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HRA 05/04/2000 - 00008192CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING MAY 4, 2000 CALL TO ORDER: Vice-Chairperson Schnabel called the May 4, 2000, Housing and Redevelopment Authority meeting to order at 9:58 p.m. ROLL CALL: Members Present: Virginia Schnabel, John Meyer, Pat Gabel, Jim McFarland Members Absent: Larry Commers Others Present: William Burns, City Manager Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator Jim Casserly, Development Consultant Julie Vogel, Accountant APPROVAL OF THE APRIL 6, 2000, HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES: MOTION by Mr. Meyer, seconded by Ms. Gabel, to approve the April 6, 2000, Housing and Redevelopment Authority meeting minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA: CONSIDER RESOLUTION DESIGNATING BLIGHTED PROPERTY IN GATEWAY EAST PROJECT: Mr. Fernelius stated that this is a resolution identifying the duplex at 349-353 57t" Place as a blighted property. A similar resolution was adopted by the HRA in April of 1999 for the Cash-n-Pawn and JR's Automotive sites. Blight determination is required to include the parcel in a tax increment financing district (TIF). Action on the TIF district is tentatively scheduled for sometime this summer after a developer has been selected. In the meantime, the structure can be demolished to prepare the site for redevelopment. Staff recommends approval of the resolution designating certain properties in the Gateway East Project Area as blighted. HOUSING & REDEVELOPMENT AUTHORITY MEETING. MAY 4. 2000 PAGE 2 2. CLAIMS & EXPENSES: MOTION by Ms. Gabel, seconded by Mr. McFarland, to approve the claims and expenses as presented. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the consent agenda. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: 2. RECONSIDER ACQUISITION OF CENTRAL AVENUE PARCELS: Mr. Fernelius stated that staff recommends that the first action is to approve the Petty- Erickson acquisitions for $57,000 and $86,100 respectively. The second action is to exercise the right to terminate the agreement with Richard Carlson. Mr. Casserly suggested that the HRA use the funding in escrow for the clean-up cost. The purchase prices are being adjusted to reflect the cost and the clean-up. Those other funds will be used to do just that. The purchase price should be adjusted as shown in the resolution and use the balance of the funds. The funds cannot be moved between the parcels. Ms. Schnabel stated that an outside party was interested in the Petty property. Are they going to purchase this ahead of this private party? Ms. Dacy stated she explained to the private party that the escrow agreement and purchase agreement was extended to June 30. The negotiation is still first between the HRA and the property owner. The private party wants to develop it immediately for a dental office. Ms. Schnabel stated that on the Carlson site, staff made it clear that the debris on the site was so expensive and of a different nature than the other two sites. Mr. Meyer stated that he does not know how valuable the Carlson site would be to impose clean-up. There are other ways to put piling down and save money. Mr. Fernelius stated that the Carlson site probably is not going to develop on its own. At some point down the road, they might get involved in this again and assist in the clean- up costs. Ms. Dacy stated that the piling suggestion is fine; but if some more hazardous materials were detected, it would still have to be corrected for the land use. HOUSING & REDEVELOPMENT AUTHORITY MEETING. MAY 4. 2000 PAGE 3 Mr. McFarland asked for more information regarding the contamination. Mr. Fernelius stated they just do not know. Mr. McFarland stated that the property might be worth less than the cost of clean-up. Possibly a new offer could be reconsidered. Mr. Fernelius stated that the concern is that the cost of the clean-up could be very expensive far in excess of what the HRA would have even committed to pay for the site. Mr. Casserly stated that with the Petty-Erickson sites, they will be coming back into the amendment to the escrow agreements. The amendments were not prepared in advance for the meeting. With the extension of time, these parcels will not be closed until after the next HRA meeting. He suggests that they authorize an amendment to those agreements, but they will be prepared in time for the next meeting. MOTION by Ms. Gabel, seconded by Mr. McFarland, to approve the modified purchase price amounts for the Petty property from $90,800 to $57,000; and for the Erickson property from $166,000 to $86,000; with the understanding the balance of funds held in escrow will be applied to any environmental clean-up costs. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Mr. Meyer, seconded by Mr. McFarland, to terminate the Option Agreement with Richard Carlson with the understanding that the funds held in escrow will be returned to the HRA for repayment of the City's loan. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. INFORMATION ITEMS: 4. GATEWAY EAST RFP/RFQ: Mr. Fernelius stated that the RFP packet identifies the goals of the project and provides three site plan/street configuration options. The developers will be asked to provide sample building and site plans, a summary of their experience, city references and basic financial information that will be kept confidential with the HRA attorney. Once the proposals are received, the HRA will review them at the July meeting. 5. COMPREHENSIVE PLAN UPDATE: Ms. Dacy stated that the current draft of the plan has some additional information regarding how the Central Avenue vacant parcel acquisition would relate to what is stated in the plan. This is to clarify intent and the meaning of the language to address concerns heard at public hearings and to respond to concerns of the City Attorney and the City Manager. HOUSING & REDEVELOPMENT AUTHORITY MEETING. MAY 4. 2000 PAGE 4 ADJOURNMENT: MOTION by Ms. Gabel, seconded by Mr. McFarland, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED AND THE MAY 4, 2000, MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY ADJOURNED AT 10:11 P.M. Respectfully submitted, Signe L. Johnson Recording Secretary