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HomeMy WebLinkAboutEDA AGN 04-20-04CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: wwmci, coht.tbia-heights, mn. us EDA COMMISSIONERS Don Murzyn Jr. Patricia Jindra Bruce Kelzenberg Julienne Wyckoff Bruce Nawrocki Bobby Williams Tammera Ericson ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING TUESDAY, APRIL 20, 2004, IMMEDIATELY FOLLOWING THE HRA MEETING PARKVIEW VILLA, COMMUNITY ROOM A AGENDA 1. CALL TO ORDER/ROLL CALL 2. PLEDGE OF ALLEGIANCE. CONSENT AGENDA. (These items are considered to be routine by the EDA Board of Commissioners and will be enacted as part of the Consent Agenda by one motion.) MOTION: Move to approve the consent agenda items as listed below: 1) Approve EDA Meeting Minutes for March 16, 2004. MOTION: Move to approve the minutes of the March 16, 2004 regular EDA Meeting as presented. 2) Approve the Financial Report and Payment of Bills MOTION: Move to approve Resolution 2004-04, a Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statement and payment of bills for the month of March 2004. 4. ITEMS FOR CONSIDERATION A. City Center/Recreation Center Discussion- John Shardlow B. Approve Contract for Asbestos Abatement of NEI Building MOTION: Move to approve asbestos abatement contract with Southern MN Environmental for the NEI building at 825 41st Avenue in an mount not to exceed $48,615; pending review and approval by the City Attorney, and furthermore, to authorize the President and the Executive Director to enter into an agreement for the same. C. Approve Contract for Demolition of NEI Building MOTION: Move to approve the demolition contract with F.M. Frattolone for the NEI building at 825 41st Avenue, in an amount not to exceed $286,500 and pending review and approval by the City Attorney; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. D. Review 40th & University-Predevelopment Agreement THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER e Set Special Meeting to Discuss the Schafer Richardson Predevelopment Agreement MOTION: Move to set a Special Meeting of the EDA at ,8:00 pm on Tuesday, April 27, 2004 in the City Hall, Conference Room 1, to discuss thc Schafer-Richardson Predevelopmcnt Agreement for thc Industrial Park Project. ADMINISTRATIVE REPORTS ADJOURNMENT Walter R. Fehst, Executive Director H:\edaAgenda2004\4-20-2004 The EDA does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its accommodation will be provided to allow individuals with disabilities to participate in all EDA services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the EDA Secretary at 706-3669 to make arrangements (TDD 706-2806) for deaf or heating impaired CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E.. Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit 0111' Website at: www. ci. cohtmbia-heights, mn. us COMMUNITY DEVELOPMENT DEPARTMENT Mayor Julienne Wyckoff Councilmembers Bobby Williams Tammera Ericson Bruce Kelzenberg Bruce Nawrocki City Manager Walter R. Fehst Date: To: From: Re: April 16, 2004 Planning and Zoning Commission Tim Johnson, City Planner Joint EDA/City Council Meeting The City of Columbia Heights would like to invite the Planning Commission to attend a joint EDA/City Council meeting to be held Tuesday, April 20, 2004, at approximately 8:00 pm, at Parkview Villa. The discussion items will be focused on a future City Center Concept and related Public Facilities. Any questions please call me at (763) 706-3673. THE CITY Of COLUMBIA HEIGHTS DOES NOT DISCRIMINATe ON THE BASIS OF DISABILITY IN EMPLOYMENT or THE PROVISION OF SERVICES EQUAL OPPORtUNitY EMPLOYER ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES March 16, 2004 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 7:04 p.m. Present: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams, Tammera Ericson, and Bruce Kelzenberg Absent: Bruce Nawrocki PLEDGE OF ALLEGIANCE CONSENT AGENDA Approval of Minutes Financial Report and Payment of Bills MOTION by Jindra, second by Williams, to adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION Approve Contract for Asbestos Abatement of NEI Building Streetar stated staff sent out 13 bidding packets of which eight were received. The bids include: the removal of all friable asbestos, and the transite panels in room 417, but does not include the roofing-patching compound, which will be addressed before demolition as it requires drilling holes in the roof Anoka County has indicated we can reallocate CDBG grant funds from the sale of 4607 Tyler to pay for the abatement. Stacy Kvilvang from Ehlers and Associates assisted staff in the bidding process. Southern Environmental was the lowest bidder at $48,615 and Dennis Environmental was the highest at $198,700. Streetar stated the asbestos removal takes 4 to 6 weeks. Ericson asked if the asbestos removal and demolition go hand in hand or does it make sense to do the asbestos abatement regardless what is determined about the removal of the building or should we have the discussion on the building removal before we make a final decision on the asbestos removal. Streetar stated he felt it made sense to talk about the demolition first. Williams stated he attended a walk through last week with Bruce Nedegaard, Gary Peterson and staff and felt the building shouldn't be torn down. Streetar read a letter from Bruce Nedegaard stating after touring and trying various layouts for the building, he determined the building should be demolished, recommended the City Council, the EDA and Planning and Zoning Commission show strong commitment to the residents that they are behind building a Community Center, encouraged getting residents involved in the planning process, and was hopeful the City could get a new City Hall, Library, and Community Center over the next few years. Wyckoff stated she would like to table the demolition and asbestos removal until next month, so we can explore every option for the site and asked if the demolition bid includes saving the pillars, banister's, etc. in the building. Streetar stated the bid did include the structural items being saved. Economic Development Authority Meeting Minutes March 16, 2004 Page 2 of 5 Streetar stated there are three questions the board needs to ask: 1) is the building salvageable as developers, architects and the report from the building engineer felt it wash 't,' 2) is the end product going to be