HomeMy WebLinkAboutEDA MIN 04-16-02COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
REGULAR MEETING MINUTES OF APRIL 16, 2002
CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development
Authority (EDA) was called to order by Vice President, Patricia $indra at 7:35 p.m., Tuesday,
April 16, 2002, in the Parkview Villa, Conference Room A, 965 40th Avenue NE, Columbia
Heights, Minnesota.
ROLL CALL
Commission Members Present:
Commission Members Absent:
Staff Present:
Patricia Jindra, Marlaine Szurek, Gary Peterson, Julienne
Wyckoff, Bruce Nawrocki, and Bobby Williams
Robert Ruettimann
Walt Fehst, Executive Director
Randy Schumacher, Acting Deputy Executive Director
Cheryl Bakken, Secretary
Mark Nagel, Housing Assistant
CONSENT AGENDA
Approval of Minutes
Move to adopt the minutes of the March, 2002, regular meeting as presented in writing.
Financial Report and Payment of Bills
Move to approve Resolution 2002-07, Resolution of the Columbia Heights Economic
Development Authority (EDA) approving the financial statements for March, 2002 and
approving payment of bills for March, 2002.
MOTION by Nawrocki, second by Williams, to adopt the consent agenda items as listed. All
ayes. Motion Carried.
ITEMS FOR CONSIDERATION
Presentation by Dunbar Corporation
Fehst indicated a month ago he and staff went on a tour with Dunbar Corporation to see some of
their developments in the Cities of New Brighton and Robbinsdale were they built multi use
buildings housing City offices, such as City Hall and the Library, commercial space with market
rate senior housing on the upper floors. Stajf went to explore the idea as an option for the
Burger King/Mady's site on Central Avenue. He then, introduced Frank Dunbar with the
Dunbar Corporation.
Dunbar explained a little about the company and what they do. He works as a project
coordinator for City EDA and HRA staff and their financial organizers on developments. There
are three benefits of a City owned development, 1) Non-profit; 2) you don 't pay taxes; and 3)
access to financial markets. Dunbar passed around some pictures of developments in Waconia
and other cities that are currently underway or have been completed. Dunbar stated they work
in a manor to meet the target date, collect ideas from the City, look into different bonds that
could be used for funding, and then moves forward on the development. They work on a contract
basis and would require monthly payments for their services, which is deductible at the closing
of the development from the overall 3% of the project contract. Any market research, attorney's
fees, etc., the City would incur, would be reimbursed at 100%. Dunbar indicated the City's
Economic Development Authority Meeting Minutes
April 16, 2002
Page 2 of 5
financial advisor, Ehlers & Associates can provide a study of the profit base that could be
acquired from the rental units located above City offices.
Wyckoff expressed her interest in attracting housing facilities for the Medtronic employees.
Dunbar indicated they developed a project called "Workforce Housing", for another City, which
ended up being housed by seniors anyway.
Fehst indicated at this time, the Board wouldn't need to approve a motion to get the exploratory
stages started with Dunbar Corporation, but, could direct staff to work with them and Ehlers to
review options available for the project.
Peterson indicated he was very impressed with the work done by Dunbar after seeing the New
Brighton and Robbinsdale improvement projects. Williams felt we should hold off on the City
Hall and Library facilities, as there are many other areas of the City that need redevelopment.
Nawrocki stated the Board needs to make a determination of what they want, a City Hall,
Library, Senior or for profit apartments, etc. for Dunbar and staff to explore.
Dunbar indicated they have worked with McComb in the past and are willing to work with them
on the recent study they developed for Columbia Heights.
Jindra directed staff to work with Dunbar on the exploratory stages of the development.
