Loading...
03-02-2023 Housing & Redevelopment Authority Regular Meeting March 02, 2023 7:00 PM Fridley City Hall, 7071 University Avenue N.E. Agenda Call to Order Roll Call Action Items 1.Approval of Expenditures 2.Receive the Minutes from the HRA Conference Meeting of January 5, 2023 3.Approval of the Minutes from the HRA Meeting of February 2, 2023 4.Approval of HRA Resolution No. 2023-07 Approving Purchase of Land for the Northtown Railyard Overpass 5.Approval of HRA Resolution No. 2023-08 Approving Application to Enter into Funding Agreement with the Department of Employment and Economic Development (DEED) for Grant Assistance for the 5400 Main Street NE Redevelopment Informational Items 6.Update on Housing Programs Adjournment Upon request, accommodation will be provided to allow individuals with disabilities to participate in any City of Fridley services, programs, or activities. Hearing impaired persons who need an interpreter or other persons who require auxiliary aids should contact the City at (763) 572-3450. 2 Jufn!2/ AGENDA REPORT Meeting Date:March 2, 2023 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Approval of Expenditures Background Attached are the check reports for the month of February 2023. Recommendation Staff recommend the HRA approve the expenditures for the periodFebruary1 through 28, 2023. Attachments and Other Resources Check Reports 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:March 2, 2023 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Receive the Minutes from the HRA Conference Meeting of January 5, 2023 Background Recommendation Staff recommends the HRA receive the minutes from the conference meeting of January 5, 2023 Attachments and Other Resources HRA Conference Meeting Minutes January 5, 2023 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 6 Jufn!3/ Housing and Redevelopment Authority Conference Meeting January 5, 2023 5:00PM Fridley City Hall, 7071 University Avenue NE Minutes Present Elizabeth Showalter Gordon Backlund Troy Brueggemeier Rachel Schwankl Kyle Mulrooney Walter Wysopal, City Manager Paul Bolin, HRA Assistant Executive Director Joe Starks, Finance Director Tammy Omdal, Managing Director, Northland Securities Items for Discussion 1. Review of HRACash Balances and Overview of Tax Increment Financing. Tammy Omdal, Managing Director, Northland Securities, provided an overview of the HRA Financial Management Plan. Staff was available to answer questions on the plan. Tammy Omdal also explained how tax increment financing would work with the proposed redevelopment of Moon Plaza. 7 Jufn!4/ AGENDA REPORT Meeting Date:March 2, 2023 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Approval of the Minutes from the HRA Meeting of February 2,2023 Background Recommendation Staff recommends the HRA approve the minutes from the meeting of February 2, 2023. Attachments and Other Resources HRA Minutes February 2, 2023 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 8 Jufn!4/ Housing and Redevelopment Authority February 2,2023 7:00 PM Fridley City Hall, 7071 University Avenue NE Minutes Call to Order Chairperson Showaltercalled the Housing and Redevelopment Authority meeting to order at 7:00 p.m. Present Elizabeth Showalter Gordon Backlund Troy Brueggemeier Rachel Schwankl Paul Bolin, HRA Assistant Executive Director Jessica Green, Development Consultant Vickie Johnson, Development Consultant Action Items 1. Approval of Expenditures Motionby Commissioner Brueggemeierto approve the expendituresfrom January 2023. Seconded by Commissioner Backlund. Upon a voice vote, all voting aye, Chair Showalterdeclared the motion carriedunanimously. 2.ApprovalJanuary 5,2023, Meeting Minutes Motionby Commissioner Brueggemeierto approve the meeting minutesof January 5,2023as presented. Seconded by Commissioner Schwankl. Upon a voice vote, all voting aye, Chair Showalterdeclared the motion carried unanimously. 3. Approval of HRA Resolution No. 2023-03, Increasing Interest Rate on Non-Deferred Home Improvement Loans Paul Bolin, HRA Assistant Executive Director, provided background information on how the interest rate has been set for non-deferred improvement loans. He noted that in 2018 the interest rate was set at two percent, but since that time interest rates have increased in the market noting that interest rates on MHFA loans now range between 5.75 and 6.85 percent. He stated that staff recommends that the interest rate be increased from two percent to four percent, effective March 1, 2023. 9 Jufn!4/ Housing and Redevelopment Authority 2/2/2023 Minutes Page 2 Motion by Commissioner Brueggemeier to approve HRA Resolution No. 2023-03, Increasing Interest Rate on Non-Deferred Home Improvement Loans. Seconded by Commissioner Backlund. Upon a voice vote, all voting aye, Chair Showalter declared the motion carried unanimously. 