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HomeMy WebLinkAboutEDA AGN 03-16-04CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E.. Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: www. ci. columbia-heights, mn. us EDA COMMISSIONERS Don Murzyn Jr. Patdcia Jindra Bruce Kelzenberg Julienne Wyckoff Bruce Nawrocki Bobby Williams Tammera Ericson ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING 7:00 P.M., TUESDAY, MARCH 16, 2004 CITY HALL, CONFERENCE ROOM 1 .,4 GENDA 1. CALL TO ORDER/ROLL CALL 2. PLEDGE OF ALLEGIANCE. e 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.) A. MOTION: Move to approve the consent agenda items as listed below: 1) Approve EDA Meeting Minutes for January, and February~ 2004. MOTION: Move to approve the minutes of the January and February, 2004 EDA Meetings as presented. 2) Approve the Financial Report and Payment of Bills MOTION: Move to approve Resolution 2004-03, a Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statement and payment of bills for the months of January and February, 2004. 4. ITEMS FOR CONSIDERATION A. Approve Contract for Asbestos Abatement of NEI Buildin~ MOTION: Move to approve asbestos abatement contract with Southern MN Environmental for the NE1 building at 825 41st Avenue in an amount 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. B. Approve Contract for Demolition of NEI Buildin~ 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. 5. ADMINISTRATIVE REPORTS 6. ADJOURNMENT Walter R. Fehst, Executive Director H:\edaAgenda2004X3-16-2004 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 hearing impaired r~n]xr THE CItY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS Of DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES I~QUAL (~PPORTUNITY EMPLOYER ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES January 21, 2004 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 8:58 p.m. Present: Absence: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams, Tammera Ericson, and Bruce Kelzenberg Bruce Nawrocki PLEDGE OF ALLEGIANCE Murzyn stated Bruce Nawrocki was unable to attend the meeting as he had a meeting at the Suburban Rate Authority and was disappointed the EDA meeting wasn't switched as he had previously requested. ELECTION OF OFFICERS MOTION by Ericson, second by Williams, to nominate and appoint Don Murzyn, Jr. for President; Patricia Jindra as Vice President; and Bruce Kelzenberg as Secretary/Treasurer. All ayes. Motion Carried. 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 Potential Acquisition of NEI Streetar stated the report provided in the packet outlines the work staff has been doing to fulfill the obligations of the purchase agreement. In December of 2003, both parties formally signed an agreement to purchase the property. On December 31, 2003 the building was vacant. The agreement calls for the closing on or before February 6th. The property includes approximately 5.5 acres of land and a 120, 000 sq. fi. building. Staff has determined the following: $600, O00 for acquisition, the demolition and asbestos abatement will not exceed $550,000, which could be lower as four bids were received, with the lowest at $286,500 and includes salvaging the archway and balusters. NEI would not allow the asbestos testing, as that would require breaking into chases in the building. The maximum amount expected will not exceed $300,000. SEH, engineering inspected the building and stated it qualifies as substandard, which allows the use of tax increment financing to promote redevelopment, and based on the review of a Phase 1 report by Peer Environmental and Engineering Resources, Inc., and consultations with ProSource Technologies, Inc., there does not appear to be any contamination on the site. Streetar also stated there is a fuel oil tank that would need to be removed for approximately $8,000 by Peer Environmental and that the property was appraised at about $1.1 million based on 98 housing units on the property using the current zoning status of R4. Staff recommended accepting the report and recommending at the City Council meeting on January 26, they loan the EDA $600, O00 from fund 390. 00-13100 to purchase the property. Economic Development Authority Meeting Minutes January 21, 2004 Page 2 of 3 Streetar introduced Stacie Kvilvang from Ehlers who has been wonderful in getting bids, quotes for demolition, working with Tax Increment people and inspections of the building and asked her to give the board a little background on her experience. Kvilvang stated she is currently with Ehlers and Associates, prior to that she worked with the City of Brooklyn Park for l O years, where they did public rental partnership with a lot of the multi-family communities and went to the Legislature to get taxing rights, which is used to provide funds for their townhome associations that could not obtain private financing to major improvements on the complex. She worked on the Village Creek Redevelopment, which was 140 acres of mixed use property used for redevelopment, andjust finished negotiating the Apache Plaza redevelopment for the City of St. Anthony. The