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HRA 08/02/2001 - 00009318CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING AUGUST 2, 2001 CALL TO ORDER: Vice-Chairperson Schnabel called the August 2, 2001, Housing and Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL: Members Present: Virginia Schnabel, Pat Gabel, John Meyer, Jay Bajwa Members Absent: Larry Commers. Others Present: Grant Fernelius, Assistant Executive Director of HRA Scott Hickok, Community Development Director James Casserly, Development Consultant Paul Eisenmenger, HRA Accountant APPROVAL OF THE JUNE 7, 2001, HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES: MOTION by Ms. Gabel, seconded by Mr. Meyer, to approve the June 7, 2001, Housing and Redevelopment Authority meeting minutes. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. ANNUAL MEETING: Election of Officers: MOTION by Ms. Gabel, seconded by Mr. Meyer, to nominate and cast a unanimous ballot for Larry Commers as Chairperson of the HRA. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Ms. Gabel, seconded by Mr. Bajwa, to nominate and cast a unanimous ballot for Virginia Schnabel as Vice-Chairperson/Secretary of the HRA. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA: 2. CONSIDER HRA TAX LEVY FOR TAXES PAYABLE IN 2002 (RESOLUTION NO. HRA 6-20011: 3. CLAIMS AND EXPENSES: Mr. Meyer asked if the additional claims and expenses would be incorporated into the scheduled claims and expenses. Ms. Schnabel stated they are to be included. MOTION by Mr. Meyer, seconded by Ms. Gabel, to approve the Consent Agenda with the additional claims and expenses. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: 4. PUBLIC HEARINGS REGARDING SALE OF LAND (5297 LINCOLN ST. AND 571 LAFAYETTE ST.) MOTION by Ms. Gabel, seconded by Mr. Bajwa, to open the public hearing UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING WAS OPENED AT 7:40 P.M. Mr. Fernelius stated that the first project is located at 5297 Lincoln Street. The builder is Wilkinson Construction. They are proposing a one story rambler with a two-car attached garage with 1,500 square feet. It will have three bedrooms with two full bathrooms with expansion space in the basement. Staff has asked the builder to orient the garage away from the front farade of the house. The garage is now oriented to Lincoln Street as shown in the side elevation, and the front entrance is on 53�d Avenue. The rear elevation faces east. The lot would be sold to the builder at $48,760. The house price is $180,000. The home has been presold to a prospective buyer, so a purchase agreement is in place. Ms. Schnabel asked if there will be brick across the part where the front door is. Mr. Fernelius stated that was not discussed with the builder. Staff could go back and talk to him about adding brick. The brick that is shown was arrived at through the negotiation process. Ms. Schnabel stated that since that part is facing the street, it would be nice to tie that in. Mr. Fernelius stated that the second project is located at 571 Lafayette Street. The builder is David Moran who is proposing a single family home with a split level design with a two-car attached garage. It would be approximately 1,232 square feet with two bedrooms and one and 3/4 bath. It would also have expansion space in the basement. This plan encompasses a lot of things the HRA requires, and staff is still negotiating with the owners for brick or stone material along the front farade. Resizing the front columns was also discussed. Mr. Moran has agreed in concept to these changes, but they still need to be finalized. The right elevation faces east, the rear elevation faces north, and the left elevation faces west. This is the first proposal on a 50-foot lot in Fridley. Mr. Fernelius stated that in the fall of 2000, the City Council adopted a new overlay district that changed the status of the nonconforming 50-foot lots. People now have the option of redeveloping and rebuilding on these lots. Staff is excited about this plan and that it could show how to build on a smaller lot. The lot price is $36,020. The minimum value of the home and lot would have to be $135,000. Mr. Fernelius stated staff recommends the HRA award the sale of these properties. Mr. Meyer asked why a chunk was bit out of the high roof. Mr. Hickok stated that the ordinance talks about how close a garage can sit from the side property line and how close the roof can be from the side property line. There is a distinction from living area and garage. The garage can be five feet from the side property line, but living area has to remain at least ten feet back from the side property line. Initially, Mr. Moran was looking at the garage and living area in a uniform line continuing up. Staff indicated to him that he needed a variance or a redesign. Staff made suggestions about the redesign to tie the gable ends together in a more uniform design. The notch differs from the staff recommendation, because the developer