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HRA 04/27/1983 HOUSING & REDEVELOPMENT AUTHORITY MEETING WEDNESDAY, APRIL 27, 1983 7:30 P.M. City of Fridley AGENDA HOUSING & REDEVELOPMENT AUTHORITY MEETING WEDNESDAY, APRIL 27, 1983 7:30 P.M. Location: Council Chamber (upper level) CALL TO ORDER: ROLL CALL: PPROVE HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MARCH 10, 1983 These are in agenda of cancelled meeting of April 14, 19831 CENTER CITY DISTRICT -.. .. A. Hardware Building Update —.<: 141 . MEMO (Executive Director) 'AN2. Lease Process 3. Status on existing lease property Property Acquisition Update 1 . Dr. Ryan Automotive Resolution : HRA 6-1983 'ISSSi2. Community Credit Resolution : HRA 7-1983 \j3. Awarding Bids on Sale & Removal of 332 64th Avenue N.E. Resolution: HRA 8-1983 GENERAL RESERVE SYSTEM DISCUSSION C-JeAe RE LAKE DISTRICT equest for Assistance by Tom Brickner for Property velopment at 6211 Central Avenue N.E. (Executive Director MEMO #83-37) B. Request for "Right of Development for "202" Application by St. Phillip's Human Services , Inc. IV. FINANCIAL A. Financial Report B. Check Register V. OTHER BUSINESS: ADJOURNMENT: CENTER CITY DISTRICT 1 THE CITY OF imam* : L� ; •� i •••N;�r i•"NN -T-Amir Neste. HOUSING ••« • ... : •rN}• • NNN. . ••.N.N �. : E.•NN• • N. LegIonol• and •1 .N. .. . ....N. • • ' .NN• REDEVELOPMENT "NN' MEMORANDUM •:;;.N •• .•••••..•. •N •.N • "A. OMNI MOOG I AUTHORITY 11 DOWNiii .. ;,• E ;;;: ;. 6:::11F R I D L EY aN::NN:::::- FROM EXECUTIVE DIRECTOR MEMO NO. 83_23 DATE April 7, 1983 TO ACTION INFO. SUBJECT Housing & Redevelopment Authority Hardware Building - 214 Mississippi Street We removed Clothing Liquidator, Inc. from the Hardware Building on an unlawful detainer order on April 4, 1983. This gave us back _the control of the building for purpose of leasing again. This again raises the question on the terms that the HRA wants to place on the leasing of the building. Placing an 18 month restriction on any new tenant makes it nearly impossible to lease to any operation other than those with potential risks. If the HRA wishes to lease the building, I would suggest that we lease for a guaranteed three years with 2 one year options. Within the two option years, the HRA would be able to buy out the depreciated tenant improvements and remove the business at no additional cost. It may also be in our best interest to hire a leasing agent for that building so we can try to pull in a first class tenant rather than relying on the limited contacts that we generate at the City. I 've talked to Fred Levy, to get a feel of prices in this area. He indicated that the average price range for 1 ,000 to 1 ,500 square feet is about $6.00 per square foot triple net. The larger the space, the less per square foot you would be able to draw. The top dollar on the hardware building would probably be from $3.50 to $4.00, but with the market in this area, it could be difficult to get. The Lions Club has expressed an interest in leasing the hardware building for the purpose of setting up their club operations. John Gargaro is putting together some figures on what he feels he could rent the building for. They have been talking initially about $2.50 per square foot with a 3 year lease with 2 one year options with depreciated buy outs. The Lions want to discuss that with you at the April 14, 1983 meeting. JLB/de • 2 STANDARD LEASE PROCESS - APRIL 14, 1983 The following is the standard lease process to be followed on all new leases and the maintenance of new and existing leases. New Leases - 1. All leases shall be executed on standard lease forms approved by the Attorney for the HRA. 2. There will be a staff review of required financial documentation (such as, asset/liability report, bank/financial credit reference checks, financial statements of existing businesses, etc). This review shall include the HRA Excutive Director, Lam,. 'Marrdgtr, Fess r .toy and the HRA attorney. 4.m, 3. The signing of the lease must be approved by the HRA with a report from the Executive Director with written approval from the HRA attorney. 4. All executed leases shall be accompanied by a first and last month lease payment. Maintenance of New and Existing Leases - 1. There shall be a standard late payment process set up which triggers the sendingof pre-developed form letters in the following matter. a. 5 days late - registerei letter requesting payment with 5% late fee - copy to the attorney. b. 10 days late - registered letter notifiying the tenant and the HRA attorney that unlawful retainer action is to be started. 2. This is set up for a quick step process, however, some discretion is allowed to the Executive Director for cases of unusual circumstances. 3 RE: Payment of rent at Fridley. MN. Dear Mr. : This letter is put you on notice that we have not received your rent payment. It is essential that this payment, along with a 5% late fee be received no later than 5 days from the date of this notice . Failure to respond to this notice will start automatic legal action. payment due If you have any questions concerning this notice, please contact the Fridley Housing and Redevelopment Authority at 571-3450. Sincerely, JERROLD L. BOARDMAN Executive Director Fridley Housing & Redevelopment Authority cc: HRA Attorney JLB/de 3/0/24/8 l; RE: Action to Remove From Premises Due to Non-Payment of Rent Dear Mr. • We have been forced to notify our attorney to start legal action to remove you from the premises at , Fridley, Mn. , for non payment of rent. If we have not received payment within 5 days from the date of this notice, we will be required to follow through on the legal action started. Please contact me at 571-3450. _ Sincerely, JERROLD L. BOARDMAN Executive Director Fridley Housing & Redevelopment Authority JLB/de 3/0/24/9 5 HRA RENT MONTHLY DATE LEASEE RENT OCCUPIED 1981 1982 1982 Clothing Liquidators* $3,140 1/83 None Community Credit $550 8/82 $2,750 $1 ,650 Douthitt $190 + 29.22 9/78 $2,280 $2,280 570 Gary's** $225 7/80 $2,700 $2,400 None Lifestyle Music $500 5/81 $4,000 $6,000 $1 ,000 Madsen Building $560 11/82 $560 $1 ,120 Magic Swirl $507 8/82 $2,535 507 Northwestern Bell $1 ,020 5/82 $8,160 $3,060 Royal Electric (Standard) $200 3/82 $220 $600 Royal Electric (Land) $20 9/78 $240 $240 $60 *In arrears - $3,420 **In arrears - $975 6 THE CITY OF �y .. .. . N.N is....:: -� a ..L..NN.E .... HOUSING r . _ ; -p..... .... • i e. 003 ...NN end e:':�, •.r ..,. € a, r r. REDEVELOPMENT +' MEMORANDUM_ Am: • 00 (.�. .... ..::4\: AUTHORITY ;10111.00001 .N• E :::: ::::::1 FRIDLEY .;.....N..; :u .w.....N. K. 01.000000,0 SROM EXECUTIVE DIRECTOR MEMO NO. 83-24 DATE April 7, 1983 TO ACTION INFO. iU BJE C T ACQUISITION OF DR. RYANS Housing & Redevelopment Authority AUTOMOTIVE CLINIC Please see attached copies of letters written concerning the acquisition of the above noted property. We have been requested to take condemnation action by Mr. Ryan's attorney. This process has been started. It is our hope to still be able to reach some workable purchase arrangement on the property within the restrictions of the Community Development Block Grant Funds. I should have ad- ditional information at the April 14, 1983 meeting. JLB/jh 7 THE CITY OF _ L` HOUSING . t..... i."'" -• __::.. and :r.::.... • MEMORANDUM .. ♦ :.YV 4:', ...N...i ... ....4�: AUTHORITY :: E:::;;;;' 6 1 FRIDLEY ••"'� ' FROM EXECUTIVE DIRECTOR MEMO NO. 82-54A DATE Juno 7g. 19117 TO ACTION INFO. SUBJECT Tom Ryan File Acquisition of Dr. Ryan's Automotive Clinic Discussed acquisition with Tom Ryan, have agreed to hold off acquisition appraisal until after the 1st of the year since property not needed to be removed until June, 1983 JLB/de 8 LAW OFFICES SMITH, JUSTER, FEIKEMA, MALMON 8c HASKV ITZ WYMAN SMITH CHARTERED LEONARD T.JUSTER SUITE 1250 HENRY M. FEIKEMA •UILDERS EXCHANGE SUILDING ALVIN S. MALMON MINNEAPOLIS,MINNESOTA 55402 RONALD 4HA5KV1T2 TELEPHONE 336.1461 C6i2; CARL J. NEWOUIST FriCE MARK