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HRA 11/13/1986 HOUSING & REDEVEMMENT AUTHORITY MEETING THURSDAY, NCSVE{4BM 13, 1986 7:00 P.M. Rick Pribyl Finance Director a CITY OF FRIDLEY AGENDA HOUSING .& REDEVELOPMENT AUTHORITY MEETING THURSDAY, NDa BER 13, 1986 7:00 P.M. Location: Council Chamber (upper level) CALL TO ORDER: ROLL CALL• APPROVAL OF MINUTES: Housing & Redevelopment Authority Minutes: September 23, 1986 Housing & Redevelopment Authority Minutes: October 9, 1986 ADOPTION OF AGENDA: CONSIDERATION OF A RESOLUTION APPROVING THE EXECUTION OF A DEVELOPMENT AGREEMENT BETWEEN THE HRA AND UNIVERSITY AVENUE ASSOCIATES FOR CONSTRUCTION OF A 358 UNIT RENTAL APARTMENT CDMPLEX BETWEEN 83RD AND 857H AVENUES. . • • • . . . . . . • . • . . • . . OUNSIDERATION OF A RESOLUTION MUESTING THE CITY COUNCIL TO CALL A PUBLIC HEARING ON THE AMENDMENT TO THE MDDIFIED REDEVELOPMENT " PLAN EOR REDEVELOPMENT PROJECT NO. 1 AND THE FINANCING PLANS FOR TAX INCRMENT DISTRICT NOS. 1-8 TD ALLOW FOR ADDITIONAL PROJECT CDSTS WITHIN TAX INCREMENT DISTRICT N0. 3 FOR TIE CONSTRUCTION OF THE NORTH ESTATES APARTMENT CDMPLEX BETWEEN 83RD AND 857H AVENUES. . . . . . 2 - 2A OONSIDERATION OF APPROVING ACTION TO DRAW ON LOU LUNDGREN' S $200,000 LETTER OF CREDIT PER SECTION 4.5 OF THE JUNE 1986 3 - 3C DEVELOPMENT AGREEMENT . . . . . . . . . . . . . . . . . . . . . . . . . UPrAT£ C11N LANCE POINTE . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 4G CONSIDERATION OF APPROVING A CHANGE ORDER TO THE LAKE POINTE DEVELOPMENT STREET IMPROVF14 = PROTECT N0. ST. 1986-1&2, PHASE II . 5 - 5D RECEIVING INFORMATION FROM ANOKA COUNTY REGARDING STATUTE ACTIVITY VERIFICATION MUIREMENTS FOR TIE CITY'S TAX INCREMENT DISTRICTS . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6C RECEIVING PROJECT TIMETABLE FOR BOND IMPROVEMENT INVESTMENTS AND ODNSD ERATION OF ES9ABLISHING PROJECT IMPROVEMENT EXPENDITURES . . . . . 7 - 7D WNSIDERATION OF ISSUINGG A CERTIFICATE OF CDMPLETION TO VANTAGE (DMHkNIES FOR CONSTRUCTION CDNLETED ON THE WHOLESALE CLUB PER SECTION 3.3(a) (ii) OF THE CONTRACT FOR PRIVATE DEVELOPMENT . . . . • • • • 8 - 8C ! HRA AGENDA NOVEMBER 13, 1986 PAGE 2 PRFSENMTJON BY WINFIELD DEVELOPMENT, INC. REGARDING PROPOSED DEVELOPMENT OF THE SOU7HWEST QUATRANT OF UNIVERSITY AVE. AND 9 MISSISSIPPI ST. . . . . . . . . . . . . . . . . . . . . . . . . . . . ESTIM T S: . . . . . . . . . . . . . . . . . . . 10 CLAIM: : 07HER BUSINESS: ADJCUROENT: "I 1 CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY AND CITY COUNCIL SPECIAL JOINT CONFERENCE MEETING SEPTEMBER 23, 1986 The meeting convened at 7:35 p.m. HRA Members Present: Larry Commers, Virginia Schnabel , Duane Prairie, John Meyer HRA Members Absent: Walter Rasmussen City Council Members Present: Mayor Nee Bob Barnette Ed Fitzpatrick Dennis Schneider Brian Goodspeed Others Present: Nasim Qureshi , City Manager Rick Pribyl , Finance Director Bill Hunt, Asst. to the City Manager Samantha Orduno, Management Assistant Jock Robertson, HRA Director Julie Burt, Asst. Finance Officer Dave Newman, HRA Attorney DEVELOPMENT OF POLICY FUNDING ASSISTANCE TO DIFFERENT PUBLIC IMPROVEMENTS TO ENCOURAGE AND FACILITATE DEVELOPMENT OR REDE EL Pt1ENT: Mr. Qureshi stated the HRA and City Council members had been provided with some information which essentially laid out some of the areas where direction was needed from the HRA and possibly some input from the Council . Mr. Qureshi stated the HRA was reactivated in the latter 1970's. Since then, the HRA has been successful in developing and helping a number of major projects. A good example was around City Hall . It was a very typical and good example of what HRA's can do to change the shape of an area. Some of the major projects were the Fridley Plaza Clinic, the office building and plaza, Northern Operations Center, the Holly Center renovation, Skywood Mall , Johnson Printing, and now Lake Pointe Corporate Center. Mr. Qureshi stated the first district that was created by the HRA was in 1979, District No. 1 , Center City. This redevelopment district was created for 25 yrs., and it was under the old rules that provided a lot of lattitude. (The whole area was also an increment district.) The HRA will be collecting increments on all of this area for 25 years since its creation. i HRA AND CITY COUNCIL SPECIAL-JOINT CONFERENCE MEETING SEPTEMBER 23 1986 PAGE 2 Mr. Qureshi stated that later the NRA created the Moore Lake District, District No. 2. When that was created, the State had changed the rules and provided a lot of restrictions--there was the redevelopment district and then a portion which was included in an increment district. The State imposed the restriction that unless the HRA does some actual improvements to these parcels inqluded in increment areas, they will lose their increment after a certain number of years. Mr. Qureshi stated the HRA then created District No. 3 and Increment District No. 3 which were kind of contiguous. The same restrictions were imposed that they could only capture the increment for 4-5 years, depending on when the district was created, unless they do improvements parcel by parcel . Mr. Qureshi stated smaller redevelopment districts were created after that: Districts 4, 5, 6, and 7. Mr. Qureshi stated that because of District No. 2, the City received a letter from Anoka County dated June 26, 1986, asking the City if it has complied with state law. This was the first official communication of this type. He stated he wrote the County on July 25 stating the City has complied because they have done some parcel by parcel improvements. Mr. Qureshi stated that both District No. 3 and District No. 4 were getting to the stage where they are maturing and the NRA has to make a determination on whether or not in the future they want to realistically continue to capture the increments in these districts . If the answer is yes, then the HRA has to take positive steps to say they are going to take the increments and spend the increments on improve- ments that could be on-site or adjoining--public improvements (water, sewer, street, signalization, safety improvements, .drainage, etc. ) . Mr. Qureshi stated he had provided information on the dollars. Source of revenue was the increments, and the HRA had already pledged a certain portion of the increments for the bonds they have sold for a number of projects. The HRA has sold $11. 550 million in bonds for improvements for projects which are underway such as Lake Pointe and other miscellaneous projects , for which $3.4 million is available and has to be expended in the next two years , or it has to be given back. Mr. Qureshi stated that in a joint meeting on May 8 between the City Council and the HRA, there was a discussion regarding setting priorities for the use of $3.4 million miscellaneous project funds. They came up with a list of pc$,§i51e %projects which included soil correction, intersection improvements at :est Moore Lake Drive and Old Central , Mississippi Street improvements of T.H. 65, -'gore Lake water quality, University Avenue Corridor, Senior Houisng, totalling $3,750,000. Mr. Qureshi stated if the HRA chose to receive all the increments and fulfilled all its obligations, by 1993, they would have a balance of $6.8 million. He would like to see some type of policy put together that said how that money could logically be spent. He stated the HRA has to take come positive action to retain those parcels in the increment districts. Unless they do that, the money is not collected so they have to show they are actually doing something with the money, or have plans for it, and that those properties have been positively affected by some improvements that have been done. i HRA AND CITY COUNCIL SPECIAL JOINT CONFERENCE MEETING SEPTEMBER 23 1986 PAGE 3 Mr. Qureshi stated one way to continue to retain the money was through public improvements, and these public improvements have to be in the general area and have to show a direct impact on the parcels. The reason the HRA provided help in the past in some of these areas was because they felt the district could not develop by itself because of poor soil conditions, drainage problems, etc. Mr. Qureshi gave some examples of road improvements, drainage improvements, and signalization improvements in the North Area that would help development in that area. Mr. Qureshi showed an overview of some examples of improvements the HRA has already done. Mr. Qureshi asked what level of help did the HRA want to provide. If they want to continue to retain these parcels in the increment district, they have to provide help. If the HRA provides a high level of help, then a lower level of help comes from the City and the developers. That was what made a development more feasible. Mr. Qureshi showed an overview of the "Improvement Investment Policy for Excess Increment Funds". Mayor Nee stated that the City's ability to finance things from the general revenue was increasingly limited. This year for the first time in history, the City's budget went down, and there were a number of reasons for it. He stated that unless it was fairly easy to establish an assessment benefit, a lot of these improvements were going to be difficult for the City. Typically, the City does not pay its share of a signal out of an assessment. It has been done only once at 69th Ave. Because of the tax readjustment of the assessment formulas and the levy limits and the slowing down in the development of tax base, partly due to fiscal disparities, the City's ability to do some of these things was going to be less and less. There were two choices in which the NRA could contribute to that revenue: 1 . To take over some of the projects they agree ought to be done in the way of public improvements. 2. To release the tax base and let the City get an increasing share of it. The problem with releasing the tax base and the City getting a share of it was that the City's share was 14°x• If the HRA gets 100% and can do what the City thinks ought to be done, that was a much better choice. Mayor Nee stated he felt there were some advantages to having the HRA maintain the productivity of the increment districts at least for the next ten years until some of the basic infrastructure needs are met. If they are in agreement that these are infrastructure improvements that someone ought to make for the benefit of the community, he felt the HRA was the best body to do that. Councilman Barnette stated he felt Mayor Nee had stated the City Council 's position pretty clearly. 3 r HRA AND CITY COUNCIL ` SPECIAL JOINT CONFERENCE MEETING, SEPTEMBER 23, 1986 PAGE 4 Councilman Fitzpatrick agreed that the Mayor's concerns were also the Council 's concerns. The City needs as much help as it can get if these projects are aoirn to be done. Councilman Goodspeed stated he has looked at many flooded basements in the past year because of water problems from the communities upstream from Fridley. Fridley is not being responsible for its water. For example, every time someone builds a garage in Coon Rapids, that is another car that goes through Fridley twice a day generating more traffic, road maintenance, traffic problems, etc. , problems that are caused by people outside Fridley. He felt it was appropriate to use this funding from outside Fridley to correct some of the problems inside Fridley. Councilman Schneider agreed. When the NRA first started, the Commission was very careful and very conservative about capturing the increments so that nothing would backfire, but there was always that risk. It did work and it seemed to make sense to solve some of the problems with the money that was captured, doing it reasonably and conservatively. If they have the opportunity and it makes good financial sense to make some of these improvements, they should do it while the money is there. Mr. Qureshi stated one of the reasons the City's budget was as low as it was this year was because of substantial cutbacks in state aid and federal revenue-sharing. Mr. Qureshi stated they have to recognize that this tool was available today and they are under the assumption that this took will be available for several years, but it might not be available 2-5 years from now. Mr. Prairie stated the City's budget has been pinched as has the school district budget. He felt everyone would agree that the possible projects if they were done would help make the City look better. He hoped they could at some time give the School District an idea when some of these things might be coming. Councilman Barnette stated the School District was funded with a per pupil unit which was about $3,000/pupil. Giving the money back to School District didn't mean the money would go directly to the School District. It goes back to the State, and he did not know if that meant the School District would get more money per pupil . Councilman Schneider asked how much money the School District was saying it needed because of what it was losing because of the increment districts. Mr. Qureshi stated the dollar numbers were fairly small . He felt it was an issue that could clearly be resolved with the School. District. He had told fir. Prairie at the last meeting that they would work on it and see if there was a way for the School District to get back some of what it was losing. Mr. Commers asked Mr. Pribyl to check with the School District regarding the dollar numbers. f J HRA AND CITY COUNCIL SPECIAL JOINT CONFERENCE MEETING SEPTEMBER 23 1986 PAGE 5 Mr. Qureshi stated the HRA still had to make a decision whether or not they wanted to capture the increment. Otherwise, they would lose it. He wanted some general guidance that the projects listed were the projects the HRA wanted to fund. Mayor Nee stated that, as a matter of principle, the City would rather have control over the tax base than the HRA, but as a practical matter, when it was added up right, it was better for the City to forego access to that tax base. Ms. Schnabel stated that the projects listed by Mr. Qureshi pretty much related to public improvements, nothing was specified towards private property development. How do the citizens perceive this when the HRA is expending a lot of money into public uses versus private development? Does the public get a negative feeling towards this or a positive feeling? Mr. Qureshi stated he felt if the public improvements are explained to the people properly, it can be shown how these improvements are helping everyone. Mr. Commers stated all the public improvements they have made so far have been pretty much tied to specific projects. The question now was whether or not the HRA felt comfortable using this to make purely public improvements which was not what it was intended for. Councilman Schneider stated it was how the people perceived public improvements. He has talked with people who ask him why the City was helping private developers; whereas, they rarely question the improvement when it is a road which appears to be helping everyone. Councilman Barnette stated he also gets the question of why the City is helping a private developer make more money. But, when it is explained to them that some of the money (using Lake Pointe as an example) will be used to develop a better inter- section, then people think it is a good idea. The perception he was getting was that if the City can show that these kind of improvements benefit the citizens, then the Improvements are a good idea; but, people do not want to see the City helping private developments that would probably happen anyway. Ms. Schnabel stated she felt it was an issue