HRA 04/07/2005 - 6200CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING
Thursday, April 7, 2005, 7:30 P.M.
AGENDA
LOCATION: Council Chambers (upper level)
CALL TO ORDER:
ROLL CALL:
APPROVAL OF MINUTES:
March 3, 2005
CONSENT AGENDA:
Consider Claims & Expenses .......................................................... ............................... 1
INFORMATION ITEMS:
SE Quad Parking Study Update ....................................................... ............................... 2
GatewayWest Update .................................................................... ..............................3
Home and Garden Fair Update ......................................................................... ............................... 4
MonthlyHousing Report .................................................................... ..............................5
ADJOURNMENT:
MY OF
FRIDLEY
AGENDA ITEM
HRA MEETING OF APRIL 7, 2005
Date: MARCH 30, 2005
To: William Burns, HRA Executive Director
From: Paul Bolin, Asst. Executive HRA Director
Subject: SE Quad Parking Study - Update
M -05 -25
INTRODUCTION
A contract was awarded to the engineering firm of Bonestroo, Rosene, & Anderlik
(BRA) to conduct a future parking needs analysis for the SE quadrant of
Mississippi and University Avenue. BRA has been conducting parking counts
over a number of days to identify peak demand times and locations. Additionally,
BRA has engaged in a number of conversations with the representatives of all
four properties to further analyze their potential parking needs.
BRA expects to finish the parking counts early next week and expects to provide
staff with a draft report of the study by the middle of April. Staff will bring the
study results and recommendations forward at the HRA's May 5th meeting. It is
hoped that this study will aid the HRA in determining if an early sale of the Target
NOC parking lot is desirable.
H:\—Paul's DOCUments\HRA\HRA Agenda Items\2005\April 7, 2005 \April7HRA(ParkingStudyUpdate Memo).doc
AM AGENDA ITEM
OF HRA MEETING OF APRIL 7, 2005
FRIDLEY
Date: March 30, 2005 pf
To: William Burns, HRA Executive Director
From: Paul Bolin, Asst. Executive HRA Director
Subject: Gateway West Update — Hogenson Property & Harvet Property
M -05 -26
Hogenson Property 5955 3nd Steet
Great news! We closed on the property on Thursday, March 31St. The final price
(with closing costs & title work) was $277,422.50.
Harvet Propert y
On March 4, 2005 staff sent a letter giving the Harvet's, at their request, until
April 1 to accept or reject the HRA's final offer for the purchase of 271 57th
Avenue. The Harvet's responded on March 22 that, in essence they still wanted
$249,000 for their property and that they would like more information on
relocation benefits.
Staff contacted Betty Grimm, of Wilson Development Services, and asked that
she get in contact with Mrs. Harvet to answer her questions on relocation. (I have
attached Betty's recap of the conversations to your packet). City Staff also spoke
with Gary Harvet on two separate occasions over the past week and extended
the deadline for an agreement until Wednesday April 6. Staff is still hopeful that
an agreement can be reached, but fully prepared to proceed on the project if we
are not successful in acquiring the Harvet property.
Staff will provide the HRA with more details and the Harvet's decision at the
meeting on April 7th
H: \— Paul's Documents\HRA\HRA Agenda Items\2005\April 7, 2005\ April7HRA (GatewayWestUpdateMemo).doc
FRIDLEY
FRIDLEY MUNICIPAL CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY, MN 55432
(763) 571 -3450 • FAX (763) 571 -1287 • TTD/TTY (763) 572 -3534
March 4, 2005
Ms. Kathleen Harvet
271 57th Avenue NE
Fridley, MN 55432 -5421
RE: Final Offer to Purchase
Dear Ms. Harvet:
On March 3, 2005 the Fridley Housing and Redevelopment Authority (HRA) met
in an executive session to discuss the negotiations related to the potential
purchase of your property at 271 57th Avenue NE. As a result of the meeting,
and your son Gary's request to keep the HRA's February 10, 2005 offer on the
table, the HRA is prepared to keep the following offer available to you until April
1, 2005. If an agreement cannot be reached by that time, the HRA will most
likely move forward on the Gateway West redevelopment project without the
inclusion of your property.
