Loading...
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 H:\EDAminutes2002\4-16-2002