HRA 08/09/2007 - 6211August 9, 2007
HRA Meeting
Regular Meeting Agenda
7:30 p.m.
� City Hall, Council Chambers
Call to order �
Roll call. Ui1 61 L C-, ) S .6 ) -�- M ( t& a )
Action Items " Je-2-
1. Approval of expenditures �'r (-/ tj N IR4� A-
2. Approval of June 7, 2007 Meeting Minutes W tt l j-M 1 A : Pc
Informational Items
1. Housing Conditions Study
2. Gateway NE Update
3. Northstar Rail Station Update
4. Monthly Housing Report
Adjournment
H:\–Paul's DOCUmentsWIRA\HRA Agenda Items\2007\August 2, 2007\August2 -2007 Agenda Outline.docM— Paul's
DOCUments\HRA\HRA Agenda Items\2007\August 2, 2007\August2 -2007 Agenda Outline.doc
DATE: August 2, 2007
TO: HRA Commissioners
FROM: Laurel Tracy
SUBJECT: Housing Survey Update
Using a systematic approach developed by the Fridley Community Development
Department staff, the exterior condition of all houses in Fridley have been rated and
assigned an average condition score for the Fridley Housing Conditions Survey. Each
house received an overall score based on an average of five rated components: 1) roof,
2) soffit/facia, 3) siding /paint, 4) windows /doors, and 5) foundation. After completing the
survey I have compiled a brief summary of my observations, notes, and general
�..1 impressions concerning the state of our housing stock:
1. Roof Conditions & Observations:
• A majority of Fridley roofs (68 %) are in excellent condition. Recent severe
storms may have contributed to the recent replacement of many roofs.
2. Soffit/Facia Conditions & Observations:
• Peeling paint on soffit and facia boards is a common problem. However, this
condition is reflected in the siding /paint component of the average score, not the
soffit/facia score.
3. Siding /Paint Conditions & Observations:
• Peeling paint on window trim, garage doors, and facia boards was the most
common contributing factor for low- scoring homes.
• Vinyl siding will often suffer from faded, warped or loose pieces; these problems
can result in poor rating scores for Fridley's recently renovated and newer
housing stock (Example: Christensen Crossing).
• Shingle -shake siding is a common siding material found in Fridley. It is often
painted and diligently maintained but may still appear outdated.
4. Window /Door Conditions & Observations:
• Detached garages are not accounted for in the Housing Conditions Survey.
However, a poorly maintained garage in a prominent location can greatly detract
from the overall curb appeal of some well- maintained houses yet not be reflected
in the home's rating score.
• Window rating scores are excellent throughout Fridley. However, although most
windows are not in a state of obvious disrepair, it is likely most homeowners
would like to upgrade to more energy - efficient windows.
5. * General Conclusions & Observations:
Average Scores:
• 85% of Fridley's housing stock is in
"excellenf condition.
• 11 % of homes are in "good'
condition.
• 4% of homes are in "fail' condition.
• Only 3 homes in Fridley received a
"very poo►" condition rating.
Housing Conditions Scores
• When visiting with residents, the most common complaints have been related to
poor lawn maintenance or involve personal or other conflicts between neighbors.
Typical cosmetic problems most commonly found include:
• Unattractive front doors and garage doors.
• Doors damaged by dogs
• Damaged or weathered garage doors
• Faded screen doors and garage doors
• Peeling window trim paint.
• Peeling paint on soffit and facia boards
6. Rating Notes:
• A sagging roof results in an automatic poor ( "1 ") rating regardless of the condition
of the shingles.
• Most foundations are not visible and are assumed to be in good repair ( "3 ")
based on information and opinions gathered from city inspectors and residents.
Poor foundation ratings are given if observable signs of disrepair are seen or the
home is suffering from obvious settling problems.
• A good rating ( "3 ") does not guarantee an attractive home. Often, the house is
plain with barren, minimal landscaping or it may feature an outdated or
unconventional color scheme. The home may not specifically be suffering from
disrepair and thus does not warrant a poor rating.
In general, I have found that our housing consistently scored very high ratings. Though some
houses may appear outdated, very few can be said to be suffering from a state of disrepair. In
addition, most of the residents I have spoken to while out in the field have lived in Fridley for the
greater extent of their adult life and seem to be quite satisfied with the quality of their
community.
AM
CITY OF
FRIDLEY
INFORMARTIONAL ITEM
HRA MEETING OF AUGUST 9, 2007
Date: August 1, 2007
To: William Bums, City Manager
From: Paul Bolin, Asst. Executive HRA Director
Scott Hickok, Community Development Director
Subject: Gateway Northeast Planning Update
The initial kick off meeting for the University Avenue planning efforts was a mild
success. Approximately 25 residents (excluding Council members, Commission
members, and City Staff) turned out for the July 19�' meeting and shared many good
ideas for the corridor's future. We are expecting a much larger crowd at the next
meeting, based on the phone calls staff has received over the past two weeks as the
meeting has run on the City's cable channel.
I would encourage all of you to attend the upcoming meetings. The Corridor Housing
Initiative is a very unique process that provides for a lot of interaction and sharing of
ideas. The meeting on August 16th will include the "block exercise" that allows
participants to put "to scale" models on aerial photos and really start developing
potential reuse of the sites.
