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HomeMy WebLinkAboutEDA MIN 01-25-05 ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES JANUARY 25, 2005 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 9:23 p.m. Present: Don Murzyn Jr., Gary L Peterson, Bobby Williams, Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg Patricia Jindra Absent: PLEDGE OF ALLEGIANCE OATH OF OFFICE Walter F ehst administered the Oath of Office to Gary 1. Peterson, Bobby Williams "and Bruce Nawrocki. ELECTION OF OFFICERS Motion by Ericson, second by Kelzenberg, to reinstate the current officers; Don Murzyn, Jr. for President; Pat Jindra for Vice President; and Bruce Kelzenberg for Secretary/Treasurer. All ayes. Motion Carried. CONSENT AGENDA Approval of Minutes Financial Report and Payment of Bills Motion by Ericson, second by Kelzenberg, to Adopt the consent agenda items as listed. All ayes. Motion Carried. *Ericson stated items 5B & 5C staff would like to table due to the addition of5E. ITEMS FOR CONSIDERATION Resolution 2005-02. Amend and Restate the Bvlaws Streetar stated the City Council made a motion at their January 10th meeting to change the City Council work sessions to the first Monday and the third Tuesday of each month. They also moved the EDA and HRA meetings to the fourth Tuesday of each month. Therefore, the EDA Bylaws need to be amended at this time and stated there is a conflict with the February meeting. which he asked Cher Bakken to explain. Bakken stated in the months of February, March and November the first day of the month starts on a Tuesday. For example, in February the fourth Tuesday would be February 22nd. The City Council work session would be held one week apart, on the 7th and 15th, with the 15th falling the night after a City Council meeting. The consensus of the board was to move the EDA meeting in the month of February to the 3rd Tuesday, February 15th and the worksession to be held on the 22nd. Economic Development Authority Meeting Minutes January 25, 2005 Page 2 of5 Motion by Ericson, second by Peterson, to Adopt Resolution 2005-02, a Resolution to amend and Restate the Bylaws of the Columbia Heights Economic Development Authority. All ayes. Motion Carried. Resolution 2005-03. Condemnation of Certain Propertv for Redevelopment Item Tabled per the addition of 5E. Resolution 2005-04. Condemnation of Certain Propertv for Redevelopment Item Tabled per the addition of 5E. Redevelopment Plan for Presentation Streetar stated the block on the west side of Central Avenue includes, from south to north, the Taco Bell, Carwash, Udupi Restaurant, Barbershop, Exotic Pet Store and LaCaberna Bar and Grill. The Welsh Company is representing the owner of the now vacant, Exotic Pet store to redevelop the corner. The owners of the Barbershop and LaCaberna have indicated their desire to sell. Welsh stated a redevelopment would most likely be a three tenant commercial service, retail building. Welsh asked the City if we are interested in supporting the redevelopment of this corner with financial assistance. This is a good opportunity to improve the look of Central Avenue, as well as preserve the 55 million dollars ofinvestment in housing on the Kmart site. Staff is looking for board approval to direct staff to work with Welsh to prepare a redevelopment plan for presentation at a future meeting. Streetar stated the developer has talked about a strip mall. possible city liquor store, etc. Murzyn stated it is a great opportunity for the City and would like to hear more from the developer. Williams stated he would like to see what the developer's ideas are. Nawrocki stated the City bought the homes on 3 rh & Central, Burger King, MGS, and the NEI buildingfor redevelopment, but the EDA has no money. Somewhere we need to set some priorities for purchasing property and felt the developer would want a few million dollars from the City to redevelop this area. Murzyn asked would they be asking for some TIF funding if they aren't buying the property. Fehst stated wefund projects under the Pay as You Go TIF financing system, so if they don't generate tax, they don't receive any funds and stated when we have someone that is interested in buying and developing the site, we shouldn't pass it up. Ericson stated maybe we could send the message to Welsh that we have some mixed feelings and would like to see some plans and ideas for the site. Murzyn requested Streetar to bring the boards comments to Welsh and present the information at the February 15th meeting. Streetar stated staff could arrange this. Economic Development Authority Meeting Minutes January 25, 2005 Page 3 of5 Resolution 2005-05. Scheduline a Public Hearine on the use of Eminent Domain Schumacher stated this Resolution will authorize a Public Hearing to be held on February 15th EDA meeting on the use of Eminent Domain Proceedings to acquire property for redevelopment pursuant to the Downtown CBD Redevelopment project in the Industrial Park Redevelopment Area. Motion by Williams, second by Ericson, to Adopt Resolution 2005-05, a Resolution Scheduling a Public Hearing on use of Eminent Domain Proceedings to acquire property for redevelopment pursuant to the Downtown CBD Redevelopment Project. All ayes. Motion Carried. ADMINISTRATIVE REPORTS Industrial Park Redevelooment Schumacher stated the City's application for the Contamination Clean-up Grant in Phase II of the Columbia Heights Industrial Park was approved for funding. Of the twenty-eight applications submitted, Columbia Heights ranked number two with the State and number six with the Metropolitan Council. With this it brings the total grant dollars received on this project from the Metropolitan Council and the State of Minnesota in the last two years to over $2,205,000. These dollars will be earmarkedfor removal and clean up of the oldfoundry and related out buildings at 3800 5th Street. Demolition of the buildings in Phase I are proceeding well, with the old Rayco building at 3801 5th Street completely removed, asbestos abatement will be completed by the end of January in the Honeywell building and demolition will commence the first week of February. Staffhas been working closely with the developer and MN Dot to develop plans and specifications for the parkway system. Preliminary drawings will be available for review within the next 30 days. Kmart Streetar stated the first of three loft condominium buildings are almost fully framed, the developer indicated that 16 of67 units are sold, with sales between 192,000 and 335,000, the developer and the City's financial consultant, Mark Ruff from Ehlers, met to discuss financing for the second phase that includes the hotel on the current Saver's site. The developer indicated that in order for the hotel to be financially feasible at least five million dollars in public financing would be required, which would include free land with a value of 1. 