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HomeMy WebLinkAboutEDA AGN 10-15-02CITY 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 October 15, 2002 The following is the Agenda for the regular meeting of the Columbia Heights Economic Development Authority (EDA) to be held at 6:00 p.m. on Tuesday, October 15, 2002, at Parkview Villa, Community Room B, 965 40th Avenue N.E., Columbia Heights, MN 55421 The EDA does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its accommodation will be provided to allow individuals with disabilities to participate in all EDA services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the EDA Secretary at 706-3669 to make arrangements (TDD 706-2806) for deaf or hearin~ impaired only. CALL TO ORDER/ROLL CALL. PLEDGE OF ALLEGIANCE. 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 September 17, 2002. 2) Financial Report and Payment of Bills. a. Financial Statement for September, 2002. b. Payment of Bills for September, 2002. MOTION: Move to approve Resolution 2002-15, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statement for September, 2002 and approving payment of bills for the month of September, 2002. ITEMS FOR CONSIDERATION. 1. EDA Bond Fund Fee- Bill Elrite 2. Reinstate Patricia Jindra, as Liason for Resident Council Meetings- Bob Streetar MOTION: Move to designate Patricia Jindra as the EDA's representative to the Resident Council Meetings to record the minutes and report to the EDA. 3. EDA Holiday Gathering/Dinner- Robert Streetar ADMINISTRATIVE REPORTS Report of the Deputy Executive Director -Robert Streetar. Report of the Executive Director - Walt Fehst. ADJOURNMENT Walter R. Fehst, Executive Director mission of tile Co£um6ia Yfeiofits ~conomic (Deve[opment ~uthority is to proviaCe financia[ anar tecfinica£ assistance anaC resources to resic[entia~ commercia~ ancF inarustria[ interests to promote tiea£tfi, safety, we[fare, economic aCeve[opment anar reaCeve[opment. H:\edaAgenda2002\10-15-2002 THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OF SEPTEMBER 17, 2002 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimann at 7:43 p.m., Tuesday, September 17, 2002, in the City Hall, Conference Room 1,590 40th Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Robert Ruettimann, Patricia Jindra, Gary Peterson, Julienne Wyckoff, and Bruce Nawrocki Commission Members Absent: Marlaine Szurek, Bobby Williams Staff Present: Walt Fehst, Executive Director Bob Streetar, Deputy Executive Director Randy Schumacher, Community Development Assistant Cheryl Bakken, Secretary CONSENT AGENDA Approval of Minutes Move to adopt the minutes of the August 20, 2002, regular meeting as presented in writing. Financial Report and Payment of Bills Move to approve Resolution 2002-13, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for August, 2002 and approving payment of bills for August, 2002. MOTION by Nawrocki, second by Jindra, to adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION RESOLUTION 2002-14, ADOPTING THE PROPOSED 2003 BUDGET AND LEVY Streetar stated the EDA Budget is funded by the Levy and represents an increase of 2. 6% or $3,554 above last year's levy of $137, 015. The Levy costs a homeowner with the average taxable market value home of $116,200, $21.07 annually or $1.76per month. In the revenue section Streetar indicated he inserted a revised sheet for review. Under expert and professional services the large amount reflects all attorney and financial agencies, which will be necessary with the redevelopment projects. Ruettimann recommended, City Councilmembers should not reduce the Levy and Budget for the Community Development Department in the future, but, should take into consideration the redevelopment projects coming up and the staffing required to accomplish the goals. MOTION by Peterson, second by Wyckoff, to waive the reading of Resolution 2002-14, there being ample copies available to the public. All ayes. Motion Carried. MOTION by Peterson, second by Wyckoff, to Adopt EDA Resolution 2002-14, being a Resolution of the Columbia Heights EDA Adopting the 2003 Budget of $140,569 and Levy of $140,569 and recommending this Budget and Levy to the City Council for approval. All ayes. Motion Carried. Other Business Ruettimann asked the Board to have dindra reinstated as EDA Liaison for the Resident Council meetings and that she should also receive the meeting per diem again, if the State Statute permits it. Streetar will check into the State Statutes prior to the next HRA and EDA meetings in October and will have staff put the item on the October agenda. Ruettimann asked what the status of his request to obtain a map of the TIF redevelopment areas in Columbia