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HRA 07/10/2003 - 00027966CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY MEETING JULY 10, 2003 CALL TO ORDER: Chairperson Commers called the July 10, 2003, Housing and Redevelopment Authority meeting to order at 7:37 p.m. ROLL CALL: Members Present: Larry Commers, John Meyer, Pat Gabel Members Absent: Virginia Schnabel Others Present: Grant Fernelius, Assistant HRA Director Scott Hickok, Community Development Director Paul Eisenmenger, HRA Accountant Mark Larson, 5923 - 3rd Street NE Charles & Connie Gunnufson-Olson, 5917 - 3�d Street NE lone Alaspa, 5925 3�d Street NE APPROVE THE JUNE 5, 2003 HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES: MOTION by Ms. Gabel, seconded by Mr. Meyer, to approve the minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: CONDUCT ANNUAL MEETING AND ELECTION OF OFFICERS MOTION by Ms. Gabel, seconded by Mr. Meyer, to nominate and re-elect Larry Commers to continue as Chairperson and Virginia Schnabel to continue as Vice-Chairperson of the Housing & Redevelopment Authority for 2003-2004. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. AUTHORIZE PAYMENT FOR RIGHT-OF-WAY ACQUISITION AT TH 65 AND MOORE LAKE DRIVE Mr. Grant Fernelius, stated this involves acquisition of right-of-way just north of St. Phillip's Lutheran Church at the corner of Highway 65 and West Moore Lake Drive. It involves widening West Moore Lake Drive, west of Highway 65. It is part of the anticipated expansion of Highway 65. The City has to acquire three pieces of right-of-way, the other two from Miller Funeral Home directly across the street and the northeast quadrant of the shopping center. Two of the three pieces have been acquired assuming they will be approved at this meeting. This is the second piece, and staff is still awaiting the third acquisition at the shopping center. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 2003 Mr. Fernelius stated Evergreen Land Services was hired by the City to actually negotiate the acquisition, and they have negotiated a purchase price of $15,900; 3,868 square feet is an actual permanent easement that would be used for utility and sidewalk purposes. Then there is an additional easement of slightly over 6,900 feet that would be used as a temporary easement for construction purposes. This cost was included in the 2003 HRA budget, and staff is recommending approval of this acquisition. Mr. Commers asked if there was a sidewalk along there now. Mr. Fernelius stated he believed so. Mr. Commers asked if that ran all the way down from West Moore Lake Drive to Medtronic Drive. Mr. Commers asked along Highway 65? Mr. Fernelius replied he didn't believe there is a sidewalk there. Mr. Meyer stated he guessed he was a little surprised to see Evergreen Land Company in the process of negotiation and acquisition of the land as a private venture. He thought that City staff was always the people to do this work. He had no objection but was curious about how that came about. Mr. Fernelius stated he was not real familiar with how the Public Works Department operates on this kind of issue. He knows on the HRA side, staff has been responsible for a number of acquisitions related to redevelopment. On the Public Works side, when acquisition is involved of right-of-way, he is aware of the practice of using an outside consultant. He thought the reason why that was done typically is that relocation is involved so you want an outside consultant to come in that is familiar with that. They could then negotiate an entire package of acquisition and relocation. He believed they have worked with Evergreen Land Services in the past on another project in the Riverview Heights neighborhood. Mr. Meyer asked if it is correct that Evergreen Land Services ultimately has no power to close a deal or anything like that; they just negotiate and recommend, and, the HRA or City staff or Council can veto or accept. Mr. Fernelius replied, that is correct. MOTION by Mr. Meyer, seconded by Ms. Gabel, to approve the payment to St. Phillip's Church for the temporary and permanent easements for the expansion of Trunk Highway 65. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. CLAIMS AND EXPENSES Mr. Commers asked what is all the TIF software from Ehlers and Associates? Paul Eisenmenger, HRA Accountant, replied that is the Quick TIF software that they put together that he uses to prepare the annual TIF reports to file with the State Auditor's Office. It does a really good job of accumulating data from past years and pulling it into the current year's software. Mr. Commers stated he assumed all the payments to McGlynn's and Minnesota Christian Homes are their required TIF payments? HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 2003 Mr. Eisenmenger replied, yes, those are either annual or semi-annual payments the HRA is obligated to pay, representing tax increment note payments. Ms. Gabel asked if the report also breaks this information down into TIF districts, is that why it is listed like that? Mr. Eisenmenger replied, yes, it provides all of the historical information on the district itself, as well as financial information on revenues and expenses and also