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HRA 11/03/2005 - 6204gJI "" C PL , CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING Thursday, November 3, 2005, 7:30 P.M. AGENDA LOCATION: Council Chambers (upper level) CALL TO ORDER: ROLL CALL: APPROVAL OF MINUTES: October 6, 2005, and Special Meeting of October 18, 2005 CONSENT AGENDA: Consider Claims & Expenses ................... ........................................... ..............................1 ACTION: Review and Approval of Draft Budget for 2006 ....................................... ..............................2 Terms Agreement with Blue Print Homes .............................................. ..............................3 Approval of Contract for Administrative Support for 2006 Home & Garden Show .........................4 Approve 2006 HRA Commission meeting dates ..................................... ..............................5 INFORMATION ITEMS: Islandsof Peace Update .......................... ......................................... ..............................6 MonthlyHousing Report ..... ............................... ................................. ..............................7 ADJOURNMENT: CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION OCTOBER 6, 2005 CALL TO ORDER Chairperson Commers called the Housing and Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL Members Present: Larry Commers Virginia Schnabel Pat Gabel William Holm William Burns John Meyer Others Present: Paul Bolin, Assistant HRA Director Scott Hickok, Community Development Director Gay Cerney, HRA Counsel Paul Eisenmenger Richard Pribyl APPROVE PLANNING COMMISSION MEETING MINUTES - September 1, 2005 MOTION by Commissioner Holm, seconded by Commissioner Schnabel, to approve the minutes as presented. UPON A UNANIMOUS VOICE VOTE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. CONSENT AGENDA: Consider Claims and Expenses MOTION by Commissioner Gabel, seconded by Commissioner Meyer, to approve the consent agenda. UPON UNANIMOUS VOICE VOTE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. ACTION: Approve Addition to Veit Contract Mr. Bolin reviewed approval from the September 1, 2005 meeting where HRA awarded demolition contract to Veit Companies for an amount not to exceed $89,628. Veit began the pre - demolition asbestos and hazardous materials removal on September 16th and found additional asbestos in the ceiling (vermiculite) of the property located at 271 57th Place. The removal of this additional asbestos has added $6,490 to the contracted amount. The storm on September 21st knocked down a number of large trees and branches on the Gateway West properties. Staff has asked Veit to remove these trees and branches. This is another additional cost of $1,700. Staff recommends HRA formally approve the additions to the Gateway West demolition contract with Veit companies. MOTION by Commissioner Holm, seconded by Commissioner Schnabel to approve the additions to the Gateway West demolition contract with Veit companies. HRAMeetingOctober62005 Page 2 of 9 UPON UNANIMOUS VOICE VOTE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED • Approve Terms Agreement with Blue Print Homes Mr. Bolin reviewed the approval from last month where HRA approved staff to begin work on drafting a development agreement between Blue Print Homes and the HRA for the Gateway West project. Legal counsel and staff drafted a development agreement and provided a copy to Blue Print Homes for their review. Blue Print Homes requested some changes to the contract, specifically upgrading the utilities, landscaping allowances and the structuring of the $700,000 land payment. Blue Print Homes has requested that they be allowed to purchase 2 -3 lots initially for model home construction and then the remaining lots would be purchased as buyers become interested in the builders homes. The HRA's legal counsel made this change and a new copy has been given to Blue Print Homes. Staff recommends that the HRA approve and sign the development terms agreement. This agreement will serve as the foundation for the development agreement to be brought forward at the HRA's November meeting. Chairperson Commers questioned the change that was made regarding the builder asking to pay for the land in installments and how the process will work. Ms. Cerney noted that the specific information was on page 4 of the new contract. Blue Print Homes would pay for the first three lots and three months later they would purchase another two lots. An installment of two lots every quarter will continue until all the land is developed. Chairperson Commers questioned if any lots were more prime than others and if this should be a concern as the land is developed. Mr. Bolin stated that the developer will have a difficult decision deciding where to start as all the lots have equal value. The south block has many mature trees but the utilities lines have not been installed and the north lot has utilities and is ready for construction. At this point Mr. Bolin does not see this as a concern but the builder may prefer to start building where the utilities are already installed. Commissioner Meyer asked for clarification of the purpose of the terms and agreement and if it was just a preliminary agreement before the final agreement is completed. Mr. Bolin clarified that the preliminary agreement is created to get the issues from both sides on paper before the final agreement is developed. By gathering all the information for a preliminary agreement HRA can make sure that all their issues are included so the final agreement will be agreeable by everyone. A preliminary agreement has been presented in previous projects and is a simple summary of the final agreement. Commissioner Meyer wanted to make sure that if HRA signed the preliminary agreement that it would not prejudice HRA from the final document if changes needed to be made between the preliminary and final agreement. Ms. Cerney confirmed that this preliminary agreement is not a legal binding document but a draft created to guide us to come to terms on the final document. Creating a Terms and Agreement document is a two step process and once the preliminary agreement is approved, 90 -95% of the document is complete. Commissioner Meyer questioned if the developer will only buy 2 -3 lots in the beginning of the process what is the legal status of the balance of the lots. Initially the developer was going to purchase all of the lots upfront. Ms. Cerney commented that this is not a typical process for a developer. Currently the developer is unable to finance all of the property upfront. There are some choices HRA has to offer the developer. Currently the document is set up to sell the land to the developer in installments. The developer would Page 3 of 9 HRAMeetingOctober62005 buy three lots upfront and purchase a minimum of two lots quarterly until the land is developed. The alternative would be to deed the developer the entire property at once and pay in installments through the right of reverter. The developer is required to build on the property and it would be recorded in the deed against the properties and HRA could take the property back if the developer did not meet the terms as stated in the contract. Commissioner Meyer stated that HRA has a vested interest to see all the property developed by the same contractor. He questioned if Blue Print Homes has the finances to complete this project if they cannot purchase all the land as originally agreed upon. He shared concerns what would the status of Gateway West be if the developer was not able to complete the project and HRA had to hire a different developer to complete the project. Ms. Cerney commented that staff has done a lot of research on Blue Print Homes and were very impressed with the projects they have reviewed. Gateway West is a smaller project than the projects staff has researched and in the past Blue Print Homes has not experienced any financial problems. This does not mean that the Gateway West project will be an easy financial task for the developer, but history confirms that Blue Print Homes has not had any financial difficulties completing projects. If HRA is concerned about Blue Print Homes not completing the development, the land may be able to be purchased up front from the developer via a security deposit such as a letter of credit. Commissioner Commers questioned the purpose of the reverter provision. Ms. Cerney clarified that a reverter concept is offered on a limited basis. The developer would apply for two or three lots at a time and we can take back lots if they do not build as contracted. Mr. Bolin commented that the reason for structuring payments as defined in the preliminary agreement is that it is good business for the builder not to extend themselves so far financially. HRA has already owned this land for 10+ years and we are seeing no return on our investment. By selling the builder three lots, we will soon have three nice homes available for sale. Mr. Bolin is very optimistic that people will see Blue Print model homes and want to build on Gateway West. We may even see a point