HomeMy WebLinkAboutEDA AGN 01-23-07
CITY OF COLUMBIA HEIGHTS
590 40th Avenue N.H.. Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692
Visit Our Website at: www.ci.columbia-heights.l1Ill.us
AGENDA
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
January 23, 2007
7:00 p.m., Parkview Villa, 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. Oath of Office
4. Election of Officers
President
Vice President
SecretarylTreasurer
5. Approve Minutes of November 28 and December 20, 2006, and January 8, 2007
6. Approve financial report and payment of bills for the months of November and
December 2006, Resolution 2007-02.
Motion: Move to Approve the Consent Agenda Items #5 and #6, as listed.
BUSINESS ITEMS
7. Adopt Resolution 2007-03, Elimination of Parcels from TIF District #1
Motion: Move to Adopt Resolution 2007-03, a Resolution approving the elimination
of parcels from the HRA Tax Increment Financing district Number 1, located within
the Central Business District Redevelopment project in the City of Columbia Heights.
8. Adjournment
The next regular EDA meeting will be Tuesday, 27, 2007 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
OATH OF COMMISSIONER OF
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHOIUTY
COLUMBIA HEIGHTS, MINNESOTA
I,
, do solemnly swear that I will
support the Constitution of the 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
2007.
(s)
Notmy Public
My commission expires:
@)
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: January 23, 2007
AGENDA SECTION: ORIGINATING EXECUTIVE
NO: 4 DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Election of Officers BY: Cher Bakken BY:
DATE: January 11, 2007
BACKGROUND: The Bylaws of the Columbia Heights EDA specify in Section 1, Officers that
the President, Vice-President, Secretary, 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, for
Vice President,
for Secretary;
for Treasurer.
RECOMMENDED MOTION: Move to cast a unanimous ballot nominating and appointing
for President; for Vice President;
for Secretary; for Treasurer.
Attachment
EDA ACTION:
H:\consent Form2007\EDA Election of Officers-EDA
EDA ELECTION PROCEDURES
. We will know have the Election of Officers.
. Nominations are know being taken for the office of (Office).
(After a nomination is made)
1.
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.
6. The chair declares
elected as (Office).
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
REGULAR MEETING MINUTES
November 28, 2006
CALL TO ORDERIROLL CALL
President, Murzyn, Jr. called the meeting to order at 7:08 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 October 24, 2006 regular meeting and the Financial Report and
Payment of Bills for the month of October on Resolution 2006-09.
Motion by Williams, second by Diehm, to approve the consent agenda Items #3 and #4
as listed. All ayes. Motion Carried.
BUSINESS ITEMS
Resolution 2005-10 and 2006-11. 2007 Budaet and Levv
Streetar stated on November 6 at the joint City Council and EDA budget work session
the budget was presented. Commissioners Jindra and Murzyn weren't present, but he
has talked with them about it, so since there is no further discussion by commissioners
tonight staff is recommending board approval of the resolutions.
Nawrocki stated the current levy for the EDA and HRA are $84,969 and $161,366, the
increase for the EDA is a 66% increase and the property tax levy and a 9% increase in
the HRA levy. Fehst stated this is part of the overall 2.1% levy. Nawrocki asked why
we are acting on this tonight. Fehst stated we pass this along to the City Council for
approval. Streetar the only additional costs we have are related to labor, which is about
$23,000 and $50,000 for the Comprehensive Plan, otherwise it is all the same.
Nawrocki stated we have approximately $155,892 cash balance at the end of 2005,
according to the report he received from finance, there should be a significant balance
left over this year, we should give the taxpayers the benefit of not charging them as
much. Streetar stated taxes are the lowest they can be on the median value homes in
the metropolitan area with the exception of two cities. Nawrocki stated I beg your
pardon, I think you gave to the mayor the 168,931, if you take out of that the 21
communities in Anoka County, fifteen of them have lower levies for that value of the
home. Streetar stated the reason they have a lower rate is because they have a tax
base 25 to 35% higher than ours, our spending is average or a little bit below, our tax
base has been anemic for 30 years. Nawrocki stated you may call it anemic, but the
fact is you should go out and tell the people taxes are anemic. Murzyn Jr., Fehst,
Diehm, and Kelzenberg stated their taxes went down. Fehst stated what is more
disturbing is that his housing value went down for the second year in a row.
