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HRA 01/05/2012 I January 5, 2012 HRA Meeting Regular Meeting Agenda 7:00 p.m. City Hall, Council Chambers Call to order Roll call. Action Items 1. Approval of expenditures 2. Approval of December 3, 2011, Meeting Minutes 3. Approval of Resolution Designating Official Depositories 4. Approval of 2012 Mowing Contract Informational Items 1. Update on Potential Redevelopment of 4800 East River Road/Preliminary Review of TI Analysis 2. Housing Loan Program Update Adjournment K:\COMMISSION AGENDAS\2012 HRA Commission Agendas\120105.docxK:\COMMISSION AGENDAS\2012 HRA Commission Agendas\120105.docx DECEM` )2011 Fridley HR. cking A/P COVE IIEET Acct#006.,, 7036 f Date Check# Vendor Invoice# Description Code Amount 11/30/2011 29322 Kurth Surveying, Inc Lot Split Survey 501-0000-430-4520 875.00 875.00 11/16/2011 29325 National Sports Center 2012 Facility Use(H&G Show) 265-0000-430-4330 2,225.00 2,225.00 12/7/2011 29326 CenterPoint Energy 8784216-7 Gas Utility Bill 265-0000-430-4338 62.70 9003035-4 501-0000-430-4338 44.81 107.51 12/6/2011 29324 Midwest Fence&Mfg Repair University Ave&57th Fence 100-0000-430-4346 2,225.00 2,225.00 12/7/2011 29323 Liesch Associates, Inc Demolition Work-Abatement oversight 501-0000-430-4340 1,264.50 1,264.50 Loan Origination Fees-Tikkanen, Hasley, 12/19/2011 29330 Center for Energy&Environment 10742 Gabrelcik 265-0000-430-4340 1,650.00 Remodeling Advisor Visit-Norton, Pastrones,Shaffer,&Tikkanen 265-0000-430-4340 520.00 Marketing Services 265-0000-430-4340 1,964.62 4,134.62 12/19/2011 29332 Fridley HRA Home Loan Program 156 Last Resort Deferred-Tikkanen 1400 69th A 265-0000-127-0000 8,495.00 Revolving Loan-Halsey 4769 2 1/2 St NE 265-0000-127-0000 17,469.00 Revolving Loan-Gabrelcik 5801 4th St NE 265-0000-127-0000 14,000.00 39,964.00 12/19/2011 29333 Monroe Moxness Berg 127162 Cash/Flow Budget 100-0000-430-4330 130.00 Housing Replacement Program 501-0000-430-4330 1,331.30 Gateway NE 474-0000-430-4330 2,070.00 BAE Site 100-0000-430-4330 2,668.38 Target Operation Center 100-0000-430-4330 932.50 Miscellaneous 100-0000-430-4330 650.00 7,782.18 12/23/2011 29331 City of Fridley Water Utility-4757 2nd St NE 265-0000-430-4338 32.10 32.10 12/29/2011 29329 Paul Bolin Cell Phone Charges August-December 100-0000-430-4332 125.00 125.00 December Invoices 58,734.91 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION December 1, 2011 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:00 p.m. ROLL CALL: MEMBERS PRESENT: Larry Commers William Holm Stephen Eggert Pat Gabel John Meyer NONMEMBERS PRESENT: Paul Bolin, HRA Assistant Executive Director Darin Nelson, Finance Director/Treasurer Becky Kiernan, Accountant William Bums, City Manager ACTION ITEMS 1. Approval of Expenditures Chairperson Commers asked if the item labeled as BAE was part of the reimbursed expenses. Paul Bolin, HRA Assistant Executive Director Paul, answered yes. Commissioner Holm asked what period of time the administrative operating expenses were for. Becky Kiernan, Accountant, answered six months. MOTION by Commissioner Eggert to approve the expenditures as presented. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of November 3, 2011 Meeting Minutes MOTION by Commissioner Holm to approve the November 3, 2011 Meeting Minutes. Seconded by Commissioner Gabel. Commissioner Gabel asked on the bottom of page three for volleyball courts to be changed to Spikers. She was also confused about the retainer information on page five. Paul Bolin, HRA Assistant Executive Director, said that the initial $7,500 retainer was paid which is our standard practice. In this case, in the interim agreement, once we go through the Housing and Redevelopment Authority Commission Meeting of December 1, 2011 2 $7,500 initial retainer any additional costs will be reimbursed at 50% of our legal counsel's time. All of the studies that happen for this property are fully paid for by the developer. n Commissioner Gabel asked what the $10,000 amount was for on page seven. Mr. Bolin answered that an additional $10,000 deposit will be made before we proceed with authorizing the blight analysis. When this fund gets down to $1,000 the developer will replenish with more funds. Commissioner Gabel noted on page seven, paragraph five, last sentence should read the reports go back to the city. And on page eight, first paragraph, to change reserve to preserve. Chairperson Commers said that on the bottom of page seven he had said he would like to see a 135 acre development like Medtronic on the BAE site. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MINTUES APPROVED AS AMENDED 3. Approve 2012 Budget Becky Kiernan, Accountant, said that the purpose of tonight's presentation is to provide highlights of the 2011 financial activity and an overview of the proposed 2012 budget. The packet that was distributed includes the Cash Balances as of 09/30/2011 for the General Fund, Housing Fund and TIF District Summary as well as the Final 2011 Budget and Proposed 2012 Budget. Ms. Kiernan said that the HRA Budget is divided into three categories; a General Fund that includes administrative and operating expenses, a Special Revenue Fund for the Housing Loan Program and Capital Outlay Funds which includes Tax increment districts, redevelopment projects and housing replacement program. Ms. Kiernan reviewed the 2011 Activity Highlights and Recap that included Property Acquisitions in the Scattered Home Site for property located at 551 Hugo Street, 381 Ironton St NE, 465 Mississippi Street NE, and 561 Ironton Street NE. It also includes the Home Demonstration Sites for property located at 831 Mississippi Street NE that sold in June and 4757 2nd Street NE which is currently for sale. Ms. Kiernan said that the total projected revenues for 2012 are $2.1 million, which is a $306,000 decrease from 2011. The reduction in levy amounts includes property values that showed a decline of approximately $36,000 in tax levy revenue and also a reduction in interest income, and rental income. Ms. Kiernan said that the projected expenses for 2012 are $2.3M which is a $111,000 increase from 2011. The increase is due to the Benefit Costs, purchases in the Housing Replacement Program and the cost of vacant lot maintenance. Housing and Redevelopment Authority Commission Meeting of December 1, 2011 3 Ms. Kiernan reviewed the following Total Projected Capital Outlay Expenditures for 2012: Funds: Housing Loan Programs $ 100,000 Lake Pointe (TIF #6) 709,330 57th Street(TIF #16)—Paid off in 2011 0 Main Street(TIF #19) 119,600 Scattered Site 500,000 Commissioner Gabel asked for confirmation regarding the administrative charges on page four that the full time employee salary is Paul, and then the charges for other employees include Dr. Burns, Scott Hickok or Becky. Ms. Kiernan replied that is correct. Commissioner Gabel asked why the PERA contribution is so much more; for 2011 it was $6,300 but for 2012 it is listed as $12,000. The percent should be 7.25% of salary but she didn't think it should be double. Ms. Kiernan said she would double check the number.