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HRA 10/07/2010 - 6257r October 7, 2010 HRA Meeting Regular Meeting Agenda 7.00 p.m. City Hall, Council Chambers Call to order Roll call Action Items 1. Approval of expenditures 2. Approval of September 2, 2010, Meeting Minutes 3. Approval of Purchase Agreement for 6061 University Avenue Informational Items 1. Housing Replacement Program - TIF District Financial Overview 2. Home Remodeling Demonstration Program 3. 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Approval of Expenditures Chairperson Commers asked in the reimbursement column of the City, the large amount the Commission pays is listed. He asked if they could get a description of what the charges cover. Paul Bolin, HRA Assistant Executive Director, replied he would talk to the Finance Department. Commissioner Gabel asked what is the utility bill? It is only $6. Is it on University Avenue? Mr. Bolin replied they still have some minimum power on at the Select Products building. Commissioner Gabel stated, asked regarding the home demonstration, that must be just furniture rental for staging, etc. for the house? Mr. Bolin replied, correct. MOTION by Commissioner Gabel, seconded by Commissioner Holm, to Approve the Expenditures. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. Approval of August 5, 2010, Meeting Minutes Commissioner Gabel referred to the third page, Item 4, "Tree Replacement on HRA Property" she thinks they should point out where it was at. Add an address or something. Chairperson Commers asked if they could add it at the end right before Mr. Bolin's recommendation, the Fridley City sign is on the corner of Fourmies Avenue and University Avenue Service Road. MOTION by Commissioner Holm, seconded by Commissioner Gabel, to approve the minutes. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. Approval of 2010 Tax Levy for Taxes Payable in 2011 Mr. Bolin stated State Statute authorizes housing redevelopment authorities to levy properties within their community to support housing and redevelopment efforts. The levy is equal to .0185 percent of a property's taxable market value. The 2011 levy as proposed will allow the HRA to collect approximately $473,000 for its ongoing efforts. This is a decrease from 2010. In 2010 the HRA collected $498,000. The reason for that decrease is that the overall market value has decreased by over $137,000,000. �..� Mr. Bolin stated as to the impact that this levy has on the Fridley taxpayer, if you own a $150,000 home, it will be $27.75 for the year 2011. If you own a $1 million commercial property, you would pay $185 towards this. Staff does recommend approval of the resolution consenting to an HRA tax levy. It does provide the HRA the ability to fund its ongoing and future redevelopment efforts. Chairperson Commers asked now as long as they have made an assessment, under the lawsuit that was brought against the County, is it not true the County HRA will not be able to levy a second assessment? Mr. Bolin replied, that is correct. MOTION by Commissioner Holm, seconded by Commissioner Gabel, approving the 2010 Tax Levy for Taxes Payable in 2011. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. Approval of Continuation of Home Remodeling Demonstration Program Mr. Bolin stated despite all of that negative news that is out there, all the measures indicate the remodeling program they have been doing has had an impact in Fridley. They had over 2,000 2 �1 people (majority being Fridley residents) who went through the house once it was finished. Looking at building permit records, specifically looking at remodels from April through the end of August 2009 vs. April through the end of August 2010, they were actually up. It was 15 remodels vs. 12 remodels in 2009. Mr. Bolin stated looking at their loan numbers through the end of August, this year they have closed 10 loans. Last year they were at 8. Over the months they have been doing this program, they have been seeing more applications. With all the credit being tightened up, he does not think their approval rate has been as high as it has been in the past. Mr. Bolin stated Shaun Lennox, the builder they worked with on this, has met with a couple dozen Fridley residents. If he was not available to do that, the HRA may have also seen an increase in its Remodeling Advisor visits. Mr. Bolin stated he thinks they are going to see the effects of this project over the next several months. They have given people a lot of different ideas and a lot of things to think about. One of the first questions people asked when they came through the house was, "When are you going to do another house ?" Mr. Bolin stated they would also like to put a couple of twists on what they have already done. One would be to showcase improvements to make a split -level home more livable and the other would be what they would like to call "one -level living" options that would allow residents to age in place. Mr. Bolin stated he feels they have a good team in place and would like to continue on with Lennox Builders and with the realtor, Tim Van Auken. Now staff would rather work with them in selecting the houses. By doing so the HRA would end up with a house that Lennox Builders can upgrade to the point where it needs to be without pricing the home out of the market. Mr. Bolin stated another twist is that these properties the HRA acquires for this could be put into the HRA's scattered site housing replacement program. The way that is set up, it just needs to be an improvement to the home, and bring the home back up towards market value. A remodel definitely qualifies and would also allow the HRA to collect some increment for 15 years. Mr. Bolin stated staff recommends the HRA approve two motions authorizing staff to continue with the home improvement program for up to two more homes. Also, staff would like the HRA to authorize them to work with Lennox Builders and Tim Van Auken of Counselor Realty on the project. Finally, for the HRA to authorize staff and the Board chair or vice chair to execute any necessary purchase agreements that come up as staff is out trying to acquire properties. Commissioner Gabel stated she is very much in favor of moving forward with this. She thinks the ideas Mr. Bolin came up with are good ones. Commissioner Eggert stated his reaction is he thinks Mr. Bolin is trying to assemble a small team that can move quickly and appropriately in the market that has been a little confusing at 3 times and to be able to react to those opportunities quickly. On the construction side that would be a tremendous help to be able to move quickly. Commissioner Holm stated he agrees and he liked Mr. Bolin's idea that he mentioned about a green house. Particularly focusing on energy efficiency. He thinks that would be a great way to continue on with this program. He is fully supportive. Chairperson Commers stated they certainly did do a wonderful job on the Mississippi property, and they are all certainly supportive of trying to move ahead in getting these next couple of properties. MOTION by Commissioner Gabel approving the continuation of the Home Remodeling Demonstration Program. Seconded by Commissioner Holm. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. INFORMATIONAL ITEMS 1. Housing Replacement Program Mr. Bolin stated by the October meeting they should have closed on the property on 2 %z Street currently owned by Bremer Bank. Commissioner Eggert stated the house will go away. How is staff setting up that site for the next developer? Mr. Bolin replied, because of the condition of this home, once they have control of it; he would like to come back at the October meeting with a resolution to have it added to the Housing Replacement Program. The HRA needs to do that once they take control of it and before they demolish the home. He would like to come back in October and get authorization to go ahead and take that home down. Mr. Bolin stated he is hoping to close on the home on Fairmont. That is another one that is on a slab, but it is completely full of mold as is the garage. Ideally he will have two properties to come back at the October meeting, get them into the program, and get those down this fall. If they go out with bids to take down the two homes, that will save them money as well, rather just having a single home demolished. Commissioner Holm asked, and is there a replacement build or is that not possible? Mr. Bolin replied, that is a buildable lot. Chairperson Commers asked regarding the third property mentioned, Brookview Drive. EWA V Mr. Bolin stated he has been through it and, now that the Commission has given them some approval to move forward with the program, they are going to go back and go through it again with Lennox Builders for their opinion on doing something with that one. Fannie Mae owns that property. 2. Housing Loan Program Update Mr. Bolin stated they did close on one of their revolving loans in August. That brings them to a year -to -date total of 10. Last year at this time they were at 8. Looking at the Remodeling Advisor visits, the year -to -date total is 8. He thinks last year at this time they were at 11. He thinks part of the reason the visits have not gone up along with everything else is because when people came through the home, the person who actually did the work on our particular home happens to be there and they end up talking with him and getting a number of ideas. Chairperson Commers asked, so they sent out 29 loan applications, processed 15, and closed on 10? Mr. Bolin stated, yes, and the 29 sent out is simply the number the Center for Energy and Environment sent out. They handed out close to 125 loan applications at their last weekend series of open houses. There has been even more handed out than those numbers suggest. 3. Northstar Chairperson Commers stated he assumes this is going along reasonably well. Northstar did do some passenger checks to see who is getting on and off, did it not? Mr. Bolin replied, they did, and they are still promising to meet with Dr. Burns and him. They keep postponing the meeting. The City has been continuing to get Northstar's more generic monthly updates. All the numbers keep increasing every month. 4. The Waters of Fridley Mr. Bolin stated Trident has met again with their financing people, and they have actually gone ahead and started working on their engineering plans. Their plan is still to apply for permits this fall and start construction before the first of the year. They had changed the name to "Land Mard." 5. Cub Foods Redevelopment Mr. Bolin stated the City liquor store is close now to finalizing a new lease for the new space. There has been some serious interest from one of the largest hotel groups in the country. This was a meeting actually with representatives of the group that owns Holiday Inn, Crown Plaza, and a number of other hotels. Commissioner Gabel asked is there enough room there? 5 Mr. Bolin replied, there is some green space parking area beyond the southwest corner of this site. That was the area where the group from Chicago who owns this center, designated that area in their master plan for a future hotel site or a future stand -alone retail. There would be some challenges there, such as the grade difference between Main Street. However, he thinks there probably is a way to do it. Chairperson Commers stated they should have an old file on the hotel deal. They did surveys and other things. They went to Medtronics to see what they would be willing to do, etc. The HRA should have that to refresh their minds about what was said back at that time and why the projects did not go then. Mr. Bolin stated he was in the Planning Department back when those studies were done. They did them jointly with the City of Columbia Heights. They had Dick Paik, consult from Boston come in, and they were looking at spin -off developments from large corporations such as Medtronic. The biggest thing that came out of that study in regards to hotels was the fact that Medtronic was telling them was that the people they were bringing in would want more amenities than what was currently available in Fridley. Commissioner Eggert asked if a hotel ends up there, would he be able to easily get from the hotel to the train station? Mr. Bolin replied, yes. They just had a meeting on Tuesday again looking at transit- oriented development and the Overlay District they are working on. A big piece of that would be some sort of multi -use walkingibiking trail that would go on Main Street and would make the connection between the rail site and the development there on 57th and the Home Depot and sort of everything else down there as well. 4. Faulkner Senior Assisted Living Mr. Bolin stated they thought they would not hit water until they were down about 13 feet, and they ended up finding water at about 8 feet so that held them up a little bit. They had to do some dewatering, and the City had a pipe that went through the site and so they had to move that; but they have most of the footings installed and they are going as quickly as they can down there. When Mr. Bolin talked to Mr. Faulkner about a week and one -half ago, he still thinks they are going to be ready to open January 1. 5. Sikh Society Property Mr. Bolin mentioned they did close on the Sikh Society property late last week. Commissioner Eggert asked, the title got figured out? Mr. Bolin replied, yes, they ended up getting the title from McDonald's and rather than take any chances, staff had the folks that it works with at Land Title take it up to the County and get everything filed. The Sikh Society may need to look at extending their lease a couple of months. They are going to do everything they can to get out of there by the first of the year and get into 2 their new building. However, they did ask if they run into some problems and they cannot get into their new building by the end of the year, they would actually like to stay in this building until he thought it was the 15t' of April. That coincides with some holiday that the Sikhs have. There is a clause in the lease agreement allowing the Commission as a Board to extend their lease as long as they do it before the end of December. Mr. Bolin encouraged them to get out by January 1 but, if it looks like that is not going to work, they will come back to the Commission before the December meeting and if the Commission so chooses they can grant them an extension. Chairperson Commers replied, they should not have any problem working with them. It is better to have it occupied in the winter anyways. ADJOURNMENT: MOTION by Commissioner Eggert to adjourn. Seconded by Commissioner Holm. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MEETING ADJOURNED AT 7:55 P.M. Respectfully submitted, Denise M. Johnson Recording Secretary 7 r ACTION ITEM HRA MEETING F� EY OCTOBER 712010 vaLc. %2up1G111UC1 LO, LU 1 U To: William Burns, City Manager From: Paul Bolin, Asst. Executive HRA Director Subject: Gateway Northeast Property Acquisition - 6061 University Avenue After nearly 5 years of discussion, Il Kim, owner of the Tae Kwon Do studio has submitted a letter of intent and a signed purchase agreement to move forward with selling his property to the Authority. The purchase agreement reflects the amount the HRA had offered to Mr. Kim earlier this year. The total amount of the purchase will be $375,000. Line items included in the $375,000 value are as follows: $310,000 for the building and land, $50,000 for "Business Reestablishment Fee ", (BRF). Statute would require the Authority to pay a n BRF if the property were to be acquired through eminent domain. Negotiations therefore included the BRF value to avoid potential condemnation cost, time, legal fees, etc. The remaining $15,000 will cover moving expenses. Staff recommends approval of the attached agreement, as it allows a nearly 4.5 acre development parcel with the inclusion of this property. September M -2010 Dan Wilson Wilson Development 510 Chestnut Street, Suite 200 Chaska, Minnesota 55318 RE: Letter of Intent for 6061 University Avenue NE, Fridley, MN 55432 Dear Mr. Wilson: We would like to make the following proposal for the sale of my property at the above address. PURCHASE PRICE $375,000.00 Total Purchase Price The Purchase Price will be allocated as follows: n $310,000.00 Property Acquisition Price; - -$15,000.00 Actual Cost Business Relocation Moving Expenses; $50,000.00 Business Reestablishment Relocation Expenses. CONTINGINCIES To be negotiated. CLOSING DATE 1 .