LS 80-01PLANNING CO101ISSION MEETING APRIL 23, 1980 PAGE 3
Mr. Boardman stated he would check into the process of changing house numbers
and would correct that problem.
MOTION by Ms. Schnabel, seconded by Mr. Langenfeld, to.recommend approval
to City Council of Vacation Request, SAV #80-02, Fridley Housing & Redevelop-
ment Authority: Vacate 12 foot North-South alley adjacent to Lots 16-30,
Bloc]: 21, Hyde Park, to add square footage to the lots being used for the
Home Ownership Program, lying between 58th & 59th Ave. N.E. on 3rd Street.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN HARRIS DECLARED THE MOTION CARRIED
UNANIMOUSLY.
i
4. LOT SPLIT REQUEST, L.S. X80-01, FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY:
Split Lots 21, 22, 23 and 24, Block 21, Hyde Park, into 3 building sites:
Parcel l; Lots 24 and North 13.3 feet of Lot 23, Parcel 2:- The Southerly
26.7 feet of Lot 23 and the Northerly 26.7 feet of Lot 22, Parcel 3:
Lot 21 and the South 13.3 feet of Lot 22, the same being 5821, 5825, and
5831 3rd Street N.E.
(Note change in legal description.)
Mr. Boardman stated the HRA has purchased this property which is approximately
160 ft. of lot. They are looking at breaking that up into.three buildable
sites. With the vacated alley, that gives them the required lot size of over
7,500 sq. ft. They also fall under the allowable lot width of between 50
and 60 feet. There are conditions placed on those lot widths and those
conditions are setback conditions from the sideyard. They do intend to
develop the buildings on those sites that will meet those setback conditions.
(Mr. Treuenfels arrived at 8:20 p.m.)
MOTION by Ms. Hughes, seconded by Mr. Saba, to recommend approval to City
Council of Lot Split Request, L.S. #80-01, Fridley Housing & Redevelopment
Authority: Split Lots 21, 22, 23 and 24, Block 21, Hyde Park, into 3
building sites: Parcel 1: Lots 24 and North 13.3 feet of Lot 23, Parcel 2:
The Southerly 26.7 feet of Lot 23, and the Northerly 26.7 feet of Lot 22,
Parcel 3: Lot 21 and the South 13.3 feet of Lot 22, the.same being 58212
5825, and 5831 3rd Street N.E.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN HARRIS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
5. -LOT SPLIT REQUEST, L.S. #80-02, FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY:
Split off the North 1/2 of Lot 23 and add it to Lot 24, Block 5, Hyde Park,
and add the South half to Lot 22, Block 5, Hyde Park, to make two building
sites from 3 lots, the same being 6041 and 6031 3rd Street N.E.
Mr. Boardman stated that the HRA has purchased the Parlin property. There
are 3 - 40 ft. lots which give them'a total of 120 feet of lot. They are
requesting a split to give them a lot size of 60' wide by 129' ddep. It is
over the 7,500 sq. ft. allowable lot size.
134
REGULAR MEETING OF MAY 5, 1980 PAGE 4
CONSIDERATION OF LOT SPLIT REQUEST, LS #80-01, 5821, 5825 and 5831
3RD STREET N. E. BY FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY
Mr. Flora, Public Works Director, suggested this item be tabled and con-
sidered at the time of the public hearing on June 9 regarding the vacation
request, since it concerns the same properties.
MOTION by Councilman Fitzpatrick to table this item to June 9, 1980.
Seconded by Councilman Schneider. Upon a voice vote, all voting aye,
Mayor Nee declared the motion carried unanimously.
CONSIDERATION OF LOT SPLIT REQUEST, LS #80-02, 6041 and 6031 -3RD
STREET, BY FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY:
Mr. Flora, Public Works Director, stated this lot split involves three
40 foot lots which have been purchased by the HRA and wish to split in
order to make two building sites from these three lots. He state the
Planning Commission has recommended approval of the lot split.
