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HRAM 11/05/2015 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION November 5, 2015 Call to Order: Chairperson Pro Tem Gabel called the HRA Meeting to order at 7:04 p.m. Roll Call: MEMBERS PRESENT: Pat Gabel Stephen Eggert William Holm Gordon Backlund MEMBERS ABSENT: Lawrence Commers OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Darin Nelson, Finance Director Scott Hickok, Community Development Director Roger Fink, Trident Development Jim Casserly, Development Consultant MOTION by Councilmember Holm to move informational item nos. 1, Cielo Update, to item nos. 1 on the Agenda. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 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 PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 2.APPROVAL OF OCTOBER 1, 2015 MEETING MINUTES MOTION by Commissioner Holm to approve the minutes as presented. Seconded by Commissioner Eggert. Housing and Redevelopment Authority Commission Meeting of November 5, 2015 2 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 3.APPROVAL OF 2016 HRA REGULAR MEETING DATES MOTION by Commissioner Eggert to approve the 2016 HRA Regular Meeting Dates. Seconded by Commissioner Holm. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 4.APPROVAL OF PRELIMINARY 2016 HRA BUDGET Darin Nelson , Finance Director, noted there is no formal action to take place tonight on this item. The HRA’s input and final TIF numbers from Anoka County will lead to staff making revisions to the draft budget and then presenting a final version for consideration at the December HRA meeting. The budget is broken down into three parts; general funds, special revenue funds and capital outlay funds. These are fund balances, not cash balances. Chairperson Pro TemGabel asked about the Columbia Arena and where those expenditures were located. Mr. Nelson replied that those expenses are in the general fund as that is not in a TIF district yet. Staff is keeping track of those expenditures. Paul Bolin , HRA Assistant Executive Director, provided an update on the Columbia Arena and reported that a fuel tank was under where the second rink was built. The tank has been removed but the tank did leak. The contamination looks to be contained in the clay soil and it isn’t expected to find gasoline outside the immediate area. Staff is waiting to hear from the MPCA for direction on whether to dig out the soil now or wait until the area is redeveloped. Depending on the direction that is given, more expenditures may come in 2016. Chairperson Pro TemGabel recalled seeing something that said the petroleum fund may pick up those expenses. Mr. Bolin replied that is a reimbursement program so expenditures may be reimbursed. INFORMATIONAL ITEMS 1.CIELO (GWNE) UPDATE – Roger Fink, Trident Developer Roger Fink , Trident Development, stated that the ground breaking ceremony for this development was one year ago today. The development will be a combination of studio, 1, 2 and 3 bedroom apartments that are turning out very nice. The units will have granite countertops in the kitchen and bathroom, laminate floors with a full complement of appliances. The building Housing and Redevelopment Authority Commission Meeting of November 5, 2015 3 will have a key fob security and locking system that is similar to key cards in hotel doors. Each unit has its own central air and heat through duct work in the ceiling. Some units have a built in fireplace or bookshelves. Amenities also include a fitness room, community room, business center and canteen vending room. One of the common areas will be converted into a self-serve vending market. This is their first entrée in an apartment building; they usually are in hospitals or schools. This is a little convenience store using an on your honor system. st Mr. Fink stated that construction is on schedule and they are looking to open the 1 of February 2016. The decorative fence now has all the columns in place with the brick front and the sidewalk is laid out. The stone is also going up and they are getting tremendous feedback from the community. During construction they did encounter contaminated soil to deal with and utility issues to add another $191,000 to the calculation. The management company is in the process of interviewing onsite management personnel and they have had 475 inquiries for rental so far. They are optimistic for a rapid fill and starting the second phase. Conversations have ndst already been initiated with the lender about starting the 2 phase if the 1 building fills quickly. nd Chairperson Pro Tem Gabel asked how soon they anticipated to start on the 2 building. st Mr. Fink replied that they would like to see 50% occupancy on the 1 building with continued strong interest. Once that mark is reached then they will start on the loan documents and nd appraisal for the new building. The architectural design is already done for the 2 building. They have received questions about the rental wages and whether subsidized housing would be in this building. This property is not enrolled in subsidized or section 8 housing. The market rate is between $990 and $2025 per month plus utilities. Commissioner Backlund asked if the lease terms were for one year or longer. Mr. Fink replied that the lease term is generally one year. They will start renting in the winter and try to stagger the leases so all tenants don’t renew in middle of winter. Leases will be spread out through the year as best they can. Chairperson Pro Tem Gabel asked if the building was pet friendly. Mr. Fink replied that some areas will be designated as pet friendly. Over 60% of rental households have some kind of pet. Chairperson Pro Tem Gabel recalled that there was some dirt piles on site and asked if they would be leveled out. Mr. Fink replied that should have been hauled away so it may be gone. If there is dirt on site it is for the future phase. Commissioner Eggert asked if the rental units got a parking space. Mr. Fink replied that each market is different; some include one free covered space with rent. They could go either way depending on the market. The number of parking stalls is less than Housing and Redevelopment Authority Commission Meeting of November 5, 2015 4 100% of the units so parking will be a premium because they are short in supply. There is enough overall parking, but not covered parking. Commissioner Eggert noted that this business is all about the amenities. Mr. Fink replied that is correct, they drive the rents. Commissioner Eggert asked if other amenities would be added. Mr. Fink replied that as they progress into other phases, opportunities to do outdoor amenities will come into play. The landscaping hasn’t been installed but the plan is to bring that in next spring. Chairperson Pro Tem Gabel asked if there would be a pool in one of the buildings. Mr. Fink replied no, they are not a big fan of pools as it’s not worth it. It is a maintenance expense, liability and insurance expense and at the end of the day people like the idea but so few take full advantage of it. 2.CEE HOUSING PROGRAMS UPDATE Paul Bolin , HRA Assistant Executive Director, reported that in October one Loan was closed making 6 year to date; Remodel Advisor Visits had no visits making three year to date; and the Home Energy Squad had 22 visits in October for a total of 98 year to date. 3.COLUMBIA ARENA UPDATE Paul Bolin , HRA Assistant Executive Director, said the demo is complete and rough grading is complete by the contractor. Dirt from Mr. Fink’s site was hauled to the arena site for top soil. The contractor is ready to seed but the Parks and Recreation Department wants to smooth the property out more with their equipment. Everything is done, on time and somewhat under budget. Commissioner Backlund asked what the outcome was of the Freon. Mr. Bolin replied that the MPCA was happy with how the Freon was taken care of and it dissipated. Adjournment MOTION by Commissioner Eggert to adjourn. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 8:04 P.M. Housing and Redevelopment Authority Commission Meeting of November 5, 2015 5 Respectfully Submitted, Krista Peterson Recording Secretary