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HRA 08/06/2009 - 622011 August 6, 2009 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 June 4, 2009, Meeting Minutes 3. Approval of June 23, 2009, Meeting Minutes 4. Annual Election of Officers 5. Approval of MN Solutions 2010 Membership 6. Delay of Gateway West Residential New Construction Program Informational Items 1. Northstar Construction & Ground Lease Update 2. Housing Loan Program Update Adjournment H:Wty Documents\HRA\2009 HRA Agendas\August 6 -2009 Agenda Outline (3).docH:UNy DocumentsUiRA\2009 HRA AgendasWugust 6 -2009 Agenda Outline (3).doc I- CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION JUNE 4.2009 CALL TO ORDER: Chairperson Commers called the Housing and Redevelopment Authority to order at 7:10 p.m. ROLL CALL: MEMBERS PRESENT: William Holm Pat Gabel Larry Commers John Meyer MEMBERS ABSENT: Steve Billings OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Scott Hickok, Community Development Director Gay Cerney, HRA Attorney Jim Casserly, Development Consultant ACTION ITEMS: 1. Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures as presented. Seconded by Commissioner Gabel. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. 2. Approval of May 7, 2009 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. Authorization to initiate process for creation of TIF District #20 ( Northstar Transit) Paul Bolin, HRA Assistant Executive Director, said that the 2007 and 2008 Legislative Sessions gave the City the ability to create a special TIF district to fund public improvements around the Northstar Station area. Improvements include: sidewalk and trail connections, future parking decks, utility and street upgrades, acquisitions, relocations, demolitions, site preparation, etc. Mr. Bolin said that the future JLT site development will be a large contributor of increment for funding these improvements. While JLT has no immediate plans for development, the district must be created prior to issuance of any building permits. Staff and legal counsel have developed a timeline for creation of the district and a draft TIF plan laying out potential development scenarios. Staff is asking that the HRA, following our discussion with Attorney Casserly, approve a motion authorizing staff to move forward with the statutory requirements for creating the Northstar Transit TIF District. The Ci,� Council is being asked to set the Public Hearing for the districts creation at their August 10 meeting. Chairperson Commers said that it looked to him that it is well laid out in terms of the district and phases. He noted that of the $48.OM expected to be generated in this plan, $27.0- $28.OM is from the JLT or first phase. Jim Casserly, Development Consultant, said that is correct. That part requires the least amount of public investment and has the option of being most densely developed if that would happen. There is a potential of a substantial amount of revenue to be accrued from that site. There isn't really a right or wrong answer to develop this district but the question is if it is reasonable to do it at this time. Some of these areas will not have development on site for quite some time. This analysis was put together to show the potential of a fully developed area. The analysis that would be prepared for the tax increment plan would reflect more revenues than shown on this plan. Chairperson Commers asked if there is no development on the JLT site if the development would be able to go onto phase two because some money needs to be generated before moving forward. Mr. Casserly said that other sites could develop in different orders but staff is trying to keep this as realistic as possible. Something is needed that has some significance, not necessarily tax increments, but that seems to be the source available to rely on for these type of activities. Chairperson Commers asked if excess funds were available in other districts could be transferred to this district. Mr. Casserly answered yes, but no revenues from this site could be transferred out to others. Commissioner holm asked if the size of the district was defined by statute or if the district could include areas not currently listed in the recommendation. Mr. Casserly said that the statute specifies the properties that can be included. They are identified by pin number. Commissioner Meyer said that he would like to explore the timing of whether or not to create a TIF district. He asked if the developer came in and took out a building permit if that would mean that area could not be included in the TIF district. Mr. Casserly said that is correct, that parcel would not be included. The city would not get the advantage of the increased value of that individual parcel. Commissioner Meyer asked if there was a law that says when the building permit is issued that the parcel is excluded. Mr. Casserly said that if the permit is pulled prior to the public hearing then it is excluded. The process takes about 75 days and there are a series of statutory guidelines to be followed. Commissioner Gabel said that something is needed that is going to generate a high dollar in order to establish funds for some of the other things so if the district isn't created and someone pulls a permit, part of the potential revenue will be lost. Mr. Casserly said that based on what is known at this time that is the area that appears to be available for the greatest amount of development because it is clean and ready to go. Commissioner Holm asked if the establishment of a TIF district promoted activity of development. Mr. Casserly said that the city intends to maximize its development and has received special legislation for this development. The city wants to maximize the development. Commissioner Holm was wondering why HRA shouldn't move ahead tonight and approve the TIF district. Chairperson Commers had an objection with the proposal submitted because it says JLT could get $84.OM from the TIF district. The motion could be modified but the first step doesn't gain anything to set up because there is no revenue to capture at this time. If someone comes in to develop the area there would more than likely be adequate time to create a TIF district. If a Walmart goes in that area it will be a big disappointment. Commissioner Holm said that his concern is that the dollars don't make sense at this time because there is nothing to support it. Another concern is having a public hearing when the plan is currently unknown. This is an ideal opportunity for the city and somehow a developer needs to be found to carry it out to some extent. He asked if there was a way not to approve the Walmart deal. Scott Hickok, Community Development Director, said that if the footprint of the building was modified it would need to come back to the Council. Beyond that if Walmart came in with a plan, a permit would be issued. Commissioner Gabel asked how these plans were made without a plan. Mr. Hickok said that this was a very unique and less than perfect rezoning process. It started with an idea and a concept before the Council sometime ago. JLT came to Council with the belief the building would need to be demolished because the market was very slim for the type of building they had. Even if the site would be used as an industrial site the building would still need to go. JLT thought the site would best be used as a commercial site which would require rezoning. JLT said they had a concept plan with about 200,000 sq. ft. of retail and 90,000 sq. ft. of office space and presented that plan as part of their tax base revitalization applications as well as the zoning application. Mr. Hickok said that there was a request of over $300,000 for asbestos clean up and Met Council passed on that request saying the development wasn't dense enough and not enough funding was available for all applications that were received. JLT came back with other plans and thought they could do the 200,000 sq. ft. of retail and 90,000 sq. ft. of office space. The Met Council then approved a $168,000 asbestos