Economic Development Authority Meeting Minutes
November 28,2006
Page 2 of9
Streetar stated in Columbia Heights we have 41 foreclosures, 67 vacant properties and
114 houses for sale right now. Nawrocki stated he is worried about the market of
homes in the City.
Fehst stated we have explained why the increase is there, Mr. Nawrocki's concern
about eating into the fund balance is a valid one, and I know that we will made that at
the public meeting that we have next Monday night, but we feel the budget is
necessary, we have shown the leverage that we can bring to bear on redevelopment in
this town through 24 successful grant applications, through projects that will end up
increasing the assessed market value in this City by about 15% and we should have
been doing it 10, 15 or 20 years ago and we didn't, so we can either do it or not do it.
Nawrocki stated well you shake your head, that is the buracratic response, they say
that politicians look at what happened before, when nothing happened to Lincoln, and
then the world supposedly gets turned around, while staff, for better or worse does this
like the so called politicians and to justify their existence. Fehst stated the evidence is
there Bruce, for inner ring suburbs, we are the last to get going.
Murzyn Jr. stated the question before us is the budget, are there any questions
regarding our budget.
Nawrocki stated we do a lot of inter-fund borrowing, but the fact of the matter is we
have some pretty high reserves, more than we need.
Motion by Williams, second by Diehm, to Adopt Resolution 2006-10, being a
Resolution of the Columbia Heights EDA Adopting the 2007 Budget of $317,228 and a
levy of $140,898 and recommending approval of the same to the City Council.
Nawrocki asked what is the special benefit levy. Streetar stated the EDA has two levies,
the EDA is levied at .1813 and the HRA is levied at .1440, and all ofthe funding is used
to fund the EDA, which is his, Randy, and Cher's time and the associated supplies.
Nawrocki stated there isn't any levy called special benefit levy, it is the HRA levy, which
is the other on your tax statement. Streetar stated in the State Statue it is called special
benefit levy. ,
Amended Motion by Nawrocki, that the EDA levy be reduced from the $140,898 to its
current levy of $84, 965. Motion dies for a lack of a second,
Upon Vote: Nawrocki-nay, Jindra-aye, Kelzenberg-aye, Peterson-aye, Diehm-aye,
Williams-aye, Murzyn-aye. Motion Carried,
Motion by Diehm, second by Peterson, to Adopt Resolution 2006-11, being a
Resolution of the Columbia Heights EDA approving a special benefit of $176,330 and
recommending approval of the same to the City Council.
Amended motion by Nawrocki, that the special benefit of $176,330 be reduced to
$161,366, Motion dies for a lack of a second,
Economic Development Authority Meeting Minutes
November 28, 2006
Page 3 of9
Upon Vote: Nawrocki -nay, Jindra-aye, Williams-aye, Kelzenberg-aye, Peterson-aye,
Murzyn-aye, Diehm-aye. Motion Carried.
Murzyn Jr. stated the county has been saying for years they are holding the line on
taxes, we aren't going to raise your taxes, but your property taxes go up each year, so
now when property values are dropping, they are going to raise taxes aren't they.
Nawrocki stated he tried to ask that last night, he felt a lot of values went down and the
rest of the homes went up. Streetar stated the presentation he gave in September,
comparing us to 13 other cities, we are growing slower than the 12 others that we work
with, so while our values did go up, they aren't going up at the same rate as the others,
and we are the lowest on a per household basis.
Nawrocki stated if your wondering what happened with property values you might ask
yourself how many of these assisted living homes we have built in this city, compare
that to what has been done in other communities, how many of the habitat for humanity
homes do we have in this city. Streetar stated we have 21 in this city. Murzyn Jr. stated
Nawrocki don't mean assisted living but low income. Nawrocki stated that was correct.
Murzyn Jr. stated you could look at it as what did those homes replace.
Streetar stated the issue is that we have a lot of two and three bedroom ramblers that
are 1200 square feet, that were built before 1950, he lives in one in northeast
Minneapolis, the difference is his value is $40,000 to $50,000 higher than the same
house in Columbia Heights.
Williams stated the old Hemak home on 44th that Habitat built two new ones on, that
was a great improvement. Peterson stated none of our Habitat Homes have been a
problem.
