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HRA 07/19/1990 - 29611�" �'`� �� CITY OF FRIDLEY HOIIBING AND REDEVSLOPMBNT AIITHORITY MEBTING� JIILY 19� 1990 �.�. ww.w. CALL TO ORDER: Chairperson Commers called the July 19, 1990, Housing and Redevelopment Authority meeting to order at 7:05 p.m. ROLL CALL: Members Present: Members Absent: Others Present: Larry Commers, Virginia Schnabel, John Meyer, Duane Prairie, Walter Rasmussen None Jock Robertson, Executive Director of HRA Paul Hansen, Accountant Virgil Herrick, HRA Attorney Jim Casserly, Casserly Molzahn Paul J. Noyes, CPM, Inc. Michael Schrader Dick Bienapfl, Boisclair Corp. & Associates APPROVAL OF JUNE 21, 1990, HOUSING AND REDEVELOPMENT AUTHORITY MINUTES• OTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the June 21, 1990, Housing and Redevelopment Authority minutes as written. IIPON A VOICE VOTE� ALL VOTING AYE, CHAIRPER80N COl�II�IERB DECLARED T8E MOTION CARRIED IINANIMOIISLY. l. PROPERTY MANAGEMENT AND LEASING CONTRACT FOR RICE PLAZA SHOPPING CENTER: Mr. Robertson stated that in his memo dated July 12 to the HRA, he had listed the major items he thought should be compared from the three firms who submitted proposals for the management and leasing of the Rice Plaza Shopping Center. He stated he is recommending the HRA direct staff to negotiate a manaqement/ leasing contract with the Kordiak Company because their rates are competitive, they had very good recommendations from references, and they are located close by and are available on a 24 hour basis. �� HOUSING &_REDEVELOPMENT AUTHORITY MTG. JULY 19. 1990 PAGE 2 Mr. Commers asked staff to put together a schedule showing the various tenants and the term of the leases. Mr. Robertson stated he had that information available and would provide the HRA with that information. Mr. Commers asked the length of the management and leasing contract. Mr. Robertson stated it will be a yearly contract. If they can make the lease longer, until they dispose of the property, with a breaker clause, that would give the HRA the option of breaking the contract whenever the HRA wanted. Mr. Commers stated he believed a yearly contract is alright. MOTION by Mr. Prairie, seconded by Mr. Meyer, to authorize staff to negotiate a management/leasing contract with the Kordiak Company based on the proposal submitted by The Kordiak Company dated June 21, 1990. IIPON A VOICE VOTE, RA8MII88EN ABSTAINING, CHAIRPERBON COMMERS DECLARED THE MOTION CARRIED DNANIMOIIBLY. � Mr. Robertson stated that since the closing is scheduled for Friday at 9:30 a.m. and staff wants to get the contract as soon as possible, he is suggesting that the HRA Chairperson sign the final terms of the contract with The Kordiak Company before the August 9th HRA meeting. �"� MOTION by Ms. Schnabel, seconded by Mr. Prairie, to authorize the HRA Chairperson to execute any final terms of the contract before the August 9, 1990, HRA meeting. IIPON A VOICE VOTE, RABMIISSEN ABBTAINING, CHAIRPERBON COMMERS DECLARED THS MOTION CARRIED IINANIMOIISLY. 2. INVESTIGATION OF CAN-AMERICAN (BOISCLAIR) LOW/MODERATE INCOME HOUSING PROPOSAL: Mr. Robertson stated Mr. Gregory has submitted a more detailed proposal. The HRA bond counsel, Jim O'Meara, has reviewed it and met with Mr. Gregory. Mr. Dick Bienapfl is at the meeting to go over the proposal so that the HRA can more clearly understand the implications of this on the HRA's present bond obligations. They are now at the point where, in staff's judgment, it is going to take some extensive consulting work the part of the financial consultant, legal consultant, and bond counsel before they can get a clear recommendation back to the HRA and City Council. Mr. Robertson stated that staff has indicated to ASPRE that because of the costs involved, staff is recommending a filing fee of $7,500. They, in turn, are willing to proceed on this basis �� �, �� HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 19. 1990 PAGE 3 but want to get some indication that both the City Council and HRA are willing to proceed to do further analysis. Since Dave Newman is leaving as HRA attorney, staff does not know how the work is going to be divided on this project. He stated he does not feel comfortable proceeding until he gets a clear idea of what the assignments are going to be. Also, staff needs some opinion from the City Council whether they are interested in having the HRA proceed with such an arrangement where the HRA would end up owning Village Green and hiring a property manager to opera�e the facility so that they could ensure the continuation of low and moderate income housing. Mr. Robertson stated that