HRA 01/08/2009 - 29542�
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CITY OF FRIDLEY
�i0[JSING AND 1tE1�EVEi,�PM�NT AUTHORITY COMMISSION
JANUARY 8, 2008
CALL TO ORDER:
Chairperson Commers called the Housing and Redevelopment Authority to order at 7:06 p.m.
ROLL CALL:
MEMBERS PRESENT: Pat Gabel
William Holm
Steve Billings
John Meyer
Larry Commers
OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director
Gay Cerney, HRA Attorney
Rod Krass, Attorney
Mike Jeziorski, Accountant
William Burns, City Manager
ACTION ITEMS:
1. Approval of Expenditures
MOTION by Commissioner Holm to approve the expenditures as presented. Seconded by
Commissioner Billings.
UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED.
2. Approval of December 4, 2008 Meeting Minutes
MOTION by Commissioner Gabel to approve the minutes as presented. Seconded by
Commissioner Billings.
UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED.
3. Approval of Final 2009 Budget
Mike Jeziorski, Accountant, said that the 2009 Budget was reviewed at the December meeting and
only one revision has been made. The Building and Land Purchases will increase from $700,000 to
$1,400,000. The final budget reflects the most current appraisals and purchase agreements for the
Gateway Northeast properties.
Chairperson Commers asked why there was a change.
Paul Bolin, HRA Executive Assistant Director, said that originally stafF had thought HRA would
close on two of the properties prior to the end of the year and that did not happen so the numbers
were adjusted. The $1.4M is the best estimate of what it will take to purchase the properties HRA is
pursuing.
MOTION by Commissioner Billings to approve the Fina12009 Budget as presented. Seconded by
Commissioner Gabel.
UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED.
4. Approval of Contract Extension with CEE for Administration of Loan Programs
Paul Bolin, HRA Executive Assistant Director, said the HRA has contracted with the Center for
Energy and Environment (CEE) for loan program administration since 1996. Program
Administration includes: marketing the program, processing loan applications, determining
eligibility, and customizing loans to individual needs. CEE also provides residents with technical
assistance on topics such as remodeling, energy conservation, and indoor air quality. The CEE-
HRA partnership allows residents to access other loan dollars (MHFA and Met Council). There
will be no changes to the current fee structure. Staff and residents have been pleased with CEE and
Staff recommends that the HRA approve the contract extension through December 31, 2009.
MOTION by Commissioner Holm to approve the contract extension with CEE for administration
of loan programs. Seconded by Commissioner Gabel.
UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
5. Approval of Purchase Agreement (s) / Gateway Northeast Update
Mr. Bolin said that the Alano Society property was closed on, on December 18t" and the Tae Kwan
Do property offer was made but staff is still waiting for a formal response to the offer.
Commissioner Gabel asked how Mr. Wilson is paid.
Mr. Bolin said he is paid an hourly rate.
Commissioner Gabel suggested that HRA doesn't ask Mr. Wilson to spend so much time on the
Tae Kwan Do purchase because it isn't going anywhere.
Mr. Bolin said that the MPCA has determined that the Sinclair property has no additional
investigation or clean up required at this time. Closing will take place on January 26th. The Sikh
Society has now decided they need to have further discussions amongst themselves to move
forward. The appraisal on the 5905 University property is complete and Staff recommends the
HRA authorize an offer to purchase for the appraised value, inclusive of relocation benefits.
MOTION by Commissioner Billings to approve the purchase agreement at 5905 University
Avenue. Seconded by Commissioner Meyer.
UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED.
Commissioner Billings disagreed with the value of the property at the former McDonalds building
location as the estimate is too high. He understands the appraiser's logic but doesn't think the
property is worth $450,000. He will not be voting in favor of that project if the estimate comes in at
that price.
Commissioner Holm asked if the HRA should withdraw the purchase offer.
Mr. Bolin said that the appraisal for the Sikh Society was done in 2007. The Sikh Society is
considering getting another appraisal. Comments from previous meetings were considered and an
offer of about $20,000 lower than the appraisal was presented.
Chairperson Commers said that HRA can revisit this at a later date once the Sikh Society gets a
new appraisal.
William Burns, City Manager, asked if HRA should get another appraisal.
Mr. Bolin said another appraisal could be done but there is an expense associated with appraisals,
about $3,500.
Commissioner Meyer thought it may be worth getting a new appraisal.
Commissioner Holm recalled that the last time HRA asked for a second appraisal the value went
up.
Commissioner Billings said it would be best to see what the Sikh Society comes up with and
address this at the next meeting.
Chairperson Commers asked if the easement problems have been worked out.
Mr. Bolin answered no. There is enough city street frontage road but there are some things that
need to be worked out between Sikh Society and the day care center.
INFORMATIONAL ITEMS:
1. Northstar Rail Station Update
Mr. Bolin updated the construction progress and said that bid packets were made available mid-
December and the opening of the bidding will take �place on January 27�'. Construction will start
mid-February. At the HRA Meeting on February 5 HRA can begin planning for developmentl
redevelopment around the station site.
2. Housing Loan Program Update
Paul Bolin, HRA Assistant Executive Director, said that no loans were closed in December and
year to date 181oans were closed. There were also no remodel visits in December and year to date
there were 16 remodel visits total.
RECESS MEETING
MOTION by Commissioner Holm to Recess the HRA Meeting. Seconded by Commissioner
Gabel.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MEETING RECESSED AT 7:50 P.M.
MOTION by Commissioner Holm to reconvene the meeting. Seconded by Commissioner Gabel.
UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED AND THE MEETING RECONVENED AT 8:16
P.M.
Chairperson Commers said that the meeting was recessed for the purpose to consider purchasing
11 acres of land to be used for the construction of the Fridley Rail Station.
MOTION by Commissioner Gabel to approve the resolution to purchase the property. Seconded
by Commissioner Holm.
UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED.
William Burns, City Manager, asked what the purchase price is for the property.
Chairperson Commers said that there is some confusion on the price because of the different
contributions involved. The total settlement is $4.OM with contributions being received from other
parties. A lot of people including the Mayor, City Council and HRA members have been working
on this for a long time and deserve a lot of credit for this accomplishment. This was a complex
transaction and has finally come to fruition. This will be a tremendous addition to the City of
Fridley.
ADJOURNMENT:
MOTION by Commissioner Meyer to adjourn. Seconded by Commissioner Gabel.
UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 8:25 P.M.
Respectfully Submitted,
. U`
Krista Monsrud
Recording Secretary
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CITY OF FRIDLEY
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HOUSING & REDEVELOPMENT AUTHORITY MEETING
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