it keeps track of the debt obligations of each of the TIF districts. Mr. Commers asked about on the revenue side, the CRF Inc. Was one of the mortgages paid off? Mr. Eisenmenger replied that is the monthly payment they received from CRF representing mortgage payments received by the housing program that Mr. Fernelius runs. That's an accumulative total of what CRF collected in mortgage payments for the month of June. Mr. Meyer asked what are they paying Mr. Paschke for? Mr. Fernelius replied that was part of the development deal they did with Mr. Paschke. Those are payments on the revenue note that they issued. Mr. Commers stated he thought it was either soil correction or a holding pond. MOTION by Ms. Gabel, seconded by Mr. Meyer, to approve the claims and expenses as presented. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. INFORMATION ITEMS: 4. GATEWAY WEST/WERNER'S UPDATE. Mr. Fernelius stated at the June meeting the HRA authorized staff to analyze redevelopment opportunities on the former Werner's Furniture site located at the corner of 59th and 3�d Street. That analysis was to include a possible expansion north of the Werner's site. One of the options under consideration was to combine the Werner's site with the former Frank's Used Car site at the corner of 57th Place and 3�d Street. The existing Werner's site is suitable for redevelopment of two homes. The Frank's site could accommodate up to six homes (which would be a total of eight). Expanding north of Werner's would provide enough land for seven additional homes (or a total of 15 lots). The thought process is that a larger development might be more attractive to developers and possibly produce a better quality development. He wanted to again express, as he has in the past, that this is only exploratory; no decisions have been made concerning the Gateway West project. The primary concern since the last meeting was really to meet with neighbors and determine whether there was any interest in selling their properties since that would be a key piece to expanding. It also was important to point out that expansion is not required in order to do Gateway West. It is one option and possibly more desirable in making the project more attractive, but it is not essential in order to do a redevelopment project. Mr. Fernelius stated the discussions they had with the neighbors included the four homes that are north of the Werner's site, as well as an apartment building. They did make contact with three of those five owners. Unfortunately, the reaction was negative. They did not have any interest in HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 2003 Page 4 selling; in fact they were quite surprised the City was even considering looking at the site north of Werner's. The other owner was more ambivalent in terms of the issue, but he thinks in general there was a lack of interest in selling. Without willing sellers, it is very impractical to proceed north of Werner's, because it would not only be expensive but possibly controversial with the neighborhood. Mr. Fernelius stated in light of the above facts, it appears the original consensus they had at the joint meeting in May between the Council and the HRA to do a single-family development seems to be the most practical thing to pursue at this point and doing a combined development makes sense. Staff did talk to one of the owners about the existing alley along the University Avenue right-of-way. There is one property that still has access to that alley, and it would be ideal to close that off so the lots would expand all the way to the University Avenue right-of-way and maybe help dress up the appearance of that portion. That is something they have not discussed with the affected property owner, but is something they would evaluate. He will report back to the HRA what staff learns from those discussions. Mr. Fernelius stated the alley is still being used as an access to 59th Avenue. Ms. Gabel stated she didn't recall any garages that front the street. Mr. Fernelius believed all but one home accesses on 3�d Street. That home is located at 5923 3�a Street. If the alley were closed off, the existing garage would have to be reconfigured. They would have to work with the owner to improve the access. He thinks that would be the ideal situation for them to pursue and hopefully find a cooperative homeowner to do it. Mr. Fernelius stated in terms of the next steps in the process, they really are not asking for any action this evening. The approach at this point, unless the HRA directs them otherwise, is to prepare a draft RFP that they would view with the HRA and hopefully receive approval at the August meeting. The RFP would include both the Frank's and Werner's sites; they would not recommend any additional property acquisition. They would also notify the neighborhood about the direction of the project and inform them of the meeting in August which they would be welcome to attend and ask questions about the scope of the project and about the RFP itself, so the neighborhood is kept informed. Mr. Fernelius stated the other important piece of this is the Frank's Used Car building itself. They know it's been an eyesore for a number of years. To