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HRA 12/02/2004 - 29533� �S`�� CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY DECEMBER 2, 2004 CALL TO ORDER: Chairperson Commers called the December 2, 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 Pat Gabel Others Present: Scott, Hickok, Community Development Director William Burns, HRA Executive Director Paul Bolin, Assistant HRA Director Paul Eisenmenger, Accountant Rebecca Brazys, Recording Secretary APPROVAL OF MINUTES: November 4 2004 MOTION by Commissioner Schnabel, seconded by Commissioner Meyer, to approve the minutes as presented. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA: • Consider Claims & Expenses MOTION by Commissioner Gabel seconded by Commissioner Holm, to approve the Consent Agenda. UPON A VOICE VOTE, ALL VOTItdG AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION: • Approval of Preliminary Budget — 2005. HOUSING AND 12EDEVELOPMEN'I' AUTH�R�T�' MEETING — DECEMBER 2, 2004 Page 2 of 7 Mr. Bolin stated at the November 2"d meeting thec uRA r lowering thebeaenues for the the input at that meeting lead to some revisions, m 9 Lake Pointe district and lowering those expenseColumbia Pa k parking lote $150,000 from the general fund for the reconstruction of the Chairperson Commers referred to the memo froe � tion�Iin payme n for theupa�rking Lake Pomte revenue and the correspondmg facilities. He questioned what that reduction does to our obligation to Medtronic with regards to the parking. Mr. Eisenmenger stated we will continue making payments, but it will be reduced payments of tax increment that Medtronic will receive. it will still be 90%. Chairperson Commers stated the HRA's obligation is limited to 90% of what is actually generated, even if that does not cover the full expense of the construction of the facility. Mr. Eisenmenger stated that is correct. Commissioner Meyer asked about the $400,000 in the Lake Pointe district expenses. Chairperson Commers stated that is what we were just talking about. We vvere getting greater revenue from them and in turn we were obligated to spend 90% of that revenue to support the construction of the parking facility. As our revenue goes down, so will our obligation. Mr. Eisenmenger explained that at the November meeting he did not take into account in the preliminary budget the fact that because of the market valuation agreement with Medtronic that that wrould reduce their marketuce the amount e werecobligat d to pay tax increment generated which would also red to Medtronic. Commissioner Schnabel questioned the last sentence in the memo from staff which states "The Commission is not interested in pactuallg takelnl onathisSmattere at this time." She stated she doesn't recall that a vote was y Mr. Bolin stated the HRA has not taken any action on this matter. Where that statement came from was staff s interpretation of the budget meeting in November where it was decided to take the $150,000 out. Mr. Hickok stated it was more of a decision to not put the $150,000 in the budget until the HRA has determined they will do oh{hepH 1RAt cant'cons der theupro ect g The documentation needed to support this S ive the a earance that this was a concem was that including in the budget may g PP foregone conclusion. When the HRA decides to fund the project, the funds can be put in the appropriate line item. He stated the record should make it clear that there wasn't (,. HOUSING AND REDEVELOPMENT ALTTgpRITy MEE.�G — DECEMBER 2, 2p04 Page 3 of 7 a vote either way, but it was that it will not be a line item in the budget until it's decided one way or another. Commissioner Schnabel asked that at the February HRA meeting that staff provide a comparison of the 2004 line item budget and the 2004 actual line item expenses. MOTION by Mr. Holm, seconded by Ms. Gabel, to approve the 2005 budget dated December 2, 2004. Commissioner Holm questioned if this is the preliminary or final budget. Mr. Hickok explained we are following the same regiment that they do for the City budget. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE M�TION CARRIED UNANIMOUSLY. • Contract for services — agreement beiween HRA & City, Mr. Hickok stated the City attomey had requested that we take a look at a contract betwieen the City and the HRA. Staff reviewed the 1979 contract language and the HRA reviewed this at the November meeting. Those changes have now been incorporated into the contract. The HRA can either vote to approve the contract or table action and take more time to review it. Chairperson Commers stated in Paragraph 1, the word "attomey" should be removed. Another concern is the first sentence in Paragraph 3c. "The City does not assume any responsibility or liability for the acts or omissions of the officers, employees, or agents of the Authority..." He asked if the League would represent HRA members in the case of a lawsuit. Dr. Bums stated he would look into that and report back to the HRA members. Commissioner Holm pointed out the following issues with the contract: 1 b States the Assistant Executive Director will act as secretary at meetings of the Authority. 