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HomeMy WebLinkAboutEDA AGN 09-25-00 SpecialCITY OF COLUMBIA HEIGHTS 590 40TH AVENUE N.£., COLUMBIA HEIGHTS, MN 5542 !-3878 (612) 782-2800 TDD 782-2806 EDA COMMISSIOHERS Robert W. Ruettimann Patricia Jindra Donald G. Jolly Mar[aine Szurek Gary L. Peterson Ju[ienne tWyckoff John Hunter ECONOMIC DEVELOPMENT AUTHORITY September 25, 2000 The following is the agenda for the special meeting of the Columbia Heights Economic Development Authority (EDA) to be held immediately following the HRA meeting on Monday, September 25, 2000, at City Hall, Conference Room 1,590 40~h Avenue N.E., Columbia Heights, Minnesota. The EDA does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its[ Iservices, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to] iparticipate in all EDA services, programs, and activities. Auxiliary aids for handicapped persons are available upon requestI Iwhen the request is made at least 96 hours in advance. Please call the EDA Secretary at 706-3670 to make arrangementsI I(TDD/706-3676 for deaf or hearing impaired only). I CALL TO ORDER/ROLL CALL. Adoption of Resolution 2000-14 regarding Section 8 administrative transfer. MOTION: Move to adopt Resolution 2000-14, transferring all administrative responsibili- ties for the operations of the Columbia Heights Section 8 Program and authorize all other related letters of intent be submitted to the appropriate agencies. Adoption of HRA/EDA and Metropolitan Council's Transfer Agreement. MOTION: Move to enter into the agreement governing the transfer of federal Section 8 Housing Assistance Program administration within the City of Columbia Heights and have the President and Executive Director execute same. Adoption of Resolution 2000-15 and Modified Redevelopment Plan for CBD Redevelopment Project and TIF Plan. MOTION: Move to waive the reading of EDA Resolution 2000-15, there being ample copies available to the public. MOTION: Move to adopt Resolution 2000-15, being a resolution approving a modified redevelopment project and a tax increment financing plan for tax increment financing district (Redevelopment) No. 9 (Transition Block Redevelopment Project - Crest View/Real Estate Equities). MEETINGS: A.. The next Regular EDA meeting is scheduled for 6:30 p.m., Tuesday, October 17, 2000 in Community Room B at Parkview Villa. ADJOURNMENT. Walter R. Fehst, Executive Director mission of the Columbia Heights Economic Development Authority is to provide lncial and technical assistance and resources to residential, commercial, and i..~ustrial interests to promote health, safety, welfare, economic development, and redevelopment. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: September 25,2000 AGENDA SECTION: ORIGINATING EXECUTIVE DIR- NO: DEPARTMENT: EDA ECTOR APPROVAL ITEM: ADOPT RESOLUTION 2000-14 BY: Randy Schumacher BY: DATE: September 22, 2000 ISSUES STATEMENT: To consider the transfer of the Columbia Heights Section 8 Program to the Metropolitan HRA and to provide complete program administration within the City of Columbia Heights. BACKGROUND/ANALYSIS: The Columbia Heights EDA has requested that staff pursue the transfer of the administrative responsibilities of its Section 8 Program to the Metro HRA. Due to the fact that there exists no set procedure, the process has been somewhat complicated and detailed. However, to date, all Section 8 participant files are in order, re-certifications and physical inspections of all units have been completed. City staff has been working closely with both Metropolitan HRA staff and the local HUD office to fulfill all transition criteria in order to meet the projected October transfer date. Under state statute, a city may, by resolution, authorize another housing authority to act on its behalf with respect to any powers, as its agent, such as administration of its Section 8 Program. Formal action on such a resolution is required for this transition to take place. RECOMMENDATION: Staff recommends the Columbia Heights EDA adopt Resolution 2000-14, giving authorization to the Metropolitan Council to take full administrative responsibility for the operation of its Section 8 Program. RECOMMENDED MOTION: Move to adopt Resolution 2000-14, transferring all administrative responsibilities for the operations of the Columbia Heights Section 8 Program and authorize all other related letters of intent be submitted to the appropriate agencies. HRA ACTION: h:\ EDA RESOLUTION 2000-14 RESOLUTION REGARDING SECTION 8 EXISTING PROGRAM WHEREAS, the Metropolitan Council presently has, and is administering Section 8 rental assistance certificates and vouchers, to be utilized throughout Anoka, Carver, Dakota, Hennepin, Ramsey, and Washington counties, and WHEREAS, the Metropolitan Council desires to assist low income elderly and families to obtain adequate housing in the City of Columbia Heights at a price they can afford, and to accomplish this purpose, desires to undertake a program of subsidizing rent payments to landlords to provide adequate housing to such individuals and families, and WHEREAS, there are low income households and property owners in Columbia Heights' jurisdiction that may benefit, and WHEREAS, pursuant to statute, an authority may exercise all or any part or combination of the powers granted within its area of operation, and WHEREAS, for that purpose, an authority may, by resolution, prescribe and authorize any other housing authority, to act on its behalf with respect to any or all powers, and its agent or otherwise. NOW, THEREFORE BE IT RESOLVED that the Economic Development Authority of Columbia Heights, Minnesota, hereby authorizes the Metropolitan Council to exercise its powers given under state statute and to administer its Section 8 Rental Assistance Program for low income families and elderly within the boundaries of Columbia Heights, Minnesota. This action will be directed by the mutually executed agreement governing the transfer of Federal Section 8 Housing Assistance Program administration within the City of Columbia Heights. PASSED THIS 25~ DAY OF SEPTEMBER, 2000, Offered by: Seconded by: Roll Call: ATTEST: Walter R. Fehst, Executive Director Robert W. Ruettimann, President COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: September 25,2000 AGENDA SECTION: ORIGINATING EXECUTIVE DIR- NO: DEPARTMENT: EDA ECTOR APPROVAL ITEM: APPROVE AGREEMENT GOVERNING BY: Randy Schumacher BY: TRANSFER OF FEDERAL SECTION 8 DATE: September 22, 2000 HOUSING ASSISTANCE PROGRAM ADMINISTRATION BACKGROUND/ANALYSIS: The proposed agreement is a product of the Columbia Heights staff, Metropolitan HR.A, and our Section 8 consultants. The agreement covers all aspects of tho administrative transfer of the Columbia Heights Section 8 program over to the Metropolitan HRA. The effective date of transfer is November 1, 2000. However, the actual client files will be delivered to Metropolitan HRA on October 4, 2000. Please be clear on the purpose of this agreement. It affects only the administration of the Section 8 Program, and makes no reference or has no impact on the annual contributions contract from HUD. RECOMMENDATION: The Columbia Heights staff and its consultants are recommending that the EDA Board approve the above referenced agreement as presented. RECOMMENDED MOTION: Move to enter into the agreement governing the transfer of federal Section 8 Housing Assistance Program administration within the City of Columbia Heights and have the President and Executive Director execute same. EDA ACTION: AGREEMENT GOVERNING THE TRANSFER OF FEDERAL SECTION 8 HOUSING ASSISTANCE PROGRAM ADMINISTRATION WITHIN THE CITY OF COLUMBIA HEIGHTS THIS AGREEMENT is made and entered into by the Metropolitan Council ("Council"), the Columbia Heights Economic Development Authority ("Columbia Heights EDA") and the Columbia Heights Housing and Redevelopment Authority ("Columbia Heights HRA"). WHEREAS, the Council is authorized by Minn6sota Statutes section 473.195 to function as a housing and redevelopment authority within the seven-county metropolitan area and exercises its statutory authority through its Housing and Redevelopment Authority unit ("Metro HRA"); and WHEREAS, the Council has federal contract authority to operate a federal Section 8 housing assistance program ("Section 8 program") and operates a Section 8 program within the seven- county metropolitan area surrounding Minneapolis and Saint Paul; and WHEREAS, the Columbia Heights HRA entered into one or more Consolidated Annual Contributions Contracts ("CACC") with the United States Department of Housing and Urban Development ("HUD") for the purposes of operating its own federal Section 8 program within the City of Columbia Heights; and WHEREAS, on December 22, 1997 the Columbia Heights EDA and the Council executed an Agreement Governing the Administration of the Federal Section 8 Housing Assistance Payments Program within the City of Columbia Heights which established a cooperative process by which the Council ceased operating its Section 8 program within the City of Columbia Heights; and WHEREAS, the Columbia Heights HRA wishes to terminate its Section 8 program and requested the Council to resume responsibility for operating and administering Section 8 program assistance for eligible families residing within the City of Columbia Heights. NOW THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement, the Columbia Heights EDA, the Columbia Heights HRA and the Council agree as follows: Program Transfer 1. Effective November 1, 2000 the Council will begin operating its Section 8 program within the City of Columbia Heights and will directly administer Section 8 program assistance to Section 8 participant families residing within the City of Columbia Heights. 2. The thirty-five (35) Columbia Heights families identified in Exhibit A of this Agreement that currently are receiving Section 8 program assistance through the Columbia Page 1 of 5 I Randy Schumacher- s8transfer, doc ' · , Page 2 1 Heights HRA will be transferred to the Council's Section 8 program and will become participants in the Council's Section 8 program. Exhibit A is attached to and incorporated into this Agreement. 3. The sixty-one (61) families residing within the City of Columbia Heights that receive Section 8 program assistance through the Columbia Heights HRA on a portability basis from the Council will be absorbed back into the Council's Section 8 program. 