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EDA AGN 03-19-02
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: www. ci. columbia-heights, mn. us EDA COMMISSIONMERS Robert W. Ruettimann Patricia Jindra Marlaine Szurek Julienne Wyckoff Gary L. Peterson Bruce Nawrocki Bobby Williams ECONOMIC DEVELOPMENT AUTHORITY March 19, 2002 The following is the Agenda for the regular meeting of the Columbia Heights Economic Development Authority (EDA) to be held at 6:30 p.m. on Tuesday, March 19, 2002, in the City Hall, Conference Room 1,590 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 only. 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 February 19, 2002. 2) Financial Report and Payment of Bills. a. Financial Statement for February, 2002. b. Payment of Bills for February, 2002. MOTION: Move to approve Resolution 2002-06, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statement for February, 2002 and approving payment of bills for the month of February, 2002. RECOGNITION, PROCLAMATIONS, PRESENTATIONS, GUESTS ITEMS FOR CONSIDERATION. 1. Approve Request for Qualifications relating to the Redevelopment of Industrial Zoning Properties- Randy Schumacher MOTION: Move to Approve the Request for Qualifications Relating to the Redevelopment of Industrial Zoning Properties. 2. Approve Action Steps for Implementation of the McComb Study- Mark Nagel MOTION: Move to Approve the Implementation Plan for the McComb Group, Ltd. Downtown Market Study. 3. Buginess Revolving Loan- Mark Nagel THE CITY OF COLUMBIA HEIGHT5 DOE5 NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER MOTION: move to establish a meeting date for the BRLF Loan Review Committee to review, compare, and revise the existing BRLF guidelines and submit the final draft to the EDA Board at a future meeting for further consideration. 4. Approve Application C1998-08, CDBG Housing Rehabilitation Program- Randy Schumachcr (Grant Documents will be handed out before thc meeting) MOTION: Move to approve the CDBG Housing Rehabilitation Deferred Grant/Loan Application for Grant #C 1998-08 in the amount of $16,678 for housing rehabilitation to Window America of Mn, Inc, Sela, Coys Masonry, Otogawa-Anschel General Contractors, 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. 5. Approve Application C1998-10, CDBG Housing Rehabilitation Program- Randy Schumacher. (Grant Documents will be handed out before thc meeting) MOTION: Move to approve the CDBG Housing Rehabilitation Deferred Grant/Loan Application for Grant #C1998-10 in the amount of $20,411 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 Ftmd 202-46350- 4600/3050. ADMINISTRATIVE REPORTS Report of the Acting Deputy Executive Director - Randy Schumacher. 1. Redevelopment Plan for 40th and Lookout Place 2. Lomianki Park Update 3. 3722 Central Avenue Update 4. Annual Report Report of the Executive Director - Walt Fehst. 1. Tour with Dunbar Development Corporation OTHER REPORTS (INFORMATION ONLY) 1. Housing Update 2. Resident Council Minutes ADJOURNMENT Walter R. Fehst, Executive Director H:\edaAgenda2002L3-19-2002 The mission of the Columbia 71eights Bconomic q)evelopment Authority is to provide financial and technical assistance andresources to residentia6 commercial, and industrial interests to promote health, safety, welfare, economic development and redevelopment. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OF FEBRUARY 19, 2002 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by Vice President, Jindra at 8:20 p.m., Tuesday, February 19, 2002, in the Parkview Villa Community Room B, 965 40th Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: Staff Present: Patricia Jindra, Marlaine Szurek, Gary Peterson, Julienne Wyckoff, Bruce Nawrocki, and Bobby Williams Robert Ruettimann Walt Fehst, Executive Director Randy Schumacher, Acting Community Development Director Mark Nagel, Housing Assistant Cheryl Bakken, Secretary CONSENT AGENDA Approval of Minutes Approve the Minutes o£ Regular Meeting held on January 15, 2002. Financial Report and Payment of Bills a. Financial Statement £or January, 2002. b. Payment of Bills for January, 2002. MOTION by Williams, second by Wyckoff, to approve Resolution 2002-02, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statement for January, 2002 and approving payment of bills for the month of January, 2002. All ayes. Motion Carried. ITEMS FOR CONSIDERATION Adopt Resolution 2002-03, Amending and Restating the EDA Bylaws. Schumacher indicated staff and Steve Bubul of Kennedy and Graven, Chartered, have updated the EDA Bylaws to meet the current status of the authority. $chumacher stated that a decision needed to be made to Article III- Meetings, Section Ion page 3, as to when and where the authority is to meet in the future. MOTION by Szurek, second by Williams, to amend page 3, Article Ill- Meetings, Section 1, Regular Meetings, whereby the first sentence should read: Monthly meetings will be held on the third Tuesday of the month at 6:30 p.m. at City Hall, with the exception of the months of January, April, July and October, where the meetings will be held in conjunction with the HRA at Parkview Villa and starting immediately following the HRA meeting. All ayes. Motion Carried. MOTION by Szurek, second by Williams, to Adopt Resolution 2002-03, a Resolution to Amend and Restate the Bylaws of the Columbia Heights Economic Development Authority. All ayes. Motion Carried. Economic Development Authority Meeting Minutes 3/4/02 Page 2 of 5 Adopt Resolution 2002-04, Approving and Ratifying the Terms of an lnterfund Loan Policy and Approving the Interfund Loan Implementation Memorandum in Connection with TIF District No. 1 (P3) Nagel stated this item should be tabled until a meeting is held with the Finance Director to discuss the issues. Adopt Resolution 2002-05, Approving and Rati[ving the Terms of $109,852 Internal Loan in Connection with TIF #4, Multi Plan Cargill District Schumacher indicated Shelly Eldridge, Ehlers & Associates reviewed the Interfund Loans that were noted in the Financial Statements for the TIF Districts. The 2001 law change ratifies any districts with a negative balance prior to August 1, 2001. Any expenditures that would increase the negative balance in a district must have an Interfund Loan (IFL) set up prior to the expenditures. The earlier districts for which the increments are paying the bonds, have had resolutions adopted to establish those loans and no further action is necessary. The MURP, K2 TIF District has a negative balance as of December 31, 2000 and the law requires a resolution ratifying the highest negative amount, which is $109,852, according to the 1998 Financial Statements. MOTION by Peterson, second by Wyckoff, to Adopt Resolution 2002-05, a Resolution Approving and Ratifying the terms of $109,852 Internal Loan and Memorandum in Connection with TIF #4, Multi Plan Cargill, MURP K2 Tax Increment Financing District; and furthermore, authorize the President and Executive Director to enter into an agreement for the same. Nawrocki asked where the $109,852funds went. Schumacher indicated that as Shelly Eldridge prepared the documents enclosed, he did not have the information, but could get it from the Finance Department for the Board. MOTION by Nawrocki, to table this item until the Board can determine where the $109,852 went. Motion Failed for Lack of a Second. Upon Vote of the Original Motion: Peterson- Aye, Nawrocki- Nay, Szurek- Aye, Williams- Aye, Wyckoff- Aye, Jindra- Aye. Motion Carried. Consideration of a Resolution to Recommend CiW Council Adopt a Redevelopment Process Relating to the Redevelopment of Industrial Properties Schumacher stated the number one Community Development Department Goal for 2002 relates to the development of industrial property in Columbia Heights. Staff met with representatives from the Beard Group, Dunbar Development, John Allen Industrial Equities, and Welsh Companies, and has meetings set up with GSR Development, Hartford Company, United Properties, and Opus. All have shown interest in redevelopment of the industrially zoned property in the southwest part of the City. In the meeting with Welsh Companies, possible approaches for handling the process of or redevelopment of the industrial area were discussed. One approach would be to gather more site information through the CDBG Grant and a Phase I Environmental Report before proceeding with a detailed Request for Proposal (RFP) and the other would focus on a Request for Qualifications (RFQ), selecting a firm to work immediately Economic Development Authority Meeting Minutes 3/4/02 Page 3 of 5 on the planning grant and Phase 1. Welsh Companies provided the attached listing of the pros and cons of both approaches. MOTION by Peterson, second by Szurek, to make Recommendation to City Council to Adopt a Resolution for Option A, to select a Development Consultant to assist the City/EDA in preparing a detailed RFP for developers seeking Redevelopment Proposals for designated Commercial and Industrial Redevelopment areas. All ayes. Motion Carried. Approve CommuniW Development Goals for 2002 Fehst stated that staff, the EDA Board and P & Z Chair, Tom Ramsdell met to establish Goals and Objectives for the Community Development Department for 2002. The City Council has previously approved the Top 10 Goals for 2002. Each of the Goals, have at least five objectives. Fehst listed the goals: 1)focus on redevelopment of the industrial zoned property; 2) evaluate development issues for Lomianki Park; 3) redevelopment of 417h and University; 4) to evaluate the options for Parkview Villa; 5) to improve the housing stock of Columbia Heights; 6) tax base increase; 7) redevelop 3 7th and Central; 8) redevelop Mady's Bowl site; 9) promotion of Columbia Heights; and 10) redevelop 40th and Jackson to Van Buren and redevelop Radiator Shop at 4201 Central. In order to accomplish the Goals, the first step would be to come up with some funds, by looking at their assets and how can we make a profit from them. As to Goal number four, evaluation of the options for Parkview Villa. Fehst stated that the rumor that the City is considering selling Parkview Villa as was discussed on Cable TV is true. One of the Councilmembers did say that would be a possible option for the South building only. However, that doesn't mean that a decision has been made to sell the building, but to consider the options. The South building is not government subsidized, but tenants have been charged lower than the standard market rates for apartments in the area. Renie Suj'ka, apartment 104, asked for clarification that they are considering the options for the South building only. Fehst stated that this was true. Resident, Dick Dustin indicated that he worked with Nawrocki years ago to build Parkview Villa for the seniors of Columbia Heights. Dustin expressed his concern that the Board wants to sell Parkview and use the money on the Industrial area. Seniors have moved into Parkview thinking they can spend the rest of their life there and would be they would be displaced. He also felt that Parkview is an asset to the City and should not be sold. Fehst stated there has been no decisions made to sell the building. They are not looking to change the building from a senior building, nor are they telling the seniors their rent is going up or they need to move out. Nawrocki indicated he was on the committee to build Parkview as Mr. Dustin stated. At that time an application was made for Federal Funding for the Parkview Villa North project and was turned down. He then went to Congressmen, Bill Frenzel, with the problem. Frenzel went to bat with HUD for the City and the funds were obtained. The South building was built to provide senior housing to the residents of Columbia Heights at a higher rate than the North building as it was not government subsidized, but still at a lower than market rate. The commitment was to make a senior building for housing Columbia Heights seniors, and freeing up the homes for Economic Development Authority Meeting Minutes 3/4/02 Page 4 of 5 younger families to move into. Nawrocki stated he strongly objects to the possibility of selling the building. Renie SujTca, apt. 104 asked for Mayor Peterson 's opinion. Peterson agreed with Nawrocki that there was a need for senior housing in the Community. However, if we want to improve our Community, and fill the needs for not only the seniors, but the young and middle aged families, we need to look at all our options. Wyckoff indicated that if the City decided to sell the South building, it would take years and if the building was sold with the intent that it wouldn't be used as a senior building, the seniors would be relocated. Fehst recommended Mr. Dustin be on the committee to explore Parkview Villa's options, or Goal number 4for the Community Development Department. MOTION by Szurek, second by Wyckoff, to approve the "Top 10" 2002 Goal Priorities for the Community Development Department. All ayes. Motion Carried. Resident, Harold Hoium, used abusive language towards Williams demanding a copy of his Revitalization Plan for the City by the next Council meeting, which he has been waiting for the last 14 months for. He then, directed his anger towards the rest of the Commissioners for not doing their jobs as City Councilmembers. Approve Application 1998-12, CDBG Housing Rehabilitation Program Schumacher indicated the Center for Energy and Environment has prepared a CDBG Housing Rehabilitation Deferred Grant for the property at 1032 Gould Avenue NE in the total amount of $18,475 with Norling Exteriors for replacing windows, doors, insulation, garage repair, and making health and safety improvements to the property. MOTION by Wyckoff, second by Szurek, to approve the CDBG Housing Rehabilitation Deferred Grant/Loan Application for Grant # 1998-12 in the amount of $18,475 for housing rehabilitation to Nofling Exteriors, 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 authorize all related expenses to be reimbursed from Fund 202-46350- 4600/3050. All ayes. Motion Carried. ADMINISTRATIVE REPORTS Update on Fiber Optics Schumacher indicated he included in the packet, the minutes of the Telecommunications Committee meeting and a memo from ~lean Kuehn, Special Projects Coordinator summarizing the meeting discussing the installation of Fiber Optics in Columbia Heights when Central Avenue is reconstructed this summer. At the Telecommunications Committee Meeting it was determined the cables are already in place on Central Avenue. The Telecommunications Committee recommended the City not get involved in the placement of Fiber Optics at this time. Economic Development Authority Meeting Minutes 3/4/02 Page 5 of 5 Update on Columbia Park Medical Group Parking Ramp Contract Schumacher indicated he would like to discuss this item at a future date. GMHC List of Homes Schumacher indicated that dennifer Bergmann, GMHC has provided the enclosed list of homes that GMHC has built in the area, as requested by the Board at their January meeting. OTHER REPORTS Resident Council Minutes for January and February, 2002 Jindra presented the Resident Council Minutes for the months of January and February. There were no corrections. Jindra asked for Board direction on if she should still be attending the Resident Council Meetings each month and taking minutes for the EDA as Parkview Villa is a function of the HRA. It was the consensus of the Board, that it wasn't necessary for Jindra to attend the meetings as Dennis Ecklund Jr. is on the Board as a representative of Parkview Villa Residents and he can provide the minutes to the Secretary for all future meetings. ADJOURNMENT Vice President Jindra, adjourned the meeting at 10:25 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:\EDAminutes2002\2-19-2002 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: March 19, 2002 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Randy Schumacher BY: DATE: March 12, 2002 BACKGROUND: The bound Financial Report for February 1, 2002 Check Listing (green sheets), and draft Resolution 2002-06 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 February 28, 2002. The Check History shows each fund with an expenditure history during the month of February, 2002. The total disbursements by fund are shown at the top of the listing. RECOMMENDATION: Staffwill 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 2002-06, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement for February, 2002 and Payment of Bills for the month of February, 2002. EDA ACTION: H: \Consent2002\Feb. FinRep2002 EDA RESOLUTION 2002-06 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR FEBRUARY, 2002 AND PAYMENT OF BILLS FOR THE MONTH OF FEBRUARY, 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 February, 2002 and the list of bills for the month of February, 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: SECONDED BY: AYES: NAY S: Robert Ruettimann, President Attest by: Cheryl Bakken, Secretary H;'~Resolu tions 2002L2002 -06 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: March 19, 2002 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: ~._ DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Approve Request for Qualifications for BY: Randy Schumacher BY: Industrial Center Redevelopment Project DATE: March 12, 2002 BACKGROUND: At the January 5th Goals Session for the Community Development Department, the City Council and EDA listed the redevelopment of industrial zoned properties as their number 1 priority for 2002. In February, the City Council and EDA decided that a Request for Developer Qualifications (RFQ) process would be the approach taken for redevelopment of the industrial area bounded approximately by Jefferson Street, 37th Avenue, University Avenue, and 39th Avenue/Lookout Place. As you may recall, the RFQ process is a faster, more streamlined approach than the RFP and will give the EDA a very good idea of what the private market is willing to build in a short timeframe. The attached draft of the RFQ is a combination of several examples from metro area cities, all of which had success with the RFQ process. If the RFQ is approved by the EDA and City Council, a cover letter and the appendices will be added. The RFQ will then be mailed to a list of interested developers. Once received, a checklist for evaluating each proposal will be written for decision-making purposes. It is hoped that the selection can be made by July. RECOMMENDATION: Staff recommends the EDA Board make recommendation to the City Council approval of the RFQ document, with any changes by Commissioners, for the Columbia Heights Industrial Center Redevelopment Project. RECOMMENDED MOTION: Move to recommend to the City Council approval of the RFQ document for the Columbia Heights Industrial Center Redevelopment Project. Attachments EDA ACTION: h:\consent Form2002~Approve RFQ for Industrial Area City of Columbia Heights Industrial Center Redevelopment Project Request for Qualifications 1. Project Context The City of Columbia Heights is initiating redevelopment of an industrial area generally bounded by 37th Avenue on the south, Jackson Street on the east, 39th Avenue and Lookout Place on the north and SR 47 on the west (see Appendix A for map). The City of Columbia Heights is seeking qualifications from interested development teams to acquire and redevelop the property described in Appendix A. It is the objective of the City of Columbia Heights to facilitate the redevelopment of an underutilized and blighted industrial area through a coordinated, collaborative public/private partnership approach. To this end, the City has received limited funding from Anoka County for planning the Industrial Center Redevelopment Project along with a selected development team. It should be noted that the project is not limited to redevelopment into industrial uses and will be based on the highest and best use of the property. It is anticipated that the final agreed upon plan for this Industrial area will serve as the gateway to the University Avenue to Anoka County Corridor of Columbia Heights - people will know that they have arrived in Columbia Heights. 2. Area Information 2.1 The area has views of downtown Minneapolis. 2.2 The area is zoned (I-1 & 1-2) industrial use. 2.3 21 parcels - 3 city-owned - housing about 20 companies 2.4 Not all companies may need to be relocated - some existing buildings may be incorporated into the project. 2.5 Environmental issues will likely need to be addressed. 2.6 Area is high profile with proximity to city's senior center, library, major park, downtown shopping, and bus routes. 2.7 City has the following studies available to the development teams: Downtown Market Study (McComb Group, Ltd); Downtown Master Plan (SRF Consulting Group); Demographic Profile (Demographic Technologies, Inc., Medtronics); Minnesota Design Team Plan; and the Life Cycle Housing Study. 3. Development Team Information Requested The information that is sought by the City is intended to assist in the evaluation of potential, redevelopment partners, but the City cannot guarantee that information submitted in response to the RFQ will remain private. This information is representative of the data that will be used to select the City's redevelopment partner, but additional information may be requested by the City during the process to assist in making the final selection. 3.1 Redevelopment Team Data 3.1.1 Organizational form 3.1.2 Contact person and availability 3.1.3 Staff members and availability 3.1.4 Developments underway, under consideration, or committed 3.1.5 Names of consultants and their anticipated project involvement 3.1.6 Redevelopment team's approach to public/private partnerships 3.2 Redevelopment Team Experience 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 Previous redevelopment experience, especially similar projects Demonstrated ability to work with relocating existing businesses Demonstrated ability to move from concept stage to construction completion within an established time frame Experience in the redevelopment process, including land use revisions, utilities, highway, environmental and other regulatory permitting and review agencies Describe your ability to establish effective working relationships with the City and community 3.3 Financial Capability 3.3.1 3.3.2 3.3.3 Financial capability, including ability to secure project financing, secure construction bonds, finance pre-development activities, and work with a variety of finance professionals. Financial planning capacity, including the ability to prepare project proformas and financing plans Demonstrated record of meeting project financial commitments 3.4 Design Experience 3.4.1 Design capacity, as evidenced by completed projects of similar size 3.4.2 Design flexibility, as demonstrated by the ability to adapt to local design criteria 3.4.3 Creativity, as evidenced by previous experience of redevelopment team to meet special redevelopment challenges with a unique approach e Redevelopment Team Selection Process 4.1 Respondents are requested to submit ten (10) copies of their proposal focusing on the above questions. 