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HomeMy WebLinkAboutEDA MIN 04-17-01COLUMBIA HEIGt~S ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OF APRIL 17, 2001 CALL TO ORDER- The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimann at 6:45 p.m., Tuesday, April 17, 2001, in the Parkview Villa Community Room B, 965 40~ Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Robert Ruettimann, Patricia Jindra, Marlaine Szurek, Gary Peterson, Sulienne Wyckoff, Bruce Nawrocki, and Bobby Williams Staff Present: Walt Fehst, Executive Director Randy Schumacher, Acting Community Development Director Cher Bakken, Community Development Secretary Jim Hoeft, City Attorney Shirley Barnes, CEO, Crest View Management CONSENT AGENDA A. Adopt the consent agenda items as listed below. l) Approval of Minutes - regular meeting of March 20, 2001 Move to adopt the minutes of the March 20, 2001 regular meeting as presented in writing. 2) Financial Report and Payment of Bills a. Financial Statement -March, 2001 b. Payment of Bills -March, 2001 Move to approve Resolution 2001-07, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the.financial statements for March 2001, and approving payment of bills for March 2001. MOTION by Peterson, second by Jindra, to adopt the consent agenda items as listed. All ayes. MOTION CARRIF~D. REPORT OF TI:IF. MANAGEMENT COMPANY In Anita Kottsick's absence, Shirley Barnes gave the Management Report. On April 12 and 16th meetings were held to show residents how to use the new security cards. New mats were ordered for the front entrance and staff wiil be painting and installing new signage. There was a leak within the bathroom walls of units 910 and 810. Maintenance is scheduled to repair and paint the units. An outside services was hired to repair radiation leaks .in apartments 604 and 702, and replace the zone valve in apartment 419. Annual inspections for the North building are scheduled for April 11 and 12'k. All of the upcoming twelve resident moves have people waiting to fiil the vacancies. Ruettimann asked Barnes to get clarification to him before the next meeting of why the management report stated 9 resident moves and her verbal report stated 12 units. RECOGNITION, PROCLAMATIONS, PRESENTATIONS, GUESTS Columbia Heights YFW Commander, Bruce Nawrocla'presented an American Flag to Presiden Ruettimann for the EDA/HRA meetings held at City Hall in Conference Room 1. Ruettimann requested Bakken send a thank you note on behalf of the EDA. APPROVE VEDI PROPOSAL FOR THE VAN BUREN PARKING RAMP PHYSICAI, CONDITION AUDIT Ruettimann talked to Mr. Yedi to clarify three questions that the Board had about the proposal; 0 the cores being moved- are core plugs to test for deterioration, 2) the slab removal- would be due to deterioration which the City would have to pay for, and 3) on-going maintenance- Vedi would prepare an on-going list of issues to check on annually.. April 17, 2001 Page 2 of 5 Ruettimann also spoke to ~'edi about doing an audit at the City owned parking ramp attached to the bank building. A physical audit was done on this structure in 1988, and repairs were made. After reading the contract with Gordon Awsumb for the ramp, Ruettiemann felt that the City Attorney should review it before we consider the audit by l~'edi. MOTION by Nawrocki, second by Williams, to approve Vedi Associates, Inc. proposal to perform Physical Condition Audit on the City owned Columbia Park Medical Group Parking Ramp located at 4011 Van Buren Street in the amount of $6,710, and subject to the Executive Director and President negotiating an agreement favorable to the City for the additional Audit of the Bank Building Parking Ramp located at 950 40~h Avenue N.E. All ayes. MOTION CARRIED. SET PUBLIC Il'EARING DATE FOR TltE SALE OF 3913 POLK STRF~F,T. Schumacher explained that back in 1998 the City applied for and received $70,000 in HOME grant funds to acquire two substandard homes in the community for redevelopment purposes. Staff recommended that the Board set a Public Hearing date of May 15, 2001 at 7:00p. m. at Park'view ~'illa for the purpose of receiving public input on the sale of 3913 Polk Street NE to Habitat for Humanity. Many issues were discussed about Habit for Humanity such as construction quality, qualifying families that become owners of the homes, the City Council Agreement from 1998, requirements of the agreement, and how many Habit homes do we have and want in Columbia Heights. ,4 main concern was "does the City have to sell 4401 Quincy and 3913 Polk to Habitat as a package deal? Schumacher explained this was part of the agreement with Habitat. Fehst explained that if the City chose to not buy 4401 Quincy with the intent to sell it to Habitat, the City would have to find another property from the scattered site list to designate for redevelopment. MOTION by Nawrocki, second by Wyckoff, to table the Public Heating. Upon Vote: Jindra-nay, Peterson- nay, Szurek-nay, Nawrocki-aye, Williams-nay, Wyckoff-nay. MOTION FAILED. 