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PL 11/18/1981 - 6764City of Fridley AGENDA PLAP�NING COMMISSION MEETIN6 WEDNESDAY, NOVEMBER 18, 1981 7:30 P.M. Pages CALL TO ORDER: ROLL CALL: APPROVE PLANNING COMMISSION MINUTES: NOVEM6ER 4z 1981 1- 10 1. NORTH AREA REDEVELOPMENT PLAN AND TAX INCREMENT PLAPJ 11 - 39 Z. RECEIVE HOUSING & REDEVELOPMENT COhA1ISSI0N MINUTES: WNITE 3. RECEIVE ENERGY COMMISSION MIF�UTES: OCTOBEP. 27, 1981 ORCHID 4. OTHER BUSINESS: ADJOURNMENT: CITY OF FRIDLEY PLANNING-COMMISSION MEETING, NOVEMBER 4, 1981 � CACC TO ORDER: Chairman Harris called the November 4, 1981, Planning Commission meeting to order at 7:30 p,m. ROLL CALL: Members Present: Mr. Harris, Mr. Oquist, Ms, Gabel, Mr. Svanda, Mr. Kondrick, Ms. van Dan, Mr. Saba (arr. 7:45 p.m.) Members Absent: None Others Present: Jerrold Boardman, City Planner Jack Maxwell, 3205 Silver Lake Road, St. Anthony Dave Harris, 470 Rice Creek Blvd. N.E. Ralph Virgills, 8298 University Ave. N.E. (Raffaele's Supper Club) Bruce Hay, 39 North 0akes Road, St. Paul, MN 55110 APPROVAL OF SEPTEMBER 16 1981 PLANNING COMMISSION MINUTES: MOTIQN BY MS. GABEL� SECOtdDED BY MR. OQUIST, TD APPROVE THE SEPTfiMBER 16, 1981� PLANNING COMMISSION MINUTE5 RS WRITTEN. UPON A VOICE VOTE, ALL VOTSNG AYE� CHAIRMAN HARRIS DECLARED THE MOTION CRRRIED UNANIMOUSLY. 1. TABLED SEPTEMBER 16, 1981; PUBLIC HEARING: CONSIDERATION OF A PROPOSED PRECIMINARY P T, P:S: 8-03, 0 K ESTATES; BY Q RISTIANS�N: Being a rep at of Lots 5, 6, an , Lucia Lane A dition, genera y ocated in the Northeast corner of Highway #65 N.E. and Mississippi Street N.E. Mr. Boardman stated Mr. Christianson has verbally requested that this item be withdrawn as he cann�t put the package together with the landowner. 2. PUBLIC HEARING: SPECIAL USE PERMIT, SP #81-10, BY SUBURBAN HOMES INC.: Per Fridley City Code, Section 205.102, 3, N, to continue a mobile home sales lot, under new operation, on the Westerly 600 feet of the Southerly 320 feet of the Northerly 750 feet of the Northeast Quarter of the North- west Quarter of Section 12, the same being 7625 Uiron Road N,E. MOTION BY MR. OQUIST� SECONDED BY MS. VAN DRN� TO OPEN TXE PUBLIC HEARING ON SP #82-10 BY SUBURBAN AOMES, ZNC. UPON A VOICE VOTEj ALL VOTING AYE, CHAIRMAN HARRIS DECLARED THE PUBLIC XEARZNG OPENED AT 7:35 P.M. 4. 7981 PAGE 2 Mr. Boardman stated this special use permit is being brought back to the Planning Commission because of the change of operation on the property. In the April 6, 1977, P1_anning Canmission minutes, it stated that a special use permit was granted for a period of three years. Mr. Boardman stated this period was up last year, but with the change in operation, he wanted to bring it back to the Planning Commission. He stated City Staff has looked at the site, and there are some problems that need correcting: clean-up at the back of the property, screening of an LP tank, screening of the refuse container, maintenance of the hard surface area, and maintaining parking 5 ft. off the structure. Mr. Boardman stated that, generally, the special use permit has been complied with, but there are some things that Staff found were not in compliance. One was that the parking 1ot was not striped, and according to the iandscaping plan, there was a requirement for landscaping down the side at the time the permit was approved, and that has not been done. Mr. Boardman stated the new operator is in the audience if there are any questions. Mr. Bruce kay, _ 34 North Oakes Rd., St. Paul, stated he is one �f the operators of the operation, Suburban Hames, Inc., which is now leasing the lot from Mr. Jack Maxwell, who is the owner of the property. He stated they are licensed under the State of Minnesota as a mobile home dealer and lease and operate a mobile home sales lot on Mr. Maxwell's property. Mr. Harris asked Mr. Maxwell if he was aware of the stipulations placed on the special use permit back in 1977. Mr. Jack Maxwell, 3205 Silver Lake Road, stated he was not aware of the screening, but he was aware of the iandscaping. He stated that prfior to the time pf the approval of the special use permit, a�ember of the City Staff came out and looked at the property and said the landscaping had not been done because it was supposed to be greenery and crushed rock had been placed instead. There was a discussion at that point that the crushed rock was there primarily because they bring mobile homes through there, and greenery would have ta be continually replaced, while the crushed rock can be put back to good appearance with a mini- mum of expense. At that time, the city inspectors said that the crushed rock was very attractive and was done in a high, pleasing manner, Mr. Maxwell stated they have attempted to keep it that way, He stated he could not speak for the trash in the back as he has not been back there. Mr. Hay stated that as ieasees of the lot, they feel it is probably one of the most attractive lots, as it now stands, in the whole City of Minneapolis. It is we11 landscaped, has a nice sign, and they are very happy with it. Mr. Boardman stated he has no problem with the front landscaping, but in the landscaping pTan submitted to the City, it showed screening down the side, which has not been done. (Mr. Saba arrived at 7:45 p.m,) PLANNING COhN1I5SI0N MEETING, NOVEMBER 4�1981 PAGE 3 G Mr. Dave Harris, 470 Rice Creek Blvd. N.E., stated he knows both Mr. Maxwell and Mr. Hague quite well. He stated Mr. Maxwell has always tried to maintain a nice attractive sales lot. As the adjoining property owner, he is convinced that Suburban Homes, Inc., will continue to run a good sales lat. Mr. 8oardman stated he is concerned about the stipulations he had mentioned earlier. He has had a complaint from Strite-Anderson about the garbage in the back of the lot. MOTION BY MIt. S1SBA, SECONDED BY 1�II2. KONDRIQC, TO CL0.SE TXE PUBLZC HEARING ON SP 1i82-10 BY SUBURBRN HOMES� INC. UPON A VOICE VOTEi ALL VOTING AYE� CXAZRMAN HARRIS DECLARED THE PUBLIC HEARING CL0.SED AT 7:47 P.M. Mr. Dave Harris stated that, as he had mentioned earlier, as the adjoining property owner to the north, he has no problems with the mobile home sales lot as it is now, but he felt it migfit eliminate some problems later on when the property is developed to the north if some type of screening fence would be put in along the north boundary of the lot. He stated that if this is a stipu- lation in the approval of the special use permit, he would be wi7ling to share equally in the cost of that fence. Mr. Boardman Stated that in a discussion with Strite-Anderson, they have expressed concern because some filling has been done in the back of Mr. Maxwell's lot. This filling has created some run-off problems. They indicated there is a drainage system along the northern part of Strite-Anderson, and there is supposed to be a catch basin, but that catch basin has been filled over causing some drainage problems in the back area. Mr. Boardman stated this drainage problem and a solution should be discussed and worked out with the City Engineer befiore the special use permit goes to City Council. EY BY 25 VIRON ROAD N.E., WITH�TXE FOLLOWING 2. SCREENING BE PROVIDED AREAS. THE CITY�COUNCIL:� CITY OF TRNK. AT UPON A VOICE VOTE, ALL VOTIN6 AYE� CHAZRMAN HARRIS DECLARED THE MOTION CARRIED UNANIMOUSLY. . PLANNIN6 COMMISSION MEETING, NOVEMBER 4, 7481 PAGE 4 Mr. Harris stated SP #81-10 is recomnended to City Council for approval with stipulations. It will go to City Council on Jan. 11, 1982. IIy:I�:V -05, BY DAVID rrom in-z �neavy inausLriai areas� tio K-s �generai muitiple fa Section 2, Parcel 3000, except the Easterly 600 feet, located Northeast quadrant of 83rd and Main Street N.E., to allow the of a 360 unit apartment compiex, Rezone ily units), in the construction MOTFON BY MS. CABEL� SECONDED SY MS, VAN DAN� TO OPEN THE PUBLIC HEARING ON ZOA 1�81-OS BY DAVID HARRIS. UPON A VOICE VOTE� ALL VOTING RYE� CHASRMAN HARRIS DECLARED TXE POBLIC NEARING OPENED RT 8;03 P.M. Mr. Boardman stated the City is in the process of setting up another tax increment district which includes Mr. Dave Harris' property. 7his tax increment district will come before the Planning Commission at their next meeting. Mr. Boardman stated the tax increment district is being established according to State Law, Chapter 273, with justification based on soil conditions which is a blighted condition. He stated they have soil borings on the site and the soils are very bad. There is up to 25 ft, of peat in some areas, and there are also a lot of drainage problems. For this reason, the City Manager requested Staff to put together a tax increment district package for the Housing & Redevelopment Authority. The Housing & Redevelopment Authority is presently working on this district. The tax increment district will come to the Planning Comnission on Nov. 18, there will be a Housing & Redevelopment Authority public hearing on Nov. 19, and a pablic hearing before City Council on Nov. 23. Mr. Boardman stated that as a part of that tax increment district. Mr. Harris' proposal is also being submitted for rezoning for residential. He stated the City Council and the Planning Commission have had discussions about where housing could be developed in the City. This area is located just east of Springbrook Nature Center and is one of the areas designated in the Comprehensive Plan as a potential housing area. At this time, Staff would support the development of this project with a few stipulations: (1) a 15 ft. bikeway easement along the west boundary of the property for the access of a bikeway along Main St. to the nature center area; (2} rezoning be based strictly on the building permit appli- cation; (3) 33 ft. street easement across the north portion of the property; and (4) recreation be provided for the residents of the complex, Mr. Boardman stated this would be a 360-unit apartment complex and meets all code requirements. He stated Mr. Dave Harris will probably be applying for a street vacation of Main St, along Springbrook Nature Center. That street vacation is satisfactory to the City, and application wili be a separate process, With the street vacation, there will be adequate land to handle the 360 units. PLANNING COMMI55ION MEETING, NOVEMBER 4 1981 PAGE 5 Ms. Gabel asked what market these rental units will address. Mr. Dave Harris stated they propose to provide market rate financing rental units. Within that framework, they are operating under Subchapter 8 which requires them to provide 20% for low and moderate income housing. He thought that was the justification to meet the requirements for the City as required by Metropolitan Council and the Minnesota Housing Board and the justification for a tax increment district. Because of this, he did not want the Planning Comnission members to feel that the quality of the structure would be reduced. These are going to be very nice, attractive apartment units. Mr. Kondrick asked how many 3-bedroom units there would be. Mr. Dave Harris stated he would roughly estimate that 60% would be 2-bedroom, 3�� would be 1-bedroom, and 10% would be 3-bedroom. Mr, Boardman stated the City