Loading...
HRA 06/07/2012 - 31321CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION June 7, 2012 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:04 p.m. ROLL CALL: MEMBERS PRESENT: NONMEMBERS PRESENT: ACTION ITEMS 1. Approval of Expenditures Larry Commers William Holm Pat Gabel Stephen Eggert John Meyer Paul Bolin, HRA Assistant Executive Director Becky Kiernan, Accountant William Burns, City Manager Jim Casserly, Development Consultant MOTION by Commissioner Gabel to approve the expenditures as presented. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of May 3, 2012 Meeting Minutes MOTION by Commissioner Holm to approve the minutes as presented. Seconded by Commissioner Gabel. Commissioner Gabel noted the following corrections: • Page 3, second to last paragraph, last sentence should read; ... buy the parcel it is in our best interest to sell and get the lot developed. • Page 5, fourth to the last paragraph, third sentence should read; ... with the Navy continue. Page 6, fifth to the last paragraph, first sentence should read; Mr. Bolin said that one was done for a recent audit and staff can share that with the Authority. Page 7, second paragraph, first sentence should read; Scott Hickok, Community Development Director, said he has talked with both representatives from ... UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MINUTES APPROVED AS AMENDED City of Fridley Housing and Redevelopment Meeting of June 7, 2012 3. Election of Officers June 2012-June 2013 Paul Bolin, HRA Assistant Executive Director, said that the HRA By-laws require the Commissioners to elect a Chair and Vice-Chair to one-year terms. Staff recommends that the Authority hold an election of a Chair and Vice-Chair. MOTION by Commissioner Holm to nominate Larry Commers as Chair and Pat Gabel as Vice Chair. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY MOTION by Commissioner Holm to close the nominations. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY MOTION by Commissioner Holm to approve the election of Larry Commers as Chair and Pat Gabel as Vice Chair. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY Commissioner Eggert noted that Commissioner Holm's term was up in June. Mr. Bolin said that his term has been e�tended another five years. 4. Approval of Redevelopment Agreement — 551 Hugo Street Paul Bolin, HRA Assistant Executive Director, said that last month the sale of 551 Hugo Street was authorized. Staff is asking the Authority to approve the Redevelopment Agreement that spells out obligations of the builder, acts as purchase agreement, and assures the quality of the home built on this lot. This agreement has been in use for many years and has been reviewed by legal counsel. Staff recommends a motion approving the Contract for Private Redevelopment with Novak-Fleck Builders for 551 Hugo Street. Chairperson Commers noted that the packet did not have some of the attachments; particularly the products that will be used to build the home. Mr. Bolin said that the packet for signature has the house plans and that type of detailed information is attached to it. Novak-Fleck will be using materials such as stone, asphalt shingles, shakes and vinyl siding for e�terior products on the home. Chairperson Commers said that usually Commissioner Meyer reviews some of that to ensure it is compatible to what has been done in the past. Mr. Bolin said that the city building staff will go through the plans as well for the building permits. City of Fridley Housing and Redevelopment Meeting of June 7, 2012 MOTION by Commissioner Holm to approve the redevelopment agreement for 551 Hugo Street. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 5. Public Hearing and consideration of Resolution Authorizing Sale of 561 Hugo Street NE �O�ION b}� �o��issio�e� ��e� to ope� t�e publi� �e���. Se�o�ded b}� �o��issio�e� G�bel. �PON VOIC� VO��a ��� VO��NG ���a C�����1tSON CO���1tS D�C��D ��� �O�ION C���D �N�N��O�S�� �ND ��� P�B�IC ����NG OP�N�D �� '1:19 P.�. Paul Bolin, HRA Assistant Executive Director, said that Boulder Contracting is asking the Authority to sell the parcel for Housing Replacement Program (HRP). The Authority purchased this parcel last August, demolished the home and split the lot. This will be a nice addition to the neighborhood and there has been some reinvestment on this street by other homeowners as well. The home will be a three level split, with an e�terior in a mix of stone, shakes and vinyl siding. The home will have a total of two bedrooms and 1 3/4 bath with a total of 1020 sq. ft. on each floor. The lower level will have room for an additional two bedrooms and a finished 3/4 bath. Staff recommends approval of the resolution and contract for redevelopment, authorizing the sale to Boulder Contracting LLC. This home will offer a new investment in the neighborhood and the proposed home design is consistent with HRP Guidelines. Jason Wiehle, realtor representing Boulder Contracting, said that the plan is to get started right away and they can have it staked ne�t week This home will be built as a spec home but they have had great luck building on infill lots and selling homes before the construction is complete. They are confident to find a buyer and move them in quickly. Commissioner Eggert asked when the construction would be completed. Mr. Wiehle said they estimate 60 days to completion. Commissioner Gabel asked what the sale price would be of this home. Mr. Wiehle answered $179,900. Commissioner Meyer noted that the plans were very detailed and the home should be within the guidelines of the Authority. MOTION by Commissioner Holm to close the public hearing. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:24 P.M. City of Fridley Housing and Redevelopment Meeting of June 7, 2012 MOTION by Commissioner Holm to approve the Resolution Authorizing the sale of 561 Hugo Street. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 6. Public Hearing and Consideration of Resolution Authorizing Sale of 434 Liberty Street NE �O�ION b}� �o��issio�e� �ol� to ope� t�e publi� �e���. Se�o�ded b}� �o��issio�e� G�bel. �PON VOIC� VO��a ��� VO��NG ���a C�����1tSON CO���1tS D�C��D ��� �O�ION C���D �N�N��O�S�� �ND ��� P�B�IC ����NG OP�N�D �� '1:�5 P.�. 4 Paul Bolin, HRA Assistant Executive Director, said that this site is a few blocks south of the other properties that were discussed earlier tonight. This property is located off of a dead end street off of East River Road; it is a nice quiet street. Novak-Fleck has a buyer under a contingent purchase agreement to build a home on this property. This is a custom home and has over 1,400 sq. ft. finished on the main level. The main level will include three bedrooms, two bath with room for two more bedrooms and an additional bathroom on the lower level. Staff recommends approval of the resolution and contract for redevelopment, authorizing the sale to Novak-Fleck builders for a price not less than $30,000. This is a new investment in the neighborhood and the proposed home design exceeds the Housing Replacement Program Guidelines. The builder has experience with infill lots and there is a buyer for this home with a contingent purchase agreement. Dale Anderson, Novak-Fleck Builders, noted that there is a concern making sure there are no appraisal issues. This home will be around $230,000 and they need to make sure the house will appraise correctly or they may have to downsize the home a bit. Chairperson Commers asked if there was a down payment received. Mr. Anderson answered yes, that is correct. Commissioner Holm asked how soon construction could begin. Mr. Anderson answered right away; the home will take two to three months to complete. Commissioner Holm commented that he was impressed with the lot, it is a nice lot. William Burns, City Manager, asked why three different materials were used on one house and why not just use one type of material on one part of the house. Mr. Anderson said that part of the reason is the cost factor, but home designs are created in many different ways and styles vary a lot. The buyer picked this particular look but they have other looks that they are experimenting with as well. City of Fridley Housing and Redevelopment Meeting of June 7, 2012 MOTION by Commissioner Gabel to close the public hearing. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:32 P.M. MOTION by Commissioner Gabel to approve the Resolution Authorizing the sale of 434 Liberty Street. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY Mr. Bolin said that they are starting to see homes sell and the private market is picking up. He had talked to a realtor today and an investor told him to buy four homes and he couldn't find any to buy. This supply and demand will generate more interest in the lots the Authority has to sell. Chairperson Commers suggested putting the lots on the city channel to promote and create some interest. He asked how many lots the Authority has available for sale. Mr. Bolin answered 14. Commissioner Eggert asked if many permits for home remodeling were being issued other than roof replacements. Dr. Burns said that he just received the building permit report and would forward that to the Authority. Overall construction is below where the city was last year at this time. Right now the city is several hundred thousand dollars behind last year but big projects are coming up in the near future. Ne�t year, the large Unity Hospital project is coming which is a 75,000 sq. ft. facility. The Cummings project is close to conclusion as well as the Sandy Site. The Sam's Club project for $6.OM was cut in half but is still a sizeable project underway right now. They are putting in a gas station. Chairperson Commers asked how the Cub Foods project was coming along. Dr. Burns said that project is kind of dormant right now. Some soil borings were taken in the liquor store but it is unclear whether financing for the project has been completed. INFORMATIONAL ITEMS 1. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said that one RLF loan and two other loans closed last month which bring the year to date total to four. There were three remodeling advisor visits which bring the total to nine year to date. Commissioner Gabel asked for an aging report. Mr. Bolin said he would distribute that report to the Authority. He noted that the ne�t meeting is scheduled for July 19 at 7:00 p.m. City of Fridley Housing and Redevelopment Meeting of June 7,2012 6 ADJOURNMENT MOTION by Commissioner Eggert to adjourn. Seconded by Commissioner Gabel. UPON VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:50 P.M. Respectfully Submitted, i6.4a-t3c on64-taP. Krista Monsrud Recording Secretary CITY OF FRIDLEY SIGN-IN SHEET HOUSING & REDEVELOPMENT AUTHORITY MEETING CT() e- '7 aDla Name and Address Agenda Item of Interest