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HomeMy WebLinkAboutEDA MIN 03-21-00COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OF MARCH 21, 2000 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimarm at 6:40 p.m., Tuesday, March 21, 2000, in the Parkview Villa Community Room B, 965 40t~ Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: Staff Present: PLEDGE OF ALLEGIANCE Robert Ruettimann, Patricia Jindra, Marlaine Szurek, Don Jolly, Gary L. Peterson, Julienne Wyckoff, and John Hunter None. Walt Fehst, Executive Director Ken Anderson, Deputy Executive Director Michelle Chalin, Parkview Villa Public Housing Administrator Randy Schumacher, Community Development Assistant Mel Collova, Building Official 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). 1. Adopt the consent agenda items as listed below. 1) Approval of Minutes - regular meeting of February 15, 2000 Move to adopt the minutes of the February 15, 2000 regular meeting as presented in writing. 2) Financial Report and Payment of Bills 1. Financial Statement - February, 2000 2. Payment of Bills - February, 2000 Move to approve Resolution 2000-03, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for February, 2000 and approving payment of bills for February, 2000. MOTION by Pat Jindra, seconded by Marlaine Szurek, to adopt the consent agenda items as listed. All ayes. MOTION CARRIED. REPORT OF THE MANAGEMENT COMPANY 1. Michelle Chalin, Parkview Villa Public Housing Administrator. Ms. Chalin reported that the sensors were replaced on the garage door. She has gone out for bids to assess the problem that they are having with the clogged kitchen sinks from the Drain Doctor and Cedar Plumbing companies. The annual Fire Department inspection was done on March 13, 2000. They will begin unit inspections in April 2000. Millar Elevator Service Company is using Apartment 509 to store their equipment and Apartment 312 is vacant and will be occupied by Phyllis Anderson on April 1, 2000. A resident's vehicle was stolen from the front parking lot in the early morning hours of March 8, 2000. Just Sunday evening March 19~h - Saturday night/Sunday morning, someone got into the garage and vandalized approximately 12 to 15 vehicles. The damages were limited to car windows on most vehicles. She is working with the Columbia Heights Police Department to complete the investigation and offer suggestions to prevent further problems. CITIZEN FORUM Many of the Parkview Villa North residents were present to voice their concerns about the garage vandalism over the weekend. An elderly gentlemen expressed his concern that both the front sliding door and the side door can easily be opened even though they are locked. The front door doesn't close enough so you can just push it open. The side door you can use any credit card to slide through the door slide to get into it. Another resident asked for a deadbolt to be put onto the front door and the garage could use a camera to tape who is vandalizing the garage. The residents also asked to have locks replaced on the stairwell doors. It was also brought up that last June it was brought to the City Planner to check into getting a security camera installed into the garage area. Mr. Anderson responded that his staffhad just received notification from the State HUD office that funds were not available for this project. He also reported that two years ago we did go out for quotes for the cameras for the building and garage and they ranged from $6,000 to $8,000. Sufficient funds were not included in the budget at that time either. President Ruettimann asked Walt Fehst about the new proximity reader security system for entry into the City Hall. Mr. Fehst reported that we haven't had any problems with the new system. President Ruettimann then asked if Walt Fehst and Ken Anderson could work together to get a quote from the company that installed the City's security system for the Parkview Villa complex also. Mr. Fehst will also get a locksmith to change the door locks. RECOGNITION, PROCLAMATIONS, PRESENTATIONS, GUESTS - None. PUBLIC HEARINGS 1. Adoption of a Policy and Criteria for Granting Business Subsidies. President Ruettimann opened the public hearing at 7:20 p.m. Ken Anderson presented this Policy and Criteria that are required for any project that the EDA would undertake dealing with tax increment fimds or other assistance equal to or exceeding $25,000. We would need to review each Business Subsidy on a case by case basis. The proposed policy has been prepared as liberal as possible to allow the EDA as much discretion as possible in the future. Mr. Anderson reported that