HomeMy WebLinkAboutEDA MIN 06-17-03ECONOMIC DEVELOPMENT AUTHORITY (EDA)
REGULAR MEETING MINUTES
June 17, 2003
CALL TO ORDER/ROLL CALL
President, Murzyn called the meeting to order at 6:31 p.m.
Present:
Don Murzyn Jr., Patricia $indra, Julienne Wyckoff, Bobby Williams and Bruce
Nawrocki, Tammera Ericson, and Bruce Kelzenberg
PLEDGE OF ALLEGIANCE
CONSENT AGENDA
Approval of Minutes
Move to adopt the minutes of the May 20, 2003, regular meeting as presented in writing.
Financial Report and Payment of Bills
Move to approve Resolution 2003-08, Resolution of the Columbia Heights Economic
Development Authority (EDA) approving the financial statements for May, 2003 and approving
payment of bills for May, 2003.
MOTION by Ericson, second by Williams, to adopt the consent agenda items as presented. All
ayes. Motion Carried.
ITEMS FOR CONSIDERATION
EDA Meeting Start Time Change
There was a discussion about changing the EDA meeting start time to 7p.m. instead of 6:3O p. m.
Motion by Wyckoff, second by Williams, to move the EDA meetings to 7:00 p.m. start time for
all future meetings or immediately following the HRA meetings. All ayes. Motion Carried.
Preliminary Development Agreement
Streetar stated the Preliminary Development Agreement is an agreement between the Columbia
Heights Economic Development Authority (EDA) and New Heights Development, LLC for the
Kmart site that would define the obligations of both the EDA and the developer, which could
lead to a formal development contract. In the Preliminary Development Agreement the
developer agrees to: 1) submit a proposal by August 1, 2003; 2)provide documentation of the
overall cost of the project, as well as a financing plan; 3) submit a redevelopment schedule; 4)
pay $12,500 or 25% towards the cost of the consultant planning study; 5) pay $5,000 or 50%
towards sewer study costs, and if the development occurs, pay the remaining $5,000 due; and 6)
deposit $1 O, O00 for any additional costs the City may incur as part of reviewing the proposal.
and if the City incurs costs beyond the $10,000, they will pay for those as well. The EDA agrees
to take necessary actions to determine potential need, public assistance, financing of the project
and to work with only this developer during the term of the agreement. In order to receive TIF
funding for the project we need to declare two of the buildings as structurally hazardous. SEH
Engineering Company will do an evaluation of the buildings.. Steve Bubul of Kennedy and
Graven provided and reviewed the agreement.
NaWrocki asked if staff checked out the credentials for New Heights Development, LLC and if
the property owner willing to work with this firm. Streetar stated staff did not check out their
credentials, as the agreement was submitted by Kennedy and Graven and Nedegaard is willing
Economic Development Authority Meeting Minutes
June 17, 2003
Page 2 of 3
to work with them. Williams stated it is written in the Agreement that New Heights Development
will provide their credentials to the City.
Nawrocki stated he is against anymore rental housing in Columbia Heights and wanted to know
what the comments were from last weeks Open House. Streetar stated the current plans are for
owner-occupied housing with price points from $150 to $350,000. The three main comments
from the Open House were: O it's about time; 2) concern by residents living behind Kmart of
blocking their view of the City; and 3) the back hill run off issues, which Nedegaard has already
discussed some kind of landscaping and tiering of the wall to prevent deterioration.
MOTION by Williams, second by Kelzenberg, to Approve the Preliminary Agreement between
the Columbia Heights Economic Development Authority (EDA) and the New Heights
Development, LLC (the Developer), and furthermore, to authorize the President and Executive
Director to enter into an agreement for the same. All ayes. Motion Carried.
