HRA 11/06/2008 - 6358� IAV c
November 6, 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 October 2, 2008 Meeting Minutes
3. Approval of 2009 Meeting Schedule
4. Approval of 2009 Home & Garden Show Admin. Contract
5. Approval of Resolution Adopting Construction Easement for NS Rail
Informational Items
1. Northstar Rail Station Update
2. Gateway Northeast Update
3. Housing Loan Program Update
Adjournment
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2008 Agenda Outline.doc
CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION
OCTOBER 2, 2008
CALL TO ORDER:
Chairperson Pro Tern Holm called the Housing and Redevelopment Authority to order at 7:00 p.m.
ROLL CALL:
MEMBERS PRESENT: William Holm, Steve Billings, John Meyer
MEMBERS ABSENT: Larry Commers, Pat Gabel
OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director
MOTION by Commissioner Billings to appoint Commissioner Holm as acting Chair. Seconded by
Commissioner Meyer.
UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM
HOLM DECLARED THE MOTION CARRIED.
ACTION ITEMS:
1. Approval of Expenditures
MOTION by Commissioner Billings to approve the expenditures as presented. Seconded by
Commissioner Meyer.
UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM
HOLM DECLARED THE MOTION CARRIED.
2. Approval of September 4, 2008 Meetine Minutes
MOTION by Commissioner Meyer to approve the minutes as presented. Seconded by
Commissioner Billings.
UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM
HOLM DECLARED THE MOTION CARRIED.
INFORMATIONAL ITEMS:
1. Northstar Rail Station Update
Paul Bolin, HRA Executive Assistant Director, said Fridley has been part of the Commuter Rail
Project since 1996 and there was not enough Federal Funding so the Fridley station was dropped
from that funding. Through local means such as the HRA and Anoka County Regional Rail
Authority ( ACRRA), Fridley is now on line with the rest of the stations to open in November of
2009. This week the ACRRA sent a memo to Counties Transit Improvement Board (CTIB)
I
regarding the 1/4% sales tax fund being used for transit improvements. We expect to hear something
about our allocation sometime in late October and our best estimate is that $9.9 million will be
available for Fridley from this funding source.
Mr. Bolin said that the numbers were revised from the last meeting and the overall cost is now
$133M which includes the land acquisition and tunnel. Tomorrow there is a meeting with our
attorney and the Anoka County attorney to develop needs for construction of our station. Staff is
optimistic we will receive funds and the ACRRA has authorized the final design work so we can
start the bidding process to open before the end of the year. Construction is to be complete by
September 2009, finalize by October of 2009 and ready for operation in November 2009. The bids
will be run by the ACRRA and the Anoka County Highway Department, it will be an open bidding
process.
Commissioner Meyer aside about the 1/4% sales tax and which agency decides who gets what
funding.
Mr. Bolin said that a Joint Powers Board made up of five counties put together a chart. The Board
oversees the process and is empowered by the legislature. An advisory to a smaller board with
representatives from cities within the counties also assists with this process and Mayor Lund is
involved with one of these groups.
Commissioner Meyer asked what how long the 1/4% tax rate will be enforced.
Mr. Bolin said that it will continue until the counties opt out.
Commissioner Meyer asked about the $9.9M and if it will be paid back in one year or 10. years.
Mr. Bolin said that the first round of revenues will be between 1/1/08 through the end of June 2009.
Commissioner Meyer asked what the others are using the funds for.
Mr. Bolin said that the funds must be used for transit improvements within the Metro area. These
funds will be available for the next number of years.
Chairperson Pro Tem Holm asked how fast the trains travel on the track.
Mr. Bolin answered about 65 mph. It is not likely for the trains to travel very fast through Fridley.
Chairperson Pro Tem Holm asked about the construction downtown Minneapolis and what is
happening with the interchange, light rail, rail and bus transportation.
Mr. Bolin said that a good portion is constructed and coming together along with the Twins
stadium.
Chairperson Pro Tem Holm commented that citizens could go from the Fridley station to
downtown Minneapolis to the airport or Mall of American.
Commissioner Meyer said that with the train tragedy in California, who is responsible on the
North Star Line for routing the trains and the overall safety and signals.
Mr. Bolin answered Burlington Northern will staff the engineers and do all the routing and
communications.
2. Gateway Northeast Update
Paul Bolin, HRA Assistant Executive Director, updated the following properties:
U II\ Be N , %1iZ17
In August Mr. Bolin was authorized to receive an appraisal for the Tae Kwan Do Building. He has
not had a chance to connect with Dan Wilson so he will provide a verbal update to HRA next week.
ALANO
The Alano Society has selected Skip Stuart to work with the City and realtor Mike Spahn is
authorized to continue working on negotiations. The Alano has a real interest in completing the
transaction within the next 30 -90 days.
SINCLAIR
Nothing new with this site; waiting for the Minnesota Pollution Control Agency to review and issue
a decision on the environmental work done by the Javelin Group.
SIKH SOCIETY
This site is moving forward with the development of their site. They intend to begin brushing and
grubbing this fall. Fundraising efforts continue and there is a strong desire for the City to purchase
their property.
DEMOLITION of STRUCTURES
In August/September there was discussion about taking the properties down this fall but it makes
sense to wait until next spring. Since the last meeting, the water lines have been shut off at the old
Van-o -lite building. If we wait until spring, the time clock won't start for getting a project going.
Staff is working with the Public Works Department to make signage for the sites that will explain to
neighbors, residents and passers by, that the area is part of a future redevelopment project. The
signs will be kept generic so they can be reused.