� J`- �. v,�r' it V, °� `� ►N� Within 60 Days.v r . f c I k �rj CLOSING COSTS AND PRORATIONS To be negotiated. LEASEBACK Months Free Rent Months at a Rental Payment of $ >J W W If you would like to discuss this Letter of Intent further, I can be reached at (763) 571- 5540. Sincerely, 4"Kuen. Kim kHee Kim /\�� V 4A A��O a 1 RAP e P_ vp 101 l iU� �' INFORMATIONAL ITEM ri HRA MEETING OF OCTOBER 7, 2010 CRY OF FRIDLEY Date: September 29, 2010 To: William Burns, City Manager From: Paul Bolin, Asst. Executive HRA Director Subject: Scattered Site Housing Replacement Program Update Recent Purchases Since the September HRA meeting staff has closed on the houses located at 5825 2 1/2 Street (9/21) and 521 Fairmont Street (9/28). Due to the large amounts of mold in both homes and the garbage in the home on 2 1/2 Street, it is necessary to demolish the properties as soon as possible. Liesch Environmental conducted pre - demolition hazardous material assessments on 9/28 and will have test results and reports back to staff the week of October 11th. Staff will then include the reports in a bid solicitation that will be sent out to demolition contractors. Staff will ask the HRA to approve a demolition contractor on November 4th. Potential Purchases Staff has continued to look for other homes both through the MLS and the TCCLB First Look Program. Staff inspected 7 different homes this week and just today reached a verbal agreement with Freddie Mac for the substandard home located at 434 Liberty Street. This home will also need to be demolished, but will provide a large wooded lot for a future home. Additions/Uudates to the HRP Scattered Site TIF District We've attached a memorandum from Attorney Casserly, a chronology for creating Phase V of our housing replacement district and a copy of the updated housing district plan with the financial assumptions included. The public hearing on the restated plan required for Phase V will take place in December. The restated plan will give the HRA the flexibility to add parcels without the expense and time delays caused by notifications and hearings for each parcel. Greg Johnson will be at next Thursday's meeting to give a brief overview of the financial assumptions used in the plan. M©NROE IMOXNESS BERG James R. Casserly jasserly@mmblawfirm.com Direct 952.885.1296 Greg D. Johnson gjohnson @mmblawfirm.com Direct 952.885.5994 MEMORANDUM 8000 Norman Center Drive t 952.885.5999 Suite 1000 F 952.885.5989 Minneapolis, MN 55437 -1178 www.MMBLawFirm.com To: City of Fridley Housing and Redevelopment Authority Attn: Paul Bolin, HRA Assistant Executive Director Attn: Scott Hickok, Community Development Director Attn: Bill Burns, City Manager From: James R. Casserly, Esq. Greg D. Johnson, CPA, Senior Financial Analyst Date: September 28, 2010 Re: Fridley Housing Replacement Program - updated Our File No. 9571 -13 Attached is our most recent draft of the City's Restated Housing Replacement District Plan (the "Restated Plan "). The City originally adopted a Housing Replacement District Plan in 1995 after Special Legislation was approved specifically allowing several cities to initiate a market rate housing program (the "Program "). Fridley added additional parcels to its Program in 1997, 2001 and 2004. In 2010, the Legislature reauthorized certain changes and expanded the number of parcels that could be included in Fridley's Program. The Restated Plan incorporates a number of changes to the original District Plan including the updates authorized by the 2010 Special Legislation. The motivation for adopting the Program was to provide specific communities with a financial tool to encourage the development of market rate housing. The Tax Increment Act clearly assists with low income housing options and the redevelopment of blighted property. However, communities, such as Fridley, also need to stabilize and promote market rate housing. The Special Law authorizing and amending the Program has a number of unique features which include the following: e It is solely a market rate program and any housing assisted must not exceed 150% of the average market value of single family housing in Fridley. n • The program is designed to deal with vacant sites, parcels containing vacant houses, or. parcels containing houses that are structurally substandard (using the n redevelopment definition contained in the Tax Increment Act). f�\ • Tax increment is calculated by determining the value of the improvements on the parcel. The value of existing improvements are ignored. As a result, the value of the entire structure is used in the calculation to determine the tax increment (this allows the HRA to buy structures to be demolished or to buy homes that need substantial rehabilitation without being penalized). • Once the City and the HRA have approved a housing replacement district plan and have established criteria for the inclusion of parcels in the housing replacement district, then a simpler process can be employed to include additional parcels. In the Restated Plan, the following items should be noted: • The Municipal Action Taken provides a history of the Program in the City of Fridley. • Section 1.5 describes the criteria for including parcels in the District. • Section 1.6 describes the procedure for adding parcels to the District. This Section allows for inclusion of additional parcels by resolution of the HRA provided that the parcels adhere to the required criteria. • Section 1.7 further allows the Authority to delete parcels from the District and describes the circumstances in which this may occur. • Section 1.9 describes the proposed development activity and indicates that 100 parcels may be included. This has been specifically authorized by the 2010 Special Legislation which also eliminated a restriction on the number of parcels that could be included in any one year and eliminated any sunset to the Program. • Section 1.10 describes the estimated project costs and Exhibit 1 -A shows the budget for existing phases and for potential additional phases. • Section 1.12 provides for an analysis for the estimated impact of including the parcels on the various taxing entities. Because Fridley is in four (4) school districts and we do not know how many parcels might be included in the Program in any given school district, we have shown the impact of the inclusion of one parcel and 78 parcels for each school district. • In addition to restating the Housing Replacement District Plan, we are also adding Phase V which includes two (2) parcels. ,..1 This Restated Plan which incorporates the changes authorized by the 2010 Special Legislation will provide the City with another useful tool in addressing its housing 2 needs. The Program should be most helpful in allowing the City to address foreclosure �\ problems, vacant housing issues and housing in need of substantial rehabilitation. It is also possible to use the Program on vacant land to specifically promote market rate housing. The Restated Plan allows the Authority to add parcels, or even to delete parcels, if necessary, in a very expeditious and cost effective manner. Please let us know if we can provide you with any additional information. JRC /al Enclosures MMB: 4849- 0379 -2647, V. 1 3 �1 CITY OF FRIDLEY PROPOSED CHRONOLOGY FOR (1) ADOPTION OF RESTATED HOUSING REPLACEMENT DISTRICT PLAN FOR HOUSING REPLACEMENT DISTRICT NO. 1 INCLUDING PHASES 1 -IV AND.