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HomeMy WebLinkAboutEDA MIN 08-21-01COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING 3vHNUTES OF AUGUST 21, 2001 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimann at 6:00 p.m., Tuesday, August 21, 2001, in the City Hall, Conference Room I, 590 40t~ Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: Staff Present: Robert Ruettimann, Patricia Jindra,, Gary Peterson, Iulienne Wyckoff, Bruce Nawrocki, and Bobby Williams Marlaine Szurek Randy Schumacher, Acting Community Development Director Anita Kottsiek, Parkview Villa Housing Administrator Shirley Barnes, CEO, Crest View Corporation Chef Bakken, Community Development Secretary Mark Nagel, Community Development Staff 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). 1) Approval of Minutes - regular meeting of July 17, 2001 Move to adopt the minutes of the July 17, 2001 regular meeting as presented in writing. 2) Financial Report and Payment of Bills a. Financial Statement - July, 2001 b. Payment of Bills - July, 2001 Move to approve Resolution 2001-11, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for July, 2001 and approving payment of bills for July, 2001. MOTION by Peterson, second by Jindra, to adopt the consent agenda items as listed. All ayes. MOTION CARRIED. REPORT OF THE MANAGEMENT COMPANY Kottsick reported that three apartments in the north building had leaks near the windows and the two apartments in the south building that had water problems last month have been repaired. The bids for replacement of the air conditioning unit have been submitted to the insurance company to check for possible coverage, from last month's power surge. The morning of August 1", a monitoring panel on the fire monitoring system received a surge from a lightening strike. Rrepairs were completed within a week. The insurance company was notified. Joe Goodman, a resident of Parkview Villa South since 1991, was hired for the part time caretaker position. Joe is very active in the community, a volunteer, and familiar with the building and tenants at Parkview. All residents with recertifications due this year have been sent notices to set up appointments to do the paperwork. At this time, 29 appointments have been made for August and several for September. HUD has a new system for reporting family information on Form 50058 called PIC, which the I.S. Department will be installing The reconciliation reports from the MTCS and PIC systems have been completed. 15conomic Development Authority Minutes August 21, 2001 Page 2 of 5 During the next couple months Kottsick will be devoting her time to annual re-certifications, a community service program for residents living in the North building, working with residents to promote a floor checking system, checking into the background for minimum rent requirements and fee schedules. Kottsick has checked into the costs of adding a surge protector to the building's electrical system and found it to be very expensive. NS.P protects to the box and Parkview Villa insurance protects from the box to the building. Insurance has a $1000 deductible and staff.is checking for coverage at this time. Nawrocki suggested staff contact the PCA and lnsurance Company to see what options we have in regards to paying for replacement units or surge protectors. · Kottsick indicated she will be out of the office on August 24 and 27th. She will be available for emergency paging if necessary. Kottsick asked for volunteers to serve, clean up and set up for the Parkview Villa Annual -picnic on Thursday, August 30a from 5:30 - 7.'30p. m. Nawrocki, Peterson, Ruettimann, and Schumacher volunteered. ITEMS FOR CONSIDERATION. Other Resolutions. Review 2002 Budget and Approve Resolution 2001-12~ Setting the EDA Local Levy_ Ruettimann requested Board members look over the Budget and contact him with any questions or comments prior to the next EDA meeting on September 18a. He will research the questions and provide answers to the Board at the September meeting. MOTION by Peterson, second by Williams, to waive the reading of EDA Resolution 2001-12, there being ample copies available to the public. All Ayes. Motion Carried. MOTION by Peterson, second by Williams, to adopt EDA Resolution 2001-12, being a Resolution of the Columbia Heights EDA adopting a Budget and recommending setting the EDA Local Levy. Upon Vote: Peterson- Aye, Williams- Aye, Nawrocki- Nay, Wyckoff- Aye, Jindra- Aye. Motion Carried. Bid Considerations. Physical Condition Audit for Parking Ramps Schumacher stated on February 17, 2001, the EDA Board requested Clark Engineering be contacted to submit an amended proposal to perform a Physical Condition Audit on the Columbia Park Medical Group Parking Ramp, with the same issues as outlined by Vedi and Associates, Inc. Vedi's bid to conduct both parking ramp audits was $6,000 each, for a total of $12,000, plus $620 for concrete testing allowance. Clark's proposal for the evaluation of both ramps was based on a similar work scope, and came in at $3,000, which included Chloride Ion testing. Kevin Hansen, City Engineer, reviewed both proposals and verbally recommended Clark Engineering to perform the audits. Schumacher stated that the last page of Clark's proposal lists five issues that are not covered in the audit and he felt the only thing missing in the proposal was the study. Ruettimann felt we shouM get an eight year contract with Clark, so the ramps can be reviewed every two years. Nawrocki questioned the ability of Clark's employees to do the work. Schumacher stated Gordon Awsumb has used Clark in the past and highly recommended them for the job. MOTION by