Loading...
HomeMy WebLinkAboutEDA MIN 06-18-02COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY 0gDA) REGULAR MEETING MINUTES OF JUNE 18, 2002 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimann at 6:34 p.m., Tuesday, June 18, 2002, in the City Hall, Conference Room 1,590 40th Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: S t aff Pres ent: Robert Ruettimann, Patricia Jindra, Marlaine Szurek, Gary Peterson, Julienne Wyckoff, and Bruce Nawrocki Bobby Williams Walt Fehst, Executive Director Bob Streetar, Deputy Executive Director Randy Schumacher, Community Development Assistant Cheryl Bakken, Secretary Mark Nagel, Housing Assistant CONSENT AGENDA Approval of Minutes Move to adopt the minutes of the May 20, 2002, regular meeting as presented in writing. Financial Report and Payment of Bills Move to approve Resolution 2002-09, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for May, 2002 and approving payment of bills for May, 2002. MOTION by Nawrocki, second by Jindra, to adopt the consent agenda items as listed amending the minutes as follows: Page 3, Industrial Center Request for Qualifications, paragraph three, should read: Nawrocki questioned if Awsumb has Industrial Development experience. He also questioned if Welsh Companies should not be considered because of the way he treated the business owners of the 49tb and Central (Hilltop) strip mall unfairly. Page 4, Kmart Update should read: Fehst indicated he recently spoke with Gerry Herringer. McComb recommended 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 by Herringer. All ayes. Motion Carried. ITEMS FOR CONSIDERATION REQUEST FOR QUALIFICATION INTERVIEWS Streetar indicated there is a total of seven developers will give a 20-minute presentation by each, followed by a lO-minute question period at the end. Economic Development Authority Meeting Minutes June 18, 2002 Page 2 of 5 UNITED PROPERTIES United was represented by Dale Glowa, Senior Vice President, along with Todd Hanson, Vice President and Jason Sell, Associate. Glowa indicated United Properties is one o.f the oldest, .full service real estate companies in the area owned by the Pohlad.family. In the last year they have developed over $50 million in real estate, have approximately 450 employees made up of: 0 a real estate developers; 2) a brokerage division; 3) a property management team; 4) a construction division; 5) a corporate real estate services division; and 6) an investment group. United specializes in office, industrial, research and development, health care, retail, multi- .family, and business park developments. They have developed and acquired land, dealt with land environmental problems, and easement issues for many years. They are a.ffiliated with Oncor International, a group with real estate companies throughout the world. Glowa stated the first step to their approach would be to develop the plan. They would bring their development team in to work with the City. Hanson stated the second step wouM be a marketing step. They would look for land available, communicate with businesses, look at relocating businesses, and use their experience, resources and capabilities to market the redevelopment area. Welsh Companies Bob Long, Development/Brokerage Services for Welsh Companies stated they would work closely with Columbia Heights to develop a project to meet the needs of not only the Board, but the residents of the community. Long presented a two step approach to the redevelopment process: 1) identify what are the highest and best uses for the development area; and 2) acquire and development of the land. Dennis Doyle, Chief Executive Officer stated Welsh Companies has been in business for 24 years, is a 125 million dollar corporation specializing in working with intercity and first string suburbs. Dan Blomquist, Sr Vice President of their development team indicated they handle the legal and financial part of Welsh developments. They have developed 4.5 million square feet over the years and currently, are working on developments totaling $55 million. The architect firm o.f Genesis will work with them to develop a plan. Blomquist indicated they have worked with Genesis on a Phase 4project involving a 30-acre site in Arden Hills and another Phase 4project in St. Louis, Missouri involving a 724, 000 square foot development. Welsh uses Wells Fargo and Premier Financial companies. Lynn Sloat, Vice President of Genesis Architect firm, explained that 50% of their time is spent working with the development group and 50% working with outside developers to come up with a Comprehensive Plan. Sloat indicated.for the Crossroads o.fRoseville project, they acquired property, did environmental testing and developed the plan. Bill Krake, President of Welsh Construction explained he works with a team to make sure the projects can be accomplished. Krake gave the example of Vicksburg Village in Plymouth, and a 200 unit, apartment complex called Avalon at Edinburgh in Brooklyn Park. Economic Development Authority Meeting Minutes June 18, 2002 Page 3 of 5 Nawrocki asked what Welsh's involving was in the 49th and Central development. Long indicated they were hired to do property management on the site. INDUSTRIAL EQUITIES John Allen, Managing Partner for Industrial Equities, LLP expressed his interest in the large industrial project. He indicated he has a portfolio of 3, 000, 000 square feet, including the cities of New Brighton, Crystal and Roseville, is well established with Wells Fargo Bank and for long- term financing uses Teacher Insurance and New York lnsurance Companies. He has a good working relationship with both City and State agencies, owns all of the properties he has redeveloped, worked with environmental issues on land, has eight employees, owns property in aH of the cities surrounding Columbia Heights and has local market knowledge. There would be three documents required for the redevelopment area: 1) a development agreement; 2) a minimum assessment agreement; and 3) an equity contribution for land. Allen felt Columbia Heights is a first string suburb with great opportunities for redevelopment. Wyckoff asked if Industrial Equities wouM work with businesses to relocate them. Allen explained he would gladly rent to any of the businesses, but would not work on relocating them. The City would need to float TIF Bonds to acquire properties then sell the land to him for redevelopment. SCHAFER-RICHARDSON