where the builder will buy more than two lots per quarter. Mr. Hickcok stated that Blue Print Homes is also very optimistic about the Gateway West project and that we may be on the conservative side with this project. This builder has experience in this market and is confident the lots will sell. Commissioner Commers shared several concerns regarding this property and the homes to be developed. If HRA sells a few lots at a time, which ones will be sold first? If the builder defaults on the payments would the land be platted out? If the developer defaulted on the contract would we have a problem finding a qualified developer to build similar homes? Mr. Hickcok commented to the extent that we are letting out pieces of our property but the information we know about the builder and the property is that the land would be platted out and is for single family homes. The quality of the homes will be great and if the entire development does not sell or the developer backs out, we have qualified staff to find a developer to complete the project. Commissioner Holm questioned when the plat would be complete. The land is valued at $700,000 but we don't know if it will be divided into 14, 15 or 16 lots. Mr. Bolin stated that currently it looks like the development will be divided into 16 lots. By the end of November we should have the final drawing. Mr. Burns questioned if earnest money or a letter of credit would be acceptable with the builder. If the developer only owns the first three lots, doesn't the builder have to have site control in order to initiate the plat agreement and who would control the sale of future lots? Mr. Bolin stated that HRA is the initiator of the plat and the developer would pay for the plat drawing. HRAMeetingOctober62005 Page 4 of 9 Commissioner Holm questioned how many lots are on the north side verses the south sides. Mr. Bolin stated that there are seven lots on the north side and 9 lots on the south end. Commissioner Gabel recommended that the first three lots purchased should be together in continuous order. Commissioner Schnabel asked if we have seen any plat proposal for the 16 sites and what the width of the lots will be. Mr. Bolin stated a few years back a preliminary drawing was completed and Kurth Surveying said there would be enough room for 16 lots. The width of the lots will range from 61 to 80 feet with most of the lots in the 61 to 65 feet width. The Hyde Park area allows a 60 foot wide lot. If a private developer owned the land, this would be allowed but being HRA owns the land we would need HRA approval to continue with this plat drawing. Commissioner Schnabel agreed with Commissioner Gable on selling lots in continuous order and also agrees that a letter of credit should be brought forth. Commissioner Gabel agreed that this development would improve the neighborhood but shared concerns regarding the variance of the lot sizes with some lots being 60' and others 80'. Also, originally the lots were going to sell for $50,000 a lot. If the development is divided into 16 lots, the value of the land is $800,000 verses $700,000. What will happen to the difference? Mr. Bolin clarified that the original bid of $50,000 per lot was an estimate staff applied to each lot. The more staff looked at the value per lot; a developer could come in with a four lot plat and develop the area for $200,000. Since then staff has decided to value the land at $700,000 to avoid any such misunderstanding. Blue Print Homes will pay per lot but if the plat drawing is for 16 lots the value of each lot would be 16 divided by the $700,000. Mr. Hickcok stated that from the first negotiations with Blue Print Homes, the value of the land has been based on $700,000. Commissioner Commers asked for clarification on the budget and where we stand for public improvements. Mr. Hickcok referred to the budget sheet included in the packets. Some numbers included $300,000 for site improvements, $100,000 utilities and $100,000 for streets and sidewalks. Mr. Bolin stated that some of the actual figures should come in under budget Commissioner Commers asked if we could see the budget verses the actual numbers for this project at the next meeting. Commissioner Meyer shared concerns that HRA will not be able to review the plat agreements prior to the final agreement. Mr. Bolin shared a rough draft he received last week with the HRA to alleviate any concerns. The lots will vary in size throughout the development. He also shared examples of 60' lot homes and explained that this neighborhood will be very complimentary and offer a variety of unique homes. The builder does not build the same home twice and expects to sell the homes between $250,000 and $300,000. Commissioner Gabel shared concerns that a 60' lot would be real close together and maybe the development would be better based on 14 lots verses 16 lots. Mr. Hickcok stated that it is important to remember that this is a premier developer and it should inspire other development or improvement in existing homes. This should enhance the neighborhood and it is a positive aspect that the developer can build a quality home on 60' lots. It will inspire others that HRA is Page 5 of 9 HRAMeetingOctober62005 using existing land to create a new pattern or theme in a neighborhood. It should reflect that we are interested in a diverse housing stock. He stated that the builder is looking forward to meeting the HRA council. Blue Print Homes is a very experienced builder and knows the market. Commissioner Commers suggested that the developer come in and we hold a special meeting to answer the questions and concerns of the HRA council. This meeting could provide some comfort and clarification to the HRA council. Mr. Hickcok stated that as the developer looks at this project, they have numbers to meet as well. He supported the idea to hold an additional meeting to review the plat drawing and address any comments and concerns to the builder. This should not slow down the process. Commissioner Commers asked if we should have a list of questions to give the developer so he can have time to prepare for the meeting. Commissioner Holm commented that he did not see the risk involved in how the financial structure is set up. As the agreement reads, the developer is obligated to pay HRA a minimum of two lots per quarter. If the builder defaults on the contract and has no substantial assets, we could be in trouble, but that is not the likelihood. Regarding the 60' lots, there are a lot of developments in the inner -city that build on 50' lots and the homes are very attractive. A final comment is regarding the decorative fence that is required along University Avenue. What is the length of the fence, where will it go etc? Commissioner Commers appreciated all the comments and asked that a special meeting be held to have the builder come in to discuss these concerns. Commissioner Meyer asked if the developer has done any soil testing or have we completed this already, and had several other concerns. He said the current preliminary agreement is too vague and needs to be more specific. He suggested that the final agreement require more construction specifications so we have a better idea of what the potential home owner will be getting for their investment. Mr. Bolin stated that soil testing has not been done at this site. Commissioner Burns questioned if we needed to approve the preliminary terms and agreement contract that was up for action. He considered the preliminary agreement tool to help shape the final agreement. He said the concerns that have been addressed are not about what was in the contract, but more about what was missing. If we signed the agreement, it would not conflict with the ideals for the project. Mr. Bolin said we could postpone the action plan to approve the preliminary terms and agreement. Ms. Cerney clarified that the point of the preliminary term sheet is before a lot of time and money is invested in the final agreement, issues can be addressed. At this point it would be helpful to put this off another month and plan a special meeting so we can start on a definitive agreement. If the HRA met bi- weekly rather than monthly it would be easier to work out the concerns. Commissioner Holm asked to schedule a meeting in two weeks to resolve these issues. The developer would be asked to participate in this special meeting. Commissioner Commers stated that at this meeting we would discuss the method of payment, review the size of the plat, decorative fence, and quality of construction, zone site improvements and clarity any other issues that have been discussed. HRA wants this project to be successful and done properly. Mr. Bolin will ask the developer to come in on Tuesday October 18th at 7:00 p.m. to discuss the issues of the HRA council. MOTION by Commissioner Schnabel, seconded by Commissioner Meyer to table the Terms Agreement with Blue Print Homes until the October 18th Meeting. HRAMeetingOctober62005 Page 6 of 9 UPON A UNANIMOUS VOICE VOTE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. • Approve Purchase of Parking Permits and Signage for City Hall Parking Ramp Mr. Bolin stated that this