the market value established by an independent appraiser selected by mutual agreement of the Authority and the Redeveloper, provided that the appraiser shall have. determined the value within nine (9) months of the date of closing as established in the Redevelopment Contract. The Blacklined to Draft of June 1, 2000 appraisal undertaken pursuant to this Agreement shall be for clean, ready -to -build parcels of the Site. "Redeveloper" means Real Estate Recycling, LLC, a Minnesota limited liability company. "Redevelopment Contract" means the Contract for Private Redevelopment described in Section 4 of this Agreement. "Redevelopment Project" means the Redevelopment Property and the Minimum Improvements. "Site" means the real property described in Schedule A of this Agreement. "State" means the State of Minnesota. Section 2.1. Representations by the Authority. The Authority represents that it is a public body duly organized and existing under the laws of the State and that it has the power to enter into this Agreement and carry out its obligations hereunder. Section 2.2. Representations by the Redeveloper. The Redeveloper represents as follows: (A) The Redeveloper is a Minnesota limited liability company and has duly authorized the execution of this Agreement and the performance of its obligations hereunder. (B) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement will constitute a breach of any obligations of the Redeveloper under the terms and conditions of any indebtedness, agreement or instrument of whatever nature to which Redeveloper is now a party or by which it is bound, which breach will materially adversely affect the ability of Redeveloper to perform its obligations under this Agreement. Section 3.1. Redeveloper Responsibilities. The Redeveloper shall be responsible for the following: (A) Negotiate purchase prices for the acquisition of the parcels comprising the Site, which prices.shall include all relocation expenses, if any. 2 Bladdined to Draft of June 1, 2000 (B) Conduct a Phase I environmental assessment and a Phase II assessment, if necessary. (C) Conduct geo- technical analysis, if necessary. (D) Prepare grant applications for contamination grants and redevelopment grants provided by the State of Minnesota, the Metropolitan Council, and any other available sources the Parties mutually agree to approach. (E) Determine the adequacy of the available utilities. (F) Review information needed for Watershed District approval and any other governmental approvals needed by the Redeveloper for completion of the Redevelopment Project. (G) Prepare a preliminary site plan for reuse of the Site. Section 3.2. Authority Responsibilities. The Authority shall be responsible for the following: (A) Assist the Redeveloper with permit review and application for grants. (B) Review the Authority's ability to exercise eminent domain in the event that parcels cannot be purchased by the Redeveloper in an arm's length transaction for a reasonable price, as determined by the Parties. (C) Review zoning and land controls to determine their impact on redevelopment of the Site. (D) Negotiate exclusively with the Redeveloper in accordance with the terms of this Agreement. Section 4.1. Contract for Private Redevelopment. Prior to the termination of this Agreement, the Parties shall negotiate the terms of a Redevelopment Contract. Each The Redevelopment Contract shall address the issues Site, including the following: A. The Purchase Price B. Timing of the Minimum Improvements C. Composition of the Minimum Improvements D. . Timing of any public improvements E. Redeveloper guarantees F. Duration 3 e development of the Blacklined to Draft of June 1, 2000 G. Reimbursement of specified Redeveloper costs. H. Utilization of tax increment. Section 5.1. Termination. This Agreement shall terminate June 11, 2001, unless both parties agree in writing to extend this Agreement. Section 5.2. Effect. This Agreement outlines the Parties' understanding that they intend to negotiate in good faith and that such negotiations may lead to the execution of a definitive Redevelopment Contract. Each Party retains throughout the course of this Agreement complete and unfettered discretion to conduct its negotiations and perform its responsibilities in the manner it sees fit. The Parties agree that upon termination of this Agreement they shall have no further obligation to each other except as provided for in this Agreement and the Parties further agree to execute any document reasonably necessary to evidence termination. Section 6.1. Additional Provisions: (A) The Redeveloper shall not assign its rights under this Agreement. (B) Each Party shall make all reasonable efforts to cooperate with the other Party in that Party's efforts to fulfill its responsibilities under this Agreement. (C) Except for any willful misrepresentation or any willful or wanton misconduct by the Authority, the City, or their agents, officers, and employees, the Redeveloper shall hold the Authority and the City, their agents, officers and employees harmless from any of the Redeveloper's acts or. the acts of those operating under the Redeveloper's direction arising from Redeveloper's marketing, acquisition, and construction of the Minimum Improvements. (D) The Parties are not partners in the development of the Minimum Improvements or in any activities contemplated by the Agreement. IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf, and the Redeveloper. has caused this Agreement to be duly executed in its name and behalf, both as of the date first above written. G: \WPDATA+NFRIDLEY1411DOMCONTRACT FOR EXCLUSIVE EGOTIATIONS3.DOC G:\ WPDATA %FIFRIDLEY'41%DOCICONTRACT FOR EXCLUSIVE NEGOTIATIONS3 (RED TO 2).DOC 4 Dated: STATE OF MINNESOTA ) ss COUNTY OF ANOKA ) Bladdined to Draft of June 1, 2000 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA M Its Chairman By Its Executive Director On this day of 1 2000 before me, a notary public within and for Anoka County, personally appeared and to me personally known who by me duly swom, did say that they are the Chairman and Executive Director, respectively, of Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, and acknowledged the foregoing instrument on behalf of said Authority. Notary Public Authority Signature Page — Contract for Exclusive Negotiations 5 Dated: STATE OF MINNESOTA ) ss COUNTY OF ) Bladdined to Draft of June 1, 2000 REAL ESTATE RECYCLING By Name: Its: On this day of , 2000 before me, a notary public within and for ' County, personally appeared to me personally known who by me duly swom, did say that he /she is the of Real Estate Recycling, LLC, a Minnesota limited liability company and acknowledged the foregoing instrument on behalf of said limited liability company. Notary Public Redeveloper Signature Page — Contract for Exclusive Negotiations D SCHEDULE A e I M 11111111111111111 It HIM 1111111111111111111111111141 