HRA 07/01/2004 - 6234Crailt-
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING
Thursday, July 1, 2004, 7:30 P.M.
AGENDA
LOCATION: Council Chambers (upper level)
CALL TO ORDER:
ROLL CALL:
APPROVAL OF MINUTES:
June 3, 2004
CONSENT AGENDA:
resolution Approving Purchase of 5931 — V Street NE ........................ ..............................1
vConsider 2005 Membership in Minnesota Solutions ............................ ............................... 2
`- onsider Claims & Expenses ........................................................... ..............................3
ACTION:
Public Hearing Regarding Sale of Ashton Avenue Property .................... ..............................4
Resolution to Approve Sale of Ashton Avenue Property to Gilmore Construction
and Authorize Execution of Contract for Private Redevelopment ............. ..............................5
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INFORMATION ITEMS:
✓Joint Meeting with City Council on June 28 ......................................... ..............................6
[;Apdate on Gateway West 7
Update on Target Office Building ..................................................... ..............................8
Follow -Up on Medtronic Discussion ................................................... ..............................9
MonthlyHousing Report ................................................................. .............................10
ADJOURNMENT:
CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY
JUNE 3, 2004
CALL TO ORDER:
Chairperson Commers called the May 6, 2004 Housing and Redevelopment Authority
meeting to order at 7:30 p.m.
ROLL CALL:
Members Pesent: Virginia Schnabel
Lary Commers
Pat Gabel
William Holm.
Members Absent: John Meyer
Others Present: Grant Femelius, Assistant HRA Director
Scott Hickok, Community Development Director
Rebecca Brazys, Recording Secretary
APPROVAL OF MINUTES — May 6, 2004
MOTION by Mr. Holm, seconded by Ms. Gabel, to approve the minutes of the
May 6 meeting.
Ms. Schnabel referred to the paragraph on the last page of the minutes where she had
questioned the relationship between Paul Baaken, who would be performing the
appraisal for the HRA on the Medtronic property, and Earl Baaken, the founder of
Medtronic. She explained that she was able to confirm through family members that
there is no relationship and, therefore, no conflict.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION TO THE APPROVE THE MINUTES CARRIED UNANIMOUSLY.
CONSENT AGENDA
➢ Consider claims and expenses.
MOTION by Ms. Schnabel, seconded by Ms. Gabel, to adopt the consent agenda.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — MAY 6, 2004 Page 2 of 7
ACTION:
➢ Conduct Annual Meeting and Elect HRA Officers
MOTION by Ms. Schnabel, seconded by Ms. Gabel, to nominate Larry Commers as
Chairperson.
MOTION by Mr. Holm, seconded by Ms. Gabel, to close the nominations.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE NOMINATION CARRIED UNANIMOUSLY.
MOTION by Ms. Gabel, seconded by Mr. Holm, to nominate Ms. Schnabel as Vice
Chairperson.
MOTION by Mr. Holm, seconded by Ms. Gabel to close the nominations.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE NOMINATION CARRIED UNANIMOUSLY.
INFORMATION ITEMS:
➢ Ashton Avenue Bid Summary
Mr. Femelius reported that one bid was received for the Ashton Avenue lot. This bid
was from Gilmore Construction in the amount of $60,000, with the minimum acceptable
bid set at $57,500. Gilmore Construction owns the lot immediately north of the property
in question and plans to develop both lots at the same time. They propose to build a
1180 square foot modified -two story home with a three car attached garage. Mr.
Femelius reviewed the floor plans for the house. There will be 1180 square finished
square feet with additional square footage on two unfinished levels.
The home will have an estimated sale price of $230,000. The requirement in order to
submit a bid was $225,000. The builder has met all the requirements in order to
prepare a bid. They are also licensed and in good standing with the State of Minnesota.
The staff did check with the Commerce Department and Gilmore Construction has an
active license and there are no enforcement actions against this builder.
Mr.Femelius stated the staff recommends the HRA award the bid to Gilmore
Construction subject to the following conditions:
1. That the HRA hold a public hearing at the next regular HRA meeting (which is
required before we actually authorize the sale of the property.)
2. That Gilmore Construction is in compliance of all the terms and conditions of our
housing replacement program.
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — MAY 6, 2004 Page 3 of 7
3. That Gilmore Construction executes the appropriate contract documents in order
to complete the transaction.
Mr. Femelius explained the next step will be to schedule the public hearing for July 1
and will work with the builder to refine the house plans and address a couple of issues
from a zoning perspective. The revised plans and the development agreement will be
brought back to the HRA at the July 1 meeting.
Mr. Commers asked what the development agreement does beyond the sale
agreement.
Mr. Femelius responded that the development agreement outlines the obligations of
both parties in terms of closing date, who's responsible for taxes, what happens in the
event the builder doesn't construct the house, and other details.
Ms. Schnabel asked if the development agreement includes the requirements we may
want to include in terms of the finish of the house, landscaping requirements, and other
such issues.
Mr. Femelius stated the staff has listed as an exhibit to the agreement the quality of
materials to be used in this home but we can add those items to the development
agreement.
Ms. Schnabel asked if they plan to construct a single family home on the lot immediately
north.
Mr. Femelius stated that it is his understanding they will build a single - family home on
both lots.
MOTION by Ms. Gabel, seconded by Ms. Schnabel, to accept the offer of $60,000 from
Gilmore Construction for the Ashton Avenue lot.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION TO ACCEPT THE BID CARRIED UNANIMOUSLY.
MOTION by Ms. Schnabel, seconded by Ms. Gabel, to schedule a public hearing for the
Ashton Avenue lot sale at the July 1 meeting.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION TO SET THE PUBLIC HEARING CARRIED UNANIMOUSLY.
➢ Gateway West Update
Mr. Fernelius stated that after the last HRA meeting the staff was contacted by Eileen
Pawluk, 5931 3rd Street, who indicated that Ms. Pawluk was no longer living on the
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — MAY 6, 2004 Page 4 of 7
property and was interested in selling the property. The staff had the property
appraised by Lake State Realty Services. Also, the relocation consultant looked at the
property and identified a comparable replacement dwelling so that the staff has a
handle on what the relocation costs will be. On June 1, the staff met with the family,
presented an offer of $92,000 and this offer was accepted today. They are in the
process of signing the purchase agreement and Mr. Femelius does have a verbal
agreement of acceptance. Ms. Pawluk will have to move in a relatively short period of
time so she would like the HRA approval this evening.
Mr. Femelius explained that a comparable property has been identified by the relocation
consultant at approximately $120,000, which is a difference of $28,000 between the
purchase prices. He explained the Uniform Relocation Act governs this requirement.
Mr. Holm asked how this compares to the other properties the City has acquired in that
area.
Mr. Fernelius stated this property is less expensive.
MOTION by Mr. Holm, seconded by Ms. Schnabel, to authorize the staff to enter into a
purchase agreement with Eileen Pawluk for the purchase of the property located at
5931 3`d Street NE in the amount of $92,000.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION TO AUTHORIZE THE STAFF TO ENTER INTO A PURCHASE
AGREEMENT WITH EILEEN PAWLUK CARRIED UNANIMOUSLY.
Continuing the Gateway West discussion, Mr. Femelius stated the staff met with the
owners of 271 and 281 57th Place oust north of the Burger King), which are two
properties the staff had tried to acquire two years ago. Those owners are now
interested in negotiating with the HRA. We are currently having the properties
appraised and plan to negotiate with the owners. We'd like to come back with purchase
agreements to the July 1 meeting.
Mr. Fernelius also stated the staff has made no additional progress with the owner of
the four -plex on the north end of the Gateway West site. Two attempts have been
made to contact the owner and he has not responded to voicemail messages. The staff
would appreciate some direction from HRA members whether to proceed with
condemnation or let the property go. The four -plex appears to be vacant. There is no
rental license for the four -plex. The owner is current on taxes and utility payments.
Mr. Holm stated the City should just let this property go, if the owner is not interested in
negotiating. Condemnation is more expensive and he did not believe it to be a good
option.
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — MAY 6, 2004
Page 5 of 7
Chairperson Commers stated the HRA has not favored condemning personal
residences unless there is no other choice. The owner can't rent the property, it's
vacant, and it doesn't make any sense why he won't negotiate.
Ms. Schnabel questioned what process is required for obtaining a rental license.
Mr. Femelius explained the fire department issues rental license. The owner would
have to apply for the license, an inspection would be done and the owner would be
required to address any issues cited during the inspection. He added that the last
information the staff had was that the property is in pretty tough shape in the interior.
Also, a previous owner had tried to convert the building to an office use until the City
intervened.
Mr. Hikock concurred that an inspection would be done if the owner applies for a rental
license. Also, because of the history of this property, they would immediately check the
condition of the property to see if there are still four rental units and what concerns need
to be addressed.
Chairperson Commers commented that the condition of the property would detract from
the appraised fair market value. Also, with no current rental history, that would be
another issue. He added that the property is an eyesore and he wondered how the
surrounding property owners feel about it.
Ms. Gable pointed out that there are no tenants so there is no issue of displacing
anyone from the building.
Ms. Schnabel stated she is a little reluctant to do the condemnation at this point. She
suggested the HRA review the situation in three months to give some time to see what
transpires. She stated she would like to have an inspection done to have a better
understanding of the condition of the property.
Mr. Femelius explained that if the four -plex property were obtained, it would only add a
seventh lot; without it there would be six. What the four -plex property would allow would
be to add the seventh lot and possibly increase the size of the other lots.
Mr. Holm asked if proceeding with Gateway West now without the four -plex property
makes it more difficult to proceed with condemnation at a later date.
Mr. Fernelius stated it would not. But it would be better to assemble all of the land up
front. We don't have to act tonight, however.
After some discussion, Chairperson Commers suggested that the staff ask the City
attorney to contact the owner and schedule a meeting to try and reach a resolution.
Chairperson Commers questioned the figures on the last page of the Gateway West
report.
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — MAY 6, 2004 Page 6 of
Mr. Femelius reviewed the figures and determined the far right hand column was
incorrect and will have to be retabulated.
➢ Update on Settlement of Tax Valuation for Medtronic Headquarters
Chairperson Commers had some questions regarding this matter and Mr. Pribyl agreed
to investigate and respond.
➢ Monthly Housing Report
Mr. Femelius explained he included a new report for this month entitled "Application
Summary" which will give the HRA members a sense of how many applications are
being sent out and how many are being processed. For May, over 50 applications were
sent out for the month of May for the revolving loan fund and three loans were closed.
Not everyone who receives an application ends up submitting it. The Loan Origination
report reflects no new activity for May. The Loan Servicing report for the month of April
shows the collections for our various loan programs and outstanding principal balance
as well as an indication of delinquencies. The delinquencies have stayed fairly constant
over the past year. The last report is a summary of our Remodeling Advisor and
Operation Insulation programs. We've had a total of 28 appointments, which is a little
over half way to the goal of 50. For the year, we've had a total of 10 appointments for
the remodeling advisor with a goal of 25 visits.
ADJOURNMENT:
MOTION by Ms. Schnabel, seconded by Ms. Gabel, to adjourn.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MEETING ADJOURNED AT 8:50 PM.
Respectfully submitted by,
Rebecca Brazys
Recording Secretary
Date:
To:
From:
Subject:
VENDOR
CEE
Krass Monroe
Wilson Development Services
Ehlers & Associates
Anoka County
Anoka County
Lake State Realty Services
Lake State Realty Services
June 25, 2004
HRA Commission Members
Paul Eisenmenger - HRA Accountant
HRA Expenses For Approval
DESCRIPTION
May 2004 home energy inspections
May 2004 professional services rendered
Professional Services rendered for sale of 5931 3rd St NE
Quick -TIF 7.0 software used for completing 2003 TIF reports
2004 property taxes for 5925 3rd St
2004 property taxes for 5923 3rd St
Professional Services rendered - 271 57th St NE
Professional Services rendered - 281 57th St NE
AMOUNT
500.00
925.00
852.25
266.25
639.82
851.58
575.00
575.00
Total: $ 5,184.90
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Fridley Housing and
Redevelopment Authority
MEMORANDUM
DATE: June 24, 2004 Item #1
(%y
TO: William W. Burns, HRA Executive Director (Consent) `
FROM: Grant Fernelius, Assistant HRA Director
SUBJECT: Consider Resolution Approving Purchase of 5931 3`d Street NE
At the June 3`d meeting, the HRA approved the purchase of 59313 rd Street NE from
Aileen Pawluk for $92,000. As a matter of past practice, the HRA has approved
property acquisitions by resolution. Due to timing issues, staff was unable to prepare a
resolution for the June packet. The attached resolution fulfills this requirement.