4. Five (5) families residing within the City of Columbia Heights receive Section 8 program assistance on a portability basis from an initial public housing agency other than the Council. The Council either will administer these five families' Section 8 program assistance on a portability basis or will absorb the families into its own Section 8 program. Waiting List 5. The Columbia Heights HRA will provide its Section 8 waiting list to the Council. The Council will send a letter to each family on the waiting list notifying each family about the Section 8 program transfer that is the subject of this Agreement and advising each family of its opportunity to apply for Section 8 assistance through the Council. Families who respond to the Council's letter within thirty (30) days and apply for placement on the Council's waiting list, will be placed on and incorporated into the Council's Section 8 waiting list according to the date and time the family originally applied to the Columbia Heights HRA for Section 8 assistance. Existing Section 8 Leases 6. Until July 31, 2000, the Columbia Heights HRA leased up Section 8 families who move to or reside in the City of Columbia Heights. To facilitate the parties' proposed transfer of Section 8 program responsibilities, the Council assumed responsibility for leasing up new families on and after August 1, 2000. HAP Contracts and Assignment 7. Until October 31, 2000, the Columbia Heights HRA will make all Section 8 Housing Assistance Payments ("HAP") to owners leasing dwelling units to families receiving Section 8 program assistance through the Columbia Heights HRA. Effective for Section 8 HAP contract payments covering November 2000 rents and thereafter, the Council will make all monthly Section 8 HAP contract payments to owners leasing dwelling units to the one hundred one (101) families currently receiving Section 8 program assistance through the Columbia Heights HRA. 8. The Council will enter into HAP contracts with owners and make HAP payments to owners who initially lease dwelling units to Section 8 families on and after August 1, 2000. 9. The Columbia Heights HRA and the Council acknowledge it is administratively impractical for the Council to immediately execute a new Section 8 HAP contract with each owner leasing a dwelling unit to a family living in Columbia Heights who currently receives Page 2 of 5 Section 8 program assistance through the Columbia Heights HRA. Accordingly, in addition to IR, andy SChUmacher- s8transfer, doc , page3 1 executing new HAP contracts as provided in this Agreement, the Council will execute its own Section 8 HAP contract with each owner leasing a dwelling unit to a family identified in Exhibit A. The Council will execute its own Section 8 HAP contract at the first annual or interim recertification that occurs on or after November 1, 2000 for the families identified in Exhibit A. (a) The Columbia Heights HRA assigns and the Council agrees to assume as assignee all Section 8 HAP contracts identified in Exhibit A. This assignment is effective November 1, 2000. (b) Prior to November I, 2000, the Council will give a written notice to each Section 8 owner and family affected by this Section 8 HAP contract assignment. The written notice will advise the owner and family that the Columbia Heights I-IRA has terminated its Section 8 program and that the Council has assumed responsibility for the Section 8 HAP contract between the owner and the Columbia Heights HRA. The form and substance of the written notice will be developed cooperatively by the Council and the Columbia Heights HRA. The Council will notify HUD in writing of the Section 8 HAP contract assignments. (c) By November 1, 2001, the Council will execute its own Section 8 HAP contract with all owners affected by this Section 8 HAP contract assignment. The execution of a new Section 8 HAP contract with individual owners will occur no later than the time the Council performs the annual or interim reexamination of family income and composition. Certifications and Recertifications 10. The Columbia Heights HRA will perform and complete all annual and interim recertifications, including Housing Quality Standards ("HQS") inspections, that are required through October 31, 2000 for the 101 families currently assisted through the Columbia Heights HRA's Section 8 program. The Council will perform all annual and interim recertifications and HQS inspections that are required on and after November 1, 2000. Claims and Disputes 11. The Columbia Heights HRA will process all vacancy loss claims and pay all vacancy loss claim amounts to owners leasing dwelling units to families receiving Section 8 assistance through the Columbia Heights HRA if the claims were filed with the Columbia Heights HRA prior to November 1, 2000. If the Columbia Heights HRA pays a vacancy loss claim and the family was receiving Section 8 assistance on a portability basis from the Council or some other initial public housing agency, the Columbia Heights HRA may request reimbursement from the Council or other initial public housing agency pursuant to applicable federal portability billing regulations. 12. The Council will process all vacancy loss claims and pay all vacancy loss claim amounts to owners leasing dwelling units to families residing in Columbia Heights if the claims are filed on or after November 1, 2000. If the Council pays a vacancy loss claim and the family Page 3 of $ was not receiving Section 8 assistance on a portability basis, the Columbia Heights HRA will I Ra'n~dy Schumacher - s8transfer, doc Page, 4 reimburse the Council for the vacancy loss amount paid to the owner by the Council. If the Council pays a vacancy loss claim and the family was receiving Section 8 assistance on a portability basis from an initial public housing agency other than the Council, the Council may request reimbursement from the initial public housing agency pursuant to applicable federal portability billing regulations. 13. The Columbia Heights HRA is responsible for all landlord-tenant issues or disputes involving the Columbia Heights HRA or the Columbia Heights HRA Section 8 program, to the extent the participation of the Columbia Heights HRA is reasonably necessary for the parties to resolve their issues or disputes. Program Termination Issues 14. The Council will work cooperatively with the Columbia Heights HRA to identify program issues or work items that need to be addressed as part of the implementation of this Agreement. By November 1, 2000, the Columbia Heights HRA will update and complete its participant files in a form acceptable to the Council which will permit the Council to assume the administration of the Columbia Heights HRA's Section 8 program. The Columbia Heights HRA is responsible for resolving with HUD any issues regarding past and current program budgets, year-end financial statements, and operating and project reserves. Although the transfer of the Columbia Heights HRA federal ACC authority to the Council is not part of this Agreement, the Columbia Heights HRA acknowledges that the Council may in the future explore with HUD the appropriateness of transferring the ACC authority and its associated funding to the Council, including any operating and project reserves that may have accumulated during the administration of the Columbia Heights I-IRA's Section 8 program. Upon request from the Council or HUD, the Columbia Heights HRA will provide reasonable assistance and cooperation in resolving ACC and reserves issues. 15. The Columbia Heights I-IRA will provide the Council and HUD with access to records and files pertinent to its Section 8 program and will, upon request, provide originals or copies of participant files and other records and files necessary for the administration of Section 8 program assistance to families residing in the City of Columbia Heights. Prior Transfer Agreement 16. Any conflicting or contrary term or provision contained' in the December 22, 1997 agreement between the Columbia Heights EDA and the Council governing the administration of the Section 8 program within the City of Columbia Heights is superseded by the applicable terms and conditions contained in this Agreement. HUD Approval 17. This Agreement is subject to HUD review and approval and shall become effective only if approved by HUD. page 4 of 5 IN WITNESS WHEREOF, the individuals signing this Agreement on behalf of the Columbia J R,a~ndy SchUmacher- s8transfer, doc Page 5 Heights Economic Development Authority, the Columbia Heights Housing and Redevelopment Authority and the Metropolitan Council represent that they are authorized to execute this Agreement on behalf of their respective organizations. Subject to HUD approval, this Agreement is effective on the date this Agreement is signed by the Council's authorized representative. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY METROPOLITAN COUNCIL By By Robert Ruettimann President Date Date Jay R. Lindgren Regional Administrator By Walter Fehst Executive Director Date COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY By John Hunter Chair Date By Walter Fehst Executive Director Date Page 5 of 5 EDA RESOLUTION 2000-13 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CONFIRMING APPROVAL OF CALCULATION OF PERFORMANCE FUNDING SYSTEM OPERATING SUBSIDY FOR 2000. WHEREAS, The Department of the Housing and Urban Development has requested that Public Housing Agencies submit the calculation o~'Performance Funding System operating Subsidy for 2000 with attachments; and WHEREAS, such Certification also requires the formal approval of the Board of Commissioners; NOW THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that the attached Calculation of Performance Funding System Operating Subsidy for 2000 and the necessary attachments are hereby approved. ADOPTED THIS MOTION BY: SECONDED BY: AYES: NAYS: day of~,2000. k0bert ~u"'~ti~m,-Pr~sidf - Attest by: Walter R. F~Mt,'Ex~¢Ut(ve Director COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Meetin~ o September 25, 2000 AGENDA SECTION: ORIGINATING DEPARTMENT: EXEC. DIRECTOR NO: EDA APPROVAL ITEM: RES. 2000-t5: Approve Modified BY: Kenneth R. Anderson I~-' ' BY: Redevelopment Plan for CBD DATE: September 20, 2000 t,. Redevelopment Project and TIF Plan for TIF District (Redevelopment) No. 9 ISSUE STATEMENT: Consider adoption of Resolution 2000-15 as the City Council is scheduled to conduct a public hearing and consideration of adoption of Resolution 2000-67 on the proposal to Approve a Modified Redevelopment Plan for the Central Business District Redevelopment Project and a Tax Increment Financing Plan for Tax Increment Financing District (Redevelopment) No. 9 which is for the Transition Block Redevelopment Project (Crest View/Real Estate Equities). BACKGROUND/ANALYSIS: This proposed project consists of constructing 22 affordable rental townhouses and a 50 unit assisted senior living facility. A number of revenue sources have been secured to fund project costs, including tax increment financing (TIF). This is a proposal to provide TIF to the developer dba Columbia Heights Transition Block, LLC. The TIF may be used to pay for land acquisition costs, site improvements, installation of public utilities, administrative expenses, and capitalized interest. The TIF plan anticipates that the increment will be provided to the developer on a pay-as- you-go basis rather than up-front bond proceeds. This type of assistance eliminates the financial liability the City/EDA may be exposed to in that we are only obligated to make TIF payments to the developer after the property taxes are actually paid to Anoka County and a portion is disbursed to the City in the form of tax increment. If taxes are not paid, no increment will be provided to the developer. This will be a redevelopment TIF district which has a maximum term of 25 years. The district boundaries include 4157 Jackson Street, (Ostrander residence), 825 41st Avenue (NEI College of Teclmology), 4156 Central Avenue (City wide Locksmith), and 4150 Central (EDA property, former Columbia Professional Building). The proposed budget for T~ eligible expenditures can be found on page 5 of the TIF Plan and are conservatively estimated to be $4,330,000. The actual costs and term of TIF to be provided to the developer are subject to ongoing negotiation and have not been finalized. This TIF district is subject to a local contribution (LGA penalty) of 5% of the annual TIF generated which must be provided from unrestricted money and cannot be'made from TIF. For this project, we are fortunate in that the $545,000 grant from the Metropolitan Council can be contributed as the local contribution of the City which means no City funds must be contributed for the local contribution requirement. Dan Greensweig, legal counsel with Kennedy and Graven, Chartered, will be present to respond to questions. Keith Jans of Real Estate Equities will make a brief presentation on the project and proposed financing. RECOMMENDATION: The staffand consultants are recommending that the public hearing to be held by the Council be tabled and continued at a future meeting until more progress is made in property acquisition and further analysis is performed for the mount of financing required by the developer. The EDA resolution of approval is contingent upon Council determination that the proposed public financing in "the Plan is adequate, sufficiently detailed, and appropriate." RECOMMENDED MOTION: Move to waive the reading of EDA Resolution 2000-15, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2000-15, being a Resolution Approving a Modified Redevelopment Project and a Tax Increment Financing Plan for Tax Increment Financing District (Redevelopment) No. 9. (Transition Block Redevelopment Project - Crest View/Real Estate Equities). Attachments: EDA ACTION: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 2000 - 15 RESOLUTION APPROVING A MODIFIED REDEVELOPMENT PLAN FOR THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT (REDEVELOPMENT) NO. 9 BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1. Recitals.. 1.01. The City of Columbia Heights ("City") has previously established the Central Business District Redevelopment Project (the "Project") and a redevelopment plan therefor (the "Redevelopment Plan"), originally administered by the Housing and Redevelopment Authority in and for the City of Columbia Heights ("HRA"). 1.02. By resolution approved January 8, 1996, the City transferred the control, authority and operation of the Project from the HRA to the Authority. 1.03. The Authority is acting as set forth herein in order to administer the Authority's development and redevelopment efforts more efficiently, and in accordance with the Redevelopment Plan and pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Law"). Specifically, the Authority finds that action is needed within the expanded Project area to correct blight, prevent the emergence or spread of blight or blighting conditions, and facilitate development of adequate, safe and sanitary dwellings in order to protect the health, safety, morals and welfare of the citizens of the City. 1.04. The Authority has also proposed the establishment within the Project of Tax Increment Financing District (Redevelopment) No. 9 (the "TIF District") and a Tax Increment Financing Plan ("TIF Plan") therefor, pursuant to the HRA Law and Minnesota Statutes, Sections 469.174 through 469.179 ( the "TIF Act"). 1.05. The Authority has caused to be prepared a document titled "City of Columbia Heights, Minnesota, Columbia Heights EDA Tax Increment Financing Plan for Tax Increment Financing District (Redevelopment) No. 9 (Transition Block Redevelopment Project - Crest View/Real Estate Equities)" (the "Plan"). 1.06. The City Planning and Zoning Commission has provided a written comment to this Board finding that the Plan is consistent with the comprehensive City plan. 1.07. The Authority has reviewed and discussed with the proposed developer of the redevelopment described in the Plan the developer's proposed financing for such redevelopment and on the basis of that review has determined that the proposed public financing set forth in the Plan is appropriate. Section 2. Plan Adopted; Further Proceedings. 2.01. The Plan is hereby approved and adopted, and the Redevelopment Plan is hereby modified accordingly. 2.02. The Board hereby makes all the findings set forth in the Plan, which is incorporated herein by reference. 2.03. The Board hereby transmits the Plan to the Council and recommends that the Council hold the required public hearing and adopt the Plan, such recommendation contingent upon the Council's determination that the proposed public financing of the development set forth in the Plan is adequate, sufficiently detailed, and appropriate for such development. 2.04. Upon approval of the Plan by the Council, Authority staff and consultants are authorized to take all actions necessary to implement the Plan, including negotiation and preparation of agreements in connection with development and redevelopment within the TIF District and Project area. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 25th day of September, 2000. President Robert Ruettimann Attest: Executive Director Walter R. Fehst H:kEDA Resolution 2000-15, TIF District No. 9 ..... 09~..~/!0 12:02 FA~..!$12233002 SPRINGS'rED INC, ~002/024 City of Columbia Heights, Minnesota Columbia Heights EDA Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District No. 9 (Transition Block Redevelopment Project- Crest View/Real Estate Equities Project) Dated: September 25, 2000 Prepared by: SPRINGS'TED: INCORPORATED 85 E. Seventh Place, Suite 100 St. Paul, MN 55101-2887 (651) 223-3000 www. springstedocom ..... 09/22/00 12:03 FA/ 6512233002 ~._ SpRINGSTED INC. ~003/024 TABLE OF COHTENTS Section P~ae(sl A. Definitions .................................................................................................................. 1 B. Statutory Authorization .............................................................................................. 1 C. Statement of Need and Public Purpose ..................................................................... D. Statement of Objectives ............................................................................................ 1 E. Designation of Tax Increment Financing District as a Redevelopment District .......... 1 F. Duration of the TIF District and the Three Year Rule...' .............................................. 3 G. Property to be Included in the TIF District .................................................................. 3 H. Property to be Acquired in the TIF District.:....: .......................................................... 3 I. Specific Development Expected to Occur Within the TIF District ............................... 3 J. Findings and Need for Tax Increment Financing ....................................................... 4 K. Estimated Public Costs .............................................................................................. 5 L. Estimated Sources of Revenue ................................................................................. 5 M. Estimated Amount of Bonded Indebtedness ............... : .............................................. 6 N. Original Net Tax Capacity .......................................................................................... 6 O. Original Tax Capacity Rate ........................................................................................ P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment .......... 7 Q. Use of Tax Increment ................................................................................................ 7 R. Excess Tax Increment ............................................................................................... 8 S. Tax Increment Pooling and the Five Year Rule .......................................................... 8 T. Limitation on Administrative Expenses ................................................................. : .... 9 U. IJmitation on Property Not Subject to Improvements - Four Year Rule ...................... 9 V. Estimated Impact on Other Taxing Jurisdictions ........................................................ 10 W. Local Government Aid Penalty .................................................................................. 10 X. Prior Planned Improvements ..................................................................................... 