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HomeMy WebLinkAboutEDA AGN 05-20-03CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E.. Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: w~vw. ci. cohonbia-heights, mn. us EDA COMMISSIONERS Don Murzyn Jr. Patricia Jindra Julicnne Wyckoff Bruce Nawrocki Bobby Williams Tammera Ericson Bruce Kelzenberg ECONOMIC DEVELOPMENT AUTHORITY May 20, 2003 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, May 20, 2003, in Conference Room 1, City Hall, 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 hearin~ imoaired 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 March 18, 2003. 2) Financial Report and Payment of Bills. a. Financial Statement for March and April, 2003. b. Payment of Bills for March and April, 2003. MOTION: Move to approve Resolution 2003-07, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statement for March and April, 2003 and approving payment of bills for the month of March and April, 2003. ITEMS FOR CONSIDERATION 1. Preliminary Development Agreement with Haugland Real Estate Company MOTION: Move 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. ADMINISTRATIVE REPORTS 'ADJOURNMENT Walter R. Fehst, Executive Director mission of the Columbia 21eights Bconomic q)evelopment Authority is to provide financialand technicalassistance i~nd resources to re.ridentia~ commercia~ and industrial interests to promote healtlg safety, welfare, economic development and redevelopment. H:\edaAgcnda2003\5 -20-2003 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 MARCH 18, 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 6:34 p.m., Tuesday, March 18, 2003, in the City Hall, Conference Room 1,590 40th Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: StaffPresent: 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 Motion by Williams, second by Jindra, to adopt the minutes of the March 18, 2003, regular meeting with the following amendment: Page 3, Paragraph 2 should read: Nawrocki stated he talked to the City Manager, Mayor and a couple of Council members from the City of Anoka, and felt that he agreed with the City of Anoka's position to oppose the creation of the Anoka County EDA. All ayes. Motion Carried. Financial Report and Payment of Bills MOTION by Williams, second by Jindra, to approve Resolution 2003-03, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for February, 2003 and approving payment of bills for February, 2003. All ayes. Motion Carried. ITEMS FOR CONSIDERATION Resolution 2003-04, Ratifying and Specifying terms of Inter-Fund Loans for the Scattered Site TIF District Streetar stated from 1998 and 2000funds from the EDA, HRA and Capital Projects totaling $76,105.20 was used for the acquisition and demolition of substandard single-family detached housing. Even though, the City Council approved the funding, no formal inter-fund loan agreement was executed. At this time, the EDA is requesting to execute an inter-fund loan agreement, ratifying and specifying the terms of the inter-fund loan for the Scattered Site TIF District. Nawrocki asked what are the breakdown amounts that came out of the EDA, HRA and Capital Projects and why isn't it documented in the resolution. Streetar stated the fund amount from the Economic Development Authority Meeting Minutes March 18, 2003 Page 2 of 4 EDA was $17,500, HRA was $24,000 and Capital Projects was $34,605.20 and confirmed that staff can include these figures in the Resolution that goes before the City Council. MOTION by Williams, second by Kelzenberg, to Adopt Resolution 2003-04, a Resolution Ratifying and Specifying terms of the Inter-Fund Loans for the Scattered Site TIF District; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Resolution 2003-05~ Ratifvimt and Specifying terms of Inter-Fund Loans for the Sheffield TIF District Streetar stated Resolution 2003-05, Ratifies and Specifies the terms of the Inter-Fund Loans for the SheffieM TIF District totaling $640,174, the interest rate of 5% interest per annum, and will be repaid from TIF payments received by the City from the County in February and August each year. MOTION by Williams, second by Jindra, to Adopt Resolution 2003-05, a Resolution Ratifying and Specifying terms of the Inter-Fund Loans for the Sheffield TIF District; and furthermore, to direct the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Resolution 2003-06~ Approving and Specifying terms of Inter-Fund Loans for the Downtown CBD and University Avenue TIF Districts Shelly Eldridge, Ehler & Associates stated Resolution 2003-06, is different from the other two because we are looking at bringing this District into a deficit. There is one bond currently outstanding in the district and the payment is due in September. It is anticipated that in approximately two years we will have a permanent deficit in the District due to the class rate reduction. MOTION by Kelzenberg, second by Wyckoff, to Adopt Resolution 2003-06, a Resolution Approving and Specifying Terms of Inter-Fund Loans for Downtown CBD and University Avenue TIF Districts; and furthen~ore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Anoka County Community Development Authori~, Streetar stated the Anoka County HRA wants to establish an EDA. Staff did attend the meeting that was held in the Anoka County offices to discuss the issues. What they want to do is: 1) increase the tax base and improve the image in Anoka County; 2) establish this with regards to the Vikings stadium, the North Star Corridor, High Speed Internet Access and Marketing the County to outside development interests; 3) they want to Levy all Cities in the County at the HRA rate of. O144 percent on all taxable value. Columbia Heights share would be about $30,000, or 30% of the maximum $120,000. Staff suggests the following approach: 1. Amend the Anoka County bill, currently at the Legislature, limiting their ability to levy no more than 30% of the maximum. 