past spring the engineering firm of Bonestroo, Rosene, and Anderlik (BRA) was hired to conduct future parking needs analysis for the SE quadrant of Mississippi and University Avenue. BRA conducted a number of parking counts over a number of different days to identify peak demand times and locations. The study showed that the parking problem was only a perceived problem as parking stalls are always available in the lower level of the ramp. It is suggested that it is not a parking problem but a management problem. The recommended course of action is as follows: • Sign every stall in the lower level- "Employee Parking Only - Permit Required" • Sign northern -most row of upper level- "City Hall Visitor Parking Only 7:30 - 5:00 a.m. • City Manager to instruct all employees to park in lower level of the ramp HRA, as owners of the lot, will need to pay for the signs and parking permits. The anticipated cost of the signs and parking permits are estimated at $1,500. Natalie Pfeffer, property manager for the Fridley Plaza Clinic Building, agrees that this solution would be beneficial to the tenants and visitors to her building. Additionally, two lower level parking stalls would be designated for use by Columbia Park for overnight parking of their two mail delivery pickups that have parked in the lower level for a number of years. Staff requests that HRA approve a motion authorizing staff to order the necessary signage and parking permits, pending approval of the City Council to proceed with signing the parking lot. Commissioner Commers questioned how much office building parking space is used by the clinic. Currently it appears that the increased office space has created additional parking problems. Mr. Bolin replied that this will free up additional parking spaces. In the last two years complaints have decreased and people are parking in other areas. Commissioner Schnabel asked to suggest CPMG employees parking in specific areas to free up parking for our customers. Mr. Bolin noted that this was discussed but CPMG currently pays HRA $800 a month to park in our ramp. Commissioner Meyer asked for clarification on who would pay for the permits each year. Mr. Bolin stated that he did not anticipate renewing the parking permits annually. This would be a one time charge and the permit would be something to hang from the employee rearview mirror. The cost for all the signs and permits would be approximately $1,500. HRA would be responsible to pay for these signs and permits. MOTION by Commissioner Holms, seconded by Commissioner Gabel to purchase parking permits and signage for City Hall parking ramp. UPON A UNANIMOUS VOICE VOTE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. • Columbia Park Parking Lot Reconstruction Assistance Request Mr. Bolin stated that Columbia Park Medical Group (CPMG) requested that HRA provide them with $166,000 towards their parking lot project. CPMG asked HRA to reply back by October 3, 2005 and whether or not HRA participated CPMG would continue with the construction. Staff recommends that HRA formally deny CPMG's request for financial participation in their parking lot reconstruction project. Staff further recommends that the HRA authorize staff to explore the possibility of selling the HRA's portion of the parking lot to CPMG for a fair price, and without impacting the City's ability HRAMeetingOctober62005 to park in the lot when necessary. Page 7 of 9 Commissioner Commers had some questions regarding of how much CPMG has increased the capacity of the building tenants. They have added several services to the building but have not increased the parking lot size. Mr. Pribyl stated that with the capital improvements that have been completed it was related to the office building and not the CMPG. HRA is not involved with this situation. Commissioner Commers -asked if any others objected to exploring the possibility of selling HRH's share of the parking lot. Commissioner Holm did not have a problem in selling the property but did not think it was necessary to complicate the issue by retaining parking rights for City of Fridley employees. Commissioner Burns shared concerns of the future parking needs in the area with Target Operation Center operating in a much higher density. We do not know today the impact this will have in the area. A traffic study stated parking will be sufficient, but he suggests waiting to sell the property until we have a feel for how this transition will impact us. Commissioner Commers agreed that we should be in no rush or time frame to sell this property. This would be something to consider in the future. Currently there is no developing happening in the area and we can hold off on selling the property for now. Currently how many parking spaces do we need on a daily basis? Mr. Bolin inquired that there are 166 lower level parking spots available in the lower level. There is usually plenty to spare. MOTION by Commissioner Schnabel, seconded by Commissioner Meyer to formally deny CPMG's request for financial participation in their parking lot reconstruction project. INFORMATION ITEMS Islands of Peace Update Mr. Bolin stated that staff is working with Bancor Group to create a final version of the letter of undertaking. This is a preliminary agreement to allow staff to compile more information to create a final version. Last month HRA authorized staff to make an offer to purchase the property at 6000 East River Road. The property owner has a failed septic system and had approached the City about an interest in purchasing the property. Staff worked with Wilson Development to draft the purchase agreement and relocation benefits. The offer was verbally accepted for the Appraised value of $235,000 plus $4,900 in relocation benefits. We are waiting to get signed purchase agreement returned. A blight analysis will be complete once the signed purchase agreement is returned. Staff will be asking that the HRA and Council approve a blight resolution that will allow the home to be demolished shortly after to avoid the ongoing costs that would arise from vandals, looters and trespassers. Commissioner Schnabel asked if the property is currently occupied by one of the owners. Mr. Bolin stated that it is currently occupied and they are looking forward to moving. He also mentioned that on Tuesday a 12 unit building at 151 Island Park Drive was listed for sale for $789,000. This building would fall in the Islands of Peace project and asked if any action should be taken place on this property. HRAMeetingOctober62005 Page 8 of 9 Commissioner Burns asked what Mr. Bolin would recommend regarding the property at 151 Island Park Drive. Mr. Bolin suggested notifying the developer that the property is for sale but currently the timing is not right to purchase the property. Commissioner Commers asked how the light rail station will tie into the Island of Peace project. Mr. Bolin stated that the task it is to determine if there is any way to connect the two projects. If they could be connected the Island of Peace Project could be eligible for additional transportation grants and funds. Currently this is not defined but they are looking for ways to link the sites to make it more attractive for the grants. Commissioner Commers asked if the area around the rail property has been purchased by anyone yet. Mr. Hickcok commented that negotiations are ongoing. A manufacturer is interested in purchasing some of the property and the County HRA may be interested in buying some of the area. • Northstar Rail Corridor Update Mr. Hickcok reviewed the drawing of the Northstar Rail Corridor. He discussed the two components of the projects discussions. One is the "third rail' line that is needed to meet the growth expectations and the other is the discussion of who will own the land surrounding the East Station Site. It is believed that the County will purchase the east and west station sites and the rail authority will reimburse the County for those portions that are required to accommodate the commuter rail and its associated activities. The Rail Authority will purchase the station sties and a blended combination of options one and two along with the City HRA purchasing the portion of the east station site that would be suitable for transit oriented development /residential. As mentioned earlier, no action is required of the HRA at this time. A discussion to evaluate the level of HRA interest in participating in this development would be helpful so that staff can further discuss with Northstar representatives and in the future draw some conclusions about ownership and who will take the lead in the transit oriented development. Commissioner Schnabel questioned if a buffer will be built for existing houses so they would not see the rail corridor. Mr. Hickcok stated that the cost of the land is expensive for landscaping. The original thought was to have residential urban housing design having the parking deck accessible to the building tenants. Commissioner Burns questioned if the county HRA purchases the development the levy of the city and county would compete with each other. Mr. Hickcok commented that it would be unrealistic