Heights and staff meeting with the City Council on the funds the City owes the EDA from the Crest View rewrite and some other administrative funds that are due to the EDA for funding the project. Economic Development Authority Meeting Minutes September 17, 2002 Page 2 of 2 Streetar stated staff has received a map and will be getting a copy of it to the commissioners. Fehst stated he would bring up the funds due to the EDA at the next City Council meeting and report back. ADMINISTRATIVE REPORTS COMMUNITY DEVELOPMENT MONTHLY UPDATE Streetar stated staff, will be providing the enclosed Community Development Update each month to give an update of all the projects the department is working on. Staff is focusing on: 1) Industrial Park Redevelopment area; 2) 4t7h and University Redevelopment; 3) 37~h and Central; and 4) 39'h and Central. Staff has received a significant amount of interest in both the Mady's site and 39~h and Central properties. Meetings were held with each developer to receive their ideas for the site. Staff will plan to meet with the City Council to discuss their ideas. The first question the developers asked was what does the City Council what to see on the site. The Industrial Park Redevelopment area is moving along well, staff is developing base maps and collecting documents necessary for the project. Peterson felt staff was also working diligently on #5 Improving the Housing Stock and g6 Increasing Tax Base in Columbia Heights. Peterson commended Streetar and his staff for their hard work on meeting the goals set by the City Council and EDA. 325 Summit Street Schumacher passed out a calendar and a copy of the bidding packet for the sale of the City owned property at 325 Summit Street to the Board for review. It was determined that an authorization for bids agenda item should go to the City Council meeting on Monday, September 23rd and the sale would be advertised in the Focus and Star & Tribune newspapers starting Thursday, September 2~h, if authorized by City Council on September 23ra. Staff has already received many inquiries on purchasing the home. Streetar stated staff will do the following steps to process the sale of the property: 1) City Council authorize staff to go out for bids; 2) receive and review the bids on October 16~; 3) October 21st the bids will go to the worksession; 4) October 28th, will be the first reading; 5) November 12th, will be the second reading; and 5) there will be a 30 day waiting period until the sale is final. Nawrocki suggested staff put up a For Sale sign on the property to help advertise. ADJOURNMENT President, Ruettimann, adjourned the meeting at 9:09 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary HSEDAminutes2002\9-17-2002 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: October 15, 2002 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Bob Streetar BY: DATE: October 10, 2002 BACKGROUND: The bound Financial Report for September 1, 2002 Check Listing (green sheets), and draft Resolution 2002-15 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 September 30, 2002. The Check History shows each fund with an expenditure history during the month of September, 2002. The total disbursements by fired are shown at the top of the listing. RECOMMENDATION: Staff will be available to answer specific questions. If the report is satisfactorily complete, we recommend the Board take affirmative action to receive the Financial Report and approve the payment of bills. RECOMMENDED MOTION: Move to approve Resolution 2002-15, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement for September, 2002 and Payment of Bills for the month of September, 2002. EDA ACTION: }{: \Consent2002 \Sept emberFinRep2002 EDA RESOLUTION 2002-15 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR SEPTEMBER, 2002 AND PAYMENT OF BILLS FOR THE MONTH OF SEPTEMBER, 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 September, 2002 and the list of bills for the month of September, 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: NAYS: Robert Ruettimann, President Attest by: Cheryl Bakken, Secretary H:\Resolutions2002\EDA2002-15 CITY OF COL UMBL4 HEIGHTS DATE: TO: FROM: OCTOBER 3, 2002 WALT FEHST CITY MANAGER BOB STREETAR WILLIAM ELRITE/ FINANCE DIRECTOR CITY ADMINISTRATIVE FEES ON REVENUE BONDS At the last EDA meeting there was a request for information regarding the administrative fees charged on revenue bonds sold by Crest View and Columbia Park Clinic. This is a process that the City put in place in 1998 to compensate the City for their services and liability exposure related to non-City revenue bond issues. To account for this revenue, the City created a special revenue fund. This fund is