HRA 06/27/1991 - 29622CITY OF FRIDLEY
HOIISING & REDEVELOPMENT AIITHORITY MEETING, JIINE 27, 1991
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CALL TO ORDER•
Chairperson Larry Commers called the June 27, 1991, Housing &
Redevelopment Authority meeting to order at 7:30 p.m.
ROLL CALL:
Members Present: Larry Commers, Duane Prairie, John Meyer
Members Absent: Virginia Schnabel, Jim McFarland
Others Present: William Burns, Executive Director of HRA
Barbara Dacy, Community Development Director
Jim Casserly, Consultant
Rick Pribyl, Finance Director
Jim Hoeft, HRA Attorney
Mike Hurley, 12230 Maryland Circle
Charles Grootwassink, 3601 Minnesota Dr.,
Minneapolis
Rodger Nystrom, 3200 Main St., Coon Rapids
Tony Krejci, 6401 University Ave. N.E.
�^� Jack Lemley, Rapid Oil
Don & Judy Fitch, 280 Mississippi St. -
Dairy Queen
APPROVAL OF MAY 9, 1991, HOUSING & REDEVELOPMENT AUTHORITY MINUTES•
MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve the May
9, 1991, Housing & Redevelopment Authority minutes as written.
IIPON A VOICE VOTE� ALL VOTING AYE, CHAIRPERSON COMMER3 DECLARED
T8E MOTION CARRIED IINANIMOIIBLY.
APPROVAL OF AGENDA:
Chairperson Commers stated that agenda item 1 would be continued
until later in the agenda, and that agenda items 2, 3, and 4 would
be discussed first.
1. CONSIDER APPLICATION FOR TAX INCREMENT FINANCING ASSISTANCE
FOR CUB FOODS SITE:
Ms. Dacy stated the developer is proposing to rehabilitate the
existing 34, 000 sq. ft. Cub Foods building into three retail spaces
that will have 26,000 sq. ft. of retail, 8,000 sq. ft. of storage
space. The petitioner has a signed lease with Pet Food Warehouse
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,,� HOUSING & REDEVELOPMLNT AIITHORITY MTG., JIINE 27, 1991 PAGE 2
which will be the major tenant. It is staff's understanding that
proposed is a 5 year lease with an option for a 5 year renewal.
The petitioner has a strong interest from Stone Fabric, leaving one
remaining tenant space.
Ms. Dacy stated the petitioner has indicated a total project cost
of $477,958. What is being proposed is that the owners will
provide $200,000 of their own money plus another $200,000 will be
secured with Northeast State Bank as part of the first mortgage.
As part of that arrangement, the bank is also requesting that a
certificate of deposit in the form of $50,000 also be retained.
Ms. Dacy stated that at the May HRA meeting, the developer was
proposing a combination grant and second mortgage or loan.
However, in the last 2-3 days, staff has put together another
option for the HRA to consider, and that is the pay-as-you-go
option. So, the HRA has two options to discuss: (1) a$15,000
grant and $50,000 second mortgage as proposed terms of 10 years at
90; or (2) staff has worked with the developer to investigate with
Northeast State Bank, that the bank would loan them an additional
$65,000, but the HRA's development contract could say that the HRA
will reimburse the developer after the HRA has seen increments up
to cap of $65,000; or, if that cap is not reached within the first
set of tax payable years, they will just receive that amount of
increment back for 7 years.
Ms. Dacy stated that as far as the'tax increment district is
concerned, it would be a redevelopment district with a life of 25
years. Based on just the Cub Foods site alone, it could generate
about $224,000 in 25 years. That means annual tax increment
receipts of about $9,000, assuming a minimum of $200,000 increase
in value.
Ms. Dacy stated that as far as the HRA's investment, the HRA could
recover the loan and grant of $65,000 in 7 years; or, with the pay-
as-you go option, the HRA would recover its investment in 7 years.
Ms. Dacy stated staff is asking the HRA to consider this financing
assistance proposal. If the HRA agrees with the proposal, they
should direct staff to enter into development contract negotiations
with the developer, and the development contract would then come
back for approval by the HRA.
