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01/17/1995 JOINT - 4877JOINT CITY COUNCIL WORK SESSION AND HOUSING & REDEVEL�PMENT AUTHORITY MEETING MONDAY, JULY 17, 1995 �, t �� ;�, � 6:30 P.M. � �� ,: �. � ; � � �� , �� OFFICIAL COPY CITY OF FRlDLEY AGENDA JO1NT CITY COUNCIL WORK SESSION AND HOUSING & REDEVELOPMENT AUTHORITY MEETING MONDAY, JULY 17, 1995 6:30 P.M. , - -------------------------------- Location: Meeting Room I(Lower Level) CALL TO ORDER ROLL CALL 1. Presentation by Potential Developers A. United Properties (6:45 pm - 7:25 pm) B. MEPC (7:30 pm - 8: i 0 pm) C. Gaibreath (8:15 pm - 8:55 pm) B R E A K 1 - 1G A B C 2. Evaluation of Devefopers and Seiection of Successfui Company (9:00 pm - 9:45 pm) 2- 26 3. Consideration of Density and Street Location Issues and Impact on Cost of Southwest Quadrant (9:45 pm - 10:15 pm) 4. Consider Acquisition of 380 - 57th Place for Transitional Housing Senrices, and Consider Management Agreement with ACCAP to Manage and Operate Transitional Housing Services (10:15 pm - 10:45 pm) CONSENT ITEMS FOR HRA: 1. Approval of Minutes: June 8, 1995 2. Authorize Acquisition of 5924 - 2nd St�eet N.E. 3. Establish public hearing for disposition of Lot 4, Block 1, Scherer Addition 4. Consider amendment to contract with Whitney Homes 3-3S 4-4P 2-28 3-3E 4-4D 5. Service cont�act with ACCAP for administration of HOME rehabilitation program 5- 5N 6. Monthly housing report 7. Revenue and Expenses ADJOURNMENT . .� 7-7D k ��2 / � CtTY OF FRIDLEY TO: FROM: DATE: MEMORANDUM Municipal Center sas � university Avenue N.E. Office of the City Manager Fridley, MN 55432 Wiliiam W. Burns (612) 57i-3450 The Honorable Mayor and City Council Fridley Housing and Redevelopment Authority Members William W. Burns, City Manager July 13, 1995 5UBJECT: Joint Meeting - Monday, July 17, 1995 MEETING SCHEDULE There is a CounciUHRA meeting scheduled for Monday, July 17, 1995, at 6:30 p.m., in the meeting rooms on the lower level of the Murucipal Center. As you can tell from the atta.ched agenda, we will have a busy evening. I am hoping that we can conclude the meeting by 11:00 p.m. While I realize that you have very busy schedules, if it is possible for you to be at the meeting by 6:30 p.m., it will help us to stay on schedule. ISSUES TO BE RES LVED There are several main issues to be resolved at the meeting on Monday night. One of the most important is the choice of developer for the Lake Pointe site. We also need to resolve the following Southwest Quadrant issues so that we can proceed with the redevelopment of this site: 1. We need to discuss the density issue. In addressing the density issue, we aze faced with one of three choices: [� I: C. Spend an additional $1 million to build the 48 owner-occupied condominiums that were originally planned. Substitute about 26 attached townhomes for the 48 condominiums. Substitute an 80 unit market rate senior high rise for the 48 condominiums. 1 0 Joint Meeting July 13, i 995 Page Two 2. We need to discuss access issues for the Southwest Quadrant. A. Configuration of the main access road. B. Whether we comply with the County's requirement for construction of additional lanes on Mississippi Street. There are other HRA items that should be addressed separately by the HRA, including consideration of ownership of the fourplex located at 57th Street . MATERIALS Attached are materials related to the Lake Point development project, including: 1. Copy of the Lake Pointe development proposals submitted by the three developers. 2. Copy of staffs evaluation matrix for the proposals. 3. Copy of a letter sent to the three potential developers. 4. I have also prepared an evaluation matrix ihat you may use when evaluating the three proposals. Please note that we will not be going through a formal scoring process. If you have any questions or would like additional materials, please contact either Barbara Dacy (572-3590) or myself (572-3500). I look forward to seeing all of you on Monday evening. Thank you for your cooperation. WWB:rsc 1A � � r ;� _.. . . .:�;�.;,.� e,r . :��i ' 1JT =ri . , f=RIDLf:Y Ml)NICIPAt_C[:f�11`ER • 64i1 UNIVERSITY AVG. N.4:. F�RIDLL'Y. u1N i5=1?' •(61?1 571-34i0 • FAX (6(?1 571-12K7 June 29, 1995 Mr. David M. Jellison . MEPC American Properties Inc. 1550 Utica Avenue South Suite 120 Minneapolis, MN 55416 Deax Dave: Thank you for your interest in our Lake Pointe site. As I indicated to you on the telephone, we have decided to ask repre.sentatives of your company and the other companies that have submitted Lake Pointe development proposals to make presentations before a combined meeting of the Fridley City Council and the Fridley Housing and Redeve(opment Authoriry (HRA) on July 17, 1995, at the Fridley Municipal Center. The meeting will begin at 6:30 p.m. in the meeting rooms located on the lower level of the Municipal Center. If you are interested in participating, you should briefly describe your company and the resources it is willing to apply toward the development of the Lake Pointe site. As part of this, you should describe the principals who would be involved in marketing and developing the site and any expectations you would have of the City and the HRA. In general, however, you are free to do what you think is necessary to make the most convincing case for choosing your company. In order to facilitate the evaluation process, staff witl be providing membecs of the City Council and the HRA with evaluation criteria. These criteria are iikely to include the following items: l. Your company's ability to finance projects. 2. Your approach to marketing and pianning. 1B - Mr_ l�avid M. .Ic(lison .f unc 29, I 995 i'age 2 3. 4_ 5. 6. 7. 8. 9. 10. j Your access to potential tenants and users. Consistency of your development goals with the objectit�es of the City. Your marketing strength. Your deve(opment experience. Your commitment to the north metropolitan area. Your anticipated time frame for marketing and development. The extent to which you require the fnancial participation of the City in the marketing process. The extent to which your presentation falls within our tune limits. In the interest of fairness, Barbara Dacy and I have randomty seiected times for presentations to be made by the representatives of the three companies_ They are as follows: 6:45 - 7:25 p.m. 7:30 - 5:10 p.m. 8:15 - 8:55 p_m. United Properties MEPC The Galbreath Company Since we have a very busy schedule for that evening, we would like to ask that you keep your presentation to tweniy (20) minutes in length. We would also like to allo�v another twenty (20) minutes for questions and answers. While it is not real hospitable to ask you to leave after your presentation, we believe that this process wiit pro6abty work better that way. rinally, we will be making copies of your proposals foc each of the members of the City Council and the HRA. if you have other materials that you would like to forward to them prior to the meeting, please get them to us by noon on July 12, 1995. 1C �Y • ..e . . _ _ . Mr. David M. Jel(ison .Iune 29, 1995 Page 3 Thank you again for your interest in our project. No matter which company we ultimately select, I believe that we are very fortunate in having high quality firms and individuals as participants in our process. � Sincerely, r� - � William W. Burns City Manager WWB:rsc c: Ms. Leslie H. Jowett, RPA 1D - � CI T Y OF �� 0 5 1995 ST. LO�.IIS P.�4RK June 29, 1995 Mr. William Burns City Manager City of Fridley 6431 University Ave. N.E. Fridley, MN 55432-4383 Dear Bill: Per our recent conversation, you asked me about the experience the City of St. Louis Park has had in dealing with MEPC as a developer. MEPC is currently the largest taxpayer in St., Louis Park and has developed and operated the Minneapolis West Business Park with a varie�� of office, industrial and retail uses. Please understand that any comments I make are not to be construed as an endorsement of MEPC for development projects under consideration in Fridley but merely represent the experience that I have had either directly or indirectly in dealings in St. Louis Park. I have found MEPC to be an outstanding property owner and developer in all respects. They have developed only the highest quality development and have then maintained their property in an �;cemplary condi�ian. �'heir busin�ss �?eal+_nas l:z�e �bP$n straiDht fon��ard and honest and the;� have been very cooperative in complying with all City requirements. They often seem every bit as much interested in seeing sunounding property develop appropriately as does the City. MEPC has been a corporate contributor to the community with their time, talent and treasury. I believe that St. Louis Park has always felt comfortable that any project they develop wili be successful. I hope my input has been helpful. Sincerely, �%2' _.� � Charle�W. e ec _ Y City Manager 5005 Minnetonka Boulevard St. Louis Park, Minnesota 55416-2290 Phone:612-924-250 612-924-2663 Priahd on �yer . � ,� m � O N � �� Z : Q �' ..� � � � . .� O � v'� T �+ � � A �� a°�i-�3 �oa, °'o`b�° � 0 O �;� N vi O '� ,� O � � t]. w � +-. y,.� 3 N .� � ^� c� p O � v�-� � .v Cj � Q, o � �� aa�i,� i � e0 C O� cUC N O "� .t� � � y �, �, „ � . c�c N � � N �v� a� V c° �, O V p� Q" �� E; x�°'��° .� O � � cd � V � � � � � � 3 c� °' a `+ �v.SoH...� � c��xw �_� ;� 0.5 o E a U�j cd � O � •� •..`n., � � �p � �... � .� .S > � � � � O � U `�'' O .� � Cy � � � cd � �. V Cl. .., V �. •�U�Eb3° ��, .� w;�;� � ci,�j � E ��o�.�� o� a`'U�?•°.�3 �� `� ,� .a cv �n ° cd E� a� �� V o� °a�ipc�'i°.�� 3-0 w° � C7 � � `�' � v� � a� ap 0 0? c°� i� �� ._-� � � � � F-' cd c� .�Ga� �, .., cv 'v� � a� a.> > c� ; .. '-� Cs. O'C �i V t.�• N� .�^'D cn O �L: c�"d � vi�.� ,L�"� � � � � 2� N ��'�V�"� � N �. � �.. 3° � .n r x- � � � = �� ti � .-r"- cC N • � � ,�� 3 G'fl ' ��3�0� E �,��, . ; 3 .o � ;� ° ,� � 'd °°-c -v a� � . �� `°�p�,�o � a� � 3: V v.� E a�i��"'� > .� �3.0��3� o`'v,� U � �M� 'p ... Q ' O A � cti .� v� �n a� '�-' N ..., ��.�� ° � � � � a � cd '7� �� ca � v .. a� � � C �b� .� �.o�u� :� o �� w � j � N �..'-'.T. � � 'b�,., � U � .-. cC � +�-� O � -� � � °c�. � U � O O CL �.�., � �,� � 0 cd KO u�� , N 0�'�� O ._., -� °�'� o.o °�'= � � 3 c Photo by Peter Kaflca 1F Q W � m J � � 3' � O _ _�- Minnuota Real EslateJournal P�e 9 ight a 96,000 square foot �roperiy in Brooklyn Park or $26.04 per square foot. 7316 Aspen Lane, is 87 o four tenants. With this ndustrial now owns more square feet of industrial vin Cities market. chase is a 75,000 square rial property in Madison �or $1,995,000, or $26.60 That building is 100 per- e tenant. isactions bring the REIT's �roperties totaling 21 mil- n 13 states. DPMENT • is in la.nd �theUofM • The Minneapolis Com- �ment Agency (MCDA) i dispute between the Uni- �esota and St.Paul-based � who gets a 30-acre tract South East Minneapolis ) area. of the MCDA says the help the two parties come before a scheduled court tace July 19, 20 and 21. e Minneapolis �ty Coun- M's proposal to develop feet of office/warehouse iys. The site is located in ner of the 300-acre SEMI, �enue and 17th Avenue. ear, CSM has had a pur- t with the owner of the �rthwestern Railroad_ J of M has decided to use inent domain to take the -eports. The University � the site to either develop housing, athletic fields or im generating power plant s alongside the Mississip- says. , vice president of CSM, ;r has been talking with a ial users for the industrial :clined to say who ihey the land value is. has been working with tax increment financing i. The site will need soil otlution remediation due � railyard. Most of the pol- sel fuel, Carland reports. , � 0 � � c ev n � � 1 QO°� so% so�� 40% �o� 0% Occupancy and Average Rate Fourth QuarOer by Region Tw 00� 14rwr A!'ad NN C�+iMr MA JrM� L�A 8iir� Region ■ Oocupa�cy � Average Rate Galbreath from page 1 had enough product to last 10 years, but Hoeg got me to come up and the market just blew me away," says Rick Stone, who supervises the western half of Galbreath's o�ces out of Denver. Stone says the firm will consider specu- lative industrial development and office deveiopment anchored by significant preleasing. Galbreath had spent the last several months looking at other ways of enter- ing the market, including purchasing office properties with turnaround poten- tial. Sources say a Gatbreath partnership put in ihe second highest bid on Mid- west Plaza in downtown Minneapolis, and was close to purchasing 605 Water- ford in Plymouth. Purchasing a building would provide Galbreath with a quick way into the fee management business, where much of the firm's national growth has been in recent years. Galbreath, which manages close to 90 million square feet nationally, would like to have a Twin Cities portfolio of up to 5 million square feet in the next three years, Stone says_ He says he emisions the Minnetonka o�ce eventually employing up to 10 professionals. For now, however, the finn's duties will be split between Hceg, who will supervise development and management for Gal- breath, and Scholz, who will head up the company's corporate oonsulting business. "The market, from a developer's stand- point, has had a kind of void since Tram- mell Crow left," says Mark Brill of Brent- wood Cammercial, "and they are formida- b!e builders who do a nice project. 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F �.t� i+n �,��,cTl ,,,� S �e ic � � f�.�-'��.��<y �� ' �" � ir .'� �� t qyy�i� � yer ty � t' - �' f �v �, ie � ". ,'� . _ .....,r ,.. ....... . .. . ar �. t-. �:,� :-h :.1 __ . _ .., . , `�'��,;�i-.�- .,�,_?. _ �. i.. . . _.. .�. .. �,:.�Y.`' s � ?<.. �' i�±,.._ _ t.�a ,yY,.. . .4. �.., i i - .. ,I. ,�; �aJi �,�, �ii �: ��i� �e_�1'�,�; —.��!/r.i� --�� o��" � � � � • � June 21, 1995 Mr. William W. Burns City Manager City of Fridley 6431 University Avenue NE ` Fridley, MN 55432 Subject: Lake Pointe Fridley, Minnesota Dear Bill: On behalf of United Properties, I want to thank you for giving us the opportunity this week to be considered for the development of Lake Pointe. We understand the City's goals for Lake Pointe to be as follows: l. Sell land for appropriate development, consistent with an approved Master Development Plan, custom designed for this major entrance to the City of Fridley. 2. Select an experienced developer who will make Lake Pointe its highest priority. We believe that United Properties is ideally suited for this project for the following reasons: • We are a local real esta.te company. Our development and marketing focus is in the Twin Cities. • Established in 1916, United Properties is also one of the largest full-service real estate companies in the Twin Cities. We have over 220 employees, and therefore, have the necessary resources to successfully develop Lake Pointe. • United Properties is an experienced developer with a proven track record, having developed over 3 million square feet of office and industrial space locally. We are also very experienced business park developers: Mendota Heights Business Park - Mendota Heights Parkers Lake Corporate Center - Plymouth Centennial Lakes - Edina Minnetonka Corporate Center - Minnetonka Burnhaven - Burnsville Lake Elmo Business Park - Lake Elmo Southbank - Phoenix, AZ 210 acres 55 acres 100 acres 100 acres I,2tf0 acres 125 acres 300 acres 3500 West 80th Street Minneapolis, Minnesota 55431 612 831-1000 Fax: 612 893-8804 � . June 21, 1995 Mr. William W. Burns City of Fridley Page 2 • United Properties is one of the leading Build-To-Suit developers in the Twin Cities. Build-To-Suit projects could be an important element of the overall Lake Pointe developmen� • United Properties is a very successful land marketing company. We will expose Lake Pointe for sale to user companies, brokers, and other developers. • United Properties has extensive experience working on behalf of third-party land owners, such as Prudential and Minnesota Mutual Life. We understa.nd results-based performance. • United Properties is also a real esta.te marketing company with 301icensed leasing brokers, 14 of which specialize in office space leasing. We will assign two of our brokers, with primary mazketing responsibilities, to Lake Pointe. In addition, Lake Pointe will be exposed to the entire United Properties brokerage staff. All United Properties bmkers cooperate with outside brokers. This gives the City a broad network of coverage in the market. • Our Corporate Real Estate Services group has established relationships with major Minnesota companies, providing a variety of rea1 estate services. Many of those companies are located in Fridley and surrounding north-suburban communities. We expect that some of the development will involve this select group of companies. Success at Lake Pointe will largely require a strong, coordinated marketing effort to execute a Master Development Plan. We propose the following plan, as a basis for an eventual Development Agreement with Fridley. A. Development 1. Planning - we will hire Robert L. Boland, Inc., St. Louis, Missouri, to prepare the Master Development Plan for Lake Pointe. United Properties will pay this cos� Overall development of I.ake Pointe could total between St�,000 SF to over 1,000,000 SF of eventual construction. 2. Col(ateral Materials - United Properties will develop marketing tools for development projects and potential land sales. United Properties will pay the cost of these related to actual development projects that it initiates. 1fie City will reimburse us for costs specif'ically related to land mazketing, subject to a pre-approved budget and submission of actual invoices. � w. June 21, 1995 Mr. William W. Burns City of Fridley Page 3 �` f�� 3. Speculative Office Project - we will design an office building for lease, in �` accordance with the approved Master Development Plan. United Pro rties witt Pe ,� purchase the site for this project and commence construction subject to achieving 70% pre-leasing, andlor as required by fnancing terms. Two United Properties leasing brokers will be assigned exclusive maxketing responsibility for this project, exposing the project to the entire market, including prospective tenants and to the Twin Cities brokerage community. Flexibility is the key. Lake Pointe offers the chance to develop a variety of building sizes, which provides the market the fle�cibility of choice, and thereby quickens the development of Lake Pointe based on actual pre-leasing results. 4. Build-To-Suit Projects - United Properties will market Lake Pointe to user companies, on a sale or lease basis. We will purchase sites upon entering Build-To- Suit contracts for specific corporate facility projects. B. Land Marketing 1. United Properties will market sites at Lake Pointe for sale to corporate users, brokers � and developers. We will manage the sale process on behalf of the City. Any proposed deveiopment would be coordinated with the approved Master Development �I Plan. Land prices will be pre-determined with the City for each site and will be reviewed annually thereafter. 