Loading...
HRA 01/12/1995 - 29578� �"'� � CITY OF BRIDLEY HOIIBING & REDEVELOPMENT AIITHORITY MEETI1JGs JANQARY 12, 1995 CALL TO ORDER• Vice-Chairperson Schnabel called the January 12, 1995, Housing and Redevelopment Authority meeting to order at 7:35 p.m. ROLL CALL: Members Present: Virginia Schnabel, Jim McFarland, John Meyer Members Absent: Larry Commers, Duane Prairie Others Present: William Burns, Executive Director Barbara Dacy, Community Development Director Jim Casserly, Financial Consultant Grant Fernelius, Housing Coordinator Rick Pribyl, Finance Director Jim Utter, 131 Sylvan Lane, Fridley, NIIJ APPROVAL OF NOVEMBER 10 1994 HOUSING AND REDEVELOPMENT AUTHORITY MINUTES: MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the November 10, 1994, Housing and Redevelopment Authority minutes as written. IIPON A VOICE VOTE� ALL VOTING AYE, DICE-CBAIRPER80N BCHNABEL DECLARED THE MOTION CARRIED ONANIMOIISLY. ACTION ITEMB: 1. CONSIDER ITEMS REGARDING SOUTHWEST OUADRANTo A. CONSIDER CONDEMNATION RESOLUTION ON SUH PROPERTY Ms. Dacy stated the City continues to negotiate with the Suh's. Mr. Burns has been meeting with their representative. In order to accomplish the redevelopment schedule, it is appropriate the have the Housing and Redevelopment Authority (HRA) approve the resolution included in the agenda packet. Staff are still hopeful to complete a successful negotiation within the next week to ten days. Staff would like to have the resolution in place if it would become necessary to have the attorney file the appropriate documents. The law firm of Barna, Guzy and Steffen prepared the resolution, and staff recommends the HRA approve the resolution with the knowledge that staff are still trying to negotiate a successful acquisition. Mr. Meyer asked how far apart the two sides were in these negotiations. HOIIBING & REDEVELOPMLNT AIITHORITY JANOARY 12. 1995 PAGE 2 /"� _ Mr. Burns stated the parties are quite far apart on the settlement. It looks as if this may end up in condemnation; however, the representative for the property owners thinks a settlement can be reached. Mr. Meyer asked, if condemnation proceedings are initiated, is the rationale clear and do we have the authority to proceede Ms. Dacy stated the HRA adopted a redevelopment plan 15 years ago that included this site, and it is clear that the HRA intended to acquire the property as part of the developmente Mr. Utter stated he lives in the area and is concerned about what is going on there. He had read in the paper about the redevelopment and was not certain that the apartment buildings would be included in the redevelopment. That is why he was attending the meetingo Ms. Dacy stated the City Council was having a public hearing on February 13 to determine whether the apartment buildings should be included in the redevelopment. That is the meeting to attend to express opinions. She suggested Mr. Utter call staff to discuss the concept plan for the site. � Mr. Burns stated he thought, at this time, it was fair to say that there appears to be a consensus of the City Council and HRA to move to acquire the four apartment buildings. That will be formalized by taking a number of steps including e�anding the TIF district and condemnation proceedings. The City is moving in that direction. MOTION by Mr. McFarland, seconded by Mr. Meyer, to approve the Resolution of the Board of the Housing and Redevelopment Authority of Fridley, Minnesota, Authorizing the Acquisition of Certain Property by an Eminent Domain Proceeding. IIPON A VOICE VOTE, ALL VOTING AYE, �ICE-CHAIRPERBON SCffiJABEL DECLARED THE MOTIOAT CARRIED IINANIMOIISLYe B. COATSIDER RESOLUTION TO AUTHORIZE EXECUTION OF THE CONTRACT FOR EXCLUSIVE NEGOTIATIONS Ms. Dacy stated she did not put the actual contract in the agenda because they then were in the process of negotiating with Rottlund Companies, and she wanted to come to the HRA with a final conclusion. Her memo outlined the general terms of the contract. Staff would like the HRA to pass the resolution, included in the agenda packet, authorizing the Chairperson and Executive Director to execute a contract. �'"� /'� HOIIBING � REDEVELOPMENT AIITHORITY JANQARY 12. 