HRA 03/03/2016 T �i� l �
+«
March 3,2016
HRA Meeting
Regular Meeting Agenda
7•00 p.m.
Call to order
Roll call
Action Items
1. Approval of Expenditures
2. Approval of February 4, 2016, Meeting Minutes
3. Approval of Resolution Supporting MCRLF Application—Northern Stacks
4. Approval of 2016 Mowing Contract
Informational Items
1. Housing Program Update
Adj ournment
K:\COMMISSION AGENDAS\HRA Commission�2016 HRA\March-2016Agenda Outline.docxK:\COMMISSION AGENDAS\HRA
Commission�2016 HRA\March-2016Agenda Outline.docx
�:�,.�� Check Report
�' City of Fridley, MN By Check Number
Date Range: 02/08/2016 -02/12/2016
: ��ricitev
Vendor Number Vendor Name Payment Date Payme�t Type Discount Amount Payment Amount Number
Bank Code:APBNK-HRA-APBNK-HRA
hra-302 AMERICAN PLANNING ASSOCIATION 02/10/2016 Regular 0.00 465.00 29852
hra-1113 MONROE MOXNESS BERG PA 02/1OJ2016 Regular 0.00 5,226.15 29853
hra-112 ANOKA,COUNTY OF 02/10/2016 Regular 0.00 10,372.16 29854
hra-128 ADVANTAGE SIGNS&GRAPHICS,INC. 02/10/2016 Regular 0.00 222.25 29855
hra-238 BUST OUT SOLUTIONS 02/10/2016 Regular 0.00 52.45 29856
hra-3�6 CASTIEVIS10N5 02j10/2016 Regular 0.00 5,066.20 29857
hra-501 E.C.M.PUBLISHERS,INC. 02/10/2016 Regular �.�� 2,083.00 29858
hra-501 E.C.M.PUBLISHERS,INC. 02/10/2016 Regular 0.00 50.85 29859
hra-623 FRIDLEY,CITY OF 02/10/2016 Regular 0.00 65.70 29860
Bank Code APBNK-HRA Summary
Payable Payment
PaymentType Count Cou�t Discount Payment
Regular Checks 11 9 0.00 23,603.76
Manual Checks 0 0 0.00 0.00 �
Voided Checks 0 0 O.UO 0.00
Bank Drafts 0 0 0.00 0.00
EFT'S 0 0 0.00 0.00
_._-----.__ ___ _ _ _ _-__ _ ___-----
11 9 0.00 23,603.76
2J10/2016 10:35:26 AM Par,e 1 of Z
CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION
February 4,2016
Call to Order:
Chairperson Pro Tem Gabel called the HRA Meeting to order at 7:00 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
Wally Wysopal, City Manager
ACTION ITEMS:
1. AP'PROVAL 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 JANUARY 7, 2016 MEETING MINUTES
Chairperson Pro Tem Gabel noted on page 3 "financial"is misspelled in the first paragraph.
MOTION by Commissioner Holm to approve the minutes as amended. Seconded by
Commissioner Backlund.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY
3. APPROVAL OF COMMERCIAL LOAN PROGRAM POLICY & GUIDELINES
Paul Bolin, HRA Assistant Executive Director, stated that the purpose of this program is to
stimulate private investment to create new jobs, boost productivity, retain jobs, encourage
expansion and rehabilitate buildings to maintain the economic viability of the City. The uses of
the loans could be for machinery and equipment, building construction, land and building
acquisition,renovation and modernization, signage or site improvements.
Housing and Redevelopment Authority Commission Meeting of February 4,2016 2 `
Mr. Bolin said that the program goals of the loan funds must help the City achieve the following
goals:
• Job creation or retention
• Improve, diversify, stabilize Fridley economy
• Stimulate other business development
• Bring new income into Fridley
• Assist manufacturing firms
• Revitalize HRA proj ect area
• Expand exports
• Expand business owned by women, veterans, minorities
• Increase productivity and competiveness
• Modernize &upgrade
Mr. Bolin reviewed that City Council held a public hearing on January 25"' and the public
hearing was continued until February 8th. City Council proposed a language change. The
language is as follows:
e Anv commercial loan program ado�ted bv the Housin�and Redevelopment Authoritv
providing a loan does not exceed$1 S0,000.
