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HRA 12/02/2010 - 6259December 2, 2010 "r 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 November 4, 2010 Meeting Minutes 3. Approval of Scattered Site Phase V TIF District Informational Items 11—� 1. Home Remodeling Demonstration Program 2. 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(a C �' (D of Cn IL O C M Co CO I- t ` W N y .0 CD CD CO m C C6 O 0 CO C_ C O N N O m y N aCCCC O > Co z 4) U U U N .d L .0 N C._ CO > O � > > P > 7 7 O CO N O lU 0 0 0 p .2 CO P IL a a a � �=2-zzz z rJ�¢ wz( v o N z N O r O cP O M V O Cs CD co CD LO co tC) Co O P O P t0 P E C`O N cm E O C IL O C > O O p7 U w C c c N co w O W C U Lam.. c = c o o o cn w > o a) (D a o = c 5 m Y Imo- N H E' N N U N U N N N N N O D N C U .1 0 LL X m U N C>D W Cl N 1- P M Co N N N P N N P N N N N N N N O O O OP O O O O O O O O P Co O O O O O O O CD O N N N N N N N N N N N P P P P P P P P CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION NOVEMBER 4, 2010 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:01 p.m. ROLL CALL: MEMBERS PRESENT: MEMBERS ABSENT: NONMEMBERS PRESENT: ACTION ITEMS: 1. Approval of Expenditures Pat Gabel Larry Commers Stephen Eggert John Meyer William Holm Paul Bolin, HRA Assistant Executive Director Becky Kiernan, Accountant MOTION by Commissioner Eggert 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 October 7, 2010 Meeting Minutes MOTION by Commissioner Gabel to approve the minutes as presented. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 3. Approval of 2011 HRA Meeting Dates MOTION by Commissioner Eggert to approve the 2011 HRA Meeting Dates. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Approval of Home and Garden Show Administrative Contact Paul Bolin, HRA Assistant Executive Director, said that Fridley has been the fiscal agent for the Home and Garden Show for 13 years. (Blaine & Mounds View) Revenues from booth rental cover expenses for the show. Since 2005, the Home and Garden Show has contracted with Marsha Wagner of Castle Visions to perform all administrative tasks for the show. Her work has been excellent and much appreciated by all. Staff recommends approval of the contract authorizing Castle Visions to perform the administrative work for the 2011 Home and Garden Show. Commissioner Gabel asked about the $2,000 profit and how that money was handled. Mr. Bolin said that money was put back into the HRA General Fund. If this event were to fall short in the years to come, HRA has funds to make up for any shortfall. These funds are tracked year to year. Chairperson Commers asked on the last page of the contract if the termination date should be changed to 2011. Mr. Bolin said that is correct. Commissioner Meyer asked if this contract is the same as last year. Mr. Bolin said that is correct, this contract has not changed in the last five years. MOTION by Commissioner Eggert to approve the Home and Garden Show Administrative Contract. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 5. Approval of Demolition Contract — Housing Replacement Program (HRP) Paul Bolin, HRA Assistant Executive Director, said that the April Legislation reauthorized the Housing Replacement Program. This program allows HRA to purchase up to 78 more properties to demolish/rehab and place into a multi - phased scattered site TI District. These homes can be constructed or improved up to 150% of the average home value. HRA will hold a hearing on TI District Creation on December 2 "d, Council will hold a hearing and take action on December 13t ". The first two properties have been purchased and are ready for demolition. Mr. Bolin said that a formal bid process is not required but the City Public Works Department ran a formal bid process on our behalf. The bids opened at LOAM on November 3rd and one bid was received from Frattalone Company for $ 26,734. This bid price was lower than staff estimates. Staff recommends the contract be awarded to Frattalone Company in the amount of $26,734. Frattalone Company will be able to complete demolition in the desired timeframe. Commissioner Gabel asked about the home that was filled with garbage and asked if they would be able to separate the hazardous waste materials. Mr. Bolin said that in the past few years the environmental regulations have really tightened up, and all hazardous waste, down to the caulking around the windows, will be removed. Chairperson Commers asked if the property on Fairmont would be done at the same time. Mr. Bolin said that the bid is for both properties. Chairperson