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HRA 12/04/2008 - 30953" " • - CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION DECEMBER 4, 2008 CALL TO ORDER: Chairperson Pro Tem Gabel called the Housing and Redevelopment Authority to order at 7:00 p.m. ROLL CALL: MEMBERS PRESENT: Pat Gabel William Holm Steve Billings John Meyer MEMBERS ABSENT: Larry Commers OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Jim Casserly, Development Consultant Gay Cerney, HRA Attorney Scott Hickok, Community Development Director Mike Jeziorski, Accountant William Burns, City Manager ACTION ITEMS: 1. Approval of Ezpenditures 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 November 6, 2008 Meeting Minutes MOTION by Commissioner Holm 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. 3. Approval of Preliminary 2009 Budget Mike Jeziorski, Accountant, said the purpose of tonight's presentation is to provide highlights of 2008 financial activity, provide an overview of the proposed 2009 budget and answer questions. The Proposed 2009 HRA Budget Packet materials include: Cash Balances as of 10/31/08, General Fund, Housing Fund and TIF Districts 2008 Activity through 10/31/08, Fina12008 Budget, Proposed 2009 Budget, Debt Service Schedule, and Proposed 2009 HRA Budget. The HRA Budget is divided into three categories: General Fund: Administrative and Operating Expenses, Special Revenue Fund: Housing Loan Program and Capital Outlay Funds: Tax Increment Districts, Redevelopment Projects and Housing Replacement Program. Mr. Jeziorski reviewed the following 2008 Activity Highlights: Recap of the Northstar Land Acquisition: Winfield - $578,000, Onan - $1,690,000, University - $300,000, McGlynn's - $200,000, Satellite -$400,000 for a Total of $3,168,000. He noted that Moore Lake effectively exhausted its cash balance and will become inactive/decertified at the end of 2008. Mr. Jeziorski reviewed the proposed 2009 HRA Budget. Total revenues are projected at $3.4M for 2009, which is a$1.3M decrease from 2008. This is primarily driven by North Area (TIF #3) becoming inactive at the end of 2008. Projected total expenses are $3.8 M for 2009, which is a $71,000 increase from 2008. 'The total projected capital outlay expenditures for 2009 are $1.SM. The funds include: General Fund $700,000, Lake Pointe (TIF #6) $648,000, 57th (TIF #16) $24,300, and TIF #19 (TIF #19) $134,100. The total debt service payments in 2009 are $2M arsd are paid from the following funds: Housing Fund (pay off P&I), $285,500, Center City (TIF #1) $13;000, and North Area (TIF #3) $1,750,000. . Chairperson Pro Tem Gabel asked about the administrative charges/allocation and what was included in those charges. Mr. Jeziorski said those charges are the city administrative staff time that is involved with the HRA. Chairperson Pro Tem Gabel asked about the increment section and if some of the tax levy was delinquent from prior years. Mr. Jeziorski said that those are portions are received in the current year and some are delinquent from prior years. Commissioner Holm asked about the capital outlay total budget of $1.SM and if that was correct. Mr. Jeziorski said that $700,000 is for the Gateway Northeast project and the rest is for the "pay as you go" plans. Commissioner Holm asked if that will be adequate funds with the acquisitions that may take place for 2009. Paul Bolin, HRA Assistant Executive Director, said that the City will close on one of the properties prior to the end of the year and maybe two properties. The number allocated may be a little low but staff will take a look at the numbers again before the final budget is presented in January. MOTION by Commissioner Billings to approve the Preliminary 2009 Budget as presented. Seconded by Commissioner Holm. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED. 4. Approval of Resolution Adopting Reimbursement Agreement — HRA/ACRRA Gay Cerney, HRA Attorney, said that the CTIB Grant Agreement (CTIB & ACRRA) CTIB approved $9.921 M for Fridley Station Construction. $1.SM will be spent on HRA land (parking, etc.). Per the agreement the property must not have ongoing litigation, unless a reimbursement agreement is in place (RA drafted by HRA, ACRRA& CTIB). There is little risk to HRA, the agreement addresses the worst case scenario (landowner gets land back from courts and improvements are removed). MnDOT would immediately condemn property under worst case scenario, preserving improvements with this agreement and assurance. Ms. Cerney said that Staff recommends approval of the Resolution approving the Reimbursement Agreement between the HRA and ACRRA. ACRRA is set to approve the agreement at their meeting on December 5. The agreement needs to obtain the $9.921M in CTIB funding and begin the construction of station. Approval tonight keeps the station on track to open with the rest of the line in November of 2009. Paul Bolin, HRA Assistant Executive Director, reviewed the time line of the Fridley Sta.tion. The bidding process will take place December 12th through January, Notice to Proceed — February 2009, Significant Construction Complete — September 