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HRA 09/01/2011 - 6551SEPTEMBER 1, 2011 HRA Meeting Regular Meeting Agenda 7.00 p.m. City Hall, Council Chambers Call to order Roll call Action Items Pvb kc- 1. Approval of expenditures 2. Approval of August 4, 2011, Meeting Minutes 3. Approval of Resolutions Approving Interfund Loans 4. Approval of 2011 Tax Levy for Taxes Payable in 2012 5. Approval of Phase VII - HRP 6. Authorization to Solicit Qualifications for Real Estate Broker Services - G"E Informational Items 1. Housing Loan Program Update Adjournment H:\MyDDcumentsU4RA\20l1 HRA Agenda\Sepl -2011 Agenda Outline (2).docH:\My Documents\HRA\20l l HRA Agenda\Sepl- 2011 Agenda Outline (2).doc G7 V > O C O V N r CA 0 V O 0 0 00 O O O O O O O O O O O O O O O O O O O o 0 o 0 0 0 0 0 0 0 T7 r. 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Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of June 2, 2011 Meeting Minutes Commissioner Gabel asked to amend page three Jim Casserly statement as follows: Jim Casserly, Development Consultant, said that when this was amended it was very clearly stated that the 6499 University Group were deemed to have prepaid rent owing on parcel B for the remainder of the lease term. No further rent shall be required and there is no entitlement to rebate in regard to the rent payment. MOTION by Commissioner Meyer to approve the June 2, 2011 minutes as amended. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 3. Election of Officers Paul Bolin, HRA Executive Assistant Director, said that the HRA by -laws require the Commissioners to elect a Chair and Vice -Chair to one -year terms. Staff recommends that the Authority hold election of a Chair and Vice - Chair. MOTION by Commissioner Holm to nominate Larry Commers as Chair and Pat Gabel as Vice Chair. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Consideration of Resolution — Purchase of Sale of Property — Housing Replacement Program (HRP) Paul Bolin, HRA Assistant Executive Director, said that as Staff has worked to acquire properties for program, different sellers request different information / question authority of staff / HRA funding, etc. A resolution was drafted to more clearly state what is already in HRA by- laws addressing these concerns. Staff recommends approval of resolution found in Authority packet. Chairperson Commers said that there is no change to what is currently being done in the purchase of properties. Mr. Bolin said that is correct, this just states in one sentence that the HRA Assistant Executive Director has the authority to sign purchase agreements rather than referring to the by -laws. MOTION by Commissioner Gabel to approve the Consideration of Resolution — Purchase of Sale of Property — Housing Replacement Program (HRP). Seconded by Commissioner Holm. Commissioner Meyer asked if there was anything in the resolution that bypasses the Commissioners participation. Mr. Bolin said no, this is just in regards to signing the purchase agreements. INFORMATIONAL ITEMS: 1. Home Improvement Demonstration Project Update Paul Bolin, HRA Assistant Executive Director, said that a closing date of August 10th has been set for 465 Mississippi Street. It was purchased for $56,500 and will be demolished. The demolition RFP's / Blight Resolutions / Phase VII documents are being prepared for September's meeting. This is for the properties at 465 Mississippi Street, 511 Hugo Street, and 381 Ironton Street. Mr. Bolin said that HRA will award a contractor to do the demolition work at the October 6h Authority Meeting. The demolition is to be completed in October / November. Mr. Bolin said that the home on 4757 2nd Street will be holding open houses every Wednesday for the month of August from 4:30 -6:30 PM; other dates and times to be determined. Chairperson Commers asked if staff would consider using Lenox again. Mr. Bolin answered Lenox could be used again. Commissioner Holm asked if recycled supplies or equipment were used in this project like the one on Mississippi Street. Mr. Bolin said that the kitchen cabinets were reused and refinished. New doors were built to go on the old cabinets. There were not enough cabinets for the new kitchen so some new cabinets were purchased from liquidators. Commissioner Gabel asked if the remodel exceeded the budget. Mr. Bolin answered no; the contract was written as a "not to exceed" agreement. Commissioner Meyer asked about the furnace. Mr. Bolin said that the original furnace was old and outdated and the duct work was oversized. A new furnace and air conditioner were installed and duct work was redone. Commissioner Eggert thought that Lenox provided a tremendous amount of value on this home. There was a lot of work done for the amount of money. 2. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said that in June /July two loans were closed which makes the total six year to date. There were a total of three Remodeling Advisor Visits also making a total of six year to date. Mr. Bolin said that residents have had a lot of water problems and staff has sent quite a few people to CEE to see what programs are out there. One home had 25" of water in the basement; water is seeping into the homes and insurance isn't covering flood damage. This leaves people in a tough spot. Some people do not qualify for our loan program because their income is too high. Paul encourages anyone who has had a flooded basement to call him and he will get them in contact with some assistance. Non Agenda Items Mr. Bolin said that a new Guidebook has been distributed to the Authority. Becky has updated the tax increment finance book. Copies will be at the library and City Hall if people would like to see it. Northstar Rail Schedule Chairperson Commers asked if HRA had an agreement on how many stops the rail should be making. Mr. Bolin said that there are a number of agreements in place between the different parties. When it comes to the actual operations of the train and scheduling, it is just like the bus service and is a Metro Transits schedule. They have the right to make adjustments as needed. Local communities do not have a say in the changes of bus or train schedules. There was a problem at the Fridley station because the third rail has not been installed yet so it doesn't allow them to move more trains through this area. A lot of train traffic goes through the Fridley Station and the North Star trains meet up at the same time, one has to wait before the next one can unload. This was happening at 6:20 am and 5:40 pm; these two stops have now been eliminated. Commissioner Gabel asked how a two minute delay can be a problem. Mr. Bolin stated where it causes problems is that the train is two minutes late and people end up missing connections on other transit systems like the bus and light rail. It all comes down to scheduling and there is no other way to make it work. Once the third rail is put in place we will be back on a more frequent schedule. They also looked at the number of riders and in the morning there were only five people getting on and six people getting off in the evening. Commissioner Gabel asked what will happen during Twins and Viking games. Mr. Bolin said this will not affect that schedule. Commissioner Holm said that if people are downtown and want to go to Fridley and the train doesn't stop in Fridley, it will be frustrating for people who don't ride every day because they can't rely on where it will stop. Mr. Bolin agreed it could be a problem. Chairperson Commers asked what the Anoka Authority had to say about this. Mr. Bolin said people getting off further down the line think this is great because their trip is shorter; those further south see it as a real inconvenience. Chairperson Commers asked if there would be a review of the decision_ or a process of review. Mr. Bolin answered no; unfortunately Metro Transit has the last say in scheduling. They know that Fridley is not happy with this. They will work on the third line and further look at other ways to increase ridership. Commissioner Gabel asked what the status was on the third line Mr. Bolin said he did not know much but it is extremely expensive. The reason some of the people with North Star and Anoka County were so in favor of the Duluth line is because that requires the third rail to go in. Staff will keep working on this as HRA has a huge investment on the rail. Faulkner Proiect Mr. Bolin said that Faulkner has completed the first building and people are moving in already. Faulkner hopes to start phase two in September. If people don't fill up the first building he may delay phase two until spring and take all equipment off site. Sandee's Site Building plans have been turned in to the city and MN Pollution Control information has been received to continue with demolition. Demolition, tree clearing and digging of the pond will begin on the 17th of this month. The pond will not be a regional pond; it will just serve their site. HRP Update Mr. Bolin said that the home on 465 Mississippi Street was purchased for $56,500. This is a foreclosure and the homeowner demolished the interior of this home and it is not safe. It will need to be demolished. Review of Property and Liability Insurance Mr. Bolin said he has tried compiling questions the Authority had into one packet. League of MN Cities does a nice job of annually going in and updating insurance information on insurance for city volunteers and elected officials. Commissioner Gabel said that a tornado is such a unique occurrence. It is wise to look into other insurance but she didn't see the need to carry insurance on something that doesn't happen very often. Mr. Bolin said that most properties HRA purchases are torn down. Regarding the tornado damage, FEMA will pay for 75% of cost to fix up the home affected by tornado. Staff is trying to get the state to cover the other 25 %. There is a good chance that damage will be covered 100 %. Commissioner Meyer said that in general HRA is at no more risk than any other Commission in the city. They too are under the same insurance coverage. Chairperson Commers said that HRA's biggest claim is if there was an inverse condemnation claim. These are excluded from the insurance policy. HRA will have to view the service agreement and see what it says. ADJOURNMENT: MOTION by Commissioner Gabel to adjourn. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:15 P.M. Respectfully Submitted, L-M at 14�( 1 � ? Krista Monsrud, Recording Secretary ACTION ITEM ri HRA MEETING OF SEPTEMBER 10 2011 CrTY OF FRIDLEY To: William W. Burns, Executive Director OV Paul Bolin, Asst. Executive Director From: Darin R. Nelson, Finance Director Rebecca Kiernan, Accounting Specialist Date: August 19, 2011 Re: Resolutions Approving Interfund Loan between General Fund & TIF District # 18 and Interfund Loan between General Fund & TIF District #19 Attached are Resolutions approving Interfund Loans granted between the General Fund and TIF Districts 18 & 19. In 2001, the Office of the State Auditor, required Housing and Redevelopment Authorities to issue Resolutions for Interfund Loans. When Ehlers & Associates filed our TIF Reports for 2010 this past month, it was discovered that in the years of 2005 through 2008, some of the interfund loans were not issued via resolution. They are as follows: Fund 470 (Dist #18) 12/31/2005 TIF -Plan Expenditure $113,481.46 12/31/2006 TIF -Plan Expenditure $ 47,186.72 12/31/2008 TIF -Plan Expenditure $ 50,000.00 Total $210,668.18 Fund 472 (Dist #19) 10/31/2007 TIF -Plan Expenditure $ 40,000.00 12/31/2008 TIF -Plan Expenditure $ 5,000.00 Total $ 45,000.00 Staff recommends a motion adopting Resolutions 2011 -07 & 2011 -08 for Interfund Loans from the General fund to TIF Districts 18 & 19. HRA RESOLUTION NO. 2011 -07 RESOLUTION APPROVING INTERFUND LOAN BETWEEN GENERAL FUND AND HRA FUND 470 TAX INCREMENT FINANCE DISTRICT GATEWAY WEST BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority ") as follows: Section 1. Recitals. 1.01. The Authority is authorized by Minnesota Statutes 2001 Supplement Section 469.174, subdivision 3 and Section 469.178, subdivision 7 to approve by resolution any interfund loans made after July 31, 2001 that are to be repaid with tax increment from any of the Authority's tax increment financing districts. 1.02. The Authority is authorized to disclose by resolution the terms of the interfund loan, i.e. principal amount of loan, interest rate, and length of loan. 1.03. The Authority is authorized to limit the principal amount of the interfund loan to the largest negative cash balance that existed at any one time in the fund receiving the loan. Section 2. Findines. 2.01. The Authority hereby finds it necessary to create an interfund loan between its general fund and the fund for the TIF District known as Gateway West. This loan is for the express purpose of providing financing for Gateway West projects until such time that enough tax increment is generated in the TIF district as needed to pay back the interfund loan. Section 3. Adoption of Interfund Loan. 3.01. The following are the terms of the interfund loan to be approved: Loan Amount Gateway West $ 211,000 Interest Rate: 0% Length of Loan: December 31, 2033 3.02. The Authority will create and maintain a loan payment schedule for the interfund loan that will be approved by this resolution. 3.03 The TIF District Gateway West will pay off the loan early if sufficient tax increment is available. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 1 ST DAY OF SEPTEMBER, 2011. LAWRENCE R. COMMERS, CHAIRPERSON ATTEST: WILLIAM W. BURNS, EXECUTIVE DIRECTOR HRA RESOLUTION NO. 2011-08 RESOLUTION APPROVING INTERFUND LOAN BETWEEN GENERAL FUND AND HRA FUND 472 TAX INCREMENT FINANCE DISTRICT MAIN STREET (INDUSTRIAL EQUITIES) BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority") as follows: Section 1. Recitals. 1.01. The Authority is authorized by Minnesota Statutes 2001 Supplement Section 469.174, subdivision 3 and Section 469.178, subdivision 7 to approve by resolution any interfund loans made after July 31, 2001 that are to be repaid with tax increment from any of the Authority's tax increment financing districts. 1.02. The Authority is authorized to disclose by resolution the terms of the interfund loan, i.e. principal amount of loan, interest rate, and length of loan. 1.03. The Authority is authorized to limit the principal amount of the interfund loan to the largest negative cash balance that existed at any one time in the fund receiving the loan. Section 2. Findings. 