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HRA 09/07/2006 - 6227CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING Thursday, September 7, 2006, 7:30 P.M. AGENDA LOCATION: Council Chambers (upper level) CALL TO ORDER: ROLL CALL: APPROVAL OF MINUTES: -� 1. Approval of August 3, 2006, Meeting Minutes CONSENT AGENDA: -4- 1. Approve expenses - 0, C ") �, t .�_ " r } " . - � ACTION: 1. Approval of Tax Levy for taxes payable in 2007. 2. Approval of payment to Ashland Oil for quick-take condemnation ? JI 3. Approval/Authorization to move 457 Plan from ICMA to Wells Fargo INFORMATIONAL ITEMS: f 1. Gateway West Update \1 2. Monthly Housing Report 3. TIF Assistance for Industrial Equities ADJOURNMENT: CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION August 3, 2006 CALL TO ORDER: Chairperson Commers called the Housing and Redevelopment Authority meeting to order at 7:35 p.m. ROLL CALL: Members Present: Larry Commers Pat Gabel William Holm Members Absent: John Meyer Others Present: Mike Jeziorski, City Accountant Paul Bolin, HRA Assistant Executive Director Gay Cerney, HRA Jim Casserly, Development Consultant APPROVAL OF MINUTES: 1. Housing & Redevelopment Authority — June 1, 2006 MOTION by Commissioner Gabel, seconded by Commissioner Holm, to approve the minutes as presented. UPON A UNANIMOUS VOICE VOTE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. CONSENT AGENDA: ACTION: 2. Approval of changes to Gateway West Development Agreement- requirement for letter of credit. Paul Bolin, HRA Assistant Executive Director, stated as they were preparing for the June 20 closing on the first three lots they were turning over to Blueprint Homes, it was revealed there were some technical problems with requesting a Letter of Credit from Blueprint Homes. As they looked into this, quite simply, Blueprint is really too small a builder to have much other security than land for a Letter of Credit. In this case the HRA actually owns the land. It does cause some Chairperson Commers commented they just have to make sure it does not happen again; otherwise, they might have to enforce their rights and nobody would be very happy then. MOTION by Commissioner Holm, seconded by Commissioner Gabel, to waive the Letter of Credit requirement for Blueprint Homes. UPON A UNANIMOUS VOICE VOTE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. 3. Gateway West - Addition to street project. Mr. Bolin stated what brought about the change is as they redid Third Street, they were going to do the entire section between 57th and up through the project. What happened when the bid specifications were put together, was that the city engineering department put it together like any other street project, and somewhere along the way the portion of Third Street in between the southern and northern block was dropped to save some costs and because technically they were not necessary from an engineering prospective. It had always been their intention to try and tie the entire neighborhood together; that it would look kind of odd to have this patchwork quilt look up and down the street where you would only have nice new street in front of the brand new homes. Likewise with the fencing project, the fence ran the entire length of the project to tie everything together. Midwest Asphalt has already been out and they have taken off the bituminous where the street is going to be completely reconstructed. Mr. Bolin presented some photos. Mr. Bolin did mention in the memo in their packet he was waiting to get a bid back from Midwest Asphalt to have them go from the northern edge of the project all the way to 61St Street. For some reason the street is about 4 -feet wider than it is to the south. Roughly the lineal footage is fairly similar but they end up with quite a bit more square yards because of the bituminous needed for the extra 4 -feet of width. That explains the price difference between the two bids. It was $23,000 to do that block in between the projects and, if they added that block to the north, it is almost another $39,000 for a total of $62,724 to mill and overlay those two sections of street. He did have a conversation with Jon Haukaas, the Public Works Director, about this and they do not have plans to come back in on that street and do a mill and overlay. The soonest they would do it would be maybe 10 years from now, but could be as long as 20 years from now before they would see new bituminous on those pieces if we were to skip them. Mr. Bolin stated apparently that section of street already has the concrete curbing and it has the 3 -inch lift of asphalt. While the standard in Fridley now is 3 ' /2- inches, over half the City has only 1 '' /2- inches. In the next three or four years they are going to finish reconstructing the streets that do not even have the concrete curb yet and then and, once they get to that point, then they are going to prioritize and start doing these mills and overlays on those streets that only have the 1 ' /z- inches. This would not be a case where if they spent this almost $63,000 to tie the entire street in so it has the look of being new from 57th up to 6 1St, at the end of two years from now the Mr. Bolin replied he thought it was a combination. He thinks they are gaining interest now but they are not able to sell those lots off yet. They still have city attorney Knaak working on getting the tenant issues solved on that southern block. He has a meeting with him the next day and he thinks they will finally have everything in place that they need to get that final milar plat drawn up so they can take that up to the County. That should change fairly quickly. There are some rather large trees they were able to save and tuck the homes in behind. Commissioner Gabel stated if you drive in there, especially from that northern block, the better it looks, the better off they are. Commissioner Holm asked what is the timeframe for doing this mill and overlay? Mr. Bolin replied Midwest Asphalt just last week got another contract from the City, they were awarded a mill and overlay contract for a number of street sections throughout the City so ideally they would get in there probably within the next three weeks or so and do additional overlay and once the utility work is done in the other two sections before they put down the asphalt on there, they would go in and mill this out so they can do the overlay and asphalt all that at the same time. Commissioner Holm asked so there is no need for this project to be delayed until the homes are sold? Mr. Bolin replied, no there is not. They are moving forward with the street work right now and the utility work starts on Monday. MOTION by Commissioner Holm to approve the Mill and Overlay Project to Include the Area Between the Two Sites and Also Extend the Mill and Overlay to 60th Street. Seconded by Commissioner Gable. Commissioner Holm stated this would probably save them an amount in the $35,000 range. Mr. Bolin replied, yes, probably. UPON A UNANIMOUS VOICE VOTE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. 