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04/18/2005 CONF MTG - 4572� � CffY OF FRIDLE1f CITY COUNCIL CONFERENCE MEETING April i8, ZOOs — 7:0o p.m. Fridley Municipal Center Conference Room A 1. Report from Consultant on Northstar Development Impacts. 2. Islands of Peace Project. 3. Bonding for Street Reconstruction Proj ect. 4. Rice Creek Watershed District. 5. Community Park Ball Fields Regrading. 6. Lawn Sprinkling Restrictions. � � ClT�Y OF FRIDLEY DATE: TO: FROM: SUBJECT AGENDA ITEM CITY COUNCIL CONFERENCE MEETING OF APRIL 18, 2005 April 13, 2005 William W. Burns, City Manager�� �� Scott J. Hickok, Community Development Director Paul Bolin, Assistant Executive HRA Director Joint Application to Metropolitan Council for Livable Communities Act Grant to Studv Potential Northstar Corridor Development INTRODUCTION As you may recall, in 2002 the City, entered into an agreement for joint study with Anoka County and the Cities of Anoka and Coon Rapids. This study would focus on potential Northstar Commuter development impacts and suggest development scenarios for the property adjacent to the station sites in each of three communities. The timing of the actual work for this study collided with the Fridley Housing Forums and consequently, we asked that the consultant study potential development and to make their recommendation (or present a series of options) to the City Council and�taff. Earlier this year, Bill Smith and Harold Skjobestad, of BIKO & Associates, presented their findings to staff and asked for input on options presented. From that meeting, BIKO has now completed their report and have now asked for permission to make a presentation to the City Council. ELEMENTS OF PROJECT This approach is somewhat unique in that typically communities apply as individual entities for funds for their individual projects. Also, independently, the County cannot seek Livable Communities Grant Funds. A city must serve as the lead agency and fiscal agent. The project in this situation was envisioned (by the County) to be a joint planning effort focusing on housing needs adjacent to the Northstar Commuter Rail Corridor. As with all grants, a local match was required. At that same time, the County had commissioned a countywide housing study with Maxfield Research in the amount Joint Study for Commuter Rail Related Development April 13, 2005 PAG E 2 of $75,000.00. County staff verified with the Metropolitan Council that those funds could be used as the three cities entire local match, as long as the grant amount the three cities requesf is $75,000.00, or less. The cities requested $75,000.00 and we received the full amount ofi the request. This project served as an excellent opportunity to receive outside planning expertise and recommendations, without incurring additional cost in the City's Planning budget. It also may serve as a backdrop for future development discussion for land surrounding the Northstar Commuter Station site. This approach while interesting, hit staff and the Council at a time when the first priority would seem to be site approval of the station site. However, in the spirit of multi-jurisdictional cooperation and with this program being consistent with the City's past Heights joint planning efforts and consistent with the City's desire to obtain Livable Communities dollars for future housing opportunities, the study was approved and work commenced. A full report is now available upon request. RECOMMENDATION Staff recommends that the Council allow a short (15 minute) block of time at its work session meeting of, April 18, 2005, to allow BIKO and Associates the opportunity to present its findings to the City Council. These findings are meant to be a basis for further development discussion. Upon receiving Council's direction, staff will use the findings in whatever manner Council deems appropriate. M-05-31 '! � � CffY OF FRIDLEY DISCUSSION ITEM CONFERENCE MEETING OF APRIL 18, 2005 Date: April 13, 2005 � To: William Burns, City Manager� From Subject Scott Hickok, Community Development Director Paul Bolin, Asst. Executive HRA Director Islands of Peace Project RFQ M-05-30 The possible sale of the properties at 190 and 191 Island Park Drive have generated a number of discussions and work tasks for staff. At the joint Council / HRA meeting on March 28th Community Development and HRA staff were given the direction to begin discussions with the development community as to what types of projects may be desirable in the Island Park Drive area. There was also much discussion of not purchasing any properties until there is a clearer vision of the final project, acquisition costs, relocation costs, and sources of funding such a project. After hearing the discussion at the joint meeting, having further discussions with a large developer (Dave Newman), and consulting with our counterparts in other