HRA 03/07/2013 March 7, 2013
HRA Meeting
Regular Meeting Agenda
7:00 p.m.
City Hall, Council Chambers
Call to order
Roll call
Action Items
1. Approval of expenditures
2. Approval of February 7, 2013 Meeting Minutes
3. Public Hearing and Consideration of Resolution Authorizing Sale of 5833 2 1/2
Street NE
4. Approval of Chronology for creation of TIF District#22 -Northstar Transit
Station District
n
Informational Items
1. Gateway North East
2. Housing Replacement Program
3. Housing Loan Program Update
Adjournment
K:\COMMISSION MINUTES\HRA Commission\HRA 2013\13 03 07.docxK:\COMMISSION MINUTES\HRA Commission\HRA
2013\13 03 07.docx
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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:
Page 3, item six, second sentence should read "..created in 1986 and it was..."
Page 5, second paragraph, should read "Mr. Bolin replied that ...."
Page 5, fourth paragraph, should read "Commissioner Eggert said that it is best to
maximize the use of the land and building and a ..."
Page 6, sixth paragraph, third sentence, should read "There could be a coordination of
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
1/2 mile is considered to be in the transit area but funders are now changing that '/2 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.
Mr. Bolin said that a public hearing will be held at the March 7th meeting to sell 5833 2 '/2
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,
P\A-1:4k-- gef/119fin
Krista Peterson
Recording Secretary
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ACTION ITEM
Mik
HRA MEETING OF MARCH 7, 2013
CITY OF
FRIDLEY
Date: February 27, 2013
To: Darin Nelson, Acting City Manager
From: Paul Bolin, Asst. Executive HRA Director
Subject: Public Hearing - Sale of 5833 2 1/2 Street NE - HRP
Dale Anderson, representing Novak-Fleck Builders (NFB), submitted a lot reservation
agreement to build and sell a new home at 5833 2 1/2 Street. NFB made an offer of
$30,000 for the lot, a price justified by comparable sales and the City Assessor.
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The Authority purchased the property from Bremer Bank in September 2010 for
$35,000. The interior of the home had been flooded by a broken water pipe and was
full of garbage. The home was demolished in December of 2010.
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The property is included in the Authority's HRP TIF District. The Authority will collect
the increment generated from the new construction for the next 15 years. Using rough
numbers, it is estimated this. increment will total $1,200 to $1,500 per year to help
defray the Authority's invesment in the site.
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Over the past 9 months, NFB has had success building and selling on 3 other infill lots
in the City. NFB has designed the home to meet the conditions and intent of the
Authority's HRP Guidelines. The home will have 3 finished bedrooms and 2 finished
bathrooms. A set of plans is attached to this memorandum.
Staff recommends approval of the attached resolution authorizing the sale of this lot to
Novak-Fleck Builders for $30,000.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF FRIDLEY
COUNTY OF ANOKA
STATE OF MINNESOTA
HRA RESOLUTION NO. 2013-
A RESOLUTION AUTHORIZING THE SALE OF RESIDENTIAL PROPERTY BY THE
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY,
MINNESOTA
BE IT RESOLVED by the Board of Commissioners(the"Commissioners")of the Housing and Redevelopment
Authority in and for the City of Fridley, Minnesota(the "Authority") as follows:
Section 1. Recitals.
1.01. It has been proposed that the Authority sell certain residential property (the "Property") described
below:
PIN: Street Address
23-30-24-23-0173 5833 2 1/2 Street NE
Section 2. Findings.
2.01. The Authority hereby finds that it has approved and adopted a development program known as the
Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program")
pursuant to Minnesota Statutes, Section 469.001 et seq.
2.02. The Authority hereby finds that it has approved and adopted a Housing Replacement District Plan(the
"Plan") and created Housing Replacement District No. 1,pursuant to and in accordance with Laws of
Minnesota 1995,Chapter 264,Article 5,Sections 44 through 47;Laws of Minnesota 1996,chapter 471,
article 7, section 22; Laws of Minnesota 1997, chapter 231, article 10, section 13;Laws of Minnesota
2002,chapter 377, article 7, section 6;Laws of Minnesota 2008,chapter 154,article 9,section 19, and
Laws of Minnesota 2010, Chapter 216, Section 42 (collectively"The Act").
2.03. The Authority hereby finds that it has performed all actions required by Minnesota Statutes for the sale
of the Property.
2.04. The Authority hereby finds that the sale of the Property promotes the objectives as outlined in its
Redevelopment Program and the Plan.
Section 3. Approval of the Sale.
3.01 The sale of the Property is hereby approved for a price of not less than $30,000.
HRA Resolution 2013- Page 2
Section 4. Authorization for Execution and Delivery.
4.01. The Chairman,the Executive Director and Assistant Executive Director are hereby authorized
to execute and deliver any documents necessary to effect the sale of the Property in accordance
with the Authority's Housing Replacement Program.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF FRIDLEY, MINNESOTA, THIS 7th DAY OF MARCH, 2013.