bring closure to that property, staff would recommend at the August meeting that the HRA adopt a resolution declaring the building as substandard for tax increment purposes. Mr. Fernelius outlined the following timeline: The RFP would be prepared and presented to the HRA in August; they would authorize the demolition of the Frank's building and also solicit developers during August and September, and then they would review the proposals in October. By November, they would select a developer for the project; and then start negotiations on a development contract. January would be a timeframe for approving that contract; however, it may take a little bit longer. The next steps would be to close of the sale of the land. At that point, the developer would come with the appropriate land use applications. A new plat would be needed for the Frank's site creating those lots, as well as a street vacation of 58th Avenue. Hopefully, by next spring construction would begin. Mr. Commers asked in terms of the timing, is it necessary that the Frank's building come down before they approve the TIF District? HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 2003 Page 5 Mr. Fernelius replied, no. He thinks from a practical standpoint, if they adopt a resolution, that gives them a window of three years in which to do a project. Mr. Commers asked what if they have some problems with the development? With the size and everything they know, it's going to be difficult to get somebody in there at this site. He has a concern that if they don't get somebody that is going to step forward and do this development, they have the timeframe wrong. Mr. Fernelius replied that is a legitimate concern, and if the HRA is more comfortable waiting until after they get the RFP's in and getting a developer they are satisfied with, they can certainly do that. It is not essential that the building be taken down. Ms. Gabel asked if the clock starts ticking on the TIF as soon as the building goes down. Mr. Fernelius replied, that is correct. Ms. Gabel asked where does the taking of the building fall into the possibility of these other funds? He had talked about the strong possibility of receiving some funds. Mr. Fernelius replied they have been approached by the County to apply for CDBG funds to help demolish the building. That would be something that would have to be done this summer. He believed they have up to 18 months to actually spend the funds. They could secure the funds for the demolition, wait until they get the developer in the door. Once they have a solid project, they could actually move ahead with the demolition if that is the preferred approach. So that would not affect their ability to access those dollars. Ms. Gabel asked why the County approached them. Mr. Fernelius stated they had applied for funds for the Gateway West project and they were turned down this year. The County came back and said there were some dollars recaptured from previous years and they would like to see a proposal from the City. They talked about two concepts. One was the demolition of the Frank's building and the second was write-down money to help with the buyers of the units once the development is completed. Mr. Mark Larson, 5923 - 3rd Street NE, stated his garage faces the alley. His only objection to taking the additional property to the north is that it's not worth anything to him, so he needs to be able to move even up and, with the price of housing now, he doesn't see how they can afford to develop on the property for what they would have to pay them for the houses. As far as the alley, ii they want to build two lots there, according to Grant, they need to remove some of 59th Avenue. The problem is that dead-end alley is already a miserable way to get into your house. It's not paved, it has grass growing in the middle of it and the snowplows virtually block it off in the winter. He has to drive over the curb to get out of the alley. When they rebuilt the curb last summer, he even objected to Public Works and offered to go out there with a shovel while the cement was still soft and fix it for them. Mr. Commers asked him how he comes out of his property. Mr. Larson replied along University Avenue, down the alley (59th). If they make 59th any narrower, that makes it even more difficult for him to get in and out. The only option would be for him to turn his garage around and face the street, but he has a narrow lot and he doesn't have room to put in a practical driveway, much less a legal driveway to get to the street. The only way to do it would be to buy some property from one of the neighbors. Again, he is not interested in doing that, so if they want to narrow 59th and cut off the alley and buy property from the neighbor and turn his HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 2003 Page 6 garage around and put in a 100 foot driveway, he supposed that is something they could do but he has no interest in paying for that. Mr. Commers asked as Mr. Larson comes down 59th, there is a curb that goes all the way back so he can't actually get out of the alley that way? Mr. Larson replied the problem is there is a(storm) sewer and the curb has to pass the sewer drain by a certain