Resolution 2006-12. Contract for Private Development with Pratt Ordway. LLC
Schumacher stated the EDA entered into a Preliminary Development Agreement with
Pratt Ordway Properties in March of this year to construct a senior assisted living
project. At this time, Pratt Ordway, the developer, and Comforts of Home, the builder
have prepared a redevelopment concept plan for the Apache Theatre property that
consists of 58 units of assisted living, an attached Montessori School and a 1.06 acre
commercial lot proposed for the new municipal liquor store. The Planning Commission
has approved: 1) a comprehensive plan amendment to re-guide a portion of the subject
property from commercial to high-density residential; 2)a rezoning amendment to
rezone a portion of the subject property from GB, General Business to R-3 Limited Multi
Family Residential; and 3) a preliminary plat approval. The City has received approval
of an $115,000 Community Development Block Grant from Anoka County to assist in
the demolition of the vacant Apache Theatre. The developer is obligated to reimburse
the authority for any costs incurred in reviewing the developers proposed plans for this
project and has already provided the initial deposit of $5, 000. If this agreement was
approved, demolition of the theatre would happen sometime this winter with
construction start up on May 1st, 2007. Tonight we have Lenn Pratt, Pratt Ordway;
Daryl Gemer, who he has been working with for the past few months on this project and
Brian Wingus from Comforts of Home and Steve Bubul, the EDA Attorney to answer
Economic Development Authority Meeting Minutes
November 28, 2006
Page 4 of9
any questions the board may have.
Nawrocki asked what happens ifthe Met Council doesn't approve the change. Streetar
stated their approval is purely administrative, they have reviewed it, and don't have any
problems with what the City wants to do with that location. Nawrocki asked then why
do they approve it. Streetar stated they are required to take certain steps in terms of
getting feedback from adjacent cities, which we already went out and got, before they
even starting looking for the approvals, as it is a new requirement, we already know the
responses from the other cities, they are very favorable, they don't have any problems
Murzyn Jr. asked what cities would that be. Streetar stated it was Minneapolis, New
Brighton, St. Anthony, Hilltop, and Fridley, if you touch them you have to get their
feedback. Nawrocki asked what we are going to pay for this property. Streetar stated
would be $11.00 per square foot, or about $506,000. Nawrocki asked what we sold the
little one-acre land for the Sarna's bar and grill for, less than a $1 per acre. Streetar
stated it was and if that property were as clean as this one, we would have got the
same price. Nawrocki asked how much we used of public dollars to clean up that
property. Streetar stated $120,000.
Williams asked how does the property taxes stack up from what the theatre is paying
know and what they would be with this development. Streetar stated the theatre was
valued at $600,000, so you will have closer to $8 million, with no tax increment district.
Motion by Peterson, second by Kelzenberg, to Adopt Resolution 2006-12, a Resolution
approving the contract for private development agreement between the Columbia
Heights Economic Development Authority and Pratt Ordway, LLC for the
redevelopment of 2101 37'h Avenue; and furthermore, to authorize the President and
Executive Director to enter into an agreement for the same. All ayes. Motion Carried.
Subordination Aareement for Parkview Homes LLC
Schumacher stated this is dealing with the building in Phase I of the Industrial Park,
Ryland is developing all of the units except this last one. What we are talking about
tonight is a subordination agreement, because Schafer Richardson is building this one,
not Ryland, the unit looks exactly like the other ones, they are borrowing about a million
dollars from the bank and this is the agreement, which Steve Bubul has reviewed and
he is here to answer any questions you might have.
Nawrocki stated under recitals the contract for private development, what have we
agreed to with the developer. Bubul not much, the original contract of which Schafer
Richardson is responsible for the redevelopment, the bank wants the EDA to ...
Nawrocki asked what is the recourse if the developer goes belly up, would the borrower
be able to come back to the City to get the TlF. Bubul stated there is none, neither
party has the right to come back to the City to get any more TlF, they are on their own;
they potentially could asked for it, but legally it isn't a TlF qualifying cost.
Nawrocki stated under number 3, Notice and Cure Rights, the last sentence; "In the
event there is an event of default under the Development Agreement, the Authority will
Economic Development Authority Meeting Minutes
November 28, 2006
Page 5 of9
transmit to the Lender a copy of any notice of default given by the Authority pursuant to
Article IX of the Development Agreement", what does that mean. Bubul stated if this
borrower defaults on the loan, you would get notification of the default, but would have
no obligation to pay.