4. Approval of HRA Resolution No. 2023-04, Approving Purchase of 1340 Mississippi Street N.E. Mr. Bolin provided background on the properties the HRA has purchased in the proximity of Mississippi and Old Central. He stated that 1340 Mississippi is now available for purchase by the HRA. He stated that this property, combined with the other HRA owned properties would provide over three acres of contiguous property in that corner. Commissioner Schwankl asked if this would be the time to remove the existing structures from the properties. Mr. Bolin commented that staff is still attempting to negotiate with properties to the south. He stated that once they demolish buildings on the properties, the timeclock would start for the TIF district. Commissioner Brueggemeier asked if there are any plans for development. Mr. Bolin commented that during the last Comprehensive Planning process a definite plan was not decided upon but if the larger land area is acquired, patio homes could be developed. He estimated that if the southern parcels were acquired about 15 or 20 patio homes could be built. He stated that there will be a number of joint meetings between the HRA and City Council to decide on what should be developed on the property. Commissioner Backlund believed that there were homes on the two vacant parcels to the south. Mr. Bolin commented that those sites have not been developed. He stated that there was previously construction material on those sites as they had been used as dump sites in the past. Motion by Commissioner Backlund to approve HRA Resolution No. 2023-04, Approving Purchase of 1340 Mississippi Street N.E. Seconded by Commissioner Brueggemeier. Upon a voice vote, all voting aye, Chair Showalter declared the motion carried unanimously. 5. Approval of TIF Assistance Mr. Bolin stated that at the last meeting, the HRA reviewed and provided comments on the redevelopment proposal from Roers Companies for Moon Plaza. He stated that the HRA also received some information on the TIF assistance request that would come back to the HRA. He stated that tonight the HRA will consider the formal request for TIF Assistance. Jessica Green, Development Consultant, presented information on the proposed establishment of TIF District 26 and the TIF Plan. She also provided information on the project site and the proposed boundaries of the TIF District, noting that two parcels would be included in the boundary. She provided : Jufn!4/ Housing and Redevelopment Authority 2/2/2023 Minutes Page 3 background information on Tax Increment Financing (TIF), how that is used to support development, as well as specific information on the TIF that would be generated by this site. She reviewed the budget for the TIF District as proposed in the TIF Plan. She also reviewed the terms for assistance to the developer, which is the next action before the HRA. She stated that based on current market conditions, the project as proposed would not happen solely through private investment in the foreseeable future. Chair Showalter stated that at the last meeting she had asked if a portion of the units could be available at a lower rate and asked if the developer has considered that request. Mr. Bolin noted that eight units would be available for those at 30 percent AMI. He noted that has always been part of the plan. Shane LaFave, Roers Companies, stated that in the last month they received an award of tax-exempt bonds from the state. He commented that typically they are not awarded until the second or third application, but this was their first application, which can be indicative of less projects happening because of higher interest rates and construction costs. He stated that this project can move forward in the timing they had hoped. He stated that the vast majority of the units would be available at 60 percent AMI, with the identified number of units at 30 percent AMI. He stated that they did review the opportunity to lower the AMI on more units, but they were not able to reach the numbers they would need to receive financing. Commissioner Brueggemeier commented that it would seem if more units were offered at 50 percent AMI, the 30 percent AMI units would not be available. Mr. LaFave confirmed that it is a mix and match as long as the same level of income is provided in the end. Chair Showalter asked the increase in gap of what would make financial sense to add more lower AMI units. Mr. LaFave stated that he did not have a per unit cost. He stated that if the desire were for ten percent of the units to be lowered to 50 percent AMI, he would estimate $600,000 to $1,000,000 would be needed to fill that funding gap. Chair Showalter commented that information is helpful and thanked the applicant for the additional information. Commissioner Backlund asked the confidence level of this planning being accurate. 