1995 PAGE 3 Mr. Casserly stated the contract lays out more of the timetable for the Authority and Redeveloper to commit to putting the project together. The contract essentially lays out a timetable and commits the City to work with no one other than Rottlund Homes. Mr. Casserly reviewed the terms of the contract. The City of New Brighton had the same agreement with the same company. Mr. Meyer referred to page 5, I., and asked the cost of the utilities. Ms. Dacy stated they did not have the cost estimate because that will depend on the site layout and how the utilities are brought in. Depending on the alignment of Third Street, the estimated cost is $115,000 to $130,000. The City has not specifically talked to Rottlund about it but she thought they would pay the costs up front. Ms. Dacy stated staff recommends approval of the resolution subject to review by the Chairperson and Executive Director. MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the Resolution Authorizing Execution and Delivery of a Contract for ^ Exclusive Negotiations By and Between the Housing and Redevelo ment Authority In and For the City of Fridley, P Minnesota, and the Rottlund Companies, Inc.; subject to review by the Chairperson and Executive Directore IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CSAIRPER80N BCHNABEL DECLARED THE MOTION CARRIED UNANIMOIISLY. C. CONSIDER CONTRACT FOR RELOCATION CONSULTANT Ms. Dacy provided quotes received from three consultants. Staff recommends the HRA hire Professional Redevelopment Resources, Inc. Staff is making this recommendation based on the fact that they submitted the lowest quote per tenant or household for the apartment relocation, the lowest quote for the business relocation for the commercial entities on the Suh property, and the hourly rate was between the other quotes. Based on our working relationship with Mr. Schnitker and his proposal, staff recommends the HRA provide authorization to execute a contract not to exceed $63,340. Mr. Meyer asked if staff had checked references. Ms. Dacy s relocation references n services. Al l f irms tated the City had hired Mr. Schnitker to do another for the Riverview Heights project and had checked his at that point. That is how staff became aware of his For the others, staff spoke with other communities. seemed to be well recommended. It comes down to an n, HOIIBING � REDEVELOPMENT AIIT$ORITY JANIIARY 12. 1995 PAGE 4 issue of cost. The list of duties for this project is included in the agenda packet. MOTION by Mr. Meyer, seconded by Mr. McFarland, to award the contract for relocation consultant for the Southwest Quadrant redevelopment to Professional Redevelopment Resources, Inc., and the contract is not to exceed $63,340. IIPON A VOICE VOTE� ALL VOTINt3 AYE� VICTs-CBAIRPER80N SCBNABEL DECLARED THE MOTION CARRIED IINANIMOIIBLY. D. CONSIDER CONTRACT WITH NlACROMEDIA FOR COMPUTER IMAGING Ms. Dacy stated the computer imaging had been discussed at the joint meeting with the City Council. After that meeting, staff met with Mr. Blundetto from Macromedia Technologies Inc., described the project and asked them to submit a proposal which was also reviewed with Rottlund Companies. Staff recommends the HRA purchase Option 1 for three 11" x 14" prints of selected views into the development and the two-minute video animation for a total cost of $19,100. The HRA and Rottlund would split the cost 50/50. The video shows what the buildings would actually looking using computer animation. ^ Ms. Schnabel asked what would be shown on the three photo realistic stills. Ms. Dacy stated, essentially, the site will be vacant. Macromedia will take the building plans, computerize the plans, make a computer image of what the buildings will look like and provide images of what the site will look likee Mr. Burns asked what would happen if they wanted the prints to be poster size. Ms. Dacy thought the enlargement costs would be about $250 - $300. Ms. Schnabel thought the drawings and schematics provided by Rottlund would serve the purpose of providing the audience with a visual image of what will go there and then have the four-minute animation in its place. Ms. Dacy stated the company apparently has to complete Option 1 first prior to doing the animation. Mr. Meyer stated this would, basically, be to aid others in understanding the redevelopment at the public hearing. � Ms. Dacy stated yes. There will be at least one neighborhood . meeting and two City Council meetings so they will be used. � HOIISING & REDEVELOPMENT AIITHORITY JANUARY 12, 1995 PA�3E 5 Mr. Meyer thought it valuable to give the best possible presentation at the public hearing to stop concerns. Ms. Dacy stated she wrote the memo to have the HRA authorize a contract for the full cost because staff did not know if Rottlund would cover half. Rottlund has agreed to do this; however, we do not have a signed agreement yet so she would still like to have this approved as such. MOTION by Mr. McFarland, seconded by Mr. Meyer, to authorize staff to execute a contract with Macromedia Technologies, Inc. at a cost not to exceed $19,100. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPER80N SCHNABEL DECLARED THE MOTION CARRIED IINANIMOIISLY. 2. CONSIDER ACOUISITION OF FRANK'S USED CARS Mr. Burns stated the recent death of Ms. Gabralcik is leading to efforts on the part of the estate to sell the property. Since the HRA has talked about acquisition, he thought this was appropriate. He knows approximately what the property should cost to acquire. He made an initial offer, and the family has �..