Loading...
HRA 09/05/2013 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION September 5, 2013 CALL TO ORDER: Chairperson Pro Tem Gabel called the HRA Meeting to order at 7:00 p.m. ROLL CALL: MEMBERS PRESENT: Larry Commers Pat Gabel Stephen Eggert William Holm Gordon Backlund OTHERS PRESENT: Wally Wysopal, City Manager Paul Bolin, HRA Assistant Executive Director Scott Hickok, Community Development Director Darin Nelson, Finance Director Becky Kiernan, Accountant Jim Casserly, Development Consultant ACTION ITEMS: 1.Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 2.Approval of August 1, 2013 Meeting Minutes MOTION by Commissioner Holm to approve the minutes as presented. Seconded by Commissioner Eggert. th Chairperson Pro Tem Gabel noted on page 5, 7 paragraph, second sentence should read “…was an and agreement between…” UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MINUTES APPROVED AS AMENDED 3.Approval of 2013 Tax Levy for Taxes Payable in 2014 Paul Bolin, HRA Assistant Executive Director, stated this request is to authorize the HRA to tax properties within their community to support housing and redevelopment efforts. The levy is equal to .0185% of taxable market value. The 2014 levy will allow the HRA to collect $380,600. The impact on taxpayers will be $24.98 on a home valued at $135,000 and $185.00 on a $1million commercial property. Staff recommends approval of the resolution consenting to the HRA Tax HRA Meeting of September 5, 2013 2 Levy. This provides the HRA the ability to fund ongoing and future redevelopment efforts and the ability to meet housing needs. City Council will act on this item 9/9/13 and the levy will be certified and delivered to County by 9/13/13. Commissioner Eggert asked if this rate has deviated at all in the past. Mr. Bolin replied that the .0185 rate has not changed in the past 8 years. Commissioner Holm stated that this ongoing levy has been in effect for a number of years. The $24.98 amount impacts the homeowner and will probably not reflect an increase over the previous year because the home values have gone down. MOTION by Commissioner Backlund to Approve the 2013 Tax Levy for Taxes Payable in 2014. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 4.Approval of Home and Garden Show Administrative Contract Paul Bolin, HRA Assistant Executive Director, said that Fridley has been the fiscal agent for the Home & Garden Show for 16 years. (Blaine & Mounds View partner with us on the show) Revenues from booth rental cover the expenses for show. Since 2005, the Home & Garden Show has contracted with Marsha Wagner from Castle Visions to perform administrative tasks. Staff recommends approval of the contract authorizing Castle Visions to perform the administrative work for 2014 Home & Garden Show. Commissioner Holm said that this is a reasonable rate and they have been effective in the past. MOTION by Commissioner Holm to Approve the Home and Garden Show Administrative Contract. Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 5.Approval of Master Plan Amendment – Fairview Clinic (6341 University Avenue) Paul Bolin, HRA Assistant Executive Director,stated that in S-2 (Redevelopment) Zoned Districts, a Master Plan Amendment needs to be reviewed and approved by the Planning st Commission, HRA and City Council. The Planning Commission approved this on August 21 and th City Council is scheduled to approve on September 9. This addition meets the setback and lot coverage requirements. City code requires 150 parking stalls and the clinic will provide 235 parking stalls. City engineering and fire department staff have reviewed and approved the site plan and new driveway. Staff recommends the Authority approve a motion approving Fairview’s Master Plan Amendment. Chairperson Commers asked if this would affect the ownership part of the parking lot. HRA Meeting of September 5, 2013 3 Mr. Bolin replied no; everything they are doing is well outside of that area. MOTION by Commissioner Gabel to approve the Master Plan Amendment – Fridley Clinic (6341 University Avenue). Seconded by Commissioner Backlund. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 6.Approval of Letter of Understanding – Trident Development (GWNE) Paul Bolin, HRA Assistant Executive Director, stated that this Letter of Understanding provides a means for the Authority to retain control of the property. It provides assurance to Trident that the property will be sold to them if the project is agreeable to the HRA and the City approves the land use items. The HRA will be cooperative and negotiate only with Trident. By February 2014 the following will be completed: Environmental review Determination of new roads Market analysis update Title work Determine public amenities Financing plan Analyze fencing costs Obtain Site Plan approval from City February / March 2014: Negotiate redevelopment contract Timing of plat approvals Phasing / timing issues Type / quality of product Purchase price Timing / payment of broker fees April / May 2014: Close on parcel(s) / start construction Mr. Bolin said that Staff Recommends that the Authority approve the Letter of Understanding, allowing Staff and Trident Development to work towards redeveloping the GWNE properties. Commissioner Eggert stated that this Letter of Understanding reads more like an Option Agreement and thought the language was kind of vague. The Authority has been holding this property and he was concerned there is no drop dead date or a lot of specifics. This locks up the land to anyone else and he was concerned in February the Authority could be back to zero looking for a buyer again. Jim Casserly, Development Consultant, replied that since this agreement was written a drop dead date has been added; the language is on page three of the agreement states the date of April 4, 2014 or whichever comes first. Different agreements have been tried involving the sale of public property and the problem, with an Option Agreement, is that the terms need to be worked out. The best option agreements are the ones with purchase agreements attached. If all the terms are sorted out a Letter of Understanding isn’t needed so this is different than an Option Agreement. This is a declaration stating that the Authority intends to work together to see if this site will work. The developer doesn’t know if this site will work yet and the price is not confirmed at this time because it is unknown what the Authority will require on the site. Because this information isn’t available, a purchase agreement can’t be created, which is what the developer wanted. HRA Meeting of September 5, 2013 4 Mr. Casserly added that the developer wants assurance that the Authority isn’t actively marketing the site and wording has been added that this site will not be listed on MLS or marketed during the term of this agreement. Mr. Bolin said that the agreement with the realtor was up at the end of June. Commissioner Eggert asked if the realtor would be compensated for