at this meeting, he is recommending the HRA implement a policy statement to charge an administrative fee of $7,500. He would also like some indication of the HRA's level of interest in proaeeding at this point. Mr. Commers stated they should first address the policy statement. Mr. Robertson stated the administrative fee of $7,500 for recovering some of front-end costs for the analysis of development proposals. Mr. Casserly helped staff develop this. It is based on the experience they have had on the number of projects where the financial analyses and feasibility studies were done and then, for some reason or another, the projects were not able to proceed and they were not even able to recover the administrative costs through the additional tax increment revenues. This fee would be refundable if and when the project did proceed. Mr. Commers asked if this policy is typical. Mr. Casserly stated this concept is used in a number of cities. He believed it is within the range of what is reasonable. The policy tries to do two things: 1. To separate those developers who are just making inquiries from those developers who really want to do some projects. 2. To cover some of the HRA cash flow drain at the inception of these things. There are a lot of up-front expenses that take a long time to recover. Mr. Commers stated that in terms of rendering services, the HRA funds come from taxes so that is a consideration in how they spend the money. Also, in the past the HRA has imposed certain requirements upon developers such as letters of credit or asked them to do studies or put up money to pay for certain thinqs on more of ad hoc basis. So, there are two sides to this issue. �, HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 19. 1990 PAGE 4 Mr. Robertson stated there is a circuit-breaker in the policy statement (Section VI, Subd. C) which states: "Upon completion of any inquiry or decision on a TIF application, the HRA shall render a total of all claims and charges paid. The HItA shall refund any outstanding balance." Mr. Casserly stated he thought this is policy that will be very helpful. As the HRA gets into very difficult redevelopment projects where the HI2A is out seeking redevelopers, this is not the kind of policy that makes sense. So, the HRA does not have to impose this policy when the HRA is initiating redevelopment. This policy is trying to address the problem of developers coming in and making application to use the powers and funds that are available to the HRA for projects that are very specific to the developers. Mr.•Casserly stated the HI2A might want to implement the policy and then review it in six months to see what the implications are. Mr. Meyer stated they can try the policy for a year. He asked what some other cities are�doing. Mr. Casserly stated Arden Hills has this identical policy. New Brighton is trying it on an ad hoc basis. On their last project, � they charged $6,000 for the initial work and were requesting another $12,000 to complete what was rather a complex project. White Bear Lake has a policy of getting between $2,500-5,000. They try to gauge the difficulty of the work, and normally anticipate a fee of somewhere between $7,500 and $12,500. That has been uniform for two years. Again, when White Bear Lake initiates a redevelopment project, they do not charge anything. He stated it varies considerably between communities and those that are into it more have developed more of a concern about some of their out-of-pocket costs. Mr. Prairie stated that since there seems to be some flexibility, he would agree to trying the policy. If it doesn't work, they can always change it. Mr. Commers asked what happens of a developer does not pay the fee . Mr. Casserly stated the HRA does not approve the project. What staff normally suggests when they prepare resolutions, the HRA direct that the resolutions not be delivered or executed until such time as the payment has been received. There is a letter that goes with the policy statement in which the applicant signs in which the applicant agrees to pay for these costs. � Ms. Schnabel stated the concept is good. The City charges its own residents fees for variances, special use permits, etc. So, ,.-.� HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 19. 