2. In addition to limiting them to 30%, Columbia Heights could decide that we wanted part of their levy to use for economic or redevelopment. You could request the County Levy Economic Development Authority Meeting Minutes March 18, 2003 Page 3 of 4 more than the 30% and give it to the City to use. This would limit their ability to levy and allow the City to capture some of the funds. Staff had discussions with Barb Goodwin, Tim Yantos and Roger Jensen who felt this bill would pass, if not this year, next year. Anoka County would be able to levy the maximum, which would allow the money to leave the community. Wyckoff asked if the City could pass a Resolution opposing the bill. Streetar stated Council could do that if they would like to. Murzyn suggested the EDA and City Council oppose the bill and everyone call our commissioners to let them know how we feel on the issue. Motion by Jindra, second by Murzyn, to recommend City Council oppose Anoka County's proposal to create the Anoka County Community Development Authority and supporting the amendments to S.F. 547, limiting the ACCDA's ability to levy, to 30% of the maximum levy and authorizing the City of Columbia Heights to request that the ACCDA levy, on the City's behalf, up to 70% of the maximum levy allowed, and return to the City of Columbia Heights that amount to fund redevelopment, economic development and housing related projects as authorized under Minnesota State Statutes, sections 469.001 - 469.1080. All ayes. Motion Carried. ADMINISTRATIVE REPORTS INDUSTRIAL PARK Schumacher stated he talked to the owners of the old Honeywell building, Schaeffer Richardson about their interest in developing their site to conform with the City's redevelopment plans. They are very interested. Streetar stated the nice part about this is that the City wouldn't have to purchase the property to redevelop it. Schumacher stated staff has been contacted by the owners of the 3800 block building (old foundry building in the industrial area), proposing to sell the property to the City for approximately $2.5 million range. Murzyn questioned if it was possible for the City to condemn the building instead of buying it to save funds. Fehst stated condemning the building is an option, but felt it wouldn't affect the purchase price enough to make a difference. Streetar indicated staff would have an appraisal done prior to purchasing the land and that the Moratorium expires July 7th of this year. Fehst informed the board that whenever condemnation is used, their will be some businesses that will be hurt, but it is a necessary process for redevelopment in the City. ADJOURNMENT Motion by Nawrocki, second by Kelzcnberg, to adjoum the meeting at 8:17 p.m. All ayes. Motion Carried. Respectfully submitted, Economic Development Authority Meeting Minutes March 18, 2003 Page 4 of 4 Cheryl Bakken Community Development Secretary H:\EDAminutes2003\3-18-2003 0 0 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: May 20, 2003 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTWE NO: DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Bob Streetar BY: DATE: May 12, 2003 BACKGROUND: The bound Financial Reports for March and April, 2003 Check Listing (green sheets), and draft Resolution 2003-07 are attached for review. The enclosed Financial Reports list the Revenue Guideline (pink sheets), the Expenditure Guideline (yellow sheets), Expenditure Guideline with Detail (white sheets), and Balance Sheet (blue sheets), for each fired and department. The report covers the activity in the calendar (fiscal) year from January 1 through April 30, 2003. The Check History shows each fund with an expenditure history during the months of March and April, 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 2003-07, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement for March and April, 2003 and Payment of Bills for the month of March and April, 2003. EDA ACTION: H: \Consent 2003 \MarchandApri 1 FinRep2003 EDA RESOLUTION 2003-07 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR MARCH AND APRIL, 2003 AND PAYMENT OF BILLS FOR THE MONTH OF MARCH AND APRIL, 2003. WItEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the month of March and April, 2003 and the list of bills for the month of March and April, 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 £mds 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:LResolutions2003~EDA2003-07 