N 1 WZ. i 1 4 i 1 1 e 1 1 i I K �Y� HOUSING AND REDEVELOPMENT AUTHORITY Memorandum Date: July 7, 2000 Q,) To: William W. Burns, Executive DirectorAi From: Barbara Dacy, Community Development Director Subject: Consider Funding for Joint Community Task Force and Approve Contract with Demographic Technologies Inc. BACKGROUND The City Councils of Columbia Heights and Fridley have decided to initiate a Joint Community Task Force. The purpose of the task force is to identify ways to take advantage of the opportunities presented by the Medtronic Corporate Campus. In short, The Task Force is being asked to "open the lines of communication" between the cities and the school districts, and to talk about the direct and indirect impacts and opportunities from the Metdronic World Headquarters. The Task Force will identify priorities and potential joint projects which could be implemented in the short term (5 years or less or long term (5 to 20 years). Please remember that these priorities are not all land use related; there may be other ideas that the two cities could complete together. The Authority appointed John Meyer to represent the Fridley HRA on the 11 member Task Force. The first meeting took place on June 22, 2000. The Task Force reviewed the proposed mission and scope of work, and also reviewed the proposed work program for the consultants to assist the Task Force to accomplish its mission. The Task Force directed staff to begin the search for the appropriate consultants and to request an appropriate amount of funding from the member or other jurisdictions and agencies. REQUEST It is requested that the Authority contribute $44,208 toward the consultant costs. The purpose of the consultant work, the costs, and proposed cost sharing rationale is explained below. The contribution for the consultant costs is subject to other iurisdiction making their contributions as well (see below). It is also requested that the Fridley HRA enter into an agreement with the GIS consultant. The amount of the contract is $43,900, but this amount is not what is actually to be paid by the Authority. About $25,875 of the above amount ($44,208) pertains to the GIS work in Fridley, and the remaining $18,055 is to be paid by Columbia Heights. The remaining amount ($44,208 - $25,875) is a contribution toward the total expenses of the land use and market consultants. CONSULTANT SCOPE OF WORK The consultant work would include three parts: 1) meeting facilitation and land use planning (including land use, transportation and housing analysis); 2) market analysis and recommendations; and 3) G6S data input and mapping services. The cost for the consultant services was originally estimated at about 5 Joint Community Task Force July 7, 2000 Paoe 2 $60,000; however, after further research, the GIS portion will be more expensive than originally anticipated because staff discovered a new GIS resource from Demographic Technologies Inc. This company has been providing the "social" data/socio- economic data for the 135W Coalition (it is described in more detail below). Land Use and Market Consultant The land use and market consultants would team up as a unit to work together. The purpose of the land use and market consultant would be to: • Facilitate the identification of opportunities and impacts • Analyze the opportunities and impacts • Analyze the limitations • Analyze the information provided from the GIS Data • Complete the requested market analysis information • Facilitate goal setting and priority setting • Facilitate identification of cooperative ventures • Facilitate identification of standards to prevent incompatible land uses GIS Consultants The GIS data consists of two parts. The first part is the "physical" aspects of the study area. For example, joint zoning and land use maps would be created, or maps showing infrastructure improvements or property valuation data. This part is fairly inexpensive because both cities use the same GIS consultant (PlanSite Inc.) and a lot of the data is already in the system. The second part is the "social data ". This would require bringing in a company called "Demographic Technologies Inc." (or formerly known as "Insight Mapping Inc. "). This consultant specializes in developing GIS analyses of "human" data as opposed to physical data by parcel /household. The source of the information are many different data sets from the school, assessor's office, post office, state license and vehicle records, and the City utility billing records. The data is compiled, culled, and assigned to a household and then grouped into an "insight block" or a group of 2 to 5 parcels. By configuring the data in this manner, data privacy issues for the households are protected. The "insight blocks" however provide a lot of information in more detail than the Census Block data. The types of information that can be profiled include # of people/household, length of residency, # and age of children, ethnicity, marital status etc. The data can easily be updated and is more up to date than the Census because it is based on the most current data available. At this point, the consultant would only be working with residential parcels, but he is trying to obtain information from the Department of Economic Security regarding employee data (residence and location) to do similar profiles for commercial and industrial parcels. Why is the social data GIS information important to this process? The purpose of this information is to: • Provide an accurate description of existing population and housing characteristics in the study area (both communities have changed dramatically since the 1990 Census). Joint Community Task Force July 7, 2000 Page 3 • Provide a basis for comparing existing demographics with desired future land use or infrastructure goals identified by the Task Force (compare who we are with where we want to go). • Provide the ability to determine what has to happen demographically to make the land use and marketing goals work (what do we have to do to accomplish the goals the Task Force has identified ?). • Provide the information as to the social impacts of the desired land use or market goals (what may happen as a result of the goals). In addition, this data can be mapped in a number of different ways according to different boundaries, city limits, school districts, etc. Forecasting information can be prepared in five -year increments from 5 to 20 years. The information will also be useful to other City departments for a variety of recreation or other services, not to mention the opportunities the data presents for the Authority to use in the future for housing rehab or redevelopment planning. The communities in the 135W coalition have used this information to shape their joint planning efforts. CONSULTANT COSTS AND PROPOSED FUNDING SCENARIO The costs for the consultants break down as follows: GIS Phase I socio - economic data (input, one annual update, plus some amount of forecasting work) Columbia Heights $18,055 Fridley $25,875 2. Land Use and Market Consultant $45,000 3. GIS mapping of "physical" characteristics $ 3,000 Total: $91,930 The potential funding scenario discussed by the staff and Task Force is as follows: Anoka County $20,000 School Districts $ 7,500 ($2,500 each District) Fridley $42,208 ($16,333 per acreage cost + 25,875) Columbia Heights $22,206 ($4,151 per acreage cost+ $18,055) $91,914 Joint Community Task Force July 7, 2000 Page 4 The philosophy to date has been to identify as many outside sources as possible to reduce the total cost of the project, and then to divide the remainder of the costs (except for the Phase I GIS costs) between the two cities based on acreage in the study area, plus the costs to each city for the GIS phase I socio- economic data cited above. Because of the regional implications of the Task Force project, it is very appropriate to request the County to participate financially. About a month ago, the same GIS consultant made a presentation to Anoka County about the use of this data for the 135W Coalition work. Staff has also asked Medtronic to determine if a contribution could be made. The Task Force representatives from the School Districts agreed to take their proposed contribution amount to their respective boards to determine if they could contribute. Fridley staff will be notifying Anoka County about their contribution in July. Columbia Heights will be discussing their contribution on July 17, 2000. Contributions from Medtronic or other agencies such as Met Council would reduce the each jurisdiction's expense even further. The timing of when to get started however is key. Met Council money is not available until after the first of the year, for example. PROPOSED CONTRACT WITH DEMOGRAPHIC TECHNOLOGIES INC. For ease of administration and billing, it was determined that the GIS consultant and the land use and marketing consultant should enter into a contract with one entity /city as opposed to two. This would be a similar arrangement to the regional remodeling planbook project where the HRA took in the money from other cities and executed a contract with the planbook architect. A similar approach is recommended in this case. The Fridley HRA would execute the contract with Demographic Technologies Inc., but the contract would not be signed or the work started until all contributions have been received. The GIS consultant has drafted a "Master Services Agreement" which is presented for approval subject to receiving other community /jurisdiction contributions. The agreement refers to a separate "memorandum of understanding" between the City of Columbia Heights and Fridley regarding the payment by Columbia Heights. Once Columbia Heights approves its portion, staff will draft the memorandum to attach to the Service Agreement. RECOMMENDATION This is a great project with an enthusiastic Task Force. Staff recommends the Authority allocate up to $44,208 of its General Fund Professional Service budget for the Joint Task Force consultants, and authorize the Executive Director and the Chairperson to execute said contract when all contributions have been received by other jurisdictions /agencies. The professional service budget allocated $173,000 for a variety of potential services, but there are adequate funds remaining to cover this expense. bd M -00 -122 07/08/00 20:57 FAX 812 898 1583 -- - 30ErT CARPENTER' "' ff 02' MASTER SERVICE AGREEMENT This Master Service Agreement is made and entered into between the Fridley Housing & Redevelopment Authority, 6431 University Ave. N.E., Fridley, Minnesota, hereinafter "Fridley HRA" and Demographic Technologies, Inc., a Minnesota corporation, 17258 Jasper Court, Lakeville, MN, 55044, hereinafter "DTP'. WHEREAS, Fridley HItA, serving as the contract and fiscal agent for a Joint Task Force comprised of the cities of Columbia Heights and Fridley and others, hereinafter "Joint Task Force" said parties of which have agreed to abide by a Memorandum of Understanding as set forth in Exlu'bit L requires certain professional services consistent with the Scope of Services contained herein_ WHEREAS, DTI desires to and is capable of providing the necessary services according to the terms and conditions stated herein. NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein the parties agree as follows: ARTICLE I SCOPE OF SERVICES Tasks to be Performed DTI agrees to perform the Scope of Services as set forth in Exhibit 11 attached and included herein by reference. Completion Date DTI agrees to perform the Scope of Services set forth on Exhibit H on or before June 30, 2001. ARTICLE II CONTRACT COMPENSATION AND TERM Total Cost The total amount to be paid by the Fridley HRA to DTI for work hereunder is $43,900. Of this total, $18,050 covers work pertaining to the City of Columbia Heights. It is the understanding of the parties that the City of Fridley will acquire funding for the Columbia Heights' portion directly from the City of Columbia Heights. This Master Service Agreement commits the Fridley HRA only for the costs associated with performing the Scope of Services set forth in Exhibit H attached. Costs not covered by this Master Service Agreement include unanticipated "direct" charges associated wish acquiring city, county, state or school district data sets; routine data conversion "consulting costs" performed by a third party vendor, any data "consulting" processing or map production costs outside the Scope of Services and requested by either the Joint Task Force or an individual city; and "consulting" support in excess of the hours stipulated in the Scope of Services. All such additional "direct" and/or "consulting" costs must be pre- approved, in 07/06/00 20:57 FAX 012 898 1583 JOHN CARPENTER `_ - -- - - --{� - =-- A writing by the either the Fridley HRA, the City of Fridley and/or the City of Cohnnbia Heights prior to DTI incurring such addition charges. All such "consulting" costs will be billed to the Fridley HILA and the Joint Task Force at a rate of $80 per hour and all "direct" costs will be billed at the agreed upon "direct" cost for the item. Payment Schedule DTI shall be paid an initial payment of Ten Thousand ($10,000.00) Dollars within twenty (20) working days of the effective date of this Master Service Agreement and thereafter on a monthly basis within fifteen (15) working days of receipt of invoices delivered to the Fridley HRA All invoice(s) shat (1) itemize the work performed, (2) the date such services were provided, and (3) a general description of all services provided All payments to be made to DTI shall be limited to the Master Service Agreement amount set forth above, unless DTI receives written instruction and authorization to proceed with additional work beyond the attached Exhibit H Scope of Services and for which the Fridley HRA agrees to be