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HRA 10/01/2009 - 29548!t CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION OCTOBER 1, 2009 CALL TO ORDER: Chairperson Pro Tem Gabel called the HRA Meeting to order at 7:01 p.m. ROLL CALL: MEMBERS PRESENT: Pat Gabel John Meyer William Holm MEMBERS ABSENT: Larry Commers NONMEMBERS PRESENT: Paul Bolin, HRA Assistant Executive Director ACTION ITEMS: 1. Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures as submitted. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of September 3, 2009, Meeting Minutes MOTION by Commissioner Holm to approve the minutes as presented. Seconded by Commissioner Meyer. Chairperson Pro Tem Gabel noted that the first line should read meeting, not "special" meeting. Also on page two, last sentence reads "200 year lease is starting and the HRA is not in the business of operating businesses", change businesses to rail stations. Lastly on page three, last sentence "there is even an agreement to substitute storm water managemenY', is that correct or what does that mean. Paul Bolin, HRA Assistant Executive Director, said it is the ability to change storm water management from a pond to underground storm water management or move it elsewhere on site. Chairperson Pro Tem Gabel said if it reads correct, then that part does not need to be amended. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MINUTES APPROVED AS AMENDED. 3. Approval of Resolution declaring Certain Properties Blighted and Authorizing Demolition of Properties Paul Bolin, HRA Assistant Executive Director, said the HRA currently owns six vacant properties along University Avenue in the area referred to as Gateway Northeast. The buildings are blighted and present a poor image along University Avenue. There have been problems with break-ins, vandalism, copper theft, cost of maintenance, dangerous "booby trapping", and illegal dumping. Mr. Bolin said that the city's Chief Building Official conducted inspections and blight analysis for these buildings. The properties exceed the Statutory requirements for a substandard building. Substandard/blighted properties are when buildings are in need of repairs and code upgrades equal to or greater than 15% of a similar new structure's cost. Mr. Bolin said that costs were determined using R.S Means Cost Data — 2008/2009 Edition and all buildings faz exceed the 15% rule. Five buildings need fire sprinklers, all need new roofs, HVAC, plumbing upgrades, and would require substantial improvements to meet the Energy & Accessibility Codes (the AC costs are not included below). ♦5865 University Ave. (Oriental Hse) — 32% ♦5924 University Ave. (Alano) - 43% •5945 University Ave. (New VOL) - 20% ♦6005 University Ave. (Carquest) - 19% ♦6041 University Ave. (Old VOL) - 19% ♦6071 University Ave. (Sinclair) - 39% Mr. Bolin said that the Resolution allows for the demolition of the properties now, while allowing the properties to be included in a future TIF Redevelopment project. HRA would have three yeaxs from the date of demolition to create a TIF District. If a project is not ready at that time, collection of increment can be deferred for four more yeaxs. Staff recommends adopting the resolution and moving forward with soliciting bids for late fall demolition. Approval of this resolution also requires City Council approval. Chairperson Pro Tem Gabel said that there is a definite risk leaving the buildings there and HRA does not need the liability. Some homeless person could attempt to live in there and create an incredible problem. Commissioner Holm said that HRA didn't have enough control of properties in that section but with these properties in the area, a redevelopment could happen. Chairperson Pro Tem Gabel asked for an explanation of a marquee project. Mr. Bolin said that with the rail station opening in November and a redevelopment of the Cub Foods site propose, there will be interest in our properties along University Avenue. Developers will want to be in Fridley because of these new projects. This will lead to a nice project on University Avenue. MOTION by Commissioner Holm to approve the resolution declaring certain properties blighted and authorizing demolition of properties. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Approval of Home Improvement Demonstration Program Paul Bolin, HRA Assistant Executive Director, said that stafF is proposing creation of a demonstration home improvement program that will encourage reinvestment in SF housing stock, showcase upgrades/improvements to make older homes more livable, promote our loan program, promote remodeling advisor services and put people back into foreclosed homes. Mr. Bolin sa.id that low home values make this an opportune time for a demonstration program. A contractor, realtor, and house will be selected and a budget will be developed. Then an open house will be held before, during and after to show the process. After the project is complete the property would be rnarketed for sale. Mr. Bolin said that staff recommends HRA approve a motion authorizing staff to develop the framework necessary to implement the home improvement demonstration project. Staff will develop specifics of the project and bring a resolution forward at the December meeting for implementation. Commissioner Holm asked for sta.ff to present the scope of the