Loading...
HRA 06/04/1998 - 29826� CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING JUNE 4, 1998 CALL TO ORDER• Chairperson Commers called the June 4, 1998, Housing and Redevelopment Authority meeting to order at 7:34 p.m. ROLL CALL: Members Present: Larry Commers,Virginia Schnabel, John Meyer, Duane Prairie, Jim McFarland Others Present: Barbara Dacy, Community Development Director Jim Casserly, Financial Consultant Dave Jellison, MEPC David Sellergren, Doherty, Rumbe and Butler ,,� APPROVAL OF MAY 7 1998 HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES• Chairperson Commers noted a correction to Page 1 of the minutes. The Vote should be changed to read "UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. O I : by Ms. Schnabel, seconded by Mr. Prairie to approve the May 7, 1998, Housing and Redevelopment Authority minutes as amended. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA• 1. CLAIMS AND EXPENSES• A list of additional expenses for HRA approval was distributed. OT N by Ms. Schnabel� seconded by Mr. Meyer to approve the Consent Agenda. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED � THE MOTION CARRIED UNANIMOUSLY. �� . • h : C � / • ' ►�I ►Y � YY. • : 11 ►�1 Yh 1 1�1 � •• • • . PRESENTATION: 2. CERTIFICATE OF APPRECIATION FOR DUANE PRAIRIE• Chairperson Commers took this opportunity to present a Plaque from the City of Fridley HRA to Duane Prairie, acknowledging the City and HRA's appreciation of his many years of service on the Housing and Redevelopment Authority. The HRA members and staff thanked Mr. Prairie for his input and the perspectives that he has brought to the HRA. ,ACTION ITEMS: 3. CONSIDER RESOLUTION AUTHORIZING EXECUTION OF DEVELOPMENT CONTRACT WITH DUKE REALTY INVESTMENTS INC Mr. Commers noted the memo to the HRA from Barbara Dacy, dated May 29, 1998, in regard to this matter. He explained that MEPC's sale of its office real estate portfolio will require the HRA to execute a new redevelopment contract with Duke Realty. Mr. Casserly stated Resolution No. HRA 6- 1998 will authorize execution of the � redevelopment contract with Duke Realty. The contract essentially remains the same with a change to the name and to a few dates in the contract. June 23, 1998 will be the target date to have a new title commitment prepared and to provide a survey. Mr. Dave Jellison, MEPC, provided a brief history of Duke Realty Investments, Inc. He explained that they have been a long term holder of real estate. At this time, they are the 15th largest real estate trust company in the nation. The company started as a construction company and in 1992 they became a real estate trust company. They have an approximate $3 billion asset value. Duke Realty will take over all of the MEPC holdings and continue to develop. His goal as Vice President/General Manager of the Minneapolis office will be to develop more and more office and high-tech buildings. Mr. Commers asked what type of properties Duke Realty generally invests in. Mr. Jellison stated that they have very little retail property (5%). They hold a larger percent of industrial (approximately 65%) and office (approximately 30%). He will be working to expand the office property. Duke Realty is a long-term holder of real estate which manages, leases, and develops its own projects. He stated they presently do not have their own construction company, but sees this as a real possibility within the near future. OM TION by Ms. Schnabel, seconded by Mr. Prairie to approve Resolution No. HRA 6- � 1998� Authorizing the Execution and Delivery of a Contract for Private Redevelopment � 1 : ' � •' 1 ' � •' I 1�, l� ' "� •. � By and Befinreen the Housing and Redevelopment Authority in and for the City of Fridley and Duke Realty Investments, Inc. Mr. Meyer stated he would like to see the language in the resolution "tightened up". He stated he has concems with the words "substantial conformance" on Page 3D of the Resolution. He felt the identical contract should be signed as was originally signed between the HRA and MEPC. Mr. Casserly explained that the resolution is a traditional resolution which has been used before to allow adjustments in contracts. The only changes between the prevlous contract and the new contract are the names and some date changes to reflect the execution of the contract. Mr. David Sellergren of Doherty, Rumble and Butler stated that no further significant changes are anticipated. If any significant changes should occur, they would be required to be brought before the HRA for consideration. Mr. Meyers stated the HRA has been working with MEPC and has gained the HRA's confidence. He is concemed that the HRA would have no recourse if there were significant changes to the contract once the resolution was approved. Again, he stated his concem as to the language "Substantial conformance" in the resolution, noting that ^ this could also refer to the construction quality. Mr. Casserly explained that "substantial conformance" does not refer to the developer substantially conforming to the contract, but rather that the contract is substantially the same when it is executed. He noted that if the HRA wishes, a period could be added after the word "Contract" under Section 3.01 of the Resolution, deleting all following language. MOTION TO AMEND by Ms. Schnabel, seconded Mr. Prairie, to approve Resolution No. HRA 6-1998 as amended. Mr. Meyers asked if there was adequate language in the contract to require the same quality items that have been required in the past contract with MEPC. Mr. Casserly stated he believes this is all in order; nothing has changed in the contract. The City has a permitting process which assures that the conditions are met. Additionally, all the conditions are detailed on one of the schedules which are attached to the contract. Ms. Dacy explained that during the permit process, if any deficiencies are seen, it is immediately brought to their attention. � VOTE ON AMENDED RESOLUTION NO. 6-1998 � • 1 : ' � •' I � 1111. •' I _I� 1L� � ••; • . • �"� UPON A VOICE VOTE, ALL MEMBERS VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. INFORMATION ITEMS: 4. COUNCILMEMBER BILLING'S LETTER TO NEIGHBORHOOD: Mr. Commers stated that a copy of Councilmember Billings' letter to the residents in the neighborhood around the Shorty's Towing/JR Auto Repair redevelopment site was included in the Agenda packet for informational purposes. 