1990 PAGE 5 it does not seem like a bad thing to charge a fee for other things that involve staff time. She was in agreement with the fees as outlined in the policy statement. MOTION by Mr. Rasmussen, seconded by Ms. Schnabel, to approve the proposed "Policy Statement Tax Increment Financing (TIF) Administrative Costs". IIPON A VOICE VOTE� ALL VOTING AYE� CHAIRPERBON COMMERB DECI,ARED THE MOTION CARRIED IINANIMOIISLY. Mr. Commers suggested staff set up a statement for each applicant for the next six months to see how it goes. Mr. Robertson stated Dick Bienapfl is representing ASPRE, Inc. Mr. Bienapfl has asked to have the HRA address their feelings about proceeding with further analysis of a project of this type. This is a very unique proposal and will require a lot of analytical work. Mr. Bienapfl stated the concept is basically that of attempting to utilize the existing the Section 8 housing in the City of Fridley, specifically, Village Green, in a sale mode that will result in that housing being maintained as low income housing for �, the life its contract and beyond that; at the same time, capturing some of the revenues from the project to produce as much as another 100 units of low income housing for the community as well. It is very complicated. They have been working with HUD, the Minnesota Housing Finance Agency, the owners of Village Green, and Mr. Robertson and various other staff inembers to see if this concept is something that makes some policy sense to the City of Fridley. They have been working with staff to try to identify some housing which is below standard, at risk, that, utilizing this overall concept they are proposing, will allow them to acquire and rehabilitate that housing and keep it on the marketplace at low and moderate income rates. Mr. Bienapfl stated he is just looking for some guidance from the HRA that says they are generally interested in looking at this proposal further. He has been told by Mr. Robertson that, due to various changes in staff and a heavy workload, it might be at least two months before they can pursue this with any vigor; however, there are a lot of things they can do during the next couple of months towards bringing a much more definitive proposal to the HRA. Mr. Robertson stated staff is also going to do a summary of this and present to the City Council in the near future to get the some reaction and policy direction from the Council. � Ms. Schnabel stated that several times it was stated in the information received in the agenda packet that there have been ^ HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 19. 1990 PAGE 6 numerous offers or there are people waiting to purchase Village Green. She had two questions: (1) Why isn't Village Green sold to an outside party other than the HRA and the money captured out of that sale and used for this type of project with the low and moderate income housing? (2) With the funding that the developer is looking to receive through HUD or any other agency, can they get that same financing without the HRA being involved? Mr. Bienapfl stated that the financing that would be utilized to acquire Village Green by the City is something that only the City or a nonprofit can do. It is not available to them as a private developer to obtain tax exempt financing of that type. The funds that would be captured from the sale of the project are not proceeds of the sale because the project is owned by a limited partnership who are not willing to sell unless they can achieve a reasonable return for the investment they have made. So, the proceeds of the sale would be going to the limited partnership and the sale would be basically a market rate sale. By the City or nonprofit acquiring the property, they are then assured that the property remains low and moderate income housing. Mr. Bienapfl stated they are working on this concept in Roseville, Mankato, Golden Valley, and Bloomington. As the HRA members know, there are not many programs available for low and �, moderate income housing. �� Mr. Casserly stated one of the threshold questions the HIZA has to concern itself is whether they wish to get into the housing business, even in the somewhat prescribed fashion this concept presents. This issue was before the HRA last fall when they were looking at some concepts for development on the southwest quadrant. One of those concepts was a very creative approach, but it required the HRA to become the owner. Mr. Bienapfl agreed that the HRA will have to consider whether they want to get into the housing business. It is just that the two concepts are somewhat different in that the housing that would owned by the City in this case would be Section 8 housing which has governmental backing where rents are pretty much assured; whereas the concept on the southwest quadrant was basically solely dependent on whether or not it rented. 