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HomeMy WebLinkAboutEDA AGN 01-25-05CITY 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 Gary L. ?eterson Bruce Nawrocki Bobby Williams Tammera Ericson ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING TUESDAY, JANUARY 25, 2005, IMMEDIATELY FOLLOWING THE HRA 7PM MEETING PARKVIEW VILLA, COMMUNITY ROOM B, 965 40Tr~ AVENUE NE A GEND.4 CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE. ELECTION OF OFFICERS/OATH OF OFFICE President Vice President Treasurer Secretary MOTION: Move to nominate and appoint for Vice President; for Treasurer. for President; for Secretary; and 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 December 6 and 16th~ 2004. MOTION: Move to approve the minutes of the December 6 and 16th, 2004 EDA Meeting as presented. 2) Approve the Financial Report and Payment of Bills MOTION: Move to approve Resolution 2005-01 a Resolution of the Columbia Heights Economic DeVelopment Authority (EDA) approving the financial statement and payment of bills for the manth of December, 2004. ITEMS FOR CONSIDERATION A. Adopt Resolution 2005-027 A Resolution to Amend and Restate the Bylaws MOTION: Move to Adopt Resolution 2005-02, A Resolution to Amend and Restate the Bylaws of the Columbia Heights Economic Development Authority. B. Adopt Resolution 2005-03, Condemnation of Certain ProperW. for Redevelopment MOTION: Move to Adopt Resolution 2005-03, a Resolution Authorizing and Directing the Condemnation of Certain Property located at 3755 University Avenue, 3700 5th Street, 317 37th Avenue, 620 39th Avenue and 450 38th Avenue for Redevelopment Purposes. THE CItY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS Of DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER o C. Adopt Resolution 2005-04, Condemnation of Certain Proper .ty for Redevelopment MOTION: Adopt Resolution 2005-04, a Resolution Authorizing and Directing the Condemnation of Certain Property located at 3800, 3801 and 3901 5th Street for Redevelopment Purposes. D. Redevelopment Plan for Presentation ADMINISTRATIVE REPORTS ADJOURNMENT Walter R. Fehst, Executive Director H:\edaAgenda2005\l-25-2005 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. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: January 25, 2005 AGENDA SECTION: ORIGINATING EXECUTWE NO: ~ DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Election of Officers BY: Robert Streetar BY: DATE: January 10, 2005 BACKGROUND: The Bylaws of the Columbia Heights EDA specify in Section 1, Officers that the President, Vice-President, Secretary, and Treasurer be elected annually. We have attached a Transcript of Proceedings outlining the process for nomination of persons to the various offices. RECOMMENDATION: President, Treasurer. Move to cast a unanimous ballot nominating and appointing for President, for Secretary; for Vice for RECOMMENDED MOTION: for Secretary; for President; Move to cast a unanimous ballot nominating and appointing for Vice President; for Treasurer. Attachment EDA ACTION: H:\consent Form2005\EDA Election of Officers-EDA EDA ELECTION PROCEDURES · We will know have the Election of Officers. Nominations are know being taken for the office of (Office). (After a nomination is made) 1. has been nominated. 2. Are there any other nominations? 3. Are there any other nominations? 4. Are there any other nominations? 5. If NONE - All those in favor say aye. Opposed nay. 6. The chair declares elected as (Office). ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES DECEMBER 6, 2004 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 6:39 p.m. Present: Don Murzyn Jr., Patficia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE Nawrocki wanted it in the minutes that he objected to the call for the meeting, as he called back with alternative dates that worked for him, which were not considered and stated all public meetings should be held whenever all members can be present. ITEMS FOR CONSIDERATION RESOLUTION 2004-18~ CONSIDERATION OF A PLEDGE AGREEMENT FOR THE G.O. TAX INCREMENT FUNDING BONDS Streetar stated Mark Ruff, Ehlers & Associates was present to explain this document. Ruff stated the City Council approved the issuance of $1,985,000 in General Obligation Tax Increment Refunding Bonds, which will result in a substantial savings in the EDA's Tax Increment Funds, savings of approximately $244,000 in today's money, because they are Tax Increment Bonds and because the EDA controls the use of Tax Increment the Tax Increment Pledge Agreement must be signed. The EDA wouM formally pledge the Tax Increment to those bonds. The reason for the special .meeting is that the closing is to be held next Thursday, December 16th. Nawrocki asked if the EDA issued the original bonds and what is the project for. Ruff stated the original document states the HILt, with the EDA as the successor, and the project is to authorize the use of tax increment as the primary source to pay the bonds. Ruff stated the total amount of debt service was $3.185 million from 2006-2009, but with the proceeds of $765,000 left over to help pay down it takes the $920,000 down to $640,000 due to 1) cash to pay down and 2) lower interest rates for a total ora million dollar savings to the City. Nawrocki stated on page 3, #6 it says Hennepin County. Ruff stated it was a typographical error and would have it changed. Wyckoff asked when would they see the money and where will it go. Ruff stated in 2006 they would see the money and it would be up to the EDA to decide what they wanted to do with it. MOTION by Williams, second by Ericson to waive the reading of Resolution 2004-18, there being an ample amount of copies available to the public. All ayes. Motion Carried. MOTION by Williams, second by Jindra, to Adopt Resolution 2004-18, a Resolution Authorizing Execution of a Tax Increment Pledge Agreement with the City of Columbia Heights, Minnesota relating to the General Obligation Tax Increment Refunding Bonds, Series 2004A of Economic Development Authority Meeting Minutes December 6, 2004 Page 2 of 2 the City of Columbia Heights, Minnesota. All ayes. Motion Carried. Williams commended Streetar, Ruff and Fehst for putting this together for the board ADJOURNMENT President, Murzyn, Jr., adjoumed the meeting at 6:55 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H:~EDAminutes2004\ ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES DECEMBER 16, 2004 CALL TO ORDER/ROLL CALL Vice President, Patricia Jindra called the meeting to order at 7:09 p.m. Present: Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg Absent: Don Murzyn Jr. PLEDGE OF ALLEGIANCE CONSENT AGENDA Approval of Minutes Financial Report and Payment of Bills Move to approve Resolution 2004-18, Resolution Of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for November, 2004 and approving payment of bills for November, 2004. MOTION by Kelzenberg, second by Ericson, to adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION Approve Bids for Demolition of Burger King property, at 3939 Central Avenue Streetar stated staff went out for bids for the demolition of property at 3939 Central Avenue NE. Bids were received from Frattalone Companies at $28,616. 