it is a State mandated policy. President Ruettimann expressed his feelings that he felt this policy was more unnecessary paperwork to be filled out. Walt Fehst agreed with Ken Anderson that this is a mandatory policy that is required by the State to be done. President Ruettimann expressed his thoughts that we should have the City Attorney look at the Policy and bring it back to the April meeting for further consideration. MOTION by Gary L. Peterson, seconded by Pat Jindra, to table this policy until the April meeting at which time they can review the notes from the City Attorney in regards to this policy. All ayes. MOTION CARRIED. ITEMS FOR CONSIDERATION 1. Other Resolutions - None. 2. Bid Considerations 1) Approve Contract for Pest Control Services for Parkview Villa. Michelle Chalin reported that it would be $750 per year plus a $50 one time startup fee. The fees would be divided between both Parkview Villa locations (2/3 to North and 1/3 to South). Our old Pest Control Service (Action Pest Control) was not doing the service needed per the contract with them. Staff recommended that we approve the contract from Adam's Pest Control service. In discussion, Julienne Wyckoff was concerned as to whether this system of Pest Control is okay for the pets in the building. Ms. Chalin reported that the residents will be getting advanced notice as to how the system will work and what to keep the residents pets away from. Mr. Hunter questioned that if Action Pest Control was not performing their duties under the contract, were funds returned to the EDA? Ken Anderson reported that Action Pest Control did try to bill the EDA for the contracted service and we refused payment due to breach of contract. They have also been notified that we will no longer be using their services in the future. Economic Development Authority Minutes March 21, 2000 Page 3 MOTION by Gary L. Peterson, seconded by Marlaine Szurek, to award the Contract with Adam's Pest Control, Inc. to provide pest control services based upon their low, qualified, responsible bid in the amount of $750 plus the one time start up fee of $50 with funds to be appropriated from 203-46330-4000 in the amount of $536 and 213-46340-4000 in the amount of $264; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. MOTION CARRIED. 3. Other Business 1) Transition Block Project Update. Keith Jans and Chris Winter were present from Real Estate Equities to present an update on the project. Their main focus at this point was on the parking agreement. He demonstrated through the use of drawings that they had increased the number of parking spaces available to the project. A total of 503 parking stalls (422 on-site stalls and 81 stalls in the area of 41st and Jackson) will be installed. In order to accomplish this they had to remove the for-sale townhomes. Mr. Jans reported that the EDA and City would be responsible for the following: construct the diagonal parking pieces, striping and signage for the parallels, as well as the striping for the diagonals and for parallel parking on the street. In discussion, President Ruettimann expressed his concerns with the cost of gas going up this year. He asked if it is necessary for the City to commit to this project now or should we possibly wait for a year or two until the rates go down. Keith Jans commented that the contractor would not be able to go through with this project if it was held up for a year or two. President Ruettimann was also concerned about NEI's contribution to the parking lot for their business. What will be their contribution? Ken Anderson and Keith Jans both responded that they wouldn't be contributing anything. However, the City could recover the parking costs by the use of the curbside meters along the boulevard, for example. President Ruettimann asked what is the time frame for the bond or start date? Keith Jans responded that realistically 90-120 days. There is the TIF funds, bond finance, and development financing to be received once the plan is approved. A June 1, 2000 start date is planned for the rental townhouses. President Ruettimann asked what the City's obligation to the project was? Ken Anderson reported that the parking and the TIF funds are the EDA's obligation as well as donating land at 4150 Central and possibly 4656 Monroe St. He also commented that if TIF revenues are not sufficient, the City would have to come up with funds from another source as currently proposed. A question was raised as to what the developer is contributing. Keith Jans did not know the exact figures at this time. Ken Anderson suggested that an EDA member, such as President Ruettimann meet with Real Estate Equities to go over the figures within the next 2 weeks. Consensus of the Board was to hold a special meeting on April 11, 2000. 