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HomeMy WebLinkAboutEDA MIN 07-29-04ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES JULY 29, 2004 CALL TO ORDER/ROLL CALL President Murzyn called the meeting to order at 5:34 p.m. Present: Don Murzyn Jr., PatHcia Jindra, Bobby Williams, Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg Staff: City Manager Walt Fehst and Assistant to th~ Community Development Director Randy'Schumacher Absent: Julienne Wyckoff ITEMS FOR CONSIDERATION -Further Discussion on NEI Site Fehst stated that Commissioners Nawrocki and Williams called this meeting to discuss if the Authority acted prematurely to approve the demolition of the NEI building. The bid was awarded on April 14, 2004 to F. M. Frattolone. The building has been gutted of asbestos, which has resulted in a lot of damage. The contractor is on site and ready to begin demolition. Fehst referred to touring the building yesterday with Mr. Williams and his architect. Fehst stated that the building was for sale, unsuccessfully, for one year for the price of $1,200,000. The City purchased it for $600,000. The only interest in the building was by non-profit groups. Dunbar Development proposed 50 apartment units on top of community space with 22 units of carriage homes in the back of the lot. Staff spoke to a dozen developers to see if they were interested in keeping the building. Six developers looked at the building and indicated that the real value was in the raw land. The EDA requested staff obtain CDBG funds to remove the building. Williams stated that he and Commissioner Nawrocki were against moving so fast on the demolition, and that the commission does not have a cbnsensus for what to do with'the site. He stated his wish to have started earlier to save the building. Architect Chuck Fryberg indicated that he probably could have found someone to purchase the building and put in a $20,000,000 project. The building will be difficult to remove, because it is so well built. However, there is now wat.er coming through the roof to the gym floor. Williams referred to the refurbishment of the Grainbelt Brewery, which took 20 years. Murzyn stated this is not an historical building. Williams stated that in the future if there are two descending votes on an issue, it should be discussed further. We need to be more of a team. Ericson stated this discussion began on the timing issue, setting aside the ultimate issue to tear down, which began late last year. The issue was discussed, we applied for a demolition grant, and approved demolition in April. Following this, there were no further issues to discuss, resulting in no EDA meetings during June and July. Now we have a signed contract. Ericson stated it bothers her to hear that we moved to quickly, and sees this as a last minute effort. In getting rid of the building, we can look at something else. She reiterated that we received funds for removal and that any interest shown for the site was for raw land. Ericson stated that Councilmembers toured the building, read the reports, and indicated that her decision was not made quickly. Economic Development Authority Meeting Minutes July 29, 2004 Page 2 of 4 Williams stated that he did not get input from citizens until after the vote was taken. We need to have a plan and better communication. Kelzenberg indicated that residents he spoke to say the building should be tom down. These residents may be young and may have a different vision for the future. They know we need space for our youth, fight in Columbia Heights. Kelzenberg referred to an E-mail from Tom Sherohman stating that we need to do this for the kids and offered his help. Kelzenberg stated that we need to think of the future, not just today. The school gyms are not open during the summer. He is also in favor of a pool. Williams indicated this was voted down five years ago and that was before we lost $2 million in State aid. Kelzenberg agreed that the time to do this was 25 years ago. He stated there were only 2,600 votes cast, two to one against their proposal. The kids need something to do and someplace to go. Williams stated that the NEI gyms were in good shape. Kelzenberg indicated they were substandard. Nawrocki stated that three months ago he voted against demolition because we did not have a plan. We should have hung onto the building to see if we could use it. Staff had indicated it was unfeasible to bring the building up to code. The document given in the packet was to justify the area as a TIF district to tear it down and redevelop the area. Nawrocki still feels strongly, but realizes at this point it is probably too late to save the building. The need for gym space is a concern. He referred to a call he received regarding papers, which indicate the old part of the building was built in the 1920's for $70,000. Those gyms could still have been used for recreation programs. The auditorium had 1,000 seats and a newer gym floor. Nawrocki stated that he has been convinced there is a need for gym space. With the loss of NEI we will have no gym space other than the schools for our programs. If something comes of the site at 37~ and University, it would be great, but there may be sites of higher priority. Nawrocki stated he has had discussions with our schools regarding a cooperative venture. Unfortunate, they will not be pursued in this fall's election. Sharing the cost with the school district, including Fridley