legally bound for payment. Contract Term The term of this Master Service Agreement shall terminate on June 30, 2001, unless early terminated by either party as set forth in Article VIII. ARTICLE III COMPLIANCE WrM LAWS AND STANDARDS General DTI shall abide by all Federal, State or local laws, statutes, ordinances, rules and regulations now in effect or hereinafter pertaining to this Master Service Agreement. Minnesota Law to Govern This Master Service Agreement shall be governed by and construed in accordance with the substantive and procedural laws of the State of Minnesota, without giving effect to the principles of conflict of laws. All proceedings related to this Master Service Agreement shall be venued in the State of Minnesota. Independent Contractor Status DT1, its affiliates and any subsidiaries and/or partnerships shall at all times be deemed to be independent contractors) and nothing herein contained shall be construed to create the relationship of employer and employee between the Fridley BRA and DTI; its affiliates and any subsidiaries and/or partnerships. DTI, its affiliates and any subsidiaries and/or partnerships, shall at all times be free to exercise initiative, judgment and discretion as to how to best perform or provide services under the terms and conditions of this Master Service Agreement. DTI, its affiliates and any subsidiaries and/or partnerships aclmowledge and agree that DTI is not entitled to receive any of the benefits received by Fridley BRA or Columbia Heights employees, if any, and is not eligible for workers' or unemployment compensation benefits. DTI acknowledges and agrees that no withholding or deduction for State or Federal income taxes, FICA, FUTA, or otherwise, will be made from the payments due DTI and that is DTrs sole obligation to comply with the applicable provisions of all Federal and State tax laws. 2 07/08/00 20:57 FAX 812 898 1583 - JOHN- CARPENTER- --_ ..... . --@04- ARTICLE IV INDEMNIFICATION Any and all claims that arise or may arise on behalf of DTI, its affiliates and any subsidiaries and/or partnerships, its agents, servants or employees as a consequence of any act or omission on the part of DTI, its affiliates and any subsidiaries and/or partnerships, or its agents, servants, employees while engaged in the performance of this Agreement shall in no way be the obligation or responsibility of the Fridley HRA or the Joint Task Force. DTI, its affiliates and any subsidiaries and/or partnerships shall indemnify, hold harmless and defend the Fridley HRA, the Joint Task Force and their officers and employees against any and all liability, loss, costs, damages, vgmses, claims or actions, including attorneys' fees which the Fridley HRA, the Joint Task Force, their officers or employees may hereafter sustain, incur or be required to pay, arising out of or by reason of any grossly negligent or willfid act or omission of DTI, its affiliates and any subsidiaries and/or partnerships, its agents, servants or employees, in the execution, performance, or failure to adequately perform DTrs obligations pursuant to this Master Service Agreement. ARTICLE V LIKETATION OF LiARIMM DTI, its affiliates and any subsidiaries and/or partnerships deny any liability for any data errors or omissions resulting from development of socioeconomic data or any liability associated with decisions or policies developed by the Fridley HRA, the Joint Task Force, potential real estate developers or other parties based on the data provided. DTI; its affili ates and any subsidiaries and/or partnerships, shall at all times be free to exercise initiative, judgment and discretion as to how to best perform or provide the data processing and consulting services under the terms and conditions of this Master Service Agreement. ARTICLE VI SUBCONTRACTING AND RIGHT OF ASSIGNMENT DTI may at all times enter into subcontracts for the performance of the services contemplated under this Master Service Agreement and assign its interest in this Master Service Agreement to a&liates, subsidiaries and/or partnerships of its sole choosing without prior written consent of the Fridley HRA or the Joint Task Force. All such affiliates, subcontractors and/or partnerships shall at all times be under the control and supervision of DTL and all such entities, if any, shall be bound by the terms and conditions of this Master Service Agreement. ARTICLE VII DEFAULT Inability to Perform DTI shall make every reasonable effort to maintain sta$ facilities, and equipment to deliver the services to be purchased by the Fridley ERA acting on behalf of the Joint Task Force. DTI shall immediately notify the Fridley LIRA in writing whenever it is unable to, or reasonably believes it is going to be unable to provide the agreed upon services. Upon such notification, Fridley HRA 3 07/06/00 20:57 FAX 812 898 1583 JOHN CARPENTER - - x}05 -` -- shall determine whether such inability requires a modification or cancellation of this Master Service Agreement. Duty to Mitigate Both parties shall use their best efforts to mitigate any damages that might be suffered by reason of any event- giving rise to a remedy hereunder. ARTICLE VIII TERMINATION With or Without Cause This Master Service Agreement may be terminated, with or without cause, by the Fridley HRA and the Joint Task Force upon thirty- (30) days written notice to DTI. Notice of Default Either party may terminate this Master Service Agreement for cause by giving ten (10) days written notice of its intent. Said notice shall specify the circumstances warranting termination of this Agreement. Failure to Cure If the party in default fails to cure the specified circumstances as described by the notice given under the above paragraph within the ten (10) days, or such additional time as may be authorized by the party giving notice, then the whole or any part of this Master Service Agreement may be terminated by written notice. Notice of Termination Certified mail or personal delivery to the authorized agent of the party shall make Notice of Termination. Notice of Termination is deemed effective upon delivery to the address of the party as set forth herein. Effect of Termination Terfination of this Master Service Agreement shall not discharge any liability, responsibility or right of any party which arises from the performance of or failure to adequately perform the terms of this Master Service Agreement prior to the effective date of termination. ARTICLE IX RIGHTS AND REMEDIES Rights Cumulative All remedies available to either party under the terms of this Master Service Agreement or by law are cumulative and may be exercised concurrently or separately, and the exercise of any one remedy shall not be deemed an election of such remedy to the exclusion of other remedies. Waiver Waiver for any default shall not be deemed to be a waiver of any subsequent default. Waiver or breach of any provision of this Master