To restate the HRA's final offer, the HRA hereby offers to all parties who may
have an interest in the real estate to be acquired, the sum of $189,900.This
amount has been estimated to be just compensation for such property -based
upon the fair market value of the property and relocation costs based on
comparable properties. A summary of the amount set out above as just
compensation is as follows:
A. Identification of the real property to be acquired.
a. PID #233024230013
b. 271 57th Avenue NE, Fridley, MN 55432
B. Type of interest to be acquired,.
a. Fee Simple
C. Identification of improvements including fixtures which are to be
acquired:
a. All buildings or other structures
b. All special purpose immovable fixtures
D. Identification of real property improvements including fixtures not
owned by the owner of the land.
a. None identified
E. Summary of fair market value and offer:
a. Land and Improvements $118,000
b. Relocation benefits 71,900
c. Total offer $189,900
- • •1 • 1. �. • • • • •' • • - • qn-
This offer is based on a review and analysis of an appraisal of this property by a
qualified appraiser and by the identification of a comparable property (for the
purposes of determining relocation benefits) by the HRH's relocation consultant.
This amount is not less than the approved appraisal of its fair market value. Our
appraiser did not consider any increase or decrease in the fair market value that
may be caused by the Gateway West redevelopment project under which your
property is to be acquired, nor did he consider the likelihood that it would be
acquired. Only physical deterioration within your reasonable control was
considered in the appraisal. Our determination of just compensation includes
relocation benefits based on the identification of comparable properties.
Our offer to you is based on fair market value. As defined by the Minnesota
State Supreme Court, fair market value of a piece of property is the amount of
money in cash which a purchaser, willing but under no compulsion to buy, would
pay to an owner, willing but not obliged to sell, with both parties being fully
informed.
If you decide to accept this final offer, the parcel will be acquired by direct
purchase and you will be paid upon satisfactory evidence of marketable title.
Please call me at 572 -3591 should you have any questions or if you would like to
meet in person for further clarification of the HRA's offer. I will be out of the office
until March 14tH
Sincerely,
i�
Paul Bolin, AICP
Assistant Executive Director, Fridley HRA
cc: David Harvet
C- 05-12.
KATHLEEN HARVET
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
271 57th Place NE
Fridley, MN 55432
March 22, 2005
Paul Bolin, AICP
Assistant Executive Director, Fridley HRA
Fridley Municipal Center
6431 University Ave. NE
Fridley, MN 55432
Dear Mr. Bolin,
I am writing in response to your letter of March 4, 2005.
I was very surprised to receive your letter extending the final offer
deadline for my property until April 1, 2005. Prior to the previous
final offer deadline of February 28th, my son Gary requested an
extension. There was no response from you to his request, so I
delivered a letter to your office declining your final offer on
February 28, 2005. To this date, the City of Fridley and the HRA has
not addressed the concerns brought forward in my previous letter (copy
enclosed). If I am to take your extension seriously, your office must
take my previous letter into consideration. A reasonable offer must be
made for my property, or the answer is still no.
Of concern to me and my family is the below market value appraisal of
my property made by your appraiser. The $118,000 for land and
improvements is far below the actual fair market value of the property.
A one and a half story house with an attached garage on over two city
lots is worth much more than the amount that you have offered.
Also, I am curious as to what defines the relocation benefits. It
almost appears that the City of Fridley and the HRA are using the
$71,900 relocation benefits to supplement the money offered for land
and improvements. If this is the case, then there are really no
relocation benefits. The money offered is only compensation for the
land and improvements.
Mr. Bolin, please feel free to call and /or write to clarify the
definition of relocation benefits and how these benefits relate to my
land and improvements offer.
In an attempt to further clarify the issues surrounding your offer and
my response, my family and I attended the last HRA public hearing on
March 3rd, 2005. My property was on the agenda for this meeting. I was
very disappointed to have my property taken "off the table" and sent to
executive committee. I was also offended to be asked to leave the
hearing, and then asked to leave the building. My sons and I arrived
at the hearing intending to answer any questions
letter and we were prepared to engage in any rea
the HRA. In hindsight, it would appear that the
the HRA used this behavior to intimidate us. It
attend any public HRA or City of Fridley meeting
involves my property.
regarding our response
5onable discussion with
City of Fridley and
did not work. I will
of my choice that
As suggested in your extension letter, the insinuation to move forward
with the Gateway West Project without the inclusion of my property is
entirely the HRA's decision to make. I am happy with my property and I
will enjoy my new neighbors!
If you do intend to acquire my property, which is not on the market,
please refer to the minimum considerations as outlined in my previous
letter. If not, feel free to build around me.
Sincerely,
Kathleen Harvet
03/26/2005 11:06 9524484676 WILSON DEVELOPMENT PAGE 02
March 28, 2005
The following is a summary of conversations with Mrs. Harvet and her son, Gary. J
called them in response to a request from Paul Bolin.
