HRA 01/10/1985 HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, JANUARY 10, 1985 7:00 P.M.
City of Fridley
AGENDA
HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, JANUARY 10, 1985 7:00 P.M.
Location: Council Chambers (upper level )
CALL TO ORDER:
ROLL CALL:
APPROVAL OF MINUTES: .
Housing & Redevelopment Authority Minutes: December 13, 1984
ADOPTION OF AGENDA:
REVIEW STORER CABLE COMMUNICATION REQUEST FOR REIMBURSE- 1 - lE
MENT OF COSTS TO RELOCATE THEIR OVERHEAD LINES SOUTH OF
MISSISSIPPI STREET
AUTHORIZING SALE OF REFUNDING BONDS FOR CENTER CITY 2
FINANCIAL STATEMENT 3
CHECK REGISTER 4
OTHER BUSINESS:
ADJOURNMENT:
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY
MEETING
DECEMBER 13, 1984
CALL TO ORDER:
Chairperson Commers called the December 13, 1984, Housing & Redevelopment
Authority meeting to order at 7:06 p.m.
ROLL CALL:
Members Present: Larry Commers, Elmars Prieditis, Duane Prairie, Walter Rasmussen
Members Absent: Carolyn Svendsen
Others Present: Nasim Qureshi , HRA Director
Sid Inman, City Finance Director
Dave Newman, City Attorney
Bill Haub, Moss & Barnett, 1200 Pillsbury Center, Mpls.
Bill Walter, Heartland Realty Investors, Inc.
Rolf Johnson, Merrill Lynch Realty, Robbinsdale
Jim Casserly, Miller-Schroeder
APPROVAL OF NOVEMBER 8, 1984, HOUSING & REDEVELOPMENT AUTHORITY MINUTES:
MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO APPROVE THE NOV. 8, 1984,
HOUSING & REDEVELOPMENT AUTHORITY MINUTES AS WRITTEN.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
1 . PUBLIC HEARING REGARDING ENTERING INTO A DEVELOPMENT AGREEMENT WITH
HEARTLAND REALTY INVESTORS, INt. :
Mr. Qureshi stated that for some reason the notice of public hearing had
been published stating that the public hearing was at 8:00 p.m. instead
of 7:00 p.m. He suggested the commission members continue with the other
agenda items and return to this item at 8:00 p.m.
2. CONSIDERATION OF APPROVAL OF LEASE OF HARDWARE BUILDING (214 MISSISSIPPI ST. )
BETWEEN THE HRA AND THE CITY OF FRIDLEY:
Mr. Commers stated that since the HRA was the owner of the property, what
was the status with respect to liability insurance for the HRA. Was the HRA
named on the policy? The HRA was a separate corporation so the City should
be sure the HRA was named on the policy.
Mr. Inman stated he would check into it.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER 13, 1984 PAGE 2
Mr. Commers stated that in the third paragraph of the first page of the
lease agreement, it stated: "At the end of the three year lease period,
the parties shall have the option of exercising one year extensions upon
mutually agreeable terms."
Mr. Commers stated the HRA was willing to enter into the lease and extend it
if there was no development going on, but he would not want it to be a manda-
tory type of thing.
Mr. Inman stated he would have no problem with changing that statement in
some way.
Mr. Prieditis suggested that the word "shall " be deleted and replaced with
the word "may".
The HRA members agreed on the following change: "At the end of the three
year lease period, the parties may exercise a one year extension upon mutually
agreeable terms."
Mr. Inman stated there was an invitation in the agenda packet regarding the
liquor store's grand opening on Fri. , Dec. 14, and Sat. , Dec. 15.
MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRIEDITIS, TO APPROVE THE LEASE OF
THE HARDWARE BUILDING BETWEEN THE HRA AND THE CITY OF FRIDLEY AS AMENDED AND
SUBJECT TO THE LIABILITY INSURANCE COVERAGE.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
3. DISCUSSION REGARDING REFINANCING OF BONDS:
Mr. Qureshi stated the HRA members had received information that summarized
this whole issue. He reviewed this information with the HRA.
Mr. Qureshi stated it was Staff's recommendation that the HRA proceed with
refunding. It did give the HRA additional flexibility and additional options.
If the HRA does wish to bond, there is certainly a sizeable savings over the
life of the bonds.
Mr. Qureshi stated the HRA could officially consider this at their next
meeting, but Staff would like the HRA to approve in concept the approach of
going with the refunding along with additional $1/2 million in bonding and
prepare the paperwork for the end of February sale. Staff would then bring
the final documentation for final approval at the January meeting.