number of feet or something like that. There was some vandalism last summer on the vacant lot there, and the City sent over a bulldozer to fill in the holes. While the bulldozer was there, Mr. Larson asked the operator to push a bunch of dirt away from the fence and widened it up by three or four feet for him. So now, it is a lot better, but if they are going to put nice houses in there, that needs some attention for sure. He doesn't have any objections to what they want to do, building new houses or anything like that, he is just asking that they don't narrow the street without very expensive renovation of his property to give him access via 3�d Street. That would certainly be better, but he can't afford to do it and has no interest in doing it on his own. Mr. Fernelius stated the vacation of the north half of 59th is necessary. The way the Werner's lot is situated right now it is not large enough to subdivide into two lots and meet the zoning code in the Hyde Park neighborhood. They would need to actually vacate a portion of this street in order to create that second lot. That is why it is necessary to vacate that portion of 59th. However, it does raise a number of practical challenges, including the alley. There is a house to the south and that driveway also accesses 59th . Once the street is vacated, the character of the road changes from a street to a large driveway. So they have to work through those logistics. Mr. Commers asked what is between the Werner's lot and University. Mr. Fernelius replied there is an alley and then the fence. Mr. Meyer asked wouldn't the thing to do be to close off 59th completely? Mr. Fernelius replied if they vacated all of 59th Avenue, they would block off the access that the two properties have. He believed this section has all been vacated to the north so there is no opportunity to go north. Mr. Meyer stated the alternate would be to not try and make several lots out of the Werner's site, just one large lot and leave the streets and alley as they are, is that right? Mr. Fernelius replied that is one option. Ms. Gabel stated it is probably not terribly practical. Mr. Larson stated that would make a fine lot for older houses, a narrow dirt alley, a dead-end street and a rundown apartment building would surround a very nice house, but it. You wouldn't want to build a $300,000 house there. Mr. Meyer asked would you build a two $200,000 homes? He understands his comment, but he thinks it would be difficult to persuade two $200,000-$225,000 buyers to build on a site that is rather shabby for $300,000. He thinks they are trying to cut things awfully close and play with concepts here. They are still going to have to sell two $200,000 lots in a neighborhood that isn't the greatest. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 2003 Page 7 Ms. Gabel stated if you go down to the end of the corner to the north end, there are a couple of houses down there, at least one, that has to be a$200,000 house. They are probably close to that because they are fairly new. Ms. Gabel stated they are really going to wind up with an alley extension Mr. Fernelius replied, yes, he believed that is true. That is the reality; this is a less-than-ideal situation. Mr. Larson stated the house to the south is too close to even do it he believes. To the north there is a few more feet but not many and, again, they would have to buy the property from them in order to do that in the first place. Mr. Larson stated if he could move for an even trade, he would consider that. Mr. Commers told Mr. Fernelius to try to work on something to bring that to the HRA. He believed he would have to also consider what Mr. Meyer was saying. Mr. Fernelius stated those are all very good points. What they really need to do is sit down, identify what the issues are and then what the solutions are, and then attach a price tag. Then they can make an informed decision about whether or not it is worth pursuing. All they are asking for tonight is concurrence that they should at least continue to look at this as an option. If they need more time in order to plan it out property, then that is what they will do. Ms. Coni Gunnufson Olson, 5917 - 3�d Street NE, stated they live directly north of the Werner's site. She has already talked to Mr. Hickok and Grant Fernelius at length. She was relieved to hear the decision of the Commission at this point but felt this was a lot of bad spending on the part of the taxpayers' money to be putting a lot of money into the area and 10 years later, 5 years later, come back and say we're going to dump a whole bunch more and tear down the houses that have had a lot of work done. At the same time, she can understand the City's point that they want to make improvements. She guessed she was feeling the City has let the Hyde Park area down over the years; 7 or 8 years ago they had a major thrust to help Hyde Park clean up, acquiring some properties, make some substantial changes. What she saw were homeowners who had been there a long time either pushed out, bought out by a good deal (nothing wrong with that), and the rental properties continue to deteriorate. The loud music, the trash in the street, just inappropriate behavior in the