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: May 20, 2003 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: 1 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Preliminary Development Agreement with BY: Randy Schumacher BY: Haugland Real Estate Company DATE: May 15, 2003 BACKGROUND: The EDA is requested to consider approving a Pre-Development Agreement for the redevelopment of City owned property at 40th & University Avenue. Staff has been working with the Haugland Real Estate Development Company to determine the highest and best use of the one-acre, commercially zoned parcel at the above address. The purpose of a Preliminary Development Agreement is to grant the developer an exclusive opportunity to research feasible development alternatives for EDA consideration. This allows the development company to invest time and money preparing lease agreements with site users and an overall development layout of the property. The EDA will freview alternative proposals that are presented, but may reject any or all if not completely satisfied with the development concept. If a development concept is supported by the EDA, the next step would be the execution of the development contract. The contract would detail specific issues such as, sale of land, specific uses of property, and _building design. The proposed term of the Preliminary Agreement is 120 days. This will give the Haugland Company ample time to .-obtain the necessary commitments in establishing a development proposal for EDA consideration. A time line for completing tasks has been incorporated into the agreement to assure positive movement. Mr. Paul Reinke, representative of Haugland Real Estate Company will be present to discuss the redevelopment site and give a brief presentation on his company and similar projects in which he has delivered successful projects. ~COMMENDATION: Staff recommends that the EDA enter into the proposed Preliminary Development Agreement with Haugland Real Estate Company for the redevelopment of City owned property at 40th & University A{/~nUe, Columbia Heights, MN. RECOMMENDED MOTION: Move 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. Attachments . ~EDA ACTION: h~,~c0nS~nt 2003\EDA Pre-Development Agreement Haugland 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 Haugland Real Estate Development Company ("Developer"): WITNESSETH: WHEREAS, the Authority has determined that it is in Authorities best interest that Developer be designated sole developer of the Property during the term of this Agreement; and WHEREAS, the Authority and Developer are willing and desirous to undertake the Development if (i) a satisfactory agreement can be reached for the purchase price of the Property and the Authorities commitment for public costs, if any, necessary for the Development; (ii) satisfactory mortgage and equity financing, or adequate cash resources, for the Development can be secured by Developer; (iii) satisfactory resolution of zoning, land use and site design issues and (iv) the economic feasibility and soundness of the Development and other necessary preconditions have been determined to the satisfaction of the parties. NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and 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: Developer's current proposal which shows the scope of the proposed Development in its latest form as of the date of this Agreement, together with any changes or modifications required by the Authority; b) A mutually satisfactory Contract to be negotiated and agreed upon in accordance with negotiations contemplated by this Agreement; c) Such documentation regarding economic feasibility of the Project as the Authority may wish to undertake during the term of this Agreement; and d) Other terms and conditions of this Agreement. 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 Development 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. Notwithstanding anything to the contrary herein, the Authority shall have no obligation to provide any financial assistance to the Developer or approve any action in connection with the Development unless and until final approval by the Authority of a definitive Contract. -1- 3. During the term of this Agreement, the Developer shall: Submit to the Authority a design proposal to be approved by the Authority showing the location, size, and nature of the proposed Development, including floor layouts, renderings, elevations, and other graphic or written explanations of the Development. The design proposal shall be accompanied by a proposed schedule for the starting and completion of all phases of Development. b) Submit an over-all cost estimate for the design and construction of the Development. c) Submit a time schedule for all phases of the Development. d) Undertake and obtain such other preliminary economic feasibility studies, income and expense projections, and such other economic information as the Authority may desire to further confirm the economic feasibility and soundness of the Development. Submit to the Authority the Developer's financing plan showing that the proposed Development is financially feasible. f) Furnish satisfactory, financial data to the Authority