property was purchased the end of November by the developer, Hergerber's will vacate by the end of March, Cub Foods will stay, Walmart will be one of the main backers, there will be a $600, O00 face lift to the building, 50, 000 sq. feet of small commercial space, 256 owner-occupied units, called stacked flats with an average value of $240, 000, there will be some higher end townhomes in the $350,000 range and 220 market rate apartments. She also negotiated the St. Anthony Liquor Stores. Streetar indicated that if the board was ready, we should probably move forward on using Stacie's services to develop properties as quickly as possible. Wyckoff stated we should move forward with the purchase of the building and asked Stacie to explain the brick she brought with her. Kvilvang stated she worked for the City of Brooklyn Park for l O years and has been involved with tearing down many buildings and one of the things they did with some of their significant projects was to take one brick and replace it as a plaque. Fehst felt there is no reason for the City to hold off on the process of redeveloping various sites in the City. Murzyn suggested staff put together something with the cost involved for board review next month. Williams stated he agreed, but wants Mady's to be informed, as they have told him they haven't been notified of anything. Streetar stated there hasn't been any negotiations or meetings. Williams stated if the City Council has any intent of giving this land away like they did the 40th and University property, he would be voting against it. He felt the City should be able to get a potential amount for the property. Streetar stated the agreement has expired on the sale of 40th and University and the City could do whatever they want to at this point. Murzyn stated he agreed we shouldn't give the property away and could use that property for many other uses. It won't hurt to hold onto the property until the Industrial Park starts to see what we can get out of it. MOTION by Wyckoff, second by Ericson, to accept the report and request from the City Council at their January 26, 2004 meeting a loan for $600,000 from fund 390.00.13100 to purchase the NEI property. All ayes. Motion Carried. Economic Development Authority Meeting Minutes January 21, 2004 Page 3 of 3 ADMINISTRATIVE REPORTS Industrial Park Schumacher stated last year it was determined it would be very expensive to clean up the environmental issues in Phase 1 of the Industrial Park. The City applied and received grants in the total amount of $1,233, 3 71; $1,001,640from the Department of Employment and Economic Development (DEED)for Contamination Clean-Up and $231, 731from the Metropolitan Council to correct contamination in the Industrial Park. These funds will be used to address the soil, water and asbestos contamination in Phase 1. On January 26th there will be a formal presentation before City Council by State Commissioner, Matt Kramer transferring the grant proceeds to the City Council. In Addition, Anoka County Commissioner, Jim Kordiak, Metropolitan Council Member, Tony Pistilli, and State Senator, Satveer Chaudhary, will be recognized for their active roles and support in the project. Streetar commended Schumacher for the great job he has done obtaining grants and putting this project together. Commissioners also thanked him. 37th & Stinson Redevelopment Streetar stated the Planning and Zoning Commission met for the first time on January 13th to discuss options for the site. Some of the ideas brought up were a community center, relocate one of our City Liquor Stores and also there have been two different firms interested in medical office buildings in the area. Staff will keep the board informed, as this was the first of many meetings to be held. Wyckoff stated she would like to see more restaurants in Columbia Heights, was pleased with the housing going into the Kmart site, suggested the NEI building would be a great spot to build a City Hall and combine it with a Community Center, and also asked about the money being given out by Mrs. Ray Cross for youth centers, can Columbia Heights apply for the funds. Streetar stated the money was designated for Iow-income housing communities. Anoka County, Rail Authority (ACRA) Streetar stated the Anoka County Rail Authority is proposing to expand their mission to include assisting City's in their redevelopment and economic development activities. Funding wouM be generated through their existing rail levy. ACRA is levying $2.8 million to expand their powers, which would let Columbia Heights receive some of the funds. Streetar and Murzyn have volunteered to be on the committee. ADJOURNMENT Motion by Williams, second by Jindra, to adjourn the meeting at 9:47 pm. All ayes. Motion Carried. Respectfully submitted, Cheryl Bakken Community Development Secretary H:~EDAminutes2004\ 1-21-2004 Z cI Z ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES FEBRUARY 2, 2004 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 6:40 p.m. Present: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE ITEMS FOR CONSIDERATION ADOPT RESOLUTION 2004-02~ APPROVING