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HomeMy WebLinkAboutEDA AGN 10-24-06 CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E" Columhia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Dill' Websile at: www.ci.columbia-heights.mll.lls AGENDA COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY October 24, 2006 7:00 p.m., Parkview Villa, 965 40th Avenue, Community Room B 1. Call to Order/Roll Call Don Murzyn Jr., President Patricia Jindra, Vice President Bruce Kelzenberg, SecretarylTreasurer Tammera Diehm Gary L. Peterson Bruce Nawrocki Bobby Williams 2. Pledge of Allegiance CONSENT AGENDA 3. Approve Minutes of August 22, 2006 4. Approve financial report and payment of bills for the months of August and September 2006, Resolution 2006-07 Motion: Move to Approve the Consent Agenda Items #3 and #4, as listed. BUSINESS ITEMS 5. Adopt Resolution 2006-08, Approving funding for Rehab Incentive Program Motion: Move to waive the reading of Resolution 2006-08, there being an ample amount of copies available to the public. Motion: Move to Adopt Resolution 2006-08, a Resolution approving funding for the Rehab Incentive Program to the Greater Metropolitan Housing Corporation (GMHC) in the amount of $35,000 from fund number 226, Special Projects Fund. 6. Redevelopment update 7. Adjourn The next regular EDA meeting will be Tuesday, November 28, 2006 at City Hall. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES August 22, 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 Approve Minutes of July, 2006 regular meeting and the Financial Report and Payment of Bills for the month of July on Resolution 2006-06. Motion by Peterson, second by Williams, to approve the consent agenda Items #3 and #4 as listed. All ayes. Motion Carried. BUSINESS ITEMS Redevelopment of 2101 37th Avenue. AKA The Apache Theatre Streetar stated in March the EDA entered into a Preliminary Development Agreement with Pratt Ordway Properties for the redevelopment of the Apache Theatre parcel. The initial plans for the site was for two, two to three story senior buildings. The first included between 45 and 65 assisted living units, with 15 serving memory care residents and the second building included between 45 and 65 independent senior units, where residents could purchase assisted living services as necessary. The City requested the plans be modified to sell approximately one acre of the land for a City Liquor Store adjacent to 3ih A venue and Hart Boulevard for approximately $506,000. At the August City Council work session, staff was directed to modify the proposal eliminating one senior building with the remaining building to include 64 units with 15 units serving memory care residents. The developer is requesting up to $115,000 of financial assistance to pay for the demolition of the Apache Theatre. Staff has secured $75,000 of CDBG funds from Anoka County and recommends reallocating $35,000 of the $200,000 CDBG funds the City received for the demolition of the Mady's and Columbia Heights Rental buildings, leavin~ $165,000 for the demolition. This funding would become available by September 30h. In summary staff is recommending three things: 1) approve the redevelopment concept; 2) authorize the reallocation of $35,000 of CDBG funds and 3) authorize staff to prepare a redevelopment agreement between the EDA and Pratt Ordway Properties, Inc. to be approved at the September 26th EDA meeting. Murzyn Jr. asked Bill Elrite, Finance Director how much square footage does the Liquor Store currently have. Elrite stated there was about 10,500 square feet. Murzyn Jr. stated it would be about the same size. Economic Development Authority Meeting Minutes August 22, 2006 Page 2 of 4 Williams stated he would like to see the City do something with the Hart Lake and Boulevard area, we have talked about this before but, nothing got done, maybe we could move the road back a little. Murzyn Jr. stated he had seen a proposal that did do that but was probably pretty costly and asked Pratt if this is something that could be built into the agreement. Len Pratt, Pratt Ordway Properties stated they saw the opportunity to reroute Hart Boulevard, which is under state funding, agreed that if their entrance to the senior building and the liquor store wouldn't change, this would work and would actually be a plus, but it would take time. Jindra stated, there are a lot of people in the apartments there, and asked how would they get out. Peterson stated they would have to straighten out the road. Nawrocki stated: 1) Hart Boulevard can't be a dead end as it is a state aid road and