5ection 8 housing has no problem renting. The City need not establish a full management staff. There are other ways to manage the property. Mr. Robertson that in Mr. Jim O'Meara's letter dated July 6, 1990, pages 5 and 6(agenda pages 2-E and 2-F), Mr. O'Meara points out some alternatives. He points out that if the Village Green is already paying tax increment (which it is), some of that is pledged toward retiring bonds and yet another way to do it is to simply amend the plans and use some of that increment, if available, for some kind of assistance. � HOUSING &__REDEVELOPMENT AUTHORITY MTG. JULY 19. 1990 PAGE 7 Mr. Herrick stated that what the HRA needs to do is tell the developer that they are not interested and do not wish to waste any more time or money, or they can tell the developer that they are willing to listen further, but they are not in any position to make any commitments because they do not know the answers to the number of legal questions nor do they know what the economics of the proposal are going to be. Ms. Schnabel stated it seemed the alternatives raised by Mr. O'Meara are things that would have to be answered first before the HRA can give the developer any indication of whether or not they are interested. Mr. Rasmussen stated he did not want to see the HRA get involved in owning housing. Mr. Casserly stated that if the HRA decides they want to be involved in trying to provide low and moderate income housing, there might be other ways to do it. This might be just one of several options the HRA might want to explore. Mr. Commers stated he did not see any problem in their looking at trying to retain some low and moderate income housing or rehab ^ some housing in the City of Fridley, but it is very low priority to him to be in the ownership of this housing. There are probably other ways to accomplish the same thing. Mr. Prairie stated he is willing to listen further, but the HRA's decision would depend on the findings and recommendations of staff. Ms. Schnabel stated she had mixed feelings about this proposal; she liked the concept of the rehab of existing housing. Mr. Meyer stated he is a pragmatist. He stated they should be doing something about the aging housing stock in the City of Fridley, and this is one tool that can accomplish that. It certainly will not cost the HRA anything to let the developer pursue this concept. It does not hurt to have another tool in the toolbox. Mr. Commers stated it seems to be the consensus of the HRA that they are willing to listen further to this concept; however, they are not comfortable enough that the developer should put up a great deal of money. The HRA is somewhat cautious about becoming a landlord or owner, but they are interested in trying to maintain this type of housing in the City of Fridley and develop further that kind of housing. �� Ms. Schnabel stated the loss of Section 8 housing would be a real loss to the City of Fridley in terms of the housing need. � HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 19. 1990 PAGE 8 Mr. Herrick stated it might be helpful for the HRA to have additional information on what other "tools" or options are available to the HRA. Maybe Mr. Robertson or Mr. Casserly can obtain that additional information for the HRA. Mr. Rasmussen agreed. He would like to have more information about other options. He stated he liked the Habitat for Humanity project and has personally contributed to that project. Mr. Commers asked staff to prepare for the HRA a brief description other programs that might be available to the HRA in order to maintain low and moderate income housing in the City of Fridley. Mr. Robertson stated they can do that in about two months. Mr. Robertson stated that if staff needs some consulting time to analyze this project either in the next 60 days or after that, is the HRA authorizing staff to implement the policy adopted and to ask ASPRE for $7,500 to defer any consulting expenses. Ms. Schnabel stated that since the HRA has adopted the Policy Statement to defer administrative costs, they should start /�'� implementing it. However, she would have no objection to reducing the amount in this situation. The HRA members agreed. Mr. Commers asked staff to get some estimate of the consulting cost and time that might be needed from Mr. O'Meara. Mr. Robertson stated it is staff's intent to make any analysis as cost efficient and time-limited as possible. 