Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
HRA 06/06/2013
June 6, 2013 HRA Meeting Regular Meeting Agenda 7:00 p.m. Call to order Roll call Action Items 1. Approval of expenditures 2. Approval of May 2, 2013 Meeting Minutes 3. Election of Officers 4. Public Hearing and Consideration or Resolution Authorizing Sale of 5801 3rd Street 5. Public Hearing and Consideration of Resolution Authorizing Sale of 5765 3rd Street NE 6. Public Hearing and Consideration or Resolution Authorizing Sale of 4656 2nd Street 7. Approval of Term Sheet - Hyde Development 8. Amendment to Broker's Agreement- GWNE Informational Items 1. GWNE - Site Plan 2. Housing Loan Program Update Adjournment K:\COMMISSION AGENDAS\HRA Commission\2013 HRA Commission Agendas\13 06 06.docxK:\COMMISSION AGENDAS\HRA Commission\2013 HRA Commission Agendas\13 06 06.docx May,2013 Fridley HRA Checking Accounts Payable Register Date Check# Vendor Invoice# Description Code Amount 4/25/2013 29500 APA-MN Seminar-Paul Bolin 100-0000-430-4337 85.00 85.00 4/25/2013 29507 Midwest Fence 147355 University Ave Fence Repair 100-0000-430-4346 2,250.00 2,250.00 4/22/2013 29509 Star Tribune 1000221133 Notice of Public Hearing-Land Sale 501-0000-430-4334 226.00 226.00 4/30/2013 29510 Sevenich,Butler,Gerlach,&Brazil 30113 Administrative Services-Greg Johnson 100-0000-430-4330 787.50 787.50 5/9/2013 29504 Monroe Moxness Berg 138701 Administrative Services-Jim Casserly 100-0000-430-4330,4606 1,054.00 100-0000-430-4330 6,578.65 7,632.65 5/7/2013 29508 CenterPoint Energy 9860585-0 4656 2nd St NE 501-0000-430-4338 2.68 2.68 5/14/2013 29511 Wilson Development 23187 Gateway NE-Lemay Animal Hospital Acq&Relo svc 474-0000-430-4330 1,217.60 1,217.60 5/15/2013 29503 Center for Energy&Environment 11519 Revolving Loan-5848 Washington St NE 265-0000-127-0000 10,483.00 Revolving Loan-5840 5th St NE 265-0000-127-0000 8,780.62 Loan Origination Fees 265-0000-430-4340 1,100.00 Remodel Advisor Visits-2 265-0000-430-4340 260.00 20,623.62 5/7/2013 29506 Liesch&Associates T407105 Housing Replacement-Abatement oversight 501-0000-430-4330 633.00 T407247 Housing Replacement-Asbestos/Haz Survey 501-0000-430-4330 1,613.20 2,246.20 5/28/2013 29505 Land Title Purchase Vet.Clinic- 5895 University Ave NE 474-0000-430-4520 529,421.42 529,421.42 Total May Invoices $ 564,492.67 1 of 1 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION May 2,2013 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:12 p.m. ROLL CALL: MEMBERS PRESENT: Larry Commers Pat Gabel Stephen Eggert William Holm Gordon Backlund OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Darin Nelson, Interim City Manager Becky Kiernan, Accountant Jim Casserly,Development Consultant Greg Johnson, Development Consultant ACTION ITEMS: /•■ 1. Approval of Expenditures MOTION by Commissioner Eggert to approve the expenditures. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of April 4, 2013 Meeting Minutes MOTION by Commissioner Eggert to approve the minutes as presented. Seconded by Commissioner Gabel. Commissioner Gabel asked for the following corrections to be made to the minutes: Page 1, Call to Order should read Chairperson Eemmers Pro Tem Gabel Page 2, sixth paragraph, fourth sentence should read... Novak-Fleck has a buyer for this property and it will be the fifth home they built since last summer. Page 8, second paragraph from the bottom should read Chairperson Pro Tem Gable asked if they should use some of their revenue bonds. HRA Meeting of May 2, 2013 2 Page 9, sixth paragraph, second sentence, should read... the list for a number of years now and are all in various ctates stages... UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MINUTES APPROVED AS AMENDED ti 3. Public Hearing and Consideration of Resolution Authorizing Sale of 5825 2 %2 Street MOTION by Commissioner Gabel to open the Public Hearing. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:16 P.M. Paul Bolin, HRA Assistant Executive Director, stated that last fall the HRA split the property to create two buildable lots. Novak-Fleck is proposing to build a three bedroom, two bathroom home on this property and the home specifications would exceed HRP guidelines. Staff is recommending approval of the resolution, authorizing the sale to Novak-Fleck Builders, Inc. This home's value is around $201,000 and would create a new investment in the neighborhood. Commissioner Gabel asked what the price is of the lot. Mr. Bolin replied $30,000. Commissioner Gabel asked the price of the home being built. Mr. Bolin replied$201,000. MOTION by Commissioner Eggert to close the public hearing. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:20 P.M. MOTION by Commissioner Holm to adopt the resolution authorizing sale of 5825 2 1/2 Street. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Public Hearing and Consideration of Resolution Authorizing Sale of 5961 3rd Street NE MOTION by Commissioner Gabel to open the Public Hearing. Seconded by Commissioner Eggert. HRA Meeting of May 2, 2013 3 UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:22 P.M. Paul Bolin, HRA Assistant Executive Director, stated that Home Detail Builders has offered to purchase this property for $25,000. This is the seventh lot the Authority had platted in 2006 when they started to work with Blueprint Homes. Home Detail Builders homes will fit into the neighborhood because it is the same builder that Blueprint Homes used. There is already a buyer for this home that consists of four bedrooms, two bathrooms; a total of 1,500 finished sq. ft. Staff recommends approval of the resolution, authorizing the sale to Home Detail. This home offers a new investment in the neighborhood and the proposed home design is consistent with neighboring homes. MOTION by Commissioner Gabel to close the public hearing. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:25 P.M. MOTION by Commissioner Eggert to adopt the resolution authorizing sale of 5961 3rd Street NE. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY n 5. Approval of TIF District#22, Northstar Station Transit District(TIF#22) Paul Bolin, HRA Assistant Executive Director, stated that in 2007 and 2008 Minnesota legislative sessions gave the City of Fridley the ability to create a Transit TIF District and to pool tax increment from three existing districts to pay for public improvements around the Northstar Station Area. The boundaries of the Northstar Transit Station District were defined by the legislature and include the properties shown on the map. Because of the poor economy in 2008, the HRA decided to wait until development was likely to happen in order to maximize the number of years tax increment could be collected. Mr. Bolin stated that the John Allen's proposal for the former JLT site is the type of project the Authority had been waiting for. The increment generated by this new development will allow the Authority to assist in redevelopment in the Northstar Transit TIF area. Mr. Bolin stated that every time a tax increment district is created, tax plans are modified and changes are made to the overall development program by adding new phases. Tonight the Authority is increasing the geographic area of the project area. When the special legislation was received three more parcels were authorized. This was taken to the Planning Commission on April 17 and it was approved unanimously. Staff is recommending the Authority to adopt a resolution that modifies the existing Redevelopment Plan, expands the Project Area, amends the existing tax increment districts, and approves the Northstar Station TIF District #22. City Council will hold a Public Hearing and take action on this item on Monday, May 6, 2013. Chairperson Commers asked if funds from other districts can be used to set up this district. HRA Meeting of May 2, 2013 4 Jim Casserly, Development Consultant, replied yes, that is correct. Funds can be used from r� Districts 11, 12 and 13. Any costs for this new district can be paid by any resources the Authority has and the Authority also has the ability to use funds from other districts if needed. Chairperson Commers asked if the Authority was required to do that. Mr. Casserly replied no; but those resources were used to acquire the property. Chairperson Commers asked if tax increments from those districts were included in this analysis. Mr. Casserly replied no; every district has to have its own ledger. Years ago the Authority made the decision to have a unified program and most cities that do ongoing redevelopment have adopted this model. Chairperson Commers asked if the cash flow over the 26 years is $94M and the present value is $41M. Greg Johnson, Development Consultant, stated that the present value is $41.6M and cumulative value is $84.7M. Chairperson Commers asked in exhibit 1C if the projected values were just expected types of expenses, hypothetical values. Mr. Johnson replied that is correct, really broad categories were used in this exhibit. Mr. Casserly said that the expenses were dictated by the State Auditors Office. The OSA has determined this is how they want the numbers reported. Chairperson Commers asked if the same hypothetical values were used in the estimated financing and issuance of bonds. Mr. Casserly replied that is correct. The reports requirements are to reflect the maximum amount of bonds that would be issued. If the maximum isn't reflected then the plan would have to be amended; this was done with a mathematical equation. Commissioner Backlund noted that in Paragraph C it talks about the costs to provide a tunnel under BNSF to access the Northstar commuter rail. He asked if this was referring to a second tunnel. Mr. Casserly answered that was the tunnel already constructed under the tracks at the Transit Station. At the time the tunnel was built, financial resources were not available to pay for that and this legislation allowed the Authority to use those funds. It didn't make sense to create a district at that time because of the economy. That is how the Authority afforded the property and paid for some of the expenses. It also allowed the Authority to create a larger district at an appropriate time. Mr. Casserly stated that this is not designed for a specific project. For example a developer comes in to tear down the building site and it isn't worth $5 sq. ft., it's only worth $2 a sq. ft. The HRA Meeting of May 2, 2013 5 developer needs help to make up the difference between the cost to acquire the site and what the square footage is worth. This is designed to assist with the overall infrastructure. Resources can also be used in this area to facilitate a more intense area through sidewalks, bypasses and overpasses. Many of the resources will not be like what has been used in the past for specific type of assistance; it will be used for more general use. As more specific projects come in a developer may want more intensive use for the site but has parking issues for example, this does not support parking but the Authority may decide to assist with structured parking. This plan is really very open and every dollar is under the control of the Authority. Chairperson Commers asked what exhibit 24E was intended to show. Mr. Casserly replied that this exhibit is telling the Authority that the tax rate would actually go up by those percentages if all development were to occur without the tax increment district. These are not really increases but lost opportunities if all development occurred without any investment. Chairperson Commers asked if with an investment there is an actual decrease in these districts. Mr. Johnson replied that the base is frozen; taxes are being paid on the original tax increment. This basically is saying if no investment or development happened on its own, this is the change that would happen to the tax rates. MOTION by Commissioner Gabel to approve TIF District #22, Northstar Station Transit District (TIF#22). Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 6. Approval of Resolution Adopting Addition of Phase IX 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 HRP. Parcels can be added by HRA Resolution, provided the parcels meet required criteria. Once in the program and new homes are constructed, the Authority is able to collect increment for 15 years on improvements. The plan is to get this home demolished and ready for sale in June. This is a highly desirable lot; it is 80' x 129' and a nice walk out lot. Staff recommends approval of Phase IX of the Housing Replacement Program. Commissioner Holm asked if the garage in the back would be demolished. Mr. Bolin was not sure; there is a builder interested in the property and he is not sure if they would like to keep garage. Either way they would build an attached garage too. Commissioner Holm noted that the alleyway is a dead end beyond this property; it may be abandoned at some point. Mr. Bolin agreed that could happen. MOTION by Commissioner Holm to adopt the resolution of the addition of Phase IX to HRP District#1.,,Seconded by Commissioner Eggert. HRA Meeting of May 2, 2013 6 UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS: 1. GWNE Project Update Paul Bolin, HRA Assistant Executive Director, stated that Dave McNutt has not had any luck attracting a retail anchor for the building he would like to construct on the former Sinclair site. The exclusive agreement he had with the Authority expires on April 30th. At this time, staff would not recommend extending his exclusive development agreement. Mr. McNutt would like to wait until Cub Foods is built as there is not a lot of demand for retail space this far up on University. Mr. McNutt would also prefer to be on the other side of University. Mr. Bolin stated that the Fridley Animal Hospital purchase agreement was signed and that property will close on May 30th. The Lyons / Trident Development (150 + units) is laying out design options to include FAH lot and 6071 lot. Architectural drawings will be available soon. 2. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, reported there was one RLF loan closed in April and one Remodel Advisor visit. Chairperson Commers asked what the interest rate was on the loans. Mr. Bolin replied 4.75% which may be a little high. The interest rate is tied to the state housing finance rate and is 1/4 % different from their rate. ADJOURNMENT: MOTION by Commissioner Gabel to Adjourn. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 8:05 P.M. Respectfully Submitted, /6.14-he /0-4A4dr\-- Krista Peterson, Recording Secretary May,2013 Fridley HRA Checking Accounts Payable Register Date Check# Vendor Invoice# Description Code Amount 4/25/2013 29500 APA-MN Seminar-Paul Bolin 100-0000-430-4337 85.00 85.00 4/25/2013 29507 Midwest Fence 147355 University Ave Fence Repair 100-0000-430-4346 2,250.00 2,250.00 4/22/2013 29509 Star Tribune 1000221133 Notice of Public Hearing-Land Sale 501-0000-430-4334 226.00 226.00 4/30/2013 29510 Sevenich,Butler,Gerlach,&Brazil 30113 Administrative Services-Greg Johnson 100-0000-430-4330 787.50 787.50 5/9/2013 29504 Monroe Moxness Berg 138701 Administrative Services-Jim Casserly 100-0000-430-4330,4606 1,054.00 100-0000-430-4330 6,578.65 7,632.65 5/7/2013 29508 CenterPoint Energy 9860585-0 4656 2nd St NE 501-0000-430-4338 2.68 2.68 5/14/2013 29511 Wilson Development 23187 Gateway NE-Lemay Animal Hospital Acq&Relo svc 474-0000-430-4330 1,217.60 1,217.60 5/15/2013 29503 Center for Energy&Environment 11519 Revolving Loan-5848 Washington St NE 265-0000-127-0000 10,483.00 Revolving Loan-5840 5th St NE 265-0000-127-0000 8,780.62 Loan Origination Fees 265-0000-430-4340 1,100.00 Remodel Advisor Visits-2 265-0000-430-4340 260.00 20,623.62 5/7/2013 29506 Liesch&Associates T407105 Housing Replacement-Abatement oversight 501-0000-430-4330 633.00 T407247 Housing Replacement-Asbestos/Haz Survey 501-0000-430-4330 1,613.20 2,246.20 5/28/2013 29505 Land Title Purchase Vet.Clinic- 5895 University Ave NE 474-0000-430-4520 529,421.42 529,421.42 Total May Invoices $ 564,492.67 1 of 1 Fridley Housing and Authori 1111 Redevelopment Authority HYF F CDLFY Action Item DATE: May 24, 2013 TO: Darin Nelson, Acting City Manager FROM: Paul Bolin, Acting HRA Director SUBJECT: Election of Officers Article V, Section 3 of the Authority's by-laws requires the Board of Commissioners to annually elect a Chair and Vice Chair. Below is a list of the commissioners and the length of their current appointments. Commissioner End of Term Larry Commers (Chair) June 2014 Stephen Eggert June 2015 Gordon Backlund June 2016 Bill Holm June 2017 Pat Gabel (Vice Chair) June 2018 Recommendation Staff recommends that the Authority elect a Chair and Vice Chair as required by the Authority's by-laws to serve through June 2014. n r1 ACTION ITEM HRA MEETING OF JUNE 6, 2013 QTY OF FRIDLEY Date: May 28, 2013 To: Darin Nelson, Acting City Manager From: Paul Bolin, Asst. Executive HRA Director Subject: Public Hearing - Sale of 5801 3rd Street NE - HRP/Gateway West Novak-Fleck Builders has submitted a lot reservation agreement to build en ew home on the lot located at 5801 3rd Street. The builder is custom designing the home for a ,,hr specific buyer and due to timing issues with HRA Meeting dates, has not yet finalized the building plans. It is anticipated that the home will have 4-5 bedrooms. e '''' : ".',.., N 1.. ,. -\\) i Novak-Fleck Builders have built 6 homes on Authority owned lots over the past year. ■ They have been extremely easy to.work with and deliver the product promised. Provided the home plan submitted meets the programs requirements, as expected, Staff recommends approval of the attached resolution, authorizing the sale of the 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 23-30-24-23-0154 5801 3rd Street NE 23-30-24-23-0155 Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted its 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 TIF District #18, Gateway West, 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$30,000. HRA Resolution 2013-_ Page 2 Section 4. Authorization for Execution and Delivery. 4.01. The Chairman, the Executive Director and Assistant Executive Director are hereby authorized to execute and deliver any documents necessary to effect the sale of the Property. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 6th DAY OF JUNE, 2013. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: PAUL BOLIN- ASSISTANT EXECUTIVE DIRECTOR ACTION ITEM I L''' HRA MEETING OF JUNE 6, 2013 c1TY OF FRIDLEY Date: May 2 8' 2 0 13 To: Darin Nelson, Acting City Manager From: Paul Bolin, Asst. Executive HRA Director Subject: Public Hearing - Sale of 5765 3rd Street NE - HRP/Gateway West Home Detail Builders has submitted a lot reservation agreement to build a new home on the lot located at 5765 3rd Street. The builder has custom designed the home for, and has an agreement with, a specific buyer. _.,, tpi, , L ',r �� `. ,, ., ,i1/4,. , , ,,, :,44m ., .. 3 !.. .. ,.. _ .. ..... . . . . .., ,.. . . „,..,. ., 1 1 No\f- i ., ... . .. , , The principals of Home Detail Builders are Jeff and Luke Magdik, the builders of the other homes previously constructed on this block. Home Detail plans to build a two- ^ level home with approximately 1,500 finished square feet. The home will have 4 finished bedrooms and 2 finished bathrooms. The exterior of the home will utilize a blend of maintenance free materials and will incorporate shakes and stone on the front of the home. The home is being designed to blend in with the existing homes found in the Gateway West project area. 11lltt r' 111111i1t1U ref$ YI\Yi11N\H�1I�111 U\UIl[II II\I6111It1 ✓ ��_..:xk ... '� t\Ilt\7FR11\I�ItI■llt�l11t�11f ... .�,_..,. .,,.,»n ,.,v.,..,.,,,., ,>,.o. .SAM ,_ _„s__,.,,a.. =...___ ._101\III\!1(111\Ifdl\11111 Ill\III\ Ir ■■ — ■■ ■■ ■■ —=--. . = �� .. .. �� ■ :,.. \ilttununu ��� i6\1ltOpuUpnll '°:� 11\1H11\Ildl\16111111\1 ==•.• I. """"'” I MI ==i 1 Ems r_ , __ II _ 1. .......k . ...1 =a _,.., _ __L ..... :...., :z... =........... ,.......„___, 7..a.,.. ._. = 12 =1=r.=_ ow _. _ ,Mll"aRII = ra....emnia---. IU I■ ■11.IN ■MI IN Staff recommends approval of the attached resolution, authorizing the sale of the lot to Home Detail 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 23-30-24-23-0156 5765 3rd Street NE •"■ Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted its 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 TIF District#18, Gateway West, 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. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 6th DAY OF JUNE, 2013. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: PAUL BOLIN- ASSISTANT EXECUTIVE DIRECTOR /'O link ACTION ITEM HRA MEETING OF JUNE 6, 2013 CITY OF FRIDLEY Date: May 28, 2013 To: Darin Nelson, Acting City Manager From: Paul Bolin, Asst. Executive HRA Director Subject: Public Hearing - Sale of 4656 2nd Street NE - HRP Boulder Contracting has submitted a lot reservation agreement to build a new home on the lot located at 4656 2nd Street. Boulder Contracting is custom designing the home '' for, and has an agreement with, a specific buyer. This is not being constructed J speculatively. ./ . ...:— ...:::;I:o , \,54-6, . . _ .,,,,,... , ..,. c,,,'' „ ,' $ -,..‘ , .. wr _ e 1 � 1 r � j . � � yyiiu ,i,,,'1 P d ,„, i LI141/C ,,a3A it.- 1 ,,',-`.'k •r. ,!' r This will be the third home that Boulder Contracting has built on an Authority owned lot in the past year. Boulder Contracting plans to build a modified split level with approximately 1,900 finished square feet of living space. The home will have 4 finished bedrooms and 2 finished bathrooms. The exterior of the home will utilize a blend of maintenance free materials and will incorporate shakes and stone on the front of the home. The home is being designed to complement the existing homes in this neighborhood. r dldhlhiIhndhll .!.1• /rrrrrrrrrrr�. ■■ rrrrrrrr ap hrr; i I. r•r�r■r■r�r r■r�r■r■ r h.h�h�����h i.r���h�`�h�h�h�.` • m •_ E1-�� - �.- ---���-�� - _1__7 1--.7f - : -�� _ II I =___• _ __._r_ __ _ _:—=lil-1- :7-_=i�=i__ r=T Staff recommends approval of the attached resolution, authorizing the sale of the lot to Boulder Contracting 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 26-30-24-33-0050 4656 2nd Street NE ,•••a Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted its 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 TIF District#18, Gateway West, 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. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 6th DAY OF JUNE, 2013. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: PAUL BOLIN- ASSISTANT EXECUTIVE DIRECTOR ACTION ITEM CITY OF HRA MEETING - JUNE 6, 2013 FRIDLEY Date: May 23, 2013 To: HRA Commissioners, Darin Nelson, Scott Hickok, Becky Kiernan, James Casserly, Greg Johnson From: Paul Bolin, Acting Executive HRA Director Subject: Term Sheet for TIF District#20 & HS Subdistrict#20A 4goo Hyde Development, a redevelopment group led by Paul Hyde and specializing in heavily polluted sites, has a closing date of June 30th for the 136 acres located at 4800 East River Road. Hyde Development has been working towards acquiring this property since August of 2011 and the Authority created TIF District#20 in the spring of 2012 to provide assistance with the clean up and future redevelopment of the BAE site. The 135 acre size of the site, the condition and age of the existing 2M square foot building, the contamination on the site, and the number of parties involved to move this project forward have made this the most complex project the Authority has assisted. The complexities of this redevelopment and the need for an Alternative Urban Area wide Review (AUAR) added nearly one year to the front end of this project. The last piece of the puzzle, needed to move this project forward, is agreement on the level of TIF assistance the Authority can provide. In order to move forward with the project, Hyde Development needs the assurance of assistance provided by the Authority adopting a "Term Sheet" that will become the basis for the redevelopment agreement between the Authority and Hyde Development. Because of the complexity of the project, we are making this information available one week earlier than the rest of the June 6th agenda packet. There are a number of attachments and bits of information accompanying this memorandum. I have labeled each of these attachments and will provide a summary of each, below. Attachment #1 - Term Sheet The term sheet is similar to a draft term sheet the Authority reviewed in May 2012. It simply outlines the redevelopment and public finance terms that will go in the redevelopment agreement between the Authority and Hyde Development. Page 2 of the Term Sheet describes, in detail, how upfront assistance ("grants") would be 1 provided by the Authority