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HomeMy WebLinkAboutEDA MIN 08-16-00COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY(EDA) REGULAR MEETING MINUTES OF AUGUST 16, 2000 CALL TO ORDER- The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimann at 6:32 p.m., Wednesday, August 16, 2000, in the Parkview Villa Community Room B, 965 40~ 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 and John Hunter Julienne Wyckoff and Gary L. Peterson Ken Anderson, Deputy Executive Director Randy Schumacher, Community Development Assistant Anita Kottsick, Parkview Villa Public Housing Administrator Karl Wilson, Parkview Villa Public Housing Administrator Walt Fehst, Executive Director Cher Bakken, Secretary ADDITIONS/DELETIONS TO MEETING AGENDA. 9-C-4 and 9-C-5 CONSENT AGENDA. A. Adopt the consent agenda items as listed below: · 1) Approval of Minutes. a. Regular Meeting of August, 2000. 2) Financial Report and Payment of Bills. a. Financial Statement for August, 2000 b. Payment of Bills for August, 2000 MOTION by Pat Jindra, seconded by John Hunter, to approve Resolution 2000-10, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statement for July, 2000 and approving payment of bills for the month of July, 2000 with the amendment changing the month from August, 2000 to July, 2000 as printed in the agenda. All Ayes. MOTION CARRIED. 3) Approve Payment #3 & g4 to Millar Elevator Service Company Mr. Anderson explained that this was a document for approval of Application 3 and 4 for a total of $90,105. The City keeps 10% of each pay application for retainage until the project has been completed, inspected and approved. Staff is recommending payment of Application #3 and g4. In discussion, John Hunter stated his understanding of the retainer policy for the Millar Agreement was that it would be 10% ot the total contract for one year after completion for one year, not 10% ofeadh application fee that the City retains. Mr. Anderson will check into this percentage and report back to the EDA Commission. MOTION by Marlaine Szurek, seconded by John Hunter, to accept the work for Pay Applications #3 and g4 and to authorize payment of $90,105 to Millar Elevator Service Company of Cleveland, Ohio. All Ayes. MOTION CARRIED. 4) Section 8 Report. The Section 8 Certificates will be changed to Vouchers by October 1, 2000. The number of tenants on the program has changed dramatically due to the current staff clarifying which tenants are actually on the Columbia Heights Section 8 program. The report states that there are currently 32 Vouchers and 4 Certificates for a total of 36 which is a decrease of nine from last month. This decreases our utilization to 72 percent. The reason for the significant reduction is that several participants were reflected as active by the previous staff member. When they where actually inactive. These participants should have not been in the utilization report. We are still targeting the September 1, 2000 date for the transfer to Metropolitan Council. MOTION by Don Jolly, seconded by Marlaine Szurek, to receive the Section 8 report as written. Al1 Ayes. MOTION CARRIED. REPORT OF THE MANAGEMENT COMPANY. A. Anita Kottsick, Parkview Villa Public Housing Administrator. The Elevator Modernization project is moving along ahead of schedule according to one of the servicemen that she had recently talked to. The EDA had requested that an inspection of the circuit panels be done and added to the Move Out Unit Preparation Checklist. She reported that this has been added and Bill Gault has already started checking them as Economic Development Authority Minutes August 16, 2000 Page 2 of 5 people have moved. Anita wanted to correct the date that was printed in her occupancy report for when she will be meeting with Marion Booth. It will be on the 17' of August. She also wanted to introduce Kari Wilson as the Housing Administrator for Parkview Villa to be working in the morning hours. Anita will be spending her afternoons at the Parkview Villa office. Karl will be introduced to the residents at their meeting on August 14th. CITIZEN FORUM. Ruth Borris, Unit 123, expressed her concern about the garbage smell behind Parkview Villa. She has contacted the City Hall and the Anoka dispatcher in this regard. She Was also concerned about the handicapped residents being on the seventh or eighth floor. Ruth suggested that they should not put these residents with medical problems up that high in the building because they could never get out if there was a fire and the elevators were inoperative. Ruth Hillested, Unit 310, asked for a report on the garage