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HRA 08/02/2018 August 2, 2018 HRA Meeting Regular Meeting Agenda 7:00 p.m. Call to order Roll call. Action Items 1. Approval of Expenditures 2. Approval of June 28, 2018 Meeting Minutes 3. Approval of Contract for Exclusive Negotiations 4. Approval of Resolution Supporting Grant Application—Northern Stacks VIII 5. Public Hearing—HRP Lot Sales Informational Items 1. Housing Programs Update Adjournment i I t.. Check Report to MIIII Ci iof ridley, MN By Check Number Date Range: 07/20/2018 -07/23/2018 )Fridley Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Bank Code:APBNK-HRA-APBNK-HRA hra-1333 MEDTRONIC,INC. 07/23/2018 Regular 0.00 264,030.78 30173 hra-1601 PASSAU LANDCARE INC. 07/23/2018 Regular 0.00 690.00 30174 HRA-2633 TERRACON CONSULTANTS 07/23/2018 Regular 0.00 3,380.00 30175 hra-917 ALLEN,JOHN N. 07/23/2018 Regular 0.00 55,195.50 30176 HRA-2614 HYDE DEVELOPMENT,LLC 07/23/2018 Bank Draft 0.00 388,775.45 DFT0002046 Bank Code APBNK-HRA Summary Payable Payment Payment Type Count Count Discount Payment Regular Checks 4 4 0.00 323,296.28 Manual Checks 0 0 0.00 0.00 Voided Checks 0 0 0.00 0.00 Bank Drafts 1 1 0.00 388,775.45 EFT's 0 0 0.00 0.00 5 5 0.00 712,071.73 7/23/2018 4:05:58 PM Page 1 of 2 I 11 Check Report Da \Range:07/20/2018-07/23/2018 All Bank Codes Check Summary Payable Payment Payment Type Count Count Discount Regular Checks 4 4 0.00 323,296.28 Manual Checks 0 0 0.00 0.00 Voided Checks 0 0 0.00 0.00 Bank Drafts 1 1 0.00 388,775.45 EFT's 0 0 0.00 0.00 5 5 0.00 712,071.73 Fund Summary Fund Name Period Amount 099 Pooled Cash-HRA 7/2018 712,071.73 712,071.73 7/23/2018 4:05:58 PM Page 2 of 2 iCheck Report My City of Fridley, MN By Check Number µn il Date Range: 07/06/2018 - 07/19/2018 s,.r. Fridley Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Bank Code:APBNK-HRA-APBNK-HRA PPT:107738 FRIDLEY HRA ICMA 401 07/12/2018 EFT 0.00 313.83 260 PPT:307066 FRIDLEY HRA ICMA 457 07/12/2018 EFT 0.00 126.92 261 hra-623 FRIDLEY,CITY OF 07/12/2018 Regular 0.00 1,004.27 30167 hra-1113 MONROE MOXNESS BERG PA 07/19/2018 Regular 0.00 9,203.80 30168 hra-1601 PASSAU LANDCARE INC. 07/19/2018 Regular 0.00 690.00 30169 HRA-2621 JOHNSON,GREG 07/19/2018 Regular 0.00 455.00 30170 HRA-2627 WENCK ASSOCIATES INC 07/19/2018 Regular 0.00 243.90 30171 hra-311 CENTER FOR ENERGY&ENVIRONMENT 07/19/2018 Regular 0.00 60,545.00 30172 Bank Code APBNK-HRA Summary Payable Payment Payment Type Count Count Discount Payment Regular Checks 13 6 0.00 72,141.97 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 2 2 0.00 440.75 15 8 0.00 72,582.72 7/19/2018 3:00:31 PM Page 1 of 2 Check Report Date Range:07/06/2018-07/19/2018 All Bank Codes Check Summary Payable Payment Payment Type Count Count Discount Payment Regular Checks 13 6 0.00 72,141.97 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 2 2 0.00 440.75 15 8 0.00 72,582.72 Fund Summary Fund Name Period Amount 099 Pooled Cash-HRA 7/2018 72,582.72 72,582.72 7/19/2018 3:00:31 PM Page 2 of 2 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION June 28, 2018 Chairperson Gabel called the Housing and Redevelopment Authority Meeting to order at 7:00 p.m. MEMBERS PRESENT: Pat Gabel William Holm Stephen Eggert Kyle Mulrooney Gordon Backlund OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Wally Wysopal, City Manager Jim Casserly, Development Consultant Action Items: 1. Approval of June 7, 2018 Meeting Minutes MOTION by Commissioner Eggert to approve the minutes as presented. Seconded by Commissioner Backlund. Commissioner Eggert noted to correct the spelling on page 10 "Motion by Commissioner Eckert Eggert..." UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GABEL DECLARED THE MOTION CARRIED AND THE MINUTES APPROVED AS AMENDED 2. Approval of Resolution Adding Parcels to Housing Replacement Program Paul Bolin, HRA Assistant Executive Director, stated that the Authority and Council approved an amended and restated plan for the HRP in late 2010. The related plan gave the Authority the ability to add Phases (parcels) to the program by resolution. Once a parcel is included in the district, the HRA collects tax increment for a period of 15 years. The increment is used to help cover some of the costs of the program. Unlike a traditional tax increment district, the HRP is less cumbersome to the administer. Since the program originally began in 1995, the City has approved twelve phases for a total of 38 properties. Under special legislation approved in April 2010, the City can designate up to 100 total parcels, inclusive of the 38 