HRA 09/03/2004 - 00027902CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY
SEPTEMBER 3, 2004
CALL TO ORDER:
Chairperson Commers called the September 3, 2004, Housing and Redevelopment
Authority meeting to order at 7:30 p.m.
ROLL CALL:
Members Pesent: Larry Commers
John Meyer
Virginia Schnabel
William Holm
Others Present: Scott, Hickok, Community Development Director
Paul Bolin, Assistant HRA Director
Paul Eisenmenger, Accountant
Rebecca Brazys, Recording Secretary
APPROVAL OF MINUTES: Auqust 5, 2004
Ms. Schnabel asked that the minutes be corrected to reflect that she was not present for
the August 5t" meeting and, therefore, did not make any of the motions reflected in the
minutes.
MOTION by Mr. Meyer, seconded by Mr. Holm, to approve the minutes of the August 5tn
meeting as amended.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
INTRODUCTION OF PAUL BOLIN — ASSISTANT EXECUTIVE DIRECTOR, FRIDLEY
HRA
Chairperson Commers introduced and welcomed the new Assistant Executive Director,
Paul Bolin. Mr. Bolin spoke briefly about his professional experience.
CONSENT AGENDA:
• Consider claims & expenses
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — SEPT 3, 2004 Page 2 of 5
MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the claims and consent
agenda as presented.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
ACTION:
• Adoption of the 2004 Tax Levy for Taxes Collected in 2005
Mr. Bolin explained the purpose of the levy is to support the housing rehabilitation
program. The levy is used specifically to make payments on the $1.5 million loan that
the City gave the HRA that funded the revolving loan fund. The current balance of that
loan is $541,244. The levy is the same as it has been for the past few years, .0144% of
the actual market value of the property in Fridley. This is the maximum allowed by state
statute. Properties in Fridley have increased in value which will allow the HRA to collect
$321,192. The impact on tax payers is the same. On the average $200,000 home, the
cost will be approximately $28.80 and for a million dollar commercial property, the cost
is $144. Staff recommends approval of the levy resolution as presented. This
resolution was prepared and reviewed by the HRA attorney. The levy must be certified
and presented to Anoka County by September 15. The Council will take action on this
item at their September 13 meeting.
Chairperson Commers asked whether the obligation of the HRA to the City could be
paid in advance. Is the intention at this time to continue paying the balance as we have
done in the past?
Mr. Hickok responded that is the course that we're on.
Mr. Meyer questioned the interest rate.
Paul Eisenmenger, Accountant, replied that the interest rate is 5%.
Chairperson Commers questioned what is obtained on invested funds.
Mr. Eisenmenger stated it is about 2%.
MOTION by Ms. Schnabel, seconded by Mr. Holm to approve the resolution for the
2004 tax levy collectable in 2005.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
INFORMATION ITEMS:
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — SEPT 3, 2004 Page 3 of 5
• Update on Fridley Housing Forum
Mr. Hickok stated the August 19th housing forum was very successful with a good
turnout. They anticipate even more people at the next forum. The meeting was a good
foundation meeting for the series of four forums. Staff covered basic issues such as the
terminology used in housing, the fundamentals of the comprehensive plan and they
reviewed the basic decision making process for housing in Fridley. The next forum is
scheduled for September 23. The facilitator, Mark Kogler, will be present and Attorney
John Baker will be talking about some of the legal aspects of the housing area. Guy
Peterson, from the Metropolitan Council, will also speak about local planning and
housing issues. The first session is being telecast for those who were not able to
attend.
Chairperson Commers asked if there will be a report or listing of the issues raised
during the forums.
Mr. Hickok stated each of these meetings will end with a Question & Answer session as
well as a written survey to be completed. There will be a final report presented in
January after the last forum has been completed.
Mr. Meyer questioned if there was an emphasis on the housing rehab program at this
forum. He also questioned what types of people attended the forum.
Mr. Hickok stated the first session was fundamental issues. Those types of issues will
be discussed in future sessions. As far as those who attended, there was one out of
town guest but the majority of those attending are private citizens, some of whom lived
near specific project areas. 54% were from all around the community with very broad
interests and a very good representation of Fridley as a cross-section.
• Verbal Update on Request by Columbia Park Medical Group to Share
Parking Lot Improvement Costs.
Mr. Hickok stated he met with the Columbia Park Medical Group to analyze the
documents and review any contractual language related to this issue. The original
agreement seems to have been little more than a handshake to allow them to use the
parking as an economic development incentive. There was no lease arrangement or
formal arrangement. There was an agreement in 1992 that Columbia Park was
refinancing the clinic and the city was involved in that they did the conduit financing to
allow them to refinance their bonds with industrial revenue bonds. At that time
Councilmember Billings questioned what the City would receive in exchange for
facilitating this conduit financing. Columbia Park assured the city that they would be
investing $20,442 per year in capital improvements, so they were required to present an
annual tabulation record-keeping the City could file to demonstrate they had been doing
capital improvements in that amount.
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — SEPT 3, 2004 Page 4 of 5
Mr. Hickok stated that Columbia Park has not submitted such reports. Staff thinks it's
important to know how they've done with their own capital investment investments and
whether or not they've matched what they said they would in 1992. He let Columbia
Park staff know that that analysis needs to happen, for that reason they're going to set
their improvement project off until spring. This will give the City more time to analyze
and determine whether or not this is an investment they want to make.
Ms. Schnabel asked if Columbia Park has ever submitted a report since 1992.
Mr. Hickok stated they did not.
• Verbal Update on Gateway West
Mr. Hickok reported that the Gateway West project is moving forward. The closing on
the Talley property took place yesterday. The Talley's have signed a lease agreement
to stay in the home until their new home is ready by the middle of November. The
Harvets were not pleased with the offer on their property. The project can proceed
around that site. The staff is focusing now on the four-plex on the north end of this site.
Discussions have begun to proceed with condemnation on that property.
• Monthly Housing Report
Mr. Bolin reviewed the housing report.
ADJOURNMENT:
MOTION by Ms. Schnabel, seconded by Mr. Holm, to adjourn.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:00
PM.
Respectfully submitted by,
Rebecca Brazys
Recording Secretary
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — SEPT 3, 2004 Page 5 of 5