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HRA 11/07/2013
�,JoG1G November 7,2013 HRA Meeting Regular Meeting Agenda 7.00 p.m. Call to order Roll call. Action Items 1. Approval of expenditures 2. Approval of October 3, 2013 Meeting Minutes 3. Approval of Phase X Housing Replacement Program 4. Approval of Lot Sale - 561 Lafayette St. NE 5. Approval of Lot Sale - 291 57th Place 6. Approval of Draft 2014 HRA Budget 7. Approval of Interfund Loan to TIF#20 HSS Informational Items 1. Islands of Peace Park Plan Review 2. GWNE Update 3. Housing Loan Program Update Adjournment PREPARED 10/29/2013, 16:22:37 A/P CHECKS BY PERIOD AND YEAR PAGE 1 PROGRAM: GM350L FRIDLEY HOUSING & REDEVELOPMENT FROM 10./01/2013 TO 10/31/2013 BANK CODE 00 --- - - ---------- - CHECK CHECK CHECK DATE NUMBER VENDOR NAME VENDOR # AMOUNT ------------------------------------------ ---------------------------------------------------------------------------------- ACCOUNT # TRN DATE DESCRIPTION INVOICE PO # PER/YEAR TRN AMOUNT ------------------------------------------------------------------------------------------------------------------------------------ 10/15/2013 29543 BUST OUT SOLUTIONS 238 2,503.75 265-0000-430.43-30 10/01/2013 H&G Show Web page 2695 10/2013 2,503.75 10/15/2013 29544 CASTLEVISIONS 306 2,292.00 265-0000-430.43-30 09/30/2013 2014 H&G Show 093013-02 10/2013 2,292.00 10/15/2013 29545 CENTER FOR ENERGY & ENVIRONMEN . 311 53,552.21 265-0000-127.00-00 09/17/2013 Home Imp Prog 8/1-31/2013 11714 10/2013 52,452.21 265-0000-430.43-40 09/17/2013 Home Imp Prog 8/1-31/2013 11714 10/2013 1,100.00 10/15/2013 29546 EHLERS & ASSOCIATES, INC 505 200.00 100-0000-430.43-30 09/10/2013 TIF Reporting 346829 10/2013 200.00 10/15/2013 29547 MONROE MOXNESS BERG PA 1113 - 20,952.25 475-0000-430.43-30 09/06/2013 Professional Services 140960 10/2013 6,347.40 477-0000-430.43-30 09/06/2013 Professional Services 140960 10/2013 561.95 100-0000-430.43-30 09/06/2013 Professional Services . _ 140960 10/2013 650.00 474-0000-430.43-30 09/06/2013 Professional Services 140960 10/2013 2,480.75 100-0000-430.43-30 10/09/2013 Professional Services 141678 10/2013 2,086.45 100-0000-430.43-30 10/09/2013 Professional Services 141678 10/2013 2,820.40 475-0000-430.43-30 10/09/2013 Professional Services 141678 10/2013 3,397.70 474-0000-430.43-30 10/09/2013 Professional Services 141678 10/2013 2,542.60 477-0000-430.43-30 10/09/2013 Professional Services 141678 10/2013 65..00 10/15/2013 29548 LAND TITLE, INC 1201 100.00 100-0000-430.43-30 09/26/2013 7011 University Ave 410193 10/2013 100.00 10/15/2013 29549 LIESCH ASSOCIATES INC 1213 4,434.30 474-0000-430.43-30 09/17/2013 Professional Services T449693 10/2013 3,936.45 501-0000-430.43-30 09/17/2013 Professional Services T449708 10/2013 497.85 10/15/2013 29550 PASSAU LANDCARE INC. 1601 3,302.43 470-0000-430.43-40 09/03/2013 Mowing 8/27 6326 10/2013 180.00 501-0000-430.43-40 09/03/2013 Mowing 8/27 6326 10/2013 245.00 455-0000-430.43-40 09/03/2013 Mowing 8/27 6326 10/2013 35.00 - 100-0000-430.43-40 09/03/2013 Mowing 8/27 6326 10/2013 370.81 474-0000-430.43-40 09/03/2013 Mowing 8/27 6326 10/2013 270.00 470-0000-430.43-40 09/23/2013 Mowing 9/17 6339 10/2013 180.00 501-0000-430.43-40 09/23/2013 Mowing 9/17 6339 10/2013 245.00 455-0000-430.43-40 09/23/2013 Mowing 9/17 6339 10/2013 35.00 100-0000-430.43-40 09/23/2013 Mowing 9/17 6339 10/2013 370.81 474-0000-430.43-40 09/23/2013 Mowing 9/17 6339 10/2013 270.00 470-0000-430.43-40 10/08/2013 Mowing 10/08 6420 10/2013 128.25 501-0000-430.43-40 -10/08/2013 Mowing 10/08 6420 10/2013 224.44 455-0000-430.43-40 10/08/2013 Mowing 10/08 6420 10/2013 37.41 100-0000-430.43-40 10/08/2013 Mowing 10/08 6420 10/2013 422.16 474-0000-430.43-40 10/08/2013 Mowing 10/08 6420 10/2013 288.55 10/15/2013 29551 CENTERPOINT ENERGY 1804 23.94 501-0000-430.43-38 10/07/2013 561 Lafayette St 12637 10/2013 23.94 PREPARED 10/29/2013, 16:22:37 A/P CHECKS BY PERIOD AND YEAR PAGE 2 PROGRAM: GM350L FRIDLEY HOUSING & REDEVELOPMENT FROM 10/01/2013 TO 10/31/2013 BANK CODE 00 -- ---------------- - --- ----- ------ ----- -------- --------------- CHECK CHECK CHECK DATE NUMBER VENDOR NAME VENDOR # AMOUNT --------------------------------------------------------------------------------------------------------- --------------------- ACCOUNT # TRN DATE DESCRIPTION INVOICE PO if PER/YEAR TRN AMOUNT ------------------------------------------------------------------------------------------------------------------------------------ 10/15/2013 29552 SEVENICH, BUTLER, GERLACH & BR 1933 4,387.50 474-0000-430.43-30 09/10/2013 Professional Services 30826 10/2013 2,306.25 100-0000-430.43-30 09/10/2013 Professional Services 30826 10/2013 225.00 100-0000-430.43-30 09/30/2013 Professional Services 308882 10/2013 1,856.25 DATE RANGE TOTAL * 91,748.38 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION October 3, 2013 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:00 p.m. ROLL CALL: MEMBERS PRESENT: Larry Commers Pat Gabel Stephen Eggert William Holm Gordon Backlund OTHERS PRESENT: Wally Wysopal, City Manager Paul Bolin,HRA Assistant Executive Director Scott Hickok, Community Development Director Darin Nelson, Finance Director Becky Kiernan, Accountant Jim Casserly, Development Consultant Greg Johnson,Accountant Paul Hyde,Real Estate Recycling(RER) ACTION ITEMS: 1. Approval of Expenditures MOTION by Commissioner Gabel to approve the expenditures. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of September 3,2013 Meeting Minutes MOTION by Commissioner Eggert to approve the minutes as presented. Seconded by Commissioner Holm. Commissioner Gabel noted on page two, number four, first paragraph, third sentence should read "Revenues from booth rental cover the expenses for the show." And the last sentence should read "work for the 2014 Home & Garden Show." The last page, item number three, second paragraph, second sentence should read"He didn't think the Authority should give up on it." UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MINUTES APPROVED AS AMENDED HRA Meeting of October 3, 2013 2 3. Approval of 2014 Meeting Dates MOTION by Commissioner Holm to approve the 2014 Meeting dates. Seconded by Commissioner Backlund. Commissioner Gabel didn't think the July 3 meeting should take place, she thought it could stay on the schedule and if a meeting is needed in July the date could be switched. Paul Bolin, HRA Assistant Executive Director, said that in the past if a July meeting was necessary the Authority would meet the week before or after the 4th of July. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Approval of Hyde Development's Redevelopment Agreement Paul Bolin, HRA Assistant Executive Director, said that over the years this site at 4800 East River Road has gone by many different names but now this site will be promoted as the Northern Stacks Business Park. This will be a big part of the marketing materials and staff wanted to make the Authority aware of the new name. Mr. Bolin said that meetings, regarding redevelopment of the site, started with Mr. Hyde in July of 2011 and by November 2011 an interim agreement was signed. In April of 2012 TIF District #20 was created along with the hazardous substance sub-district (HSS). In June of 2013 the term sheet was agreed upon which turned into the redevelopment contract submitted to the Authority in October of 2013. The redevelopment contract is a large document and lays out the obligations and responsibilities for the HRA and Hyde Development. The HRA will provide TIF assistance and assist in obtaining grants. Hyde Development will develop the site as proposed and clean up the contamination in accordance with Response Action Plans (RAP). Staff recommends approval of the Redevelopment Contract which will allow construction to begin in the spring of 2014. Paul Hyde, Hyde Development, said that they are thrilled to see the logo and a new branding to honor the history this site