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HRAM 09/04/2014 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION September 4, 2014 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:00 p.m. ROLL CALL: MEMBERS PRESENT: William Holm Larry Commers Pat Gabel Stephen Eggert Gordon Backlund OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Darin Nelson, Finance Director Wally Wysopal, City Manager Jim Casserly, Development Consultant ACTION ITEMS: 1.Approval of Expenditures MOTION by Commissioner Eggert to approve the expenditures. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2.Approval of August 7, 2014, Meeting Minutes MOTION by Commissioner Gabel to approve the minutes. Seconded by Commissioner Eggert. Commissioner Gabel asked for the following corrections to be made: nd Page 3, item 4, 2 paragraph, should read “Mr. Bolin said that staff recommends the Authority to approve…” th Page 4, 4 paragraph from bottom, last sentence should read “This new product is a cement board prodcut product…” UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MINUTES APPROVED AS AMENDED 3.Resolution for Approval of 2014 Tax Levy for Taxes Payable in 2015 City of Fridley Housing and Redevelopment Meeting of September 4, 2014 2 Darin Nelson, Finance Director, stated that MN Statutes authorize HRA’s to levy properties within their community to support housing and redevelopment efforts. The levy is equal to .0185% of taxable market value. The 2015 levy will allow the HRA to collect $360,487 and the impact on taxpayer is as follows: $135,000 home - $24.98; $150,000 home - $27.75 $1 million commercial property - $185.00 Mr. Nelson said that staff recommends approval of the resolution consenting to the HRA Tax Levy as it provides the HRA the ability to fund ongoing and future redevelopment efforts and provides the ability to meet housing needs. Council will act on this item on September 8, 2014 and the levy will be certified and delivered to the County by September 10, 2014. Chairperson Commers said this is based on the market values as of January 1, 2013. Mr. Nelson replied that is correct Chairperson Commers asked if the HRA was limited in using these funds for rehab housing only or if the funds could be used for anything. Jim Casserly , Development Consultant, replied that the funds could be used for anything in authorized in the HRA Act. MOTION by Commissioner Gabel to Approve the 2014 Tax Levy for Taxes Payable in 2015. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4.Approval of Home and Garden Show Administrative Contract Paul Bolin , Assistant HRA Executive Director, stated that Fridley has been fiscal agent for the Home & Garden Show for 17 years. (Blaine & Mounds View) Revenues from booth rental cover expenses for show. Since 2005, the H&G Show has contracted with Marsha Wagner/Castle Visions to perform administrative tasks. Staff recommends approval of the contract authorizing Castle Visions to perform admin work for 2015 H&G Show. This year’s show will be held at the National Sports Center in Blaine on February 28th, 2015. Commissioner Eggert noted that last year vendors and attendance had increased. Mr. Bolin replied that last year about 900 attended and the year before 700. Typically there are about 1,000 attendees. MOTION by Commissioner Holm to Approve the Home and Garden Show Administrative Contract. Seconded by Commissioner Eggert. City of Fridley Housing and Redevelopment Meeting of September 4, 2014 3 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 5.Approval of Amendment to DEED Grant Contract – Northern Stacks Paul Bolin , Assistant HRA Executive Director, said that late last year the Northern Stacks project was awarded $835,000 from DEED as part of a contamination clean up grant. This grant was for phase 1 of the development. The purpose of the grant program is to assist to cleanup contamination in accordance with the response action plan (RAP). The original contract was not clear on what is eligible for inclusion as a local match. Mr. Bolin stated that DEED is now considering capping to be an eligible local match. TRBA funds may be used for 13% of the match. Staff recommends that the Authority approve an amendment to DEED’s Contamination Cleanup Grant Contract, allowing capping as an eligible expense for the local match. Chairperson Commers thought it was a little complicated but it won’t affect the HRA with respect to the impact of the original financial commitment. Mr. Bolin replied that it allows the Authority to count the cap as their local match and this is a good thing. Chairperson Commers asked if capping was used in other instances. Mr. Bolin replied that it was used for the Murphy / Onan developments. Commissioner Holm asked if capping was intended to be used in an area where buildings are now under construction. Mr. Bolin replied yes; there are a number of areas being capped during this first phase which is why there is such a large cost. There is over $2M in capping expenses just in this first phase of the development. MOTION by Commissioner Gabel to Approve the Amendment to the DEED Grant Contract – Northern Stacks. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 6.Reinstatement of and First Amendment to Commercial Industrial Purchase Agreement – 7011 University Avenue NE Paul Bolin , Assistant HRA Executive Director, stated that a Phase I Environmental Study identified that refrigeration equipment was removed from arenas and there was a potential that Freon was not properly recovered. Braun-Intertec conducted Phase II Environmental City of Fridley Housing and Redevelopment Meeting of September 4, 2014 4 Study and sampled soils, water, and soil vapor. The soils and water were clean; traces of Freon were found in the soil vapor. Little information is known on the required treatment of Freon vapor in soils. Braun is doing more research on our behalf to determine extent / cost of treatment needed. Mr. Bolin said that the closing on this property has been postponed to the end of September. Braun doesn’t think this will be a big issue. The biggest danger from Freon to a human being is that it displaces oxygen. Freon vapors and chemicals are very volatile. If someone runs a plow through the soil and Freon vapor is exposed it will dissipate into the atmosphere. Mr. Bolin said that the item before the Authority tonight is a reinstatement and extension of the original purchase agreement. This has been reviewed and signed by the sellers. To provide time needed for additional Environmental research, Staff recommends approval of the “Reinstatement of and First Amendment to Commercial Industrial Purchase Agreement”. Commissioner Gabel asked if the soil vapor for this Freon would release if the soil were scraped. Mr. Bolin replied that it would be a vapor they would pick up in the soil samples. Chairperson Commers said it is the Carbon tetrachloride number we are concerned about and want to make sure that is not in the samples. MOTION by Commissioner Backlund to Reinstate the First Amendment to Commercial Industrial Purchase Agreement – 7011 University Avenue NE. Seconded by Commissioner Eggert. Commissioner Holm stated that the original purchase agreement was cancelled to protect the Authority’s interests in this matter because if it cost a lot to clean up we don’t want to be responsible for those expenses. He asked who would sign off on the actual purchase agreement. Mr. Bolin replied that the Chair or Vice Chair and the Executive Director or myself. Commissioner Holm asked if they would be informed before the agreement is signed. Mr. Bolin replied that if the samples come back and it’s going to be a large expense to clean up, staff would call a special meeting to discuss. Staff is optimistic that this won’t be a big issue. If research shows a big problem there will be a special meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY Informational Items 1.Housing and Loan Update City of Fridley Housing and Redevelopment Meeting of September 4, 2014 5 Paul Bolin, HRA Assistant Executive Director, reported that there were 3 loans closed in August and two home visits. The Home Energy Squad has been busy with 44 visits in August for a total of 73 year to date. Mr. Bolin reported that he spent time over the past few days working with Trident, their Title Company and attorney. Staff is trying to close by September 15. Wally Wysopal , City Manager, said would like to schedule a joint meeting with City Council to review the TOD Plan on September 22. Chairperson Commers asked what role the Authority has in connection with these meetings. Mr. Wysopal replied that the planning department has insights on how this area may be developed. Staff doesn’t want to omit the Authority from providing feedback in this process. Staff doesn’t want to overtax the Authority with meetings but the last time the Authority attended, the input was greatly appreciated. Adjournment MOTION by Commissioner Eggert to adjourn. Seconded by Commissioner Holm. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND DECLARED THE MEETING ADJOURNED AT 7:45 P.M. Respectfully Submitted, Krista Peterson Recording Secretary