properties currently in the program. Mr. Bolin said that Anoka County recently made two tax-forfeit properties available to the City. Both properties are vacant, dilapidated and meet the requirements for the HRP. The properties are locaed at 509 Cheri Lane and 8295 Broad Avenue. Staff is working with Mile Willey at Liesch/Terracon to coordinate the hazardous materials assessment, abate ad demolition of the two properties. We expect the demolition to occur by mid-August. There is already some interest from builders in purchasing the lots. Staff recommends that the Authority approve the attached resolution amending the HRP to include Phase XIII, adding the properties at 509 Cheri Lane NE and 8295 Broad Avenue NE into the HRP. Housing and Redevelopment Authority Meeting of June 28, 2018 2 Commissioner Gabel asked for clarification on the market value of the homes. Mr. Bolin replied that the estimated value in the packet comes from the property tax records and represents the taxable value. Commissioner Holm asked what the demolition costs would be. Mr.Bolin replied it would be around$12,000 for each home. That expense would be recovered through the tax increment received over the next 15 years plus a portion recovered by the sale of the lots. Commissioner Eggert noted that there are not a lot of opportunities to buy properties. This is an opportunity to show residents the before and after of these homes and what the Authority is doing to invest in our communities on the residential side. MOTION by Commissioner Holm to approve the Resolution Adding Parcels to Housing Replacement Program. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GABEL DELCARED THE MOTION CARRIED UNANIMOUSLY 3. Approval of Changes to Housing Rehabilitation Loan Program Paul Bolin, HRA Executive Assistant Director, stated that earlier this month staff provided an overview of proposed changes and additions to the current loan program. Commissioner comments and suggestions were incorporated into the proposed loan program. The intent of this program is to provide an incentive for Fridley seniors to make improvements to their homes that will allow them to remain in their homes and/or update the homes for a future sale. The loan will be due upon the sale of the home, transfer of ownership or if it is no longer the primary residence. At least one of the homeowners must be at least 62 years old to qualify for this program. Commissioners suggested collecting fees to cover the costs of processing loan,that information has been added. Mr. Bolin said that the terms for the Senior Deferred revolving loans are as follows: Interest Rate: 0% Loan Limits - $5,000 minimum/$25,000 maximum Loan Terms—Due upon sale/transfer/no longer primary residence Eligible Properties—Residential properties Ownership/Occupancy—Owner occupied, one owner at least 62 years old Loan to Value Ratio— 110% Income Limits—None Eligible Improvements—Most interior and exterior improvements "Sweat Equity"—Not Allowed Pre-inspection Required—Yes Post Install Inspection Required—Yes Work Completion— 120 days Underwriting— Current on mortgage payments; Current on real estate taxes; no liens or unpaid judgements; no pending bankruptcy or foreclosure. Housing and Redevelopment Authority Meeting of June 28, 2018 3 Fees—Loan recipient pays a 1%origination fee,preparation fee,mortgage filing fee, title work, credit report, flood zone check and any other applicable closing costs associated with the loan. Mr.Bolin said that staff also proposes expanding the rental property revolving loan program to include buildings with 1-12 units and change the name of the product to Rental Property Revolving Loans. There are a large number of rental properties, more than 50 years old, which have 8-12 units, and a number of single family homes that have become rentals over the past 10 years. This change will provide additional opportunities to improve the code deficiencies and outward appearances of the City's older rental stock. Mr. Bolin said that Commissioners inquired about the sliding maximum loan, based on the number of units in the building. As the improvements are limited to code deficiencies and exteriors, it was determined that an extra$3,000/unit wild assist in replacing windows in the larger buildings. Mr. Bolin said that the terms for the Rental Property revolving loans are as follows: Interest Rate: 4.5% Loan Limits - $5,000 minimum/$50,000 maximum for up to 4 units; an additional $3,000 may be borrowed for each additional unit. Loan Terms— 1 year minimum/20 year maximum Eligible Properties— 1-12 