5 nay, 1 aye. Wyckoff expressed the following concerns about the Quincy property; O the City Building Official did not use a checklist or do a thorough inspection of the home, and the second inspector (that works for Gordon Awsumb) stated the home was not in that bad of condition; 2) the City could build a one-story home on the lot; and 3)families that normally take possession of the Habitat Homes have small children. With the property being directly across from the shopping mall and a busy street there would need to be fencing erected. MOTION by Williams, second by Peterson, to set a Public Hearing date of May 15, 2001, at 7:00 p.m. at Park-view Villa for the purpose of receiving public input on the sale of 3913 Polk Street N.E. to Habitat for Humanity. Ruettimann requested staff provide Nawrocki with a copy of the letter of intent made with Habitat for Humanity, which stated how many Habitat homes we would allow in Columbia Heights. SUBSITUTE MOTION by Nawrocki, second by Wyckoff, to direct staff to solicit bids for the property at 3915 Polk Street. Upon Vote: Jindra- abstained, Peterson- nay, Nawrocki- aye, Szurek- nay, Williams- nay, Wyckoff- aye. MOTION FAll.ED. 3 nay, 2 aye, 1 abstention. Peterson requested staff provide a list to City Council of what properties the City/EDA owns, and indicate which are buildable. Upon Vote of the original Public Heating motion- Jindra-aye, Peterson-aye, Szurek-aye, Nawrocki-nay, Williams-aye, Wyckoff-nay. MOTION CARRIED. 4 ayes, 1 nay. April 17, 2001 Page 3 of 5 The Commissioners requested staff publish the Public Hearing announcement in the Focus Newspaper and on Cable TV. APPROVE AMENDMENT TO METRO ASSEMBLI-F,S CONTRACT-BARNICK TIF Fehst stated that City staff, our legal counsel, and financial advisors have reviewed the status of our pay-as- you-go tax increment financing districts. Staff provided background information and suggested amendments to the Contract for Private Development, as well as letters from Dan Greensweig and the TIF Cashflow analysis for review. There is a shorOCall in the amount of TIF payments available to pay Metro Assemblies due to the compression in the tax rates, an error on the part of Metro Assemblies consultants at the time that the TIF district was established, Anoka County errors in establishing the proper net tax capacity, and previous years overpayments made by the City to Metro Assemblies. Mr. Barnick is requesting, through his legal counsel, Bill 0 'Brien, that the City absorb the projected future shorOrall by not recovering the full $60,000 the City was owed for property it sold to the HR/I for later transfer to the Barnick's. They are suggesting that a property tax abatement be established which would abate the City's share of taxes on the Barnick's propertyfor a period of uP to ten years after the TIF district expires. The City Council has agreed to amend the Contract to extend the term of the contract from 2011 to 2019, thus allowing the City to be fully repaid for land acquisition costs from TIF proceeds and approximately $39,994 to be paid to Metro Assemblies based on the January 2000 Cashflow estimates. City Council took action to approve this amendment on December 27, 2000. Staff recommended the Board approve the amendment. MOTION by Peterson, second by Nawrocki, to approve the proposed First Amendment to the Contract for Private Development between the EDA, City of Columbia Heights, Robert C. Bamick and Priscilla A. Barnick dba Metro Assemblies; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same subject to modifications that do not alter the substance of the transactions and are approved by the officials to execute these documents, provided that execution of the documents by such officials is conclusive evidence of their approval. All ayes. MOTION CARRIED. APPROVE SUBORDINATION AGREEMENT Ruettimann stated this agreement was discussed in detail by the City Council at their special meeting just prior to the EDA meeting. John Utley, Kennedy & Graven, Chartered explained the draft agreement refers to the Planned Unit Development Agreement. This revised agreement was received in their office today. Utley will have Dan Greensweig review the document prior to signing. Hoeft stated that he reviewed the document, consulted with Real Estate Equities to make some changes in the best interest of the City, and therefore, recommended that the Board approve the document. MOTION by Wyckoff, second by Szurek, to approve the Subordination Agreement by and among the U.S. Bank National Association, Columbia Heights Economic Development Authority, and the City of Columbia Heights and its execution, and direct the authorized officials to execute the same, subject to modifications that do not alter the substance of the agreement and are approved by such officials, provided that execution of the agreement by such officials is conclusive evidence of their approval. Upon Vote: Nawrocki- nay, Williams- aye, Szurek- aye, Peterson- aye, Wyckoff- aye, Jindra- aye. MOTION CARRIED. 5 ayes, 1 nay. APPROVE SECURITY CARD POLICY AND PROCEDURF. Schumacher stated the Board approved the proposed Security System with Trans-/ilarm for Parkview Villa at a previous meeting Policies and Procedures have been created, as requested by the ED~I, for issuing security cards, and will be implemented upon approval and installation of the system. Nawrocki stated he was currently working with someone that has the same system in place and they are having problems with the system when there is a power failure. He asked what steps have been made to prevent this from happening at Parkview Yilla. Schumacher stated that staff has already talked with Trans- Alarm about adding a 5 minute delay to the proposed system for Parkview Villa. April 17, 2001 Page 4 of 5 MOTION by Williams, seconded by Jindra to approve the Security Card Policy and Procedures, Residents Security Card Form and the Additional Security Card Registration Form for Parkview Villa North and South Senior Housing