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HRA 11/05/2009 - 6224-Pcb�ic November 5, 2009 HRA Meeting Regular Meeting Agenda 7:00 a.m. City Hall, Council Chambers Call to order Roll call Action Items 1. Approval of expenditures 2. Approval of October 1, 2009, Meeting Minutes 3. Approval of Home & Garden Show Administrative Contract 4. Approval & Awarding of Demolition Bid — Gateway Northeast 5. Approval of Interfund Loan — General Fund to Gateway Northeast 6. Approval of 2010 Housing & Redevelopment Authority Commission meeting dates Informational Items 1. Bond Call 2. Northstar Update 3. Housing Loan Program Update Adjournment C:\Documents and Settings \bebergj\Local Settingffemporary Internet Files \Content.0utlook \VWCEOPO4 \November 5 -2009 Agenda Outline.docC:\Documents and Settings\bebergj\Local Settings \Temporary Internet Files \Content.Outlook \VWCEOPO4 \November 5- 2009 Agenda Outline.doc CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION OCTOBER 1, 2009 CALL TO ORDER: Chairperson Pro Tem Gabel called the HRA Meeting to order at 7:01 p.m. ROLL CALL: MEMBERS PRESENT: Pat Gabel John Meyer William Holm MEMBERS ABSENT: Larry Commers NONMEMBERS PRESENT: Paul Bolin, HRA Assistant Executive Director ACTION ITEMS: 1. Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures as submitted. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of September 3, 2009, Meeting Minutes MOTION by Commissioner Holm to approve the minutes as presented. Seconded by Commissioner Meyer. Chairperson Pro Tem Gabel noted that the first line should read meeting, not "special" meeting. Also on page two, last sentence reads "200 year lease is starting and the HRA is not in the business of operating businesses ", change businesses to rail stations. Lastly on page three, last sentence "there is even an agreement to substitute storm water management", is that correct or what does that mean. Paul Bolin, HRA Assistant Executive Director, said it is the ability to change storm water management from a pond to underground storm water management or move it elsewhere on site. Chairperson Pro Tem Gabel said if it reads correct, then that part does not need to be amended. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MINUTES APPROVED AS AMENDED. 3. Approval of Resolution declaring Certain Properties Blighted and Authorizing Demolition of Properties Paul Bolin, HRA Assistant Executive Director, said the HRA currently owns six vacant properties along University Avenue in the area referred to as Gateway Northeast. The buildings are blighted and present a poor image along University Avenue. There have been problems with break -ins, vandalism, copper theft, cost of maintenance, dangerous "booby trapping ", and illegal dumping. Mr. Bolin said that the city's Chief Building Official conducted inspections and blight analysis for these buildings. The properties exceed the Statutory requirements for a substandard building. Substandard/blighted properties are when buildings are in need of repairs and code upgrades equal to or greater than 15% of a similar new structure's cost. Mr. Bolin said that costs were determined using R.S. Means Cost Data — 200812009 Edition and all buildings far exceed the 15% rule. Five buildings need fire sprinklers, all need new roofs, HVAC, plumbing upgrades, and would require substantial improvements to meet the Energy & Accessibility Codes (the AC costs are not included below). ♦5865 University Ave. (Oriental Hse) — 32% ♦5924 University Ave. (Alano) -43% ♦5945 University Ave. (New VOL) -20% ♦6005 University Ave. (Carquest) -19% ♦6041 University Ave. (Old VOL) -19% +6071 .University Ave. (Sinclair) -39% Mr. Bolin said that the Resolution allows for the demolition of the properties now, while allowing the properties to be included in a future TIF Redevelopment project. HRA would have three years from the date of demolition to create a TIF District. If a project is not ready at that time, collection of increment can be deferred for four more years. Staff recommends adopting the resolution and moving forward with soliciting bids for late fall demolition. Approval of this resolution also requires City Council approval. Chairperson Pro Tem Gabel said that there is a definite risk leaving the buildings there and HRA does not need the liability. Some homeless person could attempt to live in there and create an incredible problem. Commissioner Holm said that HRA didn't have enough control of properties in that section but with these properties in the area, a redevelopment could happen. Chairperson Pro Tem Gabel asked for an explanation of a marquee project. Mr. Bolin said that with the rail station opening in November and a redevelopment of the Cub Foods site propose, there will be interest in our properties along University Avenue. Developers will want to be in Fridley because of these new projects. This will lead to a nice project on University Avenue. MOTION by Commissioner Holm to approve the resolution declaring certain properties blighted and authorizing demolition of properties. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Approval of Home Improvement Demonstration Program Paul Bolin, HRA Assistant Executive Director, said that staff is proposing creation of a demonstration home improvement program that will encourage reinvestment in SF housing stock, showcase upgrades /improvements to make older homes more livable, promote our loan program, promote remodeling advisor services and put people back into foreclosed homes. Mr. Bolin said that low home values make this an opportune time for a demonstration program. A contractor, realtor, and house will be selected and a budget will be developed. Then an open house will be held before, during and after to show the process. After the project is complete the property would be marketed for sale. Mr. Bolin said that staff recommends HRA approve a motion authorizing staff to develop the framework necessary to implement the home improvement demonstration project. Staff will develop specifics of the project and bring a resolution forward at the December meeting for implementation. Commissioner Holm asked for staff to present the scope of the project, dollars, time