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HRA 01/06/2005 - 6197Aa �r2 CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING Thursday, January 6, 2005, 7:30 P.M. AGENDA LOCATION: Council Chambers (upper level) CALL TO ORDER: ROLL CALL: APPROVAL OF MINUTES: December 2, 2004 CONSENT AGENDA: Consider Claims & Expenses ............................................................ ..............................1 ACTION: Contract for Services — Agreement between HRA & City ......................... ..............................2 INFORMATION ITEMS: 2005 CDBG Application ................................................................... ............................... 3 Updateon Gateway West ................................................................ ............................... 4 MonthlyHousing Report .................................................................... ..............................5 ADJOURNMENT: N 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 VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION: • Approval of Preliminary Budget — 2005. HOUSING AND REDEVELOPMENT AUTHORITY MEETING — DECEMBER 2, 2004 Page 2 of 7 Mr. Bolin stated at the November 2nd meeting the HRA reviewed the budget draft and the input at that meeting lead to some revisions, including lowering the revenues for the Lake Pointe district and lowering those expenses. Also removed was the $150,000 from the general fund for the reconstruction of the Columbia Park parking lot. Chairperson Commers referred to the memo from Mr. Bolin regarding the reduction in Lake Pointe revenue and the corresponding reduction in payment for the parking 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 HRH'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 were 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 would reduce their market value which would reduce the amount of tax increment generated which would also reduce the amount we were obligated to pay to Medtronic. Commissioner Schnabel questioned the last sentence in the memo from staff which states "The Commission is not interested in providing additional assistance at this time." She stated she doesn't recall that a vote was actually taken on this matter. Mr. Bolin stated the HRA has not taken any action on this matter. Where that statement came from was staffs 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 this project. It's more about getting the documentation needed to support this so the HRA can consider the project. The concern was that including in the budget may give the appearance that this was a 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 AUTHORITY MEETING — DECEMBER 2, 2004 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 MOTION CARRIED UNANIMOUSLY. • Contract for services — agreement between HRA & City. Mr. Hickok stated the City attorney had requested that we take a look at a contract between 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 "attorney" 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. Burns stated he would look into that and report back to the HRA members. Commissioner Holm pointed out the following issues with the contract: lb States the Assistant Executive Director will act as secretary at meetings of the Authority. 1c The first line, the words `of Fridley" is redundant. 1c The last sentence states "an" but should read "and" all other duties. 1g 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 AUTHORITY MEETING — DECEMBER 2, 2004 Page 4 of 7 Commissioner Schnabel stated she is confused as to the various roles the staff has. Mr. Hickok is the Community Development Director appointed by the Executive Director and asked if that is officially recorded. Dr. Burns 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 were successful. The end product will be a report that will be presented to the HRA and the City Council that will consolidate all the information. In the fourth forum there was an interesting work session in which the attendees were given four tasks; list the potential housing goals that they see for the city, evaluate the current housing goals, suggest changes to those goals and identify new goals. The final report will include the feedback and have an opportunity to evaluate whether changes are needed and what the next step will be. He encouraged the members to take a look at the City website to review the presentations, questions and answers. Mr. Hickok also stated that the Comprehensive Plan is due to be rewritten by 2008. One of the things that may come out of the forums is a focus on the housing chapter of the Comprehensive Plan. • Update on Gateway West. Mr. Bolin stated this past month Leisch Associates went through all the buildings and took samples to identify any potential hazards that will need to be addressed prior to 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, SEH conducted the fieldwork for a TIF blight analysis of the properties located at 281 57th Place and 5931 3rd Street. These two properties were not under HRA ownership when the previous analysis