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HRA 02/13/1997 - 29795i��1 �� CITY OF FRIDLEY HOIISING & RBDEVELOPN�N'P A�THORITY MELTING FEBR�'ARY 13, 1997 CALL TO ORDER: Vice-Chairperson Schnabel called the February 13, 1997, Housing and Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL: Members Present: Members Absent: Virginia Schnabel, Jim McFarland, John Meyer Larry Commers, Duane Prairie Others Present: Barbara Dacy, Community Development Director Jim Casserly, Financial Consultant Grant Fernelius, Housing Coordinator Dave King, Center for Energy & Environment Gretchen Hanson, Tamarisk Resources Bruce Carlson, Northco John Gohmann, Minnesota Commercial Railway Company .APPROVAL OF JAN'IJARY 9 1996� HOUSING AND REDEVELOPMENT AUTHORITY MEETING - OTI N by Mr. Meyer, seconded by Mr. McFarland, to approve the January 9, 1997, Housing and Redevelopment Authority minutes as written. UPON A VOICL VOTL, ALL VOTING AYE, VICL-CHAIRPERSON SCFII�TABEL DSCLARLD THE MOTION CARRIED 'UNANIMOUSLY. CONSENT AGENDA• 1. 2. 3. CONSIDER APPLICATION TO MHFA FOR MIl�rn�'SOTA CITIES PAR.TICIPATION PROGRAM CONSIDER EXTENSION TO ADMINISTRATIVE SERVICES GREEMENT WITH CAP REVENUE AND EXPENSES Ms. Dacy stated Mr. Pribyl had submitted additional expenses needing approval as outlined in his memo dated February 13, 1997. OTICN by Mr. McFarland, seconded by Mr. Meyer, to approve the �°—� Consent Agenda and additional expenses for approval as outline in Mr. Pribyl's memo dated February 13, 1997. ^ HOIISING & REDEVELOPI�NT AUTHORITY MTG FEBR�ARY 13 1997 PAG� 2 IIPON A VOIC$ VOT$, ALL VOTING AYE, VIC$-CHAIRPERSON SCFIIV'VABEL D�CLARED THE MOTION CARRIED IINANIMOUSLY. ACTION ITEMS• 4. CONSIDER LOAN ORIGINATION AGREEMENT WITH CEE FOR HOUSING REHABILITATION PROGRAM Mr. Fernelius stated this item is a loan origination agreement with the Center for Energy and Environment (CEE). In March, 1996, we entered into an agreement with CEE to administer the housing rehab programs. CEE's responsibilities include answering general questions about the programs, providing applications, having a staff person available on Tuesday evenings at City hall to assist people, in addition to processing the actual applications which is an involved process. This includes verifying income, checking credit history, verifying the proposed improvements as well as checking on the title to ma.ke sure everything is correct. They also do the loan closing itself which is preparing the documenta, setting a time for the borrower to come to execute those documents, and record documents with the County to secure the loan. They also forward the loan information to the servicer so ^ that the loan payments can then be processed. The last thing that they do is to verify the improvements are completed. After the work has been completed, the borrower contacts CEE who will have a staff person go out to make sure the work is done properly. Mr. Fernelius stated CEE did an analysis laet year to evaluate their staff and overhead costs and discovered that they were not able to recoup all their costs. This year, they are requesting an increase in the fee. One of the most important changes that will be made thia year to the contract is implementation of an escrow procedure. We will place the loan funds in an escrow account. Those funds will be held by CEE and will not be released until the work is completed. This tightens up the program and reduces any possible risk to the HRA. The second aspect of this contract is the increase in fees from $225 to $350 to cover all the tasks mentioned in addition to taking on the escrow account management. The last change to the contract will be a modification to the memo. The memo indicated we were proposing a one-year contract. Staff is recommending a two-year agreement with CEE due to the success of the program and also trying to lock in some of the fee structures so we know what our obligations will be in the future. The contract would run through February 28, 1999. Staff has programmed these additional costs into the operating budget for the housing program. Mr. Fernelius stated staff's recommendation is to approve the loan i'1 origination agreement with CEE. ^ HOIISING & REDEVELOPMENT AUTHORITY MTG F$BR�ARY 13 1997 PAG$ 3 Mr. McFarland asked if the fee was paid by us. Mr. Fernelius stated yes. -The fee ie paid directly to CEE. Ms. Schnabel asked if the increase had already been budgeted. Mr. Fernelius stated yes. Mr. Meyer stated it seems that CEE is doing a lot for the money. He is pleased the higher fee would include managing the escrow account. He thought this was a positive forward step. Ms. Schnabel stated she thought this looked well thought out. OTION by Mr. McFarland, seconded by Mr. Meyer, to approve the Loan Origination Agreement with the Center