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HomeMy WebLinkAboutEDA MIN 05-20-02COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OF MAY 20, 2002 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimann at 5:46 p.m., Monday, May 20, 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 CONSENT AGENDA Approval of Minutes Move to adopt the minutes of the April, 2002, regular meeting as presented in writing. Financial Report and Payment of Bills Move to approve Resolution 2002-08, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for April, 2002 and approving payment of bills for April, 2002. MOTION by Peterson, second by Szurek, to adopt the consent agenda items as listed. All ayes. Motion Carried. Nawrocki felt that the meeting was called to start at 5:45p. m. without considering the 15 minute time difference that would have allowed him to be present at the start of the meeting. Ruettiman informed the Board that Bill Elrite, Finance Director, was not able to present the Fund Balance Review this month due to the Annual Audit, but will have the information available by the June meeting. ITEMS FOR CONSIDERATION Sullivan Lake Settlement Agreement Schumacher indicated the EDA created the Sullivan Lake Tax Increment Financing District, approved the financing plan on June 15, 1987 and received Tax Increment payments for the property taxes payable in 1997 in the amounts of $48,120.66 on July 7, 1997, $47,864.33 on December 2, 1997 and $1,678.46 on January 26, 1998. The State Auditor conducted an examination and audit of the District and issued a letter of non-compliance dated January 26, 2001, alleging the EDA 's receipt of $97,663.45 in Tax Increment Payments after July 15, 1997, violated the statutory duration limits for an Economic Development District and is subject to repayment. The EDA responded to the State Auditors notice denying the EDA improperly Economic Development Authority Meeting Minutes May 20, 2002 Page 2 of 4 received $97,663.45. Anoka County brought an action against the EDA in the Anoka County District Court, siting the State Auditors findings and seeking repayment of the Tax Increment payments. Under Minnesota Statutes, the Court may abate all or part of any amount payable by the authority, if the action was taken in good faith and the payment would work an undue hardship on the municipality. The parties recognized the EDA relied in good faith on the counties distribution of Tax Increments from the Sullivan Lake District, and that the EDA has expended such distributions, under the assumption they were properly made. Anoka County wants to resolve the dispute to avoid the cost and delays associated with litigation. Therefore, staff recommended EDA approval of the settlement agreement, authorizing a payment in the amount of $1, 678.46 to the County as a full, final and complete settlement, and this payment is made as a compromise of the disputed claim asserted against the EDA, and is not intended as an admission of wrong doing by the EDA. Szurek asked if the State Auditor wanted the total $97,663.45. Fehst stated the letter received in the fall of last year did indicate that. Wyckoff asked who owns the district and will it be a dead district after this. Schumacher indicated that Rottlund owns the property and it will be a dead district. MOTION by Szurek, second by Jindra, to Approve the attached Settlement Agreement for Sullivan Lake Tax Increment Financing District; and furthermore, to authorize the President and Executive Director to sign the agreement and make the required payment to Anoka County. All ayes. Motion Carried. ADMINISTRATIVE REPORTS 2001 Audit Review Schumacher reported the Auditors report for Parkview Villa states that we have satisfied the following issues in the past year: 1)following the NSF policy consistent with the City; 2) the new software was implemented to provide the City with better financial information on billing and collecting rents; 3) new procedures were implemented for the coin operated laundry facilities; 4) a written agreement was signed between the EDA and the Hair Salon Beautician and a the proper licensing acquired; and 5) a Capital Replacement Plan was developed to identify financial needs. Ruettimann suggested the Auditors be made aware that the Audit for Parkview Villa should be addressed under the HRA in the future, as the administration of it was changed to the HRA in January of 2001 and also requested that Jindra and him receive a copy of the Audit. Schumacher will make sure the Finance Department addresses this issue for next year and staff will provide the copies of the audit to Ruettimann and Jindra. For the CDBG Program- The last three grants need to be finalized, which we processed the end of April. For