neighborhood and nothing is done. You call the City, but nothing is done. Ms. Olson stated they stayed in Fridley when they were planning to leave. When the HRA money come through, they were in the process of leaving, they had other property and another loan ready to go to buy a bigger place, their kids were in the Fridley school system, their church and friends were here; they felt this was a unique little neighborhood. This is about as small a town as you can get in a first-string suburb where people take care of each other. She doesn't think the City recognizes the uniqueness of this area. If they make their offer good enough, maybe they'll think about it but the problem is, they are a few years from retiring. This is very economical living. Their house is completely maintenance free. They have taken advantage of the programs the City has given them, and they have worked hard to pay their bills. They have gutted every inch of their home. On the whole, she feels Fridley has a lot of good ideas. She feels the absentee landowners get by with a lot. The trash is piling up, the music is playing, junk all over the yard, 200 people in the yard on a Friday night and you have to shut the doors and windows and it's 80 degrees because you can't hear anything and it doesn't do any good to call the City anymore. Ms. Gabel asked if that was the apartment building across the street from her? HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 2003 Page 8 Ms. Olson replied, several apartment buildings. Ms. Gabel replied she knows that one is bad because she lives in the Hyde Park neighborhood. Mr. Commers stated Ms. Olson's comments are well taken, and the HRA was happy to see they were taking advantage of those programs. The HRA did set up a lot of programs initially that they thought would get greater participation from the Hyde Park area. For whatever reason, there seems to be a lot of resistance, and he wished everybody kept up his or her property like she did. Ms. Olson replied she thinks there are a lot of older people, a lot of extreme independence in Hyde Park that they are not going to find in other areas in Fridley. It's a very unique area. She stated maybe they could look at turning some of the four-plexes into a co-op home that people own versus an apartment with an absentee landlord that could care less. Ms. Gabel stated she knows that has always been an issue in that neighborhood, as she has lived there for 30 years. Ms. Olson stated there are options that could make that a very good area. When she moved into Fridley originally, the apartment building kitty corner from her was full of professionals yet it has slowly turned back and forth and been demolished and refurbished. She can see they would get a lot more benefit having homeowners there versus rental property. Everybody doesn't necessarily want a home. Mr. Commers asked Mr. Fernelius why he couldn't get a response from the owner of the apartment building. Mr. Fernelius replied the owner was non-responsive. Mr. Commers asked if the apartment building that was the problem is the one across 3�d Street. Ms. Gabel replied, yes, and there is one across from it that is getting bad again. Mr. Commers stated at least there are some good comments, and stated he thought Mr. Fernelius could go forward and take a look at everything and see what is the best way to go. Everybody has a price but then again it wouldn't hurt for him to get a sense of what these values are on these properties along here, especially if that other building at 5955 is almost vacant. That cannot be a moneymaking proposition for whoever owns it. Mr. Fernelius stated staff would do some more research and report back to the HRA. Ms. Gabel stated maybe Mr. Fernelius could talk to someone in the Rental Inspection Department about some of the issues with these apartment buildings. Those apartment buildings are really getting out of control. There is constantly junk everywhere and garbage in the streets, and it is just increasing. Mr. Commers stated he would think if it's loud, noisy, nuisance, disturbing, that the police would respond to those kinds of calls. He can't imagine they would ignore them. Mr. Scott Hickok, Community Development Director, replied there are some good points raised here and, as far as the rental inspection department, they do a systematic inspection of a quarter of the City's stock, so every fourth year they get back to the same unit. Certainly on a complaint basis they will come in far before that fourth year hits and come back more often if there are on- HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 2003 Page 9 going concerns. They also do have a neighborhood resource (Police) officer they can talk to about the concerns they are hearing and see if there are some issues there to follow up on. Mr. Commers asked if he could give the HRA a report at the August meeting regarding the last rental inspection and what the neighborhood resource officer has to say about the buildings. Mr. Hickok stated staff could do that. 5. HOUSING PROGRAMS Mr. Commers stated Mr. Fernelius and Mr. Hickok have provided the HRA with a report about questions raised at the June meeting. The members thought it was Ms. Schnabel that had brought this issue up. Ms. Gabel stated that maybe this item could be continued until the next meeting. Mr. Commers agreed and stated that this item would be held over and discussed at the August meeting. 