3/24/05
Reached Mrs. Harvet around 5:30 p.m. Told her I was calling in response to their letter
dated 3/22/05. She again stated that she did not understand relocation benefits, etc.
Asked me to call her son, Gary. I said that I would do that but that the last two paragraphs
in her letter states that she still really does not want to move and much prefers to stay
where she is, was that correct? She said yes but that she would sell if she "gets her
price ". I asked what that was and she said $249,000. 1 told her that the final offer from
the City was $189,900 so it really would be a waste of my time and her son's time to
pursue this any further. She asked me to call him anyhow at his place of business, and
gave me his phone number. I tried that number, no answer, called Mrs. jlarvet back and
reported same and said I would try in the morning.
3/25/05
Called and spoke with Gary Harvet. Told hire of my conversation with his mother and
that if his understanding is also that she will not consider selling for $189,900 than there
really was no sense in continuing the conversation. Gary responded that he might see his
way to selling for the $189,900 but that he did not think that was the final offer. I told
him that number was not going to change, that the City Council and the HRA have made
the firm decision that they will not pay more as they thought it was a very favorable offer.
I asked him what he thought the house was worth and Gary said "about $160,000 ". I said
that if that was a good number than the replacement housing payment would be $29,900
which would be the difference between his number and the comparable house. He said
he understood that but still wanted to know where the relocation money was coming
from. I said that was explained in the letter from the City dated 3/4/05 as clearly as can
be as closing costs, whether they would do a self.- move /professional move was not yet
determined. He again started arguing that I was not answering the question. Asked him
if what he wanted to know where the City was getting the money from, and he said yes,
said he had to know that before he could accept the offer. Said he had stated this in the
letter, I read that paragraph to him. From his letter and he acknowledged that it was not
worded that way. Told him I had no clue where the dollars were coming from but would
ask the City. Also said that since his mother has been looking for a house for almost a
year but has not found anything she likes I doubted that she would find anything in the
few days that are left until 4/l/05. Gary said he wanted to pursue this anyhow and I said I
would get some listings to him. Asked him if it had to be a single family house, Gary
said would consider a townhouse /condo. Then asked if it had to be in Fridley, Gary said
no anywhere in the vicinity as long as it was within walking distance to a bus line and
grocery shopping. Said I would see what I could find and fax to him Monday.
03/28/2005 11:06 9524484676
�1
.J,
L ON
DEVELOPMENT SERVICES
March 28, 2005
TO: Gary Harvet Fax 763 - 323 -4090
Froze: Betty Grimm
Dear Mr. Harvet:
WILSON DEVELOPMENT PAGE 03
OFFir-E 952.448.4630
800.448.4630
FAX 952.448.4676
WILSONDEV510 @AOL.COM
510 CHESTNUT STREET,
SUITE 200
CHASKA, MINNESOTA 55318
In response to your request, I called the City of Fridley officials and inquired where the
money to purchase your mother's house and pay the relocation benefits is coming from.
The source of the money is a Community Development Block Grant from Anoka County
in the amount of $164,000.00. Any amount to be paid over that is tax dollars from the
residents of Fridley.
I searched. the Multiple Listing Service website this morning. I am faxing some of the
listings posted that may ft your criteria. I believe most of them are close to a bus line.
Several of the listings actually say that in the "Remarks" area. I called several listing
agents but frankly most of them were not in the office. I did write some notes on the
listings I am faxing to you froze. those agents I could reach this morning.
The first listing I ate faxing is located at 5612 W. Bavarian Pass in Fridley. I did speak to
the listing agent (name is Sharon Hansen). Ms. Hansen said this listing is sold but said
that she works the area exclusively and knows of other listings that are close to bus lines,
grocery shopping, etc. I do not know Ms. Hansen and I am not in any way referring or
recommending her but it might be worth a phone call. If you are already working with an
agent then I am sure that you are already aware of the listings meeting the criteria.
I can be reached at 952 -448 -4630 if you have any questions.
AGENDA ITEM
�F HRA MEETING OF APRIL 7 2005
FRIDLEY
Date: March 31, 2005
To: William Burns, HRA Executive Director
From: Paul Bolin, Asst. Executive HRA Director
Subject: Home & Garden Fair — Update
M -05 -27
INTRODUCTION
On March 5, 2005 the HRA and City co- sponsored the 7th Annual Home and
Garden Fair with the cities of Blaine, Mounds View, & New Brighton. This year's
show was held at the newly constructed Schwan Center in Blaine.
