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HomeMy WebLinkAboutEDA AGN 08-20-03CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E.. Columbia Heights. MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Ottr Website at: www. ci. colutnbia-heights, nln. us EDA COMMISSIONERS Don Murzyn Jr. Patricia Jindra Julienne Wyckoff Bruce Nawrocki Bobby Williams Tammera Ericson Bruce Kelzenberg ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING IMMEDIATELY FOLLOWING THE HRA MEETING ON WEDNESDAY, AUGUST 20, 2003 CITY HALL, COUNCIL CHAMBERS AGENDA 1. CALL TO ORDERfROLL CALL. 2. 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.) mo MOTION: Move to approve the consent agenda items as listed below: 1) Approve EDA Meeting Minutes for July 15~ 2003. MOTION: Move to approve the minutes of the June 17, 2003 regular EDA Meeting as presented. 2) Approve the Financial Report and Payment of Bills MOTION: Move to approve Resolution 2003-11, a Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statement and payment of bills for the month of July, 2003. 4. ITEMS FOR CONSIDERATION A. Adopt Resolution 2003-12 & 2003-13 MOTION: Move to waive the reading of Resolution 2003-12, there being an ample amount of copies available to the public. MOTION: Move to Adopt Resolution 2003-12, being a Resolution of the Columbia Heights EDA adopting the 2004 Budget of $222,648 and a levy of $84,965 and recommending this budget and levy to the City CounCil for approval. MOTION: Move to waive the reading of Resolution 2003-13, there being an ample amount of copies available to the public. MOTION: Move to Adopt EDA Resolution 2003-13, being a Resolution of the Columbia Heights EDA approving and levying $137,683, subject to approval by the City Council. 5. ADMINISTRATIVE REPORTS 5. ADJOURNMENT Walter R. Fehst, Executive Director H:\edaAgenda2003\8-20-2003 THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES TUESDAY, JULY 15, 2003 CALL TO ORDERfROLL CALL President, Murzyn called the meeting to order at 7:03 p.m. Present: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE CONSENT AGENDA Approval of Minutes Move to adopt the minutes of the June 17, 2003, regular meeting as presented in writing. Financial Report and Payment of Bills Move to approve Resolution 2003-09, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for June, 2003 and approving payment of bills for June, 2003. MOTION by Williams, second by Jindra, to adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION RESOLUTION 2003-10~ RESOLUTION TO AMEND AND RESTATE THE BY-LAWS Streetar stated the EDA Board made and approved a motion to change the EDA meeting start time to 7:00p. m. It is stated in the By-laws the meeting time will be 6:30p. m. Therefore, staff has prepared the revised By-laws to amend and restate by Resolution 2003-10. MOTION by Nawrocki, second by Williams, to waive the reading of Resolution 2003-10, there being an ample amount of copies available to the public. All ayes. Motion Carried. MOTION by Nawrocki, second by Williams, to Adopt Resolution 2003-10, a Resolution to amend and restate the By-Laws of the Columbia Heights Economic Development Authority. All ayes. Motion Carried. ADMINISTRATIVE REPORTS KMART REDEVELOPMENT SITE Streetar stated the redevelopment plan is on schedule with the sanitary sewer analysis completed, the engineering firm of SEH will be conducting an evaluation of all the buildings in the area to determine the City's eligibility for TIF funding and a traffic analysis is underway to determine possible traffic impacts and improvements required as a result of the redevelopment. The developer plans to present the final proposal sometime in August. At the August Planning and Zoning meeting the Comprehensive Plan reguiding and rezoning of the property will be discussed. Economic Development Authority Meeting Minutes July 15, 2003 Page 2 of 3 4828 5th Street Streetar stated the Ribbon-Cutting Ceremony for the joint venture of the propero/ at 4828 5th Street will be held on Monday, July 21st. The Open House will be from 4:30 to 6:00p. m. with the Ribbon-Cutting Ceremony at 5:30p. m. GMHC and the CiO/purchased the non-conforming home a couple of months ago. GMHC then demolished the home and built a new single-family home, which has been sold to a current Columbia Heights resident. 4146 2na Street Streetar stated GMHC has purchased the property at 4146 2na Street using part of the $240,000 allocated for the Cio/from MHFA and the Metropolitan Council. Currently, there is a single-family home on the property. GMHC will demolish the home and build 3 single-family homes, as the propero/ has three separate lots on it. 40464048 Central Avenue Streetar stated Raynard Nyberg, the owner of the property at 4046 and 4048 Central Avenue met with staff to discuss options for the sale and redevelopment of the propero/. There is a sign company, carpet store, barber and beauty shop renting out the over 5, 000 square foot building. The Fire Department has given the owner a correction letter to fix the structural problems on the second floor. Staff agreed to try and market the property to interested developers within the next month. 