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HomeMy WebLinkAboutEDA MIN 06-26-01COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OF JUNE 26, 2001 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by Vice President, Jindra at 6:31 p.m., Tuesday, June 26, 2001, in the Parkview Villa Community Room A, 965 40'~ Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Patricia Jindra, Gary Peterson, Julienne Wyckoff, Bruce Nawrocki, and Bobby Williams Commission Members Absent: Staff Present: Robert Ruettimann, Marlaine Szurek, Randy Schumacher, Acting Community Development Director Mark Nagel, Community Development Staff Cher Bakken, Community Development Secretary Anita Kottsick, Parkview Villa Housing Administrator Shirley Barnes, CEO, Crest View Corporation 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 May 2001 2) Financial Report and Payment of Bills a. Financial Statement - May, 2001 b. Payment of Bills - May, 2001 Move to approve Resolution 2001-09, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for May, 2001 and approving payment of bills for May, 2001. MOTION by Nawrocki, second by Williams, to adopt the consent agenda items ~vith the following amendment to the last paragraph of the minutes. All ayes. MOTION CARRIED. It should read: Nawrocki requested staffprovide the answers to the following questions on the current lease agreement for Parkview Villa. 1) Why do we use a month-to-month lease instead of a 6-month or 12-month? 2) Do we nm Credit Checks on prospective tenants? 3) Do we nm Background Checks on prospective tenants? 4) Do we charge any late fees to residents? Nawrocki stated that when an EDA meeting is rescheduled, all of the Councilmembers should be called prior to setting the new date, which was not done by staff for this meeting. REPORT OF TltrE MANAGEMENT COMPANY Kottsick reported the air conditioning was down on June 11 and was fixed on the 13th. Another system went down on the 18~ and fixed on the 19'h. The South apartments were inspected the end of May and all repairs to be made are scheduled. Staff training on the new software system was done the week of June 18, 2001. Installation of the Security System is scheduled to begin June 25'~. Kottsick attached to her report an information sheet answering questions asked by the Board at the May, 2001 meeting which she reviewed with Nawrocki. Economic Development Authority Meeting Minutes .tune 26, 2001 Page 2 of 5 Nawrocki provided information sheets for Management's review, that provided legal information on the Month-To-Month Lease, Credit Checks, Charging Late Fees, and Background Checks. Nawrocki questioned staff at the last meeting about the necessity of having a Brokers License for Parkview Villa. Staff stated the City Attorney verified it was not necessary. Nawrocki requested in May that staff get this put into writing by our Attorney and present it to him, which has not been done. Nawrocki checked with his attorney, and the state statutes. The information he gathered stated the EDA Board does need a license. Schumacher stated staff was directed by Walt Fehst, that the City Policy states anything requested of the City Attorney needs to be put into writing. Schumacher indicated staff would be happy to arrange for this. Williams indicated there is a resident of Columbia Heights, Ken Koch, 4042 Arthur Street, that does security system work and asked why he was not included in the bidding process and indicated he would like Mr. Koch added to the bidding list for any future security systems. In the discussion that followed, it was determined that the actual bidding process was done a couple of ti~nes over the years and the Board chose Trans-Alarm, Inc. due to the fact the City Police Department already had $8,000-$9,000 in software equipment that was needed for the system. Schumacher stated there is a one-year contract on the new system and after that period of time, staff will look for a maintenance agreement and will include Mr. Koch in the bidding process. ITEMS FOR CONSIDERATION - OTH'ER BUSINESS POLICY AND PROCEDURE FOR TRACKING CRIME AND CRIME RELATED PROBLEMS Kottsick reported the Policy and Procedure for Parkview Villa Nort, is required by HUD for tracking and addressing crime, and crime related problems, and needs to be adopted by the Board. Staff also recommended, adopting the Policy for Parkview Villa South and authorize staff to implement it immediately. Nawrocki asked for clarification of "Criminal Behavior" as written in the Policy. Kottsick explained criminal behavior is when a resident has a number of complaints in their file from the Police Department. Nawrocki felt this description was not specific enough and wanted the sentence regarding this matter better defined. Motion by