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HRA 01/072016 January 7,2016 HRA Meeting Regular Meeting Agenda 7•00 p.m. Call to order Roll call Action Items 1. Approval of Expenditures 2. Approval of December 3, 2015 Meeting Minutes 3. Approval of Resolution Designating Official Depositories 4. Approval of Resolution Designating Official Newspaper 5. Approval of Resolution Modifying Redevelopment Plan For Redevelopment Project No. 1 Informational Items 1. Business Retention & Expansion Update—2015 Review 2. Housing Program Update Adjournment K:\COMMISSION AGENDASU-IRA Commission�2016 HRAVanuary-2016Agenda Outline.docxK:\COMM1SS10N AGENDASV-IRA Commission�2016 HRAUanuary-2016Agenda Outline.docx CITY OF FRIDLEY SIGN-IN SHEET � HOUSING & REDEVELOPMENT AUTHORITY MEETING �-- � a.nu-ar�l--�. � � � �P Name and Address Agenda Item of Interest Check Report �"' City of Fridley, MN By Check Number Date Range: 12/14JZ015 - 12/17J2015 !^'ridlc i• Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Numher Bank Code:APBNK-HRA-APBNK-HRA hra-623 FRIDLEY,CI7Y OF 12/16/2015 Regular 0.00 1,080.97 29834 hra-1113 MONROE MOXNf55 BERG PA 12/17j2015 Regular 0.00 10,086.45 29835 hra-1201 LANp TITLE,INC 12/17/2015 Regular 0.00 200.00 29836 hra-1933 SEVENICH,BUTLER,GERLACH&BRAZIL 12/17/2015 Regular 0.00 1,116.25 29837 HRA-2609 RACHEL CONTRACTING 12/17/2015 Regular 0.00 53,947.28 29838 hra-2611 CENTRAL MINNESOTA DEVELOPMENT COMPANY 12/17/2015 Regular 0.00 4,950.00 29839 Bank Code APBNK-HRA Summary Payable Payment Payment Type Count Count Discount Payment Regular Checks il 6 0.00 71,380.95 Manual Checks 0 0 0.00 0.00 Voided Checks 0 0 D.00 0.00 Bank Drafts 0 0 0.�0 0.�0 EFT's 0 0 0.00 0.00 11 6 0.00 71,380.95 12/ll/2015 4:]1:58 PM �'aye t of 2 . � AGENDA ITEM ,;f;�„4L, HRA MEETING JANUARY 7, 2016 To: Wally Wysopal, Executive Direct�fv` Paul Bolin, Assistant Executive Director From: Darin Nelson, Finance Director/Treasurer Date: December 28, 2015 Re: Resolution Designating Official Depositories for the Year 2016 Attached is a resolution appointing Wells Fargo Bank Minnesota N.A. as the Housing & Redevelopment Authority's official depository for 2016. The service the HRA receives from Wells Fargo has been first-rate. Wells Fargo is responsive to not only our requests for information,but als� 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 Authority's required banking needs. This proves to be both beneficial and efficient, as our banking needs are quite complex. Wells Fargo also znonitors the Authority's daily cash balances to assure the deposits are fu�iy collateralized. This assures deposits are safe and not subject to loss if the bank were to fail. Tli�s 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 2016. � RESOLUTION NO. 2016 - 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 certify that at a meeting of said corporation duly and properly called and held on the 2nd day of January 2014 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 the following two 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 of the following two 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 rati�ed, approved and confirmed. . Resolurion No. 2013-_ Page 2 . 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 the following two 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 THE CITY OF FRIDLEY THIS 7th DAY OF Jt1NCJARY 2016. LAWRENCE R. COMMERS, CHAIRPERSOP.1 ATTEST: WALLY WYSOPAL—EXECUTNE DIRECTOR = AGENDA ITEM �ri�,eY HRA MEETING OF JANUARY 7, 2016 To: Wally Wysopal, Executive Direct2�:� Paul Bolin, Assistant Executive Director From: Darin Nelson, Finance Director/Treasurer Date: December 28, 2015 Re: Resolution Designating Official Newspaper for the Year 2016 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 2016. The Minneapolis Star Tribune is designated as the,Fridley Housing and Redevelopment Authority's second official newspaper for the year 2016. RESOLUTION NO.HRA 2016- RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR THE YEAR 2016 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 2016 for all publications required to be published therein. BE IT FURTHER RESOLVED that the Minneapolis Star and Tribune be designated as the Fridley Housing and Redevelopment Authority's second official newspaper for the year 2016. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS 7TH DAY OF JANUARY 2016. LAWRENCE R. COMMERS, CHAIRPERSON ATTEST: WALLY WYSOPAL, EXECUTNE DIRECTOR g�� ACTION iTEM HRA MEETING ,::. . �^ Fri�'� January 7, 2016 Date: December 30, 2016 To: WaNy Wysopal, Executive Director�/�-,� Fram: Paul Bolin, Asst. Executive HRA Director Subiect• HRA Proiect Area Expansion — Commercial Loan Propram As you are well aware, the Authority has spent the past several months reviewmg all of its existing housing and loan programs. During November and December, the Authority and Staff met with Mike Mufrooney, President of Centraf Minnesota Development Company (CMDC), to develop guidelines for the propased commercial revolving {oan fund (RLF). In working with legal counsel, it was determined that the Authority should limit loans to properties focated in its "Redevetopment Project Area". The Authority's "Redevefopment Project Area" was originally created when the City approved its first TIF District in 1979. The project area has been expanded each time the Authority creates a new T1F District. Designating a "Project Area" allows the Authority to spend resources outside of its individual TIF Districts. In order to provide loans to our business community, we recommend adding any and all commercialfy and industrialiy zoned properties, not already included, into the "Project Area". The attached maps show the new parcels being added. Any and ali properties that may become part of a large redeveiopment effort around the Columbia Arena are aiso being added to the "Project Area". To formally add the new parcels to the "Project Area", the Planning Commission must review the proposed changes for consistency with the Comprehensive Plan. The Planning Commission reviewed the changes at their December 16t" meeting and noted that a number of the parcels being added were also identified in the Comprehensive Plan as areas for potential redevelopment (see maps on following page). The resolution the adopted is attached to this memorandum. A public hearing will also be held at the City Council on January 25`h to complete the approval of the increase in the size of the "Project Area". Staff recommends the Authority approve the attached resolution, increasing the geographic area of redevelopment project number 1 ("Project Area"). �--- __; _ _ ��f ,�s,.. � � ,� �M Y. __ _ - : � a � � �` � - F�ridll "`��; —=.��'3�, ,� �t~r a�F `� t ��.. '�Y' , �t�t�t.� �� " _ � �^� �'' �' `�C �.� . f � ,i�`£�IF'�'rt+A=-ae'� �tfi � ��.,,�¢ ��t`�j��L �'��k+p�ii��f�11A�i ... �-i�I 4r• s • . r:, .�� `+,�`i. ,r",t.,�4 '�� .�. a �: , . � . . . . . .. _.�.- � �� ' .. .- . �y�,{,� �'1Y�I�fO� �q'N._- 15 f.�� _ . ..- _ _ __ �; Jq; 4�� 1°.( � _ � NF. �+�v`,.�� y�,r�' � . ,�.,` „�` �'"+ -g---3 ti -a. ..� _ f°— ��.tr�N�r �'�� `�. 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' ��; t . V _ �, ��' t'''�f � '�.��'° � `i ";,, ., �� — �• ^`r ,"' ''_�."- �+�s t Si} � �:, _. � �.� j C,..t .�( E' ;s # F ;�} � p •� �� . .tl.Hib�lleo� ', � ': 1 };'r . . ._ _ . ' � � ��il� H �w r � I� � ��;'�'��j i�.:� • L E � � #� � �'i �"; tl'Y�rs , �� ,. 1 � �{ ; ��+��:�� ' -�� ;` r.s�ar.:e�:y�-�c,eh*r �t t° Q � � _ �see �e r _ �r.L� �.m �fF 1�'12^6 '�� 4� ' __ Y: { . .� � 1��' 1 ^�-' ,�i �� .., .. � y:� *��:,s:_. .. �,,,�,_ _ RESOLUTION NO. HRA A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 TO REFLECT ENLARGEMENT OF REDEVELOPMENT PROJECT N0. 1 BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of the Housing and Redevelopment Authority in and for the Ciry of Fridley, Minnesota (the "Authority") as follows: Section 1. Recitals. 1.01 It has been proposed that the Authority modify, approve, and adopt a Modified Red�velopment Plan relating to Redevelopment Project No. 1 to reflect enlargement of the project area, pursuant to and in accordance with Minnesota Statutes, Seetions 469.001 to 469.047, inclusive, as amended and supplemented from time to time. 1.02 The Authority has investigated the facts and has caused to be prepared with respect thereto, a Modified Redevelopment Plan for Redevelopment Project No. 1 to reflect i enlargement of the project area. 1.03 The Authority has performed all actions required by law to be performed prior to the modification, approval, and adoption of the Modified Redevelopment Plan. 1.04 The Authority hereby determines that it is necessary and in the best interests of the City and the Authority at this time to modify, approve, and adopt the Modified Redevelopment Plan to reflect enlargement of the project area. Section 2. Findin s. 2.01 The Authority hereby finds that the assistance to be provided through the adoption and implementation of the Modified Redevelopment Plan is necessary to assure the development and redevelopment of Redevelopment Project No. 1. 