HRA 03/08/1984 HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, MARCH 8, 1984 7:00 P.M.
CITY OF FRIDLEY
AGENDA
HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, MARCH 8, 1984 7:00 P.M.
Location: Council Chamber (upper level )
CALL TO ORDER:
ROLL CALL:
APPROVAL OF MINUTES:
Housing & Redevelopment Authority Minutes: January 12, 1984
(February 9, 1984 agenda)
APPROVAL OF AGENDA:
/
CHECK REGISTER APPROVAL 1✓ 1D ‘/
Motion to approve Check Registers
Motion to approve payment of P.O. No. 20287 for
legal fees to Herrick & Newman P.A. in the amount of $215.00
RESOLUTION DESIGNATING OFFICIAL DEPOSITORY FOR FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY 2
Motion to approve Resolution No. HRA 4-1984
FINANCIAL REPORT 3
ADJOURNMENT:
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY
MEETING
JANUARY 12, 1984
CALL TO ORDER:
Vice-Chairperson Prieditis called the January 12, 1984, Charter Commission
meeting to order at 7:42 p.m.
ROLL CALL:
Members Present: Elmars Prieditis, Carolyn Svendsen, Duane Prairie,
Walter Rasmussen
Members Absent: Larry Commers
Others Present: Jerrold Boardman, City Planner
Sid Inman, Finance Director
Dave Newman, City Attorney
Jerry Paschke, 7270 University Ave. N.E.
Mark Haggerty
Wally Rasmussen, 7806 Alden Way
APPROVAL OF NOVEMBER 10, 1983, HOUSING & REDEVELOPMENT AUTHORITY MINUTES:
MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO APPROVE THE NOV. 10, 1983,
HOUSING & REDEVELOPMENT AUTHORITY MINUTES.
Mr. Prieditis made the following change to paragraph 2, page 5: "Mr. Prieditis
stated the hardware building could even become a part of a future redevelopment,
but that is something that is difficult to predict at this time."
UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON PRIEDITIS DECLARED THE
MINUTES APPROVED AS AMENDED.
1 . CONSIDERATION OF AMENDMENT BY ENLARGEMENT OF REDEVELOPMENT PROJECT #1 :
Mr. Boardman stated that at the suggestion of the City Council , Staff looked
at the possibility of adding all the commercial property already vacant north
of Rice Creek to Redevelopment Project Area #1 . They did this and felt there
was good reason to add that property and are making that proposal to the HRA.
Mr. Prieditis asked Mr. Boardman to outline the benefits for adding this
property into Redevelopment Project Area #1.
Mr. Boardman stated the primary purpose for including this is with the
potential of IDB's going out. The reserve.bond fund is one of their biggest
resources at this point in time to promote development. The only way they
HOUSING & REDEVELOPMENT AUTHORITY MEETING, JANUARY 12, 1984 PAGE 2
can use reserve bond monies is if any property is located in a redevelopment
project area. It does not necessitate including that property in the tax
increment to use the funds for projects, but as long as it is in the project
area, they can use the reserve bond fund.
It is also important to note that this property is all presently vacant
property of which some has need for soil correction. This property has been
vacant through the growth years of the City and would probably not develop
without some financial aid being sought. By including this property into
the redevelopment plan, it will afford maximum opportunity, consistent with
the sound needs of the community as a whole, for development through private
investment. It also conforms to the general plan of the City for its develop-
ment.
MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO APPROVE RESOLUTION
NO. HRA 18-1983, "A RESOLUTION AMENDING REDEVELOPMENT PROJECT NO. 1 AND THE
REDEVELOPMENT PLAN RELATING THERETO PURSUANT TO THE PROVISIONS OF MINNESOTA
STATUTES, SECTIONS 462.411 TO 462. 716, INCLUSIVE".
UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON PRIEDITIS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
2. CONSIDERATION OF TAX INCREMENT #5 WITHIN DEVELOPMENT PROJECT NO. 1
Mr. Boardman stated this is strictly one lot within that overall package
in which they do have a proposed development. Mr. Jerry Paschke was pro-
posing a 26,000 sq. ft. commercial facility on Lot 1 , Block 2. As part
of the package, they have worked with Mr. Paschke in putting together some
assistance. This assistance is going to be similar to what was worked out
with Johnson Printing & Packaging, in which the HRA will provide $30,000
write-down on the land, and in return, Mr. Paschke will develop the property.
