HomeMy WebLinkAboutEDA AGN 09-21-04CITY 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, SEPTEMBER 21, 2004
CITY HALL, CONFERENCE ROOM 1
AGENDA
CALL TO ORDER/ROLL CALL
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.)
Ao
MOTION: Move to approve the consent agenda items as listed below:
1) Approve EDA Meeting Minutes for August 17~ 2004.
MOTION: Move to approve the minutes of the August 17, 2004 regular EDA
Meeting as presented.
2) Approve the Financial Report and Payment of Bills
MOTION: Move to approve Resolution 2004-08, a Resolution of the Columbia
Heights Economic Development Authority (EDA) approving the financial
statement and payment of bills for the month of August, 2004.
4. ITEMS FOR CONSIDERATION
A. Adopt Resolution 2004-06, Acquisition of Burger King Property
Motion: Move to Adopt Resolution 2004-06, a Resolution Approving the purchase of land
between the Columbia Heights Economic Development Authority and Nath Property
Corporation, L.P., A Minnesota Corporation; and furthermore, to authorize the President and
Executive Director to enter into an agreement for the same.
B. Adopt Resolution 2004-09, Approving an Inter-Fund Loan for Burger King
MOTION: Move to Adopt Resolution 2004-09, a Resolution Approving a loan for $800,000
fi.om the City of Columbia Heights to the Columbia Heights Economic Development Authority
for the purchase of a property located at 3939 Central Avenue with funding to come from
Funds 290 and 410, subject to the City Council's approval to provide the loan in the same
amount and under the same terms.
C. Asbestos Abatement Change Order for NEI Building
Motion: Move to Approve the change orders submitted by Southern Environmental
Technologies Inc. for.additional vermiculite removal in the amount of $11,300, additional
transite panels in the fan room in the amount of $5,071.50 and removal of sink, fire doors,
transite panels, and vermiculate in the amount of $3,555.00. These change orders shall be
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPORTUNITY EMPLOYER
funded by surplus, reallocated Community Development Block Grant dollars from project
number 327, the sale of 4607 Tyler Street program income.
D. Adopt Resolution 2004-10, Authorizing Condemnation by Quick Take for 322 40th
MOTION: Move to Adopt Resolution 2004-10, a Resolution Authorizing Condemnation by
quick take for the property located at 322 40th Avenue NE (PIN #35-30-24-31-0118) for
redevelopment purposes.
E. Approve Contract with Maxfield Research, Inc. to perform a Demand Analysis
MOTION: Move the Approve the Contract with Maxfield Research, Inc. to perform a Demand
Analysis for a community and recreational center in Columbia Heights; 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:\edaAgenda2004X9-21-2004
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
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
REGULAR MEETING MINUTES
AUGUST 17, 2004
CALL TO ORDER/ROLL CALL
President, Murzyn called the meeting to order at 7:16 p.m.
Present: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki,
and Bruce Kelzenberg
Absent: Tammera Ericson
PLEDGE OF ALLEGIANCE
CONSENT AGENDA
Approval of Minutes
Financial Report and Payment of Bills
Murzyn stated the Parkview Villa financial reports weren't ready when the packets were distributed, so
that is why they received them tonight..Cher Bakken explained Commissioners have before them the
Parkview Villa July report and reports from February through July 31st for both the North and South
buiMings, as requested by Commissioner Nawrocki at the last meeting and that Bob Lindig from Walker
EIderCare is present to answer any questions the board may have on the reports. There were no
questions from the board. President Murzyn thanked Lindigfor coming.
Motion by Williams, second by Kelzenberg, to adopt the consent agenda items as listed. All ayes.
Motion Carried.
ITEMS FOR CONSIDERATION- None
ADMINISTRATIVE REPORTS
Kmart
Streetar stated the final plat would be presented to the City Council on August 23rd. The total
redevelopment site includes 230for sale units, and a minimum of l O, O00 square feet of commercial
development. Nedegaard is in the process of acquiring the county required, right-of-way along 49th
Avenue for a right turn lane. The remaining 140 condominiums, 17 town homes, and the remaining
portion of the new road will be presented to City Councilfor final plat approval later this fall. Nedegaard
is working with Walter Scott who is representing the landowner for the property at the corner of 49th and
Central were Savers is currently located and may need some assistance from the City if an agreement
cannot be reached as he needs 10 to 15 acres of the property for the access onto 49~n Avenue.
Nawrocki asked what if the access isn't approved, couM they keep on moving ahead with the plating of the
property and what amount will the City be responsible for. Streetar stated MNDOT and Anoka County
have already approved the access, the sewer and water can be installed and the 17 town homes can be
platted, but will not be built until the property has been acquired. The City has agreed to pay up to
$700, O00 for site clearance, which also includes a minimum of l O, O00 square feet of commercial
development. Fehst felt the agreement was very reasonable, as Nedegaard has to finish the entire project
before receiving any tax increment funding.
Williams asked why the TIF eligibility is lower for the Kmart site than the Industrial Park project.
Streetar stated the more blighted the pr°Perty is the more TIF you receive, or the more clean up necessary
to the site the more funding you are eligible for. Schumacher stated the City is receiving 75% assistance
from the State for the Industrial Park.
Streetar stated Lou Welle owner of Welle Auto stated he needs $1 to 1 ~ million for his property, which
will be negotiated with Nedegaard as part of his agreement with the City.
Wyckoff asked if Savers has found a place to relocate in Columbia Heights. Streetar stated they found a
location outside of the City.
Economic Development Authority Meeting Minutes
August 17, 2004
Page 2 of 3
Aldi's
Streetar stated Aldi's is planning to buiM a 15,000 square foot grocery store on the Arby's restaurant site,
and will be bringing the plan before the Planning & Zoning Commission on September 8th. MNDOT
required that 1) the building be placed to the north a little bit; and 2)from Central Avenue the access be
changed to a right turn in and right turn out. A focus grOup of l2O people said they wanted to see
restaurants, a drug store and a grocery store within walking distance, which the Grand Central Lofts will
provide.
Wyckoff stated the management at Arby's said they will be closing on August 23rd and asked where is the
nearest Aldi's is. Fehst stated there is one in Champlin on Hwy 169.
39th & Central
Streetar stated at the last EDA meeting staff was directed to offer the Nath Companies, owners of Burger
King $450,000 and a counter offer of $550, 000 to acquire the property for redevelopment. At
negotiations, Nath stated they wanted $1.2 million. The EDA's appraisal indicated the property was
worth $810,000 or $9/square foot for the land and building. Last week Patti from Nath called with a
purchase price of $800, 000, with them paying for the demolition and relocation fees and stated they would
be closing the restaurant on September 9th. Streetar suggested offering $6 to $800,000 if they demolish
the building and pay relocation fees and asked for direction from the board.
Murzyn stated he would suggest buying Burger King, sell the NEI property, and take the money from the
NEI building to build a gym somewhere. Williams stated he liked that idea.
Fehst stated he would like to see the gym built at the High School, but his main concern is who would run
it, it shouM be contracted out, if the City builds it, somebody will have to pay to use it, this would also free
up the NEI site to be sold for redevelopment with possibly some of the things like the Library and City
offices the Mayor would like to see there and we wouldn't be using up valuable property.
Streetar stated Frank Dunbar had an idea were half of the property had some kind of public use and on
top there was moderate income senior housing and the other half wouM be sold for private residential
housing development for $600,000. The City could put a recreational facility and a library on one part of
the NEI site and let the rest of the property be sold for private development and use that money to
purchase Burger King.
Murzyn asked what is wrong with the west side of Huset Park where there is a run down tennis COurt,
rental property and an unused wave pool. Couldn't that property be used to build a recreational facility
and sell NEI. Fehst stated that wouM be a possibility.
