HRA 06/02/2011 - 6549June 2, 2011
HRA Meeting
Regular Meeting Agenda
7.00 p.m.
Call to order
Roll call.
Action Items
1�u-bu6
1. Approval of expenditures
2. Approval of May 9, 2011 Meeting Minutes
3. Public Hearing and Consideration of Resolution Authorizing Sale of 831
Mississippi Street
4. Consideration of Amendment to Development Agreement - 6499 University
Avenue NE
Informational Items
1. Home Improvement Demonstration Project Update
2. Scattered Site Housing Replacement Program Update
3. Housing Loan Program Update
Adjournment
H: \My Documents\ HRA\2011 HRA Agenda\June -2011 Agenda Outline.docHWy Documents\HRA\2011 HRA Agendallune -2011
Agenda Outline.doc
CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION
MAY 9.2011
CALL TO ORDER:
Chairperson Commers called the HRA Meeting to order at 7:20 p.m.
ROLL CALL:
MEMBERS PRESENT:
MEMBERS ABSENT:
NONMEMBERS PRESENT:
ACTION ITEMS:
1. Approval of Expenditures
Larry Commers
William Holm
Stephen Eggert
John Meyer
Pat Gabel
Paul Bolin, HRA Assistant Executive Director
Becky Kiernan, Accountant
MOTION by Commissioner Eggert to approve the expenditures as presented. Seconded by
Commissioner Holm.
Chairperson Commers asked what the administrative expenses covered.
Becky Kiernan, Accountant, said the city bills HRA quarterly for Staff time plus health
insurance.
Commissioner Holm asked about the Metro Home and Garden Show expenses, he understood
that those expenses would be reimbursed.
Paul Bolin, HRA Assistant Executive Director, said that is correct. Fridley is the fiscal agent for
the show and the revenues collected from the vendors exceed the expenses.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY
2. Approval of March 3, 2011 Meeting Minutes
MOTION by Commissioner Holm to approve the March 3, 2011 minutes as presented.
Seconded by Commissioner Meyer.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY
3. Approval of Property Disposition Procedures — Scattered Site Lots
Paul Bolin, HRA Assistant Executive Director, said that the Housing Replacement Program
(HRP) was re- established in June 2010. The purpose of this program is to eliminate blighted and
substandard homes, preserve /expand tax base with new construction and encourage
neighborhood revitalization. Staff has been looking at foreclosures during this poor housing
market and purchased four homes so far. Staff have received recent inquiries from the public
regarding vacant lots and if they will be for sale.
Mr. Bolin said staff would like to continue the HRP Process for selling lots that was in place
during the first phase of the program but make the following changes:
• Increase in Lot Reservation Fee from $500 up to $1,000
• Allow factory stick built (modular) homes that meet all construction and design
standards
Mr. Bolin said that only a Licensed Builder would be able to purchase and build a home. The
builder or an individual may reserve a lot for up to 60 days for $1,000. During the 60 day
reservation period there would be a signed Purchase Agreement between the builderibuyer, a full
set of house plans submitted for review and evidence of financing.
Mr. Bolin said that HRA would still review the project, authorize the sale and enter into a
contract for private redevelopment. All projects must meet Authority design guidelines as
outlined in the Patternbook for New Homes. A Public Hearing authorizing the sale must also be
held.
Mr. Bolin said that the proposed change in the increase of lot reservation fee will discourage
those not serious from preventing sale to a party that is ready to build. Mr. Bolin also suggested
the Authority allow factory stick built (modular) homes. The quality of this type of home is
better than some site built homes and they must meet the design criteria found in book.
Mr. Bolin said that this program will be marketed on the city website, newsletter, and the
electronic billboard. A notice would also be sent to MN Realtors and the Metro Builders
Association to make their members aware of this program. Listing price for the properties are
proposed to be 10% less than the City's assessed land value. Authority must approve and hold
hearing prior to any sale taking place. Staff recommends the Authority approve the marketing
and sale of the Housing Replacement Program properties as presented. Staff further
recommends that this sales model also be used for the remaining Gateway West lots.