The 1,300 attendees set a new record and was nearly double the amount that
attended in 2004. Approximately 130 Fridley residents attended this years event.
The new location allowed for a total of 75 vendors and 3 seminars. The seminars
were well attended, well received, and very informative.
Though the 2005 show is just past, planning for the 2006 show has already
started. Now that we have held a successful show in this new location, minor
changes will be made to make the 2006 Home & Garden Fair the best yet!
H:\—Paul's DOCUments\HRA\HRA Agenda Items\2005\April 7, 2005\Apri17HRA(Home &GardenFairt Memo).doc
Fridley HRA
Housing Program Summary
Cover Page
April 7, 2005 HRA Meeting
Report Description
Loan Application Summary Loan application activity (e.g. mailed
out, in process, closed loans) for March
2005 and year -to -date.
Loan Origination Report
Loan Servicing Report
Remodeling Advisor &
Operation Insulation
Loan originations for March 2005 and
year -to -date.
Loan servicing by Community
Reinvestment Fund (CRF) for the month
of February 2005. 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\HRA Agenda Items\2005\April 7, 2005\Housing Program Cover Page (March2005).doc
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Loan Origination Report
March 2005
Loan / Grant Originations
- 0%
Kitchen remodel
- 0%
General plumbing
_ 0%
Heating system
This
Previous
- 0%
Basement finish
- 0%
Month
Months
YTD
Loans Issued
Misc. interior projects
2
1
3
Grants Issued
- 0%
-
-
-
2 67%
Total
2
1
3
Funding Sources
- 0%
Misc. exterior projects
- 0%
This
Previous
Month
Months
YTD
Fridley HRA
$
15,543
$ 16,600
$ 32,143
MHFA
$
-
$ -
$ -
Met Council
$
$ -
$ -
CDBG /HOME
$
-
$ -
$ -
CEE
$
-
$ -
$ -
Other
$
-
$ -
$ -
Total $
15,543
$ 16,600
$ 32,143
Types of Units Improved
This
Previous
Month
Months
YTD
Single Family
2
1
3
Duplex
-
Tri -Plex
-
4 to 9 Units
-
-
10 to 20 Units
-
-
20+ Units
-
-
-
Total
2
1
3
Types of Improvements
Interior # of Projects % of Total
Bathroom remodel
- 0%
Kitchen remodel
- 0%
General plumbing
_ 0%
Heating system
- 0%
Electrical system
- 0%
Basement finish
- 0%
Insulation
- 0%
Room addition
- 0%
Misc. interior projects
- 0%
Exterior
Siding /Fascia /Soffit
- 0%
Roofing
1 33%
Windows /Doors
2 67%
Garage
- 0%
Driveway /sidewalk
- 0%
Landscaping
- 0%
Misc. exterior projects
- 0%
Monthly Servicing Report
Principal Paid
Interest Paid
Total Payments Rec'd
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
February 2005 *
Pool
Pool
Pool
Deferred
Installment
Installment
Loans
Loans
Loans
-
1,583.54
4,533.79
-
624.00
2,226.02
-
2,580.89
6,625.69
31,500.66
180,931.94
606,032.00
7
17
50
Total
* February Information Received March 7, 2005
Delinquent
Loans
1.00 $
4.00 $
5.00 $
Delinquent
Payments
549.32 $
2,561.83 $
3,111.15 $
Pool 3
Deferred
Loans
13,355.92
3
Delinquent
Principal
25,159.76
16,717.04
41,876.80
Total
6,117.33
2,850.02
8,967.35
831,820.52
77
$ 435.00
$ 8,532.35
% of
Delinquent
Principal
0.00%
1.29%
5.19%
6.48%
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CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY
MARCH 4, 2005
CALL TO ORDER:
Commissioner Schnabel called the Housing and Redevelopment Authority meeting to
order at 7:30 p.m.
ROLL CALL:
Members Pesent: John Meyer
Virginia Schnabel
William Holm
Members Absent: Larry Commers
Pat Gabel
Others Present: Paul Bolin, Assistant HRA Director
Rick Pribyl, Finance Director
Scott Hickok, Community Development Director
David Harvet
Gary Harvet
Kathleen Harvet
APPROVAL OF MINUTES: February 3, 2005
The following corrections were requested:
Page 3 — Last sentence — change the word "considered" to "consider".