that the county HRA would retain the property too long before they find the next owner. Commissioner Gabel asked for clarification on the FTA funds to pay for parking. Mr. Hickcok clarified that the FTA funds will be for surface parking, not deck parking. Surface parking uses more land around the area and is more costly. We will continue to update HRA with other aspects of this project. The final decisions will be made in 2006 with early phase construction starting in 2007. • Monthly Housing Report Mr. Bolin stated that there were two loans for the month which increased the total to 18 for the year. The total budget for the year is $625,000 and we are at $604,000 year to date. H RAMeetingOctober62005 Page 9of9 A mailer has been sent out to homeowners to promote programs. They are working with the senior center to put together energy conservation presentations. OTHER ITEMS: Commissioner Schnabel commented the City of Fridley working all hours to take care of the residents affected by the September 21 '�t storm. She appreciated the dedication to get the city back in shape. She wanted to express her thanks and gratitude. ADJOURNMENT: MOTION by Commissioner Schnabel, seconded by Commissioner Gabel to adjourn meeting. UPON A UNANIMOUS VOICE VOTE, CHAIRPERSON COMMERS DECLARED THE MEETING ADJOURNED AT 10:30 P.M. Respectfully Submitted by, k (t) Krista Monsrud Recording Secretary CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION OCTOBER 18TH, 2005 CALL TO ORDER Chairperson Commers called the Housing and Redevelopment Authority meeting to order at 7:00 p.m. ROLL CALL Members Present: Larry Commers William Holm Pat Gabel Virginia Schnabel Others Present: William Bums, Executive Director Ann Bolkcom, Ward Councilmember Paul Bolin, Assistant HRA Director Scott Hickcok, Community Development Director Gay Cemey, HRA Counsel Jeff Magdik, Vice President, Blue Print Homes Mike Misquick, Sales and Marketing, Blue Print Homes Blue Print Homes was called to attend this special HRA Meeting to discuss the Gateway West Project in detail. Mr. Misquick provided a brief background of Blue Print Homes. Blue Print Homes is a third generation general construction company that was renamed six years ago. They provide new construction for single family homes offering custom design and build services. Recently Blue Print Homes has expanded and added broker and real estate services. This is working well having both teams working together. Commissioner Commers stated that HRA has owned this property for 10 -12 years and is ready to develop the area. When the Gateway East was completed, HRA was not overly happy with the results. Because of this outcome, HRA has asked Blue Print Homes to come in and discuss some of the issues and concerns regarding the Gateway West project. A preliminary plat drawing was distributed for everyone's review. Currently the drawing is for 16 lots and Commissioner Commers questioned if the decision to have 16 lots was driven by the cost of the land. Mr. Misquick commented that they would like to put as many homes as city code allows on the Gateway West area. The object is to optimize the land and with 16 lots shown in the plat drawing, the lots are, not too small and will create a nice community environment. Commissioner Commers questioned if the price of the land was reduced, would they consider larger lots in the area. He also asked what Blue Print Homes has invested in the property thus far. Mr. Magdik stated that if the cost of the land was reduced, they would still go ahead with the preliminary plat drawing. The funds they have invested into Gateway West include development surveying, spring Preview commitment and signs are on hold. Whether HRA decides on 16 or 14 lots won't make a difference, Blue Print Homes will work with the city regardless. The current plat drawing works well with 16 lots as indicated in the preliminary drawing. Commissioner Holm questioned the three lots that face Burger King and if they will be hard to sell. Mr. Magdik commented that those may be the three lots they build the model homes on. Mr. Misquick added that the Burger King lots are the only lots that do not back up to University Avenue. HRA Blue Print Homes Meeting October 18, 2005 They are larger than other lots and will make a good impression as people enter the area. If they don't build the first models on these lots, they will probably be the first lots to sell. The price point is right and once marketable and saleable homes are built he is confident the lots will sell. Commissioner Schnabel asked what the price point of the homes on those lots will be. Mr. Magdik said the average price of the homes will be $250,000- $300,000. He added that the model is likely to be priced less than the homes that people build as many buyers choose to upgrade materials etc. Mr. Misquick added that the MHFA is offering an incentive program for first time home buyers. If they purchase a home for $289,000 they qualify for a mortgage rate of 5 %2% plus an extra $3,000 off. He has a banker lined up and plans to have at least one of the models at this price point. This will be a great way to market these homes and he doesn't foresee many homes over $350,000. Commissioner Holm questioned the preliminary plat drawing and if they thought of closing off 57t' Place. Mr. Hickcok commented that in order to vacate the street they would have to put in a cul -de -sac. Although this would look nice, the survey analysis would not work well and using the existing infrastructure would work better. Mr. Bolin added that the city engineering department supports 57th Place as it has a full right of way, utilities are in place and we would have to replace all services if we closed off that street. Commissioner Gabel questioned if there was anything else that could be done to not have those lots face Burger King. Mr. Magdik confirmed that the only answer would be to put in a cul -de -sac. He also stated that he did not see these lots to be a problem and they would sell. Mr. Misquick mentioned that we need to remind ourselves who is coming into this development. This area is being marketed to young families and first time home buyers. Blue Print Homes recently finished homes in Hugo where the lot price alone is $135,000. This is too expensive for many buyers and if young families want to build a quality home in a nice development, this will be affordable for them. Blue Print Homes hopes to sell as many homes at the $289,000 price point to market the special financing mentioned earlier. If the buyer wants to build a more expensive home, the price will be driven by the home owner. Blue Print Homes can offer a home to a first time home owner and to someone who is looking to build a home for $500,000 +. The goal is to use every inch of square footage and provide quality craftsmanship at an affordable price. People will be excited and increase their options. Commissioner Gabel questioned if the 14 or 16 lots would be preferred. She lives in the area and is concerned of the small size of the 62' lots. Mr. Misquick stated that 16 lots work great in the area. 14 lots are doable but the lay out on the preliminary plat is their preference. Whether there are 14 or 16 lots, the space between the houses (15 feet) will be the same. Home owners always build to the maximum width of the lot so they can have a larger front and back yard. Many owners feel that the side yard is a waste of space and hard to landscape. Homes that are built to the lot capacity have attractive street appeal. If the home is wider than deeper, that is the home that sells because it looks larger. Mr. Bolin added that the preliminary plat drawing shows various sizes of lots in the area. There is no uniformity to the lots and 60' is the minimum standard for the Hyde Park Area. Mr. Hickcok commented that the city ordinance was adopted in 1976 to set the minimum lot requirements to 60' in the Hyde Park area. Commissioner Commers stated that the original thought for the Gateway West area was to provide nice homes along University Avenue and HRA is concerned the lots are too small. HRA wants to make sure HRA Blue Print Homes Meeting October 18, 2005 the new development will meet their expectations. Commissioner Gabel questioned the details of the decorative fences that will go up along University Avenue. Commissioner Schnabel questioned if there would be greenery or required landscaping along the fence. Mr. Hickcok commented that there are funds in the budget for an ornamental fence. This will create a consistent look along University Avenue and require minimum upkeep. They will encourage homeowners to screen and landscape around the fence to keep a uniform look. Commissioner Burns questioned if the privacy fence landscaping could be controlled through a covenant Mr. Magdik agreed that uniform landscaping and fence look would really be nice if kept consistent. Commissioner Gabel questioned if we could require landscaping around the fence in the home owners contract. Mr. Hickcok stated that a $5,000 per lot landscaping allowance will be in the contract. Mr. Magdik added that homeowners are required to install sod and an irrigation