was completed in early January. They are working with Jim Casserly to make sure the report they put together is in the proper format for the TIF blight analysis. Jim had concerns with 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 AUTHORITY MEETING — 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. Also the $700,000 from land sale is a very conservative guess. • Update on Acquisition of 5953 3rd Street. Mr. Bolin explained that a final offer letter was sent to Mr. Hogenson on November 17tH To date, he has failed to respond. They are going to go ahead and pull together all the paperwork necessary to move forward with the condemnation and present it to the HRA at their January 6tH 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 early 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 attorney. 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 anyway. • 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 HOUSING AND REDEVELOPMENT AUTHORITY MEETING — DECEMBER 2, 2004 Page 6 of 7 enough to cover the city's costs with the four -plex acquisition. Staff will put an application together and present it to the HRA at their January 6t" meeting. 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 on their priority list and in the 2000 to 2004 timeframe they didn't make any money available for commercial properties. However, they are looking at establishing new rankings starting in 2005. Environmental clean -up does have a higher priority. In 2004, the county only had $1.3M to distribute throughout the whole county and there was a total funding request of $4M. He also 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 money available, but has many strings attached. There's a lot of talk about reworking the restrictions about putting the land back into a use that actually reduces the amount of clean -up necessary. This would be helpful in situations where we would be redeveloping a contaminated site and putting in a new industrial use. The legislature will be considering loosening the reins so we could put some of that land back into use. Staff will keep looking at the DEED dollars and keep watching what's happening in the area of clean -up operations. Dr. Burns asked if staff has heard anything about the county's legislative program for the coming session and whether the county EDA is a part of it with taxing authority in 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 mention of the EDA issues by the county recently. Mr. Hickok stated one of the homes owned by the county along East River Road that had been a source of concern has been sold and cleaned up. The intent was to put these houses back on the market as an affordable housing option and it appears that 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 returned 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. HOUSING AND REDEVELOPMENT AUTHORITY MEETING — 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. Burns 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 Y2% 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, _ Rebecca Brazys Recording Secretary COMMUNITY DEVELOPMENT DEPARTMENT DEVELOPMENT DIRECTOR Memorandum DATE: December 29, 2004 TO: William W. Burns, Executive Director of the Housing and Redevelopment Authority FROM: Scott Hickok, Community Development Director SUBJECT: Contract for Staff Services Introduction At the HRH's meeting in December, they reviewed the contract written and signed between the City and the HRA in 1979. After looking closely at the language and suggested modifications by staff, the HRA determined that additional modifications would be necessary for the language to reflect current roles in the City. Contract changes ranged from removing the language that the Assistant Executive Director will act as secretary at meetings of the Authority to removing redundancy of such as the words of Fridley after the Finance Director, City Engineer, and Planner. A question was also raised about the redundancy of the City Manager and Executive Director Signatures on the final page of the document. This is one essential redundancy, since Dr. Burns serves as both the City Manager and the Executive Director of the HRA. Both a marked -up copy and a revised clean copy have been included in your packet for your convenience. If the Authority is comfortable with the revised language, the clean copy can be used as a contract approval exhibit and the original will be available for signatures. Staff Recommendation Staff recommends that the HRA review the contract for Staff services with the suggested modifications and approve as submitted. CONTRACT FOR STAFF - SERVICES FOR THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY THIS AGREEMENT, entered into this day of , 2005, by and between the City of Fridley, a municipal corporation, hereinafter referred to as City, and the Fridley Housing and Redevelopment Authority, a public corporation organized under the laws of the State of Minnesota, hereinafter referred to as Authority. WHEREAS, the Authority desires to engage the City to render certain technical advice and assistance in connection with the activities and projects of the Authority. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein set forth, the Authority and the City hereby agree as follows: 1. Scope of Services to be Supplied by Fridley: Fridley shall furnish to the Authority all necessary services required by the Authority and as called for by the Authority, including but not limited to, furnishing the services of an Executive Director, Assistant Executive Director, Finance Director, Engineering Staff, Planning Staff, Attorney, and Secretary (all hereinafter called "Services "), and related equipment as below described and referred to (all hereinafter called "Equipment "). a. The Executive Director shall be the City Manager or a person designated by the City Manager. He shall have responsibility for the general supervision of the projects of the Authority and supervision of the personnel of the City €F+dley who are to furnish services to the Authority pursuant to this agreement. He shall perform, or have performed, such activities as the Authority shall from time to time reasonably request. He shall be responsible for the care and custody of all funds of the Authority and for the deposit thereof in the name of the Authority in such bank or banks as the Authority from time to time shall designate; for the keeping of regular books of accounts showing receipts and expenditures; for budget and budgeting activities; for rendering to the Authority, as requested by the Authority, of an account of the income and expenses of the Authority; and for rendering such additional financial and other reports as the Authority from time to time shall request. b. The Assistant Executive Director shall be that person designated by the Executive Director and approved by the Authority. He shall perform all duties required by the Executive Director, including, but not limited to, the following: coordinating and supervising all aspects of the planning and redevelopment of projects of the Authority, including work of and between consultants, contractors, and other employees of the City €Fidley who are to provide services to the Authority pursuant to this agreement; supervising and coordinating with, answering, and acting on requests of, and meeting with representatives of, other units of government; meeting with and counseling local community groups and residents; keeping of the records of the Authority; ae#+R -as keeping the seal of the Authority; and all other duties properly and reasonably requested by the Executive Director. C. The Finance Director shall be the City Finance Director, ef FFidley, and shall perform all duties required by the Executive Director, including, but not limited to, the following: Preparation and maintenance of all financial books and records, and supervision of the disbursements of funds; preparation of periodic reports reflecting income and expenditures; internal audits, and other checks and revisions of the financial status of projects; maintenance of all payroll, related accounts, including documentation of amounts to be billed under the terms of this contract; and all other duties necessary to the financial administration of the Authority and its projects. d. The Engineering Staff shall consist of the City Engineer 9 � and his staff, and shall perform all duties required by the Executive Director, including, but not limited to, the following: All engineering work necessary to the timely and successful completion of all work needed in connection with Authority projects and not contracted for by the Authority with other engineering consultants or contractors; coordination of all engineering work; public works recommendations; review of plans and specifications for project improvements prepared or submitted by consultants or contractors; preparation of plans and specifications for all public improvement projects; and review and recommendation on all plans as they may relate to streets, highways, sidewalks, alleys, utility services, and construction techniques. e. The Planning Staff shall consist of the City Planning Staff of €-rid{ea}, and it shall perform all duties required by the Executive Director, including but not limited to, the following: All planning work necessary to the timely and successful completion of all Authority projects; coordination of all planning work; and review and recommendation on all plans as they relate to land use, land controls, and other general planning activities. f. The Attorney shall be the Attorney of the Candle Authority, and his assistants, and shall perform all duties required by the Executive Director, Okec -tee including but not limited to, the following: All legal work necessary to the timely and successful completion of the projects of the Authority; drafting and reviewing contracts; rendering legal advice and opinions on matters relating to the projects, when required by the Authority; attending meetings of the Authority; and assuring that their activities in relation to the projects a^+ vities are in conformance with