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HomeMy WebLinkAboutEDA MIN 09-19-00COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OF SEPTEMBER 19, 2000 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimarm at 6:37 p.m., Tuesday, September 19, 2000, in the Parkview Villa Community Room B, 965 40a' Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: Staff Present: PLEDGE OF ALLEGIANCE Robert Ruettimann, Patricia Jindra, Don Jolly, Gary Peterson, Julierme Wyckoff, and lohn Hunter Marlaine Szurek Walt Fehst, Executive Director Ken Anderson, Deputy Executive DLrector Anita Kottsick, Parkview Villa Public Housing Administrator ADDITIONS/DELETIONS TO MEETING AGENDA CONSENT AGENDA (These items are considered to be routine by the EDA Board of Commissioners and will be enacted as part oft_he Consent Agenda by one motion). Adopt the consent agenda items as listed below. 1) Approval of Minutes - regular meeting of August 16, 2000 and Special meeting of August 28,2000. MOTION by Don G. Jolly, seconded by Gary L. Peterson, to adopt the minutes of the Special Meeting of August 28, 2000 as presented in writing and table the minutes of Augnst 16, 2000 until the minutes are corrected to read as stated on the recording tape of August 16, 2000. All Ayes. MOTION CARRIED. In discussion, President Ruettimann expressed his concerns that the Initial and Cooperation Agreement motion was not written as stated at the August 16, 2000 meeting. Ken Anderson stated that the motion was changed due to the wording in the Initial Agreement being submitted to Holmes & Associates, Inc. for the Mixed-Finance Development of the Columbia Court Townhouses project. He made the change and was going to amend the minutes at this meeting. Mr. Ruettimann explained that this was not the proper procedure for handling this situation and asked staff to resubmit the minutes as stated at the October, 2000 meeting with an attached amended motion for the Initial and Cooperation Agreement section of the minutes. 2) Financial Report and Payment of Bills a. Financial Statement - August, 2000 b. Payment of Bills - August, 2000 MOTION by Don G. Jolly, seconded by Gary L. Peterson, to approve Resolution 2000-12, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the f'mancial statements for 2000 and approving payment of bills for August, 2000. All Ayes. MOTION CARRIED. REPORT OF THE MANAGEMENT COMPANY B. Anita Kottsick, Parkview Villa Public Housing Administrator. Ms. Kottsick highlighted a few things from her report. The large elevator passed inspection on September 7, 2000. However, on September 16~ the bearings burnt out which is under warranty and will be replaced. The Parkview Villa tenant annual re-certifications are taking place at this time. The Maintenance Coordinator is in the process of receiving bids on two issues, 1) to add water main shut offvalves to each floor in the North building, and 2) additional fencing at 4607 Tyler. Parkview Villa North was experiencing problems due to having to shut off the water supply for the whole building just to fix one area of the building. The intent is to have shut off valves installed on each floor. For 4607 Tyler, Bill Gault is looking into the fencing costs due to residents reporting that people are cutting through the yard at all hours of the day. Economic Development Authority Minutes September 19, 2000 Page 2 Ms. Kottsick passed out an Lntra-Building Relocation Policy to the Board members and stated that she has made some changes to the policy. A relocation fee of $125.00 shall be paid by Parkview Villa residents relocating from one unit to another within the building who were on the relocation list prior to July 18, 2000. The/.ntra relocation fee of $400.00 shall be paid by residents on the relocation list after July 17, 2000. Ms. Kottsick also invited the Board members to the Annual Fall Festival Picnic on Tuesday, September 26, 2000 at 5:30 p.m. and she also stated that she would be out of the office on September 20,21,22 at a seminar. Karl will be in the office to cover her duties. Some of the Commissioners will be attending the festivities to help out. CITIZEN FORUM TO ADDRESS EDA ON MATTERS NOT ON AGENDA. Mrs. Diane Powell, Unit 905, expressed her concerns about a fire alarm going off in the building. The alarm went off for twelve minutes before the ftre department came. Anita said it turned out to be smoke from a barbecue across the street from Parkview Villa and one of the tenants from Parkview had a window open, thus, tripping the fire alarm. Mrs. Powell also said that the 9th floor fire door did not close and asked if this could be fixed. Mr. Jolly stated that he was sure that the Fire Department would be more than willing to go over the Fire Procedures for residents. Mr. Fehst was asked by President Ruettimann to have the Fire Depa~unent check that the doors on all floors are properly functioning during an actual alarm and why it took twelve minutes to respond to the call. He also requested that the Fire Department do a Fire Procedural Presentation for the residents of Parkview Villa, possibly at a residents council meeting. ITEMS FOR CONSIDERATION A. Other Resolutions. 