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HRA 09/01/2016 September 1, 2016 HRA Meeting Regular Meeting Agenda 7:00 p.m. Call to order Roll call Action Items 1.Approval of expenditures 2.Approval of July 14, 2016 Meeting Minutes 3.Resolution for Approval of 2016 Tax Levy for Taxes Payable in 2017 4.Columbia Arena Redevelopment TIF District Creation 5.Authorize RFP for Private Development – Columbia Arena Informational Items 1.Housing Loan Program Update Adjournment K:\\HRA\\HRA Agenda Packets\\2016 Agenda Packets\\September 1, 2016\\Regular Meeting September-2016 Agenda Outline.docxK:\\HRA\\HRA Agenda Packets\\2016 Agenda Packets\\September 1, 2016\\Regular Meeting September-2016 Agenda Outline.docx CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION JULY 14, 2016 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:02 p.m. ROLL CALL: MEMBERS PRESENT: Lawrence Commers William Holm Pat Gabel Stephen Eggert MEMBERS ABSENT: Gordon Backlund OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Wally Wysopal, City Manager Scott Hickok, Community Development Director Jim Casserly, Development Consultant ACTION ITEMS: 1.Approval of Expenditures MOTION by Commissioner Gabel to approve the expenditures. Seconded by Commissioner Eggert. Commissioner Holm asked how many loans the Center for Energy and Environment issued. Paul Bolin , HRA Assistant Executive Director, replied two. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED 2.Approval of May 5, 2016 Meeting Minutes MOTION by Commissioner Holm to approve the minutes. Seconded by Commissioner Eggert. Commissioner Gabel asked that the following corrections be made: nd briningbringing Page 3, 2 paragraph, “Wally Wysopal, City Manager, replied that in a in construction manager at this point…” ndrd them Page 3, 2 paragraph from bottom, 3 sentence, “encourages to not have…” ndrd not Page 4, 2 paragraph, 3 sentence should read “There are penalties for meeting schedule…” Housing and Redevelopment Authority Meeting of July 14, 2016 2 rdth Commissioner Eggert noted the following correction: page 2, 3 paragraph from the bottom, 5 at risk sentence should read “construction manager ” is a new type… UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MINUTES APPROVED AS AMENDED 3.Annual Election of Officers Paul Bolin , HRA Assistant Executive Director, stated that the HRA Bylaws require the Commissioners to elect a Chair and Vice Chair to one-year terms. Staff recommends the Authority hold an election for Chair and Vice Chair. MOTION by Commissioner Holm to nominate Larry Commers as Chair and Pat Gabel as Vice Chair. Seconded by Commissioner Eggert. Chairperson Commers closed the nomination process. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4.Approval of Resolution Adopting Amendment #3 – Hyde Development/Northern Stacks Paul Bolin. HRA Assistant Executive Director, stated that the complex multi phased Northern Stacks development continues to move forward more quickly than originally anticipated. The HRA is preparing to issue notes (pay as you go TIF) for phases 1 and 2 and grant funds for phase 4. More amendments are required to move forward. This is the third amendment to the agreement. The order of the schedule is changing because of the market demands and tenants wishes. Mr. Bolin noted that the issuance of notes in the agreement calls for calculating an internal rate of return and determining an excess percentage. Mr. Bolin said that the agreement limits the ability to draw funds until substantial completion of phase 3. Hyde Development is currently cleaning contamination in phase 4 and this may be developed with phase 3. The amendment calls for drawing of funds upon completion of buildings in phase 1 and 2. The agreement is limited in disbursement for the rate/amount of funds that could be going out at any one time. Staff recommends approval of the proposed amendments. Chairperson Commers asked if this would alter the HRA’s $4.5M commitment to the project. Mr. Bolin replied no that there is still a cap of $4.5M on the Hazardous Substance Subdistrict. Chairperson Commers asked if this would accelerate the HRA’s contributions. Jim Casserly , Development Consultant, replied that the HRA will not have more than $3.5m out at any one given time, that is still the case. Adjustments were made because in the original language there was a reserve fund that is not necessary. The tax increment will be treated like all Housing and Redevelopment Authority Meeting of July 14, 2016 3 of the other funds. There will be an administrative 10% fee for the Authority and the balance is available to pay off this from the general fund. Chairperson Commers said that this year we have $3.5m outstanding and then it goes up to the $4.5m. Mr. Casserly replied that is cumulative amount, not the fund balance. Chairperson Commers noted that there will be full recovery by December of 2033, 5 years sooner than expected. He asked in Section 3.5 B1 what the reason was for the increase in the interest rates; 3.5% to 5% and 5% to 10%. Mr. Casserly replied that the interest rate remains 