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HomeMy WebLinkAboutEDA MIN 06-28-05 ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES June 28, 2005 CALL TO ORDEWROLL CALL President, Murzyn Jr., called the meeting to order at 7:06 p.m. Present: Don Murzyn Jr., Patricia Jindra, Bruce Nawrocki, Tammera Ericson Diehm, Gary L. Peterson and Bruce Kelzenberg Absent: Bobby Williams PLEDGE OF ALLEGIANCE CONSENT AGENDA Approval of Minutes of April 26. 2005 Financial Report and Payment of Bills Nawrocki asked who Bruce Kortz is and why are we paying Mark Nagel's salary. Jindra stated Kortz is an extra maintenance man at Parkview Villa. Streetar stated Nagel is workingfor Walker and is being paid by them. Nawrocki stated he thought the employee salaries came out of' the management contract fees not Parkview 's budget. Streetar stated they don't get any more money than what is in the budget, but if anyone gets sick, they have the ability to use the budget funds to cover and that he would check into this for Nawrocki. MOTION by Peterson, second by Jindra, to Adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION Goal Settin2: Streetar presented a Power point presentation highlighting the Community Development Goal Setting process. In 2002 the Citv Council established the following goals: 1) redevelop the Ind. Park; 2) evaluate the Development of S. Lomianki Park; 3) redevelop 4dh and University; 4) Evaluate Options for Parkview Villa North/South (NEI); 5) improve the housing stock; 6) increase the tax base; 7) redevelop 3th & Central; 8) redevelop Mady's Bowl site; 9) promote Columbia Heights and 10) redevelop the Radiator Shop at 4201 Central (Kmart) and redevelop 4dh and Jackson to Van Buren (3th and Stinson). The development hi!!hli!!hts were as follows: 1) Redevelopment- a) Grand Central Lofts, with 231 units of new housing; b) Parkview-with 548 units of new housing, providing park dedication and 4.2 million dollar increase in property taxes and c) Profile Tool, which was also a part of the Industrial Park Redevelopment project; and 2) Predevelopment- a) 391h & Central, b) 3t & Central, c) 825 4rl Avenue, and d) 4dh & University where we acquired 2 homes, a gas station, a portion of another property and a small business office. Economic Development Authority Meeting Minutes June 28, 2005 Page 2 of? Under Housin!! staffhas initiated thefollowing: 1) GMHC- Home Rehabilitation Rebate Program; 2) Housing Resource Center, that offers guidance to residents for such things as home improvement loans, and construction scopes; 3) The Housing Replacement Program isfunding received through GMHC and Met Council received to purchase homes in Columbia Heights for new housing; and 4) Rising to New Heights, staff assists the residential group with their annual Housing Fair. Future items include the Point of Sale Program and the Home Rehabilitation Tax Abatement Program. Other Important Achievements are: 1) Central Avenue Design Guidelines developed; 2) Planning Application Process & Fees- the fees have been updated and the forms were redone to make it easier for contractors and residents to fill out; 3) Information Handouts and Application Materials on City Web Site- Cher Bakken has done an excellent job of putting together new handouts, permit forms, and redevelopment documents for the departments portion of the City Website, which helps applicants and is time saving for staff. Grants Dollars taken in the past 3 years are: 1) $1, 634,500from DEED; 2) $1,376,600from Anoka County CDBG; 3) $665,200 Metropolitan Council; 4) $145,000 from MN Housing Finance Agency; 5) $1,000from the Economic Development Association of Minnesota; and 6) $500from CenterPoint Energyfora total of$3,822,800. Investment- this is the lh year our budget has been on hold, in 2006 our budget will be $499,000 and in 2003 it was $503,000, which is a -$4,000. Budget reduction absorbed is -$60,000 with our labor reduction at a -433 hours. Goals- The 5 external goals are: 1) continue to provide quality services with limitedfunding; 2) to understanding and adapt to the demographic changes in the City-Cher Bakken has taken an on-line Spanish course and has been working with the residents and contractors that come in for permits and homesteading; 3) improve the City's Housing Stock-which we have already discussed; 4) attract new residents and retain existing homeowners to promote household growth and stabilize the tax base, which we have done by working with the Rising to New Heights group and GMHC; and 5) continue to redevelop the City's Commercial and Industrial Property. To improve the Citv housin!! stock we have invested: 1) $15,000 with Housing Resource Center; 2) $35,000 in the Home Rehabilitation Rebate Program; 3) Zero dollars in the Home Remodeling and the Point of Sale program and Home Rehab Tax Abatement Program are things we would like to focus. Redevelopment Proiects In the last 24-36 months: 1) Industrial Parkfrom 2002-2010 (8 years); 2) 39h & Centralfrom 