HomeMy WebLinkAboutEDA AGN 01-24-06
CITY OF COLUMBIA HEIGHTS
590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TOO (763) 706-3692
Visit Our Website at: wIVw.ci.colllmbia-heighls.nln.lls
EDA COMMISSIONERS
Don Murzyn Jr.
Patricia Jindra
Bruce Kclzcnbcrg
Gary L. Peterson
Bruce Nawrocki
Bobby Williams
Tanllllcra Ericson Diehm
ECONOMIC DEVELOPMENT AUTHORITY
REGULAR MEETING
IMMEDIATELY FOLLOWING THE 7PM HRA MEETING, TUESDAY, JANUARY 24, 2006
CITY HALL, CONFERENCE ROOM 1
AGENDA
1. CALL TO ORDER/ROLL CALL
2. PLEDGE OF ALLEGIANCE.
3. OATH OF OFFICE
4. ELECTION OF OFFICERS
President
Vice President
Secretary
Treasurer
5. CONSENT AGENDA.
(These items are considered to be routine by the EDA Board of Commissioners and will be enacted
as part ofthe Consent Agenda by one motion.)
A. MOTION: Move to approve the consent agenda items as listed below:
1) Approve EDA Meeting Minntes for November 22. 2005.
2) Approve the Financial Report and Pavment of Bills
Motion: Move to approve Resolution 2006-01, a Resolution of the Columbia Heights
Economic Development Authority (EDA) approving the financial statement and payment of
bills for the months of November and December, 2005.
6. ITEMS FOR CONSIDERATION
A. 39th & Central. Columbia Heights Rental
Motion: Move to authorize staff to meet with the owners of Columbia Heights Rental to
determine if a friendly negotiated sale could be accomplished, as well as obtain the necessary
appraisals to prepare a future acquisition offer.
5. ADMINISTRATIVE REPORTS
6. ADJOURNMENT
Walter R. Fehst, Executive Director
H:\edaAgendaZ006\1-24-2006
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 pmlicipate in all EDA
services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the
request is made at least 96 hoUt's in advance. Please call the EDA Secretary at 706-3669 to make arrangements
(TDD 706-2806) for deaf or hearing impaired only.
EQUAL OPPORTUNITY EMPLOYER
OATH OF COMMISSIONER OF
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
COLUMBIA HEIGHTS, MINNESOTA
I, Patricia Jindra , do solemnly swear that I will
support the Constitution ofthe United States and of the State
of Minnesota and will faithfully discharge the duties of the
office of Commissioner of the Columbia Heights Economic Development
Authority, Columbia Heights, Minnesota, according
to the law and to the best of my judgment and ability, so help me God.
I do further swear that I am, and was at the time of my appointment,
a resident of Columbia Heights, Minnesota.
(s)
Subscribed and sworn to before me this
day of
2006.
(s)
Notary Public
My commission expires:
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: January 24, 2006
AGENDA SECTION: ORIGINATING EXECUTIVE
NO: 4 DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Election of Officers BY: Cher Bakken BY:
DATE: January 18,2006
BACKGROUND: The Bylaws of the Columbia Heights EDA specify in Section I, Officers that the
President, Vice-President, Secretmy, and Treasurer be elected annually.
We have attached a Transcript of Proceedings outlining the process for nomination of persons to the
various offices.
RECOMMENDATION: Move to cast a unanimous ballot nominating and appointing
for President,
President,
Treasurer.
for Secretmy;
for Vice
for
for Secretmy;
Move to cast a unanimous ballot nominating and appointing
for Vice President;
for Treasurer.
RECOMMENDED MOTION:
for President;
Attachment
EDA ACTION:
H:\consent Form2006\EDA Election of Officers-EDA
EDA ELECTION PROCEDURES
. We will know have the Election of Officers.
. Nominations are know being taken for the oftlce of (Office).
(After a nomination is made)
l.
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.
elected as (Office).
