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HomeMy WebLinkAboutEDA MIN 02-15-00COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OF FEBRUARY 15, 2000 .CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimann at 6:40 p.n~, Tuesday, Februa~ 15, 2000, in the Parkview Villa Community Room B, 965 40~' Avenue NE, Columbia Heights, Minnesota. ROLL CAL~L Commission Members Present: Commission Members Absent: Staff Present: PLEDGE OF ALLEGIANCE Robert Ruettimann, Marlaine Szurek, Gary L. Peterson, Sulienne Wyckoff, and John Hunter Don lolly and Patricia $indra Walt Fehst, Executive Director Kenneth R. Anderson, Deputy Executive Director Randy Schumacher, Community Development Assistant Michelle Chalin, Parkview Villa Public Housing Administrator Shirley Barnes, CEO Crest View Corporation ADDITIONS/DELETIONS TO MEETING AGENDA - There were no additions or deletions to the agenda. CONSENT AGENDA (These items are considered to be routine by the EDA Board of Commissioners and will be enacted as part of the Consent Agenda by one motion). A. Adopt the consent agenda items as listed below. I) Approval of Minutes - regular meeting of January 18, 2000 Move to adopt the minutes of the January 18, 2000 regular meeting as presented in writing. 2) Financial Report and Payment of Bills. a. Financial Statement - January, 2000. b. Payment of Bills - January, 2000. Move to approve Resolution 2000-02, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for January, 2000 and approving payment of bills for Janua~, 2000. MOTION by Gary L. Peterson, seconded by Maria/ne Szurek, to adopt the consent agenda items as listed. In discussion, Commissioner Hunter raised a question about the petty cash fund due to the small amount listed for certain checks for the payment of bills. For example, one was listed in the amount of 61 cents. Commissioner Wyckoff indicated that one check is prepared which will have a portion of the total amount spread over several different departments. Mr. Anderson conf~'tned that process and cited the distribution of per-diem over five or six separate departments in varying proportions. All ayes. MOTION CARRIED. REPORT OF THE MANAGEMENT COMPANY A. Michelle Chalin, Parkview Villa Public Housing Administrator. Michelle Chalin, Public Housing Administrator, presented her written management report. She indicated there have been no problems with the elevator since the January Report to the EDA. She explained the need to replace several zone valves in Parkview Villa South. She also noted that Parkview Villa North received a preliminary score of 88 ora total of 100 points on its HUD inspection. A written report is yet to be received. She explained unit 312 would be used by Millar Elevator Service Company for storage of equipment and supplies as part of the Elevator Modernization Project. Lastly, she reported that the Resident Council had selected the interior color for the elevator cabs; the Fresco, number 4207, at its meeting of February 14~, 2000. CITIZEN FORUM One resident raised questions about the ventilation for the plumbing system as there seems to be some problems with soap suds and drainage of water from certain units. Ms. Chalin noted that clogged drains have been cleared by a contractor. She also noted that the pipes were jetted clean by a contractor in June or July of 1999 for a cost of $1,300.00. Commissioner Hunter voiced concern in that if the "P" trap is not holding water, sewer gas could back up into the units. Ms. Chalin will continue to respond to the complaints. Economic Development Authority Minutes February 15, 2000 Page 2 Commissioner Szurek addressed Marian lohnson, Resident Council President, regarding her observation that dogs were defecating in the public park around the La Belle Pond. She noted that the Park was signed for people to clean up after their pets. Ms. loh~son stated she will bring up this matter at a future Resident Council meeting. RECOGNITION~ PROCLAMATIONS~ PRESENTATIONS, GUEST?, - None. PUBLIC HEARINGS - None. ITEMS FOR CONSIDERATION A. Other Resolutions - None. B. Bid Considerations - None. C. Other Business 1) Property Acquisition Priorities. A. HOlVlE Program Status Report - Transfer Funds. Mr. Anderson distributed a memorandum from Delores Strand regarding some background on the John Hemak home (4401 Quincy Street NE) as the former owner of''Northeast TV" at 811 44~ Avenue N.E. President Ruettimann directed Mr. Anderson to introduce this item. Mr. Anderson stated that this item was on the agenda to seek Board authorization to transfer $17,500 in funds from the 1999 EDA Fund 204 to the 2000 EDA Fund 204 Budget. Mr. Schumacher presented the history of the proposed HOME Program Project and the 1998 award of $70,000 in HOME Funds to acquire two properties on our scattered site Tax Increment Financing (TIF) list. The HOME Program requires a minimum ora 25% match of local funds. In addition to the local match requirement the appheation noted we would make the properties available to Habitat for Humamty to construct two affordable single family homes on these lots. The program also requires a voluntary sale basis and required that low income homeowners occupy the homes for a 15 year period. He reported that staff prepared a list of the six most affordable homes to acquire on the scattered site TIF list. He spoke with property owners of all six properties. None were willing to participate. One homeowner had a double lot that could be subdivided to allow Habitat to consmact two homes. However, sufficient fimds did not exist to fund the required costs. He stated Habitat has agreed to provide funds of up to $21,000 for the acquisition of 3913 Polk Street owned by the EDA. The two lots that would also be conveyed as part of this transaction would allow Habitat to construct three, three or four bedroom homes on these properties. He