(ii) ADOPTION OF PHASE V FOR HOUSING REPLACEMENT DISTRICT NO. 1 ----------------------------------------------------------------------------------------- THURSDAY, OCTOBER 7, 2010 HRA MEETING Financial Overview of Restated Plan THURSDAY, OCTOBER 28, 2010 NOTICE PROVIDED TO COUNTY RE: ROAD COSTS (minimum 45 days prior to public hearing) THURSDAY, NOVEMBER 4, 2010 HRA MEETING Review Restated Plan MONDAY, OCTOBER 11, 2010 COUNCIL MEETING Call for public hearing THURSDAY, NOVEMBER 11, 2010 RESTATED HOUSING REPLACEMENT DISTRICT PLAN �..� PROVIDED TO ANOKA COUNTY (minimum 30 days prior to public hearing) RESTATED HOUSING REPLACEMENT DISTRICT PLAN PROVIDED TO SCHOOL DISTRICT(S) (minimum 30 days prior to public hearing) THURSDAY, NOVEMBER 18, 2010 PUBLICATION OF PUBLIC HEARING NOTICE (10 - 30 days prior to public hearing) THURSDAY, DECEMBER 2, 2010 HRA MEETING (1) adopt Restated Housing Replacement District Plan for Housing Replacement District No. 1 including Phases I -IV (2) adopt Phase V of Housing Replacement District No. 1 MONDAY, DECEMBER 13, 2010 CITY COUNCIL MEETING - PUBLIC HEARING (1) adopt Restated Housing Replacement District Plan for Housing Replacement District No. 1 including Phases I -IV (2) adopt Phase V of Housing Replacement District No. 1 Revised September 29, 2010 MM13: 4829 - 3829 -9911, V. 1 DRAFT: September 29, 2010 RESTATED HOUSING REPLACEMENT DISTRICT PLAN FOR HOUSING REPLACEMENT DISTRICT NO. 1, INCLUDING PHASES I,11, M, 1V, V THE HOUSING AND REDEVELOPMENT AUTHORITY In And For THE CITY OF FRIDLEY, MINNESOTA AS RESTATED AND AMENDED December 13, 2010 Prepared by: MONROE MOXNESS BERG PA 8000 Norman Center Drive, Suite 1000 Minneapolis, MN 55437 (952) 885 -5999 MMB: 4825 -8932 -1474, v. d W /1� MUNICIPAL ACTION TAKEN Based upon the original statutory authority provided by Laws of Minnesota 1995, Chapter 264, Article 5, Sections 44 through 47, the Housing Replacement District Plan was approved and Housing Replacement District No. 1 was created. This original statutory authority was amended by Laws of Minnesota 1996, chapter 471, article 7, section 22, and Laws of Minnesota 1997, chapter 231, article 10, section 13, and Laws of Minnesota 2002, chapter 377, article 7, section 6, and Laws of Minnesota 2008, chapter 154, article 9, section 19, and Laws of Minnesota, Chapter 216, Section 42. As a result of these amendments the Restated Housing Replacement District Plan was approved and was amended to include Phase V. The following municipal action was taken in connection therewith: October 23, 1995: The Housing Replacement District Plan, including Phase I, was adopted. November 24, 1997: The Housing Replacement District Plan was amended to include Phase II. May 3, 2001: The Housing Replacement District Plan was amended to include Phase M. July 1, 2004 The Housing Replacement District Plan was amended to include Phase IV. December 13, 2010 A Restated Housing Replacement District Plan was adopted and was amended to include Phase V. MMB: 4843- 3415 -1938, v. 1 TABLE OF CONTENTS This Table of Contents is not part of the Housing Replacement District Plan.; it is only for convenience of reference. PAGE # ARTICLE I. HOUSING REPLACEMENT DISTRICT PLAN Section 1.1. Definitions Section 1.2. Statutory Authorization Section 1.3. Statement of Objectives Section 1.4. Statement of Compliance Section 1.5. Criteria for Inclusion in the District Section 1.6. Conditions for Acgpisition Section 1.7. Proposed Development Activity Section 1.8. Estimated Project Costs Section 1.9. Estimated Sources of Revenue Section 1.10.. Estimated Impact Exhibit I -A Estimated Project Costs Exhibit I -B Estimated Impact ARTICLE II. PHASE I Exhibit II-A Boundary Map ARTICLE III. PHASE II Exhibit III -A Boundary Map ARTICLE IV. PHASE III Exhibit IV -A Boundary Map ARTICLE V. PHASE IV Exhibit V -A Boundary Map ARTICLE VI. PHASE V Exhibit VI -A Boundary Map MMB: 4825- 7260 -9794, V. L 1 -1 1 -1 1 -2 1-3 1 -3 1 -3 1 -4 1 -4 1 -4 1 -4 I -A -1 I -B -1 2 -1 II-A -1 3 -1 III -A -1 4 -1 IV -A -1 5 -1 V -A -1 6 -1 VI -A -1 ARTICLE I RESTATED HOUSING REPLACEMENT DISTRICT PLAN Section 1.1. Definitions. The terms defined below shall, for purposes of this Housing Replacement District Plan, have the meanings herein specified, unless the context otherwise specifically requires: "Act" means the Enabling Legislation and Minnesota Statutes Chapter 469. "Authority" means the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota. "City" means the City of Fridley. "Comprehensive Plan" means the City's Comprehensive Plan. "District" means Housing Replacement District No. 1, created October 23, 1995 and restated December 6, 2010, and as it may be subsequently amended. "Enabling 'slation" means the Laws of Minnesota 1995, Chapter 264, Article 5, Sections 44 through 47, as amended by Laws of Minnesota 1996, chapter 471, article 7, section 22, and Laws of Minnesota 1997, chapter 231, article 10, section 13, and Laws of Minnesota 2002, chapter 377, article 7, section 6, and Laws of Minnesota 2008, chapter 154, article 9, section 19, and Laws of Minnesota, Chapter 216, Section 42. "Market Rate Housing" means housing that has a market value that does not exceed one hundred fifty percent (150 %) of the average market value of single - family housing in the City. "Parcel" means a tract or plat of land established as a single unit for purposes of assessment. "Phase" means the parcel(s) identified for inclusion and development as part of the Plan. A -Phase may include a single parcel. Phases are designated with Roman numerals. "Plan" means the Restated Housing Replacement District Plan adopted October 23, 1995 and restated December 13, 2010, and as it may be subsequently amended. Plan also includes any eligible program authorized by the Act. "Project" means a project as defined in Minnesota Statutes, Section 469.174, Subd. 8 and Minnesota Statutes, Section 469.002, Subd. 12. "Project Area" means the area within the territorial boundaries of the City in which the Authority is authorized to develop, implement or operate a Project. Section 1.2. Statutory Authorization. The Enabling implementation o the Plan. provides The Authority s establishment of the District and the adoption and implem authorized under the Act to adopt the Plan and establish the Project Area. hi Section 1.3. Statement of Obi ectives. Housing is essentially the determining factor by wch a city is initially judged, and as a result, reflects the character ere are ecrt� areas �� � City wluch resident population. The Authority has determined that may negatively reflect its character and that of currentl realized because they contain parcels that valuable, more productive and more stable than is y and subdivision and zoning practices and are vacant, under - utilized or blighted, due to poor planning (iii) overcrowding, (. ) to existing structures, which because of (i) dilapidation, (ii) obsolescence, facilities, vi ante land faulty arrangement or design, (v) lack of ventilation, light and sanitary (i) q coverage, (vii) obsolete layout, or (viii) any combination of these and other factors, are detrimental to the safety, health, morals and welfare of the community. Consequently, the Authority has further assist in creating viable determined that it is in the best interests of the Cit�tomini ock, �� housing health and safety environments which would upgrade and maintain housing quality standards, and maintain and strengthen the character of individual neighborhoods. To achieve this goal the Authority has adopted a