frame etc. at the December meeting. Mr. Bolin said that information will be provided. There will be an updated list of properties that are available and staff will look at which homes are structurally sound. Commissioner Holm thinks the program is a great idea. Chairperson Pro Tem Gabel thinks this program is why HRA is here. She asked what the problems were with the Coon Rapids program. Mr. Bolin said that the biggest problem with the Coon Rapids program was when they went into the project they didn't spend enough time on the front end of the project, working out all of the mechanisms for making the purchases. When they would find a property to purchase, staff would make an offer contingent of HRA approval and a lot of times the bank would reject their offer. By the time an approval was received to purchase the property, the property was already sold. Some changes have been made to their program and it is set up that staff can get approval from the Board Chair so they don't have to wait until an official meeting to make an offer. Chairperson Pro Tem Gabel said that a lot of details need to be worked out but there are many opportunities out there right now. Mr. Bolin said that this will be a home improvement demonstration program not a foreclosed home removal or remediation program. Part of staff's efforts this winter will be at the legislature to get a scattered site acquisition program running again. Last session this was approved by the House /Senate and then the Governor vetoed the Bill. The scattered site program would be the mechanism to purchase the worst of the worst homes and eventually tear those foreclosed properties down. Chairperson Pro Tem Gabel said that there may be one house empty in a neighborhood that can be fixed up that is bringing down the entire neighborhood. MOTION by Commissioner Holm to approve the Home Improvement Demonstration Program. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 5. Approval of TIF District #20 for Columbia Arena Redevelopment MOTION by Commissioner Holm to remove the approval of TIF District #20 for Columbia Area Redevelopment from the table. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE ITEM REMOVED FROM THE TABLE Paul Bolin, HRA Assistant Executive Director, said that the developer had asked that the HRA postpone taking any action on this item until October Is`. Staff has had discussions with the developer which indicate that the new clinic will likely be built on the Unity Hospital Campus. The developer is working with a senior housing group to put a project on the Columbia Arena site. Given the amount of doubt, Staff recommends the HRA table the item indefinitely. MOTION by Commissioner Holm to table the approval of TIF District #20 for Columbia Arena Redevelopment indefinitely. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS: 1. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said in September one loan was closed and year to date a total of 11 loans were closed. There was also one remodeling advisor visit in September for a total of 13 year to date. The numbers are identical to where they were a year ago. Mr. Bolin said that there are currently six delinquencies that are three months or older. Of those six loans, three have been discussed before and the properties have been foreclosed on which makes it highly unlikely the funds will be recovered. The total outstanding principal of the six loans is $78,000. Chairperson Pro Tem Gabel said that the HRA will more than likely end up writing these loans off. Mr. Bolin said yes. Commissioner Meyer asked if staff knew anything about the circumstances of the foreclosed properties. Mr. Bolin said that in most cases, because of confidentiality, staff does not know about the situation. A lot of the information is confidential and staff would not have access to that information; all records are kept offsite. Commissioner Meyer asked if there was some kind of relief that could be given to the people who are in foreclosure. He asked if staff could work with them in some fashion or another to relieve the distress of the situation. Chairperson Pro Tem Gabel said that it would be helpful if they could hold off paying on the loan to let them get back on their feet, possibly give them some temporary relief. Mr. Bolin said that the biggest difficulty to help people out is that people don't ask for help early enough in the process. The key is for people who are having problems to contact their primary lender early on in the process. Large banks are willing to work with people and the last thing they want to do is take over another home. NONAGENDA UPDATE: North Star Rail Paul Bolin, HRA Assistant Executive Director, said that at the November meeting more detailed information will be available. Tickets can be purchased on the city or North Star website. Free tickets will be given away to ride the train during grand opening weekend. Commissioner Holm said that even those who don't get to ride the train will get a pass to ride the following weekend. ADJOURNMENT: MOTION by Commissioner Holm to Adjourn. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:15 P.M. Respectfully Submitted, Krista Monsrud, Recording Secretary ACTION ITEM ri HRA MEETING OF NOVEMBERS, 2009 MY OF FRIDLEY Date: October 29, 2009 To: William Burns, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subiect: Home & Garden Show Admin. Contract Background The Fridley HRA has been the fiscal agent for the Home & Garden Show since its inception 12 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 2010 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 2010 Home and Garden Show, as detailed in the attached contract. CV Draft — 9/25109 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. a 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 2010 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 returned 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 International 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 returned 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 returned 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. North. Metro Home Garden Show Admin Contract -2010 9/25/2009 