76, Minnesota Specialized at $29,025 and Veit and Company Inc at $29,361.10. Money for the demolition will come from the CDBG balance for the sale of 4607 Tyler Street. Staff recommends the board accept the bid from Frattalone Companies, as they were the lowest bidder. Nawrocki asked if the amount includes any asbestos or anything else they would run into. Streetar stated he doesn't anticipate any additional funds as each of the bidders went through the property prior to bidding. Nawrocki stated he was opposed to the motion to demolish the building as the board does not have any plans for the site and asked when the closing is scheduled for. Streetar stated the closing is set for Tuesday, December 21st. Wyckoff clsked what the story is on the playground equipment and has there been anymore discussions with Mady's or with the theater on redeveloping the site. Streetar stated as of today there was a misunderstanding with Burger King staff. As they promised the equipment to a school in Forest Lake, and did not ask Nath Companies to verify it was okay. At this point, staff and the Police Department got involved to stop them from removing the equipment, as staff has a list of people that are interested in purchasing the equipment and it was in the Purchase Agreement to obtain the building, fixtures and equipment along with the property acquisition. He has not talked to anyone at Mady 's, but said he thinks that the developer working for the theater would possibly be ready to present some ideas at the January meeting. Economic Development Authority Meeting Minutes December 16, 2004 Page 2 of 2 MOTION by Wyckoff, second by Kelzenberg, to accept the bids and award the contract for the Demolition of Burger King to Frattalone Companies, Inc. in an mount not to exceed $28,616.76. Upon Vote: Jindra- aye, Nawrocki- nay, Ericson- aye, Kelzenberg- aye, Wyckoff- aye, Williams- nay. Motion Carried. ADMINISTRATIVE REPORTS 40th & University Proper~ Streetar stated Schumacher met with Mr. Peterson, which stated he was formally backing out of the agreement due to possible perception ora Conflict of Interest with the development project and that Channel 6 Television is still interested in locating at that site and wants to know if the board would be supportive of that type of use. The closing for the property at 322 40th Avenue (MGS building) is scheduled for Monday, December 20th. Nawrocki stated Mr. and Mrs. Shellito are concerned about snow plowing the alley and access to get her trailer backed through the alley for winter storage. Mr. Gondek is concerned about getting semi-trucks through the alley to unload at his business, Castle Distributing. Streetar stated the project plans, when we get a developer interested in the site, wouM have to submit the idea to the EDA for approval, then it would go the P&Z Commission, which would notify residents within 350fi of the pubHc hearing and then it would go before engineering, fire department, city planner and the building official for approvals. Staff could make sure that Mr. Gondek and Mr and Mrs Shellito are informed at that time. ADJOURNMENT MOTION by Kelzenberg, second by Ericson, to adjourn the meeting at 7:35 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H:~EDAminutes2004~December 16, 2004 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: January 25, 2005 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTWE NO: DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Robert Streetar BY: DATE: January 11, 2005 BACKGROUND: The bound Financial Report for the month of December 2005 draft Resolution 2005-01 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 December 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 2005-01, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement and Payment of Bills for the month of December 2004. EDA ACTION: H:\EDAConsent2005\December Fin Rep 2004 EDA RESOLUTION 2005-01 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR DECEMBER 2004 AND PAYMENT OF BILLS FOR THE MONTH OF DECEMBER OF 2004. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the month of December of 2004 and the list of bills for the month of December of 2004 are attached hereto and made a part of this resolution; and WHEREAS, the EDA has examined the financial statement and the list of bills and finds them to be acceptable as to both form and accuracy. NOW,THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the attached financial statements and list of bills, which are attached hereto and made a part hereof, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the list of bills as presented in writing are approved for payment out of proper 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 ,2005. MOTION BY: SECONDED BY: AYES: NAYS: President Attest by: Cheryl Bakken, Assistant Secretary H:LResolutions2005~DA2005-01 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: January 25, 2005 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: 5-A DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Adopt Resolution 2005-02, a BY: Robert Streetar BY: Resolution to Amend and Restate the Bylaws DATE: January 13, 2005 BACKGROUND: Resolution 2005-02 will amend the EDA Bylaws, Article III-Meetings, to read: Monthly meetings will be held on the fourth Tuesday of the month at 7:00 pm at City Hall, with the exception of the months of January, April, July and October, where the meetings will be held in conjunction with the HRA at Parkview Villa and starting immediately following the HRA meeting. Staff has provided the attached revised document for board review and approval. RECOMMENDATION: Staff recommends Board adoption of Resolution 2005-02, amending and restating the Bylaws of the Columbia Heights Economic Development Authority (EDA). RECOMMENDED MOTION: Move to Adopt Resolution 2005-02, a Resolution to Amend and Restate the Bylaws of the Columbia Heights Economic Development Authority. Attachments EDA ACTION: h: consent Form2005\EDA Res.2005-02 EDA Bylaws RESOLUTION 2005-02 RESOLUTION TO AMEND AND RESTATE THE BY-LAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA. WHEREAS, the Bylaws of the Economic Development Authority (Authority), dated July 15, 2003, Article III-Meetings, the meetings will be held on the Fourth Tuesday of each month. WHEREAS, the proposed changes to the Bylaws have been reviewed by the Authority Commissioners and Staff and found satisfactory; THEREFORE BE IT RESOLVED that the revised Bylaws of the Economic Development Authority of Columbia Heights, Minnesota were adopted as written. Passed this day of ,2005. President Cheryl Bakken, Assistant Secretary HSResolutions2005XEDA2005 -02 Bylaws ECONOMIC DEVELOPMENT AUTHORITY 2005 MEETING SCHEDULE (DATES IF RESOLUTION AMENDING EDA BYLAWS IS ADOPTED.) TUESDAY, JANUARY 25, 2005 TUESDAY, FEBRUARY 22, 2005 TUESDAY, MARCH 22, 2005 TUESDAY, APRIL 26, 2005 TUESDAY, MAY 24, 2005 TUESDAY, JUNE 28, 2005 TUESDAY, JULY 26, 2005 TUESDAY, AUGUST 23, 2005 TUESDAY, SEPTEMBER 27, 2005 TUESDAY, OCTOBER 25, 2005 TUESDAY, NOVEMBER 22, 2005 TUESDAY, DECEMBER 27, 2005 AMENDED AND RESTATED BYLAWS OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ARTICLE I - THE AUTHORITY Section 1. NAME OF AUTHORITY. The name of the Authority is the "Columbia Heights Economic Development Authority." Section 2. OFFICE OF AUTHORITY. The offices of the Authority are at City Hall in the City of Columbia Heights, Minnesota. The Authority may hold its meetings at such other place or places as it designates by resolution. Section 3. COMMISSIONERS. The Authority is governed by seven commissioners appointed in the manner prescribed by City Council Resolution No. 96-01, as amended (Enabling Resolution) and Minnesota Statutes, Sections 469.090 to 469.1081 (Act). Section 4. OFFICIAL SEAL. The Authority shall have an official seal, which shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. ARTICLE II - OFFICERS Section 1. OFFICERS. The officers of the Authority are the President, the Vice-President, the Secretary, the Treasurer and the Assistant Treasurer. The President, Vice President, Treasurer and Secretary shall be elected annually. The Assistant Treasurer shall be elected at the organizational meeting of the Authority and shall serve until another person is elected by action of the Authority. No commissioner may serve as President and Vice President at the same time. The offices of Secretary and Assistant Treasurer need not be held by a commissioner. Section 2. PRESIDENT. The President presides at meetings of the Authority. Except as otherwise authorized by resolution of the Authority, the President signs contracts, deeds and other instruments made by the Authority. At each meeting, the President may submit recommendations and information conceming the business, affairs and policies of the Authority. At the annual meeting, the President must submit to the Authority a report summarizing the activities and programs of the Authority for the past year and containing the President's