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HomeMy WebLinkAboutEDA AGN 06-17-03CITY 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. coht.,bia-heights, mn. us EDA COMMISSIONERS Don Murzyn Jr. Patricia Jindra Julienne Wyckoff Bruce Nawrocki Bobby Williams Tammera Ericson Bruce Kelzenberg ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING 6:30 P.M., TUESDAY, JUNE 17, .2003 CITY HALL, CONFERENCE ROOM 1 AGENDA 1. CALL TO ORDER/ROLL CALL. 2. PLEDGE OF ALLEGIANCE. o 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.) Ao MOTION: Move to approve the consent agenda items as listed below: 1) Approve EDA Meeting Minutes for May 10~ 2003. MOTION: Move to approve the minutes of the May 10, 2003 regular EDA Meeting as presented. 2) Aoorove the Financial Report and Payment of Bills MOTION: Move to approve Resolution 2003-08, a Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statement and payment of bills for the month of May, 2003. ITEMS FOR CONSIDERATION A. PreliminarY Development Agreement MOTION: Move to Approve the Preliminary Agreement between the Columbia Heights Economic Development Authority (EDA) and the New Heights Development, LLC (the Developer), and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. 5. ADMINISTRATIVE REPORTS 6. ADJOURNMENT Walter R. Fehst, Executive Director H:\edaAgenda2003\6-17-2003 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 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 MAY 20, 2003 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President, Don Murzyn, Jr. at 6:35 p.m., Tuesday, May 20, 2003, in the City Hall, Conference Room 1,590 40th Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: Staff Present: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg Walt Fehst, Executive Director Bob Streetar, Deputy Executive Director Randy Schumacher, Community Development Assistant Cheryl Bakken, Community Development Secretary CONSENT AGENDA Aooroval of Minutes Move to adopt the minutes of the March, 2003, regular meeting as presented in writing. Financial Report and Payment of Bills Move to approve Resolution 2003-07, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for the months of March and April, 2003 and approving payment of bills for March and April, 2003. MOTION by Wyckoff, second by Jindra, to adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION Preliminary, Development Agreement with Haugland Real Estate Company Schumacher stated the proposed Preliminary Development Agreement will grant the developer 120 days to secure options for the site at 40th and UniversitY. Schumacher then introduced Gene Haugland, President, and Paul Reinke, Senior Director of Haugland Real Estate Company and Mike Kraft of HTG Architects. Haugland stated he worked with the Opus Corporation prior to starting Haugland Real Estate Company in 1996, and has purchased and developed the following projects: 1)In Edina- Interlachen Corporate Center, Londonderry Shops, and Edina Medical Center; 2) In Oakdale- Western Bank and Oakdale Tech Center; 3) In Shakopee- Shakopee Distribution Center; and 4) In Crosslake- Pine View Townhomes (senior housing). At 50th & France they purchased and renovated all of the buildings in the block area, including the old Edina Theatre. Reinke stated he has 20 years in commercial and the corporate real estate industry, expertise in project management, vendor negotiation and integration, estimating, management of the design, construction process, marketing and development and construction services. Economic Development Authority Meeting Minutes May 20, 2003 Page 2 of 4 Haugland went over the two development concepts they included in the packet; 1) 7,500 sq. ft. of retail business such as a deli, coffee shop, salon or a dry cleaners; and 2) 4, 600 sq. ft. facility with a family orientated restaurant like Culvers. Nawrocki stated he believes in competitive bidding and asked what other firms were contacted. Streetar stated staff contacted Griffin, CHT, United Properties, Welsh, George Sherman, Nedegaard, Housing and Cornerstone Group, with none of them interested in the site. Nawrocki asked what funding has been used so far. Schumacher stated $535,000 of CDBG funds have been used other than administrative costs. Murzyn, Ericson and Williams all felt that Haugland's credentials were to their satisfaction. WtTliams asked if the 120-day time period would be realistic or not. Murzyn stated he felt it was suJ~cient. MOTION by Ericson, second by Wyckoff, to Approve the Preliminary Development Agreement with Haugland Real Estate Company for the redevelopment of the City owned property at 40th & University Avenue; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. ADMINISTRATIVE REPORTS INDUSTRIAL PARK Schumacher stated Mark Koegler of Hoisington Koegler will present the final draft of the Industrial Park Redevelopment Plan on Monday, June 2 at the City Council Worksession. The $50,000 grant application to the Department of Trade and Economic Development for the funding of a contamination investment and response action plan has been submitted. The jqrst step required by the state prior to receiving the funding is soil correction. Staff has been working with two of the larger property owners in Phase 1 and II of the Preliminary Industrial Plan. $chaffer Richardson is inquiring about the possible acquisition of parcels adjacent to their property and another large property owner is willing to significantly assist in the implementation of the Redevelopment Plan. KMART Streetar stated the Kmart Advisory Group held meetings on May 1 and 15th at Murzyn Hall. On May 10th the Advisory Group toured redevelopment sites in Shoreview, New Brighton, Golden Valley, Richfield, Minneapolis, and St. Louis Park were each of the cities had been a partner investing time and money to make the project successful. At the City Council Worksession on Monday, June 2ne, staff will update the City Council on the progress of the Kmart project, as well as get Council feedback and direction on the development goals and principles of the project. 40TM & UNIVERSITY Schumacher stated staff has received the letter of approval from Anoka County to go forth with the purchase of the property at 522 40a (MG$) using CDBG funding. The owner of the property has been ready for a long time to sell and move to a much larger building as his business has grown considerably. Staff gave permission for MG$ employees to use the Conoco station for parking. The gas station building will be coming down within the next two to three weeks. Economic Development Authority Meeting Minutes May 20, 2003 Page 3 of 4 3929 CALIFORNIA Schumacher stated site borings for the future industrial building at 3929 California Street has been completed and approved for building load standards. Mr. Stauffacher's architect will have building plans completed by June Ist with a projected start date of June 25tn. COLLINS AUTOBODY Schumacher stated the property owners of Collins Autobody have contacted staff with interest in purchasing and developing the City owned, single-family home at 4833 University Avenue to expand their business. The City purchased the home for $75,900. Collins is proposing the following: 1) Pay $65,000 for the property as is; 2) Pay $2,500 down immediately and the balance in April of 2004; 3) has designed two alternative business expansions. One being 3, 725 sq. ft and the other 5,178 sq. ft.; 3) the plan would allow them to acquire the property from the City this summer, remove the single-family home and prepare the site for construction; 4) the addition would begin by June of 2004, with the balance of the purchase price ($62, 000) paid to the City; and 5) if they do not carry through with the development plan by June of 2004, the property would revert to the City ownership, the down payment money and any funding expended by Collins on the removal of the building and site preparation would be lost. Schumacher asked for the Boards direction if they would like staJf to go forth with a purchase agreement.. Williams suggested staff try to negotiate the full $75,900 price the City paid for the property. Murzyn and other boardmembers directed staff to work out an agreement. 1036 GOULD Streetar stated staff has been working with Anoka County and GMHC to assist the owner of the property to make the necessary improvements to the home in order for her to occupy it again. GMHC assisted the owner in receiving a $66,000 home improvement loan. Bakken indicated she has been working with Anoka County Social Services staff to identify the needs of the senior resident, has contacted a local Church for volunteers, which will be coordinating a day to help the owner with yard cleanup, minor interior repairs, cleaning up after the construction and organizing of items in the home. CENTRAL AVENUE DESIGN GUIDELINES COMMITTEE Streetar stated the Committee has/finished the process of developing guidelines for Central Avenue, which are intended to apply to new construction, exterior changes, major remodeling, and additions to buildings, as well as renovation or rehab of existing buildings. The committee will be presenting the guideline plan to the Planning Commission for formal review and then to the City Council for final approval in the next month. METROPOLITAN COUNCIL/GMHC Streetar stated GMHC applied for and received $240, O00 for the acquisition, demolition, new construction; rehabilitation of l 3 for sale homes in Columbia Heights. The funds will be used for gap ftnancing, the City's match would be $50,000 and to qualify for these homes, potential buyers must have a household income between $75,300 and $86,595. Economic Development Authority Meeting Minutes May 20, 2003 Page 4 of 4 BURGER KING Streetar stated the Nath Companies, which own Burger King have been working with staff to relocate