Loading...
HRA 08/14/1986 • i HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, AUGUST 14, 1986 7:00 p.M. City of Fridley AGENDA HOUSING & REDEVELOPMENT AUTHORITY MEETING THURMAN, AUGUST 14, 1986 7:00 P.M. Location: Council Chanber (upper level) CALL TO ORDER: ROLL CALL: APPROVAL OF MINUTE : Housing & Redevelopment Authority Minutes: July 10, 1986 ADOPTION OF AGENDA: RECEIVING EXECUTED COPY OF LEASE AGREEMENT WITH COLUMBIA PARK PROPERTIES FOR THE EASTERLY 89 FEET OF LOT 2, BLOCK 2, FRIILEY PLAZA CENTER 1 - 1K UPDATE ON LUNDGREN'S FRIDLEY PLAZA APARTMENT PROJECT 2 - 2A RECEIVING LETTER FROM ROBERT LEVY REGARDING THE RICE PLAZA SHOPPING CENTER 3 - 3B CONSIDERATION OF A RESOLUTION RELATING TO REDEVELOPMENT -ly PROJECT NO. 1 AND AMENDING THE MODIFIED REDEVELOPMENT PLAN, "k(1 AMENDING THE TAX INCREMENT FINANCING PLANS RELATING TO TAX INCREMENT DISTRICTS NO. 2 THROUGH NO. 6 WITHIN THE PROJECT AREA AND ESTABLISHING TAX INCREMENT DISTRICTS NO. 7 AND NO. 8 WITHIN THE PROJECT AREA AND ADOPTING THE TAX INCREMENT FINANCING PLANS RELATING THERETO 4 - 4M 4_ CDNSIDERATION OF A RESOLUTION APPRCWING AND AUTHORIZING THE a lav EXECUTION OF A CONTRACT FOR PRIVATE REDEVELOPMENT WITH WINFIELD DEVELOPMENT, INC. 5 - 5A J CONSIDERATION OF A RESOLUTION APPRCATIIC AND AUTHORIZING THE RE EXECUTION OF A CONTRACT FOR PRIVATE DEVELOPMENT WITH SHOREWOCO, INC. 6 - 6A REQUEST FOR ASSISTANCE FROM KENNETH BELGARDE AND HARRY YAFFEE TO BUILD A 358 UNIT APARTMENT COMPLEX NORTH OF 83RD AVENUE 7 - 70 STATUS REPORT ON PARKING FOR THE FRIDLEY PLAZA OFFICE BUILDING 8 - 8B HOUSING & REDEVELOPMENT AU9HORITY MEETING THURSDAY, AUGUST 14, 1986 PAGE 2 STATUS REPORT CN THE UNIVERSITY AVENUE CORRIDOR TECHNICAL ADVISORY COM I1TE ; 9 — 9D UPDATE CV THE LAKE POINTE DEVELOPMENT 10 — 10C RECEIVING STATUS REPORTS CN BIDS FOR CONSTRUCTION PHASES OF THE LAKE POINTE CORPORATE CENTER REDEVELOPMENT PRCITECT 11 — 11A CONSIDERATION OF OG THE EXECUTION OF ANAMENDED TAX INCREMENT PLFEGE PPGREE ENT12 — 12D ov /..12 a, �l APPOINTMENT OF A VICE—CHAIR OF THE FRIDLEY HOUSING & REDEVELOPMENT AU'IBORITY 13 CONSIDERATION OF THE APPROVAL OF JOHN "JOCK" ROBERTSON AS EXECUTIVE DIRECTOR OF THE FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY 14 — 14C ESTIMATES 15 — 15A CLAIMS 16 OTHER BUSINESS: ADJOURNMENT: CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 1986 CALL TO ORDER: Chairperson Commers called the July 10, 1986, Housing & Redevelopment Authority meeting to order at 7 :10 p.m. ROLL CALL: Members Present: Larry Commers, Duane Prairie, John Meyer, and Walter Rasmussen (arrived at 9:10 p.m.) Members Absent: Virginia Schnabel Others Present: Mayor William Nee Councilman Robert Barnette Councilman Dennis Schneider Councilman Brian Goodspeed Nasim Qureshi, HRA Director Dave Newman, HRA Attorney Jock Robertson, Community Development Director John Flora, Public Works Director Rick Pribyl, Finance Director Julie Burt, Asst. Finance Officer Samantha Orduno, Management Asst. Robert Levy, Rice Plaza Gary Van House, Columbia Park Properties Gus Doty, Fridley Plaza Office Building Jim Winkels, Winfield Development Dave Weir, Woodbridge Properties PRESENTATION OF. PLAQUE - ELMARS PRIEDITIS : Mr. Commers presented a plaque to Mr. Prieditis in appreciation for his ten years of service as a member of the Housing & Redevelopment Authority. Mr. Commers stated with Mr. Prieditis' architectural background, he made a major contribution to the HRA and community. Mr. Prieditis stated he has learned a lot while serving on the HRA and thanked Chairperson Commers and members of the HRA for his experiences. APPROVAL OF MINUTES OF JUNE 12, 1986: MOTION BY MR. MEYER, SECONDED BY MR. PRAIRIE, TO APPROVE THE JUNE 12, 1986, HOUSING AND REDEVELOPMENT AUTHORITY MINUTES AS WRITTEN. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CORS DECLARED THE MOTION CARRIED UNANIMOUSLY. HOUSING & REDEVELOPMENT AUTHORITY MEETING. JULY 10, 1986 PAGE 2 1. STATUS REPORT ON RIGHT-OF-WAY ACQUISITION AND STREET IMPROVEMENTS TO MISSISSIPPI STREET: Mr. Qureshi stated the County has delayed the plans for the improve- ments to Mississippi Street because of difficulty in acquiring the right-of-way. He stated the plan is to begin construction next year. Mr. Qureshi stated the HRA authorized an agreement with Northern States Power for relocation of the power lines; however,` because right-of-way is not fully acquired, it would be necessary to delay this project until next year. He stated he understands NSP still agrees to the original estimated cost of $95,000. Mr. Qureshi stated no action is needed at this time by the HRA, but he wanted to keep them informed regarding this project. 2. UPDATE ON THE LUNDGREN DEVELOPMENT: Mr. Qureshi stated two items that were critical to meet the timetable in the Lundgren project was a new letter of credit and completion of the financing. He stated Mr. Lundgren has submitted the letter of credit and understands he is working diligently to complete the financing for the August deadline. Mr. Meyer asked what this new letter of credit replaces. Mr. Qureshi stated the HRA had an agreement with Mr. Lundgren for his development which became null and void in May and this included a letter of credit. He stated the HRA entered into a new agreement and a new letter of credit, conforming to the new agreement, was requested. Mr. Meyer questioned what this letter of credit means in terms of Mr. Lundgren's project. Mr. Qureshi stated if the HRA performs all their obligations and there is a default on the part of the developer, the HRA has the right to call in this letter of credit for $200,000. Mr. Meyer asked if the HRA would have to show damages for this amount. Mr. Newman stated the letter of credit is active now and if Mr. Lund- gren doesn't have his financing established by August 1, under the terms of the contract and letter of credit, the HRA can call for the full amount of $200,000. Mr. Qureshi stated as part of the agreement with Mr. Lundgren, the HRA would acquire property for the construction of the building. He requested the HRA consider Resolution No. BRA 9-1986 which auth- orizes the acquisition of Lot 1, Block 1, Sylvan Hills Plat 7, 248 Mississippi Street by eminent domain proceedings, subject to receipt of the financial commitment from Mr. Lundgren. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 1986 PAGE 3 Mr. Newman stated the reason the resolution is before the BRA at this time is because title to this property must be delivered by December 1 and the soonest the property could be acquired by eminent domain is 90 days. He stated they will continue to negot- iate with the owner to acquire the property without going through the eminent domain proceeding. MOTION BY MR. PRAIRIE, SECONDED BY MR. MEYER, TO APPROVE RESOLUTION NO. HRA 9-1986 DIRECTING CONDEMNATION AND DETERMINING_THE .NECESSITY FOR AND AUTHORIZING THE ACQUISITION OF CERTAIN PROPERTY BY PROCEEDINGS IN EMINENT DOMAIN ON LOT 1, BLOCK 1, SYLVAN HILLS PLAT 7, 248 MISSISSIPPI STREET N.E., FRIDLEY, MINNESOTA. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. STATUS REPORT ON COLUMBIA PARK PROPERTIES EXPANSION PROJECT: Mr. Qureshi stated in 1982, the HRA entered into an agreement with Columbia Park Properties for construction of their clinic as the first phase of development. He stated part of the agreement was the option to acquire the property west of the clinic for an addition. Mr. Qureshi stated there were communications this spring with Columbia Park Properties regarding their plans to proceed with this addition and to make sure the construction would be in conformance with the agreement entered into with the HRA. Mr. Qureshi stated a communication was received from Columbia Park Properties on June 12, 1986 where they indicated they would be unable to proceed with this development and wanted to make arrange- ments to lease the property. Mr. Van House, Columbia Park Properties, stated the development for Columbia Park Properties has been an excellent experience and they continue to plan for expansion and to expand their practice at the Fridley location. He stated a number of factors have happened in the health care community since 1982 characterized by a tremendous amount of competition led by the HMO organizations. He stated their practices have not been growing as fast as anticipated, however, they are expanding at other sites including a $5,000,000 project in Columbia Heights. Mr. Van House stated Columbia Park Properties feel they have to be more conservative in their building plans for the next several years, but if they continue to grow, they should be in a position to expand at Fridley. He stated Columbia Park Properties has three other locations and the Fridley facility is their specialty center and serves as a feeder from the other clinics. HOUSING & REDEVELOPMENT AUTHORITY MEETING,_ JULY 10, 1986 PAGE 4 Mr. Van House stated they are asking for continued support from the HRA in resolving a short term problem with their parking. He stated they have a temporary permit for some gravel parking, how- ever, it expired the end of June and they need some remedial action in order to continue the parking. Mr. Qureshi stated because Columbia Park Properties have decided not to expand at this time, they propose to lease the property to serve their parking needs. He stated the HRA would have to decide whether they wish to extend the option for two more years by leasing property to them. He stated, hopefully,before the end of the two years, Columbia Park Properties can firm up their plans and proceed with construction. He stated if this cannot be accomplished, they would have no further rights to the property. Mr. Qureshi stated from a planning point of view, it makes more sense for the clinic to expand rather than bringing in another development to the west of the clinic's property. Mr. Qureshi stated staff would recommend the HRA enter into a lease agreement for two years beginning June 1, 1986 at the rate of $15,000 per year. He stated after this period, the option on the property would expire. He stated the portion of the property used for parking should be blacktopped and the balance restored as it was before the temporary parking permit. MOTION BY MR. PRAIRIE, SECONDED BY MR. MEYER, TO APPROVE THE PROPOSAL SET FORTH BY THE HRA DIRECTOR FOR THE HRA TO EXTEND THE OPTION ON THIS PROPERTY FOR TWO YEARS ON THE CONDITION COLUMBIA PARK PROPERTIES SATISFACTORILY BLACKTOP A PORTION OF THE PROPERTY TO BE USED FOR PARKING AND RESTORE THE BALANCE TO THE CONDITION IT WAS IN BEFORE, WHICH IS SODDING. IF AT THE END OF THIS TWO YEAR PERIOD, CON- STRUCTION HAS NOT BEGUN, THE OPTION THEY HAVE TO PURCHASE THE PROPERTY WILL ALSO EXPIRE. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. UPDATE ON LAKE POINTE CORPORATE CENTER: This item will be considered later in the meeting. 6. STATUS REPORT ON PARKING FOR FRIDLEY PLAZA OFFICE BUILDING PARTNERSHIP: Mr. Qureshi stated the HRA received a copy of a letter sent to Mr. Doty and the trustee of the Fridley Plaza Office Building Partnership dated June 30, 1986, by Mr. Dave Newman. He stated this letter is in regard to non-payment for use of the parking lot. Mr. Newman stated the HRA received a copy of the lease they entered into with the Fridley Plaza Office Building Partnership for joint use of the parking lot. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 1986 PAGE 5 Mr. Newman stated the lease provides that beginning on July 1 of last year, the tenant was to pay rental of $800 per month for the non-exclusive use of the parking lot. He stated none of the pay- ments have been made. Mr. Newman stated correspondnece has been sent to Mr. Doty regarding his intentions, but no formal response has been received. Mr. Newman stated a letter was sent on April 30, 1986 to Mr. Doty and the trustee regarding this default. He stated he has not re- ceived any written correspondence in reply to his letter. Mr. Newman stated he felt the HRA should be aware of this situation so a determination can be made on how they wish to proceed. Mr. Doty stated the lease also provides for 166 parking spaces and there are only 142 and this number decreases with spaces reserved for City visitors and vehicles and the handicapped parking. He stated there has been a parking problem for the last 18 months and it has been that long since he brought it to the attention of City officials. He stated to ignore the problem isn't much of a solution. He stated the $800/month isn't the problem, but he wants someone to talk to them to resolve the parking problem. He stated if there were 166 spaces, there wouldn't be a problem. Mr. Qureshi stated arrangements have been made with Target to use their lot to park 27 vehicles. He stated if you take that into consideration, there are more than 166 spaces for the City Hall and the office building. He stated there are spaces available to park 166 vehicles , even though all of these aren't striped. Mr. Qureshi stated if it is the desire to show 166 parking spaces, others could be striped to meet this requirement. He stated the argument that they don't have 166 parking spaces so they are not going to pay the amount provided for in the lease agreement doesn't seem reasonable. Mr . Doty stated all he is asking is for his day in court and for someone to listen. He suggested the parking between the office building and City Hall be designated as visitor parking and limited to one-half hour, with ten minute parking along the curb. He stated if the width of the parking spaces was reduced from 10 feet to 9 feet, you would gain 12 additional spaces. Mr. Doty stated both the clinic and Target have nine foot parking spaces. Mr. Qureshi stated he has discussed with the City Council the possibility of reducing the width of some parking spaces. Mr. Commers asked who was responsible and why someone hadn't talked with Mr. Doty. HOUSING & REDEVELOPMENT AUTHORITY MEETING. JULY 10, 1986 PAGE 6 Mr. Newman stated he felt this was a two-way street. He stated several efforts were made to contact Mr. Doty and he promised a letter in which he would outline his position, but it was never received. Mr. Doty stated he does plead guilty in not writing a letter, but would rather talk to them in person. Mr. Commers felt staff and Mr. Doty should try to solve this problem and if they cannot, the HRA will then address it. Mr. Meyer stated if the HRA is guaranteeing 166 parking spaces, he feels they have an obligation to furnish these and, if this cannot be done, the lease agreement should be revised. Mr. Doty stated it has been suggested the cost be reduced on a pro- rata basis. He stated the issue isn't really the cost, but there isn't sufficient parking. Mr. Newman stated he and staff would try to solve this problem with Mr. Doty. He stated if it can't be resolved by the next meeting, it may be necessary to proceed with some legal action. 7. WINFIELD DEVELOPMENT'S REQUEST FOR ASSISTANCE: Mr. Qureshi stated Mr. Winkels appeared before the HRA at their last meeting and advised them about the soil problems at their proposed construction site. He stated Winfield Development is requesting assistance from the HRA to correct the soil problems. Mr. Qureshi stated the HRA in the past has provided assistance for soil correction to several developments such as Mr. Paschke's, Johnson Printing and Vantage Companies. He stated staff would recommend the HRA provide $30,000 in assistance as the estimated cost for correction is in excess of $116,000. Mr. Winkels stated 15,000 yards of material need to be removed. He stated he understands there is some concern why they didn't take this into consideration when the property was purchased four years ago. He stated they did not anticipate the severity of the problem and it came to light when the U.S. Swim & Fitness Club was under construction. Mr . Winkels stated the material to be removed is where actual construction of the building would take place and a part of the parking area. He stated it doesn't involve the entire site, but goes beyond the building itself. Mr. Qureshi stated the property is not in a Redevelopment District. He stated if this was the desire of the HRA, it would be necessary to go through the formal procedures to include it in the increment district. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 1986 PAGE 7 Mr. Meyer stated he thought it was unusual that Winfield Develop- ment didn't have knowledge of the poor soil conditions when they purchased the property. Mr. Winkels stated they did have soil tests done and the logical question now is if they are coming back after the fact. He stated the severity of the problem was not known at that time. Mr. Winkels stated they are trying for an upscale project and all indicators are the market is right for such a building. He stated they can't construct something that doesn't make sense economically. He stated they may be asking for a fair amount in terms of percent- ages, but didn't feel it was out of line in terms of the value of the project and amount of taxes generated. Mr. Commers stated the recommendation from staff is for $30,000 in assistance. He asked Mr. Winkels if he was saying if they have the $90,000 requested the project would definitely proceed. Mr . Winkels stated they have to make some decisions in the next several weeks and should know if they will receive the bond. He stated he is not saying if they don't receive the assistance, the project wouldn't proceed. He stated they want to have all the information available to make the best decision. Mr . Qureshi stated taking into account what has been done in the past, $30,000 seems a reasonable figure, but it is the HRA's prerogative to increase or decrease this amount. Mr. Prairie stated it may be a little higher than the others, but seemed reasonable. Mr. Meyer stated if the facts are that the soil correction is going to be, basically, under the building, it is crucial to the develop- ment and felt the $30,000 figure was reasonable. MOTION BY MR. MEYER, SECONDED BY MR. PRAIRIE, TO APPROVE, IN CONCEPT, $30,000 IN ASSISTANCE TO WINFIELD DEVELOPMENT TAKING INTO CONSIDERATION THE FACTS KNOWN TODAY AND DIRECT STAFF TO DRAW A FORMAL AGREEMENT FOR THE NEXT HRA MEETING TO TAKE THE NECESSARY STEPS TO INCLUDE THIS PROPERTY IN THE INCREMENT DISTRICT. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 8. CONSIDERATION OF FINAL PAYMENT FOR TARGET PROJECT: Mr. Commers asked about the $60,000 excess proposed to be set aside for future perimeter improvements. Mr. Qureshi stated this excess could be handled in several ways; either to set this amount aside for future improvements in- Phase II or to close Phase I of the Target- project. He stated future improvements could be considered in conjunction with the Mississippi Street improvement. HOUSING & REDEVELOPMENT AUTHORITY MEETING,_ JULY 10, 1986 PAGE 8 MOTION BY MR. PRAIRIE, SECONDED BY MR. MEYER, TO RECEIVE THIS INFORMATION AND INSTRUCT STAFF TO CLOSE THE TARGET PROJECT WITH THE EXCESS TO BE RETURNED TO THE HRA'S GENERAL FUND, WITH THE UNDERSTANDING ADDITIONAL IMPROVEMENTS WILL HAVE TO BE DONE IN CONJUNCTION WITH THE MISSISSIPPI STREET IMPROVEMENT. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 9. CLAIMS: MOTION BY MR. MEYER, SECONDED BY MR. PRAIRIE, TO APPROVE THE CHECK REGISTER DATED JULY 10, 1986. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Robertson stated a claim has been received from Storer Cable in the amount of $5,000 for the relocation of underground cable. He stated the HRA has previously agreed to pay this cost and the work has been completed and a certificate of completion submitted. MOTION BY MR. PRAIRIE, SECONDED BY MR. MEYER, TO AUTHORIZE PAYMENT OF $5,000 TO STORER CABLE FOR THE RELOCATION OF UNDERGROUND CABLE. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 10. OTHER BUSINESS: A. RICE PLAZA - MR. LEVY: Mr. Levy, Rice Plaza, stated he would like to request the HRA to either remove Rice Plaza from their Redevelopment District or proceed with a plan to acquire the entire parcel. Mr . Levy stated he understands the County has engaged appraisers to look at the property on a joint basis relative to the needs of the HRA and County. He stated he understands the appraisers have pro- vided some preliminary information. Mr . Commers stated the HRA has not been presented with any infor- mation from the appraiser. He stated he had no problem with considering this item at the next meeting, if figures are available. Mr. Qureshi felt two elements are involved. He stated one is the general philosophy if the HRA wants to acquire the property at this time when they don't have approved plans for this site. He stated, on the other hand, if the HRA felt it was prudent to acquire it, cost figures would have to be presented at the next meeting. Mr. Commers felt this should be done so some decision could be made whether or not to acquire the property so Mr. Levy and his tenants will know where they stand. HOUSING & REDEVELOPMENT AUTHORITY MEETING JULY 10, 1986 PAGE 9 Mr . Commers stated the history of the HRA has been, unless there is a specific purpose to acquire property, they are hesitant to do so and hold it for any length of time. He felt the distinction here if property is being taken for right-of-way and the Lundgren project, it would make sense to proceed and perhaps acquire the entire parcel. He stated, however, they may not financially be in a position to do so. Mr. Prairie stated he has not heard of any costs and felt further information was needed before considering this item. Mr. Meyer stated he is not philosophically opposed to taking the entire parcel. He stated it would depend on the cost and these figures should be available by the August HRA meeting. Mr . Levy stated there is a "range" figure, but he hasn't had a chance to evaluate it. He felt if they don't reach a point after the August meeting where the HRA either takes them out of the Redevelopment District or have a negotiation process to acquire the property, the lines would be drawn from which they could work. He stated he would wait until the August meeting so the HRA can review the cost figures . Mr. Levy stated the appraiser is reluctant to share the figures without specific authorization from the County and HRA. He stated he would like the opportunity to review them and respond before the August meeting. Mr. Newman stated he didn't have a problem with the appraiser re- leasing these figures, but it is the County who ordered the appraisal and he would have to contact them. Mr. Commers asked Mr. Newman to convey to the County that the HRA has no objections to disclosing these appraisal figures. Mr. Newman stated it would seem prudent to have Mr . Levy's feedback for the next meeting. B. APPOINTMENT OF HRA EXECUTIVE DIRECTOR: Mr. Qureshi stated in accordance with an agreement between the City and the HRA, it is necessary for the HRA to approve the selection of an Executive Director. He stated Mr. Jock Robertson was hired as the City's Community Development Director and has assumed the job res- ponsibilities once held by Jerry Boardman who served as the Executive Director of the HRA. Mr. Qureshi stated an informational packet regarding Mr. Robertson's background has been submitted to the HRA and he would recommend Mr. Robertson be considered for appointment as the Executive Director. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 1986 PAGE 10 Mr. Commers stated he felt this matter should be carried over to the next meeting and placed on the HRA's agenda as a formal item so a vote may be taken by the HRA. C. APPOINTMENT OF VICE-CHAIRPERSON OF THE HRA: Mr. Commers requested that the appointment of a Vice-Chairperson for the HRA be placed on the agenda for the next meeting. RECESS: Chairperson Commers declared a recess at 9:05 p.m. RECONVENED: Chairperson Commers reconvened the meeting at 9:30 p.m. The following members were present: Chairperson Commers , Duane Prairie, John Meyer and Walter Rasmussen. 5. UPDATE ON LAKE POINTE CORPORATE CENTER: Mr. Newman stated the HRA has received correspondence outling the summary of some proposals staff presented in an attempt to resolve the impasse with Woodbridge Properties. Mr. Newman stated a meeting was held on Tuesday, July 8, 1986 which Chairperson Commers attended and what evolved from that session were suggestions the developer should meet certain benchmarks for con- struction. He stated the developer didn't want to be tied to a certain schedule because of fluctuations in the market and conflicts with permits. He stated, by the same token, the staff wanted certain requirements for performance through the course of this development. Mr. Newman stated the developer was concerned because of the delays with the Indirect Source Permit and contracts being re-bid, he is incurring some damages. He stated when construction does commence, landscaping will not be completed as originally visioned. Mr . Newman stated the concept proposed was if the developer could complete the entire project and meet benchmarks of 120,000 square feet completed by next year ; 200,000 square feet completed in five years; 400,000 square feet completed in ten years and 749,000 square feet completed in fifteen years, he probably should be entitled to the $5.6 million revenue note plus interest. Mr. Newman stated if the increment isn't sufficient to make the annual payment, it is lost forever. He stated if the developer is able to meet these benchmarks, the payment could be recovered at the end. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 1986 PAGE 11 Mr. Newman stated it is anticipated the costs of the public im- provements will exceed the amount budgeted. He stated it was agreed the HRA will share those costs with the developer to the extent they exceed the original projections. Mr. Newman stated the HRA agrees to make the improvements to Highway 65 which may be required under the Indirect Source Permit. He stated the parties will cooperate to obtain the Indirect Source Permit for the least amount of improvement to Highway 65. Mr. Newman stated the next step would be for the developer to provide the sum of $1,000,000 to the HRA and they, in turn, would provide him with a deed for Phase I parcel and then complete acquisition of the Johnson property. He stated within 15 days after receipt of the $1,000,000, contracts would be awarded for the public improvements, with the exception of the landscaping. Mr. Newman stated within 12 months of awarding the first contract, the HRA agrees to complete the improvements on the site. Mr. Newman stated construction would commence four months after conveyance of this parcel or by November 30 of this year, with construction completed within 30 months. He stated the buildings would be substantially completed, but the interior walls may not be in place until space is leased. Mr. Newman stated those dates of completion may be delayed in the event the permits which need to be issued by the City are not given. He stated the City would not unreasonably withhold the permits if plans are consistent with the agreement. Mr. Newman stated if the City can't have the improvements of Highway 65 finished by July 1, 1989 because of requirements of the Indirect Source Permit, the developers obligation to meet these construction deadlines will be set back for a likely amount of time. Mr. Newman stated if the developer completes the construction schedule and the increments are not sufficient, the HRA agrees to pay that sum to him. He stated those arrearages will accrue interest at the rate of 90 day Treasury Bills and if an arrearage occurs, it allows the HRA to go in and fund those arrearages. Mr. Newman stated Woodbridge, to date, has incurred some substantial engineering costs estimated at about $75,000 for preparation of the public improvements on the site. He stated Woodbridge has decided to front those expenses, however, once the $1,000,000 is paid, the HRA would reimburse for these costs providing they are reasonable and in line with customary charges. Mr. Commers stated this was the first time he had heard about these charges and asked if it was written that they reimburse the consultant or the developer. Mr. Newman stated they would reimburse the con- sultant. on- sultant. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 1986 PAGE 12 Mr. Qureshi stated there was a similar approach in the other agree- ment that when the $1,000,000 was received, the HRA would take res- ponsibility for the engineering costs. Mr. Rasmussen asked if there was a list on these costs. Mr. Qureshi stated they should be reasonable and comparable to industry standards. Mr. Rasmussen stated that he does not want the developer to keep coming back to HRA for fkurXher assistance ever tjme he h s spjne prpblenss M yetasei pans were prepare unser t�e erection o the developer. Mr. Qureshi stated it was a combined effort between the developer and the City staff. Mr. Meyer asked if these plans were designed according to standards and concepts agreed to by the City staff and if the City controlled development plans just as though the developer wasn't in the picture. Mr. Flora answered in the affirmative. Mr. Newman stated what is proposed is a significant departure re- garding the level of assistance provided to the developer. He stated due to the scope and quality of the development, the HRA can justify why they may want to deviate from their customary practices. Mr. Newman stated increment will go to pay the General Obligation Bond and if not enough increment is generated to pay the Limited Revenue Note that is lost forever. Mr. Newman stated if the developer meets the benchmark standards, then the HRA guarantees he will re- ceive all the payments he is guaranteed under the Limited Revenue Note. Mr. Meyer stated he felt the development schedule was ultra-conservative. He questioned if there was any way the developer could assign all the rights granted to him to some other developer. Mr. Newman stated this could be done, but all the agreements would remain in force. Mr . Rasmussen asked if the HRA would have the right to approve or disapprove such an arrangement. Mr. Newman stated he believed they would not. Mr. Prairie asked if this occurred, if the quality of the development had to be maintained. Mr. Newman stated there is a quality develop- ment plan attached to the agreement and a developer would be required to meet these standards. Mr. Newman stated the agreement was restructured, after consultation with the bond counsel, and if the HRA concurs with this agreement, it could be approved subject to technical changes as he felt some phrasing may have to be reworded. He stated he wanted to further clarify that even though the HRA is guaranteeing this payment, it isn't going to impair the ability of the HRA to proceed with other developments. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 1986 PAGE 13 Mr. Newman stated it is possible for the developer to meet his construction schedule and not make enough increment to pay his Limited Revenue Note. He stated the HRA is then obligated to make up that deficiency. Mr. Newman stated it is extremely un- likely this would occur. He stated if the developer is meeting his benchmarks and the increments aren't sufficient, the HRA can buy a Treasury Bill to secure its potential future obligation. Mayor Nee asked if something changed in the agreement to go beyond an- 18 .year payment. Mr. Newman stated because of the initial delay and construction could not begin as intended, the developer believes it is costing him considerably. Mr. Newman stated he will also not be able to proceed with the next phaseof construction until all the re- quirements of the Indirect Source Permit have been met. Mayor Nee stated he did not like the option for the extra seven years. He felt to extend it one year would be acceptable, but to extend it for seven years is another issue. Mr. Newman stated it is extremely remotethis would happen if develop- ment-occurs as under this agreement. He stated if, in fact, the developer performs according to this standard, he believed the benefit will be such that he will receive his payments under the Limited Revenue Note in the stated 18 years. Mayor Nee stated he can accept the extra $1,000,000 for improvement of the intersection, but it bothers him that they can't go forever in tapping the public coffers on increment, sometimes it has to pay back. Mr. Newman stated if this project is completed, it will be the largest total development in the City and have the largest concent- ration of employees. He stated it is the decision of the HRA and City Council to make a determination if it is worth it and to deviate some from their norms. Mayor Nee stated when you talk about a 25 year payoff, something more has to revolve. He stated the revenue bond is changed and made a guarantee by the HRA and it wasn't this way before, and to guarantee the entire bond is an entirely different story. Councilman Barnette stated the concensus of the Council was to go along with the extra year because of delays in construction, but felt limits need to be set. Councilman Schneider stated the risk has shifted to the City and it shouldn't be there. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 1986 PAGE 14 Mr. Newman thought it could be looked at in two ways. He stated there is a greater obligation by the HRA, but the developer is taking the risk of meeting these construction phases schedule. Mr. Weir stated when they began plans for this project, no one knew they would be limited to one building. Be stated as a result of the requirements imposed by the State through the Indirect Source Permit, they cannot market any space on this property, other than the one building and restaurant, until improvements are made to the intersection. He stated this is a major difference than what was contemplated and what they wished to accomplish on this site. Mr. Weir stated they would prefer not to have a schedule. He stated they are in the business of investment building and may not have tenants when they begin construction, as opposed to having a tenant sign a lease and then begin construction of their building. Mayor Nee felt if they are going to renegotiate the contract, it should go back to the beginning. He stated he assumes an experienced builder would know what is required such as the Indirect Source Permit. He felt when they entered into the agreement, the developer accepted this kind of hazard. He stated he didn't agree it was 100% of the City's responsibility to anticipate the reaction of the Highway Depart- ment and the Pollution Control Agency. He stated staff convinced him to pay the cost of the intersection improvement, but beyond that he has problems. Mr. Meyer stated he is concerned and understands the agreement has been broadened far beyond the original agreement. He stated he had previ- ously expressed his opinion that the HRA had gone about as far as they could on the basis of staff recommendations. He asked if staff felt they could go from 18 to 25 years. Mr. Newman stated they aren't agreeing to it, but it is a possibility. Mr. Commers stated the HRA is saying this is a Redevelopment District set up for 25 years. He stated it is agreed everything would be done in 18 years, but since it is a 25 year district, there is the option to re-bond to the extent of the full district. He stated bonds were issued for a shorter period, even though it was a 25 year district. He stated it seems it would be better to pay it off as soon as possible to free additional funds. Mr. Newman stated under the original agreement, the note itself would have been paid off in 18 years and, if there were any arrearages, they would have been forgiven. He stated because of the survival of arrear- ages, there is a potential to fund that payment for a longer period. Mr. Qureshi stated this development will be quality construction and, when the completed, the value would be about $80,000,000. He stated the decision to be made by the HRA is if it is worth the risk. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 1986 PAGE 15 Mr. Qureshi stated the help would be about 157. upfront and if the developer performs to the standards set by the HRA, he receives his money or else he loses. He stated the agreement provides if the increment received is not sufficient to make any of the scheduled payments under the Limited Revenue Note, the HRA would pay the loss with interest. Mr. Qureshi stated Mr. Weir is willing to forego the interest, if given more time for construction of the first building. Mr. Qureshi stated the question has been asked if the HRA is giving too much. He stated there is so much uncertainty in the market and tax structure so this would be a difficult question to answer. He felt substantial help is being provided, but if the anticipated quality development occurs it would be worth it. Mayor Nee stated the HRA is guaranteeing the payment of the note and this wasn't in the original agreement. Mr. Qureshi stated it is guaranteed only if the developer performs as outlined in the agreement. Mayor Nee stated the present agreement states if he performs, the HRA will pay off the note. Mr. Qureshi stated what was in the previous agreement was the developer loses the note, if he doesn't perform. Councilman Schneider asked why increment wouldn't be generated if the developer performs to the standards outlined in the agreement. Mr. Commers stated there may not be enough taxes generated to obtain the increment. Mr. Qureshi stated the question is if the developer performs, should he get the revenue note paid. He stated there are certain benchmarks for this development which must be met and if this is done, only then does he receive the additional HRA help. Mr. Weir stated no one believed the Indirect Source Permit would have restrictions over the rate of their development. He thought they would be able to construct three or four buildings at a time in order to make the increment available. He stated the PCA is now requiring a complete installation of the improvements as opposed to simply an endorsement that improvements will be completed. Mr. Weir stated if construction cannot proceed, it may preclude delivery of the incre- ment. Mr. Commers stated there are a lot of technicalities they could get into, but felt it comes down to the issue if the HRA wants the project and, if the developer performs, should the HRA guarantee he gets his money. He stated if he doesn't perform, he would lose. Mr. Commers stated there is no question, if the developer performs, the HRA will HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10,_ 1986 PAGE 16 have substantial tax increment to meet all their obligations. He stated it is the question of how they capture it and howthey use it. Mr. Qureshi suggested two change's be made in the Addendum to the Contract with Lake Pointe Investment Company dated July 9, 1986. He stated one change would be to extend the date of completion for the first 120,000 square feet from December, 1987 to June, 1988. He stated the other change is to eliminate the interest payments on the Limited Revenue Note which is covered under Item 11 of the agreement. Mr. Commers stated there are some other technical items that need to be reviewed for possible change. Mr. Rasmussen asked if more time was needed to refine the agreement. Mr. Qureshi stated if the HRA felt the general structure of the agree- ment was reasonable, it should be approved because time is of the greatest essence as several months of the construction season have already been lost. Mr. Qureshi stated if the agreement is approved, he would request a special Council meeting on July 14 to consider the bids. Mr. Newman stated he understands Mr. Prairie has indicated he would abstain from any vote on this agreement as his construction company is one of the bidders on this project. MOTION BY MR. RASMUSSEN, SECONDED BY MR. MEYER, TO APPROVE THE ADDENDUM TO CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE HRA AND LAKE POINTE INVESTMENT COMPANY DATED JULY 9, 1986 WITH THE DATE FOR SUB- STANTIAL COMPLETION OF THE FIRST 120,000 SQUARE FEET TO BE CHANGED FROM DECEMBER 31, 1987 TO JUNE 30, 1988 AND TO ELIMINATE THE INTEREST PAYMENTS ON THE LIMITED REVENUE NOTE AS COVERED UNDER ITEM 11 OF THIS AGREEMENT. UPON A VOICE VOTE, CHAIRPERSON COMMERS, MR. RASMUSSEN, AND MR. MEYER VOTED AYE, MR. PRAIRIE ABSTAINED FROM VOTING. CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Weir stated if it wasn't for the commitment they had from day one from the HRA, City Council and staff, they would be looking at a far different concept plan for this site. Councilman Barnette stated to Mr. Commers that at the last meeting, he was very adamant about his feelings the HRA gave all they could for this project. He stated he respected that position, but now has the feeling he is convinced the action taken by the HRA is good. Mr. Commers stated in evaluating the risk the HRA is undertaking, he felt it was very minimal in respect to the benefits they would receive. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 10, 1986 PAGE 17 Mr. Qureshi stated it may be appropriate to ask Mr. Weir if the agreement is acceptable to him. Mr. Weir stated as a matter of procedure, he would recommend it to the pension fund people who are involved with this project. Mr. Commers stated he hopes the developer will be able to perform like everyone wishes. Mr. Weir stated they are looking forward to being here in Fridley a long time. Mr. Qureshi stated he has expressed his feelings before that the only reason staff felt they should proceed is because of the quality of this project and the ultimate benefit to the community. He stated he hoped they have arrived at an agreement and can proceed full force to get this project accomplished. He stated he recognizes no one can predict the future, but if the past is any indication, he felt this develop- ment would be one of the greatest in the State of Minnesota. Mr. Qureshi stated he appreciated the help of Mr. Commers as he felt he had contributed new ideas to move forward with the project. Mr. Commers thanked staff for all their time and determination in negotiating an agreement. ADJOURNMENT: MOTION BY MR. RASMUSSEN, SECONDED BY MR. MEYER TO ADJOURN THE MEETING. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONNERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE JULY 10, 1986, HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 11:05 p.m. Respectfully submitted, Carole Haddad Recording Secretary 1 CITY OF FRIELEY HOUSING AND REDEVELOPMENT A THORITY MEMORANDUM 40: CHAIRMAN OOMMERS AND ARA COMMISSION MEMBERS FROM: NASIM M. QURESHI, BRA DIRECTOR SUBJECT: LEASE PGREEMENT WITH COLUMBIA PARR PROPERTIES DATE: JULY 28, 1986 Since the termination of the Easement Agreement with Colutmia Park Properties on June 1, 1986, City staff have been negotiating with representatives of Columbia Park Properties to resolve the issue of the Clinic's parking problems and continued plans for future expansion of their exisiting clinic. At the July 10, 1986 meeting of the HRA, the staff recommended that the BRA enter into a lease agreement with the Clinic for two (2) years beginning June 1, 1986 at a rate of $15,000 per year. Members of the BRA voted to extend the option on this property for the requested two years at the rate described afterwhich the option will expire if construction has not commenced. A condition of the Lease Agreement is that the parking facility be satisfactorily blacktopped. The Lease Agreement has been executed and is attached herein for you information. There has also been an additional request from Columbia Park Properties which is suinamarized in the enclosed letter. ridkr Plaza Clinic ) i A4IInisersih Asc.NE ridfey,MN 55432 'hone: Pit At lL 571-0457 \1111 I'RAN Columbia Park MedicalGroup \ If 1 haul NI Ll hrrg M l) .. .. K hu,herMl) i l Aro NI P Has,umam M D 'I Hedlund M D I' Rabie M D It Ragan M U '.TERNAL MEDICINE Ge>undheit M D ( Long MU AIS TETRICS-GYNECOLOGY F Bong MD Pirrrx,,Nurse Prxtitn>ner July 22, 1986 Nl Radie M U I Tiss,er M D RTHOPEDIC SURGERY 'I Ditmanson M D I'Tountas M D RGERY A Binder ,\ !AnsonnM Mr. Nasim Qureshi M D xu(;) City Manager, City of Fridley \ Orihr,NI I) ( Park MD 6431 University Ave. N.E. IIT H AL MOL.CX;\ n I aeanda NI D Fridley, MN IN))AR (,N)IOCr ENT; 55432 N Skogerbor NII) PIATRICS Hada,NI n • McLellan NI D Dear Mr. Qureshi: .1 K Rowe.Nurse Practitioner .L1 I egmann M D iCC UPATION.AL HEALTH N Pries M D.MPH Thank you for encouraging the Housing and Redevelopment C. JordAL an ti Association to give approval to a lease on the optioned C; Jordan R P T I)IOL(x;Y property next to the clinic. I am presently completing L,hnsonM.A.000 irooklyn Park Medical Center drawings and seeking bids to pave space for approximately 80574thAve.N ;rooklyn Park,MN 55443 60 cars. before we finalize the drawings and select a con- 'hone:(612)54e-8010 struction company I would like to have your response to A\11L1 PRACTICE 1 L Lnckson M D the following questions: Harper M D 7 H,ilstrom NI D Holt NI D 1. Would the City approve a 9 ft X 20 ft stall size Keenan�\ Reenan D M Miller NI D for parking designated for employees only? .; O1>o>onM U N Riley M D i Nt Sahlslrom NI D L LAright M D. \TERNAL MEDICINE 2 a Would the City consider, as you proposed at our E Engebretson M D July 1st meeting, constructing the parking for P Iohnson M D , Long MD the Clinic - assuming that the cost would be less iNI RadkYNECOIOC;Y eMDthrough the City of Fridley's contractors? I DIATRICS r Staub M D ,CLI'ATIONAL HEALTH I assume that you are preparing a lease for the property and "L Johnson NI D olumbia Park Clinic will forward it to me for signature at your earliest convenience. 620neapolCentral s,MNAve.554 I am also assumingthat you have released our check for $53,600 •tinneapolis,MN 55418 'hone:(412)788.9601 and have sent it to our Controller. ;MI) I'RACTI(E R Bachman NI D IEBEfeIadMD Thank you for your time and consideration. I look forward to \' Fugglestad M D. .R HdgedidMD. your response on these matters. N Hoa NI D A Johnson M D E Mertens M D C.Morgan M D. Sincerely, STERNAL MEDICINE I) Johnson M.D C.Long M D. A-L.Spenny M.D. G r j iBSTETRICS-GYNECOLOGY I.K Bong M.D ;J I Tessier M.D. Gary A. Van House SYCHOLOGY BruePh.D. Chief Executive Director LRGERY V Fuglestad M.D. ,CCUP.ATIONAL HEALTH GAVH a jmw C Hoversten M D. :ew Brighton Family Physicians 21 5th Ave.NW :ew Brighton,MN 55112 hone:(612)636-9174 A.MIL't PRACTICE I E Clifford M D ,dministration Office rookdale Corporate Center II 200 Shingle Creek Parkway th Floor 'hone: (6 Center, 45 55430 Your Nv;1-Iealth Centers 'krone:(612)560.3450 Personal HIEF EXECUTIVE DIRECTOR F 54norelh 1B MEMS TD: David Newman, City Attorney NEM) FROM: Jock Robertson, Community Development Director MEND DATE: July 21, 1986 REGARDING: Updated Outline of Lease Agreement with Columbia Park Properties The following items should be incorporated into a lease agreement as Nasim and I discussed with you on Wednesday, July 16, 1986: 1. The lease agreement should run frau June 1, 1986 to May 31, 1988. . 2. The lease amount will be $15,000 a year. 3. The lease should be described as "the easterly 89 feet of Lot 2, Block 2, Fridley Plaza Center, Anoka County, Minnesota". This is an area of approximately 26,250 square feet. 4. The lessee agrees to pave any portion or all of the above property by September 1 , 1986 with blacktop paving with a thickened edge and no concrete curb. The lessee shall at its sole Dost and expense restore the westerly portion of the property to the condition it was in prior to use under the temporary parking easement plus provide a twenty foot wide planting strip on the north and south boundaries of the property. 5. The lessee additionally will be responsible for the maintenance of the lease property and assuae all liability connected with the use of the property. 6. The lessee's option on the property automatically expires after May 31, 1988. 