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HRA 12/04/2014 December 4, 2014 HRA Meeting Regular Meeting Agenda 7:00 p.m. Call to order Roll call. Action Items 1. Approval of Expenditures 2. Approval of November 6, 2014 Meeting Minutes 3. Approval of 2015 Budget 4. Authorization of Funds Transfer 5. Approval of Resolution Supporting DEED Grant Application - Infrastructure 6. Approval of Proposal for Public Participation Process - Columbia Arena Informational Items 1. Housing Loan Program Update Adjournment K:\HRA\Agenda Packets\2014 Agenda Packets\December 4, 2014\December-2014 Agenda Outline.docxK:\HRA\Agenda Packets\2014 Agenda Packets\December 4, 2014\December-2014 Agenda Outline.docx CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION November 6, 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 Scott Hickok, Community Development Director Darin Nelson, Finance Director Wally Wysopal, City Manager Jim Casserly, Development Consultant ACTION ITEMS: 1.Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2.Approval of October 2, 2014, Meeting Minutes MOTION by Commissioner Gabel to approve the minutes. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MINUTES APPROVED 3.Approval of Lot Sale 521 Fairmont Street MOTION by Commissioner Backlund to open the public hearing. Seconded by Commissioner Holm. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING OPENED AT 7:02 P.M. City of Fridley Housing and Redevelopment Meeting of November 6, 2014 2 Paul Bolin, HRA Assistant Executive Director, stated that Mike Nelson with Habitat for Humanity would like to purchase 521 Fairmont Street. The property sits west of East River Road. The home will be a three bedroom, two bathroom home with a total of 1,400 square feet. The home design and materials meet the requirement of the housing replacement program and the style fits in well with the neighborhood. Staff recommends the Authority approve this sale. Mike Nelson, Habitat for Humanity, said that he looks forward to partnering with the City on another affordable home ownership opportunity. A lot of Minnesota products will be used in this home. They are working through Anoka County for funding and plan to get the contract signed within 60 days. The plan is to cover the lot to get a quick start in the spring. Commissioner Gabel asked how the family would be chosen for this home. Mr. Nelson said that there are 1,300 people in the Twin Cities interested in this program every year. They will get down to 700 applications and about 250 families would qualify for this program, of which 55 homes would be produced. It is a very competitive process. Currently there are four families in a mortgage pool who are ready for this home and they live in the proximity. Volunteers interview families and visit where they live now; it is a lengthy process and families are selected on a point system. There is a 22 hour class on how to become a homeowner and 500 sweat equity hours they must participate in. It takes a total of 18 months to get a home and not everyone gets a home because of the demand for this program. Commissioner Holm asked if the lot was vacant now because the photo in the presentation showed a home on the lot. Mr. Bolin said the lot is vacant; an old aerial photo was used in the presentation. Chairperson Commers asked if only half of the basement would be finished. Mr. Nelson homeowner has the ability to finish off the home as they wish. MOTION by Commissioner Backlund to close the public hearing. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:08 P.M. MOTION by Commissioner Gabel to approve the sale of 521 Fairmont Street. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY City of Fridley Housing and Redevelopment Meeting of November 6, 2014 3 th 4.Approval of Lot Sale 281 57 Place MOTION by Commissioner Holm to open the public hearing. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:09 P.M. Paul Bolin , HRA Assistant Executive Director, said that Mr. Migalyuk has submitted a lot reservation agreement to build a new home on this lot. Over the last week he has come up with a builder and the first draft of the house plan. This is the final lot to sell off in the southern portion of the Gateway West neighborhood. Earlier today Real Estate Transformers sent over a draft of what the home would look like. There is a section of the home proposal that is not up to city code; the garage cannot sit more than the living area of the home and the current plan has the garage sitting need to be made to the design to address this problem. Staff will not close on the lot until the design meets HRP guidelines. This home will have five bedrooms, three bathrooms and 2,800 total finished square feet between the two levels. Staff recommends authorization of the sale of this lot. Commissioner Gabel asked if Mr. Migalyuk was a broker. Mr. Bolin answered that he is the homeowner. There is a change to the resolution in the packet. Section 2.02 Authority hereby finds that it has approved and adopted TIF District #18, Gateway West, pursuant to and in accordance with Laws of Commissioner Holm asked if this was the final sale of the lots for Gateway West. Mr. Bolin replied that is correct. MOTION by Commissioner Holm to close the public hearing. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:17 P.M. th MOTION by Commissioner Gabel to approve the lot Sale of 281 57 Place. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 5.Approval of Lot Sale 611 Buffalo Street MOTION by Commissioner Eggert to open the public hearing. Seconded by Commissioner Holm. City of Fridley Housing and Redevelopment Meeting of November 6, 2014 4 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:18 P.M. Paul Bolin , HRA Assistant Executive Director, said that this lot is and the Authority purchased this lot in 1998. It is in a flood plain and relatively narrow and difficult to build on this lot. In this case Mr. Hoffer, who owns the adjacent property at 581 Broad Avenue, would like to purchase this property to combine with his existing lot to create a larger yard for his dogs to run. Mr. Hoffer has watched the HRA crew mow this property over the years and thought it is now time for him to take over the mowing. He has made an offer that seems fair based on the fact this lot is not buildable. He is going to sign a lot combination form at the closing to combine the lots and file with the County. Staff recommends approval of the resolution to authorize the sale to Mr. Hoffer. The lot combination form will prevent future home construction and the sale provides future maintenance savings for the Authority. Commissioner Backlund stated that it appears from the aerial photo that the property to the west would be an lot if so inclined. Mr. Bolin replied yes; the lot next to that is , not the HRA. Commissioner Backlund asked if properties were taken, out of the likelihood of flooding when the dikes were added. Scott Hickok , Community Development Director, replied that it did lessen the flood potential but FEMA still believes the flooding potential exists. The creek could back up and the area could flood because it is such a low area. MOTION by Commissioner Gabel to close the public hearing. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 7:24 P.M. MOTION by Commissioner Gabel to Approve the Lot Sale of 611 Buffalo Street. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 6.Review 2015 Preliminary Budget Darin Nelson, Finance Director, reviewed the 2015 preliminary budget and provided an update of the revenues and expenses. City of Fridley Housing and Redevelopment Meeting of November 6, 2014 5 7.Approval of Resolution Supporting Grant Application DEED Redevelopment Paul Bolin , HRA Assistant Executive Director, stated that there has been a lot of activity lately on this site; lots of clean up and now construction. As Hyde Development moves forward with redeveloping the second phase of the BAE site, they have identified a need for approximately $8M in grant funds. Tonight Mr. Hyde is looking for support for a DEED contamination clean up grant. Mr. Hyde applied for the same grant last year and received $835,000 from the program and this time he is looking for $850,000 from this program. These funds will assist with contamination investigations and cleanup of contamination in accordance with a Minnesota Pollution Control agency approved response action plan (RAP). This program provides funding to sites that are most likely to be redeveloped in the very near future and its goal is to clean up contamination in order to allow a site to retain and create new jobs. Mr. Bolin said that the second request is to obtain a grant through Metropolitan Council Tax Base Revitalization Account (TBRA) grant program, for the second phase of the Northern Stacks Redevelopment Project. TBRA awards $5M annually to clean up contaminated land for redevelopment. The goals of the program are to clean up polluted sites, increase the local tax base, add jobs and support projects that are poised for development. Last year $547,000 was awarded and this year Mr. Hyde is applying for $550,000. Staff is asking the Authority to adopt these two resolutions. Chairperson Commers asked if staff takes care of the oversight to make sure the contracts are complied with. Mr. Bolin replied that Darin Nelson and himself will take care of the oversight and answer any questions. Chairperson Commers asked if staff would ensure that Mr. Hyde and developers comply with the contracts. Mr. Bolin replied yes, there will be a series of different pay requests, applications and invoices along with sworn construction statements. Mr. Hyde stated that this is the second of four phases of redevelopment which is going faster than ever imagined. The first building will be compete 12/19 of this year and there are nd several prospects of tenants. Now there is an opportunity to redevelop the 2 phase of the project with using some portions of the existing building for an existing tenant. This will be a marvelous job creation and retention project. The grants were submitted on Monday and the resolution will complete that application. Commissioner Gabel noted that the grants were already submitted and asked if the resolution could be submitted subsequently. Mr. Hyde met with Mr. Bolin and a representative from DEED and Met Council to preview the applications and budget. As long as the resolutions are delivered everything will be in good shape. City of Fridley Housing and Redevelopment Meeting of November 6, 2014 6 Commissioner Holm asked what is requested from DEED. Mr. Hyde$ said that the fund request has increased to $900,000 from DEED and 600,000 from Met Council. The goal was to try to match the last allocation that was successful. The projects tech center will create more jobs and tax base which is one of the metrics to score in these competing grant applications. The goal is to get a high score to ensure the success of the grant being funded. These are very competitive grants and allocations be known until the end of December. Commissioner Holm asked if all the funds will be used to clean up the site and if any restrictions were in place to use funds from one provider. This could be a financial hassle to keep track of what funds can be used for. Mr. Hyde replied that when this program first started in the ey were far more complex about what they fund. Met Council funds asbestos removal, DEED will not. DEED will fund cleanup and Met Council will not. The goal is to get feedback before information is submitted to allocate what is acceptable and hope scores are high enough to get the grant. The line items are reviewed in heavy detail, requests are assembled and hopefully funds will be awarded. Commissioner Eggert noted that there are lots of points for LEED certifications. Mr. Hyde replied that certain points can be delivered with the design to get over the top and that depends on what the tenant wants to do inside. Offers will be made to the tenant to decide what they want to do and this will result with the LEED certification. Commissioner Backlund asked if the numbers in the handout needed to be revised to approve this request. Mr. Bolin replied that there are no specific dollar amounts in the resolutions. Commissioner Gabel asked for a refresher on the funds that were used for capping and if it was authorized. Mr. Hyde replied that typically there is a local match portion of the grant and in order to get the grant a local match is needed which falls into the Authority tax increment and hazardous sub district grants. Commissioner Gabel asked if the Navy treatment plant would be moved. Mr. Hyde is a significant savings to the project. Commissioner Backlund asked how much concrete would be used to cover capping the soil and if it would be concrete or asphalt. Mr. Hyde replied that there will be black top on the park and drive area and concrete on the side. City of Fridley Housing and Redevelopment Meeting of November 6, 2014 7 MOTION by Commissioner Gabel to Approve the Resolution Supporting Grant Application DEED Redevelopment. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 8.Approval of Resolution Supporting Grant Application Met Council TBRA MOTION by Commissioner Backlund to approve the resolution supporting grant application Met Council TBRA. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 9.Approval of Modification to Northern Stacks Redevelopment Contract Paul Bolin , HRA Assistant Executive Director, stated that this project is moving along quickly. The development agreement was signed a year ago which HRA provided grant funds for each phase to pay for items out of the hazardous substance sub district for the remediation action plan for phase one. In the overall agreement HRA has disbursement of funds tied to the building permit for phase 2. Each phase is capped at $1.0M and not more than $3.0M can be outstanding at any one time. The trigger to start disbursement of funds for phase 2 is the issuance of a building permit. In this case Mr. Hyde has moved to phase 2 to rework the existing building and has an immediate need for HRA grant funds for remediation and a building permit will not be issued until February or March. Mr. Bolin said that staff is asking for an amendment to tie the disbursement of funds for phase 2 to signing the lease with a large employer/tenant who is currently in that northern building, that will remain in that building. The eligibility to sign that lease will be used rather than the issue of a building permit. Grants will be repaid through the hazardous substance sub district. Over $300,000 per year will be coming in until all grants are paid off. There is very little risk to the HRA to make this change and it allows Mr. Hyde to keep moving forward with phase 2 and keep the tenant on site. Commissioner Eggert said that staff is asking for a simple sequence of events; moving from a disbursement from building permit to the signing of the lease. Jim Casserly , Development Consultant, said this authorizes the ability to release funds and still meet all the requirements set in the contract. There will still be certain regulations to follow and certain funds can only be used for specific purposes. MOTION by Commissioner Eggert to approve the Modification to the Northern Stacks Redevelopment Contract. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY Informational Items City of Fridley Housing and Redevelopment Meeting of November 6, 2014 8 Paul Bolin, HRA Assistant Executive Director, said that the Columbia Area sale closed on th October 30. The building is secured and it took Advanced Companies 2 ½ days to secure the building. There was broken glass, wiring stolen, spray paint cans, lights broken; a big mess everywhere. The next step is to schedule a demolition in late December or early January and plan for future uses. 1.MN CEE Housing Programs Update Paul Bolin, HRA Assistant Executive Director, reported that 2 revolving loans were closed, one deferred and two other loans making a total of 20 year to date. There was one remodel advisor visit making a total of six year to date. The Home Energy Squad had 13 visits in October for a total of 97 year to date. Home Energy Squad is booked out until mid- December. 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 THE MEETING ADJOURNED AT 8:45 P.M. Respectfully Submitted, Krista Peterson, Recording Secretary COMMUNITY DEVELOPMENT DEPARTMENT HOUSING AND REDEVELOPMENT AUTHORITY Memorandum DATE: November 25, 2014 TO: Wally Wysopal, City Manager / Executive Director of HRA FROM: Darin Nelson, Finance Director Paul Bolin, Assistant Director of HRA SUBJECT: Motion Approving the Revised 2014 Budget and 2015 Budget Attached you will find an updated 2015 budget for Authority approval. The attached budget is th virtually the same as the preliminary budget presented on November 6, except for a couple minor changes to the 2014 Revised Budget column. The first change includes the increase of the I was planning to transfer $1.35 million in 2014 from the City to the HRA for the purchase of Columbia Arena and once the demo is complete I would transfer the remaining $150,000 to the HRA. However, for simplicity sake and tracking purposes, I moved the entire $1.5 million to the HRA on December 1, 2014. The second change of note is the $600,000 reduction of Transfers from other Funds in the General Fund and a corresponding reduction of Transfers to other Funds within the Housing Replacement Fund. This $600,000 was already setup as a Due To/Due From within each respective fund, so there is no need to record the repayment of funds within the budget. The repayments have no effect on fund balance since the funds are already reporting their respective receivable and payable. The final change of note is reflected within Fund 476, the BAE Hazardous Subdistrict TIF District. The district received its first TIF payment in 2014, so the revised 2014 column reflects that addition increment coming into that fund. To recap, the budget is divided into three separate categories. The General Fund covers the bulk of the administrative and overhead costs of the HRA. The Housing Loan Program Fund covers the housing related programs and services (CEE programs, etc.). The Capital Outlay Funds include all of the tax increment (TIF) districts. Staff recommends the Authority approve the attached budget for 2015 that also includes the revised budget for 2014. Fridley Housing & Redevelopment Authority 2015 Final Budget All Funds Summary BeginningEnding Fund Fund DescriptionFund BalanceRevenuesExpendituresBalance 100 - General Fund$ 11,443,086 $ 2,143,387$ 2,421,110$ 11,165,363 Special Revenue Fund 265 - Housing Loan Programs$ 2,827,435 $ 87,000$ 57,100$ 2,857,335 Capital Projects Funds 455 - Lake Pointe (1985-2025)$ (304,806) $ 652,500$ 521,700$ (174,006) 458 - Onan (1989-2015) 134,992 292,600 29,000 398,592 462 - University/Osborne (1992-2018) 246,930 50,300 5,000 292,230 463 - McGlynn (1992-2019) 108,800 28,350 2,800 134,350 464 - Satellite (1995-2023) 107,771 33,250 3,300 137,721 467 - 57th Ave (1997-2023) (6,179) 22,000 2,200 13,621 468 - Gateway East (2001-2028) (625,247) 24,000 2,400 (603,647) 470 - Gateway West (2005-2032) (624,256) 10,300 1,300 (615,256) 472 - Main Street (2009-2034) (2,996) 100,300 100,000 (2,696) 474 - Gateway Northeast (2017-2042) (3,291,712) - 15,000 (3,306,712) 475 - BAE -Superfund Site (52,220) - 20,000 (72,220) 476 - BAE - Hazardous Subdistrict (650,132) 356,000 1,340,000 (1,634,132) 477 - Northstar Station (13,841) - 13,600 (27,441) 501 - Housing Replacement (1997-2024) Scattered Site (39,662) 120,000 310,100 (229,762) Total Capital Projects Funds$ (5,012,558) $ 1,689,600$ 2,366,400$ (5,689,358) Total All Funds$ 9,257,963 $ 3,919,987$ 4,844,610$ 8,333,340 Fridley Housing Redevelopment Authority Final 2015 Budget Account Description 2013 Actual 2014 Budget 2014 Revised 2015 Budget $ Variance % Variance 100 - General Fund Beginning Fund Balance As of January 1, 2013$ 8,391,849$ 11,427,867$ 11,427,867$ 11,443,086 Revenues City Revenues Tax Levy$ 373,036$ 380,638$ 380,638$ 360,487$ (20,151)-5% Tax Levy - Delinquent Years - - - - - 0% 