3. Housing Loan Program Update
Paul Bolin, HRA Assistant Executive Director, said that in September three revolving loans were
closed along with one other loan. Year to date 14 loans have been closed and it looks like two more
closings have been added. Remodel advisory visits were zero for September. Staff is working on
filming some updated commercials to run on the local government channel to promote loan
programs, energy saving tips etc.
Mr. Bolin said that last month HRA talked about the levy funds to pay down the loan from the City.
It is advised to pay off this loan as it was researched and there is no legal reason not to pay off the
loan. Until last year, HRA was earning more interest and leaving money in the bank. The interest
rate on the loan is 2.8 %. Staff thinks it would make sense to pay off the loan in February so HRA
will see this up for approval in the January register.
ADJOURNMENT:
MOTION by Commissioner Meyer to adjourn. Seconded by Commissioner Billings.
UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM
HOLM DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT
7:47 P.M.
Respectfully Submitted,
Krista Monsrud
Recording Secretary
COMMUNITY DEVELOPMENT
DEPARTMENT
PLANNING DIVISION
Memorandum
DATE: October 31, 2008
TO: HRA Commission Members
FROM: Julianne Beberg, Planning Assistant
SUBJECT: Proposed 2009 HRA Commission Meeting Dates
The following dates are for your review and approval of the proposed
2009 HRA Commission meeting dates.
Jan.
Feb.
Mar.
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
8
5
5
2
7
4
2
6
3
1
5
3
ACTION ITEM
ri HRA MEETING OF NOVEMBER 6, 2008
CITY OF
FRUXEY
Date: October 29, 2008
To: William Burns, Executive Director
From: Paul Bolin, Asst. Executive HRA Director
Subject: Home & Garden Show Admin. Contract
Background
The Fridley HRA has been the fiscal agent for the Home & Garden Show since its
inception 11 years ago. The Cities of New Brighton, Mounds View, and Blaine are
partners in sponsoring the show. The revenues from booth rentals more than cover all
of the expenses associated with the show.
Since the 2005 show, the group has contracted with Marsha Wagner (dba- Castle
Visions) to perform the administrative tasks necessary for producing the Show. Marsha
has become a valuable asset to those involved with the show.
The Home & Garden Show planning group would again like to contract with Marsha
Wagner for the 2009 Home & Garden Show. Marsha's rates are very reasonable and
the show generates adequate revenue to cover the cost of contracting with Marsha.
Staff Recommendation
Staff recommends that the HRA approve the contract between the HRA and Marsha
Wagner /Castle Visions to provide assistance with the 2009 Home and Garden Show,
as detailed in the attached contract.
CV Draft — 10/20/08
CUSTOMER CONTRACT
CLIENT NAME: Housing and Redevelopment Authority in and for the City of Fridley, 6431 University
Avenue N.E., Fridley MN 55432, 763-572-3591 (hereinafter referred to as "Client")
CONTRACTOR: CastleVisions, Young Quinlan Building, 81 S. 9t' Street, Suite 415, Minneapolis, MN
55402, 612 - 338 -2122 (hereinafter referred to as "Contractor")
SCOPE OF SERVICES: Contractor will provide administrative services as described in the attached
Schedule 1 - Services and Compensation and other administrative duties agreed to between the parties
during the term of the contract, all of which relate to the coordination of the 2009 North Metro Home and
Garden Show.
RATES: Contractor shall bill Client at the rate of $55.00 per hour for administrative services provided
during the term of this contract, as further described in the attached Schedule 1 - Services and
Compensation.
Rush projects or work performed on weekends or evenings (excluding services provided on the day of the
Show) will be performed at the rate of 150% of the hourly rate of the rush project.
The rates set forth in this Agreement will not be increased for at least one year from the date of the
agreement. Contractor reserves the right to increase its rates beyond that date with no less than 30 days'
advance written notice.
Contractor will invoice Client on a monthly basis for the duration of the project.
CONFIDENTIALITY: Contractor will keep confidential any and all documents of Client (electronic or
paper). Any and all documentation, information, files (electronic or paper) will be retumed to Client upon
completion of each project unless directed otherwise by Client.
APPOINTMENTS: Client shall deliver and pick up work by appointment only. Client shall pay a fee of
$55.00 for missed appointments (including over 1/2 hour late) unless Contractor is notified at least one
hour prior to the appointment.
CONSULTATION: Time spent conferring about Client's project shall be billed at the hourly rate of
$55.00.
CHARGES AND PAYMENT: Work shall be estimated according to the Industry Production Standards
established and published by the Association of Business Support Services Intemational Inc. and billed at
the rates described in Schedule 1. Because of the varying nature and unpredictability of different projects,
it is not possible to give formal estimates. Payment is due when client picks up the work, whether in draft
or final form (unless otherwise agreed to by Contractor). Payment for first -time customers should be made
in cash unless otherwise arranged. A fee of up to $100 may be charged for any retumed check.
Contractor shall retain work until payment is received.
In the event of changes to the scope of work or other factors outside of Contractor's control, Contractor
shall reserve the right to renegotiate this Agreement and collect for all services performed up to the date
of renegotiation.
PROOFREADING & REVISIONS: Work will be copy edited in pen on Client's rough draft unless Client
specifically requests otherwise. An updated printout of Client's document shall be retumed to Client for
proofreading, and the final copy printed only after Client approves the draft. Corrections and revisions
shall be billed at the regular hourly rate. Final responsibility for proofreading and approving the final
draft lies with Client. Contractor cannot be held liable for typographical omissions, content, etc.
