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HomeMy WebLinkAboutEDA MIN 07-25-06 ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES July 25, 2006 CALL TO ORDERIROLL CALL President, Murzyn, Jr. called the meeting to order at 7:00 p.m. Present: Don Murzyn Jr., Patricia Jindra, Bobby Williams and Bruce Nawrocki, Tammera Diehm, Gary L. Peterson and Bruce Kelzenberg PLEDGE OF ALLEGIANCE CONSENT AGENDA Minutes of May 23rd and July 10th, 2006 meetings Financial Report and Payment of Bills for May and June 2006, Resolution 2006-06. Nawrocki asked on the May financial reporl, what is the EDAM charge for. Streetar stated that is the Economic Development Authority Conference that Schumacher and he attended. MOTION by Williams, second by Jindra, to approve the consent agenda Items #3 and #4 as listed. All ayes. Motion Carried. BUSINESS ITEMS Lease Aqreement between EDA and Michelle Binqham Schumacher stated this is a consideration of a lease between the EDA and Michelle Bingham for a beauty salon at the old Beecroft building on 3710 Central A venue. The building was purchased in 2003 for redevelopment along with two homes just south of it. Bingham is a Columbia Heights resident and a hair salon owner in the City since 1980. She would like to lease one of the units in the Beecroft building from the City as her landlord is requested her to move out by July 1 ih due to expanding his dental offices at 425 40tli Avenue. Bingham would have to install a shampoo sink, remove carpet, remove a portion of the suspended ceiling, paint and clean the unit prior to occupancy at her own expense. This building is in a redevelopment area of the City, therefore, the lease is set up on a month-to-month basis, commencing on July 26th, rent at $625/month, she would pay for gas, electric and all City utilities, and wouldn't be allowed to make any additions or improvements without a building permit to the unit. The lease agreement has been reviewed and approved by attorney Mike Norlon, with Kennedy & Graven and Bingham has reviewed and agreed to the terms of the lease. Staff recommends approval of the lease agreement. Nawrocki asked how many square feet is the unit and how did they come up with the cost. Schumacher stated it is about 900 square feet and that on our recent appraisal of properly along Central Avenue was $8.30/sq ft. Nawrocki asked how much does the other tenant pay. Schumacher stated staff has discussed that lease and would be bringing it to the EDA, so we have two similar leases for that building. Streetar stated Economic Development Authority Meeting Minutes July 25, 2006 Page 2 of3 the current rent is about $935/month without utilities, and that the tenant was in the building at the time we bought it. What we are presenting to Bingham is that we collect the rent and she pay the utilities because there is more of an incentive to watch the utility use rather than base it on a flat fee. Nawrocki stated Mike Erlandson, who is running for office called him looking for a place for his campaign office, he then talked to Streetar, who said it would be approx. $1,OOO/month. Streetar stated when he quoted him the $1,OOO/month it was with rent and all the utilities included. Jindra asked, if there wasn't some asbestos issues with the property. Schumacher stated there wasn't any in that building. Williams asked why we pay for insurance on the building, doesn't the renter pay insurance. Schumacher stated the renter pays a different type of insurance, which is for their property only, and we pay for the building and grounds. Motion by Peterson, second by Williams, to approve the lease agreement between EDA and Michelle Bingham. All ayes. Motion Carried. ADMINISTRATIVE REPORTS Activity Center Partenheimer stated the newsletter has been delivered to all the Columbia Heights residents, all information is on the web site, the first open house will be tomorrow night, July 26 at tpm at Murzyn Hall. Nawrocki stated we have always had an activity center at Murzyn hall for residents since 1938, which is a viable activity center with all kinds of programs for kids, and seniors. The one thing that we don't have there is a basketball court. Sarna's Partenheimer stated the property has started to be developed, with excavating, soil corrections and preparations for demolition. Construction should start soon. 37th & Stinson Partenheimer stated over the next couple of weeks the developer, is preparing a redevelopment proposal with accompanying financial information and will be brought back to the EDA at a future meeting. 39th & Central Partenheimer stated staff would be meeting with Bruggemann next Monday to review his development proposal. Information should be available at the next EDA meeting. Williams asked why staff is going to meet with Bruggemann. Partenheimer stated they are developing plans. In the meeting a few weeks ago with staff, they asked questions on City codes and we provided them some information on utilities. The next meeting, Economic Development Authority Meeting Minutes July 25, 2006 Page 3 00 she believed was to talk about the potential plans. Grand Central Lofts Partenheimer stated on July 1 dh the EDA and City Council directed staff to apply for a Livable Communities Grant (LCDA) for funding a parking ramp to serve 47,698 feet of proposed commercial development. Park View Partenheimer stated Phase II clean up is complete and they are starting to build the first building, with one house sold site un-seen. A total of 64 townhomes have been sold. ADJOURNMENT President, Murzyn, Jr., adjourned the meeting at 7:15 pm Respectfully submitted, ~/~ Cheryl Bakken Community Development Secretary H :\EDAminutes2006\ 7 -25-2006