7. There will be no extension for the above option by any legal means without the mutual agreement of both parties. The above lease should be accoenlenied by a cover letter which responds to the concerns expressed by Erick Anderson in his letter to Virgil Herrick dated May 1, 1986, that is, upon receipt of signed lease agreement and payments for June and July of 1986, the funds of approximately $53,000 will be returned. JLR/dm • Nf-86-161 1C THIS INDENTURE, made in duplicate this 30th day of July, 1986 , by and between The Housing and Redevlopment Authority in and for the City of Fridley, Minnesota, hereinafter designated and referred to as lessor and Columbia Park Properties, hereinafter designated and referred to as tenant, WITNESSETH: THAT said lessor in consideration of the rents and covenants hereinafter mentioned, to be paid and performed by said tenant, does hereby demise, lease and let unto the said tenant, and the said tenant does hereby hire and take from the said lessor, the following described pre- mises situated in the City of Fridley, County of Anoka, State of Minnesota to wit: The easterly 89 feet of Lot 2 , Block 2 , Fridley Plaza Center, Anoka County, Minnesota. Said tenant agrees to pave any portion or all of the above property by September 1, 1986 with blacktop paving with a thickened edge and no concrete curb. Said tenant shall at its sole cost and expense restore the westerly por- tion of the property to the condition it was in prior to use under the temporary parking easement plus provide a twenty foot wide planting strip on the north and south boundaries of the property. That said tenant will be responsible for the maintenance of said premises and assume all liability connected with the use of said premises, without any liabi- lity or obligation on the part of said lessor of making any alterations, improvements or repairs of any kind on or about said premises, for the term of from and after the 1st day of June, 1986 , to the 31st day of May, 1988 , both dates inclu- sive, for the following purposes and for no other purposes, to-wit: Parking And the said tenant agrees to and with said lessor to pay the lessor as rent for the above mentioned premises the sum of Thirty Thousand Dollars ( $30 ,000 .00 ) in monthly payments of One Thousand Two Hundred Fifty Dollars ( $1 ,250 .00 ) , payable in advance on the first day of each and every month for and during the full term of this lease, at the office of the Director of Finance, City of Fridley, 6431 University Avenue Northeast, Fridley, Minnesota 55432 . Tenant shall not erect or permit to be erected on said premises , any signs on the premises without the written con- sent of lessor endorsed hereon. The tenant agrees that he will not sublet the demised premises , or any part thereof , and will not assign this lease or any interest therein, nor permit such lease to become transferred by operation of law or otherwise, and that no act or acts will be done or suffered whereby the same may be or become sublet or assigned in whole or in 1D part, unless the written consent of the lessor endorsed thereon shall be first obtained in each and every case of underletting or assignment, as they shall from time to time occur or be desired, and that nothing whatever shall be held - to be a waiver of or supersede the necessity of such endor- sement. Any assignment, sale in bankruptcy or insolvency of the lessee may, at the option of the lessor, be considered an assignment within the meaning of this lease and as a breach of the covenants hereof . The tenant further agrees that the lessor shall not be liable for any damage, either to person or persons or pro- perty or the loss of property sustained by the tenant, or by any other person or persons due to the demised premises due to the happening of any accident, or due to any act or neglect of the tenant, or any tenant or occupant of said building, or of any other person, persons or corporations . The tenant assumes all liability and obligation on account of all damages on account of the matters and things above referred to, and agrees to save the lessor harmless thereon and therefrom, and to indemnify the lessor an account thereof. The tenant further covenants and agrees at its own expense to observe and keep all regulations and requirements of the City of Fridley or other public authorities in force at the time of the taking possession by the tenant of the demised premises or which may thereafter be made regarding the condition and conduct of said demised premises, any part thereof . It is understood and agreed with respect to all altera- tions and repairs, improvements or alterations to said demised premises , or any part thereof, which shall only be with the written consent of the lessor, that tenant shall and will in each instance save said lessor and said premises forever harmless and free from all costs, damages, loss and liability of every kind and character which may be claimed, asserted or charged, including liability to adjacent owners based upon the acts of negligence of said tenants or their agents, contractors or employees, or upon the negligence of any other person or persons in or about said premises or upon the failure of any or either of them to observe and comply with the requirement of the law or with the regula- tions of the authorities in the said City of Fridley and will preserve and hold the lessor and said premises forever free and clear from liens for labor and material furnished. lE That said tenants Option, a copy of which is attached as Exhibit A, on the premises described herein will automati- cally expire on May 31, 1988 unless prior to said date the tenant has fully performed its obligations under paragraph 6 of the Option and additionally has commenced actual construction of the expansion. Tenant, upon leaving the premises hereby leases, shall at his own expense remove all rubbish and refuse, and upon tenant' s failure so to do, lessor may immediately without further notice to tenant do the same at tenant' s expense, which the tenant shall immediately pay upon receipt of a bill for same from lessor. The tenant agrees that no assent, express or implied, by the lessor to any breach of any of the tenant' s covenants or agreements shall be deemed or taken to be a waiver of any succeeding breach of such covenant. Each of the covenants, provisions , terms and agreements of this lease shall inure to the benefit of and shall be obligatory upon the respective heirs, executors, admi- nistratros, successors and assigns of the lessor and tenant respectively. There are no understandings or agreements outside of this lease. IN TESTIMONY WHEREOF the lessor and tenant have hereunto set their hands and seals the day and year first written. We, the tenant, hereby acknowledge that at the time of making and delivery of this lease, the Lessor delivered to us a full, true and complete copy of same. THE H. s .ING AND REDEVELO T AUTHORITY IN AND (Q'/THE CIT1-)OF EY, MINNESOTA By '` :Z;., -.-e L , .�/' hairman By Pit...AL r . era.....‘4,L Director LESSOR COLUMBIA PARK PROPERTIES r BY ic'ef /,'"(C- Z 7(110 TENANT 1F STATE OF MINNESOTA) ) ss. COUNTY OF Ap A ) t1 The foregoing instrument was acknowledged before me this day of ./0L_v , 19 'i, , by Lawrence R. Commers, the Chairman of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a Corporation under the laws of Minnesota, on behalf o ethe Corpor ' t� • �t Y/4 C CLYDE Y. MORAVETZ .,..,At% /UIY Mit—MIIUU . :/ ANOKA COUNTY •p ier Wise len.07,1!110 • ■ STATE OF MINNESOTA) ss . COUNTY OF (i-7i.r-t> t,. ) The foregoing instrument was acknowledged before me this -3,-, -(1• day of z.,i" - , 19 S7( , by Nasim M. Qureshi, the Director ofJthe�Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a Corporation under the laws of Minnesota, on behalf of the/� ff Corporation./ 7l Mh,^JJ�A�,,V\^n'N,^%^;�J,WJ,.1Nv�,^n1/V,M t IL'"•'' V ' _ _ , J. MULCF,''Y 0 �%! A: - ►`;; GTA ..., R , ,::Y COUNTY Myiommissk:1 txyaesuct.07,1988 xvwvwvvw STATE OF MINNESOTA) ) ss . COUNTY OF ) The fore of - ' nstrument was acknowledged before me this� � slcx�c' ,4er d day ofg , 190 , by teary A_ 1 the -: -, - - - •= • - 1: • - - of Columbia Park Properties , a Cor.'orti J untrer the laws of Minnesota, on behalf of the Corporation. ,,. R M•A.N�fJ/��/�/�J' r Al MO'AEY -LIC M -A '..:4n'l0Kn cOUN'V i1I1 MY Comm.Expires?:;.70.1988 ■VWWVWVVVV`'/VVWwWJWVVVWVVVW a THIS INSTRUMENT WAS DRAFTED BY: HERRICK & NEWMAN, P.A. 6279 University Avenue Northeast Fridley, MN 55432 1G • EXHIBIT "A" SCHEDULE F • OPTION AGREEMENT • THIS ASREE71ETTT, made this /. ilgi day of ��Pri , 1982, by and between THE HOUSING AND REDEVELOPMENT AUTHORI'T'Y IN AND FUR THE CITY OF FR I DLEY, a public body corporate and politic ("Optionor") , and COLUMBIA PARK PROPERTIES, a Minnesota Partnership ("Optionee") . WHEREAS, Optionor and Optionee have entered into a certain Contract for Private Redevelopment of even date herewith, including this Schedule F and various other schedules (the "Redevelopment Contract") , providing for the conveyance of certain property ("The Redevelopment Property") in the City of Fridley from Optionor to Optionee and the performance of various public and private improvements thereto; and WHEREAS, Optionee may wish further to develop the Redevelopment Property with an expansion to its medical clinic building to be constructed on the Redevelopment Property beyond the Minimum Improvements required in the Redevelopment Contract (the "Expansion") ; and WHEREAS, in the event of such Expansion, Optionor is willing to designate certain additional land adjacent to the Redevelopment Property and sell the same to Optionee for use as parking areas to serve the Expansion (such additional land to be designated by Optionor herein referred to as the "Option Property") ; and WHEREAS, Optionee desires and Optioner is willing to grant to Optionee an option to purchase the Option Property; WITNESSETH: 1. Grant of Option: In consideration of the sum of Ten Thousand Dollars ($10,000) paid to Optionor pursuant to Section 3.6 of the Redevelopment Contract and other good and valuable consideration, receipt of which is hereby acknowledged, Optioner hereby gives and grants to Optionee, its successors and assigns, the right and option of purchase, upon the terms and conditions contained hereinbelow, the Option Property. 2. Term of Option: The term of this option shall expire at 5:00 p.m. , Central Time, January 2, 1986 3. Exercise of Option: This option may be exercised by written notice thereof to Optionor in the manner specified herein and the payment of earnest money in the amount of Fifteen Thousand Dollars ($15,000) . If this option is exercised by trailed notice, this option shall be deemed to have been timely exercised if such notice is placed in the United States mail no 1H • later than the expiration of this option. Optionee's notice of exercise of this option shall contain a statement that Optionee has decided to construct an Expansion and stating the proposed number of square feet of gross floor area to be contained in the Expansion. Within 60 days after notice of exercise of this option is given, Optionor shall designate additional land sufficient for parking areas including one 350-square-foot parking stall for every 200 square feet of gross floor area to be contained in the Expansion to be constructed on the Redevelopment Property located entirely within 200 feet of the perimeter of the Expansion to be constructed on the Redevelopment Property. 4. Purchase Price: The Purchase Price shall be $ 1.45 per net square foot of the Option Property, to be determined by survey as provided below. The number of net square feet shall equal the total square feet less the number of square feet in any portion falling within rights-of-way or easements for public or private roads, streets, alleys or railroads, and less the number of square feet which are unuseable for either improvements or parking by reason of other easements or encumbrances except as required to meet the conditions of the City Code. The number of net square feet shall be determined as of the time of closing of the purchase of the Option Property pursuant to this Agreement. The Purchase Price shall be adjusted as of each anniversary of the date of this Agreement to an amount determined by multiplying the initial Purchase Price per net square foot stated above times the Consumer's Price Index for All Urban Consumers for Minneapolis, Minnesota, All Items" (the "CPI") for the month of November immediately preceding the effective date of the adjustment, divided by the CPI for the month of November, 1981; provided that no adjustment pursuant to this paragraph shall be greater than 12% nor less than 8%. Should the CPI be discontinued, or discontinued for Minneapolis, Minnesota, a similar figure representative of an overall price index average shall be used or the Consumer's Price Index for All Urban Consumers, 'All Items" for the United States shall be used. The Purchase Price shall equal the Purchase Price as adjusted pursuant to this paragraph in effect on the date of exercise of this option. The Optionor shall pay the Optionee, immediately upon occupancy of any Expansion constructed the flurProperty, an amount du al to the following percentages othe Phaseicactuallypaby Optionee for the Option Property: • lI • Occupancy on or Percentage of Purchase • before January 1: Price to be Repaid: 1983 33.3% 1984 26.7% 1985 20.0% 1986 13.3% 1987 6.7% 5. Survey:: A survey of the Option Property prepared by a duly licensed Minnesota land surveyor shall be provided by Optionor within thirty (30) days after exercise of this option. The survey shall be certified to Optionee and Optionor and shall show the location of all present improvements, highways, streets, roads, water courses, easements and rights-of-way thereon or adjacent thereto, and shall show all encroachments, conflicts and protrusions, and shall set forth the number of total square feet and the number of net square feet as defined above, together with the legal description thereof. 6. Terms of Purchase; Closing: The closing of the purchase by Optionee of the Option Property shall be within 90 days after Optionee submits to the Optionor evidence of financing for the construction of the Expansion in the manner provided in Section 7.1 of the Redevelopment Contract. Optionor shall provide evidence of title and Optionee shall have the right to examine such evidence in the manner provided in Section 3.5 of the Redevelopment Contract. Conveyance shall be subject to the Optionor's right to approve construction plans for the Expansion in the manner provided in Section 4.2 of the Redevelopment Contract, except the Optionor shall not withhold consent to the construction on the Redevelopment Property of an expansion or addition to the Optionee's medical clinic facility of not more than 30,000 square feet being similar in design and aesthetic appearance to the Minimum Improvements constructed on the Redevelopment Property. At closing, Optionor shall convey the Option Property to Optioneebqutc�thedformand of aptionee cashierSsall checkyonhea balance of thepurchaseprice local bank. 7. Rights of Parties During Option Period: To the extent Optionor has the right to grant such privilege, Optionee and its agents and contractors shall have the right to make investigations, surveys, soil tests and borings on the Option Property at any time during the term of this option or after this option has been exercised. Optionee shall indemnify, defend and hold harmless the Optionor frail any lien or claims arising from said investigations, surveys, soil tests and borings. 1J • • . 8. Application of Option Payment: Except as provided in the Redevelopment Contract, all amounts paid by Optionee pursuant to this Agreement are not refundable and if this option is not exercised shall become the property of Optionor. However, amounts paid pursuant to this Agreement (including the $10,000 payment pursuant to the Redevelopment Contract) shall be applied against the Purchase Price upon closing. 9. Notices: All notices and deliveries required or permitted by this Agreement shall be given in the manner provided in the Redevelopment Contract. IN WITNESS WHEREOF, the parties have caused this instrument to be executed as of the date first above written. 'ITi£ 'SUS AND '.. DEVELOZMENT AUTHORITY IN • n •.: - CI i •ID , MINNESOTA • • 41" /1 j ecutive Director OPTIONOR COLUMBIA PARK PROPERTIES 'Effrr� By d/. zerAr •• ONEE STATE OF MINNESOTA ) )ss. COUNTY OF ANOKA ) foreaoing instrument was acknowledged before me, this /d ' - day Q the f /I 1982, by �. lle�[E &D?tt Cha nnan and JERROLD BOARDMAN the Executive Director of THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY, a body corporate and politic, on behalf thereof. 4„„t- Notary Public • G HUNT PUaL!C—MINNESO1A • •:!F:t: COUNTY v. Jw 11,1605 1K • STATE OF MITNE50TA ) )ss. COUNTY OF thi /� The foregoing instrument was acknowl-••ed •-fore fier . day of 0g� 1982, by . 1• u =, . �_1 - • 7 / a partnit of COLUMBIA PARK PROPERTIES, a Minnesota Partne - ip, on behalf of the partnership. .47 ✓ Notary Public • • > i • • 2 HERRICK & NEWMAN, P.A. ATTORNEYS AT LAW VIRGIL C.HERRICK 6279 UNIVERSITY AVENUE N.E. OAVIO P.NEWMAN FRIOLEY.MINNESOTA 55432 JAMES E.SCNMECKPEPER 571-3850 August 4, 1986 Robert T. Montague, Jr. ROBINS, ZELLE, LARSON & KAPLAN 1800 International Center 900 Second Avenue South Minneapolis, Minnesota 55402 RE: Fridley Plaza Associates/Louis Lundgren Dear Mr. Montague: As you are aware, the Fridley A.R.A. entered into a Contract for Private Development with your client on June 12 , 1986 . Under the terms of this Contract, Section 10 .9 provides that if the provisions of Section 3 .1 ( b) have not been satisfied. on or before August 1, 1986 , then the Agreement automatically terminates. I have reviewed certain information which Mr. Lundgren pro- vided to the HRA on the August 1, 1986 and it is my opinion that they do not satisfy the requirements of Section 3 .1 (b) in that they do not indicate a committment for permanent financing . The letters which Mr. Lundgren has provided to the City indicate that certain lenders are willing to explore the possibility of entering into a formal committ- ment with him at a later date. Consequently, the under- signed is of the opinion that this Agreement has been terminated due to the failure of the Fridley Plaza Associates to provide the required evidence of financing. As you also know, Section 4. 5 of this Agreement requires a $200 , 000 .00 Letter of Credit which the Authority is authorized to draw upon in the Event of Default. As I have indicated earlier, it has been the desire of the HRA to try to work with your client in attempting to bring this project to fruition. Solely for this reason I am authorized to advise you that the HRA is willing to give your client an additional sixty (60) day period in which to obtain the unequivocal committment for permanent financing for this project as provided under Section 3 .1(b) . In the event that this condition is not satisfied on or before October 1, 1986 then after this date your client waives all defenses against the Authority for drawing upon the Letter of Credit. Additionally, during this intervening sixty (60 ) day period the Authority shall have full authority to negotiate with other Developers about this site. The Authority will agree that negotiations with other Developers will be conditioned upon your client' s inability to comply with the conditions contained in Section 3 .1 (b) . 2A I am sure that you can appreciate the HRA's frustration with Mr. Lundgren's inablility to provide evidence of financing. I believe that the staff has been more than obliging yet after six months Mr. Lundgren has not obtained the necessary financing. The HRA is willing to give him an additional sixty (60 ) day period provided that during this period the HRA can take the necessary steps to begin to arrange for a substitute developer in the event that Mr. Lundgren cannot arrange the necessary financing. If even with this additional period Mr. Lundgren is unable to obtain an unconditional committment for permanent financing, then effective October 2, 1986 the Authority will be free to draw upon the Letter of Credit. Although it is my opinion that the Development Agreement is now terminated and that the HRA could immediately draw upon the Letter of Credit, in order to avoid any question about the propriety of the HRA entering into negotiations with a substitute developer I would ask that you have Mr. Lundgren indicate his approval to this proposal by signing the bottom of this letter and having the original returned to my office by 5 : 00 P.M. , Friday, August 8 , 1986 . If this consent is not obtained within this time, then I have been instructed to prepare the necessary paper work in order to draw upon the Latter of Credit. For your information I will be out of town and unreachable on August 7th and 8th. Consequently, if you need to contact me you should do so before Thursday. incer ly yours, , ,,i_l . David P. ewman DPN:JEB cc: Louis R. Lundgren I Louis R. Lundgren, the general partner of Fridley Plaza Associates, a Limited Partnership agree to the above terms.Ilk )9 400 / O Dated: $� 1 -I G ite.�.., • Climii`:. ou' s R. Lun.g en / 3 LAW OFFICES ESTES PARSI N EN SI LEVY A PROFESSIONAL ASSOCIATION 100 SOUTH FIFTH STREET S.TODD RAPP JOHN D.PARSINEN SUITE 1100 HOWARD A ROSIN R.D. RTAS MINNEAPOLIS,MINNESOTA 55402 DAVIDR.M • C*I CRT A. ULT JEFF ROSS ERIC S•S OSSCS TELEPHONE DAVID A.ORENSTEIN JACKOOAI. TIONSRO 10121 »>-2111 LEON 1.J.[INSERO BRUCE S.JAMES DANIEL J.SIE RSOORI FACSIMILE or couwS[L E.SURKE HINDS 10121 333-07120 August 4, 1986 Mr. Jock Robinson Community Development Director Housing and Redevelopment Authority City of Fridley Civic Center 6431 University Avenue N.E. Fridley, Minnesota 55432 RE: Rice Plaza Shopping Center Dear Mr. Robinson: As you are aware, our firm represents Rice Plaza Partnership which owns Rice Plaza Shopping Center in the City of Fridley. I attended both the June and July meetings of the Housing and Redevelopment Authority, at which time I brought to the attention of the HRA the serious financial and business problems which had been created for Rice Plaza by reason of the HRA's various development plans and development agreements with respect thereto. At the June meeting I requested that the HRA consider going forward with a joint plan to acquire the entire Rice Plaza site in conjunction with Anoka County's plans for acquiring a portion thereof in connection with widening Mississippi Street at this time, regardless of the status of the development plans of Mr. Lundgren. In response to our request and as a result of staff discussions between the HRA and the Anoka County Highway Department, it was determined that Anoka County's appraiser should expand their appraisal of the Rice Plaza parcel to encompass the entire parcel for purposes of at least preliminarily determining the value thereof as a prelude to the HRA's consideration of whether or not to go forward and acquire the entire parcel at this time. As I understood the discussion at the June meeting, the HRA could not indicate d whether not it wouballpad be rk figure. It was hopeding to go r that thoseuire the numbersparcel at would be this time available without at least p g for the meeting in July. Unfortunately, the valuation by Anoka County's appraiser was not completed in time for the July meeting of the HRA. I again attended the July HRA meeting, at which time I reaffirmed the request made at the June meeting for the HRA to consider going forward with acquisition of the entire parcel at this time. In response to that request, the individual arcel at this ers of the It timRA e, ndicatethat they were not but that they could not evaluoatethat lcally opposed to acquiring thea pdecisionunt until they had a ballpark value for consideration. It is my understanding that Anoka County's appraiser has completed his appraisal and provided a copy of same to the Anoka County Highway Department staff. It is also 3A ESTES PARSINEN & LEVY August 4, 1986 Page 2 my understanding that a formal copy of this appraisal has not been provided to you, but Dave Newman has advised me that the following gross valuation numbers were extracted from the appraisal and provided to you: Land and Buildings $946,600 Fixtures Vacant Store 2,960 Hong Kong Kitchen 16,711 Rapid Print 14,917 Ron's Barber Shop 31,489 Cinnamon Skin 31,714 Norge Cleaners 32,071 Ronnie's Pub 17,241 Metz Baking 2,148 We have not been provided with a copy of the appraisal and are not in a position to respond to it nor can we indicate our approval or disapproval of those numbers without having an opportunity to review and fully evaluate it. However, we do feel that it serves its intended purpose of providing the HRA with a preliminary number to use in connection with deciding whether or not to go forward with an acquisition of the parcel at this time. Based on my discussions with Dave Newman, the County is prepared to participate in an acquisition of the entire parcel with respect to that portion thereof which it requires for its needs, assuming that the HRA is similarly prepared to go forward with an acquisition of the entire parcel. We respectfully request that at the HRA's meeting on August 14, 1986, a formal resolution be adopted by the HRA authorizing the staff to negotiate a purchase of the entire parcel at this time. This request is independent of and unrelated to the status of any development plans or development agreement between Mr. Lundgren and the HRA. If Mr. Lundgren has or will perform under his agreements with the HRA, then the HRA will need to go forward with acquisition of the property. If the development agreement with Mr. Lundgren has or may be terminated, then it is our understanding that the BRA intends to once again look for a new developer for the subject property which will further magn:fy the prob'ems created for us by the various BRA development pians over the last five years. This request on behalf of Rice Plaza should in no way be coupled with consideration of the status of the development agreement with Mr. Lundgren as the two matters or issues are separate and distinct. I would appreciate your putting this matter on the agenda for the HRA meeting on August 14, 1986, and I will appear at that meeting on behalf of Rice Plaza. Very truly yours, Robert A. Levy krh/RAL-30 cc: David Newman, Esq. Fred P. Levy James Ridgway 3B CITY OF FRIILEY HOUSING AND REDEVELOPMENT AIJ7.HCRITY MEMORANDUM 110: NAS IM M. QURESHI, HRA DIRECTOR FROM: SAMANZHA ORIXJNO, MANPG EMENT ASSISTANT SUBJECT: MARKET VALUES CN RICE PLAZA IRATE: AUGUST 7, 1986 As per your request, please find listed below the 1985 payable 1986 and 1986 payable 1987 market values for Fred Levy' s Rice Plaza Shopping Center at 248 Mississippi Street (Lot 1, Block 1, Sylvan Hills, Plat 7) . These are the most current estimates of market value on the City Assessor's records. Year Land Building Total '85/'86 $253,300 $157,000 $410,300 '86/'87 351,400 210,600 562,000 Assessor' s records indicate that the land is 202,050 square feet, and the building is 10,875 square feet. `T HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION RELATING TO REDEVELOPMENT PROJECT NO. 1 AND AMENDING THE MODIFIED REDEVELOPMENT PLAN RELATING THERETO PURSUANT TO THE PROVI- SIONS OF MINNNESOTA STATUTES, SECTIONS 462 . 