3.5% and administrative rate is at 10% instead of 7.5%. Chairperson Commers asked what the payment date was for in 2023. Mr. Casserly replied that a date needed to be picked to determine what the developer actually made on this project based on the formulas. If he makes more than what is allowed the principal will be reduced on the last issued revenue note. Commissioner Holm asked about the cash flow on #1. He asked what was being planned as of this date. Mr. Casserly replied that this tries to reflect the reality of what has already been advanced plus one more payment. That number reflects what has been spent and what we have been told will be needed by the end of the year. At the end of the year the unrecovered amounts will be $1.7m and the advanced amount is $2.6m. The amount of increment coming in is substantial. These taxes are on the base amount and get paid before any other increment. Tax increment will start this year on the entire project. Commissioner Eggert stated that the numbers all work regardless of the final buildings that are built. If some buildings are not built, this program still works. Mr. Casserly replied yes, that is correct. MOTION by Commissioner Eggert to approve the resolution adopting amendment #3 Hyde Development / Northern Stacks. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS: 1.Cielo Update Paul Bolin, HRA Assistant Executive Director, stated that 80% of the Cielo phase one is nd occupied and the 2 phase is starting; the financing is in place and the building permit is approved. The second building will start construction late this summer. Housing and Redevelopment Authority Meeting of July 14, 2016 4 Commissioner Eggert asked how many stages there were to this development. Mr. Bolin replied that there will be three buildings on site; the first two match each other with 102 units each and the third building will have 54 units. The third building may be senior building; they are waiting to see what the market demand is at the time they are ready to build the third phase. nd Scott Hickok , Community Development Director, added that the park feature between the 2 rdnd and 3 building will be completed as part of the 2 phase. Chairperson Commers asked what type of transportation would be available from the apartments over to the rail station. Mr. Hickok replied that a number of tenants are avid bus users and the train is another option for them. There has been discussion to have an overpass at some point to go across University and the buildings are designed to have a skyway between the buildings. This development is designed to be a transit oriented development. 2.Housing Program Update Paul Bolin , HRA Assistant Executive Director, stated that in June three loans closed making a total of 8 year to date. Last year we only had 2 loans for the entire year. There was one remodel advisor visit in June making five year to date. Last year there were three year to date at this time. There were 5 Home Energy Squad visits making 23 year to date. CEE is working on a social media campaign which will help market these programs. ADJOURNMENT MOTION by Commissioner Eggert to adjourn. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:37 P.M. Respectfully Submitted, Krista Peterson, Recording Secretary HRA ACTION ITEM SEPTEMBER 1, 2016 DATE: August 24, 2016 TO: Wally Wysopal, City Manager FROM: Paul Bolin, Assistant Director of HRA Shelly Peterson, Finance Director SUBJECT: Consider HRA Tax Levy for Taxes Payable in 2017 Since 1996, the HRA has utilized a tax levy to help support its housing rehabilitation programs. The levy is equal to .0185% of the taxable market value of all real estate and personal property. The tax levy will allow the Authority to collect approximately $408,362, based on a city-wide tax market value of $2,207,363,400. In terms of the impact on taxpayers, the levy would cost $27.75 per year for a home valued at $150,000 and $185.00 per year for a commercial property valued at $1,000,000. The revenues raised by the levy are directed towards ongoing and future redevelopment priorities. State Statutes require the consent of the City Council, prior to the tax levy becoming th effective. The City Council will act on this item on September 12. As a final note, the HRA tax levy will be certified to the County Auditor by September 15, 2016. Recommendation Staff recommends that the Authority approve the attached resolution at their regular meeting on September 1, 2016. Attachment K:\\HRA\\HRA Agenda Packets\\2016 Agenda Packets\\September 1, 2016\\2017 HRA Memo (HRA Tax Levy).docx HRA RESOLUTION NO. 2016 -XX RESOLUTION ADOPTING A 2016 TAX LEVY COLLECTIBLE IN 2017 BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority"), as follows: Section 1. Recitals. 1.01. The Authority is authorized by Minnesota Statutes Section 469.033 to adopt a levy on all taxable property within its area of operation, which is the City of Fridley, Minnesota (the "City"). 1.02. The Authority is authorized to use the amounts collected by the levy for the purposes of Minnesota Statutes Sections 469.001 to 469.047 (the "General Levy"). Section 2. Findings. 