10 Y. Development Agreements ......................................................................................... 10 Z. Assessment Agreements ........................................................................................... 11 AA. Modifications of the Tax Increment F'mancing Plan .................................................... 11 AB. Administration of the Tax Increment Financing Plan .................................................. 11 AC. Financial Reporting and Disclosure Requirements .................................................... 12 Map of the Tax Increment Financing District .......................................................... Assumptions Report .............................................................................................. Projected Tax Increment Report ............................................................................ Estimated Impact on Other Taxing Jurisdictions Report ........................................ Market Value Analysis Report ................................................................................ EXHIBIT 1 EXHIBIT II EXHIBIT III EXHIBIT IV EXHIBIT V ........ ~; .... r~,~ oo~oJUUg SPRINGSTED INC. ~004/024 City of Columbia Heights, Minnesota Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Auth0dty" means the Columbia Heights Economic Development Authority "City" means the City of Columbia Heights, Minnesota; also referred to as a '.Municipality'. 'Ci~/Council' means the City Council of the City; also referred to as the "~,. ',County' means Anoka County, Minnesota. ".CBD' means the Central Business District Redevelopment Project in the City, which is described in the corresponding Redevelopment Plan. ".CBD Plan" means the Redevelopment Plan for th'~ CBD. 'Protect Area" means the geographic area of the CBD. "School District' means Independent School District No. 13, Minnesota. 'State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1791, both inclusive. 'TIF District" means Tax Increment Financing (Redevelopment) District No. '.TIF Plan' means the tax increment financing plan for the TIF District (this document). Section B Statutory Authorization See Section A of the CBD Plan for the CBD. Section C Statement of Need and Public Purpose See Section B of the CBD Plan for the CBD. Section D Statement of Objectives See Section D of the CBD Plan for the CBD. Section E Designation of Tax Increment Financing District as a Redevelopment District Redevelopment districts are a type of tax increment financing district in which one or more of the following conditions exists and is reasonably distributed throughout the district: (1) parcels comprising at least 70% of the area of the district are occupied by buildings, streets, utilities, or other improvements, and more than 50% of the buildings (not including outbuildings) are structurally substandard requiring substantial renovation or clearance. A parcel is deemed 'occupied' if at least 15% of the area of the parcel contains some type of improvement; or '~ SPRINGSTED Paoe 1 I 09/22/00 12:03 FAX 6512233002 SPRINGSTED INC. ~005/024 ,, City of Columbia Heights, Minnesota (2) the property consists of vacant, unused, underused, inappropriately used, or infrequently used railyards, rail storage facilities, or excessive or vacated railroad right- of-ways; or (3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in section 115C.02, subdivision 15, if the tank facilities: (i) have or had a capacity of more than 1,000,000 gallons; (ii) are k)cated adjacent to rail facilities; and (iii) have been removed or are unused, underused, inappropriately used, or infrequently used. For districts consisting of two more noncontiguous areas, each area must individually qualify under the provisions listed above, as well as the entire area must also qualify as a whole. The TIF District qualifies as a redevelopment district in that it meets all of the criteria listed in (1) above. The supporting facts and documentation'/or this determination will be retained by the Authority for the life of the TIF District and are available to the public upon request. 'Structurally substandard' is defined as buildings containing defects or deficiencies in structural elements, essential utilities and facilitiesl ligl~t and ventilation, fire protection (including egress), layout and condition of interior partitions, or similar factors. A building is not structurally substandard if it is in compliance with the building code applicable to a new building, or could be modified to satisfy the existing code at a cost of less than 15% of the cost of constructing a new structure of the same size and type. A city may not find that a building is structurally substandard without an interior inspection, unless it can not gain access to the property and there exists evidence which supports the structurally substandard finding. Such evidence includes recent fire or police inspections, on- site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence. A pamet is deemed to be occupied by a structurally substandard building if the folloWing conditions are met: : (1) the parcel was occupied by a substandard building within a three-year period prior to the parcels inclusion in the district; and (2) [f the substandard building was demolished or removed within the three year period, such demolition or removal was performed or financed by the Authority, or was performed by a developer under a development agreement with the Authori~/. In addition, the Authority must have found by resolution before such demolition or removal occurred that the building was structurally substandard and that the Authority intended to include the parcel in the 'i'IF District. In the case of (2) above, the County Auditor shall certify the original net tax capacity of the parcel to be the greater of (a)the current tax capacity of the parcel, or (b)a computed tax capacity of the parcel using the estimated market value of the parcel for the year in which the demolition or removal occurred, and the appropriate classification rate(s) for the current year. At least 90 percent of the tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation as a redevelopment district. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of land, removal of hazardous substances, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the authority may be included in the qualifying costs. ~ SPRING~-I~D Paoe 2 09/22/00 12:04 F~[ 6512233002 SPRINGSTED INC. " City of Columbia Heights, Minnesota Section F Duration of the TIF District and the Three Year Rule Redevelopment districts may remain in existence 25 years from the date of receipt of the first tax increment. This term shall be reduced to 20 years if the Authority elects to delay receipt of the first tax increment until a minimum market value for the TIF Distdct is reached or exceeded, or four years have elapsed from the date of certification, whichever is earlier. Modifications of this plan (see Section AA) shall not extend these limitations. The Authority does not elect to delay receipt of the first tax increment. The Authority reserves the right to allow the TIF District to remain in existence the maximum duration allowed by law (projected to be through the year 2028, but anticipates that the TIF District will be decertified prior to that time (see Section P). All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the Authority. -. In addition, no tax increments shall be paid to the Authority from the TIF District after three years from the date of certification unless within that time period: (1) bonds have been issued in aid of the Project Area (except revenue bonds issued pursuant to bLS. Sections 469.152 to 469.165); (2) the Authority has acquired property within the TIF District; or (3) the Authority has constructed public improvements within the TIF District. Section G Properly to be Included in the TIF District The TIF District is a 3 Parcel, 7.2 acre area of land located within the Project Area. A map showing the location of the TIF District is shown in Exh~it I. The boundaries and area encompassed by the TIF District are described below: Parcel iD_Number 35-30-24-14-0091 35-30-24-14-0092 35-30-24-14-0096 35-30-24-14-0141 Lot 1, except the south eleven (11) feet, Block 38, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota. Lot 2 and the ,South eleven (11) feet of Lot 1, Block 38, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota Lots 29 and 30, Block 39, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota. Lot 1, Block 2, Northwestern Add/tion, Anoka County, Minnesota. The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above. · ~ection H Prope~ to be Acquired in the TiF District The Authority may acquire and sell any or all of the property located within the TIF District; however, the Authority does not anticipate acquiring any such property at this time. ~'~ SPRING.,,t ~.D Paae 3 09/22/00 I2:04 FAX 6512233002 SPRINGSTEI) INC. ~007/02~ · . City of Columbia Heights, Minnesota Section I Specific Development Expected to Occur Within the TIF District The proposed 'I'IF District is intended to assist two projects. The first is a 22-unit affordable towuhome project of which 3 units will be under the MHOP Program and 19 wfll be taxable. They will be 2, 3 and 4 bedroom units with floor-plans ranging from 1,150 to 1,575 sq. ft. The second project will be a 50.-unit assisted living arrangement building. These will be smaller apartment-style units. The facility is expected to be fully constructed in 2001 and be 100% assessed and on the tax rolls as of January 2, 2002 for taxes payable in 2003. At the time this document was prepared there were no signed construction contracts .with regards to the above described development. . Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the fo;lowing findings: (1) The TIF District qualifies as a redevelopment district; See Section E of this document for the reasons and facts supporting this finding. (2) The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investrne~t within the reasonably foreseeable future, and the increased market value of the site that could reasonably be expected to occur without the use of tax increment would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan;.' The reasons and facts supporting this finding are that the developer has represented to the Authority that it would not undertake the proposed development without the assistance of tax increment financing. Private " investment will not finance these, development activities because of prohibitive costs, it is necessary to finance these development activities through the use of tax increment financing so that other development by prfvate enterpri~.e will occur within the Project Area. A comparative analysis of estimated market values both with and without establishment of the TIF Distdct a~d the use of tax increments has been performed as described above and is shown in Exl~ibit V. This analysis indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estfmated ' market value of the site absent the establishment of the TIF District and the use of tax increments. (3) The TIF Plan conforms to the general plan for development or redevelopment of the City as a whole; and The reasons and facts supporting this finding are that the TIF District is, or will be, properly zoned, and the TIF Plan has been approved by the =City Planning and Zoning Commission and will generally complement and serve to implement policies adopted in the City's comprehensive plan. (4) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the Project Area by private enterprise. '~ 5PRINGb~t-t:D Pane 4 09/22/00 i2:04 FAX $$12233002 SPRINGSTED INC. ~005/024 · City of Columbia Heights, Minnesota The reasons and facts supporting this finding are that the development activities are necessary so that development and redevelopment by private enterprise can occur within the Project Area. Seotlon K Estimated Public Costs The estimated public costs of the TIF District are listed below. reimbursement from tax increments of the TIF District. Such costs are eligible for Land/building acquisition Site improvements/ preparation costs Installation o~ public utilities Loan interest payments Ac~ministrative expenses Capitalized Interest Subtotal Transfers out Total Tax Credit Senior Ostrander ,~chool Total $245,000 $550,000 $140,000 $ 935,000 225,000 215,000 30,000 $325,000 795,000 50,000 25,000 75,000 1,850,000 375,000 300,000 4,330.000 0 $520,000 $790,000 $170,000 $325,000 $4.330,000 The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased. Section L Estimated. Sources of Revenue: Tax increment revenue Interest on invested funds Loan proceeds Real estate sales Grants Subtotal Transfers in Total $4,330,000 0 0 0 0 4,330,000 0 The Authority anticipates providing financial aSSistance to the proposed development through the use of a pay-as-you-go technique. As tax increments are collected from the TIF District in future years, a portion of these taxes will be distributed to the developer/owner as reimbursement for public costs incurred (see Section K). The Authority reserves the right to finance any or all public costs o~f the TIF District using pay- as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The Authority also reserves the right to use other [~ SPRING3TI~D Paae 5 09/22/00 12:05 FAX $$12233002 SPRINGSTF.,D INC. ~009/024 · . C'./ty of Columbia Heights, Minnesota sources of revenue legally applicable to the Project Area to pay for. such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and Investment income. Section M Estimated Amount of Bonded Indebtedness The Authority does not anticipate issuing tax increment bonds to finance the estimated public costs of the TIF District, but reserves the right to Issue such bonds in an amount not to exceed $2,480,0o0. Section N Original Net Tax Capacity The County Auditor shall certify the original net lax capacity of the 'I-IF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July I and December 31, inclusive, this value is based on the,current assessment year. The Estimated Market Value of all property within the TIF District as of January 2, 2000, for taxes payable in 2001, is approximately $321,458. This is an estimate of the estimated market value of taxable property following the necessary re-platting of parcels. Upon establishment of the TIF District, and subsequent reclassification of properly, it is estimated that the original net tax capacity of the TIF District will be approximately $4,932. Each year. the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or (4) changes In property classification rates. Section O Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of the 'I'IF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (b) the odginal tax capacity rate of the 'FIF District. At the time this document was prepared, the sum of all local tax rates that apply to property in the TIF District, for taxes levied in 2000 and payable in 2001, was not yet available. When this total becomes available, the County Auditor shall certify this amount as the original tax capacity ~ate of the ]'IF District. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 1999 and payable in :)000, is 132.510% as shown below. Taxin,q: Jurisdiction City of Columbia Heights Anoka County Independent School District # 13 Other Total 1999/2000 Local Tax Rate 30.147% 28.125% 66.465% 7.773% 132.510% ~ SPRINGSTI:D Pacle 6 · ~:ua r~u~ oalzz~aoo2 SPRINGSTE2) INC. ~010,'024 ' · City of Columbia Heights, Minnesot.-. section p Projectm:l Retallle(l Captured Net Tax Capacity and Projected Tax Increment Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax cspacily of the TIF District. For communities affected by the fiscal disparity provisions of Minnesota Statutes, Chapter 473F and Chapter 276A, the original net tax capacity of the TIF District shall be determined before the application of fiscal disparity. In subsequent years, the current net tax capacity shall either (a) be determined before the application of fiscal disparity or (b) exclude the product of any fiscal disparity increase in the TIF District (since the original net tax capacity was cerUfied) times the appropriate fiscal disparity ratio. The method the Authority elects shall remain I~e same for the life of the TIF District, except that a single change may be made at any time from method (a) to method (b) above. The City elects method (b). The County Auditor shall certify to the Authority the amount of captured net tax capacity each year. The Authority may choose to retain any or all of this amount. It is the Authority's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Exhibit II g/vas a listing of the various information and a~sumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit Ill which shows the projected tax increment generated over the anticipated life of the TIF District. Section Q Use of Tax lnorement Each year the County Treasurer shall deduct 0.25% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund..Such amounts will be approprfated to the State Auditor for the cost of financial reporting and auditing of tax increment. financing information throughout the state. Exh~it III shows the projected deduction for this' purpose over the anticipated life of the TIF District. .. The Authority has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: · (1) pay for the estin~ated public costs ot the TIF District (see Section KO and County administrative costs associated with the TIF District (see Section '1'); (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision la; or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards involved waive this requirement, Tax increments shall not be usad to cimumvbnt levy Ilmitatlons applicable to the City. ~ SPRINGSi I~D Paoe 7 I 09/2~/00 12:05 FA~ 6,512233002 SPRINGSTED INC. ~011/021 · - City of Columbia Heights, Minnesot~ Tax increment shall not be used to finance the acquisition, cor~. truction, renovation, operation, or maintenance of a building to be used primarily and regularlyjfor conducting the business of a municipality, county, school district, or any other local unit of govemment or the State or federal government. This prohibition does not apply to the construction or renovation of a parking structure, a common area used as a public park, or a facility, used for social, recreational, or conference purposes and not primarily for conducting the business of the community. If there exists any type of agreement or arrangement provid,'ing for the developer, or other beneficiary of assistance, to repay all or a portion of the assurance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at lasts than the cost of aen.i~i~nn ,.,, air market value, grants, ground or other leases at less the~. fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Section R Excess Tax Increment " In any year in which the tax increments from the TIF District ~xceed the amount necessa~ to pay the estimated public costs authorized by the TIF Plan, th~ Authority shall use the excess tax increments to: ~ (1) prepay any outstanding tax increment bonds; ~ (2) discharge the pledge of tax increments thereof; i (3) pay amounts into an escrow account dedicaied to the payment of the tax increment bonds; or = I (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County l Auditor must report to the Commissioner of _Education the amount o_l any excess tax increment redistributed to the School District within 30 days~ of such redistribution. / Section S Tax Increment Pooling and the Five Year Rule At least 75% of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated pu ~lic costs of the TIF District (see Section E for additional restrictions). No more than 25% of the tax increments may be spent on costs outside of the TIF District but within the boundaries of debt service on credit enhanced bonds. All administrative e) been spent outside of the TIF District. Tax increments are within the TIF District if such amounts are: (1) (2) (3) (4) ~ SPRINGsTIiD he Project Area, except to pay 13enses are considered to have :onsidered to have been spent actually paid to a third party for activities pedorr ~ed within the TIF District within five years after certification of the district; used to pay bonds that were issued and sold t~3 a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the rrve-y~ar period or a reasonable temporary period or are deposited in a reasonably required reserve or. replacement fu~d. used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF bistrict, which were entered into within five years after certification of the