-I, ll/ coO L4 1 William Burns, City Manager, knew there was an increase but not that much. Commissioner Gabel noted that the TIF Districts and Professional Services exceed the budget for this year. She asked what was included in the professional services and if the budget should be increased for 2012. Ms. Kiernan answered that in 2011 Ehlers and Associates had to do some extra work on the annual TIF reporting and had extenuating circumstances from the state which ended up spending extra time on those areas. Darin Nelson, Finance Director, added that the state auditor's office required this and staff does not see it happening again next year. Commissioner Gabel asked if it was a onetime charge. Mr. Nelson answered yes; a lot of extra time was spent on this audit. Ms. Kiernan noted that it was an additional expense staff wasn't expecting. Chairperson Commers questioned on page eight under professional services the actual expenditures were $7,400 this year but budget was only $1,200. He asked if next year's budget should be $7,500. Ms. Kiernan said those fees include a lot of expense for addressing the changes in the Medtronic TIF.agreement. Chairperson Commers asked why the $7,500 isn't put back in the budget and if it should reflect back as if it was a onetime deal. Housing and Redevelopment Authority Commission Meeting of December 1,2011 4 Paul Bolin,HRA Assistant Executive Director, said that there was a question between the dates as to when that expense came on. There was one date in our agreement,ne year as not county had ha d tes n and legislation had another date. Expenses will likely be there been resolved with that yet; the Medtronic/ Lake Pointe TIF district involves quite a bit more work than the others. Chairperson Commers asked what the difference was between if there add t onal expenses in general fund and professional services of$60,000. He asked each tax district. Ms. Kiernan answered yes; Mr. Casserly bills each district separately. Chairperson Commers asked what Mr. Casserly's total expenses were. Ms. Kiernan did not have that information but would get the total amount of Mr. Casserly's time back to the Authority. air Chairperson Commers asked on page two what funds were dedicated and what funds could be Ch p put together for general use. Ms.Kiernan said that the only ones that are not dedicated are Winfield and Onan. Chair erson Commers said that as far as general funds, if the HRA wanted to do something on P University they would be able to access Funds 100, 265, 456 and 45 . Ms. Kiernan answered yes. Commissioner Holm noted that District Fund 456 goes away in 2012 and District 458 in 2015. Chair erson Commers asked if in order to get the benefit on District Fund 456 if the funds had P to be expended before the end of 2012. Ms. Kiernan answered yes; funds would need to be transferred out to a project within that time frame. Commissioner Eggert asked about Castle Vision and the Home and Garden Show on page six and why it was over budget this year. Ms. Kiernan said that some of the items were coded into the wrong program but the actual numbers are around $13,000. Chairperson Commers asked where the income was reflected that was going back into the fund for the Home and Garden Show. w. Ms. Kiernan said that it is listed under other miscetlaneolssestimated at $23,000 which reflect There is a revenue of$22,870 for this year and next year profit of about$5,000. Housing and Redevelopment Authority Commission Meeting of December 1, 2011 5 Commissioner Holm asked how much of the cash balance was for unrestricted use and what the balance of District 468, Gateway East, was. Ms. Kiernan replied that it is still in the red. Commissioner Holm agreed but wondered if the revenue coming back was going into unrestricted funds. Ms. Kiernan was not sure and she would have to check with Jim Casserly or Greg Johnson. Commissioner Holm said that in the budget it looks like a profitable TIF District and we have invested more than what we are getting back. He was confused and asked Becky to could check with Jim or Greg on that item. Dr. Burns said that there is a difference between revenue and cash balance. This district shouldn't be a cash balance. Commissioner Holm said that if revenue is coming in, it should go back to the general fund with unrestricted use. We are getting paid back less than what we invested, but any funds received should go back to unrestricted use. Dr. Burns said that the funds may be showing as not transferrable. Commissioner Holm said that he understood the funds were not to be used as unrestricted. Chairperson Commers agreed that when you look at the funds on page 11 showing the tax levy and interest on investment earnings as revenues with the expenses being of professional services, it does raise an issue as to where the $29,000 goes. Staff will research and get back to the Authority. It is probably a simple answer. MOTION by Commissioner Gabel to approve the 2012 Budget. Seconded by Commissioner Holm. UPON VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Approve Fund Balance Policy Darin Nelson, Finance Director/Treasurer, said that there will be new components of the fund balance and no longer will there just be Reserved, Designated, and Undesignated. These changes are to governmental fund type definitions, specifically Special Revenue Funds, that will be effective for the 2011 calendar year. Mr. Nelson reviewed the following Fund Balance Definitions: — Nonspendable- Items not expected to be converted to cash (i.e. inventory, n prepaid items, land held for resale) — Restricted - Externally imposed constraint(i.e. external parties such as creditor, grantor, government, etc.) Housing and Redevelopment Authority Commission Meeting of December 1, 2011 6 — Committed - Requires Board action (i.e. Mortgage interest earning revenues committed for on-going home improvement loans) — Assigned - Board authorizes the Executive Director, Asst. Executive