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HomeMy WebLinkAboutEDA MIN 09-21-04ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES September 21, 2004 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 7:09 p.m. Present: Don Murzyn Ir., Patricia Ji'ndra, Julienne Wyckoff, Bobby Williams and Brace Nawrocki, Tammera Ericson, and Brace Kelzenberg PLEDGE OF ALLEGIANCE CONSENT AGENDA Approval of Minutes Move to adopt the minutes of the August 17, 2004, regular meeting as presented in writing. Financial Report and Payment of Bills Move to approve Resolution 2004-08, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for August, 2004 and approving payment of bills for August, 2004. Nawrocki questioned, why does it state under Parkview Villa North cashflow, revenue rental income, the year to date actual is $170, 923, when the year to date budget is $223,713. Streetar stated this is due in part to the fact that Crest View was certifying residents by their net instead of gross incomes and it will take until the end of the year to make all of the adjustments. Motion by Williams, second by Jindva, to adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION Resolution 2004-06~ Acquisition of Bur~er King Property, Streetar stated the board directed staff to go back to Nath Companies to negotiate an agreement for the purchase of the property. At this time staff is recommending the purchase price of $800,000, which includes land, building, furniture, fixtures and equipment as well as relocation assistance as laid out in the enclosed agreement. The contingencies include: 1) completing phase 1 environmental review; 2) secure demolition and asbestos abatement estimates; 3) perform tax increment inspection and 4) secure financing from City Council. Funds would come from a loan from the City using the parking ramp fund 290 and Sheffield fund 410. Once the property is purchasdd the building will be demolished using approximately $40,000 of CDBG funds left over from the sale of 4607 Tyler Street. In addition, Bauer Construction estimates the salvage value of Burger King is expected to be $1,000 to $5,000, which couM also help payfor demolition and asbestos abatement. Tom Letness, the owner of the Heights Theatre has contacted staff with interest in adding 2 or 3 more screens. If that would work out, then on the White Rental property a nice restaurant would be ideal as people come from all over the cities to the Heights Theatre. Dan Y~qlson, a relocation specialist stated Burger King is legally entitled up to $200, O00 for FF&E, $100, O00 for relocation, and an additional $300,000 in compensation, for a total of $1,100,000. He recommended $800,000 settlement because the $300, O00 for FF&E, with relocation included results in a $300,000 savings for the ED,4. Economic Development Authority Special Meeting Minutes September 21, 2004 Page 2 of 5 Murzyn, Jr. stated he felt that using $800,000 in funding isn't an issue as we can always come back by the development area and say we did that. Wyckoff also felt confident that the offer was agreeable and with buying Burger King and White Rental, then Mady's should want to redevelopment their site. Ericson stated she didn 't feel obligated to buy the property, we could walk away, but it sounds li'ke we could sell it to the theatre or someone else quicMy for redevelopment. Fehst stated staff has many priorities, a short amount of staffing and therefore felt the EDA should buy the property or totally drop the development ideas for the site. Motion by Wyckoff, seconded by Ericson, to waive the reading of Resolution 2004-06, there being aa ample amount of copies available to the public. Ail ayes. Motion Carried. Motion by Wyckoff, seconded by Ericson to Adopt Resolution 2004-06, a Resolution Approving the purchase of land between the Columbia Heights Economic Development Authority and Nath Property Corporation, L.P., A Minnesota Corporation; and furthermore, to authorize the President and Executive Director to enter into aa agreement for the same. Upon Vote: Jindra- Aye, Nawrocki- Nay, Williams- Nay, Ericson- Aye, Kelzenberg- Aye, Wyckoff- Aye, Murzyn- Aye. Motion Carried. Resolution 2004-09, Approving an Inter-Fund Loan for Burger Kine Streetar stated Resolution 2004-09 is a resolution approving an Inter-Fund Loan to purchase Burger King in the amount of $800, O00 from the City to the ED~4 with funding coming from Fund 290 and 410, subject to City Council approval to provide the loan. The loan couM be repaid from proceeds from land sales, tax increments generated from a futureproject, or other sources available to the ED,~. Motion by Ericson, seconded by Wyckoff, to waive the reading of Resolution 2004-09, there being aa ample amount