the sale. Mr. Bolin replied not until a closing takes place. Mr. Casserly said that is another issue that needs to be resolved. The realtor’s agreement contained provisions to pay commission based on square footage even if the land was conveyed for a dollar. It is unlikely that will happen but right now there aren’t enough numbers as to what the price of the site should be. Chairperson Commers asked what the purchase price would be reduced from. Mr. Casserly said he didn’t know. The problem is the road, what has to be done with the road and what kind of amenities make this site work. There are things that can be done to make this a more desirable product that the city may think is worthwhile doing like underground parking or a community building. We are not in the land holding business; we are in the development business. It will be developed in a defined period of time which is the purpose of this type of agreement. This agreement is meant to develop an understanding that the Authority will work cooperatively to see if this will work out. Chairperson Commers stated that it is unknown what the public improvements will be at this time. Mr. Casserly answered that is correct. Commissioner Eggert said basically this land will be tied up without a cost and allowing the developer to do the work they need to do to determine what can be done and if it can be done. If the Authority is willing to tie this up for this period of time the only costs to the HRA are the taxes during this timeframe. In the end this could be a nice development. Mr. Casserly added that the property is currently tax exempt. CommissionerBacklund summarized that the Authority wants to do business with Trident and because it is unknown what will be developed, eight months is given to see what will work and the Authority will take the risk of tying the land up for that period of time. Chairperson Commers thought that was an accurate description of what will take place. Commissioner Eggert said that the developer will probably spend a sizeable amount of money in coming up with a development. HRA Meeting of September 5, 2013 5 MOTION by Commissioner Holmto approve the Letter of Understanding – Trident Development (GWNE) as amended with language of expiration date of April 4, 2014 included. Seconded by Commissioner Eggert Roger Fink, Trident Development, said that this is a unique instrument in their line of business as well. A great deal of expense will incur in the next months in engineering and design work. He appreciated the Authority’s confidence in their abilities and said that Trident would gladly come back to the Authority at any time to provide updates on the project. Trident is looking forward to working with staff to create the plan. This development comes with timing challenges and there is a possibility Trident may ask, in February or March, for an extension if they are almost there but not quite ready to close. Chairperson Commers asked about the preliminary thought of phasing in the project. Mr. Fink replied that the market study will tell them a lot. He is thinking that there will be one building under construction and will fill it. When it is complete and if early market indications are strong enough they may build another while the next one fills up. There may be delays with the winter season and the next building may start in the spring. The lending source will also have qualifications on what triggers the next building source. One lender is looking for a larger presence in this marketplace and is eager to help them out. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 7.Approval of Parking Lot/Walkway Lighting Purchase – Fridley Municipal Center Paul Bolin, HRA Assistant Executive Director, stated that the Authority owns all the property around Municipal Center. The City is replacing the roof and walkway above the police shooting range and garage ($178,000). They have asked HRA for assistance to replace four light poles and fixtures ($7,520). Staff recommends approval of the City’s request. MOTION by Commissioner Gabel to approve the parking lot/walkway lighting purchase at the Fridley Municipal Center. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS: 1.Potential Purchase Offer – Columbia Area Paul Bolin, HRA Assistant Executive Director, said that this item should be removed. Council has expressed an interest in purchasing the arena. An appraisal has been done and it will take a combination of the HRA and city resources to make an offer to purchase the property. Questions need to be answered before staff can make a recommendation on this item. Staff is asking the Authority to meet with City Council on Monday, September 23 to have a discussion about the appraisal, offering price and funding for the purchase. HRA Meeting of September 5, 2013 6 2.Redevelopment Agreement – Hyde Development (4800 East River Road) Paul Bolin, HRA Assistant Executive Director, stated that this is probably the most complex arrangement the Authority will ever have. Paul Hyde is very careful and has good legal counsel. He has been his own attorney up to this point. Another draft is going back and forth and many changes have been made since the last draft. The finalized agreement should be ready for the Authority by the end of next week. The Authority is asked to review the agreement and send back any questions to staff. 3.Redevelopment Assistance Request – Industrial Equities (5601 East River Road) Paul Bolin, HRA Assistant Executive Director, stated that City Council discussed the five year nd timeframe to some great length on July 22. The Council did not ultimately amend their motion to include the five year timeframe in their approval. Therefore, there is no timeframe for the City to th make a determination on the future construction for the 57 Avenue extension. Mr. Allen intends rd to get the information necessary to staff in time to bring this item forward to the October 3 meeting. Chairperson Commers said that the entire plan and investment in the transit district is to create an urban movement of people to the mass transit. He didn’t think the Authority give up on it. Scott Hickok , Community Development Director, said that staff understands Mr. Allen’s concern about having a time frame but there are complex issues below the surface. Staff doesn’t want to give up on the Comprehensive Plan to make those connections and types of things that are in store for this area. 4.Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said that two regular loans were closed in August for a total of 8 year to date which is ahead of last year. There was one remodeling advisor visit making a total of four year to date. Commissioner Holm asked what the loans were for, what kind of improvement were being done. Mr. Bolin thought one was for a kitchen remodel. ADJOURNMENT: MOTION by Commissioner Backlund to Adjourn. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 8:00 P.M. Respectfully Submitted, Krista Peterson, Recording Secretary