21 Jufn!4/ Housing and Redevelopment Authority 2/2/2023 Minutes Page 4 Mr. LaFave commented that most of their costs have been pretty vetted as they know the acquisition cost and have had their plans bid to expect construction costs. He stated that they have built similar projects in this area recently as well with the same contractor. He stated that they have a high level of confidence that the numbers are accurate and achievable, noting that they would look to begin construction this spring. He noted that the funding award from the state also provides confidence that they will be able to secure the funding to move forward. He provided details on the process thus far, working with City staff to ensure the needs and concerns of the City are met to provide a product that best serves the community and neighborhood. Commissioner Schwankl stated that the HRA is tasked with improving the community and believed that this project which will serve workforce housing and provide affordable housing is exciting. Mr. LaFave commented that they have enjoyed working with Fridley on their projects thus far and look forward to additional collaboration. He estimated that construction would be completed in 2025. Motion by Commissioner Brueggemeier to approve HRA Resolution No. 2023-05, Approving TIF elopment of Moon Plaza. Seconded by Commissioner Schwankl. Upon a voice vote, all voting aye, Chair Showalter declared the motion carried unanimously. 6. Approval of HRA Resolution No. 2023-06, Authorizing Execution and Delivery of a Contract for Private Redevelopment Commissioner Schwankl asked how the interest rate was determined. Ms. Green replied that five percent is the current going rate and noted -term financing comes in lower, that rate would be adjusted. Motion by Commissioner Brueggemeier to approve HRA Resolution No. 2023-06, Authorizing Execution and Delivery of a Contract for Private Redevelopment. Seconded by Commissioner Schwankl. Upon a voice vote, all voting aye, Chair Showalter declared the motion carried unanimously. Informational Items 7. Update on Housing Programs Mr. Bolin provided an overview of the loan activitiy between mid-December and mid-January. He noted that CEE did inform him that the senior deferred funds for the year have been committed for the year. 22 Jufn!4/ Housing and Redevelopment Authority 2/2/2023 Minutes Page 5 Adjournment Motion by Commissioner Brueggemeier to adjourn the meeting. Seconded by Commissioner Schwankl. Upon a voice vote, all voting aye, Chairperson Showalter declared the motion carried and the meeting adjourned at 7:41 p.m. Respectfully submitted, Melissa Moore City Clerk 23 Jufn!5/ AGENDA REPORT Meeting Date:March2, 2023 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Finance Director Title th Approval of Purchase 57Avenue BNSF Northtown Yard Overpass ROW Background In 2012 Anoka County prepared a Corridor Study for East River Road from US Interstate 694 toTrunk th Highway 610. As a top priority, the study recommended extending 57Avenue byconstructing a bridge over the BNSF railroad tracks.The new bridge would provide long neededaccess between UniversityAvenue andEast RiverRoad (location shown on map below). Right of way has been acquired on the west side of the tracks and negotiationson the east side of the railroad tracks started in 2021. Of the three parcels to acquire, BeamMN LLC, is the first to reach an agreement with the Authority. The total estimated cost for the Northtown Rail Yard Overpass is currently over $30,000,000. The HRA has authorized spending $800,000/yearon project costs, using funds from the Northstar Transit TIF District, to pay for a portion of the engineering ROW acquisition. Staff is actively pursuing Federal Grant funds and $4M in State Bonding to move the project closer to construction. It is anticipated that the project will receive the State Bonding money this session, providing the funding needed to finish the engineering and utility planning. Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 24 Jufn!5/ Recommendation Staff recommend the approval of HRA Resolution No. 2023-07, approving the purchase agreement and authorizing the Assistant Executive Director to sign documents needed to close on the property. Attachments and Other Resources !HRA Resolution No. 2023-07 !Map of ROW and Construction Easement Being Acquired Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 25 Jufn!5/ Resolution No. 2023 07 Approving Purchase of Land for Northtown Railyard Overpass Whereas, the Housing and Redevelopment Authority (Authority), have th identified the need to extend 57 Avenue NE by constructing a bridge over the BNSF Northtown Railyard between Main Street & East River Road, and; Whereas, construction of the overpass requires acquisition of property and temporary construction easements and; Whereas, the Authority had initiated conversations to purchase the necessary properties in 2021, and; Whereas, the BeamMN LLC, has agreed to sell the property, described in Attachment A, to the Authority for $125,650, plus legal fees not to exceed $4,500. Now, therefore be it resolved, that, the Authority approves the purchase and authorizes the Assistant Executive Director to sign documents necessary to close on the property described in Attachment A to this resolution. Passed and adopted by the Housing and Redevelopment Authority in and for the City of Fridley this 2nd day of March, 2023. _______________________________________________ Elizabeth Showalter Chairperson Attest: __________________________________________________ Walter T. Wysopal Executive Director 26 Jufn!5/ EXHIBIT A