Recommendation
Staff recommends that the Authority approve the attached resolution authorizing
execution and delivery of a purchase agreement with Aileen Pawluk for the real property
located at 5931 3`d Street NE.
RESOLUTION HRA 2004 -1
A RESOLUTION AUTHORIZING EXECUTION AND
DELIVERY OF A PURCHASE AGREEMENT WITH AILEEN
M. PAWLUK FOR THE REAL PROPERTY LOCATED AT
59313" STREET, FRIDLEY, MINNESOTA
BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and
Redevelopment Authority in and for the City of Fridley (the "Authority") as follows:
Section 1. Recitals.
1.01 Aileen M. Pawluk, a single person (the "Owner') is the fee owner of the real property
located at 5931 3rd Street NE (the "Property") and legally described Lot 24, Block 12, Hyde Park,
Anoka County, Minnesota.
1.02 At their June 3, 2004 meeting, the Authority approved an offer to voluntarily acquire
the Property from the Owner in the amount of $92,000, plus provide additional financial assistance
as required under the federal Uniform Relocation Act.
Section 2. Findings.
2.01 The Authority hereby finds that acquisition of the Property and execution of a
purchase agreement (the "Agreement ") with the Owner furthers the goals and objectives of the
Authority's Redevelopment Plan.
Section 3. Authorization for Execution and Delivery.
The Chair and the Executive Director of the Authority are hereby
authorized to execute and deliver the Agreement to the Owner.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY THIS DAY OF , 2004.
ATTEST:
William W. Burns, Executive Director
Lawrence R. Commers, Chair
Fridley Housing and
Redevelopment Authority
MEMORANDUM
DATE: June 24, 2004 item #2
TO: William W. Burns, HRA Executive Director ('�� (Consent)
FROM: Grant Fernelius, Assistant HRA Director
SUBJECT: Consider Membership in Minnesota Solutions for 2005 Legislative
Session
As you are aware, Minnesota Solutions is a consortium of communities throughout the
state that focuses on redevelopment issues, such as tax increment financing,
redevelopment funding, soil contamination and related issues. Bonnie Balach, the
group's Executive Director, spends a great deal of time working on legislative issues
that affect communities like Fridley. She has been a valuable advocate for inner -ring
suburbs and older cities that have redevelopment needs. Frankly, there are very few
individuals at the state capitol working on these specialized issues.
Attached is a memo from Ms. Balach that provides an update on redevelopment issues
during the 2004 legislative session. As many are aware, very little was accomplished
this past session. Nonetheless, we believe it is important to remain active and engaged
at the Legislature. There are many important issues that need to be addressed in the
2005 session.
Recommendation
Staff recommends that the Authority participate in Minnesota Solutions for 2005 at cost
of $1,200.
DATE:
June 8, 2004
TO:
Grant Fernelius
City of Fridley
FROM:
Bonnie Balach
Minnesota Solutions
SUBJECT:
Minnesota Solutions Contribution.
It's that time of year again. Attached you will find an invoice. Generally, I use this opportunity to
"brag" about the valuable progress achieved on your behalf by Minnesota Solutions. It makes
asking you for money a whole lot easier. As you know, though, the dust has settled on the 2004
regular session without significant progress being made on any of our issues. There is still hope.
It looks like a special session will be called -- probably before the end of June. A bonding bill is
certain to occupy a prominent place on the agenda for the special session. That is good news for
funding for the Redevelopment Account. Following is a brief summary of the positions of the
Governor, House and Senate in this regard. Obviously, we prefer the Governor's proposed
funding and the House language, which is more even - handed with respect to the split between
urban and rural areas. As far as other public issues are concerned, there will almost certainly be
a public finance bill comprised of non - controversial issues. Non - controversial is a term that is
subject to interpretation and we'll do whatever we can to push the envelope so that our TIF
proposal can be considered:
Governor's proposal:
• Program name: Development Account
• Jurisdiction: Statewide
• Total funding: $25M with $15M to be earmarked for bioscience activities in the
bioscience zones established under statute
• Eligible expenses: 50% economic development/50% redevelopment for the
portion not earmarked for the bioscience zones
• Urban -rural split: none specified
House proposal:
• Program name: Redevelopment Account
• Jurisdiction: Statewide
• Total funding: $15M for redevelopment, no set aside for bioscience zones or
economic development
• Eligible expenses: bioscience zone activities are eligible for funding
Urban -rural split: 50% for the Metropolitan Area and 50% for Greater Minnesota
unless insufficient grants are received by a certain date, then additional funds
could be made available in the other part of the state.
Senate proposal:
• Program name: Redevelopment Account
• Jurisdiction: statewide
Total funding: $10M for redevelopment, no set aside for bioscience zones or for
economic development
• Eligible expenses: redevelopment projects per current law
• Urban -rural split: at least 50% of the funds must be spent in Greater Minnesota
I did receive a thank -you email from DEED, which I will send to you under separate cover. I think
it's important that you understand the critical role that we (Minnesota Solutions) play in educating
legislators and establishing programs for redevelopment. The email also makes clear the
symbiotic relationship that we have developed and maintained with DEED over the years.
It's hard to suggest an agenda for the 2005 legislative session. A special session could make a
dramatic difference in what we need to accomplish next year. However, following are some
suggestions (not a comprehensive list):
Tax Increment Financing: We will continue to push on this issue. This year, we
may invite Joel Michael and Rep. Abrams to a meeting to discuss the need to do
more to facilitate redevelopment. Although Rep. Abrams may not continue to be
chair of the House Tax Committee, he will almost certainly always be influential
on the issue as long as he is a member of the House. So it won't be wasted
time. We would also, of course, invite Senator Pogemiller, although he has
always been an advocate for us.
Redevelopment Account. Hopefully, there will be a special session and we'll get
some bonding. Then, next year's agenda may include a proposal for a general
fund appropriation. A blend of bonding and cash is most efficient.
Contamination Cleanup Grant Account. We'll need to look at whether any
changes are warranted in this regard.
Eminent domain: If the issue isn't settled during a special session and I believe it
will not be, then it will haunt us next year. We will work with AMM and the
League to organize in preparation for next session.
Historic Preservation: It might be a good session to float historic tax credits again.
Minnesota Solutions
70 Grove Street
Mahtomedi, Minnesota 55115
(651) 6534926 (phone)
(651) 260 -8690 (cell)
My e-mail address: bbalach @comcast.net
June 7, 2004
TO: Grant Femelius
City of Fridley
FR: Bonnie Balach
RE: Minnesota Solutions' contribution
Invoice
Contribution to Minnesota Solutions in preparation for the year
2005 legislative session ........ ............................... ......................$1,200.00
Remit to:
Due and Payable Upon Receipt
Bonnie Balach
Minnesota Solutions
70 Grove Street
Mahtomedi, Minnesota 55115
Fridley Housing and
Redevelopment Authority
MEMORANDUM
DATE: June 24, 2004 item #a
��
TO: William W. Burns, HRA'Executive Director (Action)
FROM: Grant Fernelius, Assistant HRA Director
SUBJECT: Public Hearing Regarding Sale of Ashton Avenue Lot
Under state law (M.S. 469.029, Subd. 2), the HRA is required to hold a public hearing
before it can sell, lease or otherwise convey real property to another party. As you
recall, at the last HRA meeting on June Td, the HRA awarded the bid for the Ashton
Avenue lot to Gilmore Construction of St. Francis, subject to a number of conditions.
Those conditions included: 1) completion of a public hearing, 2) approval of the
construction plans, and 3) authorization to enter into a Contract for Private
Redevelopment with the builder.
Notice of the public hearing was advertised in the Focus Newspaper and residents
within 350' of the site were notified of the hearing. At the public hearing on Thursday
night, staff will review the house plans and other project details. In addition, the builder
will be available to answer any questions. Once the hearing is closed, the HRA can
proceed and consider Item #5 on the agenda.
Recommendation
Staff recommends that the HRA conduct a public hearing concerning the sale of the
Ashton Avenue lot which is legally described as the South 107 feet of Lots 21, 22, 23
and 24, Block 14, Spring Brook Park, Anoka County, Minnesota.
FA�
{
Fridley Housing and
Redevelopment Authority
MEMORANDUM
DATE: June 24, 2004 item #5
�� (Action)
TO: William W. Burns, HRA Executive Director
FROM: Grant Fernelius, Assistant HRA Director
SUBJECT: Resolution to Approve Sale of Ashton Avenue Lot and
Authorization to Execute Contract for Private Redevelopment with
Gilmore Construction, Inc.
Introduction
Attached is a draft of the proposed Contract for Private Redevelopment by and between
the Authority and Gilmore Construction, Inc. This agreement is the standard contract
document that the HRA has used in the past to sell land through the Housing
Replacement Program. The agreement includes all of the terms and conditions of the
sale, as well as the rights and responsibilities of each party.
Under the agreement, the HRA will send the land to Gilmore Construction, Inc. for
$60,000 in cash (less the $500 in earnest already paid). At closing, the HRA will
execute a redevelopment deed to the builder in order to transfer title. This type of
specialized deed contains a number of references to the redevelopment contract that
will ensure the home is built according to the plans approved by the HRA. Unlike so
transactions in the past, the HRA will not finance the sale of the land to the builder. The
builder will be responsible for securing both construction financing and finding a buyer
for the new home.
Basic Terms
As described earlier, the builder will be required to pay cash at closing. A closing date
has not been set, although both parties would like to schedule it for some time in July.
After closing, the builder will be responsible for obtaining the necessary building
permits. Staff is proposing that the builder break ground by August 15, 2004 and
Ashton Lot Memo
June 24, 2004
Page 2
Basic Terms (cont.)
substantially complete the project by December 15, 2004. It is possible that final
grading and landscaping may not be finished until the spring of 2005. Once the project
is completed, a Certificate of Completion will be issued to the builder to close out the
file. Lastly, Exhibit E will include a list of building materials (the draft agreement does
not include finalized list). This list will be completed and available for HRA review on
Thursday night.
Recommendation
Staff recommends that the HRA approve the attached resolution authorizing the
execution and delivery of a Contract for Private Redevelopment by and between the
Housing and Redevelopment Authority in and for the City of Fridley, Minnesota and
Gilmore Construction, Inc.
RESOLUTION HRA 2004 — 2
A RESOLUTION AUTHORIZING EXECUTION AND
DELIVERY OF A CONTRACT FOR PRIVATE
REDEVELOPMENT BY AND BETWEEN THE HOUSING
AND REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF FRIDLEY, MINNESOTA AND GILMORE
CONSTRUCTION, INC.
BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and
Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority ") as follows:
Section 1. Recitals.
1.01. It has been proposed that the Authority enter into a Contract For Private Redevelopment (the
"Contract ") with Gilmore Construction, Inc. (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 seq.
2.02. The Authority hereby finds that it has approved and adopted a Housing Replacement District
Plan (the "Plan") and created Housing Replacement District No. 1, pursuant to and in accordance
with Laws of Minnesota 1995, Chapter 264, Article 5, Sections 44 through 47, inclusive, as
amended and supplemented from time to time.
2.03. The Authority hereby finds that it has performed all actions required by the applicable Minnesota
Statutes and has approved the sale of property that is subject to the terms of the Contract.
2.04. The Authority hereby finds that the Contract promotes the objectives as outlined in its
Redevelopment Program and the Plan.
Section 3. Authorization for Execution and Delivery of the Contract.