411 TO 462.716, INCLUSIVE, AS AMENDED; AND AMENDING THE TAX INCREMENT FINANCING PLANS RELATING TO TAX INCREMENT FINANCING DISTRICTS NO. 2 THROUGH NO. 6 WITHIN THE PROJECT AREA AND ESTABLISHING TAX INCREMENT FINANCING DIS- TRICT NOS. 7 AND 8 WITHIN THE PROJECT AREA AND ADOPTING THE TAX INCREMENT FINANCING PLANS RELATING THERETO, PURSUANT TO THE PROVISIONS OF MINNESOTA STATUTES, SECTIONS 273.71 TO 273.78, INCLUSIVE, AS AMENDED. 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, that the Authority amend the Modified Redevelopment Plan relating thereto and established pursuant to and in accordance with Minnesota Statutes, Section 462 . 411 to 462 .716 , inclusive, as amended, amend the Tax Increment_ Financing Plans relating to. Tax Increment Financing Districts No. 2 through No. 6 to reflect the revised project costs of the Modified Redevelopment Plan of Redevelopment Project No. 1, and establish Tax Increment Financing District Nos. 7 and 8 and adopt the Tax Increment Financing Plans relating thereto pursuant to and in accordance with Minnesota Statutes, Sections 273 .71 to 273.78, inclusive, as amended. 1 .02. This Authority has investigated the facts and has caused to be prepared with respect thereto, the proposed amendment of the Modified Redevelopment Plan defining therein the public improvements to be made within Redevelopment Project No. 1. This Authority has also caused to be pre- 4A pared, and has investigated the facts with respect to the establishment of proposed Tax Increment Financing District Nos. 7 and 8 as stated in the proposed Tax Increment Financing Plans relating thereto. 1.03. The Authority has performed all actions required by law to be performed prior to the amendment of the Modified Redevelopment Plan, the amendment of the Tax Increment Financing Plans relating to Tax Increment Financing Districts No. 2 through No. 6, and the establishment of Tax Increment Financing District Nos. 7 and 8 and the adoption of the pro- posed Tax Increment Financing Plans relating thereto and has requested the written opinion thereon of the City ' s Planning Commission. 1.04. The Authority hereby determines that it is neces- sary and in the best interest of the City at this time to approve amendment of the Modified Redevelopment Plan, approve the amendment of the Tax Increment Financing Plans relating to Tax Increment Financing Districts No. 2 through 6 , approve establishment of Tax Increment Financing District Nos . 7 and 8 and adoption of the proposed Tax Increment Financing Plans relating thereto, and to request that the Fridley City Council hold a public hearing relating to the above-stated matters. Section 2 . Approval of Amendment of Tax Increment Fi- nancing Plans Relating to Tax Increment Financing Districts No. 2 through No. 6. Subject to the finding, determination and approval of the amendment of the Tax Increment Financing Plans relating to Tax Increment Financing Districts No. 2 through No. 6 by the Council, the proposed amendments of the Tax Increment Fi- nancing Plans relating to Tax Increment Financing Districts No. 2 through No. 6 are hereby approved by the Commissioners of the Authority. Section 3. Approval of Tax Increment Financing District Nos. 7 and 8 . Subject to the finding, determination, and approval of the establishment of Tax Increment Financing District Nos . 7 and 8 by the Council, proposed Tax Increment Financing Dis- trict Nos. 7 and 8 within Redevelopment Project No. 1 are hereby approved by the Commissioners of the Authority. Section 4. Approval of Amendment of Modified Redevelop- ment Plan and Establishment of Tax Increment Financing Plans . The proposed amendment of the Modified Redevelopment Plan for Redevelopment Project No. 1 and the establishment of the - 2 - 4B proposed Tax Increment Financing Plans for Tax Increment Financing District Nos. 7 and 8 (collectively referred to as the "Plans" ) , as presented to the Authority on this date, are hereby approved and adopted by the Authority and shall be forwarded to the Council with the request that the Council hold a public hearing thereon, as required by law. Section 5. Filing of Plans. The Authority shall cause the Plans, as amended and adopted, to be filed with the Minnesota Department of Energy and Economic Development. Section 6 . Certification of Assessed Value. Upon approval of the establishment of Tax Increment Fi- nancing District Nos. 7 and 8 and the adoption of the pro- posed Tax Increment Financing Plans relating thereto by the Council, the Authority shall request the County Auditor of Anoka County (the "County Auditor" ) to certify the original assessed value of the real property within Tax Increment Financing District Nos. 7 and 8, respectively, as described in the Tax Increment Financing Plans relating thereto, and each year hereafter to certify the amount by which the assessed value has increased or decreased from the original assessed value of Tax Increment Financing District Nos. 7 and 8. Dated: August 14, 1986. - 3 - 4C t PLANNING DIVISION MEMORANDUM CITY OF FRIDLEY MEND ZD: Samantha Orduno, Management Assistant MEND FROM: Jim Robinson, Planning CoordinatorJR,. MEM) DATE: August 7, 1986 REGARDING: Establishment of Tax Increment Finance District No. 7 and No. 8 On August 6, 1986 the Fridley Planning Commission reviewed a proposal to establish Tax Increment District No. 7 and Tax Increment District No. 8. The Planning Commission was informed of the general objectives of the HRA in establishing these districts as well as the types of districts being established and the proposed longevity of the districts. After reviewing the proposals, the Planning Commission unanimously approved a motion recommending the establishment of Tax Increment Finance District No. 7 for Winfield Development, and Tax Increrent Finance District No. 8 for Shorewood Inn. If you feel it is appropriate, this memo could be forwarded to the BRA so that they might be apprised of the Planning Commission's support toward these efforts. JLIVdm M-86-184 4D SECTION VIII . • TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 7 Subsection 8. 1. Statement of Objectives. See Section I, Subsection 1. 5. of the Modified Redevelopment Plan. Subsection 8. 2. The Modified Redevelopment Plan. See Section I, Subsections 1. 2. through 1.15. Subsection 8. 3. Parcels to be Included in Tax Increment Financing District No. 7 . See Exhibit VIII-A for the de- scription of property located in the City of Fridley which is to be included in Tax Increment Financing District No. 7 and Exhibit VIII-B for a boundary map thereof. Subsection 8. 4 . Parcels in Acquisition. Properties identified for acquisition will be acquired either by the City or the Authority as set forth in Section I , Subsection 1.8. of the Modified Redevelopment Plan hereof. Subsection 8. 5. Estimated Public Improvement Costs and Supportive Data. See Subsections 1.9 . and 1. 10 . of the Modified Redevelopment Plan for estimated costs associated with Redevelopment Project No. 1. Subsection 8.6. Scurces of Revenue. Public improvement costs, acquisition, relocation and site preparation costs and other costs outlined in Subsections 1.9 . and 1 . 10 . of the Modified Redevelopment Plan will be financed through the issuance of general obligation and/or revenue tax increment bonds to be repaid by the annual collection of tax incre- ments. Subsection 8.7 . Original Assessed Value. Pursuant to Section 273 .76, Subd. 1, of the Tax Increment Financing Act, the original assessed value as of January 2, 1986, for Tax Increment Financing District No. 7 is estimated to be $100 , 560 , based on the assessed value of all taxable real property within Tax Increment Financing District No. 7 . Pursuant to Section 273 .76 , Subds . 1 and 4, of . the Tax In- crement Financing Act, the County Auditor of Anoka County ( the "County Auditor" ) shall certify in each year the amount by which the original assessed value has increased or de- creased as a result in a change in tax-exempt property within Tax Increment Financing District No. 7 , reduction or enlargement of Tax Increment Financing District No. 7 or changes in connection with previously issued building permits . In any year in which the current assessed value of Tax Increment Financing District No. 7 declines below the 8 - 1 4E original assessed value, no assessed value will be captured and no tax increment will be payable to the Authority. Subsection 8.8. Estimated Captured Assessed Value. Pursuant to Section 273.74, Subd. 1, and ction on estimated7 .76, a Subd. 2, of the Tax Increment Fin 9 ASe captured assessed value in Tax Increment Financing District No. 7 when all development contemplated by the Contract (as defined in Section 8. 14 below) is completed will approximate $869,980 . This estimated captured assessed value is de- termined in the following manner: Estimated Assessed Value at completion $970 ,540 Original Assessed Value 1986 payable 1987 100 , 560 $869,980 Subsection 8.9 . T •e of Tax Increment Financin• Dis-nt f trict . Tax Increment Financing District Taxct . 7In is, pur su to Section 273.73, Subd. 10(a) ( 3) ent Financing Act a redevelopment district and as a redevelopment district is subject to the limitations of Subsection 8.10 . Subsection 8.10. Duration of Tax Increment Financin District No. 7 . Pursuant to Section 273.75, Subd. 1, of the Tax Increment Financing Act, the duration of Tax Increment Financing District No. 7 will beuptofirsnty-five ( 25) years from the date of receipt ofthein- cluding Thus, Tax Increment Financing District No. other any modifications for subsequent phases changes, would be terminated no later than December 31, 2013 . Subsection 8.11. Estimated Impact on Other Taxing Jurisdictions . The estimated impact of this Taxi Increment Financing District and Pronon all taxinurisctions i rs stated in reflected in the total project expenditue Subsections 1 .9 and 1' the indebtednessRincurredmthereforPlan, bonded including the maximum in Section 8 . 12 at the assumed interest rates provided below. However , as of the date of original aopion hereof , the Authority estimates that no more than 8 years tax increments from this Tax Increment Financing District will be needed for such purposes. ed- Subsection 8.12• Em273a74�►oSubd unt flBoofethenTaxtln- ness . Pursuant to Section crement Financing Act, general obligation or revenue tax increment bonds may be used as required to amortize the costs identified in Section I , Subsections 1.9. and 1 .10 . 8 - 2 4F Bond sales will be based on availability of tax increment . It is contemplated that all bonds will not be issued at one time but as they are needed, at effective interest rates estimated to range between 6. 50% and 10 . 00% per annum. Subsection 8.13. Tax Increment Financing Account for Tax Increment Financing District No. 7 . The tax increment received with respect to Tax Increment Financing District No. 7 will be segregated by the Authority in a special account or accounts (the "Tax Increment Account" ) on its official books and records or as otherwise established by resolution of the City to be held for the benefit of owners of Tax Increment Bonds. Subsection 8.14. Land Disposition and Redevelopers ' Requirements. All redevelopers or developers will be re- quired by contractual agreement to observe the building requirements and zoning requirements of the City, and such other requirements as may be established by the City Coun- cil. Land disposition parcels shall be made available under separate cover as they are determined by the Authority. The Authority proposes to consumate a certain Contract for Private Development (the "Contract" ) , with Winfield Developments, Inc. , a Minnesota corporation, concerning the public and private development of the property within Tax Increment Financing District No. 7 . Subsection 8.15. Modification of Tax Increment Financing District No. 7 . As of September 22, 1986 , the date of approval thereof, there have been no modifications to Tax Increment Financing District No. 7 . 8 - 3 yG EXHIBIT VIII A (LEGAL DESCRIPTION) LOT 4, BLOCK 1, PACO INDUSTRIAL PARK, EXCEPT FOR THE N 35 FEET LOT 5, BLOCK 1, PACO INDUSTRIAL PARK LOT 6, BLOCK 1, PACO INDUSTRIAL PARK VIII-A-I EXHIBIT VIII a till (GEOGRAPHIC LOCATIONS) r3R'fl AVE. w • 1i • _ ��t/ �1 f I.s ''� ��� i v s 4 i t whi►/.. 1 ...4 — dr— )4t 0 I(-.4, IV TY _ : W 4 p 4 3 , 2 -A , el !~ 1 • .., ,., -- Cl) VI W i .cx ` �'� �" . omm 3 • sr0 •u r :A.r.u� • 4' s a, Cn iCr 2 i. -- - ----\ IA Q 3 gr- r 1 �� (0017 ; c Z W ► d — — ... maw • • V1. ! I • V p Ir a) 106 ici - Cr (0010) .h ‘. li) 449 // u 04 .0., •< W I i I, 0, •• • • AAd•.ae ' lii'' 1114''"1N+�!i14 c f' "" 9 4414$1114.4414111.4;4111t 114!- 11• .. ' W f .Of /.s �c V _ 1 !11 111., ` �N�) - C Mitt: : 14141 l:11— • ' • .. X W 1!l 0 7 414 O s /0 ill -.s jo.i►/ �- VV I 'tilt .,►. -- 6t = V 111*+1411f iit ••tt41• i •tj "44.I,1:4+ a .,111111, . 1, - � s ' I',t111 o►•1i111il1k- ____-01� r� j 1: w- 1111111, 11111111110- - 'COMMERCE CIRCLE 4$Q. ".'' ,-.. _ '�� - ,..k d,�`l1: 1i111/1iii11i s • /44 id '"� .,fiSpe:111111/lillli1lW: /' ,#' ;t ? ' *Z .111111ii :+ i11411ii1.1.►'1/l/111111.. �) ( / r� •�;11111!4111 11111111114`- '� 6) •� '..114041$0114110141110C...r `� t T 14111114101111101111 -411011flat e141114114101—— ——4-———— — -1-1-4k-•–—— 7-7-1 r TRACT B I VIII—B-1 DARKENED AREA REPRES NTS BOUNDARY LINES OF TAX INCREMEN DISTRICT NO. 7 ' 4I SECTION IX. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 8 Subsection 9.1. Statement of Objectives. See Section I, Subsection 1.5. of the Modified Redevelopment Plan. Subsection 9. 2. The Modified Redevelopment Plan. See Section I, Subsections 1. 2. through 1.15. Subsection 9.3. Parcels to be Included in Tax Increment Financing District No. 8. See Exhibit IX-A for the de- scription of property located in the City of Fridley which is to be included in Tax Increment Financing District No. 8 and Exhibit IX-B for a boundary map thereof. Subsection 9. 4. Parcels in Acquisition. Properties identified for acquisition will be acquired either by the City or the Authority as set forth in Section I, Subsection 1.8. of the Modified Redevelopment Plan hereof. Subsection 9 . 5. Estimated Public Improvement Costs and Supportive Data. See Subsections 1.9 . and 1.10. of the Modified Redevelopment Plan for estimated costs associated with Redevelopment Project No. 1 . Subsection 9 .6. Sources of Revenue. Public improvement costs, acquisition, relocation and site preparation costs and other costs outlined in Subsections 1.9. and 1 .10 . of the Modified Redevelopment Plan will be financed through the issuance of general obligation and/or revenue tax increment bonds to be repaid by the annual collection of tax incre- ments . Subsection 9.7. Original Assessed Value. Pursuant to Section 273.76 , Subd. 1, of the Tax Increment Financing Act, the original assessed value as of January 2, 1986 , for Tax Increment Financing District No. 8 is estimated to be $208,924 , based on the assessed value of all taxable real property within Tax Increment Financing District No. 8 . Pursuant to Section 273 .76 , Subds . 1 and 4, of the Tax In- crement Financing Act, the County Auditor of Anoka County (the "County Auditor" ) shall certify in each year the amount by which the original assessed value has increased or de- creased as a result in a change in tax-exempt property within Tax Increment Financing District No. 8 , reduction or enlargement of Tax Increment Financing District No. 8 or changes in connection with previously issued building permits. In any year in which the current assessed value of Tax Increment Financing District No. 8 declines below the 9 - 1 4J • original assessed value, no assessed value will be captured and no tax increment will be payable to the Authority. Subsection 9.8. Estimated Captured Assessed Value. Pursuant to Section 273 .74, Subd. 1, and Section 273 .76 , Subd. 2, of the Tax Increment Financing Act, the estimated captured assessed value in Tax Increment Financing District No. 8 when all development contemplated by the Contract (as defined in Section 9.14 below) is completed will approximate $78,824 . This estimated captured assessed value is de- termined in the following manner : Estimated Assessed Value at completion $287 ,700 Original Assessed Value 1986 payable 1987 208,924 $ 78,824 Subsection 9 .9. Type of Tax Increment Financing Dis- trict. Tax Increment Financing District No. 8 is, pursuant to Section 273.73, Subd. 12, of the Tax Increment Financing Act, an economic development district and shall be subject to the limitations of Subsection 9 .10 . Subsection 9 .10. Duration of Tax Increment Financing District No. 8. Pursuant to Section 273.75, Subd. 1, of the Tax Increment Financing Act, the duration of Tax Increment Financing District No. 8 will be up to ten (10 ) years from the date of certification thereof. Since the Authority elects to receive no tax increments from Tax Increment Financing District No. 8 until the receipt of the 1988 payable 1989 taxes, it is estimated that Tax Increment Financing District No. 8, including any modifications for subsequent phases or other changes, would terminate on December 31, 1996. Subsection 9 . 11 . Estimated Impact on Other Taxing Jurisdictions. The estimated impact of this Tax Increment Financing District and Plan on all taxing jurisdictions is reflected in the total project expenditures stated in Subsections 1.9 and 1 .10 of the Modified Redevelopment Plan, including the maximum bonded indebtedness incurred therefor at the assumed interest rates provided in Section 9 . 12 below. Subsection 9.12. Estimated Amount of Bonded Indebted- ness. Pursuant to Section 273 .74 , Subd. 1 , of the Tax In- crement Financing Act, general obligation or revenue tax increment bonds may be used as required to amortize the costs identified in Section I, Subsections 1.9. and 1 .10 . Bond sales will be based on availability of tax increment . It is contemplated that all bonds will not be issued at one 9 - 2 41: time but as they are needed, at effective interest rates estimated to range between 6 . 50% and 10 .00% per annum. Subsection 9 .13 . Tax Increment Financing Account for Tax Increment Financing District No. 8. The tax increment received with respect to Tax Increment Financing District No. 8 will be segregated by the Authority in a special account or accounts (the "Tax Increment Account" ) on its official books and records or as otherwise established by resolution of the City to be held for the benefit of owners of Tax Increment Bonds. Subsection 9.14. Land Disposition and Redevelopers ' Requirements . All redevelopers or developers will be re- quired by contractual agreement to observe the building requirements and zoning requirements of the City, and such other requirements as may be established by the City Coun- cil. Land disposition parcels shall be made available under separate cover as they are determined by the Authority. The Authority proposes to consumate a certain Contract for Private Development (the "Contract" ) , with Shorewood, Inc. , a Minnesota corporation, concerning the public and private development of the property within Tax Increment Financing District No. 8. Subsection 9 .15. Modification of Tax Increment Financing District No. 8. As of September 22, 1986 , the date of approval thereof, there have been no modifications to Tax Increment Financing District No. 8. 9 - 3 EXHIBIT IX A 4L (LEGAL DESCRIPTION) That part of Lots 16 and 17, Auditor's Subdivision No. 88 included in that part of the southwest quarter of Section 13, Township 30, Range 24, Anoka - County, Minnesota described as follows: beginning at the intersection of the southeasterly right-of-way line of State Highway 65 and the south line of said southwest quarter of Section 13 thence east along the south line of said southwest quarter for a distance of 232.00 feet to a point, said point being 1294.80 feet more or less west of south quarter corner of said Section 13 thence north at right angles to the last described line for a distance of 285.54 feet thence northwesterly with a deflection angle to the left of 78 degrees, 54 minutes, 09 seconds for a distance of 163.61 feet more or less to the said southeasterly right-of-way line thence southwesterly along said southeasterly right-of-way to the point of beginning, subject to any and all easements of record. IX—A-1 . I . ' ' . - • .. .i. ..4.,\...(344. I Mil di. as I .::'.........„....t...• %Ft .11 ki.k •c:. , 'I ... s --‘•••0 'e:" I et L...,,, CO V1/4 Iii 1 t • 0 -.tin ADE..., t -. % 4 :.•-.. .. z ... ..., ,..."4 'CI • ... t 1' 0 - • L s . „ . . • • CP' , . *1/ i e .. % ..._.. .._.__......._s________,e r/ Or si•• 0) / • • • —. . . ..., ,.. 1— , me 6. . ...s .. Z • ..s.... "•• .. \ W .--4.. • .....• Z '... • 2 . w ..,4- .t., ... cc is ...;, •. --- ‘. kt• - 0 ...... --. . • , €..-- *. .. ii...a . - • . • "c . iv ., ... r S* 'N .... 1 4) •.2,„• is! s-: .: ),I • < ...... 0 Z - 1— , ---- ,'• .. .'l• ,,-,-4-..-----,, „,, .- / ., -1*/ '..c•I 10 ii • . ., ..a..... ... •ci, < • .1%,;., "III i 45 ''.\ ,.•'. ... .7...; W 03 C.) -. .* ......,.. 1 V NE • $ • . . --... ( X —I 1 ---. . -•- _.1 : . - -\.. % . . . .L., u\ > 1... 0 1 • C/) ? tb.k . ....• .. i • Vk` .. cc 1 , eN-i Cr •0 I 1.- 0 C3 \....Qrs ...- CO ........._...., •.. .. I `,..1., I k a‘ 't S • ...,....- CI = < 1 "•• '-' ''' .: 1._ ...k X cc 1 - J • t•3 • (i) D uj 0 1 a. 44 0 0 I . • ‘ N..- p st<4 i, co ... 4 I NA .. co --, 1-- ...... In , ce. . . ID •'? it_ -0' 1 ...._------ - I• .I .. III A fIttifittrnit# -It Z L .1 ..‘i• lr, II ..1 titiffieliMilet "''''.% W .1". IMMS00.01#0.14 Ft " -4011110414•Vilft,- N ....... -14.4M.Si•iWe:tile. . ..... 4141,44tit4ei1ftt1yet;,sic:.1,. W e----":"--0,0"----3r-,,--r- IT".'#I, _cee,,,..,7/,,,, ------.-------- _ ......___ -_ _______.- . . i/g412'-'7 /7 ./ —......:„.....4.....4.,......... __ ra---r4Pr:-% • .r- ..c.,/ "iii4".114/Phl •‘‘•WN k NV L‘, ....'... ........--L--22-- :"‘• 4.., I CI %I e-\ '-\ o", • ."'" . lilkiklai, I W • ,•••i t t q in , .... • ii 11 ill1 • • ,. " 4,.)CZI ;I. 0 . • : ty ,,,,__ ,_2(L___•.,, ,...,... . .... 0 IP,.1 4-‘, - •I -• • .-.. ..„ i J:: "`4..., 4 (-C4 Ith• `• - - ;is 1 , i 1 CC - .• I • ... 7A/ v7H.911./ .;1 , .4 ,i,„ : k:i3-1 . ... L._ %, .„.: Ki 4I , „. ... ...,, ,, .. . ,,,.. ,:,.. 1 . ..._ . t , • : . o t.2..) -. V. t N._% ... I, at„,) P•S 0 '•N, . ... ..• II! I . I so.) / \--I Ili -..,/,„ _._.: )...,;., .. I / / AA' •'. • x ...- 1 / i a c_• .. . ". •-o., / / . 7" DNIJANI#1 ___.___,..„.............../ 2 —i / 5 RESCLUTIC NO. HRA _-1986 A RESOLUTION APPROVING AND AUZIORIZIM ZAE EXECUTION OF A CONTRACT FOR PRIVATE DEVELOPMENT WITH WINFIELD DEVELOPMENT, INC. 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 pranote development of, open or undeveloped land and open or undeveloped land and in this connection is engaged in carrying 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 through the financing of certain costs of development in the Project Area. E. Winfield Development, Inc. , has presented the Authority with a proposal for the construction within the Project Area of a 55,000 square foot multi-tenant industrial/connnercial facility and a certain Contract for Private Redevelopment between the Authority and Winfield, Inc. (the "Development Contract") , stating the terms and conditions of such development and the Authority's responsibilities respecting the assistance thereof, has been presented to the Board for its consideration. F. The Development Contract provides that the HRA will assist Winfield Development, Inc. with soil correction costs not to exceed $30,000 to be paid upon completion of the agreed upon minimum improvements, the issuance by the City of the Certificate of Occupancy; and, a written report from a qualified licensed engineer stating that the soil correction costs incurred by the Redeveloper is equal to or exceeds $. //k28r990 2. The Board hereby approves the Contract for Private Development and hereby authorize the Chairman and Director to execute the same on behalf of the Authority, with such additions and modifications as those officers may dean necessary. 