Chairperson Commers thought that lots used to be 50% of the assessed value.
Mr. Bolin said the assessor thinks asking 10% below market value would be fair. For example
the lot at 434 Liberty Street assessed value is $54,000 so the asking price would $48,600. These
are suggested starting prices. We don't know how realistic these prices are until someone tells
us it's too high. For the most part people will try to finance the lot as part of an appraisal. It is a
starting point and we can come down from there if needed. Staff will take advantage of the
expertise from the realtor we have been working with and if the price seems too high an
appraiser can look at it.
Commissioner Meyer thought people should just be able to make an offer for the lots and if the
price seemed fair, the Authority should sell it.
Commissioner Eggert said that with price of gas at nearly $5.00 a gallon, Fridley is a
convenient location for many people wanting to build in Fridley. If people get a break on the lot
the Authority would have to see what they plan to build. There are formulas available for when
people 'build a home, so much for the land and so much for the house. He did not think the lots
should be given away at a low price and there are certain houses that the Authority will approve
to fit in the area.
Chairperson Commers did not see any harm in putting a value on the lots and being flexible
with negotiations. Staff can give the price to the first four people and see what their reaction is.
He was more concerned about building modular homes. He would like more information about
modular homes and how they have improved before he would vote for approval to build them.
There would need to be specifications on the manufactured homes assuring that they are built
according to plan meeting code and design criteria.
Commissioner Eggert said there are many modular type homes including trailers and double
wides, but there are some home builders that build modular homes wall by wall. He added that
to be approved they would have to meet Minnesota building code and have a basement.
Commissioner Meyer said that there is nothing wrong with the modular homes and building
inspectors are ok with them. Regarding the price of the lots, whether HRA gets $15,000 for a lot
or $30,000 for a lot, the major concern is what goes on the lot. He did not want HRA to get too
involved with the lot price because that is secondary to what goes on the lot.
Commissioner Holm asked if building guidelines require a basement.
Mr. Bolin answered yes; all single family homes must have a basement per city code.
Commissioner Holm asked to review the timeline for building the home from the start.
Mr. Bolin reviewed the Overview of Development Process:
Step 1: Lot Reservation
Step 2: Builder/Buyer works on preparing plans, arranging financing and executing a
purchase agreement. Must be submitted to HRA within this time frame. (Up to
60 Days)
Step 3: HRA staff review of plans and related project documents. (Up to 30 Days)
Step 4: HRA meeting to review and approve the project. Builder can submit application
and plans to City for building permit. (Up to 30 Days)
Step 5: Developer and HRA execute development contract. (No later than 30 Days after
HRA Approval)
Step 6: Closing. HRA sells lot to builder and conveys title. (No later than 60 Days after
HRA Approval)
Step 7: Construction (Maximum of 120 days, weather permitting)
Mr. Bolin said that he anticipates that within the first 60 days staff will work with the buyer and
builder on the plan. Staff will be in contact with the people throughout the process and if they
run into problems, the timeline is an example of the worst case scenario.
Commissioner Holm asked if the lots would be sold on a first come first serve basis.
Mr. Bolin said that is correct, that is one of the reasons staff would like to put prices on the
properties.
Chairperson Commers asked if it was customary for a developer to pay cash for a lot before
construction begins.
Mr. Bolin said that would be easiest but there will be a provision for them to use construction
financing and HRA to subordinate to them.
Chairperson Commers said that in a typical subordination, if something goes wrong with
construction or events change, the mortgage company has first rights to the property. HRA will
have to make sure the purchaser is credit worthy.
Mr. Bolin said that by the end of the 60 days the purchaser will need construction financing and
the home owner will be qualified for permanent financing.
Commissioner Eggert asked if all 10 properties would be listed or just few.