the HRA should definitely he sensitive to. Councilman Fitzpatrick stated they really do not know what the public reaction is going to be because they have not done the improvements yet. Mr. Commers asked how the HRA was going to know when an improvement was necessary or appropriate or when the community wanted it done. Mr. Qureshi stated the HRA would have to make that judgement. Mayor Nee stated the HRA will have to use good judgement regarding these improve- ments; however, some of the improvements seem to be self-evident. HRA AND CITY COUNCIL SPECIAL JOINT CONFERENCE MEETING, SEPTEMBER 23, 1986 PAGE 6 Mr. Commers stated he would like to hear the City Council 's opinion about the issue that now exists where the property owner of Rice Creek Plaza was threatening the HRA with an inverse condemnation suit if the NRA does not purchase the property at this time and where there is a potential dollar value agreed upon between the owner and the Citv. Mayor Nee stated the owner was saying that the public action by the HRA had damaged the property. He felt the public action had, in fact, added value to the property. He did not think the HRA should react to the inverse condemnation suit, but to what the public interest might be. Councilman Barnette stated whether the HRA owned the property or Mr. Levy did not make any difference to the tenants. The tenants are still going to be on a mont.h- to-month or year-to-year basis. He did not think the City should be in the real estate business on a long term basis, but they also know a project will go in on this property eventually. He stated he would not have any objection to the HRA purchasing the property, but he did not think they should do it under the cloud of a lawsuit. Councilman Schneider agreed with Councilman Barnette. Ms. Schnabel stated she still had a strong philosophical problem with the HRA owning a piece of property for any length of time unless they have a firm project. They decided at the last meeting to table any further consideration until the next meeting, hoping to know whether or not Mr. Lundgren's project is going to proceed. She had the feeling that if the Lundgren project does not go that certain HRA members, herself included, will not be interested in the purchase; and that, until they know they have a developer with a concrete development, they will not be interested in becoming landlords of the property with all its inherent prohlems. Ms. Schnabel stated the tax laws are getting worse as far as encouraging develop- ment, and she saw that as a real problem. She did not know if the HRA should tie themselves into something if they do not have a developer. Mr. Meyer stated he had also expressed the concern that because of a change in the tax laws, the HRA was faced with the decision of giving more help to another development, while Mr. Lundgren's project was floundering, and maybe they should indeed be "sweetening the pot" for Mr. Lundgren's project which is an important project. Mayor Nee stated he felt the southwest corner was a priority area the City has to resolve. If Mr. Lundgren's project was the right project, maybe they should give him a little more help. Mr. Qureshi stated he felt the NRA had to make a statement that it was their general policy to do improvements on site and public improvements to continue the increment. Mr. Commers stated it did seem foolish to give up the increment at this point. Ms. Schnagel stated that from the statements she had heard at this Meeting, if they assist the City by doing these improvements, then maybe it was in the City's best interest to continue what the HRA has been doing, at least for the time being. 1 HRA AND CITY COUNCIL SPECIAL JOINT CONFERENCE MEETING, SEPTEMBER 230 1986 PAGE 7 Mr. Qureshi stated they have to look at it from the perspective that this is needed to foster future quality development. Mr. Commers stated he felt the HRA members were in favor of that. Ms. Schnabel stated that regarding the University Ave. Corridor project, what she has seen so far of the plan was exciting and high quality. She felt it was good to change the image if it was done as it is being proposed, but it is going to be fairly costly. The thing that bothered her the most was that most of the improve- ments are cosmetic improvements. Councilman Barnette stated the perception people get coming into Fridley was not good. They see the used car lots, motor homes, fast food restaurants, and empty spaces. He did not think they could necessarily change all that, but he felt the cosmetics were important. The cosmetics will improve the image of Fridley, and that is what the people will see. Mayor Nee stated that every time he goes door to door campaigning, the comments get better and better in terms of the investments the citizens have made as individuals on landscaping and beautification activities the City now does, so the cosmetics are important. Councilman Goodspeed stated that every developer who wants to develop in Fridley is required by the City to put extra money into the project for landscaping and amenities. The City also has an obligation to live up to the same standards they require for the businesses. Mr. Qureshi stated the HRA seems to have agreed they want to retain the increment. Now, what level of commitment of public improvements did they want to make? He stated they need to develop some general guidelines from those listed for the HRA. N, Mr. Commers asked Staff to put together a list of things they have done in the past with some criteria and specific facts, so the HRA can look at it. He would also like Staff to put together some kind of schedule or timetable on each project so they know when the monies have to be expended. Ms. Schnabel stated that as time goes by, the members of the HRA or City Council could change, and maybe it was a good idea for the HRA to have a plan they should follow so they do not end up in the middle of a project with a changeover in members with different ideas. Mr. Qureshi stated that as he understood it, it was the general direction of the HRA to capture the increment, and Staff was asked to lay out a timetable that showed the projects they can logically do with the money coming in. OTHER BUSINESS: Mr. Qureshi stated he would like the HRA to approve the second billing from Barton-Aschmann. The first billing was approximately $3,000. ,r HRA AND CITY COUNCIL t SPECIAL JOINT CONFERENCE MEETING, SEPTEMBER 23, 1986 PAGE 8 MOTION BY MS. SCHNABEL, SECONDED BY MR. MEYER, TO APPROVE THE BILLING TO BARTON- ASCHMANN DATED SEPT. 2, 1986, IN THE AMOUNT OF $9,970.57. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ADJOURNMENT: The meeting was adjourned at 10:29 p.m. Respectfully submitted, �I LL Lyn a Saba Recording Secretary M CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9, 1986 CALL TO ORDER: Vice-Chairperson Schnabel called the October 9, 1986, Housing & Redevelopment Authority meeting to order at 7 :10 p.m. ROLL CALL: Members Present: Virginia Schnabel, Duane Prairie, John Meyer Members Absent: Larry Commers, Walter Rasmussen Others Present: Jock Robertson, HRA Executive Director Nasim Qureshi, City Manager Dave Newman, HRA Attorney Rick Pribyl, Finance Director Julie Burt, Asst. Finance Officer Barry Warner, Barton-Aschman Bob Levy, 100 S. 5th Street Sherrill Kuretich, Larkin, Hoffman, Daly & Lindgren Lou Lundgren (See attached list) APPROVAL OF SEPTEMBER 11 1986 HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION BY MR. PRAIRIE, SECONDED BY MR. MYER, TO APPROVE THE SEPTEMBER 11, 1986, HOUSING & REDEVELOPMENT AUTHORITY MINUTES AS WRITTEN. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLAREE THE MOTION CARRIED UNANIMOUSLY. 1. PRESENTATION BY BARTON-ASCHMAN REGARDING THE UNIVERSITY AVENUE CORRIDOR STUDY: Mr. Robertson stated Mr. Warner of Barton-Aschman is present this evening to review a master plan for the University Avenue Corridor. He stated this plan is a result of a four month effort with the Technical Advisory Committee. He stated the Committee met seven times with the consultant, Barton-Aschman, to consider the upgrading of University Avenue. Mr. Robertson stated the primary elements of the plan include highway landscaping, intersection resurfacing, median treatments, fence re- moval and modification, key intersection treatments, and lighting. He stated the total cost to implement this plan is about $2,000,000 and, if plans proceed, it would probably be a two to five year project. He stated the improvements would significantly transform the rural image of University Avenue from the freeway to 85th Avenue. HOUSING & REDEVELOPMENT AUTHORITY MEETING OCTOBER 9_,_ 1986 PAGE 2 Mr. Robertson stated that the staff will review the plan and then submit it to the HRA and City Council for concept approval during November so priorities can be set for the actual implement- ation. 4 W. Barry Warner, Senior Associate with Barton-Aschman, presented the master plan. He stated the University Avenue Corridor is representative of most trunk corridors with a lot of different { land uses abutting it. W. Warner stated the Technical Advisory Committee, which was established to study the corridor, consisted of business people, residents, and representatives of the County and State Highway Departments. He stated Barton-Aschman also conducted interviews with persons in the corridor to obtain their input on what they would like for the future of University Avenue. Mr. Warner stated the first task was to define the issues, analyze opportunities and discuss goals and objectives. He stated the next step was to generate some alternatives which have been defined as the mini, midi and maxi strategy and then to prepare a plan with sketches and cost estimates. He stated everyone had different feelings on what they envisioned for University Avenue. Mr. Warner stated the Minnesota Department of Transportation (MnDOT) had concerns regarding liability and maintenance. He stated the business people wanted visibility, access and an attractive setting for their businesses. He stated the residents were concerned with screening, noise reduction and enhancing the image of the corridor. Mr. Warner stated the goals the Technical Advisory Committee (TAC) established were (1) improve community image and visual appearance; (2) create a distinct community identity; (3) treat right-of-way and property edge commensurate with planned use type; (4) provide for bicycle and pedestrian movement within or adjacent to the corridor; (5) improve visual quality of private parcels abutting the corridor; and (6) improve access from University Avenue to adjacent abutting parcels. Mr. Warner stated the plan presented this evening is the result of the work of the Technical Advisory Committee, with participation by the City staff. He stated the plan addresses the landscaping, lighting and fencing. He stated it provides for minimal landscaping and MnDOT would provide adequate trimming once a year and maintain the ground cover by mowing three times a year. Mr. Warner stated it was felt there should be a gradual reforestation plan developed with the private and public sector working together towards this goal. He stated one of the major constraints was that MnDOT was looking at minimal maintenance. Mr. Warner stated the plan clearly delineates location of trees and changes to be made in the ground cover. ;s HOUSING & REDEVELOPMENT AUTHORITY MEETING OCTOBER 9 1986 PAGE 3 Mr. Warner stated in order to accentuate the principal inter- sections, there would be a double row of trees on either side and a single row of trees wherever there is a frontage road. He stated next to the frontage road, ornamental trees would be used to pro- vide a statement of color. He stated where there are residential land uses, coniferous screening would be established. He stated some coniferous trees could be planted behind major retail busi- nesses. He stated shrubs and vines may be planted to screen the existing chain link fence. He stated it was determined where there should be upper story trees, plants and shrubs, and ornamental trees and what species to utilize. Mr. Warner stated the plan involves a reseeding program. He stated , even though MnDOT would cut the grass three times a year, if it is maintained as a lawn, it would require the City to mow about once every ten days. He stated the business people felt the grass that is there now is not attractive and the ground cover is the most distinc- tive visual element in the corridor. Mr. Warner stated it is recommended, at this time, the drainage swales be maintained, but not converted to a full urban section primarily due to the cost. He stated MnDOT did not have any interest in this area. Mr. Warner stated several lighting alternatives were considered by the TAC and recommendations made by the City staff. He stated the first consideration was there should be high level lighting placed in the median from one end of the corridor to the other. He stated single poles would be used at the south end of the corridor, with double poles in the north end. Mr. Warner stated MnDOT had some re- servations as they didn't feel University Avenue warranted this level of lighting. W. Warner stated another alternative was to lower the lighting by using a 30 foot pole, with more of an architecturally treated light, on the frontage roads only. He stated this would provide an attractive setting for businesses adjacent to the frontage roads and help delineate the location of the frontage roads. He stated they attempted to light the roadway to a standard acceptable from the highway design standpoint. He stated he felt this alternative is more appropriate. ME. Warner stated landscaping the median was discussed. He stated if this is done, a jersey barrier would have to be provided. He stated MnDOT maintains that if trees are installed in the median, cars must be protected. He stated it is recommended this idea not be pursued as it would be very costly and difficult to maintain, primarily when snow removal is necessary. Mr. Warner stated it is recommended the chain link fence abutting commercial properties be removed, but remain in the residential uses. He stated it was felt when the existing fence goes through its life cycle, it should be replaced with vinyl-clad fencing. Ai HOUSING & REDEVELOPMENT AUTHORITY MEETING OCTOBER 9,_ 1986 PAGE 4 fel W. Warner stated there was a recommendation that all hard sur- faced items, whether it be signals, lights, poles, etc. , to be painted a uniform dark color such as brown to blend into the land- scaping. Mr. Warner stated specific treatments for different intersections were recommended. He stated at 85th Avenue, brick and wrought iron are used to make a statement that you are entering the City of Fridley. He stated the median in the roadway is treated with the same brick or inter-locking paving system, with a backdrop of coni- ferous ferous I trees flanked on either side by wrought iron fencing and brick columns. He stated this same design was earmarked for the 57th Avenue intersection. Mr. Warner stated at the Mississippi Street and Osborne Road inter- sections, double rows of canopy trees would be provided, with colorful landscaping with flowering shrubs and trees, and the wrought iron fence with brick columns. He stated the same family of materials 1 would be used at all the intersections and sidewalks would be pro- vided to the bus stops. Mr. Warner stated it was recommended the reader board at the City Hall be moved to Columbia Arena. Mr. Warner submitted cost estimates for this plan covering