recommendations for Authority activities for the ensuing year. Section 3. VICE-PRESIDENT. The Vice-President performs the duties of the President in the absence or incapacity of the President; and in case of the disability or absence of the President, or in the case of a vacancy in the office of President, the Vice-President performs the duties of the President until a successor has been appointed and qualifies. Section 4. SECRETARY. The Secretary performs the duties of a secretary for the Authority. SJB98563 CL162-13 Section 5. TREASURER. The Treasurer has the duties giveniby the Act. Section 6. EXECUTIVE DIRECTOR. The Columbia Executive Director of the Authority and has general supervision business and affairs subject to the direction of the Authority and si instruments made by the Authority. The Executive Director is respc the projects and general affairs of Authority under the direction of the [eights City Manager is the ,ver the administration of its ns contracts, deeds and other nsible for the management of Commissioners. Section 7. OTHER ADMINISTRATWE OFFICERS. Subdivision 1. Assistant Secretary_. The Authority may designate an assistant to the Secretary to keep the records of the Authority, record the meetings of the Authority in a journal of proceedings to b~ kept for that purpose and to perform the duties of secretary under the direction of the Secretary. ~he assistant must keep in safe custody the seal of the Authority and may affix the seal to contracts ~md instruments authorized by the Authority. Subd. 2. Assistant Treasurer. The Assistant Treasurer of the P~uthority has custody of funds of the Authority. The Assistant Treasurer must deposit the funds in [he name of the Authority in a bank or banks selected by the Authority. The Executive Director and the Assistant Treasurer must sign orders and checks for the payment of money and pay out and disburse such monies under the direction of the Authority. Except as otherwise authorized by resolt~tion of the Authority, orders and checks must also be countersigned by the President. The Assistafit Treasurer must keep regular books of accounts showing Authority receipts and expenditures and iender to the Authority, at the annual meeting (and when requested by the Authority), an account of the fmancial condition of the Authority. Subd. 3. Deputy Executive Director. The Columbia Heights Community Development Director is the Deputy Executive Director and performs such duties and services as specified by .the Executive Director, subject to direction of the Authority. In the absence or incapacity of the Executive Director, the Deputy Executive Director may sign contractS, deeds and other instruments made by the Authority. Section 8. COMBINING ADMINISTRATWE OFFICES. Administrative offices may be combined. Section 9. ADDITIONAL DUTIES. The officers of the Authority perform other duties and functions as may fi:om time to time be required by the Authority, these bylaws or the roles and regulations of the Authority. Section 10. VACANCIES. If the office of President, Vice-President, Treasurer, Assistant Treasurer or Secretary becomes vacant, pursuant to Minnesota Statutes 351.02 or by other provisions of law, the Authority must elect a successor at the next regular meeting or at a special meeting called for that purpose. The successor serves for the unexpired term of the office. SJB98563 CL162 - 13 2 ARTICLE III - MEETINGS Section 1. REGULAR MEETINGS. Monthly meetings will be held on the Fourth, Tuesday of the month at 7:00 p.m. at City Hall, with the exception of the months of January, April, July and October, where the meetings will be held in conjunction with the HRA at Parkview Villa and starting immediately following the HRA meeting. If that date is a legal holiday, in which case the meeting will be held on the next succeeding business day. In the event the date/time/meeting place of a particular meeting must be changed, the Executive Director may make such change deemed necessary by notifying all Commissioners of the revised meeting time and date in accordance with the procedures for a special meeting. Section 3. SPECIAL MEETINGS. Special meetings of the Board of Commissioners may be called by the President, two members of the Board of Commissioners, or the Executive Director for the purpose of transacting any business designated in the call. The call (including location of meeting) for a special meeting must be delivered to Commissioners at least two days before the meeting, and notice of the meeting must be posted in the Authority's offices at least three days before the meeting. At a special meeting, no business may be considered other than designated in the call, but if all the members of the Authority are present at a special meeting any business may be transacted at such special meeting by unanimous vote. Section 4. QUORUM. The powers of the Authority are vested in the commissioners in office fi:om time to time. Four commissioners constitute a quorum for the purpose of conducting business, but a smaller number may adjourn fi:om time to time until a quorum is present, and when a quorum is not present, a smaller number may adjoum the meeting. Section 5. ORDER OF BUSINESS. The following is the order of business at regular meetings of the Authority. 2. 3. 4. 5. 6. Roll call. Approval of minutes of the previous meeting. Management Report. Consent. All other items. Adjournment. Section 6. RESOLUTIONS: CONDUCT. Upon direction of the President, or the motion by two members of the Board of Commissioners, resolutions must be in writing and placed in the joumal of the proceedings of the Authority. The meeting will be conducted in accordance with Roberts Rules of Order, Revised. Section 7. MANNER OF VOTING. Voting on questions coming before the Authority must be entered in the minutes of the meeting. When a quorum is in attendance, action may be taken by the Authority upon a vote of the majority of the commissioners. SJB98563 CL162-13 ARTICLE IV - MISCELLANEOUS Section 1. FISCAL YEAR. The fiscal year of the Authority shall be the same as the City's fiscal year. Section 2. TREASURER'S BOND. The Treasurer shall give bond to the state conditioned for the faithful discharge of official duties. The bond must be approved as to form and surety by the Authority and filed with the Secretary and must be for twice the amount of money likely to be on hand at any one time as determined at least annually the Authority, provided, however, that the bond must not exceed $300,000. Section 3. REPORT TO CITY. The Authority shall annually, at a time ~tesignated by the City, make a report tot he City Council giving a detailed account of its activities and of its receipts and expenditures for the preceding calendar year. The Authority shall, at the City's request, make available all records necessary to conduct an audit of the Authority's finances. Section 4. BUDGET. The Authority shall annually send its budget to the City Council which budget includes a written estimate of the amount of money need by the Authority fi:om the City in order for the Authority to conduct business during the upcoming fiscal year. Section 5. SERVICES. The Authority may contract for services of consultants, agents and others as needed to perform its duties and to exercise its powers. The Authority may also use the services of the City Attomey or hire a general counsel, as determined by the Authority. The Authority may not hire temporary or permanent employees without prior approval of the City Council. Section 6. AMENDMENTS TO BYLAWS. The bylaws of the Authority may be amended only with the approval of at least four commissioners at a regular meeting or at a special meeting called for that purpose. Amended and Restated Bylaws Approved: ,2005. Cheryl Bakken, Assistant Secretary SJB98563 CL162-13 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: January 25, 2005 AGENDA SECTION: Items for Consideration ORIGINATING ' EXECU~WE NO: 5-B DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Adopt Resolution 2005-03, Authorizing and BY: Randy Schumacher BY: Directing the Condemnation of Certain