� made a counter offer. The City is proceeding to do a Phase I environmental study on the site. He recommends the HRA approve conceptually to acquire the property. This would be the second of three commercial properties along University which could be acquired. MOTION by Mr. McFarland, seconded by Mr. Meyer, to approve the concept of proceeding with negotiations to acquire the Frank's Used Cars property. IIPON A VOICE VOTE� ALL VOTING AYEs VICE-CHAIRPERBON SCBNABEL DECLARED THE MOTION CARRIED IINANIMOIIBLYe 3. CONSIDER CONTRACT WITH MICHAEL O'NEAL TO CONDUCT FOCUS GROUPS Ms. Dacy stated, as a result of the redevelopment analysis, �his is a recommendation to initiate Focus Groups as recommended in the plan. Staff's recommendation is to hire Michael O'Neal for $8,700, who was recommended by Councilmember Jorgenson. Staff saw a video tape of a focus group, interviewed Mr. 0'Neal and talked about what they want to do. Staff inet with him twice and talked about what we want to accomplish, and he came back with a proposal. He would conduct six groups; three in Hyde Park and two for housing program recipients and those that did not receive assistance. The information is intended to refine existing �'1 programs and create specific program needs for the Hyde Park � HOIISING & REDEVELOPMENT AIITHORITY JANOARY 12, 1995 PAGE 6 area. She thought they would learn a lot so that they can build on programs in other communities. Ms. Dacy stated this is a follow through of direction from the City Council. We have identified a neighborhood to start with based on our analysis. This is the first step in that implementation. Staff recommends that the HRA authorize staff to execute a contract for an amount not to exceed $8,700 to conduct six focus groups. Mr. Burns stated Mr. Larson is working in that neighborhood with the inspection program so they will also get information from that. Ms. Schnabel asked if there had been analysis done before in the Hyde Park area. Ms. Dacy stated there had not been an analysis to the extent of housing condition and need. There has been outside studies done in terms of appearance. Other than what we have just completed doing, the focus group will be another part of that analysis. Staff is trying to put this all together to develop a cohesive program. This is the most amount of detail we have hade �, Mr. Meyer stated this is the only time we have been talking to the people. It is well worth the effort. Mr. O'Neal sounds like the right person to do the job. Mr. McFarland asked if the fees included those passeci on to the participants. Ms. Dacy stated no. Mr. O'Neal recommends we offer an incentive to the participants. He suggested a budget from $25.50/ participant to purchase smoke detectors or a door lock, etc., to provide an incentive. Staff has incorporated these costs into the housing operating funds. MOTION by Mr. Meyer, seconded by Mr. McFarland, to authorize staff to execute a contract with Mr. Michael O'Neal for an amount not to exceed $8,700 to conduct six focus groups. IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON 8CffiJAHEI� DECLARED THE MOTIOAT CARRIED IINANIMOIIBLY. Mr. Burns suggested the HRA consider the concept of a consent agenda. In doing so, a block of items can be approved at one time. If there is a question or a controversy, it takes just one vote to take that item off the consent agenda. He considered agenda items numbers 4, 5, 6, and 7 as routine items which could � be approved as a block. HOII8INC3 & REDEVELOPMENT AIITHORITY JANIIARY 12, 1995 PAGE 7 r"� MOTION by Mr. McFarland, seconded by Mr. Meyer, to recommend approval of the concept of a consent agenda. IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPER80N BCHNABEL DECLARED THE MOTION CARRIED IINANIMOIISLY. Ms. Schnabel requested staff to mark those items for a consent agenda so members are aware of ite 4. ESTABLISH PUBLIC HEARING OAT FEBRUARY 9, 1995. REGARDING DISPOSITION OF SCATTERED-SITE PROPERTIES 5. CONSIDER RESOLUTION AUTHORIZING 3o COST OF LIVING INCREASE F'OR THE HOUSING COORDINATOR 6. COATSIDER AUTHORIZATION TO BID ON 1375 SKYWOOD LANE N.E. 7. REVENUE AND EXPENSES MOTION by Mr. McFarland, seconded by Mr. Meyer, to approve the following: To establish a Public Hearing on February 9, 1995, regarding the disposition of scattered-site properties; to consider the Resolution authorizing 3o cost of living increase for the Housing Coordinator; to consider authorization to bid on 1375 Skywood Lane N.E.; and to approve check register #25370 to #25398 as submitted. IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CBAIRPER80N BCHNABEL DECLARED THE MOTION CARRIED IINANIMOIIBLYe 8. REVIEW SCHEDULE OF REDEVELOPMENT OF SOUTHWEST OUADRANT Ms. Dacy stated various processes are all going on at the same time. The key dates for the HRA were included with the agenda packet, page 8.C. The first two items on that page have been accomplished. At the next meeting, the HRA