of copies available to the public. All ayes. Motion Carried. Motion by Ericson, seconded by Wyckoff, to' Adopt Resolution 2004-09, a Resolution Approving a loan for $800,000 fi.om the City of Columbia Heights to the Columbia Heights Economic Development Authority for the purchase of a property located at 3939 Central Avenue with funding to come from Funds 290 and 410, subject to the City Council's approval to provide the loan in the same amount and under the same terms. Upon Vote: Jindra-Aye, Nawrocki- Nay, Williams- Nay, Ericson- Aye, Kelzenberg- Aye, Wyckoff- Aye, Murzyn- Aye. Motion Carried Asbestos Abatement Change Order for NEI Building $chumacher stated the demo is going well. Originally when the bid came in from Southern Minnesota Environmental for the asbestos removal, staff wasn 't able to access the property, so the bid was submitted by square footage. Once the asbestos removal began the contractors found more hazardous materials that needed to be removed prior to demolition of the building. Staff received three change orders to the original bid: Change Order #1 was for vermiculite removal in the arr~unt of $11,300; #2 was for transite panels in the fan room in the amount of Economic Development Authority Special Meeting Minutes September 21, 2004 Page 3 of 5 $5,071.50; and #3 was for sink, fire doors, more transite panels and vermiculite in the amount of $3,555.00. The state preformed three inspections during the removal period. Stacie Kvilvang from Ehlers & Associates stated Southern Minnesota Environmental has sent another change order for some additiOnal piping, which we are denying, based on our contract as they failed to notify the City prior to removal. Motion by Kelzenberg, seconded by Ericson, to Approve the change orders submitted by Southern Environmental Technologies Inc. for additional vermiculite removal in the mount of $11,300, additional transite panels in the fan room in the amount of $5,071.50 and removal of sink, fire doors, transite panels and vermiculate in the amount of $3,555.00. These change orders shall be funded by surplus, reallocated Community Development Block Grant dollars from project number 327, the sale of 4607 Tyler Street program income. All ayes. Motion Carried. Resolution 2004-10, Authorizing Condemnation by Quick Take for 322 40t~ Schumacher stated staff made every attempt possible to purchase the property at 322 40~ avenue with no prevail, an appraisal was conducted by the City, staff waited until Anoka County appraised the property per the owners request. Dan ~ilson, Wilson Development met with the owner today. The owner agreed to $225,000 purchase price but had to check with his wife, so at this time he still hasn't signed an agreement. With the $150,000 CDBG fundingfor the purchase, we need to close on this deal soon or loose the funding. Murzyn, Jr. asked what is a quick take. Schumacher stated it guarantees we get the property. Ericson stated they could adopt the resolution for the quick take tonight and abandon it at anytime, if the owner gives us a purchase agreement. Williams excused himself from the decision, as he is one of the Partners involved in redevelopment of the site. Motion by Kelzenberg, seconded by Nawrocki, to waive the reading of Resolution 2004-10, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Kelzenberg, seconded by Nawrocki, to Adopt Resolution 2004-10, a Resolution authoriz'.mg Condemnation by Quick Take for the property located at 322 40th Avenue NE (PIN #35-30-24-31-0118) for redevelopment purposes. Upon Vote: Jindra-Aye, Nawrocki- Nay, Ericson- Aye, Kelzenberg- Aye, Wyckoff- Aye, Murzyn- Aye. Motion Carried. Contract with Maxfield Research~ Inc. to perform a Demand Analysis Streetar stated the City Council, EDA and residents have all talked about the need for a Community/Recreation Center. Maxfield Research Inc is proposing to perform a Demand Analysis, which would analyze existing facilities, look at other amenities in the area and specify the number of gymnasiums needed in Columbia Heights. The analysis would take 45 days, at a total amount of $7,000. The Sports Busters have agreed to pay $2,000; the school board is meeting tonight to vote on putting in $1,000, which would make the City's portion $1,000. Local residents, Schumacher and Streetar can work with Maxfield to develop the analysis. Economic Development Authority Special Meeting Minutes September 21, 2004 Page 4 of 5 Nawrocla' asked who is Maxfield Research and did they have any comments as to the location for the facility. Streetar stated they are the firm that did the Mady's study, Columbia Heights Housing Study, Anoka County Housing Study, he has used the firm when he was in Minnetonka and Oakdale and that MaxfieM