presents. The leasing interest has been very active over the last six weeks. They are actively showing space and sending out proposals to interested parties. On the environmental side they have completed the phase one site investigation and are starting the phase two site environmental investigation. They found 5-6 different things, some of which they were expecting and some they weren't expecting. On November 1st they will apply for Metropolitan Council and DEED cleanup grants to supplement the tax increment to help cleanup and redevelop the site. The development agreement has been approved and signed so they will be able to go in on November 1st with grant applications. All the tools are in place to get the work done. Commissioner Backlund asked about the wells on the property and if they will be removed as they clean up the site. Mr. Hyde said that there are wells pumping ground water on west side of the property extracting ground water and those wells will not be touched. The other wells are monitoring wells. If they need to be relocated, that will be done; if wells can be removed they will be removed. HRA Meeting of October 3, 2013 3 Chairperson Commers asked for a rundown on the financing of the project. Jim Casserly, Development Consultant, said that a summary of project financing was included in part of the documents that were sent out to the Authority. There are four phases totaling about $20M per phase. Tax increment will start accumulating in 2015. The paperwork shows examples of a slow and fast build out. The reason for this analysis is because the Authority is using money from their General Fund balances. Because the General Fund has other commitments and demands, staff needed to make sure there is enough money in the General Fund to loan to the Hazardous Substance Sub-district (HSS). Mr. Casserly stated that there will be a resolution at the November meeting to authorize a loan from the General Fund to the HSS. That loan then becomes the funds available for grants to the developer and the developer is not repaying those grants. Taxes that currently exist and taxes from the sub-district will repay the loans back to the General Fund. At the end of the day the Authority's General Fund will be paid back all of the money. Chairperson Commers asked how long it will take the Authority to recover the funds. Mr. Casserly replied 18-20 years. Wally Wysopal, City Manager, asked staff to define slow and fast build out. Greg Johnson, Accountant, replied that in the slow build out a new phase would start every three years and in the fast build out a new phase would start every 18 months. Mr. Johnson reviewed the tax increment analysis and revenue notes to the developer. This shows there would be about $16.76M in revenue notes available to the developer and the contract would create a max of$20M. This example is assuming a 6% interest rate on the revenue notes. Mr. Casserly added that the interest rate on the agreement is what has been negotiated with the lenders. These notes will be used for security so Mr. Hyde can maximize the principal on the notes and get the best interest rate he can. The exception is any note that goes to the developer that the developer is keeping and not using as security for another loan. It is that note that is subject to limitations in the agreement. Mr. Hyde said that people think the superfund pays for the cleanup which is doesn't. It allows the EPA to make grants to DEED or counties and once the EPA money is received they can loan it out and pay a nominal interest rate. This is nice because not a lot of money is spent on interest; that is the goal. TIF funds are paid off faster because more money goes to the principal. The DEED application that will be submitted November 1" is for grants and there is an appendix that answers supplemental questions that relate to the eligibility of these separate programs. Mr. Casserly noted that if an interest rate of 2-3% can be achieved the district will be able to be closed down earlier because there are fewer obligations. Given the size of this project there will be private sector loads at a higher interest rate plus the EPA loans. The revenue note portion is similar to what has been done in the past; issuing a number of notes at different interest rates and to different payees. HRA Meeting of October 3, 2013 4 Chairperson Commers asked if the purpose to issue bonds was to take the notes out. Mr. Casserly replied that when the notes are paid off, the developer can use the lender again to secure additional funds for phases 2, 3 or 4. Everyone would like to use EPA funds but that may not be enough so some funds will be issued in notes to lenders to raise funds. Chairperson Commers noted that there is a difference in the interest on notes vs. bonds. Mr. Casserly said that it is noted in the agreement to only issue bonds to take out notes. Notes can only be issued when the project is complete and bonds can only be issued to take out notes. Once the project is completed, it can be identified with certainty that this project will be there to pay taxes, which gives more assurance. Commissioner Eggert added that it is a mechanism to reduce risk by issuing bonds on things that may not get built. Chairperson Commers noted that sometimes insurance is issued on bonds but that is an additional cost. Commissioner Holm asked if the revenue bonds were issued tax exempt like municipal general obligation bonds. Mr. Casserly replied that it would all be taxable. Commissioner Backlund said that the risk is that obligations may be committed and there is a potential for a loss of finances by supporting the project as it may or may not succeed. He didn't think that it is a worthy discussion at this point and time. The Authority will have to take some risk and the risk seems to be minimized. Chairperson Commers asked about the timing of how the project has to progress before the grants or TIF starts. Mr. Casserly replied that this will all happen in multiple phases. Notes will not be issued until the project is completed. Commissioner Backlund noted that it is not all upfront; pay and receive as you go. Mr. Casserly replied that is what allows the Authority to help with a project of this size. Financing is done incrementally; the first grant is being secured and subsequent grants are provided when a phase is completed. The base taxes will pay for the project. Chairperson Commers asked if the first payment is guaranteed. Mr. Casserly replied that it is a traditional kind of loan and will turn into a grant when the first building starts. MOTION by Commissioner Gabel to approve Hyde Development's Redevelopment Agreement. Seconded by Commissioner Eggert. HRA Meeting of October 3, 2013 5 UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 5. Approval of Resolution Supporting Grant Application—MN DEED Paul Bolin, HRA Assistant Executive Director, stated that he will present item nos. 5 and 6 and then the Authority will vote separately on the items. The Phase I development site investigation was completed in August and the results and RAP will be sent to the MPCA tomorrow. On August 15th an application was sent to DEED for the Redevelopment Grant and a decision is expected any day. The Phase I development plan for Hyde Development is completed, the rezoning process is underway and was approved by the Planning Commission on September 18 and will go before City Council on October 14. The marketing strategy is underway and several prospects are interested for spring 2014 construction. The budget project indicates a need for $10AM in grants from outside sources. The development agreement states that the redeveloper and Authority will cooperate and use their best efforts to seek grants from the State of Minnesota, Metropolitan Council, DEED, Anoka County, Department of Navy, EPA or other available public funds. Mr. Bolin stated that the DEED Contamination Cleanup Grant Program assists with the