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HomeMy WebLinkAboutEDA MIN 02-02-04 SpecialECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES FEBRUARY 2, 2004 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 6:40 p.m. Present: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE ITEMS FOR CONSIDERATION ADOPT RESOLUTION 2004-02, APPROVING AND SPECIFYING TERMS OF THE INTER-FUND LOAN FOR THE NEI PROPERTY Streetar stated staff provided the board with the Resolution the City Council approved, which stated the loan terms for the $600,000 that the EDA will use to buy the NEI property. The procedure for this type of transaction is that the City Council approves the loan terms and then the EDA has to except the loan term. The loan terms state that the City will loan the EDA $600,000 at a rate of 4% for a term of up to 15years. This is done so that in the event the EDA chooses to use Tax Increment Financing and redevelops the property privately, in order to repay the TIF funds, you need to have the loan terms in place before the money transfers. If the board decides not to use tax increment financing or are unable to use it, the City Council, by resolution can prescribe any terms of the loan. The loan can be paid back with tax increment money, sale of land or any source of revenue available to the EDA. Nawrocki ask where the funds would come from to board up the building and tear it down. Streetar stated there has been no decision to board up the building and staff has a grant application submitted in the amount of $3OO, OOO from CDBG funds. $! 00, 000 will come from reallocated CDBG funds from the sale of 4607 Tyler. Fehst stated Henry Henry, City Maintenance man, will be available to do the daily checks and on weekends that are required by law. Henry does have some background with the building as he worked their part time. Streetar stated staff is preparing bids for asbestos removal. Once they are received, staff will come back to the EDA to decide Who will demolish the building and who you want to remove the asbestos. It will take about 4 to 6 weeks to remove all the asbestos. You are looking at 90 to 120 days by the time the demolition will occur. Streetar stated the broker said it costs approximately $100, 000 per year to operate the building, which includes cable, telephone, electricity, etc. Streetar estimated it would cost between, three to five hundred per month, as we won't be using that much utilities. Staff obtained an appraisal on the land only, which was based on the current zoning of R-4 and looking at approximately 20 units per acre, it wds appraised at $1,066,000. If the EDA choose to redevelop it as residential, for every unit of housing you would get approximately $t0,000 to $11,000 in land sale. Nawrocki was concerned about where the money would come from to heat the building. Streetar Economic Development Authority Meeting Minutes February 2, 2004 Special Page 2 of 2 stated earlier this year the EDA developed a fund 420, which is being used for redevelopment of projects in the City and would be more than enough to pay for the utilities. Nawrocki asked if the security system comes with the building. Streetar stated the system is part of the sale and is paid for monthly. Fehst stated staff would be looking into a system like Murzyn Hall has with the Police Department. It is directly wired into the computers in police cars. Streetar stated maybe Public Works could plow out the sidewalks, so the building looks. Wyckoff asked what the board felt about having an open house this spring where residents could come in and wa& through the building one ftnal time, with possibly something in the gym. Fehst stated we would have to make sure we are covered with our insurance, just incase someone would fall, but agreed it would be a good idea. : Fehst stated Wyckoff has expressed interest in having a sale of different things, like Coca-Cola items. Wyckoff asked if there is anyone that would be able to go into the building and start disassembling items for the sale. Fehst stated maybe the Rising to New Heights group would be interested in that as long as the funds received were put back into the community. Ericson, who is also on the Rising to New Heights Committee, stated it would possibility be something they would be interested in. Nawrocki stated he would like to see the first floor boarded up for security. Williams stated, if we tell the Police to keep an eye on the building, we wouldn't have any trouble. Wyckoff stated the building has a lot of houses around it and didn 't feel there would be a problem with people breaking into the building. Murzyn suggested we wait until after we purchase the building, decide when we are going to have the open house and after that time, board it up if necessary. MOTION by Wyckoff, second by Williams, to Adopt Resolution 2004-02, Approving and specifying terms of the Inter-Fund Loan for the N.E.I. Property. All ayes. Motion Carried. Other Business Streetar stated he met with~Bruce Nedegaard this mo'rning. The ftrst week in March, he wants to come to the EDA to present his proposal for the Sheraton Hotel development at the corner of 49tn and Central and get feedback from the board. ADJOURNMENT Motion by Williams, second by Wyckoff, to adjourn the meeting at 7:00 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H:~EDAmmutes2004~February 2, 2004Special II II II