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HomeMy WebLinkAboutEDA AGN 08-17-04CITY 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. Patricia Jindra Bruce Kelzenberg Julienne Wyckoff Bruce Nawrocki Bobby Williams Tammera Ericson ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING 7:00 P.M., TUESDAY, AUGUST 17, 2004 CITY HALL, CONFERENCE ROOM 1 AGENDA 1. CALL TO ORDER/ROLL CALL 2. PLEDGE OF ALLEGIANCE o 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. Approve EDA Minutes of the Regular Meeting of May 25, 2004. MOTION: Move to approve the minutes of May 25, 2004 EDA Meeting as presented. Approve the Financial Report and Payment of Bills MOTION: Move to approve Resolution 2004-07, a Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statement and payment of bills for the months of May, June and July 2004. 4. ITEMS FOR CONSIDERATION- None 5. ADMINISTRATIVE REPORTS- Reports by Robert Streetar and Randy Schumacher 6. ADJOURNMENT Walter R. Fehst, Executive Director H:\edaAgenda2004\8-17-2004 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 only. 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 TUESDAY, MAY 25, 2004 CALL TO ORDER/ROLL CALL President Murzyn called the meeting to order at 7:06 p.m. Present: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE Nawrocki expressed his personal displeasure at the way the special meeting was called. Staff is to check with all of the members of this body to see if they are available, not just call a meeting whether or not they are available. Streetar left a message about 5pm yesterday stating the meeting would be at 8pm, he checked with staff today only to find out the meeting was at 7pm, he represents the City on the North Shore Commuter Rail Commission which he signed up for the meeting three or four weeks ago. Fehst asked Wyckoff if she announced the time at the City Council meeting last night. Wyckoff stated she said if you don't hear otherwise, the meeting wouM be at 7pm. Nawrocki said, what the hell does she know, does she set the times. He took the time to talk to Streetar yesterday. Williams asked if everyone was contacted. Bakken stated she either called or e-mailed everyone to see if they could meet tonight instead of last week, as the agreement documents were not ready yet. Streetar stated Cher does the best she can to get a hold of everyone, which takes 3 to 4 hours. The By-laws state we need a quorum, which means we try to get as many to the meeting as possible, but doesn't mean we have to make sure everyone is there. If the body wants staff to do it the other way, we can change the bylaws to reflect this. Nawrocki stated if that's your way to conduct public business to a public body, then you have something to learn. The bylaws don't say you call a special meeting when you get a quorum. They talk about what it takes to transact business. Fehst asked the President if he could speak. Nawrocki stated he was talking, stood up and leaned over Fehst, and said when he's done talking he can talk. Fehst told Nawrocki to get out of his face, your not going to threaten me, I'm sick of you threatening everyone. Nawrocki stated, you want to be a professional, then you should talk like one. Fehst stated he was a professional, unlike somebody else that is standing up right now. Fehst wanted it stated for the record that the last time Mr. Nawrocki stood up at a public meeting, there were several employees that were threatened by the way he handled himself, he also felt threatened, Nawrocki is creating a hostile work environment, and that he intends to seek legal action to see if Nawrocki can be thrown out of a meeting for this type of behavior. Economic Development Authority Meeting Minutes May 25, 2004 Page 2 of 7 Nawrocki stated Fehst is acting anything but a professional. Fehst stated he was protecting his employees. Nawrocla' asked, who he threaten. Fehst stated he threatened everyone in this room by his wild behavior. Nawrocki told him to get off his back, if you feel threatened, you don't know what threatened is. Murzyn stated the way we will handle this, when staff feels there is need for a special meeting, is that we will endeavor to get everybody there, but it will be problematic and sometimes it will come down to a decision whether we have the meeting or not. Streetar stated that would be Murzyn's decision to make, not his. Nawrocki stated the irony of this meeting is that we have no business having this meeting, were going to be asked to approve a contract to purchase something that this body does not have the money or commitment, you should check the laws to see ifa public body should be spending money that it doesn't have. Fehst asked Murzyn if we could just conduct business tonight and whatever has to be sorted out by the council, can be