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HRA 10/02/2014 October 2, 2014 HRA Meeting Regular Meeting Agenda 7:00 p.m. Call to order Roll call. Action Items 1. Approval of expenditures 2. Approval of September 4, 2014 Meeting Minutes 3. Approval of 2015 HRA Meeting Dates 4. Approval of Amendment to Cielo Redevelopment Agreement 5. Approval of Amendment to DEED Grant Agreement 6. Approval of Amendment to MNCEE Home Energy Squad Contract 7. Authorization to Solicit Bids for Demolition of 7011 University Avenue NE Informational Items 1. Housing Program Updates Adjournment K:\HRA\Agenda Packets\2014 Agenda Packets\October 2, 2014\October-2014 Agenda Outline.docxK:\HRA\Agenda Packets\2014 Agenda Packets\October 2, 2014\October-2014 Agenda Outline.docx CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION September 4, 2014 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:00 p.m. ROLL CALL: MEMBERS PRESENT: William Holm Larry Commers Pat Gabel Stephen Eggert Gordon Backlund OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Darin Nelson, Finance Director Wally Wysopal, City Manager Jim Casserly, Development Consultant ACTION ITEMS: 1.Approval of Expenditures MOTION by Commissioner Eggert to approve the expenditures. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2.Approval of August 7, 2014, Meeting Minutes MOTION by Commissioner Gabel to approve the minutes. Seconded by Commissioner Eggert. Commissioner Gabel asked for the following corrections to be made: nd Page 3, item 4, 2 Authority to th Page 4, 4 cement board prodcut product UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MINUTES APPROVED AS AMENDED 3.Resolution for Approval of 2014 Tax Levy for Taxes Payable in 2015 City of Fridley Housing and Redevelopment Meeting of September 4, 2014 2 Darin Nelson, Finance Director, stated that within their community to support housing and redevelopment efforts. The levy is equal to .0185% of taxable market value. The 2015 levy will allow the HRA to collect $360,487 and the impact on taxpayer is as follows: $135,000 home - $24.98; $150,000 home - $27.75 $1 million commercial property - $185.00 Mr. Nelson said that staff recommends approval of the resolution consenting to the HRA Tax Levy as it provides the HRA the ability to fund ongoing and future redevelopment efforts and provides the ability to meet housing needs. Council will act on this item on September 8, 2014 and the levy will be certified and delivered to the County by September 10, 2014. Chairperson Commers said this is based on the market values as of January 1, 2013. Mr. Nelson replied that is correct Chairperson Commers asked if the HRA was limited in using these funds for rehab housing only or if the funds could be used for anything. Jim Casserly , Development Consultant, replied that the funds could be used for anything in authorized in the HRA Act. MOTION by Commissioner Gabel to Approve the 2014 Tax Levy for Taxes Payable in 2015. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4.Approval of Home and Garden Show Administrative Contract Paul Bolin , Assistant HRA Executive Director, stated that Fridley has been fiscal agent for the Home & Garden Show for 17 years. (Blaine & Mounds View) Revenues from booth rental cover expenses for show. Since 2005, the H&G Show has contracted with Marsha Wagner/Castle Visions to perform administrative tasks. Staff recommends approval of the contract authorizing Castle Visions to perform admin work for 2015 H&G Show. This will be held at the National Sports Center in Blaine on February 28th, 2015. Commissioner Eggert noted that last year vendors and attendance had increased. Mr. Bolin replied that last year about 900 attended and the year before 700. Typically there are about 1,000 attendees. MOTION by Commissioner Holm to Approve the Home and Garden Show Administrative Contract. Seconded by Commissioner Eggert. City of Fridley Housing and Redevelopment Meeting of September 4, 2014 3 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 5.Approval of Amendment to DEED Grant Contract Northern Stacks Paul Bolin , Assistant HRA Executive Director, said that late last year the Northern Stacks project was awarded $835,000 from DEED as part of a contamination clean up grant. This grant was for phase 1 of the development. The purpose of the grant program is to assist to cleanup contamination in accordance with the response action plan (RAP). The original contract was not clear on what is eligible for inclusion as a local match. Mr. Bolin stated that DEED is now considering capping to be an eligible local match. TRBA funds may be used for 13% of the match. Staff recommends that the Authority approve an amendment to as an eligible expense for the local match. Chairperson Commers thought it was a little complicated but it respect to the impact of the original financial commitment. Mr. Bolin replied that it allows the Authority to count the cap as their local match and this is a good thing. Chairperson Commers asked if capping was used in other instances. Mr. Bolin replied that it was used for the Murphy / Onan developments. Commissioner Holm asked if capping was intended to be used in an area where buildings are now under construction. Mr. Bolin replied yes; there are a number of areas being capped during this first phase which is why there is such a large cost. There is over $2M in capping expenses just in this first phase of the development. MOTION by Commissioner Gabel to Approve the Amendment to the DEED Grant Contract Northern Stacks. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 6.Reinstatement of and First Amendment to Commercial Industrial Purchase Agreement 7011 University Avenue NE Paul Bolin , Assistant HRA Executive Director, stated that a Phase I Environmental Study identified that refrigeration equipment was removed from arenas and there was a potential that Freon was not properly recovered. Braun-Intertec conducted Phase II Environmental City of Fridley Housing and Redevelopment Meeting of September 4, 2014 4 Study and sampled soils, water, and soil vapor. The soils and water were clean; traces of Freon were found in the soil vapor. Little information is known on the required treatment of Freon vapor in soils. Braun is doing more research on our behalf to determine extent / cost of treatment needed. Mr. Bolin said that the closing on this property has been postponed to the end of September. a human being is that it displaces oxygen. Freon vapors and chemicals are very volatile. If someone runs a plow through the soil and Freon vapor is exposed it will dissipate into the atmosphere. Mr. Bolin said that the item before the Authority tonight is a reinstatement and extension of the original purchase agreement. This has been reviewed and signed by the sellers. To provide time needed for additional Environmental research, Staff recommends approval of Commissioner Gabel asked if the soil vapor for this Freon would release if the soil were scraped. Mr. Bolin replied that it would be a vapor they would pick up in the soil samples. Chairperson Commers said it is the Carbon tetrachloride number we are concerned about and want to make sure that is not in the samples. MOTION by Commissioner Backlund to Reinstate the First Amendment to Commercial Industrial Purchase Agreement 7011 University Avenue NE. Seconded by Commissioner Eggert. Commissioner Holm stated that the original purchase agreement was cancelled to protect responsible for those expenses. He asked who would sign off on the actual purchase agreement. Mr. Bolin replied that the Chair or Vice Chair and the Executive Director or myself. Commissioner Holm asked if they would be informed before the agreement is signed. Mr. Bolin replied that if the samples come back and it clean up, staff issue. If research shows a big problem there will be a special meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY Informational Items 1.Housing and Loan Update City of Fridley Housing and Redevelopment Meeting of September 4, 2014 5 Paul Bolin, HRA Assistant Executive Director, reported that there were 3 loans closed in August and two home visits. The Home Energy Squad has been busy with 44 visits in August for a total of 73 year to date. Mr. Bolin reported that he spent time over the past few days working with Trident, their Title Company and attorney. Staff is trying to close by September 15. Wally Wysopal , City Manager, said would like to schedule a joint meeting with City Council to review the TOD Plan on September 22. Chairperson Commers asked what role the Authority has in connection with these meetings. Mr. Wysopal replied that the planning department has insights on how this area may be the Authority from providing feedback in this process. overtax the Authority with meetings but the last time the Authority attended, the input was greatly appreciated. Adjournment MOTION by Commissioner Eggert to adjourn. Seconded by Commissioner Holm. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND DECLARED THE MEETING ADJOURNED AT 7:45 P.M. Respectfully Submitted, Krista Peterson Recording Secretary AGENDA ITEM HOUSING & REDEVELOPMENT AUTHORITY OCTOBER 2, 2014 DATE: September 26, 2014 TO: Wally Wysopal, City Manager FROM: Paul Bolin, Assistant Executive HRA Director SUBJECT: Approval of Change to Cielo Redevelopment Contract Last June, the Authority approved a development agreement and authorized the sale of the Gateway Northeast property to Cielo Partners (Trident Development). Since that time the final land use approvals were granted and the plat was delivered to Anoka County for recording. Cielo's funding is in place and the closing will happen as soon as the County has the plat recorded. As we have continued to move towards closing on the property, Trident recently raised an issue with the timing of installing the underground stormwater system for Phase 2 of the development. SCHEDULE F - SITE IMPROVEMENTS In the redevelopment contract, under - Extraordinary Site Costs, Underground stormwater infiltration systems (Phase 1 and 2) is listed. We read it to mean that the system for phase 2 would be installed during phase 1. The Developer intended it to mean that both systems would be constructed in their respective phases, as the systems are approximately $200,000 each. After discussions with the developer, legal counsel and Chairman Commers it was determined that so long as the cost was capped at $200,000 for each system it did not impact the Authority. The developer sent the attached letter to memorialize the agreed upon change in interpreting this line