unit residential properties Ownership/Occupancy—Owner occupied not required Loan to Value Ratio— 115% Income Limits—None Debt to Income Ratio—Maximum 50%(sole proprietors). LLC's must show positive cash flow. Eligible Improvements—Interior code violation corrections/most exterior "Sweat Equity"—Not Allowed Pre-inspection Required—No Post Install Inspection Required—Yes Work Completion— 120 days Underwriting—No payments more than 60 days late in the past 12 months;no bankruptcy in the past 18 months; current on mortgage payments; current on real estate taxes; liens and judgements factored in the loan to value calculation. Mr. Bolin said that staff recommends adopting the attached resolution. In the event that the "Senior Deferred Loan" program becomes "too successful", staff will recommend placing a cap on the total amount of funds that can be loaned out. Additionally, staff will monitor the "Multi-family Exterior Improvement Loan: and suggest changes to the maximum loan amount if needed. Commissioner Holm thought that the administrative fees associated with the program may restrict the effectiveness of the program for loans less than$5,000. Mr. Bolin replied that the $550 fee is paid by the Authority for each loan that is approved. There are staff costs associated with these loans including following up to make sure the work is done to the home. These programs should be ready early August when CEE has them entered into their system. MOTION by Commissioner Eggert to Approve the Changes to Housing Rehabilitation Loan Program. Seconded by Commissioner Backland. Housing and Redevelopment Authority Meeting of June 28, 2018 4 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Approve Resolution Supporting Grant Application to the Metropolitan Council— Sherman / NS Station MOTION by Commissioner Holm to add item no.4 to the agenda. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GABEL DECLARED THE MOTION CARRIED AND THE ITEM ADDED TO THE AGENDA Mr. Bolin stated that this is a development agreement with Sherman and Associates to develop the housing at the NorthStar Commuter Rail Station. Staff is also working with metro transit to rearrange some of the parking and had success by reducing the parking to 80 stalls. There will be expenses relocating the pond and replacing and building 80 new parking stalls and the new bus lane. Sherman would like Fridley to work with them on a grant application through the Communities Transit Orient Development Grant Application. Commissioner Backlund asked if the housing would be all be market rate or subsidized housing. Mr. Bolin replied that Sherman looking at building three separate buildings. MOTION by Commissioner Holm to approve the Resolution Supporting Grant Application to the Metropolitan Council— Sherman/NS Station. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY Adjournment: MOTION by Commissioner Backlund to adjourn. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:35 P.M. toiAGENDA ITEM ' o.0f HOUSING & REDEVELOPMENT AUTHORITY Fridley AUGUST 2, 2018 TO: Wally Wysopal, Executive Director of HRA FROM: Paul Bolin, Assistant HRA Director SUBJECT: Approval of Contract for Exclusive Negotiations — Existing City Hall As the City was preparing to build a new Municipal Center, staff began planning for the eventual sale of the existing property. Discussions with Fairview, operator of the buildings south of City Hall, led to interest from Ebenezer Homes. Ebenezer is part of Fairview Health Services and is the State's largest senior housing operator with over 100 years of experience serving seniors. Ebenezer prefers to work with development/investment groups than to build and own the buildings. Steve Dunbar of Ivy Properties is heading up the group that will build and own the building. There are a number of tasks that the Developer, City and Authority will need to complete over the next few months. Tasks include site design work, financial analysis, engineering, obtaining marketable title and changes to parking lease agreements. Upon completion of a number of the tasks, the Developer and Authority will be in a position to draft a full redevelopment agreement. In the interim, a Contract for Exclusive Negotiations has been drafted to protect both parties. , ...."t ,,,,eyoe � • E 1 * I , FAIRVI kR CLINKS ;• _1s k The current concept would be to construct a 134 unit senior"with services" building. The building would include assisted living as well as memory care units. The site of the current parking deck could become a second phase of the project. 