HomeMy WebLinkAboutEDA AGN 04-16-02CITY OF COLUMBIA HEIGHTS COMMISSIONMERS uettim
Robert W. Ruettimann nn
Patricia Jindra
590 40th Avenue N.E., Columbia Heights, MN 55421 -3878 (763) 706 -3600 TDD (763) 706 -3692 Marlaine Szurek
Visit Our Website at: wwwci.columbia- heights.mmus Julienne Wyckoff
Gary L. Peterson
Bruce Nawrocki
Bobby Williams
ECONOMIC DEVELOPMENT AUTHORITY
April 16, 2002
The following is the Agenda for the regular meeting of the Columbia Heights Economic Development
Authority (EDA) to be held IMMEDIATELY FOLLOWING THE HRA MEETING on Tuesday,
April 16, 2002, in Conference Room A, Parkview Villa, 965 40th Avenue N.E., Columbia Heights, MN
55421
The EDA does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its
accommodation will be provided to allow individuals with disabilities to participate in all EDA services, programs, and
activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in
advance. Please call the EDA Secretary at 706 -3669 to make arrangements (TDD 706 -2806) for deaf or hearing impaired
..,,it,
CALL TO ORDER/ROLL CALL.
PLEDGE OF ALLEGIANCE.
ADDITIONS/DELETIONS TO MEETING AGENDA.
CONSENT AGENDA.(These items are considered to be routine by the EDA Board of Commissioners
and will be enacted as part of the Consent Agenda by one motion.)
A. Move to adopt the consent agenda items as listed below:
1) Approval of Minutes.
a. The Regular Meeting of March 19, 2002.
2) Financial Report and Payment of Bills.
a. Financial Statement for March, 2002.
b. Payment of Bills for March, 2002.
MOTION: Move to approve Resolution 2002 -07, Resolution of the Columbia Heights
Economic Development Authority (EDA) approving the financial statement for March, 2002
and approving payment of bills for the month of March, 2002.
RECOGNITION, PROCLAMATIONS, PRESENTATIONS, GUESTS
ITEMS FOR CONSIDERATION.
Presentation by Dunbar Corporation- Walt Fehst
2. Adopt Resolution 2002 -04, Approving and Ratifying the Terms of an Interfund Loan
Policy and Approving the Interfund Loan Implementation Memorandum in
Connection with Housing Redevelopment TIF District No. 1 (P3)- Mark Nagel.
MOTION: Move to Adopt Resolution 2002 -04, a Resolution Approving and Ratifying the
terms of an Interfund Loan Policy and Memorandum in connection with Housing
Redevelopment TIF District No. 1 (P3); and furthermore, to authorize the President and
Executive Director to enter into an agreement for the same.
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPORTUNITY EMPLOYER
3. Approve Business Revolving Loan Fund Revisions- Mark Nagel
MOTION: Move to approve the revised BRLF Bylaws, Plan, Participation Agreement,
Guidelines and Loan Application forms and direct staff to implement.
ADMINISTRATIVE REPORTS
Report of the Acting Deputy Executive Director — Randy Schumacher.
1.
Sullivan Lake Settlement Agreement
2.
Status of 322 & 325 Summit Avenue
3.
Cost Benefit Analysis for 401h & University
4.
Tax Base for Industrial Park
5.
Kmart Update
6.
325 -40th Avenue MGS
7.
RFQ's Mailed Out & Advertised
8.
Lomianki Park Update
9.
Memo on 51St Court Plans
Report of the Executive Director — Walt Fehst.
OTHER REPORTS
1. Housing Update
2. Resident Council Minutes
ADJOURNMENT
Walter R Fehst, Executive Director
H AedaAgenda2002 \4 -16 -2002
The mission of the Cofum6ia .heights Economic (Development Authority is to provide financial and technical assistance
and resources to residential commercial and industrial interests to promote health, safety, we fare, economic development
and redevelopment.
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
REGULAR MEETING MINUTES OF MARCH 19, 2002
CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development
Authority (EDA) was called to order by President, Ruettimann at 6:36 p.m., Tuesday, March 19,
2002, in the City Hall, Conference Room 1, 590 40th Avenue NE, Columbia Heights, Minnesota.
ROLL CALL
Commission Members Present: Robert Ruettimann, Patricia Jindra, Marlaine Szurek, Gary
Peterson, Julienne Wyckoff, Bruce Nawrocki, and Bobby
Williams
Commission Members Absent:
Staff Present: Walt Fehst, Executive Director
Randy Schumacher, Acting Deputy Executive Director
Cheryl Bakken, Secretary
Mark Nagel, Housing Assistant
ADDITIONS/DELETIONS TO MEETING AGENDA- Bakken passed out revised agenda
items 4 and 5.
CONSENT AGENDA
Approval of Minutes
Move to adopt the minutes of the February 19, 2002, regular meeting as presented in writing.
Financial Report and Payment of Bills
Move to approve Resolution 2002 -06, Resolution of the Columbia Heights Economic
Development Authority (EDA) approving the financial statements for February, 2002 and
approving payment of bills for February, 2002.
Nawrocki asked what the disbursements for Columbia Heights Housing and Jay Brothers were
for. Schumacher stated the Columbia Heights Housing was the sixth and last payment on the
Transition Block Townhome Project using Liveable Community Funding and Jay Brothers was
for the demolition of 828 40`h Avenue, the old TV shop.
MOTION by Peterson, second by Szurek, to adopt the consent agenda items as listed. All ayes.
Motion Carried.
ITEMS FOR CONSIDERATION
REQUEST FOR QUALIFICATIONS RELATING TO THE REDEVELOPMENT OF
INDUSTRIAL ZONING PROPERTIES
Schumacher indicated in February, the City Council and EDA approved a Request for
Qualifications (RFQ) process for redevelopment of the industrial area east of University
bounded by Jefferson Street, 37`" Avenue, University Avenue, and 39' Avenue /Lookout Place.
The RFQ process is a faster and more streamlined approach than the RFP. The draft RFQ is a
combination of several examples from metro area cities. After the EDA Board and City Council
approve the document, it will be mailed out to interested developers.
Economic Development Authority Meeting Minutes
March 19, 2002
Page 2 of 6
Ruettimann asked if we would be requesting qualifications for the entire Industrial Area.
Schumacher indicated it was very possible and is recommended.
Nawrocki asked if it was staff's intent to find a developer that would rebuild the entire area, and
is it anticipated that the developer will receive their compensation from the redevelopment, or
would the City be responsible for a portion of the cost. Schumacher stated the first step is for the
Board to find a developer's proposal acceptable, and the next step in the process would be to
determine the funding for the redevelopment.
Wyckoff was concerned that the business and homeowners should be notified prior to sending
out the RFQ. Fehst indicated other cities usually do not to send out notices for this step of the
redevelopment process.
Ruettimann asked if the commercial redevelopment area along Central Avenue should also be
sent out with the proposals. Schumacher explained the Industrial area is a very large portion of
land and combining the two may be too much to attempt at one time. Once the RFQ's are
received, the Board can determine which area to work on first, what developer, etc.
After some discussion, the consensus of the Board was to extend the Industrial Development area
to 40&' Avenue on the east side of University. Staff will make the change to the maps prior to
mailing out the RFQ's.
MOTION by Peterson, second by Szurek, to recommend to the City Council approval of the
RFQ document for the Columbia Heights Industrial Center Redevelopment Project amending the
following:
1. Under 4.5 it should read: The City of Columbia Heights City Council will consider the
Economic Development Authority's recommendation at their July 8, 2002 meeting.