3. REQUEST FOR TIF ASSISTANCE TO FRIDLEY AUTO/SERVICE MALL• Mr. Robertson stated Mr. Alvan Schrader is proposing to construct a 26,300 sq. ft. auto/service mall and a 4,000 sq. ft. full service restaurant at 73 1/2 Avenue and Highway 65. The property will need to be rezoned from M-1, Heavy Industrial, to C-3, General Shopping District, and a special use permit will be needed for automotive uses in a C-3 district. Mr. Robertson stated the proposal will require the purchase of 36,000 sq. ft. from Royal Electric, and about 20,000 sq. ft. of City-owned land. At this time, the City Council is not interested in selling the land. John Flora, Public Works Director, has stated that this land is one of two possible sites �, for another City well and treatment plant. � HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 19. 1990 PAGE 9 Mr. Robertson stated the Council members were polled on this proposal, and they were not particularly positive about recommending tax increment assistance for this project. He had informally polled the HRA last month and had received the same reaction. Mr. Schrader has asked that they be able to make a formal presentation to the HRA, and Mr. Mike Schrader and Mr. Paul Noyes are representing the applicants. Mr. Robertson stated that the City Council has asked the HRA, whenever they can, to consider a pay-as-you-go type of grant. Giving preliminary infornaation from the developer, Leon Madsen, City Assessor, has estimated a market value of $1.7 million. If the HRA wishes to proceed, staff recommends a 2-3 year pay-as- you-go grant of an amount yet to be negotiated. Based on an estimated market value of $1.7 million, the pay-as-you-go grant would range from $85,000-136,000 following the 5-8% precedent for Northco. Mr. Mike Schrader stated they are at the meeting to try to obtain a final determination as to the HRA's interest in the tax increment financing as described by Mr. Robertson. The land will be assembled through a purchase of 36,000 sq. ft. from Royal Electric, and there has been some dialogue with the City regarding the City-owned land. They do have an option on the �"'• Royal Electric property, but there are issues regarding possible municipal waterworks on the City-owned property that will have to be addressed by the City Council. Mr. Schrader stated the outstanding portions are owned by his father, Alvan Schrader, the developer. This property was previously used as a retail mobile home sales center until about three years ago. There were several model homes on the lot and a permanent office that have since been removed, so it is now vacant land. Mr. Schrader stated the subject site is in a redevelopment district within the tax increment program, and they have asked for a preliminary type of review from the HRA in order to determine how they can move forward. He stated they feel the 26,000 sq. ft. auto/service mall (of which there are 8 others in the Twin Cities metropolitan area) and free-standing restaurant is within the designated use for the redevelopment area. It will also provide an opportunity for the City of Fridley to diminish the number of stop/shop type of service repair stations in the City and, at the same time, give the developer to the opportunity to have a auto/service mall that will have top rate service of automobiles and light trucks. They have incorporated into this mall the best items, in terms of landscaping, design, and the restaurant, from the other eight existing auto/service malls in ,...\ the metropolitan area. As far as other uses that could go on this property, this auto/service mall represents the highest and best use of the property. ^ HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 19. 1990 PAGE 10 Mr. Schrader stated that as far as tax benefits to the City, this development would give the City the opportunity to greatly raise the tax return on this land which is approximately $9,000/year now to upwards of $100,000/year and establish a precedent in the area which is surrounded by junkyards, light industrial, and a mobile home park. The mall will provide approximately 200 additional jobs for the City. Mr. Schrader stated they have letters of intent for 10,000 sq. ft. of space and will have letters of intent for another 12,000 sq. ft. in the next 10 days. The restaurant will probably be a Denny's Restaurant or Country Kitchen. Mr. Rasmussen stated he certainly liked the proposal. It would be one of its kind in the Fridley area. Mr. Commers stated the HRA has to answer the questions of whether or not they want a continual proliferation of strip malls and whether they should give assistance to these kinds of developments. (Mr. Prairie left the meeting at 9:00 p.m.) �``� Ms. Schnabel stated that if this concept is approved and the mall built for an auto services type of development, would that limit the usage of that development to different type of tenants in the future? Mr. Schrader stated it would be somewhat limited. It is a specialized mall; however, most of the build-out is on the