system. $5,000 should be sufficient for the home owner to landscape and meet other requirements. Commissioner Commers questioned where the cost for the fence in on the profile. Mr. Bolin stated that $75,000 is budgeted for the fence and is in the Site Improvement and Preparation costs. Commissioner Schnabel questioned if the intention was to put the garage on the front of the homes facing the street. Mr. Magdik shared several views of different options for a garage and some drawings even had the garage around the back of the home. He has walked the Gateway West area several times and can visualize certain homes on certain lots. Commissioner Gabel asked what the average square feet will be for the homes on a 60' lot. Mr. Magdik noted that the square footage could vary depending on the home owner's preference. The square footage could range from around 1200 square foot rambler to a 2400 square foot two story home. Mr. Misquick added that they built a 1480 square foot home on a 40 foot lot. The homes can have look out windows and a finished basement. These square footage measurements do not include the basement. Commissioner Commers questioned the upgrades homeowners can add to the homes and the cost. Mr. Magdik stated that the upgrades are totally up to the buyer. The basic construction will be the same in all homes, but the buyer has the option of upgrading items if they wish. All homes will have wide trim, panel doors, $20 yard flooring allowance, vinyl tub surround, etc. The options are open for the buyer, but the basic construction of each home is still quality. When they install the heat and air conditioning, they install enough capacity so when the homeowner finishes the basement it would still be sufficient. Mr. Misquick noted that all allowances and quality construction will not change from the homes build in the price range of under $300,000 to a $700,000 home. The allowances that the homeowner has for appliances, lighting and flooring are feasible for the home. Some buyers may not want an appliance HRA Blue Print Homes Meeting October 18, 2005 allowance and would like to purchase those on their own. The contract will vary from buyer to buyer depending on what they would like, but the quality of the construction will remain the same. Mr. Magdik added that they will insulate and sheetrock the garage in the models and work with the buyer as to what they want in their custom home. Options are open. Commissioner Schnabel asked if there was a change order fee in the contract. Mr. Misquick said there is a $100 fee in the contract but to date they have never charged a homeowner, it is just a precaution. After the home owner is in their home for 11 months, Blue Print homes will come back and fix anything needed. Mr. Magdik shared a spec sheet and purchase agreement and passed it around for review. Commissioner Schnabel asked what type of driveway will be offered. Mr. Misquick stated that black top is half the price of concrete, so that is what most will select. Commissioner Burns asked what type of siding will be on the homes. Mr. Misquick said the home owner will be required to put vinyl on three sides of the home with a different front. The material on the front of the homes will vary but they dress up the front of the homes to be unique. Blue Print Homes have several different looks for the home owner to choose from. Commissioner Gabel asked if all the homes will have a different look with concerns about having too many materials used in the area. Mr. Misquick stated that the materials are price driven. Blue Print Homes uses a lot of shakes, freeze boards, bold colors and shutters. Commissioner Gabel asked if the trees, such as the elm trees, will stay or be taken down. Mr. Magdik stated that they will mark out the trees to save. They would like to save as many trees as possible as they are a good seller for the lots. Commissioner Burns asked if the new commuter rail coming into the area will help market the homes. Mr. Misquick stated that the market for the area is young families and people currently living in the area who don't want to move out. Location will drive people in and the majority will be younger, downtown people. They will be in the parade of homes in the spring and place a trailer on the property with available plans. He thinks the commuter rail won't hurt or increase business but the Medtronic workers may be interested in this area. Professionals will be attracted to the area as they can buy a new home construction under $300,000 that is close to work and shopping. Mr. Magdik commented that the trim work and style of homes they build remind many buyers of their mother's homes where other buyers may consider this look "retro ". They vision putting in older looking style homes, having 5 panel doors, porches, flower boxes, deck on the backside etc. He said Blue Print Homes is very excited to get started on the project and get signs up on the Gateway West lots. This will be a good look for the City of Fridley. Commissioner Commers asked where we were regarding the reverter option. Ms. Cerney stated that the reverter is the ability of authority (HRA) to get land back if the builder doesn't build on the land as specified. The larger concern is to secure obligation to buy the lots from the city of Fridley. The reverter is a problem with Blue Print Homes as they do not have the right of the property. The best contract option HRA can have with the developer is to sell them two to three lots at a time. This will be the security mechanism in the contract to make sure they take and build on all lots. HRA Blue Print Homes Meeting October 18, 2005 Mr. Magdik noted that they have been working with an attorney with the intention to build 16 homes on the Gateway West property. Blue Print Homes intention is to purchase all of the parcels as quickly as possible and they want to build on all 16 lots. They intend to build 16 nice homes within two years. They do not want to give back any of the lots they purchase from HRA. Commissioner Commers asked if anyone else had any legal or general questions for Blue Print Homes. He also stated that this sounded fair to everyone. Commissioner Schnabel asked if we were working on a letter of credit with Blue Print Home attorneys. Mr. Magdik stated that they intend to build a home as fast as possible so they in turn get paid and then can pay the City of Fridley. This is why Blue Print Homes jumped on the spring Parade of Homes to market this area early. Ms. Ann said she is excited to get this development going. She does not want all homes to look the same and understands the builder's idea of encouraging different looks with porches, decorative fences, landscaping etc. This will be a huge boost to the Hyde Park neighborhood. Mr. Misquick stated that they are excited to build in this small community and has the ability to build quality homes in the Hyde Park area. This will be a great addition to the area. Mr. Hickcok noted that the next steps will be to sign the final terms and agreement contract at the November meeting. A set back code change will be brought forth to the Planning Commission meeting on October 19th, 2005. We are asking to change the set back and space requirements between houses. Currently the code is to have ten feet on one side and five feet on the other side of the home. We are proposing to change the code to seven and one half feet on each side of the home leaving 15 feet between homes. This will allow the home owner to center the home on the lot and they will have more flexibility with floor plans. We are also proposing to change the front yard setback from 35 feet to 25 feet. ADJOURN The meeting adjourned at 8:25 p.m. Respectfully Submitted, Krista Monsrud Recording Secretary DATE: October 27, 2005 TO: William W. Burns, Executive Director of HRA - J. FROM: Rick Pribyl, Finance Director Paul Bolin, Assistant Director of HRA SUBJECT: Approval of Preliminary 2006 Budget On Thursday night, staff will present a draft of the 2006 budget for the HRA to review. Rick Pribyl and Paul Bolin will be available to answer any questions that the Commissioners may have on the proposed budget. The HRA's input will lead to staff making revisions to the draft budget and then presenting a final version for consideration at the December 1st meeting. The budget is divided into three separate categories, like the 2005 budget. The General Fund covers the bulk of the administrative and overhead costs of the HRA. The two Special Project Funds include the revolving loan fund and an additional fund for other housing related programs and services (CEE programs such as Operation Insulation). The Capital Outlay Funds include all of the tax increment (TIF) districts. A draft budget summary has been included for your review. H: \—Paul's Documents\HRAUiRA Agenda Items\2005\November 3Wov2005(PreliminaryBudget).doc �► ACTION ITEM HRA MEETING OF NOVEMBER 312005 c]TY OF FRIDLEY Date: October 21, 2uuD To: William Bums, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subiect• Gateway West — Developer Terms Agreement M -05 -124 Based on the information discussed at the special meeting held on October 