Williams asked if Schafer Richardson is building this because of the contamination.
Schumacher stated there was a lot of contamination on the site, Ryland decided to step
away from it, so Schafer Richardson is going to build this one.
Motion by Kelzenberg, second by Jindra, to Approve the Subordination Agreement
between the Columbia Heights Economic Development Authority (EDA), Parkview
Homes, LLC, and M & I Marshall & IISLEY Bank; and furthermore, to authorize the
President and Executive Director to enter into an agreement for the same. All ayes.
Motion Carried. .
REDEVELOPMENT UPDATE
Activity Center
Partenheimer stated the ACAC met on September 13th to prioritize a list of amenities
and potential sites to be included for further study, which included the former NEI site,
Heritage Heights neighborhood, and adjacent to the high school. The information was
passed on to an architectural team from BKV Group, who came back at the November
9th meeting with a draft feasibility report. It was clearly stated that these are not the
proposed plans, but simply options and a means for discussion by the group.
Nawrocki asked when the next meeting is set for. Partenheimer stated it has not be set
up, but hoping for sometime in December.
Diehm stated we have seen the three sites, but is there other sites being talked about.
Partenheimer stated at the moment they are only looking at those three sites as far as
the feasibility report goes, that is what the architect has given us to review, they do
have a long way to go, so there is a possibility as a group they may look at other sites,
but not at this time. Murzyn Jr. stated he would like to see them review the Huset Park
site. Diehm stated she agreed.
Streetar stated he talked with the YMCA today, who said may come in and possibly run
it for us. They have had an on-going dialog with the City of Minneapolis for a couple of
years, initially the Mayor and Paul Ostrow said down by the lupine water park that the
Cities donation would not be in cash but in land and the water park and adjacent land
would be conveyed to the YMCA to build there. The City changed their mind and said
you can have some land west of that, closer to Central and the YMCA doesn't feel that
is a good location. Our staff has been in discussions with the YMCA for a while now
and as the meeting today they will be bringing a letter to potentially partner this project
with you. With their reputation, programming, ability to fund raise and run the facility,
they could do a better job than we could every do.
Economic Development Authority Meeting Minutes
November 28, 2006
Page 6 of9
Jindra stated the YMCA project in Andover is always busy and thinks this is a wonderful
idea to get involved with them. Nawrocki stated they have some experience raising
funds in Columbia Heights, they were looking at the site adjacent to Sullivan Lake, they
raised money, did not make promises, but never built.
Grand Central Lofts
Partenheimer stated as you seen in the article attached to the packet in July staff
applied for a Livable Communities Demonstration Account grant for funding of a parking
ramp to serve 47,698 feet of proposed commercial development. The City is expected
to know as early as mid December whether it has received this funding.
Parkview
Partenheimer stated Veit companies received the bid of demolition of the Grief, Steel
Tech and associated outbuildings in Phase III. Abatement of asbestos and other
contaminants began this week, with building demolition proposed to begin the first week
in December.
38th & Central
Partenheimer stated in late spring the EDA entered into a preliminary development
agreement with Sherman Associates to prepare a redevelopment plan for the area that
includes the Burger King, Mady's Bowl and the Columbia Heights Rental property.
Pro Source Technologies has completed the draft phase two environmental
assessment, the initial cost for clean up is estimated to be $2.8 million dollars, which is
attributed to the asbestos roof shingles dumped in this area in the past. Staff is working
with Sherman Associates to present a plan with some options for the EDA meeting in
January.
39th & Central
Streetar stated ProSource has completed a draft Phase /I study, which is an estimated
total cost for clean up between $2.8 and $3 million. That is using the type of technology
that is the least expensive, he has relayed this information to Sherman Associates, who
is putting this in their performa. We are having their performa and number reviewed by
Ehlers. What we want to do is bring to the board something that works with options
and will take a little time, because initially they were talking about 60 units of senior
Housing, 10,400 square feet commercial space, 10,000 square foot restaurant pad, and
10 units of single homes. At the January EDA meeting we will have some concept
ideas to present.
Williams stated we should take note that with Sherman we have heard some negative
comments at City Council meetings about this guy, but the article attached in the packet
tonight says he won an award for the Sears building, we should remember that.
