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HRA 09/07/2006 - 29603�, CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY SEPTEMBER 7T", 2006 CALL TO ORDER: Chairperson Commers called the regular meeting of the Housing & Redevelopment Authority to order at 7:30 p.m. MEMBERS PRESENT: Larry Commers, Pat Gabel, William Holm OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Scott Hickok, Development Director Richard Pribyl, Financial Director/Treasurer Mike Jeziroski, City Accountant APPROVE OF MINUTES: 1. Approval of August 3, 2006, HRA meeting minutes MOTION by Commissioner Holm to approve the minutes as submitted. Seconded by Commissioner Gabel UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNAMINOUSLY. CONSENT AGENDA: 1. Approve Expenses MOTION by Commissioner Holm, to approve the expenses as listed. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNAMINOUSLY. ACTION: 1. Approval of Tax Levy for taues payable in 2007 Paul Bolin, HRA Assistant Executive Director, reported that since 1996 this levy has supported the Housing Rehabilitation Program in Fridley. This levy was used for payments of the $1.5m Ioan given by the City for the Revolving Loan Fund. The current principal balance is $415,907. Staff recommends approval of this Tax Levy for taxes payable in 2007. MOTION by Commissioner Gabel, to approve the Tax Levy for taxes payable in 2007. Seconded by Commissioner Holm. � UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNAMINOUSLY � 2. Approval of payment to Ashland Oil for quick-take condemnation. Scott Hickok, Community Development Director, reported that this is incorrectly identified as the Ashland Oil quick-take condemnation. This started with the Gateway East project when property was acquired from Ashland Oil and Richard Miller for roadway purposes. Ashland Oil settled for $58,000 in 2001 and Richard Miller failed to settle. Mr. Miller did not actively work towards settlement until March of 2006. Mr. Miller had let the land go tax forfeit. In spring of 2006, Mr. Miller petitioned the County requesting an additional Commissioners hearing and was denied by Judge Morrow in June of 2006. City Attorney Knaak recommends the HRA pay Mr. Miller an additional $12,230.73 to be released from any further actions by Mr. Miller. ' Mr. Hickok stated that Mr. Miller did not respond in a reasonable amount of time. We had put $27,000 aside from funds to go towards the purchase of Mr. Millers property. Some of the $27,000 was used to pay back taxes. The $12,230 payment request represents the remainder of the $27,000 that was not used for back taxes. Staff recommends this payment so Mr. Miller will no longer have a claim against the County. Commissioner Holm stated that he was confused of exactly where the Miller property was located. Mr. Hickok did not have a plan view of the property but explained that it is just east of the Ashland Oil site. The Miller property is precisely where the road is currently ,�—� developed. Prior to purchase Mr. Millers property was totally undeveloped land. MOTION by Commissioner Gabel, to approve the payment of $12,230.73 �'or quick-take condemnation. Seconded by Commissioner Holm. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNAMINOUSLY 3. Approval/Authorization to move 457 Plan from ICMA to Wells Fargo. Richard Pribyl, Finance Director/Treasurer, stated that over the past six months, the City of Fridley employees and HRA have been seeking to move the employee deferred compensation retirement plan to Wells Fargo. The individuals have not been pleased by the performance service offered by the current provider. (ICMA) Wells Fargo offers more choices and provides more services. Staff recommends concurrence with Council and approval of the attached resolution. Chairperson Commers questioned if he was correct that HRA is a separate entity and has a separate 457 plan. Mr. Pribyl answered that is correct and the current plan would roll into the same plan but would be a separate entity wrapped into a common plan. Chairperson Commers asked how many active/inactive members there were with �` ICMA. Mr. Pribyl answered one. Everyone else has transferred their plans out of ICMA. The ^ Wells Fargo plan would be identical to ICMA. MOTION by Commissioner Holm, to approve/authorize the move of the 457 plan from ICMA to Wells Fargo. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNAMINOUSLY INFORMATIONAL ITEMS: 1. Gateway West Update Paul Bolin, HRA Assistant Executive Director, reported that last month they expanded the Mill and Overlay project between the two sites. The bid was approved for $32,136 and the project cost was only $8,000 so a lot was saved on that project. Kurth Surveying is actively working on the final plat for Gateway West 2"d Addition. They are also working with Attorney Knaak on final title pieces. Attorney Knaak met with the Anoka County title examiner on the final plan and they have another meeting scheduled next week to work out the last of the issues. We plan to submit a final plat before the City Council at their September 25�' meeting. Mr. Bolin stated that currently there are three homes under construction and some agreements with private parties are in the works on the north end. We should see this under construction in the next month. They are working on new curb and gutter work �, and asphalt will follow. Photo's were shared of the progress on the project. Mr. Bolin stated the utility work is complete but was tricky as with custom homes they are not always sure how the house will sit on the lot. The contractor worked with the developer and did come up with a spot for installation. The fence has also been a challenge. The old fence is down and they are staking up for the new fence. They tried to install the fence where they would not have to cut down any trees. They have only heard from two neighbors regarding the fence, one to keep the trees, one to take them down. Next month the brick will go up for the fence and the project is expected to be completed by October 10�'. Commissioner Gabel commented that the fence project seemed more complicated than the street project. Mr. Bolin agreed that the fence project was complicated as the land is not exactly parallel to University Avenue and there are odd angles and elevation problems. Scott Hickok, Development Director, stated that he has heard compliments from people who are pleased with Paul Bolin and Mr. Bolin's field work on this project. Paul is out on the job every day meeting with Contractors, MnDot, Blue Print Homes, Engineering Surveying Crew etc. Paul has been watching this project very closely and overcoming any obstacles that have come across the path. Mr. Bolin said that Ray Statler and the City Engineering Department have been good to �..1 work with and they have been on top of things. 