and reimbursed by the Hazardous Substance Subdistrict (HSS). The agreement also discusses pay-as-you-go assistance from the Redevelopment District and makes provisions for the issuance of Revenue Bonds and Notes. A map showing the Phasing of the development is also attached to the Term Sheet. Attachment#2 - Update Memo From Hyde Development This attachment is simply a memorandum from Hyde Development that summarizes the tasks that have been completed over the past two years and provides timeframes for the remaining tasks. This attachment also shows the investment Hyde Development has made to date and the investments that will be coming soon. Attachment#3 - Preliminary Budget for RAP & Implementation Draft of budget needed to develop and carry out the MPCA required Response Action Plan and the Extraordinary Development Costs for each Phase of the Development. These are the costs for those tasks that are eligible for TIF Assistance, through either the HSS or the Redevelopment District. There are nearly $12M in eligible costs identified in this budget. Attachment#4 - Sources & Uses of Redevelopment Funds This chart shows the anticipated redevelopment expenses and the sources to pay for those expenses. Mr. Hyde has shown a year by year breakdown by phase. (Mr. Hyde will be available on June 6th to provide more detail and answer question you might have on this chart.) Attachment #5 - BAE HSS TIF Analysis This memorandum from Jim Casserly and Greg Johnson provides more detailed information on the TIF generated by the HSS, the upfront money ("grants") provided to the developer (discussed on page 2, of attachment#1 - Term Sheet), and the reimbursement to the Authority. The memo provides examples of a slow build out time as well as a fast build out time. Attachment#6 - Summary of HRA Cash Balances Provides a breakdown of the cash balances the HRA is currently carrying. The Authority currently has more than $6.5M in redevelopment funds available from the General Fund and the Housing Revolving Loan Fund, with little restriction on their use. Questions?: We have arranged a special work session meeting for 6PM on Monday June 3rd, in the Council Conference Room. Staff, consultants, and the developer will be available to answer questions you may have on the term sheet. &Gt4 May 21, 2013 TERM SHEET Hyde Project This Term Sheet outlines the redevelopment and public finance terms of a Redevelopment Agreement between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota and Hyde Development LLC. Redeveloper: Hyde Development LLC and its permitted successors and assigns. Prior to the execution of a Redevelopment Contract, the Redeveloper will assign its interest to a new limited liability company (the"Land LLC"). Prior to the construction of any building the Land LLC will convey a portion of the Redevelopment Property to a new limited liability company that will own the building (the "Building LLC"). There will be a separate Building LLC for each building in each Phase of the Minimum Improvements. The majority interest in the Land LLC and each Building LLC will be held by Paul Hyde and one other party. City: City of Fridley, Minnesota Authority: Housing and Redevelopment Authority in and for the City of Fridley, Minnesota Redevelopment Property: Parcels: 27-30-24-13-0002, 27-30-24-42-0002, 27-30-24-43- 0002 Creation of TIF District: The Authority has recommended to the City and the City has approved a redevelopment tax increment financing district (the "Redevelopment TIF District") and a qualifying hazardous substance subdistrict (the "HSS") for the Redevelopment Property (collectively the "TIF Districts"). The TIF Districts include all of the Redevelopment Property. The Authority has requested Anoka County to certify the Redevelopment TIF District and will request certification of the HSS when there is compliance with the statutory requirements. Eminent Domain: The Authority shall not use eminent domain to acquire the Redevelopment Property. Eligible Costs: Eligible costs include all costs eligible for payment with tax increment under applicable law. • Tax Increment Financing: The Authority will provide the following tax increment financing to the Redeveloper, as set forth in greater detail below: 1. From the HSS the Authority will provide the following grants as defined below to the Redeveloper upon commencement of the respective Phase: Phase I Up to$1,000,000. Phase II Up to $1,000,000 but only after substantial completion of the Phase I Minimum Improvements. Phase III Up to $1,000,000 but only after substantial completion of the Phase H Minimum Improvements. Phase IV Up to $1,500,000 but only after substantial completion of the Phase Ill Minimum Improvements. (the "Grant" or"Grants") The Grants may only be used for investigation and implementation of a MPCA approved Development Response Action Plan provided for in the TIF Act (the "Grants"). Grants will be placed in escrow and paid in accordance with a disbursing agreement requiring lien waivers and sworn construction statements. Any recovery of expenses supported by the Grants from third parties will be made available for subsequent Phases. Grants from the HSS, exclusive of third party reimbursements, shall not exceed $4.5 M. HRA financing for the Grants will be through the use of HRA interfund loans to the HSS account and the principal balance plus unpaid interest of such loans shall not exceed $3.5 M. Any Grant that results in the balance exceeding $3.5 M shall be delayed and may only be made at the time and in the amount that does not exceed this$3.5 M requirement. 2 1-3 2. From the Redevelopment TIF District the Authority will issue a pay-as-you-go TI Revenue Note or Notes, payable solely from tax increment generated by the Redevelopment TIF District, to reimburse the Redeveloper for Eligible Costs. The Authority will issue a Note (or amend an existing Note) upon the issuance of a Certificate of Completion for the last building improvements in each Phase. Calculation of Assistance Needed: 1. Every six months, the Redeveloper will submit an itemization of Eligible Costs incurred to the Authority for certification. 2. Annually, the Redeveloper will submit a cumulative-to- date Sources and Uses and also a projected Sources and Uses through completion of the Project so that, prior to the issuance of a Note, the Authority can determine the level of assistance needed based on an agreed-upon Redeveloper internal rate of return (the "IRR") (see below). ■ ■ 3. By the earlier of December 31 of the first full assessment year following completion of the Project or December 31, 2023, (the "Reconciliation Date"), the Redeveloper will submit a Project Sources and Uses for a final accounting by the City and the Redeveloper of the level of assistance needed for the entire Project, using the IRR discussed further below. TI Revenue Bonds: The Authority may issue TI Revenue Bonds as follows: • Bonds will be either taxable or tax exempt as allowed by law in amounts that meet reasonable underwriting standards and upon terms then available in the public marketplace. • Bond proceeds may only be used to refund or replace Notes. • Bonds will be issued on a parity basis, will be payable only from tax increment and will not be a general obligation of the City, County, State or any other political subdivision. • Bonds may be issued with each Phase but only in the tax payable year in which that Phase has its completed market value. 3 1 • The Authority will cooperate with the Redeveloper in its efforts to use low interest EPA clean up loans by issuing Notes or Revenue Bonds to the purchaser or lender. • The Authority will cooperate with the Redeveloper in the selection of an underwriter in the event Revenue Bonds are issued. The Authority will consult with the Redeveloper regarding timing, terms and costs of issuance of any Revenue Bonds. TI Revenue Notes: The Authority will issue TI Revenue Note(s)with the following terms: • Principal amount will be determined and Notes issued upon certification of Eligible Costs in accordance with a schedule set forth in the Redevelopment Agreement to reimburse Eligible Costs incurred by the Redeveloper. • Term will be coterminous with duration of the TIF district. • Interest rate initially set at 5.5%, except that on the Reconciliation Date the rate shall be reset to the yield of 10-year Treasury Notes plus 2.0% (subject to a maximum of 6.5%). • 90% of available tax increment will be pledged. • The pledge of tax increment for the TI Revenue Notes will be subordinated to the pledge of tax increment for the TI Revenue Bonds and the Authority's administrative fee. • Any amounts unpaid at the maturity date of the TI Revenue Notes will be deemed paid in full. Priority of Application of Tax Increment: Available tax increment will be applied in the following priority: 1. Authority's administrative fee of 10% 2. TI Revenue Bonds 3. TI Revenue Notes Repayment of Assistance: On the Reconciliation Date, the Redeveloper must deliver to the Authority evidence of its annualized cumulative internal rate of return from the Redevelopment Property and Minimum Improvements (the "IRR"), calculated as of the Date of Reconciliation. The IRR shall be calculated with equity, revenues and expenses all determined in accordance with generally accepted accounting principles, provided that the amount of Redeveloper's 4 '~ equity must exclude any developer's fee in excess of 7.0 percent of total development costs. • Also included in the IRR calculation is the Eligible Costs paid by the Redeveloper and not reimbursed by grants, HSS Grants or Notes. • Developer's fee shall not exceed 7 percent of the total development costs. • The amount by which the IRR exceeds 12.0 percent is a percentage referred to as "Excess Percentage." The Excess Percentage, multiplied by Redeveloper's equity (as calculated for purposes of determining the IRR), is the "Participation Amount." 50 percent of the Participation Amount shall be credited to the reduction of the principal of the Notes in reverse order of their issuance as of the Reconciliation Date. Property sales prices: For purposes of calculating revenues for the IRR from sales of property: • If property (improved or unimproved) is sold to an unrelated party in an arm's length transaction, those prices will be determinative of the sales price. The Redeveloper will certify to the City that such party would be considered unrelated under applicable Internal Revenue Code regulations. • If property is sold to a related party(as defined in Internal Revenue Code regulations), the property sale price will be determined by agreement between the Authority and Redeveloper or, if agreement cannot be reached, the sale price will be the higher of an appraisal conducted by an appraiser mutually agreeable to the parties or the actual sale price. This provision is not applicable to a transfer between the Land LLC and a Building LLC. • For property still owned by the Redeveloper on the Reconciliation Date, an "imputed" sales price based on an appraisal, or other method acceptable to both parties for valuing the property or its rate of return, will be used. Construction Fund Admin- istration and Accounting: 5 l-'6 The Redeveloper will administer Project revenues and disbursements therefrom, subject to escrow agreements, disbursement agreements, grant agreements and further subject to trust instruments, etc. regarding the repayment of Bonds. The Redeveloper will deliver to the Authority semi- annual reports and also year-end compilation reports which have been prepared by a CPA and certified by the Redeveloper, with both types of reports to not be more limited in scope than the reports which are required to be submitted to its investors or lenders. Redeveloper Entity; Reconveyance/Assignment: The Redeveloper anticipates that it will create a Minnesota limited liability company ("LLC") to enter into a Redevelopment Agreement with the Authority and may have a separate entity for each separate development. Development Costs: Subject to reimbursement as Eligible Costs within the limitations set forth herein, the Redeveloper will pay for all environmental remediation, site preparation, public improvement, plat, plat amendment, PUD and other development costs. Redeveloper Public Improvements: Subject to reimbursement as Eligible Costs within the limitations set forth herein, the