HomeMy WebLinkAboutEDA MIN 10-16-01COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
REGULAR MEETING MINUTES OF OCTOBER 16, 2001
CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Author/ty
(EDA) was called to order by Vice President, Patricia Jindra, at 6:34 p.m., Tuesday, October 16, 2001, in
the Parkview Villa Community Room B, 965 40~ Avenue NE, Columbia Heights, Minnesota.
ROLL CALL
Commission Members Present:
Commission Members Absent:
Staff Present:
Patricia Jindra, Marlaine Szurek, Gary Peterson, Julienne
Wyckoff, Bruce Nawrocki, and Bobby Williams
Robert Ruettimann
Walt Fehst, Executive Director
Anita Kottsick, Parkview Villa Housing Administrator
Mark Nagel, Housing Assistant
Cheryl Bakken, Secretary
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.
1) Approval of Minutes - regular meeting of September, 2001
Move to adopt the minutes of the September, 2001 regular meeting as presented in writing.
Nawrocki asked for an amendment to the minutes on page 3, Other Business, Acquisition of 3718
Central Avenue NE, as the last sentence should read as follows:
Jindra stated this was similar to the Logacz property on [/an Buren Street. Nawrocki indicated
that it wasn't the same because with the Logacz property was a residential rezoning with another
house to be built on it. The concern then was about the possibility of combining the Logacz lot
with the one next to it on the southwest corner, which was to be torn down due to deterioration
and used for some kind of development project.
2) Financial Report and Payment of Bills
a. Financial Statement -September, 2001
b. Payment of Bills -September, 2001
Move to approve Resolution 2001-15, Resolution of the Columbia Heights Economic
Development Authority (EDA) approving the financial statements for September, 2001 and
approving payment of bills for September, 2001.
MOTION by Szurek, second by Williams, to adopt the consent agenda items as listed with the
amendment to the minutes as listed above. All ayes. MOTION CARRIED.
REPORT OF THE MANAGEMENT COMPANY
Kottsick reported that the boiler repairs are near completion. The number one elevator was
down on 10-8-2001. ,4 resident was stuck in the elevator for approximately 5 minutes while it
was reset. The elevator technician was out approximately two hours later and repaired a loose
part on the back door leading to the shop.
Administrative Report- The IS Department installed the software update on October 1 lth for the
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October 16, 2001
Page 2 of 6
50058form transmittals. After she transmitted a partial HUD called to inform her that they
were experiencing some trouble with the new system and suggested the forms be sent in small
batches. A survey was sent to residents checking for interest in starting a floor monitoring
system, which received a good response. Kottsick will work with three (3) resident volunteers to
develop the procedure and provide it to the Resident Council next month for discussion.
Kottsick indicated she'Il be on vacation, October 22~d, 26ta and November 5 thru the 9ta.
ITEMS FOR CONSIDERATION
OTI:[ER RESOLUTIONS
Resolution 2001-16, a Resolution Rescinding the Redevelopment Project tIousing TIF District No.
2 and it's Related Tax Increment Financing Plan
Nagel indicated staff met with Shelly Eldridge, Ehler and Associates to discuss the progress of
Housing Redevelopment TIF District #2, involving the construction of a 70 unit, affordable
senior housing project located at the intersection 0f 51u Avenue and Jackson Street near St.
Timothy's Lutheran Church. Staff learned that even though all approvals for setting up the
District were obtained in October of 1997, the District was never certified with Anoka County as
the project was put on hold. Staff has worked with Ms. Eldridge and Dan Greensweig, Kennedy
and Graven to decertify the District as there was no activity in the district prior to the Octolfer,
2001 deadline. Resolution 2001-16 rescinds the TIF district and the plan, which will be
sufficient to clarify the EDA and City's internal records and enable authorizing another district.
After EDA Board approval, a resohttion will go before the City Council for approval.
Nawrocla' asked who initiated the development of the District. Fehst stated it was the EDA and
Mary Tjosvold. Mary T. owns various senior and handicap buildings.
MOTION by Peterson, Second by Williams, to waive the reading of Resolution 2001-16, there
being an ample amount of copies available to the public. All Ayes. MOTION CARRIED.
MOTION by Peterson, second by Williams, to approve Resolution 2001-16, a Resolution
Rescinding the Redevelopment Project Housing TIF District No. 2 and it's Related Tax
Increment Financing Plan; and furthermore, to authorize the President and Executive Director to
enter into an agreement for the same. All Ayes. MOTION CARRIED.
Other Business.