4 7°4*" A4+154P4077 1 i.,,,,,,,,, i'l ,µ�: ate. 7 ." a�' ,>t X+rr i s', x pt z s ,, 9" � - The attached agreement was drafted by Attorney Casserly and reviewed by Staff and the Redeveloper. The agreement is very straightforward and lays out the responsibilities for each partyplace. or The agreeuntilMarchment will remain in effect until a Contract for Private Redevelopment is in , w1., 2-019. t. dM'- , »s ! 4 ., , 1 • /-•'4,f,„.....X--#4,44.1, ..,14*. s. oN, ---"'''' ;II at rl [{3 11.fi n l'--'. 1 t 0 V• , x • T Tau w x ..t.,, .,ti "�a�7;.� 4 s 471L-4":7":4, _ . r 'gym�y' 3,34„.„„w3.-,,,,,,,,„...'. § - x" ..x+ r � � a � n :'�� . �.. � '�' a STAFF RECOMMENDATION: Staff recommends the Authority approve the attached Contract for Exclusive Negotiations. The agreement will provide Ivy Properties the protections they need to moveforwarrith the project. DRAFT: July 25, 2018 CONTRACT FOR EXCLUSIVE NEGOTIATIONS By and Between the HOUSING AND REDEVELOPMENT AUTHORITY In and For THE CITY OF FRIDLEY, MINNESOTA And Fridley Investments, LLC This document was drafted by: James R. Casserly, Esq. Vickie Loher-Johnson, Esq. Monroe Moxness Berg PA 7760 France Ave South, Suite 700 Minneapolis, MN 55435 952-885-5999 CONTRACT FOR EXCLUSIVE NEGOTIATIONS THIS AGREEMENT, effective as of this day of , 2018 is between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota ("Authority"), having its principal offices at 6431 University Avenue N.E., Fridley, Minnesota 55432, and Fridley Investments, LLC, a Minnesota limited liability company with its principal offices at 200 South Sixth Street, Suite 1300, Minneapolis, MN 55402 ("Redeveloper"). WHEREAS, the Redeveloper is proposing to develop the area identified on the map attached as Schedule A (the "Site") as a senior housing project and is requesting that the Authority negotiate exclusively with the Redeveloper while the area is being studied, designed and marketed; and WHEREAS, the Authority has agreed to sell and the Redeveloper has agreed to purchase the Site for$2,200,000.00; and WHEREAS, the Authority is willing to negotiate exclusively with the Redeveloper provided certain conditions described below are met; NOW, THEREFORE, in consideration of the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: Section 1.1. Definitions. In addition to the words and terms elsewhere defined in this Agreement, the following words and terms shall have the following meanings in this Agreement unless a different meaning clearly appears from the context: "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Authority" means the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota. "City" means the City of Fridley, Minnesota. "Council" means the Council of the City. "Minimum Improvements" means a senior housing project. "Party" means a party to this Agreement. "Purchase Price" means the sum of$2,200,000.00 to be paid by the Redeveloper for the Site. "Redeveloper" means Fridley Investments, LLC, a Minnesota limited liability company. "Redevelopment Contract" means the Contract for Private Redevelopment described in Section 4 of this Agreement. "Redevelopment Project" means the Site and the Minimum Improvements. "Site" means the real property described in Schedule A of this Agreement. "State" means the State of Minnesota. Section 2.1. Representations by the Authority. The Authority represents as follows: (A) It is a public body duly organized and existing under the laws of the State and that it has the power to enter into this Agreement and carry out its obligations hereunder. (B) Title to a portion of the Site is in the City of Fridley, and the Authority shall use its best efforts to acquire title to the Site subject to easements and restrictions of record. Section 2.2. Representations by the Redeveloper. The Redeveloper represents as follows: (A) The Redeveloper is a Minnesota limited liability company authorized to do business in the State of Minnesota, and has duly authorized the execution of this Agreement and the performance of its obligations hereunder. (B) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement will constitute a breach of any obligations of the Redeveloper under the terms and conditions of any indebtedness, agreement or instrument of whatever nature to which Redeveloper is now a party or by which it is bound, which breach will materially adversely affect the ability of Redeveloper to perform its obligations under this Agreement. Section 3.1. Redeveloper Responsibilities. The Redeveloper shall be responsible for the following: (A) Arranging for completion of geotechnical analysis, as necessary. (B) Determine