Redeveloper will construct and pay for the following Public Improvements in accordance with City specifications and subject to approval by the City engineer. The parties will coordinate the installation of the Public Improvements in order to accommodate the timetable for construction of the Minimum Improvements. Upon completion of the Public Improvements in compliance with City specifications and acceptance by the City, the Public Improvements will become public property. • Utility relocation • Burial of electricity, cable, telephone, natural gas • Sanitary sewer • Water mains and stubs • City streets (the amount of City contribution to the extent area-wide benefit is demonstrated will be set forth in the Redevelopment Agreement) • Traffic lights and sidewalks • Storm sewers and storm water system elements (ponds, pipes, infiltration system) both on and off site 6 1-7 • Underground utilities Site Improvements: Subject to reimbursement as Eligible Costs within the limitations set forth herein, the Redeveloper will construct and pay for all site improvements, including: • Building demolition • Relocation • Environmental remediation • Site clearance • Landscaping and screening according to City-approved landscape plans • Trails and other pedestrian improvements pursuant to City-approved site plans (if such improvements are privately owned; if public, they will be treated as Public Improvements) • Grading and import/export of soil in accordance with City- approved grading plans • Retaining walls and fences • Private streets, including curb and gutter • Park improvements, according to any City requirements �—� Minimum Improvements: The Redeveloper will construct or cause to be constructed the following Minimum Improvements to the Redevelopment Property as shown on the Site Concept Plan attached. The product mix and numbers of square feet shown above are estimates and subject to change as necessary to comply with City Council, Planning Commission requirements or the approved Development Response Action Plan ("DRAP"). Phasing: Phase I 364,860 square feet Phase II 364,860 square feet Phase III 360,100 square feet Phase IV 364,860 square feet Assessment Agreements: At the Authority's option, the Redeveloper will execute assessment agreements reflecting market values that are acceptable to the Authority and the Redeveloper. Interest: Interest paid to unrelated third parties that financed Eligible Costs may also be included for reimbursement from HSS Grants and Notes. Grants: The Redeveloper and Authority will cooperate and use their best efforts to seek grants from the State of Minnesota, Metropolitan Council, DEED, Anoka County, Department of 7 1-8 Navy, EPA or other available public funds. Subject to reimbursement as Eligible Costs within the limitations set forth herein and except as allowed by the HSS Grants, the Redeveloper will advance costs that were expected to be defrayed by grants that are not received. Government Approvals: The Redeveloper and Authority will cooperate and use their best efforts to obtain all necessary government approvals. Permits/Fees: The Redeveloper will comply with all applicable City building codes and construction requirements. The Redeveloper will pay normal permit, plan review, utility access and park dedication fees and will be responsible for obtaining all building, plumbing, electrical and mechanical permits prior to construction. Zoning and Land Use Approvals/Easements: Normal and customary site and building plan review requirements will be followed. The Redeveloper will pay for rezoning, subdivision, platting, plat amendment, PUD and preparation of restrictive covenants, easements, reciprocal easements, and any other documentation necessary for the construction and sale of the Minimum Improvements. The Redeveloper will be responsible for obtaining all land use and zoning approvals. Special Assessments: The Redevelopment Agreement will specify the amount and purpose, if any, of special assessments to be levied against the Redevelopment Property. Park Dedication Fee/ Public Open Space Contrib.: As of the date of this Term Sheet, no park dedication fees or land contribution is owing as a result of this Project. Business Subsidy Act: Except for reporting requirements, the Project is exempt from the application of the Business Subsidy Act. Relocation of Tenants: The Redeveloper will provide relocation services and benefits for all eligible tenants of the Redevelopment Property. The Redeveloper may, in lieu of funding such services and benefits for a tenant, provide a written waiver by that tenant. Such waiver must be in a form acceptable to the Authority. The Redeveloper will indemnify the City and the Authority for any relocation liabilities arising under 8 1_1 applicable law with respect to any portion of the Redevelopment Property. Prohibition on Tax Exemption: Once acquired by the Redeveloper, the Redevelopment Property and Minimum Improvements will not become exempt from ad valorem property taxes until termination of the TIF District. This covenant will be contained in a declaration of restrictive covenants to be signed by the Redeveloper and recorded against the Redevelopment Property. Effect of Term Sheet: This Term Sheet outlines the terms under which the parties are willing to enter into a Redevelopment Agreement, but does not constitute an offer or acceptance on either party's part. All rights and obligations with respect to the Redevelopment Property will only be as provided for in a Redevelopment Agreement approved by the Authority and the Redeveloper. 9 Dated: , 2013 HOUSING AND REDEVELOPMENT AUTHORITY By Its President By Its Executive Director Dated: , 2013 r-� By MMB:4851-8987-3678,V. 5 10 ) ) ) . 6 OPUS. Phase 2 Phases 3 and 4(Existing Building) 1 Phase 1As 2015-2017 < 2017 and Beyond > I 2014-2015c -I+I:aai444f 111.111 .1 ..I\:'It'•..ii • •Itl •• "11141•'.'l■o-1 •••11•/•• "Itti.V-1 11.1'1'.I"..t-111...1:.., "f.:.' :.:':"•'lll.••,•:1"':II---F+H-:---lfll!' I...f....l..':..... ..i. Y .I '•■ il-.•:ilf:ll:■.11i':.'l .....I:.,1. ._ N.P.RAILWAY CO. — � Q �� ( i r11' .� - � kvK I s' } o '_-r E P 'Ik .l l ra-rr (�? I I L. 5-,-. I( \I r a �, {is s ' la o- i r� „L.� I v } r � �I lLit I ;� aj �( I I I ' 9t r j�iL. =I n I •,�,�� °5� ll '� a+2t r �u,��55.?�' s s j.„, 11 {I.; s 1 Ft,YSI^I 31 KS 1 q' 4J n� 1js)gn. a fuc19. 1 Yi1 i; I m • ( y �. Fr4 t gr e i 2oDpOLY � i!. t..11,1::1�5� ?= i5' J fl x �.{s qq' Y{ 7r,t�1.�gVFE+ .� ,s� ul1y.{.(c� ;:::L s. ,•{_ I G1 � r�r''� Y i afl ��' 9 I I ii� e`S 1� �'t'r£,7Mjy ��:�: F '� i I — £IS+ ` `F f{yl k r T 1 rte' r` ii, {11 '', 1 �_ 1 4e�l? `tsii(% �' '•I 1 = ,. ; j s-• �r 0a.W, F _ TIRI 1 1 _ _ � .{T j ,*1 A + . sip k , °1 I CiNHHHHHIHINiIHHIH IHIiHHfHHHHIIIHIHHiHIHHHNI '-f _ r` ;r " ; ?� �'r Aft _M I _ E. "I� g r,r�E ,fit _ 'I L Q IIIHNIHIIHHHHHINHIHNHHNHHIHHHNH♦NHHIiID 1 s_ {IiI �I' ``l�' 'n' E J _ "(h lvi�"s t .'8 t` • gg - 4_n.,.j•ar.l if�'Y` t'a lli -= I - .� F i lt'Ir.Z:I. �__ luulruuuuun•ruuf VI 1 '„ p h4ke�▪ I# t '�k + ?' iq Mia : ( i�S ve { k I t I r;;_'S',a..1, S'� }.!t ='_- I'I s { m 1 40-1!r, t t. ' — i ` �lif+ F ' #pi.d7 ou I {11.owi.. Gl ,1,°' '1 1= I i r � r j' I,�T,i ul o �o'}�T! 2�'LL 1♦zugg6 'h Se 1 �' IJM"'',j I I `' F ` ,j r I L 1 ,, T.._ ,- 4 F75} v{i 7 ; I _ i 5,s��'�; �; �:7.;. I AIbi. dm 4' 5 1 p+�'`Ygi t• f..0.o.p! u5 •'--', .sal_ 1I Q -_I _ -_}tom^ �l !ii1 M1. qa0 t r 'u I=11. f e n ` I v C'J FPS j I t ot .==1 4 1i-• 1 A, SEE* :.; :F '"T''! S t I�SxIR ed r 441eLs��AC' 1 1 K 1 s=I sm �l l yj 1. 911g& Y7 I s _ {+Iti. 7r1..S1.a..Flw..•x. 14. I"v..".'�y�'i I �� II i 11 R Y .� = ' _Jluunnununnuuurnmm�annnmm�nwRl �. — x �Ir itt eK u' _ I Ill ' ,: F s UI 1 I 1 fU :inv.. '6 x I' Si �' I — 1 lRwuunnuumuunwwwumwmnum / .\ i mw y = rNlN11 1 S 4/ S�� 0950110 901.251C100 11/ 1160T1C CONTROLS S: ) :, "4,,, , l yll a i Il' 11 Arig, I. I e x tr. dr. •S Y{�'' I * RELI0.I DEG'EIOMT. S{} 1 N. 9 elnolrc rn[ sn n.{r yF. `V''4y ` orncs/rAmaus[ I 000 lax uN04RISE 000 e , _S DP,�/sxmnSDal 12sao na "° 6 OPUS, 1 g 7. ,,,...TI E Z r*+�.L, I� il`d� POa 1D7µ 1,392,000 j 21]2 LLG DEW=902199:0029I REAL ESTATE 1 _) RECYCLING . sr 1.e. AP P222.2910 t 101119 CORMS e ^rsSel5REPUr r-,a-r i1fi1� �•• �./ SEAL 1•.107-0• MASTER SITE PLAN �..+ Al T • 11111 tR P....�>nt-us. d A1+6 LWIQ.v'4* James Casserly From: Paul Hyde [paul©hyde-dev.com] Sent: Thursday, May 16, 2013 12:05 PM To: James Casserly Subject: Fridley Update Jim- As we continue our work on the redevelopment of the Former BAE site In Fridley,we have come a long way aver the past 2 years I Allow me to summarize what we have accomplished as well as our financial commitment to the project. Environmental and Infrastructure Prepared a comprehensive Phase I for the Site,including an overview of all the work done to date by Navy and BAE Developed a Budget for demolition of the existing building,redevelopment of the site and modification of existing groundwater system to fit our development plans Developer a Budget for new infrastructure required for the redevelopment Secured MPCA and US EPA agreement on MPCA Voluntary Cleanup Unit having jurisdiction over our redevelopment Begun process for de-listing site soils form State and Federal Superfund List Negotiating Agreement with US Navy on how we interface with them on our proposed redevelopment -Navy Approval of Our Proposed Redevelopment(required by existing deed restriction) -Framework for our working with Navy on relocating ground water wells for our redevelopment -Clarifying Navy still liable for existing source areas(Plating Shop)and continued operation of groundwater system Environmental Review Learned 12 mos.Ago required by City and MPCA Draft AUAR scoping document completed,public comments received Final AUAR issued, final public comments received Financing Secured bank loan commitments for acquisition loan Marketing Developed a phased site plan that allows development of the site while BAE lease continues through Dec 2015 Interviewed listing brokers Marketing of Site to Begin mid-June Construction Interviewed qualified contractors,selected Mortenson Interviewing architects June 5,selection of architect mid June Investment To date invested$250,000 of our own capital in AUAR, Envt'I,Legal and Architecture/Civil design Will Purchase Land end of June for$13.5 million Will develop 1.6 million sf of new buildings totaling$96 million Will personally guaranty all construction loans We have come a long way and appreciate your help in getting us to the end point on this exciting project I 1 ._ .._.__.. Ailet c.V.pv,eKi *5- _ 3-'1 Preliminary Budget for Fridley Business Park Response Action Planning and Implementation A. Environmental Review and Response Action Planning 1. Phase I Environmental Site Assessment ESA) 2. Site-Wide Environmental Review(AUAR) , 3. Agency Planning/Negotiation/Cleanup Standards/Agreements 4. Data Presentation/Site-Wide Response Action Plan(RAP) 5. Quality Assurance Project Plan(QAPP) 6. Groundwater/Surface Water Interaction Assessment Total Costs for A Tasks $125,000.00 B. Phased Extraordinary Development Cost Items rTask Phase I Phase II Phase III Phase IV Total Taslc$ Field Sampling 20,000 10,000 25,000 25,000 80,000 ' Plan RI/Phase RAP 135,000 - 125,000 110,000 - 110,000 480,000 RAP Implem. Contractor 80,000 80,000 100,000 100,000 360,000 General Cond. Regulated Waste 5,000 0 250,000 250,000 505,000 Abatement . Demolition 50,000 60,000 2,250,000 2,250,000 4,610,000 Debris Disposal 70,000 70,000 0 0 140,000 Asbestos 125,000 0 0 0 125,000 Contam.Soil Petroleum Contaminated Soil Off-Site 42,000 0 100,000 100,000 242,000 Disposal - - - - - On Site 20,000 0 100,000 100,000 220,000 Management TCE Contaminated 45,000 300,000 150,000 100,000 595,000 Soil On-Site - Utilities I Re-Design 20,000 5,000 0 0 25,000 Re-locate 40,000 20,000 0 0 60,000 Abandon Old 15,000 5,000 0 0 20,000 Utility line - n Contaminated Soil Associated 25,000 0 100,000 100,000 225,000 with Utilities Stormwater 70,000 250,000 250,000 0 570,000 Pond Liner Vapor Barrier 360,000 550,000 540,000 725,000 2,175,000 System Temporary Site 20,000 20,000 30,000 20,000 90,000 Stabilization Temporary 10,000 10,000 20,000 0 40,000 Storm Sewer Groundwater System 50,000 0 300,000 0 350,000 Construction _ Engineering Plans & Specifications 30,000 20,000 150,000 30,000 230,000 for RAPS Field Testing, Oversight, 100,000 100,000 150,000 150,000 500,000 Mgmt RAP Reporting 30,000 30,000 _ 40,000 30,000 130,000 / .