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Home My WebLink About07-14-2011 Agenda NotesHEDRA AGENDA NOTES FOR JULY 14, 2011 MINUTES nd Please see attached HEDRA Meeting minutes from the June 2 regular th meeting and June 9 workshop for your review and approval. BILLS JuneBills Mastercard$40.00Brownfields Seminar $5.09HEDRA Workshop Refreshments DCA Title$740.65Block 29 Sale –Settlement Statement Emily’s Bakery$88.06HEDRA Workshop Meal Minnesota PCA$62.50Voluntary Investigative Clean-Up –Hudson Himle Horner$6113.01Marketing Services –May Bradley Deike$731.00Block 29 Sale –Legal Services Please see attached general ledger detail for further information. BUSINESS A.Authorize Signature: Access Agreement –Hudson Manufacturing Cleanup – Dakota County. Dakota County has chosen the Hudson site for use of federal EPA investigative grant funds. The funding will pay 100% of remaining Phase II and RAP development. The value of the work is estimated at $56,000, and would complete all environmental site investigative work prior to clean up. Dakota County and its environmental contractors seek access to the building to perform the work. Please see the Access Agreementfor further information. B.DiscussAmendment to Note: Guardian Angels-Sherman Associates. Sherman Associates proposes to amend the existing $150,000 promissory note for th improvements to the former Guardian Angels Church located at 4 & Sibley Street. The proposal includes: 1)Amend and restate the Note to provide that payments will be made each year on or before March 31 commencing March 31, 2012, solely from “Surplus Cash”. Currently payments are made monthly and interest is rd accrued at 7% per annum per the 3 Amendment to the Promissory Note. The expectations of interest accrual are not presented by Sherman. HEDRA Meeting Packet - July 14, 2011Page 2 of 99 2)Surplus Cash will consist of gross operating revenue less all operating expenses, including a property management fee of 5%, reserves and amortization of the cost of capital improvements to the building over 10 years. Is the 5% fee appropriate? Is a 10 year amortization for the cost of capital improvements reasonable? How would this affect the proposed 15 year extension? What is Sherman’s expectation for accruing “Surplus Cash”. The extent and costs of the improvements are unknown. 3)Extend the maturity date of the Note to June 30, 2025 (15 years from last extension). th On September 16, 2010 HEDRA authorized signature of the 4 Amendment to the Note extending the maturity date to June 30, 2012 and requiring payment of the principal. The agreement was never signed by Sherman. In March 2011, a Notice of Default was sent to Sherman. The $150,000 note was originally issued in 2003 and has been amended several times. The value of the note with interest is $210,752.55 as of July 31, 2011. ACTION: Discuss the terms of the proposal and direct staff to draft comments to Sherman. Please see the attached letter from Sherman Associates C.Mixed Use Hard Wire Alarm – Award Contract & Commit Grant Funds st On June 1 the City held a bid opening for Mixed Use Hard Wire Alarm proposals. Respondents submitted two separate bids for the work, one for CDBG eligible projects (27 properties) and one for projects ineligible for CDBG funds (3 properties). Six responses were received with Alarm Express being the low bidder for both bids. ACTION: The Commission is asked to consider the following actions: 1) Award Contract for CDBG ineligible projects to Alarm Express for $11,205.51. 2)Commit up to $5,000 in HEDRA Mixed Use Hard Wire Alarm grant funds towards the contract for CDBG eligible projects. Funding would be used to cover the gap between the estimated project cost and available CDBG funding. Please see attached Mixed Use Hard Wire Alarm Memo and Contract for more information. HEDRA Meeting Packet - July 14, 2011Page 3 of 99 D.Industrial Park Boulevard Landscaping City Engineer Nick Egger requests HEDRA direction pertaining to Industrial Park boulevard landscape gardens. The gardens were installed as part of the Industrial Park improvements in 2009 and consist of prairie grass plantings that take time to establish. Public Works has communicated with owners on the need to allow the plantings to grow (many thought the plantings were weeds), and have staked out the right-of-way lines to demarcate the property boundary. Despite these efforts, some areas have been mowed and would need to be reestablished. Options include: 1)Seek Council authorization to restore the prairie grass and bill the property owners for this cost (Ballpark estimate is $5,000 for all affected areas). 