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HRA 02/04/2016 February 4,2016 HRA Meeting Regular Meeting Agenda 7:00 n.m. Call to arder Roll call Action Items 1. Approval of Expenditures 2. Approval of January 7, 2016, Meeting Minutes 3. Approval of Commercial Loan Program Policy & Guidelines Informational Items 1. Housing Program Update 2. Home & Garden Show Reminder Adj ournment K:\COMMISSION AGENDAS\HRA Commission�2016 HRA\February-2016Agenda Outline.docxK:\COMMISSION AGENDASU-IRA Commission�2016 HRA\February-2016Agenda Outline.docx CITY OF FRIDLEY SIGN-IN SHEET HOUSING 8� REDEVELOPMENT AUTHORITY MEETING - � - � �,1� � � Name and Address Agenda Item of Interest �� .:�, Check Report r ��., �` City of Fridley, MN By Check Number Oate Range: OS/08/2016 -01/15/2016 ��;� �tidl��• . Ve�dor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Bank Code:APBNK-HRA-APBNK-HRA hra-623 FRIDLEY,CITY OF Ol/13/2016 Regular 0.00 65.70 29843 hra-112 ANOKA,COUNTY OF Ol/15/2016 Regular 0.00 9,746.43 29844 hra-1333 MEDTRONIC,INC. O1/15/2016 Regular 0.00 279,772.71 29845 hra-220 BRAUN INTERTEC CORPORATION 01/15/2016 Regular 0.00 14,866.02 29846 hra-311 CENTER FOR ENERGY&ENVIRONMENT Ol/15/2016 Regular D.00 2,525.00 29847 hra-917 ALLEN,IOHN N. 01/15/2016 Regular 0.00 45,260.53 29848 Bank Code APBNK-HRA Summary Payable Payment Payment Type Count Count Discount Payment RegularChecks 8 6 0.00 352,236.39 Manual Checks 0 0 0.00 0.00 Voided Checks 0 0 0.00 0.00 Bank Drafts 0 0 0.00 0.00 EFT's 0 0 0.00 0.00 ___----_ —_ __ _ _ - — ---_---__. --- -- 8 6 0.00 352,236.39 .1J15/2016 12:31:19 PM Page 1 of 2 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION January 7, 2016 Call to Order: Chairperson Commers called the HRA Meeting to order at 7:00 p.m. Roll Call: MEMBERS PRESENT: Lawrence Commers Pat Gabel William Holm Gordon Backlund MEMBERS ABSENT: Stephen Eggert OTHERS PRESENT: Paul Bolin,HRA Assistant Executive Director Wally Wysopal, City Manager Jim Casserly,Development Consultant Jacquel Nissen,HRA Intern ACTION ITEMS: 1. APPROVAL OF EXPENDITURES MOTION by Commissioner Holm to approve the expenditures. Seconded by Commissioner Backlund. UPON A VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2. APPROVAL OF DECEMBER 3, 2015 MEETING MINUTES MOTION by Commissioner Holm to approve the minutes as presented. Seconded by Commissioner Backlund. UPON A VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 3. APPROVAL OF RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES MOTION by Commissioner Gabel to approve the Resolution Designating Official Depositories. Seconded by Commissioner Backlund. UPON A VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY Housing and Redevelopment Authority Commission Meeting of January 7, 2016 2 ' 4. APPROVAL OF RESOLUTION DESIGNATING OFFICIAL NEWSPAPER MOTION by Commissioner Holm to approve the Resolution Designating Official Newspaper of Fridley Sun Focus and Minneapolis Star Tribune. Seconded by Commissioner Gabel. UPON A VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 5. APPROVAL OF RESOLUTION MODIFYING REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 Paul Bolin, HRA Assistant Executive Director, stated that HRA has been reviewing the current loan programs. Currently there lacks a program to assist small business with expansions or improvements. Staff have participated in Business Retention Visits and identified a need/desire for a loan program to assist with building expansions, machinery, code corrections (ADA, etc.). This would keep and increase job base and add value and correct problems. Mr. Bolin said that the HRA has the ability to provide assistance to businesses. For consistency, HRA would want to provide loans in the "Redevelopment Project Area" adding missing commercial and industrial properties and adding the Columbia Arena site (anticipating development). The Statute requires the Planning Commission Review of changes to the "Redevelopment Project Area" and that the change is consistent with the Comp Plan. Mr. Bolin said that staff recommends the Authority approve a resolution, adjusting the boundary of the Redevelopment Project Area. This item was approved by the Planning Commission on December l6, 2015. A Public Hearing and final action is set to take place at the City Council on Monday January 25, 2016. Chairperson Commers asked if by putting the Columbia Arena into the project area if it would have an affect in the future if that area was a TIF district. Mr. Bolin replied that the TIF district would need to be put into the project area. Jim Casserly, Development Consultant, added that a tax increment district can only be created in a project area. MOTION by Commissioner Holm to approve the Resolution