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HRA 03/05/2015 March 5, 2015 HRA Meeting Regular Meeting Agenda 7:00 p.m. Call to order Roll call. Action Items 1.Approval of Expenditures 2.Approval of January 8, 2015 Meeting Minutes 3.Approval of 2015 Mowing Contract nd 4.Approval of Resolution Authorizing Transfer of Property 6000 2 Street Informational Items 1.Housing Loan Program Update Adjournment K:\HRA\Agenda Packets\2015 Agenda Packets\2015 03 05\March 2015 Agenda Outline.docxK:\HRA\Agenda Packets\2015 Agenda Packets\2015 03 05\March 2015 Agenda Outline.docx PREPARED 02/10/2015, 15:02 :44 A/P CHECKS BY PERIOD AND YEAR PAGE 1 PROGRAM: GM350L FRIDLEY AOUSING & REDEVELOPMENT FROM 02/O1/2015 TO 02/10/2015 BANK CODE 00 ------------------------------------------------------------------------------------------------------------------------------------ CHECK CHECK CHECK DATE NUMBER VENDOR NAME VENDOR # AMOUNT ------------------------------------------------------------------------------------------------------------------------------------ 02/10/2015 29716 AMERICAN PLANNING ASSOCIATION 102 465.00 02/10/2015 29717 BUST OUT SOLUTIONS 238 37.50 02/10/2015 29718 CASTLEVISIONS 306 1,236.65 02/10/2015 29719 XCELIGENT, INC 2401 1, 980 .00 DATE RANGE TOTAL * 3,719.15 * � PREPARED o2/27/2015, 11:08:25 A/P CHECKS BY PERIOD AND YEAR PAGE 1 PROGRAM: GM350L FRIDLEY HOUSING & REDEVELOPMENT FROM 02/23/2015 TO 02(27/2015 SANK CODE 00 ------------------------------------------------------------------------------------------------------------------------------------ CHECK CHECK CHECK DATE NUMBER VENDOR NAME VENDOR # AMOUNT -----------------------------------------------------------------------------------------�------------------------------------------ 02/27J2015 29720 BRAUN INTERTEC CORPORATION 220 670.00 02/27/2015 29721 E.C.M. PUBLISHERS, INC. 501 963 .00 02/27/2015 29722 FRIDLEY, CZTY OF 623 61,678.71 02/2T/2015 29723 MONROE MOXNESS BERG PA 1113 1,035.10 02/27/2015 29724 XCELIGENT, INC 2401 165.00 DATE RANGE TOTAL * 64,711.81 * . 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,HR.A Assistant Executive Director Darin Nelson, Finance Director Julie 3ones, Planning Manager Wally Wysopal, City Manager Jim Casserly, Development Consultant ACTION ITEMS: 1. Approval of Expenditures M4TION 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 how the administrative fee is calculated. Mr. Nelson replied that if the TIF comes in as revenue then expenditure is calculated for the appropriate percentage for that amount. The general fund shows revenue coming in for TIF related revenues. 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.SM 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 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.OM 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. . . City of Fridley Housing and Redevelopment Meeting of December 4,2014 3 Mr. Nelson noted that since 2001, HRA Revolving Loan Fund has carried a cash balance of over $2.OM. The cunent cash balance in excess of$3.OM. Funds can be used to fund loan programs and other HRA initiatives. Staff recommends transferring $1.OM to the HRA General Fund. 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,OOQ Fund 100 General Fund - $600,000 Fund 467 57th Avenue - $18,000 Fund 100 General Fund- $18,OQ0 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.OM 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.OM. She asked how much was being transferred. Jim Casserly, Development Consultant, said to take out "approximately" from the resolution. MOTION by Commissioner Eggert approving a transfer of$1.OM from the Housing Loan Program to the HRA General Fund. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED T�IE 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 the Hyde Development has requested the Authority's assistance to obtain a grant through the Minnesota Department of � City of Fridley Housing and Redevelopment Meeting of December 4,2014 4 � 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 "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, 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 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. 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. , .. City of Fridley Housing and Redevelopment Meeting of December 4,2014 5 Mr. Bolin asked what needs does the City have that can be met on this site. Staff is suggesting a Corridor Development Initiative (CDI). Community Workshops would be held in February or March and the workshop would match the needs and wants with market realities. Sta.ff recommends working with CDI in an inclusive public planning process for the redevelopment of the Coluxnbia Arena site. 