Upcominq Meetings
All meetings will be held from 7:00 — 9:00 P.M. at Fridley Community Center,
Thursday, August 16: Development ABC's
Join your neighbors in an interactive workshop to create feasible development
scenarios for University Avenue. Design and development experts will be on hand to
share ideas and insights.
Thursday, September 6: Moving Forward!
Explore the opportunities and challenges for development along University Avenue with
a panel of developers, business leaders, and city representatives to build a strategic
road map for the future of University Avenue.
Thursday, September 20: Framing the Recommendations
Recommendations will be drafted for the City Council and HRA Commissioners on
development objectives for publicly owned sites along University Avenue.
Potential Sikh Society Purchase
After consulting with Dan Wilson, the City's contracted relocation specialist, a purchase ..�
offer was drafted for the Sikh Society building. You may recall that the appraisal done
by Lake State Realty Services valued the property at $485,000 and there were 4
concerns that relocation expenses could make this property too expensive for inclusion
in a future redevelopment of this corridor.
A purchase offer in the amount of $410,000 for the property and a fixed payment of
$20,000 in lieu of moving expenses was presented to the Sikh Society in the middle of
July. To date we have received no response from the Sikh Society. I'm fairly certain we
will not hear back from them until the City Council has taken formal action on the Sikh
Society's special use permit for their new site behind Target. At this time, the Sikh
Society has yet to turn in a completed Special Use Permit application.
Mill
INFORMARTIONAL ITEM
HRA MEETING OF AUGUST 9, 2007
CITY OF
FRIDLEY
Date: August 1, 2007
To: William Bums, City Manager
From: Paul Bolin, Asst. Executive HRA Director
Scott Hickok, Community Development Director
Subject: Northstar Rail Fundinq Update
The HRA meeting on June 7t�' left both commissioners and staff with a number of
unanswered questions regarding the funding of Fridley's rail site. Since the June
Meeting Staff and Attorney Casserly have worked hard to try and answer some of the
questions. It seems that every time we get one question answered, the answer
generates 3-4 more questions.
Next Thursday night Attorney Casserly will be prepared to provide answers to many of
the legal questions that have arisen over the past few months. Additionally, I have
requested that Tim Yantos and other Northstar representatives attend the meeting in
order to answer questions. We are not asking the HRA to take any formal action
regarding Northstar next week. We are hoping to provide answers to all of your
questions so that formal action may be taken at your September 6t' meeting.
Since the June HRA Meeting, staff has provided a few Northstar Updates via e-mail.
Below, is a recap of the updates.
Recap of Northstar Updates
On Wednesday July 11 , Dr. Bums, Scott Hickok, Julie Jones, and I met with Tim
Yantos (NCDA), Ken Stevens (NCDA), and Paul Danielson (consulting engineer from
Kimle Home). The NCDA had requested a meeting to provide us with more detail on
the BNSF agreement, to stress the importance of the City /HRA committing $1.5M for
tunnel construction ASAP, and to get feedback on the initial tunnel design.
BNSF Agreement —
I believe that the HRA Commissioners all received a copy of the agreement pertaining
to the Fridley station, signed by Lt. Gov. Molnau. The NCDA reps stated that Fridley's
right to build a tunnel will not go away if we do not come up with the $1.5M by
November, however, BNSF would then have the right to change the design and
timeframe for installation. The importance of the November 1, is that BNSF needs a lot
of lead time to put their bid packets together for the tunnel construction and they can
only do this construction over Memorial weekend (2008) or Labor Day weekend (2008),
as the tracks will be shut down for 20hrs to complete the tunnel work. BNSF had even r^
offered to front the construction money if necessary.
Tim Nelson Property (East side of tracks) -
NCDA clarified that in MNDot's most recent discussions with Tim Nelson, he has
reiterated that he will only give up the property through condemnation (or possibly the
threat of condemnation) because of the tax advantages that he would receive. The
NCDA stated that MNDot has now stopped all dealings with Tim Nelson and that they
cannot condemn the property because, "there is no Fridley station project yet ".
NCDA also stated that, prior to BNSF doing the tunnel work, the Nelson property would
need to either be acquired or at minimum a construction easement would need to be
obtained, as the BNSF will need to stage the tunnel construction materials on the. east
side of the tracks. Who should obtain the easement? NCDA does not want to,
apparently MNDot is unable....likely the City /HRA will need to work with Tim Nelson to
obtain the easement or BNSF will need to obtain the easement.
Tunnel design, etc.
The NCDA & BNSF were proposing to put in 2 separate box culverts, which would not
connect through unless the station is built. We informed them that if the City /HRA were
willing /able to find funds for the tunnel, it would need to connect. As long as the box
culverts /tunnels connect, if the entire Northstar project goes away, the City will have a
pedestrian underpass at this location.
TEA Grant —
You may recall that former Public Works Director, Jon Haukaas, was preparing a
federal grant application to receive funding for the tunnel as part of a trail project. After
meeting with the NCDA and Paul Danielson, it was decided that receiving the grant
would be more costly for the City /HRA, as the tunnel entrances would all need to be
redesigned. The $2M grant would cause an additional $1.5M in added costs. Staff
decided to NOT send the grant application to the Feds.