Adopt Resolution 2002-04, Approving and Ratifying the Termq of an Interfund Loan
Policy and Approvine the Interfund Loan Implementation Memorandum in Connection
with Housing Redevelopment TIF District No. 1 (P3)
Nagel indicated at the December 17, 2001 EDA meeting, Resolution 2001-20 was adopted,
modifying the Downtown Central Business District (CBD) Revitalization -Plan and adopting a
modification to TIF District No. 1, the scattered site district. Shelley Eldridge, Ehlers &
Associates prepared the documents to establish the Inter. fund Loan and Memorandum. The
principal of $268, 000 assumes no interest rate including $81,000, already spent in the district,
leaving $187,000 to purchase blighted properties in the City. The $81,000 repayment includes:
$34, O00 for 3855 Main Street acquisition; $17, 500for 4401 Quincy Street acquisition; and
$29,500for 3913 Polk Street acquisition and demolition.
Schumacher stated the scattered site housing project is to acquire single-family homes, remove
them, replace them and capture the tax dollars in the community.
Nawrocki indicated he was against using Parkview Villa South funds to payback the Interfund
Loan and why not use Liquor funds. Peterson indicated the Liquor funds should be spent on
remodeling the University Avenue store.
Motion by Nawrocki, to change the Resolution and Interfund Loan Memorandum to have the
funding come fi.om the Liquor Store funds instead of Parkview Villa South revenue funds.
Motion failed for lack of a second.
Motion by Peterson, second by Williams, to waive the reading of Resolution 2002-04, there
being an ample amount of copies available to the public. All ayes. Motion Carried.
Economic Development Authority Meeting Minutes
April 16, 2002
Page 3 of 5
Motion by Peterson, second by Williams, to Adopt Resolution 2002-04, a Resolution Approving
and Ratifying the terms of an Interfund Loan Policy and Memorandum in connection with
Housing Redevelopment TIF District No. 1 (P3); and furthermore, to authorize the President and
Executive Director to enter into an agreement for the same.
Upon Vote: Peterson- Aye, Nawrocki- Nay, Szurek- Aye, Williams- Aye, Wyckoff- Aye.
Motion Carried.
Approve Business Revolving Loan Fund Revisions
Nagel stated at the October ! 7, 2001 EDA meeting, a committee of Bob Ruettimann, Julienne
Wyckoff, Err Bednard and himself was set up to review and update the BRLF materials. The
committee met on April o°a and made the revisions to the Plan, Bylaws, Participation Agreement,
Guidelines and Loan Application forms. At this time, according to the Bylaws, the EDA Board
needs to appoint two more committee members and then a meeting will be held with the Finance
Department to establish an exact amount in the BRLF account.
Nawrocki felt the members of the Board should be residents of Columbia Heights only, not
business owners. Peterson indicated we have always had business owners and residents on all
of the commissions or committees.
Fehst stated advertisement for committee members, will be done through the Deputy City Clerk
and recommendations from Boardmembers.
Motion by Williams, second by Szurek, to approve the revised BRLF Bylaws, Plan,
Participation Agreement, Guidelines and Loan Application forms and direct staff to implement.
Amended Motion by Nawrocki, second by Wyckoff, to change the Bylaws, Section 4, Members
of the Committee, the second sentence should read: Three at large members to be appointed who
have financial expertise and are residents in the City of Columbia Heights. Upon Vote:
Peterson- Nay, Nawrocki- Aye, Szurek- Nay, Williams- Nay, Wyckoff- Aye. Motion failed.
Upon Vote ofthe Original Motion: Peterson- Aye, Nawrocki- Aye, Szurek- Aye, Williams-
Aye, Wyckoff- Aye. All ayes. Motion Carried.
ADMINISTRATIVE REPORTS
Report of the Acting Deputy Executive Director
Sullivan Lake Settlement Agreement
Schumacher indicated last fall, the City was notified, by the State Auditor that we received too
much money for the district. The EDA voted to deny the allegations; therefore, the City will be
going to court to determine a settlement amount sometime in the next month or so..
Status of 322 & 325 Summit Avenue
Schumacher stated the property at 325 Summit has been purchased for $144,000 and staff is in
the negotiation stages with the property oWner of 322 Summit Avenue. A business owner
contacted staff'after we purchased 325 Summit, with concerns if the City we closes off the 40th
Avenue access, it would create problems for his business. Community Development stajf and
engineering will meet with the owner to look over options for the alley access.
