HRA 10/09/1997 - 29803�
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CITY OF FRIDL$Y
HOIISING AND R�DEVELOPN�NT AOTHORITY MEETING
OCTOHER 9, 1997
CALL TO ORDER:
Chairperson Comers called the October 9, 1997 Housing and
Redevelopment Authority meeting to order at 7:48 p.m.
ROLL CALL:
Members Present:
Members Absent:
Larry Commers, Virginia Schnabel, John Meyer
Jim McFarland, Duane Prairie
Others Present: William Burns, Executive Director
Barbara Dacy, Community Development Director
Jim Casserly, Financial Consultant
Craig Ellestad, Accountant
Richard Pribyl, Finance Director/Treasurer
Grant Fernelius, Housing Coordinator
Margaret Metzdorff, Remodeling Advisor
Craig Christensen, Semper Development
John Kohler, Semper Development
Leslie Jowett, MEPC American Properties
Dave Jellison, MEPC American Properties
Dennis Homel, Moore Lake Apartments
Norma Swanson, Theisen B. Partnership
Art Swanson, Theisen B. Partnership
Ellen Beeche, Semper Development
Jerry Paschke, Paschke Properties
William Hogan, 365 Mississippi Street
APPROVAL OF AUGUST 14 1997 HOUSING AND REDEVELOPMENT AUTHORITY
MINUTES:
MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the
August 14, 1997, Housing and Redevelopment Authority minutes as
written.
HOIISING & RgD�VELOPMENT A'OTHORITY MTG. OCTOB$R 9, 1997 PAG� 2
� '�PON A VOIC� VOT$, ALL VOTING AY$, CHAIRP$RSON CONII�RS D$CLARED
TH� MOTION CARRISD UNANIM0�3LY.
CONSgNT AGENDA:
1. REVENUE AND EXPENSES
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the
Consent Agenda.
�PON A VOIC$ VOT�, ALL VOTING AYE, CHAIRP$R30N COr�RS DECLARED
TH� MOTION CARRIED UNAN'IMOIISLY.
ACTION ITEMS•
2. PRESENTATION BY DAVE JELLISON. MEPC AMERICAN PROFERTIES
Mr. Jellison provided an update of the master plan for the
Fridley Executive Center site and the status of the pending
contacts. This master plan has been switched to 100,000 square
feet of office service space. Pent Air Corporation was still in
� the plan as they have reconsidered the Fridley Campus. Pent Air
Corporation is also looking at an existing building in Arden
Hills. The original plan for Pent Air included the plan areas 4,
5& 6. With City approval, number 5 is a 60,000 square foot
corporate office space. Space 6 is a restaurant. Both fit the
parking ratios and land requirements of the site. The Hilton
Corp looking as a possible hotel site which would be similar to a
Hampton Inn concept, a business quality hotel. A representative
from Hilton was here today to look at the site.
Ms. Schnabel asked Mr. Jellison to identify what numbers 4 5& 6
are.
Mr. Jellison stated number 4 of the original plan is a possible
restaurant site. Number 5 is a prototype Hampton Inn. Number 6
of the plan includes a bank with drive up tellers and second
floor office facility.
Ms. Schnabel asked, "Under the new proposal there wouldn't be a
restaurant?"
Mr. Jellison stated, "If Pent Air comes back and says this is our
� first choice. We left this open, that the Fridley HR.A would have
to approve the office portion. If we shift Pent Air to number 3,
HOIISING & RBDEVLLOPI�NT AUTHORITY MTG OCTOBSR 9 1997 PAG� 3
� you would still have other options open. We originally came with
them going on site 1 but they didn't want to put their corporate
headquarters on the far end of the site.
Chairperson Commers asked about the status of MEPC as a result of
the news of MEPC selling its United States portfolio.
