HRA 12/05/2013 CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION
December 5,2013
CALL TO ORDER:
Chairperson Commers called the HRA Meeting to order at 7:00 p.m.
ROLL CALL:
MEMBERS PRESENT: William Holm
Pat Gabel
Larry Commers
Stephen Eggert
Gordon Backlund
OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director
Scott Hickok, Community Development Director
Wally Wysopal, City Manager
Jim Casserly, Development Consultant
Darin Nelson, Finance Director/Treasurer
ACTION ITEMS:
1. Approval of Expenditures
MOTION by Commissioner Holm to approve the expenditures. Seconded by Commissioner
Gabel
Commissioner Holm asked about the excess increment to Anoka County and what TIF
districts it included.
Darin Nelson, Finance Director, replied that was TIF districts that were decertified a couple
years ago, District 7 and there were outstanding tax petitions.
Commissioner Holm asked what the removal of asbestos, abatement and survey was for.
.Paul Bolin, HRA Assistant Executive Director, replied it was for the demo of the vet clinic
and home on Lafayette Street.
Commissioner Holm asked about the 11/27 payment for $840 if that was for the taxes for
the home that was recently purchased.
Mr. Bolin replied yes.
Commissioner Gabel asked what TIF District 7 was.
HRA Meeting of December 5, 2013 2
Mr. Nelson replied Winfield.
Commissioner Gabel asked about the charges for web development.
Mr. Bolin said that is for marketing the Home and Garden show so there is a bigger presence
on the web for this event. Staff wanted the site more visible and easily accessible for vendors
to sign up and make payments online.
Commissioner Gabel asked if the website is up and running now.
Mr. Bolin replied yes; www.northrnetrohomeandgarden.com.
Commissioner Backlund asked if there was a link to the web so if people google the event it
will take them to the web page.
Mr. Bolin replied yes; it should show up with any search tool.
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
2. Approval of November 7,2013 Meeting Minutes
MOTION by Commissioner Eggert to approve the minutes as presented. Seconded by
Commissioner Backlund.
Commissioner Gabel noted page 4, second paragraph, should read "dumpsters that does
don't."
UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MINUTES
APPROVED AS AMENDED
3. Approval of 2014 Budget
Darin Nelson, Finance Director, stated that the this is the final budget for 2014 and some
pages in the packet were missing, staff provided an updated complete budget tonight. An
overview of the proposed budget was presented in November and staff recommends a motion
approving the 2014 HRA budget as presented.
Mr. Nelson explained that a transfer of funds will affect the Onan fund balance. The
Authority would transfer $500,000 going to Gateway West,to cover a shortfall in that
district. Some of the Onan funds would be reclassified to cover eligible Gateway NE
expenditures. Financial statements are prepared and those changes will be reflected. There
is a $1.164M projected fund balance for the Onan district.
HRA Meeting of December 5, 2013 3
Commissioner Holm said that if Gateway West moves some money from Onan into there,
the negative fund balance would be less.
Mr. Nelson replied yes; it would net about the same because some of the expenses have not
shown up yet.
Jim Casserly, Development Consultant, added that some of the Gateway Northeast
expenditures in 2013 can be treated in different ways and they can be paid out of the general
fund or paid out of the Onan tax increment district. There is an opportunity to do that.
Chairperson Commers confirmed there would be a direct payment from the Onan district
without running the expense through the general fund, for eligible Gateway Northeast
expenses.
Mr. Casserly said that is a way to get some of the money that has been advanced back into
the general fund. It doesn't change the totals.
Commissioner Backlund asked if this meets GASB accounting requirements.
Mr. Nelson said that it is in accordance with GASB rules.
MOTION by Commissioner Gabel to approve the 2014 Final Budget. Seconded by
Commissioner Holm.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
4. Approval of TIF Inter-Fund Transfers
Paul Bolin, HRA Assistant Executive Director, said that in October staff reviewed cash
balances and found that the Onan district expires in 2015 and has a healthy cash balance
where other funds have a shortfall. Staff would like to transfer $500,000 from the Onan TIF
district to Gateway West which has a shortfall that cannot be paid back to the general fund.
Those funds will transfer from Gateway West to the general fund. Staff is asking for an
approval of a resolution authorizing the transfer of funds from the Onan district to Gateway
West TIF district.
MOTION by Commissioner Holm to approve the resolution to transfer funds from the Onan
district to Gateway West. Seconded by Commissioner Gabel.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
Mr. Bolin stated that staff identified cash balances in TIF districts that should be moved over
to the general fund.
Due to Other Funds Due from Other Funds
HRA Meeting of December 5, 2013 4
Fund 455 Lake Point- $130,000 Fund 100 General Fund - $130,000
Fund 467 57th Avenue - $15,000 Fund 100 General Fund - $15,000
Fund 468 Gateway East - $18,000 Fund 100 General Fund - $18,000
Fund 470 Gateway West - $600,000 Fund 100 General Fund - $600,000
Staff recommends a motion approving transfers from the above TIF districts to the HRA
general fund.
MOTION by Commissioner Gabel to approve transferring funds from TIF districts to the
HRA general fund. Seconded by Commissioner Backlund.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
Mr. Bolin said that staff recommends a motion reclassifying $562,039.62 in Gateway NE
expenditures as eligible expenses from the Onan TIF district. This will be used for costs to
pay for the purchase and demolition of the vet clinic.
MOTION by Commissioner Gabel to reclassify $562,039.62 in Gateway NE as eligible
expenses from the Onan TIF District. Seconded by Commissioner Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
5. Approval of Contract Extension - CEE
Paul Bolin, HRA Assistant Executive Director, said that the HRA has contracted with CEE
since 1996. This program administration includes marketing, processing applications,
determining eligibility and customizing loans to individual needs.
Mr. Bolin said that CEE provides residents technical assistance on remodeling, energy
conservation and indoor air quality. The CEE/HRA partnership allows residents to access
other loan dollars and residents have been pleased with CEE. HRA pays $550 per loan and
$130 per remodeling advisor visit. CEE has a number of new programs coming out, some
which may have potential for Fridley residents. CEE Staff would like to come to the
February meeting to talk about the new programs. One is the "home energy squad", similar
to the operation insulation program. This new program takes it further and does blower door
tests and for$70, will replace light bulbs with fluorescent bulbs and install a programmable
thermostat. This is funded by Excel and Centerpoint Energy. Staff recommends that the
HRA approve the contract extension through 12-31-14.
MOTION by Commissioner Eggert to extend the contract with CEE through 12/31/2014.
Seconded by Commissioner Gabel.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
HRA Meeting of December 5, 2013 5
INFORMATIONAL ITEMS:
1. Housing Loan Program Update
Paul Bolin, HRA Assistant Executive Director, said that in November no new loans were
issued and our numbers are similar to other communities around us. Housing has picked up
and market values have increased. People are not borrowing money to remodel and this is
not only a Fridley issue, it is happening in all suburban communitities. Staff is working on
marketing efforts to promote this program. There were 10 loans year to date and 7
remodeling advisor visits year to date. The Home and Garden Show that is coming up on
January 25 from 9-3PM and usually generates interest in loan program.
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
7:37 P.M.
Respectfully Submitted,
Krista Peterson
Recording Secretary