Home Garden Show Admin Contract- 2009v2 10/20/2008
Client will include a hard (printed) copy of the most recent version of the document when submitting work
for revision, making any revisions directly on the copy in red pen. Client will also keep a copy at Client's
office for reference in case of telephone questions.
REPRESENTATIONS, WARRANTIES AND INDEMNIFICATION: Client shall indemnify, defend and
hold Contractor, its agents and employees, harmless from loss, damage, liability, claims, demands, suits,
and expenses, including but not limited to reasonable attorneys' fees, based on fines or penalties
resulting from any failure on the part of Client to comply with any laws, ordinances, rules or regulations or
failure to obtain licenses or permits as may be required on any patent, copyright, trade secret, or other
intellectual property or contract rights of any person or entity. In the event that any of the services
performed by Contractor are determined to be infringing, Contractor shall, at its own expense, modify or
replace the same so that it is not infringing, provided that the replacements and modifications shall
perform substantially the same as the replaced items.
STORAGE: Files will be stored on disk for one month at no charge. Resumes are stored permanently at
no charge. Client may purchase a disk and backup disk if planning to return for revisions after one month.
If Client brings work in on a floppy disk or cassette tapes, Client shall first make and retain a backup copy.
Contractor cannot be responsible for loss due to error or damage.
TERM AND TERMINATION: This Agreement shall commence on October .10, 2007, for one year and
may be terminated by either party upon two (2) weeks written notice to the other without cause and
further provided that either party hereto may terminate this Agreement immediately upon a breach by the
other of its duties hereunder. In the event of termination, Client shall pay contractor for all hours and
expenses accrued up to the date of termination. In the unlikely event litigation is commenced between the
parties of this Agreement, the party prevailing shall be entitled, in addition to other relief, to a reasonable
sum for attorney's fees.
APPROVED:
CASTLEVISIONS
By Ct
Marsha Wagner
President
Date: d [�
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF FRIDLEY
By:
Its: Chairperson
Date:
-2-
By:
Its: Executive Director
Date:
SCHEDULE 1
SERVICES AND COMPENSATION
A. Contractor will perform the following Services, as requested by Client, subject to the terms and
conditions of the Customer Contract:
1. Administrative services related to the coordination of the North Metro Home and Garden
Show, including the following specific duties:
a. Prepare Planning Committee meeting agendas and minutes
b. Vendor registration: mail registration materials and receive/track registrations
c. Coordinate marketing and advertising efforts
d. Event logistics
e. Sponsor solicitation
f. Coordinate workshops
g. Assistance at event
B. Contractor will provide no more than one hundred twenty (130) hours of services for client during
the term of this contract.
C. Payment for Services shall be at the following rates during the term of this Agreement:
• $55.00 per hour, not to exceed $7,150.00 during the entire term of the contract.
D. Reasonable expenses incurred by Contractor in performing Services will be subject to review and
approval by Client. These costs include postage, printing, signs, and other out -of- pocket
expenses.
E. All fees and approved expenses will be paid within thirty (30) days after receiving Contractor's
invoice.
0
w
ACTION ITEM .
ri HRA MEETING OF NOVEMBER 6, 2008
CRY OF
FRIDLEY
Date: October 30, 2008
To: William Bums, City Manager
From: Paul Bolin, Asst. Executive HRA Director
Scott Hickok, Community Development Director
Subiect: Northstar Rail Proiect Construction Easement & UDdate
Congratulations! After years of hard work and commitment to the Northstar Project, the
funding has been secured for the construction of the Fridley Station (a copy of the Star
Tribune article is attached). Now the real work begins. While things continue to move
forward at a rapid pace to open up with the test of the line in November 2009, there are
a number of negotiations /agreements that will need to be put in place over the next few
months.
The most pressing action for the HRA to approve is the issuance of a construction
easement for accessing the tunnel and installation of parking facilities. Attorney Cerney
has prepared the attached memorandum, copy of the easement document, and
resolution approving the issuance of the easement. Staff recommends adoption of the
attached resolution in order to keep up with the timeline necessary to open with the rest
of the line.
Over the next few months the HRA will also be asked to approve a long term lease
agreement with the Metropolitan Council for the use of the land located under the
parking. Attorney's Casserly & Cerney have been examining existing agreements used
on the other station sites and at some of Met Council's park and ride sites to ensure
that the lease will protect the HRA's interest in the site and not interfere with long term
HRA goals.
Site Design:
The engineering firm of Kimley -Horn Associates is meeting with City Planning &
Engineering staff on Friday afternoon to further discuss utility locations, ponding
requirements, landscape, and signage. I will.provide a verbal update on the outcome of
this meeting on Thursday night.
Northstar Legal Matters:
At this time, Staff has nothing new to report on the legal front.
Transit tax bears fruit as projects get money
Pagel of 3
0
�t s: s .y
Transit tax bears fruit as projects get money
By JIM FOTI and PAUL LEVY, Star Tribune staff writers
October 29, 2008
Tens of millions of dollars from the new transit tax will bring a commuter -rail stop to
Fridley, give the Northstar line $3.8 million in operating funds, and help keep the
commuter buses rolling out of Forest Lake to downtown Minneapolis.
The quarter -cent sales tax has been collected in Anoka, Dakota, Hennepin, Ramsey and
Washington counties since July 1, and the first grants — totaling $86 million — were
authorized Wednesday by the new transit board that oversees them.
Elsewhere in the metro, the transit tax funds will build a park- and -ride station in Apple
Valley and help stretch light -rail transit from Minneapolis to St. Paul. The biggest chunk of
money — nearly $31 million — goes to the Metropolitan Council so it can address Metro
Transit's operating deficit. This one -time payment is part of the state law that allowed the
counties to form the board and start collecting the tax.
