Loading...
HRA 10/02/2003 - 29524CITY OF FRIDLEY �, HOUSING AND REDEVELOPMENT AUTHORITY MEETING OCTOBER 2, 2003 CALL TO ORDER: Chairperson Commers called the October 2, 2003, Housing and Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, John Meyer, Pat Gabel, Bill Holm Members Absent: None Others Present: Scott Hickok, Community development Director Paul Eisenmenger, HRA Accountant Kimberlyn Nordling, 4301 McLeod St NE, Columbia Heights lone Alaspa, 5925 3`d St NE APPROVAL THE SEPTEMBER 4 2003 HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES: MOTION by Mr. Holm, seconded by Mr. Meyer, to approve the September 4, 2003, HRA minutes. �'1 Mr. Eisenmenger stated that on page 9, agenda item #7, second line of the first sentence, the word "OSHA" should be changed to "OSA". UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MINUTES APPROVED AS AMENDED. CONSENT ITEMS: 1. CONSIDER RESOLUTIONS DECLARING SUBSTANDARD PROPERTY ,jRESOLUTION HRA 5 — 2003) 2. CONSIDER RESOLUTIONS AUTHORIZING INTERFUND LOANS FROM THE GENERAL FUND�RESOLUTIONS HRA 3— 2003 AND HRA 4— 2003) 3. CLAIMS AND EXPENSES 4. APPROVE 2004 MEETING DATES MOTION by Ms. Schnabel, seconded by Mr. Meyer, to remove agenda item #1, �Consider Resolutions Declaring Substandard Property" from the �Consent Items" and move it to the "Action Items". UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. �� MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the Consent Agenda with the removal of agenda item #1. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 2, 2003 PAGE 2 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE � MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: 5. EVALUATE S-2 ZONING REQUEST FOR OLD CENTRAL PROPERTIES Mr. Hickok stated the rezoning request is by Town Center Development LLC for the areas on the west side of Old Central between Rice Creek Road and Mississippi Street. The rezoning affects several parcels outside the proposed Town Center Development area. This area includes Advance Companies, Ziebart, and two parcels owned by the HRA. Mr. Hickok stated the HRA is being asked to consider the developer's proposal and whether to consent to the S-2 rezoning request. The next step by the developer is to submit a formal rezoning application for consideration by the Planning Commission and the City Council. Mr. Hickok stated Town Center Development LLC of Maple Grove, Minnesota, is proposing a 55-unit senior condominium project. The units will be for sale and will be in the price range of $!70,000 to $190,000. The proposal is for a four-story building with underground parking. All the units will have two bedrooms and two bathrooms ranging in size from 1,138 square feet to 1,255 square feet. Mr. Hickok stated the developer intends to keep the Sandee's Restaurant building and undertake renovation work on that building. The home currently occupied by Tamarisk would be removed for the development. The developer has control of the 3.5 acre parcel that includes ^ Sandee's, Tamarisk, and the vacant lot south of the parking area. Mr. Hickok stated the development area is an odd mix of zoning designations. The City's current thinking is to look at this entire area as one zoning classification, and that could be done through an S-2, Redevelopment, rezoning. Mr. Hickok stated this area has been identified in the Comprehensive Plan for redevelopment. The HRA acquired the finro parcels in 1999 in anticipation of future redevelopment opportunities. The S-2 zoning classification is most appropriate for redevelopment and allows greater flexibility with regard to issues like density and setbacks. Mr. Hickok stated the site plan is subject to review and approval by the City Council prior to issuing building permits. Rezoning of the west side of the block avoids spot zoning and makes the zoning consistent. Affected landowners, Ziebart and Advance, have already consented to the rezoning request. Mr. Hickok stated staff asks the HRA to consent to the rezoning to S-2 by Town Center Development LLC for the parcels under the HRA's ownership, legally described as Lots 2, 3, & 5, Block 1, Herwal Rice Creek Terrace. Mr. Commers asked if the developer was going to be seeking any assistance from the HRA. Mr. Hickok stated that, thus far, the developer has not asked for any assistance. Mr. Commers asked if there was any reassurance that the prices would remain in the $170,000 � to $190,000 price range, or could the developer raise those prices? HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 2, 2003 PAGE 3 Mr. Hickok stated that since the City has no money in this project, it somewhat limits the City's �� input on the developer's marketing strategy. But, the thing that might provide some comfort is that the developer did have a marketing study, a demographic analysis, and a financial analysis done to determine what this area would support. The developer has been very careful in the preliminary stages of the development to listen to the