HRA 01/07/2010 - 6247January 7, 2010
HRA Meeting
Regular Meeting Agenda
7.30 p.m.
City Hall, Council Chambers
Call to order
Roll call.
Action Items
1. Approval of expenditures
2. Approval of December 3, 2009 Meeting Minutes
3. Approval of Preliminary 2010 Budget
Informational Items
1. Home Improvement Demonstration Program
2. Housing Loan Program Update
Adjournment
C:\Documents and Settings \bebergj \Local Settings \Temporary Internet Files\ Content .Outlook \VWCEOPO4 \January7 -2010 Agenda
Outline.docC: \Documents and Settings \bebergj \Local Settings \Temporary Internet Files \Content.Outlook \VWCEOPO4 \January7 -2010
Agenda Outline.doc
CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION
DECEMBER 3, 2009
CALL TO ORDER:
Chairperson Commers called the HRA Meeting to order at 7:40 p.m.
ROLL CALL:
MEMBERS PRESENT:
MEMBERS ABSENT:
NONMEMBERS PRESENT:
ACTION ITEMS:
1. Approval of Expenditures
Larry Commers
Pat Gabel
William Holm
John Meyer
Paul Bolin, HRA Assistant Executive Director
Jim Casserly, Development Consultant
MOTION by Commissioner Holm to approve the expenditures as presented. Seconded by
Commissioner Gabel.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY
2. Approval of November 5, 2009, Meeting Minutes
MOTION by Commissioner Holm to approve the minutes as presented. Seconded by
Commissioner Gabel.
Commissioner Gabel asked for the language to be cleaned up on page three where it talks about
the contractor being approved by MnDOT.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MINUTES APPROVED AS AMENDED.
3. Approval of Preliminary 2010 Budget
MOTION by Commissioner Holm to table the Preliminary 2010 Budget until the January 2010
meeting. Seconded by Commissioner Gabel.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY
4. Approval of Resolution Authorizing Home Improvement Demonstration Program
Paul Bolin, HRA Assistant Executive Director, said that in this program Staff will work with the
CD Director/C130 and CEE to identify a home (rambler) to purchase that is vacant, in a visible
location, structurally sound, priced correctly (under $130,000) and in need of repairs /updating
that will not require excessive investment.
Mr. Bolin said that a remodeling contractor would be selected through a formal process.
Contractors would provide their qualifications, ideas and costs. A real estate broker will be
selected after soliciting statements of qualifications /interest from area realtors. Then a pre -
remodel open house and kick -off event held.
Mr. Bolin said that as the remodeling work moves forward, open houses will be held after key
upgrades are completed and after completion when the home is listed for sale. After sale, staff
and HRA will evaluate the market and determine if another home should be purchased and
remodeled.
Mr. Bolin said that staff recommends HRA adopt a resolution authorizing staff to move forward
with the home improvement demonstration project and authorizing Chair and Executive Director
to execute necessary purchase agreements.
Chairperson Commers recalled seeing a list of properties being foreclosed in Fridley that had
over 135 homes listed.
Mr. Bolin said he has not looked at the sheriffs sale list recently.
Chairperson Commers asked about the list of properties going to auction.
Mr. Bolin said that staff would find out about the home after the Sheriff gets the auction list.
There are several lists to consider. Dan Wilson has also put together a list with specific vacant
foreclosed properties that are bank owned and have been through the redemption period. There
may be a few properties near the rail station that could be possibilities. Staff would need HRA
approval first before they look into properties.
Commissioner Holm asked if staff was comfortable with the cost parameters that are laid out
because if the cost is exceeded, staff will have to come back to HRA.
Mr. Bolin said that staff is comfortable with the numbers as of today. If it will require more
money to bring the home up to code, staff will come back if the numbers need to be adjusted.
Staff will try to stay around $180,000 total with price of the home and the cost of the remodel.
Commissioner Holm said that Coon Rapids did a similar project and reused commodities which
is more cost effective than buying new.
Mr. Bolin said that the proposals will reflect some upgrades that will need to happen to bring the
house up to building code. Some of those updates will be specified but staff also expects some
creativity from the remodelers that will bid on the job.
Commissioner Holm asked if a timeline has been established for this project.
Mr. Bolin said there is a timeline in the packet and the schedule may be aggressive. If a home
can be attained by the beginning of February we would like to be finished by May to hit prime
selling season.