dropped the garage roof back over the five feet of the garage that sticks out past the house. He has chosen not to carry the roof line which would create a six foot overhang for the dwelling area of the house. It could be done but would be a very deep overhang. Mr. Meyer stated that the main reason was to be get around the ordinance for zoning, but wouldn't it be smarter to go for a variance, because the notch looks awkward? Mr. Hickok stated that a variance is an option and this is the first of the 50-foot lots. City Council is concerned that people build within the setback parameters given on 50-foot lots and would encourage the builder to avoid that process. They could talk about a more uniform roof design. Mr. Meyer asked why more house roof could not be given to make it larger. Mr. Hickok stated that would require a variance. Mr. Meyer stated it seems odd to jump around the specifics of the law without trying to make the law reasonable. There are variances all over the City that Council grants. The variance is a standard tool. Mr. Hickok stated that would be an enlarged footprint to the house plan. They hope to avoid the variance process on the first of these 50-foot lots. Mr. Meyer asked if it was a five foot inset. Mr. Hickok stated it was. Mr. Meyer asked how close the house was to the other lot line. Mr. Fernelius stated it was ten feet off the property line on one side and five on the other. Mr. Meyer stated that Council has not given a mandate to never apply for a variance, and they want a nice looking house on the lot. If they say no, that is their privilege. Ms. Gabel asked how close the house is to the lot line on the other side. Mr. Fernelius stated he did not know, but it is probably ten feet on a 50-foot lot also. Ms. Schnabel stated that it is awkward and wonders if it could be modified. Mr. David Moran, builder, stated that on the left elevation he has a five-foot setback for the garage and that is how it worked out for the roof. He is not very fond of it. He could put on a deep overhang there to maintain the roof line, but it would look very steep from the back. Ms. Schnabel asked if he would like to take more time to refigure this. Mr. Moran stated he is comfortable with this, and he believes it will look better once it is built. He is going to live in this house and does not have problems with it. It was the easiest way to do it with the roofline. Mr. Meyer asked if there was a minimum square footage approval within the HRA's approval of the sale of the lot. Mr. Fernelius stated they are approving the plans in concept and are doing that when the development contract is approved. That is the mechanism that provides the approval. The plans he has submitted are approved. Mr. Meyer stated that he would like to vote individually on these two parcels. Ms. Schnabel asked if the first approval is the sale of the lot and then the approval is for the house plan? Mr. Fernelius stated that if the authorization to enter into the development contract is approved, they can come back with a revised plan. The process does not need another hearing. MOTION by Ms. Gabel, seconded by Mr. Meyer, to close the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING WAS CLOSED AT 8:00 P.M. MOTION by Mr. Meyer, seconded by Mr. Bajwa, to authorize the HRA to enter into a contract for private redevelopment with Wilkinson Construction for 5297 Lincoln Street and David Moran for 571 Lafayette Street. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. AUTHORIZATION TO ENTER INTO CONTRACT FOR PRIVATE REDEVELOPMENT WITH WILKINSON CONSTRUCTION FOR 5297 LINCOLN ST. N E.: Ms. Schnabel stated that her only concern is the brick on the front of the house by the front door and asked to discuss whether this is a possibility. MOTION by Mr. Bajwa, seconded by Mr. Meyer, to approve Resolution No. HRA 7-2001, "A Resolution Authorizing Execution and Delivery of a Contract for Private Redevelopment By and Between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, and Wilkinson Construction Company". UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 6. AUTHORIZATION TO ENTER INTO CONTRACT FOR PRIVATE REDEVELOPMENT WITH DAVID MORAN FOR 571 LAFAYETTE ST. NE: Mr. Fernelius stated both agreements are the same but have been modified to fit the particular circumstances of each project. The contract for private redevelopment is the document that spells out the responsibilities for both the builder and the HRA. This includes standard provisions that talk about representations, warranties, and conveyance of the property.. Construction dates and improvements are also included. A copy of the plans are referenced, and that is the hook to make sure they build what they say they are going to. Other provisions include real estate taxes, insurance, events of default, and related remedies available to the HRA. The dates still need to be finalized, but the closing should occur by the end of August. Construction should start within 30 - 45 days. Staff