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HRA 04/06/2000CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING APRIL 6, 2000 CALL TO ORDER: Chairperson Commers called the April 6, 2000, Housing and Redevelopment Authority meeting to order at 7:32 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, John Meyer Members Absent: Pat Gabel, Jim McFarland Others Present: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator William Burns, City Manager Jim Casserly, Development Consultant Julie Vogel, Accountant APPROVAL OF THE FEBRUARY 3, 2000, HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES: MOTION by Ms. Schnabel, seconded by Mr. Meyer, to approve the February 3, 2000, Housing and Redevelopment Authority meeting minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA: 1. RESOLUTION ESTABLISHING MONEY PURCHASE PLAN: Mr. Meyer stated that he would like this item pulled for discussion. ITEM #1 REMOVED FROM CONSENT AGENDA AND PLACED AFTER #3 IN ACTION ITEMS. 2. CLAIMS AND EXPENSES: Mr. Commers stated that Ms. Vogel had some items to be added to the Claims and Expenses list. Ms. Vogel stated there is a check in Claims and Expenses for about $848,000. Fifty percent of it is going back to Shamrock Investments, which is Onan-Murphy, and the other 50% will go toward the revenue note. Ms. Schnabel stated she sees the expenses but does not see the income. HOUSING & REDEVELOPMENT AUTHORITY MEETING. APRIL 6. 2000 PAGE 2 Ms. Vogel stated that the HRA has not been getting the receipt journal for seven months. Mr. Pribyl did not think it was necessary, but they could start including it in the agenda if the HRA wants it. Mr. Commers stated they could add it. There is no harm is seeing the breakdown. MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve the claims and expenses. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: 3. CONSIDER ACQUISITION OF PARCELS ON CENTRAL AVENUE: Mr. Fernelius stated staff would like this to be discussed at the May 4t" meeting and considered in terms of some of the redevelopment priorities that will be looked at over the next few years. They would like the HRA to approve amendments to the contracts that would extend the expiration date from April 30 to June 30. That will give them time to decide what they want to do after the May 4t" discussion. Mr. Commers asked if the sellers agreed with the extension of the agreements. Mr. Fernelius stated the sellers have agreed to the extension. Mr. Commers stated that he thinks it is appropriate; however, he has a lot of questions in terms of priorities. Secondly, the issues relating to the soil corrections that are necessary for these parcels need further investigation. It seems that significant corrections need to be made. Ms. Schnabel asked if there would be additional testing or work between now and May. Mr. Fernelius stated there will be additional testing on the Carlson property. They need to discuss in detail what the development cost would be for all three of the sites. Mr. Meyer asked if the Carlson property would be the only one where more soil borings would be needed. Mr. Fernelius stated that additional trenching work would be done to determine the extent of the debris on the site. Mr. Meyer asked if they were assuming that there is no organic material at the Carlson site. Mr. Fernelius stated that the test revealed that there was no organic material but there was some debris. Mr. Meyer asked who Liesch was. HOUSING & REDEVELOPMENT AUTHORITY MEETING. APRIL 6. 2000 PAGE 3 Mr. Fernelius stated that Bruce A. Liesch and Associates have done a lot of work with them on a number of different sites. Mr. Burns stated they have been the City's environmental consultant for years. Mr. Meyer asked if they do the soil borings as well. Mr. Fernelius stated that they subcontract that with a company called GME. Mr. Commers stated that Mr. Fernelius could ask Mr. Carlson if the debris removal is significantly different in terms of the cost for back-up material support that he might have that would enable the HRA to make a more informed decision about the actual cost. He may have some data or have retained some kind of consultant himself. Mr. Burns stated that he has a bigger concern that these parcels cannot be used without a combination of other parcels, as there is considerable expense with combining these parcels. These parcels have a purchase price of about $240,000. The purchase of the other parcels are well over $1,000,000 in doing that. Because of the soil conditions, he does not think these parcels are liquid assets for them, and they should look at the whole cost and compare it with other priorities. That is why he made the recommendation to staff and the HRA. It is hard to use parcels one and two by themselves. Mr. Commers stated that his advice is well taken. MOTION by Ms. Schnabel, seconded by Mr. Meyer, to amend the purchase of sale agreements with the Ericksons and the Pettys, amending an option agreement with the Carlsons, and extending the time frame with the expiration date from April 30 to June 30, 2000. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. RESOLUTION ESTABLISHING MONEY PURCHASE PLAN: Mr. Meyer asked staff to investigate if this is a portable plan and how it is going to work with regards to employees, especially if the employee wants to do something else in three years or so. Mr. Commers stated that Mr. Pribyl should answer the questions of the issues of the HRA being the employer, who are the trustees of the plan, and the type of liability that may exist with respect to that. MOTION by Ms. Schnabel, seconded by Mr. Meyer, to adopt Resolution HRA 3-2000 establishing Money Purchase Plan. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. HOUSING & REDEVELOPMENT AUTHORITY MEETING. APRIL 6. 2000 PAGE 4 INFORMATION ITEMS: 5. CONSIDER APPOINTMENT TO JOINT TASK FORCE WITH COLUMBIA HEIGHTS: Ms. Dacy stated that she wanted to give them an organizational chart to help describe the task force. The City Councils of Columbia Heights and Fridley met on February 29 to talk about the possibility of forming a joint citizen-appointed task force. They would look at the area around the Medtronic Corporate Campus and identify ways to work cooperatively to prepare a plan that identifies strategies to create redevelopment or other types of opportunities within a defined study area. Tentatively, the task force would have a chairperson with 11 people on the task force. A Councilmember from each city, an HRA or EDA member from each city, a Planning Commission member from each city, a business representative from each city, a representative from ISD #14 and #16 are appointed to be on the task force. They are going to approach the Superintendent of the ISD #13 to be the Chairman of the task force. Ms. Dacy stated this is not a task force that has any powers of authority as established in State law. It is an advisory commission. On February 29, the Councils talked about what would be the study area. A map of the study area shows it extends from 45t" Avenue in Columbia Heights and north into Fridley to Mississippi Street and then jogs up on TH 65 far enough north to pick up the existing campus at Medtronic. The appointed task force would be served by a joint technical advisory committee of staff. The community development directors from each community, city planners, housing coordinators, engineers, a representative from the Anoka County Staff, and people from the school districts would be on the advisory committee. The City Managers from Fridley and Columbia Heights would be involved, as well as the administrator from Hilltop. The staff committee has met once and will meet next Thursday to try for more organization. Bob Barnette has been appointed as the Fridley City Council representative, Diane Savage of the Planning Commission has been appointed, and the City is advertising for a business representative. Is any one of the HRA interested in serving? This will meet on a monthly basis beginning in May and extending through November or December. Ms. Schnabel asked if any consideration has been given to including someone from Medtronic on the committee. Ms. Dacy stated that they decided not to because they did not want the analysis to be perceived as a plan that is driven as a result of Medtronic's needs. They wanted to have an objective viewpoint on the community standpoint. Medtronic would be part of the analysis, and they do need to keep them involved in the process. Mr. Meyer asked what Medtronic has brought forth that they wish for as far as transportation facilities or restaurants or hotels. Ms. Dacy stated they have been a supporter of the commuter rail project. Beyond that, they have not identified anything more specific. Mr. Burns stated they do not have a real good handle on the industrial spin-offs. That is a key thing. Ms. Schnabel asked where the Medtronic products were manufactured. HOUSING & REDEVELOPMENT AUTHORITY MEETING. APRIL 6. 2000 PAGE 5 Mr. Burns stated that they are manufactured all over the Twin Cities, Europe, and the world. Mr. Commers stated he believed Medtronic's input is critical to the real decisions, even though that is not driving the whole thing. They all want a hotel, restaurant, and those kinds of services, but its seems that the overall concern is what is the spin-off. Ms. Schnabel asked if Mr. Commers would consider the appointment to the task force. Mr. Commers stated he already has a commitment that generally meets on Thursdays so it would be hard for him and asked Ms. Schnabel and Mr. Meyer if they would like to participate. Mr. Meyer stated that Ms. Schnabel would make an excellent representative. Ms. Schnabel stated that she is not certain she would have the time. Mr. Meyer stated that he would be glad to serve on the task force. MOTION by Ms. Schnabel, seconded by Mr. Commers, to appoint Mr. Meyer to serve on the Joint Task Force. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Commers stated that he would like to have updates of the task force on the monthly agenda. Ms. Dacy stated she would be happy to do that. 6. GATEWAY EAST UPDATE: Mr. Fernelius stated they had a neighborhood meeting on March 30. Approximately 40-50 people attended the meeting. There was an overview of the project and a copy of the site plan. Option A calls for the closure of the frontage road around Valvoline and JR's Automotive and reconnecting 4t" Street. There would be a connection to the frontage road and the businesses along the service drive. Option A provides the flexibility as far as the site is concerned. This plan and Option B requires closing off the access to Valvoline. Staff has evaluated that and believes that will work if the traffic is rerouted internally; however, they have not talked to Valvoline about that. Mr. Fernelius stated that Option B is similar to Option A. The only difference is that 4t" Street would not be completely reconnected. This would be a double reverse curve. Traffic on 4tn Street to the north in the neighborhood would be limited to going eastbound on 57'/ Avenue. Traffic coming off 57t" Avenue or 57t" Place would go north on the new connection on 4tn Street but would be limited to the frontage road access. It is the same land area as Option A. Mr. Fernelius stated that Option C leaves the site the way it is in terms of existing roads, with the exception of making a connection with 4t" Street and closing off 57t" Avenue and building a cul-de-sac providing access to the project. They reviewed all three options and had the HOUSING & REDEVELOPMENT AUTHORITY MEETING. APRIL 6. 2000 PAGE 6 residents fill out a survey. The results were shared at the end and the preferred plan was Option B. This is not a huge surprise. Comments seemed to focus on the roads and only a few questions as far as why a townhome project was being built there. They are going to take this information and provide it to the developers as they go through the solicitation process and at some point go back to the neighborhood once the developer is on board and present the plan. Mr. Commers asked if the City has a preference. Ms. Dacy stated that staff is looking at Option A or B to maximize the area and create a lot of open space and flexibility for the site plan. This is the same street pattern that was proposed in 1988 for the redevelopment that included Rapid Oil. Mr. Burns asked Mr. Fernelius if he received any density issues. Mr. Fernelius stated there were a few comments regarding why they were not doing a single family project versus a townhome project. They tried to explain the economic impact to the HRA, attractiveness of the site for townhomes, and the demand. Ms. Dacy stated that the other argument is that the existing land use surrounding it has an apartment building, a four-plex and a string of duplexes, and a mixture of more apartments. Mr. Commers asked how many units they can put in here and how much green space is there. Mr. Fernelius stated that there are 24 - 32 units depending on the developer and type of unit they build. This is envisioned to be similar to the Christianson Crossing project with units clustered together with attached townhome product with 4,6, or 8 units. The number of buildings on the site probably would not be more than 32 units. Ms. Dacy stated that the project size is 2.5 acres so it is probably at 10 - 15 units per acre. Twenty-four units are probably around 11 -12 units per acre. There is enough land area for that range. The challenge is the necessity for parking. There is parking in the back and an alley. There is an opportunity for improvement and maybe a shared type of arrangement. Mr. Commers asked how close they would be parked to the street. Ms. Dacy stated that they would rezone the area to the S-2 redevelopment district as they did with the Christianson Crossing and give the ability to play with the site design and place the buildings to meet all the requirements. 7. REMODELING FAIR AND REMODELING ADVISOR UPDATE: Mr. Fernelius stated that the North Metro Home and Garden Fair was held on Saturday, March 18, at the Moundsview Community Center sponsored by the Cities of Blaine, Fridley, Moundsview, and New Brighton and Priority Mortgage. Approximately 1200 - 1500 people were in attendance. This year there were a total of 80 booths and a variety in comparison to previous years, and he is hoping they can do it again in the future. HOUSING & REDEVELOPMENT AUTHORITY MEETING. APRIL 6. 2000 PAGE 7 Mr. Fernelius stated they did find a replacement for the Remodeling Advisor. Ryan Jendro will be starting Monday, April 10. He works currently for the Mille Lacs Band as a building official and has good experience. Prior to that, he worked as a construction manager for a contracting company in Bloomington. He also has a degree in construction management. They are excited to have him on board. He will possibly come to the June meeting. Mr. Commers asked if they have any pending requests for remodeling loans. Mr. Fernelius stated hey have been making loans and grants. He neglected to include a report at this meeting but will be happy to give them one at the next meeting. Ms. Schnabel asked how many hours per week Mr. Jendro would be working. Mr. Fernelius stated that he would be working 24 hours per week. 8. CITY COUNCIL AND COMMISSION SURVEY RESULTS: Mr. Commers asked if they were going to have the joint discussion at the next meeting. Mr. Burns stated that he would like to have everybody meet at 7:00 p.m. on May 4t". One Councilmember cannot make it before then. There is no dinner planned. Ms. Dacy stated that she thought that they would have