clean up package. Mr. Hickok said that Council approved a first and second reading and gave JLT time to return with an official plan within 24 months. After the 24 months elapsed, the economic downslide, and JLT asked for another 12 month extension. In those months, a retailer came to JLT with a proposal. Mr. Hickok said that ultimately staff saw this site as commercial. Staff still thinks the rezoning was correct but it will be touch and go to make sure the City ultimately gets the development they seek. For sure staff does not want a big box to stand alone on that site. Commissioner Gabel asked if this was made into a TIF district, how much control would HRA have as to what will go on that site. Chairperson Commers said that HRA has no control. Commissioner Gabel asked if JLT says that they will develop the store how much control HRA would have. Mr. Hickok said that then Council will have to decide if it impacts the zoning. Commissioner Gabel asked what the optimum square footage staff is looking for. Chairperson Commers said that they are looking for $27.OM to generate from this project. Commissioner Holm asked what happens if the project on the JLT site only generated half of those TIF dollars. He asked what would happen to the project and if phase four would still happen. Mr. Casserly said that he was not sure what all the grants are what can be achieved. If less revenue is received from a site other sources of money will need to be sought out. Clearly great needs for revenue are needed on this site. Commissioner Holm asked if the TIF district should be approved on a specific dollar amount or if the area should be developed based on a concept of an area to redevelop. His preference would be to defer action for a month and review the numbers; discuss this as a concept rather than hard dollars on what parcels would generate. Chairperson Commers said that the question is if HRA should go out at this point or defer to a later date. Commissioner Holm said that HRA is faced with some risks and should proceed so no parcels are lost. Chairperson Commers said that the risk is that any revenue the JLT site would generate would be lost. Mr. Casserly said that there is an unusual problem with this and normally we would have a better idea of what the potential is. In this situation the legislature didn't allow us to set up multiple districts within this area. The goal was to create one or more districts in this area but that idea was not adopted by the legislature. Parcels can be dropped out of the district and if they qualify for another part of a district, they can be taken out and placed into other districts. This district allows us to include all parcels as a redevelopment district. This will always be a planning tool as we will never have enough of the analysis to go through all of the phases over the next 8 -10 years. MOTION by Commissioner Meyer to table the authorization to initiate process for creation of TIF District #20 (Northstar Transit). Seconded by Commissioner Gabel. UPON VOICE VOTE, COMMISSIONER GABEL, COMMISSIONER MEYER AND CHAIRPERSON COMMERS VOTING AYE, COMMISSIONER HOLM VOTING NAY, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED ON A THREE TO ONE VOTE 4. Authorization for independent appraisals for proposed Gateway West Residential New Construction Program Paul Bolin, HRA Assistant Executive Director, said that last month the HRA terminated exclusive development agreement with Blue Print Homes. Staff explored options for constructing homes on the remaining nine lots. The following options were explored: • RFP — exclusive builder • Sell lots through a realtor/MLS • GWHDP — modeled after infill program Mr. Bolin said that a Residential New Construction Program would allow homebuyers and builders to reserve a lot for up to 60 days. Plans are developed, reviewed and approved by HRA to ensure compatibility with the existing homes. Financing would then be lined up - both construction and permanent. The Builder and HRA would sign a development contract outlining all terms. ERA would sell the lot to the builder and construction would start. Staff is requesting authorization to hire an independent appraiser to review the lots and help set initial lot prices. Financing for the lots will be dependent upon a fair market appraisal. Staff is interested in receiving HRA's comments and will integrate them into a final draft for consideration at the next meeting. MOTION by Commissioner Gabel to authorize an appraiser to give value on the lots. Seconded by Commissioner Holm. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. Commissioner Meyer noted that there is no minimum square footage on the memo and asked if there should be a guide for square footage. Mr. Bolin said that there is a minimum square footage in the city zoning code and the number can be reflected in the document. Scott Hickok, Community Development Director, said that a one level home needs to be 1,020 square feet and a split level is 900 per living level so city code is a fair reflection in comparison to what homes were being built. This is what has been reflected in the homes that have been built and with the lots only being 60 square feet wide it is adequate. INFORMATIONAL ITEMS: 1. Legislative Update — Housing Replacement Program Paul Bolin, HRA Assistant Executive Director, said that this item was approved by both houses but was dropped at the last minute. This will most likely be approved early next session. 2. Update on Potential TIF District for Columbia Arena Redevelopment Paul Bolin, HRA Assistant Executive Director, said that Attorney Casserly met with the developer early last month and has had ongoing dialogue. The developer is gathering additional information needed for a TIF analysis. This process is slow due to the number of players involved in the potential development. Jim Casserly, Development Consultant, said that the developer is paying $4.OM for this site and the costs are far in excess of that amount. This is a $25.0- $30.OM project and today the developers asked for an informal work session. This is a very complicated project. Chairperson Commers said that this seems to be more than what guidelines allow. He would be interested in a working session but would like something in writing first so HRA would have information to engage in the meeting. It was decided to meet at 7:30 p.m. Tuesday, June 23rd for a work session. 3. Update on Fairview /Columbia Park Sign Lease Agreement Scott Hickok, Community Development Director, said that staff has met with the sign contractor and the person on the administrative staff about the sign location. There will be three trees that will need to be relocated and three trees will be replanted to make an attractive location. The message board will be controlled by the City of Fridley. 120 square feet is not an enormous sign but with the electronic technology it is the right proportion for the messages needed to go on the sign. The City of Fridley will be listed on the top in permanent signage and the changeable message below will have messages put on by the city. The Fairview signage will be on the bottom of the sign with a colored background. The entire upper portion of the sign will be for Fridley and the lower Fairview portion is only for Fairview. Commissioner Gabel asked for clarification that Fairview is putting up the sign and paying for it and Fridley will control it. Mr. Hickok answered yes, consider this a gift. Chairperson Commers asked what Council thought of this idea. Mr. Hickok said that this will be discussed at Monday's meeting. Council has been interested in changing out this sign for many years but it has not been in the budget. Commissioner Gabel asked who take will take care of upkeep of the sign. Mr. Hickok said that hasn't been decided yet. 4. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said that in May one loan was closed making a total of four year to date. In May three Remodeling Advisor Visits were done making a total of five year to date. NONAGENDA UPDATE: Paul Bolin, HRA Assistant Executive Director, said that the Alano Society may need another month extension to their lease. Staff is asking HRA to authorize Paul to work with Gay Cerney to extend the lease with the same terms until October 1St, 2009. MOTION by Commissioner Gabel to authorize staff and Council be authorize extension of existing lease on property. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. ADJOURNMENT: MOTION by Commissioner Gabel to adjourn. Seconded by Commissioner Holm. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 9:00 P.M. Respectfully Submitted, KA'iakmw'� Krista Monsrud, Recording Secretary June 23, 2009 HRA Meeting Special Meeting Agenda 7:00 p.m. City Hall, Council Chambers CALL TO ORDER Chairperson Commers called the HRA Special Meeting to order at 7:04 p.m. ROLL CALL: MEMBERS PERSENT: Pat Gabel John Meyer Larry Commers Steve Billings NONMEMBERS PRESENT: Bob Foster, Attorney for Amcon Construction Paul Bolin, HRA Executive Assistant Director Scott Hickok, Community Development Director Jim Casserly, Development Consultant 1. Review of Potential TIF District #20 (Columbia Arena Redevelopment) Bob Foster, Attorney for Amcon Construction, presented and explained a mock up of the project. The idea is to create two lots. The southerly lot will house a two story medical building (50,000 sq. ft.) and the medical building will be anchored by a partner known as Premier FMC, LLC — Multicare and Associates. Similar medical buildings are currently in Fridley, Roseville and Blaine. Multicare and Associates is a partner in this project and will be the major tenant. The remainder of the medical building will be leased for other medical uses. Mr. Foster said that there will be 300 parking stalls and an agreement has been reached with the city to create pathways on the south side of the project to hook up to the adjacent park. Parking will also be allowed on the medical center parking lof for use of park participants to the south. In the middle of the parcel there will be landscaping to the entrance into both projects. Mr. Foster said that the northern part of the project will be sold to an entity known as Dun2 who is working to develop a project with Walker Methodist, a senior living non- profit in the metro area. A four -story senior living project will be built on the north -west portion of the lot and a one -story nursing home on the easterly portion of the lot. It is anticipated that the lot will be cleared this fall with a closing and request of TIF assistance on or about September 30''. The medical building will most likely start construction this fall with the senior living area starting construction in the spring. The senior living construction developers will have a pad ready site mid to late November. A closing will be held the end of November. Mr. Foster said that the four -story senior living complex will be approximately 153 units and the nursing home will have 35 nursing beds. In discussions with the senior living developers it is intended to phase construction into three parts. All three components would happen in the time frames discussed with Mr. Casserly. Mr. Foster said there has been an analysis completed and the developer is confident that there is a demand for both the senior living complex and the nursing home in Fridley. There was a meeting today of the developers and they are committed to closing within the time frames discussed. Mr. Foster said that there is a new entity that has been formed, Premier FMC (Fridley Medical Center). Premier FMC will purchase the entire parcel from Mr. Fogerty and own the southern lot and the tenant will be Multicare Associates Medical Center. The northerly lot will be bought by Dung and that half of the lot will be sold as part of the development to Walker Methodist. Commissioner Billings asked if Dung would only be involved for a short period of time. Mr. Foster said that is correct. Except for a small pharmacy or retail eye clinic, it is anticipated it will be all medical uses in that building. It is possible a division may be requested of the northern lot because of different uses on the lot. Commissioner Meyer asked why the transaction was transferring from Dung to Walker Elder Care. Mr. Foster said that Mr. Dunbar has the development role in this project. There is interest in having a buyer for the northerly half and have a purchas e agreement. Jim Casserly, Development Consultant, said that a lot of entities are involved. There are different financing criteria for nursing homes versus housing so that will be split off with another entity. There is nothing unusual about the mechanics of this development. Premier is actually owned by two different groups that each have a 50% interest. Financing is available for construction and other things but many times not for land acquisition. The investors that have the money are able to do the project right now. Mr. Foster said that the good news is both sides have financing sources and strong entities in the north and the south. Multicare Associates has a proven track record in the city, bringing stability to the medical building. They have built two previous buildings which has caused other medical uses to follow them. We are confident when they get into this facility, there will be strong interest and we will be able to lease out this space because Multicare is there. There are some non profits that are not able to be financed in this day and age, but we are confident that this will not be a problem. The people working with them have had very encouraging signs that the project is well on its way to be financed. Commissioner Meyer asked for more specifics of the construction and site. He asked who will be doing the building and what their track record was like. Mr. Foster said that one of the owners of Amcon is Jim Winkles. Amcon has been around for 30 years and is the same company that built the Blaine Medical Center. This building will be very similar to that Medical Center. Amcon Construction does a lot of industrial, retail and commercial buildings. There is a lot of confidence that Amcon is the right builder for this project. Scott Hickok, Community Development Director, said the clinic will be constructed of a steel frame and the housing will be a wood frame over underground parking. Commissioner Meyer asked why the pads will be prepared first and the construction comes later. Mr. Foster said that they have to deliver them a pad ready site. The old building will be torn down, environmental issues addressed, etc. and prepare a site that is ready for them to build on. Commissioner Gabel asked if the senior building would be senior living or assisted living. Mr. Foster said that both will be at the site. Commissioner Gabel asked how many parking stalls were underground. Mr. Hickok said that parking would meet code requirements. The standards for assisted living and independent living has changed and the parking must accommodate staff and visitors. The parking out on the lot originally exceeded expectations and some parking was taken away to provide more green space. This provides a much nicer entrance into the building. The residents typically don't have cars so the parking below becomes staff and visitor parking. Commissioner Gabel asked what the breakdown was of the senior living facility. Mr. Hickok said that there will be 35 skilled nursing beds, 10 care suite beds (assisted living), 24 memory care units assisted living, 47 general assisted living, 57 catered living units (less assisted, more independent but can have meals catered), and 2 guest suites for family who would like to come and stay for an extended visit. Commissioner Gabel asked what a care suite was. Mr. Hickok said that developments like this has suites that are not set up like an apartment but are more like a hospital room; a bed and simple accommodations. Other units would have a kitchen and more living space. Commissioner Gabel asked about the park dedication land being waived. Mr. Hickok said that the pathway is interesting because it is neatly situated with the park