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HomeMy WebLinkAboutEDA AGN 10-21-03CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: wwmci, cohtmbia-heights, m..us EDA COMMISSIONERS Don Murzyn Jr. Patricia Jindra Julienne Wyckoff Bruce Nawrocki Bobby Williams Tammera Ericson Bruce Kelzenberg ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING FOLLOWING THE HRA 7:00 P.M. MEETING ON TUESDAY, OCTOBER 21, 2003 PARKVIEW VILLA, COMMUNITY ROOM AGENDA 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. MOTION: Move to approve the consent agenda items as listed below: 1) Approve EDA Meeting Minutes for September 16, 2003. 2) Approve the Financial Report and Payment of Bills 4. ITEMS FOR CONSIDERATION 1. Approve Planning Services Agreements with Dahlgren, Shardlow, and Uban for Redevelopment Planning Assistance MOTION: Move to approve the planning service agreements with Dahlgren, Shardlow and Uban for redevelopment planning assistance; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. 2. Renew Agreement with the Greater Metropolitan Housing Corporation (GMHC) MOTION: Move to enter into a Consulting Services Agreement with the Greater Metropolitan Housing Corporation to participate in their programs; 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\ 10-21-2003 The EDA does not discriminate on the basis of disability in the adm/ssion or access to, or treatment or employment in, its accommodation will be provided to allow individuals with disabilities to participate in all EDA services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the EDA Secretary at 706-3669 to make arrangements (TDD 706-2806) for deaf or hearing impaired only. 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 SEPTEMBER 16, 2003 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 7:06 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 August 20, 2003, regular meeting as presented in writing. Nawrocki stated in the future when he makes a supportive argument, he would like to see it in the minutes. Financial Report and Payment of Bills Move to approve Resolution 2003-14, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for August, 2003 and approving payment of bills for August, 2003. MOTION by Williams, second by Wyckoff, to adopt the consent agenda items as listed. All ayes. Motion Carried. Nawrockd stated the check record pages aren't in the Financial Report. Streetar stated he would check into it. ITEMS FOR CONSIDERATION 40th & University Schumacher stated the EDA selected Haugland Company as the exclusive developer for the 40th & University redevelopment site. Haugland has $50, O00for the land in theirproforma. Staff had Ehlers do an analysis which states construction costs, the vacancy of 5% and development fees are within industry standards, the construction proposed by Haugland is of high quality, and the lease rate of $14.50/square foot is within the Columbia Heights market but is a little on the high side. Haugland would like to get a determination from the board if they are willing to except the purchase price of $50, OOO for the land so an agreement can be drawn up and the project started. Paul Reinke, Senior Director of Development for Haugland Company stated his job was to establish the need and type of development that will work on the project site. Originally he proposed a 75, 000 sq. fi. retail building or a restaurant like Culvers that would work on the site. However, after contacting Culvers and other restaurants they indicated no interest in the site. Therefore, he recommended a service retail market for the site. Nawrocki asked if the $14.50/sq.fi. is gross or minimum rent plus cam. Reinke stated it would be Economic Development Authority Meeting Minutes September 16, 2003 Page 2 of 6 more like $20. O0/sq.ft. with the operating expenses. Nawrocki stated he didn't feel that coffee shops would pay $20. O0/sq.ft. and felt the sale price of the land is too low. Murzyn asked if a fast food restaurant would give the City more for the land Reinke stated it would, but after researching they found there isn't a market for anymore fast food restaurants in the City. Wyckoff stated the City needs coffee shops and dry cleaners in Columbia Heights, which would also be an incentive for the residents of the new housing units in the Industrial Park project area. Dunn Brothers and Quizno's would compliment the corner. Fehst stated with the new housing in the Industrial Area, there will be a need for some retail. Williams stated the sale price of the land was too low and asked how much money does the City have invested in this project. Schumacher stated there will be a little over $500,000 in CDBG dollars, which purchased two single-family homes, gas