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HomeMy WebLinkAboutEDA MIN 04-11-00 SpecialCOLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES OF APRIL 11, 2000 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimann at 6:05 p.m., Tuesday, April 11, 2000, in Conference Room 1, Columbia Heights City Hall, 590 40th Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: Staff Present: Robert Ruettimann, Patricia Jindra, Marlaine Szurek, Don Jolly, Gary Peterson, Julierme Wyckoff, and John Hunter Walt Fehst, Executive Director Ken Anderson, Deputy Executive Director Michelle Chalin, Parkview Villa Public Housing Administrator Randy Schumacher, Community Development Assistant ITEMS FOR CONSIDERATION A. Other Business 1) 4401 Quincy Street NE. Julienne Wyckoff stated that Gary Weeks, (an architect) and Walt Fehst, went through the house today. Ms. Wyckoff also commented that the house was structurally sound. Gordon Awsumb, Awsumb & Associates, is very interested in the property. She reported that next Thursday or Friday the Realtor and Gordon Awsumb would be getting together to draw up a proposed agreement on the property. President Ruettimann suggested that we should give the owner until the May 16~ meeting to make a decision whether to sell or not. After that meeting if the property is not sold to Gordon Awsumb, the City should make a final decision to walk away or purchase the property. It was suggested that we put it on the agenda for the April 18t~ meeting. If they do not come to an agreement, then we can take action to purchase the property. The HOME Funds are from the 1998 funding cycle and should have been expended by December 31, 1999. If the City should decide not to purchase the property, it would probably lose the HOME funds. Mr. Anderson proposed that we get the feedback of the property owners as to how they would like to proceed so that we can finalize the deal. Motion by Peterson, seconded by Szurek, to table the purchase of 4401 Quincy Street NE. property until the April 18, 2000 EDA meeting. All Ayes. MOTION CARRIED. 2) Transition Block Redevelopment Project President Ruettimann expressed to the EDA Board members his feelings that we need to £malize the agreement with the development company as soon as possible, in order to start the development this June. He also commented that he has read over the agreement carefully and he feels that the City should only be required to provide a minimum of subsidy funding in order for the EDA to go forward with this development. He then turned the floor over to Ken Anderson, Community Development Director. Mr. Anderson introduced Keith Jans, Chris Winter, and Terry Troy of Real Estate Equities to present a proposal of what is expected of the City/EDA. They suggested that the City/EDA establish a 25 year Qualified Housing T1F District for the project. Parking improvements would be an estimated $84,000 for 41st Avenue, an estimated $36,000 for Jackson Street, and an estimated $57,000 for parking onsite just west of the existing NEI building. Keith Jans reported that the Citywide Locksmith Shop will not sell the property until the City has agreed to go ahead with the development. They have a purchase agreement for the Ostrander home at 4157 Jackson Street NE. already. From NEI they have a proposal to purchase certain property to the east and northeast of their building in the works. The Purchase Agreement is subject to approval of the PUD and provided 500 stalls are available on the site. Commitments from all other properties have been received. All investors have signed agreements and funding from HUD and Care Choice are in place. The project is to start the beginning of July, 2000. Mr. Jans also noted that they have held a Planning and Zoning Commission Public Hearing in regards to the development. Seventeen recommendations were received at the meeting of which they had two that they are Economic Development Authority Minutes April 11, 2000 Page 2 concerned about. One is that the Fire Department did not have enough room to get to Building D with fire trucks, so they are working to make changes in that area. The second one is that a screen be put up between the retaining wall next to the east alley and the proposed buildings. He is also looking into this matter to try to address this. In discussion, several EDA Commissioners expressed their disappointment that the City/EDA has to use 25 years of TIF Funds for the project. Ken Anderson asked Mx. Terry Troy of Real Estate Equities to help explain to the Commissioners why it was necessary for the City/EDA to use a full 25 year term at 90% of available TIF Funds for the project. Mr. Terry Troy said that this project balances out at a $10,000,000 project for the City of Columbia Heights. Affordable Housing and Assisted Living units qualify for TIF Funds but 10 units would have to be at or below minimum wage earnings (or $23,000 maximum per year). He noted that over the years to come the state regulations could change and this amount could go up. Ken Anderson introduced Paul Steinman from Springsted, Inc. Nick Skarich was not available to be at this meeting. He was present to help answer any questions that the EDA Commissioners might have in regards to the f'mancial end of the deal. He recommended that the Board go out and actually look at some of the developments that the developer has already in place in other towns. As to the 25 years of TIF Funds for the project, Mr. Steinman responded that the Commissioners must ask themselves what could happen over the years if they would go through with the project or if they don't go through with it. The greatest negative would be how and when you recover the equity (cash) that you are putting out. He felt that the City/EDA would have limited risks in the investment. It was suggested by Mr. Steinman that the EDA should come to an agreement of what they would like the maximum number of years to be for the use of TIF funds instead of 25 years. Walt Fehst, Executive Director, voiced his opinion that he would like to continue to work with the developer to work on getting the City payback quicker. Shirley Barnes, Crest View, expressed the fact that the housing funds for Seniors from the County is very minimal and that the City, in making this decision of where the funds are to come from, should not try to raise the rent for the Senior Housing units. The Seniors could not afford the units at that point. President Ruettimann asked that we come to some conclusions and move forward. He suggested the following: 1) To f'md a way that the Developer and Springsted, Inc. could come together to help out with the 25 years of TIF money at 90% to get a faster return for the City; 2) That the Commissioners should decide if we are all committed to this project; and 3) That all Commissioners read over the Preliminary Agreement and give any comments to Ken Anderson or Walt Fehst by Friday so that they can use these comments or questions for the meeting between the Developer and Springsted, Inc. to get some clarification. Mr. Anderson brought up the fact that the Planning and Zoning Commission has submitted a recommendation for the City Council meeting of April 24~ for a decision on the rezoning, PUD, and variance for the project. MOTION by President Ruettimann, seconded by Szurek, that the EDA Director and Deputy Executive Director work with the Developer and Springsted, Inc. to make the necessary changes to the Preliminary Agreement. All ayes. MOTION CARRIED. MEETINGS The next EDA meeting is scheduled for 6:30 p.m., Tuesday, April 18, 2000 in Community Room B at Parkview Villa. ADJOURNMENT MOTION by Jinda, seconded by Peterson, to adjourn the meeting at 8:03 p.m. All ayes. MOTION CARRIED. Respectfully submitted, Cheryl Bakken Recording Secretary H:\EDAminutes\mtgnotes4-11-2000special mtg.wpd