Mr. Jellison reported, presently MEPC is going to spin off
operating groups of Australia and US. We are part of a billion
to 1.2 billion dollars which will continue to operate, as two
separate operating companies. Presently the US and Australia are
30% of the net asset of MEPC but 50% of its income. London has
not been doing the same as they have experienced a slower
turnaround. Our plans are to continue business as usual. We
have 250 million in development right now. All our funding is
held in the US operation.
Chairperson Commers asked will there be a new owner of MEPC? We
don't know what their philosophy is or what they will want to do?
Will you continue to develop the 6000 tower? o
� Mr. Jellison reported there were 6 buildings sold. Everything
that was not redevelopable, that was at its maximum value was
determined to be sold off. We have just finalized all the
bidding of the new 6000 tower. I can't tell you what our entity
will be when it is all done. We have a number of capital sources
that would like to keep the management team in place. The Colony
3 is a 385,000 sq. ft tower already under construction. We are
operating business as usual. If Pent Air says we are ready to
go, we are ready to proceed also. Pent Air would be a tenant to
lease the building as well as the tech-plan.
Chairperson Commers stated, "When we entered into the deal with
you we did so after looking at how you manage your property. If
we anticipate a different management, it may have an effect on
how we think about the plan."
Mr. Jellison stated we are fortunate that we receive many calls
stating tenants would like to get back into a MEPC building. We
plan to continue to operate as we always have. However, I can't
guarantee you that nothing will change. There aren't many
companies that have been in the US for 20 years that have only
sold 6 buildings out of the size portfolio that we manage. We
� can't buy real estate because there is so much demand, it only
makes sense for us to develop. Everything we have developed in
HOIISING & REDEVELOPMENT AUTHORITY MTG. OCTOBgR 9, 1997 PAGE 4
n High Tech facilities have leased out very quickly.
Ms. Schnabel asked when will he have the High Tech proposal
Mr. Jellison reported he will have a site plan in approximately
2.5 weeks. Landscape and elevations will be ready shortly
thereafter. There will be glass all the way around the front of
the building, with 16 foot clear. The back area would be the
service door area. One door for shipping, one for receiving,
trash etc stored inside the building. A great image with a great
location. The difficulty is to build a building with 5 parking
stalls per thousand if it is all office. If it goes 50% high
tech and 50% office we need to accommodate the truck
requirements. We will look at 2-3 different size tenants as well
to see if we can meet all these needs before building.
Ms. Schnabel asked what is the anticipated construction date?
Mr. Jellison replied we would try to start construction this
winter and blacktop in the spring.
� Mr. Meyer stated that the MEPC news would have a chilling effect
on those looking at the High Tech site.
Mr. Jellison doesn't anticipate any negative feedback. A billion
and a half dollar real estate corporation with very little debt,
there aren't many of us around. Many buildings have been turned
back to insurance companies and financiers. MEPC has not had any
concerns raised from its tenants. Is it disturbing for us, yes.
Many people have gone through change for example 3M and the
Imation spin-off. MEPC has been sheltered but Mr. Jellison does
trust the MEPC management. In the long run we will continue to
do business as before. We have had many opportunities to buy
office buildings in other parts of the US but with the slower
results in the UK, we were not able. Mr. Jellison is not afraid
of the new MEPC. Think of real estate trusts, most want to get
to 1 billion dollar mark to justify themselves. MEPC is already
over 1 billion and Mr. Jellison doesn't see MEPC losing any
management people.
Mr. Burns asked Mr. Jellison to speculate, who are you talking
about purchasing MEPC, national companies or perhaps Twin City
companies.
/�
Mr. Jellison stated we are talking about financial institutions
HO�SING & REDEV�LOPMENT AUTHORITY MTG OCTOBER 9 1997 PAGE 5
� that would like to participate. National o� Twin City companies
are probably too small to participate. We are not likely to
become part of OPUS, for example. We may become part of a major
financial institution.