2. United Properties will be compensated a commission for all land sales at Lake Pointe, including projects developed by United Properties. An 8% sales commission �vill be paid to United Properties. United Properties will compensate any participating outside broker involved in individual transactions. C. Land Mana�ement Services 1. United Properties can also provide the City additional real esta.te services, such as accounting, street and utility design and construction, market analysis/custom reports, real estate ta�c analysis, and soil correction coordination. Any such services wiil be paid by the City on an hourly basis. D. Exclusive Ri�ht to Develon/Sell 1. The development agreement will be for a three year minimum term, extended automatically in one year increments. , {. June 21, 1995 Mr. William W. Burns City of Fridley Page 4 If this outline of terms is acceptable, we will work with the City to prepare a mutually acceptable Development Agreement� We believe that Lake Pointe is an outstanding development opportunity for the "front door" of the City of Fridley. Because af its proven track record with similar projects, we believe that United Properties is best suited to market Lake Pointe for development and act as the project developer on behalf of the City of Fridley. With the right development plan, and aggressive marketing strategies, we are confident that United Properties can successfully develop Lake Pointe. Thank you for considering United Properties for this exciting development marketing opportunity. Very truly yours, � Dale J. Glowa Senior Vice President DJG/dgw cc: Brian Carey Jeff Lafavre �:�e�nuy�.a� t. PROPOSAL To The City of Fridley Developer of Record Proposal For Lake Pointe Corporate Office Park :_ MEPC AMERICAN PROPERTIES INC. June 9, 1995 MEPC AMERICAN PROPERTIES INC. MEPC American Properties Inc. is a wholly-owned subsidiary of London-based MEPC plc, one of the world's largest internationa! prope►ty companies with more than $6 biltion in assets. During its 45 years vf business, MEPC plc has acquired or developed more than 900 properties throughout the United Kingdom, Eumpe, Australia and the United States. MPEC American was founded in 1974 and since that time has developed or acquired commercial properties throughout the United States. Current projects include office buildings, shopping centers and industrial buildings in Atlanta, Chicago, Dallas, Kansas City, Las Vegas, Washington D.C. and Minneapolis and Rochester, Minnesota. Like the parent company, MEPC American maintains ownership and management of each of its projects. Parties: Project: Location: Present Owner: Developer: Acreage: Use: Commencement & Term: June 9, 1995 Proposal to the City of Fridley Developer of Record Proposal For Lake Pointe Corporate Office Park City of Fridley/MEPC American Properties Inc. Lake Pointe Corporate Office Park I-694 and Central Avenue Fridley, Minnesota City of Fridley MEPC American Properties Inc. Approximately 33 acres Office park and other related services MEPC proposes to be designated the Developer of Record commencing September 1, 1995 (or sooner) and to continue this designation through December 31, 1997. Renewal Term: We would also like to request upon mutual consent of both parties this term cou(d be renewed for an additional three (3 ) year period. Developers Res�onsibilities: MEPC American Properties shall be responsible for all costs associated with the marketing and development of Lake Pointe Corporate Off ce Park. We would propose a marketing plan as follows: A- Establish office market data on this location and determine the corporate users and amenities for space at Lake Pointe Corporate Office Park. f3 - Master plan Lake Pointe Corporate OfGce Park to maximize the site and i��eet the rcyuiremc��ts of tile corporate users (i►1 building size, yuality and floor plate) for this location. C- Develop marketing materials such as fliers and brochures to assist in marketing efforts for mailings, advertising, proposals to corporate users, broker parties, press re(eases, etc. Sclleduled ti►ning of these marketing events and materials would be provided to the City. I) - The official announcement to the public of Lake Pointe Corporate Office Park would be achieved by: I3roker special event on site News releases Corporate user presentations Prospect Mailings Advertising throughout the Twin Cities Owner's Responsibilities: The City of Fridley shall be responsible for the following: Amending Cities original Indirect Source Permit and associated Environmental Impact Statement Furnish unencumbered land and or subsidize ramps due to final density requirements. Provide any necessary infrastructure changes due to final site plan. Resolution HOUSING & RCDEVCLOPMCNTAUTHORITY Resolution Comnzissioner moved its adoption. AND THE CITY OF FRIDLEY FRIDLEY, MINNESOTA 1995 introduced Ihe following resolution and RESOL UTION CONDITIONALL Y DESIGNA TING MEPC AMERICAN PROPERTIES INC. AS DEVELOPER OF THE AREA AT THE INTERSECTION ON THE NOR TH SIDE OF INTERSTA TE 694 AND WEST SIDE OF HIGHWA Y 65 KNOWNAS LAKE POINTE CORPORATE OFFICE PARK. WHEREAS, the Fridley Housing & Redevelopment Authority (hereinafter "HRA") and the City Council for the City of Fridley (hereinafter "City") have approved this area for an Office/Commercial Development Project; WHEREAS, planning for development in the I-6941Highway 65 area requires cooperation with private developer(s) interested in making investments in the area; WHEREAS, prior to contractually committing to developing the area, private developers require time to plan and prepare for such development and in doing so make notable financial committnents; WHEREAS, MEPC American Properties Inc. (hereinafter "MEPC") a worldwide development company with its American headquarters in Dallas, Texas and a regional office in Minneapolis, Minnesota has shown interest in developing that portion of the I-695 & Highway 65 described above and; WHEREAS, MCPC has requested from the HRA and the City a twenty-eight (28) month time period during which it may have exc(usive status as potential developer of the area common(y known as Lake Point Corporate Office Park; and WNEREAS, the HRA and the City of Fridley have undertaken an active role to encourage development of the Lake Point Corporate Office Park area through planning, purchase of rea( property, relocation, soil correction, and environmental clean-up ftnanced by tax increment and other sources. NOW, THEREFORE, E3E 1'C IZESOLVED, by the IiRA and the City as follows: 1. MEPC is designated exclusive developer of the area north of I-(i94 and west of Highway 65 depicted on the attached Exhibit A, for a term commencing September l, 1995 through December 31, 1997. 2. MEPC will undertake planning, site design, marketing, and development efforts; all of MEPC's plans and activities will be coordinated with the HRA and the City including but not lirnited to all building, zoning and subdivision requirements; and MEPC understands that any actual development must be preceded by a negotiated development agreement between the HRA and the developer which development agreement shall contain terms satisfactory to the HRA. 3. In accordance with the objectives and authority of the Lake Pointe Corporate Office Park plan, and Minnesota law, the HRA and the City have available various powers and financial assistance tools to facititate the deve(opment of the area. If the HRA and the City are satisfied as to the site design, planning, marketing, financing, and development efforts of MEPC, the HRA and the City are prepared to reasonably utilize its powers and financial assistance tools to facilitate the establishment of a reasonable Iand price or subsidize ramps due to final density requirements, and provide an environmental impact statement, indirect source permit and any necessary infrastructure changes due to a final site plan. 4. The conditional designation is not contractually binding on the HRA and the City, but is a statement of HRA and the City's willingness to work in good faith solely with MEPC until December 31, 1997 unless MEPC fails to diligently pursue redevelopment efforts. The following Commissioners voted in Favor: The following Commissioners voted Against: Chair Attest: Acting Executive Director ! . ,, a dJN 0 9 199� T�c Galbi'catl� CornPar�y 1Z800 Whitewater Drive, Suite ll0, Minnetonka, Minnesota 55343 �� 612-931-2222 Fna: 61Z-931-0996 June 8, 1995 Mr. William W. Burns City Manager City of Fridley . Municipal Center � 6431 University Ave N.E. Fridley, MN 55432 Dear Bill: Please find enclosed the expanded introduction to the Phase I piece of our outline of development services for The City of Fridley. Thanks for opening your calendar to visit with Mike, Rick and me. We continue to be excited about the possibility of working with you to catalyze the success of Lake Pointe. Sincerely, � William K. Hoeg Regional Senior Vice President enclosure: Expanded Introduction to Phase I of June 3, 1995 outline ulp\Burns.COF A FULL SERVICE REAL ESTATE COMPANY ATIANTA CHICAGO CINCINIVAT[ CLEVEIAND COLUMBUS DENVER FT. IAUDERDALE NEW JERSEY NEW YORK OAKLAND ORLANDO PHICADELPHIA PITISBURGH SACRAMENTO SAN FRANCISCO SAN JOSE STAMFORD WASH[NGTON, D.C. LONDO\ MEXICO QTY e. Process and Reporting Phase I: * We will implement a formal and systematic marketing program to access tenants for Lake Pointe in the quickest manner possible. Our marketing will include direct contact with: *Decision Makers within Metro Area Businesses, including the 31 Fortune S00 Companies Based Locally *Real Estate Brokers *Economic Development Authorities *Other Offices of The Galbreath Company *Real Esta.te Lenders and Investors *Real Estate Developers * We will provide monthly written reports of our markering and sales calls and the status update of deals in progress. * We will underwrite and execute the.first project at Lake Pointe with attention being paid to the long term development issues of the Pazk. Phase II: * In concert with the final commitment for the first project at Lake Pointe we hope to earn the right to become the developer of the Lake Pointe through either the execution of a Development Contract or through an extension and expansion of scope of our Phase I Development Services Contract. * Phase II would include: *An upda.te of the City's goals and objectives for Lake Pointe. *Land pricing *Tax impacts *Timing *Funding programs, impacts *Staffing *Other 3 �U�1 p � 1995 Tizc Galbicatl� CornPar�y 12800 Whitewater Drive, Suite 170, Minneronka, Minnesota 55343 re� 612-931-Z222 F,ax 612-931-0996 June 3, 1995 Mr. William W. Burns City Manager City of Fridley Municipal Center 6431 University Ave N.E. Fridley, MN 55432 Dear Bill: We consider it a privilege to have this opportunity to propose our ca.pabilities for representing The City of Fridley in developing Lake Pointe. The goal of developing Lake Pointe in a re-emerging market is a responsibility for which we are confident that we will be successful. Atta.ched are highlights of our proposal summarized in bullet-point format. In addition, I have emphasized some of the local accomplishments of Mike Denny and me. Two key attributes that may not be readily detected in our proposal axe our commitment to and enthusiasm for this opportunity - especially in light of this being The Galbreath Company`s first major visible project in Minnesota.. The Galbreath Company brings a tremendous array of talent and resources to this assignment, We see our relationship with The City of Fridley as that of a business partner. We want to ma.�cimize the land's tax value by successfully executing the development potential while minimizing your risk for resource consumption, both in terms of dollars and people. Bill we appreciate the chance to work with you and are anxious to start work on Lake Pointe immediately. Piease feel free to call me directly at 931-0688. Sincerely, Regional Senio� Vice President enclosure: Bullet Point Summary of our proposal u1p�Burns2.COF A PULL SERVICE REAL ESTATE COMPANY ATLANTA CHICAGO CINCINNATI CLEVEIAND COLUMBUS DENVER FT. LAUDERDALE IVEW JERSEY NE�'�' YORK OAKLAND ORLANDO PHIIADELPHIA PITTSBURGH SACRAMENTO SAN FRANCLSCO SAN JOSE STAMFORD WASHINGTON. D.0 LONDON MEXICO CITY T�ic Galbi'catl� GornPatZy Lake Pointe City of Fridley The Galbreath Company The Best Choice I. Goals and Objectives for Lake Pointe: Secure a commitment with a credit worthy user to construct a three story or larger Class A office building as quickly as possible, while setting the going forwazd framework for maximizing density and maintaining the quality of a master planned business campus. II. Why The Galbreath Company? a. The Galbreath Company is one of the largest rea.l esta.te companies in the world. * Our Company was founded upon providing real estate services with integrity. * We provide access to national and international deal flow * The local operations are run by principals who have a primary stake in the success of the local market. * The Galbreath Company is the only full service real estate company in the Twin Ciries with an intemational scope. * We have an internal merchant banking function which enables Galbreath to successfully underwrite a wider band of credit amongst tenants resulring in more deals being successfully being completed. * We have comprehensive development talent and resources within the Company, including: finance, construcrion, master planning, architecture, legal, property management, leasing, and asset management. b. Lake Pointe will be The Galbreath Company's first major project in Minnesota.. * Importance of positive first impressions for Galbreath with the local community. * No conflict of interest. We will have a dedicated focus to Lake Pointe's success. * We are committed to Lake Pointe throughout the organiza.tion as evidenced by having had the Vice Chairman come to Fridley three times within the past 60 days to review Lake Pointe. c. We are proposing a"partnering" type structure that pro.vides for The City of Fridley and Galbreath to have parallel objectives for Lake Pointe. * An "owner's" perspective when dealing with prospects. * A long term perspective versus a"brokerage" menta.lity. * A developer's savvy when it comes to structuring the first deal to set the stage for the long term snccess of the Park. * Minimizing risk for the City by having a full disciosure relationship with The Galbreath Company with mutualiy beneficial goals and objectives. * A compensation format which is consistent with short and long term focus for Lake Pointe d. The enthusiasm, local experience and commitment of Will Hoeg and Mike Denny to Lake Pointe. * Lake Pointe has huge ramifications for Will Hoeg and Mike Denny because the first impressions it will create for Galbreath within the local real estate, finance, and general business community. Additionally, a project such as Lake Pointe, will be tremendously positive for Hoeg's and Denny's image within Galbreath. * The deal flow that we have already generated for Lake Pointe on an informal basis indicates the potential success of an exclusive relarionship between the parties. * Our track record of developing master planned business parks in the Twin Cities is excellent, we believe. Over the last ten years we have been involved with over six million square feet of development, including Carlson Center, Minnetonka, Corporate Center, The Colonnade/Golden Hills Redevelopment, Eagan Woods, Plymouth Business Center, Normandale Lake Office Park and Minneapolis Industrial Park. We believe this depth of successful master planned development experience provides us with the unique ability to address all of Lake Pointe's needs. * We believe that we have developed an excellent an open working chemistry with staff inembers at The City of Fridley. This chemistry is crirical to the success of Lake Pointe. 2 e. Process and Reporting Phase I: Secure a commitment with a credit worthy user to construct a three story or larger Class A office building as quickly as possible, while setting the going forward framework for maximizing density and maintaining the quality of a master planned business campus. * We will implemeni a fomzal and systematic marketing program to access tenants for Lake Pointe in the quickest manner possible. Our marketing will include direct contact with: *Decision Makers within Metro Area Businesses, including the 31 Fortune 500 Companies Based Locally *Real Estate Brokers *Economic Development Authorities *Other Offices of The Galbreath Company *Real Estate Lenders and Investors *Real Estate Developers * We will provide monthly written reports of our marketing and sales calls and the status update of deals in progress. * We will underwrite and execute the first project at Lake Pointe with attention being paid to the long term development issues of the Park. Phase II: * In concert with the final commitment for the first project at Lake Pointe we hope to earn the right to become the developer of the Lake Pointe through either the execurion of a Development Contract or through an extension and expansion of scope of our Phase I Development Services Contract. * Phase II would include: *An update of the City's goals and objectives for Lake Pointe. *Land pricing *Tax impacts *Timing *Funding programs, impacts *Staffing *Other * A comprehensive review of the master plan to identify and address the then current market opportunities ta maximize the potential of the site. * A review and creation of a timeline for execution of transportation issues including Highway 65 intersection improvements and the renewal of the indirect source permit. * The crearion of The Lake Pointe Master Association which would then create the Rules and Regulations for the Park, including: *Building architechual review committee *Signage program *Landscaping program *Lighting requirements *Common area allocarions *Park cross easement language for items such as future parking structures. * An updated marketing plan. * Final determination of public improvements *Whose responsibility *Which ones and when These are the basic tenets from which we believe The Galbreath Campany, with WiIi Hoeg and Mike Denny as the point individuais, will be a61e to pravide the City of Fridley the best real estate service and ezecution for Lake Pointe. utp\DEVPKaut.COF 4 III. Fee Structure We propose a contract for Phase I development services as follows: * Initial term of eighteen months. * Cancellation with cause at any time. * Cancellation at the:City's sole discretion after nine months with thirty da.ys notice. * Monthly reta.iner for the first twelve months paid as follows: * $4000 per month in cash. *$4000 per month accrued and paid at the end of twelve months, unless contract is terminated for cause. * Commission of $1.00 per rentable square foot of building area for the first project, payable upon ground breaking. ulp\DEVPKout.COF . . . , �- . ., .. . . „ . . ... . . , ... , . .. . .. .... . .... _._ . .. ._ ..5�' y 4 I . , . , . , . ... . � .. . . .. _ . .. . . ... i..... ._- ... . � � � � J O � L� � i j �I V � v V ,• I � ; � � � J � ci U 2 0 O L V � ,O � � � ro � � ^ C � •3 0 o � � °n � c c T� � U U O �% � C C 3�,w- CA C U C cG C � � L lV' � O � O U L � � 0 3 U � � 0 E � u c R C Lir � � a - v cO y C U y Tj � N � � � y y 'S7 c� ' a -. .� d o 0 � U O �, �n ... a. 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I� 1 � V V •L a V u C C3 % Gz. ° � Q bD C � Y L R � bn o � R •� �a G .� � � � �% L :+ � � � � S� C �a �.�+ y y � � n ` H � i � ^ '� r � 'y� � L 0 �, a o r�n a°,�> � � � � � n y d i �co � d v !y d L 0� a ►! � O. 0 > v a � � a: O d � L � � � � � � L � 1r � «. y R a� G' 0 S� � i71 a E.« °'A o � -o � � � � d +. v d CL L� � W C� � C ,4�,,� =1 u p d a � O ° c, d 'u ia � � a> � G � O O � �w A �a � � � a a w ._.. ..�' . �2��'iac)iu)�<�<�;,;`;r,�;;:�:�`.'.. , . , . .... . . ��.�.i. . . . . � . .,. . . _ . . . , . . I I _ _ I Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY DATE: TO: FROM: SUBJECT: Density Issues City of Fridley July 14, 1995 William Burns, Executive Director of the HRA Barbara Dacy, Community Development Director Southwest Quadrant: Density and Street Access Issues There are three options for consideration: l. 2. Maintain the 48 units of senior condominiums at an additional cost to the HRA of $885,839. Eliminate senior housing and add 24 additional units of townhomes. There would be no additional cost to the HRA. 3. Substitute an 80 unit market rate senior apartment building in place of the 48 condominiums. There is an additional $277,073 required for this option. A summary matrix entitled "Comparison of Senior Options" is attached to compare the three options in terms of the project density, the total project taxes, the taxes per unit, the total project value, and the total additianal cost to the HRA beyond the original net budget cost of $2,400,000 (see attachment #1). Staff does not recommend option #2 (all townhomes) because eliminating the senior housing element from the redevelopment plan would be contrary to the original intent of the project. Further, it creates the lowest amount of value and taxes for the project. Option #1 creates the most amount of value ($14,409,000), but creates the most amount of additional cost to the HRA at $885,839. These costs can be reduced by reducing costs to the developer via waiving the park dedication fees ($109,500) and possibly waiving the Sewer Available Charge fees ($83,OU0). The park fees and the SAC fees would have to be waived by the City Council during the upcoming plat process. Despite these additional costs, the existing HRA budget can assume the . .. . ... � .