HRAM 08/6/2020
CITY OF FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION
August 6, 2020
Chairperson Holm called the Housing and Redevelopment Authority Meeting to order at 8:10
p.m.
MEMBERS PRESENT: William Holm
Gordon Backlund
Kyle Mulrooney
Elizabeth Showalter
Rachel Schwankl
OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director
Scott Hickok, Community Development Director
Shane LaFave, Roers Companies
ACTION ITEMS
1. Approval of Expenditures
MOTION by Commissioner Showalter to approve the expenses as submitted.
Seconded by Commissioner Mulrooney.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIR HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY.
2. Approval of June 4, 2020 Meeting Minutes
MOTION by Commissioner Showalter to approve the June 4, 2020 minutes as
submitted. Seconded by Commissioner Schwankl.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIR HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY.
3. Amendment to Sherman and Associates Agreement – Main Street NE
Paul Bolin, HRA Assistant Executive Director, stated that after three years and 5-6 application
rounds, Sherman and Associates was finally awarded $10.7M in tax credits to move forward with
the third and final building at the rail station sites. All 71 units will be affordable to those making
60% of area median income. The city of Fridley is at 63% of area median income so nearly one
half of the households in Fridley would qualify to live in this building. Staff recommends approval
of resolution number 2020-07 amending the development agreement, providing Sherman and
Associates until December 31 to exercise their option to purchase the parcel.
Housing and Redevelopment Authority Meeting of August 6, 2020 2
MOTION by Commissioner Showalter to Amend the Sherman and Associates Agreement.
Seconded by Commissioner Schwankl.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIR HOLM DECLARED THE MOTION
CARRIED UNANIMOUSLY.
INFORMATIONAL ITEMS
1. Roers/Holly Center Redevelopment Update
Paul Bolin, HRA Assistant Executive Director, stated that the Holly Center is located at
Mississippi and University and started construction in 1957 as a strip mall. In 1980’s the center
lost their luster and the owners sold the property to an investment group. The investment group
approached HRA for conduit funding and HRA ended up with ownership of the south end of the
site. Roers Companies has an agreement to purchase 6350 University Avenue. The plan is to
replace the existing center with 261 housing units and 10,000 square foot daycare center. The site
has been a high priority for redevelopment in the last two comprehensive plans. No action is
needed tonight, at the next meeting staff will bring forward a request for a TIF district creation and
development agreement will be presented for consideration.
Shane LaFave, representative Roers Companies, stated that they are continuing to develop the
proposal and investigate and research the site. They are working with designers and architects to
develop buildings that are the best use for the site. 261 units of apartment homes in the form of
studios and 1-3 bedrooms, one level of underground parking and a fair amount of surface parking.
There will be a lot of green space, kids’ playground, grilling place, gazebo, dog park and two
entrances to underground parking. Multiple outdoor patio spaces plus an amenity on the roof of
the building providing many options for people to get out of their apartment and be outside. The
commercial building proposal is for a daycare facility but could be a retail space, we are flexible
at this time. The building will have a look with a mix of modern and traditional and will serve the
middle population workforce housing. We are excited about this potential.
Commissioner Showalter asked what workforce housing is.
Mr. LaFave replied that it is in between affordable and market rate housing. Rent levels would
be at 80% of the higher end market rate buildings.
Commissioner Showalter asked if there should be a cap on rent in the development agreement
for the first five years to help make sure this is affordable.
Mr. Lafave replied that the term sheet mentions 80% but he is not opposed to have something in
the agreement but the more requirements, the more the city has to police it.
Housing and Redevelopment Authority Meeting of August 6, 2020 3
Commissioner Schwankl wondered if there was a way to revert ownership if they weren’t in
compliance with the 80%. Something to consider and discuss in the future.
Mr. Bolin asked if the Authority, as a whole, wanted to start telling private developers what they
should strive for as far as income goals. This particular developer isn’t pursuing housing tax
credits to make this low-income housing, as it takes 3-4 years to get those projects funded.
Commissioner Showalter would like to see some flexibility in the policy. Maybe a portion at
60% or dedicate two units for homeless individuals.
Commissioner Backlund asked if this served our needs or if we needed contractual relations to
make sure we meet goals and if that is good long-term planning for us.
Commissioner Showalter thought requirements on a developer may make it less likely for the
property to work out. Residents of Fridley are very cost burdened and she is concerned about the
quality of lower rent apartments.
Commissioner Schwankl noted that the developer is dealing with blighted property, so it is not
only a matter of affordable housing. Her concern is that they develop this building and take the
TIFF funds and turn around and sell it and the new buyer doesn’t have the same intentions as the
developer’s initial intentions.
Chairperson Holm replied that the new owner of building would have the same desire to provide
a reasonable level of occupancy rates to make it profitable for them. Their objective shouldn’t be
any different than the original owner.
Scott Hickok, Community Development Director, stated that imposing more standards isn’t the
answer. Apartment buildings cost a certain amount to build each unit. If we impose that 15 units
need to be in low income housing, they need to figure out overtime that unit is paid for. A lot goes
into a site like this to get ready for development and an incentive is necessary. Each unit cost is
$300,000 to build and they need to rent it out to pay for the unit overtime. This is a unique and
fair opportunity to hit a sector of the market that isn’t currently available.
Chairperson Holm thought the city is fortunate for a development like Sherman and Associates
to get tax credits from the State to offer affordable housing.
2. Housing Program Update
Paul Bolin, HRA Assistant Executive Director, reported this past month one senior loan was
issued and another loan through CEE funds making a total of 15 loans year to date which is ahead
of last year. Remodel Advisor Visits had three in July making nine year to date. Home Energy
Squad Visits had two in July making 29 year to date.
Housing and Redevelopment Authority Meeting of August 6, 2020 4
ADJOURNMENT
MOTION by Commissioner Showalter to adjourn. Seconded by Commissioner Schwankl.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HOLM DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:49 PM.
Respectfully submitted,
Krista Peterson
Recording Secretary