373,036 380,638 380,638 360,487 (20,151)-5% Other Miscellaneous Revenue Interest on Investment Earnings 4,916 28,500 28,500 20,000 (8,500)-30% Rent and Royalties (Fairview - parking lot rental) 9,603 9,600 9,600 9,600 - 0% Sale of Miscellaneous Property (Medtronic Land Repymt) 43,914 140,000 140,000 130,000 (10,000)-7% Miscellaneous Revenues (TIF Admin Fees) 99,860 136,650 136,650 123,300 (13,350)-10% Development Grants (Deed & Met Council) - - 1,882,000 1,500,000 (382,000)-20% 158,293 314,750 2,196,750 1,782,900 (413,850)-131% Other Finance Sources Transfer from Other Funds 2,938,173 - 1,000,000 - (1,000,000)-100% Transfer from City of Fridley - - 1,500,000 - (1,500,000)-100% 2,938,173 - 2,500,000 - (2,500,000)-100% Total Revenues - General Fund 3,469,502 695,388 5,077,388 2,143,387 (2,934,001)-58% Expenditures Salaries and Wages Full Time Employee Salary$ 89,220$ 90,655$ 90,655$ 101,300$ 10,64512% Administration Charges (Allocation) 205,700 209,800 209,800 214,000 4,2002% Employee Leave - - - - - 0% 294,920 300,455 300,455 315,300 14,8455% Benefits Medicare (1.45% of Salary) 1,329 1,320 1,320 1,469 14911% Social Security (6.2% of Salary) 5,682 5,620 5,620 6,281 66112% ICMA Contribution (7.5% of Salary) 6,468 6,575 6,575 7,598 1,02316% Wellness Program - 140 140 150 107% Health Insurance 18,033 16,833 16,833 18,709 1,87611% Dental Insurance 264 265 265 300 3513% Life Insurance 51 51 51 54 36% Workers Compensation 1,582 650 650 650 - 0% 33,409 31,454 31,454 35,210 3,75612% Supplies and Materials Operating Supplies 8,274 2,500 2,500 2,500 - 0% Purchased Services Professional Services (Krass Monroe, Ehlers, Sevenich) 78,876 120,000 120,000 100,000 (20,000)-17% Dues and Subscriptions (NAHRO, AICP) 515 600 600 600 - 0% Communication (Allocation) 794 760 760 600 (160)-21% Transportation (Mileage Reimbursement) 45 150 150 600 450300% Advertising 774 1,000 1,000 1,000 - 0% Printing and Binding (Allocation) 176 750 750 800 507% Insurance - Non Personnel (Allocation) 4,380 3,500 3,500 4,500 1,00029% Conferences/Seminars/Training 350 2,000 2,000 2,000 - 0% Services Contracted 7,102 12,000 12,000 3,000 (9,000)-75% Miscellaneous Other Services & Charges 2,320 2,500 2,500 3,500 1,00040% 95,332 143,260 143,260 116,600 (26,660)-19% Capital Outlay Payments to Other Governments (Solid Waste Fees) 1,549 2,500 2,500 1,500 (1,000)-40% Land, Building, Demo (Columbia Arena) - - 2,700,000 450,000 (2,250,000)-83% Improvements other than Building - - - - - 0% 1,549 2,500 2,702,500 451,500 (2,251,000)-83% Developer Assistance Hyde Development Outside Grant Funds - - 1,882,000 1,500,000 (382,000)-20% Total Expenditures - General Fund 433,484 480,169 5,062,169 2,421,110 (2,641,059)-52% Net Income - General Fund 3,036,018 215,219 15,219 (277,723) Projected Ending Fund Balance As of December 31$ 11,427,867$ 11,643,086$ 11,443,086$ 11,165,363 K:\HRA\HRA Budgets\2015 Budget\HRA 2015 Final BudgetUnaudited Data - For Management Purposes Only Fridley Housing Redevelopment Authority Final 2015 Budget Account Description 2013 Actual 2014 Budget 2014 Revised 2015 Budget $ Variance % Variance 265 - Housing Loan Programs Beginning Fund Balance As of January 1 (Estimated)$ 3,909,535$ 3,736,235$ 3,781,835$ 2,827,435 Revenues Other Miscellaneous Revenue Interest on Investment Earnings$ (2,283)$ 21,400$ 21,400$ 18,000$ (3,400)-16% Interest on Mortgages (Pool 0, 1, 2) 40,214 48,300 48,300 44,000 (4,300)-9% Miscellaneous Revenue (H & G Show) 38,971 23,000 23,000 25,000 2,0009% 76,902 92,700 92,700 87,000 (5,700)-6% Total Revenues - Housing Programs 76,902 92,700 92,700 87,000 (5,700)-6% Expenditures Purchased Services Professional Services (Castle Vision - Home Show )$ 20,935$ 17,500$ 17,500$ 17,500$ -0% Advertising (Clear Channel - Home Show) 3,271 6,000 6,000 6,000 - 0% Printing and Binding (Advantage Sign - Home Show) 243 1,100 1,100 1,100 - 0% Utility Services - 500 500 500 - 0% Services Contracted (CEE, Home Energy Visits, etc.) 18,878 12,000 12,000 22,000 10,00083% Charges/Rentals (NSC/Cenaiko - Home Show) 7,680 10,000 10,000 10,000 - 0% Uncollectible Accounts 7,467 - - - - 0% 58,474 47,100 47,100 57,100 10,00021% Other Financing Uses Transfer to General Fund - - 1,000,000 - (1,000,000)-100% Total Expenditures - Housing Programs 58,474 47,100 1,047,100 57,100 (990,000)-95% Net Income - Housing Programs 18,428 45,600 (954,400) 29,900 Projected Ending Fund Balance As of December 31$ 3,927,963$ 3,781,835$ 2,827,435$ 2,857,335 455 - Lake Pointe (1985-2025) TIF # 6 Beginning Fund Balance As of January 1 (Estimated)$ (445,435) $ (447,886) $ (447,886) $ (304,806) Revenues City Revenues Tax Levy$ 419,487$ 710,000$ 650,000$ (60,000)-8% Tax Levy - Delinquent Years - - - - 0% 419,487 710,000 650,000 (60,000)-8% Other Miscellaneous Revenue Interest on Investment Earnings 709 2,500 2,500 - 0% 709 2,500 2,500 - 0% Total Revenues - Lake Pointe 420,196 712,500 652,500 (60,000)-8% Expenditures Purchased Services Professional Services/Administration Fees$ 65,055$ 71,000$ 65,000$ (6,000)-8% Services Contracted (Non-prof) 390 - 400 400100% 65,445 71,000 65,400 (5,600)-8% Capital Outlay Parking Facilities (Medtronic Pay as you go) 357,202 498,420 456,300 (42,120)-8% 357,202 498,420 456,300 (42,120)-8% Total Expenditures - Lake Pointe 422,647 569,420 521,700 (47,720)-8% Net Income - Lake Pointe (2,451) 143,080 130,800 Projected Ending Fund Balance As of December 31$ (447,886) $ (304,806) $ (304,806) $ (174,006) K:\HRA\HRA Budgets\2015 Budget\HRA 2015 Final BudgetUnaudited Data - For Management Purposes Only Fridley Housing Redevelopment Authority Final 2015 Budget Account Description 2013 Actual 2014 Budget 2014 Revised 2015 Budget $ Variance % Variance 458 - Onan (1989-2015) TIF # 9 Beginning Fund Balance As of January 1 (Estimated)$ 1,593,440$ 784,992 $ 784,992 $ 134,992 Revenues City Revenues Tax Levy$ 281,084$ 350,000$ 350,000$ 290,000$ (60,000)-17% Tax Levy - Delinquent Years - - - - - 0% 281,084 350,000 350,000 290,000 (60,000)-17% Other Miscellaneous Revenue Interest on Investment Earnings 1,698 2,600 2,600 2,600 - 0% Total Revenues - Onan 282,782 352,600 350,000 292,600 (57,400)-16% Expenditures Purchased Services Professional Services$ 29,190$ 35,000$ 35,000$ 29,000 (6,000)-17% Capital Outlay Capital Outlay - Building (Vet Clinic GWNE) 562,040 - - - - 0% Other Financing Uses Transfer to other Funds 500,000 - 1,000,000 - (1,000,000)-100% Total Expenditures - Onan 1,091,230 35,000 1,000,000 29,000 (971,000)-97% Net Income - Onan (808,448) 317,600 (650,000) 263,600 Projected Ending Fund Balance As of December 31$ 784,992 $ 1,102,592$ 134,992 $ 398,592 462 - University/Osborne (1992-2018) TIF # 11 Beginning Fund Balance As of January 1 (Estimated)$ 146,611 $ 191,830 $ 191,830 $ 