2. Under 1. Project Context, should read: The City of Columbia Heights is initiating
redevelopment of an industrial area generally bounded by 37' Avenue on the south,
Jackson Street on the east, 39' Avenue and Lookout Place on the north and all Industrial
and General Business areas to the west of University extending from 37th to 40"' Avenue
(see Appendix A for map). The City of Columbia Heights is seeking qualifications from
interested development teams to assist the City in redeveloping the property described in
Appendix A.
3. Under number 2.3 it should read: 56 Parcels- 2 City - owned, housing about 20
companies.
All Ayes. Motion Carried.
Williams asked if we have any idea what the tax base is currently or what we can expect if the
area is redeveloped. Schumacher stated staff does have some figures available. Ruettimann
requested staff provide the figures to the Board.
ACTION STEPS FOR IMPLEMENTATION OF THE MCCOMB STUDY
Nagel stated that priority #7 of the 2002 Community Development Goals is to increase the City's
tax base, which includes a step to evaluate and implement recommendations from the McComb
Study. The mission statement and six objectives with steps for implementation are listed in the
packet.
Economic Development Authority Meeting Minutes
March 19, 2002
Page 3 of 6
Nawrocki asked what the Rainbow Project was. Fehst indicated Rainbow submitted plans for a
gas station and strip mall to be constructed on their site last fall and due to employee changes,
the project was put on hold. Schumacher indicated staff has approved the plans for the gas
station, which should start in another month or so.
Nawrocki was concerned that Kmart has a year lease on the building and wondered if the
building would be left vacant for 6 months. He asked if staff has an idea of what the property
owner plans to do with the building. Schumacher stated he has contacted the owners and they
are not ready to address their intentions for the building at this time.
MOTION by Peterson, second by Szurek, to approve the Implementation Plan for the McComb
Group, Ltd. Downtown Market Study. All ayes. Motion Carried.
BUSINESS REVOLVING LOAN DOCUMENTS
Nagel indicated that in November of 2001, the EDA approved the formation of a three - member
committee to review and revise the BRLF Loan documents. Staff has prepared a draft version of
the Bylaws, Plan, Application, and Guidelines for the committee to review. Staff recommended
setting a meeting of April 8, 2002 for the Committee to meet, revise the documents, and submit
them to the EDA at a future meeting for approval.
Ruettimann requested staff send a copy of the revised documents to Ery Bednard for review and
comment and schedule a meeting of the committee for April 8, 2002 in the Community
Development Blue Room at 4:00 p.m. Nagel will confirm the meeting with the committee.
MOTION by Peterson, second by Williams, to establish a meeting date of April 8, 2002, in the
Community Development Department Blue Room at 4:00 p.m. for the BRLF Loan Review
Committee to review, compare, and revise the guidelines, bylaws, plan and application and
submit the final draft to the EDA Board at a future meeting for further consideration. All ayes.
Motion Carried.
APPLICATION C1998 -08, CDBG HOUSING REHABILITATION PROGRAM
Schumacher reported staff has been working with Dave King from CEE for the past six months
to finalize the Rehabilitation Grants for 1998 and 99. Anoka County has made many extensions
to the grant funding for the City and has given the last and final extension date of April 1". Staff
requested an additional extension until the two final grants are completed sometime this spring,
but in the letter from Anoka County addressing the issue it states they have been receiving a lot
of pressure from the state in releasing the funds and could not promise reimbursement.
Schumacher indicated that because the grants before the board are not complete, he asked for an
amendment to the original motion for these two grants presented tonight to read as follows:
Contingent upon Anoka County signing a Procedure to Work Authorization, and guaranteeing
full funding of the project.
Fehst stated he and staff have contacted various officials in the County for assistance.
Ruettimann requested Schumacher and Fehst set up a meeting with Jim Kordiak and Paul
McCarron to get a commitment on behalf of Anoka County.
Schumacher indicated CEE has processed a CDBG Housing Rehabilitation Deferred Grant for
the property at 4036 6`" Street in the amount of $15,908 to Windows America, Roof Partners, and
Economic Development Authority Meeting Minutes
March 19, 2002
Page 4 of 6
Otogawa - Anschel for replacing windows, performing ceiling and roof repairs to the home.
MOTION by Peterson, second by Williams, to approve the CDBG Housing Rehabilitation
Deferred Grant/Loan Application for Grant #1998 -08 in the amount of $15,908 for housing
rehabilitation to Windows America, Roof Partners, and Otogawa - Anschel, and the Center for
Energy and Environment subject to meeting all program requirements; and furthermore to direct
staff to submit the loan application to Anoka County and to authorize all related expenses to be
reimbursed from Fund 202 - 46350- 4600/3050, contingent upon Anoka County signing a
Procedure to Work Authorization, and guaranteeing full funding of the project. All ayes.
Motion Carried.
APPLICATION C1998 -10, CDBG HOUSING REHABITATION PROGRAM
Schumacher indicated CEE has processed a CDBG Housing Rehabilitation Deferred Grant for
the property at 3752 2 i Street in the amount of $20,833 to Custom Home Remodeling for
replacing the furnace, windows and frames, repair ceiling, install fascia, gutters, roof on the
garage, and sidewalk and patio repairs that will be made to the property.
MOTION by Peterson, second by Williams, to approve the CDBG Housing Rehabilitation
Deferred Grant/Loan Application for Grant #1998 -10, in the amount of $20,833 for housing
rehabilitation to Custom Home Remodeling, and the Center for Energy and Environment subject
to meeting all program requirements; and furthermore, to direct staff to submit the loan
application to Anoka County and to authorize all related expenses to be reimbursed from Fund
202 - 46350- 4600/3050, contingent upon Anoka County signing a Procedure to Work
Authorization, and guaranteeing full funding of the project. All ayes. Motion Carried.
ADMINISTRATIVE REPORTS
REDEVELOPMENT PLAN FOR 40TH AND LOOKOUT PLACE
Schumacher indicated the preliminary redevelopment proposal for the southeast corner of
University and 40`" Avenue in the packet is made up of five parcels of property and a partial
vacation of Lookout Place. The City owns the vacant lots on the west side of Lookout, and is in
the process of purchasing the Conoco Station directly to the north. The single-family home at
325 Summit Street is vacant and will soon be put up for sale. Michael Sweat, the general
business parcel at 322 40`h Avenue, has indicated they would like to relocate to a larger building
in Columbia Heights. The proposal has been discussed with the City Engineers. Schumacher
pointed out the area on a map for discussion.
Schumacher indicated funding would come from 1) the resale of the home on Summit Avenue; 2)
the $35, 000 from Monroe property; 3) $30, 000 approximately, left over from Central Avenue
property purchases; and 4) CDBG funding.
Nawrocki recommended the property owners on Summit be advised of the City's intentions, due
to more traffic being routed down Summit if 40'h and Lookout Place access is blocked off and he
would like staff to submit a Cost Benefit Analysis of the project. Ruettimann stated the owners
on Summit will be notified at the proper time, but didn't feel that they would experience anymore
traffic on the block. He then directed staff prepare a Cost Benefit Analysis for the project.
Economic Development Authority Meeting Minutes
March 19, 2002
Page 5 of 6
MOTION by Ruettimann, second by Williams, to direct Schumacher to negotiate an agreement
with the two property owners on Summit Avenue on behalf of the City and for staff to prepare a
Cost Benefit Analysis. All ayes. Motion Carried.