also used to account for the rental fees we receive for the cellular antennas on the high-rise and the water tower. Since its inception, this revenue fund has generated $447,149.53 in revenue. During this time period the expenditures in this fund have amounted to $148,162.87 leaving a current fund balance available of $298,986.66. I believe one of the concerns in requesting information on this revenue was related to the EDA board's involvement in the disbursement of this revenue. Based on this, I have attached a summary report showing the breakdown &revenue received and the detail listing of expenditures. As you can see from the list of expenditures, the majority of the items were related to the EDA and Community Development. If you would like any additional information regarding this fund, please let me know. WE:sms 0210032CM Attachment City of Columbia Heights Special Revenue Fund Summary Information Period Covered January 1, 1998 through September 30, 2002 Revenues Administration Fees-Bond Issues: Antenna Site Rental Other Revenues (Sales of Remodel Book) Investment Income: Total Revenue 221,089.51 190,717.00 625.00 34,718.02 447,149.53 Expenditures 1 ) Dishwasher for Murzyn Hall (1998) 2) Remodel Handbook (1998) 3) Demographic Study w/City of Fridley (2000) 4) Interest Rate Subsidy MHFA Community Fix-up (2000) 5) Interest Rate Subsidy MHFA Community Fix-up (2001) 6) GMHC Res Home Improvement Loan Program (2002) 7) 1/2 Underground for Central Avenue Project Xcel (2002) Total Expense Funds Available at 9~30~02 7,530.87 5,000.00 24,132.00 25,000.00 25,000.00 7,500.00 54,000.00 148,162.87 298,986.66 Prepared 10/2/2002 Special Projects Fund/Summary COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: October 15, 2002 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: 2 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Reinstate Patricia Jindra as Liason for BY: Robert Streetar BY: Resident Council Meetings DATE: October 8, 2002 BACKGROUND: At the September EDA meeting, Commissioners asked that Patricia Jindra be designated as the EDA's representative to the Resident Council Meetings to record and report to the EDA. RECOMMENDATION: Staff recommends that the EDA designate Patricia Jindra as the EDA's representative to the Resident Council Meetings to record the minutes and report to the EDA. RECOMMENDED MOTION: Move to designate Patricia Jindra as the EDA's representative to the Resident Council Meetings to record the minutes and report to the EDA. EDA ACTION: h:\consent Form2002~EDA Reinstate Jindra as Liason final COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: October 8, 2002 AGENDA SECTION: Administrative Reports ORIGINATING EXECUTIVE NO: 3 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: EDA Holiday Gathering/Dinner BY: Char Bakken BY: DATE: October 8, 2002 BACKGROUND: It is the Holiday time of year again! Commissioners are asked to determine a place to have the annual EDA dinner. The dinner will be on December 17~h. Please have in mind any unique ideas you may want to share. This is always a pleasant social evening to share with Commission members and spouses to acknowledge their community service. A~achment EDA ACTION: h:\consent2002\EDA Holiday Gathering-Dinner December 2002 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 Work Session P & Z Meet- ing Library Mtg 7p.m. 8 9 10 11 12 13 14 City Council Meeting 15 16 17 18 19 20 21 Work Session 5:30pm EDA /HRA Charter Com- mission Meeting & Telecom Dinner? Corn Mtg 22 23 24 25 26 27 28 City Council Christmas Christmas Meeting Eve Day 29 30 31 New Year's Eve iiii~ Iii ~,. Il lll IIII II , ' IIII TO: FROM: DATE: SUBJECT: EDA Commissioners and HRA Board Members Robert Streetar, Director Randy Schumacher, Community Development Assistant Mark Nagel, Housing Assistant 10 October 2002 Community Development Monthly Goals Update This memorandum provides an update of the progress regarding the community development goals the City established in January 2002, as well as other community development activity. Goals Priority 1 2 3 4 5 6 7 8 9 10 10 Goal Industrial Park Redevelopment Evaluate development options for Lominaki Park 40~h and University Redevelopment Evaluate options for Parkview Villa Improve Housing Stock Increase Tax Base 37~ and Central Redevelopment 39~ and Central Redevelopment Promote Columbia Heights 40m and Jackson and Van Buren Redevelopment (Tie) 4201 Central Redevelopment Industrial Park Redevelopment The Koegler/United Properties Industrial Park Redevelopment Plan is well into the information collection stage. A Phase I Environmental Analysis will be conducted on each one of the 55 properties in the Industrial Area. The Maxfield Research