station and the MGS building. Reinke stated he contacted Welsh, United and a couple other developers to market the property for him and they said no as the area is too small. Kelzenberg did not feel that people would want to turn off of University to get a cup of coffee or sandwich. Streetar stated there is the option of equity sharing when Haugland is ready to sell. Reinke stated he haan 't explored this option but could certainly consider it. Murzyn directed staff to explore this option with Haugland Ericson stated we want to be one step ahead of the other developments in the area. Nawrocki asked if Haugland Company is developers or owners. Reinke stated they are developers that manage properties, sometimes keep the property and even share it with other entities. Motion by Ericson, second by Wyckoff, to direct staff to move ahead in negotiating a Development Agreement with Haugland Company, based on the sale price of $50,000 for the land. Upon Vote: Jindra-aye, Nawrocki- nay, Ericson- aye, Williams- nay, Wyckoff- aye, Kelzenberg- aye, Murzyn- aye. Motion Carried. Resolution 2003-157 Modifying the CBD Revitalization Plan and Establishing a TIF District for Kmart/Central Streetar stated the Tax Increment Financing Plan is for the establishment of the Kmart/Central Avenue District. The Plan describes the purpose and the amount of tax increment assistance that will be necessary for the development. Mark Ruff of Ehlers and Associates and Steve Bubul of Kennedy and Graven have reviewed the document and provided the summary in the packet. The next step in the process would be to hold a Public Hearing at the City Council Meeting on Economic Development Authority Meeting Minutes September 16, 2003 Page 3 of 6 September 22, 2003. Motion by Ericson, second by Williams, to waive the reading of Resolution 2003-15, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Ericson, second by Williams, to Adopt Resolution 2003-15, a Resolution Adopting a Modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopment Project and establishing the Kmart/Central Avenue Tax Increment Financing District therein and Adopting Tax Increment Financing Plan; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Resolution 2003-16~ Contract for Private Redevelopment with New Heights Development~ LLC Streetar stated the Contract for Private Redevelopment with New Heights Development, LLC is for the property that Mr. Nedegaard will own at the old Kmart site on Central Avenue. The redevelopment property is broken up into three sections: 1) housing,'2) commercial and 3)future commercial property. In the housing section Nedegaard has agreed to build 244 units of for-sale housing ranging in price from $175, 000 to $330,000 in a period of four years. Nedegaard is requesting up to $700,000 Tax Increment Financing assistance for the demolition of Kmart and other site related costs. Nedegaard will be required to build up to 1 O, 000 square feet of commercial space. At that time, if the EDA feels that Tax Increment Financing is warranted, you can negotiate that with Mr. Nedegaard. If the EDA feels that it isn't warranted, Mr. Nedegaard is still obligated to build the 10, 000 square feet of commercial space and complete that part by July 1, 2006. Nedegaard will not get any money until the entire project is finished. They will have up to 12 months from the time the development agreement is executed to put together a redevelopment plan acceptable for the EDA, if he doesn't the City will be able to use any developer of their choice. Nawrocki stated the $700,000 will be higher with the interest. The beginning we talked about $500,000 of TIF to tear down the building, with no discussion of interest and $300, O00 for the sewer costs. Streetar stated we should keep in mind that the roads, sewer and water will be totally paid for by Nedegaard. Ruff stated in the beginning Nedegaard came to the City asking for $500,000 upfront for the housing development, with no talk of interest. The City said no, they would like to see some commercial commitment to that area and didn't want to see him make too much money. Nedegaard stated he would need $700,000 instead of the original $500,000 to complete the City's commercial commitment. The City would be sitting in a very safe position by entering into this contract with Nedegaard and if the City decides to use TIF funds, it would be paid back over a period of 4-5 years. Nawrocki asked what criteria we are using to determine what Nedegaard is making on the project and does the contract call for an audit. Streetar stated it is stated in the contract there will be an audit performed. Fehst stated there is always a chance of things going wrong and that Economic Development