Commers asked if a public hearing would be needed each time a home was added. Mr. Bolin said that the way the HRP TIF plan is being restated and amended, the HRA would not have a Public Hearing and this would allow staff to adopt properties in a quicker fashion down the road. It will allow the HRA to add parcels by motion or resolution. Commissioner Meyer asked if there was any insight as to why there was only one bidder. Mr. Bolin said that contractors may have looked at the detail that was needed and did not want to put the effort into the bid. Commissioner Meyer asked if the city was excessive in the bid request. Mr. Bolin said that based on a few comments that were received; smaller contractors were not as interested in putting work into a bid as detailed as ours. Commissioner Gabel asked if that type of detail was needed for the city's protection. Mr. Bolin said that is correct, the hazardous materials need to be properly addressed. MOTION by Commissioner Gabel to approve the Demolition Contract for the Housing Replacement Program. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS: 1. Housing Remodeling Demonstration Program Paul Bolin, HRA Executive Assistant Director, said that the home on Mississippi Street had one showing this past month. The current market is not good and people are not buying right now. Staff will continue to watch the market and if adjustments need to be made with the pricing they will come back to the Authority. There is an opportunity to coordinate the home on Second Street with this remodel. Chairperson Commers asked when the home on 2nd Street was built. Mr. Bolin said the home was built in 1959 with the addition put on in the late 80's, early 90's_ Commissioner Eggert asked what the availability was of other homes. Mr. Bolin said that every day staff is looking at more homes. These past months not as many have been coming on the market so it is slowing down; lately not much is available. Both the Mississippi Street home and the project on Second Street could be put in the Housing Replacement Program to help recover some costs. Special legislation allows tear down or to rehabilitate the home; that way if there was a short fall on any of these remodels it would be covered. 2. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said that in October two RLF loans were closed and one Deferred loan was also closed. This makes a total of 16 loans year to date. There were no Remodeling Advisor Visits and the total year to date is 12. NONAGENDA ITEMS: Waters of Fridley Trident Development, St. Cloud, continues to slowly move forward. The group still plans to break ground on the project before the end of the year. Faulkner Development There have been discussions of the relocation of sanitary sewer lines and how to do it; they have come up with a plan on the best way to proceed. The building permit has been picked up, footings are in place and typical building construction should start to happen next week. HRP Acquisitions Staff has negotiated the purchase of the vacant parcel at 434 Liberty Street. The home is in on a combination of slab and crawl space and contains mold on the interior. The home will be demolished after the Authority takes possession in late November and has had the hazardous materials review completed. Chairperson Commers asked if this parcel would be included with the other two parcels. Mr. Bolin answered no; this is another one where there were title issues and staff had to extend the closing dates. Staff will bring this back in January for inclusion. Columbia Arena Bill Fogerty is working with Ebenezer Homes on retrofitting the arena into 83 senior living units. There will be drastic changes to the exterior of the building with windows and dormers. The units will be lined up on the exterior of the building with large courtyard areas in the middle of the building. On November 17, they will go before the Planning Commission to request a /'� Special Use Permit and variance for the existing building. Colored drawings will be presented at that meeting for those who would like to attend. Chairperson Commers asked what the 83 senior units would look like. Mr. Bolin said there would be a mix of units; smaller units with the bulk having one bedroom, assisted living and different levels of care for dementia and Alzheimer's disease. Chairperson Commers asked if there would be congregate dining. Mr. Bolin answered yes. GWNE Things are progressing, as of right now there are no title issues and the properly is set to close on November 19. The bid