- �� ,.. X . • . Density and Street Access; Stonegate July 14, 1995 Page 2 additional expenditures (see attachment #2). Option #3 proposes 80 market rate senior units. Factored into the financial analysis is approximately $78,000 of tax increment assistance for 15 years. Option #3 produces the most amount of annual taxes at $263,982. The project value is smaller than the condominium option by about $412,855. The decision becomes one of which priority the City Council and the HRA would like to establish. If the priority is for an owner-occupied unit which will create the most amount of value, option #1 should be chosen. If the priority is to maximize the number of units on the property and to create the most amount of tax generation on an annual basis at the cheapest cost, then option #3 should be chosen. In order for the project to proceed on a timely basis, one of these options must be chosen so that the developer can finalize the plans for final approval by the City Council. Access Issues There was a significant amount of discussion at the Planning Commission meetings about where the proposed 3rd Street aligrtment should be located. The Planning Coxnmission recommended approval of an alignment which proposes the street intersection 35 feet east of the existing location of 3rd Street near the liquor store. The Holly Center driveway would also be shifted 35 feet to the east. After Planning Commission consideration, Councilmember Billings expressed concern about the configuration of the road into the development. The City Council discussed this issue after its June 26, 1995 meeting and directed staff to work with the developer to develop an option such that the entrance into the development does not look like it is a connection into the neighborhood to the south. In other words, create an image that the road serves only the development. After reviewing several options with the developer, the developer is proposing to create a barrier in the 3rd Street right-of-way just before intersecting Satellite Lane. The barrier would force traffic needing to get to Satellite Lane to use the private drives between the eight unit townhomes. Fire lane access would still be provided for the Fire Department (see attachment #3). The barrier would consist of brick pavers raised to a slightly higher elevation than the public street. It would also be narrower than the street (20 feet), but protected by surmountable curbing. Its design needs to be carefully planned, but it could 3A .. .r .. ., ..:� .,. ,. .. . .. . . Density and Street Access; Stonegate July 14, 1995 Page 3 be designed so that it looks like it is part of the pedestrian/trail system. Staff recommends that the City analyze this approach more closely. Mississippi Street Improvements Anoka County will not issue a permit for work in the Mississippi Street right-of-way to shift the street intersection to the east 35 feet without completing a significant amount of improvements to Mississippi Street (see attachaient #4). The City Manager directed me to prepare a staff recommendation for this issue. He stated that if staff believed that Anoka County's recommendation was "ginger bread", then we should not make a professional recommendation to the City Council and HRA to implement it; however, if it has engineering merit, then, despite its cost, the City should closely evaluate it. An alternative to shifting the road intersection 35 feet to east is to simply maintain the existing location of the 3rd Street intersection into Mississippi Street (see attachment An Anoka County permit would not be required since no work be completed within the right-of-way, hence, there would b requirement for the improvement. the #5). would e no A sum7nary matrix of the pros and cons of each of the options has been prepared (see attachment #6). If the cost issue is eliminated, the proposed alignment to shift the road 35 feet to the east and realign the Holly Center driveway is the best alternative. Although it is painful to recommend an alternative which costs an additional $162,000, after evaluating the design, it is the safest and anticipates future traffic needs. Staff recommends that the proposed alignment to shift the road intersection 35 feet to the east be constructed. Staff also recommends that, to the extent possible, some type of cost sharing proposal be worked out with Holly Center and Rottlund Homes to minimize costs to the HRA. Summarv 1. The City Council and the HRA must choose one of three options for the construction of senior housing in the northeast corner of the site. 2. A carefully designed pavement barrier is recommended to be studied for 3rd Street. .,. � �w,�*.�,ti;,;:;.;�;�;�; �.ti �, ��: ;��;; ��;: �;_;; . .,..... . ... ,......,. ..._ ., . ... .� .. _ .,. .. ... . ,. .� ....... ._.. ....... . . .`:1,... .., ...., ... � Density and Stree� Access; Stonegate July 14, 1995 Page 4 3. Staff recommends the Stonegate plan propose construction of 3rd Street 35 feet to the east of the existing street intersection and that design include realigning the driveway for Holly Center. BD/dw M-95-402 3C , . ... >.. . . . ... .. . .. .t. ti i,:t,�. . . ....... ..>. ,.�:,�2;,;:t�tt�.{i2SUi>�25F�f`��:'C�2+7'�:',....,...i;�:i: .. . , , ..,.,.. . ... ... . � i I 11 4 ! I � � � ' � ' ' �+ I ..: . ..�.� . /, I j'. _ i � I 1 � � (LV 'AMH 31V1S) 3(1N3AV �111Sii3nlNfl � .�....� ..... �.. �. —• ■ w��—■ • ■.��—► r�-■ a r��• ■ ■� - 48 �ONDOMINiUM UNITS ;� I ' � � ' � t' � � ; +' ,� P � �� ( � I Z � w � a � � Q o � z a � � / �__ _' _\ \ � � :' . , , � -- � � � '� _— � , / / i w � N \, ' / � ' a ' / , a .. � r � . � �� ':. � •' �� h� '� �../ � � ^�'4 1 �� / : ,, / � ,/ I � � > � � a .. .� •� �` � \ I � I 1 � 1 ti � � . 1 , I � � ` � � ; � , ' , �``._+�i � � � Q F— 0 � Y ' PU ° - --(��sad�-- l�.l: _ —�-G►-- a 0 0 I � ��r �� I `� 1` �� + / � , 1 � 1 1 . .� � • �-- , —, o Id i � �� i � OPTION # 1 i I k� � .:.;�`. .. . ..: �� . . .:.. :.:.. .:: . . '�:.�. �:�' . . . . . . � .. .... .. ... .. ... ... .� .�. . ..... .�.�. .�.. . . ,� ...�. . . . . .. . . . . . . . . �. Y;kN SYiL 'M �+�i.7E".• ;;�,� :.,�� ( L� '1� M H 3 i d 1 S) 3 fl N 3 n y J� 1 � S� 'I A��:; :�;,.a_: z � :;:.<; :,. � � ... .„..,�,....�.._� ,�-�.�° ...�.� .. .: � : '� ..� � '!�'� ? i � J-- !� x z z z -� �� , . ' � --Q- x x --�- x x x ��_ : _. � .. ;. _.......�, '< ',; ��.� � � � �� w � i..,< � 1 l � = 1 l � � _ � 1. � � I � �. � � � � � N > � 1 � �- � a v � ' � 1 �� ! �� A � � Q �. � � I / // u � , /- � / / w �' / � / ' I / I -- / � / ' � - E � OPTION # 2 = y� � • ��. 'r y�. �. • n, .�.ti` �'. �:�1 �4 � ��' � ' � ```� i �H =�-t *��: �-� :� ( L t� '.l M H 3 1 tJ 1 S) 3 n N 3 11 b' .l i l S 2� ,rrr ; :�:;s.riK � :a?r�xr>at. ,,._.»�„,,,,„,,,. �..._.r^°._�.. . ��....._.«�........ ;, .,:.:::.....,_; ; ._ ._ ,..,. ; �....,._ ` � ,!�'' f ! ......... ? � �� x —Q-- x x -� x —0-- Y x � x x _. x _ j ;: ..._.:z...� .........=f �� ; j �.w �'i . - � � � � � i� � jP � ; � , � � � {� i 3 1 i � y ' O ` . � .�. �. � :. � _�. 0 � � � !'��..��j LV �r� ' � � � r� � � � � � O •� � � � V 1 . � 0 . , , Q. ''� , O t• / / v� '• '.�.%`• -•.�•.�.�r.��: �4.• � �. / � �.,...�+ / / � / �_ = — -- — — — _ / / � � `♦ � > � � v ;. OPTION #3 r i �-- — - .L� Total Project Units Density Total Project Taxes Taxes/Unit Total Project Value Total Additional Cost to the HRA (beyond original budget of $2,400,000) ..., i�i?i � COMPARISON OF uSENIOR" OPTIONS Option #1 Option #2 Option #3 (Senior Condo) (All Townhomes) (Senior Rental) 146 10.4 uni�s/acre $219,869 $1,505.95 $14,409,000 ($885,839) 122 8.7 units/acre $204,303 $1,675.61 $13,041,000 ($14,160) 178 12.7 units/acre $263,982 $1,483.04 $13,996,145 {$277,073) OTHER OPTIONS TO REDUCE HRA CC)STS: 1. Waive $109,500 Park Dedication Fees (City Counci) to determine) 2. Waive $83,000 SAC Fees (City Council to determine) ATTACHMENT # 1 3G �.�'K.::�....� .... �... .. . . . . . ... . . ........ . _.., .. . ... . � �.w�....�.�.i.�.�..�.�. ..... ..i. .. . ....... .. .... . . . ... . ..... 612 33� 3382 F,1 ?-` �:�- ;��;`._' L.AS�:ERLY MOLZAHN 841 F'�� CI7Y t�F FRtDLEY, MINN�SOTA * REVENU� EAP�D SALES TAX 4NCREM�t�lT TOT,� R�vENUE *EXPENSES TOTAL EXPENSES sURPE.US/(DEFICI� * MAFtKET VALU� SENIOR CONflO� NOMESTEAD AMOUNT UN1TS SENfpR R�NTALS iVON--HOMESTEAD AMdUNT UNITS 4PTION 1 0 1,074,1 �9 1,074,169 = 4,360,�8 (3,2$5,839) 81,000 48 OPT(ON 2 98�,000 952,478 l ,936,478 4,350,638 (2,41�,160) JUL 14'95 09:31 �P?1�N 3 1,028,000 1,253,881 2,281,881 4,958,954 (2,677�073) 43,439 80 T��NNHOME UNtTS HOMESTEAD AMOUNT 90,�0 �� g�� UNiTS {DETACHED 8 UNIT) � 72 � HpMEST�AD AMI�UNT 130,500 1�0�500 13D,5�0 UNITS {1 STORIO 26 26 26 HOMESTEAD AMOUNT i 17,000 117,OQ0 117,000 UNaTS (2 STaRY) 24 2a �4 NON-HdMESTEAD AMGUNT UNfTS {r�EHAB) TOTAL MARKET VALUE 1Q,409,000 13t041,000 13,996,145 * TAXES � 219,869 204,303 2&3,982 "' T�TAL NUMBER �� UNITS 146 i22 17'g �PTION 1: 14.0 AGRE - NEW CONSTRUCTION 146 UNITS � NO LAND PAYMEN�S TO AUTHORiTY OP"fION 2: 14.0 ACRE - NEW CONSTRUCTION 122 UNRYS NO SENIOR COMPONENT OPTiON 3: 14.0 ACRE - N�1N CONSTRUCTION 178 UNITS CIASS AATE FOR S�NIOR RENTALS - 2.39�, DEFICIT INCLU�ES PV OF ANNUAL T.I. REQUEST: $78,OOQ ASSUMES TAX EXEMPT $aNDS Al�iO TAX CREDtTS SWD F'REPARED BY CAS5ERLY 3H HN & ASSOCIATES, INC. 14-Jul--9 swcay ................. .... ... . . . . _ ,.. . . . . . . . . . . ... . ... ..... . . . .....,.. . . ... . . . . ................. ........... ...... ... ....... ..... . . ... . . . . . . . . . . . . . . . . . . . . . .._ _. . � '►612 334 3382 ' ' E,12-334-33°2 GHS�:ERLl' MOLZAHN 833 P03 -JtJL 13' �35 10_ 23 GIN O� FRlDLEY� MINNESOTA 80Uf?CES 8� U3E3 SiATE1VI�NT -� f3P1'I�f�I i 30URCES: TAX INCREMEN7 LANi3 SALES : iOTAL 3QURCES US�S: ACQUiSiT'i�N RELOCATiON �EMOLITIdN PUBt.IC IMPRQV�M�T175 (ROAD CONSTRtlCTI�Nj S� tNlPROVEMENTS (PqVEMFN1' RENfOVAL) ISSU{INC�/DtSCOUNT/i"lNANCIAt.i I.�CAl.jN�GAi'IVE ARBiTHAGE CON7`ING�NCY Tt37AL USE3 sU�cp�us/to�FtCrf} 1.074,169 0 1,074�165 2�836,96A 486,600 ��7,� �a 2i5,000 42.710 7,00°% OF TAX iNCREM�NT 7b,192 i0.4p% OF USE3 3gg,��q 4,3�,OOti PA�PARED BY CASSERLY MOLZAHN & ASSOCIATE3, INC. 31 ts,�ss,a�s} f 3—Jul—S5 ,'i• t;�`;;:;:;'`t;: ;; ;; :;th ::tr• ;R;;;ti�;';t;t;t;:;;;: , , '� ';" 2 . t +.r . 2i;�, , . ., <;?. . . . . .. . . . . . . . . . . . . . ... . . . . . . ... . .. . I _, o.t��r .'�i ?��:`i`?2�'i:�ti:..�>.�2.. ,., .,�i; ,., ,. ti,.,.. . , . .:+,�.�:.�^.��, `� �,"�..`�z?�i�`�:t b. ,..>,. . , .612 �334 3382` 61 LJ-�J=�—� .�S2 �_ HJJ�LY M� t-ZpHN 841 PEt3 JUL 14' 95 59 = 31 � CITY pF FRiDL�Y, MtNNESOiA i SOURCES & USES STATEMENT - QFTION 2 SOURCES: TAX INCREMENT �AND SALES -roTA� souRC�s � USES: ACQUISITION R�LOCATIaN DEMOUTiON PUBLIC (Mf'ROl/�MENTS (ROAD CONSTRUCTION) SITE iMPFtOV�MENTS (PRVEMENT REMOVAI} IS SUANCE%D ESCUUf�T/FINANCIA.L/ �EGAL/i�IEGATIVE ARBITRAGE CONTENGENCY TUTAL USES 3URPLUS((DEF1CIij 952,478 984,000 1, 936,478 2,836,968 486,600 247,174 275,OQ0 42,710 7.00% OF TAX INCREM�NT 68,673 10.4d% OF USES 395,513 SWQ2 PREpARED BY CASS�RLY MOLZAHN 8� ASSOCIATES, INC, 3J 4,35Q,638 (2,414,160) i 4—Jut-95 �3UNQ3 r,1;--._..^�l-_= -.:-:� [�HS'=�E�'L''r' l•10L�F-iHh�J =__ _ PG�c TI_IL 1 = ' '�� 1G� : `=� CfTY 4F �RtOLEY, MINNESOT'A souRCES & us�s srnr�tw�rvr - a�7ioN a SOURCES: 7AX lNCR�MEt+IT 1,�59,88i LAND SALES 1,428�OQ4 Tara� sQU�c�s 2,�ai,sai us�s: 7tF PAYM�N7S REk.O�GAT�GN ACQUISCfiC�ld DEMO�ITION PUSLfC #i4tPfli3VEM�NT8 (RC�AQ GUN8TRUCTIONj SITE IMPRC7VEMENTS (P'AVEMENT REMOVAl.j 1 SSUANG�JdISCt)UWT/�lNANCiAI,/ �.EGAUN�Gu4T11/� ARBITRAQE C0�1�ENGENCY TOTAi. iJ8E3 su��.us��r��ic� 531 �818 488,840 2.836��i$ 247,174 275�qt�0 4�,710 7.�t?% Q� 7AX p�ICREMENT 87,Ti2 i O.t)Q96 O� USES 450,814 4,988�96a PREPAREO 8Y CASSERIY MOLZAHN d�, ASSQGlATE8� fIVG. 3K 1��6n�072} 13-Ju1-95 '�� ss"g�s�ss�aooao ;} �- ��- �-- N N N N N N N N N N N N(V N N ��'� 1L O M V(V IA M O N O (^� Ol �f (O f'Q f� p� l7 �O "� (� �Cp � N c7 � O� f� .-- �� (Qpl Nf�!Op ('�- 1n Oa�p O) CD f(�p :`;� �..�.Z 7' Ol !O � cN7 (~O N � � O� N O b O (U � 1� (O lN0 (�O (p /� ;� � O t� t0 �A �A tn �f (7 ('� N N N t% C7 N.- : r •- � '- '- ;:U `: �� .. .� N CD Of �� N N�[ O OQ a0 Mp� b� � l7 l7 C7 M ;':>:::1:>: �::'c':�::� N Of � O� 1A ��t af Q W W ;;. ��.�:;Z f� CO h (O 1A 1n h� :::::z::� ��v�� .-.-.- ;�;� �� -.::;.;�� O� .'-- � �t � N n �O � � O aD aD a�D aD %:``:;.::'.j, �:< N N ' 1[l l9 st lO � O� N O N Ol Ol Ol � ':-''`K::�:«U�i t� N Ql �[1 O�O � t� W t� CO �7' l9 l9 l0 a9 ;;;:;:�:":;' ,ry 1p 1n N t� fD � � N�t I1D N N- �(O 1� :.lL �- QO 7<O Q1 l� �Y d'? 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Quad wili pay for itself. (1) 150,000 Frank's Used Cars 88,000 Gunderson Home 10,670 Plaza Area Tree Replacement � 0,000 Ban�ers for Mississippi St 4,500 2 Spare Decorative Lights _ 2,550 DQ Taxes — last year $265,720 File :"11230ATA�FiRA1TiFPR095�PRO.IECTS.wki 2/t/95 Li�ked To : CASHFLOW.wki 3M � � N W � 2 W C. 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ATTACHMENT #3 '�. I,�.:"::i:' "' .. . ::;; >��>: 13' �� Y 15' «z __ � .. .._.._ — — — — — — — — — — — — — — — — — — — — .�_.:�� -�---... _ ._ ................._ ...._----- -- _ . _---. _........�._—___.._..._r.__.--,--- - --.._._...__..........__._.._..__...____ ��_ .........._...........__� �'` 4' CONC. MEOIAN . 12` _ _� 14 _ " 12� 4' CONC. M � _ _ 100' STREET �3� — . . ::,.�._ __—_._.._. _....._ _.—. �—_— — — — _.-12` ..... . _....._____ .. __._._,__.__ ._- .__. _._� � __._. _ _.._.._------_ __ �.�__........_..__.__�._.� "—'------. 13' . ---�'- � _ •> � <<a� �� — � � — — ____ � <. _... .- - ' - � — ' — - _.. _.___ t..__. _. _ _.._ �..'^'_ T .--- -- • - ` � � __ -- - -- — � _ - -- - ' ' ' ", '� - - _.. ---- -- ---<;�-- _ - . — .------�...-..__ _ - ---__._�.�-. _ -----�-- —..�- -- .._— -- ' _ �t 18' i i � g' �� —� -- - . � _ �— — — — ao' �. '�� - _, � , �/ _ _ �� ` o �� PROPOSE STONEGATE OE PMEf� �\ � � _ �— — _ ♦ `�o S � ` _ � � ��r " i � � � _ _ � . \ . � ' '-� ` : 1 + - � ATTACHM � � ENT #4 � �, '� �. \ � ��-�= �-�::«� CSAH 6 RECONSTRUCTION PROJECT ROTTLUND/fRIOLEY PR£LIMINARY COST fSTIMATE DESCRIPTION COST/UNI7 QUANTITY UNIT AMOVNT CSAH 6 Remove Conc C&G Hemove Pipe Sewer Remove Conc Walk Bit. Sawcut Remove eit Pavement Remqve Conc Driveway Remove Brick Pavers � Hemove Catchbasin Ma�hole Aelocate Hydrani Commo� Excavation Traffic Control @ 10°6 Aggregate Base C1 5 Bituminous Pavement Conc C&G Median 3'.Co�c Walk Const CB Ma�hole 7 5" RCP Sewer Striping Field Survey Streetscape Improvements Ornamental Lighti�g Turf Establishment Brick Pavers 4" Co�c Walk Holly Shopping Center Remove Conc C&G Common Excavation Bit. Sawc�t Remove Bit Pavement Relxate Irrigation System Aggregate Base CI 5 Bituminous Pavement Conc C&G Field Survey Stonegate Common Excavation Aggregate Base CI 5 8itumi�ov5 Pavement Conc C&G 3' Conc Walk 17-May-95 52.90 1,250 lF 58.00 200 LF 50.75 5,900 Sf 51.50. 7,060 LF . , St,QO . 1;070. • SY S 10;00 90 51' 50.50 1,080 SF 5200.00 3 EA 51,250.00 7 EA . 52.00 800 CV 58.000.00 1 l5 57A0 760 TOO 535.00 280 TOP 55.00 7,825 LF 51.50 2,120 SF 52,500.00 3 EA 522.00 200 LF E3,500.00 1 �S 52,435.00 1 LS Subtotal Contingency 15% Eng & Admin 15% Total 54,200.00 3 EA 52.00 600 SY 53.00 2,120 SF 57.50 4,600 SF Subtotal Contingency 75% Eng & Admin 15% Totai 52.00 a00 �F 52.00 260 CY 57.50 230 LF 51.00 1,450 SY S 1.000.00 1 LS 57.00 • 500 TON 535.00 270 TON 56.00 375 Lf 51,200.00 7 LS Subtotal Contingency 75% Eng & Admin 15% Total 52.00 725. CY 57.00 80 70N E35.00 SO 70N 56.00 180 Lf 51.50 200 SF Subtotai Continger�cy 75% Eng & Admin 15% Total 52,500.00 51,600.00 54,425.00 E 7.590.00 f 1,Q70.00 5 90p.00 S 540.00 5600.00 57,250.00 S 1,600.00 E8,000.00 55,320.00 59.800.00 570,950.00 53, 7 80.00 57,500.00 54,400.00 53,500.00 E2,435_00 s�i,� so.00 St0,674.00 S 12.275.7 0 S 94,109.10 512.600.00 51,200.00 E6,360.00 56,900.00 527,060.00 54,059.00 54,667.85 535,786.85 5800.00 5520.00 E345.00 St,a50.00 E 1,000.00 43.500.00 E9,450.00 52,250.00 S 1,200.00 sso,s � s.00 53,077.25 53,538.8a S 27, i 31.09 SZ50.00 S 560.00 E 1,750.00 E/,080.00 5300.00 53,940.00 E59i.00 5679.65 $5,2i0.65 Grand Total S'I62,237.69 CSAH6. W K t 3Q Page 1 �y...,..�....._._....._...._....r- - - - — — — — — — — ^—._._ � -------- I _ - - ' � i_. s� R E��isting 3 rd St. � � ----�rr�a�reeOption � ----------- � _....__ - --- � - � �- — — — � � � I , � ` .� � � � r—_ _ � .— ..,�..r =� � . \ - �► -:�.�.,.` o—a o —b 'ROPOSE STONEGATE DE PMENT � � � � - . . �< � � �� _ , . .` \ � �� ..� � -t ., ♦.. � � � i � � x � ATTACHMENT #5 �� PROS AND CONS OF STREET INTERSECTION LOCATION PROS CONS N N N N N N N N /V N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N EXISTING ALIGNMENT * Eliminates cost of $162,238 * No Anoka County permit * Skews intersection more to prevent traffic from "cutting through" development * Area could be resenred for future improvements * Eliminates one detached town- home unit * Potential irritation to Anoka County * May. have to pay cost of improv- ing Mississippi Street in the fuiure * Skew of intersection is awkward * Future HOA may request City to pay N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N PROPOSED ALIGNMENT BY DEVELOPER (35' EAST OF EXIST(NG ALIGNMEN� * improvements are completed for potential long-term traffic control * Meets safety and design criteria established by the Couniy * Provides better parking design on Holly Center site * Adds cost to the redevelopment project * County refuses to help pay for improvements N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N What are the safety and design criteria accomplished by the proposed alignment? 'r� 2. 3 Provides protected turn lanes into Holly Center and Stonegate with protective raised medians. Provides adequate through-lanes on either side of turn lanes. Extends width/taper of eas#bound lane along the front of RAO Manufacturing #o permit better traffic maneuverability. , � f � 1 3S ATTACHMENT #6 ��I ...., .,. iv.x,voc�:xtctc:c�c.w� ••�._.. I ' .� I _ � . DATE: TO: FROM: Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley July 13, 1995 William Burns, Executive Director of the HRA Barbara Dacy, Community Development Director SUBJECT: HRA Ownership of Four Plex at 380 - 57th Place N.E. for Transitional Housing The HRA tabled action on this request at its June meeting. The City Council and staff are recommending that the HRA own the four plex and lease it to ACCAP for transitional housing services. Backc�round In September of 1994, the City supported ACCAP's application for MHFA funding to acquire and rehabilitate a four plex located at _ � __.�- ---- : - ' -�, At that time, e HRA agreed�to provi e rehabilitation assis a up to 50� of the rehabilitation costs, or $25,000 (the assistance was to be split between a loan and a deferred loan). MHFA funded the project, but not out of the original "transitional housing program". The funding was awarded from a different program entitled "Publicly Owned Transitional Housing and Battered Women and Other Crime Victims Facility Program". ACCAP had requested approximately $142,000; $92,000 was for the acquisition and $50,000 was for the rehabilitation costs. ACCAP has recently informed me that because MHFA funded the appliaation out of the publicly owned account, more money exists in that account so that � �-' " ACCAP has also received a preliminary estimate from an regarding the rehabilitation. It is estimated that . ,�;n ca`�5 �►'�-1�.-�r�nnr�i�`,,,�t-Q ��d-s� Coupled architect with the The "public owner" would lease to ACCAP who in turn will contract with Lutheran Social Services to provide the transitional housing service. HRA Ownership of Four Plex July 13, 1995 Page 2 Previous Council Review The City Councii discussed this issue in November 1994 and in March 1995. In the March memo, stafi had recommended County ownership: The City Council asked staff to determine if Courity ownership would mar►date City participation in a County levy. I Current Status Tim Yantos confirmed that ownership would not automatically dictate the levy. Both the HRA and the City Council would have to pass a resolution stating that the City is willing to be subject to a County tax Tevy. AnotYier resolution would be needed to request the County to own the four plex. Yantos also stated, however, that Commissioner McCarron was concerned about a policy being developed where the County is asked to perform a service, and then asked not to have an ability to recover any costs for performing the service. - Anoka County staff in the meantime has made a recommendation to the County HRA that the four plex be owned by the City (see letter from Jerry Soma, Interim Division Manager, dated May 16, 1995). Policv Changes Since discussion of this item, a number of issues regarding the City's ability to provide affordable housing has been raised as a result of the Southwest Quadrant redevelopment. � ' n.� �hA< frsrr�"�STcsr� rn�"m"'�"�FrxinAra'T-_m�rfirdfr—a�rra�T^f-mant--�rri T7 i=r�cr-.'i�r� rmn�-._ L�aL t etetz--��z�r_ a ar a�le. nou�_�no.�as. in con n�erott_ wrtn _a ocial . service pra��t �on��a�, �i��_,-an: addition o_�-�our afforc�a� ...__�_ usi� __ s o ine with the 18 Hyde Park cooperat�ive un� i.�s`, i�Ci�added 22 affordabZe units to the City's housing stock in the last six months. proposed agreement is a�tached: - - - 2. They will be responsibZe for ��n:c�?�anG�= c��*'�or the property (paragraph 14 of the agreement). 2. ACCAP will assume ali operating casts�g3.__. ',,. .:,e,�,� �� i ment re Iace ��"�""`grap�"'�i `2 of e agreement) �� .��.,....� p ____.__ _...�. p �� • 3. ACCAP will �� io--pay--the Cit�r's por�n _of_ ti��;�rea�. --e�ta�e•�--ta� (paragrap 6 o e agreement) . - � � � HRA Ownership of Four Plex July 13, 1995 Page 3 4. ACCAP �� Ma�p �i b= �he diffe�.ence betwee�t tiz�-��e--p�ice� �sf" }h��--Lr.,=x�_�-an�_t:�� .oric�inal mortgage pric� if a faree� sa �.