will be considering a resolution to expand the TIF district subject to the City Council's approval and, if staff cannot successfully negotiate with the apartment owners, the HRA may consider a resolution for condemnation on the next agenda. Finally, the date for the development contract approval will probably be June or July to actually review the development contract. Ms. Schnabel asked if there has been contact with the apartment owners. Mr. Burns stated there has been contact with the apartment owners. � HOIIBING & REDEVELOPMTNT AIIT80RITY JANIIARY 12, 1995 PAGE 8 i"� � 9. REVIEW PROPOSAL FOR LOAN AGREEMENT BETWEEN THE CITY AND HRA Ms. Dacy stated, at the joint meeting with the City Council and HRA, the concept of a loan agreement between the City and the HRA was briefly discussed. Since then, staff have talked about initial terms. Staff is proposing that the City loan the HRA $1,600,000 for 15 years at 5o interest. The HRA would pay that back via the tax increment that is generated by the development. Also discussed were bonds and other approaches to financing a shared agreement between the City and the HRA. Staff felt this was the best and easiest way to accomplish this approach. A similar memo was sent to the City Council last weekend, and she has heard no objections. Pending HRA discussion, staff would have the City Council approve the loan at their next meeting. Mr. Casserly stated the loan represents a fairly good discipline. The HRA is borrowing money from the City and repaying it through the tax increment. If this was financed through a second or third party, there would be additional expenses. There are issues that need refinement because we are not sure how much development will be on that site or the density. We are in the process of refining the expenses and these will get more refinede The goal was to get the cash paid for the land, subtract that � from the total, borrow as much as we could pay back with a loan, and the remainder would be taken out of the fund balance. That is good discipline. The HRA is not borrowing money that it cannot repay, and it keeps everything solvent. We are dealing with a cash flow problem, and the City is providing a low interest loan with almost no costs. Mr. Burns stated one of the main issues was whether or not to use external or internal sources. If we used external sources, we would use taxable bonds. With today's interest rate, this was not feasiblee OTBER BIISINE88 12. PHASE II ENVIRONMENTAL AUDIT FOR THE SOUTHWEST 4UADRANT Ms. Dacy stated Mr. Bruce Leisch is doing a Phase II audit. In borings done in the southwest corner of the site by the fast lube business, they have found some oil contamination. They feel it is in one particular area of that site near the public right-of- way and Mississippi Street. The next step in that process is to take two bids to prepare a remediation plan and then initiate testing to find out the extent of the problem. Mr. Leisch recommended three or four wells be drilled in the immediate area and the soil tested. Based on the result of those test wells, the remediation plan will be developed. Most of the costs for remediation should be reimbursed from the petro fund. HOIIBING & REDEVELOPMENT AIIT80RITY JANIIARY 12, 1995 PAGE 9 i� 13. ENVIRONMENTAL AUDIT AT LAKE POINTE Ms. Dacy stated minor exploratory borings are being done. Apparently in 1949, there was a bus garage in that area. Because that soil has been redirected, it is likely they will not find contamination. They are doing the borings in order to convey a clean title. Ms. Dacy stated the groundwater is being tested on the site of the gas station on East Moore Lake and Hathaway. Lake Pointe is downstream from that site. It is not possible for us to say there is no groundwater contamination below Lake Pointe. 14. SUNIlKARY OF EXPENSES Ms. Schnabel requested, with the Southwest Quadrant, to have a periodical summary of expenses incurred so they can see a running total. Ms. Dacy stated it might be a good idea to put this information in one place. This is currently separated out in the budget. Mr. Pribyl stated the items are coded for the development. Staff � would be able to provide that information. 15. CONFLICT OF INTEREST STATEMENTS Ms. Schnabel thought Conflict of Interest statements had been signed in the past and asked if this should again be done. Mr. Pribyl stated he would check on this. ADJOURNMENT MOTION by Mr. Meyer, seconded by Mr. McFarland, to adjourn the meeting. IIPON A VOICE VOTE� ALL VOTING AYE� VICE-CHAIRPERBON SCBNABEL DECLARED THE MOTION CARRIED AND THE JANUARY 12, 1995, HOIIBING AND REDEVELOPMLNT AIITHORITY MEETING ADJOIIRNED AT 8:45 P.M. Respectfully submitted, , c.'t c,��z �,� � ( ���/�,�=1 ��cJ Lavonn Cooper^� Recording Secretary �'`, � � �� 8 I G N— I N S H E E T HOIISING AND REDEVELOPMENT AIITHORITY MEETINt3, January 12, 1995 Name Address/Business .—.- . � �— �_ ��.