5 million, a 200 plus stall parking deck at 2 million, and cash of 1.5 million. In addition, the City would be requested to bond for the 5 million. The owner of the Savers site will only sell for 4.3 million dollars, an amount significantly more than the property is worth. The developer would like to investigate the possibility of building the hotel south of 47h Avenue, the area that includes BW3, Welle Auto and the small strip mall. Streetar stated the possibility of a hotel on the savers site, has died as they needfree land, 1.5 million in cash, 200 plus stalls of parking and 4.3 million dollars. which Nedegaard has said no to. He told Nedegaard he would bring to the EDA the possibility of the hotel located south of 47h Avenue. Nawrocki stated if they don't develop the savers site, won't that screw up the access to Grand Central Lofts from 49'h. Streetar stated Nedegaard believes he can buy enough property from Econonuc Development Authority Meeting Minutes January 25, 2005 Page 4 of5 the owners of the savers site to get the road access. Nedegaard has worked with the City in good faith for the past year to satisfy our needs and he may come to the city for help in obtaining the property for the access or through eminent domain acquire the property. Nedegaard would pay the condemnation amount. l\'[r. Steak Streetar stated Mr. Steak's owner would like to sell his building and get out of the restaurant business. as the restaurant's concept is worn and the clientele are mostly retired residents. He has been working with Mary and Mickey Rooney, the Real Estate Brokers who are listing the property. At this time he is willing to sell to the City for $600,000. Mr. Steak's owner stated if he didn't sell to the City the property would probably be sold for fast food. The EDA may want to purchase the property, demolish the building and remarket the property for redevelopment purposes. Mr. Rooney stated Mr. Steak has been a great asset to Columbia Heights over the years, there was an appraisal of$750, 000, then dropped to $650,000 and would sell itfor $600,000 to the City. Mary Rooney thanked the City for the opportunity to present this offer and Mr. Streetar for all his help. Mr. Wolf had an appraisal on his property and with the cold weather he is loosing business and would like to ask the City for help. Streetar stated he has been contacting various companies to see if there is any interest in the property, including Boarder Foods, which was considering redeveloping their Taco Bell restaurant on the corner of 49'h and Central. Mickey Rooney stated he talked to the owners of the Northeast Bank about their interest in the site, but they still are under a lease. Williams stated, he would be in favor of Boarder Foods purchasing and developing the site or possibly the site would be large enough for a new liquor store. Fehst stated it was too shallow, which would not allow enough parking spots. Murzyn stated this is a good opportunity for the City and directed staff to continue working on this. 39th & 37th and Central Streetar stated at the October 2003 EDA meeting $5,700 was authorized by the board directing staff to work with DSU on a scope of work for the 3~ & Stinson redevelopment site. Planning beginsfor the area along Central Avenue between 37h and 4dh Avenue. The area is ripe for reuse and redevelopment. In the last few years the City has acquired and/or demolished two single-family homes, and two commercial buildings. In addition, the City has improved Central Avenue to include the road, sidewalk, streetscaping and traffic safety. Currently there is a small run down office building, five non-conforming single-family homes, including Michael Anthony's Salon who has indicated they are willing to sell to the City. Staff has been working with DSU and would like to begin a 90 to 120 process to plan for the redevelopment of this area. DSU's cost for services would be paid for using Metropolitan Council grant funds, the City received over two years ago. The outcome would be a 5-7 year road map ofwhat the City wants to accomplish along this stretch of Central Avenue. Streetar stated we need a plan for the City, Economic Development Authority Meeting Minutes January 25, 2005 Page 5 of 5 what are we going to do once the business develops the site. He talked to Hoisington Koegler, which is backlogged. Staff recommends DSU as they are working on many of the same type of plans in the downtown area and have time. They are asking for $20,000 for the plan. Aldi's is interested in the property on the corner of 37th and Central. Streetar stated ifwefind contamination on the site, we would have Aldi's do the Contamination Clean up. Fehst stated we could get into an agreement walz Aldi 's where they pay for so much of the clean up and we pay for anything go over that amOt"". Motion by Ericson, second by Kelzenberg, to direct staff to enter into an agreement with DSU in the amount of$20,000 for the development of3ih to 40th on Central. All ayes. Motion Carried. ADJOURNMENT President, Murzyn, Jr., adjourned the meeting at 10:48 p.m. Respectfully submitted, Ch~~ Community Development Secretary H:\EDAminutes2005\1-25-2005