4. Claims and Expenses MOTION by Commissioner Gabel approving the Claims and Expenses as presented. Seconded by Commissioner Holm. UPON A UNANIMOUS VOICE VOTE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. Mr. Casserly stated the problem is there are a number of instances in which property is in fact environmentally deficient and really requires a lot of remediation but one that is in place. It is not contaminating drinking water, for example. So it is not an immediate public health hazard. But to clean up the area is very expensive. They are working with a number of sites right now where they have had areas that are in fact contaminated but the land value for those uses is very high. It is not unusual at all to have a land value for a use like that to be $5 and $6 a square foot. So if they wanted to convert that land into another kind of use; in fact, if you multiply $5 a square foot by 43,000 (which is the amount of square feet an acre) that is a couple hundred thousand dollars an acre of cleanup. While that land is for a trucking terminal use, it is oftentimes clearly worth that and maybe substantially more than that. But to take the land and convert it into other uses, is extremely expensive and we are going to be discouraged from doing that. We have some instances in Fridley where we have some salvage yards and in which we have a very expensive cleanup, and we tried maybe three or four years ago to get involved in a substantial cleanup; but the acquisition cost combined with the cleanup cost was ,just too great for what they could convert the land into and we did not go ahead with the projects. So, they are going to have some problems. Mr. Casserly stated probably the most serious concern they have is that rarely do you have contamination that is uniformly spread around. What you have is a hot spot or a small amount, it will extend around to some parcels, it will be only a little bit on others and, as you try to put together a site that you could logically redevelop, we are going to have a very difficult time meeting these tests for these parcels. The legislation makes it very difficult — it talks about in the statute, where the language is very difficult — there is no feasible alternative and the Authority really has the burden of proof of demonstrating there is no feasible alternative. That is a very difficult thing to be able to demonstrate. As a practical matter we are going to have some problems. Mr. Casserly stated clearly the Authority will clearly be able to undertake the projects in which the owners are looking to do remediation. They are looking to do cleanup and they have control of the sites. The HRA is clearly going to be able to proceed with projects in which you have voluntary acquisitions. This only deals with the time you have involuntary acquisitions to complete the assembly. It is not going to be particularly noticeable until such time that they want to undertake a more aggressive, larger project, or typical urban renewable type project. They sense that it will take several years to catch up. Because the eminent domain legislative was so onerous, it grandfathered in dozens of projects. The effective date goes on for a page and it has the effect of essentially including almost all the major projects going on in the state right now. So as those projects start to become completed, and other communities start looking to see if they can be doing projects, they are going to start running into these issues. So it is going to take a few years. His office is involved in three major projects that are all grandfathered in. There is a huge one in Roseville, the Twin Lakes projects, which is a third to a billion redevelopment projects. The Northwest Quad project in New Brighton is grandfathered in, and there are other several major projects they are involved in. Mr. Casserly stated what they think is going to happen is, as cities have specific projects that really cannot be undertaken, they will go back to the Legislature —just like they did with our tax increment issues. In 1990 the Legislature passed an enormous number of restrictions on tax 7 Chairperson Commers stated so it will be very difficult. Because even, for example, a 20 -unit building you have to replace all the windows and it seems even at 50 percent he would think it would be next to impossible. Mr. Casserly replied we will have to see. It is always a problem. When properties are not as severely blighted but clearly they are sliding down. The properties that are really either boarded up or vacant or next to the conditions that have been aggravated over neglect over many years, those are properties that we are going to be able to acquire under this. However, when you have properties that are really deteriorating but are not to the point where you can go in and use this law, he is not exactly sure what communities are going to do. Suburban communities generally have had a lower tolerance for that Izind of sliding into blight. You do not have to go too many miles from here and it is real obvious what the problems are and how the properties have really deteriorated. What you would like to do generally in most of the communities that they really represent in the suburban area is to try and figure out how to deal with those issues before the blight has aggregated. You really want to stop it before a real decline starts to occur because it is very, very apparent that values do deteriorate and the stuff does feed on itself. So the problem you get into is how massive does the blight have to be before there can be some kind of govermnent action that really can intercept that and intervene. So these are all issues that are just going to be have to be sorted out as they go forward. Chairperson Commers commented it is also going to make it much more expensive. He just sees now the going concern change. That is going to cost the municipalities lots of money based on shifting the burden on that. However, it will stop game playing with the appraisals a little bit. Mr. Casserly commented most of what they find on these things is really an issue of money. They are involved in a number of condemnations and redevelopment projects and in all instances we are working with now there are no residential properties involved. There are sites where for a lot of