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HRA 10/06/2016 October 6,2016 HRA Meeting Regular Meeting Agenda 7:00 p.m. Call to order Roll call. Action Items 1. Approval of Expenditures 2. Approval of September 1, 2016 Meeting Minutes 3. Approval of Administrative Contract—Home & Garden Show 4. Approval of Resolution Supporting Grant Application-DEED Redevelopment 5. Approval of Resolution Supporting Grant Application-Met Council TBRA Informational Items 1. CEE Housing Programs Update 2. Locke Park Pointe RFQ 3. Existing City Hall Update Adjournment K:\HRA\HRA Agenda Packets\2016 Agenda Packets\October 6,2016\October-2016 Agenda Outline.docxK:\HRA\HRA Agenda Packets\2016 Agenda Packets\October 6,2016\October-2016 Agenda Outline.docx MI r,Ej t Fridley HOUSING AND REDEVELOPMENT AUTHORITY MEETING OF OCTOBER 6, 2016 1 7:00 p.m. — City Council Chambers Sign-in Sheet Please print name, address and item number you are interested in. Print Name (Clearly) Address Item No. �, Check Report My City of Fridley, MN By Check Number�� Date Range: 08/29/2016 -09/15/2016 Fridley Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Bank Code:APBNK-HRA-APBNK-HRA hra-623 FRIDLEY,CITY OF 09/07/2016 Regular 0.00 65.70 29927 hra-1113 MONROE MOXNESS BERG PA 09/15/2016 Regular 0.00 13,065.40 29928 hra-1601 PASSAU LANDCARE INC. 09/15/2016 Regular 0.00 540.00 29929 hra-1933 SEVENICH,BUTLER,GERLACH&BRAZIL 09/15/2016 Regular 0.00 5,818.75 29930 hra-203 BOLIN,PAUL 09/15/2016 Regular 0.00 364.51 29931 hra-311 CENTER FOR ENERGY&ENVIRONMENT 09/15/2016 Regular 0.00 37,550.00 29932 Bank Code APBNK-HRA Summary Payable Payment Payment Type Count Count Discount Payment Regular Checks 8 6 0.00 57,404.36 Manual Checks 0 0 0.00 0.00 Voided Checks 0 0 0.00 0.00 j Bank Drafts 0 0 0.00 0.00 EFT's 0 0 0.00 0.00 8 6 0.00 57 404.36 9/15121)7.6 9:10:07 AM 1,,ge 1 of 2 Check Report City of Fridley, MN By Check Number if( .. ..._ . q. ,, Date Range: 09/19/2016 -09/28/2016 Fridley Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Bank Code:APBNK-HRA-APBNK-HRA hra-623 FRIDLEY,CITY OF 09/21/2016 Regular 0.00 61.45 29933 hra-1601 PASSAU LANDCARE INC. 09/28/2016 Regular 0.00 540.00 29934 hra-1703 QUICKSILVER EXPRESS COURIER 09/28/2016 Regular 0.00 24.02 29935 hra-501 E.C.M.PUBLISHERS,INC. 09/28/2016 Regular 0.00 201.25 29936 hra-505 EHLERS&ASSOCIATES,INC 09/28/2016 Regular 0.00 230.00 29937 hra-612 FINANCE AND COMMERCE 09/28/2016 Regular 0.00 47.46 29938 Bank Code APBNK-HRA Summary Payable Payment Payment Type Count Count Discount Payment Regular Checks 7 6 0.00 1,104.18 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 7 6 0.00 1,104.18 9128!2016 2:0(:O6 PM Page 1 of 2 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION SEPTEMBER 1,2016 CHAIRPERSON PRO TEM Gabel called the Housing and Redevelopment Authority Meeting to order at 7:00 p.m. MEMBERS PRESENT: William Holm Pat Gabel Stephen Eggert Gordon Backlund MEMBER ABSENT: Lawrence Commers OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Wally Wysopal, City Manager Shelly Peterson, Finance Director/Treasurer Jim Casserly, Development Consultant Greg Johnson, City Accountant Action Items 1. Approval 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 the July 14, 2016, Meeting Minutes. MOTION by Commission Holm to approve the minutes. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. Resolution Adopting a 2016 Tax Levy Collectible in 2017. Paul Bolin, HRA Assistant Executive Director, stated the Minnesota State Statutes authorize housing authorities to levy properties within their community to support their housing and redevelopment efforts. That levy is equal to .0185 percent of estimated market value. Based on an estimated market value of$2,207,363,400, the 2017 levy will allow the Authority to collect $408,000. The impact this has on Fridley taxpayers is if their home is worth $150,000, it would cost $27.75. If someone owned a$1 million commercial property, it would be $185.00. Housing and Redevelopment Authority Meeting of September 1,2016 2 Mr. Bolin presented a graph showing historically where the levy amounts have been over the past ten years They are collecting $11,000 more this year than they did last year. The amount is about $92,000 less than they collected in 2009 and 2010. It typically takes about two years for changes in market value to really show up in the levy. The big jump between 2007 and 2009 was when the Legislature changed the amount that authorities could levy. They increased that percentage just slightly. It made quite a bit of difference. That reflected the property values that were increasing in 2005, 2006, and 2007. That is where the big jump came from and then there was the decline from 2010 to 2013 which were affected by the 2008 crash. It is turning around, and looking at some of the numbers for next year, they should see another increase. Mr. Bolin stated staff recommends the approval of the resolution in the HRA's packet. This item does require Council action, and that is set to take place on Monday, September 12. Once Council acts on it, the levy is then certified. It will be forwarded to the County by September 15. Commissioner Backlund asked if they ever split the $480,000 into private property and commercial/industrial, so they know what the split is between the two. Mr. Bolin replied, he does not know what that split is. He thought Ms. Peterson might have that information. Commissioner Backlund stated he is just curious because, does that not have an effect on what they give the central taxing district under fiscal disparities is one and the other is the common base that is redistributed from an industrial standpoint out to everybody in the seven-county area. j Shelly Peterson, Finance Director/Treasurer, stated as to fiscal disparities, she could take the $408,000, look at where their market values are right now, determine how much of that is commercial, and give them an estimate of approximately how much of the levy is paid for by commercial customers vs. residential. Commissioner Backlund replied, and he is just asking approximately. Ms. Peterson replied staff can provide the details for what makes the estimated market values. MOTION by Commission Backlund to adopt HRA Resolution No. 2016-06. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. Columbia Arena Redevelopment TIF District Creation. Paul Bolin, HRA Assistant Executive Director, stated this item is to create Tax Increment District No. 23. This site includes the former Columbia Arena, the Public Works site, the Fire Training Center, and the eastern two-thirds of a park in that neighborhood. Housing and Redevelopment Authority Meeting of September 1,2016 3 Mr. Bolin stated as they are aware, there has been discussion of potentially putting a City campus on a portion of this site. If that does happen, that portion would be taken out of the Tax Increment District. Mr. Bolin stated staff is asking for the HRA to adopt a resolution that will modify the City's redevelopment plans, the TIF plans for the existing districts, and the modifications incorporating the project costs that are projected for this project. It also reflects the additional bonding authority the HRA would have as a result of adding this district to its redevelopment program. The District is going to be necessary to assist with what staff estimates to be over $14 million of extraordinary development costs for things such as demolition and environmental remediation. There will also be some geotechnical soil corrections, and utilities and roadways that need to be installed and in some cases, relocated. Mr. Bolin stated staff has based the TIF plans assumptions. In this case, they are assuming the site will be built out over the next five to six years. When it is all completed, there will be 15 patio homes; 30 townhomes; 360 senior housing units; 280 market-rate units; and up to about 15,000 square feet of retail. Mr. Bolin stated once that is all constructed, it would have a value of about $75 million and would generate approximately $24 million in increment over the life of the district. The $24 million would have a present value of about$13.5 million. Mr. Bolin stated staff recommends approval of the resolution modifying the existing TIF plans and creating the new TIF District No. 23. The City Council will hold a public hearing on this and be asked to adopt a similar resolution on Monday, September 12. CHAIRPERSON PRO TEM Gabel asked if they put a road in and it will be used by both the neighborhood and City staff, how would they determine if that was eligible. Mr. Bolin replied public roadways are eligible. Those are one of those typical costs that they assist with. A lot of times there are utilities that need to be moved and installed as part of a roadway going in. Those are TIF eligible. What would not be eligible would