contamination investigations and development of Response Action Plans (RAP) or with contamination prescribed in the Minnesota Pollution Control Agency (MPCA). These grants require a 25% local match, participation in the Metropolitan Council's Local Housing Incentive Programs for Twin cities metro-area applicants, and the serious expectation that the site will be redeveloped. DEED is considering Hyde's acquisition cost as a local match and Tax Base Revitalization Account (TBRA) funds may be used for 13% of the match. Mr. Bolin said that the TBRA provides $5M annually to investigate and cleanup brownfields, contaminated land, ground water or buildings for redevelopment. Staff recommends that the Authority adopt the resolution, approving application to enter into a funding agreement with DEED, and act as the project sponsor for the Contamination Cleanup Grant funds necessary to redevelop the property located at 4800 East River Road. Staff also recommends that the Authority adopt a Resolution, approving application to Metropolitan Council's Tax Base Revitalization Account, for grant funds necessary to redevelop the property located at 4800 East River Road. Chairperson Commers asked about the 25%match. Paul Hyde, RER, replied that there is a broad match of 25%, 13% for Met Council or other funds that could be in the tax increment and 12% on funds that are not TIF. There are plenty of match funds available and getting awarded the grant is the main focus. MOTION by Commissioner Gabel to approve the Resolution Supporting Grant Application—MN DEED. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 6. Approval of Resolution Supporting Grant Application—Met Council HRA Meeting of October 3, 2013 6 MOTION by Commissioner Holm to approve the Resolution Supporting Grant Application—Met Council. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 7. Approval of Award for Demolition Services—GWNE & HRP Paul Bolin, HRA Assistant Executive Director, stated that two building are to be demolished; the Fridley Animal Hospital at 5895 University and a single family home at 561 Lafayette Street. Staff and Public Works ran the formal quote process. The quotes were reviewed on October 3, 2013. Four quotes were received and the bids ranged from $43,880 to $68,280. The lowest bid was Buberl Recycling. Staff recommends awarding work to Buberl Recycling. The quote was within staff estimates and Buberl has performed well on past HRA jobs. MOTION by Commissioner Holm to award contract for demolition services — GWNE & HRP to Buberl Recycling. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS: 1. HRA Fund Balances Greg Johnson, Accountant, reviewed the cash flow report and summarized where the Authority has been and where they are going. At the end of 2012 the fund balance was $10.8M and the cash balance was $10M; the revolving loan fund has about $1 M in there and that is the reason for the difference. The biggest difference is $4.5M shortfall in the newer TIF districts. Details are listed on #11. Funds can be advanced to cover shortfalls in newer districts and as districts advance they will repay back the General Fund. Mr. Johnson said that there is a bigger shortfall in Gateway NE and that district can't recover $4.5M in outstanding obligations. Some funds, maybe $2-3M may be recovered. Other TIF funds may be used to pay Gateway NE and then funds could be paid back to the General Fund. They can work with the finance department and identify transfers that may be necessary. Mr. Johnson said that TIF districts 1 and 3 are not cleaned up yet and those funds will go back to the county and distributed to the city and school districts. Medtronic added tax capacity and value in the last year. The net impact of this change is approximately $12.16M of market value and has become available for all taxing jurisdictions to levy against which will have the effect of reducing tax rates assuming that all other variables are held constant. Commissioner Backlund asked how much of that increase is beyond tax increment and goes to physical disparities. Mr. Johnson was not sure; maybe 1/3. HRA Meeting of October 3, 2013 7 Mr. Johnson said that there is quite a bit of cash in the Onan district and staff should consider transferring to cover the shortfalls in Gateway West and NE. These funds could reduce the negatives in the Gateway districts and the cash would flow back to the HRA General Fund. Chairperson Commers said that looking at the TIF District overview it shows that we started with a value of$30M and through different programs added $302M. Mr. Casserly replied yes, this is a nice summary of what has happened since inception. 2. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, reported that in September one RLF loan and one other loan was closed. There was one Remodeling Advisor Visit making a total of 5 year to date. Mr. Bolin thanked Becky Kiernan for her years of employment with the City of Fridley. She has been with the City since July 2009 and has done a great job. She will be missed. Chairperson Commers added that it is Fridley's loss and Dakota County's gain. On behalf of the Authority he thanked Becky for her work with the HRA. ADJOURNMENT: MOTION by Commissioner Gabel to Adjourn. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 8:35 P.M. Respectfully Submitted, Krista Peterson, Recording Secretary 1k AW J \ ri ACTION ITEM HRA MEETING OF NOVEMBER 712013 CITY OF FRIDLEY Date: October 10, 2013 To: Wally Wysopal, City Manage From: Paul Bolin, Asst. Executive HRA Director Subject: Housing Replacement Program - Phase X Creation Attached for Authority consideration is a resolution approving Phase X of the Housing Replacement Program's (HRP) scattered site tax increment-financing district. In late 2010, the Authority and the Council approved an amended and restated plan for the HRP. The restated plan gave the Authority the ability to add Phases (parcels) to the program by resolution. Once a parcel is included in the district, the HRA collects tax increment for a period of 15 years. The increment is used to help cover some of the costs of the program (ie. acquisition, demolition, property maintenance, etc.). Unlike a traditional tax increment district, the HRP is less cumbersome to administer. Since the program originally began in 1995, the City has approved nine phases for a total of 35 properties. Under special legislation approved in April 2010, the City can designate up to 100 total parcels, inclusive of the 35 properties already in the program. The parcels included in Phase X include: Address: Purchase Price: 561 Lafayette Street $30,000 Recommendation Staff recommends that the Authority approve the attached resolution amending the Housing Replacement Program to include Phase X. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2013 -XX i RESOLUTION APPROVING AND ADOPTING THE ADDITION OF PHASE X TO HOUSING REPLACEMENT DISTRICT NO. 1 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 approve and adopt the addition of Phase VIII to Housing Replacement District No. 1 (the "District"), pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047 and 469.174 to 469.1799, as amended; 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"). 1.02. By City Resolution 66-1995 adopted October 23, 1995, the City Council of the City (the "Council") adopted a resolution approving a Housing Replacement District Plan and creating Housing Replacement District No. 1. 1.03. By City Resolution 2010-99 adopted December 13, 2010, the Council approved a Restated Housing Replacement District Plan (the "Plan") enabling the Authority to add parcels to or delete parcels from the District. 1.04. The Act and the Plan specify the procedures whereby parcels may be added to and deleted from the District. 1.05. It has been proposed that the parcel to be included in Phase X be added to the District. Section 2. Findings. 