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HomeMy WebLinkAboutEDA MIN 04-26-05 ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES APRIL 26, 2005 CALL TO ORDER/ROLL CALL President, Murzyn, Jr., called the meeting to order at 9:18 p.m. Present: Don Murzyn Jr., Patricia Jindra, Gary L. Peterson, Bobby Williams and Bruce Nawrocki, Tammera Ericson Diehm, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE CONSENT AGENDA Approval of Minutes Financial Report and Payment of Bills Nawrocki asked why in the March financial report for Community Development shows we are a little over budget for personal services. Streetar stated once Walker started managing Parkview Villa, staff administrative hours are paid back to the City on a quarterly basis. MOTION by Ericson Diehm, second by Peterson, to Adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION NEI Site Redevelopment Proposal Streetar stated Legacy and Walker are partnering together and would like to encourage the EDA to get involved in a Senior Housing Community plan on the northeast corner of the NEI site. Seniors could sell their home, move into this 66-unit community that would still allow them to receive a tax base for the unit. There are three concepts: 1) a senior housing community; 2) library; and 3) a community center on the site. The plan would meet some of the Comprehensive goals and the goals of the City to develop housing in the City and retain residents. It breaks down to about 90 cents per sq foot, which is approximately the same as Parkview Villa. Streetar held up a drawing of the proposed site. In the past the board has not be interested in rental housing. Mr. Lamb, Legacy Management Corporation and Mr. Koester, the architect, are in attendance to answer any questions. There are two primary costs involved: 1) Share Cost- a one-time "down payment" that purchases a share in the corporation and 2) Monthly Fees-include the mortgage principal and interest payments, real estate taxes, operating expenses, liability insurance for the building, legal and accounting services, professional management, lender-required reserves, as well as interior and exterior maintenance, sewer, water, trash, and recycling. Members would be responsible for their phone and electricity bills. Interest expensed and real estate taxes incurred on the home would be tax deductible. The concept meets three of the housing goals in the Comprehensive Plan; 1) promote a variety of life-cycle housing, 2) promote medium, density owner-occupied housing, and 3) promotes Economic Development Authority Meeting Minutes April 26, 2005 Page 2 of 4 housing that attracts and retains residents. Also in the demand study preformed by Maxfield indicates a demand between 100 and 125 units of independent senior housing through 2013. Staff is recommending the EDA enter into a preliminary development agreement with Legacy that would allow them to prepare a proposal for review and approval before October 28, 2005 with the developer paying $5,000 in escrow to pay for EDA expenses to review the proposal, as well as $3,000 upon execution of this agreement, with a possible 90 day extension to the agreement for an additional $3,000. Ericson Diehm asked what age of seniors would qualify for the units. 0 'Donnell stated it would be 55 and over, owner occupied units. Nawrocki asked who is Legacy qnd are they connected to the Legacy company at 4f1h & Central. Mr. Koester stated they have been in business since 1974, owned by the Gibbonsfamily, has been developing affordable work force housing, they used to own nursing homes in Minneapolis, which they sold approximately seven or eight years ago, they have built a library in St. Paul, and they are not connected with Legacy company. Nawrocki stated 1) until the City has an overall plan for the property it doesn't make sense to split it up; 2) he's not interested in working with Walker with the experiences from this building; and 3) we should look at a competitive bid from other companies for this property. Ericson Diehm stated at some point there was talk of coop units in the Industrial Park, will that happen. Schumacher stated the industrial park would not have coop units. Peterson stated he agreed with Nawrocki, that we are a little premature at signing an agreement, as City Council has not explored the options for the site, would like to have some serious meetings with the people interested in the community center and library, we need to get on the same page, make some decisions, there is a group that is working on getting gym space in the city, he isn't in favor of any gym space made available for other cities. Kelzenberg stated he likes the plan, but would like to see us go out for bids. Williams stated he agreed with Peterson and Nawrocki. Murzyn, Jr. stated he has reservations of putting the Community Center on that site, would like to see the City Council make a decision as to what they want on the site, has heard the Council is against it and preferred to table this item until a decision is made by City Council. Ericson Diehm stated she agrees the City Council needs to determine what they want there, but hopes the developers know that we appreciate the plans they have before us and asked why were waiting, what do we need to get things going. Fehst agreed the council needs to make a decision, understand the board has had some issues with Walker staff, but felt Walker has done a lot of good for the building, and would like to keep Legacy and Walker as a possible developer of the site. Streetar asked if the board wants staff to stop marketing the site until after the EDA and City Council have made a