HRAM 01/08/2015
CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION
January 8, 2015
CALL TO ORDER:
Chairperson Commers
called the HRA Meeting to order at 7:03 p.m.
ROLL CALL:
MEMBERS PRESENT:
William Holm
Larry Commers
Pat Gabel
Stephen Eggert
MEMBERS ABSENT:
Gordon Backlund
OTHERS PRESENT:
Paul Bolin, HRA Assistant Executive Director
Wally Wysopal, City Manager
ACTION ITEMS:
1.Approval of Expenditures
MOTION
by Commissioner Holm to approve the expenditures. Seconded by Commissioner
Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
2.Approval of December 4, 2014 Meeting Minutes
Chairperson Commers
noted that the amended resolution 2014-09 is not reflected on page
six in the minutes. He requested that the minutes be tabled, corrected and resubmitted at the
February meeting.
MOTION
by Commissioner Gabel to table the minutes until February 5, 2015. Seconded by
Commissioner Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
3.Approval of Resolution Designating Official Depositories
Paul Bolin,
HRA Assistant Executive Director, stated that the service HRA receives from
Wells Fargo has been first rate. Wells Fargo is responsive to not only requested information,
City of Fridley Housing and Redevelopment Meeting of January 8, 2015 2
but also other banking issues that may arise. Wells Fargo provides a one-stop-shop for the
Authority’s required banking needs. Staff recommends a motion adopting a resolution
designating official depositories for the Housing and Redevelopment Authority for 2015.
Chairperson Commers
asked if one or two signatures were required for transactions.
Mr. Bolin
replied two signatures; the resolution authorizes three people that can sign for the
Authority.
MOTION
by Commissioner Eggert to approve the resolution designating Wells Fargo as the
official depository for 2015. Seconded by Commissioner Gabel.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
4.Approval of Resolution Designating Official Newspaper
Paul Bolin,
HRA Assistant Executive Director, stated that the Fridley City Charter Section
12.01 requires designation of an official newspaper for the Fridley Housing and
Redevelopment Authority. Staff is recommending that Fridley Sun Focus News be
designated as the official legal newspaper of the Fridley Housing and Redevelopment
Authority for 2015. The Minneapolis Star Tribune is designated as the Fridley Housing and
Redevelopment Authority’s second official newspaper for the year 2015.
Commissioner Gabel
said that she does not get the Sun Focus Newspaper.
Wally Wysopal,
City Manager, replied that some neighborhoods do not get the Sun Focus
because there is no one available to distribute the paper in that area.
MOTION
by Commissioner Holm to approve the resolution designating the Official
Newspaper. Seconded by Commissioner Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
5.Approval of Amendment to CEE Contract
Paul Bolin,
HRA Assistant Executive Director, stated that the Center for Energy and
Environment (CEE) is the non-profit agency the Authority has partnered with since 1996, to
oversee the housing programs. Partnering with CEE, allows the HRA to outsource most of
the administrative functions, including program marketing, loan processing, underwriting,
loan closing, and payment to the contractors.
Mr. Bolin
said that CEE provides technical assistance to Fridley homeowners on such topics
as remodeling, energy conservation, indoor air quality and related subjects. The partnership
City of Fridley Housing and Redevelopment Meeting of January 8, 2015 3
with CEE allows the Authority to leverage outside dollars and customize loan packages to
meet individual homeowners’ circumstances.
Mr. Bolin
said the current agreement with CEE expired on December 31, 2014. Staff would
like to continue working with CEE and is recommending that the HRA renew its
commitment for another two years. For the first time in ten years, CEE is seeking some
changes in the rate of compensation for certain services. These fee changes are necessary for
CEE to cover their actual costs in providing these services.
Mr. Bolin
reviewed the following changes to the existing agreement. CEE provides a
number of marketing efforts each year like postcards, mailers and participation in the Home
and Garden Show. The Authority only pays for printing and mailing of marketing materials.
The contract fee was $55/hour for development of customized marketing materials and the
new cost will be $65/hour to cover the cost of the service. CEE had been paid a flat fee of
$130 per visit for remodeling advisor services which typically took 1 ½ - 2 hours to
complete. Due to increases in CEE’s cost to deliver these services the rate of compensation
for this service will now be $225 per visit. The Authority typically has provided 10-20 of
these visits per year.
Mr. Bolin
said that staff recommends that the Authority approve the amendment to the Loan
Origination Agreement with the Center for Energy and Environment through December 31,
2016.
Commissioner Gabel
thought that was a large increase on the remodel advisor visits.
Mr. Bolin
replied that in 2004 the fee was $130 and this is the first increase proposal since
then. Because of the increase in overhead and labor costs, the new rate is $225 to cover
CEE’s costs.