be, i.e., a driveway in the municipal campus portion of a development. Everything that would be TIF eligible will be really those kinds of costs that the Authority has assisted other projects with. Commissioner Eggert asked Mr. Casserly to talk about the timing of creating this TIF district and the flexibility they have going into the future as they explore development there. Jim Casserly, Development Consultant, replied this is a multi-phased, multi-year development. They anticipate in Phase I which hopefully will commence next year, they are looking at 15 owner-occupied homes, because that area is essentially ready to go with a minimum amount of public improvements that are needed. Phase II requires some additional infrastructure. They need to have a lot more investment in this site to make Phases II, III, IV, and V work. They have really spread out the development and they are conservative with their timing, which is why there are five phases spread over a number of years. Housing and Redevelopment Authority Meeting of September 1,2016 4 Attorney Casserly stated they are a little bit expansive on what they think will actually go into the development because, when you create a district, you are really limited on the income you can spend based on what goes into your plan. They always like to think, as expansively as they can to shape the plan. They try to be as conservative as they can when they think increment will actually occur. Attorney Casserly stated it is a trade-off If they move all these numbers up a couple of years, there would definitely be more increment generated; however, you may not have the kind of value that they are hopeful will be there. Attorney Casserly stated they try to build in some flexibility in how they think the development will occur. Also, they have deferred the collection of increment (just like they did on their last two districts), for a year or two; and that gives them an opportunity to have a longer phasing time. What they are doing in this district is really what they did for Gateway Northeast because they anticipated that would take some time to build out. In fact, it is going very well. In their original analysis, they thought it was going to take longer. They do not know when Phase III will occur. However, the first two phases are happening pretty quickly. They really try and build in as much time as they can just because history has taught them that these things do not go so smoothly. Commissioner Holm stated he noticed there are some assumptions built into the TIF District as to what they will have in Phases I and II--townhomes and patio homes. However, they have not received any information from developers yet on how that may occur. He asked if they were committed to proceeding with Phases I and II as outlined, or if they had some flexibility in modifying that in the event they find developers who have some other ideas that might be better for the City and for the HRA. Attorney Casserly replied this document does not govern how the development occurs. This is simply the best guess as to the kind of development that will occur. They are not sure of the timing of the development. They just made what they thought were reasonable assumptions based on some early site plans that have been put together. There is in no way a commitment on what is going to occur. That is all subject to the normal Council overview and permitting process. When any developer comes in to work with the HRA, they exercise their normal oversight and how they want to assist with the development. It may be in a completely different phasing or structure. Attorney Casserly stated what really has happened here is they know they made a very substantial investment in this site already and will be asked to make additional investments. This allows the HRA to recapture the investment they have already made in the site and it gives them the ability to put in some additional infrastructure and improvements to get a higher quality and more dense development than what would normally occur. They have already invested several million dollars into this site. Creating this district allows them to recapture that money and to repay their general fund. However, it does not commit to this type of timing. This is just what they have to do in order to have some understanding of the kind of revenue that would be generated. Housing and Redevelopment Authority Meeting of September 1,2016 5 Commissioner Eggert asked, by creating the TIF District in advance, what is the impact on the development community. Attorney Casserly replied it shows that they are very serious about trying to develop this site. Also, it allows them to be creative in their dealings with developers because they already created the district and they are in a position to assist. What will probably happen is there are geotechnical issues that are very substantial on this site, and they do not want to spend any more money. They already have several million dollars into it, and they are going to be putting in roads and other kinds of infrastructure. Attorney Casserly stated the development community is going to come in and say they love the site and will pay $8,000 a unit but, unfortunately, it is going to cost them $6,000 to do the geotechnical work. The HRA is in a good position to deal with all of the issues. Attorney Casserly stated they have the flexibility with their sales. They need the increment to reimburse the HRA for the expenditures it already made and will continue to make to get the site prepared. MOTION by Commissioner Holm to adopt HRA Resolution No. 2016-07. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. Authorize RFP for Private Development—Columbia Arena. Paul Bolin, Executive Assistant HRA Director, stated over the past several months, the City has spent a great deal of time developing different layouts for the potential City campus on the former Columbia Arena site. Plans are now far enough along that they can start to have some real conversations with developers about the types and amount of private development that can happen on the remainder of this site. Mr. Bolin stated they did start having some discussions of the potential use of the private development on this site back in the spring of 2015 when they met with the Corridor Housing Initiative Group at the Community Center. They had a good cross section of residents at those meetings, and what they told them is on the arena site and the property surrounding it, they would like to see a mix of housing and some public uses. By the time they got to the end of the fourth meeting, there was a lot of discussion about potentially putting a city hall and a combination of patio homes and some multi-family on this site. Mr. Bolin stated the City has spent time looking at the City campus portion and how that would fit on the site. However, really all of the potential and proposed private development on this site has really been a combination of what came out of the HCI meetings, staff looking at what could potentially fit on this site, and having a number of informal discussions with different developers about this site. Housing and Redevelopment Authority Meeting of September 1,2016 6 Mr. Bolin stated while that has been very helpful, if you ask any developer if they would be interested in building on this site, they are going to tell you, yes, without even looking into it because they do not want to be excluded from an opportunity to build on this site. They have had all positive feedback from the development community so far, but they have not actually gone out to formally solicit proposals and to hear from these different developers what they would build, where they would build it on this site, and when they would build. They have not heard what type of assistance they would want or need from the City, and they have not had any discussions about what they may be willing to pay for on different portions of this site. Mr. Bolin stated they are now at a point where the City campus footprint and that pond are fairly well laid out. They have some idea now of exactly what they have available land-area wise for private redevelopment. Now would be a good time to go out. They also need to make some decisions by next spring as to where some of the roadways should go and where utilities should be run. Mr. Bolin stated they could spend a lot of money trying to guess where a lot of these things should go. To avoid that really what staff is looking for tonight is the authorization to go out with a formal solicitation to the development community and ask them those questions. Mr. Bolin stated in the memorandum, he referred to it as a Request for Proposals (RFP). Attorney Casserly and he have had some discussions; it may end up being a Request for Qualifications or some hybrid approach because there are a number