1) Performance Funding Systems Operating Subsidy. Ken Anderson explained that each year the EDA receives an Operating Subsidy to be used for Parkview Villa North from HUD for extraordinary maintenance and building repairs. For the year 2000 our Operating Subsidy was $51,070. In our Budget for 2001 we have budgeted $50,000 for our Subsidy. We have been asked by HUD~to submit a Resolution approving the Calculation of Performance Funding System Operating Subsidy. Staff is asking the EDA to approve Resolution 2000-13 for the Calculation of Performance Funding System Operating Subsidy for 2000. A part of the program includes the Drug Free Workplace which is also attached to the Resolution. MOTION by Julienne Wyckoff, seconded by Gary L. Peterson, to approve the EDA Resolution 2000-13, being a resolution of the Columbia Heights Economic Development Authority confmuing approval of the Calculation of Performance Funding System Operating Subsidy for 2000; and furthermore, to direct the Executive Director to forward same to the U.S. Department and Urban Development. Ail Ayes. MOTION CARRIED. B. Bid Considerations. I) Proximity Readers and Security Camera System for Parkview Villa. Mr, Anderson explained that staff and the Police Chief have been working with Trans-Alarm in regards to putting in a security system with Proximity Readers and Security Cameras for Parkview Villa North. Staff is submitting an estimate from Trans-Alarm for review and approval. The Proximity Readers would be similar to what the City Hall is currently using. Ken explained that the first page of the estimate is for the Security Camera System which includes color camera view~ing for better clarity, and all of the hardware necessary for a total of $13,694.21 which includes the labor, hardware and installation cost. If the Board would choose to go with black and white cameras there would be a $1,700.00 deduction in this amount. The second page is an estimate for the Proximity Reader System for a total package of approximately $28,000. In discussion, President Ruettimaun commented that he had heard that the colored cameras project better images so he felt that it would be a good idea to go with the colored camera system. He also noted that the estimate was for only three cameras and he thought that we had talked about an estimate for four. Mr. Anderson said that this was correct and apologized for not having had a chance to look over the estimate as it just came in to the Community Development Department office this afternoon. Ken was sure that they had talked about four cameras; one at the main entry, one at the south elevator lobby, one at the garage service door, and one at the exterior parking lot. Bruce Vogelgesang did leave Ken a message saying that they did have some trouble determining where they could locate a second camera. When Ken and Bruce met with the Police Chief they talked about having one on the North Economic Development Authority Minutes September 19, 2000 Page 3 building that would be facing out towards the parking lot and Brace was proposing that we put a second one on the southeastern comer of the south building to have a view of the south side of the building where the entrance is on 40~" Avenue. President Ruettimann stated that if the security viewing cameras would be positioned in the office at Parkview Villa and then when the office is closed, no one would view the tapes until the following day. Mr. Anderson stated that this was correct. A resident wondered why there has been duct tape on the garage door frequently, therefore anyone can get in without a key? In response, President Ruettimann stated that he felt that it was probably one of the residents in the building doing this and that the residents at the meeting tonight should all try to fred out who this person is and explain that the door needs to be kept closed. She also aske/t if that door could be put on the same system as the north building where the door would lock when an alarm went off. Pres. Ruettimarm also suggested that this was something that could be brought up at the next residents meeting. Another resident asked if something could be done with the extra garbage that does not fit into the dumpster at Parkview Villa. It creates a smell that seeps into the units when the windows are open. Anita was asked to check into where the garbage overflow could be stored. It was the Boards decision to have staff request a quote for two more cameras for a total of five and check into what funds the $28,000 could come from. President Ruettimarm would like to go through a building were the cameras are currently in operation. Mr. Hunter also wanted it noted that the estimate says that it expires in 30 days so we should get this extended. C. Other Business 1) Approval of Preliminary Agreement. Mr. Anderson stated that this is a request for the Board to consider approval of the Preliminary Agreement for the Transition Block Redevelopment Project. The proposal for construction of 22 rental townhouses and 50 assisted living units on property that is primarily owned by NEI College of Technology and a lot at 4150 Central the EDA ownes, and the lot currently owned by Citywide Locksmithing. This is the fifth draft of the Preliminary Agreement. Dan Greensweig, of Kennedy and Graven, Chartered, presented his overview of the Agreement to the Board. He stated that the most important thing to keep in mind is that it is a Preliminary Agreement and there are a number of items to be resolved. Among them is how is Crestview and Real Estate Equities going to £mance their project, the status of the negotiations between Real Estate