done later, as we do have an item on the agenda. CONSENT AGENDA Financial Report and Payment of Bills MOTION by Ericson, second by Wyckoff, to approve the financial report for the month of April 2004. All ayes. Motion Carried. Approval of Minutes MOTION by Ericson, second by Kelzenberg, to approve the minutes of April 20, 27 and May 10, 2004 with the amendment on page 8 of the April 20th minutes to read as follows: MOTION by Kelzenberg, second by Murzyn, to Approve the Predevelopment Agreement with Williams-Peterson Partnership, subject to review and approval by the City Attorney; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Upon Vote: Murzyn- Aye, Jindra- Aye, Wyckoff- Aye, Nawrocki- Aye, Ericson- Aye, Kelzenberg- Aye, Williams- abstained. Motion Carried. All ayes. Motion Carried. Nawrocki asked what are we going to do about the $368,649.89 budget deficit under the EDA summary. Streetar stated when the board approved the budget last year, authorizing a levy of $222,648, which was to be levied under the EDA levy and transferred into fund 201-46310 and that this report shows the money will pass through there. The $581,962 is the money the City Council loaned the EDA, which came in through this fund. This is an item staff is addressing with the finance department. Nawrocki stated the Parkview Villa North management services report had a negative variance of about $9,508. Streetar stated this deficit is due to the money we owed Crestview for their services through January, 2004. Bob Lindig, from Walker will be at the July HRA meeting to explain in detail the Parkview Villa budget. Nawrocla' asked staff to provide him with a January Economic Development Authority Meeting Minutes May 25, 2004 Page 3 of 7 report for Parkview Villa. Streetar stated staff will provide him with that information as soon as it is available. Streetar also explained to Nawrocki that in the past, payment vouchers came from Parkview Villa, were signed by Crest View staff, by him, by Fehst and Elrite prior to payments being processed. With Walker managing Parkview Villa, we provided them with cash to process and manage the budget, thus eliminating staff time. Bob Lindig with Walker will be providing the monthly financial reports from February through April and will be submitting them on a monthly basis from this point forward. Nawrocki stated this wasn't a good way to monitor the finances. Jindra stated that vendors use to complain about not getting their payments on time, which will be eliminated with this new process. ITEMS FOR CONSIDERATION Adopt Resolution 2004-06~ Approving the Purchase Agreement for acquisition of 3939 Central Avenue Streetar stated City Council identified 39th and Central as a redevelopment opportunity in January of 2002. Over the last year and a half, Burger King has been in contact with staff stating they are ready to sell. The purchase agreement before you is the same agreement used for the purchase of the NEI property, with the exception of the sellers name, closing would be 90 days instead of 60 days and the purchase price. The property is a little over an acre, was appraised by Burger King in 2001 which stated the land and building was worth $700 and the FFE was worth $200, it is a 2,500 square foot site, this year the EDA had it appraised with the land and building worth $807,000 and the FFE worth $125,000. Staff recommends the board consider acquiring the property for an amount of $620, 000. This amount is based on the appraisal done by the City, with the land worth $421,000, which he rounded to $420,000 or $9 square foot. The EDA wants the land, not the building. The appraisal shows that Burger King had declining growth sales in 2000 of about 3% and almost 7% in 2001. Then staff used the average percentage of declining sales of 5% carried forth for 2002, 2003, 2004, which brought the growth sales down to $614,000, plus or minus. According to the appraiser, this is a good approximation of the value of the property. We could offer another $200,000, which is a reasonable price, start low and let them negotiate up from there. If the EDA does decide to purchase the property, there probably won't be anything built on it for at least a year or two and the property will appreciate, thus the City can capture that value. Williams asked if there are any CDBG funds available for this, are the owners of Burger King okay with this purchase price and are they planning on relocating in town. Streetar stated the CDBG funds have been already spent for this year and that the owners are giving us the impression that they are ready to sell and have been looking at other sites along Central Avenue to build on. Wyckoff asked if Burger King would be willing to rent the building from us. Streetar stated he had not approached them with that