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HomeMy WebLinkAboutEDA MIN 12-20-06 ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING DECEMBER 20, 2006 CALL TO ORDER/ROLL CALL/APPOINT SECRETARY PRO TEM President Don Murzyn Jr. called the meeting to order at 6:30 p.m. Present: Murzyn, Jindra, Kelzenberg, Peterson, Nawrocki, Willimns, Diehm PLEDGE OF ALLEGIANCE - recited DISCUSSION ITEMS President Murzyn wished everyone a happy holiday season. Adopt Resolution 2006-14, 2007 CDBG Application Bob Streetar, Community Development Director, indicated the City was awarded $974,000 for the parking deck and an additional $147,000 for industrial park cleanup. Randy Schumacher, Community Development Project Manager, indicated that annual Block Grant applications are through Anoka County and through a competitive application. Seven grants have been received in the last five years. The project on 3ih and Central was the purchase of the Beecroft building and two non- conforming single family homes. Staff has met with the Puerta Del Sol owner that is now interested in developing this property. The wig shop is going out of business. Schumacher stated that we are looking to demo that building and eventually the Puerta Del Sol building. Ifwe can secure dollars for demo it will keep redevelopment costs down. We are also requesting $25,000 to supplement our Comprehensive Plan process this coming year. The application would be for $55,000 demolition on 3ih and Central and $25,000 for the Comprehensive Plan. Murzyn asked what the Comprehensive Plan process would cost. Fehst stated there is $50,000 in the budget for contractor costs. Streetar stated there is a public process cost and engineering issue costs. Nawrocki stated that Council approved $50,000 in the budget for the Comprehensive Plml, so this would double fund it. Streetar stated that the city amount could be reduced if this was received or as in 1991 and 2001 we could do a citizen survey to look at goals and issues. Nawrocki requested information on those surveys. Murzyn stated that the funds can be used for any qualifying project. Nawrocki questioned when the Puerta Del Sol building was set as a project. Streetar stated that Council included it in the 2002 goals they set. Nawrocki questioned why we would demolish the building ifthe owner is developing it. Streetar indicated that CDBG funds to help with demolition would be better than dealing with a request for TIF. Nawrocki asked what other projects were considered for funding and if this was the highest priority in the community. Streetar listed completed projects, current projects ffi1d projects not under consideration at this time and stated that this was taken from the Council's priority list. Nawrocki suggested the CDBG funds be used for housing rehabilitation. Fehst indicated this has been done before. Nawrocki indicated that the resolution allows Fehst to administer the funds and questioned if this authorizes him to buy property. Streetar stated that the resolution allows the City Manager to implement demolition. Nawrocki stated that we should rent out the building until we have a specific plan for the property. He felt that this project is only a staff priority. Murzyn stated the projects these funds could be used for are too numerous to mention. Diehm indicated that the County distributes the funds and we have the right, if priorities change, to take that to the county. Motion by Diehm, second by Williams, to adopt Resolution 2006-14, a Resolution authorizing application for the 2007 Community Development Block Grant program for demolition of the Beecroft and Puerta Del Sol buildings at 3710 and 3800 Central Avenue NE and funding for the City Comprehensive Plan. Upon vote: All ayes. Motion canied. Miscellaneous Schumacher stated that Anoka County funds received for the demolition of the Apache Theater need to be spent by February, and bids for demolition will be received a week from tomorrow. He requested that a special EDA meeting be held on January 8,15 minutes prior to the City Council meeting to award the low qualified bid. Murzyn indieated that would not be a problem. Nawroeki stated this is a speeial meeting and that item is not on the agenda and cannot be acted upon. Streetar stated this was just informational and that a speeial meeting will be requested. Murzyn asked that the notice be sent out. Nawrocki requested a copy of the Met Council projeet approval. Adopt Resolution 2006-13, Special Legislation Streetar indicated that at the last EDA meeting a memo was distributed describing housing conditions in our. city, going back through surveys, and history of our fir" and utility depmiments. It indieates there is a significant part of our housing stock that is in fair or poor condition, with most existing between Central and 45th. There has been declining resources to do housing rehabilitation. Streetar suggested bringing resourees in to provide housing grants and low interest loans, to buy blighted property, and help with contamination costs on the Mady's projeet, that the City establish or extend the A3/C7 TIF district for up to 25 years. That would generate up to $16,000,000 over twenty-five years. This type of thing was used in the 1990's to build Parkview Villa South. He read from the Mareh 14, 1990 City Council minutes regarding the need for redevelopment funds for senior housing. There is a different need today with 5,700 homes that need improvement. Streetar stated that the impact to the average taxpayer with a $168,000 home would be $29.33. He referred to cOlmnents in the 1990's regarding funding loss to the county and school distriet and stated that these funds were raised by the City and the EDA. Murzyn stated the major issue raised every year is the condition of our housing stoek. What we have done for housing improvements has been overall very insignifieant. Motion by Peterson, second by Williams, to adopt Resolution 2006-13, a Resolution of the Columbia Heights Economie Development Authority (EDA) authorizing staff to pursue special legislation that would establish a substantial and long term funding source by extending the term of the A3/C7 Downtown Tax Inerement Distriet for an additional twenty-five years, and use the funds to provide I-Iome Rehabilitation Grants and Loans, to aequire and demolish blighted or vaeant residential properties, and remediate eontamination. Nawrocki deseribed the history of Park view Villa and eoncerns that it would be Section 8 housing. Nawroeki stated his eoneern that this has reeeived no public diseussion, or been in the newspaper or on cable. He questioned where areas A 7 and C3 and stated this would be for another 25 years, and this is tax dollars that people could have expected to gain. He indicated that School District #13 and Anoka County would not be happy about this, as they could have expected to draw on the funds for their projects. Fehst stated this is to begin the process and discussion. This is to seek authorization to establish resources to reach our goal to improve housing. Steve Bubul, Kemledy and Graven stated there would be discussion at the Legislature and then the City would begin the normal process of EDA meetings, public notice, and notice to the County and School District. Streetar indicated that we are doing less for residents than we did for seniors in the 1990's. He stated again that the amount not gained by residents would be $29.33. Murzyn stated that the impact is minor compared to the need. The time for input from the public is when you have information available. Kelzenberg stated that we have done nothing for our housing stock and we need to do something. Houses are going down in value. Residents elected us to make decisions and this is a good idea. Peterson called for the motion. Nawrocki asked to be shown where the area is. Streetar pointed out the area included on a map. Upon vote: Williams, aye; Nawrocki, nay; Kelzenberg, aye; Peterson, aye; Dielun, aye; Jindra, aye; Murzyn, aye. 6 ayes - I nay. Motion carried. ADJOURNMENT Motion by Peterson, second by Kelzenberg, to adjourn the meeting at 7:09 p.m. Upon vote: All ayes. Motion carried. ~<~(>C~ LJltr_~_.~___ Patricia Mnscovitz, CMC Deputy City Clerk/Council Secretary