HRA 09/09/1986 SPECIAL MEETING MEMORANDUM \
O� CITY ;OF FAIDLEY
6431 tPVnv OFFICE OF THE CITY MANAGER
0 A�sR�/ AVE. Nti.
Fg10L r6�3E ts1Zt sem+-yam-, NASIM M.GURESHI
Rick Pribyl
Finance Director
TO: THE HONORABLE MAYOR, CITY COUNCIL AND HRA COMMISSION MEMBERS
FROM: NASIM M. QURESHI, CITY MANAGER n
DATE: SEPTEMBER 9, 1986
SUBJECT: SPECIAL JOINT CONFERENCE MEETING
This a reminder that there will be a Special Joint Conference meeting on
Tuesday, September 23 at 7:30 p.m. in the Council Chambers.
NMQ/l a
HOUSING and REDEVELOPMENT AUTHORITY
COMMISSION MEMBERS: "``�
LAWERENCE COMM ERS9CHAIRMAN 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 #1 ) .
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 & 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
Dir"tor o/MRA
Nam Ooreshi 6431 University Ave NF. 15121571.3450 ■
Fridley, MN 55432 Ext. 150 ��
Housing & 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
#4).
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.
Thank you.
NMQ:ch
Attach.
cc: City Council
Attach, i 1
' HOUSING & REDEVIIIJP.,= AUMORITY, 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 them at this time.
Mr. Qureshi stated, if it is the desire to grant Mr. Lundgren an extension to
June 12, staff would work with him on what needs to be done. He stated the
extension could be granted and, if certain items are not coqpleted, this agree-
ment would be null and void and there wouldn't be any other extension.
Mr. O'Meara stated a development agreement would have to beworked out by
June 12. He stated, [alder 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.
WrION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TRAT 11iE HRA, ACTING IN GOOD
FAITH, WILL NOT SIGN A DEVELDmENT Amm NIT WITH xcrHFR DEVELOPER FOR THE 12,
PROPERTY MR. URMGREN IS PROPOSING TO WV UM UNTIL ME HRA MEETING ON JU�'
1986, AND HOPES MR. UDMGREN WILL BE ABIE TO COME BACK AT THAT TIME WITH A
COMPLETED DEVELAPrENT AGREEMENT.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN C"ERS DECLARED 11iE 11MON CARRIED
U WTIMUSI X.
At this time, 10:20 p.m. , Virginia Schnabel was excused from the meeting.
6. OLTUNE OF PRQJECT TrfPROVE"Fi,,7S FOR THE NEXT 2-1/2 YEARS:
Mr. Qureshi stated the HRA sold $11 ,500,000 in bonds for improvements underway and
futurt• improvements. ::e stated S3,40(+,000 is available for other projects and felt
some priorities should be set .
Mr. Qureshi submitted a list of different projects With verb• rough cost estimates,
and indicated that he prepared the outline just to get the HRA to prioritize tl!(•
projects to be done in the next 2 - 2 1/2 years.
Possibly Project Rough Estimates
Soil sorrection $ 250,000
Slst/83rd b frontage 500,000
West Moore Lk Dr S Old Central 600,000
Mississipri Street 501),000
Trunk Highway 65 1 ,000,000
Moore Lake water quality 500,000
Rice Creek Drive ATH 65 400,000
University Avenue Corridor 750,000
best `bore Lk park improvement 150,000
Senior Housing 150,000
Junkyard Acquisition 750,Oti0
Miscellaneous Acquisitions 150,000
Shopping Center Vacancies 100,000
Civic Center ramps 750,000
r
HOUSING & REDEVELOPMENT AUTHORITY, MAY 8, 1986 PAGE 13
W. Qureshi stated the HRA 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 imprpve-
ment, TYtmk Highway 65 improvement, University Avenue. Corridor and Senior
Housing. Anther priority mentioned was drainage fron Lake Pointe and the Moore Lake
water quality.
W. Canners felt the high priority is the Center City and the HRJ1 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 Creek 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.
rIr. Qureshi stated he felt the owners of Rice Creek Plaza may be interested in
selling and asked direction frnm the MRA if they wanted ,-o sev that only tnt,
necessary right-of-Way is acquired or the entirt• center. He stati•d tht: position of HRA
and Council has been that they don't Want to be property owners.
Mr. Newnan stated he felt the owners wished the HRA to acquire their property
and stated they would get back to the City with sane 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 Creek Plaza, but it isn't their policy to acquire
land.
7. OTHER:
Tk. Qureshi stated a letter has been received from Brian and Rosa-arie Crarpton
for the HRA to release its second mortgage against the subject property.
rWION BY MR. PRIEDITIES, SECIONDED BY MR. PRAIRIE, TO DEN-f THE REQUEST OF
BRIAN AND ROSEM M C%4A7IUN TO RELEASE THE SECOM 1- RT GE THE HRA PRFSE:TLY
HOLDS.