AND SPECIFYING TERMS OF THE INTER-FUND LOAN FOR THE NEI PROPERTY Streetar stated staff provided the board with the Resolution the City Council approved, which stated the loan terms for the $600,000 that the EDA will use to buy the NEI property. The procedure for this type of transaction is that the City Council approves the loan terms and then the EDA has to except the loan term. The loan terms state that the City will loan the EDA $600,000 at a rate of 4% for a term of up to 15years. This is done so that in the event the EDA chooses to use Tax Increment Financing and redevelops the property privately, in order to repay the TIF funds, you need to have the loan terms in place before the money transfers. If the board decides not to use tax increment financing or are unable to use it, the City Council, by resolution can prescribe any terms of the loan. The loan can be paid back with tax increment money, sale of land or any source of revenue available to the EDA. Nawrocki ask where the funds would come from to board up the building and tear it down. Streetar stated there has been no decision to board up the building and staff has a grant application submitted in the amount of $3OO, OOO from CDBG funds. $100,000 will come from reallocated CDBG funds from the sale of 4607 Tyler. Fehst stated Henry Henry, City Maintenance man, will be available to do the daily checks and on weekends that are required by law. Henry does have some background with the building as he worked their part time. Streetar stated staff is preparing bids for asbestos removal. Once they are received, staff will come back to the EDA to decide who will demolish the building and who you want to remove the asbestos. It will take about 4 to 6 weeks to remove all the asbestos. You are looking at 90 to 120 days by the time the demolition will occur. Streetar stated the broker said it costs approximately $100, 000 per year to operate the building, which includes cable, telephone, electricity, etc. Streetar estimated it would cost between, three to five hundred per month, as we won't be using that much utilities. Staff obtained an appraisal on the land only, which was based on the current zoning of R-4 and looking at approximately 20 units per acre, it was appraised at $1,066,000. If the EDA choose to redevelop it as residential, for every unit of housing you would get approximately $1 O, 000 to $11,000 in land sale. Nawrocki was concerned about where the money would come from to heat the building. Streetar Economic Development Authority Meeting Minutes February 2, 2004 Special Page 2 of 2 stated earlier this year the EDA developed a fund 420, which is being used for redevelopment of projects in the City and would be more than enough to pay for the utilities. Nawrocki asked if the security system comes with the building. Streetar stated the system is part of the sale and is paid for monthly. Fehst stated staff would be looking into a system like Murzyn Hall has with the Police Department. It is directly wired into the computers in police cars. Streetar stated maybe Public Works could plow out the sidewalks, so the building looks. Wyckoff asked what the board felt about having an open house this spring where residents could come in and walk through the building one final time, with possibly something in the gym. Fehst stated we would have to make sure we are covered with our insurance, just incase someone would fall, but agreed it would be a good idea. Fehst stated Wyckoff has expressed interest in having a sale of different things, like Coca-Cola items. Wyckoff asked if there is anyone that would be able to go into the building and start disassembling items for the sale. Fehst stated maybe the Rising to New Heights group would be interested in that as long as the funds received were put back into the community. Ericson, who is also on the Rising to New Heights Committee, stated it would possibility be something they would be interested in. Nawrocki stated he would hke to see the first floor boarded up for security. Williams stated, if we tell the Police to keep an eye on the building, we wouldn't have any trouble. Wyckoff stated the building has a lot of houses around it and didn 't feel there would be a problem with people breaking into the building. Murzyn suggested we wait until after we purchase the building, decide when we are going to have the open house and after that time, board it up if necessary. MOTION by Wyckoff, second by Williams, to Adopt Resolution 2004-02, Approving and specifying terms of the Inter-Fund Loan for the N.E.I. Property. All ayes. Motion Carried. Other Business Streetar stated he met with Bruce Nedegaard this morning. The first week in March, he wants to come to the EDA to present his proposal for the Sheraton Hotel development at the corner of 49th and Central and get feedback from the board. ADJOURNMENT Motion by Williams, second by Wyckoff, to adjourn the meeting at 7:00 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H:XEDAmmutes2004~February 2, 2004Special II II COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: March 16, 2004 