to the south. The easement for parking is a nice alternative in lieu of the park dedication. A subdivision allows up to 10% of the land to be used for the parks and because the park is so close to this area, it allows the opportunity to park on site here which is a park benefit. The parking benefit, along with the pathway connections, is offered in lieu of the park dedication land which is not necessary in this situation. Mr. Foster said that there have been discussions with the neighborhood and if there was a concern about the park it was that people were parking on 69t` which is not legal parking. This will take care of some of the events that happen and people will start to park on site versus on the street. Hopefully this will relieve congestion on the street. Commissioner Gabel asked about the zoning. Mr. Hickok said what was required was an M2 to an R3 and the plat to create the northern and southern lot was approved. The nursing home for funding/tax reasons will likely need to stand on its own lot. A further subdivision may be needed and Council is aware of this request. The R3 multi family residential was chosen for this project which makes this a much cleaner development. With the R3 some things will need to have a SUP but Council was supportive of this and it was all approved. Commissioner Gabel said that the nursing home will be tax exempt; she asked how that would apply to the TIF. Mr. Casserly said that would be excluded from any analysis. Chairperson Commers asked who was liable for the pay as you go. Mr. Casserly said HRA and the recipients /payees, Premier and Dung. Walker wouldn't be a payee on any of this nor have any other interaction with the city or the HRA. Mr. Foster said the site is great for the medical office but there needed to be a developer for the other half. That is why we are using the Dunbar/Walker combination. The building doesn't work if there is no complimentary use on the other site. This is a great relationship between the two uses. The medical tenants are excited to be next to this facility and vice versa. Mr. Casserly said that we will take one piece at a time but as you work with this more redevelopment opportunities may arise. Mr. Foster said they are excited to improve and replace the other building. Mr. Casserly said this has been a site that we have discussed redeveloping for years. A value of $10M was put on the site. Paul Bolin, HRA Executive Assistant Director, said that by creating this tax increment district, the property value will stop from decreasing and lock in at the 2010 value of $2,720,200. Mr. Casserly said there has been a lot of discussion as to when districts can be created: If an area is declining in value, the declining value can be stopped by creating a TIF district. Reclassification will reduce the overall tax rate. What is interesting to note is that the local taxes are still paid. If everything goes on as described in the analysis, it would be nine years of increment to generate $1.6M. Mr. Casserly said that the demolition seems to be high but this site will require some special care. The site worked well for an arena for many years but as you try to redevelop it, there are limitations. Commissioner Billings said that if bonds were done for $1.6M it would be paid off in 10 years and for the next 25 years HRA would be pulling in about $2.OM a year that is not obligated to anything. Mr. Casserly said that it's not quite that much but to be fairly realistic the assistance will cost about 25% of the available increment. Anything beyond that is limited unless you go into some housing programs. There are other opportunities to expand this district or modify the district to include other areas as a redevelopment district. HRA is in control of these funds. Mr. Casserly said that a chronology has been developed and in September the district would be on the agenda to be approved, then the Council would approve the actual district at the September 28`x' meeting. After the district is approved the developer can start to pull permits and get started. If the Authority wanted to adopt the chronology it would then be brought to the Council and the process would be started. Chairperson Commers asked if the chronology needed to be approved to proceed as the memo states. Mr. Casserly said the term sheet has been worked on and this is what we would recommend, how we think the project should look and this fits within the parameters of what has been done in the past. There is a provision in there that says when the project is fully complete, if the value is less than $2.5M, we would apply a similar reduction to the notes. This way the developer won't have to access minimum market value and it is more manageable. This has been gone through with other developers and they want to resist as long as they can with minimum market values. If values are close to estimates, the Authority may want to pay off the note early and get a discount on the payoff. This is reflected in the documents. Commissioner Billings asked if the uses of the money for the project meet the normal guidelines for projects that HRA typically funds. Mr. Casserly answered yes. Adiournment MOTION by Commissioner Gabel to Adjourn. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:30 P.M. 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N O Vt O m W O W N aA.PA AAAAAAAAAAAA O O O O 0 0 0 0 0 0 0 0 0 0 0 0 A0 co W W O O O O O O O O ((,,�� A O) O D O O O O W �1 t11 V O to W V -CA O W O O O n O tl' 1 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O W O O O O O O O O 0 0 0 0 0 0 0 0 O O O O O o = n 0o CD z CDR _a 3 Z O m W Fes. l•, n O O N S a- ang FRIDL Fridley Housing and Redevelopment Authority Action Item DATE: July 30, 2009 TO: William W. Bums, HRA Executive Directoro(-'�' 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 annually elect a Chair and Vice Chair. Below is a list of the commissioners and the length of their current appointments. Commissioner End of Term Vacant June 2010 John Meyer' June 2011 Bill Holm June 2012 Pat Gabel (Vice Chair) June 2013 Larry Commers (Chair) June 2014 Recommendation Staff recommends that the Authority elect a Chair and Vice Chair as required by the Authority's by -laws to serve through June 2010. Fridley Housing and Redevelopment Authority MEMORANDUM DATE: July 30, 2009 TO: William W. Burns, HRA Executive Director FROM: Paul Bolin, Assistant HRA Director SUBJECT: Membership in Minnesota Solutions for 2010 Legislative Session As you are aware, Minnesota Solutions is a consortium of communities throughout the state that focuses on redevelopment issues, such as tax increment financing, redevelopment funding, transit oriented development needs, soil contamination and related issues.. Bonnie Balach, the group's Executive Director, spends a great deal of time working on legislative issues that affect communities like Fridley. She has been a valuable advocate for inner -ring suburbs and older cities-that have redevelopment needs. She is one of very few individuals with expertise in these specialized issues. Attached is a memo from Ms. Balach that provides information on a few of the varied issues MN Solutions will pursue during the 2010 legislative session. You will also note that MN Solutions will cease to exist after the 2010 session as Ms. Balach plans to retire. Ms. Balach sends out multiple legislative updates throughout the session and keeps a close eye on issues affecting Fridley. Ms. Balach has played a large role in the successes we have had the past few years with legislation affecting our Northstar Transit District and our near success in continuing our housing replacement TIF district this past session. There are many important issues that need to be addressed in the 2010 session. Recommendation Staff recommends that the Authority participate in Minnesota Solutions for 2010 at a cost of $2,000. July 7, 2009 TO: Paul Bolin, City of Fridley FR: Bonnie Balach RE: Minnesota Solutions' Contribution Although I prepared this invoice a couple of months ago, I refrained from submitting