�`,
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Fridley HRA
Housing Program Summary
Cover Page
August 9, 2007 HRA Meeting
Report Description
Loan Application Summary Loan application activity (e.g. mailed
out, in process, closed loans) for
December `05 and year -to -date.
Loan Origination Report
Remodeling Advisor &
Operation Insulation
Loan originations for December 2005
and year -to -date.
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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Loan Originations
Fridley HRA
Loan Origination Report
July 26, 2007
This Previous
Month Months
HRA Loans (incl. CFUF Dicscount loans) 1 4
HRA Deferred Loans
Other Loans (non -HRA) 3
Total 1 7
Funding Sources
MIT
5
3
8
Single Family 1 5 6
Duplex
Tri-Plex
4 to 9 Units 2 2
10 to 20 Units
20+ Units
Total 1 7 8
Types of Improvements
Interior # of Projects % of Total
Bathroom remodel
1
This
Previous
1
9%
General plumbing
Month
Months
YTD
Fridley HRA
$
3,143.00
$ 11,706.59
$ 14,849.59
MHFA
$
-
$ 27,862.00
$ 27,862.00
Met Council
$
-
$ _
$ _
CDBG/HOME
$
-
$
$ _
CEE
$
-
$ 35,000.00
$ 35,000.00
Other
$
-
$
$
-
Total $
3,143.00
$ 74,568.59
$ 77,711.59
_Types of Units Improved
polo
Misc. exterior projects
-
*some households receive more than
1 loan, so the # of loans may not equal # of units improved
This
Previous
Month
Months
YTD
Single Family 1 5 6
Duplex
Tri-Plex
4 to 9 Units 2 2
10 to 20 Units
20+ Units
Total 1 7 8
Types of Improvements
Interior # of Projects % of Total
Bathroom remodel
1
9%
Kitchen remodel
1
9%
General plumbing
1
90/0
Heating system
2
18%
Electrical system
0%
Basement finish
_
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Insulation
_
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Room addition
1
9%
Misc. Interior projects
1
9%
Exterior
Siding/Fascia/Soffit
1
9%
Roofing
1
9%
Windows/Doors
2
18%
Garage
-
0%
Driveway /sidewalk
_
0%
Landscaping
polo
Misc. exterior projects
-
0%
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FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY
August 9, 2007
,-1�
1. BNSF Rail Silent Crossing
Police Chief Don Abbott has been leading the charge to make Fridley's rail crossings, "silent'. It is likely these
crossings will be silent by the New Year. Chief Abbott has been keeping the public informed through a blog on
the City website. The following is a compilation of information taken from the past few weeks..
We continue to put finishing touches on the plans, including driveway access changes to Johnson
Printing on 77th Ave NE and the Schmidt Osborne Building on Osborne Rd. Johnson Printing has
opted for the conversion of their existing driveway to a right -in /right -out access. Schmidt Osborne
has submitted plans for a bi- directional access located further to the east on their property, beyond
the 120 foot median we've designed. This would require abandoning their existing driveway access.
Sentinel Chemical on 77th Ave NE has indicated throughout the past year that a right- in/right -out
access on 77th is fine with them.- I met with Sentinel's owner yesterday to deliver a copy of the plans
to him and he is very appreciative of the City's efforts to create the Quiet Zone. SA appears to be
satisfied with the project as the west side median as planned will continue to allow bi- directional
access for their eastern -most driveway on Osborne Rd..
Council voted unanimously to move the Quiet Zone project forward and designated it as
Street Improvement Project ST 2007 -3. The plans at this point include center medians, stiping, and
signage for both crossings. Our medians, as planned, will be very similar to the medians on 85th Ave
NE in Coon Rapids.
Monday's Council action authorizes staff to proceed with more detailed plans in preparation for the
bidding process. Once final planning is completed and approved by all involved entities (FRA, BNSF,
MNDOT, Anoka County) we will return to Council for final plan approval, funding, and authority to
open the bidding process.
Construction is currently being looked at for this fall with Quiet Zone implementation expected late
this year, or possibly early in 2008 depending on the processing time for all entities to review and
approve our plans.
We will be conducting a large mailing to properties inclose proximity to the Quiet Zone shortly. This
letter will provide a simple notification, project description and status, and direct people to this blog
for additional updates. It is the only mailing we have planned for the project as we hope these blog
updates will save the time and expense of additional mailings.
Please check the City's website to stay updated on the progress of the silent crossings.
2. JLT — Tiro - Lamaur Industries Site
Sams Club recently sent a group of engineers and an attorney to meet with the City's Development
Review Committee to discuss putting a large Sams Club with a filling station on this site. This is much
different use than the 6 story office building and multi tenant retail space that JLT had proposed in asking
for a rezoning of this property from industrial to commercial. Below is their proposed site plan.
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Nearly 2 years ago the Council approved the first reading of an ordinance to rezone this property and
withheld holding the second reading until a tenant and site plan were developed for the site. It is likely
that Planning Staff will recommend denial of this rezoning as it is not consistent with the density,
employment type, and building finish originally proposed by the JLT Group.