is presently processing a housing mortgage plan through the Minnesota Housing finance Agency. The federal government has cut off the single housing program, but they have left open the ability to sell housing mortgage bonds for multi-family housing. It is the same thing as industrial revenue bonds, only they are called housing mortgage bonds. They are tax exempt bonds and; therefore, the mortgage rates are lower income. He stated this plan goes to City Council on Dec, 7. He stated that as soon as the plan is completed, he will get copies to the Planning Comnission members so they can discuss it in depth at their next meeting. Mr. Saba asked if the units would be set up so the residents would pay their own utilities or would the owner pay the utilities and reflect it in the rent? Mr. Dave Harris stated he thought each unit will have its own service; that was the fairest and most equitable way. He stated they are required by law to build an energy efficient building. He stated he would guess these units will probably heat per square foot for less than alrtwst any house in the city. Mr. Saba stated the Energy Commission would like to see these new commercial developments and apartment complexes serve as a model for energy efficiency, if at all possible. Ms. van Dan stated that from the Human Resources Commission standpoint, they are always interested in seeing more apartments for the handicapped. Wou1d Mr. Harris consider including any apartments for the handicapped? Mr. Dave Harris stated they cannot and will not discriminate against anyone. They will provide the necessary facilities under the ordinance to facilitate the handicapped. He stated that, unfortunately, they are dealing with difficult soils which will require them to put a portion of the buildings out of the ground because of the high water table. It will require them to do some different things with the buildings. Depending upon the contours, it is possible that some of the first floor units could be designed for the handicapped, but probably not any on the second or third floors. PLANNING COMMISSION MEETING, NOVEMBER 4 7981 PAGE 6 � Mr. Kondrick asked when Mr. Harris would anticipate starting on the project if he raceives approval from the Planning Commission and City Council. Mr. Dave Harris stated he would like to start next spring. He stated it does take more to put the project together than just the rezoning and approval. It is a very difficuit financing market. Unless they are able to get the tax increment district in there and some financial help, this project will not be built here or anywhere else in the metropolitan area. Mr. Ralph Virgills of Raffaele's Supper Club stated he is very much in favor of this project. The area does not look good the way it is now. Mr. Dick Harris stated that if they are going to be putting this area into a tax increment district, perhaps they should take a look at the zoning in the entire area. He stated he has not seen the soil tests on Mr. Dave Harris' land, but from the soil tests he has seen, he felt it would be virtually impossible to develop that land as M-2 warehousing as they know it. Mr. Boardman stated he thought it was something the Planning Co�mnission should take a look at. If industria] does go in, they would probably have to look at a different type of industrial development. He was not even sure it was possible. He stated the City is looking at trying to solve the drainage problem in sane of the areas where the worst soil is. They are looking at the possibility of using the worst soil areas for ponding and retention and directing most of the water inio the Springbrook Nature Center area and creating some type of dam structure in the Springbrook Nature Center area. Mr. Dick Harris stated he thought they should get an engineering study of the whole area on both the surface drainage and the groundwater situation. The ground water situation may even be more critical than the surface drainage. If stated that if they are going to set this up as a tax increment district, they have to look at the whole area and solve the problem as an area, rather than on a piecemeal on-site basis. Mr. Boardman stated that is one of the purposes for setting up the area as a tax increment district. MOTION BY .�42. OQUIST� SECONDED BY MR. SABA, TO C7ASE THE PUBLIC HEARSNG ZOA �i81-OS BY DAVFD XARRZS. UPON A VOICE VOTE, ALL VOTING AYE� CHAIRMAN HARRIS DECLARED THE PUBLZC HEARING CLOSED AT 8:45 P.M. � Mr. Oquist stated he feit Mr. Harris' p7an is a good plan for th9s area and is a well conceived plan. It will also put people close to the Springbrook Nature Center. PLANNING GOMMISSION MEETING, NOVEMBER 4, 1981 PAGE 7 BY MR. OOUIST, SECONDED BY MS. VAN DAN, TO TNE 2. TXE REZONING BE i ;�20A�k81-05:�BY�DAVID-HARRIS TO REZONE FROM ,.�TO�ALLOW�THE CONSTRUCTION�OF R�360 UNIT�. THE THE PERMZTS UPON A VOICE VOTE, RLL VOTING AYE, CHAIRMAN HARRIS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Dick Harris stated ZOA #81-05 was recomnended to City Council for approval with stipulations. The public hearing before City Council would be on Nov. 23. 4. CONTINUED: REVIEW OF CHAPTERS 301, 302, AND 303 BY REQUEST OF THE CITY COUNCIL: Mr. Boardman suggested this item be tabled until he can have Mr. Steve Olson make recommendations on any changes. MOTZON BY MR. SVRNDR� SECONDED BY MR. SRBA� TO TABLE R&'VIEW OF CXRPTERS 30I� 302� AND 303 OF THE FRIDLEY CITY CODS. UPON R VOICE VOTE,RLL VOTING AYE, CHAIRMAN HARRIS DECLARED THE MOTZON CARRIED UNANIMOUSLY. 5, RECEIVE SEPTEMBER 8, 1981, COMMUNITY DEVELOPMENT COMMISSION MINUTES: MOTION BY MR. OQUIST, SECONDED BY MS. VAN DAN� TO RECEIVE TNE SEPT. 8� 1981, CQMMUNITY DEVEIAPMENT COMMISSION MINtITfiS. UPON A VOICE VOTE, ALL VOTING AYfi, CHAIRMAN XARRIS DECLARED THE MOTION CARRIED UNANIMOUSLY. . 6. RECEIVE SEPTEMBER 10, 1981, HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION BY MS. VAN DAN� SECONDED BY MS. GABEL� TO RECENE THE SEPT. 10� 1981� HOUSING 6 REDEVELAPMENT AUTHORITY MINUTES. UPON R VOICE VOTE, ALL VOTING AYE� CHAZRMAN XARRIS DECLARED THE MOTION CARRSED UNANIMOUSLY. 7. RECEIVE SEPTEMBER 21 1981, PARKS & RECREATION COMMISSION MINUTES: MOTION BY MR. KONDRICK� SECONDfiD BY MS. GABEL� TO RECEZVE TXE SEPT. 21� .I981, PARICS 6 RE'CREATION COMMIS5ION MZNUTES. UPON A VOICS VOTE, ALL VOTING RYE, CHRIRMAN HARRIS DECLARED THE MOTION CARRIED UNRNIMOUSLY. PLANNING COMMISSION MEETING, NOUEMBER 4, 1981 PAGE 8 ► 8. RECEIVE SEPTEMBER 22, 1981, APPEALS COMMISSION MINUTES: MOTION BY MS. GABSL� SECONDED BY MR. OQUIST, TO RECEZV& TXE SEPTEMBER 22� 1981� APPEALS COMMISSION MINUTES. UPON R VOICE VOTE, ALL VOTING AYfi� CNAIRMAN HARRIS DECLARED TNE MOTION CRRRIED UNANIMOUSLY. 9. RECEIVE SEPTEMBER 22 1981 ENERGY COMMISSION MINUTES: MOTION BY A�2. SABA� SECONDSD BY .tlR. KONDRICK� TO RECEIVE THE SEPTEMBER 22, .2981, ENERGY COMMISSION MINUTES. UPON A VOICfi VOTE, ALL VOTING RYE� CHAIRMAN XARRIS DECLARED THE MOTZON CARRIED UNANIMOUSLY. i0. RECEIVE OCi06ER 1, 1981 HUMAN RESOURCES COMMISSION MINUTES: MOTION BY MS. VAN DAN� SECONDED BY MR. SABA� TO RECEIVE THE OCTOBER 2� I981� XUMAN RESOURCES COMMISSION MINUTES. � Ms. van Dan stated the Planning Commission members had a copy of the work plan for the Human Resources Commission. One area the work plan addresses that also seems to be a problem for some of the other commissions is"communications". Mr. Boardman stated that because "cortmunications" is a goal for just about every one of the member commissions, the Planning Cormnission may want to look at it on the Planning Commission level, rather than at each individual commission. If they decide each individual cor�nission should look at it, then all of the comnissions should at least look at something similar. He stated Ms. Cayan had put together a 3-pronged approach to a"Communications Plan", which may be a workab)e plan for each of the cormiissions, Mr. Boardman stated that the member comnissions have decided that one of the ways of working with the City Council in specific areas with specific activities within the City is to put together a work plan. At the end of each year, that work plan will be formalized by the commissions and submitted to the City Council to inform the City Coun�il what each corr�nission's work plan is for the next year. At that time, the City Council can express concerns or give direction. Mr. Boardman stated he feels the preparation of the work plan does two things: (1J It acquaints the City Council with what the cortunissions are working on or what direction the commissions are planning on going; and {2} it allows the City Council to respond back to the commissions on those directions. Mr, Boardman stated it also helps Staff in the direction of the cortenissions, because they now know what the commissions wish to do and can channel staff time toward that direction. PLANNING C�MMISSION MEETING, NOVEMBER 4, 1981 PAGE 9 i Mr. Boardman stated he would like the Planning Commission to loak at this Communications Plan so they can decide whether they want to activate it at the Planning Cortpnission 7eve1 or at the level of the member comnissions. UPON A VOIC& VOTE� ALL VOTING AYE, CHRIRMAN HARRIS DECLARED THE MOTION CARRIED UNANIMOUSLY. 11. RECEIVE OCTOBER 13, 1981, COMMUNITY DEVELOPMENT COMMISSION MINUTES: MOTION BY MR. OQUIST, SECONDED BY MR. KONDRICK, TO RECEIVE THE OCT. l3� 1981, COMMUNITY DEVELOPMENT COMMISSION MINUTES. UPON R VOICE VOTE, ALL VOTING AYE� CHAIRMAN HARRIS DECLARED TNE MOTION CRRRZED UNRNIMOUSLY. 12. RECEIVE OCTOBER 13, 1981, APPEALS COMMISSION MINUTES: MOTSON BY MS, GABEL� SECONDED BY AII2. SRBA, TO RECEIVE THE OCTOBER I3, 198Z, RPPEALS COMMISSION MINUTES. UPON A VOICE VOTE� ALL VOTING AYE� CHAIRMAN HARRIS DECLRRED TXE MOTION CARRIED UNANIMOUSLY. 13. RECEIUE OCTOBER 19, 1981 PARKS & RECREATION COMMISSION MINUTES: MOTION BY MR. KONDRICK� SECONDED BY MS. VAN DAN� TO RECEIVE TXE OCT. 19� 1981� PARKS & RECREATIDN CO.MMISSION MINUTES. UPON A VOICE VOTE, ALL VOTING AYE, CHRIRMAN HARRIS DECLARED THE MOTION CARRIED UNANZMOUSLY. 14, RECEIVE OCTOBER 20, 1981, ENVIRONMENTAL QUALITY COMMISSION MINUTES: MOTION BY MR. SVANDA� SECONDED BY MI2. SABR� TO RECEIVE THE OCTOBER 20� .Z98Z� ENVIRONMfiNTAL QUALITY COMMISSION MINUTSS. Mr. Svanda stated the main discussion at the meeting was centered around trying to get some kind of recycling effort started in the City of Fridley, going beyond what SORT already has. They formulated a project committee and at the project committee meeting on Oct. 19, they discussed trying to get the garbage haulers who service the City of Fridley to a meeting to discuss with the haulers their views on source separation at the curb, in an effort to branch out from the experimental curb-side pickup that SORT is having in four neighborhoods. Mr. Svanda stated they also discussed recycling oil. Apparently, the City is considering digging up one of the empty fuel tanks from the old Standard Station and burying it by the SORT facility for people to dump their used oil. PLANNING COMMISSION MEETING NOVEMBER 4, 1981 PAGE 10 e Mr. Harris stated the old Phillips 66 Station has an oil sump for used oil. It is possible that the City could get that tank from Phillips 66. Mr. Svanda stated that recycling is going to be the Environmental Quality Commission's major project and their major goal. UPON R VOICE VOTE, ALL VOTING AYS, CXASRMAN HARRIS DECLARED THE MOTION CARRIED UNANIMOUSLY. 