E.HAGGERTY FIVERSI OAVEN JOHN M,WOLIN 5441 UNIYERSITr AVENUE.N.E. J.CHRISTOPHER CUNEO FRIDLEv,MINNESOTA 55432 TELEPHONE (012) 571.6670 ASSOCIATES 6.WILLIAM EKSTRUM STACEY A.DEKAL• JAMES W. HOESCHLER March 21, 1983 Mr. Jerry Boardman City of Fridley Planner City of Fridley 6431 University Avenue N. E. Fridley, Minnesota 55432 Re: Ryan Automotive Condemnation Dear Mr. Boardman: As you are aware, our law firm represents Mr. Thomas Ryan in regard to the condemnation of his property located at the corner of University Avenue and 64th in the City of Fridley. Recently the City and the HRA made a proposal to purchase Mr. Ryan's building and land for the sum of $113,000.00 plus an additional $19,746.00 for fixtures and an additional $4,371.00 for his interest in his former tenants' property. This letter is to inform you that Mr. Ryan does not accept your offer in the dollar amounts as stated. I feel that the only way to resolve the matter will be to commence condemnation and to argue the issue of damages before the commissioners and possibly the court itself. In order to assist the City, my client is willing to accept a "quick take" which would mean that he would be paid the full amounts as described herein- before plus relocation costs and reserve all rights that he has to contest the value of the land, building, fixtures, and relocation damages. I have ordered that the abstract be brought up to date in order that the city attorney may review it and that a deed be given to the City for the property in exchange for the monies stated herein reserving all rights that my client has to contest the value as the City and the HRA have stated it. I should also inform you that we have hired the appraisal firm of Newcombe and Hanson to do an independent appraisal to determine what the real value of the pro—rty is. Very Y";00111. Henry H. Feikema HHF/cv cc: Thomas Ryan 9 RESOLUTION NO. HRA 6-1983 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY DIRECTING CONDEMNATION AND DETERMINING THE NECESSITY FOR AND AUTHORIZING THE ACQUISITION OF CERTAIN PROPERTY BY PROCEEDINGS IN EMINENT DOMAIN ON LOTS 12, 13 AND 14, BLOCK 4, BEE'S ADDITION TO FRIDLEY PARK, 6389 UNIVERSITY AVENUE N.B. WHEREAS, the Fridley Housing and Redevelopment Authority has previously entered into a contract with Columbia Park Clinic for the acquisition of the property at 6389 University Avenue N.E. , Fridley, Minnesota; and WHEREAS, the Commissioners of the Fridley Housing and Redevelopment Authority believe it is in the publilc interest to acquire the above property; NOW, THEREFORE BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Fridley, Minnesota, as follows: 1. Acquisition by the Fridley Housing and Redevelopment Authority (herinafter referred to as the Fridley H.R.A. ) on the following described property is neccesary for the purpose of the orderly development of the Center City Tax Increment District and in order to perform its contractual obligations with Columbia Park Clinic; Lots 12, 13, and 14, Block 4, Ree's Addition to Fridley Park. 2. The Fridley H.R.A. attorney is authorized and directed on behalf of the Fridley H.R.A. to acquire the real estate described above by the exercise of the power of eminent domain pursuant to Minnesota Statutes, Section 117.042. The attorney is further authorized to take all actions necessary and desirable to carry out the purpose of this resolution. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS 14TH DAY OF APRIL, 1983. CHAIRMAN HOUSING AND REDEVELOPMENT AUTHORITY ATTEST; EXECUTIVE DIRECTOR 3/0/24/10 10 TNI CITY OF ••••NN::t.,.:.7.::::: •Ni::::••••••• es J HOUSING 0211,0002 ••:•:: ••:n:'�N� 4.•NN • mu::L e::::: •• C• I • I•NN . •�.•.rend ilia. ... :« • N ♦ REDEVELOPMENT : AUTHORITY • ....= . MEMORANDUM NYr S. /• ;:::::N . ••• .•N/•.� N• : ••-: • ,: • .i ►••.•N• • M�•• • ■FRIDLEY N• FROM EXECUTIVE DIRECTOR MEMO NO. 83-26 )ATE April 7, 1983 TO ACTION INFO. ;OBJECT COKMUNITY CREDIT UPDATE Housing & Redevelopment Authority Please see attached the memo from Dave Newman regarding the Community Credit condemnation. He has indicated that an appraisal of the lease will be required for the quick take action and should be completed as soon as possible. This will also give us a basis for any possible negotiation with community credit. I have taken the necessary steps to get that appraisal completed. I will keep you in- formed of any future activity regarding this matter. JLB/jh 11 MEMORANDUM To: Jerrold Boardman From: David P. Newman Re : Community Credit Company Date: April 8 , 1983 You asked for clarification of the procedure being followed in the condemnation of the leasehold interest held by Community Credit Company . Inasmuch as Community Credit Company appears to be in possession of the property under a valid lease , the only action available to the H.R.A. was condemnation, since an unlawful detainer cannot be commenced against a tenant in rightful possession. In commencing the condemnation, we included a notice provision in which we advised Community Credit that we intended to take possession of the property on June 16 , 1983 . This was done pursuant to M.S.A. Sec . 117.042. This statute provides that if the City has an actual need for the property before the determination of the award by the commissioners, then the public body may take possession 90 days after notice is given by either paying to the owner or depositing with the court , the amount of the petitioner' s approved appraisal . Consequently , it will be necessary for the H.R.A. to obtain an appraisal on the subject property. This appraisal is different than the one performed by the court appointed commissioners. Although the appraisal does not need to be done at this time, it must be completed prior to the expiration of the 90-day period . In addition, I would ask that it be done soon enough so that we would have time to apply to the court for an order transferring possession of the property to us based upon our appraisal . It is my understanding that you have also asked our office to commence condemnation proceedings on the property owned by Tom Ryan. Again, we will draft the documents so as to provide for 90-day possession and they will be prepared so that they can be served as soon as the H.R.A. has adopted a resolution authorizing the condemnation. RESOLUTION NO. HRA 7-1983 12 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY DIRECTING CONDEMNATION AND DETERMINING THE NECESSITY FOR AND AUTHORIZING THE ACQUISITION OF CERTAIN PROPERTY BY PROCEEDINGS IN EMINENT DOMAIN ON THE LEASEHOLD INTEREST HELD BY COMMUNITY CREDIT COMPANY, 6339 UNIVERSITY AVENUE I.E. WHEREAS, the Fridley Housing and Redevelopment Authority has previously entered into a contract with Columbia Park Clinic for the acquisition of the property at 6339 University Avenue N.E. , Fridley, Minnesota; and WHEREAS, the Commissioners of the Fridley Housing and Redevelopment Authority at their meeting of March 10 , 1983, concurred in the recommendation of its executive director to acquire the leasehold interest in the above property in order to be able to perform under the terms of the contract which the Fridley Housing and Redevelopment Authority entered into with Columbia Park Clinic; NOW, THEREFORE BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Fridley, Minnesota, as follows: 1 . Acquisition by the Fridley Housing and Redevelopment Authority (herinafter referred to as the Fridley H. R. A. ) on the following described property is necessary for the purpose of the orderly development of the Center City Tax Increment District and in order to perform its contractual obligations with Columbia Park Clinic; The leasehold interest held by Communtiy Credit Co. over a portion of Lots Four (4) through Eleven (11) , except the easterly 30 feet of Lots Four (4) through Seven (7) inclusive, all in Block Four (4) Ree's Addition to Fridley Park, County of Anoka, State of Minnesota. 