something that people will be willing to pay to use it versus the facilities in Fridley and St. Anthony; and 3) what are we going to use the building for. Williams stated he would like to see something determined by next month as to what the building site should be used for. Murzyn,Jr. stated, we need to take control of the gyms, whether it's with the school board or the City. A Library and City Hall wouM be great combining a City Center with a gym. The City Council should get behind this project. Whatever the City builds it should be nice, something to remember our City by, and would be acceptable to new families coming into our community. Streetar stated he knows someone that works for Kraus Anderson who is willing to work with a group of residents, on the Community Center project without necessarily getting the job and may volunteer his services. Peterson stated he would talk to Streetar after the meeting. Peterson asked if the board tabled the demolition, what does that do to the bids and stated there is a total of $4, 000 in the Community Center fund from fundraisers. Streetar stated staff has talked to the low bidders for the asbestos abatement and demolition, which agreed to extent their bid for a period of 30 days. Also, Anoka County contacted him today to say that because the building is over 50years old and if we want to use community development block grant funds we need to have a historical review completed to determine if it is eligible for a historical designation. If it not eligible, we send the report to the county and if it is eligible, we need to hoM a public hearing for the public to determine if there is a viable use, which takes approximately 4 to 6 weeks. Wyckoff asked Fehst if the EDA could get G.O. Bonds for this project without raising taxes. Fehst stated we could and felt it would be reasonable for the City to finance a portion of the total with G.O. Bonds and tax residents approximately $50. O0 a year. Motion by Wyckoff, second by Williams, to table both the asbestos abatement and demolition items until the April 20th EDA meeting. All ayes. Motion Carried. Motion by Murzyn, second by Ericson, to strongly encourage City Council to consider the NEI building for a City Center, which would include City Hall offices, a Library and a Community Center. All ayes. Motion Carried. Approve Contract for Demolition of NEI Building,- Tabled until April meeting. (See above motion) ADMINISTRATIVE REPORTS Industrial Park Redevelopment Update Schumacher stated at the City Council's March 8tn meeting, contracts were approved for the engineering feasibility and contamination clean up. From the reports, the City Council will receive detailed information addressing sewer, water, roads, and surface water management Economic Development Authority Meeting Minutes March 16, 2004 Page 3 of 5 needs related to the redevelopment project. Specifications will be drafted for future bidding of soil and water clean up, building demolition and asbestos abatement. A Predevelopment Agreement outlining the responsibilities of the City versus, Schafer Richardson, the developer will be prepared and presented to the EDA in April. Staff is working with the owners of Buckles and Buckles and Kramer Davis on purchasing their property, SEH is doing the feasibility study and reviewing the preliminary site plan, provided by $chafer Richardson. 40th & University Schumacher stated he is still working with the owner of MGS to purchase the property. They have purchased a site on 36th & Central and has put up a sign to rent out the current building. Haugland Companies tried to market the corner with no results. Streetar stated Anoka County Is encouraging the City to allocate the CDBG funds before May 1st, 2004. Resident, Gary Peterson stated he and Williams are interested in a joint venture to develop the site into a Town Square building with two stories, similar to the town square located at Hwy 55 and Winnetka, approximately a $1.4 million dollar project, 14,000 sq. fi. building, and with an agreement for marketing the site for a period of 120 days. Peterson passed around a rough draft of a design concept to give the board an idea of what they are proposing to build on the site. The second idea was to have two residential townhomes above the town square, which would mean the property would have to be rezoned. Wyckoff stated she did not want to see housing on that corner, but some type of coffee shop, bagel shop, etc. Streetar stated he felt housing wouldn't work at the site and that the board should really look at what they think would work there l O years from now. Murzyn suggested Peterson make up a formal proposal and present to the EDA. 4855 University Avenue Schumacher stated the City bought the property and was working with the owner of Collins Autobody to purchase the property and expand his business. The board counter offered the sale price to the owner of which he has recently backed out of his interest in buying the site. Staff is currently work with Kevin Hansen, Public Works Director to combine the demolition of the home with others that his department is going to be tearing down. Murzyn, Jr. directed staff to go ahead with the demolition of the building process. Kmart Streetar stated Bruce Nedegaard is preparing a redevelopment concept plan that includes the Savers building, Buffalo Wild Wings, Welle Auto and Subway commercial buildings. Nedegaard is also working with Aldi's Foods to develop the corner of 47th and Central where Arby's Restaurant is currently located. The grocery store carries name brand products with their label, where the average family of four can save up to $40. OO per week. Aldi's staff also stated his contact from Chili's Restaurant is interested in building on that block. It is expected the new concept will be brought to the EDA for review and feedback in April. Staff is working with Kevin Hansen to improve the look of the walk bridge that crosses over 49th and Central. Economic Development Authority Meeting Minutes March 16, 2004 Page 4 of 5 37th & Stinson Streetar stated Lenn Pratt, a developer met with staff regarding his interest in the 3 7tn & Stinson site with upscale housing ranging from $300,000 and up, overlooking the lake. Fehst stated he told Pratt the City wants something as nice as St. Anthony is putting up in their redevelopment project. 