process for demolition of the Tae Kwan Do, Sikh Society Building and Select Comfort Building should take place during the month of January. Staff will bring forward a recommendation for a demolition contractor to the HRA's February meeting. Demolition will begin around the first of March and be completed prior to the road restrictions going into place. Mr. Trooien There was an article regarding Mr. Trooien filing chapter 11 bankruptcy in the Star Tribune. This information is distributed for informational purposes as Mr. Trooien is the property owner of the 25 acre vacant parcel on 694 and East River Road. This is a large parcel in the tax increment district and when developed it will be a revenue generator. The title is in the JLT group which is one of his companies. It is unclear if this property is involved in the reorganization. Northstar There will be a news release tomorrow in the paper about the Northstar Executive Committee's meeting this afternoon. They are in the process of processing the application for federal funding for phase two service from dig Lake to St. Cloud. Originally it was top priority to make this link happen but with the economkrecession and the high unemployment iRa===ce rates they have not seen usage of the Northstar as they had hoped to see. Because of this the Northstar will not go forward with the application ate until ridership is built up. The focus will continue to be on increasing ridership and they will keep the bus link from St. Cloud to Big Lake. Northstar will be offering some free ridership days for people in the viewing area to ride the Northstar; Tuesday November It and Wednesday November 17. Volunteers will be available to help people through the process and they hope to generate ridership. A pilot project will be started later this month to offer a midday bus on Fridays. There has been a drop in ridership on Fridays because some people only work a 1/z day on Friday and did not have an option to get home. A bus will tie people ®®1 � at Ipm on Fridays and will only stop in Fridley if people need to get off. Any e interested can find more information on Fridley's website and link to Metro Transit. \\ Q Twin Cities Community Capital Fund Being Closed Down This program is a way for cities to loan to businesses for gap funding. The program started in 1993 with the MN Community Capital Fund. This started with outstate cities and then the 503 nonprofit group was formed. Any community can join this statewide group. If Fridley wanted to become a member they could deposit any amount of funds, like $20,000, which would allow Fridley to loan out 10 times that amount. If the economy turns around the program would be more viable. Legislation is being worked on at the State level to give guarantees on these loans and this would be a tool for Fridley to use for businesses who want to relocate to Fridley or expand. ADJOURNMENT: MOTION by Commissioner Eggert to adjourn. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:05 P.M. Respectfully Submitted, Krista Monsrud, Recording Secretary W AWV ACTION ITEM HRA MEETING OF DECEMBER 2, 2010 MY of FRIDLEY uate: November 24, ZU1U To: William Burns, City Manager From: Paul Bolin, Asst. Executive HRA Director Subject: Scattered Site Housing Replacement Phase V Creation Attached for Authority consideration is a resolution approving Phase V of the Housing Replacement Program's (HRP) scattered site tax increment - financing district. Once a parcel is included in the district, the HRA collects tax increment for a period of 15 years The increment is used to help cover some of the costs of the program (ie. acquisition, demolition, property maintenance, etc.). Unlike a traditional tax increment district, the HRP is less cumbersome to administer and changes to the TIF Plan will further streamline the process for adding parcels to the program. ,..� Since the program originally began in 1995, the City approved four phases (1995, 1997, 2001, and 2004) for a total of 22 properties prior to the program expiring in 2004. Under special legislation approved in April 2010, the City can designate up to 100 total parcels, inclusive of the 22 properties already in the program. As a final note, the will be asked to approve Phase V of the program at their December 13, 2010 meeting. Attached to this cover memo you will find a previously provided memorandum from Attorney Casserly outlining the changes found in the TIF Plan, an updated chronology for the creation of Phase V of our housing replacement district and a copy of the restated housing