Service Agreement shall not be construed to be V 07/08/00 20:57 FAX 812 898 1583 JOHN CARPENTER modification for the terms of this Master Service Agreement unless stated to be such in writing and signed by authorized representatives of Fridley FHA and DTI ARTICLE X AUTHORIZED REPRESENTATIVE Notification required to be provided pursuant to this Master Service Agreement shall be provided to the following named persons and addresses unless otherwise stated in this Master Service Agreement, or in a modification of this Master Service Agreement. To DTI: John Carpenter Demographic Technologies, Inc. 17258 Jasper Court Lakeville, MN 55044 To Fridley HRA: Barbara Dacy City ofFridley 6431 University Ave. N.E. Fridley, MN 55432 -4383 ARTICLE XI MODIFICATIONS Any alterations, variations, modifications, or waivers of the provisions of this Master Service Agreement shall only be valid when they have been reduced to writing, and signed by authorized representatives of the Fridley HRA and DTI. ARTAICLE XII SEVERABUM The provisions of this Master Service Agreement shall be deemed severable. If any part of this Master Service Agreement is rendered void, invalid, or unenforceable, such rendering shall not affect the validity and enforceability of the remainder of ibis Master Service Agreement unless the part or parts which are void, invalid or otherwise unenforceable shall substantially impair the value of the entire Master Service Agreement with respect to either party. . ARTICLE XM MERGER Final Agree moment This Master Service Agreement, including Exlu'bits I, is the final expression of the understanding between the parties and the complete and exchisive statement of the terms agreed upon, and shall supersede all prior negotiations, understandings or agreements. There are no representations, warranties, or stipulations, either oral or written, not herein contained. 5 IJOe � -- 07/08/00 20:57 FAX 812 898 1583 JOHN CARPENTER- IM07 ARTICLE XIV ACKNOWLEDGEhM4TS AND PRODUCT OWNERSHM Acknowledgements Any and all maps, tables, graphs, or reports produced by DTI, the Fridley HRA, the Cities of Fridley and Columbia Heights or other parties to this Master Service Agreement, based on the socioeconomic data set developed by DTI, shall acknowledge that "current demographic and socioeconomic data sets are produced by Demographic Technologies, Inc. All rights are reserved." References to rBlockTM, iBlocksTM or iMapsT'r shall acknowledge that these are trademarks of Demographic Technologies, Inc. Product Ownership All rights, title, and interest in the products produced by DTI under the terms and conditions of the Master Service Agreement shall, remain the sole property of DTL The Fridley ERA, the Joint Task Force, the City of Fridley and the City of Cohrmbia Heights, individually or collectively, shall not disclose or make available, in whole or in part, such products to any party, except as specified herein, without the consent of DTI. The Fridley HRA and the Joint Task Force acknowledges that DTI, the Fridley BRA and the Joint Task Force have an interest in prohibiting unauthorized access to the DTI products produced for the Joint Task Force by DTI. DTI agrees to provide exclusive access to the DTI Demographic Data Products (including both hardcopy and digital data) produced under this Master Service Agreement to the Fridley HRA, the City of Fridley and the City of Columbia heights. DTI agrees to not share these Demographic Data Products outside of these three organizations without the written approval of the funding organizations. The Fridley ERA grants to DTI its approval to utilize portions the Demographic Data Products for marketing and demonstration purposes, as long as the materials are limited to content that abbreviates or simply reviews said information. The Fridley ERA, the Joint Task Force, the City of Fridley and the City of Columbia Heights may share any of the hardconv DTI Demographic Data Products produced by DTI with other parties without requesting permission of DTI. However, patties receiving these products must agree in writing to display all the above - stated acknowledgements associated with these products when they are used alone or are incorporated into other reports or documents. Fridley must forward said writing to DTPs attention within a reasonable time period from date of receipt. Sharing of any AigiW data (in database, table, ArcView Shape Files, charts, other graphic, application, or electronic form) by the Fridley HRA, the Joint Task Force, the City of Fridley or the City of Columbia Heights shall be permitted if licensed through DTI. The license shall state clearly that the user or licensee agrees to be bound by the following terms and conditions: A. The User will not make unauthorized copies of the digital DTI Demographic Data Products; B. The User will not sell, disclose, or otherwise make said products produced by DTI available to others; 07/08/00 20:57 FAX 812 898 1583 JOHN CARPENTER C. The User will take all necessary and responsible steps to ensure that the DTI Demographic Data Products are not disclosed, duplicated, or made accessible in whole or in part for the use of others and will prevent unauthorized disclosure by taking appropriate security measures including, but not limited to, providing physical security for copies of the products produced by DTI and take all steps DTI requires to protect information, data, or other tangible and intangible property of its own that DTI, the Fridley BRA and the Joint Task Force regard as proprietary or confidential; D. The User will not use the DTI products except in furtherance of Joint Task Force business or organizational activities, or service agreements and/or contracts entered into with DTI, and E. The User will in no way attempt to use the DTI products to produce disaggregated counts or compile data for product(s) intended to compete with the DTI Demographic Data Product. DTI shall retain all ownership rights and control of all proprietary applications, procedures and processes either created by DTI or accessed through third party license agreements or through subcontractor, subsidiary and/or partnership arrangements and used by DT1 to produce Joint Task Force products. All source data pertaining to indivrduals or households, used in producing the DTI Demographic Data Products, are protected either by separate confidentiality and non- disclosure agreements or provisions of the Minnesota Data Practices Act. None of these data sets will be released or shared by DTI with Fridley, the Joint Task Force or any other party. IN VMWESS WUMOF, the parties hereto have executed this Master Service Agreement on the date(s) indicated below, the Fridley Housing & Redevelopment Authority by executing this Master Service Agreement does so on its own behalf and for the City of Columbia. Heights as a member of the Joint Task Force referenced herein. DEMOGRAPHIC