39th & Central Streetar stated Burger King, which is owned by Nath Companies of Bloomington has indicated they are aware of the City's intent to redevelop the area and are interested in selling. White Rental will be moving into their new facility by February 1st, 2006. The Heights Theatre owner has stated he wants to add an addition theatre to his building, and will only wait for the City for five years to determine what they are going to develop on the block. Murzyn, Jr. directed staff to start the appraisals, TIF inspections and ground work, on the Burger King and White Rental, and other properties and bring back to the EDA. Hilltop Meetine Streetar stated he and John Shardlow of DSU have been invited to attend the Hilltop City Council meeting on April 5tn to give an overview of all the proposed redevelopment sites in Columbia Heights. CVS Pharmacy Streetar stated the City of Minneapolis has confirmed that a new CVS Pharmacy will be going in on the corner of 37tn and Central where the Hi-Low Motel is located. Truth in Housine Streetar stated he has been working with Fehst checking into how other cities administer their Truth in Housing program. The cities of Crystal, New Hope, Minneapolis, St. Paul, Richfield and St. Louis Park all have Truth in Housing in place. This program helps to preserve the Housing stock. Staff would like to bring this program to the City Council for adoption. Fehst stated, he has been contacted by many realtors stating young families are buying homes only to find out they can't afford the repairs that are needed. Murzyn, Jr. directed staff to obtain more information on Truth in Housing and bring it back to the EDA, which could possibly recommend to City Council for adoption. 3912~ 3924 and 3928 Central Avenue Streetar stated Marcia White at 3912 Central contacted staff stating her house is for sale for $179, 900, which is non-conforming, with a little over 5, 000 sq. fi. Nancy Ebner, the property owner of 3924 and 3928 Central, heard the City has plans for redevelopment along Central Avenue, stated she is ready to retire and is interested in selling her home to the City. This may be the opportunity to buy these properties and redevelop the sites to something that better fits our needs along Central. Murzyn, Jr. directed staff to obtain appraisal, TIF inspections and bring this item back to the EDA. Economic Development Authority Meeting Minutes March 16, 2004 Page 5 of 5 Columbia Heights Hotel Streetar stated Susan Meltier, the owner of the Columbia Heights Hotel contacted staff asking if the City would be interested in purchasing the hotel, wants $250,000 and that she owes $40,000 in back taxes to Anoka County. Murzyn stated this isn't an area of consideration at this time, possibly in the future. Staff will keep the board informed about any further discussions. Dental Office on Universi ,t3, Wyckoff asked if staff has heard what the dentist at 5207University is going to do with the old building. Streetar stated he hasn't heard anything, other than some discussion to build a new Liquor Store on the site from City staff 2005 BUDGET Streetar stated it is time to start preparing the 2005 Budget and asked the board members to starting thinking about it and advise him of any ideas or questions they may have. ADJOURNMENT President, Murzyn, Jr., adjourned the meeting at 8:45 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H:~EDAminutes2004~vlarch 16, 2004 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: April 20, 2004 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Robert Streetar BY: DATE: April 12, 2004 BACKGROUND: The bound Financial Report for the month of March 2004 draft Resolution 2004-04 is attached for review. The enclosed Financial Report lists the Summary (white), the Check History (Green), the Expenditure Guideline with Detail (blue) and Revenue Guideline with detail (yellow) for each fired and department. The reports cover the activity in the calendar (fiscal) year from January 1 through March 31, 2004. RECOMMENDATION: Staffwill be available to answer specific questions. If the report is satisfactorily complete, we recommend the Board take affirmative action to receive the Financial Report and approve the payment of bills. RECOMMENDED MOTION: Move to approve Resolution 2004-04, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement and Payment of Bills for the month of March 2004. EDA ACTION: EDAConsent2004 \March2004 Financial EDA RESOLUTION 2004-04 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR MARCH 2004 AND PAYMENT OF BILLS FOR THE MONTH OF MARCH 2004. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the month of March 2004 and the list of bills for the month of March 2004 are attached hereto and made a part of this resolution; and WHEREAS, the EDA has examined the financial statement and the list of bills and finds them to be acceptable as to both form and accuracy. NOW,THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the attached financial statements and list of bills, which are attached hereto and made a part hereof, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the list of bills as presented in writing are approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution and attachments are to be made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this __. day of ,2004. MOTION BY: SECONDED BY: AYES: NAYS: President- Don Murzyn, Jr. Attest by: Cheryl Bakken, Assistant Secretary H:LResolutions2004~EDA2004-04 TO: EDA Commissioners FROM: Robert Streetar, Director DATE: 15 April 2004 SUBJ' City Goals At the April 20, 2004 EDA meeting, the City Council, EDA and Planning Commission, will discuss the need for a city center, and a recreational facility. John Shardlow, will facilitate the discussion. Please find attached a memo and six questions to assist in preparing for the discussion. Please answer the questions before the meeting. If you have questions, please contact me at 763-706-3672. Memo INCOIPOIATBD Columbia Heights City Council, EDA, To: Planning Commission, Staff Date: April 15, 2004 Preparation for the April 20~ Economic Development Authority Meeting, Discussion Regarding a Community Recreation Facility and City Center INTRODUCTION: For a long time now, there has been considerable discussion about the possibility of building a recreational facility and/or a city center somewhere in Columbia Heights. These discussions have taken several different tums and have included