Millar Elevator, Davis-Bacon Issue
The City's 2000 audit report completed by H£B Tautges Redpath, indicated the EDA failed to
comply with the Davis-Bacon Act on the elevator modernization, which requires all laborers who
work on a project with the contracted total in excess of $2, 000 to be paid the prevailing wage
rate. The EDA has been reimbursed all of its $271,488 in CIAP funds for the project. The
agreement with the Elevator Advisory Group did not include monitoring for Davis-Bacon
compliance, nor did the contract with Millar Elevator Service. In a letter received,from Don
Armborst, Millar Elevator, and confirmed by other bidders at the Pre-Bid Conference, City staff
said that Davis-Bacon requirements were not in effect for this project. Five different Millar
employees were underpaid a total of $6, 709.90 and must be paid back wages with funds going
directly to the employees, less the normal de&tctions, and both the employee and company must
sign off as having received these payments. Since the EDA discovered the problem and notified
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October 16, 2001
Page 3 of 6
HUD in a timely fashion of the violation, there will be no penalties. The EDA is responsible to
pay the $6,709.90 to meet all Federal laws, including Davis-Bacon, according to the CIAP
Agreement filed with HUD. Nagel then, presented two options; 1) go to arbitration,, or 2) use
ClAP funds.
MOTION by Peterson, second by Williams, to authorize the payment of $6,709.90 to eligible
employees of Millar Elevator Service Company to comply with Davis-Bacon requirements for
the ParloAew Villa Elevator Modernization Project to be paid with CIAP Funds.
Upon Vote: Peterson- Aye, Nawrocki- Nay, Szurek-Aye, Williams-Aye, Wyckoff- Aye.
MOTION CARRIED.
NawrocJa' felt this would be an improper expenditure of the CIAP funds. Fehst stated that if that
was true, the auditor's report would be in violation. Nawrocki requested a copy of the auditors
report stating the findings on the elevator modernization.
Recommendation to City_ Council forApproval of the Modification of TIF District No. 1
Nagel reported that on May 27, 1997, City Council approved a scattered site TIF District to
facilitate redevelopment of substandard single-family homes to improve the City's housing stock,
increase property values, and prevent the spread of blight. Tax increments from the propert'.tes
in the district were to be used to finance land acquisition, demolition, relocation, and related'
development costs. Shelly Eldridge, Ehlers and Associates, determined that the City needs to
show activity and any modifications need to be completed on each of the 56parcels in the
District by September 8, 2002, or they will be dropped and would reduce the potential TIF
revenue generated. Based on discussions with the consultant the following steps can be taken: 1)
add 15parcels to the District with work expected to begin prior to September 8, 2002 to increase
the revenue stream; 2) Ehlers will complete a projection of funds that could be expended, then
recovered over the remaining 21 years of the district based on the new TIF laws; 3) e~rpend the
projected funds within the district prior to the September 8, 2002 deadline; and 4) any City fitnds
that have been spent in the past 4years on the 56parcels such as 4401 Quincy Street NE can be
reimbursed by the district and spent on other housing activities within the district. Staff
recommended the Board make a motion to recommend City Council authorize the Modification
of TIF District No. 1.
MOTION by Wyckoff, second by Williams, to recommend City Council adopt the Modification
to the Downtown Central Business District (CBD) Revitalization Plan for the CBD
Redevelopment Project and the Proposed Modification of Housing Redevelopment Tax Increment
Financing District No. 1 and the Modified Plans. All Ayes. MOTION CARRIED.
4607 Tyler Street
Nagel indicated the four plex at 4607 Tyler Street NE was purchased by the HRA/City on
February 24, 1995for $79,000. The building was rehabbed for $86,395, using $40, O00 from
HOME funds, $36,395 of CDBG funds, and $10,000 of liRA Reserve Funds. The HRA has rented
the units to persons 55 or over. The financial proforma has not been reviewed since 1995. It
shows an annual rent increase of 3% to cover rising expenses, but the rent has never been
increased. The main concern with the proforma is that the Total Development Cost (TDC) is
$165,395, instead of $124, 000. Staff requested the Board authorize an update of the proforma
and research whether continued ownership of the four plex is feasible.
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October 16, 2001
Page 4 of 6
Fehst indicated this would be money the Board could use somewhere else. Peterson stated he
would like to see staff update the proforma, check into the possibility of selling the unit, and look
for a good landlord. He also felt that the EDA should not become long-term landlords.
Wyckoff asked if we couM sell the unit on the open market. Nagel indicated he wouM have to
check that out as HRA, HOME, TIF, and CDBG funds were used for the acquisition and rehab of
the property.
Nawrocki asked staff to provide meeting minutes and any other documents pertaining to the
purchase and rehabilitation of the unit.
MOTION by Szurek, second by Williams, to authorize an update of the financial proforma,
review options based on the analysis of the financial proforma for 4607 Tyler Street NE, and
report to the Board at a future meeting. All Ayes. MOTION CARRIED.
