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HomeMy WebLinkAboutEDA AGN 11-22-05 CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E.. Columbia Heights. MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: wlVlV.ci.('olumbia-heights.mJl.IlS EDA COMMISSIONERS Don Murzyn Jr. Patricia Jindra Bruce Kclzenberg Gary L. Peterson Bruce Nawrocki Bobby Williams Tallllllcra Ericson Diehm ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING 7:00 P.M., TUESDAY, NOVEMBER 22, 2005 CITY HALL, CONFERENCE ROOM 1 AGENDA 1. CALL TO ORDER/ROLL CALL 2. PLEDGE OF ALLEGIANCE. 3. 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.) A. MOTION: Move to approve the consent agenda items as listed below: 1) Approve EDA Meeting Minutes for November 2. 2005. MOTION: Move to approve the minutes of the November 2, 2005 Special EDA Meeting as presented. 2) Approve the Financial Report and Pavment of Bills MOTION: Move to approve Resolution 2005-14, a Resolution ofthe Columbia Heights Economic Development Authority (EDA) approving the financial statement and payment of bills for the month of October, 2005. 4. ITEMS FOR CONSIDERATION A. Approve Extension of Sarna Development Agreement Motion: Move to Approve a 120 day Extension of the Development Agreement with David M. Sarna, James A. Sarna and James J. Sarna for the redevelopment of the City owned property at 40th & University, and fmihermore; to authorize the President and Executive Director to enter into an agreement for the same. B. Adopt Resolution 2005-15. Second Amendment to Contract for Private Development Motion: Move to Adopt Resolution 2005-15, a Resolution approving a Second Amendment to the 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. C. Adopt Resolution 2005-16. Approving the Consulting Services Agreement. with the Greater Metropolitan Housing Corporation (GMHC). which includes services from the Housing Resource Center and the Rehab Incentive Program for 2006 Motion: Move to Adopt Resolution 2005-16, 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; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIM1NA TE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE: PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER D. Adopt Resolutions 2005-17 and 2005-18. 2006 Bude:et and Levy Motion: Move 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. Motion: Move 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. E. 3919 Central Avenue (Mady's) Purchase Offer Discussion 5. ADMINISTRATIVE REPORTS 6. ADJOURNMENT Walter R. Fehst, Executive Director H:\edaAgenda2005\11-22-2005 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 patticipate 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. ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES NOVEMBER 2, 2005 CALL TO ORDERlROLL CALL President, Murzyn, Jr. called the meeting to order at 7:04 p.m. Present: Don Murzyn Jr., Patricia Jindra, Bobby Williams, Bruce Nawrocki, Tammera Ericson Diehm, Gary L. Peterson and Bruce Kelzenberg PLEDGE OF ALLEGIANCE CONSENT AGENDA Approval of Minutes Financial Report and Pavment of Bills Nawrocki asked what account #201-42400 is usedfor. Streetar stated under account 42400 it is inspections, licenses, some of his time, and cher 's, all of Jeff, Lany and Shelley's time, under 46310 is his, randy, kirsten and cher's time, and that some ofcher's and his comesfrom Parkview Villa budget also. Nawrocki asked if anyone's time comes from CDBG. Streetar stated it is an account to transfer funds received fi'om Anoka County and then goes into the redevelopment project account. Nawrocki asked what the checkfor Dahlgren Shardlow and Uban was for, Streetar stated it was for Jennifer Haskamp and Perry Thorvig's time in the interim of hiring a full time planner. Motion by Ericson Diehm, second by Williams, to adopt the consent agenda items as listed. All ayes. Motion Carried. DISCUSSION ITEM A. 39th & Central Redevelopment Streetar stated this discussion item is to update the EDA on the redevelopment of the 39th and Central Avenue block, as well as request direction for the next steps. The City Council established in January 2002 that this area was a top redevelopment goal. The project area includes the Burger King, Mady's Retail Center, Bowling Alley, and Columbia Heights Rental properties. The planning process done by Dahlgren, Shardlow and Uban (DSU) included two components: 1) to solicit residents and businesses feedback on the redevelopment area; and 2) was to prepare four possible redevelopment concepts for the project area. All three of the properties have completed a Phase one environmental assessment, which is a historical review of the property to determine the likelihood of contamination. The Burger King property is contaminated primarily with construction debris and household garbage. There is a high probability that similar contamination extends south to the Mady's and Columbia Heights Rental properties also. Staff has applied to DEED for a grant to pay for the Phase 11 environmental assessment, which determines the extent of contamination and the most efficient method of remediation and costs associated with it will be completed in January or February of 2006. The cost of this investigation is approximately $62, 745. Any costs not covered by the grant will be covered by funds the City Economic Development Authority Meetiug Minutes November 2,2005 Page 2 of5 required the Nath Companies escrow for investigation and clean up at the time Burger King was acquired. The owners of both Mady's and Columbia Heights Rental have agreed to permit a phase II investigation of their property. A Tax Increment Financing eligibility assessment was preformed on all three properties to determine if conditions exist to establish a TIF district and it was determined that all three were blighted and subsequently qualifY for a 25-year redevelopment TIF district to be developed. The pictures in the packet of the Gateway Project in Shoreview, Silver Lake Village Project in St. Anthony, Golden Valley Town Square in Golden Valley, Excelsior and Grand in St. Louis Park and the Pines and Woodlake Center in Richfield all are successful redevelopment in-fill projects stajJwould like to arrange a tour sometime this monthfor the board. John Slack, DSU, stated they have some history in the area and are also working with the City of