2.01. The Authority hereby finds that it is necessary and in the best interests of the City and the Authority to adopt the General Levy to provide funds necessary to accomplish the goals of the Authority. Section 3. Adoption of General Levy. 3.01. The following sums of money are hereby levied for the current year, collectible in 2017, upon the taxable property of the City for the purposes of the General Levy described in Section 1.02 above: Total General Levy: .0185% of Taxable Market Value Amount: Maximum Allowed by Law Page 2 – Resolution No. 2016-XX Section 4. Report to City and Filing of Levies. 4.01. The Executive Director of the Authority is hereby instructed to transmit a certified copy of this Resolution to the City Council for its consent to the General Levy. 4.02. After the City Council has consented by resolution to the General Levy, the Executive Director of the Authority is hereby instructed to transmit a certified copy of this Resolution to the County Auditor of Anoka County, Minnesota. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA THIS 1stDAY OF SEPTEMBER, 2016. LAWRENCE R. COMMERS - CHAIRPERSON ATTEST: ____________________________________________ WALTER T. WYSOPAL - HRA EXECUTIVE DIRECTOR ACTION ITEM HRA REGULAR MEETING SEPTEMBER 1, 2016 Date: August 23, 2016 To: Wally Wysopal, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subject: Creation of Columbia Arena Redevelopment TIF District During last month’s work session, the Authority reviewed the TIF plan for the District being proposed to assist private development around the proposed City Hall. The TIF plan is really a best guess of the types and density of development that could happen on the site.Based on the size of the site, there is the potential to develop up to 700 housing units and 15,000 square feet of retail on the site. Under this scenario, the $76M in added market value could generate enough tax increment to pay for $13M (present value) of eligible expenses.It is important to maximize the potential development in the TIF plan, as that then becomes the cap on increment generation for the site. With the City planning to bond for the municipal center and creating a municipal campus on only a portion of the 33 acre site, the HRA can focus on developing the remainder of the site. The Authority will likely need to provide assistance with utility installations, roadway construction, parking ramps, soil corrections and/or other extraordinary costs. Staff and legal counsel have been working on the creation of the TIF District in anticipation of the private development. Attached you will find a memorandum from Attorney Casserly, the TIF Plan and a resolution approving creation of the district. Final approval of the TIF District will take th place at the City Council meeting on September 12. James R. Casserly jcasserly@mmblawfirm.com Direct 952.885.1296 MEMORANDUM TO:City of Fridley City of Fridley HRA FROM:James R. Casserly, Esq. SUBJECT:Creation of TIF District 23 (Redevelopment Project 2016) DATE:August 16, 2016 Our File No. 9571-82 Introduction Attached are the Tax Increment Financing Plan (the “Plan”) for Tax Increment Financing District No. 23, an HRA Resolution and a City Resolution. The HRA is meeting September 1, 2016 to review the Plan and the City Council is holding a public hearing on the Plan on September 12, 2016. The Plan The Plan follows a format that is identical to plans previously approved by the HRA and the City. The Plan describes the development activity anticipated to occur (subsection 25.6), the type of tax increment district which is a redevelopment district (subsection 25.15), the duration of the TIF district which is 25 years from date of receipt of the first increment, and the date of first increment is being deferred until 2020 (subsection 25.16). Exhibits to the Plan include a listing of the parcels to be included in the TIF district (Exhibit XXV-A), a map of the district (Exhibit XXV-B), the market value, square foot, unit assumptions and tax increment cash flow (Exhibit XXV-C), the “but for” analysis (Exhibit XXV-D), the estimated impact on the tax base of various taxing jurisdictions (Exhibit XXV-E), and a budget for TIF 23 which is actually an exhibit to the Redevelopment Plan (Exhibit 1-C). HRA Resolution This is the standard resolution in which the HRA makes findings, approvals and adoptions and then forwards its recommendations to the City Council for its review and approval following a public hearing. City Resolution This resolution is typical of the resolutions the City has previously adopted for approving a plan and creating a tax increment financing district. The City holds a public hearing and takes testimony. If it wishes to adopt the Plan, it would then make the general findings and specific findings contained in the resolution and adopt the resolution. Conclusion It is not unusual for the HRA and the City to adopt a plan prior to having a specific developer or developers for the parcels identified in the plan. This is exactly the procedure