HRA 02/07/2013
CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION
FEBRUARY 7, 2013
CALL TO ORDER:
Chairperson Commers
called the HRA Meeting to order at 7:00 p.m.
ROLL CALL:
MEMBERS PRESENT:
William Holm
Larry Commers
Stephen Eggert
Gordon Backlund
MEMBERS ABSENT:
Pat Gabel
OTHERS PRESENT:
Paul Bolin, HRA Assistant Executive Director
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 COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
2.Approval of January 3, 2013 Meeting Minutes
MOTION
by Commissioner Eggert to approve the minutes as presented. Seconded by
Commissioner Backlund.
Commissioner Eggert
asked for the following corrections to be made:
and
Page 3, item six, second sentence should read “..created in 1986 it was…”
that
Page 5, second paragraph, should read “Mr. Bolin replied ….”
Page 5, fourth paragraph, should read “Commissioner Eggert said that it is best to
and
maximize the use of the land and building a …”
of
Page 6, sixth paragraph, third sentence, should read “There could be a coordination
developments
that would…”
HRA Meeting of February 7, 2013 2
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MINUTES
APPROVED AS AMENDED
3.Awarding of Mowing Contract
Paul Bolin,
HRA Assistant Executive Director, said that a formal proposal process took
place in conjunction with the City's Community Development Department. The same
contractor is often used for both HRA and City weed abatements. On February 1, three
proposals were received ranging from $765 to $1,430 / mowing cycle for the 28 properties
owned by the Authority. Staff recommends the Authority award Passau Inc. the contract to
mow the Authority properties in 2013. Passau Inc. is best suited to meet the needs of the
HRA, experienced in Fridley, and had the lowest price.
Chairperson Commers
asked how often the mowing cycle happens.
Mr. Bolin
replied typically every two weeks but if the weather is unusually dry it will be less
often and if the condition is wet it will be more often. The goal is to maintain the grass to
residential standards.
Chairperson Commers
asked if the Highway Department is responsible to mow the middle
island on University Avenue.
Mr. Bolin
answered yes; the city does mow that area on a regular basis.
Commissioner Eggert
asked how the 2013 price relates to last year.
Mr. Bolin
replied that it is identical; since 2011 there has not been a price increase.
Commissioner Backlund
asked if the contractor was bonded, insured and furnished their
own equipment.
Mr. Bolin
replied that contractors must meet minimum liability insurance requirements and
are required to have a bond on file. They are also required to use their own equipment.
MOTION
by Commissioner Eggert to award the mowing contract to Passau Inc. Seconded
by Commissioner Backlund.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
INFORMATIONAL ITEMS:
1.Gateway Northeast Update
HRA Meeting of February 7, 2013 3
Paul Bolin,
HRA Assistant Executive Director, stated that Kurth Surveying has completed
the survey of the lot at 6071 University Avenue, the former Sinclair site. City planning staff
found three different surveys of the site that showed different parcels and different square
footage. Kurth found an additional 2,500 sq. ft. that didn’t show up on the surveys that were
on file. Information was originally recorded properly, but typos on the County's end, over
the years led to the survey confusion.
Chairperson Commers
asked how this would change the footprint of the lot.
Mr. Bolin
replied that it changed from 15,210 to 18,140 sq ft. Mr. McNutt is now marketing
this to regional and national retailers. He is also working with the Mid-America Group who
works with regional national groups to come into this area. Mr. McNutt has also started on
site and building plans. He hopes to have plans in front of the Authority at next month’s
meeting.
Commissioner Backlund
asked if the property would have to be re-titled.
Mr. Bolin
replied no; there are no problems with the title as it currently exists.
Commissioner Eggert
asked about the length of the exclusive agreement with Mr. McNutt.
Mr. Bolin
stated that the exclusive agreement goes through April; if Mr. McNutt can’t
deliver what the Authority would like to see on this site the Authority is not obligated to sell
to him.
Chairperson Commers
asked if there were ongoing or continuing efforts to get the walkway
across at that location.