Plan and created a District and Project Area, within which the Plan may be implemented; all pursuant to the Act. This multi Lear, multi-phased Plan will strive to achieve the Authority's and the City s sole objective of acquiring blighted, undevel oped or underdeveloped parcels for redevelopment or rehabilitation and for ultimate resale as Market Rate Housing. Additional public purpose goals that will be realized include: restoration and improvement of the residential tax base realization of comprehensive planning goals revitalization of property to create a safe, attractive, comfortable, convenient and efficient area for residential use creation and maintenance of a healthy and safe environment removal of non - conforming land uses stimulation of private activity and investment to stabilize and balance the City's housing supply elimination of code violations and nuisance conditions that adversely affect neighborhoods recreation and reinforcement of a sense of residential place and security which 1 -2 /'1 creates neighborhood cohesiveness through City investment in neighborhood infrastructure and public improvements, including landscaping, park improvements, local street modifications to reduce traffic impacts, repaving streets, replacing curbs and gutters and updating street lighting encouragement of infill development/redevelopment that is compatible in use and scale with surrounding neighborhoods rehabilitation of existing housing stock and preservation of existing residential neighborhoods where possible demolition and new construction, where necessary, of aging residential buildings to preserve neighborhoods removal of substandard structures, as defined in Minnesota Statutes. Section 469.174, Subd. 10 Housing Replacement District No. 1 is a financing tool that may be utilized to pay the eligible public redevelopment costs for project activities consistent with the public purposes and objectives identified in the Plan. The City is the Project Area within which the. District is established. Parcels included in the District must conform with the eligibility criteria included in the Act, the Enabling Legislation and the Plan. Section 1.4. Statement of Com liance. The Authority has reviewed the Plan and determined that it conforms to the Comprehensive Plan of the City and affords maximum opportunity consistent with needs of the City as a whole. Section 1.5. Criteria for Inclusion in the District. At the time of Plan approval, the Authority cannot identify all parcels that will ultimately be included in the District. As a result, the Authority has set forth the following criteria to be used in selecting future parcels for inclusion in the District. The proposed parcel must comply with the Plan goals and must satisfy one of the following criteria: (1) be a vacant site; (2) contain a vacant house; or, (3) contain a house deemed structurally substandard pursuant to Minnesota Statutes, Section 469.174, Subd. 10. Parcels included in the District are designated as sites that will be prepared and sold for the development or rehabilitation of Market Rate Housing. Following certification, some of the Parcels included in the District may be subdivided and utilized for the construction of more than one housing unit. r'"� 1 - 3 Records documenting the original site conditions and Fridley Housing and Redevelopment inclusion in the District are on file in the offices of the y Authority, 6431 University Avenue NE, Fridley, Minnesota. Section 1.6. Procedure for Addin o, Parcels to the Distri tin Following s adoption n oft this Plan of the City. and Authority, and certification of the Parcels additional Parcels to be Commissioners of the Authority may identify by resolution, at any time, any may added to the District. No more than 100 Parcels maybe included in hie d Sig a designated Parcels meet be added at any time without formal modification of , provided the criteria listed above. Section 1.7. Procedure for Deleting Parcels from the District. If for any reason, Parcels identified in a Phase , or added to this District in the future, from t eDistrict.. redeveloped s of circumstances Market Rate Housing, these Parcels may be deleted fr ite that may result in the deletion of a Parcel from the District include e the property, limitations on sthe preparation costs, inability on behalf of the Authority q marketability of the property, or changes in land use. Under these f commissioners. If If the Parcels that deleted from the District by resolution of the Authority are deleted from the District have not generated any from the District, h se Parcel may be certification and have not utilized any tax increment funds replaced by other eligible Parcels. Section 1.8. Conditions for Acquisition. The Authority may acquire and reconvey parcels subject to the following conditions: (1) The Authority may acquire property by gift, dedication, condemnation or voluntary acquisition in order to achieve the objectives of the Plan; and (7_) Such acquisition will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Section 1.9. Proposed Development Activity. The Authority intends to acquire parcels but e in order to achieve the may not have more than a maximum of one, unfired (l Oparcels at anticipated an for those par cels are Plan's goals. The specific parcels and the development t}' included in the description of the applicable Phase. Parcels included in the District may be conveyed to a redeveloper for the purpose of either building new Market Rate Housing or rehabilitating the existing'-structure. Section 1.10. Estimated Project Costs. The estimated Project costs associated with the District are listed on Exhibit I -A. Section 1.11. Estimated Sources of Revenue. Project costs may be financed through (i) State, County, Metropolitan Council or Federal grants, (ii) tax credits or other incentives, (iii) non- 1 -4 profit investments /contribution, (iv) the annual collection of tax increments, (v) local contribution equal to a minimum of twenty -five percent (25 %) of Project costs payable from other unrestricted monies of the HRA, (vi) a properly tax levy, (vii) HRA general fund and other unrestricted revenues available to the HRA. The tax increment revenues including the assumptions used for the estimated impact in Section 1.12 are described on Exhibit I -C Section 1.12. Estimated Impact. Exhibit I -B reflects the estimated impact of the proposed District on other taxing entities assuming that the development would have occurred without the creation of a District. If the development is a result of the creation of the District, the impact is $0 because the development would not have occurred without the assistance of the Authority. The City is in four school districts and the Impact Analysis illustrates the impact of 1 parcel and 78 parcels in each school district. MMB: 4816- 8341 -7346, v. 1 1 -5 ARTICLE V PHASE V Section 5.1. Specific Development Activity. activity e� for this Phase: to Authority intends to enter into the following proposed (Parcel develop the property located at 5825 — 2 Y2 Street NE (Parcel l) and 521 Fairmont Street NE (P 2) in Fridley, Anoka County, Minnesota. Section 5.2. Estimated protect Costs. The estimated Project Costs for this Phase are listed on Exhibit I -A. Section 5.3. Estimated Market Value. The estimated market value for the housing unit, in this phase cannot exceed 150% of the average market value of single family housing $175,2 the City d and of January 2, 2010, the average market value of single family housing City 150% of that number is $262,800. Upon completion of this Phase, the market value of the housing units included within the Phase is estimated to be $200,000 each. Section 5.4. Original Tax Capacity. The original tax capacity for this Phase, as most recently certified by the Commissioner of Revenue on January 2, 2010, is estimated to be $546 