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HomeMy WebLinkAboutEDA MIN 05-20-03COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY 0gDA) REGULAR MEETING MINUTES OF MAY 20, 2003 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President,. Don Mm)m, Jr. at 6:35 p.m., Tuesday, May 20, 2003, in the City Hall, Conference Room l, 590 40th Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: StaffPresent: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg Walt Fehst, Executive Director Bob Streetar,' Deputy Executive Director Randy Schumacher, Community Development Assistant Cheryl Bakken, Community Development Secretary CONSENT AGENDA Aooroval of Minutes Move to adopt the minutes of the March, 2003, regular meeting as presented in writing. Financial Report and Payment of Bills Move to approve Resolution 2003-07, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for the months of March and April, 2003 and approving payment of bills for March and April, 2003. MOTION by Wyckoff, second by Jindra, to adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION Preliminary Development Anreement with Haugland Real Estate Company Schumacher stated the proposed Preliminary Development.4greement will grant the developer 120 days to secure options for the site at 40th and University. SChumacher then introduced Gene Haugland, President, and Paul Reinke, Senior Director of Haugland Real Estate Company and Mike Kraft of HTG .4rchitect& Haugland stated he worked with the Opus Corporation prior to starting Haugland Real Estate Company in1996, and has purchased and developed the following projects: 1) In Edina- Interlachen Corporate Center, Londonderry Shops, and Edina Medical Center; 2) In Oakdale- Western Bank and Oakdale Tech Center; 3) In Shakopee- Shakopee Distribution Center; and 4) In Crosslake- Pine View Townhomes (senior housing). At 50th & France they purchased and renovated all of the buildings in the block area, including the old Edina Theatre. Reinke stated he has 20 years in commercial and the corporate real estate industry, expertise in project management, vendor negotiation and integration, estimating, management of the design, construction process, marketing and development and construction services. Economic Development Authority Meeting Minutes May 20, 2003 Page 2 of 4 Haugland went over the two development concepts they included in the packet; 0 7,500 sq. fi. of retail business such as a deli, coffee shop, salon or a dry cleaners; and 2) 4, 600 sq. ft. facility with a family orientated restaurant like Culvers. Nawrocki stated he believes in competitive bidding and asked what other firms were contacted. Streetar stated staff contacted Griffin, CHT, United Properties, Welsh, George Sherman, Nedegaard, Housing and Cornerstone Group, with none of them interested in the site. Nawrocki asked what funding has been used so far. Schumacher stated $535,000 of CDBG funds have been used other than administrative costs. Murzyn, Ericson and Williams all felt that Haugland's credentials were to their satisfaction. Williams asked if the 120-day time period would be realistic or not. Murzyn stated he felt it was sufficient. MOTION by Ericson, second by Wyckoff, to Approve the Preliminary Development Agreement with Haugland Real Estate Company for the redevelopment of the City owned property at 40th & University Avenue; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. ADMINISTRATIVE REPORTS INDUSTRIAL PARK Schumacher stated Mark Koegler of Hoisington Koegler will present the final draft of the Industrial Park Redevelopment Plan on Monday, June 2 at the City Council Worksession. The $50,000 grant application to the Department of Trade and Economic Development for the funding of a contamination investment and response action plan has been submitted. The first step required by the state prior to receiving the funding is soil correction. Staff has been working with two of the larger property owners in Phase 1 and H of the Preliminary Industrial Plan. Schaffer Richardson is inquiring about the possible acquisition of parcels adjacent to their property and another large property owner is willing to significantly assist in the implementation of the Redevelopment Plan. KMART Streetar stated the Kmart Advisory Group held meetings on May 1 and 15~ at Murzyn Hall. On May 10~ the Advisory Group toured redevelopment sites in Shoreview, New Brighton, Golden Valley, Richfield, Minneapolis, and St. Louis Park were each of the cities had been a partner investing time and money to make the project successful. At the City Council Worksession on Monday, June 2'ut, staff will update the City Council on the progress of the Kmart project, as well as get Council feedback and direction on the development goals and principles of the project. 