6. The chair declares
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
REGULAR MEETING MINUTES
NOVEMBER 22, 2005
CALL TO ORDERlROLL CALL
President, Murzyn, Jr. called the meeting to order at 7:03 p.m.
Present:
Don Murzyn Jr., Patricia Jindra, Bobby Williams aud Bruce Nawrocki, Gary L.
Peterson aud Bruce Kelzenberg, Tammera Ericson Diehm arrived at 7:34 pm
PLEDGE OF ALLEGIANCE
CONSENT AGENDA
Approval of November 2. 2005 Minutes
Financial Report and Pavment of Bills
Nawrocki asked what are other financing uses. Streetar stated it was the EDA le.vy. Pehst stated
it goes in and out of the account.
MOTION by Williams, second by Peterson, to adopt the consent agenda items as listed. All
ayes. Motion Carried.
ITEMS FOR CONSIDERATION
Extension of Sarna Development A!!:reement
Schumacher stated the EDA entered into a Development Agreement with the Sarna's for the
construction of a 6,000 square foot restaurant on the corner of 40th & University. The
developers have exhausted their original 120-day time line and are requesting a 120-day
extension.
Nawrocki asked when did the original agreement expire. Schumacher stated it expiredjust after
the last EDA meeting.
Motion by Peterson, second by Kelzenberg, to approve a 120 day extension of the Development
Agreement with David M Sarna, James A. Sarna aud James J. Sarna for the redevelopment ofthe
City owned property at 40th & University, aud furthermore; to authorize the President aud
Executive Director to enter into au agreement for the same. All ayes. Motion Carried.
Resolution 2005-15. Second Amendment to Contract for Private Development
Streetar stated the developer, Bruce Nedegaard has made many attempts since March to acquire
the land located at 4811 Central Avenue, known as BW3, Btiffalo Wild Wings, but the owner is
unwilling to sell the approximately 4,100 square feet of land that sits on top of a hill, which is
neededfor a temporary construction easement and a permanent street right of way easem?ntfor
the construction of a public road needed to serve the Grand Central Lofts development. There
are two steps the EDA needs to perform: 1) amend the contract pledging assistance to acquire
the property by condemnation, and 2) have the City Council pass a this by resolution at their
November 28th meeting.
Economic Development Authority Meeting Minutes
November 22,2005
Page 2 of6
Murzyn asked if anyone from BW3 said why they aren't willing to sell this portion of property.
Streetar stated he had talked to the landowner, who said they are basically using this as
leverage.
Kelzenberg stated he thought BW3 was going to move out of the City. Streetar stated he hasn't
heard anything from them. Nawrocki ask how long their lease is for and what are we asking in
dollars. Streetar stated he did not know and that it is about $31,000, which Nedegaard would
pay back in full to the City per the Development Agreement.
Nawrocki asked when we did the condemnation for the savers property, didn 'tthat include this
property also. Streetar stated it did not.
Motion by Williams, second by Kelzenberg, a Resolution approving a Second Amendment to the
Contract for Private Development between the Columbia Heights Economic Dev.elopment
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.
Resolution 2005-16. Approvine ConsuItine Services Aereement
Partenheimer stated we have contracted the Greater Metropolitan Housing Corporation for the
past four years to provide a variety of housing services to maintain and improve homes. The
contractfor 2006 is $15,000.
Jennifer Bergman, GMHC stated, since 2002 the EDA has partnered with GMHC to provide
Columbia Heights residents with a variety of housing services to maintain and improve their
homes. They provide three things to the City: 1) housing information, which is anythingfrom
mortgage foreclosure prevention, home buyer information, home improvement information,
rental iriformation, emergency assistance, etc and 2) construction consultation, as they have a
construction manager on staff, who goes out to meet with homeowners, makes recommendations
on how to fix up their home, helps owners prioritize their work, writes a scope of work, provides
them with a contractors list, monitors the construction, and sometimes provides a mediator when
the contractor and homeowner can't come to an understanding. To date they have provided 164
construction consultations, administer a number of loans to residents like the MHFAfix upfund,
Community fix up loan, Rental rehab loan, Homeowner Rebate Program. Also, she was also at
the housingfair and has done a cable shoot for the City website.