district plan. The restated plan will give the HRA the flexibility to simply add parcels, by resolution, without the expense and time delays caused by notifications and hearings for each parcel added in the future. Recommendation Staff recommends that the Authority approve the attached resolution amending the Housing Replacement Program to include Phase V. HRA RESOLUTION NO. RESOLUTION APPROVING AND ADOPTING A RESTATED HOUSING REPLACEMENT DISTRICT PLAN FOR HOUSING REPLACEMENT DISTRICT NO. 1 INCLUDING PHASES I -IV AND APPROVING AND ADOPTING PHASE V FOR HOUSING REPLACEMENT DISTRICT NO.1 BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority ") as follows: j Section 1. Recitals. 1.01. It has been proposed that the Authority approve and adopt a Restated Housing Replacement District Plan for Housing Replacement District No. 1 (the "Plan ") and adopt Phase V to Housing Replacement District No. 1 (the "District "), pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047 and 469.174 to 469.1799, inclusive, as amended and supplemented. This proposal is also pursuant to the original statutory authority provided by Laws of Minnesota 1995, Chapter 264, Article 5, Sections 44 through 47 in which the Housing Replacement District Plan was originally 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 2010, Chapter 216, Section 42. 1.02. The Authority has performed all actions required by law to be performed prior to the approval and adoption of the Plan and expansion of the District. 1.03. The Authority hereby determines that it is necessary and in the best interests of the City and the Authority at this time to approve and adopt the Plan and Phase V for the District to achieve the Authority's and Gity's goal for acquiring blighted, undeveloped, or underdeveloped parcels for redevelopment or rehabilitation, and for resale as market rate housing. Section 2. Findings. 2.01. The Authority hereby finds that the adoption and implementation of the Plan is necessary to assure the development and redevelopment of market rate housing within the City. 2.02. The Authority hereby finds that the Plan conforms to the comprehensive plan of the City for the development and redevelopment of the City as a whole. 2.03. The Authority hereby finds that the Plan affords maximum opportunity consistent with the sound needs of the City as a whole for development and redevelopment within the District by private enterprise. 2.04. The Authority hereby finds that the approval and adoption of the Plan and Phase V to the District is intended and, in the judgment of this Authority, its effect will be to promote the public purposes and objectives specified in the Plan. Section 3. Approval and Adoption of the Plan. 3.01. The Restated Housing Replacement District Plan including Phases I -IV is hereby approved and adopted by the Commissioners of the Authority. Section 4. Approval of Phase V to the District. 4.01, Phase V to the Housing Replacement District No. 1 is hereby approved and adopted by the Commissioners of the Authority. Section 5. Filing of Plan. 5.01, Upon approval and adoption of the- Plan, the Aaftr"hall cause- said- Plwtzrb-f-- filed with the Minnesota Department of Revenue, the Office of State Auditor and Anoka County. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS DAY OF , 2010. ATTEST: William W. Burns, Executive Director MMB: 48444368 -7176, v. 1 2 Lawrence R. Commers, Chairman CITY OF FRIDLEY PROPOSED CHRONOLOGY FOR (1) ADOPTION OF RESTATED HOUSING REPLACEMENT DISTRICT PLAN FOR HOUSING REPLACEMENT DISTRICT NO. 1 INCLUDING PHASES I -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, NOVEMBER 8, 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 [-IV (2) adopt Phase V of Housing Replacement District No. 1 Revised November 1, 2010 MMB: 4829 -3829 -9911, V. 1 MONROE MEXNE88 13ERG James R. Casserly Jcasserly@mmblawfirm.com Direct 962.885.1296 Greg D. Johnson gjohnson@mmblawflrm.corn Direct 962.888.6994 MEMORANDUM 8000 Norman Center Drive T 952.885.5999 Suite 1000 F 952.885.5969 Minneapolis, MN 66437 -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. 9579 -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 r 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: • 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. • The program is designed to deal with vacant sites, parcels containing vacant houses, or parcels containing houses that are structurally substandard (using the redevelopment definition contained in the Tax Increment Act). /1 � • 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. 