the identification of several potential partnership strategies that the city could pursue. The purpose of the meeting on April 20 is to review this set of issues and to attempt to reach some consensus about the direction that the city should pursue. This memorandum is being provided to you for two reasons. First, it includes some important background for you to review and second, it is designed to serve as a worksheet to help you organize your thoughts. Please use it to help focus your ideas about all of the options that have been suggested and come prepared to participate in a facilitated discussion. BACKGROUND: h is important to note that both the School Board and the City Council have recognized the need for additional gym space within Columbia Heights. It is also relevant to point out that the City of Minneapolis, the YMCA and the Boys and Girls Clubs are considering the construction of a community center on Central Avenue. In Columbia Heights discussions regarding a new city center have included a city hall, library and potentially some senior housing. The city center built in Waconia, by Dunbar Development, has been considered as a potential model for a Heights city center. The recent acquisition of the NEI site,' adjacent to the Central Business District has also caused these discussions to peak. From the Desk of .... John W. Shardlow · President · 300 1" Ave. N. · Suite210 · 612-339-3300 · fax -612-337-5601 Minneapolis., MN 55401 The point in this discussion is that there are many different scenarios that could potentially play out, as the city pursues the implementation of a city center and/or recreational facility. The purpose of the upcoming meeting is to sort them out, hopefully reach some consensus on directions and decide the next steps. You may recall that in 1998, The Minnesota Design team came to Columbia Heights to work on some targeted planning areas. Their work resulted in two development alternatives, based on eleven objectives for the 40t~, 39a to 41~t Avenues area. The development alternatives were "The Town Square" and the "Urban Green Concepts". Both of these alternative visions included a coii~nunity center and other civic facilities. The following section is presented for your review. The subject of the "Community Center" is addressed in the comprehensive plan. The city has adopted goals and policies regarding these issues. It is appropriate to review these goals and policies and decide if they still represent the city's current aspirations and intentions regarding the city center and recreational facilities questions. If you believe .they are still current and relevant, that should greatly help organize your thinking. If you disagree with any part of those goals and policies, that should also prove to be a good place to start in forming your opinions. COMPREHENSIVE PLAN To assist the Council, the following is background regarding the recreational facility, and city center, from the City's Comprehensive Plan. The purpose of the Comprehensive Plan is to serve as a guide for the City Council for the next 20 years, and represents the public interest as determined during the comprehensive planning process. The following are goals and policy statements from the Comprehensive Plan. · Goal: Establish and maintain a strong sense of the community. Policy Statement: The City will support the development of a mixed-use downtown/civic core, including the Community Center and core downtown that provides a focal point for the community. · Goal: Create a unified downtown/civic core that provides a focal point for the City Policy Statement: The City will prepare a district plan for the community Cemer complex that incorporates Huset Park, local government facilities, community facilities, and links the area with con~lercial and residential opportunities along the 40~ Avenue and Central Avenue corridors. · Goal: Enhance the economic viability of the community. Policy Statement: The City will support efforts to revitalize 40a Avenue between University and Central to ensure its lasting success as part of a mixed-use Community Center. · Goal: Support intergovernmental efforts that benefit the community. John W. Shardlow · From the l}esk of.... President · 300 1N Ave. N. · Suite210 · 612-339-3300 · fax-612-337-5601 Minneapolis., MN 55401 Policy Statement: Promote efforts to increase efficiency in the provision of municipal services. Policy Statement: The City will continue to cooperate with Independent District 13 on issues of importance and interest to the residents of Columbia Heights. From the l~eak of.... John W. Shardlow · President · 3001'tAve. N. · Suite210 · Minneapolis., MN 55401 612-339-3300 · fax -612-337-5601 WORKSHEET The following sections are provided to identify the key questions that need to be answered. The questions include the most basic ones, including whether or not you still want to pursue the development of these facilities. They focus on the options related to the program for these facilities, what they should include and why. They also identify potential partners for the city in these ventures to allow a candid discussion of the pluses and minuses associated with each of these alternatives. Question Number 1. After reviewing the sections in the current comprehensive plan, do you believe that they are still an accurate representation of your goals and policies regarding the Community Center complex, and working relationships with the identified partners? If the answer is no, please jot down the points you disagree with and come prepared to share your opinions about how these goals and policies should be updated. Question Number 2. Do you believe that the city should pursue the development of a reCreational facility? If the answer is no, please explain why not. If the answer is yes, please jot down the components, features and services that should be provided in such a facility. From the De~k of.... John W. Shardlow · President · 300 I~Ave. N. · Suite210 · Minneapolis., MN 55401 6122339-3300 · fax -612-337-5601 Question Number 3. If you believe the City should pursue the development of a recreational facility, discuss the pluses and minuses associated with each of the following options: A. City develops its own facility Pluses: Negatives: B. City collaborates with the School District on a joint facility Pluses: John W. Shardlow · From the Desk of.... President · 300 l~tAve. N. · Suite210 · 612-339-3300 · fax -612-337-5601 Minneapolis., MN 55401 Negatives: Pluses: City collaborates with the City of Minneapolis, the YMCA, and the Boys and Girls clubs on a facility_ in northeast Minneapolis Negatives: John W. Shardlow · From the Desk of .... President · 300 1't Ave. N. · Suite 210 · 612-339-3300 · fax -612-337-5601 Minneapolis., MN 55401 Question Number 4: Is there a preferred site for a recreational facility? If the answer is yes, please share your thoughts about the relative merits of each of the following potential locations: A. Thc NEI site B. Huset Park C. The High School John W. Shardlow ® From the Desk of .... Pre~ideat ' 3001~Ave. N. ® Suite210 612-339-3300 · fax-612-337-5601 · Minneapolis., MN 55401 D. Valley View Elementary School E. Other (please be specific) Question Number 5. Do you believe that the city should pursue the development ora city cemer? If the answer is no, please explain why not. John W. Shatdlow * From the Desk of.... Presideat · 300 l~tAve. N. · Suite210 · 612-339-3300 · fax -612-337-5601 Minneapolis., MN 55401 Question Number 6. If you answered yes to thc idea of a new city center, what elements do you believe belong in that center? Please record your thoughts about each of the potential elements listed below, as well as any others that you would like the city council to consider. B. Police/Fire C. Senior Housing John W. Shardlow · From the 1}esk of.... President · 300 1't Ave. N. · Suite210 · 612-339-3300 · fax -612-337-5601 Minneapolis., MN 55401 Please bring your worksheets to the meeting to support the discussion. Following the workshop on the 20~, the city staffwill gather whatever additional information is relevant, given the direction provided at the meeting. We will also advise the council about opportunities for public input, tailored to the council's direction. l~rom the I~esk of.... JolmW. Shardlow * President · 300 1~ Ave. N. · Suite210 · Minneapolis., MN 55401 612-339-3300 · fax -612-337-5601 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Meeting of April 20, 2004 AGENDA SECTION: Items for Consideration ORIGINATING DEPARTMENT EXECUTIVE NO: 4-B Community Development DIRECTOR APPROVAL ITEM: Approve contract with Southern MN BY: Robed Streetar BY: Environmental for the asbestos abatement of the DATE: Apd114, 2004 NEI buildings BACKGROUND: At the direction of the EDA, staff sent thirteen applications to prospective bidders, and received eight bids for asbestos abatement of the NEI building. Bids were received from: Bidder Southern Environmental Envirobate ACI Envirotech Mavo Systems Twell Environmental Viet and Company Dennis Environmental Amount $48 615 $54 240 $59 200 $70 000 $99 520 $103 011 $184 387 $198 700 The bids include the removal of all fdable asbestos, and the transite panels in room 417, but does not include the roofing-patching compound. The cost to remove the compound could not be determined during the purchase agreement period between the EDA and NEI as to do so required holes to be drilled into the roof, and that NEI would not allow. This element of the asbestos abatement will be addressed before demolition. Anoka County indicates reallocated CDBG grant funds from the sale of the four-plex at 4607 Tyler Street are available to pay for the asbestos abatement. Depending on the subsequent reuse of the NEI site, a portion of the CDBG funds may have to be repaid. In that event, the funds repaid would remain solely for use in other projects in Columbia Heights. Please see attached bidding information. RECOMMENDATION: Staff recommends awarding the asbestos removal contract to Southern MN Environmental for the asbestos abatement of the NEI building in an amount not to exceed $48,615. RECOMMENDED MOTION: Move to approve asbestos abatement contract with Southern MN Environmental for the NEI building at 825 41StAvenue in an amount notto exceed $48,615; pending review and approval by the City Attorney, and furthermore, to authorize the President and the Executive Director to enter into an agreement for the same. Attachments EDA ACTION: h:\Consent2004\EDA NEI Asbestos Abatement2 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Meeting of April 20, 2004 AGENDA SECTION: Items for Consideration ORIGINATING DEPARTMENT EXECUTIVE NO: 4-C Community Development DIRECTOR APPROVAL ITEM: Approve contract with F.M. Frattolone BY: Robert Streetar BY: for the demolition of the NEI Building. DATE: April 14, 2004 BACKGROUND: At the direction of the EDA, staff sent nine applications to prospective bidders, and received four bids for the demolition of the NEI building. Bids were received from: Bidder F.M. Frattolone Carl Bolander & Sons Veit & Company RJK Construction Amount $286,500 $294,800 $360,444 $347,900 The bids include demolition of the building, the removal of all non-friable asbestos, and the removal and preservation of the front archway, and balusters, with demolition to begin after July 1. Anoka County indicates the City will receive $284,600 of CDBG grant funds to pay for the demolition, with the remaining $1,900 to come from reallocated CDBG funds from the sale of the four-plex at 4607 Tyler Street. Depending on the subsequent reuse of the NEI site, a percentage of the CDBG funds may have to be repaid. In that event, the funds repaid would remain solely for use in other projects in Columbia Heights. Please see attached bidding information. RECOMMENDATION: Staff recommends awarding the demolition contract to F.M. Frattolone for the demolition of the NEI building in an amount not to exceed $286,500. RECOMMENDED MOTION: Move to approve the demolition contract with F.M. Frattolone for the NEI building at 825 41st Avenue, in an amount not to exceed $286,500 and pending review and approval by the City Attorney; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Attachments EDA ACTION: h:\consent 2004\EDA NEI Demolition Contract2 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: April 20, 2004 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: 4-D DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: 40th & University-Predevelopment Agreement BY: Randy Schumacher BY: DATE: April 15, 2004 BACKGROUND: At the March 16th Economic Development Authority meeting, Mr. Gary Peterson asked the board if they would consider a proposal from the Partnership of Williams-Peterson for the redevelopment of 40th & University. Mr. Peterson outlined a