Commissioner Holm said that he assumed staff would like to move relatively quickly on the
purchase of a home.
Chairperson Commers said that the more people available with the Authority to sign, the better
off we will be if emergencies come up. Maybe an amendment should be made to the resolution.
MOTION by Commissioner Holm to include the Vice Chair, Director or Assistant Executive
Director to make necessary purchase agreements in absence of others. Seconded by
Commissioner Gabel.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DELCARED
THE MOTION CARRIED UNANIMOUSLY
MOTION by Commissioner Gabel to approve the Resolution Authorizing Home Improvement
Demonstration Program as amended. Seconded by Commissioner Holm.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY
Commissioner Gabel asked how payment would be authorized along the way if there was a
small contractor.
Mr. Bolin said that could be addressed more specifically if a contractor needs a special
consideration otherwise it would run like other building /remodeling projects where we give them
a down payment to get them started and at key points throughout the project. Then a final
payment is made when the project is complete.
INFORMATIONAL ITEMS:
1. Housing Loan Program Update
Paul Bolin, HRA Assistant Executive Director, said there was a very busy November. Five RLF
loans were closed which makes a total of 16 RLF loans year to date. There were two other loans
in the past months making 18 loans total year to date. The Remodeling Advisor Visits had just
one visit for November making a total of 16 visits year to date.
Mr. Bolin provided an update on delinquencies in the loan program. There are still six loans
that are more than three months past due, the same six that were discussed before. At least two
of the six have had their homes foreclosed on and our loans are in the second position. I spoke
with Mr. Pribyl about taking a close look at the loans that are out there to see which ones should
be taken off the books. There is no harm to leave these loans on the system. The Community
Reinvestment Fund has had some personnel changes and the person who has taken over our
delinquencies is going to follow up with a report on the six delinquencies.
Commissioner Gabel asked if there was anything HRA could do to help them out.
Mr. Bolin said that one loan was previously moved into our deferred loan program so there have
been cases we have made adjustments to help the borrower.
Chairperson Commers asked if any of the six delinquent loans we were talking about would be
appropriate for the demonstration project since we are in second position there.
Mr. Bolin said he would take a look at those properties and see where they are at with the
redemption period. A few may be out of reach already but he will look at the others.
NONAGENDA UPDATE:
NorthStar Rail
Chairperson Commers noticed that they are making a five minute change in the North Star
train schedule. He asked if there was anything else to add.
Paul Bolin, HRA Assistant Executive Director, said that late this afternoon he had an
opportunity to attend the Authority meeting at Anoka County and received an update on how the
system is doing. The first few days the train was in operation 4% of the people riding were
getting on in Fridley. They do not have counts as to how many people got off in Fridley. There
is no easy way to get those numbers and it would require a physical count of the riders getting on
and off.
Mr. Bolin said that the bus connection from St. Cloud to Big Lake has been averaging 74 riders
a day which is already half of what they expected ridership to be a year from now. St. Cloud will
hit their numbers for sure. Right now there is a group whose efforts are to work on the 2010
budget focusing on the connection from Big Lake to St. Cloud. They are also looking at what
they can do to support the Northern Light Express.
Commissioner Gabel asked if Medtronic was using this to pick up employees.
Scott Hickok, Community Development Director, said that they were one of the most
enthusiastic partners prior to development but they are interested in a joining shuttle service that
other large employers would use. They have a very good response for ridership and an interest
in a shuttle.
Gateway North East
Paul Bolin, HRA Assistant Executive Director, said that the buildings will start to come down
next week. They will recycle what can be salvaged and then the demolition will start. They will
be doing asbestos removal first. They plan to have everything down by Christmastime.
Fridley Medical Clinic
Chairperson Commers asked if HRA should continue with the Columbia Arena issues since the
Medical Clinic decided to build at the Unity Hospital site.
Mr. Bolin said that we do have some valuable data to help us down the road and have the blight
analysis completed. No formal action is required from the HRA on that project at this time
ADJOURNMENT:
MOTION by Commissioner Gabel to adjourn. Seconded by Commissioner Holm.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT
8:40 P.M.