it for a number of reasons. It won't come as a surprise to you that cities are in financial turmoil in the face of local government aid "unallotments" and an uncooperative economy generally. I've been engaged in deliberations about the position of key funders and the prospects and opportunities for furthering our causes in the future. I have concluded that Minnesota Solutions should continue through the 2010 legislative session and then conclude operations. There are four issues that I feel it is my responsibility to see established before I retire from Minnesota Solutions at the end of the 2010 Legislative Session. In each of the following cases, it is accurate to say that there won't be much progress without Minnesota Solutions to focus the discussions: (1) Eminent Domain: We made very good progress on our eminent domain proposal last session. However, we have a lot of work ahead of us and if I don't take it on as point person, it won't go forward. It will take a lot of grassroots organization during the interim and I think I'm best qualified to lead that effort There simply isn't another group that has the resources or background to pursue this endeavor. Our proposed "fix" will likely focus on more flexibility for vacant, boarded and/or foreclosed properties. I have language that I will circulate in the next couple of weeks. (2) Redevelopment Account Funding: We have to figure out how to get longterm and reliable funding for the Redevelopment Account. We will ask for bonding next session and I'm fairly optimistic that we will get it. Eventually we need to find a source of cash for that program, though, and I'd like to lead some discussions about creative sources of money for that program. (3) TIF for Transit Oriented Development. The 2009 legislative session was pretty tough from a TIF perspective. There was a huge proliferation of TIF proposals last session. Many of them had a transit oriented development component. That is up from prior years and the need for tools to shape development around transit stations will only get greater. We did make headway in honing in on the House Tax Committee Chair's opposition and we're fortunate that we have some strong leaders in the legislature that have promised to continue the crusade during the interim. I think it deserves a continued push. In addition, we will request bonding for DEED to mete out via the Transit Improvement Program. (4) TIF for Neighborhood Recovery in the Wake of the Foreclosure Crisis: Finally, our proposal to increase TI F flexibility for neighborhood recovery in the wake of the foreclosure crisis just missed being passed by what can only be described as a fluke. We need to get that back on the table since it is very likely to pass. Minnesota Solutions, Inc. 70 Grove Street Mahtomedi, Minnesota 55115 651- 6534926 (office) 651- 260 -8690 (cell) May 13, 2009 TO: Paul Bolin, City of Fridley FR: Bonnie Balach, Executive Director Minnesota Solutions RE: Minnesota Solutions' contribution For membership in Minnesota Solutions for the 2010 Legislative Session ..................$2,000.00 Due and Payable Upon Receipt Remit to: Bonnie Balach Minnesota Solutions 70 Grove Street Mahtomedi, MN 55115 ACTION ITEM HRA MEETING OF AUGUST 6, 2009 MY of FRIDLEY Date: July 30, 2009 V To: William Burns, City Manager' From: Paul Bolin, Asst. Executive HRA Director Scott Hickok, Community Development Director Subiect: Delav Gatewav West Residential New Construction Proaram In April the HRA approved the termination of the exclusive development agreement with Blueprint Homes. Staff then examined different means to move the project towards completion and in June brought forward the Gateway West Residential New Construction Program for your review. The proposed Gateway West Residential New Construction program, modeled after the HRA's infill program, keeps the HRA in control of development while offering the properties to a much broader audience. There is little risk to the HRA under this scenario, as the lots will not be sold until the home plans have been reviewed and approved. Staff worked with Lake State Realty Services to place a value on the lots in order to develop sales prices that are fair and able to be financed by the lending institutions. Staff was absolutely flabbergasted when the appraisers reported back to us that our remaining 9 lots only have values between $12,000 and $16,000. After discussing the results with the appraisers and others, staff cannot argue with the results. The market has changed more than anyone ever dreamed it could. The values are too low for the HRA to consider selling the lots at the appraised value. Staff reviewed the pro's and con's (or $ and cents if you prefer) of actively trying to sell off the lots under the current market conditions vs. holding the properties for up to 2 years. We are hopeful that market conditions will "turn the corner" very soon and that our properties will again gain value. Krass Monroe prepared the attached spreadsheet, updating the TIF analysis for Gateway West to further examine the impacts of the drastic downturn in the market. Greg Johnson, of Krass Monroe, added the following analysis to the attached spreadsheet, "We have updated our tax increment analysis of the Gateway West TIF district (see attached schedule). In 2009, the HRA will collect approximately $10,428 in tax increment from this TIF District. Of the 16 lots, 6 lots have fully valued homes, averaging $254,050 in assessed value. The HRA is receiving an average of $1,738 in tax increment per home. Because of declining market values and a low frozen tax rate in this TIF district, we expect the tax increment to be lower in 2010. Our preliminary estimate is that the HRA will only collect about $9,755. For the 6 fully valued homes, the average assessed value is dropping 10.5% to $227,633, and returning about $1,494 in tax increment to the HRA in 2010. Our conclusion is that the loss of tax increment will average about $1,500 per parcel per year. If the selling price of the unimproved parcels will increase by more than $3, 000 over the next 18 to 24 months, then the HRA will be in a better financial position by waiting. The chart also demonstrates a peculiarity in the T.1. Act. As values decline and tax rates increase, property taxes per parcel will tend to increase, but not the tax increment. This is due to the fact that the tax rate for calculating tax increment is frozen, or fixed.,, Staff Recommendation: At this time, staff recommends taking no action on the Gateway West Residential New Construction Program. Staff has the program ready to roll out at a moment's notice once market conditions improve. Staff further recommends the HRA not actively market these properties over the next 18 -24 months (or until market conditions improve). If the HRA is approached by a buyer /builder team that is willing /able to pay a more reasonable price for the property, staff would bring the proposal forward to the HRA. 