has to have an outlet; 2) in the memo it talks about the City Council work session August ih, staff was directed to prepare a purchase agreement for approval at a subsequent council meeting. At work sessions you don't make motions or decisions. Streetar stated that was correct, but you can give staff direction. Nawrocki stated 3) we were talking about purchasing the property from the dentist and gas station owners on University Avenue, which the dentist was willing to sell, why are we looking at this area. Peterson stated his understanding was that we were going to move ahead with this one, as it's a prime opportunity, certainly we are getting a fair deal out of the land and still want to move ahead with the one on Central also. Fehst stated he had advised council that right now it doesn't look to good, as far as the price of that property, we do have Welsh negotiating on our behalf with three property owners, but if for some reason that one got too expensive we could walk away from that one and continue to lease at our present site, and that the store on University isn't doing so well and if that is the case we would consider closing that one. Peterson stated the forecast is to make money on this project, if we go out of the liquor business down the road, we would still have a nice piece of property and could have a building to sell. Fehst stated we could use some technology to keep the maintenance costs down and Mark Ruff from Ehlers and associates has given us an indication that all of the studies they have done or seen have all resulted in increased sales. Murzyn Jr. asked if he has it correct, as far as the liquor store project, it is a concern of the City Council to vote on this. Diehm stated that was correct. Nawrocki asked why is the EDA talking about this tonight when this is a City Council decision. Streetar stated it is because the EDA has a Preliminary Development Agreement with Pratt Ordway for the redevelopment of the site. Williams asked who owns the little triangle parcel on the corner. Fehst stated it was the railroad. Peterson stated he has always thought we should have something like a train or something to celebrate the railroad, like other cities have. Motion by Peterson, second by Kelzenberg, to authorize the reallocation of $35,000 of CDBG funds, approve the redevelopment concept, and authorize staff to prepare a redevelopment agreement between the Economic Development Authority (EDA) and Pratt Ordway Properties, Inc. to be approved at the September 26, 2006 meeting. Economic Development Authority Meeting Minutes August 22, 2006 Page 3 of 4 Diehm asked Peterson and Kelzenberg if they would consider changing the motion to read "considered for approval on September 26th EDA meeting", instead of approved. The commissioners agreed to amend the motion. Amended motion by Peterson, second by Kelzenberg, to authorize the reallocation of $35,000 of CDBG funds, approve the redevelopment concept, and authorize staff to prepare a redevelopment agreement between the Economic Development Authority (EDA) and Pratt Ordway Properties, Inc. to be considered for approval at the September 26, 2006 meeting. Upon Vote: Jindra-aye, Nawrocki-nay, Kelzenberg-aye, Williams-aye, Peterson-aye, Diehm-aye, Murzyn Jr. -aye. Motion Carried. Murzyn Jr. stated he would like to close the meeting at this time to discuss the next agenda item and would re-open the meeting after discussion. Nawrocki asked what is the purpose of closing this meeting. Streetar stated he had talked to Steve Bubul, the City attorney, who stated the EDA could close a meeting without a vote. The meeting was then closed at 7:23 pm. The meeting was re-opened at 8:07 pm. Authorization to Negotiate ACQuisition of Madv's Retail Property bv the EDA Murzyn Jr. stated the board has discussed this item and asked if there were any comments or questions. Nawrocki asked where the money would be coming from. Streetar stated it would come from the Capital Equipment funds, inter fund loan from the City to the EDA. Motion by Williams, second by Peterson, to authorize staff to negotiate with the Mady- Foss Partnership. Upon Vote: Jindra-aye, Nawrocki-nay, Kelzenberg-aye, Williams-aye, Peterson-aye, Diehm-aye, Murzyn Jr. -aye. Motion Carried. ADMINISTRATIVE REPORTS Streetar stated that staff was contacted by Howe Leathers with the Lions Club who wanted to get the local Hispanic community involved with their organization. Staff gave them some ideas of community meetings and proposed meeting places to get them started. Williams stated he met the Mayor of Lino Lakes recently, who spoke highly of