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05-06-2021 HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING May 06, 2021 7:00 PM Fridley City Hall, 7071 University Avenue N.E. AGENDA Call to Order Roll Call Action Items 1. Approval of Expenditures 2. Approval of the Minutes from the HRA Meeting of April 1, 2021 3. Interfund Loans for Future Redevelopment of Old Central & Mississippi Street Informational Items 4. Update on Housing Programs Adjournment The City of Fridley will not discriminate against or harass anyone in the admission or access to, or treatment, or employment in its services, program, or activities because of race, color, creed, religion, national origin, sex, disability, age, marital status, sexual orientation or status with regard to public assistance. Upon request, accommodation will be provided to programs, and activities. Hearing impaired persons who need any interpreter or other persons with disabilities who require auxiliary aids should contact Roberta Collins at (763) 572-3500. (TTD/763-572-3534). 2 Jufn!2/ AGENDA REPORT Meeting Date: May 6, 2021 Meeting Type: Housing & Redevelopment Authority Submitted By: Paul Bolin, Assistant Executive Director Title Approval of Expenditures Background Recommendation Staff recommends the HRA approve the expenditures for the period April 1 through April 29, 2021. Attachments and Other Resources !Check Report Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 3 Jufn!2/ 4 Jufn!2/ 5 Jufn!3/ AGENDA REPORT Meeting Date: May 6, 2021 Meeting Type: Housing & Redevelopment Authority Submitted By: Paul Bolin, Assistant Executive Director Title Approval of the Minutes from the HRA Meeting of April 1, 2021 Background Recommendation Staff recommends the HRA approve the minutes from the HRA meeting of April 1, 2021. Attachments and Other Resources !HRA Minutes April 1, 2021 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 6 Jufn!3/ CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION April 1, 2021 Vice Chair Mulrooney called the Housing and Redevelopment Authority Meeting to order at 7:00 p.m. MEMBERS PRESENT: Kyle Mulrooney Rachel Schwankl Gordon Backlund MEMBERS ABSENT: William Holm Elizabeth Showalter OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Vicki Johnson, Development Consultant ACTION ITEMS 1. Approval of Expenditures MOTION by Commissioner Schwankl to approve the expenses as submitted. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, VICE CHAIR MULROONEY DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. Approval of February 4, 2021 Meeting Minutes MOTION by Commissioner Backlund to approve the February 4, 2021 meeting minutes as submitted. Seconded by Commissioner Schwankl. UPON A VOICE VOTE, ALL VOTING AYE, VICE CHAIR MULROONEY DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. Approval of Purchase at 1314 Mississippi Street NE. Paul Bolin, HRA Assistant Executive Director, stated that the 2020 Comprehensive Plan 7 Jufn!3/ Housing and Redevelopment Authority Meeting of April 1, 2021 2 replacing the current mix of single-family residential and commercial uses with higher density residential development that together with the health club may serve as an attractive residential location for move- the corner of Mississippi and Central, do not receive financing and lose their effective status, the City should continue to pursue high density, senior housing for those corners to guide the southern portion of this intersection for commercial type uses. Focus should be given to similar type uses, like gas, convenience, barber and dog groomer, but other convenience uses could be added to provide fresh food, a coffee shop, or fast food. The southern portion of the intersection is zoned S-2, Redevelopment District and has received approval to have a mixed-use building constructed on it with small elements of commercial on the ground floor and residential above. That concept would The new building would be one lot, one building and will include 13,750 square feet of retail space on the north side of the ground floor and 90 owner-occupied senior condominium units located above the rental and the remainder of the building. Staff recommends a motion approving the purchase of 1314 Mississippi Street and authorizing Staff and Chairperson to execute documents necessary for closing on the purchase. Commissioner Schwankl asked if any of the leases would be renewed. Mr. Bolin replied no, once we close on the property we will meet with tenants and present relocation plans to make sure everyone is taken care of. Vicki Johnson, Development Consultant, added that the leases were assigned to the current owner by nature of the previous transaction. The short-term leases will be expired soon. Commissioner Schwankl said that this is one of the priorities in the Comprehensive Plans and for HRA; she supports this purchase. MOTION by Commissioner Schwankl to approve the purchase of 1314 Mississippi Street NE. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, VICE CHAIR MULROONEY DECLARED THE MOTION CARRIED UNANIMOUSLY. 8 Jufn!3/ Housing and Redevelopment Authority Meeting of April 1, 2021 3 INFORMATIONAL ITEMS 1. Housing Program Update Mr. Bolin reported there was one loan closed in March for a total of seven year to date. Fridley HRA Gran Programs Summary !Front Door Grant 20 applications received resulting in three signed agreements !Foundations MR Grant four applications received with no signed agreements !Exterior Paint Grant one application received with no projects completed There were three Remodeling Advisor Visits for a total of three year to date and four Home Energy Squad Visits. ADJOURNMENT MOTION by Commissioner Backlund to adjourn. Seconded by Commissioner Schwankl. UPON A VOICE VOTE, ALL VOTING AYE, VICE CHAIR MULROONEY DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:21 PM. 9 Jufn!4/ AGENDA REPORT Meeting Date: May 6, 2021 Meeting Type: Housing & Redevelopment Authority Submitted By: Paul Bolin, Assistant Executive Director Title Interfund Loans for Future Redevelopment of Old Central & Mississippi Street Background The City first identified the area around Old Central and Mississippi Street, as an area for redevelopment, nearly 25 years ago as part of the Fridley 2020 Comprehensive Plan. The area, east of Old Central, from th Mississippi Street to 64 Avenue, has remained in the follow up 2030 and 2040 Comprehensive Plans as a priority area for redevelopment. st The Authority approved the purchase of 1314 Mississippi Street on April 1 and is expected to close on the property in the next two weeks. Staff is having the remaining parcels appraised in anticipation of potential purchase discussion with the other property owners. To recover pre-development expenses paid from the HRA General Fund, the Authority regularly creates interfund loans. The loans are repaid from future land sales proceeds and future taxes generated on the property. The attached resolution formally authorizes the loaning of money to the potential project and the repayment of money to the general fund. Recommendation Staff recommends that the Authority adopt the attached resolution approving interfund loans between the HRA General Fund and the Old Central Redevelopment Project. Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. : Jufn!4/ Resolution No. 2021-05 Approving Interfund Loans Associated with the Old Central Redevelopment Project Be it resolved, by the Board of Commissioners (Commissioners) of the Housing and Redevelopment Authority in and for the City of Fridley (Authority) as follows: Section 1. Recitals. 1.01 The Authority is considering the redevelopment of the area east of Old Central and north of Mississippi Street (Site). 1.02!The Authority has agreed to finance certain costs in categories identified on Exhibit A (Qualified Costs) on a temporary basis from Authority funds available for such purposes. 1.03!The Authority has already advanced or loaned money and will continue to advance or loan money to finance Qualified Costs under Minnesota Statutes § 469.176, subd. 4 from its general fund or any other fund under which it has legal authority to do so, pursuant to Minnesota Statutes § 469.178, subd. 7. 1.04 The Authority intends to create a tax increment financing district (TIF District) on the Site pursuant to Minnesota Statutes, §§ 469.174 to 469.179. 1.05 The Authority intends to reimburse itself for the Qualified Costs from tax increments generated from the TIF District, once it is created, in accordance with terms of this ). 1.06 The Authority acknowledges the need to create and maintain an ongoing Register of Advances (Register), as shown on Exhibit A, to reflect the continuing interfund loans and advances in accordance with the TIF Loans. Section 2. Terms of the TIF Loans. 2.01 The Authority shall repay the specific Authority fund from which the Qualified Costs were and are to be paid, the principal amounts as shown on Exhibit A attached hereto, together with accrued interest from the date of each expenditure at a rate which may not exceed the greater of the rates specified under (a) Minnesota Statutes § 270C.40 or (b) Minnesota Statutes § 549.09. The interest rate for each calendar year during the term of each TIF Loan shall be determined as of each January 1 using the maximum rate under clause (a) or (b) in effect as of that date. 2.02 Principal and interest payments (Payments) for each TIF Loan shall be paid annually on December 31 of the first year of receipt of Available Tax Increment (defined in § 2.03 below) and on each December 31 thereafter (Payment Dates), up to and including the earlier of (a) payment in full of each TIF Loan or (b) the termination date of the TIF District. Payments shall be 21 Jufn!4/ applied first to accrued interest and the balance to the reduction of principal. Interest accruing from the date of each expenditure to the first Payment Date shall be compounded annually on December 31 of each year and added to principal. 2.03 Payments on each TIF Loan are payable solely from Available Tax Increment, which shall mean the tax increment available from the TIF District and available for that purpose from any other TIF District, after withholding (a) allowable Authority administrative fees, and (b) prior obligations, which shall include all general obligation or revenue bonds or notes for which the tax increment revenues of a TIF District is pledged. 2.04 The principal sum and accrued interest payable under each TIF Loan may be prepaid in whole or in part at any time without premium or penalty. No partial prepayment of any TIF Loan shall affect the amount or timing of any regular payments otherwise required to be made under the TIF Loans. 2.05 Each TIF Loan is evidence of internal borrowing by the Authority in accordance with Minnesota Statutes § 469.178, subd. 7, and is a limited obligation payable solely from the Available Tax Increments pledged to the payment thereof under this resolution. The Authority shall have no obligation to pay any principal amounts of the TIF Loans or accrued interest thereon which may remain unpaid after the final Payment Date. 2.06 The Authority may amend the terms of any TIF Loan at any time by resolution of the Board of Commissioners, including a determination to forgive the outstanding principal amounts and accrued interest to the extent permissible under law. Section 3. Approval. The Board of the Authority hereby approves the creation of a Register of Advances and the appointment of the Finance Director of the City to maintain the Register to reflect an accurate accounting of the interfund loans and advances, and approves their repayment in accordance with the TIF Loans. Passed and adopted by the Housing and Redevelopment Authority of the City of Fridley th this 6 day of May, 2021. _______________________________________________ William B. Holm - Chair ATTEST: __________________________________________ Walter T. Wysopal - Executive Director 22 Jufn!4/ Exhibit A Register of Advances Qualified Expense Date Paid Amount Paid Land/Building Acquisition Relocation Site Improvements/Preparation Costs Installation of Public Utilities Parking Facilities Streets and Sidewalks Public Park Facilities Capitalized Interest Other Interest Expense Other Contingency Administrative Costs 23 Jufn!5/ AGENDA REPORT Meeting Date: May 6, 2021 Meeting Type: HRA Regular Meeting Submitted By: Paul Bolin, Asst. Executive Director Title Update on Housing Programs Background loan programs, remodeling advisor visits and Home Energy Squad Visits. Attachments and Other Resources !Chart of Loans Issued & Remodeling Advisor Visits Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 24 Jufn!5/ 27 2: 27 44 11 1/11 14 72:69/11 11 1/11 11 1/11 1/11 12 8:99/:4 11 11 84717/45 46 234717/45 2:4664/38 84717/45 4: 45963/11321:483/114 45963/1121:483/114 3 -- 28/7: 29/44 / 23:3/42 29/44 29/44 29/44 // 29/44 / 29/44 29/44 29/44 327/78 29/44 29/44 25