local, State and Federal Law. g. The Secretary shall be any one of the secretaries made available from time to time by the Director for use of by the Authority from the personnel of Fridley and shall perform all duties required of the position, including but not limited to, the following: Taking of d in t ping --d-filing administrative tasks for any of the Authority's administrative staff; taking minutes and keeping records of meetings of the Authority, public hearings, and staff meetings as required by the g"., * Executive Director; and any other secretarial work necessary to the timely and successful completion of the Authority's projects, as required by the D4eEteF-eF Executive Director. h. Equipment shall include office space, supplying of normal daily business postage and office supplies, use of telephone and +°'°^" ^h and reproduction equipment, car expense, travel expense, and such other items as from time to time may reasonably and properly be needed by the Authority and as Cri�the City may then agree to provide. 2. Payment. The Authority shall pay to the City for services provided hereunder its pro rata share the actual cost of wages and benefits thereon of employees furnished by the City and such other costs as office supplies, sundry materials, photocopy and printing charges, and vehicle charges, all to be paid for by the Authority at the City's cost plus space and occupancy charges at the currently prevailing rate and also €u4her p4us use charges for office furniture and equipment based on a reasonable depreciation schedule. In addition to the actual cost of services provided under this agreement, the Authority shall pay the City for overall administrative expenses not to exceed five (5 %) per cent of the salaries of the personnel services aeskjaed attributable to the Authority. 3. General Provisions. A. Any of the work product, drawings, designs, applications, and other materials prepared by the professional and clerical staff on for the Authority shall remain the property of the Authority. B. The City shall make available to members of the Authority staff as appointed by the City Manager pursuant to this agreement reasonable space for the performance of their work. Such reasonable space shall include the use of computers type. ��s and equipment of the City and filing cabinets. C. Liability for Injury or Damage. The City does not assume any responsibility or liability for the acts or omissions of the officers, employees, or agents of the Authority appointed pursuant to this agreement who in the performance of work for the Authority have done something which gives cause or rise to any claim for damage. In this regard, it shall be the responsibility of the City, together with the Authority, to ensure that any insurance policies and workmen's compensation policies provide coverage for the professional and clerical staff and commissioners when doing work for the Authority. D. Amendments. This agreement may be amended or modified at any time by written agreement between the parties hereto. Such amendment or modification may be made by either party by giving two weeks (14 days) written notice to the other party of the intended modification. When accepted by the other party, the amendment or modification shall become binding as if a part of this agreement. E. Minnesota Law to Govern. This agreement shall be governed by the laws of the State of Minnesota. F. Term of Agreement. The term of this agreement shall be perpetual. G. Entire Agreement. This agreement, when executed, shall be the entire agreement between the parties for the sharing of services and equipment. H. Ganeella Replacement of the Executive Director or Assistant Executive Director. In the event the Authority is not satisfied with service of the Executive Director or the Assistant Executive Director, to be provided hereby, it may request the City Manager, by giving thirty (30) days written notice, to replace the Executive Director or Assistant Executive serving the Authority. The Authority or City may cancel this agreement, by giving written notice to the Manager at least (90) days before such action is to be taken. IN WITNESS WHEREOF, the City and the Authority have executed this agreement this day of .2005. Fridley Housing and Redevelopment Authority By: Its Chairperson AND Its Executive Director CITY OF FRIDLEY By: Its Mayor AND Its Manager CONTRACT FOR STAFF - SERVICES FOR THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY THIS AGREEMENT, entered into this day of 2005, by and between the City of Fridley, a municipal corporation, hereinafter referred to as City, and the Fridley Housing and Redevelopment Authority, a public corporation organized under the laws of the State of Minnesota, hereinafter referred to as Authority. WHEREAS, the Authority desires to engage the City to render certain technical advice and assistance in connection with the activities and projects of the Authority. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein set forth, the Authority and the City hereby agree as follows: 1. Scope of Services to be Supplied by Fridley: Fridley shall furnish to the Authority all necessary services required by the Authority and as called for by the Authority, including but not limited to, furnishing the services of an Executive Director, Assistant Executive Director, Finance Director, Engineering Staff, Planning Staff, Attorney, and Secretary (all hereinafter called "Services "), and related equipment as below described and referred to (all hereinafter called "Equipment "). a. The Executive Director shall be the City Manager or a person designated by the City Manager. He shall have responsibility for the general supervision of the projects of the Authority and supervision of the personnel of the City who are to furnish services to the Authority pursuant to this agreement. He shall perform, or have performed, such activities as the Authority shall from time to time reasonably request. He shall be responsible for the care and custody of all funds of the Authority and for the deposit thereof in the name of the Authority in such bank or banks as the Authority from time to time shall designate; for the keeping of regular books of accounts showing receipts and expenditures; for budget and budgeting activities; for rendering to the Authority, as requested by the Authority, of an account of the income and expenses of the Authority; and for rendering such additional financial and other reports as the Authority from time to time shall request. b. The Assistant Executive Director shall be that person designated by the Executive Director and approved by the Authority. He shall perform all duties required by the Executive Director, including, but not limited to, the following: coordinating and supervising all aspects of the planning and redevelopment of projects of the Authority, including work of and between consultants, contractors, and other employees of the City who are to provide services to the Authority pursuant to this agreement; supervising and coordinating with, answering, and acting on requests of, and meeting with representatives of, other units of government; meeting with and counseling local community groups and residents; keeping of the records of the Authority; keeping the seal of the Authority; and all other duties properly and reasonably requested by the Executive Director. C. The Finance Director shall be the City Finance Director, and shall perform all duties required by the Executive Director, including, but not limited to, the following: Preparation and maintenance of all financial books and records, and supervision of the disbursements of funds; preparation of periodic reports reflecting income and expenditures; internal audits, and other checks and revisions of the financial status of projects; maintenance of all payroll, related accounts, including documentation of amounts to be billed under the terms of this contract; and all other duties necessary to the financial administration of the Authority and its projects. d. The Engineering Staff shall consist of the City Engineer and his staff, and shall perform all duties required by the Executive Director, including, but not limited to, the following: All engineering work necessary to the timely and successful completion of all work needed in connection with Authority projects and not contracted for by the Authority with other engineering consultants or contractors; coordination of all engineering work; public works recommendations; review of plans and specifications for project improvements prepared or submitted by consultants or contractors; preparation of plans and specifications for all public improvement projects; and review and recommendation on all plans as they may relate to streets, highways, sidewalks, alleys, utility services, and construction techniques. e. The Planning Staff shall consist of the City Planning Staff, and it shall perform all duties required by the Executive Director, including but not limited to, the following: All planning work necessary to the timely and successful completion of all Authority projects; coordination of all planning work; and review and recommendation on all plans as they relate to land use, land controls, and other general planning activities. f. The Attorney shall be the Attorney of the Authority, and his assistants, and shall perform all duties required by the Executive Director, including but not limited to, the following: All legal work necessary to the timely and successful completion of the projects of the Authority; drafting and reviewing contracts; rendering legal advice and opinions on matters relating to the projects, when required by the Authority; attending meetings of the Authority; and assuring that their activities in relation to the projects are in conformance with local, State and Federal Law. g. The Secretary shall be any one of the secretaries made available from time to time by the Director for use by the Authority from the personnel of Fridley and shall perform all duties required of the position, including but not limited to, the following: administrative tasks for any of the Authority's administrative staff; taking minutes and keeping records of meetings of the Authority, public hearings, and staff meetings as required by the Executive Director; and any other secretarial work necessary to the timely and successful completion of the Authority's projects, as required by the Executive Director. h. Equipment shall include office space, supplying of normal daily business postage and office supplies, use of telephone and reproduction equipment, car expense, travel expense, and such other items as from time to time may reasonably and properly be needed by the Authority and as the City may then agree to provide. 