the City and HRA followed for the creation of its last two districts, Gateway Northeast and Northstar Transit. The City and the HRA have been anticipating redevelopment of this area, which includes the old Columbia Arena, for many years. Adopting the Plan and establishing a tax increment district are the mechanisms that allow redevelopment to occur. JRC/lar Enclosures MMB: 4820-1458-7702, v. 1 2 SECTION XXV TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 23 (Redevelopment Project (2016)) Subsection 25.1. Statement of Objectives. See Section I, Subsection 1.5, Statement of Objectives. Subsection 25.2. Modified Redevelopment Plan. See Section I, Subsections 1.2 through 1.15. Subsection 25.3. Parcels to be Included. The boundaries of Tax Increment Financing District No. 23 (the “TIF District”) are described on the attached Exhibit XXV-A and illustrated on Exhibit XXV-B. Subsection 25.4. Parcels in Acquisition. The Authority may write down or acquire and re-convey real property, or interests therein, within this TIF District or elsewhere within the Project Area, at the time or times as the Authority may determine to be necessary or desirable to assist or implement development or redevelopment within the Project Area or the TIF District. The Authority may acquire any of the parcels described on Exhibit I-A and illustrated on Exhibit I-B by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of the Redevelopment Plan or the TIF Plan. Subsection 25.5. Development Activity for which Contracts have been Signed. As of the date of adoption of the TIF Plan, the Authority intends to enter into Redevelopment Contracts with developers for the activities discussed below. Subsection 25.6. Specific Development Expected to Occur. At this time it is anticipated that the current parcels will be redeveloped including demolition and removal of blighted and substandard structures, remediation and installation of public improvements, the infrastructure to facilitate development and the construction of the following in the Phases described below: Phase I: 15 owner-occupied patio homes commencing 2017 Phase II: 15 owner-occupied town homes commencing 2018 Phase III: 180 senior rental housing units commencing 2019 15 owner-occupied town homes Phase IV: 7,500 square feet of commercial commencing 2020 retail/office space 180 senior rental housing units 142 market-rate rental units 25-1 Phase V: 7,500 square feet of commercial commencing 2021 retail/office space 142 market-rate rental units Upon completion of the redevelopment, it is anticipated that 15,000 square feet of commercial retail/office, 284 market-rate housing units, 360 senior rental housing units, and 45 owner-occupied housing units will be constructed with an estimated market value of approximately $75.9 million. Subsection 25.7. Prior Planned Improvements. After due and diligent search, the Authority has determined that no building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the Authority. Subsection 25.8. Fiscal Disparities. The Council hereby elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subdivision 3, clause (a) if and when commercial/industrial development occurs within the TIF District. Subsection 25.9. Estimated Public Improvement Costs. The estimated public improvement costs, including interest thereon to be incurred for the benefit of and within the TIF District and the Project Area are set forth on Exhibit I-C. Subsection 25.10. Estimated Amount of Bonded Indebtedness. It is anticipated that approximately $18.6 million of bonded indebtedness may be incurred with respect to this portion of the Project Area. Subsection 25.11. Sources of Revenue. Anticipated revenue sources to assist in the financing of the public improvement costs, pursuant to Subsection 21.9. above, include (1) general obligation and/or revenue tax increment obligations with interest; (2) the direct use of tax increments; (3) the borrowing of available funds, including without limitation interest-bearing City short-term or long-term loans; (4) interfund loans or advances; (5) interfund transfers, both in and out; (6) land sale or lease proceeds; (7) levies; (8) grants from any public or private source; (9) developer payments; (10) loan repayments or other advances originally made with tax increments as permitted by Minnesota Statutes; and (11) any other revenue source derived from the City’s or Authority’s activities within the Project Area as required to finance the costs as set forth in Exhibit I-C. All revenues are available for tax increment eligible expenses within the Project Area as allowed by Minnesota Statutes. Subsection 25.12. Estimated Original and Captured Tax Capacities. The tax capacity of all taxable property in the TIF District, as most recently certified by the Commissioner of Revenue of the State of Minnesota on January 2, 2016, is estimated to be $75,504. The captured tax capacity of the TIF District upon completion of the proposed improvements on January 2, 2022 is estimated to be $860,681. The Authority intends to utilize 100% of the captured tax capacity for the duration of the TIF District for purposes of determining tax increment revenues. 