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HRA 05/03/2012 F(pc MAY 3, 2012 HRA Meeting Regular Meeting Agenda 7:00 p.m. Call to order Roll call Action Items Action Items 1. Approval of expenditures 2. Approval of April 5, 2012 Meeting Minutes 3. Public Hearing and Consideration of Resolution Authorizing Sale of 6000 2nd Street NE 4. Public Hearing and Consideration of Resolution Authorizing Sale of 551 Hugo Street NE Informational Items 1. RER Project Update 2. Housing Loan Program Update Adjournment K:\COMMISSION AGENDAS\2012 HRA Commission Agendas\12 05 03docx.docxK:\COMMISSION AGENDAS\2012 HRA Commission Agendas\12 05 03docx.docx April,2012 ) Fridley HF )ecking Ac Its Payable Register Date Check# Vendor Invoice# Description Code Amount 4/9/2012 Center for Energy&Environment 10908 Marketing Services 265-0000-430-4334 111.08 Remodeling Advisor Visit-Pyka,Shermer,Youngmark 265-0000-430-4340 390.00 501.08 4/10/2012 Ehlers 2010 TIF report review with OSA 100-0000-430-4330 146.25 146.25 4/24/2012 Monroe Moxness Berg 129841 Adminsitration Fees 100-0000-430-4330 585.00 100-0000-430-4330-4606 11,083.35 11,668.35 4/16/2012 Passau,Inc. 4982 5725 3rd St NE 470-0000-430-4340 20.00 Mowed week of 4/12 5735 3rd St NE 470-0000-430-4340 20.00 5745 3rd St NE 470-0000-430-4340 20.00 5755 3rd St NE 470-0000-430-4340 20.00 5765 3rd St NE 470-0000-430-4340 20.00 5801 3rd St NE 470-0000-430-4340 20.00 5961 3rd St NE 470-0000-430-4340 35.00 281 57th Place 470-0000-430-4340 20.00 291 57th Place 470-0000-430-4340 20.00 521 Fairmont Ave 501-0000-430-4340 35.00 630 Ely St NE 501-0000-430-4340 35.00 434 Liberty St NE 501-0000-430-4340 35.00 611 Buffalo St NE 501-0000-430-4340 35.00 381 Ironton St 501-0000-430-4340 35.00 561 Ironton St NE 501-0000-430-4340 40.00 551 Hugo St NE 501-0000-430-4340 50.00 465 Mississippi St NE 501-0000-430-4340 50.00 6000 East River Road 501-0000-430-4340 60.00 5813-2 1/2 Street 470-0000-430-4340 30.00 5825-2 1/2 St NE 501-0000-430-4340 35.00 5833-2 1/2 Street 470-0000-430-4340 35.00 5845-2 1/2 Street 470-0000-430-4340 30.00 5670-95 Moore Lake Drive 455-0000-430-4340 35.00 6000 Main St NE 100-0000-430-4340 300.00 5831 University Ave NE 474-0000-430-4340 30.00 5865 University Ave NE 474-0000-430-4340 30.00 5905 University Ave NE 474-0000-430-4340 30.00 5925 University Ave NE 474-0000-430-4340 30.00 5943 University Ave NE 474-0000-430-4340 30.00 6005 University Ave NE 474-0000-430-4340 30.00 6041 University Ave NE 474-0000-430-4340 30.00 6061 University Ave NE 474-0000-430-4340 30.00 April, 2012 Fridley HRA Checking Accounts Payable Register Date Check# Vendor Invoice# Description Code Amount 6071 University Ave NE 474-0000-430-4340 30.00 Tax 100-0000-430-4340 89.72 1,394.72 4/22/2012 Sun Newspapers 16468 Legal Publication-2nd St NE Sale 501-0000-430-4334 47.03 Legal Publication-551 Hugo St NE Sale 501-0000-430-4334 47.03 94.06 4/19/2012 Passau,Inc. 4982 5725 3rd St NE 470-0000-430-4340 20.00 Mowed week of 4/19 5735 3rd St NE 470-0000-430-4340 20.00 5745 3rd St NE 470-0000-430-4340 20.00 5755 3rd St NE 470-0000-430-4340 20.00 5765 3rd St NE 470-0000-430-4340 20.00 5801 3rd St NE 470-0000-430-4340 20.00 5961 3rd St NE 470-0000-430-4340 35.00 281 57th Place 470-0000-430-4340 20.00 291 57th Place 470-0000-430-4340 20.00 521 Fairmont Ave 501-0000-430-4340 35.00 630 Ely St NE 501-0000-430-4340 35.00 434 Liberty St NE 501-0000-430-4340 35.00 611 Buffalo St NE 501-0000-430-4340 35.00 381 Ironton St 501-0000-430-4340 35.00 561 Ironton St NE 501-0000-430-4340 40.00 551 Hugo St NE 501-0000-430-4340 50.00 465 Mississippi St NE 501-0000-430-4340 50.00 6000 East River Road 501-0000-430-4340 60.00 5813-2 1/2 Street 470-0000-430-4340 30.00 5825-2 1/2 St NE 501-0000-430-4340 35.00 5833-2 1/2 Street 470-0000-430-4340 35.00 5845-2 1/2 Street 470-0000-430-4340 30.00 5670-95 Moore Lake Drive 455-0000-430-4340 35.00 6000 Main St NE 100-0000-430-4340 300.00 5831 University Ave NE 474-0000-430-4340 30.00 5865 University Ave NE 474-0000-430-4340 30.00 5905 University Ave NE 474-0000-430-4340 30.00 5925 University Ave NE 474-0000-430-4340 30.00 5943 University Ave NE 474-0000-430-4340 30.00 6005 University Ave NE 474-0000-430-4340 30.00 6041 University Ave NE 474-0000-430-4340 30.00 6061 University Ave NE 474-0000-430-4340 30.00 6071 University Ave NE 474-0000-430-4340 30.00 Tax 100-0000-430-4340 89.72 1' 4.72 ) ) April, 2012 ) Fridley HF )ecking Ac )Its Payable Register Date Check# Vendor Invoice# Description Code Amount 4/18/2012 Cenaiko Expo Inc Final Payment-Home&Garden Show 265-0000-430-4341 3,909.88 3,909.88 4/30/2012 Passau,Inc. 5010 5725 3rd St NE 470-0000-430-4340 20.00 Mowed week of 4/26 5735 3rd St NE 470-0000-430-4340 20.00 5745 3rd St NE 470-0000-430-4340 20.00 5755 3rd St NE 470-0000-430-4340 20.00 5765 3rd St NE 470-0000-430-4340 20.00 5801 3rd St NE 