HRA 07/08/1993 - 29563,�
CI'1eY OF FRIDLEY
HOIIBING & REDEVELOPMENT AIITHORITY MEETING� JIILY 8� 1993
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CALL TO ORDER:
Chairperson Commers called the July 8, 1993, Housing and
Redevelopment Authority meeting to order at 7:30 p.m.
ROLL CALL•
Members Present: Larry Commers, Virginia Schnabel, John Meyer,
Duane Prairie, Jim McFarland
Members Absent: None
Others Present: William Burns, Director of HRA
Barbara D�cy, Community Development Director
Grant Fernelius, Housing Coordinator
Paul Hansen, Staff Accountant
Jim Casserly, Consultant
Chuck Tuchfarber, NuSports Systems, Inc.
Pat Pelstring, Business Development Services
Arland Breyer, Cinnamon Skins
Terrie Mau, Cinnamon Skins
^ APPROVAL OF MAY 20. 1993. HOUSING & REDEVELOPMENT AUTHORITY
MINUTES•
MOTION by Mr. McFarland, seconded by Mr. Prairie, to approve the
May 20, 1993, Housing & Redevelopment Authority minutes as written.
IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLAR�D
THE MOTION CARRIED IINANIMOIIBLY.
1. MEMO ON REQUEST FOR ASSISTANCE FOR SPORTS SPREE IN MOORE LAKE
COMMONS:
Ms. Dacy stated Sports Spr�e is an indoor family entertainment
center which is proposed to be located in the former Country Club
Market tenant space in Moore Lake Commons Shopping Center located
on the east side of Highway 65 and north of East Moore Lake Drive.
The total project cost to locate Sports Spree in that tenant space
is $900,000.
Ms. Dacy stated that in the correspondence dated July 2, 1993,
the petitioner, NuSports, has obtained commitments from private
investors and a bank loan leaving a gap of $80,000. The petitioner
is requesting a$50,000 loan from the HRA, and the remaining
$30,000 would be raised from private investors. The proposed term
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80II8INa & REDEPELOPMLNT AIITHORITY MTa.. JIILY 8, 1993 PAa$ 2
of the loan suggested by the petitioner is ten years at an interest
rate 7.5�.
Ms. Dacy stated the staff is pleased to have this use in the Moore
Lake Commons area. There is no question that this entertainment
center would add to the vitality of that project area. Staff also
understands that this location is the first of four anticipated
Sports Spree facilities in the metro area. However, in the past
the HRA has not developed a policy to assist commercial leasehold
tenants. Previous assistance policies have been developed for
free-standing buildings and users only. Also, on several
occasions, the HRA has indicated to staff that funds should be
prioritized for housing programs, redevelopment priorities such the
Lake Pointe site and southwest quadrant at Mississippi Street and
University Avenue, and for industrial business expansion and
retention.
Ms. Dacy stated that if the HRA decides to proceed with the loan,
staff would like to point out the following issues:
1. Although the proposed location is in the redevelopment
project area, it is not in the tax increment district;
therefore, there is not the backup�for capturing the
increment from the added improvements to the building.
'� 2. The loan has to be secured by the ownership of Sports
Spree. (If the HRA did execute the loan, the interest
earnings based on 7.5� over ten years �aould be
$21,960.10.)
Ms. Dacy stated that Pat Pelstring, President of Business
Development Services, Inc., and representing Sports Spree, and the
President of Sports Spree, Chuck Tuchfarber, are at the meeting.
Mr. Pat Pelstring stated that this is somewhat of a unique project.
They believe Sports Spree is the type of developer the City of
Fridley is looking for in its commercial areas and which will
promote additional commercial growth in this area. It promotes a
family healthy recreational alternative for children and
adolescents, ages 8-20, and their parents. It is an alcohol-free
and smoke-free center. Sports Spree would also provide employment
opportunities for young people.
Mr. Pelstring stated this facility will be the first prototype
center in the Twin Cities area. An additional 2-3 facilities are
planned for the Twin Cities area. The Fridley facility will also
be the operations headquarters for the company which will add 3-5
employees initially.