Property located DATE: January 14, 2005 at 3755 University, 3700 5th Street, 317 37th Avenue, 620 39th Avenue and 450 38th Avenue for Redevelopment Purposes BACKGROUND: The Contract for Private Redevelopment between the Columbia Heights Economic Development Authority, the City of Columbia Heights and Huset Park Development Corporation (Schafer Richardson the Developer), requires the developer to voluntarily acquire each of the parcels in the redevelopment area. I have attached a copy of the developer's letter that summarizes their efforts over the last four months to voluntarily acquire property in the redevelopment area. Unfortunately, despite a good faith effort, they have been unable to acquire several of the necessary properties. Therefore, the developer is requesting that the EDA and the City proceed to acquire all such parcels by means of negotiations or through its powers of eminent domain. Staff is satisfied that the developer has met the intent and conditions of the development agreement and recommend support for Resolution 2005-03. In addition, I have attached the section of the Schafer Richardson Development Agreement that outlines the required acquisition procedure. It also details the process in which the developer is required to pay for the entire taking procedure. RECOMMENDATION: Staff recommends Adoption of Resolution 2005-03, Authorizing and Directing the Condemnation of Certain Property for Redevelopment. RECOMMENDED MOTION: Adopt Resolution 2005-03, a Resolution Authorizing and Directing the Condemnation of Certain Property located at 3755 University Avenue, 3700 5th Street, 317 37th Avenue, 620 39th Avenue and 450 38th Avenue for Redevelopment Purposes. Attachments EDA ACTION: h:\consent Form2005\EDA Res.2005-03 Condemnation-Ind Pk COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CITY OF COLUMBIA HEIGHTS COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. 2005-03 RESOLUTION AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN PROPERTY FOR REDEVELOPMENT PURPOSES WHEREAS, the Columbia Heights Economic Development Authority ("Authority") is a public body corporate and politic established pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (hereinafter referred to as the "Act"); and WHEREAS, the Board of Commissioners is the official governing body of the Authority; and WHEREAS, the Authority was created pursuant to the Act and was authorized to transact business and exercise its powers by a resolution of the City Council of the City of Columbia Heights ("City"); and WHEREAS, the City and the Authority (as successor to the Housing and Redevelopment Authority in and for the City of Columbia Heights) have undertaken a program to promote redevelopment of land that is characterized by blight and blighting factors within the City, and in this connection the Authority administers a redevelopment project known as the Downtown CDB Redevelopment Project ("Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "I-IRA Act"); and WHEREAS, pursuant to the Act and the HRA Act, the Authority is authorized to acquire real estate by exercising the power of eminent domain under and pursuant to Minn. Stat., Ch. 117, and to undertake certain activities to facilitate the redevelopment of real property by private enterprise; and WHEREAS, within the Project, the City and Authority have created the Huset Park Area Tax Increment Financing District ("TIF District") in order to facilitate redevelopment of certain property in the Project; and WHEREAS, the Authority and Huset Park Development Corporation; a Minnesota Corporation, ("Redeveloper") have previously entered into a Contract for Private Redevelopment dated as of October 25, 2004, (the "Contract for Private Redevelopment") regarding redevelopment of the property described in Exhibit A attached hereto and other property; and WHEREAS, the Redeveloper, City and Authority have taken various actions in furtherance of the Project, pursuant to the Preliminary Development Agreement and Contract for Private Redevelopment, all of which indicate the Project is feasible and desirable, including, but not limited to, environmental, blight and economic studies, determination of needed public RJL-256304v~ A- 1 CL205-23 infrastructure, agreements to acquire and acquisition of property, relocation analysis and land use planning; and WHEREAS, the Authority believes that the redevelopment of the Redevelopment Property pursuant to the Contract for Private Redevelopment, and fulfillment generally of the Contract for Private Redevelopment, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State and local laws and requirements 'under which the Project has been undertaken and is being assisted; and WHEREAS, the real estate described in Exhibit A attached hereto and incorporated herein (collectively, "Subject Property") is located within the Project, as presently constituted, and is among the parcels which are to be redeveloped pursuant to the Contract for Private Redevelopment; and WHEREAS, on October 25, 2004, by Resolution No. 2004-13, the Board of Commissioners approved, established and adopted a Modification (the "Project Plan Modification") to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project (the "Project Area"), found that the adoption of the Plans conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State of Minnesota which is already built up and that the adoption of the proposed Plans will help provide life-cycle housing for citizens of the City, and to clean up polluted soils, buildings, and groundwater, and thereby serves a public purpose; and WHEREAS, in said Resolution No. 2004-13, the Board of Commissioners found that the Plans will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the Project Area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible; and WHEREAS, in said Resolution No. 2004-13, the Board of Commissioners found that the TIF District portion of the Project Area is a "blighted area" within the meaning of Minn. Stat., §469.02, Subd. 11, and that acquisition, clearance and related activities to redevelop the TIF District portion of the Project Area in accordance with the Project Plan and the TIF Plan constitute a "redevelopment project" within the meaning of Minn. Stat. §469.002, Subd. 14; and WHEREAS, in accordance with Section 3.2 of the Contract for Private Redevelopment, the Redeveloper has notified the Authority in writing that (a) the Redeveloper has been unsuccessful in accomplishing acquisition of the Subject Property voluntarily after commercially reasonable efforts to do so; and (b) that such efforts included a written offer to owners of all such parcels to acquire such parcels for a price approved by the Authority as reasonable and an offer to mediate; and WHEREAS, the Board of Commissioners of Authority hereby finds that the Redeveloper's efforts to voluntarily acquire the Subject Property were reasonable and satisfy the requirements for doing so under the Contract for Private Redevelopment; and WHEREAS, acquisition of the Subject Property by the Authority is essential in order to eliminate blight and implement the Project; and RJL-256304vl CL205-23 A-2 WHEREAS, the Board of Commissioners finds that redevelopment of the Subject Property consistent with the Project is necessary, convenient, desirable, for a public purpose, in the best interests of the citizens of the City and will promote the general health, welfare and safety of the community; and WHEREAS, the City also desires to acquire portions of the Subject Property for street purposes; and WHEREAS, the Board of Commissioners finds that it is in the best interest of both the Authority and the City if the City proceeds to acquire all of the Subject Property and then convey to the Authority the portions thereof not required by the City for street purposes ("Remainder") so that the Authority may redevelop the Remainder pursuant to the Contract for Private Redevelopment; and WHEREAS, the Board of Commissioners finds that the funding and construction schedule for the redevelopment pursuant to the Contract for Private Redevelopment makes it necessary to acquire title to and possession of the Subject Property prior to the filing of the final report of the condemnation commissioners to be appointed by the district court. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that: 1. It is necessary that the Subject Property be acquired in fee simple absolute for the stated public purposes through the exercise of the power of eminent domain. 2. The Authority's Attomey is hereby authorized and directed to take all steps necessary to acquire the Subject Property, including, if necessary, by use of eminent domain proceedings, pursuant to Minn. Stat. § 117.042, prior to issuance of an award of damages by Court-Appointed Commissioners. 3. The City Council is hereby requested to (a) authorize and direct the Authority's attorney to commence eminent domain proceedings to acquire all of the Subject Property in the name of the City; and (b) authorize and direct its officers to convey to the Authority the portion of the Subject Property which is not required for City purposes ("Remainder") so that the Remainder may be redeveloped in accordance with the Contract for Private Redevelopment. Adopted by the Board of Commissioners of the Columbia Heights Economic Development Authority, Columbia Heights, Minnesota this __ day of ,2005. President Walter R. Fehst, Executive Director RJL-256304vl CL205-23 A-3 EXHIBIT A Legal Descriptions of Properties To Be Acquired by Eminent Domain Proceedings (collectively, "Subj ect Property") Parcel E The street addresses of Parcel E are 3755 University Avenue NE, 3700 - 5th Street NE and 317- 37th Avenue NE, Columbia Heights, Minnesota 55421. The property identification numbers for Parcel E are: 35-30-24-34-0003 (3700 5th Street NE) and 35-30-24-34-0004 (317 - 37th Avenue NE) The legal description of Parcel E is as follows: Lots 4 and 5, Auditor's Subdivision No. 50 Together with vacated and to be vacated streets and alleys accruing thereto upon vacation and appurtenant easements if any. According to the map or plat thereof on file and of record in the office of the County Recorder in and for Anoka County, Minnesota. Parcel F The street address of Parcel F is 620 - 39th Avenue NE, Columbia Heights, Minnesota 55421. The property identification number for Parcel F is: 35-30-24-43-0047 The legal description of Parcel F is as follows: Lots 1 and 2, Block 3, 2nd Subdivision of Block F, Columbia Heights Annex, together with that portion of the North ½ of 38th ½ Avenue Northeast abutting said Lots, heretofore vacated Together with vacated and to be vacated streets and alleys accruing thereto upon vacation and appurtenant easements if any. According to the map or plat thereof on file and of record in the office of the County Recorder in and for Anoka County, Minnesota RJL-25631Mvl A-4 CL205-23 Parcel G The street address of Parcel G is 450 - 38th Avenue NE, Columbia Heights, Minnesota 55421. The property identification number for Parcel G is: 35-30-24-34-0002 The legal description of Parcel G is as follows: That part of Lot 3, Auditor's Subdivision No. 50, Anoka County, Minnesota, lying 9.00 feet Northwesterly of the vacated spur track once located on said Lot 3. Together with vacated and to be vacated streets and alleys accruing thereto upon vacation and appurtenant easements if any. According to the map or plat thereof on file and of record in the office of the County Recorder in and for Anoka County, Minnesota. RJL-256304vl A-5 CL205-23 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: January 25, 2005 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTWE NO: 5-C DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Adopt Resolution 2005-04, Authorizing BY: Randy Schumacher BY: and Directing the Condemnation of Certain DATE: January 14, 2005 Property located at 3800, 3801 and 3901 5th Street for Redevelopment Purposes BACKGROUND: The Contract for Private Redevelopment between the Columbia Heights Economic Development Authority, the City of Columbia Heights and Huset Park Development Corporation (Schafer Richardson the Developer), requires the developer to voluntarily acquire each of the parcels in the redevelopment area. I have attached a copy of the developer's letter that summarizes their efforts over the last four months to voluntarily acquire property in the redevelopment area. Unfortunately, despite a good faith effort, they have been unable to acquire several of the necessary properties. Therefore, the developer is requesting that the EDA and the City proceed to acquire all such parcels by means of negotiations or through its powers of eminent domain. Staff is satisfied that the developer has met the intent and conditions of the development agreement and recommend support for Resolution 2005-04. In addition, I have attached the section of the Schafer Richardson Development Agreement that outlines the required acquisition procedure. It also details the process in which the developer is required to pay for the entire taking procedure. RECOMMENDATION: Staff recommends Adoption of Resolution 2005-04, Authorizing and Directing the Condemnation of Certain Property for Redevelopment. RECOMMENDED MOTION: Adopt Resolution 2005-04, a Resolution Authorizing and Directing the Condemnation of Certain Property located at 3800, 3801 and 3901 5th Street for Redevelopment Purposes. Attachments EDA ACTION: h:\consent Form2005\EDA Res. 2005-04 Condemnation-Ind Pk2 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CITY OF COLUMBIA HEIGHTS COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. 2005-04 RESOLUTION AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN PROPERTY FOR REDEVELOPMENT PURPOSES WHEREAS, the Columbia Heights Economic Development Authority ("Authority') is a public body corporate and politic established pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (hereinafter referred to as the "Act"); and and WHEREAS, the Board of Commissioners is the official governing body of the Authority; WHEREAS, the Authority was created pursuant to the Act and was authorized to transact business and exercise its powers by a resolution of the City Council of the City of Columbia Heights ("City"); and WHEREAS, the City and the Authority (as successor to the Housing and Redevelopment Authority in and for the City of Columbia Heights) have undertaken a program to promote redevelopment of land that is characterized by blight and blighting factors within the City, and in this connection the Authority administers a redevelopment project known as the Downtown CDB Redevelopment Project ("Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act"); and WHEREAS, pursuant to the Act and the HRA Act, the Authority is authorized to acquire real estate by exercising the power of eminent domain under and pursuant to Minn. Stat., Ch. 117, and to undertake certain activities to facilitate the redevelopment of real property by private enterprise; and WHEREAS, within the Project, the City and Authority have created the Huset Park Area Tax Increment Financing District ("TIF District") in order to facilitate redevelopment of certain property in the Project; and WHEREAS, the Authority and HUSET PARK DEVELOPMENT CORPORATION, a Minnesota corporation, ("Redeveloper") have previously entered into a Contract for Private Redevelopment dated as of October 25, 2004, (the "Contract for Private Redevelopment") regarding redevelopment of the property described in Exhibit A attached hereto and other property; and WHEREAS, the Redeveloper, City and Authority have taken various actions in furtherance of the Project, pursuant to the Preliminary Development Agreement and Contract for Private Redevelopment, all of which indicate the Project is feasible and desirable, including, but ' RJL-257983vl CL205-23 not limited to, environmental, blight and economic studies, determination of needed public infrastructure, agreements to acquire and acquisition of property, relocation analysis and land use planning; and WHEREAS, the Authority believes that the redevelopment of the Redevelopment Property pm'suant to the Contract for Private