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HRA 08/07/2003 - 29522� CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 7. 2003 CALL TO ORDER: Vice-Chairperson Virginia Schnabel called the August 7, 2003, Housing and Redevelopment Authority meeting to order at 7:32 p.m. ROLL CALL: Members Present: Virginia Schnabel, Pat Gabel, Bill Holm Members Absent: Larry Commers, John Meyer Others Present: Grant Femelius, Assistant HRA Director Scott Hickok, Community Development Director Jim Casserly, Development Consultant Paul Eisenmenger, HRA Accountant APPROVE THE JULY 10. 2003 HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES: MOTION by Ms. Gabel, seconded by Mr. Holm, to approve the minutes as written. ^ UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. ACTION ITEMS: 1. CLAIMS AND EXPENSES MOTION made by Ms. Gabel, seconded by Mr. Holm to approve the claims and expenses as presented. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. AUTHORIZATION TO BEGIN NEGOTIATIONS WITH PROPERTY OWNERS FOR GATEWAY WEST Mr. Grant Fernelius, Assistant HRA Director, explained that after the July 10, 2003, HRA meeting, staff was contacted by some of the homeowners living north of the former Werner's Fumiture site. Three of the four homeowners met privately and decided to pursue negotiations with staff. Two of the three homeowners agreed to have their homes appraised. Those appraisals are currently underway and should be completed within the next week. Staff plans to have the appraisals completed and negotiate conditional offers with the owners. All negotiations will be subject to final HRA approval. Estimates on relocation costs will be part of the negotiation process. Staff anticipates � that the negotiations will take place during the month of August and that most or all of the offers would be ready for consideration at the September meeting. HOUSING & REDEVELOPMENT AUTHORITY MEETING, AUGUST 7 2003 Pa e 2 Staff is also currently negotiating with Anoka County about using "recapturedn CDBG � funds (funds that have been "unspent" by other cities and °recaptured" by Anoka County) to help with some of the Gateway West project costs. Mr. Fernelius stated that also during the July 10�' HRA meeting, citizen concems were made about the condition of rental property at Hyde Park. In response to those concerns, staff plans to meet with representatives of the Fire Department, Building Inspections and Code Enforcement staff to discuss potential strategies to address citizen concerns. The Fire Department conducts inspections of rental properties once every four years. The Hyde Park area is scheduled for inspections this year, although the rental inspections staff has said that it probably won't happen until next year. Mr. Fernelius stated staff recommends that the HRA authorize staff to initiate appraisals and negotiations with the following properly owners: 5917 3�d Street, 5923 3'� Street, 5925 3`� Street, 5931 3`� Street, 5955 3`� Street. All offers would be made conditional and subject to approval by the HRA. Staff will negotiate the offers within established guidelines; owners will be offered relocation benefits (as prescribed under the Uniform Relocation Act); each homeowner will receive separate offers and staff will have relocation estimates prior to final approval of each transaction. MOTION by Ms. Gabel, seconded by Mr. Holm to authorize staff to initiate appraisals and negotiations with the following properly owners: 5917 3`� Street, 5923 3`� Street, 5925 3`� Street, 5931 3`� Street, 5955 3'� Street. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRSON SCHNABEL � DECLARED THE MOTION CARRIED UNANIMOUSLY. INFORMATION ITEMS: 3. 2002 FINANCIAL STATEMENTS Mr. Femelius stated the Finance Director would like to defer a formal presentation and discussion of this item until the September meeting. The Authority does not need to take any action at this time. Ms. Schnabel indicated that the item is received and would be deferred until the September Meeting. 4. FOLLOW-UP ON HOUSING PROGRAM DISCUSSION Mr. Grant Fernelius, Assistant Executive Director, said that at the June 5, 2003, HRA meeting, several questions were asked about the housing program. Staff prepared a memo outlining responses to the Authority's questions (memo attached). This item was placed on the July agenda, but was tabled due to the absence of Commissioner Schnabel. Mr. Fernelius said the first question was what is the breakdown that shows how much the program costs the HRA to administer? The costs shown on the memo were program marketing, loan origination fees, inspection fees, remodeling advisor fees, operation insulation fees and loan servicing fees. Mr. Fernelius explained that in 2002 there was a � peak in costs ($35,814) and so far in 2003 they have declined ($10,787). Loan origination fees have dropped off compared to prior years. HOUSING & REDEVELOPMENT AUTHORITY MEETING, AUGUST 7, 2003 Page 3 ^ Ms. Schnabel commented that it does appear that costs are dropping over last year. Mr. Fernelius said he thought there were factors that have affected the drop in costs such as the economy, but the fund balance has been set up in the program so that the City is prepared for future growth and the program is set up to continue into the future. 5. VACANT BUILDING UPDATE Mr. Scott Hickok, Community Development Director, gave a summary on what is happening with vacant buildings in Fridley. The American Excelsior Building at 140 81St Avenue was sold to a company called AR North America, Inc. AR North America, Inc. is a world leader in high pressure plunger pump manufacturing, portable electric pressure washers, high performance accessory components, and other related accessories for pressure washing, car wash, sewer cleaning, reverse osmosis/desalination, and other markets where high pressure water plunger pumps and related accessories are utilized. Mr. Hickok stated the Safetran Building was sold to a company called Electric Motor Supply Company (EMSCO). This company is a family owned business located in Minneapolis and has been selling reconditioned electrical equipment for over fifty years. EMSCO is one of the industry's leading suppliers of quality new, used and reconditioned electrical equipment. 6. MONTHLY HOUSING REPORT � Mr. Grant Fernelius, Assistant HRA Director, commented that when the report was prepared, staff did not have a loan servicing report available, so the loan servicing report for the month of July was a hand-out at this evening. Ms. Schnabel noted that the delinquency rate is low at 4.1 %, and that is positive. Mr. Holm commented that most of the delinquency dollars are in the °less than 60 days late° category which is also positive. ADJOURNMENT MOTION made Mr. Holm, seconded by Ms. Gabel, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED AND THE AUGUST 7, 2003 MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY ADJOURNED AT 8:09 P.M. RespectFully submitted, � e�Le.� Kathy Fisch � Recording Secretary ��