evidencing the Developer's ability to undertake the Development. *Relating to issues a) through f), reasonable progress must be made to the satisfaction of the Authority during the first 30-60 days. This Agreement is effective for a term ending 120 days from its date, unless extended by mutual written agreement of the parties. The Executive Director is authorized to execute any such extension on behalf of the Authority. Upon execution of this Agreement, the Authority acknowledges receipt from the Developer of a deposit in the amount of $3,000, from which funds the Authority may pay any third party out-of-pocket costs incurred by the Authority or Authority in connection with the Authorities activities furthering the Development from and after the date of this Agreement (hereafter, the "Authority Costs"). If at any time the date of this Agreement the Authority determines that its expenses will exceed $3,000, the Authority may notify the Developer of the amount of SUch additional costs. Within ten calendar days of receipt of said notice, the Developer shall dehver to the Authority the required additional funds. If a Contract is successfully negotiated, any unused balance in the funds deposited under this Section 5 (except the nonrefundable portion thereof) shall be retumed to the Developer upon execution of the Contract (unless the parties specify otherwise in the Contract). If this Agreement is terminated in accordance with its terms, the Authority will return to the Developer the balance of any funds deposited under this section (less any amounts that are nonrefundable under the terms of this section) as of the date of receipt of the notice of termination, and less any Authority Costs incurred through the date of receipt of the notice of termination. For the purposes of this paragraph, Authority Costs are considered to be incurred if they have been paid, relate to services performed, or are -2- payable under a contract entered into, on or before the date of receipt of the notice of termination. 6. This Agreement may be terminated upon 10 days' written notice by either party to the other if: (i) A party fails to perform any of its obligations hereunder, and fails to cure the default within 30 days after receipt of written notice thereof; or (ii) An impasse has. been reached in the negotiation of any material term of the Contract. Upon termination under this Section, neither party thereafter shall have any liability or obligations to the other except as otherwise provided in Section 5 hereof. Developer is designated as sole developer of the Property during the term of this Agreement. During the term of this Agreement, the Authority agrees that it will not negotiate or contract with any other party conceming the development or sale of the Property. The Developer shall not assign or transfer its rights under this Agreement in full or in part without the prior written consent of the Authority. In the event that either party, its heirs, successors or assigns, fail to comply with any of the provisions of this Agreement, the non-defaulting party may proceed to enforce this Agreement by appropriate legal or equitable proceedings, or other similar proceedings. 9. 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. 10. 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. 11. Notice or demand or other communication between or among the parties shall be sufficiently given if sent by mail, postage prepaid, return receipt requested or delivered personally: As to the Authority: 590 40th Avenue NE Columbia Heights, MN 55421 b) As to the Developer: 12. This Agreement may be executed simultaneously in any number of counterparts, all of which shall constitute one and the same instrument. -3- 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. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) BY: Don Murzyn Jr. ITS: President BY: Walter R. Fehst ITS: Executive Director HAUGLAND REAL ESTATE DEVELOPMENT COMPANY BY: ITS: -4- EXHIBIT A LEGAL DESCRIPTION OF PROPERTIES 322 40TM AVENUE Lot 15, Blk 68, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota 3944 Lookout Place Rearr. Block E, Th. Pt. Of N 1/2, front and rear of Lot 2 th. Lines East of East line of University Avenue as the same is now laid out & constructed 3950 Lookout Place Rearr. Of Blk East of Columbia Heights Annex, City of Columbia Heights that part of Lot I Blk E. Rearrangement of Block E, Columbia Heights Annex to Minneapolis Desc as follows-com at the SE corner of said Lot 1-TH nearly along the west line of Lookout Place at Dist. of 90 Ft-th west to a point on the west line of said lot dist. 128 ft south from the north line of said lot-th south along the west line of said lot to the south line thereof-th east to the pt of beg-ex th pt thereof lying west of University Avenue N.E. Tract "B" Lot 16 & that part of Lot 17, Block 68, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota lying southwesterly of the following described "line 1" and northwesterly of the following described "Line 2". "Line 1" Beginning at a point on the south line of said Lot 17, distant 21.00 feet westerly of the southeast corner; thence nOrthwesterly to a point on the west line, said point being 100.00 feet southerly of the northwest corner and there terminate. "Line 2" Beginning at a point on the north line of said Lot 17, distant 10.00 feet easterly of the northwest corner; thence southwesterly to a point on the west line, said point being 10.00 feet southerly of the northwest corner and there terminate. 