Ms. Dacy stated that for the past month, Mr. Burns and she have
worked with the developer, and they have looked at cash flow
statements of Pet Food Warehouse. They have looked at the
financing terms the developer has with Northeast State Bank. They
have investigated a lot of alternatives. To help the HRA review
this particular proposal, staff was asked to put together a list
,-�
of pros and cons:
HOIISING & REDEVELOPMENT AIITHORITY MTG., JIINE 27, 1991 PAGE 3
Pros
1. Redevelopment of the Cub Foods site will increase the
property values.
2. It will improve the structural quality of the building
to meet building codes and the general appearance of the
structure.
3. It will provide for additional employment opportunities.
4. It makes good use of the existing building.
5. The land use and proposed plan meet Code requirements.
No variances are being requested.
6. The HRA has at least two options to look at in terms of
assisting the project. , .
Cons
1. Tenant cash flow of $1,200
2. Lost L.G.A. estimated at $1,200, translates into a
� present value of $640.
3. Discretionary funds will have to be used if loan and
grant option is chosen.
4. Sophistication
Mr. Burns stated that although the present value of the HRA's
contribution for the alternative option (pay-as-you-go) is higher,
he thought the risk is less. Under that option, they are less
concerned with the credit rating of the tenants or the development
proposal itself. He is in favor of the second option. Apparently,
both the project owners and the bari'k, at this time, seem willing
to go with either option. Northeast State Bank's loan committee
will be meeting the following week, and there will be no final word
on the second option until the committee meets.
Mr. Mike Hurley stated that they are amenable to either option.
The only concern he has in regard to the second option is that if,
in fact, Northeast State Bank does not agree to advance the
additional $65,000, then the second option is gone and they would
not have the additional funds to make the project go. He feels
confident that will happen, but the decision is up to a loan
committee of 5-6 different bankers. It is not so much a security
issue, but more the fact that the bank would be lending money
against real estate. He stated he wanted the HRA to not dismiss
the grant/second mortgage option because they might have to go with
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HOIISING & REDEVELOPMENT AIITHORITY MTG.� JIINE 27, 1991 PAGE 4
that option if Northeast State Bank does not adopt the pay-as-you-
go option.
Mr. Meyer asked about the developer's timeframe.
Mr. Hurley stated that they have committed August 1 for Pet Food
Warehouse, but may be able to extend that to August 15. The second
tenant, Stone Fabrics, has told them emphatically that if they
cannot occupy the building by August 15, they will not lease the
space.
Mr. Burns stated staff will have to draft a development agreement
that must come back for HRA approval. He stated he thought it is
possible to keep the options open at this time.
Mr. Commers stated that if they go with the grant/second mortgage
option, they have to tighten it up and make some additional
changes. Because of the problems they have been having with second
mortgages, the HRA should get the same thing the bank does in terms
of personal guarantees.
MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve the
concept in principle with respect to tax increment financing
assistance to the developer of the Cub Food property.
IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED IINANIMOIISLY.
Mr. Casserly stated that the issue of security with regard to the
second mortgage as mentioned by Mr. Commers has been discussed,
and they would want no more or no less than what the lending
institutions ask for in terms of personal guarantees.
2. REVIEW APPROVAL AND ADOPTION OF EXPANSION OF REDEVELOPMENT
PROJECT AREA AND CREATION OF TIF DISTRICT #11:
Mr. Commers asked staff to explain the budget for Tax Increment
Financing District No. 11 (University Avenue/Osborne Site) as
reflected on pages 3.14 and 3.15 of the agenda.
Ms. Casserly stated that at the May HRA meeting, they talked about
the idea of putting together a little larger site than just the Cub
Foods site. They are proposing taking three parcels north of
Osborne Road, which contain the Bob's Produce property. The reason
for that is because Cub Foods and the three parcels allow them to
create a redevelopment project. So, this is strictly a conceptual
budget. All they are trying to do is identify the kinds of things
they can spend money on and the absolute outside amounts. It is
not a commitment that any of this money will be spent.