stated the proposed acquisition price for the subject home was within 4% of the Anoka County estimated market value for tax purposes. Commissioner Szurek stated she was not interested in selling more lots to Habitat for Humanity. In the past, only families from Columbia Heights had moved into homes on the other lots sold by the City to Habitat. Because local tax dollars are being used it was her opinion that this should benefit local Columbia Heights residents and it was her understanding that Habitat had stated it would. Mr. Schumacher had mentioned that he had brought up that issue with Habitat and they stated that due to the Fair Housing Laws they were not allowed to stipulate that only Columbia Heights residents could purchase the homes. However, with aggressive marketing in Columbia Heights to prospective participants, it would be more likely that a Columbia Heights resident would move into the available homes. President Ruettimann noted that the homeowners must agree to participate in the Habitat Program which requires a significant contribution of time in remodeling or constructing the home. Mr. Schumacher noted the advantage of having the new home construction would be the TIF revenue which could potentially be generated. Commissioner Peterson asked ff something comes up in the next 10 to 15 days would we be at a point of no return. Mr. Schumacher indicated that we anticipated bringing a signed purchase agreement for Board action to the March, 2000 meeting. Mr. Fehst asked if other parties on the list would be interested in the sale of their home in the future. Mr. Schumacher rephed that they may and described the conditions that applied to the other properties and why the other property owners were not interested in the sale of their properties at this time. Commissioner Wyckoff noted that this is the former house of John Hemak, who is a prominent community member, therefore, the house may have some historical significance. She recognized that the home needed a new driveway and roof repair. Her instincts told her that she would regret the loss of this home to the community because of its character, heritage, and history. She suggested it could be used as a Polish American Heritage Museum. She also spoke with Delores Strand of the Sister Cities Committee who thought the house should also be saved. She also asked if HOME funds could purchase a property for some other use other than for conveyance for Habitat for Humanity. It was her belief that this was not a good lot for Habitat due to the traffic and location. Nh'. Anderson indicated the Building Officials opinion abeut this particular structure was that it was not a sound structure and Economic Development Authority Minutes February 15, 2000 Page 3 should be demolished. President Ruettimana directed Deputy Executive Director Anderson to provide a report to the Commissioners within two weeks identifying the condition of the building at 4401 Quincy Street. Anderson discussed the need to receive an Environmental Report, Historical Society Report, and the need to prepare a One for One Replacement Program related to the HOME program. Further discussion followed. MOTION by Ruettimann, seconded by Peterson, to authorize $17,500 for the 1999 HOME Grant application to be transferred from the EDA Fund 204, 1999 Budget Expenditures to the EDA Fund 204, 2000 Budget provided the transfer pass the test of regular City practices and receives City Finance Director approval. In discussion, President Ruettimann stated that these funds would need to go into fund balance or we would need to amend the budget. Mr. Anderson stated this suggested motion would provide authorization from the Board to amend the budget. Commissioner Hunter asked if the situation was one in which" we use it or lose it" regarding the HOME Funds. Mr. Fehst replied the funds must be used for construction of two homes for Habitat for Human/ty. Al1 ayes. MOTION CARRIED. B. CDBG Program. Mr. Anderson stated that staff was seeking EDA and City Council policy direction as to which properties should receive high priority for acquisition using the CDBG Commercial Revitalization Program. Anderson stated the City was anticipating receipt of the final copy of the Master Redevelopment Plan for downtown Columbia Heights by February 25, 2000. Anderson referred to the pr~'sentation boards prepared by SRF Consulting Group regarding potential areas that could be targeted for acquisition in the downtown area. In terms of defining priorities, there were two basic options. The first would for the City/EDA to pursue sites on a random basis as opportunities became available to do so provided they were substandard, non-conforming, etc. The second option would be to acquire properties that corresponded to the Downtown Redevelopment Plan, Phase One proposal for implementation and acquisition of key sites. Discussion followed. Consensus of the Board was to have staff provide the f'mal report for review prior to identifying site acquisition priorities. Mr. Anderson indicated that approximately $82,000 was available in funds which must be spent by December 31", 2000 and approximately $150,000 will be available to be used between July 1~, 2000 and December 31, 2001. C. CDBG Housing Rehabilitation Program. Mr. Anderson indicated that there were four Deferred Grant/Loan applications prepared by Community Revitalization Resources that were ready to be forwarded to Anoka County subject to Board approval and authorization of funding. MOTION by Wyckoff, seconded by Peterson, to approve the CDBG Housing Rehabilitation Grant/Loan application for 4411 Madison Street N.E. ia the amount of $5,340 plus outdoor plumbing by a plumbing contractor for an additional fee not to exceed $ I00 for housing rehabilitation to Blaine Heating & Air and Center for Energy and Environment subject to