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.