Director and/or Finance Director to assign fund balance (i.e. interest earnings within a Special Revenue or Capital Projects Fund) — Unassigned - Available for any purpose, reported only in General Fund. Mr. Nelson said that Special Revenue Funds Statement 54 Definition are special revenue funds used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specific purposes other than debt service and capital projects. In essence, one or more restricted or committed revenues should be the foundation for a special revenue fund and comprise a substantial portion of the fund's revenues. The Housing Loan Fund is the only fund that fits this definition. Mr. Nelson said that in addition to changing Fund Balance definitions and tightening Special Revenue Fund uses, GASB 54 also requires a fund balance policy to be implemented for the General and Special Revenue funds. Even though the Board and staff are routinely monitoring cash and fund balances, the HRA has not had a formal fund balance policy in place. Not having a fund balance policy in the past is not detrimental. In fact, traditional fund balance policies do not necessarily apply to the HRA due to the uniqueness of our operations. Mr. Nelson said that determining an appropriate fund balance level for each of these funds is very arbitrary. The General Fund needs to have sufficient funds to cover general operating expenditures, at least 50% of the subsequent year's operating budget. It also needs to have necessary working capital to subsidize the beginning stages of potential redevelopment projects. The Housing Loan Special Revenue Fund balance level needs to be sufficient to support the revolving home loan program. Mr. Nelson said that establishing specific fund balance amounts or percentages for both of these funds is not nearly as important as continuing to monitor current and future cash flow trends to ensure sufficient reserve levels are available to meet demands, which both the Authority and staff are currently doing. Mr. Nelson said that the new fund balance policy also needs to authorize Executive Director, Asst. Executive Director and/or Finance Director to assign fund balance to reflect the HRA's intended use of funds. This does not change the authority to actually spend resources, but only to assign resources from a presentation standpoint only. Mr. Nelson said that the policy also needs to include how the HRA intends to use its resources when multiple categories of fund balance are available. When both Restricted and Unrestricted resources are available, it will be the HRA's policy to first use restricted resources. When unrestricted resources are available, it will be the HRA's policy to use resources in the following manner. 1. Committed 2. Assigned 3. Unassigned Mr. Nelson said that these changes will not affect how the HRA conducts business. All of these changes will be from a presentation standpoint within the City's Comprehensive Annual Housing and Redevelopment Authority Commission Meeting of December 1, 2011 7 Financial Report (CAFR) only. Staff recommends the Authority pass a motion approving the Fridley HRA Fund Balance Policy (Action Item #4). Staff also recommends the Authority pass Resolution 2011-12 committing specific revenue sources in the Housing Loan Special Revenue Fund (Action Item #5). Commissioner Holm said that there are now five accounts; nonspendable, restricted, committed, assigned and unassigned; basically subaccounts of unrestricted fund balances so we still have three categories. Mr. Nelson answered yes; but nothing will be classified as unrestricted. Commissioner Holm suggested in the second paragraph under General Fund to add the word meet so it reads: In addition to this minimum amount needed to meet cash flow general operations... And to eliminate the sentence that reads: Therefore, determining what an appropriate fund balance is becomes arbitrary. Chairperson Commers said that the HRA may have more than what is needed to meet the 50% requirement. Mr. Nelson said that maybe correct but 50% is in there plus whatever direction the Authority wants to go. He did not want to constraint the budget. Commissioner Holm suggested that under definitions for non spendable fund balance to place a comma after intact and semicolon after for example so it reads: Amounts that are not in a spendable form or are required to be maintained intact,for example; inventory, long term receivables and prepaids. Chairperson Commers said that as he understands the resolution, at any time the HRA can bring forth a motion to change where the funds go in the housing fund. The interest is dedicated but we can make changes by a motion. Mr. Nelson answered that changes would have to be done by a resolution. We have the option of assigning interest earned; mortgage interest from the loans. Those funds are committed and we can roll that into future housing loans. Chairperson Commers asked if funds can be assigned to a different project if the resolution is passed. Mr. Nelson answered yes. Chairperson Commers asked what this really accomplishes. Mr. Nelson said that the GASB 54 would tighten up special revenue definitions. This does not allow the Authority to have undesignated funds. This will make things more comparable from city to city. MOTION by Commissioner Holm to approve the GASB 54 Fund Balance Policy with the revised comments as discussed. Seconded by Commissioner Gabel. Housing and Redevelopment Authority Commission Meeting of December 1,2011 10 INFORMATIONAL ITEMS rm.\ 1. Housing Replacement Program Update Paul Bolin, HRA Assistant Executive Director, said that Veit completed the demolition work on November 18. Tomorrow morning we will close a bit of mold Street. on the inside.does nside. The home will purchased for $47,000 and the home q be a candidate for tear down late winter or early spring• Staff d fferent propertiesW There has been demolition at the same time. Staff will continue to look for a slow down on homes available for sale and banks are not ebg00,000.ers of homes out of foreclosure. Currently there are not a lot of homes available below $ Chairperson Commers asked if a price has been established for the vacant land. Mr. Bolin answered no; there is not a firm price. Commissioner Gabel was impressed how the homes were torn down so efficiently; everything was confined and well managed. 