5. STATUS OF DEALERS MANUFACTURING: Mr. Commers explained that the HRA entered into a pass-through agreement with the Metropolitan Council and the State Department of Trade and Economic Development for clean up at Dealer's Manufacturing located at 5130 Main Street. The HRA will be receiving the money for this clean up and in tum will be issuing a check to Dealers Manufacturing to reimburse them for the costs. Ms. Dacy noted that Dealers Manufacturing has substantially completed the clean up activities. Over the next four years, testing and sampling of the underground water will �''� be completed. 6. FOLLOW-UP ON COMMENTS FROM MAY 7. 1998 MEETING: Mr. Commers noted the chart on Page 6A of the Agenda packet which provided information in regard to loan activity and housing stock in the Hyde Park neighborhood. Ms. Dacy explained that 21 loans have been granted since 1995 in the Hyde Park neighborhood, with a total of 46 units receiving improvements. Ten loans have been used to improve single family properties and eleven loans have gone to improve rental property. To date, a total of 182 loans have been disbursed city-wide; 158 installment loans and 24 deferred loans. Mr. Commers stated there is some confusion in the Council's suggestion to the HRA in regard to the Hyde Park neighborhood. Ms. Dacy stated the Council wants to be extremely careful about what is proposed in Hyde Park and that they would like to focus on Gateway East first and the 57th Avenue Reconstruction Program. This would set an example for what could happen on the west side. She noted that the first meeting on the Frank's Used Car site was controversial and the Council wants to be careful about what is proposed there. They want the HRA to continue with the Housing programs in the Hyde Park neighborhood �'"'� and to get their reactions to the redevelopment proposed for the Gateway East area, : • � 1 : _ : � _ / _ � '_UI _�Y : flll. • : 11 ►�1 Ilh_ __ 1 1�1 �_�• • � • . i"� following close behind with the redevelopment of the Frank's site. If both sites are redeveloped a tremendous changeover will occur and greatly impact the corridor. Mr. Commers stated if the Council decides to proceed with the development of the Gateway East project first, it could conceivably be two to three years before the redevelopment of the Frank's Used Car site. Ms. Dacy stated it is the Council's desire to move ahead aggressively. It is not inconceivable that the City could get through the planning process this fall for the Gateway East site and see development start in April of 1999. The City could then start on the Hyde Park area by Fall of 1999. Mr. Prairie noted that the Shorty's property has been talked about in the past for redevelopment and nothing has occurred on the property. Ms. Dacy noted that it is not the intent of the HRA to hold on to the property and that plans are to move ahead aggressively on this project. Mr. Commers stated he does not see any benefit in putting aside discussions on the redevelopment of the west side. The City could come up with as good of a plan now for the area as they will in two or three years. � Mr. Meyers stated the concems he voiced at the last HRA meeting have not been addressed. It was his feeling that perhaps changes would need to be made to the loan/grant programs to make the programs more affordable to the low-income residents in the area where the housing stock is poor. Ms. Dacy stated that staff is prepared to research changes to the programs. However, if the HRA wants to make changes, they will also need to consider the cash flow impact that those changes will create. Additionally, she noted that there may very well be other factors that influence a homeowners choice not to participate. Mr. Meyers stated he would like the staff to determine the effects on the cash flow that would be influenced by program changes. Program changes, such as 100% grants rather than a 50/50 split could be made available city-wide, but with stricter income guidelines. The City must keep in mind the goal of the program which is to improve the housing stock. Many homeowners are using the funds for items which have nothing to do with improving housing stock. Ms. Dacy stated she would come back to the HRA Board at the July or August meeting with some altematives/ideas. Mr. Commers stated he would also like further clarification from the Council on what �"� they are thinking of in terms of caution on the Franks Used Car site. • -% : � � •� i � •• i � 1�- ..; �• . � OTHER BUSINESS: • � ��• � � .. Ms. Dacy explained that at the end of April 1998, the HRA had closed on ten loans. The City publication just went out and staff is anticipating increased activity during the upcoming months. Additionally, the HRA currently has five lots for sale and has received offers on all of them. Public hearings will be conducted at the next HRA meeting in July. Ms. Dacy noted that Grant Femelius and Jim Casserly have been working on putting together a policy addressing loan delinquencies. This will tentatively be presented to the Board at the July meeting for review. Mr. McFarland asked if the homeowners with delinquent loan payments are aware that they are losing equity in their homes. Ms. Dacy stated she did not have that information, but would ask if homeowners are notified of this. Mr. Casserly stated the loan servicer has guidelines that they follow in regard to past due loan payments. However, after they have pursued the matter, and the loan is considered delinquent, the course of action is determined by the City. 8. REPORT REGARDING INTERNSHIP OPPORTUNITY: Ms. Dacy explained that the Center for Urban and Regional Affairs at the University has a graduate intemship program available and is requesting proposals form communities to place these students. If Fridley is selected based on the City's needs, a student would begin working for the HRA in September of 1998 and continue through until June 1999. The intem could assist staff with the Remodeling Fair as well as many other duties. No action was requested of the HRA at this time. ADJOURNMENT: Chairperson Commers declared the June 4, 1998, Housing & Redevelopment Authority meeting adjoumed at 8:50 p.m. RespectFully submitted, a �g ..,�� ,'PiqO � 7 1��'ts �' 6'� L° � 9� Tamara D. Saefke Recording Secretary �