2.01. The Authority hereby finds that it is necessary and in the best interests of the City and the Authority at this time to approve and adopt Phase X to the District to achieve the Authority's and City's goal for acquiring blighted, undeveloped, or underdeveloped parcels for redevelopment or rehabilitation, and for resale as market rate housing. 2.02. The Authority hereby finds, determines and declares that the parcel in Phase X qualify for inclusion in the District pursuant to the Act and the Plan; and that the reasons and supporting facts for this determination are retained and available at the Authority Offices. 2.03. The Authority further finds, determines and declares that the parcel to be added to and certified within the District includes one vacant single-family dwelling located at: Parcel 1 561 Lafayette Street PIN 03-30-24-22-0069 2.04. The Authority further finds, determines and declares that the intended reuse of these properties is market-rate, owner-occupied housing,pursuant to the Act and the Plan. 2.05. The Authority further finds, determines and declares that there are now 36 parcels in the District with the inclusion of the three Phase X parcels. The maximum number of parcels that can be included in the District is 100 parcels. Section 3. Approval of Phase X to the District. 3.01. The inclusion of the Phase X parcel to Housing Replacement District No. 1 is hereby approved and adopted by the Commissioners of the Authority. Section 4. Certification of Parcels. 4.01. The Authority shall cause this Phase to be filed with the Minnesota Department of Revenue, the Office of State Auditor and request that the parcels be certified with Anoka County. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS 7th DAY OF NOVEMBER, 2013. Lawrence R. Commers, Chairperson ATTEST: Walter T. Wysopal, Executive Director MMB:4832-3509-3000,v. I 2 ri ACTION ITEM HRA MEETING OF NOVEMBER 712013 MY OF FRIDLEY Date: October 30, 2013 To: Wally Wysopal, City Manager/ Executive HRA Director From: Paul Bolin, Asst. Executive HRA Director Subiect: Public Hearing - Sale of 561 Lafayette NE - HRP Shermer Homes, of Dayton, submitted a lot reservation agreement to build a new home on the lot located at 561 Lafayette Street NE. At the time of writing this memorandum, staff has not received a copy of the proposed home design, but expect it will meet the HRA's criteria based on other homes Shermer has under construction in Fridley. Staff will have the drawings prior to the HRA's meeting and will provide them at that time. i^'°<r tpFA 5 ti say yy III Provided the proposed home plans meet the HRP's criteria, Staff recommends approval of the attached resolution, authorizing the sale of the lot to Shermer Homes for $27,000. v HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2013- A RESOLUTION AUTHORIZING THE SALE OF RESIDENTIAL PROPERTY BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota(the "Authority") as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority sell certain residential property(the"Property")described below: PIN: Street Address 03-30-24-22-0069 561 Lafayette Place NE Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted its Redevelopment Plan for its Redevelopment Project No. 1 (the"Redevelopment Program")pursuant to Minnesota Statutes, Section 469.001 et seq. 2.02. The Authority hereby finds that it has approved and adopted T1F District#18, Gateway West, pursuant to and in accordance with Laws of Minnesota 1995,Chapter 264,Article 5,Sections 44 through 47; Laws of Minnesota 1996, chapter 471, article 7, section 22; Laws of Minnesota 1997,chapter 231,article 10,section 13;Laws of Minnesota 2002,chapter 377,article 7,section 6; Laws of Minnesota 2008, chapter 154, article 9, section 19, and Laws of Minnesota 2010, Chapter 216, Section 42 (collectively"The Act"). 2.03. The Authority hereby finds that it has performed all actions required by Minnesota Statutes for the sale of the Property. 2.04. The Authority hereby finds that the sale of the Property promotes the objectives as outlined in its Redevelopment Program and the Plan. Section 3. Approval of the Sale. 3.01 The sale of the Property is hereby approved for a price of not less than $27,000. ;tea HRA Resolution 2013-_ Page 2 Section 4. Authorization for Execution and Delivery. 4.01. The Chairman, the Executive Director and Assistant Executive Director are hereby authorized to execute and deliver any documents necessary to effect the sale of the Property. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 7th DAY OF NOVEMBER, 2013. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: PAUL BOLIN- ASSISTANT EXECUTIVE DIRECTOR HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2013- A RESOLUTION AUTHORIZING THE SALE OF RESIDENTIAL PROPERTY BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota(the "Authority") as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority sell certain residential property(the"Property")described below: PIN: Street Address 23-30-24-23-0165 291 57th Place NE Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted its Redevelopment Plan for its Redevelopment Project No. 1 (the"Redevelopment Program")pursuant to Minnesota Statutes, Section 469.001 et seq. 2.02. The Authority hereby finds that it has approved and adopted TIF District#18, Gateway West, pursuant to and in accordance with Laws of Minnesota 1995,Chapter 264,Article 5,Sections 44 through 47; Laws of Minnesota 1996, chapter 471, article 7, section 22; Laws of Minnesota 1997,chapter 231,article 10,section 13;Laws of Minnesota 2002,chapter 377,article 7,section 6; Laws of Minnesota 2008, chapter 154, article 9, section 19, and Laws of Minnesota 2010, Chapter 216, Section 42 (collectively"The Act"). 2.03. The Authority hereby finds that it has performed all actions required by Minnesota Statutes for the sale of the Property. 2.04. The Authority hereby finds that the sale of the Property promotes the objectives as outlined in its Redevelopment Program and the Plan. Section 3. Approval of the Sale. 3.01 The sale of the Property is hereby approved for a price of not less than$30,000. HRA Resolution 2013-_ Page 2 Section 4. Authorization for Execution and Delivery. 4.01. The Chairman, the Executive Director and Assistant Executive Director are hereby authorized to execute and deliver any documents necessary to effect the sale of the Property. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 7th DAY OF NOVEMBER, 2013. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: PAUL BOLIN - ASSISTANT EXECUTIVE DIRECTOR ? Z m �m Z hu a`'2._iit�n ZZ U H < ci < d N �a C ` U � < I ®®® I ®®® Ll I � 4 � 4 _ § Z | �9|K j m ƒ\ | tH ® _ CL _ 7 § §�;■ , .§|■!« a Lu Lu . 6 & Lu . � - e 3 ( e o / R ! k2 ] 2 ± ; _ < 2 OL | ; | - � ©� ! . ; ff • ! � b q 7� � q k k� k !■ \ � . . . . .. . . § � ! . K § ~ . ! ' I �. . i Z �- LL- 4 ph as li o _ o 11,11 Z � sa h��=r z � W CD Z CJ U d v 4 N $ 1L1 J N ci- i� �3 64 ter i � - I I _ � C co I I I I I I I 1 I I VI I t diW I I I en I I I I I I 1 p I ZI O _g •W� �f8}}� 7755 0 3_:.c W ('� O � V LUd v 4 N in y� CL- Q s 0 0 --, I � g SNGWWO'JO�dl��ldNhY � s L _ :c I Z 2 � nl ? o b p N V � C� >L S 1 F Opt U - �q1I i �k sCG)_6 motV S fig, I r JG "2 - I el 1c).�L a 1-1{1 � I 8-8 I' I I I I 4 I ':•00 1 1 n I 1 I I 1 11V-I9U Ifo- �a��z . . - -- � � • . ....■. $ §||§|� $ $ � / • o ' §|®|!# � 2 CI _ . 7 & , 7 u ¥ \ f �$ ƒ k � \ CL , & CR 7\ § « .C- 11 - 2 S14 # . , 1 7\ % . s_ . 