Equities and NEI, and the issues revolving around the Ostrander home. Some issues that he felt the Board needs to be concerned with are: 1) Real Estate Equities is agreeing to pay $10,000 to the EDA to be applied to the EDA's cost of the project at the time the contract is signed; 2) Realize that Real Estate Equities and/or Crest View would make the EDA whole; and 3) Indemnification of the EDA. The most important thing that the EDA should consider tonight is that if this is the kind of project that they would like to see in this area of the City then he felt that it would be a good idea to enter into the Agreement. If there are significant questions or concerns about the project, he felt that this would be the time to talk them out. In discussion, President Ruettimann said that last May the EDA approved the Cooperation Agreement for the Transition Block and he wondered how this Agreement related to that one. Mr. Greensweig stated that he believed that was the MHOP Agreement. Mr. Anderson confirrned this fact. Mr Greensweig also explained that after the EDA adopts the Agreement, then it would go to the City Council for approval. President Ruettimann asked if we sign this Agreement and the development does not go through, does the EDA have any on going commitments? Mr. Greensweig responded that they could get out of the Agreement. President Ruettimann asked Mr. Greensweig what kind of £mancing could be used for this development? Mr. Greensweig said there are two kinds of trmancing, 1) Tax Increment Funds, and 2) Non-profit Bonds to be used for the Senior Units. Mr. Hunter asked how the payoff would be handled, in thirds? Mr. Greensweig explained that the developer would not get any of the funding until the project was finalized and units occupied. Terry Troy, of Real Estate Equities, was also at the meeting and added that this and any other issues would be checked out by the Title Company before closing. Economic Development Authority Minutes September 19, 2000 Page 4 Mr. Hunter questioned if the City could possibly put a lien against the project to protect the City? Mr. Greensweig explained that if there was default on the project, the City would not be responsible for payment. He also stated that Crest View will have a big stake in this transaction so that the EDA shouldn't have anything to wony about. Bruce Nawrocki, 1255 Polk Place, asked what would the overall total cost be for the project? President Ruettimann stated that it is 1.2 million for our cost and approximately ten million from private investors. Mr. Nawrocki stated he would like the total cost. Mr. Anderson stated it was originally a !.2 million City investment and after some modifications it is up to a 1.5 million. Mr. Nawrocki was looking at a Tax Increment Financing Plan which the EDA Board had not received yet. Mr. Anderson stated that he was going to pass this Plan out to the EDA Board members under his report on the agenda. He explained that there were two handouts that he was going to be addressing in his staff report; 1) the Proposed Tax Incremer/t Financing Plan, and 2) the Transfer of Section 8. Mr. Anderson also explained that the City Council will be conducting a Public Hearing on Monday night for the Proposed Tax Increment Financing Plan. Mr. Nawrocki obtained a copy of this last night. These items will be discussed in the EDA's special meeting on Monday, September 25, 2000. Mr. Nawrocki stated that in the Budget section of the Tax Increment Financing Plan it is printed that $4,330,000 of up front monies will be used for the development. Mr. Anderson explained that generally it is good to have high figures in your budget for the Tax Increment Financing Plan because in the event that the cost exceeds the amount, the City Council and the EDA would have to conduct new Public Hearings for the difference. Therefore, in the past we have always allotted for a higher amount than necessary to prevent this timely process from occumng. He also added that the Tax Increment Financing Plan was prepared by our Financial Advisor, Sprmgsted, Inc. and not by our Legal Council. Mr. Nawrocki had other questions about what was printed in the Proposed Tax Increment Financing Plan that the EDA members had just received. Therefore, since the EDA had just received the proposal, President Ruettimarm asked Mr. Nawrocki to make a list of his questions and present them to the EDA Staff this week and they would provide him with some answers to his questions by the end of next week. President Ruettimann also asked Mr. Anderson to provide him with a copy of the information that he will be giving to Mr. Nawrocki. MOTION by Don Jolly, seconded by Gary L. Peterson, to approve the Preliminary Development Agreement by and among the City of Columbia Heights and Columbia Heights Economic Development Authority and Columbia Heights Transition Block, LLC; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All Ayes. MOTION CARRIED. 