interior. Ideally, these tenant spaces are structured on long term, triple-net leases, whereby the tenants are committing themselves and understanding that the spaces are accommodated to their use and this is a long term relationship. They have had excellent response regarding the site from national companies who review sites all over the country. The developer is very conservative in nature and would not proceed if he were not confident that the leasing will continue at the rate it is and that they will be able to obtain the preleasing necessary to obtain financing. Mr. Robertson asked Mr. Schrader how critical it is for their business to have the frontage road extended to the north to Viron Road. It is an area which the City has told Mr. Noyes and Mr. Schrader that they will have to take the initiative if they wish to pursue that right-of-way. Mr. Schrader stated the frontage road stops at the mobile home � park between Viron Road and the subject property. They have been marketing the project with the frontage road as it exists. If the frontage road was extended to Viron Road, it would greatly �., HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 19. 1990 PAGE 11 enhance their project as far as the traffic level; however, they are not in any position to deal with the present landowner to initiate eminent domain proceedings. It is an issue that will be discussed with the City Council. Mr. Herrick asked if the developer has approached the owners of the mobile home park about the owners' willingness to sell the right-of-way for the extension of the service road. Mr. Schrader stated, yes, they have approached the owners and have made several offers to purchase, but the owners are unwilling to sell. Ms. Schnabel asked what happens if the City does not sell its property to Mr. Schrader. Mr. Schrader stated that piece of property is a key to the auto/service mall because it takes the space where the restaurant would be located. It is an important issue that will have to be discussed with the City Council. Mr. Meyer stated the objections he had to the Fridley Town Square proposal on the 10,000 Auto Parts site are not present in this proposal. Those objections were traffic problems, the potential n danger to the residential neighborhood, and the prevalence of strip shopping malls. He stated he thought the auto/service mall was an interesting development. Ms. Schnabel stated it is hard for the HRA to proceed until they know what the City Council is going to do. She did not have any real problems with the concept. She did like the restaurant as part of the development as it seemed to enhance the development. Mr. Rasmussen stated he is willing to listen in terms of tax increment financing if the developer is able to proceed with the project. Mr. Meyer stated he was also. Mr. Commers stated that irrespective of the Council's indication, it appears that the HRA is willing to look at the project if the developer is able to put the project together. The HRA is not indicating a rejection out of hand, and they are willing to look at it if the Council approves it. 4. RESOLUTION APPROVING AMENDMENTS TO REDEVELOPMENT PROJECT AND TIF DISTRICT PLANS: Mr. Robertson stated that at the April 18, 1990, meeting the HRA � recommended the City approve the specific development plan and proceed with giving notice for a public hearing to consider expanding the redevelopment area by creating TIF District No. 11 �� � HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 19 1990 PAGE 12 for the two easterly lots of the proposed development by Fridley Town Square Associates. The City Council established July 23, 1990, as the public hearing date for considering this action. Mr. Robertson stated staff recommends that the HRA adopt the resolution approving the Amendments subject to City Council approval on July 23, 1990. MOTION by Mr. Rasmussen, seconded by Ms. Schnabel, to approve Resolution No. HRA 5-1990, Resolution Approving Redevelopment Project and Tax Increment Financing District Plans, subject to City Council approval on July 23, 1990. IIPON A VOICE VOTE, ALL VOTING AYE, CBAIRPERBON COMMERS DECLAR�D THE MOTION CARRIED IINANIMOIIBLY. 5. ESTIMATES• a. Talberg Lawn and Landscape (Lake Pointe Maintenance) MOTION by Mr. Rasmussen, seconded by Ms. Schnabel, to approve a payment in the amount of $4,458.22 to Talberg Lawn and Landscape. IIPOPT A VOICE VOTE, ALL VOTING AYE, CHAIRPERBON COMMERB DECLARED THE MOTION CARRIED IINANIMOIIBLY. 