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HomeMy WebLinkAboutEDA MIN 11-16-04ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES NOVEMBER 16, 2004 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 7:05 p.m. Present: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE CONSENT AGENDA Approval of Minutes Move to adopt the minutes of July 29th, September 15, Septembei- 21, September 37 and October 25, 2004, meetings as presented in writing. Financial Report and Payment of Bills Move to approve Resolution 2004-14, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for September and October 2004 and approving payment of bills for September and October, 2004. Motion by Williams, second by Wyckoff, to adopt the consent agenda items as listed. All ayes. Motion Carried. Nawrocki asked why there is a negative $19,000 under Community Development Administration, Personal Services account #201-46310. Streetar stated as a result of Walker taking over management of Parkview Villa in February, City staff time is billed to Walker on a quarterly basis. ITEMS FOR CONSIDERATION Resolution 2004-15 and 2004-16~ 2005 Budget and Levv Streetar provided the board with a powerpoint presentation, which was also provided to the Council at an early budget worksession. Motion by Wyckoff, second by Ericson, to Adopt Resolution 2004-15, being a Resolution of the Columbia Heights EDA Adopting the 2005 Budget of $223,790 and a Levy of $62,424 and recommending this Budget and Levy to the City Council for approval. All ayes. Motion Carried. Motion by Wyckoff, second by Ericson, to Adopt Resolution 2004-16, being a Resolution of the Columbia Heights EDA approving and Levying $161,366, subject to approval by the City Council. All ayes. Motion Carried. Economic Development Authority Meeting Minutes November 16, 2004 Page 2 of 5 Resolution 2004-17 A rovin the Consultin Services A reement with the Greater Metro olitan Housin Cot oration GMHC which includes services from the Housin Resource Center and the Rehab Incentive Pro ram for 2005 Streetar stated Jennifer Bergman from the Greater Metropolitan Housing Corporation is here tonight to answer any questions the 'board may have. The resolution before you approves, continuing services to Columbia Heights residents through the Greater Metropolitan Housing Corporations Housing Resource Center and the Rehab Incentive Program,for 2005. Bergman stated GMHC has applied to MHFA on behalf of the City of Columbia Heights for a grant in the amount of $50, 000 to provide assistance to 25 homeowners this year with $395,000 of home improvements, through the Rehab Incentive Account program. They applied for a grant from Met Council to demolish and build new homes in Columbia Heights of which 8 homes have currently been finished and sold. They are also a lender, providing services to residents like MI-IFA Fix Up Fund loans (11 in 2004), construction consultations calls, inspections and scopes of work, homebuyer information, mortgage foreclosure prevention assistance, and home improvement information. She passed out copies of their Annual Report and flyers that are available to residents of Columbia Heights in the marquee outside of the Community Development Department or, ce. They have a $1.8 million dollar Annual Budget, 60% is fees obtained from cities and 40% of the 'overall budget is from fundraisers by local businesses. Wyckoff stated she needed some things done to her home this year and called the Resource Center about the Rehab Incentive Funds which were already gone by June, why is this? Bergman stated the program was extremely successful not only in Columbia Heights, but in other cities like Crystal where they provide the same program. ~ith Crystal they put in an additional $80,000 to promote the program. Streetar stated this is great for redevelopment of the city and can also be used as leverage for obtaining grants. Y*qlliams asked how much money Bergman thought she could use. Bergman stated $300,000 easily could be used. Murzyn aske~ Streetar if they approve $35,000 tonight, could they come back at a later date to raise the amount. Streetar stated yes. Motion by Ericson, second by Jindra, to Adopt Resolution 2004-17, Approving the Consulting Services Agreement with the Greater Metropolitan Housing Corporation (GMHC), which includes funding the Housing Resource Center and the Rehab Incentive Program for 2005; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Williams-Peterson Real Estate Aereement for 40th & Universi~ Redevelopment Murzyn stated Y~'ilHams is excused from this discussion, as he is a partner. Schumacher stated based on the letter dated October 12, 2004from the City's attorney, Steve Bubul he is recommending termination of the agreement with Williams-Peterson as F/illiams is an EDA commissioner and holds a significant interest in the development. Nawrocki asked where it says in Bubul's letter that we have to terminate the agreement and asked if Pet~rson was made aware of this. Ericson stated Bubul's letter is basically stating this body could choose to stay in the agreement but would have to go to the Attorney General for his Economic Development Authority Meeting Minutes November 16, 2004 Page 3 of 5 opinion, which could take some time, as you first have to present it to him and ask for the appointment to review the agreement. Peterson stated he has talked to Schumacher about this letter as Mr. F/illiams received a copy of the letter and lost it, would like to see this project stay alive as he has heard from Channel 6 that they want to go forth with the lease, and would like to go ahead with an agreement, but without F/illiams being a partner. Ericson stated Peterson would have to come up with a development agreement by next month and we could still get into the same situation when he becomes Mayor in January. Peterson stated that is something staff could check out with Bubul. Fehst stated Peterson is still a resident until the'time he is sworn in as Mayor. Murzyn stated City Council should look into putting more residents