7\ 2cu b is, . —: . . . . � ;J ACTION ITEM HRA MEETING OF NOVEMBER 7, 2013 CITY OF FRIDLEY Date: October 30, 2013 To: Wally Wysopal, City Manager/ Executive HRA Director From: Paul Bolin, Asst. Executive HRA Director Subiect: Public Hearing - Sale of 291 57th Place NE HRP/Gateway West Regal Homes have submitted a lot reservation agreement to build a new home on the lot located at 291 57th Place. The builder has designed the home to complement the other new homes on the block. orf _ r �F Y" Tik yr Regal Homes will build a three-level home with approximately 1,750 finished square feet. The home will have 4 bedrooms and 3 bathrooms. The exterior of the home will utilize a blend of maintenance free materials and will incorporate shakes and stone on the front of the home. The design of the home will be a nice addition to those already found in the Gateway West neighborhood. Regal Homes recently built 2 single family homes in the newer Columbia Heights development off of Central Avenue. Some of you may know the site as the "Nedegaard" condo development. a x R- k pppN tin IN 3 777=-- (This =(This is an early draft plan) Staff recommends approval of the attached resolution, authorizing the sale of the lot to Regal Homes / TTCP, LLC for $30,000. COMMUNITY DEVELOPMENT DEPARTMENT HOUSING AND REDEVELOPMENT AUTHORITY ,17 Memorandum DATE: November 1, 2013 TO: Wally Wysopal, City Manager/Executive Director of H4 FROM: Darin Nelson, Finance Director "d Paul Bolin, Assistant Director of HRA SUBJECT: Approval of Preliminary 2014 Budget On Thursday night, staff will present a preliminary 2014 budget for HRA review. Darin Nelson and Paul Bolin will be available to answer any questions that the Commissioners may have on the preliminary budget. The HRA's input, and final TIF numbers from Anoka County, will lead to staff making revisions to the preliminary budget and then presenting a final version for consideration at the December HRA meeting. The budget is divided into three separate categories. The General Fund covers the bulk of the administrative and overhead costs of the HRA. The Housing Loan Program Fund covers the housing related programs and services (CEE programs, etc.). The Capital Projects Funds include all of the tax increment (TIF) districts. Fridley Housing&Redevelopment Authority 2014 Preliminary Budget All Funds Summary Beginning Ending Fund Fund Description Fund Balance Revenues Expenditures Balance 100-General Fund $ 8,337,750 $ 695,388 $ 480,169 $ 8,552,969 Special Revenue Fund 265-Housing Loan Programs $ 3,736,235 $ 92,700 $ 47,100 $ 3,781,835 Capital Projects Funds 455-Lake Pointe(1985-2025) $ (436,185) $ 712,500 $ 624,800 $ (348,485) 458-Onan(1989-2015) 1,908,440 352,600 35,000 2,226,040 462-University/Osborne(1992-2018) 200,861 61,100 6,000 255,961 463-McGlynn(1992-2019) 37,409 40,350 4,000 73,759 464-Satellite(1995-2023) 118,659 40,250 4,000 154,909 467-57th Ave(1997-2023) (24,554) 25,000 2,500 (2,054) 468-Gateway East(2001-2028) (646,176) 27,000 2,700 (621,876) 470-Gateway West(2005-2032) (1,226,864) 8,800 1,850 (1,219,914) 472-Main Street(2009-2034) (18,295) 106,350 106,000 (17,945) 474-Gateway Northeast(2017-2042) (1,457,290) - 161,000 (1,618,290) 475-BAE-Superfund Site 20,000 (20,000) 476-BAE-Hazardous Subdistrict 720,000 (720,000) 477-Northstar Station - 10,000 (10,000) 501 -Housing Replacement(1997-2024)Scattered Site (216,043) 145,700 309,500 (379,843) Total Capital Projects Funds $ (1,760,038) $ 1,519,650 $ 2,007,350 $ (2,247,738) Total All Funds $ 10,313,947 $ 2,307,738 $ 2,534,619 $ 10,087,066 Fridley Housing Redevelopment Authority Preliminary 2014 Budget Account Description 2012 Actual 2013 Budget 2014 Budget $Variance %Variance 100 - General Fund Beginning Fund Balance As of January 1,2013 $ 8,069,159 $ 8,391,849 $ 8,337,750 Revenues City Revenues Tax Levy $ 428,473 $ 392,395 $ 380,638 $ (11,757) -3% Tax Levy-Delinquent Years 283 - - - 0% 428,756 392,395 380,638 (11,757) -3% Other Miscellaneous Revenue Interest on Investment Earnings 21,946 23,500 28,500 5,000 21% Rent and Royalties(Fairview-parking lot rental) 9,600 9,600 9,600 - 0% Sale of Miscellaneous Property 143,324 - 140,000 140,000 100% Miscellaneous Revenues(TIF Request) 183,218 136,650 136,650 100% 358,089 33,100 314,750 281,650 851% Total Revenues-General Fund 786,845 429,495 695,388 269,893 639 Expenditures Salaries and Wages Full Time Employee Salary $ 72,217 $ 89,295 $ 90,655 $ (1,360) -2% Administration Charges(Allocation) 201,700 205,700 209,800 (4,100) -2% Employee Leave 15,296 - 0% 289,214 294,995 300,455 (5,460) -2% Benefits Medicare(1.45%of Salary) 1,279 1,300 1,320 (20) -2% Social Security(6.2%of Salary) 5,469 5,550 5,620 (70) -1% PERA Contribution 7.25%of Salary) 6,345 6,500 6,575 (75) -1% Wellness Program - 140 140 - 0% Health Insurance 15,820 16,833 16,833 0% Dental Insurance 264 265 265 0% Life Insurance 51 51 51 - 0% Workers Compensation 1,596 1,800 650 1,150 64% 30,825 32,439 31,454 985 3% Supplies and Materials Operating Supplies 217 2,500 2,500 - 0% Purchased Services Professional Services(Krass Monroe,Ehlers, Sevenich,etc) 103,714 120,000 120,000 - 0% Dues and Subscriptions(NAHRO,A/CP) 500 500 600 (100) -20% Communication(Allocation) 394 760 760 - 0% Transportation(Mileage Reimbursement) 47 150 150 0% Advertising - 1,000 1,000 0% Printing and Binding(Allocation) 816 750 750 - 0% Insurance-Non Personnel(Allocation) 10,551 10,000 3,500 6,500 65% Conferences/Seminars/Training(Ehlers T/F Training) 124 1,500 2,000 (500) -33% Services Contracted(Mowing Contract) 8,716 12,000 12,000 - 0% Miscellaneous Other Services&Charges 794 500 2,500 (2,000) -400% 125,655 147,160 143,260 3,900 3% Capital Outlay Payments to Other Governments(Solid Waste Fees) 1,549 2,500 2,500 - 0% Improvements other than building(Spec Asmts-Fourmies Ave) 16,695 0% 18,244 2,500 2,500 0% Total Expenditures-General Fund 464,155 479,594 480,169 (5751 0% Not Income-Genera Fun 15, Projected Ending Fund Balance As of December 31 $ 8,391,849 $ 8,337,750 $ 8,552,969 K:\HRA\HRA Budgets\HRA 2014 Preliminary Budget-With PB's Changes.xlsx Unaudited Data-For Management Purposes Only Fridley Housing Redevelopment Authority Preliminary 2014 Budget Account Description 2012 Actual 2013 Budget 2014 Budget $Variance %Variance 265- Housing Loan Programs Beginning Fund Balance As of January 1 (Estimated) $ 3,859,019 $ 3,909,535 $ 3,736,235 Revenues Other Miscellaneous Revenue Interest on Investment Earnings $ 18,138 $ 22,500 $ 21,400 $ (1,100) -5% Interest on Mortgages(Pool 0, 1, 2) 45,021 48,300 48,300 0% Miscellaneous Revenue(H&G Show) 18,544 23,000 23,000 0% 81,703 93,800 92,700 (1,100) -1% Total Revenues-Housing Programs 81,703 93,800 92,700 (1,100) -1% Expenditures Purchased Services Professional Services(Castle Vision-Home Show) $ 14,161 $ 17,500 $ 17,500 $ 0% Advertising(Clear Channel-Home Show) 5,282 6,000 6,000 0% Printing and Binding(Advantage Sign-Home Show) 364 1,100 1,100 0% Utility Services 306 500 500 0% Services Contracted (CEE) 3,502 130,000 12,000 118,000 91% Charges/Rentals(National Sports Center/Cenaiko-Home Show) 7,571 9,000 10,000 (1,000) -11% Payments to other govts(Taxes on Home Remodeling) - 3,000 - 3,000 100% 31,187 167,100 47,100 120,000 72% Land(Puchase of home for Home Remodeling Demo Project) 100,000 - 100,000 100% Total Expenditures-Housing Programs 31,187 267,100 47,100 220,000 82% Net Income-Housing Programs 50,516 (173,300) 45,600 Projected Ending Fund Balance As of December 31 $ 3,909,535 $ 3,736,235 $ 3,781,835 455 - Lake Pointe (1985-2025) TIF#6 Beginning Fund Balance As of January 1 (Estimated) $ (449,243) $ (445,435) $ (436,185) Revenues City Revenues Tax Levy $ 721,778 $ 725,000 $ 710,000 $ (15,000) -2% Tax Levy-Delinquent Years (3,952) - - 0% 717,826 725,000 710,000 (15,000) -2% Other Miscellaneous Revenue Interest on Investment Earnings 3,234 2,000 2,500 500 25% 3,234 2,000 2,500 500 25% Total Revenues-Lake Pointe 721,060 727,000 712,500 (14,500) -2% Expenditures Purchased Services Professional Services/Administration Fees $ 71,669 $ 72,500 $ 71,000 $ 1,500 2% Services Contracted(Non-prof) 560 - - - 0% 72,229 72,500 71,000 1,500 2% Capital Outlay Parking Facilities(Medtronic Pay as you go) 645,022 645,250 553,800 91,450 14% 645,022 645,250 553,800 91,450 14% Total Expenditures-Lake Pointe 717,251 717,750 624,800 92,950 13% Net Income-Lake Pointe 3,808 9,250 87,700 Projected Ending Fund Balance As of December 31 $ (445,435) $ (436,185) $ (348,485) K:\HRA\HRA Budgets\HRA 2014 Preliminary Budget-With