Authority Meeting Minutes September 16, 2003 Page 4 of 6 is why we have Mark Ruff working on this with us to make sure things are handled properly and we should keep in mind that it is very usually that Nedegaard agreed to receive no TIF funding until the entire project is completed. Resident, Mr. Herringer asked if Nedegaard has to build everything by 2006, what happens to the real estate taxes in the years between. Ruff stated the City would hold the tax dollars until Nedegaard is finished with the development in 2006. Nawrocki felt this should be a City Council agreement not EDA. Ruff explained that tonight they are voting on two items; to set up a maximum amount of $100, 000 in TIF district funding and an agreement with the developer. Then the City Council will hold a public hearing on September 22na and take action on the TIF District per state law. Motion by Ericson, second by Williams, to waive the reading of Resolution 2003-16, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Ericson, second by Williams, to Adopt Resolution 2003-16, a Resolution Approving a Contract for Private Redevelopment between the Columbia Heights Economic Development Authority and New Heights Development, LLC; and furthermore, to authorize the President and Executive Director to enter into an agreement to the same. All ayes. Motion Carried. 39th & Central Redevelopment Streetar stated on August 22nd the City received a letter from Gene Mady and Doug Foss, the owners and operators of Mady's requesting the City remove their property from any redevelopment plan. The Mayor responded with a letter indicating the redevelopment of 39th and Central, including their property remains a high priority for the City. Staff recommends the 39th and Central area, including their building, remain a high priority. It is likely the EDA may have to acquire this and other properties through eminent domain. Staff asked the board if they are willing to exercise the power of eminent domain, if necessary, to acquire the properties for redevelopment. Murzyn stated the general consensus of the board is that they are willing to go forth with eminent domain to acquire the redevelopment sites, but only after all efforts to negotiate have been exhausted. NEI Proposal Streetar stated on dune lst Dunwoody College of Technology merged with NEI College of Technology. Dunwoody's intent is to sell the NEI building by December of 2003, and has been working with a real estate broker to redevelop the entire property. Staff has contacted a number of developers, but with no interest. On September 8t~, representatives from NEI presented staff a possible redevelopment concept with two primary components. Component one consists of a City Hall and Library to be located on the first floor with 60 units of moderately priced senior rental units on the second, third and fourth floors. The second option for this component would result in senior housing without a City Hall or Library. The Economic Development Authority Meeting Minutes September 16, 2003 Page 5 of 6 Anoka County HRA would own and manage the senior rental housing and the City would own its facilities on the first floor. This is the same kind of concept is near completion in the City of Waconia. County Commissioner Kordiak expressed an interest in exploring a joint library option at this site. Component two would include 20 units of market rate, single-story, for sale, side-by-side townhomes. Either of these concepts may require the City's assistance in the demolition of the existing building. Streetar requested the board direct staff to explore the concept and report to the board at the October EDA meeting. Motion by Williams, second by Wyckoff, to direct staff to move forward exploring the concepts and report at the October meeting. Upon Vote: Jindra- nay, Nawrocki- nay, Ericson- aye, Kelzenberg- aye, Williams- aye, Wyckoff- aye, Murzyn- aye. Motion Carried. ADMINISTRATIVE REPORTS 4833 University Avenue Schumacher stated at last months EDA meeting, staff was directed to propose a mid-point purchase price of $ 70, 000 to Collins Autobody for 4833 University Avenue property with Collins being responsible for the demolition of the home. Collins has agreed to the purchase price. They are working with the SBA on financing and would like to have a 24 month window for construction to start instead of the original 12 months. Staff recommends moving forward with the purchase agreement. Murzyn directed staff to move forward with the purchase agreement. Industrial Park Redevelopment Plan Schumacher stated the soil and water testing has been completed with 85 samples taken, three locations showing significant contamination, which monitoring wells are being installed