their business in Columbia Heights with a $1.2 million dollar facility. The properties of the old Hardees, the Blue Car Wash and Jellies and Beans sites have been considered. The Jellies and Beans site is the most feasible site for the development. Nath is also proposing a commercial or residential development on the Ostlund property behind La Casita. Staff will meet with Nath on May 23r~ to discuss both proposals. Wyckoff stated the Ostland brothers, contacted her about their idea ora transmission shop on the site. Williams stated the owner of the Rental shop on Central contacted him in regards to relocating his business to the same location. Streetar stated either development would meet the zoning, but was concerned the rental shop would want to have their equipment located outside the building. This would not work with the proposed redevelopment area zoning. Fehst suggested staff contact the owner of the rental shop and work with him, which would also save the City money in relocation costs at the time the City purchases the rental building. 37TM & CENTRAL Schumacher stated staff is still working with the owner of the old Bridgeman's building to create a redevelopmentprojectfor the 37th & Centralproject area. Developer, Roman Roos, has teamed up with the owner to try and partnership the project. Staff should know by next week if this will work or not. Roman does four to five projects a year in the $4 to 5 million range. The other option for the site is a plan staff has been working on with the MCF Group. MCF has never done a project like this before and they have no performa. Staff will continue to work with them and keep open all options for the redevelopment project. Fehst commended Streetar and Schumacher for their hard work stirring up interest in the redevelopment of 40tn and University. ADJOURNMENT President, Murzyn, adjourned the meeting at 8:06 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H:~EDAminutes2003~5 -20-2003 Z II II COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: June 17, 2003 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Bob Streetar BY: DATE: June 11, 2003 BACKGROUND: The bound Financial Report for May 1, 2003 Check Listing (green sheets), and draft Resolution 2003-08 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 fi:om January 1 through May 31, 2003. The Check History shows each fund with an expenditure history during the month of May, 2003. The total disbursements by fund are shown at the top of the listing. RECOMMENDATION: Staff will be available to answer specific questions. If the report is satisfactorily complete, we recommend the Board take affirmative action to receive the Financial Report and approve the payment of bills. RECOMMENDED MOTION: Move to approve Resolution 2003-08, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement for May, 2003 and Payment of Bills for the month of May, 2003. EDA ACTION: Consent 2 0 0 3 \MayFinRep2 0 0 3 EDA RESOLUTION 2003-08 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY 0gDA) APPROVING THE FINANCIAL STATEMENT FOR MAY, 2003 AND PAYMENT OF BILLS FOR THE MONTH OF MAY, 2003. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed fmancial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the month of March and April, 2003 and the list of bills for the month of May, 2003 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 ...... ,2003. MOTION BY: SECONDED BY: AYES: NAYS: Don Murzyn Jr., President Attest by: Cheryl Bakken, Community Development Secretary H AResolutions2003~EDA2003-08 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: June 17, 2003 AGENDA SECTION: Items for Consideration ORIGINATING DEPARTMENT: EXECUTIVE NO: ! DIRECTOR Community Development APPROVAL ITEM: Preliminary Development Agreement BY: Robert Streetar BY: DATE: June 12, 2003 BACKGROUND: As part of the redevelopment of the Kmart site, please find attached a "Preliminary Development Agreement" between the Columbia Heights Economic Development Authority (EDA), and New Heights Development, LLC, (the Developer). The purpose of the agreement is to clearly define the obligations of both parties as they work together to create a mutually acceptable redevelopment proposal, which could ultimately lead to a formal development contract between the EDA and the Developer. In summary: The Developer agrees to: Submit a redevelopment proposal by August 1, 2003. Provide documentation indicating the over-all cost of the project as well the financing plan. · Submit a redevelopment schedule. · Pay $12,500 (25%) towards the cost of the consultant planning study. · Pay $5,000 (50%) towards the cost of the sewer study on Central, and if the redevelopment occurs, pay an additional $5,000 for a total of $10,000 (100%) of the cost of the sewer study. · Deposit $10,000 to pay for any additional costs the City may incur as part of reviewing the Developer's proposal. In addition, if the