recommends the HRA approve both projects. Mr. Meyer asked if the resolution could be approved with the provision that the roof could be more regularized. Mr. Fernelius stated they could with the statement that the HRA reserves the rights to review the plans at a future meeting date for approval. Mr. Meyer stated they do not give the maximum amount of dollars for this in case the value is more expensive. Mr. Fernelius stated that is correct. MOTION by Mr. Meyer, seconded by Ms. Gabel, to approve Resolution No. HRA 8- 2001, "A Resolution Authorizing Execution and Delivery of a Contract for Private Redevelopment by and between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, and David M. Moran", with the understanding that the final review of the plan will be made by the HRA. Mr. Meyer stated that if the plans come back with the same notch in the roof without plans for a variance, where does that leave them with the contract? Mr. Fernelius stated that they have to work with the buyer, but the marching orders come from the HRA. They are going to take a look at avoiding the variance and be creative with the designs. Mr. Bajwa asked that staff present pictures with houses similar to this for a better idea of how it would actually look. Mr. Casserly stated that the redevelopment contract states that the project can proceed based on the construction plans approved by the City and the HRA. They cannot proceed with this project because the construction plans are not approved. The buyers are not going to convey title if those plans are not approved. This will not work very well. The HRA could approve the resolution subject to approval of a roof used in the plans. If a consensus is not reached, it has to come back to the HRA. The cost issue has to be sorted out as they go, and there is another problem if it is more costly with more square footage. Mr. Moran stated that the roof is minor and is easy to change. The roof could be angled down toward the corner, or there are a lot of different ways to do this that are very simple. Mr. Hickok stated there is a building solution that is not unusually in buildings. Mr. Meyer asked if the new possible plans would satisfy the ordinance. Mr. Hickok stated that the roofline would work. It carries up the garage and basically creates that space that could be carpentered with trusses finished and truncated to match the trusses below. Mr. Moran stated that there are many ways to do this. Ms. Schnabel stated that next month they could look at this with revised plans. Mr. Meyer stated that he feels they are trying so hard to avoid using the variance planning tool, and they are creating something odd in a very simple little house. MOTION by Mr. Meyer, seconded by Mr. Bajwa, to withdraw his first motion and to table this item. Ms. Gabel stated she does not see the variance as viable. She agrees with staff that tabling this and using a variance would be a good call. Is there a need to table this or incorporate something into the motion extending the roof to HRA approval? Mr. Moran stated that he would like to start as soon as possible. If the roofline is the only problem, he can work with staff to create an approved one. Mr. Fernelius stated staff would be happy to do that. MOTION by Mr. Meyer, seconded by Mr. Bajwa, to withdraw his motion to table Mr. Bajwa stated that there is not a reason to table this and would like to approve this with due process taking place between Mr. Hickok and Mr. Moran. Mr. Meyer stated that Mr. Casserly warned the HRA that approving this could cause certain problems. Mr. Casserly stated that they need to give direction as to how to accept future plans and the HRA can make any provision it wants on those. MOTION by Mr. Bajwa, seconded by Ms. Gabel, to amend the original motion approve the Resolution No. HRA 8-2001, but giving staff direction to design the roofline with Mr. Moran that would be approved by the HRA before construction. Mr. Meyer stated that he would vote against the motion, because it is unfortunate they have less than a perfect roof, and they are unwilling to ask the Council to use a variance. Ms. Gabel stated that the point is well taken, but it would add a great deal of time to the whole situation. A variance would probably extend this 60 days . Mr. Hickok stated that the variance process is not a simple mechanism to adjust the codes. It is an opportunity to allow someone to build where they otherwise could not. This asks for relief based on some kind of physical characteristic of land that makes it necessary to do it in the way being proposed in the variance as opposed to doing it in accordance with the law. There is not a physical characteristic of land here that would justify having staff making a recommendation of approval. These are simply lines on a piece of paper and no reason why those lines cannot be changed to meet all setbacks. Concern is the notched area and maybe a possible solution would be to drop it straight down and continue with carrying out the building farade. UPON A VOICE VOTE, COMMISSIONERS GABEL, BAJWA, AND SCHNABEL VOTING AYE, COMMISSIONER MEYER VOTING NAY, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED 3-1. 