470-0000-430-4340 20.00 5961 3rd St NE 470-0000-430-4340 35.00 281 57th Place 470-0000-430-4340 20.00 291 57th Place 470-0000-430-4340 20.00 521 Fairmont Ave 501-0000-430-4340 35.00 630 Ely St NE 501-0000-430-4340 35.00 434 Liberty St NE 501-0000-430-4340 35.00 611 Buffalo St NE 501-0000-430-4340 35.00 381 Ironton St 501-0000-430-4340 35.00 561 Ironton St NE 501-0000-430-4340 40.00 551 Hugo St NE 501-0000-430-4340 50.00 465 Mississippi St NE 501-0000-430-4340 50.00 6000 East River Road 501-0000-430-4340 60.00 5813-2 1/2 Street 470-0000-430-4340 30.00 5825-2 1/2 St NE 501-0000-430-4340 35.00 5833-2 1/2 Street 470-0000-430-4340 35.00 5845-2 1/2 Street 470-0000-430-4340 30.00 5670-95 Moore Lake Drive 455-0000-430-4340 35.00 6000 Main St NE 100-0000-430-4340 300.00 5831 University Ave NE 474-0000-430-4340 30.00 5865 University Ave NE 474-0000-430-4340 30.00 5905 University Ave NE 474-0000-430-4340 30.00 5925 University Ave NE 474-0000-430-4340 30.00 5943 University Ave NE 474-0000-430-4340 30.00 6005 University Ave NE 474-0000-430-4340 30.00 6041 University Ave NE 474-0000-430-4340 30.00 6061 University Ave NE 474-0000-430-4340 30.00 6071 University Ave NE 474-0000-430-4340 30.00 Tax 100-0000-430-4340 89.72 1,394.72 April Invoice Total $ 20,503.78 CITY OF FRIDLEY n HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION April 5,2012 CALL TO ORDER: Chairperson Pro Tem Gabel called the BRA Meeting to order at 7:04 p.m. ROLL CALL: MEMBERS PRESENT: William Holm Pat Gabel Stephen Eggert MEMBERS ABSENT: Larry Commers John Meyer NONMEMBERS PRESENT: Paul Bolin,HRA Assistant Executive Director Becky Kiernan, Accountant William Burns, City Manager Darin Nelson, Finance Director/Treasurer Jim Casserly, Development Consultant Greg Johnson, Financial Analyst /\ Paul Hyde,Real Estate Recycling ACTION ITEMS 1. Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures as presented. Seconded by Commissioner Eggert. UPON VOICE VOTE,ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of March 1, 2012 Meeting Minutes MOTION by Commissioner Holm to approve the minutes as presented. Seconded by Commissioner Eggert. UPON VOICE VOTE,ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 3. Approval of Resolution Creating TIF District#20 and Hazardous Substance Subdistrict #20A Paul Bolin, HRA Assistant Executive Director, said that Real Estate Recycling(RER) is looking to purchase the BAE Site. Currently this site is heavily contaminated, has 2M sq. ft. of building and employs less than 400 people. RER's plan is to redevelop this area in phases to include City of Fridley Housing and Redevelopment Meeting of April 5,2012 2 1.6M sq. ft. of new office/showroom/industrial space, increase from $15M in value up to $75M and increase the jobs to 3,000. Mr. Bolin said that tonight staff is asking the HRA to adopt a Resolution modifying the City's redevelopment plan and the TIF plans for the existing districts; incorporating the project costs and increased bonding authority from the RER project. This will not create any financial obligation for the Authority or the City but permit the Authority to continue working on this Project to create a Redevelopment Agreement and eventually lead to Certification of the District. The District would not be active until it is certified by Anoka County and the County will not certify the district until the Development agreement is in place and the MPCA has approved a Remediation Action Plan(RAP). The RAP may not be fully developed and approved until this fall or early next year. Staff will wait to certify both the Redevelopment District#20 and the HSS Subdistrict#20A until the MPCA approves the RAP. Mr. Bolin said that Staff recommends approval of the resolution modifying the existing TIF Plans and creating TIE' District#20 and HSS #20A. The City Council will hold a public hearing and be asked to adopt a similar resolution on Monday, April 9th Chairperson Pro Tem Gabel asked why this needs to be done now versus waiting until more information is known; she asked if RER needed this action approved for the purchase agreement. Paul Hyde,Real Estate Recycling, said that they have managed to extend the purchase agreement with the seller through June 20 which allows enough time to put together a tax increment packet to pay for a portion of the redevelopment cleanup of this site. RER has made good progress with the anchor tenant BAE to talk about a new building on the site. RER will be compiling information over the coming weeks regarding the costs affiliated with this $100M redevelopment. The site cannot be purchased in its existing condition and in this condition they do nciT know if they can redevelop this site. In order to move forward, RER needs to know that a portion of these costs will be funded through the tax increment district. Chairperson Pro Tem