reseeding, reforestation, median-urban section from 69th to 85th Avenue, lighting options (median and frontage road), and fencing. The costs were further broken down for each interesection, 57th Avenue, Mississippi Street, Osborne Road and 85th Avenue. Mr. Warren stated the total estimated costs are $2,000,000 for all the improvements. Mr. Warner stated the master plan meets or surpasses the majority of the objectives of the TAC, but would take some time to accomplish. He stated it would take commitment and may involve both the public and private sector. Mr. Warren stated at the onset of this process, everyone obviously had different feelings, however, as discussions progressed, there was a lot of compromises. W. Qureshi asked Mr. Warner if he had estimates of on-going mainten- ance costs for these improvements. Mr. Warner stated he did not have these figures available at this time, however, several factors have to be taken into consideration such as whether this would be maintained by the public or if the private sector assumes some responsibility. He stated he didn't have specific figures at this time, but could supply them. W. Qureshi stated he felt it would be important to know the maintenance costs. HOUSING & REDEVELOPMENT AUTHORITY MEETING OCTOBER 9 1986 PAGE 5 Mr. Qureshi stated if the concept of this plan is approved, he asked if the different elements contain enough detail to allow implementation over a number of years. W. Warner stated it is assumed the improvements would be done under the public bidding process and some detailed engineering surveys may have to be done, especially for the intersections. Ms. Schnabel stated it seemed the TAC members were most interested in the condition of the grass and fence and access to the bus shelters, particularly in the winter. She stated she knows there are a lot of maintenance costs involved and this should be a legitimate concern. Mr. Qureshi stated no such trees should be planted that would obstruct businesses. Mr. Warner. stated the plant matrix shows which canopy trees would be acceptable such as Honey Locust because they are more open and transparent in comparison to a Maple which is much more dense. Ms. Schnabel stated the last thing they would want to do is block the businesses' exposure. Mr. Prairie asked if the costs submitted were based on a "midi" plan. Mr. Warnerstated the TAC reviewed the different elements and felt this plan was, basically, a midi. Mr. Prairie asked if there is any timetable for these improvements. Mr. Warren felt if the resources were available to pursue it, it could be accomplished in a three to five year staging. He stated a five year target for the plan is reasonable. Mr. Warner stated the opportunity to work with MnDOT is there as they were receptive to many of these ideas. He felt MnDOT took a much more liberal view, when the final plan was submitted, then when the process first began. Ms. Schnabel felt it would be helpful to establish what elements of the plan would be accomplished at certain times so perhaps the business community and residential area in that section can partici- pate. She stated it would be helpful if the business people planted the conifers and took an interest in helping to maintain the median in front of their business. Ms. Schnabel stated an area which she felt the business community wished to improve was the drainage ditches. Mr. Prairie stated it would be expensive to have underground drain- age. He also questioned how they could eliminate the cattails. j HOUSING & REDEVELOPMENT AUTHORITY MEETING OCTOBER 9 1986 PAGE 6 Mr. Warner stated runoff water would have to be piped and this would involve a lot of agencies such as the Rice Creek Watershed District and the Department of Transportation. He stated MnDOT did not want to put in an urban section. He stated the cattails don't appear uniformly in the ditches. He felt with some regrading , water would not be standing. Then seeding may help this problem. Mr. Qureshi stated it would be no problem to eliminate the cattails, but stated they do serve a useful purpose for filtration. Ms. Schnabel stated if the chain link fence was removed on the east side of University from 57th Avenue to Mississippi Street, the grass improved, and lighting installed on the frontage road, it would visually open up the corridor. Councilman Schneider asked if an inflation factor was considered in the cost estimate. Mr. Warner stated a 10% inflation was included in the estimate. Mr. Qureshi asked if anything of this nature has been done in the metropolitan area. He felt it would be helpful to actually see how elements of the plan have been implemented. Mr. Warner stated there is a development at 98th and Lyndale in Bloomington which has similar characteristics. Mr. Qureshi asked what special elements were considered. Mr. Warner stated a variety of vertical elements were reviewed such as fountains, banners, clock tower, etc. He stated the majority of the TAC members felt they were too significant and didn't fit in with the suburban feeling. Ms. Schnabel stated she personally didn't like the banners and the clock tower idea was not well received. She felt the members wanted something a little more restrained. Ms. Schnabel stated she felt this was a quality plan which would help promote a positive image for the City. Mr. Qureshi asked if there was discussion on what means would be taken to maintain the grass area and if a sprinkling system was necessary. Mr. Warner stated he wouldn't recommend a sprinkling system for the corridor. He felt a good grass mixture would suffice and survive dur- ing the drier months. He stated there is also a grass that tolerates salt and would suggest this be part of the grass mixture. Mr. Meyer stated his only reservation is the gates. He stated, to him, this means do not enter and is not hospitable. He felt they would be costly and expensive to maintain. He felt the other elements of the plan are refreshing and would "tidy-up" the corridor. t HOUSING & REDEVELOPMENT AUTHORITY MEETING OCTOBER 9 1986 PAGE 7 Ms. Schnabel stated she had some of these reservations herself. She stated there was discussion on whether these gates should be lower. She stated if they were lower, there may be a problem with children jumping over them or it may also reduce their visibility. Councilman Schneider asked if any input was received by other persons besides those serving on the Technical Advisory Committee. Ms. Schnabel stated Barton-Aschman interviewed a number of people along the corridor regarding their concerns. She stated as the Committee process proceeded, less people attended. She stated the impetus for this study came from the people in the north and there was really little input from them. She stated she would be sensitive if they had a lot of criticism because she felt they didn't partici- pate. She stated the feeling she got was they just wanted the cattails removed. She felt a lot more input was needed from people before a commitment is made to proceed with this plan. Mr. Prairie stated there is no question something should be done to improve the University Avenue Corridor, but he didn't think it would cost this much. Mr. Meyer felt if they spent half of this estimated amount, they could probably still have a tremendous project. Mr. Robertson stated he had a different perspective on the partici- pation. He felt participation decreased after some of the controversial items were settled. Mr. Qureshi felt there should be a hearing to involve participation by the business community and residents and receive their input. Ms. Schnabel thanked Mr. Warner for his presentation. 2. REPORT ON LAKE POINTE CORPORATE CENTER: Mr. Robertson stated the HRA has a copy of a letter written by Dave Newman to Mr. Weir, Woodbridge Properties, Inc. , in which he answers several issues raised by Mr. Eric Nesset. He stated the issues involved State aid road funding, location of the proposed road, and turnback property located along Highway 65. Mr. Robertson stated Lake Pointe Drive is designated as a State aid street and Mr. Weir wished to know if they would have any additional funds going into their project by this designation. He stated Mr. Newman's answer was they would not as the City receives these funds based on a certain formula. Mr. Robertson stated Mr. Weir's second question concerned the align- ment for a 30 mph curve at the north end of their project and wondered if this would drastically reduce their building area. Mr. Robertson HOUSING & REDEVELOPMENT AUTHORITY MEETING OCTOBER 9 1986 PAGE 8 stated when the HRA approved the plat, it was known there would be a minor adjustment when the curve was engineered by the consultant. j He stated when the engineering was completed, at the point the first building, the curve was almost at the same distance as shown in the preliminary plat. it W. Robertson stated the third issue raised involved the question of turnback property along Highway 65. He stated staff's position was that as soon as the title is researched and engineering completed on the intersection with West Moore Lake Drive and Highway 65, the City would be in a position to consider turning the title over to Woodbridge. He stated this may take several months because of the process involved. 1 Mr. Newman called the HRA's attention to a letter he had submitted to them dated September 23, 1986 regarding the interpretation of the subordination conditions in the redevelopment contract between Lake Pointe and the HRA. He stated the intent is that this is a true subordination clause. Mr. Newman outlined the scenarios contained in his letter in the event there was a foreclosure. He stated the zoning restrictions would still be in force, so whoever owned the property would have to comply. Mr. Newman stated in the last several weeks, the contractor has stated he feels there is a larger amount of peat on this site than what was disclosed in the soil tests. He stated we have taken the position that the contract was for a lump sum. Mr. Qureshi stated these issues are submitted as informational and require no action by the HRA. 3. UPDATE ON LUNDGREN'S UNIVERSITY AVENUE APARTMENT PROJECT: Mr. Qureshi, City Manager, stated the HRA entered into a development agreement with Mr. Lundgren last year. He stated the agreement pro- vided that the developer perform certain obligations by August 1, 1986 or else he would be in default. He stated there was a clause in the agreement which would allow the developer an additional 60 days to cure the default. He stated the HRA proceeded on this basis and this period ended on October 1, 1986. Mr. Qureshi stated he has indicated to the developer that the additional time given to him to cure the default has expired. He stated unless Mr. Lundgren could have come up with a firm financial commitment, with no stipulations other than land control, he would recommend the HRA draw on the letter of credit. He stated there no longer is any legal relationship with the developer , the HRA can draw on the letter of credit. letter of credit. Ms. Kuretich, attorney representing Mr. Lundgren, stated she was recently retained by Mr. Lundgren to represent him in conjunction with this project. She stated she understands this project has a long history and the development agreement was in existance for a considerable period of time. She stated due to the Tax Reform Act, and the pending nature of that action, it has been difficult for any developer to put together a financing package. L HOUSING & REDEVELOPMENT AUTHORITY MEETING OCTOBER 9 1986 PAGE 9 She stated because of the uncertainty with not knowing what would happen in regard to the tax reform, it has been impossible to raise financing. Ms. Kuretich stated Mr. Lundgren is $1,000,000 short of the funds necessary to finance this project and he is working diligently to raise the equity. She stated since the terms of the Tax Reform Act are now known, there is some framework in which to work. She requested the HRA not draw on Mr. Lundgren's letter of credit for at least another 30 days. She stated this would not take away the HRA's ability to negotiate with other developers in the meantime. Mr. Lundgren stated he is going to Chicago next week and believed he could raise the necessary financing in 30 days. lfe stated he is ready to proceed as far as the construction. He stated, at the present time, he has $700,000 at risk in the project. He stated if the HRA can be indulgent for a short time more, he believed there would be a turning point. Mr. Lundgren stated he has over $240,000 invested in the plans alone and has with surveying and soil tests and, legal fees, the amount exceeds $500,000. He stated the other $200,000 involves the letter of credit. Mr. Lundgren stated he needs $800,000 to have 100'/ of the financing. He stated he would borrow this amount and sell a part of the equity to persons who purchase the zero coupon bonds. Ms. Schnabel asked Mr. Lundgren if he doesn't find someone who is interested in the zero coupon bonds, what would be the status of the project. Mr. Lundgren stated the people he is meeting with in Chicago will handle the issue, assuming a deal can be structured. He stated if he cannot come up with satisfactory financing for the total project in 32 days the HRA can cash the letter of credit. Mr. Meyer stated assuming the financing can be obtained and the project proceeds, he asked if there would be any change in the quality of the development or rents to be charged. Mr. Lundgren stated the rents are set by the market place. He stated he is working on ways to reduce the costs. He stated, however, the staff and HRA would have to approve any changes proposed. Ms. Kuretich stated when Mr. Lundgren entered into the development agreement with the HRA, it was assumed tax exempt bonds could be used. She stated the lover the interest rate, the greater the mortgage that could be obtained. She stated when the Tax Reform Act was introduced, it became impossible to use tax exempt financing for housing. She stated rent restrictions were so severe that you couldn't charge rents high enough to pay the mortgage which means going into the conventional market at higher interest rates. 