18th, legal Counsel updated the development terms agreement and provided a copy to Blue Print Homes for their review and approval. At the time of this writing, Blue Print Homes has not requested any further changes to the development terms agreement. It is anticipated that the terms agreement will be signed by the developer prior to the HRA meeting on Thursday night. Staff recommends that the HRA approve and sign the development terms agreement, barring any major unfavorable changes to the agreement between now and Thursday. This agreement, once signed, will serve as the foundation for the development agreement to be brought forward at the HRA's December meeting. TERM SHEET CITY OF FRIDLEY /GATEWAY WEST October 26, 2005 Redeveloper: Blueprint Homes, Inc. Authority: The Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority"). Redevelopment Property: Fifteen tax parcels owned by the Authority consisting of a North Site and a South Site generally bounded on the east by University Avenue, on the south by 57th Place NE, on the west by 3rd Street NE and on the north by 60th Avenue NE as shown on Exhibit A. The Redevelopment Property also includes portions of City rights - of -way and alleys to be vacated as set forth on Exhibit A. Creation of TIF District: The Authority has created a redevelopment tax increment financing district for the Redevelopment Property (the "TIF District"). Public Improvements: The Authority will perform and pay for the following work on the parcels in the Redevelopment Property before conveying the parcels to the Redeveloper: • Building demolition and removal of demolition debris, basements and driveways; • Site clearance — this shall include removal of all foundations and buildings and leaving the sites in a condition with clean fill to level ground; • Sanitary. sewer to the edge of each of the North and South Sites — the Authority shall ensure there is sufficient sanitary sewer capacity_to service the intended redevelopment; • Water mains and laterals to the edge of each of the North and South Sites — the Authority shall ensure there is sufficient water capacity to service the intended redevelopment; • Construct new sewer and water services to the front property line for all lots-.1 • Construct a 6" water main in 3rd Street from 58th Avenue to 57th Place:i • Construct an 8" sanitary sewer main in 3rd Street to serve the unsewered lots. -2 • Remove and replace concrete curb and gutter as necessary for utilities, utility services, and driveways, and also as required to close vacated streetsq • Remove existing bituminous pavement on 3rd Street, 57th Place, 58th Avenue, and 59th Avenue. -; • Construct new bituminous pavement on 3rd Street and on 57th Place- as needed; • Environmental remediation which shall place the Redevelopment Property in a condition required by law for residential use. Such remediation shall occur if recommended by a licensed environmental engineer; • Vacation of the public rights of way indicated on Exhibit A; • Ornamental fencing along University Avenue (timing to be coordinated with Redeveloper's construction of the Minimum Improvements); and • The Authority shall provide the Redeveloper with all existing environmental reports, including any Phase I and/or H, for the Redevelopment Property as well as all existing soil tests and/or reports. Site Improvements: The Redeveloper shall construct and pay for all site improvements according to City - approved plans, including: • Utility relocation and connection within the Redevelopment Property; • Landscaping; according to a City- approved overall landscaping_ plan to include screening along University Avenue with a minimum per -unit expenditure of $5,000 • Grading and import/export of soil; and • Retaining walls and fences, if needed. Homeowners shall be subject to a deed restriction that fencing may not be constructed along University Avenue. Zoning and Land Use Approvals/Easements: Normal and customary site and building plan review requirements will be followed. Except as set forth below under "Fee Waivers," the Redeveloper shall pay for any necessary platting, plat amendment, and preparation of restrictive covenants, easements, and any other documentation necessary for the construction and sale of the Minimum Improvements. The Redeveloper shall be responsible for obtaining all land use, platting and zoning approvals. Permits/Fees: The Redeveloper shall comply with all applicable City building codes and construction requirements. Except as set forth below, the Redeveloper will pay the normal and customary permit, plan review, utility access and park dedication fees and shall be responsible for obtaining all building permits prior to construction. Fee Waivers: The City will waive its normal fees for right -of -way vacations and for replatting. The Redeveloper will be responsible for any other fees or charges imposed by the County or any other agency or municipality. Minimum Improvements: The Redeveloper shall construct 16 single - family homes ranging kein 1,400 to 2,100 square & et. The Redeveloper shall use its best efforts to cause the unit sales prices to ma $25050,000 The floor—average gpAroximately $300,000. Floor plans and home designs will be consistent with the plans included in the Redeveloper's response to the Authority's Request for Proposals. The quality of the Minimum Improvements shall be comparable to or better than that currently being constructed by the Redeveloper at its projects in Hugo, Blaine, and Oak Grove. A site plan of the Redevelopment Property showing the expected configuration of the Minimum Improvements appears as Exhibit B.. and available upgrades are eutHned in E*hibk-&. Timing of Construction: • Begin on or about April 15, 2006 or as soon as the lifting of winter road restrictions permit • Complete on or about December 31, 2007 Development Costs: The Authority shall pay for environmental remediation, if any, of the Redevelopment Property. The Authority will pursue any eligible programs for reimbursement of environmental remediation costs. At the Authority's request, the Redeveloper will perform remediation; to the extent such remediation is outside the Redeveloper's expertise, the Redeveloper will coordinate such remediation and will be reimbursed for its time as well as any third parties' costs incurred in performing the remediation and the costs will be credited against the purchase price for the Redevelopment Property. To the extent remediation exceeds the purchase price, the Authority shall reimburse the Redeveloper for costs incurred. Survey: The Authority will provide a survey of the Redevelopment Property such as will permit conveyance of the North Site and the South Site to the Redeveloper under a title commitment with no exceptions for survey matters. 3 The Redeveloper shall obtain and pay for any ALTA surveys which may be required for the platting process or which it may desire in order to sell the completed homes. Land Sale Price: The Authority shall sell the Redevelopment Property to the Redeveloper for a price of $700,000 payable as set forth under "Conveyance" below. The Redeveloper shall furnish an irrevocable letter of credit or other instrument satisfactory to the Authority to secure its obligation to Ray the Land Sale Price. Conveyance: After the Authority has completed the Public Improvements (which it undertakes to complete as soon as practicable), the Redeveloper shall accept conveyance of the Redevelopment Property according to the following schedule: • The fifst —three (3) home lots on 57th Place on which the model homes will be constructed (the "Model Lots ") as soon as practicable following the Authority's completion of the Public Improvements and recordation of the final plat; and An additional two (2) home lots at least on a quarterly basis thereafter. At the closing of each conveyance, the Redeveloper shall pay a pro rata share of the total land sale price in cash. Title: The Authority will transfer marketable title by quitclaim deed and will pay for a title commitment. Any title insurance and/or endorsements requested by the Redeveloper will be paid for by the Redeveloper. At the Closing the Authority will provide the Redeveloper with evidence of marketable title. The Authority will cooperate with the Redeveloper to ensure that all purchasers of homes are provided with clear and marketable title. im - - M -- R - Mern Taxes: Prorated as of closing: Authority to pay prior, Redeveloper to pay future. Assessments: Authority to pay pending and levied. Due Diligence: The Redeveloper shall have the right to enter the Redevelopment Property and perform any environmental or soil testing and other 0 due diligence the Redeveloper deems necessary for a period of 30 days following execution of an agreement. The Redeveloper shall hold the Authority harmless from any liability resulting from entering upon the Redevelopment Property for such purposes. The Authority shall provide the Redeveloper with any documents, including correspondence with any environmental agency, affecting the Redevelopment Property. Remedy Upon Redeveloper's Default: The conveyance transferring the Redevelopment