2009, Final Construction Complete — October 2009. The Northstax begins operations in November 2009. Commissioner Meyer asked about the $1.SM for the parking lot and if it was estimated by City Engineers and if it included the elevators and stairs. Mr. Bolin said that $1.1 M is built in for contingency and if the cost goes over the estimates and contingency, the Anoka County Regional Rail Authority is obligated to cover that difference. There is no financial risk to the HRA. The ACRRA is very confident with the estimates. Commissioner Meyer asked if the west elevators and parking lot were included in the basic cost of the station. Mr. Bolin said that those costs are included in the $9.92M and so is the construction on tne east side. The only thing affected by this reimbursement is the improvements that will be made on the HRA properiy. If we cannot work out some kind of agreement, then the ACRRA would have to reimburse the CTIB and in turn Fridley would have to reimburse ACRRA for that expense. The City of Fridley would also get back the initial $3.OM. Jim Casserly, Development Consultant, said that this agreement would not be in place without the Joint Powers Agreement. MOTION by Commissioner Billings to approve the Resolution Adopting Reimbursement Agreement HRA/ACRRA. Seconded by Commissioner Meyer. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 5. Approval of Resolution Adopting Joint Powers Agreement — HRA/MnDOT Gay Cerney, HRA Attorney, said that staff recommends approval of the resolution approving the Joint Powers Agreement (JPA) between the HRA and MnDot. MnDot and the Attorney General's Office have reviewed and approved the JPA. The agreement simply strengthens the HRA's authority to acquire the rail station property, previously granted by MnDOT through a MOU. This reduces the risk that HRA would need to reimburse ACRRA CTIB for improvements on HRA property. � Commissioner Billings asked for qualification that the JPA and execution of it doesn't void the MOU but couples with the MOU and makes reference to the MOU and forms the same relationship in a different format. The relationships stay the same but the documentation that supports it are now in place. Jim Casserly, Development Consultant, answered that is correct. MOTION by Commissioner Billings to approve the Resolution Adopting the Joint Powers Agreement — HRA/MnDOT. Seconded by Commissioner Meyer. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED. INFORMATIONAL ITEMS: 1. Gateway Northeast Update Paul Bolin, HRA Assistant Executive Director, said that the Alano purchase is scheduled to close on December 18, 2008. Dan Wilson is working on getting a response to our offer on the Tae Kwan Do building. The Sinclair building is expecting MPCA to rule on this case very shortly. MPCA has indicated that the contamination found is not from a new leak but may be residua.l from a previous leak. Dan Wilson is meeting with the Sikh Society representative on December 9`�. 2. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said that in November one RLF loans were closed and year to date 15 RLF are closed along with three other loans. Year to date total loans closed is 18. The remodel advisor visits were one in November making a total of 16 year to date. Mr. Bolin said that the Neighborhood Stabilization Program is a program that is purchasing foreclosed homes that are currently vacant. Anoka County has a$2.3M allotment given to spend in targeted zip codes based on census tracks. HUD has identified areas of greatest concern. In the City of Fridley they have targeted the 55421 zip code. A meeting is scheduled for December 19 to put a list together of vacant homes to present. Fridley probably has170 homes in this category and will see which homes are in the 55421 zip code. William Burns, City Manager, said that the Anoka County HRA is including the City of Fridley even though Fridley is not a member. The census tracks the homes identified by HUD. This is a three part program. HUD has to approve this and if approved it will be implemented in February or March. 10,000 grants will be allotted to people who will own or occupy the homes if they don't earn more than 120% of the median income. The homes causing the most trouble will be purchased and if the homes can't be fixed to sell again, they will be destroyed. 13 of 21 cities are eligible for these funds. Only a small part of Fridley is included. More information can be found at www.northmetro.com. Mr. Bolin noted that the next meeting is scheduled for January 8, 2009. Please Note: The Meeting is the 2"d Thursday of the Month, due to the ls` being a Holiday. ADJOURNMENT: �, ,. -,_ MOTION by Commissioner Holm to adjourn. Seconded by Commissioner Meyer. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 7:50 P.M. Respectfully Submitted, ,��G�� `�YI Krista Monsrud Recording Secretary CITY OF FRIDLEY SIGN-IN SHEET HOUSING 8� REDEVELOPMENT AUTHORITY MEETING �Z-�-og --------------------------------------------------------------------------- --------------------------------------------------------------------------- Name and Address Agenda Item of Interest