the joint discussion and then the regular meeting would start after the end of the meeting. They will probably be downstairs. Mr. Commers asked if they were going to schedule their meeting at 9:00 p.m. or something. Mr. Burns stated that he does not know how long the Council discussion will take. Ms. Dacy stated one definite action item for the HRA meeting would be the Central Avenue lots. Mr. Commers stated that those are postponed until the end of June so they could always address it in June. Mr. Casserly stated there are some issues that need some time to resolve, so if they want to proceed with the acquisitions, it may be appropriate to address that issue at the joint meeting. Mr. Burns stated that the general plan for the meeting would be to discuss the questions from the survey that are related to redevelopment rather than 50 questions in the survey. If there are other questions, he would be glad to include them on the agenda. Council will also be meeting with the Planning Commission, the Parks and Recreation Commission, the Human Resources Commission, and the Youth Commission all on different evenings. He would like to start out with having staff explain the question and justification for the question and have an opportunity for both the Council and the HRA to ask questions about Staff and discuss the issues related to the questions with each other. He does not anticipate closure to each issue, but to discuss and try to identify which issues are the most important. Mr. Burns stated that the survey results were very interesting, and they had 41 Council/ Commission respondents and 3 HRA respondents. HOUSING & REDEVELOPMENT AUTHORITY MEETING. APRIL 6. 2000 PAGE 8 Mr. Commers stated he is not so sure that he agrees that they should vote on things in a group. Mr. Burns stated that there is nothing in the process that is directed toward eliminating the independence of the HRA or diluting the authority of any of the other boards and commissions. He is trying to make sure that if they have looked at a comprehensive inventory of issues at least once a year and have thoughtful analysis of which issues are most important. Mr. Commers asked if the survey coordinates itself with the Comprehensive plan. Ms. Dacy stated that the comprehensive plan identifies a lot of the issues that are in the survey and in some cases the plan makes specific types of suggestions that the survey asks about. The survey gets more into the City operations too, so there is some overlap. The redevelopment priorities are a good example where the plan and the survey match. There is a question about whether they do salvage yard redevelopment first or should they try to find a site for hotel and restaurants. The plan goes through some of those issues. The survey is a tool to decide on an annual basis of how to implement some ideas of the plan. There may be some that feel that the plan says things we should not be doing. Mr. Burns stated that some of the planning questions in the survey are very complimentary to the comprehensive plan such as mother-in-law apartments and lot area requirements. Mr. Commers asked what is the assumption in setting up priorities. For example, they keep talking about salvage yards. This may be a real number one priority, but the fact is that he is not sure he can put it there because there are so many questions about it. It makes it hard to put priorities on things if it costs an exaggerated amount. Ms. Dacy stated that she thinks there is a whole list of assumptions in order to make a decision. There is cost and timing in terms of use and the market developer interests. Availability of State funds and, in the case of the salvage yards, pollution and clean-up monies are available now. In that area, there is an established type of a district. Mr. Burns stated that the survey has to be user-friendly. It has to have enough information so people feel comfortable in answering the questions. They try to put in enough information as practical, but have to recognize that the survey is not an instrument for final decision making. It is a great place to start discussions and a great educational tool. Ms. Dacy stated that sometimes the priorities get picked for them. Two years ago they shifted the priority to Gateway East, and that is why it is necessary to go through on an annual basis because the next month something else can come up that presents an opportunity. Mr. Burns stated that he likes the survey because it brings in different levels of City employees. These people are on the street doing the work and have good perspectives on what their area is trying to do for the citizens and involved in guiding the priorities. Ms. Schnabel asked if they were also meeting on May 15. HOUSING & REDEVELOPMENT AUTHORITY MEETING. APRIL 6. 2000 PAGE 9 Mr. Burns stated that they are not. This meeting had been scheduled for four different meeting dates. Ms. Dacy stated that it was only May 4. ADJOURNMENT MOTION by Ms. Schnabel, seconded by Mr. Meyer, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE APRIL 6, 2000, MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY WAS ADJOURNED AT 9:00 P.M. Respectfully submitted, Signe L. Johnson Recording Secretary