HRA 06/12/1986 HOUSING & REDEVELOPMENT AUTHORITY
THURSDAY. JUNE 12, 1986 7:00 P,M.
QTY OF FRIDLEY
AGENDA
SPECIAL H(XJSING & REDEVELOPMENT AUTHORITY MEETII(
THURSDAY, JUNE 12, 1986 7:00
LOCATION: COUNCIL CHAMBERS (UPPER LEVEL)
CALL TO ORDER:
ROLL CALL:
ADOPTION OF AGENDA:
APPROVAL OF MINUTES:
Housing & Redevelopment Authority Minutes: MAY 8, 1986
UPDATE ON DEVELOPMENT AGREE4ENT WITH LOU LUNDGREN . . . . . . . . . 1 - 1D
RECEIVING CDMMJNICATION FROM MR. FRED LEVY 2 - 2D
UPDATE ON WOODBRIDGE PROPERTIES' LAKE POINTE CORPORATE
CENTER DEVELOPMENT 3 - 3A
RECOMMENDATION TO CITY COUNCIL TO AWARD CONTRACT FOR
DEMOLITION AND SITE GRADING PROJECT NO. 163 4 - 4B
RECOMMIENDATION TO CITY COUNCIL TO AWARD CONTRACT FOR
WATER AND SANITARY SEWER PROJECT NO. 162 5 - 5A
APPROVAL OF S.E.H. CONTRACT FOR 100 TWIN AREA DESIGN 6 - 6A
APPOINTMENT OF TECHNICAL ADVISORY COMMITTEE FOR THE
UNIVERSITY AVENUE CORRIDOR STUDY 7 - 7D
APPROVAL OF BID TO MOVE HOUSE AT 5747 CENTRAL AVENUE
N.E 8 8B
PROPERTY ACJQUISITION REQUEST FROM MR. GARY PIERCE -
6132 CENTRAL AVENUE N.E. 9 9C
RECEIVING COMMUNICATION BMW-INFIELD . t . 10 10A
CLAIMS 11
OTHER BUSINESS:
ADJQURNMENr:
i
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT COMMISSION MEETING, MAY 8, 1986
CALL TO ORDER:
Chairman Canmers called the May 8, 1986, Housing & Redevelopment Authority
meeting to order at 7:15 p.m.
ROLL CALL:
Members Present: Larry Conners, Virginia Schnabel, Duane Prairie,
Elmars Prieditis, Walter Rasmussen
Members Absent: None
Others Present: Mayor Nee
Councilman Goodspeed
Councilman Barnette
Councilman Schneider
Nasim Qureshi, HRA Director
John Robertson, Community Development Director
John Flora, Public Works Director
Rick Pribyl, City Finance Director
Julie Burt, Assistant Finance Officer
Dave Newman, HRA Attorney
Samantha Orduno, Administrative Aide
Richard Nbchinski, Developer
David Weir, Woodbridge Properties
Gene Ernst, Architect for Woodbridge Properties
Linda Fisher, Legal Counsel for Woodbridge Properties
James O'Meara, O'Connor & Hannan
Mr. & Mrs. Lou Lundgren, Developers
Paul Ruud, Anoka County Highway Engineer
John Olson, Assistant County Highway Engineer
Bob Roscoe, Consulting Engineer for Anoka County
Bob Schroer, Bob' s Produce Ranch
Dick Harris, H & R Enterprises
APPROVAL OF APRIL 10, 1986, HOUSING & REDEVELOPMENT AUTHORITY MINUTES:
NOTION BY MR. RASMUSSEN, SECONDED BY MR. PRIEDITIS, TO APPROVE THE APRIL 10,
1986 HOUSING & REDEVELOPMENT AUTHORITY MINUTES AS WRITTEN.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN COMERS DECLARED THE MOTION CARRIED
UNANIMOUSLY.
1. UNIVERSITY AVENUE CORRIDOR STUDY:
Mr. Qureshi stated a meeting was held on April 24 with interested businessmen,
the City staff, and four consultants regarding improvement of University
Avenue in order to enhance the entrance to Fridley and Anoka County.
Mr. Qureshi stated tapes are available of this meeting in the event the HRA
members or City Council wish to review them.
HOUSING & REDEVELOPMENT AUTHORITY NEE LNG, NAY 8, 1986 PAGE 2
Mr. Qureshi stated proposals were submitted by the four consultants for the
University Avenue Corridor Study and it was the consensus of those attending
the meeting that Barton-Aschman Associates and Short-Elliott-Hendrickson had
the most expertise in engineering, urban design, environmental management and
experience in working with the Minnesota Highway Department. He stated if the.
HRA feels this is a high priority project for the City, it would be appropriate
to hire a consultant who specializes in this area of planning, design, and
upgrading.
Mr. Qureshi stated Barton-Aschman is one firm that has the capabilities to
undertake this project. He stated in their presentation, they felt in order
for the project to be a success, it should have the support of those persons
who will be affected.
Mr. Qureshi stated Short-Elliott-Hendrickson was another firm who made a present-
ation and would be acceptable for a project of this nature.
Mr. Qureshi stated what had to be decided was if the HRA felt this was a worth-
while project. He stated the estimated costs quoted for this study were .$20,000
to $26,000 frau Barton-Aschman and $17,000 from Short-Elliott-Hendrickson.
Mr. Canners stated the HRA was interested in enhancing University Avenue and the
business people were to cane back with a proposal.
Mr. Qureshi stated the business community should be involved in the planning,
but any funds they may contribute shouldn't be the main concern. He felt their
input and comments would be the most helpful.
Mr. Comers stated he felt there was a commitment though that had been made.
Mr. Bob Schroer stated a group of business people had indicated they would like
University Avenue cleaned-up and would be willing to donate sane funds to this
project in regard to fencing, lighting, and removal of weeds. He stated, unknown
to them, the City also had an interest in such an improvement.
Mr. Schroer stated representatives of the business community were invited to a
meeting with the City staff and the consultants and they were very pleased with
the presentation. He stated as far as the businesses contribution, they were
speaking about $5,000 to $6,000 that could possibly be raised. He felt this
would be only to clean-up the debris, get the fencing and sane lighting.
Mr. Qureshi stated those attending the meeting felt something should be done
to improve and enhance University Avenue and to hire someone who has experience
in this field. He stated the key element is working with the Highway Department
and to involve the businesses and community in a plan for this project.
Mr. Schroer stated the consultants who were at the meeting were developers or
planners who have done work in other communities and worked with the Highway
Department and city officials in designing structures and parkways. He stated
it seemed Barton-Aschman had the best contacts with the Highway Department
which may be the key to the whole project.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 8, 1986 PAGE 3
Mr. Comers stated the HRA has always been carmitted to such a project. He
stated, however, he thought the business people were working on a road plan
and were to make a final decision on the commitment. He stated he didn't know
there was another plan.
Mr. Qureshi stated there is no plan by the City, except for the improvement at
the Mississippi/University Avenue intersection. He stated the meeting was called
to hear proposals from the consultants and to evaluate if they wished to consider
any of these proposals.
Mr. Rasmussen felt more input is needed than just frau the business community.
Mr. Qureshi stated if a consultant is hired, input would be received from persons
along University Avenue, business groups, and governmental units. He stated it
would be advisable to have a Technical Advisory Committee to represent land owners
and businesses throughout the planning and implementation of this process.
Mr. Commers felt direction should be given to the consultant to advise them in
what boundaries to work with and then cane back with a plan they can afford.
Mr. Qureshi felt the HRA would have control because, if the consultant came
back with a plan that was too expensive, it could be prioritized.
Mr. Dick Harris stated he didn't feel Mr. Qureshi was entirely wrong in his
approach, but could see the HRA's concern. He felt maybe they should decide
what this project would be worth to the City and put some dollar figure on a
plan.
Mr. Qureshi stated if the HRA hires a consultant, they would receive a plan and
could decide what items they wished to include in the improvement project. He
didn't feel, however, the HRA would want to restrict the consultant from pre-
senting certain elements in their plan.
MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRIEDITIS, TO HIRE THE FIRM OF BARTON-
ASCHI`1AN TO UNDERTAKE THE UNIVERSITY AVENUE CORRIDOR STUDY FOR A COMPENSATION OF UP
TO $26,250.00.
Mr. Harris felt it was part of the process to involve residents and business
people in the development of a plan.
Mr. Schroer stated he thought they would develop a "Cadillac" plan and, if this
could not be accomplished, they would start eliminating items.
Mr. Prairie stated the HRA wouldn't be committing any certain amounts for this
project, but would be discussing all possibilities when a plan is received.
Councilman Goodspeed felt it may not be a good idea to ask for a "pie in the sky"
plan and then have to reduce it.
Mr. Qureshi stated if there is a Technical Advisory Committee and the plan was
way out of line, it probably could be handled at this stage.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 8, 1986 PAGE 4
Ms. Schnabel stated she fully supports citizen participation in this study and
felt it was essential to include the businesses and residents. She stated she
would support the motion with that understanding.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN COMERS DECLARED THE MOTION CARRIED
UNANIMOUSLY.
Mr. Qureshi stated he felt a member of the HRA should chair the Technical Ad-
visory Committee along with at least four business representatives, several
persons representing Hyde Park and Sylvan Hills, as well as representatives
from the Highway Department, Anoka County and the City.
Mr. Qureshi stated the meetings of the Technical Advisory Committee would be
open to the public and anyone could attend. He stated he would look to the
HRA and Council for names of anyone who may want to serve on such a committee.
MOTION BY MS. SCHNABEL, SECONDED BY MR. PRAIRIE, TO APPROVE THE CONCEPT FOR
THE ESTABLISHMENT OF A TECHNICAL ADVISORY COMMITTEE WITH REPRESENTATION FROM
THE BUSINESSES, RESIDENTIAL AREAS, THE MINNESOTA HIGHWAY DEPARTMENT, ANOKA
COUNTY HIGHWAY DEPARTMENT AND CITY STAFF.
Ms. Schnabel stated she would be willing to chair this Committee as she was
interested in the committee approach.