1 HOUSING & REDEVELOPMENT AUTHORITY MEETING OCTOBER 6 1986 PAGE 10 Ms. Kuretich stated Mr. Lundgren wants to go into the equity market and find the way to raise the difference between the equity he can provide and the mortgage amount available to him. She stated up until the Tax Reform Act was signed, no one could even obtain equity. a Mr. Newman stated as far as the HRA's obligation to Mr. Lundgren, there is none. He stated he understands, from talking to Ms. Kure- tich, they are not contesting the fact the HRA has the right to negotiate with another developer. He stated they are only requesting the HRA not to draw on the letter of credit for 30 days. Ms. Schnabel stated the HRA's next meeting is not until November 13 so if they agreed not to draw on this letter of credit for 30 days, it would actually be over this time period. Mr. Qureshi stated if the HRA approves Mr. Lundgren's request, it should only be for 30 days to give staff time to review the proposal and submit a report for the meeting. Mr. Meyer asked what specific changes were made in the plans for this project. Mr. Lundgren stated the swimming pool area had a complicated pre-cast beam roof section with a skylight. He stated this was changed and in that area there was a stairway to the pool and a handicapped ramp. He stated they have changed the pool so it is on the same level as the party room and there is no need for the stairs or ramp. He stated they re-examined costs in order to obtain a $500,000 reduction and rebid several of the items. He stated the changes would have to be shown in detail and the HRA agree to them, if the project proceeds. Mr. Meyer stated he would take a dim view if the quality of the project was lowered. Mr. Lundgren stated he knows staff wishes a high quality building and he would provide such a building. Mayor Nee stated it didn't seem, by not drawing on the letter of credit for 30 days, to put the HRA in an adverse position. He stated the option is still open for the HRA to review any other proposals they receive. MOTION BY MR. MEYER, SECONDED BY M. PRAIRIE, TO DEFER DRAWING ON MR. LUNDGREN'S LETTER OF CREDIT TO NOVEMBER 10, 1986. Ms. Schnabel stated the 30 days comes before the HRA's next meeting and asked Mr. Meyer if it was his intent for staff to activate this procedure. ` HOUSING & REDEVELOPMENT AUTHORITY MEETIRG OCTOBER 9 1986 PACE 11 Mr. Meyer stated that was not his intent. He stated it would take an official action by the HRA to activate the letter of credit. Mr. Newman stated staff would not take the necessary steps to draw on the letter of credit until an action was taken by the HRA, how- ever, staff would like to know where Mr. Lundgren stands before the HRA's next meeting. UPON A VOICE VOTE TAKEN ON THE ABOVE MOTION, ALL VOTED AYE, AND VICE- CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. UPDATE ON NEGOTIATIONS FOR ACQUISITION OF THE RICE PLAZA SHOPFING CENTER. Mr. Qureshi, City Manager, stated there has been discussion by the HRA regarding the Rice Plaza Shopping Center. He stated staff's recommendation is not to acquire property unless the HRA has a need for it. Ms. Schnabel stated in the memo the HRA received from Samantha Orduno, it was indicated that certain members of the Council supported this acquisition. She stated she didn't come away from this joint meeting with as strong a feeling. W. Qureshi stated if the HRA decided to acquire the property, it may have some political implications for the Council. Mayor Nee stated he does not have a political problem with the HRA owning the property, but it doesn't seem like a very good idea. Councilman Schneider stated he doesn't have a problem with the HRA acquiring this property, if they felt something is relatively imminent for development and if it is the right price. Mr. Levy, representing Rice Plaza Shopping Center, stated they have lost prospective tenants when they alert them to the possibilities of what may happen to this property. He stated Ron's Pub is out of business because of the owner's health problems. He stated a buyer for this business was lost because of the possibility of the space being taken. Mr. Levy stated, in regard to W. Lundgren's project, tax exempt financing is still available and being used for multiple family housing. He cited examples in Robbinsdale and Brooklyn Center where housing bonds were issued. He stated he has no idea what the differ- ences were in those projects compared to Mr. Lundgren's. Mr. Qureshi stated no one is saying there are no projects being financed under tax exempt bonds. He stated because of rent restrictions, it would affect the quality of the project. 1 � HOUSING & REDEVELOPMENT AUTHOPITY MEETING OCTOBER 9 1986 PAGE 12 Mr. Meyer stated the question on the acquisition of this property was deferred on the basis the Lundgren project was still in abey- ance. a Mr. Levy stated his client has been looking for a resolution to this issue and the matter has been pending since May. He stated if the HRA wishes to defer action, it is their prerogative, but want them to understand his client has directed him to take some j action and he would file a mandamus action. He stated this type of action is expedited through the court, and would include counts of business liable. j Mr. Newman stated there is no question the HRA would incur some legal fees right away, after this action is filed. He stated after 30 days, they would probably increase significantly. He stated he talked with Mr. Levy this afternoon and he recognizes that if the HRA denies his request, he would commence litigation. He stated a willingness was expressed to keep the lines of communication open 1 in the event things changed. Mr. prairie stated this issue has been discussed so many times that and Mr. Commers, members, Mr. Rasmussen of the absent the feelings are known. ce is $1,008,000. Mr. Newman stated Mr. Levy stated their asking pri the County's appraisal was $974,000. i Mr. Prairie stated he didn't have so much of a problem with the dollar amount, but what will happen to the property and when is the real issue. Mayor Nee asked if the HRA had funds to cover acquisition of this property. Ms. Schnabel stated if they sacrifice somewhere else. Mr. Meyer stated if the Lundgren development proceeds, it would be desirable to acquire this property. Mr. Qureshi stated if Mr. Lundgren's project had proceeded, the HRA would have the funds to acquire this property. He stated the question is if the HRA wants to acquire property where they actually don't have a project. Mr. Meyer stated he recognizes the argument that the HRA doesn't acquire property unless they have a need for it. He stated, on the other hand, this is a unique situation where an owner has felt he is aggrieved enough to get into a legal action. Mr. Qureshi felt the decision should be made on the general policy and not the legal issue. He stated the HRA should consider that there are other properties in this same situation. t MOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9. 1986 PAGE 13 Councilman Schneider asked if the HRA acquired the property, if there would be a cash flow. Mr. Levy stated the parcel includes vacant land which does not generate revenue. He stated he would have to check the rentals as there is one vacancy and another short-term lease. He stated if the HRA acquires the property, a decision would have to be made if it was in their best interests to renew leases. MOTION BY MR. PRAIRIE, TO NOT ACQUIRE THE RICE PLAZA SHOPPING CENTER AT THIS TIME. VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION FAILED FOR LACK OF A SECOND. Mr. Levy stated his client feels used and abused by this process of the HRA. He stated discussion began in May and was deferred until August to reach an agreement on the dollar figure. He stated, in September, the item was tabled until this meeting, and now not even a motion can get passed. Mr. Levy stated the bottom line is the HRA was waiting to see what developed with Mr. Lundgren's project before this issue was addressed. He stated this is one of the most frustrating experiences his father will have in real estate. W. Levy stated his father built Holly Center in 1958 and then Rice Plaza, when others were building south, and tried to be a good citizen for 30 years. He stated his father was not shown the same level of respect in the HRA's response to this issue. He stated he felt the answer given this evening could have come six months ago and they would have been finished with the court process. Ms. Schnabel stated she appreciated the Levy contribution to the community. She stated this isn't an action against the Levy's, but a philosophical issue of the HRA owning property. Mr. Newman stated he felt what has happened is a number of the HRA members were philosophically opposed and, if W. Lundgren's project had proceeded, the HRA would have the means to purchase the property and satisfy W. Levy's needs. He felt it is not the question of trying to avoid the issue, but a process that was used to accomplish the goals and objectives of the HRA and, unfortunately, it failed. 5. STATUS REPORT ON BELGARDE'S UNIVERSITY AVENUE APARTMENT PROJECT: Mr. Robertson stated that a meeting was Meld at the Springbrook Nature Center with the Springbrook Nature Foundation, the developer of this project and City staff. He stated the developer's plans were presented and the architectural elements reviewed along with the ponding, drainage, and berming. HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCTOBER 9, 1986 PAGE 14 i Mr. Robertson stated the berms would be located on the project property, as well as the Nature Center property. He stated there was some degree of agreement by the Nature Center Foundation that this would enhance the center. He stated screening, land- scaping and lot access was also discussed. i Mr. Robertson stated the Foundation understands that the developer will begin the process for rezoning. He stated staff has reviewed subsequent improvements, changes in the site plan, aesthetics and landscaping and is ready to recommend approval of this project. Mr. Robertson stated the request for financing assistance made to li the HRA has not changed since the last time discussions were held on this project. He stated the HRA did agree to provide assistance in the amount of $850,000 for purchase of the property which would j be returned to the HRA in the form of a second mortgage. Mr . Qureshi stated the HRA had given conceptual approval of the 1 agreement and staff is now working to finalize this agreement. He stated when this is completed, it will be brought back to the HRA for action. Ms. Schnabel asked if any response was received from the YMCA. Mr. Robertson stated the only response received was regarding the alignment of the road. 6. CONSIDERATION OF A REQUEST BY GERALD PASCHKE FOR THE HRA TO ISSUE A CERTIFICATE OF OCCUPANCY AND RELEASE $13,500 IN SOIL CORRECTION ASSISTANCE FOR LOT 4. BLOCK 4. UNIVERSITY INDUSTRIAL PARK: l Mr. Qureshi, City Manager, stated Mr. Paschke's building is substantially completed, except for a few areas where items have not as yet been installed. He stated his only concern involves the driveway easements which have not been recorded. He stated if the HRA wishes to release the $13,500 for soil correction assistance and authorize staff to issue a Certificate of Completion, it should be subject to the City obtaining the driveway easements. MOTION BY MR. MEYER, SECONDED BY MR. PRAIRIE, TO APPROVE RELEASING $13,500 IN SOIL CORRECTION ASSISTANCE FOR LOT 4, BLOCK 4, UNIVERSITY INDUSTRIAL PARK, SUBJECT TO THE NECESSARY EASEMENTS BEING RECORDED AT THE COUNTY FOR THE DRIVEWAYS. THESE EASEMENTS ARE FOR 50 FEET BETWEEN LOTS 4 AND 7 , AND EASEMENT TO COVER THE WESTERLY 50 FEET OF LOTS 1,2,3,4, 7 AND 8, BLOCK 4, UNVERSITY INDUSTRIAL PARK. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. i HOUSING & REDEVELOPMENT AUTHORITY MEETING OCTOBER 9 1986 PAGE is 7. CONSIDERATION OF A RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT BETWEEN THE FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY AND SUBTERRANEAN ENGINEERING CORPORATION FOR SOIL AND ENGINEERING SUPPORT FOR THE DEVELOPMENT OF THE LAKE POINTE CORPORATE CENTER: Mr . Robertson stated at the last meeting, the HRA approved contracts for Sunde to be the supervising engineer for the Lake Pointe develop- ment. He stated Subterranean Engineering was initially retained by Woodbridge Properties to conduct preliminary soil borings and analysis for their development site. He stated they will continue to provide engineering support for this project and, for reporting purposes, both Sunde and Subterranean prefer this be handled by a direct contract with the HRA /City. He stated the work undertakin by Subterranean, however, will be under the direction of the supervising engineer. MOTION BY MR. PRAIRIE, SECONDED BY MR. MEYER, TO APPROVE RESOLUTION NO. HRA 19-1986. UPON A VOICE VOTE, ALL VOTING AYE, VIDE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 8. CLAIMS: MOTION BY MR. PRAIRIE, SECONDED BY Int. MEYER, TO APPROVE THE CLAIMS AS SUBMITTED. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 9. OTHER BUSINESS: Mr. Robertson stated the Northern Mayors Association is undertaking an analysis to promote economic development in the northern suburbs. He stated a comparison would be made involving other metropolitan reg.ions in the United States. He stated the report would be avail- able in early February and felt it would give good background data on what is happening in the marketplace today. ADJOURNMENT MOTION BY MR. PRAIRIE, SECONDED BY MR. MEYER, TO ADJOURN THE MEETING. UPON AIOV CE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE OCTOBER 9, 1986 HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 11:05 p.m. Respectfully submitted, Carole Haddad Recording Secretary 1 ' O 7Ae 't 0 - 1 RESOLUTION NO. HRA- 1986 A RESOLUTION APPROVING THE EXECUTION OF A CONTRACT FOR PRIVATE DEVELOPMENT WITH THE UNIVERSITY AVENUE ASSOCIATES, A MINNESOTA PARTNERSHIP IT IS HEREBY RESOLVED by the Board of Commissioners (the "Board") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority") as follows: 1. Recitals: A. The Authority has all the powers of a housing and redevelopment authority under the Municipal Housing and Redevelopment Act, Minnesota Statutes, Sections 462.411 to 461.716, inclusive, as amended (the "Act") . B. In furtherance of the objectives of the Act, the Authority has undertaken a program to acquire, or otherwise promote development of open or undeveloped land and in this connection is engaged incarrying out the redevelopment project known as the Authority's redevelopment Project No. 1 (the "Redevelopment Project") in an area (the "Project Area") located in the City. C. There has been prepared and approved by the Authority and the City Council of the City, pursuant to the Act, a Modified Redevelopment Plan for the Redevelopment Project (the "Redevelopment Plan") . D. In order to achieve the objectives of the Redevelopment Plan and particularly to make the land in the Project Area available for development by private enterprise in conformance with the Redevelopment Plan, the Authority has determined to provide substantial aid and assistance in connection with the Redevelopment Plan. E. The University Avenue Associates, a Minnesota partnership, has presented the Authority with a proposal for the construction, within the Project Area, of a 358 unit apartment complex and a certain Contract for Private Development between the Authority and the University Avenue Associates (the "Development Contract") , stating the terms and conditions of such development and the Authority's responsibilities respecting the assistance thereof. F. The Board hereby approves the Contract for Private Development and authorizees the Chairman and Executive Director to execute the same on behalf of the Authority, with such additions and modifications as those officers may deem necessary. G. Upon execution and delivery of the Development Contract, the 1A RESOLUTION N0. HRA-=1986 PAGE 2 officers and employees of the Authority are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the Authority to implement the Development Contract. PASSED AND ADOPTED By THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS _ DAY OF. , 1986. L�WERENCE Com► CHAIRMAN HOUSING AMID RIDEVELOpM r AUTHORITY ATTEST: JOHN "JOCK" ROBERTSON, EXDCITrIVE DIRECTOR HOUSING AND REDEVELOPMENT AUTHORITY IB aIMF CITY OF FRIDLLY CIVIC CENI .k 63+1 l'\I\ERSII'Y AVE. N.E. FRInLEI MINNESOTA 55432 - PHONE 4612) 571-3-1�O November 5, 1986 Linda Fisher Larkin, Hoffman, Daly and Lindgren 1500 Northwestern Financial Center 7900 Xerxes Avenue South Mels. , Mlh 55431 RE: Stipulations and Submittals for the North Park Estates Project. Dear Ifs. Fisher: Pursuant to our last oornversation, I have onmpiled the list of stipulations which represent both the previously agreed upon stipulations ana a few new ana modified items which are being added by the direction of the City Manaqer and Public Works Director. Also included are the original detailed stipulations that we agreed to regarding the landscaping of the Nature Center berm. 7hese are described in items IA thru M Additional stipulations and modifications, which I should call to your attention, exist on: Plat Conditions modified iter. 2 and new items 5 and 6; Architectural Refinements, modified item: 7, and an additional item 11; General Landscaping Requirements, modified item 6, and additional items 11 and 12; Pond Refinements additional item 3. As previously discussed, several submittals will be necessary in order to facilitate council review of the rezoning and platting on November 17, 1986. Please arrange to have submitted the following items by November 13, 1986: A. Refined storm water drainage plans which include: provisions for siltation, quality pond design► anticipated maintenance of systems, and treatment of landscaping around the development and Nature Center ponds. B. Redrafting of landscaping with the approved modifications. C. Redraw the preliminary plat to include 33 foot right-of-way on 83rd Avenue. D. Refine building elevations with specific definitions for all facade materials. E. Clarify amenity package by removing any ambiguity. 