246,930 Revenues City Revenues Tax Levy$ 50,814$ 60,000$ 50,000$ (10,000)-17% Tax Levy - Delinquent - - - - 0% 50,814 60,000 50,000 (10,000)-17% Other Miscellaneous Revenue Interest on Investment Earnings (339) 1,100 300 (800)-73% (339) 1,100 300 (800)-73% Total Revenues - University/Osborne 50,475 61,100 50,300 (10,800)-18% Expenditures Purchased Services Professional Services/Administrative Fees$ 5,256$ 6,000$ 5,000 (1,000)-17% 5,256 6,000 5,000 (1,000)-17% Capital Outlay Capital Outlay - - - - - 0% - - - - 0% Total Expenditures - University/Osborne 5,256 6,000 5,000 (1,000)-17% Net Income - University/Osborne 45,219 55,100 45,300 Projected Ending Fund Balance As of December 31$ 191,830 $ 246,930 $ 246,930 $ 292,230 K:\HRA\HRA Budgets\2015 Budget\HRA 2015 Final BudgetUnaudited Data - For Management Purposes Only Fridley Housing Redevelopment Authority Final 2015 Budget Account Description 2013 Actual 2014 Budget 2014 Revised 2015 Budget $ Variance % Variance 463 - McGlynn (1992-2019) TIF # 12 Beginning Fund Balance As of January 1 (Estimated)$ 45,694 $ 72,450 $ 72,450 $ 108,800 Revenues City Revenues Tax Levy$ 30,166$ 40,000$ 28,000$ (12,000)-30% 30,166 40,000 28,000 (12,000)-30% Other Miscellaneous Revenue Interest on Investment Earnings (344) 350 350 - 0% (344) 350 350 - 0% Total Revenues - McGlynn 29,822 40,350 28,350 (12,000)-30% Expenditures Purchased Services Professional Services/Administrative Fees$ 3,066$ 4,000$ 2,800$ (1,200)-30% 3,066 4,000 2,800 (1,200)-30% Capital Outlay Capital Outlay - - - - 0% - - - - 0% Total Expenditures - McGlynn 3,066 4,000 2,800 (1,200)-30% Net Income - McGlynn 26,756 36,350 25,550 Projected Ending Fund Balance As of December 31$ 72,450 $ 108,800 $ 108,800 $ 134,350 464 - Satellite (1995-2023) TIF # 13 Beginning Fund Balance As of January 1 (Estimated)$ 37,409 $ 71,521 $ 71,521 $ 107,771 Revenues City Revenues Tax Levy$ 39,162$ 40,000$ 33,000$ (7,000)-18% Tax Levy - Delinquent Years - - - - 0% Residual MV Homestead Credit - - - - 0% 39,162 40,000 33,000 (7,000)-18% Other Miscellaneous Revenue Interest on Investment Earnings (344) 250 250 - 0% (344) 250 250 - 0% Total Revenues - Satellite 38,818 40,250 33,250 (7,000)-17% Expenditures Purchased Services Professional Services/Administrative Fees$ 4,706$ 4,000$ 3,300$ (700)-18% 4,706 4,000 3,300 (700)-18% Capital Outlay Capital Outlay - - - - - 0% - - - - 0% Total Expenditures - Satellite 4,706 4,000 3,300 (700)-18% Net Income - Satellite 34,112 36,250 29,950 Projected Ending Fund Balance As of December 31$ 71,521 $ 107,771 $ 107,771 $ 137,721 K:\HRA\HRA Budgets\2015 Budget\HRA 2015 Final BudgetUnaudited Data - For Management Purposes Only Fridley Housing Redevelopment Authority Final 2015 Budget Account Description 2013 Actual 2014 Budget 2014 Revised 2015 Budget $ Variance % Variance 467 - 57th Ave (1997-2023) TIF # 16 Beginning Fund Balance As of January 1 (Estimated)$ (48,954) $ (28,679) $ (28,679) $ (6,179) Revenues City Revenues Tax Levy$ 22,549$ 25,000$ 22,000$ (3,000)-12% Tax Levy - Delinquent Years - - - - 0% 22,549 25,000 22,000 (3,000)-12% Other Miscellaneous Revenue Interest on Investment Earnings 58 - - - 0% 58 - - - 0% Total Revenues - 57th Ave 22,607 25,000 22,000 (3,000)-12% Expenditures Purchased Services Professional Services/Administrative Fees$ 2,332$ 2,500$ 2,200$ (300)-12% 2,332 2,500 2,200 (300)-12% Capital Outlay Capital Outlay (Linn Pay as you go) - - - - 0% - - - - 0% Total Expenditures - 57th Ave 2,332 2,500 2,200 (300)-12% Net Income - 57th Ave 20,275 22,500 19,800 Projected Ending Fund Balance As of December 31$ (28,679) $ (6,179) $ (6,179) $ 13,621 468 - Gateway East (2001-2028) TIF # 17 Beginning Fund Balance As of January 1 (Estimated)$ (673,559) $ (649,547) $ (649,547) $ (625,247) Revenues City Revenues Tax Levy$ 26,663$ 27,000$ 24,000$ (3,000)-11% Tax Levy - Delinquent Years - - - - 0% Residual MV Homestead Credit - - - - 0% 26,663 27,000 24,000 (3,000)-11% Other Miscellaneous Revenue Interest on Investment Earnings 58 - - - 0% 58 - - - 0% Total Revenues - Gateway East 26,721 27,000 24,000 (3,000)-11% Expenditures Purchased Services Professional Services$ 2,709$ 2,700$ 2,400$ (300)-11% 2,709 2,700 2,400 (300)-11% Total Expenditures - Gateway East 2,709 2,700 2,400 (300)-11% Net Income - Gateway East 24,012 24,300 21,600 Projected Ending Fund Balance As of December 31$ (649,547) $ (625,247) $ (625,247) $ (603,647) K:\HRA\HRA Budgets\2015 Budget\HRA 2015 Final BudgetUnaudited Data - For Management Purposes Only Fridley Housing Redevelopment Authority Final 2015 Budget Account Description 2013 Actual 2014 Budget 2014 Revised 2015 Budget $ Variance % Variance 470 - Gateway West (2005-2032) TIF # 18 Beginning Fund Balance As of January 1 (Estimated)$ (1,228,090) $ (631,206) $ (631,206) $ (624,256) Revenues City Revenues Tax Levy$ 9,220$ 8,500$ 10,000$ 1,50018% Tax Levy - Delinquent Years - - - - 0% Res MV Homestead Credit - - - - 0% 9,220 8,500 10,000 1,50018% Other Miscellaneous Revenue Sale of Misc Property 90,980 - - - 0% Interest on Investment Earnings (228) 300 300 - 0% Miscellaneous Revenue (Insurance Claim) - - - - 0% 90,752 300 300 - 0% Other Finance Sources - Transfer from Other Funds 500,000 - - - 0% Total Revenues - Gateway West 599,972 8,800 10,300 1,50017% Expenditures Purchased Services Professional Services /Administrative Fees$ 919$ 850$ 1,000$ 15018% Services Contracted (Mowing Contract) 2,136 1,000 300 (700)-70% Payments to Other Governments (Property Tax) 33 - - - 0% 3,088 1,850 1,300 (550)-30% Capital Outlay Improvements other than building - - - - 0% - - - - 0% Total Expenditures - Gateway West 3,088 1,850 1,300 (550)-30% Net Income - Gateway West 596,884 6,950 9,000 Projected Ending Fund Balance As of December 31$ (631,206) $ (624,256) $ (624,256) $ (615,256) 472 - Main Street (2009-2034) TIF # 19 Beginning Fund Balance As of January 1 (Estimated)$ (3,395) $ (3,346) $ (3,346) $ (2,996) Revenues City Revenues Tax Levy$ 102,094$ 106,000$ 100,000$ (6,000)-6% Tax Levy - Delinquent Years - - - - 0% 102,094 106,000 100,000 (6,000)-6% Other Miscellaneous Revenue Interest on Investment Earnings 175 350 300 (50) -14% 175 350 300 (50) -14% Total Revenues - TIF #19 102,269 106,350 100,300 (6,050)-6% Expenditures Purchased Services Professional Services$ 10,569$ 10,600$ 10,000$ (600)-6% Capital Outlay (Pay as you go) 91,651 95,400 90,000 (5,400)-6% 102,220 106,000 100,000 (6,000)-6% Total Expenditures - TIF #19 102,220 106,000 100,000 (6,000)-6% Net Income - TIF #19 49 350 300 Projected Ending Fund Balance As of December 31$ (3,346) $ (2,996) $ (2,996) $ (2,696) K:\HRA\HRA Budgets\2015 Budget\HRA 2015 Final BudgetUnaudited Data - For Management Purposes Only Fridley Housing Redevelopment Authority Final 