district; (~r used to reimburse a party for payment o! eligible costs (including interest) incurred within fh/e years from certification of theldistrict. Paae 8 09/22/00 12:06 F~I 6512233002 SPRINGSTED INC. ~012/024 City of Columbia Heights, Minnesota Beginning with the sixth year following certification of the TIF District, at least 75% of the tax: increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF Dist~ct must be decertified. The Authority does not anticipate that tax increments will be spent outside of the TIF District (except for allowable administrative expenses); however, the Authority does reserve the right to allow for tax Increment pooling from the TIF Distdct in the future. Section T I..imltatlon on AdministreUve EXpenses Administrative expenses are defined as all costs of the AUthority other than: (1) amounts paid fo~the purchase of land; (2) amounts paid fo~ materials and so'ices, including architectural and engineering services directly connected with the physical development of the real property in the project; , (3) relocation benefl.'ts paid to, or services provided for, persons residing or businesses located in the project; (4) amounts used t~ pay principal or interest on, fund a reserve for, or' sell at a discount bonds issued pursuant to section 469.178; or (5) amounts used t~ pay other financial obligations to the extent those obligations were used to fin .a~ce costs described in clause (1) to (3). Administrative expenses includi~ amounts paid for services provided by bond counsel, fiscal consultants, planning or econo~nic development consultants, and actual costs incurred by the County in administering the TIF Dis~ct. Tax increments may be used to pay administrative expenses of the 'I'IF District Ul~ to the lesser of: (a) 10% of the total estimated public costs authorized by the TIF Plan or (b:) 10% of the total lax increment expenditures for the project. Section U Limitation on P~perty Not Subject to Improvements - Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an ladjacent street has commenced on a parcel located within the TIF District, then that parcel s~. all be excluded from the TIF District and the original net tax capacity shall be adjusted accord{ngly. Qualified improvements of a street are limited to construction or opening of a n~w street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. IThe Authority must submit to the County Auditor, by Februa~ 1 of the fifth year, evidence thai the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the Authority or owner of the parcel subsequently commences any,)f the above activities, the Authority shall certify to the County Auditor that such activity has ~ ~mmenced and the parcel shall once again be included in the TIF District. The County Audito 'shall certify the net tax capacity of the parcel, as most recently certified by t~e Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF DistricL SPRINGS 1 kD Paoe 9 09/22/00 12:06 FAX 6512233002 SPRINGSTED INC. ~]013/024 ,. i City of Columbia Heights, Minnesota i Section V Estimated Impa~ on Other Taxing Jurisdictions .. reE~t !bit !V sh. ows.the, e. stimated, !.mpa. ct. on_.other .tax. lng jurisdictions if the maximum projected / ameo captureo net tax capa,c..it7 o! the Hr- uis~rict was hypothetica~y available to the other taxing jurisdictions. The Author. believes that there will be no adverse impact on other taxing jurisdictions during the life of ti'ia TIF District, since the proposed development would not have occurred without the establishr~ent of the TIF District and the provision of public assistance. A positive impact on other taxing ~udso'mtions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. / Section W Local Governme~ nt Aid Penalty Tax increment financing district, established or expanded after April 30, 1990 may cause a reduction in the local government aid (LGA/HACA) received by the City from the State. For tax increment financing plans apprbved on of after July 1, 1995, the City may elect at the time of S · · I . . uch approval to make qualifying local contnbutmons to the project, and thereby be exempt from any loss of local government aid.'. " / For redevelopment districts th,~se contributions must equal 5.0% of the annual increment gmlerated by the district. If the City elects to make the local contribution but fails to do so in any year, a reduction in local g(~vemment aid will occur. The loss of aid will equal the greater of 1) the required local contributk3n or 2) the loss of aid which would have been incurred had the local contribution election not b~en made. / Local contributions must be m,~e out of unrestricted money and may not be made, directly or indirectly, with tax increments d~r developer payments. The contributions must be used to pay project costs and cannot be used for general government purposes or for costs which would have been incurred absent the~ project. The Authority may request contributions from other local governmental entitles that will benefit from the establishment of the district. The City elects to make the qua lifying local contributions to the project. :. Section X Prior Planned Improvements The Authority shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a lis, ting of all properties within the TIF District for which buildin permits have been issued durihg the 18 months immediately preceding approval of the TIFg Plan. The County Auditor shal{ increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building pe Tnits issued in the last 18 months in conjunction with any of the properties within the TIF Distdct Section Y Development A reements If within a project containing redevelopment district, more than 25% of the acreage of the property to be acquired by the Authority is purchased with tax increment bonds proceeds (to which tax increment from the p!operty is pledged), then pdor to such acquisition, the Authority must enter into an agreement for the development of the property. Such agreement must provide recourse for the Authorii ~ should the development not be completed. The Authority anticipates enteri into an agreement for development, but does not anticipate acquiring any property located thin the TIF District. ~1S1)RING$-I-~:D Paoe 10 u~,'~:/uu 1~:07 F.~ $$12233002 SPR[NGSTED INC. ~01~/024 · ' Cih/of Columbia Heights, Minnesota · ~on Z As~e,~me nt .Ag~...r~nb The Authodty may, upon eniering into a clevelopmen! agreement, a~o enter into an assessment agreement with th~ developer, which establishes a minimum market value of the land and improvements for eacl year during the life of the TIF District. The assessment agreement sh;, il be presented to the County or City Assessor who shall review the plans and specifications foi the improvements to be constructed, review the market value previously assigned to the lan, i, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. ThE assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this a( reement must first be approved by the City, County and School District. i ' The Authority cloes not antfcipa entering into an assessment agreement. Section AA Modifications o,f the Tax Increment Financing Plan Any reduction or enJargement~n the geographic area of the Project Area or the T1F District; increase in the amount of bor~ded indebtedness to be Incurred; increase in the amount of capitalized interest;, increase inJthat portion of the captured net tax capacity to be retaiaed by the Authority;, increase in the t~tal estimated public costs; or designation of additional property to be acquired by the Author)ty shall be approved onJy after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modifica ion is elimination of pamels from the TIF District; and · (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of ti' ose parcels in the TIF District's. original net tax capacity, or the Authority agrees [hat the. TIF District's original net tax Capacity will be reduced by no more than the current net tax capacity of the parcel~ eliminated. The Authority must notify the ( ounty Auditor of any modification that reduces or enlarges the geographic area of the TIF Dist: Jct. The geographic area of the TIF District may be reduced but not enlarged after five years foil )wing the date of certification. Section AB Administration ~f the Tax Increment Financing Plan Upon adoption of the TIF Plan, :the Authority shall submit a copy of such plan to the Minnesota Department of Revenue. The ~.uthodty shall also request that the County Auditor certify the original net tax capacity and n ;t tax capacity rate of the 'I'IF District. To assist the County Auditor in this process, the ,~ uthodty shall submit copies of the TIF Plan, the resolution .establishing the TIF District al d adopting the TIF Plan, and a listing of any prior planned improvements. The Authority si ~all also sen(~ the County Assessor any assessment agreement establishing the minimum mart(,.~t value of land and improvements in the TIF District, and shall request that the County Assess( review and certify this assessment agreement as reasonable. The County shall distribute to the Authority the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained cap ured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, administering and implementin( basis: ~ SPRINGS z'i~D · changes in property classification rates or formulas. In the TIF Plan, the following actions should occur on an annual Paoe 11 09/22/00 12:07 F~Z 6512233002 SPRINGSTE3) INC. (2) (3) years. Request.