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HRA 11/04/2010 - 29814CITY 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 13th. 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 behal£ 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 161oans 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 ne�t 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 e�tend 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 e�terior of the building with windows and dormers. The units will be lined up on the e�terior 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 property 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 Big Lake to St. Cloud. Originally it was top priority to make this link happen but with the economy recession and the high unemployment insurance 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 at this time 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 15 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'/z day on Friday and did not have an option to get home. A bus will take people home at lpm on Fridays and will only stop in Fridley if people need to get off. Anyone interested can find more information on Fridley's website and link to Metro Transit. 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 state wide 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