cities, it seems that developing an RFQ and selecting a developer to partner with in creating a vision is the next logical step in the process. Until a final project is defined, it is impossible to develop potential costs and identify resources to pay for the project. Staff is recommending that the Council authorize staff to send the attached RFQ, with a detailed cover letter, to selected developers in order to further explore the feasibility of this project. Working with the developer will help to define what mix of building types may be most attractive to meeting community wants and needs. Staff would like to send out the RFQ as soon as possible and bring forward a recommendation for the selection of the top developer(s) at the joint Council / HRA meeting set for June 2, 2005. Staff envisions giving the Council and HRA an opportunity to meet and question the finalists at the June 2"d meeting. Islands of Peace Redevelo ment Pro' ect p J East River Road £� Island Park Drive Request for Quali�ications Fridley Housing and Redevelopment Authority 6431 University Avenue NE Fridley, Minnesota 55432 Islands of Peace Redevelopment Project Summary of Redevelopment Opportunity Introduction The Fridley Housing and Redevelopment Authority (HRA) is soliciting qualifications from private developers for potentially partnering on the Islands of Peace Redevelopment Project. This Request for Qualifications (RFQ) information packet is the primary tool that the City will use in selecting a developer for the project. This packet contains basic information about the potential project and an outline for preparing a response. Site Descriution The potential redevelopment site is located Just North of I-694 and West of East River Road. The potential project area consists of thirteen privately held parcels and City park land comprising approximately 12 acres. Please refer to Attachment B for more information. The City does not have title to any of the privately held parcels. Redevelopment Vision The goal of this project is to convert an Area of dilapidated apartment buildings into a viable residential development. The Fridley HRA envisions a mixed-use, mixed-income, mixed-housing type development which takes advantage of the close proximity to I-694, East River Road, a potential North Star Commuter Rail station site, convenient shopping opportunities, nearby school and an excellent system of parks and trails. The ideal development must be sensitive to the needs of Fridley residents, enhance access and connection to the Islands of Peace Park and the Mississippi River. Site Assemblv and Control The HRA has not assembled any parcels for redevelopment. The HRA seeks to partner with a private developer before pursuing acquisition of the properties. Other Information To assist you in preparing a response, an aerial photo showing existing site improvements has been prepared. See AttachmentA. 04/13/05 Page: 1 of 4 RFq IslandsPeace Developer Selection Developer selection will be based on qualifications, namely: experience, financial resources, depth of staff, . It is hereby understood that submission of qualifications imposes no obligation upon the HRA to proceed with the Islands of Peace Redevelopment Project. The Fridley HRA reserves the right to reject any or all submittals. A final decision on a developer is expected to occur sometime in early summer 2005. Project Time Line May 2005 May — ]une 2005 June 2005 June — July 2005 July - August 2005 Proposal Deadline City/HRA to review submitted qualifications City/HRA may meet with top developers City/HRA to select developer Partnership agreement developed Schedule developed for feasibility/ acquisition / development Proposals must be received by 5:00 p.m., Friday, May 13, 2005 and should be submitted to Paul Bolin, Assistant Executive Director, Fridley HRA, 6431 University Avenue NE, Fridley, MN 55432. One or more developers may be asked to interview before a panel consisting of the HRA and/or City Council. 04/13/05 Page: 2 of 4 RFq IslandsPeace Islands of Peace Redevelopment Project Submission Requirements It is not the intention of this request to require a formal "proposal". The City/HRA want to determine a developer's interest, experience, and financial capability for the project. We would appreciate that answers to the following questions be as concise as possible. However, we certainly welcome any information that will assist us in evaluating your interest and qualifications to partner in a project of this scope. Please submit your response to the following questions on 8.5 X 11 paper. If there are oversized materials, please submit 14 copies: 1. Developer name, address, contact person, e-mail address, website, phone and fax numbers. 2. Name of proposed project manager and resume of experience. 