2.02 The Authority hereby finds that the Modified Redevelopment Plan conforms to the general plan for the development and redevelopment of the City as a whole in that they are consistent with the City's comprehensive plan. 2.03 The Authority hereby finds that the Modified Redevelopment Plan affords maximum opportunity consistent with the sound needs of the City as a whole for the development and redevelopment of Redevelopment Project No. 1 by private enterprise, and it is contemplated that the development and redevelopment thereof will be carried out pursuant to contracts with private developers. Section 3. Modification Aqproval and Adoption of Modified Redevelopment Plan. 3.01 The modifications to the Modified Redevelopment Plan for Redevelopment Project No. 1 reflecting enlargement of the project area are hereby approved and adopted by the Commissioners of the Authority and are forwarded to the Fridley City Council for public hearing, review, and approval. Section 4. Filinq of Plans. 4.01 Upon approval and adoption of the Modified Redevelopment Plan, the Authority shall cause said Plans to be filed with the Commissioner of Revenue. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS DAY OF , 2016. LAWRENCE R. COMMERS, CHAIRPERSON ATTEST: WALLY WYSOPAL, EXECUTIVE DIRECTOR 2 STATE OF MINNESOTA } COUNTY OF ANOKA } CITY OF FRIDLEY } I, Debra A. Skogen, the undersigned, being the duly qualified City Clerk of the City of Fridley, Minnesota, do hereby certify that I have carefully compared the RESOLUTION attached hereto, adopted by the Fridley Housing and Redevelopment Authority of the City of Fridley at said meeting on , 2016, with the original record thereof on file in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to: RESOLUTION NO. HRA A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 TO REFLECT ENLARGEMENT OF REDEVELOPMENT PROJECT NO. 1 '�, WITNESS MY HAND as City Clerk of the City of Fridley and the seal of the City, this day of , 2016. (SEAL) DEBRA A. SKOGEN CITY CLERK OF THE CITY OF FRIDLEY MMB:4849-9112-5803,v. 1 3 RESOLUTION FINDING THAT THE INCREASE IN GEOGRAPWIC AREA TO REDEVELOPMENT PROJECT NO. 1 IS CONSISTENT WITH THE FUTURE LAND USE PLAN OF THE CITY OF FRIDLEY . WHEREAS, the Housing and Redevelopment Authority in and for the City of Fridley, Minn�sota (the "HRA") and the City of Fridley (the "City") are proposing to enlarge Redevelopment�Project No. 1 (the "Project Area") by modifying its geographic boundaries and the Redevelopment Plan (the "Plan") relating thereto, pursuant to Minnesota Statutes, Sections 469.001 to 469.047 and 469.174 to 469.1799, inclusive, as amended and supplemented from time to time, and WHEREAS, the additional property proposed to be added to the Project Area is described on the attached-Exhibit A and illustrated on the map attached as Exhibit B, and � VyHEREAS, the Planning Commission has reviewed said modification : to the Pian and Project Area, and has determined its consistency to the overall future land use plan of the City. s NOW THEREFORE, BE IT RESOLVED BY THE FRIDLEY PLANNING COMMISSION that the adoption of the modification to the Plan for the Project Area is consistent with the City's future land use plan. Adopted this 16th day of December, 201 . � � , � D i K ndric , Ch ' an ATTEST: � Stacy trom rg, City of Fridley ner � EXHIBIT A Parcel Identification Numbers(PINS)to be aded to Project Area 103024140055 133024330046 123024230005 123024430001 033024440081 103024140015 133024320070 123024230027 123024340003 033024440059 033024430008 133024330057 123024220029 033024410005 033024440075 113024220028 133024330056 123024220006 03302442EASE 033024440040 123024120076 133024330034 123024220012 033024420180 033024440089 123024120053 113024220026 123024220013 033024410001 033024440026 113024220008 023024330032 033024420178 033024130016 033024440017 153024420102 13302433COND 113024220010 153024440039 033024440086 103024140056 023024330028 113024320024 113024340003 033024440085 123024120075 133024330052 113024320029 033024130013 033024440036 113024120004 133024330050 113024230Q23 113024430001 