Hilltop. Streetar asked ifhe had any idea when we could see the Hilltop redevelopment concept. Slack stated the plan was presented last week and could get the documents to him. Two public hearings were held at the Library on May 161" and 191", where residents and businesses providedfeedback regarding the area between 37''' & 42nd Avenues along Central Avenue. Four of the top components for Negatives, Vision, Opportunities, and Issues that were discussed were: The Negatives were: a) competition from Apache businesses; b) safety; c) poor buildingfa9ade; and d) blighted buildings. The Visions were: a) vibrant business mix; b) a re-energized community with young families andfamily-focused areas such as parks and a community center; c) a viable retail and small business area through increased tax base and employment opportunities; and d) maintained old look in the area, reinforce character, and continuity along the street front. The Opportunities were: a) bring residents into the business district; b) attract people from outside of the community; c) needfamily restaurants/cojJee shops/American type restaurants; and d) practical stores/trendy restaurant/American type restaurant. In addition, four redevelopment concepts were prepared representing some possibilities for redevelopment, such as Urban Row townhomes, Flats, Townhomes, and Senior Rental units at market rate. All of these concepts are in the City's Comprehensive Plan Goals, which are to strengthen the image of the community, preserve and enhance the existing viable commercial areas, advocating high quality development and redevelopment within the community, providing a variety of life cycle housing opportunities and employment opportunities. Streetar asked Commissioners Nawrocki and Peterson if they had any comments to add, as they were at the meetings. Nawrocki stated most of the people at the meeting were business owners and that out of 35 people no one finding stands out. Streetar stated what that says is the people that came, care and are concerned. Nawrocki stated he was velY surprised to here they want parking inli'ont as years ago it was determined parking in the rear was much safer. Slack stated in urban areas they are making parking for shopping more safe and that he is a member of a group involved in working on ideas to promote people to walk and exercise more, thus moving the parking spaces a little farther away from the business promotes better health. Slack stated in Concept A it defines boundaries, one main access into the site, they looked at a pedestrian connection, sidewalks, enforcing connection to a public parking ramp, which is Economic Development Authority Meeting Minutes November 2, 2005 Page 3 of 5 under utilized, felt there was a needfor senior rental, especially as it is close to the clinic, churches, shopping mall, and drug store, provides access into the development, parking behind and along Central Avenue, some small businesses, offices, small restaurants, creates an amenity for the development, shared parking from both the side and behind the theatre, creating a new front door for the church and parking area that is shared, urban rowhouse models along the road, which utilizes the space currently unused behind the rental building, and incorporated a community garden. Slack stated in Concept B it is essentially the same, except they moved the housingforward and created a green space for residents behind the building, as they had concerns about parking on Gould and would possibly close off access to Gould, but still obtaining access for fire and police, and emphasizes shared parking. Nawrocki stated with this concept you are essentially eliminating an entrance to the bank and the parking ramp, which comes off of Gould. Peterson asked when you come west on Gould could you get through to the bank. Slack stated that is one of the things the concepts bring up, for discussion. Slack stated in Concept C he wanted to focus on continuing the street access through the site, for vehicles, it has generous sidewalks and boulevards, created more shared parking opportunities with the church and apartment building, and tends to open up the site and allow for more residents components. Slack stated in Concept D it is a long term concept, with building fronts along Central, expanded the road connection with a long term commitment, looks at the church and parking lot set back, shows urban townhome fiats enhancing the corner, works around the apartments, brings in the road connection, and creates shared parking. Murzyn asked what would we do with the church. Fehst stated it was a small church, with less than 100 members and there is another church in town that is looking to move, maybe they would consider moving to that location, it would certainly be something staff could look into. Peterson stated we should take out the apartments, not the church, as the apartment building has problems. Streetar stated when he met with the church members, they stated they wanted to see senior rental housing and had been talking about an expansion for youth, to their building. Loren Brueggemann, Sherman and Associates, stated as a developer, Concept C gives him the most interest, with more entrances, you could possibly add another row of urban townhomes, in his mind he sees the businesses need people, the homes have real urban appeal, with attached garages, greenelY, walkways, it would be very appealing to the mid-range baby boomers. Between now and 2010, what we call the normal household of the 2 adults, 2 child demographics will decline by 80,000 units over the entire United States, and the non- traditional household will increase by twelve million units, which is single adults, single adults with children, persons living as room mates, which likes to walk, has a tendency to have two homesteads, senior rental would be a good choice. He could also see some two-story houses, with two or four units connected. The idea today is to go into the housing market with Economic Development Authority Meeting Minutes November 2,2005 Page 4 of 5 different varieties of housing to attract all types of resident interests. Streetar stated there are two things staff would like the boards feedback on: 1) staff could arrange a tour sometime in November to a couple developments that are already established, if the board is interested; and 