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HRA 11/01/2012 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION November 1, 2012 CALL TO ORDER: Chairperson Pro Tem Gabel called the HRA Meeting to order at 7:05 p.m. ROLL CALL: MEMBERS PRESENT: William Holm Pat Gabel Steven Eggert MEMBERS ABSENT: Larry Commers OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director William Burns, City Manager Jim Casserly, Development Consultant Darin Nelson, Finance Director/Treasurer Becky Kiernan, Accountant ACTION ITEMS: 1.Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 2.Approval of October 4, 2012 Meeting Minutes MOTION by Commissioner Eggert to approve the minutes as presented. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 3.Approval of Home and Garden Show Administrative Contract Paul Bolin, HRA Assistant Executive Director, stated that Fridley has been the fiscal agent for the Home & Garden Show for 15 years. (Blaine and Mounds View) Revenues from the booth rental cover all expenses for the show. Since 2005, the Home and Garden Show has contracted with Marsha Wagner from Castle Visions to perform all administrative tasks for Housing and Redevelopment Authority Meeting of November 1, 2012 2 the show. Her work has been excellent and much appreciated by all. Staff recommends approval of the contract authorizing Castle Visions to perform the administrative work for the 2013 Home and Garden Show. Chairperson Pro Tem Gabel asked what the date was for the 2013 show. rd Mr. Bolin answered February 23 from 9-3 at the Schwan’s Center new exhibition hall which will be great for a show like this. In the past, vendors were in three different areas and now they will all be in one large area allowing larger booth space for the vendors too. Commissioner Eggert recalled that the event had a good turnout last year. Mr. Bolin agreed it was a good turnout. Attendance is really weather dependent; better weather equals a better turnout. A few years ago we had bad weather and attendance was down quite a bit. Staff is excited to move to the new expo center. Commissioner Eggert asked how the event is advertised to residents. Mr. Bolin replied that it is on the City Website, City Newsletter, and advertised in the Sun Focus, Blaine Shopper, Mounds View paper and the Star and Tribune; plus Clear Channel donates billboard space to promote this event. Chairperson Pro Tem Gabel asked where the billboard was located. Mr. Bolin replied that it varies from year to year and he was not sure this year where it will be located. Usually it is somewhere along Highway 694 within Fridley, one on Highway 35 next to Mounds View and on Highway 10. Chairperson Pro Tem Gabel stated that HRA is front ending the cost but will be reimbursed as the event pays for itself. Mr. Bolin answered yes, that is correct. MOTION by Commissioner Eggert to approve the Home and Garden Show Administrative Contract. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 4.Approval of Resolution Adopting Addition of Phase VIII to HRP District #1 Paul Bolin, HRA Assistant Executive Director, stated that in December 2010, the Authority approved an amended and restated plan for the Housing Replacement Program (HRP). Parcels can be added by HRA Resolution, provided the parcels meet required criteria. Once homes are in the program and a new home is constructed, the Authority is able to collect increment for 15 years on improvements. Housing and Redevelopment Authority Meeting of November 1, 2012 3 Mr. Bolin stated that Staff recommends approval of Phase VIII of the Housing Replacement Program for the homes located at 5909 Main Street, 561 Ironton Street and 587 Ironton Street. Commissioner Holm assumed all three parcels were candidates for demolition. Mr. Bolin answered yes. The environmental work has been done and reports have been received. Staff is also working with the Engineering Department to put bid packets together in order to solicit bids to demolish these homes. The bids will be on the agenda for the December meeting. MOTION by Commissioner Eggert to approve the Resolution Adopting Addition of Phase VIII to HRP District #1. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS: 1.Housing Replacement Program Update Paul Bolin, HRA Assistant Executive Director, stated that the new construction continues to move along. Novak Fleck has received the occupancy certificate and closes on Monday. The home at 465 Mississippi Street is sold and coming along well. Boulder Construction is building a second home as part of the HRP Program and they are scheduled to close on the home at 381 Ironton Street. Mr. Bolin said that at the September meeting the Authority approved the sale of the lot to Home Detail at 5745 Third Street. The buyer has the financing together and is closing on the lot Monday morning. They expect to start construction by November 15 which is the sixth home since June that has been built in Fridley because of this program. The builders are asking staff to find more lots for them to build on and we are looking. Mr. Bolin stated that this week there was nothing on the market under $100,000. Last week staff made two offers; one on Lyric Lane they were asking $82,000 and staff made a lower th offer lower and we were not successful. The other offer was for the home on 66 Avenue and we were not successful on that bid either. What staff has seen happen is that investors are making blind bids on properties and once the investors look at the home they don’t complete the purchase. There is a chance we may still end up with one of these two properties if they come up on the market again. They are both excellent candidates for this program. Mr. Bolin said that the property on 2 ½ Street that was split into two buildable lots was approved by Planning Commission and goes to City Council Monday night. Housing and Redevelopment Authority Meeting of November 1, 2012 4 Chairperson Pro Tem Gabel was glad construction is starting to happen on Third Street. The Mississippi home is coming along well. She asked if home prices were still “in the ball park” for staff to purchase properties. Mr. Bolin answered yes; we don’t want to overpay nor take something off the market that the private market could fix up. Staff are truly looking for homes that should be torn down and demolished. rd Commissioner Holm asked if the home at 5745 3 Street was part of Gateway West. Mr. Bolin answered yes. Commissioner Holm asked if HRA still had several lots for sale. Mr. Bolin answered yes, HRA has eight lots for sale. Commissioner Holm asked if the home on Main Street was owned by a Government agency. Mr. Bolin replied that was a Freddy Mac property; our offer was rejected and an investors offer was accepted. Once the investor looked at the property they didn’t want it and it came back to us. Chairperson Pro Tem Gabel asked if staff looks at the homes before they make an offer. Mr. Bolin answered yes; some homes are not good candidates for this program because they are in too good of shape. Commissioner Holm asked if staff has seen any homes that would qualify for the rehabilitation program like the home that was completed on Mississippi. Mr. Bolin said that he has not seen anything that would be a good candidate for the Home Improvement Demonstration Program. The Housing Replacement Program gives staff the flexibility to also buy and rehab homes to be put back on the market. 2.Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, reported that in October two RLF loans were closed making a total of 11 loans year to date. There was one Remodeling Advisor Visit for a total of 20 year to date. Housing and Redevelopment Authority Meeting of November 1, 2012 5 NON AGENDA UPDATE: William Burns, City Manager, stated that an article in the May newsletter reported home values in Fridley was behind 41%; now Fridley is at 55.6% in sales. Fridley is still moving slow as far as increased values but we are starting to see them increase a bit and are going in the right direction. ADJOURNMENT: MOTION by Commissioner Eggert to Adjourn. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 7:32 P.M. Respectfully Submitted, /6,/,-„ Mt914641-1AQ 74 Krista Monsrud Recording Secretary CITY OF FRIDLEY SIGN-IN SHEET HOUSING & REDEVELOPMENT AUTHORITY MEETING Nloufe,rIIi'' I) Name and Address Agenda Item of Interest