of things they want to really judge these developers on. There is really no clear-cut way to get all of this information; an RFP or an RFQ would work. There is probably some hybrid method that would work better. Staff will be working with Attorney Casserly to put that together. Mr. Bolin stated this site is large enough that he does not know if they will end up with a single developer that can do all of the different types of housing that could go on this site, or if it is going to be teams of developers that would partner together to work on this. That is what staff wants to find out. Get out into the market place, share with the development community what the soil conditions are. They have got a lot of soil reports they have done. Share with them the different environmental reports they have had done as well. Share some of the other site constraints. Mr. Bolin stated there is a Met Council sewer line that runs there. In most of the drawings that have been put together, the parkway is right over the top of the pipe. That is probably the best place to have that roadway so you can always access that pipe if there are issues, but they want to get things out there and get a development partner on board if they can by the end of the year. They would like to work with them to refine the ideas that have been discussed so far. As Commissioner Holm mentioned, a developer may come with something that none of them thought of. Maybe it is possible to get more of a certain type of housing on this site or maybe there is a clever way to squeeze more retail in there. They are to the point now where he does not think they can keep guessing anymore as to what might happen development-wise. It is time to go out and find a partner who will work with them and work with the City to move this forward. Housing and Redevelopment Authority Meeting of September 1,2016 7 Mr. Bolin stated they have put together a suggested timeline. Staff would like to get this document out this month. They already have a good start on the bones of the document and the supplements that will go with it. They would like to give the development community about a month to get back to them. Then ideally, staff would come back to the HRA in November with a recommendation or maybe recommend a couple developers the HRA would interview. Typically for an RFP of this scope, it might not be a bad idea to have them interview the top two or three developers. Mr. Bolin stated staff thinks they could have somebody on board, and they know the patio homes in particularly could go up next week if they were in a position to tell somebody to go ahead and start. There is demand for those and there is not a lot of infrastructure that really needs to go in. Also,the soils on that end will be fine for those slab, on-grade patio homes. Mr. Bolin stated staff recommends the HRA authorize staff to move forward and work with Attorney Casserly in getting the right document, whether it is an RFP, an RFQ, or a hybrid out to the development community later this month. They started out back in May of 2015 with some ideas that came out of the Corridor Housing Initiative meetings and kind of continued to use these as they continue to talk about the potential for redevelopment on this site. This is kind of the latest reiterations that show the City campus on the north/northwest side of the property. However, they do not know as far as private development goes if this is the best layout. Chairperson Pro Tern Gabel asked how he saw this tying together with the City's development. It seems like the two cannot be isolated from each other. While they are separate, they still need to work together. Mr. Bolin replied they are to that point right now. The City is getting fairly far along in developing their site. However, there are things like the pond. Anything the HRA builds on, the private side of things, they are going to need to tie into that pond. There are utilities that are going to serve both sites. There is a roadway that really needs to go through and is going to be a benefit to both sides, but it is definitely needed by the private development to have access to this site. They have reached the point that the sooner they can get somebody on board that can start working with the City's developer (McGough Construction) and start coordinating some of these things, it is going to save all of them money and time in the long run. Commissioner Backlund stated, first, they changed the way the pond is laid out. He thought they originally looked at reallocating the original pond location because it was somewhat simple. It was just a fill-in. It looks to him like it is complicating it. He assumes that when staff is issuing whatever the document is, they will give some historical information as to what they know about what is underneath the surface of the ground. Commissioner Backlund asked, second, having homes on a slab, as opposed to allowing a development of different kinds of homes, instead of cookie-cutting them all, would that give them a better feeling for a diversity of how the things look instead of having 18 houses or 15 houses there that all look alike, all built on a slab, facing pretty much in a row. Will there be an opportunity in supplying the RFP, if it is the right proposal process, to look at different ways in which they could respond to give them a better idea? Housing and Redevelopment Authority Meeting of September 1, 2016 8 Commissioner Backlund said third, there is a tremendous amount of hard surface parking. That is probably not the most desirable use of surface as opposed to at least having a parking garage concept. Commissioner Backlund stated, finally, he looks at the schedule and today is the 1st and the bid is the 15th. If they have not already had a significant start, can staff look at issuing an RFP that would be significant enough so that somebody could do a good job at responding because it is a difficult job to incorporate all of these things and make them readable and understandable. He thought this was a fairly tight schedule staff has given them. Mr. Bolin replied, in regards to the pond, there has been a great deal of time spent by Wenck engineers working with the City engineers trying to design the pond so it has the capacity that would be needed for this development. He does not see a lot of changes to the pond from the present design. Commissioner Backlund stated staff changed the orientation from the last one he looked at. Mr. Bolin replied they have changed the tail end of the pond that will run on the east side. This is what they are moving forward with at this point. This design has the capacity to handle the runoff. It will actually treat and recirculate water. They spent a lot of time designing this. The pond gets more natural as it moves to the east. Mr. Bolin stated in regards to the patio homes, that is something they have heard about for the last two in the comprehensive plans they have done. There is a real demand in the community for patio homes. If Commissioner Backlund looks at some of the different commissions in the City, they have lost a number of commissioners to Blaine because Fridley does not have patio homes for people to move into. That is a need. That is something they have heard in the comprehensive plans, at the HCI meetings, that is something that the neighborhood just to the south of this area really supported as a good transition or buffer to higher density further north on this site. They may not be cookie cutter. That is part of this whole process. They want developers to tell them what they are thinking. If they do not like something as a group, they will have a lot of input on this because they are the ones holding the land and any assistance. There will be an opportunity to really help shape that. Mr. Bolin stated as far as the schedule, staff does have a fairly well roughed out draft of the document. They do have all of the environmental studies that the City has done. There has been a lot of work that has gone into this already; therefore, he is not concerned about the timeframe. They will be able to get that done. Where they may run into things that may take a little more time are if in November they have four or five really good developers, it may take some time and/or a special meeting or two, to give them an opportunity to sit down and meet with those developers. However, as far as getting this out to the development community, staff is ready to do that. The development community is just waiting for them to do that. Mr. Bolin stated as to the surface parking that is shown on this plan, again, this is really just staffs best guess as to one potential layout for this site that avoids deck parking. The design shows about 450 rental units, and you would be able to park all of those without building a Housing and Redevelopment