residents that attend our schools, would have been the best solution. Murzyn stated that has not been ruled out. Nawrocki indicated it has been ruled out for the time being and that delays meeting the need. This last ditch effort to try and save .the building with two gym spaces is an honest concem to find some temporary space for the programs. He is saddened that we won't be able to keep the property until we are able to do something better. He referred to the cost to bring the building up to code. He indicated he is not hung up on the historical preservation, but on trying to save two gym spaces. Murzyn questioned what Dunwoody Institute paid in taxes. Fehst indicated they paid no taxes. Murzyn indicated that we should have bought it before they did. We have done nothing for years for our kids. Whatever is done will be to late for today. This property should be multi-use and the taxes would help with our loss of aid. We drastically need to change to a bedroom community and then our taxes would go down. The parks we have are minimal, poorly maintained and not being improved. Nawrocki debated these comments and gave the past history of our parks. Murzyn asked when the last park was obtained. Nawrocki stated it was when he got land donated from Burlington Northern. Murzyn stated that we may have more park space than most and suggested a skate park, as that is what kids today do. Ericson agreed wiih Chairperson Murzyn, that these are two different issues, and that the recreation program does not influence the decision on the NEI building. The money put into the Economic Development Authority Meeting Minutes Suly 29, 2004 Page 3 of 4 building for renovation, ADA, and maintenance would be a huge expense. Ericson spoke of the selling price of homes in Columbia Heights compared to other communities such as St. Louis Park, where the homes sell for more and residents are willing to pay for the amenities they want. The houses that sell here are sold to become rental property. We need to make our community a competitive place to live. Nawrocki stated that interest rates are going to rise. The boom is over. Kelzenberg stated that is another reason to do something now. Because of the current interest rates, now is the time to build a facility to meet our needs. An audience member questioned the legal ramification to back out of the signed contract and to the demolition grant money. Murzyn stated that we would be sued for'the contract amount. Nawrocki stated that we would not back out, but negotiate. The grant money would have to be given back, but could possibly be used for another project. Sue, a member of the recreation facility task force, stated that they have not rejected the NEI site. Our efforts have been diverted to the choice location as next to Murzyn hall. Gary Peterson indicated that at the building open house in June, people expressed concern to possibly save the building. Don't tear it down until you have a plan for the property. Peterson stated he did express concern six weeks ago at the council meeting and everyone was alerted. The necessary time was not taken to cover all the options. It is sad to see the shape the building is in now, as it would be unusable as a city facility. Those gyms could have been used from day one. Ericson stated that we could not just open'the doors without bringing the building up to code. Peterson stated there was not a health or safety hazard, just that the plumbing did not work because the outside line was broken. Peterson questioned plans for the site, considering the city is in a money dilemma. Fehst stated that the MN Design Group from the University is looking at site options for private and public development. Joe Sturdevant stated that we had two votes fOr a recreation center; one was in a presidential year. He did not agree with spending money indicated by a survey that only spoke to 300 of the 18,000 residents. If the building were kept for gym space, we would still need two more gyms and would not have the $900,000 spent on the renovation for a new facility. An audience member asked if this would go to the people for a vote? Murzyn indicated that Council would not need to put it on the ballot. Kelzenberg stated he is adamant that gym space be on the ballot this year. Murzyn stated that this discussion was not about gym space. Jindra stated that permits have been pulled and if we renege, we could be sued. Nawrocld suggested negotiating with them. Jindra stated that then we would be back to where we were before. Jindra stated that she liked the old building, but the reports show it is too costly to red and it is prime property. She stated she would like to see multi-use on the site. Peterson stated that if the building were demolished, the task force would like to see the sale funds directed toward a community center to take the burden off the taxpayer. There would be user fees. " " Economic Development Authority Meeting Minutes July 29, 2004 Page 4 of 4 An audience member questioned the student enrollment numbers. Kelzenberg stated there are more programs, and therefore more people to accommodate, i.e. volleyball, wrestling and girls sports. Murzyn referred to the school track being repaired, but the fence is locked on the weekend and residents can't use it. .. ADJOIIRNMENT Ericson moved to adjourn the meeting at 6:47 p.m. Second by Kelzenberg. Upon vote: All ayes. Motion carried. Deputy City Clerk/Council etary