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HomeMy WebLinkAboutEDA MIN 03-19-02COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OF MARCH 19, 2002 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President, Ruettimann at 6:36 p.m., Tuesday, March 19, 2002, in the City Hall, Conference Room 1,590 40th Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: Staff Present: Robert Ruettimann, Patricia Jindra, Marlaine Szurek, Gary Peterson, Julienne Wyckoff, Bruce Nawrocki, and Bobby Williams Walt Fehst, Executive Director Randy Schumacher, Acting Deputy Executive Director Cheryl Bakken, Secretary Mark Nagel, Housing Assistant ADDITIONS/DELETIONS TO MEETING AGENDA- Bakken passed out revised agenda items 4 and 5. CONSENT AGENDA Approval of Minutes Move to adopt the minutes of the February 19, 2002, regular meeting as presented in writing. Financial Report and Payment of Bills Move to approve Resolution 2002-06, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for February, 2002 and approving payment of bills for February, 2002. Nawrocki asked what the disbursements for Columbia Heights Housing and Jay Brothers were for. Schumacher stated the Columbia Heights Housing was the sixth and last payment on the Transition Block Townhome Project using Liveable Community Funding and Jay Brothers was for the demolition of 828 40~ Avenue, the oM IT/shop. MOTION by Peterson, second by Szurek, to adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION REQUEST FOR QUALIFICATIONS RELATING TO THE REDEVELOPMENT OF INDUSTRIAL ZONING PROPERTIES Schumacher indicated in February, the City Council and EDA approved a Request for Qualifications (RFQ) process for redevelopment of the industrial area east of University bounded by Jefferson Street, 37th Avenue, University Avenue, and 39~ Avenue/Lookout Place. The RFQ process is a faster and more streamlined approach than the RFP. The draft RFQ is a combination of several examples from metro area cities. After the EDA Board and City Council approve the document, it will be mailed out to interested developers. Economic Development Authority Meeting Minutes March 19, 2002 Page 2 of 6 Ruettimann asked if we would be requesting qualifications for the entire Industrial Area. Schumacher indicated it was very possible and is recommended. Nawrocki asked if it was staff's intent to find a developer that would rebuild the entire area, and is it anticipated that the developer will receive their compensation from the redevelopment, or would the City be responsible for a portion of the cost. Schumacher stated the first step is for the Board to find a developer 's proposal acceptable, and the next step in the process would be to determine the funding for the redevelopment. Wyckoff was concerned that the business and homeowners should be notified prior to sending out the RFQ. Fehst indicated other cities usually do not to send out notices for this step of the redevelopment process. Ruettimann asked if'the commercial redevelopment area along Central Avenue should also be sent out with the proposals. Schumacher explained the Industrial area is a very large portion of land and combining the two may be too much to attempt at one time. Once the RFQ 's are received, the Board can determine which area to work on ftrst, what developer, etc. After some discussion, the consensus of the Board was to extend the Industrial Development area to 40~ Avenue on the east side of University. Staff will make the change to the maps prior to mailing out the RFQ 's. MOTION by Peterson, second by Szurek, to recommend to the City Council approval of the RFQ document for the Columbia Heights Industrial Center Redevelopment Project amending the following: 1. Under 4.5 it should read: The City of Columbia Heights City Council will consider the Economic Development Authority's recommendation at their July 8, 2002 meeting. 2. Under 1. Project Context, should read: The City of Columbia Heights is initiating redevelopment of an industrial area generally bounded by 37~ Avenue on the south, Jackson Street on the east, 39~ Avenue and Lookout Place on the north and all Industrial and General Business areas to the west of University extending fi:om 37~ to 40~ Avenue (see Appendix A for map). The City of Columbia Heights is seeking qualifications fi:om interested development teams to assist the City in redeveloping the property described in Appendix A. 3. Under number 2.3 it should read: 56 Parcels- 2 City-owned, housing about 20 companies. All Ayes. Motion Carried. Williams asked if we have any idea what the tax base is currently or what we can expect if the area is redeveloped. Schumacher stated staff does have some ftgures available. Ruettimann requested staff provide the ftgures to the Board. ACTION STEPS FOR IMPLEMENTATION OF TI-rE MCCOMB STUDY Nagel stated that priority #7 of the 2002 Community Development Goals is to increase the City tax base, which includes a step to evaluate and implement recommendations from the McComb Study. The mission statement and six objectives with steps for implementation are listed in the packet. 