general concept plan for the site as well as potential lessees. President, Murzyn requested Mr. Peterson to prepare a proposal for the April 20, 2004 EDA meeting. ANALYSIS: Based on the Williams-Peterson proposal, they are requesting the same 120 day exclusive Predevelopment Agreement that was awarded to the Haugland Company. The attached agreement attempts to formulate a definitive development contract and addresses the following issues: · Purchase price of the property · Satisfactory mortgage and equity financing · Resolution of zoning, land use and site design issues · Economic Feasibility and soundness of the development In addition, the EDA board set up four parameters of priority for the Haugland Company to work within: 1. Upscale development with single or multi-use tenant 2. No fast food restaurants 3. No auto related activities 4. Uses that would provide vitality and needed services along University Avenue If the Williams-Peterson Partnership can meet the requirements of the Predevelopment Agreement, then staff will retum to the board with a final development contract for board consideration. RECOMMENDATION: Staffhas no recommendation. This is a board policy decision based on the developer's present information. Attachments EDA ACTION: h: \consent Form2004\EDA 40tn &Univ. Williams-Peterson Proposal WLLLIAMS - PETERSON REAL ESTATE A PARTNERSI:IYP PROPOSAL We propose to the city of Columbia Heights to purchase the 40t~ and University site that the city owns and construct a commemiat facility. The Haugland Company has let their agreement expire, so we would like to pursue a similar agreement with the city. (120 days - exclusive) We propose a larger building and desire to move ahead without it being pre-leased. We are in negotiations with a major tenant at this time and it looks promising. We have met with our financial institution and they have g/ven us preliminary approval - if the city is agreeable to this proposal, we will proceed with building plans. Tenants would be pursued with the idea of providing needs of the surrounding community surveying the neighborhood and utilizing the McCombs study that the city has on file. Our construction schedule would be a completed building by April 2005. This includes the M.G.S. Building Franklin Builders II, Inc. would be the prime building contractor. WILLIAMS - PETERSON REAL ESTATE A PARTNERSHIP 40a & University - Columbia Heights Preliminary Development Proforma Assumptions: Land Size: 1.074 acres Retail Building Size: approximately 8,000 square feet Rent: $14.50/rentable square foot, triple net (approximately 13,500 rentable square feet) Land Costs: Land $50,000 Tests, Surveys, Borings $8,500 $58,500 Building Costs: Building Shell (Dsgn, Eng, Const) ($80/sq. ft.) Tenant Improvements ($15~sq. ft.) Anticipated Change Order Allowance Development Costs: Land 8: Construction Interest Government Charges: (Park Dedication, City Review, Storm water, Streets, etc.) SAC/WAC Fees (5 tm/ts ~ $3,000/unit) Project Management Costs Financing, Closing, Title Ins., RE Taxes Leasing Commissions ($5/sq. ft.) Legal, Marketing Misc. Development Fee Lease-up Allowance Building/Development Continge~ncy. $1,120,000 $ 202,500 $ 38,583 $1,361,083 $13,600 $12,350 $15,000 $78,000 $26,000 $67,500 $53,000 $75,800 $ 9,000 $324,3O0 $ 43,800 Estimated Total Development Cost: $1,787,683 HEIGHTS SHOPS 40th Avenae & University, Columbia Heights Return on Equity Assumptions: · Building Value · Debt (7570) · Payments (6% @ 20 year) SI,g00,000 $1,350,000 $ 122,600 Net Income (after reserves and:allowance for vacancy) Cash available after debt service $180,000/yr. $ 57,400/yr. Based on $450,000 of equity, estimated return is approximately 12.76% Several factors that are taken into consideration when determining project risk include: · Debt on project is bank debt with personal guarantees · Will the tenants be "good credit" tenants? · The bank provide 80% debt financing · Interest rate risk · Vacancy and releasing risk PRELIMINARY DEVELOPMENT AGREEMENT THIS AGREEMENT, dated this __ day of ,2004 by and between the Columbia Heights Economic Development Authority, a body politic and corporate under the laws of Minnesota, ("Authority") and Williams-Peterson Real Estate, A Partnership ("Developer"): WITNESSETH: WHEREAS, the Authority has determined that it is in Authorities best interest that Developer be designated sole developer of the Property during the term of this Agreement; and WHEREAS, the Authority and Developer are willing and desirous to undertake the Development if (i) a satisfactory agreement can be reached for the purchase price of the Property and the Authorities commitment for public costs, if any, necessary for the Development; (ii) satisfactory mortgage and equity financing, or adequate cash resources, for the Development can be secured by Developer; (iii) satisfactory resolution of zoning, land use and site design issues and (iv) the economic feasibility and soundness of the Development and other necessary preconditions have been determined to the satisfaction of the parties. NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set forth herein, the parties agree as follows: 1. Negotiations between the parties shall proceed in an attempt to formulate a definitive development contract ("Contract") based on the following: Developer's current proposal which shows the scope of the proposed Development in its latest form as of the date of this Agreement, together with any changes or modifications required by the Authority; b) A mutually satisfactory Contract to be negotiated and agreed upon in accordance with negotiations contemplated by this Agreement; c) Such documentation regarding economic feasibility of the Project as the Authority may wish to undertake during the term of this Agreement; and d) Other terms and conditions of this Agreement. It is the intention of the parties that this Agreement (a) documents the present understanding and commitments of the parties and (b) will lead to negotiation and execution of a mutually satisfactory Contract for the Development prior to the termination date of this Agreement. The Contract (together with any other agreements entered into between the parties hereto contemporaneously therewith) when executed, will supersede all obligations of the parties hereunder. Notwithstanding anything to the contrary herein, the Authority shall have no obligation