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; This company now involves more than just housing and is a program or process offered by LISC (Local Initiative Support Corporation). Chairperson Commers asked if this was a public or private corporation. � Mr. Bolin replied that it is a public corporation. 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 , City of Fridley Housing and Redevelopment Meeting of December 4,2014 6 ' 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.SM) 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.OM 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 pav an�TIF Loan princival 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. 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. We have three years to create the TIF. 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. 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 the strikethroughs are deletions): 2.02. Payments on each TIF Loan and the City Loan are pay_able solely from Available Tax Increment, which shall mean the tax increment available from the TIF District and available for that purpose, at the Authoritv'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 shall first nav anv TIF Loan nrincinal in excess of�1.500.000.00 (the"Additional HRA Princinal"l, nlus accured intere t on the Additional HR.A Princinal After navment in full of the Additional HRA Princinal and its accrued interest. then the available tax Increment shall be allocated between the City � . City of Fridley Housing and Redevelopment Meeting of December 4,2014 7 Loan and the unnaid nortion of the TIF Loans in proportion to*'�°�r��^-° ��'*��*�*�� each of the said Loans' resnective outstanding principal balance on each Payment Date. MOTION by Commissioner Backlund to approve the amended HR.A Resolution 2014-09, Columbia Arena Interfund Loans as stated in the above paragraph. 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 squad 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. Adiournment MOTION by Commissioner Backlund to adjourn. Seconded by Commissioner Eggert. 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 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION January 8, 2015 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:03 p.m. ROLL CALL: MEMBERS PRESENT: William Holm Larry Commers Pat Gabel Stephen Eggert MEMBERS ABSENT: Gordon Backlund OTHERS PRESENT: Paul Bolin,HRA Assistant Executive Director Wally Wysopal, City Manager 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 COMMElYS DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of December 4, 2014 Meeting Minutes Chairperson Commers noted that the amended resolution 2014-09 is not reflected on page six in the minutes. He requested that the minutes be tabled, corrected and resubmitted at the February meeting. MOTION by Commissioner Gabel to table the minutes until February 5, 2015. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 3. Approval of Resolution Designating Official Depositories Paul Bolin, HRA Assistant Executive Director, stated that the service HRA receives from Wells Fargo has been first rate. Wells Fargo is responsive to not only requested information, City of Fridley Housing and Redevelopment Meeting of January 8, 2015 2 ' but also other banking issues that may arise. Wells Fargo provides a one-stop-shop for the Authority's required banking needs. Staff recommends a motion adopting a resolution designating official depositories for the Housing and Redevelopment Authority for 2015. Chairperson Commers asked if one or two signatures were required for transactions. Mr. Bolin replied two signatures; the resolution authorizes three people that can sign for the Authority. MOTION by Commissioner Eggert to approve the resolution designating Wells Fargo as the official depository for 2015. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNA1vIMOUSLY 4. Approval of Resolution Designating Official Newspaper Paul Bolin, HR.A Assistant Executive Director, stated that the Fridley City Charter Section 12.01 requires designation of an official newspaper for the Fridley Housing and Redevelopment Authority. Staff is recommending that Fridley Sun Focus News be designated as the official legal newspaper of the Fridley Housing and Redevelopment Authority for 2015. The Minneapolis Star Tribune is designated as the Fridley Housing and Redevelopment Authority's second official newspaper for the year 2015. Commissioner Gabel said that she does not get the Sun Focus Newspaper. Wally Wysopal, City Manager, replied that some neighborhoods do not get the Sun Focus because there is no one available to distribute the paper in that area. MOTION by Commissioner Holm to approve the resolution designating the Official Newspaper. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 5. Approval of Amendment to CEE Contract Paul Bolin, HRA Assistant Executive Director, stated that 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. Mr. Bolin said that CEE provides technical assistance to Fridley homeowners on such topics as remodeling, energy conservation, indoor air quality and related subjects. The partnership • City of Fridley Housing and Redevelopment Meeting of January 8,2015 3 with CEE allows the Authority to leverage outside dollars and customize loan packages to meet individual homeowners' circumstances: Mr. Bolin said the current agreement with CEE expired on December 31, 2014. Staff would like to continue working with CEE and is recommending that the HRA renew its commitment for another two years. For the first time in ten 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. Mr. Bolin reviewed the following changes to the existing agreement. CEE provides a number of marketing efforts each year like postcards, mailers and participation in the Home and Garden Show. The Authority only pays for printing and mailing of marketing materials. The contract fee was $55/hour for development of customized marketing materials and the new cost will be $65/hour to cover the cost of the service. CEE had been paid a flat fee of $130 per visit for remodeling advisor services which typically took 1 '/z - 2 hours to complete. Due to increases in CEE's cost to deliver these services the rate of compensation for this service will now be $225 per visit. The Authority typically has provided 10-20 of these visits per year. Mr. Bolin said that staff recommends that the Authority approve the amendment to the Loan Origination Agreement with the Center for Energy and Environment through December 31; 2016. Commissioner Gabel thought that was a large increase on the remodel advisor visits. Mr. Bolin replied that in 2004 the fee was $130 and this is the first increase proposal since then. Because of the increase in overhead and labor costs, the new rate is $225 to cover CEE's costs. Commissioner Gabel didn't think the increase was out of line, just wondered why it was such a large increase. Chairperson Commers asked if the price would increase on the Home Energy Squad visits. Mr. Bolin replied no, the HRA share is going down because they received grant funds from Xcel Energy to use towards this program. MOTION by Commissioner Gabel to approve amendment to the CEE Contract. Seconded by Commissioner Holm. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY . City of Fridley Housing and Redevelopment Meeting of January 8, 2015 4 ' 6. Public Hearing—Sale of Lot at 5875 2"d Street MOTION by Commissioner Gabel to open the public hearing. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:15 P.M. Paul Bolin, HRA Assistant Executive Director, stated that Kaleab Girma of Real Estate Transformers has submitted a lot reservation agreement to build a new home on the lot located at 5875 2°a 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. Mr. Bolin said that based on Mr. Girma's recent history in the city, Staff is confident Mr. Girma will design the home and find a buyer over the next 60 days. Staff recommends approval of the resolution authorizing the sale of the lot to Rea Estate Transformers for $30,000 upon submittal of home plans meeting criteria of the Authority's Housing Replacement Program. Chairperson Commers asked if after 60 days the reservation would terminate if Mr. Girma doesn't find a buyer. Mr. Bolin replied yes,but the Authority has discretion to extend the 60 days if needed. Commissioner Gabel noted that it is the middle of the winter and extra time may be needed to start construction. Chairperson Commers asked where the 60 days was noted in the resolution. Mr. Bolin replied that it is not in the resolution but that is the city's policy and criteria for HRP and the dating is on the lot reservation forms that the buyers and builders fill out. Commissioner Gabel asked if the 60 days was enforceable if it is not in the resolution. Mr. Bolin replied that if the builder is unable to find a buyer the Authority can adopt a resolution to rescind the approval of the sale. MOTION by Commissioner Eggert 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 7:20 P.M. / • City of Fridley Housing and Redevelopment Meeting of January 8,2015 5 MOTION by Commissioner Holm to approve the sale of 5875 2°d Street to Real Estate Transformers. 