15. RECEIVE NOVEMBER 1981 DRAFT OF COMPREHENSIVE DEVELOPMENT PLAN: MOTION BY MS. VAN DAN, SECONDED BY MR. OQUIST� TD RSCEIVE THE NOVEMBER 3982 DRAFT OF THE COMPREXENSIYE DEVELOPMENT PLAN. Mr. Boardman stated this is the document that goes to City Council on Nov. 9 for approval and then to Metropolitan Council by Nov, i3. UPON A VOICE VOTE� RLL VOTING AYE, CHAIRMAN AARRIS DECLARED THE MOTSON CRRRIED UNANIMOUSLY. ADJOURNMENT: MOTION $Y MR. KONDRICK, SECONDED BY MR. SABA� TO ADJOURN THE MEETING. UPON A VOICE VOTE� ALL VOTING AYE� CHRIRMAN HARRIS DECLARED THE NOVEMBER 4� 1981, PLANNING COMMISSION MEETING ADJOURNED AT 10:30 P.M. RESPECTFULLY SUBMITTED: yn Sa a " Recording Secretary 12 NORTH AREA REDEVELOPMENT PLAN DESCRIPTION OF THE DISTRICT Introduction: The City of Fridley is located along the East Bank of the Missis- sippy River just north of the City of Minneapolis. Fridley is located in the corridor of Anoka County and serves as the passage way between Minneapolis and the North Central Suburbs, and is an important center of development in Anoka County. The City is a first ring Minneapolis suburb and as 'such developed initially as a"bedroom community" with only neighborhood convenience centers along major access routes creating strip comnercial. The Redevelopment District is a combination of this type of developement along with undeveloped industrial property. District Area: - The Redevelopment District is legally described in a separte section of this plan and constitutes the complete land area for the District. DISTRICT ELIGIBILITY A. Authority Under Minnesota State Law, local housing and redevelopment authorities may undertake the redevelopment projects for areas that are deterio- rated. M.S.A. 462.421 Subdivision 11 "Deteriorated areas mean any area, including slum areas with buitdinas or improvements which, by reason of dilapidation, obsoles- cence, overcrowding, faulty arrangement or design, lack of ventilation, light, and sanitary facilities, excessive land coverage or deleterious land use or obsolete layout, or any co�bination of these or other factos, are detrimental to the safety, health, morals, or welfare of the comnunity." Local housing and redeveloprient authorities may undertake rede- velopment projects that are directed at improving said deteriorated area. (M.S.A. 462.421 Subdivision 13). Minnesota State 1aw permits any work or undertaking. 7. To acquire bligfited areas or other real property for the purpose of removing, preventing, or reducing blight, blight- ing factors, or the causes of blight. 2. To acquire open or undeveloped land which is determined to be blighted...due to the existence of faulty planning characterized by the subdivison of sale of lots laid out... -1- ^ N �� STREET MAP-CITY OF FRIDLEY 13 .��.3� , a%` Q `: '�f� �� i 4 �wn unn � ��'.� � :'.i: • `�; � hi1FN! - ��., , �� + r-: `� ` • s e�s7. �t:. e y i �,. � . �—�' � j. r+..� � �� I e `�"�',i',+� ,r.� , t t I 1 Z 1 i ��' r�n[ ' ,�i y •ji � w.w.i.rw. � . �t` . f e .,. e t 1 /.�.r � I � % 1 �—T� I..� .�. .�.�T. 1• �j �• • � ,:.�"'... � I�I T .�.�.i. .�. � ''�.�.r,� M� � � � ��LS ' !I M 1I MUfll } � �� ry .�/I _. � . 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I �.�r.v�il�.rl � 1� i ' � � � I�� ^�� '{�� I 1 i r� � �'� _ . i � ��j��[I • 1� � •��L:� a � I .r II ..Y111L�,.. . � � _"___ ___'�� " _' ' � � $� �' � �J` , I I� � I yJM,-.l.-.i..�'W— -Mf____ ' � �_�io __r ��Y , ~J � ��:'' • ` ' e: !r t . ' � .v • � "' i + �e n , • n e n � � � �� ] � � � � � n � L :r i ' . � �, ( � � � -�� T . .TN . I . � Y . / � ! . I / I 1 � L' _�' „ ; •, -. . I T � .)�T Y � // - ---C. ` S *_ - - ip� E � MEA � �t RUN '�+ -" � " • � N : � �._ •. r.�-� � :1 . . .. � '. 3 I CN E5P � p � � � / -, . � � � •,. � -.: " :• ° " I � _. t � � .�tnit��e i I � / . _ I5 or inadequate size...which fiave prevented normal develop- ment of the land by private enterprise and have resulted in a statnant and unproductive condition of land potentially usefull and valuable... 3. To acquire land or space whith is vacant, unused, underused, or inappropriately used... B. EligibilitY The Redeveloqnent District is eliqible as a publicly as- sisted redevelopment district because the district is blighted by virtue of conditions of unusal and difficult physical characteristics of the ground which has left the area primarily undeveloped. The entire district is subject to unusualiy hi9h water table levels with unstable soil conditions which has prevented the normal development of tfie land by private enterprise and has resulted in a stagnant and unproductive condition of this prime location property, potentially useful and valuable for contributing to the public health, safety and general welfare. REDEVEL�PMENT GOALS AND OBJECTIVES 7fie fridley Housing and Redevelopment Authority and the Fridley City Council establish the following goals and objectives for the Re- development Project. These goals and objectives are an outgrowth of the fridley Comprehensive Development Plan. A. To promote and publically assist the develop�ent of the u�devel- oped and underutilitzed property in the Redevelopment District. This sha11 include the use of Tax increment financing to develop commercial and housing developments. 5uch assistance may include land "write down" costs, land acquisition and parcel assemblage to provide large land tracts for development, property acquisition and clearance for new developments, property acquisition and clear- ance of non-conforming ta�d uses that are near new developments, financial assistance in.the provisioo of public utilities, finao- cial assistance for the provision of necessary site improvements, and such other assistance that is in conformance with State law. To stimulate private investment to stabilize and properly balance the housing supply. C. To increase employment opportunities and employment alternatives through an active program of commercial development in those areas best suited for Lhis development. D. To increase the tax base of the City through cooperation and as- sistance to commercial and housing developers with consideration of full utilization of underutilized commercial and industrial properties. To provide a plan and continued planning for orderly commercial, industrial and residential expansion which allows for the most economical utlization of municipat services. F. To provide development and redevelopment opportunities that will -2- 16 allow for the construction of a variety of industrial and com- mercial services throughout the Redevelopment Project which would effectively serve the employment, housing and re- tai7 service needs of the City. G. To designate through official land use controls, areas best suited for residential, comnercial and industrial development. H. To maintain a healthy safe enviroronent throughout the Project Area. I. To provide various forms of financial assistance that ere deemed appropriate, logan and acceptable to private enterprise in their development efforts such as industrial revenue funding, tax ex- empt municipal revenue bonds, or state and federal loan and grant monies. J. To promote sound land use development procedures including area design standards, landscaping and lighting standards, architec- tural review of new developments, and such other standards that may be developed that promotes soutd land resource management. K. to continually update development and redevelopment plans, de- sign standards, and other official controls that will promote sound development> redevelopment, health and safety. SPECIFIC GOALS AND OBJECTIVES More specific goals and objectives will be developed with each tax increment financing plan for specific projects in the Redevelop�ent District. -� 17 REDEVELOPMENT PLAN The Redevelopment Plan includes all of the goals and object- ives included herein plus all other information inctuded in this plan and the tax increment plan as submitted by the Fridley Housing and Redev- olopnent Authority. The Redevelopment Plan establishes one (1) main area of redevelopment. This area will be included in a project reTated tax increment plan as required by Minnesota Statutes 1979 Supple- ment Chapter 273.74. The Q1a� wilt require financial findings of feasi- bility, separate contractural agreements between the City and developers, City approvals of land use, zoning and such other requirements that may be established, and compliance with the goals and objectives of this plan. There may be more than one project for the area as established by the tax increment financing plans. The determination for projects will be made by the Housing and Redevelopment Authority with the approval of the Fridley City Gouncil after careful consideration by the Planning Comnission. The area boundary for the Redevelopment District is generally des- cribed as tfiat property located West of lfniversity Avenue N.E. from County Road 132 on the North of 79th Avenue N.E. on the 5outh with the western boundary fluctuating from Main Street to the railroad right-of- way. (the exact legal description is defined tater i� this document). The area as generally defined is suitably located for expansion of industrial-comnercial development with potential mixture of high-medium density housing and commercial development east of the Springbrook Nature Center property between Main Street and University Avenue N.E. This district rt►�y contain several projects for which the Housing and Redevelopment Authority may establish a development prospectus for the development or redevelopment of the proposed land area. The devel- opment prospectus shall be in compliance with the goals and objectives of this plan and such other requirements as may be established. The development prospectus may call for the Fridley Housing and Redevelopment Authority to acquire some or all of the property that :.is a part of this redevelopment plan. The determination of which properties are to be acquired will De based on sound development practices, financial feasi- bility, needs of the private developer, conformance with the goals and objectives of this plan and such other considerations deemed appropriate. For appticable projects in the district a tax increment plan wi11 be developed which wilt become a part of this document. The Housing and Redevelopment Authority and the City Councit shall make separate deter- mination on the use of other financial incentives that may assist private enterprise in the redeveiopment effort. These financial incentives may include the use of industrial revenue bonding, tax exempt revenue bonds or other Federal and State loans and grant r.anies. LAND AND REAL PROPERTY ACQU151TIOP� PLAN The Redevelopment Plan will require certain property ac- quisitions. The properties to be acquired will be determined on an individual basis with the development of the Tax Increment Plan during the redevelopment process. The redevelopment process will include res- ponding to private developer's proposal for land needs, making parcels available for development that are of sufficient size to accomodate 13 development, the elimination of substandard structures, the removal of blighting conditions, the removal of non-conforming land uses when such removal meets the gaals and objectives of the Onaway Redevelopment Plan, and such other factors that are necessary to accomplish the overall re- development goals. The Redevelopment Plan envisions and establishes a need for property acquisition. The plan does not establish specific properties, but rather allows for that determination by the Housing and Redevelopment Authority during the implementation of the plan. The determination of properties to be acquired shall be based on the following goals or such other goais that may be added to this plan. foals for Property Acquisition 1. Structures that are determined by the Fridiey Building Inspector to be structurally substandard: Land and/or structures that will permit land development and redevel- opment parcels to be large enough to accomodate new developments and corresponding parking requirements. 