Nawrocki asked how many residents have they assisted. Bergman stated 694 since 2002, and
189 this year as of the end of October.
Streetar statedfunding is available from Fund 226-Special Projects, the agreement begins on
January 1" and ends on December 31, 2006, and can be terminated by either party with 30 days
notice, therefore, staffrecommends approval of the agreement with GMHC. .
Streetar stated he would like to suggest the board amend the contract in two places; 1) add a
new number 2 to read: Continue to Administer tlte Home Rebate Program witlt funds
appropriated in 2005 and cltange tlte numbering to end witlt number 5. Also under Term it
Economic Development Authority Meeting Minutes
November 22, 2005
Page 3 of6
should read: if terminated by either party the EDA shall pay a prorated share of the $15,000
for services rendered as of the date of termination.
Streetar stated Cher and the Building Official have done a good job of directing residents to the
Housing Resource Center.
Motion by Peterson, second by Ericson Diehm, to Adopt Resolution 2005-16, a Resolution
approving the 2006 Consulting Services Agreement with the Greater Metropolitan Housing
Corporation (GMHC), and appropriating $15,000 from fund 226 Special Projects Fund for the
same, with the above mentioned amendments; and fmthermore, to authorize the President and
Executive Director to enter into an agreement for the same. All ayes. Motion Carried.
Resolution 2005-17 and 2005-18. 2006 Budget and Levv
Streetar stated the proposed 2006 EDA budget was reviewed at ajoin! City CoulJcillEDA
worksession on November 7'''. Since 2002, the focus has been redevelopment of specific areas
and the improvement of the housing stock in Columbia Heights. Staffrecommends adoption of
resolution 2005-17 adopting the EDA 2006 budget of$246,331 and a levy of$84,954 and
resolution 2005-18 adopting the EDA special benefit levy or HRA levy of$161,366 and
recommending approval by City Council.
Murzyn asked if this was the maximum we can levy. Streetar stated it was not, we have
approximately 39% in capacity, the HRA is maxed out and the EDA is about 61% and that the
way the EDA levy is determined is based upon the market value not the tax capacity.
Motion by Peterson, second by Kelzenberg, to Adopt Resolution 2005-17, being a Resolution of
the Columbia Heights EDA Adopting the 2006 Budget of$246,331 and a Levy of$84,965 and
recommending this Budget and Levy to the City Council for approval. All ayes. Motion
Carried.
Motion by Peterson, second by Ericson Diehm, to Adopt Resolution 2005-18, being a Resolution
of the Columbia Heights EDA approving and Levying $161,366 subject to approval by the City
Council. All ayes. Motion Carried.
3919 Central Avenue (Madv's) Purchase Offer Discussion
Streetar stated the City Council and EDA identified the area along Central Avenue that includes
Burger King, Mady's and the Columbia Heights Rental properties as a redevelopment priority.
The City has: 1) acquired and demolished Burger; 2) Performed Phase I Environmental Site
Assessments on all three properties, which show the presence of contamination; 3) performed
building inspections on all three, which showed they are blighted; 4) submitted a grant request
for $50,000 to DEED to pay for the Phase 1I environmental site assessments to be performed in
January or Februmy of 2006; 5) developed redevelopment concepts for this area; and 6) have
scheduled a tour in December for EDA members to take a look at similar concepts already
constructed Mr. Gene Mady and Doug Foss, co-owners of the Mady's building have verbalized
their desire to have the City make them an offer for their building. Mr. Mady stated the building
is generating an inadequate cashjlow. Mr. Foss, manager of two retail spaces, indicated
Economic Development Authority Meeting Minutes
November 22,2005
Page 4 of6
without a significantly investment in the property he would have difficulty renting the now vacant
space, and therefore, does not want to spend a lot of money to that end only to sell it to the City.