2)Leave the damaged areas as is, but strongly discourage any otherproperty owners from mowing the prairie grass. 3)Let Industrial Park property owners maintain the right of way abutting their property as they see fit. ACTION: Discuss potential action Please see the attached memo from Nick Egger, City Engineer. E.Riverfront Addition “AKA Block 1” Land Price Greenhouse Village Senior Housing Cooperative is interested in acquiring part of Riverfront Addition from HEDRA. The property was previously known as nd Block 1 and is bounded by Tyler Street, Mississippi River, CP Rail, and 2 Street. Greenhouse proposes to construct a senior housing cooperative on the site similar to their existing project in Roseville. Further information on Greenhouse can be found at http://greenhousevillage.com/. The property was previously committed to Sherman Associates as part of a 2005 Purchase Agreement to construct 28 condominium units. Sherman failed to reach minimum presale requirements and the agreement was terminated in 2007. Greenhouse has inquired about the purchase price of the property. Dakota County has valued the property at $7.26 per s.f. Please see attached analysis ACTION: Discuss the value of the property and potential need for an appraisal Please see the attached valuation analysis F.Red Rock Corridor Transit Area Master Plan The final draft of the Red Rock Corridor Transit Area Master Plan has been completed and is attached for your review and comments. The plan will also be reviewed by the Planning Commission and City Council. ACTION: Discuss and review the Transit Area Plan HEDRA Meeting Packet - July 14, 2011Page 4 of 99 Please see the attached introduction and Hastings Chapter for more information. G. Review 2012 Levy and Budget A proposed outline of the 2012 budget has is attached for your review and comments. HEDRA is scheduled to take final action on the budget and levy at the August meeting. Please see the attached Budget Summary for more information. H.Discuss Televising Future HEDRA Meetings City Council, Planning Commission, and Parks and Recreation Meetings are currently televised through local cable access. HEDRA is asked to discuss televising meetings in the future. REPORTS A.Marketing Update Himle Horner has completed the Audit interviews. They conducted ten of these calls in all (which is a couple more than they initially intended to do, but gave a more rounded view, all while staying under budget.) they are in the process of finalizing the audit report which will provide direction when writing the actual marketing plan. A final draft of this audit report is expected from Himle Horner in Mid July. Staff will forward it on to HEDRA for review and comments at the August meeting. As for budget, Himle Horner has remained vigilant with our dollars and is currently a couple thousand under and feels comfortable with what is left to be done. Their hope is to stay under budget so that HEDRA has a little left once we get the plan to actually begin implementation yet this year. B.Hudson The last production line is up and running at the new Hudson site, all production in the old facility should be wrapping up in the next week or so. Hudson has moved much of their inventory out of the old building. They are still seeking vacation of the building by August. The City has been successful in its challenge to Dakota County for 2012 tax liability. The property has been deemed exempt for 2012 taxes. Based on payable 2011 taxes, the City has saved over $60,000. C.TH 61 Bridge All work on the bridge is on hold during the state shut down. HEDRA Meeting Packet - July 14, 2011Page 5 of 99 D.HEDRA Workshop Recap Thank you for your participation in the June HEDRA workshop. Please see the attached minutes for a summary of comments and direction. ATTACHMENTS HEDRA Minutes – June 2, 2011 – Regular Meeting HEDRA Minutes – June 9, 2011 – Regular Meeting & Workshop General Ledger Detail – June, 2011 Dakota County Access Agreement - Hudson Guardian Angels Note Restructure Proposal – Sherman & Associates Mixed Use Hard Wire Alarm Memo – John Hinzman Mixed Use Hard Wire Alarm Contract Industrial Park Landscape Memo – Nick Egger Riverfront Addition Valuation Red Rock Transit Area Master Plan HEDRA 2012 Budget Summary HEDRA Meeting Packet - July 14, 2011Page 6 of 99