Modifying Redevelopment Plan for Redevelopment Project No. 1. Seconded by Commissioner Gabel. UPON A VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS 1. BUSINESS RETENTION & EXPANSION UPDATE—2015 REVIEW „ Housing and Redevelopment Authority Commission Meeting of January 7,2016 3 Jacquel Nissen, HRA Intern, reported that according to our local Fire Marshall, Fridley has approximately 400 businesses. According to MN (DEED) data the businesses aze broken out as follows: Manufacturing-41.4% Trade, Transportation and Utilities-22.2% Education and Health Services-18.1°/a Professional and Business Services-7.8°/a Leisure and Hospitality-4.3% Fiancial-2.6% Public Administration 1.2% Other Businesses-2.4% Businesses like Fridley because: ■ Great Infrastructure: ■ Interstate 694, Highway 65 and University Avenue (Hwy 47) ■ BNSF Rail ■ Northstar commuter rail ■ Close Proximity to Minneapolis/St. Paul ■ More"Businesses Friendly” ■ Close-knit Community(small enough to make a difference, large enough for a lasting economy) Ms. Nissen shared the comparison of average current for lease listings in Minneapolis and Fridley. Fridley Minneapolis Industrial $5.38 sq ftlyear $6.15 sq ftlyear Office $8.98 sq ftlyear $19.25 sq ftlyear Retail $12.33 sq ftJyear $18.16 sq ft/year Currently Fridley employers are struggling to find employees and the hardest to fill are labor intensive jobs and retail jobs. Ms. Nissen noted that other concerns from Businesses include the need for financing improvements to older buildings in our Community, Illegal Dumping in dumpsters, Theft & Graffiti, Outdoor Screening of outdoor storage, Expansion, confused about regulations, Parking lot striping, and some businesses feel as though they don't have a voice. Staff has done the following to address some of the concerns: ■ Changed the electronic sign code to allow messages to be changed as frequently as 8 seconds versus the previous 45 seconds. ■ Featuring businesses on our Community Development Journal Cable TV Show ■ Addressing crime issues by direct intervention with police department ■ Opened up businesses potential for expansion ■ Created an informative quarterly e-newsletter to our businesses Ms. Nissen said to help with the employee search, Fridley will hold a Job Fair in April. Fridley's businesses make many products that have an impact on the world such as: Boring Machine-Airplane counsel surrounds, and pistons for Airbus planes. APG Cash Drawer-Cash drawers for majority of businesses worldwide. . Housing and Redevelopment Authority Commission Meeting of January 7,2016 4 � Brooklvn Tool-Makes parts that contribute to the dairy breeding industry. ConAgra Foods-Makes food, found in 99% of household homes. Brands include: Hunts, Hebrew National, Slim Jim,Reddi Whip,Blue Bonnet, and 42 more. Conart-0nline car auctioneer for insurance companies totaled cars. ECO Finishing-Specialty metal finishing of nuts,bolts, and more. Hvdraulic Snecialtv-Hydraulic Power units that are in markets among many different industries. Internarional Paner-Manufactures paper, cardboard, and other products that are used all over the world. Metal-Tek-One of the largest induction hardening capacities in the upper mid-west Talco-Powder coats medical devices, airplane parts, and much more. Twin Citv EDM-Dental instruments and much more. RAO ManufacturinP-Make tops for propane tanks and air compressor tanks. Ms. Nissen said that staff will continue Developing the Partnership with CMDC to offer financial assistance programs to our businesses. Staff will meet with the rest of our businesses, make return visits to businesses we have akeady visited, keep businesses "in the loop" with our quarterly Business Newsletter and continue the open communication with businesses Commissioner Gabel asked about the business newsletter and if the Authority could have a copy in their packet. Paul Bolin, HRA Assistant Executive Director, replied that the newsletter is in electronic form and could be emailed to the Authority. Commissioner Holm asked of the 400 businesses how many were visited. Ms. Nissen replied about 130-150 businesses. Commissioner Gabel asked how staff decided where to start. Ms. Nissen replied that businesses were picked randomly to get through a broad spectrum. A survey was sent out to the businesses and the surveys that came back were the first ones to visit. Commissioner Gabel noted that it seemed the responses that have been received have been positive. Ms. Nissen replied that some of the businesses that didn't respond, were very busy or already have a good connection with the city. Wally Wysopal, City Manager, noted that the business retention program is very time consuming and it takes a persistent personality to continue to try to get in the door with businesses. The visits have been productive. Chairperson Commers thanked everyone for their assistance in program. 