39th & Central Avenue Streetar stated the Columbia Heights Rental business has been negotiating on the property located behind White Castle on Central to build and relocate. The owner has indicated they will be out of their current location by the end of the year and have already discussed some very detailed plans for the new site with the Cio/Planner. Burger King is still looking at the Jelly & Beans site to rebuild on. 37th & Stinson Streetar stated he met with Gerry Herringer, who owns the Apache Plaza Mall on 37th & Stinson. Herringer indicated the Cio/helped him sell and redevelop the Kmart property that he also owned and wondered if they could also work with him on the 37th & Stinson site. Streetar stated the redevelopment site would incorporate the Apache Theater and the strip mall. Ideas for redevelopment of the sites are some senior market rate housing and building a new Cio/liquor store. Streetar recommended the Cio/ consider purchasing the development property using bonds, as the current interest rate is very low. The funds would be used to acquire, relocate and redevelop the properties. Streetar suggested holding a special meeting between the EDA and Ehlers where the pros and cons of Bonds would be addressed. Murzyn requested staff set up this bond meeting. 3955 University Schumacher stated Haugland will put up a marketing sign on the site. They are looking at doing a 1.8 million dollar construction project on the corner of 40th & University. Schumacher has been in contact with Mike Sweat, owner of MGS to purchase the property to complete the redevelopment project. Sweat indicated a couple of weeks ago he was negotiating on a site on Central Avenue. To date, Sweat has not given staff a purchase amount for his propero/. Staff recommended sending a letter to them laying out the condemnation steps that may have to be followed in order for the CiO/to acquire the propero/ for redevelopment. Williams asked how long a quick-take procedure would take. Streetar stated it would take approximately 4 months. Economic Development Authority Meeting Minutes July 15, 2003 Page 3 of 3 Murzyn requested staff and a couple of EDA commissioners meet with Mr. Sweat to discuss the purchase and then if no response after 2 to 3 weeks, the City should go forth with the condemnation process. Schumacher will set up the meeting with Mr. Sweat. Industrial Park Redevelopment Schumacher stated Schaffer-Richardson is contacting all of the business owners around his property about purchasing and redeveloping as much of the area around his site. Schaffer-Richardson might ask the City for help with condemnation if they run into problems with a property owner not wanting to sell. The MPCA Voluntary Investigation and Clean Up grant was been approved and a mobile lab will be set up in August. 4833 University Avenue Schumacher stated he was been working with Collins Auto Body on the purchase of 4833 University to expand his business. Last month the EDA requested staff get a bid from Brown Contracting for demolition of the home. Brown Contracting bid $9,300for the demolition. Staff recommended making a counter offer of $70, 000 with Collins demolishing the home as part of the purchase agreement, which would be a $5,000 increase from the original offer. Murzyn directed staff to make the counter offer. 37th & Central Avenue Schumacher stated Mohamed Samaha, Puerta Villarta Restaurant owner has agreed to sell his property and will let staff know what amount he is asking next week. This would allow the City four properties along the 37th & Central block for redevelopment. Parkview Villa Management Bids Nawrocki asked when the HRA boardmembers will see the Parkview Villa Management bids. Streetar stated five bids were received and will be presented to the HRA at their August 19tn meeting at Parkview Villa. Staff will be sending out the bid books to boardmembers a week or so prior to the meeting. ADJOURNMENT MOTION by Williams, second by Ericson, to adjourn the meeting at 8:13 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H:~EDAminutes2003\7-15-2003 II II COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: August 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: August 11, 2003 BACKGROUND: The bound Financial Report for July 1, 2003 draft Resolution 2003-11 is attached for review. The enclosed Financial Report lists the Summary (white), the Expenditure Guideline with Detail (green) and Revenue Guideline with detail (yellow) for each fund and department. The report covers the activity in the calendar (fiscal) year from January 1 through July 31, 2003. 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 2003-11, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement and Payment of Bills for the month of July, 2003. EDA ACTION: H: \Consent2003\JulyFinRep2003 EDA RESOLUTION 2003-11 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR JULY, 2003 AND PAYMENT OF BILLS FOR THE MONTH OF JULY, 2003. 