Mr. Commers stated he is very concerned about these costs. He is
concerned about putting down numbers that could be misunderstood
� HOIISING & REDEVELOPMENT AIITHORITY MTG.. JIINE 27. 1991 PAGE 5
in a few years. He wanted to know what these numbers are based on,
why they are being put down, where these numbers aome from; and if,
in fact, they are just conceptual numbers, they should be
identified as such.
Mr. Casserly stated most of the numbers come from two separate
analyses that were done on the Bob's Produce site. They have taken
the gross numbers, acquisition costs, demolition cost estimates,
etc. This is truly just a plan; there is not any proposed project.
By incorporating this budget now, they are saving some thousands
of dollars if the HRA ever wishes to proceed to do anything.
Mr. Casserly stated that if they created two districts, they would
only be able to take 25% from each district. By making the
districts one, what is happening is that they have excess increment
south of Osborne Road. If they wish to use that excess increment
for activities north of Osborne Road, they would have that option
available; and they could use 100% of the increment, not just 25%
of the increment. That is what is being achieved by combining the
two sites into one district. They can move within the district
100% of the increment. As it relates to all the rest of the
districts, whether 1, 2, or 3, they could only move 25% of the
increment. That will only be true of this district at this time
because the law was changed effective May 1, 1990.
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Mr. Prairie questioned why the University Station restaurant and
the two parcels north of the restaurant, 7700 and 7710 University
Avenue, were not included in the tax increment district.
Ms. Dacy stated the restaurant would be eligible because the
building could be termed substandard. She stated staff was trying
to be as conservative as possible and minimize the amount of land
within the tax increment district. No contact was made with the
o�mer of the restaurant. The restaurant could altiaays be added to
the project area at a later date. The other two properties are
ABRA Auto Body and Kennedy Transmission. They are fairly new
buildings, and she did not think they should be part of the
district.
Mr. Commers stated the biggest prob�lem is the restaurant because
of the condition of the building.
Mr. Casserly stated the restaurant could certainly be included.
It is too late now because the notices for the public hearing have
already been published for the public hearing at the Council on
Monday, July 1, 1991. But, the tax increment district itself could
be expanded to incorporate that property, because it would meet the
redevelopment criteria. That could be done at a subsequent
meeting.
`�� Mr. Commers stated he did not have a copy of Exhibit XII-E which
reflects the impact this tax increment district would have on the
� 80IISING & REDEVELOPMENT AIITHORITY MTG., JIINE 27, 1991 PAGE 6
school districts. He stated that in Exhibit XII-D, "But For"
Analysis, the third paragraph states: "Other buildings in the Tax
Increment Financing District will be replaced with larger
structures providing additional employment and market valuation."
Mr. Commers stated it just seems that something more is taking
place that they do not know about.
Mr. Casserly stated that if there is a real concern with combining
the districts, the HRA can reduce the size of the district and he
would draft resolutions to that effect. However, all staff has
tried to do is be helpful. The Cub Food property really qualifies
as a redevelopment site by itself, and the other properties do not
qualify as a redevelopment site. The other properties only qualify
as a renewal and renovation district. By taking all four parcels,
they can get the longer district and it gives the HRA more options.
Ms. Dacy stated that the HRA always has the option to decertify if
Bob's Produce does not come in with a proposal.
MOTION by Mr. Meyer, seconded by Mr. Prairie, to approve Resolution
No. 4, 1991, "A Resolution Modifying the Redevelopment Plan for
Redevelopment Project No. 1 and Modifying the Tax Increment
Finanaing Plans for Tax Increment Financing Districts No. 1 through
� No. 10 to Reflect Increased Project Costs and Increased Geographic
Area within Redevelopment Project ATo. 1; and Establishing Proposed
Tax Increment Financing District No. 11 and Approving and Adopting
the Proposed Tax Increment Financing Plan Relating Thereto.
IIPON A VOICE VOTE� ALL VOTING AYE� CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED IINANIMOIISLY.
Ms. Dacy stated she would get the information regarding the school
districts to Mr. Commers.