Peterson, second by Jindra, to approve the bid proposal from Clark Engineering to perform a Physical Condition Audit on the City owned Parking Ramps located at 4011 Van Buren Street and 3989 Central Avenue in the amount of $3,000; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All Ayes. Motion Carried. mco[lomlc L~evelopment Authority Minutes August 21, 2001 Page 3 of 5 Other Business. Ro~er Flick Hearing. Nagel reported that on January 26, 2001, Mr. Flick, 4622 Tyler Street NE, Apt. 6, applied for housing at Parkview Villa North under the disability/handicapped requirement. On the application he stated he had never convicted ora crime other than traffic violations. However, when Kottsick did the required background check, the records said he plead guilty and was convicted of a felony, for which he received 20 years probation. To date, he has served nine years of the probation without incident. On May 10, Kottsick informed him that his application for housing was denied due to his history of criminal activity involving a crime of physical violence to persons or property, or a record of other criminal acts, which would adversely affect the health, safety, or welfare of other residents (Part fi, B-5 of the Parkview Villa Occupancy Policy). On Tuesday, June 19ta an informal hearing was held before Community Development Staff at which time Flick presented letters from Anoka County Human Services Division, Family Life Center, and his Counselor, Sari Halabi from Sds, indicating his employment, that he is a responsible tenant, and had no violations of his parole. On June 27'a, staff upheld the decision of the Housing Manager. Flick requested a hearing before the EDA Board. Halabi provided the following information on Mr. Flick: Flick is an adult receiving disability assistance from Anoka County, he was married with two children, is divorced and stated that during the divorce proceedings his ex-wife accused him of sexually abusing his daughter, which he was convicted. But, there was never any physical evidence proving this happened, and he was put on probation for 20 years. Halabi assists Flick with his financies, visitations with his son, and housing. Currently he is living in a unit that has been sited with over 27 violations and is raising the rent $100 a month on September 1. Halabi indicated, there was no reason to deny Flick residency at Parkview Villa North. Nawrocki questioned if Flick's Section 8 Voucher would be accepted in the unit where he is currently living and if he applied at the ACCAP Group Home on 47~ and Central. Halabi stated the owners of the apartment complex do not except residents on the Section 8program, and Flick does not qualify under ,4CCAP's regulations. Nawrocki then questioned if the Anoka County Shelter would take his Section 8 Voucher. Halabi responded that would not apply as that would only be temporary housing. Flick spoke for himself and stated he did not touch his daughte, r and did his best to provide for his family. Ruettimann and Nawrocki indicated they understood the situation Mr. Flick was in, but felt as a governing board for the EDA they would have to comply with Parkview Villa policies. Williams asked why Flick filled in on his application that he did not have a criminal background. Halabi stated it was a mistake on his part, as he helped Flick fill out the form. Williams then offered to assist Flick and Halabi in clearing Flick's record though the court system. MOTION by Jindra, second by Nawrocld, to deny Mr. Flick's application for housing at Parkview Villa North upon the application being incorrectly submitted. This is based on Section 2, Paragraph 2-B, number 5, states "A history of criminal activity involving crimes of physical violence to persons or property or a record of other criminal acts which would adversely affect the health, safety or welfare of other residents". All Ayes. Motion Carried. Building Plans for Habitat for Humanity at 3915 Polk Street NE and 4401 Quincy Street Schumacher explained at the August 2001 meeting, the EDA Board requested that Habitat for Humanity provide color pictures, detailed dimensions, etc. on the building plans for 3915 Polk Street NE and 4401 Quincy Street NE. Mr. Powell, Habitat for Humanity Representative, was present to ask for a preferred design and to answer any questions about the designs. Ruettimann picked a recommended Twin Home design for 4401 Quincy Street. Jindra indicated she looked at a few Habitat homes and highly approved of their design and construction. Economic Development Authority Minutes August 21, 2001 Page 4 of 5 Nawrocki indicated that at a previous EDA meeting it was discussed that Habitat should consider taking the existing garage off3915 Polk Street or design a different entrance to the garage as it would be very hard to enter the garage where it is positioned on the property. Plans for the property still show no difference in the garage entrance. Powell stated that Habitat had intentions to re-roof and place siding on the garage, however, after reviewing the plans agreed that a different entrance to the garage would be necessary. Powell will follow up on this with Habitat staff to make the design changes. Wyckoff felt the plans were not allowed to be reviewed by the public, therefore, the Board should not make any decisions on the designs. Schumacher stated that the plans were reviewed at the Public Hearing in August, the Legal notices for the sale and Public hearing were in the Focus Newspaper, and on the local cable channel; and therefore, all necessary publicity and steps have been followed. It was by Board request that better designs be submitted at this meeting for