3. Names, addresses, e-mail address, website, and phone and fax numbers of architects, planners, market consultants, leasing agents, or other contractors anticipated for the project. Include resumes of key individuals. 4. Written discussion of the developer's perception of the market potential for the project area specifically addressing the mix of unit types, occupancy type, and potential to include affordable units into the site. The discussion should include potential unit prices, rents, values, amenities, density and other relevant information. 5. Description of experience in working with the public sector especially in regards to redevelopment projects integrating affordable housing with market rate and upper-end housing. 6. Provide two bank references including the name of the bank or financial institution, address, phone and fax numbers, and contact person. 7. Provide a current financial statement of the developer and partners (this information should be in a separate envelope labeled HRA Attorney and will be kept confidential). 8. Brief description of what the developer would expect from the City/HRA with respect to public improvements, site improvements, environmental assessments and related expenses. 9. Description of representative development projects completed within the last three years. For two of the projects include an explanation of the process, project financing, brochures, photographs, artists renderings, project pro formas, etc. Developers might select these two projects base on their similarity to this RFQ, uniqueness of design, involvement of the public sector or other issues. 10. Provide five references of city officials of completed development projects and any references from other cities. Contact Person 04/13/05 Page: 3 of 4 RFq IslandsPeace Each developer should prepare fourteen copies and submit them to: Paul Bolin Assistant Executive Director Fridley HRA 6431 University Avenue NE Fridley, Minnesota 55432 Questions can be directed to either Paul Bolin, Fridley HRA at #763-572-3591 or Scott Hickok, Community Development Director #763-572-3590. City Fax #763-571-1287 City TDD #763-572-3534 Attachments A. Aerial photo of area B. Assessors information for properties in development area 04/13/05 Page: 4 of 4 RFq IslandsPeace -----Original Message----- From: Hickok, Scott Sent: Thursday, April 07, 2005 10:36 AM To: 'dennis.welsch@ci.Roseville.mn.us'; 'tsimonson@ci.shoreview.mn.us'; 'mmcmonigal@stlouispark.org'; 'mgrimes@ci.golden-valley.mn.us'; 'grant.fernelius@newbrightomm�.gov'; 'James.Ericson@ci.mounds-view.mn.us'; 'Scott.Clark@ci.arden-hills.mn.us'; 'bpalmborg@ci.richfield.mn.us' Subject: Redevelopment Questions Dear Friends and Community Development Colleagues: The City of Fridley is contemplating a redevelopment project that would involve the purchase of 11 apartment buildings (primarily 12-unit buildings 70 — 80% occupied), a duplex, and 2 single family homes. Twelve and a half acres of land are involved. The acreage abuts the Mississippi River and a riverside park. Though the plan is in its early stages, development talks have gained momentum by receiving considerable early stage City Council support. While having exciting potential, it may be one of if not the most aggressive redevelopment in recent Fridley's history. Your cities have been doing great things and it has been exciting to see the change. You likely have done a redevelopment or redevelopments that make this 12.5 acre project look small. As a result, our staff was hoping to gain from your experience. We have prepared a short survey and hoped that at your convenience you could answer the questions and respond back. Of course, redevelopment is very complex and your experience may not be neatly defined by answers that fit in the small spaces below. We'll be glad to take whatever piece of your experience you can share and welcome any and all advice we receive. Thank you in advance for your help. Questions for Redevelopment Proiects 1) Has your city recently (past 5 years) undertaken any redevelopment efforts were you were buying a large number of homes? 2) If so, what were the elements of the project? a. Original Site i. Original Land Use(s) ii. Size acres. iii. # of properties acquired 3) Were any of the properties acquired multi-family residential? # of units a. Were relocation benefits paid? $/unit removed b. Did you work with a relocation consultant ? Who? c. Did you approach the acquisitions in a piecemeal fashion, or enter into negotiations with all property owners at the same time? 4) Were all acquisitions voluntary or was condemnation necessary? 5) What was the final project? (ie. Type of development: residential, commercial, industrial, or mixed use, # units, sq. footage of retail, etc.) 6) Did the City act as developer, hire a developer, or partner with a private developer? 