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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