4.2 All RFQ packages are to be submitted to the City of Columbia Heights no later than 4:00 P.M., Tuesday, May 14, 2002. 4.3 All RFQ packages should be addressed: Industrial Center Redevelopment Center Redevelopment Project, Attention: Randy Schumacher, Acting Community Development Director, City of Columbia Heights, 590 40th Avenue N.E., Columbia Heights, MN 55421. 4.4 The City of Columbia Heights Economic Development Authority will review and interview the Redevelopment Team proposals and make a recommendation to the City Council by June 19, 2002. 4.5 The City of Columbia Heights City Council will consider the Economic Development Authority's recommendation and make a selection at their July 8, 2002 meeting. 4.6 The City and the selected Redevelopment Team will have 45 days to agree on a Letter of Understanding setting forth the scope of work, timeline, and division of costs. The City of Columbia Heights reserves the right to reject any and/or all RFQ's for the Industrial Center Redevelopment Project. 5. Staff Contact 5.1 All questions related to this RFQ may be addressed to Randy Schumacher, Acting Community Development Director, City of Columbia Heights at 763-706- 3675; FAX at 763-706-3671; and/or by E-mail: Randy. Schumacher~ci.columbia- heights.mn.us. 5.2 THANK YOU for your interest in our community and we look forward to receiving your proposal! COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: March 19, 2002 AGENDA SECTION: ORIGINATING EXECUTIVE NO: _~/ DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Approve McComb Study Implementation BY: Mark Nagel Plan DATE: March 12, 2002 BACKGROUND: As part of the 2002 Community Development Goals approved by the EDA Board of Commissioners on February 19th, Priority #7, Increase Tax Base, includes a step "to evaluate/implement recommendations from the McComb Study". Attached is a memorandum entitled "McComb Group, Ltd. Downtown Market Study Next Steps", which attempts to build on the "proactive approach" recommended by the study to attract and retain businesses along Central Avenue. Included in the memorandum is a Mission Statement and 6 Objectives with steps for implementation intended to put the results of the McComb Study into action with the ultimate goal of helping to increase tax base in Columbia Heights. RECOMMENDATION: Staff recommends Board approval of the Mission Statement and Objectives designed to implement the McComb Group, Ltd. Downtown Market Study. RECOMMENDED MOTION: Move to approve the Implementation Plan for the McComb Group, Ltd. Downtown Market Study. Attachments EDA ACTION: h:\consent Form2002\Approve McComb Study Implementation McCOMB GROUP, LTD. DOWNTOWN MARKET STUDY NEXT STEPS BY: Mark Nagel, Housing Assistant Downtown Columbia Heights anchors the southern end of the Central Avenue shopping area currently offering a "diversified mix of retail, office, and service uses". The McComb study notes that the downtown will begin a slow gravitation to more service and office uses during the next decade. The good news is that downtown businesses are growing, many faster than the metro average, with convenience and easy access the main reasons cited by shoppers for using these businesses. In fact, the there is room for another approximately 50,000 square feet of new retail, service, and/or office space in the downtown area; though, the study notes that current space "needs to be updated", because the age and condition of some buildings in the downtown is limiting the quality of the tenants. The McComb Study concluded that the downtown trade area has a significant representation of upper income households that are not well served by the existing retail and service establishments", as well as a higher than metro average senior population with good disposable incomes. Overall, the demographics suggest that the long-term economic outlook for the downtown is good. Both the McComb Study and the earlier SFR Consulting Group Downtown Master Plan recommend that the city take a "proactive approach" to attracting businesses to the downtown, as there has not been a well-defined one in the past. What follows is a structured approach combining a number of interrelated objectives into a plan of action that will position downtown as an attractive location for businesses. MISSION: To position downtown Columbia Heights as an attractive place to do business. OBJECTIVES: 1. To establish a Business Revolving Loan Fund to assist business and property owners in updating their buildings by 12/31/02. a. Revise BRLF guidelines b. Establish BRLF Loan Review Committee c. Meet with Finance Dept. to establish source of funds d. Develop marketing program to promote BRLF e. Evaluate success 2. To direct the BRLF Loan Review Committee to research, review, and establish other financial assistance programs to assist business and property owners in updating their buildings by 12/31/02. 3. To attract new retail, service, and office businesses to the downtown by 12/31/02 a. Determine status of Rainbow project and K-Mart closing. b. Compile a list of businesses in specific store categories defined by the McComb Study for contact by letter and phone. c. Work with property owners to compile a list of vacant downtown rental space to coordinate with space needed by new stores. d. Update list by computer continually. e. Determine need for consultant to assist with attraction efforts. 4. To develop a marketing plan to promote the City and downtown as it really is, rather than how it is currently perceived by the trade area, by 12/31/02. a. Develop by-laws for a City Promotion Committee. b. Formalize by City Council Resolution the by-laws. c. Recruit/appoint City Promotion Committee members. d. Host Brainstorming meetings designed to get input from businesses. e. Choose marketing consultant to use information from Brainstorming meetings and input from Committee to develop marketing plan. f. Implement marketing program. g. Evaluate success of marketing plan. 5. To identify and prioritize redevelopment sites along Central Avenue by 12/31/02. a. List redevelopment sites along Central Avenue at an EDA meeting. b. Create preferred redevelopment use for each identified site. c. Complete a RFP or RFQ process for each identified site. d. Negotiate a Development Agreement for each identified site. e. Implement Development Agreement. fi Complete redevelopment. 6. To improve the appearance of Central Avenue to create a better shopping environment by 12/31/02. a. Provide for improved appearance, accessibility, and security in parking ramps and private lots for Central Avenue shoppers. b. Create a Central Avenue streetscape plan. c. Upgrade city parks along Central Avenue. d. Improve maintenance activities along Central Avenue. e. Enhance pedestrian links between Central Avenue and the neighborhoods. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: March 19, 2002 AGENDA SECTION: ORIGINATING EXECUTIVE NO: "~ DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Business Revolving Loan Fund BY: Mark Nagel BY: DATE: March 12, 2002 BACKGROUND: With the sale of the Neilsen and Chartraw Home Mortgage Loans to Community Reinvestment Fund, Inc. and the early repayment of the Warrick Home Improvement Loan, in November of 2001, the EDA approved the formation of a three member BRLF Loan Review Committee to review the Bylaws, Plan and directed staff to draft revised materials for the BRLF Program. These draft revisions are now ready for review by the Committee made up of Chair Ruettiman, Councilmember Wyckoff, and Erv Bernard. I have attached both the revised version and the existing documents for the EDA and Committee's information and comparison. Basically, the revisions are primarily an update of the existing BRLF guidelines to account for legal, date, and other changes since the BRLF Loan Review Committee last met in 1996. The Committee is now ready to meet to review the guidelines, report back to the EDA Board, and "reactivate" the BRLF program. City Attorney Hoeft reviewed and compared the BRLF guidelines and also concurs that they are ready for review. RECOMMENDATION: Staff recommends setting a meeting of the BRLF Loan Review Committee to review, compare, and revise the existing BRLF guidelines and submit the final draft to the EDA Board at a future meeting for further consideration. RECOMMENDED MOTION: Move to establish a meeting date for the BRLF Loan Review Committee to review, compare, and revise the existing BRLF guidelines and submit the final draft to the EDA Board at a future meeting for further consideration. Attachments EDA ACTION: h: \consent Form2002\Business Revolving Loan Fund DRAFT ECONOMIC DEVELOPMENT AUTHORITY (EDA) OF COLUMBIA HEIGHTS, MN BUSINESS REVOLVING LOAN FUND LOAN REVIEW COMMITTEE BYLAWS/FUNCTIONS Updated 3- !-2002 Section 1. Name of Committee: The name of the committee shall be the "Business Revolving Loan Fund Loan Review Committee (BRLF Loan Review Committee). Hereinafter referred to as the "Committee". Section 2. Office of the Committee: The Committee shall have its office at the Economic Development Authority (EDA) office at 590 40th Avenue N.E., Columbia Heights, MN. Section 3. Powers of the Committee: The powers of the Committee shall be limited to review of applications for BRLF program loans and the making of recommendations to the EDA Board of Commissioners on which loan applicants should be granted loans under the BRLF program and in what priority. Also, see Section 10. Section 4. Members of the Committee: There shall be three members of the Committee. Members shall be appointed by the EDA Board of Commissioners. One at large member to be appointed who has financial expertise and are either residents, or business persons, in the City of Columbia Heights. One member shall be appointed from the EDA Board of Commissioners and one member from the City Council. All Committee members shall serve at the pleasure of the EDA Board of Commissioners. Section 5. Vacancies on Committee: Vacancies due to resignations, non-reappointment to the EDA Board, or non-re-election to City Council position shall be filled by appointments by the EDA Board of Commissioners. Section 6. Removal: Committee members may be removed from the Committee by the EDA Board of Commissioners for just cause (e.g. nonattendance at Committee meetings). Section 7. Officers: A Chair and Vice Chair shall be elected initially at the first meeting of the Committee. Then annually in May of each year (or the first meeting thereafter if no meeting is held in May) a Chair and Vice Chair shall be elected. The EDA shall provide a staff person to record the minutes of the meeting and maintain records for the Committee. Section 8. Meeting Dates/Places/Coordination: The Committee will meet as often as necessary to perform the functions of the Committee. The Community Development Director or his/her designee shall coordinate the dates, times and places for the meetings with the Chair of the Committee. Committee meeting notices are to be mailed by the EDA office to the home or office address of the Committee member at least three (3) days prior to the meeting time. Section 9. Quorum for Meetings: Two Committee members shall constitute a quorum for conducting business of the Committee. When a quorum is in attendance, action may be taken by the majority of the Committee members present. Section 10. Committee Functions: BRLF loan applications received from the participating banks will be received by the EDA staff, which will review and on a preliminary basis prioritize applications based on the priorities as listed in the BRLF Policy. These applications will be furnished to the Committee for review and development of a recommendation to the EDA Board of Commissioners as to which applications shall be funded based on the criteria in the BRLF Policy. Section 11. Amendments: These Bylaws may be amended by motion at a meeting of the Committee with the approval of at least a majority of the Committee members in office at any time. The Bylaws and any subsequent changes, must be approved by the EDA Board of Commissioners before they become effective. Adopted By: Date Adopted: Economic Development Authority BRLF Loan Review Committee Recording Secretary Section 1. Section 2. Section 3. Section 4, Section 5. Section 6. Section 7. HOUSING AND REDEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS. MINNESOTA BUSINESS REVOLVING LOAN FUND LOAN REVIEW COMMITTEE BYLAWS/FUNCTIONS April 18. 1991 Name of Committee: The name of the Committee shall De the "Business Revolving Loan Fund Loan Review Committee (BRLF Loan Review Committee)." Hereinafter referred to as the "Committee". Office of the Committee: Housing and Redevelopment N.E.. Columbia Heights, MN The Committee shall have its office at the Authority (HRA) Office at 590-40th Avenue 55421. Powers of the Committee: The Committee shall be consiaered as being the Revolving Loan Program Review Group (Loan Review Group) as reauired by the Plan for Business Revolving Loan Fund (BRLF) (hereinafter referred to as the BRLF Policy) as adopted by the HRA and City Council. The Committee shall oerform the functions as listed for the Loan Review Grouo in the BRLF Policy. The powers of the Committee shall be limited to review of aoolications for BRLF orogram loans and the making of recommeneations to' the HRA Board of Commissioners on which loan aoolicants shoulO De granteO loans under the BRLF program and in what oriority. Also, see Committee Functions below. Membe rs shall be the HRA aooointed business aooointed of the Committee: In accordance with the BRLF Policy, there five members of the Committee. Members shall be aooointed by Board of Commissioners with three at 'large members to be who have financial expertise and are either residents or oersons in the City of Columbia Heights. One member shall be from the HRA Board of Commissioners and one memOer from the City Council. Initially all Committee members shall be aooointed for a one year term. By May 1, 1992, the HRA Board of Commissioners will appoint Committee members to staggered terms of 1 to 3 years (2 members to be reappointed (or aooointed)) to 3 year terms, 2 to to 2 year terms and 1 to a 1 year term). After the initial aopointment orocess in 1992, then all future aooointments/reaopointments will be for 3 year terms. The HRA Commissioner and City Council member terms would automatically terminate as representatives from those entities if they are not reappointed or reelected to those offices. Vacancies on Committee: Vacancies due to resignations, non-reappoint- merit to HRA Board, non-re-election to City Council position, or eue to end of term as committee member shall be filed by appointments by the HRA Board of Commissioners. Removal: Board of meetings). Committee members may be removed from the Committee bv the HRA Commissioners for just cause (e.g. nonattendance at Committee Officers: A Chair and Vice Chair shall be elected initially at the first meeting of the Committee. Then annually in May of each year (or the first meeting thereafter if no meeting is held in May) a Chair and Vice Chair shall be elected. The HRA shall orovide a staff person to record the minutes of the meetinq and maintain records for the Committee. HRA BL1SINESS REVOLVING LOAN FUND LOAN REVIEW CONHITTEE BYLAWS/FUNCTIONS Page 2 Section 8. Section 9. Section 10. Section 11. Neetina Dates/P'laces/Coordination: The Commi=tee wii) meet as ofte. .s necessary to Der~orm the functions of the Committee. To She extent DOSSiD)e noon )uncheon meetings wil) be held. The mee=lngs will be held at locations in Columbia Heights as agreed UPOn Dy Committee members. The HRA Executive Director or his/her designee shall coordinate the dates, times and places for the meetings with ~ne Chair of the Committee. Committee meeting notices are to be mailed by the HRA office to the home or office address of She Committee member at least four days prior to the meeting time. Quorum for Meetings: Three Committee members shall constitute a Quorum for conducting business of the Committee. When a Quorum is in attendance, action may be taken by the Committee upon a vote of the majority of the Committee members present. Committee Functions: BRLF loan applications received from the participating banks will be received by the HRA staff which will review and on a preliminary basis prioritize aoolications based on the priorities as listed in the BRLF Policy. These applications will be furnished to the Committee for review and deve]ooment of a recommendation to the HRA Board of Commissioners as to which apDlica[ions shall be funded based on the criteria in the BRLF Policy, Amendments: These Bylaws may be amended by motion at a meeting of the Committee with the approval of at )east a majority of the Committee members in office at any time. These Bylaws, and any subseQ¢ ; changes, must be approved bv the HRA Board of Commissioners before t:~ey become effective. These Bylaws were adopted as the Bylaws of the Business Revolving Loan Fund Loan Review Committee on April 18. 1991. The HRA Board of Commissioners approved these Bylaws on Abril 29. 1991. The City Council approved these Bylaws on Hay 13, 1991. brlfapp/4/18/91 e PLAN FOR BUSINESS REVOLVING LOAN FUND (BRLF) OF THE ECONOMIC DEVELOPMENT AUTHORITY (EDA) FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA UPDATED 3-1-2002 PURPOSE The Plan provides for the use of funds for a Business Revolving Loan Fund (BRLF). The purpose of the Business Revolving Loan Fund (BRLF) is to provide a low interest loan program that will provide the capability and incentive for commercial and industrial businesses to meet the BRLF program goals. The BRLF goals are to assist in the economic development of the community by creating employment opportunities for Columbia Heights residents to encourage utilization of vacant or underutilized commercial/industrial sites/buildings; to encourage businesses to improve the appearance of their buildings and to help businesses to improve the market and service of their business to the community. These loans would be made pursuant to the powers granted in Minnesota Statutes, Sec. 469.012, Subd. (2), (12) and (24). The BRLF is contingent upon participation by one or more FDIC insured lenders, which agree to the terms of the Plan and provide at least fifty percent (50%) of the loan needs to borrowers. PROGRAM DURATION Loans may be made under this Plan to the extent that funds are available, as allocated to the fund by the City and/or EDA, so long as there are lenders participating and eligible loan recipients, unless the BRLF is terminated, upon written notice to all participating lenders of the EDA's intention to terminate the BRLF. If the BRLF is so terminated, such termination shall not affect the rights and obligations of the participating lenders nor those of the EDA with respect to loans outstanding on the effective date of such termination. To become a participating lender, an FDIC insured, financial institution, needs only provide a letter to the EDA of its agreement to the terms of this Plan. A participating lender may withdraw from the program at anytime, with respect to future loans, by giving written notice to the EDA of its intent to withdraw. CRITERIA A. Eligibility Businesses receiving loans through this program must: · In the event that the borrower moves his/her business out of the City of Columbia Heights, the lien will become due and payable. · Be a for-profit corporation, partnership, or sole proprietorship, tenant operators or contract for deed purchase. · Be a "small business" as defined in the regulations of the United States Small Business Administration. · Have ability to repay the loan and be an acceptable credit risk as determined by a bank. · Benefit a business located on property in Columbia Heights on which the business is a conforming use or a legal non-conforming use under the City Zoning Ordinance. · Upon completion of improvements, the applicants property must pass EDA or City of Columbia Heights health and safety inspections. B. Leveraging Private Investment In order to receive consideration for a BRLF Loan, the applicant must maximize the use of private lender financing. BRLF Loans must be matched on a 50% or more private lender to 50 % (or less) BRLF loan ratio. C. Contracting and Construction All applicants shall provide the EDA with information on the "Loan Application" detailing applicant's interest regarding rehabilitation of the building, giving permission for health and safety inspection and any other requested supplements necessary to achieve the approval of the project. A document (Scope of Work) must be submitted to the EDA and the bank detailing the work to be performed, estimated cost, specifically detailing how the health and safety work is to be satisfied and any other documentation necessary to achieve EDA approval of the project. Contractors and all Sub-contractors providing work under this program are to be licensed and must meet the insurance and bonding requirements of the bank. The contractor and/or sub-contractor is to be knowledgeable of and/or responsible for quality and workmanship, conducting proper business practices, be financially capable and demonstrate that they are an Equal Opportunity Employer. The quality and progress of the work is to be monitored throughout the term of the contract by the EDA, general contractor, and the bank. D. Maximum BRLF Loan No BRLF Loan made by the EDA shall exceed $25,000. Borrowers may apply two times for separate projects on the same building. _ E. Eligible Improvements Exterior · · · · Improvements All work on the front and sides of business buildings facing public streets Cleaning, painting and staining of exterior surfaces Masonry repairs Repairing or replacing of cornices, entrances, doors, windows, decorative details and awnings Removal, repair or replacement of signs Roofing Handicap access Streetscape costs not financed by special assessment Parking Lot Improvements, including lighting, landscaping, and blacktop Almost all fixed improvements including the repair and/or decoration of walls, ceilings, floors, lighting, windows, doors, entrances, electrical, plumbing, mechanical, air conditioning, architectural change, energy improvements, etc. F. lnelil~ible Costs The following costs are ineligible: · Refinancing of existing debts · Non-fixed improvements · Working capital · Inventory · Sweat Equity (payment for the applicant's own labor and performance for construction or improvements). G. Improvements Completed Prior to Loan Closing