3.01. The Chairman and the Executive Director of the Authority (the "Officers ") are hereby
authorized to execute and deliver the Contract with such additions and modifications as
the Officers may deem desirable or necessary as evidenced by their execution.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF FRIDLEY, MINNESOTA, THIS DAY OF -2004.
LAWRENCE R. COMMERS - CHAIRMAN
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
CONTRACT
FOR
PRIVATE REDEVELOPMENT
By and Between
HOUSING AND REDEVELOPMENT AUTHORITY
In and For
THE CITY OF FRIDLEY, MINNESOTA
And
GILMORE CONSTRUCTION, INC.
FOR PROPERTY LOCATED AT
ASHTON AVENUE
This document was drafted by:
DRAFT: 6/14/2004
CONTRACT FOR PRIVATE REDEVELOPMENT
THIS AGREEMENT, made as of the — day of , 2004 by and between the
Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority"),
a public body corporate and politic organized under the laws of the State of Minnesota and Gilmore
Construction, Inc., a corporation organized and existing under the laws of the State of Minnesota
(the "Redeveloper ").
WITNESSETH:
WHEREAS, the Board of Commissioners (the `Board") of the Authority has determined
that there is a need for development and redevelopment within the corporate limits of the City of
Fridley, Minnesota (the "City") to provide employment opportunities, to provide adequate housing
in the City, including low and moderate income housing and housing for the elderly, to improve the
tax base and to improve the general economy of the City and the State of Minnesota;
WHEREAS, in furtherance of these objectives, the Authority has established, pursuant to
Minnesota Statutes, Sections 469.001 et seq. (the "Act' ), the redevelopment plan known as the
Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Project Area") which
plan, as amended, and as it may be amended, is hereinafter referred to as the "Redevelopment Plan"
in the City to encourage and provide maximum opportunity for private development and
redevelopment of certain property in the City which is not now in its highest and best use;
WHEREAS, in order to achieve the objectives of the Redevelopment Plan and particularly
to make specified land in the Project Area and in the Authority's area of operation available for
development by private enterprise for and in accordance with the Redevelopment Plan, the
Authority has determined to provide substantial aid and assistance to finance public development
costs in the Project Area and in the Authority's area of operation; and
WHEREAS, the Authority believes that the development and redevelopment of the Project
Area pursuant to this Agreement, and fulfillment generally of the terms of this Agreement, are in
the vital and best interests of the Authority and the health, safety, morals and welfare of its
residents, and in accord with the public purposes and provisions of applicable federal, state and
local laws under which the development and redevelopment are being undertaken and assisted;
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
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ARTICLE I
Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears
from the context:
"Act' ' means Minnesota Stamt .s, Sections 469.001, et seq.
"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.
"Certificate of Completion" means the certification, in a form substantially similar to the
certificate contained in Schedule C attached to and made a part of this Agreement, provided to the
Redeveloper, pursuant to Section 4.3 of this Agreement.
"City" means the City of Fridley, Minnesota, or its successors or assigns.
"Construction Plans" means the plans, specifications, drawings and related documents for
the construction of the Minimum Improvements that are required by the City for the issuance of its
building permit. The Authority shall approve said Constructions Plans before the City issues any
building permits.
"County" means the County of Anoka, Minnesota.
"Date of Closing" means the date or dates set forth in Section 3.1(b).
"Event of Default" means an action by the Redeveloper described in Section 7.1 of this
Agreement.
"Homeowner" means the person(s) who purchase the Project from the Redeveloper.
"Minimum Improvements" means the improvements to be constructed by the Redeveloper
on the Redevelopment Property as specified in the Construction Plans.
"Party" means a party to this Agreement.
"Permitted Encumbrances" means those encumbrances as defined in Section 8.7 of this
Agreement.
"Project" means the Redevelopment Property and the Minimum Improvements.
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"Purchase Price" means the sum of Sixty - Thousand and No /100 Dollars ($60,000), payable
on the Date of Closing.
"Redeveloper" means Gilmore Construction, Inc., a Minnesota corporation, and its
permitted successors or assigns.
"Redevelopment Plan" means the Modified Redevelopment Plan adopted by the Authority
in connection with its Redevelopment Project No. 1.
"Redevelopment Property" means the real property upon which the Minimum
Improvements are to be constructed, which real property is described on Schedule A attached to and
made a part of this Agreement.
"Redevelopment Property Deed" means a quit claim deed, substantially in the form of the
deed in Schedule B attached to and made a part of this Agreement, used to convey the
Redevelopment Property from the Authority to the Redeveloper.
"Sales Price" means an amount equal to or greater than $230,000 and which is to be used on
the certificate of real estate value when the Project is conveyed to the Homeowner.
"State" means the State of Minnesota.
"Unavoidable Delays" means delays which are the direct result of strikes or shortages of
material; delays which are the direct result of casualties to the Minimum Improvements, the
Redevelopment Property or the equipment used to construct the Minimum Improvements; delays
which are the direct result of governmental actions (except that the City may not create an
Unavoidable Delay by virtue of its own action); delays which are the direct result of judicial action
commenced by third parties; or delays which are the direct result of citizen opposition or action
affecting this Agreement or adverse weather conditions or acts of God.
ARTICLE H
Section 2.1. Reurk-sentations by the A thorny. The Authority represents and warrants
that:
(a) The Authority is a public body duly organized and existing under the laws of the
State. Under the provisions of the Act, the Authority has the power to enter into this Agreement
and carry out its obligations hereunder.
(b) The Authority will, in a timely manner, subject to all notification requirements,
review and act upon all submittals and applications of the Redeveloper and will cooperate with the
efforts of Redeveloper to secure the granting of any permit, license, or other approval required to
allow the construction of the Minimum Improvements; provided, however, that nothing contained
in this Section 2.1(b) shall be construed to limit in any way the reasonable and legitimate exercise
of the Authority's discretion considering any submittal or application.
(c) The Authority makes no representation, guarantee, or warranty, either express or
implied, and hereby assumes no responsibility or liability as to the Redevelopment Property or its
condition (regarding soils, pollutants, hazardous wastes or otherwise).
Section 2.2. Representations and Warranties by the Redevelop, The Redeveloper
represents and warrants that:
(a) The Redeveloper will purchase the Redevelopment Property from the Authority
pursuant to Article III hereof and in the event the Redevelopment Property is conveyed to the
Redeveloper, then the Redeveloper will construct the Minimum Improvements in accordance with
the terms of this Agreement, the Redevelopment Program and all local, state and federal laws and
regulations (including, but not limited to, environmental, zoning, building code and public health
laws and regulations).
(b) The Redeveloper is a corporation organized under the laws of the State of
Minnesota, is authorized to transact business in the State, and has duly authorized the execution of
this Agreement and the performance of its obligations hereunder.
(c) The financing arrangements which the Redeveloper has obtained or will obtain to
finance construction of the Minimum Improvements will be sufficient to enable the Redeveloper to
successfully complete the Minimum Improvements as contemplated in this Agreement.
(d) The Redeveloper shall prepare the Construction Plans and construct the Minimum
Improvements in accordance with all of the appropriate building and zoning codes, as well as, the
House Plans and List of Materials that are attached as Exhibits D and E, respectively.
(e) The Redeveloper shall have the Construction Plans prepared by an architectural
designer or a licensed architect.
Price. (f) The Redeveloper shall sell the Project to the Homeowner for no less than the Sales
ARTICLE III
Section 3.1. C_onveyance of the Redevelopment ProperU,
(a) Title. The Authority shall, subject to the Permitted Encumbrances, convey
marketable title to and possession of the Redevelopment Property to the Redeveloper under a quit
claim deed in the form of the Redevelopment Property Deed contained in Schedule B of this
Agreement. The conveyance of title to the Redevelopment Property pursuant to the Redevelopment
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Property Deed and the Redeveloper's use of the Redevelopment Property shall be subject to all of
the conditions, covenants, restrictions and limitations imposed by this Agreement and the
Redevelopment Property Deed. At its expense, the Redeveloper shall obtain and pay for any title
policy and endorsements it deems necessary.
The Authority agrees to obtain and shall deliver to the Redeveloper a commitment for an
owner's title insurance policy, in the ALTA form requested by the Redeveloper, issued by a title
insurance company acceptable to the Authority and Redeveloper, naming the Redeveloper as the
proposed owner - insured of the Redevelopment Property in the amount of the Purchase Price (the
"Commitment'). The Commitment shall have a current date as its effective date and shall, subject
to the Permitted Encumbrances, commit to insure marketable title in the Redeveloper, free and clear
of all mechanic's lien claims, questions of survey, unrecorded interests, rights of parties in
possession or other exceptions customarily excluded from such insurance. The Commitment shall
set forth all levied real estate and special assessments relating to the Redevelopment Property. Said
commitment shall have attached copies of all instruments of record, which create any easements or
restrictions, which are referred to in its Schedule B. The Redeveloper will be allowed 20 days after
receipt of the Commitment to make an examination thereof and to make any objections to the
marketability of the title to Redevelopment Property, other than the Permitted Encumbrances, said
objections to be made by written notice or to be deemed waived.
If the title to the Redevelopment Property, as evidenced by the Commitment, together with
any appropriate and available endorsements, is not good and marketable of record (subject only to
the Permitted Encumbrances) in the Authority and is not made so by the Date of Closing,
Redeveloper may either:
(i) Terminate this Agreement by giving written notice to the Authority in which
event this Agreement shall become null and void and neither Party shall have any further rights or
obligations hereunder; or
(ii) Elect to accept the title in its marketable condition by giving written notice
to the Authority, in which event the Redeveloper may hold back adequate funds from the portion of
the Purchase Price payable at the closing to cure the defects and apply said holdback funds of the
cost of curing such defects, including attorneys' fees, and pay the unexpended balance to the
Authority. (If the amount of said holdback cannot be mutually agreed to by the Authority and the
Redeveloper, the issuer of the Commitment shall determine the amount of said holdback.)
(b) Time of Conve-yanm. The Authority shall execute and deliver to the Redeveloper
the Redevelopment Property Deed for the Redevelopment Property on or before August 1, 2004 or
on such date as the Authority and the Redeveloper shall mutually agree in writing (the "Date of
Closing "). The Redeveloper shall take possession of the Redevelopment Property on the Date of
Closing.
(c) Price and Payment. The Authority agrees to sell and the Redeveloper agrees to
purchase the Redevelopment Property for the Purchase Price. Unless otherwise mutually agreed
by the Authority and the Redeveloper, the execution and delivery of all closing documents and
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the payment of the Purchase Price shall be made either at the principal offices of the Authority or
offices of a licensed title company agreed upon by the parties.
(d) Taxes and Slierial Acs ssmj tq Real estate taxes due and payable prior to the
year of closing shall be paid by the Authority. Real estate taxes due and payable in the year of
closing shall be prorated as of the Date of Closing based upon each Party's respective period of
ownership in the year of closing. Real estate taxes due and payable in the years subsequent to the
closing shall be paid by the Redeveloper. On or prior to the Date of Closing, the Authority shall
pay all pending or levied special assessments.
(d) Sunsey. The Authority will not provide a survey.
(e) Inspection. At the Redeveloper's expense, the Redeveloper, its agents and
designees, are hereby granted the right at any time or times after the date hereof to inspect,
analyze, and test the Redevelopment Property. The Redeveloper shall hold the Authority and
the City harmless from any liability resulting solely from the entering upon the Redevelopment
Property or the performing of any of the tests or inspections referred to in this Section by the
Redeveloper, its agents or designees.