City incurs any cost beyond the $10,000 the Developer is obligated to pay for those as well. The EDA agrees to: · Take the necessary actions to determine the potential need, if any, of public assistance, financial or otherwise. · Work only with the Developer during the term of the agreement to create a mutually acceptable development proposal. Steve Bubul of the law firm of Kennedy and Graven has reviewed this agreement. RECOMMENDATION: Staffrecoaunends the EDA approve the Predevelopment Agreement between the Columbia Heights Economic Development Authority (EDA) and the New Heights Development, LLC, (the Developer). RECOMMENDED MOTION: Move to approve the Predevelopment Agreement between thc Columbia Heights Economic Development Authority (EDA) and the New Heights Development, LLC, (the Developer), and furthermore, authorize the President and Executive Director to enter into an agreement for the same. Attachments EDA ACTION: h:\Consent2003~EDA Preliminary Development Agreement-New Heights Dev. LLC COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY PRELIMINARY DEVELOPMENT AGREEMENT THIS AGREEMENT, dated this day of ,2003 by and between the Columbia Heights Economic Development Authority, a body politic and corporate under the laws of Minnesota ("Authority") and New Heights Development, LLC ("Developer"): WITNESSETH: WHEREAS, the Authority desires to promote redevelopment of certain property within the City of Columbia Heights, which property is legally described in Exhibit A attached hereto ("Property"); and WHEREAS, the Developer intends to submit a preliminary proposal (the "Proposal") for redevelopment of the Property (the "Redevelopment"), by August 1, 2003, and WHEREAS, the Developer has requested the Authority to explore the use of certain public assistance, financial and otherwise, to assist with the Redevelopment; and WHEREAS, the Authority has determined that it is in the Authority's best interest that the Developer be designated sole developer of the Property during the term of this Agreement; and WHEREAS, the Authority and the Developer are willing and desirous to undertake the Redevelopment if (i) a satisfactory agreement can be reached regarding the Authofity's commitment for public assistance necessary for the Redevelopment; (ii) satisfactory mortgage and equity financing, or adequate cash resources for the Redevelopment can be secured by the Developer; and (iii) the economic feasibility and soundness of the Redevelopment; and (iv) satisfactory resolution of zoning, land use, site design, and engineering issues, and other necessary preconditions have been determined to the satisfaction of the parties; and WHEREAS, the Authority is willing to evaluate the Redevelopment and work toward all necessary agreements with the Developer if the Developer agrees to reimburse the Authority for its costs relating to the Redevelopment even if the Redevelopment is abandoned or necessary agreements are not reached under the terms of this Agreement. NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and SJB-230095v3 CL205-20 obligations set forth herein, the parties agree as follows: 1. Negotiations between the parties shall proceed in an attempt to formulate a definitive development contract ("Contract") based on the following: (a) the Developer's Proposal (when submitted) together with any changes or modifications required by the Authority; (b) such documentation regarding economic feasibility of the Project as the Authority may wish to undertake during the term of this Agreement; and (c) other terms and conditions of this Agreement. 2. It is the intention of the parties that this Agreement: (a) documents the present understanding and commitments of the parties; and (b) will lead to negotiation and execution of a mutually satisfactory Contract for the Redevelopment prior to the termination date of this Agreement. The Contract (together with any other agreements entered into between the parties hereto contemporaneously therewith) when executed, will supersede all obligations of the parties hereunder. 3. During the term of this Agreement, the Developer shall: (a) By August 1, 2003, submit a Proposal to the Authority, which Proposal must show the location, size, and nature of the proposed Redevelopment, including sample floor layouts, renderings, elevations, and other graphic or written explanations of the Redevelopment. The Proposal shall be accompanied by a preliminary schedule for the starting and completion of all phases of the Redevelopment. (b) Submit an over-all cost estimate for the design and construction of the Redevelopment. (c) Submit a final time schedule for all phases of the Redevelopment. (d) Undertake and obtain such other preliminary economic feasibility studies, income and expense projections, and such other economic information as the Developer may desire to further confirm the economic feasibility and soundness of the Redevelopment. (e) Submit to the Authority the Developer's financing plan showing that the SJB*230095v3 CL205-20 proposed Redevelopment is financially feasible. (f) Furnish satisfactory, financial data to the Authority evidencing the Developer's ability to undertake the Redevelopment. 