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5-1-2025 Housing and Redevelopment Authority Meeting May 01, 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 February 6, 2025 3.Amendment to Exclusive Negotiations Agreement Centra Homes 4.Award Demolition Contract Central Avenue & Mississippi Street Informational Items 5.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. 1 Jufn!2/ AGENDA REPORT Meeting Date:May 1, 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 February, March& April2025. Recommendation Staff recommend the HRA approve the expenditures for the period February1, 2025,through April 30, 2025. Attachments and Other Resources Check Reports Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 2 Jufn!2/ 3 Jufn!2/ 4 Jufn!2/ 5 Jufn!2/ 6 Jufn!2/ 7 Jufn!2/ 8 Jufn!3/ AGENDA REPORT Meeting Date:May 1, 2025 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Approval of the Minutes from the HRA Meeting of February 6, 2025 Background Recommendation Staff recommends the HRA approve the minutes from the meeting of February 6, 2025. Attachments and Other Resources HRA Minutes February 6, 2025 Vision Statement We believe Fridleywill be a safe, vibrant, friendly and stable home for families and businesses. 9 Jufn!3/ Housing and Redevelopment Authority February 6,2025 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 Absent John Buyse Others Present Paul Bolin, HRA Assistant Executive Director Action Items 1. Approval of Expenditures Motionby Commissioner Backlundto approve the expenditures. Seconded by Commissioner Brueggemeier. Upon a voice vote, all voting aye, Chair Showalterdeclared the motion carried unanimously. 2.ApprovalJanuary 9,2025, Meeting Minutes Motionby Commissioner Brueggemeierto approve the meeting minutesof January 9,2025,as presented. Seconded by Commissioner Backlund. Upon a voice vote, all voting aye, Chair Showalterdeclared the motion carried unanimously. 3.Approval of Resolution 2025-02 Declaring Structures Substandard Paul Bolin, HRA Assistant Executive Director, provided background information on the exclusive agreement with Centra Homes that was approved at the last meeting for the five acres of HRA-owned land at Central Avenue and Mississippi Street. He stated that they continue to prepare the site for future development and would like to demolish the structures by the end of March. He noted that 10 Jufn!3/ Housing and Redevelopment Authority Minutes Page 2 2/6/2025 an analysis was completed that the structures were deemed substandard. He provided additional information on the substandard structures proposed to be demolished. Commissioner Schwankl asked if this would have any impact on the price the developer will offer when the lots are purchased or whether this would shorten the duration of the project. Mr. Bolin confirmed that this action would shorten the duration of the prep work the developer will need to do and will also have an impact on the cost of the lots. He explained that tax increment financing (TIF) is often used to prepare sites for development/redevelopment. Commissioner Brueggemeier asked if the developer demolished the Moon Plaza strip mall. Mr. Bolin replied that the developer torn down that building and was reimbursed through TIF. Chair Showalter noted that was also a large-scale developer who both knocks down buildings and builds new ones where this is a home builder. Commissioner Schwankl asked if there would be tree removal or soil work with this action. Mr. Bolin replied that this action would simply be to remove the structures. He stated that the City will continue to maintain the property until it is transferred in ownership. Commissioner Backlund asked if there is hazardous material on the site. Mr. Bolin explained the process that would be followed to identify and properly dispose of any such materials. Motion by Commissioner Backlund to approve HRA Resolution No. 2025-02, Declaring Structures Substandard. Seconded by Commissioner Brueggemeier. Upon a voice vote, all voting aye, Chair Showalter declared the motion carried unanimously. Informational Items 4. Update on Housing Programs Mr. Bolin provided an update on the January loan activity, as well as year-to-date information on the loans and programs. He also noted the upcoming homeowner programs open house which will take th place on March 19 from 5 7 p.m. Adjournment Motion by Commissioner Backlund to adjourn the meeting. Seconded by Commissioner Brueggemeier. Upon a voice vote, all voting aye, Chairperson Showalter declared the motion carried and the meeting adjourned at 7:11 p.m. Respectfully submitted, Paul Bolin, Staff Liaison 11 Jufn!4/ AGENDA REPORT Meeting Date:May 1, 2025 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Amendment to Exclusive Negotiations Agreement Centra Homes Background In January, the Authority selected Centra Homes as the preferred developer for the Authority owned ce, develop site plans, proformas and enter into a development agreement with the Authority. We anticipated having a st development agreement by May 31 caused the need to extend the timeframeof the agreement. Since November 2023, the City has been working to resolve boundary survey issues for the Authority owned property at Central and Mississippi Street. We have diligently provided all requested documentation to the County Examiner of Titles. Despite our diligence, we are still awaiting final resolution nearly 18 months later. In fact, it is likely to take another 3-6 months to resolve the issue. The property cannot be platted or transferred until this issue is resolved. Recommendation Staff recommend the approval of HRA Resolution No. 2025-03, extending the length of the exclusive negotiations agreement through December 1, 2025. Attachments and Other Resources HRA Resolution No. 2025-03 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 12 Jufn!4/ EXECUTION: May ______, 2025 FIRST AMENDMENT TO 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 13 Jufn!4/ FIRST AMENDMENT TO CONTRACT FOR EXCLUSIVE NEGOTIATIONS THIS FIRST AMENDMENT (this , effective as of this _____ day of April 2025 is between the Housing and Redevelopment Authority in and for the City of es at 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, on January 21, 2025 the parties hereto entered into that certain Contract for Exclusive Negotiations related to 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 Exhibit A attached to the Agreement ; and WHEREAS, the parties desire to extend the termination date of the Agreement from May 31, 2025 to December 1, 2025 in order to allow for additional time for the completion of the Torrens Registration process associated with the Site, which process is currently pending with the Anoka County Registrar of Titles; and WHEREAS, Capitalized terms not defined in this Amendment shall be as defined in the Agreement. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, and other just and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties, each party does hereby covenant and agree with the other as follows: 1. Section 5.1 of the Agreement is hereby deleted in its entirety and replaced with the following: Section 5.1. Termination. This Agreement shall automatically terminate on December 1, 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. IN WITNESS WHEREOF, the Authority has caused this Amendment to be duly executed in its name and behalf, and the Redeveloper has caused this Amendment to be duly executed in its name and behalf, both as of the date first above written. \\Tjhobuvsft!po!gpmmpxjoh!qbhft^ 14 Jufn!4/ Dated: May ____, 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 April, 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 First Amendment to Contract for Exclusive Negotiations 15 Jufn!4/ Dated: May ____, 2025 CENTRA HOMES, LLC By: Name: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF _________ ) On this _____ day of April, 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 First Amendment to Contract for Exclusive Negotiations 16 Jufn!4/ 4900-3519-9802, v. 1 17 Jufn!4/ Resolution No. 2025-03 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, the Authority approved an Exclusive Negotiations Agreement, in January 2025, providing assurances to Centra Homes that the Authority intends to work with them exclusively on the development of the site; and Whereas, the exclusive negotiations agreement was to terminate upon signing a development st agreement or upon reaching May 31; and Whereas, delays caused by the Torrens Registration process have prevented progress on a development agreement. Now, therefore be it resolved, that the Authority approves the First Amendment to Contract for Exclusive Negotiations with Centra Homes, LLC through December 1, 2025. Passed and adopted by the Housing & Redevelopment Authority in and for the City of Fridley this 1st day of May, 2025. _______________________________________________ Elizabeth Showalter - Chairperson Attest: _________________________________________________ Walter T. Wysopal - Executive Director 18 Jufn!5/ AGENDA REPORT Meeting Date:May 1, 2025 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Award Demolition ContractCentral Avenue & Mississippi Street Background Despite delays in resolving property boundary issues, the Authority has continued to move forward in preparing the site for development. In February, the Authority adopted a resolution declaring the properties blighted. This declaration allows the Authority to move forward with demolition of the blighted structures and include the property in a future tax increment financing (TIF) district to recover the costs associated with the demolition. As the Authority has done on previous demolition projects, environmental engineering firm Terracon was hired to conduct a hazardous materials assessment and manage the demolition process on behalf of the Authority. Terracon ensures that all hazardous materials are properly removed and disposed of prior to the demolition. That work took place in April. Terracon solicited bids from three reputable demolition contractors to demolish the structures, remove all utilities to the property line and cap any wells found on the sites. Bids were received from Rachel Contracting, Bollig & Sons, and Building Code Tech. Bids ranged from $87,678 to $111,200, with Bollig & Sons submitting the lowest bid. A summary of the bid results is attached. It is anticipated that the demolition work will be completed by July 1, 2025. Recommendation Staff recommend the approval of HRA Resolution No. 2025-04, awarding the demolition work to Bollig & Sons. Attachments and Other Resources HRA Resolution No. 2025-04 Bid Results Summary Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 19 Jufn!5/ Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 20 Jufn!5/ Jufn!5/ Jufn!5/ Resolution No. 2025-04 Award of Demolition Contract Whereas, the Housing and Redevelopment Authority in and for the City of Fridley (the solicited bids to demolish blighted structures on Authority owned property located at Central Avenue and Mississippi Street; and Whereas, bids were received from three reputable demolition contractors; and Whereas, Bollig & Sons provided the lowest bid. . Now, therefore be it resolved, that the Authority approves awarding the demolition contract to Bollig & Sons. Passed and adopted by the Housing & Redevelopment Authority in and for the City of Fridley this 1st day of May, 2025. _______________________________________________ Elizabeth Showalter - Chairperson Attest: _________________________________________________ Walter T. Wysopal - Executive Director 25 Jufn!6/ AGENDA REPORT Meeting Date:May 1,2025 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 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. 26 Jufn!6/ 24 8 5 30 0.00 00 0.00 0.00 0.00 00 00 107225.80 613 271927.13 10000.00 12 20000.00 0.00 00 0.00 0.00 00 0.00 0.00 00 0.00 0.00 00 0.00 0.00 00 0.00 0.00 01 16197.70 308124.83 117225.80 716 97132.00297132.002 97132.0097132.002 2 27 Jufn!6/ 1794.44 13.70 15.56 27.41 13.70 414.81 311.11 27.41 13.70 311.11 311.11 27.41 27.41 27.41 - 13.70 28