Nawrocki to table this agenda item until next month when staff could explain "Criminal Behavior" in more detail in the Policy. Motion failed for lack of a second. MOTION by Peterson, second by Williams, to approve the Policy and Procedure for Tracking Crime and Crime Related Problems Form for Parkview Villa North and South Senior Housing Units; and furthermore, to direct staff to implement the policy immediately. Upon Vote: Peterson - Aye, Nawrocki- Nay, Wyckoff- Aye, Williams- Aye, J'indra- Aye. Motion Carried. POLICY AND PROCEDURE FOR SCREENING APPLICANTS CRIMINAL ItISTORY Kottsick stated the Policy and Procedure required by HUD, needs to be adopted by the Board for screening applicants at Parkview Villa North. The past few years, staff has screened applicants criminal history without having an adopted Policy and Procedure addressing the screening process. Staff recommended the Policy also be adopted for Parkview Villa South and Tyler Senior Housing facilities, and to implement the policy imme~i..ately. . Economic Development Authority Meeting Minutes June 26, 2001 Page 3 of 5 Motion by Peterson, second by Wyckoff, to approve the Policy and Procedure for Screening Applicants Criminal History Form for Parkview Villa North/South and 4607 Tyler Street Senior Housing Units; and furthermore, to direct staff to implement the policy immediately. All Ayes. Motion Carried. [tIRING OF A PART TIME CARETAKER Schumacher stated in past years Parlcview Villa has experienced anywhere from $8,500 to $12,000 in overtime costs due to building and tenant needs. Currently, maintenance staff averages 14 hours of overtime per pay period, with the majority of this time on weekend calls. If overtime continues there would be an additional cost of $10,566. To stabilize these costs, Crest View Management is recommending the addition of a part time caretaker position. By hiring a part time or weekend caretaker the estimated cost would be $5,000 with some limited overtime built into the budget due to needs of residents and the age of the building. Jindra asked Kottsick how the individual tofill the position would be found, through the newspaper or internally advertised. Kottsick indicated that this would be done internally. Barnes indicated there is a safety issue to be considered due to the age of the building and the seniors that reside there. Nawrocki questioned the procedure followed when scheduling employees for overtime hours and when this usually is necessary. Kottsick stated that most of the overtime is on weekends when there isn't any maintenance staff in house, or in special cases, like the elevator modernization project. The answering service on the weekends will only notify maintenance to come in if there is a safety issue of the residents otherwise messages are taken. Motion by Williams, second by Peterson, to authorize the hiring of a part-time or weekend Caretaker at Parkview Villa, not to exceed $5,000 in annual expenditures. Upon Vote: Peterson- Aye, Nawrocki- Nay, Williams- Aye, Wyckoff~ Aye, Jindra- Aye. Motion Carried. TRANSFER OF HOME MORTGAGE LOAxN'S Nagel reported there are two outstanding Home Mortgage Loans the EDA made in 1979. The first, Chartraw/Uecker was closed on June 1, 1979for 30years with monthly payments of $381.34 and a remaining balance of $20,243.70 at 5%. The second loan, Neilsen was a 30-year mortgage closed on July 1, 1979 with monthly payments of $318.60 and a remaining balance of $18,699.35 at 5%. Both loans are up to date. At the May 15'~ EDA meeting, staff was directed to check into selling the loans to a mortgage company. Local banks were contacted and one offer was received from Community Reinvestment Fund (CRF) for 86.91% of par value. CRF will purchase the two loans for $33,689.61 or 86.86% of the remaining balances. Therefore, staff recommended the Board sell the 2 Home Mortgage Loans to CRF and the proceeds be placed into the Business Revolving Loan Fund. Nawrocki questioned where the interest from the two loans has gone for the past 22 years. Staff agreed to check with the Finance Department and inform Nawrocki. Economic Development Authority Meeting Minutes June 26, 2001 Page 4 of 5 Motion by Peterson, second by Wyckoff, to approve the sale of the Chartraw/Uecker and Nielsen Home Mortgage Loans to Community Reinvestment Fund for approximately ·$33,689.61 with the proceeds from the sale to be placed in the Business Revolving Loan Fund and transfer the Mortgage Insurance; and furthermore to authorize the President and Executive Director to enter into an agreement for the same. Upon Vote: Peterson- Aye, Nawrocki- Nay, Williams- Aye, Wyekoff= Aye, Jindra- Aye. Motion Carried. SECTION 8 REPAYMENT AGREEMENT Nagel reported in April of 1999, the EDA agreed to a loan with Mr. Hagen, a Section 8 recipient for $1,334 with payments of $55. 