�� i� GtatQd priar-��Q the_ e�ixation of th�� ZO � year� m�;,,,+��„a�c�„�(paragraph 13 of the agreement) . 5. ACCAP.�a��-=a.� �a-:lead: cantac'�,;�egarding any property maintenance or neighborhoocl issues (no public hearing is required). The agreement is now being reviewed by Jim Hoeft. If there are any substantive changes, those will be presented Monday evening. RECOMMENDATION Staff recommends that the Fridley HRA own the four plex. Ownership would assist the City in meeting an affordable housing goal, and secondly, the property management agreement seems to resolve any financial, legal, or insurance risks. City ownership would eliminate any question regarding the provision of County services within the City and its implications for a future County tax levy. Finally, there will be no costs to the HRA for the project, other than administrative expenses. BD/dw M-95-397 � � � ��«• C�yA .,�� . . -� .. .�_� . ~�NNES�� . COUNTY OF ANOKA HUMAN SERVICES DIVISTON ADMINISTRATION & FiNANCE GOVERNMENT CENTER • 2100 3RD AVEIYUE • ANOKA, MN 55303-2264 ADMW[STRATION 612-422-7000 FAX:612-422-6987 FINANCE 512-422-�092. FAX:612-422-6988 . . - Dr. WiIIiam W_ Burns, City Manager City of Fridley 6431 University Avenue NE Fridley, MN 55432 Dear Dr. Burns: May 16, 1995 This letter is to express the support of the Anoka Counry Human Services Division for the use of the four-plex located at 380 57th Place for transitional housing for famiIies. There is a major need in Anoka County for such housing. Our desire is that this house provide a stable, safe environment for homeless families winc �hildren. We believe the housing and services provided at this location will provide an appropriate response to families in crisis. Anoka County is currently forced to place some homeless families in motet units untii more suitab[e housing can be located. While this can serve as an immediate response to the needs of a homeless family, it is a poor approach for more than a night or two. It is our understanding that the Minnesota Housing Finance Agency (MHFA) funding received by the Anoka County Community Action Program (ACCA.P) for the purchase and renovation of this properry can only be used if the property is transferred to public ownership. Since we are interested in this property for use as transitional housing, we hope that this transfer of ownership can occur. A municipal or county HRA would be a public entity that coutd hold titte to this property_ Therefore, we are requesting that the Fridley HRA consider h0lding title to this property so that we can utilize the MHFA funding to meet this need. We would like to discuss this concept and deiermine the city's interest in holding title to the property. I've asked Edna Hoium of our staff to call you in the next week to answer any questions you might have and determine how you would like to proceed in this matter. Thank you in advance for your consideration. Sincerely, Jerry Soma Interim Division Manager gd �: �«:___.:.._ ^_..__ . � 4C ��.�.Yl (J�.� U7D I.UIIYY� �job �� frl �o,�u,4. �1n��,c�r�o�t, � S�,v� �� . ._.._ -P��c;��. �,-�.,c.�CL�c�� PROPERTY MANAGEMENT AGREEMENT This Agreement, made and entered into by and between the Fridley Housing and Redevelopment Authority, a public body, corporate and politic, organized under Minn. Stat. S 469.090 et. seq., 6431 University Avenue N.E., Fridley, Minnesota, 55432, hereinafter referred to as the "HRA", and the Anoka County Community Action Program, Inc., Minnesota private nonprofit corporation, 1201 89th Avenue N.E., Suite 3.45, Blaine, Minnesota 55434, hereinafter referred to as "ACCAP". WITNESSETH THAT: WHEREAS, the HRA owns a four (4) plex situated in the City of Fridley, County of Anoka, State of Minnesota, legally described as Lots 12 & 13, Block •6, City View (hereinafter the "Property"); and, WHEREAS, there is a demonstrated need for short term transitional housing for low income residents, particularly for families from the City of Fridley and County of Anoka; and, WHEREAS, ACCAP has adopted a transitional housing program designed to assist in fulfilling said demonstrated need for such short term housing; and, WHEREAS, this property has been adapted to help fulfill the need for such short term housing; and, WHEREAS, ACCAP in conjunction with other sponsoring agencies has formulated a transitional housing project to help fulfill the need for short term transitional housing, and, WHEREAS, to implement the transitional housing program, ACCAP desires to manage this Property and lease said Property to Lutheran Social Services, Inc. who will make this Property available for their clients to live in as part of their transitional housing project; and, WHEREAS, ACCAP is experienced in the business of operating and managing a property similar to the above described Properties. NOW THEREFORE, in consideration of the mutual covenants and agreement contained herein, the parties do covenant and agree as follows: 1. EXCLUSIVE RIGHT TO MANAGE The HRA hereby grants to ACCAP the exclusive right to manage this Property and ACCAP accepts the appointment, subject to the terms 4D Property Management Agreement June, 1995 page 2 and conditions set forth in this Agreement. This Property to be managed by ACCAP under this Agreement consists of one (1) four (4} unit apartment.situated in the City of Fridley, County of Anoka, State ot Minnesota, legally described as Lots 12 & 13, Block 6, City View. ACCAP sha�l be in exclusive control and possession of this Property and the HRA shall not be liable for any injury or any damage to any property or to any person happening on or about this Property or any person thereon. ACCAP shall be responsible to lease this Property to the sponsoring agency, Lutheran Social Services, Inc. or an equivalent nonprofit transitional housing provider .acceptable to the HRA, who will make this Property available to their clients in the transitional housing project. 2. MAINTENANCE AND REPAIR ACCAP shall, at all times during the term of this Agreement, at its own cost and expense, repair, replace and maintain in a good, safe and substantial condition, any buildings and any improvements, additions, and alterations thereto on this Property, and shall use all reasonable precautions to prevent waste, damage or injury to this Property. ACCAP shall maintain this Property in good repair including, but not limited to cleaning, painting, decorating, plumbing, carpentry, groundscare and such other maintenance or repair work as may be necessary. ACCAP further agrees to main�ain this Property in compliance with all applicable health and safety laws of the State and of local units of Government where this Property is located. At all time during the term of this Agreement, ACCAP shall maintain and repair this Property so it shall not be in such a condition as to constitute a violation of any applicable, State, County, or City health, housing, building fire prevention, or housing maintenance codes. 3. RECORDS AND REPORTS ACCAP shall keep books, accounts and records that reflect all revenue and any expenditures incurred in connection with the management and operation of this Property. ACCAP shall also keep records of the number, type, category and length of residency of the people served under the transitional housing project. The books, accounts and records shall be maintained at ACCAP's principal place of business. ACCAP shall, during regular business hours, make the books, accounts and records required to be maintained hereunder, available to the HRA or the representatives of the HRA for examination and audit upon reasonable notice. Within sixty (60) days of the end of each calendar year, ACCAP shall prepare and deliver the HR.A a detailed statement of the number, types, categories and length of residency of the people 4E Property Management Agreement June, 1995 page 3 served under the project and a detailed statement of the revenues received and expenditures incurred and paid during the calendar year .that resulted from the operations of this Property and the transitional housing project. 4. BANK ACCOUNT ACCAP shall deposit (either directly or in a depository bank for transmittal, all revenues from this Property into an account maintained at a national or state member bank who is a member of the Federal Deposit Insurance Corporation. ACCAP shall keep a detailed record of deposits and withdrawals from said account so as to adequately insure that the monies from the transitional housing project can be accounted for. With the revenues deposited in said account, ACCAP shall pay a11 items with respect to this Property. 5. LTTILITIES Al1 applications and connections for necessary utility services on this property shall be made in the name of ACCAP only, and ACCAP shall be solely liable for utility charges as they become due, including those for sewer, water, gas, electricit�r and telephone services. 6. TAXES AND SPECIAL ASSESSMENTS ACCAP shall pay any and all taxes and special assessments on this Property which may arise during the term of this Agreement. ACCAP agrees that for the tax years that this property will be in exempt status, ACCAP will reimburse the HRA for the local share of property taxes on this property as reflected at its current tax classification rate. The HRA will invoice ACCAP by August lst of the respective years ad ACCAP will make the payment to the HRA by October 15th. 7. ALTER.ATIONS AND IMPROVEMENTS ACCAP shall make no alterations to the buildings on this Property or construct any building or make other improvements on this Property which exceed $5,000.00 without the prior written consent of the HRA. All alterations, changes or improvements located, constructed or placed on this Property by ACCAP shall, unless otherwise provided by written agreement between the parties, be the property of the HRA. 8. USE OF THIS PROPERTY This Property shall be used and occupied solely by individuals 4F Property Management Agreement June, 1995 page 4 placed by the sponsoring agencies in the transitional housing project. ACCAP shall maintain and operate the transitional housing project on-this Property in accordance with.all current State, County, municipal health and saiety regulatians. ACCAP shall not us.e or permit this Property or any part thereof to be used for any purpose other than the purpose or purposes stated herein. 9. SURRENDER OF THIS PROPERTY At the expiration or termination of this Agreement or any subsequent agreement, ACCAP shall vacate �and surrender this Property in as good a state and condition as they were after the completion of the rehabilitation work, reasonable wear and tear excepted. 10. INDEPENDENT CONTRACTOR It is agreed that nothing herein contained is intended or should be construed in any manner as creating or establishing a relationship of co-partners between the parties hereto. ACCAP is and shall remain an independent contractor with respect to all services and liabilities performed under this Agreement. Al1 individuals hired by ACCAP pursuant to this Agreement shall be considered employees of ACCAP and shall not be considered employees of the HRA for any purpose or in any manner whatsoever. 11. NO PROPERTY INTEREST CREATED Nothing contained in this Agreement shall be deemed to create or shall be construed as creating in ACCAP any property interest in or to this Property. 12. INDEMNIFICATION The HR.A shall not be liable for any loss, injury, death or damage to persons whose property which at any time amy be suffered or sustained by ACCAP or by any person who may at any time using or occupying or visiting this Property or be in, on, or about the same, whether such loss, injury, death or damage shall be caused by or any way result from or arise out of any act, omission, or negligence of ACCAP or of any occupan� sponsoring agency, visitor, or user of any portion of this Property, or shall result from or be caused by any other matter or thing whether of the same kind as or of a different kind than the matters or things above set forth. ACCAP shall indemnify the HRA against all claims, liabilities, loss or damage whatsoever on account of any such loss, injury, death or damage. 4G �.:�:�::i,r:�;:',.` .... . ....... ........ Property Management Agreement June, 1995 page 5 13. HOLD HARMLESS ACCAP agrees to hold harmless the HRA for any shortfall in the operation of this property, as well as any shortfall associated with the applicable ru,�es and regulations of the Minnesota Housing Finance Agency and the underlying mortgage on this property. 14. INSURANCE ACCAP shall, at all times during the term of this Agreement, and at ACCAP's sole expense, keep all improvements which are now or hereafter a part of this Property insured against loss or damage by fire and the extended coverage hazards for the replacement value of such improvements. Full replacement value cannot be mutually agreed upon, then full replacement value shall be determined by the Anoka County Assessor. ACCAP shall also maintain in effect throughout the term of this Agreement personal injury liability insurance covering the premises and its appurtenances and the sidewalk fronting thereon in the amount of $200, 000.00 for property damage and/or inj ury to or death of any one person and $ 6 0 0, 0 0 0 f or property damage andJor injury to or death of any number of persons in one occurrence. ACCAP shall at the time of the execution of this Agreement and from time to time thereafter provide proof of said insurance. In the event of any lass, damage, or destruction of this Property, any proceeds from said policies shall be paid to the HRA who, in its sole discretion, shall determine whether the proceeds shall be used to repair or replace any and all improvements on this Property. In the event the proceeds are not used to repair or replace the improvement on this Property, the proceeds shall be used for a purpose which is consistent with those of the transitional housing project or to satisfy the MHFA Repayment Agreement. ACCAP shall have the HRA named as additional insured on all insurance policies required herein. 14. ASSIGNMENT Neither party to this Agreement shall assign the Agreement, nor any interest or rights therein, without the written consent of the other. 15. RIGHT OF ENTRY The HR.A and the HRA's appointed agents reserve the right to enter this Property at all reasonable hours upon reasonable notice during the term of this Agreement and any renewal thereof for the purpose of inspecting this Property and all building improvements thereon. 4H Property Management Agreement June, 1995 page 6 16. LIENS ACCAP shall keep this Property and every part thereof and aIl buildings and other improvements at any time located thereon free and clear o� any and all mechanics, materialmans and other lie�s for or arising out of or in connection with work or labor done, service performed or materials or appliances used or furnished for or in connection with any operation of ACCAP, any alteration, improvements or repairs or additions which ACCAP may make or permit or cause to be made, or any work or construction by, for or permitted by ACCAP on or about this Property, or any obligations of any kind incurred by ACCAP, and at all times promptly and fully pay, discharge any and all claims on which any such lien may or could be based, and to indemnify the HRA and this Property against all such liens and claims of liens and suits or other proceedings pertaining there�o, provided, however, that ACCAP shall not be responsible to pay or discharge any lien upon said Property if the Iien is not the result of their actions under the terms of this Agreement. 17. TERM OF AGREEMENT This Agreement shall be for a term commencing on , 1995 and ending on , 2000, and any further extensions as agreed to by the parties, the date of signatures notwithstanding. 18. LICENSE OF ACCAP ACCAP shall at all times during the term of this Agreement maintain such licenses and permits as are required for any of the various services to be performed by ACCAP or the sponsoring agencies. 19. TERMINATION OF AGREEMENT The HRA may terminate this Agreement upon ACCAP's failure to perform or abide by any of the terms or conditions herein. Prior to termination, the HRA shall give to ACCAP, written notice of the grounds for termination and allow ACCAP reasonable time to remedy the conditions. 20. E4UAL EMPLOYMENT OPPORTUNITY - CIVIL RIGHTS During the term of this Agreement, ACCAP agrees to the following: No person shall, on the grounds of race, color, religion, age, sex, disability, marital status (affectional preference), public assistance status, criminal record, creed, or national origin, be excluded from full employment rights in, participation in, or 41 Property Management Agreement June, 1995 page 7 denied the benefit of, or be otherwise subject to discrimination under any program, service or activity under the provisions of any and all applicable Federal and State laws against discrimination including the Civil Rights Act of 1964. ACCAP will furnish to the HR.A all reports required by Executive Order No. 11246 and Revised Order No. 4, and by the rules and reguiations and orders of the Secretary of Labor, Minnesota Department of Human Services, for purposes of investigation to ascertain compliance with such laws, regulations and orders. 21. DATA PRACTICES All data collected, created, received, maintained or disseminated or used for any purposes in the course of ACCAP's performance of this Agreement is governed by the Minnesota Government Data Practices Act, Minnesota Statutes 1984, Section 13.01, et. seq., or any other applicable state statutes and any state rules adopted to implement the Act, as well as 5tate statutes and Federal regulations on data privacy. ACCAP agrees to abide by these statutes, rules and regulations as they may be amended. 22. MODIFICATIONS This Agreement may not be modified unless such modification is in writing and signed by both parties to this Agreement. 23. NOTICES Any notice or demand required by the provisions of this Agreement to be given to the HRA or ACCAP shall be deemed to have been given adequately, if sent by certified mail, to the following address: ACCAP: Anoka County Community Action Program, Inc. 1201 89th Avenue N.E., Suite 345 Blaine, Minnesota 55434 Attn: Executive Directox' HRA: Fridley HRA 6431 University Avenue N.E. Fridley, Minnesota 55432 Attn: Executive Director IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written. FRIDLEY HOUSING AND ANOKA COUNTY COMMUNITY ACTION AND REDEVELOPMENT AUTHORITY PROGRAM, INC. 4J Property Management Agreement June, 1995 page 8 Date Executive Director Date �� Patrick McFarland Date Exe�utive Director � Date �•�a�:-��-1�+�� sa:a�� I�axwim Linc�ahl Architect �TATEME�iT OF PR4�iABLE CONS7RUCTiC.1N G�S`�` Ciry �ew Apartments 380 - 58th Place N. E. Fridlsy, 1VtN � File Na: 9503 March 23, 1995 ihe fioilowing is a br�akdawn of N�e estimated canstructian cost for the necessary improvementlrnaintenance items. �� 2. UNIT #1 A. Replace unit entry daors {front and bac4cj B. Replace unit inter�ar doors as �equired C. Renovation o# Kitchen D. Re�ovation of Bathroom as required E. Reptacemecrt of carpet and vinyi flaoring F. Miscellan�ous radiatia� cover repairs G. �teplace smoke d�tector Tatai estimated cost for Unit #i UNIT #2 - A. Rep(ace unit entry doars (froni a�d back) B. Replace unit interior doars as required C. Renovation o# K'�ichen p. Renovatian of 6ath�oom as required E. Replacement of carpet anci vi�yl flooring �. t�epiace light ftxtures as required G. Replace smoke detector Total c�siimated cost for Unit #2 3_ UNiT A. B. C. D. �. G. #3 Replace unit entry doo�s (Eront a�+d back} Replace unit interior doors as required Renovation of Kitchen Renovati�n of Bathroam as required Replacement of carpet and viny! flooring Reptace smoke detector Tota{ estimated cost fior Unit #3 tt605)535-3007 3836 Hampshire A•'e. N. Minneapol"�s, MN 55427 4L $ 92Q.00 900.OQ 97Q.00 1,854.00 1,200.00 100.00 50.�0 � 920.Q0 500.40 97Q.QCl 1,$50.00 1,200.00 100.00 50.00 $ 920.0� 900.00 970.04 1,850.00 1,20�_00 � �•. u� � �,940.00 � � ti� �.,�so.00 :•� �• ....�.;. .,. . . . .., ,n ... ...... . . ... ....