4. During the term of this Agreement, the Authority agrees to: (a) Commence the process necessary to undertake such public assistance as is necessary pursuant to the terms of the Proposal. (b) Proceed to seek all necessary information with regard to the anticipated public costs associated with the Redevelopment. (c) Estimate the Authority's level and method of financial participation, if any, in the Redevelopment and develop a financial plan for the Authority's participation. o subject to: It is expressly understood that execution and implementation of the Contract shall be (a) A determination by the Authority in its sole discretion that its undertakings are feasible based on (i) the projected tax increment revenues and any other revenues designated by the Authority; (ii) the purposes and objectives of any tax increment, development, or other plan created or proposed for the purpose of providing financial assistance for the Redevelopment; and (iii) the best interests of the Authority. (b) A determination by the Developer that the Redevelopment is feasible and in the best interests of the Developer. 6. This Agreement is effective from the date hereof through December 31, 2003, After such date, neither party shall have any obligation hereunder except as expressly set forth to the contrary herein. 7. The Developer shall be solely responsible for all costs incurred by the Developer. In addition, the Developer shall reimburse the Authority for the following costs: (a) Upon execution of this Agreement, the Redeveloper must pay to the Authority cash in the amount of $17,500, to be applied as reimbursement for (1) the cost of a planning study by Dahlgren, Shardlow and Uban ($12,500), and (2) a portion of the cost of SJB-230095v3 CL205-20 a sanitary sewer study ($5,000). If a Contract is executed, the Developer agrees and understands that Developer will be required to pay an additional $5,000 towards the sanitary sewer study, payable upon execution of the Contract. Upon termination of this Agreement, the Authority shall have no obligation to return to Developer any portion of the amounts paid by Developer under this paragraph. (b) The Redeveloper is responsible for "Administrative Costs," which means out-of-pocket costs incurred by the Authority attributable to or incurred in connection with the negotiation and preparation of this Agreement, the Contract, and other documents and agreements in connection with the Redevelopment. Administrative Costs are in addition to the reimbursement for costs of the planning and sewer study referenced in paragraph (a) above. In order to secure payment of the Administrative Costs, the Developer shall deliver to the Authority cash or a certified check in the amount of $10,000 upon execution of this Agreement. The Authority will utilize such funds to pay or reimburse itself for Administrative Costs. If at any one or more times during the term of this Agreement, the Authority determines that Administrative Costs will exceed $10,000 and that additional security is required, the Authority shall notify the Developer of the amount of such additional security. Within ten calendar days of receipt of such notice, the Developer shall deliver to the Authority the required additional security. Upon t~mination of this Agreement, the Authority will return to the Developer the funds paid by the Developer to the Authority pursuant to this Section 7CO), less the amount of Administrative Costs incurred prior to the effective date of termination. This Section 7 shall survive termination of this Agreement and shall be binding on the Developer regardless of the enforceability of any other provision of this Agreement. 8. This Agreement may be terminated upon 5 days written notice by the Authority to the Developer if: (a) an essential precondition to the execution of a contract cannot be met; or Co) if, in the sole discretion of the Authority, an impasse has been reached in the negotiation or implementation of any material term or condition of this Agreement or the Contract; or (c) The Authority determines that its Administrative Costs will exceed the amount initially deposited for such purpose under Section 7Co), and the Developer does not deliver additional security to the Authority pursuant to Section 7CO) of this Agreement. SJB-230095v3 CL205-20 If the Authority terminates the Agreement under this Section 8, the Developer shall remain liable to the Authority under Section 7(b) of this Agreement for Administrative Costs incurred by the Authority through the effective date oftemfination. 