After some lengthy discussion staff was directed to offer Nath Companies $600,000, with a maximum of
$700, O00 for the property.
37th & Central
Streetar stated Starbucks is looking into the redevelopment site on the corner of 37th & Central. They are
negotiating to purchase the remaining property.
37th & Stinson
Streetar stated Len Pratt the developer of the Apache redevelopment project has been working with the
owner of the Apache Theatre as a potential redevelopment site.
Economic Development Authority Meeting Minutes
August 17, 2004
Page 3 of 3
40th & University
Schumacher asked Williams to step down from his commission for this discussion, as he is a partner of
Williams-Peterson. Williams agreed. Schumacher then stated the Development Agreement with Williams-
Peterson is moving ahead with the exception of the voluntary sale of 322 40th,(MGS). The owner, Mr.
Sweat has moved his business to 36th and Central, is currently renting out the unit and wants $225,000 for
the property, which is $25,000 higher than the value determined by the City. Williams-Peterson has
agreed to pay the $25,000 difference as part of their redevelopment proposal. If the consensus of the EDA
is to support this action, staff will go forward with setting up a Development Agreement that allows the
EDA to acquire 322 40tn Avenue in the amount of $225,000 and would require the developer to submit a
redevelopment proposal acceptable to the EDA and pay the additional $25,000 required by the seller.
Wyckoff requested staff notify residents around the area before the access to 40tn is shut off, as she has
heard from resident, doyce Lillitol that stated she is against the road closure.
Staff was directed to move forward with the purchase agreement for 322 40th in the amount of $225,000
and the Redevelopment Agreement with Williams-Peterson with the additional $25,000 stated in the
agreement, and bring them back to the EDA for approVal.
NEI
Schumacher stated there was some more asbestos found in the NEI building that was hidden behind door
panels, mudded pins, vermiculite in floor panels, transit panels, and 3 additional radiators for an
additional $26,000 in removal costs, which is available in our CDBG funds. Therefore, at no cost to the
City. Staff will come back with updates as things progress.
Wyckoff asked if we build a Community Center on the site would we have to pay back the CDBG funds.
Streetar stated we wouldn't. However, if it was sold for housing we would.
ADJOURNMENT
Motion by Williams, second by Jindra to adjourn the meeting at 8:50 p.m.
Respectfully submitted,
Cheryl Bakken
Community Development Secretary
H:~EDAminutes2004L~ugust 17, 2004
LLI
II
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: September 21, 2004
AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE
NO: DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Financial Report and Payment of Bills BY: Robert Streetar BY:
DATE: September 13, 2004
BACKGROUND:
'The bound Financial Report for the month of August 2004 draft Resolution 2004-08 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 August 31, 2004.
RECOMMENDATION:
Staffwill be available to answer specific questions. If the report is satisfactorily complete, we
recommend thc Board take affirmative action to receive the Financial Report and approve the payment
of bills.
RECOMMENDED MOTION:
Move to approve Resolution 2004-08, Resolution of thc Columbia Heights Economic Development
Authority (EDA) approving the Financial Statement and Payment of Bills for the month of August 2004.
EDA ACTION:
H:\gDAConsent2004\August Fin Rep 2004
EDA RESOLUTION 2004-08
RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT
AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR AUGUST
2004 AND PAYMENT OF BILLS FOR THE MONTH OF AUGUST 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 August 2004 and the list of bills for the
month of August 2004 are attached hereto and made a part of this resolution; and
WHEREAS, the EDA has examined the f'mancial 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:
NAY S:
President- Don Murzyn, Jr.
Attest by:
Cheryl Bakken, Assistant Secretary
H:LResolutions2004\EDA2004-08
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: SE,ptember 21,2004
AGENDA SECTION: Items for ORIGINATING DEPARTMENT EXECUTIVE
Consideration Community Development DIRECTOR
NO: 4-A APPROVAL
ITEM: Adopt Resolution 2004-06, Approving BY: Robert Streetar BY:
the Purchase Agreement for the acquisition DATE: September 7, 2004
of 3939 Central Avenue
BACKGROUND: In January 2002, the City Council identified ten areas for redevelopment.
The 39~ and Central Avenue redevelopment area, one of the ten areas, lies generally east of
Central Avenue, south of Gould Avenue, and north of 39th Avenue. The Burger King is one of
three parcels located in this area.
The Nath Property Corporation, L.P. ("Seller") has indicated they are willing to sell the property at
3939 Central Avenue to the Columbia Heights Economic Development Authority ("Buyer"). The
Burger King closed permanently on September 3, 2004. The property is approximately 1.09
acres, and includes the 2,581 square foot Burger King building. The Seller had the property
appraised in 2001, which indicated the property was worth $700,000, including land and building,
as well as $200,000 for the furniture, fixtures and equipment (fl&e), for a total value of $900,000.
The EDA had the property appraised in 2004. That appraisal indicated the property was worth
$807,000, which includes land and building, but not furniture, fixtures and equipment.
At the May 25 EDA meeting, Commissioners directed staff to negotiate an acquisition price
between $420,00 and $550,000. Subsequently, the Nath Corporation countered with $1,200,000.
After continued negotiation, the Seller has indicated they will sell for $800,000; this includes land
and building, as well as ff&e valued at $200,000, and relocation assistance valued at $100,000.
This makes the acquisition of the land and building $500,000.
According to Dan Wilson, a relocation specialist, Burger King is legally entitled to up to $200,000
for fi&e, as well as $100,000 for relocation, for an additional $300,000 in compensation, which
would result in a total acquisition cost of $1,100,000. Mr. Wilson recommends an $800,000
settlement because the $300,000 for ff&e, and relocation is included and results in a $300,000
savings for the EDA. See attached letter from Mr. Wilson.
Staff recommends the EDA approve a purchase agreement for $800,000 for the purchase of the
Burger King property. This includes all land, buildings, furniture, fixtures and equipment, as well
as all relocation assistance.
General Purchase Agreement Terms include:
· Purchase price $800,000
· Earnest moneyS20,000.
· Closing to within 90 days.
3.
Contingencies include:· Complete a phase 1 environmental review.
· Secure demolition and asbestos abatement estimates.
· Perform tax increment inspection - This has already been completed, and the property
qualifies as blighted under the tax increment statute.
· Secure financing from City Council
Funds to purchase the property will come to the EDA from the City in the form of a loan. The
funds will come from Fund 290 - Parking Ramp - $530,000 and Fund 410 -Sheffield - $270,000.
Once the property is purchased the building will be demolished as soon as possible. There are
approximately $40,000 of CDBG funds to demolish the building and/or remove any asbestos that
may be present, which is more than adequate. In addition, Bauer Construction estimates that the
salvage value of the Burger King is expected to be $1,000 to $5,000. These proceeds could also
be applied to help pay for demolition, and any asbestos abatement.
RECOMMENDATION: Staff recommends the EDA adopt Resolution 2004-06,'Approving the
purchase agreement, subject to final review and approval by legal council, regarding the purchase
of the Burger King property located at 3939 Central Avenue N.E.
RECOMMENDED MOTION: Move to Adopt Resolution 2004-06, a Resolution Approving the
purchase of land between the Columbia Heights Economic Development Authority and Nath
Property Corporation, L.P., A Minnesota Corporation; and furthermore, to authorize the President
and Executive Director to enter into an agreement for the same.