1C Linda Fisher Nweaber 5, 1986 Page 2 an application for a variance for 9 foot parking Finally, we are anticipating stalls, along with defined hardships, and a contingency plan showing the impact of not providing to foot stalls on the overall layout. A copy of a recent stall size variances request is enclosed your review. please call if you have any questions or concerns regarding these items or if you will be unable to meet the above referenced time table. Sincerely, James L. Robinson Planning Coordinator JLR/im cc: Jock Robertsonv John Flora Dav id Newman C86-513 ID NORTH PARK ESTAI ES ZOA 186-05 P.S. #M5 NATLRE CENTER INTEWACE; REFINBEMM 1. PROVIDE IMPROVEMENTS TO NATURE CENTER BERM LANDSCAPING AS AGREED ON OCTOBER 22, 1986: A. PROVIDE 12 ADDITIONAL OAK TREES ALL ALONG BERM TO INCLUDE 6 - 2 3 - 3" AND 3 - 4" TREES. B. SLMAC - OUT; CHANGE TO HIGHBUSH CRANBERRY 18" - 24" IN SIZE. BLACK CHOKE OUT; CHANGE TO HIGHBUSH CRANBERRY 18" - 24" IN SIZE. ADD ADDITIONAL SHRUBBERY TO BERM TO SCREEN THIRD GARAGE FROM SOUTH. (WORK WITH NATURE CENTER DIRECTOR) . C. ASH - OUT; CHANCE TO SILVEk MAPLE 2 1/2' IN SIZE. D. PROVIDE NORWAY SPRUCE 1N ADDITION TO THOSE SPRUCE PLANNED. 3' - 8' IN SIZE. E. NbRE ET4PHAS I S ON PLANT I NGS NEAR TON' OF BERM. i 2. SHOW FENCE ON PLAN, TRAIL TO BE ON THE DEVELOPMENT SIDE OF THE FENCE. FENCE GENERALLY TO BE LOCATED WEST OF TRAIL AND ON THE DEVELOPMENT SIDE OF THE BERM. EXCEPT, LOCATION ON LARGE BERM TO BE CNV NATURE CENTER SIDE OF BERM. 3. FENCE TO BE 6' GREEN VINYL CLAD WITH NO TOP RAIL. 4. FENCE GATES TO BE TURN STYLE DESIGN. SELECTION TO BE APPROVED BY NATURE CENTER DIRECTOR. 5. CONTINUE GERMING AND SEEDING ON NATURE CENTER TO 85TH AVENUE N.E. AND AROUND CORNER IF EXCESS FILL IS AVAILABLE. 6. CONTINUE SECURITY FENCE TO 50' BEYOND NORTH OF DEVELOPMENT AM 50' TO THE WEST ON THE SOUTHERN END OF THE SITE. 7. POND DEPTH ( IN NATURE CENTER) TO BE 5' AT Na;�lAL WATER LEVEL. LOCATION AND SIZE TO BE APPROVED BY NATURE CENTER DIRECTOR. 8. DEVELOPER TO INSTALL APPROPRIATE WALKWAY CONNECTIONS ON NORTH AND SOUTH TO EXISTING NATURE CENTER TRAIL. 1E NATURE CENTER INTERFACE: REF I WJ&NTS PAGE 2 9. SEED MIX ON NATURE CENTER TO INCLUDE WOODLAND AND PRAIRIE FLOWEk MIXTURES. SEED TO BE KLCHED. 10. CONSTRUCTION ZONE TO BE 9"N ON GRADING PLAN AND APPROVED. TREES TO BE REMOVED TO BE MARKED AND APPROVED BY NATURE CENTER DIRECTOR. 11. TREES TO BE SAVED TO BE PROTECTED BY SNOW FENCE: PLACEMENT ASSISTED BY NATURE CENTER DIRECTOR. 12. PROVIDE A COORDINATED GERMING AND LANDSCAPE PLAN. 1F N3UH PARK ESTATES ZOA #86-05 P.s. #8645 FLAT OD I T I CNS 1. DEVELOPER SUBJECT TO FAIR SHARE OF ASSESSMENTS ON A POSSIBLE FUTURE ROAD ALONG THE NORTH END OF DEVLOPMENT SITE. 2. PROPERTY OWNER AGREES THAT PROPOSED LOT 2, BLOCK 1, NORTH PARK ESTATES IS SUBJECT TO A 60 FOOT STREET EASEMENT RUNNING GENERALLY NORTH AND SOUTH TO ALLOW FOR FUTURE STREET CONNECTIONS BETWEEN 83RD AVENUE AND 85TH AVENUE. AGREEMENT TO BE RECORDED WITH PLAT. 3. LOT 1 AND LOT 2 ARE SUBJECT TO PARK FEES AS FOLLOWS: LOT 1 - 358 x 5014 = $179.000; TOTAL AMOUNT TO BE PA I D W I TH F I RST BUILDING PERMIT. LOT 2 - 270,072 X .023 = $6,212; TO BE PAID WITH BUILDING PERMIT OR REPLATTING AT THE PREVAILING RATE. 4. DESIGNATE EXISTING 33' EASEMENT ON SOUTH AS DEDICATED RIGHT-OF-WAY ON PLAT. (SUBJECT TO CONCURRENCE OF PROPERTY OWNER) . 5. DEVELOPMENT WATERLINE SHOULD PROVIDE FOR 2 STUBS ON THE NORTHERN SECTION WITH TEES AND VALVES; TO BE COORDINATED WITH CITY ENGINEER. 6. DEVELOPER SUBJECT TO POSSIBLE FUTURE TRAFFIC SIGNAL ASSESSMENTS FOR 83kD AVENUE AND UNIVERSITY AVENUE AND AT 85TH AVENUE AND ACCESS ROAD. 1G (STH PARK ESTATES ZOA #86-05 P.S. #86-05 AR H I TECTUPAL REF I(&ENTS 1. PROVIDE DECK ELEMENT DETAILS - ALL DECK FASCIA TO BE PRE-FINISHED METAL TRIM; DECK POST SUPPORTS TO BE PRE-FINISHED METAL. 2. ARCHITECTURAL FACADE BEHIND DECK TO BE BRICK UP TO HORIZONTAL METAL BAND. 3. COLOR SCHEME - SAMPLES OF ALL ARCHITECTURAL FACADE MATERIAL TO BE SUBMITTED FOR CITY APPROVAL. 4. PROVIDE BRICK SCLDIER COURSE FOR WINDOW SILLS ON FIRST TWO FLOORS FOR WINUUW OPENINGS. THIRD FLOOR WINDOW SILLS TO BE DETERMINED; WITH STAFF APPROVAL. 5. AL-L TRASH ENCLOSURES TO BE BRICK ENCLOSURES; ONE PER BUILDING TO BE PROVIDED. 6. ELEVATIONS WHICH INCLUDE DETAILED FACADE MATERIAL DESCRIPTIONS TO BE SUBMITTED BY NOVEMBER 10, 1986. 7. DEVELOPER WILL ENSURE ADEQUATE ON-SITE PARKING THROUGH MANAGEMENT OR PROVISION OF ADDITIONAL PARKING AREA. DEVELOPER TO SIGN PARKING LOT AND ENFORCE TO ACCOMPLISH PARKING IN DESIGNATED AREAS ONLY. 8. PROVIDE A SITE IMPROVEMENT PERFORMANCE BONG; AMOUNT TO BE THREE PERCENT OF CONSTRUCTION VALUE (SEE BOND FORM) . 9. DEVELOPER TO IMPLEMENT AMENITY PACKAGE AS DEFINED IN CLIFF' S/FkIDLEY CONTRAST. REMOVE AMBIGUITY PRIOR TO COUNCIL MEETING. 10. SOUNDPROOFING TO BE INSTALLED ADJACENT TO LAUNDRY ROCMS AND STAIRS. 11. REZONING IS FOR THE NORTH PARK ESTATES PROJECT ONLY AS .DEPICTED ON APPROVED SITE PLANS AND ELEVATIONS INCLUDING SPECIFIED MATERIALS. lEl E N R1H PARK ESTATES ZOA #86-05 P.S. X6-05 GDf RAL LAiDSCAPI Pfi REIIUIS 1. PROVIDE BERMING TO SCREEN PARKING ALONG 83RD AVENUE N.E. 2. PROVIDE 3 ADDITIONAL STREET TREES AND SHRUBBERY ALONG 83RD AVENUE N.E. 3. PROVIDE ADDITIONAL SCREENING ALONG THE EASTERLY 28 FEET: THROUGH THE ADDITIUN OF SIX OVERSTORY SHADE TREES. 4. PkOVIDE A COORDINATED BERMING AND LANDSCAPE PLAN FOR THE ENTIRE SITE. 5. ALL SHRUB BEDS TO BE EDGED AND MULCHED WITH A WEED BARRIER PROVIDED. 6. ROCK MULCH TO BE INSTALLED AS INDICATED ON LANDSCAPE PLAN DATED 10/14/86, EXCEPT ADDITIONAL ROCK IN PARKING, SEE #12. 7. ALL TURF AREAS TO BE SODDED EXCEPT AREA WEST OF NATURE CENTER SECURITY FENCE, AND 10 FEET BEYOND TRAIL TO NORTH TO BE SEEDED. 8. PROVIDE Mi IMPROVED INTERNAL HARDSURFACE PATHWAY SYSTEM WHICH CONNECTS THE UEVELOPMENT FRCM EAST TO WEST AND NORTH TO SOUTH; TO BE CONSTRUCTED WITHIN ONE YEAR OF 70% OCCUPANCY. 9. ALL DEVELOPMENT LANDSCAPING TO HAVE UNDERGROUND LAWN SPRINKLING. 10. BUILDING END ENTRY PLANTING BEDS TO BE BERMED, 11 . IMPLEMENT PERIPHERAL WALKWAY SYSTEM AS SHOWN ON SITE PLAN. 12. SOD PAWING INDENT AREAS OR USE ROCK MULCH. lI NCRTH PARK ESTA I ES ZOA #86-05 P.S. #86-05 PUD REF I NMWS 1. ADD ADDITIONAL DECORATIVE LIGHTING AROUND PONDS; MINIMUM OF THREE LIGHTS FOR EACH POND. 2. FINAL DESIGN FOR POND/DRAINAGE ELEMENTS WILL PROVIDE FOR RETENTION OR DETENTION AREAS WHICH WILL FUNCTION EFFICIENTLY AND CONTRIBUTE TO A VISUALLY PLEASING AND LOW MAINTENANCE DRAINAGE SYSTEM. 3. DEVELOPER TO ASSUME RESPONSIBILITY OF ANY RELOCATION AND CONSTRUCTION OF EXISTING NATURE CENTER BOARDWALK NECESSITATED BY NATURE CENTER POND CONSTRUCTION. 2 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION REQUESTING A PUBLIC HEARING RELATING TO REDEVELOPMENT PROJECT NO. 1 AND THE AMENDMENT OF THE MODIFIED REDEVELOPMENT PLAN RELATING THERETO AND THE AMENDMENT OF THE TAX INCREMENT FINANCING PLANS RELATING TO TAX INCREMENT FINANCING DISTRICTS NO. 2 THROUGH NO. 8 WITHIN THE PROJECT AREA. BE IT RESOLVED by the Board of Commissioners (the "Com- missioners" ) 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, with respect to the Authority' s Redevelopment Project No. 1, (a) the Authority amend the Modified Redevelopment Plan relating thereto and established pursuant to and in accordance with Minnesota Statutes, Sections 462 . 411 to 462.716, inclusive, as amended, and (b) the Authority amend the Tax Increment Financing Plans relating to Tax Increment Financing Districts No. 2 through No. 8 to reflect the revised project costs of the Modified Redevelopment Plan of Redevelopment Project No. 1, pursuant to and in accordance with Minnesota Statutes, Sections 273.71 to 273.78, inclusive, as amended (collectively, the "Proposed Amendments" ) . 1.02 . This Authority has caused to be prepared the Proposed Amendments, including the additional public im- provement costs proposed to be incurred within Redevelopment Project No. 1. Section 2. Request for Planning Commission Review. The Authority hereby requests the written opinion of the - City' s he -City' s Planning Commission on the Proposed Amendments. 2A Section 3. Request for City Council Public Hearing. The Authority hereby requests that *the Fridley City Council hold a public hearing pursuant to Minnesota Statutes, Section 273.74, Subdivision 3, on the Proposed Amendments. Section 4. Notification of Planning Commission andCity Council. The officers of the Authority are hereby directed to notify the Fridley Planning Commission and the Fridley City Council of the requests made of said public bodies in Sec- tions 2 and 3 of this Resolution, respectively. Adopted by the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, this 13th day of November , 1986. f 2 - HOUSING and REDEVELOPMENT AUTHORI Y 140thCOMMISSION MEMBERS: LAWERENCE COMM ERS,CHAIRMAN JOHN MEYER DUANE PRAIRE WALTER RASMUSSEN VIRGINIA SCHNABEL CITY O FF FRIDLEY TO: CHAIRMAN OOMMEW AND HRA COMMISSION MEMBERS FROM: JOCK ROBERTSON, HRA E)4 )TIVE DIRECTOR SUBJECT: LOU LUNDGREN'S LET= OF CREDIT DATE: NOVMER 7, 1986 At the last HRA meeting, Lou Lundgren, in anticipation of securing the necessary financing for his project, requested that the HRA not draw on his $200,000 letter of credit for 30 days. The HRA approved Mr. Lundgren's request with the understanding that a determination to draw on the letter of credit would be made at the November 13, 1986 HRA meeting should Mr. Lundgren not provide the appropriate financing required to complete the project. Since the beginning of negotiations with Mr. Lundgren, the HRA and City staff have worked hard to see this development through to completion. There has been a great deal of staff and Camdssion time given to the project. Everyone was hopeful that the development designed by Mr. Lundgren would became a reality and this support was evident in the HRA's consistent actions to grant Mr. Lundgren additional time to fulfill contract obligations. However, at this point in time, Mr. Lundgren has been unable to raise the equity required to ensure financing for the project. In consideration of the 30-day time frame granted to Mr. Lundgren at the last HRA meeting, it is the staff's recommendation that the HRA initiate action to draw on the $200,000 letter of credit. JLR/SVO/mb EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 571-3450 FRIDLEY, MN EXT. 117 3A ty, in such detail and at such times as may the , asth reasonably be requested Developer actual progress ofloper Authority r respect too cone r struction of the Minimum Improvements. The Developer also agrees that it shall allow designated represen- -tatives of the Authority to enter upon the Development Property during the construction of the Minimum Improve- ments to inspect such construction. Section 4 .4. Certificate of Completion. Promptly after completion of the Minimum Improvements in accordance with the provisions of this Agreement, the Authority will furnish the Developer with a Certificate of Completion, in substan- tially the form set forth in Exhibit C attached hereto. If upon request by the Developer the Authority shall refuse to furnish a Certificate of Completion, the Authority shall furnish the reasons for such refusal . Such Certificate of Completion shall be a conclusivedetermination covenantsainsthis fac- tion and termination of the ageements Agreement and in the Development Property Deed with respect to the obligations of the Developnimum er , , and it tssuccessors and assigns, to construct Section 4 . 5 . Letter of Credit . The Individual Devel- oper shall furnish, or cause to be furnished, to the Authority on or before July 1 , 1986, an irrevocable letter of credit (the "Letter of Credit" ) acceptable in form and substance to the Authority and which specifically references this Agreement , from a financial institution acceptable to the Authority in the amount of $200 ,000 , effective until the date on which the Authority wh whicheues ver shall occur earlof Cer , pletion or February 1 , 1988, which provides that if the Minimum Improvements have not been substantially completed by February 1, 1988 , such that a Certificate if f thereetion occursan cannot Eventeofissued Default ywhich Authority, O draw the remains uncured for 60 days, then the Authority may on the entire amount of the Letter of Credit automatically up presentment of notice by the Authority to the issuer of the Letter of Credit, which funds the Authority shall forever retain as partial liquidated damages or reimburse re or to expenses; provided that a Letter of Credit expiring p February 1 , 1988, shall be acceptable to the Authority if such Letter of Credit provides that the Authority th rityfu y draw thereon in the event that the Developer replacement Letter of Credit in form and substance acceptable to the Authority at least thirty ( 30) days prior to the expiration of the Letter of Credit then in effect . No draw on the Letter of Credit shall , in and of itself , constitute a termination of this Agreement or absolve the Developer of any of its obligations hereunder . 4 - 3 �. 