TECHNOLOGIES, INC. By: Title: Date: FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY By- Title- Date. FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY By Title: Date: VANE 6 07/08/00 20:57 FAX 812 888 1583 - JOHN CARPENTER 11: MEMORANDUM OF UNDERSTANDING (To Be Drafted) _ .. -t09 07/00/00 20:57 FAX 612 898 1563 "– JOHN CARPENTER'- - -- —�1$- 1 .4 *11: 1 SCOPE OF SERVICES Contract Services By Demographic Technologies, Inc. DELIVERABLES Demographic Technologies, Inc. (DTI) will deliver the following data and consulting services to the Joint Task Force of Columbia Heights and Fridley. Phase 1: DTI Demographic Data Set (Year 2000 Pro5les1 DTI will deliver a digital, GIS- compatible data file containing socioeconomic profiles of all residents living in the cities of Fridley and Columbia Heights as of the contract date. The intent will be to provide critical data for use by the Joint Task Force in constructing development and land use strategies related to the new Medtronics campus development. The form of the data will be modeled after a successful data set produced in 1999 (and updated in 2000) for the North Metro I35W Corridor Coalition. A layout of the current 13 SW Coalition's data set is attached for reference. Opportunity will be provided to the Joint Task Force, early in the process, to add other data fields or data ranges based on the Joint Task Force's needs. The socioeconomic profiles are estimates created, through a proprietary process, from government and school district administrative data sets maintained at the state, county and local levels. Joint Task Force members will be asked to help expedite our access to these core data sets. These profiles will be built at a household level and then summarized in small blocks of three to five households called iBlockirm. Multi - family developments of three or more households will be structured as individual iBlocksTn. This will enable current demographic & residential land use patterns to be identified and analyzed. One of the strengths of this approach is that these small data blocks can then be combined to precisely fit any planning or study area, school attendance area, census boundary, TIF district, TAZ, or development study area The iBlockrm aggregations will be built as an overlay on the GIS parcel base developed by Anoka County and maintained by PlanSight�Lc for the two cities. This GIS link to the physical land use and housing data maintained by the County permits the socioeconomic data to be related directly to any or all land use or housing options the Joint Task Force may be interested in considering. Phase U: Consulting In Socioeconomic Applications In line with work currently being provided to the I35W Corridor Coalition, DTI will provide a series of five -, ten-, fifteen-, and twenty-year demographic forecasts based on the iBlockTK data. These forecasts will be built on a Census Block Group basis (equating to roughly 300 to 400 households each). A set of forecasts will be produced that assume no land use changes followed by other sets that assume different development scenarios 2 07/08/00 20:57 FAX 812 8981563 JOHN CARPENTER- - --- �J11 z8 IP A 11:1� identified by the Joint Task Force. These scenarios are likely to require additional iBlockTm data crosstabs as well as other development data from the Joint Task Force. In anticipation of this information being used by the Joint Task Force's land use and marketing consultants, DTI proposes to team up with PlanSightLLC to package a series of maps, applications and custom data sets that will permit the task force and consultants to more effectively integrate the data into their planning models. The following are two examples of possible applications and custom data sets developed during Phase II. (DTI will work with the Joint Task Force and its consultants to define the most useful applications and data sets.) 1. A profile ofMedtronics' employees currently living in the project area. This is critical in assessing employment growth implications, travel and transit needs, and other related economic development needs. The project would include the follow steps: a Match an employee list from Medtromcs with the Mock'"" profiles, b. Assign household demographic attributes to Medtronic workers, c. Map the location and likely travel patterns of these employees, and d. Compare and contrast these profiles and patterns against the demographics of all residents in the area. 2. Analysis of the impacts of housing affordability and turnover on the area's workforce and school enrollment. This project would help the group see how current housing issues will shape community, school and workforce characteristics over the next five to ten years. a. Produce a series of iBlock tables comparing and contrasting residents in affordable housing from those in non - affordable housing. Of particular interest will be turnover patterns by age of head -of- household and forecast changes based on trends from 1990 to the present. (For similar work in the D 5 Corridor we are using a $120,000 tax value as the affordability break point. You may wish to use other or additional breaks.) b. Map areas of the community likely to see significant changes in workforce and school enrollment due to an aging population, rapid turnover, or new development /redevelopment projects. c. Provide tables and data sets for use by land use and marketing consultants. Phase III: Current Business Profiles DTI will wont with the Joint Task Force to petition the Minnesota Department of Economic Security for access to their ES_202 data file. This file contains a current listing of all area businesses that are making employer contributions to the Social Security System_ The file contains business names, addresses, business type codes, number of "covered" employees, and wages paid in the previous quarter. This is a restiUted file (not considered public data) that will need to be summarized and protected in a fashion similar to the residential profile data. Permission to use this file 3 07/00/00 20:57 FAX 812 898 1583 -- - -JOHN CARPENM lo.myn) 1 has recently been received by the I35W Corridor Coalition and DTI will be in charge of processing this file for use in GIS and in conjunction with the socioeconomic data set. Assuming that the Joint Task Force will wish to pursue this data file and is successful in acquiring it, a portion of DTI's contract consulting hours (from Phases II and IV) will be redirected to support this data development initiative. Phase IV: DTT Demographic Data Update ('Year 2001) DTI will deliver one update to the combined Fridley /Columbia Heights socioeconomic data set in 2001. Addition consulting will be provided to assist the Joint Task Force in identifying critical demographic changes underway in both communities and their implications from a residential redevelopment and jobs perspective. The specifics of this consulting will be