2015 Budget Account Description 2013 Actual 2014 Budget 2014 Revised 2015 Budget $ Variance % Variance 474 - Gateway Northeast (2017-2042) TIF # 21 Beginning Fund Balance As of January 1 (Estimated)$ (1,146,290) $ (4,130,712) $ (4,130,712) $ (3,291,712) Revenues City Revenues Tax Levy$ -$ -$ -$ -$ -0% Tax Levy - Delinquent Years - - - - - 0% - - - - - 0% Other Miscellaneous Revenue Interest on Investment Earnings (9,354) - - - - 0% 246 - - - - 0% (9,108) - - - - 0% Other Financing Sources Transfer in from Other Fund (Onan TIF #9) - - 1,000,000 - (1,000,000)-100% Total Revenues - Gateway NorthEast (9,108) - 1,000,000 - (1,000,000)-100% Expenditures Purchased Services Professional Services/Administrative Fees$ 33,715$ 150,000$ 150,000$ 15,000$ (135,000)-90% Advertising - - - - - 0% Other Services/Charges (Complete Ground Services) 3,007 8,000 8,000 - (8,000)-100% Other Services/Charges (Pymts to Other Govt - Taxes) 419 3,000 3,000 - (3,000)-100% Capital Outlay - - - - - 0% 37,141 161,000 161,000 15,000 (146,000)-91% Other Financing Uses Transfer to other Funds 2,938,173 - - - - 0% Total Expenditures - Gateway Northeast 2,975,314 161,000 161,000 15,000 (146,000)-91% Net Income - Gateway Northeast (2,984,422) (161,000) 839,000 (15,000) Projected Ending Fund Balance As of December 31$ (4,130,712) $ (4,291,712) $ (3,291,712) $ (3,306,712) 475 - BAE -Superfund Site TIF # 20 Beginning Fund Balance As of January 1 (Estimated)$ - $ (32,220) $ (32,220) $ (52,220) Revenues City Revenues Tax Levy$ -$ -$ -$ -100% Tax Levy - Delinquent Years - - - - 0% - - - - 0% Total Revenues - BAE - - - 100% Expenditures Purchased Services Professional Services/Administrative Fees$ 32,220$ 20,000$ 20,000$ -0% Advertising - - - - 0% Other Services/Charges (Complete Ground Services) - - - - 0% Other Services/Charges (Pymts to Other Govt - Taxes) - - - - 0% Capital Outlay - - - - 0% 32,220 20,000 20,000 - 0% Total Expenditures - BAE 32,220 20,000 20,000 - 0% Net Income - BAE (32,220) (20,000) (20,000) Projected Ending Fund Balance As of December 31$ (32,220) $ (52,220) $ (52,220) $ (72,220) K:\HRA\HRA Budgets\2015 Budget\HRA 2015 Final BudgetUnaudited Data - For Management Purposes Only Fridley Housing Redevelopment Authority Final 2015 Budget Account Description 2013 Actual 2014 Budget 2014 Revised 2015 Budget $ Variance % Variance 476 - BAE - Hazardous Subdistrict TIF # 20a Beginning Fund Balance As of January 1 (Estimated)$ - $ (286,132) $ (286,132) $ (650,132) Revenues City Revenues Tax Levy$ -$ -$ 356,000$ 356,000$ 356,000100% Tax Levy - Delinquent Years - - - - - 0% - - 356,000 356,000 356,0000% Total Revenues - BAE - Hazardous Subdistrict - - 356,000 356,000 356,000100% Expenditures Purchased Services Professional Services/Administrative Fees$ 5,199$ 20,000$ 20,000$ 40,000$ 20,000100% Advertising - - - - - 0% Other Services/Charges (Complete Ground Services) - - - - - 0% Other Services/Charges (Pymts to Other Govt - Taxes) - - - - - 0% Developer Assistance - (HRA HSS Grant) 280,933 700,000 700,000 1,300,000 600,00086% 286,132 720,000 720,000 1,340,000 620,00086% Total Expenditures - BAE - Hazardous Subdistrict 286,132 720,000 720,000 1,340,000 620,00086% Net Income - BAE - Hazardous Subdistrict (286,132) (720,000) (364,000) (984,000) Projected Ending Fund Balance As of December 31$ (286,132) $ (1,006,132) $ (650,132) $ (1,634,132) 477 - Northstar Station TIF # 22 Beginning Fund Balance As of January 1 (Estimated)$ - $ (3,841) $ (3,841) $ (13,841) Revenues City Revenues Tax Levy$ -$ -$ -$ -0% Tax Levy - Delinquent Years - - - - 0% - - - - 0% Total Revenues - Northstar Station - - - 0% Expenditures Purchased Services Professional Services/Administrative Fees$ 3,841$ 10,000$ 10,000$ -0% Advertising - - - - 0% Other Services/Charges (Complete Ground Services) - - 3,600 3,6000% Other Services/Charges (Pymts to Other Govt - Taxes) - - - - 0% Capital Outlay - - - - 0% 3,841 10,000 13,600 3,60036% Total Expenditures - Northstar Station 3,841 10,000 13,600 3,60036% Net Income - Northstar Station (3,841) (10,000) (13,600) Projected Ending Fund Balance As of December 31$ (3,841) $ (13,841) $ (13,841) $ (27,441) K:\HRA\HRA Budgets\2015 Budget\HRA 2015 Final BudgetUnaudited Data - For Management Purposes Only Fridley Housing Redevelopment Authority Final 2015 Budget Account Description 2013 Actual 2014 Budget 2014 Revised 2015 Budget $ Variance % Variance 501 - Housing Replacement (1997-2024) Scattered Site Beginning Fund Balance As of January 1 (Estimated)$ 172,257 $ 144,138 $ 144,138 $ (39,662) Revenues City Revenues Tax Levy$ 17,002$ 20,000$ 20,000$ 26,000$ 6,00030% Other Miscellaneous Revenue Interest on Investment Earnings (22) 5,700 5,700 4,000 (1,700)-30% Sale of Misc Property 143,843 120,000 120,000 90,000 (30,000)-25% Miscellaneous Revenues 821 - - - - 0% 144,642 125,700 125,700 94,000 (31,700)-25% Total Revenues - Housing Replacement 161,644 145,700 125,700 120,000 (5,700)-5% Expenditures Purchased Services Professional Services/Administrative Fees$ 19,245$ 2,000$ 2,000$ 2,600$ 60030% Other Charges 1,896 500 500 500 - 0% Services Contracted (Mowing Contract) 2,541 4,000 4,000 4,000 - 0% Other Services & Charges/Pymts to other govts - Taxes 2,004 3,000 3,000 3,000 - 0% Capital Outlay / Building (Home Demolitions) 164,077 300,000 300,000 300,000 - 0% 189,763 309,500 309,500 310,100 6000% Other Financing Uses Transfer to Other Funds (General Fund) - - - - - 0% Total Expenditures - Housing Replacement 189,763 309,500 309,500 310,100 6000% Net Income - Housing Replacement (28,119) (163,800) (183,800) (190,100) Projected Ending Fund Balance As of December 31$ 144,138 $ (19,662) $ (39,662) $ (229,762) K:\HRA\HRA Budgets\2015 Budget\HRA 2015 Final BudgetUnaudited Data - For Management Purposes Only COMMUNITY DEVELOPMENT DEPARTMENT HOUSING AND REDEVELOPMENT AUTHORITY Memorandum DATE: November 25, 2014 TO: Wally Wysopal, City Manager / Executive Director of HRA FROM: Darin Nelson, Finance Director Paul Bolin, Assistant Director of HRA SUBJECT: Resolution Ratifying a Transfer of Funds Between TIF District #9 and TIF District #21, a Motion Approving an Interfund transfer between the Revolving Loan Fund and the General Fund and a Motion Approving the Repayment of Various Payables/Receivables As the year draws to a close and we prepare for our yearend financial reporting, we need address our interfund loans and transfers. Early this fall, James Casserly and Greg Johnson reviewed the . They recommended a number of transfers and repayments that need to take place before year-end. Their recommendations were as follows: Transfer $1.0 million from TIF 9 (Onan) to TIF 21 (GWNE). TIF 9 decertifies 12/31/15 and excess fund balance is able to be transferred to other TIF