5A Page 2—Resolution No. HRA-=1986 3. Upon execution and delivery of the Contract for Private Development, the 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 such Agreement. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS _ LAY OF AUGUST, 1986. LARRY OJMMERS, CHAIRMAN HOUSING AND REDEVELOPMENT AUTHORITY ATTEST: NAS IM M. QURFSH I, DIRECTOR HWSING AND REDEVELOPMENT AUTHORITY TY 6 RESCLUTION NO. HRA —1986 A RESCL,UTION APPROVING AND AUTHORIZING THE EXECUTION OF A CONTRACT FUR PRIVATE DEVELOPMENT WITH SHOREWOOD, INC. 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 open or undeveloped land and in this connection is engaged in carrying 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 through the financing of certain costs of development in the Project Area. E. The Shorewood Inc. , has presented the Authority with a proposal for the construction within the Project Area of an expansion/renovation project and a certain Contract for Private Development between the Authority and Shorewood Inc. (the "Development Contract") , stating the terms and conditions of such development and the Authority ' s responsibilities respecting the assistance thereof, has been presented to the Board for its consideration. F. The Development Contract provides that the HRA will provide to Shorewood, Inc. a Second Mottgage on the Development Property in an amount not to exceed $70,000, payable after the following conditions have been completed to the satisfaction of the HRA: 1. Construction plans, indicating layout and proposed square footage, approved by the HRA. 2. All improvements completed to building, parking lot and landscappping according to the approved construction plans. 3. Certificate of Occupancy is issued by the City. 6A Page 2--Resolution No. HRA-=1986 2. The Board hereby approves the Contract for Private Development and hereby authorize the Chairman and Director to execute the same on behalf of the Authority, with such additions and modifications as those officers may deem necessary. 3. Upon execution and delivery of the Contract for Private Development, the 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 such Agreement. PASSED AND ADOPTED BY THE HUJSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRItLEY THIS _ DAY OF AUGUST, 1986. LARRY OOMMERS, CHAIRMAN HQJSING AND REDEVELOPMENT AUTHORITY ATTEST: NASIM M.- QURESHI, DIRECTOR HOUSING AND REDEVELOPMENT AUTHORITY JAMES P,LARKIN LARK IN, HOFFMAN, DALY & LINDGREN, LTD. PETER K.eecK ROBERT L HOFFMAN JEROM E H AHNKE JACK F.DAIv O.KENNETH LINDGREN ATTORNEYS AT LAW SHERRILL OMAN RURETICHGERALD L.SECS ANDREW W.DANIELSONR THOMAS BH.HUMP ARET E A.ANDERSON GERALD H.FRIEOELL THOMAS B. UM PH R[Y,JR. ROBERT B.wHITLocK 1500 NORTHWESTERN FINANCIAL CENTER 2000 PIPER JAFFRAY TOWER DAVID J.PEATJOHN S.LUNDOUIST ALLAN C.MULLIGAN ROBERT O.RENNER,JR. BOBCAT J.HENNESSEY 7900 XERXES AVENUE SOUTH 222 SOUTH NINTH STREET ANDREW J.MITCHELL RONALD P.FLETCHER '- COTTER. JAMES C.[RICKSON BLOOMINGTON, MINNESOTA 55431 MINNEAPOLIS,MINNESOTA 55402 JOHN A.CO KATHLEEN .OATES• EDWARD J.DRISCOLL BEATRICE A.ROTHWEILER AMEs P.MILEY TELEPHONE 16121 835-3800 TELEPHONE 16121 338-6610 PAUL B.PLUNKCTT GENE N.FULLER SUSAN R.BURNIO MT DAVID C.SC LLE ROREN TELECOPIER(6121 835-5102 TELECOPIER 16121 338-1002 AMY DARR GRAOY RICHARD J.KEENAN ALAN L.KILDOW JOHN O.FULLMER MARK E.DUVAL ROBERT E.DOYLE KATHLEEN M.PICOTTC NEWMAN FRANK 1.HARVEY LARRY A.KOCH RICHARD A.FORSCHLER PETER J.COYLE RICHARD A.NORDBTE CATHERINE BARNETT WILSON. CHARLES S.MODELL BloomingtonCHRISTOPHER BETTY A.MORNING STAR J.DIETiEN REPLY TO JEFFREY C.ANDERSON RICHARD 1.DIAMOND DANIEL L.BOWLES JOHN R.BEATTIE JONATHON G.LANDS JAMES M.STROTHER TODD M.VLATKOVICH LINDA H.FISHER • TIMOTHY J.MCMANUS THOMAS P.STOLTMAN RHONDA J.JORDHEIM STEVEN G.LEVIN JILL I.FRIEDERS FORREST D.NOWLIN MICHAEL C.JACKMAN JOHN E.DIEHL OF COUNSEL JON S.SWIERZEWSKI JOSEPH GITIS THOMAS J.FLYNN JOHN A.MCHUGH JAMES P.OUINN TODD I.FREEMAN YLSO ADMITTED IN STEPHEN B.SOLOMON WISCONSIN August 8 , 1986 Mr. Jock Robertson Director of Community Development City of Fridley 6431 University Avenue N.E. Fridley, Minnesota 55432 Mr. Jim Robinson City Planner Director of Community Development City of Fridley 6431 University Avenue N.E. Fridley, Minnesota 55432 Dear Jock and Jim: Charles Belgarde, Kenneth Belgarde and Harry Yaffe are proposing to develop 358 high-quality, high-amenity apartment homes on a 21 acre site ( the Site) generally located south of 85th Avenue Northeast, east of University Avenue, north of 83rd Avenue Northeast and west of the Springbrook Nature Center and Fridley Park area. Messrs. Belgarde and Yaffe have substantial experience in multifamily housing development extending over 20 years. All of the apartment homes will be three stories. The three story buildings will be constructed predominantly of high-quality, earth- tone brick exterior materials. Shingles and prefinished metal bands to match the windows will be utilized as accent design features. Garage and surface parking will be provided. Continuing maintenance of the apartment homes and landscaping will be assured by an on-site 7A LARKIN, HOFFMAN, DALY & LINDGRE\, LTD. Messrs. Robertson and Robinson August 8, 1986 Page 2 resident manager. Distinctive amenities include indoor and outdoor swimming pools with cabana, volleyball and tennis courts, park-like courtyards including picnic and barbeque areas, wooden playground structures and horseshoe pits, walking and jogging paths, dual purpose detention and amenity pond, extensive, mature landscaping and rock retaining walls, and sauna, whirlpool and other exercise facilities. The apartment homes are designed for families, as well as younger employees. A unit mix of approximately 67% two-bedroom units, 17% one bedroom and one bedroom/handicapped units and 15% three-bedroom units is currently proposed. Laundry rooms will be provided on each floor and the residents will enjoy the use of a party room and a community room. Individual units will be equipped with walk-in closets, special kitchen and bath features, and skylights in dining areas. All three- bedroom apartment homes and most two-bedroom homes will have a bath and three-quarter bath; the balance of the two-bedroom units will have a bath and a half. The Site is located in proximity to shopping, employment and public transportation. The 1990 Fridley Land Use Plan designates the Site a redevelopment district. The housing plan element of the Fridley Comprehensive Plan ( the Comprehensive Plan) indicates that construction of additional housing units, including new multifamily housing, will be needed to meet the needs of city residents by 1990 . The Comprehensive Plan also encourages the use of land write-downs and tax increment financing where it is in the public interest, to promote new construction of multifamily housing (Fridley Comprehensive Plan p. 3-5 ) . City housing policy also encourages petitions for residential rezoning of industrial and commercial properties adjacent to parkland and other residential neighborhoods as a means of facilitating development of alternative housing types in the community. Consistent with this policy, the developer will be requesting a rezoning of the Site from M-2 (Heavy Industrial District) to R-3 (General Multiple Dwelling District) . The developers are in the process of working with city staff on development of site and building plans for the proposed residential uses on the Site. Several factors will be considered in more detailed site planning, building orientation and structural design of the apartment homes. These factors will include: the location and boundaries of the 21 acre Site; existing characteristics of the Site, including restrictive soils, and topography and vegetation; existing and proposed land uses in the vicinity of the Site, including the Springbrook Nature Center and Fridley Park to the west and undeveloped commercial properties to the north and east; the developer' s objective of developing high-quality, high-amenity apartment homes compatible with the surrounding area; the Comprehensive Plan and housing policies 7B LARKI\, HOFFMAN, DALY & LINDGRE\, LTD. Messrs. Robertson and Robinson August 8 , 1986 Page 3 that encourage provision of alternative housing types; the effect of the proposed apartment homes on the visual environment of the area, including provision of a suitable buffer between the adjacent parkland on the west and future commercial development on the east; relationship of the development' s access and internal vehicular circulation to city transportation planning for the surrounding area; provision of a variety of active and passive private recreational facilities and open space; and protection of water quality and provision of on-site detention ponding consistent with city stormwater management planning and Six Cities Watershed District standards. In order to make this project economically feasible, financial assistance from the City of Fridley is necessary. Total estimated costs of the project range from $17 ,759 ,500 to $18 ,357 ,500 , as shown on Schedule A. Schedule A also sets out the anticipated sources of amounts needed for the project. Schedule A assumes the use of housing revenue bonds in the sum of $15,000 ,000 . Equity from the developers, at 10% of project costs, will be $1 ,776 ,000 to $1 ,836 ,000 . This leaves a gap in total project costs of $983 ,500 to $1 ,521 , 500 . Schedule B shows the projected rents for the units and the total income the -developers estimate will be received on an annual basis from the project. Schedule C shows the cash flow pro forma for the project. The amount of the $15 ,000 ,000 mortgage was obtained assuming a 9-1/2% interest rate of 30 years and further assuming that debt service coverage of 1 . 1 would be required by the lender. Schedule C demonstrates that the maximum debt that could be serviced out of cash flow for this project would be approximately $15 ,000 ,000 . Schedule D is an analysis of the land cost per unit, assuming a 358 unit project. The cost per unit, including the purchase price, storm sewer assessment, and soil correction is $6 ,332 . This project can support land costs of approximately $3 ,000 per unit, based on estimated rents. Schedule D shows that the gap between the land cost supportable by this project and the actual land cost is approximately $1 ,200 ,000 . The difference between these two numbers is due largely to excessive soil corrections required on the Site. The reasons for the soil correction work and the estimated costs of that work are set forth in letters from Harry S. Johnson Companies, Inc. and Subterranean Engineering Corporation attached as Schedule E. We are requesting, on behalf of the developers, that the City of Fridley assist in resolving the gap between the amounts available for the project through housing revenue bonds and equity from the developers and the total cost of the project. Information obtained 7C LARKIN, HOFFMAN, DALY & LINDGREN, LTD. Messrs. Robertson and Robinson August 8, 1986 Page 4 from the city indicates that the $100 ,000 storm sewer assessment set forth in Schedule A is for future work to be done at an indeterminate date. We have also been advised that if the final plans include a self-contained on-site control system for surface water, the city will consider removal of the storm sewer assessment because any future storm sewer improvement would not benefit the project. Current real estate taxes for the Site are approximately $25,000 . We estimate that upon completion the real estate taxes for 358 units will be $227,750 , or $750 .00 per unit. The developers are requesting the City of Fridley to issue taxable tax increment general obligation bonds to assist them in making this high-quality, high-amenity project economically feasible. They are working with the city to determine the amount of tax increment assistance available and to arrive at mutually acceptable terms for repayment of that amount. The developers will also be requesting the city to issue housing revenue bonds in the approximate amount of $15,000 ,000 . Tax-exempt bonds are also necessary to make this project economically feasible. Schedule C shows the effect on the cash flow of the project if it is financed without tax-exempt bonds, at currently available terms. Without tax increment financing and housing revenue bonds, the developers will be unable to proceed with the project. Their purchase agreement for acquisition of the Site is conditioned on the city' s approval of both types of financing. We are looking forward to working with the HRA and the city on this project. Please contact us if you have any questions prior to the August 14 informational meeting with the HRA. Sincerely, Linda H. Fisher, for LARKIN, HOFFMAN, DALY & LINDGREN, Ltd. jL& J c /14' Sherrill O. Kuretich, for LARKIN, HOFFMAN, DALY & LINDGREN, Ltd. LHF/SOK/psb Enclosures cc: Mr. Harry Yaffe Mr. Ken Belgarde LHF:AV4S 7D SCHEDULE A Fridley Apartments • Cost Estimate Construction Contract 10,740, 000 Plans and Engineering 350, 000 Assessments 100,000 Land & Carrying Cost 890, 000 Soil Correction 1 , 277 , 000 - 1, 500, 000 Park Dedication Fee at $500/unit 179, 000 SAC Fee at $380/unit 136, 000 Loan Fees 825, 000 - 1 , 200, 000 Interim Interest 1, 662, 500 Contingency 300, 000 General Contractor Fee 500, 000 Developer' s Fee 800, 000 Total 17,759, 500 - 18 , 357 , 500 Sources of Funds Housing Revenue Bonds 15, 000, 000 EQUITY (AT 10% ) 1 , 776, 000 - 1 , 836, 000 GAP 983, 500 - 1, 521 , 500 TOTAL COST 17 , 759, 500 - 18 , 357 , 500 7/31/86 7E SCHEDULE B Fridley Apartments Rent Schedule Type # of Units Rent Total Handicap 9 495.00 4,455 One Bedroom 54 525.00 28,350 Two Bedroom A 117 595.00 69,615 Two Bedroom B 27 585.00 15,795 Two Bedroom C 52 575.00 29,900 Two Bedroom D 27 585.00 15,795 Two Bedroom E 18 585.00 10,530 Three Bedroom 54 650.00 35,100 Garage 150 35.00 5,250 Mini Garage 20 50.00 1,000 Large Garage 10 75.00 750 Laundry 358 10.00 3,580 Monthly Rent 220,120 x 12 Gross Income Potential 2,641,440 HJY:bb 07/31/86 7F SCHEDULE C Fridley Apartments Pro Forma Cash Flow Taxable Tax Exempt Mortgage Bond Gross Income Potential 2,641,440 2,641,400 Vacancy - 5% (132,072) (132,072) Effective Gross Income 2,509,368 2,509,368 R. E. Taxes & Expenses ® $2,650/unit (948,700) (948,700) Net Operating Income 1,560,668 1,560,668 Morgage - Taxable Constant 101 30 years = 10.98 Add: Straight .25 Line cost of 21 pts to lender for forward committment 11.23 $15,000,000 x 11.23 Cash Flow Tax Exempt: $15,000,000 x 9.5 Constant Cash Flow (1,684,500) (1,425,000) (123,832) 135,668 Note: 1.1 Debt service coverage ratio was used HJY:bb 07/31/86 7G SCHEDULE D Fridley Apartments Analysis Land Cost/Unit Soil Correction 1 , 127 ,000 Assessments 100 ,000 Dewatering for on site utilities 150 ,000 Total Uses 1 ,377 ,000 Land Cost Purchase Price 890 ,000 Assessments 100 ,000 Soil Correction 1 ,277 ,000 2 , 267 ,000 358 Units 6 ,332/Unit Land Should Cost (Assuming Assessments Paid and Reasonable Soils) 3 ,000/Unit 3 ,332/Unit x 358 Units 1 , 192 ,856 Say Gap 1 ,200 ,000 7/31/86 ;SCHEDULE E HARRY: S. OHNSON ;,-- :-,7 .-; , . :' LAND FSUR S - ' July 25, 1986 Mr. Ken Belgarde Bel garde & Yaffe Companies . 7841. Wayzata Blvd. Minneapolis, MN 55426 Dear Mr. Belgarde, " On April 4, 1986, Harry S. Johnson, Inc. was retained by your firm to investigate a site located in the Northwest Quadrant of University and 83rd 1 Avenue NE. We are in possession of logs of eighteen test borings prepared by Geotechnical Engineering Corporation and dated September, 1981. The general soil profile encountered in the borings is surficial soils over basal soils. The surficial soils include uncontrolled fill , topsoil and swamp deposits. The basal soils are coarse alluvium, fine alluvium and glacial till. The groundwater table was encountered in the borings at elevations of about 862 to 867. Groundwater was at the surface in some cases but averages about 2.5 feet below the surface of the surficial soils. The predominance of groundwater creates construction procedures that require special design. The surficial soils are soft and subject to decomposition, consolidation and settlement. These soils will have to be removed from building, parking and roadway areas. A regional groundwater study of the proposed site was conducted by Subterranean Engineering Corporation. A copy of this report is attached. An on-site inspection revealed construction by Vantage Companies immediately south of the subject site. This site consisted of the same approximate number of acres and with similar near surface water problems. Northern Dewatering, Rogers, Minnesota, was dewatering the site for grading. The pumps were running for two months at a cost of approximately $50,000. Vantage Companies hada 30 day completion date with grading equipment working around the clock, 24-hours a day. It is estimated that the subject site, with daylight grading operations only, would utilize four months dewatering at $25,000 per month or $100,000. • Harry S.Johnson Companies,Inc Suite 199 Soutfstown Office Pork 8100 Penn Avenue South Bloomington, Minnesota 55431 Telephone:(612)884-5341 Earthwork estimates 'and'quantities of a preliminary nature have been computed. During our site investigation .we met with Park Construction Company's job superintendent and estimator-on the Vantage Companies project. ~ The job superintendent apprised us of some of the problems inherent to their project. Park's estimator related their bid price of just under $1,000,000 for earthwork and for which they became the successful bidder. It was stated that the problem was not so much in finding good material but finding a place to dispose of the unsuitable material. The Vantage project had 200,000 cubic yards removed with 180,000 cubic yards (compacted) hauled in. Data extracted from Geotechnical Engineering's soil report gives us an estimated quantity of 105,000 cubic yards of undesirable soil. There is approximately 56,000 cubic yards of good material in a hill on site. Good material (compacted) that is required to create parking and roadway levels two feet above water table and building floor elevations four feet above water table, amounts to 173,500 cubic yards. Good material to be mined or hauled in is as follows: 173,500 C.Y. - 56,000 C.Y. = 117,500 cubic yards. As was encountered on the Vantage site we would expect to run into pockets of deep, undesirable soil. We would estimate the earthwork correction costs on the subject site to be in the neighorhood of $1,000,000. With respect to utility installation, Dewatering Systems, Blaine, MN, was contacted. The cost to install well points, dewater and remove well points would cost between $10.00 and $14.00 per lineal foot for a depth equivalent to water main installation. A preliminary layout furnished to our offices was prepared by James Cooperman and Associates. From this layout we estimated some 4600 lineal feet of water main and services at an average cost of $12.00 per lineal foot, for a dewatering cost of $55,200. The estimated footage for sanitary sewer is 3570 lineal feet. Since sanitary sewer depths will be greater than 8 feet we used the $14.00 per lineal foot dewatering cost. The dewatering cost for sanitary sewer therefore would be $50,000. Assuming a single dewatering cost where utility lines parallel each other we would estimate these utility costs to be $50,000 + $12,000 =. $62,000. Additional test borings are presently being drilled to assist in isolating some of the forthcoming unknowns. Depending on their 'outcome it is possible that proposed buildings will alter. The nature of the site dictates special equipment be utilized to obtain additional borings and earthwork testing at a cost of $15,000. The storm sewer system would include retention, ponding and rerouting of ditches entering the property from the east and southwest corner. It is anticipated that dual 48° arch concrete pipe will be utilized to handle the aforementioned ditches. Arch pipes are necessary due to lack of cover. The estimated cost of off-site storm water handling would be $75,000. r 1 � y Special design and construction 'procedures;'-will, be required to bring this site to fruition. It is estimated some,.$25,000 additional engineering fees will be"necessaryto change the existing site into a viable, successful `. project.',;,, Following is a recap of estimated costs for,special design and construction _ procedures .4 r, Dewatering • �'a $ 100,000,, ? Earthwork " • 1,000,000 Utilities Dewatering (San. sewer & water mains) 62,000 Add. borings & testing 15,000 _ Storm sewer 75,000 Engineering • 25,000 1 GRAND TOTAL $ 1,277,000 •Submitted by: gilete;ttelletw 4Ard, 'ichars s . c asert Mery n i dens Engineering Project Coordinator Registered Professional Engineer Harry S. Johnson Cos., Inc. STgiE OF MINN, 46, N0. 8435 7K MEMMISIMMMW SUBTERRANEAN ENGINEERIN5 CORP. . professional solutions to your soil engineering needs Job No. X-86073 • May 9, 1986 Belgarde and Yaffe 7841 Wayzata Blvd. • St. Louis Park, Minnesota 55426 re: Apartment Building Project 83rd Avenue N. & University Ave.N.E. Fridley, Minnesota Attention: Mr. Ken Belgarde As requested by Mr. Ken Belgarde we made a regional groundwater study of the proposed site and surrounding areas, to determine the approximate location of the groundwater table, subsurface drainage gradients, etc. This study included: 1.) Examination of U.S.G.S. topographic maps. 2.) Review of previous Subterranean Engineering reports for groundwater levels at other sites nearby. 3.) Examination of possible drainage alternatives for the proposed site. 4.) Preparation of this letter, including findings and recc mendations A review of topographic maps of the site and its surrounding area generally indicates that the westerly portion of the site is swampy and wet in nature. The ground surface generally slopes to the west, towards the Mississippi River. 6875 Highway 65 N.E. P.O. Box 32308 Minneapolis, MN 55432 (612) 574-1242 12203 Nicollet Ave. So. Burnsville. MN 55337 (612) 890-6510 ® • - A study of our soil reports for other sites generally indicated that the groundwater level is consistently high at this site and surrounding • areas, undoubtedly due to a perched water table condition. The ground • water is entrapped within the upper sandy soils, and is retarded from further ' downward percolation by an impervious clay layer at depth. As shown on the attached Drawing,5 locations including this property have groundwater elevations ranging from 901' to 862' , all at relatively shallow depths below surface. These perched ground water levels are seasonal, and tend to fluctuate seasonally and annually. The groundwater elevations indicate a generally east to west, and northeast to southwest flow of groundwater. • Groundwater at this site is the lowest of the 5 sites studied, but there is a large re-charge area frau the north and west. We have considered tie possibility of draining the site with a storm sewer system to lower the water table. The City of Fridley has already partially done this, by installing a 12" diam. perforated pipe along 83rd Ave N.E. ( south boundary of this site), which drains from the west toward the 83rd Ave - Main St. intersection. Fran the manhole at this street corner there is a 33" diam. storm sewer line that drains along Main St. to the south. The invert elevations of the 33" diam. sewer line are 858' at the instersection, down to 855.9' at a manhole about 562' south on Main St. On the basis of the above, and with due consideration for the large recharge area feeding into this property, we conclude that significant water table lowering will not be possible. Appropriate storm sewers or drain tiles that connect directly to the 33" storm sewer at the corner of Main St. & 83rd Ave.N.E. could slightly lower the present water table, but only by about 1 to 2 feet. Thus planning for the development of this property will have to take • into account a permanently high groundwater table, approximately from elevation 865' at the northeast property corner, down to elev. 860' or 8591' at the S.W. corner, after internal drainage improvements have been done. ,.