for Parcel l and $498 for Parcel 2. Section 5.5. Estimated Captured Tax Capacity. Upon completion of the proposed ' � development activity, the estimated captured tax capacity of this Phase on January _ estimated to be $2,000 each for Parcel I and Parcel 2. Section 5.6: Original Tax Capacity Rate. The pay 2010 tax capacity rate is 113.820 for Parcel 1 and 94.964 for Parcel 2. Section 5.7. Estimated Tax Increment. Tax increment nof two and one half percent (2.5%) assuming a static tax capacity rate and a valuation compounded annually. For Parcel l this amount is $1,655 and for Parcel it is $1,426. Section 5.8. Duration Limits. Tax increment from the parcels in this Phase is payable to the Authority for fifteen (15) years from the date of receipt of the first tax increment. Assuming the tax increment is received in 2013, it is estimated both parcels in this Phase will terminate in 2028. Section 5.9. Identification of Parcels. The parcels to be included in this Phase are legally described as 23- 30 -24 -23 -0152 and 03- 30 -24 -23 -0088 and are illustrated on the attached Exhibit V- A. MMB: 4841 -7299 -8919, V. 1 5-1 r'"1 Source of Funds Tax Increment Revenue Investment Earnings Bond Proceeds Loan Proceeds Sales /Lease . Proceeds Loan/Advance Repayments Local Contribution Other Transfers in Total Source of Funds Use of Funds Land /building acquisition Site Improvements /preparation costs Installation of public utilities Parking facilities Streets and sidewalks Interest reduction payments Bond principal payments Bond interest payments Loan principal payments Loan /note interest payments Administrative costs Other Transfers out Total Use of Funds EXHIBIT I -nn HRP Budget HRP Budget Total Phases I - IV Add'I Phases Budget $ 438,421 $ 2,418,000 $ 2,856,421 24,180 24,180 58,425 - 58,425 768,750 V-,,'1,682,850 2,451,600 2,064,705 2,630,550 _ 4,695,255 $ 3,330,301 $ 6,755,580 $ 10,085,881 $ 2,250,000 $ 4,836,000 11 $ 7,086,000 575,000 1,014,000 1,589,000 125,000 279,481 404,481 - 639,600 639,600 125,000 241,800 366,800 $ 3,075,000 $ 7,010,881 $ 10,085,881 255,301 (255,301) 0 4836- 2269 -2103 I -A -1 EXHIBIT I - B ESTIMATED IMPACT OF HOUSING REPLACEMENT DISTRICT NO.1 Single Parcel IMPACT ON TAX BASE - Single Parcel IMPACT ON TAX BASE - ISD #11 - Single Parcel TAX ORIGINAL ESTIMATED CAPTURED DISTRICT RATE TAX TAX CAPACITY TAX CAPACITY TAX CAPACITY °/o OF TOTAL ENTITY BASE 500 2,000 1,500 0.006% City of Fridley 26,556,023 500 2,000 1,500 0.001% County of Anoka 295,039,609 500 2,000 1,500 0.001% ISD #11 184,421,984 500 2,000 1,500 0.008 °l0 ISD 413 18,547,967 13,272,880 500 2,000 1,500 0.011% 0.004% ISD #14 36,129,220 500 2,000 1,500 ISD #16 IMPACT ON TAX BASE - ISD #11 - Single Parcel IMPACT ON TAX BASE - ISD 02. Single Parcel TAX % OF TAX TAX RATE RATE TOTAL INCREMENT INCREASE ENTITY Q.32258 33.97% 484 0.002% City of Fridley 0.35189 37.06% 528 % 0.000299 County of Anoka 0.19939 21.00% g 0.000% ISD #11 0.07578 7.98% 114 Other 0.94964 100.00% 1,424 IMPACT ON TAX BASE - ISD 02. Single Parcel IMPACT ON TAX BASE - ISD #14 - Single Parcel TAX % OF TAX TAX RATE RATE TOTAL INCREMENT INCREASE ENTITY 0.32258 32.45% 484 0.002% City of Fridley 0.35189 . 3539% 528 0.000% County of Anoka 0.24398 24.54% g 0.002% ISD #13 0.07578 7.6210 114 Other 0.99423 100.00% _ 1,491 IMPACT ON TAX BASE - ISD #14 - Single Parcel IMPACT ON TAX BASE - ISD #16 - Single Parcel TAX % OF TAX TAX RATE RATE TOTAL INCREMENT INCREASE ENTITY 0.32258 28.34% 484 0.002% City of Fridley 0.35189 30.92% 528 0.000% County of Anoka 0.38795 34.08% 582 0.004% ISD #14 0,07578 6.66% 114 Other 1.13820 100.00% 1,707 IMPACT ON TAX BASE - ISD #16 - Single Parcel * Assumes construction would have occurred without the creation of a Tax Increment Financing District. If construction is a result of Tax Increment Financing, the impact Is $0. 1 -B -1 4850 -6612 -2503 TAX % OF TAX TAX RATE RATE TOTAL INCREMENT INCREASE ENTITY 0.32258 30.24% 484 0.002% City Of Fridley 0.35189 _ 32.67% 528 0.000% County of Anoka 0.31654 .6 297% 475 0.001% ISD #16 0.07578 7.10% 114 Other 1.06679 1 1,600 * Assumes construction would have occurred without the creation of a Tax Increment Financing District. If construction is a result of Tax Increment Financing, the impact Is $0. 1 -B -1 4850 -6612 -2503 EXHIBIT I - B ESTIMATED IMPACT OF HOUSING REPLACEMENT DISTRICT NO.1 All 78 Parcels IMPACT ON TAX BASE - All 78 Parcels IMPACT ON TAX BASE - ISD #11 - All 78 Parcels ENTITY TAX RATE ORIGINAL ESTIMATED CAPTURED DISTRICT 0.32258 TAX TAX TAX TAX AS % ENTITY BASE CAPACITY CAPACITY CAPACITY OF TOTAL City of Fridley 26,556,023 39,000 156,000 117,000 0.441% County of Anoka 295,039,609 39,000 156,000 117,000 0.040% ISD #11 184,421,984 39,000 156,000 117,000 0.063% ISD #13 18,547,967 39,000 156,000. 117,000 0.631% ISD #14 13,272,880 39,000 156,000 117,000 0.881% ISD #16 36,129,220 39,000 156,000 117,000 0.324% IMPACT ON TAX BASE - ISD #11 - All 78 Parcels ENTITY TAX RATE % OF TOTAL TAX INCREMENT TAX RATE INCREASE City of Fridley 0.32258 33.97% 37,742 0.143% County of Anoka 0.35189 37.06% 41,171 0.0140/6 ISD #11 0.19939 21.00% 23,329 0.013% Other 0.07578 7.98% 8,866 0.155% Other 0.94964 100.00% 111,108 IMPACT ON TAX BASE - ISD #12 - All 78 Parcels �\ TAX % OF TAX TAX RATE ENTITY RATE TOTAL INCREMENT INCREASE City of Fridley 0.32258 32.45% 37,742 0A43% County of Anoka 0.35189 35.39% 41,171 0.01411/6 ISD #13 0.24398 •24.54% 28,546 0.155% Other 0.07578 7.62% 8,866 0.99423 100.00% 116,325 IMPACT ON TAX BASE - ISD #14 - All 78 Parcels TAX % OF TAX TAX RATE ENTITY RATE TOTAL INCREMENT INCREASE City of Fridley 0.32258 28.34% 37,742 0.143% County of Anoka 0.35189 30.92% 41,171 0.014% ISD #14 0.38795 34.08% 45,390 0.345% Other 0.07578 6.66% 8,866 1.13820 100.00% 133,169 IMPACT ON TAX BASE - ISD #16 - All 78 Parcels ENTITY TAX RATE % OF TOTAL TAX INCREMENT TAX RATE INCREASE City of Fridley 0.32258 30.24% 37,742 0.143% County of Anoka 0.35189 32.99% 41,171 0.014% ISD #16 0.31654 29.67% 37,035 0.103% Other 0.07578 7.10% 8,866 1.06679 100.00% 124,814 Assumes construction would have occurred without the creation of a Tax Increment Financing District. If construction is a result of Tax Increment Financing, the impact is $0. I -B -2 4650-6612 -=3 EXHIBIT 1- B ESTIMATED IMPACT OF HOUSING REPLACEMENT DISTRICT NO. 1 SINGLE PARCEL ONLY -ISD #11 IMPACT ON TAX BASE IMPACT ON TAX RATE TAX ORIGINAL ESTIMATED CAPTURED DISTRICT I T TAX RATE TOTAL TAX CAPACITY TAX CAPACITY TAX CAPACITY AS OF TOTAL ENTITY BASE 500 2000 1,500 0.006% City of Fridley 26,556,023 500 , 2,000 1,500 0.001% County of Anoka 295 039 60 9 500 2,000 1,500 0.001% ISD #11 184,421,984 100-00% 424 IMPACT ON TAX RATE * Assumes construction would have occurred without the creation of a Tax Increment Financing District. If construction is a result of Tax Increment Financing, the impact is $0. I -B -3 TAX % OF TAX TAX RATE RATE TOTAL INCREMENT INCREASE ENTITY 0.32258 33. 97% 484 0.002% City of Fridley 0.35189 37.97% 528 0.000% County of Anoka 0.19939 21.00% 299 0.000% ISD #11 0.07578 7.98% 114 Other 0.94964 100-00% 424 * Assumes construction would have occurred without the creation of a Tax Increment Financing District. If construction is a result of Tax Increment Financing, the impact is $0. I -B -3 EXHIBIT I - B ESTIMATED IMPACT OF HOUSING REPLACEMENT DISTRICT NO. 1 SINGLE PARCEL ONLY - ISD #13 IMPACT ON TAX BASE IMPACT ON TAX RATE TAX ORIGINAL ESTIMATED CAPTURED DISTRICT RATE TAX TAX TAX TAX AS % ENTITY BASE CAPACITY CAPACITY CAPACITY OF TOTAL City of Fridley 26,556,023 500 2,000 1,500 0.006% County of Anoka 295,039,609 500 2,000 1,500 0.001% ISD #13 18,547,967 500 2,000 1,500 0.008% IMPACT ON TAX RATE * Assumes construction would have occurred without the creation of a Tax Increment Financing District. If construction is a result of Tax Increment Financing, the impact is $0. I -B -4 TAX % OF TAX TAX RATE ENTITY RATE TOTAL INCREMENT JNCREASE City of Fridley 0.32258 32.45% 484 0.002% �..