districts with identified costs. The next step after this transfer is to utilize this $1.0 million in TIF 21 (GWNE) to pay down the interfund loan to the HRA General Fund. This activity is also noted below along with the other interfund receivables/payables. Since 12/31/01, the Revolving Loan Fund has ended the year with a cash balance of over $2.0 million. The 12/31/13 cash balance was $3.0 million. These resources are being used to fund this program and other HRA intiatives. Staff recommends transferring $1.0 million to the HRA General Fund. Lastly, below are a list of payments needed to accurately reflect reductions in outstanding due to and due from balances for various TIF Districts. Due to Other Funds Due from Other Funds Fund 474 GWNE - $1,000,000 (noted above) Fund 100 General Fund - $1,000,000 Fund 501 Housing Replacement - $600,000 Fund 100 General Fund - $600,000 th Fund 467 57 Avenue - $18,000 Fund 100 General Fund - $18,000 Fund 468 Gateway East - $20,000 Fund 100 General Fund - $20,000 Fund 470 Gateway West - $90,000 Fund 100 General Fund - $90,000 Staff Recommendation: Staff recommends that the Authority adopt a Resolution ratifying a transfer of funds between TIF District #9 (Onan) and TIF District #21 (Gateway Northeast). Staff also recommends, after adoption of the above noted Resolution, that the Authority make a motion approving the transfer of $1.0 million from the Housing Loan Program to the HRA General Fund. Staff further recommends a motion approving the transfers from the various TIF Districts listed above to the HRA General Fund. HOUSING AND RE DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2014- A RESOLUTION RATIFYING A TRANSFER OF FUNDS BETWEEN TIF DISTRICT NO. 9 (ONAN) AND TIF DISTRICT NO. 21 (GATEWAY NORTHEAST) BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority) as follows: WHEREAS, TIF District No. 9 is a redevelopment tax increment financing district approved by the HRA and the City in 1989 and subsequently certified by the County; and WHEREAS, the TIF District No. 9 8 WHEREAS, TIF District No. 21 (Gateway Northeast) also a redevelopment tax 74($4,130,712) as of December 31, 2013; NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota as follows: (1) The transfer of approximately $1,000,000 from Fund #458 to Fund #474 is hereby ratified and is effective as of December 31, 2014 Adopted by the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota this 4th day of December, 2014. Lawrence R. Commers, Chair ATTEST: __________________________________ Walter T. Wysopal, Executive Director MMB: 4820-3491-4839, v. 1 ACTION ITEM HRA MEETING OF DECEMBER 4, 2014 DATE: November 26, 2014 TO: Wally Wysopal, City Manager FROM: Paul Bolin, Assistant Executive HRA Director SUBJECT: MN DEED IBDPIP Grant Application INTRODUCTION Hyde Development, has requested the Authority grant through the Minnesota Department of Employment and Economic Development's "Innovative Business Development Public Infrastructure" grant program. Hyde Development is seeking $600,000 from this grant source. DEED's Innovative Business program provides funding for public infrastructure needed to create and/or retain jobs for an "innovative business". DEED defines "innovative business" as one that uses "proprietary technology to add value to a proprietary product, process or service in a high technology field". BAE and the work that they do, meets the definition. Hyde Development has identified $600,000 in public infrastructure improvements necessary to provide proper access to BAE, Phase II of the redevelopment. The costs are shown below. $500,000 in design, construction and materials to complete the signalized interchange on the north end of the Phase I development area, just south of Phase II Consolidation project. $100,000 for the main interchange to the Phase II Consolidation site on East River Road. RECOMMENDATION Staff recommends approval of the attached resolution supportingHyde Development's application for a grant through DEED's Innovative Business Development Public Infrastructure Grant Program. HRA RESOLUTION 2014 - RESOLUTION APPROVING APPLICATION TO ENTER INTO FUNDING AGREEMENT WITH THE DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT (DEED) FOR GRANT ASSISTANCE FOR THE 4800 EAST RIVER ROAD REDEVELOPMENT BE IT RESOLVED that the Housing and Redevelopment Authority in and for the City of Fridley (hereafter Fridley HRA) act as the legal sponsor for project contained in the Innovative Business Development Public Infrastructure Program to be submitted on December 15, 2014 and that Assistant Executive Director is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of the Fridley HRA. BE IT FURTHER RESOLVED that the Fridley HRA has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration. BE IT FURTHER RESOLVED that the sources and amounts of the local match identified in the application are committed to the project identified. BE IT FURTHER RESOLVED that the Fridley HRA has not violated any Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the state, the Fridley HRA may enter into an agreement with the State of Minnesota for the above referenced project(s), and that the Fridley HRA certifies that it will comply with all applicable laws and regulation as stated in all contract agreements. NOW, THEREFORE BE IT FINALLY RESOLVED that the Chairperson and the Executive Director,are hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 4th DAY OF DECEMBER, 2014. ________________________________________________________ LAWRENCE R. COMMERS, CHAIRPERSON WITNESSED: _____________________________________ WALTER T. WYSOPAL, EXECUTIVE DIRECTOR I CERTIFY THAT the above resolution was adopted by the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota on December 4, 2014. ____________________________ _______ DEB A. SKOGEN, CITY CLERK ACTION ITEM HRA MEETING OF DECEMBER 4, 2014 DATE: November 26, 2014 TO: Wally Wysopal, City Manager FROM: Paul Bolin, Assistant Executive HRA Director SUBJECT: Columbia Arena Redevelopment Planning INTRODUCTION On October 30th, the Authority closed on the 14 acre (11 developable acres) Columbia Arena site. The City's Engineering Department has been putting together bid documents for the demolition of the buildings. Bids will be opened on December 30th and brought to the Authority on January 8th for approval, kick starting the demolition of the site. The redevelopment of this large and visible site will leave an impression for many years to come. The chance to acquire a site this large, in a built out city, is a rare opportunity to accommodate a number of the community's wants and needs. In order to identify the wants and needs, and develop the site to prosper, it is important for the whole