Redevelopment, and fulfillment generally of the Contract for Private Redevelopment, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the Project has been undertaken and is being assisted; and WHEREAS, the real estate described in Exhibit A attached hereto and incorporated herein (collectively, "Subject Property") is located within the Project, as presently constituted, and is among the parcels which are to be redeveloped pursuant to the Contract for Private Redevelopment; and WHEREAS, on October 25, 2004, by Resolution No. 2004-13, the Board of Commissioners approved, established and adopted a Modification (the "Project Plan Modification") to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project (the "Project Area''), found that the adoption of the Plans conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State of Minnesota which is already built up and that the adoption of the proposed Plans will help provide life-cycle housing for citizens of the City, and to clean up polluted soils, buildings, and groundwater, and thereby serves a public purpose; and WHEREAS, in said Resolution No. 2004-13, the Board of Commissioners found that the Plans will afford maximum oppommity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the Project Area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible; and WHEREAS, in said Resolution No. 2004-13, the Board of CommiSsioners found that the TIF District portion of the Project Area is a "blighted area" within the meaning of Minn. Stat., §469.02, Subd. 11, and that acquisition, clearance and related activities to redevelop the TIF District portion of the Project Area in accordance with the Project Plan and the TIF Plan constitute a "redevelopment project" within the meaning of Minn. Stat. §469.002, Subd. 14; and WHEREAS, in accordance with Section 3.2 of the Contract for Private Redevelopment, the Redeveloper has notified the Authority in writing that (a) the Redeveloper has been unsuccessful in accomplishing acquisition of the Subject Property voluntarily after commercially reasonable efforts to do so; and (b) that such efforts included a written offer to owners of all such parcels to acquire such parcels for a price which the Authority finds to be reasonable and an offer to mediate; and WHEREAS, the Board of Commissioners of Authority hereby finds that the Redeveloper's efforts to voluntarily acquire the Subject Property were reasonable and satisfy the requirements for doing so under the Contract for Private Redevelopment; and WHEREAS, acquisition of the Subject Property by the Authority is essential in order to eliminate blight and implement the Project; and RJL-256304vl 2 CL205-23 WHEREAS, the Board of Commissioners finds that redevelopment of the Subject Property consistent with the Project is necessary, convenient, desirable, for a public purpose, in the best interests of the citizens of the City and will promote the general health, welfare and safety of the community; and WHEREAS, the Board of Commissioners finds that it is in the best interest of the Authority if the Authority proceeds to acquire the Subject Property for redevelopment pursuant to the Contract for Private RedevelOPment; and WHEREAS, the Board of Commissioners finds that the funding and construction schedule for the redevelopment pursuant to the Contract for Private Redevelopment makes it necessary to acquire title to and possession of the Subject Property prior to the filing of the final report of the condemnation commissioners to be appointed by the district court. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that: 1. It is necessary that the Subject Property be acquired in fee simple absolute for the stated public purposes through the exercise of the power of eminent domain. 2. The Authority's Attorney is hereby authorized and directed to take all steps necessary to acquire the Subject Property, including, if necessary, by use of eminent domain proceedings, pursuant to Minn. Stat. §117.042, prior to issuance of an award of damages by Court-Appointed Commissioners. 3. The Authority's Executive Director is authorized and directed to determine the Authority's approved appraisal of value for each of said properties in accordance with Minn. Stat. § 117.042 prior to the need to pay or deposit such amount if required in said condemnation proceeding. Adopted by the Board of Commissioners of the Columbia Heights Economic Development Authority, Columbia Heights, Minnesota this __ day of ,2005. ATTEST: President Walter R. Fehst, Executive Director RJL-256304vl 3 CL205-23 EXHIBIT A Legal Descriptions of Properties To Be Acquired by Eminent Domain Proceedings (collectively, "Subject Property'_'.) Parcel 2 The street address of Parcel 2 is 3801 5th Street NE, Columbia Heights, Minnesota 55421. The property identification numbers for Parcel 2 are: 35-30-24-34-0024 and 35-30-24-34-0039 The legal description of Parcel 2 is as follows: All of Lots 29, 30, 31 and all of Lot 28, except the East 13 feet of said Lot 28, in Block 83, and the vacated 14 foot alley North and adjacent to said above described property; all in Columbia Heights Annex to Minneapolis, Anoka County, Minnesota. Also that part of Block "F" of Columbia Heights Annex to Minneapolis, Anoka County, Minnesota, described as follows: Beginning at the Southwest comer of said Block "F"; thence East along the North line of alley a distance of 152.5 feet; thence North on a line running parallel with the East line of 5th Street Northeast to its intersection with the Southeasterly line of 39th Avenue Northeast as opened; thence Southwesterly along said Southeasterly street line to its intersection with the East line of 5th Street Northeast, thence South along said East street line to the point of beginning. The north half of that part of the vacated alley as dedicated in the plat of "Columbia Heights Annex to Minneapolis, Anoka County, Minnesota", lying easterly of the northerly extension across it of the west line of the east 13 feet of Lot 28, Block 83, said plat of "Columbia Heights Annex to Minneapolis, Anoka County, Minnesota", and lying westerly of a line drawn parallel with and distant 152.5 feet east of the east line of Fifl_h Street, NE, said parallel line also being the west line of Tract A, Registered Land Suryey No. 159. (Torrens Property, Certificate No. 76362) Tract A, Registered Land Survey No. 159. (Torrens Property, Certificate No. 79188) Together with vacated and to be vacated streets and alleys accruing thereto upon vacation and appurtenant easements if any. According to the map or plat thereof on file and of record in the office of the County Recorder in and for Anoka County, Minnesota. Parcel 3 The street addresses of Parcel 3 are 3800 and 3901 5th Street NE, Columbia Heights, Minnesota 55421. RJL-256304vl A-1 CL205-23 The property identification numbers for parcel 3 are: 35-30-24-34-0041 and 35-30-24-34-0035 The legal description of Parcel 3 is as follows: All of Lots 7 and 8, Rearrangement of Block E, Columbia Heights Annex, Anoka County, Minnesota. That part of Lots 5, 6 and 9, said Rearrangement of Block E, Columbia Heights Annex, lying Easterly of the East line of University Avenue NE, except that part thereof lying Northerly and Westerly of the following described line: Commencing at the Northeast comer of said Lot 5, in said Rearrangement of Block E, Columbia Heights Annex; thence South 30 degrees 19 minutes 23 seconds East on an assumed bearing along the Easterly line of Lots 1 through 8 in said Rearrangement of Block E, a distance of 32.33 feet to a 1/2" inside diameter iron pipe monument capped R.L.S. 10832, the actual point of beginning; thence South 89 degrees 45 minutes 19 seconds West a distance of 107.77 feet to a 1/2" inside diameter iron pipe monument capped R.L.S. 10832; thence South 51 degrees 48 minutes 07 seconds West a distance of 115.26 feet to a 1/2" inside diameter iron pipe monument capped R.L.S. 10832; thence South 1 degree 03 minutes 07 seconds East a distance of 54.97 feet to a 1/2" inside diameter iron pipe monument capped R.L.S. 10832; thence South 89 degrees 41 