� County of Anoka 0.35189 . - 35.39% 528 0.000% ISD #13 0.24398 24.54% 366 0.002% Other 0.07578 • 7.62% 114 0.99423 100.00% 1,491 * Assumes construction would have occurred without the creation of a Tax Increment Financing District. If construction is a result of Tax Increment Financing, the impact is $0. I -B -4 EXHIBIT 1- B ESTIMATED IMPACT OF HOUSING REPLACEMENT DISTRICT NO. 1 SINGLE PARCEL ONLY - ISD #14 IMPACT ON TAX BASE IMPACT ON TAX RATE TAX ORIGINAL ESTIMATED CAPTURED DISTRICT I T TAX RATE TOTAL TAX CAPACITY TAX CAPACITY TAX CAPACITY AS OF_ TOTAL ENTITY BASE 500 2,000 1,500 0.006% City of Fridley 26,556,023 500 2,000 1,500 0.001% County of Anoka 295,039,609 500 2,000 1,500 0.011% ISD #14 13,272,880 _ 100.00% 1,707 IMPACT ON TAX RATE * Assumes construction would have occurred without the creation of a Tax Increment Financing District. if construction is a result of Tax Increment Financing, the impact is $0. I - B - 5 '�1 TAX % OF TAX TAX RATE RATE TOTAL INCREMENT ENTITY 0.32258 28.34% 484 0.002% City of Fridley 0.35189 30.92% 528 0.000% County of Anoka 0.38795 34.08% 582 0.004% ISD #14 0.07578 6.66% _--114 Other 1.13820 _ 100.00% 1,707 * Assumes construction would have occurred without the creation of a Tax Increment Financing District. if construction is a result of Tax Increment Financing, the impact is $0. I - B - 5 '�1 EXHIBIT I - B ESTIMATED IMPACT OF HOUSING REPLACEMENT DISTRICT NO. 1 SINGLE PARCEL ONLY - ISD #16 IMPACT ON TAX BASE IMPACT ON TAX RATE TAX ORIGINAL ESTIMATED CAPTURED DISTRICT RATE TAX TAX TAX TAX AS % ENTITY BASE CAPACITY CAPACITY CAPACITY OF TOTAL City of Fridley 26,556,023 500 2,000 1,500 0.006% County of Anoka 295,039,609 500 2,000 1,500 0.001% ISD #16 36,129,220 500 2,000 1,500 0.004% IMPACT ON TAX RATE * Assumes construction would have occurred without the creation of a Tax Increment Financing District. If construction is a result of Tax Increment Financing, the impact is $0. 1 -B -6 TAX % OF TAX TAX RATE ENTITY RATE TOTAL INCREMENT INCREASE City of Fridley 0.32258 30.24% 484 0.002% n County of Anoka 0.35189 32.99% 528 0.000% ISD #16 0.31654 29.67% 475 0.001% Other 0.07578 7.10% 114 1.06679 100.00% 1,600 * Assumes construction would have occurred without the creation of a Tax Increment Financing District. If construction is a result of Tax Increment Financing, the impact is $0. 1 -B -6 EXHIBIT 1 -C OF FRID Housi Original Market Values 78 arcels $ 50,000 r Parcel = $ 3 Ori inal Land Value $ 3 Total Original Market Value 3,900,000 Orig MV @ 1.00% Class Rate = Original Tax Capacity 78 units @ 200,000 per unit = Estimated Market Value 78 units @ 2,000 per unit = + Estimated Tax. Capacity Estimated Tax. Increment - annual 78 units @ 1,400 19,683 per unit = per unit = Estimated Tax Increment -Total PV 78 units @ i ISD #11 ISD #12 ISD 414 ISD #16 Local Tax Rate 0.32258 0.32258 � 0.32258 0.32258 City of Fridley 0.35189 51 0.35189 0.35189 0.35189 County of Anoka 0, 0.24398 0.38795 0.31654 ? ISD 0.07578 0.07578 0.07578 0.07578 Other 6 Cities WMO 0.99423 ----- -----' 1.13820 1.06679 t Total Local Tax Rate 0.94964 7 Admin Fees 10.00% State Auditor,Fee 0.000% Inflation (after 2 yrs of full value) 2.50% i Present Value.Rate 6/1/2011 3.50% I-C -1 HRP 2010b.xls 15,600,000 1._ 56,0001 109,219 1,535,253 1.037221 I 3 E EXHIBIT 1 -C - continued CIT`f OF FRIDLEY I Housing Replacement Program CASH FLOW AND PRESENT VALUE ANALYSIS < ANNUAL > < - SEMI - ANNUAL ! (a) I. (b) (c) (d) (e) (fl (9) (h) Original Estimated Captured Est. T. I. Less: Available Cumulative s . Tax Tax Tax (d} x Admin Tax Avail. Tax Date Capacity I Capacity Capacity 1.03722 Fees Increment Increment see assumptions c - b - St. Aud. Fee (e ) x e - (f} Total of g H i 2.5%1 Inflation (prey. year) 0.000% 10.00% ' 06/01/10 39,000 39,000 0 0 0 0 12/01/10 39,000 39,000 0 0 0 0 06/01/11 12/01/11 39,000 39,000 39,000 39,000 0 0 0 0 0 0 0 0 0 0 06/01/12 39,000 156,000 0 0 0 0 0 12/01/12 39,000 156,000 0 0 0 0 0 1 06/01/13 39,000 156,000 117;000 60,677 6,068 54,610' 54,610. 12/01/13 39,000 156,000 117,000 60,677 6,068 54,610 109,219 2 06/01/14 39,000 159,900 117,000 60,677 6,068 54,610 163,829 12/01/14 39,000 159,900 1171 000 60,677 6,068 54,610 218,439 f 3 06/01/15. 39,000 163,898 120,900 62,700 6,270 56,430 274,868 ' 12/01/15 39,000 163,898 120,900 62,700 6,270 56,430 331,298 4 06/01/16 39,000 167,995 124,898 64,773 6,477 58,296 389,594 12/01116 39,000 167,995 124,898 64,773 6,477 58,296 447,890 5 06/01/17 39,000 172,195 128,995 66,898 6,690 60,208 508,098 12/01/17 39,000 172,195 128,995 66,898 6,690 60,208 568,307 E 6 06/01/18 _ 39,000 176,500 133,195 69,076 6,908 62,169 _ 630,475 12101/18 39,000 176,500 133,195 69,076 6,908 62,169 6-92,644 7 06/01/19 39,000 180,912 137,500 71,309 7,131 64,178 _ 756,821 ' 12/01/19 39,000 180,912 137,500 71,309 7,131 64,178 820,999 8 06/01/20 39,000 185,435 141,912 73,597 7,360 66,237 887,237 12/01/20 39,000 185,435 141,912 73,597 7,360 66,237 953,474 9 06/01/21 39,000 190,071 146,435 75,943 7,594 68,348 1,021,822 12/01/21 39,000 190,071 146,435 75,943 7,594 68,348 1,090,171 10 06/01/22 39,000 194,823 151,071 78,347 7,835 70,512 1,160,683 12/01/22 39,000 194,823 151,071 78,347 7,835 70,512 1,231,195 11 06/01/23 39,000 199,693 155,823 80,811 8,081 72,730 1,303,925 12101/23 39,000 199,693 155,823 80,811 8,081 72,730 1,376,655 12 06/01 /241 - 39,000 204,686 160,693 83,337 8,334 75,003 1,451,659 12/01/24 39,000 204,686 160,093 83,337 8,334 75,003 1,526,662 13 06/01125. 39,000 209,803 165,686 85,926 8,593 77,334 1,603,996 12/01125 39,000 209,803 165,686 85,926 8,593 77,334 1,681,329 114 06/01/26 39,000 215,048 170,503 88,580 8,858 79,722 1,761,051 12/01/26 39,000 215,048 170,803 88,580 8,858 79,722 1,840,773 15 06/01/27 39,000 220,424 176,048 91,300 9,130 82,170 1,922,943 12/01/27 39,000 220,424 176,048 91,300 9,130 82,170 2,005,1131 16 06/01%28 39,000 225,935 181,424 94,088 9,409 84,679 2,089,793 12/01128 39,000 225,935 181,424 94,088 9,409 84,679 2,174,472 2,416,0801 241,608 2,174,472 2,174,4721 RP ?(11(lh__rlg - r -C -2 S AMC INFORMATIONAL ITEM ri HRA MEETING OF OCTOBER 7, 2010 CITY OF FRIDLEY linfc• 0 .... +....1...._ nn nnwn --- - -- vv J,­. %,rl LV, L.V IV To: William Burns, City Manager From: Paul Bolin, Asst. Executive HRA Director Subiect: Home Improvement Demonstration Proiect UDdate 831 Mississippi Street Like all other homes for sale in Fridley, the home is seeing very little traffic. There have been 2 showings of the property since the last HRA meeting. After meeting with our realtor and further reevaluating the market, the asking price of the home has been reduced to $189,900 to be more competitive in this dismal market. Potential Remodels Staff has continued to work with Lennox Builders and Counselor Realty's Van Auken team to select the next project home. Our goal is to purchase a home that can be renovated and still stay within the price points for the neighborhood. You will recall that we are currently looking for another rambler and a split level home to continue the program. We are looking at ramblers that can easily by redesigned for "1 level living ". The home will demonstrate changes residents can make to their homes allowing them to stay in the home as they age. Changes will include relocating the laundry to the main floor, widening doorways and hallways to accommodate walkers or wheelchairs, changing fixture and/or counter top heights and design, and other modifications to make the home function on 1 level. Staff has found a rambler on the 4700 block of 2nd Street that appears to be a great candidate for 1 -level living. At the time of writing this memo, staff is waiting to get remodel cost numbers and preliminary drawings back from Lennox Builders. Staff will meet with Lennox and Tim Van Auken to determine if this home can be renovated and stay competitive