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. JRCIal Enclosures MMB: 484.9- 0378 -2647, v. 1 3 l� ,1111� DRAFT: September 29, 2010 RESTATED HOUSING REPLACEMENT DISTRICT PLAN •;_ HOUSING REPLACEMENT DISTRICT NO. 1, INCLUDING PHASES L II, III, IV, 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 MM$; 4825- 8932 -1474. Y. I 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 2010, 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 MMD: 4843 -3415 -1938, v. I adopted. November 24,1997: The Housing Replacement District Plan was amended to include Phase H. May 3, 2001: The Housing Replacement District Plan was amended to include Phase III. 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. MMD: 4843 -3415 -1938, v. I 11� 4 TABLE OF CONTENTS This Table of Contents is not part of the Housing Replacement District Plan; it is only for convenience of reference. 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 Acquisition 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 11 -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; 4W- 7260-9794, v. 1 PAGE # 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 L L Definitions. The terns 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. "Authori " 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 DistrictNo.1, created October 23,1995 and restated December 6, 2010, and, as it may be subsequently amended. "Enabling Legislation" 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 2010, 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. "Protect" 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. 1 -1 Section 1.2. Statutory Authorization. The Enabling Legislation provides for the establishment of the District and the adoption and implementation of the Plan. The Authority is authorized under the Act to adopt the Plan and establish the Project Area, Section 1.3. Statement of Objectives. Housing is essentially the determining factor by whi ch a city is initially judged, and as a result, reflects the character of the city and the characteristics of its resident population. The Authority has determined that there are certain areas within the City which may negatively reflect its character and that of its residents. These areas are potentially more valuable, more productive and more stable than is currently realized because they contain parcels that are vacant, under- utilized or blighted, due to poor planning and subdivision and zoning practices and to existing structures, which because of (i) dilapidation, (ii) obsolescence, (iii) overcrowding, (iv) faulty arrangement or design, (v) lack of ventilation, light and sanitary facilities, (vi) inadequate land 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 determined that it is in the best interests of the City to initiate a Plan to assist in creating viable environments which would upgrade and maintain housing stock, maintain housing health and safety 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 -year, multi -phased Plan will strive to achieve the Authority's and the City's sole objective of acquiring blighted, �•.� undeveloped 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 Nand 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 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 Compliance. 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. Asa 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. 1 -3 Records documenting the original site conditions and eligibility of each Parcel certified for inclusion in the District are on file in the offices of the Fridley Housing and Redevelopment Authority, 6431 University Avenue NE, Fridley,- Minnesota. Section 1.6. Procedure for Adding Parcels to the District. Following adoption of this Plan by the City and Authority, and certification of the Parcels listed in the Phases herein, the Board of Commissioners of the Authority may identify by resolution, at any time, any additional Parcels to be added to the District. No more than 100 Parcels may be included in this District. These Parcels may be added at any time without formal modification of this Plan, provided the designated Parcels meet 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, are not redeveloped or rehabilitated for Market Rate Housing, these Parcels may be deleted from the District. Examples of circumstances that may result in the deletion of a Parcel from the District include polluted soils, excessive site preparation costs, inability on behalf of the Authority to acquire the property, limitations on the marketability