Page 5 - 3rd line from the top, the last 2 words "is authorized" should be deleted
because it's repetitive.
Page 4 — 5th paragraph — 2nd line "He explained the process is the offer is based"
remove the second "is ".
MOTION by Commissioner Holm, seconded by Commissioner Meyer, to approve the
minutes as amended.
UPON A VOICE VOTE, ALL VOTING AYE, COMMISSIONER SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
CONSENT AGENDA
• Consider claims and expense
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — March 4, 2005 Page 2 of 9
MOTION by Commissioner Holm, seconded by Commissioner Meyer, to approve the
consent agenda as presented.
UPON A VOICE VOTE, ALL VOTING AYE, COMMISSIONER SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
ACTION:
Mr. Bolin explained that the HRH's legal counsel has advised that the discussion on the
action items for Gateway West on tonight's agenda be discussed in an executive
session because the HRA is in negotiations on those items.
MOTION by Commissioner Holm, seconded by Commissioner Meyer, to remove the
Gateway West action items from tonight's agenda and discuss them during an
executive session.
Commissioner Holm stated the Harvets are present regarding one of the Gateway West
items.
Commissioner Schnabel explained that because the HRA will be discussing pending
negotiations and pricing it would be better to do so during an executive session rather
than a public forum.
Commissioner Meyer asked if the Harvet's could make any comments they may have at
this time prior to the executive session.
HRA Attorney Gay Greiter stated that would be fine.
Gary Harvet asked if there is a timeline on the executive session and how soon the
HRA will be prepared to discuss this publicly.
Mr. Bolin explained the executive session will be taped and any decisions will be made
announced in a public meeting.
UPON A VOICE VOTE, ALL VOTING AYE, COMMISSIONER SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
Target NOC — SE Quad Parking Study RFP's
Mr. Bolin stated this is a proposal to do a parking study in the southeast quadrant which
consists of the Target Northern Operations Center, the Fridley Municipal Center, the
Fridley Plaza building to the south of City Hall and the Columbia Park Medical Group
building to the south. Since the HRA discussed the possibility last summer of selling the
Target Northern Operations Center parking lot, there's been continued interest by
potential buyers of that property to own and control that parking lot. There is a
development agreement from 1984 between the HRA and Target that gives the HRA
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — March 4, 2005 Page 3 of 9
the right to construct a ramp on that property through the year 2014 at which time
Target would then be obligated to purchase that lot. The possibility of a parking ramp
on that site has caused concern for potential buyers of that lot. Last summer a credit
union expressed an interest in this site and proposed constructing a stand -alone drive -
through in the middle of the parking lot which would have eliminated the HRA's ability to
construct a parking ramp without removing that building. Before agreeing to give up the
right to constructing a parking ramp, the HRA should know what the future parking
demands would be for the area. Last November, a cursory study of the entire quadrant
was done and it showed that we were approximately 100 parking stall short. Because
this study simply looked at existing parking needs, staff thought it would be necessary
before a final decision is made to do a proper parking study of the entire area.
Mr. Bolin explained that staff sent out requests for proposals to six different firms that
specialize in parking studies and received three good proposals. The costs range from
$7,600 to about $13,000. Staff recommends that the HRA authorize staff to enter into a
contract with Bonestroo, Rosene, Anderlik & Associates (BRA) to allow them to move
forward with the traffic study at a cost not to exceed $7,680. The City has a long history
with BRA and the city engineering staff is familiar with their work and has always been
very pleased. The team that BRA has put together in partnering with Traffic Data, Inc.
gives them the experience and project depth to give the city a top quality product. The
study will answer the questions necessary for the HRA to decide about future parking
demands and whether or not a parking ramp on the Target site or elsewhere on the
quadrant is advisable. Once that question is answered, the HRA can give Target an
answer that will make their negotiations with potential buyers much easier.
Commissioner Schnabel asked if there has been any discussion about who the users
are of the 100 parking stalls we are currently short.
Mr. Bolin responded that the question Ms. Schnabel is asking is something that the
staffs cursory study missed. The 100 stall shortage they identified was based on the
way the buildings are used with regards to what would be required by the zoning code
for parking. What this proposed study by BRA will do is break down each of the four
buildings in the quadrant by current users and potential users.
Commissioner Schnabel asked the potential of putting a ramp on another piece of
property, such as the Fridley Professional Building or the Columbia Park Medical
building site.