Gabel noted that a revised budget was distributed and she asked for an explanation of the changes. Jim Casserly,Redevelopment Consultant, said that the only revision involves the Hazardous Substance Subdistrict (HSS) interest rate assumption. It was being calculated at a higher interest rate which meant that there would be fewer funds available and that was not accurate. A 4% interest rate is now being used in the analysis which is the interest rate currently allowed by statute. This will result in generating additional funds and showing additional funds available for the HSS district. The exact tax rate will not be known until the district is certified. The revised budget reflects an accurate number given the assumptions we are working with today. Mr. Casserly said that the costs that are shown in this budget are aggressive. The reason aggressive costs are used is so the budget doesn't have to be amended again. A 2.5% inflation rate is being used. In the past we have had to amend budgets and we do not want to do that in this project. There is no commitment to spend the entire amount that is in the budget, the number cannot be exceeded. Chairperson Pro Tem Gabel asked for clarification that this is a projection and is not cast in stone until the development agreement is approved. City of Fridley Housing and Redevelopment Meeting of April 5,2012 3 Mr. Casserly answered that is correct; this lays out the parameters of what can be done and how these funds are used is for further discussion. Commissioner Eggert understood that today the Authority is creating the vehicle to fold into the development agreement; from that a redevelopment plan will be created. Today there is no financial obligation. Mr. Casserly answered correct; the HSS district cannot be certified until a plan is approved with a mechanism where they can start to clean up a portion of what is in the plan. The County can only reimburse the Authority for amounts that are actually going to be spent for remediation. William Burns, City Manager, said that the MPCA who oversees the Superfund sites was at the City offices today. This site was discussed and he said he had been having discussions with the developer for this site. Chairperson Pro Tem Gabel noted that there is an estimate of$4.0M for remediation; she asked if that figure was based on experience or if it was just a starting figure. Mr. Hyde answered both; this is the fourth federal Superfund site RER has done. The Boise/ Murphy site in Fridley was one of those sites. The unknown is what is underneath each building and that won't be uncovered until the buildings are torn down. That won't happen all at once and we can only estimate based on our experience. The goal is to have a cooperative agreement with the Navy and BAE to use grant funds and federal money to make this redevelopment 1'1 possible. We have a sense of what it will cost to clean up this site. The site is fairly well investigated and with the exception of what is underneath the buildings; we do not know what kind of surprises we will find under there. Chairperson Pro Tern Gabel asked if they found a horrible surprise under there if the cost to clean up would be taken care of by being aggressive in the budget or if that would be taken out of the HSS funds. Mr. Casserly answered that the HSS funds are only a portion of what is needed for this clean up. Our concept is that we would advance a portion of those funds with each phase as we would not have all of the funds available immediately. There is a 99% likelihood the revenues will be there. Phase one is in the parking lot area and as that phase is developed it will add value to what is already there. As the buildings come down it will subtract value to what is there. At the end of the day there is still going to be a value on that site of$14-$15M and that is where we are getting our subdistrict revenues from. The redevelopment captures the new value. The first project is going to support that existing value; but it is unknown if the first project will add value or maintain value. Chairperson Pro Tem Gabel asked what would happen if we ran out of HSS money; if the HSS funding is frozen at the time the district is certified and not available through the entire project. Mr. Casserly said that the subdistrict would be frozen as there is no ability to inflate those funds; that amount would be a set amount. Chairperson Pro Tern Gabel asked if we ran out of HSS funds for remediation if the project funds could be used. City of Fridley Housing and Redevelopment Meeting of April 5,2012 4 Mr. Casserly answered yes; we are anticipating using those funds. We are also looking for other sources of revenues to assist with the remediation costs; grants and advances will be necessary from third parties to help with remediation costs. Commissioner