2. Housing Loan Program Update d Paul Bolin,HRA Assistant Executive Director, said that inNo November one tRLF loan a t was o ed making a total of 10 loans closed year to date. There was one el year to date. traf ing up. Mr. Bolin said that the home on 2"d Street o three and showings has said thle home is overpriced at Comments on the home have been very positivee $139,900. We will continue to market the home at this price nd c goes down of the year;nta s a then it's time to reduce the price. Staff is optimistic it wi ll sell before the e unique home and nothing like this is on the market. Commissioner Meyer asked if there was any penalty if the house does not sell before the end of the year. Mr. Bolin answered no but the city will have to keep the driveway collected a plowed,ed, sid w 11 clear ar and ed pay the heat bill. This will not affect the increment that until the home is sold. Commissioner Meyer thought it may be best to hold off on any price changes until spring when the housing market usually picks up. Mr. Bolin said that if the trend continues where the values keep dropping, we may have to do something. Staff will keep a close watch. Mr. Bolin said that the listing agreements were signed for the properties on University Avenue. Premier spent time with staff trying to figure out from a zoning perspective what kind of users could use this space. They will be targeting certain types of groups. Mr. Bolin said that the other property on University Avenue at 5725 Third Street may be listed on MLS by the end of this week. They have a concept plan to use when marketing this property. Housing and Redevelopment Authority Commission Meeting of December 1, 2011 11 �..� A two bedroom, one bath with an unfinished basement where there will be room for a third bedroom and family room. As they find a buyer the plan could change. Any home design needs to be approved by the Authority before moving forward. Mr. Bolin said that a map of the shuttle route for metro transit will run as a demo program trial. A 30' bus will meet every train and shuttle people to Unity Hospital, Holly Center, Cummins, Onan, and Medtronic Rice Creek Campus. Details are still being worked out on the exact schedule and route. Any comments can be sent to Bill or Paul. Commissioner Gabel asked if this shuttle will be advertised so people are aware this is going on. Mr. Bolin said he was not sure what marketing efforts would be done. William Burns, City Manager, said it will be mentioned in the news letter and in a video that was done featuring Dr. Burns. Mr. Bolin reminded the Authority of the North Metro Home and Garden Show on Saturday, February 25, 2012 at the Schwans Center in Blaine from 9:00 a.m. —2:00 p.m. ADJOURNMENT MOTION by Commissioner Gabel to adjourn. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:30 P.M. Respectfully Submitted, ��i2�tlG fnBn Krista Monsrud, Recording Secretary 1 t esignation of Official Depositories Annually the City and HRA designates an official bank. Wells Fargo has been the official bank for the both the City and HRA for a number of years. • Responsive and easy to work with • Flexible with investment management Staff recommends approval of the resolution designating Wells Fargo as the official depository for the Authority. AKACTION ITEM HRA MEETING OF JANUARY 5, 2011 - / FRIDLEY To: William W. Burns, Executive Director Paul Bolin, Asst. Executive Director From: Darin R.Nelson, Finance Director Rebecca Kiernan, Accounting Specialist Date: December 28, 2011 Re: Resolution Designating Official Depositories Attached is a resolution appointing Wells Fargo Bank Minnesota N.A. as the City's official depository for 2012. This has been a traditional housekeeping task in the past. We like to designate our banks on an annual basis. . s'm- e, • th.. :'' 'anal .. .-: dr.,•:• . n b- of. -.rs ago, but . his t'• e I. • - . r-'• . - ••- s The service we receive has been good; Wells Fargo Bank Minnesota N.A. has been responsive to our requests for information and does provide extensive internet services of which the City of Fridley and the Fridley Housing and Redevelopment Authority uses extensively. In using Wells Fargo Bank Minnesota N.A., we are able to invest idle cash on a daily basis with minimum costs to the City. We are able to determine daily needs and invest the balance in a money market account with Wells Fargo and other institutions. If we were to change the provider for the banking services, we would need to change the method in which we invest idle funds and the ease in which we make deposits. Staff recommends a motion adopting a resolution designating official depositories for the Fridley Housing and Redevelopment Authority. n 5 RESOLUTION NO.HRA 2012-01 RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES FOR THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY I, Darin R. Nelson, do hereby certify that I am Finance Director-Treasurer of the Housing and Redevelopment Authority in and for the City of Fridley, a corporation organized under the laws of the State of Minnesota. I further certify that at a meeting of said corporation duly and properly called and held on the 5th of January, 2012, the following resolution was passed, that a quorum was present at said meeting, and that said resolution is set forth in the minutes of the meeting and has not been rescinded or modified. IT IS HEREBY RESOLVED, that Wells Fargo Bank Minnesota N.A. is hereby designated as a depository for the funds of this corporation. IT IS FURTHER RESOLVED, that checks, drafts, or other withdrawal orders issued against the funds of this corporation on deposit with said bank shall be signed by two of the following: Darin R.Nelson, Finance Director-Treasurer Alan D. Folie,Assistant Finance Director William W. Burns, Executive Director And that said bank is hereby fully authorized to pay and charge to the account of this corporation any checks, drafts,or other withdrawal orders. BE IT FURTHER RESOLVED, that Wells Fargo Bank Minnesota N.A as a designated depository of the corporation is hereby requested, authorized, and directed to honor checks, drafts, or other orders for the payment of money drawn in this corporation's name, including those drawn to the individual order of any person or persons whose name or names appear thereon as signer or signers thereof, when bearing or purporting to bear the facsimile signatures of two of the following: Darin R.Nelson, Finance Director-Treasurer Alan D. Folie, Assistant Finance Director William W. Burns, Executive Director And Wells Fargo Banks shall be entitled to honor and to charge this corporation for all such checks, drafts, or other orders, regardless of by whom or by what means the facsimile