3. Gateway West
Blueprint Homes has indicated that they have continued interest in their homes and lots. As the home
on the corner of 57`h and Yd continues to progress, it will spur more interest in the southern block.
4. Cub Foods Site
Representatives from Tri -Land development group recently met with the Planning Staff to discuss the
future of the Cub Foods site. They are still evaluating a number of different options, but do seem
determined to do major renovations to the site. Below is one possible scenario, looking from the SE
towards the NW.
iii
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Nearly 2 years ago the Council approved the first reading of an ordinance to rezone this property and
withheld holding the second reading until a tenant and site plan were developed for the site. It is likely
that Planning Staff will recommend denial of this rezoning as it is not consistent with the density,
employment type, and building finish originally proposed by the JLT Group.
3. Gateway West
Blueprint Homes has indicated that they have continued interest in their homes and lots. As the home
on the corner of 57`h and Yd continues to progress, it will spur more interest in the southern block.
4. Cub Foods Site
Representatives from Tri -Land development group recently met with the Planning Staff to discuss the
future of the Cub Foods site. They are still evaluating a number of different options, but do seem
determined to do major renovations to the site. Below is one possible scenario, looking from the SE
towards the NW.
iii
5. Fridley Rotary Club
I had the privilege of speaking at the Fridley Rotary Club's meeting last week. It was fun to meet with
a group of civic leaders who share a passion for Fridley's future. As a collective group they are very
excited about some of the possible projects that may happen in the next few years (GWNE,
Northstar, JLT, Cub Foods, etc.).
If there are any items you would like covered in upcoming issues of the Non - Agenda Update please send
me an e-mail. bohnp@d.fii&ey.mn.us
IV
June 7, 2007
HRA Meeting
Regular Meeting Agenda
7:30 p.m.
City Hall, Council Chambers
Call to order
Roll call.
Action Items
1. Approval of expenditures
2. Approval of April 5, 2007 Meeting Minutes
3. Annual election of Chair and Vice Chair for one -year terms.
4. Participate in MN Solutions — 2008 Legislative Session
5. Authorization to Make Purchase Offer — Sikh Society
Informational Items
1. Gateway NE Update
2. Northstar TIF Legislation Update
3. Monthly Housing Report
Adjournment
H: \— Paul's Documents \HRA\HRA Agenda Items\2007Uune 7, 2007\June 7 -2007 Agenda Outline.docK\— Paul's
Documents \HRMHRA Agenda Items\2007Vune 7, 2007Vune 7 -2007 Agenda Outline.doc
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CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION
April 5, 2007
CALL TO ORDER:
Acting Chairperson Gabel called the Housing and Redevelopment Authority meeting to order at
7:27 p.m.
ROLL CALL:
Members Present: Pat Gabel
William Holm
John Meyer
Steve Billings
Members Absent: Larry Commers
Others Present: Mike Jeziorski, City Accountant
Paul Bolin, HRA Assistant Executive Director
Jim Casserly, Development Consultant
Richard Pribyl, Finance Director/Treasurer
APPROVAL OF MINUTES:
1. Approval of February 1, 2007, Meeting Minutes
MOTION by Commissioner Billings, seconded by Commissioner Holm, to approve the minutes
as amended.
UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON GABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
ACTION:
2. Approval of Expenses
MOTION by Commissioner Billings, seconded by Commissioner Meyer, to approve the
Expenses.
UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON GABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY.
3. TIF District #19 - Approval of Development Agreement
Paul Bolin, Assistant HRA Director, stated as they are aware Industrial Equities is building just
under 203,000 feet of new office and warehouse space at 5110 Main Street. This is where
Gaurdian Building Products used to be located. There are high costs anticipated for the building
demolition which started this past Monday. There are some soil corrections with storm water
management needson the site as well. They are seeking $1.5 million in pay -as- you -go
assistance. The HRA approved the creation of the TIF district on February 1, and Council held a
public hearing and granted their approval for the district on February 26. As a collective group
the HRA did look at this development agreement at the February 1 meeting and suggested
changes. Attorney Casserly has made a number of those changes suggested at that meeting.
Really there were just some clarifications that were sought regarding the name for the
developer's portion, whether it should be Industrial Equities or John Allen. Mr. Bolin thought
there were a couple of terms that were used interchangeably. That has all been standardized.
Mr. Bolin stated the size of the proposed building was somewhat in the air at that time. That has
been corrected in the development agreement. Definition of "site plans" was added to the
development agreement, and it was clarified that the maximum amount of assistance is the $1.5
million. Additionally, Mr. Allen had asked that underground storm water management storage
pond be added as an eligible expense. Since Mr. Allen started working at putting this new
development on this site, there have been a number of things- regarding storm water that have
changed since the existing buildings were on this site with some sewer lines and other easements
that run through there. The best way to manage the storm water on this site is to actually go
underground with it. That was an expense that Mr. Allen was not anticipating originally. Staff is
recommending the HRA approve the resolution that was included in the packets for last month.
That would authorize execution of the development agreement between the HRA and Industrial
Equities.
Acting Commissioner Gabel asked that the minor changes made be highlighted.