25-2 Subsection 25.13. Tax Increment. Annual tax increment generated from the TIF District has been calculated at approximately $1,145,437 upon the completion of the improvements. This estimate is provided on the attached Exhibit XXV-C. Revenue has also been projected for the duration of the TIF District and is shown on Exhibit I-C-18. Subsection 25.14. Local Tax Rate. The estimated pay 2016 local tax rate is 1.33085. Subsection 25.15. Type of TIF District. The TIF District is a redevelopment district pursuant to Minnesota Statutes, Section 469.174, Subdivision 10. Subsection 25.16. Duration of TIF District and Deferral of Tax Increment. The duration of the TIF District is expected to be twenty five (25) years from receipt of the first tax increment. The date of receipt of the first tax increment is deferred until 2020. Thus, it is estimated that the TIF District, including any modifications for subsequent phases or other changes, would terminate in the year 2045. Subsection 25.17. Estimated Impact on Other Taxing Jurisdictions. The estimated impact on other taxing jurisdictions assumes construction would have occurred without the creation of the TIF District. If the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact that the financing would not have occurred without the assistance of the Authority, the attached Exhibit XXV-E reflects (I) the estimated impact of the TIF District if the "but for" test was not met; (ii) the estimated amount of tax increment generated annually and over the duration of the TIF District; and, (iii) the estimated amount of tax increment attributable to the County, School District and other taxing districts. At this time the Authority anticipates there will be no impact on City services due to the creation of the TIF District. Additionally, since the City has no current plan to issue general obligation debt for project costs, it further anticipates that there will be no impact on its borrowing costs due to the creation of the TIF District. Please refer to Exhibit XXV-D for the narrative “but for” analysis. Subsection 25.18. Modification of the TIF District and/or the TIF Plan. As of September 12, 2016, no modifications to the TIF District or the TIF Plan have been made, said date being the date of initial approval and adoption thereof by the City Council. 25-3 EXHIBIT XXV–A PARCELS TO BE INCLUDED IN THE TAX INCREMENT FINANCING DISTRICT NO. 23 11-30-24-34-0002 11-30-24-34-0003 And that portion of 11-30-24-34-0005 legally described as the East 875.00 feet of the South 400 feet of the Southeast Quarter of the Southwest Quarter of Section 11, Township 30 North, Range 24 West, Anoka County, Minnesota and all easements, rights-of-way, roads and streets. XXV-A-1 EXHIBIT XXV- B Map of Tax Increment Financing District No. 23 XXV-B-1 EXHIBIT XXV–D “BUT FOR” ANALYSIS The proposed TIF District comprising three parcels will provide the City an opportunity to promote redevelopment in one of its more underutilized and older areas. One of the parcels includes the former Columbia Ice Arena; the building had no value, had numerous building and fire code issues and was demolished and removed. Another underutilized parcel includes the City’s public works building, which also requires numerous repairs to bring it into compliance with current building codes. A third parcel includes a portion of Locke Park. The buildings have been deemed to be substandard and from an inspection and analysis provided by LHB Engineers & Architects, it has been determined that the three parcels in this site qualify for inclusion in a redevelopment tax increment financing district. Redevelopment of this site would accomplish one or more of the following objectives as provided for in the City’s Comprehensive Plan: Remove older, blighted or outdated buildings; Provide the opportunity for more efficient land uses; Provide an opportunity to correct environmental problems; Provide an opportunity to build new commercial, office, or residential facilities to meet the current market demand of the community; Create additional job opportunities; Strengthen the tax base; Eliminate incompatible land uses; Create opportunities for new streetscape improvements, such as lighting, decorative fencing, or landscaping; and Update old utilities with new facilities and allow for the burying of above ground utility lines. Upon completion of the proposed redevelopment which includes the construction of approximately 15,000 square feet of commercial retail/office space, 284 market-rate rental housing units, 360 senior rental housing units, and 45 owner-occupied housing units, the City’s market value should increase by approximately $75.9 million. The costs of the substantial redevelopment activities, including demolition and removal of structures and asphalt, remediating environmental degradation, providing some geotechnical corrections, relocating utilities and installing streets, public utilities and necessary infrastructure so that there will be sites for construction