PB's Changes.xlsx Unaudited Data-For Management Purposes Only Fridley Housing Redevelopment Authority Preliminary 2014 Budget Account Description 2012 Actual 2013 Budget 2014 Budget $Variance %Variance 458 - Onan (1989-2015) TIF#9 Beginning Fund Balance As of January 1 (Estimated) $ 1,270,340 $ 1,593,440 $ 1,908,440 Revenues City Revenues Tax Levy $ 343,278 $ 350,000 $ 350,000 $ 0% Tax Levy-Delinquent Years 5,462 - - 0% 348,740 350,000 350,000 0% Other Miscellaneous Revenue Interest on Investment Earnings 9,184 - 2,600 2,600 100% 9,184 - 2,600 2,600 100% Total Revenues-Onan 357,924 350,000 352,600 2,600 1% Expenditures Purchased Services Professional Services $ 34,824 $ 35,000 $ 35,000 $ - 0% Total Expenditures-Onan 34,824 35,000 35,000 0% Net Income-Onan 323,100 315,000 317,600 Projected Ending Fund Balance As of December 31 $ 1,593,440 $ 1,908,440 $ 2,226,040 462 - University/Osborne (1992-2018) TIF#11 Beginning Fund Balance As of January 1 (Estimated) $ 91,393 $ 146,611 $ 200,861 Revenues City Revenues Tax Levy $ 60,629 $ 60,000 $ 60,000 $ 0% Tax Levy-Delinquent (128) - - 0% 60,501 60,000 60,000 0% Other Miscellaneous Revenue Interest on Investment Earnings 763 250 1,100 850 340% 763 250 1,100 850 340% Total Revenues-University/Osborne 61,264 60,250 61,100 850 1% Expenditures Purchased Services Professional Services/Administrative Fees $ 6,046 $ 6,000 $ 6,000 $ - 0% 6,046 6,000 6,000 0% Capital Outlay Capital Outlay-Northstar Land Acquisition - - - 0% - - - 0% Total Expenditures-University/Osborne 6,046 6,000 6,000 0% Net Income-University/Osborne 55,218 54,250 55,100 Projected Ending Fund Balance As of December 31 $ 146,611 $ 200,861 $ 255,961 K:\HRA\HRA Budgets\HRA 2014 Preliminary Budget-With PB's Changes.xlsx Unaudited Data-For Management Purposes Only Fridley Housing Redevelopment Authority Preliminary 2014 Budget Account Description 2012 Actual 2013 Budget 2014 Budget $Variance %Variance 463 - McGlynn (1992-2019) TIF#12 Beginning Fund Balance As of January 1 (Estimated) $ 9,735 $ 45,694 $ 37,409 Revenues City Revenues Tax Levy $ 39,671 $ 40,000 $ 40,000 $ 0% 39,671 40,000 40,000 0% Other Miscellaneous Revenue Interest on Investment Earnings 255 305 350 45 15% 255 305 350 45 15% Total Revenues-McGlynn 39,926 40,305 40,350 45 0% Expenditures Purchased Services Professional Services/Administrative Fees $ 3,967 $ 4,000 $ 4,000 $ 0% 3,967 4,000 4,000 0% Capital Outlay Capital Outlay - 0% - 0% Total Expenditures-McGlynn 3,967 4,000 4,000 0% Not Income-KeXrtn 36,350 Projected Ending Fund Balance As of December 31 $ 45,694 $ 81,999 $ 73,759 464 - Satellite (1995-2023) TIF#13 Beginning Fund Balance As of January 1(Estimated) $ 41,565 $ 37,409 $ 118,659 Revenues City Revenues Tax Levy $ 41,562 $ 90,000 $ 40,000 $ (50,000) -56% Tax Levy-Delinquent Years - - - 0% Residual MV Homestead Credit - - - 0% 41,562 90,000 40,000 (50,000) -56% Other Miscellaneous Revenue Interest on Investment Earnings 318 250 250 0% 318 250 250 0% Total Revenues Satellite 90,250 40,250 (50,000) -55% Expenditures Purchased Services Professional Services/Administrative Fees $ 4,156 $ 9,000 $ 4,000 $ 5,000 56% 4,156 9,000 4,000 5,000 56% Capital Outlay Capital Outlay-Northstar Land Acquisition - - - - 0% - - - 0% Tots)Exndittues-Sategite 4,156 9,000 4,000 5,000 56%% Not InSome-Satellite Projected Ending Fund Balance As of December 31 $ 37,409 $ 118,659 $ 154,909 K:\HRA\HRA Budgets\HRA 2014 Preliminary Budget-With PB's Changes.xlsx Unaudited Data-For Management Purposes Only Fridley Housing Redevelopment Authority Preliminary 2014 Budget Account Description 2012 Actual 2013 Budget 2014 Budget $Variance %Variance 467 - 57th Ave (1997-20231, TIF#16 Beginning Fund Balance As of January 1 (Estimated) $ (73,257) $ (48,954) $ (24,554) Revenues City Revenues Tax Levy $ 26,878 $ 27,000 $ 25,000 $ (2,000) -7% Tax Levy-Delinquent Years (74) - _ 0% 26,804 27,000 25,000 (2,000) -7% Other Miscellaneous Revenue Interest on Investment Earnings 177 100 - (100) -100% 177 100 - (100) -100% Total Revenues-57th Ave 26,982 27,100 25,000 (2,100) -8% Expenditures Purchased Services Professional Services/Administrative Fees $ 2,678 $ 2,700 $ 2,500 $ 200 7% 2,678 2,700 2,500 200 7% Capital Outlay Capital Outlay(Linn Pay as you go) - _ _ _ 0% 0% Total Expenditures-57th Ave 2,678 2,700 2,500 200 7% Net Income-57th Ave 24,303 24,400 22,500 Projected Ending Fund Balance As of December 31 $ (48,954) $ (24,554) $ (2,054) 468 - Gateway East (2001-2028) TIF#17 Beginning Fund Balance As of January 1 (Estimated) $ (698,962) $ (673,559) $ (646,176) Revenues City Revenues Tax Levy $ 28,090 $ 30,000 $ 27,000 $ (3,000) -10% Tax Levy-Delinquent Years - - _ polo Residual MV Homestead Credit - - - 0% 28,090 30,000 27,000 (3,000) -10% Other Miscellaneous Revenue Interest on Investment Earnings 182 383 - (383) -100% 182 383 (383) -100% Total Revenues-Gateway East 28,272 30,383 27,000 (3,383) -11% Expenditures Purchased Services Professional Services $ 2,869 $ 3,000 $ 2,700 $ 300 10% 2,869 3,000 2,700 300 10% Total Expenditures-Gateway East 2,869 3,000 2,700 300 10% Net Income-Gateway East 25,403 27,383 24,300 Projected Ending Fund Balance As of December 31 $ (673,559) $ (646,176) $ (621,876) K:\HRA\HRA Budgets\HRA 2014 Preliminary Budget-With PB's Changes.xlsx Unaudited Data-For Management Purposes Only Fridley Housing Redevelopment Authority Preliminary 2014 Budget Account Description 2012 Actual 2013 Budget 2014 Budget $Variance %Variance 470 - Gateway West (2005-2032) TIF#18 Beginning Fund Balance As of January 1 (Estimated) $ (1,513,137) $ (1,228,090) $ (1,226,864) Revenues City Revenues Tax Levy $ 7,035 $ 9,526 $ 8,500 $ (1,026) -11% Tax Levy-Delinquent Years - 0% Res MV Homestead Credit 0% 7,035 9,526 8,500 (1,026) -11% Other Miscellaneous Revenue Sale of Misc Property 19,649 - - - 0% Interest on Investment Earnings 799 100 300 200 200% Miscellaneous Revenue(Insurance Claim) - - 0% 20,448 100 300 200 200% Other Finance Sources Transfer from Other Funds 262,907 - - 0% Total Revenues-Gateway West 290,390 9,626 8,800 (826) -9°!0 Expenditures Purchased Services Professional Services/Administrative Fees $ 704 $ 900 $ 850 $ 50 6% Services Contracted(Mowing Contract) 4,640 7,500 1,000 6,500 87% Payments to Other Governments(Anoka County-Property Tax) - - 0% 5,344 8,400 1,850 6,550 78% Capital Outlay Improvements other than building(Final Asphalt) - - 0% - 0% Total Expenditures-Gateway West 5,344 8,400 1,850 6,550 78% Net Income gate-way West -� Projected Ending Fund Balance As of December 31 $ (1,228,090) $ (1,226,864) $ (1,219,914) 472 - Main Street (2009-2034) TIF#19 Beginning Fund Balance As of January 1 (Estimated) $ (4,012) $ (3,395) $ (18,295) Revenues City Revenues Tax Levy $ 115,044 $ 116,000 $ 106,000 $ (10,000) -9% Tax Levy-Delinquent Years (357) - - 0% 114,687 116,000 106,000 (10,000) -9% Other Miscellaneous Revenue Interest on Investment Earnings 521 300 350 50 17% 521 300 350 50 17% Total Revenue-TIF 019 115,208 116,300 106;350 (91950) -9% Expenditures Purchased Services Professional Services $ 11,459 $ 11,600 $ 10,600 $ 1,000 9% Capital Outlay(Pay as you go) 103,132 119,600 95,400 24,200 20% 114,591 131,200 106,000 25,200 19% Total Expenditures-TIF#19 114,591 131,200 106,000 2$,200 19% Not Income 4 Projected Ending Fund Balance As of December 31 $ (3,395) $ (18,295) $ (17,945) K:\HRA\HRA Budgets\HRA 2014 Preliminary Budget With PB's Changes.xlsx Unaudited Data-For Management Purposes Only Fridley Housing Redevelopment Authority Preliminary 2014 Budget Account Description 2012 Actual 2013 Budget 2014 Budget $Variance %Variance 474 - Gateway Northeast(2017-2042) TIF#21 Beginning Fund Balance As of January 1 (Estimated) $ (1,122,023) $ (1,146,290) $ (1,457,290) Revenues City Revenues Tax Levy $ $ $ $ 0% Tax Levy-Delinquent Years 0% 0% Other Miscellaneous Revenue Interest on Investment Earnings 979 poop 979 0% Total Revenues-Gateway NorthEast 979 0% Expenditures Purchased Services