2. HOUSING PROGRAM UPDATE . Housing and Redevelopment Authority Commission Meeting of January 7, 2016 5 Paul Bolin, HRA Assistant Executive Director, reported that in December one loan was issued making 7 year to date; there were a total of three remodeling advisor visits this year and both programs are down from last year. There were eight home energy squad visits making 135 for the year which was up a little from last year. CEE will meet with staff next week to plan for 2016 advertising campaigns. The Home and Garden show is coming up Saturday, February 6`" from 9-3. A1165 vendor spaces are filled for this event. Jim Casserly, Development Consultant, distributed paperwork explaining the project area that expanded that was already approved this evening. This paperwork will go into the planning document. Chairperson Commers asked if this would be attached to the resolution. Mr. Casserly replied no; there is nothing to add and the resolution was adopted. This paperwork will go to City Council. Commissioner Holm noted that the approval of the depository attached resolution isn't quite accurate as it stated that the bank shall be signed by the following 2 individuals; but it should read that it shall be signed by two of the following individuals. MOTION by Commissioner Backlund to incorporate and amend the resolution to reflect that two of the three individuals shall have signature authoriry. Seconded by Commissioner Gabel. Mr. Wysopal announced that Finance Director, Darin Nelson, has resigned from the City of Fridley and has taken a job with the City of Shakopee. The city is in the process of finding a replacement. ADJOURNMENT MOTION by Commissioner Gabel to adjourn. Seconded by Commissioner Backlund. UPON A VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND T�-IE MEETING ADJOURNED AT 7:33 P.M. Respectfully Submitted, Krista Peterson Recording Secretary � j ACTION ITEM _ � HRA MEETING Fndley FEBRUARY 4, 2016 Date: January 28, 2016 To: Wally Wysopal, Executive Direct From: Paul Bolin, Asst. Executive HRA Director Subiect• Creation of Commercia! Loan Proqram At the December 3�d and January 7th HRA work sessions, discussing the proposed � Commercia! Loan Program, Staff suggested exempting the program from the City & HRA's prevailing wage requirements. The exemption was suggested to make the HRA's commercial loan program requirements consistent with the funding sources it will be paired with and make the program attractive so as to reta+n and expand permanent jobs, increase tax base and improve Fridley's image. The January 7th HRA work session led Staff to bring the prevailing wage ordinance change to the City Counci! on .lanuary 25th. The Council held a public hearing on the ordinance change that would make an exception to the prevai{ing wage requirement for -� "Any commercial loan program adopted by the Housing and Redevelopment Authority". Councilmembers asked a number of questions about the loan program itself, as well as the impact of the prevailing wage ordinance on the proposed loan program. The Councilmembers voiced support for the loan program and making changes needed to make the program successful. There were three residents, in attendance, which spoke to the issue. The residents wanted assurance that this wasn't going to be the start of � an effort to rid the City of the prevai{ing wage. They wanted a limit put on the amount of the loans to be exempt. The Council and residents seemed to reach some informal consensus on exempting commercial loans of$150,000 or fess. The City Council voted to continue the public hearing until February 8th and asked that the Authority confirm that the upper limit on the commercial loan program is $150,000 as proposed in the draft policy and guidefines (attached) reviewed by the Authority in December. The Counci{ would like the Authority to adopt the guidelines, so that they have confirmation that exemptions on commercial loans for $150,000 or less is acceptable to the Authority, before they close the public hearing and act on the _ prevai{ing wage ordinance. One minor change was made to the draft commercia{ loan policy and guidelines, to reflect the proposed change, and to clarify that only commercial loans of $150,000 or less are exempt from City and HRA Prevailing Wage requirements. The change was simply to add the following under the general terms and conditions of the proposed commercial revolving loan fund: Prevailinq Waqe� The HRA's prevailinp waqe Resolution No. 13-1997 shall not be applicable. Staff recommends that the Authority adopt the attached resolution, including the policy and guidelines, to establish the HRA's Commercial Revolving Loan Program. Mike Mulrooney from CMDC and Staff will be available to answer questions at next weeks meeting. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION HRA 2016- A RESOLUTION ADOPTING A COMMERCIAL LOAN PROGRAM 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 adopt a commercial loan program, specificatly a Revolving Loan Fund (the "RLF") to provide for the making of commercial Ioans funded by the Authority in the City of Fridley. Section 2. Findings. 2.01. The Authority finds that it has adopted its Redevelopment Plan (the "Redevelopment Plan") for its Redevelopment Project No. 1 (the "Project Area") pursuant to and in accordance with Minnesota Statutes Sections 469.001 to 469.047, inclusive, as amended and supplemented from time to time (the "Act"). 2.02. The Authority hereby finds that the RLF will assist in the preservation, maintenance, development and redevelopment of the City's commercial areas and further finds that accomplishing this is a public purpose as described in the Redevelopment Plan. 2.03. The Authority hereby finds that to accomplish the goals of the RLF it needs to (i) stimulate private sector investment in manufacturing and related equipment and other commercial facilities in order to create new jobs, boost productivity and retain existing jobs for local residents; (ii) encourage investment in the expansion and/or rehabilitation of commerciai and retail buildings in order to maintain the economic viability of the City and more specifically in the Project Area; (iii) provide low interest, long term (i.e. greater than one year) {oans as incentives for new industrial and commercial development within the City; and (iv) to provide "gap financing" to encourage commercial and retail business owners in the Project Area to rehabilitate their existing buildings. Section 3. Adoption of Program. 3.01. The Authority hereby adopts the Revolving Loan Fund as follows: (i) Schedule A to this Resolution titled "Revolving Loan Fund" is hereby approved and adopted. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS DAY OF , 2016. Lawrence R. Commers, Chairperson ATTESTED: Waiter T. Wysopal, Executive Director MMB:4826-8400-4908,v. 1 I I 2 SCHEDULE A TO HRA RESOLUTION NO. 2016- REVOLVING LOAN FUND POLICY & GUIDELINES 1. LOAN PROGRAM The general terms and conditions for the Revolving Loan Fund are the following: Amount: From $50,000 to $150,000 of financing but not to exceed 45°l0 of the project cost. Equity: Must have private-sector commitments for 50% of the project cost. Borrower must provide 5% or more of project financing. Rate: Fixed; 2 points below the lowest prime rate published in the Wall Street Journal the day the loan is funded, or 4%, whichever is greater. Uses: Fixed Asset Financing Term: The term of the financing will be commensurate with the life of the asset being financed. In general, real estate can be financed for up to 20 years. Equipment can be financed up to 10 years. Prevailing The HRA's prevailing wage Resolution No. 13-1997 shall not be Wage: applicable. 2. GENERAL USES Businesses must use RLF foans for sound business purposes. A. Permitted RLF Uses: • Building construction • Land an building acquisition • Machinery and Equipment • Renovation and modernization of commercial buildings, including signage • Site Improvements • Investment real estate with a minimum of 50% of the space pre-leased ' B. Ineligible RLF Uses: • Developer �ees • Management Fees • Franchise Fees • Moving Expenses • Working capital • Refinancing of existing debt • Inventory • Costs not directly attributable and necessary for the Project 1 • Third-Party Loan fees (commitment, broker, finders, origination, processing fees of permanent financing). • Rolling Stock 3. HOW RLF FINANCING WORKS A business may apply for RLF financing through the HRA. Usually, a Project requires interim financing from an interim lender (often the same lender that later provides a portion of the permanent financing). Generally, permanent financing of the Project consists of: • A contribution by the sma!{ business in an amount of at {east 5 percent of the Project costs; • A loan made with the proceeds of RLF for up to 45 percent of the Project costs and certain administrative costs, collateralized by a junior lien on the Project Property; and • A Third Party Loan comprising the balance of the financing, collateralized by a first lien on the Project property. 4. BUSINESSES ELIGIBILITY A{1 projects located or proposed to be located in the designated HRA Redevelopment Plan Project Area must meet the following eligibility criteria: • Unless otherwise stated, business must be a for-profit corporation; partnership, or sole proprietorship. • Business must be a small business as defined by the Small Business Administration (SBA). • Business must have a positive net worth. 