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 attomeys' fees, based on fines or penalties resulting from any failure on the part of Client to comply with any laws, ordin cetradees or secret, otions or other failure to obtain licenses or permits as may be required on any patent, copyright, 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 monty If Client brings work in on a floppy disk or cassette tapes, Client shall first make and retain a backu p co p Contractor cannot be responsible for loss due to error or damage. TERM AND TERMINATION: This Agreement shall commence on September 30, 2009, 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 Marsha *.. - President HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY By: By: Its: Chairperson Its: Executive Director Date: Date: -2- F1 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 thirty (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. CV Draft — 9/25/09 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. 91h 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 2010 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 returned 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 International 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 returned 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 returned 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. North Metro Home Garden Show Admin Contract -2010 9/25/2009 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 September 30, 2009, 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 YT,F,W YAM, I/ILl ��AAT��i Marsha Wagner President D. i..�. ._ _l -'_" .I HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY By: By: Its: Chairperson Its: Executive Director Date: Date: -2- 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 thirty (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. Affirl ACTION ITEM ri HRA MEETING OF NOVEMBER 5, 2009 MY of FRUKEY Date: October 29, 2009 To: William Burns, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subiect: Gateway Northeast — Awarding of Demolition Bid Staff worked with the City's Public Works Department to carryout the formal bidding process for the Gateway Northeast demolition work. Notices were placed in the Fridley Focus on October 15, 2009, the Construction Bulletin on October 19th and 26th, and the bid opening will take place at 10:OOAM on November 5, 2009. Staff will bring forward a resolution for the HRA to approve the winning bid on November 5th. Due to the age of the buildings, presence of high levels of hazardous materials, the complexity of the gas station demolition, and very recent (July and September) changes in MPCA requirements Liesch Associates was contracted to assist in development of the hazardous material abatement and removal portions of the bid packet. The recent MPCA changes previously mentioned include testing and removal of caulking material (due to PCB's) and a mandatory 2 day waiting period between hazardous material abatement and demolition to allow for air quality testing. Liesch Associates will oversee the hazardous materials removal and document proper disposal of all materials. Demolition has become much more complex, due to stricter environmental standards and reporting requirements, since the HRA last took on a demolition project in the fall of 2005. Staff would like to thank the City's Public Works Department for their assistance in this demolition project. From marking City utility locations to figuring cubic yards of asphalt removal the preliminary field work they have done will ensure that the HRA gets the most competitive bids possible. Q FINANCE DEPARTMENT RICHARD D. PRIBYL CITY OF FRIDLEY W1% FINANCEDIRECTOR TO: WILLIAM W. BURNS, EXECUTIVE DIRECTOR HRA FROM: RICHARD PRIBYL, FINANCE DIRECTOR SUBJECT: APPROVAL OF INTERFUND LOAN: GENERAL FUND TO FUND 474 (FUTURE TIF DISTRICT GATEWAY NORTHEAST Date: October 30, 2009 Soon additional expenditures will be incurred in conjunction with the property known as "Gateway Northeast ". This activity is intended to be captured as a tax increment cost, but as of this time the TIF District has not been created in order to capture any TIF revenue. For this reason we are requesting that a loan be provided to Fund 474 which will be a future Tax Increment Disctrict and the loan will allow the fund to maintain a positive cash and fund balance. The amount of the loan being requested for this fund is $175,000. HRA RESOLUTION NO. 2009- RESOLUTION APPROVING INTERFUND LOAN BETWEEN GENERAL FUND AND HRA FUND 474 FUTURE TAX INCREMENT FINANCE DISTRICT GATEWAY NORTHEAST BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority ") as follows: Section 1. Recitals. 1.01. The Authority is authorized by Minnesota Statutes 2001 Supplement Section 469.174, subdivision 3 and Section 469.178, subdivision 7 to approve by resolution any interfund loans made after July 31, 2001 that are to be repaid with tax increment from any of the Authority's tax increment financing districts. 1.02. The Authority is authorized to disclose by resolution the terms of the interfund loan, i.e. principal amount of loan, interest rate, and length of loan. 1.03. The Authority is authorized to limit the principal amount of the interfund loan to the largest negative cash balance that existed at any one time in the fund receiving the loan. Section 2. Findings. 2.01. The Authority hereby finds it necessary to create an interfund loan between its general fund and the fund for the future TIF District known as Gateway Northeast. This loan is for the express purpose of providing financing for Gateway Northeast projects until such time that enough tax increment is generated in the future TIF district as needed to pay back the interfund loan. Section 3. Adoption of Interfund Loan. 3.01. The following are the terms of the interfund loan to be approved: Loan Amount Gateway Northeast $175,000.00 Interest Rate: 0% Length of Loan: December 31, 2014 3.02. The Authority will create and maintain a loan payment schedule for the interfund loan that will be approved by this resolution. 3.03 The future TIF District Gateway Northeast will pay off the loan early if sufficient tax increment is available. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 5TH DAY OF NOVEMBER, 2009. LAWRENCE R. COMMERS, CHAIRPERSON ATTEST: WILLIAM W. BURNS, EXECUTIVE DIRECTOR 1'Y COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION Memorandum DATE: October 30, 2009 TO: HRA Commission Members FROM: Julianne Beberg, Planning Assistant SUBJECT: Proposed 2010 HRA Commission Meeting Dates The following dates are for your review and approval of the proposed 2010 HRA Commission meeting dates. Jan. Feb. Mar. April May June July Aug. Sept. Oct. Nov. Dec. 7 4 4 1 6 3 1 5 2 7 4 2 MEMORANDUM FINANCE DEPARTMENT UK RICHARD D. PRIBYI, CITY OF FRIDLEY MI}Y FINANCEDIRECTOR TO: WILLIAM W. BURNS, EXECUTIVE DIRECTOR HRA FROM: RICHARD PRIBYL, FINANCE DIRECTOR SUBJECT: REDEMPTION OF GENERAL OBLIGATION TAX INCREMENT REVENUE REFUNDING BONDS, SERIES 2004B Date: October 30, 2009 Staff has been working with both Krass Monroe and Ehlers and Associate's in regards to the above named bonds. Staff had not anticipated this expense within the 2009 Budget but at this time is recommending to both the City Council and the HRA the full redemption of the bonds. The remaining balance after the August 1, 2009 payment was $1,720,000. As you may recall, TIF Districts 1, 2 and 3 have pledged increments for the repayment of this debt. The last of these three districts will be decertified as the end of this year. Since we have sufficient cash to call for a full redemption, we will be providing the City Council with a resolution to redeem these bonds as of February 1, 2010. The total cash available is in excess of $3,200,000 for the redemption of these bonds. Any excess cash remaining will be required to be returned to the County in accordance with State law for redistribution to the participating local governmental agencies in the ratio of the current tax capacity rates. INFORMATIONAL ITEM HRA MEETING OF NOVEMBER 512009 CITY OF FK DLEY Date: October 29, 2009 To: William Burns, City Manager From: Paul Bolin, Asst. Executive HRA Director Subiect: Northstar Update Lease Agreement/Plat: The Northstar Plat was filed at Anoka County earlier this month and signature pages for all lease and other agreements have been making their way around to the multiple signatories. Construction Update: Construction is nearly complete. A pre -final building review is to be conducted on Friday October 30 . 1 will accompany the Building Official on this inspection in order to provide pictures at your meeting next week. There was some concern over the delivery of the elevator cabs being delayed and unable to be installed and tested prior to opening. The cabs have now been delivered, installed and will be going through testing and inspection over the next week. We anticipate being able to use the elevators for the grand opening event on November 14th. Kick Off Event: Plans are in place for the kick off event. Rachel Harris, Bob Barnette, Steve Billings and your own Commissioner Holm have invested a great deal of time to make this an exciting event. Rachel Harris has prepared the following piece to promote the kick off event. Get Connected... Get new Northstar train! Join fellow community members at the exciting Northstar Rail Grand Opening on Saturday, November 14, from 8:30 a.m. —11:30 a.m. at 6100 Main Street. The event offers something for the train enthusiast, history buff, and bicyclist. Walk, bike, or drive to the train station. At the Grand Opening, residents, businesses and local officials will have the opportunity to celebrate the new rail service with entertainment provided by the Fridley City Band. Hear rousing tunes, sample refreshments from Bob's Produce, coffee from Dunn Bros., and get your face painted under the heated tent. The a sin I hog ram begins t 9.45 a.m. with our Mayor and other keynote speakers p 9 enthusiasm for this long- awaited celebration. train Get connected ... to a new east to west link in Fridley. Walk Main Street t star East R vernnel and learn about a new way for pedestrians to cros s from how ty Road. Visit the City of Fridley booth for a commemorative ivable learn es and Bike 'ke is working to enhance walk/bike connections. Tra nsit For Walk Twin Cities will share information dbb kegacks are available'at the train st ton. round commuting ease, bike lockers Discover the future of transportation in Fridley! Pre - boarding for ticketholders begins at 0 30a 2:15 p me There wi I be limited t ckets n route to downtown Minneapolis and returns available on event day on a first -come, first- served tht vending Metro Transit will answer questions about buying future tickets using the ticke Come see how the train station brings the so Counties Transit City Board, graciously acknowledges our event partner Anoka County Regional Rail Authority, Northstar Corridor Development Authority, Metro Transit, Allina Hospital Systems, Bob's Produce, Dunn Bros. and the Fridley City Band. Fridley, Minnesota. Get connected. www. ci.fridley.mn.us /fridleyconnects Fridley HRA Housing Program Summary Cover Page November 5, 2009 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 Documents\EIRA\HRA Agenda Items\2009\1\4ay 7, 2009\Housing Program Cover May.doc N C N ld N J 0 N c O d N �! N _ d Q v 0.0 4 C m p o �z i - a •rL �- N C G � u J C N c O v � � N C� O �i+ r 0 � V 0 C. O zac O O N E O CD � N L O T " 9.00 rL W V La 1 N O 0 C 0 0 0 0 0 0 1 1 3 "t 00, 000000 c 0 0 N w C � V � U. 3 = LL Im C LL =' 0 OL O 3 1C K 0 .0 J LL m R LL LLJtf..0 A J N J C �z, Im w .0 cm _j d Q 7 7 c J _ •� °—' 0? E E cD c G W {0 E aLL0U.0 V E0 0 0 o �i �co LL LL LL LL w LL = = = =w=O i =_ 22220["L20 M r O N O N MM LO La F d N d 3 w w c.i d O L c 0 CL is d s ZA 0 c 3 O L m c 0 lv C. O C. C 3 O cc O r C .aC O c N d O 13 O C m N N C O V Q C. eo r.. O m .n z I I P' 1 Loan Originations HRA Loans (incl. CFUF I HRA Deferred Loans Other Loans (non -HRA) Total Funding Sources Fridley HRA Loan Origination Report October 20, 2009 This Previous Month Months 2 10 This 1 Previous 2 11 Single Family Duplex Tri-Plex 4 to 9 Units 10 to 20 Units 20+ Units Total Tvoss of Improvements Interior Bathroom remodel Kitchen remodel 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 2 2 # of Projects 10 1 11 2 1 1 3 3 2 4 2 1 Since 11112009 12 