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HomeMy WebLinkAboutEDA MIN 09-27-04 SpecialECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES Monday, September 27, 2004 CALL TO ORDER/ROLL CALL President, Mm-zyn Called the meeting to order at 7:04 p.m. Present: Don Mm'zyn Jr., PaWicia Jindra, lulienne Wyckoff, Bobby Williams and Bruce Nawrocld, Tammera Ericson, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE ITEMS FOR CONSIDERATION Schumacher requested Resolutions 2004-12 and 13 be tabled until next month as some' information was left out of the Tax Increment Financing Plan and stated he will be requesting the same at the City Council meeting along with the public hearing. Resolution 2004.13~ Modification to the Downtown Revitalization Plan for the CBD Redevelopment Proiect and Establishment of the Huset Park Area TIF Plan and Resolution 2004.12~ Eliminatine Parcels from K2 TIF Motion by Williams, seconded by Kelzenberg, to table items 3-A and 3-B until October. All ayes. Motion Carried. Resolution 2004-11~ Approving Contract for Private Redevelopment Schumacher stated this resolution is to approve a contract with Schafer Richardson for redevelopment of the Industrial Park. November lst the Phase II clean up grant application is due to the state, of which they won't approve until a redevelopment contract is in place. Steve Bubul, Kennedy & Graven, Chartered outlined some of the important parts of the Contract. There is approximately 28 acres to be developed, 80% of the project or approximately 450 units would have to be done before the developer would become eligible to receive TIF funds, the ED,4 will be reviewing the development plans prior to construction, the developer needs to acquire all of the properties by October 31st or will come to the City for help with condemnation, if the contract is approved 80% of the project costs would come from the developer and 20%from City funding, the EDA would approve every sub-developer when properties are sold off, the City's cost for the parkway is approximately $1.4 million, with $1.2 million funded from state aid and $1.677 million coming from the developer. The Tax Increment Financing is based on a Pay-as- you-go program, which is where the developer buys all the properties, develops the land and in this case will be asking the City to receive approximately $8 million in funding. Nawrocki stated: 0 he does not intend to support the project, as it shouM be in City Council hands not the EDA as the meetings don't get to residents; 2) he asked to have it stated in the agreement that all housing is to be owner-occupied and was tom the developer couM not agree to this at that point; 3) with cut backs in City funds, increased utility rates, and staff cuts, we shouM wait on this project. Murzyn, Jr. asked Nawrocki what he meant by the EDA not getting information out. Nawrocki stated that isn't what he meant. He meant the EDA meetings are not televised so residents don't Economic Development Authority Special Meeting Minutes September 27, 2004 Page 2 of 2 hear about what we are discussing until it goes to City Council. Schumacher stated these items are on both the EDA and City Council agendas and that the City Council is the governing body. Ericson stated if Nawrocki is concerned the EDA meetings aren't televised we could certainly start televising them, however we would have trouble with the four times a year our meetings are held following the HRA meetings at Parkview Villa. Wyckoff stated if we do that we should televise all EDA meetings, not just for this development project. Motion by Wyckoff, seconded by Ericson, to waive the reading of Resolution 2004-11, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Wyekoff, seconded by Ericson, to Adopt Resolution 2004-11, a Resolution Approving a Contract for Private Redevelopment between the Columbia Heights Economic Development Authority, the City of Columbia Heights and Schafer Richardson, Inc. or a related entity, and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. }Yyckoff asked for clarification of "or a related entity". Bubul stated this is limited liability and $chafer Richardson will be one of the owners. Brad $chafer stated he is the chief owner of $chafer Richardson Inc, a related entity and will be an actual partner in the entity. Nawrocki stated entities are used to transfer some of the liabilities of the project. Bubul stated this is true and that is why we have control over the TIF financing, were we can withhoM TIF funds to the developer if the project does not get built per your specifications. Motion by Nawrocld, seconded by Ericson, to adjourn the meeting at 7:50 p.m. All ayes. Motion Carried. Respectfully submitted, Cheryl Bakken Community Development Secretary H:\EDAminutes2004\September 27, 2004 Spec.