Nawrocki stated you should look at the 19th & University to see the Botono project.
Fehst asked what it is that bother him about that project. Nawrocki stated there are two
things: 1) he has talked to some of the people in Minneapolis people who gave him
some bad reports, that isn't right or wrong, but some information he has taken in from
Economic Development Authority Meeting Minutes
November 28, 2006
Page 7 of9
someone that he does have some respect for; and 2) the low-income is rental, and he
doesn't like the looks of it. Peterson stated it isn't Sherman's fault that it is low income,
the design is nice, the structure looks fine, we don't want low income in Columbia
Heights. Murzyn Jr. stated the problem is that our housing stock is all low-income
housing.
Williams stated the homes where Murzyn and Diehm live are in a nicer area and the
lower income areas that we are now cleaning up will only help the property values, we
are doing the right thing.
New Business
Streetar passed out and reviewed in detail, a "Healthy Homes, Strong Tax Base
Initiative" item that was added to the agenda.
Streetar stated this item he did not have ready for the packet, but is something that he
has been thinking about for a while and you may want to take into consideration. When
he gave a presentation back in September he made the remark that 90% of our tax
base is residential, or about $1. 1 billion, talked about the value of our property relative
to other cities and he thought a little more about it, looked at the condition of our
property, went back into some of the past surveys and comprehensive plans and felt
you have a significant problem with some of the housing in this City. He thinks that if it
isn't addressed, you will long for the days when you only had Sheffield. It is not to
criticize of any past city effort, it is not to criticize the people, it is recognition of what he
thinks is a serious issue facing this body. What is asking them to consider tonight is: 1)
establishing long-term and substantial funding sources by extending the term of the A3-
C7 downtown T1F district for an additional 25 years and use those funds to expand the
Rehabilitation Incentive Program, currently administered by GMHC; and 2) establish a
scattered site blighted acquisition program. He is recommending this because the tax
base is the backbone of the City, 90% of it is residential property, $1.1 billion, about
70% of the property in this City is owner-occupied and 65% is single-family homes.
Older and lower value homes, typically have a higher degree of deferred maintenance.
The pictures in the back of the packet are just some examples of the boarded up
properties in the City.
Fehst stated the homes up on ih street, with the back up of water problems, the homes
were boarded up, as the city hasn't been able to get a hold of the owners and they
have been deemed uninhabitable for health reasons, one is for sale, one is a drug bust
house and another one is un-occupied for health reasons, due to the sewage backup in
their basements, these pockets are developing everywhere around the city.
Streetar stated the average estimated market value is residential property is $168,900,
if you look at the fourth map in the packet you'll see most of the lower value properties
are between 3ih and 45th on the west side of Central. If you look at the median year in
which property was built in Columbia Heights, we are about ten years older than the
metro area. If you look at the age of the property, at the west side the lighter the color
the older the property, most of the properties built before 1940 are on the west side of
Economic Development Authority Meeting Minutes
November 28, 2006
Pagc 8 of9
Central in Heritage Heights. The 1992 Comprehensive Plan did a residents survey,
which stated 43 % of the respondents indicated the condition of housing in their
neighborhood was a problem, 64% indicated the City should provide more assistance
renovating deteriorating housing and 96% indicated the City should require owners to
properly maintain their housings and aparlments. Out of 5, 700 owner-occupied
properlies, 625 or 11% were rated as poor, 1,100 or 67% were rated as fair. The Fire
Deparlment has had over 1,500 residential complaints, half were related to owner-
occupied properly and he felt Heritage Heights has been a challenge for 15 years. You
have homeowners that cannot afford to replace the items that need to be replaced.