Jim Casserly, HRA attorney, stated the first one is the correct name of the corporate entity, the
owner of the project, and that is Industrial Equities North Yard LLC. They have specific entities
for each project. just as most developers. The second one is that when Mr. Allen appeared last
fall he was not sure if he was going to be doing a 242,000 square foot project or a 202,000 one.
It turns out it will be the 202,000 square foot project. Third, the site plans are now a defined
term. This is an issue that Mr. Meyer raised. Normally we have gotten into various kinds of
building plans and construction plans in more detail on housing projects. On our industrial
projects, we normally have approved the site plans and had the staff and City address the various
kinds of issues raised in the site plans. Now we are going to attach a set of the site plans to the
agreement, and they will be incorporated into it.
Mr. Casserly stated they further limited the revenue note which is a maximum of $1.5 million
for the actual cost of the site improvements less the square footage of the redevelopment
property multiplied by $4.00 per square foot. Issues were raised about what if the site
improvement costs were not in excess of the $1.5 million or what if the property was purchased
for less. The HRA will have copies of the purchase agreements and all of the eligible costs.
They will be part of the sworn construction statement that is submitted to staff so they will have
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all of the information. The HRA will then size the note when we have all the final costs in, and
it cannot exceed in any event the $1.5 million.
Mr. Casserly stated the fifth item was the issue Mr. Bolin just raised about the underground
storage tank for storm water use. There are some unusual issues that go along with this. As he
understands it there are a series of issues dealing with various kinds of easements, the width of
easements, access to various storm sewers or sanitary sewers. Also, the underground storm
storage tank is the method that needs to be employed in order to really utilize this site.
Jeff Salzberg, Industrial Equities, stated the one building will be 74,880 feet at 24 feet clear.
There will be a lot of glass across the front as well as brick at the main entrances, and it will be
fully landscaped across the front. The rear building will be 32 -feet clear and that will be more of
a rail distribution type use building. Both buildings will be fabcon (sp.) panels with aggregate
finish all the way around. Most of their tenants are more high -end users because they do build
nice buildings, and tenants need to pay big rent to get into them. Some of the tenants they have
are in New Brighton and consist of a lot of medical companies. For Corporate Express they were
going to build to suit for them on this site, and they expressed their interest in doing their bulk
warehousing in the back where they have the distribution building. They are currently over in
Arden Hills. Home Depot has expressed interest in the site as a distribution point. Uses like that
are what they would see in the rear building. In the front it could be something like cardio
companies, stent companies, etc.
Commissioner Meyer asked whether the rail spur would be behind the second building?
Mr. Salzberg replied, yes. The rear building will have rail up against the backside and then
truck court and glass on the sides around the corners on the fronts.
Commissioner Meyer asked if they had tenants for these buildings yet?
Mr. Salzberg replied, no, they do not.
Commissioner Holm asked whether both'of these buildings are single floor?
Mr. Salzberg replied, yes, and are 34 -feet clear in the front building (they do not build
mezzanines in their buildings) and 32 -feet clear for the rear building.
Commissioner Holm asked whether they have room for semis to load in that center space or is
that for smaller vehicles?
Mr. Salzberg replied for full 50 -foot semis. He believed the distance is close to 250 feet in
between the buildings.
Commissioner Holm asked Mr. Salzberg to explain a little bit more about the underground
storage of storm water, how does it work?
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Mr. Salzberg replied at first they tried to do a pond in the back. There is an easement of a sewer
pipe going underneath and to actually get around that with the other pipes, it turned out to be a
huge cost. Some of the stuff drains out to Main Street and there are some other easements
through there that they could not cross with the storm sewer. As he understands it the system
that is going in is a bigger pipe. Rather than your 2 -foot or 18 -inch pipe, and he thinks it is up to
4 -feet and actually leeches out of the pipe that would go all the way around the perimeter. The
volume is actually capable of staying in the pipes. Once the pipes fill to a certain level, they will
eventually start to drain into the main system.
Commissioner Meyer asked who is their architect?
Mr. Salzberg replied, Jeff Sybrant (sp.) with Architects P.A.
Commissioner Meyer asked who is the civil engineer?
Mr. Salzberg replied, John Ringo.
Commissioner Meyer asked of what firm?
Mr. Bolin replied, Plough Engineering.
Commissioner Meyer asked who is the constructurion engineer?
Mr. Salzberg replied, Louie Holt with Buildings Consulting Group.
Commissioner Meyer replied, this is a. fairly straightforward agreement and similar to other
kinds of agreements the City has been entered into. It has just been several years since they have
actually done a project like this.
Acting Chairperson Gabel asked since this is a pay -as- you -go, they do not have to worry about
real estate taxes?
Attorney Casserly replied, no, it really is self - policing. There is only a percentage of the taxes
that actually end up being tax increment. As a matter of fact it is interesting, and it probably got
handed out last month, they did a pie chart which they do periodically because they lose track of
just how much the State takes out of our property taxes and how much goes to the underlying
jurisdictions before you actually calculate what would be tax increment. There is a very
common misperception that 80 -90 percent of what people pay is going into a tax increment and
is being rebated and that is not true. In this instance it will probably not exceed 40 percent and
will probably actually be under that.
Acting Chairperson Gabel replied they did see that and believed it was about 38.8 percent.