Authority Meeting of September 1,2016 9 parking deck. That is all they are trying to show on this. Staff is not taking this out to the development community and saying, build this. This was just really more to show what could go around the proposed municipal center. Commissioner Backlund stated with regard to the patio homes, at least when he was part of Met Council a long time ago, it did a study and Fridley was one of the highest cities that had no high-end housing. This is one opportunity when the City could influence that. He does not see an effort to do something like that so they have more mixed housing, some affordable housing, some moderate housing, some middle structures, and some high-end housing. He encourages staff to consider that as part of at least the evaluation process in determining what would be the final look. Commissioner Backlund stated with regard to the parking lot, Cielo, for example, did a nice job having structured the first floor as parking to minimize the amount of surface parking lot in a small footprint. This looks like it has something similar to that available to it. He encourages staff to consider with the look see at that. Commissioner Eggert stated to him it appears this is possibly a backup plan. Obviously there are some soil conditions here which impact structure and parking underneath buildings, and that could play a role in the cost of pulling this all together. Commissioner Backlund stated but they should provide the latitude for creative processes and thoughts and then be able to develop a ranking process to give some consideration and some clever ideas or answers some creative thought, so they can possibly get the best alternative for a great opportunity for someone or some group of people to provide this development. Commissioner Eggert stated given there may be some uncertain soil conditions that will play a role in how this residential parking will be played out economically to both the developer and the HRA and the TIF District. Chairperson Pro Tem Gabel stated she thinks that is true because one of the things pointed out at those meetings was it is possible that parking garages would be very difficult to put in there. She actually likes that suggestion too. It is something they could certainly ask about. Mr. Bolin stated through this process, they are not asking developers, how would you build these for us? They are asking them what would they build, where would they build it, because they know this may not be the best site plan. That is really what they are trying to get out of this. Chairperson Pro Tem Gabel stated so this just an idea, a concept, so they have something saying here is some potential, give us some more potential. Mr. Bolin replied correct. One of the patio home builder's homes start at about $310,000. There is an opportunity, if the market will support these things, to get some higher-end patio homes. He does not think anybody is seeing these as starter homes. They are talking something that will compete with Blaine and keep people in town. Housing and Redevelopment Authority Meeting of September 1, 2016 10 Commissioner Backlund stated words are important. When you are talking patio homes to common people such as himself, when he hears the words "patio homes," that thought process is different when he hears $310,000. That is more than just a little patio home sitting on a garage slab. It is important to have the description as to what the word means somewhere along when they are sending these things out so there is an understanding. MOTION by Commissioner Eggert to authorize an RFP for Private Development — Columbia Arena. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. Informational items 1. Housing Loan Program Update Mr. Bolin stated this past month the City issued two loans out of the Revolving Loan Program. One was deferred and was a Minnesota Finance Agency loan that they used some of the HRA dollars as leverage to obtain. For year to date, there are now 14 loans which is twice as many as they did all of last year. Mr. Bolin stated the Remodeling Advisor did 3 visits in August for a total of 9 visits year-to- date. Just as a comparison, they did 3 all of last year. As to the Home Energy Squad, in August they did 16 visits, which is 34 for the year to date. That program continues to be strong and receives positive feedback. If it the weather cools down, they will see interest in that go up again this fall. CHAIRPERSON PRO TEM Gabel asked if they have had any interest in the business loans. Mr. Bolin replied they have. There have been a few projects in Fridley the last few months, but none of them needed HRA funding or qualified for its funding. However, there has been activity, and today they met with another business owner who may be a potential borrower. Commissioner Holm asked about mobile homes? Mr. Bolin replied they have not had any takers there either. Staff is going to try and get out and meet with them and push the program a little bit more. ADJOURN: MOTION by Commissioner Backlund to adjourn. Seconded by Commissioner Eggert. Housing and Redevelopment Authority Meeting of September 1,2016 11 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:51 P.M. Respectfully submitted, Denise M. Johnson Recording Secretary y ACTION ITEM TrifdleHRA REGULAR MEETING Fri OCTOBER 6, 2016 Date: September 29, 2016 To: Wally Wysopal, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subject: Home & Garden Show Admin. Contract Background The Fridley HRA has been the fiscal agent for the Home & Garden Show since its inception 19 years ago. The Cities of Mounds View and Blaine have been partners in sponsoring the show since its inception and Columbia Heights joined the show last year. The revenues from booth rentals have typically paid for all of the expenses associated with the show. Since 2005, the group has contracted with Marsha Wagner (dba- Castle Visions) to perform the administrative tasks necessary for producing the Show. Marsha has become a valuable asset to those involved with the show. The Home & Garden Show planning group would again like to contract with Marsha Wagner for the 2017 Home & Garden Show. Marsha's rates are very reasonable and the show generates adequate revenue to cover the cost of contracting with Marsha. Staff Recommendation Staff recommends that the HRA approve the contract between the HRA and Marsha Wagner/Castle Visions to provide assistance with the 2017 Home and Garden Show, as detailed in the attached contract. CV Draft—9/20/16 CUSTOMER CONTRACT CLIENT NAME: Housing and Redevelopment Authority in and for the City of Fridley, 6431 University Avenue N.E., Fridley MN 55432, 763-572-3591(hereinafter referred to as"Client") CONTRACTOR: CastleVisions, 333 Washington Avenue North, Suite 107, Minneapolis, MN 55401, 612-338-2122 (hereinafter referred to as"Contractor") SCOPE OF SERVICES: Contractor will provide administrative services as described in the attached Schedule 1 —Services and Compensation and other administrative duties agreed to between the parties during the term of the contract, all of which relate to the coordination of the 2017 North Metro Home and Garden Show. RATES: Contractor shall bill Client at the rate of$63.00 per hour for administrative services provided during the term of this contract, as further described in the attached Schedule 1 —Services and Compensation. Rush projects or work performed on weekends or evenings(excluding services provided on the day of the Show)will be performed at the rate of 150%of the hourly rate of the rush project. The rates set forth in this Agreement will not be increased for at least one year from the date of the agreement. Contractor reserves the right to increase its rates beyond that date with no less than 30 days' advance written notice. Contractor will invoice Client on a monthly basis for the duration of the project. CONFIDENTIALITY: Contractor will keep confidential any and all documents of Client(electronic or paper). Any and all documentation, information, files(electronic or paper)will be returned to Client upon completion of each project unless directed otherwise by Client. APPOINTMENTS: Client shall deliver and pick up work by appointment only. Client shall pay a fee of $63.00 for missed appointments (including over 1/2 hour late) unless Contractor is notified at least one hour prior to the appointment. CONSULTATION: Time spent conferring about Client's project shall be billed at the hourly rate of $63.00. CHARGES AND PAYMENT: Work shall be estimated according to the Industry Production Standards established and published by the Association of Business Support Services International Inc. and billed at the rates described in Schedule 1. Because of the varying nature and unpredictability of different projects, it is not possible to give formal estimates. Payment