5. LOAN SECURITY AND GUARANTEES Appficants must be able to secure the loan by providing the HRA with a minimum of a subordinate fien position upon the buifding and/or assets or other approved colfateral. , • Applicant must demonstrate the financial means to repay the loans, as determined by the HRA. • Whenever possible, personal guarantees will be made part of any loan agreement. • Key person life insurance may be required as determined by the HRA Finance Committee based on loan amount and company ownership. 6. CREDIT CRITERIA FOR RLF LOANS The appficant (including an Operating Company) must be creditworthy. Loans must be so sound as to reasonably assure repayment. The HRA will consider: • Character, reputation, and credit history of the applicant and the Operating Company, if applicable), its associates, and guarantors; • Experience and depth of management; 2 • Strength of the business; • Past earnings, projected cash flow, and future prospects; • Ability to repay the loan with earnings from the business; • Sufficient invested equity to operate on a sound financial basis; • Potential for long-term success; • Nature and value of collateral (although inadequate collateral will not be the sole reason for denial of a loan request); and • The effect any affiliates may have on the ultimate repayment ability of the applicant. 7. LOAN CONDITIONS The following requirements are normally required by the HRA for all business loans: • Personal guarantees. Holders of at least a 20 percent ownership interest generally must guarantee the loan. The HRA, in its discretion, consulting with the Participating Lender, may require other appropriate individuals to guarantee the loan as well, except the HRA will not require personal guarantees from those holding less than 5% ownership. • Appraisals. The HRA may require professional appraisals of the applicant's and principals' assets, a survey, or a feasibility study. • Hazard/nsurance. The HRA requires hazard insurance on all collateral. • Taxes. The applicant may not use any of the proceeds to pay past-due Federal, state or local taxes. 8. THE CONTENTS OF A RLF LOAN APPLICATION For most business loans, the HRA requires that an application for a business loan contain, among other things, a description of the history and nature of the business, the amount and purpose of the loan, the collateral offered for the loan, current financial statements, historical financial statements (or tax returns if appropriate) for the past three years, IRS tax verification, and a business plan, when applicable. Personal histories and financial statements will be required from principals of the applicant (and the Operating Company, if applicable). 9. APPROVAL OR DENIAL Applicants receive notice of approval or denial by the HRA. Notice of denial will include the reasons. If a loan is approved, an approval letter witl be issued. 10. PROJECT ECONOMIC DEVELOPMENT GOALS Required Objectives A Project must achieve at least one of the economic development objectives established by the HRA: job creation or retention; or other economic and community development objectives. A project that achieves any of the following community development or public policy goals is eligible. Loan applications must indicate how the Project will meet the specifiEd economic development objective. 3 A. Community Devefopment goals: • Improving, diversifying or stabilizing the economy of the City of�ridley; • Stimulating other business development; • Bringing new income into the community; • Assisting manufacturing firms (North American Industry Classification System (NAICS), Sectors 31 -33); or B. Public Policy goals: • Revitalizing the HRA Project Area; • Expansion of exports; • Expansion of small businesses owned and controlled by women • Expansion of small businesses owned and controlled by veterans • Expansion of minority enterprise development • Increasing productivity and competitiveness (retooling, robotics. modernization, competition with imports); • Modernizing or upgrading facilities to meet energy, health, safety, and environmental requirements. 