033024440028 253024220013 133024330055 113024220011 113024340005 033024440024 253024220012 133024330061 123024220026 123024330001 033024440032 253024220010 133024330062 113024220012 113024440001 033024440010 253024220014 133024330060 153024140054 153024440040 03302444COND 253024220015 133024330045 153024140055 123024240053 033024440077 253024220011 023024330006 153024140056 113024330003 033024440078 153024130054 113024230009 153024140057 113024330005 033024440023 153024130055 133024330044 153024140058 103024440061 033024440003 113024220021 133024330049 153024140082 303024440063 033024440001 133024310073 133024330053 153024410045 103024440062 033024440072 123024320004 133024330051 033024410003 103024140054 033024440087 113024230019 133024330048 103024410050 103024110026 033024440035 113024230006 113024220027 113024320012 033024420153 033024440056 113024230005 133024330054 103024140022 123024340004 033024440082 123024220008 133024340008 113024220015 i33024110087 033024440061 123024220030 133024340042 113024220017 04302414ROW 033024440063 113024230003 113024120058 023024330019 12302422GAP 033024440073 133024310072 113024320030 023024330018 04302414ROW 033024440065 153024130056 113024220023 023024330029 12302422GAP 033024440041 133024310074 113024220022 023024330011 143024320279 033024440080 343024430013 033024420150 033024410004 143024320280 033024440091 123024220003 033024420177 113024220016 143024320278 033024440025 113024230004 033024420161 113024320011 143024320295 033024440002 113024230008 033024420126 113024420006 143024320294 033024440009 123024220028 033024420300 103024410051 143024320293 033024440030 113024230002 033024420133 103024110019 143024320292 033024440038 113024220002 033024130017 023024330015 143024320297 033024440062 103024140057 033024420175 103024140050 143024320298 033024440060 113024320028 123024230026 033024430002 143024320281 033024440088 113024220030 12302423CIC 033024430003 143024320296 033024440037 123024240047 123024240056 023024330022 143024320291 033024440083 123024310025 123024220016 023024330013 033024440079 033024440020 123024310051 123024230028 123024320009 033024440055 033024440084 033024430044 113024320035 123024330006 033024440064 033024440076 13302433COND 103024110003 113024420010 033024440054 133024330033 033024420176 113024230022 033024440071 123024240054 033024420155 023024330031 033024440034 023024330008 033024130007 343024420014 033024440074 023024330025 033024130003 123024330004 033024440042 123024210002 113024230012 123024330002 033024440039 123024210017 113024320031 113024310022 033024440090 033024430009 123024230006 123024330005 033024440057 ��c��b�t � �� :-=�� ' �; �± �` � �� .�� i�� ' �- :-- '��, -- C c�i,�,F F�� ;� �� _� { � .� � � `�� `�E� �' �_�—,�;�� Redevelopment Project Area �,` ,- �' ��.—r; � � r ,\ .. 9TF%�� IT41Pr'��— � ' '' f �� ` � �� -� , - ��'�, �� '. \�`` � . , �� _ L_ � � _ �---, _ •.�\�\� ;it�� I— �g'� �� -- � � � �� ' � �� _ _ _ � . � � � , � �� jE � � ��___L� � ; _� � J 1 � �. ��t/.f .3RDA� � � : /� � 'r' i 2 � i � �Q- .'-I l Y)f i�. �: � t _ '-�-� - - k � i �' , 4 � / �� , � � ,� :�_ ; � � ��, � �� . � � � ��1� �: � I � � �` ��I� �� MISSS IPP ST I�� I�SISSIP-PI=ST—'�'� . �; � �� , � , 111�� ° ,;� � ' �� e � E_ � � �� , � � -��=�� `;' � � �� = � I' �� '��-��!�? � °�� { a: # t �� i }a`";`��''� ' € ° �. � � � l "� 1� ;�� , ,� oEN� , �� w `\'.'` i�� ' ;: � � . � i (; =�,�----� .�� - �� J r � �3 L-� � � ��I `T�S�,� ♦'� � � ,r � � J� �- ;,, ` -,�� ;��_, � t , � i" �� /� ;'�_ �� - �e 1, � � I �—.� �-�� N �V � �� '� �--� ' .. . . ._. _ . ' i� �, � '- --- - �_ ,! 1 I� �9. ` � ��, �, I `1 ,� � �� , 1\ >�. � i�� ; I,E�END � i 1 '� 0 C/l Property not Currently � ti � Within Redevelopment Project Area � Q Existing Redevelopment ProjectArea i �� N � Z o o.2s o.s � S„� /�� ; Miles � � (' j � � _._. Y ' t Date: 12/10/2015 owment atti:K:\GISig e etey anninglprojects a_uptlete.mxd �` INFORMATIONAL ITEM - HRA MEETING �„di�� JAN UARY 7, 2016 Date: December 28, 2015 To: Wally Wysopal, Executive Directo�e=�"C� From: Jacquel Nissen, Business Retention Assistant Subiect: Business Retention Program - 2015 Year in Review Since the summer of 2014, HRA & City Staff have been conducting Business Retention and Expansion visits. In 2014 staff had met with almost 30 businesses. Since June of 2015, staff met with an additional 80 businesses, now meeting with nearly 1/3 of businesses since