Mr. Bolin said for right now they would include Gateway West (9 lots), 434 Liberty Street, 521
Fairmont and 381 Ironton. The Authority has some other parcels scattered about but some are
not buildable.
Chairperson Commers was ok with putting the lots up for sale on the west side especially if
people are interested in buying the lots.
Mr. Bolin said he would report back to the HRA next month, any interest in the properties.
Chairperson Commers asked why modular homes had to be spelled out in the guidelines. If a
purchaser wanted to bring one forward, they could do so and ask for approval at that time.
Mr. Bolin said that last time modular homes were specifically prohibited. He said that language
could be taken out.
Chairperson Commers was happy to hear modular homes are of good quality now but would
like to take out the language.
MOTION by Commissioner Holm to approve the Property Disposition Procedures — Scattered
Site Lots with the removal of number 3 — modular homes. Seconded by Commissioner Eggert.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY
INFORMATIONAL ITEMS:
1. Home Improvement Demonstration Project Update
Paul Bolin, HRA Assistant Executive Director, said that the Authority purchased the home on
831 Mississippi Street in 2009 for $127,500. HRA invested $60K in improvements as part of the
Demonstration program. 2,500 attendees came to open houses and this increased the loan
activity and building permits.
Mr. Bolin said that the median home value has decreased by 15% since our purchase ($135K to
$114K) and the percent of the original asking price received has also decreased from 91% to
85.8 %. Staff has received an offer on this home. The original offer was $150K less $5K in
seller concessions and a $2K bonus for their realtor (bottom line - $143,000). The final offer
received is $157, 500 less $5K in seller concessions and some minor repairs (bottom line -
$152,500). The closing on this home would be on June 3. Staff recommends the Authority
approve the terms of the purchase and set a public hearing on the sale of the property, for June 2,
2011.
Mr. Bolin said that the home on 4757 2 "d Street will be completed by May 18th with open houses
scheduled the weekend of May 21 and 22 from 11 AM until 4PM.
MOTION by Commissioner Eggert to approve the purchase agreement for 831 Mississippi
Street in the amount of $157,500. Seconded by Commissioner Meyer.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY
2. Scattered Site Housing Replacement Program Update
Paul Bolin, HRA Assistant Executive Director Home at 434 Liberty was demolished last month
and lot is now prepped for resale. Staff has continued to look at homes on a weekly basis and
negotiated a purchase on 381 Ironton Street for $50,000.
MOTION by Commissioner Holm to approve the purchase of the property located at 381
Ironton Street. Seconded by Commissioner Meyer.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY
3. Gateway Northeast — Demolition Update
Paul Bolin, HRA Assistant Executive Director, said that the demolition in the Gateway
Northeast area went well. The contractor, Buberl Recycling, is excellent to work with and there
have been no problems.
4. Housing Loan Program Update
Paul Bolin, HRA Assistant Executive Director, said that in April there were no loans closed and
year to date there is one RLF loan and two others making three year to date. There were two
remodel advisor visits in March/April making a total of three year to date.
OTHER UPDATES:
Paul Bolin, HRA Assistant Executive Director, said that last Thursday staff attended the
Northstar Developer's Tour. 21 developers were on the bus and they stopped and toured each
station. They talked about development opportunities around the site. Staff showed developers
the JLT and Gateway NE properties and land around the station. Staff has contacted the broker
about the JLT vacant property on I -694 and East River Road. They are marketing the property.
Mr. Bolin said the property on 57th and Main owned by Steve Linn made an early payoff on the
TIF note. A new tenant is going in and they are remodeling the building. The TIF District runs
through 2016. There are a few more years to collect increment to pay the Authority back.
Mr. Bolin gave a brief update on the court case between the City of East Bethel and the Anoka
County HRA, regarding Anoka County's authority to levy in the City of East Bethel.
ADJOURNMENT:
MOTION by Commissioner Holm to adjourn. Seconded by Commissioner Meyer.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT
9:10 P.M.