2. The Fridley H.R.A. attorney is authorized and directed on behalf of the Fridley H.R.A. to acquire the leasehold interest in the real estate described above by the exercise of the power of eminent domain pursuant to Minnesota Statutes, Section 117.042. The attorney is further authorized to take all actions necessary and desirable to carry out the purpose of this resolution. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS 14TH DAY OF APRIL, 1983. CHAIRMAN HOUSING AND REDEVELOPMENT AUTHORITY ATTEST; EXECUTIVE DIRECTOR 3/0/24/11 13 ..N•.N..... N. Ma CITY of ..•,.N 0110,0 NOON N.•. ,....NNN•N.N".1NNNN• NN••N••.• •••N.NN•. = =:NN _ .. N • N~••• I ••,: N H:: tligir---) HOUSING : . • Vand 11100%, -or . N.... •••._... "'N '" MEMORANDUM ' if' REDEELOPMENT AUTHORITYaiiiiiii :: N...... N••N• • : E:::::::i •.N . 1:: .N.••N .•• •N FRIDLEY ""' FROM EXECUTIVE DIRECTOR MEMO NO. 83-25 DATE April 7, 1983 TO ACTION INFO. SUBJECT BIDS FOR THE SALE AND REMOVAL OF Housing & Redevelopment Authority THE SINGLE FAMILY HOME AT 332 64TH AVE. N.E. Please see the attached bids that were received for the sale and removal of the above noted single family home. The high bid was Safeway Movers at $5,800.00. The house is set for removal on May 2, 1983. This bid calls for the removal of the house structure from the site. All movers will be notified by letter, fol- lowing HRA awarding of the sale at the April 14, 1983 meeting. I am also enclosing copies of the bids for the removal of the garage at 336 64th Ave. N.E. The demolition and removal was completed as required under our contract with Columbia Park Clinic. H & S Asphalt Company was low bid at $3,750.00. JLB/j h _.._ __ 14 RESOLUTION NO. H' -1983 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY APPROVING THE SALE OF THE RESIDENTIAL STRUCTURE AT 332 64TH AVENUE N.E. , AID AWARDING THE BID TO SAFEWAY MOVERS. WHEREAS, the Fridley, Housing and Redevelopment Authority has purchased the residential property at 332 64th Avenue N.E. as part of the Center City Redevelopment District; and WHEREAS, the land associated with this purchas has been deeded to the Columbia Park Properties as a condition of the "Contract for Private Development" between the Fridley Housing and Redevelopment Authority and the Columbia Park Properties; and WHEREAS, the Fridley Housing and Redevelopment Authority is responsible for the removal of the structure from the aboved noted property. NOW, THEREFORE BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Fridley, Minnesota: $(:b That they hereby approve the sale of the single family structure located on Lots 1 , 2 and 3, and the Northerly 7 1/2 feet of Lot 4, except the Easterly 54 ft. thereof, Block 4, Ree's Addition to Fridley Park, generally described as 332 64th Avenue N.E. , Fridley, Minnesota. V That they hereby award the bid sale to Safeway Movers for $5,800.00 to move the structure from the above described site. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS 14TH DAY OF APRIL, 1983. HAIRMAN OUSING AND REDEVELOPMENT AUTHORIT ATTEST; EXECUTIVE DIRECTOR 3/0/24/12 • 15 117-4 stitti CITY OF FRIDLEY 6431 UNIVERSITY AVENUE N.E., FRIDLEY, MINNESOTA 55432 TELEPHONE ( 612)571-3450 April 7, 1983 • r • Safeway Movers, Inc. 8955 - 235th Street North Forest Lake, MN 55025 Dear Sirs: At the regular H.R.A. meeting on April 14, 1983, you will be awarded the house located at 332 - 64th Avenue N.E. The price you quoted the City of Fridley was $5,800. We require a certified check in the amount specified made out to the Fridley Housing and Redevelopment Authority. The check must be received prior to any activity on the property. As per our agreement, the house must be moved out of the City on or about May 2, 1983. It is imperative to the surrounding construction that this project be completed as soon as possible after May 1, 1983. Thank you for your cooperation and we look forward to working with you. Sincerely, John G. Flora Director of Public Works JGF/mc cc: Jerry Boardman Mark Burch Del Zentgraf 1-6 • , e . 1MP . . .--. :' ❑ SEND VIA SPEEDWRITER MESSAGE SENDER 1TP( OR MRi1( M(SS•GE PULL OUT 'EL(O* SSW REGULAR MAIL MAIL *.,,TE PhD Plhe COFIES 1C ►DDRISS(E ❑ AIR MAIL ►DDR(SSEE Iva Tl RIPI' R(EP WW1( COPY RE1UPh T..( P1PIR Poo 4I 0 SPECIAL DELIVERY FROM: DALE MOVERS. INC. [] Vn,' Tpn u PLEASE REPLY 7B16CENTRAL.AVE..N E. REPLY NOT NEEDED MINNEAPOLIS. MINN. 65432 P,-. 784-426° March 30, 1983 DATE SUBJECT To. City of Fridley 6431 University Ave NE RE: House on 64 Ave NE Fridley, MN 55432 Attn: Del —MESSAGE I • Our bid for house and garage to be removed from property. Removal will proceed on 24 hours notice. $2651.00 POLO mane TWO THOUSAND SIX HUNDRED FIFTY ONE DOLLARS. TO Ptt IPT1I DOS SDr►LOPS SIGH MERE / Dale E. PetervAtli President —REPLY 1. (SIGH MERE J ADDRESSEE: PLEASE KEEP WHITE COPY AND RE_TI Rs. PINK COPY 1Jrnpnnttl Page No. of Pag�_`-t / SAFEWAY HOUSE MOVERS, INC. 8955235th Street North FOREST LAKE, MINNESOTA 55025 Phone 464-2037 PROPOSAL SUBMITTED TO 7/fY GATE ., 4, 7 . YC4/—AIA)D3? 3— 07Y su STIIEEr4-4914— JOB NAME z. CITY. STATE AND ZIP CODE JOB LOCATION ARCHITECT WE Of RAMS JOB PHONE We hereby submit specifications and estimates for _ ,,./.. - Q->.c.,,,/'./�-tri .r...P.4– 1 I al —• 4-49e7 _„_ /./-E .....c- .09- c......").- ,....,?.... ..--,..-7:-,_„...-...e.... . 4,„ a.s i0 lir FropnBr hereby to furnish material and labor — complete in accordance with above specifications. for the sum of _ • 1��/ Ci+ -- �.rl...�— dollar s($_:i O '� Y Vikl:c.-.'"IIE-d---- --...".......--Tment be mades � 4 All material is ng Stan tostandard be as t% Any All Stork to be completed fin a veKunsnlra Authorizedn, v ] y� manner according to standard pactrces Any aKeratrpn a devytron from above specrfru ees•!(/��� frons rn.dwrng extra costs .,n be executed only upon...teen orders.and cot become an Signature gem charge over and above the estimate All agreements contingent upon stokes.accidents Notr This proposal may be or deter beyond our control Owner to carry fire.tornado and other necessary insurance Our.pikers are Hifi covered by worsmen's Compensation Insurance withdrawn by us if not accepted within days.j Arrrptanrr Of rropoBa1 —The above prices. specifications _ and conditions are satisfactory and are hereby accepted. You are authorized Signature to do the work as specified Payment will be made as outlined above. Signature Date of Acceptance 1 19 GENERAL RESERVE SYSTEM DISCUSSION 20 MOO RE LAKE DISTRICT 21 T0411 CITY OF . •NNN...NN.N...N._N• , N. ..•...•••.. N ::!.:.. ::: ToN. .. , ._ . / HOUSING . • : • .. . :..N.• cm" ::•N.,:" .... . . N •:.. , N • F- and � .... MEMORANDUM REDEVELOPMENT •.••• '•�' �'�� "•5S re AUTHORITY :•N, .... ' _ "' immemmeeeksem_: -=z::: : c• :�:: .. FRIDLEY =ROM EXECUTIVE DIRECTOR MEMO NO.83-37 )ATE April 20, 1983 TO ACTION INFO. ,U BJE CT Housing & Redevelopment Authority X Request from Tom Brickner I met with Mr. Brickner on April 19, 1983 to see if there was any feasible way for the HRA to assist the development without taking a direct acquisition role on the property. If the HRA gets involved, I strongly feel that we will have to go to condemnation to reach an agreeable purchase price with Mr. Skinner. Tom indicated that he would talk to Mr. Skinner to find out what his total asking price is and evaluate the present structure to see what value it would have to him. If Mr. Brickner feels that he will not be able to purchase the property directly from Mr. Skinner, the HRA would be well advised to hold on this matter until such time as they can show progress on the Max Saliterman property. Any action from the HRA in that area may create unnecessary citizen reaction. I 've explained this to Mr. Brickner, and he indicated that there is no real hurry on his part, but that he would like to finish off the area. 11 22 ...N.....N.N.......N.....N..N.N ...... ....N.. ....N. .NN.. THE CITY OF -- ---; HOUSING .......w=.. NN . ;..NN � ' !.�m.ri �_Si. • �NNNN E"" :. -ff and :am .... NNN MEMORANDUM ":_j_ REDEVELOPMENT .:, `.. .