Such improvements are eligible if the following steps have been taken: · Applicant must have already filled out a loan application with EDA prior to the work proceeding. · Applicant must have a commitment letter from his/her Bank and the EDA confirming their financing and approval of the project. · Final bids will be required to assess the total EDA portion of the loan. Closing will not be set up until final bids have been received. · Applicant must agree to include all Health and Safety items in work to be done. If the above conditions have been met, the applicant may proceed using their own funds or interim financing from a bank. However, this is done at the applicant's and/or bank's own risk until the total scope of work has been approved by the EDA and the loan has been closed. H. PrioriW of Projects In the event requests for BRLF funds exceed the amount that is available, first priority shall be given to industrial or manufacturing uses. Second priority shall be given to research, technology, or clinical uses. Third priority shall be given to all other types of uses. In all of the priority categories, start up or expanding businesses locating in existing vacant commercial/industrial space in the City of Columbia Heights shall be funded prior to those not new or expanding. NATURE OF LOANS The Business Revolving Loan Fund may provide up to $25,000 per loan, provided that the loan recipient meets eligibility requirements and the fund amount is matched or exceeded by a participating lender. Interest on the portion of the loan borrowed from the fund shall be at an annual rate of two percent (2%) and on the fixed or variable rate loan portion borrowed from the participating lender (to be at least 50% of total loaned to e e applicant) shall not exceed the participating bank's prime rate plus two percent per annum. Other loan terms shall be determined by the participating lender, except that no repayment period shall exceed ten years and loans by the participating lender and the BRLF must be co-terminus. If the loan recipient's business is sold or liquidated, the balance of the loan would become due and payable. ORIGINATION FEE The applicant is required to pay an Origination Fee at the time of closing in the mount of $150 for the use of the 2% loan funds. It shall be the responsibility of the Participating bank to collect this fee at closing and remit it to the EDA. PARTICIPATING LENDERS Participating lenders shall pre-screen loan applications under this Plan to determine whether applications meet the Plan's eligibility requirements, and shall additionally apply their ordinary standards for commercial/industrial improvement loans to such applications. Participating lenders then shall provisionally approve or reject the application, provided that no application can be rejected for any unlawful reason. If an application is provisionally approved, it shall be forwarded to the EDA for further consideration of the BRLF portion of the loan. Participating lenders shall close the loans, obtaining properly executed security agreements, mortgages, promissory notes, and corporate borrowing authorization, as appropriate from loan recipients. At the closing, each loan recipient shall certify that such applicant has read, understands, and will comply with the requirements of this Plan. The participating lender shall provide to the loan recipient such disclosures as may be required by law. Monthly, the participating lender shall remit to the EDA Financial Coordinator at 590 40th Avenue N.E., Columbia Heights, Minnesota 55421 that portion of any loan recipient's monthly payment, which represents repayment of the BRLF portion of the principal and interest on the loan. The EDA shall not be a party to any of the loan documents, but participating lenders, in agreeing to the terms of the Plan, agree to act as the EDA's agent in receiving the EDA's portion of the principal and interest payments on any loan given and further agree to transmit that portion to the EDA, within at least 15 days of receipt. Participating lenders shall provide copies of all loan documents to the EDA along with a participation agreement showing the extent of BRLF participation in the loan. Loan documents shall reflect the entire amount of debt incurred, including the portion owed to the EDA, and in any foreclosure or other collection remedy employed by any participating lender, such lender shall use its best efforts to collect that portion of the debt owed to the EDA as well as that portion owed to the lender. Participating lenders shall have the sole responsibility of determining applicants' credit risk and filing any liens on collateral. BUSINESS REVOLVING LOAN FUND REVIEW COMMITTEE(BRLF REVIEW COMMITTEE) The EDA will appoint the Review Committee, which shall be composed of one representative from the EDA, one representative with financial expertise from the Columbia Heights business community, and one member of the Columbia Heights City Council. Loan applications, which have obtained preliminary approval from participating lenders, shall be forwarded to the Review Committee for its comments on eligibility for BRLF participation. In considering whether to recommend approval of an application or which application to give priority, in addition to all other criteria of this Plan, the Review Group may consider: (1) the date of the application; (2) the nature and extent of improvements leveraged by the loan fund; (3) the extent of rehabilitation; (4) the proposed use of existing vacant structure; and/or (5) the extent of new or expanded business and required job opportunities resulting from the proposed improvements. Within 15 days of receiving such application, the Review Committee shall forward its comments along with the application to the EDA Board of Commissioners for final approval. 8. APPROVAL BY EDA The EDA Board of Commissioners shall consider each application at its regularly scheduled (or special) meeting immediately following receipt of the application from the Review Group. The EDA Board of Commissioners shall approve the application for BRLF participation or reject such participation, stating the reasons why. Such rejection shall not preclude resubmission of the application with appropriate modifications. At the time of any application's approval by the EDA Board of Commissioners, an appropriate amount of money in the BRLF shall be reserved to cover the BRLF's anticipated participation in the loan or the EDA shall indicate the insufficient funds for such participation then exist, in which case the application shall be placed on a waiting list until such time as funds become available or the application is withdrawn. The EDA shall communicate its actions promptly to the participating lender. At the time prior to closing on a loan, the participating lender may disapprove an application, which had obtained preliminary approval, based upon changed circumstances or for any other reasonable cause. , 9. PAYMENT OF LOAN PROCEEDS Loan proceeds shall be paid to the participating lender and loan recipient. All invoices and other necessary documentation as related to the project costs shall be provided to the EDA prior to the disbursement of funds. BRLF loan recipients must close on the loan within 30 days of final approval by the EDA Board of Commissioners. If not closed within the 30-day period, the EDA reserves the right to cancel its commitment of funds and use those funds for another BRLF loan. Only those funds lent for the loan recipients project, activity or use stated in the applicant's loan application, may be collected by the lender prior to collection of the EDA's share of the total loan. 10. FORM OF APPLICATION The application shall be made on forms approved by the EDA and participating lenders, shall include information detailing the applicant's interest in restoring or maintaining the subject property and shall give permission for pre-inspection of the property. The application shall contain a proposal outlining the scope of work, which shall detail the work to be performed, estimated cost, completion date, amount of funds sought for eligible work, as well as any other documentation necessary to achieve any required building permit. Proposed contractors and subcontractors, who must be licensed and meet insurance and bonding requirements of the participating lenders, shall be identified. Approved by: Basic Policy: 1st Amendment: HRA Ci~ Council BRLF Loan Committee H:\BRLF~Ian3-1-2002 PL.AN FOR BUSINESS REVOLVING LO.4N ~3ND OF THE HOUSING AND REDEVELOP.~ENT AUTHORITY (H~A) FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA °om . I. P%~POSE The Plan provides initially for use of $45~000 of Community Development Block Grant (CDBG) funds (through Anoka CDBG Entitlement Program) and $4§~000 of HRA reserve funds, plus any other funds that the City of Columbia Heights (City) or Housing and Redevelopment Authority of Columbia Heights (HRA) contribute (or secure from grants) for a Business Revolving Loan Fund (BRLF). These loan funds are to be used to make loans for fixtures~ machinery, equipment, real estate acquisition, building front renovations~ and working capital. The BRLF shall have two categories - Anoka County CDBG funded and non-Anoka County CDBG funded with more restrictions uses of Anoka County CDBG funded loans. The purpose of the Business Revolving Loan Fund (BRLF) is to provide a low interest loan program that. will provide the capability and incentive for commercial and industrial businesses to meet the BRLF program goals. The BRLF goals are to assist in the economic development of the community by creating employment opportunities for low and moderate income family persons, to encourage utilization of vacant or underutilized commercial/industrial sites/buildings and to encourage businesses to improve the appearance of their buildings. These loans would be made pursuant to the powers granted in Minnesota Statutes, Sec. 469.012~ Subd. (2), (12) and (24). The BRLF is contingent upon participation by one or more FDIC insured lenders which agree to the terms of the Plan and provide at least fifty percent 50% of the loan needs to borrowers. II. PROGRAM DURATION Loans may be made under this Plan to the extent that funds are available, as allocated to the fund by the City and/or }IRA, so long as there are lenders participatihg and eligible loan recipients, unless the BRLF is terminated, upon written notice to all participating lenders of the HRA's intention to terminate the BRLF. If the BRLF is so terminated, such termination shall not affect the rights and obligations of the participating lenders nor those of the 9RA with respect to loans outstanding on the effective date of such termination. To become a participating lender, an FDIC insured financial institution need only provide a letter to the HRA Of its agreement to the terms of this Plan. A participating lender may withdraw from the program at any time, with respect to future loans, by giving written notice to the HRA of its intent to withdraw. FOR BUSINESS REVOLVING LO.4.N FUND (BRLF) PAGE 2. III. CRITERIA A. Eligibility Businesses receiving loans through this program must: - Be a for-profit corporation, partnership, or sole proprietorship. Be a "small business" as defined in the regulations of the United States Small Business Administration ($5 million in sales or less). - Have ability to repay the loan and be an acceptable credit risk as determined by a bank. Create a sufficient number and t,vpe of jobs that benefit low and moderate family income persons to justify participation in this pro~ram (on Anoka County CDBG funded loans only). Benefit a business located on property in Columbia Heights on which the business is a conforming use or a legal non-conforming use under the City Zoning Ordinance. B. Levera~in~ Private Investment In order to receive consideration for a BRLF Loan, the applicant must maximize the use of private lender financing. BRLF loans must be matched on a 50% or more private lender to 50% (or less) BRLF loan ratio. C. Creation of Permanent. Private Sector Jobs (Only Required on ACCDBG Funded Loans) Businesses receiving Anoka County CDBG funded BRLF loans will be required to provide new emplo,vment for Low and Moderate Income (L~I) household members (household income limits of $25,000 for t person, $28,880 for 2, $32,150 for 3, $35,700 for 4 at time of employment). On ACCDBG funded loans at least 51% of all new jobs created as a direct result of the loan must be filled by members of LMI households. At least one new job for a L~I household member must be created .for each $15,000 of ACCDBG funds received in the form of a BRLF loan. Only those jobs resulting from the infusion of BRLF funds that are created within one (1) year following the grant award will be considered. The jobs must be certain and achievable and not speculative.' Persons employed to meet the above criteria may be hired through the Anoka County Job Training Center. On loans funded with Anoka County CDBG funds, the loan agreement must stipulate that in the in the event the borrower (applicant) does not meet the requirement of this paragraph within one year, the full amount of the BRLF portion of the loan (plus interest on the loan term utilized at New York Prime rate at time of loan origination) shall become due and payable in full. PLAN FOR BUSINESS REVOLVING LO~N FUND (BRLF) PAGE D. Maximum BRLF Loan No BRLF loan made by the HRA shall exceed $25,000. E. Concurrent Loans A company shall not economic dewelopment time. The company calendar year. have more than $150,000 of BRLF or other City loan funds outstanding (unpaid) at any one may not obtain more than one BRLF loan in a F. Type of Machinery, Fixtures and Equipment The machinery, fixtures and equipment purchased with private lender and BRLF funds must be fixed assets with an expected life not less than the term of the loan. Loans for inventory will not be considered. The machinery, fixtures and equipment purchased must be placed in business facilities in Columbia Heights. Ge T.v~es of Property Any real property purchased with private lender and BRLF funding must be located in the City of Columbia Heights. He T..~es of Buildin~ Front Improvements Remodeling or replacing of existing building fronts with new modern efficient fronts. Types of Working Ca~ita! Loans Working capital loans may be approved for new businesses locating in existing vacant commercial/industrial space in Columbia Heights. J. Ineligible Costs The following costs are ineligible: - Refinancing of existing debts. - Non-fixed improvements. - Working capital on Anoka County CDBG funded loans only. - Inventory. - Sweat Equity (pa~vment for the applicant's own labor and performance for construction or improvements). PL.%N FOR BUSINESS REVOLVING LOAN FUND (BRLF) PAGE 4. K. Improvements Completed Prior to Loan Closin~ Such improvements are eligible if the following steps have been taken: - Applicant must have already filled out a loan application prior to the work proceeding. - Applicant must have a commitment letter from his/ her Bank and the HRA confirming their.financing and approval of the project. - Final bids will be required to assess the total HRA portion of the loan. Closing will not be set up until final bids have been received. If the above conditions have been met, the applicant ma7 proceed using their own funds or interim financing from a bank. However, this is done at the applicant's and/or bank's own risk until the total scope of work has been approved by the NRA and the loan has been closed. L. Priority of Projects In the event requests for BRLF funds exceed the amount tha~ is available, first priority shall be given to industrial or manufacturing uses. Second priority shall be given to research, technology, or clinical uses. Third priority shall be ~iven to al! other types of uses. In all of the priority categories, start up or expanding businesses locating in existing vacant commercial/industrial space in the City of Columbia Heights shall be funded prior to those not new or expanding. IV. NATURE OF LOANS The Business Revolving Loan Fund may provide up to $25,000.00 per loan, provided that the loan recipient meets eligibility requirements and the fund amount is matched or exceeded by a participating lender. Interest on the portion of the loan borrowed from the fund shall be at an annual rate of five percent (5%) and on the fixed rate loan portion borrowed from the participating lender (to be at least 50% of total loaned to applicant) shall not exceed the participating bank's index or prime rate plus two Percent per annum. Other loan terms shall be determined by the participating lender, except tha{ no repayment period shall exceed ten years and loans by the participating lender and the BRLF must be co-terminus. If the loan recipient's business is sold or liquidated, the balance of the loan would become due and payable. V. ORIGINATION FEE The applicant is required to pay an Origination Fee at the time of closing in the amount of $100 for the use of the 5% loan funds. It 'shall be the responsibility of the local bank to collect this fee at closing and remit it to the HRA. PLaN FOR BUSINESS REVOLVING LOAN FUND (BRLF) PAGE 5. VI. P.~uRTICIPATING LENDERS Participating lenders shall prescribe lo~n applications under this Plan to determine whether applications meet the Plan's eligibility requirements, and shall additionally apply their ordinary standards for commercial/industrial improvement/ development loans to such applications. Participatin~ lenders then shall provisionally approve or reject the application, provided that no application can be rejected for any unlawful reason. If an application is provisionally approved, it shall be forwarded to .the HRA for further consideration of the BRLF portion of the loan. Participating lenders shall close the loans, obtaining properly executed security agreements, mortgages, promissory notes, corporate borrowing authorization, as appropriate from loan recipients. At the closing, each loan recipient shall certify that such applicant has read, understands, and will comply with the requirements of this Plan. The participating lender shall provide to the loan recipient such disclosures as may be required by law. Monthly, the participating lender shall remit to the HRA Financial Coordinator at 590-40th Avenue N.E., Columbia Heights, MN 55421 that portion of any loan recipient's monthly payment which represents repayment of the BRLF portion of the principal and interest on the loan. The HRA shall not be a party to any of the loan documents but participating lenders, in agreeing to the terms of the Plan~ a~ree to act as the HRA's agent in receiving the HRA's portion of the principal and interest payments on any loan given and further agree to transmit that portion to the HRA, within at least 15 days of receipt. Participating lenders shall provide copies of all loan documents to the HRA along with a participation agreement showin~ the extent of BRLF participation in the loan. Loan documents shall reflect the entire amount of debt incurred, including the portion owed to the HRA, and in any foreclosure or other collection remedy employed by any participating lender, such lender shall use its best efforts to collect that portion of the debt owed to the HRA as well as that portion owed to the lender; however, any amount so collected shall be allocated first to interest due to the participating lender, then to principal due to the participating lender, then to reasonable allowable collection costs, and the remainder to the HRA. Participatin~ lenders shall have the sole responsibility of determining applicants' credit risk and filing any liens on collateral. VII. REVOLVING LOAN PROGRAM REVIEW GROUP (Review Group~ The HRA . will appoint the Review Group, which shall be composed of one representative from the HRA, three representatives with financial expertise from the Columbia Heights residents or business community~ and one member of the Columbia Heights City Council. Loan applications which have obtained preliminary approval from participating lenders shall be forwarded to the Review Group for its comments on eligibility for BRLF participation. In considering whether to recommend approval of an application or which application to give priority, in addition to all othercriteria of this Plan, the Review Group may consider: (1) the date of the application; (2) the nature and extent of improvements levera~ed by the loan fund; (31 the extent of rehabilitation; (4) the proposed use of existing vacant structure; and/or (5) the extent of new or expanded business and required job opportunities resulting from the proposed improvements. Within 30 days of receiving such application, the Review Group shall forward its comments along with the application to the HRA Board of Commissioners for final approval. PLAN FOR BUSINESS REVOLVING LOAN FUND (BRLF) PAGE 6. VIII. APPROVAL BY HRA The HRA Board of Commissioners shall consider each application at its regularly scheduled {or special.) meeting immediately following receipt of the application from the Review Group. The HRA Board of Commissioners shall approve the application for BRLF participation or reject such participation, stating the reasons why. Such rejection shall not preclude resubmission of the application with appropriate modifications. At the time of any application's approval by the HRA Board of Commissioners, an appropriate amount of money in the BRLF shall be reserved to cover the BRLF's anticipated participation in the loan or the HRA shall indicate that insufficient funds for such participation then exist, in which case the application shall be placed on a waiting list until such time as funds become available or the application is withdrawn. The HRA shall communicate its actions promptly to the participating lender. At any time prior to closing on a loan, the participating lender may disapprove an application which had obtained preliminary approval, based upon changed circumstances or for any other reasonable cause. Initial applications for loans under this program will be received between May 1 and July 1, 1991. These applications will then be processed in accordance with the above procedures. Future application periods wiii be set by HRA staff in coordination with participating lenders. IX. PAYMENT OF LOAN PROCEEDS Loan proceeds shall be paid to the participating lender and loan recipient. All invoices and other necessary'documentation as related to the project costs shall be provided to the Housing and Redevelopment Authority or its agent prior to the disbursement of funds. BRLF loan recipients must close on the loan within 30 days of final approval by the HRA Board of Commissioners. If not closed within the 30 day period the HRA reserves the right to cancel its commitment of funds and use those funds for another BRLF loan. Only those funds lent for the loan recipients project, activity or use stated in the applicant's loan application may be collected by the lender prior to collection of the HRA's sha~e of the total loan. X. FORM OF APPLICATION The application shall be made on forms approved by the HRA and participating lenders, shall include information detailing the applicant's loan request and granting permission for preinspection any real property involved in the loan. request. The application shall contain proposals from suppliers on any machinery and equipment to be purchased and formal accepted contingent offers on any real property proposed for purchase with BRLF funds. 