Operating grants totaling $11.4 million were also given the OK. Most of the money — $7.5
million — is going to the operation of the Hiawatha light -rail line, with $3.8 million for
Northstar, the line that will run from Minneapolis to Big Lake and is slated to open in late
2009.
"We probably had an easier time this time around than we will in the future," said Dennis
Berg, an Anoka County Board member who heads up the committee that evaluates grant
applications.
Money for a Northstar station in Fridley was left out of both the federal funding for the
project and the state bonding bill this year.
Officials at Medtronic, the medical technology giant based in Fridley, stressed its
commercial potential. But the Federal Transit Administration would only allow the Fridley
station to be built if 100 percent of the $9.9 million cost was paid with local funds and if
the work wouldn't delay the line's construction. Now the station will be built.
"It was always on the A list, always a high priority," said Tim Yantos, executive director of
the Northstar corridor project. "We just ran out of time to put it out there with the other
federally funded projects of Northstar."
At first, Burlington Northern Santa Fe balked at the suggestion of a Fridley station
because of its proximity to the Burlington Northern's Northtown freight yard, Yantos said.
By the time issues with Burlington Northern could be fully addressed, the opportunity for
http:// www. startribune.com/templates/Print This_Story?sid= 33547414 10/30/2008
,. Transit tax bears fruit as projects get money
federally funding the station had evaporated.
Page 2 of 3
Persistence and intervention by the Counties Transit Improvement Board kept the Fridley
station alive, Yantos said.
A Foley Boulevard station in Coon Rapids and another station in Ramsey are still
possible, as is a commuter rail line to Cambridge, Yantos said.
"Right now, people in Anoka County should be very happy," he said. "The Fridley station
will serve the public well."
$1 M for Washington County
Washington County plans to preserve the bus route from Forest Lake to Minneapolis with
its share of the new transit sales tax. That service was started with federal money after
the Interstate 35W bridge collapse, but now that the new bridge is in place, the
emergency funds are no longer available.
The $1 million that the county will be getting in 2009 will help finance buses on Route 288
until the Metropolitan Council can take the route over in 2010, said Dennis Hegberg,
chair of the Washington County Board.
Anoka County has agreed to help fund the service next year as well, he said after
Wednesday's meeting. "I'm very confident right now," Hegberg said of the route's
survival.
The grants in this first round have some immediacy, often because of state or federal
strings.
The Central Corridor's application for federal funding needed to go to Washington, D.C.,
with assurances that the local portion was covered, hence that initial $26 million
authorization. The Apple Valley station is part of a sweeping federal effort to improve
north -south transportation south of downtown Minneapolis, and most components need
to be finished by the end of next year.
The sales tax has been projected to raise $24 million this year and $86 million next year.
A $20 excise tax on vehicle sales is slated to bring in another $5 million in 2009. Those
numbers may be smaller because of the economy.
Peter McLaughlin, the Hennepin County commissioner who chairs the transit board, says
the board is being careful in its spending and will avoid trying to issue bonds. "We want to
use cash as long as we can," he said.
Staff writer Kevin Giles contributed to this report. Jim Foti - 612 - 673 -4491 Paul Levy -
612- 673 -4419
http:// www .startribune.com/templates/Print This_Story?sid= 33547414 10/30/2008
K MMONROE
�S
James R. Casserly
jcasse0y@krassmonroe.com
Direct 952.885.1296
Gay L. Cemey
gcemey @krassmonroe.com
Direct 952.885.4393
MEMORANDUM
To: Fridley HRA
Attn: Paul Bolin, Assistant Executive Director
From: Gay L. Cemey, Esq.
James R. Cassedy, Esq
Date: October 29, 2008
Re: Northstar —Surface Parking Lot
Our File No. 9571 -71
As you know, the Fridley HRA has acquired title to the former Main Street Fridley
Properties, LLC site which will be adjacent to the future Northstar commuter rail station.
The Anoka County Regional Railroad Authority ( "ACRRA ") plans to construct a surface
parking lot on the site, and has requested that the Fridley HRA grant it a temporary
construction easement to allow it to construct the parking lot.
The grant of the construction easement will serve another function as well. It will
show that ACRRA is putting in place the land rights necessary for operation of
Northstar, which is one of the steps required to be in place for the Counties Transit
Improvement Board ( "CTIB ") to fund grants to ACRRA for the construction of certain
Northstar facilities.
We have prepared a Temporary Construction Easement and it is attached to this
memorandum. A resolution to be adopted by the HRA Board authorizing execution and
delivery of the Easement is also attached.
The Temporary Construction Easement will eventually be replaced by a long-
term ground lease between the Fridley HRA and ACRRA. Once the parking lot is
completed, ACRRA will assign the lease to the Metropolitan Council, which will operate
Northstar. We are in the process of drafting this ground lease, which will need to be
8000 Norman Center Drive, Suite 1000
Minneapolis, Minnesota 55437 -1178
TEL 952.885.5999 Fax 952.885.5969
www.krassmonroa.com
L
negotiated with ACRRA and the Metropolitan Council before its approval by the HRA
Board.
9571 -71 Bolin GLC JRC 10 -29-08
KM: 4826 - 9794 -7395, 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.
A RESOLUTION AUTHORIZING THE GRANTING OF A TEMPORARY
CONSTRUCTION EASEMENT TO THE ANOKA COUNTY REGIONAL
RAILROAD AUTHORITY
BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing
and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority") as
follows:
Section 1. Recitals.