CIAP- The Davis Bacon issue with Millar Elevator from 1999 needs to be finalized, which the EDA Board passed the final payment last month and a check has been issued to Millar. Economic Development Authority Meeting Minutes May 20, 2002 Page 3 of 4 Schumacher indicated that staff should be commended for their efforts in resolving these issues. The Board extended their thanks to the Community Development Department staff Industrial Center Request for Qualifications Schumacher stated staff has received three RFQ's by the May 14ta deadline from Welsh, United, and C.B. Richardson. John Allen and Awsumb and Associates, would still like to submit their RFQ 's, if the Board would be open to accepting them. Staff will review the RFQ's prior to the EDA interviews being held. Each interview will be approximately 45 minutes in length. Ruettimann indicated, his experience with developers was that if they couldn't make the forty- five day lead time for bidding, they will most likely be late on the project. Nawrocki questioned if Awsumb has Industrial Development experience and maybe should not be considered because of the way he treated the business owners of the 49ta and Central (Hilltop) strip mall unfairly. Peterson felt we should not exclude anyone at this point in the redevelopment process. Szurek suggested calling all of the remaining twenty developers that were sent RFQ's to let them know we are going to conduct interviews and verify if they are still interested in submitting their RFQ. Ruettimann requested staff contact all of the developers to find out their interest in submitting their RFQ and extend the deadline to Monday, June IOta at 4p.m. Schumacher will coordinate this process. Rehab Incentive Program $chumacher indicated Columbia Heights has been approved for $50,000 in Rehab Incentive Program that the Resource Center has applied for. The Incentive Program will encourage Columbia Heights residents to fix up their home, as they will receive a 15% rebate if their income is up to $38,350; 12% rebate if their income is from $38,351 thru $54,400; and a 10% rebate is their income is between $54,401 and $88,205. The funds are on a first come, first serve basis and will be available sometime in July. LCDA Grant Application $chumacher indicated staff has applied for a Pure Planning Grant to be used for the Mady's area of Central Avenue in the amount of $25, 000, which the City Council has reviewed and approved for submittal. Staff will know by July 25tn if we will receive the funding. Economic Development Authority Meeting Minutes May 20, 2002 Page 4 of 4 Kmart Update Fehst indicated he recently spoke with Gerry Herringer. McComb recommend Herringer look at the whole eleven plus acres and what can be done with it. The letter enclosed in the EDA packet outlines the steps to be taken in the next two months steps by Herringer. Mady's Block Redevelopment - Dunbar Proposal Schumacher indicated he and Fehst met with Frank Dunbar last week on the possible development in the Mady 's, Burger King, Rental Center block area. Maxfield Research Inc. is working with Dunbar to provide information necessary for the development. They are recommending 17,080 sq fi of commercial development on Central, which includes 24, 000 sq fi on the 39th street side for public use (City Hall or library possibly), a large parking area in the rear, possibly leaving Mady's Bowling Alley in the same spot, but upgrade the building, and 60 to 80 units of senior housing. The priority rating for admission to the market rate rental units could be: 1) Columbia Heights residents first; 2) Columbia Heights families; and 3) residents that use to live in Columbia Heights, and wouM like to live here again. Wyckoff felt the rental units shouM not be just for seniors, they should be open to any age group. Peterson requested staff check with Dunbar on the possibilities of opening the rental units to all age groups. Walt indicated there is a parking requirement that would have to be met if the units are opened to all age groups. St. Timothv's Town-homes $chumacher stated Nedegaard has a purchase agreement with St. Tim's and will be coming up with a preliminary and a final plat for the P & Z and City Council review sometime in July. Resident, Mrs. Johnson, indicated she was at a meeting that was held between residents and Nedegaard, and reported that it went very well. OTHER BUSINESS Ruettimann indicated Pat Jindra was interested in being on the HRA Board and asked if any Board member would be interested in stepping down to allow her to fill the position. Wyckoff was very interested.. ADJOURNMENT President, Ruettimann, adjourned the meeting at 7:12 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:\EDAminutes2002\5-20-2002