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HRA 08/07/2008 - 6355August 7, 2008 HRA Meeting Regular Meeting Agenda 7.00 P.m. City Hall, Council Chambers Call to order Roll call. Action Items 1. Approval of expenditures 2. Approval of May 1, 2008 Meeting Minutes 3. Annual Election of Chair and Vice Chair for one -year terms 4. Approval of Resolution Declaring Properties Blighted Informational Items Northstar Rail Station Update Adjournment H:H- Paul's DocumentsUHRAWRA Agenda ItemsN2008Wugust 7, 2008Wugust7 -2008 Agenda Outline.docH:�-Paul's DocumentAHRAVIELA Agenda It=\2008\August 7, 2008\August7 -2008 Agenda Outline.doc R, CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION MAY 1, 2008 CALL TO ORDER: Chairperson Pro Tern Gable called the Housing and Redevelopment Authority to order at 7:00 p.m. ROLL CALL: MEMBERS PRESENT: MEMBERS ABSENT: OTHERS PRESENT: ACTION ITEMS: William Holm Pat Gabel Steve Billings John Meyers Lary Commers William Burns, City Manager Mike Jeziorski, Accountant Jim Casserly, Development Consultant Paul Bolin, HRA Assistant Executive Director 1. Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures as presented. Seconded by Commissioner Billings. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED. 2. Approval of March 6, 2008 Meeting Minutes MOTION by Commissioner Billings to approve the minutes as presented. Seconded by Commissioner Billings. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED. Chairperson Pro Tem Gabel asked for a motion for additions to items 3 and 4 to the agenda. MOTION by Commissioner Billings to add items 3B and 4B to the Agenda. Seconded by Commissioner Meyers. 1 UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED. 3A. Confirmation of Approval of Rail Station Site Appraisal Paul Bolin, HRA Assistant Executive Director, said. as part of accepting the acquisition of the property necessary for the rail station in Fridley, there are number of action of items that happened in the last few months including the site appraisal, accept the current value of the property and the predevelopment costs. That value is $3,165,000. State Statue requires that the HRA officially approve and accept that appraisal. On March 6th there was not a full HRA in attendance and it was suggested to bring this back at the May meeting. Staff does recommend an official motion be made tonight on this item. Chairperson Pro Tem Gabel asked if this was just a housekeeping item. Mr. Bolin said that is correct. MOTION by Commissioner Meyers to approve the confirmation of approval of rail station site appraisal. Seconded by Commissioner Billings. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED. 3B. Approval of Resolution Clarifying the Use of These Funds for the Property Acquisition. Paul Bolin, HRA Assistant Executive Director, said that on April 22nd Judge Sullivan granted authorization for the HRA to acquire the property necessary for the Northstar Station site through condemnation. Judge authorized the HRA to deposit $3,165,000 with the District Court on May 1, 2008 and immediately take title to the property. The funds came from TIF Districts 6, 7, 11, 12 and 13. For the amounts to be transferred from the Special Law TIF Districts, an advance shall be made from the HRA general fund. The HRA general fund shall be reimbursed by the Special Law TIF Districts when the Special Law becomes effective. Jim Casserly, Development Consultant, said that this is just a housekeeping item. Special legislation allows us to spend any of our tax increment districts 11, 12 and 13 in the Northstar project area. Over the next number of years there will be several million more to come out of those districts to use in the Northstar project area. It is also appropriate to use funds from districts 7 and 9 for this project. Mr. Bolin mentioned that the Onan and Winfield districts still have some funds left so we will build back some in those districts. MOTION by Commissioner Billings to approve the resolution clarifying the use of these funds. for the property acquisition. Seconded by Commissioner Meyers. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED. 4A. Proposal for a Limited Phase Two Environmental Site Assessment for the Property Located at 6071 University Avenue NE. Paul Bolin, HRA Assistant Executive Director, said that on Thursday staff received a purchase agreement from the Sinclair Station: The purchase agreement is set up to give us the opportunity to step back from the sale if the soil is badly contaminated. Soil boring tests will be done before the closing on May 19th. Staff would recommend approval of this expense for the soil testing not to exceed $9,225.88. Chairperson Pro Tem Gabel asked what soil borings were and how the soil borings were taken. Commissioner Meyers said that a machine drills every 2 -2 %z feet and pulls out samples of soil to be tested. Commissioner Meyers asked if staff received competitive bids on this item. Mr. Bolin said that staff typically solicits other proposals but they have worked with the Liesch Company before and were happy with the outcome. Given the short time frame this proposal will work best. The bid falls under the dollar amount for which it is required to get competitive bids. MOTION by Commissioner Holm to approve authorization to hire the Liesch Company to make an environmental assessment not to exceed $9,225.88. Seconded by Commissioner Meyers. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED. 4B. Authorization to Purchase the Alano Society Building Located at 5925 University Avenue Paul Bolin, HRA Assistant Executive Director, said that Paul Schwartz, Appraiser, had a chance to complete the appraisal of the Alano Society building located at 5925 University Avenue. Due to the large lot size (nearly 1 acre), the size of the building (7,000 square feet), and the age of the building (constructed in 1989), the property has a high market value, $805,000. The City Assessor had valued the site at $865,000 for 2008, down from a value of $874,000 in 2007. Mr. Bolin said that there appears to be a willing seller and very minor relocation benefits. Staff recommends the HRA offer to purchase the property for the appraised market value of $805,000. Acquisition of this property adds nearly 1 acre to the project A area of a future redevelopment. Combined with the newer Van-o -lite building immediately north of this site, there may be enough land area to initiate a redevelopment for a medical clinic, senior building or other use. Commissioner Meyers asked Mr. Bolin to recap the properties that HRA owns in that area. Mr. Bolin said working from the Alano Society north, HRA would own the Alano Building, the newer Van-o -lite building, former Car Quest building, older Van-o -lite building, Tae- Kwan-Do Center and the Sinclair Station. HRA is starting to get some mass down in that area for redevelopment. William Burns, City Manager, asked what percent of the land area does the HRA currently owns. Mr. Bolin did not have an exact number but said roughly 50 %. Commissioner Holm said that this is an important part of the project and a large piece of land. It is a large appraisal but the price will probably not come down any more. MOTION by Commissioner Holm for the HRA to purchase the Alano Society for the appraised value of $805,000. Seconded by Commissioner Meyer. Commissioner Meyer asked if there was anything negative about putting a maximum on the purchase offer. Mr. Bolin said that this is the HRA process and it has been successful making the offer on the appraised value. Dr. Burns said that there is no rush on this project so the HRA could make a second offer if needed. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED. Commissioner Billings mentioned that there was a for sale /lease sign on the Car Quest building and both Van-o -lite buildings. He asked if we were trying to market the property. He also asked if there would be an advantage to rent the building back to the Alano Society until HRA is ready to redevelop the property. Mr. Bolin said that the realtor has not taken the sign down and he would give them a call. Renting the Alano building may be part of the negotiations when we purchase the property. 5. Blueprint Homes Development Agreement Extension k Paul Bolin, HRA Assistant Executive Director, said that in response to the slow housing market, staff is recommending the following changes to the Gateway West Development Agreement with Blueprint Homes: • The deadline for Blueprint to acquire all the lots has been extended to December 31, 2009. The requirements that Blueprint purchase at least 2 lots at a time and that Blueprint buy lot at least quarterly have been eliminated. • The deadline for Blueprint to construct the homes on those lots was extended to December 31, 2010. • At each lot closing, Blueprint will be required to pay a deposit of $5,000 /lot to cover the landscaping required by Schedule E of the Contract. The deposit will be refunded once the landscaping is complete. The purpose of this is not intended to increase Blueprint's costs, but rather to insure that the landscaping required by the contract is completed. Chairperson Pro Tem Gabel asked if Blueprint was in agreement with these changes. Mr. Bolin answered yes. Chairperson Pro Tem Gabel asked what the latest update was with the fence. Mr. Bolin said that the fence was to be fixed this week but they were called for a couple other jobs. They will be back out the 8f' to complete the job. A construction van went through the fence in December and the entire ballad has to be built before the fence can be installed. The insurance company has sent a check to cover the expenses but we needed to wait for appropriate weather to fix the fence. Commissioner Billings said that HRA is asking Blueprint Homes to purchase all lots by 12/31/09 but not required to construct the homes before 12/31/10. He asked why we don't make the dates identical. Mr. Bolin said that if HRA wanted to make changes to what was presented, Blueprint Homes would more than likely be in agreement. Commissioner Holm said that if HRA put the deadline to 2009, it would put pressure on the builder. Mr. Bolin said that Blueprint Homes is an optimistic builder and gets people interested in buying but the buyers are hard to qualify for the purchase. Jim Casserly, Development Consultant, said that the only reason the dates don't match is to make sure there is time for closings. Commissioner Meyers said he is in favor of leaving the dates alone. Ultimately we would grant another extension if needed. Commissioner Billings said he would agree either way, the HRA has a good working relationship with the builder and we understand the situation they are in. MOTION by Commissioner Meyers to approve the Blueprint Homes Development Agreement Extension. Seconded by Commissioner Billings. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED. 6. Consideration of Cost Sharing for Demographic Data Paul Bolin, HRA Assistant Executive Director, said that the Community Development staff would like to request the Housing and Redevelopment Authorities to consider a $2,718.75 contribution (half of the cost of a 2008 contract) with Excensus, LLC, to provide updated demographic data for Fridley. The other half will be shared by Community Development. Mr. Bolin said that the cost of this contract in 2006 was based on a $1.05 per household figure or a total of $11,789. A $5,894.50 contribution was authorized by the HRA at that time. To maintain the data now on an annual basis will be approximately half of the price of that original contract. Staff recommends that the HRA consider a $2,718.75 contribution to the cost of updating our demographic data expenses and authorize the chair to execute the contract. Commissioner Gabel said she thought this was a useful tool for the City to use for overall planning. William Burns, City Manager, said that due to confidentiality, some of this information is difficult to get from the school districts. Commissioner Holm asked if this was an ongoing cost. Mr. Bolin said that it is for just this year. If the data continues to be useful, staff will come back next year for a similar request. Commissioner Billings said that it looks like the city is already in a contract looking at the dates. Mr. Bolin said that it has taken time to get the contract together. The contract for 2008 has not been signed or paid for yet. MOTION by Commissioner Holm to approve the cost sharing for updated demographic data. Seconded by Commissioner Meyer. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED. INFORMATIONAL ITEMS: 1. Northstar Rail Project Update Paul Bolin, HRA Assistant Executive Director, said that the Senate has the language correct but on the House side, somehow they left out or eliminated the multiple TIFF districts. Staff will have contact with legislation to try and make changes to the language in the House. Jim Casserly, Development Director, thinks that the language will come out okay but we will probably not know the results until the end of the session. Mr. Bolin said that we were notified that the House is considering a Bill to allow local HRH's to increase their maximum levy from .014% to .020 %. While it doesn't seem that the State is pushing everything back on the local jurisdictions and property taxes, this seems like a reasonable bill. This would provide Authorities the ability to raise additional funding for local projects that the State is unable to fund. There is a meeting scheduled to look at alternative financing options that could be granted. This meeting is likely to take place in late June or July. We have been in contact with Representative Keith Ellison's office to keep them apprised of our efforts in the event that the Representative is able to help find funding at the Federal level. Mr. Bolin said that around May 27t' there will be activity on site as they will start to build the tunnel and install the box culverts. 2. Monthly Housing Report Paul Bolin, HRA Assistant Executive Director, said that two revolving loans were closed and one CEE loan was approved: He mentioned that with the high foreclosure rate, HRA needs to get a handle on what that would mean to the HRA loans if the property went into foreclosure. There is really nothing the HRA could do but write off the loan and take a loss. There may be an instance where it would make sense to purchase the property and resell rather than take the loss. As part of the next meeting, we will make a presentation to discuss this further. Chairperson Pro Tem Gabel asked how people can get information about foreclosure and workshop offerings. Mr. Bolin said that educating people is the best strategy and it is important to get this information into their hands. William Burns, City Manager, said he is trying to get someone down here in June to conduct a workshop, but it may be late August before someone is available. Mr. Bolin said there have been 13 remodel visits year to date. Chairperson Pro Tem Gabel asked if aging reports could be ready next month. Mr. Bolin said that would not be a problem. Commissioner Holm asked-if the foreclosure crisis creates a great opportunity for HRA to purchase property to benefit the community. Mr. Bolin asked who the HRA would sell the property to. It would be an investment on HRA's part because HRA may not break even on properties. Brooklyn Park has tried this and part of the problem is that after the property is closed on, a month or two later the property value continues to drop. Commissioner Holm said he didn't know what kind of opportunity there would be, but thought it would be worth some consideration. Mr. Bolin said it can be hard to find out what properties are in foreclosure. Dr. Burns said that you could check the delinquencies of the water bill. Mr. Bolin said that next meeting will be June 5, 2008 Dr. Burns said that the Council survey results were distributed. He asked HRA to fill out and the Council will meet on June 5b at 6:00 p.m. downstairs to discuss the redevelopment portions of the survey. ADJOURNMENT: MOTION by Commissioner Holm to adjourn. Seconded by Commissioner Meyers. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 8:47 P.M. DATE: July 30, 2008 Fridley Housing and Redevelopment Authority Action item TO: William W. Burns, HRA Executive Director FROM: Paul Bolin, Assistant HRA Director SUBJECT: Election of Officers Article V, Section 3 of the Authority's by -laws requires the Board of Commissioners to elect a Chair and Vice Chair to one -year terms at its June meeting. The HRA held an informal work session in June and did not met in July; therefore this action has been postponed until the August 7th meeting. Below is a list of the commissioners and the length of their current appointments. Commissioner End of Term Steve Billings June 2010 John Meyer June 2011 Bill Holm June 2012 Pat Gabel (Vice Chair) June 2013 Larry Commers (Chair) June 2009 Recommendation Staff recommends that the Authority elect a Chair and Vice Chair as required by the Authority's by -laws to serve through June 2009. ■'' ACTION ITEM ri HRA MEETING OF AUGUST 7, 2008 CITY OF FRIDLEY Date: July 30, 2008 To: William Burns, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subject: Resolution Declaring Structures Blighted Due to on -going costs, liabilities, and the condition of the properties purchased, Staff is recommending that the buildings previously purchased be demolished in September or October of this year. During your June work session we briefly discussed demolition and the actions the HRA could take to demolish the properties and still create a TIF District for a redevelopment project in the future. In addition to displaying the depressing image of these vacant buildings on our busy thoroughfare, we continue to have problems with people breaking into the buildings and dumping garbage, furniture, and electronics on our sites. We also had an exterior stand pipe for the fire sprinklers in the newer Van -o -lite break and flood a portion of the building. Additionally, we have had to keep electricity running in the older Van -o -lite building and keep it heated as a result of an odd water line connection to the Tae - Kwan-Do Center. The City of Fridley's Chief Building Official recently performed an inspection and blight analysis of the properties currently owned by the HRA along University Avenue NE. The purpose of the inspection was to determine if the home met the statutory definition of "substandard ". The substandard determination and the attached resolution, declaring the properties as such, will allow the HRA to demolish the home prior to the creation of a TIF District. While it seems unlikely that a large redevelopment project will happen within the next year, the approval of the attached resolution will allow the properties' inclusion in a future project. To include these blighted properties into a future TIF District, the district itself will need to be established within 3 years from the date of the actual demolition. If a project has not been identified, or is not yet ready to proceed, at the end of the 3�d year, the HRA will need to create the TIF District but may defer the collection of increment for an additional 4 years. In essence this gives the HRA 7 years to move a project forward on these properties. Staff recommends the attached resolution be approved. If approved, a similar resolution will go before the City Council. KRASS f MON ROE James R. Casserly jcasserly@krassmonroe.com Direct 952.685.1296 11 _ N 15SURK l 1l To: City of Fridley Attn: Paul Bolin, HRA Assistant Executive Director Attn: Scott Hickok, Community Development Director From: James R. Casserly, Esq. Date: July 31, 2008 Re: Substandard Building Resolution for Gateway Northeast Our File No. 9571 -69 The HRA has acquired or is in the process of acquiring several parcels that include substandard or structurally deficient buildings in the area known as Gateway Northeast. It is the intention of the HRA and the City to create a tax increment financing redevelopment district at the appropriate time. However, the buildings need to be removed since they are blighted and will become attractive nuisances. The Tax Increment Act provides that an authority and city may declare their intent to create a tax increment financing redevelopment district and then remove or demolish the buildings after such a resolution has been adopted. The TIF Act further requires that the tax increment financing redevelopment district must be presented to the County for certification within three years of the demolition of the buildings. In the event all of the parcels that the City intends to redevelop are not acquired within that three year period, or if the City is still negotiating with a redeveloper or builder, then the City and Authority may establish a TIF district within that three year period and further provide that the collection of tax increment shall be deferred for four years. The four year deferral of receipt of the first tax increment was contained in changes to the Tax Increment Act authorized by the legislature in the 2008 session. With the opportunity of having up to seven years, the City and HRA should have adequate time to not only establish the district but also to guide and structure the redevelopment. 