MOTION by Commissioner Holm Approving the Development Agreement for TIF District #19.
Seconded by Commissioner Meyer.
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UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON GABEL
� DECLARED THE MOTION CARRIED UNANIMOUSLY.
INFORMATIONAL ITEMS:
4. Decertification of TIF District #14 — North Park Business Center
Mike Jeziorski, City Accountant, stated they did have TIF District #14 actually decertify in
2006. They were notified on January 21 to return all unused increment back to the County. That
amount is $660,321.76. Of that, 35 percent will be redistributed back to the City of Fridley with
the July 1 settlement.
5. Gateway NE Update
Mr. Bolin stated he did provide each of them with a handout that shows the cover of this
month's Planning magazine that actually shows members of the Corridor Housing Initiative who
the HRA will be using over the next few months to complete a similar planning process for the
Gateway NE area. The City did receive a formal notification letter from the Center for
Neighborhoods just prior to the HRA's last meeting stating that their Board had met, and they
selected Fridley to be the first suburb they would like to come work with. The City will be
getting their services for free. There is a meeting set up with them for this Tuesday where the
City will meet with their staff people and try to develop the framework for the process, hope to
get some timeframes, and work with them to try and identify some of the stakeholders and others
who should be involved in this planning process. They anticipate starting this planning process
some time in June.
Mr. Bolin stated the. area they are talking about would extend from our Gateway East
Condominium Project up to 61" Avenue. Since they met last they have closed on both the old
Van- O -Lite building and the newer Van- O -Lite building. The City has made an offer to the
Oriental House. They seemed quite interested a month or so ago and then they called him
yesterday asking if the City could send another copy of the purchase agreement. Sometime in
between there the Sikh Society had also made an offer to the Oriental House on their property.
However, now the Sikh Society has expressed to the City they would be interested in selling
their property to the City as they have purchased property behind the new Target. They have a
ways to go before closing on that property and, if that comes to Tuition, staff may be asking the
HRA in a couple of months to make an offer to the Sikh Society as well.
Mr. Bolin stated the Alano Society came in and met with him back in December and stated they
would be interested in working with the City and planning for the area, but they would like to
stay where they are at. He did hear from the Promotional Products Company that sits just south
of the Alano Society. He spoke with them yesterday, and they would like to participate in the
planning process. However, at this time they would like to stay where they are at as well as the
veterinary hospital. Back in February the City did have discussion regarding the purchase of the
Citgo site which is on the north side of 6l t. They will recall the appraisal at that time came in
quite a bit higher than they had anticipated, there was possible contamination, and staff would
come back to the HRA in March after they had reviewed the records through the Fire
Department and the MPCA. What staff's research showed is that over the years there have been
a number of leaks which were documented in a memo the HRA received last month. However,
all the leaks had been cleared by the MPCA. He did not think that means all the contamination
had gone away, it just has gotten to a level the MPCA does not deem a problem anymore.
Mr. Bolin stated they did a little bit of exploration as to what types of financial assistance might
be out there to clean up some of the petroleum problems that may exist, and both the Pollution
Control Agency and the Department of Commerce have a couple of different programs that may
be applicable in this case. If the HRA was seriously considering making a purchase offer on this
site, staff would recommend they have a more formal environmental review done before that,
including possibly soil borings so they know exactly what the extent of the contamination is on
this site. In one of the cases they had reviewed, it appeared that some of the contamination had
even traveled across 61St on the Sinclair site. At this point he thinks they could include the area
in their planning process, but not necessarily go ahead and purchase that site at this time.
Commissioner Holm recalled the assessed value of that property was quite high and the HRA as
a group was a little bit hesitant to make an offer. Obviously it is separate from the other block
and there was question as to how they would use that. However, yes, if they can include it into
the area that would be fine just for discussion purposes.
Acting Chairperson Gabel mentioned she saw something regarding the Corridor group doing
something on the Fridley channel?
Mr. Bolin replied, yes, they have put together a DVD about how their process works and they
gave the City a copy of that about three weeks ago. Brian Strand has gotten it into a regular
rotation on the cable channel. Over the next few months as the City starts talking 'about that
process more, people will have more of an idea of exactly what it entails. The City does also
have extra copies of the DVD if people would like to watch it at home.
6. Northstar TIF Legislation Update
Mr. Bolin stated the Fridley station site was left out of the first round of construction for the
Northstar corridor. The Rail Authority came up with about a $10 million shortfall. There were a
number of things that made the Fridley site more expensive than the "rest. Namely, we need a
tunnel underneath the rails because of the five rail lines that run through this portion of Fridley.
The City's station platform itself is going to be located in the center of the rails. They need a
tunnel and essentially three elevators to bring folks down into the tunnel underneath the tracks
and then up to the platform in the center of the rails. Because of the land on the east side of the
tracks, between Main Street and the tracks, there is a high cost for the acquisition. Also since
Fridley is the last station before Minneapolis, it seemed to have the least cost benefit to it when
the federal government did their analysis on it. Fridley was left out of that first round. However,
Burlington Northern would still like somebody to come up with the money to at least put the
tunnel in underneath their tracks as part of the first round of construction so they can control
when they are going to be held up by the construction. They would like to get it all out of the
way at one time.