2) at this point staff would like to get direction to pursue developers. Streetar stated he has talked to Gene Mady, which was velY cooperative and would like to see a redevelopment in 12 months on the site. The owners of the Columbia Heights Rental went before City Council for approval to build a new facility behind White Castle, which was approved. They have since sent a letter to Council members stating they would like to stay where they are at, which brings up three issues: 1) the property is non-conforming, meaning they would not be able to stay at that site and expand; 2) they have a lot of outdoor storage that isn't allowed, and 3) they have been good to work with, made a decision to move once before, which is a better decision than flying to stay where they are at. Fehst stated one of their main problems was that they bought two acres and really only need one, so maybe we could help them out somehow. Streetar stated he has sent commercial companies to them, but nothing has developed. Williams asked if the garden area in Concept C is appealing to people, are they for sale and how many. Slack stated they felt the need to provide community gardens, which are extremely popular and there would be 20 homes, 10 on each side for sale. Murzyn stated if we got proposals for developing the site, those developers would do a market study to see what we should put there. Streetar stated if you wanted to go that route: 1) we would take these concepts as an idea to see what the board is most interested in; and 2) talk about what the community needs, as we know there is a need for senior rental housing and commercial, but felt it was important that who ever the EDA decides to work with, has a record of success. Murzyn asked if the board would like to set up a date to take a tour. Fehst stated it would be good to look at something after the last budget meeting on December 1 i", but if they wanted to go sometime sooner, that would be okay too. It was determined to set up the tour for Saturday, December ]7lh from JOam to Ipm. Streetar stated staff would make the arrangements. Murzyn asked ifwe should direct staff to prepare things for proposals. Nawrocki stated he was against more housing, would like to see more jobs created and wants to go on the tour first. Peterson stated there would be more commercial in two of the big buildings with this project. Peterson asked to have developers look at the apartments in that area for possible redevelopment in the future. Economic Development Authority Meeting Minutes November 2, 2005 Page 5 of5 ADMINISTRATIVE REPORTS Apache Theater Streetar stated he has recently talked to Geny Herringer, who is working with a develope/for the site, but hasn't had time to start any real plans yet. Industrial Park Schumacher stated we are a couple of weeks behind schedule, there are three crews working currently, afourth crew will be starting tomorrow, the plan is to put theftrst layer of blacktop on the round-a-bout and down to 5th A venue, they have two pads started, 16 permits have been pulledfor theftrst two buildings, they will try to work as much as they can before winter, 50 % of the pads are completed, the pilings are complete, a mamifactured wall will be going up next week. Phase 11- has received a lot of good response from DEED and Met Council after the groundbreaking, all of the out buildings have been removed, the back side of the found/y has started coming down. Phase lII- submitted the grant yesterday for the Grief Brothers property at $1. 886 million, which we are hoping to hear by the end of December if we have received the funding, there is a City webcam that can be accessed through our City website, that was purchased usingfundsfrom the 1. T. Department. 49th & Central Redevelopment Update Streetar stated Anderson Builders has been working with owners of LaCaberna, Car Wash and Taco Bell. Staff would like to have Anderson come to the EDA meeting in December to update the board on the redevelopment site. Other Businesses Williams reminded the board that they have committed to working on a Community Center with gyms if the school levy passes next week. ADJOURNMENT Motion by Kelzenberg, second by Williams to adjourn the meeting at 8:49 pm. Respectfully submitted, Chelyl Bakken Community Development Secretary H: lED Aminutes2005\l1- 2- 2005 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: November 22, 2005 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Cher Bakken BY: DATE: November 10,2005 BACKGROUND: The bound Financial Report for the month of October 2005 draft Resolution 2005-14 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. The reports cover the activity in the calendar (fiscal) year from January I through October 31, 2005. RECOMMENDATION: Staff will be available to answer specific questions. Ifthe 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 2005-14, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement and Payment of Bills for the month of October 2005. EDA ACTION: H:\EDAConsent2005\October Fin Rep 2005 EDA RESOLUTION 2005-14 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR AUGUSTAND PAYMENT OF BILLS FOR THE MONTH OF OCTOBER 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, the financial statement for the month of October 2005 and the list of bills for the month of October 2005 are attached hereto and made a patt 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 patt 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: Don Murzyn, Jr. President Attest by: Cheryl Bakken, Assistant Secretary H:\Rcsolutiolls2005\EDA2005-14 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: 4-A DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Approve Extension of Smna BY: Randy Schumacher BY: Development Agreement DATE: November 15,2005 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: November 22, 2005 BACKGROUND: The Columbia Heights EDA has entered into a Development Agreement with David M. Sama, James A. Sarna and James J. Sarna for the construction of a 6,000 square foot restaurant on the corner of 40lh & University. The developers have exhausted their original 90-day exclusive option/Development Agreement timeline, and are requesting an additional120-day extension. I have attached a letter submitted by the developer that outlines the tasks that have been completed in an