Staff believes this is a good opportunity to purchase the property on afriendly basis,
recommends obtaining an appraisal of the property to include fixtures, and determination of
relocation benefits, which would be the basis for the offer. Mr. [Jrett Mady is here tonight on
behalfofhisfather, Gene Mady and Doug Foss, who is the co-owner. The ownership has
expressed their interest in at least entertaining an offer to purchase by the EDA. Staffis
requesting direction to obtain an appraisal of land and the building, appraisal on fixtures, and
determine what relocation costs would be in the event of an offer to the partnership.
Nawrocki stated maybe we should ask them what they want for the property. Streetar stated we
aren't even close to purchasing the property, he is working off of what Mr. Mady and Foss have
told him, Mr Mady is interested in entertaining an offer, staff needs to know what makes sense.
Doug Foss stated 1) he isn't really enthused about selling the property, he was told he had no
choice in the matter; 2) his tenants were told they have anywhere from 12 to 24 months before
they would be moved out; 3) he was told within 18 months there is going to be a new building on
his property; 4) he has lost a tenant, as Mr. Streetar came acting like he was interested in
furniture and letting the tenant know how things are going around here, basically trying to stir
up trouble; 5) he has had the Salvation Army as a tenant for 10 years, they have paid over
$150,000 in property taxes and he came to find out they cannot expand into the vacant space as
somewhere along the way someone changed the ordinance to say they can't expand because they
are a consignment shop, which he was never notified about; and 6) he would feel a little better
about this transaction Ifhe could have a little trust in what is happening.
Streetar statedfor the record: 1) the loss of their tenant isn 'tfrom anything he has done; 2) the
reason the Salvation Army isn't aloud to occupy the vacant space is because it is a non-
conforming use, the council has indicated in the Zoning Ordinance they did not want to see the
expansion of discount or consignment shops any longer in Columbia Heights; 3) he would agree
with Mr. Foss that sometime ago we were on a track of 18 to 24 months for this project, but in
light of the Industrial Park and staffing changes it got delayed; 4) the outcome hasn't changed;
5) he has never gone in to speak to any business owner and told them they would out in 12 to 24
months, and would ask that the particular business owner come to this meeting to support that.
Mr. Foss stated he was speaking from what he has heard, he has tried to make efforts to make
the Salvation Army conforming and was told he could not change the ordinance, he would be a
much happier seller If the City worked with him. Murzyn stated this is something he would need
to address with the Planning & Zoning Commission, as they regulate the Zoning Ordinance.
Foss stated he was told by Streetar that one way or the other he isn't going to be able to run his
business there, that it has been slotted for redeveloped, a interested tenant called the City and
was told the property may not be usable in 12 to 24 months. Streetar stated we have not had any
phone calls that we have stated this to other than Bill Price of the Salvation Army who asked
about the site and was told that his use is non-conforming to our zoning ordinance, he was told
he would have our City Planner research it, send him a letter and copy to Mr. Foss by Friday.
Foss stated he was not aware of that conversation, but has received the letter.
Economic Development Authority Meeting Minutes
November 22, 2005
Page5of6
Brett Mady stated they have been in business since 1964, the bowling business has gone down,
with the extended time ji-ame for the redevelopment, word has gotten out that they are closing, he
takes 20 to 25 calls a week asking if they are still open, a lot of this comesji-om aformer mayor
that put an article in the Pioneer Press approximately 2 years ago stating the City was taking
over the property for redevelopment, he would like to see this happen one way or another, but
sooner than later.