at the sites based on MPCA standards for a long-term analysis. The contaminated properties were the old foundry building, Grief Brothers, and Region Truck Equipment. Information from the tests will be available in approximately two weeks in the Response Action Plan. Funding from DEED for the corrections will be applied for next month. The City Council approved a grant application with the Metropolitan Council for a one-time predevelopment grant. The study will address needs of sewer, water, surface water management, traffic, road improvements, and an estimated cost of all improvements needed prior to redevelopment of the sites. Nawrocki asked if samples were taken at the Electric Steel Castings building. Schumacher said yes and the results of the soil tests will be in the report. ADJOURNMENT Motion by Williams, second by Jindra to adjourned the meeting at 9:54 p.m. Respectfully submitted, Economic Development Authority Meeting Minutes September 16, 2003 Page 6 of 6 Cheryl Bakken Community Development Secretary HSEDAminutes2003\9-16-2003 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: October 21, 2003 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTWE NO: DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Bob Streetar BY: DATE: October 14, 2003 BACKGROUND: The bound Financial Report for September 1, 2003 draft Resolution 2003-17 is attached for review. The enclosed Financial Report lists the Summary (white), the Check History (Green), the Expenditure Guideline with Detail (blue) 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 September 30, 2003. RECOMMENDATION: Staffwill be available to answer specific questions. If the report is satisfactorily complete, we recommend the Board take affirmative action to receive the Financial Report and approve the payment of bills. RECOMMENDED MOTION: Move to approve Resolution 2003-17, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement and Payment of Bills for the month of September, 2003. EDA ACTION: H: \Consent2003 \SeptFinRep2003 EDA RESOLUTION 2003-17 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR SEPTEMBER, 2003 AND PAYMENT OF BILLS FOR THE MONTH OF SEPTEMBER, 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 September, 2003 and the list of bills for the month of September, 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, Assistant Secretary HSResolutions2003\EDA2003-17 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: October 21, 2003 AGENDA SECTION: Items for Consideration ORIGINATING DEPARTMENT: EXECUTIVE NO: 1 Community Development DIRECTOR APPROVAL ITEM: Approve Planning Services Agreements with BY: Robert Streetar BY: Dahlgren, Shardlow, and Uban for Redevelopment DATE: October 13, 2003 Planning Assistance BACKGROUND: The purpose of this memorandum is to present to EDA Commissioners a focused planning program for two City Council redevelopment priorities. These priorities are the: · 37th Avenue and Stinson Boulevard Opportunity. · 39th Avenue and Central Avenue Opportunity. The first step in redevelopment is planning, by implementing this planning program in November 2003, the City will: · Establish expectations and community support regarding the type and quality of redevelopment desired by the Community. · Be ready to effectively negotiate with, and review proposals from development interests by early spring. · Greatly, increase the probability that the City will receive Metro Council, and County CDBG funding, thereby reducing the amount of City funding required for redevelopment. Equally important, these opportunities currently include vacant, and or underutilized property, and property owners willing to sell to the City, so the City needs to act in a timely manner. Staff strongly recommends EDA Commissioners enter into an agreement with the Planning firm ofDahlgren, Shardlow and Uban (DSU) to assist the City in preparing a redevelopment plan for both of these opportunities. Staff recommends D SU because: · They have a great deal of existing resources they have developed over the last three years working on St. Anthony's redevelopment, as well as the Kmart project, and as a result this reduces the cost to the City of Columbia Heights. · They did an excellent job on the Kmart project. · They bring a wealth of experience on a number of redevelopment projects. · The City needs to act in timely manner. The table below identifies the cost of planning assistance and source of payment. Opportunity Cost Source 37th & Stinson $3,200 394 and Central $5,700 Anoka County CDBG Funds Metro Council Livable Community Grant Funds Please find attached memorandum of the planning assistance to be provided by DSU. RECOMMENDATION: Staff recommends Board approval of the planning