attempt to satisfy the Development Agreement. In addition, staff has met numerous times with the developers to assist in the coordination and processing of technical issues associated with the project. Due to the complexities of this site, progress has been slower than expected. RECOMMENDATION: Staff recommends the Board approve a 120 day Development Agreement extension with David M. Sarna, James A. Sarna and James J. Sarna for the redevelopment of the City owned property at 40th & University area. RECOMMENDED MOTION: Move to Approve a 120 day Extension ofthe Development Agreement with David M. Sarna, James A. Sarna and James J. Sarna for the redevelopment of the City owned property at 40th & University, and furthermore; to authorize the President and Executive Director to enter into an agreement for the same. Attachments EDA ACTION: h:\consent Form2005\EDA Approve Extension of Sarna Dev. Agreement DAVID M. SARNA lAMES A. SARNA lAMES J. SARNA 2501 UNIVERSITY AVENUENE MINNEAI'OLlS, MINNESOTA 55418 Phone 612~ 782--6940 November 7, 2005 Economic Development Authority Randy Schumacher Development Director Ciyy of Columbia Heights Dear Sirs: We would like to apply for an extension of our Pre-Development Agreement with the EDA for 90 to 120 days, We have been actively performing the steps toward the Final Development Agreement but have been slowed by matters we cannot control. We will eventually be able to finish the transactions to complete all of the various parts of the agreement. Just to let you kuow what we have accomplished to this point, we have done the following! I, Kurth Surveyors has done a survey and is well into the putting together the final plat to make all of the lots into one parcel. Cost so far $7000,00+ 2. R. Nelson, Civil Engineer, has done the topography to show the ponding necessary for 10 year storms and the preliminary grading profile plus other matters as required, Cost so far$4oo0.00+ 3, Patrick Hines has done borings on the propertics to see the stability of the ground for constTIlction and some tests to sce what the pollution levels are, $ 2000,00+ to date. 4. Payments to the City of Colwnbia Heights for permits, variances, plat approvals and liquor license clearances for the bar. $6500,00+ 5, SSV Architects have done the preliminary drawings needed for approval by Zoning and Planning of the building, parking lot, signs and greenery, Cost to date over $25000,00 6. A preliminary agreement has been reached with Michael Gondek for an easement for acccss (0 his property.. These are some of the projects we have been working on to get the properties ready for the start of constTIlction. 7, Xcel Encrgy has been contacted and has given a price of over $25000,00 to move their power lines off the property, some onto the frontage road area which will be retaiued by MnDOT, 8, Centerpoint Energy costs to move a gas line from the frontage road to Lookout Place for ME Global will be $9000 to $10000.00. 9, Qwest moving of their lines will be $6000 to $7000.00 10, Soil correction for constTIJction will be approximately $30000.00 II Removal of bituminous materials and demolition of the building at 322 40th Avenue will be in excess of $25000,00, 13. The installation of an alley and sidewalk $15000,00+ 14, Relocation of access to ME Global's parking lot. Approximately $4000,00, 15. The cost to increase the size of the storm line down Summit Street is $37400.00. There are other items we are still in the process of getting bids on, We are expecting the cost of tlle projects property including the soft costs and the $75000.00 we have agreed to pay the EDA will be over $325000.00. . Until MnDOT rele.1ses the University Avenue frontage road it will be difficult to move ahead willI the platting and surveying for final approval. Also the granting of an easement to the Energy Companies will hold up the final hard costs of the power lines, We have also reached a point where it is extremely difficult to do 'iny constTIlction because of the winter weatller. Hopefully an extension C<1n be granted so we can sign a final agreement and start constTIlction, Sincerely, David M. Sarna James A,. Sarna James J, Sarna COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Meeting of: November 22, 2005 AGENDA SECTION: Items for Consideration ORIGINATING DEPARTMENT: CITY NO: 4-B Community Development MANAGER'S APPROVAL ITEM: Adopt Resolution 2005-15, Approving BY: Robert Streetar BY: a Second Amendment to the Contract DATE: November 14,2005 for Private Redevelopment BACKGROUND Staff recommends the EDA amend the Contract for Private Redevelopment between the EDA and New Heights Development, LLC (the "redeveloper") for the purpose of the City acquiring a temporary construction easement and a permanent street right of way easement which are necessary for the construction of a public road needed to serve the Grand Central Lofts development. The redeveloper has made good faith attempts to acquire the land since March 2005, but the owner is unwilling to sell the approximately 4, 1 00 square feet of land needed for the public road. The first step is for the EDA to amend the contract pledging its assistance to acquire the property by condemnation. The second step is to have the City pass a condemnation resolution at the November 28 meeting. RECOMMENDATION: Staff recommends the adoption of Resolution 2005-15, approving a second amendment to the Contract for Private Redevelopment between the EDA and New Heights Development, LLC. RECOMMENDED MOTION: Move to Adopt Resolution 2005-15, a Resolution approving a Second Amendment to the Contract for Private Redevelopment between the Columbia Heights Economic Deveiopment Authority and New Heights Deveiopment, LLC; and furthermore, to direct the President and Executive Director to enter into an agreement for the same. EDA ACTION: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2005-15 RESOLUTION APPROVING A SECOND AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND NEW HEIGHTS DEVELOPMENT, LLC BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section I. Recitals. 1.0 I. The Authority and New Heights Development, LLC (the "Redeveloper") entered into a Contract for Private Redevelopment dated September 22,2003, as amended by First Amendment thereto dated April 26, 2005 (the "Contract"), setting forth the terms and conditions of redevelopment of certain property within the Redevelopment Project, generally located east of Central A venue, between 47th and 4901 Avenues. 