Kelzenberg asked Foss if he was in agreement to sell sooner than later. Foss stated he has some
issues at this time, would entertain an offer if the price was right, but if we can't come to an
agreement, he would want it to come to an end
Nawrocki stated he would not support the same kind of process used to buy Burger King. Fehst
stated the EDA would be responsible to provide the owners with a reasonable, fair amount for
the property by law. Peterson stated they could come up with a purchase price, b.ut we still have
to do an appraisal.
Nawrocki stated Fehst talked about what our obligations are, our obligation is to the good
citizens of Columbia Heights as to how we use public dollars, felt we did not use good business
practice when we bought Burger King and certainly did not want to see us going through that
kind of practice again. Murzyn asked Nawrocki ifhe is saying that our attorney's representation
was wrong in how they directed us to do that. Nawrocki stated that wasn't what he said
Murzyn stated he did say that we purchased it based upon their value and what the attorney said
we should pay for that property and how we did it. Nawrocki stated we paid too much for that
property, in his mind. Peterson stated we owe it to the Mady's, Mr. Foss and our citizens as a
whole to do the right thing for the City.
Foss asked if the City is truly interested in the property. Fehst stated it was in the top 5
priorities the City Council set in 2002. Foss stated his understanding of the process to do the
appraisals is that the City has an appraisal done and they have one done, which would be paid
for by the City, is this true. Streetar stated if the City started condemnation procedures on your
property, that rule would apply, but since we aren't, but are trying to do this on aji-iendly basis,
that would not apply.
Motion by Peterson, second by Ericson Diehm, to direct staff to obtain the necessary appraisals
as well as determine relocation benefits for the property located at 3919 Central A venue, the
Mady's property, for the purpose of making an offer to purchase.
Upon vote- Nawrocki -nay, Jindra-aye, Ericson Diehm-aye, Kelzenberg- aye, Murzyn, Jr.- aye,
Williams- aye, Peterson- aye. Motion Carried.
ADMINISTRATIVE REPORTS
Industrial Park
Schumacher stated we have 25 permits pulled at this time for the Industrial Park, the
development of two complexes is well underway, in Phase 1I demolition of the foundry everything
is coming up clean, with no contamination.
Economic Development Authority Meeting Minutes
November 22,2005
Page 6 of6
Murzyn asked if the Miske's still own the envelope business over there. Fehst stated he sold the
property last year.
Other Business
Williams asked with La Caberna's Liquor licensing being renewed, is there any movement from
Anderson's on that. Streetar stated Anderson has had appraisals on all of the properties except
for Taco Bell, because they already have that, the car wash wants approximately a half a million
dollars, which is about $120,000 higher than what the appraisal came in, we told Anderson to
come back to the board with all of the appraisals, purchase costs, plans, numbers, evidence of
properties they have under control, etc in December or January. The owner of the exotic pet
store is renting out the building to Snap On Tools on a month-to-month basis until the property
is sold.
Sheffield
Williams stated he heard there are 8 properties for sale in the Sheffield developritent area.
Streetar stated yes there is 8 properties up for sale, we would have to sell 2 to 3 million in T1F
bonds with up to three years to set up a district, during that time the funds will capitalize and
that the City needs to move quickly on this.
Murzyn asked if City Council is intending to redevelop that area. Williams stated yes, they are
and that there was an article in the northeaster paper last week that brings back some old issues
and problems with the property that the board members should read.
ADJOURNMENT
Motion by Williams, second by Kelzenberg, to adjourn the meeting at 8:16 p.m. All ayes.
Motion Carried.
Respectfully submitted,
Cheryl Bakken
Community Development Secretary
H: \EDAminutes2005\ 11-22-2005
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: Janumy 24, 2006
AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE
NO: DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Financial Report and Payment of Bills BY: Cher Bakken BY:
DATE: January 18,2006
BACKGROUND:
The bound Financial Report for the months of November and December 2005 draft Resolution 2006-01
is attached for review. The enclosed Financial Report lists the Summary (white), the Check HistolY
(Green), the Expenditure Guideline with Detail (blue) and Revenue Guideline with detail (yellow) for
each fund. The reports cover the activity in the calendar (fiscal) year from January 1 through December
31,2005.