1.01. It has been proposed that the Authority grant a Temporary Construction
Easement (the "Easement ") to the Anoka County Regional Railroad Authority ( "ACRRA ").
for the construction of a surface parking lot on the former Main Street Fridley Properties,
LLC site, which site is now owned by the Authority. The parking lot will be used in
connection with the commuter rail station to be located adjacent to the site.
Section 2. Findings.
2.01 The Authority finds that it has approved and adopted a redevelopment
program known as the Modified Redevelopment Plan and established Redevelopment
Project No. 1 (the "Project Area ") pursuant to Minnesota Statutes, Section 469.001 et seq.,
as amended and supplemented from time to time.
2.02 The site is located within the Project Area, and the Authority finds that
granting of the Easement and construction of the parking lot promote the objectives set
forth in its redevelopment program.
Section 3. Authorization for Execution and Delivery.
3.01 The Chairman and the Executive Director (the "Officers ") of the Authority are
hereby authorized to execute and deliver the Easement when the following condition is
met:
Page 2 - Resolution No.
Substantial conformity of the Easement to the form of
Easement presented to the Authority as of this date, with such
additions and modifications as the Officers may deem
necessary or desirable as evidenced by their execution of the
Easement.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF FRIDLEY THIS DAY OF , 2008.
Lawrence R. Commers, Chairman
ATTEST:
William W. Bums, Executive Director
9571- 71/RESOL AUTHG CONSTRUCTION EASEMENT
KM: 4824 -7931 -9299, v. 1
TEMPORARY CONSTRUCTION EASEMENT
(FRIDLEY HRA TO ACRRA)
THIS DECLARATION OF TEMPORARY CONSTRUCTION EASEMENT
( "Declaration "), is made as of this day of , 2008, by and between
the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a
political subdivision of the State of Minnesota ( "GRANTOR "), and the Anoka County
Regional Railroad Authority, a regional railroad authority organized and existing as a
political subdivision and local government unit pursuant to Minnesota Statutes, Section
398A.03 ( "GRANTEE ").
WITNESSETH:
WHEREAS, the Metropolitan Council, a political subdivision of the State of
Minnesota, will operate a commuter rail station on properly located in the City of Fridley,
County of Anoka, State of Minnesota;
WHEREAS, for the benefit of the Metropolitan Council, the GRANTEE would like
to construct surface parking on property which is legally described in Exhibit A attached
hereto (the "Parking Property ") to provide parking for passengers using the commuter
rail station;
WHEREAS, the GRANTOR owns the Parking Property; and
WHEREAS, the GRANTEE has requested that the GRANTOR convey to the
GRANTEE a temporary easement over the Parking Property to enable the GRANTEE
to construct a surface parking lot on the Parking Property.
NOW, THEREFORE, the parties agree as follows:
1. CREATION OF EASEMENT. In consideration of the sum of One Dollar
($1.00) and other good and valuable consideration to GRANTOR from GRANTEE,
receipt of which is hereby acknowledged; and subject to the terms and conditions
contained herein, the GRANTOR hereby grants and conveys to the GRANTEE a
IN
temporary easement over the Parking Property for the purpose of constructing a surface
parking lot, a diagram of which parking lot is attached hereto as Exhibit B.
2. TERM. This grant of easement shall expire on the date that is two (2)
years from the date hereof.
3. INDEMNIFICATION. Each of GRANTOR and GRANTEE (an
"Indemnifying Party ") will indemnify and hold harmless the other and the other's
successors and assigns from and against any and all claims, actions, damages, liability
and expense, including without limitation reasonable attorney's fees, in connection with
loss of life, personal injury or damage to property occasioned wholly or in part by any
act or omission of the Indemnifying Party or its agents, employees or invitees.
IN WITNESS WHEREOF, the parties have caused this instrument to be
executed as the day and year first above written.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF FRIDLEY, MINNESOTA
By
Its Chairman
By
Its Executive Director
STATE OF MINNESOTA )
) ss
COUNTY OF ANOKA )
On this day of , 2008 before me, a notary public within
and for Anoka County, personally appeared William W. Burns and Lawrence R.
Commers, to me personally known who by me duly swom, did say that they are the
Chairman and Executive Director of the Housing and Redevelopment Authority in and
for the City of Fridley, Minnesota, a political subdivision of the State of Minnesota, and
acknowledged the foregoing instrument on behalf of said Authority.
Notary Public
2
ANOKA COUNTY REGIONAL RAILROAD
AUTHORITY
By
Its
By
Its
STATE OF MINNESOTA )
) ss
COUNTY OF ANOKA )
On this day of , 2008 before me, a notary public within
and for Anoka County, personally appeared and
, to me personally known who by me duly sworn, did say that
they are the and of the Anoka
County Regional Railroad Authority, a political subdivision of the State of Minnesota,
and acknowledged the foregoing instrument on behalf of said Authority.
Notary Public
AFTER RECORDING RETURN TO:
Anoka County Regional Railroad Authority
Government Center
2100 3`d Avenue
Anoka, MN 55303
THIS INSTRUMENT WAS DRAFTED BY:
Krass Monroe P. A.