the adequacy of the available utilities. (C) Review information needed for Watershed District approval and any other governmental approvals needed by the Redeveloper for completion of the Redevelopment Project. (D) Arranging for completion of a preliminary site plan for the Site showing the size, nature and location of the Minimum Improvements. (E) Arranging for completion of a preliminary marketing analysis showing the need and a proposed development schedule for the Minimum Improvements. (F) Prepare a project pro forma for the Minimum Improvements. Section 3.2. Authority Responsibilities. The Authority shall be responsible for the following: (A) Assist the Redeveloper with permit review and application for grants if needed. (B) Acquire marketable title of the City parcels. (C) Provide to the Redeveloper survey, title and any environmental studies that the Authority has in its possession. (D) Negotiate exclusively with the Redeveloper in accordance with the terms of this Agreement. Section 4.1. Contract for Private Redevelopment. Prior to the termination of this Agreement, the Parties shall negotiate the terms of a Redevelopment Contract. Each Party must find the terms acceptable in that Party's complete and unfettered discretion. The Redevelopment Contract shall address the issues involving the development of the Site, including the following: (A) Offsets to the Purchase Price which will be reimbursement of the costs described on Schedule B. (B) Timing of the Minimum Improvements. (C) Composition and quality of the Minimum Improvements. (D) Timing of any public improvements. (E) Redeveloper guarantees. (F) Duration. (G) Geotechnical and environmental issues. (H) Transfer of Title and closing issues. Section 5.1. Termination. This Agreement shall terminate March 1, 2019, unless both parties agree in writing to extend this Agreement. Section 5.2. Effect. This Agreement outlines the Parties' understanding that they intend to negotiate in good faith and that such negotiations may lead to the execution of a definitive Redevelopment Contract. Each Party retains throughout the course of this Agreement complete and unfettered discretion to conduct its negotiations and perform its responsibilities in the manner it sees fit. The Parties agree that upon termination of this Agreement they shall have no further obligation to each other except as provided for in this Agreement and the Parties further agree to execute any document reasonably necessary to evidence termination. Section 6.1. Additional Provisions: (A) The Redeveloper shall not assign its rights under this Agreement. (B) Each Party shall make all reasonable efforts to cooperate with the other Party in that Party's efforts to fulfill its responsibilities under this Agreement. (C) Except for any willful misrepresentation or any willful or wanton misconduct by the Authority, the City, or their agents, officers, and employees, the Redeveloper shall hold the Authority and the City, their agents, officers and employees harmless from any of the Redeveloper's acts or the acts of those operating under the Redeveloper's direction arising from Redeveloper's marketing, acquisition, and construction of the Minimum Improvements. (D) The Parties are not partners, agents or joint venturers in the development of the Minimum Improvements or in any activities contemplated by the Agreement. (E) Notice, demand, or other communication from one party to the other shall be deemed effective if sent by certified mail, postage prepaid, return receipt requested or delivered personally to a party at its address in the first paragraph of this Agreement, or at such other address as such party may designate in writing to the other party. (F) In the event of termination of this agreement, and the absence of a Redevelopment agreement, Redeveloper shall make available to the Authority for its unrestricted use at no cost to the Authority all non- proprietary work product, including market analyses, soil and engineering reports, geotechnical reports, infrastructure construction budgets, research materials and other documentation produced specifically for the Redevelopment Project. IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf, and the Redeveloper has caused this Agreement to be duly executed in its name and behalf, both as of the date first above written. [Signatures on following pages] Dated: , 2018 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By: Its Chairperson By: Its Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) On this day of , 2018, before me, a notary