Section 3.2. Conditions Precedent to C'nnveyanc . The obligations of the Authority to
convey the Redevelopment Property to the Redeveloper shall be subject to the following conditions
precedent:
(a) On the Date of Closing, the Redeveloper shall be in material compliance with all of
the terms and provisions of this Agreement;
(b) The Redeveloper shall have provided evidence satisfactory to the Authority that the
Redeveloper is capable of financing or has obtained financing or a commitment for financing
sufficient to finance the construction of the Minimum Improvements. The Redeveloper will be
deemed to have provided adequate evidence of such financial commitment and ability if the
Redeveloper provides evidence satisfactory to the Authority of a mortgage commitment;
(c) The Authority and the City shall have approved the Construction Plans;
(d) The Redeveloper shall have received the appropriate permits for the construction of
the Minimum Improvements;
(e) The Redeveloper shall have paid the Purchase Price through the execution of the Note
and the Authority Mortgage; and
ARTICLE IV
Section 4.1. Construction of Minimum Improvements. The Redeveloper agrees that it
will construct the Minimum. Improvements on the Redevelopment Property m accordance with this
Agreement, the Housing Design and Site Development Criteria and the Construction Plans
approved by the City and the Authority and will maintain, preserve and keep the Minimum
Improvements or cause the Minimum. Improvements to be in good repair and condition until sale of
the Project to the Homeowner. Subject to Unavoidable Delays, the Redeveloper shall commence
construction of the Minimum Improvements on or before August 15, 2004.
Section 4.2. Completion of COnctru_ntinn.
(a) Subject to Unavoidable Delays, the Redeveloper shall have substantially completed
the construction of the Minimum Improvements by December 15, 2004. All work with respect to
the Minimum Improvements to be constructed or provided by the Redeveloper on the
Redevelopment Property shall be in conformity with the Construction Plans as submitted by the
Redeveloper and approved by the City and Authority.
(b) The Redeveloper agrees for itself, its successors and assigns, and every successor in
interest to the Redevelopment Property, or any part thereof, and the Redevelopment Property Deed
shall reference the covenants contained in this Section 4.2 and in Section 7.3 of this Agreement,
that the Redeveloper, and its successors and assigns, shall promptly begin and diligently prosecute
to completion the redevelopment of the Redevelopment Property through the construction of the
Minimum Improvements thereon, and that such construction shall in any event be completed within
the period specified in this Section 4.2.
Section 4.3. Certificate of Completion.
(a) Promptly after completion of the Minimum Improvements in accordance with the
provisions of this Agreement relating to the obligations of the Redeveloper to construct such
improvements (including the date for completion thereof), the Authority will furnish the
Redeveloper with a Certificate of Completion. The Certificate of Completion shall be a conclusive
determination and conclusive evidence of the satisfaction and termination of the agreements and
covenants in this Agreement and in the Redevelopment Property Deed with respect to the
obligations of the Redeveloper, and its successors and assigns, to construct the Minimum
Improvements and the date for the completion thereof.
(b) If the Authority shall refuse or fail to provide the Certificate of Completion in
accordance with the provisions of this Section 4.3 the Authority shall, within twenty (20) days after
written request by the Redeveloper, provide the Redeveloper with a written statement, indicating m
adequate detail in what respects the Redeveloper has failed to complete the Minimum
Improvements in accordance with the provisions of this Agreement, or is otherwise in default, and
what measures or acts will be necessary, in the opinion of the Authority, for the Redeveloper to take
or perform in order to obtain a Certificate of Completion.
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(c) The construction of the Minimum Improvements shall be deemed to be completed
when the City has issued its Certificate of Occupancy; provided that the Authority shall retain the
right to withhold the Certificate of Completion in the event that the City's Certificate of Occupancy
issues with conditions, and to continue to withhold the Certificate of Completion until such
conditions are fully satisfied.
ARTICLE V
Section 5.1. Real PrnnelU Tnxec, Prior to the Authority issuing its Certificate of
Completion, the Redeveloper shall pay when due, prior to the attachment of penalty, all real
property taxes payable with respect to the Redevelopment Property in the years subsequent to the
delivery of the Redevelopment Property Deed.
Section 5.2. Insurance.
(a) The Redeveloper will provide and maintain at all times during the process of
constructing the Minimum Improvements and, from time to time at the request of the Authority,
furnish the Authority with proof of payment of premiums on:
(i) builder's risk insurance, written on the so -called `Builder's Risk -- Completed
Value Basis," in an amount equal to one hundred percent (100 %) of the
insurable value of the Minimum Improvements at the date of completion, and
with coverage available in nonreporting form on the so -called "all risk" form of
policy. The interest of the Authority shall be protected in accordance with a
clause in form and content reasonably satisfactory to the Authority;
(j) (ii) comprehensive general liability insurance together with an Owner's
Contractor's Policy with limits against bodily injury and property damage of not
less than $2,000,000 for each occurrence (to accomplish the above required
limits, an umbrella excess liability policy may be used); and
(iii) workers' compensation insurance, with statutory coverage
(b) All insurance required in this Article V shall be taken out and maintained in
responsible insurance companies selected by the Redeveloper, which are authorized under the
laws of the State to assume the risks covered thereby. The Redeveloper will deposit annually
with the Authority policies evidencing all such insurance, or a certificate or certificates or binders
of the respective insurers stating that such insurance is in force and effect. Unless otherwise
provided in this Article V, each policy shall contain a provision that the insurer shall not cancel
nor modify it without giving written notice to the Redeveloper and the Authority at least thirty
(30) days before the cancellation or modification becomes effective.
ARTICLE VI
Section 6.1. Representation as to Redevelopment The Redeveloper represents and
agrees that its purchase of the Redevelopment Property, and its other undertakings pursuant to this
Agreement, are, and will be used, for the purpose of redevelopment of the Redevelopment Property
and not for speculation in land holding. The Redeveloper further recognizes that, in view of (a) the
importance of the redevelopment of the Redevelopment Property to the general welfare of the
Authority; (b) the substantial financing and other public aids that have been made available by the
Authority for the purpose of making such redevelopment possible; and (c) the fact that any act or
transaction involving or resulting in a significant change in the identity of the parties in control of
the Redeveloper or the degree of their control is for practical purposes a transfer or disposition of
the property then owned by the Redeveloper, the qualifications and identity of the Redeveloper are
of particular concern to the Authority. The Redeveloper further recognizes that it is because of such
qualifications and identity that the Authority is entering into this Agreement with the Redeveloper,
and, in so doing, is further willing to accept and rely on the obligations of the Redeveloper for the
faithful performance of all undertakings and covenants hereby by it to be performed.
Section 6.2. Prohibition Against Transfer of Properrte and Assignment of
Agreement Also, for the foregoing reasons the Redeveloper represents and agrees that prior to the
earlier of the issuance of the Certificate of Completion or the Termination Date the Redeveloper
shall comply with the following: Except for the purpose of obtaining financing necessary to enable
the Redeveloper or any successor in interest to the Redevelopment Property, or any part thereof, to
perform its obligations with respect to constructing the Minimum Improvements under this
Agreement, and any other purpose authorized by this Agreement, the Redeveloper has not made or
created and will not make or create or suffer to be made or created any total or partial sale,
assignment, conveyance, lease, or any trust or power, or transfer in any other mode or form of or
with respect to this Agreement or the Redevelopment Property or any part thereof or any interest
therein, or any contract or agreement to do any of the same, without the prior written approval of
the Authority. Notwithstanding the foregoing, the Redeveloper may transfer the Redevelopment
Property to the Homeowner.
Section 6.3. Release and Indemnification Covenants.
(a) The Redeveloper covenants and agrees that the City and the Authority and the
governing body members, officers, agents, servants and employees thereof shall not be liable for
and agrees to indemnify and hold harmless the City and the Authority and the governing body
members, officers, agents, servants and employees thereof against any loss or damage to property or
any injury to or death of any person occurring at or about or resulting from any defect in the
Minimum Improvements, except for any loss resulting from negligent, willful or wanton
misconduct of any such parties, and provided that the claim therefor is based upon the acts of the
Redeveloper or of others acting on the behalf or under the direction or control of the Redeveloper.
(b) Except for any negligent or willful misrepresentation or any negligent, willful or
wanton misconduct of the following named parties, the Redeveloper agrees to protect and defend
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the City, the Authority and the governing body members, officers, agents, servants and employees
thereof, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand,
suit, action or other proceeding whatsoever by any person or entity whatsoever arising or
construction,
Purportedly arising from this Agreement or the transactions or
hereby or the acquisition,
installation, ownership, and operation of the Minimum Improvements, except for the
use of eminent domain if exercised by the Authority to acquire the Redevelopment Property, and
provided that the claim therefor is based upon the acts of the Red Redevelopment
or of others acting on the
behalf or under the direction or control of the Redeveloper. e
(c) The City and the Authority and the governing body members, officers, agents,
servants and employees thereof shall not be liable for any damage or injury to the persons or
properly of the Redeveloper or its officers, agents, servants or employees or any other person who
may be about the Redevelopment Property or Minimum Improvements due to any act of negligence
of any person, other than the negligence and misconduct of the City or Authority employees or
those employed or engaged by the City or Authority.
(d) All covenants, stipulations, promises, agreements and obligations of the Authority
contained herein shall be deemed to be the covenants, stipulations, promises, agreements and
obligations of the Authority and not of any governing body member, officer, agent, servant or
employee of the Authority in the individual capacity thereof.
(e) Nothing in this Section or this Agreement is intended to waive any municipal
liability limitations contained. in Minnesota Sh tulm, particularly Chapter 466.
ARTICLE VII
Section 7.1. _Eventc_of Defy alt nefmd. Subject to Unavoidable Delays, the following
shall be "Events of Default' under this Agreement and the term "Event of Default" shall mean,
whenever it is used in this Agreement (unless the context otherwise provides), any one or more of
the following events:
(a) Failure by the Redeveloper to pay when due all real property taxes assessed against
the Redevelopment Property.
(b) Failure by the Redeveloper to commence or complete construction of the Minimum
Improvements pursuant to the terms, conditions and limitations of Article IV of this Agreement.
(c) Failure by the Redeveloper to substantially observe or perform any covenant,
condition, obligation or agreement on its part to be observed or performed hereunder.
(d) The Redeveloper shall:
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(i) file any petition in bankruptcy or for any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under
the United States Bankruptcy Code or under any similar federal or state law;
or
(ii) make an assignment for the benefit of its creditors; or
admit in writing its inability to pay its debts generally as they become due; or
(iv) be adjudicated as bankrupt or insolvent; or if a petition or answer proposing
the adjudication of the Redeveloper as a bankrupt or its reorganization under
any present or future federal bankruptcy act or any similar federal or State
law shall be filed in any court and such petition or answer shall not be
discharged or denied within. ninety (90) days after the filing thereof, or a
receiver, trustee or liquidator of the Redeveloper or of the Redevelopment
or art thereof, shall be appointed in any proceeding brought
�' °P�3'� p 90 days
against the. Redeveloper and shall not be discharged within ninety ( ) Ys
after such appointment, or if the Redeveloper shall consent to or acquiesce
in such appointment.
Section 7.2. Rem dies on Default. Whenever any Event of Default referred to in
Section 7.1 of this Agreement occurs, the Authority may take any one or more of the following
actions after providing thirty days' written notice to the Redeveloper of the Event of Default, but
only if the Event of Default has not been cured within said thirty days, or if the Event of Default is
by its nature incurable within said thirty day period, and the Redeveloper fails to provide the
Authority with written assurances, deemed satisfactory in the reasonable discretion of the Authority,
that the Event of Default will be cured as soon as reasonably possible:
the
(a) Suspend its performance under this receives
cure itscdefaultland
Redeveloper, deemed adequate by the Authority, that the Redeveloper
continue its performance under this Agreement.
(b) Terminate this Agreement.
(c) Withhold the Certificate of Completion.
(d) Take whatever action, including legal, equitable or administrative action, which may
appear necessary or desirable to the Authority, and observance of any obligation, agreement, or
under this Agreement, or to enforce performance
covenant of the Redeveloper under this Agreement.