for Energy and Environment. �PON A VOICE VOT$, ALL VOTING AYB, VICE-CHAIRP$RSON SCI�1'ABEL D$CLARED THE MOTION CARRIED UNANIMOII3LY. 5. CONSIDER REOUEST FOR TAX INCREMENT FINANCING BY MINNESOTA � COMMERCI.AL RAILWAY COMPANY Ms. Dacy stated Commercial Transload of Minnesota (CTM) is a subsidiary of Minnesota Commercial Railway Company. They are requesting that the City establish an economic development tax increment financing district and that the HRA approve tax assistance in the amount of $250,000 or 10% of their costs. They would like that assistance provided through a loan and a grant. Ms. Dacy stated the proposal is for a 57,000 square foot building. The proposed employment for the site was six employees. CTM operates a delivery or transportation service for their clients. Their specific clients are steel mills. They arrange to transport rolled coils of steel on rail cars. They come to this facility where they are transferred to trucks and the trucks deliver the coils to a variety of steel processors in the area. It is a warehouse use; however, it has a unique building design because they need a very large crane inside the building to unload the steel from the rail cars and then onto the trucks. The other interesting issue was that the site technically was considered railroad property. According to State law, that is valued differently than a typical commercial/industrial building. The valuation is completed by the State, not by the City Assessor. The valuation formula includes some accounting of income. Ms. Dacy stated these were issues when staff first met with Mr. /'� Gohmann. After staff pursued the analysis, there are observable advantages for this particular use. There is no outdoor storage � � �"1 I�OU�ING & REDE`�TELOPMENT AUTHORITY MTG FFBRUARY 13 1997 PAGE 4 proposed. There is only one dock, a significantly reduced parking lot space, and minimal obstruction on the site plan within the power line easement. Ms. Dacy stated the property is located in the northeast corner of the frontage road to University and 71st and just south of Northco Drive. They plan to extend the existing rail spur into the building where all the transfers would occur. There is a small parking area and lots of green space. Because of its clients for steel, they provide a unique service for manufacturing companies not only in Fridley but in the metro area. The rail transportation will reduce truck traffic not only on Fridley roadways but in the metro area. Mr. Gohmann states that transporting the steel by rail can eliminate three or four trucks. The other advantage is by creating a district there would be no local government aid reduction to the City as a result of this district. The petitioner is willing to pay the equivalent of taxes at the typical valuation of approximately $1.60/square foot or $92,000 for the life of the district. Because one of our issues was the unpredictability of the increment and the valuation, we felt it would be better for the HRA to enter into an agreement that would stipulate that the petitioner had to pay a minimum amount of taxes and that it would be used as and taxed as a warehouse. Ms. Dacy stated in the memo staff has proposed a pay-as-you-go approach because of the uncertainty of the increment. Because of the petitioner's willingness to pay a minimum amount of taxes, it is recommended that the HRA proceed with the creation of the district and the development of a development contract by providing assistance through a grant and through a loan process, and also subject that the petitioner agrees to pay $92,000 in taxes for the life of the district. A district such as this can last up to 10 years. Staff's recommendation is different from what was recommended in the packet, but staff feels that this is an appropriate use. The City Council reviewed this informally and did not identify any concerns. Staff recommends the grant and loan approach as in previous proposals. Mr. Meyer asked if a new district would include only this land. Ms. Dacy stated yes. It would contain the four-acre site proposed to be developed by the petitioner. Ms. Schnabel stated the railroad cars will be going in and out of the building. Is that going to create any back up of traffic in terms of the trucks coming in? Is there a chance that the rail cars would be across the roadway? � �IOII$ING & REDEV'ELOPMENT AUTHORITY MTG FEBRUARY 13 1997 PAGE 5 Ms. Dacy stated she understands the answer to be no. The building will hold six to seven rail cars and they intend to do their transfer activity inside. The extension of the spur would be on the north eide of 71st Avenue. Most activity would be in the middle of the day. Staff was very specific that they did not want rail cars stacked along the spur and along the right-of-way. There may