LOMIANKI PARK UPDATE
Schumacher indicated City Council has been involved in discussions regarding potential
development of portions of Lomianki Park. Bruce Nedegaard approached City Council with a
concept development plan for high - density townhomes. The plan included the entire portion of
south Lomianki Park, as well as a portion of land extending up 37`h Avenue on the south.
Nedegaard met with the owner of the small industrial business located at 82 38`h Avenue, and the
owner of the residential home at 3702 Main Street, and is pursuing negotiations for both
properties. The owner of the industrial property indicated he would like to sell the building and
land. Staff outlined the steps necessary to develop the land and provided a copy of the appraisal
for the north and south parcels. The first step for redevelopment is a public open house, which is
scheduled for March 26`h at 7: 00 p. m. in the Council Chambers, where Nedegaard will present
the townhome concept plan for south Lomianki Park.
3722 CENTRAL AVENUE UPDATE
Schumacher reported the closing of Vera Johnson's property at 3722 Central Avenue was
delayed due to some family issues related to the signing of the deed, but felt confident the closing
should be finalized within the next week. Johnson has taken an apartment in Parkview Villa
south. The property at 3718 Central Avenue (VonHeidemann's), was acquired a couple of
months ago. Staff has already discussed options with some developers interested in the two
properties.
ANNUAL REPORT
Schumacher presented the Board with a copy of the Community Development Department's
Annual Report for 2001, which provided a description of the highlights that occurred, some data
and documentation for informational purposes only.
TOUR WITH DUNBAR DEVELOPMENT CORPORATION
Fehst indicated he and the Community Development Department staff took a tour of Shakopee on
March 5`h with Dunbar Corporation to see some of the facilities they have developed in the area.
The purpose of the tour was to check out possibilities for the Mady s site on Central Avenue in
Columbia Heights. The plan included three floors of senior housing above City offices, public
space for the Library and possibly some room for the Police and Fire Department. He felt this
was a concept that could work for Columbia Heights. Fehst received a development package
from Dunbar that he directed staff to copy and distribute to the Board members for review and
would like to see Dunbar's development concept placed on the April agenda for discussion.
OTHER BUSINESS
Nawrocki received a call from the Ostlund brothers that own the property behind White Castle
on Central Avenue. They asked Nawrocki to get feedback from the EDA and City Council on the
idea of building townhomes on the site. Ostlund indicated they have already talked to a couple
of developers on the townhome idea.
Peterson indicated he felt if anything was built on the site, access to the property would have to
come from 52 nd Avenue, which is Fridley owned.
Economic Development Authority Meeting Minutes
March 19, 2002
Page 6 of 6
Szurek and Wyckoff remembered a motel that submitted plans for the site approximately four
years ago. It was going to be called the Baymont Hotel, but was never developed due to the lack
of visibility. Ruettimann directed staff look up the plans and give copies to the Board.
Nawrocki will convey to the Ostlund brothers that the consensus of the Board was that
townhomes or restaurants would be nice for the site.
ADJOURNMENT
President, Ruettimann, adjourned the meeting at 9:06 p.m.
Respectfully submitted,
Cheryl Bakken
Recording Secretary
H: \EDAminutes2002 \3 -19 -2002
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of. April 16, 2002
AGENDA SECTION: Consent Agenda
ORIGINATING
EXECUTIVE
NO:
DEPARTMENT: EDA
DIRECTOR
APPROVAL
ITEM: Financial Report and Payment of Bills
BY: Randy Schumacher
BY:
DATE: Aril 10, 2002
BACKGROUND:
The bound Financial Report for March 1, 2002 Check Listing (green sheets), and draft Resolution 2002-
07 are attached for review. The enclosed Financial Report lists the Revenue Guideline (pink sheets), the
Expenditure Guideline (yellow sheets), Expenditure Guideline with Detail (white sheets), and Balance
Sheet (blue sheets), for each fund and department. The report covers the activity in the calendar (fiscal)
year from January 1 through March 31, 2002.
The Check History shows each fund with an expenditure history during the month of March, 2002. The
total disbursements by fund are shown at the top of the listing.
RECOMMENDATION:
Staff will be available to answer specific questions. If the report is satisfactorily complete, we
recommend the Board take affirmative action to receive the Financial Report and approve the payment
of bills.
RECOMMENDED MOTION:
Move to approve Resolution 2002 -07, Resolution of the Columbia Heights Economic Development
Authority (EDA) approving the Financial Statement for March, 2002 and Payment of Bills for the month
of March, 2002.
EDA ACTION:
H: \Consent2002 \March.FinRep2002
EDA RESOLUTION 2002 -07
RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT
AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR MARCH,
2002 AND PAYMENT OF BILLS FOR THE MONTH OF MARCH, 2002.
WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by
Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which
shows all receipts and disbursements, their nature, the money on hand, the purposes to which the
money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and
WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's
vouchers or bills and if correct, to approve them by resolution and enter the resolution in its
records; and
WHEREAS, the financial statement for the month of March, 2002 and the list of bills for the
month of March, 2002 are attached hereto and made a part of this resolution; and
WHEREAS, the EDA has examined the financial statement and the list of bills and finds them
to be acceptable as to both form and accuracy.
NOW,THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia
Heights Economic Development Authority that it has examined the attached financial statements
and list of bills, which are attached hereto and made a part hereof, and they are found to be
correct, as to form and content; and
BE IT FURTHER RESOLVED the financial statements are acknowledged and received and
the list of bills as presented in writing are approved for payment out of proper funds; and
BE IT FURTHER RESOLVED this resolution and attachments are to be made a part of the
permanent records of the Columbia Heights Economic Development Authority.
Passed this _ day of , 2002.
MOTION BY:
6=601M:1103
AYES:
NAYS:
Robert Ruettimann, President
Attest by:
Cheryl Bakken, Secretary
H; \Resolutions2002\2002 -07
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of. April 16, 2002
AGENDA SECTION: Items for Consideration
ORIGINATING
EXECUTIVE
NO:
DEPARTMENT: EDA
DIRECTOR
APPROVAL
ITEM: Adopt Resolution 2002 -04, Approving
BY: Mark Nagel
BY:
and Ratifying the Terms of an Interfund Loan
DATE: April 10, 2002
Policy and Approving the Interfund Loan
Implementation Memorandum in Connection
with Housing Redevelopment TIF District No.I
(P3)
h:
BACKGROUND: On December 17, 2001, the EDA Board adopted Resolution 2001 -20, modifying the
Downtown Central Business District (CBD) Revitalization Plan for the CBD Development Project and
adopting a modification to TIF District No. 1, the scattered site district. Shelley Eldridge,. Ehlers &
Associates has prepared the attached documents to establish an Interfund Loan and Memorandum. The
principal of $268,000 assumes no interest rate including $81,000 already spent in the District, which leaves
$187,000 to purchase blighted properties. The $81,000 repayment includes: $34,000 for 3855 Main Street
acquisition; $17,500 for 4401 Quincy Street acquisition; and $29,500 for 3913 Polk Street acquisition and
demolition. If these repayments were not made, then there would be a total of $268,000 available for
purchase of blighted properties. This policy decision is up to the EDA Board.
RECOMMENDATION: Staff recommends Board adoption of Resolution 2002 -04, approving and
ratifying the terms of an Interfund Loan Policy and Memorandum in connection with TIF District No. 1
(P3).