Mr. Qureshi stated the committee's activities would probably take about three
months with one or two meetings per month.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN COMERS DECLARED THE MOTION CARRIED
UNANIMOUSLY.
2. MISSISSIPPI STREET .
Mr. Paul Ruud, Anoka County Highway Engineer, appeared before the HRA regarding
the status of the Mississippi Street improvements.
Mr. Rudd introduced his assistant, John Olson and the consulting engineer, Bob
Roscoe.
Mr. Ruud stated the County has worked with the City for a year in preparation
of the plans for the improvement of the Mississippi/University Avenue inter-
section. He stated there were same limitations in designing the project as
far as available right-of-way. He stated there are a few points of contention
that exist and asked Mr. Roscoe to review the plan.
Mr. Roscoe stated the existing roadway has a three lane approach in either
direction and the intersection would be widened to a four lane approach with
a median and some channelization. He stated an extra lane will be provided
on the west side of University for access into Holly Shopping Center. Mr.
Roscoe stated on the east side, there will be a five foot sidewalk and a four
foot median, which is a little smaller than the normal six feet.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 8, 1986 PAGE 5
W. Roscoe stated additional right-of-way was to be acquired on the south of
Mississippi and along the Dairy Queen and Rice Creek Plaza property. He
stated there is a paving strip with concrete with trees on either end.
Mr. Roscoe stated they plan to extend the water and sewer to serve the proposed
development in the southwest quadrant.
W. Rasmussen asked why the widening didn't extend further east on the north
side of Mississippi. W. Roscoe stated they didn't feel it was warranted
to have to go through the right-of-way acquisition.
W. Rasmussen felt development is limited on that northeast corner, if the
widening is not extended further east.
Mr. Ruud stated they wanted to stay away frau acquiring right-of-way from the
private homes.
W. Prieditis asked where the County's plan differs from the City's proposal.
Mr. Ruud stated the City requested a wider median than four feet in order to
plant trees. He stated there would be sane trees on the west end of the
project, however, they felt planting trees in a narrow median creates a
safety problem. He stated he knows the City is trying to landscape this
area, but wondered if it was a prudent thing to do when handling all this
traffic.
Mr. Qureshi stated he would agree they don't need trees all the way up to the
intersection, but sane of the area would be bricked and sane landscaping
provided to create the environment desired. He stated the major concern is
the right-of-way.
Mr. Qureshi stated the critical question is if they wish to go beyond the pro-
posed plan and acquire additional right-of-way to the east in the northeast
quadrant. He stated this, of course, would then involve the homes along
Mississippi. He stated these residences are set back about 50 feet which exceeds
the City's normal setback requirement; however, if ten feet was acquired, it
would have some impact on the homes.
Mr. Rasmussen stated, as proposed, the plan doesn't look too attractive for
development in this northeast quadrant.
Mr. Qureshi stated this is the third time this intersection has been improved
and it probably should be done in order to provide enough right-of-way for the
turning lanes and landscaping so it wouldn't need to be redone again.
W. Ruud stating they are receiving estimates of over $150,000 to acquire the
right-of-way needed from the Dairy Queen and Rice Creek Plaza. He stated the
last time the intersection was approved, the cost for acquiring right-of-way
was shared jointly by the City and County. He stated they started with an
estimated cost of $200,000 and now the County's share is about S400,000 and
right-of-way costs are skyrocketing. Be felt maybe this should be researched
a little further to see if the County and City can work together on something
to fit in with the overall plans.
HOUSING & REDEVELOPMENT AUTHORITY, MAY 8, 1986 PAGE 6
Mr. Canners asked how many feet was acquired in the southwest quadrant. M .
Ruud stated it starts at 40 feet and tapers down to 10 feet as you go further
west. He stated it affects the parking at Rice Creek Plaza by eliminating a
row.
Councilman Barnette stated if you take 40 feet from the Dairy Queen property,
it almost wipes them out and they, in fact, lose their business. Mr. Ruud
stated that is why the cost is so high.
Mr. Ruud felt the County would rather do it right this time if the terms and
costs could be worked out. Mr. Ruud stated on the west side of University,
there are connections to streets coming out of the redevelopment area.
Ms. Schnabel stated she is concerned about the access capabilities to various
businesses because of the islands.
Mr. Ruud stated the medians are installed to provide a protected left-turn
bay. He stated it is a cannon design and businesses are finding they can
live with it quite nicely.
Mr. Qureshi stated the HRA members should be aware that access is blocked
going east out of Holly Shopping Center because of the island.
Mr. Qureshi stated the Highway Department should expose these plans to the
property owners and tenants so they are fully aware of what is happening.
Mr. Qureshi stated if the HRA felt they wished to pursue efforts to acquire
additional right-of-way, some cost analyses could be done.
Mayor Nee stated he could see this would satisfy the County's need for moving
traffic, but didn't feel it benefits the City.
Mr. Ruud stated the County has given consideration to the City and sidewalks
will be installed on both sides and signals are bing revised with pedestrian
buttons. He stated they also addressed the impact on the senior citizen housing
and tried to put those features into the project.
Mayor Nee stated it makes it difficult to develop the property in the northeast
quadrant when you don't have access going east. He stated he felt the County
wished to protect their turning movement going north.
Mr. Ruud stated the question is how to handle the traffic problem and provide
reasonable access to adjoining properties. He stated any time you provide
channelization, you lose sane access. He felt everyone would like direct
access, but you can't have a busy street and provide direct access.
It was the concensus of the HRA members that the possibility of acquiring
additional right-of-way and the costs involved should be pursued.
Mr. Ruud stated he would like to have a meeting at the City Hall and invite
the affected property owners and tenants to discuss the proposed plan.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, MAY 8, 1986 PAGE 7
Mr. Ruud stated normally next year wouldn't be a problem for this improvement
project to begin, but because of closing of East River Road due to culvert
construction for Rice Creek and Osborne Road planned for next year, however, it
probably would take more time if additional right-of-way needs to be acquired.
3. MOCHINSKI'S PROPOSED 19 UNIT TOWNHOUSE PROJECT ON OLD CENTRAL:
Mr. Qureshi stated Mr. Mochinski is proposing to construct a 19 unit townhouse
on Lots 17 and 18, Block 2, Spring Valley Addition. He stated this property
has some soil and drainage problems and Mr. Mochinski is requesting some
assistance from the HRA for piping the ditch and to contribute the adjoining
lot to the project at no cost.
Mr. Qureshi stated W. Mochinski's cost for soil correction will be about
$75,000 to $100,000 and his request for assistance totals about $25,000.
Mr. Nbchinski explained his project will cost about $1,500,000 and the town-
houses would sell in the $75,000 to $80,000 price range and vary from 1,100
to 1,500 square feet.
W. Qureshi stated the HRA has provided assistance in the past to developers
where there are soil and drainage problems on the property.
Mr. Mochinski stated he was originally going to develop this property commer-
cially, but traffic counts on Old Central indicate it isn't a viable retail
center location. He stated realtors suggested to him that townhouss be con-
structed and this would be the best use of the land.
W. Mochinski stated if he receives HRA approval, he would begin the process
to rezone the property from C-1 to R-3.
Mr. Canmers asked what tax increment is captured, if the project proceeds.
W. Qureshi stated sanewhere in the neighborhood of about $50,000./year.
MOTION BY M5. SCHNABEL, SECONDED BY MR. PRAIRIE, THAT THE HRA PROVIDE ASSIST-
ANCE UP TO $25,000 TO MR. MOCHINSKI FOR DEVELOPMENT OF HIS PROJECT BY (1) CONTRIBUTING
THE ADJOINING LOT AT NO COST; AND (2) PAYING FOR THE COST OF PIPING THE OPEN DRAINAGE
DITCH ON THE SOUTH SIDE OF THIS' SITE, SUBJECT TO OBTAINING CITY COUNCIL APPROVAL
OF THE PROJECT.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN COBS DECLARED THE MOTION CARRIED
UNANIMOUSLY.
4. UPDATE ON LAKE POINTE CORPORATE CENTER DEVELOPMENT:
Mr. Qureshi stated the contract for redevelopment with Woodbridge Properties
provides they submit a letter by May 1 confirming their commitment to this
project.
Mr. Qureshi stated they are requesting a 45 day extension to June 15, as they
are experiencing delays. He stated Woodbridge applied
to the Pollution Control Agency for an indirect source permit and they have
not received approval of this permit.
HOUSING & REDEVELOPMENT AUTHORITY, MAY 8, 1986 PAGE 8
Mr. David Weir, President of the Woodbridge Financial Corporation, stated the
PCA has given a verbal acceptance of the indirect source permit application,
but asked to meet separately with the City and NnDQT on proposed conditions
of the indirect source permit. He stated one condition was the upgrading of
the intersection at Th 65 and West Nbore Lake Drive.
Mr. Weir stated one of the issues is the source of funding for the entire
interchange. He stated, therefore, they wouldn't be in a position to execute
an agreement where legally the City couldn't permit then to take occupancy of
a building.
Mr. Weir stated City staff has worked incredibly hard to get a design finalized
with MnDOT. He stated they are proceeding with their plans and doing every-
thing they can to remove these obstacles, but it is a frustrating position.
Mt. Commers asked if the interchange is where they are encountering problems.
Mr. Qureshi stated, initially, before the Woodbridge development came into the
picture, a study was authorized for improvement of the intersection. He
stated it came to light, with application for the indirect source permit, that
Th 65 needs to be upgraded. He stated if the indirect source permit requires
improvements to be in place, before additional buildings could be constructed
beyond the first phase, it tends to put a restraining affect on the development.
Mr. Qureshi stated even if fundingwere given for this upgrading, the time
requirement for getting this frau MnDCYT may impact on the development.
Mr. Rasmussen asked the estimate for the improvement. Mr. Qureshi stated
it is estimated the improvement of TH 65 would be over $1 ,000,000 and the West
More Lake Drive/01d Central intersection improvement would be about $600,000.
Mr. Comers stated in order for the development to proceed, someone may have
to cane up with about $1,500,000. Mr. Qureshi stated this may be the require-
ment of the Pollution Control Agency.