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C 0 0 0 0 0 0 0 0 0 0 0 A bo A A mmmmmmmmmmm aaaQnaannaQ C C C C C C L C C C C o N »OCO W aD to(DW (DI K) W 3 m e e N m N N m m N N N m N O N m m m O O m nnanaaannaQ m m m m m m m m m m o 0 o e o 0 0 0 o Al M n C N W m m m m m m m m m m m A A N N N N N N m m �4 tmn m m NNN >_NNAW Cf X m OD A A W W N r m O t o > -n a O > Q » » » k . ► C CD ;O m M N N NOti CDN4 S ID m m0 m O 0 0 0 0 0 0 0 0 0 0 0 o m m tm0 m A J O CO W W n m A 0 0 > 3 x N w N o to m A v o1 W CD W A W A A OD to tD J A J to N to tp O N N N ° 0 0 0 0 0 0 0 0 0 0 0 0 m N N N N J N m> et i, Lake State Realty Services, Inc, 2140 Otter Lake Drive White Bear Lake, MN 55110 651- 653 -0788 Fax 651 -653 -1381 E -Mail lakestate@goldengate.net July 13, 2009 Mr. Paul Bolin, AICP City of Fridley HRA 6431 University Avenue NE Fridley, MN 55432 RE: Restricted Use Market Value of Nine Residential Lots Located in the Gateway West Second Addition Lots on 3`d Street Ne and 57' Place Ne Fridley, Minnesota Dear Mr. Bolin: Pursuant to your request, an inspection and restricted -use appraisal have been made of the above referenced residential lots. Understand that this report is restricted for the City of Fridley's internal use. The conclusions set forth in this report may not be understood properly without additional information in the appraiser's work file. Also, the value concluded is limited to the scope of work performed, and the purpose of this report, which is to determine a market value for internal planning purposes and possible public offering of the nine residential lots valued herein. This appraisal estimates the current market value of the described real estate, subject to the certification and the assumptions and limiting conditions herein stated. After careful consideration of all the pertinent factors influencing market value, it is my opinion that the subject property has a market value in fee simple estate as of July 8, 2009 of: $12,000 to $16,000 per each of 9 lots This appraisal report has been completed in conformance with the Uniform Standards of Professional Appraisal Practice (USPAP) of the American Appraisal Foundation. Please feel free to contact me if you have any questions regarding this report. Thank you for the opportunity to assist you in this valuation matter. Respectfully Submitted, Minnesota #40024 3 e -1 . 8 - :1 -2010 Certification certify that, to the best of my knowledge and belief............ • 1 have made a personal inspection of the appraised property which is the subject of this report and all comparable sales used in developing the estimate of value. • The statements of fact contained in this report are true and correct, subject to the Assumptions and Limiting Conditions. • My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. • 1 have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. • The appraisal assignment was not based on a requested minimum valuation, a specific) valuation, or the approval of a loan, nor upon the occurrence of a subsequent event. • My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Practice of the Appraisal Institute. • No has provided significant professional assistance to the appraiser signing this report. • 1 will not reveal any of the findings contained in this report to anyone, unless by due process of law, I need to testify publicly to any findings contained herein. • In my opinion, the market value as of this a day of July, 2009 is: $12,000 to $16,000 per each of 9 lots 1 i Ju i effr - rtz Paul G. Schwartz Certified Gener I A praiser Certified General Appraiser Minn.. #4002423 exp. 8/31/ 0 Minn. #20002323 exp. 8/31/2009 a] Assumptions and Limiting Conditions The certification of this appraisal report is subject to the following assumptions and limiting conditions: 1 The Appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or the marketability of the title. 2• The property is assumed to be under responsible ownership and management. 3. The property is appraised as though clear and free of any liens, encumbrances, or indebtedness, unless stated otherwise. 4. To the best of this appraiser's belief, the Information contained in this report is true and reported correctly. The information in this report, while not guaranteed, has been taken from sources or records believed to be reliable. 5. The Appraiser assumes that there exists no hidden defects with the site, sub -soil, or Improvements, which would render it more or less valuable. 6. Disclosure by the Appraiser of the contents of this appraisal report is subject to review in accordance with the by -laws and regulations of the professional appraisal organizations with which the Appraiser is affiliated. 7. On all appraisals involving proposed construction, the appraisal report and value conclusions are contingent upon completion of the proposed Improvements in accordance with the plans and specifications submitted to the Appraiser for review. 8. The Appraiser is not required to appear in court or give testimony because of having made this report, unless arrangements have been made in advance. 9. This report, or any portions thereof, will not be distributed, or otherwise disseminated, to anyone other than the person whom commissioned this or those Involved in the certification. 10. This entire appraisal report must be considered as a whole and any excerpts or portions from this report cannot be considered separately. 11. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws, as well as applicable zoning regulations and restrictions, unless otherwise stated in this report. 12. It is assumed that all required licenses, consents or other authority from any local, state, or federal governments has been obtained or can be renewed. 13. It is assumed that the subject improvements are within the stated boundaries, and that there are no encroachments on neighboring property, or neighboring encroachments on the subject property, unless otherwise stated in this report. 14. The existence of potentially hazardous material such as urea- formaidehyde foam insulation, asbestos, existence of toxic water, toxic waste, lead -based paints, or radon gas may have an effect on the value of the property. The Appraiser is not qualified to determine If such substances are present. The client may wish to consult an expert in this field. 15. Acceptance of or use of this appraisal report constitutes an understanding of and acceptance of these assumptions and limiting conditions. 16. The maximum liability which can accrue to the Appraiser or the Company, as a result of performing this appraisal, is limited to the amount paid for the appraisal. 5 Summary of Salient Facts and Conclusions Location /Address: The nine subject lots are vacant With the following addresses: ON 57T" Place NE - 281 and 291 On 3d Street NE - 5961, 5801, 5755, 5745, 5735, 5725, and 3765 All in Anoka County, City of Fridley, Minnesota Property Type: Vacant platted residential lots Owner: Fridley City HRA, with a mailing address of 6431 University Avenue NE, Fridley, MN 55432 Interest Appraised: Fee Simple Estate Appraisal Purpose /Use/ Provide an opinion of market value of the fee simple interest of nine Intended User: residential lots owned by the City of Fridley HRA. The intended user is the City of Fridley HRA, who will rely on the value conclusions in this restricted appraisal for internal planning purposes and possible public offering of the subject nine lots. This is a restricted appraisal report and it may not be fully understood without additional information in the appraisers file. Improvement Description: All nine subject lots are vacant and have no improvements. Site Description: Sizes: Each lot varies from .16 to .24 acres in size Shape: Primarily rectangular and trapezoidal in shape, but all conventional in dimensions to allow development Topography: Generally level and at street grades Utilities: All available within road rights -of -way (including water, sewer, electricity, telephone, etc.) Zoning: Hyde Park Neighborhood, as governed by the City of Fridley Guided Land Use: Redevelopment in the 2030 City of Fridley Comprehensive Land Use Plan Highest and Best Use: Each lot is capable of supporting a single family detached residence. Assessors 2009 Estimated The estimated market values of the lots vary from $61,700 to Market Value and Annual $67,800. There are no property taxes due as the lots are owned Property Tax Amount: by a tax exempt entity. Estimated Market Value: 1 $12,000 to $16,000 per lot Date of Valuation: July 8, 2009, the date of appraisal inspection Appraisers: Julie Jeffrey- Schwartz, Certified General Appraiser, MN #4002423 Paul G. Schwartz, Certified General Appraiser, MN #20002323 R Pertinent ADpralsai Data Market Value Defined: Market value as utilized in this appraisal report conforms to the following definition obtained from pages 222 -223 of The Dictionary of Real Estate 62PLaisal, Third Edition, The Appraisal Institute. The most probable price which a property should bring in a competitive and open market under aft conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected buy undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby. 1. Buyer and seller are typically motivated. 