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HRA 03/05/2009 - 29543CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION MARCH 5, 2009 CALL TO ORDER: Chairperson Pro Tem Gabel called the Housing and Redevelopment Authority to order at 7:04 p.m. ROLL CALL: MEMBERS PRESENT: Pat Gabel William Holm Steve Billings John Meyer MEMBERS ABSENT: Larry Commers OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Scott Hickok, Community Development Director Mike Jeziorski, Accountant ACTION ITEMS: 1. Approval of Ea�penditures Mike Jeziorski, Accountant, said there was a correction to be made on the back page, under land title for $90, there should also be another charge of $347,023. MOTION by Commissioner Holm to approve the expenditures as presented. Seconded by Commissioner Billings. UPON UNAPTIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED. 2. Approval of January 8, 2009 Meeting Minutes Scott Hickok, Community Development Director, asked for the date to be changed to January 8, 2009. Chairperson Pro Tem Gabel asked on page two toward the bottom to read "Commissioner Gabel suggested that HRA doesn't ask Mr. Wilson to spend anvmoYe time on the Tae Kwan Do purchase because it isn't going anywhere." MOTION by Commissioner Holm to approve the minutes as amended. Seconded by Commissioner Meyer. UPON UNAPTIMOU5 VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED. 3. Approval of Interfund Loan � Mike Jeziorski, Accountant, recapped the Northstar Related Expenditures as follows: Land Acquisition -$3,168,000, Legal Fees -$170,599, Lawsuit Settlement -$347,023 for a total of $3,685,621. The Sources of Funding for these Expenditures are as follows: Winfield TIF #7 - $578,000, Onan TIF #9 - $1,690,000, University TIF #11 - $460,511, McGlynn TIF #12 - $344,51 l, Satellite TIF #13 -$612,599 for a total of $3,685,621. Mr. Jeziorski said that the purpose of the interfund loan is to bridge the temporary cash flow deficit for TIF #11, 12, and 13. The interfund loan amounts are: University TIF #11 -$107,000, McGlynn TIF #12 -$104,000, Satellite TIF #13 -$162,000. We anticipate these loans being paid back within foux years with �he increment generated by these districts. Staff recommends that the Commission pass this resolution approving the interfund loans between these districts and the General Fund. MOTION by Commissioner Billings to approve the Resolution of the Interfund Loan as presented. Seconded by Commissioner Holm. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED. 4. Approval of Contract Purchase Agreement(s) — Gateway Northeast Paul Bolin, HRA Assistant Executive Director, said that the Sikh Society will agree to terms of the purchase agreement, but by laws require that 2/3 of their membership vote to approve a111and sales/purchases. There were not enough members present Sunday to vote on the purchase agreement. Mr. Bolin said that 5905 University Avenue, Select Products, agreed to terms of the purchase agreement two 2 weeks ago. Late yesterday their attorney suggested 43 changes (mostly minor). Staff recommends approval of this purchase agreement. Chairperson Pro Tem Gabel asked if HRA had any liability for taxes when renting property out. Mr. Bolin said that if a person was renting the building and axe not a non profit organization, the rent would not be exempt. Commissioner Meyer noticed that both proposals did not include relocation costs. As a generality, he asked what kind of cost savings that represented. He wondered now much the city would pay if the seller was asking for relocation costs. Mr. Bolin said that the state does give some flexibility. The person acquiring the property can agree to a fixed payment built into the purchase price or other options that can get very expensive. Commissioner Meyer said he was just tiying to understand what the cost savings would be to help accept some of the expenses presented tonight. Chairperson Pro Tem Gabel asked a question on page 7, item 25, why there is a paragraph about eminent domain as that information does not seem to be what HRA agreed upon. Mr. Bolin said that the statement came at the seller's request which is much like what HRA did with the rail site. This gives them certain tax advantages, additional time to reinvest the proceeds from the sale etc. Chairperson Pro Tem Gabel asked if this opened HRA up to any liability. Mr. Bolin answered no. Commissioner Billings said the landowner receives a taac break if the property is acquired by eminent domain or the threat of eminent domain. Commissioner Holm noted that the Select Products purchase agreement has three different pin numbers. He asked if this meant there were three different properties HRA was acquiring. Mr. Bolin said that is correct, the property has three separate pin numbers. MOTION by Commissioner Meyer to approve the contract purchase agreement of 5905 University Avenue, Select Product Company, and to authorize signatuxe by Chairperson Pro Tem Gabel. Seconded by Commissioner Holm. UPON UNAlvIMOU5 VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY Commissioner Billings asked that when the rest of the parcels are presented if HRA could get a detailed breakdown of costs so the square footage cost can be compared. Mr. Bolin said that would not be a problem. INFORMATIONAL ITEMS 1. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said that in February one RLF Loan was closed which makes one loan year to date. There was also one Remodeling Advisor Visits making one visit year to date. , Chairperson Pro Tem Gabel asked for an update on loans and delinquencies for the next meeting. Mr. Bolin said that can be provided in the packet for the next meeting. Mr. Bolin said that the l lth Annual H&G Show held this past Saturday. Over 1,000 people attended and Fridley was well represented, staff inet with over 50 residents over the course of the day. 2. East Moore Lake Landscaping Improvement Project Scott Hickok, Community Development Director, said that over the last few years, city staff, Council and Commission members, as well as the general public have expressed concems about the overall condition of the landscaped retaining walls on the boulevards and the medians along East Moore Lake Drive, between Highway 65 and Central Avenue. Mr. Hickok said that as part of the redevelopment of this area in 1988, a Landscape and Maintenance Agreement was drawn up between the property owners and the City. In that agreement, the City agreed to construct and install the landscaping in the boulevard and medians, with the condition that the property owners maintain the quality of landscape that would be consistent with a first class business park. Mr. Hickok said that some of the property owners have been notified by the City in the past for their lack of maintenance of these landscaped areas. A few years ago the City even coordinated with the property owners to hire a contractor to specifically maintaan these areas, in the hopes that with some extra attention, the shrubs/plants could be brought back to life and revitalized. Staff was disappointed with the contractor's lack of effort in restoring the plant material; simply mowing and selectively pruning the vegetation did not bring back the appearance of the planting areas. It also should be pointed out that the majority of the existing plants in the landscaped beds have been there since 1988 and due to the lack of maintenance, have probably met their life expectancy. Mr. Hickok said that in an effort to revitalize this prominent area of Fridley, City staff has met with a landscape company to develop a new landscape plan for the retaining wall beddings and medians along East Moore Lake Drive. We have scheduled a meeting with the property owners for March 11, 2009 to review the proposed plan and to ask for their participation in the project. City staff has determined that the best way to finance this project would be to have all properiy owners involved equally split the costs of the project. The project entails the removal and disposal of the unsalvageable plant material, trees, sod, and landscape rock and installation of new plants/shrubs and trees, plus preparing the landscape beds with new edging and rock/mulch. Mr. Hickok said that staff asks HRA to consider sharing 1/5 of the cost of the proposed redevelopment project (estimated cost is $10,817.40). Staff is not asking for the commitment at this time, simply HRA's consideration. A meeting with the other four property owners will be held on Wednesday March 4, 2009. The purpose of that meeting will be to present the project and to request their consideration as well. Commissioner Meyer asked if this item will go out for competitive bids. Mr. Hickok said yes but the proposal in this presentation came to staff. Staff's interest is to go out into the market and offer the opportunity to other contractors to make certain this project has the best product and value. Commissioner Meyer said that the problem is that one contractor's idea looks very nice and it will be hard to judge these because someone else can piggyback on this idea. Mr. Hickok said Commissioner Meyer has a valid point but this type of contractor takes great pride on their artistry and want to put their signature on the landscaping proposal which should present different projects to evaluate. Chairperson Pro Tem Gabel asked if someone was available to pull all the ideas together. Mr. Hickok said that is something that may be the silver lining in this process. There is a desire to pull ideas together and one thing staff heard back is that they like the idea of the consistent mowing and wanting to keep the properties flowing, looking like one piece of property. Merchant organizations help pay for uniformity and this may spring some new ideas. Chairperson Pro Tem Gabel asked if the city participates in this, how the maintenance comes about. Mr. Hickok said that one thing staff learned was to look at things like irrigation and early contracts/agreements such as HIZA paying for irrigation to make sure that it still operates and continues to look well maintained. 'The city has made some repairs to the i.rrigation but the system remains healthy. Irrigation is the key to good looking landscaping especially when there is so much unpredictable weather. If the local merchants aren't going to take care of the landscaping, he city will take care of it and bill the merchants. Chairperson Pro Tem Gabel said tha� the city needs some ma.nner for continued maintenance because maintenance is not free no matter who does the maintenance. She asked for staff to address this at the next meeting. Chairperson Pro Tem Gabel commented on the ground breaking ceremony for the Northstar Rail. Everyone was very pleased about the community rail. Commissioner Holm said the groundbreaking ceremony had a great turnout. Mr. Bolin said that over 200 people were at the groundbreaking ceremony. Chairperson Pro Tem Gabel said that staff has done an outstanding job at making this happen. ADJOURNMENT: MOTION by Commissioner Meyer to adjourn. Seconded by Commissioner Holm. UPON UNAlvIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 8:00 P.M. Respectfully Submitte�i., �� Krista Monsrud Recording Secretary a � CITY OF FRIDLEY SIGN-IN SHEET HOUSING & REDEVELOPMENT AUTHORITY MEETING v� v� Name and Address Agenda Item of Interest