1 13 Since 11112009 137,954.00 62,715.00 200,669.00 Since 1/1/2009 % of Total 11% 5% 0% 5% 16% 0% 0% 0% 0% 0% 16% 11% 21% 11% 0% 0% 5% 12 1 13 This Previous Month Months Fridley HRA $ 11,926.00 $ 126,028.00 $ MHFA FUF /CFUF $ - $ 62,715.00 $ Met Council $ - $ - $ CDBG/HOME $ - $ - $ CEE $ $ - $ Other $ - $ - $ Total $ 11,926.00 $ 188,743.00 $ Types of Units Improved* -some households receive more than 1 loan, so the # of loan may not equal # of units Improved This Previous Month Months Single Family Duplex Tri-Plex 4 to 9 Units 10 to 20 Units 20+ Units Total Tvoss of Improvements Interior Bathroom remodel Kitchen remodel 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 2 2 # of Projects 10 1 11 2 1 1 3 3 2 4 2 1 Since 11112009 12 1 13 Since 11112009 137,954.00 62,715.00 200,669.00 Since 1/1/2009 % of Total 11% 5% 0% 5% 16% 0% 0% 0% 0% 0% 16% 11% 21% 11% 0% 0% 5% 12 1 13 C) CD N 1 U) 4) V vI L U) i�. WOMEN T � G� O V E MOMEN UL W m 0 0 N O N L V Xu N C 'O d d E m La C o o d "T N .Q 0.0 Q N r d d E 5 C) o N Ln o Q N a L 000000a�000 C i� L` �, o Q sr �N-+ 2 -3U- ��Q(n01- Vokr FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY November 5, 2009 IE13 Pool SPECIAL NOTE: Scott Hickok has graciously agreed to staff the meeting on Thursday night. I am unable to attend due to the fact that I am taking the National Ski Patrol exam that night out at Wild Mountain. Unfortunately, the only night the exam is offered conflicts with the HRA meeting. My wife and I have spent 2 nights /week, for the past 16 weeks, attending the required Emergency Medicine courses needed to join the NSP at Wild Mountain. After the written and skills test on Thursday night we then move on to our "on hill" skills training on Saturdays from November 28th — February, at which time we will take another test and become eligible to join the NSP. Putting this in writing makes it seem like a lot of work and time for the privilege of participating in this volunteer position! 1. Anoka County HRA Karen Skepper reported to me that the County HRA has put on hold their request for an attorney's opinion on their ability to levy in City's operating their own HRA, due to the lawsuit filed by the City of East Bethel in mid- September. Karen did state that the County will not attempt to levy any City's with an HRA this year. As previously reported, the City of East Bethel created an HRA this past spring, and in an effort to prevent Anoka County HRA from operating in or collecting a levy from it's residents filed a suit to prevent collection of the County HRA levy in East Bethel. Their case is built around the legislation (MN Statute 383E.17) that created the Anoka County HRA, in particular, the sentence stating, "The county shall not exercise jurisdiction in any municipality where a municipal housing and redevelopment authority is established". The question is: does "shall not exercise jurisdiction" include /preclude the ability to levy? Staff will provide the most up to date information next Thursday night. 2. Select Senior Living — (Old Central and Mississippi) The following was passed on by Scott Hickok via e-mail: 1 just thought 1 would pass along that one of the finance (actual banking) people for Select Senior Living (Former Demello site) called to say that he had just finished securing all the financing necessary for the Select Senior Living Mounds View Project. He wanted me to know this because they are now turning their focus to the Fridley Project and its finance package. He indicated that at the time they Selected the Demello site, they did so because their first choice was the Columbia Arena site, however, they could make no headway with the CA landowner. He said that that has all changed since the Walker project proposal went south. Now the CA owner is very open to discussing a partial site sale and the final plat could be filed dividing the land as Council had agreed to in the first Plan. His point of calling was to inform me first that they have not gone away and he seemed very confident in his ability to fund a project. He just wasn't certain whether they would be pursuing the Demello site, or now possibly the CA site. 01 keep you posted as other advancements are made. M 3. Cub Foods Redevelopment While Triland Development has not made any formal land use applications for the redevelopment of the Cub Foods/McDonalds/Fridley Liquor site, planning staff has been barraged by calls from sign contractors & engineers working on the project. Additionally, Triland has scheduled a meeting with the City's Development Review Committee for Tuesday November P 4. Fridley Clinic — Unity Hospital Development After abandoning the Columbia Arena site in favor of the Unity Hospital site, land use applications have been filed and plans submitted to move the 60,000 square foot clinic forward. Construction will likely start this winter. 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 Tn STATE OF MINNESOTA COUNTY OF ANOKA City of East Bethel, a Minnesota municipal corporation, East Bethel Housing and Redevelopment Authority, a public body, corporate and politic, and Jill Teetzel, a resident and taxpayer of the City of East Bethel, Plaintiffs, VS. Anoka County Housing and Redevelopment Authority, a public body corporate and politic, and Maureen J. Devine, Division Manager, Anoka County Property Records & Taxation, Defendants. DISTRICT COURT TENTH JUDICIAL DISTRICT CASE TYPE: Other Civil COURT FILE NO. 02-CV-09-6679 AMENDED COMPLAINT COMES NOW PLAINTIFFS, CITY OF EAST BETHEL, EAST BETHEL HOUSING AND REDEVELOPMENT AUTHORITY, AND JILL TEETZEL, AND FOR THEIR COMPLAINT STATE AS FOLLOWS: 1. Plaintiff City of East Bethel ( "East Bethel ") is a Minnesota municipal corporation, duly organized and existing under the general laws of this state. 2. The City of East Bethel has established a Housing and Redevelopment Authority ( "EBHRA ') to operate within the City's boundaries pursuant to Minn. Stat., Ch. 469; see Exhibit E of Affidavit of Gerald M. Randall. 3. Jill Teetzel is a resident of the City of East Bethel and an owner of property in East Bethel; as such she is a taxpayer of East Bethel, and as a taxpayer she has a vested interest in the issues raised by this Complaint and the outcome of this litigation. 