theirs the landowners are actually corporations located in St. Louis and New Jersey or wherever they are and it is just kind of talking about money. Mr. Casserly stated he thinks for the most part a lot of the problems have been maybe through the Department of Transportation, they are being a little bit heavy- handed because we are so far removed from the communities we do not hear a lot of stories about the City of Fridley or New Brighton or Oakdale or Richfield. The story in Richfield of course was wonderful because you had incredibly wealthy people arguing over enormous sums of money. The value to the property owner of appealing the property in that case ended up being about a $9 million swing. The amounts are staggering and so that gets you into all kinds of other interesting issues about who should make decisions over land use as cities mature and development and move on. There are some larger societal questions involved, and this unfortunately picks at one set of problems without providing any solutions for some of the other issues. He stated that most of the things going on is really making the authority and financing easier to use and so this is actually good. 2. Gateway West Update -Power Point Presentation 9 for those few years, and all of a sudden the rate adjustment kicks in and the people are not making any more money than they did three or five years ago or whatever the circumstances are they cannot afford their homes anymore. He has a request in to Anoka County to find out how many of those are in Fridley. Mr. Bolin stated regarding loan originations, the 3 loans that went out in July out of our funds totaled $18,340. Year -to -date out of our loan fund, we have loaned $131,000 as has been the case in the last three or four years all of the units have been improved with the City's rehab loan money coming from single- family homes. They can see the types of improvements are bathroom remodels, there are a lot of structural or necessity things such as plumbing and heating things. Siding, some fascia, windows and doors. So it is a lot of those things that are necessary to maintain a home in good shape. For insulation numbers the HRA can see for Operation Insulation they set a goal of 25 meetings this year and so far they have only had 2. He just cannot understand why that number is so low. The program does get promoted and people who have taken advantage of it are very happy with the program. It is relatively inexpensive for the resident to have Operation Insulation come out and give them an energy audit of their home. Mr. Bolin stated the Remodeling Advisor visits are right on track to meet our goal of 50 appointments this year and we are at 28 so we are at about 56 percent of our goal there. He gets as many calls for that as he does for Operation Insulation but for some reason people are not following up. Part of that may be that the remodeling advisor is going out there and pointing out a lot of these things with additional insulation and whatnot but he would certainly encourage people to contact us and have Operation Insulation come out and do the low energy audit because it is amazing when you look at these homes with the infrared cameras and do the blower dart test just how inefficient some of these things are. Non- ALYenda Item Islands of Peace Update Mr. Bolin stated Grant Rudolph has been working on rehabbing the building at 151 Island Park Drive. He has not heard any word on if he has had any sales or not but he did go down and toured one of the units he has rehabbed and it is quite a change from what was there previously. He hopes lie is successful in this venture because it really would change things in that neighborhood. Mr. Bolin stated the other thing is they were awarded another $125,000 from Anoka County's Community Development Block Grant Program, and that money is going towards those utilities and street work that are being done in Gateway West. Kate Thunstrom, the coordinator for that program, told him she appreciates the fact that Fridley, unlike some other cities, only asks for the money when we need it and when we have a real project. She said there are some cities that apply every year and, if they get the money, maybe they can find a use for it. So he thinks that is why typically Fridley has been successful when they have applied for funding through the CDBG program because they do not apply every year. 11 x w ro mW E 0 N Q1 N (D 0 0 E E E 0 S E - E O w 2 u LL 0 o C 0 00 LO 0U) 00 0. 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OD - 00 n — IL (L -j 2 A L 'T i2 0 (D Cl) 0 cli 00 \—v (D (3) to I- > r- co z z Cl) co m m 0 03 0) v z z 00 r- CN 00 00 0 00 w w 0 00 0 000000 0 0 co m Cl) cn 0 co m m co a Ln V co (n LO m 'CIII v co M 'T co m to cn co 0 0 0 0 99 v cq cq m cn m co 0 m m m m co 0 0 0 v cn 999904 E r;r- 9 m m co cl 0 6 V999" C5 ce) 9 M 9 9 m co m co v v C56 m m m cn m ZMAHj C, 6 CD 000 0 O 0 0 0, 00 0 o 0 00 0 0 0000 0 0 0 00000 000�o 0 0 0 0, 9 00 00 go 0 9 0 0 a C? 00 99 0 0 00000 0 00000 o C3 0 0 0 666 6 r-� 6 i= 6 th r- LO P-L 6666— c5 us r-L 0 r-- to r_ 0 (D �T LO to ca 'T > �s '0 q ;z W -q ;z CD W cm C14 w EN 0 r _ m , 't IT v �2 UD C-4 ca C-4 0 N Q1 N (D 0 0 E E E 0 S E - E O w 2 u LL 0 o C CL 0 .0 .0 E 0 C 0- r cEL :2' w ca r W m 0 rm-(Ii 0 0 0 Cl 0 m 00 0 0 0 LL m 0 LL 0 0 li w 0 1 - .5 L - 0 - 0 U- 0 J: a ca 0 W CL c go -@ 0 a. m tm 0 .2 75 FL �;, 2 (L 1; M 0 'a 12 wm m ca E — 0 CD a :a r I ca (a 0 ca 0 ca 4) > 0 M 'La �r 2) - AM m r- LL g (L IL (L -j 2 A L 'T i2 0 (D Cl) 0 cli 00 (0 (D (3) to I- > r- co z z Cl) co m m 0 03 0) v z z 00 r- CN 00 00 E E fa co (D E E ca a CL 2 0- 2 0 N (D m a ca 0 -j 0) > a w ca 0 w -1 Im E 0 0 a 2 E' (D E 5 0 T cu 0 ca < 0 D Lil 0 r_ r_ C: m 0 a. 0 -0 0 0 CL L) a) E r z z 0 0 4) > y .2 U) 2 w 0 2 LL LL 0 COMMUNITY DEVELOPMENT DEPARTMENT HOUSING AND REDEVELOPMENT AUTHORITY Memorandum DATE: August 16, 2006 TO: William W. Burns, Executive Director of HRA FROM: Mike Jeziorski, HRA Accountant Paul Bolin, Assistant Director of HRA SUBJECT: Consider HRA Tax Levy for Taxes Payable in 2007 Since 1996, the HRA has utilized a tax levy to help support its housing rehabilitation programs. The levy is equal to .01.44% of the taxable market value of all real estate and personal property in the City. The 2007 tax levy will allow the Authority to collect approximately $347,053. hi terms of the impact on taxpayers, the levy would cost $28.80 per year for a home valued at $200,000 and $144.00 per year for a commercial property valued at $1,000,000. This tax levy was originally implemented to help fund the HRA's revolving loan program. In 1997, the City made a loan of $1.5 million to the HRA to capitalize the loan fund. In turn, the tax levy was used to make the debt service payments. The principal balance of the loan is now $415,907. The City Council must consent to the levy, at their September 11th meeting, before it can be placed on the tax rolls. As a final note, the HRA tax levy must be certified to the County Auditor by September 15, 2006. Recommendation Staff recommends that the Housing & Redevelopment Authority approve the attached resolution consenting to the HRA tax levy for taxes payable in 2007. Attachment HA— Paul's Documents\HRA \HRA Tax L.evy\Memos\2007HRA Memo (HRA Tax Levy),doc Page 2 — Resolution No. Section 4. Report to City and Filing of Levies. 