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HRA 09/04/2008 - 30950i ^ CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION SEPTEMBER 4. 2008 CALL TO ORDER: Chairperson Commers called the Housing and Redevelopment Authority to order at 7:05 p.m. ROLL CALL: MEMBERS PRESENT: William Holm Pat Gabel Larry Commers Steve Billings John Meyer OTHERS PRESENT: Mike Jeziorski, Accountant William Burns, City Manager Paul Bolin, HRA Assistant Executive Director Scott Hickok, Community Development Director ACTION ITEMS: 1. Approval of Expenditures MOTION by Commissioner Gabel to approve the expenditures as presented. Seconded by Commissioner Holm. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. 2. Approval of August 7, 2008 Meeting Minutes MOTION by Commissioner Holm to approve the minutes as presented. Seconded by Commissioner Gabel. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. 3. Approval of 2008 Taz Levy for Tazes Payable in 2009 Paul Bolin, HRA Assistant Executive Director, presented a consideration of a tax levy for taxes payable in 2009. Since 1996, HRA levy has supported housing rehabilitation programs in Fridley. The levy is used to make payments on a$1.5 million loan given by the City to fund the Revolving Loan Fund. Mr. Bolin said that the balance of the loan is now $277,560. Minnesota Legislature increased levy rates for HRA's. The old levy was equal to .0144% of the taxable mazket value and the new levy is equal to .0185% of the taxable market value. The 20091evy will allow HRA to collect $499,757. Mr. Bolin said that the impact on taxpayer for a$200,000 home would increase to $37.00 and a$1.0 million commercial property would increase to $185.00. Staff recommends approval of the resolution consenting to the HRA Tax Levy at the new rate as it will provide HRA the ability to fixrtrther fund redevelopment efforts. The levy will be certified and delivered to Anoka County on September 16, 2008 and Council will act on this item on September 15, 2008. Commissioner Meyer asked for clarification that on a principal balance of $277,000 the HRA can collect nearly $500,000. Mr. Bolin said that is correct, more money could be collected than what is due. Commissioner Meyer asked if the HRA paid the loan if there would be a surplus. Mr. Bolin said that the HRA has been paying a fixed amount all along. Commissioner Meyer asked if the HRA could accelerate payments. Mr. Bolin said that the HRA has had this discussion before. Commissioner Gabel said that the HRA decided to continue the payments, she didn't remember the specifics. William Burns, City Manager, said that the information could be taken under consideration and at the next meeting staff could present recommendations. Commissioner Billings asked what information staff would come back with at the next meeting. Commissioner Commers said that tonight the levy just needs to be passed. Whether the HRA pays the balance to the City or follows the payment schedule is not really a relevant decision to be made tonight. Mr. Bolin said he can check with Mr. Pribyl and discuss in more detail at the October meeting. MOTION by Commissioner Gabel to approve the 2008 tax levy for taxes payable in 2009. Seconded by Commissioner Holm. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. INFORMATIONAL ITEMS: 1. Northstar Rail Station Update Paul Bolin, HRA Assistant Executive Director, said that a letter was received from FTA stating that they have no problem with bringing the Fridley Sta.tion on-line with other stations. The funding for the Rail Station will comprise of'/a % sales tax increase that became effective July 1, grant applications will be applied for in September and funding will be awarded in late October. Mr. Bolin said the best estimates indicate that $ l O.OM will be available for the Fridley Station. An updated cost estimate shows the total cost of the station to be over $14.OM. HRA land investment ($3.2M) will need to be the local contribution to project (Special Legislation provides $2.6M of this total). Mr. Bolin reviewed the construction schedule. NCDA is working on the final design and should be complete by October 3 l S�. A meeting with B.O. and the Fire Marshall will be held on September 17. A bidding process will take place from November 1 through December 31. A Notice to Proceed will come forward on January 15�', 2009 and the significant construction will be complete in September 2009. The final construction is estimated to be completed in October 2009 allowing North Star Rail to begin operations in November 2009. Mr. Bolin said that a resolution of support for CTIB funding is needed along with a resolution approving use of HRA property as "local match" for the CTIB Grant application. The goal is to use as little city funds as possible. The funds for the project can be front ended for North Star with the expectation to get paid back. Other communities are also seeking additional funding and the only real investment opportunity is through the HRA. We are not sure to what extent the Met Council will use the land but this project is really starting to move along. Mr. Bolin prepared two resolutions to vote on tonight. A resolution of Support for CTIB Funding and a resolution approving use of HRA Property as "local match" for CTIB Grant application. Because of the timing of when the applications aze due, these resolutions would need to be adopted tonight. William Burns, City Manager, said that with the other cities opening stations at the same time many are seeking the CTIB funding. If we delay it will be more difficult to get the funding later so it is important to expedite this process. Scott Hickok, Community Development Director, said that we have had great partners in this process, this is very important and something we should act on. Commissioner Gabel asked that with only $20.OM available if there was an indication that Fridley would get the funds that is needed. Mr. Bolin said that we should receive the $10.6M we are seeking. Commissioner Gabel asked if the $14.3M includes the land costs and if that is our contribution. Mr. Bolin said the $3.8M is for the land plus added legal costs. MOTION by Commissioner Billings to adopt the resolution regarding the potential counties transit improvement board grant funding of the Fridley North Star Commuter Rail Station. Seconded by Commissioner Gabel. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. C6airperson Commers said that it looks like no one had contributed more than 10% and Fridley's contribution is almost 20% and the number could go up even higher. Dr. Burns said that it reads a minimum of 10%. Commissioner Billings asked if they are asking for partial reimbursement. Chairperson Commers said that it should be put in the resolution that 10% is the maximum contribution. There needs to be some kind of contingency to get the funds back. HRA needs to recover some excess funds used for redevelopment. Mr. Bolin said that the City of Anoka's contribution to their station is the land and the pazking deck. Dr. Burns suggested in the event the actual construction cost and county funds do not equal the $10.6M, we would like to participate in the process if we could recoup some of the investment. Mr. Bolin said that it would be best to say that Fridley's land is the match and we could put boundaries on the land that is used. Chairperson Commers said that the lease rate is very irnportant. He asked if they were trying to reimburse Fridley and for more clarification on the resolution. Mr. Bolin said it would likely be $1 a year for 99 years. Commissioner Meyer asked about the cost of the construction services of $755,000. Dr. Burns said that we have not had a meeting to discuss the costs. Commissioner Mey.er asked for clarification on how the bids are awarded and what vehicle is used for the construction bids. Mr. Hickok said that the reason the amount is $14.4M rather than 10.6M goes back to the $21.OM from our information on the application. We can ask for the $10.6M and that is what we could get from the $20.OM that is available. MOTION by Commissioner Billings to adopt a resolution authorizing the Anoka County Regional Rail Authority to use the HRA owned property located at 6] St and Main as is necessary for the Fridley Commuter Rail5tation as the required local match for CTIB funding. Seconded by Commissioner Gabel. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. NONAGENDA UPDATE: Concerned Citizens Presentation Request Paul Bolin, HRA Executive Assistant Director, said that the Concerned Citizens had requested him to do a presentation regarding TIF districts. Commissioner Gabel suggested integrating that information into an HRA meeting so everyone could be informed. The Concerned Citizens Group could come here and attend the meeting to learn about TIF districts. Mr. Bolin said that if the HRA boazd strongly did not want him to meet with a certain group he would follow their wishes. He has a PowerPoint presentation prepared to explain how tax increment dollaxs work. There is a lot of misconception out there on this topic. Commissioner Gabel said all the more reason to show the entire community rather than just a select group of people. Commissioner Meyer said that with Pam Reynolds being a Mayoral Candidate and an active member of the Concerned Citizens, this could be some kind of publicity for candidacy. He said you need to be careful not to favor one over another. Commissioner Gabel said if the Concerned Citizens wanted a special presentation it would best be presented after the election. Chairperson Commers recalled a presentation that was made in front of the League of Women's Voters. He suggested maybe sending out a pamphlet. Commissioner Billings suggested an article in the City Newsletter with HRA having a corner explaining TIF. He also thought a brochure was a great idea. Another idea would be to have a Community Development hour portion on the cable program and explain TIF. He agreed with Pat and try to get as many people as possible to understand TIF. . . Every opportunity we have we should go out and educate the public in the most cost effective way possible. A separate meeting for Concerned Citizens could get very vocal, but teaching the positive aspects of TIF vs. the negative of TIF would be very beneficial. Commissioner Holm said maybe they should try it on a smaller audience, see how it goes and then expand to a wider audience. Chairperson Commers said that communication and getting people informed is a good idea. Mr. Bolin said that in the past few years he has met with different groups a lot of times and many times TIF has been a topic. He said that the Community Development Journal and the Newsletter are both great ideas. Commissioner Gabel said if a presenta.tion was just done a yeax ago if another presentation was necessary. Mr. Bolin said that the meeting wasn't totally focused on TIF. They talked about other issues as well and they had specific topics they want to learn about. Ms. Reynolds also wanted to talk more about transit oriented development. Chairperson Commers asked if HRA agreed to send Mr. Bolin to the Concerned Citizens Group for the presentation. Commissioner Gabel suggested staff show the first presentation to the public at large as that would answer a lot of questions. Dr. Burns was concerned that the information session could change to a debate session. Commissioner Billings said the Concerned Citizens want to ask questions to get full knowledge of what TIF is. He was okay to have the presentation here and set aside some time at a future meeting for a presentation. Commissioner Gabel agreed to have staff go one more time to a Concerned Citizens Meeting. Gateway NE — Acquisition Updates Paul Bolin, HRA Assistant Executive Director, said last month HRA authorized a new appraisal for the Tai Kwan Do property. The appraisal was completed last week and attached to your packets. Staff recommends the HRA make offer based on new appraised amount. The appraisal went up $45,000 since 12/06. Property values are down but not for commercial properties. He suggested making an offer on the new appraised amount and work relocation benefits into that offer. � r MOTION by Commissioner Holm to approve staff to make an offer based on the new appraised amount. Seconded by Commissioner Meyers. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. Paul Bolin, HRA Assistant Executive Director, said there are internal disagreements over the Alano Societies representation which have slowed negotiations. The Sinclair Stations consultant, Javelin Group, finished environmental assessment and submitted results to MPCA. Javelin Group determined contamination was residual from a previous leak on this site. We will await MPCA decision. Gateway West Paul Bolin, HRA Assista.nt Executive Director, said that Blueprint continues to mazket properties and siding will be on the home at 5701 3`d Street completed within 2 weeks. The final lift of Asphalt is to be installed on 57�' Place and 3`d Street up to 60�' Avenue beginning within the next few weeks. Monthly Housing Report Paul Bolin, HRA Assistant Executive Director, met with CEE earlier today. Earlier this week they sent a flier promoting our home loan program and RA services. In August the loans that were closed were two from the Revolving Loan Fund. There was one Remodeling Advisor Visits in August. ADJOURNMENT: MOTION by Commissioner Gabel to adjourn. Seconded by Commissioner Meyer. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 9:10 P.M. Respectfully Submitted, � Krista Monsrud Recording Secretary - , . � CITY OF FRIDLEY SIGN-IN SHEET HOUSING & REDEVELOPMENT AUTHORITY MEETING �� b� �°A �.�� ___________________________________________________________________________ ___________________________________________________________________________ Name and Address Agenda Item of Interest