1.02. The parties have determined a need to amend the Contract ftnther, to facilitate the acquisition of celtain easements needed for construction of streets to serve the development under the Contract, through acquisition of such easements by the City using its powers of eminent domain. 1.03. The Board has reviewed a Second Amendment to the Contract and finds that the execution thereof mId pelformance of the Authority's obligations thereunder are in the best interest of the City ffild its residents. Section 2. Authoritv Approval; Further Proceedings. 2.01. The Second Amendment to the Contract as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The President ffild Executive Director are hereby authorized to execute on behalf of the Authority the Second Amendment to the Contract ffild any documents referenced therein requiring execution by the Authority, ffild to carry out, on behalf of the Authority its obligations thereunder. 2.03. Upon execution of the Second Amendment, the Authority requests the City to promptly commence actions necessary to acquire the Easements (as defined in the First Amendment), using the "quick take" procedure under Minnesota Statutes, Chapter 117. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 22nd day of November, 2005. President, Don Murzyn Jr. ATTEST: Secretary- Cheryl Bakken S18-271123vl CL205-20 SECOND AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT THIS AGREEMENT, made on or as of the 22ud day of November 2005, by and between COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, COLUMBIA HEIGHTS, MINNESOTA, a public body corporate and politic (the "Authority"), established pursuant to Milmesota Statutes, Sections 469.090 to 469.1081 (hereinafter referred to as the "Act"), and NEW HEIGHTS DEVELOPMENT, LLC, a Milmesota limited liability company (the "Redeveloper"). WHEREAS, the Authority and the Redeveloper entered into that celtain Contract for Private Redevelopment dated as of September 22, 2003 (the "Contract") providing for the redevelopment of celtain property described as the Redevelopment Property in the Contract; and WHEREAS, under Section 4.1 (b) of the Contract, the Redeveloper is obligated to construct all Public Improvements (as defined in that section) located within or serving the Redevelopment Propelty, including the streets; and WHEREAS, the Redeveloper also entered into a Development Contract for Grand Central Lofts, Anoka County, Minnesota between the Redeveloper and the City of Columbia Heights ("City"), dated September 3, 2004 (the "Planning Contract"), which fmther specifies the Redeveloper's responsibilities regarding construction of streets and other improvements within the plat of the Redevelopment Propelty; and WHEREAS, Authority and Redeveloper entered into a First Amendment to Contract for Private Redevelopment dated as of April 26, 2005, which provided for acquisition of celtain easements required to construct a public road serving the Redevelopment Property: and WHEREAS, the Authority and Redeveloper have determined a need to acquire certain additional temporary and permanent easements on certain property adjacent to the Redevelopment Propelty in order to construct a public road within the plat; and WHEREAS, the Redeveloper has exhausted efforts to acquire such easements through direct negotiation; and WHEREAS, the patties have determined a need to amend the Contract in order to facilitate acquisition ofthe necessary easements. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. The Contract is amended add new Section 3.1A as follows: (a) The Redeveloper has determined that the temporary construction easement and permanent street right of way easement described in Exhibit A to this Amendment (together, the "Easements") are needed in order to construct the street running from 47'h A venue to 49th Avenue. Fmther, Redeveloper SJB-271119vl CL205-20 has exhausted effOlts to acquire the Easements in the City's name directly fTom the third pmty owner. Therefore, the Authority will request the City to acquire the Easements using its powers of eminent domain. The pmties agree and understand that the City will utilize so-called "quick take" powers under Minnesota Statutes Ch. 117 to the extent needed or desirable to enable the street improvements to proceed in accordance with the overall schedule for the Minimum Improvements. The parties will cooperate and consult with one mlother on any condemnation actions alld specifically on the final price to be paid in settlement of any condemnation action. (b) During the pendency of any City actions to acquire the Easements, the Redeveloper shall be required to promptly pay all expenses incurred by the Authority or City in connection with the prosecution thereof, including legal, survey, title, appraisal, relocation, process selvice, court costs, and similar expenses and all damages awarded to the owner of the propelty to the encumbered by said easements or which the City agrees to pay in settlement of the taking. The Authority shall, not more often than monthly during the pendency of the action, furnish the Redeveloper with a written itemized statement of all such expenditures. Redeveloper shall have two weeks fi'om the receipt of such statement to pay the same. (c) Not later than five days prior to any date on which the City is required to deposit any amount into court to obtain title and possession to the Easements, Redeveloper shall deliver to the Authority 100 percent of the amount of any such deposit or payment. The Authority shall then have the right, and subject to the terms and conditions hereof, the obligation to transfer such funds to the City in order to make such deposit or such payments. The Authority shall have no obligation to repay such funds received, deposited or paid pursuant to this Agreement should the redevelopment covered by this Agreement not be completed for any reason. (d) The Authority will instruct the City not to make the deposit and obtain title to and possession of the Easements unless: (i) There is no uncured default by Redeveloper under this Agreement; and (ii) The Redeveloper has provided the Authority with an undertaking in the form of a written agreement and security