is due when client picks up the work, whether in draft or final form (unless otherwise agreed to by Contractor). Payment for first-time customers should be made in cash unless otherwise arranged. A fee of up to$100 may be charged for any returned check. Contractor shall retain work until payment is received. In the event of changes to the scope of work or other factors outside of Contractor's control, Contractor shall reserve the right to renegotiate this Agreement and collect for all services performed up to the date of renegotiation. PROOFREADING &REVISIONS: Work will be copy edited in pen on Client's rough draft unless Client specifically requests otherwise. An updated printout of Client's document shall be returned to Client for proofreading, and the final copy printed only after Client approves the draft. Corrections and revisions shall be billed at the regular hourly rate. Final responsibility for proofreading and approving the final draft lies with Client. Contractor cannot be held liable for typographical omissions, content, etc. North Metro Home Garden Show Admin Contract-2017.doc 9/20/2016 Client will include a hard (printed) copy of the most recent version of the document when submitting work for revision, making any revisions directly on the copy in red pen. Client will also keep a copy at Client's office for reference in case of telephone questions. REPRESENTATIONS,WARRANTIES AND INDEMNIFICATION: Client shall indemnify, defend and hold Contractor, its agents and employees, harmless from loss, damage, liability, claims, demands, suits, and expenses, including but not limited to reasonable attorneys'fees, based on fines or penalties resulting from any failure on the part of Client to comply with any laws, ordinances, rules or regulations or failure to obtain licenses or permits as may be required on any patent, copyright, trade secret, or other intellectual property or contract rights of any person or entity. In the event that any of the services performed by Contractor are determined to be infringing, Contractor shall, at its own expense, modify or replace the same so that it is not infringing, provided that the replacements and modifications shall perform substantially the same as the replaced items. STORAGE: Files will be stored on Contractor's computer for one year at no charge. TERM AND TERMINATION: This Agreement shall commence on September 1, 2016, for one year and may be terminated by either party upon two(2)weeks written notice to the other without cause and further provided that either party hereto may terminate this Agreement immediately upon a breach by the other of its duties hereunder. In the event of termination, Client shall pay contractor for all hours and expenses accrued up to the date of termination. In the unlikely event litigation is commenced between the parties of this Agreement, the party prevailing shall be entitled, in addition to other relief, to a reasonable sum for attorney's fees. APPROVED: CASTLEVISIONS By t/04—e---- G1, 7 C Marsha Wagner President Date: / - HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY By: By: Its: Chairperson Its: Executive Director Date: Date: -2- SCHEDULE 1 SERVICES AND COMPENSATION A. Contractor will perform the following Services, as requested by Client, subject to the terms and conditions of the Customer Contract: 1. Administrative services related to the coordination of the North Metro Home and Garden Show, including the following specific duties: a. Prepare Planning Committee meeting agendas and minutes b. Vendor registration: create and mail registration materials and receive/track registrations c. Coordinate marketing and advertising efforts d. Event logistics e. Sponsor solicitation f. Coordinate workshops g. Assistance at event B. Contractor will provide no more than one hundred seventy(170) hours of services for client during the term of this contract. C. Payment for Services shall be at the following rates during the term of this Agreement: • $63.00 per hour, not to exceed $10,710.00 during the entire term of the contract. D. Reasonable expenses incurred by Contractor in performing Services will be subject to review and approval by Client. These costs include postage, printing, signs, and other out-of-pocket expenses. E. All fees and approved expenses will be paid within thirty (30) days after receiving Contractor's invoice. (g/ ACTION ITEM i'cFna�� HRA MEETING OF OCTOBER 6, 2016 DATE: September 27, 2016 TO: Wally Wysopal, City Manager FROM: Scott J. Hickok, Community Development Director Paul Bolin, Assistant Executive HRA Director SUBJECT: MN DEED Contamination Cleanup Grant Application INTRODUCTION Hyde Development has again requested the Authority's assistance to obtain a grant through the Minnesota Department of Employment and Economic Development's "Contamination Cleanup" grant program. Hyde has successfully obtained grants from this source, for each of the previous three phases of the project. At this time, Hyde Development has a deadline of November 1st to apply for this grant. DEED's Contamination Cleanup program assists with contamination investigations and cleanup of contamination in accordance with a Minnesota Pollution Control Agency approved response action plan (RAP). This program provides funding to sites that are the most likely to be redeveloped in the very near future and its goal is to clean up contamination in order to allow a site to retain and create new jobs. This project has proven, through its first three phases, that it can meet the goals of the program. RECOMMENDATION Staff recommends approval of the attached resolution supporting Hyde Development's application for a grant through DEED's Contamination Cleanup Grant Fund. HRA RESOLUTION 2016 - RESOLUTION APPROVING APPLICATION TO ENTER INTO FUNDING AGREEMENT WITH THE DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT (DEED) FOR GRANT ASSISTANCE FOR THE 4800 EAST RIVER ROAD REDEVELOPMENT BE IT RESOLVED that the Housing and Redevelopment Authority in and for the City of Fridley (hereafter Fridley HRA) act as the legal sponsor for project contained in the Contamination Cleanup and Investigation Grant Program to be submitted on November 1, 2016 and that Assistant Executive Director is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of the Fridley HRA. BE IT FURTHER RESOLVED that the Fridley HRA has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration. BE IT FURTHER RESOLVED that the sources and amounts of the local match identified in the application are committed to the project identified. BE IT FURTHER RESOLVED that the Fridley HRA has not violated any Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the state, the Fridley HRA may enter into an agreement with the State of Minnesota for the above referenced project(s), and that the Fridley HRA certifies that it will comply with all applicable laws and regulation as stated in all contract agreements. NOW, THEREFORE BE IT FINALLY RESOLVED that the Chairperson and the Executive Director,are hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 6th DAY OF OCTOBER,2016. LAWRENCE R. COMMERS, CHAIRPERSON 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 October 6, 2016. DEB A. SKOGEN, CITY CLERK ACTION ITEM LIMP HRA MEETING OF OCTOBER 6, 2016 DATE: September 28, 2016 TO: Wally Wysopal, City Manager FROM: Scott J. Hickok, Community Development Director Paul Bolin, Assistant Executive HRA Director SUBJECT: Met Council Tax Base Revitalization Account Grant Application INTRODUCTION Hyde Development has requested the Authority's assistance in obtaining another grant through the Metropolitan Council's Tax Base Revitalization Account (TBRA) grant program, for Phase 4 of the Northern Stacks Redevelopment project.. At this time, Hyde Development has a deadline of November 1st to apply for funding in this Met Council grant funding cycle. They are working with Braun Intertec in developing the final budget for Phase 4 to identify the exact dollar amount for this request. The TBRA awards $5M annually to clean up contaminated land for redevelopment. The goals of the program are to clean up polluted sites, increase the local tax base, add jobs and support projects that are "poised for development". This large redevelopment project meets all of the goals of the TBRA program and has received this funding for the first three phases of the project. RECOMMENDATION Staff recommends approval of the attached resolution supporting Hyde Development's application for a grant through the Metropolitan Council's Tax Base Revitalization Account Grant Fund. HRA RESOLUTION 2016 - RESOLUTION AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION TO THE METROPOLITAN COUNCIL FOR THE TAX BASE REVITALIZATION ACCOUNT FOR THE REDEVELOPMENT OF 4800 EAST RIVER ROAD WHEREAS, the City of Fridley is a participant in the Livable