RECOMMENDATION:
Staff will 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 2006-01, Resolution of the Columbia Heights Economic Development
Authority (EDA) approving the Financial Statement and Payment of Bills for the months of November
and December 2005.
EDA ACTION:
H:\EDAConsent2006\NovemberDecember Fln Rep 2005
EDA RESOLUTION 2006-01
RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT
AUTHORITY (lmA) APPROVING THE FINANCIAL STATEMENT FOR NOVEMBER
AND DECEMBER 2005 AND I' A YMENT OF BILLS FOR THE MONTHS OF
NOVEMBER AND DECEMBER OF 2005.
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, thc financial statement for the months of November and December of2005 and the
list of bills for the months ofNovembcr and December of2005 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 ofthe 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 Hcights Economic Development Authority.
Passed this _ day of
,2006.
MOTION BY:
SECONDED BY:
AYES:
NAYS:
President
Attest by:
Cheryl Bakken, Assistant Secretary
1-1 :\Resolutions2006\ED^2006-0 1
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: January 24, 2006
AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE
NO: 6-A DEPARTMENT:EDA DIRECTOR APPROVAL
ITEM: 39th & Central, Columbia Heights Rental BY: Robert Streetar BY:
DA TE:January 20, 2006
BACKGROUND:
In January 2002, the City Council identified the area along Central Avenue that includes the
Burger King, Mady's Bowling Alley and Retail Center, and Columbia Heights Rental as a
redevelopment priority. To that end the following has been or is being accomplished:
. The acquisition and demolition of the Burger King.
. Phase 1 environmental site assessments on all three properties. The assessments have
indicated the likelihood of contamination.
. The City was awarded $47,059 to complete a phase 2 environmental assessment on all
three properties. Prosource, Inc. is performing the phase 2. The phase 2 will be performed
in February, and determine the extent of the contamination, and the best method and
associated cost to remediate the site.
. Tax increment-financing eligibility assessments on all three properties. The assessments
have determined all three properties are blighted.
. In response to the request by Mady's owners to make an offer to acquire their building, the
EDA is undertaking appraisals and relocation estimates in order to prepare an acquisition
offer.
. The City applied to Anoka County for $225,000 of Community Development Block Grant
(CDBG) funds to pay for the demolition of the Mady's building should the EDA acquire the
property.
. The City Council, with the assistance the planning firm of DSU, has developed 4 preliminary
redevelopment concepts as well as toured five successful redevelopment projects in
Richfield, Golden Valley, Shoreview, St. Anthony, and St. Louis Park.
In addition, Mayor Gary Peterson met with the owners of Columbia Heights Rental in December
2005. Subsequently, the Mayor reported the owners understand they will have to move. They
would like to know the time line for the redevelopment so they can plan their move.
Commissioners will recall that about a year and half ago, the City Council approved the Columbia
Heights Rental plan to move and build a new building behind White Castle.
Therefore, staff requests authorization to also meet with the owners of Columbia Heights Rental
to determine if a friendly negotiated sale could be accomplished, as well as obtain the necessary
appraisals to prepare a future acquisition offer.
In light of all that has been accomplished thus far, and that fact the owners are willing to
cooperate, negotiating a voluntary acquisition of the rental property will allow the redevelopment
to continue to move ahead in a timely fashion.
RECOMMENDATION: Staff requests authorization to meet with the owners of Columbia Heights
Rental to determine if a friendly negotiated sale could be accomplished, as well as obtain the
necessary appraisals to prepare a future acquisition offer.
RECOMMENDED MOTION: Move to authorize staff to meet with the owners of Columbia
Heights Rental to determine if a friendly negotiated sale could be accomplished, as well as obtain
the necessary appraisals to prepare a future acquisition offer.