4/23/91/loan Approved by: HRA City Council Basic Policy: Z-BS-91 3-11-91 1st Amendment: 4-18-9Z 4-Z2-91 BRLF Loan Committee Not Applicable 4-18-91 PARTICIPATION AGREEMENT Updated 3-1-2002 THIS AGREEMENT is made this day of ,2002, by and between with an office at .(the "Lender") and the Economic Development Authority in and for the City of Columbia Heights, Minnesota, with its principal office at 590 40th Avenue NE, Columbia Heights, MN 55421 (the "Participant"). WHEREAS, Participant has adopted a Plan for a Business Revolving Loan Fund (the "Plan") and the Lender is a qualified participating lender under the Plan; and WHEREAS, Participant has approved the application of (the "Borrower"), for participation in the Plan; and WHEREAS, Lender has received and reviewed a copy of the Plan and desires to participate as a Lender under the Plan; and WHEREAS, Lender holds a promissory note executed by the Borrower in the original principal amount of , dated (the "Note") which evidences a loan made by the Lender to the Borrower; and WHEREAS, the rate of interest on the Note is a blended rate of interest as defined in the Note and the Note provides for monthly payments of (principal and interest) and one final installment of all unpaid principal, together with accrued interest, as the terms of repayment; and WHEREAS, the blended rate of interest provides for the payment of interest at the rate of two percent (2.0%) per annum on that portion of the principal amount of the loan funded by Participant (as hereinafter detailed) at the rate of two percent (2.0%) per annum, and provides for the payment of interest on the balance of the loan at a rate not to exceed the Lender's Prime Rate plus two percent (2.0%) per annum, all in accordance with the Plan, and the terms and conditions herein comply in all respects with the other provisions of the Plan; and WHEREAS, Participant desires to acquire an interest in the Note as provided in the Plan; and WHEREAS, Lender desires to have Participant acquire certain interest in the Note without recourse to Lender pursuant to the terms of this Participation Agreement; NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises herein contained, the parties hereto agree as follows: SECTION 1. PARTICIPATION Upon the payment by Participant of the sum of ($ ), Participation shall receive a % interest in the principal amount of the Note and interest on such principal amount of the rate of two percent (2.0%) per annum (the "Participation"), and Lender shall issue a Participation Certificate to Participant evidencing the amount of this Participation. The $ advanced by the Lender to the Borrower under the Note has been recorded by the Lender in an account which will reflect the aggregate amount outstanding at any time, all repayments of principal by Borrower, and all interest billed to and paid by the Borrower (the "Loan Account"). Balances in the Loan Account will fluctuate from time to time based on the amount of repayments made by Borrowers. SECTION 2. ACCOUNTING: RECORDS: TRANSFER INTEREST Lender shall render to Participant after the end of each calendar month during which any Participation is outstanding to Participant, copies of the accountings rendered by Lender to the Borrower and a summary statement of the Loan Account. Participant shall not be permitted to assign or transfer all or any part of its Participation. SECTION 3. PAYMENT OF PARTICIPANT'S SHARE OF INSTALLMENT PAYMENTS Lender shall, within fifteen (15) days after receipt from Borrower of each monthly installment payment under the Note, pay therefrom to Participant an amount equal to the total off (a) its percentage interest in the principal; plus (b) interest on Participant's percentage share of principal at the rate of two percent (2.0%) per annum. Lender shall not charge any fee for its service in handling the receipt and disbursements of interest charges and in the general management of the Note. SECTION 4. ENFORCEMENT Lender shall have the exclusive right in its name alone to exercise and enforce all rights and privileges accruing to Lender by reason of the Note and any other agreements, guarantees or claims given to Lender in connection with the Note, all in Lender's sole discretion and in the exercise of its business judgment. Lender shall handle all actions relating to the Note, in accordance with its usual practice in the ordinary course of business and shall adhere to the same standard of conduct, as would be the case if the loan had been made exclusively by Lender. Lender has not made and does not make any warranties, express or implied, nor does it assume any liability to Participant with respect to: (a) the present or future solvency or financial worth of the Borrower or (b) the enforcement, validity, value or collectability of the loan made to Borrower. SECTION 5. NON-INSTALLMENT PAYMENTS After, any non-payment or other event of default under the Note, any sums recovered by Lender in enforcement of the Note shall be applied as follows: a. To payment of interest on the proportional amount of principal owing to Lender at the Lender's Rate of Interest as defined in the Note; then b. To payment of the proportional amount of principal owing to Lender; then c. To all reasonable costs of collection, including attorney fees; and d. To payment of interest on the proportional amount of principal owing to Participant at the rate of two percent (2.0%) per annum; then e. To payment of the proportional amount of principal owing to Participant. SECTION 6. RECOVERY OF PAYMENTS In the event Lender or Participant shall be sued or threatened with suit by any receiver or trustee in bankruptcy on account of any alleged preference or voidable transfer alleged to have been received by either Lender or Participant as the result of any transaction in respect of which Participant shall have participated with Lender hereunder, or in the event that any actions, claim or demand of any kind shall be asserted against either Lender or Participant, directly or indirectly relating to such transactions, then in such event, any money paid in satisfaction, or compromise of such suit, action or demand and any expenses, costs and attorney fees paid or incurred in connection therewith, shall be shared by Participant and Lender pro rata in accordance with the percentage of Participation in the Loan Account at the time of the commencement of any of the foregoing actions. SECTION 7. COMPLIANCE WITH PLAN The Lender has received and reviewed a copy of the Plan and hereby agrees to its terms, including all responsibilities assigned therein to participating Lenders. SECTION 8. MISCELLANEOUS Except as stated in this paragraph, this Participation Agreement constitutes the entire agreement between Lender and Participant and can be changed only by a writing signed by both parties and shall bind and benefit Lender and Participant and their respecti.ve successors and assigns. The failure or delay by the Lender to exercise any right hereunder shall not constitute a waiver thereof or bar Lender from exercising any of its right at any time. The validity, interpretation and enforcement of this Participation Agreement, shall be governed by the laws of the State of Minnesota. This Agreement shall be subject to and shall be interpreted in accordance with the terms of the Plan. LENDER: PARTICIPANT: By: By: Its: Its: BUSINESS REVOLVING LOAN FUND PARTICIPATION AGREEMENT COPY WHEREAS, on , 19 , the su/~ of (the "loan") to (the "Private Lender") has loaned Dollars ($.. ) (the "Borrower',) for financing improvements to an existing business located (or business to be located) at (the "Project") in the City of Columbia Heights (the "City"); and WHEREAS, on even date herewith the Economic Development Authority of Columbia Heights, MN (the "EDA") has acquired a participation in the Loan sum of Dollars ($ ), bearing interest at the rate of five percent (5%) per annum, evidenced by Note dated due until paid (the Private Lender and EDA being hereafter referred to as the "Participants"); and WHEREAS, the Private Lender agrees, during the term of this Participa- tion Agreement (the "Agreement"), to act as servicer on behalf of itself and the EDA in the receipt and disbursement of all payments to and from the Borrower and in exercising any remedies available against the Borrower with respect to security for the payment of all amounts due under the Loan. NOW THEREFORE, in consideration of the premises and the mutual benefits to be derived therefrom, it is hereby agreed as follows: The Private Lender shall have a percent ( %) interest in the Loan and the EDA shall have a percent (__%) interest in the Loan, provided that the EDA's interest in the Loan shall be, as provided herein, subordinate to the Private Lender'S interest in the Loan. The right of the EDA to any and all security for the repayment of the Loan shall be subordinate to the right of the Private Lender to receive extent of .the Lender's interest in the Loan. The right of the EDA to receive any repayments from the monthly payments made by the Borrower shall be subordi- nate to the right of the Private Lender to receive all such monthly payments made by the Borrower, as needed to pay the private lender the amount required by the attached Installment Promissory Note. Page 1 of 4 BRLF PARTICIPATION AGREEMENT So long as the ..Borrower shall not be in default of its obligation to repay the loan, or of any of its obligations under any documents or instruments incidental thereto (any such default referred to herein as an "Event of Default"), the Private Lender, upon receipt of any monthly payment or any prepayment by the Borrower, shall remit to the EDA that portion of said monthly payment or prepayment which represents the EDA's pro rata share of the principal amount loaned by the Private Lender. In no event shall the Private Lender withhold from the EDA its pro rata share of monthly payments or prepay- ments received by the Private Leqder, except as provided in the Event of Default as described herein. In receipt and' disbursement of any sums covered by this Section, the Private Lender will exercise the same care as would be exercised in the handling of loans for its own account. After an Event of Default shall have occurred and after the required notice of said default and Borrower's failure to cure said default, then, upon receipt of any monthly payments from the Borrower, or upon receipt of any other payment from any source by or on behalf of the Borrower, the Private Lender shall apply the entire amount of such payment first to pay all costs and expenses incurred by the Private Lender in connection with the enforcement of foreclosure of any note, mortgage or other document securing the repayment of the Loan, second to pay interest then due on the Private Lender's interest in the Loan, and then shall apply the remaining amount of such pay- ment as payment or prepayment of the outstanding principal amount of the Private Lender's interest in the Loan until all interest due to the Private Lender and the entire principal amount of the Private Lender's interest in the Loan have been paid in full, and shall thereafter remit to the EDA the remainder of such amounts as a payment or prepayment of the principal amount of and interest on the EDA's interest in the Loan. Any Loan repayment received directly from the Borrower by the EDA shall be remitted to the Private Lender. The Private Lender shall promptly advise the EDA, in writing, of any default by the Borrower in repaying any amounts due under the terms of the Loan or under any mortgage, agreement, instrument or document securing repayment of the Loan. Any mortgage, agreement, instrument or other document securing repayment of the Loan shall be foreclosed or enforced only upon the written consent of both the EDA and the Private Lender, such consent not to be unreasonably withheld. In no case shall such consent from the EDA be withheld for more than six (6) consecutive months after default. In foreclosing any mortgage or enforcing any remedy under any other agreement, instrument or document securing repayment of the Loan, the Private Lender shall be entitled to receive all amounts derived from such foreclosure or enforcement until the Private Lender has recovered all amounts due to it with respect to its interest in the Loan and its costs incurred in such foreClosure or enforcement. Thereafter, the Private Lender shall remit to the EDA all remaining amounts derived from such foreclosure enforcement. Page 2 of 4 BRLF PARTICIPATION AGREEMENT 10. 11. 12. 13. So long as this Participation Agreement is in force and effect, the Private Lender shall, within thirty (30) days of the annual anniversary date of this Participation Agreement, furnish the EDA with an annual report summarizing the monthly payments or other payments with respect to the Loan received by the Private Lender, the amounts paid as interest on the Loan, the payments and prepayments of the principal amount of the Loan, any foreclosure actions or enforcement proceedings with respect to any security for the repayment of the Loan and any amounts derived therefrom, together with an accounting of the applications of such amounts. This Participation Agreement incorporates the terms of all mortgages, agreements, instruments or documents securing the repayment of the Loan, if any, which are attached hereto as Exhibits, and are incorporated by reference herein. This Participation Agreement shall continue in full force and effect until all amounts payable under the Loan have been paid in full. The Private Lender shall not execute a satisfaction of any mortgage, agreement, or document securing the repayment of the Loan without the prior written consent of the EDA. The Private Lender is hereby granted, subject to paragraphs 7 and 11, the power and authority to administer, manage and service the Loan; to waive the performance of obligations of the Borrower; to excuse the nonoccurrence of conditions; to exercise collection rights with respect to any collateral or to accept a transfer in lieu of foreclosure; to collect and receive any and all payments, collections and proceeds of collateral made or delivered by or for the account of the Borrower and at its sole discretion to release such payments, collections and proceeds to the Borrower or apply the same to the payment of indebtedness; to enforce rights against third parties; to manage and control proceedings in the Borrower's bankruptcy; and otherwise to do and refrain from doing any and all acts and things which the Private Lender would be required or permitted to do or refrain from doing in connection with the Loan if it had retained its entire interest as lender in the Loan, but acting on behalf of the EDA and all other participants, if any. Neither the Private Lender nor any of its directors, officers, employees or agents shall be liable for any action taken or omitted by the Private Lender or any of them except in the case of gross negligence or willful misconduct. Page 3 of 4 BRLF PARTICIPATION AGREEMENT 14. Neither the Pri~ate Lender nor the EDA (i) shall be liable or responsible for any representations or warranties made by, or for obligations binding upon or assumed by, the Borrower or anyone else; o~ (ii) makes any representation or warranty as to the genuineness, legality, validity, perfection, priority, enforceability or sufficiency of the Loan; or of any security interests, mortgage liens, guaranties, or other collateral rights and remedies securing the Loan; or of any of the documents evidencing the Loan or any other agreement made or instrument, document or writing issued thereunder in connection therewith, or as a result thereof; or (iii) makes any representation or warranty as to the borrower, as to any financial statements or collateral reports submitted by or for the Borrower, as to any risk of loss with respect to the Loan, or as to any matter whatsoever; or (iv) shall have any right or recourse against the other party hereto. Private Lender By. Authorized Official Its: Date: Borrower Economic Development Authority of Columbia Heights, Minnesota 590 40th Avenue N.E. Columbia Heights, Minnesota 55421 By Authorized Official By Chair Its: Date: Date: Executive Director BRLF Page ~ of 4 For value recewed. :ne unaerslgnecl (if more than one. io~ntly anti severally) prom,se(s) to pay to the orcler (the 'BanK*). at its of/ice in Minnesota. or at any other ~lace aesignatect at ~y time in wn~ng ~ the ~olaer ~ar~f. in la~t ~ of · e Umt~ ~tates of Amenc~ t~e p~nc=p~ ~um of t~e~er w~th interest (~lat~ ~ the ~is of ~ ~a~ ela=s~ in a ~ay ye~) on ~e ~pm~ onn~om her~t, f~ me arm ner~f un~i this ~te is ~l~ pma ~ ~e tOll~ng ~te. ~ ~ ~nual ~e of ~ ava~Ole ~nu~ rate ~ual to ~ aOove ~e B~ Rate [~e :e~ '~e Rme' means ~e rate pi inmrast astaOli~e~ ~y from tn"ne to time as its '~ase* or *:nme" rate): ancta rate of interest mat snail never Oe less tha~ %. a vanaOle annual rate -,~lual tn % in excess of [Discount Rate (the ten'n *Oiscount Rate' means the discount rate on clay commero;al ORDer in effect l'rom time to time at the Minneapolis FeDeral Reserve ] pitier If this note evidences a vanaole rate loan. :he following provisions shall alSO apply: 1. [f :ne $100.0C0 exemption to the usury law tides not apply ancl :he t:x~r- rower is not a comorauon. :ne annum rate of interest nerecn snail never exceect [] %. [] a rate that is % in excess pt the Oiscount Rate. 2. ,"ms note snail bear tl~e same rate of interest af~er it becomes Rue as was in ef/ec: on the Oue Pate unless :ne $100.000 exemption to the usury law exemption to ~e usury law applies ;o the loan evictencect Oy tn,s note ancl ~ifferent arrangements ~ave been macle Oetween :he Oan~ ancl the unclersigned. The rate of interest snail initially {ae ctetermined as of the clare nereo! an(3 sr~all t~ereafter 13e acljustecl. [] <aa~ly on the same clay U'te Inclex Rate changes): [] claily on ~e clay following the clay the Intex Rate changes) [] monthly, tl~e rate for any given mon~ clepencling on the Inctex Rate for the last (3ay of the immeclia[ely prececling month; [] monthly, on ~e clay of each caleno clar month w,n t~e rate oemg ~aetermmect iaasecl on ~le Inaex Rate in e~fec: on me clay of change, o.r ~ as follows: Oue Oate Note No. NO. This Note renews Note Oatecl ~9 ~ 19~ The unclersigned promise(s) to pay principal an~ interest as follows: [] Principal and interest s~all I=e patti :ogel~er in consecutive installments of $ eec 13e~ginning 19 ancl on the same clay of each ~erealter until 19 when the entire unpa~ct pnn¢iOal ancl accrued ancl unoa~cl interest on snail become clue ancl ~ayat~le. ~.ac~ such inslailment when snail be appliecl first in 13ayment of accnJecl interest a~ct therect s~all be appliec~ in rectuctIon of Onnc=pal. [] Pnncipal only snail be oaicl tn consecutive payments of $ same clay pi each 19 . 19 ~,ach, beginn, :nerealter u, ·wnen · entire unpaicl .onnc:pal snaJI oecome clue a~c~ oayaole. Interest tt accrues form time tO time is oayaJale [] on ~e same clays as pnncic ] as follows: ancl also on clemand. Principal plus interest or [] principal ancl interest snail ~ae 13aicl in accorclance witl~ the following sc~eclule: [] Monthly [] $ Starting Number $ Starting NumPer $ Starting NumOer. $ 'Starting Numoer $ Starting NumPer .... Unless Demand is made or until when :~e Entire unpaid principal snail become clue and payable. AS usecl herein. *Due Date' means the ~hal matumY cate her~ (whether it Pe the statect final matudty <:ate or such eanier clare by reason acceleration). The term 'intex Rate' means the =-ase Rate. the Oiscount Rate. or the rate clescnbecl in ~e 'Diner' ~aragrapn. as aopticaole. [] This note is not secured. [] ti'tis Note is securec~ by security agreement(s) clatecl 19 and real estate mortgage ctatect [] ~is Note is also subject, to the terms anct conditions of a loan agreement clated [] this Note is guaranteed by a separate Guaranty .19__ and Aclclress: Purpose of Loan 'q ESE~ 1186 THIS NOTE IS SUE~JECT TO THE AOOITIONAL PROVISIONS SET FORTH ON THE REVERSE SIOE HEREOF. Maker: X X X X X far -:.. r~e~c ~t~s] ~ne ~ue an~ oucc~ai ~avm~ ~t ~e ~t~,fl ,~fe (anc all r~als RATE CHANGE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORIT3~ (EDA) BUSINESS REVOLVING LOAN PROGRAM GUIDELINE~ig ~ '- REVISED 3-1-2002 The purpose of the fund is to provide financial assistance to retail, service and light manufacturing businesses through joint private sector and public action. The Columbia Heights Economic Development Authority (EDA) has established a City- wide, low interest, longer term loan program for the following purposes: To improve the capability and incentive for owners and tenants to upgrade the appearance, structural condition and operating efficiency of their place of business. · To help businesses improve their market and service of their business to the community. · To retain and expand job opportunities for Columbia Heights residents. · To encourage utilization of vacant and underutilized commercial/industrial buildings/sites. The Columbia Heights Economic Development Authority (EDA) in reviewing applications, will also consider the following: · The date of the application. The extent of the improvements leveraged by revolving loan fimds. · The extent of new or expanded business and job opportunities. · The extent of rehabilitation and use of existing vacant structures. How the Program Works Borrower prepares a loan request to cover the cost of commercial/industrial property rehabilitation. Borrower applies to a private lender and the Columbia Heights Economic Development Authority (EDA). If approved by both, the lender provides financing for their part of the project cost at their market rate and the Columbia Heights Economic Development Authority provides up to $25,000 per loan at 2% interest. The amount of the Columbia Heights Economic Development Authority loan must be matched or exceeded by a participating lender. Borrowers may apply two times for separate projects. Borrowers must make application with a lender-commitment letter to the Columbia Heights Economic Development Authority before any work is started. Term on the loan is up to 10 years and is set by the private lender based on the borrower's ability to pay and the use of the funds. The private lender also takes primary responsibility for the credit analysis and underwriting. How long does the process take? From the time the EDA receives application and a lender commitment letter, preliminary approval takes approximately two weeks. Alter preliminary approval, another six weeks should be allowed to request a check for the closing. Normally, the borrower is busy putting together final bids and estimates during this time. The EDA cannot finance any work started prior to the loan closing date. If extenuating circumstances arise that require work to be started before loan closing, you must request a waiver in writing from the EDA to approve the project start. In no case can work be financed which was performed prior to receipt of an application. Eligible Applicants Businesses receiving loans through this program must: · In the event that the borrower moves his/her business out of the City of Columbia Heights, the loan will become due and payable. · Be a for-profit corporation, partnership, or sole proprietorship, tenant operators or contract for deal purchases. · Be a "small business" as defined in the regulations of the United States Small Business Administration. · Have ability to repay the loan and be an acceptable credit risk as determined by a bank. · Benefit a business located on property in Columbia Heights on which the business is a conforming use or a legal non-conforming use under the City Zoning Ordinance. · Upon completion of improvements, the applicants property must pass a Columbia Heights EDA health and safety inspection. · The applicant must use licensed contractors and must meet the insurance and bonding requirements of the bank. In addition, all rehab work must meet Columbia Heights City codes and appropriate permits must be pulled for such work. Eligible Improvements Exterior Improvements · All work on the front and sides of business buildings facing public streets · Cleaning, painting and staining of exterior surfaces · Masonry repairs · Repairing or replacing of cornices, entrances, doors, windows, decorative details and awnings · Removal, repair, or replacement of signs · Roofing · Handicap access · Streetscape costs not financed by special assessment · Parking Lot Improvements, including lighting, landscaping, and blacktop Exterior Improvements Almost all fixed improvements including the repair and/or decoration of walls, ceilings, floors, lighting, windows, doors, entrances, electrical, plumbing, mechanical, air conditioning, architectural change, energy improvements, etc. The following costs are ineligible: · Equipment Refinancing of existing debts · Non-fixed improvements · Working capital on Anoka County CDBG funded loans only · Inventory · Sweat Equity (payment for the applicant's own labor and performance for construction or improvements). Any Fees Involved? The EDA charges $150 as an origination fee, due at the time of closing. Fees charged by the Bank vary with each banks' policy. 