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Mr. Bolin thinks Fridley will just keep always falling short on that cost benefit because it is not
going to get any cheaper to put the tunnel in or acquire the land. That led to a brainstorming
session with the City Manager and a number of staff people and legal counsel and they have
been investigating a number of . alternative funding sources to get the tunnel in • and possibly
acquire the land on the east side. Jon Haukaas, the public works director, has been working on a
couple of grant applications for the tunnel itself. One is through -the Federal Transportation
Enhancement funds and another opportunity is through a group called the Transit for Livable
Communities who have a few million dollars they are looking to spend around the Twin Cities
metro area to enhance transit connection. However, none of that gets the City close enough to
getting rid of that $10 million gap. Even if we do not move forward with the actual station
construction this time, the tunnel itself is a good stand -alone project. It gives us an east -west
connection that we currently do not have. Those grant applications are going in and could work
even if everything else were to fall apart, and we cannot get additional funding.
Mr. Bolin stated the proposed legislation that was put together would create a special TIF
district for Fridley called a Transit TIF District, and it would be used to help fund the
construction of the tunnel, the acquisition of some of the property, the station construction itself,
and possibly doing some redevelopment projects around the area. The map that they have before
them shows all of the properties that were proposed to go into that Transit TIF District. The
legislation that had been drafted and introduced also gives the City the ability to spend funds that
are currently being generated in our TIF Districts Nos. 11, 12, and 13. It would allow us to take
those excess funds in those districts. Those are all districts that have completed projects and now
have these balances sitting there that we cannot spend anywhere else.
Mr. Bolin stated this legislation would give us the ability to take those funds and spend them
within this new Transit TIF District. If we look at the three funds, the TIF Districts Nos. 11, 12,
and 13, and calculate what they could generate over their life span, two of those districts expire
in 2018 and District 13 expires in 2025. By being able to tap into those funds would generate 2.4
million over the life of those districts that we could use within this project area. In their packet
he did give them more of a written update on what has happened with the actual legislation. On
the Senate side a lot of the language was actually taken out of our Bill, and he thinks all they are
really left with on the Senate side is the ability to use those funds from those two TIF districts
within our proposed transit area. Also they can only spend those funds for the tunnel itself and
not for anything related to the station construction. He does not believe at this time they are even
able to use that for acquisition.
Attorney Casserly stated it is really for the construction of the tunnel under the Burlington
Northern Santa Fe railroad tracks to allow access to a Northstar commuter rail station.
Mr. Bolin stated right now the way it is sitting on the Senate side, a lot of things have been
stripped out, and it is very restrictive. We have had staff, and one night they even had
Commissioner Billings, go down to St. Paul with them for an evening hearing. The Mayor has
been spending a great deal of time down there working on this issue as well. On the House side
so far the Bill has been left as it was presented.
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Attorney Casserly stated as they all know things like this get very complicated because they end
up in the tax bill, and he assumes the first tax bill is going to be vetoed by the Governor and so
they will come back and .do a second tax bill. They have a little subgroup that actually handles
local economic development issues of which this is a part of. There will probably be three
senators and three house members who will actually be overseeing the portions of the tax bill
that deal with these issues. On the House side their problem is the chairman of the tax
committee has a project in her district that is so much greater than the combined cost of all the
rest of the projects. It is the Mall of America looking for $125 million. The rest of these projects
pale in comparison. She is very concerned about setting various kinds of precedents on smaller
projects that she would then not have any ability to say, as a practical matter, no to for larger
ones. She is very diligent and is trying to figure out some uniform principles that she can apply
in reviewing these projects. The committee heard it in the House, they were very receptive and
very gracious. They essentially indicated they would work with us and try to figure something
out, but they did not know quite what that was.
Attorney Casserly stated the real issue here is not just trying to assist with transit. People have
become very sensitive to the role of urban renewal and redevelopment and inner suburban and
central city areas. They really are becoming conscious of it. When we describe to them the real
goal of this, to take advantage and provide some very good redevelopment that would be
promoted by the transit stations and put ourselves in a position whereby we can take advantage
of it, we have had a very receptive hearing. The reason Senator Chaudhary is genuinely
concerned about the direction things have gone is that he really believes it is the State or it is the
Authority or some entity that should really be paying for the cost of these stations. It is hard to
argue with that in principle. We have other concerns and in order to use this site to the
maximum, we have some structured parking issues, land clearance, we have to have access, and !�
that is why we get into this whole discussion of the tunnel. Even if we get legislative approval,
this is something the City will be dealing with really over a long period of time. Also, we have
to fix up the legislation, a little bit. You do not want to create one tax increment district. You
only want to create districts and really see some potential development that would help
contribute to the overall goals and plans and help create the density. So we have a good start in
both bodies and there is just more work that needs. to be done. They are not partisan discussions;
these are just some very honest differences of opinion about who should do what, etc.
Acting Chairperson Gabel asked Mr. Bolin if he knew when they will know about those .
grants?
Mr. Bolin replied he knew the deadline was coming up towards the end of April. He would
think the Transit for Liberal Communities one was in early or mid - summer timeframe they
would hear back on. He thinks the federal one is not until November.