EDA ACTION:
TO: EDA
FROM: Kirsten Partenheimer, Community Development Specialist
DATE: January 24, 2006
SUBJECT: January Updated of Community Development Activity
The following is an update of Community Development activity through mid January of 2006. For
background on projects, please see the memo titled "2006 Expected Community Development Activity,"
dated December 27, 2005. If you have any comments or questions you may contact me at 763-706-3674
or kirsten.partenheimer@ci.columbia-heights.mn.us or Robert Streetar, Community Development
Director, at 763-706-3672 or bob.streetar@ci.columbia-heights.mn.us.
ECONOMIC DEVELOPMENT AUTHORITY
37TH AND STINSON
Len Pratt of Pratt Homes has an option with Apache Theater owner Jerry Herringer to buy the site at 37'11
and Stinson Avenues, with the intention of redeveloping it. While the deal is still being negotiated, Mr.
Herringer has indicated that he would like to close by the summer of2006.
Sales at Silver Lake Village are showing that the market is not as deep for for-sale units as previously
anticipated, but a new market study commissioned by Pratt Homes concludes that markets for other
types of housing, such as senior apartments and townhomes, are still strong. Pratt is in the process of
drawing up new concept plans for 37'11 and Stinson, which are based on previous plans for the site, but
will include different housing options. Staff will meet with Pratt on February 7'11 to review updated
plans and will report back to the EDA at a later time.
39TH AND CENTRAL
On December 27, the Depmiment of Employment and Economic Development (DEED) awarded the
city $47,059 to conduct a Phase II Environmental Site Assessment to determine the depth and breadth of
contamination on the Burger King, Mady's Bowl and Retail Center and Columbia Heights Rental
properties. The repoli will include a clean-up cost estimate and a suggested course of action. The
$15,686 in remaining costs for the Phase II will be paid for from funds escrowed during the sale of the
Burger King site. ProSource Technologies, the environmental consulting firm, which has worked on the
industrial park for the past tlu'ee years and conducted the Phase I on the site, will begin the Phase II in
the next 30 days.
49TH AND CENTRAL
Due to legal troubles experienced by Udupi Cafe owner Nagappan Chettiar, the restaurant will be closed
for an indefinite amount of time. Staff is waiting to hear from Anderson Builders, who had entered into a
preliminary development agreement with the EDA, about how they want to proceed.
Please see the attached Star Tribune article by Chao Xiong from January 12, 2006, "Columbia Heights
cafe owner charged with hiding illegals".
HERITAGE HEIGHTS
The first citizens advisory committee (CAC) meeting for the renewal and redevelopment of the Heritage
Heights neighborhood took place on Wednesday, January 18th and was conducted by staff from the
planning firm of Dahlgren, Shardlow and Uban (DSU). Sixteen residents, along with Ruth Nelson, an
administrator from Hilltop, Bruce Nedegaard and a host of others with a stake in the project, attended
the meeting held at the Grand Central Lofts community center.
The meeting included presentations by Community Development Director Bob Streetar on the history of
the neighborhood and the city's renewal efforts to date, Chief of Police Tom Johnson with an update on
the positive outcome of the increased patrolling in the neighborhood and presentations by DSU staff on
demographic trends, market analyses and site and area valuations. Finally, participants had an
opportunity to hear about and look at concept plans for the proposed retail component of the Grand
Central Lofts project. Concluding the informational portion of the meeting, residents of the
neighborhood took pmt in an exercise that asked them to discuss what they feel are the issues,
opportunities, concerns and vision for the Heritage Heights neighborhood.
It was general consensus from residents that they are pleased with the initiative the city is currently
taking and implore the city to keep the project moving. They look forward to the next meeting, which is
scheduled for Wednesday, March 8 at 7 p.m. at the Grand Central Lofts community center. A joint
meeting with the City Council, EDA and Planning Commission will be scheduled for sometime in the
weeks following the second CAC meeting.