'Economic Development Authority Meeting Minutes March 19, 2002 Page 3 of 6 Nawrocki asked what the Rainbow Project was. Fehst indicated Rainbow submitted plans for a gas station and strip mall to be constructed on their site last fall and due to employee changes, the project was put on hold. Schumacher indicated staff has approved the plans for the gas station, which should start in another month or so. Nawrocki was concerned that Kmart has a year lease on the building and wondered if the building would be left vacant for 6 months. He asked if staff has an idea of what the property owner plans to do with the building. Schumacher stated he has contacted the owners and they are not ready to address their intentions for the building at this time. MOTION by Peterson, second by Szurek, to approve the Implementation Plan for the McComb Group, Ltd. Downtown Market Study. All ayes. Motion Carried. BUSINESS REVOLVING LOAN DOCUMENTS Nagel indicated that in November of 2001, the EDA approved the formation ora three-member committee to review and revise the BRLF Loan documents. Staff has prepared a draft version of the Bylaws, Plan, Application, and Guidelines for the committee to review. Staff recommended setting a meeting of April 8, 2002for the Committee to meet, revise the documents, and submit them to the EDA at a future meeting for approval. Ruettimann requested staff send a copy of the revised documents to Err Bednard for review and comment and schedule a meeting of the committee for April 8, 2002 in the Community Development Blue Room at 4:00p. m. Nagel will confirm the meeting with the committee. MOTION by Peterson, second by Williams, to establish a meeting date of April 8, 2002, in the Community Development Department Blue Room at 4:00 p.m. for the BRLF Loan Review Committee to review, compare, and revise the guidelines, bylaws, plan and application and submit the final draf~ to the EDA Board at a future meeting for further consideration. All ayes. Motion Carried. APPLICATION C1998-08, CDBG HOUSING REHABILITATION PROGRAM Schumacher reported staff has been working with Dave King from CEE for the past six months to finalize the Rehabilitation Grants for 1998 and 99. Anoka County has made many extensions to the grant funding for the City and has given the last and ftnal extension date of April 1st. Staff requested an additional extension until the two final grants are completed sometime this spring, but in the letter from Anoka County addressing the issue it states they have been receiving a lot of pressure from the state in releasing the funds and could not promise reimbursement. Schumacher indicated that because the grants before the board are not complete, he asked for an amendment to the original motion for these two grants presented tonight to read as follows: Contingent upon Anoka County signing a Procedure to Work Authorization, and guaranteeing full funding of the project. Fehst stated he and staff have contacted various officials in the County for assistance. Ruettimann requested Schumacher and Fehst set up a meeting with Jim Kordiak and Paul McCarron to get a commitment on behalf of Anoka County. Schumacher indicated CEE has processed a CDBG Housing Rehabilitation Deferred Grant for the property at 4036 6th Street in the amount of $15,908 to Windows America, Roof Partners, and Economic Development Authority Meeting Minutes March 19, 2002 Page 4 of 6 Otogawa-Anschel for replacing windows, performing ceiling and roof repairs to the home. MOTION by Peterson, second by Williams, to approve the CDBG Housing Rehabilitation Deferred Grant/Loan Application for Grant #1998-08 in the mount of $15,908 for housing rehabilitation to Windows America, Roof Partners, and Otogawa-Anschel, and the Center for Energy and Environment subject to meeting all program requirements; and furthermore to direct staff to submit the loan application to Anoka County and to authorize all related expenses to be reimbursed from Fund 202-46350-4600/3050, contingent upon Anoka County signing a Procedure to Work Authorization, and guaranteeing full funding of the project. All ayes. Motion Carried. APPLICATION C1998-10, CDBG HOUSING REHABITATION PROGRAM Schumacher indicated CEE has processed a CDBG Housing Rehabilitation Deferred Grant for the property at 3752 2 ~ Street in the amount of $20,833 to Custom Home Remodeling for replacing the furnace, windows and frames, repair ceiling, install fascia, gutters, roof on the garage, and sidewalk and patio repairs that will be made to the property. MOTION by Peterson, second by Williams, to approve the CDBG Housing Rehabilitation Deferred Grant/Loan Application for Grant #1998-10, in the amount of $20,833 for housing rehabilitation to Custom Home Remodeling, and the Center for Energy and Environment subject to meeting all program requirements; and furthermore, to direct staffto submit the loan application to Anoka County and to authorize all related expenses to be reimbursed from Fund 202-463504600/3050, contingent upon Anoka County signing a Procedure to Work Authorization, and guaranteeing full funding of the project. All ayes. Motion Carried. ADMINISTRATIVE REPORTS REDEVELOPMENT PLAN FOR 40TM AND LOOKOUT PLACE Schumacher indicated the preliminary redevelopment proposal for the southeast corner of University and 40a Avenue in the