Section 7.3. Re-yesting Re-vesting Title in the Authority Upon Happening of Event Suhseiin he
to Conveyance o the Redeveloveex. In the event that subsequent to conveyance of the
Redevelopment Property to the Redeveloper and prior to the receipt by the Redeveloper of the
Certificate of Completion:
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(a) subject to Unavoidable Delays, the Redeveloper fails to carry out its obligations
with respect to the construction of the Minimum Improvements (including the nature and the date
for the commencement and completion thereof), or abandons or substantially suspends construction
work, and any such failure, abandonment, or suspension shall not be cured, ended, remedied or
assurances reasonably satisfactory to the Authority made within thirty (30) days after written
demand from the Authority to the Redeveloper to do so; or
(b) the Redeveloper fails to pay real estate taxes or assessments on the Redevelopment
Property or any part thereof when due, or creates, suffers, assumes, or agrees to any encumbrance or
lien on the Redevelopment Property which is unauthorized by this Agreement or shall suffer any
levy or attachment to be made, or any materialmen's or mechanic's lien, or any other unauthorized
encumbrance or lien to attach, and such taxes or assessments shall not have been paid, or the
encumbrance or lien removed or discharged or provision reasonably satisfactory to the Authority
made for such payment, removal, or discharge, within thirty (30) days after written demand by the
Authority to do so; provided, that if the Redeveloper shall first notify the Authority of its intention
to do so, it may in good faith contest any mechanic's or other lien filed or established and in such
event the Authority shall permit such mechanic's or other lien to remain undischarged and
unsatisfied during the period of such contest and any appeal, but only if the Redeveloper provides
the Authority with a bank letter of credit or other security in the amount of the lien, in a form
satisfactory to the Authority pursuant to which the bank or other obligor will pay to the Authority
the amount of any lien in the event that the lien is finally determined to be valid. During the course
of such contest the Redeveloper shall keep the Authority informed respecting the status of such
defense; or
(c) there is, in violation of this Agreement, any transfer of the Redevelopment Property
or any part thereof, or any change in the ownership or distribution thereof of the Redeveloper, or
with respect to the identity of the parties in control of the Redeveloper or the degree thereof, and
such violation shall not be cured within thirty (30) days after written demand by the Authority to the
Redeveloper;
(d) Then the Authority shall have the right to re -enter and take possession of the
Redevelopment Property and to terminate (and revest in the Authority) the estate conveyed by the
Redevelopment Property Deed to the Redeveloper, it being the intent of this provision, together
with other provisions of the Agreement, that the conveyance of the Redevelopment Property to the
Redeveloper shall be made upon, and that the Redevelopment Property Deed shall contain a
condition subsequent to the effect that in the event of any default on the part of the Redeveloper and
failure on the part of the Redeveloper to remedy, end, or abrogate such default within the period and
in the manner stated in such subdivisions, the Authority at its option may declare a termination in
favor of the Authority of the title, and of all the rights and interests in and to the Redevelopment
Property conveyed to the Redeveloper, and that such title and all rights and interests of the
Redeveloper, and any assigns or successors in interest to and in the Redevelopment Property, shall
revert to the Authority, but only if the events stated in Section 7.3(a) -(c) have not been cured within
the time periods provided above.
12
Notwithstanding anything to the contrary contained in this Section 7.3, the Authority shall have no
right to re -enter or retake title to and possession of any part of the Redevelopment Property for
which a Certificate of Completion has been issued.
Section 7.4. Resale of Reacquired Property; Disposition of Proceeds. Upon the
revesting in the Authority of title to any parcel of the Redevelopment Property or any part thereof as
provided in Section 7.3, the Authority shall have no further responsibility to the Redeveloper
hereunder with respect to that or any subsequent parcel and may sell or otherwise devote said
parcels to such other uses as the Authority shall in its sole discretion determine, without
reimbursement of any sums paid by the Redeveloper to the Authority under this Agreement.
Section 7.5. No Remedy Exclusive. No remedy herein conferred upon or reserved to the
Authority or Redeveloper is intended to be exclusive of any other available remedy or remedies, but
each and every such remedy shall be cumulative and shall be in addition to every other remedy
given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay
or omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be exercised
from time to time and as often as may be deemed expedient. In order to entitle the Authority or the
Redeveloper to exercise any remedy reserved to it, it shall not be necessary to give notice, other
than such notice as may be required in this Article VII.
Section 7.6. No Additional Waiver T mnlied by One Waiver, In the event any
agreement contained in this Agreement should be breached by either party and thereafter waived by
the other party, such waiver shall be limited to the particular breach so waived and shall not be
deemed to waive any other concurrent, previous or subsequent breach hereunder.
Section 7.7. Agreement to Pay Attorney's Fees and Expenses. Whenever any Event
of Default occurs and the Authority or the City shall employ attorneys or incur other expenses for
the collection of payments due or to become due or for the enforcement or performance or
observance of any obligation or agreement on the part of the Redeveloper under this Agreement, the
Redeveloper agrees that it shall, within ten (10) days of written demand by the Authority, pay to the
Authority the reasonable fees of such attorneys and such other expenses so incurred by the
Authority or the City.
ARTICLE VIII
Mortgage Financing
Section 8.1. Limitation Upon Encumbrances of PropertP. Prior to the substantial
completion of the Minimum Improvements, as certified by the Authority, neither the Redeveloper
nor any successor in interest to the Redevelopment Property or any part thereof
shall engage in any financing or any other transaction creating any mortgage or other encumbrance
or lien upon the Redevelopment Property, other than the Permitted Encumbrances, whether by
express agreement or operation of law, or suffer any encumbrance or lien to be made on or attach to
the Redevelopment Property, other than Permitted Encumbrances, except:
13
(a) For the purposes of obtaining fluids only to the extent necessary for financing of the
Minimum Improvements including, but not limited to, labor and materials, equipment, professional
fees, real estate taxes, construction interest, organizational and other indirect costs of development,
costs of constructing the Minimum Improvements, an allowance for contingencies, acquisition cost
of the Redevelopment Property, costs of originating the Mortgage and customary financing costs.
(b) Only upon the prior written approval of the Authority in accordance with
Sections 8.1 and 8.2.
The Authority shall not approve any Mortgage, which does not contain terms that conform to the
terms of Section 8.5, except as provided in Section 8.6 of this Agreement.
Section 8.2 Approval of Mortgage. The Authority shall approve a Mortgage if.
(a) The Authority first receives a copy of all Mortgage documents.
(b) The Mortgage loans, together with other funds available to the Redeveloper, will, in
the reasonable judgment of the Authority, be sufficient to acquire the Redevelopment Property and
construct the Minimum Improvements.
(c) The Authority is not entitled under Section 7.2 to exercise any of the remedies set
forth therein as a result of an Event of Default.
(d) The Authority determines that the terms of the Mortgage conform to the terms of
Section 8.5.
However, the approval of a Mortgage by the Authority shall not be unreasonably withheld. Any
Mortgage, which is subordinated to the rights of the Authority under this Agreement, may be
granted in all or any part of the Redevelopment Property without the approval of the Authority.
Section 8.3 Notice of Default; Copy to Mo iggagpp. Whenever the Authority shall
deliver any notice or demand to the Redeveloper with respect to any breach or default by the
Redeveloper in its obligations or covenants under this Agreement, the Authority shall at the same
time forward a copy of such notice or demand to each holder of any Mortgage authorized by this
Agreement at the last address of such holder shown in the records of the Authority.
Section 8.4 Mortgag 'ee c option to Cure n fa ltc, After any breach or default
referred to in Section 8.3, each such holder of a Mortgage shall (insofar as the rights of the
Authority are concerned) have the right, at its option, to cure or remedy such breach or default (or
such breach or default to the extent that it relates to the part of the Redevelopment Property covered
by its Mortgage) and to add the cost thereof to the Mortgage debt and the lien of its Mortgage;
provided, however, that if the breach or default is with respect to construction of the Minimum
Improvements, nothing contained in this Section or any other Section of this Agreement shall be
deemed to require such holder, either before or after foreclosure or action in lieu thereof, to
undertake or continue the construction or completion of the Minimum Improvements, provided that
14
any such holder of a Mortgage shall not devote the Redevelopment Property to a use inconsistent
with the Redevelopment Plan or this Agreement without the written consent of the Authority.
Section 8.5 Authority's option to Cure Default on Mortgage, Any Mortgage, unless
such requirement is waived by the Authority, executed by the Redeveloper with respect to the
Redevelopment Property or any improvements thereon shall provide that, in the event that the
Redeveloper is in default under any Mortgage authorized pursuant to this Article VIII, the holder of
the Mortgage shall notify the Authority in writing of:
(a) The fact of the default.
(b) The elements of the default.
(c) The actions required to cure the default.
If the default is an "Event of Default" under such Mortgage, which shall entitle such holder to
foreclose upon the Redevelopment Property, the Minimum Improvements or any portion thereof,
and any applicable grace periods have expired, the Authority shall have, and each Mortgage
executed by the Redeveloper with respect to the Redevelopment Property or any improvements
thereon shall provide that the Authority shall have such an opportunity to cure the "Event of
Default" within such reasonable time period as such holder shall deem appropriate.
Section 8.6 Subordination and Modification for the Benefit of Mortgagees.
In order to facilitate the obtaining of financing for the construction of the Minimum
Improvements, the Authority agrees that it shall agree to any reasonable modification of this Article
VIII or waiver of its rights hereunder to accommodate the interests of a holder of a Mortgage,
provided, however, that the Authority determines, in its reasonable judgment, that any such
modification(s) will adequately protect the legitimate interest and security of the Authority with
respect to the Redevelopment Property.
Section 8.7 Permitted F.neumbrancec. The following shall be permitted encumbrances
on the title to the Redevelopment Property:
(a) Such encumbrances as are mutually agreed to in writing by the Authority and the
Redeveloper.
(b) Governmental regulations, if any, affecting the use and occupancy of the
Redevelopment Property and Minimum Improvements.
(c) Zoning laws of the City, County and State.
(d) All rights in public highways upon the land.
15
(e) Reservations to the State, in trust for the tax districts concerned, of minerals and
mineral rights in those portions of the Redevelopment Property the title to which may have at any
time heretofore been forfeited to the State for nonpayment of real estate taxes.
(f) The lien of unpaid special assessments, if any, not presently payable but to be paid
as a part of the annual taxes to become due.
(g) The lien of unpaid real estate taxes, if any, not presently payable but to be paid as a
part of the annual taxes to become due.
(h) A Mortgage as permitted under Section 8.2.
ARTICLE IX
Section 9.1. Conflict of Tnter st; Authority Representntivec Not Individually T iahl.
No member, official, or employee of the Authority shall have any personal interest, direct or
indirect, in this Agreement, nor shall any such member, official, or employee participate in any
decision relating to this Agreement which, affects his or her personal interests or the interests of any
corporation, partnership, or association in which he or she is, directly or indirectly, interested. No
member, official, or employee of the Authority shall be personally liable to the Redeveloper, or any
successor in interest, in the event of any default or breach by the Authority or for any amount which
may become due to the Redeveloper or successor or on any obligations under the terms of this
Agreement, except in the case of willful misconduct.
Section 9.2. Rgua_ l Employment npportunit.y. The Redeveloper, for itself and its
successors and assigns, agrees that during the construction of the Minimum ,Improvements provided
for in this Agreement that it will comply with all applicable equal employment opportunity and
non - discrimination laws, ordinances and regulations.
Section 9.3. Provisions Not Merged With Deed. None of the provisions of this
Agreement are intended to or shall be merged by reason of any deed transferring any interest in the
Redevelopment Property and any such deed shall not be deemed to affect or impair the provisions
and covenants of this Agreement.
Section 9.4. Titles of Articles and Sections. Any titles of the several parts, articles, and
sections of this Agreement are inserted for convenience of reference only and shall be disregarded
in construing or interpreting any of its provisions.
Section 9.5. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand, or other communication under this Agreement by either party to the
other shall be sufficiently given or delivered if it is (1) dispatched by registered or certified mail,
postage prepaid, return receipt requested, (2) transmitted by facsimile, (3) delivered by a recognized
overnight courier or (4) delivered personally; and
16
(a) in the case of the Redeveloper, is addressed to or delivered personally to the
Redeveloper at 1750 242nd Avenue NW, St. Francis, Minnesota 55070, Attention: Chris Gilmore;
(b) in the case of the Authority, is addressed to or delivered personally to the Housing
and Redevelopment Authority in and for the City of Fridley at 6431 University Avenue Northeast,
Fridley, Minnesota, 55432, Attention: City Manager;
(c) or at such other address with respect to either party as that party may, from time to
time, designate in writing and forward to the other as provided in this Section.