4.01. The Executive Director of the Authority is hereby instructed to transmit a certified copy of this Resolution to the City Council for its consent to the General Levy. 4.02. After the City Council has consented by resolution to the General Levy, the Executive Director of the Authority is hereby instructed to transmit a certified copy of this Resolution to the County Auditor of Anoka County, Minnesota. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR. THE CITY OF FRIDLEY, MINNESOTA THIS 7" DAY OF SEPTEMBER., 2006. ATTEST: G:\WPDATA\F\FRIDLEY\05\HRA LEVY\DOCS\HRA RES - 2003.DOC 1.5 Loan From City of Fridley Debt Schedule Fund =267 Outstanding Date Principal Interest Total Paid Principal 08101197 34,166.465 35 02-8:62 35,896.4-4 36,793.54 37,713. 510 800 88 23= 24,166:59 24,772. &1- 25,392.4-3 26,026. 26,677.64 27,344. 28,028.4-6 28,728.86 29,447. 30 163:26 30,93794 31,711. 32,504.07 33,316.67 34,149.59 35,003.33 35,878.41 36,775.37 37,694.76 38,637.13 39,603.05 40,593,13 41,607.96 42,648.15 37,500.00 36,645.94 35,770.32 34,872.92 33,953.08 0,00 19,545.77 18,941.55 18,322.23 17,687.43 17,036.76 16,369.92 15,686.20 IA-_985-50 14,267.28 13,531.10 12,776.52 12,003.07 11,210 10,397.69 9,564.77 8,711.03 7,835.95 6,938.99 6,019,60 5,077.24 4,111,31 3,121.23 2,106.40 1,066.21 71,666.46 71,666.46 71,666.46 71,666.46 71,666.46 515,000.0() 43,714.36 43,714.36 43,714.36 43,714.36 43,714.36 43,714.36 43,714.36 43,714.36 43,714.36 43,714.36 43,714.36 43,714.36 43,714.36 43,714.36 43,714.36 43,714,36 43,714.36 43,714.36 43,714,36 43,714.36 43,714.36 43,714.36 43,714,36 43,714.36 43,714.36 1,598 880:88 1,465,833.54 1,430,812. 1,394,916.79 1,359,123. 1 ,320,409. 905,40 7-81,830.74 757,662. 732,889.34 707,497. 691,470:26 654,792.6-7 627,44943 599,419.97 570,691.44 541,244. 511,060.765 490,122. 448,411. 415,907.56 382,590.89 348,441.30 313,437.97 277,559.55 240,784.18 203,089.42 164,452.30 124,849.24 84,256.11 42,648.15 0.00 02/84/98 09/04/98 02/01/99 06/84/99 12=/99 02/01/00 06/04/00 02/01/01 09A84/04 02101/02 08104/92 06/04/03 02M/04 08104/04 02101/05 08/01/05 82/04/06 08/04/06 02/01107 08/01/07 02/01/08 08/01/08 02/01/09 08/01/09 02/01/10 08/01/10 02/01/11 08/01/11 02101/12 TOTAL 1 1,500,000.00 1 466,191.36 1,966,191.35 Payable to: City of Fridley Code as follows: 805,409.86 Principal Principal: 267-0000-255-0000: 5.0% Interest Rate Interest: 267-0000-475-4610: 15.0 Amortization 'Term (years) Desc: 1.5 million loan from city Housing & Redevelopment F Authority MY OF FRIDLEY Date: September 1, 200b To: HRA Commissioners From: Paul Bolin, Asst. Executive HRA Director Subject• Ashland Oil Settlement Due to timing of packet delivery, we were unable to wait for the memorandum being prepared by City Attorney Knaak. This information will be delivered to you early next week. Attorneys of I.;1 1're•c1e•6c W.1Cri mk'c` ( Cram:"cl, 3500 V>r`illciw bake 1T{vd_, Suite 1;00 11. Am Kcaiirud*'* Vaclnais I lei ghts, MN 551 10 r; onalcl W Kolilur 'icleplioile: (051) 490 -90.78 josoph 13. N1a1""Iwil *Also 1,iccrised in Facsimile: (051)490-1,580 1"liomas M.1')oilcty, P.A. Wisemmin c� (.'olouldo + "krcir IN Qrrcrlirc�d AOR Civil Nemral �pr1 (CONFIDENTIAL: � ATTORNEY-CLIENT PRIVILEGED sm- ruwENT ANALYSIS) iD4 &s '1 "O: Scott Hickok, Paul Bolin, City of Fridley UIIt.A FROM: Fritz lti.riaak, Attorney j iU': Miller Colideillnition Settlelnel'it DATE': Scptelllbe" 1, 2006 ,�, m �,,, ,� �.�. -w•• • ,., �w In 1999, as Part of the Gateway redevelopment l�rojcct ill the City, ill(; Fridley DRA 1.i gml cork {crunation proceedings wainst a Valvoline lns ;ant Oil C:lt;}nne site owrlcd by Asihl�lrld () i1, r.tt, wall as a lot owned by one Richard Miller. $35,000 was dcposil.ed with the C{oua for Ow Ashland site, and another $27,000 for the Miller lot. The Ashland parcel was settled at $5;1,00() in 20()1. 1.17at sa),le pr r "[od ,mw the be virntiGrl7 of sb lorry; stol'y of irlaction (m the part of Miller, occ-rsionally lrtrnctuate.cl with coir•csporic'loocc, that rrruJccl i)1 tilo County receiving back, tares for the Miller p-trccl, that it hod tound to Leer laix forli;it, -litd the City receiving back the balalice, Most recently, Mills;r sought to main reopen tlic 171 MOC arrd require the t'ity to pielc conl)nissioners. Miller was seeking an amount substaiiiially n7ure tlrtrrt the City iiLxl ",ct ;t,.1110 initi -tliy Ii7r the; purchase. I have attached the decision tit` the District Caul t in favor of the City ill the ITVAlcr, ciccic}�:al laery,c:ly on (lie btisis or Millor's lolig history of inaction on thu file. I've lal"16ml Jk10VC Morrow's docision ill the CaSC, ill part because its excellent review ofilic. widerlybig, JOCK Smoldering under [lie facts of the case, however, is a lillgoriag gkteslion oc whether the City ob(ained title to the property before or after fhc laic I'olreituru bccmilo ei'l`ectivO, If it okrttitinecl it berore, Millar has all argu vent that lie has a con•ip -ms -able interest. While I Wtitrl(l c ')"t drt(h?c Morrc)w's c- gezllent opinion to be upheld on the alp;llatc level, 10,0rillot I(Asmiro you of illait alli.l ti dislinct at)atigla po5sit>ility exists that the ease would be r4ru-tnelucl sc7 -ts to provide o bask (101 - SC1lleiillC"nt. aivcn that, Miller 11tLs agrecd to accept the amount originally tclidc reel by alley C ±ity, lu s thu mi)(wilt already paid to the County, as full and complete compV'nsatioli For ally a lld all interest 11c play. have~ in tl7e; property. I strongly reconlrnend approval o.) r this -rt;rc t:nI Cl)t. �3 c M 'd BL0600199 'ON XVA Vd GB JNVx QNd XWNx Wd 91: VO INA 9002- 10 —dIS EO 'd I- 11. : 1) .tan; F vow DISTRIC111 COUR11, ST A1'E OF MINNE'SO'YA COUNTY OF ANOKA 1% NTJ 13 U 110(, In to, Matter of Cundomnation by 'flio Housing and Redevelopment Authority in and for Ric City of Fridley, mirilicsota, petlticwu, V. 0RUIPIR Coll it- 11 to: (,'X-99-1013 8 Aslilmid Oil, Incorporated d/b/a Valvoline Instmit Oil Change, and Rielkard N, Miller, et al, Respondent. Tlicabove-entitlod matter came brforc the widw-signed Jod8c orDiAdcl Coutt 013. March. 