1 c The first line, the words "of Fridley" is redundant. 1 c The last sentence states uan" but should read uand" all other duties. 1 g Second line states "of the Authority" should be changed to "by the Authority." 3h Should include a provision for the replacement of the Assistant Executive Director. On the last page, the Executive Director is listed twice; once as the City Manager. HOUSING AND REDEVELOPMENT' AUTH�R�TY �ETING — DECEMBER 2, 2004 Page 4 of 7 Commissioner Schnabel stated she is confused or a� o nted by the Execut etDirector Mr. Hickok is the Community Development Dire pp and asked if that is officially recorded. Dr. Bums stated it is probably included in the job description for that position. Chairperson Commers suggested that appointment be done on an annual basis and included in the minutes. INFORMATION ITEMS: . Update on Fridley Housing Forum #4. Mr. Hickok stated the housing forums v�ere successCounc lethat wi I consol'date all the that wiil be presented to the HRA and the ty information. In the fourth forum there was a tialthousing goals that Itheynsee'for the attendees were given four tasks; list the pote est chan es to those goals and identify city, evaluate the current housing goals, sugg g ortuni to new goals. The final report will includ a�hat the next t p w II be nHe encour ged evaluate whether changes are needed an the members to take a look at the City website to review the presentations, questions and answers. Mr. Hickok also stated that the Comprehensiv �S � s a'focus on he hous ng chapter�of One of the things that may come out of the foru the Comprehensive Plan. . Update on Gateway West. Mr. Bolin stated this past month Leisch Associ �hat w II need to be� addressednprior o took samples to identify any potential hazards demolition of the properties. Lab results have not yet been received, but a cursory review by Kirk indicated that all the homes have some lead paint and asbestos that will require certain precautions during removal. Mr. Bolin also stated that on November 17th'1 57�' Placeuand 931f 3I`� Street�rThese blight analysis of the properties located at 28 . two properties were not under HRA ownership when the previous analysis vvas completed in early January. They are workina f'r the TIF bl ght analys se Jim had report they put together is in the proper form concerr�s writh the preliminary report they prepared last January so he's having them make some changes this time. At the last meeting, Mr. Bolin explained, staff was asked to put together some more recent numbers for the Gateway West project. He reviewed a financial statement Mr. HOUSING AND REDEVELOPMENT AUT',[ipRTTy �ETING — DECEMBER 2, 2004 Page 5 of 7 Casserly's office prepared. This reflects $1.2M in sources of financing, $313,000 is tax increment, a$200,000 grant from the Community Development Block Grant program and $700,000 from the sale of the lots. The bulk of the expenditures are $1.5M for land and building acquisitions, $200,000 for relocation expenses, $200,000 in site preparation costs, $25,000 environmental testing costs, and $75,000 for public improvements. Total uses come in at almost $2.1 M which leaves a deficit for the entire project of $885,000. He further explained that $973,000 has already been invested in this project so from this point forward every dollar spent will be recovered through the TIF payments and the land sale. He stated we're °past the point of no return.° Mr. Bolin also stated Mr. Casserly puts together very conservative and financially sound projections and the $313,000 in TIF is based on present value and the actual numbers by 2021, there will actually be more like $600,000 generated in TIF. Aiso the $700,000 from land sale is a very conservative guess. • Update on Acquisition of 5953 3�d Street. Mr. Bolin explained that a final offer letter was sent to Mr. Hogenson on November 17�'. To date, he has failed to respond. They are going to go ahead and pull together all the papervvork necessar�to move forward writh the condemnation and present it to the HRA at their January 6 meeting. If the HRA members are comfortable with the documentation at that time, they can authorize action to move forward with the condemnation process. If the process is started after the first of the year, it will probably be ear�y summer before they take title to the four-plex at this address and then possibly have some development started by next fall. Commissioner Meyer commented that it is unusual for the property owner to not respond and he questioned if Mr. Hogenson has an attomey. Mr. Bolin stated staff spoke with Mr. Hogenson's father three months ago and he indicated