Section 9.6. Countapartc. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 9.7 Termination. This Agreement shall terminate upon the Authority issuing
its Certificate of Completion or in accordance with the provisions of Article VIII and the discharge
of all of the Authority's and Redeveloper's other respective obligations hereunder, but no such
termination shall terminate any indemnification or other rights or remedies arising hereunder due to
any Event of Default which occurred and was continuing prior to such termination.
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 on or as of the date first above written.
17
Dated:
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF FRIDLEY, MINNESOTA
And by
STATE OF MINNESOTA )
) ss.
COUNTY OF ANOKA )
Its Chairperson
Its Executive Director
On this day of . 20 before me, a Notary Public, personally
appeared Lawrence R Commers and William W. Burns to me personally known and who by me
duly sworn did say that they are the Chairperson and Executive Director, respectively, of the
Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a public body
corporate and politic organized under the laws of the State of Minnesota, and acknowledged the
foregoing instrument on behalf of said Authority.
Notary Public
My Commission Expires:
Authority Signature Page -- Redevelopment Contract
m
Dated:
GILMORE CONSTRUCTION, INC.
By
Its
STATE OF MINNESOTA )
ss.
COUNTY OF )
On this day of , 20 before me, a Notary Public, personally
appeared to me personally known and who by me duly sworn did say that
s/he is the of Gilmore Construction, a Minnesota corporation, and
acknowledged the foregoing instrument on behalf of said corporation.
Notary Public
My Commission Expires:
Redeveloper Signature Page -- Contract for Private Redevelopment
19
SCHEDULE A
DESCRIPTION OF REDEVELOPMENT PROPERTY
c
SCHEDULE B
REDEVELOPMENT PROPERTY DEED
STATE DEED TAX DUE HEREUNDER $
THIS INDENTURE, made this day of , 20_, between the
Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a public body
corporate and politic under the laws of the State of Minnesota (the "Grantor "), and Gilmore
Construction, a corporation organized under the laws of the State of Minnesota (the "Grantee ").
WITNESSETH, that Grantor, in consideration of the sum of One Dollar ($1.00) and other
good and valuable consideration the receipt whereof is hereby acknowledged, does hereby convey
and quit claim to the Grantee, its successors and assigns forever, all the tract or parcel of land lying
and being in the County of Anoka and State of Minnesota described as follows:
together with all hereditaments and appurtenances belonging thereto, subject to all conditions,
covenants, restrictions and limitations imposed by: (a) the Contract for Private Redevelopment By
and Between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota
and Gilmore Construction dated , 20_ (the "Contract ") and (b) all matters of
record.
Grantor covenants and represents that:
Grantee has committed to construct certain improvements pursuant to the Contract and
Grantor has a right of re -entry in accordance with Sections 4.2 and 7.3 respectively of the
Contract. Title is conveyed hereby subject to the following conditions subsequent: In the
event that Grantee defaults on its obligations in the Contract and fails to properly cure said
default, Grantor may declare a termination of all right, title and interest conveyed herein and
all right, title and interest in the premises described above in this deed reverts to Grantor.
Upon performance of Grantee's obligations in the Contract, including completion of the
improvements, the release of the right of re -entry and reverter shall be evidenced by the
recording of the Certificate of Completion and Release of Forfeiture attached as Exhibit 1 to
this deed.
The Grantor certifies that the Grantor does not know of any wells on described real property.
21
IN WITNESS WHEREOF, the Grantor has caused this deed to be duly executed in its
behalf by its Chairperson and its Executive Director the day and year written above.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF FRIDLEY, MINNESOTA
A
Its Chairperson
And by
STATE OF MINNESOTA )
ss.
COUNTY OF ANOKA )
Its Executive Director
On this day of , 20 before me, a Notary Public, personally
appeared and to me
personally known and who by me duly sworn did say that they are the Chairperson and Executive
Director of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a
body corporate and politic under the laws of the State of Minnesota, and acknowledged the,
foregoing instrument on behalf of said Authority.
Notary Public
My Commission Expires:
This instrument was drafted by: Property Tax Statements should be sent to:
SCHEDULE C
CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE
WHEREAS, the Housing and Redevelopment Authority in and for the City of Fridley,
Minnesota, a body corporate and politic under the laws of the State of Minnesota (the "Grantor"),
by a Deed recorded in the Office of the County Recorder and/or the Registrar of Titles in and for
the County of Anoka and State of Minnesota, as Deed Document Number(s) and
, respectively, has conveyed to Gilmore Construction, a Minnesota corporation
organized under the laws of the State of Minnesota (the "Grantee "), the following described land in
County of Anoka and State of Minnesota, to -wit:
WHEREAS, said Deed contained certain covenants and restrictions, the breach of which by
Grantee, its successors and assigns, would result in a forfeiture and right of re -entry by Grantor, its
successors and assigns, said covenants and restrictions being set forth in said Deed; and
WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able
in a manner deemed sufficient by the Grantor to permit the execution and recording of this
certification;
NOW, THEREFORE, this is to certify that all building construction and other physical
improvements specified to be done and made by the Grantee have been completed and the above
covenants and conditions in said Deed have been performed by the Grantee therein and that the
provisions for forfeiture of title and right to re -entry for breach of condition subsequent by the
Grantor therein is hereby released absolutely and forever insofar is it applies to the land described
herein, and the County Recorder and/or the Registrar of Titles in and for the County of Anoka,
State of Minnesota is hereby authorized to accept for recording and to record this instrument, and
the filing of this instrument shall be a conclusive determination of the satisfactory termination of
the covenants and conditions of the contract referred to in said Deed, the breach of which would
result in a forfeiture and right of re -entry.
Dated: -20—.
23
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF FRIDLEY, MINNESOTA
And by
STATE OF MINNESOTA )
ss.
COUNTY OF ANOKA )
Its Chairperson
Its Executive Director
On this day of , 20 before me, a Notary Public, personally
appeared and to me
personally known who by me duly sworn, did say that they are the Chairperson and Executive
Director of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a
body corporate and politic under the laws of the State of Minnesota, and acknowledged the
foregoing instrument on behalf of said Authority.
Notary Public
My Commission Expires:
24
SCHEDULED
HOUSE PLANS
FULL -SIZE PLANS ARE ATTACHED
25
SCHEDULE E
LIST OF BUILDING MATERIALS
Exterior Materials
Siding
Windows
Entry Door
Service Doors
Garage Door
Roofing
Interior Materials
Cate gQrX Manufactu .r
Carpet
Vinyl Floors
Kitchen Appliances _
Kitchen Sink
Kitchen Faucet
Kitchen Cabinets
Kitchen Countertops _
Bathroom Fixtures
Lighting Allowance $ Supplier
Mechanical
Furnace
Air Conditioning
Water Heater
Other
Landscaping Allowance $ Supplier
G:\ WPDATA\F\FRIDLEY\43\DOC \GILMORE REDEV AGREE V1.DOC
DATE: July 1, 2004
Fridley Housing and
Redevelopment Authority
MEMORANDUM
TO: HRA Commissioners
FROM: Scott Hickok, Community Development Director
Grant Femelius, Assistant HRA Director
SUBJECT: Resolution Approving Phase 4 of the Housing Replacement
Program
Attached for the Authority's consideration is a resolution approving Phase 4 of the
Housing Replacement Program. As you might recall, the Authority adopted its Housing
Replacement Program in 1995 via special legislation. Under the program, the city can
designate up to 50 properties for inclusion (no more than 10 per year), through 2004.
After this year no additional sites can be added.
The Housing Replacement Program functions as a scattered site tax increment -
financing district. The Authority can collect the tax increment generated by the new
homes for 15 years. Increment from the project is plowed back into the Housing
Replacement Fund to cover the cost of the program. Unlike a traditional tax increment
district, the housing replacement district is less cumbersome to administer and the
original tax capacity only includes the land (and not the building).
Since the program began in 1995, the Authority has approved three phases (8 sites in
1995; 5 sites in 1997; and 7 sites in 2001). Phase 4 includes the lot that will be sold to
Gilmore Construction. For timing purposes, it is important that the Phase 4 be approved
before construction starts on the Ashton Street lot. The City Council must also act o the
matter, which will be schedule for their July 12t' meeting.
Recommendation
Staff recommends that the Authority approve the attached resolution amending the
Housing Replacement District plan to include phase 4.
RESOLUTION HRA 2004 - 3
A RESOLUTION AMENDING THE HOUSING
REPLACEMENT DISTRICT PLAN FOR HOUSING
REPLACEMENT DISTRICT NO.1 TO INCLUDE PHASE IV
BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and
Redevelopment Authority In and For the City of Fridley (the "Authority ") as follows:
Section 1. Recitals.
1.01. It has been proposed that the Authority amend the Housing Replacement District Plan (the
"Plan ") for Housing Replacement District No. 1 (the "District ") to include Phase IV, pursuant to and
in accordance with Laws of Minnesota 1995, Chapter 264, Article 5, Sections 44 through 47,
inclusive, as amended and supplemented from time to time.
1.02. The Authority has performed all actions required bylaw to be performed prior to the approval
and adoption of an amended Plan.
1.03. The Authority hereby determines that it is necessary and in the best interests of the City and
the Authority at this time to amend the Plan for the District to include Phase IV in order to further
achieve the Authority's and City's goal of acquiring blighted, undeveloped or underdeveloped parcels
for redevelopment or rehabilitation, and for resale as market rate housing.
Section 2. Findings.
2.01. The Authority hereby finds that the adoption and implementation of the amended Plan is
necessary to assure the development and redevelopment of market rate housing within the City.
2.02. The Authority hereby finds that the amended Plan conforms to the comprehensive plan of the
City for the development and redevelopment of the City as a whole.
2.03. The Authority hereby finds that the amended Plan affords maximum opportunity consistent
with the sound needs of the City as a whole for development and redevelopment within the District
by private enterprise.
Page 2 - Resolution No.
2.04. The Authority hereby finds that the approval and adoption of the amended Plan is intended
and, in the judgment of this Authority, its effect will be to promote the public purposes and
objectives specified in the Plan.
Section 3. Approval and Adoption of The Amended Plan.
3.01. The amended Housing Replacement District Plan for Housing Replacement District No. 1 to
include Phase IV is hereby approved and adopted by the Commissioners of the Authority.
Section 4. Filing of Plan.
4.01. Upon approval and adoption of the amended Plan, the Authority shall cause said amended Plan
to be filed with the Minnesota Department of Revenue.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY THIS DAY OF 92004.
LAWRENCE R. COMMERS - CHAIR
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
ARTICLE V
PHASE IV
Section 5.1. Specific Development Activity. As of July 1, 2004, the Authority intends to
enter into the following proposed development activity for this Phase: to acquire and develop the
property located on the south 107 feet of Lots 21, 22, 23 and 24, Block 14, Spring Brook Park,
Anoka County, Minnesota.
Section 5.2. Estimated Project Costs. The estimated Project Costs for this Phase are listed
on Exhibit I -A.
Section 5.3. Estimated Market Value. The estimated market value for the housing unit in
this Phase cannot exceed 150% of the average market value of single family housing in the City. As
of January 2, 2004, the average market value of single family housing in the City is $185,000 and
150% of that number is $277,500. Upon completion of this Phase, the market value of the housing
unit included within the Phase is estimated to be $225,000.
Section 5.4. Original Tax Capacity. The original tax capacity for this Phase, as most recently
certified by the Commissioner of Revenue on January 2, 2004, is estimated to be $83.
Section 5.5. Estimated Captured Tax Capacity. Upon completion of the proposed
development activity, the estimated captured tax capacity of this Phase, on January 2, 2005, is
estimated to be $2,250.
Section 5.6. Original Tax Capacity Rate. The pay 2004 tax capacity rate is 94.823 (City
30.248; County 35.221; ISD #11 21.050, and miscellaneous 8.304). See Exhibit V -B for
itemization.