4. Anoka County has its own housing and redevelopment authority, the Anoka County Housing and Redevelopment Authority ( "ACHRA ') pursuant to Minn. Stat. § 383E.17, Subd. 1 and Anoka County Board of County Commissioners' Resolution # 94 -195; see Exhibits A and B of Affidavit of Gerald M. Randall. 5. Defendant Maureen* J. Devine is the Division Manager of Anoka County Property Records & Taxation and as such is the department head responsible for discharging the statutory duties required of the auditor in Anoka County pursuant to Minn. Stat. §§ 383E.03 to 383E.06 and Anoka County Board of County Commissioners' Resolutions #89 -71 and #89 -72; see Exhibits O, P and Q of Affidavit of Gerald M. Randall. 6. Minn. Stat. § 383E.17, Subd. 2 provides specifically that "[t]he county shall not exercise jurisdiction in any municipality where a municipal housing and redevelopment authority is established." 7. Defendant ACHRA has set a preliminary levy for tax year 2010, and will, unless restrained by the Court, certify the levy to Maureen J. Devine, as division manager of Anoka County Property Records & Taxation, and thereby impose a levy for a housing and redevelopment tax on all real property and taxpayers in the City of East Bethel, in contravention of the provision of Minn. Stat. § 353E.17, Subd. 2 that the County shall not exercise jurisdiction in any municipality where a municipal housing and redevelopment authority is established. See Exhibits R and S of Affidavit of Gerald M. Randall. 8. The estimated total revenue from the tax that defendant ACHRA .intends to levy and impose is $2,000,857.00, of which $201,339.00 will be levied and imposed on properties and taxpayers in the City of East Bethel. See Exhibit R of Affidavit of Gerald M. Randall. 9. The tax that defendant ACHRA intends to levy and impose will be certified to the County's Property Tax and Records Division no later than Tuesday September 15, 2009, less than five days from the commencement of this action. 10. The tax that defendant ACHRA intends to levy and impose will appear on the parcel specific tax statements to be delivered by mail to all taxpayers in East Bethel prior to November 24, 2009. 11. If defendant ACHRA is permitted to levy the tax, plaintiff East Bethel and its taxpayers will suffer irreparable damage and be without an adequate remedy at law. WHEREFORE, plaintiff East Bethel demands that the Court: A. Temporary Restraining Order: Issue (i) a Temporary Restraining Order ( "TRO ") enjoining defendant ACHRA from certifying the levy and imposing the housing and redevelopment authority tax described in this Complaint and (ii) a TRO enjoining Maureen J. Devine from accepting a certification of the levy, calculating the tax rate necessary to raise the required amount of the tax, or taking any further steps to collect the tax until such time as plaintiff the City of East Bethel's motion for a temporary injunction regarding this matter can be heard. B. Declaratory Judgment: Determine the rights and obligations of the parties in regard to this matter under the Declaratory Judgment Act, Minn. Stat. Ch. 555. 2 Dated: October 12, 2009 Randall and Goodrich, P.L.C. Gerald M. Randall ( #89424) Attorneys for City of East Bethel 2140 Fourth Avenue North Anoka, MN 55303 (763) 421 -5424 ACKNOWLEDGMENT The undersigned hereby acknowledges that sanctions may be imposed under Minn. Stat. §549.211 upon attorneys, law firms or parties that violate subdivision 2 of §549.211 or are. responsible for the violation. Dated: October 12, 2009 Randall and Goodrich, P.L.C. Gerald M. Randall, #89424 STATE OF MINNESOTA COUNTY OF ANOKA City of East Bethel, a Minnesota municipal corporation, and East Bethel Housing and Redevelopment Authority, a public body, corporate and politic, Plaintiffs, VS. Anoka County Housing and Redevelopment Authority, a public body corporate and politic; and Maureen J. Devine, Division Manager, Anoka County Property Records & Taxation, Defendants. DISTRICT COURT TENTH JUDICIAL DISTRICT CASE TYPE: INJUNCTIVE RELIEF COURT FILE NO. 02 -CV -09 -6679 COMPLAINT COMES NOW PLAINTIFFS, CITY OF EAST BETHEL AND EAST BETHEL HOUSING AND REDEVELOPMENT AUTHORITY, AND FOR THEIR COMPLAINT STATE AS FOLLOWS: 1. Plaintiff City of East Bethel ( 'East Bethel') is a Minnesota municipal corporation, duly organized and existing'under the general laws of this state. 2. East. Bethel has established a Housing and Redevelopment Authority ( "EBHRA ") to operate within the city's boundaries pursuant to Minn. Stat., Ch. 469; see Exhibit E of Affidavit of Gerald M. Randall. 3. Anoka County has its own housing and redevelopment authority, the Anoka County Housing and Redevelopment Authority ( "ACHRA ") pursuant to Minn. Stat. § 383E.17, Subd. 1 and Anoka County Board of County Commissioners' Resolution # 94 -195; see Exhibits A and B of Affidavit of Gerald M. Randall. 4. Defendant Maureen J. Devine is' the Division Manager of Anoka County Property Records & Taxation and as such is the department head responsible for discharging the statutory duties required of the auditor in Anoka County pursuant to Minn. Stat. §§ 383E.03 to 383E.06 and Anoka County Board of County Commissioners' Resolutions #89 -71 and #89 -72; see Exhibits O, P and Q of Affidavit of Gerald M. Randall. 5. Minn. Stat. § 383E.17, Subd. 2 provides specifically that "[t]he county shall not exercise jurisdiction in any municipality where a municipal housing and redevelopment authority is established." 6. Defendant ACHRA has set a preliminary levy for tax year 2010, and will, unless restrained by the Court, certify the levy to Maureen J. Devine, as division manager of Anoka County Property Records & Taxation, and thereby impose a levy for a housing and redevelopment tax on all real property and taxpayers in East Bethel, in contravention of the provision of Minn. Stat. § 353E.17, Subd. 2 that the county shall not exercise jurisdiction in any municipality where a municipal housing and redevelopment authority is established. See Exhibits R and S of Affidavit of Gerald M. Randall. 