Loading...
HRA 05/02/2013 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION May 2, 2013 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:12 p.m. ROLL CALL: MEMBERS PRESENT: Larry Commers Pat Gabel Stephen Eggert William Holm Gordon Backlund OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Darin Nelson, Interim City Manager Becky Kiernan, Accountant Jim Casserly, Development Consultant Greg Johnson, Development Consultant ACTION ITEMS: 1.Approval of Expenditures MOTION by Commissioner Eggert to approve the expenditures. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2.Approval of April 4, 2013 Meeting Minutes MOTION by Commissioner Eggert to approve the minutes as presented. Seconded by Commissioner Gabel. Commissioner Gabel asked for the following corrections to be made to the minutes: Pro Tem Gabel Page 1, Call to Order should read Chairperson Commers Page 2, sixth paragraph, fourth sentence should read… Novak-Fleck has a buyer for this property they and it will be the fifth home built since last summer. Page 8, second paragraph from the bottom should read Chairperson Pro Tem Gable asked if they revenue should use some of their bonds. HRA Meeting of May 2, 2013 2 Page 9, sixth paragraph, second sentence, should read… the list for a number of years now and are stages all in various states … UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MINUTES APPROVED AS AMENDED 3.Public Hearing and Consideration of Resolution Authorizing Sale of 5825 2 ½ Street MOTION by Commissioner Gabel to open the Public Hearing. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:16 P.M. Paul Bolin, HRA Assistant Executive Director, stated that last fall the HRA split the property to create two buildable lots. Novak-Fleck is proposing to build a three bedroom, two bathroom home on this property and the home specifications would exceed HRP guidelines. Staff is recommending approval of the resolution, authorizing the sale to Novak-Fleck Builders, Inc. This home’s value is around $201,000 and would create a new investment in the neighborhood. Commissioner Gabel asked what the price is of the lot. Mr. Bolin replied $30,000. Commissioner Gabel asked the price of the home being built. Mr. Bolin replied $201,000. MOTION by Commissioner Eggert to close the public hearing. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:20 P.M. MOTION by Commissioner Holm to adopt the resolution authorizing sale of 5825 2 ½ Street. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY rd 4.Public Hearing and Consideration of Resolution Authorizing Sale of 5961 3 Street NE MOTION by Commissioner Gabel to open the Public Hearing. Seconded by Commissioner Eggert. HRA Meeting of May 2, 2013 3 UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:22 P.M. Paul Bolin, HRA Assistant Executive Director, stated that Home Detail Builders has offered to purchase this property for $25,000. This is the seventh lot the Authority had platted in 2006 when they started to work with Blueprint Homes. Home Detail Builders homes will fit into the neighborhood because it is the same builder that Blueprint Homes used. There is already a buyer for this home that consists of four bedrooms, two bathrooms; a total of 1,500 finished sq. ft. Staff recommends approval of the resolution, authorizing the sale to Home Detail. This home offers a new investment in the neighborhood and the proposed home design is consistent with neighboring homes. MOTION by Commissioner Gabel to close the public hearing. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:25 P.M. rd MOTION by Commissioner Eggert to adopt the resolution authorizing sale of 5961 3 Street NE. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 5.Approval of TIF District #22, Northstar Station Transit District (TIF#22) Paul Bolin, HRA Assistant Executive Director, stated that in 2007 and 2008 Minnesota legislative sessions gave the City of Fridley the ability to create a Transit TIF District and to pool tax increment from three existing districts to pay for public improvements around the Northstar Station Area. The boundaries of the Northstar Transit Station District were defined by the legislature and include the properties shown on the map. Because of the poor economy in 2008, the HRA decided to wait until development was likely to happen in order to maximize the number of years tax increment could be collected. Mr. Bolin stated that the John Allen’s proposal for the former JLT site is the type of project the Authority had been waiting for. The increment generated by this new development will allow the Authority to assist in redevelopment in the Northstar Transit TIF area. Mr. Bolin stated that every time a tax increment district is created, tax plans are modified and changes are made to the overall development program by adding new phases. Tonight the Authority is increasing the geographic area of the project area. When the special legislation was received three more parcels were authorized. This was taken to the Planning Commission on April 17 and it was approved unanimously. Staff is recommending the Authority to adopt a resolution that modifies the existing Redevelopment Plan, expands the Project Area, amends the existing tax increment districts, and approves the Northstar Station TIF District #22. City Council will hold a Public Hearing and take action on this item on Monday, May 6, 2013. Chairperson Commers asked if funds from other districts can be used to set up this district. HRA Meeting of May 2, 2013 4 Jim Casserly , Development Consultant, replied yes, that is correct. Funds can be used from Districts 11, 12 and 13. Any costs for this new district can be paid by any resources the Authority has and the Authority also has the ability to use funds from other districts if needed. Chairperson Commers asked if the Authority was required to do that. Mr. Casserly replied no; but those resources were used to acquire the property. Chairperson Commers asked if tax increments from those districts were included in this analysis. Mr. Casserly replied no; every district has to have its own ledger. Years ago the Authority made the decision to have