packet is made up of. five parcels of property and a partial vacation of Lookout Place. The City owns the vacant lots on the west side of Lookout, and is in the process of purchasing the Conoco Station directly to the north. The single-family home at 325 Summit Street is vacant and will soon be put up for sale. Michael Sweat, the general business parcel at 322 4ffs Avenue, has indicated they would like to relocate to a larger building in Columbia Heights. The proposal has been discussed with the City Engineers. Schumacher pointed out the area on a map for discussion. Schumacher indicated funding wouM come from 1) the resale of the home on Summit Avenue; 2) the $35, O00 from Monroe property; 3) $30,000 approximately, left over from Central Avenue property purchases; and 4) CDBG funding. Nawrocla' recommended the property owners on Summit be advised of the City's intentions, due to more traffic being routed down Summit if40a and Lookout Place access is blocked off and he would like staff to submit a Cost Benefit Analysis of the project. Ruettimann stated the owners on Summit will be notified at the proper time, but didn't feel that they would experience anymore traffic on the block. He then directed staff prepare a Cost Benefit Analysis for the project. Economic Development Authority Meeting Minutes March 19, 2002 Page 5 of 6 MOTION by Ruettimann, second by Williams, to direct Schumacher to negotiate an agreement' with the two property owners on Summit Avenue on behalf of the City and for staff to prepare a Cost Benefit Analysis. All ayes. Motion Carried. LOMIANKI PARK UPDATE Schumacher indicated City Council has been involved in discussions regarding potential development of portions of I, omianki Park. Bruce Nedegaard approached City Council with a concept development plan for high-density townhomes. The plan included the entire portion of south £omianki Park, as well as a portion of land extending up 37th Avenue on the south. Nedegaard met with the owner of the small industrial business located at 82 38th Avenue, and the owner of the residential home at 3 702 Main Street, and is pursuing negotiations for both properties. The owner of the industrial property indicated he would like to sell the building and land. Staff outlined the steps necessary to develop the land and provided a copy of the appraisal for the north and south parcels. The first step for redevelopment is a public open house, which is scheduled for March 26ta at 7:00 p.m. in the Council Chambers, where Nedegaard will present the townhome concept plan for south £omianki Park. 3722 CENTRAL AVENUE UPDATE Schumacher reported the closing of IZera Johnson's property at 3 722 Central Avenue was delayed due to some family issues related to the signing of the deed, but felt confident the closing should be finalized within the next week. Johnson has taken an apartment in Parkview lZilla south. The property at 3718 Central Avenue (VonHeidemann 's), was acquired a couple of months ago. Staff has already discussed options with some developers interested in the two properties. ANNUAL REPORT Schumacher presented the Board with a copy of the Community Development Delaartment's Annual Report for 2001, which provided a description of the highlights that ° cc~rred, some data and documentation for informational purposes only. TOUR WITH DUNBAR DEVELOPMENT CORPORATION Fehst indicated he and the Community Development Department staff took a tour of Shakopee on March 5~ with Dunbar Corporation to see some of the facilities they have developed in the area. The purpose of the tour was to check out possibilities for the Mady's site on Central Avenue in Columbia Heights. The plan included three floors of senior housing above City offices, public space for the Library and possibly some room for the Police and Fire Department. He felt this was a concept that could work for Columbia Heights. Fehst received a development package from Dunbar that he directed staff to copy and distribute to the Board members for review and would like to see Dunbar's development concept placed on the April agenda for discussion. OTHER BUSINESS Nawrocki received a call from the Ostlund brothers that own the property behind grhite Castle on Central Avenue. They asked Nawrocki to get feedback from the EDA and City Council on the idea of building townhomes on the site. Ostlund indicated they have already talked to a couple of developers on the townhome idea. Peterson indicated he felt if anything was built on the site, access to the property would have to come from 52~d Avenue, which is Fridley owned. Economic Development Authority Meeting Minutes March 19, 2002 Page 6 of 6 Szurek and Wyckoff remembered a motel that submitted plans for the site approximately four years ago. It was going to be called the Baymont Hotel, but was never developed due to the lack of visibility. Ruettimann directed staff look up the plans and give copies to the Board. NawrocM will convey to the Ostlund brothers that the consensus of the Board was that townhomes or restaurants would be nice for the site. ADJOURNMENT President, Ruettimarm, adjourned the meeting at 9:06 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:\EDAminutes2002\3-19-2002