Loading...
HRA 03/07/2013 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION MARCH 7, 2013 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:00 p.m. ROLL CALL: MEMBERS PRESENT: Pat Gabel Stephen Eggert Gordon Backlund MEMBERS ABSENT: Larry Commers William Holm OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Becky Kiernan, Accountant ACTION ITEMS: 1.Approval of Expenditures MOTION by Commissioner Backlund to approve the expenditures. Seconded by Commissioner Eggert. Chairperson Pro Tem Gabel asked what the deferred loan charges were. Becky Kiernan, Accountant, said that is the CEE last resort loan. Some people need emergency work done right away and can’t afford to make a payment right away. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 2.Approval of February 7, 2013 Meeting Minutes MOTION by Commissioner Eggert to approve the minutes as presented. Seconded by Commissioner Backlund. Darin Nelson, Finance Director, asked for the following clarifications to be made to the minutes: Page 4, item 2 should read as follows: has Darin Nelson, Finance Director, said that Staff reached an agreement with Medtronic. Mary valuation down to Smith will negotiate the difference about $26M from 2009-2014. This settlement does have the an impact to the HRA; $43,000 in administration expenses over six years HRA Meeting of March 7, 2013 2 ,Mary Smith and $12,000 in reduced land payments over the six years. At this point and time felt reflected the market values of similar type properties. the values ,is why we prefer .In Mr. Nelson said that it would and that to get dismissals for prior years this partially taxes for the years will case staff is abating 2009-2012. The County take the money out future tax proceeds likely the December 2013 settlement. of UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MINUTES APPROVED AS AMENDED 3.Public Hearing and Consideration of Resolution Authorizing Sale of 5833 2 ½ Street NE MOTION by Commissioner Backlund to open the Public Hearing. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:05 P.M. Paul Bolin, HRA Assistant Executive Director, stated that this is the fourth home Novak-Fleck has built since last summer. This home is nearly identical to the home at 465 Mississippi Street and has three bedrooms, two bathrooms and will provide new investment in the neighborhood. The proposed home design is consistent with the Housing Replacement Program guidelines. Staff recommends approval of the resolution, authorizing the sale to Novak – Fleck Builders, INC. Chairperson Pro Tem Gabel asked about the design on the side of the house that has no windows, she didn’t think that was very attractive. She asked if a window could be put on that side or what the reason was for that particular design. Mr. Bolin said that cost would play a small roll in this design. He would talk to Novak-Fleck about the possibility of installing a window on that side of the house. The other houses constructed always have had a side with no windows. He agreed that it isn’t visual appealing. Chairperson Pro Tem Gabel asked what the size of lot was. Mr. Bolin replied that it is a 60’ wide lot. Chairperson Pro Tem Gabel asked what the price of the home would be. Mr. Bolin answered that it would be in the $170,000-$180,000 range. Chairperson Pro Tem Gabel asked when they would start construction. Mr. Bolin replied as soon as possible; they would like to close on the property tomorrow. Commissioner Backlund asked how much width was for the house and garage. HRA Meeting of March 7, 2013 3 Mr. Bolin answered about 45’; in this neighborhood homes can go down to 7 ½’ on the living area and then usually 5’ on the garage side. MOTION by Commissioner Backlund to close the public hearing. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:15 P.M. MOTION by Commissioner Backlund to adopt the resolution authorizing sale of 5833 2 ½ Street NE. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 4.Approval of Chronology for Creation of TIF District #22 – Northstar Transit Station District Paul Bolin, HRA Assistant Executive Director, stated that in 2007 and 2008 Legislative Sessions gave the City the ability to create a special TIF district to fund public improvements around the Northstar Station area. HRA discussed district creation in 2009 but economic conditions were not right for district creation. The vacant land at 5601 East River Road (JLT Site) is expected to be the TIF generator. John Allen, Industrial Equities, has recently purchased site and has submitted plans to the City for approval Mr. Bolin stated that building permits will not be submitted until June or July. Staff would like to get this district created before any construction is started. Any time a tax increment district is created there are notices and dates that need to be followed. The key dates are as follows: th March 11 – CC Sets Public Hearing nd May 2 – HRA Reviews TIF Plan th May 6 – City Council Public Hearing Staff recommends the Authority adopt a motion authorizing staff to take the steps necessary for creating TIF District #22, Northstar Transit Station District. Chairperson Pro Tem Gabel asked if the purchase is completed. Mr. Bolin replied yes. Commissioner Backlund asked if all the area on the map was in the tax increment district. Mr. Bolin replied yes with the exception of the areas labeled 2, 3, and 4; those parcels are not part of the TIF plan