Property to the Redeveloper will contain a right of reverter which will be superior to the rights of any liens, except that the Authority will subordinate its interest to the Redeveloper's construction loan mortgage. The right of reverter shall be released for each finished home upon the sale of such home. Effect of Term Sheet: This Term Sheet outlines the terms under which the parties are willing to enter into a contract for private redevelopment, but does not constitute an offer or acceptance on either party's part. All rights and obligations with respect to the Redevelopment Property shall only be as provided for in the Contract for Private Redevelopment approved by the HRA Board. G\WPDATA\MFRiDLEY\61\DOC \TERM SHEET V5.DOC 5 NORTH SITE: Redevelopment Property (Parcel Diagrams) rol I I I I I I I i � w W .a !4 Q I I t- ,4, G7' W w z �1 M SOUTH SITE: -1 K Ed' W j I� W 3 J TV Om. .22. !rl 11 Ili. Ulm" / 0 T r ' 7 91 I M b I ' 6 I h Cs ` ti 4+ 0 w 'a k o I ;111 yE h J i I Redevelopment Property (continued) (Parcel List) NORTH SITE: Address Legal Description PIN 1 5955 3rd Street NE Lots 25 and 26, Block 12, Hyde Park 23- 30 -24 -22 -0136 2 5931 3rd Street NE Lot 24, Block 12, Hyde Park 23- 30 -24 -22 -0135 3 5925 3rd Street NE Lots 22 and 23, Block 12, Hyde Park 23- 30 -24 -22 -0134 4 5923 3rd Street NE Lot 21, Block 12, Hyde Park 23- 30 -24 -22 -0133 5 5917 3rd Street NE Lots 19 and 20, Block 12, Hyde Park 23- 30 -24 -22 -0150 6 Unassigned Lot 18, Block 12, Hyde Park 23- 30 -24 -22 -0130 7 5901 3rd Street NE Lots 16 and 17, Block 12, Hyde Park 23- 30 -24 -22 -0129 8 — (to be vacated) Alley east of Lots 16-26 and west of University Ave ROW — 9 — (to be vacated) 59th Ave ROW south of Lot 16 — SOUTH SITE: Address Legal Description PIN 10 Unassigned Lot 16, Block 21, Hyde Park 23- 30 -24 -23 -0038 11 — (to be vacated) Alley east of Lot 16 and west of University Ave ROW — 12 — (to be vacated) 58th Ave ROW south of Lot 16 — 13 Unassigned Lots 9 and 10, Block 28, City View 23- 30 -24 -23 -0130 14 Unassigned Lot 9 and north %2 of Lot 7, Block 28, City View 23- 30 -24 -23 -0129 15 — (to be vacated) 3rd St/Jackson St ROW west of Lots 6 and 7 — 16 Unassigned Lot 6 and south %2 of Lot 7, Block 28, City View 23- 30 -24 -23 -0128 17 — West 7 feet of vacated alley lying east of Lots 6-10 — 18 — Vacated 57%2 Avenue ROW south of Lot 6 — 19 271 57th Place NE East I/2 of Lot 7 and all of Lots 8 and 9, Block 2, City View 23- 30 -24 -23 -0013 20 281 57th Place NE Lots 10 and 11, Block 2, City View 23- 30 -24 -23 -0014 21 Unassigned Lot 12, Block 2, City View 23- 30 -24 -23 -0015 22 Unassigned West 25 feet of Lot 13, Block 2, City View 23- 30 -24 -23 -0016 23 — (to be vacated) 57th Place ROW south of Block 2 — Site Plan [to be added] EX [HBTT B d ■'' ACTION ITEM M`` HRA MEETING OF NOVEMBER 3, 2005 CITY of FRIDLEY Date: October 27, 2005 To: William Burns, Executive DirectorAOP From: Paul Bolin, Asst. Executive HRA Director Subiect• Home & Garden Show Admin. Contract M -05 -126 Background The Fridley HRA has been the fiscal agent for the Home & Garden Show since its inception 8 years ago. The Cities of New Brighton, Mounds View, and Blaine are partners in sponsoring the show. The revenues from booth rentals cover all of the expenses associated with the show. After the 2004 show, staff from the sponsoring cities determined that contracted administrative help would be desirable. There are a number of tasks necessary to organize a successful show. Advertising, finding sponsors, mailing out & receiving booth registrations, selecting table & curtain vendors, and site logistics were taking up a large amount of staff time. Additionally, it was often hard to coordinate if the tasks were divided up between the different staff people. Last year the group contracted with Marsha Wagner (dba- Castle Visions) to perform the administrative tasks mentioned above. Marsha worked very hard and the 2005 Home & Garden Show was the most well attended event to date. Additionally, Marsha was able to find sponsors and increased the revenue from booth rentals. The Home & Garden Show planning group would again like to contract with Marsha Wagner for the 2006 Home & Garden Show. Marsha's rates are very reasonable and the show generates adequate revenue to cover the cost of contracting with Marsha. Staff Recommendation Staff recommends that the HRA approve the contract between the HRA and Marsha Wagner /Castle Visions to provide assistance with the 2006 Home and Garden Show, as detailed in the attached contract. CV Draft — 7129105 G CUSTOMER CONTRACT CLIENT NAME: Housing and Redevelopment Authority in and for the City of Fridley, 6431 University Avenue N.E., Fridley MN 55432, 763 -572 -3591, (hereinafter referred to as "Client°) CONTRACTOR: CastieVisions, Young Quinlan Building, 81 S. 9t' Street, Suite 415, Minneapolis, MN 55402, 612 - 338 -2122 (hereinafter referred to as "Contractor") SCOPE OF SERVICES: Contractor will provide administrative services as described in the attached Schedule 1 - Services and Compensation and other administrative duties agreed to between the parties during the term of the contract, all of which relate to the coordination of the 2006 North Metro Home and Garden Fair. RATES: Contractor shall bill Client at the rate of $50.00 per hour for administrative services provided during the term of this contract, as further described in the attached Schedule 1 - Services and Compensation. Rush projects or work performed on weekends or evenings (excluding services provided on the day of the Fair) will be performed at the rate of 150% of the hourly rate of the rush project. The rates set forth in this Agreement will not be increased for at least one year from the date of the agreement. Contractor reserves the right to increase its rates beyond that date with no less than 30 days' advance written notice. Contractor will invoice Client on a monthly basis for the duration of the project. CONFIDENTIALITY: Contractor will keep confidential any and all documents of Client (electronic or paper). Any and all documentation, information, files (electronic or paper) will be returned to Client upon completion of each project unless directed otherwise by Client. APPOINTMENTS: Client shall deliver and pick up work by appointment only. Client shall pay a fee of $50.00 for missed appointments (including over Y2 hour late) unless Contractor is notified at least one hour prior to the appointment. CONSULTATION: Time spent conferring about Client's project shall be billed at the hourly rate of $50.00. CHARGES AND PAYMENT: Work shall be estimated according to the Industry Production Standards established and published by the Association of Business Support Services Intemational Inc. and billed at the rates described in Schedule 1. Because of the varying nature and unpredictability of different projects, it is not possible to give formal estimates. Payment is due when client picks up the work, whether in draft or final form (unless otherwise agreed to by Contractor). Payment for first -time customers should be made in cash unless otherwise arranged. A fee of up to $100 may be charged for any returned check. Contractor shall retain work until payment is received. In the event of changes to the scope of work or other factors outside of Contractor's control, Contractor shall reserve the right to renegotiate this Agreement and collect for all services performed up to the date of renegotiation. PROOFREADING & REVISIONS: Work will be copy edited in pen on Client's rough draft unless Client specifically requests otherwise. An updated printout of Client's document shall be returned to Client for proofreading, and the final copy printed only after Client approves the draft. Corrections and revisions shall be billed at the regular hourly rate. Final responsibility for proofreading and approving the final draft lies with Client. Contractor cannot be held liable for typographical omissions, content, etc. Home Garden Show Admin Contract -2006 7/29/2005 Client will include a hard (printed) copy of the most recent version of the document when submitting work for revision, making any revisions directly on the copy in red pen. Client will also keep a copy at Client's office for reference in case of telephone questions. REPRESENTATIONS, WARRANTIES AND INDEMNIFICATION: Client shall indemnify, defend and hold Contractor, its agents and employees, harmless from loss, damage, liability, claims, demands, suits, and expenses, including but not limited to reasonable attomeys' fees, based on fines or penalties resulting from any failure on the part of Client to comply with any laws, ordinances, rules or regulations or failure to obtain licenses or permits as may be required on any patent, copyright, trade secret, or other intellectual property or contract rights of any person or entity. In the event that any of the services performed by Contractor are determined to be infringing, Contractor shall, at its own expense, modify or replace the same so that it is not infringing, provided that the replacements and modifications shall perform substantially the same as the replaced items. STORAGE: Files will be