of the property, or changes in land use. Under these circumstances, Parcels may be deleted from the District by resolution of the Authority Board of Commissioners. if the Parcels that are deleted from the District have not generated any tax increment subsequent to their initial certification and have not utilized any tax increment funds from the District, these Parcel may be 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 (2) Such acquisition will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Section 1.9. Proposed Develo mp ent Activity. The Authority intends to acquire parcels but may not have more than a maximum of one-h undred (100) parcels at any time in order to achieve the Plan's goals. The specific parcels and the development activity anticipated for those parcels are 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 Proj ce t 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 property 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 7 $ parcels in each school district. MMB: 4816 - 8341.7346, v. 1 1 -5 r"� ARTICLE V PHASE V Section 5.1. Specific Development ActiviV. As of December 13, 2010, the Authority intends to enter into the following proposed development activity for this Phase: to acquire and develop the property located at 5825 — 2 Y7 Street NE (Parcel l) and 521 Fairmont Street NE (Parcel 2) in Fridley, Anoka County, Minnesota. Section 5.2. Estimated Project 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 in the City. As of January 2, 2010, the average .market value. of single family housing in the City is $175,200 and 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 I 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 2, 2012, is estimated to be $2,000 each for Parcel 1 and Parcel 2. Section 5.6. Original Tax Cg2acity 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 for this Phase has been calculated assuming a static tax capacity rate and a valuation increase of two and one half percent (2.5 %) compounded annually: For Parcel I this amount is $1,655 and for Parcel 2 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 first 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 onthe attached Exhibit V- A. MMH: 4841- 7299 -8919, Y. 1 11-� 5 -1 EXHIBIT I -A HRP Budget HRP Budget HRP Budget Phases I - IV Phase V Add`I Phases Source of Funds Tax Increment Revenue $ 438,421 $ 62,000 $ 2,356,000 Investment Earnings 7,166 620 23,560 Bond Proceeds 16,400 623,200 639,600 Loan Proceeds 58,425 - - Sales/Lease Proceeds - - - Loan/Advance Repayments (6,546) (248,755) F 0 Local Contribution 768,750 43,150 1,639,700 Other Transfers in 2,064,705 67,450 2,563,100 Total- Sotxrc -e- of -Pund Q 3,330�01— $- 17aM0 82�360 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 Total Budget $ 2,856,421 24,180 58,425 2,451,600 4,695,255 $ 2,250,000 $ 124,000 $ 4,712,000 $ 7,086`000 575,000 26,000 988,000 1,589,000 125,000 7,166 272,315 404,481 - 16,400 623,200 639,600 125,000 6,200 235,600 366,800 $ 3,075,000 $ - -- 179,766 $ 6,831,115 $10,085,881 255,301 (6,546) (248,755) F 0 4836 - 2289 -2103 I -A -1 n i 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 TAX TAX AS % ENTITY BASE CAPACITY CAPACITY CAPACITY OF TOTAL City of Fridley 26,555,023 500 2,000 1,500 0.006% County of Anoka 295,039,609 500 2,000 1,500 0.001% ISD 011 184,421,984 500 2,000 1,500 0.001% ISD #13 18,547,967 500 2,000 1,500 D.008% ISD #14 13,272,880 500 2,000 1,500 0.011% ISD #16 36,129,220 500 2,000 1,500 0.004°% IMPACT ON TAX BASE - ISD #11 - Single Parcel IMPACT ON TAX BASE - ISD #18 - Single Parcel ENTITY TAX % OF TAX TAX RATE ENTITY RATE TOTAL INCREMENT INCREASE City of Fridley 0.32258 $3.97% 484 0.002% County of Anoka 0.35189 37.D6% 528 0.000% ISD #11 0.19939 21.00% 299 0.000% Other 0.07578 7.98% 114 0.94964 100.00% 1,424 IMPACT ON TAX BASE - ISD #13 - Single Parcel TAX % OF TAX TAX RATE ENTITY RATE _ TOTAL INCREMENT IN-CREASE City of Fridley 0.32258 32.45% 484 0.002% County of Anoka 0.35189 35.39% 528 0.0000/0 ISD #13 0.24398 24.54% 366 0.002% Other 0.07578 7.62% 114 0.99423 100.000/0 1,491 IMPACT ON TAX BASE - ISD #14 - Single Parcel TAX % OF TAX TAX RATE ENTITY RATE TOTAL INCREMENT JNCREASE City of Fridley 0.32258 28.34% 484 0.002% County of Anoka 0.35189 30.92% 528 0.000% ISD #14 0.38795 34.08% 582 0.004% Other 0.07578 6.660A 114 1.13820 100.0011/0 1,707 IMPACT ON TAX BASE - ISD #18 - Single Parcel ENTITY TAX RATE % OF TOTAL TAX INCREMENT TAX RATE INCREASE City of Fridley 0.32258 30.24% 484 0.002% 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 w 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. 