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HRA 10/06/2011 - 6552P(.,&/IC October 6, 2011 HRA Meeting Regular Meeting Agenda 7.00 p.m. Call to order Roll call. Action Items 1. Approval of expenditures 2. Approval of September 1, 2011, Meeting Minutes 3. Approval of Agreement to Market and Build Home - 5735 3rd Street 4. Awarding of Demolition Contract - Housing Replacement Program Informational Items 1. Home Improvement Demonstration Project Update 2. GWNE Broker Solicitation Update 3. 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' t6 t0 O Z �% O C N y N N O Cn 0 m m N m N N N u5 incncninv�v�aa €� �� c�N��� o r-12.9.911.0211 vaavvv-as mtC cNrNNtO c mc c c c c c c c c M CM M M M M M f� f� m >'m O O, N i i 9 N LO LO LO t0 tO PM tO LL W Jm�MW Cl) LO 0 f--O to to to MO N cnit LOW 0 C O � NM�f- tOOMCDON�O CO f� LotC t[ LOO tp co M N N� CCDD d' CO M C)LO co to V COO co co M M M co O CO co co co O) co P v C � O 7 W � O a� �\ Y I 1 m s �.i y E mr a o co W N_ 0 CA N l0 O H O c 0 N E 2 O_ to CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION SEPTEMBER 5.2011 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:30 p.m. ROLL CALL: MEMBERS PRESENT: 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 Darin Nelson, Finance Director, Treasurer Jim Casserly, Development Consultant MOTION by Commissioner Holm 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 August 4, 2011 Meeting Minutes MOTION by Commissioner Holm to approve the August 4, 2011 minutes. Seconded by Commissioner Eggert. Chairperson Commers noted that item number four was not finalized in the minutes. He requested to add the following: UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY Commissioner Gabel asked to amend number four first paragraph to read: Paul Bolin, HRA Assistant Executive Director, said that as Staff has worked to acquire properties for HRP and different sellers request different information, question authority of staff or HRA funding. A resolution was drafted to more clearly state what is already in HRA by -laws and purpose for acquisition of property. Staff recommends approval of resolution found in Authority packet. MOTION by Commissioner Eggert to approve the August 4, 2011 minutes as amended. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 3. Approval of Resolutions Approving Interfund Loans Paul Bolin, HRA Assistant Executive Director, said that recent changes to OSA TIF reporting requirements revealed that some year -end interfund loans were missing resolutions. Interfund loans were made from the HRA General Fund to TIF Districts #18 and #19. Staff recommends approval of the attached resolutions, formally recognizing the interfund loans. MOTION by Commissioner Holm to approve the resolution number 2011 -07. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY MOTION by Commissioner Gabel to approve the resolution number 2011 -08. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Approval of 2011 Tax Levy for Taxes Payable in 2012 Paul Bolin, HRA Assistant Executive Director, said that MN Statutes authorize HRA's to levy properties within their community to support housing and redevelopment efforts. The levy is equal to .0185% of taxable market value. The 2012 levy will allow the Authority to collect $434,000. This amount is down from $473,000 in 2011 and $498,000 in 2010, as the market value has decreased by nearly $209M. Mr. Bolin said that the impact on the taxpayer would be $27.75 per year on a home valued at $150,000 or $185.00 per year for a commercial property valued at $1 million. Staff recommends approval of the resolution consenting to the HRA Tax Levy. This provides HRA the ability to fund ongoing and future redevelopment efforts and the ability to meet housing needs. The levy will be certified and delivered to the county on 9/15/11 and City Council will act on this item on 9/12/11. MOTION by Commissioner Meyer to approve the 2011 Tax Levy for Taxes Payable in 2012 Resolution Number 2011 -05A. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 5. Approval of Phase VII — HRP Paul Bolin, HRA Assistant Executive Director, said that last December the Authority approved an amended and restated plan for the HRP. Homes can be added through an HRA Resolution, provided the parcels meet required criteria. Once in the program, the Authority is able to collect increment for 15 years on improvements. Staff recommends approval of Phase VII of the Housing Replacement Program. Chairperson Commers asked if anything was worth salvaging in any of the homes involved in this phase. Mr. Bolin said they will look at it and salvage whatever they can to keep demolition costs down. MOTION by Commissioner Eggert to approve the Phase VII — HRP Resolution Number 2011- 06. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 6. Authorization of Solicit Qualifications for Real Estate Broker Services — GWNE Paul Bolin, HRA Assistant Executive Director, said that the Gateway NE / University Avenue demolition of buildings started in December of 2009. The Authority has 5.7 acres of developable land along the East side of University Avenue. It now has 15 months to create a TIF District for this area. Staff is requesting authorization to solicit letters of qualifications from interested brokers to market the site. Staff will bring forward a recommended broker to the October 6th meeting. Chairperson Commers asked if there were any other ways to market that property. Commissioner Eggert said that he uses a broker to field calls. He thinks it would be a challenge for Paul to field calls. Chairperson Commers thought it would be a good idea to put together a brochure to send out. Commissioner Eggert said that a broker would do that for the HRA. MOTION by Commissioner Eggert to approve the authorization to solicit qualifications for real estate broker services - GWNE. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS: 1. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, reported that in August two loans were closed making a total of eight year to date. There was one remodeling advisor visit making a total of seven year to date. Commissioner Eggert asked if staff had any future acquisition property leads. Mr. Bolin said that they are looking for a split home but nothing is out there that meets our criteria. Currently very few foreclosures are coming into the market. Staff is looking every day. Some homes are too nice and others have unrealistic prices for the condition of the home. ADJOURNMENT: MOTION by Commissioner Meyer to adjourn. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:15 P.M. Respectfully Submitted, Krista Monsrud, Recording Secretary ■► ACTION ITEM ri HRA MEETING OF OCTOBER 6, 2011 MY of FRUXEY Date: September 27, 2011 Q' To: William Burns, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subject: Agreement to Market & Build Home - 5735 3rd Street Staff was recently approached by realtor Tim Golie & builder Mike Torkleson seeking an opportunity to build and sell a new home on one of the vacant Gateway West lots. The team appears eager to deliver a salable product that will add value to the neighborhood while respecting the variety of home designs already found in the Hyde Park/Gateway West neighborhood. The builder and staff have reached agreement on a home design that will incorporate cement board, stone and wide trim boards on the exterior of the home. The home is proposed to have 2 bedrooms, 1 bathroom, 3 garage stalls and an unfinished basement to keep the home price down and allow for future expansion. The builder is asking the Authority to change the terms on our standard lot reservation agreement to 9 months. The builder and his realtor will actively market the home sketch and lot on the MLS. Once a buyer is found a development agreement will be signed to ensure the home is built to the Authorities criteria for the Gateway West neighborhood. At the time of wntin this memo, staff is waiting for the revised home plan and a signed lot reservation for , w'th an acceptable purchase price from the builder. Staff expects to bring both to the thority at next week's meeting. Provided the builder delivers his final plan and signed lot reservation form, staff will recommend the Authority approve the 9 month lot reservation agreement with Mike Torkelson Development. ACTION ITEM ri HRA MEETING OF OCTOBER 6, 2011 MY OF FRIDLEY Date: September 24, 2011 To: William Burns, Executive Director AAP From: Paul Bolin, Asst. Executive HRA Director Subiect: Housing Replacement Program — Awarding of Demolition Bid Staff worked with the City's Public Works Department to carry out the formal bidding process for the demolition of the following properties: 465 Mississippi Street 551 Hugo Street 381 Ironton Street The three homes were purchased for inclusion in the City's housing replacement program. After demolition the lots will be placed into the program's scattered site TIF District and eventually sold to a buyer /builder team. The Authority will use the increment to pay a portion of its acquisition and demolition expenses. Additionally, staff has initiated the process to split the Hugo Street property into two buildable lots, 75' in width. A notice to solicit interested contractors was placed in both Finance & Commerce and the Fridley Focus. The bid opening was held at 2:00 PM on September 23rd. A total of 5 bid packets were sent out and 4 contractors submitted bids for the work. Bid amounts ranged from $46,669.00 to $68,658.32, with the lowest bid being submitted by Veit Companies. Recommendation: Staff recommends the Authority award the demolition contract to Veit Companies. Staff is very familiar with the quality of the demolition work done by this firm, most recently working with this group in 2010. INFORMATIONAL ITEM HRA MEETING OF OCTOBER 6, 2011 CrrY OF FRIDLEY Date: September 27, 2011 To: William Burns, City Manager 44P From: Paul Bolin, Asst. Executive HRA Director Subiect: Fridley Foundations Home Complete I am relieved to finally report that the home at 4757 2nd Street has been completed and officially made available for sale on the MLS. Though many difficulties were encountered over the course of remodeling this home, the end product is