RECOMMENDED MOTION: Move to waive the reading of Resolution 2002 -04, there being an ample
amount of copies available to the public.
RECOMMENDED MOTION: Move to Adopt Resolution 2002 -04, a Resolution Approving and
Ratifying the terms of an Interfund Loan Policy and Memorandum in connection with Housing
Redevelopment TIF District No. 1 (P3); and furthermore, authorize the President and Executive Director to
enter into an agreement for the same.
Attachments
EDA ACTION:
\consent Form2002 \Adopt Res. 2002 -04 Interfund Loan (P3)
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
INTERFUND LOAN IMPLEMENTATION MEMORANDUM
From: Mark Nagel
Date: April 10, 2002
Project: Housing Redevelopment TIF
Pursuant to Columbia Heights Economic Development Authority Resolution No. 2002 -04,
an interfund loan is being proposed to pay costs to be incurred in relation to Housing
Redevelopment Tax Increment Financing District No. 1.
The loan is proposed to be made under the following terms and conditions:
1. Amount: $268,000
2. Source: Parkview Villa South's Reserve Fund
3. Duration: 22 years (District expires 12/31/23)
4. Date of first payment: August 1, 2002
5. Repayment source: Tax Increments
6. Interest rate: None
Approved this day of , 2002.
Robert Ruettimann- President
ATTEST:
Walter R. Fehst- Executive Director
HATIF2002\Interfund Loan Implementation Memo
DJG- 210041v1
CL205 -3
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2002-04
APPROVING AND RATIFYING THE TERMS OF AN INTERFUND LOAN POLICY
IN CONNECTION WITH HOUSING REDEVELOPMENT TIF DISTRICT NO. 1
BE IT RESOLVED BY THE BOARD OF COMMISSIONERS ( "BOARD ") OF THE
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ( "AUTHORITY ") AS
FOLLOWS:
Section 1. Background.
1.01. The Authority has heretofore approved the establishment of the Housing
Redevelopment Tax Increment Financing District No. 1 (the "TIF District ") within Central Business
Redevelopment District (the "Project "), and has adopted a tax increment financing plan (the "TIF
Plan") for the purpose of financing certain improvements within the Project.
1.02. Under Minnesota Statutes, Section 469.178, Subdivision 7, the Authority is
authorized to advance or loan money from the Authority's general fund or any other fund from
which such advances may be legally made, in order to finance costs which may otherwise be paid
pursuant to the TIF Plan (the "Qualified Costs ").
1.03. The Authority intends to reimburse itself for the Qualified Costs from tax increments
derived from the TIF District in accordance with the terms of the Policy set forth in this Resolution.
Section 2. Terms of TIF Loan.
2.01. The Authority is hereby authorized to make one or more loans from its general fund,
or any other source from which such loans may be made, to pay Qualified Costs.
2.02. The maximum principal amount of any single loan made pursuant to this Policy
shall be $268,000 (each such loan is referred to herein as a "Loan").
2.03. Principal ( "Payments ") on a Loan shall be paid semi - annually on each August 1 and
February 1 commencing on such date as may be determined by the Authority and
continuing thereafter to and including the earlier of (a) the date the principal of the
TIF Loan is paid in full, or (b) the date of last receipt of tax increment from the TIF
District ( "Payment Dates "). Payments will be made in the amount and only to the
extent of Available Tax Increment as hereinafter defined. Payments shall be applied
to unpaid principal.
2.04. Unless otherwise determined by the Authority, Payments on a Loan shall be payable
solely from "Available Tax Increment," which shall mean, on each Payment Date, all of the tax
increment generated in the preceding six (6) months with respect to the property within the TIF
District and remitted to the Authority by Anoka County, all in accordance with Minnesota Statutes,
Sections 469.174 to 469.179. Unless otherwise approved by the Authority, payments on a Loan are
subordinate to any outstanding or future bonds, notes, or contracts secured in whole or in part with
nT(-T_? 1 ( )97 ,1
Available Tax Increment, and are on parity with any other outstanding or future interfund loans
secured in whole or in part with Available Tax Increment.
2.05. The principal sum payable under this TIF Loan are pre - payable in whole or in part at
any time by the Authority without premium or penalty. No partial prepayment shall affect the
amount or timing of any other regular payment otherwise required to be made under this TIF Loan.
2.06. Unless otherwise approved by the Authority, a Loan shall be a limited obligation
payable solely from Available Tax Increment pledged to the payment hereof under this resolution.
Unless otherwise approved by the Authority: (i) a Loan shall not be deemed to constitute a general
obligation of the State of Minnesota or any political subdivision thereof, including, without
limitation, the Authority; (ii) neither the State of Minnesota, nor any political subdivision thereof
shall be obligated to pay the principal of this TIF Loan or other costs incident hereto except out of
Available Tax Increment; (iii) neither the full faith and credit nor the taxing power of the State of
Minnesota or any political subdivision thereof shall be pledged to the payment of the principal of
this TIF Loan or other costs incident hereto; and (iv) the Authority shall have no obligation to pay
any principal amount of the TIF Loan, which may remain unpaid after the final Payment Date.
2.07. The Authority may amend the terms of this Policy at any time by resolution of the
Authority's Board of Commissioners, including a determination to forgive the outstanding principal
amount and accrued interest to the extent permissible under law.
Section 3. Implementation. Prior to any Loan being made, the Board's staff and consultants
are directed to submit to the Board of the Authority the amount, use, duration, repayment source,
and other relevant terms of the proposed loan, at which time the Board may either approve, deny, or
modify the proposed terms.
Section 4. Effective Date. This resolution is effective upon the date of its approval.
Adopted this day of , 2002.
ATTEST:
Robert Ruettimann- President
Walter R. Fehst- Executive Director
2
rnr(-_? 1 0077.1
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
REGULAR MEETING MINUTES OF DECEMBER 17, 2001
CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development
Authority (EDA) was called to order by Vice President, Jindra at 6:01 p.m., Monday, December
17, 2001, in Conference Room 1, City Hall, 590 40`h Avenue NE, Columbia Heights, Minnesota.
ROLL CALL
Commission Members Present: Patricia Jindra, Marlaine Szurek, Gary Peterson, Julienne
Wyckoff, Bruce Nawrocki, and Bobby Williams
Commission Members Absent: Robert Ruettimann
Staff Present: Walt Fehst, Executive Director
Randy Schumacher, Acting Community Dev. Director
Cheryl Bakken, Secretary
Tim Johnson, City Planner
Mark Nagel, Housing Assistant
ITEMS FOR CONSIDERATION
Other Resolutions.
Approve Resolution 2001 -20, Modifying the Downtown Central Business District (CBD)
Revitalization Plan for the CBD Redevelopment Project and the Modification of Housing
Redevelopment TIF District #1 (P3)
Schumacher indicated that on May 27, 1997, the Columbia Heights City Council approved a
scattered site redevelopment TIF District to facilitate redevelopment of substandard single -
family homes. Tax increments from the 56 parcels were to be used to finance land acquisition,
demolition, relocation, and related development costs.
Shelley Eldridge, Ehlers & Associates explained that after reviewing progress of the district, it
was determined the City needs to show activity and any modifications be completed on each of
the 56 parcels by September 8, 2002 or they will be dropped from the District. This would
reduce the TIF revenue generated. The following steps can be taken: 1) add 10 parcels to the
District to increase the revenue stream; 2) complete a projection of funds; 3) expend the
projected funds prior to the September 8, 2002 deadline; and 4) City funds spent in the past 4
years on the parcels will be reimbursed by the District and spent on other housing activities
within the District.