2003-2009 (6 years); 3) Kmartfrom 2002-2009 (7 years); 4) Point of Sale from 2005-2006 (1 year); and 5) 4dh & University from 2002-2006 (1year). Redevelopment Opportunities and Challenges: 1) Heritage Heights Neighborhoodfrom 2005- 2010 (5 years); 2) 49h & Central/Liquor Store from 2005-2008 (3 years); 3) 825 4rl Avenue(NEI) from2004-2006 (3 years); 4) 3th & Central starting in 2006 for 2 years; 5) 3th & Stinson starting in 2006 for 3 years; 6) Community Center starting in 2006 for 2 years; and 7) non-conforming Houses starting in 2006 for 7 years. Economic Development Authority Meeting Minutes June 28, 2005 Page 3 of? The board can choose one of two options for staff to work on. Option A, would be to hold the line for the Industrial Park, 39h & Central, Kmart, Point of Sale and 40th & University. With Option B, staff would work on all of option A projects, plus Heritage Heights and 49th & Central at a cost of $68,000 to hire an additional staff person. Streetar asked what the board would like to do. Fehst stated he has talked with staff on the possibility of additional staff to work on these projects, felt there is a need, with the funds coming in, it would be feasible, now is the time to build on what we have started in the last couple of years. Randy's time is coming to an end with the City, we need someone that can take over, then when there is a change in staff we can keep going, and strongly recommended additional staffing. Murzyn, Jr. asked Peterson what the City Council felt about this. Peterson stated these are the priorities we need to address, the opportunities available to us. Ericson Diehm stated the $68,000 is a small cost for services to add an additional person to the Community Development Department, this is a good time to keep going with redevelopment, many developers are coming to us to redevelop sites in our City and we shouldn't stretch our staff too thin where they will want to walk away. Kelzenberg felt staff in Community Development has worked very hard and if we need another staff person the $68,000 is not a lot of money to invest into our City's future. Streetar stated the new person would write the grants we need for redevelopment projects in the City. Nawrocki stated the grants and CDBG funding for development should go to outside contractors for demo, and asbestos removal. Fehst stated Nawrocki didn't realize how fortunate we are to have the staffwe have, with their abilities, and quick response working to redevelop this City, in the inter-ring suburbs it is hard to get people to redevelop the area. Bruce Nedegaard, 49h & Central, stated he is also working on the Ramsey Town Center where the City has two full time people to work on the project, he is also the one that brought the redevelopment idea to City Council for 49h to 4th., Thefirst thing people ask when they come to see the Grand Central Loft models is what are we going to do with the run down areas to the south and north of the project. He realizes the City is facing a budget crunch, but if you don't hire the staff needed to accomplish this, you might as well stop here and people won't come to Columbia Heights. Ericson Diehm, agreed that we need to spend money to upgrade the City in order to keep our residents and encourage new residents to reside here. Motion by Peterson, second by Kelzenberg, to recommend City Council approve hiring an additional staff person as soon as possible for the Community Development Department. Economic Development Authority Meeting Minutes June 28, 2005 Page 4 of? Nawrocki asked what positions are currently approved, contracted, and what positions we have that aren't approved. Streetar stated that Randy, Cher, Shelley, Larry, himself, are approved positions and the planner position, which needs to be filled. Currently we have a part time contract planner. We have a reduction in staff of 790 hours from Mark Nagel's position. Nawrocki stated Community Development has more people than the City ever had in that department and that previous staff have accomplished just as much. Streetar stated he has gone back in the files 15 years and did not see anywhere that we had as much grant dollars in a 3- year period, with the amount of staff we have. Ericson Diehm stated Mr Nawrocki, you have a lot that you've done for this City, you've done some wonderful things for this community and we thank you for that, but whenever our current staff does something they should be commended for, you knock them down, why can't you be in agreement with the rest of us and for once thank our staff for all of their hard work. Peterson stated the issue is clear, we need help now, when a business opportunity comes to us, we need to act on it and asked to call for a vote. Upon Vote: Jindra- aye, Nawrocki- nay, Ericson Diehm- aye, Kelzenberg- aye, Peterson- aye, Murzyn- aye. Motion Carried. Sarna A2:reement for 40th & University Redevelopment Schumacher stated at the last EDA meeting in April, developer Jim Sarna and real estate