40TM & UNIVERSITY Schumacher stated staff has received the letter of approval from ~4noka County to go forth with the purchase of the property at 522 40th (MGS) using CDBG funding. The owner of the property has been ready for a long time to sell and move to a much larger building as his business has grown considerably. Staff gave permission for MGS employees to use the Conoco station for parking. The gas station building will be coming down within the next two to three weeks. Economic Development Authority Meeting Minutes May 20, 2003 Page 3 of 4 3929 CALIFORNIA Schumacher stated site borings for the future industrial building at 3929 California Street has been completed and approved for building load standards. Mr. Stau. ffacher's architect will have building plans completed by June 1st with a projected start date of June 25th. COLLINS AUTOBODY Schumacher stated the property owners of Collins Autobody have contacted staff with interest in purchasing and developing the City owned, single-family home at 4833 University Avenue to expand their business. The City purchased the home for $75,900. Collins is proposing the following: 1) Pay S65,000 for the property as is; 2) Pay 52,500 down immediately and the balance in April of 2004; 3) has designed two alternative business expansions. One being 3, 725 sq. fl and the other 5,178 sq. fl.; 3) the plan would allow them to acquire the property.from the City this summer, remove the single-family home and prepare the site for construction; 4) the addition would begin by June of 2004, with the balance of the purchase price (562,000)paid to the City; and 5) if they do not carry through with the development plan by June of 2004, the property wouM revert to the City ownership, the down payment money and any funding expended by Collins on the removal of the building and site preparation wouM be lost. Schumacher asked for the Boards direction if they would like staff to go forth with a purchase agreement.. Williams suggested staff try to negotiate the full $75,900 price the City paid for the property. Murzyn and other boardmembers directed staff to work out an agreement. 1036 GOULD Streetar stated staff has been working with Anoka County and GMHC to assist the owner of the property to make the necessary improvements to the home in order for her to occupy it again. GMHC assisted the owner in receiving a $66,000 home improvement loan. Bakken indicated she has been working with Anoka County Social Services staff to identify the needs of the senior resident, has contacted a local Church for volunteers, which will be coordinating a day to help the owner with yard cleanup, minor interior repairs, cleaning up after the construction and organizing of items in the home. CENTRAL AVENUE DESIGN GUIDELINES COMMITTEE Streetar stated the Committee has finished the process of developing guidelines for Central Avenue, which are intended to apply to new construction, exterior changes, major remodeling, and additions to buildings, as well as renovation or rehab of existing buildings. The committee will be presenting the guideline plan to the Planning Commission for formal review and then to the City Council for final approval in the next month. METROPOLITAN COUNCIL/GMHC Streetar stated GMHC applied for and received $240, O00 for the acquisition, demolition, new construction; rehabilitation of l 3 for sale homes in Columbia Heights. The funds will be used for gap financing, the City's match would be $50,000 and to qualify for these homes, potential buyers must have a household income between $75,300 and $86,595. Economic Development Authority Meeting Minutes May 20, 2003 Page 4 of 4 BURGER KING Streetar stated the Nath Companies, which own Burger King have been working with staff to relocate their business in Columbia Heights with a $1.2 million dollar facility. The properties of the old Hardees, the Blue Car Wash and Jellies and Beans sites have been considered. The Jellies and Beans site is the most feasible site for the development. Nath is also proposing a commercial or residential development on the Ostlund property behind La Casita. Staff will meet with Nath on May 23r~ to discuss both proposals. Wyckoff stated the Ostland brothers, contacted her about their idea ora transmission shop on the site. Williams stated the owner of the Rental shop on Central contacted him in regards to relocating his business to the same location. Streetar stated either development would meet the zoning, but was concerned the rental shop would want to have their equipment located outside the building. This would not work with the proposed redevelopment area zoning. Fehst suggested staff contact the owner of the rental shop and work with him, which would also save the City money in relocation costs at the time the City purchases the rental building. $chumacher stated staff is still working with the owner of the old Bridgeman 's building to create a redevelopment project for the 37a & Centralproject area. Developer, Roman Roos, has teamed up with the owner to try and partnership the project. Staff should know by next week if this will work or not. Roman does four to five projects a year in the $4 to 5 million range. The other option for the site is a plan staff has been working on with the MCF Group. MCF has never done a project like this before and they have no performa. Staff will continue to work with them and keep open all options for the redevelopment project. Fehst commended $treetar and $chumacher for their hard work stirring up interest in the redevelopment of 40t~ and University. ADJOURNMENT President, Murzyn, adjourned the meeting at 8:06 p.m. Respectfully submitted, Community Development Secretary H:~EDAminutes2003~5-20-2003