3. Land and/or structures that are needed to make necessary public im- provements in a proper relationship to the projected project. 4. Properties that are non-conforming land uses when such an acquisition will benefit the overall redeveTopment goals. This land and property acquisition plan is intended to give flexi- bility of decision making to the Housing and Redeveloprr�nt Authority and the City of Fridley during the implementation phase of the Onaway Redevel- opment Pro3ect. The land acquisition plan is intended to accomplish the overall goals of Redeveloping the North Area into a viable living/shop- ping/working area of the City. It is the intent of the Housing and Re- development Authority. that no property shall be acquired until the Tax Increment Plan has been approved. More detail on specific acquisition will be a part of the Tax Incre- ment Plan as required by Minnesota Statutes 1979 Suppiement Chapter 273. 74. -5- 1� LAND DI5P05ITI0�� AND REDEVELOPERS REQUIREMENTS The Redeveloper or Developer will be required by contractural agree- ment to observe the building requirements and zoning requirements of.ihe City of Fridley, and such other requirements as may be established by the City Council. Land disposition parcels shall be matle available under separate cover as they are determined by the Housing and Redevelopment Authority. The contract and tne disposition documents will spell out in detail provisions, standards, and such other criteria for achieving the objec- tives and requirements set forth in the Redevelopment Plan or otfier documents that are made a part of this plan. The Fridley Housing and Redevelopment Authority and the Fridley City Council wi11 select developers or redevelopers on the basis of their proposals, a determina- tiom of their ability to carry out such proposals, and their conformance to the Redevelopment Plan. All developers or redevelopers sha11 supply to the Fridley Housing and Redevelopment Authority and the City Council all information deemed necessary for sound decision making. Land dis- position parcels may be through fixed price offerin§s, or by other means, which in the determination of the Fridley Housing and Redevelopment Auttiority and the Fridley City Council wi11 best assure the attainment of the development and redevelopment goals, design objectives of this plan and its amendments. Developers or Redevelopers will not be permitted to defer the start of construction for a period longer that that required to prepare archi- tectural plans, obtain satisfactory financing, and to review and approve such plans by the Fridley Housing and Redevelopment Authority and the Fridley City Council in order to establish their conformance with the provisions of the plan, the disposition documents, and such other require- ments that may be estabiished. In addition, the following provisions witt be included in the agreement. That the developers or redevelopers will submit to the Authority and Council a p7an and schedule for the proposed development. That the purchase of the land is for the purpose of development or redevelopment and not for speculation. 3. Tnat the land will be built upon and improved in conformity with the goals and provisions of the redevelopment plan or its amend- ments. 4. That the building and improvements will be commenced and completed within a separately contracted Lime period and that said contract sfiall establish provisions for bonding and such other provisions that the Authority and City deem necessary. -6- � FINANCE PLAN Without excluding any other type of avaitable financing, it is the general intent that the Redevelopment Project shall be financed by the use of Tax Increment Financing, 6eneral Obligation Bonds, or Tax Increment Financing Revenue Bonds, which shall require subsequent City Council approval pursuant to MSAS 373.71. The Fridley Housing and Rede- vetopment Authority and the Fridley City Council shall ensure that ail aspects of this project are in compliance with state law. The actual sumnary of projected expenditures and revenues as of yet cannot Ee specifically determined. Projected expenditures cannot be spe- cifically determined until final determinations are made separately by project in the redevelopment program. When final decisions are made re- garding property acquisitions, the Housing and Redevelopment Authority and the City Council shall determine specific revenue and expenditure projections for that phase of the redevelopment program. These specific projects cannot be acequately determined at this point due to the follow- ing factors. A. New formulas to determine assessed vatue. B. Inflation/deflation of values. C. Actual cost af property acquisition. D. Legislati�re changes in the Uniform Relocation Act. E. Final determinations on relocation benefits. F. Final negatiated contract price for the sale of land developrient parcel5. 6. Undetermined financial incentives to developers. H. Others (this list is not exhaustive but rather illustrative). -7- RELOCATION PLAN 21 The Redevelopment Plan may require relocations of persons and businesses. The determination of which person(s) and business(s) to be relocated will be determined on an individual parcel by parcel basis as this plan is isnplemented. Prior to any relocation or property acqui- sition, the Fridley Housing and Redevelopment Authority and the Fridley City Council shall adopt rules and regulations that are in compliance with the Uniform Relocation Act, Chapter 117 of Minnesota Statutes and applicable federal rules and regulations. � PROCEDURE FOR AMENDMENT 22 �The Redevelopment Plan may be modified provided the modi- fication shall be adopted by the fridley Housing and Redevelopment Authority and the Fridley City Louncil under the provisions of the Municipal Housing and Redevelopment Act of the State of Minnesota, Section 462.525m Subdivision 6. -9- 2�� 53902/4000 - Now 02-30-24-23-OOD4 THE ELY 600 FT OF THE N 425 23 FT OF THE S 877.87 FT OF ALL THAT DART 0� THE 54J1/4 of NW1/4 OF SEC 2-30-24 ANOKA CNTY, f•4J LYING WLY OF STATE TRK H41Y NO 47 (SUBJ TO,AN EASE FOR UTIL PURP OVER THE W 20 FT Of THE ELY 115 FT OF SAID SW1/4 OF NW1/4 LYIN6 WLY OF & ADJACENT TO THE 41 LINE OF STATE TRK HlJY NO 47)(SUBJ TO EASE & RESTRILTIONS Of RECORD & 20 FT STREET EASE NOV 11, 1976) CpBA REALTY RESIDUE R-02-30-24-23-0011 THAT PART OF SW1/4 OF NW1/4 DESC AS fOL COM AT A PT ON WLY R/W LINE OF T H N47 5D PT BEIN6 877.87 fT N OF S LINE OF SW1/4 OF N171/4 TH WLY ALG THE S LINE Of 7HE PLAT OF CABA REALTY FIRST ADD 600 FT TO THE P 0 B TH SLY PRLL WITH THE IJLY R/IJ OF T H #47 425.23 fT TH WLY PRLL W1TH THE S LINE OF SD 1/4 1/4 TO W LINE THEREOF TH NLY ALG W LINE OF SD 1/4 1/4 4E5.23 FT TO S LINE OF SD PLAT OF CABA REALTY FIRSS aDD TH'ELY ALG SD S LINE TO P 0 B EX RD SUBJ TO EASE OF REC Caba Realty First Addition - Lot 1, Block 1, and Lots 1- 5, Block 2 University Industrial Park - Lot 1, Block 1; Lot 1, Block 2; Lots 1- 10, Block 3, and Lots 1- 8, Block 4 UNIVERSI7Y INDUSTRIAL PARK RESIDUE R-02-3Q-24-32-0025 Tf1Afi PART OF NW1/4 OF SW1/4 LYG NLY & WLY OF THE W& P� LINES OF BLOCK ? OF PLAT7E0 INDUSTRIAL PARK EX RD SUBJ TO EASE OF REC 53902i5700 SOUTH 28? FT. OF WEST 460 FT. OF NW1;4 OF 51,11/4 OF SECTION 2-30-24. SUBJ TO PUB EASE AND RESTRICTIONS OF RECORD. 53903/1800 - Now 03-30-24-14-0001 THAT PART OF N1/2 OF SE1/4 6F NE1l4 LYG S OF N 233 fT THEREOf AND THAT PART OF S1/2 OF SE1/4 OF NE1/4 LYG W OF E 600.2 FT THEREOf EX RD SUBJ TO EASE OF REC 53903J1810 - Now 03-30-24-14-OD02 THE E 600.2 FT OF THE S1/2 OF SE1/4 OF NE1/4 OF SEC 3-30-24 ANOKA CNTY, MN (SUBJ T4 EASE L RESTRICTIONS OF RECORD IF ANY) 53903/1910 - Now 03-30-24-14-OD03 THE N 233.00 FT AS MEAS AT RT ANGLES FROM THE N LINE OF SE1/4 OF NE1/4 OF SEC 3-30-24 ACCORDING TO THE U S GOUT SURYEY THEREOF -17- 25 53903/7220 - Now 03-30-24-41-0002 SECTION 3-30-24 - E1/2 OF NE1/4 of SE1/4 OF SECTION 3-3-24, ANOKA COUNTY, MP� ERCEPT THE E 330' OF THE 5 264' OF THE NE1/4 OF THE SE1/4 OF SECTION 3-30-24 SUBJ TO EASE OF RECOP,D (EXCEPT: THE W 328' OF THE S 805` OF THE E1/2 OF THE NE1/4 OF SE1/4 SECTION 3-30-24 ANOKA COUNTY MPI SUBJ TO EASE AGREEMENT 4-12-74) (EXGEPT: THE S 805' OF THE E7l2 OF THE NE1(4 OF SE 1(4 OF SECTION 3-30-24 EXCEPT THE WEST 328' ACCORDING TO THE PLAT THEREOF ON FILE A�JD REC IN THE OFFICE OF THE REGISTER OF DEEDS WITHIN AND fOR SAID COUNTY. SUBJ. TO EASE AGREEMENTS 4-12-74) (EX THE S 805' OF THE E1/2 OF NE1/4 OF SEl/4 OF SECTION 3-30-24 EXCEPT THE W 328' ACCORDING TO THE PLAT THEREOF OW FILE AND REC IN THE OFFICE OF THE REGISTER Of DEEOS WITHIN ANO FOR SD COUNTY SUBJ TQ EASE AGREEhiENTS 4-12-74) 53903/1400 - Now 03-30-24-13-OOT3 - THE NLY 135 FT OF THAT PART OF SW1/4 OF NE1/4 LYG E Of BN RAILROAD R71�1 EX RD SUBJ TO EASE OF REC 53903/1400 HARRIS PARCEL - Now 03-30-24-13-0012 THAT PART OF SW1/4 OF NE1/4 LYG E OF BN RAILROAD R/W EX THE N 135 FT THEREOF EX RD SUBJ TO EASE OF REC -12- �/OG['! � � � � i 3390.i . a; ��f;� � 6 , �'=� '7"'--'—cswn wn � `_S � �� "- .�fr.-. ' �='i—�-�� i w �aa � ��{�` I �� . a I ;r•` �� s e�y.'1. . �`i;� 1 1 ;. ,�..,,, � , - � j . � � �,. . t � � � , i � S90 " ' ��• r..� !�` �': �..,�'• I ,�`d.»:.'�... 539C2�3too ' � s , , . ; I .,... ... i � i r � ` i� ,�, ,� 7. ! � j' � 53902 3300 �I ( � . ' J,' r-•�.1 I ;,';j-..yr ..JI .�r�.�• .�. � . i. Y�r .3 �'=s=- �I I � ��r j �� C* ,I Mt�fll . 1 , • � I �� . � I�� —_ t (.�� r \" 539oZ 3000 ' � _� I � . . .. '� .. � / 539o13+io0 �. " i ' _ _ _ '_ ��m■ � � �� ss4o�voo i' \ ` . � �. �� Q . , � .. , �� .�. r dIEA t �f c„ /7(/hl �� — ' � �_.af..� � I ; ,.� i � � � f '.`. " � � I "'": " � " � �. ^q.. : ,^��, . f l � � : 1 � : " -� � I ..ti .:�. ; � ev� m �il�i�y �� —._'_— _" _ _ .-� � . R �q � . • � _._ �__ 1_�___� "� _�'-J�' i �SIlC�vC.-ilE-� ____ � �3�i I�� C'�', • Y•� r ' ��., `i' � I.t �, � , .'�ffs -_,,,c .. I I .K.R . , .`� � ' ;, ,f�RST _ . . ; � 539os i800 •' _ ' � � � " 534G2./ 5390Rly000 , � � , � -- _,,,-...�--------- � CABA�R�+�f —�- I � h...� P � - -- - - t1 �bt7i .