2. Past. The Authority shall pay to the City for services provided hereunder its pro rata share the actual cost of wages and benefits thereon of employees furnished by the City and such other costs as office supplies, sundry materials, photocopy and printing charges, and vehicle charges, all to be paid for by the Authority at the City's cost plus space and occupancy charges at the currently prevailing rate and also use charges for office furniture and equipment based on a reasonable depreciation Fridley Housing and Redevelopment Authority By: Its Chairperson AND Its Executive Director CITY OF FRIDLEY By: Its Mayor AND Its Manager ri AGENDA ITEM HRA MEETING OF JANUARY 6, 2005 CITY OF FRIDLEY Date: December 27, 2004 To: William Burns, HRA Executive Director From: Scott Hickok, Community Development Director Paul Bolin, Asst. Executive HRA Director Subject: 2005 CDBG Application M -04 -176 IN I KUUUGTION As you may recall from past years, the Community Development Block Grant (CDBG) program makes Federal money, through HUD, available to Counties for redistribution among cities, townships, and service organizations. The goal of the CDBG program is, according to HUD literature, to develop, "viable communities by providing decent housing, suitable living environments and expanding economic opportunities, principally for persons of low to moderate income." In 2005, Anoka County will redistribute $1.3 million to city and township projects on a competitive basis. All projects must be an eligible activity, meet national objectives, and consistent with the goals of the County's Consolidated Plan. The maximum grant amount to any one city is $300,000. Acquisition and removal of blighted properties is a high priority, both nationally and in Anoka County. The City successfully obtained $200,000 in 2003 for acquisition and demolition for the Gateway West project. A review of the application materials and discussion with Anoka County staff have led City staff to believe a similar application, to acquire the remaining property in the Gateway West project area, would have a strong chance of being funded. Based on this information staff has prepared an application seeking an additional $167,600 to cover the purchase price, relocation expenses, and demolition costs for the property. Applications for 2005 funds are due to Anoka County on January 12th, 2005. Staff presented a resolution authorizing submittal of the application to the City Council on January 3, 2005. DATE: December 28, 2004 TO: William W. Burns, Executive Director of HRA FROM: Scott J. Hickok, Community Development Director Paul Bolin, Assistant Director of HRA SUBJECT: Gateway West Update M -04 -177 The purpose of this memo is to provide a summary of Gateway West activity since the Authority's meeting in December. 5355 3rd Street (4 -Plex) — Staff was contacted by a realtor, Jim Kormendy, representing Art Hogensen on December 7th to indicate that Mr. Hogensen would like to sell his property to the Authority. Staff accompanied Mr. Kormendy, the Authority's appraiser and blight analyst on an inspection of the property on December 14 h. The interior of the 4 -plex is in a relatively poor and blighted condition. Staff is expecting the blight analysis and appraisal by the first week of January. Upon receipt of the appraisal staff will make a formal purchase offer. 281 57tt' Place — Staff spoke with Dave Harvet on December 7tn, 8cn, & 9th regarding the potential of the HRA purchasing his mother's home. On December 9th staff sent Mr. Harvet a letter (attached), at his request, to affirm that the HRA would like to purchase his mother's property. Mr. Harvet was going to contact staff, in writing, the week of December 13th with a price that would be acceptable to his mother. Mr. Harvet has not followed through in getting back to staff. Staff is recommending that the Authority no longer pursue the purchase of the Harvet home and, instead, build around it as they must not be seriously interested in selling to the Authority. H: \-- Paul's Documents\HRA\HRA Agenda Items\2005\January 6, 2005\January2005HRA Memo (Gateway West SUmmitUPdate).doc December 9, 2004 Mr. David Harvet C/O Fridley High School 6000 W. Moore Lake Drive Fridley, MN 55432 Dear Mr. Harvet: The purpose of this letter is to follow up on the phone conversations you and I have had over the past two days concerning the HRH's desire to acquire your mother's home and property at 571 57"' Place. As