�a . , . ... ,.,.,, . ,....., ,... ,.. . ., . ... . , ... . . . . . ,.. _1`11-1F,'—'-'�-1'�'�c 5=�� 4. U NtT #4 A. Replace un�t e�try doors {fron# and back) B_ Replace unit interior doors as required C. Renovatior� of Kitch�n D. Renovativn vf 6athroom as required E. Replacement of carpet and vinyl flooring F. Repface light fixtures as required C . Repiace sntioke de�ector � Totat estimated cost for Unit #4 :5.tNT��'14R COM�J[ON SPACES A. 4aundry room vinyl til� ftaar B. Stair way f�ooring �placement . C. �ight fixture repiacernen# D_ Etectricai circuit breaker repiacament Tota! �stimated cast for cornmon spaces 6. BUELDiNG EXYERIOR A. Window replacement B. Entry door replacement ( fron# and back) C. Re-rooftng Q. Augment attic insula#ion E. Re-dash stucco �. Raplace gutters and downspouts G. Aluminum fascia/sofft I. lntercorn system a# firont door Totai estimated cost for building exterior 7. SiTE 1MPR�VElVIENTS A. Trash enclosure B. Lar�dscaping C. Gonstruct new four stall garage G. Parking lot overlay Tatal estimated cost af site improvements Tota1 estimated cor�struction cost G�nerat conditions (5%� Contractor's averhead and profit { 10%) Tatai Estimated Project Gonstruction Cost page 2 of 2 4M $ 920.00 90Q.00 970.OQ 1,850.0� 1,200.00 50.Oa 50.00 � 650.d0 �so.o.o 500.00 1.05Q.00 � � o,soa.00 � ,p00.00 2,�00.00 500.04 2, 700.40 1,$00.00 975.00 _ 750.00 � �,soo.00 1,000.00 22.500.00 3.500.00 F.�? $ 5,940.00 �, •.i r� $ 20,925.00 � as soo � $ 73,25�.�0 3,660.00 7 6�o.ao $ 84 605.04 380 57th Place Transitional Housing Project ACCAP and Lutheran Social Services BACKGROUND: 1. ACCAP applies for MHFA funding in September 1994 to acquire and rehab 4-plex. 2. Funding source was titled nTransitional Housing Program". PROJECT DETAILS: l. Purchase price: $92,000 2. Rehab costs: $84,605 3. Total requested: $176,605 4. Garage could be constructed on the site with variances (site is a double fronted lot). 5. The building has 3 two bedrooms and 1 one bedroom. 6. MHFA funding is a 20 year deferred loan; if property is sold, NgiFA must be repaid in its entirety. CURRENT STATUS: 1. MHFA funded the request, but from a different program account which mandates ownership by a"local government unit." 2. The title of the program is "Publicly-Owned Transitional Housing and Battered Women and Other Crime Victims Facility Program" . 3. Lutheran Social 5ervices (LSS) was contacted by ACCAP to act as the ��provider" of the transitional housing service. The public owner would lease to ACCAP who would in turn contract with LSS to provide the services. 4. LSS wants to expand its service delivery into Anoka County given the demand for this type of service. 5. ACCAP states that additional funding exists in the new MHFA account to fund all rehab costs plus additional expenses like a new garage. HRA assistance is not needed for this project. 6. There are two tenants in the building on a month to month lease. ACCAP will lease one of the units to a"caretaker". The existing tenants may be transferred to the coop buildings in Hyde Park. 4N ,. , . . . . .. . , ;: _ . . . . .,., TRANSITIONAL HOUSING: 1. Anoka County receives 200 to 300 caZls per month from peopZe seeking housing. 2. Motels have been used to fill some of the demand, but are not solutions for families in crisis. 3. Transitional housing...is temporary hQUSing �aith support services, 4. By providing temporary housing, support services can then be provided to the families/individuals to stabilize the immediate problems, and then help them find permanent housing. LUTHERAN SOCIAL SERVICES: l. 2. 3. 4. LSS is owned by the six Minnesota synods of the Evangelical Lutheran Church in America. Programs include outreach to youth at-risk, programs for the disabled persons, counseling, senior services; and housing and advocacy. Funding is obtained from United Way, church congregations, and other private foundations or grant sources. Funding for the Fridley project would be obtained on an annual basis from the sources identified above. 5. Potential tenants must be screened by LSS prior to occupancy. Individuals needing chemical dependcy, abuse counseling, or mental health services are referred to other programs or resources. 6. 7. 8. 9. The one bedroom unit would be occupied by a permanent tenant; the tenant would not be an employee of LSS. LSS would provide ongoing couseling and case management services ta the occupants. Rents to be charged are $400 for the two bedroom units and $350 for the one bedroom unit. This is NOT a drop-in shelter; all occupants must be screened. 10. LSS leases two homes from HUD to provide other services; one is in Coon Rapids and the other is located at 6130 Stariite Circle in Fridley. OWNERSHIP RESPONSIBILITIES: 1. There are two options: City/HRA ownership and Anoka County HRA ownership. 40 � 2. Anoka County ownership would require execution and approval of a Joint Powers Agreement, and prior to this, resolutions from the HRA and City Council requesting the Anoka County HRA to perform this service. Anoka County has indicated that it does not to own the four plex and would like the City or City HRA to own it. 3. Despite who owns the buildings, ACCAP will agree to the following: - a. The building will be leased to ACCAP, who in turn will execute a provider agreement with Lutheran Social Services to provide the transitional housing service. b. ACCAP will provide insurance for the property (based on replacement value), personal injury liability, and property damage liability insurance. c. ACCAP will assume all operating costs plus maintenance and equipment replacement. d. ACCAP will pay the City's portion of the real estate taxes. e. ACCAP will act as the lead contact regarding any property or neighborhood issues. f. If the owner is forced to sel.l the property prior to e�cpiration of the 20 year mortgage, ACCAP will make up the difference between the sale price and the original mortgage price. 4. ACCAP would complete rehab and renovation prior to conveying to new owner. 5. Service provider would be responsible for reserve account for future improvements. RECOMMENDATION: Staff recommends that the City HRA assume ownership of the four- plex subject to execution of a Property Maintenance Agreement with ACCAP with the provisions listed in #3 above. � • ., . � � _ � DATE: TO: FROM: SUBJECT: Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City af Fridley July 13, 1995 William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator Authorization to Acquire �°•`- ��?Si_ St�eet -I�[��` This is a one story, single-family home located in the Iiyde Park neighborhood and is owned by Rodger Geyer, 4466 Constance Boulevard, Ham Lake, MN. The property has suffered from deferred maintenance and has structural problems, most notably a severely rotted roof over the back addition. Due to the condition of the home, its small size and design, it is a good candidate for the program. The house was built in 1948 and is located on an 80 ft. x 129 ft. lot which is considered buildable by City code. The County has the house valued for taxes purposes at $47,697 ($21,140 land; $20,603 building and $5,954 special feature). Staff had the property appraised by Richard Erickson of Appraisal Engineering Bureau for $36,000. The owner agreed to sell for $38,000 which is within HRA negotiation guidelines. Once acquired, the home will be torn down and through our Housing Replacement program. It this is the second property acquired in Hyde the 12th property purchased since the progra Recommendation the lot re-sold is worth noting that Park this year, and m began last year. Staff recommends that the HRA approve the purchase of 5924 2nd St. for $38,000 and further that the HRA Director is authorized to execute all documents necessary to complete the purchase. GF/ M-95-398 , � �;, ,��A . �� _� ��-•+,_„_ r ��;�?� ��fZ . �'isi►�� .��%�� r r fA� � •9 ' $ tS. ' F � I �. � A / y . -. 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'�a.� � �h ' ... i ��4� a..ta L ,`2xc [ .�Mr`.nY � G: -n^v�±� _ r�`+�,�' xr 'c.+,h." �-`':.t s7v�. _.t 1 � . � Scattered Site Acquisition / Housing Replacement Program Status Report Buildable Lots Address 1 6409 East River Rd. 2 8280 East River Rd. 3 539 Glencoe St. (*) 4 547 Glencoe St. (*) 5 677 Hugo St. 6 187 Longfellow St. 7 540 Hugo St. (*) 8 550 Hugo St. (*) 9 533 Janesville 10 5924 2nd St. Non — Buildable Lots Address 1 6000 2nd St. 2 683 Glencoe St. Acquired Demolished Sold 7/94 6/94 2/95 11 /94 9/94 , 4/94 � 5/95 9/94 5/95 Pending 8/94 8/94 5/95 5/95 11 /94 8/94 Pending 1 i /94 Pending Pending Acquired Demolished Pending Pending 9/94 5/95 07/13/95 Builder/Owner Yes Whitney Homes Yes Whitney Homes Yes Whitney Homes Yes Whitney Homes Yes Whitney Homes Yes Whitney Homes No HRA No HRA No HRA No HRA Sold Builder/Owner Pending ** HRA No HRA Notes: * — Lots will be combined. . ** — Property will either be sold or leased to ACCAP which owns a fourplex next door. Site may be re—used for additionai parking spaces and/or garage. r � r � � � DATE: TO: FROM: SUBJECT: Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley July 13, 1995 William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator Establish Public Hearing Date for This is a vacant parcel of land located along East River Rd.,�, ��rt� ��:-r.�,�ks� �7:akp_ �r�a �e�-'. It was purchased by Anoka County several years ago for a road project and the home was torn down. Since then, the lot has remained vacant and unbuildable due to a utility easement which runs across the middle of the property. The neighbor to the south approached the County about buying the property, however by law the County is unable to sell the property to a private party. The County approached the HRA about the possibility of acting as an intermediary to acquire and then re-sell the property to Roberta Moore. � Ms. Moore has agreed to purchase the property for $6,800 and cover any legal costs associated with the transaction. However, before the property can be conveyed to Ms. Moore, the HRA is required to hold a public hearing. The hearing will be held at the next regular meeting of the HRA on August lOth. Recommendation Staff recommends that the HRA call a public hearing for August 10, 1995 for the disposition of Lot 4, Block 1, Scherer Addition. GF/ M-95-399 � -� � _ � I DATE: TO: FROM: SUBJECT• Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley March 3, 1995 � William W. Burns, Executive Director of HRA �� Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator Consider Temporary Purchase of Vacant Lot from Anoka County On February 8th staff was contacted by Mike Kelly from the Anoka County Highway Department about a vacant parcel they own along East River Road just north of the Locke Lake dam. Kelly indicated that they were contacted by the homeowner immediately to the south of the site concerning their interest in buying the parcel. The County appar.ently has no need�for the property (it was acquired several years for.a road project and the home zaas removed) and doesn't want to continue to�maintain it. Roberta Moore who lives south of the site, has expressed interest in buying the property (see attached letter) and enlarging her yard. Under state law, the County.is unable to convey the property directly to a private party, but can.convey it to another governmental body such as an HRA. In essence, the County would sell the property to the HRA far an agreed upon price and then the HRA could iurn around and sell it to a third party. � We did consider the lot as a potential new home site, but have concluded that it may be difficult to market due to its location along East River Road. Unless otherwise directed, Staff wiil proceed with negotiations on the purchase and conveyance of the lot with the understanding that the HRA will not bear any expenses in the transaction. GF/ M-95-143 3A . . h1..... .�.... ... . . . .�. ... . ..... . . . .. . .. . . . . . .. . � . . . ... . . .. ... ClT y �F FRIDL F" Y � � 0 � � . �� Q , 3 � � � Q� __ _�. � � ' , :: � � , - }(/ , •� J�N RD� - ; ;� Q >j � -- . . .Q�v s :; x .. :, � � � _O .� /V t � , . �, .. . � �� ; � IL � � ��:=. _ ,- .. J � : `� �_ . _ - -- . . . -_� � � C'� � •�� , . 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' i r '�: '�"� , �� = ~- � � 4STMA S S�C ND . ~ i X � . s'.i .r t � ' — . i r,iit i: � i (j�� 1 ' � l�N� , �, , �,• r , �••r r � I • i s., Z � �� 3 . ►N! ' .i � �' t ' • �• t �l f 1 �"w. . - . �. . ` �3 y f ; _. 1�,. �►l� � � �� _ �-. - ,r-- L .." ' ; � - .`' I" . - t� ' � , � ' 's � l , � �• •r'r a � _ v Js. e�t'- ' a' i 1 r ; �°� - .� � .` . � , ; . : i � - -,, ,, �, � � (� � � 1 � , � (1) � �s�.t la 4_.� ..� ��f�,a � 1 :� � , ; � ,., � : : l� � '�•_ ,.�..� C� � � • �- �; e �``• j :,;� � •'iOj� � � �-� -: � �� - - - - �- �� d"/ ",s `• _ �,. _M . �� f � /C�.I wi� �� ctl4)� -'�4 ! ) 04lf7 S�nc+' r ./ � ; 1 _-,�, . � 1 . . �.V a .� � --; �� f, �...�. ' � f-� �.� rl�� ;= �� Vacant Lot M � i�- ' , �...=' ;,:`V,;, : � � ��`' s , �. .,�� ;� r I . ti�� - . �O � ` � t .y t V ` �� i �`p Y -� ' ... � �,, 6755 East River Rd. . , r � ;. � M � • u ` � I/ , + s r� l�� , I ~ �' �� t � . a , y�µ� � a . � %� '• af; ' . S �' �` a �� w 't , �.ts . , i '•` , t � . `� � � � `: Y � '-- s ; .. � � • �.� - — �, h� < � a �q e�l �'•., ''�f - r •' ,�, � � �+ � � �� e� � .,...:,, s�"' -� , � . �° , � ��q h' � . . ( � •• , � . iQ ' ; . ' � .,. _ � � � .. '�.: , i� r� . � ... . , .�. M-:. •�►�.. _�, :� � r t~ f :.:V!'� I ir .�,., ........ .. , , - 3B - 0 � ;��1� ��c�� . �� =-�%��- CITY OF FRIDLEY HOUSING & REDEVELOPMENT AIITHORITY MEETING, MARCH 9, 1995 CALL TO ORDER• Chairperson Commers called the March 9, 1995, Housing and Redevelopment Authority meeting to order at 7:40 p.m. ROLL CALL- Members Present: Members Absent: Larry Commers, Virginia Schnabel, Duane Prairie Jim McFarland, John Meyer Others Present: Wi.1l.iam Burns, Executive Director Barbara Dacy, Community Development Director Jim Casserly, Financial Consultant Grant Fernelius, Housing Coordinator Craig Ellestad, Accountant Tom Stanek, 7035 Willow Lane Bert McElrath, Norway Pine Builders APPROVAL OF FEBRUARY 9, 1995. HOIISING AND REDEVELOPMENT AUTHORITY MINUTES• MoTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the February 9, 1995, Housing & Redevelopment Authority minutes as written. IIPON A VOICE VOTE, ALL VOTING AYE, C$AIRPERSON COMMERS DECLARED THE MOTION CARRIED IINANIMOIISLY. CONSENT AGENDA• 1. AUTHORiZE 1995 HOME FUND APPLICATION TO ANOKA COUNTY AND AUTHORIZE HRA MA.TCHING FUNDS 2. CONSIDER ACOUISITION OF THREE SCATTERED-SITE PROPERTIES: 6200 - 2nd Street 540 Hugo Street . 533 Janesville Street 3. CONSIDER APPROVAL OF RESOLUTION AND MEMORANDUM OF UNDERSTANDING WITH NORTHEAST STATE BANK TO PARTICIPATE IN MHFA/FRIDLEY HOME IMPROVEMENT PROGRAM t' 4. CONSIDER ACQUISITION OF ANOKA COUNTY PROPERTY AT 6765 EAST RIVER ROAD �?;� "'' "' � 5 . �IONTHLY HOUSING REPORT 3C HOUSING & REDEVELOPMENT AUTHORITY MEETING, MARCH 9� 1495 PAGE 2 � 6. REVENUE AND EXPENSES MOTION by Ms. Schnabel, seconded by Mr. Prairie, to authorize the 1995 Home Fund Application to Anoka County and authorize H�2A matching funds; to authorize the Executive Director to proceed with acquisition of three scattered site properties located at 6200 - 2nd Street, 540 Hugo Street, and 533 Janesville Street; to approve a Resolution Authorizing the Execution of a Memorandum of Understanding By and Between the Housing and Redevelopment Authority In and For the City of Fridley and the Northeast State Bank of Minneapolis; to authorize acquisition of Anoka County property located at 6765 East River Road; to receive the Monthly Housing Report; and to check register #25434 through #25464 as submitted. UPON A VOICE VOTE, AI,L VOTING AYE� CHAIR.PERSON CQMMERS DECLARED THE MOTION CARRIED IINANIMOIISLY. ACTiON STEMS• 7. CONSIDER AWARD OF BIDS FOR SCATTERED-SITE PROPERTIES Mr. Fernelius stated staff contacted 15 builders to solicit interest in bidding on the lots. Two parties submitted bids for f the properties. A summary of the bids was distributed. The two � bidders are Tollefson Homes and Norway Pine Builders. Mr. McElrath, Norway Pine Builders, has submitted some additional materials about the company. Staff's recommendation is for the HRA to authorize the sale of the lots located at 6409 East River Road, 8280 East River Road and 187 Longfellow Street to Tollefson Homes. Staff does not recommend that the bid be awarded for the last two properties. Staff makes this recommendation based upon the fact that Norway Pine Builders does not want to enter into a development contract as required. Norway Pine Builders is essentially offering a cash offer for the lots and would not enter into the development agreement or provide a letter of credit. They would be buying the properties and constructing homes on those lots_ The HRA would have essentiaily no means of insuring that homes are actually constructed. Therefore, staff is recommending awarding the bid to Tollefson Homes who would agree to enter into a development contract. Staff feeis the offer made for 677 Hugo Street and 539 and 547 Glencoe Street is not adequate. Mr. Commers asked why the�e were such low bids for 677 Hugo Street and 539 and 547 Glencoe Street. Mr. Fernelius stated he could not explain the rationale. Ms. Dacy stated Mr. Brad Dunham, on behalf of Tollefson Homes, (��'� called and stated the reason for the bids as they are is because 3D _ -_-- -- -� - - . 1 . i _ r.,. ,_. �11��T. ��t1F . E t =�% +�KS c64~► n } *��Nf9n�� r.... 1_, �i� :;..,�, ...:. ^ . .. ::._ ,.1 ,., ._ ; � � - - - - - - �� ., P�- r � CC�?UNTY C7� A�1�KA UJ�c� pf tlte Ciiunll� :�SSes3ar Government Center 2100 3rd Avenue, Anaka, Minnesota 55303-2281 612-323-5475 Fax:612-323-5421 MAX 23, 2995 r��o �ra : Mrx� KLLLY HTGHWAY RIGHT f�F'�AY FROi+�i: FA THURS'�OAT ANOIiA COUN'I'Y SSESSOR RE: PIN 15 30 24 7.2 Q067. LOT 4, BI,OCK 1, SCHERER RDDITIDN. GITY OF FRII7LEY ESTIMATED MARKET VALt7E AFTER RIGHT-QF-WAY TAKING. The current estimated market value vf th� above referenced unimpxaved real prpperty i� $6,800. The �stimated market value canclusion a�sumes that the property is unbuiidab3e and h.as no lega7. access to a pubiic street. zf you have any questians cancerning this �riatter, piease cali me at 323-5499. f�- �-,,. �-- �1 M�a� : � m� ��1� ��`g ta� �� a„d , c,� �� fr� l � n�t rn,-I ��. � .:-jr. < . . _.. Fme�l�vor r � � � DATE: TO: FROM: SUBJECT: Community Development Department HUUSING AND REDEVELOPMENT AUTHORITY City of Fridley July 13, 1995 William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator Consider Amendment�to Contract with Whitney Homes Whitney Homes closed on the purchase of the scattered site lots at 8280 and 6409 East River Rd. and 187 Longfellow St. on July 5, 1995. The builder is currently in the process of obtaining the necessary building permits from the City and plans to start construction next week. The deveiopment contract between the HRA and Whitney Homes specifies that they will have the home com leted and pay off the a�',�'.=r . .. - HRA's mortgage by August 14, 1995. •" '�°�'�"^ �?''°_� � --�`Tosing, the develot�er �s..__�.�uestinq an _extensian to Se�, _��. �(�.- _199_5� _. - ._ Recommendation Staff recommends that the HRA approve an amendment to the development contract with Whitney Homes which extends the completion date to September l0, 1995. GF/ � M-95-400 ORAFT 7-11-95 ADDENDIIM TO THE SALE & DEVELOPMENT AGREEMENT RELATING TO 8280 East River Road 6409 East River Road 187 Longfellow street BY AND BETAEEN T$E FRIDLEY HOIISING AND REDEVELOPMENT AUTHORTTY � 4�! 