Attachments: Letter from relocation specialist Dan Wilson, and Purchase Agreement
EDA ACTION:
h:\consent Form2004~dopt Res.2004-06 Purchase Burger King
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2004-06
RESOLUTION APPROVING PURCHASE OF PROPERTY
BETWEEN THE COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY AND NATH COMPANIES,
INC., A MINNESOTA CORPORATION (SELLER)
WHEREAS, the City of Columbia Heights (the "City") and its Economic
Development Authority (the "Authority") have undertaken a program to promote the
development and redevelopment of land which is underutilized within the City, and in this
connection, the Authority administers Redevelopment Project No. 1 (the "Project")
pursuant to Minnesota Statutes, Sections 469.001 to 460.047 (the "HRA Act"); and
WHEREAS, the Authority Seeks to purchase for redevelopment the Burger King
property located at 3939 Central Avenue NE, Columbia Heights, and described in the
attached Exhibit A (the "Property"); and
WHEREAS, the Authority has proposed to acquire the Property from the Seller, and
in connection with that proposal the Authority has caused to be prepared a Purchase
Agreement between the Authority and Seller (the "Contract").
NOW, THEREFORE, be it resolved by the Board of Commissioners of the
Columbia Heights Economic Development Authority as follows:
1. The Authority finds that purchase of the Property from the Seller is in the
public interest because it will further the objectives of the redevelopment plans for the
Project.
2. The Authority approves the Contract in substantially the form on file in City
Hall. The President and Executive Director are authorized and directed to execute the
Contract, subject to modifications that do not change the substance of the transaction and
are approved by those officials, provided that execution of the Contract by those officials
will be conclusive evidence of their approval.
3. The Authority approves purchase of the Property from the Seller, subject to
satisfaction of all terms and conditions of the Contract, and authorizes and directs the
President and Executive Director to execute all documents necessary to carry out such
real estate transaction.
Approved by the Board of Commissioners of the Columbia Heights Economic
Development Authority this __ day of ,2004.
President- Don Murzyn, Jr.
Executive Director-Walter R. Fehst
MTN-248024vl
CL205-24
EXHIBIT A
Legal Description
THE S 180 FT OF THE N 330 FT OF BLK 4 WALTONS REARR- ANGEMENT OF LOTS
33 & 34 BLK 6 RESERVOIR HILLS EX THE E 165 FT THEREOF SUBJ TO EASE OF
REC
SJB128147
MN140-86
2
WILSON DEVELOPMENT SE . VICES
'Providing Acquisition and Relocation Ser~/ces'
August 20, 2004
MEMO TO:
FROM:
RE:
Bob Streetar, C . Develop. Director
Dan Wilson . I~/~.~v''
Burger King Relo3~tion Cost Estimate'& S~lement
I visited the Burger King property 2 times for the purpos
estimate. I undemtand that Burger King is contemplat
they have contacted the City/EDA for a voluntary sale.
seeking a global and final settlement. This is consistent
Smith-Porteus, the CFO with Nath Co. She indicated sh
sum buyout that coincides with the closing of the facilit
relocation estimates the total acquisition and relocation
...~lOf preparing a relocation cost
closing this facility and that
t sounds like Burger King is
~ith my conversation with Patty
~!was looking for a single lump
· Using <=urrent appraisals and
~ts would start at:
Land & Building $ 800,000
FFE Fixture $ 200,000
Relocation ltl ! _q.0_,.0_0~
Total $1,100,000
The pending closure of the facility gives the City/ED,~l ia real opportunity to realize
signifk?,ant cost savings. If Burger King wii~ settle for I~00,000, I would recommend
settlement because of the savings of up to $300,000111)y not paying for FF&E and
relocation. I would strongly urge you to have the purcha~le agreement reflect that this is
~unaldusiness .location sefflement, as .11 as the acqt[il~ition of the land, building and
510 Chestnut Street, Suite 200 m Chask4,[MN $5318
Office: (9!~2) 448-4630 ~ Fax: I952) 4{i~-4676
Email: wilsondevSl0~aol.co~t
PURCHASE AGREEMENT
THIS AGREEMENT, made and entered into this day, 2004,
by and between ("Seller") the Nath Property Corporation, L.P. and the City of Columbia
Heights Economic Development Authority (EDA), a political subdivision of the State of
Minnesota ("Buyer").
WITNESSETH:
1. Description of Land Sold. Seller, in consideration of the covenants and
agreements of Buyer hereinafter contained, hereby sells and agrees to convey unto the
Buyer, its successors and assigns, by warranty deed, accompanied by a Seller's
affidavit, upon the prompt and full performance by the Buyer of its part of this
Agreement, the real property, known as the Burger King Site, consisting of a parcel of
property containing approximately 1.09 acres, and a building of approximately 2,581
square feet, and all furniture, fixtures, and equipment, located at 3939 Central Avenue
NE, Columbia Heights, Minnesota and legally described in Exhibit A attached hereto
(the "Property");
2. Purchase Price. Buyer, in consideration of the covenants and
agreements of Seller, hereby agrees to pay to Seller as and for the purchase price of
the Property, Eight Hundred Thousand and no/Dollars ($800,000), subject to
adjustment as hereinafter provided, in the manner and at the times following, to wit:
$20,000.00
Earnest money, the receipt of which is hereby acknowledged by
Seller, but which shall be applied to the purchase price hereunder
and said $20,000.00 earnest money shall be non-refundable, all
except in the event of termination of this Agreement by Buyer
pursuant to paragraph(s) 7, 8, or 10 hereof; and
$780,000.00 Cash or immediately available funds at Closing.
3. Deed. It is agreed that the Warranty Deed executed and delivered by
Seller to Buyer at the Closing Date (accompanied by all customary affidavits and
certificates) shall be subject only to the following exceptions:
(a) Building, zoning and platting laws, ordinances and state and
federal regulations;
(b) Reservation of any minerals or mineral dghts to the State of
Minnesota;
(c) Utility and road easements of record that do not interfere materially
with the use or development of the Property by Buyer, as disclosed by visual
inspection of the easement on the Survey;
(d) The lien of current taxes not yet due and payable, if any;
MTN-240090vl 0
CL205-24
(e) The lien of special assessments of record and all levied
assessments;
Said Deed shall be accompanied by all required well disclosures.
4. Taxes and Special Assessments. Seller shall pay all real estate taxes,
interest, and penalties, and all installments of special assessments, relating to the
Property due and payable in 2004 and the years prior thereto. Provided that the
transaction contemPlated by this Agreement shall close, Buyer warrants that the
Property will be exempt from property taxes upon purchase pursuant to Minn. Stat.
{}272.02, subd, 39. Seller shall pay all special assessments pending or levied as of the
Closing Date. Buyer shall be responsible for all other assessments, levied after closing.
5. Buyer's Undertakin?. Buyer represents that it will undertake the following
activities at its option, and expense:
(a) Complete a current Phase I Environmental report prepared in
accordance with ASTM standards E-1527-000 covering the Property within sixty
(60) days after acceptance of this Agreement by Buyer and Seller. Seller will
provide soil tests, if available.
(b) Complete the process of securing quotations of the cost of
demolition of the building on the Property by firms or entities qualified to perform
such services, within sixty (60) days after acceptance of this Agreement by Buyer
and Seller.
(c) Complete the process of securing an asbestos removal estimate
for the building on the Property within sixty (60) days after acceptance of this
Agreement by Buyer and Seller.
(d) Complete the process of securing an engineering inspection and
report which documents to Buyer's satisfaction that the structures on the
Property are structurally substandard within the meaning of Minn. Stat. §
469.174, subd. 10, within sixty (60) days after acceptarlce of this Agreement by
Seller and Buyer.
6. Preliminary. Inspection by Buyer. Upon prior notice and coordination with
Seller, Buyer shall have the right, prior to the Closing Date, to enter upon the Property
for the purpose of taking soil tests, borings, making surveys and maps and performing
other preliminary investigative work, provided, however, that Buyer shall indemnify and
hold harmless Seller from any mechanic's liens, claims, injuries or other damages
arising out of such preliminary development work by Buyer, including, but not limited to,
any environmental liability resulting from Buyer's activities on the Property. Prior to the
Closing Date, Buyer shall not construct or cause the construction of any improvements
on the Property.