3. REOUEST FOR LETTER OF SUPPORT FOR MHFA APPLICATION• DENNIS
HOMEL
Mr. Fernelius stated Mr. Homel has a purchase agreement to buy
the Moore Lake Apartments, a 64 unit complex located at 5701
Central Avenue and 995 Lynde Drive. The current owners want to
sell the property and do not want to invest additional money into
the property. The $1.625 million sale is contingent upon
Minnesota Housing Finance Agency (MHFA) financing for both a
first mortgage to acquire the property and a second, deferred
mortgage to make substantial improvements to the buildings and
grounds. The Anoka County Assessor has the property valued at
$682,328.
Purchase Price
Rehabilitation
� Financing and Carrying Fees
Misc. Fees
Total Uses
SOURCES
MHFA lst Mortgage
MHFA ARIF Loan °
MHFA Incentive Loan
Owner Equity
Total Sources
$1,625,000
689,080
31,394
23,200
$2,368,674
$1,397,423
300,000
480,000
191,251
$2,368,674
The plans include roof replacement, windows, boilers and water
heater replacements, siding, regrading around the perimeter of
the building, and upgrading units. 75%of the units are required
to be maintained as affordable housing with a 1 bedroom unit
renting at $458 and a 3 bedroom at $ 705.
Mr. Fernelius stated Mr. Homel does have a pretty good track
record with a project similar to this one in Anoka and one in St
�� Paul. Mr. Fernelius visited the Anoka project and the City
reported positively on the project. The letter request�d is to
HO�SING & RgDEVELOPN�NT A'QTHORITY MTG. OCTOBER 9, 1997 PAG$ 6
� support his deferred loan application
Ms. Schnabel asked, at this point the HRA has not been asked to
contribute funds to this project?
No, Mr. Fernelius stated with regard to HRA financing, the owner
could apply for the Last Resort Rental Loan Program should MHFA
be unable to fund his entire deferred loan request of $300,000
but we are not committing dollars this evening.
Ms. Schnabel asked how does the HR.A become involved in writing
this letter and will the City Council also show their support?
Mr. Fernelius stated it is a typical requirement showing support
of the project.
Ms. Dacy added the MFHA likes to see if the City supports the
concept of the project. �
In this case the Council will not review the issue at this time.
This is a housing issue so it is referred to the HR.A.
� Chairperson Commers suggested staff refresh our memory about the
last resort program and report back at a future meeting.
OM TION by Ms. Schnabel, seconded by Mr. Meyer, to approve and
authorize Mr. Burns to draft a letter showing support to Mr.
Homel's MHFA application in the rehabilitation of the Moore Lake
Apartments.
IIPON A VOICE VOT$, ALL VOTING AY$, CHAIRPER30N CONIl�RS D$CLARED
THg MOTION CARRI$D IINANIMO�SLY.
4. REVIEW PROPOSED WALGREENS DEVELOPMENT PLAN; NORTHEAST
C"(�R�'R OF UNIVERSITY AVENUE AND MISSTSSIPPI STREET
Ms. Dacy presented a review of a plan proposed by Walgreens at
the Northeast Corner of University Avenue & Mississippi Street.
The area consists of 2 single family homes and an existing
building located on 3.13 acres. In 1991, a multi-tenant plan
was approved. This first proposal included a Burger King drive
through around the building and a Walgreens pick up window as
well. This plan was 27,745 square feet, however, the plan did
� not proceed. A second plan by Wagner Development was 1,000
square feet less.