and the cost of acquiring these parcels are estimated to be approximately $14.5 million. However, the market value of the site is a fraction of the costs because of extensive piling and geotechnical corrections that will be incurred by developers in constructing on the sites. XXV-D-1 In addition, the site density can only be achieved with some parking treatments which add substantially to the development costs. But for the use of tax increment, the Authority and City have determined that this development would not occur in the reasonably foreseeable future if at all. XXV-D-2 EXHIBIT XXV - E XXV-E-1 HRA RESOLUTION NO. 2016-___ A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 AND THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NOS. 6, 9, 11-13 AND 17-22 TO REFLECT INCREASED PROJECT COSTS AND INCREASED BONDING AUTHORITY WITHIN REDEVELOPMENT PROJECT NO. 1, CREATING TAX INCREMENT FINANCING DISTRICT NO. 23 AND ADOPTING A TAX INCREMENT FINANCING PLAN RELATING THERETO. 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 approve and adopt the proposed modifications to its Redevelopment Plan for Redevelopment Project No. 1 (the “Project Area”) reflecting increased project costs and increased bonding authority, pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047, inclusive, as amended and supplemented from time to time. 1.02. It has been further proposed that the Authority approve and adopt the proposed modifications to the Tax Increment Financing Plans (the "Existing Plans") for Tax Increment Financing Districts Nos. 6, 9, 11-13 and 17-22(the "Existing Districts") reflecting increased project costs and increased bonding authority within the Project Area, pursuant to Minnesota Statutes, Section 469.174 through 469.1799, inclusive, as amended and supplemented from time to time. 1.03. It has been further proposed that the Authority approve the creation of proposed Tax Increment Financing District No. 23 (the “Proposed District”) within the Project Area and approve and adopt the proposed Tax Increment Financing Plan (the “Proposed Plan”) relating thereto, pursuant to and in accordance with Minnesota Statutes, Sections 469.174 to 469.1799, inclusive, as amended and supplemented from time to time. 1.04. The Authority has investigated the facts and has caused to be prepared with respect thereto, a modified Redevelopment Plan for the Project Area and modified Existing Plans for the Existing Districts reflecting increased project costs and increased bonding authority within the Project Area and the Proposed Plan for the Proposed District, defining more precisely the property to be included the public costs to be incurred, and other matters relating thereto. 1.05. The Authority has performed all actions required by law to be performed prior to the approval and adoption of the modifications to the Redevelopment Plan and Existing Plans and the approval and adoption of the Proposed Plan. HRA Resolution No. ___________ 1.06. The Authority hereby determines that it is necessary and in the best interests of the City and the Authority at this time to approve and adopt the modifications to the Redevelopment Plan and Existing Plans, to create the Proposed District and to approve and adopt the Proposed Plan relating thereto. Section 2. Findings. 2.01. The Authority hereby finds, determines and declares that the assistance to be provided through the adoption and implementation of the modified Redevelopment Plan, modified Plans and Proposed Plan (collectively, the “Plans”) is necessary to assure the development and redevelopment of the Project Area. 2.02. The Authority hereby finds, determines and declares that the Plans conform 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 finds, determines and declares that the Plans afford maximum opportunity consistent with the sound needs of the City as a whole for the development and redevelopment of the Project Area by private enterprise and it is contemplated that the development and redevelopment thereof will be carried out pursuant to redevelopment contracts with private developers. Section 3. Approvals and Adoptions. 3.01. The modifications to the Redevelopment Plan reflecting increased project costs and increased bonding authority within 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. 3.02. The modifications to the Existing Plans reflecting increased project costs and increased bonding authority within 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. 3.03. The creation of the Proposed District within the Project Area and the adoption of the Proposed Plan relating thereto 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. 2 HRA Resolution No. ___________ Section 4. Filing of Plans. 