11. SOURCES OF PERMANENT FINANCING Permanent financing for each Project must come from three sources: the Borrower's contribution, Third-Party Loans, and the RLF Ioan. Typically, the Borrower contributes 5 to 20 percent of the permanent financing, Third-Party Loans 50 percent or more and the RLF loan 45 percent or less. 12. BORROWER CONTRIBUTIONS The Borrower must contribute to the Project cash (or property acceptable to the HRA obtained with the cash) or land (that is part of the Project Property), in an amount equal to the following percentage of the Project cost, excluding administrative costs: A. At least 15 percent, if the Borrower (or Operating Company if the Borrower is an Eligible Passive Company) has operated for two years or less; B. At least 15 percent, if the Project involves the acquisition, construction, conversion, or expansion of a limited or singls purpose building or structure; C. At least 20 percent, if the Project involves conditions described in paragraphs (a)(1) and (2) of this section; or D. At least 5 percent, in all other circumstances. 13. RLF LENDING LIMITS Generally, an RLF loan shall be between $50,000 and $150,000 but not to exceed 45°/a of the total project cost. 4 14. COLLATERAL The HRA usually takes a junior lien position on the Project Property to secure the RLF loan. Sometimes additional collateral is required. (In rare circumstances, the HRA may permit other collateral substituted for Project Property.) All collateral must be insured against such hazards and risks as HRA may require, with provisions for notice to the HRA in the event of impending lapse of coverage. 15. DEPOSIT FROM THE BORROWER At the time of application for a RLF {oan, the HRA shall require a deposit from the Borrower of $1,500 or 1.5 percent of the loan amount whichever is greater. The deposit will be applied to the loan processing fee. If the small business withdraws its application, the HRA may deduct from the deposit reasonable costs incurred in packaging and processing the application. 16. FEES PAID BY BORROWER A. Processing fee. The HRA may charge up to 1.5 percent of the net loan proceeds to process the loan request; B. Closing fee. The HRA may charge a reasonable closing fee sufficient to reimburse it for the expenses of its in-house or outside legal counsel, and other miscellaneous closing costs (HRA Closing Fee). Some closing costs may be funded out of the Ioan proceeds; C. Servicing fee. CMDC will charge a monthly servicing fee of 0.5 percent per annum on the unpaid balance of the loan. The servicing fee may be paid only from loan payments received. D. Late fees. Loan payments received after the 15th of each month may be subject to a late payment fee of 5 percent of the late payment or $100, whichever is greater. These fees wil{ be collected by CMDC on behatf of the HRA; and E. Assumption fee. Upon HRA written approval, CMDC may charge an assumption fee not to exceed 1 percent of the outstanding principal balance of the toan being assumed. 17. TIMING OF PROJECT EXPENSES No project should commence until the HRA has approved the loan application. Any costs incurred prior to the approval of the loan application are generally not eligible expenditures. No bui4ding construction shall commence until the required city permits are secured. The applicant will be responsible for all legal, recording, and other fees required for protection of a security interest in the loan, payable by the processing fee, which is paid at the time of application. In addition to the processing fee, all legal and filing fees shall be paid by the borrower at loan closing. 5 18. PROCEDURAL GUlDELINES FOR APPLICATION AND APPR�YAL A. All applicants shall first contact a primary lending institution to determine if additional equity is needed, and if so, how much. B. The applicant and the primary lender shall then meet with HRA staff to obtain information about the RLF program, discuss the project, and obtain application forms. C. The applicant shall complete and submit an application form to the HRA Staff, along with a processing fee of 1.5 percent of the loan request or $1,500 whichever is greater. (The fee is used to cover processing expenses and will be returned less expenses only if application is denied.) The applicant must provide evidence of their ability to meet the equity requirements or provide a letter of commitment for conventional financing from the primary lending institution. D. The HRA is a governmental entity and as such must provide public access to certain data it receives. Data deemed by Applicant to be nonpublic data under State law should be so designated or marked by Applicant. See Minnesota Statutes Sections 13.59, Subd. 1. E. The application will be reviewed by the HRA staff to determine if it conforms to all City and HRA policies and ordinances and to consider the following: • The availability and applicability of other governmental grants and/or loan programs. • Whether the proposed project will result in conformance with building and zoning codes. • Whether it is desirous and in the best interests of the public to provide funding for the project. F. With written permission granted by the applicant, the application will be submitted by the HRA Staff to the Central Minnesota Deve{opment Company as advisory consult for staff and HRA Finance Committee. G. The HRA Finance Committee will review each application in terms of its consistency with the goals of the RLF Program as enumerated above 19. HRA FINANCE COMMITTEE The HRA Finance Committee will evaluate the project application in terms of the foliowing: A. Project Design — Evaluation af project design will include review of proposed activities, time lines and a capacity to imptement. B, Financial Feasibility — Availability of funds, private involvement, financial packaging and cost effectiveness. • Appropriate ratio of private funds to RLF funds. 