�... �, t � i i's'_ T i �� I I '� � i � 539o3� 8b � 599a2 f 7 0 0 * I� � i � ' i I awp� !� '�.' l' N � . ,r�_=w .l / -�--'"_'__�___`_ �w _ � •` _"" "' 3F �3 �II�'�'— � • . ' ' S3903/ � 59902/ •, � ,��I ' � � � � � i � ,7Z20 � VNtvEQSITf �. „ I r I..� , ' ^— zNUns. �:�� I T :; , :,� � ' ,i I � wnao �' . � � i ' � '�� p�tK + : twt `r - ' � J RES�p7E i , ., .1 , �y i �•^ . i ' `�'►�� 'Si '� T'� ,.. `� ' L_ ^_"_G__ ^___-� � � � ! $LK 3 �� I ' �' � i i e �.i' i � �;'1� ,�~ • �� i i 1� i BLR1� IL .. ♦ � ; ; I ; ; ; �%NIVERS��"f uSl'R1AL � I ' ��' � i i ' � � � �AR�[� ? I Iur � �osrulE I I I �l - '; �y iV �C �. I y�. � �� i I � :F �! /II 1 ��>e��/I�vs 'j � �^M'y, � � i 1 1 `�r�L�� ,��. I 2 , ; „ - � , ,� ;� , � i • _---- �- _----- -_�==�3,� �1.� ��;��_ �:� �1?lJ• Y'I j r•N �/ I 1, 1�� . A Il�. i. A. I d � , \ � � l: � / . . ! � / ' I / / \ / � ; . _4 i b / 1 � : ,. E , :+_ = - : ., . ., =. ' T ,�_ . � -. ,.. � ..- , � �" ' Stp-T..,�- � I � � •....._..' s �'w ::' " �• � `• .� • N d � . � ,p, •�� .j� . i � n u � �pr . _• r ♦ ^ r j t��1� I ► t R• / � P1at Parcel Lot Block UyIV. INDUS. PARK 1 4 2 4 3 4 4 4 5 4 6 4 7 4 8 4 UNTV. INDUS. PARK RESIDUE - - 53903 140U - - " 1800 - - 1810 - - 1910 - - 7220 - - 1981 Market Value 20,400 19.600 19.400 19,100 32,100 32.100 18.900 lFi, 500 109,300 231,3U0 359,500 108.400 1,346.000 87,300 1981 Assessed Value B,16o 7,B40 7 .760 7 ,64U 12,840 12,840 7 , 560 7,400 43.720 92,520 143,800 43,360 577,280 34,920 Total 5,216,000 2,149,425 27 Use v v v v v v v v v v v v v I P1at 53902 w r N «� w M Parcel Lot B1ock 300U - - 3200 - - ssoo - _ 3400 - - 3700 - - 4000 - - 5700 - - CABA REALTY lrst ADDITION M N M M ' 1 1 2 2 2 3 2 4 2 5 2 CABA REALTY RESIDUE - - UNIV. INDUS. PARK 1 1 " 1 2 " 1 3 " 2 3 " 3 3 " 4 3 " 5 3 • 6 3 " 7 3 " 8 3 " 9 3 • 10 3 19II1 Market Va1ue 410.900 259.700 159.900 179.900 262.100 140.300 42,9D0 79.400 442,700 49.1OD 35.200 26.500 26.100 102.200 57.800 252.700 28,400 21.000 21.000 20.900 20,900 26,900 29,800 33,600 33.600 30,600 1981 Assessed Value 164.36D 103.880 63.9b0 71,960 111.203 55.120 77.150 31.760 188.861 19,640 14,080 10,600 10,440 40,800 23.120 107.161 11,360 8 ,400 8,400 8,360 6,360 10.760 11,920 13.440 13.440 12.240 zs . Use v v Y v v v V V c v v v v v v c v v v v v v v v 4 v 30 TAX INCREMENT PLAN NORTH AREA REDEVELOPMENT DISTRICT Description of District The 7ax Increment District is legally described in a separate section of this plan, but is generally located along University Avenue N.E. between 79th Avenue N.E. and 85th Avenue N.E. District Eligibility A. Authority Under Minnesota State Law, Minnesota 5tatutes, 1979 Supplement, Chapter 273.71, local Housing and Redevelopment Authorities may utilize tax increment financing to undertake Redevelopment, Housing or Economic Development Projects as created by an approved Redevel- ment Plan under M.S.A. R62.521. B. Eligibility The Tax Increment District is eligible as a tax increment financinq district for a Redevelopment project as part of the pnaway Redevelopment Plan which is an approved Redevelopment Area, under Chapter 462 of Laws of Minnesota. The Redevelopment Plan was approved by the Housing and Redevelopment Authority on and the Fridley City Council on Statement of Ob�'ectives The Nousing and Redevelopment Authority make the following findings: 1. That the district is established for the purpose of developing a Redevelopment Project; 2. That said project, in the opinion of the Authority, would not occur solely through private investment within the reasonably forseeable future; 3. That the tax increment plan conforms to the general plan for redevelopment of the municipality as a whole; 4. That the tax increment financing plan will afford maximum op- portunity, consistent with sound needs of the municipality, for the development of the municipality as a whole; 5. That the Housing and Redevelopment Authority elects the method of tax increment computation set forth in Minnesota Statute, Section 273.76, subdivision 3, Clause (b). -1- N � �� . _ � _ � � � � � a._ .`.. --,—i :� : ..� \ �suu `p �lN r� � � �� ! L2 N � ... w.rf— WOit� CP 11[I��M CQ M�EYOI!{ . OIF�IO LYF N�M �J:��Jn! Je_�L� r,�. �, 'IL� I�n u . .o.�=� � 31 � � �� a ��.�; � as_ ,� � �,.c'Y, Ci�'� � �. _��[7(_s_� ..��. n i'� � coww. 1. �wns STREET MA.P-CITY OF FRIDLEY 0 $�39 6,666 f --�� —��:� �/OR� � � � 339Gt'J �.s�. • � a.. . d-�: a•` .� �� , �� , �� .� �� wrawn uwn � � - �'f�.-- � . . 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' i 1 i f I.. .. .I � 1�I 1 �1 .. ; �.�si�ro� i - ; ; I � � � I'T�- �. r � i .!�� "��I � � _ � _ _�1 i "' \�'— O �`¢��__ �y I II ��S r . r1 � � "___""' � ' i� � � � t1_ �� — • -'wJl'.�.__ ��— ' ' • '...' +�.... '�;m _s-i�ia+�- �T `�.r'� �il •" _ ..�- = �, n � � ' �� - t � -I � � r n - . _e , � �: � � �- • : � � ; � - � : I/ 1��. {' 4 � • � �\ ; , lM / j tl . —I � M ! . I / '/ !� • 4 • • i: :�'.:-f 5 ' � . -, .. - . �1 `ES . / YI _N _ / Ii .� I. L _I �w � ` 1 I • . . �.. � � : � Eg,A,.x..—�•� ' •...,: �MEAD ` �, � RUK `Y� r _;: : • .. -,. . ` I 3 � � l� �H �t t �nA f � I / '�i� . _.. . -. . . _.. : . _. 33 District Development Program The development program for the district calts for the staging of said district to accomplish the stated objectives. It is the intent of the fridley Nousing and Redevelopment Authority to provide for the opportunity for private investment to develop property which is econonicatty unproductive to the com- munity and has the potential for contributing to the communitity's public health, safety and welfare. The determination for this praject is based on the.Yorth Area Redevelopment Plan which was approved by the Fridley Housing and Redevetopment Authority on and the Fridley City Council on This tax increment plan is established for the purpose of developing a redevelopment tax increment financing district as defined in Minnesota Statutes 273.73, Subdivision 10, paragraph (2) and (3) in order to undertake redevelopment project activities as defined in Minnesota Statutes 462.421, Subdivision 13. The property included in this tax increment district sha11 include a11 property described as follows: PHASE I 53902/3000 - Naw 02-30-24-22-0001 COM AT A PT ON W LINE OF SD NW1/4 533.25 FT + or - S OF NW COR THEREOF (SD PT BEING THE 1NTER OF W LINE OF SD NW1/4 S 7HE WLY EXT OF THE S LINE OF THE PLA7 OF COOPER-DAHLBERG ADDILION) 7H ELY & PRLL TO THE N LINE OF SQ-NW1/4 TO A PT BEIN6 600 FEET W OF W R/W LINE OF SD T H k47 TH SLY PRLL/lJ SD WLY R/� OF 5D T H#47 TO A PT BEING 450 fEET N OF S LINE OF SD NW1/4 OF NW1/4 TH ELY B PRLL 70 N LINE THEREOf 600 FT TO WLY R/W LINE OF SD T H�47 TH SLY ALG SD R/b! LINE TO THE SW COR THEREOF TH WLY ALG 5 LINE OF SD NiJI/4 OF NiJI/4 TO THE SW COR THEREOF TH NLY ALG W L1NE OF SD 1/4 1/4 TO P 0 B EX RD SUEJ 70 EASE OF REC PHASE II 539D2/320D - Now 02-30-24-22-OD02 THAT PART OF THE N 32.12 ACRES Of Nldl/n LYG W OF THE WLY R/!J LIPJE OF T H=47 EX RD SUBJ TO EASE OF REC 53902/3300 - Now 02-30-24-22-OOD3 THE E 600.00 FT AS MEAS AT RIGH7 ANGLES TO THE W RT-OF-WAY OF STATE TRK H!dY NO �7 OF THE FOL DESC TRACT-ALL OF THE N!J1/4 OF NW1/4 OF SEC 2-30-24 ANOKA CNTY, NW LYING 'ALY Of STATE TRK HWY NO 47 (EX THE S 1050.00 FT THEREOF) &(EX THAT PART LY1NG N OF THE 5 LINE OF THE N 32.12 ALRES Of SAID NIJI/4 OF SAID SEC 2)(SUBJ TO EASE OF RECORD TO C1TY OF fRIDLEY FOR STREETS SIDEWALKS 8 UTIL)(SUBJ TO STATE NIGHIJAY NO 47 ACQUISITION)(SUBJ TO 50 FT WIDE EASE FOR SERVICE RDAD PURP & EASE Of RECORD) 53902/3400 - Now 02-30-24-22-0004 34 THE E 600.00 FT OF THE N b�0.00 fT Of THE S 1050.00 fT. OF ALL THAT PART OF THE NW1/4 OF NW1/4 OF SEC 2-30-24 AYOKA C"lTY, MN LYING bJLY OF STATE TRK Hk'Y 47 STATE HWY£N0�47fACQUI5ITI0Y)(SUIIJ�FTORA 50YFT�lJIDEREASE fORESERVILE OAD>PURPJ&TO EASE OF RELORO) PHASE III 53902/3700 - No�+ 02-30-24-23-0003 THE S 452.64 FT Of ALL TH PT OF THE SF11/4 OF NW1/4 OF SEL 2-30-24 ANOKA CP�TY, MN LYING FJLY OF ST TRUNK HNY No 47 53902/4D00 - Now 02-30-24-23-OOD4 THE ELY 600 FT Of THE N 425 23 FT OF THE S 877.87 FT OF ALL THAT PART OF THE 5idJ1/4 of P�WI/4 OF SEC 2-30-24 ANOKA CNTY, MtV LYIN6 WLY Of STATE TRKHl�IY NO 47 (SUBJ TO Av EASE FOR UTIL PURP OVER THE W 20 FT OF THE ELY 115 FT OF SAID SW1/4 OF NW1/4 LYI��G WLY Of & ADJACEP�T TO THE N LINE OF STATE TRK H;dY NO 47)(SUBJ TO EASE 8 RESTRILTIONS OF RECORD & 20 FT STREET EASE NOV 11. 1976) CABA REALTY RESIDUE R-02-30-24-23-0011 THAT PART OF SW1/4 OF NW1/4 DESC A5 FOL COM AT A PT ON WLY R/W LINE Of T H�47 SD PT BEIN6 877.87 FT N OF S LINE Of SW1/4 OF Nl•J1/4 TH WLY ALG THE S LINE Of THE PLA7 OF CABA REALTY FIRST ADD 600 FT TO THE P 0 B TH 5LY PRLL W1TH THE WLY P./1J OF T H t!47 425.23 FT TH WLY PRLL WITH THE 5 IINE OF SQ 1/4 1/4 TQ W LINE THEREOf 7H NLY ALG W LINE OF SD 1/4 1/4 425.23 FT TO S LINE OF SD PLAT OF CABA REIILTY FIRST ADD TH'ELY ALG SD S LINE TO P 0 B E7( RD SUBJ TO EASE OF REC Caba Realty First Addition - Lot 1, Block 1, and Lots 1- 5, Block 2 PHASE IV University Industrial Park - Lot 1, Block 1; Lot 1, Block 2; Lots 1- 10, Block 3, and lots 1- 8, Block 4 UNIVERSITY INDUSTRIAL PARK RESIDUE R-02-30-24-32-OD25 Tl1Afi PART OF NW1/4 OF SW1/4 LYG NLY & WLY Of THE W&!J LINES OF BLOLK 4 OF PLATTEO INDUSTRIAL PARK EX RD SUBJ TO EASE OF REC 53902/5700 SOUTH 2B4 FT. OF WEST 460 fT. OF NW1;4 OF SWl/4 �F SECTION 2-30-24. SUBJ TQ PUB EASE AND RESTRICTIONS OF RECORD. -3- 35 53903/7220 - Now D3-30-24-41-OOD2 SELTION 3-30-24 - E1/2 OF NE1/4 Of SE1/4 OF SECTION 3-3-24, ANDKA COUNTY, MPJ EXCEPT THE E 330' OF THE S 264' OF THE NEi/4 OF THE SE1/4 OF SECTION 3-30-24 SUBJ TO fASE Of RECOP.D (EXCEPT: THE W 328' Of THE S 805' OF THE E1/2 OF THE NE1/4 OF 5E1/4 SECTION 3-30-24 ANOKA COUNTY MM SUBJ TO EASE AGREEMENT 4-12-74) (EXCEPT: THE S 805' OF THE E1/2 OF THE NE1/4 OF SE 1/4 OF SECTION 3-30-24 EXCEPT THE WEST 328' ACCORDIN6 TO THE PLAT THEREOF ON FILE AtJD REC IN THE OFFICE OF THE REGISTER OF DEEDS WI7HIN AND FOR SAID COUNTY. SUB�. TO EASE AGREEMENTS 4-12-74} (EX THE S 805' OF THE E1/2 OF NE1/4 OF 5E1/4 Of SECT]ON 3-30-24 EXCEPT THE W 328' ACCORDIN6 TO THE PLAT THEREOF OW FILE AND REC IN THE OFFICE OF THE REGISTER OF DEEDS 611THIN AND FDR SD COUNTY SUBJ TO EASE AGREfh1ENT5 4-12-14) PHASE Y 53903/1800 - Now 03-30-24-14-0001 St/2 OFRSE//4NOFZNE7/4ELYG WFOFEE/600Y2 FT�THEREOF EX RDESUBJ TODEASETOFARECOF 53903/181D - Now 03-30-24-14-0002 THE f 600.2 FT OF THE 51/2 OF SE1/4 OF NE1/4 OF SEC 3-30-24 ANDKA CNTY, MN (SUBJ TO EASE L RESiRICTI0N5 Of RECORD 1F ANY) 53903/1910 - Now 03-30-24-14-0003 THE N 233.00 FT AS MEAS AT RT ANGLES FROM THE N LINE OF SE1/4 OF NE1/4 OF SEC 3-30-24 ALCORDING TO THE U S GOYT SL'RVEY TNEREOF 53903Ji400 - Now 03-30-24-13-OOt3 THE NLY 135 FT OF THAT PART OF SW1/4 OF NE1/4 LYG f OF BN RAILROAO R7ld EX RD SUBJ TO EASE OF REC 53903/1400 HARRIS PARCEL - Now 03-30-24-13-0012 THA7 PART OF SW1/4 OF NE1/4 LYG E OF BN RD SUBJ 70 EASE OF REC -4- RAILROAD R/W EX THE N 135 F7 THEREDF EX 36 Financing Plan by Phase Phase I Financing Plan It is the intznt of the Housing and Redevelopment Authority to assist the development of a multiple family Housing Project b.y providing assistance in site preparation and drainage district imoroveeient which have hindered the private investors from makin9 use of the remaining proQerty in this phase. There is no property acquisition proposed by the Housing Authority in this phase. -Estimated Cost of Phase I Property Preparation Assistance . . . . . . . . . . . . . . . $ 985,000.00 Public Improvement Street/Utility . . . . . . . . . . . . . . . . . . . . . Drainage District Improvement . . . . . . . . . . . . . . $ Administration . . . . . . . . . . . . . . . . . . . . . . $ 1DXOverhead . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000.00 54,250.00 113,925.00 Estimated Cost of Phase I.....$1,253,175.00 Project Bonded Indebtedness . . . . . . . . . . . . . . . . . $1,253,175.00 Capitalized Interest Costs . . . . . . . . . . . . . . . . . y 600,000.00 Total Bonded Indebtedness. . . . . $1,853,175.00 Most Recent Assessed Yalue/Phase I . . . . . . . . . . . . . . $ 164,360.�0 Estimated Captured Assessed Value of Phase I at Project Compl2tion . . . . . . . . . . . . . . . . . . . $3,908,853.00 Phase II, III, IV and IV Financing Plan Without excluding any other type of available financing, it it the general intent that Phase II, III, IV and Y shall be financed by use of tax increment funds from the entire district. The actual sumnary of specified expenditures for Phases II through V as yet cannot be specifically determined until final decisions are made by the Housing and Redevelopment Authority and the City Council regarding the specific development for each phase. When final determination is made on property acquisition, the Housing and Redelopment Autho'rity shall determine specific revenue and expenditure projections for that phase of the tax increment p4an and process it as a modification to the plan. The following is the general development plan for each of Phases II through V with an indication of the most recent assessed valuation. Included is also a very general anticipated captured assessed value at the completion of all phases in the district. -5- Phase II - IV It is the intent.of the Housing and Redevelopment Authority to promote industrial/commercial developnent in Phases I1. III. IV. and V. which will be consistent to existing development in the aeneral area and the overall City Comprehensive Plan. '�. Public improvements to these phases will include soil correction work, drpinage district improvement costs, intersection and street improvement to adequately handle traffic general. utility and public right-of-way im- provements. The deveiopment of these phases will promote improved business climate and job opportunities which wilt promote general economic stability Within the City. The most recent total assessed value for these phases and the estimated captured assed value of the district at completion is as follows: Phase II - Estimated Assessed Yalue ...... i 239,800.00 Yalue at completion . . . . . . . . . S 2,728,924.00 Phase III - Estirtated Assessed Ya1ue ...... S 483,504.00 Va1ue at completion . . . . . . . . . S 5,502,275.00 Phase IY - Estimated Assessed Vatue ...... 5 404,801.00 Yalue at completion . . . . . . . . . $ 4,606,635.00 Phase Y - Estimated Assessed Yalue . . . . . . $ 856,960.00 Ya1ue at completion . . . . . . . . . $ 9,752,204.00 TOTAL�DISTRICT 37 With the combination of the five phases. the most recent total assessed value for the Tax Increment District is �2,149,425.00 If all phases of the district develop as anticipated in the above section, the total anticipated assessed value of the district wilt increase to b�6,498,891.00 or an increase of $24,349,466.00 over t6e pre�ent assessed value. The district shall be established for a period of not more than 25 years as allowed under Section 273.75, Subdivision 1, under the laws of the State of Minnesota. It is the intent of the Housing and .Redevet�pment Auth�rity to evaluate the cash flow annually to deternine the payback on bonds based on the total district as is allowed under Section 275.75, Subdivision 2, of the laws of the State of Minnesota. � Plan Impact on Taxing Jurisdiction Impact, School District 11 Tota1 Assessed Value District 11 . . . . . . . . . . . . . . . . � Tota1 Assessed Value of Tax Increment �`" Located in District 11 . . . : . . . . . . . . . . . . . . Percent of Total Assessed Value . . . . . . . . . . . . . . . . Estimated Assessed Value Loss to District (20 Years) due to certification of original Assessed Va1ue ..... Estimated Gain to District at Completion . . . . . . . . . . . . Im�act, School District lb ' Tota1 Assessed Yalue District 16 . . . . . . . . . . . . . . . . Total Assessed Value of Tax Increment Located in District 16 . . . . . . . . . . . . . . . . . . Percent of Total Assessed Yalue . . . . . . . . . . . . . . . . Estimated Assessed Yalue Loss to District (20 Years) due to certification of original Assessed Value ..... Estimated Gain to District at Completion . . . . . . . . . . . . Impact, Ci� of Fridley . Total Assessed Value City . . . . . . . . . . . . . . . . . . . Total Assessed Ya1ue of Taz Increment District . . . . . . . . . Percent of Total Assessed Value . . . . . . . . . . . . . . . . Estimated Assessed Va1ue Loss to City (20 Years) due to certification pf original Assessed Value ..... Estimated Assessed Value Gain to City at Completion ...... I.r�pact, Anoka County Total Assessed Value County . . . . . . . . . . . . . . . . . . Total Assessed Value of Tax Increment District ........ Per Cent of•Total Assessed Value . . . . . . . . . . . . . . . Estimated Assessed Value Loisto County (20 Yearsj due to certification of original Assessed Value ..... Estimated Assessed Value Gain to County at Completion ..... S� 3^ � $495,986,689.00 649,721.00 0.13% 1,434,021.00 4,366,778.00 98,027,506.00 :�: �� 1,893,297.00 14,112,814.00 176,260,691.00 1,507,529.00 0.86� 3,327,319.00 13,479,592.00 842,560,638.00 1,507,529.00 0.18� 3,327,319.00 18,479,592.00 39 Modification of the Plan The Tax Increment Plan for The Redevelopr.ient Area may be modifieG provi'ded the modification shall be adopted b.v the fridley Housing and Redevelopment Authority and the Fridley City Council under the provision of Section 203.74. Subdivision 4, of the laws of the State of Minnesota. � CITY OF FRIDLEY HOUSIN6 & REDEVELOPMENT AUTHORITY MEETING OCTOBER 22, 1981 CALL TO ORDER: Chairperson Commers called the October 22, 1981, Housing & Redevelopment Authority meeting to order at 7:33 p.m. ROLL CALL: Members Present: Larry Corrmiers, Russell Houck, Elmars Prieditis, Carolyn Svensdsan, Duane Prairie Members Absent: None Others Present: Jerrold Boardman, City Planner Jerry Remmen, Contract Development Corporation Jim Vasser, Vasser & Assoc., Inc. Ralph Bullick, 9102 Van Buren St. N.E. - Bullick Homes, Inc. Allen E. Singer, 378 - 64th Ave. N.E. Ron Schoneman, 246 Mississippi St. N.E. Burt Savitt, 6440 University Ave. N.E. - Savitt Bros., Inc. Hong Kong Kitchen, 242 Mississippi St. N.E. Missy Mehnec, 244 Mississippi St. N.E. Shirley Briscoe, 244 Mississippi St. N.E. David Nelson,6440 University Ave. N.E. - Northern Lights John Carnahan,6440 University Ave. N.E. - Northern Lights Mark Johnson, 6460 University Ave. N.E. - M.D.J. Investments Sid Inman, Director of Central Services APPROVAL Of SEPTEMBER 10, 1981, HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION BY MR. HOUCK� SECONDED BY MR, PRAIRIE� TO APPROVE THE SEPTEMBER 10, 1981, XOUSING & REDEVELOPMENT AUTHORITY MINUTES RS WRITTEN. UPON A VOICE VOTE� ALL VOTING AYE� CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. LARGE FAMILY HOUSING PROGRAM - LETTER FROM RALPH BULLICK DATED 9/10/81 Mr. Boardman stated that he would like Mr. Bullick to explain his letter. He stated the memo explains the breakdown of funding they have left in the large family program. Mr. Bullick stated that in the past year or so, he has built a few homes in Fridley under the 235 program, which is an FHA subsidized program. Not only do these homes have to meet the City's requirements, but they also have to meet the FHA's requirements. Under that program, when they submit a purchase HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 22 1981 PAGE 2 agreement, there cannot be any open end-type of costs. The problem he had with the Bergstrom's lot (5760 - 3rd St. N.E.) was that it was ]ow and had some soil problems and was heavily wooded where the house had to be placed. The Bergstrom's purchased the lot through the City of Fridley, and he built the home. In order to build that home, he had to remove quite a few trees and go back in with a lot of fill sand and had to actually go with two extra courses of block. The cost was quite excessive and went $2,280 over and above what the normal cost would have been. Mr. Bullick stated that at the closing, he explained this situation to the Bergstrom's and did collect 1/3 of the extra cost from them. He then contacted Mary Cayan at the City and explained the situation to her. He explained he would be willing to pay 1/3 of the cost if he could get some help from the HRA for the final 1/3. Ms. Cayan had told him to bring this matter to the HRA and that is why he is at the meeting. He stated he had enclosed with his letter the billings he had for the excess. He stated he would like the HRA to reimburse him for 1/3 of $2,230, which is $760. Mr. Boardman stated he would recommend that the HRA reimburse Mr. Bullick the $760. He stated Mr. Bullick has done exceptional work for the City. The City knew there were going to be problems with this lot, but they did not know the extent of those problems. MOTION BY M3. SVENDSEN, SECON➢ED BY .�2. HOUCK, TO REIMBURSE $760 T0�1�Il2. .RALPH BULLICK WITH RESPECT TO THE ADDITIONAL�CHARGES FOR THE DEVEZAPMENT OF TNE LOT AT 5760 - 6TH ST. N.E. UPON A VOICE VOTfi� ALL VOTING AYE� CHRIRPERSON COMMERS DECLARED THE MOTION CRRRIED UNRNIMOUSLY. Mr. Commers thanked Mr. Bullick for coming. He stated the HRA really does appreciate the work he has done in the large family program. 