Communities Act's Local Housing Incentives Account Program for 2016, as determined by the Metropolitan Council, and is therefore eligible to make application for funds under the Tax Base Revitalization Account (TBRA); and 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 is consistent with goals of the TBRA; and WHEREAS the Fridley Housing & Redevelopment Authority (Fridley HRA) has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration. NOW, THEREFORE BE IT RESOLVED that upon approval of its application by the Metropolitan Council, the Fridley HRA may enter into an agreement with the Metropolitan Council for the above referenced project(s), and that the Fridley HRA certifies that it will comply with all applicable laws and regulation as stated in all contract agreements. NOW, THEREFORE BE IT FURTHER RESOLVED that the Chairperson and the Executive Director, are hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 6TH DAY OF OCTOBER,2016. LAWRENCE R. COMMERS, CHAIRPERSON ATTEST: WALTER T. WYSOPAL—HRA 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 October 6, 2016. DEBRA A. SKOGEN, CITY CLERK Fridley HRA Housing Program Summary Cover Page October 6, 2016 HRA Meeting Report Description Loan Summary Report Loan application activity (e.g. mailed out, in process, closed loans) for year- to-date. Also shows the number of field appointments scheduled and completed for the Remodeling Advisor Services administered by Center for Energy and Environment. Home Energy Squad E-mail detailing recent activity and year to date. H:\—Paul's Documents\HRA\HRA Agenda Items\20I6\October 6,2016\Housing Program Cover October 6,2016.docx FRIDLEY Loan Summary Report Activity for Period 8/16/16 -9/15/16 cee:' Center for Energy and Environment Application packets requested/mailed: This period: 1 Year-to-Date: 15 Residential Advisor Visits: This period: 2 Year-to-Date: 11 Loans currently in process for residents in your City/Neighborhood: 9 Closed Loans This period: Year-to-Date: Fridley Units Units 0 0 Closed End 26,000.00 1 289,115.60 13 Last Resort 0.00 0 0.00 0 Last Resort Emergency 0.00 0 10,000.00 1 Deferred Mobile Home Closed End 0 0 Total 26,000.00 1 299,115.60 14 Leveraged Funds This period: Units Year-to-Date: Units MHFA FUF 2,160.00 1 34,035.00 2 Total 2,160.00 1 34,035.00 2 Types of Improvements Financed YTD #of Projects %of Total Types of Properties Financed YTD # %of Total Single Family Residence 16 100.00 Additions/Finishing off unused space 1 5.00 Bathrooms 1 5.00 Driveways 1 5.00 Foundations/Basement 1 5.00 Garage 1 5.00 Heating System 1 5.00 Kitchens 2 10.00 Landscaping 2 10.00 Other Exterior Improvements 2 10.00 Other Interior Improvements 2 10.00 Plumbing 2 10.00 Roof 1 5.00 Siding,Stucco, Exterior Paint 1 5.00 Windows,Doors,Storm Windows,Storn 2 10.00 Bolin, Paul From: Stacy Boots Camp <sbootscamp@mncee.org> Sent: Tuesday, September 27, 2016 2:48 PM To: Bolin, Paul Subject: Re: HES Visits in last month Hi Paul, Numbers are looking good for September! HESE Participating cities city Year of ho . Month of h.. visittype_... Fridley Grand 2016 Januar,' Enhanced 10 10 Total 10 10 - February Enhanced Total 5 5 March Enhanced 2 2 Total 2 2 May Enhanced otal 1 1 June Enhanced 5 Total 5 5 Jtaly Enhanced Total 5 August Enhanced 2 Total 2 2 •- akitercat -4201 20 Total 20 20 Total co 50 Grand Total ;441, so Let me know if there is anything else I can get you. Thanks, Stacy Stacy Boots Camp ee ..,-,)c,rdinator I 612.244.2429 o rii ins r,-- rr,imdment 2 North 3rd /•Nve , Minneapolis, MN 55401 rO.Orq 1 INFORMATIONAL ITEM Fridley . 0. HRA REGULAR MEETING OCTOBER 6, 2016 Date: September 28, 2016 To: Wally Wysopal, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subject: RFQ Update — Locke Park Pointe (Columbia Arena Site) As authorized at last month's meeting, Staff released a Request for Qualifications (RFQ) to begin the process of selecting a developer/partner for private development around the proposed municipal campus. On September 16th the RFQ was made available to developers through a notice in Finance and Commerce and an email sent to developers that had previously expressed an interest in the site. At the time of writing this memo, 11 developers have requested copies of the RFQ and supporting documents be sent to them. There is a mandatory meeting on October 5th for those developers that wish to submit responses to the RFQ. We will have a better idea after that meeting as to which developers are truly interested in the project. RFQ's are due back at noon on Wednesday October 19th I u < � :. , r , . .. ..,. ... i A _ \, ,„„. ji.j I: ,10 iht : ,„„ , . ��pp 'a�^M�w+r�. 0........, . 411 A ,-,-=-- 1:I * r It ^I Me _.. -IL £ }r �! :6 . -4 _'� .._ Q Pt<Ifur V,In, .-'s,- 'a -`.„r= 111111, INFORMATIONALHRAREGULARMEETING ITEM $ r F Fridley OCTOBER 6, 2016 Date: September 28, 2016 To: Wally Wysopal, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subject: Existing City Hall — Future Disposition As the City considers relocating its essential services to the Columbia Arena site, consideration must be given to the disposition of the existing City Hall. In order to prepare for the potential sale of the current building, a survey of the site and title work has been completed, as well as a review of the development agreements with surrounding properties. Over the past few months there have been questions regarding the ownership of City Hall and the surrounding properties. Attached is a memo from Jim Casserly and Vickie Johnson outlining the parcel ownership and identifying some of the obligations/rights neighboring properties have to use these parcels. We are providing this information to give you an overview of the complicated issues we will be working through to dispose of this property if/when City services are moved to the Columbia Arena site. MONROE MOXNESS BERG TO: Wally Wysopal, City Manager, City of Fridley Scott Hickok, Community Development Manager, City of Fridley Paul Bolin, Assistant Executive Director, City of Fridley HRA FROM: James Casserly and Vickie Loher-Johnson SUBJECT: City of Fridley ("City") and The Housing and Redevelopment Authority in and for the City of Fridley("HRA")—Outline of Parcel Ownership and Property Rights FILE NO.: 09571-084 DATE: September 22, 2016 Wally, Scott and Paul: A. Please find attached the following: 1. Color coded aerial view of the parcels owned in fee by a) the City (outlined in blue) and b) the HRA (outlined in pink). This is utilized to orient the viewer to the ownership of the properties in question in relation to the structures located thereon. Please Note: The aerial photo was not taken from directly overhead, but instead at an angle from the south. As a result, the parcel boundary overlay with the buildings (i.e. the 6401 University Avenue NE building) appears to have a building "encroaching" over a parcel boundary line, however, this is a factor of the camera angle. The survey confirms that the buildings are constructed within parcel boundaries. 2. Color coded plat of Fridley Plaza Center which depicts the properties owned by the City and those owned by the HRA. The color coded plat also identifies a)the parcels of the HRA which are leased to third parties; b) the parcels which are subject to easements for particular uses (such as limited to a parking use); and c),the parcel upon which the HRA has option rights pursuant to the 1984 Contract for Private Redevelopment.' 3. Color coded First American Title Commitment (3"1 Supplemental). The documents referencing the limitations identified on the marked up plat have been similarly color coded. 1 These option rights are confined to a limited set of circumstances. There would have to first be a casualty event associated with the building, causing in excess of$100,000.00 in damage and the building owner will have then had to have made the determination not to rebuild-before the HRA would be able to exercise any rights to acquire the property. The limited circumstances of the option are noted here in order to provide an overview of the HRA and City property rights in the area. B. Lot/Block-Specific Items to consider: 1. Lot 2. Block 2. a. The parcel is subject to a non-exclusive parking and sign easement executed by the HRA in 2009, which easement benefits the adjacent Lot 1, Block 1 (Columbia Park Properties, LLP property/6341 University Avenue). - The above-referenced parking and sign easement document contains an ambiguity at Section 5 as to whether the easement is perpetual in nature or expires on 12/31/2059. This ambiguity will need to be resolved with Columbia Park Properties and a corrective document prepared and recorded. - The fee of this parcel is owned by the HRA. If it is the intention that the parking will be utilized by the future owner of the adjacent City parcels, a document will need to be prepared memorializing that the City parcels and future owners thereof have the non-exclusive right to utilize the parking located on Lot 2, Block 2, and this new document recorded. - The parking and sign easement provides at Exhibit B that the Grantor/HRA has signage rights for the top of the sign and for the content of the LED portion of the sign. As a result, the HRA "owns" these signage rights, as it owns the fee interest in this parcel. If it is the intention to have the parcel to the north benefit from this signage(i.e. the City parcels), then the HRA could assign, in a recorded document, its signage rights to an adjacent buildable parcel to the north, so the buildable parcel could benefit from the signage rights. 