idea, but it was a good idea and could check into it. Economic Development Authority Meeting Minutes May 25, 2004 Page 4 of 7 Nawrocki stated the agreement says the buyer will conduct a Phase 1 Environmental Assessment, what will that cost and is it necessary. Streetar stated it would be approximately 3 to 4 thousand and is recommended by Steve Bubul, Kennedy and Graven that anytime you buy commercial property this should be done to determine if there is any contamination on the property to protect the City from any legal liability. Nawrocki stated the City does not have funds available and where is the security clause in the agreement. Streetar stated it is on page 3, number 7, D in the agreement. Williams stated maybe we should low-ball the purchase price, ask them to take the equipment and building, and then they would come back to us with a counter offer. Maybe we should offer them $500,000 or $525,000. Williams asked if Nath is the owner and operator. Streetar stated they are. Ericson stated she fears that if we low-ball the purchase price, they could go out and sell the building to another fast food, which wouldn't clean up the area. Nawrocki stated it looks like he is the only one at the table that has had any experience with buying and selling any property. Fehst stated he doesn't know that. Nawrocki stated he does know and asked what did he say, you left off some words, I said, I think. Williams stated he did think it is necessary we buy this property right now, there is no hurry, we should let them have the building and equipment. Wyckoff asked what is the parking ramp fund that Elrite is suggesting using. Streetar stated the $723,000 comes from funds not used when the parking ramp was built. These funds would come in the form of a loan, which would leave about $30,000 to pay for our share of the operating expenses for one or two years. Fannie Mae has an American Community Fund, where we can borrow from them at a lower interest rate and they use the land as security that we could also apply for. Fehst asked if staff needs to set up a quick special meeting to vote on a purchase price, are the commissioners going to be able to meet. The majority of the commissioners said yes. Streetar stated staff needs direction from the board what to offer and a possible counter offer amount. Murzyn directed staff to offer $420,000, offer relocation services, with them taking the building and equipment and as a counter offer use $550,000. ADMINISTRATIVE REPORTS Industrial Park Redevelopment Schumacher stated Schafer-Richardson has obtained a purchase agreement with the foundry owners, leaving Grief Brothers and Buckles and Buckles as the only two properties left to purchase, the parkway design is getting close to completion, Kevin Hansen is working with Bonestro on the surface water management and Schafer-Richardson should have some site plans ready for review within the next two weeks. Economic Development Authority Meeting Minutes May 25, 2004 Page 5 of 7 Aldi's Grocery, Store Streetar stated the owners of Aldi 's, has entered into a purchase agreement with Nedegaard for the property on the corner of 47tn and Central where Arby's is currently located. Staff has not seen any plans at this time for the project site. Administration Issues Streetar stated Cher has done an excellent job at organizing the department so that we can bring down the property files and administer the Homesteading process. There are 250 to 300 applications that come in per year and Chef and Shelley will be taking on those duties and Randy is also doing a fantastic job on the Industrial site project. Introduction Streetar introduced Kim Green, who is a grad student at the Humphrey Institute, who is working this summer in the Community Development Department on the Truth in Housing program, along with learning how the department functions. Murzyn stated, if there wasn't anymore business to come before the board, he would call for a motion to adjourn. Nawrocki stated before they close, he would like to address the statement the manager made accusing him of threatening everyone at this table and would like to know if this was true. Ericson stated she felt very uncomfortable with the way this meeting has gone, he monopolizes 80°,'3 of the conversation, carry on a free flowing conversation with everyone and the minute someone else carries on a free flowing conversation, he makes a crack about following the rules and raising your hand to be noted. She was very disappointed in the way this board makes light of this action, was extremely offended, .finds it very frustrating that day after day she comes to try and do the best she can for this City, she appreciates his thoughts and concerns, but will not tolerate in which he talks to her, other members of council or