27, 2006 and May 9, 2006, on Ropondc'Jit's MoLioll to Divoct Cwulllissiuilw-.', to I told llcaiin&4 at the Anoka County Courtliouw. Pcti(ioricr was it•proiwntcd by 1"rodcdc W, Knaak Esq., 3500 Willow Lake Blvd, Suite SW, Vadnais I NIN 55110. Rcspondwt Richard N. Miller wus represented by Daniel N. RoS011 133 First AVUllUe Nodli, IMinucipolis, MN 55401. 'rhe p�w-tiesappeurcd before the CourL on M-o•cli 27, 2006, At tho tical•ing, tho Court allowed the parties to brief the issues fdalier. On April 14, 2006, this Cotut received Res'pondent's Memorandum in'Suppolt of its Motion to Dircut conimissionors to Bold Hearings. Ou May 1, 2006 this Court rcccivcd Putilimer'sRovisod Memonuidum in Opposition to RCSI)ondent Miller's Motion. On May 9, 2006 this Comt heard oral argurneiits and 1110-n allowed the patios to Submit SuppIC111011(al briofs 111) uoffl May 19, 2006. On May 19, 2006, 1bu Court received a letter brief from Roqmildcnt I 8L0606VIS9 'ON XVA Vd MUM GNV M0 Wd 81:V0 INA 9002-10-dIS Richard Mitl.cr. On May 22, 2006, the C:outt r(;c(,Avvd Petitiouor's Sul)l)lcfiu:tital Mcniorandum iii Oppositioa to Respondent Milttc;r's Motioo. This Court tool~ thc; rnai(or ~Cutter adviseni nt ap, o[May 19, 2006. l3ascd upon the argummW of catiosel, all the tiles, records, and pvoeccrliri.Bs licrcin, the C",ourt hereby issues the following: ORDER I. Resporiderit's rnotiort to direct the cumumission rs to held lioarinf;s is 014',N Ul1). 2. Tho attached i em.orandum is incorpoiraLud info this 01-00r. 3. The Court Adiraiiu.strator shall notify tho paetics of ihi.a (odor by aj,idiag copies to the parties' altornys, whoso nauzcs imd addre.ssus ;ipp ,►r abo e, 2 b0 'd BL0606V 199 'ON XV BY T U E CO 11 W l.'; Samos A. Mon o 5v Judge of Disirict C01111 'Ve,nth. Judicial lAstrict dd MUM QNV VVP Wd 61 *0 IM 9004- 10 —dIS MEMORANDUM ilackground in Nomilbor of 1999 the City of Fridl.cy started this Cinid�'llitfaatioit tictic)ci �iy,iin;t Rospondcat Richard N. Mailer and Ashland (ail Ineurpotnied, Sue 11/22/99 Petition. 0ji January 20, 2000 the Honorablo ku-nes Gibbs is ,tied an orclor 911ming I'ctiflooer to (okc: Imti�CCli4�tc �iisscssion ot'tltc prumiscs. See 1%20/00 order. l?urSb ut to 11nit order, Po[itionor deposited with the court $35,000 for tho parcc;l of him] ownod by Rcsl ondc:iit Ashtu id Oil Inc., uod $27,000 for the p;irccl id(;nti11cd as bolon ing, to Ric:lmtd N. N illcr, Additionally, a pancl of commissioners was zippoin(cd to Bold hcarinj;s. 10, Ou May 19, 2001, this Court signed an Ouder whereby Politionur agreed to pay Asblatxt Oil $58,000 as compmsalion for the tAin; of tha A.sliltuitt pared, ,Sue 5/18/01 Order. 'I'he C "ocirt's Circler also stated that the I ivrcl 6t-if7iml.ly owiml by Richard N. Miller was forfeited due to tinpaicl taxes. Id. Ru;,pon eRt Richard MiIIcr wriis not lace,,ui[ at the court licariug; however a notice; (if Filit),g oNudgn ont was 01c;d and .mailed 1u alt Dirties, including Richard iblillcr oii M,,iy 31, 201)1. Oii. Novetiil3t!r 7, :2.001, aUoiilcy Fredric Knaalc appeared in front of the Honorable Donald Vuj,iou on as wo(ioa to relcoso finds. At !tint tinic, Mr, Xnaalc indicawd that lxc Ind spoken to Doidet Rosen who liatd just boon retained, and Mr, KiiaA we,.s willing to allow 1 two wank continti ;3jivo to *111.oty D aoie) Roson nn opportunity to obicat, Nothing was done by Richovil !Miller or bis altonley at that time, Finally after Four yeav; Ilw .Atiol a Comity Coict l Adminii;tre (or St•tat st letter to the City advising thein tlast i f the fintcls weu-e )lot distRur ,act, they WOUld 1)06,011t, to tltc State of Mijuicsota m unclaimed property, See 5 /3 /05 Lc.tt(;r. 90 'd BLO606PI99 'ON XH Vd Q[]N1,M GNV XVdNN Wd 61 60 IMA 9002- 10 -d]S 0o August 19, 2005 the Petitioner n3ovl:d the COW t for an orcic;r di$bimshig lllo rcmaining fulids field ill relatiola to this property. Sec 8/19/05 Motion. A hearing on Alts Motion was sc:hettuled for Septombor 19, 2005 however the ll,uarin„ was cuiltillaccl numerous tunes due to attormy Thiliel Rosell;'s schcdufe. Oil October 1, 2005, tllc district court signed mi order disbursing lilnds to the City of Fridloy and slaye d untly of the ol+ cr for two vvecfcs to allow Rcspoudent tulle to bcin;; a motion to ccmicst disimrL.miont of (iyu funds. Scc 10/3105 Order. By letter dated. October 5, 2005, Attorlluy Fredrick Knaalc for the City of Yrikliq scut a letter to attorney Danicl Rosen inl'orining, him that an order dkbul,siltg Rinds Nv,os, si gn.ed and that the order was stayed for a two v. ccic poriod to al low lac„ Ironcl.oW liuw- to object. 5cc 10/5/05 Lettcr. A copy of "the order was salt from Court J druinistr;ltioll directly to RiQhard Miller. See 11/29/05 letter. This leper was relmmod to senclar on Novomber 29, 2005. id. At this point Richard Miter dirt not bring deny n- lotions Mme tho court, and did not appeal (1-le order. Oil March 22, 2000 the marl TccQ.ivod lZospondont R.1chald filler's 1,1otice cif .iti�[c�tioll a1u1 Mntiolrt to T)irvct Coillmi�;siorlers [o Vold �le,nilag5, 1'ctitialier c >Iljc;cl5 lc► (iris 111060/1 Stl UM [flat 1.11C Irlpti011 iS UT1tilrlCly. Pctikuricr further aSSct.t?i (fie dC olrille of 1 f1ehC8. i4luln. R. Civ. App. Proc. I04,01 1006 "Ali appoat maybe taken from a judgm .nt wit1iin 60 days after its entry and from �1n appealable orcicr�vitlliil fa0 days after ser-vicc lay ,guy party ofwli[tci1. i)o0CQ of its lilh3g." Minla. R. +Civ. App. Proc. 104.01. 2 90 'd 9LO606VI99 'ON XVd dd MUM M XdVNX Wd 61 *0 INd 9002- 10 --ES 011 May 18, 2001 the Hal courtsip)Ied an order ,;(a Chi(,, by Diehard Mi I I ci-wastakcii by lax foileituro.A notice of Filing of Judgmetit-wwq it jailed to the parties un May 31",2001. Aftcr this Filial judginell I was cillcred Rjcll�jvd Miller (lid nothing. On OcLober 3, 2005 the coml stayed -,)ti older disbursing fun(h, f6t two Nveclos. A craju, alter 1-cociving notice of they Oc(obcv 3, 2005 order, Rich.irtj Mille.l. (lid 110111ilig, Ouly in March of 2006 did Xespondout file a Motion with the court. Pursuant to Mint). R, Civ, App. Proc. 104.01 Richad Miticr had 00 days in whik:,h to appeal die order, Richard Miller (lid not do so. The propei ty owricki by Respoil(kiiL Miller has been tax forfeited and Mr. Miller has no interc,81, in 1.110 propcily at this lill'IQ. RcspondQuit argues Mat the property was riot tax forfeited and tk;re is no way ibr Petitioner to prove the property %va.,; tax (6rA-,itc,,(fAf Respondent opposed Iliciudgiucat and wanted to iLiscrL that the property had not Inco tax forkitod th� tiny; lo do w was within 60 days of the May 31, 2001 order. Respondent ((!