Mr. Pelstring stated this is a new business, and they are well
� aware that it is very difficult to secure bank participation in a
new business venture. They believe the bank's participation,
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80IISING & REDEVELOPMENT AIIT80RITY MTd.. JIILY 8. 1993 PAaE 3
though not as much as they would have liked, indicates the bank's
endorsement support for this project. But, the difficulty in
raising the significant level of equity for the center has made it
difficult to complete the financing. They are asking the HR�,'s
consideration for this very unique project.
Mr. Chuck Tuchfarber handed out copies of the press release
announcing the project. He stated they believe the Sports Spree
facility offers at least three benefits to the City of Fridley in
bringing forth additional funds to this project:
1. It will revitalize the Moore Lake Commons Shopping
Center.
2. They will be employing approximately 20 people, many of
whom will be young people within the community. This
will be the operations center for the Twin Cities area.
3. This will be a nice addition to the social fabric in
Fridley.
Mr. Tuchfarber stated the Sports Spree Fun Center generically is
considered an indoor family entertainment center. The thing that
drives the product is the multitude of activities available 365
^ days a year. It is broken down into eight different groupings of
� activities within approximately 24,000 square feet of area. They
plan to have 18 holes of miniature golf, fast pitch and softball
batting cages for all age groups, a bumper car area, a soft play
area and climbing system for the younger children, a micro
basketball court, a number of party rooms, a video arcade area, and
a non-alcoholic sports bar. Included in the sports bar is the
Bridgeman's Soda Fountain. The prices range from 25 cents to $2.50
so it is very affordable to people in the community.
Mr. Tuchfarber stated the Sports Spree facility is designed for
children and parents to participate in activities on a pay-as-you-
play basis. To his knowledge, there is nothing like this in the
Fridley area, or a facility as complete as this in the northern
suburbs, so it will be a very nice addition to the Fridley
community.
Mr. Tuchfarber stated they have a number of substantial investors
who have put in a substantial amount of monies. The problem is
that this is a start-up company, and they are struggling to fill
in the gap. That is the reason for their request for a$50,000
ten year loan.
Mr. Pelstring stated they are not asking for a grant or tax
increment assistance but a market rate loan. They are also not
asking for any direct incentives or inducements. It will be a loan
� well secured to the HRA's satisfaction. They recognize this is a
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HOIIBING� & REDTVELOPMENT AIIT80RITY MTG.. JIILY 8. 1993 PAaE 4
unique request, but this is a unique project with a lot of
benefits.
Ms. Schnabel asked the maximum amount of people who can be served
in the facility at one time.
Mr. Tuchfarber stated they can serve around 300 people at one time.
On a busy Saturday or Sunday, they would anticipate about 1, 000
family members using the facility. Conservatively, they believe
they will serve 120, 000 people on an annual basis which will be
very good for revitalizing the Moore Lakes Common Shopping Center.
They believe it will pull from about a 10 mile radius.
Mr. Prairie asked the seating capacity for the restaurant.
Mr. Tuchfarber stated there are two areas in the restaurant, a
closed-off area which will serve around 60-70 people, and the main
sports bar area which will serve another 60 people, so the total
is about 120. They have some expansion room on the lower level
that can accommodate another 40 people.
Ms. Schnabel asked if there are any similar facilities in the Twin
Cities area.
� Mr. Tuchfarber stated there is a facility in Eagan called Grand
Slam, which has been in operation about 2 1/2 years and has been
very successful. That particular facility pulls from a 30 minute
driving radius.
Mr. Commers asking the timing for this request.
Mr. Tuchfarber stated that they would like to get some indication
from the HRA within the next 30 days. They would like to open the
facility in September. They have actually started the demolition,
but are holding any additional construction until all the funding
is in place.