1) Update of 4401 Quincy Street NE. Randy Schumacher reported that we applied for and received $70,000 in HOME funds in 1998. This program requires a 25% local match. We have started to discuss with the property owners entering into a purchase agreement for the land. Staff has documented materials that state the property does not qualify as a historical site as previously thought. Our Building Official and DuAll contracting did a study or evaluation of the property. The Building Officials report states that the property has serious structural problems and recommends the demolition of the property and that Habitat for Humanity be allowed to rebuild two homes on the property. The Du All Economic Development Authority Minutes March 21, 2000 Page 4 quote suggests that they can restore the existing home to its original state for a rough estimate of $53,000. Gary L. Peterson expressed his concern that $53,000 is not nearly enough money to restore this home. Julienne Wyckoff responded that she had talked to the owner of the property today. She (Ms. Pikala) was not aware of the fact that the property could be restored and was very upset that they may have signed the purchase agreement with the City of Columbia Heights/EDA. Mr. Johnson, who is representing a real estate company, was present at the meeting and added that a lot of people have shown an interest in the property and that they were concerned with the demolition of the property as they still feel that this is a historic building. Mr. Ruettimann suggested that a vote be postponed until we hold a meeting on Tuesday, April 11, 2000 to discuss this matter further. He also requested that we hold off on further action to purchase the property until after that meeting for a final decision as to purchase it or not. The Building Official, Mel Collova was present and added that he would have an architect/structural engineer go through the building before the April 11, 2000 meeting to evaluate the property. MOTION by Wyckoff, seconded by Jolly, to table this decision for two more weeks. All Ayes. MOTION CARRIED. 2) Community Development Block Grant (CDBG) Unspent 1997 Funds. Ken Anderson reported that he has attached a letter from Jennifer Bergman in regards to the Community Development Block Grant Unspent 1997 Funds. Mr. Anderson reported that all 1997 funds need to be spent or the City will lose the funds. He also reported that we have projected costs of over $100,000 in grants or loans that are in process or soon to be approved. We are waiting for all of the contractors to submit their bills before we can send the reimbursement requests into the County by May 9, 2000. Staff doesn't anticipate any problems with this and that this is being presented to the Commission on an information basis only. 3) Adopt CDBG Program Housing Rehabilitation Procedural Guide. Ken Anderson presented this Procedural Guide to the Board. In discussion, President Ruettiman noted that we would be charged 14% of our allocated funds to process the Procedural Guide. He also noted that the document was made up and documented by them and that our City Attorney has not reviewed the guide yet. President Ruettimann and Walt Fehst both requested that the City Attorney look over the Procedural Guide before we bring the guide to a vote. MOTION by Peterson, seconded by Jolly, to table the Adoption of the Community Development Block Grant Program Housing Rehabilitation Procedural Guide until the April, 2000 meeting. All Ayes. MOTION CARRIED. 5) Community Development Block Grant/Grant Loans. Ruettimann asked if there was any discussion in regards to the attached CDBG/Grant Loans. No discussion. MOTION by Szurek, seconded by Hunter, to approve the CDBG Housing Rehabilitation Grant/Loan application for Grant #C1998-03 in the amount of $4,085 for housing rehabilitation to Norm Cook 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 Economic Development Authority Minutes March 21, 2000 Page 5 to authorize all related expenses to be reimbursed from Fund 202-46350-4600/3050. MOTION CARRIED. All Ayes. MOTION by Wyckoff, seconded by Szurek, to approve the CDBG Housing Rehabilitation Grant/Loan application for Grant #C 1997-02 in the amount of $15,508 for housing rehabilitation to B&B Roofing Services, TC Exteriors, Window Lite, AM Landscape Co., 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 Jolly, seconded by Hunter, to approve the CDBG Housing Rehabilitation Grant/Loan application for Grant #C1997-06 in the amount of $16,595 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. MOTION by Hunter, seconded by Jindra, to approve the CDBG Housing Rehabilitation Grant/Loan application for Grant #C 1997-13 in the amount of $19,020 for housing rehabilitation to Straitline Construction 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 Peterson, seconded by Jolly, to approve the CDBG Housing Rehabilitation Grant/Loan application for Grant #C1997-04 in the amount of $18,761 for housing rehabilitation to Olson Plumbing, CRI, Albrecht Co., 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. 