(I not do so. M ordus ;and jud-inuits by [tic court arc final and the tinic to ,ippal thum has cxpircd. zj Laclie" The doct6no of Caches depends ou a fadual dctornihial--ion in each casc% The basic question is "whetlicr flicre has becti such an wizeasonablo delay in ;tsseulijiv- i knomi right, rcstilLing, in prejudice to otlictS, 4S IVOILIld inake it inequitable to gpirit the volief prayed for." Y I apill. ciT,X.Town Center of Crow Wip_gCql% y, 346 N,W.2d 133, 436 (Minn. 1984) (citing 1 ?ctscfi v. ljolin, 52 N,W.2d 113, 115 (1952)). The purpose of tactics is to "prevent one who has not Wen diligent in a.swohig it known light from recovering at the expense; of otic wbo has bow prejudiced by tho dolay, Aronovitch v, Logy, 56 N,W.2d 570, 574 (1953), Farther, "[c]vidoucc Of Pl'rjLI(IiCC il, 1101 3 LO 'd 8LO606VI59 'ON XH Vd MUM GNV YVVNN Wd 6 1:VO MA 900 -10-dIS always essel,tial to the application of ladles, it is a circl,m.st;utcc or import,m)w ill deterruining whether ,i [person's] delay was wwsonablc." Kia mpcier v. Tawr7 t, e.nicr or C o Wing, 346 N.W.2d 133, 137 (Mimi. 19£i �1), (citbig j�roltovitcit v, l. ; 56 N,W,2tl 570,574 (Mi1,n.1953)). Respondent argues that the law provides tlldlt W11CW Ml 0XI- 11 -USS sf(ltutc t ovctUS t1 matter., tho doctrine of la,chw does not apply. Rcspomhl i,t cites M.A.D v. 11.1, for this proposition, 277 N.W.2d 27, 29 (Mi1t.u.. 1979). Ill M.A.D. v.,a'.R, t1w i.14SLIc is .1 paternity action which was governed by a. statute limiting ft fatht:r's flub lily For illegidmatc children to fora- years. The court it, That ease stated,, "[Ilt reflects the guile legislativc coticcm as would all ordiltary 91"itutc. o(' limitations that the lcgislaturc has considered the tic;sirability of protec:liltg trio dct6whint froth liability over alt ex(cmdi,d (ime.period and je,,,o1vcd the rllattvr ljy a statulory provision. Thus laclws is not available as a doroltsc to tt p %tt(jrllity action," Respondent states that Mimi. Slat. §117.)25 is dw. gove nl ng sLotolo in this r,,rsu zuu,1 therefore lachos does not apply. However, there, is Ira spccit7c. provisioll inMi,l }r. S(at. §117.025 that gave ros a time period or re olvc•s the matter of time by st ;AtAoly provision instead of laches, Additionally, Respondont has riot citcd a. specific prvvl,::101) govuming atimc period to this Court.'11lcrefc-rQ, this Court t11111S (11,4t hCl1,8 is fill available delciuse hi Lhis action. Rcspow1ciA lkichard Millar further argues that laclrcs is only assortcd rvbon lhao is delay is coilm encing an action. The dtic(rim of lacllcs is 11ot limitod to it dday ill Cot111'nonciog all action. "Lacllcs in a ,Seneral SC11Se, is SUCll itC;glt ,l'(1Gd E11 briii-bijy an action or othe:r-rrisc asserting one's right as will preclu& him tx•om oblaining cquitablo, relict." Lloyd v. Simms, 105 N.W. 902." (cnlph:isis c4(kd). FAI 90 'd 9L0606fi 199 'ON Xdd Vd Q1lNINVN QNV WVNN Wd 0b0 INA 90H- 10 -d1S Throughout those procecdhigs Respomh fit, altllou�rh rn>t illwa,y,5 prusuil at llcrutinc;5, tiVas always !lc) titled. RC ;pOtidCilt 1115 lint provldcd I I A (I "ouit a ullf(iC1G1 ►t fCilrUtl for the delay. At a) I titncs duritig the pvocccdinr;s Respondelit w<7;; iI, founuc! .111+4 at t ►a Ume dill he assert his ilghts. Furtl3c;r, tho City ol`Fridicsy leas 40111itluut ►sly sQt►t ►lUfluCs illu Respondottt's altorncy Daniel Rosin, On 5uptembcr 19, 2005 a hearing; was ,.apposed to be hold mi' lltc motr'ur1 Ilow"Ver Respondent was grautcd u1.1111,rous coniinuaticc;5 duo, to cot1(Ticts. Oti Octob�,r 3, 2005, an order disbursing money was sig,ued but stayed for 2 mc-.U. Iter;poudeut dial taot brute; a motiot► within two wecks, rather whited a►i txlditional six months- This C mart botievcs that the City has bccn projudiccd by RQspondvtit's iuic0oo. The City leas continuously attempted to l;eup Rcspoiid((nt informed 01rougli.outtliccsc lxocccdiop, Furtlicr, ,since so inuch tinic h-ts tapscd tr my ivitne,, -,,,uK mid cmptoyc("s wot►ld be unavailable and the city would havo P) rcomploy appritkt.rs tm(t invc;;ti ,stars. C.ollel►isiola This Court rinds that dik; matter is ilroot as a result of Mimi, R Civ. App. Ilmo. 104.01 and th4 doctrine. ofLaclies. The Court fourul its 2001 that Mr. Millur's pjvg)c.ity was lax forfciicd, At that time, a notica was scut to Hichurd Miller. De)'emhmt Richatd Miller did nothing. On October 3, 2005, 1110 court stityed tho order clisUursiug (lie fttttcls for two wecks, At, Us time Richard Miller did oothing. 'Mis Com-t will text enterlain a motion that should have been brought 5 years as,,o. Therefore, RQ,,ipoudcrtt's Mutiott (o Direct Cot1ll issio17ers to Hold Hearings is clot; }icd. [J.A,.M. Rinc'l, 2006] 5 60 'd 8L0606VIS9 'ON XVJ dd QI1N1,NEt}I W XVVNX Wd 0VO IM 9002- 10 -dES SEP -07 --2006 THU 11:03 AM KNAAK AND KANTRUD PA FAX N0. 6514909078 X antrud, P.A. Attoracys at Law 3500 Willow Lake Blvd., Suitc 800 St. Paid, MN 55110 `l'efcphono (651) 490 -907$ Yax (05 1) 490 -1590 'AC ;IMTLf', COVER SHEET m d;�rltl`itic�ttiaality Nolicc: Tho cicct1mcilts accompanying this fax contain cc1t� %itlontial infnrilltttiotl w17ie11 is legally privileged. The itlfic7rtrtation is inten(loci ()Illy fc)i' the use. of the below- describ d recipient, If you are not that person, t1lon You '01•0 1101,01)y notirlod that any disclosure, copying, distribution, or the taking, of ,,Illy zletiklll ill rclialyct' oil the contents of this telecopie'd information except ill its riirixt dcltvery to tha, int4`t141C'`d recipiont named (Clow is striotly prohibited. If you It,ivc received this fax it1 error, pleme notify us immediately by telephone or Sa�a4ata {;�� 1,61, rcwrn of the oripilial doctiment(s) to us. Thank yoia. TO: City of Iiridley AT'I'N: Paul Bolili I? Isom: Fritz Kwaak 1)A"iT?: Septet bor 7, 2006 IZI;, 1-ridley v. A'Shi artd C)i. NUMBER ()I" P/ i1?,S INCI UDING THIS PAGE: 3 VAX N UNf1'3IIR: 763- 571 -1287 PHONE NtJMBER: Ml1SSAG1'1,: If yott 1:XFQ60)1Q'(! mly probloms Willi the dual ity of this fix, please call its at (651) 490-9078, ()III' 1'nx izt1t1ahOr is 40-1580- SEP -07 -2006 THU 11:03 AM KNAAK AND KANTRUD PA FAX N0. 6514909078 P. 02 Sepietn1wr 1, 2006 Mr. Froderic W, Knnal,: l;:NAAK & l<:ANITUID, P.A. 3500 Willow 1 IDoillevard .;Ililo 800 Vudnui; llcilalw, M1�1'SS1 10 1�e: (:'ity cal Fridlcy v. Ashland Oil, Richard Miller, et al. ('d'art File Nu, CX-99 -10 t38 Our File No, 0:590 l oa, F ri t Z: l urIr uanl to the se(tlement rc�►clhcd between the City of I ridley and Rich, -ml Mill,:r in IhQ above- refererteed (patter, enclosed and delivered to you plc °u, find the Raley s,� exccolod by Riclusrd Miller. ri'17i . Belcaw, is delivered on the condition that the Releat c: in inoffective,, uttic.8S ilfid (111th YOU d0liver to me the oity':; chock, Ivoyable to Mr. Mille.r, in the al- nount of $ 12,230,73. A 1iNR/sMl m l? SEP-07-2006 THU 11:03 AM KNAAK AND KANTRUD PA FAX NO, 6514909078 P. 03 17:07 512, 67a,',01 PAWER RIQ�Z N LLC PA61- 0121 U7 1', CON -�sjcy of which is jv-,mby ,,,IDERATION -le re.0eipt =d Sj(rjcjL POR VAIMAM -, A , j., 0rfjcyjt f,.; owj or of fl- e propmty described ass� All (if W8 5, 6 and 7. Block 6, City View Addition, Anoka COIM'Y' MIWe-s0Q" jA &anion rmjfled 011 cf Ft?