the program started. The visits were meant to create a stronger two way communication between our businesses and city staff. The interactions with our businesses have allowed staff to discover and address issues facing Fridley businesses. Many issues brought up, were issues that most likely would not have been addressed, had staff not contacted businesses through our retention program. The largest finro issues among businesses are: finding skilled employees, and finding financing for building upgrades/expansions. Almost all manufacturing and trade � industries cannot find enough employees to fully staff their needs, or struggle to find skilled employees. Financing has been a topic among many businesses, especially smaller businesses in older misfit buildings. Often the businesses in Fridley are successful, but cannot come up with the finances to upgrade their building, or buy new equipment to remain competitive. Other issues staff often heard were: crime/theft, confusion and disagreement on what the sign code allows, and miscommunication between city staff and businesses on other rules/codes. There have been changes made, and/or currently being worked on, to address these common issues among Fridley businesses. The City has changed the electronic reader board sign code to allow businesses to change their message every 8 seconds, versus the previous 45 seconds. This helped retail businesses feel they are getting the full use out of electronic signage that is designed to be able to change messages quickly. Staff is currently partnering with Anoka County Workforce Center and DEED to address the labor issues �y hosting a Job Fair at our Community Center in April of 2016. As you are aware, the Authority is currently in the processes of partnering with CMDC to offer financial assistance to our businesses. Information taken from visits about crime/theft issues have been addressed or discussed with Police department staff. If needed plans, ideas were put in place at those businesses to help crime issues diminish. Any miscommunication between businesses over city codes, or expansion allowances, was always addressed after visits. Not only were problems covered in many business retention visits, businesses also shared why they like Fridtey. Many businesses discussed the convenience factor of Fridley: Interstate 694, and its connection to all other major roadways, the BNSF Rail, Northstar Commuter Rail, University Ave, and Highway 65. Another topic often discussed was the "business friendly" factor Fridley has compared to larger cities like Minneapolis and St. Paul. The line often heard from businesses was "Fridley is as close to Minneapolis as you can get without actually being in Minneapolis, and Hennepin County." Staff also heard that Fridley to this day, is still a very tight-knit community of businesses which is hard to find this close to the Twin Cities. In 2016, staff plans to maintain a progressive Business Retention and Expansion program. We will be meeting with more businesses, completing a job fair and launching our commercial loan program. Staff will also be addressing any other issues that arise during Business Retention and Expansion visits. Fridley HRA Housing Program Summary Cover Page January 7, 2016 HRA Meeting Report Description 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. H:\—Paul's Documents\HRA\HRA Agenda Items�201 G�lanuary 7,2016\Housing Program Cova�.lanuary 7,2016.docx FRIDLEY Loan Summary Report Activity for Period 11/16/15 - 12/15/15 cee�' Center for Energy and Environment Application packets requested/mailed: This period: 0� Year-to-Date: 11 Residential Advisor Visits: This period: �0 Year-to-Date: � Loans currently in process for residents in your City/Neighborhood: �1 Closed Loans This period: Year-to-Date: Fridley Units Units 0 0 Closed End 0.00 0 26,505.00 2 Last Resort 0.00 0 10,000.00 1 Total 0.00 0 36,505.00 3 Leveraged Funds This period: Units Year-to-Date: Units CEE 0.00 0 22,095.00 2 MHFA FUF 11,101.00 1 19,521.00 2 Tota I 11,101.00 1 41,616.00 4 Types of Improvements Financed YTD #of Projects %of Total Types of Properties Financed YTD # %of Total Commercial-Non-residential 1 12.50 Flooring/CarpetlTile 2 16.67 Single Family Residence 7 87.50 Insulation 1 8.33 Kitchens 1 8.33 Lighting 1 8.33 Other Interior Improvements 1 8.33 Plumbing 1 8.33 Siding, Stucco, Exterior Paint 2 16.67 