HRAM 07/11/2019
CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION
July 11, 2019
Chairperson Holm called the Housing and Redevelopment Authority Meeting to order at 8:10
p.m.
MEMBERS PRESENT: William Holm
Elizabeth Showalter
Dave Ostwald
Gordon Backlund
MEMBERS ABSENT: Kyle Mulrooney
OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director
Jim Casserly, Development Consultant
Greg Johnson, Development Consultant
Action Items:
MOTION by Commissioner Showalter to add the following items to the agenda.
Approval of May 2, 2019 HRA Meeting Minutes
Approval of a Temporary Construction Easement
Amendment to the Lennar Agreement
Seconded by Commissioner Backlund.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY.
1. Approval of Expenditures
MOTION by Commissioner Showalter to approve the expenses as submitted. Seconded by
Commissioner Backlund.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY
2. Approval of June 6, 2019 Meeting Minutes
MOTION by Commissioner Backlund to approve the minutes as presented. Seconded by
Commissioner Ostwald.
Commissioner Backlund noted a correction on page 2 toward the bottom to take out one of the
“motions”.
Housing and Redevelopment Authority Meeting of July 11, 2019 2
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MINUTES APPROVED AS AMENDED.
3. Approval of Amendment to Sherman Agreement – Fridley Station Village
Paul Bolin, Assistant Executive Director, stated that in May of 2018 the Authority signed a
contract with Sherman Associates to construct 107 senior units, 72 mixed income units and 95
market rate units. In April of 2019 the Authority amended dates to address increases costs, increase
in units and delays. The proposed amendment is to adjust the dates in the contract due to further
delays from ACRRA and Sherman’s IRS Code 1031 regarding the sale of another property. Staff
anticipates closing with Sherman in early August. Demolition and reconstruction of the parking
and ponding would start immediately. Staff recommends approval of the amendment to the
Sherman development contract.
MOTION by Commissioner Ostwald to approve amendment to the Sherman Agreement – Fridley
Station Village. Seconded by Commissioner Showalter.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY.
4. Approval of May 2, 2019 Meeting Minutes
MOTION by Commissioner Showalter to approve the May 2, 2019 meeting minutes as presented.
Seconded by Commissioner Ostwald.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY.
5. Approval of a Temporary Construction Easement
Paul Bolin, Assistant Executive Director, stated that Sherman will be demolishing and
reconstructing parking, on HRA owned property leased to Metro Transit. The lot is being
constructed to Metro Transit specifications and paid for by Sherman. A temporary construction
easement is drafted to protect and indemnify the HRA. Staff recommends approval of the
temporary construction easement.
Chairperson Holm asked if Sherman owned the property adjacent to the property.
Mr. Bolin replied yes, they will own it. This will happen after the closing and they will own the
property. The HRA will continue to own where the parking will go and Sherman will own the rest
of the property. The easement won’t go into effect until we close on the property.
MOTION by Commissioner Showalter to approve the temporary construction easement.
Seconded by Commissioner Ostwald.
Housing and Redevelopment Authority Meeting of July 11, 2019 3
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY.
6. Amendment to the Lennar Agreement
Paul Bolin, Assistant Executive Director, said that in December of 2018 the Authority signed a
contract with US Home Corp. (Lennar Homes) to build 72 townhomes. In June of 2019 the
Authority amended the agreement to address environmental concerns. The proposed amendment
is to address timing to the plat and closing. Adjustments to the boundaries in this new plat require
additional action. The City will transfer the property to the HRA to facilitate the filing of the plat.
This will be transferred through an ordinance; on August 27 the property will transfer to the HRA
and Lennar is seeking to close the week of July 22. The proposed amendment allows the closing
to stay on schedule. Staff recommends the Authority to approve the attached resolution to adopt
this amendment to the development contract with Lennar Homes.
MOTION by Commissioner Backlund to approve the amendment to the Lennar Agreement.
Seconded by Commissioner Showalter.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Informational Items:
1. Housing Programs Update
Paul Bolin, Assistant Executive Director, reported that in June 2 senior loans and one other loan
was closed making a total of 9 year to date. The Remodel Advisor Visits had four in June making
12 year to date. There were no home energy squad visits to update this month. Those numbers
will be brought to the August meeting.
Adjournment:
MOTION by Commissioner Backlund to adjourn. Seconded by Commissioner Showalter.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:35 PM.
Respectfully submitted,
Krista Peterson
Recording Secretary