Respectfully Submitted,
Krista Monsrud, Recording Secretary
ACTION ITEM
ri HM MEETING OF JUNE 212011
CITY OF
FRUXEY
Date: May 25, 2011
To: William Burns, City Manager
From: Paul Bolin, Asst. Executive HRA Director
Subiect: Home Improvement Demonstration - Public Hearing & Sale
831 Mississippi Street
As reported last month, staff came to terms with a buyer for the remodeled home. Statute
requires the Authority hold a public hearing authorizing the sale and sale price through adoption
of a resolution (attached).
The terms of the sale are as follows:
Home sales price: $157,500
Seller concessions: $5,000
Final Price $152,500
It has been a nerve wracking few days trying to keep the deal together after the home sustained
damage in the tornado on May 22nd. Lennox Builders and the City Building Inspections staff are
doing an extraordinary job to get the home repaired in time to close on June 3rd.
Recommendation:
Staff recommends adoption of the resolution authorizing the sale of the home located at 831
Mississippi for the terms described above.
HRA RESOLUTION NO.
A RESOLUTION AUTHORIZING THE SALE OF
RESIDENTIAL PROPERTY BY THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FORTHE CITY OF
FRIDLEY, MINNESOTA.
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:
Section 1. Recitals.
1.01. It has been proposed that the Authority sell certain residential property (the "Property ")
described below:
Parcel I.D. No.
14- 30 -24 -14 -0080
Section 2. Findings.
Street Address
831 Mississippi St. NE
2.01. The Authority hereby finds that it has approved and adopted a development program
known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the
"Redevelopment Program ") pursuant to Minnesota Statutes, Section 469.001 et seq.
2.02. The Authority hereby finds that it has approved and adopted a Housing Replacement
District Plan (the "Plan ") and created Housing Replacement District No. 1, pursuant to
and in accordance with Laws of Minnesota 1995, Chapter 264, Article 5, Sections 44
through 47; Laws of Minnesota 1996, chapter 471, article 7, section 22; Laws of
Minnesota 1997, chapter 231, article 10, section 13; Laws of Minnesota 2002, chapter
377, article 7, section 6; Laws of Minnesota 2008, chapter 154, article 9, section 19,
and Laws of Minnesota 2010, Chapter 216, Section 42 (collectively "The Act ").
2.03. The Authority hereby finds that it has performed all actions required by Minnesota
Statutes for the sale of the Property.
2.04. The Authority hereby finds that the sale of the Property promotes the objectives as
outlined in its Redevelopment Program and the Plan.
Section 3. Approval of the Sale.
3.01. The sale of the Property is hereby approved.
Section 4. Authorization for Execution and Delivery.
4.01. The Chairman and the Executive Director of the Authority are hereby authorized
to execute and deliver any documents necessary to effect the sale of the
Property.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF FRIDLEY, MINNESOTA, THIS DAY OF ,
2011.
LAWRENCE R. COMMERS - CHAIRMAN
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR
MMB: 4822 -4565 -5305, v. 1
NOTICE OF PUBLIC HEARING
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE
CITY OF FRIDLEY
COUNTY OF ANOKA
STATE OF MINNESOTA
NOTICE IS HEREBY GIVEN THAT the Board of Commissioners (the "Board ") of
the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the
"Authority ") will hold a public hearing on Thursday, June 2, 2011, at 7:00 p.m., at the
Fridley City Hall, 6401 University Avenue Northeast, Fridley, Minnesota 55432, relating to
the sale of the property described below pursuant to Minnesota Statutes, Section 469.029. A
copy of the documentation relating to the proposed action will be on file and available for
public inspection in the office of the Assistant Executive Director of the Authority.
Parcel I.D. No. Street Address Minimum Sale Price
14- 30 -24 -14 -0080 831 Mississippi St. NE $152,000
All interested persons may appear at the hearing and present their view orally or in
writing.