public within and for Anoka County, personally appeared Patricia Gabel and Walter T. Wyposal, to me personally known, who by me duly sworn, did say that they are the Chairperson and Executive Director, respectively, of Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, and acknowledged the foregoing instrument on behalf of said Authority. Notary Public Authority Signature Page — Contract for Exclusive Negotiations Dated: , 2018 Fridley Investments, LLC By: Name: Steven Dunbar Its: Chief Manager STATE OF MINNESOTA ) ) ss. COUNTY OF ) On this day of , 2018, before me, a notary public within and for County, personally appeared _Steven Dunbar to me personally known, who by me duly sworn, did say that he/she is the _Chief Manager , of Fridley Investments, LLC, a Minnesota limited liability company, and acknowledged the foregoing instrument on behalf of said limited liability company. 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DRAFT .Fats R.►W.i LS t w nit) 411...717.117.1. in. 4 1 SCHEDULE B REIMBURSEABLE COSTS Extraordinary costs associated with hazardous material abatement and demolition. Eligible activities to be defined in development agreement. 4837-9072-5997,v. 1 (:1 ACTION ITEM JJ HRA MEETING OF AUGUST 2, 2018 DATE: July 25, 2018 TO: Wally Wysopal, City Manager 44/ FROM: Paul Bolin, Assistant Executive HRA Director SUBJECT: MN DEED Redevelopment Grant Application Hyde Development has requested the Authority's assistance to obtain a grant through the Minnesota Department of Employment and Economic Development's Redevelopment grant program, for Northern Stacks VIII. This is the building located at 5101 Industrial Boulevard, adjacent to Northern Stacks. You may recall from recent discussions, that prior to being used as a warehouse, the property was owned by a printing and binding company. The binding required the use of solvents for cleaning glue from equipment and prior to stricter environmental standards, the solvent was often times dumped out the back door. The testing done on the site indicates that there is quite a bit of environmental cleanup necessary that will require new infrastructure, demolition and ponding. This application is seeking $250,000 to assist in demolition, ponding and environmental infrastructure. Staff recommends approval of the attached resolution supporting Hyde Development's application for a grant through DEED's Redevelopment Grant Fund. HRA RESOLUTION 2018- RESOLUTION APPROVING APPLICATION TO ENTER INTO FUNDING AGREEMENT WITH THE DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT (DEED) FOR GRANT ASSISTANCE FOR THE NORTHERN STACKS VIII 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 Redevelopment Grant Program to submitted on August 1, 2018 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 2nd DAY OF AUGUST,2018. PATRICIA GABEL, CHAIRPERSON WITNESSED: WALLY 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 August 2, 2018. DEB A. SKOGEN, CITY CLERK ACTION ITEM HRA MEETING OF AUGUST 2, 2018 Date: July 25, 2018 To: Wally Wysopal, City Manager From: Paul Bolin, Asst. Executive HRA Director Subject: Housing Replacement Program — Public Hearing Lot Sales Last month the Authority placed two tax-forfeited properties into the Housing Replacement Program. The properties are located at 509 Cheri Lane and 8295 Broad Avenue. Tollberg Homes has submitted lot reservation agreements for purchasing both properties for the full asking price. Tollberg Homes is a custom home builder officed in Anoka. They have previously participated in the Authority's Housing Replacement Program, constructing the new home at 5875 2nd Street. They have been easy to work with and their craftsmanship is far above par. Prior to closing, they will submit plans meeting the criteria of the program. Recommendation: STAFF RECOMMENDATION: Staff recommends holding a public hearing and approving the attached resolutions, authorizing the sale of the lots to Tollberg Homes. 