LAWRENCE R. COMMERS - CHAIRMAN
ATTEST:
PAUL BOLIN- ACTING EXECUTIVE DIRECTOR
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f ACTION ITEM
_� CITY OF FRIDLEY HRA
cmr OF
FRIDLEY MARCH 7, 2013
Date: March 1, 2013
To: Darin Nelson, Acting City Manager
From: Paul Bolin, Acting Executive HRA Director
Subject: Creation of TIF District #22 (Northstar Transit Station District)
The 2007 and 2008 legislative sessions gave the City of Fridley the ability to
create a Transit TIF District and to pool tax increment from 3r existing districts to
pay for public improvements around the Northstar Station Area.
At the June 2009 HRA meeting, the HRA was asked to approve a motion
n authorizing staff to move forward with the statutory requirements for creating the
Northstar Transit TIF District. After discussion over the concerns of starting the
time clock for the district, prior to having an identified project, the HRA decided to
wait until a project was imminent.
Developer John Allen has purchased the "JLT" site and made an application to
the City for the land use approvals needed to build on the site. Staff believes the
time is now right for the district to be created and capture the value of the
development being proposed for the property located at 5601 East River Road.
Because the property will be built in phases, the Authority can, delay collection of
increment for 4 years.
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Mr. Allen's proposed project consists of a 140,000 sq. ft. office / showroom /
warehouse, 300,000 sq. ft. of office, and 120 units of residential rental property.
TIF District#22 is necessary to allow the Authority to assist redevelopment in the
Northstar Transit TIF area, by capturing the increment created by this new
development. The attached chronology calls for setting the date of May 6, 2013
for the Council to hold the public hearing needed to create TIF District#22.
Attorney Casserly and staff will provide an overview of the proposed district on
Thursday. The TIF Plan itself is still being refined and will be available to the
Authority, with a more detailed analysis, prior to the April 4th HRA Meeting.
Recommendation:
Staff recommends that the Authority approve a motion, authorizing staff to take
the steps necessary for the creation of TIF District#22, Northstar Transit Station
District.
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CITY OF FRIDLEY
PROPOSED CHRONOLOGY
/'■ CREATION OF TAX INCREMENT FINANCING DISTRICT NO. 22
(Northstar Transit Station District)
THURSDAY, MARCH 7, 2013 HRA MEETING
(review of project)
MONDAY, MARCH 11, 2013 COUNCIL MEETING
(1) call for public hearing
TUESDAY, MARCH 19, 2013 NOTICE PROVIDED TO COUNTY COMMISSIONER
(minimum 30 days prior to publication)
NOTICE PROVIDED TO COUNTY RE: ROAD COSTS
(minimum 45 days prior to public hearing)
MONDAY, APRIL 1, 2013 TIF PLAN PROVIDED TO ANOKA COUNTY
(minimum 30 days prior to public hearing)
TIF PLAN PROVIDED TO SCHOOL DISTRICT (#14)
(minimum 30 days prior to public hearing)
THURSDAY, APRIL 11, 2013 NOTICE OF PUBLIC HEARING PROVIDED TO
NEWSPAPER
/'N THURSDAY, APRIL 18, 2013 PUBLICATION OF PUBLIC HEARING NOTICE
(10 - 30 days prior to public hearing)
THURSDAY, MAY 2, 2013 HRA MEETING
(1) modify Redevelopment Plan
(2) modify existing TIF Plans
(3) create TIF District No. 22
(4) adopt TIF Plan
MONDAY, MAY 6, 2013 CITY COUNCIL MEETING - PUBLIC HEARING
(1) modify Redevelopment Plan
(2) modify existing TIF Plans
(3) create TIF District No. 22
(4) adopt TIF Plan
MMB:4838-7391-3362,V. 1
/.■
INFORMATIONAL ITEM
HRA MEETING OF MARCH 7, 2013
CDY OF
FRIDLEY
Date: February 28, 2013
To: Darin Nelson, Interim City Manager/ Finance Director
From: Paul Bolin, Asst. Executive HRA Director
Subject: Gateway Northeast Update
6071 University/ McNutt:
Dave McNutt has proposed developing between 2,000 and 4,500 square feet of retail
on the former Sinclair filling station site. In January, the Authority adopted a resolution
to provide Mr. McNutt the ability to market 6071 University Avenue and work on his
financing package as he takes his project through the City's land use process.
Mr. McNutt reports that he has, at the suggestion of his architect, held off on developing
n drawings until he finds a suitable anchor tenant. He feels that the quality of anchor
tenants McNutt wants to bring to the site, will want input on the plans and design of the
building. The Authority will have an opportunity to formally review and comment on the
plans when completed.
Lyons / Trident Group:
The Lyons/Trident Group, developers of the "Landmark" senior building located at
Mississippi Street and Old Central Avenue, met with staff on February 22nd to discuss
the potential of developing the entire site. More specifically, they have an interest in
developing from just south of McNutt's site down to the townhomes.
Lyon's survey work is almost complete and they have started to layout potential site
plans based on how much land area is available to them. They are still proposing two
distinct buildings, with a clubhouse building between them, and underground parking.