4.01. Upon approval and adoption of the Plans, the Authority shall cause said Plans to be filed with the Minnesota Department of Revenue, the Office of the State Auditor and Anoka County. PASSED AND ADOPTED BY 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 CERTIFICATION I, Wally Wysopal, Executive Director of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, hereby certify that the foregoing is a true and correct copy of Resolution No. ____________ adopted by the Authority on the ______ day of ____________, 2016. _______________________________________ WALLY WYSOPAL - EXECUTIVE DIRECTOR MMB: 4833-5617-2341, v. 1 3 ACTION ITEM HRA REGULAR MEETING SEPTEMBER 1, 2016 Date: August 25, 2016 To: Wally Wysopal, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subject: Authorization to Solicit Developers – Columbia Arena Over the past several months the City has spent a great deal of time developing potential layouts for a new municipal campus on the former Columbia Arena site. Interior layouts of the buildings are nearly complete and potential lot lines are close to being determined. The plans are now far enough along that Staff can now start to have real conversations with developers about the types and amount of private development that could happen around the proposed municipal campus. From the Housing Corridor meetings held in the spring of 2015, we learned there is a desire to build housing on the site. There was a consensus that patio homes would be best located on the southern edge of the property as a buffer to the single family neighborhood to the South and that more dense development could happen north of the patio homes. As the City has had meeting to discuss the new municipal campus, it has incorporated the ideas that came from the 2015 Housing Corridor meetings into all plans. The TIF Plan for TIF District #23 was also based on that development scenario. Up until now, all of the potential/proposed private development on the site has just been a combination of public input (HCI meetings, open houses), staff identifying the potential densities supported by the site, and informal discussions with a number of developers with different specialties. The overall project is nearing a point where the municipal center development and private development could benefit from working together. The same roads and utilities that will be needed by the municipal center will also be needed for private development. Having input from those that will do the private development will ensure that roads and utilities are put in the right location. In addition to coordinating on roads and utilities, the location and designs of the private development will impact and/or be impacted by the municipal center and its amenities (ponding, trails, etc.). Bringing private developers into the process, early may allow the opportunity to have them pay for some of the improvements. Because we have not formally solicited proposals from developers, we may be missing out on some development ideas that are even better than those we have projected could be built on the site. It is now time to formally solicit proposals from the development community. Staff is asking for authorization to develop a request for proposals, to be sent out to the development community, asking them to tell us what they would build, when they would build, where they would build, what they would pay for the land and what if any assistance they would need/anticipate. The RFP would be tightly drafted and would incorporate the results of the HCI Meetings (patio homes as a buffer), the environmental reports, the soils reports, site limitations and extent of land available for redevelopment. Because of the land area and potential for different types of housing, it is likely that we will see developers/builders team up with each other to respond to the RFP’s and the project to be built in phases. Of course the HRA will have the right to reject any and all proposals. The suggested timeline is: Issue RFP – Mid-September RFP’s Due – Mid-October Staff review – Mid/Late October Recommendation to HRA – November 3 Develop contract / refine proposal – January 5 Building plan development - February / March Potential Construction Start – May 2017 Staff recommends the Authority approve a motion authorizing staff to move forward with a process to select a developer or development team for the private development around the proposed municipal center. FRIDLEY Loan Summary Report Activity for Period 7/16/16 - 8/15/16 Application packets requested/mailed: This period:114Year-to-Date: 9 Residential Advisor Visits:This period:Year-to-Date: 3 Loans currently in process for residents in your City/Neighborhood: 14 Closed Loans This period:Year-to-Date: Fridley UnitsUnits 00 Closed End212 263,115.60 32,469.00 Last Resort00 0.00 0.00 Last Resort Emergency11 10,000.00 10,000.00 Deferred Total 42,469.003273,115.6013 Leveraged Funds This period:UnitsUnitsYear-to-Date: MHFA FUF 31,875.00131,875.001 Total 31,875.0031,875.001 1 # Types of Improvements Financed YTD# of Projects% of TotaTypes of Properties Financed YT% of Total lD Single Family Residence 14100.00 Additions/Finishing off unused space 15.88 Bathrooms 15.88 Driveways 15.88 Garage 15.88 Heating System 15.88 Kitchens 211.76 Landscaping 15.88 Other Exterior Improvements 211.76 Other Interior Improvements 15.88 Plumbing 211.76 Roof 15.88 Siding, Stucco, Exterior Paint 15.88 Windows, Doors, Storm Windows, Stor m 211.76