HRAM 12/08/2014
CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION
December 8, 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
Julie Jones, Planning Manager
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
Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
2.Approval of November 6, 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 2015 Budget
Darin Nelson,
Finance Director, reviewed the preliminary budget at the November meeting
and there were three changes made to the draft presentation.
1.Updated to include the entire $1.5M Columbia Arena loan from City.
City of Fridley Housing and Redevelopment Meeting of December 4, 2014 2
2.$600,000 reduction of transfers into the general fund from Housing Replacement
Program
3.Fund 476, BAE HSS revised to include increment received in 2014.
Staff recommends approval of the 2015 budget, including revised 2014 budget.
Commissioner Gabel
asked if there would still be a 10% administration fee even though it
goes to pay back the grants.
Mr. Nelson
replied that is correct.
Chairperson Commers
asked if those funds were used to pay for administrative and other
costs.
Mr. Nelson
answered that is correct.
Chairperson Commers
asked how the fund from the Northstar Station was reflected as the
Authority has invested $3.5M into that project.
Jim Casserly,
Development Consultant, replied that the Northstar Station has special
legislation to use the funds from other districts and those are not loans, but actual allocations
from those expired districts to help with the payment for the station.
Chairperson Commers
asked if transfers would be reflected out of those districts.
Mr. Casserly
replied that transfers would be shown during those years, which were three to
four years ago.
MOTION
by Commissioner Holm to approve the 2015 Budget. Seconded by Commissioner
Gabel.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
4.Authorization of Funds Transfer
Darin Nelson,
Finance Director, stated that the Authority regularly reviews “cash balances”
for planning purposes. The Onan TIF District #9 has excess funds that can be transferred to
other districts having a shortfall. A resolution will transfer $1.0M into GWNE TIF District
(TD) #21. Funds will pay back the loan from the general fund. Staff recommends approval
of the resolution authorizing transfer of funds from Onan TD to Gateway NE TD.
Mr. Nelson
noted that since 2001, HRA Revolving Loan Fund has carried a cash balance of
over $2.0M. The current cash balance in excess of $3.0M. Funds can be used to fund loan
programs and other HRA initiatives. Staff recommends transferring $1.0M to the HRA
General Fund.
City of Fridley Housing and Redevelopment Meeting of December 4, 2014 3
Mr. Nelson
reviewed the following cash balances in TIF Districts to be moved over to the
general fund.
Due to Other Funds Due from Other Funds
Fund 474 GWNE - $1,000,000 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 recommends a motion approving transfers from TIF Districts to HRA General Fund.
MOTION
by Commissioner Gabel approving a transfer of $1.0M between TIF District #9
(Onan) and TIF District #21 (Gateway Northeast). Seconded by Commissioner Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
Commissioner Gabel
noted that the resolution says to transfer approximately $1.0M. She
asked how much was being transferred.
Jim Casserly
, Development Consultant, said to take out “approximately” from the
resolution.
MOTION
by Commissioner Eggertapproving a transfer of $1.0M from the Housing Loan
Program to the HRA General Fund. Seconded by Commissioner Backlund.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
MOTION
by Commissioner Gabel to approve the transfers from the various TIF Districts
listed above to the HRA General Fund. Seconded by Commissioner Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
5.Approval of Resolution Supporting DEED Grant Application - Infrastructure
Paul Bolin,
HRA Assistant Executive Director, stated that Hyde Development has requested
the Authority’s assistance to obtain a 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.
Mr. Bolin
said that DEED’s Innovative Business program provides funding for public
infrastructure and defines “innovative business” as one that uses “proprietary technology to
City of Fridley Housing and Redevelopment Meeting of December 4, 2014 4
add value to a proprietary product, process or service in a high technology field”. BAE and
the work that they do, meet the definition.
Mr. Bolin
said that Hyde Development has identified $600,000 in public infrastructure
improvements necessary to provide proper access to BAE, Phase IIof 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.
Mr. Bolin
stated that staff recommends approval of the attached resolution supporting Hyde
Development’s application for a grant through DEED’s Innovative Business Development
Public Infrastructure Grant Program.
Commissioner Holm
asked if an additional traffic signal would be added to this site.
Mr. Bolin
replied that they will be upgrading the intersection.
Commissioner Backlund
noted this is a county road and asked if improvements needed to
be coordinated with the county.
Mr. Bolin
answered yes; Mr. Hyde has been working with the county on this.
MOTION
by Commissioner Eggert to approve the application to enter into a funding
agreement with DEED and act as project sponsor for Innovative Business Development
Public Infrastructure grant funds necessary to redevelop the property located at 4800 East
River Road. Seconded by Commissioner Gabel.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
6.Approval of Proposal for Public Participation Process – Columbia Arena
Paul Bolin
, HRA Assistant Executive Director, stated that the Columbia Arena site is a once
in a lifetime opportunity for the City. The land area is 14 acres and 34,000 cars pass by this
site each day. The location is surrounded by City owned property on two sides which
provides potential to rework the entire area.