reasonably acceptable to the Authority (including but not limited to a letter of credit, escrow deposit, or lien) that will assure payment by the Redeveloper of 100 percent of any condenmation award for the Easements in excess of the previously deposited sums. Such security shall be in the amount adequate to ensure performance of the above-described obligations outstanding fi'om time to time and shall remain in effect according to its terms, alld in any event, until suitable and adequate substitute security is agreed to by the parties, or until the obligations secured thereby are fully performed. (e) The parties agree and understand that the Easements acquired by the City will run in favor ofthe City, and the Redeveloper will have no right, title or interest in the Easements. SJB-261749v2 CL205-20 2 IN WITNESS WHEREOF, the AuthOlity has caused tllis Amendment to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Redeveloper has caused tllis Agreement to be duly executed in its name and behalf on or as of the date first above written. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By Its President, Don Murzyn Jr. By Its Executive Director- Walter R. Fehst STATE OF MINNESOTA ) ) SS. COUNTYOFANOKA ) The foregoing instmment was acknowledged before me this _ day of 2005, by and , the President and Executive Director of the Columbia Heights Economic Development Authority, a public body politic and corporate, on behalf of the Authority. Notary Public S18-261749v2 CL205-20 3 NEW HEIGHTS DEVELOPMENT, LLC By Its STATE OF MINNESOTA ) ) SS. COUNTY OF Anoka ) The foregoing instrument was acknowledged before me this _ day of 2005 by , the of New Heights Development, LLC, a Minnesota limited liability company, on behalf of the company. Notary Public SJB-261749v2 CL205-20 4 EXHIBIT A TO FIRST AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT Temporary Construction Easement and Permanent Street Right of Way Easement PARCELB: That part of the NWl/4 of the SWI/4 of Section 25, Township 30, Range 24, Anoka County, Minnesota, described as follows: Commencing at a point on the west line of said NWI/4 of the SWI/4 383.00 feet south limn the northwest corner of said NWI/4 ofthe SWl/4; thence East at right angles to said West line a distance of 550.00 feet; thence South and parallel with said West line a distance of60.15 feet; thence West at right angles a distance of 195.67 feet; thence South and parallel to said West line a distance of89.85 feet; thence West at right angles a distance of354.83 feet to said West line of said NWl/4 of the SWI/4; thence NOlth along said West line a distance of 150.00 feet to the actual point of beginning. Which lies Easterly of the following desclibed lines: Conmlencing at the northwest corner of OUTLOT E, GRAND CENTRAL LOFTS, Anoka County, Minnesota; thence S 89035'12" E, along the north line of said Outlot E, a distance of 112.12 feet to the point of beginning of the lines to be described; thence N 26002'39" E, a distance of20.67 feet; thence northerly along a tangential curve, concave to the west, having a radius of250.00 feet, a central angle of25037'51", a distance of 111.84 feet and there terminating. Together with a 25.00 foot wide tempormy constmction easement, the easterly line of which is the above described lines. SJJ3-261749v2 CL205-20 A-I COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meetinc of November 22, 2005 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: 4-C DEPARTMENT: DIRECTOR Community Development APPROVAL ITEM: Adopt Resolution 2005-16, Approving the BY: Kirsten Partenheimer BY: Consulting Services Agreement with the Greater Metropolitan Housing Corporation DATE: November 15, (GMHC), which includes services from the 2005 Housing Resource Center for 2006. BACKGROUND: Since 2002, the EDA has partnered with GMHC to provide the residents of Columbia Heights with a variety of housing services to help maintain and improve their homes. These services are listed in section 1A Scope of Services in the attached Consultant Services Agreement. Many residents have taken advantage of these services and found them to be of great value. Since 2002, the total assistance to Columbia Heights residents in this very productive partnership include: Resident Assistance: . MHFA Fix Up Fund Loans 13 . Construction Consultation - Calls 230 . Construction Consultation -Inspection 103 . Construction Consultation - Scopes 56 . Homebuyer Information 10 . Mortgage Foreclosure Prevention Assistance 2 . Home Improvement Information 487 Staff recommends the Columbia Heights Economic Development Authority (EDA) approve a Consultant Services Agreement with the Greater Metropolitan Housing Corporation (GMHC) to provide housing services to Columbia Heights residents for the 2006 calendar year. The $15,000 annual fee gives residents access at no cost to the services of GMHC's Housing Resource Center, where they can receive information on nearly any topic related to housing and construction consultation, as well as apply for GMHC-administered programs, such as the Fix-Up Fund or the Columbia Heights Rebate Program. Staff recommends the EDA enter into an agreement with the Housing Resource Center at a cost of $15,000 for the year 2006. Funding is available form Fund 226 - Special Projects. The Consultant Services Agreement begins 1/1/2006 and ends 12/31/2006 and can be terminated by either party with 30 days notices. See attached agreement for further details. Jennifer Bergman, Housing Resources Coordinator, will be present at the November 22nd meeting to answer questions. RECOMMENDATION: Staff recommends the Adoption of Resolution 2005-16, approving the2006 Consultant Services Agreement with the Greater Metropolitan Housing Corporation (GMHC), and appropriating $15,000 from Fund 226 - Special Projects for the same. RECOMMENDED MOTION: Move to Adopt Resolution 2005-16, approving the2006 Consultant Services Agreement with the Greater Metropolitan Housing Corporation (GMHC), and appropriating $15,000 from Fund 226 - Special Projects for the same; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Attachments EDA ACTION: EDA RESOLUTION NO. 