Mr. Commers stated that with other projects the HRA has assisted,
they have either had tax increment behind them or some security in
real estate. They have not done anything quite so straight-forward
regarding tenant improvements or something of that nature. He did
not know if the improvements are necessarily reflected in the value
of the building. Even so, the project is not in the tax increment
district, and the HRA cannot capture any revenues to offset the
risk of the loan. What the HRA members have to decide is whether
or not this is the type of project they would like to consider.
Mr. Meyer stated this venture does not own the building. It is a
tenant and there are $950,000 for leasehold improvements so the
HRA really has no collateral for its loan.
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80IISIN(3 & REDEVELOPMENT AIITHORITY MTt3., JIILY 8, 1993 PAGE 5
Mr. Pelstring stated he can understand the HRA's concern regarding
the loan and that the HRA gets a secure investment. They would be
happy to meet with staff to work out something that would give
the HRA some comfort. They do recognize that this site is not in
a tax increment district. That is why they are not asking for a
3� interest rate or a grant. They are just trying to fill a gap
in the market rate and give the HRA a reasonable security level.
He believed these are issues they can work out to the HRA's
satisfaction.
Mr. Meyer stated it seems like they are going into the "loan
without collateral" business and getting into a leasehold
improvement situation which is noticeably different from normal
HRA activities in terms of advancing public monies. He can
understand the potential benefits to the Moore Lake Commons
Shopping Center and the City, but it would obviously create a
demand on the HRA's resources for other types of similar ventures
in the City because they would have breached a certain activity
beyond which they have not gone before. Ignoring the merits of
this particular case, does the HRA want to get into this extended
venture?
Mr. Commers stated the issue before the HRA is whether or not the
HRA has any interest in this kind of a transaction. If they do,
^ then there can be further discussions. But, it does bring up
policy issues which make this decision even more difficult.
Ms. Schnabel stated she agreed with Mr. Meyer. The HRA recently
analyzed how they wanted to allocate funds and where they wanted
those funds directed. This proposal is outside that area. If the
loan was for a shorter period of time, she might be a little
happier with the request. Even though this request is not for a
large amount of money, it might be significant in terms of timing
on their other projects. What bothers her the most is that this
is deviating from the plan the HRA recently reviewed and
established.
Mr. Meyer stated they have bitten off quite a chunk of new activity
with the housing rehab area.
Mr. Commers stated the other side of it is that the Moore Lake
Shopping Center is not doing well, and i� would be nice to get the
Moore Lake Shopping Center up and going again. That corner is
highly visible.
Ms. Schnabel stated she agreed that this is an exciting project,
and she is supportive of the project. She is just reluctant to
open a new door for funding that the HRA has not done before in
light of the fact that the HRA recently made some very significant
decisions on the things they want to support.
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HOUBING & RIyDEVELOPIMBNT AIIT80RITY MTG., JIILY 8, 1993 PAGE 6
Mr. Prairie asked if there is any other way of helping out the
project in terms of funding, or is this the only proposal?
Mr. Burns stated he did not believe there is another source of
funding other than tax increment funding.
Mr. Meyer stated this is not the right time to be getting into the
business of insuring loans. If they do get into the loan business
with this venture, that means they would be op�ning the door for
other ventures.
Ms. Schnabel stated she supported Mr. Meyer's statement. The HRA
has already made their commitments.
Mr. Prairie agreed that this deviates from what the HRA has done
in the past; however, it would be nice to have a viable business
in the Moore Lake Shopping Center.
Mr. McFarland stated he saw two things with this request. The
first one is the risk, and the second one is whether the HRA wants
this as a project. He believed the HRA will have to resolve the
latter first. He would like to see something happen in that
shopping center, but he is not sure if that is the HRA's function.
� Mr. Commers agreed that the risk is a separate issue.
MoTION by Mr. Meyer, seconded by Mr. Prairie, that, from a policy
point of view, the HRA does not wish to be involved in the funding
of tenant leasehold improvements as part of an overall development
proj ect .
IIPON A VOICE VOTE, COMMERS, 3CHNABEL� MEYER� MCFARLAND VOTING AYE,
PRAIRIE VOTING NAY, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED
BY A VOTE OF 4-1.