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 no loans closed last month so the year to date total is 201oans. This was a good year for the loan program as there were twice as many loans closed as last year and it was the third highest total in the last nine years. There were also no remodeling advisor visits in December and only six year to date. The Home Energy Squad had 17 visits in December making a total of 127 visits in 2014 and the program just started in April. Mr. Bolin has a meeting set up with CEE next week to talk about marketing their programs for 2015. The remodel advisor visits were down in all communities, not just Fridley. Mr. Bolin reviewed the Authority's 2014 accomplishments: • Cielo project kick off on University Avenue. The Authority started purchasing property in 2006 and in 2007 conducted a planning process, acquired all properties and broke gound with Cielo this fall. • Broke ground on Northern Stacks and the first building is nearly completed. Demolition of the southern BAE building is close to starting. Staff inet yesterday with 25 different people trying to get the final details together to keep BAE in operation while they remove part of the building. MOTION by Commissioner Gabel to accept the letter from DEED dated December 19, 2014 relating to the State Grant. Seconded by Commissioner Holm. UPON A VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY • The Columbia Arena purchase has closed and letters of protection from the MPCA have also been received. The letter indicates no association on the soil vapors. During the course of demolition if soils are moved around it could aerate the soil and release vapors. It seems that the MPCA is ok with that approach. • Last month the Authority hired the Corridor Development Initiative to start a public planning process to figure out the best use for the Columbia Arena site. Four public meetings will take place 3/11, 3/25, 4/8 and 4/22. All Wednesday nights at the Community Center at 6:30 p.m. Information will be posted on the city's website and in the paper to draw a large crowd. City of Fridley Housing and Redevelopment Meeting of January 8,2015 6 � • Lastly,the Metro Community Home and Garden Show is scheduled for Saturday February 28 from 9-3 at the National Sport Expo Center. http•/lnorthmetrohome andg.arden.com Adiournment MOTION by Commissioner Eggert to adjourn. 5econded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:32 P.M. Respectfully Submitted, Krista Peterson, Recording Secretary Housing and Redevelopment Authority M E M O R A N D U M DATE: February 26, 2015 TO: Wally Wysopal, Executive Director of HRA FROM: Paul Bolin, Assistant HRA Director SUBJECT: Approval of Mowing Contractor for 2015 Introduction In 2013, the HRA participated with the City in soliciting bids for mowing services. Passau Lawn Care had the lowest pricing and was awarded the mowing contract, with options for extensions. Passau Lawn Care has consistently been the lowest priced service, when we have sought bids, and have been providing mowing services to the Authority since 2011. HRA Staff has been pleased with Passau Lawn Care's work these past summers. The rates are relatively low and the service very reliable. Passau has been flexible and Passau Lawn Care has agreed to a contract extension to provide mowing services for the same rate as the past two years. Recommendation Staff recommends that the Authority contract with Passau Lawn Care for the 2015 summer mowing season. Not only will we continue to receive very reliable service from Passau Lawn Care, it will be provided at the same rates (per lot) charged for the past two years. Housing and Redevelopment Authority M E M O R A N D U M DATE: February 26, 2015 TO: Wally Wysopal, Executive Director of HRA FROM: Paul Bolin, Assistant HRA Director nd SUBJECT: 6000 2 Street ACCAP Redevelopment Introduction / Overview In 2012, the HRA approved selling a non-providing them the land area necessary to redevelop the site they own adjacent to this lot. The Anoka County Community Action Program (ACCAP) was not successful in securing the Federal HOME funding necessary for carrying out the redevelopment of the 4 unit building they own at 6008 2nd Street. ACCAP is seeking to demolish the existing building and construct a building large enough to accommodate 12 workforce rental housing units and 1 additional unit for a full time property manager. Combining the Authority's non-buildable 40' wide corner lot with ACCAP's lot provides the land area necessary to complete the redevelopment. ACCAP's new building will be a mix of 3-bedroom units on the main floor, 2-bedroom units on the 2nd floor, and 1- bedroom units on the 3rd floor. The building will be equipped with an elevator. According to ACCAP, the new building will have a value in excess of $2M. 6 Current Request ACCAP is again working to