be a block at the opening in the southeast corner of the building. It appears that trucks would stack inside. Mr. Gohmann stated this was correct. Thie is the very end of the line. He provided brochures of their company. Truck traffic can either come in on Northco Drive or on 71st. The train will be in about 11:00 a.m. The most they can shuttle at the crossing is seven cars at one time. The typical occupancy on the crossing would be 30 to 60 seconds. They may bring in another set of cars in the afternoon. The rail cars are operated at 5 miles/hour and will not block any process. Ms. Schnabel asked how long it took to unload one car. Mr. Gohmann stated there will be a 25-ton overhead electric crane inside the building. It takes 20 to 60 minutes to unload one car. ^ They have an operation now in place in Roseville. It started with no traffic at all. They developed the business and now work with steel producers all around the country. They have an inventory control system with customers so that a customer can order the specific coil out of inventory to be shipped. They may have to place a coil in a particular place in the building. Ms. Schnabel stated, with seven cars, it is potentially seven hours of work. She asked if trucks come in during that time and be loaded directly from the rail car. Mr. Gohmann stated most of the time the steel is stored. Sometimes, if it ia a rush, the steel may go directly on the truck. The typical timing is to store for 15 to 30 days. The building is climate controlled so that it is warm. Many of the coils are not coated and can rust if out in the environment. They supply a lot of structural steel for builders as well. This month, they have had 21 cars of steel beams alone. The typical workload for seven cars is six to eight hours. There are times this is three to four hours. OTIO by Mr. Meyer, seconded by Mr. McFarland, to authorize staff to start the process to create a tax increment district and to negotiate a development agreement. UPON A VOICE VOTE, ALL VOTING AYL, VICB-CHAIRPERSON SCFIIV'ABEL �"� DFsCLARisD THE MOTION CARRIED UNANIMOIISLY . � HOUSING & REDEVF�LOPNlENT AUTHORITY MTG. FEBRIIARY 13 1997 PAGg 6 6. CONSIDER REOUEST FOR TIF ASSISTANCE FOR T.AMARISK Ms. Dacy stated the request from Tamarisk is to assist in the purchase of the Holi Haus property near Sandy's Restaurant on Mississippi Street. The site is about one-half acre in size and the structure that exists was originally constructed in 1952. The site is located in the redevelopment project area but it is not in a TIF district per se. It is in the Moore Lake area. TIF funds can be spent in a redevelopment project area. The HRA has been doing this in the past through low interest loans. The loan agreements have ranged between 5o to 10% of project costs. The acquisition here is $120,000 plus $12,000 in rehab costs. To be consistent with previous requests, staff recommends a$12,000 loan with a 5% interest rate for a slightly longer term. Tamarisk is a non-profit organization, and they are attempting to create this site as a learning center and education facility for their clients and families. They have enough funds for the down payment for the property and she believed the letter received lists additional sources of funds that they would seek. In addition to the longer loan term, staff is also proposing that the payments on the loan do not have to start for three years. Staff believes that it is appropriate to provide a loan and recommends the HRA authorize ^ staff to prepare a loan agreement with the terms as outlined. Ms. Schnabel stated that Tamarisk is a volunteer organization which services terminally ill persons and their families. It is all volunteers. It is a little different type of business than we have normally serviced. Ms. Hanson thanked the HRA for their consideration. She feels Tamarisk is a gift to the community. They could not have done it without CDBG funds and support from the community. They are grateful for any consideration that the HRA could give them. She really feels the advantage to acquiring this property is that it is a home rather than an office space for what they are doing. What they are doing is giving a valuable gift for people who they are serving who are dealing with a terminal illness. No one receives money for what they do. They do not charge. They are catching the people that fall between the cracks. The resource education center also helps them to help a larger population by helping them before they need us. Hopefully, they will provide skills and resources so they can help others also. They help different portions of the community at this stage. MOTION by Mr. Meyer, seconded by Mr. McFarland, to authorize staff to prepare a loan agreement with Tamarisk for $12,000 at 5% interest for a 13-year term, with no principal and interest payments required in the first three years. � i'1 � � �iOIISING & REDEVELOPMBNT AUTHORITY MTG FLBR�'ARY 13 1997 PAGE 7 UPON A VOICL VOTE, ALL VOTING AYE, VICL-CHAIRPlsRSON SCI�TABEL DLCLARED THE MOTION CARRIED UNANIMOIISLY. 