� SUBTERRANEAN ENGINEERING CORP. •M••ftj�i'Cs'r MINNEAPOLIS, MINNESOTA ® 7M lowest design floor elevations of buildings should be a minimum of 2k' above the new groundwater table after the drainage improvements are made, to allow for seasonal water table fluctuations. During actual construction temporary de-watering by wellpoints or deep wells will be required. . We trust that this provides the information you requested,and that this will help you with your preliminary planning. If we may be of any further assistance, please call the undersigned at 574-1242. • SUBTERRANEAN ENGINEERING CORP. 1jut Mervyn Less Registered Professional Engineer MM/pg Distribution: 2 cc Mr. Ken Belgarde 1 cc Harry S. Johnson Land Surveyors, Inc. Attention: Mr. Dick Schabert 1 cc File Enclosure: 1 Map • • SUBTERRANEAN ENGINEERING CORP. ~ alff MINNEAPOLIS, MINNESOTA -7...,—' J - _ y _ » t•i*b ,. • . 0- , . t„, t,, Al e - . ...... -... 6.1 - - - •.X.- . ,.' a t o C o i N '\ -'� : • ‘.. ( • --:°/".-' 0 ..0 .r:7 ‘.. - I i • C•?- • • , I. - • � � q I g • t1-•••• ND - .L _ o t / i . , �_ . „c, , . ... •••••••• -„ _ T • e ,.. . , , , a _ : .k„....... •;•••_, �.Q` '�. .. ,•,, - � - •. 1 I �r fie . • ' /. f W. _. — �j• y : : R_ .:� ,.t. -. o l -J • "J. 0 o• _-_Si-Ti othy Scb rk� !2....____. `• .� �1 . v J-- _ it/.• t I•."._l�i lame Geo-.-..-. -w DD.c� .11J- • 4..• , . ._, •ty. •—_____,L i i : :.., : . • ; ,r\ - , •I ‘‘-.) • :rt • • / r4=0 • . OM - .. :.�;::f .. — •—._— .-. . •.7:..044..•:I...,!2::.. ........ -.•1.••:-...:•s ,.. .ii_ ., • ,Iii. :- 1' i.:1•••-. !Addle 7.*t .• . :- •Or . Z.-A. : : .,..„------...--- ....5.\_ ,R3 - ...1;i: 1:.1.''s.,....41.-.N.,,,v ::..4.:.:_i 6,..1" ''..-,1.c Liclie :..i:::. ?-1.. .:-':.:i 1:;-\1;;.;-•4. Yll : .;i .: .(s. . 6, . • ;,.2 a� :] " �_`i, o •1-. Laddie Lake ! ;'7 ,:.,1 . I, 0 c..........„ 1 .•_-. r _ •k..7 ' • i•t'..: -- • ••••• . ....._,. 14-a:-,46_,.. . -1... i' .. . . ol .;.;., ,_ ..,. ..,, ..0 ---_,, .• 1 ..! .!.; I . - . ....„---.9.: '1 r'..":•:..... . 11) -16 ' d- . -' tki**Iiii-P 7---..;" ..1..:1; 4",!.-2:- -- \.7-----••—•-• ' ` `_- r �' vert ."•� • '\ =I s ' •�• • tit-•.. •r i� ,,� I i• — `/ Fes' -,�IF1 ••••i- ; :1•�• • - - -.�_• 'sr ' ' .e`'la.. j -7. '.- -.•p,_� :•r + ------ �aNa'NG LAKE P-ARF� - •e ';.:. _ ,.1�--- t• , .s........, 'f LJii •:Ce'r 1 eos \________ I :-. :,,,..........._r,......„1 _:, :� ^' :9 h Lakf, . `•• • r �- l f1_, 1 •(.•. 'Ul t.. ♦•4 .e - �1 •111 1.'_^S F�.1te^ -• ` 599 .p.. _ -_ ::-..‘.1:..-)• sik :, JR4` . r _ `~: :�1:1;:r l.,_ ' ' .� _ •o r.. _ — � C: 7,17.4. ,...," GRJUNDWATER ELEVATIONS Site No. Source Ground Water Elevations - Ft. 1 Geotechnical Engineering Report 862-867 2 Our Job X-86001 888-889 3 Our Job S-78278 900-901 4 Our Job S-7819 897.5 - 898.5 5 Our Job X-84200 874-877 70 PROPERTY DESCRIPTION That part of the Northwest Quarter of Section 30, Township 24, Range 22, Anoka County, Minnesota, described as follows: • Commencing at a point on the west line of said Northwest Quarter 533.25 feet, more or less, south of the northwest corner thereof (said point being the intersection of the west line of said Northwest Quarter and the westerly extension of the south line of the plat of COOPER - DALBERG ADDITION); thence easterly and parallel to the north ine of said Northwest Quarter to a point being 600 feet west of west right-of-way line of said Trunk Highway No. 47; thence southerly parallel with said westerly right-of-way line of said Trunk Highway No. 47 to a point being 450 feet north of the south line of said Northwest Quarter of the Northwest Quarter; thence easterly and parallel to the north line thereof 600 feet to the westerly right-of-way line of said Trunk highway No. 47; thence southerly along said right-of-way line to the southwest corner thereof; thence westerly along the south line of said Northwest Quarter of the Northwest Quarter to the southwest corner thereof; thence northerly along the west line of said Northwest Quarter of the Northwest Quarter to the point of beginning. EXCEPT ROAD, Subject to easements of record. Note: This description is based on the tax record and should not be used for any legal action 8 CITY OF FRILLEY HOUSING AND REDEVELOPMENT AUTHORITY MEMORANDUM TO: CHAIRMAN CDMMERS PND ARA COMMISSION MEMBERS FROM: NAS IM M. QURESH I, HRA DIRECTOR SUBJECT: PARKING FOR THE FRILLEY PLAZA OFFICE BUILDIIU DATE: AUGUST 1, 1986 At the July 10, 1986 HRA meeting, Mr. Gus Doty approached the HRA with concerns regarding the parking problems he had observed in the joint Office Building/Civic Center parking facility. Mr. Doty's lease payments for the use of the parking facility had not been received since their initial due date of July 1, 1985 and he stated that his failure to pay was linked to his disati sf action that the HRA had not provided adequate parkig spaces as per the 1982 Lease Agreement. • A plan to restrip the parking lot thereby creating 166, 9 foot stalls has been developed and should commence sometime this month. Please find enclosed a map which indicates the 166 parking stalls which will be created with the restriping project. 8A MEMORANDUM MEND TO: City Council MEMS FROM: Nasim Qureshi, City Manager MF.MD LATE: July 18, 1986 SUBJECT: Civic Center Parking At the July 7, 1986, City Council Meeting, Mr. Gus Doty of Fridley Plaza Office Building Partnership was justifiably upset because only 143 parking stalls have been striped in the Civic Center parking lot. Me HRA Agreement of September, 1982, calls for 166 shared parking spaces. Attached is a 166 parking space layout for the Civic Center lot using nine (9) toot wide stalls. Unless there is a problem with this proposal , we intend to implement this change during the month of August. Vim M-86-162 . ;,,,,,.. ,. -....,..;,..,......-:;..,,,,..::-.;.7,14,-K ''-:-•77,'.(7'1'.....7a:', ,,.....f.:''.,.:',N.k4I4 1„- --.,.-.: ,..,,'~. iv TLi*.; - --..- : .- - ,, ._ : „ .•_ .7. f • . ' ' --..., tUUPNIIIIII '' .1, — ' . . ,.•, <11101 , ,.. 4..."., , , , .),_..1' 4 4,.. ,. ,. • calit, , ' t _,. ..-. , ...,. ,-..4',-;*.:'''4*•:.:. 'i,-;•:''2•.'''.7,-'.....-A --, °-% - .,-,-,,,,,,,,,-# ,:,,,x,,,;.-.,A.,,;..-, ,-,---,;-1-:.'-‘,,,,,4...',-,‘..,:,,,.-,.--,4',--7,;',,••',..•",::.,,,,,i :".:r.f.."',".4.."4?.."-f;:'2'-;;,:".-.i',""4,,,-,.. 1•••',,i",.--.1,' 1".'''"''' •'7 ;' •.., ,,' '..•,...',,,'.:1,1::: .,'Ilfii.if.'7k,,:::i°;,,.''''11.41''''''f;',,,k-r,,,Aw-.47::',..'i...'":r..:,.,,trk,':.....:-.'.-','''1- -,-.-..k.,-•';.•4,i;'-',,l'.!'•'?":41.-r.,., ,..;".";.-T,P4',- ','.. .",' ' - ' , , ; •.. . ,--,i, -..,, ...•-• '-',-•qPi,-'5.-,•,,'`. .?'/.!`'.?'4,1',.'Li'-10,4,47*0.4''.4`'''''"''';'"' ".''''''''':''' ''' - ' ''''''''*'''' '• ' r ' ' ' ' ., . . . . • - "... , ,. , . , . ''446-40, ,.; , 1 .,, .,„.!lb ja,.. Alv.:--,,4,4.41;,,,';‘,..44t.zi.',..:,44„ _.,.".• -.4,*.<,-••..*;*. --••.;•'`.:-. iiiiiimeignii ,:7 ----- ,Allkot...5,. . , . ,•• ' ,'''-', 44 , ri,,-, ..,,,,,,,,t, -..-- , . ,. , . -. .,......, ;- ,,, .:.i. ,,,. .,, •f -,".1 ".';',,s.,:.".,":t.'ff4,;.',,, ',....,;,.•, • ... ' ..' . 'St''."'"..'"'.:-•',':•-,;;',/..: .., .1 : '. ';, 1.:' -'! 'I" --- i'''''. .,, .-:.'7':::. ':',,,,i-::---:,i; !.....'1. ..:i' . '1 , .4-i4,'-',- P"''*:': ':'''''ir' ''' ' 4' '''' ' ' '''' . ' ':''.i' '. .':-.r - ''''' '.'1 ': r:::l.:/:,.;:'-':'';•i.‘:',I,''',24ti:t:t''i'q'k..,':!'.":'ii;;.:':, :.',';; ._-. ,....,....,,,,,,,...,,,,,,,„..„-.., ... ,....,,...,..-.:.4. ,..-••,-?-c,- ""' ., :'4"'"•-..." ,4411;44,4,tr,wP•tr".4,,,,,,..•*,-...',',-,..!f,,i,',.;:"."-:"...,:1•04,.. ....,-•,, -..... - ,. •,.„, r '''.: !:,;,' .., .. : ,:', . L''',','''''," .:t.,:','4,,,,,‘,?,..,.. ',4i.::'''1.4 fiiiit,411:4,;'",n1.'i,':'::-. ..:7''''''-1Yr.?:-".''-' ; , . •'*. '1111111111‘ •, ..."5-'•,-.'-1•,[...,.'...'. . ,-.i. 4'.7,.. •,..(i."sfiiii*•'',.ii4:'''''''''''...';',1',.. .-"•''.444,X1;74',''• :11'.'',r.,1!:CU':':''ie.Alf 4?"?,::i. ',-;:-.;-.-%';--;,?--r...--,'"!• - .-. ::.4 ... '- ..y.... -,-_-.,:-..- -' --,--.. .lirp-,*:-...,:li.;.„L.:.:'4.1.4=t-....,..4....I.L.4-..:—.- ..,-,..-. ..- forytivirittpir, -- -'aa:-';-: • . 2 I'.::, A:--APCMaljle-....i ' -vosaegielper*ot ..';'?f,a.- ,,izY.:;?•,-„:..-',-,-.::;,..'-i'4,:-..,;,,i.e,-,,:',,,I),-.'''';',:,-::;,..,-;,i,-,'-',._'„,,,. 1.- : :4:,,,,,...?-,,i;;;•-.t...:-.,,r,,,,-,:;.!:-..i;-',,,,,-.41,4-x:-.--4.....----,,, ' ''. V • 7 0*0) I. IPC..1 .. 971 ;,„,-,,,,,,„,:..„,:,..4... .44, .:.-„,::,_,.,_,,,.:.:1,,,,, r,. .- 101;"" ''''''''' - ' . ,, . ..: .. , , _a* ... , i • l' 1:;!:4"-,•';': ':.-''' ': . . 1: _01,.. 1TOT)kL PARKING SPACES •t. • 0.' ',, i, , r .... . , • . .. z.: , : ,-4 .•,' ' '4. . • 4, •• 6• 4,4',. - + '--:,... ..':.7 . ! '54°:-.4' 554:1i;j'imi -':;'.;.it.: ''. . ,'. ••4 % „ .',,,,,,,,,,,,t; , , .4, . .. ,. . • , .- .,, +4' • . 4;. 01i40.''' . , 4 .,. ....ras. ,.........a.. r '''',Icr ililaillellirb_ i*::,;;:x;*'-:** - ''''''r ' , , r.11 '_.......-- -4'11P:t., ' • ... i '-: - ,•,• '' '”. ,1'* ,.. ' .,,{., ,.,."' ::44 , ,•. ..„.,-- - . —15 . ,,,,.7.- t -.,,•.....,........ my .•,‘ .•"°.• ,.-14:.ill,' ‘ --. It,.: ' ,...(s -..i `, . • , - -• , s. . , IIrL r. A,., ,, . • TM io ' IF 7' I . ..-• • • - iiiiiit : •::•,,<F:<:',''''';''''''.1 4; <, a ..4,,, ';',.,, .. ... . ..,. . . _ . . . < . • 9 CITY OF FRIDLEY TECHNICAL ADVISORY COMMITTEE MEETING JULY 16, 1986 CALL TO ORDER: • Chairwoman Schnabel called the July 16, 1986, meeting of the Technical Advisory Committee to order. ROLL CALL: Members Present: Virginia, Schnabel, Joy Otten, Carmel Sheridan, Teresa Ledwein, Pat Gabel, Robert Schroer, Rollie Benjamin, Dick Harris, Rich Dalton, Larry Kuechle, John Olson, Betsy Rauenhorst, Barry Warner Others Present: Jim Robinson, Planning Coordinator Jock Robertson, Community Development Director John Flora, Public Works Director Myra Gibson, Planning Assistant Chairwoman Schnabel requested introductions from those present. Mr. Warner noted that meeting would be kept to 90 minutes. In studying the University corridor, Mr. Warner noted that there are many different factors influencing the area including residential areas and business areas. The committee members will need to take all factors into consideration, then begin to establish goals for the corridor. Ms. Rauenhorst reviewed the map of the corridor from 53rd through S5th. She noted that there is no distinctive separation between Columbia Heights and Fridley at 53rd. Some areas along the corridor are well kept and neat in appearance while others are not. At 57th, the access to the east frontal,u road is confusing. Access to Moon Plaza is difficult from the south. The west side of this section is screened with landscaping. The intersection at Mississippi and University has begun to show uniformity in design; howeycr, pedestrian and bike traffic is difficult and the northeast corner could be enhanced. The view is channeled down the corridor to 69th. After Rice Creek, the view is open. After 73rd, the residential areas have no screening. the businesses on the west side tend to be poorly maintained with no buffer . On Osborne, there is no focus to the buildings. Inc signs compete for attention on the west. The residential area on the east is again open. The University Center from 79th to 81st has a nice appearance. When travelling north, there is no crossing at 79th to gain access to the west side. Along the west side en 81st, the development under construction will have a large parking lot along University. Ms. Rauenhorst noted that overall some good things are happening in the corridor area. Ms. Rauenhorst showed slides of the area •reviewing points made from the map. She noted that the chain link fence was originally installed to protect residents from traffic but wondered if this was still true. Mr. Warner noted that the area lacks consistency. University is a trans- portation corridor. The signs are not consistent, and there is a contrast iT, maintenance. The task of the committee is to establish the image they wish to portray in the corridor. 9A TECHNICAL ADVISORY COMMITTEE MEETING. JULY 16, 1986 PAGE 2 Mr. Harris indicated that there are many Russian Olive trees in this area. He felt landscaping would help the look. He suggested using a mix of trees that mature differently and adding evergreens. Maintenance is also important. Maintenance of the grounds is easier when trees are trimmed. Perhaps the students on the summer crews could do trimming. Mr. Flora stated that the City does not do work on the State right-of-way. Mr. Warner agreed that landscaping is important, and that it is important to establish a variety of plants. The City has a stronger influence outside of the State right-of-way. The City could establish design standards for future development or redevelopment. Ms. Schnabel asked each person to give their views of the presentation and discuss their impressions of the corridor and what they would like to see changed. Ms. Schnabel also added that all presentations given were from the south travelling north. She would like to see a presentation from the north travelling south to see if any other points became obvious. Mr. Warner added that the impression along University is different durinh, the day and during the night. Ms. Otten felt the best image is where the landscape is well kept . The fence is unkept and detracts from the image. Ms. Sheridan felt the open look on the northern sector of the corridor more appealing. The fence changes the appearance from clean to messy. fl north area is more dark at night, but has a cleaner more unified appearanc . The landscaping in that area is also better. Ms. Ledwein agreed that the fence was a problem and would like to look at options for the fence. She would like to see the image that the City has started in the plaza extended to other areas. Ms. Gabel would also like to carry through the image as in the plaza. She would also like to see the fence removed from the business areas but kept in the residential areas. Mr. Warner asked those representing residential areas to see what the residents ' view of the fence is at this time. Ms. Gabel felt that most people want the fence especially where there is fast moving traffic. Mr. Schroer felt that the area should be cleaned up around the fence. The fence tends to keep people away from businesses in the southern area. Tic northern area is open. He felt traffic was not as fast as it once was, but traffic is now heavier. He felt the fence was a detriment. He thought the image in the plaza area was neat and clean. 'Ms. Otten indicated that she would like to see an image of quality in Fridley. Mr. Warner agreed that curbside appeal influences where people will make their purchases. Mr. Benjamin felt the fence should be eliminated or upgraded. The landscapinc, needs upgrading which is a short term goal. A long term goal would be to carry TECHNICAL ADVISORY COMMITTEE MEETING, JULY 16, 1986 PAGE 3 9B through the theme from the City Center plaza. Perhaps an encouragement program by business people for businesses to upgrade their appearance would help. Up- grading is in the best interest of the businesses. Ms. Schnabel noted that the City sees businesses when they are going to t upgrade and the City has tried to have businesses upgrade their property. If businesses work together, it may be better received by business. • Mr. Harris noted that Mr. Gerald Paschke had been working with Spring Lake Park and that city is interested in this project also. In the original proposal to HRA, soft median lighting was recommended. The lighting in the corridor seems to be haphazard. Other communities have done work with soft median lighting with good results. Mr. Dalton indicated that the State of Minnesota Department of Transportation has limited funds for landscaping. Most of the funds are for construction and maintenance. Ms. Schnabel asked Mr. Dalton to check the mowing program and removing the fence. Mr. Dalton indicated that mowing is done between certain dates. For the weeds, the City could be granted a permit to spray along the fence. MnDOT will not do so. Mr. Dalton checked into removing the fence. Most people at the State that he talked to were opposed to removing the fence. The fence was installed in 197U and keeps people off the State right-of-way. The fence may be in its current condition because of snow storage. Mr. Dalton indicated that the general attitude at the State level is as long as the fence serves the purpose that was intended there is no reason to remove or repair. Mr. Warner suggested that some sections of the fence by businesses could be removed and the fence near residential areas retained. Maintenance of the fence is important to keep the fence in good condition and weed control is important. Mr. Kuechle felt snow storage would be a problem if the fence is removed. Anything will be difficult on the right-of-way because the strip is as narro.:. as six feet. He felt it was difficult to walk anywhere in Fridley. Pedestrian, and bike traffic needs to be looked at. He felt that most residents would want the fence to remain. He expressed concern about a heavy mowing program becaus' grass does not grow well in the soil here. The residents are concerned about Fridley's image. He would like to have a good image and positive identity. Mr. Olson indicated that what is done next to the fence may be more important than the fence itself. Perhaps something can be done to create a kept look. He felt the service roads were convenient from a safety standpoint and were more attractive than having an access next to the road. Perhaps better signs would make access easier. Mr. Warner added that offset access keeps traffic at the intersections less -congested and agreed that signs could solve that problem. TECHNICAL ADVISORY COMMITTEE MEETING, JULY 16, 1986 PAGE 4 9C Mr. Flora offered some suggestions to the committee including a black vinyl fence to replace the chain link fence. The black vinyl is less visible. Perhaps vines could be grown along the fence to improve appearance. Again. the fence could be removed along business areas and kept in residential areas or the fence could be moved to provide room for something else. The residential areas could be screened while business areas could be kept open. Some median treatment would be trees, schrubs and lights. Signs could be more consistent in design and better signs could be used to make access to service roads easier. He also suggested involving the Chamber of Commerce to encourage businesses to improve their appearance and install signs more consistent with other signs. Ms. Schnabel noted to be careful with trees so that businesses can still be seen and to be cautious with sign design so they don't become repetitious and dull. Mr. Robertson informed the committee that the HRA had approve an agreement with the Woodbridge Corporation to develop the former drive-in theater site. This is a positive area for a prestigious office complex. Mr. Robinson added that maintenance is important. Business people need to be encouraged to work toward an orderly appearance. Pedestrian movement needs to be emphasized, work with both the public and private sector to have signs more uniform, look at lighting and uniqueness. The next meeting of the committee will be for concept generation and there would need to be some firm answers regarding the fence. Mr. Warner asked residential representatives to contact other residents to get their thoughts about the fence. He noted that there had not been much discussion about intersections. These are the concentrated areas where small changes influence a large number of people. Mr. Warner distributed a list of preliminary goals and reviewed the goals. He then asked members to prioritize the goals. Mr. Warner will summarize and provide the result at the next meeting. The next meeting of the Technical Advisory Committee will be held on Wednesday, August 13, at 8:00 a.m. to complete the goals, establish objectives, and discuss ways to implement goals. At that time, the interviews will be completed and Mr. Warner will come back with some concepts as to how to implement and somc alternatives. Chairwoman Schnabel adjourned the meeting. Respectfully submitted. Lavonn Cooper Recording Secretary TECHNICAL ADVISORY COMMITTEE MEMBERS 9D MEMBER ADDRESS PHCNE CHAIRWC IAN Virginia Schnabel 1527 Winde here Circle N.E. 571-3318 UNIVERSITY AVENUE BUSINESS GROUP 571-4097 Richard Harris 6200 Riverview Terr. N.E. Gerald Pascthke 7970 University Ave. N.E. 786-9574 David Harris 6279 University Ave. N.E. 571-7792 or 333-7327 Robert Schroer (alt.) 490 Rice Creek Blvd. N.E. 784-9231 HCLLY CENTER REP. Jay Otten 6570 University Ave. N.E. 571-1780 Gloria Lund (alt.) 6534 University Ave. N.E. 574-1693 MOON PLAZA REP. Teresa LedJein 6239 University Ave. N.E. 572-0676 Carmel Sheridan (alt.) 6209 University Ave. N.E. 571-5156 HYDE PARK Pat Gahpl 5947 - 2 1/2 Street N.E. 571-1288 SYLVAN HILLS Larry Kuecthle 202 Mercury Drive N.E. 571-4862 MNDOT Rick Dalton 2055 N Lilac Dr., Golden Valley 593-8523 55422 ANCEA (RUNTY HWY. DEPT. Bill Sironen 325 E Main Street, Anoka 421-4760 Jon Olson 325 E Main Street, Anoka 421-4760 55303 ERILLEY PUBLIC WORKS DEPT. John Flora 6431 University Ave. N.E. 571-3450 FRIILEY COMM. D WL. DEPT. Jock Robertson 6431 University Ave. N.E. 571-3450 FRIDLEY PLANNING DIV. Jim Robinson 6431 University Ave. N.E. 571-3450 PROJECT MANAGER Barton-Aschznan Assoc., Inc. Barry Warner 1610 South Sixth Street, 332-0421 Mpls.-, MN 55454 PERSCNS RECEIVING MINU'I: John Gargaro City of Spring Lake Park 6615 Fridley Street N.E. Donald Busch Fridley, MN 55432 City Clerk 1301 - 81st Avenue Rollie Benjamin Spring Lake Park, MN 55432 7 810 University Avenue N.E. Fridley, MN 55432 City of Cblunbia Heights Todd Stutz Uxt nunity Development Director 590 - 40th Avenue Cblunbia Heights, MN 55421 .,. _.Jo HERRICK & NEWMAN. P.A. ATTORNEYS AT LAW VIRGA C.HERRICK 6279 UNIVERSITY AVENUE N E DAVID P.NEWMAN FRIDLEY,MINNESOTA 55432 JAMES E. SCHMECKPEPER 571-3850 August 7, 1986 Nasim M. Qureshi , Director Fridley Housing & Redevelopment Authority Civic Center 6431 University Avenue Northeast Fridley, MN 55432 Dear Nasim: I have been unable to obtain from Bob Deike, prior to my departure , the proposed changes to the Addendum. Consequently, you will find a proposed Memorandum to the HRA updating it on the status of this Development. I thought you might want to include this in the agenda when you distribute it. If you wish to make some changes , please feel free to call Joan -at my office and she can make the changes since this is on the word processor . Sincerely yours , }fir,-c,z J . .. /1-ed — / �- DPN:JJH David P. Newman Enclosure 10A MEMORANDUM MEMO TO: Fridley HRA MEMO FROM: David P. Newman SUBJECT: Lake Pointe Corporate Center DATE: August 7 , 1986 The purpose of this Memo is to attempt to give you a general overview of the developments that have occurred on the above matter since your Meeting of July 10,1986 . An issue which Mr. Weir raised prior to the July HRA Meeting was his desire for an opinion from bond counsel that the changes to the Agreement did not effect the earlier opinion that the limited revenue note was tax exempt. I discussed that matter with Mr. Weir' s attorney, as well as Jim O'Meara, prior to your July Meeting . I indicated to Mr . Weir' s attorney that I had great concern as to whether or not we could do this . However , I made the conscious decision not to alert you of this potential problem at the July Meeting . My reason is that both parties were very tired, and patience was short. I knew that Mr . Weir was insisting that he needed this opinion and I was afraid that if I informed you it might not be possible, that this would inflame the present tensions between the parties and might further cause people to dig in their heels. Also during your July Meeting, while I was out in the hallway, Mr . Weir approached me about the possibility of the HRA releasing the balance of the 100 Twin site to him so that he could obtain financing due to the fact that interest rates were dropping . I told him that we would not make any further changes although he was free to raise this issue after the Development Agreement was signed and construction had started. In the insuing weeks we had several discussions with Mr . Weir ' s representatives . At one time they indicated to us that Mr . Weir was no longer requesting the tax exempt opinion. Also, during this insuing period, the HRA Staff and Mr. Weir ' s Staff met with the engineers to revise a construction schedule which under the circumstances could best satisfy the Developer' s needs while still keeping the estimated costs reasonable. An accommodation was reached between the parties and a schedule was agreed to. - Within the last week and a half, Mr. Weir again resurfaced his demand for an opinion of bond counsel that the limited revenue note would still be tax exempt after the proposed amendments occurred. Also during this time 1 met with the attorneys that 10B were handling the real estate transaction for Mr. Weir and they again raised the issue of whether or not the title to the balance of the 100 Twin site couldn' t be transferred at this time. Throughout this period I insisted that any further conveyance of land, until required under the Agreement, would not occur. After considerable discussions back and forth I received a phone call from Bob Deike, Mr . Weir's Attorney, on Friday, August 1 , 1986 . In that conversation he indicated to me a proposed resolution of our impasse. His proposal is as follows: 1 . That Mr. Weir would drop his request for an opinion of bond counsel that the amendments to our Agreement did not effect the prior tax exempt opinion. 