in the marketplace for resale. I will be able to provide a more detailed update at next Thursday's meeting. Finding a good split level home for the program has been a bit more challenging. Many of the split levels we have found to be affordable are center loaded and would require a great deal of expense to move stairways or have had some significant structural defects. We continue to look and are optimistic that we will find a suitable split level soon. �-. Fridley HRA Housing Program Summary Cover Page October 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 September and year -to -date. Loan originations for September 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 Items\20I0 \October 7, 201 Mousing Program CoverOct.doc N � C � R N J U N 0 .0 o a R r, u _ a .Q' c CL L Qa d O i c N i C � R � J C N _ O I .M � � I al Q. 0C ate! N O l •rr 'Q . ca Z Q f CD EO N E O v♦ L O O °' 3: >% M co CL LL a L 7 0 0 0 0 0 0 0 0 0 0 i 3 U.) N O O O O r 0 0 0 i v C 3 0 U N w = O V V LL 3 a w � C LL =' R L- O O R e= 0 IL IJi J .Q LL a c C J Q' C E E = c�cw 75 2 d�EEdRC:° 0)iL`L13U. 0 0 d LLLLLLLLLLL. QLw � LLLL() �pCS222w .SO 225122mc�amc M r d N 3 Q. M R G1 t co R 0 3 an O a to L- CD O CD L2 O 0 Q. _ O 0 R O r.+ _ O w w v d _ O E 0 N w O r O �F+ F R v Q. M R G1 t co R 0 3 an O a to L- CD O CD L2 O 0 Q. _ O 0 R O r.+ _ O Y R y.+ O C N N 0 O r a F O 0 c d N N C O cc 0 Q Q. R O d E Z �-. Fridley HRA Loan Origination Report September 30, 2010 Loan Originations This Previous Month Months HRA Loans (incl. CFUF Discount lc 3 8 HRA Deferred Loans Other Loans (non -HRA) 2 Total 3 10 Funding Sources Since 1/1/2010 11 2 13 Since 111/2010 78,264.00 61,785.92 936.65 4,000.00 144,986.57 Since 1/1/2010 Single Family 3 10 This Duplex Previous 13 Td -Plex Month - Months Fridley HRA $ 37,927.00 $ 40,337.00 $ MHFA FUF /CFUF $ - $ 61,785.92 Fridley Discount portion for CFUF Types of Improvements $ $ Met Council $ _ $ 936.65 $ CDBG/HOME $ _ $ $ CEE Other $ - $ $ 4,000.00 $ 5 $ Basement finish $ 0% Insulation 0% Room addition Total $ 37,927.00 $ 107,059.57 $ Types of Units Improved* _ 0% 'some households receive more than 1 loan, so the # of loans may not equal # of units improved This Previous Roofing 1 Month Windows/Doors Months Since 1/1/2010 11 2 13 Since 111/2010 78,264.00 61,785.92 936.65 4,000.00 144,986.57 Since 1/1/2010 Single Family 3 10 Duplex 13 Td -Plex - 4 to 9 Units 10 to 20 Units _ - 20+ Units - Total 3 10 13 Types of Improvements Interior # of Projects % of Total Bathroom remodel Kitchen remodel 0% General plumbing 1 7% Heating system 0% Electrical system 5 35% Basement finish 0% Insulation 0% Room addition 0% Misc. interior projects 0% Foundation _ 0% 0% Exterlor Siding/Fascia/Soffit Roofing 1 7% Windows/Doors 1 7 7 % Garage 4 % Driveway /sidewalk 1 7% Landscaping 0% i� Misc. exterior projects 0% 2 14% 0 N V L O I' El Qi G� O E UL I.L. O r O N O M L E d CL 0 cn Vokwne FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY October 7, 2010 Ip =as s :oo 3ir R001 11 1. Northstar We have received some encouraging news from Metro Transit. They are looking to start a new bus route connecting Fridley employers with the train. They are applying for a Federal Jobs Access Reverse Commute QARC) grant. The proposed route would meet each weekday train and provide service to Medtronic, Cummins, Unity and other employers located along the proposed route. 2. The Waters of Fridley Trident Development, St. Cloud, is currently working on their civil engineering plans. The groups still plans to break ground on the project before the end of the year. 3. Faulkner Development The high water table and sewer location issues mentioned last month have now been resolved. Footings are going into place and we should see walls being erected within the next 2 weeks. 4. Mowing Contract Staff has had an opportunity to review the mowing contract charges for the past 2 years and compare those costs to the City Parks Department estimates for the same properties. At this time, the cost to have City Parks staff mow the HRA properties is over 2X the cost of having Complete Grounds Maintenance do the work. In 2009, the HRA paid Complete Grounds Maintenance a total of $8,928 to mow our parcels. In a very rainy 2010, after adding more area along University Avenue and 831 Mississippi, the HRA has paid Complete Grounds Maintenance a total of $11,334.09. The estimates from the City Parks Staff are $35,000 for weekly mowing (20 cycles estimated), or for approximately $20,000 bi- weekly (11 cycles estimated). I plan to meet with City Parks Staff to further discuss their cost estimates prior to bringing a recommendation forward at a future HRA meeting. 5. Columbia Arena Property owner Bill Fogerty is working with Ebenezer Homes on a potential retrofit of the Arena into 83 senior living units. City Staff anticipates receiving a formal special use permit and variance request application on October 1. 9/28/2010 Property Full Report, Single Family Residential, MLS#: 3564333 434 Liberty Street NE, Fridley, MN 55432 -1660 Type: For Sale Status: Active List Price: $74,800 OLP: $74,500 MLS Area: 768 - Fridley Style: (SF) One Story Canst Status: previously Owned Foundation Size: 776 Above Ground Finished SgFt: 776 Below Ground Finished SgFt: 0 Total Finished SgFt: 776 Raplds Map Page: 78 Map Coord: C2 }tgo ave- { I Directions: East River Rd to Liberty ° tom` (West) �_.. � _ ... : }..__..934._EibertyStri st . ._ F tk: j t . __ _,.. ` ... 0 Mn R l� 0 � ON �zQio6ckrosoacuN�napAViegi�ga� �gPhs�mo.�.._... Year Built: 1548 TAX INFORMATION Bedrooms: 2 Property ID: 033024310077 Total Baths: 1 Tax Year: 2010 Garage: 0 Tax Amt: $1,280 Acres: 0.31 Assess Sal: $929 Lot Size: N90 *150 Tax Wassess: $1,409 Fire #: Assess Pend: Yes List Date: 8128/10 Received By MLS: 8/28110 Days On Market: 33 Homestead. Yes General Property information Legal Description: Spring Brook Park County: Anoka School District: 14 - Fridley, 763 -502 -5000 Mfg Home w /HUD ID #: No Complex/Dev /Sub: Common Wall: No Restdctions/Covts: Road Frontage: Kitchen Zoning: Residential - Single Accessibility: None Remarks Bedroom 1 Agent Remarks: Home Is a REO prop sold as repaired. See supps for req. forms All Info and sizes are approx. Fax offers to 952487 -2333. Use attached PA only For more Info see Homesteps.com. Public Remarks: 2 Bedroom 1 bathroom home with porch. New carpet, Interior paint and new rooft Structure Information Room Lev-9-1 imen Other Rooms Level Dimen Living Rm Main 12x20 Porch Main 18x12 Dining Rm Main 9x12 Family Rm Kitchen Main 12x8 Bedroom 1 Main 12x11 Bedroom 2 Main 12x6 Bedroom 3 Bathrooms: Total: 1 Full: 1 Bedroom 4 3/4:0 1/2: 0 1/4:0 Bath Description: Main Floor Full Bath Dining Room Desc: Family Room Char: Fireplaces: 0 Fireplace Characteristics: Appliances: Basement: None Heat: Forced Air Fuel: Natural Gas Air Cnd: Central Water: City Water - Connected Sewer: City Sewer - Connected Garage Stalls: 0 Garage Stall #: Other Parking: Pool: Information Deemed Reliable But Not Guaranteed. 0 2010 Regional MLS of Minn., Inc. All Rights Reserved. Page 1 of 1 9/28/2010 Property Full Report, Single Family Residential, MLSM 3964333 434 Liberty Street NE, Fridley, MN 68432 -1660 Type: For Sate Exterior: f=iber Board Fencing: Roof: Amenities -Unit: Porch Parking Char: None Financial Cooperating Broker CpMR90sattan Buyer Broker Comp: 3.00001 Sub Agent Comp: 0 % Facilitator Camp: 0 % Variable Rate: N List Type: Exclusive Flight In Foreclosure ?: No Lender Owned ?: Yes Potential Short Sale ?: No Owner is an Agent ?: No Sellers Terms: Existing Fin: Listing Agent: Richard 0 Stanton 9622400.1030 Listing office: Minnesota REO Properties, Inc Appt Phone: 962400.1430 Office Phone: 962400.1030 This Report Prepared By: Tim Van Auken - CDPE 612- 644.6017 Information Deemed Reliable But Not Guaranteed. 0 2010 Regional MLS of Minn., Inc. Alf Rights Reserved,