Mr. Commers stated that this was a very difficult decision. He
stated the HRA is very impressed with this project itself. Part
of the problem is the bad timing as the HRA recently spent many
hours developing priorities, putting together a program, and
allocating their resources. He did not think the HRA members are
against some kind of assistance if there is some other method of
doing it. He encouraged the Sports Spree people to continue to
talk to City staff and Jim Casserly to see if there are any
alternatives, but the HRA just is not in a position to honor the
current request.
Mr. Pelstring stated he understood the HRA's concerns. He sta�ed
he would like to continue discussions with staff. There are some
distinctive things about their project that can, from a policy
standpoint, set it apart from any other retailer that might come
�� in for assistance for different reasons. He would like to address
that issue first and that might help guide further discussions.
HOIIBINa & REDEVELOPMENT AIITHORITY MTa.. JIILY 8, 1993 PAGE 7
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In terms of the way the request was structured, he has some ideas
that might make some sense.
Mr. Commers wished them luck.
2. CONSIDER RESOLUTIOld REGARDING HOME IMPROVEMENT LOAN PROGRAM:
Mr. Fernelius stated there are four items on the agenda related to
the housing rehab program. Before getting into each resolution,
he would like to review each of the individual programs,
highlighting the features of each program. He stated he had
prepared a summary sheet on the Home Improvement Grant Program, the
Home Improvement Loan Program, the Home Mortgage Assistance
Program, and the Rental Rehabilitation Loan Program. He reviewed
each of these programs with the HRA.
Ms. Schnabel stated that wi,th the Home Improvement Grant Program,
she is concerned that the program will not be available to enough
people or to a limited number of people because the gross income
is too low.
Mr. Fernelius stated the City is in the process of receiving
applications. Out of 170 applications sent out, he has received
about 30 completed applications. About half of those are for the
,,� grant program. Based on�the verification submitted, these people
would qualify for the program so there is a demand out there.
These limits are established by Anoka County for the county-wide
program, and there are waiting lists in other parts of the County.
Ms. Dacy stated that at the August meeting, she will bring in the
census data indicating the gross household incomes.
Mr. Fernelius stated he had included a brief overview of the
application process. They are currently accepting pre-screening
applications. If all goes well, starting July 19 through the end
of July, he will go through the applications for the single family
programs and, using the criteria that has been established, score
each of these applications. At that time, those with the highest
scores will be given the opportunity to receive funding. During
the first of August, staff hopes to conduct a property inspection
to find out what type of code deficiencies exist so those minimum
items are included in the applicant's financing package. Once the
inspections are completed, the applicants will be given 30 days to
approach the lender in the case of the two loan programs for single
family in which to make an application. For the grant program, the
City will be working in cooperation with ACCAP to jointly
administer that program. The applicants for the grant program will
be directed to ACCAP for additional processing.
Mr. Meyer stated he is concerned that code violations are taken
�, care of with these programs. Does the owner create the list of
improvements he/she wants done?
HOIIBINa & REDEVELOPMENT AIITHORITY pITG., JIILY 8, 1993 PAGE 8
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Mr. Fernelius stated the contract inspector will generate that
list. As part of the application process, before HRA funds are
committed, staff has the opportunity to review the primary loan
application to make sure those improvements are included. It has
always been his understanding that in order for the HRA dollars to
be involved, the minimum code violation improvements have to be
included in the application.
Ms. Dacy stated that the minimum code improvements are still top
priority.
Mr. Fernelius stated that some of the documents that are attached
to the resolutions will need to be slightly revised, but there are
no policy changes or changes in program design. Any changes of
that nature would be brought back to the HRA.
Mr. Casserly stated all three resolutions for the housing rehab
programs are essentially the same in format. The design by these
resolutions is to have the HRA adopt the general policies for each
program. Attached to each resolution is a brief description of
each program. What is significant about that is the HRA is setting
the income limits for each program. The HRA is also approving the
form of the documents and authorizing staff to carry whatever
� actions are necessary to implement these policies and give effect
to the programs.