Council would like HRA to confirm loans are capped at $150,000 prior to amending the
ordinance and adopting the resolution in the packet does that. The RLF General Terms are as
follows:
Amount: $50,000 - $150,000—not to exceed 45% of pc
Equity: Private sector—50% ; Borrower—5%or more
Rate: Fixed; 2pts below prime (WSJ) or 4%
Uses: Fixed assets
Term: Generally 10 yrs for equipment;20 yrs real estate
Prevailing Wage: The HRA's prevailing wage Resolution No.13-1997 shall not be
applicable
Mr. Bolin stated that the HRA Committee will evaluate the project in terms of:
Project design—review of activities, time line and capacity to implement
Financial feasibility — availability of funds, private involvement, financial packaging &
cost effectiveness
Ratio of private funds to RLF
Cash flow to cover debt service
Positive net worth
LOC from applicant—proj ect completion
LOC from other financing sources—terms &conditions
Sufficient capital
Compliance with City codes and policies
The HR.A Finance Committee will recommend approval, denial, or request a resubmission. A
recommendation will be forwarded to the HRA for final action.
Mr. Bolin said that CMDC will service loans on behalf of the HRA. CNIDC is responsible for
routine servicing, including:
Review of borrowers annual financial statements
- Housing and Redevelopment Authority Commission Meeting of February 4, 2016 3
Monitoring status of borrower and RLF collateral
Assuring borrower ma.kes insurance premium payments and pays all t�es when
due
Filing renewals and extensions of security interests
Responding to requests for loan modifications
Notify HR.A when loan is more than 3 months past due
Work with HRA to cure defaults and initiate workouts.
Staff recommends approval of the resolution "Adopting a Commercial Loan Program", including
the attached Schedule A, "Policy& Guidelines". The proposed loan program provides long term
benefits through increased property values, retaining existing jobs, creating new jobs, and
improving the appearance of the City's commercial and industrial properties.
Commissioner Backlund asked on page six, schedule A if the Sth line should be bolded.
Mr. Bo�in replied no.
Commissioner Backlund asked if the HRA Finance Committee is defined anywhere else in
documentation or if is this is the first time this has come up.
Mr. Bolin replied that this term is a group the Authority can define at any time; the purpose of
that group is to review the loans.
Chairperson Pro Tem Gabel added that the Authority has never had a subgroup of any kind in
the past.
Commissioner Backlund thought that if a subgroup would be used at some point in time it
should be defined somewhere in the structure.
Commissioner Holm said that there will be exceptions and asked what would happen if there
was an excellent opportunity for a loan of$175,000 and it exceeds the maximum amount. He
asked if there would be any way to pursue this loan or would the Authority just say no, we can``t
accommodate that loan.
Mr. Bolin replied that is a concern staff have with putting a cap on this loan program. There
may be a loan request for $175,000 and at that point we could keep our share at $150,000 and
they would finance the rest somewhere else. The only way to loan money above the $150,000
would be to go back to City Council to change the dollar amount exempted from prevailing
wage, or to require prevailing wage on this particular loan.
Chairperson Pro Tem Gabel asked if other cities had caps on their loans.
Mr. Bolin stated that the Authority has the ability to loan any amount they want but the
guidelines are $150,000. A decision could be made to authorize $175,000 for a project loan.
The prevailing wage ordinance would kick in on a larger loan unless it went back to Council to
raise the limit.
Commissioner Holm asked if a loan was for purchasing new automated equipment for $175,000
where there is no wage issue if the Authority could do that.
Housing and Redevelopment Authority Commission Meeting of February 4, 2016 4 -
Mr. Bolin replied that the state of Minnesota does keep a separate pool of money from the
federal government that does have prevailing wage requirements attached to it. Those funds are
in a separate pool that is used for machinery loans.
Chairperson Pro Tem Gabel said that these are smail business loans as they are defined; we
have not discussed if the loan request would be above $150,000.
Commissioner Backlund thought the Authority could approve this but in subsequent time the
Authority and staff should research contingencies that fall outside of the rules and how to deal
with it.
Chairperson Pro Tem Gabel thought to protect the prevailing wage the wording "providing the
loan doesn't exceed $150,000" should be added. If larger loans are requested the Authority will
have to look at a different program.