6. UNITED DEFENSE LOCATION Mr. Hickok stated Mr. Fernelius, Mr. Paul Bolin, Planning Coordinator, and he had a very good meeting that day with United Defense in an effort to follow-up on their discussion they had at the Commission-Council joint meeting about United Defense and the future of that site. They learned a lot of very interesting things. One of the key things is United Defense is very enthusiastic about the discussion and about the City working proactively together. They said the timing couldn't be better. Right now they are looking very closely at their strategic plan and, in a nutshell, they have 1 million square feet of space demands and they have 2 million square feet of building they are dealing with. As a result, they have an enormous amount of excess overhead expense, and they are really looking at options. Mr. Hickok stated United Defense is certainly interested in the concept of going forward, talking potentially even about a master plan for their site and trying to figure out what the best utilization of their space may be and how that might relate to other pieces of that site. They talked about the potential for demolition and asked some very good questions about tax increment finance dollars and how that would work in terms of site improvements they might need or demolition. City staff would really like to continue that dialogue with them and, if it ultimately ends up that a joint consultant is necessary, they would bring that information back to the HRA and ask for the HRA's concurrence before any kind of formal arrangements were made. The discussion was very encouraging. Mr. Fernelius stated that, strategically, United Defense is looking at a number of different options and the one that is most desirable is to stay here in Fridley. They indicated that it is extremely expensive for them to continue to operate that building. They only need about half of it, and they have to ventilate and provide heat to space that is not functional for their purposes. How they get from where they are now to a point where they can make that facility into what they want, that's what they need to decide but he thinks they all left the meeting very enthused. He also believed it was a very productive meeting. Mr. Commers stated he hopes staff can continue to accumulate information. It sounded like it was a friendly and cooperative exchange of ideas and information. It is the last big undeveloped piece of property that could be redeveloped into something that would be very nice for the City of Fridley HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 2003 Paqe 10 and create additional taxes for the City; but, of course, the City does not want to lose them as an employer either. So it is kind of a delicate line. He asked how did the warehouse originally make contact? Mr. Hickok replied he believed Murphy Warehouse saw this as an opportunity and went to United Defense. He believed they see the land right next to the rail as being a real potential boon for them. Staff will bring back information as it develops. 7. MONTHLY HOUSING REPORT Mr. Fernelius stated that at the last meeting there were some questions about delinquencies. This is a little bit sensitive area due to data privacy issues. What he thought he would do is provide them with a report on the overall program. The first report which is entitled "Fridley Loan Program Delinquency Rates" shows the delinquency rates for 2003 and 2002 - three categories of delinquencies that both loan servicing companies are most concerned about and what the auditor looks at when they look at our loan program. Most categories are loans that are delinquent 1 to 30 days, 31 to 60 days, and over 60 days. The percentages apply to the percentage of the loans in the portfolio that fall in those categories. The bottom figure in the total column is the total percent of the loans that would be delinquent in any particular month. This gives them a comparison basically month-by-month and year-to-year to show them that, while there is some variation, they are around 5%2 to 6 percent of the portfolio. Mr. Fernelius stated one page looks at other loan portfolios that are serviced by the Community Reinvestment Fund. They provided him with examples of eight other portfolios that they service and gave him the breakdown of information. If they look at the statistics in the various columns and the total percent that are delinquent, they will see that Fridley is right in the middle in terms of delinquencies. He believed Fridley is in good shape and are consistent with what they have always planned for in the program, which is to have a delinquency rate anywhere from 5 to 10 percent. It is his understanding that this level is acceptable based on industry standards and also acceptable to the auditors. 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 JULY 10, 2003, MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY ADJOURNED AT 8:44 P.M. Respectfully submitted, Denise M. Letendre, Recording Secretary