■ Total B Tasks 1,362,000 I 1,655,000 I 4,665,000 I 4,090,000 I 11,772,000 Total A&B Tasks $11,897,000.00 Assumptions and Notes • Costs are in 2013 dollars • It has been assumed that 215,000 square feet of pond liner will be required which is a conservative# • Certain Tasks within a Phase may require initiation in a prior Phase • It is assumed that the civil related work for each phase will occur concurrently with the environmental work as much as possible. The civil work includes utilities,grading and construction of building pads. • The TCE Soil Costs in Phase II may be mostly a Civil Cost • The utility costs in Phase II are to re-locate the water main and may actually be a Civil Cost • Abatement costs are budget level costs and require regulated waste survey with destructive sampling to refine the cost estimate. • Demolition costs are estimates and require detailed bidding and will be a function of scrap metal prices at the time that demolition is initiated. 3 -3 • Cost estimates for soil correction are based on assumed volumes of soil that will be encountered and the unit rates that were used are based on recent costs for similar soil remediation projects. • No utility corridors are planned at this time • RI for Phase III and IV will occur concurrently with Demolition using backhoes on-site for demo. • It has been assumed that green space areas in the new development do not require sampling and analysis and do not require any soil response actions • It has been assumed that the utilities below the floor of the existing building will not contain contaminated liquids and will be abandoned through removal during the building demolition. • No Surveying costs have been included. • N utility corridoors have been explicityly included in this cost estimate • No clean soil import has been included in this cos estimate • It has been assumed that all soils will be geotechnically sound for re-use on site. There may be some organic soils on-site tha require correction,however. - // %.So.A..4e s � zs A cL,wines.* **z( 8 N C G. C N 8880 8880 00 _ oa a n g m o .R.n °o m m U1?2"T 'q N NN N N VF N N N N an.,hN N NN Va.N N NN O O O 0 1• . 0 0 •, ' 8 p O m C °o m $ $ 8 ti N T 1.1 ..-I N I+i .. o N N N N N N Y N N N N N N N VI Q Oa $ $ o • 8880 fig0o Ns $ 8 8 g g O o ,.i , a o o .-i.i e N N N NN CO 1p?N N N N N N 8 .A ....nap asl m O m H N N N N N N N N N N N N 08§ 0 § 4§ § 5 0o ° Y Q °8 °yN� „ ci O N 0 i N p N N N.- Y. T O 34 N n N t L ! 6 N N N N N N Y l(lb N N an. §888 ' O�S O O O ci p 0fNiN O m piNN I 01 . N Q ti N N N N Y -N N N NN N N N N N NfN?v)-CO N N • — O b O na N (4 N N NN*O.,N O NN CY -iil p 8 N Y n O y N . • § . p 8 O O M SN N N N N NS Npp Npp N N N O O 88O G O ' O 8 O O O • '4' ,98 , I p N O O I, n N .ti M i-H.4 1.. N N N N N N N N N N N en NM O N (lb 4RN N NNNN N N N 8 L O . -N .1 •1 $G N 8 Q N O O 8 N •m u N N N U 44 NN N a NNN 1R NN 2 $ • $ 0 g88g . $ LL - gg en 8 N ...i T . en N N N-CO N N N N N N C Y Y 6 o t '� O a N O ry •'Li. 3 U W 'a t ` O r Y ` Y p y cu C tD j } 6 O W N } v. 2 I- 0 LO- 0 Ira 21+.1 At- 5 S.( MONROE 8000 Norman Center Drive T 952.885.5999 ••••\ M9XNESS Suite 1000 F 952.885.5969 Minneapolis,MN 55437-1178 www.MMBLawFirm.com BERG James R.Casserly jcasserly@mmblawfirm.com Direct 952.885.1296 MEMORANDUM To: City of Fridley Attn: Paul Bolin, HRA Assistant Executive Director Attn: Scott Hickok, Community Development Director From: Monroe Moxness Berg PA Attn: James R. Casserly, Esq. Sevenich, Butler, Gerlach & Brazil, Ltd. Attn: Greg D. Johnson, CPA Date: May 22, 2013 Re: BAE Site HSS Tax Increment Analysis Our File No. 9571-77 The HRA created Tax Increment District No. 20 last year to assist with the development of the BAE Site by Hyde Development LLC previously Real Estate Recycling (the "Redeveloper"). A Hazardous Substance Subdistrict(the "HSS") was also approved, but certification of the HSS is delayed until a Development Response Action Plan (the "DRAP") is approved by the MPCA for the site. The Redeveloper is asking the HRA to provide $4.5 million in grants to the project over a period of 5-10 years to pay for remedial actions described in the DRAP. The HRA would be reimbursed for these grants from tax increment generated by the HSS. The attached three page report summarizes the tax increment generated by the HSS, the grants to the Redeveloper, and the reimbursement to the HRA: Page HSS Cash Flow& Present Value Analysis (Tax Increment Projections) 1 CS-K( Slow Buildout- Grants to Redeveloper every 3 years 2 (5's Fast Buildout- Grants to Redeveloper every 18 months 3 (-S"L) Page 1 — Hazardous Substance Subdistrict (HSS) — This schedule shows the tax increment generated by the HSS. The individual columns are described here in more detail. (a)Tax increment from the HSS can be collected over a 26 year period. (b) In a HSS, tax increment is collected on the current base values in the TIF district. The Original Tax Capacity is therefore 0. • • (c) The Estimated Tax capacity is based on the current base value of $14,228,700 multiplied by the commercial class rate of 2.0%. Because the base market value cannot change, no inflation is shown. (d)The Captured Tax Capacity shown in Column (d) is the result of subtracting column (c)from (b). (e) Column (e) shows the semi-annual tax increment generated in the HSS. For projection purposes only, we are using a tax rate of 1.07407. This is the average tax rate over the past five years. The current frozen tax for TIF #20 of 1.29928 is higher than we expect future rates to be. Increasing market values in the City and recent legislation lead us to believe rates will be lower in upcoming years. Total projected tax increment shown at the bottom of column (e)is $7.9M. (f) Column (f) shows the amounts set aside for both HRA admin fees and a debt service reserve. We are recommending a reserve to minimize any impact of future tax increment being less than projected. (g)The Available Tax Increment in columns (g) and (h) shows the amounts available to reimburse the HRA for grants given to the Redeveloper for the remediation costs. Page 2 — (Slow Buildout) and Page 3 — (Fast Buildout) — The Redeveloper is requesting site remediation grants of $1.0M for each of the first three phases, and $1.5M for the fourth phase. The HRA will make an interfund loan from its unrestricted general funds to the HSS. The HSS will then make the grants. As tax increment revenues are received by the HSS, it will repay the HRA general fund with interest. Pages 2 and 3 are really amortization schedules. The columns are the same for both pages and are as follows: (a) Dates at six month intervals (b) - (e) Amount of grants (and loans from the HRA to the HSS) (f) Tax increment receipts which is taken from column (e) on page 1 (g)Amounts set aside for admin/reserve (h) Interest owed (i) Outstanding balance Page 2 shows the grants to the developer occurring every three years. Page 3 shows the grants occurring every 18 months. We expect the first Phase 1 grant of $1.OM to 2 6-3 occur this year. Subsequent grant dates will occur after substantial completion of each phase. JRC/rl Attachments MMB:4837-7542-3508,v 1 3 5--`f . CITY OF FRIDLEY /Page 1 BAE Site-TIF//20 Entire Site rt CASH FLOW AND PRESENT VALUE ANALYSIS-Hazardous Substance Subdistrict I <---- ANNUAL --•-> <----- -- SEMI-ANNUAL.---- --> (a) (b) (c) (d) (e) (1) (9) (h) Original Estimated Captured Estimated Less: Available Cumulative Tax Tax Tax Tax Admin/Reserve Tax Avail.Tax C Date Capacity_ Ca•acit Ca.acit Increment Fees Increment_ Increment (see assumptions) (c)-(b) (d)x (e)x (e)-(f) Total of(g) III_ 0.0%Inflation (prey.year) 1.07407 ! 12.50% 06/01/13 0 284,574 0 0 0 0 12/01/13 0 284,574 0 0 0 0 1 06/01/14 0 284,574 284,574 152,826 19,103 133,723 , 133,723 12/01/14 0 284,574 284,574 152,826 19,103 133,723 267,446 2 06/01/15 0 284,574 284,574 152,826 19,103 133,723 401,169 12/01/15 0 _ 284,574 284,574 152,826 19,103 133,723 534,892 3 06/01/16 0 284,574 284574 152.826 19,103 133,723 668,615 12/01/16 0 284,574 284,574 152,826 19,103 133,723 802,338 4 06/01/17 0 284,574 284,574 152,826 19,103 133,723 936,060 12/01/17 0 284,574 284,574 152,826 19,103 133,723 1,069,783 5 06/01/18 0 284.574 284,574 _ 152,826 19,103 133,723 1,203,506 12/01/18 . 0 284,574 284,574 152,826 19,103 133,723 1,337,229 6 06/01/19 0 284,574 284,574 152,826 19,103 133,723 1,470,952 12/01/19 0 284,574 I 284,574 152,826 19,103 133,723 1,604,675 7 06/01/20 0 284,574 284,574 152,826 19,103 133,723 1,738,398 12/01/20 0 284,574 284,574 _ 152,826 19,103 133,723 1,872,121 8 06/01/21 0 284,574 284,574 152,826 19 103 133,723 2,005,844 12/01/21 0 284,574 284,574 152,826 19,103 133,723 2,139,567 9 06/01/22' 0 284,574 284,574 152,826 19,103 133,723 2,273,290 12/01/22 0 284,574 284,574 152,826 19,103 133,723 2,407,013 10 06/01/23 0 284,574 284,574 152,826 19,103 133,723 2,540,736 12/01/23 0 284,574 284,574 152,826 19,103 133,723 2,674,458 11 06/01/24 0 284,574 284,574 152,826 19,103 133,723 2,808,181 12/01/24 0 284,574 284,574 152,826 19,103 133,723 2,941,904 12 06/01/25 0 284,574 284,574 152,826 19,103 133,723 3,075,627 12/01/25 0 284,574 284,574 152,826 19,103 133,723 3,209,350 "'''''. 13 06/01/26 0 284,574 284,574 152,826 19,103 133,723 3,343,073 12/01/26 0 284,574 284,574 152,826 19,103 133,723 3,476,796 14 06/01/27 0 284,574 284,574 152,826 19,103 133,723 3,610,519 12/01/27 0 284,574 284,574 152,826 19,103 133,723 3,744,242 15 06/01/28 0 284,574 284,574 152,826 19,103 133,723 3,877,965 12/01/28 0 284,574 284,574 152,826 19,103 133,723 4,011,688 16 06/01/29 0 , 284,574 284,574 152,826 19,103 133,723 4,145,411 12/01/29 0 284,574 284,574 152,826 19,103 133,723 4,279,134 17 06/01/30 0 284,574 284,574 152,826 19,103 133,723 4,412,856 12/01/30 0 284,574 284,574 152,826 19,103 133,723 4,546,579 18 06/01/31 0 284,574 284,574 152,826 19,103 133,723 4,680,302 12/01/31 0 284,574 284,574 152,826 19,103 133,723 4,814,025 19 06/01/32 0 284,574 284,574 152,826 19,103 133,723 4,947,748 12/01/32 0 284,574 284,574 152,826 19,103 133,723 5,081,471 20 06/01/33 0 284,574 284,574 152,826 19,103 133,723 5,215,194 12/01/33 0 284,574 284,574 152,826 19,103 133,723 5,348,917 21 06/01/34 0 284,574 284,574 152,826 19,103 133,723 5,482,640 12/01/34 0 284,574 284,574 152,826 19,103 133,723 5,616,363 22 06/01/35 0 284,574 284,574 152,826 19,103 133,723 5,750,086 12/01/35 0 284,574 284,574 152,826 19,103 133,723 5,883,809 23 08/01/36 0 284,574 284,574 152,826 19,103 133,723 6,017,532 12/01/36 0 284,574 284,574 152,826 19,103 133,723 6,151,254 24 06/01/37 0 284,574 284,574 152,826 19,103 133,723 . 6,284,977 12/01/37 0 284,574 284,574 152,826 19,103 133,723 6,418,700 25 06/01/38 0 284,574 284,574 152,826 19,103 133,723 6,552,423 12/01/38 0 284,574 284574 152,826 19,103 133,723 6,686,146 26 06/01/39 0 284,574 152,826 19,103 133,723 6,819,869 12/01/39 0 284,574 152,826 19,103 133,723 6,953,592 -- 6,953,592 6,953,592 6,953,592 6 953,592 1 7,946,962 993,370 6,953,592 6,953,592 ,„,..\ BAE Site 2013a xisx Prepared by Sevenich,Butler,Gerlach&Brazil,Ltd. 5/22/2013 'ss CITY OF FRIDLEY -age 2 \ /..� BAE Site-TIF#20 ..