HnrreTN� � Ar�n�r.�ptut�rrr AT7T�i0RITY H1TG_ OCTOSi�R 9. 1997 PAGE 7
Ms. Dacy stated the current proposal is a freestanding 13,905
square foot Walgreens building on 2.88 acres. The face brick
exterior has stucco accents with the entrance oriented toward the
intersection. This proposal does not include one of the two
single family lots. There is a full movement access area and a
right-in right-out drive west of the entrance. A pick up window
is included on the east aide of the building. A detention pond
is proposed on the rear side of the building. The basis for
review is that the property is zoned S-2, Redevelopment District
which requires review not only by the Planning Commission and the
City Council, but also by the HR.A. The intent is to allow for
mixed use development, maximum flexibility and determination of
the most appropriate plan for the best interest of the City. The
requested action is to change the 1991 plan to the proposed,
single entity and smaller building. The site is located in Center
City TIF District #1. The purpose of the district is to
accomplish a redevelopment project which better utilizes vacant
land, increases tax base and promotes proper use of plan. Staff
concerns are under utilized areas in the site. There is a lot of
land area used for parking, asphalt for the drive-through use
� dictating the building be located in the center of the site. It
is possible to have the siltation and detention requirements
located underground. This is a single use versus a variety of
commercial uses. Walgreens has had very good success with this
type of approach with the pick up window. It is a smaller
project and there are advantages to having a smaller project as
there is more green area. The City should revisit the vision.
The Planning Commission will review the plan on October 15. The
City Council will review on October 27th. There is a 60 day
deadline of Nov. ilth.
Staff recommends denial of the revision.
Chairperson Commers asked about the western driveway. Is this
practical? '
Ms. Dacy stated staff does not recommend approving the location
of the driveway as proposed based on the traffic analysis done 5
to 6 years ago. We are concerned this could cause additional
interruption. The area between the driveway and the intersection
is not appropriate.
� Ms. Dacy also stated the tax increment of $13,000 was an early
estimate. Based on information given by petitioner, the
HOUSING & REDEVELOPMENT AUTHORITY MTG OCTOHgR 9 1997 PAGE 8
increment is actually $23,000 -$24,000. Walgreens is also
proposing to do the acquisition and demolition.
Mr. Commers asked originally did we talk of taking another
eastern property on Mississippi Street?
Ms. Dacy stated early in the process that was correct. When the
plan was approved Anoka County was ok with the driveway location
as proposed. This plan includes the first house on Mississippi
and then the house directly behind it on 66th.
Craig Christensen with Semper Development and John Kohler,
Architect, and Norma Swanson the property owner addressed the
Commission.
Mr. Christensen stated Walgreens has not requested public
assistance on the project. It appeara that TIF discussion is not
relevant. Semper Development believes there are advantages to a
smaller project than proposed 6 years ago. There will be a lot
of green space, buffering and landscaping the neighborhood area.
We are able to comply with waterahed requirements in a less
� costly manner. We have spoken with many neighbors concerning the
` project who are in favor of this project. We will create a very
long term, stable, national tenant making a long term commitment.
�
Mr. Commere asked who will own the building?
Mr. Christensen stated Semper Development will own and develop
the property with Walgreens as a long term lease.
Mr. Kohler reported the 14,000 sq. ft project has most of the
activity in the front, away from the residential area. The drive
through window is only for pick up of called in prescriptions. A
number of the neighbors have been contacted and requested the
fence extension and to keep the green space between commercial
and residential. The detention area will also become a good
buffer and be maintained, increasing the pine trees and replacing
the existing trees. Other comments from the neighbors were, they
want to see a project that will stay in the area for a very long
time rather than a tenant that comes and goes. The building will
be face brick on all sides costing about $72 a square foot to
construct. There is a tall glass front to the building with all
activity taking place in the front of the building.
Mr. Commers asked if there are any pictures of existing Walgreens
�OIISING & REDEVELOPMENT AUTHORITY MTG OCTOHLR 9 1997 PAGE 9
� facilities as proposed.
Mr. Kohler stated this design has a new look compared to the
existing facilities. In Brooklyn Park, there is an example of a
new development.
Ms. Dacy stated staff has taken a video of the White Bear Lake
Walgreens building.
Mr. Kohler stated the proposed design ia different from the White
Bear Lake Walgreens.
Ms. Schnabel asked, will the detention area be mowed?
Mr. Kohler stated yes. There is a drain in the detention area
which does meet the Rice Creek Watershed requirements. The soil
is sand so it will not hold water. Since 1991 Watershed
requirements have been upgraded and so has this plan.
Ms. Schnabel stated it appears there is an enormous amount of
parking stalls.
