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HRA 01/08/2015 January 8, 2015 HRA Meeting Regular Meeting Agenda 7:00 p.m. Call to order Roll call. Action Items 1.Approval of Expenditures 2.Approval of December 4, 2014 Meeting Minutes 3.Approval of Resolution Designating Official Depositories 4.Approval of Resolution Designating Official Newspaper 5.Approval of Amendment to CEE Contract 6.Public Hearing - Sale of Lot at 5875 2nd Street Informational Items 1.Housing Loan Program Update Adjournment K:\HRA\Agenda Packets\2015 Agenda Packets\2015 01 08\January 2015 Agenda Outline.docxK:\HRA\Agenda Packets\2015 Agenda Packets\2015 01 08\January 2015 Agenda Outline.docx PREPARED 12/18/2014, 16:15:23 A/P CHECKS BY PERIOD AND YEAR PAGE 1 PROGRAM: GM350L FRIDLEY HOUSING & REDEVELOPMENT FROM 12/15/2014 TO 12/19/2014 BANK CODE 00 ------------------------------------------------------------------------------------------------------------------------------------ CHECK CHECK CHECK DATE NUMBER VENDOR NAME VENDOR # AMOUNT ------------------------------------------------------------------------------------------------------------------------------------ 12/18/2014 29699 BIIST OUT SOLUTIONS 238 240.00 12/18/2014 29700 CARLSON MCCAIN, INC 334 890.00 12/18/2014 29701 EDAM 506 245.00 12/18/2014 29702 MONROE MOXNESS BERG PA 1113 5,281.15 12/18/2014 29703 MINNESOTA POLLUTION CONTROL AG 1320 250.00 12/18/2014 29704 QUICKSILVER EXPRESS COURIER 1703 20-70 , DATE RANGE TOTAL * 6, 926.85 * 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 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 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 Employment is grant source. Mr. Bolin infrastructure and defines 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 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 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 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 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 . 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 Mr. Bolin stated that the first pay any TIF 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 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 AGENDA ITEM HRA MEETING OF JANUARY 8, 2015 To: Wally Wysopal, Executive Director Paul Bolin, Assistant Executive Director From: Darin Nelson, Finance Director/Treasurer Date: December 28, 2014 Re: Resolution Designating Official Depositories for the Year 2015 Attached is a resolution appointing Wells Fargo Bank Minnesota N.A. as the Housing & The service the HRA receives from Wells Fargo has been first-rate. Wells Fargo is responsive to not only our requests for information, but also other banking issues that may arise. In today's world of increasing demands for electronic banking, Wells Fargo Bank provides a one- stop-shop for the Authori efficient, as our banking needs are quite complex. collateralized. This assures deposits are safe and not subject to loss if the bank were to fail. This daily monitoring is critical, since the Authority can experience large swings in cash balances at different points throughout the year. Staff recommends a motion adopting a resolution designating official depositories for the Housing & Redevelopment Authority for 2015. RESOLUTION NO. 2015 - ___ RESOLUTION DESIGNATING AN OFFICIAL DEPOSITORY FOR THE HOUSING & REDEVELOPMENT AUTHORITY I, Darin R. Nelson, do hereby certify that I am the Finance Director-Treasurer of the Housing & Redevelopment Authority in and for the City of Fridley, a corporation organized under the laws of the State of Minnesota. I further th certify that at a meeting of said corporation duly and properly called and held on the 8 day of January 2015 the following resolution was passed; that a quorum was present at said meeting; and that said resolution is set forth in the minutes of the meeting and has not been rescinded or modified. IT IS HEREBY RESOLVED, that Wells Fargo Bank Minnesota N.A. is hereby designated as a depository for the funds of this corporation. IT IS FURTHER RESOLVED, that checks, drafts or other withdrawal orders issued against the funds of this corporation on deposit with said bank shall be signed by two of the following individuals: Walter T. Wysopal, Executive Director Darin R. Nelson, Finance Director-Treasurer Shelly M. Peterson, Assistant Finance Director and that said bank is hereby fully authorized to pay and charge to the account of this corporation any checks, drafts, or other withdrawal orders. BE IT FURTHER RESOLVED, that Wells Fargo Banks as a designated depository of the corporation is hereby requested, authorized and directed to honor checks, drafts or other orders for the payment of money drawn in this corporation's name, including those drawn to the individual order