approval before the structures were actually started. [Yyckoff requested Habitat contact the neighbor regarding a fence issue. MOTION by Peterson, second by Williams, to approve Model 2SE3 building plan for 3915 Polk Street N.E. and the Twin Home building plan for 4401 Quincy Street N.E. from Habitat for Humanity. Upon Vote: Peterson- Aye, Williams- Aye, Jindra- Aye, Nawrocki- Nay, Wyckoff- Aye. Motion Carried. Expending Parkview Villa North Funds for 2001 Capital Improvement Projects Nagel indicated the boiler, header, and HV,4C need approximately $30,000 in repairs prior to the cold weather season. The Capital Improvement Projects funds for this project will not be approved until October and available until next year. He proposed using existing revenue funds from Parkview Villa North at this time, and replacing the funds when the CIAP funds are approved for 2002. MOTION by Peterson, second by Wyckoff, to authorize the expenditure of up to $30,000 from Parkview Villa North reserve funds for repairs to the boiler/header/valve and HVAC pending confirmation of availability of funds by the Finance Deparmaent; and furthermore, authorize staff to solicit bids for the work and bring back for Board review and approval. All Ayes. Motion Carried. Home Mortgage Loan and Business Loan Repayments. Nagel indicated that at the July 2001 EDA meeting the Board requested staff obtain background as to where the funds from repayment of the Home Mortgage and Business Revolving Loans were deposited over the years. In reviewing the budget these repayments were placed into the HRA administration 299 account, along with HRA levy dollars and used to repay development costs incurred with the Sheffield Redevelopment Project. Therefore, no funds have been set aside for future business loans. Staff recommended an account be established for the Business Revolving Loan Fund with the approximate amount of $34,0OO from the sale of the two home mortgage loans and all future business loan repayments be placed in this account; and to direct staff to determine the total amount of past repayments and place them into the new Business Revolving Loan Fund. MOTION by Peterson, second by Williams, to establish an account for the Business Revolving Loan Fund, which will include the revenue from the sale of the Neilsen and Chart~aw Home Mortgage Loans, and all future loan repayments from outstanding business loans. Ail Ayes. Motion Carried. ADMINISTRATIVE REPORTS. Report of the Acting Depu~ Executive Director. Hoeft Opinion Schumacher explained that at the July EDA meeting the Board requested a written letter from the City Attorney be obtained stating that Crest View is not required to obtain a Broker's License to manage the facility for the EDA. ~:conom~c Development Authority Minutes August 21,2001 Page 5 of 5 Angela Tomala Lawsuit Schumacher presented a letter from Attorney, Martha K. Sieber, of Candlin & Heck, for Angela Tomala, stating that the lawsuit was settled with St. Paul Mercury Insurance Company on behalf of the City of Columbia Heights, agreeing to pay $2,500 and the insurer for Lagerquist Elevator Co. paying an additional $2,500, for a total settlement of $5; 000. Other Committee Reports Resident Council Minutes dindra presented the report of the Resident Council meeting of August 13, 2001. or comments on the report. There were no questions Attachments. Housin~ Update Nagel explained some of the Housing Projects that he was currently working on: 1) A purchase agreement for 3718 Central Avenue has been executed, and negotiations are underway for the purchase of 3722 CentraI Avenue; 2) Documentation was sent to Community Reinvestment Fund to buy the EDA's Home Mortgage £oans for approximately $34,000; 3) The PHA Plan draft is complete and will be sent to all Commissioners next week for review before the Public Hearing, which is scheduled for the September EDA meeting; 4) The Section 8 repayment agreement with Mr. Hagen has been declared uncollectible and written-off; 5) As of July 31~t approximately 2/3 of Anoka County's allocation remained in the MHFA First Time Homebuyer Program. The interest rate dropped from 6.05% to 5.95%, effective July 18th; 6) The median rent nationwide for a 2 room apartment (efficiency} is $446, a 4 room apartment (1 bedroom) is $549, a 6 room apartment (2 bedroom) is $656, and anything larger is $801. In the Minneapolis-St. Paul area ftgures average almost $150 a month higher; 7) A letter was sent to Millar Elevator to acquire Davis Bacon in formation for the elevator modernization project that was performed at Parkview I,~illa last year; 8) A tentative closing date for the purchase of 4401 Quincy Street NE and the sale of both Quincy and 3915 Polk Street properties is set for Friday, September 14th; 9) As of the end of July, the amount of closed loans totaled over $1 million for the Home Improvement Program. A total of 85 loans have been closed with 18 loans still in process; 10) The EDA needs to show activity, any changes, and funds that will be generated on each of the 56parcels in the scattered site district P3, or they will be dropped on September 8, 2002. Ehlers and Associates is working with staff to make the projections for the remaining 21 years in the district; and 11) MHFA has provided staff with copies of a video entitled"Discover Homeownership " which is available for reviewing to residents. MEETINGS The next EDA meeting is scheduled for 6:30 p.m., Tuesday, September 18, 2001 in Community Room B at Park-dew Villa. ADJOURNMENT The meeting was adjourned at 8:41 p.m. by President Ruettimann. Respectfully submitted, Cheryl Bakken Recording Secretary H:\EDAminutes2001\8-21-2001