Loading...
HRA 06/04/2009 - 29545IT t CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION JUNE 4, 2009 CALL TO ORDER: Chairperson Commers called the Housing and Redevelopment Authority to order at 7:10 p.m. ROLL CALL: MEMBERS PRESENT: William Holm Pat Gabel Larry Commers John Meyer MEMBERS ABSENT: Steve Billings OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Scott Hickok, Community Development Director Gay Cerney, HRA Attorney Jim Casserly, Development Consultant ACTION ITEMS: 1. Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures as presented. Seconded by Commissioner Gabel. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. 2. Approval of May 7, 2009 Meeting Minutes MOTION by Commissioner Holm to approve the minutes as presented. Seconded by Commissioner Gabel. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. 3. Authorization to initiate process for creation of TIF District #20 (Northstar Transit) Paul Bolin, HRA Assistant Executive Director, said that the 2007 and 2008 Legislative Sessions gave the City the ability to create a special TIF district to fund public improvements around the Northstar 5tation area. Improvements include: sidewalk and trail connections, future parking decks, utility and street upgrades, acquisitions, relocations, demolitions, site preparation, etc. Mr. Bolin said that the future JLT site development will be a large contributor of increment for funding these improvements. While JLT has no immediate plans for development, the district must be created prior to issuance of any building permits. Staff and legal counsel have developed a timeline for creation of the district and a draft TIF plan laying out potential development scenarios. Staff is asking that the HRA, following our discussion with Attorney Casserly, approve a motion authorizing staff to move forward with the statutory requirements for creating the Northstar Transit TIF District. The Cit� Council is being asked to set the Public Hearing for the districts creation at their August 10 meeting. Chairperson Commers said that it looked to him that it is well laid out in terms of the district and phases. He noted that of the $48.OM expected to be generated in this plan, $27.0-$28.OM is from the JLT or first phase. Jim Casserly, Development Consultant, said that is correct. T'hat part requires the least amount of public investment and has the option of being most densely developed if that would happen. There is a potential of a substantial amount of revenue to be accrued from that site. There isn't really a right or wrong answer to develop this district but the question is if it is reasonable to do it at this time. Some of these areas will not have development on site for quite some time. This analysis was put together to show the potential of a fully developed area. The analysis that would be prepared for the tax increment plan would reflect more revenues than shown on this plan. Chairperson Commers asked if there is no development on the JLT site if the development would be able to go onto phase two because some money needs to be generated before moving forward. Mr. Casserly said that other sites could develop in different orders but staff is trying to keep this as realistic as possible. Something is needed that has some significance, not necessarily tax increments, but that seems to be the source available to rely on for these type of activities. Chairperson Commers asked if excess funds were a�vailable in other districts could be transferred to this district. Mr. Casserly answered yes, but no revenues from this site could be transferred out to others. Commissioner Holm asked if the size of the district was defined by sta.tute or if the district could include areas not currently listed in the recommendation. Mr. Casserly said that the statute specifies the properties that can be included. They are identified by pin number. Commissioner Meyer said that he would like to explore the timing of whether or not to create a TIF district. He asked if the developer came in and took out a building permit if that would mean that area could not be included in the TIF district. Mr. Casserly said that is correct, that parcel would not be included. The city would not get the advantage of the increased value of that individual parcel. Commissioner Meyer asked if there was a law that says when the building permit is issued that the parcel is excluded. Mr. Casserly said that if the permit is pulled prior to the public hearing then it is excluded. The process takes about 75 days and there are a series of statutory guidelines to be followed. Commissioner Gabel said that something is needed that is going to generate a high dollar in order to establish funds for some of the other things so if the district isn't created and someone pulls a permit, part of the potential revenue will be lost. Mr. Casserly said that based on what is known at this time that is the area that appears to be available for the greatest amount of development because it is clean and ready to go. Commissioner Holm asked if the establishment of a TIF district promoted activity of development. Mr. Casserly said that the city intends to maximize its development and has received special legislation for this development. The city wants to maximize the development. Commissioner Holm was wondering why HRA shouldn't move ahead tonight and approve the TIF district. Chairperson Commers had an objection with the proposal submitted because it says JLT could get $84.OM from the TIF district. The