2. Lot 15, Block 1, and a portion of Lot 7, Block 1. This property is currently owned by the HRA and leased to Columbia Park Properties LLC (which owns the 6341 University Avenue building), for non-exclusive parking, egress and ingress under the terms of a 1982 lease which was been amended and restated in 1993. - If it is the intent that the City property is to be able to utilize this parcel in future for parking, ingress and egress, a document will need to be prepared, memorializing that the City parcels and future owners thereof have the non- exclusive right to utilize the parking areas on these lots (both levels), and ingress and egress to same. - The lease with Columbia Park Properties places certain specific obligations on the HRA (and does not indicate such obligations run with the land or to the successors and assigns of HRA). These obligations include: the obligation to remove snow within 4 working days after the tenant plows it to a certain area of the property; the lighting of all streets and the parking lot; all maintenance, seal coating, striping and resurfacing of the Option Parcel (with the requirement that it be seal coated and striped at least once every 4 years); the obligation to maintain lawns and shrubbery contained on the leased property; the obligation for paving and curbing replacement on the Option Parcel; the obligation to sweep the Option Parcel each spring and each fall; the obligation to operate and maintain the irrigation system which services the fee property owned by the tenant; the obligation to pay all real estate taxes and special assessments on the leased parcel; and the obligation to convey marketable title to the Option Parcel. The 2 lease should be amended (and such amendment or a memorandum thereof recorded) to indicate that the obligations of the HRA contained in the lease as amended run with the land and are binding upon the successors and assigns of the HRA, so that once the fee parcel that is subject to this lease and the lease assigned to such new owner, the obligations of the HRA under the lease terminate as of the date of such assignment. 3 The North 21 feet of the East 79 feet of Lot 6, Block 1. This is a small area, the general location of which is crosshatched in on the attached plat. The parcel is owned by the City. There is a Mortgage and a UCC filing referenced as an encumbrance on the title commitment, granted by an adjacent property owner, C08 Fridley MN LLC, ("C08") (the owner of 6499 University Avenue). Title has agreed that it will revise the title commitment to reflect that this Mortgage/UCC encumbers only the easement interest held by CO8 in the referenced property. Please note that C08 has an exclusive parking easement interest in this crosshatched area of the City parcel. Please also note: The City retains rights to below grade construction and use of the crosshatched area, per Document 2026989.001. 4 Portion of Lot 6, Block 1. The CO8 parcel has a perpetual easement with regard to the retaining walls and stairway located on a portion of Lot 6, Block 1. The approximate location of this easement area is highlighted in yellow on the attached plat. We have requested that the surveyor outline the boundaries of this easement in greater detail. 5. Portion of Lot 7, Block 1. The ingress/egress area located off of University Avenue, which is contained within a portion of Lot 7, Block 1 (owned by the HRA), appears to be utilized by the City owned lots adjacent thereto. If it is intended that the future owner of the City lots will be utilizing this ingress and egress area, an easement should be recorded against Lot 1, Block 1, and benefitting the City parcels, in order to preserve the ingress/egress rights to same. It is likely that the users/owners of the C08 property and the 6401 property utilize that access point as well and may be interested in memorializing such easement rights. C. Next Steps 1. We have requested an updated survey to reflect the revised title commitment, and have requested that the various leasehold and the portion of Lot 15 which is subject to the purchase option by the current tenant be outlined on the revised survey. This will allow the City and HRA to evaluate the exact boundaries and the rights the City and HRA own in each, accordingly. 2. Following receipt of the updated survey, discussions with City staff as to future uses, marketing, and disposition of the parcels and property rights. 4851-7896-8377,v.1 3 r�:' T f " i 4Y'" t"tis• rd'e .t w tl s' Y ,'d i '. -t.. d a - at s ; x �}e� yr tv.t `.� . l „ x a .r h V'�ti A. ft-,-_., i i ,:,::, ,:4:to4,,: ,:t. : • :-::•;,:-:;77.10, 1 T :, ., ..:,.a, :., , i :i : , .,.::. ,...,:fd: .• ,,,,,.1-4 { s k ,...,..,, ,. , , .. :. 1i, :: a. 4 ! .. . 'k `. i t '. . xs. 4. =.. ,i, ...t, ,.. P . , * r I i-' j ii rt I 1 to 0 II e ,, : . .,:',.646 , '41 ; . .."""i :71 1 ' '''' '''''' 'i ',":-, .;" ' ' '' .. ''''' : - - `' ,?. - i'I* '" d: ' ...;.. '''' 't '' '' .11C ' ‘,.7 .:1E-' (17 1.1$1 , --- - 04. . :',' Y _. ;,. t to ,i - ' _ .,y * 411.4.41/111M , ''''. .' .',6/1"" :6' " ' 1 11, g.":.....I , .. t ,. .. ",:,,,, . A'-,-776 -7', ''''. ' 3/_:6'' ''',-.4'' * j!..6 . t § ' f r,,_ 41 k , . # 1 e i d ' "r r y r . , j y • "y�'-o-. ate' , A+ . - 1 '' - ' .,-/'/-rf- f;"' I';''"- ,Z, "'- : '`'''. I- First American Title Insurance Company •. • Issued by its Agent, Land Title, Inc. 7 • sy 2200 County Road C West,Suite 2205, Roseville, MN 55113 is COMMITMENT 2as.>s 1tso 3rd Supplemental LT File No.522740 SCHEDULE A 1. Effective Date: August 5,2016 at 8:00 am 2. Policy or Policies to be issued: Amount a. ALTA Owner's Policy—6/17/06 TBD Proposed Insured: b. ALTA Long Form Loan Policy—6/17/06 Proposed Insured: -NONE- 3. The estate or interest in the land described or referred to in this Commitment and covered herein is: FEE SIMPLE 4. Title to the estate or interest in said land is at the effective date hereof vested in: 1,4ty of fri#44 a Minnesota municipal corporation tllotonittats ,1#1,11,1Iand 13,Biockj') and The Housing and Redevelopment Authority in and for the City of Fridley(as to Lots 7,15 and 16,Block 1 and Lot 2, Block2) 5. The land referred to in this Commitment is described as follows: See attached Exhibit A Abstract Property Anoka County,Minnesota Copyright 2006-2009 American Land Title Association. All rights reserved. 1111111111111111111 AMERICAN LAND TITLE The use of this Form is restricted to ALTA licensees and ALTA members y x euro, in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. , Page 1 of 8 First American Title Insurance Company Issued by its Agent, Land Title, Inc. 2200 County Road C West,Suite 2205, Roseville, MN 55113 COMMITMENT 3rd Supplemental LT File No.522740 EXHIBIT A Lot 6,except the North 21 feet of the East 79 feet, Lots 7,8„9,10,11,12,13,15 and 16,all in Block 1, Fridley Plaza Center,Anoka County,Minnesota and Lot 2,Block 2,Fridley Plaza Center,Anoka County,Minnesota and North 21 feet of the East 79 feet of Lot 6,Block 1, Fridley Plaza Center,Anoka County,Minnesota Abstract Property 11111111111111111 Copyright 2006-2009 American Land Title Association. All rights reserved. AME RICAN (AA()TIM The use of this Form is restricted to ALTA licensees and ALTA members AfSCK IA1141, in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. Page 2 of 8 First American Title Insurance Company Issued by its Agent, Land Title, Inc. 2200 County Road C West,Suite 2205,Roseville,MN 55113 COMMITMENT 3rd Supplemental LT File No.522740 SCHEDULE B Part The following requirements must be met: A. Pay the agreed amounts for the interest in the land and/or the mortgage to be insured. B. Pay us the premiums,fees and charges for the policy. C. Documents satisfactory to us creating the interest in the land and/or the mortgage to be insured must be signed,delivered and recorded. D. This is an Informational Commitment only. There are no requirements. Copyright 2006.2009 American Land Title Association. All rights reserved. P AMERICAN IAN!)I'1 r1.1 The use of this Form is restricted to ALTA licensees and ALTA members ,,,oc,Ar,o, in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. Page 3 of 8 First American Title Insurance Company Issued by its Agent, Land Title, Inc. 2200 County Road C West,Suite 2205, Roseville,MN 55113 COMMITMENT 3rd Supplemental LT File No.522740 SCHEDULE B Part II Schedule B of the policy or policies to be issued will contain exceptions to the following matters unless the same are disposed of to the satisfaction of the Company: 1. Defects, liens,encumbrances,adverse claims or other matters,if any,created,first appearing in the public records or attaching subsequent to the Effective Date hereof but prior to the date the Proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment. NOTE:Upon closing with Land Title,Inc.,Item 1 on Schedule B-ll will be deleted.The Final Policy will extend coverage as to the gap between the Effective Date listed in Item 1 of Schedule A and the date of recording of the instruments creating the interest to be insured. 