10% of the EDA loan will be held until a final inspection is complete. Need more information? This packet provides a summary of the guidelines and process involved in the Columbia Heights Economic Development Authority Business Revolving Loan Fund Program. If you would like further information or have any questions please contact: Columbia Heights Economic Development Authority 590 40th Avenue NE Columbia Heights, MN 55421 Phone (763) 706-3670 Fax (763) 706-3671 H:\LoansX2% BRLF Guidelines COLUMBIA HEIGHTS BUSINESS REVOLVING LOAN FUND (BRLF) PROGRAM LOAN APPLICATION FORM Personal Information Applicants Name: Name of Business: Business Address: Home Address: Updated 3-1-2002 Home Phone #: Federal I.D. #: Brief Description of Business: Business Phone #: Social Security #: Age of Business: years Previous Location of Business: Number of years at Previous Location: Property Information: Property Owner: Address of Owner: Lease: Yes or No Term: Business Square Footage: Zoning Change Necessary: Yes __ No Phone #: Present Zoning: Description of Improvements: Exterior Improvements: Interior Improvements: Site Improvements: Total Cost of Improvements: $ Estimated Start and Completion Dates 4. Job Retention/Creation: Current Number o£ Employees: Number of Jobs to be Created: Date When Jobs Will Be Created: Types of Jobs to be Created: Title: Average Wage: . ($hour) 5. Amount Requested from BRLF Program: $ Percent of total project cost: To be used for: Title: Average Wage: ($hour) I, the Building Owner/Business Owner grant permission for the Columbia Heights Building Inspector to Pre-inspect the property. Signature of Property Owner Date 6. Bank Information: Name of Bank: Bank Address: Loan Officer: Phone # 7. Where did you hear about this program? Applicant's Signature Date COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY 2% BUSINESS REVOLVING LOAN FUND "LOAN APPLICANT'S CERTIFICATION" Updated 3-1-2002 I, the undersigned, have read and understood the documents entitled "2% Loan Program Guidelines & Requirements Summary", and accept the terms and conditions therein. I further understand that any inspection made by the City of Columbia Heights Economic Development Authority (EDA) under this program is for purposes of determining the applicant's eligibility under this program and it is not intended to represent or warrant the condition of the premises. I further understand that making application in no way insures approval of my loan or guarantees funding. I understand that "approval" means specific, written approval from both the Columbia Heights Economic Development Authority and my bank. I understand any work performed prior to this application and/or specific written approval from both the Bank and Columbia Heights Economic Development Authority will be considered ineligible. In performance of work financed by this loan, I will: require the Construction Contractor(s) who construct the improvements to conform to all of the applicable local, state and federal laws and meet the necessary insurance and bonding requirements mandated by the Bank. I (we) authorize the Columbia Heights Economic Development Authority to obtain credit bureau reports and other information necessary to process this application. I understand that should I move my business to a location outside of the City of Columbia Heights the Columbia Heights Economic Development Authority loan will be due and payable immediately upon relocation. Signature of Applicant Date COMMERCIAL/INDUSTRIAL LOAN APPLICATION INCLUDING REQUEST FOR LOAN FUNDS FROM BUSINESS REVOLVING LOAN FUND OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Loan Applicant Name Address Phone Name/Address of site where Loan Funds will be used: 3. Total Loan Requested: A. From participating financial institution: B. From EDA Business Revolving Loan Fund (BRLF): Do you have any City or EDA business related loans outstanding? If yes, what is the current balance Is your business: A. A for profit corporation B. A partnership C. Sole proprietorship 6. What is the dollar amount of your annual sales: What is dollar amount of last two years sales: As a result of receiving the loan will you be creating any new jobs?__ If the answer is yes, how many? 8. What is the purpose for the loan? Are you claiming a priority for receiving a BRLF loan based on: A. New or expanding business locating in existing vacant commercial/industrial space. B. Industrial/manufacturing use. C. Research, technology or clinical uses. D. Other: 10. On proposed purchases of.machinery and equipment, enclose copies of proposals from suppliers. If a Business Revolving Loan Fund is received from the Columbia Heights EDA, we (I) agree to comply with the requirements of the Plan for Business Revolving Loan Fund (BRLF) as approved the City Council on March 11, 1991 and the HRA Commissioners on February 26, 1991· We (I) certify that we (I) received, read and understood the BRLF Plan. We (I) certify that the above furnished information is true and correct to the best of my (our) knowledge. ( S ignatur e ) Title Date Submit ADplication through participating lender to: ECONOMIC DEVELOPMENT AUTHORITY 590 40th Avenue N.E. Columbia Heights, MN 55421 782-2854 782-2855 BRLF/4/94 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: March 19, 2002 AGENDA SECTION: ti ORIGINATING DEPT: EXECUTIVE DIRECTOR NO:'~ EDA APPROVAL ITEM: Approve Application 1998-08, BY: Tim Johnson BY: CDBG Housing Rehabilitation Program DATE: March 15, 2002 Backl~round: Center for Energy and Environment (CEE) has prepared one Community Development Block Grant (CDBG) housing rehabilitation deferred grant/loan application which needs to be submitted to Anoka County. Analysis: The following briefly summarizes the project. Please note that the amounts in the table include the $875 CEE processing fee which will be charged for each application processed. Grant # Amount Address Contractor(s) Scope of Work Summary 1998-08 $15,908 4036 6th Street Windows of Replace windows, NE America, Coys Perform ceiling repair, Masonry, Sela, repair roof. and Otogawa- Anschel Recommended Motion: Move 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. Attachments: Available at meeting EDA ACTION: ANOKA COUNTY HOME REHABILITATION PROGRAM PROCEED TO WORK ORDER Center for Energy and Environment Grant Administration Center Application Date: April 2001 Funding Year: 2000 City: Columbia Heights Target Area: Contractors: Roof Partners, Windows America, Otogawa-Anschel Source of Additional Funding: Amount: $ $875.00 TOTAL II $15,908.00 Anoka County hereby approves the Home Rehabilitation Grant applications referred to above and authorizes the immediate commencement of work as specified in each Anoka County Improvements Certificate. Grant funds for each amount shown will be forwarded upon completion of a given grant for deposit in the Administering Entity's Working Balance. Proceeds may not be disbursed until: (1) The Administering Entity conducts an inspection of the specific work for which payment is to be made and determines that the work has been completed in a satisfactory manner; and (2) a Completion Certificate is executed by all parties for work completed. Anoka County refers the Administering Entity to the warranties set forth in the contract, which apply to each application submitted to Anoka County for approval. In the event that any of the warranties are found to be untrue, Anoka County may, at its option, exercise any of the remedies provided in the Grant Funding Agreement, including the right to require the Administering Entity to reimburse Anoka County for funds previously disbursed. County Approval: Date: T:~C O MMON~DATA~0'P~ D BG~WR KOOR.DOC Abstract Torrens COUNTY OF ANOKA *** EQUAL OPPORTUNITY EMPLOYER *** ANOKA COUNTY COMMUNITY DEVELOPMENT PROGRAM REPAYMENT AGREEMENT CDBO HON~E THIS AGREEMENT, is made and entered into this day of hereinafter referred to as the "Effective Date", by and between Carol J. Biemat, a single person (hereinafter referred to as "Owner"), and the County for Anoka, a political subdivision of the State of Minnesota, having its principal office at the Anoka County Government Center, 2100 Third Avenue, Anoka, Minnesota 55303 (hereinafter referred to as "Grantor"). WHEREAS, on , the Grantor, pursuant to the provisions of the Anoka County Home or Community Development Program, agreed to grant to Owner a rehabilitation grant relating to the real estate hereinafter described in the amount of Fifteen Thousand Thirty-three & 00/100's Dollars ($15,033.002 (hereinafter referred to as the "Grant"), but only on condition that Owner executes this Agreement. NOW, THEREFORE, in consideration of said Grant and in accordance with the provisions of said Home or Community Development Program, the parties do hereby agree as follows: Owner covenants and agrees with Grantor that if the real estate hereinafter described is sold or transferred by, or by reason of the death of, or if the real estate ceases for any reason to be the principal place of residence of Carol J. Biernat, a single person. a. within a period of One (1) year after the Effective Date, the Owner shall repay to Grantor a sum equal to the full amount of the Grant, as set forth above; b. within the second (2~d) calendar year after the Effective Date, the Owner shall repay the Grantor a sum equal to ninety percent (90%) of the amount of the Grant, as set forth above; c. within the third (3rd) calendar year after the Effective Date, the Owner shall repay to Grantor a sum equal to eighty percent (80%) of the amount of the Grant, as set forth above; d. within the fourth (4'h) calendar year after the Effective Date, the Owner shall repay to Grantor a sum equal to seventy percent (70%) of the amount of the Grant, as set forth above; e. within the fifth (5t~) calendar year after the Effective Date, the Owner shall repay to Grantor a sum equal to sixty percent (60%) of the amount of the Grant, as set forth above; f. within the sixth (6th) calendar year after the Effective Date or anytime thereafter, the Owner shall repay to Grantor a sum equal to fifty percent (50%) of the amount of the Grant, as set forth above; Any such repayment shall be made to Grantor not later than the 30th day following such sale, transfer or other conveyance, or following the date upon which the real estate ceases to be the principal place of residence of Carol J. Biernat, a single person or on such later date or dates as Grantor, in its sole discretion, may designate 2. As security for Owner's obligation of repayment, and subject to the terms and conditions of this Agreement, Owner hereby grants, and Grantor shall and hereby does have, a lien on the real estate hereinafter described in the full amount necessary to satisfy said repayment obligation and the cost, including reasonable attorney's fees, of collecting the sums. The real estate subject to said lien located at 4036 6t~' Street NE, Columbia Heights, MN 55421 is situated in Anoka County, Minnesota, and is legally described in: Schedule A. 3. Promptly after the date of any sale, transfer or other conveyance of the above described real estate or promptly after the date upon which said real estate ceases to be the principal place of residence of Carol J. Biemat, a single person (or, in the event of a sale by contract for deed, at least ten (10) days prior to such date of sale), Owner or his/her heirs, executors, or representatives, shall give Grantor notice thereof. 4. In the event Owner or his/her heirs, executors, or representatives shall fail or refuse to make a required repayment within said limited period, Grantor may, with or without notice to Owner, foreclose said lien in the same manner as an action for the foreclosure of mortgages upon said real estate, as provided by statute. 5. This Agreement shall run with the aforesaid real estate and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, representatives, successors, and assigns. 6. If this Agreement is executed by a contract for deed vendor of the property, as one of the Owners, such execution shall be deemed for the purpose of establishing and continuing the existence of the indebtedness described herein and the lien granted herein. However, in the event of default of the terms hereof, neither Grantor nor its assigns shall take any action against such contract for deed vendor except such as may be necessary in order to subject to the satisfaction of said indebtedness the property described herein. 7. If owner petitions the United States courts seeking a declaration of bankruptcy, all amount due and owing under this Agreement shall become immediately due and payable and Grantor may exercise its rights as set forth in paragraph 5. Herein. Lot 6, Block 52, Columbia Heights Annex to Minneapolis IN TESTIMONY WHEREOF, the parties have executed this Agreement as of the day and year first above written. Carol J. Bi~rriat~,~/ STATE OF MINNESOTA ) COUNTY OF ANOKA ) This instrument was acknowledged before me on this Carol J. Biemat, a single person day of ~/,1~)/, 2002 by ~' .,-".. -/~L-"-t::~- ' Notary ?ubli¢ IN TESTIMONY WHEREOF, the parties have executed this Agreement as of the day and year first above written. COUNTY OFANOKA BY: Maureen Devine, Division Manager Governmental Services STATE OF MINNESOTA COUNTY OF ANOKA This instrument was acknowledged before me on this ~ day of ,2001, by Maureen Devine, Division Manager, Governmental Services, of the County of Anoka, a political subdivision of the State of Minnesota, on behalf of the County. Notary Public This instrument is exempt from registration tax and from recording fees under Section 386.77 of Minnesota Statutes. THIS INSTRUMENT WAS DRAFTED BY: Anoka County Attorney's Office Anoka County Government Center 2100 Third Avenue, 7th Floor Anoka, Minnesota 55303 The tax statement for the real estate property described in this instrument should be sent to: Tax statement for real estate property described in this instrument should be sent to: Carol J. Biemat 4036 6th Street NE Columbia Heights, MN 55421 This instrument is exempt from registration tax and from recording fees under Section 386.77 of Minnesota Statutes. SCHEDULE A Lot 6, Block 52, Columbia Heights Annex to Minneapolis PIN # 353024310036 Please return document to: Center for Energy and Environment 211 North 1st Street, Suite 455 Minneapolis, MN 55401 Carol Biemat 4036 6t~ St NE Columbia Heights, MN 55421 SCOPE OF IMPROVEMENTS HEALTH AND SAFETY $ $ $ Terminate open vent/waste pipe at kitchen wall behind cabinet per code. Install battery operated smoke detectors per each bedroom per code. Repair/replace deteriorated chimney, and replace chimney flue liner if necessary. WINDOWS AND DOORS At all main floor and second floor windows, except front porch, install A-Craft, Marvin, or equivalent wood or vinyl tilt pack sash replacements with insulated glass. Finish paint/stain to homeowner's specifications. Remove old sash weights and insulate weight pockets prior to sash installation. Haul away old window sashes and storms. At SE basement window replace deteriorated window with glass block. Haul away all debris. CEILING REPAIR Replace inadequate front door with new steel insulated prehung door of homeowner's choice. Paint door and exterior trim. Provide and install new interior trim to match existing. Finish paint/stain to homeowner's specifications. Replace front storm door with new Larson or equivalent brand storm door. See homeowner for selections and haul away old doors and all debris. Repair water damaged ceiling and wall at living room, and at main floor bedroom ceilings. Replace damaged portions and tape, sand, texture, prime and paint. See homeowner for paint color and haul away all debris. 640 BIERNAT ROOF REPLACEMENT Tear off shingles on house to bare wood and replace any deteriorated roof decking. Install ice and water shield, starter roll, and R-90 roof vents per code. Install new flashing and install 230-240# shingles over 15# roofing felt. Owner to select shingle color. Haul away all debris. Owner may choose to complete some code work on his or her own. Any work the contractor performs must follow OSHA regulation for lead base paint, 29 CFR 1926.62 LEAD-SAFE WORK PRACTICES. Please list work not bid to be completed by owner. PROJECT TOTAL COST L:\data\607~qsd-mahon.ey.do¢ 640 BIERNAT CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: March 19. 2002 AGENDA SECTION: ORIGINATING DEPT: EXECUTIVE DIRECTOR NO: ._~ EDA APPROVAL ITEM: Approve Application 1998-10, BY: Tim Johnson BY: CDBG Housing Rehabilitation Program DATE: March 15, 2002 Backl~round: Center for Energy and Environment (CEE) has prepared one Community Development Block Grant (CDBG) housing rehabilitation deferred grant/loan application which needs to be submitted to Anoka County. Analysis: The following briefly summarizes the project. Please note that the amounts in the table include the $875 CEE processing fee which will be charged for each application processed. Grant # Amount Address Contractor(s) Scope of Work Summary 1998-10 $20,833 3752 2 ½ Street Custom Home Replace furnace, NE Remodeling windows and frames. Repair ceiling. Install fascia, gutters, roof on garage, as well as sidewalk and patio repair. Recommended Motion: Move to approve the CDBG Housing Rehabilitation Deferred Grant/Loan Application for Grant # 1998-10 in the amount of $20,833 for housing rehabilitation to Custom Home Remodeling, and the Center for Energy and Environment subject to meeting all program requirements; and furthermore, to direct staff to submit the loan application to Anoka County and to authorize all related expenses to be reimbursed from Fund 202-46350-4600/3050. Attachments: Available at meetin$ EDA ACTION: CENTER FOR ENERGY AND ENVIRONMENT 2l I North 1'h Street, Suite 455 Minneapolis, MN 55401 Phone (612) 335-5864 AMENDMENT REQUEST CERTIFICATE Phyllis L. May C-1995-10 Rehabilitation (}rant Number 3-19-2002 Address of Grant Recipient Date of Amendment Request Describe clearly the additional work to be approved and additional costs to be incurred: Name of Grant Recipient 3752 2 ½ Street NE, Columbia Heights, 55421 Fax (612) 335-2650 Bid has increased by $422.00. Contractor discovered minor structural modifications that needed to be addressed to complete project. Original Grant Amount: $19,536.00 New Grant Amount $19,958.00 Funds to be drawn from year Target area City Custom Home Remodeling Construction Firm (please print) $422.00 Totfl $422.00 hereby agrees to make change as specified above. The above prices and specifications of the Amendment Request are hereby accepted. All work to be performed under same terms and conditions as specified in the original contract and in the Anoka County Contractor- Homeowner Warranty unless otherwise stipulated. Homeowner Date Executive Director NOTE: TO BE VALID THE REQUEST MUST BE APPROVED BY AN AUTHORIZED REPRESENTATIVE OF THE FRIDLEY HOME IMPROVEMENT (}RANT PROGRAM. Date Signature Anoka County Representative Date 607\CDBG~reqtcert.doc Page 1 of I CEE/COLUMBIA HEIGHTS HRA ADMINISTERING ENTITY PROCEED TO WORK ORDER REHABILITATION APPROVAL GRANT NUMBER RECIPIENT LAST NAME DATE AMOUNT OF GRANT MAY $19,536.00 C-1998-10 CEE Processing Fee i/~]b] $875.00 Application date. May 1998 Board approval date Bid opening date Funds to be drawn from year Target area Contractors Custom Home Remodeling City of Columbia Heights Source & amount of other funding N/A TOTAL $20,411.00 Anoka County hereby approves the Home Rehabilitation Grant applications referred to above and authorizes the immediate commencement of work as specified in each Anoka County Improvements Certificate. Grant funds for each amount shown will be forwarded upon completion of a given grant for deposit in the Administering Entity's Working Balance. Proceeds may not be disbursed until: (1) The Administering Entity conducts an inspection of the specific work for which payment is to be made and determines that the work has been completed in a satisfactory manner; and (2) a Completion Certificate is executed by all parties for work completed. Anoka County refers the Administering Entity to the warranties set forth in the contract, which apply to each application submitted to Anoka County for approval. In the event that any of the warranties are found to be untrue, Anoka County may, at its option, exercise any of the remedies provided in the Grant Funding Agreement, including the right to require the Administering Entity to reimburse Anoka County for funds previously disbursed. Approved by~~~~~r 607\CDBG\wrkodr.doc CONTRACT FOR REHABILITATION OF RESIDENTIAL PROPERTY THIS AGREEMENT is made on this day of~ , 2001, between Phyllis L. May, a single person, owner of 3752 2 ½ Street NE, Columbia Heights, MN 55421 party of the first part, hereinafter referred to as the "Owner", and Custom Home Remodeling, party of the second part, hereinafter referred to as the "Contractor". WITNESSETH The Contractor for and in consideration of the payment or payments herein specified and by the Owner to be made, hereby covenants and agrees to furnish all materials (except such as are specified to be furnished by the Owner) all necessary tools and equipment and to do and perform all the work and labor in the rehabilitation of the residential property located at 3752 2 ½ Street NE for the price and compensation set forth and specified in the Proposal signed by the Contractor and which is attached hereto and incorporated herein as part of this Contract, said work to be done and performed in accordance with the Plans, Specifications, and Special Provisions therefor on file and in the office of the Center for Energy and Environment, of the County of Hermepin, State of Minnesota, which Plans, Specification, and Special Provisions are hereby made a part of this Contract. The Contractor further covenants and agrees that it will commence work on or before January 15, 2002, and will have the same completed in every respect to the satisfaction and approval of the Center for Energy and Environment and the Owner, on or before April 15, 2002 or within ninety (90) calendar days commencing at Notice to Proceed date. The Owner covenants and agrees that he/she shall tender payment of the agreed upon contract price within thirty (30) days of satisfactory completion of said work and the receipt of the complete release of all liens arising out of this Contractor or receipts in full, covering all labor and materials for which lien could be filed, or a bond, all as provided for in the Hold Harmless clause of the Contract. The Owner and Contractor acknowledge that the activities of CEE hereunder are undertaken for the purpose of assisting Owner to receive federal funds to bring Owner's house up to state and local code, health, safety and weatherization standards. Owner and Contractor release and hold harmless CEE and its governing body, members, officers, agents, servants and employees from and against any claims, demands, liabilities, suits or actions in connection with this matter. 