security. Mr. Anderson reported that we need to get a floor plan · for each unit to provide this information to the company that will be quoting the job. Ken has not been able to fred a copy of the plan for the south building. Pres. Ruettimann suggested that Ken contact HUD or the County offices to obtain the plans. Ruettimann asked that we get a report back to him by'next week so that he can report back to the resident the status of the security system that was talked about last month. In the meantime, some common ideas were shared about the tenants safety exiting and entering the building. Opal Baker asked what store was going in next to Stroncek's Eagle Drag Store on Central Avenue. Mx. Anderson stated that a driving center is going in on one side and the other half has not been determined yet. Ms. Baker stated that the construction going on is just adding to the noise. Mr. Hunter received a call from a citizen of the community wondering if a dirty book store was going into that unit. He has checked into it and it is truly a RUMOR! RECOGNITION, PROCLAMATIONS, PRESENTATIONS~ GUESTS - None. PUBLIC HEARINGS - None. ITEMS FOR CONSIDERATION. A. Other Resolutions - None. B. Bid Considerations - None. : C. Other Business. 1) MI:IFA Loan A Minnesota Housing Finance Agency Minnesota Fix-Up Fund loan that was originated by the EDA on December 12, 1997, to Shemey and Catherine Gafkjen in the amount of $6,527.16. The property was sold in October of 1998 and the loan went into default. Shemey payed 1/3 of the remaining balance at closing and stated that Catherine Gafkjen's daughter received 2/3 of the property sale proceeds, so the remaining balance of the loan due should be received from her. Ken Anderson consulted an attorney for advice. The City Attorney suggested that the EDA pay Compu-Link Loan Service, Inc., for the unpaid amount of $4,377.80 as of 8-15-2000, plus $ .66 daily per diem and $350.00 to MHFA. In discussion, Mr. Ruettimann would like a copy of every mortgage that is not filed with Anoka County by the next EDA meeting in September, 2000. He also requested that Mr. Anderson write to the County to receive a report of any mortgages that are not filed currently. Ken asked if we could provide a list to the Commissioners of just the mortgages that we are having trouble with? Pres. Ruettimann stated that he would like to have all of the 26 or 27 mortgages open with the City manually checked to get a report of the status of all of them. Pres. Ruettimann requested that we table this motion until next month when a report can be provided to the Commissioners of the current status of all 26 or 27 open mortgages with the City of Columbia Heights. 2) Budget Meeting Mr. Anderson proposed that a special meeting be scheduled to discuss the 2001 Budget. Currently the Budget is not ready for review. He assured the EDA Commission that the Budget will be done sometime in the next week. Pres. Rueinmann suggested that the meeting be scheduled September 15, 2000, that only the Final Budget is discussed, nothing else that night so that the Budget is ready for adoption by the September 15' City Council meeting. Walt Fehst suggested that we schedule the budget to be presented to the EDA the first week in September. No date was scheduled at this time. Walt Fehst and Ken Anderson will schedule the EDA's reviewal meeting and let the Commissioners know of the date later. Economic Development Authority Minutes August 16, 2000 Page 3 of 5 3) Approve the Initial and Cooperation Agreement for the Transition Block Redevelopment Project. Mr. Anderson explained that this is a request from Real Estate Equities for the approval by the EDA and the City. The Agreements are related to the Transition Block Redevelopment project which includes the properties of NEI College of Technology at 825 41~ Avenue NE., the EDA's property at 4150 Central Avenue NE., Citywide Locksmithing at 4156 Central Avenue NE., and the house at 4157 Jackson Street. These two Agreements need to be executed by the EDA and the CoOperation Agreement only needs to be executed by the City. The City Council took action on the Cooperation Agreement at its meeting on August 14th and approved it subject to additional language being included. The Initial and Cooperation Agreements basically explain how the funds will be distr/buted between the Minneapolis Public Housing Authority, Metropolitan Council HRA, City of Columbia Heights, and the Columbia Heights EDA. Legal counsel for the City/EDA has reviewed the Agreements and has suggested that the EDA approve the two Agreements with the contingency or addition of the