3. DISCUSS STATUS OF RAPID OIL SITE:
Mr. Burns stated that Ashland Oil is requesting a rezoning and
special use permit at the City Council on Monday, July 1, 1991.
The question before the HRA is: Does the HRA want to recommend
that the City Council proceed with these land use applications, or
does the HRA want to begin the condemnation process on this
property to establish a redevelopment district?
Mr. Burns reviewed the facts that he had presented at the last
meeting regarding soil contamination and remediation, the value of
the Rapid Oil facility, economics of:the Winfield project, the pros
and cons of the landbanking issue, and the environmental issue.
Mr. Burns stated that if the HRA allows Ashland Oil to construct
�� a new Rapid Oil facility and add another $200,000-300,000, if the
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HOIIBING & REDEVELOPMLNT AIITHORITY MTG.. JIINE 27, 1991 PAGE 7
HRA should choose to acquire the property in the future, the
project becomes even more expensive.
Mr. Burns stated that the City is now looking north of the Rapid
Oil property where there is blighted commercial property that has
been looked at in preliminary terms for potential residential
redevelopment. When they convert from commercial to residential,
the tax increment situation is even more difficult. Realizing
that, if they do not condemn and allow Ashland Oil to construct a
new facility, they are making that situation worse. When Mr.
Casserly ran some preliminary numbers 6-8 months ago, they were
looking at a Gateway project that was going to have a net cost of
between $2-3,000,000.
Mr. Burns stated the City does not have any project for this
property anymore. There is not a Winfield project, and there is
no housing redevelopment project on line right now. So, it is not
easy to tell the HRA to condemn the property and put the property
aside for some project in the future. Nevertheless, as he has
considered the facts and the pros and cons, particularly at the
additional cost of buying a brand new Ashland Oil facility, he has
to recommend condemnation. Also, his recommendation hinges on the
sense of urgency the Council has attached to the proposed Gateway
redevelopment project and the sense of disapproval to the
� development of automotive uses along University Avenue.
Mr. Burns stated the State Legislature has passed some legislation
that helps to indemnify the HRA and any future investors in this
property against losses they might face as a result of the soil
remediation. He asked Mr. Casserly to comment on what has happened
at the State Legislature.
Mr. Casserly stated the State Legislature passed two laws last
session to help HRA's in dealing with contaminated property. One
law stated that the HRA can do an environmental assessment prior
to the time it initiates condemnation. That same law says that if
requested by any party, the Commissioners shall make a finding of
the estimated costs of removal and�remedial actions that will be
necessary on the property being taken because of the existing
contamination. What that means is that they have to make an
assessment, if requested to do so by the HRA, and that amount is
taken into consideration in determination of an award.
Mr. Commers asked if, under this law, the HRA would be responsible
for the cleanup.
Mr. Casserly stated that if the HRA acquires the property, then
they become the ones responsible for the cleanup. That does not
eliminate the previous party's responsibility. The Attorney
General has been very specific to point out on a number of
�`` occasions that this law is supposedly not a new law, but an honest
restatement of an existing law to make things more clear.
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80II8ING & REDEVELOPMENT AIITHORITY MTG., JIINE 27, 1991 PAGE 8
Mr. Meyer asked if a new Rapid Oil facility would jeopardize any
redevelopment plans north of this site along University Avenue?
Ms. Dacy stated that the Rapid Oil site is about 20, 000 sq. ft.
That would leave about 1 1/2 acres left. To redevelop that 2 acre
site might be difficult as far as what type of development because
of the creation of an L-shaped parcel.
Mr. Jack Lemley, Ashland Oil, stated he has not heard any mention
by staff of the LRT (Light Rail Tra�sit). They are considering a
passenger station at either the Rapid Oil location or the
SuperAmerica location across the street. He would also like to
point out that staff has recommended the zoning change and the
special use permit. He stated Ashland Oil has been more than fair
in waiting for their rezoning and special use permit requests for
two years. The site is an eyesore right now, but they want to
clean it up.
Mr. Lemley stated he has been asked the question: If the Rapid
Oil location was cut out from the rest of the area and the street
next to them was closed, would they still be able to operate? He
stated, yes, they can, as long as they have enough radius to get
around the building.
Mr. Commers stated that this is a very difficult issue. He agreed
with Mr. Burns that the environmental issue and the landbanking
issue should be kept separate.
Mr. Meyer stated he is losing some �onfidence that this parcel is
useful for anything other than a Rapid'Oil site. There have been
other developers who wanted the site, but now they are no longer
around. There are vacant businesses all up and down University
Avenue. Should the HRA make the decision to acquire the Rapid Oil
site as part of a total goal that seems to be even farther and
farther away than before?
Ms. Dacy stated that as far as park and ride sites for the LRT,
the Anoka County Regional Rail Authority would prefer to have a
station at 53rd Avenue and south of 57th Avenue where the
SuperAmerica Station and Motor Valet are located. That is an issue
the City is going to have to address in the next six months.
Mr. Meyer stated it is his opinion that they should not hold up
any kind of plans on University Avenue because of the advent of
the LRT. LRT is many years in the future.
Mr. Commers agreed with Mr. Meyer.
Mr. Prairie stated his concern is what affect, whether they acquire
the Rapid Oil property or not, this is going to have on their
� HOIISING & RTsDEVELOPMENT AIITHORITY MTG., JIINE 27, 1991 PAGE 9
developing the University Avenue corridor north of the Rapid Oil
site.
Mr. Commers
and capture
development
corner.
stated one suggestion would be to create a TIF there
the increment that could then be used in the
of the other properties. Then, Rapid Oil is on the
Mr. Commers stated the bigger issue here is the issue of what the
HRA does in terms of taking the Rapid Oil property without any
projects on line, landbanking, etc., even though it is the HRA's
goal to do some redevelopment in this area. The HRA has discussed
the University Gateway in terms of priority, but there are just so
many other things the HRA is involved in at this time. It would
be an easier decision if there was a developer for a project. He
stated he has mixed feelings either way. At the last meeting, both
Mr. Prairie and Ms. Schnabel had reservations about acquiring the
Rapid Oil property. �
Mr. Prairie stated he believed the likelihood of any developers
coming forward with a project at this time are much slimmer than
in the last couple of years.
Mr. Meyer stated the decision would be much easier if the Rapid
� oil property was the only eyesore along University Avenue, but
there are many deteriorating properties along University Avenue.
He is also concerned about the landbanking issue and any potential
landbanking that the HRA might have to be doing before they are
through.
MOTION by Mr. Prairie, seconded by Mr. Meyer, that the Rapid Oil
property not be acquired through condemnation.
IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERBON COMMERS DECLARED
THE MOTION CARRIED IINANIMOIISLY.
Mr. Commers thanked Mr. Burns for the time he and staff have put
into this item. It is not easy for the HRA to not follow staff's
recommendation.
Mr. Casserly suggested the following: (1) Most of the work that
has been done by staff is looking at what kind of districts
qualify. It might be worth reviewing that again, because the HRA
may still wish to create a district because of the eligibility of
the kind of district that that allows before a permit is issued.
(2j This does not prohibit the HRA in the future from acquiring
the Rapid Oil site if there is a master project. The site would
just be more expensive.
Mr. Commers stated he agreed with Mr. Casserly's first suggestion.
�� He stated he still has a lot of questions about the contamination
and cleanup of the site, who is going to pay for it, and when.
n HOIISING & REDEVELOPMENT AIITHORITY MTG., JONE 27, 1991 PAGE 10
^
Mr. Lemley stated that if the site is not under condemnation and
they get the permits they are requesting from the City, they are
going to clean up the property. They do not have a final design
on the final cleanup, because they have been waiting to see if they
were going to get the necessary permits from the City. Their next
step is the City Council on Monday, July 1, 1991, for the rezoning
change and the special use permit. When they get those permits,
they will put together the final design for the cleanup. They hope
to start building as soon as they can.
Ms. Dacy stated the MPCA has approved a preliminary remediation
plan for the groundwater pumping and soil cleanup.