Mr. Casserly stated each resolution has specific documents attached
to it; and, by approving the resolutions, the HRA is also
authorizing the Executive Director and Chairperson to execute those
documents.
Mr. Casserly stated that, as Mr. Fernelius stated earlier, staff
is still in the process of doing some refining on a couple of
features in those documents, but the concept, program description,
and essential format are all contained in the present documents.
Mr. Commers stated that as a supplement to this, he would�like
staff to develop some type of monthly reporting process back to
the HRA, at least initially, on the number, type, and specific
characteristics of each program. This will keep the HRA updated
on what is taking place on an monthly basis.
MOTION by Ms. Schnabel, seconded by Mr. McFarland, to approve
Resolution No. HRA 3-1993, "A Resolution Establishing a Home
Improvement Loan Program; Establishing the Area of Operation;
Providing for the Delegation of Certain Powers and Duties;
Authorizing the Execution of a Memorandum of Understanding by and
between the Housing and Redevelopment Authority in and for the City
of Fridley and the Fridley State Bank".
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HOIISING & REDEVELOPMENT AIITHORITY MTG.. JIILY 8. 1993 PAG$ 9
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IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERBON CONII�iERB DECLARED
THE MOTION CARRIED IINANIMOIIBLY.
3. COATSIDER RESOLUTION REGARDING HOME MORTGAGE ASSISTANCE
PROGRAM:
MOTION by Mr. McFarland, seconded by Ms. Schnabel, to approve
Resolution No. HRA 4-1993, "A Resolution Establishing a Home
Mortgage Assistance Program; Establishing the Area of Operation;
Providing for the Delegation of Certain Powers and Duties;
Authorizing the Execution of a Mortgage Origination Agreement by
and between the Housing and Redevelopment Authority in and for the
City of Fridley and United Mortgage Corporation".
IIPON A VOICE VOTB, ALL VOTINC� AYE, CBAIRPER80N COMMERS DECLARED
THE MOTION CARRIED ONANIMOIISLY.
4. CONSIDER RESOLUTION REGARDING RENTAL REHABILITATION LOAN
PROGRAM:
MOTION by Mr. Prairie, seconded by Ms. Schnabel, to approve
Resolution No. HRA 5-1993, '�A Resolution Establishing a Rental
Rehabilitation Loan Program; Establishing the Area of Operation;
Providing for the Delegation of Certain Powers and Duties;
� Authorizinq the Execution of a Memorandum of Understanding by and
� between the Housing and Redevelopment Authority in and for the City
of Fridley and the Fridley State Bank; Authorizing Execution of an
Administration Contract with the Minnesota Housing Finance Agency".
IIPON A VOICE VOTE, ALL VOTIN(3 AYE, CBAIRPER80N COMMERS DECLARED
THE MOTION CARRIED IINANIMOIISLY.
5. CONSIDER RESOLUTION REGARDING CONTRACT INSPECTORS FOR HOUSING
REHABILITATION PROGRAMS:
Mr. Commers stated he has some concerns about the inspection report
in that he thought it was too general and not specific enough in
the items to be inspected. He suggested staff look at the Metro
HRA inspection report which seems to be a more specific checklist.
Mr. Fernelius stated staff wanted to keep in mind the cost of each
inspection in terms of how much time it would take to complete a
very lengthy inspection form. He generated the inspection report,
combining other inspection reports he had received. He is
certainly willing to revise this inspection form to make it more
specific regarding what items are to be covered during an
inspection. However, if they get a report that is very lengthy,
they may be creating a document that is going to take a lot of time
to complete, and they may not find inspectors who are willing to
do that kind of inspection for the price budgeted.
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HOIIBINa & REDEVELOPMENT AIITHORITY MTG., JIILY 8. 1993 PAGE 10
Mr. Fernelius stated he also wanted a user-friendly document so
that a copy of the inspection report could be given to the
homeowner that the homeowner could understand and which would help
eliminate a lot of extra paperwork.
