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HomeMy WebLinkAboutEDA MIN 03-18-03COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OF MARCH 18, 2003 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President, Don Murzyn, Jr. at 6:34 p.m., Tuesday, March 18, 2003, in the City Hall, Conference Room 1,590 40th Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: StaffPresent: Don Murzyn Jr., Patricia $indra, 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 Approval of Minutes Motion by Williams, second by .Iindra, to adopt the minutes of the March 18, 2003, regular meeting with the following amendment: Pa~e 3. Para~raoh 2 should read: Nawrocki stated he talked to the City Manager, Mayor and a couple of Council members from the City of Anoka, and felt that he agreed with the City of Anoka's position to oppose the creation of the Anoka County EDA. All ayes. Motion Carried. Financial Report and Payment of Bills MOTION by Williams, second by Jindra, to approve Resolution 2003-03, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for February, 2003 and approving payment of bills for February, 2003. All ayes. Motion Carried. ITEMS FOR CONSIDERATION Resolution 2003-04, Ratifying and Specifying terms of Inter-Fund Loans for the Scattered Site TIF District Streetar stated from 1998 and 2000funds from the EDA, HRA and Capital Projects totaling $76,105.20 was used for the acquisition and demolition of substandard single-family detached housing. Even though, the City Council approved the funding, no formal inter-fund loan agreement was executed. ,4t this time, the EDA is requesting to execute an inter-fund loan agreement, ratifying and specifying the terms of the inter-fund loan for the Scattered Site TIF District. Nawrocki asked what are the breakdown amounts that came out of the EDA, HRA and Capital Projects and why isn't it documented in the resolution. Streetar stated the fund amount from the Economic Development Authority Meeting Minutes March 18, 2003 Page 2 of 4 EDA was $17,500, HIM was $24,000 and Capital Projects was $34,605.20 and confirmed that staff can include these figures in the Resolution that goes before the City Council. MOTION by Williams, second by Kelzenberg, to Adopt Resolution 2003-04, a Resolution Ratifying and Specifying terms of the Inter-Fund Loans for the Scattered Site TIF District; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Resolution 2003-05, Ratifying and Soecifvin~ terms of Inter-Fund Loans for the Sheffield TIF District Streetar stated Resolution 2003-05, Ratifies and Specifies the terms of the Inter-Fund Loans for the Sheffield TIF District totaling $640,174, the interest rate of 5% interest per annum, and will be repaid from TIF payments received by the City from the County in February and August each year. MOTION by Williams, second by Jindra, to Adopt Resolution 2003-05, a Resolution Ratifying and Specifying terms of the Inter-Fund Loans for the Sheffield TI~ District; and furthermore, to direct the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Resolution 2003-06, A~oroving and Specifying terms of Inter-Fund Loans for the Downtown CBD and University Avenue TIF Districts Shelly Eldridge, Ehler & Associates stated Resolution 2003-06, is different from the other two because we are looking at bringing this District into a deficit. There is one bond currently outstanding in the district and the payment is due in September. It is anticipated that in approximately two years we will have a permanent deficit in the District due to the class rate reduction. MOTION by Kelzenberg, second by Wyckoff, to Adopt Resolution 2003-06, a Resolution Approving and Specifying Terms of Inter-Fund Loans for Downtown CBD and University Avenue TIF Districts; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Anoka County Community Development Authority Streetar stated the Anoka County HRA wants to establish an EDA. Staff did attend the meeting that was hem in the Anoka County offices to discuss the issues. What they want to do is: 1) increase the tax base and improve the image in Anoka County; 2) establish this with regards to the Vikings stadium, the North Star Corridor, High Speed Internet Access and Marketing the County to outside development interests; 3) they want to Levy all Cities in the County at the HRA rate of . O144 percent on all taxable value. Columbia Heights share would be about $30,000, or 30% of the maximum $120,000. Staff suggests the following approach: 1. Amend the Anoka County bill, currently at the Legislature, limiting their ability to levy no more than 30% of the maximum. 2. In addition to limiting them to 30%, Columbia Heights could decide that we wanted part of their levy to use for economic or redevelopment. You could request the County Levy Economic Development Authority Meeting Minutes March 18, 2003 Page 3 of 4 more than the 30% and give it to the City to use. This would limit their ability to levy and allow the City to capture some of the funds. Staff had discussions with Barb Goodwin, Tim Yantos and Roger Jensen who felt this bill would pass, if not this year, next year. ,4noka County would be able to levy the maximum, which would allow the money to leave the community. W'yckoff asked if the City could pass a Resolution opposing the bill. Streetar stated Council could do that if they would like to. Murzyn suggested the ED,d and City COuncil oppose the bill and everyone call our commissioners to let them know how we feel on the issue. Motion by Jindra, second by Murzyn, to recommend City Council oppose Anoka County's proposal to create the Anoka County Community Development Authority and supporting the amendments to S.F. 547, limiting the ACCDA's ability to levy, to 30% of the maximum levy and authorizing the City of Columbia Heights to request that the ACCDA levy, on the City's behalf, up to 70% of the maximum levy allowed, and remm to the City of Columbia Heights that amount to fund redevelopment, economic development and housing related projects as authorized under Minnesota State Statutes, sections 469.001 -469.1080. All ayes. Motion Carried. ADMINISTRATIVE REPORTS INDUSTRIAL PARK $chumacher stated he talked to the owners of the old Honeywell building, Schaeffer Richardson about their interest in developing their site to conform with the City's redevelopment plans. They are very interested. $treetar stated the nice part about this is that the City wouldn't have to purchase the property to redevelop it. Schumacher stated staff has been contacted by the owners of the 3800 block building (old foundry building in the industrial area), proposing to sell the property to the City for approximately $2.5 million range. Murzyn questioned if it was possible for the City to condemn the building instead of buying it to save funds. Fehst stated condemning the building is an option, but felt it wouldn't affect the purchase price enough to make a difference. Streetar indicated staff would have an appraisal done prior to purchasing the land and that the Moratorium expires July 7tn of this year. Fehst informed the board that whenever condemnation is used, their will be some businesses that will be hurt, but it is a necessary process for redevelopment in the City. Motion by Nawrocki, second by Kelzenberg, to adjoum the meeting at 8:17 p.m. All ayes. Motion Carried. Respectfully submitted, Economic Development Authority Meeting Minutes March 18, 2003 Page 4 of 4 Cheryl Bakken Community Development Secretary H:\EDAmiautes2003\3-18-2003 1