Eggert asked how they plan to manage the cleanup costs in this picture knowing that there is a certain amount to start with and how will a million dollar problem that isn't expected, be handled if it should arise. Mr. Hyde explained that they will start in the least polluted end of the site to spend less money and create more increment. The next area is at the other end and also is not as bad as what may be under the existing buildings. The existing buildings are phase three and four; that is where we hope to build up enough increment ahead of time and will share those costs with responsible parties. The current building sites will save money in the long run by having a more efficient groundwater system. All stakeholders are very motivated to share a success story here. The Navy is eager to have a more efficient clean up system and the development on this site is going to make that happen. Commissioner Eggert asked if there was a knowledgeable approach to limit the surprise that may arise. Mr. Hyde said that there is always a problem. The Boise/Murphy site was investigated perfectly but when the scraper was running across the site it hit several barrels and then it hit some more. A trench was found that was six feet wide and hundreds of feet long with many barrels of restricted material. A similar situation will more than likely happen with this site and we will have to be careful. A plan with the agencies is just as important as the money. We need a relationship with the agencies, a plan to look for problems, dig them up and have a plan to remove and take care of it. A total of 80 barrels were found on the Boise/Murphy site and that put us behind four days; the money was important but so were the relationships to be able to manage that process. Dr. Burns said that he had heard that BAE or someone is doing some remediation. He heard today that eight test wells are going to be drilled, separately to what RER is doing. Mr. Hyde said that there are two Superfund sites on this site and both BAE and the Navy are under significant pressure because their systems are not working that well and they are expensive. Water systems are not working well, they are old and not efficient; the current buildings are in the way to fix this problem. The Navy is under pressure to investigate the three areas under the building. The vault for BAE is on the side that we are not developing. Our redevelopment will help them because they won't have to worry about the buildings. That is an opportunity we present to other stakeholders who have deeper pockets than we do. Commissioner Holm understands the TIF District isn't official until the County certifies it and they won't certify that until RER has submitted a project plan for remediation. The County will want some assurance from the MPCA, the Navy and so on. He asked when the cleanup will start and how this is going to be managed. Mr. Hyde said that RER will be committing to this before it will happen. RER wants assurance from the City and HRA that the tools we need will be there. The grants won't be ready,but with a plan in place and the HRA/City we know we have the primary tools to get started. We have until June 20 to figure this out. In that time we need to get the HRA deal done and figure out A City of Fridley Housing and Redevelopment Meeting of April 5,2012 5 something with the Navy. The goal in that time is to have an agreement with both the HRA and /'■ the Navy and to have a response action in place. Commissioner Eggert noted that the purchase agreement was extended,he asked how any deviations from the plan will be characterized. i Mr. Hyde said that there was a short�use with th eller that was driven by the lender and they had an unrealistic approach. Now that we are f ing out what is involved, they now have an appreciation for the complexity of this project it is being absorbed by all parties, the seller has been terrific and couldn't be more thrilled with how things are going. Things are going extremely well but it still is taking longer than we thought. Chairperson Pro Tern Gabel understands how incredibly complicated this project is and this is just the beginninur journey. She said that at this meeting we are just looking at creating the districts. MOTION by Commissioner Holm to approve the Resolution Creating TIF District#20 and Hazardous Substance Subdistrict#20A. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Approval of Driveway Easement—561 Hugo Street Paul Bolin, HRA Assistant Executive Director, said a survey revealed an encroachment of 4.8" on the driveway located at 561 Hugo Street. The code requires a 3' setback. There are two options to fix this problem; remove encroachment or create an easement for a driveway. Staff recommends granting easement and the neighbor will pay the County filing fees. Commissioner Eggert asked if the city would bear the cost of the easement. Mr. Bolin said that the City has created easements for similar and more complex situations in the past. Staff took a format already in place and Attorney Casserly reviewed the policy to make sure it was okay. There is not a large cost associated with this request. MOTION by Commissioner Holm to approve the driveway easement at 561 Hugo Street. Seconded by Commissioner Eggert. UPON VOICE VOTE,ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 5. Approval to Hire Appraiser—Medtronic WHQ Property Value Darin Nelson, Finance Director, said that Medtronic is protesting the tax valuation's since 2009. The differences are the property was valued at $5.9M in 2009 and$9.9M in 2011. These n valuation differences have a big effect on HRA. The difference in 2011 values would reduce HRA TIF collected by $70,000. Staff is proposing an independent appraisal to help settle the difference in values. The cost of an appraisal is $8,000. Staff recommends approval. It is in the Authorities interest to have proper value placed on property. City of Fridley Housing and Redevelopment Meeting of April 5,2012 6 Commissioner Holm asked if Medtronic had conducted any impartial assessor studies to support their valuation. Mr. Nelson answered no; not to the best of his knowledge. Medtronic has a team of attorneys looking at other values in the area. Medtronic is the shining star in the area and their value is placed on other properties throughout the County. Commissioner Eggert noted that there are a lot of properties throughout the area and this is not the first tax case. He asked if staff had knowledge of tax settlements in other areas. Mr. Nelson said that he assumed the assessors had knowledge of other cases but he was not privy to that information. MOTION by Commissioner Holm to hire an appraiser for Medtronic WHQ property value. Seconded by Commissioner Eggert. UPON VOICE VOTE,ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS 1. Potential Sale of Vacant Lot—6000 2"d Street Paul Bolin, HRA Assistant Executive Director, said a meeting was held with neighbors and some changes were made to the site plan. It was decided to turn the building so the longer face is toward Second Street which will eliminate the drive loop and allow enough room for parking behind the building. This will also create more green space and a play area. They plan to get updated plans in the next two weeks and this will come up on a public hearing at the next meeting. The developer plans to pay$10,000 or the appraised value of the non buildable lot. Chairperson Pro Tern Gabel noted that she did not get an invitation about this meeting. Scott Hickok, Community Development Director, said that they sent invitations out to a large list of addresses and thought she was on the list. Every small parcel the HRA owns was on the list as well. It is unfortunate her invitation didn't come but we know they did go out. William Burns, City Manager, asked if the reconfiguration would change the number of floors. Mr. Bolin answered no; they are still talking about a three story building. The comments from the neighborhood were that it would fit better if it was longer and that could draw down the height. Commissioner Holm asked if this is a taxable property. Mr. Bolin answered yes. 2. Potential Sale of 551 Hugo street NE—Scattered Site Paul Bolin, HRA Assistant Executive Director, said that this builder likes these sites; they are affordable, clean and ready to go. The lots are desirable for someone building a new home. This City of Fridley Housing and Redevelopment Meeting of April 5,2012 7 builder has had success buying lots in neighboring cities and has been selling the homes. A n public hearing will be on the May agenda regarding this item. Both the City of Coon Rapids and Robbinsdale have confirmed that this builder has been selling the homes they built. This developer has been good to work with. 3. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said that there is a short report this month as no loans were issued. He has spoken with CEE and they have had some activity since the Home and Garden Show. There were three remodel visits this past month. ADJOURNMENT MOTION by Commissioner Eggert to adjourn. Seconded by Commissioner Holm. UPON VOICE VOTE,ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 8:25 P.M. Respectfully Submitted, 16,1-ede‹, /hoar Krista Monsrud Recording Secretary A ACTION ITEM HRA MEETING OF MAY 3, 2012 CITY of FRIDLEY Date: April 23, 2012 To: William Burns, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subject: Public Hearing - Sale of 6000 2nd Street The Anoka County Community Action Program (ACCAP) is seeking Federal HOME funding for redeveloping the 4 unit building they currently own at 6008 2nd