3955 University Avenue Rearr. Block E, N. 128feet of Lot 1 and also th. Pt. Of Lot 1 lying West of University Avenue as extended. Ex North 30ft for hwy H:~Forms~reliminary Development Agreement -5- 40th & University 40th ::3 ~ '/ TO: FROM: DATE: SUBJECT: EDA and HRA Commissioners Robert Streetar, Community Development Director Mark Nagel, Housing Assistant Randy Schumacher, Community Development Assistant April 1,2003 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. Industrial Park Land Use Planner, Mark Koegler, will be presenting his final draft of the Industrial Park Redevelopment Plan on Monday, June 2, 2003 at the City Council Work session. Staff has submitted a $50,000 grant application to the Department of Trade and Economic Development for the funding of a contamination investment and response action plan. This is the first step required by the state before receiving funds for soil correction. Staff has been working with two of the larger property owners in Phase 1 and II of the Preliminary Industrial Plan. Schaffer Richardson is inquiring about the possible acquisition of parcels adjacent to their property. Working with larger property owners will significantly assist in the implementation of the Redevelopment Plan. Kmart The Kmart Advisory Group had their first meeting on May I and their second meeting on May 15 at Murzyn Hall. The purpose of the first meeting was to orient the group to the project and the redevelopment process; the purpose of the second meeting was to develop project goals and principles, which will be used to develop redevelopment alternatives. On Saturday, May 10, the advisory group toured six redevelopment sites in Shoreview, New Brighton, Golden Valley, Richfield, Minneapolis and St. Louis Park. In each of these redevelopments, the City has been a partner investing time and money to make the project successful. Staff tentatively expects to 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 at the June 2, work session. 37th and Central Staff is working with the owner of 'the old Bridgeman's building to create a solid redevelopment project for that area. To date, he has provided a strong financial analysis for the construction of a housing/retail mixed development. However, he has yet to commit to any formal development agreement. In addition, we have received an alternative proposal from the MCF Group. Their redevelopment proposal is also a mixed-use plan that incorporates high density, owner occupied housing. 40th and University As of June 1st, the City will be eligible to spend its Community Development Block Grant dollars from Anoka County for acquisition of 522 40th Avenue (MGS Building). The owners are in the process of obtaining an appraisal. The City's appraisal from Malcolm Watson came in at $155,000. Staff will be meeting with the owner in three weeks in order to obtain a purchase agreement. 3929 California Street Site borings for the future industrial building at 3929 California Street have been completed and approved for building load standards. Mr. Stauffacher's architect will have building plans completed by June 1st with a projected construction start date of June 25th, 2003. Collins Autobody The City acquired a non-conforming, blighted, single-family home at 4833 University Avenue on January 23, 2003. The contract sales purchase price of the property was $75,900. The house is irreparable and should be razed. The zoning for the entire block is General Business. The lot measures 60 feet by 130 feet and has no direct access to University Avenue. It is located in the middle of the block, has a high elevation and limited square footage (7,800 sq. ft.), which makes this property difficult for redevelopment. The property directly to the south is also a non-conforming, single- family home in fair condition. The property to the north is the Collins Auto Body Shop. Staff approached Collins Auto Body to determine if any interest existed in acquiring the property for their business expansion. Staff has worked with the owners in developing the following redevelopment scenario: · Collins Auto Body proposes to pay $65,000 for the property as is. · Collins would pay $2,500 down immediately and the balance in April of 2004. Collins has designed two alternative business expansions. One being 3,725 sq. ft. and the other being 5,178 sq ft. All new construction would take place on the property purchased from the City. · 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. · The new addition would begin by June of 2004, and the balance of the purchase price would be paid to the City ($62,500). If Collins does not carry through with its development plan by June of 2004, the property would revert to City ownership. The money paid to the City as a down payment and any funds expended by Collins on building removal and site preparation would be lost. Staff believes