Windows,Doors,Storm Windows,Storn 3 25.00 � � Housing and Redevelopment Authority in and for the City of Fridley NOTICE OF SPECIAL HRA WORK SESSION Notice is hereby given that there will be a special work session of the Housing and Redevelopment Authority in and for the City of Fridley on Thursday January 7, 2016 at 7:45 PM. at the Municipal Center, Conference Room A, 6431 University Avenue, NE, Fridley, MN for the following purposes: 1) Review and discuss guidelines for potential Commercial Loan Program. Any questions related to this item may be referred to PauF Bolin at 763-572- 3591. Hearing impaired persons planning to attend who need an interpreter or other persons with disabilities who require auxiliary aids should contact the City Manager's Office as soon as possible at (763) 572-3500. LAWRENCE R. COMMERS HRA CHAIRPERSON Posted: December 31, 2015 � - j INFORMATIONAL ITEM ; ��,,,� HRA WORKSHOP �.; : � F°� January 7, 2016 Date: December 30, 2016 To: Wally Wysopal, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subiect: Commercial Loan Proaram — Prevailina Wage Exemption At the December 3� HRA workshop, discussing the proposed Commercial Loan -.� Program, Staff suggested that the City's prevailing wage ordinance should be amended to exempt the HRA's proposed commercial loan program. It was not Staff's intent to start�a debate on the merits of prevailing wage requirements. The suggested change was made to make the HRA's commercial loan program requirements consistent with the funding sources it will be paired with and make the program attractive as possible. The Authority loan funds are "gap financing" and will make up a portion of the overall project costs, not to exceed 45% of the financing. In the typical project, the business will need to provide 5 —20%, private bank/ DEED / SBA will provide 50% or more, and- the Authority will provide the balance (up to $150,000). In any loan scenario, the Authority will be one of 3 or more lenders, and the only one to require prevailing wages to be paid (under current ordinance). A simple example of the arrangement is below: XYZ Corporation wants to pave / curb / gutter parking lot to comply with City ordinance and purchase a new widget polisher, allowing them to hire � more emptoyees. The cosf� � of the project is expected to be $120,000. In this scenario, the Authority is loaning 42% . of the funding necessary to complete the project. XYZ Corp—$ 12,000 (10%) SBA - $ 58,000 (48%) � HRA - $ 50,000 (42%) Total $120,000 The prevailing wage ordinance is intended to provide high quality buildings and public works projects and ensure those working on those projects be, "compensated . according to the real value of the services they perform which, for purposes of this Ordinance is defined as the prevailing wage and hours of employment as determined for the City by the Minnesota Department of Labor and Industry"(Fridley Ord. 1315). These requirements are common across the Country and are typically interpreted to mean large public buildings (Fire Stations, Schools, etc.) and public works projects . (Streets, Bridges, etc.). The intent of;these ordinances sometimes conflict with new programs / projects that arise and often end up with exceptions or exemptions being � added to them. The City's existing ordinance contains exceptions for projects under $25,000, for owner occupied housing projects, for smaller rental properties and for residential rehab projects. The prevailing wage requirement, if applied to the proposed commercial loan program, is not likely to allow the City to gain the full benefits of the commercial loan program. There is a feeling amongst small business owners that "prevailing wage" will add cost to their project. Because of that, both the Federal Small Business Administration and the - Minnesota Department of Employment& Economic Development do not require prevailing wages on their business expansion loans. Mike Mulrooney, CMDC President, strongly cautions that we not make our loan program active until/unless the prevailing wage requirement is removed. He believes it will be a deal killer and that businesses will shy away from our program. None of the cities that work with CMDC have prevailing wage requirements on their loan products. Additionally, the Authority would incur expense in hiring a consultant to administer the prevailing wage requirements on our behalf(potentially 