Ms. Linda Fisher, Legal Counsel for Woodbridge Properties, stated they meet
air quality standards for the first building to be constructed with the
existing intersection, however, any additional development will probably require
improvement of_the_.intersection.
Ms. Fisher stated once the PCA draws up the permit, there is a 30 day comment
period. She stated after this period, assuming no challenge, they can proceed
with their first building.
Mr. Weir stated even though they can start building, they cannot sign the
agreement as it wouldn't generate enough increment.
HOUSING & REDEVELOPMENT AUTHORITY, MAY 8, 1986 PAGE 9
Mr. Qureshi stated the major issue is when and how Highway 65 is improved in
order to accommodate the requirements of the Pollution Control Agency. He
stated he hoped to meet with the PCA tomorrow.
Mr. Qureshi stated, even though the necessary approvals have not yet been
possible to secure, the plans are being submitted for the HRA's review. He
suggested, however, Wbodbridge's request for an extension be considered until
the next scheduled meeting of the HRA on June 12, 1986.
MOTION BY MR. RASMUSSEN, SECONDED BY MS. SCHNABEL TO EXTEND THE AGREEMENT WITH
WOODBRIDGE AND PAYMENT FOR THE FIRST PHASE OF DEVELOPMENT FROM MAY 1, 1986 TO
JUNE 12, 1986.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN COMERS DECLARED THE MOTION CARRIED
UNANIMOUSLY.
Councilman Schneider asked if funds were available, if this solves the problem
or if there is still a problem with the indirect source permit.
Mr. Qureshi stated if the permit requires that, beyond the first building, they
need these improvements and funds are available, it would make it easier to go
to the Highway Department.
Mr. Canners asked if there was the possibility the Highway Department would
participate in the cost for the improvement. Mr. Flora stated the funds that
could be made available for this project probably would be minimal and in the
area of $300,000 to $600,000.
Mr. Weir stated one of the things they hope to accomplish with their project is
to create a whole new focal point for the north suburban area.
Mr. Weir introduced their architect, Mr. Ernst, who presented the landscaping
plan.
Mr. Ernst stated they are proposing the use of shade trees, flowering shrubs,
and conifers for all year-aroma greenery. He stated the plan creates a strong
boulevard concept with trees spaced 40 to 50 feet on center throughout the main
drive. He stated there is a 40 foot buffer between the residential areas with
heavy plantings of conifers, small flowering trees, shade trees, and shrubs.
Mr. Ernst stated large shade trees would be planted in expansive undeveloped
areas. He stated a majority of these trees would have to be reloacted as
development occurs in those areas.
Mr. Ernst stated the entire site would be irrigated and would include seeding
and sodding.
Mr. Qureshi stated there would be extensive landscaping and the roadway and
landscaping are to be part of the contracts.
HOUSING & REDEVELOPMENT AUTHORITY, MAY 8, 1986 PAGE 10
MOTION BY MR. PRIEDITIS, SECONDED BY MR. RASMUSSEN, TO APPROVE THE DESIGN
CONCEPT OF THE LANDSCAPING PLAN, SUBJECT TO FINAL APPROVAL BY CITY STAFF.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN CARS DECLARED THE MOTION
CARRIED UNANIMOUSLY.
Mr. Corers asked, with the granting of the extension, if it was necessary to
adopt the resolution approving the construction plans for phase one. He pointed
out that Itan 6 in the resolution states no default has occurred. He felt,
technically, a default has occurred when they extended this contract to June 12.
Mr. Newnan felt Itan 6 in reference to the default should be eliminated from
the resolution.
Mr. Canners asked if the plans have been checked to see that they conform to
all applicable Federal, State and Local laws, ordinances, rules and regulations.
Mr. Qureshi stated they comply with the building codes and other standards.
NOTION BY MR. PRAIRIE, SECONDED BY MS. SCHNABEL, TO ADOPT RESOLUTION NO. 6-1986,
WITH THE DELETION TO ITEM NO. 6 IN REFERENCE TO A DEFAULT.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN CONKERS DECLARED THE MOTION CARRIED
UNANIMOUSLY.
Mr. Weir stated, in spite of all the frustrations, the staff, in his opinion,
has done an incredible job. He stated it really reaffirms to them their
decision to be in Fridley.
5. STATUS REPORT ON LOU LUNDGREN PROJECT:
Mr. Qureshi staed a development agreement was entered into with Mr. Lundgren
which provided certain contractual obligations mast be met by May 1, 1986 or
the agreement became null and void.
Mr. Qureshi stated a number of letters were sent to Mr. Lundgren to express
concern on the timely presentation of certain items provided in the agreement.
He stated Mr. Lundgren has not been able to provide some of these items such as
a financing plan, construction plan, and lease agreement.
Mr. Qureshi stated Mr. Lundgren submitted a set of drawings today and indicated
he has made application to the Rice Creek Watershed District and is attempting
to get sane commitment on the financing. He stated Mr. Lundgren, through his
attorney, has requested an extension of the agreement.
Mr. Qureshi stated Mr. O'Meara frau O'Connor & Hannan and Mr. Newnan are pre-
sent to give any implications regarding this extension request.
Mr. O'Meara stated there were a number of different proposals, but this project
ended up with a six story building. Be stated, at the end of the year, he didn't
believe Mr. Lundgren was in a position to sign what he considered to be a com-
plete development agreement because he wasn't prepared to commit to a minimum
market value.
• HOUSING & REDEVELOPMENT AUTHORITY, NAY 8, 1986 PAGE 11
He stated an agreement was executed, but left the basic terms blank, not only
this minimum market value, but also terms of the lease. Be stated the under-
standing they had always conveyed to W. Lundgren was the HRA was willing to
contribute up front, but would be looking for some payment down the road. He
stated this came to the lease agreement where Mr. Lundgren would be making
sane payments and purchase the underground parking ramp at fair market value.
Mr. O'Meara stated the lease was never negotiated because Mr. Lundgren wasn't in
a position to fill in the blanks at that time. He stated a provision was in-
serted into the agreement that, if by May 1, 1986, a number of things didn't
occur, and that included these unresolved issues, this agreement with W. Lundgren
automatically would terminate and the property would be free of any obligations
to hold it for this particular project.
Mr. O'Meara stated the lease was redrafted in early March and wasn't acceptable
to Fuller Nbrgage. He stated Fuller Nbrtgage insisted the developer be given
the land and parking rail') or convey the fee title to Mr. Lundgren. He stated
that concept was discussed frau the beginning, but rejected because it tends to
violate consumer loans which says you cannot loan more than five percent of a
bond issue to a private person or else it would be taxable. He stated they
didn't want the City's bond issue to be taxable. Mr. O'Meara stated the agree-
ment has now expired as of May 1, 1986.
Mr. Ccxrmers asked what action would be necessary if they wanted to extend the
agreement. W. O'Meara stated a simple way to deal with the matter, if they
choose to extend the time, is to amend the May 1, 1986 date.
W. Comers asked if W. lundgren's proposal was not legally feasible because
of the tax consequences. Mr. O'Meara stated not if it has to be financed by
the proceeds of tax increment bonds.
W. Lundgren stated he has a complete set of specifications and working documents.
He stated he has a legal problem and has been trying to get together with Mr.
O'Meara, but they have a conflict in times.
Mr. Lindgren stated they have been to the Rice Creek Watershed District three
times and hired a consultant and completed all their requirements. He stated
they expect approval of their plan at the District's next meeting.
W. Lindgren stated he doesn't have a problem with signing that agreement. It
is not a question of the terms or money, it is a question of what HUD will allow
in terms of their mortgage. He stated he finally got a copy of the regulations.
Mr. Lindgren stated he would like his attorney, the HRA's attorney and HUD
attorneys to discuss an agreement and extend the date of his contract to June 12.
W. Lindgren stated he needed title or sanething equivalent to title. He stated
if the parking ramp financing is the problem, he can do without it, but needs to close
this mortgage. He stated he has a good fiscal plan which he feels will work.
He felt something should be able to be worked out to suit the HRA's needs and
comply with HUD regulations.
HOUSING & REDEVELOPMENT AUTHORITY, MAY 8, 1986 z J, PAGE 12
Mr. Lundgren stated Fuller Mortgage will have a meeting the week of May 19 and
he expects a commitment frau than at this time.
Mr. Qureshi stated, if it is the desire to grant Mr. Lundgren an extension to
June 12, staff would work with him on what needs to be done. He stated the
extension could be granted and, if certain iters are not completed, this agree-
ment would be null and void and there wouldn't be any other extension.
Mr. O'Meara stated a development agreement would have to be worked out by
June 12. He stated, under the present agreement, the HRA is obligated to
acquire and deliver the land on or before September 1. He stated, with this
delay, the HRA probably wouldn't be able to meet that deadline.
Mr. Lundgren stated the HRA would not be obligated to any of the dates in the
agreement and these would be worked out.
MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, THAT THE HRA, ACTING IN GOOD
FAITH, WILL NOT SIGN A DEVELOPMENT AGREEMENT WITH ANOTHER DEVELOPER FOR THE
PROPERTY MR. LUNDGREN IS PROPOSING TO DEVELOP UNTIL THE BRA MEETING ON JUNE 12,
1986, AND HOPES MR. LUNDGREN WILL BE ABLE TO COME BACK AT THAT TIME WITH A
COMPLETED DEVELOPMENT AGREEMENT.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN COMERS DECLARED THE NOTION CARRIED
UNANIMOUSLY.
At this time, 10:20 p.m. , Virginia Schnabel was excused frau the meeting.
6. OUTLINE OF PROJECT IMPROVEMENTS FOR THE NEXT 2-1/2 YEARS:
Mr. Qureshi stated the HRA sold $11 ,500,000 in bonds for improvements underway and
future improvements. lie stated $3,400,000 is available for other projects and felt
some priorities should be set.
Mr. Qureshi submitted a list of different projects with very rough cost estimates
and indicated that he prepared the outline just to get the HRA to prioritize the
projects to be done in the next 2 - 2 1/2 years.
