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HRA 09/06/2012 - 31340CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION September 6, 2012 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:00 p.m. ROLL CALL: MEMBERS PRESENT: William Holm Pat Gabel Larry Commers Stephen Eggert John Meyer OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Scott Hickok, Community Development Director William Burns, City Manager Jim Casserly, Development Consultant Darin Nelson, Finance Director/Treasurer Becky Kiernan, Accountant ACTION ITEMS: 1. Approval of Expenditures MOTION by Commissioner Gabel to approve the expenditures as presented. Seconded by Commissioner Meyer. Commissioner Gabel noted that the Sun Focus Newspaper is still used for the city's legal notices and it is not delivered to all residents in Fridley. Paul Bolin, HRA Assistant Executive Director, answered that he was not sure how wide spread the Focus was delivered but it is still distributed in Fridley and is the official city's local newspaper. Commissioner Gabel was concerned if residents do not get a paper how they would know about the public notices. Jim Casserly, Development Consultant, said that they have not looked at that in a long time because the Sun Focus meets the requirements. He will double check on the distribution and requirements and get back to the Authority. Chairperson Commers asked for staff to verify the requirement for publication of notices. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of August 2, 2012 Meeting Minutes Housing and Redevelopment Authority Meeting of September 6, 2012 2 MOTION by Commissioner Holm to approve the minutes as presented. Seconded by Commissioner Eggert. Commissioner Meyer asked for the following correction to be made: page 3, third to the last paragraph, change to "Chairperson Commers noted that Dr. Lemay, owner of Fridley Pet Hospital, did have an interest and asked for an appraisal to be done." Commissioner Holm noted the following corrections: page 2, second paragraph, should read "Mr. Bolin said that boulder Contracting has now submitted..." page 2, fourth paragraph from bottom, "Public Hearing" is spelled incorrectly. .. page 2, third paragraph from the bottom, address should be "381 Ironton Street NE" page 5, last paragraph, should say "Columbia Arena" UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MINUTES APPROVED AS AMENDED 3. Approval of 2012 Tax Levy for Taxes Payable in 2013 Darin Nelson, Finance Director/Treasurer, stated that the MN Statutes authorize HRA's to levy properties within their community to support housing and redevelopment efforts. The Levy is equal to .0185% of taxable market value. The 2013 levy will allow HRA to collect $392,400 which is down from $434,000 in 2012 and $473,000 in 2011, because the market value has decreased and the Market Value Homestead Exclusion was implemented. Mr. Nelson said that the impact on the taxpayer for a$150,000 home will be $23.36; and on a$1 million commercial property will be $185.00. Staff Recommends approval of the resolution consenting to the HRA Tax Levy. This provides the HRA the ability to fund ongoing and future redevelopment efforts and the ability to meet housing needs. The Levy will be certified and delivered to the County by September 17, 2012 and City Council will act on this item on September 10, 2012. MOTION by Commissioner Gabel to approve the 2012 Tax Levy for Taxes Payable in 2013. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Public Hearing and Consideration of Resolution Authorizing Sale of 465 Mississippi Street NE MOTION by Commissioner Holm to open the public hearing. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING OPENED AT 7:15 p.m. Paul Bolin, HRA Assistant Executive Director, stated that Novak Fleck have built and sold two homes and are proposing to purchase the vacant lot at 465 Mississippi Street. This home will be a mirror reverse image of the home on Hugo Street. The proposed home will have a total of three bedrooms and 1 3/4 bath. The upper level will have a total of two bedrooms and a full bathroom. The lower level will have one finished bedroom and a 3/4 finished bathroom. Staff recommends approval of the resolution and contract for redevelopment, authorizing the sale to Novak — Fleck Builders, INC. This puts new investment in the neighborhood and the proposed home design is consistent with HRP Guidelines. Housing and Redevelopment Authority Meeting of September 6, 2012 Commissioner Gabel asked what the sale price is for this home. Mr. Bolin answered about $179,000 MOTION by Commissioner Holm to close the public hearing. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:19 p.m. MOTION by Commissioner Gabel to approve the consideration of a resolution authorizing sale of 465 Mississippi Street NE. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 5. Public Hearing and Consideration of Resolution Authorizing Sale of 5745 3rd Street NE MOTION by Commissioner Eggert to open the public hearing. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING OPENED AT 7:20 Paul Bolin, HRA Assistant Executive Director, stated that Home Detail has submitted a purchase agreement to purchase this lot and they already have a buyer for the home. This home will be 1,200 square feet and have a basement. There will be a total of two bedrooms and two bathrooms. One bath will be finished in the lower level with the mechanical space, and provides room for a future office and family room. The main level will have a kitchen and a large open dining/living space. The second story will have two bedrooms, a full bathroom, laundry and small office space. Staff recommends approval of the resolution and contract for redevelopment, authorizing the sale to Home Detail, Inc. This new home will encourage other builders/homebuyers to look at this neighborhood. The proposed home design is consistent with homes previously built in the Gateway West Neighborhood. Jeff Magdic, Home Detail, has constructed other houses in the neighborhood and this is consistent to the other homes that were built. Everything they build is custom. This home is already sold and the buyers are ready to move in as soon as it is completed. Commissioner Eggert asked when the contractor plans to get in the ground and turn over the home. Mr. Magdic answered that they are ready to get started and move in as soon as possible. Chairperson Commers asked how long this construction would take. Mr. Magdic answered three months or less; hopefully. Commissioner Holm asked for clarification on the plans; this is a two story home and the foundation below is unfinished. Housing and Redevelopment Authority Meeting of September 6, 2012 4 Mr. Magdic answered yes; except for the 3/4 bathroom that will be finished in the basement. It is possible the lower level may be finished depending on the financing. The square footage includes the first and second floor but not the basement. Commissioner Gabel asked what the selling price would be. Mr. Magdic answered $150,000 or so depending on what they decide to build. The home could be closer to $200,000 if they construct a bonus room above the garage. MOTION by Commissioner Holm to close the public hearing. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:29 p.m. MOTION by Commissioner Eggert to approve the consideration of a resolution authorizing sale of 5745 3rd Street NE. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 6. Public Hearing and Consideration of Sale — 6071 University Avenue NE MOTION by Commissioner Gabel to open the public hearing. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING OPENED AT 7:31 p.m. Paul Bolin, HRA Assistant Executive Director, stated that the last three to four months there has been interest from several people regarding this property. Staff received a purchase offer for the former Sinclair Station from the McNutt Companies to build retail space on the site. Scott Hickok has been working with Mr. McNutt and an architect to develop concept plans to obtain funds and create a detailed engineering plan for a pedestrian over pass. The complexity of this project means that staff is not ready to present this project yet. Mr. Bolin reviewed the Proposed Timeline: • Mid September — Grants awarded by Met Council • October / November — Site plan to Planning Commission and City Council • November / December — Development agreement and sale reviewed by HRA Staff recommends a motion to open public hearing, and a second motion to continue the public hearing. Scott Hickok stated that this has become a more complicated project but very exciting. An over pass is a very positive thing to get people to and from the train station. Staff has three grant applications in right now; one is for this project (design money), and if it is successful $100,000 would be received to go towards the design of the overpass. The overall costs for designing an overpass will be $240,000- 260,000. There would be additional design money needed to make this happen. Staff is not saying this is an HRA expense; there are other avenues staff will continue to explore. Mr. Hickok said that discussions with Commissioner Kordiak indicated the Rail Authority may be able to help with funding. There are funds and sources out there to help once the design is complete. If we get Housing and Redevelopment Authority Meeting of September 6, 2012 Met Council funding and secure other funds needed to design the over pass we can make this happen. At a minimum we need to know what the footprint of the elevator core will be as it relates to Mr. McNutt's project. This will let Mr. McNutt know how much he can build there to keep going forward. The Authority will have a lot of questions and staff will pull this together and come back in the ne�t few months with more detail. As this relates to the McNutt property, he needs assurance to move ahead and will build his piece while we move ahead with the elevator core and overpass. Chairperson Commers asked if it were an issue that the overpass would cross a state highway. Mr. Hickok said staff would work with the State on crossing the state highway. In the early rounds they realize we are looking to put a pedestrian overpass across this highway and are enthusiastic about it. As long as they get the clearance they need, they don't seem too concerned. Commissioner Meyer asked about future parking; if there was sufficient room for parking