service agreements with Dahlgren, Shardlow and Uban for redevelopment planning assistance. RECOMMENDED MOTION: Move to approve the planning service agreements with Dahlgren, Shardlow and Uban for redevelopment planning assistance; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Attachments EDA ACTION: DAHLGREN SHARDLOW AND. UBAN INCORFORATBD October 16, 2003 Bob Streetar Director of Community Development City of Columbia Heights 590 40~ Avenue N.E. Columbia Heights, MN 55421 Re.' Proposal to Assist the City with Initial Planning for the Redevelopment of the 39~ and Central Area Dear Bob: You have asked me for a proposal to assist the City with its efforts to focus the 39th and Central area redevelopment process. The goal of this effort is to organize the community's thoughts for this area, with outcome of gaining consensus on an approach to redevelopment. Based on my experience working with your community on the K-Mart site, I believe that we could accomplish a great deal in two workshops with the Planning Commission and Economic Development Authority. Additionally, input of area stakeholders and the general public would be gathered at a community issues forum. Also, I have included a task for DSU to prepare basic, preliminary concept plans for the area. Scope of Services Workshop Number One We will conduct a workshop with the Planning Commission and Economic Development Authority to identify issues regarding the redevelopment of the project area. Members of the City Council and interested citizens will also be welcome to attend. The workshop will include the following items: · Inventory, analysis, summary of site opportunities and constraints · Summary presentation of Apache Plaza Redevelopment · Issues Identification, SWOT Analysis, Visioning Community Issues Forum We will invite area stakeholders and the general public to attend a Community Issues forum to present the background analysis performed to date and a summary of the Issues Identification, SWOT Analysis and Visioning exercises from Workshop One. We will perform additional 300 FIRST AVENUE NORTH SU1TE210 MINNEAPOLIS, MN55401 PHONE(612)339-3300 FAX(612)337-5601 Bob Streetar October 16, 2003 Page 2 issue identification exercises to determine if there are any other issues to consider as part of the planning and redevelopment process for the property. Preliminary Redevelopment Concept Plans DSU will prepare basic preliminary redevelopment concepts plans for the project area to present and discuss during Workshop Number Two. Workshop Number Two We will conduct a follow up workshop with the Planning Commission and Economic Development Authority to present a summary of previous tasks and discuss basic redevelopment concepts. Members of the City Council and interested citizens will also be welcome to attend. The workshop will include the following items: · Present and discuss a smmmry of Workshop Number One · Present and discuss a summary of the Community Issues Forum · Present Issues from Forum · Present and discuss basic redevelopment concept plans · Review and discuss next steps Cost of Services Because of the amount and quality of resources that we already have assembled, we can complete the two workshops, community issues forum and prepare a summary memorandum for a set fee of $3,200. Preparation of the preliminary redevelopment concept plans will range from $1,500 to $2,500. We would conduct additional workshop meetings as directed by the City on a time plus materials basis. Thank you for the opportunity to continue our working relationship with the City of Columbia Heights. Please contact me at your convenience to schedule these workshops and discuss strategies to maximize their effectiveness. Sincerely, DAHLGREN SHARDLOW AND UBAN, INC. John W. Shardlow, AICP President and Director of Planning DAHLGREN SHARDLOW AND'UBAN INCORPO~ATBD October 16, 2003 Bob SUeetar Director of Community Development City of Columbia Heights 590 40m Avenue N.E. Columbia Heights, MN 55421 Re: Proposal to Assist the City with Initial Planning for the Redevelopment of the 37tn and Stinson Area Dear Bob: You have asked me for a proposal to assist the City with its efforts to focus the 37th and Stinson area redevelopment process. From my three year experience in the adjacent St. Anthony Northwest Quadrant Redevelopment Plan, my experience working with your community on the K-Mart site and my brief exposure to the subject area, I believe that we could accomplish a great deal in two workshops with the Planning Commission and Economic Development Authority. Additionally, input of area stakeholders and the general public would be gathered at a community issues forum. We have a great deal of existing resources, so I am