*Sley V, AA10141 Oil, 0 at, Court Fill-, No- CX-99- , City of FrijIley f)ro,�) any anti all clEajvas arising oars of or related to ioi,13, hcreby vAcu,,(�s tl!,, k 'duv A Millar Aw AGENDA ITEM r HOUSING AND REDEVELOPMENT AUTHORITY CITY of September 7, 2006 FRIDLEY TO: WILLIAM W. BURNS, EXECUTIVE DIRECTOR FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR DATE: SEPTEMBER 1, 2006 RE: RESOLUTION TERMINATING ICMA AS THE ADMINISTRATOR OF THE FRIDLEY HOUSING AND REDELVOPMENT AUTHORITY'S (HRA) DEFERRED COMPENSATION PLAN AND AUTHORIZING THE HRA THROUGH THE CITY MANAGER, TO ENTER INTO NECESSARY AGREEMENTS TO HIRE WELLS FARGO, N.A. TO ADMINISTER THE PLAN The attached resolution effectively terminates the relationship that the HRA has had with the ICMA Retirement Corporation in regard to the HRA's employee and the administration of the 457 Deferred Compensation plan. This termination is part of the change that was reviewed with the City Council during the Conference Meeting of April 17, 2006. The City and HRA Staff, after interviewing three different providers of similar type plans, recommend Wells Fargo, N.A. be approved as the new provider of the Administration and the Trust related services associated with the continuation of the Deferred Compensation Plan for the City of Fridley and the HRA. Financial Concepts Incorporated will be working with Wells Fargo to assist in providing direction for the City and HRA in conjunction with its 457 Plan. Financial Concepts will also assist the City and HRA in regard to the work of the investment committee and also assist the employees in making investment choices within each employee's portfolio of investments. The attached resolution will provide for the following actions: 1. To tenninate the relationship with ICMA Retirement Corporation and to initiate a new relationship with both Wells Fargo and Financial Concepts, Inc. in conjunction with the continuation of the City's and the HRA's 457 Deferred Compensation Plan. 2. To provide the Executive Director with authority to sign the restated 457 Plan documents. Staff is recommending the approval of the attached resolution. 1 ' pow RESOLUTION NO. 2006-_ RESOLUTION OF THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY TERMINATING ICMA AS THE ADMINISTRATOR AND TRUSTEE OF THE DEFERRED COMPENSATION PLAN AND AUTHORIZING THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY, THROUGH ITS EXECUTIVE DIRECTOR, TO ENTER INTO NECESSARY AGREEMENTS TO HIRE WELLS FARGO, N.A. TO ADMINISTER THE PLAN WHEREAS, the Housing and Redevelopment Authority (the "HRA ") has, for over six years, sponsored and maintained a deferred compensation plan (the "Plan ") for the benefit of certain employees of the HRA; and WHEREAS, the Plan has been administered by International City Management Association (ICMA) and ICMA has served as the trustee with respect to the Plan; and WHEREAS, the HRA has determined that the Plan has not performed at a level adequate and appropriate for the benefit of all of its affected employees; and WHEREAS, the HRA has undertaken an active examination of alternative service providers for the purpose of continuing its practice of providing a deferred compensation plan for the benefit of certain employees of the HRA; and WHEREAS, the HRA has determined that it is in its best interest, and in the interest of at least a majority of the aforesaid affected employees, to terminate ICMA's services and to replace ICMA with Wells Fargo, N.A.; and WHEREAS, the replacement of ICMA with Wells Fargo, N.A. will require amendment and restatement of the Plan document and trust agreement; and WHEREAS, Wells Fargo N.A. has submitted to the City of Fridley a trust agreement for the purpose of administering the Plan for the City of Fridley and the HRA; and WHEREAS, Wells Fargo N.A. has prepared a restated and amended Plan document; and WHEREAS, the City and the HRA wishes to encourage a more active supervision of the Plan by the creation of an "Internal Investment Committee" that will include representation from the management and affected employees of the City and the HRA; and WHEREAS, the City wishes to engage the services of Financial Concepts, Inc., as the Registered Investment Advisor and education consultant for the Plan. NOW BE IT, THEREFORE, RESOLVED that the Housing Redevelopment Authority shall remove ICMA as a trustee with respect to the Plan and will cease to use ICMA services with respect to the Plan; and BE IT FURTHER. RESOLVED that the Executive Director be directed to take any and all steps necessary to effect the termination of ICMA's services on behalf of the HRA; and BE IT FURTHER RESOLVED, that the HRA approves appointing Wells Fargo, N.A. as a trustee with respect to the Plan; and BE IT FURTHER RESOLVED, that the Executive Director is authorized, on behalf of the HRA, to execute any and all necessary documents including the Participation Agreement, referenced as Exhibit A, to implement an amended and restated Plan, including, but not limited to, the amended and restated Plan document; and BE IT FURTHER. RESOLVED, that Financial Concepts, Inc., is hereby approved as the HRA's consultant and financial advisor with respect to the Plan. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS 7TH DAY OF SEPTEMBER, 2006. LARRY COMMERS, - CHAIRPERSON ATTEST: DEBRA A. SKOGEN — CITY CLERK 10.14Ui. Y17_1 FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY PARTICIPATION AGREEMENT IN THE CITY OF FRIDLEY DEFERRED COMPENSATION PLAN AND TRUST Effective October 1, 2006, the Fridley Housing and Redevelopment Authority (the "HRA'), by executing this Participation Agreement, elects to become a Participating Employer in the City of Fridley Deferred Compensation Plan. Inasmuch, the HRA agrees to be bound by the terms of this Plan until such time as either the City of Fridley (the "City ") or the HRA determines that this Participation Agreement shall cease, or until such time as the Plan shall be terminated by the City. The HRA agrees to be bound by any amendment that shall be made to this plan by the City. For its part, the City agrees to permit the HRA to become a Participating Employer in this Plan. The City furthermore agrees that all participant accounts that were in the HRA's Code Section 457 (b) Plan prior to October 