^ Mr. Kohler stated the parking stalls meet the City requirements,
94 parking spaces is a lot and they would like to make changes to
that requirement.
Ms. Dacy stated there are two issues to consider. The drive
through location and the circular route around the building
hampers future development. The drive through makes the building
be placed in the middle of the lot. There is a site further
north where this development will fit fine. The second issue is,
does the City see this plan as part of the vision for the
downtown area? Perhaps the HR.A doesn't know what they want on
this site right now, but Walgreens is filing an application right
now.
Mr. Commers stated the HRA approved a plan at that time, for that
developer. We don't have any other plan that we have approved
since.
Ms. Swanson, the property owner stated she has tried to develop
this property for 20 years. In the meantime Anoka County has
condemned numerous plans. The City has made it very difficult to
n sell this property. The Swanson family feels the property needs
to be sold as a family member has passed away. Ms. Swanson is a
uOIISING & RED�VELOPMENT AUTHORITY MTG OCTOH$R 9 1997 PAGE 10
n reaident of this neighborhood and feels that this plan is a nice
attractive plan for the neighborhood. If this plan does not go
through, the current building will remain empty as Ms. Swanson
has lost her tenant.
Mr. Commers asked Jim Casserly, Financial Consultant, for his
analysis of the project.
Mr. Casserly is not sure of the role of tax increment in the
project since the applicant is not asking for tax increment. It
is clear this project would generate $40 -$45,000 in taxes.
Other proposals in the past would probably generate $60-$70,000
due to the project density. This would help pay the existing
debt service on the lot.
Mr. Meyer stated this Walgreens proposal is noticeably superior
to the prior plan as he was concerned about the traffic density
with the prior plan. Mr. Meyer is also impressed with the green
areas and respect of the neighborhood. Therefore it appears to
be the most ideal use of this property. If 13,000 square feet
needs 94 parking spaces, we would have needed 184 parking spaces
^ of 24,000 sq. ft, as well as the drainage area, making Mr. Meyer
wonder how would we fit that development on this site. Therefore
Meyer is in favor of proceeding with this development.
Ms. Schnabel concurs with Mr. Meyer as she does not see a single
user as a disadvantage. It certainly is a nice clean
development. The amount of asphalt is a concern, especially 90
some parking spaces. Hopefully one of the other boards can make
an accommodation concerning the asphalt. Perhaps some
imaginative landscaping with additional plantings could be done.
Ms. Schnabel respects staffs opinions but concurs with Mr. Meyer
and is in favor of proceeding with this development.
Mr. Commers asked Mr. Casserly with regards to the project being
in our TIF district, what do we have to do?
Mr. Casserly stated the district would have to be re-certified,
removing these parcels and create a new district.
Mr. Burns stated that some of this decision is in the hands of
other boards, however the vision of this sight is the HR.A instead
of the Planning Commission. In the past 9 years, this site has
i� not been established as a top priority. The economy has more out
' there to consider right now in speculation and urges the HRA to
HOIISING & RLDEVELOPMENT A�THORITY MTG. OCTOB]3R 9, 1997 PAGE 11
n consider these issues. Mr. Burns recommended looking at this
aite as well as other areas in regards to development.
Ms. Dacy stated Walgreens has filed an application and the City
is required to react to that application. On the other hand, we
are in the position of reacting rather than proacting as in the
case of the Lake Point Development. The petitioners are
frustrated as they have put together a plan which is compared to
a previous plan. However staff is in the position of reacting
and perhaps there may be an option that you may like more.
Ms. Swanson stated it makes her feel very bad that site is not a
top priority after working many times to put together a plan to
present to the City.
Ms. Dacy stated from a resource standpoint, the City has had to
prioritize its work.
Mr. Commers stated staff is asking us to deny this request. Mr.
Commers felt that at this point, based on the fact that there is
not a real concrete long term vision, making it difficult to
n tell Mrs. Swanson she cannot go forward with this development.
Perhaps we can lay this aside until the next meeting.