MTN-240090v10
CL205-24
7. Buyer's Conditions Precedent to Closiqg. The obligation of Buyer to close
on the purchase of the Property is subject to and contingent upon the satisfaction prior
to the Closing of the following conditions, any of which may be waived in whole or in
part by Buyer on or prior to the Closing Date:
(a) Buyer, at its option, shall have obtained soil tests, percolation tests,
and similar engineering reports that confirm to the Buyer the satisfactory
condition of the soils;
(b) Buyer shall have obtained assurances satisfactory to Buyer that
sewer and water utility services are available to the Property, including necessary
easements to provide sewer and water trunk mains to the Property;
(c) Buyer shall have obtained at its expense environmental inspection
reports and other items described in paragraph 5 of this Agreement, disclosing
the satisfactory condition of the Property to Buyer.
(d) Buyer shall have obtained financing for the purchase of the
Property from the City of Columbia Heights under terms mutually agreeable to
Buyer and the City.
In the event that Buyer is unable to satisfy any of the foregoing conditions by the
Closing Date, or any of the respective reports or tests permitted by paragraphs 5, 6 or 7
of this Agreement disclose a condition or conditions of the Property unsatisfactory to
Buyer, Buyer may, by written notice to Seller, either waive such conditions, or at Buyer's
option, terminate this Purchase Agreement, whereupon Seller shall refund all earnest
money paid by Buyer and neither party shall have any further liability hereunder,
provided that Buyer shall deliver an executed quit claim deed to the Property to Seller
and further provided that Buyer shall remain liable for matters arising out of Buyer's
activities pursuant to paragraph 6 above. Buyer agrees to diligently proceed to satisfy
the conditions of this paragraph.
8. Examination of Title,. Seller shall, within fifteen (15) days after the date
hereof, furnish Buyer a commitment for an Owner's Policy of Title Insurance
("Commitment") covering the Property, which shall include proper searches covering
bankruptcies, state and federal judgments and liens. Buyer shall be allowed thirty (30)
days after receipt of the Commitment for examination thereof and the making of any
objections thereto, said objections to be made in writing or deemed to be waived. The
Seller shall use its best efforts to make such title marketable within six (6) months from
its receipt of Buyer's written objection. Marketability of title shall be determined
according to Minnesota statues, Minnesota case law decisions, and the standards of
Minnesota title standards. Pending correction of title, the payments hereunder required
shall be postponed, but upon correction of title and within ten (10) days after written
notice, Buyer shall perform as provided in this Agreement. If said title is not marketable
and is not made so within six (6) months from the date of written objections thereto as
above provided, Buyer may either
MTN-240090vl 0
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(i) terminate this Purchase Agreement by giving written notice by
registered mail to Seller, in which event this Purchase Agreement shall become
null and void and neither party shall be liable for damages hereunder to the other
party and the earnest money shall be returned to Buyer following expiration of
120 days after the last work was performed on the Property; or
(ii) elect to accept title in its unmarketable condition by giving written
notice by registered mail to Seller, in which event the warranty deed to be
delivered at Closing Date shall except such objections.
9. ~,~. Buyer may at its option procure, at its sole expense, an ALTA
survey of the Property prepared by a registered land surveyor (the "Survey").
10. Default. If Seller, through no fault of Buyer, defaults in its obligations
hereunder in any manner, Buyer may, by notice upon Seller, (i) terminate this Purchase
Agreement, in which event all earnest money paid hereunder shall immediately be
delivered to Buyer, or (ii) avail itself of an action for specific performance. If Buyer shall
default in the performance of any of its obligations hereunder, then Seller shall be
entitled to terminate this Agreement upon 30 days written notice to Buyer, pursuant to
Minn. Stat. §559.21 and, upon such termination, Seller shall retain all earnest money
theretofore paid hereunder, as and for its liquidated damages and sole remedy for said
breach, and not as a penalty or forfeiture, actual damages being difficult or impossible
to measure, and no party hereto shall have any further claim against the other
hereunder. In such event, Buyer shall provide Seller with its quitclaim deed. Nothing
herein shall relieve Buyer of any obligation to indemnify or hold Seller harmless as
stated herein, including obligations of Buyer arising out of unsatisfied mechanic's liens
which Seller would have to pay because of work performed on the Property at the
request of Buyer.
11. Representations and Warranties by Seller. Seller represents and
warrants to Buyer that:
(a) There is no action, litigation, investigation, condemnation or
proceeding of any kind pending against Seller or the Property which could
adversely affect the Property, any portion thereof or title thereto. Seller shall give
Buyer prompt written notice if any such action, litigation, condemnation or
proceeding is threatened or commenced pdor to the Closing Date.
(b) To the best of Seller's knowledge, the Property has not been used
for the generation, transportation, storage, treatment, or disposal of any
hazardous waste, hazardous substance, pollutant, or contaminant, including
petroleum, as defined under federal, state or local law, except farm fertilizer used
in the ordinary course of farming.
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(c) If there is a well located on the Property, Seller will provide at
Closing a well disclosure. There are no underground storage tanks located on
the Property. To the best of Seller's knowledge, and except as disclosed in
Seller's Environmental Documents (a list of which are attached hereto as Exhibit
B), there is no septic system located on the Property.
(d) To the best of Seller's knowledge, there has been no dumping or
placement or burying of trash or construction debris in or on the Property.
Seller hereby agrees that each of the foregoing representations and warranties
shall survive closing hereunder and that the breach of any thereof shall constitute a
default, whether said breach occurs prior to or after Closing, entitling Buyer to exercise
any remedy provided to Buyer in this Agreement in the event of a default by Seller or
any other remedy allowed by law.
12. CJosJl3g_~. The Closing Date of this transaction shall take place no
later than ninety (90) days after acceptance of this Agreement by Seller and Buyer.
The Closing Date may be accelerated by mutual agreement of the parties if all
contingencies contained herein are satisfied prior to conclusion of the 90 day period. At
closing, Seller and Buyer shall deliver to one another the instruments specified herein.
Subject to the provisions of Paragraph 6 hereof, possession of the Property shall be
delivered to Buyer on the Closing Date. All expenses for the operation of the Property
shall be prorated between Buyer and Seller as of the Closing Date. Seller shall pay for
the preparation of the Commitment and any state deed tax payable in connection with
the recording of the deed. Buyer shall pay the premium for a title insurance policy if
Buyer elects to obtain such policy, and for the cost to record the deed. Each party will
pay its own attorneys' fees and shall split equally any closing fee charged by a title
insurance company to close this transaction.
13. b[o/Jc, e,s. All notices provided herein shall be given in person or be sent by
United States mail, either certified or registered, postage prepaid, to Seller at 900 East
79th Street, Bloomington, MN 55420 and to Buyer at 590 40th Avenue NE, Columbia
Heights, Minnesota 55421-3878. If notice is given by registered or certified mail,
deposit in the United States mail of said notice on or before the date such notice is to
be given shall be deemed timely and acceptable.
14. B. mk~, Seller and Buyer represent to each that neither has engaged a
real estate broker. Buyer shall not be responsible for the brokerage fee or commission
due any real estate broker retained by Seller. Seller shall defend, indemnify and hold
harmless the Buyer from any claims of any such broker.
15. .CDEdea~ati~. In the event that during the pendency of this Purchase
Agreement the Property or any portion thereof is condemned or taken by a public
authority, at Closing, Seller shall assign or deliver to Buyer all proceeds or
compensation for such condemnation or taking (and all rights thereto) and Seller shall
convey the Property to Buyer subject to such condemnation or taking without any
reduction in the Purchase Price.