` Entire Site Hazardous Substance Subdistrict-Cash Flows-SLOW BUILDOUT 1,000,000 1 000,000 ' 1,000,000 1 500,000 1.07407 12.50% 3.50% RER RER RER RER HSS HSS Interest Dale Draw of Draw of Draw of Draw of Tax on Unrecovered HSS Funds HSS Funds HSS Funds HSS Funds Increment Reserve/ Unrecovered HSS Funds Phase 1 Phase 2 Phase 3 Phase 4 Receipts Admin Fees HSS Funds 06/01/13 ---, 12/01/13 1 000,000 0 0 -' 1 000 000 1 06/01/14 = 152,826) 19,103 17,500 II 883,777 12/01/14 152,826 19 103 15,466 765 520 2 06/01/15 152,826 19,103 13,397 1 645,194 12/01/15 152 826 19,103 11,291 522 762 3 06/01/16 152,826 19,103 9,148 398 187 12/01/16 1000,000 152,826 19,103 6,968 1,271,433 4 06/01/17 11111= 152,826 19,103 22,250 1 1159,960 12/01/17 152,826 19 103 20 299 1 1 046 536 5 06/01/18 152,826 19,103 18 314 931 128 12/01/18 152,826 19,103 16,295 1 813 699 6 06/01/19 152,826 19,103 14 240 694,216 12/01/19 1,000,0001__ 19,103 12,1491 1 572 642 7 06/01/20 19,103 27,521 1 1,466,440 12/01/20 152,826 19103 25,663 1,358380 8 06/01/21 152,826 19,103 23,772 1,248 429 12/01/21 152 826 19 103 21 848 1 136 554 9 06/01/22 _(152,826) 19,103 19,890 1,022,720 12/01/22 MI= 1,500,000 ' 152,826 19103 17 898 2,406,895 10 06/01/23 152 826 19 103 42,121 2 315 293 12/01/23 152,826 19103 40,518 2 222 087 11 06/01/24 152;826 19 103 38,887 2,127 251 12/01/24 ' W Eal 19,103 37,227 2 030,755 �� 12 06/01/25 19,103 35 538 1,932 570 12/01/25 152,826 19,103 33 820 1 832,667 ti 13 06/01/26 152,826 19103 32,072 1,731,016 12/01/26 152,826 19,103 30,293 1 1,627,586 14 06/01/27 152,826 19,103 28,483 1,522,346 12/01/27 152,826 19 103 26,641 1 415,264 15 06/01/28 152,826 19,103 24,767 1,306,308 '12/01/28 152,826) 19,103 22,8601 1,195446 16 06/01/29 152,826 19 103 20 920 1 1 082 643 12/01/29 152,826 19 103 18,946 1 967,866 17 06/01/30 152,826 19,103 16,938 , 851,081 12/01/30 IIM 152,826 19 103 14,894 732 252 1.8 06/01/31 152,826 19,103 12,814 611,344 12/01/31 152,826 19103 10 699 j 488 319 19 06/01/32 152,826 19 103 8,546 363 142 12/01/32 152,826 19,103 _ 6,355 235,774 20 06/01/33 (152,826) 19103 4,126 � 106,177 12/01/33 (123,469) 15,434 1,858 0 21 06/01/34 0 0 0 0 12/01/34 0 0 0 0 22 06/01/35 0 0 0 0 12/ / 0 0 0 0 23 016/0101/35 -36 0 0 0 0 12/01/36 0 0 0 0 24 06/01/37 0 0 0 0 12/01/37 0 0 0 0 25 06/01/36 0 0 0 0 _ _12/01/38 ��� 0 0 0 0 26 06/01/39 0 0 0 I 0 12/01/39 0 0 0 0 -- -- 0 0 1,000,000 1 000 000 1 000 000 1,500 000 6,083,690 760,461 823,229 0 t*-■ BAE Site 2013a.xlsx Prepared by Sevenich,Butler,Gerlach&Brazil,Ltd. 5/22/2013 {'"'(0 CITY OF FRIDLEY -Page 3) BAE Site-TIF#20 _ Entire Site Hazardous Substance Subdistrict-Cash Flows-FAST BUILDOUT (a) (b) (c) (d) (e) (1) (9) (h) (I) 1,000,000_ 1,000,000 1,000,000 1,500,000, 1.07407 12.50% 3.50% RER RER RER RER HSS HSS Interest _ _'__ Date Draw of Draw of Draw of Draw of Tax on Unrecovered_ HSS Funds HSS Funds HSS Funds HSS Funds Increment Reserve/ Unrecovered HSS Funds Phase 1 Phase 2 Phase 3 Phase 4 Receipts Admin Fees HSS Funds 06/01/13 _ 12/01/13 1,000,000 0 0 1,000,000 1 06/01/14 (152,826)_ 19,103 17,500 883,777 12/01/14 (152,8261 19,103 15,466 765,520 2 06/01/15 1,000,000 (152,826) 19,103 13,397 1,645,194 12/01/15 _ (152,8261 19,103 28,791 1,540,262 3 06/01/16 . (152,826), 19,103 26,955 1,433,494 12/01/16 1,000,000 (152,8261 19,103 25,086 2,324,857 4 06/01/17 (152,8261 19,103 40,685 2,231,819 12/01/17 _ __. (152,826) 19,103 39,057 2,137,153 5 06/01/18 1,500,000 (152,8261 19,103 37,400 3,540,830 12/01/18 (152,8261 19,103 61,965 3,469,072 6 06/01/19 (152,8261 19,103 60,709 3,396,057 12/01/19 (152,8261 19,103 59,431 3,321,766 7 06/01/20 _. _ (152,826) 19,103 _ 58,131 3,246,173 12/01/20 (152,8261 19,103 56,808 3,169,259 8 06/01/21 (152,826) 19,103 55,462 3,090,998 12/01/21 _ (152,826)._ 19,103 54,092 3,011,367 9 06/01/22 (152,8261 19,103 52,699 2,930,343 12/01/22 I (152,8261 19,103 51,281 2,847,901 10 06/01/23 _- ■ (152,826) 19,103 49,838 2,764,017 12/01/23 I (152,826) 19,103 48,370 2,678,664 11 06/01/24 (1528261 19,103 46,877 2,591,818 12/01/24 (152,826), 19,103 45,357 2,503,452 12 06/01/25 r (152,8261 19,103 43,810 2,413,539 12/01/25 (152,826) 19,103 42,237 2,322,053 ./"■ 13 06/01/26 (152,8261 19,103 40,636 2,228,966 12/01/26 (152,8261 19,103 39,007 2,134,250 14 06/01/27 (152,8261 19,103 37,349 2,037,877 12/01/27 052,8261 19,103 35,663 1,939,816 15 06/01/28 _ (152.826) 19,103. 33,947 1,840,040 12/01/28 (152,8261 19,103 32,201 1,738,518 16 06/01/29 _ (152,8261 19,103 30,424 1,635,219 12/01/29 (152,826) 19,103 28,616 1,530,113 17 06/01/30 (152,8261 19,103 26,777 1,423,167 12/01/30 (152,8261 19,103 _ 24,905 1,314,349 18 06/01/31 (152,826) 19,103 23,001 1,203,627 12/01/31 (152,826 19,103 21,063 1,090,968 19 06/01/32 . _ (152,8261 19,103_ 19,092 976,337 12/01/32 (152,826)' 19,103 17,086 859,700 20 06/01/33 (1528261 19,103 15,045 741,022_ 12/01/33 (152,826) 19,103 12,968 620,267 21 06/01/34 (152,826) 19,103 10,855 497,398 12/01/34 (152,6261 19,103 ' 8,704 372,380 22 06/01/35 (152,8261 19,103_ 6,517 245,174 12/01/35 (152,826) 19,103 4,291 115,741 23 06/01/36 _.__. 04;59i). 16,824 2,025 0 12/01/36 0 0 0 0 24 06/01/37 0 0 0 0 12/01/37 0 0 0 0 25 06/01/38 0 0 0 0 12/01/38 0 0 0 0 26 06/01/39 0 0 0 0 12/01/39 0_ 0 0 0 0 0 - - 0 0 1,000,000 1,000,000 1,000,000 1,500,000 (6,858,943) 857,368 1,501,575 0 - (0) BAE Site 2013a.xlsx Prepared by Sevenich,Butler,Gerlach&Brazil,Ltd 5/22/2013 CITY OF FRIDLEY,MINNESOTA Alixek 1 4F Page 1 SUMMARY OF HRA CASH BALANCES 1 I Term of Actual Actual Actual Projected Projected Projected 11111 District 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 CASH BALANCES _HRA General Fund 2,128,887 2,622,505 3,753,966 4,018,921 4,279,663 4,540297 HRP Housing Replacement Program(HRP _159,796 590,922 772,257 795,150 811,003 826,935 _RLF Housing Funds(RLF) 2,845,956 2,801,309 2,853,960 3,100,608 3,148,489 3,196,609 Debt Service TIF Districts(Capital Projects Funds) _NEI Center City-Decertified DECERTIFIED 14,490 12,897 12,897 (0) (0) (0) C©Moore Lake-Decertified DECERTIFIED 0 0 0 0 0 0 ©North Area(Univ Ind Park)-Decertified DECERTIFIED 33,710 33,710 33,710 0 0 0 •Pre'90 -I I Johnson/Skywood/Frank Shear-Dece DECERTIFIED M©Paco/Paschke/E Ranch Estate-Dece DECERTIFIED • 6 Lake Pointe(Medtronic) 12/1985-12/2025 556,653 556,284 451,982 452,015 452,048 452,081 NW Winfield DECERTIFIED 255,592 193,397 0 0 0 0 I 8 Shorewood Rest-Decertified DECERTIFIED 0 0 0 0 0 0 _II 9 Onan/Murphy Warehouse 09/1989-12/2015 1,126,261 1,270,339 1,593,440 1,874,332 2,140,914 2,408,828 • 10 Northco Phase III -Decertified DECERTIFIED --- Post'90 -- •MI University/Osborne 01/1992-12/2018 134,093 91,393 146,611 193,559 239,085 284,839 12 McGlynn Bakeries 03/1992-12/2019 83,981 33,735 45,694 74,359 99,452 124,670 II 13 Satellite Lane Apts 06/1995-12/2023 110,799 61,685 37,409 73,330 103,809 134,440 • Industrial Equities(Bus.Ctr)-Decertifi DECERTIFIED • MN Commercial Railway-Decertified DECERTIFIED /"-• II 16 57th Ave(Linn) 09/1997-12/2024 19,783 50,503 4,806 25,195 44,504 64,006 nil Gateway East 2001-12/2028 89,919 50,692 6,094 26,674 43,460 60,415 _ I 18 Gateway West 2005-12/2033 13,476 206,972 42,019 268,362 271,974 275,621 •E 5110 Main St NE(Ind Eq) 2007-12/2034 85,980 114,296 48,142 48,365 48,591 48,820 BAE Site(RER) ®Gateway Northeast 447,164 327,977 304,035 304,035 304,035 304,035 ®Northstar Transit Station District MIMI Investments(Interest Receivable) 0 (255) (71,644) (71,644) (71,644) (71,644) II TOTAL CASH BALANCES 8,106,540 9,018,362 10,035,378 11,183,261 11,915,382 12,649,952 Annual Change (3,555,055) 911,822 1,017,016 1,147,883 732,121 734,570 I AVAILABLE USES Redev.Funds Available-HRA General Fund 2,128,887 2,622,505 3,753,966 4,018,921 4,279,663 4,540,297 Redev.Funds Available-Gateway Northeast&Investments 447,164 327,722 232,390 232,390 232,390 232,390_ Redev.Funds Available-Pre'90 TIF Districts(6,7,9) 1,938,506 2,020,021 2,045,422 2,326,347 2,592,961 2,860,910_ Not Available-Post'90 TIF Districts(16-22) 209,158 422,463 101,061 368,596 408,529 448,862 Northstar Station Area Costs(11,12,13) 328,873 186,813 229,714 341,248 442,346 543,949 Housing Activities(RLF,HRP) 3,005,752 3,392,231 3,626,217 3,895,758 3,959,492 4,023,544 Total Available CASH Balances I-8,058,340 8,971,755 9,988,77 11,183,261 11,915,382 12,649,952 I I Restricted-Bonds DS only-Pre'82&Pre'79 TIF Dist(1,3) 48,200 46,607 46,607 0 0 0 Total CASH Balances,Including Restricted 8,106,540 9,018,362 10,035,378 11,183,261 11,915,382 12,649,952 0 0 0 0 0 0 /'"N • Fridley Cash Flow 2013b.xlsx Prepared by Sevenich,Butler,Gerlach&Brazil,Ltd. 5/23/2013 ACTION ITEM lk HRA MEETING OF JUNE 6, 2013 QTY OF FRIDLEY Date: May 29, 2013 To: Darin Nelson, Acting City Manager From: Paul Bolin, Acting Executive HRA Director Subject: Gateway Northeast- Amendment to Broker's Agreement In November 2011, Premier Commercial Properties were the selected to assist the Authority in marketing the Gateway Northeast Properties. Premier had experience in the local market place not just as a property broker,but as a developer and property manager. The group also had key contacts with the some of the market segments likely to move to the site. The listing agreement included an Exhibit A(attached),which was a map of the HRA owned property. At the time the Authority did not own the Fridley Animal Hospital. The site should now be added to Exhibit A, as the Authority now holds title to the property. Recommendation: Staff recommends the Authority add the Fridley Animal Hospital Property to Exhibit A of the Gateway Northeast Property Listing Agreement. n EXHIBIT A 61ST AVE -, ., _ : - City of Fridley • I-: �I i F. . r II AProperties V !-- •--4 I ,! --- - -15,610Sq Ft r . :.__ . ' with Zoning • ;---- _._.--i i I--i --`---1 Along University Ave• 11,051 Sq Ft ...... - •--, • ,I-•--•• . •11 I .* . 1' 2,761 Sq Ft Ø19334Sq __. j • I ' V)` __� :�- Mt . ! I � � i - •---._.__. i--1-7--':.• _.._ •••- • ...; . - --- q -_ --• .. . 22,091 S Pt r-- _1 -- ` . 1_... 1 60TH TH AVE_ _.._ • 6_ .....,-AVE . _..___...... • I 24,628 Sq Ft i , j•�� 8,146 Sq Ft? ; _ I 37,780 Sq Ft _..__.—. - I_ • 0 50 100^J200 �- .... r 1 f .. •`,MINNXSVtA ! Feet --------- Mop Pate, November and 2011 AI . /.� ...... qty or Mall Coomlox+ei yomdopm°! , I._.--.— { _+j I - . .• Ply of FdAoy a�$ t - �• - 10,602 Sq Ft :_..._.. ...__.._ ---• • • _•• 4,050 Sq Ft 1 ' 1 HRA Property --..M.., 58TH AVE__ --� - - 0.v 6,750 Sq Ft! Zoning -'"? : ; ' _ i i I I R-1 -One Family Units i i i�i R-2-7Wo Family Units . • -..; '•. 1:: ( ---{ • 1 '•; S-1 -Hyde Paris Neighborhoods ' ! •.. &. I _I l r S-2-Redevelopment District t '......_._. I-. rr .-- i C-2-General Business Cl). V , i-.-r---- . Q._ ..- I 16,128 Sq Ft i --•-ti • ROW - �- I •• •- : X I • W . Road I F 35,327,Sq Ft 58TH AVE ---? o 1 `1 - i. w r_: . I-- Qty d FrdArry — t3, ' ,i E431 11NVerdIly Aw NE - • Ricky,Mimewla 6643201303 1 L. ----• 'yy'' t I i Phone:(109)672.3606 i --i I i f : (n 1 -_...—. ._. -... t. -• --- I . . _}.. 57 1l2 AVE • INFORMATIONAL ITEM HRA MEETING OF JUNE 6, 2013 CITY OF FRIDLEY Date: May 29, 2013 To: Darin Nelson, Acting City Manager From: Paul Bolin, Asst. Executive HRA Director Subject: Gateway Northeast Update Fridley Animal Hospital: Closing on the Fridley Animal Hospital took place at 1 PM on May 29th. Dr. LeMay will lease the space from the Authority through August 31, 2013. During this time we will conduct a hazardous materials assessment, blight analysis, and run a bid process to allow demolition to take place in early September. Lyons / Trident Group: The Lyons/Trident Group, have developed a draft site plan of how the GWNE properties could be developed. Roger Fink will be at the HRA Meeting on June 6th to provide more detail on their ideas for the site. The group hopes to incorporate the proximity of transit into the design and marketing of the site (a larger, colored copy is attached). FRIDLEY APARTMENTS FRIDLEY, MINNESOTA �,�r � T , COlEGROUP c �r While Mr. Fink has indicated that this is an early draft, it appears that the site would be able to accommodate 3 buildings (204 units) of assorted multi-family housing (market rate & senior). The buildings would have 3 stories of living area and underground parking. The buildings would have a "metropolitan" look to them and incorporate architectural elements similar to those found on the buildings pictured below. keti Mr. Fink will incorporate comments from the Authority into his future drafts of the site plan. After meeting with the Authority, the next step for the developer will be to bring the site plan to the City's Development Review Committee for comment and begin working on the land sale with the Authority. It is possible that the project could break ground late this fall. ) ) ) • FRIDLEY APARTMENTS FRIDLEY, MINNESOTA '1 t t t > 'i :,,,:,.4,„,ifiliii:ikkir;.;4.-'..,i7,.--,.L',-; .,..,,.,-'',4-,.;--=‘,.;;;,,,,,.1';'-'--•.,;v.' ."-.:"...',..:.;'''''- :- '. -:,41-iii.iiiti;ricii::,' -''' -'.-....-'"v. : , . "" ,, Si. , ----•-,7- 1- ..7774,..4iiit..,- ''.7:.- 14,-r ,,..A:., ,, 1 ;: , ; i., ... i.. .'.?, ." :: : ' i • :: , : '. ,. .. .' '' i' '• ::" i'' !•ii l't.r'0'04'00!'401:4''';044..'5,Z777S■77;J•'''=•177.:0,',4;0.'"*, '4'''.'4-'''■■.','''' '";?.,21111140,1'.■, 4-`k.,.:. -"d,..'..e,:.,A','fl,MTMIFIP.SIF.fa0',;',',-,,.,"'"I!.'.;', '‘-',::.'4.,,r1''''i',"',,'7.1.' ,,,■' '..'h.It''.. iria“,,,'.,,,,t.,w,.4, ,,,,.,,, ..,•.,‘,...,1',.:,:i■k-,t":,,,A,Z,',:',";,,1,i),",'''' p4S'4,,,A'",;:',-"-.-.1,.e:,...'.`:;:','.'-i.,,,,4;:";■4:10iqi.;.6'+`%.1'..1 ...4.,..c'''..1.`'.-' .',..,-,t..1.'",,.'"''.,.'',:'.,k.,,•11''','i.;,, ,,,, - XOtit q.h".1,A0,4,"k..,,,..4 ,"+,',,,,•4,,L:-..--,-.1::.,0,,x4i.Aoresql.r'i.- : ! ;K,1,:.-7, -t1:1::11711>Z.':'.,,P!':,'''', ''1 'I‘l;',,Vil,[:1!!')VN:15-[..' r::,,..r '4■',;;Is'll.h.