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HRAM 12/03/2020 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION December 3, 2020 Chairperson Holm called the Housing and Redevelopment Authority Meeting to order at 7:00 p.m. MEMBERS PRESENT: William Holm Kyle Mulrooney Elizabeth Showalter Rachel Schwankl Gordon Backlund OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Dan Tienter, Finance Director ACTION ITEMS Staff requested the following to be added to the Agenda:  Approval of the Amendment to the Development Agreement for Fridley Investments, Old City Hall.  Approve Resolution Concerning the disposition of Funds of the sale of Old City Hall. MOTION by Commissioner Showalter to approve the additions to the Agenda as shown above. Seconded by Commissioner Schwankl. UPON A VOICE VOTE, ALL VOTING AYE, CHAIR HOLM DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. Approval of Expenditures MOTION by Commissioner Showalter to approve the expenses as submitted. Seconded by Commissioner Schwankl. UPON A VOICE VOTE, ALL VOTING AYE, CHAIR HOLM DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. Approval of November 5, 2020 Meeting Minutes MOTION by Commissioner Showalter to approve the November 5, 2020 minutes as submitted. Seconded by Commissioner Schwankl. UPON A VOICE VOTE, ALL VOTING AYE, CHAIR HOLM DECLARED THE MOTION CARRIED UNANIMOUSLY. Housing and Redevelopment Authority Meeting of December 3, 2020 2 th 3. Resolution for the 7 Amendment of Sherman and Associates Apartments at NorthStar Village. Paul Bolin, HRA Assistant Executive Director, stated that these changes are a result of the requirements from the projects lender and tax credit investor. They took on RBC as a partner and tax credit investor. Changes to the development agreement extend the term of the HRA loan from 20 years to 20.5 years and also clarifies the defaults in the representations. Warranties from the first phase don’t carry over on to the second phase. This gives RBC authority to remove George Sherman under certain default situations and is a typical requirement for tax credit investors. Chair Holm said that this looks like typical change requests and doesn’t look like there are any specific major issues. th MOTION by Commissioner Showalter to approve the Resolution for the 7 Amendment of Sherman and Associates Apartments ad NorthStar Village. Seconded by Commissioner Schwankl. UPON A VOICE VOTE, ALL VOTING AYE, CHAIR HOLM DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. Resolution for Execution of Amendments to the Development Agreement for the Old City Hall, Fridley Investments Ebenezer Senior Apartments. th Paul Bolin, HRA Assistant Executive Director, said that this is the 9 amendment and is needed because of last months addition of United Properties to the development team. The escrow agreement between the Authority, Fairview and Fridley Investments; Fridley Investments put $300,000 into an account that provides Fairview five years to decide if they need parking. If parking is not needed, that money will be returned to the Authority. Steve Dunbar thanked the team that pulled this all together so quickly and they are working toward the final closing. This is the structural piece to bring the partnership forward and to close. MOTION by Commissioner Showalter to approve the resolution for the Execution of Amendments to the Development Agreement for the Old City Hall, Fridley Investments Ebenezer Senior Apartments. Seconded by Commissioner Schwankl. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. Resolution Concerning the Amendment to the Resolution to 2018-14 Disposition of City Hall Site and Payment to the City. Paul Bolin, HRA Assistant Executive Director, stated that the land that is under the old city hall was a combination of HRA and City owned land. The City owned the land that contained the building, the HRA owned the land where the parking lots were and the land around the building. The agreement was that the property would be sold for fair market value less the redevelopment costs and the remaining funds turned over to the City. The purchase price was $2.2M and the Housing and Redevelopment Authority Meeting of December 3, 2020 3 developer had $45,000 in reimbursable expenses plus $300,000 in escrow for up to five years, then the Authority expenses for the demo, attorney fees and survey work. There will be some funds left over and in discussions with the City, it’s more advantageous to the City for the Authority to hold those funds and spend it around the civic campus for the expansion of Lock Parkway. If we gave the funds to the City, City Charter would require that money be put toward the debt service on the new building. This resolution would further specify the Authority to hold on to those funds and spend them on the new civic campus. Chair Holm commented that this enhances the development of the complex and housing around the new city hall. Dan Tienter, Finance Director, added that this has been discussed this with City Council and they have expressed their support. MOTION by Commissioner Showalter to approve the Resolution Concerning the Amendment to the Resolution to 2018-14 Disposition of the City Hall Site and Payment to the City. Seconded by Commissioner Schwankl. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE MOTION CARRIED UNANIMOUSLY. 6. Approval of the 2021 HRA Budget Dan Tienter, Finance Director, said that as part of the annual budget development process, Housing and Redevelopment Authority staff prepare a proposed budget for review by the Authority. The proposed 2021 budget reflects action of the HRA Board including current agreements, existing programs and current or pending Tax Increment Financing (TIF) District plans. Mr. Tienter noted that on September 7, 2020, the HRA Board adopted Resolution No. 2020-08 approving the levy for property taxes payable in 2021. On November 5, 2020, the HRA Board reviewed the Cash Flow Projections which included information about the status and plans for cash fund. Generally, the budget for the HRA contains three major components of the General Fund Housing Loan Program Fund, and the TIF District Funds. For the Proposed 2021 Budget, the City opted to upload all funds and their respective budgets into its financial system. Mr. Tienter said that the Proposed 2021 General Fund Budget has significant revenue changes including a $35,935 increase in the property tax levy. These and other changes represent an increase in revenue of about $34,415. The General Fund Budget expenditure changes include $21,020 increase in administrative changes from the City and $1,000,000 increase in capital outlays. These and other changes represent an increase in expenditures of about $1,034,494. Apart from the General Fund budget modification, staff made no other changes from the Cash Flow Projection as presented at the previous HRA work session. MOTION by Commissioner Showalter to approve the 2021 HRA Budget. Seconded by Commissioner Schwankl. Housing and Redevelopment Authority Meeting of December 3, 2020 4 UPON A VOICE VOTE, ALL VOTING AYE, CHAIR HOLM DECLARED THE MOTION CARRIED UNANIMOUSLY. INFORMATIONAL ITEMS 1. Housing Program Update Paul Bolin, HRA Assistant Executive Director, reported there were three housing loans this past month for a total loan of 24 year to date. No remodel advisor visits making 10 year to date. Home Energy Squad did four visits for a total of 39 year to date. ADJOURNMENT MOTION by Commissioner Showalter to adjourn. Seconded by Commissioner Schwankl. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:36 PM. Respectfully submitted, Krista Peterson Recording Secretary