ADMINISTRATIVE REPORTS
40th & Universi~,
Schumacher stated the Conoco Station is down and all the debris will be removed by the end of
the week. Staff received three competitive bids for the demolition. One was a little over $12,000,
one at $8,200 and the Iow bidder, Brown Contracting came in at $2,700. Brown is a local
company with a small operation that will take longer to remove the debris, but is very
reasonable. Paul Reinke of Haugland talked to Culvers recently. They are very interested in the
site and will let Paul know in a week or so.
Murzyn asked if the City requires documentation as to where the debris is disposed of.
Schumacher indicated the state regulates that as part of their state licensing.
Nawrocki asked how the negotiations are going to purchase the MGS building. Schumacher
stated the owners putting a bid in on a property on Central and will be ready to sell very soon to
sell the City their property.
Industrial Park Redevelopment
Schumacher stated staff has received approval of the funding for the contamination study of the
Industrial Park. The consultant will take the tests and file the reports to the state within a three-
month period of time. Staff went out for bids for the Phase II Environmental. Pro Source came
in with the low bid of $73, 700 and STS Consultants bid $80,000. Staff will be working with
Kevin Hansen and the Public Works staff on right-of-ways, railroad spurs, vacation of lines, and
easement issues involved with the site redevelopment.
37th & Central
Schumacher stated Mohamed Samaha owns the old Bridgeman's Restaurant site at 3800 Central
Avenue and wants to develop the three city owned sites, along with his site. Roman Roos, a
developer has worked with Samaha for the past three months to help with the redevelopment
plans and has gotten nowhere. Roos is now ready to work with the City on the redevelopment of
the site. Staff will talk to Samaha about the possibility of selling his property to the City. The
redevelopment site is only a $4 million development and many developers aren't interested in
that small of a [~'roject.
Economic Development Authority Meeting Minutes
Juae 17, 2003
Page 3 of 3
4833 University Avenue
Schumacher stated Collins Autobody has agreed to pay $65, O00 for the City owned single-family
home. Collins will remove the building this year and start construction by next summer.
Nawrocki stated at the last meeting staff was directed to negotiate the full $75, O00 for the
property. Schumacher stated he tried to receive the full price with no results. Williams
suggested staff check into what the cost would be if we burn or demolish the home and then sell
the property to Collins for the full amount. Streetar stated this could be done, but felt
Schumacher's time would be better spent on the Industrial Park Redevelopment rather than
trying to negotiate $10,000 difference for a blighted, non-conforming building site that no one
else is even interested in. Fehst directed staff to try to negotiate the full $75, O00 from Collins,
with the City removing the tree and home.
NEI
Streetar stated staff has contacted United, Welsh, Cornerstone, and Schaffer Richardson to
provide either redevelopment or reuse ideas for the NE[ building. The following is the
developers responses: 1) Cornerstone said tear the building down; 2) Welsh Wash 't interested in
the site; 3) United suggested tearing it down; and 4) Schaffer Richardson suggested tearing the
building down or using it for senior housing.
Dental Office on University,
Streetar stated the Dental office on University Avenue has submitted plans for a new dental
building to be built on his property, which was approved by P & Z and City Council. The owner
is talking about renting out the current house his dental office is in. The City Liquor store
manager has contacted staff in regards to purchasing the current dental office building and
constructing a new City Liquor Store in the site.
Streetar has talked to an individual from Ehlers & Associates that would be willing to work for
the City for a short period of time to help develop a pIan for the Liquor Store project. She has
experience in the development of other liquor stores in the twin cities. Murzyn directed staff to
put the item on the agenda for review.
GMHC
Streetar stated GMHC applied for and received $240,000 in funding from the state to purchase
13 homes in Columbia Heights for redevelopment and ask boardmembers to let staff know of any
homes staff should look at first. Williams suggested 37th and Buchanan where the property has
been vacant for years. Wyckoff suggested the Chies property on Tyler Street, across from First
Lutheran with the hole in the roof.
ADJOURNMENT
Motion by Williams, second by Jindra, to adjourn the meeting at 7:52 p.m.
Cheryl Bakken
Assistant Secretary
H:~EDAmmutes2603\6-17-2003