this is an equitable proposal by Collins Auto Body. By removing a blighted, single-family, non-conforming home, and replacing it with expanded, retail business, this would be a positive project for the City. The above scenario has been discussed with the City Attorney. He suggested that by selling the property on a Contract for Deed with a balloon payment, the City would limit any risk or liability. Burger King The Nath Companies the owner of the Burger King located at 39th and Central has expressed an interest in moving their Burger King to the site, which is now occupied, by Jellies and Beans on Central Avenue. The Nath Companies is also proposing a commercial or residential development on the Ostlund property located behind Denny's on Central. Staff is meeting with Nath on May 23 to discuss both of these proposals. Central Avenue Design Guidelines In October of 2002, the City began a process to develop design guidelines for Central Avenue and 40th Avenue corridors. In short, this process has consisted of a number of meetings with the Design Guidelines Task Force, and a Public Workshop on the Community's image and appearance. The Design Guidelines Task Force with the help of staff and consultants, has developed what they feel are reasonable and implementable guidelines. A detailed and well-illustrated set of guidelines will express the City's expectations for private development, and complement the public investments in downtown streetscape improvements. The guidelines are intended to apply to new construction, exterior changes, major remodeling, and additions to buildings, as well as renovation or rehab or existing buildings. We are now in the process of completing this document, and the next step is to bring it to the Planning Commission for formal review, and then on to the City Council for final approval. Metropolitan Council / Minnesota Housing Finance Agency Housing Grant Because of a grant written by GMHC, GMHC has been awarded $240,000 for the acquisition/demolition/new construction, or acquisition/rehabilitation or new construction of 13 for-sale homes to new Columbia Heights homebuyers. These funds will be used for gap financing. To qualify for these homes, potential buyers must have a household income between $75,300 and $86,595. The City's match is $50,000. This leverages almost $5 dollars per $1 dollar of City investment. 1036 Gould Staff has been working with Anoka County and the Greater Metropolitan Housing Corporation Resource Center staff to assist the owner of the property located at 1036 Gould to make the necessary improvements to the home in order for her to occupy it again. The Housing Resource Center worked with the owner to obtain a Home Improvement Loan to rebuild the damaged back addition, replace windows, re-roofing, doors, flooring, steps, landscaping, tree removal, siding, etc. The roof was replaced two weeks ago on the old section of the home. This week the builder is starting on the framework and replacement of flooring. Electricians have been contacted to review the status of the current electrical box, which may need to be updated to meet current code. Next week the roof trusses will be put into place on the addition. Volunteers, through Anoka County, staff and local church members will be assisting the owner with planting, raking, miscellaneous interior repairs, cleaning up and organizing. Greater Metropolitan Housing Corporation (GMHC) Home at 4828 5th Street The home is neady complete at 4828th Street. GMHC is currently getting ready to build the garage. 4 RESIDENT COUNCIL MEETING MINUTES OF MAY 12, 2003 The meeting was called to order at 7:00 p.m. by President, Dennis Ecklund Jr. The Pledge of Allegiance was said. Ecklund introduced Jerry Rainum from Freedom RX. This is a program to order prescription drugs from Canada through him. He explained how it works and stated he can visit Parkview Villa once a week. Management Report by William Jones. · Talked about the letter sent to Parkview Villa South Residents about raising the rents. · Star Bar is a big problem as to noise. Residents are to call 911 when noise is going on. · The office now accepts packages for residents. · The north roof exhaust fan has been repaired. The south building will be recarpeted. · Window washing dates and prices are available in the office. Residents must sign up for this service. · Bob Streetar and Mark Nagel have to okay the furniture before it can be ordered. The Secretary, Treasurers, Entertainment, Sunshine and Welcoming Committee reports were given. President, Ecklund spoke of abuse of Pat Rules. Pets should be taken away from the building, and dog elimination should be properly disposed of in dumpster. The bench by the main doorway is designated as Non-Smoking. Residents want the Library painted. He will check with Bob Streetar. Residents want bird bath water fall hooked up. A work order will be submitted to William. A resident was concerned over another residents mail and papers piling up. Asked William to check the apartment. Jones stated they should call the police department, as he was not responsible to check on residents. Meeting Adjourned. Respectfully Submitted, Pat Jindra EDA Representative