2 . That the provision which we agreed to for arrearages under the limited revenue note to survive without interest if the bench marks were met, would now be included in the limited revenue note rather than in the separate addendum. 3 . That the HRA would execute deeds for the balance of the 100 Twin site and place the deeds, in trust, with an escrow agent with the understanding that deeds would not be released for filing until after January 1 , 1987 . In conjunction with this , that the HRA would also agree to the filing of a mortgage against the balance of the Redevelopment Property. The reasons why Mr. Weir is so adamant about the need for the title to the balance of the Development Property can essentially be summarized as follows: A. Interest rates are at a very low level and Mr . Weir wants to lock-in those interest rates if possible. Obviously, if we can help the Redeveloper on saving costs this only improves his chances of performing his obligations under the Redevelopment Contract. B. Mr . Weir has informed me that his financial people have become rather exasperated due to the fact that construction has not yet occurred. While we all acknowledge that the delays are beyond anyone' s particular control, they are now seeking further reassurance that title to the balance of the Redevelopment Property will be conveyed by January 1 , 1987 . C. The mortgage company is also insisting that its mortgage be filed of record prior to the time -2- 10C that any improvement incurs to the property. This is in order to maintain a priority position over the claims of any mechanics lien claimants . Although there are other ways around this, they are quite cumbersome and expensive. Those of you with a construction background I am sure are aware of the fact that the requirement that the mortgage be filed prior to the start of construction is a standard requirement. Between now and your Meeting, the parties will continue to have substantial discussions and I will be working with Mr. Weir' s respective Attorneys in order to draft the necessary documents which will be necessary in the event that you accept Mr . Weir' s proposal. I would like to make it clear, at this time, that the Staff is neither recommending or objecting to Mr . Weir' s proposal. Currently, we are studying it in great depth. However, due to the time limitations and the fact that the contracts for the construction of the public improvements must be awarded on August 18, 1986 , we have no alternative but to prepare alternative sets of documents for you to execute, providing upon the direction which you may provide to us. While this Memo is meant to merely bring you up-to-date and not to discuss the pros and cons of the proposal, I know that many of you will be giving this thought prior to our meeting so I would like to give you a little bit of background. Section 3 .5 of the Redevelopment Contract contains the provisions for the release of the balance of the Redevelopment Property to the Redeveloper. In essence what it states is that after January 1 , 1987 , the Redeveloper may exercise his option to the balance of the property if he delivers in writing a statement indicating that the exercise of the option is necessary in "connection with financing requirements respecting the minimum improvements as a whole" . Although I was not involved in drafting this original language, from talking to all of the parties who were involved, it appears that they are all in agreement that this was intended to allow Mr. Weir to obtain the balance of the property if necessary for his financing . I have little doubt that come January 1 , 1987 , Mr. Weir, under these conditions, would be able to obtain the title to the balance of the Redevelopment Property. Consequently, what he is really requesting is that the deeds for this property be executed now and placed in trust. There are numerous pros and cons to this proposal and it is nearly impossible to discuss them in any in-depth in a Memo. I would merely ask each of you to give this some consideration and - then to allow the Staff to review it with you at your next meeting. -3- DIRECTORATE a0 OF 1`<' � �o 0 r PUBLIC WORKS 46;174A CITYOF MEMORANDUM .r • FRIDLEY 10: Nasim Qureshi, City Manager PW86-227 G FROM: John G. Flora, Public Works DATE: August 8, 1986 SUBJECT: Woodbridge Development Projects Based upon the Council's decision to reject the various bids dealing with the development of the 100 TWin Drive-in site, we have rebid the projects and established new bid openings. This action was initiated in an attempt to obtain more reasonable bids and which would satisfy the agreed to suspense actions desired by Woodbridge and the City and as a means of facilitating construction this year and next year's leasing opportunities. The Water and Sanitary Sewer Proect $162 has a bid opening on Thursday, August 14, 1986 at 11:00 a.m. The Demolition and Site Grading Project $163 has a bid opening on Monday, August 11, 1985 at 10:00 a.m. The Landscaping, Irrigation and Lighting Project $168 has a bid opening on Tuesday, August 12, 1986 at 10:00 a.m. The street and storm water contract ST. 1986 - 1 & 2, Phase II remains valid. It is anticipated that all four contracts will be presented and awarded by the Council at their Monday, August 18, 1986 meeting. In an attempt to obtain greater contractor understanding and more responsible bids based upon the desired time frames, we have held separate prebid meetings on the projects to explain the overall concept, coordination and suspense dates that have been established. The Demolition and Site Grading Project calls for the grading of Lake Pointe Drive and all property south by October 3, Pad C and the remaining right-of- ways to be completed by November 7, detention ponds and the easterly 50-foot boundary to be completed by November 21 with all remaining work by July 31, 1987. The Utility contract calls for the completion of the Lake Pointe Drive utilities by October 30 and all other work by May 30, 1987. Page 2 — PW86 227 The Street projects calls for the completion of Lake Point Drive by May 30, 1987, the bikepath and storm system by June 15, and all other work by June 30, 1987. The Landscaping contract calls for the initiation of plantings of the areas on the south and east boundaries to start this fall, Lake Pointe Drive to be completed by June 15, 1987 and all landscaping and irrigation work to be completed by October 31, 1987. JGF/ts cc: Samantha Orduno 12 BND/fridley73 Extract of Minutes of Meeting of the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota Pursuant to due call and notice thereof a regular or special meeting of the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, was held at the Fridley City Hall on the 14th day of August, 1986, commencing at 7 :00 o' clock P.M. , C.T. The following Commissioners were present: and the following were absent: *** *** *** The following resolution was presented by Commissioner , who moved its adoption: RESOLUTION NO. RESOLUTION ( 1) REQUESTING THE CITY OF FRIDLEY TO ISSUE ITS $10,045,000 GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1986 , FOR THE PURPOSE OF CROSSOVER REFUNDING THE CITY'S $11,550,000 VARIABLE RATE DEMAND GEN- ERAL OBLIGATION TAX INCREMENT BONDS AND ( 2 ) APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDED TAX INCREMENT PLEDGE AGREEMENT " ITIS 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: 12A 1. The Authority has undertaken or will undertake, pursuant to and in conformity with Minnesota Statutes, Sections 462.411 et seq. , the public improvements (the "Improvements" ) wi hin and for the benefit of the Authority' s Redevelopment Project No. 1 set forth in Exhibit A to that certain Tax Increment Pledge Agreement, dated as of December 1, 1985 (the "Tax Increment Pledge Agreement" ) , executed by the Authority and the City of Fridley, Minnesota (the "City") , in connection with the issuance of the Series 1985 Bonds (hereinafter defined) . 2. In order to finance the Improvements and at the request of the Authority, on December 30, 1985, the City issued its $11,550,000 Variable Rate Demand General Obliga- tion Tax Increment Bonds (the "Series 1985 Bonds" ) . 3. It is necessary or desirable that the City issue, and the Authority hereby requests that the City issue, its $10,045,000 General Obligation Tax Increment Refunding Bonds, Series 1986 (the "Series 1986 Bonds" ) , for the pur- pose of crossover refunding the Series 1985 Bonds. 4. The Amended Tax Increment Pledge Agreement (amending the Tax Increment Pledge Agreement) attached hereto and made a part hereof is hereby approved, and the officers of the Authority are hereby authorized and directed to take such steps as may be necessary to execute said Agreement, in substantially the form as attached, upon approval and execution thereof by the City and upon the issuance of the Bonds by the City, and to carry out and fulfill the provisions and requirements of the Amended Tax Increment Pledge Agreement. • Adopted by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, this 14th day of August, 1986. The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken thereon, the following voted in favor thereof: - and the following voted against the same: whereupon said resolution was declared duly passed and adopted. - 2 - . 12B AMENDED TAX INCREMENT PLEDGE AGREEMENT This Amended Tax Increment Pledge Agreement (the "Agree- ment" ) is dated as of August 1, 1986; is by and between the City of Fridley, Minnesota (the "City" ) , and the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority" ) ; and provides as follows: WHEREAS, on December 16, 1985, the City Council adopted a resolution (the "Series 1985 Bond Resolution" ) awarding the sale of the City's $11,550,000 Variable Rate Demand General Obligation Tax Increment Bonds, dated December 30, 1985 ( the "Series 1985 Bonds" ) , to provide financing for certain public improvements (the "Improvements" ) made or to be made with respect to the Authority' s Redevelopment Proj- ect No. 1; WHEREAS, on August , 1986, it is proposed that the City Council adopt a resolution (the "Series 1986 Bond Resolution" ) authorizing the issuance of the City' s $10,045,000 General Obligation Tax Increment Refunding Bonds, dated August 1, 1986 ( the "Series 1986 Bonds" ) , for the purpose of crossover refunding the Series 1985 Bonds ; and WHEREAS, in connection with the issuance of the Series 1985 Bonds, the Authority and the City entered into a cer- tain -Tax Increment Pledge Agreement, dated as of December 1, 1985 ( the "Tax Increment Pledge Agreement" ) , and in con- nection with the issuance of the Series 1986 Bonds it is necessary to amend and supplement the Tax Increment Pledge Agreement by entering into this Agreement to amend the pledge of tax increments made to provide for the payment of the debt service on the Series 1985 Bonds and to provide appropriate pledges of tax increments for the payment of the debt service on the Series 1986 Bonds: NOW, THEREFORE, in consideration of the covenants and agreements hereof between the City and the Authority, and pursuant to Minnesota Statutes, Section 273.77 (a) , the City and the Authority hereby agree as follows: 1. Any capitalized term which is used but not defined in this Agreement shall have the meaning given to that term in the Series 1986 Bond Resolution. 2. In accordance with paragraph 15 of the Series 1986 - Bond Resolution, paragraph 2 of the Tax Increment Pledge Agreement shall be amended to the effect that the tax incre- ments pledged therein to the payment of the Series 1985 Bonds shall be the Modified Series 1985 Tax Increments . - 1 - 12C 3. In order to pay the principal of and interest on the Series 1986 Bonds, when due, the Authority hereby pledges to the City, for deposit in the Series 1986 Debt Service Fund established by the Series 1986 Bond Resolution for the payment of the Bonds, and the Authority shall pay to the City, Pre-Crossover Available Tax Increments and Post- Crossover Available Tax Increments at the times, in the amounts, and for the specific purposes set forth in the Series 1986 Bond Resolution, including without limitation paragraph 13 thereof, and, to the extent such tax increments are ever insufficient for such purposes, and the City, pur- suant to the Series 1986 Bond Resolution, advances City funds to provide prompt and full payment of the Series 1986 Bonds, the Authority agrees to reimburse the City for such advances from such tax increments, when collected by the Authority. 4. Paragraph 3 of the Tax Increment Pledge Agreement shall be amended to provide as follows: "In each calendar year (the "Current Year" ) , the tax increments which the Authority shall receive in the prior calendar year from its Tax Increment Financing District No. 6 shall be applied in the following priority: (a) First, to pay the principal and interest payable in the Current Year on the District 6 Bonds, and for this purpose, any prior redemptions of the Bonds shall be deemed to be a redemption of the District 6 Bonds only if and to the extent that such redemption is made with proceeds of the District 6 Bonds which were not expended for the purposes for which the District 6 Bonds were issued; (b) Second, to pay the amounts payable in the Current Year on the Authority' s $5 ,603,755.80 Limited Revenue Capital Appreci- ation Tax Increment Note ( the "Capital Appreciation Note" ) ; (c) Third, to prepay the District 6 Bonds, to the extent that such Bonds are prepayable in the Current Year ; (d) Fourth, to prepay the Capital Appre- - ciation Note, to the extent such Note are prepayable in the Current Year; - 2 - 12D (e) Fifth, to compensate for any short- fall of tax increments pledged to the Bonds pursuant to paragraph 2 hereof; and (f) Sixth and finally, for application • to any other purpose which the Authority, in its sole discretion, may determine." 5. An executed copy of this Agreement shall be filed with the County Auditor of Anoka County, as required by Min- nesota Statutes, Section 273.77(a) . 6. The Tax Increment Pledge Agreement shall remain in full force and effect in accordance with its terms, as amended by this Agreement. 7. This Agreement shall become effective upon the actual issuance and delivery of the Series 1986 Bonds. IN WITNESS WHEREOF, the City and the Authority have caused this Agreement to be duly executed as of the day and year first above written. CITY OF FRIDLEY, MINNESOTA By Its Mayor ATTEST: By Its City Manager City Clerk (SEAL) HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By Its Chairman By Its Director - 3 - 13 CITY OF FRIILEY AQJSING AND REDEVELOPMENT AUTHORITY TO: CHAIRFAN COMMERS AND ARA COMMISSION MEMBERS FROM: NASIM M. QURESHI, ARA DIRECTOR SUBJECT: SELECTION OF A VICE-CHAIR 10 'IBE HRA DATE: AUGUST 7, 1986 It has been customary throughout the existance of the BRA to have both a Chairperson and a Vice-Chairperson. The Vice-Chair is selected to assume the responsibilities of the Chairperson in his or her absence. Elmars Predities served as the Vice- Chairman of the BRA until his term expired this June. It is now up to the menbers of the BRA to select a new Vice-Chair. Therefore, as per the July 10, 1986 request frau Chairman Commers, this action has been placed on the agenda for the August 14, 1986 meeting. 14 FR I DLEY EOJS I NG AICD REDEVELOPMENT AUTHORITY MEMORANDUM TO: CHAIRMAN COWERS AND HRA OONMISSICN NENBERS FROM: NAS I M M. (MESH I, ISA D I RECTOR SUBJECT APPO I N1NENT OF HRA EXECUTIVE D I RECTA DATE: JULY 31, 1986 As PER THE AGREEMENT BETWEEN THE ERA AND THE CITY OF FRIDLEY RELATING TO STAFF SERVICES FOR THE ISA DATED SEPTEMBER 13, 1979, IT IS NECESSARY FOR THE AUTHORITY TO REVIEW AND APPROVE THE SELECTION, BY THE DIRECTOR, OF AN EXECUTIVE DIRECTOR TO THE HRA. ON MARCH 31, 1986, JOHN "JOCK" ROBERTSON WAS HIRED AS THE CITY' S DIRECTOR OF COMMUNITY DEVELOPMENT. HE HAS NOW ASSUMED THE JOB RESPONSIBILITIES FORMALLY HELD BY JERRY BOARDMAN, WHO ALSO SERVED AS THE EXECUTIVE DIRECTOR OF THE HRA. DUE TO JOCK'S ROLE IN THE DEVELOPMENT ACTIVITIES OF THE CITY, IT IS MY RECOMMENDATION THAT THE MEMBERS OF THE AUTHORITY APPROVE HIS APPOINTMENT AS THE EXECUTIVE DIRECTOR OF THE HRA. PLEASE FIND ENCLOSED A COPY OF THE AGREEMENT FOR STAFF SERVICES BETWEEN THE CITY AND THE HSA WHICH EXPLAINS THE SELECTION PROCESS FOR AN EXECUTIVE DIRECTOR, AND A COPY OF JOCK'S RESUME WHICH PROVIDES ADDITIONAL BACKGROUND INFORMATION. CONTRACT FOR STAFF SERVICES FOR THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY THIS AGREEMENT, entered into this 13th day of Septe. er 1979, by and between the City of Fridley, a municipal corporation, hereinafter referred to as City, and the Fridley Housing and Reder'lop- aient Authority, a public corporation organized under the laws of the State of Minnesota, hereinafter referred to as Authority. WHEREAS, the Authority desires to engage the City to render certain technical advice and assistance in connection with the activities and projects of the Authority. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein set forth, the Authority and the City hereby agree as follows: - 1. Scope of Services To Be Supplied by Fridley: Fridley shall furnish to the Authority all necessary services required by the Authority and as called for by the Authority, including but not limited to, furnish- ing the -services -of-a Director, an Executive Director, Finance Director, Engineering Staff, Planning Staff, Attorney, and Secretary (all hereinafter called "Services"), and related equipment as below described and referred to (all hereinafter called "Equipment"). a. The Director shall be the Fridley City Manager. He shall have responsibility for the general supervision of the projects of the Author- ity and supervision of the personnel of Fridley who are to furnish ser- vices to the Authority pursuant to this agreement. He shall perform, or have performed, such activities as the Authority shall from time to time reasonably request. He shall be responsible for the care and custody of all funds of the Authority and for the deposit thereof in the nacre of the Authority in such bank or banks as the Authority from time to time shall designate; for the keeping of regular books of accounts showing re- ceipts and expenditures; for budget and budgeting activities; for rends-i-j to the Authority, as requested by the Authority, of an account of t'r in- come and expenses of the Authority; for rendering such addition: finan- cial and other reports as the Authority from time to time shall request. _. .......w.w�.,.e�.+..�...-e..+�+...w.....�nsw.=...,....4 •,,.w..a... .�..w...-r:, r.rw.,.,u7,,.9asMNii.+ 14E b. The Executive Director shall be that person designated by the Director and approved by the Authority. He shall perform all duties required by the Director. including, but not limited to, the following: coordinating and supervising all aspects of the planning and redevelopment of projects of the Authority, including work of and between consultants. contractors, and other employees of Fridley who are to provide services to the Authority pursuant to this agreement; supervising and coordinating with, answering, and acting on requests of, and meeting with repre , iiLati+tt, of. other units of government; meeting with rn� 1aca1 coni:'vnity groups and residents; keeping of the records of the Authority; acting as ' secretary at meetings of the Authority; recording all votes and keeping the seal of the Authority; and all other duties properly and reasonably requested by the Director. c. The Finance Director shall be the Finance Director of Fridley, and shall perform all duties required by the Director, including, but not limited to, the following: Preparation and maintenance of all financial books and records, and supervision of the disbursements of funds; preparation of periodic reports reflecting income and expenditures; internal audits, and other checks and revisions of the financial status of projects; maintenance of all payroll, related accounts, including documentation of amounts to be billed under the terms of this contract; and all other duties necessary to the financial administration of the Authority and its projects. d. The Engineering Staff shall consist of the Engineer of Fridley and his staff, and shall perform all duties required by the Director, including. but not limited to, the following: All engineering work necessary to the timely and successful completion of all work needed in connection with Authority projects and not contracted for by the Authority' with other engineering consultants or contractors; coordination of all engineering work; public works recommendations; review of plans and specifications for project improvements prepared or submitted by consultants or contractors; preparation of plans and specifications for all public ir- provement projects; and review and recommendation on all plans as they may relate to streets. highways, sidewalks. alleys, utility services, and construction techniques. -2- 1 4 C e. The Planning Staff shall consist of the Planning Staff of Fridley, and it shall perform all-duties required by the Director, in- cluding but not limited to. the following: All planning work necessary to the timely and successful completion of all Authority projects; co- ordination of all planning work; and review and recommendation on all plans as they relate to land use, land controls. and other general plan- ning activities. f. The Attorney shall be the Attorney of Fridley, and his as- sistants, and shall perform all duties required by the Director, in- cluding but not limited to, the following: All legal work necessary to the timely and successful completion of the projects of the Authority; drafting and reviewing contracts; rendering legal advice and opinions on matters relating to the projects, when required by the Authority; at- tending meetings of the Authority; and assuring that their activities in relation to the projects activities are in conformance with local, State and Federal Law. g. The Secretary shall be any one of the secretaries made available from time to time by the Director for use of the Authority from the personnel of Fridley and shall perform all duties required of the posi- tion, including but not limited to, the following: Taking of dictation; doing typing and filing for any of the Authority's administrative staff; taking minutes and keeping records of meetings of the Authority, public hearings, and staff meetings as required by the Director or Executive Director; and any other secretarial work necessary to the timely and successful completion of the Authority projects, as required by the Director or Executive Director. h. Equipment shall include office space, supplying of normal daily business postage and office supplies, use of telephone and telegraph and reproduction equipment. car expense, travel expense, and such other items as from time to time may reasonably and properly be needed by the Authority and as Fridley may then agree to provide. 2. Payment. The Authority shall pay to the City for services pro- vided hereunder the actual cost of wages and benefits thereon of ec- ployees furnished by the City and such other costs as office supplies, sundry materials. photocopy and printing charges, vehicle charges, all to be paid for by the Authority at the City cost plus space and occupancy charges at the currently prevailing rate and futher plus use charges for -3- 14D 1 office furniture and equipment based on a reasonable depreciation schedule. In addition to the actual cost of services provided under this agreement, the Authority shall pay the City for overall admini- strative expenses not to exceed five (5%) per cent of the salaries of the personnel services assigned to the Authority. 