9. The Developer is designated as sole developer of the Property during the term of this Agreement. The Authority makes no representations or warranties as to control, access or ownership of any portion of the Property, but agrees that during the term of this Agreement the Authority will not enter into agreements with any other party to facilitate redevelopment of the Property. 10. In the event that the Developer, its heirs, successors or assigns, fail to comply with any of the provisions of this Agreement, the Authority may proceed to enforce this Agreement by appropriate legal or equitable proceedings, or other similar proceedings, and the Developer, its heirs, successors or assigns, agree to pay all costs of such enforcement, including reasonable attorneys' fees. 11. If any portion of this Agreement is held invalid by a court of competent jurisdiction, such decision shall not affect the validity of any remaining portion of the Agreement. 12. In the event any covenant contained in this Agreement should be breached by one party and subsequently waived by another party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach. This Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 13. Notice or demand or other communication between or among the parties shall be sufficiently given if sent by mail, postage prepaid, remm receipt requested or delivered personally: (a) As to the Authority: Columbia Heights Economic Development Authority 590 40th Avenue NE Columbia Heights, MN 55421 Attn: (b) As to the Developer: SJB~230095v3 CL205-20 14. This Agreement may be executed simultaneously in any number of counterparts, all of which shall constitute one and the same instrument. 15. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. 16. The Developer hereby agrees to protect, defend and hold the Authority and its officers, elected and appointed officials, employees, administrators, commissioners, agents, and representatives harmless from and indemnified against any and all loss, cost, fines, charges, damage and expenses, including, without limitation, reasonable attorneys fees, consultant and expert witness fees, and travel associated therewith, due to claims or demands of any kind whatsoever arising out of (i) the development, marketing, sale or leasing of all or any part of the Property, including, without limitation, any claims for any lien imposed by law for services, labor or materials furnished to or for the benefit of the Property, or (ii) any claim by the state of Minnesota or the Minnesota Pollution Control Agency or any other person pertaining to the violation of any permits, orders, decrees or demands made by said persons or with regard to the presence of any pollutant, contaminant or hazardous waste on the Property; and (iii) or by reason of the execution of this Agreement or the performance of this Agreement. The Developer, and the Developer's successors or assigns, agree to protect, defend and save the Authority, and its officers, agents, and employees, harmless from all such claims, demands, damages, and causes of action and the costs, disbursements, and expenses of defending the same, including but not limited to, attorneys fees, consulting engineering services, and other technical, administrative or professional assistance. This indemnity shall be continuing and shall survive the performance, termination or cancellation of this Agreement. Nothing in this Agreement shall be Construed as a limitation of or waiver by the Authority of any immunities, defenses, or other limitations on liability to which the Authority is entitled by law, including but not limited to the maximum monetary limits on liability established by Minnesota Statutes, Chapter 466. 17. The Developer, for itself, its attorneys, agents, employees, former employees, insurers, heirs, administrators, representatives, successors, and assigns, hereby releases and forever discharges the Authority, and its attorneys, agents, representatives, employees, former employees, insurers, heirs, executors and assigns of and from any and all past, present or future claims, demands, obligations, actions or causes of action, at law or in equity, whether arising by statute, common law or otherwise, and for all claims for damages, of whatever kind or nature, and for all SJB-230095v3 CL205-20 claims for attomeys' fees, and costs and expenses, including but not limited to all claims of any kind arising out of the negotiation, execution, or performance of this Agreement between the parties. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] SJB-230095v3 CL205-20 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and its seal to be duly affixed hereto and the Developer has caused this Agreement to be duly executed as of the day and year first above written. DEVELOPER By Its: By Its: SJB-230095v3 CL205-20 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director SJB-230095v3 CL205-20 EXHIBIT A Description of Property SJB-230095v3 CL205-20 TO: FROM: DATE: SUBdECT: EDA and HRA Commissioners Robert Streetar, Community Development Director June 10, 2003 Community Development Monthly Update The purpose of this monthly report is to provide EDA and HRA Commissioners with a comprehensive update on the City's community development goals and activities. 