meeting all program requirements; and furthermore, to direct staff to submit the loan application to Anoka County and to authorize all related expenses to be reimbursed from Fund 202-46350-4600/ 3050. All Ayes. MOTION CARRIED. MOTION by Szurek, seconded by Wyckoff, to approve the CDBG Housing Rehabilitation Grant/Loan application for 4518 Monroe Street NE in the amount of $15,610 for housing rehabilitation to A-Z Contracting, Window Lite, and Center for Energy and Environment subject to meeting all program requirements; and furthermore, to direct staff to submit the loan application to Aaoka County and to authorize all related expenses to be reimbursed from Fund 202463504600/3050. Commissioner Peterson raised a question about the addition on the total costs. The addition was correcfi All ayes. MOTION CARRIED. MOTION by Peterson, seconded by Szurek, to approve the CDBG Housing Rehabilitation Grant/Loan application for 4021 Washington Street NE in the amount of $2,775 for housing rehabilitation to F&S Remodeling Services and Center for Energy and Environment subject to meeting all program requirements; and furthermore, to direct staff to submit the loan application to Anoka County and to authorize all related expenses to be reimbursed from Fund 202- 463504600/3050. All Ayes. MOTION CARRIED. MOTION by Hunter, seconded by Wyckoff, to approve CDBG Housing Rehabilitation Grant Loan application for 4502 Washington Street NE in the amount of $17,375 for housing rehabilitation to F&S Remodeling Services and Center for Energy and Environment subject to meeting all program requirements; and furthermore, to direct staff to submit the loan application to Anoka County and to authorize all related expenses to be reimbursed from Fund 202- 46350-4600/3050. All ayes. MOTION CARRIED. Economac Development Authority Minutes February 15, 2000 Page 4 2) EDA/HRA Transfer Update. Mr. Anderson reported that staff received written correspondence from HUD regarding items that needed to be submitted to transfer the Section 8 Program from the EDA to the Metro I-IRA. He also noted that HUD was requiring completion of the transfer from the Columbia Heights HRA to the Columbia Heights EDA prior to completing that request. He also stated that forms were submitted to HUD/n August of 1999 with follow up information provided in October 1999. Staffhas repeatedly requested a status update from HUD which was f~rst received last week. Staffwill be proceeding with the completion of required forms and will be coordinating a meeting with EDA legal counsel and HUD legal counsel regarding this matter. Mr. Fehst indicated that it is our desire to move the transfer time line ahead as quickly as possible and ff satisfacto~ progress isn't forthcoming he would encourage we contact Ted Mondale, Chair of the Metropolitan Council, and Representative Bill Luther to get involved to speed this process. He noted we currently have no full-time staff person providing day to day services for the Section 8 Program. President Ruettiman indicated that it was his belief that we did not need a separate I-IRA to take action because our EDA was the Columbia Heights HRA also. 3) Section 8 Report. Mr. Anderson presented the Section 8 Report as presented in writing. The Board acknowledged receipt of the report. " 4) CDBG/MHFA Report. Mr. Anderson noted that the transfer of the CDBG/MHFA Programs to Community Revitalization Resources (CRR) was completed and that future meeting agenda would omit a CDBG/MI-IFA written report. The Board acknowledged receipt of the CDBG/MHFA Report as presented in writing. ..ADMII~STRATIVE REPORTS 1) Report of the Deputy Executive Director. Mr. Anderson noted that an application had been submitted by Anoka County on behalf of the City of Columbia Heights for the Minnesota Cities Participation Program (MCPP) for t-u-st time homebuyers. Funds should be available in April or May of 2000. A larger allocation should be made available to Anoka County then that which would be provided to the City of Columbia Heights in a separate application. He also reported an application had been submitted to the Minnesota Housing Finance Agency for the Commumty Fix-up Fund Program. This program would provide loan funds to homeowners making incomes of up to $73,140 with a maximum loan amount of $35,000 to fix up Cape Cod or Rambler style homes constructed earlier than 1970. This application was to be provided jointly on behalf of the fourteen other cities which funded the Remodeling Plan Book for Post WWH Houses. He also said a moratorium has been put into place for 6 months for telecommunication devices and antenna towers in the City and a 120 day moratorium was placed on all changes in land use for commercial zoned property within the City. Finally, the Annual Report will be forwarded by mail once it is submitted to the City Manager on or before February 23fa, 2000. President Ruettimann raised the issue of resident membership on the EDA. Anderson replied that a legal opimon was received by staff from the City Attorney's office, and it was forwarded to the Mayor and City Manager for review and consideration. Mr. Fehst indicated some concern that the Mayor would be forced to appoint anyone who applied regardless of their qualifications to serve in the somewhat complicated nature of EDA affairs. Anderson indicated/he Minnesota NAHRO was proposing special legislation to address this matter and perhaps it would be best to wait to establish procedures for the appointment until after the legislative session is completed. MEETINGS The next EDA meeting is scheduled for 6:30 p.m., Tuesday March 21 2000 in Community Room B at Parkviexv Villa. ' Economic Development Authority Minutes February 15, 2000 Page 5 AD$OIYRNMENT President Ruettimann adjourned the meeting at 8:20 p.m. Assistant Secretary H:~EDAminutes~mtgnotes2-15-2000.wpd