4850-6612 -2503 I -B -1 IMPACT ON TAX BASE - ISD #11 - All 78 Parcels TAX EXHIBIT 1- B TAX TAX RATE ENTITY RATE ESTIMATED IMPACT OF HOUSING REPLACEMENT DISTRICT NO.1 �--� City of Fridley 0,32258 All 78 Parcels 37,742 0.143% County of Anoka 0,35189 IMPACT ON TAX BASE - All 78 Parcels 0,014% ISD #11 0.19939 21.000/c ORIGINAL ESTIMATED CAPTURED DISTRICT 7,98% TAX TAX TAX TAX AS % ENTITY BASE CAPACITY CAPACITY CAPACITY OF TOTAL City of Fridley 26,556,023 39,000 158,000 117,000 0,441% County of Anoka 295,039,609 39,000 166,000 117,000 0.040% ISD #11 184,421,964 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 IMPACT ON TAX BASE - ISD #13 - All 78 Parcels TAX % OF TAX TAX RATE ENTITY RATE TOTAL INCREMENT INCREMENT INCREASE City of Fridley 0,32258 33.97% 37,742 0.143% County of Anoka 0,35189 37.06% 41,171 0,014% ISD #11 0.19939 21.000/c 23,329 0,013% Other 0.07578 7,98% 8,856 0.94964 100.00% 111,108 IMPACT ON TAX BASE - ISD #13 - All 78 Parcels IMPACT ON TAX BASE - ISD #14 - All 78 Parcels TAX % OF TAX TAX RATE ENTITY RATE TOTAL INCREMENT INCREASE City of Fridley 0.32258 32.45% 37,742 0.143% r"\ County of Anoka 0.35189 35,39% 41,171 0.014 0k ISD #13 0,24398 24.54% 28,646 0.1560/0 Other 0.07578 7.62% 8,868 0.99423 100.00% 116,325 IMPACT ON TAX BASE - ISD #14 - All 78 Parcels IMPACT ON TAX BASE - ISD #16 - 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 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 -2 48W -N12 -2503 TAX % OF TAX TAX RATE ENTITY RATE TOTAL INCREMENT 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 100.000/0 124,814 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. 1 -B -2 48W -N12 -2503 EXHIBIT 1 -C CITY OF FRIDLEY Housing Replacement Program ASSUMPTIONS HRP 2010bAs I -C -1 Total Original Market Values Original Land Value 78 arcels @ $ 50,000 per parcel = $ 3,900,000' `r Total Original Market Value $ 3,900,000 , Original Tax Capacity 3,900,000 Orig MV @ 1.00% Class Rate = 39,000 Estimated Market Value _ 78 units @ 200,000 per unit = 15,600,000 _ Estimated Tax Capacity 78 units @ 2,000 per unit = 156,000 Estimated Tax Increment - annual 78 units @ 1,400 per unit = 109,219 Estimated Tax Increment -Total PV 78 units @ 19,683 —per unit = 1,535,253 6 1 'Local Tax Rate ISD #11 ISD #13 ISD #14 ISD #16 Average_! rCity of Fridley County of Anoka 0.32258 0.32258 0.35189 0.24398 0.07578 - .32258 1 0.322581-- 0.35189 0.38795` 0.07578' 0.32258 -- — I 0.35189 0.19939; 0.075781 _ _ 0.35189 0.31654; 0.07578; i I - -- - 1.03722 IISD — _ -__ - . ;..... Other '6 Cities WMO -__- I- Total Local Tax Rate - -- 0.94964 _ 0.99423 1.13820 -w 1.06679 Admin Fees 10.00% f State Auditor Fee 0.000% Inflation (after 2 yrs of full value} 2.50% ^ Present Value Rate I T—i— 6/112011 3.50 °!0 HRP 2010bAs I -C -1 EXHIBIT 1-0- continued.- - - - CITY OF FRIDLEY CASH FLOW AND PRESENT VALUE ANALYSIS < - _- ---- -- ANNUAL S - ANNUAL - ----! (a) (b) (c) (d) (e) (f) (g) (h) + Original Estimated Captured Est. T. I. Less: Available Cumulative Tax Tax Tax d x Admin Tax Avail. Tax Date Capacity Capacity Capacity 1.03722 Fees Increment Increment I see assurn tions c - b - St. Aud. Fee e x e - - _Total aft 2.5 % Inflation (prev. year) 0.000 % 10.00% i 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 j- 39,000 39,000 0 0 _ 0 0 0 12/01/11 39,000 39,000 0 0 0 0 0 06/01/12 39,000 156,000 0 0 0 0 0 12/01/12. 39,000_ 0 -_ 156,QOQ 0 T 0 0 0 0 ' 1 13 _ 39,000 156,000 117;000 ~_ 60,677 6,068 54,610 54,610 12101/13 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 =I 12/01/14 06101/15. 39,000 39,000 159,900 163,898 117;noo 120,900 60,677 62,700 6,068 6,270 54,610 56,430 _ 218,439 ; 274,8681 12/01115 39,000 163,898 120,900 62,700 6,270 56,430 331,298 ' _ 4 06/01/16 39,000 12/01/16 39,000 167,995 167,995 124,898 - 124,898 64,773 - 64,773 _ - 6,477 6,477 58,296 58,296 _ 389,5941 447,8901 5 - 06101/17 1__ -- 39,000 172,195 128,995_ ` 66,898 6,690 60,208 -60,208+ 508,098,► 6 E 1210111_7 39,000 1 06/01/18 i 39,000 172,195 176,500 128,995 133,195 66,898 69,076 6,690 6,908 62,169 568,307', 630,475 12/01/18 _ 39,000_ 06/01/191 39,000 176,500 133,195 69,076 6,908 62,169 7 180,912 137,500 71,309 _ 7,131 - 64,178 - _692,844_ 756,821 1 __.. 