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HRA 02/01/1982 SPEC CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY SPECIAL MEETING FEBRUARY 1 , 1982 CALL TO ORDER: Vice-Chairperson Houck called the Special Housing & Redevelopment Authority meeting to order at 6:15 p.m. ROLL CALL: Members Present: Russell Houck, Carolyn Svendsen, Elmars Prieditis, Duane Prairie, Larry Commers (arr. 6:30 p.m.) Members Absent: None Others Present: Jerrold Boardman, City Planner Virgil Herrick, City Attorney Tim Signorelli , Administrator - Columbia Park Clinic CENTER CITY PROJECT - PHASE II - COLUMBIA PARK CLINIC: Mr. Boardman stated that at the last meeting, they discussed what the City was trying to do with the Columbia Park Clinic and the development on that property. At that meeting, the HRA set the value on the option property at $1 .45 per sq. ft. They also made a motion approving the intent of the contract documents and agreed that if the Clinic goes on the property, they will take down the structures that face University Ave. This would be done within a time period based on the actual start of construction and completion of the Clinic. Mr. Boardman stated that since that meeting, he and Mr. Herrick met with Mr. Signorelli , and several members of the Columbia Park Clinic team, Dr. Wright, their architect, Bob Morasco, their attorney, Eric Anderson, and the architect from BWBR, Will Johnson, in order to get everything in order regarding the contract. After that meeting, Eric Anderson, the attorney for Columbia Park Clinic, did summarize the changes that should be made in the contract. Mr. Boardman stated he and Mr. Herrick have gone over these changes and the HRA members were given the new contract at this meeting. Mr. Boardman stated that, if possible, he is looking for an approval of the contract documents by the HRA and the authorization to enter into those contract documents as soon as all of the figures and all the partners of the Clinic get together. Mr. Signorelli showed the HRA the building site plan and a picture of the artist's concept of the building. SPECIAL HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 1 , 1982 PAGE 2 Mr. Boardman stated there is enough parking on the site for the Clinic, plus square footage for amenities, etc. If they are able to get a developer for the office building, at that time the HRA will have to look at it very carefully, because they will have to look at some additional parking in this area. He stated they got the indication from Dr. Wright of the Columbia Park Clinic that -k there is the 100% possibility they would proceed with some portion of the second phase and 75% possibility they would proceed with all of the second phase. So, the HRA has to go with the idea that the Columbia Park Clinic is going to expand to the maximum and that it will most likely expand by 1986. If they are going to put in an office building, they are really going to have to consider how they would handle the parking. (Mr. Commers arrived at 6:30 p.m. ) Mr. Signorelli stated the next step is the working documents. If the HRA feels everything is appropriate and the Clinic is allowed to go ahead, sometime within the next week they would commission the start of the working drawings which would allow them to start construction in late April . Mr. Boardman asked Mr. Signorelli to explain the financing, because that is going to be the key to the City's start of acquisition. Mr. Signorelli stated their investment brokers are Juran and Moody. He stated theyhave indicated theywould be willingto give a formal commitment letter, and that letter could be forthcoming within the next couple of weeks, or possibly sooner. Mr. Boardman stated it is his understanding that a commitment letter from Juran and Moody would be adequate for the HRA to look at as the 100% financing commitment. Mr. Boardman stated they have completed the contract document as much as they can. They have shown the $1 .45 on the sale price of the option property. They have laid out where the building would be located in the option and they tied together the necessary parking for that option,rated at one stall per every 200 sq. ft. of office space rated at 350 sq. ft. Regarding the question of easements on the option, they have added language that it would be conditioned on the City code requirements. Mr. Boardman stated that at the meeting they had with the Columbia Park Clinic partners, they did discuss how they would handle the office building if it was built. So, in this document, they have an agreement that if the City takes any of the Columbia Park Clinic property, they would have to provide improvements and parking back to the Columbia Park Clinic in an equal amount of space. One other condition the Columbia Park Clinic people wanted was a condition of where the City could locate an office building. Mr. Signorelli stated that at the last HRA meeting, the question was raised about what happens if the Columbia Park Clinic does not expand to the full 28,000 sq. ft. , given the fact that the City has an objective to develop around 90,000 sq. ft. of rentable space. They were trying to come up with the best way to protect the f ' SPECIAL HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 1 , 1982 PAGE 3 City and still not put the Clinic in the position of having a building right next to them that might block their visibility. The concept they decided upon was they would target an area on which another building could be built, and that if the Clinic does not expand up to the full 28,000 sq. ft., the City would automatically have the right to develop a building within another area on the same site. Mr. Boardman stated that is called the "Negative Easement Parcel" under Schedule A in the document. Also, in the document is an "access easement". The Clinic is requesting an "access easement" of 30 ft. for garbage pick-up and for servicing the building. He did not think they would have too much problem gaining this access. Mr. Herrick stated there are four factors the HRA should consider: 1) There is a requirement that all of the buildings have to be acquired and removed within one year after the property is sold. The cost of that in terms of what it is going to cost to acquire the property and take the buildings off the property, the grading, and the loss of taxes would be a factor. 2) The easement along the south side of the property is on property that is not presently controlled. That property is owned by Fridley State Bank and would have to be negotiated. 3) A conveyance of the vacated 4th St. In order for the first phase of the Columbia Park Clinic building to fit on the property, they will need all of the vacated 4th St. 4) There would be a provision that the building on the westerly phase would have to be located within a certain area. (Ms. Svendsen left the meeting at 7:07 p.m.) Mr. Prieditis stated he thought the development of the Columbia Park Clinic would be a great benefit to the Center City area and a great benefit to the citizens of Fridley. MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO AUTHORIZE THE EXECUTIVE DIRECTOR TO ENTER INTO CONTRACT AGREEMENTS WITH COLUMBIA PARK CLINIC. Mr. Commers stated he also felt this was a fantastic thing for the City of Fridley. However, he was still concerned about the cash flow and the require- ment to take down the front structures in phase 2 at the time of the start of construction of Phase 1 without some kind of commitment on the part of Columbia Park Clinic. He thought they were giving the Clinic a very fair and reasonable 4 SPECIAL HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 1 , 1982 PAGE 4 deal as far as price and, therefore, he thought they should get some kind of . commitment from Columbia Park Clinic. Until that takes place, he could not in good faith vote in favor of the structure as it now stands. UPON A VOICE VOTE, HOUCK, PRIEDITIS, AND PRAIRIE VOTING AYE, COMMERS VOTING NAY, VICE-CHAIRPERSON HOUCK DECLARED THE MOTION CARRIED BY A VOTE OF 3-1. ADJOURNMENT: MOTION BY MR. COMMERS, SECONDED BY MR. PRAIRIE, TO ADJOURN THE MEETING AT MEETING. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON HOUCK DECLARED THE SPECIAL HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 7:23 P.M. Re ectfully su mitted, dl7(?f Lynne Saba Recording Secretary