on the EDA, as there are residents interested in the positions. Motion by Murzyn, second by Ericson, recommending City Council look into more residents on the EDA instead of so many City Council members. Upon Vote: Jindra- aye, Nawrocki- nay, Ericson- aye, Kelzenberg- aye, Murzyn- aye, Williams- aye, Wyckoff- aye. Motion Carried. Murzyn stated: 0 we should terminate the agreement with l~illiams-Peterson; and 2) Peterson should put together a development agreement as soon as possible for the EDA meeting next month. Ericson agreed and wanted staff to talk to Bubul about the implications of Mr. Peterson's agreement. Wyckoff stated Haugland presented the board with a complete book with drawings and pictures of other developments that they have built, like the one we are looking to developed on the site and stated she didn 't feel Peterson had that kind of information to provide to the board, it would be more beneficial to the City if he would go to other Cities and build the kind of development that we want to get some experience and then come back to the board with a project. For this reason she will be voting against the motion to approve a Development Agreement next month. Motion by Wyekoff, second by Ericson, to terminate the Agreement between the Columbia Heights Economic Development Authority and Williams-Peterson Real Estate for redevelopment of 40th & University. Upon Vote- Williams abstained, Jindra- aye, Nawrocki- nay, Ericson- aye, Kelzenberg- aye, Murzyn- aye, Wyckoff- aye. Motion Carried. Ericson stated she doesn't think terminating the agreement stops the board from moving ahead with a development agreement and felt they should go forth with the project. Kelzenberg stated he did not feel the attorney is correct and doesn't see a problem with Williams being involved with the project. Murzyn stated he could not see any problems with the agreement going forth after eliminating Williams from the agreement. Economic Development Authority Meeting Minutes November 16, 2004 Page 4 of 5 Nawrocki stated that maybe they should enter into a pre-development agreement with Mr. Peterson. Streetar stated he didn't feel that another pre-development agreement was necessary if the board feels comfortable with Mr. Peterson providing a Development Agreement to the board by next month. Mr. Peterson will have to pay the City's cost of preparing the agreement. Peterson stated he understood. Motion by Kelzenberg, second by Ericson, to direct staffto work with Mr. Peterson on a development agreement for the property located at 40t~ & University and to direct staff to consult Bubul on this agreement by the December EDA meeting. Upon Vote- Williams-abstained, Jindra- aye, Nawrocki- aye, Ericson- aye, Kelzenberg- aye, Murzyn- aye, Wyckoff- nay. Motion Carried. Chan~e in Funding for the Purchase of 322 40th Avenm: -- Schumacher stated at the last EDA meeting discussing the purchase of 322 40th AVenue, the Quick Take was passed, then within a week the owner signed a purchase agreement. The owner of the MGS building wanted an additional $25,000, which the developer, Williams-Peterson agreed to pay. Now that the board has approved terminating the agreement with Williams- Peterson, staff is recommending the additional $25,000 in funding to come from account 420. Motion by Kelzenberg, second by Jindra, to Approve the Purchase Agreement for the property located at 322 40th Avenue NEin the amount of $225,000, with $159,961.26 in CDBG funds and $65,038.74 from fund 420, to be reimbursed when a future development agreement for the project area is established. All ayes. Motion Carried. ADMINISTRATIVE REPORTS 322 40th Avenue Streetar stated Alvin Whittfield, will be coming to the City Council meeting on Monday to speak as he has rented out the MGS building, at 322 40th Avenue, the property we are buying. He has put up an illegal sign (without a permiO, and opened a Tabernacle Church in the building, which is non-conforming to that site per our zoning ordinance. Staff has sent him a couple of letters, met with him, and at one point refused to let the Fire Department in. After the Fire Department was able to inspect the building, they too sent him a letter stating issues. He is now stating the City owes him a lot of money for all of the building repairs he did to the unit, of which he did not pull any perm its for. .Ci ,ty Planner Position Streetar stated the part time City Planner is working on down zoning the ordinance for duplexes in the City, which will take some time to compile all of the information. Fehst stated in Robbinsdale they studied the rental of double bungalows in the City, compared the numbers to other cities surrounding them and determined they had cause to change the zoning ordinance to limit the amount and location in the City of the units. Streetar also stated staff is working with Human Resources to develop an upgraded City Planner position that would cover not only all of the planning issues but the position would take over on redevelopm~nt projects and grants when Schumacher retires next year. Economic Development Authority Meeting Minutes November 16, 2004 Page 5 of 5 Establish December 14~ 2004~ 7:00 pm for a Special HRA and Regular EDA meetinl, Streetar stated the City Council meetings in December are scheduled for the 13t~ and 22~, with the possibility of the 22nd being cancelled as in past years. StaJ~is requesting a Special HtL4 meeting for approval of the 2005 Budget and moving the EDA regular meeting up to meet on the same night possibly December 14th,~ 15tn, or 16tn. After some discussion, Murzyn stated the consensus of the board is to have the EDA meeting Thursday, December 16th at 7.'OO pm and the HRA Special Budget Meeting to follow at Parkview Villa, unless there is some conflict with the room, and therefore the meeting will be held at City Hall. ADJOURNMENT Motion by Nawrocki, second by Williams, to adjourn the meeting at 9:28pm. All ayes. Motion Carried. Respectfully submitted, Cheryl Bakken Community Development Secretary H:~EDAminutes2004~qovember 16, 2004