confident that we can have very productive workshops without needing to spend a great deal of money. Scope of Services Workshop Number One We will conduct a workshop with the Planning Commission and Economic Development Authority to identify issues regarding the redevelopment of the project area. Members of the City Council and interested citizens will also be welcome to attend. The workshop will include the following items: Inventory, analysis, summary of site opportunities and constraints · Summary presentation of Apache Plaza Redevelopment Issues Identification, SWOT Analysis, Visioning Community Issues Forum We will invite area stakeholders and the general public to attend a Community Issues forum to present the background analysis performed to date and a summary of the Issues Identification, 300 FIRST AVENUE NORTH SU1TE 210 MINNEAPOLIS, MN 55401 PHONE(612)339-3300 FAX(612)337-5601 Bob Streetar October 16, 2003 Page 2 SWOT Analysis and Visioning exercises from Workshop One. We will perform additional issue identification exercises to determine if there are any other issues to consider as part of the planning and redevelopment process for the property. Workshop Number Two We will conduct a follow up workshop with the Planning Commission and Economic Development Authority to present a summary of previous tasks and discuss basic redevelopment concepts. Members of the City Council and interested citizens will also be welcome to attend. The workshop will include the following items: Present and discuss a summary of Workshop Number One · Present and discuss a summary of the Community Issues Forum Present Issues from Forum · Present and discuss basic redevelopment concept plans · Review and discuss next steps Because of the amount and quality of resources that we already have assembled, we can complete the two workshops, community issues forum and prepare a summary memorandum for a set fee of $3,200. We would conduct additional workshop meetings as directed by the City on a time plus materials basis. Thank you for the opportunity to continue our working relationship with the City of Columbia Heights. Please contact me at your convenience to schedule these workshops and discuss strategies to maximize their effectiveness. Sincerely, DAHLGREN SHARDLOW AND UBAN, INC. John W. Shardlow, AICP President and Director of Planning COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: October 21, 2003 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: 2 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Renew Agreement with the Greater BY: Robert Streetar BY: Metropolitan Housing Corporation DATE: October 17, 2003 BACKGROUND: The memorandum provides a summary of a consulting services agreement with the Greater Metropolitan Housing Corporation (GMHC) to provide housing services, through the HousingResource CenterTM, to Columbia Heights residents. Please find attached a letter from the President of GMHC Carolyn Olson, and a draft agreement between the Columbia Heights Economic Development Authority and the Greater Metropolitan Housing Corporation. The large majority the City's housing stock is aging. Seventy-five percent of all housing is older than 30 years, and over half is older than 40 years. Housing of this age can require substantial investment in heating, cooling systems, roofs, windows etc. to maintain their functionality, appearance and value. In addition, good housing maintains the livability of neighborhoods. GHMC plays a very important role in maintaining, and improving the City's housing stock, and as a result the City's neighborhoods. GMHC is requesting $15,000 to fund the operations of the HousingResource CenterTM for 2004. The contract would begin January 1, 2004 and expire December 31, 2004. The services provided by GMHC include: * Providing housing information to all City residents, including information on emergency assistance, housing rehabilitation, first time home buyers and limited rental information. · Providing construction management services including home inspections to homeowners considering rehabilitation, preparing scopes of work, educating homeowner on the construction bid process, evaluating bids and work completed to ensure quality and cost effective renovations, and monitoring the construction process. · Administering a number of home improvement programs including the Rehab Incentive Program, the MHFA Fix Up Fund, the MHFA Rental Rehab Program and the MHFA Rehabilitation Loan Program. · Working with City staff to secure additional funding needed to develop other housing programs such as the Senior Housing Regeneration Program or Single Family Rehabilitation Program. To date GMHC has provided 725 services to 330 Columbia Heights