7. The estimated total revenue from the tax that defendant ACHRA intends to levy and impose is $2,000,857.00, of which $201,339.00 will be levied and imposed on properties and taxpayers in East Bethel. See Exhibit R of Affidavit of Gerald M. Randall. 8. The tax that defendant ACHRA intends to levy and impose will be certified to the County's Property Tax and Records Division no later thanluesday Septemberl5, 2009, less than five days from the commencement of this action. 9. The tax that defendant ACHRA intends to levy and impose will appear on the parcel specific tax statements to be provided to all taxpayers in East Bethel prior to November24, 2009. 10. If defendant ACHRA is permitted to levy the tax, plaintiff East Bethel and its taxpayers will suffer irreparable damage and be without an adequate remedy at law. WHEREFORE, plaintiff East Bethel demands: that the Court: A. Temporary Restraining. ", Order: Issue (i) : a Temporary Restraining Order ( "TRO ") enjoining defendant ACHRA from certifying the levy and imposing the housing and redevelopment authority tax described in this Complaint and (ii) a TRO enjoining Maureen J. Devine from accepting -a certification of the levy, calculating the tax rate necessary to raise the required amount of the tax, or taking any further steps to collect the tax until such time as plaintiff East Bethel's motion for a temporary injunction regarding this matter can be heard. B. Declaratory Judgment Determine the rights and obligations of the parties in regard to this matter under the Declaratory Judgment Act, Minn. Stat. Ch. 555. Dated: September 11, 2009 2 Randall and Goodrich, P.L.C. Gerald M. Randall ( #89424) Attorneys for City of East Bethel 2140 Fourth Avenue North Anoka, MN 55303 (763) 421 -5424 STATE OF MINNESOTA COUNTY OF ANOKA City of East Bethel, a Minnesota municipal corporation, East Bethel Housing and Redevelopment Authority, a public body, corporate and politic, and Jill Teetzel, a resident and taxpayer of the City of East Bethel, Plaintiffs, VS. DISTRICT COURT TENTH JUDICIAL DISTRICT CASE TYPE: INJUNCTIVE RELIEF COURT FILE NO. 02 -CV -09 -6679 MEMORANDUM OF LAW IN SUPPORT OF"MOTION FOR WRIT OF TEMPORARY INJUNCTION Anoka County Housing and Redevelopment. Authority, a public body corporate and politic, and Maureen J. Devine, Division Manager, Anoka County Property Records & Taxation; Defendants. Plaintiff City of East Bethel (`Bast Bethel ") is a statutory city under the laws of the State of Minnesota and is located in Anoka County, Minnesota. Plaintiff East Bethel Housing and Redevelopment Authority ( "EBHRA ") is the housing and redevelopment authority for East Bethel and is a special taxing district under the laws of the State of Minnesota. Plaintiff Jill Teetzel ( "Teetzel ") owns real property in East Bethel and is a resident and taxpayer of East Bethel; she is a party Plaintiff herein both personally and for all other interested taxpayers in the County of Anoka and East Bethel. Plaintiff EBHRA and defendant ACHRA are organized as separate and distinct public corporations in Anoka County. Plaintiff EBHRA was established in 2008 pursuant to Minn. Stat., Ch. 469. See Affidavit of Douglas Sell ( "Sell Affidavit'), Exhibit A. Defendant ACHRA came into existence in 1994 pursuant to Minn. Stats. Sec. 383E.17 and Anoka County Board of 1 Commissioners' Resolution #94 -195. See Second Affidavit of Gerald M. Randall ( "Randall Affidavit "), Exhibits E and G, page 2 and 3, together with Sell Affidavit, Exhibit D. Defendant ACHRA now intends to levy a housing and redevelopment authority tax upon real property in East Bethel. See Sell Affidavit, Exhibit G. For their part, Plaintiffs oppose the imposition of such a tax and now move for a Temporary Injunction enjoining ACHRA from levying the tax. Further, Plaintiffs seek a Declaratory Judgment of the rights and obligations of the parties under Minn. Stats. Sec. 383.E.17 See Randall Affidavit, Exhibit E) pursuant to Minn. Stats. Ch. 555. Minn. Stats. Sec. 383E.17 create[s] in the county of Anoka a public body corporate and politic, to be known as the Anoka County Housing and Redevelopment Authority, having all of the powers and duties of a housing and :redevelopment authority under the provisions of the Municipal Housing and Redevelopment Act. Minn. Stats. Sec. 383E.17, Subd. 1. However, [t]his section [I. not limit or restrict any existing housing and redevelopment authori ty orprevent a munid ahty from creatm an authori [Further,] [t]he county shall not exercise jurisdiction in any municipality where a municipal housing and redevelopment authority is established. Minn. Stats. Sec. 383E.17, Subd. 2, emphasis added. So, pursuant to Subd. 2, ACHRA is prohibited from "exercise[ing] jurisdiction in any municipality where a municipal [HRA] is established." Nevertheless, ACHRA is attempting to "exercise jurisdiction" within Plaintiff East Bethel's boundaries by levying a housing and redevelopment tax on property in East Bethel, even though East Bethel has its own housing and 2 S redevelopment authority. Accordingly, Plaintiffs have moved for a Temporary Injunction enjoining ACHRA from levying this tax in East Bethel. Minn. R. Civ. P. 65.02 governs the grant of Temporary Injunctions and provides that: A temporary injunction may be granted if by affidavit, deposition testimony, or oral testimony in court, it appears that sufficient grounds exist therefor. Rule 65.01 (b). As a preliminary matter, the decision of whether to grant a motion for a Temporary Injunction lies solely within the discretion of the trial court. Carl Bolander & Sons Co. v. City of Minneapolis, 502 N.W.2d 203, 209 (Minn. 1993)., In determining whether sufficient grounds exist that justify granting a. Temporary Injunction, the Court. must. consider: 1. The nature and background of the. relationship between the parties preexisting the dispute giving rise to the request for relief. 2. The harm to be suffered by plaintiff if the :temporary restraint is denied as compared to that inflicted on defendant if the injunction: issues pending trial. 3. The likelihood that one parry or the other will prevail on the merits when the factsituation is viewed in light of established precedents fixing the limits of 'equitable relief. 