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HRA 12/11/1997 - 29805� CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING DECEMBER 11,1997 CALL TO ORDER: Chairperson Commers called the December 11, 1997, Housing and Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL: Members Present: Virginia Schnabel, Jim McFarland, Duane Prairie Members Absent: Larry Commers, John Meyer Others Present: William Bums, Executive Director Barbara Dacy. Community Development Director Jim Casserly, Financial Consultant Grant Femelius, Housing Coordinator � Craig Ellestad, Accountant APPROVAL OF NOVEMBER 13. 1997. HOUSING AND REDEVELOPMENT AUTHORITY MEETING: M TION by Mr. McFarland, seconded by Mr. Prairie, to approve the November 13, 1997, Housing and Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA: 1. RESOLUTION AUTHORIZING AN INCREASE IN COMPENSATION FOR FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY EMPLOYEES FOR THE 1998 CALENDAR YEAR 2. AGREEMENT FOR LEGAL SERVICES WITH KRASS MONROE. P.A. 3. RESOLUTION AUTHORIZING RELEASE OF DEVELOPMENT CONTRACT WITH UNIVERSITY AVENUE ASSOCIATES �, 4. APPROVE 1998 MEETING DATES � HOUSING � REDEVELOPMENT AUTHORITY MTG., DECEMBER 11,1997 PAGE 2 � 5. REVENUE AND EXPENSES Mr. Ellestad distributed copies of his December 11, 1997, memo outlining additional expenses for approval. MOTION by Mr. Prairie, seconded by Mr. McFarland, to approve the Consent Agenda, including the additional expenses as outlined in Mr. Ellestad's memo dated December 11, 1997. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: ' NONE INFORMATION ITEMS: 6. CONCEPT PROPOSALS FOR AGREEMENTS WITH MEPC AMERICAN PROPERTIES Ms. Dacy stated MEPC is proposing to develop a 100,000 square foot tech flex building on the west end of the Fridley F�cecutive Center site. The proposed project will entail about 9 acres out of a total of 33 acres at the northeast comer of I-694 and Highway 65. Unless they hear to the contrary, staff would like to proceed to negotiate with MEPC on two contracts. One contract is a redevelopment contract to enable this construction to proceed. The second contract would outline the terms of how MEPC would act on behalf of the HRA to market the remainder of the property. Ms. Dacy stated the tech flex building would be located at the west end of the site on approximately 9 acres. This would leave about 15 acres for multi-story oifice buildings and multi-story ramps and about 8 acres of commercial land for a hotel site and restaurant site. Staff is positive and enthusiastic that, once the tech flex building is constructed on the site, it will attract more interest to the site and possibly attract a commercial entity such as a restaurant. Ms. Dacy reviewed the terms of the redevelopment contract. The contract will be between the HRA and MEPC American Properties. The site is approximately 9 acres at the west end of the site. They are proposing to sell the site at $2.50 per square foot. They hope the contract can be signed by the end of January, closing on the property by April 1, and construction to initiate on May 1. Staff anticipates that the structure will be completed by January 1, 1998, but are allowing additional time in case of unforeseen � events such as a strike, labor shortage, etc. An assessment agreement is a typical part of development contracts to set a minimum market value for the project. That HOUSING & REDEVELOPMENT AUTHORITY MTG., DECEMBER 11,1997 PAGE 3 assessment would be enforced through the.life of the TIF district. If MEPC cannot complete any portion of their responsibilities, a right of reverter will be included for nonperFormance. At closing, the HRA would provide title commitment and convey the property by quit claim deed. The contract will not be as signable until a certificate of completion is issued. Based on the terms and schedules, staff believes that the May 1 start date can be achieved and anticipate construction to begin at that time. Ms. Dacy stated the second contract is a listing agreement with MEPC. The title has been changed to a Restated Contract for Exclusive Negotiations. They had executed one with MEPC over the last 18 months which has expired. This would be between the HRA and MEPC for a term of one year. Because this applies to the balance of the site minus the 9 acres for the tech flex building, what is left is the area for the multi-story office, multi-story parking, and commercial. The contract restates the purchase prices that were in the original contract which is 50% of their market value for the office portion and 75% for the commercial portion. The one-year contract can be renewed if both parties agree for a 6-month term. Staff has also proposed a termination procedure that, within 60 days of a sale, transfer, or assignment of MEPC American Properties, they have to submit a notice to the HRA as to when that sale would occur. The agreement would enable the HRA to evaluate the new company's abiliiy to capitalize a project, who they are going to hire for development staff, and what their policy and approach is for holding � and leasing assets. MEPC