community to participate in planning the future of the site. The redevelopment of the site will only be successful if there is a common vision for its future. Staff is recommending the inclusive planning exercise used to develop the vision for the Gateway Northeast property, now under development. In 2007 the Authority partnered with Gretchen Nicholls, Barbara Raye and the Corridor Housing Initiative to plan for Gateway Northeast. Through a series of workshops that invited residents in to work with architects, developers, and financiers, a common vision was formed for the redevelopment of the site. The workshops created buy in from the community and set the table for development to happen. The Cielo project mirrors, almost exactly, the concepts developed for the site. We expect the same will happen with the Columbia Arena site. There are many unique factors calling for careful planning of the site, making it a good candidate for the Corridor Development Initiative planning process. Land area - 14 acres total / 11 acres developable. Visibility - The 2013 vehicle counts show that over 34,000 vehicles / day pass by this site. Location - The site is adjacent to City owned park land, the Fire Training Center and the Public Works Facility. This provides some flexibility in reworking the site, by potentially providing additional land area. Buffer - The redevelopment of this site can provide a buffer/transition between the industrial property to the North and the residential neighborhood to the South. If the Authority concurs with the recommendation to move forward with the Corridor Development Initiative's planning process, work will begin in early January. The first community workshop will take place in February and we will have a final report in April, allowing the Authority to take advantage of the upcoming building season. RECOMMENDATION Staff recommends approval of the attached proposal to work with the Corridor Development Initiative in planning the future of the Columbia Arena site. James R. Casserly jcasserly@mmblawfirm.com Direct 952-885-1296 MEMORANDUM To: City of Fridley Attn: Wally Wysopal, City Manager Fridley HRA Attn: Paul Bolin, Assistant Executive Director From: James R. Casserly, Esq. Date: November 13, 2014 Re: Repayment of HRA advances in excess of $1.5M (Columbia Arena redevelopment project) Our File No. 9571-67 The Columbia Arena has now been purchased by the HRA, and the HRA is now in the process of obtaining bids for the demolition of the buildings and removal of asphalt. In addition the HRA is working on obtaining a No Association Letter from the MPCA and will address the environmental issues. Both the HRA and the City have agreed to put $1.5M towards the acquisition and redevelopment costs of the Columbia Arena redevelopment project. However the costs will soon exceed the $3.0M currently available for the project. The HRA recognizes it will have the responsibility of paying for additional redevelopment costs. Since the HRA is making interfund loans from its general fund to finance the redevelopment costs, it would like to have those additional costs in excess of its initial advance of $1.5M repaid first. The two Resolutions attached accomplish this goal. The HRA Resolution amends an earlier Resolution which has the tax increment repaying the City and the Authority based on the outstanding principal of their respective loans on each payment date. The Amendment to the August HRA Resolution has the tax increment first paying the HRA for those amounts that it advances in excess of $1.5M. The City Resolution simply adopts the change put forth by the HRA Resolution which is attached as an Exhibit to the City Resolution. Please contact us if there are any questions or issues regarding these Resolutions. JRC/rl MMB: 4825-9468-5472, v. 1 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2014-19 A RESOLUTION AMENDING HRA RESOLUTION NO. 2014-09 WHICH APPROVED INTERFUND LOANS ASSOCIATED WITH THE PROPOSED COLUMBIA ARENA REDEVELOPMENT PROJECT AND THE REPAYMENT OF A CITY LOAN Section 1. Recitals. 1.01 The Authority at its regularly scheduled meeting on August 7, 2014 approved HRA Resolution No. 2014-09 HRA Resolution No. 2014-09 1.02 $3,000,000.00 of costs for the redevelopment of the Columbia Arena. 1.03 The Authority will make TIF Loans (as defined in HRA Resolution No. 2014-09) in excess of $1,500,000.00. 1.04 The Authority, with concurrence by the City, intends to first recover its TIF Loans in excess of $1,500,000.00 (also referred to as Additional HRA Principal in Section 2 below). Section 2. Amendment of HRA Resolution No. 2014-09 2.01 The provisions of Section 2.03 of HRA Resolution No. 2014-09 are hereby amended to read as follows (double underlined language is new and strikethroughs are deletions): 2.02 Payments on each TIF Loan and the City Loan are payable solely from Available Tax Increment, which shall mean the tax increment available from the TIF District and available for that purpose, at the Authority's discretion, from any other tax increment financing district, after withholding (a) allowable Authority administrative fees, and (b) prior obligations, which shall include all general obligation or revenue bonds or notes for which the tax increment revenues of the TIF District or other tax increment financing districts are pledged. The Available Tax Increment HRA Resolution No. 2014-19 Page 2 shall plus accrued interest on the Additional HRA Principal. After payment in full of the Additional HRA Principal and its accrued interest, then the Available Tax Increment shall be allocated between the City Loan and the unpaid portion of the TIF Loans in proportion to their share of the total each of outstanding principal balance on each Payment Date. Section 3. Approval. The Board of the Authority hereby approves the repayment of the City Loan and the TIF Loans in accordance with this Resolution. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN TH AND FOR THE CITY OF FRIDLEY THIS 4 DAY OF DECEMBER 2014. __________________________________ Lawrence R. Commers, Chairman ATTEST: __________________________________________ Walter T. Wysopal, Executive Director 2 Fridley HRA Housing Program Summary Cover Page December 4, 2014 HRA Meeting ReportDescription Loan Application Summary Loan application activity (e.g. mailed out, in process, closed loans) for past month 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. -- At the time of packet production, CEE sent an email stating that they were having trouble with their reporting system. I will provide the information to you next week. Have a great Thanksgiving! Paul K:\HRA\Agenda Packets\2014 Agenda Packets\December 4, 2014\Housing Program CoverDecember14.docx