Mr. Bolin
said that is something staff will continue to pursue. Right now there are no active
grant applications out or to be submitted in the near future. The survey revealed that there is
enough land area for an overpass without taking any of the parcel to do that.
Mr. Bolin
said that the Lyons/Trident Development out of St. Cloud continues to have
discussions to construct a 100 unit residential building that would include 50 upscale
professional units and 50 units for active seniors. This would include underground parking
and be connected to a common clubhouse area. They are working on surveying the property
and laying out potential site plans. The other group staff have talked with is OneCorp Group
out of Florida. They own the Citgo station and are waiting for market study results and will
meet with staff this month. Staff has also met with a rental developer who has done a
number of large developments near the Elk River rail station and the Big Lake rail station.
This developer was under the impression that the grant the city received to do planning
around the rail station was for the pedestrian overpass. Having that overpass would be key to
making his development plan work. When he found out the grant was not successful for the
overpass he is no longer excited about this site. Staff will keep an open dialog with him.
Chairperson Commers
asked why the overpass was so crucial to him.
HRA Meeting of February 7, 2013 4
Mr. Bolin
stated that the overpass would be essential for funding purposes; anything within
½ mile is considered to be in the transit area but funders are now changing that ½ mile to a
10 minute walk time. With University Avenue and the fences, some properties could be
within walking distance if it were easy to get across which is one of the reasons he is
interested in the overpass.
2.Medtronic Tax Valuation Update
Darin Nelson,
Finance Director, said that Staff have reached an agreement with Medtronic.
Mary Smith will negotiate the difference of about $26M from 2009-2014. This has an
impact to the HRA; $43,000 in administration expenses over six years and $12,000 in
reduced land payments over the six years. At this point and time with this property she felt
the values were market values and were similar to other businesses of this sort.
Chairperson Commers
asked if the money would come out of the Authority’s account.
Mr. Nelson
said that it would and that staff would try to get dismissals for prior years; but in
this case staff is abating 2009-2012. The County would take the money out of the proceeds.
Chairperson Commers
asked if prior financials needed to be adjusted.
Mr. Nelson
answered no.
Chairperson Commers
asked if an agreement had been finalized.
Mr. Nelson
stated that an agreement has been reached but paperwork needed to be finalized
with the County.
3.Housing Replacement Program Update
Paul Bolin,
HRA Assistant Executive Director, stated that this week properties came through
on the MLS that met the Authority’s criteria and this afternoon staff looked at a home that
was a good candidate for the HRP program. An offer will be made tomorrow and the lot
would be one that would sell fairly quickly.
th
Mr. Bolin
said that a public hearing will be held at the March 7 meeting to sell 5833 2 ½
Street to Novak Fleck Builders. Novak Fleck is proposing to construct a home identical to
the home located on Mississippi Street. This will be a nice addition to the neighborhood. If
this house sells as quickly as they anticipate, they would like to purchase the lot next door.
Mr. Bolin
said demolitions have slowed down due to cold weather, because some of the
hazardous material is required to be wet down prior to removal. This has caused a few days
of delay but by early next week the hazardous materials should be gone and then the
structures will come down.
HRA Meeting of February 7, 2013 5
4.Housing Loan Program Update
Paul Bolin,
HRA Assistant Executive Director, said that there have been no loans or
remodeling advisor visits from January 1-15. CEE put together a postcard to be mailed out
late this week to residents promoting the Home and Garden Show and the Loan Program.
The Home and Garden Show is Saturday, February 23 at the Schwans Sport Event Center
from 9-3. 77 vendors are scheduled to attend. This year more seminars will be offered
lasting 20-25 minutes each. People can learn about pruning do’s and don’ts, financing home
improvements, common yard and garden problems, re-facing kitchen cabinets, and tips on
repair and replacing plumbing just to name a few.
ADJOURNMENT:
MOTION
by Commissioner Holm to Adjourn. Seconded by Commissioner Eggert.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT
7:40 P.M.
Respectfully submitted,
Krista Peterson
Recording Secretary