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 July, 2003 and the list of bills for the month of July, 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 thc attached financial statements and list of bills, which arc attached hereto and made a part hereof, and they arc 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: NAY S: Don Murzyn Jr., President Attest by: Cheryl Bakken, Assistant Secretary H:LResolutions2003\EDA2003-11 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of August 20, 2003 AGENDA SECTION: Items for Consideration. ORIGINATING EXECUTIVE NO: 1 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Adopt Resolution 2003-12 BY: Robed Streetar BY: Adopt Resolution 2003-13 DATE: August 13, 2003 BACKGROUND: The Economic Development Authority promotes and improves the community through redevelopment, promoting quality business attraction and retention, and maintaining and improving the City's housing stock. The EDA budget for 2004 is $222,648. The budget allows the continued implementation of the EDA's priorities related to redevelopment, economic development and housing. Staff will provide a budget presentation at the August 20 EDA meeting. The EDA raises the $222,648 through two separate levies, which use two different rates, multiplied by the City's taxable value. Rate Levy Amount .01813 $84,965 .0144 (special benefit levy) $137,683 Total Levy $222,648 The EDA will need to: 1. Pass a resolution approving and recommending the EDA Budget of $222,648 and a levy of $84,965, to the City Council for approval. 2. Pass a resolution approving and levying, subject to City Council approval, the special benefit levy of $137,648. RECOMMENDATION MOTION: Move to waive the reading of Resolution 2003-12, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt EDA Resolution 2002-12, being a Resolution of the Columbia Heights EDA adopting the 2004 Budget of $222,648 and a levy of $84,965 and recommending this budget and levy to the City Council for approval. RECOMMENDATION MOTION: Move to waive the reading of Resolution 2003-13, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt EDA Resolution 2003-13, being a Resolution of the Columbia Heights EDA approving and levying $137,683, subject to approval by the City Council. EDA ACTION: H:\Consent2003\EDA Budget & Levy ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS EDA RESOLUTION 2003-12 RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS (EDA) ADOPTING A BUDGET AND SETTING THE EDA LEVY. BE IT RESOLVED By the Columbia Heights Economic Development Authority (EDA) of Columbia Heights, Minnesota as follows: WHEREAS, the Columbia Heights City Council established the Columbia Heights Economic Development Authority January 8, 1996 pursuant to Minnesota Statutes 469.090 to 469.1081; and WHEREAS, the City Council has given to the EDA the responsibility for all development and redevelopment projects and programs; and WHEREAS, the EDA is authorized under State Statutes, Section 469.107 to levy a tax on its area of operation for the purposes authorized under State Statues 469.090 to 469.1081, subject to consent by the City Council. NOW, THEREFORE BE IT RESOLVED BY THE HRA FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA THAT: 1. The EDA adopts and recommends to the City Council for approval a budget of $222,648 for year 2004. 2. The EDA adopts and recommends to the City Council for approval a levy of $84,965 for year 2004. The Executive Director is instructed to transmit a copy of this resolution to the City Manager and Finance Director/City Clerk of the City of Columbia Heights, Minnesota. APPROVED THIS__ DAY OF MOTION BY: SECONDED BY: ROLL CALL: AYES: NAYS: Attest by: ,2003. Walter R. Fehst, Executive Director Don Murzyn Jr., President H:\Resolutions2003\EDA 2003-12 EDA Levy COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2003-13 AUTHORIZING THE LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF A BUDGET FOR FISCAL YEAR 2004 WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.1081 ("EDA Act") the City of Columbia Heights ("City") created the Columbia Heights Economic Development Authority (the "EDA"); and WHEREAS, pursuant to City Resolution 2001-62 and Ordinance No. 1442, the City Council granted to the EDA all powers and duties of a housing and redevelopment authority under the provisions of Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act"), except certain powers that are allocated to the Housing and Redevelopment Authority in and for the City of Columbia Heights (the "HRA"); and WHEREAS, Section 469.033, Subdivision 6, of the HRA Act permits the EDA and HRA, together, to levy and collect a special benefit levy of up to .0144 percent of taxable market value in the City upon all taxable real property within the City; and WHEREAS, the EDA desires to levy a special benefit levy in the amount of .0144 percent of taxable market value in the City; and WHEREAS, the EDA understands that the HRA does not expect to levy a special benefit tax for fiscal year 2004; and WHEREAS, the EDA