63 per month over a 2-yearperiod. To date, the EDA has received a total of $950.26 with no payments since November of 2000. Hagen is currently homeless with no forwarding address. In checking with the Anoka County Social Services Department, Hagen is no longer on the Section 8program. Staff recommended the loan be declared uncollectible and that no future loans of this type be issued. Motion by Peterson, second by Williams, to declare the remaining balance of $384.74 of the loan repayment agreement with Duane Hagen, a Section 8 recipient, uncollectible. All Ayes. Motion Carried. 2001 PUBLIC HOUSING CAPITAL IMPROVEMENT PROGRAM Nagel stated the Public Housing Capital Improvement Program is the final piece of the Annual Public Housing Agency Plan to be submitted to HUD. Staff provided spreadsheets of all capital equipment items over the next 40 years and in doing so, focused attention on the necessary improvements for 2001 and the next 5years. Parkview Villa South requires improvements over the next 6years that are relatively inexpensive like siding, roofing, and windows. Whereas, the needs of Parlcview Villa North over the next 6years will almost match the amount of expected CIAP revenues available to the EDA, of approximately $800,000. The Capital Improvements Committee will start meeting sometime in July to work on the 2002plan, which is due at the end of the year. At this time, staff recommended the Board approve the 2001 Capital Improvements Plan to be submitted to HUD with the Agency Plan. Motion by Wyckoff, second by Williams, to approve the 2001 Capital Improvements Program and authorize submittal to the Department of Housing and Urban Development, along with the Agency Plan and furthermore, recommend the Board set a meeting of the Capital Improvements Committee for sometime in .luly. All Ayes.' Motion Carried. HOUSING UPDATE Navel stated he has been working on the following issues: 1) Development Agreement details with Chris Winters, from Real Estate Equities; 2) Transferring the loans currently administered by the Community Development Department Secretary and the Finance Department, 3) the Parking Ramp issues; 4)fence placement around the Habitat for Humanity Home on ~ Street, and many other issues. ADMINISTRATIVE REPORTS - ACTING DEPUTY EXECUTIVE DIRECTOR MONROE PROPERTY UPDATE Upon Walt Fehst's request, Schumacher presented some details to the Board for the property at 4656 Monroe. The property is a corner lot, 82 x134 in size, single family, zoned R-2, it is valued at $31,300 for 2002, and CDBG dollars were used to purchase the property back in 1995for $33,000 with approximately another $800 in closing fees. There are two options to consider on the sale of the property; 1) Sell to a developer to build a low-income housing unit; and 2) Sell it on the open market and payback approximately $37,000 to~Jhe County. Economic Development Authority Meeting Minutes June 26, 2001 Page 5 of 5 Nawrocki requested staff get the actual amount attached to the CDBG funds if we sold the property on the open market. ANOKA COUN~ LETTER APPROVING CDBG FUNDING FOR 2002 Schumacher explained that staff received a letter from Angela Stamper, Financial Analyst in the Anoka County Community Development Department on May 29, 2001. Anoka County approved the CDBG funding for the 4t7h Avenue improvement project (Conoco) in the amount of $! 75, 000, which will be available to the EDA after July 1, 2001. A meeting will be scheduled with the County to go over new procedures, requirements, and who the contact will be for the project. Wyckoff asked if anyone has inquired about the property for development. Schumacher stated he recently met with a developer, John Allen, for possible development in the area of 3 7h and University. Allen has done a lot of the development in the City of New Brighton, which is yew well done. A follow- up meeting to discuss some specific issues involved will be set up in the near future. KENNEDY AND GRAVEN LETTER REGARDING TRANSFER OF ACTMTIES TO 1:I~,~. Schumacher reported that the letter from Kennedy and Graven was submitted to the Board which clarified the issues involved in transferring some of the activities from the EDA to HRA as requested at the May, 2001 meeting. RESIDENT COUNCIL M-EETING MINUTES OF JUNE 11, 2001 A copy of the minutes from the Resident Council meeting held on June 11, 2001 was submitted by Jindra. No discussion was received. MEETINGS The next EDA meeting is scheduled for 6:30 p.m., Tuesday, July 17, 2001 in Community Room B at Park-view Villa· ' ADJOURNMENT The meeting was adjourned at 8:22 p.m. by Vice President, Jindra. Respectfully submitted, Recording Secretary ' H:\EDAmiautes2001 \6-26-2001