Randy Schumacher and that we should be proud to have him working in our City. Park View Schumacher stated the cleanup of Phase" is now complete and the first five building Economic Development Authority Meeting Minutes August 22, 2006 Page 4 of 4 pads have been constructed. Sewer and water will be completed in the next six to eight weeks. Ryland has sold 67 units in Phase I and 3 units in Phase /I to date. ADJOURNMENT Motion by Diehm, second by Williams, to adjourn the meeting at 8: 15 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H :\EDAm in utes2006\8-22-2006 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: October 24, 2006 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: 4 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Cher Bakken BY: DATE: October 15, 2006 BACKGROUND: The bound Financiai Report for the months of August and September 2006 draft Resolution 2006-07 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 1 through September 30, 2006. RECOMMENDATION: Staff will be available to answer specific questions. If the report is satisfactorily compiete, we recommend the Board take affirmative action to receive the Financial Report and approve the payment of bills. RECOMMENDED MOTION: Move to approve Resolution 2006-07, Resoiution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement and Payment of Bills for the month of August and September 2006. EDA ACTION: H:\EDAConsent2006\AugustSeptemberFin Rep 2006 EDA RESOLUTION 2006-07 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENTS FOR AUGUST AND SEPTEMBER 2006 AND PAYMENT OF BILLS FOR THE MONTHS OF AUGUST AND SEPTEMBER 2006. 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 months of August and September 2006 and the list of bills for the months of August and September 2006 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 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 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 Heights Economic Development Authority. Passed this _ day of ,2006. MOTION BY: SECONDED BY: AYES: NAYS: President- Don Murzyn Jr. Attest by: Cheryl Bakken, Assistant Secretary H:\Resolutions2006\EDA2006-07 fin August September 2006 ee Ina 0 CO er , AGENDA SECTION: Business Items ORIGINATING DEPARTMENT: EXECUTIVE NO: 5 Community Development DIRECTOR APPROVAL ITEM: Adopt Resolution 2006-08, Approving funding BY: Kirsten Partenheimer BY: for the Rehab Incentive Program DATE: October 17, 2006 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY M f fO t b 24 2006 Introduction Staff requests that the Columbia Heights Economic Development Authority (EDA) authorize $35,000 of funding for the Columbia Heights Rehab Incentive Program. This program promotes Goal 3, "Improve the City's Housing Stock," one of five goals established by the City Council in August 2004. The Council last allotted $35,000 to the program in 2004, but the money has been expended. The Greater Metropolitan Housing Corporation (GMHC) administers the program for the City and will continue to do so. Suzanne Snyder of GMHC will be available at the October 24, 2006 EDA meeting to answer questions. Background The Columbia Heights Rehab Incentive Program is designed to assist homeowners in the City in maintaining and improving their homes by providing a rebate to homeowners after an improvement has been completed. The upgrades foster a stabilization and revitalization of the City's housing stock. Homeowners of single- family or owner-occupied duplexes with a household income at 115% of the area median income or less are eligible to apply. Calculated as a percentage of total construction costs, a rebate payment of 10%, 12% or 15% may be granted, up to $3,000. Examples of eligible improvements include repairing or replacing dilapidated porches, roofs, retaining walls, siding, exterior steps or railings and heating, plumbing or electrical systems. Through a combination of City, Metropolitan Council and Minnesota Housing Finance Agency contributions, the Housing Rehab Program started in 2002 with $45,000 in funding. The Council funded the program again in 2004 in the amount of $35,000. Over the past four years, 62 households have benefited from the program and nearly $700,000 of private funds contributed to the preservation of the City's single-family housing stock. For every dollar the City contributed to the program, the community contributed an average of $8.76 in private investment. Total Number of Program Amount Program Rebates Funds Total Project Amount Leveraged Average Fundina Given Exaended Cost Leveraged per Dollar Rebate 2002-2004 $ 45,000' 30 $ 45,000 $ 