Section 5.7. Estimated Tax Increment. Tax increment for this Phase has been calculated at
approximately $2,055 assuming a static tax capacity rate and a valuation increase of five percent
(5.0 %) compounded annually.
Section 5.8. Duration Limits. Tax increment from this Phase is payable to the Authority for
fifteen (15) years from the date of receipt of the first tax increment. Assuming the first tax increment
is received in 2006, it is estimated this Phase will terminate in 2020.
Section 5.9. Identification of Parcels. The parcel to be included in this Phase is legally
described as 03- 30 -24 -42 -0172 and is illustrated on the attached Exhibit V A.
G: \WPDATA \F \FRIDLEY \13 \DOC \PHASE IV.DOC
5 -1
ESTIMATED PROJECT COSTS
TOTAL PROJECT COSTS AS OF OCTOBER 23.1995
Site Acquisition
$2,000,000
Relocation
$ 250,000
Demolition
$ 200,000
Site Preparation
$ 250,000
Pollution Abatement
$ 125,000
Public Improvements
$ 125,000
Administrative Expense
125,000
Total District Project Costs
$3,075,000
PHASE I PROJECT COSTS AS OF OCTOBER 23, 1995
Site Acquisition $ 50,300
Demolition $ 17,200
Site Preparation $ 2,000
Pollution Abatement $ 2,000
Administrative Expense 10,000
Total Phase I Project Costs $ 181,500
PHASE II PROJECT COSTS AS OF NOVEMBER 24, 1997
Site Acquisition $295,0.00
Demolition $ 56,000
Site Preparation $ 2,500
Administrative Expenses 6,500
Total Phase II Project Costs $360,000
PHASE III PROJECT COSTS AS OF MAY 3, 2001
Site Acquisition $446,100
Relocation $ 20,000
Demolition $ 43,000
Pollution Abatement $ 13,500
Administrative Expenses 52,260
Total Phase III Project Costs $574,860
I -A -1
EXHIBIT I -A (Continued)
ESTIMATED PROJECT COSTS
PHASE IV PROJECT COSTS AS OF JULY 1, 2004
Site Acquisition $100,000
Pollution Abatement $ 5,000
Administrative Expenses $ 4,500
Total Phase IV Project Costs $109,500
G: \WPDATA \F \FRIDLEY \13 \DOC \EXHIBIT I -A.DOC
I -A -2
EXHIBIT V - B
ESTIMATED IMPACT OF HOUSING REPLACEMENT DISTRICT NO. 1
PHASE IV
IMPACT ON TAX BASE
IMPACT ON TAX RATE
TAX
ORIGINAL
ESTIMATED
CAPTURED
DISTRICT
RATE
TAX
TAX
TAX
TAX
AS %
ENTITY
BASE
CAPACITY
CAPACITY
CAPACITY
OF TOTAL
City of Fridley
27,336,726
83
2,250
2,167
0.008%
County of Anoka
236,617,283
83
2,250
2,167
0.001%
ISD #11
122,875,575
83
2,250
2,167
0.002%
IMPACT ON TAX RATE
* Assumes construction would have occurred without the creation of a Tax Increment Financing
District. If construction is a result of Tax Increment Financing, the impact is $0.
TAX
% OF
TAX
TAX RATE
ENTITY
RATE
TOTAL
INCREMENT
INCREASE
City of Fridley
0.30248
31.90%
655
0.002%
County of Anoka
0.35221
37.14%
763
0.000%
ISD #11
0.21050
22.20%
456
0.000%
Other
0.08304
8.76%
180
0.94823
100.00%
2,055
* Assumes construction would have occurred without the creation of a Tax Increment Financing
District. If construction is a result of Tax Increment Financing, the impact is $0.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
- M114NUHL
(a) (b) (c)
Original Estimated
Tax Tax
Date Capacity Capacity
(see assumptions)
5.00% Inflation
CITY OF FRIDLEY
HOUSING REPLACEMENT PROGRAM - PHASE IV
CASH FLOW AND PRESENT VALUE ANALYSIS
°°°>
<
83
SEM
(d)
(e)
(fl
(g)
Captured
Estimated
Less:
Available
Tax
Tax
Admin
Tax
Capacity
Increment
Fees
Increment
(c) - (b)
(d) x
(e) x
(e) - (fl
(prev. year)
0.94823
0.00%
0
06/01/04
83
83
(h)
Cumulative
0
<- Present Value ---->
Avail. Tax
Semi Annual
Cumulative
Increment
0
Balance
Balance
Total of (g)
0
P.V. of (g)
Total of (1)
83
2,250
6.50%
12/01/04
06/01/04
83
83
0
0
0
12/01/04
83
83
0
0
0
0
0
0
0
06/01/05
83
2,250
0
0
0
0
0
0
0
12/01/05
83
2,250
0
0
0
0
0
0
0
06/01/06
83
2,363
2,167
1,027
0
1,027
1,027
933
933
12/01/06
83
2,363
2,167
1,027
0
1,027
2,055
904
1,837
06/01/07
83
2,481
2,280
1,081
0
1,081
3,136
921
2,758
12/01107
83
2,481
2,280
1,081
0
1,081
4,216
892
3,651
06101/08
83
2,605
2,398
1,137
0
1,137
5,353
909
4,559
12/01/08
83
2,605
2,398
1,137
0
1,137
6,490
880
5,439
06/01/09
83
2,735
2,522
1,196
0
1,196
7,685
897
6,336
12/01/09
83
2,735
2,522
1,196
0
1,196
8,881
868
7,204
06/01/10
83
2,872
2,652
1,257
0
1,257
10,138
884
8,089
12/01/10
83
2,872
2,652
1,257
0
1,257
11,396
857
8,945
06/01/11
83
3,015
2,789
1,322
0
1,322
12,718
872
9,818
12/01/11
83
3,015
2,789
1,322
0
1,322
14,040
845
10,662
06/01/12
83
3,166
2,932
1,390
0
1,390
15,430
860
11,523
12/01112
83
3,166
2,932
1,390
0
1,390
16,820
833
12,356
06/01/13
83
3,324
3,083
1,462
0
1,462
18,282
849
13,205
12/01113
83
3,324
3,083
1,462
0
1,462
19,744
822
14,027
06/01/14
83
3,490
3,241
1,537
0
1,537
21,280
837
14,864
12/01/14
83
3,490
3,241
1,537
0
1,537
22,817
811
15,674
06/01/15
83
3,665
3,407
1,616
0
1,616
24,433
825
16,500
12/01/15
83
3,665
3,407
1,616
0
1,616
26,048
799
17,299
06/01/16
83
3,848
39582
1,698
0
1,698
27,746
814
18,113
12/01/16
83
3,848
3,582
1,698
0
1,698
29,445
788
18,901
06101/17
83
4,041
3,765
1,785
0
1,785
31,230
802
19,704
12/01/17
83
4,041
3,765
1,785
0
1,785
33,015
777
20,481
06/01/18
83
4,243
3,958
1,876
0
1,876
34,891
791
21,272
12/01/18
83
4,243
3,958
1,876
0
1,876
36,768
766
22,038
06/01/19
83
4,455
4,160
1,972
0
1,972
38,740
780
22,818
12/01/19
83
4,455
4,160
1,972
0
1,972
40,712
756
23,574
06/01/20
83
4,678
4,372
2,073
0
2,073
42,785
769
24,343
12/01/20
83
4,678
4,372
2,073
0
2,073
44,858
745
25,088
44,858
0
44.858
44.858 I
9- nsta
�a nsla
cash flow.xls
NPV @ end of period 25,088 0 25,088
Prepared by Krass Monroe, P.A.
7/1/2004
Fridley Housing and
Redevelopment Authority
MEMORANDUM
DATE: June 24, 2004 Item #6
(Information)
TO: William W. Burns, HRA Executive Director
FROM: Grant Fernelius, Assistant HRA Director
SUBJECT: Joint Meeting with City Council
As you are aware, in response to concerns raised by the City Council about the
direction of the Gateway West project, staff has suggested that the two groups convene
a joint discussion on Monday, June 28th beginning at 6:00 p.m. in the Council
Conference Room. The City Council does have a regular meeting at 7:30, so the
discussion will be limited to 90 minutes.
Although we have not prepared a formal agenda for the joint discussion, staff will be
prepared with a project update. If there are any specific issues we should anticipate,
please advise. If not, we will be prepared to answer any questions that arise. Since
most people will not have had an opportunity to eat beforehand, a light dinner will be
provided.
Fridley Housing and
Redevelopment Authority
MEMORANDUM
DATE: June 24, 2004 Item #s
TO: William W. Bums, HRA Executive Director (Information)
FROM: Grant Femelius, Assistant HRA Director
SUBJECT: Update on Target Office Building
This is to update the HRA on recent discussions staff has had with a prospective buyer
for the former Target Northern Operations Center. Staff has had one meeting and
several phone conversations with a real estate broker that is representing a mid -size,
financial- services company. The buyer is still negotiating with Target and has asked
that their identity remain private. What we do know is that the company would
relocate about a 100 employees, mostly administrative staff, to the Fridley facility. In
addition, the company is contemplating options to expand retail operations at the site.
Among their concerns, is the parking lot arrangement between the HRA and Target.
Informally, they have asked about the possibility of purchasing the parking lot now
rather than waiting until the end of the lease. As you recall, the HRA leases the parking
lot (and adjoining grounds) to Target through 2014. At the end of the lease, Target is
obligated to buy the land for $300,000. In the meantime, Target is required to make
annual lease payments of $15,000, payable in monthly installments. To satisfy the
obligation, Target purchased a U.S. treasury bond, which generates semi - annual
payments.
In evaluating the contract with Krass Monroe (memo attached), there is no provision for
an early buyout of the entire property. There is a provision for Target (or a successor)
to purchase two small parcels on the west and north side the property. If this option
were exercised, the rent payments and final purchase price would be adjusted. In
order for an early buyout to occur (of the whole site), the contract would need to be re-
drafted.
Target Memo
June 24, 2004
Page 2
In evaluating an early buyout there are several issues to consider:
Financial Impacts
Currently the HRA receives $15,000 per year in annual lease payments (payable on a
monthly basis). Once the land is sold the lease and lease payments would terminate.
Assuming the land was sold at the end of 2004, the HRA would forgo any future rent
payments (112 months x $1,250 = $140,000). Clearly, it would not be in the HRA's
financial interest to sell the land prematurely, unless the sales price was adjusted to
reflect the lost rental income. This issue needs to be addressed with the buyer.
Rights to Building Parking Ramp
Under the terms of the redevelopment agreement, both parties (Target and HRA) have
the option to build a parking ramp on a portion of the existing lot. The area, which is
shown on the attached map, is in the southeast quadrant of the property. In the event
that the City builds a ramp, Target would have the right to use the same number of
stalls available before construction. In addition, Target would have the option (and
expense) of adding three stories to the City's ramp. If Target were to build the ramp,
the City would have the option (and expense) of adding two stories.
At the present time, parking is very tight at the Municipal Center. On some days, City
staff members are forced to park on the Target property along the south property line.
This problem is due in large part to the shared parking arrangement between the City
and Fridley Plaza Office Building. While there have been no formal discussions about
building additional parking either at the Municipal Center or on the Target property, it
may be an option worth preserving.
Recommendation
The HRA does not to take any action at this time, however any feedback on the issue is
certainly welcome. A formal request from the buyer is anticipated in the next month.
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KRASS MONROE, P.A.
ATTORNEYS AT LAW
Gay Greiter, Esq.
Email.-gayg@krassmonroe.com
Direct (952) 885 -4393
MEMORANDUM
To: City of Fridley
Attn: Grant Fernelius, HRA Assistant Executive Director
From: Gay Greiter, Esq.
James R. Casserly, Esq.
Date: May 26, 2004
Re: Target Northern Operations Center
Our File No. 9571 -63
James R Casserly, Esq.