Ms. Dacy stated the petitioner would have to consent to a delay
in the 60 day, November llth timeframe. There is time for
Council to have two meetings on this topic, but not for the HRA
unless a special meeting is called.
OM TION by Mr. Meyer, seconded by Ms. Schnabel to recommend the
approval of the Walgreens project to the City Council.
�PON A VOICL VOTL, ALL VOTING AYL, CHAIRPPRSON CONIl��RS DECLARED
THE MOTION CARRIED IINANIMOII3LY.
5. RESOLUTION AUTHORIZING EXECUTION OF DEVELOPMENT CONTRACT;
GERALD PASCHKE
Ms. Dacy stated the resolution is to authorize the execution of a
development contract providing up to $60,000 of tax increment
assistance via a pay as you go approach. Construction has
progressed per the code requirements. Should the HRA wish to
approve the project, a motion to approve the resolution
� authorizing the execution of the development contract is
recommended.
�
HOIISING & RBDEVELOPMENT A�THORITY NlTG. OCTOBER 9, 1997 PAGE 12
Mr. Commers asked Mr. Paschke why has it been so difficult to
find out what is going on with this project?
Mr. Paschke reported the contractor had trouble reaching the
inspector and needed to fill the street over the weekend. It
was dug it out for inspection and refilled again.
Ms. Dacy stated it appeared that the sewer and water construction
proceeded prior to inspection. However this issue has been
addressed and inspections have taken place.
Ms. Schnabel asked what happens if there is a default on the
note, how can you pay it in full?
Ms. Dacy stated the proposed contract requires completion of the
project prior to issuing a Limited Revenue Note in the amount of
$60,000. The note requires two payments per year to the
developer beginning on August 1, 1999 and ending on August 1,
2005. The amount of each payment ia defined by the note to be
the lesser amount of 90% of the tax increment generated or the
n prescribed amount in the note of $6,242. On the maturity date of
the note on August 1, 2005, if there is any unpaid portion
remaining, the note will be deemed to have been paid in full.
The HR.A. will pay on the note up to the tax increment. I f there
is a gap, it will be noted paid in full. At a given date we say
the note is deemed paid in full.
Mr. Casserly stated this language is in all notes as a
termination date is required. Valuation, tax rates and class
rate risks are passed on to the note holder.
OM TION by Ms. Schnabel , seconded by Mr. Meyer to approve the
resolution authorizing the execution of the development contract
between HRA and Gerald Paschke
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON CONIl��RS DLCLARLD
THL MOTION CARRIED IINANIMO�SLY.
6. PUBLISHING AGREEMENT WITH TWIN CITIES BUSINESS MONTHLY
Ms. Dacy stated since the September mailing of the proposal by
Twin Cities Business Monthly Magazine, staff was hoping to come
� up with 3 users to participate in the Twin Cities Business
Monthly. Staff recommendation was to proceed with the project
HOIISING & REDEVELOPN�NT A'OTHORITY MTG. OCTOB�R 9, 1997 PAG$ 13
n with the understanding that HR.A's contribution would not exceed
$5,000. MEPC would provide $5,000 and a variety of businesses
would be contacted to provide additional advertising support. In
order to complete the project, a minimum of $15,000 is required
by Twin Cities Business Monthly. Because of the timing of the
proposal, we are hampered as the Chamber is publishing a piece as
well, creating competition. MEPC American Properties has
indicated a willingness to increase its sponsorship to $7,500 to
provide 50% of the minimum $15,000. It is therefore proposed
that the HRA provide the remaining match of $7,500. Medtronic,
Onan and Target will be contacted to provide sponsorship or
advertising supporting the piece. A brief outline for the
Fridley Special Section of Twin Cities Business Monthly was
distributed. The publication will feature Fridley as receiving
high marks for fiscal responsibility and progressive vision; a
location, labor force and a"can do" business attitude as well
as highlight existing corporations such as Medtronic, Target and
Onan. The Publishing Agreement with Twin Cities Business
Monthly was also distributed. Should advertising and sponsorahip
revenue fall below projections and the project end prematurely a
$2,000 "kill fee" will be assessed to the City. Part of our
n money will go towards re-prints to be utilized to attract.people
to the community. Medtronic did exhibit some interest in
becoming a sponsor.