Respectfully Submitted,
Krista Monsrud, Recording Secretary
ri INFORMATIONAL ITEM
HRA MEETING OF JANUARY 7, 2010
MY OF
FRIDLEY
r% 1_ n _
vaLIZ- VGI,GIIIuCI ou, 4uuzl
To: William Burns, City Manager
From: Paul Bolin, Asst. Executive HRA Director
Subiect: Home Improvement Demonstration Proiect Update
Staff has been working diligently to find the "right" home for the project. Last month we defined
the "right" house as being: 1) a vacant rambler; 2) in a visible location; 3) structurally sound; 4)
priced correctly; and 5) in need of repairs and updating that will not require excessive investment
from the HRA.
Finding the right house is more challenging than originally thought. It's been difficult to find a
property meeting all of our criteria. One unanticipated problem is that a number of the vacant
homes are actually in foreclosure for the 2nd time. It appears that too many people spent their
weekends watching "Flip This House" then went out to purchase a foreclosed home, updated the
kitchen and /or bathrooms and were then unable to sell the homes resulting in a vacant foreclosed
home with some updates already in place.
We are also finding that a number of bank owned homes that are listed "for sale" have pending
offers and that some homes approved for a short sale are awaiting some 3rd party approval.
Additionally a number of these bank owned homes are being rented, which would result in the
HRA needing to pay relocation benefits.
Staff remains committed to finding the right house and believes that a home will be found fairly
soon. Staff has found some homes that nearly meet all of our criteria, except for visibility. In
fact staff has a viewing set up for 12/31 at a home on Mississippi Street that, at first glance,
seems to meet our criteria. With new homes going up for sale daily, it is simply a matter of time
before we find our home.
Fridley HRA
Housing Program Summary
Cover Page
January 7, 2010 HRA Meeting
Report
Loan Application Summary
Loan Origination Report
Remodeling Advisor
Description
Loan application activity (e.g. mailed
out, in process, closed loans) for
December and year -to -date.
Loan originations for December and
year -to -date.
Shows the number of field appointments
scheduled and completed for the
Remodeling Advisor Services
administered by Center for Energy and
Environment.
H:\— Paul's Documents \HRA \HRA Agenda ltems\2010\January 7, 2010 \Housing Program CoverJanuary.doc
N
C
cC
O
J
N
c
O
R
V
.Q
a N
O c
CL
L
Q
N
C
R
O
J
N
C
O
O �
V ,a
CL v
Q d
a�
N
y c
O
t1 i
4) a .Q
Q Z Q
O
O
N
E
N
L
Q �
U
.2
CL
�a
'a I
d
N
O
Al
y N 0 0 0 0
(a
4)
O
n
C�
G
al
d
N
O
N
4> 0 0 0 0 0 0 0 0 0 0
O
1 N
C
3 N O O o 0 0 0 0 0 0
D
A
C
O
N_ w
LL 3 -� LL
CL CL
> > c 0 a a
O O 7
LL k K O J LL
m R IL LL J ,Q
0 U) J C r w to i
C 'i dLL :3 CD c
y i CL E E Lu Y IC W
d ? 41 O ` !C
a))LiiniiUU 0 00
LL LL LL LL w LL
2 �
X 2= 2 2 W L 2 Q
L x x 2 2 2 m 0 a 2 al
00
,a.
N
t -7
ti
If',
R
0
H
4i
N
3
W
W
U
a>
t
E
O
c
O
a
Q
CL
R
L
L
Im
Q
3
O
v
L
d
3
O
A
r
L
d
Q.
O
L.