■ ....... ......- N.... AUTHORITY 09_ Osis E'N# •'_ �= FRIDLEY 83-28 FROM EXECUTIVE DIRECTOR MEMO NO.83-28 DATE March 7, 1983 TO ACTION INFO. SUBJECT Housing & Redevelopment Authority x Letter from Tom Brickner Requesting Assistance for Continueation of his Heather Hills West Development Please see attached letter from Tom Brickner, requesting HRA assistance for the continuation of his development to the north for the completion of Heather Hills West. In looking at the proposal , I would recommend caution on the part of the HRA to not be a catalyst, but assist as needed within the limitations of funds generated by the proposal . I have estimated that the proposal would generate six single family lots for homes between $200,000 - $250,000. That kind of development would generate approximately $100,000 in tax increment funds. If the HRA is interested in assisting in this proposal, I would suggest that the HRA assist Mr. Brickner in a negotiated purchase between himself and Mr. Skinner up to the amont of money available in the project and then only in the amount necessary to make it a viable project. I will discuss this further with Mr. Brickner prior to the April 14, 1983 meeting. JLB/de ...., Designers & Builders of i.essT.wso Fashionable Homes Since 1963ipumme 23 ISS IX1�E R B UI Lb Cd 4?/g. Inc. bs 574 - 9 871 6249 BEN MORE DR. FRIDLEY, MN. 55432 March 18, 1983 Mr. Jerry Boardman City of Fridley 6431 University Ave. N.E. Fridley, Mn. 55432 RE: Ralph Skinner Property 6211 Central Ave. N.E. Fridley, Mn. 55432 Dear Jerry: Brickner Builders', Inc. is interested in purchasing the Ralph Skinner property, which is adjacent to our Heather Hills West development. Our Heather Hills West homes are in the upper price bracket, and if we are allowed to continue development to the North, by building compatible homes, I feel it will be beneficial to our customers and the city will benefit from higher taxes because of the price range of the homes. Because this is in the redevelopment area, if the HRA purchases this land, I would like the opportunity to buy the cleared land. Our proposed offer is $65,000.00. Your consideration of this offer would be appreciated. Since -/1 oma.s E. Brickner Brickner Builders' , Inc. VO • t ' 84TH AVE. N y' : 1 '� Fiv �. s.. 3 ,n �s 15 ;t . . J `J A :•4341 a' , 137 Z 1316 , ►4.0 1426 16411 50 i+ 6400 -7") II* ✓3"' J< 0 16,0) ' %ow f r (J► 2 1x.J `t 13SG 16 I �� rx) ' 4 VCelfVf- sla ta - • ' il.# Ili /3 9 : 7 't• 5 1.'4 'ik r, ; ,/,‘ 10 ' ,, 1 t ,v of, a I. I i , 1 1501 t Jr. ,- J4w 4,# !AlK ' •! 30 1 ♦ _. •w air! `r ---a----•-•--- 1. Jr V WI Sat . i T - – , X4345 (�so) Grs4� G�eoy (iiuw OM* �y ,�..� CE V. • �603) 1 RRA , 4300 .. . 11 .� 1 - 14L0 1321 1. f` 1425 1441 for 1411 . 501 13/5 --,:g .. ' "� f?10E 4CREEK ROAD ''"`iii -- -- '' `RLC , r ita 0 14 30 G2 1 -- 47 - - a 1370 / zo - ' ,, 10 4183 �� I On: ;tr t- 41 i ��— ..� � 1 62.03 !- R _ ` (•n„v "" , t. - 4�°`'� m� W ' 2 3 4— t ,e,-.7,...;;,„...,.,,.....:,._..... I i •r 41.71 — s t • ; - J G�7S GLIM.' •+ • (,1.45 ,,.'1 • ` �. f �! �. R. -7,....-, re- -.• t • el i 1 �2�< :�'"' efts.‘Az -���VE b 4 ;= 6 zzq �_,�, ys• � �6,451 62.4 • !� ` it- AUD.• , 19 :Ce�` .A •• 'I' 1.0 ' �d 0 6Z S,CC ' X24. Z 62' 17' • / 7:4‘/A �•��� `'�1,� �'�- 5 ,� W :5::- - 4 36 Y LZ _ POs• . 4 / j 'i'l, , AjfilivA ... . 4 • ,,,, i 7 . r 3 .. a• lis `R• 419/ Ar PE - ' ' • J AU 'AUL___ 61 ta MOORE 1400 . ' la; .. ru (7�?Ol d + I , 14, i�.s r. +LLID�S • • , 'lhl� S �1I70--~ ct �r • �`` ,, 1440112. M • .,.G Ge ..1.11. 911/ H • r 4 di r i/III! vols. ilii :11S A a.e 613E "� �. L%- , vi . iso lSa 5a l•.1! " ooctf 1�• 1= a.,4 1. , :d 1V'. iv• y As . : ' , - .•~ 7 j t • .) -• j c a sf. , t / (� `, :1 1 .-_ - — '" 409 NO. 22 , ..., itlft, ;.''44 ' sa. -er • ANA, I oglAti -ff A S//4 i . - •,- ...Is' • S, . /.! . ../►YJ!L . 0/se fi ✓See/.•w /, 110N, •1/v,✓ o ir • i. '• .• :l(JiI 444;, i, 1.4i 0.40) ,1 i• L.. . * ., I. iv0•44 /5"IY Y •.•01770••• Z 61.71 11 5-00 A �O O/ 1 Pt o: j.r 1 r T I _ y, I ,, 11 1 I. T 1 us su IN. Z"r• . < vj �` y : .z.v � 'w . I �i± •I)II ,L ' _� ~~ O .! I / TNLR CM S 0 . IN N I A fl ; f�ee ti : H ' 11 i+ Ills ' : s i.l;.ltl.s7 ' .~i.•• ti 'C. '- I OsI.O�..l c 7 ', c ^ 1'ONi�.� 04.. if1�� S 00 rJ 'J 4, • Iwi 4 :I,4th s I . GJ o • J • /•` 5 �—w 1 ti . � y/ Te i . • • ;C I l *. — —c — — ' _ . io14/ • < w '� 55.4.9.41"g \ ff\'' 0.4 r I x041 ,� v I ., .. �,i \ h . i. .. w�^ II ll I ti..e "• �• `'' \ , / ; ` I el! " ) 'IL . o it o V Mme.. • \ \ a :54.1. i , ' • • f• $'/I. oto c• �• yam✓/ /16%. , f‘ fi't lsOZ.T° • S fJ l s / �t , c., , 11 M 1 iit *�N�.. s•i7 4i r� v l ..I. ''"� 11 ti •fir,•,. , •0�, , 1 �� I \M M t �� V AQ `• N o0. \ ,00 g'/ 17 ii•I• ` ty w 0 •91 rCa� r �o NI �0 111/ f store) I \ , Z 47 ; o••- w r . I 4 y r--•• c I r ..I 41 f...i; • • • • 101 70 .. _ 10.00 al 0o' - --- .1/S71 -• ...•I • . SO•47•l0 c . •J 1. .• /./.... ,t.. � • ' �• •s. .-_,L.. .✓. 1 4Prk7c 1N •i + E. i4 SCr1 ; �. 2E 72, 9Ct' S/ruc/a.n z.,8O0 1-4."d AsseS`ec /98/ 9&, 7D0 o/a.! 77,1000 RESENT 25, 200 Attention: Jerry =oarcrar. Planning Cor.r.i t t :e /02 Bao Citi of Fridley t .re., Gr: frr sz ).c tc ._ty of , , t4r. • 1 ,E ef Yrrp- y, ( le^-7 and r1L'?incs ) lccatea at 6217 Centre.' Ave. ?:. . Frilcy, ' r. , w -!ch le-al description is; lots 20 and 21, auditors cu":ivirior. Hurter 2?, ^: Ccunty, F'n. , ac. in, with the fcliowing exceptions: furnishinm and arl:iancer in the -.cuss and a:1 tools, yrrk JEnches, shelving, ca:inet-., F,�^ furnace an rrcncrails in F'►rage. All eclu i nest, power or r.?::; 1 u7u.?7 er inelden'__- t^ c_ t:.. ;r€-- -=. . _hc -_ a- _ total cf tee sale lr:ce offer it ^ : E1€;hi: Fi-e T.'.cur ar.d Cola: s, ( :2'5,000.00 ). This offer shall end=e sixty. ( 'C ) days frcm the date cf this 1:.-tr-..r.ent and nhall auteratically ex:irc at that time if net accepted. Or ..We,'Zoe •I se 4 .f 5eci,°.. /; 71ON, R11)4' 27 • $ `(s:z r6 A1eo.e, z.4. W./4) =-• o e PReSENT NO•4 /5-W ? •-•,Z7 74 •-- a •--oQ — 701h, AY — — P1 61.71 /1500 90 O/ I is c: :.w 1 I • 299 , 300 2: 2/ I TI Tv+,c - 30,34i 0. I v 0. •10 \+ IO \ w oSlo,000 �. 1. p` y I w '.., o '. g C.:-..) f"I r o. / IS1.7 • t - 75 CO NII , ? / 4" ' r - R N o .� NEA .art-i I 14 -.10.771A- 4 II 54 SO•S9'Oi../ o y`j1\ oc.- ,.9 i S, Co .. 1 5' ` ' , -;•.,i.." 4n./ 1- C 01 1 a c`0o ` / e ..' o opoah a • - I 111. 411 s '44 : p4 rti • ; 'r ti N ~ + `O N. . I y Cc: I c t , p' c ( .00I O v \� . 0 . w 1 '� OI .. � , Iv o o I o I o V, �� ' I A - - 1 - ii, • • I \i.1'.t / r II I °2f V w v • moi' \ ' \ +2. h % �1. _ y O o '• i O LI: t, y�. I O a �\ o o �• : \ y./ 00 0 I - <<'s ti? • rB o Fir. 4 �b���` r 4. '- j 9S.« �' - ss-,� 19-°v �. •t a•��-5.,/s P.--,...00,i •< s d V !s o ',. I I w w • Cos• :0 o -- ,• / I AV 040,0 c rt�oo �o � �' �/'l, / C ten,` , do til4:5S '' r, M A • b4 y - N w I --- ..; 4. I ��'`� w Q c o ��'i� 0°` \O • 4 ti C--_- .� I 4/ ,,. w AY a n p A 1 - .. /ca 7e. . -. •_ /04.00 sZ 00 •.. — —— _ •_ �I d.78 ' . .f 0.47'14 L 1 •- :. I . S °oie`. •o c,� g, °.�o �g$�-ui off' � sr" •�•°aa� '' 3rx. i Cg* tifF _ •'i VCiY�7C• .7G� 7i R. ! i Cr= § • rQ nn. 28 THE CITY OF E ••N..•.•..p.. N..7 •.•.•.. HOUSING N..:h•a::"\ ..... ..:.N • N�N.NN.N_ �N.N GN•:••• and ....� .,. ..N. • l :2ir .N. , .=.• ...N. REDEVELOPMENTi`='�N'� '`'�N' MEMORANDUM..••..N. `I� ••.NWI AUTHORITY ....N.. :r:i..... : ':::• I6:4 ••• MVO •WorailININIIPOO. MO FRIDLEY •• 'ROM EXECUTIVE DIRECTOR MEMO NO.83-27 •'ATE April 7, 1983 TO ACTION INFO. U BJE CT ST. PHILLIPS REQUEST FOR "RIGHT TO Housing & Redevelopment Authority x DEVELOP A PROPOSED 202 PROJECT IN PHASE III OF THE FRIDLEY MOORE LAKE REDEVELOPMENT PROJECT." St. Phillips Human Services, Inc. has requested a "Right of Development" from the HRA for the above noted project. The project is similar to the one ap- plied for in 1982 and denied by HUD in their overall ranking of projects. The project as presented will generate approximately $325,000 in usable tax increment funds based on conservative capitalized interest estimates. I have attached a "Right of Development Letter" for this project for your consideration. We have taken the necessary action requested by the HRA for soil compaction tests on that site. Soil Exploration Company is working directly with the architect for St. Phillips Human Service, Inc. to provide the appropriate in- formation they need for site analysis. JLB/j h • N•NN......N...