MTN-240090v10
CL205-24
16. Waiver of Relocation Benefits. Seller represents that it has requested that
the Property be acquired by Buyer, that it is willing and eager to sell the Property to
Buyer, that it has voluntarily negotiated this Agreement with Buyer, that Buyer has
exercised all rights of due diligence with respect to eligibility for relocation benefits, and
that therefore, Seller specifically waives any claim to relocation benefits otherwise
permitted by state or federal law described in Minn. Stat. § 117.52. Seller further
warrants that at or prior to the Closing Date, Seller shall deliver to Buyer a waiver of
relocation benefits agreement meeting the requirements of Minn. Stat. § 117.521, subd.
1, in a form to be approved by Buyer in its sole discretion.
17. MJ~7,e~]aa.e,D~=. The terms, covenants, indemnities and conditions of this
Purchase Agreement shall be binding upon and inure to the benefit of the successors
and assigns of the respective parties hereto, and shall survive the Closing Date. Time
is of the essence of this Agreement.
IN WITNESS WHEREOF, the parties have hereunto set their hands the day and
year first above written.
SELLER:
Nath Companies, Inc.
BUYER:
City of Columbia Heights Economic
Development Authority
By.
By.
Date
Don Murzyn, Jr. Date
Its: President
By.
Walt Fehst
Its: Executive Director
Date
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EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
(on following pages)
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ECONOMIC DEVELOPMENT AUTHORITY LETTER
Meeting of: September 21,2004
AGENDA SECTION: Items for Consideration ORIGINATING DEPAR~'MEN~: CITY
NO: 4-B Community Development MANAGER'S
APPROVAL
ITEM: Adopt Resolution 2004-09, Approving BY: Robert Streetar BY:
an Inter-Fund Loan for Acquisition of Burger DATE: September 16, 2004
King
BACKGROUND: The EDA is requesting a loan from the City for $800,000 to purchase the
Burger King property. Funds for the loan would come from Parking Ramp fund 290 in the
amount of $530,000 and $270,000 from the Sheffield fund 410. The loan could be repaid from
proceeds from land sales, tax increments generated from a future project, or other sources
available to the EDA.
RECOMMENDATION: Staff recommends Adoption of Resolution 2004-09, Approving and
Specifying terms of an Inter-Fund Loan for Nath (Burger King) Property.
RECOMMENDED MOTION: Move to Adopt Resolution 2004-09, a Resolution Approving a
loan for $800,000 from the City of Columbia Heights to the Columbia Heights Economic
Development Authority for the purchase of a property located at 3939 Central Avenue with
funding to come from Funds 290 and 410, subject to the City Council's approval to provide the
loan in the same amount and under the same terms.
Attachments: Inter Fund Loan Resolution
COUNCIL ACTION:
H:\Consent 2004\EDA Res 2004-09 Inter-Fund Loan for BK
RESOLUTION 2004-09
RESOLUTION APPROVING AND SPECIFYING
TERMS OF INTER-FUND LOAN FOR NATH (BURGER KING) PROPERTY
RECITALS
A. The City of Columbia Heights. ("City") and its Economic Development Authority
("Authority") have undertaken a program to promote the development and redevelopment of land
which is underutilized within the City, and in this connection the Authority administers the
Redevelopment Project No. 1 ("Project") pursuant to Minnesota Statutes, Sections 469.001 to
469.047 and Sections 469.090 to 469.1081 (the "Act").
B. Pursuant to the Act, the Authority is authorized to acquire real property for development
and redevelopment by private enterprise or public use.
C. The Authority proposes to acquire the Burger King property located in the Project at
3939 Central Avenue NE (the "Property").
D. The Authority and City may establish a Tax Increment Financing District ("TIF
District") under Minnesota Statutes, Sections 469.174 to 469.176 (the "TIF Act") that includes the
Burger King Property in order to facilitate development of that property; or the Authority and City
may develop the property for various public uses.
E. Under Section 469.178, Subdivision 7 of the TIF Act, the City is authorized to advance
or loan money from any fund from which such advances may be legally made in order to finance
expenditures that are eligible to be paid with tax increments under the TIF Act.
F. The City has determined that it is in the best interests of the City to loan funds to the
EDA in order to acquire the Property, which loan may be reapaid from tax increments or other
sources, all as further described in this resolution.
G. By Resolution No. 2004-09 approved September 21, 2004 (the "Loan Resolution"), the
City Council authorized a loan from the City to the Authority in the maximum principal amount of
$800,000 (the "Loan").
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Columbia
Heights Economic Development Authority as follows:
1. The Authority accepts and approves the Loan from the City to the Authority as
described in the Loan Resolution, and approves all terms of the Loan Resolution.
2. The Board authorizes and directs staff to take all actions and execute any collateral
documents necessary to carry out the intent of this resolution.
Approved by the Board of Commissioners of the Columbia Heights Economic Development
Authority this 21 day of September, 2004.
Executive Director- Walter R. Fehst
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CL205-24
President- Don Murzyn, Jr.
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting oT ~eI ~temDer -,'-i, ~'uu~
AGENDA SECTION: Items for Consideration ORIGINATING DEPARTMENT: EXECUTIVE
NO: 4-E Community Development DIRECTOR
APPROVAL
ITEM: Approve Contract with Maxfield BY: Robert Streetar BY:
Research, Inc. to perform a Demand Analysis DATE: September 9, 2004
BACKGROUND: The City Council, as well as the School District and residents of Columbia
Heights, have discussed the construction of a recreational facility for the last few months.
There has been considerable discussion regarding the types of amenities, speCifically the
number of gymnasiums that ought to be provided. Determining demand is important because it
determines the capital costs and operating costs, as well as anticipated revenues.
To assist the City Council in determining building program options, Maxfield Research, Inc. is
proposing to perform a demand analysis. Please see attached proposal. This analysis will
determine the primary and secondary draw areas, the household composition, and income
within the draw areas through 2015, as well provide an analysis of competing facilities. The
outcome will be an approximation of the amenities that are most in demand at prices that are
most appropriate. To complement the work of Maxfield Research Inc., City staff will work with
community stakeholders, the School District, and interested residents to better define local
needs. The analysis, as well as stakeholder, input will determine building options. It is
anticipated that the results of the analysis along with possible building options will be presented
to the City Council at work session in December.
This analysis is expected to take 45 days, beginning around October 15 and ending December
1. The analysis will cost $7,000. The Sports Boosters have agreed to provide $5,000, with the
City paying the remaining $2,000 from Fund 881 Contributed Projects- Recreation Fund. The
School District, at their meeting Tuesday, September 21, will consider providing $1,000 towards
the cost of the analysis, which would reduce the City's contribution to $1,000.
RECOMMENDATION: Staff recommends enter into a contract with Maxfield Research, Inc. to
perform the demand analysis as described in the attached proposal for $7,000.
RECOMMENDED MOTION: Move the Approve the Contract with Maxfield Research, Inc. to
perform a Demand Analysis for a community and recreational center in Columbia Heights; and
furthermore, to authorize the President and Executive Director to enter into an agreement for the
same.
Attachments: Maxfield Research, Inc. Recreation Center Demand Analysis
EDA ACTION:
l:\consent Form2004\EDA Demand Analysis Rec. Ctr
September 7, 2004
Mr. Robert Streetar
Community Development Director
City of Columbia Heights
590 40~ Avenue NE
Columbia Heights, MN 55421
Dear Mr. Streetar:
The attached proposal outlines a specific work program and costs to complete a market demand analysis
for a community and recreation center in Columbia Heights, Minnesota. As we understand, the proposed
facility would combine social, recreational and public facilities under one roof. Fees would be charged to
utilize recreational equipment/facilities, rental of meeting room space, among other items. We understand
that individual components being considered include multiple gymnasiums, aerobics/workout area, and
meeting rooms and that you want to assess the potential usage of the facility from various user groups to
assess total demand and potential revenues that may be generated.