3B FRIDLEY PLAZA ASSOCIATES A LIMITED PARTNERSHIP November 7, 1986 Mr. Larry Commers, Chairman and Commissioners Fridley Housing and Redevelopment Authority 6421 University Avenue Northeast Fridley, Minnesota 55432 Re: Fridley Plaza Apartments Project Fridley, Minnesota Dear Commissioners: As you know, the Contract for Private Development, by and between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, and Fridley Plaza Associates Limited Partnership, for development of the Fridley Plaza Apartments Project, has been terminated by the Housing and Redevelopment Authority. The Authority, however, continues to hold a Letter of Credit in the sum of $200,000 , upon which it can draw at any time. On October 9 , 1986, the Housing Authority refrained from directing the staff to draw on the Letter of Credit and stated it would reconsider its decision at the November 13 , 1986 , meeting of the Authority. The purpose of this letter is to ask that the Authority 'not -direct staff to draw on the Letter of Credit at this time. If the Letter of Credit is draw upon now, ofthe $200,000 , thus putting anrequired morerseverese the bank in the amount financial drain on the project. As we have told you, the project cannot be developed with the financial structure originally proposed. We do not believe any developer can develop the project as originally proposed, given the impact of the Tax Reform Act of 1986. The Tax Reform Act has made it impossible to develop a luxury project using tax-exempt financing. It has also made it extraordinarily difficult to obtain equity, because the tax benefits previously available to investors no longer exist. We are continuing to explore alternative methods of financing for the project. It will take time for the financial community to respond to the Tax Reform Act with alternative financing vehicles. Unless the Authority has another developer who is willing to proceed with the project, we do not believe the Authority is harmed by continuing to hold the Letter of Credit. The Authority can, at any time, direct staff draw withoother potential developers.can continue to look for and negotiate 1140 minneeole building. sl. peul, minnesole 55701 612•224-4765 3C 1 1 710\ 4 FRIDLEY PLAZA ASSOCIATES A LIMITED PARTNERSHIP Mr. Larry -Commers November 7 , 1986 Page Two Accordingly, we would appreciate your continued indulgence in allowing us to attempt to put a financing package together to present to the staff and to the Authority. Thank you for your consideration. Sincerely, FRIDLEY PLAZA ASSOCIATES LIMITED PARTNERSHIP 7 By: / Louis R. Lundgren Its: General Partner SOR:BC2S i 14o minnesots building, at. psui, minnesots 55101 612-224-4765 DIRECTORATE o0 " :° OF qk 0d o PUBLIC WORKS CITYOF MEMORANDUM FRI DLEY TO: Jock L. lmbertson, Executive Director EW86-324 Housing Redevelopment Authority FROM: John G. Flora, Public Works Director DATE: November 5, 1986 SUBJECT: Highway 65 Turnback Property Due to the final alignment of Lake Pointe Drive and Highway 65, the preliminary plans for Pad A of the Lake Pointe development had to be revised because of a slight encroachment into the pad area. Woodbridge Properties, Inc. has suggested that the City vacate that portion of the Highway 65 turn back area as a means of providing additional space for landscaping and realignment of their Pad A structure. I have prepared a public hearinq notice for the vacation of the excess right-of-way and - scheduled it for Council action at their November 3 meeting. At the meeting, the item was withdrawn due to the information received that Mr. Gerald Johnson is appealinq the area question associated with the condemnation of his property. If the HRA desires to proceed with a vacation of this Highway 65 turnback property, recommend they indicate their desires and initiate the process of ter the Johnson oondemnation issue is resolved. JGF/ts - 11AtCTORATs o°O.o f Of ora .•o pUSLIC WORKS CITYOF OnaMORANDUM F Iff) IDt, Nasi. 4��. CLtY manager A�186 326 PWK: John G. Flora. Public Works Director U%7E: November 71 1986 SW=: Woodbridge Development O,nstruction on the Woodbridge Lake Pointe Development commWed on "ondaY" August 251 1986 by Enebak Construction who was awarded the Demolition and Grading contract. Within the contractr three intermediate suspense dates were established for the project's oompletion of July 3, 1987 (October 3, grading of the Lake Pointe Drive right-of-way= November 71 completion of Building Add-C and the remainiM richt-of-Iftys and November 21► grading of the detention ponds along Lake Pointe Drive. During the month of Septemberr we experienced considerable wet weather but Enebak Construction was able to substantially complete the Lake Pointe Drive right of-ray grading by October 10. In order to expedite other work, the November 7 suspense date was extended to November 12. (See November 6, 1986 letter toe Johnson PrMark Burch),, ty -- By this date, Pad C and all of the richt-of-my m should be completed. In addition, Adds B. E, F and G plus the restaurant and hotel are completed. Still remaining to be completed are Plods A and D. A major problems exists { with delinmating Pad A. Woodbridge is of the opWon that the Lake pointe Drive access to Highway 65 inf ripges on his original building-proposal and until they can resolve the acquisition of the single residential riot-of-we�y homes sen West Moore Lake Drive and the turnback of the Highway 65 are unable to provide the contractor with the erect grading requirements. (See November 6, 1986 letter to Jock Robertson from Eric Nesset). addition, we have just beeninformed that there is a possible problem with Pad A the compaction specifications for the type of soil lova idge before vicinity. This itsm will also have to be Bedded upon by woodbr the contractor cmn proceed to nark in this area. While the majority of the earth work is being completed ahead of our anticipated schedule, until the Pad A problem is resolved, we will continue to have a problem sare required in PadD, and the soils in this area M =#he remaining fill areas. Park Construction started the smdtUY serer and water work ou October Lake 1986. 9hey bare installed aMproximately 700 feet of sanitary se.+ r a e to Pointe Drive on the south- �o temooeeily Stopped encountering vet soil '0619Uti on the installation of water lines on Bridgewater Drive an the north. 1his is desired in that we hope to get the entire water strvioe in prior to freezeup this year. yg r Page 2 - W86-323 Crossings, Inc. , our storm water contractorr commenced work on November 6, 1986. It is hoped that r� eart ge system will be completed yet order to provide drainageforthe spring snow melt Even though we have encountered difficulties and disagreements at the construction siter work has progressed extremely well for this Period to of the year and if the weather continues to hold, it may be po ce the curb and gutter within the street riot of-wsY. JGF/ts r it )nN3At 1tY1N3� 4C G! 011 AtMNlIH MNIIYI 31t1$AP `\ � ,.i= �f•� � ``` It \\ ` IIII 133b1f•NOGll:)tr I ;it p 1 2 l I 1 ` ^ • oil t �: 1 it/ .1 , • ..' •\ I•,1,;1 `I 133b15 A3NInO• J`\ *` `Y: IN ♦ i• �1 ljlfill ;� I•• 4t rl )nn3n, �II I (Y rt ; SII W MCSIO�n OJT I ,11 ti P" I IIS ' 1rt I r I IIII II1�' 0. /�i Ili 1 I 1 Iil I� , II 11 /'u 1 • ; I II D \� IIg4�I - itl t- 133Y1f �... ,,,,.• -�a --- - ---� •+�II 1 L! � 4D C�IYD�Y FR! CIVIC CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY.MINNESOTA 55432 • PHONE(612)571-3450 November 6, 1986 PW86-198 Tip Enebak Enebak omstruction P.O. Bax 458 Northfield, M 55057 Dear Tip: At our wkly progress meting on November 5, 1986, we discussed schedule changes which would facilitate the water, sanitary sewer and storm sewer improvments on the north side of the Woodbridge site. We agreed that we would relax the deadline for ca pletu g Pad C until Wednesday, November 12, if E nebaak would ecuPlete the grading of Pond D and the north boulevard area. Ed indicated that these changes were acceptable and he would try to grade the north side of the site as soon as possible. Thank you for your cooperation with this project. We appreciate the efforts that you have made to keep this work progressing.. Sincerely yours, Mark L. Burch Assistant Director of Public Works MLBjts 4E November 6, 1986 Mr. Jock Robertson ` City of Fridley 6431 University Avenue NE Fridley, MN 55432 RE: Lake Pointe Corporate Center Dear Jock: As you are aware, the earthwork operation at the Lake Pointe site is presently at a stage where the contractor is requesting a revised location for the Building A and hotel building pads so that they can begin working the northeastern area of the Lake Pointe site. This situation has developed primarily because the City's proposed changes in the intersection location would necessitate changing the location of the project buildings from those locations shown on the previously approved site plan. Because of this request and various other problems which have arisen in connection with the Lake Pointe project, I think it is appropriate at this time to summarize the discussions which I have had with you and other City staff as well as discussions which have been held between Woodbridge and Nasim Qureshi and Dave Newman concerning the project. j The City of Fridley, together with its consultants, Short Elliot Hendrickson ("SEH") , has developed an intersection design which reduces the developable area of the Lake Pointe site. When we met October 16, 1986 with Nasim Qureshi and Dave Newman, Dave Weir explained that the reduction of the developable land in the Lake Pointe site by several thousand square feet as a result of the proposed intersection design would have a serious impact on the ability of Woodbridge to maintain the quality of development which is contemplated by the site plan. At that meeting, Dave Weir also requested that the City consider purchasing Mrs. Gunderson's house, the second house west of Highway 65, so that the intersection could be reconfigured to move Lake Pointe Drive west to the location shown on the approved site plan. I understand that the primary motivation on the part of the City in designing the intersection in such a way as to impact on the 4%oodbridge Properties. Inc. • 320 Woodbridge Plaza 10201 Wayzata Boule%ard • Minnetonka, Minnesota 55343 (612) 541-1000 4F November 6, 1986 Page Two Lake Pointe project is the desire on the part of the City to use or preserve the ability to use State Aid funding for the construction of Lake Pointe Corporate Center roads. When Woodbridge presented its site plan for review and approval by the City, the site plan 'clearly indicated the location of the intersection of Lake Pointe Drive and Moore Lake Drive. At no time during the review and approval process by the City did the City state that the design as shown on the site plan would not be feasible. Essentially, the City has, in order to obtain outside financing for the construction of the intersection improvements, proceeded with having its consultants finalize an intersection design which adversely impacts the Lake Pointe site plan. Perhaps the most disturbing aspect of this situation is that the new intersection design was formulated even though another option was available to alleviate the impact on Woodbridge's site plan. As you know, at a meeting that you and I attended with SEH representatives, a sketch was presented by SEH which indicated that if Mrs. Gunderson's house were acquired by the City, the roadway could be reconfigured in such a manner as to both improve the design of the intersection and eliminate the need to reduce the developable area of the Lake Pointe site. As we have informed you, Woodbridge has in the past attempted to negotiate a purchase agreement with Mrs. Gunderson but has had no success as of this date. However, it is clearly within the power of the City to acquire this property if it decides to do so. Instead, by its redesign of the intersection, the City has apparently opted to sacrifice the quality of the Lake Pointe project. Another situation which has contributed to a delay in our ability to finalize our design drawings and to plat the project property is the continuing question of whether Woodbridge will have made available to it the turnback parcel in the northeast corner of the site. It was not until Wednesday, October 29, 1986, that Woodbridge received an indication from the City of the possible ultimate configuration of this parcel. Even this information, } while helpful has not yet been approved by the Minnesota Department of Transportation. Also, we understand that until the City Council goes through various formalities and approves the conveyance of the turnback parcel to Woodbridge, Woodbridge cannot be assured that the turnback will be made available to it by the City. Although we are comforted by the assurance that City staff will support the conveyance of the turnback parcel to Woodbridge, we are concerned about the ramifications and recourse available to Woodbridge if the City Council does not approve the conveyance of the turnback parcel as proposed. In light of these existing problems and conditions, Woodbridge sees no other option but to halt work on the building plans because of the possible impacts of the intersection design and the Woodbridge Properties, Inc. • 320 Woodbridge Plaza • 10201 Wayzata Boulevard • Minnetonka, Minnesota 55343 (612) 541-1000 4r November 6, 1986 Page Three turnback configuration on the site plan. We are also aware that the City is taking steps to arrange for the recording of the plat for Lake Pointe site which shows the intersection as presently proposed by the City. We are not at this time willing to permit the recording of a plat which reduces the developable area of the Lake Pointe site from the area agreed upon in the Development Agreement between Woodbridge and the City. I believe that Woodbridge has been open with the City throughout the planning process in explaining the negative impacts which the intersection design and the turnback configuration has and will have on the Lake Pointe development. We have attempted to present options to the City in order to arrive at a solution to these problems. The City has proceeded to formulate an intersection design which has a substantial negative impact on the Lake Pointe development even though we have explained on several occasions that we are not willing to agree to these several changes. We see no other option at this time but to reconfigure the intersection so that the building plans may be constructed as presently shown on the construction documents for the project improvements. We believe that it would be appropriate for the City to acquire the additional parcel of property necessary to reconfigure the intersection and leave the developable area of the Lake Pointe site as previously agreed. Also, we believe that Woodbridge should not be required to participate in any additional costs as a result of a change order request from the earthwork contractor because he is unable to proceed with his work as planned. These costs are directly attributable to the failure on the part .of the City to take the necessary actions to deliver the site to Woodbridge as agreed in the Development Agreement. I trust that we can work out a mutually acceptable solution to these problems. We are willing to meet with you any time to discuss possible solutions which will enable the Lake Pointe project to proceed as planned. Sincerely, Eric W. Nesset Director of Construction EWN:lmb cc: Nasim Qureshi Dave Newman Woodbridge Properties. Inc. • 320 Woodbridge Plaza • 10201 Wayzata Boulevard Minnetonka, Minnesota 55343 (612) 541-1000 DIRECTORATE °O OF °c o PUBLIC WORKS CITYOF MEMORANDUM ! FRIDLEY TD: Jock Robertson, Executive Director - PW86-323 Housing Redevelopment Authority FROM: John G. Flora,fPublic Works Director DATE: November 4, 1986 SUBJECT: Change Order to the Woodridge Development Street Improvement Project No. St. 1986- 1 & 2, Phase II As the preparation of the street right-of-Tway within the Woodbridge Lake Pointe Development has progressed, it became apparent that there were subsurface drainage problems that had not been previously known. Sunde Engineering, our consultant, has determined that a perforated subsurface arainage pipe system should be installed in order to provide for the proper stabl ization for Lake Pointe Drive. Change Order #1 for 1,500 lineal feet at a cost of $17,250.00 has been prepared to the Street Improvement Project St. 1986 - 1 & 2, Phase II. This information has been discussed with representatives from Woodbridge Properties, Inc. and official notice provided by my letter on October 31, copy attached. It is staff's understanding that this Change Order is essential to continue the progression of the priority road construction. it is further understood.that additional work is to be