Mr. Bolin responded that is a possibility. He referred to a file he and Mr. Hickok had
recently reviewed regarding the consideration in 1985 for a parking ramp on the
Columbia Park Medical property; one on the east side of the building and one on the
west side. There weren't any minutes as to why this proposal did not move forward.
The proposed ramps would have had 110 parking stalls on each level and would have
doubled the parking. The HRA owns the western most 135 feet of Columbia Park's
parking lot which leaves close to 150 feet of parking lot which Columbia Park owns itself
so it would have to be a joint venture between the two to make a ramp happen. They've
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — March 4, 2005 Page 4 of 9
also looked into the possibility of adding a level to the existing parking ramp at City Hall.
The engineering staff is looking through some of the old records to determine if it is
possible to add another level, but their initial reaction was that it probably is not
possible.
Commissioner Schnabel commented that if a majority of the cars are going to the other
buildings, it would probably not be practical to add to the municipal parking ramp.
Mr. Bolin stated these are all issues that BRA would look at as a part of their study.
MOTION by Commissioner Meyer, seconded by Commissioner Holm, to grant this
contract to BRA.
UPON A VOICE VOTE, ALL VOTING AYE, COMMISSIONER SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
INFORMATION ITEMS:
Update on CDBG
Mr. Bolin reported that the Community Development Block Grant application was
submitted to Anoka County on January 12th in the amount of $167,600 to aid in the
Gateway West acquisitions. Over the past month the Anoka County staff recommended
that Fridley be awarded $164,889. This award is subject to approval by the Anoka
County Board at their April 26th meeting. Fridley came out rather well considering there
were 17 applications seeking $1.9 million with only $968,000 available to distribute.
Monthly Housing Report
Mr. Bolin explained that the City Manager wrote a very nice article in the upcoming
newsletter promoting all the City's loan programs and the Operation Insulation and
Remodeling Advisor Services as well which should generate quite a few calls. In
February, he explained there were 3 applications sent out with none received back.
Year -to -date 5 applications have been sent out, 1 has been processed and 1 loan has
closed. The year -to -date total loaned out is $23,162. The types of improvements these
loans funded include roofing and windows and doors. There is approximately $3,000 in
delinquent loans at this time. The Operation Insulation program visited 4 different
homes in February. The Remodeling Advisor will be at the Home and Garden Show on
March 5th
Home and Garden Fair Reminder
Mr. Bolin reviewed the details of the upcoming Home and Garden Fair scheduled for
March 5, at the Schwann Center from 9:00 a.m. to 2:00 p.m.
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — March 4, 2005 Page 5 of 9
Commissioner Meyer repeated his concern that the loan programs, operation insulation
and remodeling advisory programs are not being well utilized by Fridley residents.
Mr. Bolin stated at the January meeting he presented a graph comparing Fridley's
program participation to other cities and based on information from the Center for
Energy and Environment Fridley loans out more money and more loans than any other
city than Coon Rapids. He believes that once interest rates begin creeping up in the
private market, there will be more interest in the City's program. In 2004, there were 16
loans processed through the revolving loan fund which is up significantly from the 4
loans processed in 2003.
Commissioner Schnabel commented that the HRA has discussed the possibility of
doing a targeted mailing to older areas of the city with information about the home
improvement and loan programs the City offers.
Mr. Bolin stated that the city has the ability with the Geographic Information System to
select properties based on age.
ADJOURNMENT:
MOTION by Commissioner Holm, seconded by Commissioner Meyer, to adjourn.
UPON A VOICE VOTE, ALL VOTING AYE, COMMISSIONER SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
The HRA then went into an executive session to discuss Gateway West Harvet and
Hogenson property acquisition negotiations.
Respectfully submitted by,
Rebecca Brazys
Recording Secretary
NOTE: During the executive session, the following items were discussed which did not
involve Gateway West property purchases and are included herein for the record.
Columbia Arena
Mr. Hickok stated City Staff has spoken with Paul Erickson, the executive director of the
Minnesota Amateur Sports Commission. He has indicated that Columbia Arena's two
sheets of ice are in rough condition and after an analysis they concluded that it would
require a $2 million investment to keep the facility viable. After further analysis, the
Commission has decided that if they are going to make that much of an investment,
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — March 4, 2005 Page 6 of 9
they would prefer to create two new rinks at the super rink in Blaine. In the spirit of
cooperation with the City, they have asked the City to talk about what the City would like
to see at this site. They would like to keep the building if someone would come forward
with the money. They are also open to other options including redeveloping the
property themselves, sell the property to a private developer, or sell the property to the
City. During the City Staff's discussions with the Minnesota Amateur Sports
Commission, the following possible uses of this property included a community activities
site, conference center, heavy industrial site, a light industrial site, a hotel conference
center, community pool / water slide, fire station, a public works facility, a new City Hall
complex, condos or apartments. The land surrounding it, including the soccer field
complex, there would be a total of about 36 acres. They discussed moving the public
works facility to the Columbia Arena facility, creating a newer and larger facility, and
then redevelop the area behind as residential. The suggestion to create a new City Hall
complex included a community center facility, a possible link to a fitness facility.