8000 Norman Center Drive, Suite 1000 Minneapolis, Minnesota 55437-1178 TEL952.885.5999 F952.885.5969 www.krassmonroe.com A Attached are forms which both the City and the HRA have previously used. We need to identify the property and review the blight reports before these Resolutions are adopted. Please let us know if we can provide any additional information on this matter. JRC /al Enclosures cc: City of Fridley Attn: William Bums, City Manager, HRA Director Page 2 KM: 484 8-2155 -4690, v. 1 Page 1 - Resolution No. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. 2008 - A RESOLUTION DETERMINING THAT CERTAIN PARCELS ARE OCCUPIED BY STRUCTURALLY SUBSTANDARD BUILDINGS AND ARE TO BE INCLUDED IN A TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley (the "Authority') as follows: Section 1. Recitals. 1.01 The Authority has considered the acquisition and redevelopment of the parcels identified as follows (the "Parcels "): Address: 5865 University Ave. NE PIN: 23- 30 -24 -24 -0023 Address: 5945 University Ave. NE PIN: 23-30-24-21-0143 Address: 6005 University Ave. NE PIN: 23-30-24-21-0134 Address: 6041 University Ave. NE PIN: 23- 30 -24 -21 -0109 1.02 Minnesota Statutes, Section 469.174 et seq., as amended and supplemented from time to time (the "Tax Increment Act "), provides for the establishment of a redevelopment tax increment financing district. The Tax Increment Act allows for the inclusion of parcels within a redevelopment district after substandard buildings have been removed by complying with Minnesota Statutes, Section 469.174, Subd. 10(d). Page 2 - Resolution No. Section 2. Findings. 2.01 The Board hereby finds that the acquisition and redevelopment of the Parcels further the goals and objectives of the Development Program. 2.02 The Board hereby finds that the Parcels are occupied by a structure or structures that are structurally substandard, as defined in the Tax Increment Act and described in the blight report on file with the City, and that the structure or structures must be demolished and removed from the Parcels. 2.03 The Board hereby finds that the Authority intends to demolish or cause to be demolished the substandard building or buildings and to prepare the Parcels for redevelopment. Section 3. Declaration of Intent. 3.01 The Board hereby declares its intent to include the Parcels within a redevelopment tax increment financing district and to file the request for certification of the Parcels as part of a district with the Anoka County Auditor within three years of when the Parcels were occupied by a substandard building or buildings. Section 4. Notice to County Auditor. 4.01 If the Authority establishes a tax increment financing district and includes the Parcels, then upon filing the request for the certification of the tax capacity of the Parcels as part of such district, the Authority shall notify the Anoka County Auditor that the original tax capacity of the Parcels must be adjusted as provided in Minnesota Statutes, Section 469.177, Subd. 1(f). PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS 7th DAY OF AUGUST, 2008. Lawrence R. Commers, Chairman ATTEST: William W. Burns, Executive Director 2 k ARM ri QTY OF FRIDLEY INFORMATIONAL ITEM HRA MEETING OF AUGUST 7, 2008 Date: August 1, 2008 To: William Bums, City Manager From: Paul Bolin, Asst. Executive HRA Director Scott Hickok, Community Development Director Subject: Northstar Rail Project Update Things are getting very exciting for the Northstar project. Staff is very optimistic that the remaining funding necessary for our rail station will come from the 1/4% sales tax as soon as November 1St The engineering firm of Kimley -Horn Associates is beginning to work on the final design work for the Fridley Station. They will be meeting with Staff and the City's Building Official in the next few weeks to discuss certain aspects of the construction and building codes. There has been continued concern on the part of Met Council and MN DOT that bringing our station on -line so quickly may cause problems with their Full Funding Grant Agreement. The NCDA and the Federal Transit Administration did not appear to have a problem with the timing or funding or our station, as it is independent of the FFGA. It appears (see attached correspondence) that the Met Council and MN DOT are being somewhat uncooperative in our effort to get our station open with the rest of the line. I will provide a verbal update on this issue at next week's meeting. �N it C c L!r 7. July 1, 2008 Cyrell R. McLemore U.S. Department of Transportation Federal Transit Administration 200 West Adams St., STE #320 Chicago, Illinois 60606 -5253 Re: Fridley Station Dear Cyrell: At the Northstar Quarterly Meeting on June 18, 2007, you requested information regarding the proposed Fridley Station. As you know, the Fridley Station was removed from the Northstar Project in 2007. At that time, the environmental review process including the Record of Decision and the BNSF Easements and Agreements do include the Fridley Station. The NCDA is currently in the process of planning for the implementation of the Fridley Station to be funded totally with local funding and no federal funds. The right-of-way for the park -& -ride on the west side of the tracks has been purchased by Anoka County