2.01. The Authority hereby finds it necessary to create an interfund loan between its general fund and the 472 fund for the TIF District known as Main Street/Industrial Equities. This loan is for the express purpose of providing financing for Main Street projects until such time that enough tax increment is generated in the TIF district as needed to pay back the interfund loan. Section 3. Adoption of Interfund Loan. 3.01. The following are the terms of the interfund loan to be approved: Loan Amount Main Street/Industrial Equities $ 450 Interest Rate: o 4 W10 Length of Loan: December 31, 2034 3.02. The Authority will create and maintain a loan payment schedule for the interfund loan that will be approved by this resolution. 3.03 The TIF District Main Street - Industrial Equities - will pay off the loan early if sufficient tax increment is available. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 1 ST DAY OF SEPTEMBER, 2011. ATTEST: WILLIAM W. BURNS, EXECUTIVE DIRECTOR LAWRENCE R. COMMERS, CHAIRPERSON COMMUNITY DEVELOPMENT k` DEPARTMENT HOUSING AND REDEVELOPMENT AUTHORITY Memorandum DATE: August 10, 2011 TO: William W. Burns, City Manageri FROM: Paul Bolin, Assistant Director of HRA Becky Kiernan, HRA Accountant SUBJECT: Consider HRA Tax Levy for Taxes Payable in 2012 Since 1996, the HRA has utilized a tax levy to help support its housing rehabilitation programs. The levy is equal to .0185% of the taxable market value of all real estate and personal property. The tax levy will allow the Authority to collect approximately $434,000, based on a city -wide tax market value of $2,345,374,800. In terms of the impact on taxpayers, the levy would cost $27.75 per year for a home valued at $150,000 and $185.00 per year for a commercial property valued at $1,000,000. The revenues raised by the levy are directed towards ongoing and future redevelopment priorities. State Statutes require the consent of the City Council, prior to the tax levy becoming effective. The City Council will act on this item on September 12th. As a final note, the HRA tax levy will be certified to the County Auditor on September 15, 2011. Recommendation Staff recommends that the Authority approve the attached resolution at their regular meeting on September 1, 2011. Attachment H:\—Paul's Documents \HRA\HRA Agenda Items\2011\September 1, 2011\2012 HRA Memo (HRA Tax Lzvy).docx HRA RESOLUTION NO. 2011- 05 RESOLUTION ADOPTING A 2011 TAX LEVY COLLECTIBLE IN 2012 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. The Authority is authorized by Minnesota Statutes Section 469.033 to adopt a levy on all taxable property within its area of operation, which is the City of Fridley, Minnesota (the "City"). 1.02. The Authority is authorized to use the amounts collected by the levy for the purposes of Minnesota Statutes Sections 469.001 to 469.047 (the "General Levy "). Section 2. Fes. 2.01. The Authority hereby finds that it is necessary and in the best interests of the City and the Authority to adopt the General Levy to provide funds necessary to accomplish the goals of the Authority. Section 3. Adoption of General Levy. 3.01. The following sums of money are hereby levied for the current year, collectible in 2012, upon the taxable property of the City for the purposes of the General Levy described in Section 1.02 above: Total General Levy: .0185% of Taxable Market Value Amount: Maximum Allowed by Law Section 4. &e 'port to City and Filing of Levies. 4.01. The Executive Director of the Authority is hereby instructed to transmit a certified copy of this Resolution to the City Council for its consent to the General Levy. 4.02. After the City Council has consented by resolution to the General Levy, the Executive Director of the Authority is hereby instructed to transmit a certified copy of this Resolution to the County Auditor of Anoka County, Minnesota. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA THIS 1st DAY OF SEPTEMBER, 2011. LAWRENCE R. COMMERS - CHAIRPERSON ATTEST: WILLIAM W. BURNS - HRA EXECUTIVE DIRECTOR ACTION ITEM i' HRA MEETING OF SEPTEMBER 1, 2011 MY OF FRIDLEY Date: Aug am Burns, City Manager q� To: W ill ty �i From: Paul Bolin, Asst. Executive HRA Director Sub* act: Housin I Replacement Program - Phase VII Creation Attached for Authority consideration is a resolution approving Phase VII of the Housing Replacement Program's (HRP) scattered site tax increment - financing district. In late 2010, the Authority and the Council approved an amended and restated plan for the HRP. The restated plan gave the Authority the ability to add Phases (parcels) to the program, by resolution. 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. Since the program originally began in 1995, the City has approved six phases for a total of si properties. 