Emailjwnesc@krassmonroe.com
Direct (952) 885 -1296
The purpose of this memorandum is to address a number of questions raised by a prospective
purchaser of the Target operations center. The questions relate to Parcel B, which is leased by the
Authority to Target, the rent payments under the lease and the provisions regarding acquisition of
Parcel B set forth in the Contract for Private Development and Lease- Purchase Agreement dated June
5,1984.
The relevant provisions of the contract provide as follows:
1. (Sec. 3.2) The HRA sold Parcel A to Target for construction of the operations center for a
purchase price of $60,000 ($2.00 /s.f.).
2. (Sec. 3.3) The HRA agreed to lease Parcel B (consisting of subparcels B -1, B -2, B -3, B-4
and B -5) to Target through April 1, 2014 (the "Lease Term') for a lease payment of $15,000
per year, payable monthly in advance. To satisfy this obligation, Target purchased a Treasury
bond which provides semi - annual payments to the HRA pursuant to an Assignment and
Release Agreement dated June 5, 1984.
3. (Secs. 3.4 and 3.7) At the end of the Lease Term (April 1, 2014), Target is recluued to buy all
of Parcel B from the HRA for a purchase price of $300,000. Target may not purchase
subparcel B-4; the HRA would retain ownership of B4 and would grant a perpetual easement
8000 NORMAN CENTER DRIVE, SURE 1000 • MINNEAPOLIS, MINNESOTA 55437 -1178
TELEPHONE 9521885 -5999 • FACSIMILE 9521885 -5969
www.Vamonroe.com
to Target for surface parking. With respect to subparcel B-4, either the BRA or the City
retains the right to construct a garage or other improvements below grade.
4. (Sec. 3.4) At any time during the Lease Term (that is, prior to April 1, 2014), Target has the
o_Ution (but not an obligation) to acquire either or both of subparcels B-1 and B -2. If Target
acquires both subparcels, it need not acquire both at the same time. If Target exercises its
purchase option as to either or both B-1 and B -2, then:
(a) The purchase price is $2.00 /s.£
(b) The rent for the remainder of Parcel B is reduced by a factor equal to the purchase
price divided by $300,000.
(c) On April 1, 2014 (when Target is required to buy the rest of Parcel B), the $300,000
purchase price is reduced by the amounts already paid for subparcels B -1 and/or B -2.
5. (Sec. 4.5) During the Lease Term (until April 1, 2014), either of Target or the HRA (or the
City) can build a parldng ramp on subparcel B-3, subject to submission of construction plans
to the other for approval, which approval cannot be unreasonably withheld. As noted above,
the ERA has title to subparcel B -3 during this period. As more fully set out in Sec. 4.5, if one
party elects to construct a ramp, the other party may elect to add on up to a specified number
of stories at its own expense, either at the time the ramp is constructed or later.
Here are answers to the specific questions you raised:
Q1: The contract includes an early lease buyout of a portion of Parcel B. Is an early lease buyout
of all of Parcel B available?
A: The buyer would have no contractual right to an early buyout of all of Parcel B. The buyer
would acquire Target's leasehold interest in Parcel B, which includes an option to acquire only
subparcels B -1 and B -2 early. If the buyer acquires B -1 and/or B -2 early, the $15,000 /year
rental is reduced proportionately per the. formula described above and the ultimate purchase
price for all of Parcel B is also reduced.
Of course, the BRA could amend the contract to permit the buyer to acquire all of Parcel B
early, if it wishes (presumably except for subparcel B-4, as to which a surface easement would
be granted). Rental payments to the BRA would then terminate.
Q2: What rights, if any, does the BRA have to build a parking ramp on subparcel B -3?
A: Until April 1, 2014, the BRA or the City has the right to build a ramp on subparcel B -3, as
long as Target is given the right to use a number of parking spaces equal to the number of
parking spaces previously enjoyed by Target but eliminated as a result of the ramp
construction. Target may elect to add up to three stories to an BRA/City ramp. If Target
builds a ramp, the ERA/City may add up to two stories. The HRA/City would retain
• Page 2
ownership of its portion of any ramp following the purchase of Parcel B by Target or its
successor in interest.
Q3: What happens to the Treasury bond payments if the property is sold before 2014?
A: The buyer takes subject to the leasehold interest, so the HRA would continue to be entitled to
receive the rent payments. The Assignment and Release Agreement requires the HRA to
reassign the bond to Target in certain events, but a sale of the property is not one of them.
Thus, the bond would remain in the HRA's possession and the HRA would continue to
receive the interest payments even if the operations center were sold.
The Assignment and Release Agreement provides that if Target purchases B -1 and/or B -2, the
HRA would continue to receive the bond payments and would then reimburse Target for the
proportionate reduction in rent. If Target sells the property and subsequently the buyer
acquires B -1 and/or B -2, the HRA would continue to receive the bond payments and the buyer
would be entitled to receive the rent reduction payments.
G:\ WPDATA\F\FRIDLE"63\C0R\FERNEUUS GG 01.DOC
• Page 3
THE
A VIDSON
O.ES,
INC.
July 1, 2004
Mr. Grant Fernelius
Fridley Housing and Redevelopment Authority
6431 University Avenue Northeast
Fridley, MN 55432
Re: 6499 University Avenue, Fridley, MN
Dear Mr. Femellus:
The Davidson Companies, Inc. represents a financial services group engaged in
negotiations with Target Corporation for the acquisition of the 6499 University Avenue
Building.
An important component of our negotiation with Target includes the successful
resolution of the HRA `s right through 2014 to construct a parking ramp on the parking
lot that serves the 6499 Building.
Our contact thus far with you and your colleagues at The City of Fridley have
encouraged and interested us in relocating my client's Corporate Headquarters to The
City of Fridley.
I trust that this short note will serve as an introductory starting point to the Housing and
Redevelopment Authority while we finalize our discussions with Target Corporation.
Please call me with any questions you may have. I look forward to working with you, the
Fridley Housing and Redevelopment Authority, and The City of Fridley on this project.
Best regards,
Robin C. Davidson
Myd,121= ultra 99bMng*o[lgidley1u1y2004
3900 Northwood$ Drive, Suite 125, Arden Hills, MN 55112 Phone. 651 -481 -6290 Fax: (651) 451 -6289 Email: robdavidsonoworldnet.att.n
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DATE: July 1, 2004
Fridley Housing and
Redevelopment Authority
MEMORANDUM
TO: HRA Commissioners
FROM: Scott Hickok, Community Development Director
Grant Fernelius, Assistant HRA Director
SUBJECT: Target Northern Operations Center
Attached is a letter from Rob Davidson who represents the prospective buyer of the
former Target Northern Operations Center. Mr. Davidson's client is a financial services
company based in the Golden Valley that would like to buy the building and relocate
about 100 employees to the new location.
While they are very interested in the site, one of their primary concerns is a provision in
the lease agreement that allows either the City or Target (or a successor) to construct a
parking ramp on a portion of the current parking lot. This option expires with the lease
in 2014. According to Davidson, this provision is problematic for his client, since it could
affect the future site plan.
The City has no plans to build structured parking on the Target property, although
parking at the Municipal Center ramp is tight. One issue we are exploring is the
possibility of retaining a portion of Target lot for use as over -flow parking at the
Municipal Center. This discussion is in the very early stages.
In order for the buyer to move ahead with an offer, this issue needs to be resolved.
Davidson's client is not willing to purchase the building unless the parking ramp option
is extinguished.
While the Authority doesn't need to take action this evening, any feedback would be
helpful. Within the next 30 to 60 days Target and the buyer plan to formalize an
agreement and the Authority will need establish a position on the matter.
Fridley Housing and
Redevelopment Authority
MEMORANDUM
DATE: June 24, 2004 Item #s
TO: William W. Burns, HRA Executive Director (Information)
FROM: Grant Fernelius, Assistant HRA Director
SUBJECT: Follow -Up on Medtronic Discussion
At the last HRA meeting, several questions were raised about the financial impacts of
the Medtronic's lower market valuation. We have asked Krass Monroe to update the
HRA's cash flow and fund balance projections. We anticipate that the information will
be ready for the HRA's August meeting. The short delay will allow Krass Monroe to get
updated information from Anoka County concerning the'/ half tax receipts for 2004,
and whether the county has been recalculating increment in pre -1988 TIF districts. All
of this information will be useful in our discussions with the HRA.
One question that came up was why we didn't use an assessment agreement on the
Medtronic project. According to Jim Casserly an assessment agreement wasn't used
because the Authority didn't issue any debt or revenue note obligations. As you recall,
the financial assistance package was structured to reimburse Medtronic for their site
improvement costs, but only from available tax increment — the company does not
receive a guaranteed minimum payment.
We anticipate that Krass Monroe will complete their analysis in the next few weeks and
we will be prepared to discuss this issue further at the August meeting.
Fridley HRA
Housing Program Summary
Cover Page
July 1, 2004 HRA Meeting
Report Description
Loan Application Summary Loan application activity (e.g. mailed
out, in process, closed loans) for June
2004 and year -to -date.
Loan Origination Report
Loan Servicing Report
Remodeling Advisor &
Operation Insulation
Loan originations for June 2004 and
year -to -date.
Loan servicing by Community
Reinvestment Fund (CRF) for the month
of May 2004. Note, that the loan
servicing reports are usually available
10 days after month end.
Shows the number of field appointments
scheduled and completed the Operation
Insulation and Remodeling Advisor
Services administered by Center for
Energy and Environment.
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Fridley HRA
Loan Origination Summary
June 2004
Loan / Grant Originations
_
poop
Kitchen remodel
1
10%
General plumbing
This
Previous
Heating system
1
10%
Month
Months
YTD
Loans Issued
_
2
5
7
Grants Issued
Room addition
3
30%
Misc. interior projects
_
Total
2
5
7
Funding Sources
_
0%
Roofing
-
0%
Windows /Doors
This
Previous
Garage
_
0%
Month
Months
YTD
Fridley HRA
$
22,501
$ 54,561
$ 77,062
MHFA
$
-
$ 49,250
$ 49,250
Met Council
$
_
$ _
$ _
CDBG /HOME
$
_
$ _
$ _
CEE
$
_
$ _
$ _
Other
$
_
$
$ _
Total $
22,501
$ 103,811
$ 126,312
Types of Units Improved
This
Previous
Month
Months
YTD
Single Family
2
5
7
Duplex
_
Tri -Plex
_
4 to 9 Units
_
10 to 20 Units
_
20+ Units
_
Total
2
5
7
Types of Improvements
Interior # of Projects % of Total
Bathroom remodel
_
poop
Kitchen remodel
1
10%
General plumbing
_
0%
Heating system
1
10%
Electrical system
_
polo
Basement finish
_
polo
Insulation
_
polo
Room addition
3
30%
Misc. interior projects
_
0%
Exterior
Siding /Fascia /Soffit
_
0%
Roofing
-
0%
Windows /Doors
1
10%
Garage
_
0%
Driveway /sidewalk
1
10%
Landscaping
2
20%
Misc. exterior projects
1
10%
Fridley HRA
Loan Servicing Report
May 2004 *
Monthly Servicing Report
Pool
Pool
Pool
Deferred
Installment
Installment
Loans
Loans
Loans
Principal Paid
-
1,939.96
3,486.52
Interest Paid
-
820.23
1,992.99
Total Payments Rec'd
-
2,760.19
5,479.51
Ending Principal Balance
31,500.66
204,403.56
461,231.50
Loans in Portfolio
Monthly Servicing Fees
NET FUNDS RECEIVED
Delinquency Report
Time Frame
1 to 30 days Late
31 to 60 Days Late
Over 60 Days Late
Total
* May collection report received on 6 -10 -2004.
Delinquent
Loans
1.00 $
3.00 $
4.00 $
Delinquent
Payments
278.03 $
4,856.22 $
5,134.25 $
Pool 3
Deferred
Loans
13,355.92
Delinquent
Principal
6,112.52
21,448.21
27,560.73
Total
5,426.48
2,813.22
8,239.70
710,491.64
68
$ 415.00
$ 7,824.70
% of
Delinquent
Principal
0.00%
0.09%
3.00%
3.09%
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