representatives, Tom and Gordy Solz, introduced a general concept plan to construct a 6,000 sq ft restaurant on the corner of 4dh & University. The boards directed staff to work with Mr. Sarna to prepare a Preliminary Development Agreement. The agreement in the packet will run for 90 days, while negotiations between the EDA and Sarna's proceed in an attempt to formulate a definitive development contract proposing economic feasibility and soundness, equity financing, cash resources, site design and engineering issues. The key issues 1) is this the type of development the board wants to see on this site 2) will it be successful 3) does it meet the economic feasibility and soundness test and 4) are the building standards acceptable. There are some residents present tonight that would like to discuss things like alley access, street access, and set backs tonight, which are good issues to discuss, however, these issues will be addressed at another meeting, tonight we are here to determine whether or not the board wants a restaurant at this location. Gordy Solz, real estate advisor for Mr. Sarna stated this is the right priced restaurant for the residents in the community, this type of restaurant would present a good facade on that corner, it will have good access, Sarna's have been in the business for over 30 years, started with gas stations, which are all sold at this time, the Sarna's work with the community by listening to their comments and concerns, they keep up their property, shrubbery and the grounds are always keep up, they own 2 tobacco shops which are very successful (one in Columbia Heights and one on University), they haven't owned a restaurant before, but they know how to run a successful businesst. Economic Development Authority Meeting Minutes June 28, 2005 Page 5 of? Nawrocki stated his concerns are: 1) that the basement would someday possibly be a banquet room; 2) rooftop seating, where are the people going to park when there is only about 80 parking spots available to the site; 3) the sales price of $75,000 for the land is a steal, the City has already incurred expenses to buy, clear, and prepare the land for development; 4) the concerns of the neighbors is important and should be addressed upfront and 5) important to look at the residential area parking problems. Nawrocki also stated he would hope the restaurant would be successful, but certainly could not predict this. Murzyn, Jr. asked if the Planning and Zoning Commission doesn't address the issues of alley and sidewalks. Fehst stated they do and as Schumacher stated before we are only approving a Predevelopment Agreement. Murzyn, Jr. asked Peterson what amount the EDA and Williams-Peterson Partnership agreed on for the land. Peterson stated it was $75,000. Murzyn, Jr. asked Schumacher if Ehlers had the chance to perform the full review. Fehst stated they did not, but we do have the ultimate choice to review these items. Schumacher stated the review done by Stacie Kvilvang of Ehlers was done the same way she would with any other agreement. Peterson stated we have parking requirements in the City and the Sarna's would have to meet our requirements, there are some utilities that are on the site, there is the MGS building, who is going to pay to tear it down, the residents want an alley access, this is something that needs to be negotiated, we have a good solid proposal here and it is certainly better than the last two that we have had for that site, they have a tenant ready to move it, they have a plan, they would be good partners with the City. Ericson Diehm, agreed we didn't hurt when we signed the agreement with Haugland or Williams-Peterson, and neither one went through. Murzyn, Jr. asked Schumacher why we have Ehlers look at the proforma for us. Schumacher stated it is standard procedure. Murzyn, Jr. stated it is difficult for him to approve an agreement, as Ehlers hasn't received all of the information from the developer yet. Schumacher stated the information would come at a later date once the restaurant has been established. Nawrocki felt there is some merit to having a restaurant on this corner, it is not a restaurant, it will be a sport bar. The Star Bar started out as a restaurant, and is now an entertainment center. Fehst stated he has to go to Champs in New Brighton to get goodfood, which irritates him to go to another City and get a good meal. Ericson Diehm stated we didn't put Haugland or Peterson- Williams Partnership through all of these questions. Nawrocki stated he doesn't approve of a sports bar, and doesn't particularly like champs. Sarna stated if the board passes the Preliminary Agreement tonight, they want to provide a restaurant that is up to date with other restaurants somewhere between Redstone and Applebee's. Economic Development Authority Meeting Minutes June 28, 2005 Page 60f7 Motion by Peterson, second by Ericson Diehm, to Approve the Preliminary Development Agreement with James J. Sarna, James A. Sarna and David M. Sarna for the