Nawrocki asked if the District encompassed the entire City, or certain areas. Eldridge explained
that the maps in the agenda packet show where the properties are located, and explained that
they are scattered throughout the City.
Peterson indicated that if any of the affected property owners would upgrade their home, the
City would receive the tax credits.
VMOTION by Peterson, second by Szurek, to waive the reading of Resolution 2001 -20, there
being ample copies available to the public. All ayes. Motion Carried.
Economic Development Authority Meeting Minutes
December 17, 2001
Page 2 of 3
MOTION by Nawrocki, second by Wyckoff, to adopt Resolution 2001 -20, a Resolution
Modifying the Downtown Central Business District (CBD) Revitalization Plan for the CBD
Redevelopment Project and the Modification of Housing Redevelopment Tax Increment
Financing District No. 1 (P3). All ayes. Motion Carried.
Other Business.
CDBG Program Application for 2002
Schumacher indicated that the EDA is required to submit the 2002 CDBG Program Application
to Anoka County requesting funds for potential projects no later than January 11, 2002. The
application will also be presented to City Council for approval. Anoka County's total grant
amount for 2002 is approximately $1,864, 000, of which $1,114,500 is available for cities and
townships. Each project submitted is limited to a maximum amount of $300, 000. In order to
qualify for the CDBG Program funds the project must meet one of three objects; 1) benefit low to
moderate income families; 2) show prevention or elimination of slums or blighted areas; and 3)
provide an urgent need in the City. Federal regulations include Davis -Bacon labor standards,
environmental, fair housing, relocation, lead -based paint, equal opportunity, record keeping
and auditing. Staff considered the following plans:
• A planning study for an Industrial Parr which would provide an inventory of existing
businesses, market analysis ofproperties, and facts to determine the highest and best use
of land and buildings for approximately S65,000- 70, 000 based on the proposal from
Hoisington Koegler Group.
• The acquisition of deteriorated/non- conforming properties in the City.
• Additional funds to support Community Fix -Up Loans for a maximum of $300, 000.
Schumacher indicated that ACCAP has initiated two of the ten total grants received and
will continue to finalize them, whereas, CEE has only processed, a total of three all year,
with five left to finalize.
Of the three possible plans, staff recommended submittal of the Industrial Park Redevelopment
Planning Study to Anoka County.
Wyckoff felt that the City has had too many studies done on it with no action taken. She would
like to see an industrial park or a townhome project put in the vicinity of 37" and University.
Williams indicated that he drove through the City's industrial area at 37" and University, and
was embarrassed at the way it's underdeveloped, run down and dirty. Williams stated the
Board, needs to focus on this area, as it is the gateway to our City on University Avenue. He
would like to see a new industrial park redevelopment put in.
Johnson explained there was little time to prepare this application, therefore, he chose to get a
proposal from Hoisington Koegler, a firm he has worked with before, but will pursue another
proposal or two for Board approval, if they choose to approve the motion for the Industrial Park
Redevelopment Planning Study.
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
CITY OF COLUMBIA HEIGHTS
ANOKA COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2001-20
RESOLUTION ADOPTING A MODIFICATION TO THE DOWNTOWN
CENTRAL BUSINESS DISTRICT (CBD) REVITALIZATION PLAN FOR THE
CBD REDEVELOPMENT PROJECT AND ADOPTING A MODIFICATION TO
THE TAX INCREMENT FINANCING PLAN FOR HOUSING
REDEVELOPMENT TAX. INCREMENT FINANCING DISTRICT NO. 1
THEREIN.
WHEREAS, it has been proposed by the Board of Commissioners (the "Board ") of the Economic
Development Authority (the "EDA ") and the City of Columbia Heights (the "City") that the EDA adopt a
Modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD
Redevelopment Project and adopt a Modification to the Tax Increment Financing Plan (the
"Modifications ") for Housing Redevelopment Tax Increment Financing District No. 1 therein (the
"District "), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections
469.090 through 469.1081, and Sections 469.174 to 469.179, inclusive, as amended (the "Act "), all as
reflected in the Modifications and presented for the Board's consideration; and
WHEREAS, the EDA has investigated the facts relating to the Modifications and has caused the
Modifications to be prepared; and
WHEREAS, the EDA has performed all actions required by law to be performed prior to the
adoption of the Modifications. The EDA has also requested the City Planning Commission to provide for
review of and written comment on the Modifications and that the Council schedule a public hearing on
the Modifications upon published notice as required by law.
NOW, THEREFORE, BE IT RESOLVED by the Board as follows:
1. The EDA hereby reaffirms that the District as modified herein is in the public interest and
is a "redevelopment district" under Minnesota Statutes, Section 469.174, Subd. 10 (a) (1) and finds that the
Modifications conform in all respects to the requirements of the Act and will help fulfill a need to develop
an area of the Sate of Minnesota which is already built up and that the adoption of the propose
Modifications will help provide redevelopment to the housing stock and thereby serves a public proposed.
2. The EDA further finds that the Modifications will afford maximum opportunity,
consistent with the sound needs for the City as a whole, for the development or redevelopment of the
project area by private enterprise in that the intent is to provide only that public assistance necessary to
make the private developments financially feasible.
3. Conditioned upon the approval thereof by the City Council following its public hearing
thereon, the Modifications, as presented to the EDA on this date, are hereby approved, established and
adopted and shall be placed on file in the office of the Deputy Clerk.
4. Upon approval of the Modifications by the City Council, the staff, the EDA advisors and
legal counsel are authorized and directed to proceed with the implementation of the Modifications and for
this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans,
resolutions, documents and contracts necessary for this purpose. Approval of the Modifications does not
constitute approval of any project or a Development Agreement with any developer.
5. Upon approval of the Modifications by the City Council, the Deputy Clerk is authorized
and directed to forward a copy of the Modifications to the Minnesota Department of Revenue.
6. The Deputy Clerk is authorized and directed to forward a copy of the Modifications to
the Anoka County Auditor and request that the Auditor certify the original tax capacity of the District as
described in the Modifications, all in accordance with Minnesota Statutes 469.177.
Approved by the Board of Commissioners of the Economic Development Authority this 17" day
of December, 2001.
Robert Ruettimann, Presi
ATTEST:
Cheryl akken, Secretary
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting o£ , 2002
AGENDA SECTION: Items for Consideration
ORIGINATING
EXECUTIVE
NO:
DEPARTMENT: EDA
DIRECTOR
43
APPROVAL
ITEM: Approve Business Revolving Loan Fund
BY: Mark Nagel
BY:
Revisions
I DATE: April 9, 2002
BACKGROUND: With the sale of the Neilsen and Chartraw Home Mortgage loans to Community
Reinvestment Fund, Inc. for $33,343.67 and the early repayment of the Warrick loan of $1,811.89 last
October, there is approximately $35,155.56 in the Business Revolving Loan Fund (BRLF) account,
plus an undetermined amount from the repayments of the outstanding business loans over the past
seven years. As you may recall, the last time the BRLF Loan Review Committee meeting was on
February 29, 1996. At the October 17, 2001 EDA meeting, a Committee was established to review
and update the BRLF materials.
The Committee consisting of Councilmember Julienne Wyckoff, EDA President, Bob Ruettimann,
and former banker Ery Bernard, met on Monday, April 8' to review and update these guidelines. The
final draft, which differs little from the original, is attached for your consideration. The Committee
was in agreement with the revisions.