•N. TIME CITY OF .... .:::ii.�:.-......• _• L N•N •• N .•NN•••.• HOUSING ::� ;....N ...:�:: ':N';•--- ``•N.....N. ..: Arsorgif •• �• MB: •NN and --,y^ (11; REDEVELOPMENT W„ • 4 2000 ••N• AUTHORITY ; f ::::: ::::: . F F71 D ...44 . :::N•••. April 15, 1983 St. Phillips Human Services, Inc. 6180 Highway #65 N.E. Fridley, Mn 55432 RE: Right to development 202 Project in Phase III of the Fridley Moore Lake Redevelopment Project Dear St. Phillips Human Services, Inc. : The Fridley Housing and Redevelopment Authority at their April 14, 1983 meeting approved your request for Right to Develop a portion of Phase III of the Moore Lake Redevelopment Project. This approval is based on your preliminary presentation to the Housing and Redevelopment Authority on April 14, 1983, for the minimum development of a 60 unit Elderly /Handicap Housing Project. This approval is also contingent upon the following factors and these contingencies shall only be removed by decision of the Fridley Housing and Redevelopment Authority. 1. That until final plans are accepted by the Fridley Housing and Redevelopment Authority, (final plans include final architectural drawings, letter of commitment for financing and a signed disposition agreement between the Fridley HRA and St. Phillips Church). St. Phillips Church is acting on its own risk and shall not assume that the Fridley HRA is morally or legally bound. 2. That St. Phillips Church proceed to work on the submission of a 202 applica- tion to the Department of Housing and Urban Development. Approval of site plan by the HRA will require St. Phillips Church to proceed on a schedule of work leading to financial commitment for construction to begin October, 1984. This time period will be extended only by the approval of the HRA. The schedule of work shall be jointly established by the HRA and St. Phillips Church upon acceptance of this selection. Each party shall keep the other informed of potential problems and delays. If, in the opinion of the Housing Authority, St. Phillips Church is not proceeding in a timely and positive fashion, or if the application submitted to HUD is denied, the HRA may withdraw this selection. 3. That the selection herein given allows St. Phillips Church exclusive rights within the law to promote, study and plan for the redevelopment of that portion of land area in Phase III generally decribed as follows: The southwest corner of Central Avenue N.E. and Rice Creek Road N.E. _ St. Phillips Human Services, Inc. Page 2 April 15, 1983 4. That the HRA shall guarantee St. Phillips Church that they will acquire the necessary property for the project. (The actual site can be redefined based on the actual cost of the site to the HRA provided the site meets the necessary City codes) and sell the project site to St. Phillips Church for the project. The purchase price to St. Phillips church shall be determined by a Court established or negotiated value on the original acquisition less $325,000 in tax increment funds. (The $325,000.00 in tax increment funds are based on the development of 60 units with a building value of $2,000,000 paying an estimated $69,000 in taxes). Other reasonable and legal alternatives for public assistance to the developer shall be explored by the HRA. These funds may be available to write down additional cost on the project. These funds include, but are not limited to, 1984 Community Development Block Grant funds, additional tax increment funds from the overall district, delayed assessments, donations, etc. 5. That St. Phillips Church agrees to provide the HRA and its staff such plans and financial projections as necessary as determined by the HRA to allow for accurate land use analysis, site plan analysis, financial analysis and legal analysis. 6. It is understood and agreed by St. Phillips Church that this selection may be terminated for cause by the HRA at any time prior to the execution of the disposition agreements and that St. Phillips Church agrees to hold the HRA harmless for any damages or expenses incurred under this selection. Please contact me when it is convenient for you so that we may be able to set up the necessary work schedules so that the project can move ahead in a timely manner. Also, would you sign a copy of the letter enclosed and return it to me so I know that you have received and understood the conditions laid out by the HRA and will proceed in a timely manner toward final action between yourself and the Fridley Housing & Redevelopment Authority. If you have any questions or if I can be of assistance to you, please feel free to call me at 571-3450. Sincerely, JERROLD L. BOARDMAN Executive Director Fridley Housing & Redevelopment Authority JLB/de St. Phillips Human Services, Inc. C-83-26 By PLEASE SIGN AND RETURN .,- -,oc. I ) . '°�°`► 31 ai 3 � � ova 3 , i Th 4 e ; - p i I d \___:____.7 , _ 1. .: lin r_k....xNr MIMS ,:, N i o :0°' -0 , Y. ryr W Mal . ,_ III I i v_ IC \r\-\ -\. \ —�ii 1 \ \\ =.. i � • N. I i+ •\ r z `J 41. 9.14 t ►� •i - - !/ i w is J r a W / .. - i • • '�: • • . • - 32 EXHIBIT 1 . 00 5/25/82 BONK ISSUE DETERMINATION FOR: FRIDLEY MN 1983 TAX INCREMENT FINANCING CONTRACT COSTS 395, 586 LEGAL, FISCAL R ADMINISTRATION 2. 50% 12, 500 SUBTOTAL 405, 086 LESS FUNDS AVAILABLE: CASH FLOW DURING CONSTRUCTION 17, 890 17, 890 SUBTOTAL 390 , 196 LESS INVESTMENT [1 . 00 YEARS Of 13 . 00%] 64, 999 NET PROJECT COST 325, 197 INTEREST DURING CONSTRUCTION [2 . 75 YEARS @ 12. 00%] 165, 000 PRINCIPAL AMOUNT NEEDED 490 , 197 DISCOUNT ALLOWANCE [2 . 00%] 9, 803 SUB TOTAL 500 , 000 ADDITIONAL CONTINGENCY E . 000%] 0 BOND ISSUE 500 , 000 DISC 1 FILE 30 PROGRAM COPYRIGHT BY EHLERS & ASSOC, INC . 1/12/1981 i 364 LLI I— ' /f..! /7•101 Li ^"J ! 43:5r: ` "� 0 i i 3'yl � „/ i E— :flay e �20 a0,'' ? • }' N , /ft Lr I r z ' Jo �� o ` q J> Z h ` 3 ' 32• , O9 °fe/3� ° rr • w --— . s-o .j _ • z O 4,•311 1-fd7 1fJf�._ fol NI �� 'o; �j3�� a 4 Ovr or/ V to 3/f 4305 7f I i� e Q .1y=i 1e, . . 1!i It �... �R ;)- ..(2; t. �/ , ,639 X06 ° N ,x i •01 % 14 i � 1�lb '� � • e -63-RD. - ,,, i. . , - 1 1: 41° o i► Z I �,"(%,gni P Io�L ' �oae ! b I •• y W-"B�3:{�! 6 pop, • ,. •/` ••Ss j - � �• „ (Dm • ° , 2 14 ADO $... tar a te27► , 1 e __, •4 ii' . 307 �' o L-: "/. • 1 cf I_ s, . . :.1. 1 (,soo) 8',' �►•• ; • o AUDITORS k , i `� T./.0.0,11114/ s,..-• 4229 `i �.II (gz . uk I I , ° —s4RF,�mFa 'S �.. 3*as Q '' ----- ___.--Ali, .,/ (2 vo 0 f. • .. .' --a x i SAL./7E,, && d rr--.'l� I I Boo' Z C, trs/,‘,erve W I , ' 7 R 1 1 " BD NQ. 8 8 ��r t e' .GaR9 1 3�CtE oop `•, r • oAEFCE (2¢O �. �;� ti y` �,.:,5 I32'� we ►��\ti��� I. fr„. iro O fd, e4Qiro'JO 1�r, 0 h 1 i . (......z42....... I a} , ' - C.,f Z" o 10 6 e u to , b�3`� N. (.... r 1 1' j A. -� e't ire. if/ f/!eOn1//K li.I•CO. . 7.---.7.-"---...