«:',..e4'vtl'+'4.1;..;i':',',g1,-:;.[:■11-,,I:fi:;:b,14:■-;;;Irlt:--,7',Ls.ri'iirt0h■..,':',';'igat•Slj'''1:17: '',... liWai:FEN,AMIgeo.t.,- IrOaiiii4tilit;I: 7 , ' l .'1,,:).Z,•.1glili'IPP;:117---' ,tiev•',14ire!TZ'""`;',gi . 1(40W1•77 1 '. -."'''.'_'''..1 '''''' ", ,'"i',,,:: ' .1 --''''''''''''4'''''''4'--.''''''.1'':,'"'"''''''''''''' '''''''''''-''• '''' '4''''', 4!..,.-, r.,,k;•4_:'•:.,4"-•P_,... --•.....- , , 44,v.,.,•,....;;-. , ,, , ,,.. .,•,•,es,', '..•.), ' - . • ..,•. .,, .-•:,,', ',,.„-:-.,•• ',' 65oli,,,g1t.:Laill,.: .,__.i ..., . . . _. _ . . . ...., ....,,,• .. , _ ,„ ., , ..,,,,,......., 1*. , ••,,,,,,.„ ,,.. ., ,:,.--c.;•,f•t.',ipf;:i.,,;`,;;',4;-..,:•••,'Jfity,.',:14•14.r.oll-`:::,,,,00, :•4'w,-,14;4,44,:10,,v,r7,;,,, .'„,..T.,,--;:Aif.',',74ip''.:;•••,i'l,•:0;,,,,, ,,,,:•%.•74,::,,,,.•:',k.)-.1,',44,,,,„„.,•,,4,,,,,.1.twl,g,r,;.•,:Kcc.',-,f4;.)-..-V..P.5;2?!.''',,,i'j'zy,T,',"...,:k -,;,;,1,,f ,,,,,45:‘•';',;::....;;•!;:.:,,,,,),,,,:i0,.q,,,:4•,.,,i.,,•,4,,,,,:',;,;.,..,i,•-..Y'',,i',',,,:4',....,,,240.1,,A•,.•,,,g:;•,•,!,$-•,41,..,,,. ••:,,•,'.-,•,:.i...,.',•!,, ,,,I.:•••:„:.••','4.‘;'•.',' • ; -----,•••,-•-:',-.`•!••--,--•••-•-...,::•''',.•'-'''•.•:!,-., •;.•,..,,,g.4.,-,---,4••,,,ii•-•..,.,,.,-.,..,-..,1.,.,/,,..',-.•, ,••••,',...:•,k'A-'4,','-.• ,,t.,4',-..,-,:,.,,, , ,,,.-.,,,,,,,•:,..-..,.,.,,,,,,,,,•;:.•4. ,,,,*...,,,r.-,.-,,, :,- , i'-'-yi" ' . ' ' ':'.—:•,',,,rii*li,,,li,,'Ytoof44,10,,,;', 4 ,.'..,,..',.-.;-- ,-,-',:.,'-..,...'. ,i, , ';', ' ,04,,e0.-.1x--,,, iv,,9,...., i.,,,`;. 1:'''.,.).,':::'...'.:L:.' ' . ':. ' :' :■ , ' 1.4' 1 , .','.: ' :.■ '" : : U4IVP'4$41':AVENUE N.E• ' .i..f , , . :. , • . „ .. :i• > < > t:: SITE PLAN s r- COLE •H ( 1) E I 1 ) n,e,i , 1LC. 216 Park Avenue S.,Suite 102•S .._... ,..., Fridley HRA Housing Program Summary Cover Page June 6, 2012 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. /•• n H:\—Paul's Documents\HRA\HRA Agenda Items\2013\May 2,2013\Housing Program Cover May 2013 Page.docx II s ( ( ( Itl Fridley Loan Summary Report ce e Activity for Period 4/15/2013 -5/15/2013 Center for Energy and Environment Application packets requested/mailed: This period: T 5 I Year-to-Date: 24 Residential Advisor Visits: This period: 1 Year-to-Date: 2 i Loans currently in process for residents in your City: 1 Closed Loans This period: Year-to-Date: Fridley Units Units Closed End 8,780.62 1 51,808.62 3 Last Resort 0.00 0 6,323.00 1 Total 8,780.62 1 58,131.62 4 Leveraged Funds This period: Units Year-to-Date: Units 0 0 Total 0 0 Types of Improvements Financed YTD #of Projects %of Total Types of Properties Financed YTD # %of Total Single Family Residence 4 100.00 Heating System 1 25.00 Other Interior Improvements 1 25.00 Roof 1 25.00 Windows, Doors,Storm Windows,Storn 1 25.00 cec' Fridley Loan Detail Report Center for Energy and Environment Activity for Period 4/15/2013-5/15/2013 Fridley Property Address Amount Closed Date Improvements Property Type Units Occupancy Closed End HALSTAD 5840 5TH ST NE 8,780.62 4/19/2013 Roof Single Family Residence 1 1 8,780.62 Total: 8,780.62 ii AMI based HUD Income limits for current year at 100%of family size of 4 • • it :J � CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION June 6,2013 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:00 p.m. ROLL CALL: MEMBERS PRESENT: Larry Commers Pat Gabel Stephen Eggert William Holm Gordon Backlund OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Scott Hickok, Community Development Director Darin Nelson, Finance Director Becky Kiernan, Accountant Jim Casserly, Development Consultant Greg Johnson, Development Consultant Paul Hyde, Hyde Development ACTION ITEMS: 1. Approval of Expenditures MOTION by Commissioner Eggert to approve the expenditures. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of May 2,2013 Meeting Minutes MOTION by Commissioner Gabel to approve the minutes as presented. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 3. Election of Officers MOTION by Commissioner Holm to nominate Larry Commers as Chair and Pat Gabel as Vice Chair. Seconded by Commissioner Backlund. r HRA Meeting of June 6, 2013 2 UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY MOTION by Commissioner Backlund to cast the ballot voting as nominated. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Public Hearing and Consideration of Resolution Authorizing Sale of 58013 d Street NE MOTION by Commissioner Eggert to open the Public Hearing. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING OPENED AT 7:04 P.M. Paul Bolin, HRA Assistant Executive Director, said that there continues to be a lot of interest in the lots the Authority has for sale. Novak-Fleck Builders has submitted a lot reservation agreement to build a new home on his lot. They are working with a buyer to finalize the home design and the home will have 4-5 bedrooms and two bathrooms. Due to timing issues with HRA Meeting dates, the plan has not been finalized. Mr. Bolin stated that Novak-Fleck Builders has built six homes on Authority owned lots over the past year. They are extremely easy to work with and deliver the product as promised. Provided the home plan submitted meets the HRP requirements, staff recommends approval for the sale of this property to Novak-Fleck Builders for $30,000. Commissioner Gabel noted that it is a larger home. She asked what the selling price would be. Mr.Bolin replied $225,000. MOTION by Commissioner Holm to close the public hearing. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS HEARING DECLARED CLOSED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC 7:06 P.M. MOTION by Commissioner Backlund to approve the sale of 5801 3 Street subject to plan approval by staff. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 5. Public Hearing and Consideration of Resolution Authorizing Sale of 5765 3`d Street NE HRA Meeting of June 6, 2013 3 MOTION by Commissioner Gabel to open the Public Hearing. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING OPENED AT 7:08 P.M. Paul Bolin, HRA Assistant Executive Director, stated that this is the third lot Home Detail Builders has purchased from the Authority in the past year. Home Detail plans to build a two-level home with approximately 1,500 finished square feet. The home will have 4 finished bedrooms and 2 finished bathrooms. The exterior of the home will utilize a blend of maintenance free materials and will incorporate shakes and stone on the front of the home. The home is being designed to blend in with the existing homes found in the Gateway West project area. Staff recommends approval to authorize the sale of the lot to Home Detail Builders for $30,000. Chairperson Commers asked if the plan was to build 1,500 sq. ft. above ground. Mr. Bolin replied that is correct. Commissioner Gabel said that she had been into the other home on Third Street and the rooms were very small. She was concerned with the size of the bedrooms. Mr. Bolin noted that these homes are being built to meet the desire of the buyers. There is a demand for these homes. People like this layout even with the small bedrooms. The Authority doesn't want five homes that look identical next to each other. The builder is meeting with an architect and has unique designs that will break up the block. Commissioner Gabel was more concerned with the livability in a small space. She would like to see the designs when they are completed. Commissioner Backlund asked if the basement went under the garage. Mr. Bolin replied the basement is only under the main living area. MOTION by Commissioner Holm to close the public hearing. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:16 P.M. MOTION by Commissioner Eggert to approve the sale of 5765 3`d Street. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 6. Public Hearing and Consideration of Resolution Authorizing Sale of 4656 2nd Street HRA Meeting of June 6, 2013 4 MOTION by Commissioner Gabel to open the Public Hearing. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING OPENED AT 7:17 P.M. Paul Bolin,HRA Assistant Executive Director, said that this is the third home that Boulder Contracting has constructed on HRA property lots since last summer. Boulder Contracting plans to build a modified split level with approximately 1,900 finished square feet of living space. The home will have 4 finished bedrooms and 2 finished bathrooms. The exterior of the home will utilize a blend of maintenance free materials and will incorporate shakes and stone on the front of the home. This property was just purchased in March so the home is still standing. Hazardous materials were removed 2 weeks ago. Staff received bids from contractors for demolition of the home and Buberl Recycling came in as the lowest bid. Buberl Recycling can demolish the property in the next 10-14 days and then Boulder Contracting will close on the property within 3 weeks from today. Staff recommends authorizing the sale of the lot to Boulder Contracting for $30,000. Commissioner Gabel asked if Buberl Recycling has been used before. Mr. Bolin replied yes. Commissioner Holm asked if the garage would be removed. Mr. Bolin said it will be removed and it is not worth saving. Commissioner Backlund asked if the alleyway would be vacated at some point. Scott Hickok, Community Development Director, said staff decided to analyze vacating alleyway's on a case by case basis. Home owners can bring a petition and Council will consider vacation at that time. MOTION by Commissioner Gabel to approve Buberl Recycling as the contractor to demolish the home not to exceed $9,450. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY MOTION by Commissioner Eggert to close the public hearing. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:21 P.M. MOTION by Commissioner Backlund to approve the sale of 4656 2nd Street. Seconded by Commissioner Gabel HRA Meeting of June 6, 2013 5 UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 7. Approval of Term Sheet—Hyde Development Paul Bolin,HRA Assistant Executive Director, stated that Hyde Development is purchasing the BAE site and it is heavily contaminated. There is still employment on site of less than 400 people. In order to redevelop this site the developer needs assistance to pay for extraordinary costs that are associated with this type of development. The Authority agreed to create a special hazardous sub district and TIF district to help the developer with costs. Currently the value of this site is $12- $13M and when Hyde Development finishes the development it will have 1.6M sq. ft. in new buildings on the site and the new value will be over $85.OM. Mr. Bolin stated that the item before the Authority tonight is to approve the term sheet. This is an outline of the different responsibilities that the Authority and Developer have in moving forward with this project. The term sheet spells out the level of assistance the Authority is willing to give and defines the terms and conditions on how to move forward with the project. All of the information in the term sheet will come forward in a development agreement at the August meeting. Commissioner Eggert asked staff to update the Authority on the project. Paul Hyde, Hyde Development, said that they have been working on this for 1 '/2 years and it is easiest to summarize the update as three different buckets of things to get ready for the closing. Bucket one is to figure out costs and how to pay for the costs; bucket 2 is to figure out what the redevelopment and design will be and bucket 3 is the environmental review process. The plan is to purchase the site at the end of June. Before the closing can take place, we need to prove to the lender that we are able to pay for the lots. Once the term sheet is approved, the bank loan can be approved and the redevelopment can begin. Commissioner Gabel asked for clarification on the area that will be purchased. Mr. Hyde said that parcel three is the vault and owned by BAE. It has heavily impacted soils and we are not buying that site;just parcels one and two. Commissioner Holm asked if they would be going through four phases. Mr. Hyde answered yes; they are working around the fact that there is 2.OM sq. ft. of existing building that has leases to five tenants through December 2015. Nothing can be done until the leases expire so we will start on the south side and then work on phase 3 and 4 when the leases expire. Commissioner Backlund asked if the information provided are the best estimates at this time. Mr.Hyde answered yes; that is nature of these projects,the planning has to start somewhere. This is a template and game plan on how we will work together. The specifics will unfold as the project unfolds. HRA Meeting of June 6, 2013 6 Chairperson Commers asked if the letter of intent or term sheet would be further refined when the actual development agreement is presented. Jim Casserly,Development Consultant,replied yes; the term sheet is 8-9 pages and the development agreement will be upwards of 30 pages. This is an abbreviated version and the development agreement will be in more detail. Commissioner Gabel asked how the superfund site would be handled. Mr. Hyde replied that this is the fourth superfund site he has developed. This site is governed by the federal and state EPA and MPCA. BAE and the Navy have been overseeing the soil and groundwater for many years. Now something new will be built in there and we need to be able to build new buildings on this superfund site. There will be a significant clean up underway and new buildings will be developed on this site. Everything must be approved by the MPA before any development can happen. Commissioner Eggert asked how the development plan was coming along. Mr.Hyde said that someone has been selected and it will be made public in a week or so. The timing of this redevelopment is terrific and there currently is a demand for new buildings. He interviewed an architect today and will choose a development contractor. This information will be released once the closing takes e We would like 201 0 diverse portfolio of users on this site. sustainable with not dust one tenant. MOTION by Commissioner Gabel to approve the term sheet. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 8. Amendment to Broker's Agreement—GVJNE Paul Bolin,HRA Assistant Executive Director, stated that in November 2011, Premier Commercial Properties were selected to assist the Authority in marketing the Gateway Northeast Properties. Premier had experience in the local market place, not just as a property broker, but as a developer and property manager. The group also had key contacts with some of the market segments likely to move to the site. Mr.Bolin stated that the listing agreement included Exhibit A, which was a map of the HRA owned property. At the time the Authority did not own the Fridley Animal Hospital and that site should now be added to Exhibit A, as the Authority now holds the title to the property. Staff recommends the Authority add the Fridley Animal Hospital Property to Exhibit A of the Gateway Northeast Property Listing Agreement. Chairperson Commers asked what the expiration date was on the listing agreement. Mr.Bolin replied the end of June 2013. HRA Meeting of June 6, 2013 7 MOTION by Commissioner Gabel to amend the broker's agreement to include the Fridley Animal Hospital. Seconded by Commissioner Eggert. UPON VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS: 1. GWNE Site Plan Paul Bolin,HRA Assistant Executive Director, said that the Fridley Animal Hospital was purchased on May 29th that the first month's rent check has been received; they will lease through the end of August. This property will be included in the site plan put together by Roger Fink and the Trident Development Group. Roger Fink,Trident Development Group, said that they have looked at the contiguous section of available lots which total about 5 '/z acres. Land planning considerations were taken into account and this area has primary traffic access and an intersection at the north end where 61"intersects. The existing underground utilities could be expensive to abandon or rearrange. The property has a relatively long and narrow depth to it which is perfect for apartments. Part of the land planning consideration is the rear property lines of the neighbors to the east where a mature neighborhood is located and the yards have privacy fences. They are considering realigning the existing frontage road. The plan would be to not create a"s"curve but continue straight and curve around. They may also create public open spaces at 61 st and University and continue with building improvements south of that area. The plan shows three separate apartment buildings and the road access would run between the buildings and highway right of way. That way there is some vehicular access to both sides of building. Due to the number of units and site constraints they will look at underground parking in addition to surface parking on site. Mr. Fink said that the green space at north end is to offer some outdoor green space for renters to enjoy. This space would be a private amenity for a park like setting and transit connection or bus station; they are open to suggestions on the green space. They would like to create something unique in the green space. Mr. Fink said that the apartment complex would consist of a three story building; three separate buildings. The style would be an urban, high density type of structure. The buildings to the north and south would be smaller buildings with 54 units each. The middle building would be a 96 unit building for total of 204 units. These numbers could change as the project goes along. Mr. Fink stated that a demographic and market demand study was done to see if there is enough need for rental in this area. The market analysis looked at Fridley, Mounds View, Spring Lake Park, Coon Rapids, and Blaine; about 226,000 people. The study looked at target market renters 65 years of age or under who has an annual household income of$40,000 or more. Within that entire market area households are projected to increase by 1,381 by 2018. According to the analysis about 25% of that household income will choose to rent rather than own. About 19,000 renter households currently meet that same demographic area. Of those 19,000 about 5%will turn over and choose to relocate their rental location. Using this criteria,the increase demand by 2015 HRA Meeting of June 6, 2013 8 is approximately 1,085 rental units needed. 313 units are under construction in that trade area. We anticipate we can attract to this site 20%of the demand or 203 units. Mr. Fink said that another market study is needed for the 55+population demand. A lot of independent seniors,not assisted living, are looking for a lifestyle change. They will look at active seniors to add to this market study. Mr. Fink stated that if the Authority likes this concept plan,they would like to move forward with the next step. There is a contingent purchase agreement,title work, survey work etc. entered into a hand shake agreement a month ago to figure out the site challenges. The market study would be updated and they would refine the site plan, final plat etc. Commissioner Gabel said that the neighborhood met to talk about ideas on what they wanted to see there and some housing ideas arose that included some retail on the bottom level. She asked if 0 there was any consideration for a coffee shop or dry cleaners. Mr. Fink said that multi-family housing is their business model. There was a developer looking to do commercial development at the north end of the site and they were not able to attract interest from retailers. Retail has not been considered here because housing is our specialty. Commissioner Gabel stated that the housing would be open to all age groups, not just 55+. Mr. Fink replied that they are still evaluating what the target market will be. The market study from a year ago did not speak to a specific demographic. They will redo the market study to include an analysis for the 55+households. Commissioner Gabel asked what the rental fee is for a$40,000 household income. Mr. Fink said that Fridley rent levels average $1.25 sq. ft. per month. There is a lot of competition at 99 cents to $1.10 per month. New Brighton is at$1.40-1.60 sq. ft.; this is not low rent but achievable rent for that income range. One bedroom rental units will be around $95041,050 per month and includes heat, sewer,water and trash. Two bedroom rental units will the tenant around $1,150- $1,375 and three bedrooms $1,625-1,650. This rent structure may change would pay for heat which would lower the rent. Commissioner Holm asked if the market study would be completed before they proceed in making one building a senior building only. Mr. Fink replied that if the market study indicates there is a strong market for 55+they would consider that. Commissioner Holm asked about the setbacks from University Avenue where the fence is currently located; did they envision a service road on west side adjacent to the fence line. Mr.Fink replied that the concept is to upgrade the fence with the ironibrick look;they would like to continue something similar to that look. Commissioner Holm asked if that roadway was necessary. • HRA Meeting of June 6, 2013 9 Mr. Fink was not sure. Commissioner Holm asked if the parking space underground was for all tenants. Mr. Fink replied that one stall per unit would be available underground. Additional parking space would be available on surface parking. Commissioner Holm asked what the city requirements were because when there is less surface parking it looks nicer. Scott Hickok, Community Development Director, said that because this is in the transit overlay district it relaxes the parking requirement and the second vehicle could be replaced by other means. Working professionals that live on a transit line may use other means of transportation. One car per unit is required and there is flexibility on the second vehicle. Commissioner Backlund asked if this development would have common areas, party rooms etc. Mr. Fink replied yes;there will be an elevator, party room, fitness club, vending, storage, and laundry. Commissioner Backlund asked about the area in between the building on the north and middle if there could be green space in that area. Mr. Fink replied yes,they could look at that as a possibility. Commissioner Backlund said that the green areas are limited because of parking. Mr. Fink said that they are open to looking at options. They would like to have flexibility with parking because usually requirements are 2.5 parking spaces per unit. They have asked the architect to consider two parking spaces per unit. Commissioner Eggert asked about the private fences on the back side and if they thought of a treatment to deal with the variety of fences. Mr. Fink said that they have not given that area much thought. Commissioner Holm asked what the next step is. Mr.Bolin said that tonight was just a fact finding mission for questions and comments from the Authority. The next steps would be to start to discuss a preliminary purchase agreement and talk about the terms sale down the road. Mr. Fink has been working on this for about a year. There are some site constraints and the survey work has been done for almost the entire site. The next step would be an agreement that gives Mr. Fink the reassurance that if he delivers a product the Authority would work on a plan with him. Commissioner Backlund asked if the utilities were city or Met Council sewers. HRA Meeting of June 6, 2013 10 Mr. Bolin said that it is city utility services in that area. Mr. Hickok said that the appraised value came back on the Citgo Gas Station site and it was too high to make the offer. The site has size characteristics of 1020 sq. ft. and the developer would be encouraged to rezone the property to C2. Right now people think the City owns this property and tree trimmers are dumping limbs on the property. This causes a developer additional cost all the time. The building right now is a liability and it is best to tear it down and then it looks like the site is paid attention to. A site that is mowed and groomed doesn't get dumped on. Chairperson Commers said that development to the north would be enhanced if something like this went in. 2. Housing Loan Program Update Paul Bolin,HRA Assistant Executive Director, stated that in April they closed on one revolving loan making a total of four year to date. There was one remodel advisor visit in that time frame totaling three year to date. ADJOURNMENT: MOTION by Commissioner Backlund to Adjourn. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 8:30 P.M. Respectfully Submitted, Krista Peterson, Recording Secretary