Street. ACCAP would like to demolish the existing building and redevelop their property to accommodate 12 workforce rental housing units and 1 additional unit for a full time property manager. ACCAP has offered the Authority the greater of the appraised value or $10,000 to take ownership of the 40' lot adjacent to ACCAP's (6000 2nd Street). Combining the Authority's non-buildable 40' wide corner lot with ACCAP's lot provides the land area necessary to complete the redevelopment ACCAP is seeking to build. ACCAP's new building will be a mix of 3-bedroom units on the main floor, 2-bedroom units on the 2nd floor, and 1-bedroom units on the 3rd floor. The building will be equipped with an elevator. Upon completion the building would have a value in excess of$2M. A _ _ /"t p � �ji iY pf j � - Existing Building Value: $163,800 CC stlaminceml Proposed Building Value: $2M ACCAP held a neighborhood meeting on April 4th to share their potential project and take comments from the neighborhood. The meeting was attended by 7 residents, representing 5 different households. Mayor Lund also attended the meeting on behalf of the City. ACCAP revised the original site plans, based on comments from the neighborhood. Originally the project was oriented towards 60th and had a driveway that made a loop along the north and west edges of the property. The new plan (below) turns the building so the long side faces 2nd Street. The new plan also moves the drive way and dumpster enclosure to 60th. h. PR7PERrr LrE coaPoRr —— — PRvc,A ■ is II •` PLAT AI4MA hbJGlO-N it 1.1 RAN 043:3N 31 3 I I I I I I I I ■ ..,,/ y / ./f,,„, /, E al 3 I c 7j / / ■ 1 l.,__3_ / / 3/''/ / /2 %/' a 1 4 i �/• lOPfRtt OA 3 /, j/ /j///'// _ a 2 VOLT MCI li TOTAL / /�//�j 7 P41�W6PaCW6 K 'I/. / //!/�� 1 ••• 1 I 7// / /7 /,! i I � ir .... I a , ,,,,,, 4 g‘',/,/// /I • , \\,,. .. ,..,.... 1 F.,,/, // , , /// /„., , 23'4" \ 3V.C" 1 tia I ASA I I._kt IV I SIAELE ate I llC I l" 1 '� •r". bele4 St.Na. ACCAP has a long history of owning and managing properties in the City of Fridley. According to the City's rental inspector and Assistant Fire Chief, ACCAP is at the top of their list for doing an excellent job of screening tenants and managing their properties. The new building is proposed to have a live-in on site manager. Though they are a non-profit organization, ACCAP does pay property taxes on their rental properties. It is a common misnomer that non-profit organizations do not pay taxes. It is the use of the building (rental) that dictates whether or not taxes are paid, not the status of the ownership group. Recommendation: As the HRA lot is non-buildable on its own, and through combination with ACCAP it can add $2M in new value to the neighborhood, staff recommends the Authority hold a public hearing on the potential land sale. Staff further recommends that the HRA authorize the sale of land to ACCAP for the greater of$10,000 or the appraised value. (Final sale price will be determined once ACCAP has the parcel appraised prior to closing. Closing is dependent upon the City's approval of the land use actions needed to proceed with redevelopment.) r-� ACCAP History Page 1 of 1 3 � , tv q I United ACCAP A��,..c, -- ,, `r » ', - ..- ;J+�r ti ,yr.,rti = Communal?6�IC „ . . .......... . , About Us ACCAP Programs Get Involved What's New Resource Guide Other Resources Home ACCAP History The Anoka county Community Action Program,Inc.(ACCAP)is an independent nonprofit agency,which began in 1965 under the Economic Opportunity Act.Every year,ACCAP serves thousands of residents in Anoka County,Minnesota through a wide range of programs.A volunteer Governing Board,made up of representatives of the public sector,private sector,and the low-income community,directs the activities of ACCAP. ACCAP is committed to helping disadvantaged individuals out of poverty and into the community as productive citizens.The agency offers educational opportunities,information and referral,and direct services, such as Head Start,Affordable Housing,and Child Care Resource&Referral.These programs and services help residents achieve their goal of self-sufficiency. The Community Action Program also works to educate the broader community and improve the general population's attitude toward low-income and other disadvantaged persons.Anoka County residents can help their neighbors by volunteering at ACCAP in a variety of settings. ACCAP is funded by contracts with the federal government,the State of Minnesota,Anoka County local municipalities,foundations,the United Way,program fees,and donations.Private contributions remain in the community and are tax deductible. �\ ACCAP :: Anoka County Community Action Program 1201-89th Avenue N E Suite 345::Blaine,MN 55434 Phone 763.783.4747::Fax:763.783.4700::TTY:763 783 4724::a-mail:accap @accap.org contact us I