of any person or persons whose name or names appear thereon as signer or signers thereof, when bearing or purporting to bear the facsimile signatures by two of the following individuals: Walter T. Wysopal, Executive Director Darin R. Nelson, Finance Director-Treasurer Shelly M. Peterson, Assistant Finance Director and Wells Fargo Banks shall be entitled to honor and to charge this corporation for all such checks, drafts or other orders, regardless of by whom or by what means the facsimile signature or signatures thereon may have been affixed thereto, if such facsimile signature or signatures resemble the facsimile specimens duly certified to or filed with Wells Fargo Banks by the City Clerk or other officer of this corporation. BE IT FURTHER RESOLVED, that any and all resolutions heretofore adopted by the Housing & Redevelopment Authority of the corporation and certified to as governing the operation of this corporation's account(s) with it, be and are hereby continued in full force and effect, except as the same may be supplemented or modified by the foregoing part of this resolution. BE IT FURTHER RESOLVED, that all transactions, if any relating to deposits, withdrawals, re-discounts and borrowings by or on behalf of the corporation with said bank prior to the adoption of this resolution be, and the same hereby are, in all things ratified, approved and confirmed. BE IT FURTHER RESOLVED, that any bank or savings and loan may be used as depositories for investment purposes so long as the investments comply with authorized investments as set forth in Minnesota Statutes. BE IT FURTHE RESOLVED, that the signatures of two of the following named City/HRA employees are required for withdrawal of Housing & Redevelopment Authority investment funds from savings and loan associations: Walter T. Wysopal, Executive Director ____________________________ Darin R. Nelson, Finance Director-Treasurer____________________________ Shelly M. Peterson, Assistant Finance Director ____________________________ BE IT FURTHER RESOLVED, that any brokerage firm may be used as a vendor for investment purposes so long as the investments comply with the authorized investments as set forth in Minnesota Statutes. I further certify that the Board of this corporation has, and at the time of adoption of said resolution, had full power and lawful authority to adopt the foregoing resolutions and to confer the powers therein granted to the persons named who have full power and lawful authority to exercise the same. PASSED AND ADOPTED BY THE FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY IN AND FOR th THE CITY OF FRIDLEY THIS 8 DAY OF JANUARY 2015. _____________________________ LAWRENCE R. COMMERS, CHAIRPERSON ATTEST: ___________________________________________ WALLY T. WYSOPAL EXECUTIVE DIRECTOR AGENDA ITEM HRA MEETING OF JANUARY 8, 2015 To: Wally Wysopal, Executive Director Paul Bolin, Assistant Executive Director From: Darin Nelson, Finance Director/Treasurer Date: December 23, 2013 Re: Resolution Designating Official Newspaper for the Year 2015 The Fridley City Charter Section 12.01 requires the designation of an official newspaper for the Fridley Housing and Redevelopment Authority. Attached is a resolution designating the Fridley Sun Focus News as the official legal newspaper of the Fridley Housing and Redevelopment Authority for the year 2015. The Minneapolis Star Tribune is designated as the Fridley Housing and Redevelopment Authority's second official newspaper for the year 2015. RESOLUTION NO. HRA 2015 - RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR THE YEAR 2015 WHEREAS, the Charter of the City of Fridley requires in Section 12.01 thereof that the Fridley Housing and Redevelopment Authority, annually designate an official newspaper for the Housing and Redevelopment Authority. NOW, THEREFORE, BE IT RESOLVED that the Focus News is designated the official legal newspaper for the City of Fridley for the year 2015 for all publications required to be published therein. BE IT FURTHER RESOLVED that the Minneapolis Star and Tribune be designated as the cial newspaper for the year 2015. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT TH AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS 8 DAY OF JANUARY 2015. ________________________________________ LAWRENCE R. COMMERS, CHAIRPERSON ATTEST: ________________________________________ WALLY WYSOPAL, EXECUTIVE DIRECTOR AGENDA ITEM HOUSING & REDEVELOPMENT AUTHORITY JANUARY 8, 2015 TO: Wally Wysopal, Executive Director of HRA FROM: Paul Bolin, Assistant HRA Director SUBJECT: Contract Extension CEE Loan Programs Introduction The Center for Energy and Environment (CEE) is the non-profit agency the Authority has partnered with, since 1996, to oversee the housing programs. Partnering with CEE, allows the HRA to outsource most of the administrative functions, including program marketing, loan processing, underwriting, loan closing, and payment to the contractors. CEE provides technical assistance to Fridley homeowners on such topics as remodeling, energy conservation, indoor air quality and related subjects. The partnership with CEE allows the Authority to leverage outside dollars (e.g. Minnesota Housing Finance Agency, Met Council, Federal funds, etc.) and The current agreement with CEE expired on December 31, 2014. Staff believes it is important to continue working with CEE and is recommending that the HRA renew its commitment for another 2 years. For the first time in 10 years, CEE is seeking some changes in the rate of compensation for certain services. These fee changes are necessary for CEE to cover their actual costs in providing these services. Proposed Changes to Existing Agreement Attached is a copy of the proposed extension that would run through December 31, 2016. The following section summarizes the changes to the existing contract. Marketing CEE does provide a number of marketing efforts each year, including postcards, mailers and participation in the Home and Garden Show. Most of these marketing pieces (postcards, mailers) are used from year to year and we only pay for the printing and mailing. The contract has always had a fee of $55/ hour for development of customized marketing materials. This customized work will now cost $65 / hour to cover the actual costs of the service. Remodeling Advisor CEE had been paid a flat fee of $130.00 per visit for the remodeling advisor service. The visits typically take Due to increases in CEE's cost to deliver this service (insurance, salaries, fuel, etc.), the rate of compensation for this service will now be $225. The Authority has typically provided 10 - 20 of these visits per year. Recommendation Staff recommends that the Authority approve the amendment to the Loan Origination Agreement with the Center for Energy and Environment through December 31, 2016. AGENDA ITEM HOUSING & REDEVELOPMENT AUTHORITY JANUARY 8, 2015 TO: Wally Wysopal, Executive Director of HRA FROM: Paul Bolin, Assistant HRA Director SUBJECT: Public Hearing - Sale of 5875 2nd Street Kaleab Girma, of Real Estate Transformers, has submitted a lot reservation agreement to build a new home on the lot located at 5875 2nd Street. Due to timing, the builder has not yet started designing the home. The Authority's lot reservation agreement provides the builder up to 60 days to find a buyer and submit home plans meeting the program's criteria. Based on Mr. Girma's recent history in the City, Staff is confident that Mr. Girma will design the home and find a buyer over the next 60 days. STAFF RECOMMENDATION: Staff recommends approval of the attached resolution, authorizing the sale of the lot to Real Estate Transformers for $30,000 upon submittal of home plans meeting criteria of the Authority's Housing Replacement Program. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2015-03 A RESOLUTION AUTHORIZING THE SALE OF RESIDENTIAL PROPERTY BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority") as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority sell certain residential property (the "Property") described below: Legal Description: Street Address LOTS 28 & 29, BLOCK 23, HYDE PARK 5875 2nd Street NE Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted a development program known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program") pursuant to Minnesota Statutes, Section 469.001 et seq. 2.02. The Authority hereby finds that it has approved and adopted a Housing Replacement District Plan (the "Plan") and created Housing Replacement District No. 1, pursuant to and in accordance with 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 2.03. The Authority hereby finds that it has performed all actions required by Minnesota Statutes for the sale of the Property. 2.04. The Authority hereby finds that the sale of the Property promotes the objectives as outlined in its Redevelopment Program and the Plan. HRA Resolution No. 2015-03 Page 2 Section 3. Approval of the Sale. 3.01 The sale of the Property is hereby approved. Section 4. Authorization for Execution and Delivery. 4.01. The Chairman, the Executive Director and Assistant Executive Director are hereby authorized to execute and deliver any documents necessary to effect the sale of the Property in accordance with the Authority's Housing Replacement Program. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 8th DAY OF JANUARY, 2015. _________________________________________ LAWRENCE R. COMMERS - CHAIRMAN ATTEST: ____________________________________________ WALTER T. WYSOPAL, EXECUTIVE DIRECTOR