Beauty Salon Charges for Services to Residents
Nawrocki indicated that at the September EDA meeting he requested copies of other salons
charges in the area from staff and he would compare them with what residents are paying at
Parkview Villa to see if they are being charged reasonable rates. He then gave the ~rample 9fa
shampoo/set being $7 at the Boulevard and $10 at Parkview. Therefore, the Parkview Villa"
Salon charges are higher. Nawrocki asked Kottsick to talk to Thesbo Hams about lowering her
prices to match those in the area. Kottsick agreed to talk to Hams about herprices, but felt that
this issue should be taken to the Resident Council for all residents of Parkview Villa's input on
the matter.
Pat Baker, Unit 206, indicated that Hams many times provides coffee and cookies or comes in to
provide her services for fitnerals or other special occasions as a courtesy to her customers and
that should be taken into account for the fees she charges.
Renie Sufka, Unit 104, indicated &at the residents of Parkview Villa are low income and Hams
makes a clear profit from providing services at Parkview, as she has no overhead costs other
than her general supplies.
Peterson asked for clarification of what the Board approved last month for the salon. Bakken
stated that the Board approved the Beauticians Agreement between the EDA and Thesbo Hams,
and the three (3) year Salon Licensing application required by the Department of Commerce to
satisfy the auditor report requirements.
AD STRATIVE REPORTS.
EDA Holiday Gatherin~JDinner
Fehst indicated that Tuesday, December 18, 2001 is a tentative date to hold the Holiday Dinner
for EDA members and spouses. Staff is asking for clarification if this date will work for all
Board members and do they want to go back to Jax Restaurant. Bakken indicated that December
10~ has been set aside as a possible date for a short meeting to be held at 5:30p. m., before the
City Council Worksession. Box lunches could be provided to accommodate the Board members
for the earlier time schedule.
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October 16, 2001
Page 5 of 6
Nawrocki indicated that the holiday dinner in years past, was set up to show appreciation for
volunteers and suggested the Board have a dinner at Parkview Villa for the volunteers and &rite
the EDA Board members instead of going to Jax. Kottsick stated that the Resident Council holds
a Holiday Dinner for resident volunteers each year, which helps expend their funds to meet HUD
requirements for the year.
Peterson stated the dinner was more ora year end social event for Boardmembers and their
spouses, and if there is a budget concern, he would be willing to payfor his two dinners. Board
members lzYilliams, Jindra, and Szurek also agreed to this. Fehst stated that in the past we have
conducted a short meeting before the dinner.
It was determined to go back to Jax Restaurant on December 18, 2001 at 5:30 p.m. for the
Holiday Dinner and meeting using the funds that have been built into the 2001 budget for the
dinner.
Report of the Executive Director
Fehst indicated that the bids for 4656 Monroe Street NE will be opened on Monday, October 22,
2001 and asked Councilmembers if they could meet a half hour ahead of the City Council
meeting to review the bids. Then at the City Council meeting they could possibly award the sale,
to insure the construction starting this year. It was decided to hold the meeting on Monday 'n~ght
at 6:30p. m.
Committee/Other Reports.
Resident Council Meeting Minutes
dindra asked staff to amend the minutes to read as follows:
Under the entertainment committee- This Halloween there will be cider and cookies downstairs
in the party room. Residents that wish to, can bring donations of school supplies to the party
room for the Putnam and North Star Schools.
Housin~ Update
Nagel stated that the closings were held for both 3913 Polk Street and 4401 Quincy Street in the
last month. Habitat has some asbestos testing to do before they start, but that should be done in
the next week.
The First Time Homebuyerprogram will end on October 22~. To date, the City has done almost
three quarters of a million dollars and asked for approval to request the City get their own
allocation next year. YZyckoff asked what the interest rate is this year. Nawrocki asked what the
applicants closing fees and points are. Nagel will provide this information to the Board before
the next meeting.
The Housing Performance Score rating was revised from 60 to 81 points. This allows the Board
to use the many Metropolitan Council programs available, such as the Liveable Communities
Program where funds are used for the Transition Block Redevelopmentproject.
Nagel indicated the breakdown of grants from CEE, were provided as requested. The report
lists the grants that are being processed, the amount of the loan, and why they have not
completed.
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October 16, 2001
Page 6 of 6
The next EDA meeting is scheduled for 6:30 p.m., Tuesday, November 20, 2001 in Community Room
B at Parkview Villa.
ADJOURNMENT
The meeting was adjourned at 8:02 p.m. by Vice President, 3indra.
Respectfully submitted,
Cheryl Bakken
Recording Secretary
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