What are the resources out there: 1) Federal resources, are the CDBG and HOME
program, which have gone down 20% in the last five years, there is a residential rehab
program, which isn't heavily subscribed, there is a fair amount of red tape that goes
along with it, and there has been 20 or so homes that have parlicipated in that program
since 1994, which isn't a lot; 2) if you look at State and Regional resources are two
types of loans, where one you can't make over 18,000, mostly for senior citizens with a
lot of wealth, but not much income, and secondly there was a "This Old House
Program", in the early 90's through the county, which said if you do a value added
project, like an addition, they would take the value of that and would not pay properly
taxes on it for five to ten years, the program was created specifically as an incentive to
revive neighborhoods, but was stopped by the legislature in 2003. Lastly, the City has
been put in $80,000 over the past five years to fund the Home Rebate program, which
has been extremely successful. If you look at your Comprehensive Plan and Goal
setting established in 2004 you said acquiring and demolishing the most seriously
deteriorated single-family homes and working. with private sector to develop appropriate
replacement housing was a imporlant, and upgrade properly. So the reason he is
recommending this is because he doesn't feel there is the resources out there at the
Federal, the State or here in the City to invest what you need to do to make an impact
on these properlies in Columbia Heights, specifically the scattered site program. You
appropriated about $900,000 towards the Heritage Heights program about a year ago,
if you decided to buy the boarded up properly, that money is gone and you would have
no more money to do anything else.
The A3, C7 T1F District, pre-1979 district, currently generates approximately $630,000 a
year in tax increment financing, and if you extend that for approximately 25 years it
would generate approximately $16 million, that you could use to buy properly in
Heritage Heights, invest in home rebate and home improvement programs through
GMHC to help homeowners to protect their housing investment. To do this you would
need to have special legislation, calling Satveer Chaudhary and Carolyn Lane to get
this. He did this in Minnetonka, St. Louis Park, Fridley, Brooklyn Park, all of these have
some form of special legislation. The City has a history of doing this as in the early 90's
you extended the district by ten years, which paid for the construction of Parkview Villa
South, or $6 million. So what he is suggesting is calling a special meeting in two
weeks, pass a resolution and take this forward and work with Satveer and Lane to get
this special legislation.
Economic Development Authority Meeting Minutes
November 28,2006
Page 9 of9
Murzyn Jr. stated this was very interesting and he is 100% behind it.
Streetar stated if you allow the district to decertify, the tax payers would see their taxes
go down $30 a year on a $168,000 home you loose tax dollars. Fehst stated we have
read that when you decertify these districts you loose local government aid, so having
Mark Ruff look into it.
Fehst stated back in 1996, when he first started here, Mel Cola va went out and
assessed these houses, we were buying these homes cheap, new homes were built,
Robbinsdale did this too, it means a lot to the residents of the City.
Streetar stated if you look at what has happened at 4828 5th, a house that GMHC
bought and the City helped fund the gap and the homes built at Harold Hoium's
properties are a great asset to the City. Nawrocki asked what is the value of the homes
on the Hoium property site. Harold Hoium stated there isn't any yard or area to do
anything on the property. Bs what he is suggestion, the session started on Jan. 3rd,
would suggest a meeting in December to discuss this.
Peterson stated we need to move forward with this community. Fehst stated present
yourself a little better than maybe some other cities, it is an operational type of thing.
Murzyn Jr. stated we should think about it, staff should get some more facts together, if
everything looks good, we should hold a meeting a take a look at it.
Nawrocki stated the City has been a gradual work in process, yes there is room for
improvement. Peterson stated you should go up and talk to the people on Tyler, they
aren't happy. Streetar stated he isn't saying it isn't a good place to live, but if you don't
keep working on it, One of the smartest things the city ever did was to build
the two downtown parking ramps.
Williams asked if Streetar talked to the people from Porky's. Streetar stated he has
contacted them to relocate here.
ADJOURNMENT
President, Murzyn, Jr., adjourned the meeting at 8:39 p.m.
Respectfully submitted,
Cheryl Bakken
Community Development Secretary
H:\EDAminutes2006\11-28-2006
ECONOMIC DEVELOPMENT AUTHORITY
SPECIAL MEETING
DECEMBER 20, 2006
CALL TO ORDERlROLL 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, Williams, Diehm
PLEDGE OF ALLEGIANCE - recited
DISCUSSION ITEMS
President Murzyn wished everyone a happy holiday season.
Adopt Rcsolution 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 37'11
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. If we
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 bc for $55,000 demolition on 37'11 and Central and $25,000 for the
Comprehensive Plan. Murzyn asked what the Comprehensive Plan process would cost.
[<ehst 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
Plan, 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 if the 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 and 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
A venue NE and funding for the City Comprehensive Plan. Upon vote: All ayes. Motion
carried.