Mr. Commers stated he believed the Metro HRA inspection report is
user-friendly in that it is all printed out and the inspector only
has to check whether a particular item passes or fails. There is
place at the bottom of the report for comments. With this type of
report, the City knows that the inspector has looked at each one
of the items listed.
Mr. Commers stated he would like staff to consider looking at the
inspection report to make it a little more specific and not so wide
open.
Mr. Fernelius state he is certainly willing to make modifications
to the inspection report to make it more detailed.
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve
Resolution No. HRA 6-1993, "A Resolution Authorizing Execution of
a Contract for Housing Rehabilitation Inspection Services" and to
adopt in general form the attached contract.
IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COI�IERB DECLARED
THE MOTION CARRIED IINANIMOIIBLY.
6. RESOLUTION ADOPTIIJG ICP7A RETIREMENT CORPORA.TION AS THE
DEFERRED COMPENSATION PLAN PROVIDER FOR THE FRIDLEY HOUSING
AND REDEVELOPMENT AUTHORITY:
Ms. Dacy stated this is an item that needs to be adopted because
the HRA has hired Mr. Fernelius.
Mr. Hansen stated that approving this resolution gives Mr.
Fernelius the retirement option that all City of Fridley employees
have.
MOTIOPi by Ms. Schnabel, seconded by Mr. Prairie, to approve
Resolution No. HRA 7-1993, "Resolution Adopting ICMA Retirement
Corporation as the Deferred Compensation Plan Provider for the
Fridley Housing and Redevelopment Authority".
IIPON A VOICE VOTE� ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED IINANIMOIISLY.
7. CLAIMS AND EXPENSES:
Mr. Hansen added two checks to the check register, one to
Isaacson Lawn Care Service, Lake Pointe Maintenance Estimate
�"� #3, in the amount of $3,924.27; and NSP in the amount of
$43.86.
HOIISIN(3 & REDEVELOPMENT AIITHORITY MTG.. JIILY 8, 1993 PA(3L 11
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OTION by Mr. Prairie, seconded by Ms. Schnabel, to approve
the claims and expenses and the issuance of checks, nuinbers
2343 - 2382.
IIPON A VOICB VOTE, ALL VOTING AYE, CHAIAPERSON COMMERS
DECLARED THE MOTION CARRIED IINANIMOIISI,Y.
8. DISCUSS STATUS OF RICE PLAZA:
Ms. Dacy stated the HRA acquired the Rice Plaza property in 1990.
In 1991, the shopping center was at full occupancy, and it had an
operating surplus of $47,000. In 1992, three of the eight tenants
left, and revenues dropped to $8,888. If the current four tenants
remain until the end of 1993, the projected balance is a deficit
of $8,130. These cash flow numbers do not include any type of
amortization for the original acquisition price.
Ms. Dacy stated Cinnamon Skins has a lease that extends until the
end of December 1993. Hong Kong Kitchen's lease expires at the end
of October 1993. The remaining two tenants are on a month-to-month
basis.
Ms. Dacy stated the HRA has received a letter from the owner of
� Cinnamon Skins, Arland Breyer, requesting to break the lease,
leaving the building on September l, so they can occupy another
space in Fridley.
Ms. Dacy stated staff has recommended to Mr. Breyer that the lease
be extended until at least November 1, which �aould match the Hong
Kong Kitchen lease and minimize the HRA's losses.
Ms. Dacy stated that staff has heard by word of mouth that another
tenant, My Sister's Closet, is also looking for another tenant
space. No matter what action the HRA takes in terms of the
Cinnamon Skins lease, the shopping center could be down to two
tenants for the last two months of the year. If that is the case,
staff recommends that the HRA authorize demolition in the last two
months of 1993. After the HRA's action at this meeting, staff will
tell Jim Kordiak to notify the tenants as soon as possible so that
they can begin looking for other locations.