stated they felt the NEI site was a better site and easier to access than Huset Park. ~ Resident, Sue Genosky, stated she is spearheading getting a Recreation Center in Columbia Heights, stressed the need for gyms, whether or not the Crock Recreation Center is built or not, the study will be very important in the determination, and provided the board with a copy of the minutes from the Booster Club minutes stating they will provide $2, O00 for the analysis. Williams stated after going to the School Board meeting he felt they weren't interested in the project. Ericson stated she also attended the meeting and understood the people there night weren't willing to pay for the facility and that she hopes a study like this would help determine who would use the center. Resident, Aurora Johnston, stated the analysis will not be biased and would tell us what we really need to know. Motion by Ericson, seconded by Wyckoff, to Approve the Contract with Maxfield Research, Inc. to perform a Demand Analysis for a Community and Recreational Center in Columbia Heights; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. ADMINISTRATIVE REPORTS Apache Medical Buildin~ Streetar stated the owners of the Apache Medical Building are interested in building a facility in Columbia Heights and has set up a meeting to discuss this with them. 4232 Madison Street Streetar stated this is the Lonsky property, which the Planning and Zoning Commission denied a lot split at their meeting this month. The property is basically not buildable. Staff contacted GMHC, which determined they could tear down the home and sell it for $240,000, but there wouM be a gap between it of $60, 000. GMHC will contact MHFA for possible assistance. Streetar 'stated the home just South of it could possibly be purchased and the lots combined for redevelopment. Nawrocki asked what the address of the other home to the south was. Streetar stated he wasn't sure, but Bakken would call him with the correct address tomorrow. Wyckoff, Jindra and Williams also ask for the property address. Hilltop Streetar stated Fehst, Wyckoff and himself attended a Hilltop City Council Meeting were they stated they have applied and received a grant for $25,000 to redevelop the 47th to 49th block of CentraI Avenue. .. Economic Development Authority Special Meeting Minutes September 21, 2004 Page 5 of 5 City Planner Streetar stated the City has received a number of applications for the position and may upgrade the position to do some of the things with redevelopment that he and $chumacher currently do. He will be coming before City Council to discuss hiring a full time planner that could do this type of work. Next week there will be a planner coming in three days a week to assist the department. Buildin~ Official Streetar stated we have only received two applications for the position, which neither one are qualified for our needs. With all of the new developments coming up in Columbia Heights staff has been talking to other cities about the possibility of combining services. MGS Buildin~ $chumacher stated there is an illegal use church in the MG$ building that has also put up two illegal signs. The City Planner will be sending out a certified letter to the owners of the property in this regard. Walker ElderCare Streetar stated he met with Denny 0 'Donnell fkom Walker ElderCare this week, as they are interested in putting a senior wellness center on part of the NE[ site. Staff will continue discussions and inform the board as ideas develop. Nawrocki stated the resident at 1141 Cheery Lane contacted him with concerns that his property is falling down into the Kmart property and asked who he should contact. Streetar stated Jim Mollenaro is the City contact, has talked to Kevin Hansen on this matter already and public works will be addressing the issue with our engineers. Nawrocki stated: 1) he received a call from a Parkview Villa resident concerned that the air conditioning was turned off, which effected her asthma; and 2) heard that the phone was taken out of the elevator and residents are getting trapped ir~ there until someone hears them pounding on the doors. Streetar stated Welke was contacted by staff about the air conditioning problem of which she stated it was turned down but as soon as she came it, she turned it up and with the elevator phone issue, staff will contact Welke to have this corrected. The board directed staff to contact Welke to install a phone that residents can call 911from for medical emergencies and an elevator'emergency number to dial for when they are stuck in the elevator. ADJOURNMENT President, Murzyn, Jr., adjourned the meeting at 9:15 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H:~EDAminutes2004\~)-2 t-2004