6. CLAIMS: a. Billing for Operating Expenses and Second Quarter Administrative Expenses Mr. Robertson stated that in 1990, the City switched from keeping track of administrative expenses on an hourly basis charged to the various HRA projects to a budgeting system where the City used a base year experience allocation. Because there was some confusion on the part of the HRA members regarding the change in the new budgeting system for administrative expenses, staff was asked to better explain the change at the next meeting. MOTION by Mr. Rasmussen, seconded by Mr. Meyer, to approve the Billing for Operating Expenses and Second Quarter Administrative Expenses as presented by staff. IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPER80N COMMERB DECLARED THE MOTION CARRIED IINANIMOIISLY. �"',, b. Check Register (2027-2040) � HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 19. 1990 PAGE 13 MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the check register dated July 19, 1990. IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERBON COMMERB DLCLARED THE MOTION CARRIED IINANIMOIISLY. 7. MOORE LAKE COMMONS REPLAT: Mr. Robertson stated this is an informational item. Included in the agenda packet was a memo from John Flora dated June 29, 1990, e�laining the Moore Lake Commons Area Replat. Mr. Robertson stated S.E.H. was the engineer hired to lay out East Moore Lake Drive. In a memo to William Burns dated June 28, 1990, from Jock Robertson, Barbara Dacy, and Clyde Moravetz (agenda page 7A, paragraph 3), it states that approximately $6,700 is required to replat the property. Of that amount, $2,000 is what will be paid by the City as opposed to the developer. That is based on the percentage that they originally paid for the improvement of East Moore Lake Drive (old Rice Creek Road). The HRA�s portion of the $2,000 is $400. It is not clear that the HRA can recover that amount from S.E.H. Mr. Flora states in his memo of June 29, 1990 (agenda page 7) that it is unclear whether it is S.E.H.'s mistake. It might have been part ^ MnDOT's fault when MnDOT changed some design standards. Mr. Commers asked if the City can bill S.E.H. Mr. Herrick stated they could make some effort to try to collect the $2,000 from S.E.H. He will discuss this with John Flora. 8. TIF DISTRICT NO. 11 STATUS: Mr. Robertson stated this is also an information item. Mr. Robertson stated that he talked to Tom Schutte, Fridley Town Square Associates, on Tuesday evening, July 17. Mr. Schutte stated that Walgreen Drug in Chicago is now delaying making a financing commitment to this project. Walgreen does not want to make a decision until August. Fridley Town Square Associates has said it is urgent that Walgreen make a decision yet this week. Mr. Robertson stated that there is the possibility that this project may not go forward; therefore, staff is recommending that the City Council hold the public hearing on Monday, July 23, but carry forward any action on the resolution adopting Tax Increment District until they receive a financing commitment from Walgreen. 9. EXPERIENCE OF OTHER HRA'S WITH ASSISTANCE STATUS SIMILAR TO � PAPPY'S FOODS• � HOUSING_& REDEVELOPMENT AUTHORITY MTG. JULY 19. 1990 PAGE 14 Mr. Robertson stated that in the agenda (agenda pages 9 and 9-A) is a letter dated July 1, 1990, from Jim Casserly and Mary Molzahn regarding ��Financial Assistance to Pappy�s Food Company". This is information requested by the HRA. 10. 57TH PLACE CLEAN-UP STATUS: Mr. Robertson stated it appears that the letter from the MPCA specifying the clean-up procedure will be sent to Rapid Oil within a month. The HRA will receive a copy of that letter. They can expect Rapid Oil to come then come back to the City Council asking for action on their permit application for =ezoning and special use permit to expand the present station. At that point, the HRA will have to make a decision on the Winfield development proposal which was put on the table 1 1/2 years ago. Winfield has told staff that they are ready to proceed and will proceed to get a financing commitment. Mr. Robertson stated HRA members have asked the question: How would this 57th Place development proposal fit in with overall redevelopment plans for the Gateway area. He stated staff has prepared internally a Gateway Redevelopment Plan which shows 57th Place as the first of several stages for both sides of University Avenue and both sides of 57th Street. The Council will review �"� the plan on July 30 and the HRA will review it at the August 9, 1990, meeting. ADJOURNMENT• MOTION by Ms. Schnabel, seconded by Mr. Meyer, to adjourn the meeting. IIpon a voice vote, all votinq aye, Chairperson Commers declared the July 19, 1990, Housinq and Redevelopment Authority meetinq adjourned at 10:00 p.m. Respectively submitted, Lynn Saba Recording Secretary �