Mr. Prieditis stated he would go along with Staff's recommendation. He could
see nothing but benefits with this.
Mr. Rasmussen stated he had no problem with the concept, but he had not had
time to review this information thoroughly.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER 13, 1984 PAGE 3
The HRA members indicated they agreed with the concept,subject to further
review and analysis before approval at the next meeting. Mr. Commers stated
the commissioners could review this in a little more detail at the next meeting.
They could even meet with City Staff or Mr. Jim Casserly, Miller-Schroeder,
if they had any further questions.
4. FINANCIAL STATEMENT:
Mr. Inman stated the HRA members had the financial statement for Jan. 1 -
Dec. 13, 1984, and a bill for city expenses in the amount of $3,462.11 .
MOTION BY MR. PRAIRIE, SECONDED BY MR. PRIEDITIS, TO APPROVE THE FINANCIAL
STATEMENT DATED JAN. 1 - DEC. 13, 1984,AND TO AUTHORIZE PAYMENT TO THE CITY
OF $3,462.11.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
5. CHECK REGISTER:
Mr. Commers stated the HRA had actually approved the check register along
with the financial statement.
6. RECEIVE 1985 SCHEDULE OF MEETINGS:
The HRA members concurred with their 1985 meeting schedule.
7. OTHER BUSINESS:
a. Memo from Legal Counsel Regarding the Relocation of Overhead Cable to
Underground Cable by Storer Cable Communications
Mr. Newman stated his legal opinion did not agree with Storer's inter-
pretation of the franchise agreement, and he supported City Staff's
recommendation that the relocation had to be at Storer's expense. His
primary basis for his opinion was that at the last meeting, Mr. Wegemer
of Storer Cable had made reference to the franchise agreement; but, in
addition, there is an ordinance that authorizes the franchise agreement.
The ordinance is quite clear that any relocation of lines should be at
the expense of the franchisee.
Mr. Qureshi stated the City had supplied copies of Mr. Newman's legal
to Mr. Wegemer and the CATV Commission members on Nov. 15.
Mr. Commers stated that since this item had not been formally put on the
agenda, the HRA could wait to see if there was any response from Storer.
If Storer does respond to Mr. Newman's memo, they could put this on the
agenda for consideration at their next meeting.
The HRA members received Mr. Newman's memo into the record.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER 13, 1984 PAGE 4
8. CONTINUED: PUBLIC HEARING REGARDING ENTERING INTO A DEVELOPMENT AGREEMENT
WITH HEARTLAND REALTY INVESTORS, INC. :
MOTION BY MR. PRAIRIE, SECONDED BY MR. PRIEDITIS, TO OPEN THE PUBLIC HEARING.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE PUBLIC
HEARING OPEN AT 8:03 P.M.
Mr. Commers stated a development agreement with Heartland Realty Investors, Inc. ,
has been discussed at several earlier meetings, and at the last meeting, the
HRA indicated an approval in concept of what was going to take place. At this
time, he would like Mr. Qureshi to again explain in some detail the proposed
project.
Mr. Qureshi stated they are basically trying to develop the same kind of
aesthetic environment in the Holly Shopping Center that the HRA has been able
to do in the southeast quadrant. The southeast quadrant is essentially complete.
He stated City Staff has been working with the new owners of the Holly Shopping
Center, Heartland Realty Investors, Inc. , to create this new environment.
Over many months of discussion and negotiation, they have been working to
evolve an agreement with both parties. The City worked with Heartland Realty
to try to get some low interest money through HUD. This was unsuccessful due
to certain HUD requirements they could not meet.
Mr. Qureshi stated the new proposal is essentially to renovate the existing
shopping center with a new facade, new signage scheme, and new pylon.
Mr. Qureshi stated he was sure everyone was aware that the intersection at
Mississippi and Highway 47 had a lot of traffic. The City's concern is how
to get the traffic off and on the main thoroughfare (Highway 47) in order to
get the traffic to the businesses in the shopping center. So, the City has
been working with the County on how to improve this intersection and provide
some additional turning lanes to better facilitate traffic movement.
Mr. Qureshi stated that along the shopping center, there is presently no
landscaping and vegetation, and it was the City's hope that they are going
to develop the same kind of environment as that on the southeast quadrant,
that they do some additional landscaping and also develop some access.
