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
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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
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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
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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