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. I-Ie 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
indicated that would not be a problem. Nawrocki stated this is a special meeting and that
item is not on the agenda and cannot be acted upon. Streetar stated this was just
informational and that a special meeting will be requested. Murzyn asked that the notice
be sent out. Nawrocki requested a copy of the Met Council project 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 fire and
utility departments. It indicates there is a significant part of our housing stock that is in
fair or poor condition, with most existing between Central and 45'h. There has been
declining resources to do housing rehabilitation. Streetar suggested bringing resources in
to provide housing grants and low interest loans, to buy blighted property, and help with
contamination costs on the Mady's project, 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 March 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. I-Ie referred to comments in the 1990's regarding funding loss to
the county and school district 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
stock. What we have done for housing improvements has been overall very insignificant.
Motion by Peterson, second by Williams, to adopt Resolution 2006-13, a Resolution of
the Columbia Heights Economic 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 Increment District for an additional
twenty-five years, and use the funds to provide Home Rehabilitation Grants and Loans, to
acquire and demolish blighted or vacant residential properties, and remediate
contamination.
Nawrocki described the history of Park view Villa and concerns that it would be Section 8
housing. Nawrocki stated his concern that this has received no public discussion, 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, Kennedy 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; Diehm, 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.
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( Patricia Muscovitz, CMC d'
Deputy City Clerk/Council Secretary
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
SPECIAL MEETING MINUTES
MONDAY, JANUARY 8,2007
CALL TO ORDERIROLL CALL
Vice President, Jindra called the meeting to order at 6:32 p.m.
Present:
Absent:
Patricia Jindra, Bruce Nawrocki, Gary L. Peterson and Bruce Kelzenberg
Tammera Diehm, Bobby Williams and Don Murzyn Jr.
PLEDGE OF ALLEGIANCE
DISCUSSION ITEM
Adopt Resolution 2007-01, Accepting the bid for Building Demolition and
Abatement of the Apache Six Theatre
Schumacher stated the EDA entered into a Development Agreement with Pratt Ordway
Properties for the development of senior housing, a Montessori school, and
development of a little over 1 acre for a proposed liquor store. As part of the
redevelopment agreement the EDA agreed to assist in the demolition of the Apache Six
Theatre up to $115,000, which would be paid for with a Community Development Block
Grant received through Anoka County. We had ProSource Technologies do a pre-
demo analysis, bid the demolition and the abatement. The bids range from a high of
$198,563 and a low of $123,970 from Landwehr Construction. The developer is
responsible in the development agreement to pay for anything over the amount of
$115,000. Therefore, staffis recommending the bid be awarded to Landwehr
Construction for the demolition and abatement of the Apache Six Movie Theatre.
Nawrocki asked what the requirement for the distance between a school and a liquor
store. Streetar stated our ordinance requires a minimum of 300 feet between a bar (on-
sale) from a school, but doesn't apply to off sale, which he also verified with the City
Attorney to make sure.
Motion by Peterson, second by Kelzenberg, to Adopt Resolution 2007-01, a resolution
accepting the low bid from Landwehr Construction for the building demolition and
abatement of the Apache Six Theatre, located at 2101 3ih Avenue NE, Columbia
Heights, MN in the amount of $123,970. All ayes. Motion Carried.
Streetar stated Toni Pistilli, our Metropolitan Council representative will be/resenting
the City of the check for the parking deck and clean up at the January 22" meeting, not
tonight as previously planned.
ADJOURNMENT
Motion by Nawrocki, second by Peterson, to adjourn the meeting at 6:37 p.m. All ayes.
Motion Carried.
Respectfully submitted,
Cheryl Bakken
Community Development Secretary
H:\EDAminutes2007\1-8-20Q7 Special Mtg
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of January 23, 2007
AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE
NO: 6 DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Financial Report and Payment of Bills BY: Cher Bakken BY:
DATE: Januarv 11, 2007
BACKGROUND:
The bound Financial Report for the months of November and December 2006 draft Resolution 2007-02
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
December, 2006.
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 2007-02, Resolution of the Columbia Heights Economic Development
Authority (EDA) approving the Financial Statement and Payment of Bills for the months of November
and December 2006.
EDA ACTION:
H:\EDAConsent2007\November December Fin Rep 2006
EDA RESOLUTION 2007-02
RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
(EDA) APPROVING THE FINANCIAL STATEMENT FOR NOVEMBER AND DECEMBER 2006
AND PAYMENT OF BILLS FOR THE MONTHS OF NOVEMBER AND DECEMBER 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 month of November and December 2006 and the list
of bills for the months of November and December 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
,2007.