They use the assistance in the write-down to help cover their cost for soil
correction. There is about $60,000 worth of soil correction needed on that site.
This value was the result of the negotiation between the HRA, Mr. Paschke,
and the property owner. The soil correction costs were determined by soil
borings and actual bids on the correction.
The actual taxes that would be generated would be approximately $45,000 per
year. Other costs laid out in the tax increment plan include $30,000 in
administrative cost along with $310,000 in reserve increments for funding
the reserve system. The tax increment plan will give the HRA maximum flexibility
in the determination of all project costs.
MOTION BY MS. SVENDSEN, SECONDED BY MR. PRAIRIE, TO APPROVE RESOLUTION
NO. HRA 19-1983, A RESOLUTION ESTABLISHING TAX INCREMENT DISTRICT NO. 5
WITHIN REDEVELOPMENT PROJECT NO. 1 AND APPROVING AND ADOPTING A PROPOSED
TAX INCREMENT FINANCING PLAN THEREOF".
UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON PRIEDITIS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, JANUARY 12, 1984 PAGE 3
3. PUBLIC HEARING ON SALE OF PROPERTY AT 7820 UNIVERSITY AVENUE N.E. :
Mr. Boardman stated that because state law requires a public hearing on
the disposal of HRA property and the contract documents between Mr. Paschke
and the HRA call for such a sale, they have called for a public hearing at
this meeting. In this way, it can be considered with the "Contract for
Private Development" with Mr. Paschke on this site.
Vice-Chairperson Prieditis declared the public hearing open at 7:59 p.m.
Mr. Boardman stated this would be a sale of property to Mr. Paschke.
The HRA would be acquiring the property from Dave Harris and Bob Schroer.
The purpose of the sale is to develop a 26,000 commercial facility.
Mr. Boardman stated if there were any comments or questions from people in
the audience, they would hear them at this time.
Mr. Prieditis asked Mr. Paschke to explain his proposal.
Mr. Paschke stated he will be building a building identical to the two
buildings he has built just to the north on 79th. The primary use of the
building will be commercial. The value of the structure, land and improve-
ments will be approximately $1 ,000,000.
Ms. Svendsen asked if there would be any other costs other than the $30,000.
Mr. Boardman stated the $30,000 is the cost that is laid out in the tax
increment plan with reserve increments of approx. $310 with an administrative
cost of about $30,000. Those are the HRA's actual costs on the project.
Ms. Svendsen asked Mr. Boardman if he had included any information about
the soil correction or the condition of the soil. Sometimes in the past,
the HRA has had documents from the City regarding soil conditions, and she
had not seen any of that kind of information on this project.
Mr. Boardman stated he did not include the actual bids. He stated the City
had been given some bids on the excavation of the soil ; then the cost was
negotiated between the City, the existing property owner, Mr. Paschke,
and Mr. Jim Benson, where each of the people took a share of the cost to
come up with the cost of soil correction.
Mr. Prieditis asked what assurances does the HRA have to ensure the
correction of the soil?
Mr. Boardman stated the developer cannot get a building permit until they
show the soil borings, compaction tests, etc. In due process, the building
inspectors review all these things.
Mr. Paschke stated soil borings have been done. There were about 16 borings,
and the City does have those borings and all the bids. The bids were all
submitted to the City by Dave Harris and Bob Schroer. The borings were done
by Suburban Engineering.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, JANUARY 12, 1984 PAGE 4
Mr. Prairie stated it might be helpful for the HRA to see some of those
documents.
Mr. Ebardman stated he would get copies of the bids for the HRA.
Vice-Chairperson Prieditis declared the public hearing closed at 8:10 p.m.
4. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN HRA AND PACO INC. :
Mr. Boardman stated that at this meeting the HRA members had received the
modified copy of the Contract .for Private Development". Jim O'Meara and
Mr. Paschke' s attorney, Mr. Bob Lukes, went over these documents and agreed
to what was in the documents. The modifications were made and sent out that
morning. He stated he had underlined those changes from the previous docu-
ments. He also stated the HRA Attorney felt this gives the HRA adequate
protection and the HRA can enter into those contract documents.
MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO APPROVE RESOLUTION
NO. HRA 20-1983,"A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF
A CONTRACT FOR PRIVATE DEVELOPMENT WITH PACO INC.".
UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON PRIEDITIS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
5. DISCUSSION ON HARDWARE BUILDING:
Mr. Boardman stated John Gargaro had contacted him after the Nov. 22
Lions Club meeting indicating that the Lions were no longer interested in
the hardware building.
Mr. Boardman stated he had had several discussions with Mr. Inman and
Mr. Qureshi , and the Liquor Store Manager, and they have indicated an interest
in renting the hardware building. He stated Mr. Inman would explain their
proposal.
Mr. Inman stated one of his other responsibilities in the City is for the
operation of the liquor store. He stated the liquor store has maintained
a substantial marketing advantage over the years because of the natural
boundaries like the river, 35W, and I-694. With the droppage of walk-in
traffic at Holly Center, they have experienced the same profit margin but
a reduction in volume, so they are still in a positive position.
Mr. Inman stated Staff has recently discovered that some of the neighboring
communities will soon be building liquor warehouse operations. Their studies
indicate that while people may not be willing to drive downtown to Surdycks
to get lower prices, they may be willing to go to Spring Lake Park or Blaine.
So, Fridley's attempt here is to be the first and open a liquor warehouse
operation in the hardware building.
Mr. Inman stated the experiment would be in terms of at least a 3-year
commitment. They have done some cost structures. There have to be some
decisions on the carpeting and ceiling, and they may want to improve the
road in front.
HOUSING & REDEVELOPMENT AUTHORITY MINUTES, January 12, 1984 PAGE 5
Mr. Inman stated that right now they have a lease situation in Holly. Their
early projections say that depending on their volumes, they will probably
do as good in the hardware building as they do in Holly, because of the
heavy expenditures of maintaining both facilities. They might attempt to
negotiate with Mr. Levy and try to help find somebody else to rent the space
in Holly.
Mr. Prairie asked how the other tenants in Holly felt about this possible
move.
Mr. Inman stated they have not officially.informed the other tenants; however,
the other tenants are aware of the fact that every business in that strip is
losing money at the current time.
Mr. Rasmussen stated he thought having a liquor warehouse operation in
the hardware building was a great idea. He thought it was very feasible
if a reasonable price can be negotiated.
MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, INDICATING THAT THE HRA
IS INTERESTED IN EXPLORING THE POSSIBILITY OF A LIQUOR WAREHOUSE FACILITY
IN THE HARDWARE BUILDING AND AUTHORIZES THE EXECUTIVE DIRECTOR TO PRESENT
FURTHER INFORMATION ON THIS AT A LATER MEETING.
UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON PRIEDITIS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Mr. Prairie stated he thought they were all interested in putting that
building to use, but his only concern was how this might affect the tenants
in Holly Center.
6. CONSIDERATION OF AUTHORIZATION FOR STAFF TO ENTER INTO A LISTING AGREEMENT
FOR LIFESTYLE AND MADSEN BUILDINGS:
Mr. Boardman stated he had attached listing agreements submitted by Mr.
Messier. Mr. Messier was one of the three realtors he contacted for the
leasing for the HRA. The other two were not interested in listing the
properties. He stated he was not looking for the authorization to enter
into any of these documents, but he was looking for the authorization to move
ahead and to try to negotiate an agreement with a leasing agent within the
approximate guidelines of the enclosed documents.
Mr. Boardman stated he has gotten a response back from another agent that
there is no reason the HRA should have to enter into an exclusive listing
agreement, so he wanted to check into that. He would not enter into an
exclusive if he did not have to.
