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HRA 08/14/1997 - 29802�"'� CITY OF FRIDLEY iT • � ����C�#���} �7i; �� _��������1+�i:\�Y�r(�7�;�*M!'��r��F��i+tiF��tN AIIGUST 14, 1997 CALL TO ORDER• Acting Chairperson Meyer called the August 14, 1997 meeting to order at 7:45 p.m. ;_ � • � Members Present: Members Absent: John Meyer, Duane Prairie, Jim McFarland Larry Commers, Virginia Schnabel Others Present: Barbara Dacy, Community Development Director William Burns, Executive Director Jim Casserly, Financial Consultant Rick Pribyl, Finance Director . . . . � i • l_� � • � �� � � • ' _�I��M � J�4* � � �1� � � �■-• • •• • � � • ��� ' �?1�_ •'�I.�I�M ' J�4 •' _ � MOTION by Mr. McFarland, seconded by Mr. Prairie, to approve the July 10, 1997 Housing and Redevelopment Authority minutes and the Joint City Council and Housing and Redevelopment Authority minutes as written. IIPON A VOICL VOTE, ALL VOTING AYE, ACTING CHAIRPERSON MEYER DECI�ARED THE MOTION ARRIED �1�TAIJIMOIISLY . • � �i � • � • `� � � ' ti� ` s_: � � � �� � � - -, . . . Mr. Prairie requested this item be removed from the consent agenda. . ��. � � � � -•-• • �� _ � • � • � ;� � � ��M •: � �_ ��� Ms. Dacy stated that she has received the companion agreement from the Department of Trade and Economic Development for HRA approval. Copies have been distributed to the Commissioners. � ����i � � � • � HOUSING & REDEVELOPMENT AUTHORITY MTG. AUGUST 14, 1997 PAGE 2 Ms. Dacy submitted additional expenditures for authorization in a memo dated August 14, 1997 to be included in the consent agenda. MOTION by Mr. McFarland, seconded by Mr. Prairie, to approve the Consent Agenda, items #2 and #3,as presented in the staff inemos with the additional expenditures as presented in the August 14, 1997 memo and the State of Minnesota Department of Trade and Economic Development Business and Community Development Division Grant Agreement #CCGP-97-0005-Z-FY-97, and to remove item #1 from the Consent Agenda. IIPON A VOICL VOTL, ALL VOTING AYE, ACTING CHAIRPLRSON MEYER DECLARED THE MOTION CARRIED UNANIMOII3LY. ACTION ITEMS: 4. R.FSOLUTION AUTHORIZING EXTENSIOIV OF THE CONTRACT FOR �X(''TTT4TVF T'TF(��TT�TTnrTC wrmu n�r�vr a�nTrarT DD�DLDTiL� Ms. Dacy stated that the proposed request is to extend the Contract for Exclueive Negotiations to November 1, 1997. The extension would allow N�PC to pursue approval from MEPC's Board for a one story complex of two 50,000 square foot buildings for a � total of 100,000 square foot building on the west end of the site for a high tech company. The extension will also enable the HRA to prepare an outline of the business terms for a development contract. Ms. Dacy stated that at a recent joint meeting with the City Council, it was determined that a one story building at the west end of the site would attract a high quality user and would still maintain adequate area for a multi-story office user. Mr. Meyer asked what type of control the HRA has over the use of the buildings five or ten years from now. Ms. Dacy stated that the zoning district provides the City with total control over the development and the specific uses. The master plan approved last year by the Council apecified the uses which were permitted and not permitted. Secondly, the development contract will be recorded against the property and will also contain requirements about the development. Mr. Meyer stated he was convinced that MEPC has done everything it could to develop the aite, but at the same time he sees this proposal as a step backwards when the metro area is in a renaissance of development. Ma. Dacy stated that the international contacts MEPC has was an � asset for the Lawson proposal, even though they chose St. Paul. Lawson is a tenant in a MEPC building in Dallas and was also building a campus in London. Although the original master plan � HOUSING & REDEVELOPMENT AUTHORITY MTG. AUGUST 14, 1997 PAGE 3 was the ultimate, the consensus from the joint meeting was that the tech flex building would not be a detriment, and would attract a high amount of employment. Mr. Prairie asked if there were two office contacts. Ms. Dacy stated that was correct. Mr. Meyer asked what MEPC plans to do in November. Ms. Dacy stated that they will propose the tech flex building to their board in September, which will give us the time in October to negotiate a development contract. Mr. Meyer asked if the HRA would have to approve the plans. Ms. Dacy stated that was correct. Mr. Casserly stated that the development agreement will allow the construction of 100,000 square foot building with the remainder of the site preserved for a multi story office