MOTION BY:
SECONDED BY:
AYES:
NAYS:
President
Attest by:
Cheryl Bakken, Assistant Secretary
H:\Resolulions2007\EDA2007-02 fin November December 2006
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
Meeting of: January 23, 2007
AGENDA SECTION: Business Items ORIGINATING DEPARTMENT: CITY MANAGER'S
NO: 7 Community Development APPROVAL
ITEM: Adopt Resolution 2007-03, BY: Randy Schumacher BY:
Elimination of Parcels from the DATE: January 18, 2007
HRA TIF District NO.1
BACKGROUND: It has come to the attention of EDA staff that two parcels of property exist
in the P3 and P4 Tax Increment District; where one half of the property lies within the district
and the other remains outside the district.
The EDA board is most familiar with the 40th & University redevelopment site (Sarna
Restaurant), where a number of parcels were assembled and are now redeveloped and
owned by one company. A portion of that property lies within the P3 Tax Increment District.
By passing Resolution 2007-03, this parcel would be removed from that Tax Increment
Financing District and the property owner would receive a single tax statement for the
property.
This action would have no impact on the taxes or property values and is considered
primarily a housekeeping issue.
RECOMMENDATION: Staff recommends adoption of Resolution 2007-03, a resolution
approving the elimination of parcels from the HRA TIF District no. 1 located within the
Central Business District Redevelopment Project.
RECOMMENDED MOTION: Move to Adopt Resolution 2007-03, a Resolution approving
the elimination of parcels from the HRA Tax Increment Financing District Number 1, located
within the Central Business District Redevelopment project in the City of Columbia Heights.
Attachments
EDA ACTION:
h:\Consent2007\EDA resZ007-03 Elimination of parcels in TIF no.1
COLUMBIA HEIGHTS ECOMOMIC DEVELOPMENT AUTHORITY
CITY OF COLUMBIA HEIGHTS
COUNTY OF ANOKA
STATE OF MINNESOTA
RESOLUTION NO. 2007-03
RESOLUTION APPROVING THE ELIMINATION OF PARCELS FROM THE
HOUSING REDEVELOPMENT TAX INCREMENT FINANCING DISTIUCT NO.
1 LOCATED WITHIN THE CENTRAL BUSINESS DISTRICT
REDEVELOPMENT PROJECT IN THE CITY OF COLUMBIA HEIGHTS.
WHEREAS, on May 27, 1997, the City of Columbia Heights City Council (thc "City) cstablishcd
the Housing Redevelopment Tax Increment Financing District No. I, County Identifier P3 and P4 (the
"TIF District"), and on December 17,2001 added parcels to the District, County Identifier S7, within the
Central Business District Redevelopment Project; and
WHEREAS, the Columbia Heights Economic Development Authority (the "EDA") is the
administrative authority for the TIF District; and
WHEREAS, the TIF District, in part, included the following parcel numbers, which were
previously certified in the TlF District (the "Parcels"):
R35-30-24-31-0 177 (new PIN from R35-30-24-31-0152) (P3)
R36-30-24-11-0088 (P4)
WHEREAS, the EDA desires by this rcsolution to cause the elimination of the Parccls from thc
TIF District thcreby reducing the size of the TIF District; and
WHEREAS, because the total cUl'rent net tax capacity of the parcels to be eliminated from the
TIF District equals or exceeds thc TIF District's original net tax capacity of the parcels, the holding of a
public hearing is not required pUl'suant to Minnesota Statutes, Section 469.175, Subd. 4.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE
EDA as follows:
1. The tax incrcment financing plan ("TIF Plan") for the TIF District is hereby modified to
removc the Parcels from the TIF District, effective for taxes payable in 2007, if administratively possible,
othcrwise effective for taxes payable in 2008.
2. Upon approval of the approval resolution by the EDA, statT are authorized and directed to
file a copy of this resolution with Anoka County along with instructions to adjust the records for the TIF
District accordingly, and file a copy of the rcsolution with the Minnesota Commissioner of Revenue and
Office of the State Auditor.
Approved by the Board of Commissioners of the Columbia Hcights Economic Development
Authority this _ day of January, 2007.
President
ATTEST:
Cheryl Bakken-Secretary
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