2. CENTER CITY PROJECT: A. UPdate on Center Plaza Development - Phase III (Letter C-81-65) Mr. Remmen stated that over the last several months, he has always submitted a written progress report. However, he stated that so much has happened in the last two days that he will give an oral report and will submit a written report to the HRA later. He stated they had a meeting that afternoon with Mr. Boardman and the City Attorney regarding the development agreement. Mr. Remmen stated that, as the HRA was aware, the key to a center is a major food market. When they started the center approximately one year ago, they were looking at Red Owl. Red Owl was then bought out by Wickes and all negotiations ceased, They then approached Super Valu and were in negotiations with Super Valu for 3-4 months and were very close to a development lease. Then Mr. Hauser bought out the Penny's HOUSING & REDEVELOPMENT AUTHORITY MEETING OCTOBER 22 1981 PAGE 3 Store. At that time, Super Valu felt this was Mrx Hauser's territory and it was up to Mr. Hauser as to whether he wanted a new store in the center. Since July they have been negotiating with Mr. Hauser, and as of yesterday, they did come to a verbal comnitment. They have worked out all the details of the lease except for the final price. As of yesterday, they came up with a number that Mr. Hauser is willing to proceed with; however, this number is $1/sq, ft. less than the#r projections were, This has a considerable influence on the economics of the center. Mr. Remnen stated that in the meeting that afternoon with Mr. Boardman and other staff inembers, they discussed the possibility of the HRA going along with the cost of subsidizing this difference in lease, which would be approximately $300,000. They discussed a reduction in the price of the land or the possibility of a land lease with the City at the City's general obligation rates which would be below what Mr. Remmen could borrow the money for. The reduction of $1/sq. ft. on the center would make a difference in cash flow of $25,000 a year on the center. Mr. Rertmen stated that what this is going to involve is the need for them to go back and redo all their numbers and present to Staff a written economic report/study of the center to see if the City is _willing to work on some subsidy. If this could occur, they could finalize the lease with Super Valu in the next 7-10 days. Mr. Remmen stated that regarding the financing, they have been working with Banco on this. They are coming into a very difficult market at this particular time. So many of the major institutions that have been buying centers have spent or allocated the funds they are going to spend for 1981. In conversations with Banco and some other mortgage brokers, indications are that there are institutions that are still willing to go ahead on this type of project. Most of them feel any type of commitment would probably come after the first of the year, rather than in November or December. In this afternoon's meeting, they discussed the fact that they would be looking for at least 90 days to complete the financing. They discussed some terms with Staff and certain requirements the City has asked for regarding deposits, down payments, or option money to continue the project. Mr. Remmen stated they do have other leases for the center. Our Own Hardware's lease is subject to Super Valu's lease, and it looks favorable with Snyder's. Mr. Vasser stated that the numbers Mr. Remmen presented were thrown together rather quickly and, as Mr. Remmen had suggested, it would take more time and expenditure to work out the numbers to really determine the economic effect of $1Jsq. ft. less on the rental income basis. That could be done, and in the meeting that afternoon, they had discussed the nature of doing this and rendering those numbers as a basis for the HRA to make a decision regarding any subsidy. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 22 1981 PAGE 4 Mr. Commers asked Mr. Vasser if he agreed with Mr. Remnen that they could have more definite numbers within the next 1-2 weeks. Mr. Uasser stated he felt 7-10 days was a reasonable period of time. B. Discussion - Development Agreement (Memo #81-70) Mr. Boardman stated the City Attorney has looked at the contract for re- development. The contract looks well written and fairly well in order, but is missing some figures, They will need time to 7ook at those figures. Staff feels they are not in a position to go forward at this time. There are one of two issues the HRA would have to take: (1) either continue this until the Nov. 12th meeting and require a contract at that time; or (2) pull the development away from these developers and start looking for other developers. Mr. Commers asked if the City Attorney was recommending the execution of this contract for private redevelopment as it is? Mr. Boardman stated Mr. Herrick is not. There needs to be modifications. Within the document, they need a purchase price on the land, and Mr. Remmen and Mr. Vasser are saying now that they need to renegotiate or re-evaluate the purchase price through some lease agreement, The HRA needs to have that calculated and figured out before they sign this document. Mr. Remmen stated he felt they could have those figures to the City by the following Friday, Oct. 30. That would give Staff one week to review it and the HRA one week to review it before the Nov. 12 th meeting. Mr. Bert Savitt, Savitt Brothers, Inc., stated they have been sitting in on these discussions from time to time, and the problem the business people have with the moving up of these dates all the time is that they never know where they are at. Something has to be resolved, because his business has to decide whether to pull out of the area in Fridley or quit the business. With this thing going on and on, the business people cannot go forward. They cannot enter into any promotions, they can't have a"going out of business" sale, because they have no idea what they are going to do. He believed it came to the point where the City owes it to the business people to make up its mind which way it is going to go. He stated he has had an investment in his store and this community for the last ten years, and the City owes it to him to make up its mind. Mr. Commers asked Mr. Remmen that if they were to go forward within the next 30 days, what were his projections as to the timing of the project regarding the removal of the businesses. When would they be in a position to start construction? HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 22 1981 PAGE 5 Mr. Remmen stated their original projections were for a construction date of around May 1982. It would now probably be about 60 days off that projection. Mr. Boardman stated that, at this time, if they sign this development agreement, this development agreement will not necessarily be signed at the time financing is available. That was one of the points discussed at the meeting that afternoon, Jerry Remmen would still be asking for 90 days to tie the financing together. That is why the City has to have time to think about the funding. With the comnitment of the development agreement, they would be looking at some earnest monies, and that has not•been determined at this time. What he fett Mr. Remmen was looking at was, once they get Super Valu signed and once they get this commitment signed by the HRA and by the developer, thev need 90 days to put the financing commitment_toqeiher. The �itv would not start acquisftion of any property until they have the financing commitment. ThBt means they would look at 180 days from the time they get a sub- stantial financing canmitment. What Mr. Remmen told them in the meeting today is that if the HRA signed the document, it would be signed based on condition of financing. The City would have to get some wordage into this docur�nt to tie that financing to a time and tie some earnest money into that funding. Mr. Savitt stated that then the presumption is that after the 90 days, if Mr. Remmen does not have the financing, then the project either has to be extended or the agreement dropped, which means they would be back to square one. He stated he thought the time limits were getting a little bit too long. He suggested that the City poll the store owners to see what the store owners intend to do when the day comes for them to move. Maybe something could be printed out and the alternatives should be spelled out. Relocation should be defined. He stated it could be very simple and may save some time down the road in determining what is going to happen. Mr. Commers stated he thought Mr. Savitt's suggestion was a good one. Mr. 8oardman stated a survey could be done. Mr. Commers stated that at this point, he felt they should limit any continuances to a review within the next 30 days to make sure some real progress is going to be made. It may be that within that time frame, they will have the numbers they need. Mr. Prairie and Mr. Houck agreed that 30 days should be the niaximum. Mr. Boardman stated they should have all the financing information and determinations made by Nov. 12 with a final decision on the action to be made at a special meeting on Nov. 19. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 22, 1981 PAGE 6 MOTION BY .�2.NOUCK, SECONDED BY MR, PRIEDIT25, THAT THE FINANCIAL DATA WITN REGARD TO THE FEASIBILITY OF GOING FURTHER ON THE CENTER PLAZA DEVEIAPMENT(PAASE III) BE AVRILABLE AT THE HRA'S REGULAR MEETING ON NOV. I2� 198.I� RND THAT THE HRR`S DECISION ON THIS PROJECT BE EXTENDED 30 DAYS TO R SPfiCIRL MEETING ON NOV. I9� 1981. UPON R VOICE VOTE, ALL VOTING RYE, CHAIRPERSON COMMERS DECLARED TAE MOTION CARRIED UNANIMOUSLY. Mr. Commers thanked Mr. Remmen and Mr. Vasser for coming. Mr. Prairie stated he was concerned about whether any of the business peopie have put any money into the deveTopment. Mr. Boardman stated that to his knowledge, the business people have not put up any money. He knew that Ron's Barber Shop has signed a lease agreement for the new center. He was sure that his deposit was based on the center being built. Mr. Commers stated the question was whether that deposit was in escrow. He asked Mr. Boardman to write a letter to Mr. Remmen regarding how Mr. Remmen is handling the leases and what he is doing with deposits. C. Discussion Regarding Right of Development on Phases I, II, and IV r.,___ uo, ,� � MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO EXTEND 2HE DETERNINRTION ON PHASES I� II, AND IV UNTIL THE NEXT MEETING, TO COINCIDE WITH THE EXTENSIONS.SET FOR THE CENTER PLAZA DEVELOPMENT. UPON A VOICE VOTE� ALL VOTFNG AYE, CHAIRPERSON COMMERS DECLRRED THE MOTION CARRIED UlVANSMOUSLY. D. Receive Letter from Allen E. Singer - 378 - 64th Ave. N.E. Mr. Allen stated his letter was quite self-explanatory. He stated it is very difficult in today's market to purchase a house with contingencies and that is exactly what he has until he knows whether or not the City is going to purchase his house. Mr. Boardman stated that Mr. Allen is located south of City Hall on the corner of 64th and 5th Ave. He stated he has had several dis- cussions with Mr. Singer, Mr. Singer is interested in selling his house, and he is looking for some statement from the HRA that they would make an offer on his house. Mr. Singer stated he needs something in writing. He is interested in selling the house. He had talked with Mr. Boardman regarding the HUD guidelines, and if he knew this house was going to be purchased and removed within a specific time frame, then there are a great deal of financing advantages and disadvantages of either waiting or not waiting out the time limits. It would be nice if he could have some time frame. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 22, 1981 PAGE 7 Mr. Boardman stated it is hard to estimate a time limit. This is in Phase II. If they could get an office proposal to put in a project, they could go with that phase next. But, so far, they have not gotten any indications from a devetoper that it is going to be in the near future. A lot of it depends on the financing. Mr. Singer stated he had heard Mr. Boardman state that, even though the time limit may be 3-4 years away, the City is interested in purchasing this property at the appraised market value. If that is the case, in order for him to go into another house, he needs a letter stating exactly that and when the funds would be available. Mr. Boardman stated the City could purchase the property and then rent the property out, It could be used as part of the large family program or a low to moderate income rental-type of facility. The City is renting the house purchased with the Christenson property. He did not have any prablem with that in the sense that they could probably rent it for 10-20% over what the taxes are on the property. It has always been his recommendation that if property becomes available, they can probably purchase that property at this time at a better value, especially if there is a willing seller. When there is a willing seller, they waive the right of relocation, which is $15,000 for single family. He would recommend they get an appraisal on the property and make an offer for purchase. MOTION BY MR. PRIEDITIS� SECONDED BY MR. PRATRIfi, TD AUTHORZZE TXE APPRRZSRL OF THE PROPERTY AT 378 - 64TH AVE. N.E. UPbN A VOICE VOTE, RLL POTINC AYE, CHRIRPERSON COMMERS DECLARED TXE MOTION CARRIED UNANIMOUSLY, 3. MOORE LAKE PROJECT: A. Phase I Update (Memo #81-80) Mr. Boardman stated that for the HRA's informatian, the City Council will be holding a public hearing on the industrial revenue bonds requested by Cheryl Nybo on Oct. 19. If the City Council approves these bonds, they will start processing development agreements with Ms. Nybo for the acquisition of the Hillwind property. The City has agreed to loan the HRA funds to purchase this property until a bond issue can be sold by the HRA. This will only be completed with the signing of development agreements. Mr. Correners declared Memo #81-80 received into the record. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 22, 1981 PAGE 8 B. Receive Letter from Richard S. Carlson, Briar Homes Mr. Commers declared Mr. Car7son's letter dated Oct. 2 received into the record. Mr. Boardman stated that Mr. Carlson is requesting that the City pur- chase his property. He owns a vacant lot, Lot 18, in the Moore Lake Redevelopment Area, which is Phase VI. He did not know if the City was in a position to purchase this property at this time, primarily because it is vacant property. The value of vacant property does not go up much. Mr. Boardman stated that if the HRA did purchase the property, they would have to borrow money from the City. He stated that if a single family house comes up for sale in this district, rather than going through condemnation, it may be to the City's benefit to purchase the house with no relocation costs. In their proposal for that district, there are about eight single family houses that woutd have to be purchased, In a discussion with the City Manager, the City Manager did indicate that, yes, the City Council would probably loan those funds to the HRA to purchase property. As far as this lot, he would recommend against purchasing it. Mr. Commers recommended that Mr. Boardman write a letter explaining to him that the HRA has no funds available at purchase and to get an indication from Mr. Carlson what ask for his property. Receive Letter from Mrs. James Me,�er to Mr, Carlson this time for price he would Mr. Co�ners declared Mrs. James Meyer's letter dated Oct. 22 received into the record. Mr. Boardman stated that Mr. & Mrs. Meyer are ptanning to sell their property at 6397 Centra7 Ave. N.E, as soon as possible. They want to give the City the first opportunity to purcfias�. Mr. Nri�ditis suggested that Mr. Boardman write a similar letter to Mr. & Mrs. Meyer as the one he will be writing to Mr. Carlson. The members of the Authority agreed with Mr. Prisditts' suggestion. Mr. Boardman stated that as he had stated earlier, if a single family house comes up for sa7e in the Moore Lake District, rather than go through condemnation, it may be to the City's benefit to purchase the house with no relocation costs. He felt the NRA should consider a purchase when they have a willing seller, especiaily with single family houses. HOUSIN6 & REDEVELOPMENT AUTHORITY MEETING, �CTOBER 22, 1981 PAGE 9 Mr. Cortmers stated the HRA should probably think about this and talk a]ittle bit more about what they want to do in these circumstances. 4. HRA BY-LAWS: �MOTION BY MS. SVENDSfiN� SECONDEA BY 1�2. HOUCK, TO CONTINUE THE HRR BY-LAWS UNTIL ANOTHER MEETING. . UPON A VOICE VOTE� ALL VOTING RYE, CHAIRPSRSON COMMER5 DECLARED THE MOTION CARRIED UNANLNOUSLY. (Mr. Prairie left the meeting at 9:25 p.m.) 5. FINANCIAL REPORT: A. Monthly Report Mr. Inman reviewed the montly report as of Sept. 30, 1981, with the HRA. He stated the HRA wi11 notice by the size of the report that the activity has increased. He felt this report was a fairly good reflec- tion of the activity the HRA has had. Ms. Svendsen stated she would like to see a tittle more detail under the classification, "Supplies", such as "consultants, legal expenses;' etc. Mr. Inman stated he could classify it any way the HRA wanted. Ms. Svendsen stated that, for example, if they pay out monies to people for doing appraisals, it would be nice to look and see what appraisals were made this year and have the total figure. Mr. Commers stated that maybe the HRA could have an annual balance sheet. Mr. Inman stated he would be giving them a balance sheet for the year ending 1980. Mr. Inman stated that as the HRA may have heard on the news, the State is now $680,000 under estimate. He has the requirement for four different finances--the City, the HRA, the Police Pension, and tfie Fire Pension. One of the things the State has decided to do,as they have with school districts, is to look at the City's fund balance. Their intent is to try and place some legai restrictions on fund balance at year end. The strategy for this from the City's viewpoint, is to force the City to spend that money to get it back into the system, into sales tax, and back to the State. They have asked him to give them a NOUSING & REDEVELOPMEN7 AllTHORITY MEETING, OCTOBFR 22, 1981 PAGE 10 cash flow projection for the City of FridTey, the NRA, and the Police Pension and Fire Pension. At this point, he has refused to do that. That has basically been the response of the other cities, and the League af Cities has advised them that is what the State is trying to do. Mr. Inman stated that is the stand he is going to take unless the HRA would like him to provide the State with those figures. The HRA members agreed with Mr. Inman's response to the State. Mr. Gommers stated that maybe the HRA should also have an analysis of all the properties the City owns in terms of cash flow. Maybe they need to start thinking about taking some of those bui]dings down so they can at least get rid of any maintenance problems. Mr. Inman and Mr. Boardman agreed. Mr. Commers thanked Mr. Inman for coming and reviewing these reports. B. Check Register MOTIpN BY MR. HOUCK� SECONDED BY MS. SVENDSEN� TO APPROVE TXE CHECK REGISTER DATSD OCT.�21� 1985, AS PRESENTED. UPON R VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLRRED THE h10TI0N CRRRIED UNANIMOUSLY. 6. ESTABLISNMENT OF ONAWAY DEVEIOPMENT DISTRICT (Memo #81-81): Mr. Boardman stated that the City Manager has requested him to put together a tax increment district in the northern area of the Cit.Y (near North Park). It will be cailed the �Vorth Area D�veloument District. He stated this is primarily undeveloped and there are large areas of open water, which gives them an indication of what the soil condition is, They have soil borings from a lot of the developers in the area. Some of the things that have been happening in that area have caused the City some cancern. So, at the City Manager's request, he is putting together a tax increment redevelop- ment plan and a tax increment plan. Mr. Boardman stated the City Manager has discussed this with the City Council and every indication Mr. Boardman has gotten to date from the City Manager is that the City Council would support a tax increment district in this area. Mr. Boardman stated that in the next couple of weeks, he will be finalizing the tax increment plan, bringing it to the HRA, and requesting authority from the HRA to establish the district. He thought they cah establish it on the same basis of the legislative test of 80%. They are doing some appraisals HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 22, 1981 PAGE 11 on the property to get an indication of values of land. With the soil borings, they will take an estimate of costs based on 40% lot coverage plus another 20-25% paved parking areas, etc., and get some estimates on what it would cost to remove the peat for development. He is getting appraisals primarily in the areas where they have soil borings. Mr. Boardman stated the timing is for somewhere near the end of Nov./early Dec. to get the district established. He thought they were looking at general industrial development in this district. Mr. Commers stated he felt the first thing Mr. Boardman should do is find out the history of these lots. He thought it was a very delicate thing about why people have been losing some of these properties for tax forfeiture, and the City needs to know how long the owners have had these properties. Mr. Boardman stated he would bring a proposal to the Nov. I2 meeting for the NRA to review. 7. OTHER BUSINESS: A. Purchase of Tax Farfeit Land Mr. Boardman stated the HRA members had a copy of a"Forfeited Lands - Forfeiture Record" for the purchase of Lots 7& 8, Block 12, in Spring Brook Park. This is the property the HRA had indicated they would agree to purchase. The price looks right, and this price was established by the County Board. He stated he would like the authority to ourchase this property. MOTION BY MR. NOUCK� SECONDED BY MS. SVENASfiN, TO GIVE THE EXECUTIVE DIRECTOR THE AUT90RITY TO NEGOTIATE A PURCHASE PRZCE ON LOTS 7& 8, BLOCK 12, SPRING BRDOK PABK, - UPON R VOICE VOTE� ALL VOTING AYE� CHAIRPERSON COMMERS DECLARED THE MOTZON CARRIED UNANIMOUSLY. B. Resolution HRA 10 - 1981 Mr. Boardman stated that last year, the State amended the Freedom of Information Act and made it a nightmare for cities, local agencies, HRA's, and any one dea7ing with public information. The HRA was supposed to designate a responsible authority by the end of September 1981. He stated he had not been aware of this and had just found out about it. He stated he needed to have the HRA appoint a responsible authority as required under the Freedom of Information Act. The responsible authority he was recommending is Nasim Qureshi, the HRA Director. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 22, 1981 PAGE 12 MOTION BY MS. SVENDSEN� SECONDED BY MR. HOUCK, TO RPPROVE � RESOLUTION HRA 10 - 1982� "RESOLUTION APPOINTING A RESPONSIBLE AUTHORITY AND ASSIGNSNC DUTIES". UPON A VOICE VOTE, ALL VOTING AYE� CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMWSLY. ADJOURNMENT: Chairperson declared the October 22, 1981, Housing & Redevelopment Authority meeting adjourned at 11:00 p.m. Res ectfully su mitted, Ly e Saba Recording Secretary i �' - =i�i� - i;-, i8i - ��, xr - -_ .� a ,�'. .,- , �' , . , . .. :: �-. �_ . _". � �� s gp� LL � x l�4+� �i� . ��:.i� -" °, ,. _ �i �e _`cr. 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