UPON A VOICE VOTE, ALL VUTIIC AYE, CHAIR MN Oottj RS DECLARED THE I.MION CARRIED
U1Al1IlMLY.
8. CLkI S:
MM Oh BY MR. PRIEDITIS, SEC0= BY Mit.. PRAIRIE, M APPROVE THE CHECK REGISTER=,
DATED MAY 8, 1986.
UPW A VOICE VOTE, AIL VOrTING AYE, CHAIRMAN CCrvERs DECLARED THE MTIOI: CARRIED
UNANDUL'SLY.
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Attach. # 3
COUNTY OF ANOKA
l ..
Office of County Auditor
COURTHOUSE ANOKA, MINNESOTA 55303 612.421.4760
Jure 26 , 1956
CHARLES R. LEFEBVRE
County Auditor
EKt. 1134
':r. Rick Pribvl
CITY OF FRIDLEY
6 :31 University Avenue NE
Fridley, 'IN. 55432
re: 4-yr. & 5-yr. Increment District Individual Parcels Qualification
Dear Mr. Pribyl :
Pursuant to the provisions of M.S. 273. 75, Subdivision 6 , Minnesota Tax
Increment Financing Act , each parcel lying within a Tax Increment Financinq
District must meet certain requirements within a specified period of time
to remain a part of its district. The time period is either four years or
five vears from the date of original certification, depending on whether
the district was originally certified prior to July 1, 1982 , or thereafter.
Following is an excerpt from the above-referenced statute:
"If, after four* years from the date of certification of the original
assessed value of the tax increment financing district pursuant to section
273. 76 , no demolition, rehabilitation or renovation of property or other
site preparation, including improvement of a street adjacent to a parcel
(but not installation of a utility service including sewer or water
systems) , has been commenced on a parcel located within a tax increment
financing district by the authority or by the owner of the parcel in
accordance with the tax increment financing plan, no additional tax
increment may be taken from that parcel, and the original assessed value
of that parcel shall be excluded from the original assessed value of the
tax increment financing district."
* - five years if certified prior to July 1, 1982
Parentheses added in foregoing for purpose of clarity
In addition, should parcels become excluded for the above reason, if a
request is made to return them to the district, they must be returned at
their "assessed value as most recently certified by the commissioner of
revenue" .
Your city currently has an increment district or increment districts
which must meet the above-mentioned qualification requirements, as follows:
Affirmative Action / Equal Opportunity Employer
r..
i' DISTRICTS) DUE DATE
Five Year Qualification:
A5 & A9 07/31/86
Four Year Qualification:
Please submit to this office a listing of all parcels within the
districts specified above on which qualifying activities have not
commenced as of the appropriate due date (s) , or, alternatively,
confirmation that all parcels within these districts have met the
statutory requirements.
Please do not hestitate to contact this office with any questions
you may have or for any further assistance you may require in this
matter.
Very truly yours,
Charles R. Lefebvre ,
Anoka County Auditor
William Tilden
Property Tax Supervisor
CRL/WT/jo
� �r(rOt•ii t! ��s��� AiiaCn. ��
6431 University Ave. NE. Fridley. MN 55432 (612) 571.3450
1
July 25, 1986
Mr. Charles R. Lefebvre
Office of County Auditor
Anoka County Courthouse
Main Street
Anoka, MtJ
RE: Individual Parcel Qualification with Tax Increment District No. 2
(Moore Lake)
Dear Mr. Lefebvre;
Pursuant to your request for confirmation that the Qty of Fridley is in
compliance with the provisions of Minnesota Statutes 273.75, Subd. 6 which
requires verification of parcel activity within a tax increment district
no later than 5 years (for districts certified after July 1, 1983) from
the date of certification, I submit this letter as confirmation that all
of the certified parcels within Tax Increment District No. 2 (Moore Lake)
have met the statutory requirement for parcel by parcel improvement.
Since Tax Increment District No. 2 (Moore Lake) was certified on July 31,
1981, there has been significant improvements made within the District
including individual site renovations by parcel owners, street
improvements, property acquisition, sewer and drainage improvements,
enhancement in area water quality; and, a large scale, District-wide
improvement to the Moore Lake storm drainage system. The improvements made
in the Moore Lake Restoration Project and subsequent storm drainage system
improvements have made significant contributions to the site improvement
of each and every parcel within the District; and, have served to further
create a favorable environment within which future development can occur.
It is the judgement of City staff that this major improvement project is
in accordance with the Tax Increment Financing Plan for Tax Increment
Increment District No. 2 (Moore Lake) and serves to meet the parcel by
parcel improvement requirement set forth in Minnesota Statutes 273.75,
subd. 6.
If you have any questions regarding Tax Increment District No. 2 (Moore
Lake) , or require any further information, please do not hesitate to
contact either myself or Mr. Rick Pribyl.
Sincerely,
0*,:, 'k
Nasim M.. Qureshi
Director of the Fridley Housing S Redevelopment Authority
cc: William Tilden
Rick Pribyl
John Flora
Jock Robertson
Ivn-ISO