that Mr. Hogenson is receiving the letters from the City but has chosen not to respond in any way. • Community Development Block Grant. Mr. Bolin stated the 2005 Community Development Block Grant applications are due on January 14, 2005. Anoka County is meeting with city staff members throughout the county next week to talk about the process. Mr. Bolin met briefly with Anoka County yesterday and learned that any project that is not considered a high priority based on their consolidated plan will not even be considered. Projects such as the Ashton Avenue trail improvements and the Charles Street Apartment improvements are all rated low to medium on the county scoring sheets. The county indicated the best chance for getting any funding for such projects is to ask for additional funding for Gateway West. The county did give us $200,000 in 2003 and nearly all of that was spent in acquisitions. Staff has looked at different options and has determined they would request $400,000 for 2005. If the county grants the full amount, it would be a � a HOUSING AND REDEVELOPMENI' AUTH�R�TZ' �ETING — DECEMBER 2, 2004 Page 6 of 7 enough to cover the city's costs with the at theirJanuary 6th meet ngff ��II put an application together and present it to the HRA Chairperson Commers asked if the county has done any Community Development Block Grants for commercial projects or environmental clean-up. Mr. Bolin stated commercial projects scored low oa a lable�fortycol mmercial{ pe perties. 2004 timeframe they didn t make any money However, they are looking at establishing new rankings starting in 2005. Environmental clean-up does have a higher priority. In 2004, the county onle ua s�of $4M dHe also throughout the whole county and there was a total fundmg r q stated that housing programs for low to moderate income levels and senior programs seem to score the highest with the county and that's where a bulk of the money is going. Chairperson Commers asked if there is any super fund money still available. Mr. Hickok stated there is still some DEED'n theyr strict olns about puttiny the land attached. There's a lot of talk about rework g back into a use that actually reduces the amoui�t onclaa�nP�minated site an'd puttll gbn helpful in situations where we would be redeve p g a new industrial use. The legislature will be conskee n ookin natghe DEED dollar and put some of that land back into use. Staff v+nll p 9 keep watching what's happening in the area of clean-up operations. Dr. Bums asked if staff has heard anything ab Atlsha art of it wighStaxin9pau hority �n the commg session and whether the county ED P the City of Fridley. He also asked about the disposition of the eight homes along East River Road that the county owns. Mr. Bolin stated there was only a brief inention of the EDA issues by the couniy recently. Mr. Hickok stated one of the homes owned'tlYand c eanedaup g The ti nentrwas otput had been a source of concem has been so tion and it a ears that these houses back on the market .as an affordable housing op PP five of the eight homes have a new lease on life. . Monthly Housing Report. Mr. Bolin stated six new loan applications were sent out in November with only one being retumed and there were no closings. However, there were 16 closings this year compared to four last year so overall the program has become more popular. The Operation Insulation performed one appointment and did some weatherization work for that person. There were no calls for the remodeling advisor in November. e " � HOUSING AND REDEVELOPMEN'T AUTHORITy MEgTING — DECEMBER 2, 2004 Page 7 of 7 Commissioner Gabel asked for the aging report that is usually included. Mr. Bolin explained that he has not yet received that report. Commissioner Meyer suggested that the City be more aggressive about informing the residents about the programs the City offers. Dr. Bums asked how the City program loan rates compare to standard home equity loan rates. Mr. Bolin stated the City is at 4% compared to the standard 5%% from a commercial lender. Commissioner Meyer questioned if the interest rate could be lowered. Commissioner Gabel suggested that the information listed on the City's cable station include details about the loan programs. Mr. Bolin offered to meet with Center for Energy and the Environment to try and come up with a more aggressive campaign for 2005 and report back at the January meeting. � Non-Agenda Update: Mr. Hickok provided a brief update on the John DeMello and Town Center developments. ADJOURN: MOTION by Commissioner Gabel, seconded by Commissioner Schnabel, to adjourn. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MEETING ADJOURNED AT 8:35 PM. Respectfully submitted by, ���2i!G��l-�i�Gf �� Rebecca Brazys Recording Secretary �s - — : CITY OF FRIDLEY SIGN-IN SHEET HOUSING & REDEVELOPMENT AUTHORITY MEETING � �G����� �� ��� Name and Address Agenda Item of Interest