Commissioner Eggert noted that each community is different; he asked what the experience
was of larger loans.
Mike Mulrooney confirmed that every community is different and some loans are $200,000-
250,000. Different sources can be brought to the table to package different financing scenarios.
Some will have private financing along with local community based financing. Communities
can bring requests before the Authority and ask for exceptions to the policy and that is not
uncommon.
Chairperson Pro Tem Gabel thought this sounded like a reasonable place to start. She noted
that may, shall and should are used and thought the document should be more consistent. Sh�
asked on page 5,number 15, if"should"be changed to "shall".
Commissioner Holm thought that there may be extenuating circumstances where someone may
withdraw their loan application and there should be some flexibility there.
Commissioner Backlund added like if there were a tornado.
Chairperson Pro Tem Gabel asked if in that situation the Authority should bear the cost.
Commissioner Holm noted that it may not be the borrower's fault that the application is being
withdrawn.
Commissioner Eggert agreed that sometimes it could be related to circumstances.
Chairperson Pro Tem Gabel noted on#1 A, "land/and"is missing the"d".
MOTION by Commissioner Backlund to approve the Commercial Loan Program Policy and
Guidelines as amended. Seconded by Commissioner Eggert.
Commissioner Holm asked if this would satisfy Council's request.
' Housing and Redevelopment Authority Commission Meeting of February 4, 2016 5
Mr. Bolin replied yes, it spells out the maximum loan amount and the addition to the prevailing
wage.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL
DECLARED THE MOTION CARRIED UNANIMOUSLY
INFORMATIONAL ITEMS
1. HOUSING PROGRAM UPDATE
Paul Bolin, HRA Assistant Executive Director, reported no loans went out for January, there
was one remodel advisor visit and 10 Home Energy Squad visits.
2. HOME & GARDEN SHOW REMINDER
Paul Bolin, HRA Assistant Executive Director, announced that on February 6ih the Home &
Garden Show will be at the NSC Sport Expo from 9:00 a.m. to 3:00 p.m. 75 vendors are booked
and there will be kid's activities and seminars.
ADJOURNMENT
MOTION by Commissioner Backlund to adjourn. Seconded by Commissioner Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL
DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 7:43
P.M.
Respectfully Submitted,
Krista Peterson
Recording Secretary
�,■,. ACTION ITEM
�,.�
�` `:°`°�� HRA MEETING OF MARCH 3, 2016
DATE: February 26, 2016
TO: Wally Wysopal, City Manager
FROM: Paul Bolin, Assistant Executive HRA Director
SUBJECT: MN DEED MCRLF Loan Application — Resolution of Support
INTRODUCTION
Hyde Development has requested the Authority's support in obtaining a low
interest loan through the Minnesota Department of Employment and Economic
Development's "Cleanup Revolving Loan Fund" (MCRLF) program. Hyde
Development is seeking approximately $2,000,000 from this loan source.
DEED's MCRLF program allows developers to borrow money for cleanup,
cleanup related sampling and monitoring. Cleanup includes, but is not limited to,
removal and disposal of contaminated soils, installation of vapor barriers and �T
groundwater treatment.
Unlike some of DEED's grant programs, where the HRA was the applicant and
recipient of the funds, the MCRLF is able to provide the funds directly to Hyde
Development. The attached resolution is simply a show of support for Mr. Hyde's
efforts to obtain this low interest loan. Mr. Hyde will be at the meeting next week
to provide a project update and answer questions about this particular loan
application.
RECOMMENDATION
Staff recommends approval of the attached resolution supporting Hyde
Development's application for a grant through DEED's Minnesota Cleanup
Revolving Loan Fund.
HRA RESOLUTION 2016-
RESOLUTION SUPPORTING APPLICATION TO MN DEPARTMENT OF
EMPLOYMENT AND ECONOMIC DEVELOPMENT (DEED) FOR MINNESOTA
CLEANUP REVOLVING LOAN FUND (MCRLF� FOR THE NORTHERN STACKS
REDEVELOPMENT
WHEREAS Hyde Development has purchased the Northern Stacks Site, formerly BAE, located
at 4800 East River Road and has made substantial progress towards the industrial clean up and
redevelopment of this property; and
WHEREAS the 122 acre site is still heavily contaminated with pollution and the proposed uses
of the requested funds are consistent with goals of the Minnesota Cleanup Revolving Loan Fund;
and
WHEREAS the Fridley Housing &Redevelopment Authority(Fridley HRA)has financially
participated in the redevelopment of the site in order to encourage and leverage other funding
sources;
THEREFORE BE IT RESOLVED that the Housing and Redevelopment Authority supports the
developer's application for a MCRLF Loan.
PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 3rd DAY OF
MARCH, 2016.
LAWRENCE R. CONIlVIERS, CHAIlZPERSON
WITNESSED:
WALTER T. WYSOPAL, EXECUTIVE DIRECTOR
I CERTIFY THAT the above resolution was adopted by the Housing and Redevelopment
Authority in and for the City of Fridley,Minnesota on March 3, 2016.
DEB A. SKOGEN, CITY CLERK
: i..► ACTION ITEM
z.
��� '��='``�'"Y HRA MEETING OF MARCH 3, 2016
DATE: February 26, 2016
TO: Wally Wysopal, Executive Director of HRA
FROM: Paul Bolin, Assistant HRA Director
SUBJECT: Approval of Mowing Contractor for 2016
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 over the past 5
summers. The rates are relatively low and the service very reliable. Passau has ��%
been flexible and respansive, as the Authority's property inventory often
changes. Passau Lawn Care has agreed to a contract extension to provide
mowing services for the same rate as the past three years.
Recommendation
Staff recommends that the Authority contract with Passau Lawn Care for the
2016 summer mowing season. Not only wiil 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 three years.
�016 Mowi�g Contract
City of Fridley H�tA
THIS AGRE�MENT EXTENSION is mad.e this 5th day of March,2016 by and bc:tween the Housing
and Redevetopme�at Authority in and for ihe City of Fridi�y, Anoka Courtty;Mitmesota(hereinafter cxlled
the"HRA"�and Passau(nc.(hereinafter called the"Contractor").
T��e Con#ract Term af the contract dated Fekaruary 8,201.3 is liereby exi:ended for anolher��jawing
season to December 3 i,2016.The HRA�nay cancel ail or an}r�art ofthis contra.ct upon thirty(30)days
��ritten not'ice. Wiik�tt�e consent of both parties,this contract may be extended for one additional a��e-
ye��r pe►•iod.
Lxec�rtc;d as of the day and year first above written.
City of Fridley HRA Passau,Inc.
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Sy - $v_.r_'._- '�``=.,
J.ts Executive T3irecfor lts t ��c;�+ '� �'7-'
_.._ _ ____�_... . . _._._.._.._ �_.�_..�. ......_. ... _..___ _ _._ __ __ _ _....._.
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Fridley HRA .
Housing Program Summary
Cover Page ,
March 3, 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 DocumentsU-IRA�HRA Agenda Items�2016Vviarch 3,2016�Housing Progam CovaMarch 3,2016.docx
.
FRIDLEY Loan Summary Report
Activity for Period 1/16/16 -2/15/16
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 p
Closed End 24,975.00 1 24,975.00 1
Last Resort 0.00 0 0.00 0
Total 24,975.00 1 24,975.00 1
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
Other Interior Improvements 1 100.00 Single Family Residence 1 100.00
Bolin, Paul
From: Stacy Boots Camp <sbootscamp@mncee.org>
Sent: Tuesday, February 23, 2016 3:22 PM
To: Bolin, Paul I,
Subject: Re: HES Visits Update �
Hi Paul,
Yes, there are 5 in Feb, there were 10 in ]an and 3 on the calendar for March so far.
Let me know if there is anything else I can get you.
Thanks,
Stacy
Stacy Boots Camp j �`�::- ��
�it::r��.��3�F��=e�i :,�ic� �:<<,�rt�ach Coordinatar � 612.244.2429
Center for Energy and Environment
212 North 3rd Ave #560 � Minneapolis, MN 55401
(fax} 612.244.2429 I www.mncee.org
On Tue,Feb 23, 2016 at 3:16 PM,Bolin,Paul<Paul.Bolin(c�fridle n. o�v>wrote:
Stacy—
Just checking in to see if there were any HES visits in the past month?