project area at this time. Commissioner Backlund asked about pooling the three existing districts. HRA Meeting of March 7, 2013 4 Mr. Bolin said that is one of the things special legislation did, in addition to allowing to create this district. This allowed the city to pool districts that were expiring and use the funds for the purchase of the Northstar Station site. Commissioner Backlund asked what happens to the tax that is generated for the school district. Mr. Bolin said that detail will be explained next month as the TIF plan hasn’t been updated yet. Tonight staff is asking for approval to go ahead and do that work. When tax increment districts are created the school districts still receive the same share of taxes; that does not change. The Lamaur site has not been generating much in taxes as it is vacant and the school district will still receive money from that property. Once the TIF district is expired the school district would accrue the new value. This is a 25 year TIF district. Commissioner Backlund stated that sometimes things happen that can affect other groups unintentionally. In this case the school district would be held harmless which is good because the school district is a big player in the City of Fridley. Mr. Bolin said that a lot of people don’t understand how TIF districts work and mistakenly believe that when a project comes along the school district, County, and Stat lose their share of taxes. The school district does not lose their share and continues to get paid at the same rate it had been. Next month staff will present more numbers regarding this project. Commissioner Backlund agreed that in the end the school district comes out ahead. This project will bring in new tax revenue but there is a waiting period; in the end they benefit. Commissioner Backlund added that it is important to communicate this information to the general public so perception is not steered away from reality. This is a difficult concept for people to understand. Chairperson Pro Tem Gabel agreed that this is an ongoing educational process. MOTION by Commissioner Eggert to approvethe Chronology for Creation of TIF District #22 – Northstar Transit Station District. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY HRA Meeting of March 7, 2013 5 INFORMATIONAL ITEMS: 1.Gateway North East Paul Bolin, HRA Assistant Executive Director, said that both developers want a national or regional anchor tenant for the development they are considering. Mr. McNutt wants a retail anchor on hand before he spends a lot of money on the design. Mr. Bolin stated that the Lyons / Trident Development includes100 + units and they may want the entire site which would add an additional 60-125 units. They are laying out design options and may need to move some utilities. The OneCorp Group (Citgo) is waiting for market study results and have not found an anchor retail tenant. 2.Housing Replacement Program Paul Bolin, HRA Assistant Executive Director, stated that this month staff was able to purchase another home at 4656 Second Street for $72,000. The closing date is March 22. This home meets all the requirements for the Housing Replacement Program; it is full of mold and has some home remodeling project that went wrong in the basement. The home will be torn down and sits on a 80’ x 130’ lot with the opportunity for a walk out. The property last sold in 2005 for $184,000 and the home is foreclosed. There is a second garage that may be able to be fixed up and the home has alley way access. The market price on the lot will be around $40,000 and homes in the area are very nice. Mr. Bolin stated that the home at 5745 Third Street is moving along and the siding was to be installed this week but was delayed because of the snow. Home Detail hopes to be complete soon st so the buyers can move in on May 1. Chairperson Pro Tem Gabel noted that the fence is broken again. Mr. Bolin replied that staff is aware of this and they are waiting for materials to come in. This happened before Christmas and they are having trouble getting the material in to fix the fence. 3.Housing Loan Program Update Chairperson Pro Tem Gabel asked if they could receive an aging report. Paul Bolin, HRA Assistant Executive Director, replied that the last one was submitted in December and they are available quarterly now so there will be one in the April packet. There are only two loans delinquent over 90 days. Mr. Bolin reported that the Fridley HRA Loan Program had two loans closed in February and no Remodeling Advisor Visits. HRA Meeting of March 7, 2013 6 Mr. Bolin reported that the Home and Garden Show was a success. Over 800 people attended and about 12% were Fridley residents. The booth was busy all day and people seemed interested in the redevelopment projects that are in the works. 77 vendors attended and were happy with the attendance at the show. This year the show moved into a newer building and that all vendors were on one floor. The seminars were in a corner so people could walk by and catch part or all of it. There was a higher attendance at the seminars than in the past. The Fridley Boy Scouts staffed the children’s activity area. A meeting is scheduled in two weeks to start talking about next year’s show. ADJOURNMENT: MOTION by Commissioner Eggert to Adjourn. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 7:50 P.M. Respectfully submitted, Krista Peterson Recording Secretary