Regional Railroad Authority, using local tax dollars. The right -of -way on the east side has been purchased by the Fridley Housing and Redevelopment Authority, using local tax dollars. Additionally, ACRRA entered into an agreement with BNSF for the construction of a tunnel that will be necessary to con_ nect the park -& -rides to the center platform. This construction was completed in early June of this year in order to avoid disruption of commuter service at a later date. The ACRRA has paid the costs of the tunnel with local tax dollars, outside the scope of the FFGA. The tunnel construction has been completed and . the access capped and secured until commuter service commences. Northstar Corridor Development Authority 2100 31 Avenue, Anoka, Minnesota 55303 -2265 (763) 323 -5700 Fax: (763) 323 -5682 www.northstartrain.org July 1, 2008 Page 2 You further asked for our plans for implementation of the Fridley Station. If the NCDA can obtain local funding for the construction of the station, it would best serve the residents and businesses of the corridor to have the project online in November, 2009, when Northstar commuter rail begins revenue operations. It is our intent to proceed with the Fridley Station build -out completely fire walled outside of the scope and funding of the FFGA. While there are discussions regarding additional stations and the Phase 11 extension to St. Cloud, there are no plans for implementation in the near future. Please let me know if you have any further questions. Sincerely, Tim Yantos Executive Director TY /kk cc: Project Management Team Metropolitan Council Opp; � July 21, 2008 Cyrell R. McLemore U.S. Department of Transportation Federal Transit Administration 200 West Adams Street, Suite 320 Chicago,lllinois 60606 -5253 Re: Fridley Station Deaf Mr. McLemore, Minnesota Department of Transportation and the Metropolitan Council want to take this opportunity to provide further follow -up information to the Federal Transit Administration regarding deferred Fridley Station in response to your initial request.at the Northstar quarterly meeting June 18, 2008. We greatly value the Northstar Corridor Development Authority's (NCDA) long- standing diligence and steadfast advocacy of the Northstar Commuter Rail line. Without eleven years of their focus to bring Minnesota's first commuter rail line to reality, we would not be having monthly progress meetings with FTA. Nevertheless, it is important to'emphasize that the Minnesota Department of Transportation is the lead project sponsor and Full Funding Grantee. The Metropolitan Council is the owner and responsible agency for operating Northstar as revenue service begins in late 2009. As the project principals, we would like to assure FTA that service to the proposed Fridley Station will not commence unless and until any issues FTA might have are addressed. Having said that, we respectfully request FTA to respond to NCDA's July 1, 2008 letter stating its intent to implement the Fridley Station concurrent with the initiation of revenue service for the Northstar Commuter Rail line. As federal grantee and owner, we are requesting FTA to confirm that there will be no adverse consequences to the Northstar Full Funding Grant resulting from bringing Fridley Station online at the same time as the Northstar Project begins service. Sincere ' ant Sahebjam Deputy Commissioner Minnesota Department of Transportation cc: Tim Yantos Mark Fuhrmann 'Tom Weaver Regional Administrator Metropolitan Council www.metr000undl.org 390 Robert street North • st. Paul, MN 55101 -1805 • (651) 602 -1400 o Pax (651) 602 -1550 • TTY.(651) 291 -0904 An Pgaa[ OppwUOftY &mptager • FRIDLEY MUNICIPAL CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY, MN 55432 (763) 571 -3450 • FAX (763) 571 -1287 • TMfITY (763) 572 -3534 July 21, 2008 The Honorable Norm Coleman 320 Hart Senate Office Building Washington, D.C. 20510-2303. Dear Senator Coleman: The purpose of this letter is to respectfully request your assistance in getting the City of Fridley's proposed Northstar Commuter Rail Station to open with the rest of the line in the fall of 2009. The construction of Fridley's Rail Station is of utmost importance to all who live or work in Fridley and is the City Council's top priority. As you are well aware, the Fridley Northstar Commuter Rail Station was removed from the initial round of construction, and thus from the Federal Funding Grant Agreement (FFGA), early last year as overall project costs escalated due to negotiations with the Burlington Northern Santa Fe Railway (BNSF). The fees required by BNSF for use of their rails increased the project costs by approximately $10M dollars, requiring the Northstar Commuter Rail Development Authority to cut construction costs by an equal amount Because of Fridley's location near Minneapolis, proximity to the BNSF switching yards, and the expense caused by BNSF's insistence of a station built between the tracks, Fridley's station was removed from the initial round of construction being funded through the FFGA. Because of a strong demand for the station from residents and our large employers, including Medtronic and BAE Systems, the City has made a commitment to construct the station without Federal dollars in order to open with the rest of the line in the fall of 2009. To