4. The aspects of the fact situation, if any, which permit or require consideration of public policy expressed in the statutes, State and Federal. 5. The administrative burdens involved in judicial supervision and enforcement of the temporary decree. Dahlberg Brothers, Inc. v. Ford Motor Company, 137 N.W.2d 314, 321 — 322 (Minn. 1965), emphasis added. Each of these factors will now be considered in turn: C 1. Relationship Between the Parties: The relationship between Plaintiff East Bethel and EBHRA and Defendant ACHRA has been somewhat strained over the course of the past year, especially in regard to the issue of ACHRA levying a housing and redevelopment tax in East Bethel. It is reasonable to assume that East Bethel created its own housing and redevelopment authority with the expectation that it then would take on the housing and redevelopment duties of such an authority in East Bethel. In fact, the East Bethel City Administrator gave notice to ACHRA Executive Director of the establishment of EBHRA and that it would levy its own housing and redevelopment tax in the East Bethel special taxing district. See Sell Affidavit, Exhibit C. ACHRA never `gave:East Bethel or EBHRA a formal acknowledgement of the establishment of EBHRA or notice . that it ( ACHRA) intended to continue levying in East Bethel until shortly before the proposed levy in dispute was delivered to Defendant Devine sometime prior to September 15, 2009. 2. Harm: The harm that Plaintiffs will suffer unless a Temporary Injunction is issued is obvious - the East Bethel taxpayers will be exposed to unlawful taxation at the hands of DefendantACHRA! City Administrator and EBHRA Executive Director Douglas Sell states in his Affidavit that the proposed levy and notice to .be sent to the East Bethel taxpayers in connection therewith will cause an undue burden on East Bethel and EBHRA and adversely impact East Bethel's Rockville Township v Lang, 367 N.W. Zd 200, 205 (Minn. ApP• ability to govern. See 1986) for authority that knowing violation of duly promulgated laws can be irreparable harm to a governmental unit. 3. Likelihood of Prevailing on the Merits: Defendant ACHRA is clearly violating the limitations on its authority set forth in Minn. Stats. Sec. 383E.17, subd. 2. More specifically, Sec. 383E.17, subd. 2 prohibits ACHRA from exercising jurisdiction in East Bethel because M J East Bethel has its own housing and redevelopment authority. Legislative acts should be construed according to the plain meaning of the language adopted. See Randall Affidavit, Exhibit G, page 3. For these reasons, Plaintiffs are likely to prevail on the merits in regard to their motion for a Temporary Injunction. 4. Public Policy: The Legislature has clearly expressed its intent in Minn. Stats. 383E.17 that defendant ACHRA "shall not exercise jurisdiction in any municipality where a municipal housing and redevelopment authority is established." Sec. 383E.17, subd. 2, emphasis added. As such, ACHRA's attempt to impose a housing and .redevelopment tax on the taxpayers of East Bethel contravenes the Legislature's intent " expressed in Sec. 383E.17, subd. 2. Again, legislative acts should .be construed according to the plain meaning of the language adopted. 5. Administrative Burdens: The administrative burdens placed on the judiciary in supervising the Temporary Injunction will be minimal for three reasons. First, any Temporary Injunction if issued by the Court will be largely self - executing, and any violations can be addressed using the Court's contempt; powers and procedures which are already in place. Second, as a governmental entity, Defendant ACHRA presumably respects the judiciary's authority to issue -- and will obey — the Temporary Injunction. Third, Plaintiffs definitely respect the authority of the judiciary. CONCLUSION Minn. Stats. Sec. 383E.17, subd. 2 prohibits Defendant ACHRA from "exercis[ing] jurisdiction in any municipality where a municipal housing and redevelopment authority is established." Nevertheless, in violation of subd. 2, ACHRA intends to levy a housing and redevelopment tax in East Bethel. Unless the Court issues a Temporary Injunction enjoining such activity, East Bethel, EBHRA, Teetzel and the East Bethel taxpayers will suffer immediate 5 and irreparable harm. Accordingly, the Court must grant Plaintiffs' motion for a Temporary Injunction. Dated: October 19, 2009 n Randall and Goodrich, P.L.C. Gerald M. Randall ( #89424) Attorneys for City of East Bethel 2140 Fourth Avenue North Anoka, MN 55303 (763) 421 -5424 383E.17, 2009 Minnesota Statutes 2009 Minnesota Statutes 383E.17 HOUSING AND REDEVELOPMENT. Page 1 of 1 Subdivision 1. Housing and redevelopment authority. There is created in the county of Anoka a public body corporate and politic, to be known as the Anoka County Housing and Redevelopment Authority, having all of the powers and duties of a housing and redevelopment authority under the provisions of the Municipal Housing and Redevelopment Act, Minnesota Statutes 1986, sections 462.411 to 462.711. For the purposes of applying the provisions of the Municipal Housing and Redevelopment Act to Anoka County, the county has all of the powers and duties of a municipality, the county board has all of the powers and duties of a governing body, the chair of the county board has all of the powers and duties of a mayor, and the area of operation includes the area within the territorial boundaries of the county. Subd. 2. Municipal authorities. This section shall not limit or restrict any existing housing and redevelopment authority or prevent a municipality from creating an authority. The county shall not exercise jurisdiction in any municipality where a municipal housing and redevelopment authority is established. If a municipal housing and redevelopment authority requests the Anoka County Housing and Redevelopment Authority to handle the housing duties of the municipal authority, the Anoka County Housing and Redevelopment Authority shall act and have exclusive jurisdiction for housing in the municipality. A transfer of duties relating to housing shall not transfer any duties relating to redevelopment. History: 1978 c 464 s 1; 2005 c 28 s 1 htt„Q• / /www.revisor.mn.izov /statutes / ?id= 383E.17 10/29/2009