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 PROJETS FOR THE SAME. WHEREAS, the Greater Metropolitan Housing Corporation has agreed to provide consulting services. WHEREAS, the Columbia Heights Economic Development Authority through its Comprehensive Plan has established as a goal the preservation of the single-family housing stock. WHEREAS, the Greater Metropolitan Housing Corporation has provided housing preservation services since 2002. WHEREAS, the residents have found these services to be a significant assistance to help preserve and maintain their homes. THEREFORE, BE IT RESOLVED, that EDA approves 2006 Consulting Services Agreement with the Greater Metropolitan Housing Corporation and appropriating $15,000 from Fund 226-Special Projects for the same. Passed this 22nd day of November, 2005. Offered by: Seconded by: Roll Call: Don Murzyn, Jr. -President Walter R. Fehst, Executive Director CONSULTANT SERVICES AGREEMENT THIS IS AN AGREEMENT entered into the 1 st day of January, 2006, by and between the Columbia Heiqhts Economic Development Authoritv hereinafter referred to as the EDA, and the Greater Metropolitan Housing Corporation (GMHC), a nonprofit corporation organized and existing under the laws of the State of Minnesota, hereinafter referred to as the Consultant. WITNESSETH: WHEREAS, the Columbia Heights Economic Development Authority desires to hire the Consultant to render certain technical, professional, and marketing assistance in connection with such undertakings of the EDA. NOW THEREFORE, the parties hereto do mutually agree as follows: I. Scope of Services. The Consultant shall provide technical rehabilitation advisory services, loan administration and fund raising for the Programs as follows: A. Provide Housing Resource Center services, as directed by the EDA, to residents of Columbia Heights out of its HousingResource Center - Northeast office with scheduled visits to residences when needed and providing staff at City Hall as needed. These services include the following: 1. Administer home improvement programs including the MHFA Fix Up Fund, Community Fix Up Fund, the MHFA Rental Rehab program and the MHFA Rehabilitation Loan Program; 2. Provide construction management services including home inspections to homeowners considering rehabilitation, preparing scopes of work, educating homeowners on the construction bid process, evaluating bids and work completed to ensure quality and cost effective renovations and monitoring the construction process; 3. Provide housing information to residents including information on emergency assistance, housing rehabilitation, first time home buyers and limited rental information; 4. Assist the EDA in developing programs to purchase and rehabilitate homes. II. Term. This Agreement shall be effective from January 1, 2006 and shall continue through December 31,2006. This Agreement can be terminated by either party with a 30-day notice. III. Compensation. The fee for service by the Consultant will be $15,000. Payment of such fee shall be made by invoice from GMHC. IV. Insurance. During the term of this Agreement, the Consultant shall obtain and maintain workers compensation, comprehensive general liability, and automobile liabiiity insurance. Comprehensive generai liability insurance shall have an aggregate limit of $2,000,000. Upon request by the EDA, the Consultant shall provide a certificate or certificates of insurance relating to the insurance required. V. Indemnification. Each party shall indemnify and hold harmless the other party and it's officials, agents, and employees from any loss, claim, liability, and expense (including reasonable attorney's fees and expenses of litigation) arising out of any action of such parties in the performance of this Contract. VI. Assiqnment. This Agreement shall not be assigned, sublet, or transferred without the written consent of the EDA. VII. Conflict of Interest. The Consultant agrees to immediately alert the Executive Director of possible contractual conflicts of Interest in representing the EDA, as well as property owners or developers on the same project. Conflicts of interest may be grounds for termination of this Agreement. THIS AGREEMENT was adopted by the Columbia Heiqhts Economic Development Authoritv on the _ day of ,20_. ATTEST: Columbia Heights Economic Development Authority Its President - Don Murzyn Jr. Its Executive Director -Halter R. Fehst THIS AGREEMENT was accepted by day of ,20_. on the WITNESSES: GREATER METROPOLITAN HOUSING CORPORATION, a nonprofit Minnesota corporation Its President COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meetina of November 22,2005 AGENDA SECTION: Items for Consideration. ORIGINATING EXECUTIVE NO: 4-D DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Adopt Resolution 2005 - 17 and 2005- BY: Robert Streetar BY: 18, EDA Budget for 2006 DATE: November 9,2005 BACKGROUND: This memorandum presents the proposed 2006 Economic Development Authority (EDA) budget. The focus of the EDA since 2002 has been redevelopment of specific areas and the improvement of the housing stock. On November 7, there was held a joint City Council - EDA budget review, at which time the department as well as the EDA budgets was presented. Therefore, there will be no additional budget discussion. The EDA budget for 2005 is $246,331. The budget allows the continued impiementation of the EDA's priorities related to redevelopment, and housing. The EDA raises this amount through two ievies. The EDA levy raises $161 ,366, and the HRA levy raises $84,965. These levies fund the staffing and material needs of the Authority. Subsequently, the EDA must: 1. Pass a resolution approving and recommending the EDA Budget of $246,331 and a levy of $84,965, to the City Council for approval. 