2. Both parties are well informed or well advised, and each acting in what they consider their own best interest. 3. A reasonable time is allowed for exposure in the open market. 4. Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing orsa /es concessions granted by anyone associated with the sale Purpose and Use of Report: The purpose of the appraisal is to provide an opinion of market value of the fee simple interest of the nine subject lots. This appraisal is being completed for the City of Fridley HRA (client and intended user) to aid in internal planning purposes and possible public offering of the subject nine lots. This is a restricted report and it may not be fully understood without additional information in the appraisers file. Scope of Report: The scope of the appraisal describes the extent of investigation within the appraisal process. This investigation includes the extent of collecting, confirming, and reporting of data used within the appraisal report, and on which the estimated value conclusion is based. Certified General Appraisers Julie Jeffrey - Schwartz and Paul G. Schwartz inspected and photographed the subject lots on July 8, 2009. General and specific information related to the subject property and its location was obtained from various sources. Based on the information gathered and investigation of the market, the highest and best use conclusion was determined. The highest and best use determined the applicable approach to value, which in the instance of the subject, included only the sales comparison approach. The highest and best use determined the types of comparables to obtain for use in the sales comparison approach. This appraisal is a restricted appraisal report, with no departure from the Uniform Standards of Professional Appraisal Practice (USPAP) requirements, and it is presented 7 in compliance with the reporting requirements of Standards Rule 2 -2 (b) of USPAP. The client, City of Fridley HRA, specifically Paul Bolin, AICP, has requested we perform a restricted -use appraisal for the function of estimating the market value of the fee simple interests of the nine subject lots, for internal planning purposes and possible public offering of the subject nine lots. Property Rights Appraised: The property rights appraised are the fee simple estate. Address /Location: The subject is located in the Anoka County, within the City of Fridley, just to the west of University Avenue NE. Specifically, the lots are located on 3`d Street NE and 5r Place NE, with the following applicable street addresses: 281 5r Place NE 291 5r Place NE 3765 3`d Street NE 5725 3rd Street NE 5735 3rd Street NE 5745 3'd Street NE 5755 3rd Street NE 5801 3rd Street NE 5961 3rd Street NE Legal Description: Per the county tax records: 281 5r Place NE 233024230164 291 5r Place NE 233024230165 3765 31 Street NE 233024230156 5725 3rd Street NE 233024230161 5735 3rd Street NE 233024230159 5745 31 Street NE 233024230158 5755 31 Street NE 233024230157 5801 31d Street NE 233024230155 5961 31d Street NE 233024230151 Lot 8, Block 1 Gateway West 2 "d Addtn. Lot 9, Block 1 Gateway West 2 "d Addtn. Lot 2, Block 1 Gateway West 2nd Addtn. Lot 6A, Block 1 Gateway West 2 "d Addtn. Lot 5, Block 1 Gateway West 2 "d Addtn. Lot 4, Block 1 Gateway West 2nd Addtn. Lot 3, Block 1 Gateway West 2nd Addtn. Lot 1A, Block 1 Gateway West 2nd Addtn. Lot 1, Block 1 Gateway West 21 Addtn. Zoning and Guided Land Use The nine subject lots are zoned °Hyde Park Neighborhood" through the City of Fridley. Specifically, they are located on the eastern and southern portions of this neighborhood. For more information, please see the zoning regulations are located in the addenda of this report. Additionally, the subject parcels are guided in the City of Fridley Comprehensive Land Use Plan as "Redevelopment°, as part of a larger area of the city also designated (14.3% of the total area in the city is so guided). The subject is on the eastern side of this land use designation. For more information about this land use guiding, please see the 2030 Land Use Map in the addenda of this report. H City Description• As the client is the City of Fridley, a description of the City and neighborhood are not included, as the intended user of this report already knows an adequate amount of information about the City of Fridley and the subject's neighborhood. Subject Description: The subject lots vary from .16 to .24 acres in size, and are all platted lots part of the Gateway West Second Addition to the City of Fridley. Most of the lots abut University Avenue NE to the east, but front on 3rd Street NE (7 lots) and 5r Place NE (2 lots). The City of Fridley has been aggressive in recent years to acquire improved properties in this area for purpose of redevelopment. The City intended and did sell 6 lots to a local developer in 2007 for $43,000 each. The developer built new single family detached residences on the lots and then sold the house and lot package. The subject nine lots are all primarily level and at roadway grades and have buildable soils. They have all essential utilities available in the roadway rights of way, including gas, electric, phone, cable, water and sewer. There are no adverse easements on these lots per the plat map which is attached in the addenda of this report. Highest and Best Use: Based on the current economic condition of the Twin Cities residential real estate market, the highest and best use of these nine lots is to hold them until it is financially feasible to construct a single family detached dwelling on each lot. With current depressed real estate values, there is no profit (in fact negative profit) from new construction activities, as secondary home values are lower than the land value and the replacement cost new less accrued depreciation, providing no incentive for new construction. Once market conditions are in equilibrium based on supply and demand factors, each lot is suitable for one single family detached dwelling. This use is physically Possible, legally permissible, and will eventually be financially feasible and the maximally productive use of the land. Sales Com arlson Market roach: To obtain an adequate amount of comparable data, the Fridley City and Anoka County Assessor's Office records were utilized, as was information from the local marketplace available through various data bases. Primary emphasis for the comparable's selection was lots in similar locations and sharing similar physical attributes as the subject nine lots which they are being compared. Sales over the last three years were considered, with the most recent (those which sold in the last year) being deemed most suitable for comparison purposes, due to significant value declines in the Twin Cities residential real estate market. An adequate amount of comparab data was located. It is summarized below: le sales 7 m c 0 3 w O w w m U N m m O m E .t. 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O M � M I O CO 04 04 N 609' w O CA M � co CA CA a Go O o CA o O m w� IN M N D P M Ci% O to CA t1O M P W W W W y ++ CL Z Z Zr _ m Z Z� ZL o Q1 .: rn10 � .. = m rn Q= > m av H LL m _ = mu1 cZc Z 'v E La — 5' c� N Nd U O j MM w L _Z fi p w V 'Q M M 8 N 7 N- M D O w O m Ow co C- .Y $ C 8 N N Z Im O U A A U N P U O f- o A co n CO IL w U � J 4 U 0 a P N M 'T CO CO C-- Go O O � m c 0 3 w O w w m U N m m O m E .t. Cn p � � w O -a L ay � O c a o w E �. c o o N C 7 w .a C AD ° a ca EL 7 w ; O 0 C w m 'O E m y a m t c +r O p E W CL o NC cV c ` C O O ` E w m O m aj O. O N N w C•7 O C -p w m N C w m O C O m N E m w d E O I- o have all sold since September 2008. Many have sold wit"h"i 3 months�p orr t the effective date of valuation. A total of 11 comparables were obtained in the Fridley, Columbia Heights and Coon Rapids marketplaces. Four of the 11 comparables were sales of vacant and only, while 7 were sales of nominal - valued dwellings on lots similar to the subject lots. The comparables were adjusted for differences in market conditions at the rate of 25% per year, or 2% per month. This adjustment is consistent with MLS statistics during the time frame analyzed. The comparables with nominal - valued dwellings had the approximate contributory value of the dwellings subtracted from the sales price to arrive at the contributory value of the vacant lot. After the contributory value of the lot adjustment was applied, the time adjustment was applied, to arrive at a time adjusted sales price for the land only. The adjusted prices for the lots ranged from $11,760 to $19,796. Generally, the larger the lot, the greater the sales price. The. adjusted average of all comparable data is $15,791, which is very similar to the adjusted median of $16,450. Estimated Market Value: Considering the subject lots, locations, size, and surrounding land uses, the subject lots have an estimated market value of $12,000 to $16,000 each, which also considers current market conditions. 