0 total special arcels, inclusive of the 277 properties lalready in the program. designate up to 100 p The parcels included in Phase VII include: Purchase Price: Address: $56,500 465 Mississippi Street $65,000 551 Hugo Street $50,000 381 Ironton Street Recommendation Staff recommends that the Authority approve the attached resolution amending the Housing Replacement Program to include Phase VII. 'L. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2011- XX RESOLUTION APPROVING AND ADOPTING THE ADDITION OF PHASE VII TO 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: Section 1. Recitals. 1.01. It has been proposed that the Authority approve and adopt the addition of Phase VII 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, as amended; 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 "). 1.02. By City Resolution 66 -1995 adopted October 23, 1995, the City Council of the City (the "Council ") adopted a resolution approving a Housing Replacement District Plan and creating Housing Replacement District No. 1. 1.03. By City Resolution 2010 -99 adopted December 13, 2010, the Council approved a Restated Housing Replacement District Plan (the "Plan") enabling the Authority to add parcels to or delete parcels from the District. 1.04. The Act and the Plan specify the procedures whereby parcels may be added to and deleted from the District. 1.05. It has been proposed that three parcels to be included in Phase VII be added to the District. Section 2. Findings_. 2.01. The Authority hereby finds that it is necessary and in the best interests of the City and the Authority at this time to approve and adopt Phase VII to the District to achieve the Authority's and City's goal for acquiring blighted, undeveloped, or underdeveloped parcels for redevelopment or rehabilitation, and for resale as market rate housing. 2.02. The Authority hereby finds, determines and declares that the three parcels in Phase VII qualify for inclusion in the District pursuant to the Act and the Plan; and that the reasons k 4 and supporting facts for this determination are retained and available at the Authority Offices. 2.03. The Authority further finds, determines and declares that the parcels to be added to and certified within the District includes three vacant single- family dwellings located at: Parcel 1 551 Hugo Street PIN 03- 30 -24 -23 -0046 Parcel 2 381 Ironton Street PIN 03- 30 -24 -24 -0001 . Parcel 3 465 Mississippi ST PIN 14- 30 -24 -24 -0002 2.04. The Authority further finds, determines and declares that the intended reuse of these properties is market -rate, owner- occupied housing, pursuant to the Act and the Plan. 2.05. The Authority further finds, determines and declares that there are now 30 parcels in the District with the inclusion of the three Phase VII parcels. The maximum number of parcels that can be included in the District is 100 parcels. Section 3. Approval of Phase VII to the District. 3.01. The inclusion of the three Phase VII parcels to Housing Replacement District No. 1 is hereby approved and adopted by the Commissioners of the Authority. Section 4. Certification of Parcels. 4.01. The Authority shall cause this Phase to be filed with the Minnesota Department of Revenue, the Office of State Auditor and request that the parcels be certified with Anoka County. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS 1 ST DAY OF SEPTEMBER, 2011. ATTEST: William W. Burns, Executive Director MMB: 4832 - 3509 -3000, v. 1 K Lawrence R. Commers, Chairman ACTION ITEM ri HRA MEETING OF SEPTEMBER 1, 2011 MY OF FRIDLEY Date: August 19, 2011 To: William Burns, City Manager From: Paul Bolin, Asst. Executive HRA Director Subject: GWNE Real Estate Broker Services RFQ You may recall, from previous discussions, that the Authority had 3 years to create a T1F District once demolition of the vacant parcels started. As the demolition started in December of 2009, the Authority now has approximately 15 months to create a TIF District if needed for the development of the site. You may also recall that the Authority can delay collection of increment for an additional 4 years. Because of these timelines and the uniqueness of these parcels, staff is seeking approval to solicit qualifications from real estate brokers to assist in the marketing of the Gateway Northeast Properties along University Avenue. An "open house" will be held for interested brokers to view the parcels prior to submitting their letter of interest/qualifications. Staff will evaluate proposals based on the broker's experience in marketing similar sites, experience in different market segments, proposed marketing methods, experience working with governmental entities and references. Staff will review the qualifications and bring a recommendation to the Authority at their October 6th meeting.