decision. Murzyn, Jr. stated yes, and we should have ajoint meeting with the City Council and the EDA to make some determinations. Economic Development Authority Meeting Minutes April 26, 2005 Page 3 of4 Streetar stated on May 11h the EDA board is invited to attend the council worksession where we will be presenting all of the options for the community center, which will give them all of the information that staff and committees have obtained. Nawrocki felt the meeting on the 11h is premature, as people he has talked to aren't supportive, Gym's should work in conjunction with the school district, they should meet with us, give them time to work with the people in the community to see what the actual desires are, who is going to operate it and pay for it. Murzyn, Jr. stated this item is tabled until the City Council and EDA meet and come up with some decisions. Adopt Resolution 2005-08. First Amendment to Contract for Private Redevelopment Schumacher stated the EDA entered into a redevelopment agreement in September of 2003 with New Heights Development LLC (Bruce Nedegaard) for construction of owner-occupied housing and commercial development at'the Kmart site. The last several months, Nedegaard has attempted to acquire a 60-foot roadway easement to access his development from 4f1hfrom the current owner, Mr. Walter Scott that owns the property where the savers building is located, with no response. Staff has prepared an amendment to the development agreement that would enable the City to move forward in the process to obtain this needed right-of-way. The developer would be responsible for all costs associated with this acquisition. Kennedy and Graven prepared the amendment for board review. Staff is recommending the EDA approve the proposed contract amendment and request City Council commence with the eminent domain proceedings for the right-of way, as this is needed for public purposes. Nawrocki asked what is the difference between temporary and permanent easement, and stated if he is correct, doesn't the county need a portion of 4f1h. Streetar stated that is correct that the county needs a portion of 4f1h and in the original agreement the owner of the home next to the development site, requested a rock wall be put up so that is why the plan shows a temporary and a permanent easement. The bold line on the map is the center of the road and will be shifted 10 feet to the west, which isn't shown on the map. Motion by Ericson Diehm, second by Peterson, to Adopt Resolution 2005-08, a Resolution Approving a First Amendment to Contract for Private Redevelopment between the Columbia Heights Economic Development Authority and New Heights Development, LLC; and furthermore, to direct the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Concept Redevelopment Plan for the property located at 40th & University Schumacher stated this is an introduction and general concept plan only, not a plan review. Tom and Gordy Solz, real estate advisors for the proposed developer, Jim Sarna, are requesting feedback from the EDA on a concept plan to construct a 6,000 square foot restaurant on the southeast corner of 4rJh & University. Mr. Sarna has hired SSV Architects to prepare four alternative site plans for EDA consideration. The proposed restaurant includes rooftop dining, a lounge and outdoor seating to accommodate approximately 200 patrons. The issue tonight is that Mr. Sarna is requestingfeedback to see if the EDA is interested in a restaurant on that site. The EDA has used Community Development Block Grant funds to obtain the properties, so the board regulates what will be built on the site. The Preliminary Development Agreement would be the .. ~ Economic Development Authority Meeting Minutes April 26, 2005 Page 4 of 4 next step if the board would be interested. Dave Sarna stated it would be a bar and restaurant, casual dining, similar to Applebee's, but less noisy, and would cost approxim,ately 1.5 million to develop it. John Seviola stated he and his son have built many buildings for Mr. Sarna and the Sarna's are very willing to work with the community. Nawrocki stated he is concerned with the attached properties and alley access, what happens to the alley is important, he understood they want to abandon a portion of the alley and the access from lookout to 4dh Avenue. Peterson stated he has been involved with Mr. Sarna, they will work with the community, are a good company, produce a good end product, would work with the City on such things as screening, trees, bushes, lighting, etc., they are willing to provide these things. Joyce Shellito stated as a resident in the area, she felt out of the loop of what is happening on the site, needs to get a 32-foot trailer backed into their yard through the alley. Peterson stated this is why you were invited hear tonight so you can hear what this concept is. Mr. Shellito stated he felt the idea of a restaurant on that corner was a good idea. Mike Gondek stated he needs access from the alley to his business. Streetar suggested Mr. Gondek and the Shel/itols meet with the Sarna's to discuss the issues, if the EDA likes the idea of the restaurant. Ericson Diehm stated her initial response to the general concept is in favor of it and suggested the Sarna's set up meetings with the neighbors. Murzyn, Jr. felt a restaurant was a good idea for the site and directed staff to work with the Sarna's to develop documents for review for a restaurant concept. ADMINISTRATIVE REPORTS- none ADJOURNMENT President, Murzyn, Jr., adjourned the meeting at 10:53 p.m. Respectfully submitted, ~ /l-~ Cheryl Bakken Community Development Secretary H: \EDAminutes2005\4-26-2005