12/01/19 T. 39,000 - 180,912 137,500 71,309 7,131 64, 178 20 8999 , 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 1 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 1,090,1 10 06/01/22 39,000 194,823 151,071 78,347 7,835 70,512 1,160,683 s E 12101/22 39,000 194,823 151,071 78,347 _ 7,835 -- 70,512 1,231,19 i5 ill 06/01/23 -- 39,000 199,693 155,823 _ 80,811 _ 8,081 _ 72,730 1,343,925 ` 12/01/23 199,693 155,823 80,811 8,081 72,730 1,376,65 -�j 12 I- 06101/24 �- -- _39,000 39,000 ^+ 204,686 160,693 - 83,337 _ 8,334 75,003 r_ 1,451,659 r �- 13 12101124 06/01125- ; 39,Q00 39,000 204, 686 209,803 160,693 165,686 83 337 - 85,926 8 334 8,593 75 003 _ 77,334 1 526 662 f , 1,603,03, 8 12101/25 39,000 209,803 165,686 85,926 8,593 77,334 • 1,681,329_1 14 06/01/26 ; 39,000 215,048 170,803 88,580 8,858 79,722 1,761,051 ; 12101/26 39,000 215,048 170,803_ 88,580 _ 8,858 _ 79,722 1,840,773 15 r 06/01/27 12/01127! ! 39,000 - 39,000 220,424 220,424 176,048 _ 176,048 - 91,300 _ 91,300 -9,130 9,130 82,170 _ 82,170 1,922,943 1 2,005,113 16 06/01/281 39,000 225,935 - 181,424 941088 9,409 84,679 2,089,793 + 12/01/281 225,935 18_1,424 94,088 84,679 2,174,472 _39,000 -9,409 2,416,480 ' 241 648 2,174,472 2,174,472 INFORMATIONAL ITEM HRA MEETING OF DECEMBER 2, 2010 CrrY of FRUKEY Date: November 24, 2010 To: William Burns, City Manager From: Paul Bolin, Asst. Executive HRA Director Subject: Home Improvement Demonstration Proiect Update 831 Mississippi Street The home did have a showing this past Saturday. The comments left by the realtor and the viewing party were very positive, however, we still have not received an offer on the home. Potential Remodels Title issues have arisen on the rambler we have been trying to purchase at 4757 2nd Street. It appears that the issues have been resolved and we are now set to close on the property as soon as next week. These delays to closing have put this remodel on hold for the past few weeks, as it gets difficult to set open house dates and develop a construction schedule when we are not sure how soon we can take possession to the home. We have also continued our search for a good split level home for the program. Staff will provide a more detailed update at next Thursday's meeting. n �-- Fridley HRA Housing Program Summary Cover Page December 2, 2010 HRA Meeting n r-� Report Loan Application Summary Loan Origination Report Remodeling Advisor Description Loan application activity (e.g. mailed out, in process, closed loans) for November and year -to -date. Loan originations for November 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. a 4o `�` ��^w �� rJ 1 V :v S !�� I cc�,� _ i S 1 •.- pct -�-� o ,,•� P H:\—Paul's DOCUments\HRA\HRA Agenda ltems\2010\December 2, 2010 \Housing Program CovcrDec.doc Voksm FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY December 2, 2010 p I ( ILI*:e o :4o 1 3r 1. Darin Nelson - Finance Director The City has hired Mr. Darin Nelson to replace Rick Pribyl as the Finance Director. In his new position, Mi. Nelson will work closely with the Authority to manage investments and provide accounting services. The following information from Deb Dahl, HR Director, provides a bit of background on Mr. Nelson. Our new Finance Director is now on- board. Please welcome Darin Nelson who comes to us from the City of Minnetonka where he served as the Assistant Finance Director since 2005. Prior to that, he was a local government auditor for the Office of State Auditor in Minnesota for more than eight years. He as the received his Master's of Arts degree in Public and Non - Profit Administration from Metro State University and obtained his Bachelor's of Science degree in Accounting from Minnesota State University in Moorhead, MN. He currently has his CPA license and has been an active member and program c_ ommittee chair of MNGFOA. Darin graduated from Moorhead High School in Moorhead, MN. 2. Faulkner Development The sewer main issue has been resolved and building is moving forward at a quick pace. Staff will provide some up to date photos of theroect at next week's meetmm 4. Columbia Arena The Planning Commission held a public hearing on the Special Use Permit for the potential retrofit of the Arena into 83 senior living units (36 independent units, 31 assisted units, and 16 memory care). The Planning Commission approved the project and sent it forward for Council Action on December 6th. If approved, work could begin as soon as December 7th, according to the owner's representative. 5. GWNE Staff is set to close on the Tae Kwan Do property on Tuesday November 30th. Mr. Kith will continue to occupy and rent the building from the HRA until the end of February. Staff is on schedule to bring forward a recommendation for a demolition contractor to the HRA's February meeting. Demolition will begin around the 1 st of March and be completed prior to road restrictions going into place. M