members of staff. She was very close to walking out of the meeting as she finds this unacceptable, admitted that she too has made a joke or laughed at something he has said, just to break the ice, but felt this has got to stop, as it is no longer a joke, it is a threat and will not stand for it anymore. This is a public body and a public meeting and people should feel comfortable speaking their opinion. She would not speak for anyone else at the table, but stated he does not help provide a comfortable environment for people and requested the board come to an agreement on how they are going to act at a public meeting. Wyckoff stated she agreed with Ericson exactly, and heard him say to Carson a few weeks ago that his behavior and words was not appropriate at these meetings, yet he goes ahead and uses the same words and actions. She will stand behind Fehst if he needs to seek any legal action, and told Nawrocki to stop pointing his finger at her. Nawrocki stated that was tough luck. Ericson stated that is the attitude that is inappropriate, what about saying I'm sorry you feel that way Madam Mayor. It is just common courtesy. I don 't always agree with what you are saying, but she doesn't stand up and say you are wrong. It is important to provide a working environment for staff where they don't feel intimidated and afraid to speak their mind. Nawrocki Economic Development Authority Meeting Minutes May 25, 2004 Page 6 of 7 stated he has never heard anyone around here, afraid to speak there mind and hasn't threatened anybody. Ericson stated she felt threatened when she seen him stand up, lean over our City Manager and you say nobody in this room has the right to speak until l sit down, which is not your decision, it is our bodies decision, our Presidents decision. Nawrocki stated when somebody has the floor, you should not be interrupting, you like to criticize me for interrupting but don't say a word about Fehst interrupting. Ericson stated she has basically given up on trying to be the good guy, trying to raise her hand and felt intimidated by that comment, which wasn't appropriate. Nawrocki stated then she had a problem. Ericson stated she did, and felt that as a body we need to come to an agreement as to what is acceptable to all of us and stick to it. Nawrocki stated he hasn't threatened anyone, doesn't like to be lied to and when he senses that he is being lied to he is going to speak up, call it anything you want, say it is intimidating, no one has been physical threatened by me. Ericson stated this is the year 2004, which has laws that protect people from having an environment in which they feel uncomfortable. As a co- councilmember with him, she would take his position much more seriously, be more open if she feels he isn 't presenting it as an attack. She isn't telling him how to behave, as she respects what he has to say, his experience in the City, and that he often has very, very, good points to make. Suggested maybe they all needed to go back to raising our hands, and being announced by the President before speaking. Schumacher asked if there has ever been any kind of workplace training done in the City, that explains how to act in a government working environment. Nawrocki asked if this program is available for staff also. Schumacher stated it was. Fehst stated he wasn't aware of any training in the City. Jindra stated in the past, she has walked out of a meeting because of his actions and hates to see people who are friends go after each other like she has seen. Wyckoff stated she often feels that she cannot speak doesn't even want to express an option because she is afraid he will attack, call her stupid, say grow up, or something degrading in public. Sometimes it is just easier to let him go on, but it is intimidating, which is a threat and a form of a hostile environment. Fehst thanked everyone for speak on this issue, and stated that if one person feels intimidated, and he certainly does, he will not be badgered and will not be bullied. He did have a conversation with a couple of employees after the last worksession and there is no question in his mind that Nawrocki is putting the City in jeopardy for legal action. Nawrocki asked, who he talked to. Fehst stated he has sworn to secrecy. Nawrocki stated he is waiting for when this body insists that we get straight stories, good information, and that we get the pros and cons. Ericson stated that isn't what she was talking about. She was talking about the meeting conduct, the way in which we conduct ourselves. Fehst stated Nawrocki is stepping over the line and wanted it on record. ' Economic Development Authority Meeting Minutes May 25, 2004 Page 7 of 7 Ericson called the record of adjournment. ADJOURNMENT Motion by Williams, second by $indra, to adjourn the meeting