motion could be modtfied but the first step doesn't gain anything to set up because there is no revenue to capture at this time. If someone comes in to develop the area there would more than likely be adequate time to create a TIF district. If a Walmart goes in that area it will be a big disappointment. Commissioner Holm said that his concern is that the dollars don't make sense at this time because there is nothing to support it. Another concern is having a public hearing when the plan is cunently unknown. This is an ideal opportunity for the city and somehow a developer needs to be found to carry it out to some extent. He asked if there was a way not to approve the Walmart deal. Scott Hickok, Community Development Director, said that if the footprint of the building was modified it would need to come back to the Council. Beyond that if Walmart came in with a plan, a permit would be issued. Commissioner Gabel asked how these plans were made without a plan. Mr. Hickok said that this was a very unique and less than perfect rezoning process. It started with an idea and a concept before the Council sometime ago. JLT came to Council with the belief the building would need to be demolished because the market was very slim for the type of building they had. Even if the site would be used as an industrial site the building would still need to go. JLT thought the site would best be used as a commercial site which would require rezoning. JLT said they had a concept plan with about 200,000 sq. ft. of retail and 90,000 sq. ft. of office space and presented that plan as part of their tax base revitalization applications as well as the zoning application. Mr. Hickok said that there was a request of over $300,000 for asbestos clean up and Met Council passed on that request saying the development wasn't dense enough and not enough funding was available for all applications that were received. JLT came back with other plans and thought they could do the 200,000 sq. ft. of retail and 90,000 sq. ft. of office space. The Met Council then approved a$168,000 asbestos clean up package. Mr. Hickok said that Council approved a first and second reading and gave JLT time to return with an official plan within 24 months. After the 24 months elapsed, the economic downslide, and JLT asked for another 12 month extension. In those months, a retailer came to JLT with a proposal. Mr. Hickok said that ultimately staff saw this site as commercial. Staff still thinks the rezoning was correct but it will be touch and go to make sure the City ultimately gets the development they seek. For sure staff does not want a big box to stand alone on that site. Commissioner Gabel asked if this was made into a TIF district, how much control would HRA have as to what will go on that site. Chairperson Commers said that HRA has no control. Commissioner Gabel asked if JLT says that they will develop the store how much control HRA would have. Mr. Hickok said that then Council will have to decide if it impacts the zoning. Commissioner Gabel asked what the optimum square footage staff is looking for. Chairperson Commers said that they are looking for $27.OM to generate from this project. Commissioner Holm asked what happens if the project on the JLT site only generated half of those TIF dollars. He asked what would happen to the project and if phase four would still happen. Mr. Casserly said that he was not sure what all the grants are what can be achieved. If less revenue is received from a site other sources of money will need to be sought out. Clearly great needs for revenue are needed on this site. Commissioner Holm asked if the TIF district should be approved on a specific dollar amount or if the area should be developed based on a concept of an area to redevelop. His preference would be to defer action for a month and review the numbers; discuss this as a concept rather than hard dollars on what parcels would generate. Chairperson Commers said that the question is if HRA should go out at this point or defer to a later date. Commissioner Holm said that HRA is faced with some risks and should proceed so no parcels are lost. Chairperson Commers said that the risk is that any revenue the JLT site would generate would be lost. Mr. Casserly said that there is an unusual problem with this and normally we would have a better idea of what the potential is. In this situation the legislature didn't allow us to set up multiple districts within this area. The goal was to create one or more districts in this area but that idea was not adopted by the legislature. Parcels can be dropped out of the district and if they qualify for another part of a district, they can be taken out and placed into other districts. This district allows us to include all parcels as a redevelopment district. This will always be a planning tool as we will never have enough of the analysis to go through all of the phases over the next 8-10 years. MOTION by Commissioner Meyer to table the authorization to initiate process for creation of TIF District #20 (Northstar Transit). Seconded by Commissioner Gabel. UPON VOICE VOTE, COMMISSIONER GABEL, COMMISSIONER MEYER AND CHAIRPERSON COMMERS VOTING AYE, COMMISSIONER HOLM VOTING NAY, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED ON A THREE TO ONE VOTE 4. Authorization for independent appraisals for proposed Gateway West Residential New Construction Program Paul Bolin, HRA Assistant Executive Director, said that last month the HRA terminated exclusive development agreement