signature or signatures thereon may have been affixed thereto, if such facsimile signature or signatures resemble the facsimile specimens duly certified to or filed with Norwest Banks by the City Clerk or other officer of his corporation. BE IT FURTHER RESOLVED, that any and all resolutions heretofore adopted by the Housing and Redevelopment Authority of the corporation and certified to as governing the operation of this corporation's account(s) with it, be and are hereby continued in full force and effect, except as the same may be supplemented or modified by the foregoing part of this resolution. HRA Resolution 2012-01 Page 2 BE IT FURTHER RESOLVED, that all transactions, if any relating to deposits, withdrawals, re- discounts, and borrowings by or on behalf of this corporation with said bank prior to the adoption of this resolution be, and the same hereby are, in all things ratified, approved, and confirmed. BE IT FURTHER RESOLVED, that any bank or savings and loan may be used as depositories for investment purposes as long as the investments comply with authorized investments as set forth in Minnesota Statutes. BE IT FURTHER RESOLVED, that the signatures of two of the following named City/HRA employees are required for withdrawal of City investment funds from savings and loan associations: Darin R.Nelson, Finance Director-Treasurer Alan D.Folie, Assistant Finance Director William W. Burns, Executive Director BE IT FURTHER RESOLVED, that any brokerage firm may be used as a vendor for investment purposes as long as the investments comply with the authorized investments as set forth in Minnesota Statutes. I further certify that the Board of this corporation has, and at the time of adoption of said resolution had, full power and lawful authority to adopt the foregoing resolutions and to confer the powers therein granted to the persons named who have full power and lawful authority to exercise the same. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 5th DAY OF JANUARY,2012. LAWRENCE R. COMMERS, CHAIRPERSON A I"PEST: WILLIAM W. BURNS, EXECUTIVE DIRECTOR • Fridley Housing and Redevelopment FAuthority mi nor F MEMORANDUM DATE: December 21, 2011 TO: William W. Burns, Executive Director of HRA FROM: Paul Bolin,Assistant HRA Director SUBJECT: Approval of Mowing Contractor for 2012 Introduction Last winter the HRA participated with the City in soliciting bids for mowing services and Passau Lawn Care had the lowest pricing. In addition to a number of private contractors, the City of Fridley's Park Maintenance Division was also asked to bid on the Authority properties. Passau Lawn Care was awarded the contract for the 2011 mowing season. HRA and City Staff were pleased with Passau Lawn Care's work this past summer. The rates were relatively low and the service very reliable. Passau Lawn Care has agreed to a contract extension to provide mowing services for the same rate as last year. Recommendation Staff recommends that the Authority contract with Passau Lawn Care for the 2012 summer season. Not only will we continue to receive very reliable service from Passau Lawn Care, it will be provided at the same cost as last year. 2012 Mowing Contract City of Fridley HRA THIS AGREEMENT EXTENSION is made this 5th day of January, 2012 by and between the Housing and Redevelopment Authority in and for the City of Fridley,Anoka County, Minnesota(hereinafter called the "HRA") and Passau Inc. (hereinafter called the "Contractor"). The Contract Term of the contract dated May 1, 2011 is hereby extended another year to December 31, 2012.The HRA may cancel all or any part of this contract upon thirty(30) days written notice. With the consent of both parties,this contract may be extended for one additional one-year period. Executed as of the day and year first above written. City of Fridley HRA Passau,Inc. By By Its Executive Director Its (W n • MONROE 8000 Norman Center Drive T 952.885.5999 MOXNESS Suite 1000 F 952.885.5969 /'N t BERG Minneapolis,MN 55437-1178 www.MMBLawFimi.ccm James R.Casserly jcasserly@mmblawfirm.com Direct 952.885.1296 MEMORANDUM TO: Fridley Housing Redevelopment Authority Attn: Paul Bolin, HRA Assistant Executive Director Attn: Scott Hickok, Community Development Director Attn: William Burns, Executive Director FROM: Monroe Moxness Berg PA James Casserly, Esq. Sevenich, Butler, Gerlach & Brazil, Ltd. Greg D. Johnson, CPA DATE: December 28, 2011 RE: RER Site Tax Increment Analysis Our File No. 9571-77 We have prepared a tax increment analysis of the development proposed on the RER, formerly BAE Site, by Real Estate Recycling (RER). This is a 136 acre site currently valued at $15 million. After construction of 1,750,000 sq. ft. of commercial development valued at $50 per sq. ft., the assessed value upon completion would be $87.5 million. The attached five page report summarizes the analysis we have done for this project. Page 1 Tax Increment Assumptions 2 Cash Flow & Present Value Analysis (Tax Increment Projections) 3 Tax Increment Generated by a Hazardous Substance Subdistrict 4 Sources and Uses Schedule (Redevelopment Costs and Source of Funding) 5 Pie Chart showing Distribution of Each Tax Dollar Upon Completion Page 1 — Assumptions — 250,000 sq. ft. of development is projected to occur each year for seven years. Using the Pay 2012 Truth-in-Taxation rates, annual taxes upon completion would be $3.2 million. Annual tax increment would be about half this amount at $1.6 million. A Hazardous Substance Subdistrict would add an additional $338,000 of tax increment each year to help pay for clean-up costs. Page 2 — Cash Flow and Present Value Analysis — Column (e) shows the semi- annual tax increment generated by this development. Over a 26 year period $37 million of tax increment is generated. Assuming 10% admin fees (column (f)), $33.3 million is available for project expenses (column (g)). The present value of this amount at a 6% present value rate is $13.4 million (column i)). No inflation has been assumed. Page 3 — Hazardous Substance Subdistrict (HSS) - Because of the substantial remediation costs involved with this Site, RER is requesting that the Authority and the City establish a HSS. Listed below are the characteristics of a HSS. A. Qualifying Parcels: parcels for which there is a state-approved development action response plan and for which an agreement has been entered into for removal actions or remedial actions. B. TIF Expenditures: - removal or remedial actions due to hazardous substances, pollutants, contaminants or petroleum