proposed language or language substantially similar and acceptable to legal counsel for the City and EDA. In discussion, it was noted the Council set a Public Hearing for September 25, 2000 to review the proposed TIF Plan and establishment ofa TIF District. Staffhas not reviewed the Tax Increment Financing Plan. August 25, 2000 is the date that the Tax Increment Financing Plan is to be presented to the School District and Anoka County in a draft form according to the f'mancial advisors outline for the proposed time schedule. President Ruettimann was concerned that the EDA signs the Agreements and the project would go through with some changes by City Council that the EDA wouldn't necessarily agree on and the contract would go through. Mr. Anderson stated that the EDA and City Council review and approve the necessary TIF Agreements. If the Planning and Zoning Commission does not approve the PUD Agreement, then the Agreement will not go through. Mr. Fehst stated that if the City and EDA approve these Agreements, the project may go through. If the TIF and/or other Agreements are not approved, nothing will be built. MOTION by Marlaine Szurek, seconded by John Hunter, to: approve the Initial and Cooperation Agreements for the Transition Block Redevelopment Project contingent on the addition of the proposed language or language substantially similar and acceptable to legal counsel for the City/EDA with the understanding that the Initial Agreement be changed to read One, two bedroom and two, three bedroom MHOP units wherever listed in the Agreement; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All Ayes. MOTION CARRIED. 4) Community Development Block Grant Housing Rehabilitation Program. Mr. Anderson explained that we received a CDBG Housing rehabilitation loan application from the Center for Energy and Environment (CEE) which needs to be submitted to Anoka County after the EDA approves the loan. The property at 4149 4~ Street NE is planning on doing roofing, windows, doors, demolish the garage, install soffits and fascia, and fix plumbing, electrical, heating, exterior painting, gutter repair, replace kitchen cabinetry, as well as make health and safety improvements to the unit. MOTION by Donald Jolly, seconded by Pat Jindra, to approve the CDBG Housing Rehabilitation Grant Loan Application for Grant gC 1997-03 in the amount of $14,475 for housing rehabilitation to Osborne Enterprises, and the Center for Energy and Environment subject to meeting all program requirements; and furthermore to authorize the Mayor and City Manager to enter into an agreement for the same. All Ayes. MOTION CARRIED. 5) Razing of Substandard Buildings. Mr. Anderson explained that the EDA has purchased three substandard properties with the intent of razing the buildings for redevelopment. The commercial building at 828 N.E. 40~ Avenue, 3950 Lookout Place and 3944 Lookout Place. The City Council has declared the dwelling at 4358 N.E. 3~ Street a Hazardous Building, under Resolution 99-15. The Building Official and City Attorney will attend Anoka County Court on August 21, 2000 to seek the permission and assess the costs to the property in the form a special assessment. Staff is asking the Board to direct staff' to draft demolition specifications for the projects, solicit bids for the projects and to direct the City Manager and Mayor to enter into a contract for the razing of the buildings with the lowest, responsible, qualified bidder. The project will be funded by 415 PIR Economic Development Authority Minutes August 16, 2000 Page 4 of 5 Abatement Funds. EDA owned properties will use CDBG Funds. MOTION by John Hunter, seconded by Marlaine Szurek to adopt Resolution 2000-59, authorizing staffto prepare specifications and solicit bids for the razing of 4358 NE 3"~ Street, 828 NE 40~ Avenue, 3944 Lookout Place, and 3950 Lookout Place and furthermore; to authorize the Mayor and City Manager to enter into an agreement for the same. All Ayes. MOTION CARRIED. ADMINISTRATIVE REPORTS. A. Report of the Deputy Executive Director. 