residents. In addition, they helped the City get $240,000 of grant funds from the Minnesota Housing Finance Agency to remove blighted homes, and replace then with 13 new for-sale homes. Commissioners may recall the open housing at 4828 5th Street, which was the first new home GMHC built. Lastly, GMHC has recently purchase 3 additional houses with multiple lots. These will be replaced with 7 new for-sale homes. A representative of the Greater Metropolitan Housing Corporation will be present at the meeting to answer any Commissioner questions. RECOMMENDATION: Staff recommends the EDA Board Approve a Consulting Services Agreement with the Greater Metropolitan Housing Corporation. RECOMMENDED MOTION: Move to enter into a Consulting Services Agreement with the Greater Metropolitan Housing Corporation; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Attachments EDA ACTION: I h: \consent Form2003\EDA Agreement with GMHC GREATER METROPOLITAN HOUSING CORPORATION ~ Twin Cities 15 South Fifth Street, Suite 710 · Minneapolis, MN 55402 phone: (612) 3390601 · fax: (612) 339-0608 e-maih smaag~gmmhc.org · webslte: www. gmhctc.org October 17, 2003 Mr. Bob Streetar Gommun~ Development Director 590 40m Avenue NE Dea~ Mr. Street~. The Gmaler Melmp~llen Housing Corpo~ion (GMHC) has b~ providing I-Iou~ngResource Cem~- sendcesto the city of ~bia Heights since Ap~ or2002. The services mat me prodded Provicrmg housing info,nation to all of your residenls including infoflnBli~ on emergerw~ assislmme, housing rehabilitaUon, first time home buyers and limited ensure qualily ~cl ~ effeclJve ~ ~1 ~ the const~cUo~ prK~ss /~erlng a nurnl:e' of llome ~emeflt prog~ms incluoing tl~ ~ Incenlive Program, the MI-FA F'~ Up Fund, the MHFA Rental Rehab Fogram and ~e MHFA Reheblialiofl Loan Program VVo~ng with cily staff to secure additional funding needecl lo clevelc~ other housing programs sucfl as the Senior Housing Regeneration Program or Single Family and seCu~d funding from the Minnegofa Housing finance Agenc~ ancl Meflx~x~ Council for a home which has been c~npleted and sold. We rece~y purchased 3 addilional house~ (each has multiple lots - one three and the olhers two). We will demolish the existing homes and build 7 new Attached is the Consuaant Serdces Aomement for 2004. We are requesting $15,000 for 2004, We have enjoyed the partnership that we have developed with the city of Columbia Heights and look forwa~l to woflflng with you in the future on other housing projects. Thank you for your consideration. Soul hslde Northeast NorthMet ro 3749 Ceda~ A~nue Smith 909 Main Stze~t N[ [ 1 ~ C~ ~d I Mid.polls, MN 55~7 ~innea~lb, MN S~413 Sh~, MN S5126 ~: (612) 7~ - 7141 ~: (612) 378 - ~85 ?h: (651) 486 - 7401 Northwest 2140 - 441h Aven~e No~th Mimmapolis, MN 5541Z Ph: (612) .~1~ - 3~."{3 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY COMMUNITY DEVELOPMENT DEPARTMENT CONSULTANT SERVICES AGREEMENT THIS IS AN AGREEMENT entered into the 21 st day of October 2003 by and between the Columbia Heights Economic Development Authority hereinafter referred to as the EDA, and the Greater Metropolitan Housing Corporation of the Twin Cities (GMHC), a non- profit corporation organized and existing under the laws of the State of Minnesota, hereinafter referred to as the Consultant. WITNESSETH: WHEREAS, the EDA desires to hire the Consultant to render certain iechnical, professional, and marketing assistance in connection with such undertakings of the EDA. NOW THEREFORE, the parties hereto do mutually agree as follows: Scope of Services. The Consultant shall provide all the necessary technical rehabilitation advisory services, loan administration and fundraising for the Programs as follows: mo Provide all HousingResource Center services to residents of the city of Columbia Heights out of its Northeast Minneapolis office with scheduled visits to Columbia Heights properties. These services include the following: 1) Provide building evaluations to residents; 2) Provide information on city building code, permit requirements and process; 3) Assist residents in preparing written scopes of work for renovation projects; 4) Provide construction cost information to residents; 5) Educate homeowners on the construction bid process; 6) Evaluate bids and work completed to ensure quality and cost effective renovations; 7) Monitor the construction process; and, 8) Assist residents with financing of projects. 