redevelopment of the City owned property at 40th & University Avenue; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Nawrocki asked for the residents present to comment. Mike Gondek, 344 4dh Avenue, stated City Council members have been responsive to his questions, would like to see the Sarna's working a little closer with the residents. Joyce Shellito, 403 Summit Street, approximately15 years ago the Industrial Park was going to be revitalized, they fought for parking, her daughter has been partying with one of the Sarna's and told her that they are wonderful people. Residents have concerns with: 1) the possible noise; 2) will the residents be assessed for 51h Street; 3) the idea of a banquet hall, is needed in the City; 4) the walkway is important; 5) a holding pond for water is needed and 6) who will be responsible for renovation of the alley. The residents aren't against the project, but are asking the board to please look into these issues. Fehst stated he would check into the 51h Street assessing issue for her. Murzyn, Jr. stated he hoped she would trust the board to look into these issues. Upon Vote: Jindra- aye, abstained- Nawrocki, Ericson Diehm- aye, Kelzenberg- aye, Peterson- aye, Murzyn, Jr.- aye. Motion Carried. Set Public Hearin2: for Sale of Property to Huset Park Development Corporation Schumacher stated the EDA, through condemnation owns the property located at 450 381h Avenue (Steel Tech) and per the Contract for Private Development with Huset Park Development Corporation, the EDA would convey title of the property to the developer. In order to do this, the board must hold a public hearing. Motion by Peterson, second by Ericson Diehm, to set a Public Hearing for the Sale of Property to the Huset Park Development Corporation on Tuesday, July 26,2005 at approximately 7:00 p.m. in City Hall Conference Room 1. Upon Vote: Jindra- aye, Nawrocki- nay, Ericson Diehm- aye, Kelzenberg- aye, Peterson- aye, Murzyn, Jr.- aye. Motion Carried. Rvland Homes Marketin2: and Sales Trailer Streetar stated Ryland wants to put a sales trailer on the burger king site. They are requesting this because there really isn't any other spot to put it and what a wonderful way to market the City. The lease states through December but they called today to ask the board to extend it through January 2006. Ryland would be responsible to replace the site at the time of vacating it to its original status. The City Attorney has prepared the short-term lease agreement in the packet for review. Murzyn, Jr. asked if it would be likely that we have the option to move them off the site earlier than the time in the agreement. Streetar stated there is a 30-day termination clause in the contract to provide for this. Economic Development Authority Meeting Minutes June 28, 2005 Page 7 of7 Motion by Peterson, second by Jindra, to approve the lease authorizing Ryland Homes to place a temporary sales trailer at the Burger King site from June through January of 2006; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Nawrocki stated he didn't know of any other business the City would let use our property, we should charge Ryland a nominal fee. Peterson stated it is one of the cities mud holes, the developers would be putting down some blacktopping, and cleaning up the property for the City. Friendly Amendment: Kelzenberg offered a friendly amendment to the motion to change it to $1.00 per monthfor rental of the space. The originator agreed to the amendment. Upon Vote: Jindra- aye, Nawrocki- nay, Ericson Diehm- aye, Kelzenberg- aye, Peterson- aye, Murzyn- aye. Motion Carried. ADMINISTRATIVE REPORTS Community Visionin2: for the CBD Redevelopment Streetar introduced Kirsten Partenheimer, an intern that has joined our staff since Kim Green left. Kirsten is helping staff out with the CBD Redevelopment and other projects like sign enforcement. Partenheimer stated she wanted to update the board on the community visioningfor the CBD redevelopment project. Two meetings were held in May, one with business and property owners and the other with residents. Both groups discussed their issues, concerns, and hopes for the area, which will be used to identify the prevalent challenges and opportunities to be addressed in the next planning stage. Both groups identified fasffade improvements, street beautification, such as trees and flowers, proper street lighting and measures to increase safety would create an area residents could be proud of Participants cited blighted buildings, too little visibility on the street and poor visual appearances as additional concerns. 39th & Central Avenue Streetar stated the real estate agent for three parcels across from 39h and Central contacted him with interest in selling the properties to the City for redevelopment. ADJOURNMENT Motion by Nawrocki, second by Ericson Diehm to adjourn the meeting at 9:40 pm. All ayes. Motion Carried. Respectfully submitted, ~~ Cheryl Bakken Community Development Secretary H:\EDAminutes2005\6-28-2005