Another suggestion was to move the softball fields across University to the Columbia
Arena property (because of drainage problem on the fields) then building a new single
family development on the community park site. They also talked about possibilities
should the property be sold to a private developer. If that occurs, a rezoning would be
required. The public is currently public, owned by Anoka County, in a P zoning district.
In the event that it doesn't remain a public property, it would go back to what the zoning
was prior to it being public, which was heavy industrial. Heavy industrial would then be
the designation for the site and it could be developed as heavy industrial or it could be
rezoned for redevelopment under the F -2 zoning. The City would need to relocate the
park property, relocating soccer fields, redesigning the park and possibly creating a
neighborhood park. Or possibly pursue parking on the Columbia Arena site for the
soccer fields. Another part of the discussion centered on rezoning for high density
housing and what would happen on this site, possibly including a mix of housing and
retail such as a liquor store.
Mr. Hickok further explained that with single family housing, 48 units is all that would fit
on the site with 9,000 square foot lots. Or another option would be to let the developer
figure out what the market is and let him propose a zoning change and avoid contact
with the City until they come back before the Commission with a proposal.
Mr. Hickok stated another issue is whether or not the HRA would be willing to set up a
TIF district for the F -2 option. Staff has not yet consulted with the HRA attorney
whether a TIF district is possible on a property that was public. Another possible use for
the site would be. a professional office park, such as Columbia Park developing this as
their new medical site.
Mr. Hickok stated that staff is not requesting any action by the HRA at this time but is
simply looking for feedback. A two to four year timeframe is anticipated for completion
of the new ice sheets in Blaine.
Commissioner Holm asked what the price tag is for the property.
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — March 4, 2005 Page 7 of 9
Mr. Hickok responded they don't know what the value of the property is at this point in
time. They know what they'd have to put into the facility to make it functional and that it
will cost between $10 to $12 million for the two new sheets of ice in Blaine. They plan
to use the proceeds from the sale of the Columbia Arena property for the new ice. Staff
encouraged the Minnesota Amateur Sports Commission to meet with the organizations
and schools that currently use Columbia Arena and with the surrounding neighbors so
they are informed before they begin hearing rumors. They hope to offer the current
Columbia Arena users the same amount of ice time at the new facility.
Commissioner Meyer questioned how they hope to raise $10 to $12 million for new ice
when they can't come up with the $2 million to improve Columbia Arena.
Mr. Hickok stated if the HRA is interested in pursuing this matter, the staff can begin to
pin down specific information such as what the value of the land would be.
Commissioner Holm expressed his opinion that the Columbia Arena property would be
a good location for residential development, with possibly condominiums or town homes
along University Avenue and single family homes to the east around the creek.
Commissioner Meyer pointed out that in 1966, there was some discussion about
utilizing the Columbia Arena property for a new city hall location but that was not
successful.
Mr. Hickok stated that the new city hall suggestion was just part of their brainstorming
session with the thought of having all city government facilities on one campus.
Commissioner Meyer commented that as far as the suggestion for an office building
site, the former Target Operations building just north of City Hall has been empty for a
while.
Commissioner Holm expressed his opinion that the expanded community center with a
fitness center probably would not fly very well in today's tax environment and there are
two large fitness centers in the City.
190 and 191 Island Park Drive
Mr. Bolin stated this past week it came to the City Manager's attention that 190 and 191
Island Park Drive which are both 12 unit apartment buildings and are coming up for
sale. That area does have blighted apartment units and a number of the units are
vacant at this time. There is also a rumor that three similar buildings on Charles Street
will soon be for sale. The City Manager met with a number of staff people yesterday to
discuss this area and the possibilities for these properties. They also discussed what
the public purpose for acquiring these properties would be and the major reason would
be to eradicate crime. Because of the location and layout of this area the police
department has had many problems including stolen vehicles found in the area.