BY ORDER OF THE BOARD OF COMMISSIONERS
Chairman
MMB: 4811 - 3481 -5490, v. 1
L ACTION ITEM
rJ HRA MEETING OF JUNE 2, 2011
MY OF
FRIDLEY
Date: May 25, 2011
To: William Burns, HRA Executive Director
From: Paul Bolin, Asst. Executive HRA Director
Subject: Amend Development Agreement for 6499 University Avenue
INTRODUCTION
In 1984 the Authority entered into a development agreement with Target for the
property, located just north of City Hall, at 6499 University Avenue. The
development agreement allowed Target to rent the land surrounding the building
until 2014, when Target would be obligated to purchase the property referred to
as Parcel "B" for $300,000.
The rent for Parcel "B" was considered paid in full, thru 2014 when Target
purchased a US Treasury Bond in the name of the Authority with a principal
amount of $135,000, maturing in May of 2014. The Bond generates the $15,000
annual rent Target was obligated to pay for use of the property and the Authority
is entitled to the Bond principal upon maturity. The agreement specifically states
that the bond and rent paid have no bearing on the $300,000 land purchase price
of Parcel "B ".
In 2005, the former Target Northern Operations Center was sold to Mr. Mark
McCary (6499 Partners, LLC) for $2.6M and the Authority's Development
Agreement with Target was amended. At that time, 6499 Partners had asked
that the Authority waive its right to construct a ramp on the site and allow for an
early buyout of Parcel "B" at a greatly reduced price. At the time, staff and legal
counsel were not swayed that a reduced cost was warranted.
In short, the Authority agreed to a number of 6499 Partners' requested changes
to the agreement as it related to the 1984 Contract for Private Development and
Lease - Purchase Agreement between the HRA and Target, except for the request
that the HRA lower the $300,000 purchase price for Parcel "B. The Authority
believed that delaying the required $300,000 purchase until 2014 avoided placing
additional monetary burdens on 6499 Partners as they attempted to improve and
lease -up the building was already a significant contribution to their efforts.
6499 Partners made updates to the building and by early 2006 had signed the
Onan Corporation to a long term lease. Mr. McCary sold the building to the
Gladstone Commercial Corporation in February of 2008 for $10,550,000.
Over the past few weeks representatives for Gladstone Corporation have called
to indicate that they would like to purchase Parcel "B" and close within a month.
They have also requested, despite the development agreement & recent history
of having declined to do so for Mr. McCary, that the Authority sell Parcel "B" for a
reduced price of $275,000.
When asked to justify the need for a price reduction / business assistance they
could not. Neither their attached letter nor phone calls have provided Staff with
any justification for a lower sales price. They refer to the Treasury Note that
Target had provided the Authority to pre -pay rent on Parcel "B" as their reason to
reduce the pre- agreed upon lot sales price.
STAFF RECOMMENDATION
The Gladstone Corporation has failed to demonstrate any need for the reduced
price. Staff recommends that the land not be sold for less than the $300,000
stated in the 1984 development agreement. The provisions in both the original
1984 agreement and the 2005 amendments are very clear on this issue:
From the 1984 Agreement -
Section 3.4: Obligation to Purchase: "...on April 1, 2014 ... Target shall
purchase Parcel B at a purchase price of $300,000."
From the 2005 Amendment -
Section 3.3 Rent: "deemed to be pre-paid ... no further Rent payments shall be
required of 6499 with regard to Parcel B ... in the event that 6499 purchases all or
any portion of Parcel B prior to April 1, 2014, 6499 shall not be entitled to any
rebate or other repayment with regard to the pre -paid Rent."
Section 3.4: Obligation to Purchase: "At any time during the Lease
Term ... 6499 shall have option to acquire Purchase Parcel B for a purchase price
of Three Hundred Thousand and 00/100 Dollars ($300,000)."
Other Notes:
Parcel "B" - includes all of the land around the Onan Building, as depicted on the
attached aerial photo. You will note that Parcel "B" consists of a number of sub -
parcels. The development agreement excludes Subparcel B-4 from the sale.