get involved I what's new I resource guide I other resources I site map I home http://www.accap.org/history.asp 4/26/2012 ACCAP Mission Statement Page 1 of 1 Ut � xZ1I @ISM ACCA p F � way Community Partner About Us ACCAP Programs Get Involved What's New Resource Guide Other Resources Home Mission Statement and Vision Our Mission The Anoka County Community Action Program,Inc.is an innovative catalyst for empowering lower income Anoka County residents to achieve their aspirations and dreams. Our Vision Our vision is one of a caring Anoka County community where basic needs are provided so that all residents can achieve and enjoy economic self-sufficiency. /"■ ACCAP :: Anoka County Community Action Program 1201-89th Avenue N.E.Suite 345::Blaine,MN 55434 Phone:763.783.4747::Fax:763.783.4700::TTY:763.783.472'4::e-mail:accap @accap.org contact us I get involved I what's new I resource guide I other resources I site map I home http://www.accap.org/mission.asp 4/26/2012 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY !� COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2012-6"\ 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: Parcel Identification Number: Street Address 23-30-24-22-0059 6000 2nd St. NE Section 2. Findings. 2.01. The Authority hereby finds that the residential property is non-buildable and has a limited market value due to the size of the parcel. 2.02. The Authority hereby finds that the Authority is charged by Statute with improving "substandard conditions" characterized by"dilapidation, obsolescence, overcrowding and faulty arrangement or design of buildings and improvements." 2.03. The Authority hereby finds that it has adopted a Redevelopment Plan to assist in creating environments which would upgrade and maintain housing stock, maintaining housing health and safety quality standards, and maintain and strengthen the character of individual neighborhoods. 2.04. The Authority hereby finds that it has performed all actions required by Minnesota Statutes for the sale of the Property. 2.05. The Authority hereby finds that the sale of the Property to the Anoka County Community Action Program(ACCAP),for use as new multi-family residential units,promotes the objectives as outlined in MN Statute, its Redevelopment Program and the Authority's mission. Section 3. Approval of the Sale. 3.01 The sale of the Property, for a minimum of$10,000, is hereby approved. n HRA Resolution 2012- 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 3RD DAY OF MAY, 2012. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR n ., ,..4 ,...., p ACTION ITEM HRA MEETING OF MAY 3, 2012 flYof / \' D ' FRIDLEY f Date: April 23, 2012 ,� To: William Burns, Executive Director `70 4fou' 1 t-% From: Paul Bolin, Asst. Executive HRA Director //�� Subject: Public Hearing - Sale of 551 Hug o S treet NE - HRP " Dale Anderson, representing Novak-Fleck Builders (NFB), submitted a lot reservation agreement to build and sell a new home at 551 Hugo Street. NFB made an offer of $30,000 for the lot, a price justified by comparable sales and the City Assessor. . r Q - '` Ei{, 11110.69f* R4 TT.- �-• \ _-.: '\'. The Authority purchased the property, with house and garage in August of 2011, for $65,000. The home was demolished in November of 2011 and the property split in 2 separate lots in February 2012. The property is included in the Authority's HRP TIF District. The Authority will collect the increment generated from the new construction for the next 15 years. Using rough numbers, it is estimated this increment will total $1,200 to $1,500 per year to help defray the Authority's investment. '� Over the past 2 years, NFB has had success building and selling on infill lots in the Cities of Coon Rapids and Robbinsdale. NFB has designed the home to meet the conditions and intent of the Authority's HRP Guidelines. A set of plans is attached to this memorandum. 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POOTAfte ANA COMM N .IA 2 OW KW•UARAMISO - p!ri 4;MLTC a PLAIN ALL WORM OPODI.! ` -MRTtlMT 001111 or OJCTIRIOR M LLO.CATOIOW ONO HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA LIRA RESOLUTION NO. 2012- 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: Legal Description: Street Address Lots 19-21, Block G,Riverview Heights 551 Hugo St. NE Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted a development program known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program") pursuant to Minnesota Statutes, Section 469.001 et seq. 2.02. The Authority hereby fords that it has approved and adopted a Housing Replacement District Plan(the "Plan")and created Housing Replacement District No. 1,pursuant to and in accordance with Laws of Minnesota 1995,Chapter 264,Article 5,Sections 44 through 47;Laws of Minnesota 1996,chapter 471, article 7, section 22;Laws of Minnesota 1997, chapter 231, article 10, section 13;Laws of Minnesota 2002,chapter 377,article 7, section 6;Laws of Minnesota 2008,chapter 154,article 9, section 19,and Laws of Minnesota 2010, Chapter 216, Section 42 (collectively"The Act"). 