a public body, entrusted with taxpayer money, the HRA is bound by a number of statutes that regulate the amount the HRA may pay for a property, prescribe relocation benefits, and define comparable properties. However, as we had discussed, the HRA is interested in reaching an agreement on the sale of the property to develop the Gateway West project in the most efficient design layout. Once you have had an opportunity to discuss the acquisition further, with your mother, I look forward to hearing back from you. I am hopeful that we can come to a resolution that is acceptable to your mother within the legal framework the HRA is required to operate within. Sincerely, Paul Bolin Assistant Executive Director Fridley HRA M -04 -108 Fridley HRA Housing Program Summary Cover Page January 6, 2005 HRA Meeting R_ eport Description Loan Application Summary Loan application activity (e.g. mailed out, in process, closed loans) for December 2004 and year -to -date. Loan Origination Report Loan Servicing Report Remodeling Advisor & Operation Insulation Loan originations for December 2004 and year -to -date. Loan servicing by Community Reinvestment Fund (CRF) for the month of November 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. H:\— Paul's Documents\HRA \Loan Program ReportsToan Servicing Reports\2004\Housing Program Cover Page (January2005).doc E O O m N U) N 1.� 0-0 CD CD a) .2 •2 0 CL .� CL � Q N � C O !0 N -j :.i N C .O O d R N N V d a o Qa w N C i — m ca Q ,� H Q � a � c m to N J V H C H O N V v _ -O O Q CD N ++ O _ �+ O g 2O r z4CO) co OTtiONNI M N O M ti O N N I '0 n C) 'IT O r O T T o o O T 0 0 01 —0000001r NON0000I ct ea c c C 10 - � U. U. LL = c :) 3 p C x LL LL c LL LL >% m J O = C1�LL �W� C d = E O W E E �. y C > ,0 W L •K L V /0 O 2 fx �0 C % O d ca 4 0 0 0 W 0 2 2 2 2 0 I C 2 2 O Fridley HRA Loan Origination Report December 2004 Loan / Grant Originations 1 2% Kitchen remodel 3 7% General plumbing 1 2% This 7 Previous Electrical system polo Basement finish Month 0% Months 2 YTD Loans Issued 3 2 Misc. interior projects 24 11% 26 Grants Issued Siding /Fascia /Soffit 3 _ Roofing 4 9% Total 2 20% 24 1 26 Funding Sources 1 2% Landscaping 3 7% Misc. exterior projects 3 7% This Previous Month Months YTD Fridley HRA $ 2,505 $ 280,909 $ 283,414 MHFA $ 4,001 $ 140,933 $ 144,934 Met Council $ _ $ $ CDBG /HOME $ _ $ $ _ CEE $ - $ 18,846 $ 18,846 Other $ _ $ _ $ _ Total $ 6,506 $ 440,688 $ 447,194 Types of Units Improved This Previous Month Months YTD Single Family 2 24 26 Duplex Tri-Plex 4 to 9 Units 10 to 20 Units 20+ Units Total 2 24 26 Types of Improvements Interior # of Projects % of Total Bathroom remodel 1 2% Kitchen remodel 3 7% General plumbing 1 2% Heating system 7 15% Electrical system polo Basement finish _ 0% Insulation 2 4% Room addition 3 7% Misc. interior projects 5 11% Exterior Siding /Fascia /Soffit 3 7% Roofing 4 9% Windows /Doors 9 20% Garage 1 2% Driveway /sidewalk 1 2% Landscaping 3 7% Misc. exterior projects 3 7% Monthly Servicing Report Principal Paid Interest Paid Total Payments Recd Ending Principal Balance 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 Fridley HRA Loan Servicing Report November 2004 * Pool Pool Pool Pool Deferred Installment Installment Deferred Loans Loans Loans Loans Total - 8,776.36 30,511.55 - 39,287.91 - 767.16 3,467.97 - 4,235.13 - 9,543.52 33,979.52 - 43,523.04 31,500.66 186,360.32 617,669.34 13,355.92 848,886.24 7 18 51 3 79 17,112.70 2.01% $ 482.00 $ 43,041.04 *November Collection Report received December 10. % Of Delinquent Delinquent Delinquent Delinquent Loans Payments Principal Principal - $ - $ - 0.00% 1.00 $ 278.03 $ 9,007.70 1.06% 3.00 $ 2,272.74 $ 8,105.00 0.95% Total 4.00 $ 2,550.77 $ 17,112.70 2.01% *November Collection Report received December 10. V L O U) a W O AE NW I.I.. O ■� V+ � Q N r N O L — E V LL O w o� m m E N O r r� r N r N r r r� N d CL Q N C -a d d O r 10 ti d' O O r N r r N S CM CL 0 r It Cl) N O O O CO CO tf) r N a Q H • a • • L L _ L E 3 N m -0 C C U >, O — 0) > U O C M ��m Q2Qcb0Z0 cc CU c o� �_ N O •� � N O r r� r N r N r r r� d H C 'O d d E d = O r 10 ti d' O O r N r r N CM CL 0 a Q H C � d d E 3 O r CD It O O r N r r N M Q N Q • L CD >, o a) ui C U • Q O Q> �L.LmQ2��Qcn0z0 LO N N co co � R R O 7 O C7 v C9 L= Q O d o C �O \e LO M ti IC is R O 3 O � V � c a o d C e O a CL El 'enter for Energy and Environment CEE Financial Resources 212 3rd Avenue North, Suite 560 A Minneapolis, MN 55401 A. Phone: (612) 335 -5880 A. Fax: (612) 335 -2650 TO: FROM: SUBJECT: DATE: Paul Bolin, City Dave King, CEE Program Activity December 15, 2004 Lad-1 Below is a comparison of home improvement financing activity in various communities for 2004: Program Fridley Anoka Blaine Col. Hts Coon Rap City Funded Programs 16 2 12 MHFA Community Fix-up 6 1 15 6 22 MHFA Fix-up 1 7 11 1 CEE Home Energy 4 1 1 MHFA Rental Rehab 2 2 CEE Rental Energy Loan 2 1 Private Bank Minnesota 1 1 TOTAL 28 10 43 11 23 If you have any questions or comments, please contact me at 612 - 335 -5889. Thank you. www.mncee.org Equal Opportunity Employer 12t EQUAL HOUSING LENDER