7) How was final project design developed? (in-house, consultant, developer) 8) What was the City's investment in the project? What were the before & after tax values for the project area? 9) Did the City's actions result in any lawsuits? As best possible, please explain the elements of the lawsuit(s). 10) Any other comments/advice you would care to share with a City contemplating a large redevelopment project? Thank you for your help. Scott Seott J. Hiskok, AICP Community Development Directar City af Fridley 6431 University Avenue NE Fridley. MN 55432 (163) 572-3590 hickoksL� si.fridley.mn.us To: From: Re: Date: MEMORA � FINANCE DEPARTMENT CITY OF FRIDLEY � fDVM RICHARD D. PRIBYL FINANCE DIRECTVR William W. Burns, City Manager �{ � � Richard D. Pribyl, Finance Director Bonding for Street Reconstruction April 14, 2005 In preparing the Budget for 2006, staff reviewed a possible change to method of financing the street reconstruction projects for the years 2005, 2006, 2007 and 2008. Due to the magnitude of the projects and the impact that it has on the city's overall fund balances, an alternative financing tool is being proposed. The proposed method of financing these projects would be to use General Obligation Bonds sold over a four-year period to provide the funding for the projects. The debt would then be paid back over a period of ten years on each of the issues. The total bond size would be reduced by the applicable state aid and annual assessments that go along with each years project as shown below. Project Assessment General Total Total Portion Levy Portion Bond 2005 $ 2,100,000.00 $500,000.00 $ 1,175,000.00 $ 1,675,000.00 2006 $ 2,300,000.00 $ 500,000.00 $ 1,375,000.00 $ 1,875,000.00 2007 $ 2,400,000.00 $ 500,000.00 $ 1,475,000.00 $ 1,975,000.00 2008 $ 2,500,000.00 $500,000.00 $ 1,575,000.00 $ 2,075,000.00 As this table indicates, an additional annual general levy would be required for the repayment of this general obligation debt. This would be outside of any levy limit imposed by the State and also would be outside of the charter limitation. Since the County is still suffering from the effects of their computer conversion, we have not received current valuations to use to estimate property tax consequences, but have estimated them using the information we had available this past summer/fall when working on the Nature Center. On the next page you will find the estimates of what a home valued at $200,000 would incur in additional taxes based on the levy to repay the new General Obligation debt for the street reconstruction. The debt was amortized over a period of 10 years. The ten year period has been used in this case simply due to the past policy of spreading assessments over a period of ten years on street reconstruction projects. The special assessments that are a part of the project are also based on ten years. (EST.) Total Bonds Bonds Bonds Bonds Annual 2005 2006 2007 2008 Taxes 2006 $ 14.00 $ 17.00 $ 31.00 2007 $ 14.00 $ 17.00 $ 18.00 $ 49.00 2008 $ 14.00 $ 17.00 $ 18.00 $ 19.00 $ 68.00 2009 $ 14.00 $ 17.00 $ 18.00 $ 19.00 $ 68.00 2010 $ 14.00 $ 17.00 $ 18.00 $ 19.00 $ 68.00 2011 $ 14.00 $ 17.00 $ 18.00 $ 19.00 $ 68.00 2012 $ 14.00 $ 17.00 $ 18.00 $ 19.00 $ 68.00 2013 $ 14.00 $ 17.00 $ 18.00 $ 19.00 $ 68.00 2014 $ 14.00 $ 17.00 $ 18.00 $ 19.00 $ 68.00 2015 $ 14.00 $ 17.00 $ 18.00 $ 19.00 $ 68.00 2016 $ 18.00 $ 19.00 $ 37.00 2017 $ 19.00 $ 19.00 Please be aware that these are only estimates and we have not involved Ehlers as yet. Should Council find that this proposal has merit, we would review this information with Ehlers and update this information with all the current market data. � City of Fridley TO: William W. Burns, City Manager �� PW05�030 � FROM: Jon t�l: liaukaas, Public Works Director DATE: April 15, 2005 SUBJECT: Rice Creek Watershed District A portion of the 2005 street reconstruction project is in the Rice Creek Watershed District (RCWD) and, therefore, we need to obtain a permit from them prior to beginning construction. We have been working with them for the past few months to create a plan that is acceptable to tl�em and meet their permit requirements. The RCWD rules are quite vague for reconstruction projects and that is why this process has taken so long. There are two primary issues the RCWD is looking for conslxuction projects to address: treatrnent of storm water and infiltration/ground water recharge of excess runoff. In the District s opinion, our street reconstruction project is a°land disttarbing act�vity in their definition of °development" and, therefore, we are required to meet their rules despite the fact that we are not increasing the impervious area at all. They have been relatively consistent on this issue for some time and only give exemptions if the physical characteristics won"t allow it The second issue dealing with infiltration is more af a prob{em. According to the District ac#rtinistrator, their Board members have asked them to take a tighter