PARK VIEW
The Depmtment of Employment and Economic Development (DEED) and the Metropolitan Council
awarded the City $1,091,281 in Tax Base Revitalization Account (TBRA) funding for Phase III of the
Industrial Park. The $292,900 in Met Council funding was approved by the Community Development
Committee on January 10th and will go before the full council on January 25th for final approval. DEED
has already approved its $798,326 share.
The Industrial Park also received a $580,147 Livable Communities Demonstration Account grant from
the Met Council for a sidewalk, a multi-purpose path and lighting along Huset Parkway and around the
stormwater retention pond, as well as landscaping along Huset Parkway. This grant funding
recommendation will also go to the full Council for final approval on January 25th.
The City has requested that $34,941.13 of unspent CDBG money in Anoka County be reallocated to
cover acquisition and associated legal costs for the Kremer Davis property in the industrial park. Final
decisions regarding the reallocation of remaining funds will be decided at the Anoka County Board
meeting on January 24th and will be repolted at the EDA meeting that evening.
The preliminary plat for Phase II has been approved and will be submitted for final plat approval at the
February 7'h Planning and Zoning Committee meeting.
SARNA'S RESTAURANT
Jim Sarna, the developer of the proposed Sarna's Restaurant, has requested financial assistance related
to construction of his restaurant. Existing contamination may make redevelopment of the site
financially unfeasible without some sort of assistance. The City has requested that $150,000 of unspent
CDBG money in Anoka County be reallocated to this project for associated soil correction cleanup and
demolition costs. Final decisions regarding the reallocation of remaining funds will be decided at the
Anoka County Board meeting on January 24th and will be reported at the EDA meeting that evening.
YMCA/COMMUNITY CENTER
The YMCA indicates they are undergoing a strategic planning process and market study for their
company to determine where they will build future YMCA's. The outcome of that process will be
complete by the end of February. The YMCA indicated then they would have a better idea of a possible
partnership with the City of Columbia Heights. Staff will follow up at the end of February.
2006 EDA Members
Jindra, Patricia
4753 4th Street NE
Columbia Heights, MN 55421
Home: (763) 572-8447
Term Ends: January 6, 2006
Nawrocki, Bruce
1255 Polk Place
Columbia Heights, MN 55421
Home: (763) 571-5278
Work: (763) 571-1311
Term Ends January 3, 2008
Ericson, Tammera Diehm
5125 Sl. Moritz Drive
Columbia Heights, MN 55421
Home: (763) 574-2122
Work: (612) 604-6658
Term Ends: January 1, 2007
Kelzenberg, Bruce
1195 Polk Place
Columbia Heights, MN 55421
Home: (763) 574-1050
Term Ends January 1, 2007
Murzyn, Don Jr.
1300 Lincoln Terrace N.E.
Columbia Heights, MN 55421
(H) (763) 574-1516
(W)(651) 686-7770 X134
Term Ends: January 5, 2009
Williams, Bobby
4047 Cleveland Street NE
Columbia Heights, MN 55421
Home: (763) 788-1755
Work: (763) 788-1113
Term Ends: January 3, 2008
Peterson, Gary L.
3712 Lincoln Street NE
Columbia Heights, MN 55421
(H) (763) 788-7517
Cell: (612) 978-9858
Term Ends: January 1, 2007
ECONOMIC DEVELOPMENT AUTHORITY
2006 MEETING SCHEDULE
TUESDAY, JANUARY 24, 2006
TUESDAY, FEBRUARY 28,2006
TUESDAY, MARCH 28, 2006
TUESDAY, APRIL 25,2006
TUESDAY, MAY 23,2006
TUESDAY, JUNE 27,2006
TUESDAY, JULY 25,2006
TUESDAY, AUGUST 22, 2006
TUESDAY, SEPTEMBER 26,2006
TUESDAY, OCTOBER 24, 2006
TUESDAY, NOVEMBER 28, 2006
TUESDAY, DECEMBER 26,2006