Q
C
7
O
O
c
.Y
O
O
c
N
d
O
0
O
c
d
N
CLN
R
v
Q
R
w
O
L-
E
Z
Fridley HRA
Loan Origination Report
December 21, 2009
Loan Originations
This
Month
HRA Loans (incl. CFUF Discount loans)
HRA Deferred Loans
Other Loans (non -HRA)
Total
Fundino Sources
Previous
Months Since 1/1/2009
17 17
1 1
18 18
Single Family
Duplex
Tri -Plex
4 to 9 Units
10 to 20 Units
20+ Units
Total
Types 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
# of Projects
17
1
18
3
2
1
2
3
1
4
2
6
2
1
% of Total
11%
7%
4%
7%
11%
0%
4%
0%
0%
0%
15%
7%
22%
7%
0%
0%
4%
17
1
18
This
Previous
Month
Months
Since 1/1/2009
Fridley HRA $
$
255,666.49
$
255,666.49
MHFA FUF /CFUF $
$
62,715.00
$
62,715.00
Met Council $
$
_
$
CDBG /HOME $
$
$
CEE $
$
$
Other $
$
$
Total $
$
318,381.49
$
318,381.49
Types of Units Improved*
*some households receive more than 1 loan, so the # of loans may not equal # of units improved
This
Previous
Month
Months
Since 1/1/2009
Single Family
Duplex
Tri -Plex
4 to 9 Units
10 to 20 Units
20+ Units
Total
Types 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
# of Projects
17
1
18
3
2
1
2
3
1
4
2
6
2
1
% of Total
11%
7%
4%
7%
11%
0%
4%
0%
0%
0%
15%
7%
22%
7%
0%
0%
4%
17
1
18
0)
C)
N
U
Cl)
!L
V+
a
Q
A/
0
0
0
N
r
N
L
�.i
0
N
r+
d d
E d
00
.Q V
Q
d 'S
r O r O r r N N N 0 V-
Q CO
a
• t O p p O p 0 O O O O O
�+ p O O p 9 p 0 0 0 p 0 0
L L cu i O p Q
' �Ii2Qm�,Q(nOZ0F�-
FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY
January 7, 2010
Nor�A�x�,
1. Northstar Update
Ridership numbers have started to increase thanks to the snowy cold weather. Recent inspections of
the parking lots have seen car counts increase from the mid 30's to over 60 cars as the snow has
continued to fall. It is likely Northstar will retain these riders as they have now experienced the
convenience of commuter rail.
2. Gateway Northeast Update
By the time of next weeks HRA meeting there should be little evidence of the blighted structures the
HRA acquired over the past 3 years. Landwehr Construction has been methodically dismantling and
separating out various materials for recycling. While this, combined with snow, has caused some
delay it has ensured that only non recyclable materials are going to the landfill.
City Engineering Staff has been very helpful in inspecting the demolition project and Leisch
Associates have spent a great deal of time on site ensuring all hazardous materials are properly
removed and disposed of.
3. Fridley Medical Clinic
The Clinic has received approval from the City Council to construct their new building on property
currently owned by Unity Hospital. Construction is expected to begin early next week.
The project received some "stimulus" funds, in the form of tax exempt bonds, for which Anoka
County was the conduit. A copy of a Startribune article on the project is attached.
4. Decorative Fence
It appears that there may be some strange magnetic force in our anodized aluminum fence along
University Avenue (or maybe it's just bad drivers!), as we have had another vehicle destroy 5 sections
of the fence near 58th Avenue. This incident was the result of a driver placing papers in a folder while
driving and not realizing that traffic had stopped, until his car rear ended the vehicle in front of him
sending that vehicle over the curb and through our fence on 12/22/09. The inattentive driver does
have valid insurance and all paperwork has been turned over to the League of MN Cities insurance
folks. We have already initiated repair of the fence.
5. Cub Foods
Tri -land development group, this past Friday, made a formal application to redevelop the Cub
Foods/Fridley Liquor store site as a Planned Unit Development. Tri -land plans to begin construction
of phase 1 in June. Staff will share more details as the project moves forward.
6. Loan Delinquencies
Because of the HRA's willingness to work with borrowers in these tough economic times, we have
seen some positive movement on 3 of the 6 chronic delinquencies on the Loan Programs books. In
discussions with the Community Reinvestment Fund, it was determined that the HRA could provide
flexibility by creating payment /forbearance plans that would again get the borrower's back on track
with their payments. This flexibility has already led to formal agreements with 3 of the delinquent
borrowers, with combined principal balances of $25,994.
http: / /www. startribune. coml local / north / 80150412 .html ?elr= KArks:DCiLJMcyaL_nDayc
6 — 211001^ 11 I'LU , -, f "JW I I E =
a
Stimulus helps finance Fridley
Medical Center
Job creation is the main selling point
of a plan to let a developer offer
investors tax - exempt returns.
By MARIA ELENA BACA, Star Tribune
Last update: December 26, 2009 - 10:45 PM
A groundbreaking type of funding is giving a
boost to the new Fridley Medical Center,
where construction began this month.