INC. Kit Richardson, Principal of Schafer-Richardson Inc. and George Sherman, Sherman Associates, Inc. gave the presentation. Richardson indicated they are a commercial real estate project company and have been in business for 28 years. They partnership with Sherman Associates, Inc., to develop, renovate, syndicate construction, lease, property management, marketing, business relocation and design. Richardson listed some of the projects they were involved in: 1) land and brown fills in the downtown area; 2) senior projects; 3) the old banks building; 4) the old Holman project and they currently, own the old Honeywell site. Sherman stated, they use the firm of Elness Swenson Graham Architecture, which is located in 25 states, with 75people on staff. Elness works 70percent on housing and 30percent on commercial redevelopment projects. They work with principal goals of high quality, public openspace, high streetscape, urban landscaping, and mixed-use developments. Examples of their work are the Richfield Urban Village, Excelsior and Grand, Brooklyn Park, Little Canada, Burnsville and the townhome and senior building between 41st and 42nd and Central in Columbia Heights for Real Estate Equities. Nawrocki questioned why Sherman was working with Schafer-Richardson, as it would seem they would be competitors. Richardson explained the two companies actually complement each other and they would be signing into the project with the City as a joint venture. Streetar asked if the project takes three to five years to develop, are they willing to stay with the project. Richardson stated they are very interested in the Columbia Heights project. Economic Development Authority Meeting Minutes June 18, 2002 Page 4 of 5 AWSUMB AND ASSOCIATES, INC. Gordon Awsumb, President, along with Harland Jacobs, President of Genesis Business Centers, Inc., Mike Kraft, Architect for Shea, Inc., gave the presentation. Awsumb indicated they have developed the Holland Townhomes in northeast Minneapolis, the Columbia Heights Business Center, BMC Industrial in St. Paul, Mankato Place, and the Robbinsdale Shops. Harlan recommended developing another Business Center in Columbia Heights just like the one at 39th and Central to prevent high tech businesses from moving out of Columbia Heights due to their growth in business. Kraft indicated Shea, Inc. has been in business for approximately 25years and that they focus on municipal and redevelopment planning. Kraft gave examples of their work: 1) Robbinsdale City Center; 2) Whittier in South Minneapolis; 3) Grain Belt Landing; 4) Milwaukee Road Depot; 5) City of Centerville; 6) Grand Marais Development; and 7) Seward Place in Minneapolis. Awsumb indicated they would focus on housing on the park with industrial sites around it. He also stated they would be willing to consider options for financing the project if they were chosen to develop the plan. KLODT INCORPORATED Paul Klodt, President of Klodt Incorporated indicated they have been in business for approximately 40years, tore down over 100 buildings, most of their projects were in the downtown area, developed close to 400,000 square feet of commercial and industrial projects and over 400 apartment units. They hire outside architects for the hotels and building development projects. The firm is financially backed by, Heitman Financial Corporation. Klodt presented a drawing of a proposed plan for the industrial center including townhomes, apartments, and some industrial. He recommended using 1.8 million in TIF bonds at 5percent for a 20-year period of time. Schumacher asked how much he would pay for the land on the industrial area project and do they have any experience with DTED or any other clean up procedures. Klodt stated he could pay approximately 5 million for everything and that he has some experience with the clean up process of contaminated land. BANCOR GROUP, INC. Paul Robinson, Development Manager for Bancor Group Inc. and Peter Pflaum, President and CEO of Plum Investment gave the presentation. Robinson indicated the Bancor Group was started in 1994 and is made up of management partners of Bancor, Plum Investment and VKO Enterprises, which provides, financial support and expertise. Projects consist of single-family developments and blighted or abandon property. Robinson gave an example of their latest project at the old Bailey Nursey in Woodbury where they converted it to townhomes with an arboritium at the entrance. Pflaum indicated he started Lunden Brothers Construction in 1970, which was the largest private construction business in the metro area producing townhomes, condos, and single-family Economic Development Authority Meeting Minutes June 18, 2002 Page 5 of 5 homes until two years ago when he started Plum Investment. His background is mainly in residential projects predominately in the western suburbs. Following the presentations, the Boardmembers discussed the seven candidates. Schumacher reminded the Boardmembers to pick a firm that will help us determine what to build on the industrial site, not the firm that will build what you think should be on the site, which will be determined when a plan is developed and RFP's are sent out. Nawrocki felt John Allen talked at our level, had a good approach, liked the fact that he owns all of his properties, would build a quality building, and has developed expertise in his business. Wyckoff felt Allen should be partnered up with Awsumb & Associates, but felt United was the firm to do the plan. MOTION by Ruettimann, second by Szurek, to recommend to the Columbia Heights City Council the selection of United Properties as the preferred development team for master planning, and determining the highest and best use for all properties in the industrial project area. In addition, authorize staff to develop a letter of understanding setting forth the scope of work, timelines and division of costs for City Council consideration. Upon vote: Jindra- Aye, Peterson- Aye, Nawrocki- Nay, Szurek- Aye, Wyckoff- Aye, Ruettimann- Aye. Motion Carried. Ruettimann directed staff to send out a letter to the other candidates indicating the EDA Board had chosen United to do the master plan and that all development companies interviewed would be considered for future RFP's after the plan is developed. JOURNMENT President, Ruettimann, adjourned the meeting at 11:15 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:\EDAminutes2002\6-18-2002