Our work program includes: definition of an appropriate draw area for the facility (consumer users versus
institutional users), quantify number, type and age of households and household composition (i.e.
households living alone, households with own children under 18, household size), and survey existing
competitive facilities in the area including information on size (square feet), features and amenities, fees,
user profile (including proportion of institutional usage), number of meeting rooms (if applicable). We
will also identify any pending developments that may compete with the proposed facility. Demand
calculations will estimate the potential demand that would be generated from draw area consumer
households; demand from institutional users would be derived with assistance from the City in identifying
the number and type of institutional users that would use the facility; recommendations will include
utilization estimates and estimates usage fees for the facilities.
The assignment would be completed for an all-inclusive fee of $7,000.00. We would be able to deliver a
draf~ report to the City within 45 days of date of authorization to proceed to deliver a dra~ report to the
City.
We would be pleased to assist you with this analysis.
Sincerely;,
MAXFIELD RESEARCH INC.
Mary C. Bujold
President
615 1~ Avenue NE, Minneapolis, MN 55413
(612) 338-0012 fax (612) 904-7979
www.maxfieldresearch.com
September 7, 2004
Mr. Robert Streetar
Community Development Director
City of Columbia Heights
590 40t~ Avenue NE
Columbia Heights, MN 55421
PROPOSAL/CONTRACT FOR PROFESSIONAL SERVICES
Maxfield Research Inc. proposes to provide research and consulting services to the City of
Columbia Heights (the Client) to conduct a market demand analysis for a proposed community
center (recreational facility) in the City of Columbia Heights, Minnesota. The analysis will
address the potential utilization, fees, and amenities for the facility in order to optimize usage.
SCOPE OF SERVICES
Ao
Demographic Analysis
1. Identification of a primary draw area.
2. Identification of a secondary draw area.
3. Analyze primary and secondary draw area growth trends through 2015 including:
a. population
b. households
c. employment
Analyze draw area population and household characteristics through 2015
including:
a. age distribution
b. household type
c. household size
d. income distribution
Summarize demographic trends as they relate to the potential demand for
community and recreational facilities in the draw area and specifically in
', Columbia Heights.
Bo
Competitive Market Situation Analysis
1. Inventory public and private recreational facilities in the primary market area.
Provide information on:
a. size of facility (square feet)
b. features and amenities
c. ancillary facilities (restaurants, refreshments, retail shop)
d. customer profile
e. fees
f. utilization rates (if available)
615 ia Avenue NE, Minneapolis, MN 55413
(612) 338-0012 fax(612) 904-7979
www. maxfieldreseareh.com
Mr. Robert Streetar
City of Columbia Heights
September 7, 2004
Page 2
3.
4.
5.
g. number of users
h. market share
Identify amenities in high demand and those in low demand.
Identify needs currently not being served.
Identify any new trends that would require new types of equipment/facilities.
Identify current and future construction of public and private recreational facilities
or expansions of existing facilities. Specify amenities to be included.
Ba~ed on market area demographic profile and existing facilities, identify and
rank amenities according to most/least desired.
Identify best and worst practices among competitive facilities, both public and
private; identify successful partnerships or conversely, identify features and
amenities that are substantially underutilized.
Demand Calculations and Recommendations
1. Based on demographic profile, calculate potential demand from consumer user
groups.
2. Combine consumer user groups with information gathered from City input on
institutional or other public group usage.
3. Develop potential user pool and determine potential usage of various facility
amenities.
4. Identify appropriate fee charges for various types of user groups and usage of
various facilities.
Meetings and Report Preparation
1. Report Preparation.
2. One internal research review meeting.
3. One meeting with city staff to review&aft report.
Total Cost for Market Demand Analysis
COST OF SERVICES
$7.000.00
The above Scope of Services will be completed for Seven Thousand Dollars ($7,000.00),
including' all out-of-pocket expenses and five copies of the final repOrt with payment as follows:
a) the balance of the contract amount due in installments at Maxfield Research Inc.'s discretion.
An executed copy of this agreement will be required prior to Maxfield Research Inc. beginning
work on this analysis.
Any meeting time requested by the Client beyond that outlined in the above Scope of Services
will be billed in addition at our standard hourly rates for stafftime which range from $55.00 to
$150.00 per hour.
615 1~t Avenue NE, Minneapolis, MN 55413
(612) 3384)012 fax (612) 904-7979
www. maxfieldresearch.corn
Mr. Robert Streetar
City of' Columbia Heights
September 7, 2004
Page 3
WORK PRODUCT
The Market Demand Analysis will be Completed in bound report format.
COMPLETION TIME
The Market Demand Analysis will be completed within 45 days of receipt of an executed
contract and initial payment in the offices of Maxfield Research Inc., unless delayed by
unexpected emergencies, fomes beyond the control of one or both parties or by written
agreement of the parties.
PAYMENT
All invoices are payable to Maxfield Research Inc. within fifteen (15) days of receipt of an
invoice showing the work completed and the direct costs for expenses. A finance charge of one
and one-half percent (1.5%) per month will be added to the unpaid balance of each invoice not
paid within thirty (30) days.
DISCLAIMER
The objective of this research assignment is to gather and analyze as many market components
as is reasonable within the time limits and projected staff hours set forth in this agreement.
We assume no responsibility for matters legal in character. The property/land is assumed to be
free and clear of any indebtedness, liens or encumbrances; and good and marketable title and
competent management are assumed, unless otherwise stated.
If building plans or site plans are included in the report, they are to be considered only
approximate and are submitted to assist the reader in Visualizing the property. We assume no
responsibility for the accuracy of any building or site plans.
Certain information and statistics contained in the report, which are the basis for conclusions in
the report, will be fumished by other independent sources. While we believe this information is
reliable, it has not been independently verified by us and we assume no responsibility for its
accuracy.
The conclusions in the report are based on our best judgments as market research consultants.
Maxfield Research Inc. disclaims any express or implied warranty of assurance of representation
that the projections or conclusions will be realized as stated. The result of the proposed project
may be achieved, but also may vary due to changing market conditions, characteristic of the real
615 1~t Avenue NE, Minneapolis, MN 55413
(612) 338-0012 fax (612) 904-7979
www. rnaxfieldresearch.com
Mr. Robert Streetar
City of Columbia Heights
September 7, 2004
Page 4
estate industry, changes in facts that were the basis of conclusions in this report, or other
unforeseerr circumstances.
In the event payment is not received on a timely basis, Maxfield Research Inc. shall be entitled to
a lien against the subject property.
This agreement will be construed according to the laws of the State of Minnesota.
TERMINATION
This agreement may be terminated upon written notification of either party to the other. In the
event of termination, the Client will pay Maxfield Research Inc. for staff hours performed at the
firm's normal hourly rates, plus all expenses incurred through the date of termination.
The costs outlined in the Scope of Services shall remain in effect for a period of 90 days from the
date listed at the top of this contract.
If this proposal meets with your approval, please sign and return one copy to the offices of '
Maxfield Research Inc.
Agreed to this day of 2004.
MAXFIELD RESEARCH INC.
Mary C. Bujold
President
CITY OF COLUMBIA HEIGHTS
Robert Streetar
Community Development Director
Don Murzyn, Jr.- President
Walter R. Fehst- Executive Director
615 1~t Avenue NE, Minneapolis, MN 55413
(612) 338-0012 fax (612) 904-7979
www.maxfieldresearch.com
Columbia Hei hts Athletic Boosters
EIGHT K \
RfHLETI ' 530 Mill Street N, E, Columbia Hel hfs MN 5542~
Minutes
~mbership Monthly Meeting
Wednesday September 15, 2004
1. MEETING CALLED TO ORDER at 7:08 p.m. by Gary Mayer.
Acknowledgements, thank you notes, signup sheets for the coming meat
raffles and the attendance sheet were passed around.
