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HRA 02/01/2001 - 00008986CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING FEBRUARY 1, 2001 CALL TO ORDER: Chairperson Commers called the February 1, 2001, Housing and Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, Pat Gabel, Jay Bajwa Members Absent: John Meyer Others Present: William Burns, Executive Director of HRA Grant Fernelius, Housing Coordinator Rick Pribyl, Finance Director Paul Eisenmenger, HRA Accountant Barbara Dacy, Executive Director of HRA, Washington County Jim Casserly, Development Consultant INTRODUCTION OF JAY BAJWA, NEW HRA MEMBER Mr. Commers introduced and welcomed Mr. Bajwa as the newest HRA member replacing Jim McFarland. APPROVAL OF THE DECEMBER 7, 2000, HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES: MOTION by Ms. Schnabel, seconded by Ms. Gabel, to approve the December 7, 2000, Housing and Redevelopment Authority minutes. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA: CLAIMS AND EXPENSES: 2. AUTHORIZATION TO PARTICIPATE IN THE MINNESOTA CITIES PARTICIPATION PROGRAM THROUGH THE ANOKA COUNTY HRA: MOTION by Ms. Schnabel, seconded by Ms. Gabel, to approve the consent agenda. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. HOUSING & REDEVELOPMENT AUTHORITY MEETING. FEBRUARY 1. 2001 PAGE 2 RECOGNITION OF BARBARA DACY, FORMER COMMUNITY DEVELOPMENT DIRECTOR: Mr. Commers stated that Ms. Dacy has been an invaluable resource for the City and the HRA. She has been very active in HRA redevelopment for the last 9-10 years. She deserves a lot of credit for the successes the City has had. She has now accepted the position of Executive Director of HRA for Washington County. The Fridley HRA members are very happy for her and congratulate her on her new position. On behalf of the Fridley HRA, Mr. Commers presented Barbara Dacy with an award of appreciation. Ms. Dacy stated that this is an honor and it is a beautiful plaque. She is grateful to have worked for the Fridley HRA and with Grant Fernelius and Jim Casserly. The HRA has served the citizens of Fridley well. PUBLIC HEARING: 3. CONSIDER RESOLUTION AUTHORIZING CONTRACT FOR PRIVATE REDEVELOPMENT WITH GATEWAY REDEVELOPMENT LLC (REAL ESTATE EQUITIESI FOR GATEWAY EAST PROJECT: Mr. Casserly stated that the HRA had already approved the redevelopment contract. He and Mr. Fernelius have made some minor adjustments to it over the last several weeks. The public hearing is required by law to transfer the land. MOTION by Ms. Schnabel, seconded by Ms. Gabel, to open the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS OPENED AT 7:39 P. M. Mr. Fernelius stated that the hearing is required by law. The public hearing notice was published in the Focus News, and the City has met all the statutory requirements. The hearing provides the HRA and the public with an update on the project and the sale of the property. No specific action is required beyond this public hearing. This concludes the last step in a two-year process. The HRA currently owns five parcels in the Gateway East project area located at the corner of 57th and University Avenue. At the last meeting in December, the HRA approved the delivery and execution of a contract with Gateway East Redevelopment, LLC. That is the joint partnership between Real Estate Equities and the Bisanz Brothers in St. Paul. Mr. Fernelius stated that the developer is proposing to construct an owner-occupied townhome development on a two and a half acre site. Construction is supposed to start late spring or early summer 2001. The developer is currently working with the consultant to conduct environmental testing and has until February 15 to report back its findings to the HRA. The City is not anticipating any issues beyond those already identified. There is a small pocket of contamination on the former Cash-N-Pawn site, but the consultants believe they can develop around that. The HRA has agreed to pay the developer up to $15,000 for those testing costs. Mr. Fernelius stated the developer is in the process of submitting the land use applications and next week the Planning Commission will consider the zoning application, street vacation, and plat. Those three land applications will go to the City Council on February 26. In advance of HOUSING & REDEVELOPMENT AUTHORITY MEETING. FEBRUARY 1. 2001 PAGE 3 the land use applications, the developer and Staff conducted a neighborhood meeting on Thursday, January 25, 2001. The meeting was very positive. There were a lot of good questions and feedback. The people seemed to be in support of the project and anxious for construction to begin. Mr. Fernelius stated that following the Planning Commission and Council review process, the developer will submit the applications for building permits. Groundbreaking is tentatively scheduled for sometime in April or May. Construction will begin in June or July of this year and should be completed in approximately 12 months. Mr. Commers asked if the only issue was what the liability had been and the financial wherewithal with the Gateway East Redevelopment, LLC, as compared to the Bisanz people. Have there been any objections from the public? Mr. Fernelius stated there have been no objections from the public. MOTION by Ms. Schnabel, seconded by Ms. Gabel, to close the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:44 P.M. Mr. Commers stated that he presumed that when staff is ready to close on the transaction, the HRA will be advised for further approval and execution. Mr. Casserly stated that there should be a motion authorizing the sale. MOTION by Ms. Schnabel, seconded by Ms. Gabel, to authorize the sale of the Gateway East site to Gateway East Redevelopment, LLC. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. OTHER BUSINESS: Mr. Commers stated that the HRA received a memo from Mr. Casserly regarding the changes in the TIF revenues. Immediate action is recommended with respect to modification of the Onan District. Mr. Casserly stated they needed to analyze that with staff for the next week or so. The problem presented is that legislation introduced limits of the ability of the HRA's authority to use tax increment from districts created prior to May 1, 1990. Those increments of revenue give opportunity to fund some projects. The district the City has looked at for so long has been the Onan warehouse facility district. They need to look at the district and determine if there is any other potential development and to make sure they have authorized that possibility in the budget. The law is written that the budget must describe the potential by April 30, 2001, to give the maximum possibilities. The law further states that there is another year beyond that to actually expend the funds. There is going to be a substantial amount of input into that legislation. It is important for Fridley, and the HRA has done a number of things over the last several years that puts Fridley in the position to take advantage of resources resulting in a strong reserve fund. From the Medtronic opportunity, a fund has been created to support a HOUSING & REDEVELOPMENT AUTHORITY MEETING. FEBRUARY 1. 2001 PAGE 4 number of activities for the next several years. They want to make sure they utilize all the resources. Mr. Casserly stated that the budget provides opportunity to do further projects and there is never anything negative about revising the budget. It only becomes negative if you choose to do something six months from now and you cannot do it because there are too many projects in the budget. This is a requirement only because of the legislation. The Onan district was set up to address some of the pollution issues, and it is important to look at this further. Mr. Commers asked when the HRA established that district. Mr. Casserly stated it was established in June 1989. Ms. Schnabel asked if there were other districts that would fall into the same category. Mr. Casserly stated that TIF District No. 7(the Winfield development) was established in September 1986, Medtronic was established in November 1985, but that budget was revised about one year ago. TIF Districts #9 (Onan) and #10 are also included. Mr. Casserly stated that TIF District #10 was a small amount of $70,000 for site improvement and preparation costs. Mr. Commers stated that it is difficult if there is an April 30 deadline and who knows whether or not there will be an amendment by then. Mr. Casserly stated they are advising the City that it is not that difficult to revise the budget. There is enough time to revise and approve the budget at the April meeting. Ms. Schnabel stated that this bill has not passed. Is it still in committee? Mr. Casserly stated that it is still in committee at both the House and the Senate. Mr. Commers stated that the plan and strategy is that Mr. Pribyl will work on the budget and determine what projects can be done utilizing any of the excess funds of the Onan District. Mr. Casserly stated that the issue is a matter of planning to see what the opportunity may be for future development in that district. Mr. Commers asked about the boundaries of the district. Ms. Dacy stated that the boundary includes the salvage yard properties, and it might be a parcel short of Highway 65 from 73�d Avenue down to the southeast side, not including Medtronic property or land west of the Medtronic parking lot. Mr. Casserly stated this is an issue of whether there could be any potential development occurring over the next three to five years. Mr. Commers stated they have to see what will be passed. Do they want to support or participate on the side of the limitations of tax increment use or the three items indicated? They have not been asked anything about that. HOUSING & REDEVELOPMENT AUTHORITY MEETING. FEBRUARY 1. 2001 PAGE 5 Mr. Casserly stated this was introduced a couple of weeks ago. Mr. Burns stated they have been asked to put together examples of how the proposed legislation will impact the Fridley HRA. Mr. Fernelius is in the process of doing that for the League of Minnesota Cities. Mr. Commers stated the HRA should discuss what direction to go with this. Mr. Burns stated another Council and Commission survey will be coming out very shortly, and he hopes to have another Council/HRA session to discuss issues all over the City to determine the needs. ADJOURNMENT MOTION by Ms. Schnabel, seconded by Ms. Gabel, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE FEBRUARY 1, 2001, MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY ADJOURNED AT 8:01 P.M. Respectfully submitted, Signe L. Johnson Recording Secretary