Company is in the process of collecting data for the Housing Market Analysis that will determine market demand for the area. The GIS database of all physical data has been forwarded to the consultant for review. City staff has collected data from the property files, laserfische, and microfiche for the consultant's evaluation. The first check point will be a joint worksession with the City Council and EDA and is scheduled for November 13, 2002, beginning a 7 p.m. in Conference Room 1. These decision points will allow the City to become knowledgeable about redevelopment issues, opportunities, and constraints and to allow adjustments in the scope of work based on the findings in the completed task. 40th and University Conoco Station The final soil analysis needed for the MPCA was completed on October 2, 2002. After the findings are forwarded to the MPCA and the spill file has been closed, a final 1 transfer to the City will take place. Estimated time of closing is the week of November 25th, 2002. 325 Summit Street To date, twelve interested parties have picked up bid packets for the sale of 325 Summit. All bids are due on October 16, 2002, at which time they will be opened and forwarded to the City Council for consideration at the October 28~h meeting. Evaluate Options for Parkview Villa and 4607 Tyler 4607 Tyler Street Staff has negotiated a preliminary agreement for sale to Affordable Suburban Housing Partnership. Staff will bring the proposal to the HRA meeting in November. Disposition of Parkview Villa North Staff will be meeting with HUD soon to discuss the disposition of Parkview Villa North (PWN). Disposing of PWN means that the City of Columbia Heights would transfer its responsibility for the building to another party. Other parties could include the Metropolitan Council, the Minneapolis Public Housing Authority or a private party. In the event of the transfer, residents would still pay the same rent and receive the same level of service; this is because HUD sets the management standards regardless of who is responsible. Improve Housing Stock Home Improvement Fair Staff met with the "Rising to New Heights" group on October 8. This group is comprised of City residents and City business leaders. At staff's initiation, the group indicated they would be willing to take the lead on setting up a Columbia Heights Home Improvement Fair. The fair brings residents, local contractors, builders, architects and lenders together to facilitate home improvements and remodeling, which strengthens the housing stock and promotes local business. While it is early in the planning stage, the fair is expected to occur in early spring 2003 on a Saturday of Sunday. Housing Programs Seven (7) housing rehab loans totaling $77,194.36 were processed by the Center for Energy and Environment during September 2002. The Discount Loan Program has been extended from the end of October to the end of the year. Please find attached a summary of the City's housing programs to date. Three (3)loans under the Rehab Incentive Program, administered by the Greater Metropolitan Housing Corporation, totaling $43,053 were closed in September 2002. Through September 2002, the HRA's housing rehab programs have been averaging about 12 loans per month, or about $115,000 per month. The programs have leveraged about $8.50 in private dollars for each public dollar invested. This is a very good return on our investment in the City's housing stoCk. Another 35 Columbia Heights residents received home improvement information; help with developing specifications for projects and assistance in reviewing contractor proposals during the month of September 2002. An effort is underway to determine 2 how many residents requesting information eventually use the loan programs. This would enable the HRA to better estimate how many matching dollars will be needed each year for housing rehab programs. Three (3) homes have been purchased to date in Columbia Heights under the MHFA First-Time Homebuyer's Program totaling $446,313. With about 6 months to go, the HRA is about halfway to its goal of $1 million spent in Columbia Heights under this program. Habitat for Humanity The three Habitat for Humanity homes are now substantially complete, as per the Development Agreement. The home on 3913 Polk Street NE closed on September 26 - a VERY happy family - and should be moved in by the time you read this update. The twinhome on Quincy Street now has Purchase Agreements on both homes with closings expected in November. Staff will be evaluating whether or not the twinhome is substantially complete with a "walk-through" in mid-October - if OK, then staff will sign off on the Development Agreement terms as being