Professional Services/Administrative Fees $ 20,099 $ 300,000 $ 150,000 $ 150,000 50% Advertising 228 _ _ _ 0% Other Services/Charges(Complete Ground Services) 4,320 8,000 8,000 0% Other Services/Charges(Payments to Other Govt-Taxes) 599 3,000 3,000 0% Capital Outlay _ _ poi, 25,245 311,000 161,000 150,000 48% Total Expenditures-Gateway Northeast 28,245 311,000 161,000 150,000 48% Not Income Gateway Nort east Projected Ending Fund Balance As of December 31 $ (1,146,290) $ (1,457,290) $ (1,618,290) 475- BAE -Superfund Site TIF#20 Beginning Fund Balance As of January 1 (Estimated) $ - $ - $ - Revenues City Revenues Tax Levy $ $ $ $ poop Tax Levy-Delinquent Years 0% 0% Total Revenues-SAE 0% Expenditures Purchased Services Professional Services/Administrative Fees $ $ $ 20,000 $ (20,000) 100% Advertising _ 0% Other Services/Charges(Complete Ground Services) 0% Other Services/Charges(Payments to Other Govt-Taxes) 0% Capital Outlay - 0% 20,000 (20,000) 100% Total Expenditures SAE - - 20.000 (20,0001 100% et Income,-FM Projected Ending Fund Balance As of December 31 $ - $ - $ (20,000) K:\HRA\HRA Budgets\HRA 2014 Preliminary Budget-With PB's Changes.xlsx Unaudited Data-For Management Purposes Only Fridley Housing Redevelopment Authority Preliminary 2014 Budget Account Description 2012 Actual 2013 Budget 2014 Budget $Variance %Variance 476 - BAE - Hazardous Subdistrict TIF#20a Beginning Fund Balance As of January 1 (Estimated) $ - $ $ Revenues City Revenues Tax Levy $ $ $ $ 0% Tax Levy-Delinquent Years 0% 0% Total Revenues-BAE•Hazardous Subdistrict _ _ 0% Expenditures Purchased Services Professional Services/Administrative Fees $ $ $ 20,000 $ (20,000) 100% Advertising 0% Other Services/Charges(Complete Ground Services) 0% Other Services/Charges(Payments to Other Govt-Taxes) 0% Capital Outlay-Improvements other than Building 700,000 (700,000) 100% 720,000 (720,000) 100% Total Expenditures-BAE-Hazardous Subdistrict - 720,000 (720,000) 100% Net Income-BAE-Hazardous Subdistrict - (720,000) Projected Ending Fund Balance As of December 31 $ $ $ (720,000) 477 - Northstar Station TIF#22 Beginning Fund Balance As of January 1 (Estimated) $ $ $ Revenues City Revenues Tax Levy $ $ $ $ 0% Tax Levy-Delinquent Years 0% 0% Total Revenues-Northstar Station - - - 0% Expenditures Purchased Services Professional Services/Administrative Fees $ $ $ 10,000 $ (10,000) 100% Advertising - 0% Other Services/Charges(Complete Ground Services) 0% Other Services/Charges(Payments to Other Govt-Taxes) 0% Capital Outlay - 0% 10,000 (10,000) 100% Total Expenditures-Northstar Station 10,000 (10,000) 100% Net Income-Northstar Station (10,000) Projected Ending Fund Balance As of December 31 $ $ $ (10,000) K:\HRA\HRA Budgets\HRA 2014 Preliminary Budget-With PB's Changes.xlsx Unaudited Data-For Management Purposes Only v Fridley Housing Redevelopment Authority Preliminary 2014 Budget Account Description 2012 Actual 2013 Budget 2014 Budget $Variance %Variance 501 - Housing Replacement (1997-2024) Scattered Site Beginning Fund Balance As of January 1 (Estimated) $ (9,560) $ 172,257 $ (216,043) Revenues City Revenues Tax Levy $ 26,395 $ 30,000 $ 20,000 $ (10,000) -33% Other Miscellaneous Revenue Interest on Investment Earnings 4,372 2,200 5,700 3,500 159% Sale of Misc Property 146,258 90,000 120,000 30,000 33% Miscellaneous Revenues 122,592 - - - 0% 273,221 92,200 125,700 33,500 36% Total Revenues-Housing Replacement 299,617 122,200 145,700 23,500 19% Expenditures Purchased Services Professional Services/Administrative Fees $ 6,502 $ 3,000 $ 2,000 $ 1,000 33% Other Charges 662 500 500 - 0% Services Contracted (Mowing Contract) 6,125 4,000 4,000 0% Other Services&Charges/Payments to other govts-Taxes 6,273 3,000 3,000 - 0% Capital Outlay/Building (Home Demolitions) 98,237 500,000 300,000 200,000 40% 117,800 510,500 309,500 201,000 39% Total Expenditures-Housing Replacement 117,800 510,500 309,500 201,000 39% Net Income-Housing Replacement 181,817 (388,300) (163,800) Projected Ending Fund Balance As of December 31 $ 172,257 $ (216,043) $ (379,843) K:\HRA\HRA Budgets\HRA 2014 Preliminary Budget-With PB's Changes.xlsx Unaudited Data-For Management Purposes Only ACTION ITEM HRA MEETING OF NOVEMBER 7, 2013 CfiY OF FRIDLEY Date: October 28, 2013 To: Wally Wysopal, City Manager/ Executive HRA Director/ From: Paul Bolin, Asst. Executive HRA Director Subiect: Resolution to Create Interfund Loan - TIF District#20 HSS In October, the Authority approved the redevelopment agreement between the Authority and Hyde Development for the BAE site. The agreement spells out the obligations of both the Authority and the developer in redeveloping the site. A key provision, in the agreement, calls for the Authority to advance funds for eligible clean up costs identified in the MPCA approved Response Action Plan. Specifically, the Authority will provide up to $4.5M in "grants"to the project from its general fund. The general fund will then be repaid from the increment available in TIF District#20's Hazardous Substance Subdistrict. The attached resolution formally authorizes the loaning of money to the subdistrict and the repayment of money to the general fund. i Recommendation: In order to recover the Authority's investment in the redevelopment of the Northern Stacks (BAE/RER/Hyde Development) site, Staff recommends the Authority adopt the attached resolution, approving an interfund loan between the HRA General Fund and the Hazardous Substance Subdistrict No. 20A. Page 1 -Resolution No. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION APPROVING AN INTERFUND LOAN TO HAZARDOUS SUBSTANCE SUBDISTRICT NO. 20A (RER PROJECT) 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. 1.1 The Authority has approved the creation of Redevelopment Project No. 1 (the "Project Area") and adopted a Redevelopment Plan relating thereto, pursuant to and in accordance with Minn. Stat., Sections 469.001 to 469.047. 1.2 The Authority has further approved and adopted-"Hazardous Substance Subdistrict No. 20A (the "Subdistrict")within Tax IncreareFit Financing District No. 20 and the Project Area and approved a Tax Increment Financing Plan (the "TIF Plan") relating thereto pursuant to and in accordance with Minn. Stat., Sections 469.174 to 469.179, 469.001 to 469.047. 1.3 The Project Area and TIF Plan relate to the property currently owned by Fridley Land LLC, and is currently proposed for redevelopment to be known as Northern Stacks. 1.4 Minn. Stat. Section 469.178, Subdiv. 7 permit the Aute to finance expenditures permissible under Minn. Stat. Section 469.176, SubdiV-. 4 and identified on Exhibit A (the "Qualified Costs")from its general fund or any other fund under which it has legal authority to do so. 1.5 The Authority has determined it necessary to provide one or more loans from the Authority's general fund (the"TIF Loan")to the Subdistrict for Qualified Costs pertaining to the Project Area and the Subdistrict. 1.6 The Authority intends to reimburse itself for the Qualified Costs from tax increments to be generated from the Subdistrict in accordance with terms of this resolution (which terms are referred to collectively as the "TIF Loans"). Page 2 -Resolution No. 1.7 The Authority acknowledges the need to create and maintain an ongoing Register of Advances (the "Register"), as shown on Exhibit A, to reflect the continuing interfund loans and advances in accordance with the TIF Loans. Section 2. Terms of the TIF Loans. 2.1 The Authority shall repay the specific Authority fund from which the Qualified Costs were and are to be paid, the principal amounts as shown on Exhibit A, together with accrued interest from the date of each expenditure at a rate of 3.5% provided that it does not exceed the greater of the rates specified under(a) Minn. Stat., Sec.270.75 or(b)Minn. Stat., Sec. 549.09. The interest rate for each calendar year during the term of each TIF Loan shall be determined as of each January 1 using a rate not to exceed such maximum rate in effect as of that date as described above. The principal amount of all TIF Loans shall not exceed $4,500,000 and the outstanding principal balance at any time may not exceed $3,500,000. 