478,738 $ 433,738 $ 9.64 $ 1,500 2004-present $ 35,000 32 $ 34,278 $ 295,160 $ 260,882 $ 7.61 $ 1,071 Total $ 35,000 62 $ 79,278 $ 773,899 $ 694,621 $ 8.76 $ 1,279 'MHFA, $22,500; City/Met Council, $22,500 Recommendation: Staff recommends the EDA fund the Rehabilitation Incentive Program in the amount of $35,000 from Fund 226, Special Projects Fund. Recommendation Motion: Move to waive the reading of Resolution 2006-08, there being an ample amount of copies available to the public. Recommended Motion: Move to Adopt Resolution 2006-08, a Resolution Approving funding for the Rehab Incentive Program to the Greater Metropolitan Housing Corporation (GMHC) in the amount of $35,000 from Fund 226, Special Projects Fund. EDA ACTION: C,\Oocuments and Settings\CCH-User\Local Settings\Temp\Housing_Rebate_Program2.doc EDA RESOLUTION NO. 2006-08 A RESOLUTION APPROVING FUNDING FOR THE REHAB INCENTIVE PROGRAM ($35,000) TO THE GREATER METROPOLITAN HOUSING CORPORATION (GMHC) 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 the EDA allocates $35,000 for the Rehab Incentive Program to Greater Metropolitan Housing Corporation from Fund 226, Passed this day of ,2006, Offered by: Seconded by: Roll Call: Don Murzyn, Jr. -President Walter R, Fehst, Executive Director MEMO TO: EDA FROM: Kirsten Parten heimer, Community Development Specialist DATE: October 18, 2006 SUBJECT: October Update of Community Development Activity The following is an update of Community Development activity through mid October of 2006, If you have any comments or questions you may contact Bob Streetar at 763-706-3672, ACTIVITY CENTER The Activity Center Advisory Committee (ACAC) met on September 13, 2006 to prioritize a list of amenities to be included for further study and potential sites, They include the former N,E,1. site, along Central Avenue in the Heritage Heights neighborhood and by the high school. The next step in the study process is to work with an architect on a feasibility study, BKV Group, a local architectural firm, whose lead architect on the activity center project was also the lead architect on the Andover YMCA Community Center, has received this information and will draft initial concept plans and cost estimates before meeting with the ACAC on November 9, 2006, On October 11, the ACAC met to discuss city and school financing options for the capital funding of a community center. Gerry Herringer, ACAC co-chair, will present an update to the City Council at a work session on October 23, 2006, Information from all meetings will be posted on the City's website at: http://www,cLcolumbia- heights,mn,us/departments/CommCenter,asp, Or, from the main page, click on "departments," "Community development" and then "Activity Center" under "Redevelopment Updates," SARNA'S The soil corrections at 40th and University are now complete and the power utilities have been relocated to the other side of University Avenue, The Sarna's Bar and Grill is on construction schedule and is expected to open for business in February, 39th AND CENTRAL Loren Brueggemann of Sherman Associates will present a development plan at the November 28, 2006 EDA meeting, GRAND CENTRAL LOFTS On July 10, the EDA directed staff to apply for Livable Communities Demonstration Account (LCDA) funding for a parking ramp to serve 47,698 feet of proposed commercial development. Out of 30 applications originally submitted, the City's application is one of 16 still being considered by the Livable Communities Advisory Committee, A final recommendation from the committee is expected to be forwarded to the Met Council on November 3 and the City may know as early as December whether it will receive funding for this project. PARK VIEW The cleanup of Phase II is now complete and the first five building pads have been constructed, Sewer and water are in and roads to the pads will be installed during the week of October 23-27, On October 19, the City will take bids for the demolition of the Greif building and the remaining outbuildings within Phase III. Bids will also be taken for soil cleanup. A recommendation to accept the bids will go to the Council on October 23, 2006. The City will be submitting a cleanup grant to DEED and Met Council in November for overruns on Phase I, as well as to fund the cleanup of an additional parcel on the north end of the project. Ryland has sold 77 units in Phase I and seven units in Phase II. A sales counselor reported that the market has picked up in the last month and that they have received positive responses from prospective buyers, who are also excited to start seeing homes in Phase II go up.