10% - 30% or more of loan amount). Both, the City's code enforcement efforts and Business Retention & Expansion program, have identified a real need for assistance to fix up, retain and expand our existing commercial enterprises. Staff strongly believes that each dotlar that can be put into the business helps the community over a long period of time through increased property values, code corrections, community image, and by retaining and creating new jobs. Staff feels these long term benefits to the community warrant excepting the commercial loan program from the prevailing wage ordinance. Staff is recommending an addition to City Ordinance Number 1315. The specific change is as follows: Subdivision 3. Exceptions. This ordinance shall not apply to the following circumstances: e. Any commercial loan program adopted by the Housing and Redevelopment Authority. Staff is not asking the Authority to take action on this issue, at this time. Staff would like to hold an informal work session after the Authority's regular meeting on January 7�' and answer/address any questions and concems you may have regarding the proposed exception to the City's prevailing wage ordinance. ORDINANCE NO. �315 ' AN ORDINANCE OF THE CITY OF FRIDLEY,MINNESOTA,AMENDING CITY ORDINANCE N0.1095,THE PREVAILING HOURS OF LABOR AND PREVAILING WAGE RATE ON CERTAIN PROJECTS FOR OR W1TH THE CITY The City Council of the City of Fridley does ordain as follows: Subdivision l.Legislafive Findings.The City of Fridley finds it to be in the best interest of its citizens that buildings and public works projects constructed with City funds be constructed and maintained by the best means and highest quality of labor reasonably available. That persons working under contract on buildings and public works constructed in whole or in part with City funds should be compensated according to the real value of the services they perform which,for purposes of this Ordinance,is defined as the prevailing wage and hours of employment as determined for the City by the Minnesota Department of Labor and Industry,pursuant to Minnesota Statutes,Section 177.42,subd.6. Subdivision 2.Prevailing Wage and Hours on Certain City-related or funded Projects. ' a. Wages paid for all work performed by contractors and subcontractors that is financed in whole or in part by funds obtained by bonds issued by the City, including but not limited to Industrial Revenue Bonds, and all projects let after May l, 1997,financed by General Obligation Tax Increment Bonds shall be paid in accordance with the prevailing wage and hourly rate. b. Wages paid for all work performed by contractors and subcontractors on any project let after May l, 1997,that is financed in whole or in part by City funds shall be paid in accordance with the prevailing wage and hourly�ra.te. c. Wages paid for all work performed on any project for a Developer in conjunction with the Developer's development of real property in the City if the Developer purchases said real property from the City for less than its fair market value,or if the City grants or loans money to the Developer for the development of said real property,shall be paid in accordance with the prevailing wage and hourly rate. d. The term"City"shall refer to the City of.Fridley and to all related agencies,including,but not limited to all Housing and.Redevelopment Authorities and Economic Development Authorities created by the City of Fridley. Subdivision 3.Exceptions.This ordinance shall not apply to the following circumstances: a. Any project financed by City funds or bonds authorized by the City as provided in subdivision 2 that has a value of$25,000.00 or less or a value equal to or less than the amount required for sealed bids by Minnesota Statutes,Section 471.345,subd.3. b. Any housing project or program within the City directed to or marketed for owner occupancy. c. Any housing project or program directed at rental units containing eight or fewer units. d. Any residential rehabilitation project regacdless of size,entirely paid for with non-City funds. e. Anv commercial loan aro¢ram adoated bv the Housin¢and Redeveloaroent Authoritv PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 28TH DAY OF APRIL 2014. SCOTT J. LUND,MAYOR ATTEST: DEBRA A. SKOGEN,CITY CLERK Publie Hearing April 14,2014 First Reading April 14,2014 Second Reading April 28,2014 Publication May 9,2014