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HRA 10/24/1991 - 29625� ,-"� �� � CITY OF FRIDLEY HOIISIN(� & REDEVELOPMENT AIITHORITY MEETING, OCTOBER 24, 1991 ���_�������__.,...�������_..����_____..��.,.�_.._..���_���_�..���___��..�..��� CALL TO ORDER• Chairperson Commers called the October 24, 1991, Redevelopment Authority minutes to order at 7:30 p.m. ROLL CALL• Members Present: Members Absent: Housing & Larry Commers, Virginia Schnabel, John Meyer, Jim McFarland Duane Prairie Others Present: William Burns, Executive Director of HRA Rick Pribyl, Finance Director Jim Hoeft, HRA Attorney Jim Casserly, Consultant Bob and Mike Schroer, Bob's Produce Ranch Dave Newman, 1814 Northdale Boulevard N.W. APPROVAL OF SEPTEMBER 12. 1991. HOUSING & REDEVELOPMENT AUTHORITY MINUTES• MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the September 12, 1991, Housing & Redevelopment Authority minutes. Ms. Schnabel stated the following correction should be made on page 3, first paragraph: "improvements to the building" should be changed to "construction of the building". IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMER3 DECLARED THE MOTION CARRIED IINANIMOIISLY AND THE MINIITES APPROVED AS AMENDED. 1. CONSIDER CONCEPT APPROVAL OF TIF ASSISTANCE FOR REDEVELOPMENT OF BOB SCIiROER PROPERTY: Mr. Newman stated that because of the time frame they have been under in order to get Lyndale Garden Center in before their spring season, they have been fast-tracking this project. While they have been processing their applications with the City, they have been seeking financing at the same time they have been doing the design work and working with the engineers. On Tuesday, they were told by their engineers that they have an unexpected expense of approximately $300,000 for storm water retention and, more specifically, soil correction work. This has caused them considerable concern. � HOIISING & REDEVELOPMENT AUTHORITY MEETING, OCT. 24, 1991 - PAGE Z Mr. Newman stated that since the last HRA meeting, they pursued a financing proposal with a rather large regional bank. They used the 504 financing program. However, in spite of the support of the local loan officer, the loan committee rejected the proposal. The reason is that Lyndale Garden Center building is considered a non- owner-occupied commercial property; and the committee has taken the position that no matter how the numbers are or how good the cash flow is, they will not finance a non-owner-occupied commercial building. They are now working with another bank whose response has been more favorable. Mr. Newman stated that because of this new anticipated cost of $300,000, they need to step back and re-evaluate the project and re-evaluate their alternatives. At this point, they need some clear direction before they can proceed any further. Mr. Bob Schroer stated they certainly appreciated all the time Mr. Burns and Mr. Casserly has given to them. They don't want the project to die, and they do want to see some type of new redevelopment on this corner. They are hoping that when they step back and take a look at the whole program that Lyndale Garden Center will still be encouraged to stay in the project. He stated he and his son have gone over the project quite thoroughly to look at another way to handle it, and they do have some parking � problems. They are working on ways to solve the parking problem. The problem is that the proj ect has become too expensive, and their ' type of business cannot support the building costs and preparation costs the project is going to require. Mr. Schroer stated they hope to be able to come back to the HRA within the next 3-4 months. 2. CLAIMS AND EXPENSES: a. Check Register (2162-2172) Mr. Pribyl stated he had a check (2173) to add to the check register for Maxfield Research, Inc., in the amount of $8,780.60 for 75o completion of the Fridley Analysis Housing Study. MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the check register (2162-2173). IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPER30N COMMERS DECLARED THE MOTION CARRIED IINANIMOIISLY. 3. LETTER FROM JIM KORDIAK REGARDING RICE PLAZA: Mr. Commers stated this letter is in response to the HRA's request for an update as to the advertising activities for the vacant space � at Rice Plaza. It is Mr. Kordiak's suggestion that he continue ,_ with the window advertising at this time. r"� HOUSING & REDEVELOPMENT AUTHORITY MEETING, OCT. 24, 1991 - PAGE 3 4. UPDATE ON RICE PLAZA: Mr. Commers stated this is an update on the Rice Plaza rents and is for informational purposes only. 5. UPDATE ON FRIDLEY PLAZA OFFICE BUILDING'S SECOND MORTGAGE: Mr. Commers stated that Mr. Hoeft has determined that no personal guarantees were provided to secure the second mortgage on the Fridley Plaza.Office building. The HRA will record the mortgage satisfaction document as soon as the check in the amount of $17,500 is received. Mr. Hoeft stated he believed the check might have already been received. 6. FINAL COPY OF DAIRY OUEEN LEASE• Mr. Commers stated the HRA members had a final copy of the Dairy Queen lease as revised according to the HRA's direction at the September 12, 1991, meeting. 7. MEMO ON DISPUTE OF PETER PATCHIN BILL: '� Mr. Commers stated this is for informational purposes only. 8. OTHER BUSINESS: a. Commissioners' Hearing Mr. Hoeft stated the HRA initially agreed to provide Mr. Don Fitch with up to a 30-day extension, or a continuance of the Commissioners' Hearing for the condemnation of the Dairy Queen property. That has caused some problems, because one of the Commissioners, 011ie Erickson, is out of town until the end of November, and another Commissioner, Al Kordiak, will be out of town beginning the end of November through the middle of December. He wanted the HRA members to know that there is a scheduling problem, and that the Hearing may not happen until January. It is unfortunate that the Hearing could not be held within the 30-day time period. b. Fridley Plaza Office Building Mr. Hoeft stated the new owners have settled with the previous owners who were in default. Howeyer, in that process, the new owners brought to staff's attention the fact that the status of the lease with regard to the parking ramp is very confusing. There was an underlying lease and there have been ^ several amendments to that lease and several referenced amendments in some of the ones that have been recorded that � HOII3ING & REDEVELOPMENT AIITHORITY MEETING. OCT. 24, 1991 - PAGE 4 ��1 have not been recorded. He is asking for authorization from the HRA to take the steps to clean up that lease so they do not run into any more problems in the future. He believed it will take about 1-2 hours of his time to get the copies and do one amendment that supercedes and incorporates everything that has been done to this point. Mr. Commers stated it seemed appropriate to get this all cleared up. When Mr. Hoeft is finished, he would like him to bring the lease with the changes back to the HRA for their review. ADJOURNMENT: MOTION by Ms. Schnabel, seconded by Mr. McFarland, to adjourn the meeting. Upon a voice vote, all voting aye, Chairperson Commers declared the motion carried and the October 24, 1991, Housing and Redevelopment Authority meeting adjourned at 8:05 p.m. Respectfully su itted, � yn Saba � Reco ding Secretary �