607~CDBG~'ehab-rp.doe IN WITNESS WHEREOF, the Owner and Contractor have hereunto subscribed their name. OWNER Dated: CONTRACTOR Phone: By: Name: Dated: Phone: APPROVED AS TO FORM David J. I~Idg, Program Manager Center for Energy and Environment Dated: [ //[~//6~"~" '/ By City of Columbia Heights Dated: 607~CDB GArehab-rp.do¢ Abstract CDBO Torrens HOME COUNTY OF ANOKA *** EQUAL OPPORTUNITY EMPLOYER *** ANOKA COUNTY COMMUNITY DEVELOPMENT PROGRAM REPAYMENT AGREEMENT THIS AGREEMENT, is made and entered into this day of hereinafter referred to as the "Effective Date", by and between Phyllis L. May, a single person (hereinafter referred to as "Owner"), and the County for Anoka, a political subdivision of the State of Minnesota, having its principal office at the Anoka County Government Center, 2100 Third Avenue, Anoka, Minnesota 55303 (hereinafter referred to as "Grantor"). WHEREAS, on , the Grantor, pursuant to the provisions of the Anoka County Home or Community Development Program, agreed to grant to Owner a rehabilitation grant relating to the real estate hereinafter described in the amount of Nineteen Thousand Nine-hundred Fifty-eight & 00/100's Dollars ($19,958.00) (hereinafter referred to as the "Grant"), but only on condition that Owner executes this Agreement. NOW, THEREFORE, in consideration of said Grant and in accordance with the provisions of said Home or Community Development Program, the parties do hereby agree as follows: Owner covenants and agrees with Grantor that if the real estate hereinafter described is sold or transferred by, or by reason of the death of, or if the real estate ceases for any mason to be the principal place of residence of Phyllis L. May, a single person. a. within a period of One (1) year after the Effective Date, the Owner shall repay to Grantor a sum equal to the full amount of the Grant, as set forth above; b. within the second (2nd) calendar year after the Effective Date, the Owner shall repay the Grantor a sum equal to ninety percent (90%) of the amount of the Grant, as set forth above; c. within the third (3~) calendar year after the Effective Date, the Owner shall repay to Grantor a sum equal to eighty percent (80%) of the amount of the Grant, as set forth above; d. within the fourth (4th) calendar year after the Effective Date, the Owner shall repay to Grantor a sum equal to seventy percent (70%) of the amount of the Grant, as set forth above; e. within the fifth (5th) calendar year after the Effective Date, the Owner shall repay to Grantor a sum equal to sixty percent (60%) of the amount of the Grant, as set forth above; f. within the sixth (6th) calendar year after the Effective Date or anytime thereafter, the Owner shall repay to Grantor a sum equal to fifty percent (50%) of the amount of the Grant, as set forth above; Any such repayment shall be made to Grantor not later than the 30th day following such sale, transfer or other conveyance, or following the date upon which the real estate ceases to be the principal place of residence of Phyllis L. May, a single person or on such later date or dates as Grantor, in its sole discretion, may designate. 2. As security for Owner's obligation of repayment, and subject to the terms and conditions of this Agreement, Owner hereby grants, and Grantor shall and hereby does have, a lien on the real estate hereinafter described in the full amount necessary to satisfy said repayment obligation and the cost, including reasonable attorney's fees, of collecting the sums. The real estate subject to said lien located at 3752 2½ Street NE is situated in Anoka County, Minnesota, and is legally described in: Schedule A. 3. Promptly after the date of any sale, transfer or other conveyance of the above described real estate or promptly after the date upon which said real estate ceases to be the principal place of residence of Phyllis L. May (or, in the event of a sale by contract for deed, at least ten (10) days prior to such date of sale), Owner or his/her heirs, executors, or representatives, shall give Grantor notice thereof. 4. In the event Owner or his/her heirs, executors, or representatives shall fail or refuse to make a required repayment within said limited period, Grantor may, with or without notice to Owner, foreclose said lien in the same manner as an action for the foreclosure of mortgages upon said real estate, as provided by statute. 5. This Agreement shall mn with the aforesaid real estate and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, representatives, successors, and assigns. 6. If this Agreement is executed by a contract for deed vendor of the property, as one of the Owners, such execution shall be deemed for the purpose of establishing and continuing the existence of the indebtedness described herein and the lien granted herein. However, in the event of default of the terms hereof, neither Grantor nor its assigns shall take any action against such contract for deed vendor except such as may be necessary in order to subject to the satisfaction of said indebtedness the property described herein. 7. If owner petitions the United States courts seeking a declaration of bankruptcy, all amount due and owing under this Agreement shall become immediately due and payable and Grantor may exercise its rights as set forth in paragraph 5. Herein. Lot 2, Block 93, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota IN TESTIMONY WHEREOF, the parties have executed this Agreement as of the day and year fn'st above written. OWNER STATE OF MINNESOTA ) ) SS. COUNTY OF ANOKA ) This instrument was acknowledged before me on this [ D~day of ~'~:~-'~, 2001, by Phyllis L. May, a single person · ' ', .'g ' '~ '.~a~ ~ ~ .~"::.-~" .~ NOTARY PU~LIC-MINNE~TA ~ ~::;:'!'~':;~<~ ~ HENNEPIN COUNTY · ~,~:2, ~-~ . . . Notary~l~c - ' ' IN TESTIMONY WHEREOF, the parties have executed this Agreement as of the day and year first above written. COUNTY OF ANOKA BY: Maureen Devine, Division Manager Governmental Services STATE OF MINNESOTA COUNTY OF ANOKA This instrument was acknowledged before me on this ~ day of ,2000, by Maureen Devine, Division Manager, Govemmental Services, of the County of Anoka, a political subdivision of the State of Minnesota, on behalf of the County. Notary Public This instrument is exempt from registration tax and from recording fees under Section 386.77 of Minnesota Statutes. THIS INSTRUMENT WAS DRAFTED BY: Anoka County Attomey's Office Anoka County Government Center 2100 Third Avenue, 7th Floor Anoka, Minnesota 55303 The tax statement for the real estate property described in this instrument should be sent to: Tax statement for real estate property described in this immanent should be sent to: Phyllis L. May 3752 2 1,/2 Street NE Columbia Heights, MN 55421 This instrument is exempt fi.om registration tax and from recording fees under Section 386.77 of Minnesota Statutes. SCHEDULE A Lot 2, Block 93, Columbia Heights Annex to Minneapolis, Anoka County, MinnesOta PIN # 353'024330119 Please remm document to: Center for Energy and Environment 211 North 1st Street, Suite 455 Minneapolis, MN 55401 ECONOMIC DEVELOPMENT AUTHORITY (EDA) DATE: March 15, 2002 TO: All EDA Boardmembers FROM: Randy Schumacher, Acting Deputy Executive Director Redevelopment Plan for 40th and Lookout Place Please find attached a very preliminary redevelopment proposal for the south east Comer of University Avenue and 40th Avenue. The site is made up of five (5) parcels of property and a partial vacation of Lookout Place. The City presently 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 presently vacant and will soon be put up for sale. The general business parcel at 322 40th Avenue, is owned by Michael Sweat, who has outgrown his building, and would like to relocate to a larger building in Columbia Heights. I have discussed this preliminary redevelopment proposal with the City Engineer. I will elaborate on additional issues related to the potential development of this one acre, plus site. MEMO: TO: ECONOMIC DEVELOPMENT AUTHORITY FROM: TIM JOHNSON, CITY PLANNER DATE: MARCH 14, 2002 RE: UPDATE ON POTENTIAL DEVELOPMENT OF LOMIANKI PARK PROPERTY. Since the beginning of the year, the City Council has been involved in discussions regarding the potential development of portions of Lomianld Park. At February and March work sessions, Bruce Nedegaard approached the City Council with a concept development plan for high-density townhomes. The plan presented included the entire portion of south Lomianki Park as well as a portion of land extending up to 37th Avenue on the south. Evidently the Railroad owns the Minneapolis property and is not interested in selling any portion of the Minneapolis site. Bruce Nedegaard has met with the owner of the small industrial business located at 82 38* Avenue, and the owner of the residential home at 3702 Main Street and is pursuing negotiations for both properties. However, no agreements have been made for the property at this time. Staffhas spoken with the owner of the industrial property who has indicated that he would like to sell the building and land, but is unsure of the true value of his property and business. Staffhas outlined for the EDA and City Council the necessary planning steps that will need to be taken in order to develop this land. Staff has also included a copy of the appraisal that was completed for Lomianki Park north and south parcels. The first and most important step for redevelopment of this property is a public open house, which will be scheduled for late March or early April. Staff has spoken with Bruce Nedegaard and he has indicated that he will be present with a townhome concept plan for south Lomianki Park. Following the public open house, the planning steps outlined will be necessary. Analysis: City staff believes the City Council and EDA can continue to move forward with the potential development of Lomianki Park. However, there are a number of important steps that need to be taken before any development can occur. Conclusion: Staffrecommends to continue pursuing the necessary steps for the potential development of Lomianki Park. Attachments: Lomianki Park property map; Necessary planning steps; Land Appraisal; Ordinance # 831 PLANNING STEPS NECESSARY FOR DEVELOPMENT OF LOMIANKI PARK PROPERTY (NOT NECESSARILY IN ORDER) Host Public Open House to present preliminary development concepts to neighbors. Acquisition of Industrial business and property at 82 38th Avenue NE, and potential acquisition of single family home at 3702 Main Street NE. Establish an ordinance amending the former ordinance that dedicated certain lands to be used for park purposes. Contact Metro Council regarding steps to initiate future land use change fi.om park land to medium or high-density residential. Hold public hearing to rezone the entire block between 37th and 38th Avenue fi.om Light Industrial to Residential -3 to allow for single, two, or multi-family residential. Replat and Site Plan Review of the entire property, including vacating or establishing right-of-way, soil tests, storm water plans, grading plans, etc. · Cooperative agreement with City of Minneapolis for 37th Avenue extension. 3929 5905 8O 81 82 3741 3701 125.0' 3956 3950 3946 3942 3938 3932 3928 3924 3916 3914 3910 100 3852 3848 3842 3836 3828 3824 3820 3816 3810 3804 3800 3752 3744- 3740 3732 3728 3720 3712 3706 3702 40TH 150 160 3949 3948 3945 3946 3941 3942 3937 3938 3928 3929 3926 3920 3919 3916 3915 3912 3910 3909 151 3906. 39TH 3859 3856 3855 3852 3849 3848 3843 3840 3837 3836 3831 3832 3825 3828 3819 3820 3815 3806 3811 3804 3807 3802 3801 3800 38TH 3755 3756 3748 3747 3744 3743 3740 3739 3736 3733 3732 3729 3728 3724 3725 3720 3717 3712 3708 3709 3705 3704 3701 3700 'Z,~TM 3923 3915 3919 3907 3901 3863 AVE 212 ~-~. 3948 3940 3859 3855 3858 3851 3850 3847 3848 3843 3844 3839 3838 3837 3832 3833 3826 3827 3820 3819 3816 3815 3812 63 B' ~3.0' 70.0' 80.0' 160.0' ,t,i 222 226 228 230 ~ \ ~,~'3929 .~,., 3925 3930 3915 3909 3900 3809 3806 3805 3800 3753 3752 3748 3747 3744 3741 3740 3736 3737 3732 3731 3728 3724 3723 3720 3717 3716 3711 3712 3708 3705 3704 3701 3835 3829 3825 3822 3823 3816 3815 3810 3811 3804 3805 3800 AVE 3755 3754 3746 3745 3742 3741 3737 3736 3733 3732 3729 3726 3725 3722 3721 3717 3716 3709 3710 3705 249 AVE 3853 3825 3809 3801 3757 3741 3737 3719 3701 ~ ~ 7: SCANNED . ~., .~ ~_ .~. . ~ . ,,., ~, [Y OF COLUMBIA HEIGHTS '?";" : -- ~ ~!~ ~' - .. '-.'.~-. · -t-'~'-: ' :; , ~ -'~:' ADMINISTRATIVE OFFICES ~88-9221 COLUMBIA H~IGHTS MINNESOTA 55421 ORDINANCE //831 BEING AN ORDINANCE AMENDING ORDINANCE #803 BEING AN ORDINANCE DESIGNATING CERTAIN LAND USE OF PUBLIC PROPERTIES IN BLOCKS 73, 95, and 100, COLUMBIA HEIGHTS ANNEX THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS DOES ORDAIN: Section 1. That Section 2 of Ordinance #803 which states The following properties shall be designated for park usage: Lots 16 thru 28, Block ~}5 lying between 37th and 38th Avenue, possibly to be used as a picnic park. Lots 1~ thru 30 inclusive, Block 100, lying between 38th and 3~}th Avenues with a projected proposed use as a play park'area. Lots 23 thru 30, inclusive, Block 73, proposed as a nature park. is hereby amended to read as follows: The following proj)erties shall be designated for park usage: Lots 16 through 28, Block ~)$ lying between 37th and 38th Avenues, possibly to be used as a picnic park. Lots 19 through 30 and the 9/esterly 75 feet of Lot 18, inclusive, Block 1OO, lying between 38th and 39th Avenues with a proposed use as a play park area. Lots 23 through 30, inclusive, Block 73, proposed as a nature park. Section 2. That Section 3 of Ordinance //803 which states: That the following described parcels be designated for continued industrial use: Lots 29 and 30, Block 95, lying south of 38th Avenue, Lots 16 thru 18, Block 1OO, and Lots 16 thru 22, Block 73. is hereby amended to read as follows: That the following described parcels be designated for continued industrial use: Lots 29 and 30, Block 95, lying south of 38th Avenue, Lots 16 and .17, Block 100, and Lots 16 thru 22, Block 73. Section 3. This ordinance shall take effect and be in force from and after thirty (30) days after its passage.. First Reading: December 23, 1~)74 Second Reading: January 13, 1975 Offered by: Heintz Seconded by: Norberg Roll Call: All Ayes Watson Appraisal and Consultant Service 4230 Cenlral Avenue N.E., Columbia Heighls, giN 5542! Office: (1~) 788.2714 · Alter Hours: {~,,.~) 571.1717 Janua~ 7, 2002 City of Columbia Heights 590 40t~ Avenue NE Columbia Heights, MN 55421 RE: Vacant land on California St.--374 to 384 Avenue Gentlemen: In accordance with your request for an evaluation of the vacant land beyond the cul-de-sac on the end of California Street, 374to 4 . . , 38 Avenue NE, the following is respectfully submitted: 1. I walked and photographed the area to determine the physical conditions of the site. 2. I noted the existing Industrial Building on the southeast corner of California Street and 384 Avenue. I understand that this structure is to be acquired and razed for redevelopment. 3. The area is a gently sloping grassy site with higher land in the south end near 37u' Avenue with drainage to the north. 4. The "Vacant" city property east of the California Street Right of Way is about 127 feet deep and 600 feet north to south with a total area of approximately 76,200 sq. ft. 5. The west half of California Street is vacated and that v.acating must be rescinded and a full right of way restored. " 6. l located some residential site sales and also some Commercial/Industrial land sales in the City of Fridley where sales were consummated that were similar to subject. 7. In the past two years sales of Commercial and Residential sites are fairly similar to the sale price per square foot of land which sell in our area. This land is zoned Industrial, but the highest and best use for the site should be multiple dwelling as a buffer to the Residential properties on Main Street The Residential homes east of the lots on California Street make Industrial use difficult to justify. Costs of re-platting, utilities, extensions, paving, etc. must be deducted from comparable sales. Based on the land sales in Columbia Heights and Fridley, I would estimate the value of the strip of land east of California Street, 374 to 384 Avenue to be about $2.50/sq. ft less the cost of street opening, sewer and water lines, rezoning, and street surfacing (and lift stations, if necessary) estimated at 50% of land value or $1.25/sq. ft. Respectfully submitted. Malcolm O. Watson Appraiser/Consultant MN Lic. #4000369 sh 4230 Cenlral Avenue N.~:,, Columbia. Heights, kin 55421 Olfice: {612) 788-2714 · Aller Hours: (612) 571.1717 Location Map I IO 18 ii, 0 If) ! Watson Appraisal and Consultant Service 4230 Cenlral Avenue N.£,, Columbia Heighls, MN 55421 Olfice: (612) 788-2714 · Alter Hours: (612) 571.17t7 January 7, 2002 City of Columbia Heights 590 40* Avenue NE Columbia Heights, MN 55421 RE: Vacant land on California St North of Cul-De-Sac Gentlemen: In accordance with your request for an evaluation of the vacant land beyond the cul-de-sac on the end of California Street north of39t~ Avenue NE, the following is respectfully submitted: I. I walked and photographed the area to determine the ph"~sical conditions of the site. 2. I noted the existing BNSF Relay Tower west of the exis. ting cul-de-sac and note that access to same is from California Street south of said tower. '~ 3. The area is a genlly sloping grassy site with high land in the northeast and northwest comers with good drainage to the existing cul-de-sac. 4. The "vacant" BNSF land consists of an area approximately 300 feet long north to south and 100 feet deep west of the California Street Right Of Way with a total size of approximately 30,000 sq. ft. 5. The "Vacant" city property east ofthe California Street Right of Way is about 127 feet deep and 318 feet north to south with a total area of approximately 40,.400 sq. ft. 6. If California Street is vacated beyond the cul-de-sac it would add 230' x 60' to the total vacant area or about 13,800 sq. ft. 7. With vacating the "vacant" land is about 84,200 sq. ft. including California Street Right of Way. 8. I picked up Commercial/Industrial sales in the City of Fridley where some sales were consummated that wer~ similar to subject. 