MOTION by Ms. Schnabel, seconded by Mr. Meyer, to authorize the
executive director to sign the publishing agreement for no more
than $7,500 for the 8 page feature of the Twin Cities Business
Monthly.
�PON A VOIC$ VOTE, ALL VOTING AY�, CHAIRPERSON CONIl�RS DECLAR$D
THE MOTION CARRIBD UNANIMOII3LY.
ZNFORMATION ITEMS:
7 REMODELING PLANBOOK
Mr. Fernelius stated Ms. Metzdorff has been the principal in this
project. This ia a priority identified for 1998. It is
important to raise the awareness of remodeling. One of the
program challenges is that we are looking for ways to improve the
1950-style rambler which lacks the modern amenities that people
desire. We are proposing to create a remodeling book for four
� types of ramblers present in Fridley. Perhaps remodeling the
kitchen, a master bedroom or adding more living space. The
HOIISING & RLDEVELOPMENT A�THORITY MTG. OCTOH]3R 9, 1997 PAGF 14
^ publication will detail a brief description of plans, code and
zoning issues, information on loan program resources,
definitions, and whether this is a do-it-yourself project or a
contractor project. Staff has revised the figures on this
project from $12,000 to an in-house project at a range of $2,500
to $3,000. This could be available for the spring remodeling
fair.
Ms. Metzdorff has researched a 3D software for clients to utilize
and provided a demonstration of its use. Ms. Metzdorff displayed
a typical Fridley rambler demonstrating the software to display a
change in the floor plan. A front porch bump-out was also
demonstrated giving a home a new definition to the outside
appearance.
Mr. Fernelius stated the concept of this program came from the
Longfellow Neighborhood Planbook that focused on the bungalow
style home. This would be a helpful, hands-on project benefiting
many of the residents in Fridley.
Mr. Meyer stated he continues to be disappointed in the scope of
n the work done in the remodeling program. The plan book is useful
information but has little or nothing to do with addressing the
issue of substandard housing. Mr. Meyer commends the concept of
a plan book, a public service to the community. The $55,000
maximum income limit is something Mr. Meyer criticizes in the
current program. We must be more realistic in defining our
income requirements for this money.
Ms. Dacy stated on the other side of°that, realistically when
someone is going to the expense of remodeling a kitchen or
bathroom, new code requirements are addressed at that time.
Therefore some of your objectives are being accomplished.
g , �-TnTT�TNC� REPLACEMENT PROGRAM UPDATE
Chairperson Commers inquired if there has been inquiries
received?
Mr. Fernelius stated he is receiving calls everyday and is
optimistic that something is going to happen on some of these
sites soon.
� Mr. Meyer asked why do we have this $500 non refundable
participation fee? The requirements and references seem
KOIISING & R$DEVELOPMENT AUTHORITY MTG OCTOBER 9, 1997 PAG$ 15
^ sufficient since the HR.A determines a plan is not acceptable, it
does not seem to be a good selling point for our program. If we
don't get any real offers, we may want to consider dropping the
$500 fee. Are we a little rich in our asking price of our lots?
Mr. Fernelius stated we are trying to ensure that folks coming
here are serious because staff spends a lot of time meeting with
the builder or developer. These fees are collected in Richfield
and the builder treats it as a cost of the program. Based on the
information Mr. Fernelius has seen, the prices seem to be on the
bottom end of the market. The price seems to be fair and there
isn't a lot of available land in Fridley.
9. MARGARET METZDORFF'S RESIGNATION
On September 24th Margaret Metzdorff submitted her resignation
notice as Remodeling Advisor. Her last day of employment is
November 4th.