7. CONSIDER SUPPLEMENT.AL PAYMENTS AND CHANGE ORDER FOR 3RD STREET/MISSISSIPPI STREET INTERSECTION PROJECT Ms. Dacy stated Mr. Flora, Public Works Director, is asking the HR.A to take action to approve the supplemental payment request for the reconfiguration of the 3rd Street/Mississippi intersection. This was discussed at the last meeting. The good news is that there has been no increased costs. Staff are also requesting that the County evaluate providing additional funds of $10,575.73. Staff does not have a response back from the County. To summarize, the numbers are the same. The RAO construction issues and the final design costs were anticipated. What was not anticipated was the change order for additional binder and wear course work. Therefore, we are asking the County to contribute to defray those costs. At the last meeting, Mr. Meyer talked more specifically about the role of the consultants. In the attachments, there was a letter from the consultants which identifies overruns as a result of missed items in addition to savings that they provided. The Public Works Director is not recommending taking action against the consultant. The balance paid is within the particular line item that you had for the project. Staff recommends that the HR.A approve the supplemental payments and change order #1 for the project. If the County does agree to pay additional funds, those funds will be subtracted from the contribution. Ms. Schnabel stated staff's memo mentions on the second page that Mr. Flora's memo does not address the RAO easement acquisition costs or the final design costs. Ms. Dacy stated the chart she provided is the total. Mr. Flora's memo had a bottom line of $254,000 which did not include the easement acquisition costs or the design costs. Ms. Schnabel asked if those costs were included in the figure of $294,947.23. Ms. Dacy stated yes, they are included in the total. The contributions are subtracted from that total. OTION by Mr. McFarland, seconded by Mr. Meyer, to recommend approval of the supplemental payments and change order #1 for the improvements at 3rd Street and Mississipni Street_ UPON A VOICE VOTI+�, ALL VOTING AYL, VICE-CHAIRPERSON SCFII�TABEL DECLARED THE MOTION CARRIED UNANIMO'0'SLY. � HOUSING & REDEVELOPMENT A�THORITY MTG., FgBR�ARY 13, 1997 PAG� 8 INFORMATION ITEMS• 8. FR�DLEY EXECUTIVE CENTER UPDATE Ms. Dacy presented a mock-up of the proposed brochure. The brochure is a fold out brochure with a place in the center for inserts. The next step is to finish the inserts. Merrill Busch and Mr. Burns are going to be doing this soon. Ms. Dacy stated Mr. Burns and she met with MEPC about two potential office developments on the site. They are reviewing scenarios with Mr. Casserly regarding those two proposals. Staff would like to complete the brochure in the next two or three weeks and be able to present that to the potential office users. Ms. Dacy stated she has intersection plans for Highway 65 and I- 694. That improvement will be proceeding and going out for bid this fall. Money is available through the State so they may be able to get an early start. The ramps at University will be looked at this spring and the intersection improvement will be let for bid this fall and initial construction in the spring of 1998. An information meeting will be held at the Planning Commission ^ meeting next week. Ms. Dacy stated the HRA and City Council may have a joint meeting regarding a variety of issues that are now going on. Staff have not identified a date. Ms. Schnabel asked if they were still planning to do a promotional video tape. Ms. Dacy stated a video tape is still in the works. This could be in conjunction with a presentation to a company that would want to locate corporate headquarters on the site. The video would be short and list the economic advantages of locating a facility in Fridley. Mr. Meyer asked what the timing of the brochure was and how would it be released. Ms. Dacy stated they did not anticipate an event. They hope to complete the brochure in the next two to three weeks and to provide a number of copies to MEPC to use in their meetings. They have not talked about a direct mailing. Ms. Schnabel asked, when meeting with MEPC, do they have a feeling for what is happening in terms of office space in the metro area and the suburbs. Office space downtown is quite tight now and /'� there is a need for expansion. Do they talk about that in terms of the suburban areas to? �—, HOUSING & REDEVELOPMENT A�THORITY MTG FLBRUARY 13 1997 PAGE 9 �� Ms. Dacy stated yes. At the request of Mr. Commers, she is trying to compile some articles and statistics around vacancy rates. The leases executed during the 1980's are now nearing their end, and there seems to be a lot of interest on the part of a number of companies to evaluate staying or moving. The southwest metro area continues to grow. United Properties was successful in leasing one of their properties in Edina. There is movement in the class A office market. MEPC is optimistic that it will continue. 