MOTION by Councilman Fitzpatrick to grant Lot Split, LS #80-02. Seconded
by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee
declared the motion carried unanimously.
Councilman Fitzpatrick raised the question on the size of the lots
covered under LS #80-01. He felt it would be better for the area to
have two 80 foot lots, rather than three 50 to 60 foot lots.
Mr. Qureshi, City Manager, stated they are trying to put a limit on the
cost for the sale of the lots, around $4,000 each, to meet the requirements
of moderate income housing.
Mr. Herrick, City Attorney, stated he talked with the City Planner, Jerry
Boardman,regarding this matter, and in Mr. Boardman's discussions with HUD,
what they propose on these lots is to sell them for around $4,000, plus the
cost of special assessments, and this figure is substantially less than what
they paid for the land with the dwelling on it. He stated the provisions of
the sale is something to the affect that if the family buying the home con-
tinues to live on the property for 10 years, a write-down will be written off.
If the family ehooses to sell the property or ceases to live on it, the City
would have the second mortgage and the difference between the cost of the
property to the City and what the buyer paid for the lot would have to be
paid.
Mr. Brunsell stated this is part of the large family housing program for which
the City has a grant and they will draw from this for the write-down.
Councilman Fitzpatrick felt it wouldn't make a difference if they had two
lots selling for $6,000 each or three lots selling for $4,000 each.
Mr. Herrick stated, from the standpoint on what the City would recover from
the sale of the lots, Councilman Fitzpatrick's point is true. He stated
the Council may wish to consider what is compatible with the neighborhood
probably more than the loss of $4,000 which might be the loss of a site
for another home.
Mr. Qureshi, City Manager, stated another consideration is that the land and
the construction of the home have to be kept within a certain dollar limit.
Councilwoman Moses stated, in talking with Mr. Boardman, the figure she
recalled was that the cost for the land and the home couldn't exceed $52,000.
She stated, depending on how the bids came in from the contractors for con-
struction of the home, the difference up to $52,000 would be paid for the
lot.
Councilman Fitzpatrick felt the money consideration here was not persuasive, ---
but the real consideration is whether there be' two 80 foot lots or three 53
foot lots.
ft
133
REGULAR MEETING OF MAY 5, 1980
PAGE 3
PROCLAMATION ESTABLISHING MAY 17, 1980 AS ARMED FORCES DAY IN THE CITY OF
FRIDLEY•
MOTION by Councilman Fitzpatrick to approve this proclamation. Seconded
by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee
declared the motion carried unanimously.
NEW BUSINESS:
t
CONSIDERATION OF FIRST READING OF AN ORDINANCE ON VACATION REQUEST, SAV #80-01,
7280 COMMERCE CIRCLE EAST AND 7281 COMMERCE CIRCLE WEST, P. W. PASCHKE:
Mayor Nee stated letters were received from the utility companies and they
indicated no objections to the vacation of the easement.
MOTION by Councilwoman Moses to waive the reading and approve the ordinance
upon first reading. Seconded by Councilman Schneider. Upon a voice vote,
all voting aye, Mayor Nee declared the motion carried unanimously.
CONSIDERATION OF FIRST READING OF AN ORDINANCE ON REZONING, ZOA #80-01, ROBERT
SCHROER:
This item will be considered after the item concerning the final plat for the
University Industrial Park.
CONSIDERATION OF FINAL PLAT, P.S. #80-01, UNIVERSITY INDUSTRIAL PARK, ROBERT
SCHROER:
Mr. Flora, Public Works Director, stated this plat is located on 81st, west
of University Avenue. He stated the Planning Commission has recommended
approval of the plat and pointed out the road to be constructed would be -
moved approximately 40.feet to the East.
Mr. Flora stated the Commission also recommended Lets 1 and 8, Block 4, be
granted a 35 foot setback with the stipulation that the loading be to the
rear of the building on these properties.