interpretation of the rules and require infiltration on all projects unless tl�e soils or ground water prevent it Rule C.3.k. reads as follows: Devetaprnent resulting in the creation of impervious surfaces must explicitly adcl�-es.s use of besi management practices (BMPs) to first fimit the toss of pervious area; and second, to infiltrate runoff which does occur from impervious areas to the extent feasible considering site-•specific conditions. BMPs include the use of vegetated swales, pond outlets perched above ground water levels, use of infiltration systems, .... In the District s opinion, even the replacement of our roads is considered creation of impervious surfaces and, therefore, we must meet this infiltration requirement April 15, 2005 Page 2 The treatrnent of the storm water runoff can be accomplished through the installation structural storm water treatment devices similar to what we installed on the south side of Locke Lake. The cost for this is estimated to be �60,000 to �75,000 for this area. To create underground infiltration using perforated storm sewer pipe and large gravel beds is estimated to cost �60,000 to �90,000 for this area. This becomes much more important in 2006 when the entire 3.6 miles of reconstruction is within the RCWD and would require a permit and storm water improvements to meet their rules. The City attorney, Fritz Knaak, has given us an opinion that the District rules may not be enforceable. We would like to discuss with the City Council to what extent we should fight the RCWD on these requirements. Jtlti:cz City of Fridley TO: William W. Burns, City Manager��� FROM: Jon t1. 'flaukaas, Public Works Director DATE: April 12, 2005 SUBJECT: Community Park Ballfield Regrading PW05-029 When putting together the 2005 str-eet reconsfi uction project, we realized there was going to be a substantial amount of excess granular material that could be used to improve the drainage of the Community Park ballfields. We will see a savings of several thousand dollars by having the material disposed of and graded out at Community Park, but it will not offset the additional expenses of completing the project The seeding, infield construction, changes to the fencing and installation of a new imgation system will cost an additional $60,000 to �70,000. This would have to be a fund transfer to make the money available. This project can significantly improve the quality of our playing fields and attract high quality players and tournarnents to our system. The three year phased approach structures the project in such a way that the current activities will be minimally impacted. We would like to discuss this with the City Council at the upcoming conference meeting on April 18, 2005. Recommend the City Council approve the proposed project to regrade the Community Park ballfields. Jtltl:cz City of Fridley TO: William W. Bums, City Manager � � � FROM: Jon t�tlaukaas, Public Works Director DATE: April 12, 2005 SUBJECT: Lawn Sprinkling Restr-ictions PW05-028 The Water Enterprise Fund is expected to realize a net operating loss in excess of �280,000 in 2005, based on usage over the past several years. This is primarily because of the recent Charter Amendment that limits the increase in the water rate to 1.8%. This limited increase does not cover the increase in power costs, permitting, chemicals, backwash disposal and other outside costs of production to the City. In essence, it costs the City �1.31 to produce 1,000 gallons of water and we can only charge �1.12 per 1,000 gallons of water. We lose money on every gallon of water we produce. ln order to promote water conservation and reduce or limit our losses to the Water Fund, we propose to have the City Council enact a lawn sprinkling restriction beginning this summer. While an out right ban on lawn sprinkling would do much more, it becomes very punitive and will onty hurt Fridley"s image. The most common form of lawn sprinkling restriction is the odd/even method. Properties with an odd number address are allowed to sprinkle on odd numbered dates and vice versa. Watering would also be restricted to only the moming hours between midnight and noon to reduce the amount fost through evaporation. This is very common throughout the metro area. Other cities that have enacted such ordinances have experienced a 10% to 20% reduction in the peak water use. We would educate our citizens through the newsletter, the Fridley cable channel, the Pocus I`lews, the Star Tribune 1`lorth Metro Section, and our City website. Enforcement would be relatively simple but would take up some staff time. We propose to allow one warning followed by fines for future infractions. We would like to discuss this issue with the City Council at the April 18, 2005 conference meeting and recommend the City Council enact a moming odd/even lawn sprinkling ban immediately. Jt1tl:cz