equally funded by the HRA and Woodbridge Properties, if the total expenditures identified in Schedule C are exceeded and as established in the Amendment Agreement. The City Council approved Change Order No. 1 to St.. 1986 - 1 & 2, Phase II at their November 3 Council meeting. Recoamena the HFA be advised of this action and also approve this Change Order. JGF/t.s CITYOF FRIDL.EY CIVIC CENTF-R • 6331 UNIVERSITY AVE. N.E. FRIDLEY.MINNESOTA 55432 • PHONE(612)571-345() Octot>er 31, 1986 iZrfi6-191 PSr. Eric Ne:;set Woodbridge Properties, Inc. 320 Woodbridge Plaza 10201 Wayzata Blvd. Minnetonka, K4 55343 SUBJECT: Lake Pointe DevelopnenL - Change Order #1 Dear Mr. Nesset: As discussed at our October 20 meeting regarding the Change Order to the ,toren sewer system within the Lake Pointe Dev:elopme,it, based upon the grour►d water status with ,.:he construction of Lake Pointe Drive, we have Lx-en advised by our oonsultant, Sunde Engineering, cf a need to provide 1 rforatec drain pipes ir; a portion of the roadway at ari estimated cost of Yi7,250.00. As a result of that meeting, Woodbridge was to praride a letter to the City concurring with this change to the plans. Actached is a copy of the Sunde letter and the Change Order for the perforated pipe. In ordei to expedite the continuation of work on the roadway system, we will present this change to the Council at their_ I`Nezrber 3, 1986 meeting in accordance with the procedures esLatdished in tl.e Agreerent A.tiendrent with the HRA. Sincerely yours, s - 61L G. Flora ' Director of Public Works JGF/ts Enclosures 5E SUNDE ENGINEERING, INC. GERALD M. SUNDE, Consulting Engineer 9001 Em @WmW Don Fury. • SW0w# VJan.MN 16M • (012)611-33" October 14, 1986 Mr. Mark Burch City of Fridley 6431 University Avenue Northeast Fridley, Minnesota 55432 Dear Mr. Burch: Re: 258-85 Lakepointe Corporate Center Fridley, Minnesota We have revised the storm sewer drawings for the project to show the installation of perforated pipe drains in a part of the roadway. The drains will be required due to probable high water able conditions in the southeast part of Lakepointe Drive. We recommend that a change order adding the perforated pipe to the storm sewer and street project be approved. Yours very�trrullyy,, / Gerald M. Sunde GMS:skw 5C RMLIC WOWS tEH UENT Engineering Division QTY OF FRIMEY Fridley, Minnesota October 20, 1986 H i S Asphal t, Inc. 700 Industry Blvd. Anoka, M 55303 Subject: Change Order il, Street Improvement Project ST. 1986 - 1 i 2 (Phase II) Gentlemen: You are hereby ordered, authorized and instructed to modify your contract for Street Improvement Project ST. 1986 - 1 i 2 (Phase II) , by adding the following: 699NEW ITEM APPRO, QUAATI�'Y UNIT PRICE AKX)W 8' PVC Perf. Pipe 1,500 L. F. 11.50 per L.F. S 17,250.00 ORIGINAL CDNTRACT PRICE . . . . . . . . $368,054.10 7D7AL GLMGE ORDER #1 . . . . . . . . . S 17.250.00 REVISED CWMCT AM UNr $385,304.10 Submitted and approved by John G. Flora, Public Works Director on the 20th day of October, 1986. Pr epi red by - Checked by ohn G. Flora, P.E. Puaic Works Director M Charles E. Weichselbsum District State Aid Engineer i 5D H i S Asphal t, Inc. page 2 Change Order fl Street improvement Project ST. 1986 - 1 i 2 (Phase II) . 5�h day of n�i. 1986 by d i S Asphalt, Inc. Approved and accepted this H i S ASPHALT, INC. l { William B. Miller, President Approved and accepted this _ day of _, 1986 by the City Council of Fridley, Minnesota. WILLIAM J. AEE MAYOR BMIZEY A. MURL.A - CITY CLERK 3/6/4/13 6 QTY OF FRIILEY MEMORANDUM TO: JOCK ROBmTSC N, C 101MKUNITY DEVELOPMENT DIREMR FROM: RICK PRIBYL, FINANCE DIREC7OR SUBJECT: THREE YEAR TAX INCREMENT DISTRICT QUALIFIC RTIM DATE: SEPTEMBER 30, 1986 I am sending you a copy of the letter that I received fram the Anoka County Auditor's Office regarding the qualification of our Tax Increment Properties. As you can see, there are three different districts that must be justified as far as improvements to the plat and parcels. It appears as though we do have some lead time on these so it is important that we are able to make a determination of improvements to each particular piece of property and respond to the Auditor's Office. RIP:sh cc: Mr. Nasim M. Qureshi, City Manager Mr. John Flora, Public Works Director Mrs. Samantha Ordumo, Management Analyst 3/0/3/9 6A �40 COUNTY OF ANOKA Office of CountyAuditor COURTHOUSE ANOKA, MINNESOTA 55303 612.421.4760 September 26, 1986 CHARLES R. LEFEBVRE County Auditor Ext 1134 Mr. Rick Pribyl , Increment District Treasurer CITY OF FRIDLEY 6431 University Avenue N.E. Fridley, MN. 55432 re: 3-year Tax Increment District Qualification Dear Mr. Pribyl : Pursuant to the provisions of M.S. 273.75, Subdivision 1, Minnesota Tax Increment Financing Act, each Tax Increment District must meet certain requirements within a three-year period from the date of its original certification in order to qualify for the continued payment of tax increment for that district. Following is an excerpt from the above-referenced statute: " . . . ;provided, further, that no tax increment shall be paid. to an authority for a tax increment financing district after three years from the date of certification of the original assessed value of the taxable real property in the district by the county auditor . . . unless within the three year period (a) bonds have been issued pursuant to section 273. 77 , or in aid of a project pursuant to any other law ex- cept revenue bonds issued pursuant to chapter 474, prior to August 1 , 1979, or, (b) the authority has acquired property within the district, or, (c) the authority has constructed or caused to be constructed public improvements within the district; . . . " Your city currently has an increment district or increment districts which must meet the above-mentioned three-year qualification requirement. These are outlined on the following page. Affirmative Action / Equal Opportunity Employer 6B 3-year Tax Increment District Qualification DISTRICTS) DUE DATE B9 01/20/87 Cl 01/20/87 C6 03/15/87 Please supply to this office the qualifying information for the district or districts referenced above by the applicable due date(s) . Please do not hesitate to contact this office with any questions you may have or for any assistance you may require in this matter. Very truly yours , Charles R. Lefebvre Anoka County Auditor William Tilden Property Tax Supervisor CRL/WT/j o 6C '0"'FM CRYOF Nwember 7, :1986 FM DLEY CIVIC CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY. MINNESOTA 55.132 • PHONE(612)571-3451 Mr. William Tilden Property Tax Supervisor Anoka County Auditor's Office 325 Main Street Anoka, MtV 55433 Dear Bill; As per your September 23, 1986 request for verification of the 3-year Tax Increment District Qualification for Districts B9, Cl and C6, the City of Fridley submits the following information to substantiate that the 3-year qualification requirement has been met. DISTRICT B9 and C1/7AX IN(32Ehg.TT!' DISZRICT NO. 4 According to Minnesota Statutes 273.75, Subdivision 1, Section (c) , increment will continue to be made within a district if, within three years f rom certification, the authority has constructed or caused to be constructed public improvements within the district. Zhe following public improvements have been completed to District B9 and C1 (TID 44 Johnson Printinq/Skywood Mall) since the district was certified in January, 1984: 1. Street overlay and concrete curb improvements on 77th Ave. 2. Intersection and drainage improvements at 77th & Main and 77th and the railroad tracks. 3. Drainage and spillway improvement to PIN 10-11-0024. 4. Island curbing, landscaping and brickwork improvements to PINS 25-22-0001 and 25-22-0003. These public improvements have had a direct impact on the parcels within this district, and serve to satisfy the requirement of Minnesota Statute 272.75, Subdivision 1. DISTRICT 06/jAX INMEMM DISTRICT NO. 5 Section (b) of the above mentioned statute states that increment will continue to be paid within a tax increment district if, within three years from certification, property has been acquired within the district. On March 30, 1986, the Fridley Housing and Redevelopment Authority purchased Lot 1, Block 2 Inco Industrial Park, the property defined as District C6, thereby satisfying the statutory verification requirement. If you have any questions regarding the above mentioned information, or require any additional documentation, please do not hesitate to call 571-3450, Ext. 160. Sincerely, Jock Robertson Director of O mnunity Development HOUSING and REDEVELOPMENT AUTHORIf Y COMMISSION MEMBERS: LAWERENCE COMMERS,CHAIRMAN JOHN MEYER DUANE PRAIRE WALTER RASMUSSEN VIRGINIA SCHNABEL CITY OF FRIDLEY TO: CHAIRMAN COMERS AND HRA COMMISSION MEMBERS FROM: JOCK ROBE MON, HRA FXEC[TTIVE DIRECTOR SUBJECT: PROJECT TIMETABLE FOR BOND IMPROVEME r INVESTMENM DATE: NWMER 7, 1986 At the September 23, 1986 joint meeting of the HRA and City Council, members of the HRA were presented with information regarding the 3 year expenditure deadline on the $3,400,000 available from the $11,550,000 G.O. Tax Increment Bond sold in December of 1985. Since that money must be spent by December 1988, the staff presented a list of possible projects with projected costs which the HRA could fund with the bond proceeds. The list of possible projects was created from the priority listing presented at the May 8, 1986 HRA meeting. Also presented at the September 23, 1986 meeting, was a seven year increment projection based on expected increment revenues from all tax increment districts. It was estimated that approximately $ 6.8 million in increment would be accurred by the year 1993. Supported by the members of the City Council, the Commission members agreed that it was in the best interest of the City that the HRA continue to collect increment within each of the tax increment districts to fund various development projects within Redevelopoment Project No. 1. In consideration of the statutory parcel improvement requirement for each tax increment district, it was noted that improvements must be made to areas within the Moore Lake and North Area Districts very soon, utilizing first the avilable bond proceeds and then available increment. As per the HRA's request for a timetable for improvement projects which could be funded with the $3.4 million and projected increment revenues, the staff has prepared a list of possible projects with the amounts to be funded and the year by which the improvement would be completed. It is suggested that those improvements completed before the end of 1988 be funded with the proceeds of the $3.4 million and funds for any improvements begun after 1988 could be securred from the available increment. This information has been provided to better assist the members of the HRA in determining the guidelines by which they direct the expenditures of both the bond proceeds and tax increment revenues. This information has also been made available to members of the City Council. It is recommended that the HRA establish a guideline for project improvements and expenditures at the November 13, 1986 HRA meeting so that action can commence to begin and complete any such improvements before expiration of statutory deadlines. JR/SO/mb EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (612) 571-3450 FRIDLEY, MN EXT. 117 HOUSING and REDEVELOPMENT AUTHORITY COMMISSION MEMBERS: LAWERENCE COMM ERS,CHAIRMAN JOHN MEYER DUANE PRAIRIE WALTER RASMUSSEN VIRGINIA SCHNABEL CITY OF FRIDLEY TO: Housing and Redevelopment Authority FROM: Nasim M. Qureshi , Director HRA/City Manager DATE: September 19, 1986 SUBJECT: DEVELOPMENT OF POLICY FUNDING ASSISTANCE TO DIFFERENT PUBLIC IMPROVE- MENTS TO ENCOURAGE AND FACILITATE DEVELOPMENT OR REDEVELOPMENT 1 . Funds Available from the $11 ,550,000 Bonding. As you know, the HRA has sold $11 ,550,000 in bonds for improvements for projects which are underway such as the Lake Pointe development and for other miscellaneous projects for which $3.4 million is available and has to be expended in the next two years. (see attachement 01 ). At the meeting of May 8, 1986, where the City Council was also in attendance, there was discussion in regard to setting priorities for use of these funds. The general concensus was these funds were to be used as follows: Possible Projects Rough Estimates Soil Correction $ 250,000 Intersection Improvement, West Moore Lake Drive 8 Old Central 600,000 Mississippi Street Improvement 500,000 Improvement of T.H. 65 1 ,000,000 Moore Lake Water Quality 500,000 University Avenue Corridor 750,000 Senior Housing 150,000 Total $3,750,000 ■ Dkaotorof MICA . Naar Qgre&AI 0431 univer•lty AV* NJE. I$1215»-3450 . Fridley. UN $5432 tat. ISO �� 7B Housing 5 Redevelopment Authority September 19, 1986 Page 2 2. Funds from Excess Increments. .The potential revenue the HRA would receive through the increments would be in excess of $6:8 million by the year 1993, after fulfilling all the obligations of the outstanding bonds of the HRA. For proper planning, it is important the HRA develop some guidelines on how -they wish to spend this money. (see attachment #2). Availability of this increment money is contingent upon fulfilling the State statute requirements which state that within four or five years of establish- ment of the districts, the HRA has to show what improvements were done parcel by parcel to retain the increment for those parcels. If it is the desire of the HRA to keep these parcels in the increment districts to collect increment, then they have to take certain positive actions by providing improvements, either on the parcels, or other public improvements such as roads, utilities, traffic safety and other such public improvements which directly benefit the parcels to retain them in the increment districts. We have received a letter dated June 26, 1986 from Anoka County requesting we supply information to them indicating how we have complied with the requirements of the State statute. (see attachment #3) . On July 25, 1986, I responded to the County indicating that we have fulfilled the requirements of the State statute by providing site renovation by parcel numbers, street improvements, property acquisition, sewer and drainage improvements and enhancement of water quality projects and a large scale district-wide improvement to the Moore Lake drainage system. On that basis, we are contending we have fulfilled the requirements of the State statute. (see attachment #a). This information was submitted on the presumption that the HRA is going to be con- tributing to the cost for some of these activities and especially to the drainage and Moore Lake water quality. It is my assumption that, in the future, the County is going to be much more strict in requiring us to comply with the State statute requirements and in providing information which indicates what improvement was accomplished on each parcel to qualify under the requirements of the State statute. It might be important that the HRA set up some guidelines on what basis they would participate in providing public improvements which could be used to retain the parcels in the increment districts and as a guide to future planning. I have re- quested the City Council to attend your special September 23, 1986 meeting to provide valuable input to your deliberations in this area. �I f Thank you. NMQ:ch Attach. cc: City Council 7C HOUSING & REDEVEIDRM;r ALJI idly, MAY 8, 1986 PAGE 12 Mr. Lundgren stated Fuller Mortgage will have a meeting the week of May 19 and he expects a commitment from than at this time. Mr. Qureshi stated, if it is the desire to grant Mr. Il ndgren an extension to June 12, staff would work with him an what needs to be done. He stated the extension could be granted and, if certain items are not completed, this agree- trent would be null and void and there wouldn't be any other extension. Mr. O'Meara stated a development agreement would have to be worked out by June 12. He stated, tinder the present agreement, the HRA is obligated to acquire and deliver the land on or before September 1. He stated, with this delay, the HRA probably wouldn't be able to meet that deadline. Mr. Lundgren stated the HRA would not be obligated to any of the dates in the agreement and these would be worked out. MOTION BY MR. RASMUSSEN, SEMNMED BY MR. PRAIRIE, THAT THE HRA, ACTING IN GOOD FAITH, WUL NOT SIGN A DEVELOPNE1,TT AST WITH ANDn�R DEVELOPER TUR THE PROPERTY MR. IxJNDGREN IS PROPOSIlU TO DEVELDP UNTIL THE HRA MEETING ON JUNE 12, 1986, AND HOPES MR. Il)r XaUgi WILL BE ABLE M OQE BACK AT THAT TIME WITH A COMPLETED DEQ AGREEMENT. UPON A VOICE VOTE, ALL VOTING AYE, CHAS C"ERS DECLARED THE 1Vn0N CARRIED U WYDVDUSLY. At this time, 10:20 p.m. , Virginia Schnabel was excused from the meeting. 