in the agreement. Recommendation: SCHEDULE Staff recommends the Authority approve the minor change to the interpretation of, F - SITE IMPROVEMENTS - Extraordinary Site Costs, Underground stormwater infiltration systems (Phase 1 and 2) , found in the Cielo Gateway Northeast Redevelopment Agreement. AGENDA ITEM HOUSING & REDEVELOPMENT AUTHORITY OCTOBER 2, 2014 DATE: September 26, 2014 TO: Wally Wysopal, City Manager FROM: Paul Bolin, Assistant Executive HRA Director SUBJECT: MN DEED Redevelopment Grant Amendment - Northern Stacks INTRODUCTION Last month the Authority approved an amendment to the DEED Contamination Cleanup Grant for the Northern Stacks project to allow the developer's cost to "cap" the soils underneath buildings, and other areas, to count as a local match. This month the Authority is being asked to make a change to the DEED Redevelopment Grant in order to accurately reflect the amount of demolition and other eligible work being done on the site. You may recall that these grants were applied for one year ago, based on the best guesses for timing and redevelopment costs for the site. As the development is now underway there have been changes to what is actually happening on the site. Demolition costs, which were expected to be over $1.1M for the first phase, ended up being just over $200,000 as BAE's data center could not be moved and raised as part of the first phase. The amendment to the agreement will allow the grant funds to also be used for drive lanes, curbing and major utility installation. RECOMMENDATION Staff recommends approval of the amendment to DEED's Redevelopment Grant Contract to accurately reflect the improvements being constructed in the first phase of this large redevelopment project. AGENDA ITEM HOUSING & REDEVELOPMENT AUTHORITY OCTOBER 2, 2014 DATE: September 26, 2014 TO: Wally Wysopal, City Manager FROM: Paul Bolin, Assistant Executive HRA Director SUBJECT: Approval of Change to MNCEE Home Energy Squad Contract INTRODUCTION The Home Energy Squad program provided through the Center for Energy and Environment has been a huge success since its launch in April of this year. As of early September, 78 homes in Fridley have gone through the program, making them more energy efficient. The Home Energy Squad program has no income limitations, making it available to all residents of the community. The total cost for each visit is $120, with the HRA paying $70 towards each home visit. For $50 out of their pocket, homeowners receive a visit from two energy experts. During the 2 hour visit, diagnostic tests are run to identify inefficiencies in the home. The experts then install door weather stripping, water heater blankets, programmable thermostats, high efficiency light bulbs and efficient shower heads as needed. The Authority initially authorized an investment of $5,000 to write down the cost of these visits. Due to the popularity of the program, we are recommending authorizing another $5,000 to continue the program. The Authority has more than adequate funds in its revolving loan fund to allocate another $5,000 for these visits. As staff begins working on the 2015 budget, we will incorporate funding to continue this program into 2015. RECOMMENDATION Staff recommends approval of the amendment to the Home Energy Squad contract, allowing program to be funded through December 31, 2015. AGENDA ITEM HOUSING & REDEVELOPMENT AUTHORITY OCTOBER 2, 2014 DATE: September 26, 2014 TO: Wally Wysopal, City Manager FROM: Paul Bolin, Assistant Executive HRA Director SUBJECT: Authorization to Solicit Bids for Demolition of 7011 University Avenue INTRODUCTION Anticipating a late October closing on the Columbia Arena site, Staff would like the ability to move forward with soliciting bids to demolish the property. Due to potential liabilities, the deteriorated condition of the buildings and the expense associated with maintenance, Staff is recommending the buildings be demolished and parking lot removed as quickly as possible. In August, the HRA and City Council adopted resolutions declaring the properties blighted which will preserve the ability to put the parcels into a future TIF District. Over the years that the property has sat vacant, we have seen it become an attractive nuisance. Besides presenting a poor image along a busy thoroughfare, we continue to have problems with truckers illegally parking in the lot, vandals breaking in and spray painting the interior, thieves stealing copper, and continual reports of the building being "open to trespass". Removal of the buildings and the sea of asphalt is the only way to address these problems. Staff will work to solicit bids in anticipation of awarding the demolition contract on November 6th. Depending on cooperation from the seller, and the closing date, we may not be able to award the contract on November 6th. RECOMMENDATION Staff recommends the Authority authorize Staff to begin the bid solicitation process. Fridley HRA Housing Program Summary Cover Page October 2, 2014 HRA Meeting ReportDescription Loan Application Summary Loan application activity (e.g. mailed out, in process, closed loans) for Aug. to Sept. 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. K:\HRA\Agenda Packets\2014 Agenda Packets\October 2, 2014\Housing Program CoverOctober14.docx