LEGAL DESCRIPTION OF PROPERTY That part of Lot 2, Block 1, HOME DEPOT FRIDLEY ADDITION, Anoka County, Minnesota, which lies northerly of the following described line: Commencing at the northeast corner of said Lot 2; thence South 1 degrees 07 minutes 40 seconds East, assumed bearing, along the east line of said Lot 2 a distance of 0.78 feet to an angle point on the east line of said Lot 2; thence continuing South 1 degrees 00 minutes 19 seconds East along said east line of said Lot 2 a distance of 40.63 feet to the point of beginning of the line to be described, said line hereinafter referred to as "Line A"; thence North 82 degrees 41 minutes 42 seconds West a distance of 250.79 feet; thence westerly 92.85 feet along a tangential curve, concave to the south, said curve having a radius of 760.00 feet and a delta angle of 7 degrees 00 minutes 00 seconds; thence North 89 degrees 41 minutes 42 seconds West, tangent to the last described curve a distance of 106.77 feet; thence westerly 98.97 feet on a tangential curve, concave to the north, said curve having a radius of 990.00 feet and a delta angle of 5 degrees 43 minutes 41 seconds to the north line of said Lot 2 and said "Line A" there terminating. (Area of Property = 7,975 square feet) Anoka County, Minnesota Torrens Property 27 Jufn!5/ 28 Jufn!6/ AGENDA REPORT Meeting Date:March 2, 2023 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Resolution of Grant Application Hyde Development 5400 Main Street Background Hyde Department of Employment and Economic Development's "Contamination Cleanup" grant program. As Hyde Development moves forward with redeveloping the All-Temp site at 5400 Main Street, they have identified a need for grant fundsto investigate and cleanup contamination on the site. At this time, Hyde Development has a deadline of May 1st to apply for this grant funding cycle from MN DEED. DEED's Contamination Cleanupprogram assists with contamination investigations and cleanup of contamination in accordance with a Minnesota Pollution Control Agency approved response action plan (RAP). This program provides funding to sites that are the most likely to be redeveloped in the very near future and its goal is to clean up contamination in order to allow a site to retain and create new jobs. Recommendation Staff recommend the approval of HRA Resolution No. 2023-08. Attachments and Other Resources Resolution No. 2023-08. Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 29 Jufn!6/ HRA RESOLUTION 2023 -08 RESOLUTION APPROVING APPLICATION TO ENTER INTO FUNDING AGREEMENT WITH THE DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT (DEED) FOR GRANT ASSISTANCE FOR THE 5400 MAIN STREET NE REDEVELOPMENT Be it resolved, that the Housing and Redevelopment Authority in and for the City of Fridley (hereafter Fridley HRA) act as the legal sponsor for project contained in the Contamination Cleanup and Investigation Grant Program to be submitted on May 1, 2023 and that Assistant Executive Director is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of the Fridley HRAA. Be it further resolved, that the Fridley HRA has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration. Be it further resolved, that the sources and amounts of the local match identified in the application are committed to the project identified. Be it further resolved, that the Fridley HRA has not violated any Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. Be it further resolved, that upon approval of its application by the state, the Fridley HRA may enter into an agreement with the State of Minnesota for the above referenced project(s), and that the Fridley HRA certifies that it will comply with all applicable laws and regulation as stated in all contract agreements. Now therefore, be it finally resolved, that the Chairperson and the Assistant Executive Director, are hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. Passed and adopted by the Fridley Housing and Redevelopment Authority in and for the City nd of Fridley, Minnesota, this 2 day of March, 2023. _______________________________________________ Elizabeth Showalter Chairperson Attest: __________________________________________________ Walter T. Wysopal Executive Director 2: Jufn!6/ I certify that HRA Resolution No. 2023-08 was adopted by the Housing and Redevelopment authority in and for the City of Fridley, Minnesota on March 2, 2023. ___________________________________ Melissa Moore - City Clerk 31 Jufn!7/ AGENDA REPORT Meeting Date:March 2, 2023 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Update on Housing Programs Background On a monthly basis, staff will provide updates from CEE loan programs, remodeling advisor visits and Home Energy Squad Visits. Attachments and Other Resources Chart of Loans Issued and Remodeling Advisor Visits Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 32 Jufn!7/ 24 6 5 36 11 36111/11 23 48891/11 1/11 11 1/11 1/11 11 1/11 1/11 11 1/11 1/11 11 1/11 1/11 11 1/11 :6924/11 66 :6924/11 2446:4/11 231924/11 78 11 1 1 796/82 222/22 / 225/3: 222/22 222/22 222/22 222/22 // 222/22 222/22 222/22 222/22 33