9. HYDE PARK NEIGHBORHOOD SURVEY Mr. Fernelius atated, in December, staff sent out a survey to the residents in the Hyde Park neighborhood seeking feedback on the housing programs offered in that neighborhood since September, 1995. Staff wanted their feedback on whether or not those programs had made a difference in improving the neighborhood. Mr. Fernelius stated, out of the 180 surveys sent, they got about 40 back or about a 22% response rate. They had a good response from homeowners. They did not get a good response from either landlords or tenants. In terms of the survey itself, most respondents had lived in Hyde Park more than five years. Most want to remain in their homes. Less than 20% of the respondents took advantage of the programs. The deferred financing seemed to be the most attractive reason for people to apply for the programs. There was some contradictory information. 50% of the respondents said that the programs encouraged them to remain in Hyde Park, but the other 50% either did not think the programs were encouragement for remaining or they were uncertain. Almost 2/3 thought the programs had improved the neighborhood. It is unclear what those results mean. What is clear is that the majority of residents would like the HRA to maintain the programs and continue to offer them, so there appears to be support for what we are doing. He thought the conclusion is that they want to increase the marketing efforts in Hyde Park and re-evaluate the efforts at the end of the year. Mr. Meyer asked if there was any things they could institute which would make the loan program more appealing to the residents of Hyde Park or provide more generous loan programs to raise the participation. Mr. Fernelius stated he thought they have a good program now. They are providing a deferred loan with up to $4,000 per unit which is interest free. He thought this was an attractive offer. They thought about making changes to the program but that may be premature. He thought they needed to redouble the marketing efforts and keep people aware of the programs. He did not think i'� they needed to make any changes to the program at this point. � HOIISING & REDEVF�LOPMENT AU'THORITY MTG FLHRIIARY 13 1997 PAGE 10 Ms. Schnabel asked if staff would want to go into the area and identify specific properties that staff thought needed assistance. Mr. Fernelius stated, last summer, they did canvas the area and take an asseasment of property conditions. Rather than focus on specific properties, continue to offer the programs neighborhood- wide. There was a lot of positive feedback as a result of the barbecue. The residents, he thought, are aware of what they are doing. They just need to continue. Ms. Dacy stated, in response to question #6, 2/3 stated they were not planning to make any improvements to their homes. It may not be related to the program as much as it may be related to the homeowner. They may not be interested. There may be an income issue or some other issue. Ms. Schnabel asked if staff was planning another remodeling fair. Mr. Fernelius stated yes. The remodeling fair will be held April 5 from 10 a.m. to 3 p.m. at the Fridley Senior High School. Hopefully, it will be as successful as last year. Most of the booths are reserved by contractors. n Ms. Schnabel thought that may generate more interest in the programs. 10. NOAH'S AR.K UPDATE Mr. Casserly stated he has been working with Gary Bidney and a group of accountants and analysts trying to determine the level of assistance that is needed to help with the Noah's Ark project. Earlier, a proposal was presented for an 108-unit senior complex. Because the redeveloper was completing another project and starting construction on one in Spring Lake Park, this was put on hold for a few months. In the meantime, they have had a chance to review market studies, look at comparable rents, and review performance. It is clear that without some level of assistance from the HR.A this project cannot be done. The difficult issue is trying to figure out the level of assistance that is needed. Mr. Casserly stated this particular project is in a tax increment district which runs until 2008. The amount of assistance is governed by that time period. In addition, the tax increment that is generated