HRAM 03/07/2017
CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION
March 7, 2019
Chairperson Holm called the Housing and Redevelopment Authority Meeting to order at 8:15
p.m.
MEMBERS PRESENT: William Holm
Elizabeth Showalter
Dave Ostwald
Gordon Backlund
MEMBERS ABSENT: Kyle Mulrooney
OTHERS PRESENT: Wally Wysopal, City Manager
Paul Bolin, HRA Assistant Executive Director
Action Items:
1. Approval of Expenditures
MOTION by Commissioner Backlund to approve the expenditures as presented. Seconded by
Commissioner Showalter.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY.
2. Approval of February 13, 2019 Meeting Minutes
MOTION by Commissioner Showalter to approve the minutes as presented. Seconded by
Commissioner Ostwald.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MINUTES APPROVED.
3. Approval of Resolution – HRP Parcels – Anoka County Tax Forfeiture
Paul Bolin, HRA Assistant Executive Director, stated that in late 2010, the Authority and Council
approved an amended and restated plan for the HRP. The restated plan gave the Authority the
ability to add Phases (parcels) to the program by resolution. The City Council recently adopted a
resolution expressing their desire to obtaining these properties from Anoka County. This past
week, the Council provided pricing, including all acquisition costs to the City. The total cost for
both of the homes is $187,065.97.
Housing and Redevelopment Authority Meeting of March 7, 2019 2
Mr. Bolin said that once a parcel is included in the district, the HRA collects tax increment for a
period of 15 years. The increment is used to help cover some of the costs of the program. Unlike
a traditional tax increment district, the HRP is less cumbersome to administer. Since the program
originally began in 1995, the City has approved thirteen phases for a total of 40 properties. Under
special legislation approved in April 2010, the City can designate up to 100 total parcels, inclusive
of the 40 properties currently in the program.
Mr. Bolin said that Anoka County recently made two tax-forfeit properties available to the City.
Both properties are vacant, dilapidated and meet the requirements for the Housing Replacement
Program. The properties are located at 6209 Baker Avenue NE and 4733 2 ½ Street NE. The
property at 6209 Baker Avenue appears to be repairable and its visible location would lend itself
well to be used as a home remodeling demonstration through our Fridley Foundations program. It
has been over 8 years since the Authority has been able to acquire a property that would be suitable
for that program. The property at 4733 2 ½ Street NE is a teardown. Staff will have the home
demolished and place the lot for sale later this spring. Based on demand for Fridley lots, this site
is likely to have a new home in place by Halloween.
MOTION by Commissioner Backlund to approve the resolution, HRP Parcels, Anoka County
Tax Forfeiture. Seconded by Commissioner Showalter.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY.
4. Postponement of Approval of Land Sale – Sherman Associates - 6050 Main Street
Paul Bolin, HRA Assistant Executive Director, stated that staff have been working with Sherman
Associates to help fill a $600,000 funding gap on the mixed income portion of their development
project. They are very close to having a solution that works well for both parties, but that will
require an amendment to the existing redevelopment agreement. The amendment will be ready
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for the Authority approval on April 4. Staff is asking that the public hearing on the land sale be
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postponed until April 4 to be approved the same time as the amendment to the redevelopment
agreement.
Mr. Bolin noted that pubic hearing notices are required to be published in one of the official
newspapers, a number of days before the meeting. Because the ad was placed prior to making the
determination that an amendment would be needed to accommodate the gap financing, the public
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hearing was scheduled for March 7. Staff is now asking the Authority to simply adopt a motion
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postponing the public hearing on the land sale until April 4, so it can be acted upon with the
redevelopment agreement.
MOTION by Commissioner Showalter to defer the public hearing to April 4, 2019. Seconded by
Commissioner Backlund.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Housing and Redevelopment Authority Meeting of March 7, 2019 3
5. Approval of Bid Solicitation – Demolition of 6431 University Avenue
Paul Bolin, HRA Assistant Executive Director, stated that when staff was developing the contract
for the redevelopment of the former City Hall site, it was envisioned that it would be advantageous
for the Authority to have the developer be responsible for the demolition. The deal was structured
such that the demolition costs would be deducted from the sales price. As we have moved forward,
the demolition has become more complicated and it may be advantageous for the Authority to
complete the demolition prior to the closing.
Mr. Bolin noted that discussions with the developer and separate discussions with the demolition
contractors, staff believe the Authority can do the demolition for less than what would be paid to
the developer to take on the demolition. Staff would work to solicit bids in anticipation of
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awarding the demolition contract on April 4. Staff recommends that Authority authorize Staff to
begin the bid solicitation process for the demolition of the former City Hall building located at
6431 University Avenue NE.
Chairperson Holm asked if this approval means staff may or may not go out for bids depending
on negotiations.
Mr. Bolin replied correct, but that there will be bidding on this project either way. If they do work
on our behalf, the developer will get bids. If the Authority takes on all of demolition staff would
get bids from contractors for the demolition.
MOTION by Commissioner Showalter to approve the bid solicitation, demolition of 6431
University Avenue. Seconded by Commissioner Backlund.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARREID UNANIMOUSLY.
6. Postponement of Approval of Land Sale – Fridley Investments, LLC – 6431 University
Avenue
Paul Bolin, HRA Assistant Executive Director, said that this item is in relation to item the
Authority already acted upon with the bid solicitation. Staff is asking the Authority to open the
public hearing and continue to the April 4 meeting to authorize the actual land sale.
Commissioner Backlund asked why the Authority doesn’t just table the public hearing.
Jim Casserly, Development Consultant, replied that staff wants to set a certain date. If the public
hearing is deferred we don’t know when to take it off of the table.
MOTION by Commissioner Backlund to open the public hearing and continue to April 4, 2019.
Seconded by Commissioner Showalter.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Housing and Redevelopment Authority Meeting of March 7, 2019 4
Informational Items:
1. Housing Programs Update
Paul Bolin, HRA Assistant Executive Director, said three loans closed on making three year to
date. There were no remodel advisor visits and four home energy squad visits for 11 year to date.
The next meeting is April 4 starting at 8:15 pm.
Adjournment:
MOTION by Commissioner Backlund to adjourn. Seconded by Commissioner Ostwald.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON PRO TEM EGGERT
DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING
ADJOURNED AT 8:36 P.M.
Respectfully submitted,
Krista Peterson
Recording Secretary