40th & University The City received the executed Preliminary Development Agreement from the Haugland Company for 40th and University. Paul P, einke indicated that Culvers Restaurant viewed the site last week and will be getting back to him in the next few weeks. The contractor started to remove the old Conoco Station started work on June 11 and should be complete in one week. Industrial Park Redevelopment At the June 9, 2003 City Council Meeting, the Industrial Park Redevelopment Plan was approved by a four to one vote. Subsquently, numerous implementation steps must be addressed as outlined in the redevelopment plan. Staff is working closely with $chaffer Richardson and Mark Steingas, the two largest property owners in Phase I and II, on the next implementation step. Staff will be meeting with the State of Minnesota on the start up of the Phase II Clean Up Study. 4833 University Avenue Collins Autobody has agreed to purchase the City owned property at 4833 University. The terms of the agreement are as follows: · $2,500 down payment. · Expansion of existing business up to 5,200 sq. ft to start in 2004. · Purchase price of $65,000. · Existing home to be removed and site cleared by September of 2003, by Collins Autobody. Once a purchase agreement has been executed, it will be brought forward for consideration. 1036 Gould Update As of this week, the addition that was torn down due to storm damage is progressing along quite well, The Building Inspector has approved the framing for the addition and roof. Volunteers from Christ Life Church in Columbia Heights have been working with the homeowner to spruce up the yard and organize items inside the home. Monday, June 16th has been set for another group of volunteers from Anoka County Social Services and City staff to help out so the senior can get back into her home again. NEI Staff contacted United Properties, Inc., Welsh Companies, and Schaffer Richardson, Inc. to ask them to provide either redevelop or rouse ideas for the NEI building. UJ UJ E c~ 0 ~ ::) z ,.J ~ ~ uJ '~ 0 n -- ~ z ~c z ~ ~ 0 _z x = E o (~ ~ ,.;. z < ,<, ,,, = < < ,,< ,, Ir z · u. 3: LU LU '!' 0 0 3: uJ 3: uJ z n,, LU >- m 0 LU Parkview Villa Housing Complex 965 N.E. 40t~ Avenue, Columbia Heights, MN 55421 (763) 706-3800 Fax (763)788-3978 DATE: May 31, 2003 TO: Bob Streetar; Community Development Director Shirley Barnes; Chief Executive Officer; Crest View Corporation Commissioners; Columbia Heights HRA Board of Directors; Crest View FROM: William Jones, Housing Administrator May Management Report for Parkview Villa & 4607 Tyler LBP will be reparing eight of the exhaust units on the North side roof. We will be accepting bids for Elevator Maintenance for Parkview Villa North Harvest Interiors will start painting the corridors on or about June 15,2003 We will be accepting bids to install new carpet in the South building hallways. OCCUPANCY: 4607 Tyler All Units Rented NORTH BUILDING 706 OPEN ON MAY 31,2003 606 OPEN ON MAY 1,2003 711 OPEN ON JUNE 20,2003 SOUTH BUILDING All Units Rented RENTED FOR MAY 14,2003 * 3 residents needed increased services Waiting list totals are as follows: Parkview Villa North 20 CH Residents 39 Non-residents 4607 Tyler 4 CH Residents 9 Non-residents Parkview Villa South 24 CH Resident 16 Non residents Equal Housing Opportunity Agency Owned by the City of Columbia Heights HRA Managed by Crest View Management Services RESIDENT COUNCIL MEETING MINUTES OF JUNE 9, 2003 The meeting was called to order at 7:00 p.m. by President, Dennis Ecklund Jr. The Pledge of Allegiance was said. The Secretary's Report was given. Treasurer's Report was given. Management Report by William Jones. · Work on air exchange system is about done. · Window washing is done. Residents should report to him if they aren't happy with the job they did. · City was out and checked on cement work to be done. They will do the work as soon as they can fit it in their time schedule. Ecklund thanked for flower planting done by the City of Columbia Heights. Entertainment Committee- thanked everyone who participated in Mothers and Father's Day Dinner. Announced a St. Croix Cruise on July 30, 11:30 - 1:30 pm. Residents need to sign up on July 3, 4, 7 and 8th. Cost is $16.50 per person. Bill Ganlt will drive on the end of September trip to Apple Orchard and lunch trip. Dorothy Schaffer gave an update on Bazaar. It will be September 20th. Old Business Complaints of noise from Star Bar. William said residents should call the City and check on noise level as we have a Noise Abatement Law. New Business- None Meeting Adjourned. Respectfully Submitted, Pat Jindra EDA Representative