Rather than going to a traditional lender, the
building's owners will sell shares to private
investors in the municipal bond market, just
as cities and counties do for roads and
construction projects. It's something that
private companies normally can't do.
But under $17 million in new bonding
authority it received through the federal
stimulus package, Anoka County will in effect
transfer some of its bonding, or borrowing,
power to the companies behind the $14
million project.
The hope is that investors will be drawn to
the stability and return of the tax - exempt
bonds, and that the owners, Multicare
Advertisement
Pagel of 3
Associates and the Premier Medical Partners,
will be borrowing at a fixed - interest rate
that's two - thirds to half what of they would
pay to a bank.
To qualify for this type of funding under the
federal program, a project must meet these
criteria: serve an economically stressed area;
create jobs and economic development;
improve access to health care; have regional
significance and contribute to the tax base.
Multicare and its partners will be responsible
for repaying the bonds on time, with interest.
The partners are not receiving money from
Anoka County, the feds or any other
government body. The county simply is
acting as a gatekeeper to determine which
projects qualify.
The County Board and the Housing and
Redevelopment Authority approved the
project last month. The bonds will be sold in
early January.
"This just fit every bit of the criteria, right
down the line," said project developer Rod
Lee. "It was almost like it was written for this
project."
Seeking a ripple effect
Print Powered By
http://www.startribune.com/templates/fdcp?1262206829072 12/30/2009
WAPOMS W27116
25,0 each
nth purchase of tv
4x6.. Kodak instant prints
'hi.. v}tyPc, 7�". �d['..;6i'✓S "GX' .. �) "a?iL �£`,3P1,� ' '& a,
...... ..
€a`w Au°€
tow � g� Ewa �
3
Print Powered By
http://www.startribune.com/templates/fdcp?1262206829072 12/30/2009
http: / /www. startribune.comllocallnorthl 80150412 .html ?elr= KArks:DCiUMcyaL_nDayc
fo-31TUI "-#01111
The new facility will house Multicare's
professionals in family, internal, pediatric, O
B /GYN, occupational health, orthopedics,
surgery and nutrition services; Minnesota
Oncology and Allina's Virginia Piper Cancer
Institute; a pharmacy; therapy and pain
services, and more.
It's estimated that the project will preserve
175 jobs in Fridley and add 50 more doctors,
nurses and other medical - related jobs. In
addition, it will provide work for about 125
construction workers, who will make an
average of $45 an hour, plus benefits.
An additional hope is that the project will
create a ripple effect, said Cevin Petersen,
Anoka County Finance Division manager.
"The whole purpose is to create jobs," he
said. "It's the beginning seed of the whole
area. Once one thing goes in there, normally
there are tagalong businesses that come
along."
Multicare CEO Jeannine Schlottman said the
move and expansion allows the company to
bring in more physicians and expand
services to clients.
"We have been here for almost 50 years, and
our patients all live in this area," she said. "We
Havernsement
have a commitment to this city, to this
community, for many, many years. We need
to be accessible and we need to be
convenient for them."
Page 2 of 3
Multicare and Premier also co -own Blaine
Medical Center and Roseville Medical Center.
The Fridley building is fully leased, although
developers just broke ground on the project
Dec. 16. That's unusual, even in a stable
economy. Schlottman said the hope is that
the building, near the intersection of 5th
Street and Osborne Road NE., will open by fall
2010. The old building, farther east on
Osborne Road, will be demolished. Both sites
are part of Allina Hospitals & Clinics' Unity
Hospital, Fridley campus.
A few other companies have expressed
interest in the federal program, but the
county has approved no other applications
yet, said Karen Skepper, Community
Development manager.
"Most everyone is currently looking at
projects they have on the books from last
year, and determining whether traditional
financing or these new resources are a better
use for them," she said.
The facilities bonds must be issued by Dec.
Pant Powered By
http://www.startribune.com/templates/fdcp?1262206829072 12/30/2009
�xps 2•211ta
with purchase of Menty -: fie
,
44" Kodak instant prim
.'U
r.c.::+.Y a Hr- .w - &E3 �s �f,, •C 4 /i, ta34'» ,,,`Y"s.
''o.;%.�� � ^�€{ "'' t*i^ a +4ED,0
e^
41 s.
Pant Powered By
http://www.startribune.com/templates/fdcp?1262206829072 12/30/2009