HRA 06/05/2014
June 5, 2014
HRA Meeting
Regular Meeting Agenda
7:00 p.m.
Call to order
Roll call.
Action Items
1. Approval of expenditures
2. Approval of Meeting Minutes
3. Election of Officers
4. Continuation of Public Hearing and Authorization of Sale, as part of
Redevelopment Agreement, of Gateway Northeast Property to Cielo Partners,
LLC
5. Approval of Phase XI Housing Replacement Program
6. Approval of Agreement to Purchase 7011 University Avenue NE
Informational Items
1. Housing Loan Program Update
Adjournment
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Fridley Housing and
Redevelopment Authority
Action Item
DATE: May 30, 2014
TO: Wally Wysopal, City Manager / HRA Executive Director
FROM: Paul Bolin, Assistant HRA Director
SUBJECT: Election of Officers
-laws requires the Board of Commissioners to
annually elect a Chair and Vice Chair. Below is a list of the commissioners and the
length of their current appointments.
Commissioner End of Term
Larry Commers (Chair) June 2019
Stephen Eggert June 2015
Gordon Backlund June 2016
Bill Holm June 2017
Pat Gabel (Vice Chair) June 2018
Recommendation
Staff recommends that the Authority elect a Chair and Vice Chair, as required by the
-laws, to serve through June 2015.
ACTION ITEM
HRA MEETING OF JUNE 5, 2014
Date: May 28, 2014
To: Wally Wysopal, City Manager / Executive HRA Director
From: Paul Bolin, Asst. Executive HRA Director
Subject: Gateway Northeast - Cielo Land Sale and Development Agreement
Over the past two years, the Authority worked with Trident Development on the
redevelopment of the Gateway Northeast properties. Last September, the Authority
approved a letter of understanding with Trident that outlined the steps needed to bring a
development forward. After many months of working through platting issues, easement
vacations, and land use approvals, the project is ready to move forward and start
construction this summer.
The Development Agreement was originally slated to be reviewed and acted on at the
Authority's May 1st meeting. The bank funding the project wanted to spend some
additional time reviewing the development agreement. The Authority opened the public
hearing and continued the public hearing until June 5th. All parties are now in
agreement with the terms and conditions found in the agreement.
Attached you will find a memorandum from Attorney Loher, highlighting the minor
changes made, as well as an updated copy of the development agreement.
Recommendation:
Staff recommends the Authority continue with the public hearing on the sale of the
property to Cielo Partners, LLC, as part of the approval of the contract for private
redevelopment.
Staff recommends approval of the contract for private redevelopment, which includes
the land sale, of the Authority owned properties known as Gateway Northeast.
ACTION ITEM
HRA MEETING OF JUNE 5, 2014
Date: May 28, 2014
To: Wally Wysopal, City Manager
From: Paul Bolin, Asst. Executive HRA Director
Subject: Housing Replacement Program - Phase XI Creation_________________
Attached for Authority consideration is a resolution approving Phase XI 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 ten phases for a
total of 36 properties. Under special legislation approved in April 2010, the City can
designate up to 100 total parcels, inclusive of the 36 properties already in the program.
The parcels included in Phase XI include:
Address: Purchase Price:
5875 2nd Street $80,000
Recommendation
Staff recommends that the Authority approve the attached resolution amending the
Housing Replacement Program to include Phase XI.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF FRIDLEY
COUNTY OF ANOKA
STATE OF MINNESOTA
HRA RESOLUTION NO. 2014 - XX
RESOLUTION APPROVING AND ADOPTING THE ADDITION OF
PHASE XI TO HOUSING REPLACEMENT DISTRICT NO. 1
BE IT RESOLVED by the
Section 1. Recitals.
1.01. It has been proposed that the Authority approve and adopt the addition of Phase XI to
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
1.02. By City Resolution 66-1995 adopted October 23, 1995, the City Council of the City (the
creating Housing Replacement District No. 1.
1.03. By City Resolution 2010-99 adopted December 13, 2010, the Council approved a
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 XI 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 XI to the District to achieve the
oped
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 XI 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 5875 2nd Street PIN 23-30-24-23-0089
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 37 parcels in the
District with the inclusion of the Phase XI parcels. The maximum number of parcels that
can be included in the District is 100 parcels.
Section 3. Approval of Phase XI to the District.
3.01. The inclusion of the Phase XI 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 5th DAY OF JUNE, 2014.
________________________________
Lawrence R. Commers, Chairperson
ATTEST:
__________________________________
Walter T. Wysopal, Executive Director
MMB: 4832-3509-3000, v. 1
2
ACTION ITEM
HRA MEETING OF JUNE 5, 2014
Date: May 30, 2014
To: Wally Wysopal, City Manager / Executive HRA Director
From: Paul Bolin, Assistant Executive HRA Director
Subject: Approval of Agreement to Purchase - 7011 University Ave. Columbia Arena
Last fall the City Council and Authority asked staff to work on the acquisition of the
Columbia Arena property. The HRA ordered an appraisal of the property from Julie
Schwartz at Lake State Appraisals. The appraisal stated that the property, if cleared of
the buildings and development-ready, is worth $3,555,000.
On October 10th, an offer to purchase the arena site , in the amount of $2,600,000,
was submitted to the Fogerty family. Some weeks later, the Fogerty's daughter,
Danielle Caylor, responded to our offer by informing us that they were also entertaining
an offer from a church. Staff responded by withdrawing our offer, as we did not want to
compete with the private sector or non-profits.
In early February, the Fogerty family reestablished contact and stated that their
purchase agreement with the church was set to expire in March and that it did not
appear that the church was going to be able to raise the funds necessary to purchase
the property. On March 6th, Ms. Caylor informed us that she was not able to complete
a purchase with the church. At that point, negotiations resumed. After a number of
counteroffers from Ms. Caylor, on Thursday May 29th, we reached an agreement. After
8 months of on again/off again negotiations, the only concession made by the Authority,
to the original offer, was agreeing to pay $5,000 to an engineering firm that had done
some environmental work on the site.
While we do not have any particular projects identified for the site, our initial review
indicated that a combination of land sales price and tax increment could provide
repayment of a large portion of the site investment. Last Fall, we discussed the
potential of the City and HRA partnering to fund the acquisition and demolition of the
property. We discussed having each body make a $1,500,000 loan to the (not yet
created) Columbia Arena TIF District. A review of the Authority financial condition and
cash balances, completed last Fall, showed the Authority had the ability to partner on
this redevelopment opportunity, without impacting projects already committed to or
affecting the ability to take on other projects in the future. Staff will continue working
with legal counsel and Finance Director Nelson to identify the best way to fund this
purchase. Staff believes that the closing will not happen until September.
Recommendation:
Staff recommends the Authority make and approve a motion accepting the attached
purchase agreement for the Columbia Arena property located at 7011 University
Avenue.
Fridley HRA
Housing Program Summary
Cover Page
June 5, 2014 HRA Meeting
ReportDescription
Loan Application Summary Loan application activity (e.g. mailed
out, in process, closed loans) for month
and year-to-date.
Loan Origination Report Loan originations for 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.
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