to provide any financial assiStance to the Developer or approve any action in connection with the Development unless and until final approval by the Authority of a definitive Contract. -1- 3. During the term of this Agreement, the Developer shall: Submit to the Authority a design proposal to be approved by the Authority showing the location, size, and nature of the proposed Development, including floor layouts, renderings, elevations, and other graphic or written explanations of the Development. The design proposal shall be accompanied by a proposed schedule for the starting and completion of all phases of Development. b) Submit an over-all cost estimate for the design and construction of the Development. c) Submit a time schedule for all phases of the Development. d) Undertake and obtain such other preliminary economic feasibility studies, income and expense projections, and such other economic information as the Authority may desire to further confirm the economic feasibility and soundness of the Development. e) Submit to the Authority the Developer's financing plan showing that the proposed Development is financially feasible. f) Furnish satisfactory, financial data to the Authority evidencing the Developer's ability to undertake the Development. *Relating to issues a) through f), reasonable progress must be made to the satisfaction of the Authority during the first 30-60 days. This Agreement is effective for a term ending 120 days from its date, unless extended by mutual written agreement of the parties. The Executive Director is authorized to execute any such extension on behalf of the Authority. o Upon execution of this Agreement, the Authority acknowledges receipt from the Developer of a deposit in the amount of $3,000, from which funds the Authority may pay any third party out-of-pocket costs incurred by the Authority or Authority in connection with the Authorities activities furthering the Development from and after the date of this Agreement (hereafter, the "Authority Costs"). If at any time the date of this Agreement the Authority determines that its expenses will exceed $3,000, the Authority may notify the Developer of the amount of such additional costs. Within ten calendar days of receipt of said notice, the Developer shall deliver to the Authority the required additional funds. If a Contract is successfully negotiated, any unused balance in the funds deposited under this Section 5 (except the nonrefundable portion thereof) shall be returned to the Developer upon execution of the Contract (unless the parties specify otherwise in the Contract). If this Agreement is terminated in accordance with its terms, the Authority will return to the Developer the balance of any funds deposited under this section (less any amounts that are nonrefundable under the terms of this section) as of the date of receipt of the notice of termination, and less any Authority Costs incurred through the date of receipt of the notice of termination. For the purposes of this paragraph, Authority Costs are considered to be incurred if they have been paid, relate to services performed, or are -2- payable under a contract entered into, on or before the date of receipt of the notice of termination. 6. This Agreement may be terminated upon 10 days' written notice by either party to the other if: (i) A party fails to perform any of its obligations hereunder, and fails to cure the default within 30 days after receipt ofwfitten notice thereof; or (ii) An impasse has been reached in the negotiation of any material term of the Contract. Upon termination under this Section, neither party thereafter shall have any liability or obligations to the other except as otherwise provided in Section 5 hereof. o Developer is designated as sole developer of the Property during the term of this Agreement. During the term of this Agreement, the Authority agrees that it will not negotiate or contract with any other party concerning the development or sale of the Property. The Developer shall not assign or transfer its rights under this Agreement in full or in part without the prior written consent of the Authority. In the event that either party, its heirs, successors or assigns, fail to comply with any of the provisions of this Agreement, the non-defaulting party may proceed to enfome this Agreement by appropriate legal or equitable proceedings, or other similar proceedings. 9. If any portion of this Agreement is held invalid by a court of competent jurisdiction, such decision shall not affect the validity of any remaining portion of the Agreement. 10. In the event any covenant contained in this Agreement should be breached by one party and subsequently waived by another party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach. 11. Notice or demand or other communication between or among the parties shall be sufficiently given if sent by mail, postage prepaid, return receipt requested or delivered personally: As to the Authority: 590 40th Avenue NE Columbia Heights, MN 55421 b) As to the Developer: 3712 Lincoln Street NE Columbia Heights, MN 12. This Agreement may be executed simultaneously in any number of counterparts, all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and its seal to be duly affixed hereto and the Developer has caused this Agreement to be duly executed as of the day and year first above written. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) BY: Don Murzyn Jr. ITS: President BY: Walter R. Fehst ITS: Executive Director WILLIAMS-PETERSON REAL ESTATE, A PARTNERSHIP BY: ITS: By: ITS: -4- EXHIBIT A LEGAL DESCRIPTION OF PROPERTIES 322 40TM AVENUE Lot 15, Blk 68, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota 3944 Lookout Place Rear. Block E, Th. Pt. Of N 1/2, front and rear of Lot 2 thence Lines East of East line of University Avenue as the same is now laid out & constructed 3950 Lookout Place Rear. Of Blk East of Columbia Heights Annex, City of Columbia Heights that part of Lot 1 Blk E. Rearrangement of Block E, Columbia Heights Annex to Minneapolis Desc as follows-com at the SE corner of said Lot 1-TH nearly along the west line of Lookout Place at Dist. of 90 Ft-th west to a point on the west line of said lot dist. 128 ft south from the north line of said lot-th south along the west line of said lot to the south line thereof-th east to the pt of beg-ex th pt thereof lying west of University Avenue N.E. Tract "B" Lot 16 & that part of Lot 17, Block 68, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota lying southwesterly of the following described "line 1" and northwesterly of the following described "Line 2". "Line 1" Beginning at a point on the south line of said Lot 17, distant 21.00 feet westerly of the southeast corner; thence northwesterly to a point on the west line, said point being 100.00 feet southerly of the northwest corner and there terminate. "Line 2" Beginning at a point on the north line of said Lot 17, distant 10.00 feet easterly of the northwest corner; thence southwesterly to a point on the west line, said point being 10.00 feet southerly of the northwest corner and there terminate. 