minutes 39 seconds West a distance of 134.51 feet, more or less, to a point on the Easterly line of University Avenue NE distant 734.92 feet Southerly fi:om the intersection of said Easterly line of University Avenue NE and the Northerly line of Lot 1 in said Rearrangement of Block E, Columbia Heights Annex, and there terminating. EXCEPT That part of Lot 5, described as follows: Commencing at the Northeast comer of said Lot 5; thence South 30 degrees 19 minutes 23 seconds East on an assumed bearing along the Easterly line of said Lot 5 a distance of 32.33 feet to a 1/2" inside diameter iron pipe monument capped R.L.S. 10832, to the actual point of beginning; thence South 89 degrees 45 minutes 19 seconds West a distance of 107.77 feet to a 1/2" inside diameter iron pipe monument capped R.L.S. 10832; thence South 51 degrees 48 minutes 07 seconds West a distance of 27.64 feet; thence North 89 degrees 10 minutes 53 seconds East a distance of 138.61 feet to the Easterly line of said Lot 5; thence North 30 degrees 19 minutes 23 seconds West along said Easterly line of said Lot 5 a distance of 18.04 feet to the point of beginning and there terminating. Lots 41 and 42, Block 70, Columbia Heights Annex to Minneapolis, except those portions thereof taken for street or highway purposes. Lots 43 to 54, inclusive, Block 70, said Columbia Heights Annex to Minneapolis. That part of Block E, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota, described as follows: RJL-256304vl CL205-23 A-2 Beginning at the Southeast comer of Block E; thence North along the West line of Fifth Street NE, 171.6 feet; thence Northwesterly along the Southwesterly line of Lookout Place, 182 feet; thence Southwesterly to a point in the Northeasterly line of alley and in the Northwesterly radial boundary line of the above described part of said Block 70, said radial boundary line being produced to the Northeasterly line of said alley; thence along the said Northeasterly line of alley Southeasterly to the North line of Thirty-Eighth Avenue NE; thence East along the North line of Thirty-Eighth Avenue to the point of beginning. Vacated Edgemoor Place lying Easterly of the Easterly line of University Avenue NE and Northerly of the North line of 38th Avenue NE. The vacated alley lying Easterly of and adjacent to Block 70, Columbia Heights Annex to Minneapolis, and bounded on the West by the Easterly line of University Avenue NE and bounded on the South by the Northerly line of 38th Avenue NE. Lots 7 through 12, inclusive, Block 69, Columbia Heights Annex to Minneapolis; the vacated alley in Block 69, Columbia Heights Annex to Minneapolis, lying Southerly of the Westerly extension of the South line of the Northerly 12.5 feet of Lot 11 in said Block 69; and vacated Lookout Place lying Southerly of the Westerly extension of the South line of the Northerly 12.5 feet of Lot 11 in said Block 69. That part of Block 98, Columbia Heights Annex to Minneapolis, lying Easterly of the East line of University Avenue NE. (Abstract Property) Lots 13, 14, 15, 16, Block 69, Columbia Heights Annex to Minneapolis, and that part of Lot 17, Block 69, Columbia Heights Annex to Minneapolis, lying Southerly of the Westerly extension of the North line of the South half of Lot 10 in said Block 69. (Torrens Property, Certificate No. 87560) Lots 9 through 20, inclusive, Block 2, First Subdivision of Block F, Columbia Heights, Minnesota, Anoka County, Minnesota. Lot 12, Block 1, First Subdivision of Block F, Columbia Heights, Minnesota, Anoka County, Minnesota. The West half of that vacated alley lying Easterly of Lots 18, 19 and 20 in said Block 2, First Subdivision of Block F, Columbia Heights, Minnesota. That vacated alley lying between Lots 9, 10 and 11 on the East and Lots 12 through 17, inclusive, on the West, in said Block 2, First Subdivision of Block F, Columbia Heights, Minnesota. RJL-256304vl A-3 CL205-23 That vacated street lying between Lot 12, Block 1, on the East and Lots 9, 10 and 11, Block 2, on the West, all in said First Subdivision of Block F, Columbia Heights, Minnesota. A tract of land bounded on the North by the Southerly line of First Subdivision of Block F, Columbia Heights, Minnesota; bounded on the West by the West line of Block 2 in said First Subdivision of Block F, Columbia Heights, Minnesota, produced Southerly; bounded on the East by the East line of Block 1 in said First Subdivision of Block F, Columbia Heights, Minnesota, produced Southerly; and bounded on the South by a line parallel with and 10 feet distant Northwesterly (measured at right angles) from the center line of the main track of the Minneapolis, St. Paul and Sault Ste. Made Railroad Company's so called Columbia Heights spur. (Abstract Property) Together with vacated and to be vacated streets and alleys accruing thereto upon vacation and appurtenant easements if any. According to the map or plat thereof on file and of record in the offices of the County Recorder and Registrar of Titles in and for Anoka County, Minnesota RJL-256304vl A-4 CL205-23 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Meeting of January 25, 2005 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: 5-D DEPARTMENT: DIRECTOR Community Development APPROVAL ITEM: Redevelopment Plan for Presentation BY: Robert Streetar BY: DATE: January 25, 2005 BACKGROUND: This block on the west side of Central Avenue includes, from south to north, the Taco Bell, Carwash, Udupi Restaurant, Barbershop, Exotic Pet Store and LaCaberna Bar and Grill. Welsh Companies is representing the owner of the now vacant Exotic Pet Store building. Welsh has indicated the owner of the Exotic Pet store would like to redevelop the corner that includes the Barbershop and LaCaberna, both of whom have indicated their desire to Welsh Companies to sell. Welsh indicates a redevelopment would most like be a three tenant commercial service / retail building. Welsh contacted the City asking if they are interested in supporting the redevelopment of this corner with financial assistance. This is a good opportunity to greatly improve the look of Central Avenue, as well as preserve the 55 million dollars of investment in housing on the Kmart site. RECOMMENDATION: Staff recommends the Commissioners direct staff to work with Welsh Companies to prepare a redevelopment plan for presentation to the EDA at a future meeting. EDA ACTION: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: January 25, 2005 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: 5-E DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Adopt Resolution 2005-05, Scheduling a BY: Randy Schumacher BY: Public Hearing on Use of Eminent Domain DATE: January 25, 2005 Proceedings to Acquire Property for Redevelopment Pursuant to the Downtown CBD Redevelopment Project BACKGROUND: The attached Resolution 2005-05 Authorizes the Scheduling of a Public Hearing for use of Eminent Domain proceedings to acquire property for redevelopment in the Industrial Park. Notices will be mailed to the owner of each parcel proposed to be acquired. Schafer Richardson has requested that the EDA Board of Commissioners schedule such a Public Heating to be held at its meeting of February 24, 2005. RECOMMENDATION: Staff recommends Adoption of Resolution 2005-05, scheduling a Public Heating for use of Eminent Domain proceedings to acquire property for redevelopment in the Industrial Park. RECOMMENDED MOTION: Move to Adopt Resolution 2005-05, a Resolution Scheduling a Public Hearing on use of Eminent Domain Proceedings to acquire property for redevelopment pursuant to the Downtown CBD Redevelopment Project. Attachments EDA ACTION: h:\consent Form2005\EDARes.2005-05, Public Hearing for Eminent Domain RESOLUTION NO. 2005-05 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY SCHEDULING A PUBLIC HEARING ON USE OF EMINENT DOMAIN PROCEEDINGS TO ACQUIRE PROPERTY FOR REDEVELOPMENT PURSUANT TO THE DOWNTOWN CBD REDEVELOPMENT PROJECT WHEREAS, the Columbia Heights Economic Development Authority ("EDA") is the successor to the Housing and Redevelopment Authority in and for the City of Columbia Heights and has received a proposal fi:om Huset Park Development Corporation ("Redeveloper") to redevelop certain real estate in the City of Columbia Heights (which real estate is described in Exhibit A attached hereto) which is located within the EDA's Downtown CBD Redevelopment Project. WHEREAS, Redeveloper has submitted a written request to EDA that the EDA Board of Commissioners authorize acquisition of said real estate by eminent domain proceedings and conveyance of said real estate to Redeveloper for redevelopment as part of the Downtown CBD Redevelopment Project pursuant to agreements between EDA and Redeveloper. WHEREAS, prior to commencement of eminent domain proceedings pursuant to Minn. Stat. Section 469.012, a housing and redevelopment authority is obliged to hold a public heating on the question of whether it should authorize commencement of such proceedings. WHEREAS, Redeveloper has requested that the EDA Board of Commissioners schedule such a public hearing to be held at its meeting of February 24, 2005. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Columbia Heights Economic Development Authority, that the Executive Director of the Authority is authorized and directed to publish notice in a newspaper of general circulation in the City of Columbia Heights, that a public hearing will be held by the Board of Commissioners of the EDA on February 24, 2005, beginning at 7:00 p.m. in the Columbia Heights City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota 55421, to hear public comment on the question of whether the EDA Board shall authorize and direct the acquisition of said real estate, including by use of eminent domain proceedings, for redevelopment thereof in furtherance of the Downtown CBD Redevelopment Project. Said notice shall be published at least one time not less than ten days nor more than 30 days prior to the date of the hearing. The notice must reasonably describe the property to be acquired and state that the purpose of the hearing is to consider acquisition by exercise of the Authority's powers of eminent domain. Not less than ten days before the hearing, notice of the hearing must also be mailed to the owner of each parcel proposed to be acquired but failure to give mailed notice or any defects in the notice does not invalidate the acquisition. For the purpose of giving mailed notice, owners are determined in accordance with section 429.031, subdivision 1, paragraph (a). RJL-258447vl 1 CL205-25 Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority on the ~ day of January, 2005. President ATTEST: Walter R. Fehst, Executive Director RJL-258447vl 2 CL205-25 EXHIBIT A Legal Description of Property Proposed to be Redeveloped as Part o£Downtown CBD Redevelopment Project Parcel C The street addresses of Parcel C are 550 - 39th Avenue NE, 3801 - 5th Street NE, 3800 - 5t~ Street NE, and 3901 -5th Street NE, Columbia Heights, MN The property identification numbers for Parcel C are: 35-30-24-34-0040, 35-30-24-43-0060, 35-30- 24-34-0024, 35-30-24-34-0039, 35-30-24-34-0041 and 35-30-24-34-0035 Parcel D The street address of Parcel D is 515 - 38th Avenue NE, Columbia Heights, MN The property identification numbers for Parcel D are 35-30-24-34-0013 and 35-30-24-34-0014 Parcel E The street addresses of Parcel E are 3755 University Avenue NE, 3700 - 5th Street NE and 317-37th Avenue NE, Columbia Heights, Minnesota 55421. The property identification numbers for Parcel E are: 35-30-24-34-0003 (3700 5th Street NE) and 35-30-24-34-0004 (317 - 37th Avenue NE) Parcel F The street address of Parcel F is 620 - 39th Avenue NE, Columbia Heights, Minnesota 55421. The property identification number for Parcel F is: 35-30-24-43-0047 Parcel G The street address of Parcel G is 450 - 38th Avenue NE, Columbia Heights, Minnesota 55421. The property identification number for Parcel G is: 35-30-24-34-0002 RJL-258447vl CL205-25 TO: EDA Commissioners FROM: Robert Streetar, Deputy Executive Director DATE: 19 January 2005 SUB J: January Update Industrial Park The City's application for the Contamination Clean-up Grant in Phase II of the Columbia Heights' Industrial Park was approved for funding. Of the twenty-eight applications Columbia Heights ranked #2 with the State and #6 with the Metropolitan Council. The City received full funding of its grant application in the amount of $871,789. This brings the total grant dollars received on this project from the Metropolitan Council and the State of Minnesota in the last two years to over $2,205,000. These dollars will be earmarked for the removal and clean up of the old foundry and related out buildings at 3800 5th Street. Demolition of the buildings in Phase I of the Industrial Park is proceeding well. The old Rayco building at 3801 5th Street has been completely removed, asbestos abatement will be completed by the end of the month in the Honeywell building and demolition will commence the first week in February. Staff is working closely with the developer and MN Dot in the development of plans and specifications for the parkway system. Preliminary drawings will be available for review within the next 30 days. Kmart The first of the three loft condominium buildings is almost fully framed. The developer indicates that 16 of 67 units are sold, with sales prices between 192,000 and 335,000.The developer and the City's financial consultant, Mark Ruff from Ehlers, met to discuss financing for the second phase that includes the hotel on the current Saver's site. The developer indicated in order for the hotel to be financially feasible at least 5 million dollars in public financial assistance would be required, which includes free land with a value of 1.5 million, a 200+ stall parking deck at 2 million, and cash of 1.5 million. In addition, the City would be requested to bond for the 5 million. Also, the owner of the Savers' site will only sell for 4.3 million dollars, an amount significantly more than the property is worth. The developer would like to investigate the possibility of building the hotel south of 47th avenue. Subsequently, the developer still wants to redevelop the area that includes BW3, Welle Auto and the small strip mall. Mr. Steak The owner of Mr. Steak (4545 Central Avenue) would like to sell their building and get out of the restaurant business. The owner indicates the restaurant's concept is worn and the clientele are mostly retired eldedy. Mary Rooney, the realtor representing the owner, indicates that the initial sales price was $750,000, but that it is now listed for $699,000. She also indicates the owner would sell to the City for $600,000. The lot is 34,569 sf (320' x 108'). The EDA may want to consider a possible acquisition, demolition and a remarketing of the building for a new use and improved look on Central Avenue. 39th ! 37th and Central Planning begins for the area along Central Avenue between 37u~ and 40th Avenues. As the City's central business district this area is ripe for reuse and redevelopment. In the last few years the City has acquired and/or demolished two single-family homes, and two commercial buildings. In addition, the City has improved Central Avenue to include the road, sidewalk, streetscaping and traffic safety. In addition, there exists currently, a small run down office building, five non-conforming single family homes, as well as Michael Anthony's Salon that has indicated there willingness to sell to the City. City staff, working with DSU, would like to begin a 90 to 120 process to plan for this area of Central Avenue. The cost for DSU's services is paid for using Metro Council grant funds the City received over two years ago. The outcome would be a 5 - 7 year road map of what the City wants to accomplish along this stretch of Central Avenue. Recreation Center As the result of Council direction at the January 18 work session, staff is worker with Kraus Anderson to determine the construction costs of a recreational facility based upon the recommendations of the Maxfield market feasibility report. In addition, staff will prepare a preliminary operating budget for the proposed facility.