* rates in subsequ each year the (: capacity of the 1 occur as a result (a) the value added to shall also (b) the (c) City of Columbia Heights, Minnesota prior to July 1, the Authority shall I notifv the Countv Assessor of any new development thai has occurred in the TIF'District duri~'g the past year to insure that the new valu~ will be recorded in .a timely manner. if the County Auditor receives the request for certification of a new TIF District, or for modification ~)f an existing TIF District, before July 1, the request shall be recognized in d~termining local tax rates for the current and subsequent levy received on or affer~ July 1 shall be used to determine local tax ;nt yearn. ,~unty Auditor shall certify the amount of the original net tax IF District. The amount certified shall reflect any changes that of the following: · of property that changes from tax-exempt to taxable shall be the original net tax capacity of the TIF District. The reverse apply; ... origi~al net tax capacity may be modified by any approved enlargement or reduction of the TIF District;, if laws go coming the classific~, tion of real property cause changes to the · percenta~e of estimated market value to be applied for property tax purposes, then the resulting in,~rease or decrease in net tax capacity shall be applie~ I proportionately to the original net tax capacity and the retained captured let tax capacity of the TIF District. The County Auditor shall notify ',he Authority of all changes made to the original net tax capacity of the TIF District. I . I Section AC Financial Rel~3r~i,'ng and Die¢loaur~ Requirements The State Auditor shall enforce Ibe provisions of the.TIF Act and shall have full responsibility for financial and compliance audit ng of the Authority'~ use of tax increment financing. On or before August 1 of each year, l~e Authority must annually submit to the State Auditor, County Auditor and to the goveming b~ ~j of the municipality a report which shall: (1) provide full disclo (2) permit compads¢ (3) permit auditing (4) be consistent witl The report shall include, among (1) the original net subdivision 1; (2) the net tax capac (3) the cal~tured net (4) any fiscal dispar~ 469.177, subdivi~ (5) the captured net subdivision 2, pa~ ~ SPRING:~I~Eu ~ure of the sources and uses of public funds in the TIF District; and reconciliation it the accounts and financial reports; the funds expended' on behalf of the TIF District; and Iigenerally accepted:accounting principles. &thor items, the follo,'wing information: ax capacity of the ~listrict and any subdistrict under 469.177, ~y for the reporting I~eriod of the district and any subdistrict; ~x capacity of the di,~trict; ~ deduction from the captured net tax capacity under section )n 3; ~( capacity retainedifor tax increment financin0 under 46g.177, graph (a), clause (1); Paae 12 09/22/00 1Z:07 FA/ 6512233002 SPRINGSTE3) INC. 016/024 .... (6) (8) (9) (10) (11) (12) (13) (14) 05) City of Columbia Heights, Minnesot-" any captured netitax capacity distri .b~ted among affected taxing districts under 469.177, subdivision 2. paragraph (a), clause (2); the type of district; the date the municipality approved thb tax increment financing plan and the date of approval of any modification of the tax increment financing plan. the approval of which requires no{ice, discussion, a public headng, and findi/lgs under subdivision 4, paragraph (a); the date the auth.erity first requested.certification of the original net tax capacity of the district and .Ithe date of request for certification regarding any parcel added to the district; the date the couhty auditor first certified-the original net tax capacity of the district and the date of certification of the original net tax capacity of any parcel added to the distribt; the month and year in which the,authority has received or anticipates it will receive the first increment from the district; the date the distd~t must be dece~fled; for the reporting p~riod and prior years of the district, the actual amount received from, at least, the :following categories: '(i) tax increments paid by the captured net tax capacity retained for tax increment hnancing [ruder section 469.177, subdivision 2, paragraph (a), clause (1),! but excluding any excess taxes; (ii) tax increm,~nts that are interest or other investment earnings on or from tax increments; (iii) tax increm~ents that are proceeds from the sale or lease of property, tangible or!intangible, purchasL~d by the authority with tax Increments; (iv) tax increments that are repayments of loans or other advances made by the authority with tax incremer~ts; ,. (v) bond or loan proceeds; (vi) special assessments; (vii) grants; and (viii) transfers from funds not exclusively associated with the district; for the reporting !period and for th.~ prior years of the district, the amount budgeted under ;the tax increment, financing plan, and the actual amount expended for, at least, the following categories: (i) acquisition!of land and buildings through condemnation or purchase; (ii) site impro~ments or preparation costs; (iii) installation i of public utilities, ~arkina facilities, streets, roads, sidewalks, or other s~mllar public ~mprove,rnents; (iv) administrate costs, including ithe allocated cost of the Authority; and (v) public park facilities, facilitiee for social, recreational, or conference purposes, ,~r other similar public Improvements; and (vi) transfers t(~ funds not exclusively associated with the district; 1 I for properties sold to developers, the; total cost of the property to the Authority and the price paid iby the developer; ' ~ SPRINGSTED Paae 13 09/22/00 I2:06 F~ 6512233002 SPRINGST]Z]) INC. ~017/024 City of Columbia Heights, Minnesot,.~ (16) the amount of any payments and th6 value of in-kind benefits, such as physical improvements and the use of building space, that are paid or financed with tax increments and are provided to another governmental unit other than the municipality durfng the reporting per~,'; (17) the amount of any payments for activities and improvements located outside of the district that are paid for or finance~l with tax increments; (18) the amount of payments of prblcipal and interest that are made during the re, porting period on any nOn-defeased: (i) general obligation tax increme'nt financing bonds; (ii) other tax increment financing bonds; and (iii) notes and pay-as-you-go contacts;. (19) the principal amount, at the end of the reporting period, of any non-defeased: (i) general obligation tax increr~ent financing bonds; (ii) other tax increment financing bonds; and (iii) notes and pay-asTyou-go contracts; (20) the amount of principal and interest payments that are due for the current calendar year on any non-defeased: ' (i) general obligation tax incremeht financing bonds;" (ii) other tax increment financing bonds; and (iii) notes and pay-as-you-go con~acts; (21) if the fiscal disparities contribution under chapter 276A or 473F for the district is computed under section 469.177, subdivision 3, paragraph (a). the amount of increased property taxes imposed on other properties in the municipality that approved the tax increment financing plan as a result of the fiscal disparities contribution; "; (22) whether the tax increment financing plan or other governing document permits increment revenues to be expended; ' (i) to pay bonds, the proceeds !of which were or may be expended on activities outside of the district; (ii) for deposit into a common lbond fund from which money may be expended on activities Iocatedioutside of the district; or (iii) to otherwise finance activities located outside of the tax increment ~ financing district; and (23) any additional information the state auditor may require. The Authority must also annually publish in a news. paper of general circulation in the City an annual shat~ment for each tax increment financing diStri~ showing: (1) (2) (3) the original net tax capacity ol= the c~istrict and any subdistdct under 469.177, subdivision 1; the net tax capacity for the reporting ,l~riod of the district and any subdistrict; the captured net tax capacity of the district: ~] SPRINGS'i ~D Paoe 14 · ~:uo r~ oolaaoouoa SPRINGSTED INC. City of Colur~bia Heights, Minnesota (4) the month and year in which the ~uthority bas received or anticipates it wil~- *~'eceive the first increment from the district; '. (5) the date the district must be dm erti y ~j sec oaligations; (7) if the fiscal disparities conth'but~on ~ ~r~der chapter 276A or 473F for the district Js computed under section 469.1j77, s~:livision 3, paragraph (a). the amount of increased property taxes im..p~ed o:n other properties in the municipali that approved the tax increment financinh nlan as ..... ,, _, ,,_ ....... ry. contribution; -I i= ,- ,~ ,=ou,, u, mu nsca~ aisparitles (8) the amounts of tax increment r~lceive~.and expended in the reporting period; (9) and any additional information t~e authority deems necessan]. The annual statement must inform readers t~lat a~lditional i,,' .... ,: ............ may be obtained from the authority, and mu~.~' e~pJain how 't~;' a"~l~'~nar~gina~rnmgat~-oanCnmOa;t'rl~c~ requested. The Authority must publish the annual s~atement for a year no later than August 15 of the next year. The authority 'must idenb~fy th~ newspaper of general circulation in the municipality to which the annual statement hbs be~n or will be submitted for publication and provide a copy of the annual statement to the court, board, county auditor, the school board, , the state auditor, and the governing body of t~e mu,nicipality on or before August 1 of the year in whlcl~ the statement must be published. The reporting and disclosure requirements ou ~lined n this section shall begin with the year the district was certified, and shall end in the year n which both the district has been decertified and all tax increments have been spent or returne~! to ~ county for redistribution. Failure to meet these requirements, as determined by the Slate ~ditors Office, may result, in suspension of distribution of tax increment. ~ SPR'ING$~I'ED Paae 15 I 09/22/00 12:08 FA~ $512233002 SPRINGSTED INC. ~019/02~ EXHIBIT I ' , I I I I I l' I .~ ' · ' ~ ~,.. , ~ . . Central ~venu~ NE " Tax In~rement Financing District Ho.'9 J_ J (Redewlopmet U~/22/00 12:09 FAX ~512233002 SPRINGSTED INC. EXHIBIT I (Continued) 09/22/00 12:09 FA~ 6512233002 SPRINGSTED INC. ~021/024 C~ ~f C~umb~ He~lm~, Minn~ta T~x Incmmer~ Financing (R~developme~t) District Se, enado A Type ~ TaX Incmnent Financing District Maximum DuralJon o~ TIF District R~clevelolmmnl 25 y~ from l~t inaement 10/01/00 ~2/01/21 (20 Ye&~ o~lncmme~t) EXHIBIT II Base Eslima~d M~Iu~I Value (UHTC) Base Estimate~ Ma~t Value (Seaior) T~ C~ ~ (U~) Trees: ~ ~ (~ 1.00% 2.40% $198.77g S122.$78 1,9~ $4,932 Oaae EMimaled MaWe/VaJue (EMV). Decrease i~ EMV (O~mo) Incream in EMV (UHTC)(1) Increase in EMV (seniorX:~) Total EMfmat~ MaI~II Value ~ ClaSz 4d (MHTC) Market Ra~ (Senior) Totel Ne~ Tax (:;~city 2.40% 2000/2001 A~~ Y~r 2001/2002 20O2/2003 ~321A$8 0 0 0 ~12.1,458 ~321,4~8 $321.4~8 o (4g.