Possible Project - Rough Estimates
Soil sorrection $ 250,000
81st/83rd & frontage 500,000
West Moore Lk Dr & Old Central 600,000
Mississippi. Street 500,000
Trunk Highway 65 1,000,000
Moore Lake water quality 500,000
Rice Creek Drive #TH 65 400,000
University Avenue Corridor 750,000
West Moore Lk park improvement 150,000
Senior Housing 150,000
Junkyard Acquisition 750,000
Miscellaneous Acquisitions 150,000
Shopping Center Vacancies 100,000
Civic Center ramps 750,000
HOUSING & REDEVELOPMENT AUTHORITY, MAY 8, 1986 PAGE 13
Mr. Qureshi stated the HRA sold $11,500,000 in bonds for improvements underway
and future improvements. He stated $3,400,000 is available for other projects
and felt some priorities should be set.
There was discussion on the list submitted and some of the projects which the
HRA felt should be given first priority were as follows: soil correction,
West Mbore Lake Drive & Old Central intersection, Mississippi Street improve-
ment, Trunk Highway 65 improvement, University Avenue Corridor and Senior
Housing. Another priority mentioned was drainage from Lake Pointe and the Moore Lake
water quality.
Mr. Cammers felt the high priority is the Center City and the HRA has
a commitment to Lake Pointe so they are going to have to do what needs to be
done for this project to proceed.
Mr. Qureshi stated the owners of Rice Creek Plaza have requested a meeting
as they feel some action should be taken to either acquire this property or
else take it out of the redevelopment area. He stated a row of parking will
be lost for this center as a result of the Mississippi Street improvement and
the question arises if the HRA should proceed further to negotiate and acquire
the property.
Mr. Qureshi stated he felt the owners of Rice Creek Plaza may be interested in
selling and asked direction from the HRA if they wanted +-o see that only the
necessary right-of-way is acquired or the entire center. He stated the position of HRA
and Council has been that they don't want to be property owners.
Mr. Newnan stated he felt the owners wished the HRA to acquire their property
and stated they would get back to the City with sane figures. He stated staff
felt they couldn't incur any expense of appraising the property without approval
of the HRA.
It was the general concensus of the HRA that they would review any proposals
from the owners of the Rice Creek Plaza, but it isn't their policy to acquire
land.
7. OTHER:
Mr. Qureshi stated a letter has been received from Brian and Rosemarie Crampton
for the HRA to release its second mortgage against the subject property.
NOTION BY MR. PRIEDITIES, SECONDED BY MR. PRAIRIE, TO DENY THE REQUEST OF
BRIAN AND ROSEMARIE CRAMPT'ON TO RELEASE THE SECOND VORTOAGE THE HRA PRESENTLY
HOLDS.
UPON A VOICE VOTE, ALL VOTING AYE , CHAIRMAN COWERS DECLARED THE MOTION CARRIED
UNANIMOUSLY.
8. CLAIMS:
MOTION BY MR. PRIE.DITIS, SECONDED BY MR. PRAIRIE, TO APPROVE THE- CHECK REGISTER
DATED MAY 8, 1986.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN COIMERS DECLARED THE NOTION CARRIED
UNANIMOUSLY.
1
HOUSING & REDEVELOPMENT AUTHORITY, MAY 8, 1986 PAGE 14
ADJOURNMENT:
MOTION BY NR. RAS1USSEN, SECONDED BY MR. PRAIRIE, TO ADJOURN THE MELTING.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRMAN CARS DECLARED THE MAY 8,
1986 HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 11:15 P.M.
Respectfully submitted,
(et >dLee-i4e-te--
Carole Haddad,
Recording Secretary
1
TO: Housing & Redevelopment Authority
FROM: Jock Robertson, Executive Director
DATE: June 6, 1986
REARDIN3: Newly Created Development Agreement with Fridley Plaza Associates
and Louis R. Lundgren
•
The proposed Development Agreement as originally drafted and approved
November 14, 1985 has been rendered null and void. A new Development
Agreement with Louis Lundgren has been formulated using the same concepts as
the previous agreement but with some modifications necessitated by
requirements from Pullar Mortgage, the primary investment group for the
development. The revisions as detailed below basically stipulate that the
City will invest up to $500,000 for planned acquisition costs to transmit the
title in fee simple to the developers. The aogisition cost will be repaid by
the developers through a second mortgage over a 15 year period at 8%
interest.
The 14 month work schedule remains the same with generally a 90 day shift
forward in start up so that construction begins November 1, 1986 and is
completed February 1, 1988.
The following notes summarize the changes, article by article:
ARTICLE I - DEFINITIONS;
"Closing Date" refers to mortgage
"Second Mortgage with Title Insurance" added
"Lease" deleted
"Parking Facilities" deleted
ARTICLE II - REPRESENTATIONS, WARRANTIES AND COVENANTS;
Section 2.2(c) - Cost of construction of the minimum housing inprovements
will not be less than $8,500,000.
Section 2.3 - Right of first refusal for subsequent phases shall expire March
1, 1987, and the HRA shall take reasonable steps including eminant domain to
ensure site control.
ARTICLE III - LAND TRANSACTIONS;
Section 3.2 - Second mortgage terms. No interest will be paid or earned the
first three years. Interest only will be paid in years four and five.
Principal interest in years six through fifteen resulting in the loan being
paid off in full interest and principal by the fifteenth year.
Section 3.3 - Developer shall obtain title insurance policies for development
property naming HRA as additional insured on the second mortgage.
ARTICLE IV - CONSTRUCTION OF MINIMUM IMPROVEMENTS;
Section 4.3 - Commencement of construction on or before November 1, 1986.
Substantial completion of construction are prior to February 1, 1988.
1P,
1pHousing & Redevelopment Authority
June 6, 1986
Page 2
Section 4.5 - Developer required to furnish new letter of credit to the HRA
on or before July 1, 1986 for the amount of $200,000 covering the time period
until certificate of completion on or before February 1, 1988.
ARTICLE V - INSURANCE AND WN EMJATION;
Section 5.3 - HRA may agree to modifications at sole discretion that such
modification does not impair its security as second mortgage holder.
ARTICLE VI - ASSESSMENT AGREEMENT;
Section 6.1 - Assessment agreement to be approved on or before June 12, 1986
to be executed at time of transfer of title.
ARTICLE VII - MOR'1GAGE FINANCING;
Section 7.1(b) - Second mortgage not to exceed the amount of $6,750,000.
Section 7.6(b) - HRA to consider modifications to accomodate first mortgage
holder if HRA deers such modifications reasonable and necessary and do not
impair its second mortgage.
ARTICLE VIII - PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER;
No change
ARTICLE IX - EVENTS OF DEFAULT;
Terminology changes frau "lease" to conveyance and second mortgage.
ARTICLE X - ADDITIONAL PROJISIONS;
10.9 - Extraordinatory Termination shifts to August 1, 1986.
EXHIBIT A - DEVELOPMENT PROPERTY
Legal Description - no change
EXHIBIT C - FORM OF CERTIFICATE OF ODMPLETION
No change
EXHIBIT D - ASSESSMENT AGREEMENT
Minimum market values is changed to as follows: January 2, 1987 -
$1,275,000. January 2, 1988 - $6,800,000. January 2, 1989 - $8,500,000.
Each January 2 of each year following - $8,500,000.
(To be yet finalized.)
1B
Housing & Redevelopment Authority
June 6, 1986
Page 3
ATTACHMENT A TO ASSESSMENT AGREEMENT (Development property)
No change.
ATTACHMENT B TO ASSESSMENT AGREEMENT
Referring to Minnesota Statutes, Section 273.76, Subdivision 8:
EXHIBIT E (Description of Location of Parking Facilities)
Delete.
EXHIBIT F (Permitted Encumbrances to Development Property)
4. Change reference fram lease and first mortgage to second mortgage.
JLR/dm
M-86-122
1C
RESCLUTION N0. ERA 1-1986
A RESCLUTION APPROVING AND AUTHORIZING THE EXECUTION OF A
U:NTRA(7 FOR PRIVATE IEVELOPMENT WITH TriE FRIDLEY PLAZA
pSSOCIATFS LIKETED PARTNERSHIP
IT IS HEREBY RESOLVED by the Board of Commissioners (the 'Board') of the
Housing and Redevelopment Authority in and for the City of Fridley, Minnesota
(the "Authority") , as follows: ,
1.. Recitals.
A. The Authority has all the powers of a housing and redevelopment
authority under the Municipal Housing and Redevelopment Act, Minnesota
Statutes, Sections 462.411 to 461.716 , inclusive, as amended (the
"Act") .
B. In furtherance of the objectives of the Act, the Authority has
undertaken a program to acquire, or otherwise promote development of ,
open or undeveloped land and open or undeveloped land and in this
connection is engaged in carrying out the redevelopment project known
as the Authority's Redevelopment Project No. 1 (the "Redevelopment
Project") in an area (the "Project Area") located in the City.
C. There has been prepared and approved by the Authority and the City
Council of the City, pursuant to the Act, a Modified Redevelopment
Plan for the Redev el opnent Project (the "Redev el opnent Plan") .
D. The acquisition and subsequent sale or lease of the potential
development property to private developers for rental housing
development are stated objectives of the Redevelopment Plan.
E. In order to achieve the objectives of the Redevelopment Plan and
particularly to make the land in the Project Area available for
development by private enterprise in conformance with the
Redevelopment Plan, the Authority has determined to provide
substantial aid and assistance in connection with the Redevelopment
Plan through the financing of certain of the public costs of
dev el opnent in the Project Area.
F. The Fridley Plaza Assoicates Limited Partnership, a Minnesota limited
partnership, has presented the Authority with a proposal for the
construction within the Project Area of an Apartment Building and a
pertain Contract for Private Development between the Authority and the
Fridley Plaza Associates Limited Partnership (the 'Development
Contract") , stating theterms and conditions of such development and
- the Authority's responsibilities respecting the assistance thereof, 0
- has been presented to the Board for its consideration. 0,i
G. On November 14, 91 85, the Authority held a public hearing on an
earlier proposed contract for Private Development which provided for
or
the purchase and/-rpoestftverettee by the Authority of the property on
which the Fridley Plaza Associates Limited Partnership project is
6,.q,i-
proposed to be constructed. Although that Contract for Private
Development has peen terminated, this proposed Ce
3evelopnent is consistent with one presented at that November 14, 1986
(public hearing.
