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HRA 09/03/2009 - 29547CITY OF �RIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION SEPTEMBER 3, 2009 CALL TO ORDER: Chairperson Pro Tem Gabel called the HRA Special Meeting to order at 7:04 p.m. ROLL CALL: MEMBERS PRESENT: Pat Gabel John Meyer William Holm MEMBER5 ABSENT: Larry Commers NONMEMBERS PRESENT: Paul Bolin, HRA Assista.nt Executive Director Scott Hickok, Community Development Director Jim Casserly, Development Consultant ACTION ITEMS: 1. Approval of Ezpenditures NONE PRESENTED 2. Approval of August 6, 2009, Meeting Minutes MOTION by Commissioner Holm to approve the minutes as presented. Seconded by Commissioner Meyer. Chairperson Pro Tem Gabel asked for a correction on page 7, second paragraph, second line, add the word "month" after next. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE NIINUTES APPROVED A5 AMENDED. 3. Approval of 2009 Tag Levy for Taxes Payable in 2010 Paul Bolin, HRA Assistant Executive Director, said that the MN Statutes authorize HRA's to levy properties within their community to support the housing and redevelopment efforts. This levy is eyual to .0185% of ta�cable market value. The 2010 levy will allow HRA to collect $498,000, Mr. Bolin said that the impact on ta�cpayer for a$150,000 home would be $27.75 and a$1.0 million commercial property would be $185.00. Staff recommends approval of the resolution consenting to the HRA Tax Levy. Approval would provide HRA the ability to fund ongoing and future redevelopment efForts. It would also provide the ability to meet housing needs (address foreclosure issue). The levy will be certified and delivered to the County on September 15, 2009. City Council will act on this item September 14, 2009. MOTION by Commissioner Holm to approve the 2009 Tax Levy for Taxes Payable in 2010 as presented. Seconded by Commissioner Meyer. Chairperson Pro Tem Gabel asked about the value of the lots and if the City Assessor mentioned anything about the value of the properties in Fridley. Paul Bolin, HRA Assistant Executive Director, said that he has not discussed anything recently with the City Assessor. Comparing the levy amounts that are being received in 2010 versus what was projected for 2009, the amounts are a few thousand dollars less which shows there has been a decline in the city wide market value. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Approval of TIF District #20 — Columbus Arena Paul Bolin, HRA Assistant Executive Director, said that the developer has asked that the HRA postpone taking any action on this item until October 1�`. The developer sent a letter stating: "We continue to work on all the various components of our proposed redevelopment of the Columbia Arena site along University Ave. We find ourselves in a position at present where we need to request that our application review be continued from this Sept 3rd meeting to the October HRA meeting. We will continue to update you as to our pr.ogress." MOTION by Commissioner Meyer to table this item until the October 1, 2009 meeting. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 5. Approval of Northstar Ground Lease Paul Bolin, HRA Assistant Executive Director, said the ground lease is ultimately between the HRA and Metropolitan Council. Many players are involved and other agreements are interwoven between ACRRA, CTIB, Metro Transit, MnDOT and BNSF. The lease agreement simply spells out details of Metro Transit's use of HRA property for Northstar Rail parking and access to the platForm. Staff recommends HRA hold a public hearing on this item tonight and approve the agreement as presented. Commissioner Meyer asked if the Public Hearing was publicized. Mr. Bolin answered yes, the statutory requirements for the public hearing have been met and were posted August 21 in the Minneapolis Star Tribune. The information needs to be published one time, no more than 30 days before and no less than 10 days before the hearing is held. Chairperson Pro Tem Gabel asked about the land and clarified that the HRA is owner of the land. Jim Casserly, Development Consultant, stated that HRA was owner of the land and explained the modifications to the agreement related to liability. The Metropolita.n Council met some compromised language and some language was prepared which was used; some of the language they had proposed and modified some sections of the document. If the property had been sold this discussion wouldn't be happening. A 200 year lease is starting and HRA is not in the business of operating the business. Mr. Casserly said that there is a simple way to address this in that the indemnification doesn't waive any rights under our statutes. They accepted the language and that was the only issue that remained. The reason for entering into this lease arrangement is to allow the HRA to have a little better control over the property. Mr. Casserly said that HRA was very careful as to what was being leased and has no rights below or above the surface area. Over time HRA will probably want to redevelop that site as portions are available. There is even an agreement to substitute storm water management and to share costs going forward. Mr. Casserly said that what HRA is committed to is to keep the same number of parking stalls, but the parking could go vertical. HRA's purpose is to try to encourage development in an area of town that is currently under utilized. The key is not to come back in four years and ask for permission to develop the area. Everyone involved with this project would like to see the area developed. Chairperson Pro Tem Gabel said that HRA appreciated all the work that has went into this lease. It is a lot of work but it's exciting. MOTION by Commissioner Holm to approve the Northstar Ground Lease. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 6. Approval of Sign Easement/Agreement with Fairview Clinics Scott Hickok, Community Development Director, said that Fairview and Columbia Park have merged, converting all clinics to Fairview. Fairview is proposing to put a sign on the parking lot they lease from HRA. Fairview has offered to erect a sign that would serve both their needs and the City's (electronic readerboard). Staff recommends approval of the resolution authorizing agreement permitting the construction and operation of the sign in the proposed location. Commissioner Meyer asked what would happen to the police sign that is on the existing sign and how important that sign is. Mr. Hickok said that it is important to have a police indicator out there and staff will work with the sign contractor to keep a sign out there. Commissioner Meyer asked about the electrical charges and who would pay for that as time goes on. Mr. Hickok said that Fairview would pay for installment; maintenance etc. and the city can change the messages as they would like. Maintenance and other costs are born by Fairview. Chairperson Pro Tem Gabel asked what would happen to the sign if the clinic moved to a different location. Mr. Hickok said that the agreement was written so that it would not eliminate future tenants from using the sign. Fairview plans to be here for a long time but the future user of the building could use the sign. The new tenant would put their name on the sign but recognize the other provisions in the contract. Chairperson Pro Tem Gabel said that this is a great opportunity for Fridley. The community billboard will be better utilized with the electronic technology. MOTION by Commissioner Holm to approve the resolution authorizing the execution and delivery of parking and sign easement agreement by and between the HRA and for the City of Fridley and Fairview Fridley Clinic. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOU5LY MOTION by Commissioner Holm to approve the parking and sign easement agreement between HRA and the Fridley Fairview Clinic. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAII2PERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOU5LY 7. Continuation of Discussion on Northstar Transit TIF District MOTION by Commissioner Holm to remove the discussion of the Northstar Transit TIF District from the table. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIItPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY Paul Bolin, HRA Assistant Executive Director, said that the 2007 and 2008 Legislative Sessions gave the City the ability to create a special TIF district to fund public improvements around the Northstar Station area. HRA discussed district creation in June but current economic conditions cloud the timing of district creation. This item was tabled and Staff was asked to bring item back for discussion. JLT has no immediate plans for development. Mr. Bolin said that staff recommends to keep this item tabled for a few more months. Staff has a meeting coming up the middle of this month with the group that owns the Cub Foods site and they have talked in the past about redeveloping this site. Sta.ff does not see an immediate need at this point to go forward with this item. Commissioner Holm said that he was the one who asked for this to be tabled because he was concerned a developer would come in before a TIF District was created. Currently this is not an issue and he recommended to put this back on the table. Commissioner Meyer said that HRA doesn't want something to happen on that site before a TIF District is created. He asked what was in place to prevent this from happening. Jim Casserly, Development Consultant, said that it's not the TIF District that imposes restrictions; restrictions are voluntary that a property owner/developer would have if they were looking for assistance from the district itself. A number of parcels can be put up in a TIF District because it would impact a much broader area. This particular parcel is extremely significant to generate revenues with public improvements. Mr. Casserly said that what we would like to see is a more intense development of that parcel. A problem a developer would have with that parcel is to create density with parking deck construction cost assistance. If you want more density you have to overcome some of the parking costs. If anyone is looking for that type of assistance, we will be working with them for a long time. If they don't need assistance, they will be working with the city for permits etc. Mr. Casserly said that so much work has been done in this area, a tax increment district can be put together in 60 days because nothing needs to be qualified. The district can be created by statute. Commissioner Meyer said that if a Walmart moved into that space it would be detrimental to our activities. He thought a TIF District should be created to have some control of what is going on in that area. Mr. Casserly said that unfortunately it is City Council's job to create the land use. If an owner of the land wishes to have intense usage of the land they would contact the HRA. HRA has control of the land use in a voluntary way through a development agreement that would accompany any assistance. Scott Hickok, Community Development Director, reminded HRA that there is a benefit of being involved, a big box is not what is desired in that space, an intensified use has a value impact. Retail, office and residential has impact as a developer. The TIF Financing may help a developer put parking on the site that they would not normally do themselves. There are geat benefits with TIF for a developer. There are certain risks in not having control of what happens on that property. MOTION by Commissioner Holm to table the discussion of the Northstar Transit TIF District. 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 Assista.nt Executive Director, said that the Fridley HRA Loan Program closed one RLF loan in August making a year to date total of eight RLF loans and two other loans. The Remodeling Advisor Visits for the month of August was one making a total of 12 year to date. NONAGENDA UPDATE: Paul Bolin, HRA Assistant Executive Director, said that staff has discussed the possibility of doing a home improvement demo program similar to what Coon Rapids has done. The City would find a home under $100,000 that has been through the foreclosure process that is structurally sound but needs work done. One of the first homes to do would be a rambler. Mr. Bolin said that the City would work on proposals from remodelers who have done work in similar homes and select the top builder to work with them to improve the home. An open house would be held before the project starts and then throughout the process more open houses would be held so people could see the progress. Lastly the home would be staged for sale. Mr. Bolin sa.id that this program would take care of foreclosed homes cunently sitting vacant and would be a way for the City to demonstrate to residents what can be done to update the homes in Fridley. Another goal of this program would be to promote how inexpensive some of these upgrades can be. This will not be a long term project. Information will be brought to the October meeting for some formal action. The progam basically pays for itself. ADJOURNMENT: MOTION by Commissioner Meyer to Adjourn. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLAR,ED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:05 P.M. Respectfully Submitted, �11���1�2��1�7/��� Krista Monsrud, Recording Secretary � . CITY OF FRIDLEY SIGN-IN SHEET HOUSING & REDEVELOPMENT AUTHORITY MEETING � —� Name and Address Agenda Item of Interest