HomeMy WebLinkAboutHRA MINUTES 05282003I CITY OF ST. ANTHONY
2
0 HOUSING AND REDEVELOPMENT AUTHORITY MEETING
5 May 28, 2003
6
7 CALL TO ORDER.
8 Chair Hodson called the meeting to order at 7:00 p.m.
9
10 PLEDGE OF ALLEGIANCE.
11 Chair Hodson invited the H.R.A. and audience to join him in the Pledge of Allegiance.
12
13 ROLL CALL.
14 Commissioners present: Chair Hodson; Commissioners Sparks, Thuesen, Horst, and Faust.
15 Commissioners absent: None.
16 Also present: Executive Director Michael Morrison and City Attorney Jerome
17 Gilligan.
18
19
20 1. APPROVAL OF MAY 28, 2003, H.R.A. AGENDA.
21 Motion by Commissioner Faust to approve the May 28, 2003, Housing and Redevelopment
22 Authority Agenda as presented.
23
24 Motion carried unanimously.
0 II. CONSENT AGENDA.
27 Motion by Commissioner Thuesen to approve the Consent Agenda, which consisted of:
28
29 A. H.R.A. Meeting Minutes of May 13, 2003: and
30 B. Claims.
31
32 Motion carried unanimously.
33
34 III. GENERAL POLICY BUSINESS OF THE H.R.A.
35 A. H.R.A.Resolution 03-011, re: Lease revenue bonds for public facilities development
36 Jim Prosser, Ehlers & Associates, came forward to update the HRA regarding the lease revenue
37 bonds for public facilities development. He stated $5,530,000 in public facilities lease revenue
38 bonds had been sold. Three bids had been received. The true interest rate bid of 3.7846% was
39 accepted, which would qualify for MBIA insurance. The HRA does need to close on the
40 property prior to closing on the bonds on July 2. The excellent rating was received because the
41 insurance was purchased with an AAA rating. Also, Mr. Prosser stated that the City has strong
42 underlying credit and this is the right time to be in the market. He said that the overall interest
43 cost was roughly $ I million less than anticipated.
44
45 Mr. Prosser discussed the estimated impact on the taxpayers' property. He said that in February
it was estimated that the approximate impact on a $200,000 home would be $200. He stated the
actual cost would be 20% lower at $160. In addition, the average cost during the first year would
4 be approximately 5% lower.
Housing and Redevelopment Authority Meeting Minutes
May 28, 2003
• Page 2
2 Mr. Prosser added that the City was taking action to decertify the Kenzie district, and that alone
3 would reduce this impact by 6% and would have some impact on general property tax, as well.
4 Mr. Prosser thanked the staff and stated that this would not have happened without the overall
5 good planning of the staff.
6
7 Commissioner Sparks asked if decertification would affect only general property taxes and not
8 what the City is paying on the bonds. Mr. Prosser responded that the City would be adding an
9 additional value of approximately 6% onto the whole tax base. Because distribution would be
10 over a larger tax base, the impact upon the individual taxpayer would be less.
11
12 Motion by Commissioner Faust to adopt H.R.A. Resolution 03-011 re: lease revenue bonds for
13 public facilities development for $5,530,000 at a rate of 3.7846%.
14
15 Discussion:
16 Commissioner Thuesen stated that, because the paying agent was Wells Fargo, he felt he should
17 reveal that his wife works in that division. However, he felt he would be able to vote because his
18 wife was not working directly on the account.
19
20 Commissioner Sparks stated she had received an e-mail wondering if the City was rushing into
this project. She said the City's thinking was that this issue has been discussed and investigated
for approximately four years. Previous City Councils have been involved in it. She listed the
23 forces that had converged to make this the time to go ahead. Commissioner Sparks restated that
24 this has been a long process.
25
26 Motion carried unanimously.
27
28 B. H.R.A. Resolution 03-008. re: Authorize purchase of 3505 Silver Lake Road
29 C. H.R.A. Resolution 03-009. re: Authorize purchase of 3501 Silver Lake Road
30 Executive Director Michael Morrison stated that the Christen property was known as site one for
31 the fire station. He said an agreement had been made, which was a standard resolution. The
32 property had been appraised and the purchase prices were as listed in the copies of the letters
33 given to the H.R.A. members. He stated there was nothing to indicate backing away from the
34 environmental work.
35
36 Commissioner Sparks asked how much faith should be placed in that indication. Mr. Morrison
37 responded that the standard procedure appropriate for any personal property was used.
38
39 Motion by Commissioner Thuesen to adopt H.R.A. Resolution 03-008, re: authorize purchase of
40 3505 Silver Lake Road.