results done by housing consultants. One of things the consultants told the developer was that the market values should reside in this price range. So, all indications are that the developer is going to work very hard to make that happen. Mr. Commers asked if the City Council would review and approve the quality that goes into this project. Mr. Hickok stated there is a master plan approval with an S-Z zoning, and the City Council will have the authority to ask a lot of questions about that master plan and to make comments, suggestions, and stipulations, if necessary. Ms. Schnabel asked if Town Center Development LLC has built a similar project in the metropolitan area. Mr. Hickok stated Town Center Development LLC has done quite a bit of development in the metropolitan area, and City staff has visited some of these developments. Other developments are in Maple Grove and Brooklyn Park in the northern metro area and on the east edge of the metro area. Staff has digital photos of those projects and can make them available to the HRA if they are interested. They are very nice projects. � Ms. Schnabel stated one thing that concerned her was the underground parking, because she believed this area is a rather wet area. Mr. Hickok stated the developer needs to do an overall civil analysis that would have hydrology included. The design of the parking garage is probably more accurately stated as half below grade and half above grade. Mr. Meyer asked what will happen to Sandee's Restaurant? Mr. Hickok stated the developer intends to revamp the restaurant building, to change a lot of the exterior character of the building, to make it better co-exist with the condominium project. The developer sees this as an opportunity to provide some convenience for seniors in that area. Mr. Hickok stated the City has asked the developer to also work with the County to consider things like additional right-of-way and/or access onto the County roadway. The County has indicated it is interested in up to 30 more feet of width of right-of-way on the northern side along Mississippi Street running full east and west of the development and up to 10 feet along the eastem edge (western side of Old Central). That puts the property lines at the building face itself for Sandee's Restaurant. So, at minimum, the City would be asking the developer to consider a different arrangement so the building is not right on the right-of-way. It was and again is starting to become more of a common practice to see property lines close to building walls. So that, in and of itself, if the developer can deal with the outdoor dining area, would not be an issue that would stop the development. Mr. Commers stated he thought the Sandee's Restaurant building had some preservation rights. �� Mr. Hickok stated he believed the history of the building is being researched. It is probably one of Fridley's most aged and historic buildings. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 2, 2003 PAGE 4 Mr. Holm asked what are the uses and/or restrictions of the S-2 zoning? �"'� Mr. Hickok stated the S-2 zoning is really open to master plan review and approval so the spectrum of zoning uses in the City would be possible in an S-2 development district; however, the City Council has the ultimate authority in the decision-making process. It is a lot like a planned unit development where there are some "give and take" issues such as setbacks in favor of the developer, but ultimate review of uses and the discretion to say "no" lies with the City Council. That is different than in standard zoning. Ms. Gabel asked if the development would have any common rooms for the homeowners. Common areas that can be used for gatherings and activities help develop a"sense of community". Mr. Hickok stated there are some common areas off the lobby at the ground floor level of the building. He believed both buildings, the 55 unit building proposed by Town Center Development, and the 88-unit senior condominium being proposed by a different developer for the southeast comer of Mississippi Street and Old Central would have a guest suite for invited guests can stay. Also, the 55-unit building has been set into the landscape for common space for outdoor enjoyment as well. Mr. Meyer stated that after the rezoning is approved and later down the line, can the HRA or the City insist on the standards of construction and appearance to be incorporated into the project? Mr. Hickok stated the HRA has the ability to do that on its own properties. On the property being considered by Town Center Development, the City has the power of suggestion and the ability to review building elevations as part of the master plan. The choice of construction � materials is really a developer decision and is directly related to what they see in the market and what they need to price the units to make the project work. So, there is some ability, but no total control. Mr. Commers stated Mr. Meyer has made a good point. He does