„.? .1 • ‘ a§ % • ;-:, 1 . u_sr—: 1 ice – -- 0.90 a[is, 11° �� B 4– ‘ ......._ _ � `___ _.,.._\._j . .; S �•23 r.' lnomv.rA rime•t� irr � R 34 FINANCIAL 35 OTHER ITEMS I 1 INFORMATIONAL ITEMS ONLY- NOT ON AGENDA I k THE CITY OF �•�•NN•• 4.4-01 HOUSING ;Immo" �.... ..:r:::•�• :• and ... ' REDEVELOPMENT N•.r MEMORANDUM \_--: (\VA AUTHORITY ...... OWO DSO ,�,. • ' : „ i.......! I FRIDLEY FROM EXECUTIVE DIRECTOR MEMO NO. 83-22 DATE March 28, 1983 TO ACTION INFO. SUBJECT Nasim M. Qureshi y Status of ELO Engineering IRA X As we had indicated to the City Council and the HRA during our previous discussion on the General Reserve Fund System, ELO Engineering had intended to move to Coon Rapids to develop a new facility. They had decided not to locate in Fridley because of the benefits that were being promoted by the City of Coon Rapids to draw in new business. We have been working with Mark Haggerty, who is representing ELO. Mark has convinced ELO to hold off on making a commitment with Coon Rapids based on the possibility of providing assistance through the General Reserve Fund System that we are looking at with Piper, Jaffray & Hopwood. If they stay in Fridley, they would be looking at expanding their present facility by connecting their existing building to the South. The building to the South is presently vacant and they have taken an option on the property until June 30, 1983. Mark has indicated that they have been able to arrange bank financing on this project subject to a workable reserve system. This may be an ideal first project for the reserve system provided that the City Council and the Housing & Redevelopment Authority concur with the programs that will be presented by O'Conner Hannon for the system. We will continue to work closely on this matter and keep you informed on its progress. JLB/de 34_ ., S 1/2 SEC. 2. T 30, CITY OF FR/DLEY CITY OF SPRING LAKE PAI 3\' •'4 C00401 I A- CIE 7t• MC l _ �'• -�i - it • . ..r XCl ♦ 81ST i 1 i• 1 .••'''', - ' _SI N.E. - - %4 ..! -. 1 I r..a w 44 /, kt, f j ,-, :iiiiii2 ky •Q i _ r...._iIl•y_�� 1 i WYLO*000 . . � I -` 1 LANE ' ...4.. .....,-..-__, a y ` _= 'J �: G / s , . t v Jr 1 .• a y O. ...--"- 1114 . W Z r t�� � -r g ,l �y ��'.�a * 6 r121 E • //r,, - __ . _� fa- f"---. '.�., W W t 3 a r i W Naril 'r u , J , . • .� g i t 1 i t re. .._ .. , a 1 80 TN aAVEr N E : ' " 1.- - ..., x i ma -Lr q 1 k l 1 : : 1 1 A - .1 ♦ ' E (1):::• } ROSEDA� •R sr.. ♦ a I4.4 1 „ I ♦ Rc$EDALE • I �Xr� N . ��— a r , EAS. 04 1 .- �. ♦= 1 L s t . l 1 s • ' l 1. 1 11'1 to , e Id ' r L 3 N P' Itc=am .r E •a - 78 1/2 AVE .r. --$y',- - -.fi/ri E51 p 1 _ • + sow, 1 /b4.. — ` 1 1 I. p51 p P. 1 iOri ! i�lQ ....-4"...... i < tl'1:••✓ :12:r FE pp O Q ... _ 1 r X14 ♦ .�.- -- 0011,5•• - --1 . •W : 78 TM AVE . 5E I 1 e1 i a - • Ar. ■ ‘,14,‘ 14 •44 . 111 O rn / I .s.--,1_ - t -sfl10.+— .IiV_,t n.., ♦ •..r/ -Irw-•a ta II I ! • ! Lam,: it 41 V... iN .R . TE U Ieci i 1411% . . L .____ - .-. i _ s—,..,r .... _ ______ 7 TM-- AY — ty �. •ar !W CG.nfJ • iJ •. T •I►:1 • 3Ft s :� • :• t liiliiliilli'i� illt:>/ _b_ • ' ' t..'IT t — I in N , -31- I . '2' s !N• .S O I. 0•1 i LI \I s 1 •I V i 12 \t.y\?\' w �r '0 I N. . •F'Q• \ I •4, 41 I \ o lki I — 0,• '', \ :: 4044\.<1t-or7-1W4T::i 1 :lir I Ii: : I N i\\**%--a � t ._ . I h. til Q .- -......---- ....,.i ra. c0 c2 1 !.,i 110 •\ \ •I `L , • • s; 0 • • Q . ` •, N 1 cr \.„.46: -. s• --1-- \".. s• N , 41 011 \ cv • *: '\•\\ �,� • X I i 1 I c . , I — , , / + 1 I a,r /da . -� ?. .i j `91. 1 3 THE CITE/OF •.•• ___=:=••fi===�=i••=•=_____.... N�•.F N.N. M.l�••.• N.=.•.• :. C .••N..... •N.•.•NN. • Laiiiir- HOUSING �_� •••'••• 0 •••.. ___•• C EEL. and •� .,. ..... • ' MEMORANDUM \•=1,111„: • } REDEVELOPMENT ..... :::'Y' '. .•..It...; ... .5... DOS SOO ... :.N• _ ' i •N• • ..•N AUTHORITY sec...' ::... .••_ : e 11.10..• FRIDLEY _ =..N.:.. FROM EXECUTIVE DIRECTOR MEMO NO. 83-30 DATE March 8, 1983 TO ACTION INFO. SUBJECT Housing & Redevelopment Authority X Possibility for Stock Piling Fill for North Area District If we are going to make the North District work, it will take a considerable amount of granular fill to assist projects with major soil problems. As one means of providing this fill , we are considering the possiblility of setting up space for stockpiling excess granular fill from various projects within the Twin Cities Area. I have been working with the City Manager and the Public Works Department in trying to set up the potential for stockpiling. I will keep you informed on any development with regard to this item. JLB/de 37 WriterqUestiàns FridIyHRA1 But the HRA apparently operates The upcoming mayoral report To the editor: . under entirely different economic (published just before elections) Two years ago,the Fridley Hous- principles. won't highlight the quagmire the , ing and Redevelopment Authority The final insult to taxpayers in- HRA has created. The city council (HRA) used federal tax dollars to telligence is to learn that Jerry has seems to feel they don't have con- buy the Fridley Hardware building rented the building to a "flea mar- trol or responsibility for the HRA for something like$200,000. ket" but after several months has yet the mayor appoints HRA mem- one knows our , ' •• sta e never received any rent. bers. • nig" �,���n�• • to urn. Think for a minute. Money the yhile Holly Center is 1 federal government in effect bor- unable io ittrA ilt.a.._�, `•ijor c v c HRA Executive Director rowed, used to buy a building to ire,your A stiill]l envisions Jerrold (Jerry) Boardman then leave it vacant and in desperation, nnolfi' major shopping center elected to leave the building vacant, renting it out to a group that pays across the street. baking in the hot summer sun. If a you no ren o I .it Can we taxpayers afford to allow few of us taxpayers had directlyg r f crag an ti4,96.T.•_! c .6 this financial bungling to continue? invested money in this building, eante 'w'? # t+++w a Michael J.Larson would we have left it vacant and 7trr'i-d BRA a d�gur city Fridley made no effort to produce a return r i v e s1itfrc rea rd'for'tax on our investment? Ofnot. oars. i 50 6230 Jupiter Drive N.E. Fridley, Minnesota 55432 March 23, 1983 Jerry Boardman HRA Director 6431 University Avenue Fridley, Minnesota 55432 Mr Boardman, If the enclosed article in the recent Fridley Sun is correct, I 'm just as mad as Michael Larson. We have been home owners and taxpayers in Fridley since 1957 and have seen a steady deterioration of grocery shopping facilities in our area. The exodus through the years of National, Penny' s, Red Owl and I understand that Cub will soon depart, has left Fridley with little choice in grocery shopping. To the average taxpayer, paying $200,000.00 for the hardware building seems out of line. A stranger driving through Fridley' s "Downtown" is not impressed with the vacant buildings and barren lots. :',hat do you eorle have n mind? I will look forward to your reply. Since e 11100 Keit � w i c -A...e....ec, )14.....„,,, — 7716-44.4 3 c), / '.1'3 N Larson : role of HRA • To the editor: First, our HRA tears down the excess of $200,000 for landscaping Well, our property tax park, cutting down beautiful the new park. (Taxpayers may be statements sure made interesting mature oak and other trees. interested to know that at the time reading this past week. Second, through their tax incre- the bids for this project were ac- The portion of our taxes that goes ment districts,they restructure the cepted last week,the drawings ap- to our schools is justified because entire area around city hall. The parentiy made no provision for the the education of our children is our buildings within the district won't handicapped.) most important social endeavor. provide additional tax dollars for The net result? The school board sees to it that our our schools,the county or the city. The HRA spends something like tax dollars are spent effectively and For up to 20 years.the property in a $500.000 to achieve a marginally efficiently. tax increment district no longer improved park and parking area, • The city council should take ac- contributes to the growth in our tax the burden for funding our schools tion though to reduce the role of the base. The net effect is that that and government for the next 20 Housing and Redevelopment Au- burden is placed on homeowners. years is placed more on the backs of thority (HRA). I'm convinced Third. the HRA spends around homeowners and we have a park we're headed for trouble that will $300.000 buying the Fridley Center with young trees to replace a park affect our ability and our willing- building that houses several busi- with mature trees. ness to support all our taxing dis- nesses. The purpose? To bulldoze For my money. the more we. tricts,especially our schools. the building to replace some park- restrict HRA activities the better Look at what has happened to ing areas. for us all. Eisenhower Park as an example. Finally, the HRA will spend in Michael Larson, Fridley a2�� /9Y3 • 14---) Yuko••i.