2.2 Principal and interest payments (the"Payments")for each TIF Loan shall be paid annually on December 31 of the first year of receipt of Available Tax Increment (defined in Sec. 2.3 below)and on each December 31 thereafter(the"Payment Dates"), up to and including the earlier of (a) payment in full of each TIF Loan or (b) the termination date of the Subdistrict. Payments shall be applied first to accrued interest and the balance to the reduction of principal. Interest accruing from the date of each expenditure to the first Payment Date shall be compounded annually on December 31 of each year and added to principal. 2.3 Payments on each TIF Loan are payable solely from Available Tax Increment, which shall mean the tax increment available from the TIF District and available for that purpose from any other TIF District, after withholding allowable Authority administrative fees and reserve funds which together shall not exceed 12.5% and prior obligations, which shall include all general obligation or revenue bonds or notes for which the tax increment revenues of the Subdistrict are pledged. 2.4 The principal sum and accrued interest payable under each TIF Loan may be prepaid in whole or in part at any time without premium or penalty. No partial prepayment of any TIF Loan shall affect the amount or timing of any regular payments otherwise required to be made under the TIF Loans. 2.5 Each TIF Loan is evidence of internal borrowing by the Authority in accordance with Minn. Stat., Section 469.178, Subdiv. 7, and is a limited obligation payable solely from the Available Tax Increments pledged to the payment thereof under this resolution. The Authority shall have no obligation to repay any principal amounts of the TIF Loans or accrued interest thereon which may remain unpaid after the final Payment Date. 2 Page 3 -Resolution No. 2.6 The Authority may amend the terms of any TIF Loan at anytime by resolution of the Board, including a determination to forgive the outstanding principal amounts and accrued interest to the extent permissible under law. Section 3. Approval. 3.01 The Commissioners of the Authority hereby approve the creation of a Register of Advances and the appointment of the Finance Director of the City to maintain the Register to reflect an accurate accounting of the interfund loans and advances, and approves their repayment in accordance with the TIF Loans. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS DAY OF 20_. YES: NO: ABSENT: Chairman ATTEST: Executive Director 3 Page 4 -Resolution No. EXHIBIT A REGISTER OF ADVANCES QUALIFIED EXPENSE DATE PAID AMOUNT PAID MMB:4825-9416-5526,v. 1 4 iw. Memorandum Planning Division DATE: October 31,2013 TO: Fridley Housing and Redevelopment Authorit FROM: Scott Hickok,Community Development Director Julie Jones,Planning Manager Kay Qualley,Environmental Planner SUBJECT: Preliminary Park Plan Related to Northstar TOD Master Plan Development Background In December of last year,the City of Fridley was awarded an LCDA TOD Pre-Development Grant from the Metropolitan Council. The purpose of the$100,000 grant is to support the development of a master plan for the portion of the Northstar Transit Oriented Development(TOD)Zoning District that is planned to be located in the Northstar Transit TIF District.As the HRA is aware,this is the land area south of the Northstar Train Station to the freeway from Main Street west to the River. The purpose of the master plan project is to guide future redevelopment in Fridley's Transit TIF District and to give developers a vision of the amenities that will be in place when the area is fully developed. A completed master plan will serve as an incentive to private redevelopment since developers will be allowed to bypass the TOD master plan application process if they are redeveloping a site according to the pre-approved master plan, saving them time and money.It will also serve as a guide for how transit TIF dollars can be spent to support the transit infrastructure needs of the district. There has been a delay of several months getting started on the project,because the grant agreement contains language that the funds cannot be used for regional park planning.With Islands of Peace Park being part of the Riverfront Regional Park and a key feature in the future master plan, staff had to overcome this restriction.This was accomplished by the City working cooperatively with County Parks to develop a concept plan for redevelopment of the park with City and County funds. A consultant was hired to complete a simple plan based on staff's vision for the park and how it could be reconfigured and improved to make the riverside park an amenity that provides views and desirable access to trails along the River.The key function of the plan was to demonstrate to the Metropolitan Council staff that the City has no intentions of removing park land but rather to expand it and add amenities to it. The attached drawing is a result of that effort.The drawing shows how the redesigned and enlarged park would support surrounding multi-family housing and the abutting elementary school.Trails could be INFORMATIONAL ITEM ri HRA MEETING OF NOVEMBER 712013 CRY of FRIDLEY Date: October 28, 2013 To: Wally Wysopal, City Manager From: Paul Bolin, Assistant Executive HRA Director Subiect• Gateway Northeast - Update On September 5, the Authority and the Trident Group, signed a Letter of Understanding spelling out responsibilities for both parties to explore development of the property. If the HRA and Trident reach agreement that the project should move forward, a development agreement will be put together in February or March allowing construction to start next spring. Trident has been busy since signing the letter of understanding. Over the past 2 months Trident has completed their survey work for the site, met with title experts, and met with private and public utilities to assist in laying out the development on the site. Trident is preparing to submit a Master Plan of the proposed development to the City in mid-November. Demolition of the former Fridley Animal Hospital has started with the removing/recycling of interior fixtures, cabinets and other reusable items. Exterior demolition work will take place over the next few weeks. Fridley HRA Housing Program Summary Cover Page November 7, 2013 HRA Meeting Report Description Loan Application Summary Loan application activity (e.g. mailed out, in process, closed loans) for Sep. 15 to Oct. 15th and year-to-date. Loan Origination Report Monthly loan originations 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\2013\November 7,2013\Housing Program CoverNov 13.doex Fridley Loan Summary Report cee Activity for Period 9/15/2013 - 10/15/2013 Center for Energy and Environment Application packets requested/mailed: This period: Year-to-Date: 30 Residential Advisor Visits: This period: Year-to-Date: �7 Loans currently in process for residents in your City: Closed Loans This period: Year-to-Date: Fridley Units Units Closed End 0.00 0 136,045.83 7 Last Resort 0.00 0 9,635.00 2 Total 0.00 0 145,680.83 9 Leveraged Funds This period: Units Year-to-Date: Units CEE 0.00 0 2,956.00 1 Total 0.00 0 2,956.00 1 Types of Improvements Financed YTD #of Projects %of Total Types of Properties Financed YTD # %of Total Air Conditioning 1 8.33 Single Family Residence 10 100.00 Heating System 2 16.67 Insulation 1 8.33 Kitchens 1 8.33 Other Exterior Improvements 1 8.33 Other Interior Improvements 2 16.67 Roof 1 8.33 Siding,Stucco, Exterior Paint 1 8.33 Windows, Doors,Storm Windows,Storn 2 16.67 ���R o .gyp cc - '��- IL- ts UA _ N ti LO v c zLUv 0 w J Cl- HT'.8 4 �aaF s 9111 A 4 1 a � n6'19 �"�; cud a 10.19 r 19t 19 16 W 61 y. h aS�LaSiSBo i(.VLi5i�1L �2