Sincerely,
�a.u2
Paul Bolin, AICP
Assistant Executive Director
City of Fridley Housing &Redevelopment Authority
6431 University Avenue NE
Fridley,MN 55432
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The City Qf Fridiey's Housing and Redeveiopment Authority (HRA) currently offers home
improvement loan programs for �ridley resiaents.
LQ11U INTEREST LOAN ; EMERGENCY DEFERRED L4Ai�
• 4.5°lo fixed rate (4.504% Annua{ Percentage Rate)* ; � 0%fixed rate
• $50,000 maximum loan amount � • $10,Q00 maximum loan amount
• No income limits � • Deferred loan is 100% due if property ownership
• Most improvements are eligible changes in 20 years
� • Eligible improvements determined through a
required anaiysis of the condition of the property
MUE�TIFAMILY EXTERIOR LOAN : MOBILE HOME IMPROVEMENT LOAN
• 4.5%fixed rate (4.504% Annual Percentage Rate)` ; • 4.5% fixed rate
• $50,000 maximum loan amount � • $10,000 maximum loan amount
• No income limits ; • No income limits
• 2-4 unit properties are efigible � • Most interior and exterior improvements are
• Eligible improvements include corrections to code eligible
violations and exterior structure improvements
------------------------------------------------------------------------�--------------------------------------------------------------------
FREE REMODELING ADVISOR VtSITS
Not sure where to begin with your home improvement projects? A free Remodeling Advisor Visit can he{p
you get started. This service is FREE tor Fridley homeowners and includes a visit to your home to assist you
with remodeiing ideas, necessary repairs and improvements and assistance reviewing bids.
Calf 612-335-5856 to schedule an appointment.
For more information on this or other programs contact 612-335-5884,
email loaninfo@mncee.org or visit mnlendingcenter.org.
The current loan terms and conditions stated, including
interest rates, do �ot constitute a commitment to lend or
offer to enter into an agreement,and such an offer may only
�
be made pursuant to Minnesota Statues, Section 47.206(3) ! �
and 4 . � f . . , s,`_;. E p
( � ', t: '±�.��i t . . � OPP�OR�Tl7NITY
*APR is based on$5Q000 for 120 months.Closing costs apply. �
Printed on recycled paper.
� Financial Resources & Incentives for Businesses
�� ,.
Fridley
� ' �• • ���. Use of Proceeds Size Terms Contact
:�
Land,building, machinery,equipment(no $50,000—$150,000* Up to 10 years for machinery Mike Mulrooney,CMDM:
• - •- ': &equipment;
„� working capital) *certain excepfions apply Up to 15 years for real estate 763-784-3337
�
' - � Significant commercial/industrial Paul Bolin,City of Fridley HRA:
�f,� Varies Varies
development 763-572-3591
Up to$150,000;up to Mike Mulrooney,CMDM:
� � . Land, building, machinery, equipment Varies
$25,000 retail 763-784-3337
� � • Real estate,fixed assets, inventory, Kathleen DuChene, MCCD:
Varies Varies
� . • working capital 763-438-7315
ti Lighting,HVAC,refrigeration equipment, Jim Hasnik,CEE:
• . � Varies Varies
insulation,doors,windows 612-335-5885
Real estate and fixed assets for Up to 10 years for machinery paul Bolin,City of Fridley HRA:
• . . . manufacturing and technology-related Varies or equipment; 763-572-3591
industries Up to 20 years for real estate
' • ' • - Paul Bolin,City of Fridley HRA:
Rebate for job creation Varies Rebate for job creation
• • • � • 763-572-3591
� � � � � �;` Land assembly and public infrastructure
Paul Bolin,City of Fridley HRA:
" that maximize benefits of regional $100,000 to$800,000 Grant
� �E 763-572-3591
infrastructure
Environmental assessment and cleanup
" ' ' " ' ' Paul Bolin,City of Fridley HRA:
for residential,commercial or industrial Varies Grant
• • ' � 763-572-3591
development
� � - � • Grants supporting real estate Paul Bolin,City of Fridley HRA:
Varies Grant
• ' - � • - . . • redevelopment 763-572-3591
.A
C1TY OF FRIDLEY
S�1GN-IN SHEET
Hf�USING 8� REDEVELOPMENT AUTHORITY MEETING
,
�a��� �� Z.o� �
Name and Address Agenda item of Interest
t'c.�l 1-�I � V'yl' I S ,�►�r� � �