9. The land is zoned Industrial and this is the highest and best use for the site. 10. There were no industrial sales of land in the past two years, but sales of Commercial and Residential sites are fairly similar to the sale price per square foot of Industrial land which sell in larger parcels than the typical residential sites (10,000 sq. ft. more or less compared to ½ acre or more for Industrial). Based on the co~nparable land sales the three commercial sales (gl, #2, and #3) in Fridley give a good estimate of value at about $2.40/sq. ft. or $4 8,000 per 20,000 sq. ft. site. This value assumes the reconstruction of California Street with the relocated cul-de-sac together with the re-platting, vacating of the north section of Call fomia Street and associated reconstruction costs. The value of the BNSF land in its present state would be about 50% of the platted value or $1.20/sq. ft. x 30,000 sq. ft. = $36,000. I found a BNSF sale that involved a sale and resale in 1998 of a site in the NE ¼ ofNE ¼ of Sec 27 (PIN 27 30 24 i I 0017) involving 230,367 sq. fi. selling for $42,200 ($7,760/acre), but Fridley considered it a "Bad Sale" involving a split and Right of Way change of use, etc. Respectfully submitted, Appraiser/Consultant License #4000369 sh Subject Site ECONOMIC DEVELOPMENT AUTHORITY (EDA) DATE: March 12, 2002 TO: All EDA Commissioners Walt Fehst, Executive Director FROM: Randy Schumacher, Acting Deputy Executive Director RE: Annual Report for 2001 Attached for your review is a copy of the Community Development Annual Report for 2001. Thc report provides a description of the highlights that occurred in 2001, and provides some factual data and documentation. This is for informational purposes and will be discussed at the meeting under the Acting Deputy Executive Director's report. h:\EDA MisckAnnual Report for 2001 2001 ANNUAL REPORT COMMUNITY DEVELOPMENT DEPARTMENT COLUMBIA HEIGHTS, MINNESOTA INTRODUCTION 2001 was a busy, yet productive year for the Columbia Heights Community Development Department. Unfortunately, due to natural attrition and professional development moves, the departments staffing was reduced by 25%. Staffing changes included the addition of a part time, temporary Housing Assistant, Mark Nagel. Julie Hanson, PT Permit Clerk left in March and Kathy Pepin the License/Permit Clerk left in May for positions in Coon Rapids. Shelley Hanson was transferred from administration to serve in the position on a permanent, part time basis. A significant number of policy documents were completed which will have long-term impacts on the redevelopment activities within the City of Columbia Heights. Those include the completion of updating our Comprehensive Plan, rewriting the Zoning Ordinance, and undertaking a Master Redevelopment Plan for Columbia Heights. Building Permit and construction activity slowed in 2001 yet license and permit fees increased significantly. (see the attached permit and license schedules) The efforts of the Columbia Heights Economic Development Authority, Housing and Redevelopment Authority and Community Development Department continue to focus on achieving the broad Goals and Objectives set by the City Council and Columbia Heights EDA. The staff wishes to thank the elected and appointed representatives that we work with on the City Council, Columbia Heights EDA, the HRA, and Planning and Zoning Commission for their support and initiative in guiding development and redevelopment activities within the City. ECONOMIC DEVELOPMENT AUTHORITY The EDA Board consists of seven members. Five of the members consist of the Mayor and four City Council members with two members from the community at-large. The EDA was established by the City Council on January 8, 1996. The fundamental purpose of the EDA is stated as follows: "It is found and determined by the City Council that the encouragement and financial support of Economic Development and Redevelopment in the City is vital to the orderly development and financing of the City and in the best interest of the health, safety, prosperity, and general welfare of the citizens of the City." Later the EDA further moved to fred the purpose of the Columbia Heights Economic Development Authority by adopting the following mission statement. The mission of the Columbia Heights Economic Development Authority is to provide f'mancial and technical assistance and resources to residential, commercial, and industrial interests to promote health, safety, welfare, economic development, and redevelopment. In order to fulfill the purposes of the EDA, several projects and activities associated with development and redevelopment where undertaken. One of the larger projects to be completed was that of 22 affordable townhomes in the City's Transition Block Redevelopment. The City received $575,000 in Metropolitan Liveable Communities Funds to assist in its construction as well as 50 units of Senior Living Facilities. The EDA/City also made application to Anoka County for a Commercial Revitalization Grant. Funding was approved in the amount of $175,000, which will be used to promote new commercial development within the City. Numerous Capitol Improvements were made at Parkview Villa in 2001. The heating plant was doubled in size, a new central air conditioning unit was installed, a state of the art management software system was installed, and a new security system was retrofitted in the building. HOUSING & REDEVELOPMENT AUTHORITY The HRA Board is made up of six members, which consists of the Mayor and four City Councilmembers and a resident at large from Parkview Villa. The City Council took formal action to transfer all EDA owned and operated housing units back to the HRA. The major philosophy was that the EDA wanted to focus on commercial and industrial revitilization and allow the HRA Board to deal with housing issues. HIGHLIGHT SUMMARY Accomplishments of the Community Development Department over the course of the year are presented in list form below and in no particular order. · Submitting for reimbursements for 1998, 1999, and year 2000 Section 8 dollars owed to the City of Columbia Heights. · Completed Parking Lot assessment for both City owned Parking Ramps. · Executed all legal documents relating to the Transition Block Redevelopment · Sale and Development of 4200 Central Avenue (Nedegaard Property and Commercial Building) · Approval of a $175,000 grant from Anoka County for Commercial Revitalization (Acquisition of Conoco Station) · Completion of the Analysis for Tax Increment Financing Projects for year 2001 · Completed the setting up of individual Tax Increment files for each existing District · The City Audit identified internal control matters that needed to be addressed, ranging from a list of assets to management of laundry facility proceeds. All issues have been addressed and completed pursuant to State Auditing requirements. · Replaced the air conditioning unit at Parkview Villa, which was 26 years old. · Completed air quality testing in City Hall for all offices. · Coordinating non-compliance issue for Sullivan Lake Tax Increment District with Anoka County. · Created signs at HRA/EDA development project sites to encourage additional public relations in the community. · Established Tax Increment Financing District #9 for the fmancing of the Transition Block Improvement Projects. · Transferred the Section 8 Program to the Metropolitan Council HRA · Sold 4401 Quincy Street NE and 3913 Polk Street NE to Habitat for Humanity for Redevelopment while implementing $70,000 of Home Grant Funds from Anoka County. · Initiated the final one year contract with Crest View Co~poration for Management of Parkview Villa Senior Facility · Approved the Public Housing Assessment System, management operation program certification (PHAS). · Completed the removal of homes and site preparation on City/EDA owned property at 3944 and 3950 Lookout Place, and 828 40~ Avenue for future development. · The house was razed on the property at 4358 3~ Street as an abatement action by the City. This property was then sold back to adjacent property owners. · Prepared the 2002 Budget and Levy for HRA/EDA, Parkview Villa North and South. · Approved the Calculation of Performance Funding System Operating Subsidy, Occupancy Percentage, Allowable Utilities, Drug Free Workplace, Direct Disbursement, and Certificate of Payments to Influence Federal Transactions for 2001. · Approve the Agreement for Administrative Services of Center for Energy and Environment for MHFA Loan processing for the year 2002. · Drafted preliminary application for the 2002 CDBG Program · Processed the renewal of the Honeywell and Fidelity Cleaning Services Contracts for 2002. Executed a Physical Condition Audit to be performed on the two City owned Parking Ramps. Initiated a Resident Survey to the residents of Parkview Villa. · Converted all departmental files from WordPerfect to Word. · All HRA/EDA files from 1994 to the present were scanned into LaserFische. · Processed the renewal of the American Portable Telecom Contract for 2002. · Settled the Parkview Villa case of Angela Tomala versus the City of Columbia Heights. · Implemented the Contract with Trans-Alarm Inc. to install Security Cameras and Proximity Readers at Parkview Villa. · Finalized the installation and training of a new hardware and software system at Parkview Villa for processing essential HUD documents and management systems. · Processed an amendment to the TIF Contract for Private Development between the EDA, City of Columbia Heights, Robert C. Barnick and Priscilla A. Bamick, dba Metro Assemblies. · Developed a Security Card Policy and Procedure, Residents Security Card Form and the Additional Security Card Registration Form for Parkview Villa. · Amended the Parkview Villa Lease Agreement to include the One Strike Provision and Admission and Continued Occupancy Policies. · Developed the Policy and Procedure for Tracking Crime and Crime Related Problems Form and Screening Applicants Criminal History Form for Parkview Villa. · Implemented the hiring of a part-time or weekend Caretaker at Parkview Villa to lessen maintenance overtime costs. · Implemented the Re-Piping of the Boilers at Parkview Villa in order to double the heating capacity of the system. · Approved the Licensing and Agreement for the Parkview Villa Beauty Salon to meet the State and Audit requirements. · Obtained a new contract for snow removal at Parkview Villa with Professional Building Maintenance Services for 2001-2002. · Adopted a Resolution Transfen-ing Authority of certain housing projects from the EDA to HRA for 2002. · Decertified two parcels from the Central Downtown Business TIF District No. 1 to TIF District No. 9 per Anoka County Mandate. · Approved the Certification of Completion releasing the units in University Heights Townhome Project from any future land title issues related to the sale of the units. · In January, initiated the first housing loan informational pages on the City's Website and Cable Television Channel for Columbia Heights. Increased Annual HUD subsidy from $52,000 to $93,000 · Sold the two remaining Home Mortgage Loans to Community Reinvestment Fund. · Approved the 2001 Capital Improvements Program for Parkview Villa. · Resolved audit issues for payment to employees of Millar Elevator to meet Davis-Bacon requirements from the Parkview Villa Elevator Modernization Project. · Established a three member Business Revolving Loan Fund Review Committee. · Participated in the MHFA First Time Homebuyer Program, with eight homes totaling $980,605, the highest number ever for Columbia Heights. · Decertified TIF District No. 2 (St. Timothy's Lutheran Church) · Updated and submitted documentation for the City to receive a higher Preliminary Housing Performance Score, enabling the City to receive future Metropolitan Council Grants and Loans. · Negotiated early payoff of the last Sheffield Loan Agreement. · Sold 4656 Monroe Street NE property for development of a new home. HOUSING First Time Home Buyers Program The City of Columbia Heights applied for and received funding for a first time homebuyer program tl~ough the Minnesota Housing Finance Agency (MHFA) Minnesota Cities Participation Program (MCPP). In 2001, we participated with Anoka County rather than receiving an individual allocation for the City of Columbia Heights. Anoka County was awarded a total allocation of $6,870,095. The funds under this program are provided to qualified fzrst time homebuyers with an income below 80% of median income adjusted for family size. Eligible families may purchase an existing home for under $175,591. The annual percentage rate was 6.05%, until July 18~h were it dropped to 5.95% with 1 ¼ points for approved loans. In 2001, seven loans in the amount of $906,944 were issued in Columbia Heights. Minnesota Housing Finance Agency (MHFA) Loan Programs The Columbia Heights EDA administered loan programs from the MHFA Fix-Up Fund. The EDA participated with other communities in the Center for Energy and Environments Community Fix Up Funds for owners of Cape Cod or Rambler style homes built before 1970, a Rental Loan Fund and a Rental Rehabilitation Program. Property Acquisition · 3718 Central Avenue Community_ Development Block Grant (CDBG) Program In April 2001, Anoka County awarded the City of Columbia Heights a total of $175,000 in Community Development Block Grant funding to acquire the gas station property at 3955 University Avenue NE, as part of the competitive CDBG application process. Our award was tied for the largest of any municipality or township in Anoka County. The funding is consistent with high priority external goals established by the City, which were to improve the physical appearance of the commercial and industrial areas, and to increase our commercial and industrial property tax base. Planning & Zoning The Planning and Zoning Commission is a five member advisory board to the City Council charged with the responsibility of implementation and maintenance of the City's Comprehensive Plan and Zoning Ordinance. Current commission members are: Tom Ramsdell served as the Chair in 2001 and was reappointed Chair for 2002, Ted Yehle, Tammera Ericson, Steven Johnson, Donna Kay Schmitt, and Marlaine Szurek serves as Council liaison. The Planning and Zoning Commission meets regularly on the fin-st Tuesday of each month in the Columbia Heights City Council Chambers and holds public hearings for Zoning District and Ordinance amendments, requests for variances to the Zoning Ordinance, requests for lot splits, site plan review, Conditional Use Permits, etc. The Planning and Zoning Commission also serves as the Board of Appeals for code compliance disputes. Commissioners typically make site visits to the properties prior to their meetings and hear testimony from interested parties, including neighbors, in order to make recommendations to the City Council for approval or denial of the requests. Staff support consists off Tim Johnson, Planner; Shelley Hanson, Secretary; Randy Schumacher, Acting Community Development Director; Fire Department; Public Works Department; and, other City departments when review is necessary. City staff provides information to the Commission regarding applicable ordinances, history, current use of the property, description of requests, and other pertinent facts pertaining to the cases on the monthly agenda. The Planning and Zoning Commission heard 18 separate cases during 2001. Note that frequently more than one request will be heard in one case. For example, a Conditional Use Permit, site plan review, and variance request for one project would be heard as one case. The table below illustrates the number and type of requests heard. Type Number Rezoning 1 Conditional Use Permits 6 Variances 2 Appeals 0 Site Plan Reviews 6 Plats 0 Amendments 1 Lot Split 2 Comprehensive Plan Update And Zoning Ordinance Rewrite The City of Columbia Heights approved its Comprehensive Plan in June 2000 and the Metropolitan Council officially endorsed the plan in June 2001. The Comprehensive Plan is a document that lays out goals and policies used by city officials to guide decision-making. It covers many aspects of city government, including; land use, housing, public facilities, transportation, parks, sidewalks and trails, population and employment, and community image. Staff worked with SRF Consulting Group, Inc. and a 13 member planning adviso~ committee in the preparation of this plan. The Metropolitan Council is the regional planning agency charged with overseeing land use policy. In addition to the Comprehensive Plan update, the City Council approved the new Zoning and Development Ordinance in May 2001. This Ordinance established consistent standards and design criteria for development and redevelopment. The Zoning Ordinance establishes appropriate uses and Zoning Districts to maintain, enhance and create healthy residential, commercial and industrial areas. According to State Statute, the Zoning Ordinance and Comprehensive Plan need to be consistent with one another. SENIOR HOUSING Parkview Villa North and Parkview Villa South Parkview Villa is located at 965 40~ Avenue NE and provides housing for seniors on low incomes and/or handicapped/disabled persons. Thc complex is split into two buildings, Parkvicw Villa North and Parkview Villa South. Parkview Villa North has ninety-four (94) one bedroom units, six (6) one bedroom handicapped units. Parkview Villa North is currently 100% occupied and houses approximately 104 elderly, handicapped, or disabled individuals. Rent is based on 30% of the household's adjusted income. The waiting list for Parkview Villa North has 30 Columbia Heights residents and 37 non- residents. Parkview Villa South has thirty-nine (39) one bedroom units, two (2) one bedroom handicapped units, and four (4) two bedroom units. Rent is based on 30% of the household's adjusted income with a minimum rent of $250.00 and a maximum of $425.00 for a one bedroom unit, a minimum rent of $325.00 and a maximum rent of $500.00 for a two bedroom unit. Parkview Villa South is 100% occupied and houses approximately 50 elderly individuals. The waiting list for Parkview Villa South has 33 Columbia Heights residents and 20 non-residents. Parkview Villa North and South are managed by Crest View Management Services. In the year 2001, Parkview Villa had a turnover of 26 apartments, 4 of which were internal moves. Other changes also occurred: · Additional boilers were added to the Parkview Villa North boilers. · Replacement of air conditioning unit for 1st floor common areas. · Replacement of flooring in one apartment. · Several new appliances. · New security system installed with proximity readers and cameras. · New dining room fixtures installed in apartment turnovers (north). · Developed several new occupancy policies. · Purchased two new computers and a new printer. · Purchased new software program for applicant, waiting list, tenant, work order, and £mancial management. · Added a part time caretaker position. 4607 Tyler Street NE The four-plex, located at 4607 Tyler St. NE is also part of the Senior Housing available in Columbia Heights. The building has four (4) two bedroom apartments and currently is 100% occupied. The rent is based on 30% of the household's adjusted income with a minimum rent of $350.00 and a maximum rent of $525.00. The four-plex provides an additional affordable housing option for people ages 55 and up. The waiting list currently has 10 applicants. Building Inspections Historically, the Building Official's responsibilities include plan review and approval of permits for building, plumbing, heating, ventilating, air conditioning, signs and retaining walls. Additional tasks include inspection of construction projects to verify code compliance; meetings with contractors, architects, developers, engineers, Anoka County Health Officers, Fire Department personnel, and property owners or tenants of commercial spaces in regard to proposed new projects. The Building Official also provides damage assessment to structures by various causes including weather, fire and aging of the structure. This year, in a joint effort with the Economic Development Authority (EDA), several redevelopment property acquisitions and demolitions took place. Specific sites included 4401 Quincy and 828 N.E. 40th Avenue and 4156 Central Avenue. The 2001 construction value almost doubled from last year to $12,547,884.82. There were 671 building permits issued that generated this amount. The total building/heating/plumbing permit revenues were $229,315.01. There were additional revenues of $17,413 for miscellaneous fees such as Water Meters, Site Plans, conditional use, books, copies, etc. There were eight new single- family dwellings, three new double family dwellings, and eight new multiple family dwellings. There were l0 commercial/industrial remodels. There were nine residential demolitions, two commercial demolitions, and one Institution/Public Bldg demolition. Along with building permits, the Inspections Department processed 378 business licenses for additional revenues of $78,646.25. 2001 Permits TYPE 1995 1996 1997 1998 1999 2000 2001 Building 596 602 678 869 1254 794 671 Heating 190 217 252 261 305 290 331 Plumbing 185 177 269 214 239 207 195 Sewer 18 19 13 10 28 12 11 Water 82 60 99 112 69 37 27 TOTAL 1,071 1,075 1,31i 1,466 1,895 1,340 1,235 2000/2001 Building Inspection Permit Fees MONTH PERMIT MISC. SAC 2001 FEES FEES. FEES January $ 8,417.89 $ 788.56 None February $ 5,887.80 $ 220.00 None March $15,959.20 $1,650.18 $ 4,600 April $41,913.95 $2,258.68 $29,900 May $48,062.82 $1,291.08 $31,050 June $16,489.91 $1,029.46 $ 4,600 July $19,826.23 $1,258.03 $ 5,750 August $18,054.07 $ 976.81 None September $15,062.92 $3,736.51 $ 1,150 October $22,128.47 $ .00 $ 6,900 November $ 8,323.63 $3,235.40 None December $ 9,188.12 $ 968.18 $1,150 TOTAL $ 229,315.01 $17,412.89 $85,100 Misc. Fees include Water Meters, Site Plan, CUP, Books, Copies. Compared to 2000 TOTALS $179,488.56 ,$12,921.17 $14,300 Annually Issued For: LICENSING No. in 2001 Fees-2001 No. in 2000 Fees-2000 Beer: Off Sale I0 $ 1,500.00 11 $ 1,100.00 On Sale 3 $ 1,787.50 3 $ 1,050.00 Single Event Club 1 $ 500.00 4 Waived Carnivals 1 $ 250.00 1 $ 250.00 Christmas Tree Sales 0 0 Cigarettes 20 $ 3,400.00 23 $ 2,100.00 Contractors: Conc/Masonry 11 $ 550.00 15 $ 750.00 General 89 $ 4,450.00 106 $ 5,300.00 Heating 70 $ 3,500.00 70 $ 3,500.00 Plumbing 62 $ 3,100.00 63 $ 3,150.00 Courtesy Benches Games of Skill Gasoline Stations Liquor: Club on Sale On Sale Liquor On Sale Ltd Liquor Sunday Liquor On Sale wine Temp on Sale Wine LP Gas Sales Massage Therapy Business Massage Therapy Individual Motor Vehicle Sales Pet Shops Pool Hall Popcorn, Candy & Ice Cr Veh Secondhand Merch/Dealer Taxicab drivers Taxicab vehicles Transient Merchants/Solic Tree Removal Contractors Track/trailer rental 1(22) $ 550.00 12 $ 1,398.75 8 $ 1,160.00 2 $ 1,100.00 4 $26,000.00 1 $ 5,500.00 6 $ 1,200.00 6 $18,250.00 1 $ 100.00 1 $ 50.00 0 0 2 $ 400.00 1 $ 50.00 1 $ 100.00 0 5 $ 600.00 23 $ 575.00 19 $ 1,425.00 4 $ 450.00 13 $ 650.00 1 $ 50.00 1(22) $ 550.00 14 $ 1,369.00 7 $ 980.00 2 $ 300.00 4 $25,200.00 1 $ 5,400.00 7 $ 1,400.00 3 $ 6,000.00 I Waived 1 $ 50.00 1 $ 500.00 1 $ 100.00 2 $ 400.00 1 $ 50.00 1 $ 100.00 0 4 $ 475.00 17 $ 425.00 14 $ 1,050.00 4 $ 350.00 16 $ 800.00 1 $ 50.00 Total 378 $78,646.25 399 $62,749.00 2001 COMMUNITY DEVELOPMENT ANNUAL REPORT COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY December 31, 2001 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY COMMISSIONERS/OFFICERS NAME Gary L. Peterson Robert Ruettimann Brace Nawrocki Madame Szurek Bobby Williams Patricia Jindra Julienne Wyckoff William Elrite Cheryl Bakken Randy Schumacher Walt Fehst TITLE Treasurer/Commissioner President/Commissioner Commissioner Commissioner Commissioner Vice President/Commissioner Commissioner Assistant Treasurer Secretary Assistant Secretary/Acting Deputy Executive Director City Manager/Exec.Dix. SERVICE DATES January 8, 1996 - Present June 8, 1996 - Present January 8, 2001 - Present January 1, 1998 - Present January 8, 2001 - Present March 2, 1983 - Present January, 1999 - Present January 29, 1996 - Present January 24, 2000 - Present January 2, 2001- Present 7/96 - Present COMMUNITY DEVELOPMENT DEPARTMENT STAFF NAME Walter Fehst Randy Schumacher Randy Schumacher Mel Collova Tim Johnson Kathy Pepin Cheryl Bakken Julie Hanson Mark Nagel Shelley Hanson TITLE City Manager/Exec. Dir. Acting Comm. Dev. Director/ Acting Deputy Exec. Director Comm. Dev. Assistant Building Official Planner Assistant Building Inspector Community Dev. Secretary License/Permit Clerk(PT) Housing Assistant(PT Temp) License/Permit Clerk(PT) SERVICE DATES 7/96 - Present January 2, 2001- Present 11/99 - January 1, 2001 9/97 - Present 7/2000 - Present 8/77 - 6-5-2001 1/2000 - Present 3-2000 - 3-23-2001 4- 2001- Present 6-5-2001 - Present COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY NAME TITLE SERVICE DATES Marlaine Szurek Julienne Wyckoff Bobby Williams Gary L. Peterson Brace Nawrocki Dennis Ecklund Jr. Chair Vice Chair Secretary/Treasurer Commissioner Commissioner Commissioner 3/2001-Present 3/2001-Present 3/2001-Present 3/2001-Present 3/2001-Present 1/2002-Present COMMUNITY DEVELOPMENT DEPARTMENT TELEPHONE NUMBERS (Effective 1/1/2001) General .......................................................... 