bring this redevelopment project forward, planning to formally apply for funding from the Minnesota Housing Finance Agency (MHFA) in June. Early review by MHFA Staff indicated that ACCAP needs more funding and support, from local governmental and charitable sources, for their application to be more competitive. ACCAP recently contacted HRA Staff to discuss potential cash contributions, low interest loans and other means of support from the Authority. After further discussion, it was determined way for the Authority to provide support for the project. Though a non-profit organization, ACCAP does pay property taxes on their rental properties. It is a common misperception that non-profit organizations do not pay taxes. It is the use of the building that dictates whether or not taxes are paid, not the status of the ownership group. In this instance, rental property taxes generated will increase, from $3,000 / year to approximately $12,000 / year (based on 2015 taxes). The City share of taxes collected from the property will increase from $356 to approximately $1,388 per year after redevelopment. The Authority approximately $37 to $416 per year. Existing Building Value: $195,000 Proposed Building Value: $2.3M Recommendation Staff recommends adoption of the attached Resolution, allowing for the gifting of the property to ACCAP, upon ACCAP successfully finding financing for construction of the building. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2015-04 A RESOLUTION AUTHORIZING THE TRANSFER OF A RESIDENTIAL LOT BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA AND THE MODIFICATION OF HRA RESOLUTION NO. 2012-04 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. The Authority by HRA Resolution No. 2012-04 approved the sale of the parcel identified nd as 23-30-24-22-0059 with a street address of 6000 2 ka . 1.02. ACCAP is attempting to construct a 13 unit multi-family workforce rental housing Section 2. Findings. 2.01. The findings in Section 2 of Resolution 2012-04 are hereby restated. 2.02. In order for ACCAP to secure financing for the Project from MHFA, ACCAP needs to demonstrate additional commitment from the Authority. 2.03. The project, as noted above, meets Authority goals and objectives and in order to facilitate the construction of the Project and enhance the local match, the Authority has been requested to contribute the Parcel. Section 3. Approval of Transfer. 3.01 The transfer of the Parcel is hereby approved provided that transfer shall not occur until ACCAP is ready to close on the financing which is adequate to construct the Project. HRA Resolution 2015-04 Page 2 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 transfer of the Parcel in accordance with this Resolution. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 5TH DAY OF MARCH, 2015. _____________________________________ LAWRENCE R. COMMERS - CHAIRMAN ATTEST: _____________________________________________ WALTER T. WYSOPAL EXECUTIVE DIRECTOR MMB: 4838-5138-6402, v. 1 Fridley HRA Housing Program Summary Cover Page March 5, 2015 HRA Meeting ReportDescription Loan Summary Report Loan application activity (e.g. mailed out, in process, closed loans) for year- to-date. Also shows the number of field appointments scheduled and completed for the Remodeling Advisor Services administered by Center for Energy and Environment. Home Energy Squad E-mail detailing recent activity and year to date. K:\HRA\Agenda Packets\2015 Agenda Packets\2015 03 05\Housing Program Cover March 15.docx FRIDLEY Loan Summary Report Activity for Period 1/1/15 -2/23/15 cee�' Center for Energy and Environment Application packets requested/mailed: This period: 1� Year-to-Date: �1 Residential Advisor Visits: This period: �0 Year-to-Date: �0 Loans currently in process for residents in your City/Neighborhood: �4 Closed Loans This period: Year-to-Date: Fridley Units Units 0 p Closed End 0.00 0 0.00 0 Last Resort 0.00 0 0.00 0 Total 0.00 0 0.00 0 Leveraged Funds This period: Units Year-to-Date: Units 0 0 Total 0 0 Types of Improvements Financed YTD #of Projects %of Total Types of Properties Financed YTD # °/,of Total Bolin, Paul Subject: FW: HESE Visits From: Stacy Boots Camp [mailto:sbootscampCa�mncee.org] Sent: Thursday, February 26, 2015 11:41 AM To: Bolin, Paul Subject: Re: HESE Visits Hi Paul, So far there have been 13 visits in 2015. 2 in January and 11 in February. Looks like we've got 12 others on the calendar already for March and April. Let me know if there is anything else I can get you. Have a great day, Stacy �iacy t3oots Camp � ,. .:°s� :;rain.���.ar � �i12.2�#4.�4%� ;�ce,- �c�r �r� � ��; �,�?�: ��nviron,��ent „'" s"�!:rih 3rd l;ve n5�s0 � r�lii7neapolis, MN 55401 -. ,� �{� i