6 • Sufficient cash flow to cover proposed debt service as demonstrated by financial statements and projections. • Ability to demonstrate a positive net warth. • Letter of Commitment from applicant pledging to complete the project during proposed project duration, if the loan application is approved. • Letter of Commitment from other financing sources stating terms and conditions of their participation in the project if applicable. 20. SUFFICIENT COLLATERAL • All other information as required in the application and/or additional information as may be requested by the HRA. • Project compliance with all City codes and policies. • The HRA Finance Committee will recommend the approval, denia{, or request a resubmission. A recommendation from the Finance Committee will be forwarded to the HRA for final action. 21. RIGHT OF REFUSAL The HRA may deny any project which it deems inappropriate according to the guidelines estabiished in this document. 22. SERVICING OF RLF LOANS Central Minnesota Development Company (CMDC) will provide loan servicing in accordance with these Policies and Guidelines. MMB:4817-5562-7820,v. 1 7 Fridley HRA Housing Program Summary Cover Page February 4, 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�E3RA�HRA Agenda Items�2016�February 4,2016\Housing Program CoverFebruary 4,2016.docx FRIDLEY Loan Summary Report Activity for Period 12/16/15-1115116 cee�' Center for Energy and Environment Application packets requested/mailed: This period: � Year-to-Date: � Residential Advisor Visits: This period: � Year-to-Date: � Loans currently in process for residents in your City/Neighborhood: � Closed Loans This period: Year-to-Date: Fridley Units Units 0 � Closed End 0.00 0 0.00 � 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 � Total 0 0 Types of Improvements Financed YTD #of Projects %of Total Types of Properties Financed YTD # %of Total � � �� , 1 I I � .:. � � � �� , � ,_, � . . , � ` �- .., , . ; u , . . :� t-. � � �.. � , � �- .v � ' � � � ; , � � � Saturday, February 6, 2016 at NSC's Sport Expo Center 9:00 am until 3:00 pm ♦ 1740 105th Avenue Northeast, Blaine, Minnesota Sponsored by the Cities of Blaine ♦ Columbia Heights ♦ Fridley ♦ Mounds View Show Sponsor The Kris Lindahl Team — RE/MAX Results K�,R� �� and Vendor Co-Sponsors HpM��G��K:DI�l'1i • Scherer Window 8� Door Consultants • Trio Landscaping • MetroNorth Chamber of Commerce • Peterson Companies Inc. ��' • Great Lakes Window& Siding � Nowthen Nursery • Black Cat Lawn & Landscape � Quanre Contracting • Wells Fargo Home Mortgage • TJB Homes, Inc. Bring the Whole Family - There's Something for Everyone! Our Show is Bigger and Better Than Ever! Kids Activity Center ► Great venue-everything in one room, with lots of fun crafts, and a on one level Face Painter from 9:00-3:00 ► Longer hours -9:00 am to 3:00 pm � °�, Concession Stand ► Educational and Informative Seminars Grab a quick lunch! (See our website for times and complete descriptions.� � ' Sponsor Treasure Hunt au . Our Community�ponsored Show Features: Visit all of our Co-Sponsors ,,. ► Local specialists providing everything you and enter a special drawing need, including inspiration and financing, for for a $100 Visa gift card! remodeling or improving your home and yard ► Great Door Prizes and Plenty of Free Parking Fir�d us c�n Faceboak Questions? Contact Marsha Wagner, 612-338-2122, email infoCcr�northmetrohomeandaarden com or call one of the following Planning Committee Members: Matt Prebil Elizabeth Holmbeck Pau!Bolin Graig Swalchick G�y c��#�►r�e C�ty c�Ccrl�i��i�ig� C��c�f Fri�ley Cr�y t��c�ac�,is Vtevu �� ,� � ��Z�� _� ,� � F� ,� ,:E � ��'� � ,; x �_ ,� ° � �;� "� � �=' �.'� ��'r.. � ,�`� �-��'. ��;�y ,.,�,� � r ., > � '�� ` i � r M . t ° .R ��'�1' !` �+ �': `� �`;�a�l�l��#�� .. 1 . . . _. . . . . . .. _ .. . ... _...,. . . ,. H0�1i �_ 1 r � � , i e,�� iR�� ' i.' � ��"��.��i ,A��#:.