7 WHITNEY HOMES, INC. 4A THIS ADDENDIIM, is made and entered into this day of , 1995, by and between the Fridley Housing and Redevelopment Authority, (hereinafter called the "HRA"), and Whitney Homes, Inc. (hereinafter called the "Developer"); WHEREAS, the parties executed the original Sale and Development Agreement referenced above on , 1995; and AHEREAB, the parties have mutually agreed that the dates set forth in paragraphs 2.01 and 4.02 of the original Sale and Development Agreement shall be modified. NOW, THEREFORE, in the joint and mutual exercise of their powers and in consideration of the mutual covenants contained in the Sale and Development Agreement dated , 1995, and the provisions as set forth below, the parties hereto agree to amend said original agreement as follows: "2.01. Sale. The HRA agrees to sell the Property to Developer and the Developer agrees to purchase the Property from the HRA for the purchase price of $42,500.00. Developer will purchase the Property by Quit Claim Deed with a minimum down payment of $1,500.00. The balance of $41,000.00 will be carried on a purchase money mortgage (Exhibit B) at 5.0 �, which mortgage and interest will be due and payable no later than , 1995, at which time, if Developer is in full compliance with this agreement, Developer will be provided with a Warranty Deed and Satisfaction of Mortgage." "4.02 New Construction. Developer shall be solely responsible for the construction, marketing and sale of the single family homes on the Property by , 1995. The minimum selling price of said homes shall be $80,000.00." IN AITNESS WHEREOF, the HRA has caused this Agreement to be executed by its duly authorized officers; and the Developer has executed this Agreement the day and year first above written. i � FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY By: William W. Burns Its: Executive Director By: Lawrence R. Commers '� Its: Chairperson WHITNEY HOMES, INC. � Its: STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) On this day of , 1995, before me, a Notary Pubiic within and for said County, appeared to me personally known, who, being by me duly sworn, did say that he is William W. Burns named in the foregoing instrument, the Executive Director of the Fridley Housing and Redevelopment Authority, a body po3itic and corporate under the laws of the State of Minnesota, and that this instrument was signed as his free act and deed. Notary Public � 5TATE OF MiNNESOTA ) ) ss. COUNTY OF ANOKA ) On this day of , 1995, before me, a Notary Public within and for said County, appeared to me personally known, who, being by me duly sworn, did say that he is Lawrence R. Commers named in the foregoing instrument, the Chairperson of the Fridley Housing and Redevelopment Authority, a body politic and corporate under the laws of the State of Minnesota, and that this instrument was signed=as his free act and deed. Notary Public STATE OF MINNESOTA j ) ss. COUNTY OF ANOKA ) On this day of , 1995, before me, a Notary Public within and for said County, appeared to me personally known, who, being by me duly sworn, did say that he is named in the foregoinq instrument, the of Whitney Homes, Inc., a corporation under the laws of the State of Minnesota, on behalf of the corporation, and that this instrument was signed as his free act and deed. f:\munic�jdh�ih�edevk.amd 4D Notary Public , _ HRp► : CpNSENT ITEMS FOR � � CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, JIINE 8, 1995 CALL TO ORDER• Chairperson Commers called the June 8, 1995, Housing & Redevelopment Authority meeting to order at 7:38 p.m. ROLL CALL• Members Present: Members Absent: Larry Commers, Virginia Schnabel, Jim McFarland, Duane Prairie John Meyer Others Present: William Burns�, Exeeutive Director �. .�. . Barbara Dacy, Commuriit� Development Director� � Scott Hickok, Planning Coordinator � , Jim Casserly, Financial Consultant Grant Fernelius, Housing Coordinator Craig Ellestad, Accountant APPROVAL OF MAY 11 1995 HOUSING AND REDEVELOPMENT AUTHORITY MINUTES• MOTION by Ms. Schnabel, seconded by Mr. McFarland, to approve the May il, 1995, Housing and Redevelopment Authority minutes as written. OPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED IINANIMOIISLY. CONSENT AGENDA• 1. 2. 3. 4. APPROVE BILL OF SALE FOR REMOVAL OF GUNDERSON HOME AT 5707 WEST MOORE LAKE DRIVE N.E. MONTHLY HOUSING REPORT SOUTHWEST OUADRANT BUDGET EXPENSE REVENUE AND EXPENSES Mr. Ellestad provided copies of additional expenses to be approved with those previously submitted. MOTION by Mr. McFarland, seconded by Mr. Prairie, to approve the Bill of Sale for Removal of Gunderson home at 5707 West Moore Lake Drive N.E.; to approve the Monthly Housing Report; to approve the Southwest Quadrant Budget Expense; and to approve check register #25538 through #25576 plus the additional e�enses contai�ed in the memo of June 8, 1995, from Mr. Ellestad for a HOIISING & REDEVELOPMENT AIITHORITY MEETING, JUNE 8, 1995 PAGE 2 total of $16,671.21. IIPON A VOIC$ VOTE, ALL VOTING AY$, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED IINANIMOIISLY. ACTION ITEMS• 5. AWARD OF BIDS FOR.SOUTHWEST 4UADRANT DEMOLITION Ms. Dacy stated staff's recommendation is to award the demolition contract to Herbst and Son for $194,200 and to award the salvage contract to Bauer Wrecking and Salvage Company for $10,000. The two amounts combined give the.HRA the best price for the demolition and salvage of items in the redevelopment area. This is,the most cost efficient and is.be�ow the anticipated.budget. . In light bf the events of the..pot�ntial �awsuits'; �a _mot:�on to approve w6uld be subject to�execution of a settlement agreement.� Mr. Dacy sta�ed they have worked with the contractors before .on Rice Creek Plaza. They were very cooperative to work with. Staff expects their full cooperation. MOTION by Ms. Schnabel, seconded by Mr. McFarland, to award the demolition bid to Herbst and Son FOR $194,200 and to award the salvage bid to Bauer Wrecking and Salvage Company FOR $10,000 subject to the execution of a settlement agreement. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPER30N COMMERS DECLARED T8E MOTION CARRIED IINANIMOIISLY. 6. CONSIDER PURCHASE OF FRANK'S USED CAR PROPERTY Mr. Burns stated staff has been working on this for some time. The agreement arrived at would have the HRA paying $150,000 for the property under certain conditions. The most important is for the heirs to complete the cl�an up of the site and to provide a statement of closure from the PCA. He is insisting on that before closing on the property, and he has communicated this to the realtor representing the estate. The other part is to waive the right to relocation payments. There will be no separate payment for the fixtures. In purchasing the building, we are also purchasing the fixed assets. There is no separate fixed asset payment. The environmental portion is not that complicated. There are some tanks to be removed and the soil around the tanks will likely need to be excavated. There was likely some leaking or spilling. There is a well on site to be capped. Mr. Commers asked if the family would be eligible for assistance. HOUSING & REDEVELOPMENT AIITHORITY MEETING, JUNE 8,_1995 PAGE 3 Mr. Burns stated he believed the family would be eligible for petrol fund assistance on the tanks. He did not get a formal appraisal. They got a budget appraisal similar to what they qot for the Southwest Quadrant project. The appraiser indicated that he recognized.$154,000 as the top amount. The appraiser arrived at this by recognizing that we could face potential condemnation and relocation costs, clean up costs, and included the fixed assets. Based on that, he felt that $154,000 was the top value. Mr. Burns also had a�eparate�meeting with the City Attorney and appraiser on all the properties and identified.a negotiating strategy. The $150,000 level was supported by that meeting. This was reviewed with the City Council. Mr. Burns indicated they were at that time at $140,000 and the seller at $160,000.. He was encouraged by some of the Councilmembers to delay the process of acquiring the pro�erty.. There was no objection to that strategy. Based ori that, he�went ahead.� He��may have been able � to �do �better. He tliought they had a f�ir p�ice. �'he owriers are facing some of the costs associated with the clean�up. He believed this was fair for all. � Mr. Commers asked Mr. Burns to address the memo from Councilmember Billings dated June 8, 1995, regarding Frank's Used Cars. Mr. Burns stated Councilmember Billings is pointing out there was not a binding auction for the property earlier this spring. one bid on the property was for approximately $95,000. Mr. Burns believed that is what Councilmember Billings is referring to and wondering why we are offering more. One must recognize that the situation might be different for the private sector. However, if you consider the alternative to a negotiated settlement is condemnation, then this deal becomes acceptable in light of condemnation. Mr. Prairie stated he assumed there was information the bidders did not have. Would the buyer take responsibility for the clean up? There may be other things we cannot see. Mr. Burns stated he did not know the conditions placed on the buyer. There may be other things. The price we bid for Custom Mechanical was substantially higher than what we are offering for this property. That helped set a comparison for this property as well. The other source of advise was from Mr. Herrick who has a good knowledge of commercial real estate. He stated, if you buy commercial property along a major highway for $3.00 a foot, you have paid an acceptable price. He did acknowledge that $150,000 would be an expected purchase price. Mr. Prairie asked if the City Council was satisfied with this. HOIISING & REDEVELOPM$NT AIITHORITY MEETING, JIINE 8, 1995 PAGE 4 Mr. Burns stated he did not know why Councilmember Billings is not satisfied at this point. He has had opportunities to indicate his dissatisfaction. In the negotiating process, Mr. Burns reported where he was in the process. He puts together a weekly report of the City, Manager and the City Council reads it carefully. If there is an objection, he usually hears about it. In this instance, he did not hear any comments. Mr. Commers stated it,looks as if the issue is that the appraisal is less than $100,000, but with the condemnation costs it would be $150,000. � Mr. Burns stated the appraisal was.over $100,000 on the preliminary estimate. He recognizes that the tax assessor had �the property on.the bookS,for.$108,.000 to $11a,000. �He � �recognized we were going to pay the market price. They worked ' � � frbm there to �consider the avoidance items°and came'�p with� � � $154,000. � ' Ms. Schnabel stated she was curious about the estate being responsible for the environmental clean up. Is that something they will hire done? Mr. Burns stated they have to. Staff had a Phase I audit done for that property. Our consultant says they would have to hire a consultant approved by the PCA who will them take them through the Phase II, a remedial action plan and through the implementation plan to follow up. The MPCA will take the word of this consultant if the consultant agrees to give a clean bill of health and will issue a closure statement. They will not do it if the work is done without appropriate approval. He has told the estate the HRA will not take the property without a closure statement. Ms. Schnabel asked if the heirs are local. Mr. Burns stated the person he had spoken with lived near St. Cloud. He thought the other family members were local. Most of the negotiations have occurred between Mr. Burns and the realtor representing the owners. A closing date will be established when the work has been completed. Mr. McFarland asked what would be done with the property. Mr. Burns stated they would do the same as they did with the Custom Mechanical site. It will be cleared and converted for residential purposes. The property would be sold to a building contractor to build the type of housing the HRA would like to have built. HOUSING & REDEVELOPMENT AIITHORITY MEETING, JUNE 8. 1995 PAGE 5 Mr. McFarland stated the closure does not necessarily indicate the property is cleaned entirely. They have property that has been contaminated. As long as they do not break the surface, they will get a closure statement. If you do break ground, you will need to clean it up. Mr. Burns stated they did a Phase I to protect themselves. There are fuel tanks in the ground so the family will have to clean that up. The other items are minor such as asbestos which is above ground but we insist they take that out as well. If there are floor tiles as well, we may be willing to concede. Mr. Commers stated he would like to verify that the closure does remove us from any liability from the underground tank clean up. Mr. McFarlar�d stated the petrol funii will� not allow �the�ir �� liability to pass from the owner to.the buyer..� �If the petrol fund would�protect the sellers, that right would not pass to us as a buyer. Mr. Casserly stated, as a public authority, you are in a different position. You are not going to be a responsible party when you buy the property. The problem is, if you acquire it, it does not mean that it is saleable. You do not have direct liability. It would have to be cleaned up. There could be a significant difference if there is significant pollution. Ms. Schnabel stated that is why she asked about the heirs to the estate so the HRA does not get something that is not anticipated. Mr. Casserly stated the problem is finding someone who has the resources to clean it up. What is cammonly happening is that the properties are being forfeited to the state. Mr. Commers stated the HRA is not closing or paying any money until the property has been cleaned up and all problems solved. With that contingency, we are not going forward until it has been taken care of. Ms. Schnabel asked if the HRA was eligible for Superfund monies. Mr. Burns stated he thought they might if they owned property with oil contamination. It does not apply to all types of contamination. Ms. Schnabel stated, if the heirs were not able to carry this through and if we offer a lesser amount and applied for Superfund monies, would that be feasible. Mr. Prairie stated the buyer usually does not want to take that gamble. HOUSING & REDEVELOPMENT AUTHORITY ME$TING, JUNE 8, 2995 PAGE b Ms. Dacy stated, in the case of the Lake Pointe site, if you not aware of the contamination issue when buying, you take on a voluntary responsibility to resolve the problem and you can become eligible for petrol funds. Mr. Casserly stated the petrol fund�is a no fault program funded through the gas tax program and a unique program that works � extremely well. If you have petrol-based contamination problems, the fund supplies resources to do it. The fund can continue to replenish itself because it uses gas tax funds. Mr. Prairie stated there is no question about cleaning that area. They have talked about it for a number of years. Mr. Commers asked how the property was zoned. . Mr. Burns�stated the current zoning�is consider�d non-conFarming .��•. as a commercial use and it goes back to.residential when the � owners cease to exist. These are spot�zonings. �. Mr. McFarland stated he would assume that Leisch and Associates are qualified and they would give proper counsel. MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the acquisition of Frank's Used Cars at the price of $150,000 subject to the clean up of the property, receiving verification that the property has been cleaned, waiving the relocation benefits by the property owner, and the acquisition of fixed assets. IIPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED IINANIMOIISLY. INFORMATION ITEMS• 7. CONSIDER TIF ASSISTANCE FOR NORTHCO Mr. Burns stated, about four to six weeks ago, Mr. Zylla approached him with a proposal to consider providing tax increment financing for the construction of a storm sewer and for soil correction along 73rd Avenue. It occurred to him that the HRA is riding a bubble of considerable industrial and commercial development at this time, and this may be the time to consider the request. There has been a relaxation of the penalties on tax increment financing so it may be timely to work with Northco. Mr. Casserly has worked with Mr. Zylla to find out more about the project and identify how we might help. Mr. Casserly stated Mr. Zylla had indicated they have been pursuing several users. The one that is most likely they were not sure they could do with fall construction. The development is for winter or early spring. He would like to identify the HOUSING & REDEVELOPMENT AUTHORITY MEETING, JIINE 8, 1995 PAGE 7 costs, find out if the HRA would be amenable to some assistance, and try to put together a package. They are still trying to give us values and to better identify the costs. It is important that they are able to qualify this as a tax increment district and they must.meet the requirements. He thought he would be able to report more in July. Because of this site, they had a proposal before the HRA five years ago. They were trying to create a development district.: There was very little assistance that could be provided. It may be timely to look at it again and also find out, if we were to create a tax increment district, if we would be able to generate real assistance. Mr. Burns stated he would iike to know if the HRA would like staff to continue to work with them or is this something you do not want to do. : . _ . . . . . . . � �. . Mr. Conuners stated the HRA has a number of priorities and is having some economic issues that will cost the HRA a lot. If this is a nice project, he hate to leave it,�but then again he thought the HRA was better served to concentrate on what they were now doing. Mr. Burns stated he thought they were looking at a pay-as-you-go type of project which would be based on the revenue the project generates, and it will generate revenue for other projects. Mr. Casserly stated the taxes paid are substantial. There are some peculiarities with doing this type of project, but this is not a net cost to the HRA. Ms. Schnabel stated the HRA did not have enough information at this point to say yes or no. Mr. Commers stated the HRA could look at it, see where the HRA is, and see how it works out. Mr. Burns stated he did not foresee a lot of complications with this project. If they were asking for some variances, there might be opposition from the neighborhood. He did not think Northco was asking for any variances, and he did not think there would be complications. 8. UPDATE ON HOUSING REPLACEMENT LEGISLATION Mr. Fernelius stated the bill authorizing the pilot housing replacement program was signed into law. Next month, staff will be coming back to the IiRA and working with the City Council to formalize this program. There is an actual housing replacement program that staff needs to put together. Both the HRA and City Council need to adopt the program. Staff will be coming back in July or August with this program. HOIISING & REDEVELOPMENT AUTHORITY MEETING, JUNE 8, 1995 PAGE 8 Mr. Commers asked if they needed to be concerned about the Fair Housing Act. Mr. Casserly stated he had prepared a three-page program analysis based on the legisiation which he sent to Greene and Espel. They thought this was positive. The only time that there would be a problem is if the HRA is involved in condemnations. If the HRA operates on a voluntary basis, there should be no problem. If we stick to the criteria as laid out in the legislation which includes that the sites are to be vacant or substandard, there should not be a problem. He will work with staff to define this as part of the policy. Even if they have to enter into a condemnation, it will be part of the program established.. Mr.. Commers_stated, as.long as this has been recommended by legal counsel ancl they see no �problems, the� HRA wii-1 take a look at it.. �� Ms. Dacy stated a letter.from Mr. Czech was included in �Che � agenda packet for the HRA's information. . . Mr. Commers stated they also had received information on site at 1207 Gardena. Is assistance being at this point? Ms. Dacy stated the owner is pursuing a buyer. Mr. Commers asked if the two homes on Glencoe Street had been demolished. Mr. Fernelius stated the two homes had been taken down the day before the meeting. Mr. Commers asked the status of the execution of a development contract. Mr. Fernelius stated the development contract had been drafted, signed and ready to go. Mr. Commers asked what is going to happen with the excess liability insurance coverage. Ms. Dacy stated staff has asked Mr. Hunt to prepare some estimates. If the HRA wishes to pursue additional coverage, they will do so. Mr. Commers stated the problem is that he did not know that the HRA would feel comfortable knowing they have personal liability if there is a judgment over $600,000. That may put a damper on things. This does not address excess coverage on those kinds of cases that we are not limited to $600,000 under the statutes. If there would be a$1 mi2lion judgement and although the City's coverage is $600,000, there could be an excess judgement for HOUSING & REDEVELOPMENT AIITHORITY ME$TING, JUNE 8, 1995 PAG$ 9 $400,000. That is a concern. Ms. Dacy thought this information addressed that concern. Mr. Burns stated the question is whether we want to purchase the excess liability coverage. Mr. Commers stated the infarmation as provided says to him that the City in normal circumstances has limited liability to $600,000. If they want to, we can purchase non-waiver coverage which would give us excess coverage in those cases where the statutory limits do not apply. Where the statutory limits do apply, the City would not would not pay claims over $600,000 per occurrence. The issue is whether to pick up the non-waiver coverage_for anything over $600,000 in those cases where the $600,000 limit..does not apply;� In his�opinion, it seems that�the City should do something�to�make sure the HRA members do not have personal liability. There may�be a way the City can do that without the City buying the insurance, at least as far as the HRA is concerned. For example, perhaps the City could pass a resolution indemnifying the HRA if there is ever a judgement. Perhaps there is some�way the City's legal staff could look at that and see if there is an option. � Mr. McFarland stated he thought this had been done on the State level. There was a law passed within the last three years. Mr. Commers asked staff to look at that and see what it is. This is an issue that requires some solution. In looking at the information, he was not sure that $1 million in coverage was sufficient. Mr. Burns stated that is with $2 million in annual expenses. For 1995, the HRA's budget is higher. He will try to get more clarification. Mr. Casserly stated there is a completely different issue. The HRA should not be getting insurance that covers increased exposure. You only want to cover your exposure. The HRA may be responsible for things which the members are not. The members do not need to be covered for hundreds of thousands of dollars, but rather for those things you are exposed to. Mr. Commers stated they may have an insurable interest. If they have a$10 million pool that we are dealing and someone gets a$5 million judgement, they could take away from what the HRA is trying to do. Other than that, that is the HRA's interest. We have exposure of the officers and directors and that is what we want coverage for. It is possible that the members could be sued individually. The real issue is that members would have potential personal exposure. �., . HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 8, 1995 PAGE 10 Mr. Burns stated he thought the members were covered but he did not know to what limits. He will look at this further and report back. 9. CONSIDER INFORMATION REGARDING LAKE POINTE SITE Ms. Dacy stated she met with a representative Towle Real Estate on Tuesday. She put them in touch with a representative from MEPC. This is related to the HRA's goals for the site which is why staff is bringing this to the HRA's attention. Staff is still working with MEPC and Galbraith. Staff will be coming back in July on a proposal from MEPC and Galbraith. Mr. Burns stated Medtox Laboratories is very interested in the site. This.is one of two.or three Sites they are cansider�inq. � � If we �w�nt� them; we have a�reasonabl�e �chance. The prob�lem,�is that they want a two-story,�80,000 square foot buiTding with surface parking. They are looking to do that on seven acres. If you apply that density for the seven acres, to �he large parcel designated for office space, that is 250,000 square feet of density. We are looking for 500,000 square feet of density. Mr. Burns stated he would report the information and if the HRA wishes to pursue the project, staff would get back to them. Otherwise, he encouraged them to work with one of the two prospective developers for the site and consider leasing space. The representative seemed to be willing to do that. Mr. Commers stated this was fine at this point. They would see what happens. 