7. CONSIDER FIRST AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT WITH GATEWAY EAST REDEVELOPMENT LLC: Mr. Fernelius stated that this would change the closing date from June 1 to September 1, and the start of construction would be changed to October 1. The amendments were signed by the Chairperson and Executive Director, and this action is to ratify the signatures. Mr. Bajwa asked if the closing would take place on the 31St Mr. Fernelius stated that is correct. MOTION by Mr. Bajwa to ratify the First Amendment to Contract for Private Redevelopment with Gateway East Redevelopment LLC and to approve Resolution No. HRA 9-2001, "A Resolution Authorizing Execution and Delivery of the First Amendment to the Contract for Private Redevelopment by and between the Housing And Redevelopment Authority in and for the City of Fridley, Minnesota, and Gateway East Redevelopment LLC. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Casserly stated that the contract did provide for modification upon the agreement of both parties. There is a mortgage of several million and with all the issues going on, they wanted to bring more formality to this versus a letter. INFORMATION ITEMS: 8. SALVAGE YARD UPDATE: Mr. Hickok stated there were to be three phases to the salvage yard project.. The first phase was to be the Determan Browning phase. They brought on two executives that staff did not talk to earlier. They now have a different perspective with their 3-5 year plan. Their business has continued to grow, but the uncertainty with the gas prices had an affect on the industry. They have said that if the City gives them a building, they would be able to shift their focus to make that work. That was not on the table, but that is how busy and focused they are on their site. Mr. Hickok stated staff talked to the salvage yard owners and let them know they are phase 3 of the plan. They appeared to be interested in the project and possibly disheartened they were phase 3. The numbers were an important part of the discussion on the salvage yards. The City was looking at the Onan-Murphy tax increment funds to make this thing work. A compression of tax rates was an outcome of the Legislative session. With a 40% impact on our earnings in the tax increment district, it raises the discussion again about dollars. The City wants to focus on its priorities and needs to analyze each one of the tax increment districts to determine what kind of funds they would have in each of those districts. Ms. Schnabel stated that is a fair assessment to see what impact this will have on us. 9. DECONSTRUCTION POLICY: Mr. Fernelius stated that last fall the Environmental Quality & Energy Commission (EQEC) began looking at deconstruction, which is the process of salvaging materials as opposed to demolition and landfill. Staff used one property the HRA owned at 6175 East River Road. Deconstruction Services contracted with the City to salvage materials. There were some materials that could be salvaged, but most they could not salvage. Staff did not see a lot of savings in demolition costs. The EQEC has continued to work on this policy, but has not yet reviewed it with the City Council. The Commission wanted to update the HRA that this is making its way toward the Council. This would impact the HRA also. The policy would encourage deconstruction as an option with any project, if feasible; however, it does not obligate the HRA to do it. It covers HRA and City-owned properties and private remodeling. This will be discussed with Council later this fall. Ms. Gabel asked what the purpose of keeping a report of recovered materials was. Mr. Fernelius stated that it would document what is actually removed and when deconstruction was evaluated as an option. This would be put in the address file including building and demolition permits. Ms. Gabel stated that it is a good idea, but she did not want to add to the paperwork. Mr. Fernelius stated that the report would be prepared by the company doing the work. The City would just file it. Mr. Meyer stated that the successful low bidder has done a good job of sorting out the salvageable material. Junk people, office people, and all sorts of specialty people come in for a bid for all the things they see. They would use those sub-bids to get the project. That does exactly what this is intended for. Is this creating more paperwork for something being accomplished already? He is all in favor of recycling. Mr. Fernelius stated that there is not a whole lot of demolition that goes on. The larger issue is the statement that the City is making by adopting that. The intent is to be practical and where it does not work, they do not have to do it. Ms. Gabel stated that there is a social responsibility to reduce dumpage of any kind wherever and whenever