has before it for its consideration a copy of a budget for its operations for the fiscal year 2004 and the amount of the levy for collection in 2004 shall be based on this budget. NOW, THEREFORE, Be It Resolved by the Board of Commissioners of the Columbia Heights Economic Development Authority: 1. The budget of $222,648 for the operations of the EDA presented for consideration by the Board of Commissioners of the EDA is hereby in all respects approved. Such budget includes the amount the EDA requests (by separate resolution) to be levied by the City under Minnesota Statutes, Section 460.107, together with the amount to be levied hereunder by the EDA under Minnesota Statutes, Section 469.133, subdivision 6. SJB-236025vl CL205-3 Staff of the EDA are hereby authorized and directed to file the budget with the City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6. 3. Them is hereby levied, subject to the approval of the City Council of the City, a special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, in the mount equal to the lesser of a levy at a rate of .0144 percent of taxable market value in City, or $137,683 with respect to taxes payable in calendar year 2004. 4. Staff of the EDA are hereby authorized and directed to seek the approval by resolution of the City Council of the City of the levy of special benefit taxes in 2004 and to take such other actions as are necessary to levy and certify such levy. APPROVED THIS MOTION BY: SECOND BY: ROLL CALL: AYES NAYS ATTESTED BY: __ DAY OF ,2003. Walter R. Fehst, Executive Director H:hResolutions2003XEDA2003-13 Levy2 Don Murzyn Jr, President SJB-236025vl 2 CL205-3 TO: FROM: DATE: SUBJECT: EDA and HRA Commissioners Robert Streetar, Community Development Director August 15, 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 Redevelopment Plan The next step in the redevelopment process of the Industrial Park will be the Soil and Ground Water Testing Procedure. As part of ProSource's contract, they will complete 85 borings on 29 acres of industrial property. City staff has received strong support from the affected property owners, with one exception. A detailed map has been included in the EDA packet showing type and approximate boring locations. A portable laboratory will be located in the field, allowing for immediate testing results. This entire testing process will take three weeks to complete. The scheduled starting date is August 25, 2003. In addition, the Metropolitan Council has informed the City that $2.6 million will be available for clean up projects in the November 2003 funding cycle. These dollars are supplemental to the Department of Economic Development funds, which are sponsoring our present project. 4833 University Avenue Staff has been negotiating the sale of 4833 University Avenue with the adjacent property owner, Collins Autobody. Collins is interested in acquiring the property for the proposed expansion of their business. Their last offer of $65,000 was $10,000 under the City's purchase price. At its last meeting the EDA suggested a mid-point compromise price of $70,000 with Collins Autobody responsible for the removal of the blighted, single-family home. Staff has submitted the Contract for Deed including the compromised language as stated above. As of the writing of this report, no confirmation from Collins Autobody has been received. A verbal update will be given at the EDA meeting. 40th & University Redevelopment Mr. Paul Reinke representing the Haugland Company has met with staff to negotiate an equitable development proforma. The key components of the proposed "Heights Shops" are as follows: · Project rents will be approximately $14.50/net rentable square foot · Base building cost of $80/square foot · Tenant improvement allowance of $15.00/square foot · Land cost estimated at $50,000 less demolition cost Preliminary Development Proforma Summary: Land Costs Building Costs Development Costs Contingency Est. Total Development Cost $ 58,500 $779,5OO $2O7,7OO $ 24,200 $1 ,O69,90O Assuming the EDA supports these parameters, the Haugland Company will pursue Pre- Lease Agreements before entering into a final development. In addition, the owner of 322 40th Avenue,(MGS) has agreed to have the Anoka County Assessor physically evaluate his property in order to obtain a more viable market value. 37th & University Staff has had discussions with two companies relating to development scenarios on the old Bridgemann/Puerta Villarta redevelopment site. The most significant issue in moving forward on this project is the inability to obtain a firm land cost for the Bridgemann's building. Staff will discuss alternative strategies at the upcoming EDA meeting. Kmart Redevelopment On September 4 at 7 p.m. in the City Council Chambers there will be a joint City Council, EDA, Planning Commission work session regarding the current status of the Kmart redevelopment plan. At the EDA meeting, staff will provide a technical memorandum regarding the project and ask EDA members to review the report before the September 4 meeting.