MOTION by Councilwoman Moses to approve the Final Plat, P.S. #80-01, University
Industrial Park, with the inclusion that Lots 1 and 8, Block 4, be granted a
35 foot setback with the stipulation that the loading be to the rear of the
building on these properties. Seconded by Councilman Fitzpatrick. Upon a
voice vote, all voting aye, Mayor Nee declared the motion carried unanimously.
CONSIDERATION OF FIRST READING OF AN ORDINANCE ON REZONING, ZOA #80-01, ROBERT
C ROER:
Mr. Flora, Public Works Director, stated this rezoning request is to change
the zoning from C-2 to M-1 relating to the University Industrial Park Plat.
He stated the Planning Commission has recommended approval, and the rezoning
was requested as the owner didn't feel the property was marketable as com-
mercial property because of the development at Northtown.
MOTION by Councilwoman Moses to waive the reading and approve the ordinance
upon first reading. Seconded by Councilman Fitzpatrick. Upon a voice vote,
all voting aye, Mayor Nee declared the motion carried unanimously.
RECEIVING PLANNING COMMISSION MINUTES OF APRIL 23, 1980:
CONSIDERATION OF VACATION REQUEST, SAV #80-02, HYDE PARK, BY FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY:
MOTION by Councilman Fitzpatrick to set the public hearing on this vacation
request for June 9, 1980. Seconded by Councilman Schneider. Upon a voice
vote, all voting aye, Mayor Nee declared the motion carried unanimously.
N
CONTRACT FOR DEMOLITION
THIS AGREEMENT entered into the lv /lP day of June, 1980 by and between
the Fridley Housing and Redevelopment Authority, a Minnesota Public Non-profit
Corporation, (hereinafter referred to as ".the Authority"), and Herbst Construction
Company, (hereinafter referred to as the Contractor), is for certain services -`
and conditions as set forth below:
I. Work to be Performed by Contractor
A. Structure demolition at 5832 University Avenue N.E. including both
single family house and garage.
B. Remove a];1 foundation and footings.
C. Fill with clean fill and grade to match surrounding grades.
D. All salvage material to be hauled and is the property of the
Contractor.
II. Work to be Performed by the Authority
A. Utility terminations will be by the City of Fridley.
III. Compensation
Authority agrees to pay contractor $1400.00 as per submitted written
estimate by contractor for work as conditioned by this contract.
IV. Licensing
The Contractor must obtain all necessary License's and permits as required
by the City of Fridley. All permits are to be paid by the Contractor.
V. Insurance and"Liability
.
The Contractor, as part of the licensing, must submit a Certificate of
Insurance evidencing the holding of Public Liability Insurance in the limits of "
$50,000 per person, $100,000 per accident for bodily injury and $25,000 for
property damage, and Certificate of Insurance evidencing the holding of Work-
man's Compensation, as required by law.
In all cases the Authority shall not be liable for any actions arising out of
the Contractor's activities in providing service for the City.
IN WITNESS WHEREOF, the Authority and Contractor have executed this agreement
as of the _ day of June, 1980.
5FRI LEY—,HOUSING AND REDEVELOPMENT AUTHORITY
b
it ! ecutive Director
HERBST STRUCTION C MPA Y
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HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 12, 1980 PAGE 2
2. LARGE FAMILY HOME OWNERSHIP PROGRAM:
A. Approve Demolition Contract for Removing Structure at
5832 University Ave. N.E.
Mr. Boardman stated he would like the approval of the Authority to
enter into a contract for demolition on the Johnson property at
5832 University Ave. N.E. The bids that came in were $2,100 by
Boland Construction and $1,400 by Herbst Construction. He stated
they advertised to try to sell the garage on that property, but did
not receive any response, so the garage will be torn down also.
MOTION by Mr. Prairie, seconded by Ms. Svendsen, to approve the
Contract for Demolition with Herbst Construction Co. for $1,400
for the structure demolition at 5832 University Ave. N.E., including
both single family house and garage. Upon a voice vote, all voting
aye, Vice -Chairperson Houck declared the motion carried unanimously.