releases - pollution testing - demolition - soil compaction correction - administrative and legal costs - PCA review and approval of the development response action plan -environmental insurance C. Duration: the lesser of 25 years from date of receipt of first tax increment or the time necessary to recover the costs of removal/remedial actions. The tax increment results from reducing the base of the HSS to zero and then using its current market value for calculating the tax increment. The revenues generated by an HSS are not tax increment in the traditional sense because the Authority is capturing the existing tax capacity of the Site. An HSS is the only example in general law in which tax increment actually reduces tax capacity available to other taxing jurisdictions. Because the revenues from an HSS may only be spent on remediation and the district can last only as long as is necessary to pay for the remediation, the legislature has continuously supported the use of HSS revenues to assist in the redevelopment of polluted properties. As the Cash Flow demonstrates the potential amount of tax increment that may be collected over the life of the HSS should be approximately $8.8 million. This amount is circled on the bottom of column (e). After the HRA's administrative fees are deducted the total of the available tax increment, as shown in column (g), is $7.9 million which has a present value of$3.5 million as shown in column (i). Page 4 — Sources and Uses — There are $54.2 million in redevelopment costs identified by the developer. These include relocation of existing tenants, demolition of existing structure, environmental remediation of the site, and public infrastructure costs. Under the sources, we have calculated that $16.9 million would be available from all tax increment, including the HSS. The developer is projecting that $33.1 million could be obtained as grants from various government agencies, including DEED, Met Council, and Anoka County. A developer match of $2.5 million is also assumed, which is a requirement of the grant funding. A deficit of $1.6 million is currently shown, which is less than 3% of estimated costs. Page 5 — Pie Chart- Distribution of Taxes Upon Completion — Available tax increment generated from this development for project expenses represents 46% of each tax dollar paid by this development. The HSS contributes another 9%. The HRA is estimated to retain about 6% or $197,000 annually. The State represents a significant portion of each tax dollar. The State's annual share is $910,000, or 28% of the total taxes. The school district, in the form of Market Value Referendums, will receive $154,000 annually. The Sources and Uses needs further refinement and the project requires substantial discussion. Please consider this a preliminary report. JRC/rl Attachments MMB:4823-6426-1134,v. 1 Page 1 CITY OF FRIDLEY Real Estate Recycling Site-TIF#21 /""N ASSUMPTIONS ■ ■ MEM N_---- Area of Parcel 2011 Assessed Value(Pay 2012) Original Market Values PIN# Owner (Acres) (Sq.Feet) Land Building Total 4800 E River Rd NE 27-30-24-13-0002 ELT Minnea•.lis LLC 80.40 3,502,224 4,444,900 6,109,800 10,554,700 4800 E River Rd NE 27-30-24-42-0002 ELT Minnea..lis LLC 41.69 1,816,016 2,128,600 2,351,000 4,479,600 E River Rd NE 27-30-24-43-0002 BAE S tems Land&Armaments 13.71 597,208 39,100 39,100 ®-fi■1111•11111111111111111■1111®®®®® Totals ---- 135.80 5,915,448 $ 6,612,600 $ 8,460,800 $ 15,073,400 __----- 0 1.12 2.55 . Land per sq.ft. Total per sq ft Original Tax Capacity %of new ETC-- Class Rate- 301,468 !Commercial/Retail -- 100.0% 15,073,400 @ 2.00% 301,468 ■_■_�� Development Years Years Years Years Years Years Years Years i E_- Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 (___Costs Incurred 2012 2013 2014 ----- 1=1__Construction 2013 2014 2015 2016 2017 2018 2019 2020 1111=Valuation 2014 2015 2016 2017 2018 2019 2020 2021 ®M_Tax Increment 2015 2016 2017 2018 2019 2020 2021 2022 I EMI Annual._--------- ;New Commercial Building Sq.Ft 250,000 250,000 250,000 250,000 250,000 250,000 250,000 0 Value per Sq.Ft. $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 !Estimated Market Value $12,500,000 $12,500,000 $12,500,000 $12,500,000 $12,500,000 $12,500,000 $12,500,000 $0 ;Estimated Tax Capacity 250,000 250,000 250,000 250,000 250,000 250,000 250,000 0 ;Estimated Taxes 459,851 459,851 459,851 459,851 459,851 459,851 459,851 0 umulative 1/2 Building Tom Down ;Existing Building $ 4,230,400 $ 4,230,400 Remaining ildin Down-== I :Undeveloped Land $ 5,667,943 $ 4,723,286 $ 3,778,629 $ 2,833,971 $ 1,889,314 $ 944,657 $ _ i New Commercial Building Sq.Ft 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 1,750,000 (Value per Sq.Ft. $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 'Estimated Market Value $12,500,000 25,000,000 37,500,000 50,000,000 62,500,000 75,000,000 87,500,000 $87,500,000 __---------I ' ;Total Estimated Market Value $ 22,398,343 33,953,686 41,278,629 52,833,971 64,389,314 75,944,657 87,500,000 $87,500,000 'Estimated Tax Capacity 447,967 679,074 825,573 1,056,679 1,287,786 1,518,893 1,750,000 1,750,000 Estimated Taxes 823,993 1,249,092 1,518,563 1,943,662 2,368,761 2,793,860 3,218,959 3,218,959 1 'Tax Increment-Annual 164,605 424,274 588,879 848,548 1,108,218 1,367,887 1,627,557 1,627,557 I Tax Increment Annual 338,727 338,727 338,727 338,727 338,727 338,7200 Tax Rates ME Local Tax Rate-Pay 2012 TNT ISD#13;6 Cities 1.12765 (Market Value Referendum 154,000 4.8%; State Tax Rate-Pay 2012 TNT 0.52000 (C/I only) -'State General Taxes 910,000 28.3%, I Eff.Incr.on local tax rate for taxes at F.D.rate 0.10376 I --'Fiscal Dis•arit 181,572 5.6% Combined Tax Rate-C/I Property Only 1.75141 --lAdmin Fees 197,339 6.1%1 SIM *used for tax increment calculations -I Hazardous Substance Subdist 305,955 9.5%' 111111__-----Available Tax Increment 1,470,093 45.7%1 Assumptions --_--I Total Property Taxes 3,218,959 100.0% 'Market Value Referendum Taxes 0.17600% Pa 2012 TNT ;Fiscal Dis.arities Metro Wide Tax Rate 1.41945 Pa 2012 TNT ---- 'Fiscal Dis.arities Ratio 35.5570% Pa 2012 TNT ---- IAdmin Fees -- 10.00%- ---- State Auditor Fee 0.360%--- )Inflation _-- 0.00% Present Value Rate 12/1/2012 6.00%------ �\ BAE Site 2012a.xlsx Prepared by Sevenich,Butler,Gerlach&Brazil,Ltd. 12/29/2011 --• Page 2 CITY OF FRIDLEY Real Estate Recycling Site-TMEV CASH FLOW AND PRESENT VALUE;YSIS I".