Mr. Boardman stated the reason Mr. Messier is the only one interested is
because he is the leasing agent for Dr. Suh across University. He knows the
area and may have the possibility of putting people in. Mr. Messier said
it is going to be extremely difficult and the only way he will do it is
with a guaranteed price and not as a percentage of the lease. Mr. Messier
would also request that the HRA be flexible with the dollar amount that he
will be able to get for the property.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, JANUARY 12, 1984. PAGE 6
Mr. Boardman stated they have been negotiating and trying to get the property
north of City Hall into a package, and they would not want to restrict them-
selves to more than a one year lease,so it is going to be very difficult.
MOTION BY MS. SVENDSEN, SECONDED BY MR. RASMUSSEN, TO AUTHORIZE THE EXECUTIVE
DIRECTOR TO CONTINUE TO TRY TO NEGOTIATE AN AGREEMENT WITH A LEASING AGENT
FOR THE LIFESTYLE AND MADSEN BUILDINGS.
UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON PRIEDITIS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
7. CONSIDERATION OF APPROVAL OF PAYMENT OF THE SETTLEMENT TO DR. RYAN'S
AUTOMOTIVE CLINIC AS PER COMMISSION FINDINGS:
Mr. Boardman stated Mr. Ryan has agreed to accept the Commissioner's Award.
The Commissioner's Award was $177,300. The previous payment to Mr. Ryan
was $137,117, leaving a balance of $40,183. He stated they plan to close
on Monday, Jan. 16, and the actual approved interest for that period of
time will be $1 ,182. He stated that under Minnesota State Law, they are
required to pay interest at a rate of 6%. He stated he is asking for
authorization from the HRA to pay Mr. Ryan the final payment per Commissioner's
Award of $40,183 plus $1 ,182 interest.
MOTION BY MR. PRAIRIE, SECONDED BY MR. RASMUSSEN, TO AUTHORIZE THE FINAL
PAYMENT PER COMMISSIONER'S AWARD OF $40,183 PLUS $1,182 IN INTEREST, TOTALLING
$41,365, TO DR. RYAN'S AUTOMOTIVE CLINIC.
UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON PRIEDITIS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
8. CONSIDERATION OF APPROVAL OF PAYMENT TO DR. RYAN'S AUTOMOTIVE CLINIC
MR RELOCATION:
Mr. Boardman stated that also under Minnesota State Law, they are required
to pay relocation on any activity. They have finally gotten all the informa-
tion on the relocation for Mr. Ryan, and Von Klug & Associates are recommend-
ing a payment of $10,000 to Mr. Ryan for relocation as allowed to him under
state law.
MOTION BY MR. RASMUSSEN, SECONDED BY MS. SVENDSEN, TO AUTHORIZE A PAYMENT OF
$10,000 TO DR. RYAN'S AUTOMOTIVE CLINIC FOR RELOCATION.
UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON PRIEDITIS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
9. CONSIDERATION OF APPROVAL OF FINAL PAYMENT TO VON KLUG & ASSOC. FOR
BUSINESS RELOCATION SERVICES:
Mr. Boardman stated he needed authorization for the final payment of $3,500
to Von Klug & Assoc. for their relocation services.
MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO AUTHORIZE THE FINAL PAY-
MENT OF $3,500 TO VON KLUG & ASSOC. FOR RELOCATION SERVICES IN THE CENTER
CITY PROJECT.
UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON PRIEDITIS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, JANUARY 12, 1984 PAGE 7
10. CONSIDERATION OF APPROVAL OF 1984 MEETING SCHEDULE:
Mr. Boardman stated the Commission members had received a 1984 meeting
schedule.
Mr. Rasmussen expressed his concern of the length of meeting time. Was
there some way of limiting the length of meetings?
Mr. Prieditis suggested the meetings start at 7:00 p.m. instead of 7:30 p.m.
and that they limit the meeting length to not later than 9:30-10:00 p.m.
The Commissioners were in agreement with the meeting dates on the third
Thursday of each month, but that the meeting time be changed to 7:00 p.m.
and the meetings limited to 9:30-10:00 p.m.
Mr. Prieditis asked that Mr. Boardman contact Mr. Commers to make sure this
change was agreeable with him.