One of the buildings will be marketed towards young professionals and the other
building will be marketed to younger, active seniors. They would like to potentially
develop another 60-100 units of senior housing. They have identified some very nice
units that would fit on the shallower lot depths.
OneCorp Group:
Hector Vinas from the OneCorp group was again unable to meet with staff. I have been
try to find out what their market study people think about the viability of the area for
retail. I will provide an update on Thursday night.
Fridley Animal Hospital:
Dr. Lemay has identified a few replacement sites that may work for his clinic. Earlier
this week staff submitted a written purchase agreement for Dr. Lemay's consideration.
Dan Wilson, relocation consultant, has reviewed the potential replacement sites and
identified relocation costs/benefits to be in the $60,000 to $120,000 range.
As has been the HRA's custom, the purchase offer was for the appraised value
($375,000) plus the estimated relocation benefits ($125,000), pending Authority Board
approval. His initial response indicated that he thinks the offer is $100,000 less than it
should be. Dr. Lemay understands that the Authority does not negotiate on price, but
that we may have some flexibility on closing dates and move out dates. If Dr. Lemay
agrees to terms, and signs the purchase agreement before Thursday, it will be placed
on your agenda as an action item.
INFORMATIONAL ITEM
HR MEETING OF MARCH 7, 2013
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CITY W
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Date: February 28, 2013
To: Darin Nelson, Interim City Manager lv C'1 l_>
From: Paul Bolin, Asst. Executive HR
Director ��
Subject: Scattered Site Housing Replacement Program Update
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Purchases
During the past month, staff was able to successfully negotiate the purchase of one home. The
home is located at 4656 2nd Street for$72,500. The home far exceeded the requirements for
inclusion in our housing replacement program. The home has a considerable amount of mold
and damage on the interior. The lot will provide for a"walk-out" style home, as there is a slope
from front to rear.•� �
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Sales
Discussions with Novak-Fleck, Boulder Contracting, &Home Detail, leave staff optimistic that
we are going to see continued lot sales and new construction as spring and summer arrive.
Boulder has interest in the newly demolished lots on fronton and Home Detail is currently
working on plans with 2 potential purchasers for the 3rd Street lots.
Lots under Construction
Home Detail continues to move towards completion of the home at 5745 3rd Street. As
previously mentioned, they are working on plans and financing with other potential buyers that
have shown an interest in the area. Staff will provide updated pictures at next week's meeting.
Demolition
Buberl Recycling has completed demolition of the homes at 561 fronton, 587 fronton and 5909
Main Street. The remaining grading/seeding will be completed once the snow melts.
r-�
Fridley HRA
Housing Program Summary
Cover Page
March 7, 2013 HRA Meeting
Report Description
Loan Application Summary Loan application activity (e.g. mailed
out, in process, closed loans) for past
month and year-to-date.
Loan Origination Report Loan originations for past month and
year-to-date.
Remodeling Advisor Shows the number of field appointments
scheduled and completed for the
Remodeling Advisor Services
administered by Center for Energy and
Environment.
•
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HA—Paul's Documents\HRA\HRA Agenda Items\2013\March 7,2013\Housing Program CoverMarch.doc
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FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY
March 7, 2013
Nal-Agenda
UPdal
1. BAE / RER Update
Paul Hyde reports that he has been granted a 2 month extension on his closing because of the AUAR
timeframe. He now has a closing date of April 15th and says the AUAR is moving along smoothly.
Paul Hyde has also made great headway with the Navy over responsibility for different areas of
contamination. The Navy has agreed to take responsibility for any contamination that may be found
under the "Plating Shop" when that is demolished.
2. Home and Garden Show- 2013
This year's home and garden show was a huge success. The 77 vendors were extremely happy with the
new location and layout. This year's attendance was estimated to be at least 800. There were a number of
familiar faces that stopped by the booth this year,including Commissioners Backlund, Holm, Gabel and
Councilmember Varichak.
011 us at the i5tl Annual
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Co-vniwukviiity
North Metro Hone 8 Garden Show
Saturday, February 23, 2013 at the Schwan Sport Event Center
9:00 am until 3:00 pm ♦ 1740 105th Avenue Northeast, Blaine, Minnesota
Sponsored by the Cities of:
♦ Blaine ♦ tiwnv.ci_blaine.mn.us
NORTH 10
MEO
♦ Fridley ♦ w w.ci.fridley.mn.us TR
1IOM EbGARDEN
► Mounds View # wvww.ci.mounds-view.mn.us
www.northmetrohomeandgarden.cum
Staff from the sponsoring cities will be on hand
to answer your questions about housing,
development and city planning.
The Non-Agenda Update is simply a means for Staff to provide the Authority information on items that
are not regular agenda items. Topics covered include proposed projects still in the idea stage, updates on
existing projects, construction updates and other items that may be of interest to the Authority, but not
requiring public discussion or action. If there are any items you would like covered in upcoming issues of
•
the Non-Agenda Update please send me an e-mail. bolinp @ci.fridley.mn.us