Subparcel B-4is the land over the Police Departments Garages and Shooting
Range. Upon purchase of Parcel "B" the purchaser will be granted a perpetual
easement for surface parking purposes on Subparcel B-4, subject to the rights of
the City to below grade construction.
Lot Legal Descriptions
Parcel "A" - Lot 1, Block 1 Fridley Plaza Center, Anoka County, MN
Parcel "B" - consists of the five Subparcels B- 1 -B -5, legally described as follows:
Subparcel B -1:
Lot 3, Block 1;
Subparcel B -2:
Lot 2, Block 1;
Subparcel B -3:
Lot 5, Block 1;
Subparcel B-4:
North 21 feet of the East 79 feet of Lot 6, Block 1; and
Subparcel B -5:
Lot 4, Block 1;
All in Fridley Plaza Center, Anoka County, Minnesota.
C08 FRIDLEY MN LLC
c/o Gladstone Commercial Corporation
1521 Westbranch Drive, Second Floor
McLean, Virginia 22102
May 19, 2011
Paul Bolin, AICP
Assistant Executive Director
City of Fridley Housing &
Redevelopment Authority
6431 University Avenue NE
Fridley, MN 55432
Re: 6499 University Avenue, Fridley, Minnesota
Ladies and Gentlemen:
Reference is made to Section 3.4 of that certain Contract for Private Development and Lease -
Purchase Agreement dated June 5, 1984 between the Housing and Redevelopment Authority in
and for the City of Fridley ( "HRA ") and C08 Fridley MN LLC, a Delaware limited liability
company (as successor in interest to 6499 Partners, LLC and Dayton- Hudson Corporation),
which has been amended by a certain First Supplement to Contract for Private Development and
Lease - Purchase Agreement dated March 15, 1985 and a certain Second Supplement to Contract
for Private Development and Lease - Purchase Agreement dated August 30, 2005 (collectively,
the "Development Agreement "). Capitalized terms used and not defined in this letter shall have
the meanings assigned to them in the Development Agreement.
This letter constitutes a request to exercise the option to purchase Parcel B set forth in Section
3.4 of the Development Agreement, prior to the required purchase date at the expiration of the
Lease term (April 1, 2014), for a purchase price equal to Two Hundred Seventy -five Thousand
and No /100 Dollars ($275,000.00).
We would appreciate it if you or another representative of HRA would contact Ms. Pamela
Keene at 703 - 287 - 5842 (pamela .keen @gladstonecompanies.com) in response to this offer.
Thank you in advance for your time and consideration.
C08 Fridley MN LLC
By: Gladstone Commerce' 1 Limited Partnership
By: GCLP Busi(i; js/rMst II
By: L n
Christ *he Massey, Vice President
INFORMATIONAL ITEM
ri HRA MEETING OF JUNE 212011
CITY OF
FRIDLEY
Date: May 26, 2011
To: William Burns, City Manager
From: Paul Bolin, Asst. Executive HRA Director
Subiect: Home Improvement Demonstration Proiect Update
831 Mississippi Street
We are busy working to repair the storm damage to the home in anticipation of next week's
closing. As the City and Authority are self insured through the League of Minnesota Cities
Insurance Trust, with a $50,000 /occurrence deductible, the Authority will need to pay the
estimated $12,000 to $15,000 to repair the home. This has led to some discussion as to whether
or not the Authority may want to purchase separate coverage, with a lower deductible for any
fixture remodel projects. Staff will do some research on the advantages /disadvantages of carrying
a separate policy before next week's meeting and provide findings at that time.
4757 2nd Street
When it rains, it pours... literally. Since the Authority's last meeting, our home completion
schedule ran in to more snags; days of rain and a shortage of employees meant that our home was
not fully completed for the open houses on May 20th & 21 st. We planned to have a big push to
have the home completed and scheduled the next open houses for June 5th and June 8th.