date, the City of Fridley has invested $3.2M to acquire the land on the East side of the tracks and the Anoka County Regional Rail Authority has invested over $2M to acquire .the land on the West side of the tracks and install a tunnel connecting the two parcels. We are quite optimistic that the remaining construction funding will become available in late October from the new %% sales tax money. The City strongly believes that your continued support is necessary to keep our station moving forward. Please contact and encourage our Northstar partners, namely the NCDA, the Metropolitan Council, and the Minnesota Department of Transportation to do whatever they can to bring our station online with the other 5 stations in 2009. Together we can make Fridley, the TC Region, and the State of Minnesota a better place to live and work. Sincerely, colt J. Lund obert Bamette Ann Bolkcom 4James Saeflce Dolores Varichak Mayor Councilmember Councilmember Councilmember Councilmember Page 1 of 2 Bolin, Paul From: Lund, Scott Sent: Wednesday, July 30, 2008 11:32 PM To: Bolin, Paul; Bums, Bill; Hickok, Scott; James Casserly Cc: Barnette, Robert; Bolkcom, Ann; Varichak, Dolores; Saefke, James Subject: RE: Fridley Station Letter All... I had a good conversation with Peter Bell, Met Council Chair this evening at the joint county/ elected officials meeting. I suggested the rumblings on the political street was Met Council's less than enthusiastic attitude for the Fridley station. He told me straight out that he and the council are in favor of our station and that the issue is with the FTA. The letter recently sent was to ensure clarification that the FFFGA would not be delayed with local funding of our station. The FTA is worried about setting a precedence. Mr. Bell said that WORST case scenario would be a delay of approximately 90 days after completion of Northstar. The funding by the FTA would be completed within this 90 day period and Fridley could then be built. I questioned what sense does it make to penalize the county and city when we are matching funds for our station. Instead the Feds should be thanking us for partially funding the station with the balance hopefully coming from the sales tax increase. He agreed that it is frustrating yet the Feds have there complicated formula's. Once there even appears to be any deviations form the formula's the Feds start recalculating their funding criteria. Mr. Bell reiterated this scenario later during his talk to the entire audience. The audience included four Met Council staff personnel, Tony Pistilli our district representative, five Anoka County commissioners along with numerous local officials. The take on this by all present was the Fridley station will happen! Council member Barnette was present as well and may have additional comments. Scott From: Bolin, Paul Sent: Thu 7/24/2008 10:04 AM To: Burns, Bill; Hickok, Scott; James Casserly; Lund, Scott Subject: Fridley Station Letter Just got this from Tim Yantos ..... almost like Met Council & MnDOT are asking the FTA to cause problems... Tatd Paul Bolin, AICP City of Fridley HRA 6431 University Avenue NE Fridley, MN 55432 D- 763- 572 -3591 8/1/2008 Page 2 of 2 From: Tim Yantos [mailto:Tim.Yantos @co.anoka.mn.us] Sent: Thursday, July 24, 2008 9:59 AM To: Bolin, Paul; Jim Kordiak Subject: Fwd: FW: Fridley Station Letter Hello, Jim and Paul - The attached letter was sent out without the knowledge and /or approval of the NCDA. I will call you later to discuss it with you. Thank you. Tim Yantos Executive Director ACRRA 2100 3rd Avenue Anoka, MN 55303 (763) 323 -5692 Fax: (763) 323 -5682 tpyantos @co.anoka.mn.us NOTICE: Unless restricted by law, email correspondence to and from Anoka County government offices may be public data subject to the Minnesota Data Practices Act and /or may be disclosed to third parties. 8/1/2008 ?4, ■A FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY August 7, 2008 1. Housing Sales Data Attached to this update is the most recent update of the housing market in Fridley, produced by the North Metro Realtors Association. This helps to quantify the tales of slow sales and decreased values we hear daily. 2. Foreclosures Our efforts to raise awareness of foreclosures through the informational pamphlet mailed out have paid off with a number of referrals to the MN Home Ownership Center and to ACCAP's Foreclosure Counselors. The day after the brochures were mailed out, the City received 16 calls and have continued to take calls ever since. The brochures have also resulted in a number of callers reporting potentially vacant properties and a number of persons asking for the HRA's Home Improvement Loan. applications. Dr. Bums has taken a keen interest in the Foreclosure problem and has just finished filming a second cable show on the topic. He has developed a good connection with the ACCAP Foreclosure Counselors and we are working with them (and the Cities of Columbia Heights, Hilltop, & Spring Lake Park) to host a Foreclosure counseling & information session on September 17f. The details are attached. 3. Home Loan Program / CEE Kristin DeGrande (our Loan Specialist) has taken a new position with the City of Coon Rapids. Kristin has been the one responsible for tracking our information and sending it to me each month in a user - friendly format Her former position is just being filled, and by next inonth we should start receiving our loan program information in a user friendly format again. In June and July, a total of 7 loans were closed. I will provide more detail at next weeks meeting. 4. Proposed Senior Building Staff recently met with Select Housing & Development Corporation of Lake Elmo to discuss their potential plans to construct a 138 unit specialized senior building on the comer of Old Central & Mississippi (the site Jon Demello tried to develop a few years ago). Select Housing plans to construct a combination of memory care and assisted living units. They are still negotiating on the last few properties and will then need to go before the City Council for a Plat and Master Plan Amendment. I will keep you updated as this project moves forward. 5. Gateway Northeast Land Acquisition I will provide verbal updates on the Alano Society negotiations and the Tae Kwan Do Center on Thursday night. If there are any items you would like covered in upcoming issues of the Non - Agenda Update please send me an e-mail. bohnp @ci.fridley.mn.us 11 p North Metro REALTORS '9 Association Fridley Housing Market Update July 2008 *Note; Please inform us if any new council members or staff should be added to our distribution list. Thank you. Greetings, You've been chosen to receive this monthly newsletter because of your important role in local government in Fridley. Our intent is to advance our region's understanding of the Twin Cities housing market and provide useful research tools for the policy arena. The downward trend in new home listings in the Twin Cities continued in June. In June 2008, there were 8,858 new listings, down 13.3 percent from June 2007. Year -to -date, there have been 6,720 fewer homes placed on the market than there were in 2007. In Fridley, the number of year -to -date new listings is 340, behind the same time last year by 11.0 percent. There have been 22 closed home sales, behind last year by 15.4 percent. For the entire Twin Cities region so far there have been 17,481 closed sales, compared to 20,044 last year. Year to date, Fridley has an average sales price in of$176,970, behind last year by 13.5 percent. The Twin Cities region as a whole has seen a decline of 10.8 percent in price for the same time period comparison. At the end of June, Fridley had 165 single - family detached units available on the market, with 51 townhouse or condominium units on the market as well. Twin Cities inventory is coming down, with 33,425 units on the market at month end for the entire region, down 3.5 percent from this time last year. We may have reached the bottom, but the market still faces some very real challenges, as do consumers More detailed information follows on the Fridley real estate market within this document. Thanks, Eric J. Myers Government Affairs Director North Metro REALTORS® Association 763.757.7230 eric(a)northmetro.com To unsubscribe to this newsletter, please respond to laura(anorthmetro.corn and place the word "REMOVE"in the subject line. Brought to you by the unique data - sharing traditions of the REALTORS community New Listings NOrM fVl eho REALTOR$ /Nssoctatton Fridley June Year to Date Anoka County, MN Closed Sales 2007 2008 Change 2007 2008 Change New Listings 67 68 +1.5% 382 340 -11.0% Closed Sales 25 22 -12.0% 123 104 -15.4% Average Sales Price $201,200 $177,746 -11.7% $204,662 $176,970 -13.5% Percent of Original List Price Received at Sale- 96.2% 95.6% -0.6% 95.5% 91.5% -4.2% Average Days on Market Until Sale 126 121 !s -3.6% ` 120 178 +47.9% Single - Family Detached Inventory 149 165 +10.7% - Townhouse -Condo Inventory 60 51 -15.0% – – – 'Does not account for list prices from any previous Ifsbngg contracts '-City market time figures were first available in August 2008, accounts for previous listing contracts Activity—Most Recent Month 67 E3 New Ustings Be ^1 --- a Activity —Year to Date 382 ® New Listings 2007 2008 Average Sales Price $201,200 Fm gnn7 $204,682 2007 2008 Ratio of Sales Price to Original List Price 96.2% 95.9% ® 2007 95.6% 910% June Year to Date Average Days on Market Until Sale June Year to Date Inventory of Homes for Sale 178 195 June Year to Date Single - Family Detached Townhouse -Condo Some of the figures referenced in this report are for only one month worth of activity. As such, they can sometimes look extreme due to the small sample size involved. For broader historical market information, please feel free to contact us. The 1000 is a trademark of the Minneapolis Area Association of REALTORS @. The North Metro REALTORS@ Association uses R under license. i r r FREE Foreclosure Workshop Open House Join us to receive foreclosure information and to talk with one of our Foreclosure Counselors. Wednesday, September 17, 2008 4:30 p.m. — 7:30 p.m. Fridley Community Center 6085 7th Street Fridley, NIN 55432 For questions or directions call: 763 - 783 -4880 FREE Financial Fitness Workshop • Credit Rebuilding • Budget Repair • Debt Reduction Thursday, September 18, 2008 6:00 p.m. — 9:00 p.m. Fridley Community Center 6085 7t' Street Fridlev. MN 55432 qW Foreclosure Prevention Counselors provided by:C Anoka County Community Action Program Website: www.acca�org Produced By: Cities of Fridley, Columbia Heights, Spring Lake Park, Hilltop, and ACCAP.