user. Mr. Meyer stated that he was concerned about giving the impression that spec buildings are acceptable, and they may end up not being ^ fully occupied. Ms. Dacy stated that the market information presented by the developer and others is that the tech flex market is very strong and the concerns that the HR.A has may not materialize. Further, the development contract will contain protection for the HRA and has to be approved by the HRA. Mr. Meyer asked if MEPC is the exclusive agent. Ms. Dacy stated that is correct, but the development contract would ultimately replace the exclusive negotiation agreement, and would have to be approved first. MOTION by Mr. McFarland, seconded by Mr. Prairie, to approve Resolution Authorizing Execution and Delivery of A First Amendment to the Contract for Exclusive Negotiations by and between the Housing and Redevelopment Authority. IIPON A VOICE VOTE, ALL VOTING AYL, ACTING CHAIRPER30N MEYSR DECI�ARE'D THE MOTION CARRIED IINANIMOUSLY. �j . RF�C�T�TTTT(�TT �1�C�'PTT'ATl3 T-il?� TaY y�7v L��D mnv�L� r�vT„�nL� Tyiv' i"o Mr. Meyer stated that this resolution is similar to the resolution ^ passed in 1997 for the revolving loan program for housing rehabilitation programs. ^ HOUSING & REDEVELOPMENT AUTHORITY MTG. AUGUST 14, 1997 PAGE 4 Mr. McFarland asked how the proceeds of the loan were invested. Ms. Dacy stated that a cash flow analysis was prepared to govern how the loan would be drawn to serve the loan requests. Both the Council's loan and HRA funds are used to serve the program; how the funds are invested she cannot answer. The City's loan has reduced the necessity to use HRA funds to support the program. Mr. McFarland asked if the loans can be sold on the secondary market. Ms. Dacy stated there is a cost to do that. Mr. Casserly stated the cost is in the discount rate, and it is not advantageous for the HRA to do that. MOTION by Mr. McFarland, seconded by Mr. Prairie, to approve Resolution Adopting HRA Tax Levy for Taxes Payable in 1998. Mr. Meyer stated he voted against the resolution last year. While he supports the concept to improve the housing stock, he objects to some of the program requirements like the income amount and also use of public funds for some of the improvements. i� Mr. Prairie stated that he voted against the resolution last year philosophically. Since then, the program has been initiated. To discontinue the program now would unravel the program. Mr. Meyer concurred with Mr. Prairie. He noted that two of the members of the Commission were absent who supported the resolution last year. To vote against the resolution without all of the members present did not seem fair. Ms. Dacy noted that the loan program is modeled on the State's MHFA rehab program including income limits and the type of eligible improvements. Mr. Burns stated that as a practical matter, most of the improvements are code related. UPON A VOICE VOTE, ALL VOTING AYB, ACTING CHAIRPTRSON MEYER DBCLARED THE MOTION CARRIED DNAI�IMOIISLY. INFORMATION ITEMS: 6. HIGHWAY 65 STREET LIGHTS Ms. Dacy stated that the motion to approve the installation of street lights along Highway 65 failed on a tie vote at the July � 28, 1997 City Council meeting. The lights will therefore not be a part of the project. MnDOT has agreed to replace the dilapidated portions of the guard rail. � HOUSING & REDEVELOPMENT AUTHORITY MTG. AUGUST 14, 1997 PAGE 5 Mr. Meyer asked if the chain link fence along University Avenue could also be addressed with the State. Mr. Burns stated that the Council is evaluating removing the fence on the east side pending contact of the insurance consultants regarding the liability issues raised if it is removed. Mr. Burns stated that he is working on a business retention survey which will include questions regarding city issues and redevelopment issues. The survey may be a phone survey or mail survey with intense call backs, but that has yet to be determined. Mr. Meyer asked if the grass maintenance will also be addressed by the Council. Mr. Burns stated that it is also a high priority, and as we search for additional revenue sources, the image or appearance issues are a top priority for expenditure. 7. PASCHKE TIF REOUEST Ms. Dacy stated the construction has progressed well since last reported. The development contract is being prepared by Mr. � Casserly and will probably be on a future agenda. ,j�,TnTTR'I�TMF.'ATT • TI by Mr. McFarland, seconded by Mr. Prairie, to adjourn the meeting at 8:50 p.m. IIPON A VOICL VOTE, ALL VOTING AYT, ACTING CHAIRPERSON MEYSR DECLARED THE MOTION CARRIED UNAWIMOIISLY. , Respe�£t�ally Submitted, Barbara Dacy Acting Recording !"