they can. Ms. Schnabel asked what they are saying when they prefer to have the end buyer remove the item directly rather than warehouse it off site. Mr. Fernelius stated that it has worked in Minneapolis that this company will come in and salvage materials that they can take with them and bring back to their warehouse facility in Minneapolis where they allow people to come in and purchase materials. They prefer to have the buyer come out to the house for the larger items to remove them. That saves the labor cost and warehouse cost. Ms. Gabel asked if the buyer could be an individual or maybe a company like Art and Architecture. Mr. Fernelius stated there is a list at their facility of homes that are eligible for this. They know in advance what materials exist for purchase. Ms. Schnabel asked if it was supervised when they send people out to do that. Mr. Fernelius stated that he does not know that, but the project involved in here had them involved in removing the material. Ms. Schnabel stated that was important to make sure they are taking only what they are supposed to. Ms. Gabel stated it was also important if they were any injuries. 10. HOTEL DEVELOPMENT: Mr. Hickok stated that Mr. John Livingston, Managing Partner of Cognesente, LLP, is interested in developing a hotel on the United Stores' property. Mr. Livingston was also interested in developing a hotel on the Medtronic's site and had an agreement with MEPC, the original developer, for a hotel development. He is looking for a two acre site for a 100 room hotel and the United Stores' site is 2.4 acres. It has access from 53�a with a joint drive back into the corner. Mr. Livingston has asked what the City would like to see for hotel development here. He asked about conference facilities and intended to talk to Medtronic and Onan to see if they need conference space. Would the HRA, City Council, and City be interested in assigning a redevelopment designation to the land south of the United Stores property to 53�d? He is interested in the City's thoughts first before he talks about redevelopment with other companies. He was hoping to get feedback from the HRA about what they were envisioning. Mr. Meyer stated this refers to the Fridley Columbia Heights Task Force. What has happened to that? One of the main topics was a hotel amenity for the sake of Medtronic and were there going to be attempts to approach them for what they want to see. Ms. Gabel asked who chairs that task force. Mr. Meyer stated that Bob Barnette and the City Manager of Columbia Heights are the co-chairs. Mr. Hickok stated that on February 26 all the members involved met with the idea it would be the first of two meetings. It would be a public meeting involving citizens for the end cap to the discussion. Staff, too, is concerned that it has taken so long after that public forum and now to come back with an end product. The Technical Advisory Committee has continued to meet and evaluate the outcomes of the market and demographic study. One continual and informative thing is the progress made by the demographic folks. The Committee is close to having the final layout of the document that will go to the Task Force, and then the public forum. The outcome is continual in looking at ourselves as a region as opposed to individual entities. The hotel discussion is part of this, and they need to talk to Task Force about their thoughts on 53�a Mr. Meyer stated he feels it is a second rate hotel. Many people were hoping they would get a more substantial hotel in the area. Mr. Fernelius stated that the market analysis explored those issues. The five star hotel option is not going to pan out and they did talk to Medtronic about their needs. This is a market reality to what would be supported. Mr. Hickok stated that is correct. Ms. Schnabel stated that the community itself should be looked at. She sees Fridley and Columbia Heights as more of working class community. Mr. Casserly stated that the issue is what are the total redevelopment prospects in the southwest quadrant? Staff could look at the options and how the HRA should be proactive in terms of redevelopment. The joint efforts with Columbia Heights are wonderful but may not impact how the redevelopment would occur in that particular quadrant. Ms. Schnabel asked if they are looking at additional properties next to United Stores. Mr. Fernelius stated they have talked about another joint meeting with City Council in September so that could be discussed then. Ms. Gabel stated that more demographic information would be available then. Mr. Meyer stated that MEPC had thousands of realtors come out and look at the City. Their answers were that this was sort of a blue collar community, and the 40 acres were not going to have anything major built. Medtronic rescued us all from that determination. The world can change, and maybe they can get a good hotel. Ms. Schnabel stated that she did not think a good hotel could be built on the United Stores lot alone. Mr. Meyer