Commissioner Gabel
didn’t think the increase was out of line, just wondered why it was
such a large increase.
Chairperson Commers
asked if the price would increase on the Home Energy Squad visits.
Mr. Bolin
replied no, the HRA share is going down because they received grant funds from
Xcel Energy to use towards this program.
MOTION
by Commissioner Gabel to approve amendment to the CEE Contract. Seconded
by Commissioner Holm.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
City of Fridley Housing and Redevelopment Meeting of January 8, 2015 4
nd
6.Public Hearing – Sale of Lot at 5875 2 Street
MOTION
by Commissioner Gabel to open the public hearing. Seconded by Commissioner
Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT
7:15 P.M.
Paul Bolin
, HRA Assistant Executive Director, stated that Kaleab Girma of Real Estate
Transformers has submitted a lot reservation agreement to build a new home on the lot
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located at 5875 2 Street. Due to timing, the builder has not yet started designing the home.
The Authority’s lot reservation agreement provides the builder up to 60 days to find a buyer
and submit home plans meeting the program’s criteria.
Mr. Bolin
said that based on Mr. Girma’s recent history in the city, Staff is confident Mr.
Girma will design the home and find a buyer over the next 60 days. Staff recommends
approval of the resolution authorizing the sale of the lot to Rea Estate Transformers for
$30,000 upon submittal of home plans meeting criteria of the Authority’s Housing
Replacement Program.
Chairperson Commers
asked if after 60 days the reservation would terminate if Mr. Girma
doesn’t find a buyer.
Mr. Bolin
replied yes, but the Authority has discretion to extend the 60 days if needed.
Commissioner Gabel
noted that it is the middle of the winter and extra time may be needed
to start construction.
Chairperson Commers
asked where the 60 days was noted in the resolution.
Mr. Bolin
replied that it is not in the resolution but that is the city’s policy and criteria for
HRP and the dating is on the lot reservation forms that the buyers and builders fill out.
Commissioner Gabel
asked if the 60 days was enforceable if it is not in the resolution.
Mr. Bolin
replied that if the builder is unable to find a buyer the Authority can adopt a
resolution to rescind the approval of the sale.
MOTION
by Commissioner Eggert to close the public hearing. Seconded by Commissioner
Gabel.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC
HEARING CLOSED AT 7:20 P.M.
City of Fridley Housing and Redevelopment Meeting of January 8, 2015 5
nd
MOTION
by Commissioner Holm to approve the sale of 5875 2 Street to Real Estate
Transformers. Seconded by Commissioner Gabel.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
Informational Items
1.Housing Loan Program Update
Paul Bolin,
HRA Assistant Executive Director, reported that no loans closed last month so
the year to date total is 20 loans. This was a good year for the loan program as there were
twice as many loans closed as last year and it was the third highest total in the last nine years.
There were also no remodeling advisor visits in December and only six year to date. The
Home Energy Squad had 17 visits in December making a total of 127 visits in 2014 and the
program just started in April.
Mr. Bolin
has a meeting set up with CEE next week to talk about marketing their programs
for 2015. The remodel advisor visits were down in all communities, not just Fridley.
Mr. Bolin
reviewed the Authority’s 2014 accomplishments:
Cielo project kick off on University Avenue. The Authority started purchasing
property in 2006 and in 2007 conducted a planning process, acquired all properties
and broke ground with Cielo this fall.
Broke ground on Northern Stacks and the first building is nearly completed.
Demolition of the southern BAE building is close to starting. Staff met yesterday
with 25 different people trying to get the final details together to keep BAE in
operation while they remove part of the building.
MOTION
by Commissioner Gabel to accept the letter from DEED dated December
19, 2014 relating to the State Grant. Seconded by Commissioner Holm.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY
The Columbia Arena purchase has closed and letters of protection from the MPCA
have also been received. The letter indicates no association on the soil vapors.
During the course of demolition if soils are moved around it could aerate the soil and
release vapors. It seems that the MPCA is ok with that approach.
Last month the Authority hired the Corridor Development Initiative to start a public
planning process to figure out the best use for the Columbia Arena site. Four public
meetings will take place 3/11, 3/25, 4/8 and 4/22. All Wednesday nights at the
Community Center at 6:30 p.m. Information will be posted on the city’s website and
in the paper to draw a large crowd.
City of Fridley Housing and Redevelopment Meeting of January 8, 2015 6
Lastly, the Metro Community Home and Garden Show is scheduled for Saturday
February 28 from 9-3 at the National Sport Expo Center.
http://northmetrohomeandgarden.com
Adjournment
MOTION
by Commissioner Eggert to adjourn. Seconded by Commissioner Gabel.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS
DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING
ADJOURNED AT 7:32 P.M.
Respectfully Submitted,
Krista Peterson, Recording Secretary