3955 University Avenue Rear. Block E, N. 128feet of Lot 1 and also th. Pt. Of Lot 1 lying West of University Avenue as extended. Ex North 30ft for hwy H:\40* & University~Preliminary Development Agreement-Williams-Peterson -5- COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Meeting of: April 20, 2004 AGENDA SECTION: Items for Consideration ORIGINATING DEPARTMENT: CITY MANAGER'S NO: 4-E Community Development APPROVAL ITEM: Set Special Meeting to Discuss the BY: Randy Schumacher BY: Schafer Richardson Predevelopment DATE: April 15, 2004 Agreement BACKGROUND: Schafer-Richardson has prepared their Predevelopment Agreement for the EDA's consideration. Staff is recommending holding a special meeting on Tuesday, April 27, 2004, 8:00 pm. at City Hall, in Conference Room 1 to go over the agreement. RECOMMENDATION: Staff recommends calling a special meeting of the EDA at 8:00 pm on Tuesday, April 27, 2004 to discuss the Schafer-Richardson Predevelopment Agreement for the Industrial Park Project. RECOMMENDED MOTION: Move to set a Special Meeting of the EDA at 8:00 pm on Tuesday, April 27, 2004 in the City Hall, Conference Room 1, to discuss the Schafer-Richardson Predevelopment Agreement for the Industrial Park Project. Attachments COUNCIL ACTION: h \EDA Consent2004\Spec.Mtg Predev. Agree. TO: FROM: DATE: SUBJ: EDA Commissioners Robert Streetar, Director 15 April 2004 City Goals The following are the City's goals and some of the actiOns that have occurred, or are occurring regarding each of these goals. 1. Improve the City's Housing Stock Through the City's partnership with the Greater Metropolitan Housing Corporation (GMHC), eight new single-family homes will be built and sold before the fall of 2004. This is possible through a $240,000 grant from the Metro Council, and the Minnesota Housing Finance Agency. Currently working to prepare, and implement a Truth in Housing Program, that will improve the quality of the housing stock, and clean up and preserve residential neighborhoods. 2. Rehabilitate and improve the City's Infrastructure Through the City's Street Rehabilitation program, public infrastructure continues to be rehabilitated and improved. This program includes replacing or rehabilitating water mains, sanitary sewer, storm sewer and City streets is a systematic manner through the identified street zones. · In 2002, Central Avenue Improvements were completed on Trunk Highway 65 from 37th to 43rd Avenues. In 2003, the City accelerated its annual sanitary sewer-lining program to line and extend the life of critical trunk mains in Sanitary Sewer District 1, which serves approximately 65% of the City. 3. To Continue to improve the physical appearance of City's commercial and industrial areas. · Industrial Park Redevelopment Project- underway · Kmart Redevelopment Project-underway · 37th and Stinson Redevelopment Project- underway · 40th and University Redevelopment Project- underway · 39th and Central Redevelopment Project- planning to begin fall' 2004. · NEI Redevelopment Project - underway · Implementation of the Central Avenue Design Guidelines 4. To Increase the City's commercial and industrial property tax base. · See #3 above. To improve the City's facilities (City Hall, Recreation Center, Library, Municipal Services Center, and Park & Recreational Facilities). Joint City Council, EDA, and Planning Commission meeting to be held April 20~h, 2004 to discuss this item. A Master Plan for the City's largest park, Huset Park, is nearing completion and should be presented to the City Council the summer of 2004. In 2001/2002, Prestemon Park was reconstructed with a new age specific playground, walking trail, softball field, landscaping and wetland creation. 2 Columbia Heights Industrial Park Redevelopment Five deep monitoring wells are being installed in various locations within the Industrial Park. These were required by the Minnesota Pollution Control Agency to determine the levels of chlorinated solvents that may exist in the ground water. Our consulting engineering company, Short Elliott Henddckson has completed the preliminary design layout for the parkway system in the Industrial Park. In addition, the first phase of the traffic study has been completed. Over the past six weeks, City staffhas been meeting with Schafer-Richardson and their development team to craft a Predevelopment Agreement. A special EDA meeting has been set for April 27th at 8:00 pm, at City Hall, to review this agreement and become more familiar with the details of the Schafer-Richardson proposal. 4855 University Avenue At the direction of the EDA board, the blighted single-family home at 4855University Avenue was demolished on April 19, 2004. Teaming up with the Public Works Department, bids were taken and the low bid was awarded to Kevitt Excavating Inc. in the amount of $5,775. The bid included site restoration, hazardous building inspection, and asbestos removal. Taco Bell Redevelopment Borders Foods, the franchise owners of Taco Bell, located at 49th and Central, have been working on redeveloping their property for the past two years. Their proposal consists of tearing down the existing Taco Bell building, acquiring the old car wash property, located directly to the north, and building a new Taco Bell/Long John Silver's convenience foods restaurant. Negotiations for the purchase of the Car Wash have not been successful to date. Mr. Jim Erickson, representing Taco Bell, has requested assistance from the EDA in the form of Tax Increment Financing to fill the acquisition gap, or condemnation support to obtain a market rate sale. A more detailed discussion will take place at the EDA meeting, thus giving staff direction on this project.