706-3670 Permits/Licenses/Inspections ........................ 706-3678 Parkview Villa Office ................................... 706-3800 Planning ........................................................ 706-3673 Fax ................................................................ 706-3671 E-Mail..communitydevelopment~ci.columbia-heights.nm.us H:XAnnual ReportsXAnnua| report200 I.wpd HOUSING UPDATE MARCH, 2002 BY: MARK NAGEL, HOUSING ASSISTANT 1. The Davis-Bacon problem with Millar Elevator continues to inch along towards completion. I am working on resolving an approximately $800 difference between my figure and theirs for the restitution payments. I expect that this difference will be ironed out soon, so that the direct payments can be made to each of the 5 Millar Elevator employees affected by the underpayments. I hope to report to you at the April meeting that the matter is complete. 2. On February 14, 2002, I had a phone conference with MHFA regarding the final figures for Columbia Heights for the 2001 First-time Homebuyers Program - 8 loans closed totaling $963,359. MHFA plans to sell bonds for the 2002 First-time Homebuyers Program in late March. If all goes well, the money should be available to Anoka County and Columbia Heights in mid-April. 3. The new 50-unit senior assisted living community, Crestview on 42nd, is still on schedule for completion this Fall, despite the recent cold and snowy weather. 4. As you know, the 2002 PHA Annual Plan was electronically submitted on January 18, 2002 after the Public Heating and approval by the EDA at their January 15th meeting. Still no word on any corrections to the Plan from HUD at this time. By the time the 2003 PHA Annual Plan needs to be submitted this October, we should be back on schedule with Plan approvals from HUD. 5. I am in the process of putting together the final program statistics for the HOME grant for Anoka County for 4401 Quincy Street. One-half of the twinhome has been purchased by a Columbia Heights couple with 4 children; however, the sale of the other one-half of the twinhome recently feel through, so they are interviewing other potential buyers. By the way, the twinhome is now nearly fully enclosed, while the 3913 Polk Street Habitat for Humanity home is completing interior work. 6. Good news for Columbia Heights residents from MHFA - the new Fix-Up Fund interest rate is now 6.5%, which is down a percent from last year's rate of 7.5%. 7. For your information, I have attached a copy of the "Rent Sampler" from GVA Marquette, which appeared in a recent edition of the Minneapolis Tribune. As of December 31, 2001, the average rent for a 1-bedroom apartment was $690/month, a 2-bedroom was $814/month, in Columbia Heights. 8. During a recent brainstorming meeting on housing programs with Marcos Warner, President of West Hennepin Community Builders, we discussed the concept of Land Trusts to keep starter homes affordable and how this concept might work in an inner-ring city like Columbia Heights. I have attached a recent article on the subject that he gave me and would like any input from EDA Commissioners pro or con before I bring it up for discussion at a meeting. 9. During February, Crestview ran several focus groups for planning their future now that they have reached their 50th anniversary. I had the opportunity to appear in one them on February 14th. As the letter notes, Crestview has a number of other activities to mark their 50th anniversary. 10. In case you are interested, the 2002 edition of"A Guide to Starting a Business in Minnesota" is now available without charge from the Minnesota Small Business Assistance Office at the Minnesota Department of Trade and Economic Development in St. Paul. The attached announcement gives you the phone numbers - after you get a copy, you'll have a better understanding of just how hard it is to start a small business in Minnesota. 11. We are still waiting for the final version of the agreement with the Housing Resource Center to be signed, so that service can officially begin on April 1st. A number of interested Columbia Heights residents have already been referred there for service. Rentsampler Here are I/~e average rents and vacancy rates for rental housing floor plans in the Twin Cities and surrounding~areas. TheJnformaUon is provided by GVA Marquette Advisors' fourth~luarter review of 1;208 rental properties containing 120,180 apartment units. InformatJod is through December. )- MinneapoBs No, of Av~. Vac. · T)'pe units re(it rate 1-bedroo'm 1-bdt. + den 2-bedroom 2-kit. +den 2,538 $522 2.8% 9,590 $748 4.3% 178 $1,277 4.5% 3,730 $1,022 3.3% 48 $1,739 2.1% · St. Paul No. of Avg. Vae. Stu~o '897 $569 1.8% l'bedroon~~*' 6,688 ... $681..2.9% 1-bdt. + den 134 $906' 1.5% 2-bedroom 5,503 $844. 2.7% 2-b~. + den 29 $1,236 6.9% 3~lN~d~oom Stu~. 1-bedroom 1-bdt. + den 2-bedroem 2-bdr. +den 341edroom 305 $1,024 1.0% 3-bedroom 74 $1,302 0.0% 4-bedroom 363 $1,273 0.3% · 2 $2.500 0.0% No. of Avg. Vac. m'ars refit rate 99 $597 3.0% Studio 3,680 $690 3.2% 1-bedroom 75 $773 0.0% 1-bdr. + den 5,078 $814 2-bed~oem 28 $909 10.79 .2-bdt.'+ de~ 772 $964 1.9~ 3-bedroom, N~ of Avg. Vac. imibl rent ~ 381 $589 18.9% 5,607 $718 3.5%' 86 $9O4 7.0% 6,786 $879 2.7% 61 $1,063 4,9% 928 $1,207 4.0% ifldud~AAo~Blaine'Cha, np~n, CokJmbta 3.bdr.+dea 23 $1,725 0.0% .,He~h_t~, ~on ~ Frldley, Mounds View, ' ~ewBr~hton, SL An81ony and ~ Lake Melu~ Arden H~s, Cottage GrOVe, Falcon Stu~o 1, 2.1_l $643 3.4% 1-bedroom 21,988 .,$746 4.9% 143dr. + den 726 $1,034 4.4% 2-bedroem 21,770 $954 '4.9% ~" 2.bdt. + den · 649 $1;215 3.4% 3.bedroom 2,077 $1,337 5.7% '34~dr.+defl 12 $1,063 8.3% Brooklyn Park, Chantmssefl, Chaska, C~stal, Eden Praide, Edlna, Excelsior, 6ol~efl Valley, Hopkins, Maple Grove, Mhneto~ke. Mound, New Hope, Osseo, Rymouth, Rk~fiek:L ,, Robbbsdale' .$odng Park, St. Louis Park and Wayzata. v~e' &horevlew, Sffiw-~ter, Vackais Heights, White Bear Lake and Wooc~j~. Studio 1.bdt, +den 2-bedroom 2-bdt. +den 464 $610 2.4%' 6,432 $753 4.2% 385 $896 4.9% 8,571 $897 4.0% 228 $1,240 4.8% 1,512 $1,164 3.6% 213 $1,509 3.3% Im=ludes: A~ple Valej, Bums~lle, Eagan, Farm- hgton, lnver Grove Heights, Lakeville, Lil~, Mendota Heights, Prior Lake, Rosemount, Savage, Shakepee, South St. Paul and W~st St. Paul Source: Apartment Wends, a puba:aflon of GVA Marquette Advisors. Phon~ 612-3.35-8888 C tvB ness : . The Basmess Journal ~n~"al Home: Minneapolis/St. Paul: Contents: In Deoth: Commercial Real Estate Go to A.r.c. bJY_~ Detailed Search Instructions Sign up for ~1~1 Breakina Ne~s E_ .x.c!.usive Reports I nd__.~~u o~ In_D.e..pth: Commercial Real Qpi_ni_on C_.~_lenda r · .P_r~grvina afford.~J~i!itv kl~_C.o_~On g-term r~ Ne_w..:e~1313oloo~ajOs securit~ efforts C.!ose uo on Edward Kodet J~. Pri_n_t_~ble !~ E!~a. il stp?/ v_e. cs.ion [] I ..G...o. to ~6 Industry 3ournals [] Cb e c k .~_~.u_tJ _T_~d aY_'s b..r.e a..k i n g In Depth: Commercial Real Estate From the 3anuary 18, 2002 print edition Preserving affordability Land trusts aim to keep house prices down for a century to come Scott D. Smith Staff Reporter Using iand trusts as a way to keep starter homes affordable is an approaCh gaining momentum fxom St. Paul to Minnetonka,- with neighborhood grouPs 'm Minneapolis also getting behind the concept. Most land trusts strive to create home-buying, opportunities for people making less than the median area income -- say parents with a couple of kids and a total income of about $44,000 a year. Housing in this price range is also known as "work-force housing," meaning homes that a person making $12 or $13 aa hour could afford. "I think you will see land trusts becoming more important to solving the affordable housing crisis," said Jan Calhson, interim executive director of the West Hennepin Affordable Housing Land Trust (WHAHLT). WHAHLT is a recently created land trust designed to serve suburban Hennepin County. The nonprofit organization strives to keep startup houses affordable by acquiring land, thus taking it out of the speculative market. It, Iike most land BBI! BOOK OF US'~, ............ 2~i.C; Book.p( Li Top businesse contacts Print. .S, u__b.s..c_rjpt i. Get the compe edge from exc business cover Hot Leads Earliest info o businesses, homeowners Sa .I _e_s_ P rp_s_pe c. tj Center Real info, real opportunities. H i r_e_T_w i__~.n. Fill an opening job Preserving affordability - 2002-01-21 - CityBusiness: The Business Journal trusts, then sells the house to a homebuyer who meets certain economic criteria. The nonprofit keeps the title to the land and leases it to the homebuyer. WHAI-ILT is starting small, with seven houses in Minnetonka, but will get bigger, Callison said. It's set to acquire its first house in a couple of months and akeady has several people waiting to purchase it. Several suburbs, including St. Louis Park and Richfield, have already expressed a desire to use the nonprofit as a way to create affordable housing in their communities, she said. Four Minneapolis neighborhood groups have started an initiative to set up a land trust designed to serve the City of Lakes. Lyndale Neighborhood Development Corp., Powderhom Park Neighborhood Association, Powderhom Residents Group and Seward Redesign are studying different models and hope to have a formalized plan this summer. Such trusts weren't set up in Minneapolis previously because until recently there was a good supply of affordable housing in the city's central neighborhoods, said Cara Letofsky, project manager for The Minneapolis Community Land Trusts Initiative. But now, with increasing gentrification in the city and rising property values, the idea of land trust-owned homes is gettingl a positive reception from the activist community and Minneapolis Mayor R.T. Rybak's administration, Letofsky said. "The mayor is very interested in implementing (land trusts) in Minneapolis," said David Fey, deputy mayo. r, of .Mi,_ml. ea, po.l!s. The mayor's interest is based on preserving me city s suosmy in affordable housing, he said. .. Keeping "affordable" affordable for 100 ye:irs Land lxusts are creating a lot of interest now as a way to keep the housing affordable for a long period of time and to preserve the initial subsidy that makes it affordable, said Gregory Finzell, executive director of The Rondo Community Land Trust. Rondo, in St. Paul, is a grass-roots organization i.nc.o.~orat.e~ in 1993. The group, which focuses on the Summit?.m,v,et~s~ xty and Lexington-Hamline neighborhoods, has comptetea t ~ houses and has plans for five more in 2002. "There's a lot of money being spent on affordable housing and people are looking to maximize these resources," said Bob Streetar, Minnetonka community development "' coordinator. '" -~,rving affordabihty - 2002-01-21 - CityBUsiness: The Business Journal Page 3 of 4 The city of Minnetonka seeded WHAHI.,T with a $30,000 grant, dedicated $20,000 each for seven houses, and has offered the nonprofit a no-interest revolving line of credit for buying houses. Given the expense of creating affordable housing, these investments make sense for Minnetonka, Streetar said. Beginning in 1995, Minnetonka invested $5.4 million dollars to reduce the sale price of 150 town houses to an affordable level, but at~er five years the city found that the units are back on the market at prices no longer considered affordable. WI-IAHLT's first home is a three-bedroom house with wood floors and two fireplaces. It has an appraised value of about $180,000, including a land value pegged at around $60,000. WHAI-ILT will sell the house for about $120,000. Though the value of the house will appreciate over the years, the land value will forever be removed from the cost equation. The buyer's take also is capped at 35 percent of the profit from the sale of the house. A national trend The growth of housing by community land trusts has been steadily increasing since the early '90s, according to the Springfield, Mass.-based Institute for Community Economics Inc. The organization reports that more than 120 land trusts operate in 31 states and the District of Columbia and own more than 5,000 units. The model is well-known on the East Coast and becoming increasingly visible around the country, said Missy .Thompson, director of the Minnesota Fannie Mae Partnership Office. In Minnesota, the concept has gotten the most traction in Rochester and Duluth. "It seems to be a concept that has caught fire here in Minnesota," said Thompson. But the land-trust model is not without its challenges. "The biggest problem is it is very difficult to operate on a very significant scale," said Deidre Schmidt, vice president at Minneapolis-based Brighton Development, which unsuccessfully attempted town-house projects with Rondo in the past. It can take a significant amount of work to realize one or two projects and "that kind of work gets swallowed up in this wave of need," Schmidt said. Preserving affordability - 2002-01-21 - CityBusiness: The Business Journal Another common criticism of the model is that it hurts low- income buyers by limiting the wealth they can accumulate through home ownership. For a model to be successful, it must allow homeowners to make some money when they sell the house, Schmidt said. Finzell of Rondo defended the equity caps, saying the homeowners do get some financial rewards, and "but for the land trust these people wouldn't be in affordable housing." Another concern is that the model creates a middleman so to speak -- the nonprofit - that needs the resources and stability to exist for 100 years. An issue within the lending community is that in a mortgage, when a homebuyer defaults, the lender can resell the house at market rates to recover the debt. National land-mst organizations and lenders are working to prevent such a loss of affordability in cases of foreclosure. "I think there's momentum for it, but it's a mixed bag," said Rebecca R6m, a partner at Faegre & Henson in Minneapolis who specializes in affordable housing and has been studying land trusts on behalf of her client, the Greater Minnesota Housing Fund. Scott D. Smith can be reached at (612) 288-2107 or ssmith~_,bizjournals, com C°pyright 2002 American City Business Journals Inc. , Click ['or permission to reprint (PRC# 1.1645.535467) ~1. Printable' [] Email story [] Check it outL_Todav's ve~j.o_n [] b r_ea k. in_g_p_ews Home I CQntents I Searql3 I E~de~t I S_ojutipns &.Servic.¢.~ I C_oILILact Us I Ill/j.o_grnals_.co_Lrn_ I bCe_nt.r, aJ ~:om CItyBustness emalh twincitiesfo3biziournals.-c;Orn All contents of this site © American City Business Journals Inc. All rights reserved. Pr v_~cv _PoJic¥. I US~.r.Agree!B~ .O © Crest 4444 RESERVOIR BLVD NE COLUMBIA-HEIGHTS, MN 55421 763.782.1611 FAX 782.0857 WwW, CRESTVlEWCARES,ORG February 4, 2002 FEB - ~ 2&~2 Dear Friend of Crest View, Greetings from Crest view~ As we celebrate our 50* anniversary in thi,~ year of 2002, we are very pleased to make thc following announcement. We have the good news to share with you that we are one of the recipients of a Transition Planning Grant from~e State of Minnesota~ These grants were funded during the last legislative session and Crest View submittal a gram application as part of a competitive - process. We have received fundh8 that allows us to,hold several focus groups, interviews, and a planning retreat. You are cordially invited to attend a focus group on Thursday, February 1,4, in the Royce Place Board Room from 3:00 p.m_ to 4:00 p.m[ Patricia McCullou~ will be the facilitator for the group. Thack you, in advance, for your particilm~m We,truly appreciate your input as we continue'to plan. ' Blessings~ Chief Executive Officer P.S. ~lease rememt~'to mark your c. al~_'_~s for Crest View's 50* mmivemaxy gab to be held on October 4n and Crest View's 50n anniversary. Worship. Service to be held-on OcWber 13~. CREST VIEW IS AN EQUAL OPPORTUNITY EMPLOYER Guide to~ Startin~ Business ~p~~ntT: '*"'t~Xg a Res°Urce Director' Of Licc~ud :'j~e mae-~fl "~'' bom: ,.timely ~hg~omprehens)ve; ~uide iff~Ot ;nv OnW~ubi~t:' --'~ -::; ':-.~.e-<' .. e~e tov~fl u~eswill ap~ P .' 'Omer 'phblica~°n~?'offe~ Assistance. Office, °ffer::more'.f~~, -C marion;; o~:: S~ific::topics. like !:~. ~mplOY~nt' la~V,~'fran.c, hi:smg and-~cunu~ -'" :of~rifigd:";Fr~(~" COPies>,°.f.- ;. startingl, a,i,B-usiness'.' in,; Minnesota .v :can...~ ' i *,,~i~." f~o"-':.~the' DTED-small-Business ', -.' ls~ce· o~c~'s,00.: Mcuo,-Sqm?, :Ass ,. :' ,,, .'-:. . .. -'-, -~ , .~ ~-* ~. - ~,... .. . "- ...... -~liC~;'l~;,.,-St,.Paul. Phone.--Ls:.. o.~ · S~vcntli.- , · ~.- , . ..~..: .... -.., .:..,,:;: ! PARKVIEW VILLA RESIDENT COUNCIL MEETING MINUTES MARCH 11, 2002 The meeting was called to order at 7:00 p.m. Anita was not able to attend for the Management Report and gave the report to Bill Cross to read. (See attached) Jackie Ovshak gave the Treasurers report. Volunteer is needed for VFW Bingo and Bingo Nights Chair. Leo Mullenmaster volunteered. Muriel McClellan gave the Sunshine Report. She sent a get well card and a gift of $5.00 to Jackie Rushenberg, Ron Schumacher, Irene Hinks, Carroll Heinrichs and Marion Johnson. John Super, Welcome Chair, welcomed our new residents, Anne Peterson, Richard Almar and Violet Tabb. Dorothy Keller, said they still have cookbooks left for $4.00. Marion Johnson gave the Entertainment Report. About the 90th and over Birthday Party to be held Wednesday, March 13th at 6 p.m. in Community Room A and entertainment in Community Room B will be the "Lady Slippers" at 7 p.m. Paul Gotter gave the Kitchen Chair Report. Volunteers are needed to help out in the kitchen. Don Kemp and Vera Hansen volunteered. Paul also thanked Dorothy Shaffer and Irene Sufka for helping him. Ida Drew and LeRoy Schmitz names for $5.00 and Ardell Johnson and Drew Barb Camp for $5.00. LeRoy Schmitz moved to adjourn. Ida Nelson seconded the motion. Meeting adjourned at 7:40 p.m. Respectfully Submitted, Leo Mollenmaster Resident Council Secretary 2002 RESIDENT COUNCIL MEETING March 11,2002 I am sorry I could not make it to this meeting. Unfortunately, I am feeling under the weather with a cold. 1. We received our HUD physical inspection score for parkview villa north. Out of a possible 100 points we received 96 points. Which is good considering how thorough of an inspection it was. I have made work orders up from the inspection report and all items should be fixed shortly. 2. I also want to mention that at the last EDA meeting several people from the public ask the commission if their was any truth to the rumor that parkview villa was going to be sold. The city manager along with several commissioners stated that no decision had been made about parkview villa. The EDA was asked by the city council to look at the capital improvement needs at parkview villa south and to look at the financial performance. Several board members expressed their continued commitment to the senior citizens of the community. So the short version is that the city is just looking at options but has not made any decisions and will not make any decisions until they have all the facts. So don't worry needlessly as nothing may change for you as a tenant. 3. Don't forget the fire dept. will be here for their annual inspection tomorrow. 4. I will be on vacation the rest of the week and William Jones from Crest View Corporation will be here in the afternoons to answer any questions that may arise. Memo To: From: SubJect: Date: Randy Schumacher City of Columbia Heights Elizabeth Diaz ~'~ City of Columbia Heights TIF District K2 March 1, 2002 Randy: Redevelopment Tax Increment Financing District K2 was adopted on September 28, 1989. This district first received increment in 1995. This district was financed on a Pay as You Go basis. Financial Statement Reporting Initially, all tax, increment was accounted for in the Tax Increment Bond Debt Service Fund (DS ~F).. Transfers Were Periodically made from this fund to''other tax increment' bohr'debt ~rvice ftifids fo? bond principal-and interest. A separate debt service fund' was established to aCCount' for' this~distfict:~n~ i 99~; the Multi Use Redevelopment Plan DSF. Also in 1997, $102,302 whs 'tia]iSferred out of this dei~t service fund to the Tax Increment Bonds DSF. This transfer caused a $100,254 deficit fund balance and a $99,416 liability due to the Tax Increment Bond DSF. The recently adopted resolution approving an interfund loan in the amount of $109,852 was the amount due from the Multi Use Redevelopment Plan DSF to the Tax Increment Bond DSF in 1998. State Auditor Reporting The HRA entered into a redevelopment agreement with Frank and Mary Jo Miske in 1994. This agreement provided for tax increment reimbursement to the developer in the amount of 95% of the available tax increment. In addition to this, the City paid $64,299 in land/building and $41,699 in site improvements. The 1999 reporting form showed that the district balance was ($16,984). District K2 Funding Source The funding source for District K2 appears to have cOme from tax increment receipts. It does not appear that funding other than City funding_ was receiVed 'for this district2 N.'o transfers in t° the Tax Incr&ment Bonds DSFt was received from 1995 t6 1997; when'the~Mulfi established:: No other tranfers ih br Out/~/fisi ma-de. Or"reC~iv~d b~' ~he 'Mtiilfi Lise R'ede(~[~pn~eht: P,I~ DS,F from 1-998 ro 2000. As Of De?i;nber .3 f,:2OOO;~ihi~:di'~tri~t waslow~d tb'~the:Tfi)eln6i-eni~t:Bofld~'DSFi- i'z .:7,; ~....,v':-~:~::,.c..:J:,.:.'.:,. 3 ':: :! ~;~'i; ~: ,'~: 5:: .:_:::::~: :~ ~_~: ,' Please contact me at 651:697-8519 with questions.