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HRA 03/03/2005 - 29590�� 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: Februarv 3, 2005 The following corrections were requested: Page 3— Last sentence — change the word "considered" to "consider". Page 5- 3�d line from the top, the last 2 words "is authorized" should be deleted because it's repetitive. Page 4— 5t" paragraph — 2"d 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 — Mazch 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 IlAOTION CARRIED. UNANIMOUSLY. ACTION: Mr. Bolin explained that the HRA'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 befinreen the HRA and Target that gives the HRA HOUSING AND REDEVELOPMENT AUTHORITY MEETING — Mazch 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 TrafFc 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 staff s 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 r 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 finro 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 Insutation program visited 4 different homes in February. The Remodeling Advisor will be at the Home and Garden Show on March 5tn • 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 — Mazch 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 �tated 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 finro 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 AUT'HORITY MEETING — Mazch 4, 2005 Page 6 of 9 r'~ 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 forvvard 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 aetivities 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, ownecf 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 r.-� 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 attomey 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 AUTHORIT'Y 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 finro 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 finro 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 AUTHORIT'Y MEETING — March 4, 2005 Page 8 of 9 �"'�� eliminate safety and health problems, capitalize on the Iocation 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 neig�iborhood 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 Cifiy 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 — Mazch 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 attomey, 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. .... - � � `� ��� C% ecca Brazys Recording Secretary � a F CITY OF FRIDLEY � SIGN-IN SHEET HOUSING & REDEVELOPMENT AUTHORITY MEETING i'�C��''c;� � : �� G �.� --------------------------------------------------------------------------- --------------------------------------------------------------------------- Name and Address Agenda Item of Interest ��s%- f �,,��� ��� � �c� _ �, _ f � � � I � � ! a P �,� � ll., . f. 4 �' �_-� ,-r�o e � � r ,�'.m�'� i ��� 9yg ..��r�xe � —. a��..a �7 ldV �c� Vr� ,^ G� �7��'u 4�.4��O�i-- i���� 1_��'�V�e� ��. l� f, �� P��; � I � 0