stored on disk for one month at no charge. Resumes are stored permanently at no charge. Client may purchase a disk and backup disk if planning to return for revisions after one month. If Client brings work in on a floppy disk or cassette tapes, Client shall first make and retain a backup copy. Contractor cannot be responsible for loss due to error or damage. TERM AND TERMINATION: This Agreement shall commence on , 2005 for one year and may be terminated by either party upon two (2) weeks written notice to the other without cause and further provided that either party hereto may terminate this Agreement immediately upon a breach by the other of its duties hereunder. In the event of termination, Client shall pay contractor for all hours and expenses accrued up to the date of termination. In the unlikely event litigation is commenced between the parties of this Agreement, the party prevailing shall be entitled, in addition to other relief, to a reasonable sum for attorney's fees. APPROVED: CASTLEVISIONS By 7 L Z)4a Marsha Wagner President - Date: 6 4. l ? p 'z dD 'S HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY By: Its: Date: Chairperson -2- By Its: Executive Director Date: SCHEDULE 1 SERVICES AND COMPENSATION A. Contractor will perform the following Services, as requested by Client, subject to the terms and conditions of the Customer Contract: 1. Administrative services related to the coordination of the North Metro Home and Garden Fair, including the following specific duties: a. Vendor registration b. Coordinate marketing and advertising efforts c. Event logistics d. Sponsor solicitation e. Coordinate workshops f. Assistance at event B. Contractor will provide no more than eighty (80) hours of services for client during the term of this contract. C. Payment for Services shall be at the following rates during the term of this Agreement: $50.00 per hour, not to exceed $4,000.00 during the entire term of the contract. D. Reasonable expenses incurred by Contractor in performing Services will be subject to review and approval by Client. E. All fees and approved expenses will be paid within thirty (30) days after receiving Contractor's invoice. ■' ACTION ITEM i` HRA MEETING OF NOVEMBER 312005 CrY of FRIDLEY Date: October 27, 2005 To: William Burns, Executive Director 1A From: Paul Bolin, Asst. Executive HRA Director Subiect• Islands of Peace — Update M -05 -125 Bancor Group Bancor Group has really begun to explore a number of potential site designs and potential layouts. They continue to examine different street configurations, park improvements, and potential housing products to make the project feasible. Bancor has asked that a joint HRA- Council meeting be held to discuss some of their early configurations. They want to incorporate as much of your vision and desires into the project, as is practicable, before heading too far down the road of site design and building type. A joint meeting has been set for Monday, November 14th at 6PM. The meeting will be held in the lower level meeting rooms in City Hall. A dinner will be served. 6000 East River Road At the time of this writing staff is still awaiting the receipt of a signed purchase agreement. A discussion with the family, earlier this week, indicated that they were still very interested in selling. They were just taking their time signing the purchase agreement until they had a better idea of where to move the brother that lives in the home. Fridley HRA Housing Program Summary Cover Page November 3, 2005 HRA Meeting Report Description Loan Application Summary Loan application activity (e.g. mailed out, in process, closed loans) for October 2005 and year -to -date. Loan Origination Report Loan Servicing Report Remodeling Advisor & Operation Insulation Loan originations for October 2005 and year -to -date. Loan servicing by Community Reinvestment Fund (CRF) for the month of September 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. 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V xxxxxO r N M 0 O r r m t` ,It N O F- Y e a Fridley HRA Loan Origination Report October 2005 Loan / Grant Originations 1 2% Kitchen remodel 3 7% General plumbing This Previous Heating system 5 12% Month Months YTD Loans Issued - 1 18 19 Grants Issued Room addition 1 2% Misc. interior projects 2 Total 1 18 19 Funding Sources 2 5% Roofing 1 2% Windows /Doors This Previous Garage 2 5% Month Months YTD Fridley HRA $ - $ 329,062 $ 329,062 MHFA $ - $ 15,677 $ 15,677 Met Council $ - $ - $ - CDBG/HOME $ - $ - $ - CEE $ 10,000 $ 7,418 $ 174,187 Other $ $ $ Total $ 10,000 $ 352,157 $ 362,157 Types of Units Improved This Previous Month Months YTD Single Family 1 18 19 Duplex - Tri-Plex - - - 4 to 9 Units - 10 to 20 Units - - - 20+ Units - Total 1 18 19 Types of Improvements Interior # of Projects % of Total Bathroom remodel 1 2% Kitchen remodel 3 7% General plumbing 1 2% Heating system 5 12% Electrical system - 0% Basement finish - 0% Insulation 1 2% Room addition 1 2% Misc. interior projects 2 5% Exterior Siding/Fascia/Soffit 2 5% Roofing 1 2% Windows /Doors 11 27% Garage 2 5% Driveway /sidewalk 6 15% Landscaping 3 7% Misc. exterior projects 2 5% Monthly Servicina 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 KRA Loan Servicing Report September 2005 * Pool Pool Pool Deferred Installment Installment Loans Loans Loans - 1,503.32 8,861.36 - 467.80 2,883.99 - 1,971.12 11,745.35 29,738.16 125,304.40 794,721.13 6 12 58 Total " September Information Received October 10, 2005 Delinquent Loans 2.00 $ 2.00 $ Delinquent Payments 2,484.72 $ 2,484.72 $ Pool 3 Deferred Loans 19,917.92 4 Delinquent Principal 6,849.45 6,849.45 Total 10,364.68 3,351.79 13,716.47 969,681.61 80 $ 509.00 $ 13,207.47 % of Delinquent Principal 0.00% 0.00% 0.70% 0.70% e a T V CO L 0 U) a i V 0 AE NW 0 LO CD r N ti r N = 0 as CL .O � L V LL 0 w c V d m E m .I-' CL O N M c- r M r 0 o c E CL 0 Q. V a w c -o m m E 5 - m rONMr -IT M LO O v Q N a ca L .Q L E " 'C A 0) CL V cu ,Q co C: O N �� li2Q2Qtl0Z0 c r N O s L w d w � m O CL O d O O O G O O N CL 0 CL L: Q w c V m _d E 7 C d O'I O O O G O O N •Q Q N N r- ti N N Go o O C7 � t9 c a o d E ° c �O CL Q El CD 6p, LO ti r 1C t4 R /O 7 ,,Onn V V V Q o Ee O Q Q 21 FD .Q L s cu E 0 E E C 'Q C A Q > U 2 �t.t_MQ2�- Qcn0Z0 N N r- ti N N Go o O C7 � t9 c a o d E ° c �O CL Q El CD 6p, LO ti r 1C t4 R /O 7 ,,Onn V V V Q o Ee O Q Q 21 FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY November 35 2005 L Viper Motorcycles Staff met with representatives from DEED (VIN Department of Employment and Economic Development), Anoka Partners (the new name of the Anoka County Economic Development Partnership), and the CEO of Viper Motorcycles to discuss their desire to move into Fridley. Viper Motorcycles is a motorcycle manufacturer specializing in high end ($29,000 - $39,000) customized motorcycles. They are currently located in a smaller multi- tenant building in New Hope and are considering moving into a portion of the BAE (United Defense) building. This move would allow them to have the ability to grow the size of the company and increase the number of motorcycles produced per year. The Company recently went public and their stock ticker symbol is VPWS. Their website is h=: / /www.vipernaotorgEcle.com/ They employ 20 people in their current location, but plan to employ 36 people within 6 months and 50 within one year. The individuals involved in this venture all have successful track records with other companies, such as Polaris, Victory, and Triumph. They seem poised to avoid the pitfalls that claimed Minnesotas last motorcycle start -up boondoggle, Xcelsior- Henderson. Motorcycle critics appear to really like the Viper Motorcycles and the popularity of cable shows like Monster Garage and Orange County Chopper have caused a high demand for this type of motorcycle. 2. Search for new Accountant The City is currently in the process of taking applications for the HRA Accountant position. Paul Eisenmenger left employment with the City on October 17s'. Rick Pribyl, Finance Director will be taking over Paul E's duties until a replacement is found. 3. NorthStar Update Anoka County and the NorthStar Rail Authority continue to move forward in planning the parking areas and train stations as they seek additional Federal Funds for the rail project Anoka County and /or the Rail Authority plan to purchase the property surrounding the proposed rail station at 61s` Avenue. They would like the City /HRA to take over the property not needed by the rail for residential development. At this time, a possible sales price for the property has not been set. Over the next several months, the HRA may want to discuss the possibility of doing a project surrounding the proposed rail site. 4. Medtronic — Ehlers TIF Review Rick Pribyl has informed me that Ehlers has completed their TIF Review for Medtronic. At the time of this writing, he was waiting to receive a summary or the results from Ehlers. Rick will be at the meeting on Thursday and can provide a brief update of the results. If there are any items you would like covered in upcoming issues of the Non - Agenda Update please send me an e -mail. bohnp @ci.Eddley.mn.us