If approved, according to the bylaws, two more members need to be named, and discussion will need
to be held with the Finance Department to establish an exact amount in the BRLF. The program
would then be marketed to area banks and businesses this Spring, in order to take advantage of this
year's construction season.
RECOMMENDATION: Staff recommends approval of the BRLF Loan revised BRLF Bylaws,
Plan, Participation Agreement, Guidelines and Loan Application forms.
RECOMMENDED MOTION: Move to approve the revised BRLF Bylaws, Plan, Participation
Agreement, Guidelines and Loan Application forms and direct staff to implement.
Attachments
EDA ACTION:
BRLF Document
CITY OF QOLUMBIA HEIGHTS
59040th Avenue N.E., Columbia Heights, MN 55421 -3878 (763) 706 -3600 TDD (763) 706 -3692
Visit Our Website at: wwci.columbia- heiAhts.mn.us
Community Development
To: EDA Board Members
From: Tim Johnson, City Planner
Date: 4/10/2002
Re: Lomianki Park Development Update
As you are aware, the City Council has identified the development of property south of
Lomianki Park (37th Ave to 38th Ave) as one of its priority projects for 2002. Following
this direction, the City of Columbia Heights hosted an open house on the potential
development of this property on March 26, 2002. Approximately 25 residents attended
the open house as well as several City Council and Planning Commission members.
The following action steps will be necessary before any additional land use decisions can
be made:
• The Park and Recreation Commission will be meeting on April 24, 2002, to
discuss and provide a recommendation on whether or not to continue recognizing
this area as part of Lomianki Park.
• The Planning Commission will be meeting on May 7, 2002, to discuss and
provide a recommendation on whether or not to continue recognizing this area as
part of Lomianki Park.
• The City Council will be meeting sometime in May 2002, to look at the
recommendations of both the Park and Recreation Commission and the Planning
Commission, in order to make a determination on whether or not to continue
recognizing this area as part of Lomianki Park.
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPORTUNITY EMPLOYER
CITY OF COLUMBIA HEIGHTS
590 40th Avenue N.E., Columbia Heights, MN 55421 -3878 (763) 706 -3600 TDD (763) 706 -3692
Visit Our Website at: wvIw.ci.coiumbia- heights.mn.us
Community Development
To: EDA Board Members
From: Tim Johnson, City Planner
Date: 4/10/2002
Re: 51St Court Properties
The properties located at 5045, 5065, and 5075 51St Court (behind White Castle and
La Casita) have been recently considered for possible residential development, but
currently are zoned as General Business. Under General Business guidelines
potential uses include: offices, personal and professional services, retail, restaurant,
hotel, funeral home, etc. The properties have been vacant for a number of years, and
as such have not generated any commercial development of any kind. However,
there have been a number of interesting proposals that have been submitted over the
years.
A site plan was approved in 1990 for a two -story office building to be built at 5065
51St Court, but never materialized. A Baymont Hotel concept was also preliminarily
submitted to staff in Winter of 2000, but was never followed through on. It should be
noted that staff continues to receive plenty of inquiries regarding these properties,
from interested commercial and residential parties.
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPORTUNITY EMPLOYER
PLANNING AND ZONING COMMISSION
R. MEET NG - AGENDA
PTUF -2
B. Public Hearing James Seubert
Variance 3988 Hayes Street N.E.
Case 19004 -11 Columbia Heights, Mn.
Mr. Seubert is requesting a seven (7) foot side yard variance to install a
24' x 36' detached garage at 3988 Hayes Street. The reason for the
request is to keep the driveway between the garages as long as possible.
The existing garage on the north side of the property is located three
feet from the side property line along 40th Avenue. The existing garage
on the south side of the property is located three feet from the side
property line.
The requested variance would allow a distance of 51 feet between the
garages. Without the variance, there would be 44 feet between garages.
RECOMMENDATION: Staff recommends denial of the request due to the lack of
a hardship as defined by the City Ordinance.
C. Site Plan Approval Kalina, Wills and Woods
Case 19004 -12 5" N:'. Slat 'Court
Columbia Heights, Mn.
Ron Kalina, representing Kalina, Wills and Woods, is requesting a Site
Plan approval to allow the 4t of'a two story office building at
31# t Court. The total square footage of the building is 9,452
square feet plus the basement.
The Parking Ordinance requires 40 parking spaces on the site based on net
floor area of the proposed building. The site plan indicates that 58
parking spaces would be provided in two parking lots. Due to the location
of the two parking lots, one on the north and one on the south, it is
Staff's opinion that the three driveway entrances /exits are acceptable.
Circulation throughout the parking lots is adequate.
The required landscape area is 560 square feet with the site plan
indicating approximately 7,800 square feet of landscaped area being
provided. Screening is being provided along the residential property to
the east by the installation of planting materials as shown on the site
plan.
Parking lot lighting and signage have not been addressed in the Site Plan.
Staff would recommend a plan be submitted addressing these two items.
Enclosed in your agenda packets are memos from the Fire Department and
Engineering Department addressing their concerns regarding the Site Plan
and proposed construction. The Traffic Commission will be reviewing the
site plan at their meeting of April 2, 1990.
RECOMMENDATION: Staff recommends approval of the Site Plan provided
requirements of the Engineering Department, Fire Department and Traffic
Commission are met and lighting and signage plans are submitted and
approved by Staff.
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HOUSING UPDATE
APRIL, 2002
BY: MARK NAGEL,
HOUSING ASSISTANT
1. The agreement with the Greater Metropolitan housing Corporation has been signed.
Columbia Heights residents have had access to the free services of the Housing
Resource Center since April lst. The attached brochure, which is available to
residents in the Community Development Department, explains more on the services.
2. Since it began in September 2000, the Columbia Heights Discount Loan Program for
housing rehab, administered by Community Revitalization Resources (CRR), has
closed 48 loans totaling $635,935 ( see attached breakdown). While there are a third
of the City's matching funds left, I don't expect them to last longer than this summer,
so the Board and Council will likely need to make a decision on continuing this
program before the end of the year.
3. Kristin DeGrande, Program Administrator for CRR, and I videotaped an inform-
ational program on housing rehab resources for Cable TV on Wednesday, April 10th
If you get a chance, please watch it. I hope to tape one on the Housing Resource
Center and on homebuying, as well.
4. As you can see from the attached memorandum, the Blue Earth Environmental Davis -
Bacon problem has been resolved. The demolition of 4150 Central Avenue did not
"trigger" the need for Davis -Bacon documentation, because no federal funds were
used in the construction of the 50 -unit building by Crestview ONDC I. As a result,
the company can now be paid the $5,000 in CDBG funds withheld due to assumed
Davis -Bacon violations.
5. The Metropolitan Council has come up with an interesting new housing program —
the "Smart Commute Mortgage ". They are attempting to promote Smart Growth
principles of affordable housing and reduced traffic congestion by linking housing
choice to public transit. The mortgages offer low downpayments and loan quali-
fication breaks, plus a 2 year free transit pass, for purchasing a home within a quarter
of a mile of any public transit route in the metro area. Clearly, nearly every home in
Columbia Heights could qualify for this program. Attached is more information.
6. The Cape Cod and Rambler Community Fix -up Fund income requirement has been
raised to $88,000, while the interest rate remains at the same low interest rate of 6 %.