2) Housing TIF Study (Transition Block) · Mr. Anderson explained that this was a request for the Board to approve payment to Springsted, Inc. for services related to the issuance of bonds, Tax Increment Financing District Analysis and preparation, and other financial services from March 2 through June 30, 2000. Staffhas attached a copy of the invoice from Springsted, Inc. in the amount of $7,552.46. In the past, staffhas used a larger amount to cover any unscheduled meetings or expenses thai may incur. These expenses will be reimbursed by the developer upon approval of the Preliminary Development Agreement. MOTION by Gary L. Peterson, seconded by Pat Jindra, to authorize expenditures to Springsted, Inc. up to $9,750 for the Transition Block Redevelopment Block Housing TIF Study and up to $5,000 for preparation of the TIF Plan for TIF District number 9 with payment from the EDA Fund 204; and furthermore, to authorize the President and Executive Director to process payments as necessary. All Ayes. MOTION CARRIED. 3) Section 8 Report. Mr. Anderson explained that this will be the f'mal Section 8 report as there is a special meeting of the Columbia Heights EDA and I-IRA scheduled for next Monday night, September 25, 2000, at 6:30 p.m. to approve the f'mal Resolution and letters of transfer to the Metropolitan Council. 4) MI-IFA Loan Status Report. President Ruettimann questioned why the MHFA Loan Report came with only the loans above $5,000 and not all loans? Mr. Anderson explained that the reason for this is that any loan under $5,000 does not have to be filed with Economic Development Authority Meeting Minutes September 19, 2000 Page 5 Anoka County. Currently the EDA has two outstanding loans that were filed at the Anoka County Auditors office on September 7, 2000 by staff member, Cher Bakken. The Mortgages and Assignment of Mortgage will be returned with a file number on them approximately in 3 to 4 weeks and then staff will send a copy of the mortgages to MI-IFA. Mr. Anderson also passed out a letter that staff received today from Hal Rossi, of the MHFA in regards to the Shemey and Catherine Gafkjen Home Improvement Loan gl 103055 that the EDA had asked for a pardon on the balance due to the situation. Mr. Rossi stated in the letter dated September 18, 2000 that the Columbia Heights Economic Development Department is respousible for the payment. Therefore, the EDA decided to place a motion into effect for payment. MOTION by Gary L. Peterson, seconded by John Hunter, to approve payment to Compu-Link Loan Services, Inc. in the amount of $4,759.92 for the payoff of the MI-IFA Home Improvement Loan # I 103055 for Shemey and Catherine Gafkjen account from Fund 204-46314-4600; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All Ayes. MOTION CARRIED. ADMINISTRATIVE REPORTS A. Report of the Deputy Executive Director. 1) MCPP Update Mr. Anderson explained that he had included in the EDA Agenda packet a copy of the MCPP Newletter for informational purposes only. In the newsletter it states that as of August 23, 2000, $2,299,999 remains of the original $29,948,470 released for First Time Homebuyer Loans in Anoka County. 2) Purchase of Ostrander House, 4157 Jackson Street N.E.. This item was added to the agenda at the meeting by Gary L. Peterson and President Ruettimann. Mrs. Souk'up, the daughter of Ms. Ostrander, was present at the meeting. She stated that City staff was suppose to meet with her a week ago to tell her when the closing date would be on the property. She has not heard from the City staff yet. Mr. Fehst explained that he has been in contact with Mary SoulOap in the last couple of weeks. The major hold up to the closing of the property is because NEI has not signed an Agreement with Real Estate Equities yet. President Ruettimann suggested that Real Estate Equities should move quickly on the purchase of the property. If they decide that they are not interested, he recommended that the EDA purchase the property and be reimbursed from the developer. He also asked that Ken and Walt meet with Terry Troy, Real Estate Equities on the Ostrander property and bring the specifics to the special EDA meeting on Monday, September 25~h, 2000. B. Report of the Executive Director-None. C. Committee/Other Reports. Pat Jindra reported that she at~ended two of the Resident Council meetings even though she is only required to at'tend them every three months. She submitted the reports to be filed with the Recording Secretory. The minutes will be printed up for the next EDA meeting in October, 2000. Don Jolly noticed that the carpet by the front door at Parkview Villa is moldy and the trees have not been trimmed. President Ruettimann asked that Anita Kottsick, Parkview Villa Public Housing Administrator check into these maintenance problems and get some estimates. Julienne Wyckoff asked what was the status of the two houses on Central Avenue that the EDA was going to possibly purchase? Mr. Anderson stated that Randy Schumacher hasn't been able to do very much with the property purchases due to staff working diligently on the Transfer of the Section 8 Program and TIF Reports that are both due in the next week or so. Once these two projects are completed, staffwill continue to work on the purchase of the two Main Street properties. Mr Fehst also stated that staff has been working on TIF Reports, the Budget and the Transfer of Section 8, all three projects are at high priority for their completion. Economic Development Authority Minutes September 19, 2000 Page 6 MEETINGS The next EDA meeting is scheduled for 6:30 p.m., Tuesday, October 17, 2000 in Community Room B at Parkview Villa~ - ADJOURNMENT · MOTION by Gary L. Peterson, seconded by Pat $indra, to adjourn the meeting at 8:38 p.m. All ayes. MOTION CARRIED. Respectfully submitted, Cheryl Bakken Recording Secretary H:~EDAminutes\9-19-2000Mtg.