1D
lege 2—Resolution No. -1986
2. Tne Board hereby approve the Contract for Private Development and hereby
authorize the thainnan and Director to execute the same on behalf of the
Authority, with such additions and modifications as those officers may
deer re cessa ry.
3. Upon execution and delivery of the Contract for Private Development, the
officers and employees of the Authority are hereby authorized and directed
' to take or cause to be taken such actions as may be ne cessa ry on behalf of
the Authority to implement such Agreement.
MASSED AND ADOPT® BY THE ICUS= AND REDEVELOPMENT AUTHORITY OF THE CITY OF
FR ILL EY THIS DAY OF INEMA t, 1986
LARRY CDl ERS, CHAIRMAN
HWSIING AND RIDE.VII.OR2 T AUTHORITY
ATTEST:
PAS 1m N. (�JRESH I, DIRECTOR
HCUSL*D AND RED VELOR'.E:IT AUTHORITY
I � 2
4484
•
nntt /AG/
HERRICK & NEWMAN. P.A.
ATTORNEYS AT LAW
VIRGIL C.HERRICK 5279 UNIVERSITY AVENUE N E
DAVID P.NEWMAN FRIDLEY,MINNESOTA 55432
JAMES E.SCNMECKPEPER 571-3850
May 28, 1986
Nasim Qureshi
City of Fridley
6431 University Avenue, N.E.
Fridley, MN 55432
RE: Rice Plaza Shopping Center
Dear Nasim:
Enclosed you will find a copy of a letter which I recently
received from Bob Levy, the attorney representing the owners
of the Rice Plaza Shopping Center. I believe this letter is
self explanatory. You will note that in this letter Mr .
Levy is asking to appear on the agenda at the next HRA
meeting.
11 incerely yours,
aura P. Newman
DPN:KLS
Enclosure
2A
HERRICK & NEWMAN, P.A.
ATTORNEYS AT LAW
VIRGIL C.MERRICK 6279 UNIVERSITY AVENUE N.E.
DAVID►.NEWMAN FRIDLEY.MINNESOTA 55432
JAMES E.SCMMECK►E►ER 571-3850
May 28 , 1986
•
Bob Levy
ESTES PARSINEN & LEVY
100 South Fifth Street
Suite 1100
Minneapolis, MN 55402
RE: Rice Plaza Shopping Center
Dear Bob:
I have forwarded your letter of May 19, 1986 onto Mr.
Qureshi, the Director of the Fridley HRA. I have also
informed him of your request to appear at the next meeting
of the Fridley HRA. This meeting is scheduled for June 12,
1986, at 7:00 p.m. at the Fridley City Hall. If you would
like, please feel free to call me that day, and I will try
to give you my best guess as to when the HRA may get to you
on the agenda.
It is also my understanding from our earlier conversation
that you are going to forward on to the HRA staff, copies of
all existing leases. If you have not already done this, I
would ask you to do so at your earliest convenience.
Sincerely yours,
David P. Newman
DPN:KLS
cc: Nasim Qureshi
fir 2B
LAW OFFICES
ESTES PARS 1 N EN at LEVY
A PROFESSIONAL ASSOCIATION
100 SOUTH FIFTH STREET
JOHN D.PARSINEN SUITE 1100 S.TODD PAPP
P.D.ESTES HOWAPD J.PUBIN
ROBERT A.LEVY MINNEAPOLIS, MINNESOTA 55402 DAVID R.MYLREA
ERIC S.SCHULTZ JErr ROSS
JACK A.ROSSERO TELEPHONE DAVID A.ORENSTEIN
LEON I.STEINSERO 16121 333-2111
DANIEL J.SIERSOORI FACSIMILE BRUCE B.JAMES
E.SNAKE HINDS 16121 333-6796 OF eovl.Sc.
May 19, 1986
David P. Newman, Esq.
Herrick & Newman, P.A.
6279 University Avenue N.E.
Fridley, Minnesota 55432
RE: Housing and Redevelopment Authority
City of Fridley -- Rice Plaza
Dear Dave:
This letter is in response to your request that I summarize for you in writing the
problems created for Rice Plaza and its ownership, Rice Plaza, a Minnesota partnership
("Rice Plaza"), by reason of the Fridley Housing and Redevelopment Authority's ("HRA")
continuing saga of entering into various levels of development agreements, letters of
intent, understandings or development plans with various developers for the Rice Plaza
site and conducting various public hearings in connection therewith. Most simply stated,
the action of the HRA over the past five or six years has created a cloud of
condemnation over Rice Plaza which has unnerved and disrupted our existing tenants as
well as made it next to impossible for us to lease vacancies as they may occur.
In connection with its tax increment district and development plans, the HRA has
conducted numerous public hearings relative to its plans, the specific plans of developers,
entered into development contracts with potential developers and most recently, in
connection therewith, the City of Fridley has conducted public hearings relative to the
possible rezoning and replatting of the Rice Plaza property for development as a multi-
family housing project. Each time the HRA or the City publishes or sends out public
notices with respect to those development plans or conducts public hearings in
connection therewith, it creates a public impression that a condemnation or taking of
Rice Plaza is just around the corner. We understand and acknowledge that the HRA is
exercising a proper public function in connection with seeking to maximize utilization of
the subject property and further certain public purposes or goals with respect to
development in the City. However, this process has been going on for a period of five or
six years with one developer after another selected by the HRA. Each time Rice Plaza
has succeeded in soothing the concerns of its existing tenants after a development plan
has fallen through. However, it seems that the HRA then solicits a new developer and a
new plan and enters into new discussions or agreements which again stirs up the dust.
Please understand that we are not questioning the motives or public purposes of the
HRA, but those purposes are not necessarily the objectives or purposes of the existing
ownership of Rice Plaza which has to suffer the consequences.
2C
ESTES PARS I N EN & LEVY
May 19, 1986
Page 2
In attempting to lease out vacant space, Rice Plaza is concerned that it never be
accused of misrepresentation by a new tenant for failing to disclose the potential
development plans of the HRA with respect to the property. Accordingly, in each
instance Rice Plaza has directed prospective tenants to the City and HRA staff for the
purpose of obtaining information on a direct basis as to the status of those development
plans. We have been advised on numerous occasions by both prospective tenants as well
as existing tenants that they have been informed by individuals at City Hall that
development is "just around the corner" and the condemnation or taking will be in the
very near future. Obviously, that has scared away potential tenants as well as being
disconcerting to existing tenants. It was a circumstance such as this that precipitated
the HRA's recognition of this problem and purchase from Rice Plaza of what is now the
Municipal Liquor Store site, after a prospective tenant lost interest in the property due
to the then pending threat of condemnation.
A parallel circumstance now exists. Rice Plaza currently has a vacancy which it
has been unable to lease due to the pending threat of a taking by reason of the
development plans with Mr. Lundgren. Specifically, one of the existing tenants expressed
interest in expanding their store into the adjoining vacancy, but after consultation with
staff at City Hall decided against making the necessary capital investment to do so due
to the potential taking.
Rice Plaza has always been a good "business citizen" of the community and has
attempted to accommodate the HRA's needs in connection with its development plans.
Most recently, Rice Plaza was approached through you on behalf of the HRA and the
City for purposes of consenting to a replatting of the subject property and rezoning
thereof in connection with the development plans of Mr. Lundgren. When you contacted
me, the first concern I communicated to you was that we did not want to be left at the
alter one more time having our tenants disrupted and running into difficulties in terms of
keeping our space leased, if the development plans were not going to go through. The
consent requested was provided on a conditional basis pursuant to a proposed agreement
which you and I negotiated and which was executed on behalf of Ride Plaza. It is my
understanding that the subject agreement has never been submitted to the HRA or the
City for formal approval and authorization for execution. Rize Plaza consented to the
contingent replatting and rezoning of its property predicated on our understanding that
that agreement had been negotiated and would be submitted for formal action by the
HRA and the City. Rice Plaza feels that it acted in good faith in allowing those public
hearings regarding contingent rezoning and replatting of its property to take place. If it
had reason to know that the HRA staff would take its executed agreement and simply sit
on it and never submit it to either the HRA or the City for formal approval, we would
have had a basis to challenge those hearings and avoid the resultant disruption to our
tenants.
I want to reiterate that Rice Plaza is not challenging the public purpose or motives
of the HRA or the City in connection with their development plans. However, Rice
Plaza is suffering the consequences of actions supporting motives which are unique to the
HRA. Rice Plaza has been placed in an untenantable position. We respectfully request
that the HRA either remove Rice Plaza from the tax increment district and drop its
development plans for same or engage an appraiser at this time to appraise the property
and commence the process of acquiring the property. If the HRA wants the property
1
2D
ESTES PARSINEN & LEVY
May 19, 1986
Page 3
held in abeyance pending development, then it should bear the financial burdens
attendant thereto.
• I would like to appear at the next HRA meeting for the purpose of addressing our
requests set forth herein.
Very truly ours,
Robert A. Levy
krh
RAL-5
cc: Fred Levy
James Ridgway
3
MEM) W: File
MEM) FROM: Jock Robertson, Community Development Director
MEND DATE: June 6, 1986
REGARDING: Summary of Meeting with Woodbridge and MPCA concerning the
Indirect Source Permit stipulations.
Attendees: Susanne Pelly - MPCA; Dan Luteneger - Barton Aschman; Linda
Fischer - Larkin-Hoffman; Erik Nesset and David Weir - Woodbridge; Jim
Benshoof - Traffic Consultant; Kevin Green - MnDot; Nasim Qureshi, Jock
Robertson, John Flora - City of Fridley.
