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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