If your income is less than $35,000 per year, the interest rate is 5 %. We hope this
will increase the number of loans this summer.
7. The interest rate for a home improvement loan through the MHFA Fix -up Fund
was recently lowered to 6.5 %, while the household income limit was raised to
$77,000 per year. The real plus for this program is that it can be used for improve-
ments owner- occupied duplexes, triplexes, and quads.
8. The Towle Report for 2002, the most comprehensive market report for the Twin
Cities area, notes that Anoka County has one of the lowest vacancy rates in the
Twin Cities for office space. Coupled with good commercial and industrial markets,
the EDA's RFQ may exceed expectations.
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Community Revitalization Resources wvr,%v.,nncee.orY
211 North I" Street, Suite 455. Minneapolis, Minnesota 55401 . Phone: (612) 335 -5880 . Fax: (612) 335 -2650
March 14, 2002
City of Columbia Heights
Tim Johnson
59040 1h Avenue N.E.
Columbia Heights, MN 55421
Dear Tim:
Enclosed you will find the most recent report summarizing all loan activity through
the Columbia Heights 6% discount program. This report is broken down into two
categories: one for loans closed through the Community Fix -up Fund and the other
through the Fix -up /Home Improvement Loan Fund. The end of the report highlights
total funds used and funds remaining to date. This version of the report includes all
activity through March 1, 2002.
Also, given that we've had such a mild winter and construction season is virtually upon
us, if you have any city newsletter or other form of media going out (i.e. water bill),
this would be a great opportunity to market the availability of this home improvement
loan program. I will be calling you within this next week to discuss some options for
marketing this program and others to property owners in Columbia Heights.
If you have any questions regarding this report or need any additional information,
please feel free to call me at 612- 335 -5881.
Sincerely,
Kristin DeGrande
CEE /CRR Program Administrator
12t r EOUAL HOUSING LENDER
A division of the Center for F,nerw and Environment • Equal Opportunity Employer
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ECONOMIC DEVELOPMENT AUTHORITY (EDA)
DATE: March 25, 2002
TO: Walt Fehst, City Manager
Randy Schumacher, Acting Community Development Director
FROM: Mark Nagel, Housing Assistant
RE: Blue Earth Environment Bill
The source of this bill goes back to the Summer of 1999, when Blue Earth Environmental
Company was the low bidder to demolish several buildings, including 4150 Central Avenue
NE. This building was demolished, as per contract, and the company submitted a bill for
payment of the work. On October 19, 1999, the company was told that $5,000 was being
withheld until damage to the fencing on the property adjacent to 4150 Central Avenue NE was
repaired. This was subsequently completed in 2000 and the company again requested payment
but this time, through a letter from their attorney dated December 6, 2000. The City continued
to withhold payment because Davis -Bacon paperwork had apparently, not been submitted by
the company. The issue has been at a standstill since January 2001 and was subsequently listed
as an audit finding in the 1999 Columbia Heights Financial Audit (see Attachment #1).
To resolve the stalemate, I began by reviewing all of the files related to this project and
found that the CDBG reimbursement request was missing. Anoka County still had the form
and in their files and faxed it to me. As you can see from Attachment #2, Mr. Hollman, the
City Planner at the time, along with Anoka County, made the determination on or before
December 28, 1999 that Davis -Bacon did not apply to this project. Since the use of federal
funds in a project over $2,000 is the usual "trigger" for Davis -Bacon regulations, I asked Judy
McIntyre, who handles Davis -Bacon regulations for HUD, to give me a confirmation that
documentation of wages and fringes was not necessary on this project.
As you can see from our E -mail correspondence in Attachment #3, demolition of 4150
Central Avenue NE would only be covered under Davis -Bacon if the 50 senior building, which
is currently under construction, was being financed, at least in part, by federal funds; therefore,
Davis -Bacon regulations did not need to be followed by the City on this project. For backup
purposes, I requested Ms. McIntyre to provide the citation from the Handbook — Attachment #4
contains the citation. Specifically, HUD Handbook 1344.1 REV -1, Section 7 -5, Page 7 -2
clearly confirms that Davis -Bacon documentation was unnecessary for this project, since the
construction of the senior building is being completed without the use of federal funds.
To sum, I would recommend that Blue Earth Environmental Company be paid the
$5,000 that has been owed to them for past 27 months, since Davis -Bacon documentation was
not required for this demolition project. Further, I would recommend that the city auditors
issue a correction of the financial audits in which this finding was contained, since they were
incorrect.
Please let me know if you have any questions
m
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 1999
1999 -3: Section 8 Rental Voucher and Certificate Programs, CFDA #14.855 and
14.857, direct from HUD
Condition and Criteria : The Section 8 cluster compliance requires that the utility rate
data be reviewed each year. If there is a rate change of 10 percent or more, the utility
allowance schedule should be revised. A utility rate survey and review has not been
performed since 1997.
Questioned Costs: None
Recommendation: A utility rate survey should be conducted in 2000 and the utility rate
allowance adjusted if appropriate.
19994: CDBG Program, CFDA No. 14.218, passed - through Anoka Countv
Criteria: The Davis -Bacon Act requires that all laborers who work on construction
contracts in excess of $2,000 be paid not less than the prevailing wage rates.
Condition: During 1999 the City entered into one contract that required compliance with
the provision of the Davis -Bacon Act. The City was unable to provide information to
verify compliance with Davis- Bacon.
Questioned Cost: Not determined.
Recommendation: The City should develop internal control procedures to ensure that all
construction projects that are covered by the Davis -Bacon Act use prevailing wage rates
and that this information is maintained by the City.
COUNTY OF ANOKA-
Office of County Administration
GOVERNMENT CENTER
2100 3rd Avenue • Anoka, Minnesota 55303 -2265
(763) 323 -6700
FAX: (763) 323 -5682
FAX TRANSMITTAL MEMO
Date: March 20, 2002
Number of Pages
Including Cover Sheet: 1
TO: Mark Nagel
Fax 763 - 706 -3672
Ref: Proiect 9830
FROM: Angela Stamper
Fax #: (763) 323 -6682 Phone #: (763) 323 -5714
E -Mail: angela.stamperoco.anoka.inn.us
MESSAGE:
Attached is the document that I have stating that Davis Bacon does not apply to this project. if you need
more information please call.
If problems are experienced in receiving this data, or If pages are incomplete, call
Operator: Cindy
Telephone * (763) 323 -5700
Affirmative Action /Equal Opportunity Employer TDDIM 763 - 323 -5289
HNOKH (CxJNT)' :ax:9- 763 - 323 -5682
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„a
Mark Nagel - Re: Blue Earth Environmental Page 1
From: <Judy_Mclntire @HUD.GOV>
To: <Mark. Nagel@ci.columbia-heights. mn. us>
Date: 3/19/02 2:26PM
Subject: Re: Blue Earth Environmental
It appears that the funding for the new construction did not trigger
Davis - Bacon; therefore, the demolition would not be covered by prevailing
wages either. The demolition would be covered only if there was subsequent
construction work that was subject to Davis - Bacon. (I don't think we
discussed the funding of the construction work when we spoke).
"Mark Nagel"
<Mark. Nagel @ ci.columbia -heig
hts.mn.us> cc:
Subject:
03/19/02 09:18 AM
Judy -
To: <Judy_Mclntire @HUD.GOV>
Re: Blue Earth Environmental
The senior building was funded through Multifamily Housing Revenue
Bonds and Notes totalling $5.31 million issued on behalf of Crestview
ONDC I for the construction - no city funding involved. The land
aquisition and relocation was done by the private company, who is
responsible for all bond payments. To my knowledge, Judy, the only CDBG
funds that were used were in the demolition. I hope this helps.
