HRAM 06/06/2019
CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION
June 6, 2019
Chairperson Holm called the Housing and Redevelopment Authority Meeting to order at 7:00
p.m.
MEMBERS PRESENT: William Holm
Dave Ostwald
Gordon Backlund
MEMBERS ABSENT: Kyle Mulrooney
Elizabeth Showalter
OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director
Wally Wysopal, City Manager
Vickie Johnson, Development Consultant
Action Items:
1. Approval of Expenditures
MOTION by Commissioner Backlund to approve the expenses as submitted. Seconded by
Commissioner Ostwald.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY
2. Election of Officers
Paul Bolin, HRA Assistant Executive Director, said that now is the time for the regular annual
election which will serve from June of 2019 to June of 2020.
MOTION by Commissioner Backlund to nominate William Holm as Chair and Kyle Mulrooney
as Vice Chair. Seconded by Commissioner Ostwald.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY.
3. Award Demolition Contract – 6431 University Avenue NE
Paul Bolin, HRA Assistant Executive Director, as we typically done in the past work with asst
city engineer and carry out a formal bid project. This is for old city hall and parking area. Three
contractors submitted bids for the work. Frattalone Companies $435,634, Veit $496,483 and
Bolander $682,800. Staff recommends awarding the demolition contract to Frattalone Companies.
Housing and Redevelopment Authority Meeting of June 6, 2019 2
Staff had set a date to have the work done by July 19 but that will be delayed. There is an
interesting occurrence in the sale of the old site. Mr. Dunbar and his group who currently own the
site had no problem losing parking deck but now Fairview will buy those buildings to have more
parking on the site. We are getting close to a solution that will work for everyone but will delay
the demolition a few weeks. Staff is still recommending the Authority to approve the contract and
staff will authorize work when everything is finalized.
Commissioner Ostwald noted that it states that the bid opened 12 pm on June 31 and it should
st
read May 31.
MOTION by Commissioner Ostwald to approve and award the demolition contract to Frattalone
Companies in the amount of $435,634. Seconded by Commissioner Backlund.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIR HOLM DECLARED THE MOTION
CARRIED UNANIMOUSLY
4. Amendment to Fridley Investments LLC Agreement – 6431 University Avenue NE
Paul Bolin, HRA Assistant Executive Director, stated that this amendment memorializes changes
to the contract with HRA taking over the demolition. Original contract of $2.2M sales price, up
to $2M in demolition costs reimbursed to the developer. The Authority is taking on the demolition
greatly reduced cost of the demolition and costs incurred by the developer to now be deducted
from the purchase price at the time of closing. Staff recommends the Authority approve the
resolution to adopt this second amendment to the development contract with Fridley Investments,
LLC.
Commissioner Backlund asked what the new purchase price would be.
Mr. Bolin replied that the purchase price has always been $2.2 but we are going to put money into
the escrow that will be used for demolition.
MOTION by Commissioner Backlund to approve the Amendment to Fridley Investments LLC
Agreement – 6431 University Avenue NE. Seconded by Commissioner Ostwald.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIR HOLM DECLARED THE MOTION
CARRIED UNANIMOUSLY
5. Amendment to Lennar Agreement – Locke Park
Paul Bolin, HRA Assistant Executive Director, stated that in December of 2018 a contract was
signed with US Home Corporation (Lennar Homes) to build 72 townhomes. Lennar has asked for
changes to development contract that further define the roles of the Authority, Lennar and Braun
Incertec (consultant) in completing further environmental studies, obtaining letters of no
association and entering into the MPCA’s VIC program for reimbursement of study and cleanup
costs. Staff recommends the Authority approve the attached resolution to adopt this amendment
Housing and Redevelopment Authority Meeting of June 6, 2019 3
to the development contract with Lennar Homes, dba US Home Corporation. A substance was
found in the ground on the south side of the pond and they worked with MPCA with this small
area. Concentrations are not very high, less that required for cleanup. Because of that Lennar had
concerns so these changes further define the role of the Authority, Lennar and Braun Incertec to
address these issues as they come up.
Commissioner Backlund asked what the name of the substance that was found.
Mr. Bolin replied that it was a chemical used in production of plastics, foam and other substances.
Commissioner Holm asked who would prepare the construction contingency.
Mr. Bolin replied Braun Incertec in conjunction with the MPCA. If anything else is encountered
they would work with Braun and MPCA would figure out the solution.
MOTION by Commissioner Backlund to approve the Amendment to Lennar Agreement – Locke
Park. Seconded by Commissioner Ostwald.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY
Informational Items:
1. Housing Program update
Paul Bolin, HRA Assistant Executive Director, said that CEE closed on one revolving loan
making six year to date. Remodel Advisor Visits had six for a total of eight year to date and Home
Energy Squad had one visit for 14 year to date.
Adjournment:
MOTION by Commissioner Backlund to adjourn. Seconded by Commissioner Ostwald.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:35 PM.
Respectfully submitted,
Krista Peterson
Recording Secretary