Ms. Dacy stated that at the May 20, 1993, meeting, the HRA
authorized staff to proceed with a$5,000 driveway improvement to
the rear of the building because of some traffic conflicts with
Dairy Queen and the other tenants. However, if the HRA recommends
demolition, then it is not necessary to make this driveway
improvement.
Ms. Dacy stated that in March of 1992, Darrel Clark, the former
Chief Building Official, obtained a demolition estimate of $25,000
HOIISINa & REDEVELOPMENT AIITSORITY MTG.. JIILY 8, 1993 PAG� 12
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to remove the building. Staff believes that number is still
accurate.
Ms. Terrie Mau, Cinnamon Skins, stated she is representing Arland
Breyer's interest in this property. She stated they have found a
new location within Fridley which is available now, and they would
like to move their business to this new location. Finding property
available is Fridley is very difficult because of the type of
business they have. They have to stay in close proximity to their
current location in order to preserve their customer base. She
stated they had hoped that they would be able to move to the new
development on the old 10,000 Auto Parts site, but that doesn't
doesn�t appear to be happening. Their new site (in the old Cost
Cutters' tenant space on ,53rd Avenue) has been vacant for some
time, and the owner is anxious for them to move in on August 1.
With the new rent ad the fact that this is a slow time for their
business, they cannot foresee paying rent for two locations for
three months. They are requesting that the HRA release Cinnamon
Skins from their lease as of September 1, 1993, which is only two
months prior to the lease expiring on November 1.
Ms. Mau stated that the road construction and the Dairy Queen's
drivethrough have caused irreparable damage to their current
location. During the Dairy Queen's busy hours, from 6:00 to 9:00
„� p:m., which is also a busy time for Cinnamon Skins, the parking
� situation has been very difficult for their customers.
Ms. Mau stated they are in a very difficult spot, business-wise,
and they are hoping to continue their business in Fridley and are
motivated to stay in Fridley.
Mr. Meyer stated he believed this is a reasonable request.
Mr. Commers stated he agreed with Ms. Mau that with the
construction, things are really a mess at the Rice Plaza shopping
center.
Mr. McFarland stated he is in favor of releasing Cinnamon Skins
from their lease.
MOTION by Mr. Meyer, seconded by Mr. McFarland, to honor the
request by Cinnamon Skins to terminate the lease as of August 31,
1993.
IIPON A VOICE VOTE� ALL VOTING AYE� CHAIRPER80N COMMERS DECLARED
THE MOTiON CARRIED IINANIMOIISLY.
MOTION by Mr. McFarland, seconded by Mr. Prairie, to instruct Jim
Kordiak to give the other tenants notice of demolition and to
release Hong Kong Kitchen from their lease.
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HOIIBING � REDEVELOPMLNT AIIT80RITY MTG., JIILY 8. 1993 PAGE 13
IIPON A VOICE VOTL, ALL VOTING AYE, CHAIRPER80N COMMERS DECLARED
THE MOTION CARRIED IINANIMOIISLY.
It was the consensus of the HRA to not make the driveway improve-
ment to the rear of the building.
9. MEMO ON MiJLTI-TECH SYSTEMS INTEREST IN LARE POINTE SITE:
Ms. Dacy stated John Ryden from CB Commercial has expressed an
interest by Multi-Tech Systems to relocate its headquarters from
the Moundsview Business Park to approximately ten acres of the Lake
Pointe site. Multi-Tech would build a one-story, 70,000 square
foot building, with a portion of it as a two-story office complex.
Multi-Tech is looking for a high tech image site rather than the
typical manufacturing-warehouse industrial park appearance.
Ms. Dacy stated she has told Mr. Ryden that she did not believe
this proposal is consistent with the vision the �iRA and City
Council have for the Lake Pointe property. If the HRA feels
differently about this proposal, they should let staff know.
Mr. Commers stated the HRA and City Council spent a whole day on
May 8, 1993, discussing their vision for Lake Pointe. He agreed
with staff that this is not the type of project the City is looking
� for.
The HRA members agreed with Ms. Dacy and Mr. Commers.
