Loading...
HomeMy WebLinkAboutEDA MIN 04-27-04 SpecialECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL WORKSESSION MEETING MINUTES APRIL 27, 2004 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 8:12 p.m. Present: Don Murzyn Jr., Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg Patricia Jindra- arrived at 8:20 pm. PLEDGE OF ALLEGIANCE ITEMS FOR CONSIDERATION COLUMBIA HEIGHTS INDUSTRIAL PARK REDEVELOPMENT Introduction and Opening Remarks Schumacher stated this worksession is to give the board a brief overview of the proposed Industrial Park Project, with no action on this item tonight. Last year Hoisington-Koegler put together two plans for the Industrial Park redevelopment site; one showing the scenario as all housing and the other showing 2/3 housing with the northerly piece proposed for industrial. After the plan was approved, staff made application to the state for a contamination investigation grant, which was approved, we hired ProSource to perform the investigation, document the types of contamination they found, put a plan together and provide it to the MPCA. Staff made application to Metropolitan Council for a $1.3 million dollar grant, which we received to clean up the contamination, and made application for a predevelopment grant for the engineering and infrastructure, which was also approved. All soil and water testing is complete and have installed five deep-water monitoring wells. The funds received to date are to be used for Phase I only. It will be a total of $4.6 million for the entire 30-acre project. S.E.H. has completed a preliminary parkway design, and preliminary surface water management model. Over the past 4 to 5 weeks, Steve Bubul, has been working with staff to put together a Predevelopment Agreement. This agreement sets up guidelines for both the City and the developer as they move forward to create a final development contract and will state exactly what the City and developer will be responsible for. The developer would be responsible to build approximately 145 units and approximately 15,000 square feet in Phase I. Steve Bubul, Kennedy & Graven, stated it is anticipated the City and the EDA would be involved as the City would do the Zoning and Planning documents and the EDA would be responsible for the TIF funding and eminent domain if necessary. Therefore, in the end it will be a three party agreement. HISTORY AND DEVELOPMENT PROPOSAL Brad Schafer, one of the Principals of Schafer-Richardson introduced his partner Kit Richardson, who is the other principal officer and David Frank, project manager. Schafer and Richardson started their company nine years ago, they buy property that someone else hasn't been able to move, they have 12 employees, a subsidiary company which provides management with approximately 60 employees, to date they have done 27projects totaling about 4 million square feet and valuing in excess of about $140 million dollars, City Business, NEIOP and Minneapolis Historic Preservation has given them awards. Their portfolio has 18 buildings, just Economic Development Authority Meeting Minutes April 27, 2004 Special Worksession Page 2 of 3 over 2 million square feet, with current projects totally 92 units. Schafer showed pictures of the 710 Lofts development, which is a 60 unit building just off Washington and 4th, market price range of $160 to $350,000, the smallest unit as 885 sq. fi., and the upper unit has 16 to 17, 000 sq. ft., averaging $250 to $350 per month for association fees. The 720 Lofts development will be 80 to 85 unit building, with similar architecture as the 710 Lofts, they hope to break ground in September of this year. They acquired the Pillsbury A-Mill Redevelopment site last year and are preserving the old limestone A-Mill building as it is a national landmark building. The Phoenix Lofts development will be a 150 unit building, $40 million dollar project that they are waiting for City approval on and hope to start the project at the end of the year. Schafer stated their offices are located in the old bank's building in Minneapolis. They are interested in redevelopment in Columbia Heights as: 0 they like to do redevelopment projects; and 2) because they are a major landowner in the development area. Schafer stated their plans show 250 Town houses, 196 Condominiums, 15, 000 square feet of Commercial on Jefferson and 39th, predominately 70-80%for sale units, their goal is 100% owner occupied, single family home land would be 1/20th of the development, the total square footage of these buildings is approximately 900,000 square feet if it was built as drawing, which includes the garages. They work with ESG Architectural ftrm. Everything East of 5th is in Phase 1 and everything West of 5tn is in Phase II. Theypropose to start with Phase 1 as they are the primary owner of the land. In Phase II area they are in the process of negotiating to purchase the land are having trouble getting together with the owners of Grief as they aren't locally owned, otherwise negotiations are going quite well. At this time there is a lot of mediation, planning, meetings, public hearings, pre-construction planning, etc. to be done. The total project cost is going to be approximately $90 to $100 million dollars. Murzyn asked as they hire out their construction, do they plan to keep the Commercial part of the project. Schafer stated they could rent, sell or lease it out, but he isn't sure at this time. Wyckoff asked if they are anticipating putting in a community center, pool, health club or anything like that and stated she attended a conference recently, where they said a lot of lSt ftoor retail or business with rental housing units above owning the building is quit common. Schafer stated they would be putting in a pond to accommodate the park area across the street and yes, the live and work in the building is quite popular today. Wyckoff stated St. Anthony is marketing fiber optics and asked if Schafer-Richardson is considering this option in their project. Schafer stated they are not aware of any residents asking for Fiber Optics at this time, but could certainly work with that option, if requested. Streetar stated as they design the projects, they would have focus group meetings to see what will market. Richardson stated they would. Schafer stated they would have multiple product types for review by the City and residents. Resident, Caroline Bardwell asked if there would be enough parking for the housing development so they won't have to use Huset Park. Schafer stated there would be 17 units per acre with two parking spaces per unit. Nawrocki stated 17 units per acre is pretty high density. Economic Development Authority Meeting Minutes April 27, 2004 Special Worksession Page 3 of 3 Streetar stated Nedegaard's pro 'ect on ~J Central will be 18 units per acre with 2 garage stalls per unit, and that he has had 80people call with interest in the homes. Nawrocki asked if they would be willing to put covenants in the agreement so that it would be all owner occupied. Schafer stated he didn't think that he could Williams stated the board should look at what we have on the site now and what we could have there and also asked what our next step is. Streetar stated the board would review the predevelopment contract. Nawrocki stated we should think about the loss of Industrial land, which would be a loss of jobs in the City. Streetar stated that Dale Glowa from United Properties stated when the industrial park market comes back, Columbia Heights would be fiflh on the list, would take all of the risk, and that there would not be enough TIF funding to pay for it. The developer isn't going to spend $100 million if the City isn't ready to work with them to develop the area. Bubul stated it is important to get substantial grants to pay for costs of the project as you go forward. Now is the time to start looking into some of the issues in the Preliminary Agreement. SET NEXT MEETING TO REVIEW PRELIMINARY DEVEI,OPMENT AGREEMENT Murzyn thanked Schafer-Richardson for their presentation. Nawrocki stated he is opposed to a meeting without bringing this to the public ftrst. Wyckoff stated she would bring the idea to the next Huset Park meeting and the Ist Wednesday of the month meeting with the Mayor. Fehst suggested we get the Rising to New Heights group involved also. Murzyn suggested putting this item on the May 18th regular EDA meeting. Schumacher stated he felt it necessary that Bubul be in attendance and can't be there on the 18tn. Ericson suggested we hold a Special EDA meeting on May It)tn at 7pm in Council Chambers, televised for residents and move the City Council meeting to start immediately after the EDA. Murzyn directed staff to make the arrangements for the special meeting as suggested by Ericson. ADJOURNMENT President, Murzyn, Jr., adjourned the meeting at 9:34 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H:~EDAminutes2004XApri127, 2004 Spec. Worksession