to make this project viable. Mr. Hickok replied that every project has to stand on its own in terms of square footage and relative parking that is required based on the square footage. This also encourages alternate transportation like rail, walking and biking. Parking for the overpass is not the idea here; the parking is for tenants in the building and customers. Commissioner Meyer asked if there was enough space to fulfill the minimum legal parking requirements. Mr. Hickok answered yes; the parking right now is in excess of what is required. William Burns, City Manager, asked how this retail building enhanced or blocked access to the overpass to the south. If he had a condo or apartment south of the overpass; how would he access the overpass? Mr. Hickok replied that the projects would work in concert with one another. There is a sidewalk in front of the area that would take you to the retail site. Staff thinks that a living and retail space would work well together. Commissioner Eggert noted that the design is rather contemporary which maybe too much for this area. This developer does contemporary modern facilities on very small tracks of land. Mr. Hickok answered yes; to combine an element that is fairly tall with one that is short the developer has thought how to make this work well. Although this is a different architecture for Fridley, staff felt this signature project is something HRA was looking for. Commissioner Meyer asked what rationale was used to choose an overpass instead of a tunnel. Mr. Hickok replied that the land area is better for an overpass and an underpass requires run distance and there would be a clearance issue plus it would eliminate some potential for development. An overpass is more compact and would allow room for more development on the corner. MOTION by Commissioner Holm to continue the public hearing to November 1, 2012. Seconded by Commissioner Eggert. Housing and Redevelopment Authority Meeting of September 6, 2012 6 UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY Commissioner Eggert noted that Mr. Bolin said staff is running out of houses to buy; he asked what is happening out there as we need to do more work in this community to clean it up. Mr. Bolin said that staff has purchased some properties for $30,000 -$50,000 and now properties are $68,000 -$75,000. The last few months' prices have crept up and mortgage holders are not dealing right now. In addition the condition of these homes are in very poor shape which makes it expensive to even demolish the home and do soil testing to see if the lot could be sold at a later date. There is also not a lot of inventory out there and the homes that are out there are priced too high for the quality of the home. Commissioner Eggert said it may be worth it to develop more strategic locations. He asked if any homes were against city building code requirements. Mr. Hickok answered that code enforcement staff will contact the bank owned properties that are not mowing or have building issues and the banks have been good to take care of these issues. 7. Appreciation for John Meyer Chairperson Commers thanked Commissioner Meyer for his 28 years of service to the HRA. It has been a privilege to serve on this commission and the Authority appreciates everything Commissioner Meyer has done. The Authority has called on Commissioner Meyer's expertise on engineering and architectural understanding. The success of this commission belongs in great part to Commissioner Meyer. The Authority is fortunate to complete 14-15 projects while he served on the commission and $100M of taxable property was added in the city during that time. Commissioner Meyer should take great pride in the amount of work he has done. Beyond the HRA Commissioner Meyer has contributed more to the community like serving on the school board and participation in community activities. On behalf of the City of Fridley Chairperson Commers presented Commissioner Meyer a Certificate of Appreciation. INFORMATIONAL ITEMS: 1. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, reported that from July 15 — August 15 no loans were closed and there are a total of l year to date. There were two remodeling advisor visits during this timeframe making a total of 18 year to date. Scott Hickok, Community Development Director, said that the Columbia Arena will go before the Council on Monday, September 10, to consider subdividing the area into three lots and a SUP for the newer/older phase of the arena. The plan is to build 116 units and indoor parking. Staff is looking forward to a project happening on that site. Mr. Hickok said that the ne�t phase of the Faulkner development is starting to happen. William Burns, City Manager, said that the ACCAP house TOD is on the Council Agenda for Monday night too, this is for the 13 unit home. ADJOURNMENT: Housing and Redevelopment Authority Meeting of September 6,2012 7 MOTION by Commissioner Gabel to adjourn. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:10 P.M. Respectfully Submitted, / //)-tht//Walli)zkL_- ) Krista Monsrud Recording Secretary CITY OF FRIDLEY SIGN-IN SHEET HOUSING & REDEVELOPMENT AUTHORITY MEETING re &, o/� Name and Address Agenda Item of Interest