a home the Authority can be proud to offer for sale. The future buyer of this home should rest well knowing that it is essentially a new home. In addition to the planned remodel and the reworking of the electric and plumbing, the HRA replaced the sewer lateral for this property. After many months of none /little use the giant maple roots in this older neighborhood found their way into the clay pipe, actually breaking the pipe in a number of places. Every component of this home is now in new condition. After reviewing a number of comparables and following the housing market, the home was placed on the MLS with a listing price of $139,900. The home had one showing this past weekend and we anticipate a number of showings over the next few weeks, now that the home is complete. Staff plans to hold additional open houses of the finished home from 4:30 to 6:30 on these upcoming Wednesdays: October 5th and October 19th. A recap of all costs follows: Home Purchase Price $80,000 Remodel Cost $60,000 Dangerous Tree Removal & Trimming $1,800 Core filling of Basement Wall $1,500 Sewer Main Repair & Replacement $9,000 TOTAL INVESTMENT $152,300 AV INFORMATIONAL ITEM ri HRA MEETING OF OCTOBER 6, 2011 CITY OF FRIDLEY Date: September 27, 2011 To: William Burns, City Manager 40 From: Paul Bolin, Asst. Executive HRA Director Subiect: GWNE Real Estate Broker Services RFQ Earlier this month, the Authority authorized staff to solicit qualifications from real estate brokers interested in assisting with marketing of the Gateway Northeast Properties along University Avenue. A request for qualifications was sent to over twenty -five real estate companies that routinely broker properties to a large number of market segments within the north metro area. Brokers will be evaluated on their experience in marketing similar sites, experience in different market segments, proposed marketing methods, experience working with governmental entities and references. Letters of interest and statements of qualifications are due back on Friday October 7th. City staff will evaluate the information submitted and choose a small number of brokers interviews and reference checks. Staff will bring a recommendation forward to the Authority at their November 3 meeting. Fridley HRA Housing Program Summary Cover Page October 6, 2011 HRA Meeting Report Loan Application Summary Loan Origination Report Remodeling Advisor Description Loan application activity (e.g. mailed out, in process, closed loans) for Aug. to Sept. 15th and year -to -date. Monthly loan originations and year -to- date. Shows the number of field appointments scheduled and completed for the Remodeling Advisor Services administered by Center for Energy and Environment. H:\—Paul's Documents\HRA\HRA Agenda Items\201 1 \0ctober 6,201 Mousing Program CoveiOctober.doc to d a N (D CD rc+ (D Q 7 N O F� N O -h CU �t Z c m 0 01 a V d O N N e� O rt O c r+ CL 0 m N 0 oni fD 7 rt O n n O c r0+ a O a m A O 7 m N CL O 3 O O Q 7 0q r+ S fD M a n d O 7 I O 3 r+ 3' A n m m co rr LA. m O N -0 O a n n � y H O N n O O y N CD N Q C 10 0 0 0 0 0 0 0 0 0 d r0+ m M M n y N O 0 0 0 O w W N v 0 Q N O - - m � � " D 'a (DD M. OA of m T T T T D D O 0 = -0 Q D N N Q o D D D D !� rn cu N M M W 3 0 0 X m Q 0 o `C d 5 m 3 3 C� rn ci 3 3 -o (D r- M fD D m = O --1 j 7 C Q w r. -S S d O% G �G Q O r+ d 3 0) F-A l j1 .n 6 r+ 0 T T C 3 r 0 S 0 d 0 X X T� c N Q 3 C -O C O 0 Q T 0 m CL n O C O � d .. M o M -0 O n Sr O O o 0 0 0 0 � iF N O N -0 O a n n � y H O N n O O y N CD N Q C 10 0 0 0 0 0 0 0 0 0 d r0+ m M M n y N O 0 0 0 O w W N v 0 Q N 00 1 0 0 0 N O O N N F- w 0 O y N 0 m N Q -o D 0 a 0 0 0 N N Q d rh O N 00 1 0 0 0 N O O N N F- w 0 O y N 0 m N Q e Fridley HRA # of Projects % of Total Bathroom remodel 0% Kitchen remodel 9/15/2011 General plumbing 0% Heating system 0% Loan Originations 0% Basement finish - 0% Insulation Programs This Month - 00% 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 Garage - 0% Driveway /sidewalk Total $ $ 35,602.00 $ 35,602.00 Funding Sources This Month Previous Months Since 1/1/2011 Fridley HRA inc Revolving & FRID.LAST $ $ 51,427.00 $ 51,427.00 MHFA FUF /CFUF $ $ 10,100.00 $ 10,100.00 Fridley Discount portion for CFUF $ - $ - $ Met Council $ $ $ - CDBG /HOME S $ $ - CEE Energy $ $ 31,335.63 $ 31,335.63 other $ $ - $ Total $ - $ 92,862.63 $ 92,862.63 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 6 Duplex - Tri -Plex - 4 to 9 Units - 10 to 20 Units - 20 +Units _ - Total - 6 Types of Improvements Interior # of Projects % of Total Bathroom remodel 0% Kitchen remodel 0% General plumbing 0% Heating system 0% Electrical system 0% Basement finish - 0% Insulation 0% Room addition - 00% Misc. interior projects - 0% Foundation - 0% Exterior Siding/Fascia /SofFrt - 0% Roofing - 0% Windows /Doors - 0% Garage - 0% Driveway /sidewalk - 0% Landscaping - 0% Misc. exterior projects - 0% 6 6 M O O. fD D CL O 3 O r~ S v 3 O C 7 y o3i n n� O aQ cD w y O1 M O -fi "S O 3 d N 3 d O h n O 3 CD C rf m iC rt 3 Q rF �h 1 rF m "1 < O C N 3 O Fr N :;o lD fD a r 3 h rD O S Q (D Ln �. 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