1, 2006, shall be transferred into the Plan and maintained as Participant Accounts for the Employees of the HRA. The undersigned hereby consents to the course of action specified in this Participation Agreement. FOR THE FRIDLEY HOUSING AND FOR THE CITY OF FRIDLEY, MINNESOTA REDEVELOPMENT AUTHORITY X DATE PRINT NAME, TITLE X DATE_ PRINT NAME TITLE A - 7V Housing & Redevelopment ri Authority MY OF FRIDLEY Date: September 1, 2006 To: Dr. William Burns, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subiect: Gateway West — Update Much progress has been made over the past month and the most recent photos will be shared on Thursday night. The street and utility work is progressing at a fairly rapid pace and may even be complete by Thursday. Staff has not received any concerns or complaints about the work that is taking place. The new fence line was recently staked by the City's Engineering Department and after some "adjustments" was granted MnDOT approval. At this time, the fence contractor is in the process of putting in the footings for the brick pilasters. The tree clearing and grubbing only resulted in one phone call of concern from an adjoining property owner. When it was explained that MnDOT required that the new fence be placed closer to the existing fence, the property owner stated that they understood that some things were out of the HRA's control. Blueprint has been busily working on the first three homes and is working on plans for two more homes to be built on the two southern-most lots of the northern project area. Staff anticipates a closing on these 2 lots within the next 45-60 days. City Attorney Fritz Knaak reports that he and Kurth Surveying are getting very close to completing the title work needed to record the 2nd Addition plat for Gateway West. Attorney Knaak recently reviewed a number of the issues with the Anoka County Examiner of Titles and reached some agreement on the remaining title issues. He anticipates having the plat issues cleaned up and before the Council for final approval at their September 25th meeting. Fridley HRA Housing Program Summary Cover Page September 7, 2006 HRA Meeting Report Description Loan Application Summary Loan application activity (e.g. mailed out, in process, closed loans) for July, 2006 and year-to-date. Loan Origination Report Loan Servicing Report Remodeling Advisor & Operation Insulation Loan originations for July 2006 and year-to-date. Loan servicing by Community Reinvestment Fund (CRF) for the month of June 2006. 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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C-) L co LO co iri Fridley HRA Loan Origination Report August 31, 2006 Loan / Grant Originations Types of Improvements Interior # of Projects % of Total Bathroom remodel 3 This Kitchen remodel Previous 3% General plumbing 2 Month Heating system Months YTD Loans Issued 2 7% Basement finish 7 7 Deferred Loans Issued 2 Room addition 3 5 Misc. interior projects Total 2 Exterior 10 12 Funding Sources 4 13% Roofing 4 13% Windows /Doors 3 This Garage Previous 0% Driveway /sidewalk 1 Month Landscaping Months YTD Fridley HRA $ 20,000 $ 134,783 $ 154,783 MHFA $ - $ 49,000 $ 49,000 Met Council $ - $ - $ - CDBG /HOME $ $ - $ - CEE $ $ 8,145 $ 8,145 Other $$ $ - $ Total $ 20,000 $ 191,928 $ 211,928 Types of Units Improved This Previous Month Months YTD Single Family 2 10 12 Duplex Tri-Plex 4 to 9 Units - - 10 to 20 Units - 20+ Units - Total 2 10 12 Types of Improvements Interior # of Projects % of Total Bathroom remodel 3 10% Kitchen remodel 1 3% General plumbing 2 7% Heating system 4 13% Electrical system 2 7% Basement finish - 0% Insulation 0% Room addition 2 7% Misc. interior projects 1 3% Exterior Siding /Fascia /Soffit 4 13% Roofing 4 13% Windows /Doors 3 10% Garage 0% Driveway /sidewalk 1 3% Landscaping 2 7% Misc exterior projects 1 3% Fridley HRA Performance Report August 31, 2006 Loans 50 7 Loan Volume $625,000 $ 103,770.00 Origination Fees $27,500 $3,850.00 Inspection Fees $7,000 $ 2,080.00 Admin. Subtotal: $34,500 75,930.00 14% 17% 17% $521,230.00 Loans 20 5 25% Loan Volume $200,000 $48,413.00 24% $151,587 Origination Fees $11,000 $2,750.00 Inspection Fees $2,800 $0 $13,800 $2,750.00 20% All Programs $5,000.00 $3,154,53 31% $1,845,47 V ♦W^ v L. 0 e� Q 0 E LL 0 tQ cfl O to O � N M Z Q tq LM CL CD U. 0 a c 'c a� CD E Z = a — co O M N Lo N M O O O O m CL Q E S �- (o m M N U) N M 0 0 O O M G. Cl) Q U) E as QU a c a Q) E 5 0000< --0 - r -000OM c � Q N a L L L Q) Q) .Q N a) y_ .0 M � E E to E .Q E E o U _a C� - a cu � Q��Qa)OZ0 5 �' o m �u_. U) E as QU a c a Q) E 5 0000< --0 - r -000OM c � Q N a CD to M to O :3 O C7 � C9 c Q o CD E c O O. CL il 0 N M N T- O :3 O a� E c 0 Q. Q. El L L L Q) Q) (u (n E E c c L L a� n> U .n c cu a) -� LL :2 Q (n 0 Z 0 CD to M to O :3 O C7 � C9 c Q o CD E c O O. CL il 0 N M N T- O :3 O a� E c 0 Q. Q. El FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY September 7, 2006 1. Islands of Peace Update Mr. Rudolph, an investor from 1\0 Valley, CA appears to be moving forward with his plans to convert the apartment buildings into condominiums but at a much slower pace. Staff has heard that Mr. Rudolph has not been keeping up with his payments on the properties and recently defaulted on his $750,000 balloon payment required in his purchase agreement for 151 Island Park Drive. Mr. Rudolph did call last week and inquire if the HRA would be willing to purchase a few of the properties and he would then buy them back "next spring". I explained all of the legal and political problems this would create and that staff would strongly recommend that the HRA not form any type of a partnership with Mr. Rudolph. 2. Cub Foods Site You may recall that Holiday Companies had been moving forward with plans to redevelop their site on 57`h Avenue. Much to our chagrin, Holiday is 'instead selling the property to a group called Tti-land Development from Illinois. Based on the portfolio of other properties Tri-land owns (mostly older outdated strip shopping centers) staff is worried tliat redevelopment of the site may not happen in the near future. As discussions with these new owners progress, I will keep you informed. 3. Old Van-o-Lite Building City staff recently met with a church that is looking at moving into the original Van-o-Lite building located at 6030 University Avenue. There are a number of building and fire code issues that would need to be addressed prior to changing the buildings use to allow assembly space. If anything progresses, staff will keep you informed. If there are any items you would Like covered in upcoming issues of the Non-Agenda Update please send me an e-mail. bolinp@c1.ffidley.mn.us Ffl