Last Sunday afternoon, as I was staffing the open house, the tornado missed us by 1 block.
Unfortunately, it hit the home on Mississippi Street and getting that put back together to save the
sale has been the priority I have given to Lennox Builders. As if this weren't enough, our
contractor was hospitalized earlier this week with heart problems. Somehow the project will all
come together, even if it means that Scott Hickok and I need to start pounding nails!
Staff will provide an update with photos on Thursday night.
INFORMATIONAL ITEM
M`' HRA MEETING OF JUNE 212011
crrY OF
FRIDLEY
Date: May 25, 2011
To: William Burns, City Manager
From: Paul Bolin, Asst. Executive HRA Director
Subject: Scattered Site Housing Replacement Program Update
Potential Purchases
Staff has continued to look for more dilapidated homes to purchase and demolish. Staff
inspected 2 more homes over the past 2 weeks, but neither were suitable for the program.
Upcoming Closing
After a number of delays on the sellers end, we have received the final purchase agreement
documents and a closing has been set for June 8th.
Future Purchases
At last month's meeting, staff explained the difficulty in meeting the demands some of the larger
out of state banks place on purchase agreements. Some banks request meeting minutes or a letter
from Dr. Bums stating that the Authority is authorized to make these purchases. Other banks
question my authority to even have preliminary purchase discussions on behalf of the Authority.
Last month I mentioned that a well worded resolution from the Authority may address these
issues. Staff is working to develop a resolution that meets the needs of the banks, yet is in line
with the HRA Bylaws and MN Statutes. If such a resolution is possible, staff will bring if
forward for discussion next week.
Fridley HRA
Housing Program Summary
Cover Page
June 2, 2011 HRA Meeting
Report Description
Loan Application Summary Loan application activity (e.g. mailed
out, in process, closed loans) for May
and year -to -date.
Loan Origination Report Loan originations for May and year -to-
date.
Remodeling Advisor Shows the number of field appointments
scheduled and completed for the
Remodeling Advisor Services
administered by Center for Energy and
Environment.
W— Paul's Documents\iRA\HRA Agenda Items\201 Wune 2,201 Mousing Program CoverJune.doc
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Fridley HRA
5/15/2011
Loan Originations
Programs
This Month
Bathroom remodel
Previous Months
Since 1/1/2011
HRA Loans (incl. CFUF Discount loans)
$
$
10,165.00
$ 10,165.00
Leveraged Loans
$
$
25,437.00
$ 25,437.00
0%
Room addition
0%
Total $
$
35,602.00
$ 35,602.00
Funding Sources
This Month
Siding/Fascia /Soffit
Previous Months
Since 1/1 /2011
Fridley HRA inc Revolving & FRIDLAST
$
$
10,165.00
$ 10,165.00
MHFA FUF /CFUF
$
$
10,100.00
$ 10,100.00
Fridley Discount portion for CFUF
$
$
-
$ -
Met Council
$
$
$
CDBG /HOME
$
$
$ -
CEE Energy
$
$
15,337.00
$ 15,337.00
Other
$
$
-
$ -
Total $
$
35,602.00
$ 35,602.00
Types of Units Improved'
'most HH do more than one improvement so the total # will be equal or greater to the number of loans originated
This Month Previous Months Since 1/1/2011
Single Family 4 4
Duplex -
Tri -Plex - -
4 to 9 Units -
10 to 20 Units -
20+ Units -
Total
Types of Improvements
4
Interior
# of Projects % of Total
Bathroom remodel
- 0•/
Kitchen remodel
- 0%
General plumbing
1 20%
Heating system
0%
Electrical system
0%
Basement finish
0%
Insulation
0%
Room addition
0%
Misc. interior projects
0%
Foundation
0%
Exterior
Siding/Fascia /Soffit
1 20%
Roofing
- 0%
Windows /Doors
3 60%
Garage
- 0%
Driveway /sidewalk
- 0%
Landscaping
- 0%
Misc. exterior projects
- 0%
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