Units; and furthermore, to direct staff to implement the policy and forms when the security system is in place. All ayes. MOTION CARRIED. APPROVE ~ DISCLOSURE OF INFORMATION ON I,EAD BASE PAINT Schumacher explained that the Lead Based Paint issue was discussed at last months ED,4 meeting. Staff reviewed a recommended format to be added to the Parkview Villa lease. Kottsick has obtained the documents and has submitted them for Board approval. MOTION by Williams, seconded by Wyckoff, to approve the Disclosure of Information on Lead Based Paint and Lead Based Paint Hazards as attachment F. #6 to the Lease for Parkview Villa North, South and Tyler Street Senior Public Housing Units; and furthermore, to direct staff to implement the disclosure immediately. All ayes. MOTION CARRIED. APPROVE ONE STRIKE PROVISION-LEASE Schumacher explained that the One Strike Provision proposed rule deals with eviction for Drug ~4buse and other Criminal activity, as published July 23, 1999 in the Federal Register. This document is to be used as a guide when implementing eviction policies for crime prevention and enforcement. Staff recommended that the provision be approved and put into place immediately at Parkview Villa. Ruettimann stated that this should be put into the lease as a separate addendum or it would be overlooked. MOTION by Peterson, second by Williams to approve a One Strike Provision as attachment F.#5 to the Lease and Admission and Continued Occupancy Policies for Parkview Villa North, South, and Tyler Street Senior Public Housing Units, with the revision that this be put into the Lease as a separate addendum; and furthermore, to direct staff to implement the provision immediately. All ayes. MOTION CARRIED. Renie Suflca, Unit 104, asked if this would apply to everyone currently living in the building or new residents. Barnes stated that everyone will be required to sign the lease amendment. Nawrocki had questions about the Parkview Villa Lease. Barnes clarified as many questions as possible without having the lease in hand. Barnes will provide Nawrocki with a copy of the current lease agreement. UPDATE STATUS OF BREAKDOWN ON 912 HOURS ON Tl:l~ HUD PHAS FORM Ruettimann explained that Kottsick is working on this report and will provide the information in the next few months. This report takes a large amount of time to prepare. LEAD BASE TRAINING FOR CITY INSPECTOR Ruettimann checked on training courses available for lead base training but has not received a good response. The Lead Base gun runs $8,000 to $10,000 each and he suggested we purchase the gun with another City on a shared program. He will check.further into this and report back next month. REPORT OF ~ ACTING DEPUTY EXE~ DIRECTOR UPDATE ON PARKVIEW VILLA PA SYSTEM Schumacher reported that in the past the P,4 System was connected to the Fire Alarm System, therefore, the Fire Department has requested Parkview Villa not use the system. Staff will contact the Fire Chief regarding rewiring the system to separate the.fire alarm system from the public address system. April 17, 2001 Page 5 of 5 UPDATE OF ACQUIRED CDBG FUNDS Schumacher stated that on March 27, 2001 the Anoka County HRA Board of Trustees met to discuss recommendations, for funding levels, of the Community Development Block Grant Program. The application submitted by the City of Columbia Heights in the amount of $300, 000 was reduced to $175, 000 for our redevelopment project on 40th and University. Schumacher has included the recommended level for funding of the public service budget in the packet distributed to them. The HRA Board of Trustees has recommended a County Wide Housing Rehab Program in the amount $585,000. Final authorization of the Community Development Block Grant Funding by the Anoka County Board is anticipated sometime in May. REDEVELOPMENT ADVISORY COM3{ITrEE REPORT Ruettimann stated that the Advisory Committee has begun on the Central Avenue redevelopment area. $chumacher contacted the property owner for Burger King, Williams contacted the rental property owner, and Nawrocki contacted the owners of the Bowling Alley about the possibility of relocating in lieu of redevelopment on their site. Nawrocki reported the Bowling Alley's future plans were to have the sons take over the property and upgrade it but stated that they would be open to any ideas. Schumacher reported the owners of Burger King were willing to discuss any options of how they could become involved in the redevelopment project. Williams had to leave the meeting early so Peterson reported that Williams talked to the owners of the rental unit and they are very interested in any kind of redevelopment to their property. The Committee will continue to work on this and update the Board as necessary. RESIDENT COUNCIL MEETING MINUTES Jindra presented the Resident Council Meeting minutes of April 9, 2001 to the Board. There was no discussion. SET DATE FOR CAPITOL IMPROVEMENT ASSESSMENT COMMITTEI~. Ruettimann stated that around May 7, 2001, staff should have the auditors report back which would have the information necessary for reviewing each unit at Parkview Villa. Szurek who will steer the committee, projected they will begin sometime in June. MEETI/'qGS The next EDA meeting is scheduled for 6:30 p.m., Tuesday, May 15, 2001 in Community Room B at Parkview Villa. MOTION by Szurek, seconded by Jindra, to adjourn the meeting at 8:56 p.m. All ayes. MOTION CARRI'E~D. Respectfully submitted, Cheryl Bakken Recording Secretary H:\EDAminutes2001\4-17-2001