HomeMy WebLinkAboutEDA MIN 03-16-04ECONOMIC DEVELOPMENT AUTHORITY (EDA)
REGULAR MEETING MINUTES
March 16, 2004
CALL TO ORDER/ROLL CALL
President, Murzyn called the meeting to order at 7:04 p.m.
Present: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams,
Tammera Ericson, and Bruce Kelzenberg
Absent: Bruce Nawrocki
PLEDGE OF ALLEGIANCE
CONSENT AGENDA
Approval of Minutes
Financial Report and Payment of Bills
MOTION by Jindra, second by Williams, to adopt the consent agenda items as listed. All ayes.
Motion Carried.
ITEMS FOR CONSIDERATION
Approve Contract for Asbestos Abatement of NEI Buildin~
Streetar stated staff sent out 13 bidding packets of which eight were received. The bids include:
the removal of all friable asbestos, and the transite panels in room 417, but does not include the
roofing-patching compound, which will be addressed before demolition as it requires drilling
holes in the roof. Anoka County has indicated we can reallocate CDBG grant funds from the
sale of 4607 Tyler to pay for the abatement. Stacy Kvilvang from Ehlers and Associates assisted
staff in the bidding process. Southern Environmental was the lowest bidder at $48,615 and
Dennis Environmental was the highest at $198, 700. Streetar stated the asbestos removal takes 4
to 6 weeks.
Ericson asked if the asbestos removal and demolition go hand in hand or does it make sense to
do the asbestos abatement regardless what is determined about the removal of the building or
should we have the discussion on the building removal before we make a final decision on the
asbestos removal. Streetar stated he felt it made sense to talk about the demolition first.
Williams stated he attended a walk through last week with Bruce Nedegaard, Gary Peterson and
staff and felt the building shouldn't be torn down. Streetar read a letter from Bruce Nedegaard
stating after touring and trying various layouts for the building, he determined the building
should be demolished, recommended the City Council, the EDA and Planning and Zoning
Commission show strong commitment to the residents that they are behind building a
Community Center, encouraged getting residents involved in the planning process, and was
hopeful the City could get a new City Hall, Library, and Community Center over the next few
years.
Wyckoff stated she would like to table the demolition and asbestos removal until next month, so
we can explore every option for the site and asked if the demolition bid includes saving the
pillars, banister's, etc. in the building. Streetar stated the bid did include the structural items
being saved.
Economic Development Authority Meeting Minutes
March 16, 2004
Page 2 of 5
Streetar stated there are three questions the board needs to ask: 1) is the building salvageable as
developers, architects and the report from the building engineer felt it wasn't; 2) is the end
product going to be something that people will be willing to pay to use it versus the facilities in
Fridley and St. Anthony; and 3) what are we going to use the building for. Williams stated he
would like to see something determined by next month as to what the building site should be used
for.
Murzyn, dr. stated, we need to take control of the gyms, whether it's with the school board or the
City. A Library and City Hall would be great combining a City Center with a gym. The City
Council should get behind this project. Whatever the City builds it should be nice, something to
remember our City by, and would be acceptable to new families coming into our community.
Streetar stated he knows someone that works for Kraus Anderson who is willing to work with a
group of residents, on the Community Center project without necessarily getting the job and may
volunteer his services. Peterson stated he would talk to Streetar after the meeting.
Peterson asked if the board tabled the demolition, what does that do to the bids and stated there
is a total of $4,000 in the Community Center fund from fundraisers. Streetar stated staff has
talked to the low bidders for the asbestos abatement and demolition, which agreed to extent their
bid for a period of 30 days. Also, Anoka County contacted him today to say that because the
building is over 50 years old and if we want to use community development block grant funds we
need to have a historical review completed to determine if it is eligible for a historical
designation. If it not eligible, we send the report to the county and if it is eligible, we need to
hold a public hearing for the public to determine if there is a viable use, which takes
approximately 4 to 6 weeks.
Wyckoff asked Fehst if the EDA could get G.O. Bonds for this project without raising taxes.
Fehst stated we could and felt it would be reasonable for the City to finance a portion of the total
with G.O. Bonds and tax residents approximately $50. O0 a year.
Motion by Wyckoff, second by Williams, to table both the asbestos abatement and demolition
items until the April 20th EDA meeting. All ayes. Motion Carried.
Motion by Murzyn, second by Ericson, to strongly encourage City Council to consider the NEI
building for a City Center, which would include City Hall offices, a Library and a Community
Center. All ayes. Motion Carried.
Approve Contract for Demolition of NEI Building- Tabled until April meeting. (See above
motion)
ADMINISTRATIVE REPORTS
Industrial Park Redevelopment Update
Schumacher stated at the City Council's March 8th meeting, contracts were approved for the
engineering feasibility and contamination clean up. From the reports, the City Council will
receive detailed information addressing sewer, water, roads, and surface water management
Economic Development Authority Meeting Minutes
March 16, 2004
Page 3 of 5
needs related to the redevelopment project. Specifications will be drafted for future bidding of
soil and water clean up, building demolition and asbestos abatement. A Predevelopment
Agreement outlining the responsibilities of the City versus, Schafer Richardson, the developer
will be prepared and presented to the EDA in April. Staff is working with the owners of Buckles
and Buckles and Kramer Davis on purchasing their property, SEH is doing the feasibility study
and reviewing the preliminary site plan, provided by Schafer Richardson.
40th & University
Schumacher stated he is still working with the owner of MGS to purchase the property. They
have purchased a site on 36th & Central and has put up a sign to rent out the current building.