10. CITY OWNERSHIP OF FOUR PLEX AT 380 - 57TH PLACE N.E. FOR TRANSITIONAL HOUSING Ms. Dacy stated this discussion has been going on since September. Originally, the HRA supported ACCAP's application to purchase, rehab and operate a four-plex for transitional housing services. During the funding cycle, the MHFA indicated the transitional housing program was filled. However, the MHFA put the application into another category of public ownership and provided funding. The good news is that ACCAP no longer needs financial assistance on this project from the HRA. They can fully fund the acquisition and rehabilitation. However, a public entity must own the building. Staff discussed the ownership issue with the City Council. The Council was concerned that County ownership may dictate the City becoming eligible for or responsible for paying a part of a levy by the County. Staff contacted the County about that, who stated ownership would not dictate that. The HRA and City Council would have to pass a resolution to request it. However, they did have a policy problem with the City asking the County to own it and then to ask HOIISING & REDEVELOPMENT AIITHORITY MEETING, JIINE 8, 1995 PAGE 11 that they not be reimbursed for expenses for performing services. A second issue raised was the affordable housing issues raised with the Southwest Quadrant redevelopment project. This project would convert four units into affordable housing. ACCAP is committed to this project, and they have guaranteed to take on the operating expenses, insurance costs, real estate taxes and, if there is a forced sale of the property before the expiration of the mortgage, they,are will.ing to pay the gap between what the property is selling for and the remainder of the mortgage. ACCAP wants to complete this project. Ms. Dacy stated a model is Blaine's Economic Development Authority's agreement with ACCAP for four homes for a battered women's program. The only difference in this case is that ACCAP . is guaranteeing to cover the gap in a forced sale situation. " Ms. Dacy stated staff warited to bring this�to the�attention af the HRA. This item is also scheduled for City Council discussion on Monday. The Counc�lmember for�this ward �aill recommend that the City strongly consider taking ownership. It makes sense that the HRA be the owner of the property given the housing function. There have been new pieces of information coming up in the last few months, and staff feels it prudent to bring this to your attention. Mr. Commers stated it is difficult to reaouunend without an opportunity to read over the information. Ms. Dacy stated there is no problem with having this item on the July agenda for a final determination. Mr. Commers asked staff to add this to the July agenda along with the City Council information. 11. PROPOSAL FROM REDEEMER LUTHERAN CHURCH Mr. Burns stated he had met with the pastor of Redeemer Lutheran Church and the chair of the Planning Commission. Redeemer is on Mississippi Street, is out of space and wants to expand. They now need space for overflow parking. Their plan is to purchase 19 properties in an area bounded by Mississippi, Ashton and 64th Way with the exception of the Spur station. Eventually, they want to move their complex to this area and face East River Road rather than Mississippi Street. Mr. Burns stated Redeemer is expanding rapidly. In the past, they have asked for room in the park and the neighborhood has been hostile.to that. The railroad tracks are an obstacle. 6409 East River Road is a vacant property that we have under contract for Whitney Homes. Redeemer wants the City to void that property. They consider this a key piece of property to acquire � HOUSING & REDEVELOPMENT AUTHORITY MEETING, JUNE 8, 1995 PAGE 12 and it will be much more expensive for them if there is a home there. There is no definite time frame. He tried to get an idea of how committed the church was to this proposal. The request appears to be from two individuals.who came in to see him. He did not think there had been a membership vote. Mr. Burns is bringing this before the HRA. There are two sides. The church emphasizes values and supports youth. This church has a lot to offer. It is'a good community asset. On the other hand, buying 19 parcels is also taking away property taxes. You may also conclude that this wou�ld take away affordable housing. The parishioners are planning to go to property owners and purchase one parcel at a time. The question is whether or not the congregation wants to do this right now. He thought they had talked to Whitney directly.. .. . � Mr. Coinmers asked if the�issue is that, if�.Whitney Homes is willing to sell to the churcri, will we void�the contact. Mr. Burns stated he was not sure what mechanism they wouid use to settle the matter. Staff is asking the HRA if you want to consider approaching Whitney. Are we willing to let Whitney ont of a development contract? Ms. Schnabel asked, if we do that and the church fails to proceed, then they are stuck with a vacant tax exempt property. Mr. Prairie stated this seemed like a lot of property. DHow many acres does the church have now? Mr. Burns stated he estimated they would have four acres. It is not a large parcel. They did come in earlier and talked about adding a second fioor to the education building and wanted to expand the parking. We talked about different alternatives. Mr. Fernelius stated the proposed parcel is part of the scattered site program which we would include in our housing replacement program and could potentially recoup some of the expenses. Another issue is the developer is in the process of marketing this property. Our agreement goes through the end of October. when the home is to be completed. He suggested they wait and see if the property is marketable first, and then consider doing something with the church at that time since their plans are so preliminary at this point. Mr. Commers stated the real issue is whether we would place that development of a home as a priority if in fact they really are going to expand. Mr. Prairie stated they have no drawings, but that could change. The idea could even be voted down. � , HOIISING & REDEVELOPMENT AUTHORITY MEETING, JIINE 8, 1995 PAGE 13 Mr. Burns stated it may be a logical step to regard getting a show of support from the congregation or some sort of a plan. Mr. Dacy stated, at the last meeting, they discussed 1207 Gardena which is similar in that a person from the neighborhood came forward asking the HRA to purchase a property so the neighborhood could buy it. The discussion indicated the intent is to purchase and build on the property. These are similar because it is a neighborhood property�owner who wants to clear land for something other than its intended use. Mr. Burns stated it would be difficult to ask them to request a show of support. Ms. Schnabel stated it seems the church is not prepared at this. point.to perceive what they want as a project. She thought they in some ways take their chances. If they go through their plan as they see it, buy the properties, they will just have to face that chance and buy this property�if it has been already developed. She did not think the HRA should make special accommodations for something that is so preliminary at this point. She thought the HRA has a plan in place and that they should proceed. Mr. Prairie stated the church should be able to assure the HRA that there is at least a 50/50 chance of this happening. 12. UPDATE ON SOUTHWEST QUADRANT Mr. Commers stated the public portion of the meeting is temporarily adjourned to receive an update regarding the Southwest Quadrant and will be conducting a closed meeting with respect to the information that shall be provided. ADJOURNMENT• MOTION by Ms. Schnabel, seconded by Mr. Prairie, to adjourn the meeting. OPON A VOICE VOTE, ALL VOTING AYE, CHAIRPI3RSON COMMERS DECLARED THE MOTION CARRIED AND THE JIINE 8, 1995, HOUSING AND REDEVELOPMENT AIITHORITY MEETING ADJOIIRNED AT 9:34 P.M. Respectfully submitted, `�'�, ° , ' � � Lavonn Cooper Recordinq Secretary � _ � I DATE: TO: FROM: Community Development Department HOUSING AND REDEVELOPMENT AUTHORiTY City of Fridley July 13, 1995 William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Consider Service Contract with Anoka County Community Action Frogram (ACCAP) for Administration of the ��£��n-�°�? �hl��'��=-_ �ehabilitation Progra�- �.,�,,..�,.w,...�., �._.�...,��,�,��,�, Since 1993, the City and HRA have used both CDBG and HOME funds to provide grants to low-income homeowners for improving their homes. Due to the tremendous amount of time and staffing required, we have contracted with ACCAP to help administer the program. _ __,,. As in previous years the City will -- �a��l�tions and ,�,�:��,j�y.,,�,.1;�„Q�e whQ._.�are el�cta�a�.� .fQr . fi,.��,�� .�� CAP will _ provid� in$p��,o�: �e�r�ces, work. _wr�te-ups, he p- e. estimates and sele�t:,aa,contraetor,:- ,��e,m_ a�ct_�conciuct_ inspectiQrrs,� AccaY nas a _ . _. . __. ter its portion of the program f��'�'� �'�-'�'�-s This year, the HRA received $75,000 in HOME funds and must provide a 25� match or $18,750. Up to 5� of the entire budget or $4,688 can be used for administration purposes. This leaves a balance of $5,625 which must be paid separately by the HRA. We would like to point out that this expense was included in the 1995 budget. As a final note, these funds will only be used in the Hyde Park neighborhood. Recommendation Staff recommends that the HRA approve the Service Contract with ACCAP to administer the housing rehabilitation program for a total cost not to exceed $10,313. GF/ M-95-401 I • ^ ``` Equal Opportunity Employe� `'' 1995 HOME Funds SERVlCE CONTRACT between ANOKA COUNTY COMMUNITI( ACTION PROGRAM, lNC. and FRIDLEY HOUSlNG AND REDEVELOPMENT AUTHORITY THIS AGREEMENT, made this day oi . 1995, tfie date of the sig�atures of the arties herei� notwittistandin b�t�-betwe�n the'Housin and Redevelo ment Authorit �n`and for '� ` ._ _ P 9; Y 9 P Y'� the City of Fridley, a public body corporate and politic under the laws of the State of Minnesota (the "Authority'�, and the Anoka County Community Action Program, incorporated, a 501(c)(3) non-pro%t corporation, with its offices at 1201 - 89th Avenue N.E., Blai�e, Minnesota 55434 (the "Contractor"j. . � . � WITNESSETH THAT: ° � � � WHEREAS, The HOME Investments Partnerships Act (the HOME lnvestment Partnerships Program) provides assistance to state and bcal govemments to strengthen publ'�c-private partnerships to provide more affordable housing; and WHEREAS, the Authority has submitted an application for the HOME lnvestment Partnerships Program to Anoka County; and WHEREAS, said application has �eceived preliminary approval from Anoka County and is curre�tly pendi�g approval by the United States Departmerrt of Housing and Urban Devetopment for the expenditure of funds to deliver the Fridley Home Improvement Grant Program (the 'Program'�; and WHEREAS, the Contractor has ag�eed to jointly administer said Program for the Authority, which proposal has been accepted by the Authority. NOW, THEREFORE, in consideration of the mutua) covenants contained herein, the pa�ties agree as follows: 1. TERM The project to be accomplished by the Contractor hereunder shall run from 1995 to . 1996, unless earlier te�minated as provided herein, or urrtil all obligations set fo�th in this agreement have been satisfactorily fulfilled, whichever occurs first. 1 of 11 5A . 2. SERVICES TO BE PROVIDED 2of11 A. The Contractor shall provide the followi�g services to administer the Program: !3 (1) �2) Ve�ify property title records, prepare repayme� agreements for signature by Prograrn recipients, and insure said cepayment agreements are properly , recorded with Anoka County. � Coordinate and conduct inspections of properties to be improved under the Program and prepare bid specifications for work to be performed. (3) Assist Program recipients in obtaining estimates for the work to be performed. � :in addition, provide the Program recipient with the options avaitable in selecting contractors. (4) (5) (6) Meet with Program recipients to review estimades and select a contractor per the Program requirements. Insure that the successful contractor complies with the applicable HUD and County regulations. Monito� perfortnance of rehabilitation work and assist Program recipient in �esohring disputes with contractors, as necessary. (� Conduct interim and final inspections and prepare the necessary docume�ts to process payment to the contractor. Said documents shall be routed through the Authority's Housing Coordinator for approval prior to submission to Anoka County for processing_ 1n addition to the processing steps outlined above, the Contracto� shall provide the following senrices: (1) Compile and maintain 1'�sts of participating construction contractors. �2) (3) Comply with the Housi�g Rehabilitation Procedures Guide, as amended from time to time. Provide the Authority of Fridley with monthly �eports on the status of program applications. � (4) Make payments to contractors on a timely basis, in compliance with ihe Fede�al '�hres-day rule'. (5) Acquire mechanic's liens from all contractors, subcont�actors, and materia! suppliers, prior to release of any payments. � C. � In addition, the Contractor shaA proceed with the administration of the Program as ` ' 'cantained ii� 3he P'rdgrani Budget, attach� as F�hibit A and made a part oi'this " contract by reference, representing Contractors minimum responsibilities to the extent that said proposals have not been accomplished prior to the date of this Contract as entered into and to the extent said proposals do not contradict the standards and requirements referred to above. 3 of 11 D. It shall be the responsibility of the Contractor to meet all standards and satisfy all requirements expressed in Tdle 1 of the Housing and Community Oevelopment Act of 1974 as amended and the HUD Imptementary Regulations at 24 CFR, Part 570, and any other applicable federal statutes, rules, or regulatio�s esfablished now or he�eaiter, and any applicable statutes, n.iles, regulations, or guidetines established now or hereafter by the State of Minnesota or any of its agencies. Should it appear to the Contractor at any time during the course of implementing said project, that the work to be done has not been explained or described in sufficient detail, or with sufficient clarity, or should it appear that any plan, proposal, or ott�er materia! conilict with any standards or requirements imposed by statute, regulatan, or HUD, the Contractor shall promptly apply to the Authorit�s Housing Coordinator o� other d�.signated representative. In no event shall the Contractor proceed with administration of said project in uncertainty. The Contractor shal! comply with the following requirements and standards of OMB Circular No. A 122, "Cost Principles for Non Profit Organizations" or OMB Circular No. A-21, "Cost Principles for Educational Institutions", as applicable, and with the following Attachments to OMB Circular No. A 110: (1) Attachment A, "Cash Depositories', except for paragraph 4 conceming deposit insurance; (2) Attachment B, "Bonding and Insurance"; (3) Attachment C, "Retention and Custodial Requirements fo� Records", except fhat in lieu of the provisions of parag�aph 4, the retention period for records pe�taining to indiv�dual CDBG activities starts from the date of submission of the annua) performance and evaluation �eport, as prescribed in 570.507, in which the specific activity is �eported on for the final time; 5C 4 ) (4) Atiachment F, "Standards for Fnancial Management Systems"; (5) Attachment H, 'Monitoring and Reporting Program Performance", paragraph 2; (6) Attachment N, "Property Management Standards", except for paragraph 3 conceming the standards for real property, and except that paragraphs 6 and 7 are so mod'rfied so that (i) ln ali cases in whicfi personal property is so{d, the proceeds sha11 be program income, and (ii) Personal property not needed by the subrecipient for CDBG activities shall be transfeRed to the� recipient for the CDBG prograrn or sfiall be retained after compensating the recipient; and (7) Attachment O, 'Procurement Standards". 3. PROJECT METHODQLOGY AND PROCEDURE The Contractor, in providing the services described in Section 2 of this Contract, shall empby methods and procedures that are deemed to be appraptiate, reliable, and psofessiona! by 'tndividuals, frms, and associations �egularly engaged in worfc of a similar nature. The methods and procedures empbye� shall include those required by the sources of authority spec�ed in Section 2, herein, but shall not necessarily be limited to such methods and procedures. 4. PROJECT EVALUATtON AND ACCEPTANCE In order that the Authority may be kept informed of the Contractors progress and properiy evatuate the success of the Contractor in achieving the Contract goals, the Authority may make suggestions, criticisms, and recommendations to the Contracfo� and the Contracto� shal! on a monthly basis and at other times upon request by the Authority, send a written progress report to the Authority's Housing Coordinator. Said report shall a) sumrnarize the activities and progress of the Contractor to date, b) detail special problems or difficuhies that have arisen during the course of the project which need to be brought to the attention of the Authority and c) summarize any other information, problems, or proposals which the Author'rty needs to know in order to properly evaluate the actions of the Contracto� in working towards the Contract goal. The Contractor shalt tho�oughly and co�scientiously implement the proposals, recommendations, and criticisms of the Authority or its designated representative, in writing, before proceeding further with the imptementation of the prog�am so that the goals of this Contract may be met to the satisfaction of the Authority. 