41
Friendly amendment was suggested by Commissioner Faust to include both H.R.A. Resolution
io 03-008 and H.R.A. Resolution 03-009 in the same motion.
44
Housing and Redevelopment Authority Meeting Minutes
May 28, 2003
• Page 3
1 Motion by Commissioner Thuesen to adopt H.R.A. Resolution 03-008 re: authorize purchase of
2 3505 Silver Lake Road and H.R.A. Resolution 03-009 re: authorize purchase of 3501 Silver Lake
3 Road.
4
5 Discussion:
6 Commissioner Sparks asked if the City had liability if further contamination was detected. City
7 Attorney Jerome Gilligan responded that once the site evaluation had been performed the City
8 could move forward. Chair Hodson stated that a successful Phase 1 review had been completed
9 on the property.
10
11 Jeff Oertel, Oertel Architects, came forward and stated that Braun Intertec had been on the site
12 last week. Each person involved in the Phase 1 review was comfortable with the results, and
13 they did not feel Phase 2 was necessary. Mr. Oertel proceeded to explain procedures used and
14 results obtained. He stated all borings came up clean. There was only evidence of minor spills.
15 However, he did recommend that a "Response Action Plan" be prepared in case something
16 should arise during construction. He restated that all those involved were comfortable with the
17 results.
18
19 Commissioner Faust stated that the only reason to go beyond Phase I would be if something
20 were found. Mr. Oertel said that was correct.
9 Commissioner Horst stated that one of the concerns was that the soil was not strong enough on
23 that site to hold the fire station. He questioned what had been done to address the possible need
24 for a buildup. Mr. Oertel responded that it had been ascertained that the bearing capacity would
25 be 2000 psi, which would be adequate. He said the top layers of the soil were mostly sandy clay,
26 primarily dense. He added that there was only a minor concern regarding one comer of the site;
27 however, building was not planned there.
28
29 Commissioner Horst stated that the footprints looked like some land excavation and building up
30 would be required. Mr. Oertel responded that some would be needed. More would be known
31 when a survey was received. It was advised that if more fill were needed, fill material would be
32 available in the next month or two.
33
34 Commissioner Thuesen asked if not as much soil was moved when in a situation where there was
35 a question of contaminated soil. Mr. Oertel responded that, if contaminated material were found,
36 the best plan would be to get rid of it. He added that there were two or three different ways of
37 handling it.
38
39 Commissioner Thuesen asked if a plan was needed to deal with potential psi issues. Mr. Oertel
40 stated that the soils were very easily managed. The only real concern would be if there were oil
41 leaks from any of the tanks or something was hidden that had not been found by the soil borings.
6 Motion carried unanimously.
44
Housing and Redevelopment Authority Meeting Minutes
May 28, 2003
• Page 4
1 D. H.R.A. Resolution 03-010. re: Authorize project team to proceed with design work for
2 Public Facilities Project as well as entering into a contract with Oertel Architects
3 Executive Director Michael Mornson asked Jeff Oertel, Oertel Architects, if he would address
4 the H. R. A. Mr. Oertel indicated that the schedule put forward was on a fast track because both
5 the fire station and public works department would be displaced. He felt this schedule would
6 take many weeks off the time needed. A schedule was given to the H.R.A. members.
7
8 Motion by Commissioner Faust to adopt H.R.A. Resolution 03-010 re: authorize project team to
9 proceed with design work for Public Facilities Project as well as entering into a contract with
10 Oertel Architects.
11
12
Discussion:
13
Commissioner Sparks asked Mr. Momson to address the type of supervision that would be
14
implemented. Mr. Momson responded that there would be a team approach with the architect
15
and Krause -Anderson. Someone would be at the site at all times. He indicated there would be a
16
site work bid and a building work bid. Each would be contracted out separately to get the "best
17
bang for the dollar." Mr. Morrison added that someone who represented the City would also be
18
monitoring the work.
19
20
Commissioner Sparks stated that the same people building would not be supervising. Mr.
9
Morrison said that was correct.
23
Motion carried unanimously.
24
25
IV.
STAFF REPORTS.
26
None.
27
28
V.
H.R.A. COMMISSIONER COMMENTS.
29
None.
30
31
VI.
INFORMATION AND ANNOUNCEMENTS.
32
None.
33
34
VII.
ADJOURNMENT.
35
Motion by Chair Hodson to adjourn the meeting at 7:32 p.m.
36
37
Motion carried unanimously.
38 Respectfully submitted,
39 Marjorie R. Jenkins
40 TimeSaver Off Site Secretarial, Inc
41