determined in conjunction with the Joint Task Force. TEMETABLE AND COSTS All four phases in this contract will be completed by June 30, 2001. The Phase I socioeconomic data set will be delivered no later than four months after start of the contract and after receipt of the city and school core databases. A target date of November 30, 2000 has been identified. The project will be completed at a fixed cost of $43,900. This cost includes a maximum of 175 hours of consulting support over the length of the contract. Consulting hours will be reported as part of monthly invoices submitted to the Fridley Housing and Redevelopment Authority (the fiscal agent for the Joint Task Force members). Included in consulting hours will be requested attendance at Joint Task Force, Technical Advisory Group, or other related city meetings. Additional consulting hours, if needed, wiM be available at a billing rate of $80 per hour. 4 -- � IM 12 - _- 07/00/00 20:57 FAX 812 898 1583 - JOHN CARPENTER - IIS 1 IBlockTM Socioeconomic Data Fields (Preliminary) Demographic Technologies, Inc. The following data fields are cau=tly being developed as part of the North Metro I -35W Corridor Coalition's Year 2000 socioeconomic database updft ©antiact. 1. GroeraI hie Ida t: w (9) — These are identifiers. found on each summary F OW permitting links to other data sources and simple aggregations to standard plamaing geographies. • mock"" ID • School Attendance Areas ID • County ID • 1990 Census Tract 10 • Municipality 1D • 1990 Census Block Group ID • Planning District ID • 1990 Census Block ID • School District ID • TAZ ID 2. PMAgion Cl ara0m iWim — The following fields describe the characteristics of individuals residing in each Insight Block summary area. • Total Population (1) — Current year count of all persons living in residential dwellings • Ages 02— bolation (20) — Current year count of persons by standard age rams o Under age 3 o 45 to 49 years old o 3 to 4 years old o 50 to 54 years old o 5 to 9 years old o 55 to 59 years old 0 10 to 14 years old o 60 to 61 years old 0 15 to 19 years old o 62 to 64 years old o 20 to 24 years old o 65 to 69 years old o o 25 to 29 years old 30 to 34 years old o 70 to 74 years old o 35 to 39 years old o 75 to 79 years old o 80 to 84 years old o 40 to 44 years old o 85 years or older Addict anal Ape Groug nps (23) — Special age agpeptions 0 5 years or younger o 35 to 54 years old o 12 years or younger o 35 to 54 years old 0 18 years or younger o 35 to 64 years old 0 13 to 18 Years old 0 45 to 64 years old 0 25 to 34 years old o 18 year or older 0 35 to 44 years old o 25 years or older 0 45 to S4 years old o 35 years or older 0 55 to 64 years old o 45 years or older 0 65 to 74 yews old o 55 years or older 0 25 to " years old o 65 years or older 0 25 to 54 years old o 75 years or older 0 25 to 64 years old • AverapeAge o/Poaula/ian (1) — Current year average population age �1 IZ 13 -'- 07/08/00 20:57 FAX 812 898 1583 '. . JOHN-CARPENTER - IM14- -' t 69 11: Powlation Planning Segments (10) — Chmat year catint of persons by planning segment • Young child (age 0-3) o Mdiddle Adult (age 28-44) • Meddle child (age 4-7) o Older Adult (age 45-64) • Older child (age 8-11) o Active Senior (age 65 -69) • Adolescent (age 12 -15) o Mddl a Senior (age 70-79) • Young Adult (age 16-27) o Elderly Senior (age 80 or older) • Recreatio Access and Mobility Plammn Se eats (4) — Cmrent year count of persons by special recreation, access and mobility planning segments • Child (Under age 8) o Adult (age 16 to 79) • Youth (age 8 to 15) c Elderly (age 80 or older) 3. Household tCharaderis[ias — the Following fields describe the characteristics of hounbolds living in residential dwellings. • Total ff aseholds (1) — Current year O 1 ­1 of all red demt households • HeadofhoaseholdAgw (7) — Current year coast of householder ages by age range o Under age 25 o 55 to 64 years old 0 25 to 34 years old o 65 to 74 years old 0 35 to 44 years old o 75 years or older 0 45 to 54 years old • Additional Head-of- hoaseholdAees (10)— Special aggreLPtions o 34 years or younger o 25 years or older o 44 years or younger o 35 years or older o 54 years or younger o 45 years or older o 64 yew or younger o 55 years or older o 74 years or younger o 65 years or older • .Average Age efHorrseholder (1) — Current year average householder age • Size ofHovsehold (4) —Current year count by number of persons in each household • One person o Three persons • Two persons o Four or more persons • Tyne of hlovsehold -(9) — Curroat year count by composition of household • One Adult Only o Extended Family (w/ Child) • Two Adults Only o One Senior Only • Three + Adults Only o Two Seniors Only • One Parent (w/ Child) o Adult/Senior (no Child) • Two Parents (w/ Child) • Add clonal Household 2]yM Rolhrps (3) — Aggregations of previous household types o Adult Only Households o Senior-based Households o Households w/ Children 6 07/06/00 20:57 FAX 612 898 1563 .... JOHN CARPENTER EXFIIBIT A 4. Aowcarr Chw acteriwks - The following fields describe the housing of residents ZW o Dwel6n (10) - Current year count by type of dwelling (Ramsey Co.) • Condominium o Duplex • Apartment - garden o Triplex • Apartment - walkup o Double • Apartment - elevgor o Townhome • Mobile home o Commercial apartment • Single family - detached • Type of ac- cupancy (2) - Current year count by owner and renter occupancy o Owner-occupied o Renter - occupied Assessed Value ojHomes (12) - Current year count by total property tax valuation (owner- occupied dwelling&) o Less than $50.OW o S175,000 to 5199,999 o $50,000 to 574,999 a 5200,000 to 5249,999 0 575,000 to $99,999 0 5250,000 to $299,999 0 5100,000 to 5124,999 0 5300,000 to 5399,999 o 5125,000 to $149,999 o $400,000 to 5499,999 o S 150,000 to 5174,999 o $500,000 or more Additional Home Valve Ranges (18) - Current year Count by total property tax valuation (owner- oavpied dwellings) o Less than 575,000 o o 5 5150,000 to 5199,999 o Less than 5100,000 o o 5 5200,000 to 5249,999 o Less than $125,000 0 0 $ $50,000 or more o Less than $150,000 0 0 $ $75,000 or more o Less than $175,000 o o 5 5100,000 or more o Less than 5200,000 o o 5 5125,000 or more o Less than S250•000 0 0 5 5150,000 or more 0 550,000 to 599,999 o o 5 5200,000 or more o $100,000 to 5149,999 o o $ $250,000 or more Age - oL0wiier -0ccuwed HovsinQ (9) - Count by year owner,��ed hoarse was built. • Built 1997 to 1999 o Built 1960 to 1969 • Built 1995 to 1996 o Built 1950 to 1959 • Built 1990 to 1994 o Built before 1950 • Built 1980 to 1989 o Unknown build date • Built 1970 to 1979 Rome Sales - 5 Years (2) - Nwber and value of owner- occuiied homes sales in past 5 years (includes most recent sale only) o Number of Sales o Aggregate Sala (Drs) 5. Oce manev Cbaraderi dres - The following fields describe the turnover and tenure of households living in residential dwellings. Turnover Rate (2) - Average