~o) (49.2oo) 0 1,515.000 1.61S.000 0 3.250,000 3,2~0.000 F,321,458 :~321,458 ~5,1~7,2.58 S5,137,2~e o o ls,13e 0 O 79,753 79.763 $97,901 $97,901 Bas~ Inflation Factm' ,. Local Tax Cap~ity Rate F'mcal Disparities Contribution From '}'IF District Administrative Reteinage Pen:ent (maximum = 10%) Poormg Pemeat City Tax Rate (Only if Local. Effmt TIF) NA 132.510% NA 10.00% 0.00% NA 1999/00 Bonds ~1. Daled NA First Interest Date NA Undwwfite~ Dismunt NA Note Dated lO/01/00 Note Rate 8.0O% Y~ 36.16% 1999/00 91.80% 199~..'00 IdA NA ~ 0101100 5.50% (1) Based on 19 taxable units (out M22 total) (~$85,000/unit. (2) Based on 50 units ~ $85,000/unit. Prepared by: Sprmgsled I'ncorporat~d (print~cl ~ 9/22/00 at 9:25 AM) Redevelopment O~tric~ - Bolh - non-Ga~ conl~ib..xl&A~suml~ons u~/~2/00 ~2:0~ FAX 85122~$00~ SPRINGSTEI) INC. u~;;/uu z::zu ~'.~ oslx2~ooo2 SPRI~GSTED I~C. ~022/021 EXHIBIT IV 09/22/00 12:10 FAX $$12233002 SPRINGSTED INC. ~024/024 .~ EXHIBIT V C~y of Columb~ Heights, Minne~ota Tax Increment RnanGing (~opm~) ~.~ No. g ~sls~ ~n~ Pmj~ ~o A Assumption-. Present Value Dale ' P.V. Rata - O~ T.I. 10/01/130 5.50% Increase in EMV With TIF Dbt~ct Less: P.V of Gross Tax Increment Subtotal Leas: Increase in EMV Without TIF Difference $I .615,000 2,335.321 ($720,321) 0 ($720,321) 'Year I 2003 2 2OO4 3 2005 4 20O6 $ 2007 6 2OO8 7 2009 8 2010 9 2011 10 2012 11 2013 12 2014 13 2015 14 2015 15 2017 16 2018 17 2019 18 2020 19 2021 20 2022 21 2023 22 2024 23 2025 24 2026 25 2027 26 2028 Annual Grosa Tax Increment Preseflt Value 5.50~ 123,103 128,382 133,779 139,392 148,229 151,299 157,613 164,179 171,007 178,109 185,495 193,176 201,164 209.472 216,113 227.099 236,444 246,'/83 256,271 266.783 277.716 289,066 300.911 313.209 325.999 339,300 $5.57'8,593 104,913 103,632 102,359 101,093 99,838 98,586 97.346 96,115 94,89+ 93.682 91,289 90,10~ 88.938 67.779 86,031 85,493 83,253 82,149 81,058 79.978 7B,g09 7'7,852 76,607 75,773 $2.335,321 l~'epm'~l by: Springsted Incorporated (9/22/00) CITY OF COLUMBIA HEIGHTS 590 40TH AVENUE N.E., COLUMBIA HEIGHTS, MN 55421-3878 (612) 782-2800 TDD 782-2806 EDA COMMISSIONERS Robert W. Ruettimann Patricia Jindra Donald G. Jolly Marlaine Szurek Gary L. Peterson Julienne Wyckoff John Hunter PLEASE NOTE: CITY HALL PHONE NUMBERS HAVE CHANGED. NEW NUMBERS ARE: MAIN NUMBER (763)706-3600; TDD (763)706-3691 ECONOMIC DEVELOPMENT AUTHORITY September 22, 2000 Elizabeth Ryan Director of Housing and Livable Communities Metropolitan HRA Mears Park Centre 230 East 5~h Street St. Paul, MN 55101-1626 RE: Columbia Heights Section 8 Program Administration Transfer Dear Ms. Ryan: This letter is being forwarded as a formal proposal to the Metropolitan HRA regarding transfer of the Columbia ~"~?eights Section 8 Program Administration to the Metropolitan I-IRA. This proposal is being submitted at the ,irection of the Columbia Heights EDA upon consideration of these issues at their special meeting of September 25, 2000. The EDA is requesting to transfer the total administration of the Columbia Heights Section 8 Program to the Metropolitan I-IRA. Our program includes 25 certificates and 25 vouchers awarded initially to the Columbia Heights HRA, per the annual contributions contract with the U.S. Department of Housing and Urban Development. The EDA Board has determined that it is in the best interests of the city and the Section 8 Program to transfer the administration of the program to the Metropolitan HRA, so as to better meet the needs of the participants, and to promote effective and efficient use of resources. Over the past few weeks, we have greatly appreciated your staff's willingness to meet and discuss this proposed transition.' Their technical assistance has been instrumental in the progression of the steps necessary to meet this goal. We look forward to your favorable consideration of this agreement. Sincerely, Robert W. Ruettimann President /-~conomic Development Authority Walter R. Fehst Executive Director Economic Development Authority THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER COUNTY OF ANOKA Office of the County Board of Commissioners GOVERNMENT CENTER 2100 3rd Avenue · Anoka, Minnesota 55303-2265 (763) 323-5700 September 21, PAUL McCARRON Anoka County Commissioner District #6 - Blaine - Circle Pines - Fr';dley - Spring Lake Park MEMO TO: Anoka County Cities, Townships and Public Services FROM: Commissioner Paul McCarron SUBJECT: Restructuring the Community Development Block Grant Program (CDBG) As you are aware, for the past four years Anoka .County has been scrutinized by the Department of Housing and Urban Development (HUD) for the way we administer our CDBG program. There are three main areas of concern: (1) It is hard to meet the goals HUD requires in the Consolidated Plan because each municipality receives an allocation of CDBG funds and determines the project which do not necessarily coincide with the priorities; (2) Anoka County has too many projects for smaller dollar'amounts which has made it difficult to track; and, (3) The CDBG funds are not be spent in a timely manner. .. In past written reviews from HUD, they have recommended that "the county advertise the · availability'of CDBG funds and finance directly those projects consistent with the highest priorities of the county." In other words, offer the CDBG funds on a competitive basis and only fund those. projects that meet a high or medium priority identified ih the Conso. lidated Plan. Changing the program to a county-wide, competitive basis will mean less time tracking small individual projects and more time available for administering larger commt3nity-wide programs. As'a result and as previously discussed, the Anoka County HRA has decided to'move ahead to structure the CDBG program to a more competitive program effective for the 2001 Program Year (July 1, 2001 - June 30, 2002). We believe by restructuring the CDBG program that, all parties involved will benefit. (1) Cities will have equal access to a larger pool of funds; (2) Private non- profit public services would only have to submit one application and attend one public hearing; and (3) We will be fulfilling all the recommendations made by HUD. The HRA will be conducting a future meeting to develop criteria and procedures for the competitive program. We will keep you posted on further developments. If you have any questions please Call Jennifer Bergman at (763) 323-5709. Mailing Address: P.O. Box 32610,' Fridley, Minnesota 55432 FAX: 763-323-5682 Affirmative Action / Eq~. pportunity Employer TDDFI-I'Y: 763-323-5289 ] COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: September 25, 2000 AGENDA SECTION: ORIGINATING EXECUTWE NO: DEPARTMENT: EDA DIRECTOR .~- ITEM: Approve Relocation Proposal from BY: Kenneth Anderso BY: Wilson Development Services. DATE: September 25, 2000' ISSUE STATEMENT: This is a request to approve using the professional relocation services of Wilson Development Services. BACKGROUND: The City of Columbia Heights and Columbia Heights Economic Development Authority have utilized relocation consultants to assist with the various property acquisitions throughout the City. The Federal Uniform Relocation Act requires that relocation and moving costs be payed by a governmental entity acquiring the property. City staff and the City Attorney have had several conversations with the owners of the two single family structures at 3718 Central Avenue and 3722 Central Avenue N.E. On September 22, 2000 the Community Development Director/Deputy Director had a conversation with the owner of the property at 3718 Central Avenue NE. The Fire Department has indicated that this property requires that certain improvements have to be made or the property cannot be licensed as a rental Property. The property owners indicated that they do not wish to finance the improvements and are eager to sell the property. The Community Development Assistant has conversed with the property owner about purchasing this property in the spring or early summer. This property is currently occupied by two individuals who the property owner has indicated are students and do not pay rent, rather they pay for the utility expenses and upkeep of the property. ANALYSIS: We have attached a copy of a letter from Dan Wilson, Principal, of Wilson Development Services. This letter is a written proposal to provide all relocation services necessary to comply with the Federal Uniform Relocation Act for a fee not to exceed $750.00. This relocation work will allow the staff and EDA to determine the amount of financial exposure should acquisition of this parcel proceed. RECOMMENDATION: Staff is recommending that the EDA authorize Wilson Development Services to proceed with the relocation work necessary to acquire the property at 3718 Central Avenue NE. RECOMMENDED MOTION: Move to award the proposal to provide relocation services at 3718 Central Avenue N.E. for a fee not to exceed $750.00 to Wilson Development Services; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Attachment: August 30, 2000 Proposal Letter EDA ACTION: \consent\Wilson Development Services 0S/~0/2000~ 12:~S 6124484676 WILSON DEVELOP SERV P~GE 81 WILSON DEVELOPMENT SERVICES ~HELPlNG CITIES AND BUSINESSES GROW" August 30, 2000 Randy Schumacher City of'Columbia Heights 59O 40a' Avenue, NE ' Coimnbia Heishts, MN 55421387S RE: Relocation Proposal ', 3 718 Central Avenue Residential Tenant Per our telephone conversations regarding the above, it is my understanding that the property is occupied by two (2) individuals, who are possibly student~ and who are paying little or no r-,rat. We propose to provide the n '.eceasmy relocation consultant services to complete their displacemem and relocation ~rom the subject property in compliance with The Uniform Rdocation Act.' The cost of our services would be at the following time and material rate schedule, with a not to excg~ amount of $750.00: Associate: $65;00 Principal: $75.00 8ecreta~: r,40.O0 l~eage: $ 0.35/mile The nmximum not to exceed, amount applies only to a displacement where the displacee speaks English and has no felony convictions or unlawful detainers against them. We are available to proceed a~ your &rection. Thank you for the opportunity to submit this proposal. Daniel H. Wilson Principal 510 Chestnut Street, Suite 200 - Chaaka, MN 55318 Office: (952) 448-4630 · Fax: (952) 448-4676 Email: wilsondev~earthllnk,net