a unified program and most cities that do ongoing redevelopment have adopted this model. Chairperson Commers asked if the cash flow over the 26 years is $94M and the present value is $41M. Greg Johnson , Development Consultant, stated that the present value is $41.6M and cumulative value is $84.7M. Chairperson Commers asked in exhibit 1C if the projected values were just expected types of expenses, hypothetical values. Mr. Johnson replied that is correct, really broad categories were used in this exhibit. Mr. Casserly said that the expenses were dictated by the State Auditors Office. The OSA has determined this is how they want the numbers reported. Chairperson Commers asked if the same hypothetical values were used in the estimated financing and issuance of bonds. Mr. Casserly replied that is correct. The reports requirements are to reflect the maximum amount of bonds that would be issued. If the maximum isn’t reflected then the plan would have to be amended; this was done with a mathematical equation. Commissioner Backlund noted that in Paragraph C it talks about the costs to provide a tunnel under BNSF to access the Northstar commuter rail. He asked if this was referring to a second tunnel. Mr. Casserly answered that was the tunnel already constructed under the tracks at the Transit Station. At the time the tunnel was built, financial resources were not available to pay for that and this legislation allowed the Authority to use those funds. It didn’t make sense to create a district at that time because of the economy. That is how the Authority afforded the property and paid for some of the expenses. It also allowed the Authority to create a larger district at an appropriate time. Mr. Casserly stated that this is not designed for a specific project. For example a developer comes in to tear down the building site and it isn’t worth $5 sq. ft., it’s only worth $2 a sq. ft. The HRA Meeting of May 2, 2013 5 developer needs help to make up the difference between the cost to acquire the site and what the square footage is worth. This is designed to assist with the overall infrastructure. Resources can also be used in this area to facilitate a more intense area through sidewalks, bypasses and overpasses. Many of the resources will not be like what has been used in the past for specific type of assistance; it will be used for more general use. As more specific projects come in a developer may want more intensive use for the site but has parking issues for example, this does not support parking but the Authority may decide to assist with structured parking. This plan is really very open and every dollar is under the control of the Authority. Chairperson Commers asked what exhibit 24E was intended to show. Mr. Casserly replied that this exhibit is telling the Authority that the tax rate would actually go up by those percentages if all development were to occur without the tax increment district. These are not really increases but lost opportunities if all development occurred without any investment. Chairperson Commers asked if with an investment there is an actual decrease in these districts. Mr. Johnson replied that the base is frozen; taxes are being paid on the original tax increment. This basically is saying if no investment or development happened on its own, this is the change that would happen to the tax rates. MOTION by Commissioner Gabel to approve TIF District #22, Northstar Station Transit District (TIF #22). Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 6.Approval of Resolution Adopting Addition of Phase IX to HRP District #1 Paul Bolin, HRA Assistant Executive Director, stated that in December 2010, the Authority approved an amended and restated plan for the HRP. Parcels can be added by HRA Resolution, provided the parcels meet required criteria. Once in the program and new homes are constructed, the Authority is able to collect increment for 15 years on improvements. The plan is to get this home demolished and ready for sale in June. This is a highly desirable lot; it is 80’ x 129’ and a nice walk out lot. Staff recommends approval of Phase IX of the Housing Replacement Program. Commissioner Holm asked if the garage in the back would be demolished. Mr. Bolin was not sure; there is a builder interested in the property and he is not sure if they would like to keep garage. Either way they would build an attached garage too. Commissioner Holm noted that the alleyway is a dead end beyond this property; it may be abandoned at some point. Mr. Bolin agreed that could happen. MOTION by Commissioner Holm to adopt the resolution of the addition of Phase IX to HRP District #1. Seconded by Commissioner Eggert. HRA Meeting of May 2, 2013 6 UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS: 1.GWNE Project Update Paul Bolin, HRA Assistant Executive Director, stated that Dave McNutt has not had any luck attracting a retail anchor for the building he would like to construct on the former Sinclair site. The th exclusive agreement he had with the Authority expires on April 30. At this time, staff would not recommend extending his exclusive development agreement. Mr. McNutt would like to wait until Cub Foods is built as there is not a lot of demand for retail space this far up on University. Mr. McNutt would also prefer to be on the other side of University. Mr. Bolin stated that the Fridley Animal Hospital purchase agreement was signed and that th property will close on May 30. The Lyons / Trident Development (150 + units) is laying out design options to include FAH lot and 6071 lot. Architectural drawings will be available soon. 2.Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director,reported there was one RLF loan closed in April and one Remodel Advisor visit. Chairperson Commers asked what the interest rate was on the loans. Mr. Bolin replied 4.75% which may be a little high. The interest rate is tied to the state housing finance rate and is 1/4 % different from their rate. ADJOURNMENT: MOTION by Commissioner Gabel to Adjourn. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 8:05 P.M. Respectfully Submitted, Krista Peterson, Recording Secretary