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Robert Streetar BY: DATE: March 8, 2004 BACKGROUND: The bound Financial Report for the months of October, November and December of 2003 draft Resolution 2004-03 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 fund and department. The reports cover the activity in the calendar (fiscal) year from January 1 through February 29, 2004. RECOMMENDATION: Staffwill be available to answer specific questions. If thc report is satisfactorily complete, wc recommend the Board take affirmative action to receive the Financial Rcpor~ and approve thc payment of bills. RECOMMENDED MOTION: Move to approve Resolution 2004-03, Resolution of thc Columbia Heights Economic Development Authority (EDA) approving the Financial Statement and Payment of Bills for thc months of Sanuary and February of 2004. EDA ACTION: H: \EDAConsent2004\Jan-Feb. 2004 Financial EDA RESOLUTION 2004-03 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR JANUARY AND FEBRUARY 2004 AND PAYMENT OF BILLS FOR THE MONTHS OF JANUARY AND FEBRUARY OF 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 months of January and February of 2004 and the list of bills for the months of January and February of 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 fimds; 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\EDA2004-03 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Meeting of March 16, 2004 AGENDA SECTION: Items for Consideration ORIGINATING DEPARTMENT EXECUTIVE NO: 4-A Community Development DIRECTOR APPROVAL ITEM: Approve contract with Southern MN BY: Robed Streetar BY: Environmental forthe asbestos abatement of the DATE: March 11,2004 NEI buildings Bidder Southern Environmental Envirobate ACI Envirotech Mayo Systems Twell Environmental Viet and Company Dennis Environmental 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: Amount $48,615 $54,240 $59,200 $70,000 $99,520 $103,011 $184,387 $198,700 The bids include the removal of all friable 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 has indicated the abatement could be paid for using reallocated CDBG grant funds from the sale of the four-plex at 4607 Tyler Street. Subsequently, the cost to the City would be zero. 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 41 st Avenue in an amount 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. Attachments EDA ACTION: h:\Consent2004\EDA NEI Asbestos Abatement COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Meeting of March 16, 2004 AGENDA SECTION: Items for Consideration ORIGINATING DEPARTMENT EXECUTIVE NO: 4-B Community Development DIRECTOR APPROVAL ITEM: Approve contract with F.M. Frattolone BY: Robert Streetar BY: for the demolition of the NEI Building. DATE: March 11,2004 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,$00 $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 and completed by August 1. Anoka County has notified the City indicating the City will receive $284,600 of CDBG grant funds to pay for the demolition. The remaining $1,900 could be paid for using reallocated CDBG grant funds from the sale of the four-plex at 4607 Tyler. Subsequently, the cost to the City for the demolition is zero. 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 Contract TO: From: DATE: SUB J: EDA Commissioners Robert Streetar, Community Development Director March 12, 2004 Administrative Update Industrial Park Redevelopment Update At the March 8th City Council meeting, contracts were approved for engineering feasibility and contamination clean up in the Industrial Park. From these reports, the City Council will have detailed information addressing sewer, water, roads, and surface water management needs related to the redevelopment project. In addition, specifications will be drafted for future bidding of soil and water clean up, building demolition and asbestos abatement. Staff will be meeting with fiscal and legal council to prepare a Predevelopment Agreement outlining the responsibilities of the City versus the developer, SchaferRichardson, in the redevelopment of the industrial park. This document will be presented for review by the EDA in April. Kmart Bruce Nedegaard is preparing a redevelopment concept plan for the area that includes the Savers building, BW3, Welle Auto and subway commercial building. Staff expects to bring that concept to the EDA for review and feedback in April. 39th & Central Burger King, which is owned by the Nath Companies of Bloomington, has indicated they are interested in selling to the City. They are aware of the City's intent to redevelop that area. The owners of Columbia Heights rental have also indicated their interest in selling to the City. This would be a good opportunities to acquire two significant properties that could greatly propel the redevelopment of this area. In addition, the owner of the property located at 3912 Central Avenue has asked if the City is interested in purchasing her property. The list price is $179,900. This property as a residential use is a non-conforming use. This could also be a good opportunity to improve the Central Business District, by removing this nonconforming use.