10. MEMO ON STATUS OF ALL TEMP EXPANSION PROJECT:
Ms. Dacy stated this is regarding the request by All Temp for �tax
increment financing assistance for expansion of the existing All
Temp facility at 5400 Main Street. At this time, staff is just
waiting to see if All Temp is going to proceed with the project
and tax increment financing assistance request.
11. OTHER BUSINESS:
a. Tax Increment Financing Request from Victor Rosenblum
Ms. Dacy stated Victor Rosenblum owns a company in St. Paul
called Cooperative Plating, Inc. He would like to build a
second facility on a site in the Great Northern Industrial
Center. The new business will be called ECO Finishing, Inc.
The estimated project cost is $2,250,000, and they are
requesting $125,000 in tax increment financing assistance.
The new company will immediately create 30 new jobs with the
possibility of 80 jobs in the next five years. The initial
phase to build a 29,000 square foot office and industrial
complex.
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80IISING & REDEVELOPMENT AIITHORITY MTG.. JIILY 8, 1993 PAGE 14
Ms. Dacy stated staff received this information late last
week, and they have not had an opportunity to review the
information in detail with Mr. Rosenblum. Mr. Casserly has
briefly reviewed the information and found that it meets the
requirements of tax increment law and that the request can be
reimbursed in 3 1/2 tax years.
Ms. Dacy stated staff will be meeting with the petitioner.
Mr. Burns will probably submit this information to the Council
for informal discussion the latter part of July, and this
request will probably be on the HRA's August 12, 1993, agenda.
The HRA agreed to authorize staff to continue discussions with
Mr. Rosenblum.
b. Reuse of Property at 5720 Polk Street N.E.
Ms. Dacy stated ACCAP is not interested in rehabilitating the
existing structure at 5720 Polk Street and relocating it on
the property because of the excessive cost. Therefore, staff
is recommending that the City proceed to demolish the existing
structure. The memo dated July 1, 1993, was included in the
HRA packet to let the HRA know that this is a potential site
for the scattered site acquisition program, option number two
in the memo.
c. Request for HRA Funding of Wetland Consultant Study
Ms. Dacy stated that in the spring of 1993 during the
preparation of the City's 1993 General Fund budget, staff
determined that it was necessary to hire a consultant to
inventory the City's wetlands. The consultant contract is
necessary because of the passage of the Wetland Conservation
Act of 1991 by the State Legislature.
Ms. Dacy stated that request for proposals were mailed to six
environmental consultants, and the lowest cost as submitted
by Westwood Professional Services, Inc., and Peterson
Environmental Consulting, Inc., for $7,990.
Ms. Dacy stated that two-thirds of the contract cost, or
$6,000, will be paid through the City's General Fund. It is
requested that the HRA authorize up to $1,990 from the "Non-
Program Studies" line item of the 1993 HRA budget. The HRA
allocated $28,000 for non-programmed studies.
The Wetland Conservation Act of 1991 requires that cities
inventory where their wetland areas are and determine their
public value, and the consultant study will do that. Staff
believes some of these wetland areas are going to be located
in tax increment districts.
HOIISING & RI1DEVELOPMENT AIITHORITY MTG., JIILY 8, 1993 PAGE 15
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MOTION by Ms. Schnabel, seconded by Mr. McFarland, to
authorize an expenditure not to exceed $1,990 to be used for
a portion of the wetland consultant contract with Westwood
Professional Services, Inc., and Peterson Environmental, Inc.
IIPON A VOICE VOTE, ALL VOTING AYIy, CBAIRPERSON COMMERS
DECLARED TSE MOTION CARRIED IINANIMOIISLY.
ADJOURNMENT:
MOTION by Mr. Prairie, seconded by Mr. Meyer, to adjourn the
meeting. Upon a voice vote, all voting aye, Chairperson Commers
declared the motion carried and the July 8, 1993, Housing and
Redevelopment Authority meeting adjourned at 10:10 p.m.
Res ectfully submitted,
L e Saba
Re ording Secretary
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