Chairperson Commers asked what will we do with Margaret leaving?
^ Mr. Fernelius stated the City is checking with surrounding areas
to see if it is possible to share this position. Ms. Metzdorff
stated that by offering a full-time position with benefits you
can obtain a well rounded applicant with the ability to support
other projects during the off season for remodeling. The
greatest negative aspect of a sharing situation was to be gone
from your poaition for five days while serving the other city.
Mr. Fernelius reported they were aware of this short-coming and
would work hard to address those issues.
o�x$R s�si�ss:
Chairperson Commers asked about the Moore Lake Racquet Club
settlement.
Mr. Pribyl, Finance Director, stated the assessor has determined,
because of the competition in the market with the introduction of
Lifetime Fitness taking a major portion of their business, the
business has actually decreased.
Mr. Commers aslt.ed what impact will this have on the tax increment
district?
�
Mr. Pribyl will take a look at that and report back.
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HOUSING & REDEVELOPMLNT A'QTHORITY MTG OCTOBER 9 1997 PAGT 16
Chairperson Commers mentioned the memo about the Lake Pointe
Project and Changes to Intersection by MnDOT. He also asked about
the Anoka County Request for Levy Involvement.
Mr. Pribyl stated this levy is for Anoka County, not the City.
The HRA has acted on the City's levy.
Mr. Burns stated Council has completed their action on the levy
as well.
Mr. Commers asked we have made 52 loans this year? What happens
with this Hyde Park area?
Mr. Fernelius replied yes, with only 4 to Hyde Park. It comes
down to reminding people that the programs are out there. Survey
results indicated some are concerned about the condition of their
neighborhood and don't want to invest.
Ms. Dacy reported, this year we have been tied up with many
projects. We do constantly advertise and continue marketing
n efforts on the program.
Chairperson Commers stated this was the specific focus of the
program, the rehabilitation of the Hyde Park neighborhood. We
need to get a good handle on why we aren't addressing Hyde Park.
Mr. Fernelius stated the City has acquired a number of lots in
that neighborhood. Redevelopment and investment in the 3 new
houses should bring some spin-off.
Mr. Meyer added the size of the loans in Hyde Park are
significantly lower that those of the others. It must be the
money, their income. If we look at this, and are concerned about
Hyde Park, are there other ways to "sweeten the pie", be more
liberal, perhaps drop the income limit to a certain point if our
objective is to improve the housing stock. Will this accomplish
our goal?
Mr. Pribyl presented additional expenses needing approval.
V n r Descrintion Amount
^ Appraisal Engineering Appraisal 1545 75th Ave 275.00
Herbst & Sons Housing & garage removal 6,000.00
�
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/"1�
HOIISING & R$DEVELOPMENT A�THORITY MTG. OCTOB�R 9, 1997 PAGE 17
Margaret Metzdorff Mileage
Tautes, Redpath & Co. 1996 Audit
Total:
57.66
2,542.00
8,874.66
Mr. Burns reported the demolition expense was for the property
located at 5800 2nd Street.
MOTION by Ms. Schnabel, seconded by Mr. Meyer to approve the
additional expenses as presented by Mr. Pribyl.
'�PON A VOICE VOT$, ALL VOTING AYg, CHAIRPER30N COI�IlKERS DECLAR$D
TH� MOTION CARRIED �N'ANIMOIISLY.
Mr. Burns reported he is in the process of formalizing a
business survey and is distributing to the commissions for their
input.
� � • ���r �
OM TION by Mr. Meyer, seconded by Ms. Schnabel, to adjourn the
meeting at 10:15 p.m.
UPON A VOICB VOTE, ALL VOTING AYE, CHAIRPLRSON CONIIKERS DECLARED
THF MOTION CARRIED AND THE OCTOBER 9, 1997, HOIISING AND
RLDEVELOPMENT AOTHORITY MELTING ADJOIIRNED AT 10:15 P.M.
Respectfully aubmitted,
� ��� �
Debbie Kidder
Recording Secretary