B. Update on Survey on 6025 - 3rd St N.E. and 5932 University Ave. N.E.
Mr. Boardman stated they have gotten quotes on prices for surveying.
The quotes were $600 from Suburban Engineering, $690 from Comstock &
Davis, and a third quote for $900. He stated they have authorized
Suburban Engineering to do the survey on the four lots.
MOTION by Mr. Prairie, seconded by Ms. Svendsen, to approve the bid
from Suburban Engineering of $600 to do the surveys on 6025 - 3rd St. N.E.
and 5932 University Ave. N.E. Upon a voice vote, all voting aye,
Vice -Chairperson Houck declared the motion carried unanimously.
C. Approve Ordering of Updated Abstracts for the New Lots as Split by
the Fridley City Council to Prepare for Sale of Lots
Mr. Boardman stated he had written a memo, #80-45, dated June 6, 1980,
to the Authority asking for the approval of the Authority to order the
updating of the abstracts on the HRA lots being acquired. Updated
abstracts are required to complete the purchase agreements for the
sale of the lots. The cost of the abstracts is $199.
MOTION by Ms. Svendsen, seconded by Mr. Prairie, to approve the
cost of $199 for updating the abstracts of the Large Family Home
Ownership Program Lots. Upon a voice vote, all voting aye, Vice -
Chairperson Houck declared the motion carried unanimously.
D. Approve Wording of the Proposed Purchase Agreement and Second
Mortgage to be Attached at Time of Sale
Mr. Boardman stated they had Mr. Herrick put together some wording
similar to the wording discussed at the last HRA meeting. Within
the Purchase Agreement, it states they are going to be placing a
HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 12, 1980 PAGE 3
second mortgage on the property at 87. interest. That second mortgage
is the difference between what the purchase price is and what the
appraised price of that lot is prior to the time of sale. The wording
also states that if the purchaser of that property moves out of the
house within ten years,*the HRA has first right of refusal on the
property, purchasing the property at the current appraised value
minus the difference between the appraised value and the 890 interest,
or they will foreclose on the second mortgage. The Mortgage Note
is the second mortgage that is attached to the Purchase Agreement.
If the purchaser stays in the house for the ten year period, then
the principal and interest accumulated on the second mortgage would
be classified as satisfied.
Mr. Boardman stated they sent the Purchase Agreement and the Mortgage
Note to Dick Buddig, Legal Counsel for HUD, and he has no problems
with the documents.
MOTION by Mr. Prairie, seconded by Ms. Svendsen, to approve the
wording of the proposed "Purchase Agreement" and "Mortgage Note" to
be attached at time of sale. Upon a voice vote, all voting aye,
Vice -Chairperson Houck declared the motion carried unanimously.
E. Approve Appraisals on the Four New Lots to be Completed
Mr. Boardman stated that, as stated in the Purchase Agreement, prior
to the time they lay out the purchase agreements, they have to get
appraised values done on the vacant piece of properties. He was
asking for approval of these appraisals from the Authority so that
when they get ready to sell a property and write up a purchase agree-
ment, they can go ahead and get an appraised value so they can put
that appraised value within the purchase agreement. The appraisals
cost approximately $175 each.
MOTION by Ms. Svendsen, seconded by Mr. Prairie, to approve
appraisals on the four new lots to be completed. Upon a voice vote,
all voting aye, Vice- Chairperson Houck declared the motion carried
unanimously.
3. UPDATE ON REHAB PROGRAM:
Mr. Boardman stated that with the rehab program, they have been having
problems getting contractors to do the.work. They have two projects with
two bids, three projects with one bid, and one project with no bid. The
City gives the property owners a list of contractors who are interested in
the rehab program. The property owner is responsible for contacting those
contractors and getting three bids.
Mr. Boardman stated they feel they should move ahead with these projects.
On those projects that have two bids, they will take the low bid. On the
projects with only one bid, they are going to have Darrel Clark, Chief
Building Official, go out, look at the one bid, and give notice of whether
he thinks that bid is within reason. They have talked this over with HUD,
and HUD has no problem with it.