4. CONSIDER REOUEST BY DR. MICHAEL PARK TO FORGIVE A PORTION OF
THE SECOND MORTGAGE ON THE FRIDLEY PLAZA OFFICE BUILDING:
Mr. Burns stated that the City has received two letters from Dr.
Park's real estate representative, Tony Krejci, dated May 7, 1991,
and May 14, 1991. In the May 7th letter, Mr. Krejci asked the HRA
to forgive about three-fourths of the second mortgage which is
almost $40,000, and of that, he offered to settle with the HRA for
$10,000. In the May 14th letter, Mr. Krejci asked the HRA to
revise the real estate taxes on the building.
Mr. Burns stated he has received two recommendations from Virgil
Herrick and his legal staff: �
1. The HRA decline to revise the taxes. The taxes are
guaranteed as part of the development agreement on this
property. The tax quarantee is carried on to successors
and assigns and the HRA's position should be defensible
in court.
2. On the second mortgage issue, Dr. Park has not yet
foreclosed. He is the mortgage holder, but not yet the
owner. There is time for the HRA to consider this and
the HRA is advised to not take any immediate action.
Mr. Hoeft stated Dr. Park is the new mortgagee of the property and
apparently has purchased the mortgage and the mortgage note, but
has not received in a traditional sense the deed for transfer of
the property. If Dr. Park is to choose to foreclose on the
mortgage and pursue that avenue, obviously there is still a time-
frame under which the HRA can operat'e atnd make some decisions. As
far as the request for the $10,000 to pay off a$40,000 mortgage,
the HRA can either accept that, not do anything, or perhaps enter
into further negotiations with Dr. Park.
Mr. Commers asked if the HRA has any kind of promissory note from
� anyone that goes with that mortgage.
� 80II8ING & REDEVELOPMENT AIITHORITY MTG., JUNB 27, 1991 PAGE 11
Mr. Hoeft stated he cannot give the HRA an answer on that question
right now.
Mr. Tony Krejci stated he was invol've� with the transactions for
the sale and he has worked with the former owner, Jack Brandt.
They have had a lot of deficits and a lot of outstanding bills with
the former owner. When Dr. Park purchased the building, he paid
over $200,000 in back taxes plus an additional $39,000 that was due
on May 15, 1991. He is also putting $125,000 into the building in
terms of tenant improvements and upgrading the building. Right
now, they have a 90% leased-up rate, plus the fact that Dr. Park
has spent "x" amount of dollars in upgrading the other building in
addition to the tenant improvements.
Mr. Krejci stated they did have one outstanding lien with a former
creditor with Jack Brandt which was $8,500. He negotiated a
settlement for $2,500, and there was also a negotiation of $10,000
with the Fridley HRA for the parking lot.
Mr. Krejci stated he has been asked to see if there is some kind
of arrangement that can be worked out with the City on the second
mortgage. This is the final hurdle to try to work around the
$40,000 deficit. He was given a figu�e of $10,000 to try to get
the issue resolved. Dr. Park is trying to sustain a good rapport
^ with the City by negotiating these problems.
Mr. Commers stated he would like staff to get a complete history
on the building and the HRA can discuss this again at the next
meeting.
Mr. Hoeft stated he thought they can all agree that some positive
action is nice to see; but, by the same token, he would remind the
HRA that this building was not "purchased" in a vacuum. The
purchaser knew the situation when he purchased the building.
Mr. Burns stated another thing for the HRA to keep in mind is the
precedent that a revision of taxes would set for the future.
Mr. Commers stated he did not think that legally they can consider
revising or reducing the taxes.
Mr. Hoeft stated if that if anyone is going to reduce those taxes,
he would recommend that a court do that on a voluntary basis.
Mr. Krejci stated the issue of the taxes was brought to Dr. Park's
attention when he looked at another comparable building, the
Commerce Building, for sale in the City. The taxes on the Fridley
Plaza Office building are $79, 566.16 per year at 30, 700 sq. ft.
(with parking lot lease as additional cost, only footprint
ownership}, and the taxes on the Commerce Building square footage
^ is $39,806.96 per year at 26,000 sq. ft. and they own the land.