8000 Norman Center Drive, Suite 1000
Minneapolis, MN 55437
(952) 885 -5966
3
11 -
EXHIBIT A
Parking Property
Ln2l Deacriptictt: All of Lot 6, Auditor's SubdWsian No. 78, C4 ofFddiey, Anoka Commty, Miaaesota, meptwg tho
South 2=,0 ff;et of the asst 363.0 feat thmv4 w measured along the East and 9outb limes of said Lot 64 stud wmptlttg
the West 13 foot offhe east 376 feat oftbs Soutt 200 feet ofLot 6. Ands ces 3ubdivisioa No.78. as atr=4*d along to
east and Swath lines of i at 6. AM, thatpmttott of Lot 8. Auditor's SubdiviAcd Na. 78, Ctiy of FMeY, Atmlta Cownty,
M=mota, desomW as follows: Cm=enaing A the intmsdiou of the West righwt- -way lice of Main Sireei, acaorditcg
to the rcuordW pin tlzero4 mditMba6Ike of said Sloa1t8; flicwo Souewlyslong ai idri& -o Tway Tine a distance
of 30.0 Lod to t3ta Trw Point of Begun 4 of the parosi to 64 d=14 tta'xtas 0m4lauing &m&imdy along said West
sigl ,of -way lies to be paint ofintmealimswft the South liter of m1d Lot 8, ftx* Wesftlyalong said SmOt Bite of
Lot 8 to the poiat of ixttersection v th a Tice drewnpumMel vA sad distance 75.10 feet Esstcdy of, as mmtorred at right
angiWtD, RuchnStan umt menu Rml-md Compm -e; ( Iy Greatlottitaru Rm'hmy CozapaWs) hmhffw d=ibed
Mein 7h& eanbrU na; flteuce Nom+ pesallol whh said M&M Traokaeular7lac to tine 1mud of fritar awtimvith said
Nor& Ike ofLitt 8; tbmaoe Batdarly tdang said A mffi liw a distaaae of 143.85 feat; ffmca Soudwlyper jw wltis said
Bast line Of Lot 8 a di bmw of 30.0 feet; thus 13astedy panne) with Wd Nortb lbz of Lot 8 to the Tmc Point of
Eaomft AL3o, ttt postlou da mlmd in Taaebs as follows: All fimt part of the notflteast Quay= (NM14) offhe
14mdm .t Quartor (NE % :) of 8ecdon 22. Tommh[p 30, Ram 24, lying Bastorly of tits Norfhma PaotEe Railway
ConWwf s right of way, lylag South of a He wbioh is parallel wig the Nw& he of said Nordmast quarter (NB A) of
Norlfreast quarter M ti') and 290.4 #sot so& of add North line as mmaced dons ft But Ike of ssid Mcut ew
quarter OMMttassi quarter 06 %< , snd lying North of a Tints wldoh Is ptaaliol will the Baud► lip of said Nmtiteast
gmtw (NB io of woraud quatr 00 Y) mad 739.2 fimt Norht ofwA gm alb %w ss ==md slog said Bset ]inn.
Mm TrackC Cow atftN co= of Swdm 27, Township 30 Nor%Rags 24
Welt of tlso 4e P24 Anoka. , Mi* watt t u=v Westerly akmgfias Noah Hw a1mw swdott 22 s abnas of
633.5 feet to the 1Yne Pointofl g of8m Mait1 Traci ate Lobe desorPbed; tl &n&*, detloo ttg86
35, to t ae Left, to the point ofirtmwoobs with Am Sault lbw ofthe ATE rI N8'/, of add Sang 22 and tf ra wcubaimg.,
County of Aaol %Ababob'i'acm PropmV, Cie# 84003.
EXHIBIT B
Diagram of Surface Parking Lot
9571- 71ifempomry oonstmdon easement HRA to ACRRA
KM: 4816 -3639 -1171, v. 1
5
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QTY OF
FUREY
INFORMATIONAL ITEM
HRA MEETING
NOVEMBER 612008
Date: October 30, 2008
To: William Bums, City Manager
From: Paul Bolin, Asst. Executive HRA Director
Scott Hickok, Community Development Director
Subject: Gateway Northeast Property Acquisition Update
I will be able to provide some more detail at next week's meeting, but there has been
some positive movement on our acquisitions.
Alano Society:
The Alano Society has supposedly signed the purchase agreement, with two minor
changes. They did not elaborate on their proposed changes, but stated they were very
minor. We are awaiting a copy of the purchase agreement and will bring it forward on
Thursday night.
The Alano Society has also moved forward with signing a purchase agreement for the
brick building located just south of 63`d Avenue along the frontage road (6299 University
Ave.).
Tae Kwan Do:
Dan Wilson Aid present an offer to Mr. Kim, based .on the most recent appraisal. The
amount offered was inclusive of and /or in lieu of any additional money for relocation.
Mr. Kim has again indicated that he was not happy with this offer, but has not yet made
any counter - proposal.
Sinclair:
We are still waiting for the Minnesota Pollution Control Agency to review and issue a
decision on the environmental work done by the Javelin Group. It appears they must
be getting close, as I had received a "Potential Receptor Survey" earlier this past week.
All title work for this site has been completed and if there are no surprises in the MPCA
ruling we will be able to close on this property immediately.
r
Fridley HRA
Housing Program Summary
Cover Page
November 6, 2008 HRA Meeting
Report Description
Loan Application Summary Loan application activity (e.g. mailed
out, in process, closed loans) for
October and year -to -date.
Loan Origination Report
Remodeling Advisor
Loan originations for October and year -
to -date.
Shows the number of field appointments
scheduled and completed the
Remodeling Advisor Services
administered by Center for Energy and
Environment.