2. Pass a resolution approving and levying, subject to City Council approval, the special benefit levy of $161 ,366. RECOMMENDATION: Staff recommends Adoption of EDA Resolutions 2005-17 and 2005-18, adopting the 2006 budget and Levies, subject to approval by the City Council. RECOMMENDED MOTIONS: Motion: Move to adopt EDA Resoiution 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 approval of the same to the City Council for approval. Motion: Move to adopt EDA Resolution 2005-18, being a Resoiution of the Columbia Heights EDA approving a special benefit levy of $161 ,366, and recommending the same to the City Council. EDA ACTION: H:\Consent 2005\EDA Budget Resolutions ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS EDA RESOLUTION 2005-17 RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS (EDA) ADOPTING A BUDGET AND SETTING THE EDA LEVY. BE IT RESOLVED By the Columbia Heights Economic Development Authority (EDA) of Columbia Heights, Minnesota as follows: WHEREAS, the Columbia Heights City Council established the Columbia Heights Economic Development Authority January 8, 1996 pursuant to Minnesota Statutes 469.090 to 469.1081; and WHEREAS, the City Council has given to the EDA the responsibility for all development and redevelopment projects and programs; and WHEREAS, the EDA is authorized under State Statutes, Section 469.107 to levy a tax on its area of operation for the purposes authorized under State Statues 469.090 to 469.1 081, subject to consent by the City Council. NOW, THEREFORE BE IT RESOLVED BY THE HRA FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA THAT: 1. The EDA adopts and recommends to the City Council for approval a budget of $246,331 for year 2006. 2. The EDA adopts and recommends to the City Council for approval a levy of $84,965 for year 2006. The Executive Director is instructed to transmit a copy of this resolution to the City Manager and Finance Director/City Clerk of the City of Columbia Heights, Minnesota. APPROVED THIS_ DAY OF MOTION BY: ,2005. SECONDED BY: ROLL CALL: AYES: NAYS: Attest by: Walter R. Fehst, Executive Director Don Murzyn, Jr., President COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2005-18 AUTHORIZING THE LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF A BUDGET FOR FISCAL YEAR 2006 WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.1081 ("EDA Act") the City of Columbia Heights ("City") created the Columbia Heights Economic Development Authority (the "EDA"); and WHEREAS, pursuant to City Resolution 2001-62 and Ordinance No. 1442, the City Council granted to the EDA all powers and duties of a housing and redevelopment authority under the provisions of Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act"), except certain powers that are allocated to the Housing and Redevelopment Authority in and for the City of Columbia Heights (the "HRA"); and WHEREAS, Section 469.033, Subdivision 6, of the HRA Act permits the EDA and HRA, together, to levy and collect a special benefit levy of up to .0144 percent of taxable market value in the City upon all taxable real property within the City; and WHEREAS, the EDA desires to levy a special benefit levy in the amount of .0144 percent of taxable market value in the City; and WHEREAS, the EDA understands that the HRA does not expect to levy a special benefit tax for fiscal year 2006; and WHEREAS, the EDA has before it for its consideration a copy of a budget for its operations for the fiscal year 2006 and the amount of the levy for collection in 2006 shall be based on this budget. NOW, THEREFORE, Be It Resolved by the Board of Commissioners of the Columbia Heights Economic Development Authority: 1. The budget of $246,331 for the operations of the EDA presented for consideration by the Board of Commissioners of the EDA is hereby in all respects approved. Such budget includes the amount the EDA requests (by separate resolution) to be levied by the City under Minnesota Statutes, Section 460.107, together with the amount to be levied hereunder by the EDA under Minnesota Statutes, Section 469.133, subdivision 6. 2. Staff of the EDA are hereby authorized and directed to file the budget with SJB-236025vl CL205-3 the City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6. 3. There is hereby levied, subject to the approval of the City Council of the City, a special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, in the amount equal to the lesser of a levy at a rate of .0144 percent of taxable market value in City, or $161,366 with respect to taxes payable in calendar year 2006. 4. Staff of the EDA are hereby authorized and directed to seek the approval by resolution of the City Council of the City of the levy of special benefit taxes in 2006 and to take such other actions as are necessary to levy and certify such levy. Motion by: Second by: Attest by: Motion passed this day of ,2005. Walter R. Fehst, Executive Director Don Murzyn, Jr., President SJB-236025vl CL205-3 2 COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY Meeting of November 22, 2005 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: 4-E DEPARTMENT: DIRECTOR Community Development APPROVAL ITEM: 3919 Central Avenue (Mady's) BY: Robert Streetar BY: Purchase Offer Discussion DATE: November 16, 2005 BACKGROUND: The City Council and EDA identified the area along Central Avenue that includes the Burger King, Mady's and Columbia Heights Rental properties as a redevelopment priority. To that end the City has: . Acquired and demolished the Burger King Property; and . Performed Phase 1 Environmental Site Assessment on all three properties, which has show the presence of contamination; and . Performed Building Inspections on all three buildings, which has shown all three are blighted; and . Submitted a grant request for $50,000 to the Department of Employment and Economic Development to pay for the phase 2 environmental site assessments to be performed on all three properties in January/February of 2006; and . Developed redevelopment concepts for this area; and . Scheduled a tour in December for EDA members to visit similar concepts that have actually been constructed, occupied and are successful. Subsequently, 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 to purchase their building. Mr. Mady has indicated he has to take money from savings to pay the expenses, as the building is generating inadequate cash flow. Mr. Foss, the manager of two retails spaces, has indicated without a significant investment in the property he will 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 in the future. Staff believes this is a good opportunity to get control of the property on a friendly basis, and therefore recommends the EDA obtain an appraisal on the property, to include fixtures, and a determination of relocation benefits. This information would be the basis for the offer. RECOMMENDATION: Staff recommends the EDA direct staff to obtain the necessary appraisals as well as determine relocation benefits for the property located at 3919 Central Avenue, the Mady's property, for the purpose of making an offer to purchase. EDA ACTION: