1/9/25
Housing and Redevelopment Authority
Meeting
January 09, 2025
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 December 5, 2024
3.Approval of Exclusive Negotiations Agreement
Informational Items
4.Update on Housing Programs
Adjournment
Accessibility Notice:
If you need free interpretation or translation assistance, please contact City staff.
Si necesita ayuda de interpretación o traducción gratis, comuníquese con el personal de la ciudad.
Yog tias koj xav tau kev pab txhais lus los sis txhais ntaub ntawv dawb, ces thov tiv tauj rau Lub Nroog cov
neeg ua hauj lwm.
Haddii aad u baahan tahay tarjumaad bilaash ah ama kaalmo tarjumaad, fadlan la xiriir shaqaalaha
Magaalada.
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 CityClerk@FridleyMN.govor (763) 572-3450.
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AGENDA REPORT
Meeting Date:January 9, 2025 Meeting Type:Housing & Redevelopment Authority
Submitted By:Paul Bolin, Assistant Executive Director
Title
Approval of Expenditures
Background
Attached are the check reports for the monthsof November and December2024.
Recommendation
Staff recommend the HRA approve the expenditures for the period November 1, 2024,through
December 31, 2024.
Attachments and Other Resources
Check Reports
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
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AGENDA REPORT
Meeting Date:January 9, 2025 Meeting Type:Housing & Redevelopment Authority
Submitted By:Paul Bolin, Assistant Executive Director
Title
Approval of the Minutes from the HRA Meeting of December 5, 2024
Background
Recommendation
Staff recommends the HRA approve the minutes from the meeting of December 5, 2025.
Attachments and Other Resources
HRA Minutes December 5, 2024
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
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Housing and Redevelopment Authority
December 5,2024
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 (arrived at 7:01 p.m.)
Troy Brueggemeier
John Buyse
Rachel Schwankl
Others Present
Paul Bolin, HRA Assistant Executive Director
Joe Starks, Finance Director
Vickie Johnson, Development Consultant
Action Items
1.ApprovalNovember 7,2024, Meeting Minutes
Motionby Commissioner Buyseto approve the meeting minutesof November 7,2024,as presented.
Seconded by Commissioner Schwankl.
Upon a voice vote, all voting aye, Chair Showalterdeclared the motion carried unanimously.
2.Designation of an Official Newspaper for 2025
Paul Bolin, Assistant Executive Director, explained that annually the HRA designates an official
newspaper. He stated that for the past six years that paper has been the Minneapolis Star Tribune,
which has changed its name to the Minnesota Star Tribune. Staff recommends approval of the
resolution as presented.
Commissioner Backlund arrived.
Motionby Commissioner Brueggemeierto approve HRA Resolution No. 2024-05 Designating the
Minnesota Star Tribune as the Official Newspaper of the Fridley Housing and Redevelopment Authority
for the Year 2025. Seconded by Commissioner Buyse.
Upon a voice vote, all voting aye, Chair Showalterdeclared the motion carried unanimously.
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Housing and Redevelopment Authority Minutes Page 2
12/5/2024
3. Resolution No. 2024-06 Designating Official Depositories for the Year 2025
Mr. Bolin stated that annually the HRA designates depositories for its funds and provided additional
background information supporting the recommendation of staff to approve the resolution as
presented.
Motion by Commissioner Buyse to approve HRA Resolution No. 2024-06 Designating Official
Depositories for the Housing and Redevelopment Authority for the Year 2025. Seconded by
Commissioner Schwankl.
Upon a voice vote, all voting aye, Chair Showalter declared the motion carried unanimously.
4. Proposed 2025 Budget
Joe Starks, Finance Director, stated that this information was reviewed in more detail at the November
meeting and asked the Commission to formally approve the HRA 2025 budget tonight. He provided
a brief summary of the HRA budget components, highlighting any changes since the November
review.
Commissioner Schwankl asked how the sales tax revenue the City will receive will be used. Mr. Bolin
replied that those funds would be used towards the loan and grant programs which have income
limits. Mr. Starks explained how the funds are allocated and shown in the budget, confirming that
those funds can only be used as described by Mr. Bolin.
Motion by Commissioner Brueggemeier to approve of the 2025 HRA Budget as proposed. Seconded by
Commissioner Buyse.
Upon a voice vote, all voting aye, Chair Showalter declared the motion carried unanimously.
Informational Items
5. Update on Housing Programs
Mr. Bolin provided an update on the loan and housing program activity during the past month as well
as year to date. He noted that it has been a very successful year.
Adjournment
Motion by Commissioner Buyse 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 7:14 p.m.
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Housing and Redevelopment Authority Minutes Page 3
12/5/2024
Respectfully submitted,
Paul Bolin, Staff Liaison
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AGENDA REPORT
Meeting Date:January 9, 2025 Meeting Type:Housing & Redevelopment Authority
Submitted By:Paul Bolin, Assistant Executive Director
Title
Approval of Exclusive Negotiations Agreement
Background
Staffis asking the Authorityto approve aContract forExclusive Negotiations with Centra Homes, LLC
regarding potential housing development on the Authority-owned land at oldCentral Avenue N.E. and
Mississippi Street N.E. Centra Homes has proposed constructing 24-27 single-family homeson the site,
with construction to begin by the Fall of this year.
The Contractwould be effective through May 31, 2025, during which time Centra Homes would
conduct necessary due diligence including geotechnical analysis, utility assessment, and preparation of
preliminary site plans. They will also develop a project pro forma and marketing strategy for the owner-
occupied homes. Throughout this period, the Authority would help with land use applications and
permit review while maintaining exclusive negotiations with Centra Homes.
The contract allowsboth parties to work toward a comprehensive Redevelopment Contract that would
address crucial elements including purchase price, development timeline, construction quality
standards, and other specific requirements. The agreement includes provisions for the creation of a
homeowner's association to manage lawn and irrigationmaintenance for the development.
Recommendation
Staff recommend the approval of HRA Resolution No. 2025-01, approving the contract for exclusive
negotiations.
Attachments and Other Resources
HRA Resolution No. 2025-01
Contract for Exclusive Negotiations
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
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Resolution No. 2025-01
Contract for Exclusive Negotiations
Whereas, the Housing and Redevelopment Authority in and for the City of Fridley (the
h
owned property located at Central Avenue and Mississippi Street; and
Whereas, Centra Homes, LLC was the development group most qualified to meet the needs of
the City; and
Whereas, a Contract for Exclusive Negotiations provides assurances to Centra Homes that the
Authority intends to work with them exclusively on the development of the site; and
Whereas, the exclusive negotiations time period allows Centra Homes, LLC to complete their due
diligence, develop site plans for Authority review, and work with the Authority on a Development
Contract.
Now, therefore be it resolved, that the Authority approves the Contract for Exclusive
Negotiations with Centra Homes, LLC.
Passed and adopted by the Housing & Redevelopment Authority in and for the City of
Fridley this 9th day of January, 2025.
_______________________________________________
Elizabeth Showalter - Chairperson
Attest:
_________________________________________________
Walter T. Wysopal - Executive Director
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EXECUTION: January ______, 2025
CONTRACT
FOR
EXCLUSIVE NEGOTIATIONS
By and Between the
HOUSING AND REDEVELOPMENT AUTHORITY
In and For
THE CITY OF FRIDLEY, MINNESOTA
And
CENTRA HOMES, LLC
This document was drafted by:
Vickie L. Loher-Johnson, Esq.
Monroe Moxness Berg PA
7760 France Ave South, Suite 700
Minneapolis, MN 55435
952-885-5999
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CONTRACT FOR EXCLUSIVE NEGOTIATIONS
THIS AGREEMENT, effective as of this _____ day of January, 2025 is between
the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota
7071 University Avenue N.E., Fridley,
Minnesota 55432, and Centra Homes, LLC, a Minnesota limited liability company with its
principal offices at 11460 Robinson Drive NW, Minneapolis, MN 55433
WHEREAS, in December of 2024, the Redeveloper made a presentation to the
Authority and the City Council of the City of Fridley with regard to the potential
development of housing on land owned by the Authority and located in the area of Central
Avenue N.E. and Mississippi Street N.E. in the City of Fridley as generally identified on
the map attached h; and
WHEREAS, the Redeveloper is proposing to develop the Site and is requesting
that the Authority negotiate exclusively with the Redeveloper while the Site is being
studied and designed; and
WHEREAS, the Authority is willing to negotiate exclusively with the Redeveloper
provided certain conditions described below are met;
NOW, THEREFORE, in consideration of the mutual obligations of the parties
hereto, each of them does hereby covenant and agree with the other as follows:
Section 1.1. Definitions. In addition to the words and terms elsewhere defined in
this Agreement, the following words and terms shall have the following meanings in this
Agreement unless a different meaning clearly appears from the context:
ans this Agreement, as the same may be from time to time
modified, amended, or supplemented.
Fridley, Minnesota.
he Council of the City.
24 27 single family housing units.
Centra Homes, LLC, a Minnesota limited liability company.
described in Section 4 of this Agreement.
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Improvements.
l property generally depicted on Schedule A of this Agreement.
Section 2.1. Representations by the Authority. The Authority represents that it is
a public body duly organized and existing under the laws of the State and that it has the
power to enter into this Agreement and carry out its obligations hereunder.
Section 2.2. Representations by the Redeveloper. The Redeveloper represents
as follows:
(A) The Redeveloper is a Minnesota limited liability company authorized to do
business in the State of Minnesota and has duly authorized the execution
of this Agreement and the performance of its obligations hereunder.
(B) Neither the execution and delivery of this Agreement, the consummation of
the transactions contemplated hereby, nor the fulfillment of or compliance
with the terms and conditions of this Agreement will constitute a breach of
any obligations of the Redeveloper under the terms and conditions of any
indebtedness, agreement or instrument of whatever nature to which
Redeveloper is now a party or by which it is bound, which breach will
materially adversely affect the ability of Redeveloper to perform its
obligations under this Agreement.
Section 3.1. Redeveloper Responsibilities. The Authority will provide all existing
applicable due diligence reports, documents, and plans related to the Site to the
Redeveloper however the Authority makes no representations or warranties as to the
completeness or accuracy of the reports, documents and plans it provides. The
Redeveloper shall be responsible for conducting its own due diligence at the sole cost
and expense of Redeveloper including:
(A) Conduct geotechnical analysis, as necessary.
(B) Determine the adequacy of the available utilities.
(C) Review information needed for Watershed District approval and any other
governmental approvals needed by the Redeveloper for completion of the
Redevelopment Project.
(D) Prepare a preliminary site plan for the Site showing the size, nature and
location of the Minimum Improvements including architectural design of the
multi-family housing units, use of exterior materials, landscaping, fencing,
lighting and parking.
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(E) Prepare a preliminary marketing analysis showing the need and a proposed
development schedule for all phases of the Minimum Improvements.
(F) Prepare a project pro forma for the initial phase of the Minimum
Improvements.
(G) Develop a marketing plan for owner-occupied housing and potential
builders to commence vertical home construction by the Fall of 2025.
Section 3.2. Authority Responsibilities. The Authority shall be responsible for the
following:
(A) Assist the Redeveloper with permit review and application for grants if
needed.
(B) Negotiate exclusively with the Redeveloper in accordance with the terms of
this Agreement.
Section 4.1. Contract for Private Redevelopment. Prior to the termination of this
Agreement, the Parties shall negotiate the terms of a Redevelopment Contract. Authority
and Redeveloper agree to work expeditiously and in good faith toward a Redevelopment
Contract.
unfettered discretion. The Redevelopment Contract shall address the issues involving
the development of the Site, including the following:
A. The Purchase Price
B. Timing of the Minimum Improvements
C. Composition and quality of the Minimum Improvements
D. Timing of any public improvements
E. Redeveloper guarantees
F. Duration
G. Geotechnical and environmental issues
H. The creation documents
for the Site, with a declaration or similar agreement associated therewith to
be recorded by the Redeveloper at the closing on the acquisition of the Site
HOA Declaration is to include, among other
actions of the HOA as determined by the Redeveloper, the process by
which the HOA collects from the owner(s) of each parcel contained within
the Site a sufficient and reasonable monthly allotment to cover landscaping
maintenance, irrigation and snow removal costs associated with the
individual parcels to be located on the Site. The Declaration will be subject
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to the reasonable review and approval of the Authority as a condition of
closing.
Section 5.1. Termination. This Agreement shall automatically terminate on May
31, 2025, unless both parties agree in writing to extend this Agreement. The
indemnification obligations of Redeveloper, as set forth in Section 6.1, shall expressly
survive such termination.
Section 5.2. Effect. This Agreement outlines the
intend to negotiate in good faith and that such negotiations may lead to the execution of
a definitive Redevelopment Contract. Each Party retains throughout the course of this
Agreement complete and unfettered discretion to conduct its negotiations and perform its
responsibilities in the manner it sees fit. The Parties agree that upon termination of this
Agreement they shall have no further obligation to each other except as provided for in
this Agreement and the Parties further agree to execute any document reasonably
necessary to evidence termination.
Section 6.1. Additional Provisions:
(A) The Redeveloper
the express written consent of the Authority.
(B) Each Party shall make all reasonable efforts to cooperate with the other
(C) Except for any willful misrepresentation or any willful or wanton misconduct
by the Authority, the City, or their agents, officers, and employees, the
Redeveloper shall hold the Authority and the City, their agents, officers and
marketing, acquisition, and construction of the Minimum Improvements.
(D) The Parties are not partners in the development of the Minimum
Improvements or in any activities contemplated by the Agreement.
(E) Notice, demand, or other communication from one party to the other shall
be deemed effective if sent by certified mail, postage prepaid, return receipt
requested or delivered personally to a party at its address in the first
paragraph of this Agreement, or at such other address as such party may
designate in writing to the other party.
(F) In the event of termination of this Agreement due to site constraints which
render the property undevelopable, and in the absence of a Redevelopment
Agreement, Redeveloper shall within thirty (30) days of such termination
make available to the Authority for unrestricted use and at
no cost to the Authority, all non-proprietary work product, including market
analyses, soil and engineering reports, geotechnical reports, infrastructure
construction budgets, research materials and other documentation
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produced specifically for the Redevelopment Project. This obligation shall
survive termination of this Agreement.
(G) This Agreement is not to be recorded against the Site.
(H) The Redeveloper shall indemnify, defend and hold the Authority harmless
from and against any and all direct losses, damages, causes of action,
Claimsuthority as a result
of the entry upon the Site or the performance of any inspection or work upon
the Site by Redeveloper, its agents, contractors, and employees, including,
persons or damage to the Site, including to any improvements located on
the Site. All entries, inspections and/or work upon the Site by Redeveloper,
its agents, contractors and employees shall be at the sole risk of such
entrants. Redeveloper and its agents and/or contractors must carry the
following forms of insurance relative to the conduct of any entry, inspection
and/or work on the Site: Commercial General Liability $1,000,000 per
occurrence; $2,000,000 aggregate; Automobile liability combined single
limit $1,000,000; Umbrella liability $2,000,000 aggregate; and Workers
indemnification obligations of Redeveloper relative to Claims under this
paragraph shall survive expiration or termination of the Agreement.
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly
executed in its name and behalf, and the Redeveloper has caused this Agreement to be
duly executed in its name and behalf, both as of the date first above written.
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Dated: January ____, 2025 HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
FRIDLEY, MINNESOTA
By:
Its Chairperson
By:
Its Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF ANOKA )
On this _____ day of January, 2025, before me, a notary public within and for
Anoka County, personally appeared _________________ and _________________, to
me personally known, who by me duly sworn, did say that they are the Chairperson and
Executive Director, respectively, of Housing and Redevelopment Authority in and for the
City of Fridley, Minnesota, and acknowledged the foregoing instrument on behalf of said
Authority.
Notary Public
Authority Signature Page Contract for Exclusive Negotiations
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Dated: January ____, 2025 CENTRA HOMES, LLC
By:
Name:
Its:
STATE OF MINNESOTA )
) ss.
COUNTY OF _________ )
On this _____ day of January, 2025, before me, a notary public within and for
____________ County, personally appeared __________________, to me personally
known, who by me duly sworn, did say that he/she is the ___________________, of
Centra Homes, LLC, a Minnesota limited liability company, and acknowledged the
foregoing instrument on behalf of said limited liability company.
Notary Public
Redeveloper Signature Page Contract for Exclusive Negotiations
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SCHEDULE A
General Depiction of the Site
4904-2950-6311, v. 4
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AGENDA REPORT
Meeting Date:January 9,2025 Meeting Type:Housing & Redevelopment Authority
Submitted By:Paul Bolin, AssistantExecutive Director
Title
Update on Housing Programs
Background
On a monthly basis, staff will provide updates from
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.
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05
26
0
45
0.00
00
0.00
0.00
0.00
00
00
70361.00
331
763127.17
10000.00
27
40000.00
0.00
05
79451.00
0.00
00
0.00
0.00
01
6502.20
0.00
00
0.00
0.00
02
50458.82
0.00
013
200000.00
1139539.19
80361.00
559
0.00017960.001
0.00042772.001
0.0060732.002
0
23
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11.64
11.22
/
5285.25
33.66
69.84
56.10
23.28
22.44
78.54
56.10
22.44
33.66
//
11.22
/
22.44
22.44
44.88
44.88
22.44
910.98
22.44
44.88
89.76
44.88
44.88
56.10
-
11.22
22.44
24