Because the City would be taking some right of way along Mississippi St. , it
would eliminate some parking spaces in the center. One approach in the pro-
prosed development is that the abandoned gas station be acquired by Heartland
Realty and, in turn, the HRA will acquire it from Heartland, take it down,
and replace some of the parking that will be lost due to the widening and
landscaping proposed in the development.
Mr. Qureshi stated that as part of the development, Heartland agrees to
expend up to $350,000 for improvement to the center, about $250,000 willbe within
their own buildings and property, and they are willing to accept up to $100,000
for any landscaping and public improvements next to their property.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER 13, 1984 PAGE 5
Mr. Bill Walter, President of Heartland Realty Investors, Inc. , stated that
in addition to the $350,000, they are expending another $40,000 with the
Champion Store and Snyders has agreed to expand and redo their entire store,
so the expenditure there was another $150,000.
Mr. Walter stated they have spent a lot of time on this proposed development.
They have been very impressed with working with City Staff. They like doing
business in the City of Fridley and feel they are a spokesman for a large
number of the businesses lecated in the center. They are very enthused
about having the center upgraded. Their idea, over a period of time, is to
have the center be a first class professional place to do business. They
would like to create that image so they can attract tenants that will be
good, aggressive retail merchants, and be good for the City of Fridley.
Mr. Qureshi stated that regarding the acquisition of the gas station, Heartland
Realty has sent option money to Phillips to acquire it. In the agreement,
it is Heartland's responsibility to acquire the gas station. There is another
party who is trying to get approval for a tune-up shop in that location. This
party has applied to the Appeals Commission for variances, but the Appeals
Commission has tabled the issue at this time.
Mr. Prieditis stated it was his personal opinion that the area where the gas
station is should be opened up, not only in terms of the total development,
but also for the benefit of the shopping center.
Mr. Commers asked Mr. Qureshi what the plan was for the intersection.
Mr. Qureshi stated they now have five lanes on Mississippi St. , but it was
the City's hope to expand that to seven lanes. The City will have to present
this proposal to the County and work with the County, as the road is under
the control of the County.
Mr. Commers asked if there was anyone in the audience who would like to
address the HRA regarding this development agreement between the HRA and
Heartland Realty.
There were no commments from the audience.
MOTION BY MR. PRAIRIE, SECONDED BY MR. PRIEDITIS, TO CLOSE THE PUBLIC HEARING.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE PUBLIC
HEARING CLOSED AT 8:25 P.M.
9. CONSIDERATION OF A RESOLUTION NO. HRA 20-1984 APPROVING DEVELOPMENT AGREEMENT
WITH HEARTLAND REALTY INVESTORS, INC. :
MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO APPROVE RESOLUTION
NO. HRA 20-1984, "A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF
A DEVELOPMENT AGREEMENT WITH HEARTLAND REALTY INVESTORS, INC. , RESPECTING
THE HOLLY SHOPPING CENTER".
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMERS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, DECEMBER 13, 1984 PAGE 6
ADJOURNMENT:
Chairperson Commers declared the December 13, 1984, Housing & Redevelopment
Authority meeting adjourned at 8:30 p.m.
Respectfully su mitted,
_
Ly- e Saba
Recording Secretary
r
1
CITYOF
FRlDLEY
CIVIC CENTER • 6431 UNIVERSITY AVE N E FRIDLEY. MINNESOTA 55432 • PHONE (612) 571-3450
December 17, 1984
Chris Wegemer
District Manager
Storer Cable Communication
350 63rd Avenue N.E.
Fridley, MN 55432
RE: Housing & Redeveloment Authority Meeting, January 10, 1985
Dear Mr. Wegemer:
Please be informed that the H.R.A. will review your request for reimbursement
of costs to relocate your overhead cable South of Mississippi Street at their
January 10, 1985 meeting. You are invited to attend and make any comments
you desire.
As you recall, I provided you with a copy of the City Attorneys' opinion -
Memo from Mr. Dave Newman, dated November 13th of this year. The H. R. A.
members have also received the Attorneys' opinion and will be discussing this
issue at the meeting of January 10th at 7:00 p.m.
Regardless of the outcome of your request, the relocation work must be
completed early in the 1985 season. Immediately following spring thaw is
rcommended. I trust you have all materials ordered that will be needed to
accommodate this relocation project.
Please call me if you have any questions on this matter.