stated that is true. Fridley and Columbia Heights are not competing, but working together to enhance by joint efforts. Mr. Bajwa stated that the fact that Columbia Heights may work with us in the future should be looked at. Hotel properties do attract a lot of people, that adds to the economy's value with restaurants and other retail outlets. Hotel property does make sense and there is more than one option here. Ms. Schnabel stated that may not be the best location and would like to see what these surveys show and get some statistics. Ms. Gabel asked if they know anything about other communities pursuing a hotel and what type they are after? Mr. Fernelius stated that general speculation he has heard involves New Brighton at Silver Lake Road at the Lutz property where an 80-room hotel may be possible. There may also be an 80- unit senior project with a restaurant in that quadrant. This would take a redevelopment plan and new designations. Mr. Hickok stated that the discussion of the Joint Task Force was not site specific. The report will not talk about sites like this or specifically identify sites better for hotels. Mr. Livingston states that this is the best quadrant in this several mile stretch along I-694 for a hotel. The four or five star hotel comment by the market analyst was not done to make the City feel bad, but identified that it requires a certain synergy that they cannot create to cause that kind of hotel to be located here. The market analyst looked at what kinds of entities it takes for a hotel to count on what is here right now for the patrons. That will govern what will happen with hotels. They need an understanding about the type of quadrant it is with retail and what is the best strategy for access into the site. Those things are down the road. In spite of the high cost of this property, he thinks Mr. Livingston intends to move ahead anyway; and provided he could build his hotel meeting setbacks and code, the site could be built on and it is not then a redevelopment. They may get a hotel tucked back there in the corner, because it was something that could be done according to the zoning. They are going to see an interesting push for development with or without HRA. Mr. Bajwa asked for clarification of the United Stores' owner. Mr. Hickok stated that United Stores has made a commitment to sell and move at such time the buyer is able to take over the site. They see it as an opportunity for another retailer to buy their store and have to price it that way because the building is in decent shape. The other uses around there are Ricky's Embers, Ashland Oil, a multi-tenant center, and a car wash. The developer indicated that he has talked to those folks about their needs in the event of a redevelopment. Mr. Bajwa asked what the HRA's involvement should be. Mr. Hickok stated that if they want this to happen, a global look should be taken at that quadrant and focus on what the end product is that they would like to see Staff could be directed to start working on the proper end solution. 11. OTHER BUSINESS: Mr. Bajwa stated he would like a report on what the Loan Servicing Report really means that was included in the packet tonight. Is 11.33% of loans past due or 30 days or 90 days late? Ms. Schnabel stated that they usually have a report with what has been happening on the whole. They asked to be updated on moneys coming in and what is not to keep track. Mr. Bajwa asked if they have an acceptable limit. Mr. Fernelius stated that they established a loan delinquency policy, but he could provide a copy of that and other policies related to the loan program. The numbers of delinquency has been going up related to changes in the economy possibly. There are not alarm bells at this point, and CRF is contracted to stay on top of this. The HRA has recourse on default with provisions in the policy to deal with that. Mr. Bajwa stated they should set a limit. At some point in time, there should be an alarm bell that goes off. It is above the10% initial level. Mr. Fernelius stated they could certainly do that. Ms. Schnabel asked if he meant overall or the 90 day past due. Mr. Bajwa stated that he meant overall past due. Ms. Gabel stated that reports used to be more detailed. Mr. Fernelius stated that they included loan origination. Ms. Gabel stated that she would like that. Mr. Fernelius stated that they could include that in the future. Ms. Schnabel asked about the memorandum sent by Jim O'Meara to Mr. Fernelius. Mr. Fernelius stated that it provides a summary in terms of what happened at the Legislature and how it affected tax increment. Mr. Casserly will do comprehensive analyses of tax increment districts and how it relates to the law changes. ADJOURNMENT MOTION by Ms. Gabel, seconded by Mr. Bajwa, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED AND THE AUGUST 2, 2001, MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY WAS ADJOURNED AT 9:58 P.M. Respectfully submitted, Signe L. Johnson Recording Secretary