2. SECRETARY'S REPORT: Kay Mayer.
Motion by Larry Magel, 2nd by Jon Foss, to accept and approve the
minutes of the previous meeting and enter into the Minutes Ledger.
Motion Carried: all Ayes.
3. TREASURER'S REPORT: Aurora Johnston, reported a balance of $18,954.64
and the account was balanced and reconciled on August 31TM, to the
Northeast Bank Statement.
Motion by Nancy Snell, 2nd.by Ron Worden, to accept and approve
the Treasurer's report. Motion Carried, Ail Ayes.
4. CHARITABLE GAMBLING REPORT: Jerry Foss
Bank balance in our gaming account was: $81,881.45 as of
August 31st, 2004, when the account was balanced and reconciled
to the Northeast Bank Statement. Normal and allowable expenses for the
month of August, 2004 were $16,195.12. Lawful Purpose donations were:
$5,040.00. Net profit for the month of August, 2004 was $4,128.90.
Necessary expenses for the month of October, 2004 were pre-approved by
The members. This report shall be entered into the Minutes Ledger as
Required by law. Motion by Jeri Cole, 2nd by Pat Harding, to accept and
approve the Manager's report. Motion Carried: all ayes
5 FINANCE COMMITTEE REPORT: Gary Mayer, (for Pat Parker)
There were 10 requests for donations this month, see attached report:
6. Health & Welfare Report:Kay Mayer for Bob Ruettimann
Card set to Wendy Weaver after she fell at home and broke her arm.
Sandy'Kissel is scheduled for surgery on Sept 20th, she will be in our
thoughts and prayers.
7. ELECTION OF OFFICERS Tonite:
Results.of the election are:
Chad Lewandowski
Kay Mayer
Steve Gulczinski
Jerry Foss
Vice-President
Secretary
Director
Director
8' An error was made on the minutes of the July 2004 meeting:
The Board had recommended 'up to $5,000.00 for the auditors report.
· (Page 2)
Motion by Larry M agel, 2nd by Joe Lewandowski to amend the minutes for
July to approve the request. Motion carried, all ayes.
9. BOOSTER CORNER:
a. Terry. R eyes wished to acknowledge that Les Wilsey's son, Jason,
is the starting quarterback at St. Oiaf College. We all wished him
Good Luck.
b. There is a sign up sheet to help with the supper before the Homecomming
Game, which is also induction night for Hall of Fame; please lend a
hand and show support for this event. The Boosters are sponsoring "The
Hall Of Fame" celebration.
c. It was discussed that the various organizations at the High School
are encouraged to earn money by volunteering to work meat raffles; help
will be provided by "experienced meat raffle volunteers" for the first
two (2) raffles that a club works! The chance to earn extra money is
available to those willing to work for the money! This information will
be shared at the High School with the various coaches and club leaders
by ~att Schoen, Principal and Natt Townsend, Activities Director and
Football Head Coach who are in attendance at tonight's meeting!
d. Thank You's were given to our out going officers:
Les Wilsey for his two years on the Board of Directors .... You did a GREAT
JOB LES, Thank you! We still hope too see you each month Les!
Bob Prois for his 13 years of service as Director,Treasurer,Vice
President,. President, and Chairman; these last three (3) offices were
each held twice by Bob!! Bob has PROMISED (?) that he will be available
for his expertise on money matters!! WE WILL REMEMBER. THAT BOB!
Seriously, we thank you from the bottom of our hearts for your faithful
service that you have given our organization these past 13 years! We
know that this past couple years have been a challenge never the less
you did not miss a Board of Directors Meeting this past year!
e. Thank You's were given by Kay for the meat raffle helpers at the V.F.W.
f. Jerry is in desperate need of help for meat raffles on Tuesday evenings
at Star Central.
10. Meeting adjourned at 8:10 p.m.
Respectfully submitted,
Kay Mayer, Secretary
Col,,m~ia Heights Athletic Bo~ters Club, Inc.
Attachment to the minutes of the membership meeting of:
Wednesday, September 15th, 2004
mmmmmmmmmmmmmmmmmmmmmmm
Items recommended for approval by the Board of Directors
and brought before the g~neral membership.
Request for money earned at Friday Meat Raffle
to the Graduating Class of 2005.
Motion by Larry Magel, 2"~ by Sue Genosky to approve the request.
600.00
Request for money earned at Saturday Meat Raffle
to the Tri-City Hockey Association.
Motion by Terry Reyes, 2n~ by Jori Cola to approve the request.
370.00
3. Request to spend $1,000 to the fitness room fund. 1,000.00
Motion by Chuck Emme, 2~ by. Joe Lewandowski to approve the request.
Request to spend up to $5,000 to the City of Columbia Heights
for an analysis of the needs for community center
Motion by Steve Gulczinsld, 2n~ by Pat Harding to approve the request.
5,000.00
Request to spend $2,000 for the fireworks at the Homecoming
Game on Oct 8m.(Hall of Fame Night.)
Motion by Jori Cole, 2"~ by Sandy Bometun to approve the request.
2,000.00
6. Request to spend $500 Tri-City ,Girls Hockey. 500.00
Motion by Aurora Johnston, 2'"' by Sandy Bometun to approve the request.
Request to spend $2,000 Columbia Heights High School
for 2(Two) new backboards for the gym.
Motion by Nancy Snell, 2r~ by Sue Genosky to approve the request.
2,000.00
8. Request to spend $500 Columbia Heights Vollyball Assoc.
Motion by Sandy Bometun, 2~ by Pat Harding to approve the request.
500.00
9. Request to spend $500 Columbia Heights Soccor Club.
Motion by Sandy Bometun, 2n~ by Jori Cole to approve the request.
500.00
10. Request to spend up to $6,000 for the setup and building of
the pulltab booth at Tasty Pizza.
Motion by Jon Foss, 2nd by Larry Magel to approve the request.
6,000.00
Total
$18,470.00
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meetin8 of: September 21, 2004
AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE
NO: 4-C DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Asbestos Abatement Change Order for BY: Randy Schumacher BY:
NEI Building DATE: September 15, 2004
BACKGROUND: The Columbia Heights EDA awarded a contract to Southem Environmental
Technologies Inc. in the amount of $48,615 to complete asbestos abatement at the NEI Technical
College. To date the City has received three change orders from the contractor. Two of the change
orders are for the new asbestos material that was found during the abatement and were not identified on
the original surveys. The third change order is based upon actual square footage and removal of transit
panels from the fan room above the gymnasium. Based upon these three change orders, the following
summarizes the changes:
Change Order gl: Vermiculite removal
$11,300.00
Change Order #2: Transite panels in the fan room $ 5,071.50
Change Order #3: Sink, fire doors, transite panels,
Vermiculate
$ 3,555.00
A detailed explanation of these change orders can be found in a letter submitted by Ehlers and
Associates dated September 13, 2004.
RECOMMENDATION: Staff recommends the EDA board approve the above referenced change
orders for Southern Environmental Technologies Inc.
RECOMMENDED MOTION: Move to approve the change orders submitted by Southern
Environmental Technologies Inc. for additional vermiculite removal in the amount of $11,300,
additional transite panels in the fan room in the amount of $5,071.50 and removal of sink, fire doors,
transite panels, and vermiculate in the amount of $3,555.00. These change orders shall be funded by
surplus, reallocated Community Development Block Grant dollars from project number 327, the sale of
4607 Tyler Street program income.
Attachments
EDA ACTION:
h:\consent Form2004\EDA Asbestos Change Order
EHLERS
& ASSOCIATES INC
From:
Date:
Subject:
Columbia Heights Economic Development Authority
Stacie Kvilvang - Ehlers and Associates
September 13, 2004
NEI Technical College - Asbestos Abatement Change Orders
On April 20, 2004 the EDA awarded a contract to Southern Environmental Technologies, Inc.
in the amount of $48,615 to complete asbestos abatement at the above referenced property. To
date the City has received three (3) change order requests from the Contractor. Two (2) of the
change order requests are for new asbestos material that was found during abatement and
preparation of demolition and were not identified on the original surveys. The third change
order is based upon actual square footage and removal of transite panels from the fan room
above the gymnasium. Following is a more detailed description of the change order requests.