annual turnover in households based on 5_yc ar history for owner-accapied dwellings and 2 years for renter- ocwoed dwellings. o Turnover - Owner-occupied o Turnover - Renter - occupied • Length of Time arAddromc (9) - Comm by years at address from home sales and utility billing data (owner -died residents only) 7 07/08/00 20:57 FAX 812 898 1583 - -- � - -- -- -JOHN CARPENTER - - - • - • Loss than Two Yeats • Two Years • Three Years • Four Years • Five Yeats • Six Years • Seven Years • Eight Years • Nine Years or Langer • Ualmown Tenure 11: Soeeial Dais Cow])ilations The basic iBlockTM data set will be compiled into special summary data sets to facilitate planning and analysis uses. Each set will carry the data fields outlined above and can be aggregated to fit any defined geographic area. Each set will address a different segment or characteristic of the population base to facilitate various analysis needs. The following is a list of potential summary level reports: 1. All residents and households 2. Residents in owner - occupied dwellings 3. Residents in neettter-0cctpied dwellings 4. Residents in non - senior households without children present 5. Residents in non - senior households with children present 6. Residents in senior4xased households 7. Residents in Angle-person, non - senior households B. Residents in singlclzrson, senior households 9. Residents living in single family, duplex or triplex housing 10. Residents living in aparuncros 11. Residents living in townhouses 12. Residents living in condominiums 13. Residents living in mobile homes 14. Residents in o mcr-0ccupied homes valued at less than S75 ,000 15. Residents in owner- omgged homes valued at $75,000 to S99,999. 16. Residents in owner-occupied homes valued at $100,000 to $124,999 17. Residents in owner-occupied homes valued at 5125,000 to S149,999 18. Residents in owner- oompied homes valued at S 150,000 or more 19. Residents who have lived in their owner-0ocupied homes less than 5 years 20. Residents who have lived in their owner - occupied homes five years or longer 21. Residents who have lived in their renter-oeapied homes less than 2 years 22. Residents who have lived in their renter - occupied homes 2 years or longer F, hT HOUSING AND REDEVELOPMENT AUTHORITY Memorandum DATE: July 7, 2000 TO: William Burns, Executive Director of HRAO FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Update on Gateway East Project Develoler Proposals In early May, staff mailed out RFP packets to twenty -two prospective developers for the Gateway East project. The list was fairly comprehensive and included both large and small scale developers who had previously worked in Fridley, as well as those who have done similar in -fill projects in other communities. On June 16th we received proposals from Real Estate Equities of St. Paul and Hokanson Development of Blaine. Attached are copies of the proposals from each developer. In addition, there is also a matrix attached that summarizes each proposal and the evaluation scores of staff. An explanation of - the evaluation process is attached to the matrix. Tentatively, staff has scheduled interviews with the developers on July 14th and 19th. There is additional information we still need to collect from the developers, especially with regard to the financial implications of their proposals. Our approach will be to interview both developers and depending on the outcome of those interviews bring forward a recommendation at the August HRA meeting. However, should the HRA decide that it wants to have the developers make presentations at the August meeting, we would be happy to make the necessary arrangements. TIF Schedule Assuming that the HRA decides to proceed with one of the development proposals and enter into a development agreement, the next step in the process will be to create the Tax Increment Financing district. Jim Casserly's office has established a tentative schedule which is attached. Summary The HRA does not need to take any action at the July 13th meeting; however any feedback on the proposals or selection.process would be helpful. gf M -00 -124 08/29/00 THU 10:38 FAX 812 885 5989 - MUSS- MONROR s M CITY OF FRibLEY PROPOSED D CHRONOLOGY ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 17 (GATEWAY EAST) INCLUDING APPROVAL OF MODIFICATION OF REDEVELOPMENT PLAN AND UNDERLYING TAX INCREMENT FINANCINC PLANS Thursday, July 13, 2000 Monday, August 22, 2000 Friday, September 8, 2000 Monday, September 11, 2000 Thursday, September 21, 2000 Thursday, October 5, 2000 Monday, October 9, 2000 Monday, October 25, 1999 R :%WPDATA%FU °Rlnl,[ti13plT{l I- IRONOLOOY FOR TIP Mon.00c HRA Meeting: review chronology and approval to proceed Notification of proposed action to County Commissioner (30 days prior to publication of notice of public hearing) Proposed Tax Increment Financing Plan provided to County Auditor and School Clerk (30 days prior to public hearing) City Council Meeting: call for public hearing Notice of public hearing published in the City's official newspaper (trot less than 10 days nor more than 30 days prior to public hearing) HRA Meeting: approve establishment of Ts District No. 17, and adopt the proposed TIF Plan modifications to Redevelopment Plan and TIF Plans; and City Council Public �Iearing: review of proposed establishment of TIF District No. 17 and approval Of TIF Plan and modifications to Redevelopment Plan and TIF Plans. City Council Meeting: approve establishment of TIF District No. 17, and adopt the proposed TIF Plan modifications to Redevelopment Plan and TIF Plans. R I \ C E 1k) 03 ° � m « e g E n m m , _ I c < CL .3. 7£ 0 a 7 o A/ (1) CD CD r Co CD o .... a $ m § § , .. 2 k CP e _ Q. 7 / CD CD m CD � o ap 2 a i\ �Rn 7 £Ggr o eta§ . (W�R 2�k�W 2 (D @ c 7k2 / \k �<� § §2f)0 e CL oc © a =M FD >m =_- a k000s 7 ' @■ C 0 E -9 C3 2 Z. 69 � 7 m 0 o o ' 0 e 5 m@! e 2�# �14 CD 3 %�§ ACA t$ 78 m' 7�� po , S� § cork �R lb r ®c §B @ �\§ k� ; o (n ®/ (D � - 2 CD Z -0 k� o � --4 -00 a» > � % k \ -® k] c c " c R B x 2 q t R Ln g m C # g 2; co o � �2 > o $o $ 'a $ - A § 2 g ' nk ° oN St )' ®2 o0 of E® § 2� k f o 2 U ,% CA c 2 \� 2� �2 � §§ gt �CD k+ _ N3 w a CA CO) m » » m ) 0 /kJ ■ < < CD 2 2 ■ ■ K <* �� kw <0 =.w 2&� CD W— c am— D3B E a s_ ■ e§ § c§ E §_« E 2 A k & 3§ E 2mc �E fE 2a#o.E .�9 £a�E 3 E E_ g . m 2 a CL ®= E \ƒ e k ) / CD � � -0 M. w CD k / \ x , _ � & m « 2 2 o i :3 CD � _ « _a < &�f 2£E _« /0 220 k, CD '� ik 0 CDc 022 \%2 .o a= �(A a m= a m n( \ F} E Ao ©x _ 0 < cu . o Fr, -0 3 °. E - o q G m to M. co I 'a KI o f :30 S. / m a - k K ) g p = (a � 0 � o R E Z E B 0 W rM(A o — m m �k� 3 3 n- 7 §§ -� 2 2 =ƒ }Er- \ CD @ k k g 5. 6 .© c&= CL m 2 0 f g° § 2 g_ Z B E i G£ o «_£ _Z �0 /2 \E CL )_0w E\ �£ C �AA� + ©f CD �-a 8 EBB CL m# :3 CD �w �C _ %/ CD n_ §f 2�� /)k �� CL CL \ƒ /� }� k \\ / CD S K) Ab e # ¥ ■ t q n . . w e w 4 § q 8 ' \ r -+ n� CA) ;a en to n -am >>MR 0-000 0 m a`D<� CD CD