••411 f r;.:1'in.r...,++n• .:=.,z .........,. - .. 4-. .. Writer criticizes `urban renewal' . To the editor: ceived special recognition from the' In 1965 the voters of Fridley told governor, no urban renewal — no the city council, at the polls, that special tax incentives. they didn't want what was then But alas.The pro urban renewal called Urban Renewal. people don't give up.They are using Most of us know there is no such the same old book with a new cover. thing as a free lunch and could see- All the same old claims, the same the folly of urban renewal.We could dangers. Housing and Redevelop see that all the projects throughout ment Authority still has the right to the nation had failed and Fridley's condemn property; the same way would surely fail also.Fridley quali- of robbing the established business lied for urban renewal only because to give a handout to the new busi- of the flood and tornado. ness while telling us it will cost us Mayor Nee and his followers said nothing. Believe me, it's the tax- we needed urban renewal to re- payer who must foot the bill. You build; to redevelop the flood plain; and I make up for the lost revenues to remove those ugly power lines of the businesses that were driven from University Ave.; to attract out. You and I pay for the lost new industry and commercial de-' revenues that would normally have velopment; etc. They had a $3 been collected from the newly at- million,five year plan. tracted business. We, who believe in our free en- Now they call it "Tax Increment terprise system said,"We can do all Financing." but it's just — Nee's of these things in less than five Urban Renewal. And the years without urban renewal," — philosophy seems to be:never mind and. we did. People rebuilt their the people said,"—we don't want it tornadodamaged property and in —,"just change the name and give nearly all cases greatly improved it to them anyway, after all, big their property. Unless the Missis- brother knows best. sippi rises above the 100 year year Look what Fridley did with tax flood of 1965, the "Fridley Flood increment financing compared to Plain" has been made safe by the what they are doing with Nee urban dyke built without urban renewal. renewal.Example: the half million The ugly power lines are gone from dollar "improvement" program University Ave. — no cost to the around city hall. taxpayer. We attracted so much Jack O.Kirkham new industry in 1967 that we re- 430 67th Ave.NE Fridley Wto O �y R R �m rt F? 1 S Rpt Fl* �Cn ,� I 1 1 1 Ig 1 el 11 IR E rr E 5 i 4 U' LP v 7:r. in o Y o Y > > Y o a. 0 0 0 0 0 !'S w N ... OS O v :%5- ' . !�rr 'at F+ J F. N O� 9 �Rjj y LI > 0 -J N 0 e o km ...... ~ 1A1 N .I 0! ED O ���ttt F+ Po O i 1 0* a O O S' R 5 N. A G fD Mp• v O j ifa 0 0 o ). i ag Y > Y s. o II.+Tr 0KN M v 7 E� .•` N 1111 O �+ i i y > O 14 0. ►pO 1171 A N In * . B R N W 7 a. O n �t K fD y ►0 G. I FFFFa��� O p K N Oo 0 41 N :3i R W O rf 8 0 OI% 0 O0 O Fl F r El Ell Fl Fl R.1 rgf Fr.. fp r•rrA Ir• Rr• rrr• fDr•inr• �• ►��- fD ►�'• A r•RFRF�•RF�•R r•►7 K O i rt pr- p p�p �K• p ►K- pp Ow r• Ow Opwpwc.07 3 3 7 Qg 7 Q, 7 77 B p7 p 7 p 7 �! 7 .--5 o [l 51, ii ic,. .... -g. x ng..c, Li . . i 0 t0 i j lg.al 5 it: rr ..< a r i t_. --z i< . 8 � c R a 1 v Ir N CD V St. Poul Pioneer Press/Dispatch Monday, February 2L 1983 , r . Sliding_tax • revenues________ _ rraiSequestions abonds _. , By Patrick Boyle ' -. - `It'a not realistic to wry that a Los Angeles noes will default on its debt, bot there is concern about the lower ; Personal finance It was a bondholder's nightmare levels of government," said Tom come true. Gamello, a credri analyst with the States probably Mount San Jacinto State Wall Street firm of Prescott,Ball p y Park Authority sold $8.15 million & Turben Inc. "A state in trouble won't default on in revenue bonds in the early 1960s has to preserve its fiscal integrity, 'ts debts, but there is to build the Palm Springs, Calif., and that means local �� aerial tramway up the aide of the dependent on stale ofd could av concern about mountain. But train ticket sales fer." fell short of expectations, and in Rating cuts are often of as November 1966, three years after much concern to taxpayers as to local government. the tram went into operation, the investors. Government agencies park authority missed an interest sell general obligation bonds as a near what they were in the Great payment to the bondholders. The form of long-term borrowing, as- nDepression,"rwhothey said Guy bonds were declared in default, ing the proceeds to finance the 'manager municipal Wickwire,bond and, at one point,the interest pay- construction of schools, officePana for of twoy Group, Bos- meats were running as much as buildings, highways, prisons and ton-based mutual fund holding• two years late. other government projects. They also sell short-term notes in . company. "And we don't antici- edSucb horror stories are recount- may pate the strains will become more often these days by manic- , anticipation of using expected tax that that the The strains roves- ipal bond traders watching the de- receipts to pay back the lenders. I torhis prows much assuredri ves- clice in the credit ratings of states .a mately being paid off." and local government borrowers. Rating important Indeed, even long-term The long recession has pinched the The interest rates are often holders f the Palm theSogs tax revenues of government ager- ' lower than what the government way bonds are being paid off,tram- cies throughout the nation,making agency would have to pay to boa- though a bitrbehind schedule. al- it more difficult for them to pay row from a bank, but investors Tram manager behind Ficker says past debts while still providing have an incentive to buy munici- that payments to arey services to the citizens of their pal bonds because the interact , now running about 1 bondholders months late, communities. earnings are exempt from federal, but that should beo back on While there have been no major and sometimes state, income tan- schedule theyby May . defaults since the Depression,lead- es. The bond rating-helps deter- ing bond analysts have lowered the mine the interest rate,and thus is But of more immediate concern credit ratings of hundreds of gov- extremely important to the issu- to bondholders than outright de- ernment agencies, raising goes- ing agency and its taxpayers. fault is what can happen to the tions about how secure an invest- A difference of 4one-fourth of a market value of a bond backed by went is in the debt obligations of percentage point in the interest a government agency whose bond municipal governments,school cis- rate on a $100-million issue could rating has been cut by Standard& trick or other entities. cost the agency an extra 250 000 Poor's Corp. or Moody's Investors •• ,• . ' a year in interest payments,or 5 ServiceInc., the two major Wall Street bond-rating agencies. Risk higher • i�r`` Ilion over the life of a 20�ear ' bond issue. • Most analysts and investment idvisers agree that investing in municipal bonds is a little more g Some analysts contend that, given the economic pinch govern- risky than it was a few years ago, meats are facing, the prospect of primarily because so many mu- a state or local government bor- nicipalities have gotten into sari- rower having trouble meeting its ous fiscal trouble. -- -� debt payments on time should not A recent survey by the TI[cmSd- be ruled out.But at the same time, experts say, certain municipal pal Finance Officers Association bond issues continue to rank found that U.S_ci ides were ezpect- among the best and most secure of iiig an average 1982 bud et deficit investment values. of ;10 per capita, comps a "The strains today are nowhere fcaPita i .