project, dollazs, time frame etc. at the December meeting. Mr. Bolin said that information will be provided. T'here will be an updated list of properties that are available and staff will look at which homes are structurally sound. Commissioner Holm thinks the program is a great idea. Chairperson Pro Tem Gabel thinks this program is why HRA is here. She asked what the problems were with the Coon Rapids program. Mr. Bolin said that the biggest problem with the Coon Rapids program was when they went into the project they didn't spend enough time on the front end of the project, working out all of the mechanisms for making the purchases. When they would find a property to purchase, staff would make an offer contingent of HRA approval and a lot of times the bank would reject their offer. By the time an approval was received to purchase the property, the property was already sold. Some changes have been made to their program and it is set up that staff can get approval from the Board Chair so they don't have to wait until an official meeting to make an offer. Chairperson Pro Tem Gabel said that a lot of details need to be worked out but there are many opportunities out there right now. Mr. Bolin said that this will be a home improvement demonstration program not a foreclosed home removal or remediation program. Part of staff's efforts this winter will be at the legislature to get a scattered site acquisition program running again. Last session this was approved by the House/Senate and then the Governor vetoed the Bill. The scattered site program would be the mechanism to purchase the worst of the worst homes and eventually tear those foreclosed properties down. Chairperson Pro Tem Gabel said that there may be one house empty in a neighborhood that can be fixed up that is bringing down the entire neighborhood. MOTION by Commissioner Holm to approve the Home Improvement Demonstration Program. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 5. Approval of TIF District #20 for Columbia Arena Redevelopment MOTION by Commissioner Holm to remove the approval of TIF District #20 for Columbia Area Redevelopment from the table. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE ITEM REMOVED FROM THE TABLE Paul Bolin, HRA Assistant Executive Director, said that the developer had asked that the HRA postpone taking any action on this item until October l st. Staff has had discussions with the developer which indicate that the new clinic will likely be built on the Unity Hospital Campus. The developer is working with a senior housing group to put a project on the Columbia Arena site. Given the amount of doubt, Staff recommends the HRA table the item indefinitely. MOTION by Commissioner Holm to table the approval of TIF District #20 for Columbia Arena Redevelopment indefinitely. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS: 1. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said in September one loan was closed and year to date a total of 11 loans were closed. 'There was also one remodeling advisor visit in September for a total of 13 year to date. The numbers are identical to where they were a year ago. Mr. Bolin said that there are currently six delinquencies that are three months or older. Of those six loans, three have been discussed before and the properties have been foreclosed on which makes it highly unlikely the funds will be recovered. T`he total outstanding principal of the six loans is $78,000. Chairperson Pro Tem Gabel said that the HRA will more than likely end up writing these loans off. Mr. Bolin said yes. Commissioner Meyer asked if staff knew anything about the circumstances of the foreclosed properties. Mr. Bolin said that in most cases, because of confidentiality, staff does not know about the situation. A lot of the information is confidential and staff would not have access to that information; all records are kept offsite. Commissioner Meyer asked if there was some kind of relief that could be given to the people who are in foreclosure. He asked if staff could work with them in some fashion or another to relieve the distress of the situation. Chairperson Pro Tem Gabel said that it would be helpful if they could hold off paying on the loan to let them get back on their feet, possibly give them some temporary relief. Mr. Bolin said that the biggest difficulty to help people out is that people don't ask for help early enough in the process. The key is for people who are having problems to conta.ct their primary lender early on in the process. Large banks are willing to work with people and the last thing they want to do is take over another home. NONAGENDA UPDATE: North Star Rail Paul Bolin, HRA Assistant Executive Director, said that at the November meeting more detailed information will be available. Tickets can be purchased on the city or North Star website. Free tickets will be given away to ride the train during grand opening weekend. Commissioner Holm said that even those who don't get to ride the train will get a pass to ride the following weekend. ADJOURNMENT: MOTION by Commissioner Holm to Adjourn. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:15 P.M. Respectfully Submitted, , � ��i��� �� Krista. Monsrud, Recording Secretary � , CITY OF FRIDLEY SIGN-IN SHEET HOUSING 8� REDEVELOPMENT AUTHORITY MEETING �%-(-�� Name and Address Agenda Item of Interest