2. Rights or claims of parties in possession not shown by the public records. 3. Any encroachment,encumbrance,violation,variation,or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. 4. Easements or claims of easements,which are not shown by the public records. 5. Any lien or right to a lien for services,labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. 6. Taxes or special assessments which are not shown as existing liens by the records. 7. General and special taxes and assessments as hereafter listed,if any(all amounts shown being exclusive of interest,penalties and costs). 8. No coverage is provided for municipal code compliance matters and fees including,but not limited to, utilities,right of way maintenance,water or sewer services,or fees for tree,weeds,grass,and snow or garbage removal,police boarding,vacant building registration and zoning. Copyright 2006-2009 American Land Title Association. All rights reserved. AMERICAN (AND r(rLE The use of this Form is restricted to ALTA licensees and ALTA members As O(IMIU♦ in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. , Page 4 of 8 First American Title Insurance Company Issued by its Agent, Land Title, Inc. 2200 County Road C West,Suite 2205, Roseville,MN 55113 COMMITMENT 9. Tax I.D.No.: 143024310087 Taxes for the year 2016: $0.00,Total,are 1st 1/2 Paid,2nd 1/2 Paid,Base Tax:EXEMPT Tax I.D.No.: 143024310088 Taxes for the year 2016: $545.16,Total,are 1st 1/2 Paid,2nd 1/2 Paid,Base Tax:EXEMPT Tax I.D.No.: 143024310089 Taxes for the year 2016: $172.86,Total,are 1st 1/2 Paid,2nd 1/2 Paid,Base Tax:EXEMPT Tax I.D.No.: 143024310090 Taxes for the year 2016: $155.53,Total,are 1st 1/2 Paid,2nd 1/2 Paid,Base Tax:EXEMPT Tax I.O.No.: 143024310091 Taxes for the year 2016: $0.00,Total,are 1st 1/2 Paid,2nd 1/2 Paid,Base Tax:EXEMPT Tax I.D.No.: 143024310093 Taxes for the year 2016: $0.00,Total,are 1st 1/2 Paid,2nd 1/2 Paid,Base Tax:EXEMPT Tax I.D.No.: 143024310095 Taxes for the year 2016: $0.00,Total,are 1st 1/2 Paid,2nd 1/2 Paid,Base Tax:EXEMPT Tax I.D.No.: 143024310096 Taxes for the year 2016: $0.00,Total,are 1st 1/2 Paid,2nd 1/2 Paid,Base Tax:EXEMPT Tax I.D.No.: 143024310092 Taxes for the year 2015: $0.00,Total,are 1st 1/2 Paid,2nd 1/2 Paid,Base Tax:EXEMPT Tax I.D.No.: 143024310098 Taxes for the year 2016: $0.00,Total,are 1st 1/2 Paid,2nd 1/2 Paid,Base Tax:EXEMPT Tax I.D.No.: 143024310099 Taxes for the year 2016: $0.00,Total,are 1st 1/2 Paid,2nd 1/2 Paid,Base Tax:EXEMPT Tax I.D.No.: 143024310100 Copyright 2006-2009 American Land Title Association. All rights reserved. AMERICAN LAND TITLE The use of this Form is restricted to ALTA licensees and ALTA members AGSUCIAr10% in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. , Page S of 8 First American Title Insurance Company Issued by its Agent, Land Title, Inc. 2200 County Road C West,Suite 2205, Roseville,MN 55113 COMMITMENT Taxes for the year 2016: $21.29,Total,are 1st 1/2 Paid,2nd 1/2 PaidBase-$0 Exempt NOTE: 1st Half Taxes are payable on or before May 15th and 2nd Half Taxes are payable on or before October 15th. 10. Levied and pending special assessments, if any. 11. Contract for Private Development and Lease-Purchase Agreement between The Housing and Redevelopment authority in and for the City of Fridley and Dayton-Hudson Corporation, dated June 5,1984,filed June 6,1984 as Document Number 644818 as amended and Second Supplement to Contract for Private Development and Lease Purchase Agreement,dated August 30,2005,filed August 31,2005 as Document Number 1977890.002, and Collateral Assignment to TCF National Bank,filed August 31,2005 as Document Number 1977890.007 and Assignment and Assumption Agreement by Target Corporation, filed October 14,2005 as Document Number 1978979.002 and Amendment to Reaffirmation of Collateral Assignment filed July 13,2006 as Document Number 1985948.012. (as to Lot 7 and No. 21 feet of East 79 feet of Lot 6) 12. Memorandum of Leasehold Agreement between the Housing and Redevelopment Authority in and for the City of Fridley and Fridley Plaza Office Building Partnership,dated February 22,1989,filed March 9,1989 as Document Number 842658,which was assigned to Performance Investments, a Minnesota General Partnership by Assignment filed March 9,1989 as Document Number 842660 as assigned to Columbia Park Properties as referenced in Amended and Restated Leasehold Agreement,dated October 14,1993,filed January 18,1994 as Document Number:1092196 (Lot 15 and part of Lot 7) 13. Access Easement Agreement between 6499 Partners LLC,The city of Fridley and the Housing and Redevelopment Authority in and for the city of Fridley,dated August 30,2005,filed August 31,2005 as Document Number 1977890.003J(Lot 7) 14. Parking and Sign Easement Agreement between the Housing and Redevelopment Authority in and for the city of Fridley and Columbia Park Properties LLC,dated September 3,2009,filed December 23,2009 as Document Number 2012222.003.(Lot 2,Block 2) 15. Utility easements over the subject property as shown on the recorded plat. 16. Rights or claims of tenants,as tenants only, under unrecorded leases, if any. asimora Copyright 2006-2009 American Land Title Association. All rights reserved. “IFRICAN LAND rt7 Lt The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. Page 6 of 8 First American Title Insurance Company Issued by its Agent, Land Title, Inc. 2200 County Road C West,Suite 2205,Roseville, MN 55113 COMMITMENT 17. Easement between Housing and Redevelopment Authority of City of Fridley and Dayton H.ud pn Corporation,dated Marcb15,1985,filed March 28,1985 as Document Number 763(as to No.'21 feet of East 79feet of lot 6). 18. Subsurface Parking Easement Agreement between C08 Fridley MN LLC and City of Fridley dated December 19,2011,filed January 12,2012 as Document Number P.t326989.001Jas to NO.21 feet of East "79feet of-Lot 6) 19. Mortgage,Assignment of Leases and Rents and Security Agreement executed by C08 Fridley MN LLC,a Delaware limited liability company,dated April 3, 2012,filed April 11, 2012 as Document Number 2030806.002 in the amount of$6,713,750.00,in favor of KeyBank National Association,which was MESNE assigned to Deutsche Bank Trust Company Americas,as Trustee for the Registered Holders of UBS Commercial Mortgage Trust 2012-C1,Commercial Mortgage Pass-Through Certificates Series 2012- C1 fi d Jul 201 , . Jury 17, 2 as Document Number 2035510.001. (es,to No.71 feet of East 79 feet of Lot 6 and covers additional property 20. UCC Financing Statement by and between CO8 Fridley MN LLC,debtor,and Key Bank National Association,secured party,filed April 11,2012 as Document Number 2030806.004,which was MESNE assigned to Deutsche Bank Trust Company Americas,as Trustee for the Registered Holders of UBS Commercial Mortgage Trust 2012-C1,Commercial Mortgage Pass Through Certificates Series2012-C1 by Asrent_fJedy17,2x1?as Document Number 2035511.001'(as'to No. 21.feet of East'79 feet of Lod covers additional ro >G PeF) _ 21. If there are any questions regarding this Commitment, please contact Jon Edstrom at (651)697-6127 or by email at jedstrom@landtitleinc.com. Please reference LT File No.522740. imonsi Copyright 2006-2009 American Land Title Association. All rights reserved. AMERICAN 1AND runt The use of this Form is restricted to ALTA licensees and ALTA members ,a1,�1An11, in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. Page 7 of 8 First American Title Insurance Company Issued by its Agent, Land Title, Inc. 2200 County Road C West,Suite 2205, Roseville,MN 55113 COMMITMENT 3rd Supplemental LT File No.522740 EXHIBIT B Property Address Reference: XXXX Unassigned, Fridley, MN 55432 XXXX Unassigned, Fridley,MN 55432 XXXX Unassigned,Fridley, MN 55432 XXXX Unassigned, Fridley, MN 55432 mom Copyright 2006-2009 AmericanLand Title Association. All rights gs reserved. AMERICAt. IAN11Mit The use of this Form is restricted to ALTA licensees and ALTA members AN11l1 lAr I.)^ in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. Page 8 of 8