at 8:43 p.m. All ayes. Motion Carried. Respectfully submitted, Cheryl Bakken Community Development Secretary H:~EDAminutes2004Wlay 25, 2004 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: August 17, 2004 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Robert Streetar BY: DATE: August 9, 2004 BACKGROUND: The bound Financial Report for the months of May, June and July 2004 draft Resolution 2004-07 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 and the Parkview Villa North and South financials (white). The reports cover the activity in the calendar (fiscal) year from January 1 through July 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 2004-07, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement and Payment of Bills for the months of May, June and July 2004. EDA ACTION: H:\EDAeonsent2004\May, June and July Fin Rep 2004 EDA RESOLUTION 2004-07 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR APRIL 2004 AND PAYMENT OF BILLS FOR THE MONTHS OF MAY, JUNE AND JULY 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 May, June and July 2004 and the list of bills for the months of May, June and July 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\EDA2004-07 TO: FROM: DATE: SUB J: EDA Commissioners Robert Streetar, Deputy Executive Director August 11,2004 Administrative Update The following are brief updates regarding redevelopment projects or other activities of the EDA. Kmart The final plat for the Kmart redevelopment will be presented to the City Council for approval at the August 23rd City Council meeting. As Commissioners will recall, the redevelopment includes 230 for-sale units, and a minimum of 10,000 sf. of commercial development. The final plat will include one 70-unit condominium building, three town homes, and one-half of the new road. Because the developer is still in the process of acquiring the County required right-of-way along 49th Avenue for a right-turn-lane, the remaining 140 condominium units, 17 town homes, and the remaining portion of the new road will be presented to the Council for final plat approval later this fall. The City may have to assist the developer in acquiring the additional right-of-way for the public road. ALDI, a new grocery chain in Minnesota, is planning to construct a new 15,000 sf. store where the current Arby's is located. Site plans are expected to come to the Planning Commission, and City Council in September. ALDI is expecting to open next spring. Staff is unaware of if Arby's has secured a new location. 39th and Central As Commissioners will recall, Burger King, owned by the Nath Companies in Bloomington, would like to sell there land and building to the City. The EDA has pursued this because the Burger King is within an area the EDA has identified for redevelopment. At the last EDA meeting, the EDA directed staff to negotiate the terms of a purchase and offer to acquire the property for between $450,000 and $550,000. In response to this offer Burger King indicated they wanted $1,200,000. The EDA's appraisal of the property indicated a price of $810,000 for land and building. Staff recommends the EDA direct staff to continue to negotiate to obtain the best terms possible. 37th and Stinson Staff is in ongoing discussions with Len Pratt regarding the redevelopment of the 37th and Stinson site. Commissioners may recall the Mr. Pratt is leading the redevelopment of the Apache site just across Stinson Boulevard in St. Anthony. Len Pratt is finalizing an option agreement with the owner of the Apache Theatre. 2005 Budget During the next week Commissioners will be contacted and invited to meet with Bob, one-on-one, to review the budget for 2005. ECONOMIC DEVELOPMENT AUTHORITY (EDA) DATE: August 13, 2004 TO: EDA Commissioners FROM: Randy Schumacher, Project Manager 40th & University Redevelopment The Development Agreement with Williams-Peterson Real Estate is moving ahead as planned with the exception of one issue, the voluntary sale of 322 40th Avenue has not be finalized. Owner Mike Sweat has since acquired a new business location on 36th and Central. He is holding firm on a sale price of $225,000, which is $25,000 higher than the value as determined by the City. In order to move ahead with the redevelopment project, Williams-Peterson Real Estate has agreed to pay the $25,000 difference. If the consensus of the EDA supports this concept, the EDA staff will move forward and craft a Development Agreement that allows the EDA to acquire 322 40th Avenue in the amount of $225,000. In addition, the agreement would require the developer to submit a Redevelopment proposal acceptable to the EDA and pay the additional $25,000 required by the seller. No closing on the property would take place until the above EDA/Developer approvals had been finalized. 0 .o 't-