509 Cheri Lane NE 8295 Broad Avenue NE Lot Size—75x150= 11,250 sq.feet Lot Size—60x110= 6,600 sq. feet Sales Price $50,000 Sales Price$36,000 A �u Mak HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2018- _ A RESOLUTION AUTHORIZING THE SALE OF RESIDENTIAL PROPERTY BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA 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 sell certain residential property (the "Property") described below: Legal Description: Street Address Lot 16, Block 1 Murdix Park 509 Cheri Lane NE Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted a development program known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program")pursuant to Minnesota Statutes, Section 469.001 et seq. 2.02. The Authority hereby finds that it has approved and adopted a Housing Replacement District Plan(the"Plan") and created Housing Replacement District No. 1,pursuant to and in accordance with Laws of Minnesota 1995, Chapter 264, Article 5, Sections 44 through 47; Laws of Minnesota 1996, chapter 471, article 7, section 22; Laws of Minnesota 1997, chapter 231, article 10, section 13; Laws of Minnesota 2002, chapter 377, article 7, section 6; Laws of Minnesota 2008, chapter 154, article 9, section 19, and Laws of Minnesota 2010, Chapter 216, Section 42 (collectively "The Act"). 2.03. The Authority hereby finds that it has performed all actions required by Minnesota Statutes for the sale of the Property. 2.04. The Authority hereby finds that the sale of the Property promotes the objectives as outlined in its Redevelopment Program and the Plan. HRA Resolution No. 2018- Page 2 Section 3. Approval of the Sale. 3.01 The sale of the Property is hereby approved. Section 4. Authorization for Execution and Delivery. 4.01. The Chairman, the Executive Director and Assistant Executive Director are hereby authorized to execute and deliver any documents necessary to effect the sale of the Property in accordance with the Authority's Housing Replacement Program. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 2nd DAY OF AUGUST, 2018. PATRICIA GABEL - CHAIRPERSON ATTEST: WALTER T. WYSOPAL, EXECUTIVE DIRECTOR HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2018- _ A RESOLUTION AUTHORIZING THE SALE OF RESIDENTIAL PROPERTY BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA 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 sell certain residential property (the "Property") described below: Legal Description: Street Address Lot 35 & 36, Block E, Riverview Heights 8295 Broad Avenue NE Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted a development program known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program")pursuant to Minnesota Statutes, Section 469.001 et seq. 2.02. The Authority hereby finds that it has approved and adopted a Housing Replacement District Plan(the"Plan")and created Housing Replacement District No. 1,pursuant to and in accordance with Laws of Minnesota 1995, Chapter 264, Article 5, Sections 44 through 47; Laws of Minnesota 1996, chapter 471, article 7, section 22; Laws of Minnesota 1997, chapter 231, article 10, section 13; Laws of Minnesota 2002, chapter 377, article 7, section 6; Laws of Minnesota 2008, chapter 154, article 9, section 19, and Laws of Minnesota 2010, Chapter 216, Section 42 (collectively"The Act"). 2.03. The Authority hereby finds that it has performed all actions required by Minnesota Statutes for the sale of the Property. 2.04. The Authority hereby finds that the sale of the Property promotes the objectives as outlined in its Redevelopment Program and the Plan. HRA Resolution No. 2018- Page 2 Section 3. Approval of the Sale. 3.01 The sale of the Property is hereby approved. Section 4. Authorization for Execution and Delivery. 4.01. The Chairman, the Executive Director and Assistant Executive Director are hereby authorized to execute and deliver any documents necessary to effect the sale of the Property in accordance with the Authority's Housing Replacement Program. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 2nd DAY OF AUGUST, 2018. PATRICIA GABEL - CHAIRPERSON ATTEST: WALTER T. WYSOPAL, EXECUTIVE DIRECTOR Fridley Loan Summary Report Activity for Period 6/16/2018 -7/15/2018 cee:' Center for Energy and Environment Application packets requested/mailed: This period: 0 Year-to-Date: 2 Residential Advisor Visits: This period: 1 Year-to-Date: 7 Loans currently in process for residents in your City/Neighborhood: 7 Closed Loans This period: Year-to-Date: Fridley Units Units 0 0 Closed End 47,918.00 2 116,602.00 5 Last Resort 0.00 0 0.00 0 Last Resort Emergency 2,120.00 1 2,120.00 1 Deferred Mobile Home Closed End 0 0 Total 50,038.00 3 118,722.00 6 Leveraged Funds This period: Units Year-to-Date: Units CEE 0.00 0 20,000.00 1 Total 0.00 0 20,000.00 1 Types of Improvements Financed YTD #of Projects %of Total Types of Properties Financed YTE # %of Total Commercial-Non-residential 1 12.50 Additions/Finishing off unused space 1 8.33 Single Family Residence 7 87.50 Air Conditioning 1 8.33 Driveways 1 8.33 Fence 1 8.33 Heating System 1 8.33 Kitchens 1 8.33 Lighting 1 8.33 Other Interior Improvements 2 16.67 Water Heater 1 8.33 Windows, Doors, Storm Windows, Storr 2 16.67