11 . DISCUSSION OF CHECK REGISTERS:
Ms. Svendsen suggested that a little more information be included in the
agenda explaining some of the vague items in the check registers. This
would save the Commissioners some time in their discussion.
MOTION BY MR. PRAIRIE, SECONDED BY MR. RASMUSSEN, TO APPROVE THE CHECK
REGISTER DATED 12/7/83 TOTALLING $4,533.62; CHECK REGISTER DATED 12/31/83
TOTALLING $211,672; AND CHECK REGISTER DATED 1/11/84 TOTALLING $173,196.
UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON PRIEDITIS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
12. REIMBURSEMENT OF HRA EXPENSES:
MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO AUTHORIZE A PAYMENT
OF $20,579.79 REIMBURSING THE CITY FOR ADMINISTRATIVE COSTS.
UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON PRIEDITIS DECLARED THE
MOTION CARRIED UNANIMOUSLY.
13. UNAUDITED MONTHLY REPORT AS OF 12/31/83:
Vice-Chairperson Prieditis received the unaudited monthly report as of
12/31/83 into the record. He stated the Commission members should review
it; and if they had any questions, they could discuss it at the next meeting.
ADJOURNMENT:
MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO ADJOURN THE MEETING. UPON A
VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON PRIEDITIS DECLARED THE JAN. 12, 1984,
HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 9:00 P.M.
Respectfully su fitted,
Ly Saba, Recording Secretary
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6431 UNIVERSITY AVENUE NE FRIDLEY, MINNESOTA 55432 AREA CODE 612 PHONE 571-3450
February 2, 1984 -
DATE PURCHASE MEI �`�. Z 0
ORIGINAL
Sign and Return Acknowledg- PURCHASE ORDER This Number Must Appear on
leant Copy and Advise Shipping All Correspondence, Invoices,
1Date Immediately. Shipping Papers and Packages
Herrick i Newman PA spar
To
6279 University Avenue NE TO
Fridley, MN 55432
SPECIAL MARKINGSIIDE". HSA REO NO 275 9
-
DATE REQUIRED DELIVERY SHIPPING POINT Il CONFIRMING DO NOT DUPLICATE , TERMS
F.O.B.
ASAP 0 DESTINATION 0 NON-CONFIRMING _%10 DAYS NET 30 DAYS
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ITEM QUANTITY NUMBER DESCRIPTION
UNIT EXTENSION
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IEXEMPT FROM SALES TAX AS A POLITICAL SUBDIVISION OF THE STATE OF MINNESOTA CITY OF FRIDLEY NO. 0030301
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RESOLUTION NO. HRA 4-1984
RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES FOR THE
FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY
IT IS HEREBY RESOLVED that the Fridley State Bank is hereby designated as a
depository for the funds of this corporation.
IT IS FURTHER RESOLVED that checks, drafts or other withdrawal orders issued
against the funds of this corporation on deposit with said bank shall be
signed by two of the following:
Clerk-Treasurer •
City Manager
Finance Officer
and that said bank is hereby fully authorized to pay and charge to the
account of this corporation any checks, drafts, or other withdrawal orders.
BE IT FURTHER RESOLVED that all transactions, if any relating to deposits,
withdrawals, re-discounts and borrowings by or on behalf of this corporation
with said bank prior to the adoption of this resolution be, and the same
hereby are, in all things ratifited, approved and confirmed.
BE IT FURTHER RESOLVED that any bank or savings and loan may be used as
depositories for investments purposes so long as the investments comply with
authorized investments as set forth in Minnesota Statutes.
BE IT FURTHER RESOLVED that the signatures of two of the following named
City employees are required for withdrawal of HRA investment funds from
savings and loan associations:
Clerk-Treasurer
City Manager
Finance Officer
BE IT FURTHER RESOLVED that any brokerage firm may be used as a depository
for investment purposes so long as the investments comply with the
authorized investments as set forth in Minnesota Statutes.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF
FRIDLEY THIS DAY OF , 1984.
CHAIRMAN
HOUSING AND REDEVELOPMENT AUTHORITY
ATTEST;
EXECUTIVE DIRECTOR
3/0/24/28