H:\—Paul's DocumentsU-IRAUIRA Agenda Items\2008\November 6, 2008\Housing Program Cover PabeNov6008.doc
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. Fridley HRA
Loan Origination Report
October 27, 2008
Loan Originations
-
0%
Kitchen remodel
-
0%
This
1
Previous
Heating system
7
Month
Electrical system
Months
YTD
HRA Loans Cincl. CFUF Discount loans)
1
0%
13
14
HRA Deferred Loans
-
-
-
-
Other Loans (non -HRA)
0%
Foundation
3
3
Total
1
16
17
Funding Sources
This
Previous
Month
Months
YTD
Fridley HRA
$ 3,984.00
$
146,017.00
$ 150,001.00
MHFA
$ 34,150.00
$
13,708.00
$ 47,858.00
Met Council
$ -
$
-
$ -
CDBG/HOME
$ -
$
-
$ -
CEE
$
2,895.00
$ 2,895.00,
Other
$
$
$
Total
$ 38,134.00
$
162,620.00
$ 200,754.00
Types of Units Improved*
'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 16 17
Duplex - - -
Tri-Plex - - -
4 to 9 Units - - -
10 to 20 Units - - -
20+ Units - - -
Total 1 16 17
Types of Improvements
Interior # of Projects % of Total
Bathroom remodel
-
0%
Kitchen remodel
-
0%
General plumbing
1
5%
Heating system
7
33%
Electrical system
-
0%
Basement finish
-
0%
Insulation
1
5%
Room addition
-
0%
Misc. Interior projects
-
0%
Foundation
1
5%
Exterior
Siding/Fascia/Soffit
3 14%
Roofing
2 10%
Windows/Doors
6 29%
Garage
- 0%
Driveway /sidewalk
- 0%
Landscaping
- 0%
Misc. exterior projects
- 0%
Fridley HRA
Performance Report
October 27, 2008
Loans 50 14 28%
Loan Volume $500,000 $ 150,001.00 30% $349,999.00
Origination Fees $27,500 $7,700.00
Inspection Fees $2,800 $0
$30,300 $7,700.00 25%
Loans 20 0 0%
Loan Volume $200,000 $0.00 0% $200,000.00
Origination Fees $11,000 $0.00
Inspection Fees $2,800 $0
$13,800 $0.00 0%
All Programs $5,000.00 $0.00 0% $5,000.00
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FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY
November 6, 2008
iceia�ic��
1. Columbia Arena Site
Community Development Director Hickok met with a large developer that is working on purchasing the
Columbia Arena. The developer is looking to bring a medical facility and senior housing to the site. I
will keep you updated as more details are learned.
2. Foreclosure NRP
Anoka County received $2.3 M in Federal Neighborhood Stabilization Program (NSP) funds to address
housing needs in communities with "greatest need ". This program mirrors CDBG in much of its
administration but has components that are very different and specific.
HUD just developed the guidelines for the program earlier this month and Anoka County is scrambling
to update their housing action plan to take advantage of this opportunity. I have attached a brief
summary of the program to this update. In a nutshell, the funds can be given to cities for the purposes of
purchasing & rehabbing foreclosed properties, demolishing blighted properties, providing
downpayment /fix -up assistance to purchasers with qualified incomes, and land bank properties for future
development
It is likely that these funds will become available in January /February of 2009. We will continue to work
with Anoka County to learn more about the mechanics of the program as they get more information
from HUD and intend to take advantage of this program. I plan to further discuss this program, and
what eligible uses may be best for Fridley, at the December HI LA meeting.
3. Gateway West Update
I had reported to you over the past couple of months that the PW Department had saved the HRA
approximately $6,000 in street paving costs. I had also reported that the PW Department has been able to
convince Burger King to split the cost of doing a mill and overlay of the stretch of 3`d Street between 57"'
Avenue and 57`h Place and that for $2,400 the HRA would have a newly paved street along the entire
length of the Gateway West Project from 57'' Avenue up to 60`h Avenue.
The $6,000 savings was due to an error on the part of the person responsible for the bidding, resulting in
the northerly most 200' not being milled and overlaid (M & O). It would now be $8,700 to mill and
overlay this small piece of roadway at this time of the year. I have expressed displeasure at this costly
mistake. I would recommend that the HRA now wait until approximately 2010 for this piece to be M &
O'd as part of a future street project that will be related to upgrades along 61' Avenue to accommodate
Northstar related traffic.
The PW Director has also agreed to pay the $2,400, which was going to be the HRA's share, for the M &
O adjacent to Burger King on 3`d Street
4. Comforts of Home — Memory Care
Staff has not heard anything more on this potential development since meeting with them in September.
11
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
iii
Federal Neighborhood Stabilization Program (NSP)
October 2008
1. Background:
a. Title III of Division B of the Housing and Economic Recovery Act, 2008 (HERA)
b. Section 2301— Emergency Assistance for the Redevelopment of Abandoned and
Foreclosed homes
c. HUD has named it the Neighborhood Stabilization Program or NSP
2. Regulations:
a. Treated as CDBG funds, all CDBG regs apply,
i. Environmental
ii. Prevailing Wage
iii. Historic Review
iv. Uniform Relocatio /104(d)
v. Program Income and Real Property
b. HERA alters several key CDBG provisions, such as:
i. Income allowed up to 120% ANII
ii. Shortened Citizen Participation Program
iii. Limited use of funds
iv. Land Banking
v. 104(d) Unit Replacement not required
vi. New housing construction is eligible
vii. Full Rehabilitation standards
viii. No -profit provision placed on developers, lender, local govt, etc.
3. Allocations:
a_ Anoka County $2,377,310
b. No less than 25% of allocation or $594,330 must serve households below 50%
A1VII
c. Considered a Special Allocation of the 2008 Program Year and requires that
Anoka County Amend its 2008 CDBG Action Plan.