from a project like this is somewhat less because the use is eligible for lower class rates. We have estimated that the amount of increment that would be available for assistance would be $127,000 per year. We will be recommending that level of assistance be provided for the duration of the tax increment � district which would be until 2008 so there would be approximately 9 years of increment available for the project. �-•� #�OIISING & REDEVTLOPN�N''P AUTHORITY MTG FEBRUARY 13 1997 PAGE 11 Mr. Casserly stated, if the HRA does not provide increment, the rents wbuld have to be increased. We have calculated the increase to be anywhere between 14o to 15% in order to support the debt service for this project. They are estimating rents in 1999 upon completion of the property. Rents would range from $640 for a one bedroom, 740 square foot apartment up to a maximum of $1,185 for a two bedroom, 1,300 square foot apartment. Without the tax increment assistance, the rents for those same two units would range from $725 to $1,345 respectively. This is a considerable increase in those rents which puts the project out the market. We are not aware of any projects in the surrounding area that have been done with several levels of assistance including tax exempt bonds, tax credits, reduced class rates, tax increment financing, and possibly some other grants. Mr. Casserly stated next month they will be bringing back a redevelopment contract which will have that level of assistance in the contract and a separate report showing why we are recommending that level of assistance. The contract will say they will get this level of assistance as long as they have a certain number of units eligible for people with moderate income. That is the same requirement that is being used to get the tax exempt bonds. They � will be having the same requirements that they to meet for the Federal level in order to secure the tax exempt financing. It is a$9+ million project that should work. Ms. Schnabel asked what the rents were in the Spring Lake Park project. Mr. Casserly stated he had the study for that project and is near the study for this development. He will get those figures but they will be estimates. Ms. Schnabel stated, when they have multiple sources of funding, it would be interesting to know how that lowers the rent depending on the number of units. Mr. Casserly stated they have to make assumptions. When they do the pro formas, they are assuming a tax exempt rate on bonds. They have already worked into their pro forma what the debt service number would be. That debt service assumes that they can sell tax exempt bonds. They also work into the pro forma and show as a revenue stream the amount of tax increment assistance. They do a thorough analysis which must be done in order to market the bonds. What they have shown us so far seems to ring true. Mr: Casserly stated the rents for the units in Spring Lake Park are as follows: ^ HOIISING & REDEV�LOPMENT AUTHORITY MTG. FEBR�ARY 13 1997 PAGB 12 36 1 bedroom 700 square feet $640/month 8 1 bedroom 750 square feet $685/month 28 1 bedroom 900 square feet $720/month 8 1 bedroom/den 825 square feet $750/month 8 2 bedroom 940 square feet $855/month Most of the units are one bedroom or variations. Only four units are at the top price. Mr. Meyer asked what the rents are for Village Green. It seems that these rents are rather high for a one bedroom at 700 square feet. The quality of construction is not nearly the quality of construction at Village Green. That is a lot of money for people who are in subsidized housing. Ms. Schnabel stated is worries her that they are not addressing the low to moderate income problems that seniors are facing. The rents seem high. Mr. Casserly stated this is a fairly cost effective way for the HR.A to assist a moderate income need. The investment the HRA is being asked to make is a result of the tax increment which is a � limited number of years. They are assuming that the rents are going to be increasing at about 3o per year, and that they will then have the right kind of coverages they need as the tax � increment receipts drop off. They need to show in the pro forma that, after they no longer are getting this assistance, they will have adequate coverages otherwise they cannot sell the bonds. The HR.A is actually assisting with a minimum amount of revenue and in a fairly painless way. This is really assisting over time. Ms. Dacy stated it is a more moderate market at Norwood Square and Village Green. The market study showed there is a strong demand for moderate income units. They do have the one story townhome at Christensen Crossing but not a lot of those. They are still required to meet income requirements which are higher than at Norwood Square. This is hitting a different income bracket. Mr. Casserly stated, as a practical matter, oftentimes the senior tenant is going to fit within that income limit. It is easier to do these projects for senior housing. 