2. Monthly Housing Report � Paul Bolin, HRA Assistant Executive Director, reported that in August we did not close on standard revolving loans. There were two closings on deferred loans. This may be a sign of the times with interest rates raising so we may see more deferred loans. For the year we have given out 12 HRA loans which 5 have been deferred loans. This may be a trend we continue to see in the future. Mr. Bolin stated that overall YTD we have closed on 17 loans. We continue to see housing activity and people reinvesting in their property. The loans issued have all been to single family home owners. We do offer loans to small apartment owners but there is no interest from those owners. Most of the loans are used for siding, roofing, windows, heating and electrical systems, bathroom remodels etc. They are for very basic and necessary needs. Mr. Bolin reported that the revolving loan fund budget was 50 loans for a total of $625,000. Year to date we are at $103,000 so we have a ways to go for the year. The deferred loan program had a budget of $200,000 and we are at $48,000 year to date which is 24% of our goal. The remodel advisor services are popular and there were 3 appointments completed in August. Commissioner Gabel noted that the aging report for the month was missing from the packet. Mr. Bolin answered that it was just received today. There was 1 loan more than 30 ,�� days past due and 2 loans 60-90 days past due. This is still less than 1% of the portfolio. The principal is approximately $34,000. 3. TIF Assistance for Industrial Equities Paul Bolin, HRA Assistant Executive Director, reported that Mr. Allen of Industrial Equities recently purchased the former Guardian Building at 5110 Main Street. The purchase price was $2,250,000. Mr. Allen anticipated high demolition and soil correction costs and would like TIF Assistance. He is proposing to construct 240,000 square feet of new warehouse/office space on the site. The HRA Attomey Cassery is still waiting for additional information from Mr. Allen and anticipated bringing this before the HRA as an action item in October. Mr. Bolin stated that there will likely be high costs as after the 1965 tornado the Guardian Building had a lot of debris on the lot and most was buried on site. It is not sure what the product was but it was probably extra shingles etc. so there may be high soil correction costs. Chairperson Commers questioned if it was the obligation of the former owner to clean up the site. Mr. Hickok, Development Director, stated that was a good question. The land value may reflect clean up and demolition costs. The purchase price may have something to do with the clean up that was needed on site. Mr. Allen anticipates asbestos, even �,..� though this is not a hazardous or contaminated site, deconstruction and soil correction will be costly. � Chairperson Commers questioned if Mr. Allen has submitted a final application and paid the fees. Mr. Bolin replied yes. Mr. Hickok stated that last night at the Planning Commission, representatives for Mr. Allen were present with a request for a plat. They purchased 10 acres from BNSF. They will have a total of 12 acres and plan to complete a 240,000 square foot building on site. The City allows up to 40% of the site for construction, and if they build a 240,000 square foot site they would be at 43°/a so they may be needing a Special Use Permit. Mr. Allen takes pride in owning industrial portFolio's and does a nice job with his properties. We can only expect the same with this project. Chairperson Commers questioned if the Special Use Permit needed to be approved before City Council. Mr. Hickok replied that currently they are working with two prospects. He wasn't sure if finals plans were ready to be submitted. OTHER BUSINESS: Park and Ride Area in Fridley Commissioner Gabel questioned the park and ride area in Fridley and if they were ,� losing out on the opportunity when the light rail comes. She questioned if there was a potential to get that land back. Mr. Hickok replied that he is staying optimistic. Recently there was a conversation that the rail would be up and running in 2009. This is $9.7m project and the project is the most expensive because the site is closest to Minneapolis. Many people will use this lot to leave their cars at the park and ride site. The issue of purchasing the site may be better to discuss in the future. Staff cannot commit for support at the local level and the purchase of the property has been negotiated. We know the market value and that is only one entity of the $9.7m. Chairperson Commers asked if there was a budget for the $9.7m and if so, could that be included in next months packet. Mr. Hickok answered that he would do what he could to get the budget in the next packet. Commissioner Gabel asked if we own the land and who has most control. Mr. Hickok stated that this is controversial question. It goes far beyond zoning, we can ask the Rail authority to buy the land but the entire site is not developed for the rail station. The trade off investment is good with the development. The key is to stay optimistic that the rail will be up and running in 2009. Chairperson Commers commented that the station will generate revenue. Mr. Hickok answered that if we own the site, the Federal transit authority owns the ^ infrastructure, parking lot and platForm. Others would own the land around it. Chairperson Commers questioned if the $9.7m included the land around it. Mr. Hickok replied that sellers would sell all or nothing, not just what is needed for the infrastructure. This has been a good discussion and I am sure it will continue in the future. ADJOURNMENT: MOTION by Commissioner Holm to adjourn. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED DECLARED THE MEETING ADJOURNED AT 8:28 p.m. Respectfully Su6mitted, ������� � Krista Monsrud Recording Secretary i"� n i � /"'� �"°' CITY OF FRIDLEY SIGN-IN SHEET HOUSING & REDEVELOPMENT AUTHORITY MEETING �'�,.���'�� Z�(� ______________________________________________________________�___________ � Name and Address Agenda Item of Interest