11 ri INFORMATIONAL ITEM HRA MEETING OF AUGUST 6, 2009 MY of FRUREY Date: July 30, 2009 To: William Burns, City Manager From: Paul Bolin, Asst. Executive HRA Director Subject: Northstar Update Lease Agreement: Staff and legal counsel are still working on the Northstar ground lease with the Metropolitan Council and other parties. Many different parties need to review and comment on each draft and it is a slow process. The most recent delay is a disagreement we're having with the Metropolitan Council over how to deal with possible environmental liability. According to our attorneys, the Met Council has agreed that it and its contractors will comply with all environmental laws and neither it nor its contractors will bring hazardous substances on to the Property unless commonly used in transit operations or unless the HRA approves in writing. However, (1) the Met Council has limited its liability for breach of this agreement to the amount for which it would be held liable under Minn. Statutes chapter 466 (which caps the amount of its tort liability) and (2) the Met Council will take no responsibility for hazardous substances being brought onto the property by someone other than the Met Council or its contractors. Our attorneys believe these limitations require substantial modification. Once the lease is executed, the HRA will have no control over who or what comes onto the property. In addition, the indemnification that the Met Council gave to BNSF in its agreements with them did not contain these limitations. The HRA is not asking for anything more than Met Council agreed to give BNSF. We anticipate this issue being resolved prior to your September meeting and bringing the agreement forward for your approval. Also at the September meeting, we will hold a public hearing regarding execution of the lease in accordance with the HRA Act. KM: 4835 -5300 -3268, v. 1 Fridley HRA Housing Program Summary Cover Page August 6, 2009 HRA Meeting Report Loan Application Summary Loan Origination Report Remodeling Advisor Description Loan application activity (e.g. mailed out, in process, closed loans) for June /July'and year -to -date. Loan originations for June /July and year -to -date. Shows the number of field appointments scheduled and completed the Remodeling Advisor Services administered by Center for Energy and Environment. �wly s Lee ,a� e-+ �v4k(q, l Tl�y lo- t'e— �-� oa iL 5 L Pe op t e_ o— +A� ✓l kX"be'rS �- Leo r.s a. r a- c a- 14 fnaS I('C c-e I Y'e.cf , H:\—Paul's Documents\HRA\HRA Agenda Items\2009\May 7, 2009\Housing Program Cover May.doc 0 cfl0000�oo�o co O N N O N .Q . v � d 3 W W N U c .o r N 0 0 0 0 r O O r O d r O d •& O O L Qa` c 0 R 10 c O N O O r 0 0 0 N M Q R L _ t Q l0 'O !0 O C 3 M 0 0 0 0 0 0 0 r O %T N V d i ca 0 J Ci 3 O N O N Q' O :i+ d 0 0 0 0 0 0 0 0 0 r" V , O 0 CL d C' c o �a N 0 +r o 00 aN+ O Q C �I Z -cc N O y N m CF) O �, O R O a CD N o 0 ~ o CU N W a p c .� LL 3 sLL C c � °- 0- � cv � c o 4 �. C c LL I I N O L. J O O t LL t = to Ii. lL J � m to v 2` ■O J N J c_ CD N c c d 0 OC C J Q ca co V li OL E cwW � O ,A O m d C "LL L) CL � aaaa o (o ��LML uj =0 Z �. a IL x= g g U a 0 Loan Originations HRA Loans (incl. CFUF C HRA Deferred Loans Other Loans (non -HRA) Total Funding Sources Fridley HRA Loan Origination Report June 26, 2009 This Previous Month Months 3 4 1 1 4 5 Since 1/1/2009 7 1 8 This Previous Month Months Since 1/1/2009 Fridley HRA $ 33,183.00 $ 42,895.00 $ 76,078.00 MHFA FUF /CFUF $ 50,490.00 $ 12,225.00 $ 62,715.00 Met Council $ - $ - $ - CDBG /HOME $ - $ - $ - CEE $ $ - $ - Other $ - $ - $ - Total $ 83,673.00 $ 55,120.00 $ 138,793.00 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 Since 111/2009 Single Family 3 4 7 Duplex - - - Tri -Plex - - - 4 to 9 Units - - - 10 to 20 Units 1 - 1 20+ Units - - - Total 4 4 8 Types of Improvements Interior # of Projects % of Total Bathroom remodel 1 9% Kitchen remodel 1 9% General plumbing Heating system Electrical system Basement finish Insulation Room addition Misc. interior projects Foundation Exterior Siding /Fascia/Soffit Roofing Windows /Doors Garage Driveway /sidewalk Landscaping Misc. exterior projects 0% 1 9% 2 18% _ 0% 0% 0% 0% 0% 0% 0% 4 36% 1 9% 0% 0% 1 9% 0) O C) N U) V U) L U) MOMMI a Q � _CD O 'O E • - U. W m O Cl N t0 N 2 N d d E d C r O , O " d' �C QU a N r d d 3 �O v CL CO Q M rn o 6 90 0 , o � r' C ..Q L L i y�j vokam FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY August 6, 2009 3 =*aiii� 1. Anoka County HRA I had reported in early June that the County expected to hear back from their attorney's on the ability to levy county -wide, sometime in July. We have continued to follow this issue and are currently awaiting an update from Karen Skepper, as we have yet to see anything new on this issue. Staff will provide the most up to date information next Thursday night. 2. Northstar Update Dr. Burns has prepared a survey for the local industries to further gauge the interest and/or need for increased bus service in Fridley due to the opening of Northstar. Results are expected in September. For your information, attached is the latest schedule for the train. 3. Gateway Northeast Update It has been a quite couple of months in regards to potential acquisitions. We have had no further contact from the Tae Kwan Do center, but did hear from the owner of the veterinarian clinic who expressed that he may have some interest in being part of a redevelopment of the area (though he currently has no interest in selling). We did have a busy summer keeping the vacant buildings secured. We have had a series of break -ins in the old Sinclair, the former Van-o -lite buildings and the former Chinese Restaurant. The police have stepped up enforcement in the area and we have had Advance Companies fortify the broken windows and doors. 4. Neighborhood Stabilization Program Anoka County, using the Neighborhood Stabilization Program funds, has submitted purchase agreements for the following properties in the City of Fridley: 4615 2nd Street NE 5310 5th Street NE We will continue to encourage them to purchase additional vacant foreclosed properties within the community. If there are any items you would like covered in upcoming issues of the Non - Agenda Update please send me an e -mail. bolinp @ci.fridley.mn.us 11 PROPOSED NORTHSTAR SCHEDULE Estimated Schedule, Weekdays: Big Lake to Downtown Minneapolis 4TATION AM AM _ AM AM AM PNlI DEPARTURE TIMES Big Lake 5:18 5:53 6:23 6:53 7:33 4:52 ARRIVAL TIMES Elk River 5:28 6:03 6:33 7:03 7:43 5:02 Anoka 5:39 6:14 6:44 7:14 7:54 5:13 Coon Rapids — Riverdale 5:43 6:18 6:48 7:18 7:58 5:17 Fridley 5:53 6:28 6:58 7:28 8:08 5:27 Downtown, Minneapolis Ballpark 6:10 6:45 7:15 7:45 8:25 5:44 Estimated Schedule, Weekdays: Downtown Minneapolis to Big Lake STATION AM PM PM PM PM P DEPARTURE TIMES Downtown Minneapolis Ballpark 6:25 3:45 4:15 4:45 5:15 6:00 ARRIVAL TIMES Fridley 6:42 4:02 4:32 5:02 5:32 6:17 Coon Rapids — Riverdale 6:52 4:12 4:42 5:12 5:42 6:27 Anoka 6:56 4:16 4:46 5:16 5:46 6:31 Elk River 7:06 4:27 4:57 5:27 5:57 6:42 Big Lake 7:17 4:37 5:07 5:37 6:07 6:52 (Subject to change prior to start of Northstar service.)