met. Private Sector Interest in Sinqle Family Homes Staff continues to receive phone calls from developers looking for single-family homes to purchase, rehab, and sell. This month, staff acted as a "broker" for three blighted homes- 1 on Gould Street, 1 on Cleveland Street, and 1 on 4th Street. It will be interesting to see if these developers follow-through. If they do, then staff may work off the list of 236 identified blighted homes to see if we can get them cleaned up. A real positive trend in the Heights, because it will get these homes back to standard and raise tax base at the same time. Staff will keep you posted. Increase Tax Base Business Revolvinq Loan Fund The BRLF will soon have an agreement with US Bank, which is scheduled to begin January 1, 2003. US Bank will be handling the loan processing, accounting, and marketing of the program, which help increase visibility in the business community. Mr. Bob Trewartha, a business professor at the Minnesota School of Business, has applied to become the fifth and final member of the Loan Review Committee. Thanks to the Finance Department for locating funds for this program. 37th and Central Redevelopment Three separate issues are being addressed at the 370~ and Central Redevelopment Area: 1) Bids for the removal of City owned single-family homes at 3718 and 3722 Central have been obtained. Before award, the City must complete a process of qualifying these homes, as structurally substandard for our Redevelopment Project. This should be ready for EDA consideration in November. 2) Staff has reviewed two proposals with the owner of Puerto Vallerta for the redevelopment of this entire site. His architect, Blumental Inc. will be presenting pro formas in the next two weeks for staff consideration. The potential acquisition of 3710 Central Avenue is moving ahead. Staff has met several times with Mr. Beecroft and has negotiated acquisition details around the 3 Watson Appraisal. Staff will have a firm proposal for City Council consideration by the end of the month. 39th and Central Staff is puffing together materials as part of a RFQ/RFP package to send to prospective developers interested in redeveloping this site. Staff will present this package to the EDA at their December or January meeting for review. Staff intends to solicit RFQ/RFP proposals from interested developers. Interested developers will present their qualifications and redevelopment plan for the site to the EDA in the eady spring. Once the EDA has chosen a developer, the City will grant the developer an exclusive to develop the site. Other Community Development Activity Parkinq Ramps Negotiations have begun with Columbia Park Medical Group for an extension of their lease agreement on the parking ramp behind their clinic on 40th and Central. The good news for city tax base is that they want a 10-year lease, which means that they want to remain in their present location for the next decade. As for the terms of the lease agreement, the main "sticking point" is their desire to lower their 80% share of the maintenance costs. We hope to have an agreement to the EDA by the end of the year; meanwhile, both sides have agreed to maintain the terms of the present agreement. Little Voyagers Montessori School Staff continues to work with Little Voyageurs Montessori School on their long-term expansion plans. They have received a lease extension from St. Timothy's Lutheran Church until the end of next year, so any immediate concerns about not having a place are on hold. They have said that would like to be part of any redevelopment plans that include senior housing for their intergenerational programs. Annual PHA Plan The PHA Annual Plan for 2003 is complete and has been advertised for the public hearing, and awaits HRA approval on October 15th for submission to HUD; along with revisions to the 2000, 2001, and 2002, CFP's to allow the re-roof of Parkview Villa North. Parkview Villa Re-roofinq Proiect Staff completed the re-bid process for Parkview Villa North. Bids will be considered for approval at the HRA October 15th meeting. Work will begin on or about October 28th. This will keep the penalty for not having the funds allocated on time is about $10,000, which will be taken out of the 2003 budget. Kmart Upon the Mayor's request, staff contacted Herbergers in the Apache Plaza to determine if they would be interested in moving to the vacant Kmart. Herbergers indicated they are unsure when they will have to move, because of the redevelopment, but would consider that option. Herbergers indicated they would like to stay in the area. They currently have 38,000 sq. ft. and would like 65 - 70,000 sq. ft. They vacant Kmart is 230,320 sq. ft. 4