Agenda Item #1: The attendees discussed Susanne Pelly's assertion that the
required DNR Permit for minimum filling for improvements on Trunk Highway
#65 be linked to the Indirect Source Permit. Minnesota DNR will
communicate with Ms. Pelly that the DNR filling permit is no problem.
Agenda Iter #2: On the question of the traffic assignment models, Pelly
questioned the a) 15% reduction for multi-use trips and b) the 10%
reduction for intercepted trips. She thought the assumptions were
suspicious because of the lack of national literature of the subject. Jim
Benshoof responded that on June 4, 1986 he and Dan Luteneger, Barton
Aschman, worked through the traffic and air quality models manually by
inspection using "worst case" assumptions of 10% reduced trips and 0%
intercepted trips. The net increase was a total of 110 trips, or 2% of the
actual number of trips. Therefore, the changes have a very limited
magnitude and there will be no level of service changes. Luteneger said
that the worst case effect of the additional 50 vehicles in eight hours on
the West Moore Lake Drive portion of the interchange which would an
additional 0.5 parts per million of carbon monoxide raising the output of
the model frau 4.6 to 5.1.
Susanne Pelly then questioned whether MnDot had approved the geanetrics of
the design and directed MnDot to specify in a memo that the geometrics in
the Benshoof assumptions are to those used by Short-Elliot-Hendrickson.
Linda Fischer then proposed that the building by building land use
monitoring required in the draft permit does not appear to be necessary
because:
a) .the wide margin between the worst case projected output of 5.1 ppm of
Carbon Monoxide to the standard of 9.0 at full development.
b) MPA control through the "design change" mechanise in the Indirect Source
Permit, and
c) lack of neighborhood opposition.
3A
File
June 6, 1986
Page 2
Susanne Pelly then agreed that the monitoring was unneccessary and that
MPCA would need only be notified of:
a) significant design changes through the normal procedures of the Indirect
Source Permit,and
b) MPC% be notified by the City of Fridley on timing and minor changes as
the project is developed.
It was understood by the attendees that the latter was an informational
process not a prior approval process.
Agenda Item #3: Susanne Pelly questioned the timing of the intersection
improvements. Nasim Qureshi responded that the timing for the intersection
improvements did not appear to be so critical because of the new traffic
and carbon monoxide data. He said the City will move as expeditiously as
possible to make the proposed intersection improvements but that the MPCA
must recognize that MnDot is also involved. Ms. Pelly responded that the
permit will assume that all intersection improvements will be completed
before any subsequent development beyond the first phase, unless new trafic
and carbon monoxide model projections indicate that acceptable levels can
be obtained through substaging of additional buildings on the site or
improvements to the intersection. Ms. Pelly further stated that this new
model data could be submitted either during the 30 day review period of the
Indirect Source Permit or at any subsequent time after the Permit was
issued and a modified Permit will be issued.
Agenda Item #4: Linda Fischer asked if the Indirect Source Permit s timing
in enforcement could be linked to building occupancy. Susanne Pelly
replied that based on MPGA experience in violations, timing must be based
on issuance of building permits. Linda Fischer and Dave Weir responded
that this could make a major difference in the acceptability of the Permit.
However, when City Manager, Qureshi reminded them that new model data could
change the timing, both Pelly, Fischer and Weir agreed that the date of
occupancy problem could be solved.
The meeting concluded with the Mr. Qureshi asking if a copy of the Indirect
Source Permit could be available to the BRA on the 12th. Ms. Pelly
responded that if Jock Robertson phoned her on Wednesday morning the 11th,
she would make arrangements to get copies for distributions to the HRA on
the 12th.
JLR/sk
M-86-123
T
_ 4
itair DIRECTORATE
IZ7s7 !gl
PUBLIC WORKS
uTY
ppF� MEMORANDUM
f RI DLEY
70: Nasim Qureshi, City Manager FW86-156
FROM:•
•
John G. Flora, 'Public Works Director
DATE: June 8, 1986
SUBJECT: Awarding Contract for the Woodbridge Development
In anticipation of preparing the site for the proposed Woodbridge
Development on the 100-Twin Drive-in property, the City advertised and
received bids for three projects: Water and Sanitary Sewer Project #162
included the utilities for the Woodbridge Development; Demolition and Site
Grading Project #163 for the demolition of the existing facilities and
preparation of the site for the street and proposed structures; and Street
Improvement Project St. 1986-1 & 2 included Phase II which was the road
surface and walkway systems within the Woodbridge Development. All
contracts had a 60-day award period.
The 60-day award period for the contracts expires on June 15, 1986 .
Accordingly, if we are to move on this work utilizing the bids received,
the City Council should consider awarding the contracts at their June 12,
1986 special meeting.
The City has not received the Indirect Source Permit for the Woodbridge
site and therefore construction cannot commence until it is issued. It is
anticipated to be received by about July 15, 1986 because of the 30-day
publishing requirement associated with it. Accordingly, Projects #162 and
#163 could be awarded contingent upon the Indirect Source Permit with a
construction start no earlier than July 30, 1986, and all other dates
slipped a minimum of 60 days.
Action regarding Phase II of Street Improvement Project St. 1986-1 & 2 can
be delayed for a period of time as Phase I of the project has already been
awarded.
If it is appropriate, reoatmnend the City Council award Project #162 and
#163 both contingent upon the Indirect Source Permit with the start date of
July 30, 1986 and all other contract dates extended by a minimum of 60
days.
JGF/ts
lr 4A
BID OPENING 3:00 P.M. THURSDAY, APRIL 17, 19E6
DEMOLITION & GRADING PROJECT #163
BID 1 TOTAL I
PLANHOLDER I BOND I BID 1 COMMENTS
1I II I
Park Construction Company 1 1 1
7900. Beech Street, N. E. i 5% 1$ .972,514.001
Minneapolis, MN 55432 I 1 i
i I I
F. M. Frattalone Excavating i I 1
3066 Spruce Street I 5% 11,439,900.001
St. Paul, MN 55117 i 1
I '
I I
D. L. R. Construction Company I 1 1
11545 - 190th St. , E. 1 5% 11,525,000.661
Hastings, MN 55033 i I i
i 1 1
Ames Const. Co. , Inc. I 1 1
14420 Co. Rd. #5 i 5% 11,625,000. 001
Burnsville, MN 55337 i 1 1
1 -1
D. H. Blattner & Sons I I 1
1400 Concordia 1 5% 13,410,000.001
St. Paul, MN 55104 i 1
_ 1
CCIr DIRECTORATE P
• -Mi. OF 4`��Ie4'o
PUBLIC WORKS
LfITY
j MEMORANDUM
ACJ 86-144
MEMO TO: Nasim M. Qureshi, City Manager
MEMO FROM: John G. Flora, public Works Director
MEID DATE: May 23, 1986
SUBJECT: Awarding Contract For The Woodbridge Development
In anticipation of preparing the site for the proposed Woodbridge
Development on the 100 Win Drive-in property, the City advertised and
received bids for three projects: Water and Sanitary Sewer Project 4162
included the utilities for the Woodbridge Development; Demolition and
Site Grading Project 4163 for the demolition of the existing facilities
and preparation of the site for the street and proposed structures; and
Street Improvement Project St. 1986- 1 & 2 included Phase II which was
the road surface and walkway systems within the Woodbridge Development.
All contracts had a 60 day award period.
The 60 day award period for the contracts expires on June 15, 1986.
Accordingly, if we are to move on this work utilizing the bids received,
the City Council should consider awarding the contracts at their June 14
1986 meeting.
The City has not received the Indirect Source Permit for the Woodbridge
site ana therefore construction cannot commence until it is issued. It
is anticipated to be received by July 15, 1986 because of the 30 day
publishing requirement associated with it. Accordingly, Projects $162
and #163 could be awarded contingent upon the Indirect Source Permit
with a construction start no earlier than July 30, 1986, and all other
dates slipped a minimum of 60 gays.
Action regarding Phase II of Street Improvement Project St. 1986- 1 & 2
can be delayed for a period of time as Pnase I of the project has
already been awarded.
If it is appropriate, reoatumend the City Council award Project 4162 and
4163 both contingent upon the Indirect Source Permit with the start date
of July 30, 1986 and all other contact dates extended by 60 days.
JGF/ts
5
BID OPENING 3:00 P.H. THURSDAY, APRIL 17, 1985
WATER & SANITARY SEWER PROJECT #162
1 BID I TOTAL 1
PLANHOLDER 1 BOND I BID I COMMENTS
_1 1 1
Orefi & Sons, Inc. I I 1
P. O. 'Box 16358 I 5% 1 159,589.061
St. Paul, 11`.1 55116-035 8 1 I {
I 1 1
F.M. Frattalone Excavating 1
3066 Spruce Street I 5% 163,923.00
St. Paul, MN 55117
1 _
A. C.G. Inc.
587 S.W. 1st St. I 5% 172,144.00
New Brighton, MN 55112
Burschville Construction { 1
Box 167 1 5% 1 81,202.6 51
Loretto, MN 55357 { 1
i I
J. P. Norex, Inc. I 1 1
P. O. Box 476 { 5% I 182,96 4.001
Chanhassen, MN 55317 j I 1
1 I I
S.J. Louis Construction j 1 1
RR4, P. O. Box 51 80 1 5% I 183,153.601
St. Cloud, MN 56302 I I 1
1
F.F. Jedlicki, Inc. 1 1 1
14203 West 62nd St. 1 5% I 192, 898.001
Eden Prairie, MN 55344 1 I {
I 1 1
G.L. Contracting { { 1
P. O. Box 340 1 5% I 210, 892.671
Hopkins, MN 55343 1 j 1
Park Construction Company I I 1
7900 Beech Street, N. E. I 5% I 212,122.391
Minneapolis, MN 55432 { I 1
1 1 1
B & D Underground, Inc. I I 1
6130 Sunset Drive 1 5% I 216,6 81.001
Mound, MN 55364 1 I 1
1 _j 1
— 5!1
BID I TOTAL
PLANHOLDER I BOND I BID COMMENTS
I
Hydrocon, Inc. I 1
Box 129 1 5% I 230,677.00
North Branch, MN 55056 1 I
I I
Arcon Const. Co. , Inc. I I
P. O.. Box 57 I 5% I 234,339.95
Mora, MN 55051 I 1
.1 I
Crossings, Inc.