Economic Development Authority Meeting Minutes
April 16, 2002
Page 4 of 5
Cost Benefit Analysis for 40th & University
Schumacher indicated of the five properties identified in the Industrial Center Redevelopment
area, staff has purchased four, using $365,000 of CDBG funding.
Tax Base for Industrial Park
Schumacher passed out spreadsheets listing the current taxes being paid in the industrial area.
He indicated they should be 6-8% of the tax base. In review of the taxes, it is clear the Columbia
Heights Industrial Area businesses aren 't paying enough.
Nawrocki asked Schumacher to check into the tax figures for the Schaefer Richardson Property
listed on the second page of the spreadsheet, as it looked a little off. Schumacher will make the
necessary corrections. ..
Kmart Update
Schumacher has been talking to Jerry Herringer weekly. Herringer owns 65% of the Kmart
property. He is very willing to talk to the City, but has no deftnite plans at this time. The
Bankruptcy hearing was hem on March 20a. Fehst indicated he also, has been talking to
Herringer and felt the property will probably be a mixed-use area.
325-40a Avenue MGS
Schumacher indicated the property owner for MGS Company at 325 40ts Avenue contacted staff
to express their interest in relocating their business into an 8, 000 sq. ft. building in Columbia
Heights. Schumacher indicated he is having problems locating a site to relocate the business to
and will keep working on it.
RFQ's Mailed Out & Advertised
Schumacher stated the RFQ's were mailed out last week to a list of 20 developers and will be
published in the Real Estate Journal on April 29a, 2002. The packets are due on May 14ta by
4:00p. m.
Lomianki Park Update
Schumacher indicated Tim Johnson, City Planner, prepared the memo in the packet for the
Board as an update. Johnson states an Open House was held on March 26, 2002 with
approximately 25 residents with several City Council and Planning Commission members
present. Schumacher explained the Park and Recreation Commission will meet on April 24th,
and the Planning Commission will meet on May 7th to discuss and provide recommendation
whether or not to continue recognizing this area as part of £omianki Park prior to the item going
to the City Council meeting sometime in May.
Nawrocki asked if the documentation has been found stating if'the land has to remain as a
dedicated park. Schumacher indicated the documents have been found, and Johnson will be
presenting aH the information at the Park and Recreation Commission meeting on April 24ta.
Memo on 51't Court Plans
Schurnacher indicated in the memo from Tim Johnson, City Planner, it states the properties
located at 5045, 5065 and 5075 51~t Court (behind White Castle and La Casita) are being
considered for possible residential developments, even though the property is zoned General
Economic Development Authority Meeting Minutes
April 16, 2002
Page 5 of 5
Business. If the townhome project goes through, the land would have to be rezoned. In March,
the EDA Board requested staff find the documentation of past developments on the site that never
were finalized. Staff found documentation from 1990for a two-story office building and a
Baymont Hotel concept from the winter of 2OOO for the property at 5065 51st Court. Staff
continues to receive inquiries regarding the properties from interested commercial and
residential parties.
Williams asked what the taxes are on the vacant properties. Schumacher stated he would
provide this information to the Board at a future meeting.
Williams and Wyckoff expressed their interest in restaurants or a hotel being placed on the site
instead of townhomes. The townhome idea was more appealing to the remaining members of the
Board.
Report of the Executive Director
St. Timoth¥'s Townhome Pro|ect Update
Fehst indicated BruceNedegaard contacted him to say that St. Timothy's voted 3 to 1 in favor of
the townhome project on the church property and would be contacting the City for permits.
OTHER REPORTS (Information Only- No Discussion)
Housing Update
Resident Council Minutes
ADJOURNMENT
Vice President, Jindra, adjourned the meeting at 9:26 p.m.
Respectfully submitted,
Cheryl Bakkefi
Recording Secretary
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