4 of 1 '1 5D Any deviations from the goals, siandards, and requirements of the project as deiermined by said designated representatives of the Authority shall be corrected by the Contracto� before proceeding further with the implementation of said project. 5. PROJECT ADMINISTRATI4N. PERSONNE� AND RECORDS A. The Contractor shaii engage in the implementation of the Program, such individuals as � are necessary`fo� rt�'proper completion. The Contractor warrants and represerits th�t " ' all of its empbyees.shall be prope�iy trained, competent and qualified to perform the tasks assigned to them. The Contracto� shall provide the Authority with such information regarding the qualifications of said individuals as required by the Authority to verify that present and subsequent services are being rendered by competent and frained people., Ap individuals engaged by'the Cor�tractor to perforni � � services under this Contract must �eceive express approval of the Authority before commencing any se�vices under the Contract. Any or all of said individuals may be regular employees of the Contractor or may be specifically empbyed by the Contractor as independent contractors to work on the implementation of said project. Howeve�, the Contractor shall �ot subcontract with any other firms, associations, consulting agencies, or other organizations for the impiementation of the Program, without the expressed written approval of the Authority. B. The Co�tractar shall maintai� records on all individuals empbyed by ft in the implemerrtata� of the Program. Said records shall show the name and quaGfications oi each such individual, the hourly rate of pay for each such individual, and the number of hours worked by each such individual, and the days on which such hours were worked. The Contractor shal! also maintain, and complete in correct form, all other records required by the n.iles, regulations, or guidelines of HUD or by Tdle 1 of the Housing and Community Development Act of 1974 as amended and the HUD Imple- mentary Regulations at 24 CFR, Part 570. The Contractor further agrees to maintain aB such �equired records for three years after receipt of finaf payment or unti! aq othe� pending matters are cbsed. 6. DATA PRIVACY All data collected, created, received, maintained, o� disseminated, or used for any purposes in the course of the Contractor performance of this Agreement is governed by the Minnesota Govemment Data Praciices Act, Minnesota Statutes 1984, Section 13.Ot et. seq. or any other appticable State statutes and any State rules adopted to implement the Act, as wel! as State statutes and Federal regulations on data privacy. The Contractar agrees to abide by these statutes. rules, and regulations and as they may be amended. 5 of 11 ' 5E 7. NONDISCRIMINATION A. General The Contractor shall comply with all federai, state, and local laws prohbiting discrimination on the basis of age, sex; marital status, race, creed, color, national origin, sexual orientation, or. the presence of any sensory; mental, or physical handicap or any other basis now or hereafter � prohibited by l:�w' :These ieqtiirements �e specified in Section 109 of the H6using and ;' Community Development Act of 1974; Civil Ftights Act of 1964, Tdle VI; Civil Rights A�ct of 1968, Tttle VIII; Executive Order 11063; Executive Order 11246; Section 3 of the Housing and Urban Development Act of 1968; and Minnesota Statutes Chapter 363. Speci�cally, the Contracto� is prohibited from taking any discriminatory actions defined in the HUD F%yulations at 24 CFR . 570.602(b) (1-3) and shaN take such �miative and corrective actions as are requi�ed by the ' Regulations at CFR 570.602(b)(4). 6 of 11 B. Proqram Benefit The Contractor shall not discriminate against any resident or Program recipie� by denying benefit from or participation in any block grant funded activity on the basis of race, cobr, sex, or national origin. (Civil Rights Act of 1964, Tdle Vl; Civil Rights Act of 1968, Tdle VII; Section 109, Housing and Community Development A�ct of 1974). C. Fair Housinq The Contractor shall take necessary and appropriate actions to prevent discrimination on the basis of Minnesota State law or federa! law in federally assisted housing and lending practices related to loans insured or guaranteed by the federal government. (Civil Ftights A�ct of 1968, Title Vll; Executive Order 11063; Minnesota Statutes Chapter 363j. D. Emplovment 1. In all solicitations under this Agreement, the Contractor shall state that all qual'rfied applicants will be considered for employment. The words "equal opportunity empbyer" in advertisements shatl constdute compliance with this section. 2. The Contractor shall not discriminate against an employee or appGcant for employment in connection with this Agreeme�t because of age, marita! status, race, creed, colo�, national origin, sexual orientation, or the presence of any 5F 7 of 11 sensory, mental, or physicai fiandicap, except when there is a bona fide occupational limitation. Such action shall include, but not be limited to the following: Employment, upgrading, demotion or iransfer, recruitment or �ecruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training. (Executive Order 11246 as amended and Minnesota Statutes Chapter 363.) 3. To the gre�tesi extent feasible; the ContractoF shalt provide training and eropbyment opportunities for lower income residents within the area served by block grant assisted projects (Section 3, Housing and Community Devebpment Act of 1968, as amended). E. Contrac�ors and Suppliers � No contractor, subcontractor, union, or vendor engaged in any activity under this Agreement shall discriminate in the sale of materials, equipment, or labor on the basis of age, sex, marital status, race, creed, cobr, natwnal origin, sexual orientation, or the presence of any sensory, mental, or physical handicap. Such practices include upgrading, demotion, recruiting, transfer, layoff, termination, pay rate, and advertisement for employment. (Executive Order 11246 as amended and Minnesota Statutes Chapte� 363). 2. Ali firms and organizations descnbed above shall be required to submit to the Agency certificates of compliance demonstrati�g that they have, in fact, complied with the foregoing provisions; provided, that certificates of compliance shall not be required from firms and organizations on contracts and/o� yearly sales of less than $10,000. 3. To the greatest extent feasible, the Contractor shall purchase supplies and services for activities under this ag�eement from ve�►dors arxi cont�actors whose businesses are located in the area seroed by block grant funded activiiies or owned in substantia! part by project area residents. (Section 3, Housing and Community Devebpment Act of 1968, as ame�ded.) F. Notice 1. The Contractor shall include the provisions of the appropriate subsections A, B, C, D, and E of this section in every contract or purchase order for goods and services under this Agreement and sha11 send to each labor union or representative of workers w+th which it has a collective bargaining agreeme�t or other contract o� understanding a notice advising the said labor unio� or worfce�'s representafive of the commitments made in these subsectwns. 5G 2. i� advertising for empbyees, goods, or services for activities under this Agreement, the Contracto� shall utilize minority publications in addition to publ'ications of generat circulation. 8. EARLY TERMlNATION This Agreement may be terminated by the Authority at any time, with or witho�it cause, upon 30 days .. written notice, delivered by mail or in person, to the Contractor. This Agreement may be terrninated by the Authority immediately upon the receipt by the Authority of notice of the bss of federal fundi�g for the Community Development Bbck Grant Program (CDBG). Fo� purposes of giving notices he�eunder, the address of the Contractor is 1201 - 89th Avenue N.E, Blaine, MN 55434. Upon termination, the Contractor shall be entitled to receive as compensation, payment for work actually performed to.the dafe of termination . as determined by the schedule of payment refened to in Section 10 {Compensation). 9. DEFAULT AND REMEDY A. Any of the folbwing constitutes a defautt on the part of the Contractor (1) Failure to p�oceed vvith the implementation of the Program at a pace �easonably calculated to implement such program within the time limits stated herein; (2) Failure to conscienfwusly abide by the directions of the Authority. (3) Failure to abide by any other term or condition of this Contract. B. ln the event of default, the Authority shall have the option of terminating this Contract upon written notice of termination sent to the Contractor at its address written above. Termination sha11 be effective immediately upon receipt of notice of tennination by the Contractor, or at such later dafe as the written notice shall stafe. Upon lermination, the Authoriry may recover from the Contractor any and all damages directly or consequently arising out of the breach of this contract or failure to perform the same by the Contractor. 10. COMPENSATION As complete compensation for the services to be performed hereunde� by ihe Contrdctor, the Contractor apply for �eimbursement of administration expenses directly f�om Anoka County, but only after receiving written app�oval irom the Authority authorizing said reimbursement. 8 of 11 5H !n �o eve�t shali the total payment exceed ihe sum of the administ�ative fee column in Exhibit A. The Contracto� agrees that all compensation received wil! be used to compensate the Contractor only for costs incurred in providing necessary services hereunder, and fo� no other purposes. My compensation rece'�ved by the Contractor in excess of said necessary costs shall be promptly refunded to the Authority upon termination of this contract or upon demand by the Authority. 11. INDEPENDENT CONTRACTOR The relationship of the Co�tractor to the Authority is that of an independent contractor. Nothing in this Contract shall be construed so as to deem any empbyee or agent of the Contractor an empbyee of the Authority for any purpose. . 12. GOODS AND SERVICES NOT PROVIDED F�R No claim for goods or services fumished by the CoMractor not provided for by the terms of this Contract, or by duly authorized alterations or modii'�catio�s of this Contract, will be hono�ed by the Authority. 13. CHANGES IN THE CONTRACT The Authority shall notify the Contractor in writing at feast five days before any change in this Contract is to take effect. 14. ASSIGNMENTS AND SUBCONTRACTING 9of11 A. The Contractor shaH not assign any po�tion of this Agreement without the written consent of the Authority, and it is further agreed that said consent must be sought by the Contractor not less than thiriv (30) days prior to the date of any proposed assignment. B. Any work o� services assigned o� subcont�acted hereunder shall be subject to eacfi provision of this Agreement and proper bidding procedures contained therein. The Contracto� agrees that it is as fully responsible to the Authority for the acts and omissions of its subcontractors and of their employees and agents, as it is for the acts a�d omissions of its own empbyee.s and agents. 51 1 S. INDEMNIFICATION The Co�tractor ag�ees to indemnify, defend, and hoid harmless the Authority (including its Council members, officers, and empbyees) from aU claims, bsses, or damages which they, or any of them shall be legally obligated to pay as a co�sequence of any negligent act or om'ission, any intentional tort, or any violation of the terms of this agreement, by the Contractor (including its officers, Emptoyees, and agents) in the performance of its services that are the subject of this agreement: 16. REVERSION OF ASSETS Upon the expiration or termination of this agreement, the Contractor shall transfer to the Authority any CDBG funds on hand or in the accounts �eceivable attributable to the use of CDBG funds. In addition, at the expiration or termination of this agreement, any real property under ttie Contractors control tliat was acquired or improved in whole or in part with CDBG funds in excess of $25,000.00 shall be disposed of in a manner which results in the age�cy being reimbursed in the amount of the curre�t fair market value of the property less any portion thereof attributable to the expenditures of non-CDBG funds for acquisition of, or improveme�t to, the real property. Such reimburseme�t shall not be required if the conditions of 24 CFR State Statute 570.503(b)(8)(� are met and satisfied. 17. DISPOSITION OF PROGRAM INCOME Upon the expiration or termi�ation of this agreement, program income shall be returned by the Contractor to the Authority. 18. INSURANCE The Contractor shall comply with the following insurance requirements: 10 of 11 A. Public liability Insu�ance The Contractor shall obtain and maintain continuously duri�g the term of this agreeme�t general liability insurance of an amount not less than One Million and no/100 ($1,000,000.00) Dollars which covers bodily injury and p�operty damage and an umbrella excess liability policy of Three Million and r►o/100 ($3,000,000.00) Dollars and provide proof of Workers Compensation Insurance pursuant to the Statutes of the State of Minnesota. The general liability insurance policy and umb�ella excess liability policy shall name the Authority as an additional insured. 5J B. Proof of Insurance The Contractor shall provide ce�tificates of insurance required unde� this section, or, upon request of the Authority, dupl'icates of the policies as evidence of the i�surance protection afforded. Such insurance policies shall not be reduced o� cancelled without sixty (60) days prior written notice to the Authority. 19: ENTIRE AGREEMENT/REQUIREMENT OF A WRITING it is understood and agreed that the entire agreement of the parties is contained herein and that this Contract supersedes all oral agreements and negotiafions between the pa�ties relating to the subject matter hereof as well as any previous Contract presently in effect between the Autho�tty and the Co�tractor relating to the subject matter hereof. Any alterations, variations, modifications, or waivers of � the provisions of this Contract shall be valid only when they have been reduced to writing and duly signed by the pa�ties. 20. EXHIBITS The following attachments listed below are hereby incorporated in this agreeme�t and made a pa�t hereof: Exhibit A - Program Budget Exhibit B - Certification Exhibit C- 24 CFR 85; Corrtracting with smatl and minority finns, women's business enterprise, and labor surplus area firms. IN WITNESS WHEREOF, the parties here hereunder set their hands as of the date written below: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY By Date: By Date: 1 i of 11 ANOKA COUNTY COMMUNITY ACTION PROGRAM, INC. By — Date: Bv - Date: 5K n EXHIBIT A - PROGRAM BUDGET Source 1995 HOME A1location � � HRA Funds Uses I. Administraiion HOME Funds HRA Funds II. Home Improvement Grants HOME Funds HRA Funds 5L - Amount $75,000 $24,375 Tota/ Sources $99,375 Sub-Total Sub-Total Tota/ Uses $3,750 $6,563 10 313 $71,250 $17,812 89 062 $99,375 Exhibit B CERTIFICATION The Undersigned, on behalf o( the Agency, ce�tifies, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or wiil be paid, by or on Uehalf of the undersigned, to any.person for �nfluencing or attempfing to influence an officer or employee of any agency, a MembPr of Cong�ess, an o�cer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federai contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative ag�eement, and the extension, co�tinuati�n, renewal, amendment, or modification of any Federal contract, grant, ioan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempfing to influence an o�cer or employee of any agency, a Member of Congress, an o�cer or employee of Congress, or an employee of a Member of C�ngress in connection with this �ede�al contract, grant, loan, or coope�ative agreement, the undersigned shal! compleie and submit Standard Form -LLL, �"Oisclosure Form to Repo�t Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreeme�is) and that a(I subrecipienfs shal( certify and disclose accordingly. • This certifcation is a ma#eria! represeniation oi fact upon which �eliance was placed �vhen ttiis transaction was made or entered into. Submission of this certification is a prerequisite ior making or entering into this transaction imposed by section 1332, tifle 31, U.S_ Code. Any person �vh� fails to file the required certification shall be subject to a civil penalty of no# less th�n S10,OOJ anu not more than St00,003 1or each such failure. AGENCY BY= Its: Date: By: Its: Date: 5M {24 CFR 85) Administrative Requirements for Gra�is and Cooperative Agreements to State, Locai & Federally Recognized indian Tribal Gover�ments {e� (,on[roC:�ng w��n Smol/ and minrri:y�irms. women's business enre: prise vnd /nbor s�rplus oreo fir.-s_ (�j The grzntee and subgrante� will take al! r•eces- �.y affir.r.ative steps to assLre ihat minozty Grms. women's business enterprises. and labor surplus area tir�s are used when possible_ . (?J AfFir.:�ative steps snal! include: (iJ Placing qualiGed small and minority businesses and women's business er,te:-p:ises on solicitation lists: (iij Ass:::ing ihat small and minority businesses. and wor.ien's busiaess enterprises are soiicited wnenever tney arP poten:ial socrces: (iii) Di�•iding total requireraents: wien economicatiy feasible. into smaller tasics c: qcan:ities to permit maximun pzr:icipat:�n by smali and r..inoritt• evs:�ess. zac� wo :�er.'s besin_<ss e.:cerp:ises: (iti•j �s:zolis�:iag d�!ivsr_.• sc'r,�cules. �-h�r� t�e :ea::i:�:r.� :: pe_:-i;s. K :i�: e�co�:ast� �a::i�ipat:c : b}• s-al. a :c n:norit�• besiness. a^c u•o: :en's - ', 5�s��ess e .te.�, rses: i (r? L's:�� tne se:z•:ces 2n� essista,-.;.e oi ;ae 5:-a:: 3�siness remi��suzt�o:. � er� t�� :::�:itc• ��s:�ess Deveiopr.:e-: ; �,g°-;•��• o_' .^e DeYa=---. _ c< Co-:..._: ___ ; c{rij Re��i-i�e t^e .-- ^:e con:rac:e:. :_ i .. � s��cort:a=ts a:e :c oe,l�:_ tc t�xe i: � { ai:i: :�ati�•e ste?s listec� in pa:s�ra�^s I (e1f?1 f;l tr:ro�,': �t•i ei this se�tior.. 5N Exhibit C C1 � b+ O� N i� r. a o �, ,� 0�4 0 M � � l� ,� -ri O 7 '� O � � � � a� E � � �..i � � .� �, � O x N � � O N '� '� a O � � +� �d � . � � N G1 C7 0 -� W iT iT � � � :. � � � � r+�+� xoaw x � � O • t�d Ul � � � rt H�ro .-.a o • ir N C] O N N 7r E-� f•l� O� U -� rt7 � �� 1� v� N +� � � x N .� �. k ` -� �A di � ln '� �p M +�or G�+ H�l N N O � � O f'7 � .�C N •1-1 • Vi � i. i? �� . � v} x o�� i--I N i�i � •�� o � � �O � N aP � � .� a � COi • -� O a.a N td � .f� 'd �Ncd� N � N 7r � -�i -rl O � ONw� O � .� A+ � .sG m � +�ioww -� �d t.� c� o � W H 1� rl �'d U E O �"� N N il?� 't3 x ,"� •.• R, o -�w v�i o a � x c=. o � +� � � � �. a� N O H -� <"� O N � U a � va s N N �-I C'. 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JUNE 1985 ADMINISTRATIVE BII.LING: :. ADMINISTRATIVE PERSONAL SERVICES ADMINISTRATIVE OVERHEAD COMPUTER OVERHEAD (For Micro & Mini computers) TOTAL ADMINISTRATIVE BILLING : OPERATING EXPENSES: POSTAGE BY PHONE — POSTAGE POSTAGE BY PHONE — POSTAGE POSTMASTER — POSTAGE, PERMIT #2886 AT&7 — LONG DISTANCE US WEST — TELEPHONE SERVICE AMERICAN EXPRESS — LUNCH BENEFITS EXPENSES: CITY OF FRIDI.EY — HEALTH INS ClTY OF FRIDLEY — DENTAL INS CiTY OF FRIDLEY — LIFE 1NS Account #'s for Account #'s for HRA's Use City's Use 14.967.25 101-0000-341-1200 267.83 101-0000-336-3000 194.42 101-0000-336-3000 460-0000-430-4107 262-0000-430-4332 460-0000-430-4332 460-0000-430-4332 460-0000-430-4332 460-0000-430-4332 460-0000-430-4337 TOTAL OPERATING EXPENSES : 262-0000-219-1001 262-0000-219-1100 262-0000-219-1200 TOTAL BENEFITS EXPENSES : TOTAL EXPENDITURES — JUNE 1995 File : \123DATAUiRA\nF�BILUNG.wM Oataiis � 15.429.50 13.54 236-0000-336-30�0 12.55 236-0000-336-3000 1,060.46 236-0000-336-3000 4.15 236-0000-336-3000 13.29 236-0000-336-3000 44.33 236-0000-336-3000 1 14�8.32 0.00 236-0000-219-1001 41.06 236-0000-219-1100 0.00 236-0000-219-1200 41.06 __ ....... _... i:$1G:6118:�8: � u� �o o� � �o 0 w � c� g w a•-•m a oe f w� a z � � z� �o �a zw �� U a H (J � H t� c a a � � U H a o Q w r U N w w OC J J y W a U F 2 W f a O � J �1 W CO W a-- p W � � O Z 1!1 Q a \ C7 00�2 \�N � f � tJ S 0 W i Y CC Q W a�o W O � o[ oc oC aa� r U W O � a F ar ... _ W � U g � Q Y W 2 0 a¢0 U H C' 2 W v� U 2 a H Q 0 F d «-� O W 2 U W OL N N N N 0 0 00 � � �� s � �� "ooaaa�xw ¢ �� c� LLc�c�aaa>=�m �- "°zz> Y Y� J J Y Y Y J f/1 =� T N N C7 ��...i 2 z t7Q Q OOOQ 2 J2 �OZ W OQ LLLL � W W K CGC y 201-LLF- Y�mN O O Y S m o0 a0 � Q N N O � O C�C7 C7 a'a' Q t-.-Kp2 � Y Y Z F�- Z 2 2��+. 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