•■ <-------- ANNUAL --- > _ (a) (b) (c) (d) (e) (f) (9) (h) (i) G) Original Estimated Captured Est.T.I. Less: Available Cumulative <--Present Value----> Tax Tax Tax d x Admin/Pro• Tax Avail.Tax Semi Annual Cumulative Date Capacity Capacity Capacity 1.12765 Fees Increment Increment Balance ' Balance (see assum•tions) (c - b) St.Aud.Fe; (e)x (e)-(f) Total of(•) P.V.of(g) 1 Total of(i) 0.0%Inflation (prey.year) 0.360% 10.00% 6.00%12/01/12 06/01/12 301,468 301,468 0 0 0 0 0 0 12/01/12 301,468 301,468 0 0 0 0 0 0 06/01/13 301,468 301,468 0 0 0 0 0 0 t 0 12/01/13 301,468 301,468 0 0 0 0 0 0 0 06/01/14 301,468 447,967 0 0 0 0 0 0 0 12/01/14 301,468 447,967 0 0 0 0 0 0 0 1 06/01/15 301,468 679,074 146,499 82,302 8,230 74,072 74,072 63,895 63,895 12/01/15 301,468 679,074 146,499 82,302 8,230 74,072 148,144 62,034 125,930 2 06/01/16 301,468 825,573 377,606 212,137 21,214 190,923 339,068 155,238 281,168 12/01/16 301,468 825,573 377,606 212,137 21,214 190,923 529,991 150,717 431,884 3 06/01/17 301,468 1,056,679 524,105 294,439 29,444 264,996 794,987 203,097 634,981 12/01/17 301,468 1,056,679 524,105 294,439 29,444 264,996 1,059,982 197,182 832,163 4 06/01/18 301,468 1,287,786 755,211 424,274 42,427 381,847 1,441,829 275,854 1,108,017 12/01/18 301,468 1,287,786 755,211 424,274 42,427 381,847 1,823,676 267,820 1,375,837 5 06/01/19 301,468 1,518,893 986,318 554,109 55,411 498,698 2,322,374 339,589 1,715,426 12/01/19 301,468 1,518,893 986,318 554,109 55,411 498,698 2,821,072 329,698 2,045,124 6 06/01/20 301,468 1,750,000 1,217,425 683,944 68,394 615,549 3,436,621 395,098 2,440,222 12/01/20 301,468 1,750,000 1,217,425 683,944 68,394 615,549 4,052,170 383,590 2,823,812 7 06/01/21 301,468 1,750,000 1,448,532 813,778 81,378 732,401 4,784,571 443,114 3,266,926 12/01/21 301,468 1,750,000 1,448,532 813,778 81,378 732,401 5,516,971 430,208 3,697,134 8 06/01/22 301,468 1,750,000 1,448,532 813,778 81,378 732,401 6,249,372 417,678 4,114,812 12/01/22 301,468 1,750,000 1,448,532 813,778 81,378 732,401 6,981,772 405,512 4,520,324 9 06/01/23 301,468 1,750,000 1,448,532 813,778 81,378 732,401 7,714,173 393,701 4,914,026 1 12/01/23 301,468 1,750,000 1,448,532 813,778 81,378 732,401 8,446,573 382,234 5,296,260 10 06/01/24 301,468 1,750,000 1,448,532 813,778 81,378 732,401 9,178,974 371,101 5,667,361 12/01/24 301,468 1,750,000 1,448,532 813,778 81,378 732,401 9,911,374 360,293 6,027,654 11 06/01/25 301,468 1,750,000 1,448,532 813,778 81,378 732,401 10,643,775 349,799 6,377,452 12/01/25 301,468 1,750,000 1,448,532 813,778 81,378 732,401 11,376,175 339,610 6,717,063 12 06/01/26 301,468 1,750,000 1,448,532 813,778 81,378 732,401 12,108,576 329,719 7,046,781 12/01/26 301,468 1,750,000 1,448,532 813,778 81,378 732,401 12,840,976 320,115 7,366,897 13 06/01/27 301,468 1,750,000 1,448,532 813,778 81,378 732,401 13,573,377 310,792 7,677,688 12/01/27 301,468 1,750,000 1,448,532 813,778 81,378 732,401 14,305,778 301,739 7,979,427 14 06/01/28 301,468 1,750,000 1,448,532 813,778 81,378 732,401 15,038,178 292,951 8,272,378 12/01/28 301,468 1,750,000 1,448,532 813,778 81,378 732,401 15,770,579 284,418 8,556,796 15 06/01/29 301,468 1,750,000 1,448,532 813,778 81,378 732,401 16,502,979 276,134 8,832,931 12/01/29 301,468 1,750,000 1,448,532 813,778 81,378 732,401 17,235,380 268,091 9,101,022 1 16 06/01/30 301,468 1,750,000 1,448,532 813,778 81,378 732,401 17,967,7801 260,283 9,361,305 12/01/30 301,468 1,750,000 1,448,532 813,778 81,378 732,401 18,700,181 252,702 9,614,007 17 06/01/31 301,468 1,750,000 1,448,532 813,778 81,378 732,401 19,432,581 245,342 9,859,349 12/01/31 301,468 1,750,000 1,448,532 813,778 81,378 732,401 20,164,982 238,196 10,097,545 18 06/01/32 301,468 1,750,000 1,448,532 813,778 81,378 732,401 20,897,382 231,258 10,328,803 12/01/32 301,468 1,750,000 1,448,532 813,778 81,378 732,401 21,629,783 224,522 10,553,325 19 06/01/33 301,468 1,750,000 1,448,532 813,778 81,378 732,401 22,362,183 217,983 10,771,308 12/01/33 301,468 1,750,000 1,448,532 813,778 81,378 732,401 23,094,584 211,634 10,982,942 20 06/01/34 301,468 1,750,000 1,448,532 813,778 81,378 732,401 23,826,984 205,470 11,188,412 12/01/34 301,468 1,750,000 1,448,532 813,778 81,378 732,401 24,559,385 199,485 11,387,897 21 06/01/35 301,468 1,750,000 1,448,532 813,778 81,378 732,401 25,291,786 193,675 11,581,572 12/01/35 301,468 1,750,000 1,448,532 813,778 81,378 732,401 26,024,186 188,034 11,769,606 22 06/01/36 301,468 1,750,000 1,448,532 813,778 81,378 732,401 26,756,587 182,557 11,952,163 12/01/36 301,468 1,750,000 1,448,532 813,778 81,378 732,401 27,488,987 177,240 12,129,403 23 06/01/37 301,468 1,750,000 1,448,532 813,778 81,378 732,401 28,221,388 172,078 12,301,481 12/01/37 301,468 1,750,000 1,448,532 813,778 81,378 732,401 28,953,788 167,066 12,468,547 24 06/01/38 301,468 1,750,000 1,448,532 813,778 81,378 732,401 29,686,189 162,200 12,630,746 12/01/38 301,468 1,750,000 1,448,532 813,778 81,378 732,401 30,418,589 157,475 12,788,222 25 06/01/39 301,468 1,750,000 1,448,532 813,778 81,378 732,401 31,150,990 152,889 12,941,111 /"'N., 12/01/39 301,468 1,750,000 1,448,532 813,778 81,378 732,401 31,883,390 148,436 13,089,546 26 06/01/40 301,468 1,750,000 1,448,532 813,778 81,378 732,401 32,615,791 144,112 13,233,659 12/01/40 301,468 1,750,000 1,448,532 813,778 81,378 732,401 33,348,191 13,915 13,373,574 437,053,546 3,705,355 nene>=211111NEEMP 13,373,574 NPV 6.00% 12/01/12 14,859,526 1,485,953 13,373,574 1 BAE Site 2012a.xlsx Prepared by Sevenich,Butler,Gerlach&Brazil,Ltd. 12/29/2011 Page 3 CITY OF FRIDLEY 4 a BAE Site CASH FLOW AND PRESENT VALUE ANALYSIS-Hazardous Substance Subdistrict <--------- ANNUAL ----> < ------- SEMI-ANNUAL-- ---------- --------> (a) (b) (c) (d) (e) (f) (9) (h) (i) (I) i-"\ Original Estimated Captured Est.T.I. Less: Available Cumulative <----Present Value----> Tax Tax Tax d x Admin/Pr.. Tax Avail.Tax Semi Annual Cumulative Date Capacity Capacity Capacity 1.12765 Fees Increment Increment Balance Balance (see assum.tions) (c)-(b) i-St.Aud.Fe- (e)x (e)-(f) Total of(g) P.V.of(g) I Total of(i) 0.0% Inflation (prey.year) 0.360% 10.00% 6.00%112/01/12 06/01/12 0 0 0 0 0 0 0 I 0 12/01/12 0 0 0 0 0 0 01 0 06/01/13 0 0 0 0 0 0 0 0 I 0 12/01/13 0 0 0 0 0 0 0 0 0 06/01/14 0 301,468 0 0 0 0 0 0 0 12/01/14 0 301,468 0 0 0 0 0 0 0 1 06/01/15 0 301,468 301,468 169,363 16,936 152,427 152,427 131,4851 131,485 12/01/15 0 301,468 301,468 169,363 16,936 152,427 304,854 127,655 259,140 2 06/01/16 0 301,468 301,468 169,363 16,936 152,427 457,281 123,937 383,077 12/01/16 0 301,468 301,468 169,363 16,936 152,427 609,708 120,327 503,404 3 06/01/17 0 301,468 301,468 169,363 16,936 152,427 762,135 116,823 620,227 12/01/17 0 301,468 301,468 169,363 16,936 152,427 914,562 113,420 