with Blue Print Homes. Staff explored options for constructing homes on the remaining nine lots. The following options were explored: • RFP — exclusive builder � Sell lots through a realtor/MLS • GWHDP — modeled after infill program Mr. Bolin said that a Residential New Construction Program would allow homebuyers and builders to reserve a lot for up to 60 days. Plans are developed, reviewed and approved by HRA to ensure compatibility with the existing homes. Financing would then be lined up - both construction and permanent. The Builder and HRA would sign a development contract outlining all terms. HRA would sell the lot to the builder and construction would start. Staff is requesting authorization to hire an independent appraiser to review the lots and help set initial lot prices. Financing for the lots will be dependent upon a fair market appraisal. Staff is interested in receiving HRA's comments and will integrate them into a final draft for consideration at the next meeting. MOTION by Commissioner Gabel to authorize an appraiser to give value on the lots. Seconded by Commissioner Holm. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. Commissioner Meyer noted that there is no minimum square footage on the memo and asked if there should be a guide for square footage. Mr. Bolin said that there is a minimum square footage in the city zoning code and the number can be reflected in the document. Scott Hickok, Community Development Director, said that a one level home needs to be 1,020 square feet and a split level is 900 per living level so city code is a fair reflection in comparison to what homes were being built. This is what has been reflected in the homes that have been built and with the lots only being 60 square feet wide it is adequate. INFORMATIONAL ITEMS: 1. Legislative Update — Housing Replacement Program Paul Bolin, HRA Assistant Executive Director, said that this item was approved by both houses but was dropped at the last minute. This will most likely be approved early next session. 2. Update on Potential TIF District for Columbia Arena Redevelopment Paul Bolin, HRA Assistant Executive Director, said that Attorney Casserly met with the developer early last month and has had ongoing dialogue. The developer is gathering additional information needed for a TIF analysis. This process is slow due to the number of players involved in the potential development. Jim Casserly, Development Consultant, said that the developer is paying $4.OM for this site and the costs are far in excess of that amount. This is a$25.0-$30.OM project and today the developers asked for an informal work session. This is a very complicated project. Chairperson Commers said that this seems to be more than what guidelines allow. He would be interested in a working session but would like something in writing first so HRA would have information to engage in the meeting. It was decided to meet at 7:30 p.m. Tuesday, June 23rd for a work session. 3. Update on Fairview/Columbia Park Sign Lease Agreement Scott Hickok, Community Development Director, said that staff has met with the sign contractor and the person on the administrative staff about the sign location. There will be three trees that will need to be relocated and three trees will be replanted to make an attractive location. The message board will be controlled by the City of Fridley. 120 square feet is not an enormous sign but with the electronic technology it is the right proportion for the messages needed to go on the sign. The City of Fridley will be listed on the top in permanent signage and the changeable message below will have messages put on by the city. The Fairview signage will be on the bottom of the sign with a colored background. T'he entire upper portion of the sign will be for Fridley and the lower Fairview portion is only for Fairview. Commissioner Gabel asked for clarification that Fairview is putting up the sign and paying for it and Fridley will control it. Mr. Hickok answered yes, consider this a gift. Chairperson Commers asked what Council thought of this idea. Mr. Hickok said that this will be discussed at Monday's meeting. � Council has been interested in changing out this sign for many years but it has not been in the budget. Commissioner Gabel asked who take will take care of upkeep of the sign. Mr. Hickok said that hasn't been decided yet. 4. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said that in May one loan was closed making a total of four year to date. In May three Remodeling Advisor Visits were done making a total of five year to date. NONAGENDA UPDATE: Paul Bolin, HRA Assistant Executive Director, said that the Alano Society may need another month extension to their lease. Staff is asking HRA to authorize Paul to work with Gay Cerney to extend the lease with the same terms until October 1 St, 2009. MOTION by Commissioner Gabel to authorize staff and Council be authorize extension of existing lease on property. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. ADJOURNMENT: MOTION by Commissioner Gabel to adjourn. Seconded by Commissioner Holm. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 9:00 P.M. Respectfully Submitted, ��t�a. VV16�3�� �. Krista Monsrud, Recording Secretary . r CITY OF FRIDLEY SIGN-IN SHEET HOUSING & REDEVELOPMENT AUTHORITY MEETING _ (� --------------------------------------------------------------------------- --------------------------------------------------------------------------- Name and Address Agenda Item of Interest