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HomeMy WebLinkAboutEDA MIN 05-14-07 Special ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES May 14, 2007 CALL TO ORDERIROLL CALL President, Gary L. Peterson called the meeting to order at 6:37 p.m. Present: Gary L. Peterson, Patricia Jindra, Bruce Nawrocki, Tammera Diehm, and Marlaine Szurek Absent: Bobby Williams and Bruce Kelzenberg PLEDGE OF ALLEGIANCE DISCUSSION ITEM Resolution 2007-10, Contract for Private Redevelopment Streetar stated this meeting has been called to consider redeveloping the property located at 4141 Jefferson Street in a partnership with GMHC. The property is currently a vacant, burned out, single-family home. The home was built in 1924 and had a fire on August 17, 2005. It has remained in the burned out stated since then. The lot is 80' x 129' and it has two legal conforming single-family lots, with the existing house occupying the north lot. The home was recently foreclosed and placed for sale at $120,000 by the owner, AMC Mortgage Services. The land and assessments are valued at $152, 700, with just the land at $91,600. After many discussions with the owner, he has agreed to reduce the sale price to the EDA to $86,000, which is $5,600 or 6. 1 % lower than the county's assessed land value. The cost to acquire the property, demolish the existing home, and construct two single- family homes is estimated at $535,050. The sale of both homes would generate $470,000 of revenue. In order to successfully redevelop the property, the project requires $65,050 of funding assistance to make the project feasible. The assistance would come from fund 226-Special Projects, which currently has a balance of just over $100,000. The Development Contract stipulates the EDA will assign the purchase agreement between the EDA and AMC Mortgage Services to GMHC on or before the day of closing, estimated to be no later than May 25, 2007. GMHC will purchase the property from AMC MOltgage Services for $86,000 and demolish the current structure, build two new single-family, for-sale homes, and sell them for a target price of $235, 000 each. Each home would be two-stories, and 1,650 square feet in size, with three bedrooms and two and one half baths. They would be similar to the homes built on Second Street in 2004 by GMHC. Demolition would tentatively begin in June, with construction occurring over the next 90 to 120 days. Then once construction is completed the EDA would provide up to $65,050 of funding assistance. Nawrocki asked if staff had checked into any taxes, liens or assessments that are due on the property. Streetar stated he found one lien for $1,620 from an abatement that the Fire Department initiated, which would be paid by the mortgage company at the Economic Devclopmcnt Authority Meeting Minutes May 14,2007 Special Meeting Page 2 of3 time of closing. Peterson stated it is a wondeliul oppoltunity for the City. Motion by Szurek, second by Diehm, to Adopt Resolution 2007-10, a Resolution Approving a Contract for Private Redevelopment between the Columbia Heights Economic Development Authority (EDA) and the Greater Metropolitan Housing Corporation; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried RESOLUTION NO. 2007-10 RESOLUTION APPROVING A CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND GREATER METROPOLITAN HOUSING CORPORATION BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1, Recitals, 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections, 469.090 to 469.108 ("EDA Act"), and is currently administering the Downtown CBD Redevelopment Project ("Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"). 1.02. The Authority and the Greater Metropolitan Housing Corporation (the "Redeveloper") have proposed to enter into a Contract for Private Redevelopment (the "Contract"), setting fOlih the terms and conditions of redevelopment of certain property within the Redevelopment Project located at 4141 Jefferson Street (the "Redevelopment Property"). 1.03. Pursuant to the Contract, the Redeveloper will be assigned that certain Purchase Agreement between the Authority and AMC Mortgage Services, forthe sale of 4141 Jefferson Street (the "Redevelopment Property"). Pursuantto the Contract, the Redeveloper will purchase the Redevelopment Property, divide the property into two lots and construct two single-family homes with a target price of $235,000 each, 1.04. The activities of the Authority under the Contract implement housing goals and action steps of the City's Comprehensive Plan: "Promote and preserve the single-family housing stock as the community's strongest asset by acquiring and demolishing the most seriously deteriorated single-family homes and work with the private sector to develop appropriate replacement housing, and by acquiring and assembling residential lots, as opportunities arise, for the purpose of developing infill lots," and "Provide a variety of life-cycle housing opportunities within the community, by fostering partnerships with the private sector to help diversify housing in the community," 1,05. The Board has reviewed the Contract and finds that the execution thereof and performance olthe Authority's obligations thereunder further the goals of the Comprehensive Plan and are in tl1e best interests olthe City and its residents, Section 2. Authoritv Approval: Further Proceedinas. 2.01. 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 and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. 2.03. Authority and City staff are authorized and directed to take all actions to implement the Contract. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 14th day of May 2007, Economic Development Authority Meeting Minutes May 14,2007 Special Meeting Page 3 of3 ADJOURNMENT President, Peterson, adjourned the meeting at 6:51 p.m. Respectfully submitted, d/~. Cheryl Bakken Community Development Secretary H:\EDAminutes2007\5-14-2007 Special