733,647 4 06/01/18 0 301,468 301,468 169,363 16,936 152,427 1,066,989 110,116 843,763 12/01/18 0 301,468 301,468 169,363 16,936 152,427 1,219,416 106,909 950,673_ 5 06/01/19 0 301,468 301,468 169,363 16,936 152,427 1,371,843 103,795 1,054,468 12/01/19 0 301,468 301,468 169,363 16,936 152,427 1,524,270 100,772 1,155,240_ 6 06/01/20 0 301,468 301,468 169,363 16,936 152,427 1,676,697 97,837 1,253,077 12/01/20 0 301,468 301,468 169,363 16,936 152,427 1,829,123 94,987 1,348,065 7 06/01/21 0 301,468 301,468 169,363 16,936 152,427 1,981,550 92,221 1,440,285 12/01/21 0 301,468 301,468 169,363 16,936 152,427 2,133,977 89,535 1,529,820 8 06/01/22 0 301,468 301,468 169,363 16,936 152,427 2,286,404 86,927 1,616,747 12/01/22 0 301,468 301,468 169,363 16,936 152,427 2,438,831 84,395 1,701,142 9 06/01/23 0 301,468 301,468 169,363 16,936 152,427 2,591,258 81,937 1,783,079 12/01/23 0 301,468 301,468 169,363 16,936 152,427 2,743,685 79,550 1,862,630 10 06/01/24 0 301,468 301,468 169,363 16,936 152,427 2,896,112 77,233 1,939,863 12/01/24 0 301,468 301,468 169,363 16,936 152,427 3,048,539 74,984 2,014,847 /0-'4. 11 06/01/25 0 301,468 301,468 169,363 16,936 152,427 3,200,966 72,800 2,087,647 12/01/25 0 301,468 301,468 169,363 16,936 152,427 3,353,393 70,680 2,158,327 12 06/01/26 0 301,468 301,468 169,363 16,936 152,427 3,505,820 68,621 2,226,948 12/01/26 0 301,468 301,468 169,363 16,936 152,427 3,658,247 66,622 2,293,570 13 06/01/27 0 301,468 301,468 169,363 16,936 152,427 3,810,674 64,682 2,358,252_ 12/01/27 0 301,468 301,468 169,363 16,936 152,427 3,963,101 62,798 2,421,050 14 06/01/28 0 301,468 301,468 169,363 16,936 152,427 4,115,528 60,969 2,482,018 12/01/28 0 301,468 301,468 169,363 16,936 152,427 4,267,955 59,193 2,541,211 15 06/01/29 0 301,468 301,468 169,363 16,936 152,427 4,420,382 I 57,469 2,598,680_ 12/01/29 0 301,468 301,468 169,363 16,936 152,427 4,572,809 55,795 2,654,476 16 06/01/30 0 301,468 301,468 169,363 16,936 152,427 4,725,236 54,170 2,708,646 12/01/30 0 301,468 301,468 169,363 16,936 152,427 4,877,663 52,592 2,761,238 17 06/01/31 0 301,468 301,468 169,363 16,936 152,427 5,030,090 51,060 2,812,298 12/01/31 0 301,468 301,468 169,363 16,936 152,427 5,182,517 49,573 2,861,871 18 06/01/32 0 301,468 301,468 169,363 16,936 152,427 5,334,943 48,129 2,910,001 12/01/32 0 301,468 301,468 169,363 16,936 152,427 5,487,370 46,728 2,956,728 19 06/01/33 0 301,468 301,468 169,363 16,936 152,427 5,639,797 45,367 3,002,095 12/01/33 0 301,468 301,468 169,363 16,936 152,427 5,792,224 44,045 3,046,140 20 06/01/34 0 301,468 301,468 169,363 16,936 152,427 5,944,651 42,762 3,088,902 12/01/34 0 301,468 301,468 169,363 16,936 152,427 6,097,078 41,517 3,130,419 21 06/01/35 0 301,468 301,468 169,363 16,936 152,427 6,249,505 40,308 3,170,727 12/01/35 0 301,468 301,468 169,363 16,936 152,427 6,401,932 39,134 3,209,860 22 06/01/36 0 301,468 301,468 169,363 16,936 152,427 6,554,359 37,994 3,247,854 12/01/36 0 301,468 301,468 169,363 16,936 152,427 6,706,786 36,887 3,284,741 23 06/01/37 0 301,468 301,468 169,363 16,936 152,427 6,859,213 35,813 3,320,554 12/01/37 0 301,468 301,468 169,363 16,936 152,427 7,011,640 34,770 3,355,324 24 06/01/38 0 301,468 301,468 169,363 16,936 152,427 7,164,067 33,757 3,389,081 12/01/38 0 301,468 301,468 169,363 16,936 152,427 7,316,494 32,774 3,421,854 25 06/01/39 0 301,468 301,468 169,363 16,936 152,427 7,468,921 31,819 3,453,673 12/01/39 0 301,468 301,468 169,363 16,936 152,427 7,621,348 30,892 3,484,566 26 06/01/40 0 301,468 301,468 169,363 16,936 152,427 7,773,775 29,993 3,514,559 ,,---\ 12/01/40 0 301,468 301,468 169,363 16,936 152,427 7,926,202 29,119 3,543,678 8,806,891 880,689 7,926,202 7,926,202 (I ► 3,543,678 NPV 6.00% 12/01/12 3,937,420 393,742 3,543,678 BAE Site 2012a.xlsx Prepared by Sevenich,Butler,Gerlach&Brazil,Ltd. 12/29/2011 . „ __, CITY OF FRIDLEY Page 4 Real Estate Recycling Site -TIF#21 SOURCES AND USES P\ SOURCES Tax Increment Present value on TI through 6/1/2040 @ 6.00% = 13,373,574 Tax Inc- HSS Present value on TI through 6/1/2040 @ 6.00% = 3,543,678 DEED Grant —62;Vs-'1 23,192,124 Anoka County ERF 9 'A it, g itty, QcAQ..4 - 4,973,602 Met Council Grant \ ,(9 -Z c / ,mop, 4,973,602 4,973,602 EPA `,v �, 0 Grants - Other 0 Developer Match on Grants �, \ 2,540,864 1 1 1 TOTAL SOURCES 52,597,443 USES i _ Relocation 500,000 Relocation , 500,000 Consultant services Contingency 0.0% 0 _ --- Clean-up -Site Investigation & Remediation 3,050,000 Initial Site Investigation 1,000,000 Supplemental Site Investigation 2,000,000 RAP/Workplan 50,000 Other 0 n Contingency 0.0%, 0 Clean-up - RAP Implementation 18,123,863 Soil Impacts 12,875,918 Groundwater 4,726,000 _Implementation Report 521,945 —_ Other 0 Contingency 0.0% 0 l Other Site Preparation Costs 15,131,329 Site Capping 11,131,329 Demolition, Restricted Wastes _ 4,000,000 Other _ 0 Contingency 0.0% _ 0 Public Improvements 17,375,000 Infrastructure 17,375,000 Other — 0 — Contingency 0.0% TOTAL USES 54,180,192 SURPLUS / (DEFICIT) (1,582,749) 1 1 BAE Site 2012a.xlsx Prepared by Sevenich, Butler, Gerlach & Brazil, Ltd. 12/29/2011 Real Estate Recycling Redevelopment Site 1,750,000 Bldg Sq. Ft; Property Taxes $3,218,959 Market Value Referendum, 154,000,5% • t.'4''''''''•4',i'41' k{in[1a 1 '' i Jai .i:Ili,i,•g4 #y iil, , 4r M . Iii}ti }i I',I�is `I 1 i i A�?ii a 'k }, i t s 1 ��II ey ,a i ' '' i s e, + 6g jF-i Iih� A { .. L k.LY t ii! i , LC ; '� 'ii i ��r i a i E i�t .!11i'iirirf#E� (} "3! �'i"i Iti` State General Taxes,910,000, --!e i1 i iJ i .li { : II11iit I11rJ 28% Ell}III{ i � il'i i �i l"igti6if X11 f �: ,� i iL�I kip Ei i i.i �Ia 1 d Available Tax Increment, r �� I i ,K 1 r i'�fl �I'Ai , }.. 1,470,093,46% ,yy tIi y i4i� ,,i t: E�}A��J{i}�i.ix��t 1i�+,r�.� i}3'�' !�� ,� �+'xi� I I.�I f li�lli� n,�91�� t'i ; a�-�! ,40 cal I+ �I!1; ,i,1, '� - ! f - �'4 iI h£tI�ry j'i ,f +f 1�I }1,3e 4. .CI I I * 4 y'f :k irr L Fv}'1 F A f +IIFK.,!' ` rl i1f r�f f�t i i l to 11,54;i ,r*i ,*ll! +T�ii I i17I'pq li I I,r 4 f ny ! i F € y ll c '! tisi �' il0 E 'II 'i i i, ....�*. I { i ;Ili i ,� �. Ns'M v i it i�l µs i s a Fiscal Disparity, 181,572,6% �r� 1 I V� 1 'i f,��'�� v7� iY , i i f 1! �ii frld a ' f'1 lII 1 :OE.. V �I f'�1,i 'Ii�, Adm. Fees, 197,339,6% /�� i u Hazardous Substance% Subdistrict,305,955,9% I Fridley HRA Housing Program Summary Cover Page January 5, 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. • 1 Ule__ (-10 << ctc s 6EE was + er -(� r r O v► v-- �int i rcfoz vvN.a.(--:ov- W11( H:\—Paul's Documents\HRA\I-IRA Agenda Items\2012\January 5,2012\Housing Program CoverPage.docx