Dr. Park is asking why his taxes are so high compared to another
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HOIIBING & REDEVELOPMENT AIITHORITY MTG., JIINE 27. 1991 PAGB 12
comparable property. He stated he has discussed this with the City
Assessor, and the Assessor has no idea why the taxes are so high.
Mr. Commers thanked Mr. Krejci for coming and stated that this item
will be discussed further at the next meeting.
5. REQUEST BY DON FITCH. FRIDLEY DAIRY UEEN:
Mr. Fitch thanked the HRA and staff for allowing him to speak to
the HRA before the final date of the condemnation takeover.
Mr. Fitch stated the offer as part of condemnation is $125,000, of
which he is not totally in agreement. While he has not gotten a
formal appraisal, he did order one. He made a counter-offer to
City staff of $175,000, plus moving expenses. He reached that
figure as follows:
1. Comparable site locations for his purchase within the
City limits within his acceptable franchise area;
2. Knowing the fair market value of his business.
Mr. Fitch stated his family has owned the Fridley Dairy Queen for
over 25 years. They want to continue to operate a Dairy Queen in
�-•� Fridley, and he believed the Fridley community wants them to stay
in Fridley. He would like to move to the Fridley Town Square
project. He would prefer to odun his own property, but that seems
to be cost-prohibitive at this time.
Mr. Fitch stated he does not want to end up in court with the City
if he can avoid it. He would like to move to the Fridley Town
Square development. Staff would like that, and the developer would
like that. One of the stipulations he is trying to work out with
the City and the developer is for him to maintain his Dairy Queen
logo signage on a pylon sign. Whether it be part of the Walgreen's
pylon, part of the Fridley Town Square pylon, or a separate pylon,
he would like to maintain the Dairy Queen logo to help identify his
business in that development. He would like the HRA to favorably
consider making a recommendation to the Council that if he is to
move into Fridley Town Square, a potential variance be granted to
allow Walgreen and himself to maintain their identify in the
center. He has a pylon sign now that meets the City Sign Code
requirements, and he is asking for the same type of signage at the
new center.
Mr. Fitch that as of July 25, 1991, he would like to lease the
building back from the HRA for the remainder of the season and any
part of next season that he would need until such time as he can
move into a new location. His attorney is drafting a lease. He
will also have a new appraisal by that time.
�
Ms. Dacy stated that will be an item on the July HRA meeting.
HOIISING � REDEVELOPMLNT AIITHORITY MTG.. JIINE 27, 1991 PAGE 13
�'^,
6. CONSIDERATION OF RICE PLAZA ITEMS:
This item was continued until the next meeting.
7. APPROVE REMOVAL OF TREE STUMPS AT LAKE POINTE:
MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve a contract
with Greenmasters, Inc., the Lake Pointe maintenance contractor for
$2,325 ($46.50 per stump) for the removal of tree stumps at Lake
Pointe.
IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERB DECLARED
THE MOTION CARRIED IINANIMOIISLY.
Mr. Commers asked staff to make sure that Greenmasters has adequate
insurance.
8. CLAIMS:
a. Check Register (2129-2136)
MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the
check register June 12, 1991, with the addition of check #2136
^ for Peter Patchin in the amount of $5, 700 for an appraisal
done in conjunction with the Lake Pointe property.
IIPON A VOICE VOTE� ALL VOTING AYE, CBAIRPERSON COMMERS
DECLARED THE MOTION CARRILD IINANIMOIISLY.
9. INFORMATION ITEMS:
The following were information items only:
a. Memo from John Flora regarding University Avenue
Improvements
b. Policy Discussion regarding School District TIF Turnbacks
c. Update on Fridley Town Square
d. Update on Mississippi Street Improvement Project
!
ADJOURNMENT•
Chairperson Commers declared the June 27, 1991, Housing &
Redevelopment Authority meeting adjourned at 9:30 p.m.
Res ectfully s, mitted,
� °
��
Ly e Saba
Recording Secretary
8 I G N- IN 8 H$ E T
,"�
80IISING AND REDEVELOPMENT AIIT80RITY MEETING, J�me 27, 1991
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