Haugland Companies tried to market the corner with no results. Streetar stated Anoka County
Is encouraging the City to allocate the CDBG funds before May 1st, 2004.
Resident, Gary Peterson stated he and Williams are interested in a joint venture to develop the
site into a Town Square building with two stories, similar to the town square located at Hwy 55
and Winnetka, approximately a $1.4 million dollar project, 14,000 sq. fi. building, and with an
agreement for marketing the site for a period of 120 days. Peterson passed around a rough draft
of a design concept to give the board an idea of what they are proposing to build on the site. The
second idea was to have two residential townhomes above the town square, which would mean
the property would have to be rezoned.
Wyckoff stated she did not want to see housing on that corner, but some type of coffee shop,
bagel shop, etc. Streetar stated he felt housing wouldn't work at the site and that the board
should really look at what they think would work there l O years from now. Murzyn suggested
Peterson make up a formal proposal and present to the EDA.
4855 University Avenue
Schumacher stated the City bought the property and was working with the owner of Collins
Autobody to purchase the property and expand his business. The board counter offered the sale
price to the owner of which he has recently backed out of his interest in buying the site. Staff is
currently work with Kevin Hansen, Public Works Director to combine the demolition of the home
with others that his department is going to be tearing down. Murzyn, ,Ir. directed staff to go
ahead with the demolition of the building process.
Kmart
Streetar stated Bruce Nedegaard is preparing a redevelopment concept plan that includes the
Savers building, Buffalo Wild Wings, Welle Auto and Subway commercial buildings. Nedegaard
is also working with Aldi's Foods to develop the corner of 47tn and Central where Arby's
Restaurant is currently located. The grocery store carries name brand products with their label,
where the average family of four can save up to $40. OO per week. Aldi's staff also stated his
contact from Chili's Restaurant is interested in building on that block. It is expected the new
concept will be brought to the EDA for review and feedback in April. Staff is working with Kevin
Hansen to improve the look of the walk bridge that crosses over 49th and Central.
Economic Development Authority Meeting Minutes
March 16, 2004
Page 4 of 5
37th & Stinson
Streetar stated Lenn Pratt, a developer met with staff regarding his interest in the 37th & Stinson
site with upscale housing ranging from $300,000 and up, overlooking the lake. Fehst stated he
told Pratt the City wants something as nice as St. Anthony is putting up in their redevelopment
project.
39th & Central
Streetar stated Burger King, which is owned by Nath Companies of Bloomington has indicated
they are aware of the City's intent to redevelop the area and are interested in selling. White
Rental will be moving into their new facility by February 1st, 2006. The Heights Theatre owner
has stated he wants to add an addition theatre to his building, and will only wait for the City for
five years to determine what they are going to develop on the block. Murzyn, ,Ir. directed staff to
start the appraisals, TIF inspections and ground work, on the Burger King and White Rental,
and other properties and bring back to the EDA.
Hilltop Meetinl~
Streetar stated he and John Shardlow of DSU have been invited to attend the Hilltop City
Council meeting on April 5th to give an overview of all the proposed redevelopment sites in
Columbia Heights.
CVS Pharmacy
Streetar stated the City of Minneapolis has confirmed that a new CVS Pharmacy will be going in
on the corner of 37t~ and Central where the Hi-Low Motel is located.
Truth in Housine
Streetar stated he has been working with Fehst checking into how other cities administer their
Truth in Housing program. The cities of Crystal, New Hope, Minneapolis, St. Paul, Richfield
and St. Louis Park all have Truth in Housing in place. This program helps to preserve the
Housing stock. Staff would like to bring this program to the City Council for adoption. Fehst
stated, he has been contacted by many realtors stating young families are buying homes only to
find out they can't afford the repairs that are needed. Murzyn, Jr. directed staff to obtain more
information on Truth in Housing and bring it back to the EDA, which could possibly recommend
to City Council for adoption.
3912~ 3924 and 3928 Central Avenue
Streetar stated Marcia White at 3912 Central contacted staff stating her house is for sale for
$179,900, which is non-conforming, with a little over 5, 000 sq. fl. Nancy Ebner, the property
owner of 3924 and 3928 Central, heard the City has plans for redevelopment along Central
Avenue, stated she is ready to retire and is interested in selling her home to the City. This may
be the opportunity to buy these properties and redevelop the sites to something that better fits
our needs along Central. Murzyn, ,Ir. directed staff to obtain appraisal, TIF inspections and
bring this item back to the EDA.
Economic Development Authority Meeting Minutes
March 16, 2004
Page 5 of 5
Columbia Heights Hotel
Streetar stated Susan Meltier, the owner of the Columbia Heights Hotel contacted staff asking if
the City would be interested in purchasing the hotel, wants $250,000 and that she owes $40,000
in back taxes to Anoka County. Murzyn stated this isn't an area of consideration at this time,
possibly in the future. Staff will keep the board informed about any further discussions.
Dental Office on Universi .ty
Wyckoff asked if staff has heard what the dentist at 5207University is going to do with the oM
building. Streetar stated he hasn't heard anything, other than some discussion to build a new
Liquor Store on the site from City staff.
2005 BUDGET
Streetar stated it is time to start preparing the 2005 Budget and asked the board members to
starting thinking about it and advise him of any ideas or questions they may have.
ADJOURNMENT
President, Murzyn, Jr., adjourned the meeting at 8:45 p.m.
Respectfully submitted,
Cheryl Bakken
Community Development Secretary
H:~EDAminutes2004XMarch 16, 2004