Box 10 5% I 238, 876.73
Prior LAke, MN 55372
Ames Const. Co. , Inc. I
14420 Co. Rd. #5 5% I 242,659.50
Burnsville, MN 55337 I
_ 1
6 •
RESOLUTION NO. HRA,=1986
RESOLUTION APPROVING A CONTRACT BETWEEN THE BOARD OF
COMMISSIONERS OF THE FRIDLEY HOlUSING AND REDEVELOPMENT
AUTHORITY AND SHORT-ELLIOTT-HENDRICKSON FOR STREET
IMPROJEMENTS TO TRUNK HIGHWAY 65, WEST MOORE LAKE DRIVE
AND RICE CREEK ROAD. '
IT IS HEREBY RESOLVED by the Board of Commissioners (the "Board") of the
Housing and Redevelopment Authority in and for the City of Fridley, Minnesota
(the "Authority") , as follows:
1. The Authority has heretofore approved the plans prepared by the
architectural firm of Short-Elliott-Hendrickson ("S.E.H") for the improvements
on the east and west side of T.H. 65 at the intersection of West Moore Lake
Dr. ; and
2. The Authority has heretofore authorized the City Manager to enter into a
Contract with S.E.H. for the development of final plans and specifications for
the intersecting legs in this area.
3. A Contract has been prepared and presented to the Board which provides for
the heretofore agreed upon road improvements to the interesection of T.H. 65
and West Moore Lake Drive and Rice Creek Road.
4. The Authority supports the necessary impravenents to State Trunk Highway
65 and Rice Creek Road for the development of the 100 TWin Drive-in site.
5. The Board hereby approves the Contract for such improvements and hereby
authorizes the Director and other officers of the Authority to execute the
Contract substanitally in its present form, but with such minor amendments,
deletions, or inserions as such officers may deem necessary or desirable, as
evidenced by their execution thereof, and the Board further instructs such
officers, upon full execution of the Contract, to take such actions as may be
necessary to effectuate and implement the terms thereof.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF FRIM EY THIS _ LAY OF , 1986.
LARRY COMMERS, CHAIRI"V N
HOUSING AND REDEVELOPMENT AUTHORITY
ATTEST:
NAS IM M. QURESH I, DIRECTOR
HOUSING AND REDEVELOPMENT AUTHORITY
6A
iiir 'DIRECTORATE o
OF � � co
0 0
PUBLIC WORKS
CSNp elf?
MEMORANDUM �—
f RIDLEY
•
r10: Nasim Qureshi, City Manager 1W86-157
FROM: John G. Flora, r,�iublic Works Director
DATE: June 6, 1986
SUBJECT: S.E.H. Contracts
We have received a new contract proposal from S.E.H. which includes all of
the work associated with the West Moore Lake Drive/Old Central
intersection, Highway 65 and Rice Creek Road improvements identified
essential for the development of the 100 Thin Drive-In site by Woodbridge
Properties.
The agreement addressed the work in three phases, Phase I - Preliminary
Plans, Phase II - Detailed Plans, and Phase III - Construction and
Inspection.
PHASE WEST IIOORE LAKE DR. HIGIWIY 65 RICE CREEK RD.
Prelim. Plans * * $ 7,100.00
Detailed Plans * $ 55,500.00 36,500.00
Construction S39.800.00 59.000.00 47.500.110
TOTAL $39,800.00 $114,500.00 $ 91,100.00
* Authorized in the current agreement at $30,750.00
The additional work at not to exceed costs is identified at $245,400.00
adding the existing contract, the total amount of design construction work
accomplished by S.E.H. for these improvements would be $276,150.00.
Coe the detailed plans have been completed for the three projects, we can
probably negotiate the construction and inspection phase of the work to a
lump sane bid as the specs for the work will then be identified. This
should result in a laver cost to the City. Currently the proposal based
upon a $2,000,000.00 construction project puts the agreement in the
neighborhood of 14.0 percent for design and inspection.
Recommend the HRA authorize the City to enter into an agreement with S.E.H.
to complete the design for the West Moore Lake Drive/Old Central
intersection, Highway 65 and Rice Creek Road improvements and the
construction inspection for this work to S.E.H. for a cost not to exceed
$276,150.00.
This design work is necessary to be accomplished as soon as possible if the
construction schedule for 1987 is to be satisfied.
JGF/ts
TO: Housing & Redevelopment Authority Members
FROM: Jock Robertson, Executive Director of HRA
DATE.. May 30, 1986
SUBJECT: The Inter-Technical Advisory Committee for the University Avenue
Corridor Study
O1 May 8, 1986 at the HRA meeting it was decided that
a Technical Advisory Committee should be formed to help the formulation of
the University Avenue Corrodor master plan.
Tne proposed group would include twelve individuals representing the
following areas:
1 - Anoka County
1 - MnIOT
1 - Frialey Dept. of Public Works
1 - Frialey Dept. of Comm. Develop.
3 - U iversity Avenue Businesses
1 - HRA Chairperson
2 - Syiva. Hills aria Hyde Park
1 - Holly Center
1 - Soon Plaza
The first eight representatives are in the process of being named. However ,
we oto neea suggestions for the last tour and I have attacheu a list or
businesses in Holly Center and Moon Plaza and a list of citizens in the
Sylvan Hills and Hyae Park area who have previously been identifies as being
active in community affairs.
Please forward any further suggestions to me. We would like to nave tr,e HLt.
appoint the Technical Advisory Conisttee at the scheduled meeting on June 1"4,
19b6. Thank you for your assistance in this matter.
JLR/ct.
cc: City Council
Attach.
M-86-113
7A
Holly Center Businesses
Owner/Rep: Gary Jackson, Heartland Assoc. , 4111 Central Ave, Suite 204 , Mpls . , MN 55421
Address
(University Avenue) Business
6525 Little Ceasar's Pizza
6524 Push Pedal and Pull
6526 Prime Design
6528 Champion Auto
6530 Minnesota Pets
6532 House of Large Sizes
6534 Lund's Fridley Office Products
6540 Old Country Buffet
6544 Fridley Dry Cleaners
654E Glad Rags
6554 Schaaf Floral
655E Video Exchange
6562 Radio Shack
6570 Nelsons Wallpaper 8 Paint
6574 Holly Street Hair Stylists
6578 Booked Solid
6582 Snyder Drug
6594 Larson, Donald , LeRoy Attorney
7B
MOON PLAZA BUSINESSES
Owner: ARG Enterprises, A.T. Gearman, 6205 University Ave. , Fridley, MN
ADDRESS BUSINESS
(UNIVERSITY AVE. )
6267 A-1 Lettering
6263 H & R Block
6259 Plaza Cleaners
6253 Daves Sports Shop
6251 Powdour Pouf Salon
6247 Buzz's Barber
6249 US Navy Recruiting
6243 Vacant
6239 Vacant
6235 J & L Dance Studio (basement)
6237 Jeanies Needle Art
6231 US Air Force
6229 Vacant
6225 US Army Recruiting
6225 Loren Green Associates (inside)
6223 A-A (basement)
6223 Marines
6221 Farmers Insurance
6215 Moon Plaza Resturar.t
6213 North Star Video
6209 Emerald Office Supply
6205 A & G Enterprises
6201 Affiliated Emergency Vet Servicel,
7c
Sylvan Hills "Active" Block Captains
Mr. and Mrs. Buckman 6240 Trinity Drive 571-0698
Ms. Delores Hartos 6200 Starlite Boulevard 571-5748
Mr. and Mrs. Kidder 6360 Starlite Boulevard 574-0637
Mr. and Mrs. Dennis Johnson 6336 Starlite Boulevard 571-0637
Mr. and Mrs. Coppicus 256 Mercury Drive 571-2097
Mrs . Knaepfle 6210 Rainbow Drive 571-8753
Hyde Park (to be organized this summer)
Alfred Gabel 5947 2 1/2 Street 571-1288
Patricia Gabel 5947 2 1/2 Street 571-1288
7D
iriJ
CITY OF
FRIDLEY
CIVIC CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY, MINNESOTA 55432 • PHONE(612) 571-3450
May 29, 1986
Richard Harris
6200 Riverview Terrace N.F.
Fridley, MI 55432
Dear Mr. Harris:
On May 8, 1986 at the HRA meeting, the consulting firm of
Barton Ashman was chosen to complete the University Avenue Corridor study.
At that time it was decided that a technical advisory committee would be
zormed to help in the formulation of a master plan.
The proposed group would include twelve individuals of the €ollaring types:
1 - Anoka County
1 - AInDDT
2 - Sylvan Hills & Hyce Park
1 - Holly Center
1 - Moon Plaza
1 - Public WoJ:s
1 - Community Developnent
3 - University Avenue Businessmen
1 - HRA Chair
In order to proceed with the formation of the group we are requesting that
you suit the names of the three individuals from the University Avenue
Businessmen's group which would take pert in the planning process.
Your timely consideration is appreciated, as we are proceeding to set up the
first meeting in mid June.
Thank you for your cooperation in this matter. We hope to hear from you
soon.
Sincerely,
r.ic'Reseeztma,)Jock Robertson
Executive Director of HRA
JLR/dm
cc: Jock Robertson Gerald Paschke
David Harris Robert Schroer
John Gargaro Rollie Benjamin
C-86-228
g
gar
DIRECTORATE
, ' o
OF t l cQo
PUBLIC WORKS —
�
CI'TY Of MEMORANDUM
f R1 DL.�.Y
T0: John G. Flora, Public Works Director PW86-149
FROM: Mark L. Burch, Asst. Public Works Director
DATE: May 29, 1986
SUBJECT: Removal of House at 5747 Central Ave. , N.E.
We received four bids on Wednesday, May 28, 1986 for the removal
of the house at 5747 Central Ave. , N.E. This house is being
relocated to allow alignment of Hathaway Lane and Central Ave.
in conjunction with our intersection improvement at Highway 65 and
West Moore Lake Drive.
The highest bid received was from Able Building Movers, Inc. of
St. Paul, Minnesota with a salvage bid of $257.00. The remaining
three bids were all demolition bids.
We recarmend that the Housing and Redevelofnent Authority award
the contract for removal of the house at 5747 Central Ave. to
Able Building Movers, Inc. for $257.00.
MLB/ts
7
BID OPENING 11:00 A.M. WEDNESDAY, MAY 28, 1986
PROJECT $166 - REMOVAL OF STRUCTURES AT 5747 CENTRAL AVENUE, N.E.
BID TOTAL
. PLANIIOLDER BC ND BID COMMENTS
Safeway Movers Check
5885 No. 165th St. $ 15.00 $ 257.00 Salvage Bid
Hugo, MN 55038
Gammon Bros. , Inc. Check
Rogers, MN 55374 $112.25 2,445.00 Demolition Bid
Doty & Sons
620 - 39th Ave. , N.E. 5% 5,200.00 Demolition Bio
Minneapolis, MN 55412
Ray Anaerson Check
930 Duluth St. $345.00 6,885.00 Demolition Bid
St. Paul, MN 55106
Dale Movers, Inc.
7816 Central Ave. NO BID
Spring Lake Park, MN 55432
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MEND TO: Jock Robertson and Nasim Qureshi
',FAO FROM: Jim Robinson ' ,
MEMO DATE: May 30, 1986
•
MEI{) SUBJECT: 6132 Central Ave.
My previous memo of May 27, 1986 to you on this subject states that Mr. Pierce
had witharawn his request to have the HRA purchase his property and had
requested to rezone the area to R-3 and construct a condominium on the property.
However, this morning Mr. Pierce phoned and has changed his mind and is again
requesting that the HRA purchase his land for $32,130.00.
The following is a summary of past action and details related to the property:
,February 28. 1986 Mr. and Mrs. Garry Pierce requested that the City of Fridley
Housing and Redevelopment Authority purchase Lot 5 ,
Auditor's Subdivision 88, from them for $45,000. At that
time, I informed them that the HRA does not have an active
acquisition program for that area.
March 13. 1986 The HRA reviewed the purchase request but took no action on
it. The indicated price was higher than previous
acquisitions in that area, ie: the Weitnauer lot, at 6391
Central Ave. , which the Housing and Redevelopemnt Authority
purchased last April for $ 14,000 was roughly $.85 a square
foot as well.
Flay 15. 1986 I received a subsequent letter frau the Pierce's requesting
$.85 per square foot. The Assessors Office estimated the
property to be 37,800 sq. tt. in area, which would be a cost
of $32,130.
The property is directly adjacent to the Saliterman property and is zoned R-l.
Tne assessed value of the property is $21,000 and there are $1,950.34 of special
assessments on the property. A map of the area is attached.
I informed Mr. Pierce that I would try to have his request placed on the June 12
HRA Agenda.
3/5/25/10
M-86-108
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1`]
WINFIELD DEVELOPMENTS, INC.
5780 Lincoln Drive, Edina, Minnesota 55436 Telephone(612) 938-8661/TWX: 910-576-3137
June 5, 1986
•
Mr. Nasim Qureshi
City Manager
City of Fridley
6431 University Avenue North East
Fridley, Minnesota 55432
Re: Fridley Business Plaza
Dear Mr. Qureshi:
Please allow this letter to clarify and summarize our recent discussions and the
City actions regarding Winfield's proposed Fridley Business Plaza.
First, Applications for Variances and a Special Use Permit have been approved.
Approval for the Watershed District Permit has also been obtained.
Second, the City Council has adopted a Preliminary Resolution regarding the issuance
of $3,000,000 in Industrial Development Bonds (IDBs). At present we are unable
to make application to the State of Minnesota for the IDB Allocation until after
September 30, 1986 due to the fact that the Project is not a manufacturing business,
an energy related project or is it located in a redevelopment district.
Third, as I indicated, we have just recently been made aware of a significant soil
problem at this site (see attached Soil Report Exhibit A). The estimate, furnished
by contractors, to correct the soil is in excess of $116,000. This cost coupled with
the already high cost of this Project, creates a serious problem in terms of financial
feasibility.
As indicated in our previous discussions, Winfield would like to request some assistance
from the City in order that we may move ahead with this Project. Specifically,
Winfield would like to request the following actions and assistance:
1) That the property be placed in a redevelopment district or that a
finding be made that the Project area could meet the criteria for
inclusion in a redevelopment district. This finding would allow Winfield
to use the approval for IDBs already granted by the City Council
to make application to the State of Minnesota. At the State we would
still have to compete for the State IDB allocation. Our understanding
of the criteria for establishment of a redevelopment district is that
this Project would easily qualify given the high soil correction cost
as compared to the property value. We feel it is imperative that
the IDBs be obtained at the State now for the following reasons:
WINNIPEG • REGINA • SASKATOON • MINNEAPOLIS
13A
Page 2
Mr. Nasim Qureshi
June 5, 1986
a) The Project feasibility is severely damaged without
•
the lower interest rate attainable through the IDBs.
b) If forced to wait until after September 30th to apply
to the State there is a good probability that the State
allocation will already be distributed to other projects
in other communities.
c) The tax law currently discussed in Congress raises
the concern that IDBs may be totally eliminated
on January 1, 1987.
2) That 3% of the Project value be provided for soil correction assistance.
On an approximately $3,000,000 project this would amount to about
$90,000. This amount creates a Project value to assistance ratio
of about 30 to 1 and looked at in another way amounts to about one
year's taxes on this Project.
3) That the above request be considered for Concept Approval by the
Fridley Housing and Redevelopment Authority at their meeting of
June 12th and by the City Council (assuming this is the correct
procedure) on June 16, 1986.
Previously summarized, we are at an impasse at present on the Project due to some
very real problems. The assistance requested is vital to this Project. If the City
can help in the manner requested we are prepared to move at once to commence
the Project. If I can be of any further assistance or answer any questions please
feel free to call me at 938-8661.
ncerely,
James F. Winkels
//Project Manager
v JFW/bl
cc James Casserly, Miller & Schroeder
James O'lIeara, O'Connor & Hannan
ll
•
CLAIMS
1480
RESOLUTION NO. HRA 8 - 1986
Resolution Relating to Assisting Winfield
Developments, Inc. , in Obtaining an Industrial
Development Bonding Allocation .
IT IS HEREBY RESOLVED by the Board of Commissioners ( the
"Board" ) of the Housing and Redevelopment Authority in and for
the City of Fridley, Minnesota (the "Authority" ) , as follows :
1 . ( a ) Winfield Developments, Inc. , a Minnesota corpor-
ation , has requested and received preliminary ap(,rc" J
from the City of Fridley for commercial develutent
revenue bonding in an amount not to exceed $3 , 000 , 000
for a proposed 55 , 000 square foot multi-tenant
industrial/commercial facility proposed to be located
within the City in the southeast quadrant of the inter-
section of 73rd Avenue and University Avenue.
(b) Winfield has also requested that the City assist
it in obtaining necessary industrial development bonding
allocation for the above-mentioned project , which allo-
cation is generally governed by Minnesota Statutes
( 1986 ) , Chapter 474A ( the "Bonding Allocation Act " ) .
(c ) A "commercial redevelopment project , " as defined
in the Bonding Allocation Act , receives favorable con-
sideration for being awarded bonding allocation
authority for that project .
(d ) Under Section 474A. 02 , Subdivision 5 (a ) cf the-
Bonding Allocation Act , a project qualifies as a
commercial redevelopment project if its site would
qualify as a redevelopment tax increment financing
district under Minnesota Statutes , Section 273 . 73 ,
Subdivision 10 , whether or not the project site is
actually included within a tax increment financing
district .
(e ) Winfield has presented to the City information
regarding the soil conditions of its intended project
site which indicate that soil corrections costing in
excess of $115 , 000 will be required to prepare the site
for the construction of the intended project .
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( f ) Under Section 273.73, Subdivision 10 (a ) ( 3 ) , a
project site can generally qualify for designation as
a redevelopment tax increment district if the sum of
the fair market value of the unimproved site, plus the
costs of soil corrections exceed the fair market value
of the site when the soil corrections have been
completed .
(g ) Winfield has supplied or will be supplying the
City with information indicating that the making of the
above-mentioned soil corrections would not increase the
market value of the project site by the full cost of
making those soil corrections .
(h ) On the basis of the foregoing information, and
solely for the purpose of assisting Winfield to obtain
necessary bonding allocation authority for the project ,
Winfield has asked the City to declare that its project
site would qualify as a redevelopment tax increment
financing district, within the meaning of Section
273 . 73 , Subdivision 10 (a ) ( 3 ) .
2 . The Board hereby advises the Fridley City Council that
it has no objection to the City assisting Winfield Developnents
to obtain the necessary industrial development bonding allocation
in the manner and to the extent provided above in this resolution .
The Board understands that the City is not contemplating actually
designating or asking the Authority to designate the Winfield
project site as a tax increment financing district .
3 . The officers of the Authority are hereby instructed to
transmit a copy of this resolution to the members of the Fridley
Cit •. Council or otherwise inform such Councilmembers of ' hc
content hereof .
Adopted this 12th day of June, 1986 .
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06-12-86 CHECK REGISTER
PAGE 1
FRIDLEY STATE BANK - HRA
DESCRIPTION VENDOR INV. # AMOUNT
1480 ***CHECK PREPAID***
OLSON, GUNN AND SERAN, LTD. $ 238. 30
LEGAL SERVICES
TOTAL CHECKS $ 238. 30
06-12-86 CHECK REGISTER
PAGE 1
FRIDLEY STATE BANK - HRA
DESCRIPTION VENDOR INV. # AMOUNT
1480 ***CHECK PREPAID***
OLSON, GUNN AND SERAN, LTD. $ 238. 30
LEGAL SERVICES
TOTAL CHECKS $ 238. 30