3. General Provisions. A. Any of the work product, drawings, designs, applications. and other materials prepared by the professional and clerical staff on the Authority shall remain the property of the Authority. B. The City shall make available to members of the Authority staff as appointed by the City Manager pursuant to this agreement reasonable space for the performance of their work. Such reasonable space shall include the use of typewriters and equipment of the City and filing cabinets. C. Liability for Injury or Damage. The City does not assume any responsibility or liability for the acts or omissions of the officers, employees, or agents of the Authority ap- pointed pursuant to this agreement who in the performance of work for the Authority have done something which gives cause or rise to any claim for damages. In this regard, it shall be the responsibility of the City, together with the Authority, to ensure that any insurance policies and workmen's compensation policies provide coverage for the professional and clerical staff and commissioners when doing work for the Authority. D. Amendments. This agreement may be amended or modified at any time by written agreement between the parties heretc. Such amendment or modification may be made by either party by giving two weeks (14 days) written notice to the other party of the intended modification. When accepted by the other party, the amendment or modification shall becore binding as if a part of this agreement. -4- 111; E. Minnesota Law to Govern. This agreement shall be governed by the laws of the State of Minnesota. F. Term of Agreement. The terms of this agreement shall be perpetual. • G. Entire Agreement. This agreement, when executed. shall be the entire agreement between the parties for the sharing of services and equipment. H. Cancellation. In the event the Authority is not satisfied with service of the Executive Director. to be provided hereby, it may request the City Manager, by giving thirty (30) days written notice, to replace the Executive Director serving the Authority. The Authority or City may cancel this agreement, by giving written notice to the Manager at least ninety (90) days before such action is to be taken. IN WITNESS WHEREOF. the City and the Authority have executed this agreement this 13th day of September . 1979. FRIDLEY MOOING AND REDEVELOPMENT AUTHORIT By: . Its Chairperson iler AND .../d 4.001111 Its Executive Director CITY OF FRIDLEY t)1' /J4c3By: • Ityor AND I.� '{ Its Manager —5- I1W JOHN L. (JOCK) ROBERTSON 2409 Russell Avenue South Home: 377-6109 Minneapolis, Minnesota 55405 Office: 647-9421 CAREER OBJECTIVE To use my professional experience to direct and coordinate the healthy growth and development of a community QUALIFICATIONS Eighteen years of successful management experience in: • Economic development programming. promotion, and coordination • Comprehensive community planning and code enforcement • Development services to business, industry and housing • Inter—governmental communication and coordination • Public information and community relations EDUCATION M, A. — Urban Planning and_Development, University of Washington - -Architecture, University of Minnesota -Certificate — Basic Economic Development Course, University of Arizona Certificate — Real Estate I and II, Prosource Education. Minnesota ACHIEVEMENTS Directed the growth of a national economic development business that locates new industries in client communities. Financed, organized and implemented a private community—wide energy conservation program for small business owners. Directed proposal preparation, planning, operations. and negotiations for several governmental and private business organizations. Assisted architecture, engineering and legal firms with designing various development projects to fit the needs of communities. Developed and implemented plans to coordinate industrial and institutional expansion with surrounding residential and retail areas. Created and managed community information programs of newsletters, media relations, AV programs, interest group negotiations, ant survey research. 14G EXPERIENCE President - International Development Consultants, Inc., Minneapolis. Chicago, Pittsburgh, Kansas City, and Sarasota. (1983-to present) Responsible for directing growth and operations of national economic development marketing network for over thirty client cities and business park developers. Evaluate client's economic development and marketing programs for effectiveness. Firm has located 11 new industries since 1983, using combinations of incentives including SBA loans, job training grants, IDB's, and Tax Increment Financing. Recently located the new Dataforms, Inc. plant of 55 thousand square feet and 65 employees in Chaska, Minnesota. Supervise five Principals in preparing competitive proposals, marketing brochures, display ads, training seminars for citizen committees, and audio- visual presentations. Administer financial planning including cash flow forecasts and financing alternatives. Make presentations and lead discussions with state and local government bodies, and business and professional groups. Chairman - Energy Account Managers,_ .Inc_, St. Paul. (1933 to 1986) ' Responsible for preparing successful grant proposal, planning, development. financing and marketing of energy auditing and design services for assisting small business owners in reducing electricity and gas bills. This program was part of the City of St. Paul Business Revitalization Program. Adr.inist-ered business and financial planning, data processing and equipment time-sharing. Supervised activities of two professionals and 8 interns. Also wrote and edited grant proposals, and made written and oral presentations to governmental agencies such as city councils, state agencies, and legislative committees. President - Robertson & Associates, Inc. , Minneapolis. (1978 to 1984) Responsible for serving business and government organizations on various development projects including: - Nebraska Public Power District - Housing needs and tax revenue created by the proposed 500KV powerline development project. - Boisclair Corporation - Urban design and historic preservation recommendations for its "Riverplace" residential and commercial development. - Barr Engineering Company - Water and related land resources planning capabilities of Minnesota counties. - Federal Emergency Management Agency. Chicago - Flood hazard reduction recommendations for housing and retail districts in cities such as Fort Wayne. Indiana that were in the process of recovering from. recent floods. - Crowell and Moring, Attorneys. Wash. ,D.C. - Evaluations of all local government comprehensive plans and zoning ordinances in three state area for applicability to the Nebraska Public Power District project. 2 144 Manager, Special Projects - Upper Mississippi River Basin Commission, ooini ngton,-}fi nnesota. (1978 to 1981 ) Responsible for preparing and managing a comprehensive public participation and information project to generate public awareness of planning and management issues and to provide public recommendations to the Commission. Supervised three professionals and wrote and edited the Commission's quarterly newsletter, "Mississippi Issues". planning progress reports, and contributed articles for other publications. Served as Executive Director of the Public Participation Committee, and administered surveys of public attitudes on management issues. Prepared successful grant application and work program to recommend non- structural methods. including zoning, to reduce flood damages in residential and business areas along the Meramec River in suburban St. Louis. Also prepared and supervised implementation of PERT event-logic network to administer the Co'-;arehensive Master Plan program for land use. transportation, and environmental management by 10 Federal Agencies and 5 states. _vice Presi_dent, Planning_Director - National Biocentric, Inc. . Roseville, Minnesota, (1976 - 1978) Responsible for marketing and performance of planning and management consulting services on land use, transportation, utilities, and environmental projects for government and businesses. Supervised a staff of four professionals in preparing grant applications, proposals, and technical work. Relevant clients and projects include: - Hennepin County VTI - Site selection evaluation for third campus project. - Mercer County, North Dakota - Comprehensive planning and growth management recommendations for communities impacted by three power plant developments. - Minnesota Department of Economic Development - Cost/Benefit analysis of VTRAK service on the City of Duluth. - Grand Trunk Railroad, Michigan and Ohio - Evaluation of proposed changes in railyard operations on adjacent residential and commercial areas in several communities. Planning Director, Enviromental Management - Minnesota State Planning Agency, (1973 - 1976) -- - --- _. Responsible for environmental management operations including Crital Areas, Environmental Impact Analysis, Power Plant and Transmission Siting, and Permit Coordination. Supervised three Program Directors with staffs totaling nine professional planners and engineers in preparing policy recommendations, proposed regulations, and coordination with state agencies and local governments. Also prepared and presented briefings, including audio-visual productions for legislative commitees, local governments and citizen groups. Assistant Director - Washington State Land Planning _Commission_ . (10-i-:=79-73) Responsible for land development planning and zoning recommendations and design of state-wide land information service for use by local governments and state agencies. Supervised staff of three, and conducted information sessions fo- state legislators, local governments, and pressure groups. 3 14I Ri�e�g�ional Planner — Puget Sound Govern 1onferenre, (1969 —.1971 ) Responsible for preparation of development plan for the four—county Seattle metropolitan region, based on adopted local government comprehensive plans and ordinances and on state and regional recreation and open space policies. Managed a region—wide citizen participation program including workshops for local government officials and citizen groups. Supervised two interns. Principal--Plnnner — Snohomish County, Washington, (1967-1969) Responsible for preparation and implementation of comprehensive plan and development ordinances for communities impacted by new Boeing 747 plant. Supervised staff of six professional planners, and coordinated code enforcement activities of building departments, zoning boards, and other municipalities. Also evaluated planned residential development proposals and negotiated desired development improvements with developers. Assistant Planner — Seattle Planning _Commission, (1965 — 1967) Member of first neighborhood planning team for residential and retail areas impacted by growth of the university campus and by the downtown medical center. Participated in public information workshops. 1 Instructor, Part Time — University of Washington, (1967 — 1973) and I Pacalester College, (1975 — 1986) ! Responsible for conducting courses on urban planning, land use regulation, and real estate development for community leaders, college students and professionals. MEMBERSHIPS American Economic Development Council American Institute of Certified Planners Minnesota Chapter, American Planning Association Sigma Tau Delta Honorary Society in Architecture REFERENCES Dale Ahlquist, Chaska Investment Co. Jeff Davidson, Crowell & Moring, Ltd. 7401 Metro Blvd. , Suite 315 1100 Connecticut Ave. N.W. , S. 1200 Edina, MN 55435 Washington, D.C. 20036 612/835-4111 202/452-4158 David A. Lanegran, Chairman State Representative Way a Simoneau St. Paul Planning Commission and 23; State Office Building Macalester College Geography St. Paul, VI% 55155 612/595-6126 612/296-4331 4 14J • SALARY HISTORY AND REQUIREMENTS John L. (Jock) Robertson Based on my last ten year earnings history, as outlined below, I require a minimum salary of $40,000 per year. President- International Development Consultants, (1983 to present) Base salary of $24,000, plus expenses, plus performance bonus, up to a total of S48,003 per year. Chairman- Energy Account Managers, Inc. (1983 to 1986) Chairman serves at no salary, only expenses. President- Robertson & Associates, Inc. (1978 to 1984) Salaried varied from $21,000 to $47,000, plus expenses, per year. Manager, Special Projects- Upper Mississippi River Basin Commission, (1978 to 1981 ) Salary increased from $27,000 to $31,000, plus expenses. Vice President, Planning Director- National Biocentric, Inc. (1976 - 1978) Salary was $26, 000 plus expenses. Planning Director, Environmental Management- Minnesota State Planning Agency. (1973 to 1976) Salary increased from $21 ,000 to $25,000, plus expenses. 1�K PUBLICATIONS John L. (Jock) Robertson "Case Study: How a Company Selects a Site," Paper presented at Minnesota Star Cities Conference, May 15, 1984. - "Socioeconomic Consequences" (of proposed MANDAN 500KV powerline) Environmental Report - MANDAN Project. Columbus: Nebraska Public Power District, 1983. "Small Business Energy Savings," St. Paul : Macalester Resource Management Center, 1983 Editor, Manacling Hazardous Material Accidents, St. Paul , Robert Hamilton and Associates, 1982. (With Roy E. Peterson, ) Assistance in Preparation of a Local Planning Handbook for Use by County Officials in Local Water and Related Land Resources Planning, Minneapolis, Barr Engineering Co. , 1962. ( Individual Reports) "Flood Hazard Reduction Recommendations for: City of Fort Wayne and Allen, LePorte and Starke Counties, Indiana; Berrian and Monroe Counties, Michigan; and City of Napoleon, Ohio," Chicago, Federal Emergency Management Agency, Region V, 1982. (With Mary E. Morris and Ronald M. Sommer) Citizen Review Council Policy Delphi on Alternative Institutional Arrangements for Management of the Upper Mississippi River System, Minneapolis, Upper Mississippi River Basin Commission, 1981. "Tne Potential for Conflict Resolution," Naturalist, Vol. 32, No. 1, Spring 1961 . Editor, Mississippi Issues: Upper Basin Views and Previews, quarterly newsletter, Minneapolis, Upper Mississippi River Basin Commission, 1979 to 1962. (With Selina Bendix, et. al . ) Environmental Assessment: Approaching Maturity, Ann Arbor, Ann Arbor Science Publishers, 1978. (With Mentor C. Addicks) "Cities Get New State Environmental Options," Minnesota Cities, Vol . 61, No. 13, December 1976. "The Minnesota Critical Areas Program," Data Needs and Data Gathering Areas of Critical Environmental Concern: Part 2, University of Wisconsin, Madison, Institute for Environmental Studies, 1975. (With Hugh W. Calkins and Susan Wierman) "The Legislative Mandate for State Land Information Systems," Perspectives on Information Systems, Stockton, Urban and Regional Information Systems, 1974. Course of Study for Social Science 150, An Introductory Course for the Citizen Planner, Tacoma, The Planning Association of Washington and Tacoma Community College, 1974. (With Richard U. Chapin and Ronald L. McConnell ) "Washington: The Legislative Land Planning Commission," State Government XLVI , Summer, 1973. 14L Land Planning Information: A Call for Coordination and Compatibility, Olympia, Washington State Land Planning Commission, 1973. Interirr Regional Development Plan, Seattle, Puget Sound Governmental Conference, 1971. (With Einar M. Syvertsen, et. al . ) Environmental Planning in the Central Puget Sound Region, Seattle, Puget Sound Governmental Conference, 1969. (With Myer R. Wolfe and Hiram Walker) "Regional Corridor Impact Analysis: The Mohawk Valley and Piedmont Crescent," Community Consequences of Highway Improvement, Seattle, National Cooperative Highway Research Program, 1966. (With Thomas J. Norton) "Recommendations for the Establishment of Additional Scenic Areas in Washington," Ekistics, Vol . 19, No. 115, June 1955. 15 CITY OF FRIILEY HQJSING AND REDEVFLOMENT AUMORITY MEMORANDUM • 70: CHAIRMAN COMMERS AND BRA ODMMISSICN MEMBERS FROM: NAS IM M. QURESH I, BRA DIRECTOR SUBJECT: CONSULTANT B ILL 1NG FOR UNIVERSITY AVE. CORRIDOR STUDY LATE: AUGUST 7, 1986 On May 8, 1986, the BRA approved the selection of the firm of Barton-Aschman to undertake the University Avenue Corricbr Study. The maximun compensation was set at $26, 250. The attached mem from Barton-Aschman is a clarification of the July billing. The breakdown of costs to date is: • Max. Compensation $26,250 Costs billed to date 3,879 Contract amount remaining $22,371 I 5,4. Barton-Aschman Associates, Inc. 612-332-0421 1610 South Sixth Street Minneapolis, Minnesota 55454 MEMORANDUM TO: Mr. Jock Robertson FROM: Elizabeth R. Rauenhorst IATE: July 30, 1986 SECT: CONSULTANT BILLING FOR UNIVERSITY AVENUE N.E. CORRIDOR STUDY Clarification of the July 16 billing for $3,879 is as follows: Total Hours Classification Billing Rate Cost 4.5 Senior Associate 68 $ 305 54.0 Associate 22 1,46 2,30 08 4 5 49.0 Technician $3,879 The amount billed was used fors development of Task II. An estimated breakdaan by product is as foll Task II - Product Time Used Foretell 85 98 A. 100 Scale Base Map B. Analysis Map 1 5 5 C. photos, Slides and Grapics 0 55 16 CLAIMS • 1488 - 1497 TO: FRIDLEY H.R.A. FROM: CITY OF FRIDLEY RE: BILLING FOR PERSONAL SERVICES FOR APRIL THROUGH JULY, 1986 PERSONAL SERVICES: April 3,959.06 May 5,678.73 June 5,532.85 July 7, 164. 18 August - part 2,728.42 TOTAL $25,063.24 OPERATING EXPENSES: Copier Alloc. 1st Qtr. JE 108 70. 15 Void Ck # 7887 (43.55) Void Ck # 7611 (114.33) Legal Notices 300.88 Postage 104.47 Heat 2.45 MIS data charges 1 ,836.32 -Copier Alloc. 2nd Qtr. JE 204 104.65 TOTAL $2,261.04 SUB--TOTAL $27,324.28 JOB-CODE: 1108 PERSONAL SERVICES: Jan-June 955.73 TOTAL $955. 73 OPERATING EXPENSES: Office Inv Alloc 40.39 Presentation Bag 34.77 TOTAL $75. 16 SUB--TOTAL $1 ,030.89 GRAND TOTAL-- $28,355. 17 FAY DATE NAME 236 • HOURS PAY LEAVE INSURANCE PENSION TOTAL 4-11 Shirley Haapala 31 6.0 85.84 9.01 94.85 Nasim Oureshi 31 2.0 56.67 6.46 63. 13 Julie Burt 31 8.0 96. 09 10.95 107.04 Elsie Hanscom 31 3.0 25. 15 2. 64 27. 79 Rick Pribyl 31 8.0 164.20 18.49 182. 69 Judy Welch 31 16.0 139. 16 15.87 155.03 John Flora 31 7.0 171. 14 19. 39 190.53 Rick Pribyl 32 8.0 164.20 18.49 182.69 John Flora 32 11 .0 268.93 30.48 299.41 Nassim Qureshi 33 1.0 28.34 3. 23 31. 57 John Flora 33 5.0 122. 24 13.86 136. 10 Julie Burt 37 4.0 48.05 5. 49 53. 54 Rick Pribyl 37 8.0 164. 20 18.49 182.69 4-25 Shirley Haapala 31 12. 8 137.34 14. 42 151 . 76 Nasim Oureshi 31 2.0 56.67 6.46 63. 13 Elsie Hanscom 31 3.0 25. 15 2.63 27. 78 Rick Pribyl 31 8.0 164.20 18.72 182. 92 Judy Welch 31 11 .7 101 .79 11.61 113. 40 John Robertson 31 17.0 325. 67 37. 13 362.80 Nasim Oureshi 32 2.0 56. 67 6.46 63. 13 Rick Pribyl 32 8.0 164. 20 18.72 182. 92 John Flora 32 8.0 195.59 22.29 217.88 Nasim Oureshi 33 1 . 0 28.34 3.23 31. 57 John Robertson 33 19.0 363.98 41 . 50 405. 48 Nasim Qureshi 37 1 .0 28.34 3.23 31 . 57 Rick Pribyl 37 8.0 164.20 18. 72 182. 92 John Robertson 37 11.0 210. 73 24.01 234. 74 5-09 Shirley Haapala 31 12.8 137.34 14.42 151 .76 Nasim Oureshi 31 3.0 85.01 9. 69 94. 70 Elsie Hansoce 31 2.0 16.77 1 . 76 16.53 Rick Pribyl 31 8.0 164.20 18.49 182. 69 Judy Welch 31 14.0 121.77 13.88 135.65 John Robertson 31 17.0 325. 67 37. 13 362. 80 John Flora 31 23.0 562.31 63.74 626. 05 Nasim Qureshi 32 3.0 85.01 9.69 94. 70 Rick Pribyl 32 6. 0 164.20 18.49 182. 69 John Robertson 32 1 .0 19. 16 2. 18 21 .34 John Flora 32 11.0 266.93 30.48 299. 41 Nasim Oureshi 33 3.0 85.01 9. 69 94. 70 John Robertson 33 13.0 249.04 28.39 277. 43 John Flora 33 2.0 48.90 5.54 54. 44 Rick Pribyl 37 8.0 164. 20 18. 49 162. 69 John Robertson 37 15.0 287..36 32.75 320. 11 5-23 Shirley Haapala 31 10. 3 109.87 11.54 121 .41 Nasim Oureshi 31 5.0 141 .66 16. 15 157. 83 Elsie Hanscom 31 3.0 25. 15 2.64 27. 79 Rick Pribyl 31 8.0 164.20 18.72 182.92 Judy Welch 31 16.0 139. 16 15.66 155.02 John Robertson 31 18.0 344.83 39.31 384. 14 John Flora 31 2.0 46.90 5.58 54. 48 Rick Pribyl 32 8.0 164.20 18.72 182. 92 John Flora 32 13.0 317.83 36.23 354.06 John Robertson 33 1.0 19. 16 2. 18 21. 34 A PAY DATE NAME 236 HOURS PAY LEAVE INSURANCE PENSION TOTAL Nasim Oureshi 33 2.0 56.67 6.46 63. 13 John Robertson 33 19.0 247.99 28. 27 276. 26 Nasim Oureshi 37 3.0 85.01 9. 69 94. 70 Rick Pribyl 37 8.0 164. 20 16. 72 182. 92 John Robertson 37 15.0 287.36 32.76 320. 12 06-13 Shirley Haapala 31 11 .2 120. 17 12.62 132. 79 Nasim Oureshi 31 4.0 113. 35 12. 92 126. 27 Elsie Hanscom 31 2.0 16. 77 1 .76 18.53 Rick Pribyl 31 7.2 147. 78 16.85 164. 63 Judy Welch 31 10.8 93. 96 10. 71 104. 67 John Robertson 31 21.0 402.30 45.86 448. 16 Nasim Qureshi 32 5.0 141 .68 16. 15 157.83 Rick Pribyl 32 7. 2 147. 78 16. 85 164.63 John Flora 32 6.0 146. 69 16. 72 163. 41 John Flora 32 2.0 48. 90 5.58 54.48 Nasim Qureshi 33 3.0 85. 01 9. 69 94.70 Rick Pribyl 37 7. 2 147.79 16. 85 164.63 John Robertson 37 17.0 325. 67 37. 13 362. 80 06-27 Shirley Haapala 31 12.8 137. 34 14. 42 151 . 76 Nasim Oureshi 31 6. 0 170.02 19. 39 189. 41 Elsie Hanscom 31 2.0 16. 77 1.76 18.53 Rick Pribyl 31 8.0 164. 20 18. 49 182. 69 Judy Welch 31 6.0 52. 19 5. 95 58. 14 John Robertson 31 11 . 0 214 .73 24.03 234. 76 John Flora' 31 6.0 146.69 16.62 163. 31 Rick Pribyl 32 8.0 164.20 18. 49 182. 69 John Robertson 32 3.0 57.47 6.55 64. 02 John Flora 32 14.0 342. 27 38.80 381 .07 John Flora 32 14.0 342.27 38.80 381 . 07 Donald Ososki 32 1 .0 12.89 1.35 14. 24 Rick Erickson pt 32 1.0 4. 25 0.06 4. 31 John Robertson 33 1 .0 19. 16 2. 18 21 .34 Nasim Qureshi 37 16.0 453.38 51.69 505. 07 Rick Pribyl 37 8.0 164.20 18. 49 182. 69 John Robertson 37 30.0 574. 71 65.51 640. 22 APR-MAY-JUNE TOTALS 13,628.75 1 ,541.89 15, 170. 64 07-11 Shirley Haapala 31 14. 6 125. 66 13. 19 138. 85 Nasim Qureshi 31 2.0 56. 67 6. 46 63. 13 Elsie Hanscom 31 2.0 16. 77 1.76 16. 53 Rick Pribyl 31 7.0 150.24 17. 13 167. 37 Judy Welch 31 16.0 139. 16 15.86 155.02 John Robertson 31 23.0 440.61 50.22 490. 83 Nasim Oureshi 32 8.0 226.69 25.85 252.54 Rick Pribyl 32 7.0 150. 24 17. 13 157. 37 John Robertson 32 6.0 114. 94 13. 10 128. 04 John Flora 32 30.0 733.45 83. 61 817.06 Nasim Qureshi 33 2.0 56.67 6.46 63. 13 ,gym: PAY DATE NAME 236 HOURS PAY LEAVE INSURANCE PENSION TOTAL John Robertson 33 7.0 134. 10 15. 29 149. 39 Nasim Qureshi 37 10.0 283.37 32.30 315. 67 Rick. Pribyl 37 7.0 150. 24 17. 13 167.37 John Robertson 37 13.0 249.04 28. 39 277. 43 07-25 Shirley Haapala 31 10.9 122.57 12.87 135.44 Nasim Qureshi 31 10. 0 283.37 32. 30 315.67 Elsie Hanscom 31 2.0 16.77 1.76 18.53 Rick Pribyl 31 4.0 36.20 9. 71 95. 91 Sara Ruth 31 16.0 145.59 16.60 162. 19 Judy Welch 31 8.0 69.58 7.94 77.52 John Robertson 31 10.0 191. 57 21 .84 213. 41 Nasim Qureshi 32 5.0 141 .68 16. 15 157.83 Rick Pribyl 4.0 86. 20 • 9. 71 95.91 John Flora 32 24.0 586. 76 66. 51 653. 27 Nasim Qureshi 33 5.0 141.68 16. 15 157. 83 John Roberts7..) 1. 0 19. 16 2. 18 21 . 34 Nasim Qureshi 37 44.0 566. 73 64.61 631 . 34 Rick Pribyl 37 4.0 86.20 9.71 95. 91 John Robertson 37 45.0 862.07 98.28 960. 35 03-08 Shirley Haapala 31 8.6 97.34 10. 22 107. 56 Nasim Qureshi 31 4.0 113. 35 12. 92 126.27 Elsie Hanscom 31 1 .0 8.38 0. 88 9.26 Rick Pribyl 31 7.2 155. 17 17.70 172. 87 Sara Ruth 31 8.0 72.80 8. 29 81 .09 Judy Welch 31 16.0 139. 16 15.86 155.02 John Robertson 31 28.0 5336.40 61 . 15 597. 55 Nasim Qureshi 32 2 .0 56. 67 6. 46 63. 13 Rick Pribyl 32 7. 2 155. 17 17. 70 172. 87 John Flora 32 11. 0 282.38 32. 18 314. 56 John Robertson 33 5. 0 95. 79 10. 92 106. 71 Nasim Qureshi 37 5.0 141.68 16. 15 157.83 Rick Pribyl 37 7. 2 155. 17 17.70 172. 87 John Robertson 37 23.0 440.61 50. 22 490.83 JULY-AUGUST TOTALS 8,884.05 1 ,008. 55 9,892.60 2ND QTR. TOTALS 22,512.80 2,550. 44 25,063. 24 08-14-86 CHECK REGISTER PAGE 1 FRIDLEY STATE BANK - HRA DESCRIPTION VENDOR INV. # ( AMOUNT 1 488 ***CHECK PREPAID*** qp1,11 FRIDLEY STATE BANK $486, 000. 00 INVESTMENT 1489 ***CHECK PREPAID*** STORER CABLE COMMUNICATIONS 5, 000.00 RELOCATION OF CABLE UNDERGROUND 1490 ***CHECK PREPAID*** CITY OF FRIDLEY 86, 864 . 80 REIMBURSEMENT COSTS FOR PHASE I 1491 ***CHECK PREPAID*** FIRST TRUST COMPANY OF ST. PAUL 124 , 573 . 87 BOND PAYMENT 1492 ***CHECK PREPAID*** COLUMBIA PARK PROPERTIES 10,000. 00 DEPOSIT REFUND 1493 ***CHECK PREPAID*** OLSON, GUNN & SERAN LTD.. 325.00 LEGAL SERVICES 1494 ***CHECK PREPAID*** C.E. LASALLE & ASSOCIATES 3 ,500,00 APPRAISAL FOR 100 TWIN THEATER SITE 1495 ***CHECK PREtAID*** FIRST BANK ST. PAUL 3 ,639.04 REMARKETING AGREEMENT 1496 ***CHECK PREPAID*** HERRICK & NEWMAN, PA. 4,441 , 18 LEGAL SERVICES THRU JULY, 1986 1497 ***CHECK PREPAID*** CITY OF FRIDLEY 38, 586.34 REIMBURSEMENT FOR PERSONAL SERVICES - OCT THRU DEC. 1984 & APRIL THRU JULY, 1986 TOTAL CHECKS $762, 930.20