Commissioner Meyer stated he is really concerned about their interest in putting a tunnel
through regardless of whether or not the station is there. A tunnel should be located exactly
where we want it to be with respect to a station. Without the station to be the hub and the reason
for the tunnel, it seems to him the tunnel could be put in a more awkward position or location
than they may want. The other thing is the maintenance of-the tunnel, that is not going to be
cheap year after year without certainly a station there to help pay for it in some fashion. There is
going to be a lot of maintenance, guards, electrical, heavy and very expensive equipment such as
the elevators to maintain, etc. So it is going to be a constant financial drain. He wonders why
we feel we have to have the tunnel there at this time except maybe being an inducement to give
us the station.
Mr. Bolin stated the tunnel itself could be as simple as a big box culvert that goes in this summer
or next summer and the ends are sealed off, and it stays like that until the station is built here. If
some of these grant applications are successful, the tunnel actually is in a logical place to tie in a
number of our bike trails. We have the regional trail that follows along the west side of the rail
right there at 61'. It would also tie in Stevenson Elementary School with 61" and allow people
to go from that area all the way over to the community center. Engineers have looked at this, as
part of our comprehensive planning process, the City has had a couple of neighborhood meetings
over the last month, and there seems to be support for putting some sort of pedestrian access in at
that part.
Commissioner Meyer replied you cannot use the argument for pedestrian access and tunnel and
trails, etc. if you are also talking about a box culvert that is going to be blocked off. The two are
not compatible schemes. For a box culvert, if it is so simple to put in, it could be in any time
later. He really feels they are being very previous in pushing a tunnel idea through. It can be a
very expensive thing and also a tunnel has to be guarded for anyone using that tunnel. There has
to be lighting, guards, and maximum concern for public safety because a tunnel is not a very safe
conduit.
7. Monthly Housing Report
Mr. Bolin stated the HRA loan program seems to be following the trends we keep hearing about
that housing is down, etc. Again we see that this month. There was only one loan issued by
CEE in Fridley. It was out of the MHFA funds that they had used. That made it only the second
loan for this year that has been issued. Remodeling Advisor visits were up. We did have four of
those in March, giving us eight total for year -to -date. No calls for Operation Insulation over this
past month.
Mr. Bolin stated right now we have a total of 83 loans out there that are still active; 71 of those
revolving, 12 of them are part of the Deferred Last Chance Loan Program, making a total of
about $1.1 million the HRA has out right now. This month the HRA received about $36,000 in
payments and $4,000 of that was interest and the rest was principal. Regarding delinquents on
our $1.1 million, the HRA has about $6,000 total that is past due right now.
Mr. Bolin stated Dr. Bums had asked him to mention he would like to push the regular HRA
meeting in May back to Thursday, May 17, and then he would like to have them in a joint
session in the City Council just before that. At 6 o'clock he would provide a dinner and ask that
they meet with the Council. The purpose of that is to go over the Council/Commission surveys
they may have already received in the mail. He would like to have those back by April 16 if
possible, and then he will try to get everything compiled by May 17.
Mr. Bolin stated the Home and Garden Show was held on February 24. The snow did keep
quite a few people away, but about 750 people did attend. The City tried a few different things
this year, more seminars and different topics which all seemed to be very popular. The City had
them move the City booths back. Last year some vendors complained about being stuck in one
of the back rooms of the Schwan's Center. This year they put the City booths back there along
with a number of architects who had volunteered their time and also some interior designers. So
they really had a resource room where residents could come in and get information on the City's
loan programs and then go chat with some of the other architects who would sketch out some
ideas for them so it worked out well. Plans are already started for next year's show which will
be on February 23 again at the Schwan's Center.
Acting Chairperson Gabel stated she did see that they finally got the platting for Gateway.
Mr. Bolin replied, yes. That happened about two weeks ago. Even when it was filed there were
still some things the County was pointing out, stating they are going to still be coming back to
the City, there are a couple of little slivers within there that the City has ownership on and so
attorney Knaak will have some quit claim deeds made up and it should be smooth sailing. It
does not affect the plat that is recorded. It may slow things up a little bit when Blueprint actually
goes to take some of those properties. He did speak with Jeff Magdic of Blueprint earlier today,
and he is getting ready to take the next three lots. He is actually meeting with four different
groups tomorrow that are interested in a couple of the sites down there. He is also thinking of
putting a model home up on that southern block.
Commissioner Billings stated the County has appointed an Economic Development Authority
Exploratory Committee to review the housing redevelopment activity and the economic
development activity within the County and to determine if there are any needs that are out there
not being met. The mission of the study group is to report to the County Board and make their
recommendation to either create an economic development authority to give the current Housing
and Redevelopment Authority economic development authority powers, seek special legislation
if there is no model that really fits our needs, or to recommend doing nothing. The group has
met he believes three times now and their next meeting is April 24 when they will be formulating
a recommendation to the County Board and forwarding that to them in May.
ADJOURNMENT:
MOTION by Commissioner Meyer to adjourn.. Seconded by Commissioner Holm.
UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON GABEL
DECLARED THE MEETING ADJOURNED AT 8:28 P.M.
Respectfully submitted,
Denise M. Johnson
Recording Secretary
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