9) Assisting First Time Home Buyers with training 10) GMHC through its Housing Resource Center will makes its new construction/housing rehabilitation program available to the city of Columbia Heights. B. Develop financing programs for renovation projects as requested by the EDA. Co Assist the EDA staff in securing additional funding needed to implement all program elements including an application for the Minnesota Housing Finance Agency for the Rehab Incentive Program. Term. This agreement shall be effective from January 1, 2004 and shall continue through December 31, 2004 and reviewed by October 1 of each successive year by the Consultant and the EDA for services for the following year. Compensation. The fees for the Consultant services shall be paid by February 15, 2004. The fees for service by the Consultant will be $15,000. If the agreement is terminated by either party prior to December 31, 2004, the EDA will be reimbursed a prorated amount of the $15,000 fee. This Agreement can be terminated by either party with a 30-day notice. Insurance. During the term of this agreement, the Consultant shall obtain and maintain workers compensation, comprehensive general liability, and automobile liability insurance. Comprehensive general liability insurance shall have an aggregate limit of $2,000,000. Upon request by the EDA, the Consultant shall provide a certificate or certificates of insurance relating to the insurance required. Vo Indemnification. The parties shall indemnify and hold harmless each other and their officials, agents, and employees from any loss, claim, liability, and expense (including reasonable attorney's fees and expenses of litigation) arising out of any action of the respective parties in the performance of the service of this contract. VI. Assignment. This agreement shall not be assigned, sublet, or transferred without the written consent of the EDA. Conflict of Interest. The Consultant agrees to immediately alert the Executive Director of possible contractual conflicts of interest in representing the EDA, as well as property owners or developers on the same project. Conflicts of interest may be grounds for termination of this Agreement. THIS AGREEMENT was adopted by the EDA on the 21 st day of October 2003. ATTEST: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY THIS AGREEMENT was accepted by ,2003. WITNESSES: Don Murzyn, Jr., President Walter R. Fehst, Executive Director on the __day of GREATER METROPOLITAN HOUSING CORPORATION of the Twin Cities, a non- profit Minnesota corporation Its President 2 RESIDENT COUNCIL MEETING MINUTES OF OCTOBER 6, 2003 The meeting was called to order at 7:00 p.m. by President, Dennis Ecklund Jr. The Pledge of Allegiance was said. Dennis thanked Crestview for the picnic for residents. Dorothy Schaffer thanked everyone for all their help making the Bazaar a huge success. Management Report Karen Fantle, the new 30 hour per week housing administrator was introduced. She introduced herself to residents and stated she looks forward to talking to everyone. Announced the window washers information and prices will be given for November 1st. Other companies will be contacted. The Secretary report was given. The Treasurers reports were given. A Grand Total of $3,462.63 was received from the Bazaar proceeds. Entertainment Report by Priscilla Cross · The Crestview van is not available for use on fall trips. · First Lutheran's bus will be used for Wednesday, October 8, 2003 to go to the Apple Orchard at 12:30 p.m. · On October 31st, Halloween Bingo at 6:00 p.m. with coffee and doughnuts to follow. · November 12th KFC Dinner at 5:30 p.m. Sign up is October 5,6 and 7th. · December 13th is the Christmas Dinner. Caterer to be chosen plus menu. Welcome Committee introduced David McNaully a new resident. Ecklund announced going away party on October l0th at 2:00 p.m. with a present, cake and coffee for William Jones. Dorothy Shaeffer and Marion bought a desk clock and pen engraved with his name on it. Old Business- Two dryers are down. Money should be available for replacement. Jindra will contact Streetar. - A crew of residents will clean up outside of Parkview. - The bird bath will be disassembled and stored for winter. New Business- · Pat & Rueben gave an update on Japanese lady beetles. Stated residents should vacuum them up and dispose the bag properly. The drawings for $5.00 gifts were held. Meeting Adjourned at 8:00 p.m. Respectfully Submitted, Pat Jindra, EDA Representative 0 0 Od Z 0 0 0 0 o .C C 0 0 0 0 OMVJ~'IIIOB NOSNI.Lg 0 0 0 0 Z03 0 0 o 0 (]YOtl ;IMY'I a, vA='lnoe NOSNI.LS O3 0 0 ! 1 o t~ o 0 t~ 0 0 0 0 0 0 0 4~ o 0 ,lid 0 0 U.I 0 o 1,1,1 ® Q 8 o,I o§§oo oo o ~ o~ o® e~ 0 imm 0 0 jmmmm~nmmnnm]l E~EI-mm ~mll ~tlj,{I ..mm,,'.. ~1. mmll ~]l;:l '],ii ~1 ,,~-11"'.~ jllm,i Jllll 11 '111 iJmJl~Jmjl , ~ll Nm ~llJ ~1 I m I o o 0 0 0 0 0 0 0 0 0 0 0 0 Z LIJ Z U.I Z ...= o ._~ -oO ~=~ .~ ~ ~-~ ~-~ ~ ~ o.- '- ~ o mOo o o.- ~ ~._ 0 0 0 0 or) o o &,,Iff 0 0 0 0 o OJ ~_~ 00. 6 .E 0 0 0 0 ~-c .z o E~o~8 F- ~ (D rr (D 0~ o o