1) Property Sale Update - 4216 Central Avenue NE. Staff received plans last week from Mr. Nedegaard for this property. Currently, the planner is reviewing the new plans for any conflict with the City Code. City Council and the Planning and Zoning Commissioners approved the plan last fall. The City Planner is reviewing the plan to see if there is any substantial changes in the plans. If so, the plans would have to go before the City Council and Planning and Zoning Commission again. In discussion, Pres. Ruettimann asked if this can possibly be sold and settled by the end of summer if there are not any significant changes in the plans? Mr. Anderson stated that the original agreement stated that this project should be finalized before the first of the year. Then we extended the agreement until spring of 2000. What staff is asking for at this time is that the EDA extend this agreement using the same terms as used last time to extend it for another couple of months. Mr. Ruettimaun wanted it recorded that the EDA did not own the property until March of 2000, so that we only had a verbal agreement with Mr. Nedegaard, not a purchase agreement. MOTION by Szurek, seconded by Jindra, that we extend the current purchase agreement between Mr. Nedegaard and the EDA until September 30, 2000. All Ayes. MOTION CARRIED. 2) Update on Acquisition of 3855 Main Street NE. Mr. Schumacher reported that he has finalized the Acquisition of 3855 Main Street NE., Columbia Heights. The closing was held on Tuesday, August 15, 2000. At this point the options are for the City Council to sell the property to the neighbors on either side at a cost of $10,000 a piece and they would be willing to remove the blighted home at their own expense thus making their property lots larger. The City Council could also sell the property to a developer to rebuild a new home on the land. Mr. Anderson indicated that the lot is 40 x 26 and approximately 5,063 sq ft. We generally consider a lot at 6,500 square feet to be a buildable lot size, however, there are provisions in the ordinance that allows you to go down to 3,900 square feet. 3) Downtown Master Plan. Mr. Anderson reported that the Downtown Master Plan was approved by the City Council last Monday night with the "Town Square" concept being the approved option. This plan will be presented to the EDA in September for approval. A copy of this Task Force initiated plan will be given to the EDA Board members next week for review. 4) Community Fix-Up Fund. Mr. Anderson reported that staff has received a copy of the letters regarding the Discount Loan Program or Community Fix-Up Funds program that will be going out to residents of Columbia Heights with Cape Cod and Rambler homes informing them of the funds that Columbia Heights has available to them for upgrading these types of homes. These homes were constructed before 1970. Household incomes must be less than $78,890 to receive an interest rate between 2 and 6 percent depending on income. These letters should be mailed out in the next week or so to the Columbia Heights residents. B. Report of the Executive Director. C. Committee/Other Reports. Pres. Ruettimann verified that all Commissioners have had a chance to read Michelle Chalin's exit report. He expressed his feelings that this is a very valid report for both the EDA and Crest View Management. The EDA's thanks goes out to Crest View Management for providing this report. Economic Development Authority Minutes August 16, 2000 Page 5 of 5 MEETINGS A. The next Regular EDA meeting is scheduled for 6:30 p.m., Tuesday, September 19, 2000 in Commu- nity Room B at Parkview Villa. ADJOURNMENT. MoTIoN. by Donald Jolly, seconded by Pat Jindra, to adjourn the meeting at 8:02 p.m. All Ayes. MOTION CARRIED. Recording Secretary H: ~EDAminutes\8 -16 -2000 mission of the Columbia Heights Economic Development Authority is Co provide 'nancial and technical assistance and resources to residential, commercial, and ,dustrial interests to promote health, safety, welfare, economic development and redevel opmen t. Memo To: From: Date: Subject: EDA Commissioners, Walt Fehst, Executive Director: Randy Schumacher, Community Development Assistant; Anita Kottsick, Parkview Villa Public Housing Administrator; Kari Wilson, Housing Manager. Kenneth R. Anderson, Deputy Director ~ September 20, 2000 Initial and Cooperation Agreement minutes from EDA meeting of August 16, 2000. The Initial and Cooperation Agreement minutes fi-om the EDA meeting of August 16, 2000 was not approved due to incon'ect wording of the motion for this Agreement. The minutes have been corrected and at this time we would like to submit them for approval with the intent that the following amendment will replace the original motion as approved on August 16, 2000. MOTION by Marlaine Szurek, seconded by John Hunter, to approve the Initial and Cooperation Agreements for the Transition Block Redevelopment Project contingent on the addition of the proposed language or language substantially similar and acceptable to legal counsel for the City/EDA; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All Ayes. MOTION CARRIED. H:\EDAminutes\Initial and Cooperation Memo