6. OUTLINE OF PROJECT FOR THE NEXT 2-1/2 YEARS: Mr. Qureshi stated the HRA sold $11 ,500,000 in bonds for improvements underway and future improvement:. :;e stated S3,400,000 is available for other projects and felt some priorities should be set . Mr. Qureshi submitted a list of different projects with ver, rough cost estimates and indicated that he prepared the outline just to get the HRA to prioritize the projects to be done in the next 2 - 2 1/2 years. Possibiv Project Rough Estimates Soil sorrection $ 250,000 81st/83rd & frontage 500,000 West Moore Lk Dr b Old Central 600,000 Mississippi Street 500,000 Trunk Highway 65 1 ,000,()()() Moore Lake water quality 500,000 Rice Creek Drive #TH 65 400,000 " University Avenue Corridor 750,000 Lest `bore Lk park improvement 150,000 Senior Housing 150,000 Junkyard Acquisition 750,000 Miscellaneous Acquisitions 150,000 Shopping Center Vacancies 100,000 Civic Center ramps 750,000 7D HOUSING & REDEVELMOU AUTHCR17y, MAY 8, 1986 PAGE 13 W. Qureshi stated the HILA sold $11,500,000 in bonds for improvements underway and future improvements. He stated $3,400,000 is available for other projects and felt some priorities should be set. There Was discussion on the list submitted and some of the projects which the HRA felt should be given first priority were as follows: soil correction, West Moore Lake Drive & Old Central intersection, Mississippi Street improve- ment, Trunk Highway 65 improvement, University Avenue Corridor and Senior Housing. Another priority mentioned was drainage fron Lake Pointe and the Moore Lake water quality. W. Commers felt the high priority' is the Center City and the HRA has a commitment to Lake Pointe so they are going to have to do what needs to be done for this project to proceed. Mr. Qureshi stated the owners of Rice Greek Plaza have requested a meeting as they feel some action should be taken to either acquire this property or else take it out of the redevelopment area. He stated a raw of parking will be lost for this center as a result of the Mississippi Street improvement and the question arises if the HRA should proceed further to negotiate and acquire the property. Mr. Qureshi stated he felt the owners of Rice Creek Plaza may be interested in selling and asked direction from the HILA if they wanted I see that only the necessary right-of-Way is acquired or the entire center. He stated thL! position of HRA and Council has been that they don't want to be property owners. Mr. Newman stated he felt the owners wished the HRA to acquire their property and stated they would get back to the City with some figures. He stated staff felt they couldn't incur any expense of appraising the property without approval of the HRA. It was the general concensus of the HRA that they would review any proposals from the owners of the Rice Greek Plaza, but it isn't their policy to acquire land. 7. OTHER: Mr. Qureshi stated a letter has been received from Brian and Rosemarie Crar.pton for the HRA to release its second mortgage against the subject property. MOTION BY MR. PRIEDITIES, SECONDED BY MR. PRAIRIE, TO DENY THE REQUEST OF BRIAN AND ROSEMARIE C RAMP'W TO RELEASE THE SECOND MORTGAGE THE HRA PRFSII'TLY HOLDS. UPCN A VOICE VOTE, ALL VOTING AYE , -CHAIRMAN OONMERS DECLARED THE MCTTION CARRIED UNANIMOUSLY. 8. CIAI S: MOTION BY MR. PRIEDITIS, SEOMM BY MR. PRAIRIE, TO APPROVE THE cHEcK REGISTER DATED MAY 8, 1986. UPON A VOICE VCS, ALL VIOMC AYE, CHAIRMAN 0MVERS DECLARED THE MOTION CARRIED -� UNAN M DUSLY. S 9 e � 11095 v�ori.Suite iso•Eden t�rarcie,MN 55344 (612)944-1000oo anta Comparfts Minneapolis Division October 16, 1986 The Housing and Redevelopment Authority in and for the City of Fridley, Minnesota c/o Fridley City Hall 6431 University Ave. N.E. Fridley, MN 55432 Attention: City Manager RE: Contract for Private Development by and between the HRA and Vantage Properties, Inc., dated March 13, 1986, (the "Contract") Gentlemen: We have completed the Minimum Improvements in respect of our Wholesale Club development in Fridley. A Certificate of Occupancy for this phase of our development was issued by the City of Fridley on September 2, 1986. Pursuant to the captioned Contract, we request that the HRA issue the appropriate Certificate of Completion for the Minimum Improvements on this parcel and pay Vantage $100,000 in reimbursement of a portion of the soil correction costs incurred in connection with this development. As required by Section 3.3(a)( ii ) of the Contract, we enclosed the estimate prepared by BRW describing the nature of the soil correction work performed on this development. Very truly yours, VANTAGE PROPERTIES, INC. By &, "Its , MNN:pc Enclosure •Commerdal Real Estate Investors and Developers- 8A PLANNING !, TRANSPORTATION ENGINEERING _ ARCHITECTURE BENNEET RINGROSE w0_ScE_D JAPvIE GARDNER INC THRESHER SOJARE 70C T11RC STREET SO- MINNEAPOLIS MN 55415 PnOti. r":;-� October.-9, 1986 Vantage Companies 11095 Viking Drive Suite 260 Eden Prairie, Minnesota 55344 Attn: Mr. David Molda RE: Fridley Soils Correction Dear David: I have reviewed the related soils correction costs for the Fridley Wholesale Club site and I have determined the following costs to be associated with the correction. Grading Contract (Park Construction) $ 959,784 Soil Borings (Twin City Testing) $ 4,125 Soils Testing for Grading Contract (Twin City Testing) $ 14,950 Soils Correction Engineering (BRW) $ 9,650 Drain Rock (Lower Water Table) $ 3,036 * Capitalized Interest (Grading Contract) $ 21,447 Total $1,012,992 *Anticipate additional $3,500 in interest expense prior to final pay application. If you need more information, feel free to give us a call . Sincerely yours, BENNETT-RINGROSE-WOLSFELD-JARVIS-GARDNER, INC. /4�lk /7, Dale N. Beckmann Senior Associate DNB/da DAJID J BENNET' DONA.D W RINGROSE RICHARD P WO�SFE_: PETE❑E JARriS _AWPENCE,: GARDNER THOMAS F CAR�G_.. CPA..,:. A-f DONA-D E HJ%- MARK G SJ NSO'. JOHN B Mc%AMAR- DONA_D_ CRAIG RICHARC D PI�GReY DA_E'. BE rMA DE'.'.c _ S _cF MINNEAPOLIS DENVER BRECKENRIDGE PHOENIX 8B ARTICLE III Soil Correction Section 3 .1 . Condition of Prooertv. The parties acknowledge that the existing soil Development Property is condition of the substandardcons::uction and is unsuitable for of the :Minimum Improvements required under this Agreement without the Company engaging in substantial grading, soil replacement, dewatering, and other soil correction work. The Company re presents that in its best opinion it will incur expenses in excess of $1 , 000 , 000 . 00 in Performing the soil correction work necessary to construct the Minimum Improvements on the Development ?roper=_v. Secticn 3 . 2 . Authoritvtars_o As_i_ . In order to encourage and induce the Company to construct the Minimum Improvements, the Authority agree Company for a s to financially assist the the coranyre r portion of the expenses it incurs in making cions described in Section 3 . 1. in an amount of S1001000 . 00 for Phase I and $50 , 000 . 00 for Phase II. Section 3 .3 . Method of Reimbursement. (a) Prior to the Authority reimbursing the Company for a portion of the expenses it has incurred in correc=ing the soils of the Development Property, events must have occurred: the following : ( i ) The Authority having issued a Certificate of Completion for the Minimum Improvements for each parcel . ( ii ) The Companv providing to the Authority a written report prepared by a qualified licensed engineer, which report shall describe in sufficient detail the nature of the soil correction work required on the Property in order to construct Minimum Improvements the and the engineer ' s estimate of the reasonable ccs- of comoletin work ( "Estimate" ) . g this work, ( b) Providing that the engineer 's estimate described. in Section 3 . 3 (a) ( ii ) exceeds $1, 000 ,000 . 00 for both parcels combined, then within 30 days of the completion of the events described in Section 3 . 3 . (a) ( i ) -( ii ) for each parcel , the Authority shall reimburse the Company for a portion of its Actual Soil Costs in the amounts provided for in Section 3 . 2_ In no event shall the Authority reimburse the Company more than $100, 000 . 00 for Parcel I and $50,000 . 00 for Parcel II. 3 - 1 r-- Sc ARTICLE IV Construction of Minimum Improvements Section 4 .1. Construction of Minimum Imiorovements . The Company .agrees .that it will construct the Minimum Improvements on the Development Prccerty in conformance with the approved Construction .Plans and the City Agreement. Section 4 . 2 . Certificate of Completion. A Certificate of Completion means the certificate (or certificates , if issued separately for the Minimum Improvements to be constructed on the Development Prooerty) , in the form attached as Exhibit B hereto, to be provided by the Author_t.; to the Ccmpan- pursuant to this s Aar-eem'=nt, uccn satisfactory completion of the Minimum Improvements . ( a) Promptly after completion of the Minimum Imo_ rovements to be constructed on Parcel I or Parcel II , as the case may be, and upon written request made by the Company, the Authority will furnish the Company with a Certificate of Completion thereof , in substantially the form set forth in Exhibit B attached hereto. That no Event of Default shall have occurred and be continuing under the terms of this Agreement shall be a condition precedent to the issuance of the Certificate (or Certificates , if issued separately for Parcels I and II ) of Completion . A Certificate of Completion shall be a conclusive determination of satisfaction and terminat':tz of the agreements and covenants in this Agreement with respect to the obligations of the Company to construct the Minimum Improvements covered by said Certificates . (b) If the Authority determines that it cannot issue the Certificate of Completion , it shall , within 30 days aster written request by the Company, provide the Company with a written statement indicating in adequate detail in what respects the Company has failed to comolete the Minimum Improvements in accordance with the prcvisions of the City Agreement or is otherwise in default under the terms of this Agreement ( including without limitation an Event of Default hereunder) , and what measures or acts it will be necessary for the Company to take or perform in order to obtain such % Certificate of Completion. 4 - 1 9 BACKGROUND MATERIAL ON WINFIELD DEVELOPMENT, INC. ENCLOSED IPJ PACKET, PRESENTATION MATERIALS TO BE e DISTRIBUTED AT MEETING, 1� Barton-Aschman Associates,Inc. 820 Davis Street P.O. Box 1381 Evanston, Illinois 60204-1381 Invoice Number 37776 312-491-1000 - October 6, 1986 Housing and Development Authority City of Fridley 6431 University Avenue, N.E. Fridley, Minnesota 55432 Attn: Mr. Jock Robertson Progress billing for professional services rendered from August 23, 1986 through September 19, 1986 in connection with University Avenue Corridor in Fridley, Minnesota. Staff Time J Mullan Pr. Associate 1.0 hrs @ 100.00 $ 100.00 B Warner Sr. Associate 15.5 hrs @ 68.00 1,054.00 D Warzala Sr. Associate 12.5 hrs @ 63.00 787.50 E Rauenhorst Associate 72.0 hrs @ 46.00 3,312.00 L Decker Associate 12.0 hrs @ 41.00 492.00 A Wong Graphic Tech. 24.0 hrs @ 22.00 528.00 K Oehrlein Support/Clerical 2.0 hrs @ 28.00 -56.00 Thtal Labor $ 6,329.50 Expenses Postage/Freight 5.07 Travel 45.40 In-House Reprographics 7.45 Outside Reprographics 41.19 Thtal Expenses 99.11 AMDW DUE 68428.61 17'c�- 05-Nov-Bb FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY PAKI 1986 HRA CONTRACTS 12 DATE DATE CONTRACT CONTRACTED ESTIMATE CHECK CITY HRA HRA AWARDED CONTRACTOR AMOUNT ESTIMATES APPROVED DATE EST # CHECK # CHECK # DATE --------------------------------------------------------------------------------------------------------------------------------- H00001 H & S ASPHALT 8-14-86 Phase 11 1986- 1 E 2 366,054.10 11-3-86 CHANGE ORDER 11 17,250.00 11-3-86 ----- ---------------------- 385,304.10 0.00 xzxzazzzamzzazazzzzzzxzzzzaz P00065 PARK CONSTRUCTION B-14-86 Sanitary Sewer Project No. 162 186,100.00 49,595.89 11-3-86 11-4-66 EST. 1 11274 t+ --------------------------- 186,100.00 49,595.69 xmxxxxzaaaaaxzaxxzxzzzaaasam E00058 ENEBAK CONSTRUCTION COMPANY 8-14-86 Demolition 6 Site Grading No. 163 978,000.00 188,311.85 9-22-86 9-25-86 EST. 1 10531 1521 10-9-66 141,634.37 10-20-86 10-21-86 EST. 2 11060 �} ---------------------------- 976,000.00 329,946.22 xxxzzxzzaxxxzxzxzzazxaxzzxxa MINNESOTA VALLEY LANDSCAPING, INC. 8-14-86 Irrigation h Lighting Project #168 481,413.00 ---------------------------- 481,413.00 0.00 zzzzzzzasxazxazzzxzxxxxxxxzs S00108 SHORT ELLIOT E HEDRICKSON, INC. Central Ave/ Highway Redesign 30,750.00 1,008.98 -------- 2-07-86 -------- ------- 1464 1,731.08 5-05-66 5-06-86 7952 1522 10-9-66 3,017.89 9-08-86 9-12-86 EST. 1 10327 1522 10-9-86 9-11-86 Modification 161,400.00 843.41 10-6-86 10-07-86 PARTIAL . 10645 1522 10-9-66 246.08 10-9-86 10-10-86 -------- ------- 1515 10-9-86 ---------------------------- 192,150.00 6,847.44 zxaseazzaaaaazmzxaaaz=zaaaa S00024 SUNDE ENGINEERING 9-11-86 Engineering/Inspection Services 148,797.00 1523 10-9-86 57,940.23 8-14-66 HRA AGREEMENT 1502 8-14-86 7,745.11 9-22-86 9-25-86 EST. 1 10532 1523 10-9-M 21,531.11 10-20-86 10-21-66 EST. 2 11059 ## ---------------------------- 148,797.00 87,216.45 aaaaaxaxaaa---Sxaaaaaxaaxaaa 500088 SUBTERRANEAN ENGINEERING 10-9-86 Landscape and Irrigation 49,000.00 Project #168 21,707.65 8-14-86 HRA A6REEMENT 1502 B-14-86 05-Nov-86 FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY PAGE 1986 HRA CONTRACTS #2 DATE DATE CONTRACT CONTRACTED ESTIMATE CHECK CITY HRA HRA AWARDED CONTRACTOR AMOUNT ESTIMATES APPROVED DATE EST # CHECK # CHECK # DATE -------------------------------------------------------------------------------------------------------------------------------- 1,000.00 10-20-86 10-21-86 INV# 4718 11058 ft 650.00 10-20-86 10-21-86 INV# 4779 11058 tf MISCELLANEOUS EXPENSES 812.50 812.50 ------ ------ ------ ------ 1508 9-12-86 6,923.60 11-3-86 11-4-86 INV# 11275 tf ---------------------------- 49,812.50 31,093.95 zzzzzzzzzzzzzzz=zzzzzzz==z=z E00062 ERNST 6 ASSOCIATES 9-11-86 Landscape Architects 9,229.00 5,377.66 8-14-86 HRA AGREEMENT ------ 1502 8-14-86 Additional expenses 127.96 2,952.96 10-20-86 10-21-86 11057 #s ---------------------------- 9,456.96 8,330.62 zzzzzzzzzzzszzzzzzzzzzzzzzzz tf - AMOUNTS TO BE REIMBURSED THIS PERIOD i