•the National Association of State Budget Officers says that the 50 states, which ended fiscal 1981 with an aggregate surplus of $5 billion, expect to have an ag- .gregate deficit of $2 billion in fis- cal 1983. St. Paul Pioneer Press/Dispatch • Monday, Feb. 21 , 1983 S&P recently lowered its rating on long-term Treasury bills used management of the public entity cause Texas has an_ ;11 billio- t California's debt from "AA- to be about 65 percent, but that and their ability to raise addi- twdge_jyrplus and issues 3e lus" to "AA" — better than the the ratio is now about 75 percent. tinnal income in tight economic ids.its debt is mom attracti- &P ratings of only seven other In other words,the municipalities times,"says Robert Hedrick, vice to investors than is Vira;n,a•S. tater and worse than the "AAA" must pay more to borrow on the president and manager of public sting the state had as recently as public debt market finance at Crocker National Bank "Investors have to watch fa 980, before the tax-cutting ef- "That's a very serious rhange, in San Francisco. safety first, then liquidity and tht- ects of Proposition 13 began to be and there does not appear to be Because of these intangible fac- yield,"says Marilyn Cohen, a bor. elt. During all of 1982, _Moody's any reason to believe that the ra- tom adds_, two issues with tie specialist with the Beverly Hil►, owered its credit rating-6j 263 do will improve,"Kelley said. kame credit rating mAy not trade Calif., investment firm of Canto issue com_pa�g a the§arn prize. ,For example, Fitzgerald & Co. "It used to be tk. O onl 62�uctions in For a bondholder, the change in ne says, both Virginia and Texas other way around. You looked-,- 'g81 Y a credit rating of the government agency backing his investment is have 'XAA bond raticps-,but 1 yield first." These cuts have not only affect- usually of little concern if he plans _ _ -_ d the prices of some bonds al- to keep the bond to maturity. If -eady in the market,but they have the investor buys a 20-year gener • - ilso raised the interest rates gov- al obligation bond with an 8.5 per- Irnment entities must pay on new cent interest rate, he will get an iebt issues. This can be good for interest payment of;85 a year for he investor looking for tax-free each $1,000 invested, regardless income, but bad for the state, of what happens to the bond rating school district or power authority or to the bond's price in the mar- issuing the bonds. ket. "We like to say that the triple-A The investor is usually only con- rating is an endangered species." cerned about the rating or the said Joseph Kelley, assistant di- market value if be decides to sell rector of the Government Finance the bond. Bond specialists say the Research Center of the Municipal effect of a rating cut on bond Finance Officers Association in prices is not easily measured.The Washington,D.C. price of an individual bond in the Interest rates on new municipal secondary market depends on a bond issues tend,to rise with the number of factors, including the amount of risk investor takes relative size of the government in buying the debt instrument,and agency, the volume of bonds out- Kelley says those rates have in- standing and the extent to which creased significantly in the last the agency's financial difficulties two years as a result of changes in became public knowledge before the tax laws and the fiscal prob- any rating change. lems of issuing agencies. "All municipal bond credit rat- Kelley says that the ratio of mu- Ings are based on the economy of. nicipal bond interest rates to rates the region, the soundness u( *el HERRICK & NEWMAN. P.A. V,wGR C.MEwwICK ATTORNEYS AT LAW 11279 UNIVERSITY AVENUE h t DAVID P.NEWMAN FRIDLEY,MINNESOTA 55432 April 13 , 1983 571.38S0 • Mr. Sid Inman City of Fridley 6431 University Avenue N.E. • Fridley, Minnesota 55432 Dear Mr. Inman: You inquired as to whether or not the hardware building owned by the H.R.A would be exempt from real estate taxes if the premises were leased to a non-profit organization. It is my opinion that the building would not be exempt from real estate taxation. In reviewing the statutes on this matter, it is best to assume that all property is subject to real estate taxes unless an explicit exception is provided. There are some exemptions for institutions of purely public charity, M . S .A. Section 272 .02 , Subdivision 1 ( 6 ) . However, I do not believe that the Lions meet this definition. There is an attorney general ' s opinion which does state that property leased to a non-profit curling club corporation would be taxable , Op. Atty. Gen. , 4-J , Nov. 13 , 1970. There are some additional statutes which appear to be somewhat contradictory and are confusing. I have reviewed this matter with both the League of Cities and the Anoka County Assessor and both of those parties have informed me that it would be their opinion that the property would be subject to taxation. Regardless, even if the property were deemed to be exempt , M.S.A. Section 272 . 68 Subd . 3 , states that if the public author- ity leases the property and it remains exempt from taxation, then the rent must be a reasonable rate and 30% of all rental received must be paid to the County Treasurer. In summary, it is my opinion that the property is subject to taxation, although, a contrary argument could be made. As a practical matter, though , the County Assessor will take the position that it is subject to taxation and even if it is not , 30% of all rent must be paid to the County Treasurer. Sincerely yours, David P. Newman DPN:kao •Ac: Jerry Boardman MEMORANDUM April 7 , 1983 MEMO TO: Mr . Jerrold L. Boardman Executive Director Fridley Housing and Redevelopment Authority MEMO FROM: Mr . David P. Newman P'— Assistant City Attorney SUBJECT: Clothing Liquidators, Inc . You inquired of our office as to whether or not a mechanic ' s lien could be filed against real property owned by the Fridley H .R.A. It would be my opinion that it could not . The reason for this is that the courts have generally held that mechanics liens could not be filed against property held for the public purpose , Burlington Manufacturing Company vs . Board of Court House , etc . , Commissioners, 67 Minn. 327 , 69 N .W. 1091 ( 1897 ) . I should caution you that every court decision on this topic has dealt with property which was being used for public purpose . In the present situation, it could be argued that since the H . R .A . was leasing the property to a private individual that the property was not being used for a public purpose . However , it would still be my opinion that a lien could not be filed because the reasoning behind the court ' s decision still applies . The reason why the courts have not allowed the filing of mechanics liens is based upon M. S .A. Section 465 . 13 . This Statute provides that once a judgment is obtained against the municipality, then upon the judgment being presented to the city clerk, he must immediately pay the judgment if there is sufficient funds available . The courts have reasoned that since there is this method to insure the payment of judgments, then contractors do not need the extraordinary relief which is provided by the mechanic ' s lien statute . The result is that the contractor cannot file a mechanic ' s lien but upon obtaining a judgment against the City of Fridley, he must then be immediately paid . In reviewing this matter , it would also be my opinion that if the contractor were to sue the City for the amount owed , that he would prevail . The basis for this opinion is that 1) we instructed the tenant to procure these repairs so he was acting on our behalf when he had the windows repaired ; 2) the H . R.A. has benefited from this work and it would be inequitable to allow the H. R.A. to obtain the benefits without paying for them. In summary, it would be my opinion that the contractor probably could not successfully foreclose on his mechanic ' s lien but that he could bring a separate lawsuit against the City and prevail on that . .N! I