4. Local Distribution:
a. NSP requires that Anoka County must target funds to give priority emphasis and
consideration to areas with greatest need, including those:
i. With the greatest percentage of home foreclosures
ii. With the highest percentage of homes financed by a subprime mortgage
related loan; and
iii. Identified as likely to face a significant rise in the rate of home
foreclosures
b. HUD has directed that funds not be committed on a city level but further target
neighborhoods or census tracks identified
c. HUD was required to determine greatest need for allocation to grantee; grantees
are required to determine greatest need on local level.
5. Timeline:
a. Citizen Participation process — Public Notice requires 15 days, 10/31/08 to
11/14/08. Anoka Union and Anoka County web page.
b. HRA Board Meeting 11/18/2008
c. Action Plan to HUD MPLS office no later than 12/01/08
d. HUD has 45 days to review
e. Set up in Federal Disaster Recovery Grants Reporting System
f. Expect to see federal funds near 02/01/09
g. 18 months allowed to use 100% of funds
h. 4 years to expend all funds including program income
6. Continued Affordability:
a. Affordable Rents defined as Fair Market Rent
b. Substandard condition outlined
c. Enforcement documents required upon home
d. Minimum HOME Program standards
e. Homebuyers must get 8 hours of housing counseling
7. National Objective Issues:
a. HERA directs that all funds be used to benefit individuals at or below 120% of
area median income
b. Slum/blight and urgent need national objectives are not eligible
c. Not less than 25% of funds available must be used for housing activities that
benefit individuals whose incomes do not exceed 50% of area median income.
8. Eligible use of NSP funding:
a. Anoka County may use up to 10% for administration of NSP
b. Five eligible uses specified by HERA:
i. Establish financing mechanism for purchase & redevelopment of
foreclosed upon homes and residential properties
1. Financing of an NSP eligible activity, to carry out that activity, is
eligible as part of that activity
ii. Purchase and rehabilitation homes and residential properties that have
been abandoned or foreclosed upon, in order to sell, rent, or redevelop
such homes and properties.
1. Acquisition, disposition, relocation, direct home buyer assistance,
eligible rehabilitation
iii. Establish land banks for homes that have been foreclosed upon
1. all land banked must be redeveloped and meet HUD requirements
by 2018.
2. land must be located in an area that meets the LMA national
objective.
iv. Demolish blighted structures
1. clearance for blighted structures that meet substandard definition
and will be redeveloped to meet LMH nation obj.
v. Redevelop demolished or vacant properties
1. acquisition, disposition, relocation, new housing construction,
down payment assistance
9. Ineligible use of NSP funding:
a. If it is ineligible under CDBG it is ineligible under NSP
b. Not eligible under HERA:
i. Foreclosure prevention activities
ii. Demolition of non - blighted structures
iii. Purchase of properties not abandoned or foreclosed upon
iv. Shelters
10. NSP Income Targeting:
a. Income eligibility of participants benefiting from NSP based on 120% of area
median Income
b. 25% of funds must be used to assist benefits at or below 50% of area median
income
11. Purchase of homes with NSP:
a. Any purchase of a foreclosed upon home or residential property under this
program is required to be purchased at a discount from the current market
appraised value of the home or property
b. Current condition must be taken into account
c. Value is required to be established through an appraisal made in conformity with
the appraisal requirements of the URA and must have been completed within 60
days prior to an offer
d. Anoka County must meet a 15% discount on its portfolio
12. Rehabilitation Standards:
a. Any rehabilitation of a property should be to the extent necessary to comply with
applicable laws, codes and other requirements.
b. Rehabilitation may include improvements to increase the energy efficiency
13. Sale of NSP homes
a. The sale of an abandoned or foreclosed home or residential property to an
individual as a primary residence must be in an amount equal to or less than the
cost to acquire and redevelop or rehabilitation such home or property up to a
decent, safe, and habitable condition.
14. Program Income (PI)
a. Anoka County will have limited use of PI based on type of project and timing.
b. CDBG Real Property PI regulations apply, in addition to NSP requirements that
PI be returned to HUD after 2013.
15. Audit:
a. NSP funds are subject to Single -Audit
b. Inspector General will be our new friend
c. At the end of the day, HUD will be looking at how many housing units were
created!
50 % 28,300
32,350
36,400
40,450
43,700
146,900
150,150
53,400
120% 67,950
77,650
87,350
97,100
104,850
112,600
120,400
128,150
11. Purchase of homes with NSP:
a. Any purchase of a foreclosed upon home or residential property under this
program is required to be purchased at a discount from the current market
appraised value of the home or property
b. Current condition must be taken into account
c. Value is required to be established through an appraisal made in conformity with
the appraisal requirements of the URA and must have been completed within 60
days prior to an offer
d. Anoka County must meet a 15% discount on its portfolio
12. Rehabilitation Standards:
a. Any rehabilitation of a property should be to the extent necessary to comply with
applicable laws, codes and other requirements.
b. Rehabilitation may include improvements to increase the energy efficiency
13. Sale of NSP homes
a. The sale of an abandoned or foreclosed home or residential property to an
individual as a primary residence must be in an amount equal to or less than the
cost to acquire and redevelop or rehabilitation such home or property up to a
decent, safe, and habitable condition.
14. Program Income (PI)
a. Anoka County will have limited use of PI based on type of project and timing.
b. CDBG Real Property PI regulations apply, in addition to NSP requirements that
PI be returned to HUD after 2013.
15. Audit:
a. NSP funds are subject to Single -Audit
b. Inspector General will be our new friend
c. At the end of the day, HUD will be looking at how many housing units were
created!
Areas of Greatest .Need
NOU"IMN
COON RAPIDS
Legend
_ Cities
Census Block Groups
Degree of Need
Lowest
D
Medium
Highest
as
FRIDLEY
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SEIGSTS