not remember staff ever coming to the HRA in the past asking that the HRA recommend approval of a rezoning when they are not directly involved. Is a recommendation to mean the HRA approves the project? Can they send a message through the rezoning that the HRA is interested and comfortable with the redevelopment of the area? He is not sure he wants it to be construed that the HRA is recommending this particular project. Mr. Hickok stated that is an excellent point. He believed the HRA can send the message that their decision to endorse the S-2 rezoning does not necessarily endorse the Town Center Development project, but that the HRA does endorse redevelopment consistent with the Comprehensive Plan. Mr. Commers stated it appears that without the HRA lots, the proposed development would have a drainage problem. So, that is another issue. At this point, the HRA has not seen any development plans, and he is not sure the HRA should just automatically agree to approve this rezoning without more information on the project. Mr. Hickok stated that in both cases, the developers are planning their own on-site storage for ponding. So, those are issues that cannot be addressed at this time. Mr. Commers stated he did not see a problem in saying the HRA is amenable to redevelopment � in this area and just leave it at that. Mr. Meyer stated he liked that generalized view. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 2, 2003 PAGE 5 ^ MOTION by Mr. Meyer, seconded by Ms. Schnabel, that the HRA is in favor of redevelopment in the area around Old Central Avenue and Mississippi Street. Mr. Hickok stated that without the HRA's approval of the S-2 rezoning for the Town Center Development, the rezoning will fail. It is important that the HRA know that the City could not eliminate just the HRA parcels from the rezoning. In order to make the development fit matching the larger vision of a master plan development, the whole block needs to be rezoned to S-2, as opposed to pieces of it. However, it would be appropriate for the HRA to say they agree with redevelopment, that S-2 as a zoning designation on the HRA parcels is acceptable, but it does not mean the HRA is necessarily endorsing the Town Center project. This then says only that the rezoning is right, but not necessarily the master plan. MOTION TO AMEND by Mr. Meyer, seconded by Ms. Schnabel, that the HRA approves and supports redevelopment in this area, has no objection to the HRA lots being rezoned to S-2, but is not specifically approving the Town Center Development LLC project and would want some approval of the final project if it is going to include the HRA's lots. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 6. CONSIDER RESOLUTION DECLARING SUBSTANDARD PROPERTY �RESOLUTION HRA 5— 2003) -(moved from Consent Items) Ms. Schnabel asked if the dwellings at 5917 3`� Street and 5923 3�d Street are declared � "substandard", does that mean they must be demolished, or are they salvageable where an outside party can purchase the buildings and move them to another location? Mr. Hickok stated the necessity to declare substandard housing is directly tied to the City's desire to redevelop and create an tax increment district. This step is necessary for the City to say that substandard housing existed, and demolition could happen. This would allow them to begin demolition prior to creating the tax increment district. But, as Ms. Schnabel suggested, if someone was interested in purchasing a house and moving it elsewhere, that is possible because that house may not be substandard somewhere else. Mr. Meyer stated he has a problem with "structurally substandard" as defined in the Tax Increment Act. Where are they with respect to those words? Mr. Hickok stated �substandard" is a broad area and covers more area than just the structural integrity of the building. By the HRA authorizing staff to evaluate this and later create a tax increment district, they are allowing staff to utilize the findings of their analysis to contribute to the blight that is necessary, whether substandard characteristics or blight characteristics, to include the property in creating a tax increment district. Mr. Commers stated the resolution as written does make the finding; it isn't just that staff may go out and find whether something exists. It should be based at this moment on the HRA having sufficient evidence to make the finding. So, if the HRA approves this resolution, he is assuming that staff will have backup data that allows the HRA to make that finding. Mr. Hickok stated that is correct. Unfortunately, Mr. Fernelius was unable to attend the meeting � as he could describe precisely what has happened and precisely the analysis that has been done, etc. If the HRA is not comfortable in approving this resolution, it can be tabled until the next meeting. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 2, 2003 PAGE 6 Mr. Commers stated he believed the HRA needs fairly specific support for a finding. Then, staff can provide more factual support at the next meeting. ^ MOTION by Ms. Schnabel, seconded by Mr. Meyer, to table consideration of a resolution declaring substandard property until the November meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. INFORMATION ITEMS: 7. GATEWAY WEST UPDATE Ms. Alaspa stated the City wants to buy their property at 5925 3`" Street, and they are willing to sell if they can get the same replacement housing payment that was given to the neighbors at 5923 3"� Street. There is a$5,000 difference. They also have a$3,000 grant debt, and they would like to have half (the City's half� of that forgiven as they did some remodeling about a year ago through the HRA's remodeling program. Ms. Alaspa stated she and her husband are both disabled, and any house they move into has to suit their needs. They cannot do things like painting or repairs, such as wider doors and railings, as the home would have to be handicap accessible. Mr. Hickok stated he would recommend that they not negotiate at this meeting. He would invite the Alaspas to come back for more discussions and talk about the things necessary in a handicap-accessible home. Staff has not had an opportunity to discuss those things. �--1 Mr. Commers stated it would good for the Alaspas to meet with staff again and see if some mutual arrangements can be made. He thanked them for coming to the meeting. 8. UPDATE ON SITE PLAN AMENDMENTS FOR COLUMBIA PARK CLINIC Mr. Hickok stated this is an information item. It is a master plan modification. The Columbia Park Medical Group are proposing minor modification to their building, landscaping, and parking. Since this is a master plan, this is not something that was decided just administratively, but had the consideration of the HRA as well. These plans were included in the HRA's agenda packet. Mr. Hickok stated Columbia Park Medical Group plans to expand the building approximately 10,000 square feet. The expansion will be in finro areas, a two-story addition in the northwest corner and an addition on the eastern face that bumps out the building somewhat to create a finro-story addition that will architecturally match what exists but provides a better intemal floor plan. Mr. Hickok stated that 163 parking stalls are required, but the modification will increase the parking to 244 parking stalls, so even with the addition, the clinic will be well above the required parking. Staff believes this is a favorable solution for the Columbia Park Clinic in that the clinic cleans up some irregularities about the site, in addition to better circulation and a landscape plan that is suitable and attractive for the site. Mr. Hickok stated the modified master plan will also go the Planning Commission and City Council for authorization and approval. ^ Ms. Schnabel and Mr. Meyer expressed concern about the narrowing of stalls from 10 feet to 9 feet, particularly with all the new large SUVs, vans, and trucks. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 2, 2003 PAGE 7 ^ Ms. Schnabel stated she would like to see staff recommend a mix of widths for the parking— some 10 feet wide and some 9 feet wide. Mr. Commers stated that if it would work, the 9 foot-wide stalls should be for employee parking. 9. UPDATE ON TIF PLAN AMENDMENTS Mr. Commers stated he did not believe any action is necessary, other than that they need to understand that they are going to have to make some technical amendments in order to protect their funds and shift them around. Mr. Hickok stated that is correct. The calendar for the proposed chronology modification of Redevelopment Project No. 1 and Tax Increment Financing Districts Nos. 1, 2, 3, 6, 7. 9, 11, 12, 13, 14, 16, 17 is included in the agenda packet. 10. 2004 HRA BUDGET PREPARATION UPDATE Mr. Hickok stated a draft of the 2004 HRA budget should be available for the November meeting for discussion and changes, with a final draft available at the December meeting. 11. MONTHLY HOUSING REPORT Mr. Hickok stated Mr. Fernelius was not at the meeting to highlight anything in the Housing Report; however, he would be glad to try to answer any questions. � Mr. Meyer stated he was just curious why more people were not taking advantage of these great programs being offered by the City. �'�� Mr. Hickok stated the City does try to promote the programs through available information at the front counter at the Municipal Center, through the City newsletter, and at the annual North Metro Garden Fair. Even this meeting serves as a commercial. Staff would welcome people to call in and get the information they need to change the characteristics of their home and more wisely spend their energy dollars. ADJOURNMENT: MOTION made by Ms. Gabel, seconded by Ms. Schnabel, to adjourn the October 2, 2003, HRA meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE OCTOBER 2, 2003, HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 9:25 P.M. Res ectfully sub itted, Lyn Saba Recording Secretary