Another public purpose for purchasing this property would be to increase the tax base
over the aged buildings that are there now, improve the housing stock in the area,
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — March 4, 2005 Page 8 of 9
eliminate safety and health problems, capitalize on the location close to the North Star
rail site. It's also located near the river and has convenient freeway access. Another
purpose would be to establish a toe -hold in this area for future redevelopment and
improvements. Some suggestions as to what could be done with these properties
include letting the private market run its course; rehab the property with the HRA getting
involved in managing the buildings; tear down and build new; sell the property to a
private developer; work on purchasing all the properties in this neighborhood as they
become available; aggressively pursue the purchase of all the units in this area and use
bonds to cover the costs of doing so. Staff came to the consensus that it would be a
good idea to purchase 190 and 191 Island Park Drive to get the toe -hold in this area so
the City can get more work done down the road. They also determined that the City
should investigate purchasing other properties in the area and then tear the buildings
down and eventually work with a developer to create a mixed use, mixed income, mixed
occupancy project. A project that would include some retail as well as residential
aspects and a mix of market rate, owner - occupied and subsidized rental would be a
good mix and to replace the affordable units that would be lost by demolition of the
existing buildings. They also brainstormed on why the City should do this project. Right
now, interest rates on bonds are very favorable. Also there is an opinion that the return
on land would be more than keeping the money in the bank at this point. Right now 190
and 191 have very high vacancies so there would be very low relocation costs. Only 3
of the units are rented at this time. In addition there is Met Council money available
now for mixed income and transit oriented projects so the City may get some assistance
in acquiring the properties. This project would also be an image enhancer for the City.
It would also open up the river and there currently isn't a lot of access to the river in
Fridley.
Mr. Bolin explained that staff and Dr. Burns thought it would be best to bring this matter
to the HRA's attention to request permission to explore the potential purchase of some
of the properties in the Island Park Drive area. Staff would not enter into any
agreements but would like the HRA's permission to investigate what the costs would be
associated with this property; what the sale prices would be for some of these
properties; find out if there is interest by the owners to sell some of the properties;
identify relocation costs and discussing with Anoka County the possibility of working
with them on improvements on the park in the area. Dr. Burns will also present this
matter to the City Council at their next meeting and ask for their input.
Commissioner Holm stated it is his understanding that the purchase price of these
buildings is about $700,000 each. Also, these two buildings are somewhat removed
from East River Road. If the HRA is interested in pursuing this, they'll probably be
looking at purchasing as many as six buildings in that area for a redevelopment project.
Commissioner Meyer agreed that there could be as many as six buildings or more
involved and questioned the wisdom of investing heavily.
Mr. Hickok stated the best looking units are on the East River Road side of this
complex. Staff would give the two buildings closest to East River Road a B rating which
HOUSING AND REDEVELOPMENT AUTHORITY MEETING — March 4, 2005 Page 9 of 9
isn't bad considering that 190 and 191 Island Park Drive would be D or F rated. One of
the reasons Islands Peace Park in that area isn't frequently used is because some
residents consider it to be a dangerous neighborhood. Also in that neighborhood there
are code enforcement problems all the time and frequent police calls.
Commissioner Schnabel stated she would like to see the HRA purchase all this
property, clear it all out and then build nice condominiums and town homes. But she is
concerned about where the money is going to come from and once the HRA attains
these properties, will the HRA have to become the landlord and deal with all the
problems. She did ask Mr. Bolin to proceed with exploring this matter further.
Gay Grieter, HRA attorney, offered to prepare a brief analysis of the kinds of revenues
the HRA would be looking at if they want to create a TIF district for this property. She
added that some of the problems incurred by other cities that tore down dilapidated,
fairly close buildings like this and put up nice condos or town homes is that the
relocation costs "eat you alive ". To the extent that the HRA can afford to purchase
these properties as they come up for sale when occupancy rates are low, that would
save those relocation costs. However, to the extent that not all of the existing properties
are in terrible condition that keeps the assessed value base deducted from your
renewed taxes to keep your tax increment, that ends up being pretty high which can eat
into the tax increment and reduce revenues. It would probably be worthwhile before
staff goes much further on this matter to consider what the HRA hopes to build on that
site, what they can sell it for and what the costs would be. If there's a significant gap,
the HRA can then determine whether or not to proceed.
MOTION by Commissioner Holm, seconded by Commissioner Meyer, to adjourn.
UPON A VOICE VOTE, ALL VOTING AYE, COMMISSIONER SCHNABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
ubmitted
ecca Brazys
Recording Secretary