6) Establish FSS Program Interest Rate for 2000. Mr. Anderson reported that we have established an FSS Program for seven participants who are on our Family Self Sufficiency Program. We established a program where we average the interest rate that each of the five area financial institutions have for their basic savings account. From this evaluation, we would like to use an interest rate of 1.43% for the funds that are deposited into the FSS accounts for the year 2000. MOTION by Szurek, seconded by Wyckoff, to set an interest rate at 1.43% retroactive to January 2000 for the Family Self Sufficiency Program escrow accounts. All Ayes. MOTION CARRIED. 7) Review Columbia Heights Economic Development Authority and Community Development Department Annual Report The EDA and Community Development Department presented the report that they prepare each year for the acceptance of the EDA Board. President Ruettimann asked if there was any discussion in regards to the Annual Report of the Economic Development Authority and Community Development Department. It was noted that President Ruettimann and the rest of Economic Development Authority Minutes March 21, 2000 Page 6 the Board members wanted to thank everyone involved in putting together the Annual Reports. They felt that the reports were very well put together this year. 8) Section 8 Report. Mr. Anderson presented the report made out monthly by Richard Rothschild, our Occupancy Specialist. He noted that this month we have 31 Vouchers and 14 Certificates issued for a total of 45 and that is an increase of 9 over the last month. Staff has contacted the Minneapolis Public Housing Authority to absorb their 9 people that have been porting into the City of Columbia Heights. This improves our utilization to 90% which has been running about 72% and we would like it to run over 95%. Question was raised in regards to moving the Section 8 program to Metro. Ken Anderson reported that Walt Fehst, Randy Schumacher and himself have recently had discussions with HUD about the transition. Walt Fehst felt that we are very close to a final transfer of the program. Realistically, we are looking at June 1, 2000 for the transfer. ADMINISTRATIVE REPORTS · A. Report of Deputy Executive Director. 1) Downtown Master Plan Update. Ken Anderson presented the Downtown Master Plan as an informational item to the Commission. Some changes have been made to the original plan. It was sent back to our consultant to have the changes made and we will have the final draft available at the next EDA meeting in April, 2000. 2) EDA/HRA Tax Levies & Creation of EDA Randy Schumacher and Ken Anderson are working to complete the transition from HRA to EDA which should have been done years ago. It was requested of our Attorney's that we get written documentation of the HRA to EDA change over in a formal setting. This is done now and staff reported that we have all of the official paperwork completed and submitted to HUD for the final transmittal. They are close to finalizing this transformation. Staff recommended the Commissioners maintain the written correspondence which documents the proper creation and power to levy taxes by the EDA using its HRA powers and by the City on behalf of the EDA. 3) Tax Increment Financing Cash Flow Analysis Annual Update Ken Anderson reported that the City of Columbia Heights has requested a proposal for the completion of the City's TIF reporting forms to the State Auditor and also an update to the City's TIF District Cash Flow Analysis. Springsted would like to propose an hourly billing with a not to exceed amount of $2,900. This would include an update of TIF projections and recommendations for all of the City's TIF Districts. MEETINGS A special meeting will be held on April 11, 2000, 6:00 p.m. at the City Hall Conference Room 1. The agenda will be limited to discussions on 4401 Quincy St. N.E. and NEI Property/Transition Block Development Project. The next EDA regular meeting is scheduled for 6:30 p.m., Tuesday, April 18, 2000 in Community Room B at Parkview Villa.