}ti: y Home �botYt Sponsors Ea:l�i'�rttors Fea�ures searen... Seminars-2016 _ _. _ __ _ _ _ _ Thenk you to our eem(nar presenters tor these great seminarsl Tlme Topic/Preseatar/Descrtption 9:30-10:20 ThA Rsalky of Rul Estate—2078 5erah Pickens,The Krls Clndahi Team-RFJMAX ResWts The reai estete market is a constently evoNing entity and tl�e joumey to buying or sett'mg your home has become more compiiceted than ever.Join us Tor Insights a�advlce on how W nevipate the current market condllions,maxlmtzing your home value,and utNiang tl�e intemet to your advantage.We want to take the time make you an educated consumar whether you are resdy to enter the marfcet now or In 5 years.This inform8tive preseirtatbn�perfed for everyone—from a flrst tlme home buyer to tt►e experienced selbr. Seieh Pickens has been inwhred!n the ree/estate wa/d since fhe aqe of 19. Widi 15 years of industry experience and 12 ysars o� be/ng a Acensed agent ahe has experlenced e►rery poss/ble a/tuadon and market condlHon,meldng her an Invafuab/e v�ult of know/edpe for her dlenfs and team,and dhe top producing agent of The Kris Lindahl Team.In 2015 Kris and Sarah staRed The Kris Lindah/Teem—RFJMAX Resulfe,and together they leed d►e team with the same core ve/ues ihat they buNt theii buslneas on. 10:30-11:20 Weed YVhacking 101—8ustalna6l�Wesd Control Paetlws tor rour lswn Kim Suqlvan,University of Minnesota Extension Servka-Master GaNener Progrsm Moka Cour►ty We wiA bok at why weeds suxeed and how W fend them off—using mosUy naturel products with some minimal-use chemical treatment opdons. K!m Su�n has been a Master Gardener sh►ce 2002 wTd►apecia!Interests in ausdafnabfe lawn and tree care and salad tsb/e gaNens.She nrorked for the Unlverslly of Minnesota for twn years as a research asxl�ant study/ng agaMc wsed control,and enpys bans/ating technka/researGh Tnto uaer-fiend/y informadon. 11:30-12:20 2016 Color Trends Abi Zechmelster,Co/or Progrem Supervlaor,The She►tiv�►h�Jams Company If you're ready to update your home,you donY want to mfss this sessbn.Abl Zechmeister,Cobr Progrem SupeMsor with 3herwin Wflliams,wil review 2016 cobr trends,high5ghting the cobrs in four uniquey themed coNections.She wip visually show the colorsh�lledbns and discuss how you can�corporata trend cobrs into your e�cistlng(umishings and daoor.The session also w1i1 include oolor/sheen suggesdons for different areas,things to consider when selecting oolors,etc.Bring�your decoratlng ideas and discuss tt�em with an e�ert! Abl Zacl►meister hes wiorked wltl►She►wln WNliams Des)gn Team slnce 2008.She has explor�d many ve►red areas of/nterior Design ir►dudMg FabNc Show Rooms,Fumiture,and Paint Color has eM+ays been a dmer fnr her and h6�deseqnl Co/or impeds us evary�ngle day,and IPs en emofbne//oumsy tnat at tlmes can 6e dFfRcult but ft has been her career goal!o he/p take thaf stress away and make cobr fun agaM! 12:30-1:20 Square Foot(iardeniny IOm Su9lven,Unhrersky of MMnesote Extension Servk:e-Maater Ga�dener Progrem-Moke Coumy Are you one of the many peopie who bve to gerden but have Iimited spaoe to do so?I�m Sullhren,Master Gardener,wlll share the basica of lhis exdling new trend and show you how you can grow your ovm vegetables and omamentals in a small space. Klm SulHvan has been a Master Gerdener atnce 2002 with spectal fnterests in austatnable lawn and tree care end ae�ad tab�e gardens.She arortced for the Universlty of Minnesote for Mro y�ears as a research asaletant study(ng orpanic weed conbol,and enpys hsnslatlng technkei researCh lnto uaer-fifendty iniormatlon. 1:30-2:20 Your Blusprint for Clssn Water at Home Jesska Bromeikamp,Rke Creek Wate►g/►ed D/strlct,•Miche/e Ross and Tammy SchmHz,M/ssisslppi Watershed Management Oiganization Presenters wiil discuss a varlety of personal actlons,lendscape optiona,and other steps to creating a beautiful yard that is healfhler for you,for creatures we enJoy and for the water we drink. Je�Brome/kamp has extensfire experien�de►rebpinp and imp/emenSng action-oriented environmenta/programs 1br youth, educators,and ths genere/publk to proted our water reaouroes. Mlchele Ross has wnrked wlth stete and loca!govemments to provide program and proJect menagement for natural resowce protecHon and currently coordlnatea water qualHy tralnings and acUvltles. Temmy Schmifz has provided communicaBons services for locel go►remment,non-profits and schools and now shares resources to bulld community re/ationahlps fhat profect water. Showing 1 to 5 of 5 entries Fallc�tir us on I'acebnok! Loca�ian Contact Us HrC Spurt Ezpa GenSer �IlRarsha IM1Facizer North Metro Home&Garde... 1740 1Q5:h kvenue NE Sho4v Cacrdmato� �uw� 6iaine.N�'5544U Phane�612-33�-2122 Map Email us LNu P�p� Slnn i Sgonsoring Cities � �..�� j OOiUi�181�1 _��l/utc!�fit � J..[7 ►IEItiF1I5 v:t��q;� � ,o��y", , f.t��f� �.otth K3r ,. ,�. ��.Y�Hntn�f�.a;�8�.St,o'+.' . s