Mark Nagel
>>> <Judy_Mclntire @HUD.GOV> 03/18/02 08:24AM >>>
Mark - How was the 50 -unit Senior building funded? Judy
"Mark Nagel"
<Mark.Nagel @ci.columbia -heig To:
<Judy_Mclntire @HUD.GOV>
hts. mn. us> cc:
Subject:
Blue Earth Environmental
03/15/02 01:59 PM
Mark Nagel - Re: Blue Earth Environmental Page 2
Judy -
I have learned that the property after demolition was sold, along with
another 2 lots, for a 50 -unit senior building. The demolition was
done
on a commercial building located 4150 Central Avenue. I'm not sure
this
makes any difference in terms of Davis -Bacon requirements.
I have located the Wage Decision for the project dated 4/19/99, page
12, Laborers, Asbestos Abatement $16.56/hr. with $5.61 for fringes.
I've got names and adresses for 2 of the 5 workers of of the interview
sheets, but willnot write them a letter until you confirm that the
right
wage decision was approved. It does look like the hourly wage paid
was
OK, since the 2 interviewed received $20 /hour. I hope to locate the
names and adresses of the other 3 - if there were 3 others - shortly.
Thanks for your help and any other guidance you can give me based on
the
above would be appreciated.
Mark Nagel
`s% °` " *° U.S. Department of Housing and Urban Nvelopment
Minnesota State Office
220 Second Street South
a It Minneapolis, Minnesota 55=Gi -2153
��a•` htt p:!l www .hud.pov /localimin /minhome.html
Labor Relations Fax Cover Sheet
Date: 3 -?L # of Pages (including cover sheet):
From: Judv L. McIntire Office: Labor Relations, 5KS
Telephone #: 612/370 -3000 Extension 2284
Fax #: 612/370 -3218
To: it /, ,L� 4-4A, Office: A _._.
Telephone #:
Fax #: ?�a.. -7 DG, — 37 -1-- -- -
Subject:
F1344.1 REV -1
3 WORKING SUBCONTRACTORS
Contractual relationships between contractors and alleged
bcontractors (who perform mechanic's work) which are formed
fo the purpose of evading the application of prevailing wage
requi ments ae expressly prohibited and may provide a basis
for deb ment. Where there is any doubt as to the bona -fid
nature o self - employed subcontractor who has no other
5 �r employees, a following must be checked:
n� 1. Does the s ontractor'have a registered trad name and
is'there.a to ephone listing under that na
2. Does the subcont for have a license?
3. Does the subcontract have liabili insurance or a "
V subcontractor's bond?
X` 4. Federal Tax Identification ber.
Any of these criteria in con ncti with a signed contract
containing HUD Federal La Standar Provisions from each
such subcontractor shou be sufficien to establish that he
or she is a bona -fid ubcontractor. S h a subcontractor
will submit payrol indicating only that a /she is the owner,
the hours worke and the classification. phrase
"self - employe owner" shall be written under he name,
address, a Social Security Number (See Colum 1 on the
Optional orm WH -347). Nonbona -fide self employ
subco ractors must be carried as employees on the ayroll of
the ontractor who engaged him /her, and must be pai the
veiling wage rate for the classification of work p formed.
7 -4 CLEANING. Cleaning performed during construction is subject,
To prevailing wage provisions. In the absence of a specific
wage rate for the cleaning classification, or if DOL
disapproves a conformance request, the cleaners must be paid
the predetermined wage rate for laborers. Cleaning performed
after the completion of construction in order to prepare the
premises for occupancy which is not being done under the
construction contract is not subject to the prevailing wage
requirements.
7 -5 DEMOLITION. Demolition work, which is not related to
constru t on, is not subject to the prevailing wage
requirements of DBRA. For example, the demolition of a
7 -2
12/86
1344.1 REV-1
building because'such structure is no longer needed would not
in itself be a covered construction activity. However, where
an existing building is being demolished as a phase of a
construction project subject to OARA, the demolition would
also be covered, as in the case of demolition performed to
permit construction of a new building.
7 -6 DETERMINING PROPER CLASSIFICATIONS FOR VARIOUS WORK.
Questions as to the proper classi ication of a laborer or
mechanic for various types of work are resolved by making an
area practice determination. In determining the proper
classification for work performed on a project, it is
immaterial whether the contractor is union or nonunion.
On projects where the. prevailing wage rates for
classifications in question on the applicable wage decision
are based on negotiated rates, the prevailing practice
concerning work performed in those classifications is that
Practice observed on projects built by contractors who are
signatory to the collective bargaining agreements. Therefore,
unless there is a jurisdictional dispute between the crafts,
the duties ascribed to any job classification will be the same
as those outlined in the appropriate collective bargaining
agreements or, if the collective bargaining agreements are
silent on this issue, the local unions involved must be
consulted.
Conversely, in areas where open shop (nonunion) rates are
determined to prevail for the classifications in question,
those prevailing job practices fo.ilowed on projectt by open
shop contractors in the same area become area practice.
7 -7 HELPERS. The use of helpers who use tools in assisting
mec—' hanics and who are paid below the minimum rates for
mechanics is ordinarily not proper, since the apprentice or
trainee is recognized as the individual who is to perform the
less skilled craft work during his /her training period.
Helpers are not recognized on a DBRA contract unless they are
contained in the wage determination or a conformable rate is
approved by the Department of Labor.
7 -8 RELATIVES. There are no exceptions made in the enforcement of
DBR on the basis of family relationship for relatives who are
performing the work of laborers or mechanics. They must be
paid the prevailing wage rate for the classification of work
Performed and be Included on the certified payrolls.
7 -3
12/86
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m 0
PARKVIEW VILLA RESIDENT COUNCIL MEETING MINUTES APRIL 8, 2002
The meeting was called to order at 7:00 p.m.
Anita gave her Management Report:
• The Mobil Post Office service may be cut because of budget cust.
• Surge protection equipment will be installed soon for lightning strikes.
• Residents should not take parts out of the newspaper or cut coupons out.
• Residents should dispose of their trash during trash hours.
• Residents should do their laundry during laundry hours.
• Residents should not put personal notes or letters on the Bulletin Boards
• Business bulletins should not be put on the Bulletin Board but, should be put on the
bench.
Jackie Ovshak gave the Treasurers Report.
Marion Johnson gave the Entertainment Report about going to Old Country Buffet,
Wednesday, April 24th, 2002 for the April Birthdays. D. Powell, Bill and Anita, will be
driving.
Muriel McCellan gave the Sunshine Report. She sent a card and $5.00 to Wes Hallgren
and Teri Saice.
John Super welcomed new resident Jean Horshbuger.
Residents voted to send $250 check, to the Fire Department and Police Department for
their services to the community.
Helen Myhre, volunteered to help Katie with decorations.
Betty Fina drew Bev Layes name for $5, and Ryszard Lanouski drew Donna Pouliot's
name for the other $5.
The guest speaker for the meeting was Karen Moeller, Senior Coordinator. Karen spoke to
residents about all activities available to residents through the Senior Center.
The meeting was moved to adjourn and seconded at 8:20 p.m.
Respectfully Submitted,
Leo Mollenmaster
Resident Council Secretary 2002