had the ability to self-finance and their vision for the site was consistent with our vision. Ms. Dacy stated the redeveloper responsibilities include submitting site plans for approval, working with the HRA and staff, achieving plat approval, etc. The HRA is responsible for completing the Highway 65 intersection improvements which will be underway by then and referring all third party inquiries to MEPC. They have obtained the indirect source permit and have done all the environmental work and analysis. These responsibilities are not new to the HRA. Ms. Dacy stated joint responsibilities include coordinating construction of public improvements with construction of uses on the site, develop architectural standards and controls, execute contract for redevelopment as needed. Ms. Dacy stated also included as requested by the HRA is an exclusion for potential users that are on flle with the HRA attomey's oifice to give the HRA the ability to deal directly with those interested users. MEPC is aware of this and accepts that exclusion. Ms. Dacy stated that unless there are comments to the contrary, staff would like to take this outline and meet with MEPC, and come back in January requesting a recommendation for approval at that time. � Ms. Schnabel stated this seems to address the Chairperson's concems, and she thought the HRA concurred with those concems. �� HOUSING � REDEVELOPMENT AUTHORITY MTG., DECEMBER 11,1997 PAGE 4 7. REGIONAL REMODELING PLANBOOK Ms. Dacy stated the idea came out of a meeting of Community Development Directors who meet on a regular basis. All are from first tier communities. Over the last six or seven months, they have taken the idea of a plan book and identified a consultant that would help prepare a plan book that would look at post-World War I I era housing and ways for homeowners to remodel and/or expand those homes. It occurred to them that they all are looking at the same issues--housing rehab programs for apartments and single family homes, scattered site acquisitions, etc. All the housing departments were looking at a plan book. Although there are some individual projects underway, they thought it would be worthwhile to evaluate a regional approach to this issue. Ms. Dacy stated 15 communities are agreeable to collaborating on a regional book. If each community contributed $5,000, that would go toward hiring an architect to help produce a disk that would contain the contents of the remodeling plan book. The architect would look at the rambler, Cape Cod, and split entry designs; suggest a number of improvements for each interior and exterior, provide a range of costs; and provide some sketches of how that would look from the street side and outside of the property. Staff is asking that this be included in the 1998 budget. Realistically, this will not be published this year but rather in 1999. The group also hopes to fund part of the printing ^ costs through grants. Mr. Bums stated the State has funds available for regional projects. Ms. Schnabel stated this sounds like an exciting project. She thought that homeowners who fall within this category would benefit by having something like this at their disposal to provide some incentive to expand and preserve their homes. How many houses would fall within this category? Ms. Dacy stated the ramblers and split entries combined would make up 60% to 75% of the housing stock. The Cape Cod style is more predominant in St. Louis Park. Fridley has more of the ramblers. Ms. Dacy stated they are trying to find a title that tells the story. They are hoping that the book would be seen by the producers of the Hometime show on Channel 2 and perhaps spawn a series that is related to this market. Ms. Dacy stated the expenditure would be included in the 1998 budget and will be put on the January agenda. � OTHER BUSINESS: � Ms. Schnabel stated that regarding the 1998 meeting dates, she thought more members were in favor of the third Thursday rather than the first Thursday if the HRA were to n HOUSING & REDEVELOPMENT AUTHORITY MTG , DECEMBER 11, 1997 PAGE 5 change their meeting dates. She asked if inembers had a problem with meeting the flrst Thursday in general. Mr. McFarland stated he would be available for the January meeting, but he would not be available in February, March or April. He may have a problem with the first meeting in May, but otherwise it is okay. Ms. Schnabel stated they would then be changing the meeting to the first Thursday of the month. Ms. Dacy stated, yes, beginning with the February meeting. The January meeting will be on the 8th, which is the second Thursday. Ms. Schnabel stated she would not be available for that meeting. Mr. Prairie stated he would be gone for that meeting as well. ADJOURNMENT: OTION by Mr. Prairie, seconded by Mr. McFarland, to adjoum the meeting. � UPON A VOICE VOTE, ALL VOTING AYE, VICE�CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED AND THE DECEMBER 11,1997, HOUSING AND REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 7:53 P.M. Re�pectFully subm'tted, �. �� 1 ��°���� U � �° Lavonn Cooper ��� Recording Secretary �