11. LINDSTROM METRIC TIF REOUEST Ms. Dacy stated Lindstrom Metric was proposing to buy a five-acre site west of Main Street, just north of ANR Trucking. This property is located within the same district Mr. Casserly alluded to. They want to keep Lindstrom Metric in the community. As part of their soil test, they found an extraordinary amount of peat on the site, as much as 20 feet. They are getting large estimates � HOUSING & REDEV�LOPMENT A'OTHORITY MTG FgHRIIARY 13 �997 PAGg 13 back for soil correction and foundation costs. Staff is still working with the property owner. Mr. Lindstrom may decide to evaluate other sites. We indicated to him that if he is to pursue this site this may require up to the full amount of increment available for this site for the life of the district. She did not think the site would be developed without assistance. She was not sure that Mr. Lindstrom wanted to pursue acquisition of the property. Staff will keep the HRA informed. 12. PROPOSED STRATEGY TO OBTAIN LONG-TERM FUNDING FOR HOUSING REHABILITATION PROGRI�DRS Ms. Dacy stated the bottom line is that staff is trying to seek funding from the State through the Minnesota Housing Finance Agency (MHFA) in order to preserve the HRA funds for other redevelopment priorities in the community. The City loan that was accomplished last year was a good start to initiate a truly revolving loan fund that becomes self-sustaining. However, the HRA. and the City cannot afford to expend $1.5 million per year for the next 15 years. She thought the City had a good model that the State can use for first ring suburbs. They really focus on areas in St. Paul and Minneapolis and other areas that have an excessive � amount of blight. This may be a change for them. We are proposing a program that is more preventive. She thought it would save the taxpayers money in the long run. Unless directed otherwise, she, Mr. Casserly and Mr. Fernelius will be working with the City Council, the State legislature, and the MHFA to see if they would be willing to lend funds to Fridley and other communities. They are trying to find outside sources for funds. Mr. Fernelius stated the MHFA does have a lot of programs. Some have worked in our community but the bulk of the programs have not met our needs. We have a good model which we think could be used elsewhere. They may seek funding to make a good fit. Whether it will work long term is unclear at this point. At least, they should make the attempt to sit down and talk. o�R sIIS=�ss - 13. T,FTTER FROM INDEPENDENT SCHOOL DISTRICT #14 Ms. Schnabel stated the HR.A had received a letter from Independent School District #14 thanking them for the return of funds to the school district. 14. �RA BUDGET Ms. Schnabel stated other information items on questions raised � includes the HRA budget. The HR.A will be receiving a copy of the budget shortly. Will the HRA meet on March 13 at 6:00 p.m.? � � HOUSING & REDEVELOPN�N'P A�THORITY MTG FEBRUARY 13 1997 PAGE 14 Ms. Dacy stated they are planning to meet at that time. She will talk with Mr. Commers to verify the date and time. Mr. McFarland stated he would not be present for that meeting. 15. REMODELLING COUNSELOR Mr. Meyer stated he saw they were still looking for the Remodeling Counselor position. He asked if staff had any additional information. Mr. Fernelius stated they had received over 30 applications. The job closed on February 10. He will be reviewing those applications. Hopefully, there will be candidates to interview. If they are comfortable with someone, staff will then come back to the HRA for authorization to hire. Mr. Meyer asked how the process of combining with the City of Blaine worked. Mr. Fernelius stated this is going forward. They are still going forward with the full-time position. Ms. Dacy stated, per the HRA's advise during the last meeting, staff will ask if the candidate is willing to work part-time if Blaine does not complete their part of the program. Mr. Meyer asked if they had received more applications this time. Mr. Fernelius stated they do have more applications this time. He thought there were some candidates who reapplied. He did not know how many new applications were received. He thought the position as full-time made it more attractive. ADJOUItNN�NT : OTI N by Mr. McFarland, seconded by Mr. Meyer, to adjourn the meeting. UPON A VOICE VOTB, ALL VOTING AYE, VICE-CHAIRPLRSON SCI�TABLL DECLARED THE MOTION CARRIED AND THE FEBR'0'ARY 13, 1997, HOUSING AND REDEVIyLOPN�sN'P AUTHORITY MEETING ADJOURNED AT 8: 4 8 P. M. Respectfully submitted, � LV � Lavonn Cooper Recording Secretary