Sincerely,
/ I /4 -E
Clyde V. Moravetz
Cable Coordinator
CVM/de
cc:"Nasim Qureshi, H.R.A. Director
Housing & Redevelopment Authority
3/5/32/1
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DIRECTORATE _ o00 1B
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MEMORANDUM
PUBLIC WORKS tromamma .;.;V.`
FRI L Y
DATE December 13,E 1 84
FROM O.P.W. Clyde oravetz-Cable Coordinator , TSO ACTION INFO.
SUBJECT John Flora / _
Relocation of Storer Cable Overhead Lines Nasim Qureshi
Adjacent to and South of Mississippi Street
There has been much discussion on whether the H.R.A. should reimburse Storer for
their relocation work near Mississippi Street resulting from the Center City development.
The Staff has, over the past few months, recommended no reimbursement to Storer as the
existing Franchise quite clearly states this type of expense be absorbed by the Company.
Attached is a memo from City Attorney David Newman dated November 13, 1984. He clearly
supports Staff opinion on this matter. I provided copies of the memo to Mr. Wegemer -
District Manager of Storer Cable and the Cable Commission members at the regular scheduled
meeting of November 15, 1984.
CVM/de
HERRICK & NEWMAN. P.A. 1C
IntOu C. MIMIC* ATT011Me•s AT{Age
ern uwivtR$?I AVIMue w e
DAVID P.MtMNAM FRIDLEY. MINNESOTA BUM
JAret t. SCrreCaPSPPP 571.31150
MEMORANDUM
TO: Fridley Housing Redevelopment Authority
FROM: David Newman
RE: Relocation of Cable Television Cables
DATE: November 13, 1984
At your November 8, 1984 meeting Storer Cable asked you to reimburse
them for the cost of relocating to underground their cables on the Target
property. At that time you directed me to review this matter.
It is the opinion of this office that Storer Cable is solely respon-
sible for any expense which may be incurred in relocating these cables.
I would specifically direct your attention to Section 405.06 (2) of
the City Code which is the chapter for cable franchises. This section
provides that the City shall have the right to improve, repair or alter
any street or any other public work and that if such work is interfered
with by the location of the cables then:
". . .all such poles, wires, conduits or other appliances and
facilities shall be removed or replaced by Grantee in such
manner as shall be directed by the City so that the same shall
not interfere with the said public work of the City, and such
removal or replacement shall be at the expense of Grantee
herein." (emphasis added)
You will note that under this provision of the Cable Communications Franchise
Ordinance, Storer is responsible to relocate all cables at its own expense.
In their presentation to you Storer made reference to Section 6.05 of
the franchise agreement. However, it ii.my opinion that this issue can be
resolved without looking to that agreement in that the City's authority to
enter into such an agreement is limited by the authority granted to it under
the franchise ordinance. Since this ordinance clearly requires Storer to pay
for the cost of relocating all cables, then the City would be unable to
11)
exceed this authority by agreeing in the franchise agreement to pay for the
cost of such relocation. Simply put, the City's authority is derived from
the franchise ordinance and the City cannot enter into a franchise agreement
which is contrary to the terms of the enabling ordinance.
Although I believe that the language contained in the ordinance disposes
of this matter, I feel I should also address some of the issues raised by
Storer. At your meeting Storer argued that Section 6.05 of the franchise
aFreement expressly requires Storer to pay the expense of initially
installing any underground cables but that the agreement is silent as to who
should pay for the cost when the cables are relocated from above ground to
underground. I disagree with this interpretation. Although this section may
not be explicit the only reference contained in it to the cost of installation
is that Storer should pay for said costs. A careful reading of this section
will show that it starts out by indicating that Storer will pay for the cost
of underground installation where all existing utilities are already under-
ground. This section then addresses the question of when utilities are
modified from being above ground to underground. Since there is no additional
language as to who will pay these costs, I believe the proper interpretation
is to assure that Storer will continue to pay these costs.
A full reading of both the franchise ordinance and the franchi%e ayree-
ment is consistant with this opinion. Throughout both documents it is clear
that Storer will incur the costs for installing and relocating their cable
system. Nowhere is the City required to compensate Storer for these costs.
Because of the overall tone of both documents and the language contained in
Section 6.05 of the Agreement it is obvious that the intention was for Storer
to pay for these costs.
1E
At your meeting, Mr. S.'egemer suggested to you that since Storer
originally drafted the franchise agreement that they should know best
as to what was intended. This is contrary to the general rules of
document construction. Normally the rule is that the language will be
strictly interpreted against the party who drafted the agreement.
In other words, if in fact there is an ambiguity, this ambiguity will be
interpreted against Storer since they drafted the document and had ample
opportunity to clarify the ambiguity.
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