Mr. Bolin
asked what needs does the City have that can be met on this site? Staff is
suggesting Corridor Development Initiative (CDI) Community Workshops could be held in
February or March. Staff recommends working with CDI in an inclusive public planning
process for the redevelopment of the Columbia Arena site.
City of Fridley Housing and Redevelopment Meeting of December 4, 2014 5
Mr. Bolin
said that CDI workshops have been successful in Fridley. The goal is to develop a
community vision for the future of the site and “set the table” for development.
Commissioner Backlund
noted that it appears the major player is Gretchen Nichols who
will be working a week a month over the 4 months; he asked if that was enough time.
Mr. Bolin
replied that is the amount of time she worked on Gateway Northeast and she has
been working the same process for a number of years. Ms. Nichols put this proposal together
and she feels confident the process can be completed in the allotted time.
Commissioner Gabel
participated in the last project and it was a fantastic way to work with
the building blocks and have them tell you what will work and what won’t based on finances.
She asked how the advisory group would be identified.
Mr. Bolin
replied that in past projects the advisory group was made up of a mostly city staff.
Commissioner Eggert
asked what type of entity CDI was.
Mr. Bolin
replied that CDI has evolved over the years. It was originally known as the
Corridor Housing Initiative Special Program headed up by the U of M and since that time
they received a grant to set up this program and it has worked in a number of communities.
When the grant money was depleted, Gretchen worked for a nonprofit agency that did
housing and development work and changed the name to Corridor Development Initiative.
MOTION
by Commissioner Backlund to approve the proposal for Public Participation
Process – Columbia Arena. Seconded by Commissioner Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
7.Approval of Resolution Amending HRA Resolution 2014-09, Columbia Arena
Interfund Loans
Paul Bolin
, HRA Assistant Executive Director, stated that in August the Authority created
the “Columbia Arena” TIF District Fund. There is an interfund loan from the HRA and a
loan from the City. The city share is from a closed bond fund ($1.5M) and the HRA share is
from the general fund. The loans will be repaid through future land sales and TIF. The
Authority will have redevelopment expenses above the initial $3.0M and would like to
recover those costs prior to reimbursing the City’s loan.
Mr. Bolin
stated that the amended resolution states that “Increment shall first pay any TIF
Loan principal in excess of $1,500,000.00 (the “Additional HRA Principal”), plus accrued
interest on the Additional HRA Principal.” Staff recommends approval of the resolution
amending Resolution 2014-09 addressing loans associated with the proposed Columbia
Arena redevelopment project and the repayment of a City loan.
City of Fridley Housing and Redevelopment Meeting of December 4, 2014 6
Jim Casserly
, Development Consultant, said that the city needs to adopt the same resolution
to make it clear they also approve this concept. Repayment of these loans depends on the
increment that will be collected and the district hasn’t been created yet. It takes three years
to create the tax increment. The Authority has the ability, just as they did with the Onan
funds, to transfer excess funds from other districts to repay the interfund loan made for this
project. This gives flexibility and addresses some concerns people have as to what the
Authority should recover.
Chairperson Commers
asked in the first sentence if the loans repayable are solely from the
TIF district.
Mr. Casserly
replied yes, that is the TIF district that will be created.
Chairperson Commers
asked what commitment the Authority has to use funds from other
TIF Districts to repay the loan. He asked if the Authority is committed to use excess funds to
repay this loan or if it was an option. He was concerned that if money was needed for other
projects the funds would be tied up to repay this loan.
Mr. Casserly
replied that language could be added to make it read more clearly in section
2.02.
MOTION
by Commissioner Backlund to approve the amended HRA Resolution 2014-09,
Columbia Arena Interfund Loans. Seconded by Commissioner Gabel.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
Informational Items
1.Housing Loan Program Update
Paul Bolin,
HRA Assistant Executive Director, reported that in November there were no
loans closed making 20 year to date; there were also no remodeling advisor visits in
November so there is a total of 6 year to date. There were 13 home energy quad visits
making a total of 110 year to date. Next month staff will present an extension for the
contract for loan programs and the other work staff does with them.
Julie Jones,
Planning Manager, presented an update on the TOD Planning Efforts. The
master plan will go to the City Council on Monday.
Adjournment
MOTION
by Commissioner Backlund to adjourn. Seconded by Commissioner Eggert.
City of Fridley Housing and Redevelopment Meeting of December 4, 2014 7
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING
ADJOURNED AT 8:20 P.M.
Respectfully Submitted,
Krista Peterson, Recording Secretary