On July 13, 2004, Southern Environmental submitted a change order request for removal of
vermiculite that was found in the fan room above the gymnasium and mudded pins that were
located in the locker room ductwork. These items were not identified in the original asbestos
survey and were found when they were completing abatement in those areas. The cost
estimate for the abatement of the items was $16,315 and $1,635 respectively. On July 20,
2001, the City authorized the Contractor to abate only the mudded pins, but not the
vermiculite. The City was reviewing new regulations with regards to vermiculite and if it
needed to be abated prior to demolition. Based upon discussions with the MPCA, it was
determined that the regulations regarding vermiculite removal had not changed yet and it
would need to be abated. The Contractor submitted a new bid for this work on July 21, 2004
in the amount of $11,300. The reduced bid amount was due to the fact that they did not need
to remove the mechanical systems in order to abate the vermiculite as originally thought.
On August 3, 2004, the demolition contractor notified the City that they had uncovered some
additional transite panels and other items as they were dismantling the exterior concrete
balusters from the building. On August 5, 2004, the City had the asbestos testing company
sample the transite panels, a sink undercoating, electrical panels, paper on the back of cabinets
and some fire doors for asbestos. On August 8, 2004, the City received the test results that
indicated these items included asbestos containing material and needed to be abated. On
August l0th and 12th, 2004, the City received a bid estimate from the contractor to complete
this work for an amount not to exceed $3,555.
Finally, the third change order is based upon the actual square footage of transite panels that
were removed from the fan room above the gymnasium. At the time of bidding, the square
LEADERS IN PUBLIC FINANCE
3060 Centre Pointe Ddve
Roseville, MN 55113-1105
Phone: 651-697-8506 Fax: 651-697-8555
skvilvang@ehlers-inc.com
Columbia Heights Economic Development Authority
NEI Technical College - Asbestos Abatement Change Orders
September 13, 2004
Page 2
footage of the transite panels was estimated to be 1,300 sq/fi. As part of the bid specifications,
the contractor was required to provide an estimate for the removal of these panels on a per sq/fi
basis and the contract would be paid based upon actual square footage. Once the contractor
started dismantling the panels, it was discovered that there were two layers of panels in some
areas instead of one. Due to this, the square footage amount was increased from 1,300 to
2,770. Based upon their per sq/ft bid amount of $3.45 sq/fi, the amount was increased from
$4,485 to $9,556.50.
Based upon these three change order requests, following is a table summarizing the contract
changes and amount to date:
$48,615.00
Mudded Pins
$1,635.00
$50,250.00
$50,250.00 Vermiculite Removal $11,300.00 $61,550.00
$61,550.00 $5,071.50 $66,621.50
$71,451.5.50
$3,555.00
Transite panels in Fan Room
Sink, Fire Doors, Transite
Panels, Vermiculite
$70,176.50
Please contact me at 651-697-8506 with any questions.
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: September 21, 2004
AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE
NO: 4-D DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Adopt Resolution 2004-10, Authorizing BY: Randy Schumacher BY:
Condemnation by Quick Take for 322 40th Ave. DATE: September 17, 2004
BACKGROUND: All attempts to obtain a purchase agreement with the owner of 322 40th Avenue NE
(MGS Professional Maintenance Service) have failed.
This process has extended in excess of two years and the window for using of CDBG dollars
($170,000) to acquire will expire in three months.
Based on the issues outlined in Resolution 2004-10, City staff sees no other options in moving this
redevelopment project forward.
An important issue in this process is that the City may at any stage of the Condemnation proceedings
abandon such proceedings if a settlement can be reached.
RECOMMENDATION: Staff recommends adoption of Resolution 2004-10, authorizing
Condemnation by Quick Take of 322 40th Avenue NE.
RECOMMENDED MOTION: Move to waive the Reading of Resolution 2004-10, there being an
ample amount of copies available to the public.
RECOMMENDED MOTION: Move to Adopt Resolution 2004-10, a Resolution Authorizing
Condemnation by quick take for the property located at 322 40th Avenue NE (PIN #35-30-24-31-0118)
for redevelopment purposes.
Attachments
EDA ACTION:
h:\consent Form2004\EDA Res 2004-10 Condemnation 322 40th
RESOLUTION 2004-10
BEING A RESOLUTION AUTHORIZING CONDEMNATION BY QUICK TAKE FOR
THE PROPERTY LOCATED AT 322 40l'lt AVENUE N.E. (PIN # 35-30-24-31-0118) FOR
REDEVELOPMENT PURPOSES.
WHEREAS, in 2001 the City of Columbia Heights City Council designated the property at 322
40th Avenue (the Property) as part of a redevelopment area in the City's Comprehensive Plan;
and
WHEREAS, the Property is zoned General Business and the owner operates a business known
as MGS Professional Maintenance Service Inc.; and
WHEREAS, the Property is located in a redevelopment project area which contains properties
which are blighted; and
WHEREAS, the City has successfully negotiated and acquired four out of the five blighted
properties adjacent to the Property necessary to complete the redevelopment project scheduled in
this area; and
WHEREAS, City staff has been negotiating in good faith with the owner of the Property since
March of 2002; and
WHEREAS, the City has completed an appraisal of the Property and provided this information
to the property owner; and
WHEREAS, at the request of the property owner, the City requested the Anoka County
Assessors Office re-evaluate the Property in order to obtain the most current market value, thus
reflecting an additional 14% increase in value; and
WHEREAS, the City and its consultant have met with the property owner and advised him of
his non-residential relocation benefits and rights under the Federal Relocation Law; and
WHEREAS, the City applied for and received funding from the Anoka County Community
Development Block Grant Program to remove slum and blight relative to the Property for the
purpose of Economic Development opportunities; and
WHEREAS, the owner of the Property vacated the building during the month of February, 2004
and relocated his business in Minneapolis; and
WHEREAS, the City of Columbia Heights has an executed Preliminary Development
Agreement for the development of this property and wishes to move forward to redevelop the
area; and
WHEREAS, to date, the City of Columbia Heights has not received a written offer from the
owner of the Property for the purchase of his property in spite of its ongoing efforts to reach a
negotiated sale; and
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WHEREAS, the Economic Development Authority and City Council have adopted goals and
priorities for year 2004, of which this acquisition/redevelopment project has been given a high
priority; and
WHEREAS, the City under City Charter (Chapter 9), and Minnesota State Statutes is
empowered to acquire by purchase, gift, devise or condemnation, any property, which may be
needed by said City for public use or purpose.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA
HEIGHTS, MINNESOTA THAT:
1. The stated acquisition of the Property is in the public interest and for a public purpose.
The time requirement for funding this acquisition with Community Development Block
Grant dollars makes it necessary to obtain this property in a timely manner so as not to
jeopardize the funding source.
3. The acquisition is consistent with the City's redevelopment plan and the Property
qualifies under the definition of a blighted property.
4. That the City Attorney is directed to proceed with Condemnation, and where legally
appropriate, to acquire the Property by direct purchase, if feasible and practical.
5. The City may at any stage of the Condemnation proceedings, abandon such proceedings
of the property sought to be acquired.
Dated this
day of September, 2004.
Offered by:
Seconded by:
Roll Call:
Attest:
Cheryl Bakken, Acting Secretary
President- Don Murzyn, Jr.
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