2.03. The Authority hereby finds that it has performed all actions required by Minnesota Statutes for the sale of the Property. 2.04. The Authority hereby finds that the sale of the Property promotes the objectives as outlined in its Redevelopment Program and the Plan. Section 3. Approval of the Sale. 3.01 The sale of the Property is hereby approved. HRA Resolution 2012- Page 2 Section 4. Authorization for Execution and Delivery. 4.01. The Chairman,the Executive Director and Assistant Executive Director are hereby authorized to execute and deliver any documents necessary to effect the sale of the Property in accordance with the Authority's Housing Replacement Program. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA,THIS 3RD DAY OF MAY, 2012. LAWRENCE R. COMMERS -CHAIRMAN ATTEST: WILLIAM W. BURNS -EXECUTIVE DIRECTOR P.\ INFORMATIONAL ITEM HRA MEETING OF MAY 3, 2012 CITY OF FRIDLEY Date: April 25, 2012 To: William Burns, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subject: 4800 East River Road / RER Project Update Authority Activity: Though the Authority and Council have adopted resolutions authorizing the creation of TIF District#20 and Subdistrict#20A, there is still many tasks to complete to keep the project moving forward. Authority staff, legal counsel and RER will continue to collaborate and negotiate a term sheet for the Authority to consider on June 7th. City Activity: City Staff is currently working on making a determination of whether or not an EAW (Environmental Assessment Worksheet) and/or an EIS (Environmental Impact Statement) are required for the project. Developer Activity: Paul Hyde, RER, reports his past week has been busy with the following activities: • Meeting with lenders. • Starting process for cleanup and RAP by kicking off the Phase I Environmental Study this week • Began civil design for submittal in a few weeks, to City, for re-zoning. • Ongoing discussions with Navy. • Continued work on cash flow with City and Jim C for extraordinary costs. • Met with BAE about a "build to suit" new building on the site for them. n Fridley HRA Housing Program Summary Cover Page May 3, 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. H:\—Paul's Documents\HRA\HRA Agenda Items\2012\May 3,2012\Housing Program Cover May Page.docx Fridley HRA April 15, 2012 Application Summary 3/15-4/15 Year-To-Date New Applications Total Applications Rec'd/ Loans Applications Applications Loans Program Sent Out* in Process Closed Mailed Processed Closed HRA Revolving Loan Fund 2 2 0 4 4 1 HRA- Fridley Last 0 0 0 0 0 0 MHFA Deferred Loan 0 0 0 0 0 0 MHFA Fix-Up Fund 0 0 0 0 0 0 MHFA Community Fix-Up Fund 0 0 0 0 0 0 MHFA Community Fix-Up w/ Discount 0 0 0 0 0 0 CEE Home Energy Loan 2 1 0 1 1 0 Private Bank Loan (through CEE) 0 0 0 0 0 0 MHFA Rental Rehab Loan Fund 0 0 0 0 0 0 DOC Rental Energy Fund 0 0 0 0 0 0 Totals: 4 3 0 5 5 1 *Number of applications sent out does not take into account property owners downloading their application from the CEE website '\ Fridley HRA 4/15/2012 Loan Originations Programs This Month Previous Month Since 1/1/2012 HRA Loans(incl.CFUF Discount loans) $ - $ - $ 9,540.00 Leveraged Loans $ - $ $ Total $ - $ - $ 9,540.00 Funding Sources This Month Previous Month Since 1/1/2012 Fridley HRA inc Revolving&FRIDLAST $ - $ - $ 9,540.00 MHFA FUF/CFUF $ - $ - $ - Fridley Discount portion for CFUF $ - $ $ Met Council $ - $ - $ CDBG/HOME $ - $ - $ CEE Energy $ - $ $- Other $ - $ - $ Total $ - $ - $ 9,540.00 Types of Units Improved' *most HH do more than one improvement so the total#will be equal or greater to the number of loans originated This Month Previous Month Since 1/1/2012- /"., Single Family - 1 _ Duplex Tri-Plex - 4 to 9 Units - 10 to 20 Units - - 20+Units - Total - - 1 Types of Improvements Interior #of Projects %of Total Bathroom remodel - 0% Kitchen remodel - 0% General plumbing - 0% Heating system - 0% Electrical system - 0% Basement finish - 0% Insulation - 0% Room addition - 0% Misc.interior projects - 0% Foundation - 0% Exterior Siding/Fascia/Soffit - 0% Roofing - 0% Windows/Doors 1 100% Garage - 0% Driveway/sidewalk - 0% Landscaping - 0% ,'\ Misc.exterior projects - 0% Fridley HRA Remodeling Advisor Service - 2012 April 15, 2012 Remodeling Advisor Appointments Appointments Month Scheduled Completed Jan-12 0 0 Feb-12 2 2 Mar-12 1 1 Apr-12 3 3 May-12 0 0 Jun-12 0 0 Jul-12 0 0 Aug-12 0 0 Sep-12 0 0 Oct-12 0 0 Nov-12 0 0 Dec-12 0 0 Total 6 6 *Remodeling Advisor monthly amounts may change as paperwork from a visit may not come in until the next month for the previous month.